What was the balance of translation adjustments for Corcoran as of January 1, 2022?
Corcoran Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: RECEIPTS]
| Translation | Pension | Other | |||
|---|---|---|---|---|---|
| (a) | Adjustments Adjustment | Liability Loss (b) | Comprehensive | ||
| Balance at January 1, 2022 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | $ (9) | $(41) $ | (50) | ||
| Other comprehensive income before reclassifications . . . . . . . . . . . . . . . . . . | — | 1 | 1 | ||
| Amounts reclassified from accumulated other comprehensive loss . . . . . . . | — | 2 (c) | 2 | ||
| Income tax expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | — | (1) | (1) | ||
| Current period change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | — | 2 | 2 | ||
| Balance at December 31, 2022 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | (9) | (39) | (48) | ||
| Other comprehensive income before reclassifications . . . . . . . . . . . . . . . . . . | — | 2 | 2 | ||
| Amounts reclassified from accumulated other comprehensive loss . . . . . . . | — | 3 (c) | 3 | ||
| Income tax expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | — | (1) | (1) | ||
| Current period change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | — | 4 | 4 | ||
| Balance at December 31, 2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | (9) | (35) | (44) | ||
| Other comprehensive (loss) income before reclassifications . . . . . . . . . . . . . | (1) | 3 | 2 | ||
| Amounts reclassified from accumulated other comprehensive loss . . . . . . . | — | 2 (c) | 2 | ||
| Income tax expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | — | (2) | (2) | ||
| Current period change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | (1) | 3 | 2 | ||
| Balance at December 31, 2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | $ (10) | $(32) $ | (42) |
Source: Item 23 — RECEIPTS (FDD pages 75–276)
What This Means (2025 FDD)
According to Corcoran's 2025 Franchise Disclosure Document, the balance of currency translation adjustments as of January 1, 2022, was a negative $9. This figure represents the cumulative gains or losses resulting from translating foreign currency financial statements into U.S. dollars. These adjustments are included in accumulated other comprehensive income (loss).
For a prospective Corcoran franchisee, understanding currency translation adjustments is important if the franchise has foreign subsidiaries with non-U.S. dollar functional currencies. The translation of these currencies into U.S. dollars can result in gains or losses that affect the overall financial picture of the company. These adjustments do not represent actual cash flows but rather are accounting adjustments to reflect the impact of currency fluctuations.
The FDD also provides additional context regarding translation practices, noting that assets and liabilities of foreign subsidiaries are translated at exchange rates at the balance sheet dates, while equity accounts are translated at historical spot rates. Revenues and expenses are translated at average exchange rates during the periods presented. These practices are standard accounting procedures for companies with international operations.
It is important to note that these translation adjustments are part of the broader 'accumulated other comprehensive loss,' which also includes items like minimum pension liability adjustments. Franchisees should review the entire table in Item 23 to understand all components of comprehensive income or loss and how they impact the overall equity of Anywhere Group, the parent company of Corcoran.