For Crowne Plaza, where are the 'insurance receivable, net' assets included in the consolidated balance sheets?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
e at December 31, 2024 and 2023 is $240.5 million and $290.9 million, respectively. Impairment losses of $1.1 million, $0 and $0 were recognized on individual software assets during any of the years ended December 31, 2024, 2023 and 2022 respectively. In addition, $2.8 million, $0 and $0 were recognized within the System Fund.
In 2006, the Company entered into a 99-year finance lease on the InterContinental Hotel in Boston, Massachusetts, which is recorded in 'property and equipment' on the consolidated balance sheets. Assets capitalized related to this lease were $116.7 million
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to Crowne Plaza's 2025 Franchise Disclosure Document, the 'insurance receivable, net' assets are included in 'other assets' within the consolidated balance sheets. The insurance receivable represents the cash surrender value of key man life insurance policies, reduced by any outstanding loan amounts against these policies.
As of December 31, 2024, the accumulated cash surrender value was $33.0 million, which was reduced by outstanding loan amounts of $31.5 million. For the prior year, as of December 31, 2023, the accumulated cash surrender value was $31.9 million, reduced by loan amounts of $30.4 million.
This means that Crowne Plaza accounts for these key man life insurance policies by netting the cash surrender value against any loans taken out against the policies, and the net amount is then reported as part of 'other assets' on the company's consolidated balance sheets. Prospective franchisees should understand how Crowne Plaza manages and accounts for its assets, as this can provide insights into the company's financial health and risk management practices.