What was the unrecognized actuarial loss (gain) recognized in accumulated other comprehensive income for Crowne Plaza for the year ended December 31, 2024?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
| Oracle America, Inc. | Cr Salesperson: DO NOT FILL IN REQUIRED | ALTERNATE Bill To Address: (i.e. PO Box) | ||
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| Sole Proprietorship Non-Profit Partnership Corporation Subsidiary Division LLC Management Company | ||||
| owne Plaza FDD - 4-15-25 (385) Bill-To Taxpayer ID Number (TIN/EIN) DON'T FILL IN REQUIRED (this will be used as the Bill To address unless an alternate address is provided) | ||||
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| Accounts Payable Contact Name Accounts Payable Contact Phone # | Accounts Payable Contact email address: | |||
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| Site Name / Trade Name S | ite Identifier (store #, inn code) | |||
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| Name Title Date | Notes to Consolidated Financial Statements (continued) |
9. Employee Benefit Plans (continued)
The
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to Crowne Plaza's 2025 Franchise Disclosure Document, the net actuarial gain or loss recognized in other comprehensive income for the year ending December 31, 2024, was $(1.8) million for pension plans and $(0.4) million for postretirement programs. This means that for pension plans, there was a $1.8 million gain, and for postretirement programs, there was a $0.4 million gain. These gains or losses are related to changes in the actuarial assumptions used to estimate future benefit obligations and the fair value of plan assets.
For a prospective Crowne Plaza franchisee, understanding these figures provides insight into the financial management and stability of the employee benefit plans. Actuarial gains can reduce the company's expenses related to these plans, while losses can increase them. These gains and losses can impact the overall financial health of Crowne Plaza, which in turn could affect the resources available for franchisee support and development.
It's also important to note that these gains and losses are amortized from other comprehensive income and included in the net periodic pension cost over time. For the year ended December 31, 2024, $0 was amortized for pension plans, and $0.6 million was amortized for postretirement programs. This amortization process smooths out the impact of actuarial gains and losses on the company's income statement, providing a more stable view of pension and postretirement expenses. The company estimates that in 2025, $0 and $0.6 million of the actuarial gain will be amortized for the pension plans and postretirement benefit programs, respectively, all on a pretax basis.
Finally, Crowne Plaza estimates that it will contribute $3.2 million to the pension plans and $1.1 million to the postretirement benefit programs in 2025. These contributions are necessary to fund the benefit obligations and ensure the plans remain solvent. Franchisees should be aware of these ongoing obligations, as they reflect the company's commitment to its employees and retirees, and can impact the company's financial planning and resource allocation.