Does the Delta Hotels By Marriott FDD include a balance sheet?
Delta_Hotels_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
porting period and make revisions based on changes in facts and circumstances. There w e r e no accruals related to legal contingencies at December 31, 2024 and 2023, respectively.
Notes to Financial Statements (continued) ($ in Thousands)
2. Summary of Significant Accounting Policies (continued)
Income Taxes
The Company is an LLC and under the existing provisions of the Internal Revenue Code and applicable state tax law, income and losses of the LLC flow through to the member of the LLC; accordingly, no provision for federal and state income taxes has been provided for in the accompanying financial statements of the Company.
New Accounting Standards
We do not expect that accounting standards updates issued to date and that are effective after December 31, 2024 will have a material effect on our financial statements.
3. Intangible Assets
The following table details the composition of our intangible assets:
| 2024 | 2023 | |
|---|---|---|
| Costs incurred to obtain contracts with customers | $ 31,016 | $ 30,858 |
| Other contract intangibles | 1,764 | 1,764 |
| $ 32,780 | $ 32,622 | |
| Accumulated amortization | (11,143) | (9,782) |
| $ 21,637 | $ 22,840 |
We capitalize only incremental costs that Marriott incurs on our behalf to acquire franchise and license agreements, which we reimburse through a related party payable. We record these costs incurred to obtain contracts with customers within the "Intangible assets, net" caption of our Balance Sheets. We amortize these costs on a straight-line basis over the initial term of the underlying agreements, ran
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 132)
What This Means (2025 FDD)
According to the 2025 Delta Hotels By Marriott Franchise Disclosure Document, the document includes balance sheets. Specifically, Marriott records costs incurred to obtain contracts with customers within the "Intangible assets, net" caption of their Balance Sheets. These costs are then amortized over the term of the agreements, which range from 10 to 30 years, and are reflected in the "Contract investment amortization" and "Cost reimbursement revenue" captions of their Income Statements.
In 2019, Delta Hotels By Marriott recorded intangible assets of $1,764 related to its Parent's acquisition of its partner's remaining interest in a joint venture. The related franchise contracts have a weighted average term of 24 years. The company amortizes these acquired intangible assets on a straight-line basis over the remaining term of the underlying agreements and records the expense in the "Amortization and depreciation expense" caption of its Income Statements. The company derecognized the carrying amount of all previously capitalized costs incurred to obtain these contracts of $3,105. For these acquired definite-lived intangible assets, their estimated aggregate amortization expense for each of the next five fiscal years through December 31, 2029, will be approximately $67.
Additionally, the notes to the financial statements in the Delta Hotels By Marriott FDD indicate that the company evaluated subsequent events through March 26, 2025, and determined there were no recognized or unrecognized events that would require an adjustment or additional disclosure as of December 31, 2024. This suggests that the financial statements, including the balance sheets, are current up to that date.