What was the amount of non-cash consideration related to the sale of businesses for Petro Stopping Center in 2023?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
Proceeds from disposals of businesses in 2024 include $1,331 million relating to prior period disposals in Alaska. At December 31, 2024 deferred consideration relating to disposals amounted to $6 million receivable within one year (2023 $49 million and 2022 $80 million) and $165 million receivable after one year (2023 $133 million and 2022 $92 million). In addition, contingent consideration receivable relating to disposals amounted to $0 at December 31, 2024 (2023 $763 million and 2022 $1,174 million). These amounts of contingent consideration are reported within Other investments on the Company's balance sheet - see Note 14 for further information.
The principal transaction categorized as a business disposal in 2023 was the disposal of the bp-Husky Toledo refinery to Cenovus Energy.
Source: Item 23 — RECEIPTS **RECEIPTS (FDD pages 87–131)
What This Means (2025 FDD)
According to Petro Stopping Center's 2025 Franchise Disclosure Document, deferred consideration relating to disposals amounted to $49 million receivable within one year and $133 million receivable after one year in 2023. Additionally, contingent consideration receivable relating to disposals amounted to $763 million in 2023. These figures provide insight into the financial transactions beyond immediate cash exchanges that Petro Stopping Center engaged in during that year.
For a prospective franchisee, understanding these figures is crucial as they reflect the financial health and strategic decisions of Petro Stopping Center. The deferred consideration indicates amounts still to be received from past disposals, while contingent consideration represents potential future income based on certain conditions being met. These non-cash considerations can impact the overall financial stability and future prospects of the company, which in turn can affect the franchisee's business.
It's important to note that these amounts are reported within Other investments on the Company's balance sheet, as detailed in Note 14 of the FDD. A potential franchisee should review Note 14 to gain a deeper understanding of the nature and terms of these considerations. Furthermore, understanding the context of these disposals, such as the bp-Husky Toledo refinery disposal to Cenovus Energy in 2023, can provide a clearer picture of Petro Stopping Center's strategic direction and risk management.