What was the amount of taxation for Petro Stopping Center in 2023?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
3 | | Liabilities | 57 | 84 | 67 | | Net assets | 814 | 795 | 706 | | Cash used in operating activities | 107 | 85 | 86 | | Cash used in investing activities | 734 | 392 | 375 |
a Amount capitalized at December 31, 2024, December 31, 2023, and December 31, 2022 relates to assets in various regions. The largest of these is $0.4 billion capitalized in the Gulf of America, USA (2023 $0.5 billion capitalized in the Gulf of America, USA, 2022 $0.4 billion capitalized in the Gulf of America, USA).
7. Taxation
Tax on profit
| | 2024 | 2023 | 2022 | |--------------------------
Source: Item 23 — RECEIPTS **RECEIPTS (FDD pages 87–131)
What This Means (2025 FDD)
According to Petro Stopping Center's 2025 Franchise Disclosure Document, income tax obligations within the U.S. are handled by its parent company, BP America. Therefore, the financial statements for Petro Stopping Center itself do not present any outstanding U.S. income tax receivables, payables, or cash flows.
However, the document does mention a tax-related charge within other comprehensive income/loss. In 2023, Petro Stopping Center recognized a $176 million charge. This charge was primarily due to the deferred tax impact of natural gas hedges.
For a prospective franchisee, this means that the direct income tax liabilities for the Petro Stopping Center business are managed at the parent company level. However, franchisees should be aware of how broader tax strategies, such as those involving natural gas hedges, could impact the overall financial picture presented by Petro Stopping Center.