What was Petro Stopping Center's share of impairment charges taken by associates in 2023?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
ated with investments in subsidiaries and equity-accounted entities | 660 | 661 |
The majority of the unused US state tax losses have no fixed expiry date.
Substantially all of the deductible temporary differences have no expiry date.
| Impact of previously unrecognized deferred tax or write-down of deferred tax assets on tax charge | 2024 | 2023 | 2022 |
|---|---|---|---|
| Current tax benefit relating to the utilization of previously unrecognized deferred tax assets | 71 | 138 | 232 |
| Deferred tax benefit arising from the reversal of a previous write-down of deferred tax assets | 14 | — | — |
| Deferred tax benefit relating to the recognition of previously unrecognized deferred tax assets | 10 | — | 20 |
| Deferred tax expense arising from the write-down of a previously recognized deferred tax asset | 94 | 21 | — |
The US federal capital losses expire in the period 2027-2029.
The US unused tax credits expire in the period 2025-2034.
8. Property, plant and equipment (PP&E)
| Land and land improvements | Buildings | Oil and gas propertiesa | Plant, machinery and equipment | Fittings, fixtures and office equipment | Transportation | Oil depots, storage tanks and service stations | $ million Total | |
|---|---|---|---|---|---|---|---|---|
| Cost - owned PP&E | ||||||||
| At January 1, 2024 | 1,032 | 324 | 95,605 | 27,463 | 827 | 1,141 | 2,850 | 129,242 |
| Acquisitions | 12 | — | — | — | — | — | 51 | 63 |
| Additions | 151 | 48 | 4,550 | 1,406 | 61 | 87 | 357 | 6,660 |
| Transfers from intangible assets | — | — | 342 | — | — | — | — | 342 |
| Reclassified as assets held for sale | (10) | (3) | (16) | (706) | (1) | — | — | (736) |
| Deletions and disposals | 85 | 29 | (5,966) | (480) | (17) | (310) | (153) | (6,812) |
| At December 31, 2024 | 1,270 | 398 | 94,515 | 27,683 | 870 | 918 | 3,105 | 128,759 |
| Depreciation - owned PP&E | ||||||||
| At January 1, 2024 | 285 | 177 | 60,136 | 11,303 | 638 | 701 | 690 | 73,930 |
| Charge for the year | 27 | 12 | 5,730 |
Source: Item 23 — RECEIPTS **RECEIPTS (FDD pages 87–131)
What This Means (2025 FDD)
According to Petro Stopping Center's 2025 Franchise Disclosure Document, specific impairment charges attributable to associates are not explicitly detailed. However, the document does provide an overview of impairment losses related to property, plant, and equipment (PP&E). The table included in Item 23 outlines the costs and depreciation of owned PP&E, including impairment losses, but it does not break down these losses by individual franchisees or associates. Instead, it presents a consolidated view of impairment losses for the entire Petro Stopping Center system. For instance, in 2023, total impairment losses for owned PP&E amounted to $1,505 million.
Prospective franchisees should be aware that impairment losses can significantly affect the net book amount of assets, which impacts the overall financial health of the company. While the FDD provides a general figure for impairment losses, it lacks the granularity to assess how these losses specifically affect individual franchise locations or associates. This makes it difficult for potential franchisees to gauge the financial risks associated with asset depreciation and potential write-offs at their specific location.
To gain a clearer understanding, prospective franchisees should directly inquire with Petro Stopping Center about the nature of these impairment losses. Specifically, they should ask whether any of these losses were related to franchisee-owned assets or if they primarily pertain to corporate-owned locations. Additionally, it would be prudent to ask about the factors that typically lead to impairment losses within the Petro Stopping Center system and what measures are in place to mitigate these risks at the franchise level. Understanding these details is crucial for making an informed investment decision.