What was the share-based compensation expense for Petro Stopping Center in 2024, after the income tax benefit?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
nture amounting to $63 million in the form of an investment in subsidiary from an affiliate of the bp group. In 2022, the Company received contributions amounting to $820 million from its immediate parent in the form of investment in a subsidiary in connection with the acquisition of the public units of BP Midstream Partners LP.
Other
No subsidiary of the Company has non-controlling interests owned by affiliates of the bp group.
The bp group provides certain employees with shares and share options as part of their remuneration packages. Certain employees of the Company participate in these share-based compensation plans of bp. Restricted share awards are generally exercisable three to four years after the date of grant. Option awards are generally exercisable one to four years after the date of grant and lapse after 10 years. For share-based plans, the awards granted by the bp group have an exercise price equal to the market price on the date of grant. The Company has no obligation to settle these share-based payment arrangements. As such, the awards of these share-based payments are treated as capital contribution from th
Source: Item 14 — Other investments (FDD pages 131–208)
What This Means (2025 FDD)
According to Petro Stopping Center's 2025 Franchise Disclosure Document, the share-based compensation expense for the company was $223 million in 2024. After accounting for an income tax benefit, the expense was $171 million. The FDD also provides figures for 2023 and 2022. In 2023, the share-based compensation expense was $256 million, which decreased to $198 million after the income tax benefit. In 2022, the share-based compensation expense was $262 million, which decreased to $203 million after the income tax benefit.
These share-based compensation plans are part of the remuneration packages for certain employees of the bp group, in which certain employees of Petro Stopping Center participate. These plans involve shares and share options. Restricted share awards generally vest three to four years after the grant date, while option awards are typically exercisable one to four years after the grant date and lapse after 10 years. The awards granted by the bp group have an exercise price equal to the market price on the date of grant.
Since Petro Stopping Center has no obligation to settle these share-based payment arrangements, the awards are treated as capital contributions from the bp group and are accounted for as equity transactions by the company. The net tax benefits related to options exercised were $52 million in 2024, $58 million in 2023, and $59 million in 2022. This information is relevant to prospective franchisees as it provides insight into the financial structure and employee compensation strategies of Petro Stopping Center and its parent company, bp.