What was the short-term lease expense for Petro Stopping Center in 2024 (in millions of dollars)?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
| $ million | ||
|---|---|---|
| 2024 | 2023 | |
| Undiscounted lease liability cash flows due: | ||
| Within 1 year | 1,558 | 1,418 |
| 1 to 2 years | 1,177 | 1,025 |
| 2 to 3 years | 841 | 623 |
| 3 to 4 years | 706 | 536 |
| 4 to 5 years | 601 | 494 |
| 5 to 10 years | 1,659 | 1,795 |
| Over 10 years | 512 | 544 |
| 7,054 | 6,435 | |
| Impact of discounting | (1,133) | (1,133) |
| Lease liabilities at December 31 | 5,921 | 5,302 |
| Of which – current | 1,321 | 1,225 |
| – non-current | 4,600 | 4,077 |
The Company may enter into lease arrangements a number of years before taking control of the underlying asset due to construction lead times or to secure future operational requirements. The total undiscounted amount for future commitments for leases not yet commenced as at December 31, 2024 is $583 million (2023 $12 million).
| | | $ million
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 short-term lease expense for 2024 was $63 million. This figure represents the expenses incurred by Petro Stopping Center for leases with a term of one year or less.
For a prospective franchisee, understanding the short-term lease expense is crucial for assessing the overall financial health and stability of Petro Stopping Center. It provides insight into the company's reliance on short-term leases and its potential exposure to fluctuations in lease costs. Short-term leases can offer flexibility but may also come with higher costs or less favorable terms compared to long-term leases.
This information is valuable for potential franchisees as it allows them to evaluate the company's financial strategies and potential risks associated with leasing arrangements. Franchisees can use this data to compare Petro Stopping Center's leasing practices with industry standards and assess the potential impact on their own franchise operations.