What was the value of Petro Stopping Center's assets classified as held for sale in 2024?
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 |
Source: Item 23 — RECEIPTS **RECEIPTS (FDD pages 87–131)
What This Means (2025 FDD)
According to Petro Stopping Center's 2025 Franchise Disclosure Document, the company reclassified certain property, plant, and equipment (PP&E) as assets held for sale during 2024. The total value of these reclassified assets was ($736) million. This figure represents the gross cost of the assets before accumulated depreciation.
Specifically, the reclassified assets included land and land improvements valued at ($10) million, buildings at ($3) million, oil and gas properties at ($16) million, plant, machinery, and equipment at ($706) million, and fittings, fixtures, and office equipment at ($1) million. These assets were likely identified for disposal, and their value was separated from the company's ongoing operational assets for accounting purposes.
Additionally, the company also reclassified the depreciation associated with some of these assets as held for sale. This included depreciation on land and land improvements of ($6) million, buildings of ($2) million, and plant, machinery, and equipment of ($364) million, totaling ($373) million. This depreciation adjustment reflects the reduced carrying value of the assets being held for sale.
For a prospective Petro Stopping Center franchisee, this information provides insight into the company's asset management and disposal strategies. It indicates that Petro Stopping Center actively manages its asset portfolio, identifying and disposing of assets that no longer align with its strategic objectives. While this specific transaction may not directly impact franchisees, it reflects the company's overall approach to financial management and resource allocation.