What was the value of Petro Stopping Center's plant, machinery, and equipment at December 31, 2024?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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 December 31, 2024 | 1,270 | 398 | 94,515 | 27,683 | 870 | 918 | 3,105 | 128,759 |
| Owned PP&E - net book amount at | 967 | 212 | 34,706 | 15,441 | 192 | 475 | 2,130 | 54,123 |
| December 31, 2024 | ||||||||
| Right-of-use assets - net book amount at | — | 325 | — | 1,255 | 3 | 775 | 3,171 | 5,529 |
| December 31, 2024b | ||||||||
| Total PP&E - net book amount at | 967 | 537 | 34,706 | 16,696 | 195 | 1,250 | 5,301 | 59,652 |
| December 31, 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 cost of owned plant, machinery, and equipment was $27,683 million at December 31, 2024. After accounting for depreciation, the net book amount for owned plant, machinery, and equipment was $15,441 million at the same date. Additionally, right-of-use assets for plant, machinery, and equipment had a net book amount of $1,255 million at December 31, 2024. Therefore, the total net book amount for plant, machinery, and equipment, including both owned and right-of-use assets, was $16,696 million at the end of 2024.
These figures reflect the total investment in plant, machinery, and equipment used in Petro Stopping Center's operations. The cost represents the original purchase price of these assets, while the net book amount reflects the value of these assets after accounting for depreciation. Depreciation is the allocation of the cost of an asset over its useful life, reflecting the wear and tear or obsolescence of the asset.
The inclusion of right-of-use assets indicates that Petro Stopping Center leases some of its plant, machinery, and equipment. Right-of-use assets represent the company's right to use these leased assets for the term of the lease. The net book amount of these assets is also included in the total value of plant, machinery, and equipment. These figures are important for prospective franchisees to understand the scale of investment in physical assets required to operate a Petro Stopping Center franchise and how these assets are accounted for on the company's balance sheet.
It is important to note that these figures represent the value of property, plant, and equipment for the entire company, not just for franchised locations. A prospective franchisee should inquire about the specific plant, machinery, and equipment required for their individual franchise location and the associated costs.