What was the amount of goodwill disposed of by The Standardx during the year?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
| Management and franchising | Owned and leased | Distribution (1) | Overhead | Unallocated (2) | Total | |
|---|---|---|---|---|---|---|
| Balance at January 1, 2023 | ||||||
| Goodwill | $ 1,465 | $ 210 | $ 1,589 | $ 2 | $ — | $ 3,266 |
| Accumulated impairment losses | (4) | (161) | — | — | — | (165) |
| Goodwill, net | $ 1,461 | $ 49 | $ 1,589 | $ 2 | $ — | $ 3,101 |
| Activity during the year | ||||||
| Additions | 62 | — | 39 | — | — | 101 |
| Foreign currency translation | 3 | — | — | — | — | 3 |
| adjustments | ||||||
| Balance at December 31, 2023 | ||||||
| Goodwill | 1,530 | 210 | 1,628 | 2 | — | 3,370 |
| Accumulated impairment losses | (4) | (161) | — | — | — | (165) |
| Goodwill, net | $ 1,526 | $ 49 | $ 1,628 | $ 2 | $ — | $ 3,205 |
| Activity during the year | ||||||
| Additions | 86 | — | — | — | 336 | 422 |
| Disposals | — | — | (914) | — | — | (914) |
| Impairment losses | (110) | (15) | (38) | — | — | (163) |
| Measurement period adjustments | — | — | (1) | — | — | (1) |
| (Note 7) | ||||||
| Foreign currency translation | (7) | — | — | — | (1) | (8) |
| adjustments |
Source: Item 23 — Receipts (FDD pages 85–132)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, the company disposed of $914 million in goodwill during the year ended December 31, 2024. This disposal was specifically within the 'Distribution' segment of the company's operations. Goodwill, in accounting terms, represents the intangible assets of a business, such as brand reputation and customer relationships, that are acquired when one company purchases another.
The table in Item 23 of The Standardx's FDD provides a breakdown of goodwill activity across different segments of the business. The 'Disposals' row shows a value of ($914) million in the 'Distribution (1)' column, indicating the reduction in goodwill for that segment. This means that The Standardx reduced the goodwill associated with its distribution operations by this amount during 2024.
For a prospective franchisee, this information is relevant because it provides insight into how The Standardx manages its assets and the financial activities within its various business segments. Significant disposals of goodwill can sometimes indicate strategic shifts or restructuring within the company. While not directly impacting day-to-day franchise operations, understanding these broader financial activities can help a franchisee assess the overall stability and direction of The Standardx.