What was the balance of The Standardx's goodwill, net of accumulated impairment losses, related to financing receivables at December 31, 2024?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
| (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 | ||||||
| Balance at December 31, 2024 | ||||||
| Goodwill | 1,609 | 210 | 713 | 2 | 335 | 2,869 |
| Accumulated impairment losses | (114) | (176) | (38) | — | — | (328) |
| Goodwill, net | $ 1,495 | $ 34 | $ 675 | $ 2 | $ 335 | $ 2,541 |
(1) At December 31, 2023, one of our
Source: Item 23 — Receipts (FDD pages 85–132)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, the balance of goodwill, net of accumulated impairment losses, as of December 31, 2024, was $2,541 million. This figure represents the overall goodwill The Standardx possesses after accounting for any reductions in value due to impairment. The goodwill is spread across different segments of The Standardx's operations, including management and franchising, owned and leased, distribution, overhead, and unallocated amounts.
Specifically, the table provided breaks down the goodwill and accumulated impairment losses across these segments. For instance, the management and franchising segment had a goodwill of $1,609 million with accumulated impairment losses of $114 million, resulting in a net goodwill of $1,495 million. The owned and leased segment had a goodwill of $210 million with accumulated impairment losses of $176 million, resulting in a net goodwill of $34 million. The distribution segment had a goodwill of $713 million with accumulated impairment losses of $38 million, resulting in a net goodwill of $675 million. The overhead segment had a goodwill of $2 million with no accumulated impairment losses, resulting in a net goodwill of $2 million. The unallocated segment had a goodwill of $335 million with no accumulated impairment losses, resulting in a net goodwill of $335 million.
It is important to note that this goodwill is not specifically tied to financing receivables. The FDD mentions financing receivables separately under assets, stating that financing receivables, net of allowances, were $368 million at December 31, 2024. The goodwill represents the intangible assets acquired through business combinations and is subject to impairment reviews, as indicated by the accumulated impairment losses. A prospective franchisee should understand that goodwill can fluctuate based on The Standardx's financial performance and market conditions, potentially impacting the overall financial health of the company.