For The Standardx, what was included in the amounts reclassified from accumulated other comprehensive loss related to derivative instrument adjustments?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
(3) Amounts reclassified from accumulated other comprehensive loss included realized losses recognized in interest expense on our condensed consolidated statements of income related to the settlement of interest rate locks.
Share Repurchases—On December 18, 2019, May 10, 2023, and May 8, 2024, our board of directors authorized repurchases of up to $750 million, $1,055 million, and $1,000 million, respectively, of our common stock.
Source: Item 1 — Financial Statements. (FDD pages 156–187)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, the amounts reclassified from accumulated other comprehensive loss related to derivative instrument adjustments in 2024 included realized losses recognized in interest expense on the condensed consolidated statements of income related to the settlement of interest rate locks.
For the period ending March 31, 2024, the reclassified amount was part of a larger set of adjustments to accumulated other comprehensive loss, which also included foreign currency translation adjustments and pension liabilities adjustments. The derivative instrument adjustments specifically addressed losses from settling interest rate locks, impacting the company's interest expense reporting.
Furthermore, The Standardx anticipates reclassifying $5 million of losses, net of insignificant tax impacts, over the subsequent 12 months. This forward-looking statement provides insight into the ongoing management and expected accounting treatment of derivative-related financial activities. A prospective franchisee should consult with a financial advisor to understand the full implications of these adjustments.