What was the total amount of goodwill for The Standardx 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 total goodwill at December 31, 2024, was $2,869. The goodwill is broken down by segment, with Management and franchising at $1,609, Owned and leased at $210, Distribution at $713, Overhead at $2, and Unallocated at $335. This goodwill is further impacted by accumulated impairment losses of $328, resulting in a net goodwill of $2,541.
Goodwill, in general accounting terms, represents the intangible assets acquired in a business combination that are not separately identifiable. It often includes the value of a company's brand reputation, customer relationships, and intellectual property. For The Standardx, the goodwill is attributable to growth opportunities from expanding all-inclusive resort offerings and destination management services, as well as synergies expected from managing and licensing the Bahia Principe brand to the Unlimited Vacation Club business.
It is important to note that the FDD also mentions that at December 31, 2024, The Standardx had not completed the assignment of goodwill attributed to the Bahia Principe Transaction to reporting units, indicating that the goodwill allocation may be subject to further adjustments. Additionally, during the year ended December 31, 2024, The Standardx recognized $148 million of goodwill impairment charges due to the carrying values of certain reporting units exceeding their fair values, which could impact future financial performance. These impairment charges reflect a decline in the perceived value of certain segments of the business, which could be a risk factor for potential investors.