What does the 'Transaction and Integration Costs' line item include for The Standardx?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
Transaction and Integration Costs—During the year ended December 31, 2024, we presented a new financial statement line item to provide enhanced visibility on our consolidated statements of income and reclassified prior-period results for comparability. Transaction and integration costs include the following:
- integration costs, which were previously recognized in integration costs during the three months ended March 31, 2024 and general and administrative expenses during the years ended December 31, 2023 and December 31, 2022 and primarily include expenses incurred related to the integration of recently acquired businesses, including certain compensation expenses, professional fees, sales and marketing expenses, and technology expenses;
- transaction costs for potential transactions, primarily related to professional fees incurred for acquisitions and dispositions, which were previously recognized in general and administrative expenses; and
- transaction costs for transactions completed during the period, primarily related to professional fees incurred for acquisitions, which were previously recognized in other income (loss), net. Transaction costs incurred during the period of a completed disposition continue to be recognized in gains (losses) on sales of real estate and other.
Source: Item 23 — Receipts (FDD pages 85–132)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, the 'Transaction and Integration Costs' line item is a new financial statement line item presented to provide enhanced visibility on their consolidated statements of income. This change was implemented during the year ended December 31, 2024, and prior-period results were reclassified for comparison.
Specifically, these costs include integration costs related to recently acquired businesses. These costs primarily encompass certain compensation expenses, professional fees, sales and marketing expenses, and technology expenses. Previously, these integration costs were recognized in integration costs during the three months ended March 31, 2024, and in general and administrative expenses during the years ended December 31, 2023, and December 31, 2022.
The 'Transaction and Integration Costs' also include transaction costs for potential transactions, mainly professional fees incurred for acquisitions and dispositions. These were previously recognized in general and administrative expenses. Additionally, the line item includes transaction costs for transactions completed during the period, primarily professional fees for acquisitions, which were previously recognized in other income (loss), net. Transaction costs incurred during the period of a completed disposition continue to be recognized in gains (losses) on sales of real estate and other.