What was the value of The Standardx's AFS debt securities as of December 31, 2023?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
rograms included:
• $473 million and $330 million, respectively, of AFS debt securities with contractual maturity dates ranging from 2025 through 2069. The amortized cost of our AFS debt securities approximates fair value;
- $25 million, in both periods, of time deposits classified as HTM debt securities with a
Source: Item 23 — Receipts (FDD pages 85–132)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, the value of their available-for-sale (AFS) debt securities as of December 31, 2023, was $330 million. These securities had contractual maturity dates ranging from 2025 through 2069. The document indicates that the amortized cost of these AFS debt securities approximates their fair value.
AFS securities are recorded at fair value based on listed market prices or dealer price quotations. Unrealized gains and losses on AFS debt securities are recorded in accumulated other comprehensive income (loss) on The Standardx's consolidated balance sheets, while realized gains and losses are recognized in other income (loss), net on their consolidated statements of income. These securities are assessed quarterly for expected credit losses, which are also recognized in other income (loss), net.
For a prospective franchisee, this information provides insight into how The Standardx manages its investments and the types of financial instruments it holds. Understanding the nature and valuation of these securities can help franchisees assess the financial stability and investment strategies of the company. The classification of these securities as AFS also indicates how changes in their value impact The Standardx's financial statements.