What was the total amount of Aplus' deferred tax assets related to 'Other' on December 31, 2022?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
| | Year Ended December 31, | | | | | |------------------------------------------------------|-------------------------|----|---------------|----|------| | | 2023 | | 2022 (in millions) | | 2021 | | Income tax expense at United States statutory rate | $ 90 | $ | 105 | $ | 116 | | Increase (reduction) in income taxes resulting from: | | | | | | | Partnership earnings not subject to tax | (64) | | (74) | | (96) | | State and local tax, including federal expense | 10 | | 1 | | 7 | | Other | — | | (6) | | 3 | | Income tax expense | $ 36 | $ | 26 | $ | 30 |
Deferred taxes result from the temporary differences between financial reporting carrying amounts and the tax basis of existing assets and liabilities. Principal components of deferre
Source: Item 22 — CONTRACTS (FDD page 68)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, the company's deferred tax assets related to 'Other' was $22 as of December 31, 2022. This figure is part of the company's overall financial reporting and reflects items that will likely become deductible for tax purposes in future years. Deferred tax assets typically arise from temporary differences between accounting and tax treatment of certain items.
For a prospective Aplus franchisee, understanding deferred tax assets is important for assessing the financial health and tax planning strategies of the company. While franchisees do not directly share in these assets, the overall financial stability of Aplus can impact the support and resources available to franchisees.
The 'Other' category may include a variety of items, and it's important to note that the specific composition of this category is not detailed in this excerpt. A potential franchisee might want to inquire with Aplus about the specific items included in this 'Other' category to gain a more comprehensive understanding of the company's deferred tax position.