What was the total deferred tax expense for Aplus in 2021?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
partnership, we are generally not subject to federal income tax and most state income taxes. However, the Partnership conducts certain activities through corporate subsidiaries which are subject to federal and state income taxes. The components of the federal and state income tax expense (benefit) are summarized as follows:
| Year Ended December 31, | |||||
|---|---|---|---|---|---|
| 2023 | 2022 | 2021 | |||
| Current: |
Source: Item 22 — CONTRACTS (FDD page 68)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, the total deferred tax expense for the year ended December 31, 2021, was $10. This figure represents the sum of federal and state deferred tax expenses. The federal deferred tax expense was $7, while the state deferred tax expense was $3, totaling the $10 reported as the total deferred tax expense.
Understanding deferred tax expenses is crucial for prospective Aplus franchisees as it reflects the difference between tax expenses reported for financial accounting purposes and what is actually paid to tax authorities. This difference arises due to temporary differences between the book and tax bases of assets and liabilities. Monitoring these deferred tax implications can help franchisees better understand the long-term tax liabilities and assets of the business.
For potential Aplus franchisees, this information is useful in assessing the overall financial health and tax planning strategies of the company. While deferred tax expenses do not represent an immediate cash outflow, they can impact future tax liabilities and should be considered when evaluating the financial performance of Aplus. Reviewing these figures over several years, as presented in the FDD, provides a more comprehensive view of the company's tax management and its potential impact on profitability.