What was the balance of income taxes as of December 31, 2022, for Baymont Inn Suites?
Baymont_Inn_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
| | Deferred income tax liabilities | | 438 | 438 | | | Net deferred income tax liabilities | $ 319 | $ 313 | | | | | | | Reported in: | | | | | Other non-current assets | | $ 13 | $ 12 | | Deferred income taxes | | 332 | 325 | | | Net deferred income tax liabilities | $ 319 | $ 313 |
WYNDHAM HOTELS & RESORTS, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In millions)
| Federal statutory rate | 21.0 | % | 21.0 | % | 21.0 | % |
|---|---|---|---|---|---|---|
| State and local income taxes, net of federal tax benefits | 3.0 | 2.5 | 2.8 | |||
| Taxes on foreign operations at rates different than U.S. federal statutory rates | 0.8 | 2.6 | 1.9 | |||
| Taxes on foreign income, net of tax credits | 0.2 | 0.3 | 0.4 | |||
| Nondeductible executive compensation | 1.7 | 1.2 | 0.7 | |||
| Foreign-derived intangible income | (1.1) | (0.8) | (0.5) | |||
| Valuation allowances | — | 0.1 | (0.6) | |||
| Puerto Rico tax credits | (3.7) | — | — | |||
| Other | (0.4) | 0.5 | (0.3) | |||
| 21.5 | % | 27.4 | % | 25.4 | % |
WYNDHAM HOTELS & RESORTS, INC. CONSOLIDATED BALANCE SHEETS (In millions, except per share amounts)
| Beginning balance | $ | 11 | $ | 8 | $ | 7 |
|---|---|---|---|---|---|---|
| Increases related to tax positions taken during a prior period | — | 7 | 4 | |||
| Increases related to tax positions taken during the current period | 2 | 2 | — | |||
| Decreases related to settlements with taxing authorities | — | (2) | — | |||
| Decreases as a result of a lapse of the applicable statute of limitations | (2 | ) (4) | (3) | |||
| Ending balance | $ | 11 | $ | 11 | $ | 8 |
WYNDHAM HOTELS & RESORTS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions)
| Year Ended December 31, | ||||
|---|---|---|---|---|
| 2024 | 2023 | 2022 | ||
| Operating activities | ||||
| Net income | $ 289 | $ 289 | $ 355 | |
| Adjustments to reconcile net income to net cash provided by/(used in) operating activities: | ||||
| Depreciation and amortization | 71 | 76 | 77 | |
| Provision for/(recovery of) doubtful accounts | 4 | 3 | (2) | |
| Impairment | 12 | — | — | |
| Deferred income taxes | 4 | (17) | (39) | |
| Stock-based compensation | 45 | 39 | 33 | |
| Gain on asset sale, net | — | — | (35) | |
| Loss on early extinguishment of debt | 3 | 3 | ||
| Net change in assets and liabilities: | ||||
| Trade receivables | (39) | (10) | 16 | |
Source: Item 23 — RECEIPTS (FDD pages 97–443)
What This Means (2025 FDD)
According to Baymont Inn Suites' 2025 Franchise Disclosure Document, deferred income taxes had a balance of ($39) as of December 31, 2022. This figure is part of the adjustments used to reconcile net income to net cash provided by or used in operating activities.
Deferred income taxes reflect the difference between income tax expense reported for financial accounting purposes and the actual income taxes payable under applicable tax laws. These amounts can arise from temporary differences between the book and tax bases of assets and liabilities. A negative balance, such as the ($39) reported for 2022, indicates that the company had a deferred tax benefit, meaning that it had deductible temporary differences or carryforwards that reduced its future income tax obligations.
For a prospective Baymont Inn Suites franchisee, understanding these figures provides insight into the financial management and tax strategies of the company. While deferred income taxes do not directly impact the daily operations of a franchise, they are an important component of the overall financial health and stability of the franchisor. Franchisees may want to further investigate the specific factors contributing to these deferred tax balances to gain a more comprehensive understanding of the franchisor's financial position.