What was the total amount of deferred tax assets for Ben Jerrys as of December 31, 2023?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
--------|------|--|--| | | 20 | 023 | 2022 | | | | Current: | | | | | | | Federal | $ | 158 $ | - | | | | State | | 7 165 | - | | | | Deferred: | | | | | | | Federal | | 183 | (54) | | | | State | | 42 225 | (13) (67) | | | | Total income tax provision (benefit) | $ | 390 $ | (67) | | | Notes to Consolidated Financial Statements (Dollars in Thousands) December 31, 2023 and 2022
Significant components of the Company's deferred tax assets and liabilities are as follows:
| As of December 31, | |||||
|---|---|---|---|---|---|
| 2023 | 2022 | ||||
| Deferred tax assets: | |||||
| Fixed assets | $ | 115 | $ | 85 | |
| Lease liabilities | 76 | 99 | |||
| Deferred reve |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 89–133)
What This Means (2025 FDD)
According to Ben Jerrys's 2025 Franchise Disclosure Document, the total deferred tax assets as of December 31, 2023, amounted to $492,000. This figure is comprised of several components, including fixed assets valued at $115,000, lease liabilities at $76,000, deferred revenue at $41,000, other accruals at $10,000, state net operating losses (NOL) at $244,000, and deferred revenue state taxes at $6,000. There was no federal NOL carryforward listed for that year.
Deferred tax assets typically arise when there are differences between the accounting treatment and the tax treatment of certain items, such as depreciation or revenue recognition. These assets represent future tax benefits that Ben Jerrys can use to reduce its tax obligations in later years. For a franchisee, understanding these deferred tax assets is less directly impactful than understanding immediate tax liabilities, but it provides insight into the overall financial health and tax planning strategies of the Ben Jerrys franchise system.
The presence and size of deferred tax assets can indicate that Ben Jerrys has been making strategic investments or has experienced certain types of losses that can be used to offset future income. However, the value of these assets depends on Ben Jerrys's ability to generate sufficient future taxable income to utilize the deductions or credits. Prospective franchisees might want to inquire about the specific events or transactions that gave rise to these deferred tax assets to better assess their reliability and potential impact on the company's future tax liabilities.
It is important to note that deferred tax assets are subject to change based on various factors, including changes in tax laws, Ben Jerrys's future financial performance, and management's assessment of the recoverability of these assets. Therefore, franchisees should not rely solely on the historical figures presented in the FDD but should also consider the potential risks and uncertainties associated with deferred tax assets when evaluating the overall financial condition of Ben Jerrys.