What was the total value of Ben Jerrys' deferred tax assets 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' 2025 Franchise Disclosure Document, the total deferred tax assets as of December 31, 2023, were $492,000. This figure represents the sum of several components, including fixed assets ($115,000), lease liabilities ($76,000), deferred revenue ($41,000), other accruals ($10,000), state net operating losses (NOL) ($244,000), and deferred revenue state taxes ($6,000). There was no federal NOL carryforward listed for 2023.
Deferred tax assets arise because of temporary differences between the book value of an asset or liability and its tax basis. These assets are essentially future tax benefits that Ben Jerrys can use to reduce taxable income in later years. The largest components of Ben Jerrys' deferred tax assets are related to state net operating losses and fixed assets.
For a prospective franchisee, understanding these deferred tax assets is important for assessing the overall financial health of Ben Jerrys. While deferred tax assets are not cash on hand, they represent potential future tax savings that can improve the company's profitability. It is also worth noting that deferred tax liabilities, primarily from intangible assets ($143,000) and lease assets ($73,000), reduce the net deferred tax assets to $276,000 as of December 31, 2023. Franchisees should consult with a financial advisor to understand the implications of these figures.