What was the income tax amount for Best Western in 2023 (in thousands)?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
| (in thousands) | 2023 | 2022 |
|---|---|---|
| REVENUES: | ||
| Fees, dues and assessments | $ 293,536 | $ 276,766 |
| Program revenues | 180,273 | 165,915 |
| Other revenues | 62,787 | 51,199 |
| TOTAL REVENUES | 536,596 | 493,880 |
| EXPENSES: | ||
| Compensation, taxes and benefits | 197,303 | 175,005 |
| Advertising and promotion | 121,415 | 105,950 |
| Depreciation and amortization | 18,162 | 14,748 |
| General and administrative | 88,222 | 77,477 |
| Program cost of sales | 19,540 | 16,531 |
| TOTAL EXPENSES | 444,642 | 389,711 |
| Net realized and unrealized gains (losses) on investments | 12,414 | (1,391) |
| Interest and dividend income, and interest expense, net | 12,150 | 2,160 |
| Excess of revenues over expenses before income taxes | 116,518 | 104,938 |
| Income tax provision | (27,498) | (17,169) |
| Excess of revenues over expenses | 89,020 | 87,769 |
| Excess of expenses over revenues | ||
| attributable to non-controlling interests | 299 | 310 |
| EXCESS OF REVENUES OVER EXPENSES | ||
| ATTRIBUTABLE TO BEST WESTERN INTERNATIONAL, INC. | $ 89,319 | $ 88,079 |
Source: Item 23 — Receipts (FDD pages 108–413)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, the income tax provision for Best Western in 2023 was $27,498 (in thousands). This figure represents the total amount of income taxes, including federal, foreign, and state taxes, that Best Western accrued during that year. This is an important figure for prospective franchisees to consider as it provides insight into the financial performance and tax obligations of the company.
Specifically, the income tax provision is broken down into current and deferred taxes. The current portion includes federal taxes of $19,580, foreign taxes of $856, and state taxes of $5,135 (all in thousands), totaling $25,571. The deferred portion includes federal taxes of $1,405, foreign taxes of $46, and state taxes of $476 (all in thousands), totaling $1,927. These figures provide a detailed view of the different types of taxes that contribute to the overall income tax provision.
Understanding Best Western's income tax obligations can help a potential franchisee assess the financial health and stability of the organization. It's also worth noting that certain amounts may have been reclassified to conform with current year presentation, as indicated in the FDD. Reviewing these figures in the context of Best Western's overall revenues and expenses can offer a more comprehensive understanding of the company's financial performance.