What was the total deferred federal income tax provision for Best Western in 2022 (in thousands)?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
and other current assets consisted of the following:
| (in thousands) | 2023 | 2022 |
|---|---|---|
| Prepaid expenses and other current assets | $ 17,060 | $ 16,301 |
| Current contract assets | 957 | 964 |
| Total | $ 18,017 | $ 17,265 |
(5) Income Taxes
The income tax provision for the years ended N
Source: Item 23 — Receipts (FDD pages 108–413)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, the total deferred federal income tax provision for 2022 was $1,019,000. This figure is part of the broader income tax provision, which includes both current and deferred taxes at the federal, foreign, and state levels. Understanding the components of the income tax provision can help prospective franchisees assess Best Western's financial health and stability.
The deferred portion of income taxes, which includes federal, foreign, and state taxes, totaled $1,179,000 in 2022. This indicates that Best Western had temporary differences between its book income and taxable income, resulting in a deferred tax liability. These deferred amounts will eventually be paid or recovered in future years as the temporary differences reverse.
For a prospective Best Western franchisee, this information provides insight into the company's tax management strategies and its overall financial performance. While franchisees are not directly responsible for Best Western's corporate income taxes, understanding these figures can contribute to a more informed investment decision. It's important to consider these figures in conjunction with other financial data provided in the FDD to gain a comprehensive view of Best Western's financial standing.