What was the income tax benefit for Better Homes And Gardens Real Estate in 2023?
Better_Homes_And_Gardens_Real_Estate Franchise · 2025 FDDAnswer from 2025 FDD Document
tax credit study for tax years 2016 through 2022.
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Deferred income taxes result from temporary differences between the amount of assets and liabilities recognized for financial reporting and tax purposes. The components of the deferred income tax assets and liabilities are as follows:
| 2024 2023 Deferred income tax assets: Net operating loss carryforwards $ 37 $ 36 Tax credit carryforwards 32 28 Accrued liabilities and deferred income 108 117 Interest expense limitation carryforward 20 5 Operating leases 105 120 Minimum pension obligations 12 13 Provision for doubtful accounts 9 10 Liability for unrecognized tax benefits 2 2 Total deferred tax assets 325 331 Less: valuation allowance (51) Total deferred income tax assets after valuation allowance 274 306 Deferred income tax liabilities: Depreciation and amortization 367 384 Operating leases 87 99 | December 31, | |
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| (25) | ||
| 9 | Prepaid expenses | |
| 9 | ||
| Basis difference in investment in |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 75–76)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, Better Homes And Gardens Real Estate's parent company, Anywhere Real Estate Inc., had deferred income tax assets and liabilities. The deferred income tax assets include items such as net operating loss carryforwards, tax credit carryforwards, accrued liabilities and deferred income, interest expense limitation carryforward, operating leases, minimum pension obligations, provision for doubtful accounts, and liability for unrecognized tax benefits. The total deferred tax assets were $331 million in 2023, which decreased to $325 million in 2024. After deducting the valuation allowance, the total deferred income tax assets were $306 million in 2023, decreasing to $274 million in 2024.
Deferred income tax liabilities mainly consist of depreciation and amortization, operating leases, and basis difference in investment in joint ventures. The total deferred tax liabilities were $513 million in 2023, decreasing to $481 million in 2024. The net deferred income tax liabilities were $(207) million in both 2023 and 2024.
For a prospective Better Homes And Gardens Real Estate franchisee, understanding these figures is crucial as they reflect the overall financial health and tax strategies of the parent company. While these are not direct benefits to the franchisee, they indicate the financial stability and tax planning sophistication of the franchisor, which can indirectly impact the support and resources available to franchisees. It is important to note that these figures are consolidated for Anywhere Real Estate Inc. and not specific to Better Homes And Gardens Real Estate alone.