In what years do the state loss carryforwards expire for Big O Tires?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
(A Joint Venture of Michelin North America, Inc. and Sumitomo Corporation of Americas) Notes to Consolidated Financial Statements March 31, 2025, 2024 and 2023**
(USO in thousands, unless otherwise noted)
The Company had $185,543 and $165,179 of gross state net operating loss carryforwards as of March 31, 2025 and 2024. The Company has determined that a valuation allowance of approximately $40,970 and $68,760 is necessary against the balance of gross state net operating loss carryforwards. State loss carryforwards expire in various years between 2032 through 2037, with certain net operating losses having an unlimited carryforward period. The Company had $28 and $28 of Canadian net operating loss carryforwards as of March 31, 2025 and 2024. These losses can be carried forward 20 years and will expire between 2029 and 2037.
The Company had $7, 193 and $6,972 of gros
Source: Item 23 — RECEIPTS (FDD pages 102–535)
What This Means (2025 FDD)
According to Big O Tires' 2025 Franchise Disclosure Document, the company had $185,543 and $165,179 of gross state net operating loss carryforwards as of March 31, 2025, and 2024, respectively. It was determined that a valuation allowance of approximately $40,970 and $68,760 is necessary against the balance of gross state net operating loss carryforwards.
For a Big O Tires franchisee, this means that the state loss carryforwards expire in various years between 2032 and 2037. Some net operating losses have an unlimited carryforward period.
Additionally, Big O Tires had $28 of Canadian net operating loss carryforwards as of March 31, 2025, and 2024. These losses can be carried forward 20 years and will expire between 2029 and 2037. The company also had $7,193 and $6,972 of gross federal tax credit carry forwards with valuation allowances of $5,960 and $5,468 as of March 31, 2025, and 2024. These credits can be carried forward up to 20 years and will expire between 2029 and 2038.