What was the total gross deferred tax assets for Burger King as of December 31, 2024?
Burger_King Franchise · 2025 FDDAnswer from 2025 FDD Document
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Income tax (benefit) expense allocated to continuing operations and amounts separately allocated to other items was (in millions):
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Income tax expense (benefit) from continuing operations | $ 364 | $ (265) $ | (117) |
| Cash flow hedge in accumulated other comprehensive income (loss) | 2 | (14) | 153 |
| Net investment hedge in accumulated other comprehensive income (loss) | (16) | 22 | 77 |
| Foreign Currency Translation in accumulated other comprehensive income (loss) | — | 1 | — |
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Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 109–124)
What This Means (2025 FDD)
According to Burger King's 2025 Franchise Disclosure Document, the company's total gross deferred tax assets as of December 31, 2024, amounted to $3,363. This figure represents the sum of various deferred tax assets, including accounts and notes receivable, accrued employee benefits, leases, operating lease liabilities, liabilities not currently deductible for tax, tax loss and credit carryforwards, and intangible assets.
Deferred tax assets arise when there are differences between the accounting treatment and the tax treatment of certain items, leading to a future tax benefit. For example, if Burger King has incurred expenses that are deductible for accounting purposes now but will only be deductible for tax purposes in a later period, this creates a deferred tax asset. Similarly, tax loss carryforwards, which represent past losses that can be used to reduce future taxable income, also contribute to deferred tax assets.
The valuation allowance of ($1,588) reflects an estimate of the portion of deferred tax assets that are not expected to be realized in the future. This is a contra-asset account that reduces the total gross deferred tax assets to arrive at the net deferred tax assets of $1,775. These figures provide insight into Burger King's financial position and its expectations regarding future tax benefits.