What were the changes in income taxes for Bw Premier Collection in 2024 (in thousands)?
Bw_Premier_Collection Franchise · 2025 FDDAnswer from 2025 FDD Document
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Consolidated Statements of Cash Flows
| (in thousands) | 2024 | Years Ended November 30, 2023 |
|---|---|---|
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||
| Excess of revenues over expenses | $ 65,117 | $ 89,020 |
| Adjustments to reconcile excess of revenues over | ||
| expenses to net cash provided by operating activities: | ||
| Depreciation and amortization | 20,774 | 18,162 |
| Provision for credit losses | 1,006 | 794 |
| Net (gains) on Restricted Rabbi Trust investments | (3,828) | (996) |
| Net losses on available-for-sale debt securities | 238 | 479 |
| Net (gains) on equity securities | (31,732) | (11,629) |
| Amortization of bond premiums/(discounts) on held-to-maturity debt securities, net | 16 | 79 |
| Amortization/(accretion) of premiums/(discounts) | ||
| on available-for-sale debt securities, net | (1,990) | (1,732) |
| Accrued interest on held-to-maturity debt securites, net | 30 | 66 |
| Accrued interest on available-for-sale debt securities, net | (77) | (6) |
| Provision for deferred income taxes | 2,167 | 2,999 |
| Loss on disposition of property, equipment and computer software | 13 | 27 |
| Changes in assets and liabilities: | ||
| Accounts receivable | (4,125) | 9,528 |
| Prepaid expenses and other current assets | (574) | (741) |
| Income taxes | (352) | (1,327) |
| Other assets, net | (640) | (735) |
| Accounts payable, accrued liabilities and deferred compensation plans liability | 3,938 | 5,239 |
| Deferred revenue | (202) | (2,089) |
| Frequent stay program liability | 15,426 | (1,094) |
| Deposits | (104) | (3,567) |
| NET CASH PROVIDED BY OPERATING ACTIVITIES | 65,101 | 102,477 |
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||
| Proceeds from maturity of held-to-maturity debt securities | 4,250 | 13,000 |
| Proceeds from maturity of available-for-sale debt securities | 5,281 | 4,118 |
| Proceeds from sale of available-for-sale debt securities | 64,396 | 41,029 |
| Proceeds from sale of equity securities | 15,865 | 9,722 |
| Purchase of available-for-sale debt securities | (104,222) | (149,432) |
| Purchase of equity securities | (26,664) | (80,164) |
| Development costs of hotel investments | (554) | (820) |
| Fund Restricted Rabbi Trust investments | (413) | (285) |
| Purchase of property, equipment and computer software | (20,742) | (17,683) |
| NET CASH USED IN INVESTING ACTIVITIES | (62,803) | (180,515) |
Continues on next page.
See accompanying notes to consolidated financial statements.
Source: Item 23 — Receipts (FDD pages 54–203)
What This Means (2025 FDD)
According to Bw Premier Collection's 2025 Franchise Disclosure Document, the changes in income taxes can be found within the cash flow statements. For the year 2024, income taxes decreased by $352,000, compared to a decrease of $1,327,000 in 2023.
Additionally, the income tax provision is detailed, showing income taxes computed at statutory rates were $24,478,000 (21.0%) in 2023 and $22,042,000 (21.0%) in 2022. State taxes, net of federal benefit, were $4,445,000 (3.8%) in 2023 and $3,364,000 (3.2%) in 2022. Non-deductible meals and entertainment amounted to $775,000 (0.7%) in 2023 and $236,000 (0.2%) in 2022. Other non-deductible items were $272,000 (0.2%) in 2023 and $276,000 (0.3%) in 2022.
Further adjustments include a valuation allowance of $150,000 (0.1%) in 2023 and $912,000 (0.9%) in 2022. Foreign-derived intangible income showed a reduction of $1,214,000 (-1.0%) in 2023 and $819,000 (-0.8%) in 2022. Research and development and foreign tax credit resulted in a reduction of $1,041,000 (-0.9%) in 2023 and $7,802,000 (-7.4%) in 2022. Other adjustments accounted for a reduction of $367,000 (-0.3%) in 2023 and $1,040,000 (-1.0%) in 2022. The total income tax provision was $27,498,000 (23.6%) in 2023 and $17,169,000 (16.4%) in 2022.
This detailed breakdown of income taxes and provisions offers prospective Bw Premier Collection franchisees insight into the tax-related financial activities of the company. Understanding these figures can help franchisees appreciate the complexities of the company's financial management and its impact on overall cash flow.