What was the income tax provision for Bw Premier Collection in 2023, in thousands of dollars?
Bw_Premier_Collection Franchise · 2025 FDDAnswer from 2025 FDD Document
| income tax provision: | ||||
|---|---|---|---|---|
| 2023 | 2022 | |||
| (in thousands) | $ % | $ | % | |
| Income taxes computed at statutory rates | $ 24,478 21.0% | $ 22,042 | 21.0% | |
| State taxes, net of federal benefit | 4,445 3.8% | 3,364 | 3.2% | |
| Non-deductible meals and entertainment | 775 0.7% | 236 | 0.2% | |
| Other non-deductible items | 272 0.2% | 276 | 0.3% | |
| Valuation allowance | 150 0.1% | 912 | 0.9% | |
| Foreign-derived intangible income | (1,214) (1.0%) | (819) | (0.8%) | |
| Research and development and foreign tax credit | (1,041) (0.9%) | (7,802) | (7.4%) | |
| Other | (367) (0.3%) | (1,040) | (1.0%) | |
| Income tax provision | $ 27,498 23.6% | $ 17,169 | 16.4% |
Source: Item 23 — Receipts (FDD pages 54–203)
What This Means (2025 FDD)
According to Bw Premier Collection's 2025 Franchise Disclosure Document, the income tax provision for the year 2023 was $27,498,000 (in thousands). This figure represents 23.6% of the company's revenues.
The income tax provision is broken down into several components. Income taxes computed at statutory rates totaled $24,478,000, representing 21.0%. State taxes, net of federal benefit, amounted to $4,445,000 or 3.8%. Non-deductible meals and entertainment accounted for $775,000 (0.7%), while other non-deductible items totaled $272,000 (0.2%). A valuation allowance of $150,000 made up 0.1% of the provision.
Several items reduced the income tax provision. Foreign-derived intangible income resulted in a reduction of $1,214,000 (-1.0%), and research and development and foreign tax credits reduced it by $1,041,000 (-0.9%). Other factors further decreased the provision by $367,000 (-0.3%).
Understanding the components of the income tax provision can give a prospective Bw Premier Collection franchisee insight into the various factors influencing the company's tax obligations and overall financial performance. Reviewing these figures in comparison to previous years can also reveal trends and potential areas of concern or opportunity.