What was the provision for deferred 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 |
Source: Item 23 — Receipts (FDD pages 54–203)
What This Means (2025 FDD)
According to Bw Premier Collection's 2025 Franchise Disclosure Document, the provision for deferred income taxes for the year 2024 was $2,167,000. This figure is part of the adjustments made to reconcile the excess of revenues over expenses to the net cash provided by operating activities. It reflects the changes in deferred tax assets and liabilities, which arise from temporary differences between the book value of assets and liabilities and their tax bases.
Deferred income taxes can significantly impact a company's financial statements. A provision for deferred income taxes indicates that Bw Premier Collection recognized future tax obligations or benefits during the reported period. These deferred taxes arise because of differences in how certain items are treated for accounting and tax purposes. For instance, depreciation methods may differ, leading to temporary differences that reverse over time.
For a prospective franchisee, understanding these figures is crucial as they reflect the financial management and tax strategies of Bw Premier Collection. While deferred tax provisions don't represent immediate cash outlays, they can affect future tax liabilities and, consequently, the overall profitability of the company. Franchisees should consider these factors when evaluating the financial health and stability of Bw Premier Collection.
It is also important to note that the FDD includes additional information regarding deferred tax assets and liabilities as of November 30, 2024, and 2023, providing a more detailed breakdown of the components that make up these deferred tax figures. Reviewing these components can offer further insights into the nature and potential impact of deferred taxes on Bw Premier Collection's financial performance.