What was the total value of Bw Premier Collection's deferred tax assets in 2022 (in thousands)?
Bw_Premier_Collection Franchise · 2025 FDDAnswer from 2025 FDD Document
| (in thousands) | 2023 | 2022 |
|---|---|---|
| Deferred tax assets: | ||
| Loyalty program | $ 32,756 | $ 33,375 |
| Deferred revenue | 9,492 | 10,017 |
| Deferred compensation plans | 4,977 | 5,766 |
| Allowance for doubtful accounts | 4,053 | 4,286 |
| Net operating loss | 3,521 | 3,367 |
| Capitalized R&D expenses | 3,436 | - |
| Compensated absences | 1,779 | 1,519 |
| Acquisition of new trademarks and trade names | 626 | 690 |
| Tax credits | 572 | 572 |
| Travel Card liability | 506 | 646 |
| Free night voucher liability | 198 | 333 |
| Total deferred tax assets | 61,916 | 60,571 |
Source: Item 23 — Receipts (FDD pages 54–203)
What This Means (2025 FDD)
According to Bw Premier Collection's 2025 Franchise Disclosure Document, the total value of their deferred tax assets in 2022 was $60,571,000. This figure represents the sum of various deferred tax assets, including those related to the loyalty program ($33,375,000), deferred revenue ($10,017,000), deferred compensation plans ($5,766,000), allowance for doubtful accounts ($4,286,000), net operating loss ($3,367,000), compensated absences ($1,519,000), acquisition of new trademarks and trade names ($690,000), tax credits ($572,000), travel card liability ($646,000), and free night voucher liability ($333,000).
Deferred tax assets arise when there are temporary differences between the book value of an asset or liability and its tax basis. These differences result in taxable or deductible amounts in the future. For Bw Premier Collection, the largest component of deferred tax assets is related to their loyalty program, indicating a significant impact of this program on their deferred tax position.
Understanding deferred tax assets and liabilities is crucial for assessing a company's financial health. A net deferred tax asset position, as in the case of Bw Premier Collection, suggests that the company will have future tax benefits. Prospective franchisees should be aware of these figures as they reflect the financial strategies and tax planning of the company, which can indirectly affect the stability and resources available to support the franchise system.