What was the provision (benefit) for income taxes for Caption By Hyatt in 2022?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
| $ (41) $ (9) | | (62) $ (4) | | (184) (77) | | | Foreign | (73) | | (59) | | 2 | | | Total deferred | $ (123) $ | | (125) $ | | (259) | | | Provision (benefit) for income taxes | $ 267 | $ | 90 | $ | (92) | | | | | | | | | | The following is a reconciliation of the statutory federal income tax rate to the effective tax rate:
| Year Ended December 31, | ||||||
|---|---|---|---|---|---|---|
| 2024 | 2023 | 2022 | ||||
| Statutory U.S. federal income tax rate | 21.0 % | 21.0 % | 21.0 % | |||
| State income taxes—net of federal tax benefit | 2.1 | 4.2 | 5.2 | |||
| Impact of foreign operations (1) | 2.0 | 15.3 | 6.6 | |||
| Impact of foreign transactions | (7.0) | — | — | |||
| Foreign asset restructuring | — | (15.3) | — | |||
| Change in valuation allowances | (3.1) | (7.7) | (58.6) | |||
| Tax contingencies | 2.0 | 9.4 | 6.2 | |||
| U.S. foreign tax credits valuation allowance | — | — | (4.7) | |||
| Other | 0.1 | 2.0 | (0.9) | |||
| Effective income tax rate | 17.1 % | 28.9 % | (25.2) % |
(1) Excludes unconsolidated hospitality ventures losses.
During the year ended December 31, 2024, significant items affecting the effective tax rate included the benefit of gains on the sale of the shares of the entities that own Hyatt Regency Aruba Resort Spa and Casino and the UVC Transaction that carry a low effective tax rate and a non-cash tax benefit as a result of the release of a valuation allowance on certain foreign deferred tax assets. These benefits were partially offset by the impact of foreign operations, tax contingencies, and state income taxes.
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
According to Caption By Hyatt's 2025 Franchise Disclosure Document, the effective income tax rate in 2022 was impacted by several factors. A significant item was a $250 million noncash benefit resulting from the release of a valuation allowance on U.S. federal and state deferred tax assets and U.S. foreign tax credit carryforwards. This benefit was partially offset by the impact of tax contingencies and foreign operations.
In 2022, Caption By Hyatt also reported the following breakdown of income taxes: $100 million in federal income taxes, $10 million in state income taxes, and $57 million in foreign income taxes.
The effective income tax rate for Caption By Hyatt in 2022 was (25.2)%.