What was the statutory U.S. federal income tax rate for Caption By Hyatt in 2024?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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) % |
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 statutory U.S. federal income tax rate for the company was 21.0% in 2024. The FDD also provides the statutory U.S. federal income tax rates for 2023 and 2022, which were also 21.0%.
In addition to the federal income tax rate, the document lists other factors impacting the effective income tax rate for Caption By Hyatt. These include state income taxes (net of federal tax benefit), the impact of foreign operations and transactions, foreign asset restructuring, changes in valuation allowances, tax contingencies, and U.S. foreign tax credits valuation allowance. These items can significantly increase or decrease the overall effective tax rate paid by the company.
For example, in 2024, state income taxes added 2.1% to the tax rate, while the impact of foreign transactions decreased it by 7.0%. Changes in valuation allowances reduced the rate by 3.1%. These various factors resulted in an effective income tax rate of 17.1% for Caption By Hyatt in 2024, which is lower than the statutory federal rate of 21.0%. A prospective franchisee should recognize that these rates reflect Caption By Hyatt's corporate tax situation and may not reflect the tax obligations of individual franchisees.