What was the total amount of unrecognized tax benefits for Caption By Hyatt as of January 1, 2023?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
ty program discussed below could significantly change within the next 12 months, at this time, we are not able to estimate the range by which the reasonably possible outcomes of the pending litigation could impact our uncertain tax benefits within the next 12 months.
A reconciliation of unrecognized tax benefits is as follows:
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Unrecognized tax benefits—January 1 | $ 301 | $ 253 |
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 total amount of unrecognized tax benefits as of January 1, 2023, was $253 million. This figure represents the starting point for unrecognized tax benefits at the beginning of the 2023 fiscal year.
Throughout 2023, there were increases and decreases affecting the unrecognized tax benefits. These included a total increase of $54 million from current-period tax positions, a total decrease of $3 million from prior-period tax positions, a decrease of $9 million due to the lapse of the statute of limitations, and an increase of $6 million from foreign currency translation adjustments. These adjustments led to an ending balance of $301 million in unrecognized tax benefits as of December 31, 2023.
For a prospective Caption By Hyatt franchisee, understanding these figures is crucial because they reflect the company's approach to tax management and potential tax-related liabilities. Unrecognized tax benefits can arise from uncertainties in tax positions taken by the company, and while they are not immediately recognized, they represent potential future tax obligations. Monitoring these figures can provide insight into the financial risks and stability of the franchise system.