What was the amount of depreciation and amortization for Carls in fiscal year 2024?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
PROPERTY AND EQUIPMENT, NET**
Property and equipment, net, consisted of the following as of January 31, 2024 and 2023:
| | Estimated Useful Life | 2024 | 2023 | |-------------------------------------------------------|--------------------------|---------------|---------------| | Land | | $ 192,390 | $ 195,288 | | | | | | | Leasehold improvements | 3-25 years | 105,359 | 103,637 | | Buildings and improvements | 3-40 years | 191,141 | 190,542 | | Equipment, furniture and fixtures | 3-8 years | 140,630 | 115,486 | | Finance leases | 5-33 years | 18,174 647,694 | 9,264 614,217 | | Less accumulated depreciation and amortization(1) | | (270,258) | (242,645) | | | | | | | Total property and equipment, net | | $ 377,436 | $ 371,572 | (1) The accumulated amortization related to finance leases was $333 and $1,375 as of January 31, 2024 and 2023, respectively.
Depreciation and amortization expense related to property and equipment for fiscal 2024 and 2023 was $36,202 and $35,375, respectively. Amortization of property under finance leases is included within depreciation and amortization expense.
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 79–80)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, there are two different values for depreciation and amortization expenses related to fiscal year 2024. One excerpt states that depreciation and amortization expense related to property and equipment for fiscal 2024 was $36,202. Another excerpt from the cash flow statement indicates that the depreciation and amortization was $46,692 for fiscal year 2024.
It is important to note that these figures may represent different aspects of Carls's overall financial reporting. The $36,202 figure may be specific to property and equipment, while the $46,692 figure could represent a more comprehensive value that includes other amortized assets.
A prospective franchisee should seek clarification from Carls regarding these discrepancies to fully understand the company's accounting practices and financial performance. Understanding the components of depreciation and amortization is crucial for assessing the profitability and long-term value of a Carls franchise.