What was the reported total of other long-term liabilities for Carls, as of the date of the financial statements?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
| ASSETS | Carl's Jr. Restaurants LLC | Carl's Jr. Funding LLC | Carl's Jr. SPV Guarantor LLC | Hardee's Restaurants LLC | Hardee's Funding LLC | Hardee's SPV Guarantor LLC | Eliminations | The CKE Securitization Entities |
|---|---|---|---|---|---|---|---|---|
| Current assets: | ||||||||
| Cash and cash equivalents $ | 1,627 $ | 1,161 $ | — $ | 3,555 $ | 977 $ | — $ | — $ | 7,320 |
| Cash and cash equivalents - restricted | — | 16,053 | — | — | — | — | — | 16,053 |
| Accounts receivable, net | 10,663 | — | — | 10,036 | — | — | — | 20,699 |
| Due from affiliates | 6,860 | 20,696 | — | 52,060 | 215 | — | (79,292) | 539 |
| Inventories | 562 | — | — | 2,411 | — | — | — | 2,973 |
| Prepaid expenses | — | 16 | — | 137 | 20 | — | — | 173 |
| Other current assets | 83 | — | — | — | — | — | — | 83 |
| Total current assets | 19,795 | 37,926 | — | 68,199 | 1,212 | — | (79,292) | 47,840 |
| Property and equipment, net | 83,427 | — | — | 266,461 | — | — | — | 349,888 |
| Operating lease assets | 317,666 | — | — | 93,790 | — | — | — | 411,456 |
| Intangible assets, net | 384,915 | — | — | 408,115 | — | — | — | 793,030 |
| Other assets, net | 13,000 | — | — | 15,810 | — | — | — | 28,810 |
| Total assets $ | 818,803 $ | 37,926 $ | — $ | 852,375 $ | 1,212 $ | — $ | (79,292) $ | 1,631,024 |
| LIABILITIES AND MEMBERS' DEFICIT | ||||||||
| Current liabilities: | ||||||||
| Current portion of long-term debt $ | — $ | 5,900 $ | — $ | — $ | 5,900 $ | — $ | — $ | 11,800 |
| Current portion of finance leases | 627 | — | — | 641 | — | — | — | 1,268 |
| Current portion of operating leases | 59,930 | — | — | 16,312 | — | — | — | 76,242 |
| Accounts payable | 2,849 | — | — | 3,358 | — | — | — | 6,207 |
| Due to affiliates | (564) | 55,477 | — | 3,779 | 25,677 | — | (79,292) | 5,077 |
| Other current liabilities | 10,931 | 2,982 | — | 18,435 | 2,968 | — | — | 35,316 |
| Total current liabilities | 73,773 | 64,359 | — | 42,525 | 34,545 | — | (79,292) | 135,910 |
| Long-term debt, less current portion | — | 558,203 | — | — | 558,202 | — | — | 1,116,405 |
| Finance leases, less current portion | 5,269 | — | — | 9,159 | — | — | — | 14,428 |
| Operating leases, less current portion | 269,290 | — | — | 80,987 | — | — | — | 350,277 |
| Other long-term liabilities | 68,431 | (1) | — | 194,080 | — | — | — | 262,510 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 79–80)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, the consolidated balance sheet for The CKE Securitization Entities lists other long-term liabilities. As of January 31, 2023, the total for other long-term liabilities was $262,510.
This figure represents obligations that Carls has due beyond the coming year. These liabilities can include deferred compensation arrangements, pension liabilities, or other obligations not due within the next 12 months.
A prospective franchisee should consider the long-term liabilities of the company as an indicator of the financial health and stability of the franchisor. Significant long-term liabilities could indicate potential financial strain, which may impact the franchisor's ability to support its franchisees. It is important to investigate the nature of these liabilities to understand their potential impact.