What was the total income tax expense for Carls in fiscal year 2024?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
ith certain business acquisition transactions, an initial public offering or a change of control transaction. The management advisory and consulting services agreement includes customary exculpation and indemnification provisions in favor of Roark and its affiliates.
NOTE 20 — INCOME TAXES
Income tax expense consisted of the following:
| Fiscal 2024 | Fiscal 2023 | |
|---|---|---|
| Current: | ||
| Federal | $ 11,248 | $ 3,424 |
| State | 3,066 | 858 |
| Foreign | 5,926 | 4,866 |
| 20,240 | 9,148 | |
| Deferred: | ||
| Federal | (4,512) | ( |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 79–80)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, the total income tax expense for fiscal year 2024 was $16,502. The FDD also provides a breakdown of the factors contributing to this expense.
The reconciliation includes the income tax expense at the statutory rate, which was $12,942. Other factors include state income taxes net of federal income tax effect ($2,986), nondeductible share-based compensation ($446), general business credits (deduction of $640), nondeductible foreign losses ($230), uncertain tax positions ($591), intercompany interest (no amount listed), foreign derived intangible income deduction (deduction of $2,003), and other net adjustments ($1,950).
Prospective franchisees should understand how these various components can impact the overall tax liability of Carls. Reviewing these figures can provide insight into the tax strategies and financial health of the company. It's also worth noting that the total income tax expense for the previous fiscal year, 2023, was $8,865, indicating a significant increase in tax expenses for 2024.