What was the total operating lease cost for Carls in fiscal year 2022?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
to CKE Inc | | | | | | (105,000) | | (105,000) | | | Capital contributions from CKE Inc | | | | 41 ,500 | | | | 41 ,500 | | | Net Income | | | | | | 24,739 | | 24,739 | | | Balance as of January 31 | 100 | | | 733,537 | (441 ,866) | (125,600) | (885) | 165,186 | | | , 2022 | | | | | | | | | | | Share-based compensation | | | | 777 | | | | 777 | | | Other comprehensive loss | | | | | | | (250) | (250) | | | CKE Inc. merger with CKE Restaurants | | | | | 441 ,866 | (441 ,866) | | | | | Holdings, Inc | | | | | | | | | | | Net income | | | | | | 27,760 | | 27,760 | | | Cumulative effect of change in | | | | | | (571) | | (571) | | | accounting principle (Note 9) | | | | | | | | | | | Balance as of January 31 | 100 | $ | | $734,314 | $ | $~540,2771 | $ | ~1 ,1351 $192,902 | | | , 2023 | | | | | | | | | |
CKE RESTAURANTS HOLDINGS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands)
| Fiscal 202 | 3 | Fi | scal 2022 | |
|---|---|---|---|---|
| Cash flows from operating activities: | ||||
| Net income | $ 27, | 760 | $ | 24,739 |
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||
| Depreciation and amortization | 49, | 46,653 | ||
| Amortization of deferred financing costs | 3, | 352 | 3,092 | |
| Share-based compensation | 777 | 855 | ||
| Gain on early termination of lease agreement associated with a financing method sale-leaseback restaurant property | (1, | 285) | (262) | |
| Loss (gain) on disposal of other property and equipment | 512 | (6,486) | ||
| Deferred income taxes | 178) | (371) | ||
| Provision for losses on impairments, accounts receivable and other items |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 79–80)
What This Means (2024 FDD)
Based on the 2024 Franchise Disclosure Document, there is no explicit figure for the total operating lease cost for Carls in fiscal year 2022 within the provided financial statements. However, the document does include a table that shows cash flow from operating activities for fiscal year 2022.
Specifically, the table includes a line item for "Operating lease asset and liabilities, net" which shows a value of $4,000 for fiscal year 2022. This figure represents the net change in operating lease assets and liabilities, not the total operating lease cost.
To determine the total operating lease cost for fiscal year 2022, a prospective franchisee should ask Carls for a complete breakdown of operating lease expenses for that year. This information is essential for understanding the overall financial obligations associated with leasing properties and equipment.