What was the total share-based compensation expense for Carls in fiscal year 2022?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
| Fis | cal 2023 | Fig | scal 2022 | |
|---|---|---|---|---|
| Adjustments to estimated liability for closed restaurants | $ | _ | $ | 2,312 |
| Impairment of assets to be disposed of | 3,657 | 2,337 | ||
| Impairment of assets to be held and used | 444 | 221 | ||
| Loss (gain) on disposal of other property and equipment | 512 | (6,486) | ||
| Gain on early termination of lease agreement associated with a financing method sale- | (1,160) | (262) | ||
| leaseback restaurant property (see Note 10) | ||||
| Other losses, net | 1,349 | 3 | ||
| Total facility action charges, net | $ | 4,802 | $ | (1,875) |
Impairment charges recorded against property and equipment and operating lease assets of $4,101 and $2,558 were recognized in facility action charges, net in fiscal 2023 and 2022, respectively.
The following table summarizes the activity in our estimated liability for closed restaurants for fiscal year 2022. With the adoption of ASC 842
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 79–80)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, the total share-based compensation expense for fiscal year 2022 was $855. This figure represents the combined expenses related to profit-sharing interests with performance conditions and all other profit-sharing interests.
Share-based compensation is a common practice where Carls issues equity-based awards to its executive management team, certain key employees, and directors under its equity-based compensation plans. The expense is recognized over the period the employee provides service. These awards are measured at fair value on the grant date.
For prospective franchisees, this information provides insight into Carls's financial management and how it compensates its employees and executives. While it doesn't directly impact the operation of a franchised unit, it offers a view into the overall financial health and compensation strategies of the company. Understanding these aspects can help franchisees assess the stability and long-term vision of the Carls organization.