What was the current income tax expense for Chem Dry in 2023?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
operating leases | |
December 31, 2023, 2022, and 2021 (000s omitted)
Note 10 - Leases (Continued)
The Company subleases certain facilities. As of December 31, 2023, there are no sublease rentals to be received in future periods. Rental income under the sublease was $385, $268, and $269 for the years ended December 31, 2023
Source: Item 23 — Receipts (FDD pages 68–264)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, the current income tax expense for 2023 was $212. This figure reflects the amount of income tax due for the year, before considering deferred tax items. It is important to note that this expense is attributable to continuing operations.
In addition to the current income tax expense, Chem Dry also reported a deferred income tax expense of $265 in 2023. Deferred income taxes arise from temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements. The total income tax expense for Chem Dry in 2023, which includes both current and deferred components, was $477.
Prospective franchisees should understand how income taxes can impact the overall profitability of Chem Dry. Reviewing the company's financial statements and understanding the components of income tax expense can provide valuable insights into the company's financial performance. It's also worth noting that the 2022 figures have been restated, suggesting potential adjustments or corrections to previously reported financial data.