What was the total amount of Cinnabon's net deferred tax liabilities as of December 31, 2023?

According to Cinnabon's 2025 Franchise Disclosure Document, the company's total net deferred tax liabilities as of December 31, 2023, were $(74,271). This figure represents the net amount of deferred tax liabilities after considering both deferred tax liabilities and deferred tax assets. Deferred tax liabilities arise from temporary differences between the book value of assets and liabilities and their tax bases, resulting in taxable amounts in future years. Deferred tax assets, on the other hand, arise from temporary differences that create deductible amounts in the future. The valuation allowance is subtracted from the total deferred tax assets. The company had a valuation allowance of $(1) as of December 31, 2023.

For a prospective Cinnabon franchisee, understanding deferred tax liabilities is crucial because it reflects the company's future tax obligations. While deferred tax liabilities are not an immediate cash outflow, they represent potential future tax payments that could impact Cinnabon's profitability and, consequently, the financial health of its franchisees. Franchisees should be aware of how these liabilities are managed, as significant changes in tax laws or the company's financial performance could affect these deferred tax positions.

It's important to note that deferred tax liabilities are a common element in financial statements and arise from various accounting practices. In Cinnabon's case, these liabilities are primarily related to intangible assets, operating lease assets, and depreciable assets. Monitoring these deferred tax positions can provide insights into the company's financial strategy and potential tax-related risks. Franchisees may want to discuss with Cinnabon the factors that influence these deferred tax liabilities and how they are being managed to minimize potential impacts on the company's financial performance.