How does Crowne Plaza recognize interest and penalties related to income taxes in its financial statements?

According to the 2025 Crowne Plaza FDD, the company has not recorded any interest or penalties related to uncertain tax positions for the three years ending December 31, 2024. This means that in its financial statements, Crowne Plaza has not recognized any expenses or liabilities related to potential interest or penalties that could arise from disagreements with tax authorities.

This could be interpreted in a few ways. It may indicate that Crowne Plaza has been diligent in its tax filings and has not faced significant challenges or disputes with tax authorities that would lead to interest and penalties. Alternatively, it could suggest that Crowne Plaza has taken a conservative approach in estimating and reserving for uncertain tax positions, such that any potential interest and penalties are already factored into the overall reserve for those uncertain positions.

For a prospective franchisee, this information provides some insight into Crowne Plaza's financial practices and its relationship with tax authorities. While the absence of recorded interest and penalties is generally a positive sign, it is important to consider this information in the context of the company's overall tax strategy and risk management practices. A potential franchisee might want to inquire further about Crowne Plaza's approach to uncertain tax positions and how it assesses and manages the risk of potential interest and penalties.