What was the reported valuation allowance for Crowne Plaza in 2023?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
e taxing authorities for years 2019 through 2023.
The Company accounts for taxes on Global Intangible Low-Taxed Income ("GILTI") as period costs within provision for income taxes on the consolidated statements of net income.
Deferred income taxes reflect the net tax effects of temporary differences between the car
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to Crowne Plaza's 2025 Franchise Disclosure Document, the valuation allowance in 2023 was reported as ($18,375) in thousands. This means that Crowne Plaza had a valuation allowance of $18,375,000 in 2023.
A valuation allowance is a contra-asset account used to reduce the value of deferred tax assets when it is more likely than not that some portion or all of the deferred tax assets will not be realized. This can occur due to various factors, such as a history of losses or expectations of future losses. The valuation allowance reflects an accounting estimate of the amount of deferred tax assets that may not be recoverable.
For a prospective Crowne Plaza franchisee, this information provides insight into the brand's financial accounting practices related to deferred tax assets. While not directly impacting day-to-day operations, it reflects the company's assessment of its ability to utilize tax benefits in the future. Understanding these accounting details can contribute to a more comprehensive view of the franchisor's financial health and risk profile.