What were the deferred income taxes for Del Taco in 2024?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
,111 | 28.5 % |
The tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities at each fiscal year-end are presented below (in thousands):
| 2024 | 2023 | ||
|---|---|---|---|
| Deferred tax assets: | |||
| Operating and finance lease liabilities | $ 381,52 | 22 | $ 372,095 |
| Accrued defined benefit pension and postretirement benefits | 22,0 | 74 | 18,896 |
| Deferred income | 15,4 | 65 | 15,137 |
| Accrued legal settlements | 4,7 | 64 | 11,099 |
| Accrued insurance | 35 | 8,086 | |
| Share-based compensation | 6,8 | 14 | 6,139 |
| Accrued incentive compensation | 2,69 | 92 | 5,928 |
| Capitalized research costs | 1,4 | 43 | 1,943 |
| Tax loss and tax credit carryforwards | 3 | 87 | 1,956 |
| Accrued compensation expense | 1,2: | 54 | 1,259 |
| Other reserves and allowances | 1,24 | 41 | 1,144 |
| Property and equipment, net of impairment | 5,8 | 47 | 181 |
| Other, net | 4,20 | 01 | 3,852 |
| Total gross deferred tax assets | 454,83 | 39 | 447,715 |
| Valuation allowance | - | (1,043) | |
| Total net deferred tax assets | 454,83 | 39 | 446,672 |
| Deferred tax liabilities: | |||
| Operating and finance lease ROU assets | (378,5 | 31) | (380,040) |
| Intangible assets | (88,3 | 78) | (84,969) |
| I |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 58)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, the net deferred tax liabilities for Del Taco in 2024 were approximately $13.6 million. This figure represents the difference between the total gross deferred tax assets of $454.83 million and the total gross deferred tax liabilities of $468.451 million. These deferred tax figures arise from various sources, including lease liabilities and assets, pension benefits, deferred income, legal settlements, share-based compensation, and property and equipment.
Deferred tax assets represent future tax benefits that Del Taco expects to realize, typically resulting from deductible temporary differences or carryforwards. Deferred tax liabilities, on the other hand, represent future tax obligations arising from taxable temporary differences. The net deferred tax liability indicates that Del Taco has more future tax obligations than benefits at the time of this financial statement.
For a prospective franchisee, understanding these deferred tax implications is crucial as they reflect the overall financial health and tax planning strategies of Del Taco. While franchisees are not directly impacted by these specific corporate-level deferred taxes, they should be aware of how the parent company manages its tax obligations, as this can affect the long-term stability and financial decisions of the franchise system. Reviewing these figures in the context of Del Taco's overall financial statements can provide a more comprehensive understanding of the company's financial position.