What was the reported amortization of ROU assets for Del Taco in 2024?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
The unaudited pro forma financial information for all periods presented includes the business combination accounting effects resulting from this acquisition, mainly including adjustments to reflect additional amortization expense from acquired intangibles, incremental depreciation expense from the fair value property and equipment, elimination of historical interest expense associated with both Del Taco's and the Company's historical indebtedness, additional interest expense associated with the new Del Taco revolving credit facility and the Company's new borrowings as part of the refinancing to fund the acquisition, adjusted rent expense reflecting the acquired right-of-use assets and liabilities to their estimated acquisition-date values based upon valuation of related lease intangibles and remaining payments, as well as the fair value adjustments made to leasehold improvements, certain material non-recurring adjustments and the tax-related effects as though Del Taco was combined as of the beginning of fiscal 2021.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 58)
What This Means (2025 FDD)
Based on the 2025 Del Taco Franchise Disclosure Document, specific details regarding the amortization of Right-of-Use (ROU) assets for Del Taco in 2024 are not explicitly provided. While the document mentions adjustments to rent expense reflecting the acquired right-of-use assets and liabilities, it does not quantify the amortization expense related to these assets.
Item 21 includes financial statements and notes that discuss various financial aspects of Del Taco, such as goodwill impairment, debt, franchise acquisitions, and segment reporting. There is also mention of adjustments to rent expense reflecting the acquired right-of-use assets and liabilities to their estimated acquisition-date values based upon valuation of related lease intangibles and remaining payments. However, the specific amortization expense for ROU assets is not broken out.
To get precise figures for the ROU asset amortization, a prospective Del Taco franchisee should consider asking the franchisor directly for the specific amount of amortization expense recognized for ROU assets in 2024. This information would be helpful in understanding the overall financial performance and lease-related expenses of Del Taco.