What was the total fair value of Del Taco's assets as of September 30, 2024?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
f the month-end date closest to its fiscal year end, which is a practical expedient under FASB authoritative guidance. The fair values of the Qualified Plan's assets by asset category are as follows (in thousands):
| ( | Other i.e., NAV Assets) | i M | oted Prices n Active arkets for dentical | Significant Other Observable Inputs | Uno | gnificant bservable Inputs | |||
|---|---|---|---|---|---|---|---|---|---|
| Total | (3) | Level 1) | (Level 2) | Level 3) | |||||
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 58)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, the fair value of certain assets was determined as of September 30, 2024. Specifically, cash and cash equivalents were valued at $2,933,000 and global equity was valued at $40,193,000. These values are categorized based on fair value hierarchy levels, with cash and cash equivalents classified as Level 2 assets, using significant other observable inputs, and global equity categorized as 'Other i.e., NAV Assets'.
These figures reflect the fair value of specific asset types held by Del Taco as of the noted date. Fair value is an estimate of the market value of an asset, and the categorization into different levels (Level 1, Level 2, Level 3) indicates the reliability and transparency of the inputs used to determine that value. Level 2 assets rely on observable market data, while Level 3 assets involve unobservable inputs, which require more judgment and estimation.
For a prospective franchisee, understanding these fair value assessments can provide insight into the financial health and asset valuation practices of Del Taco. It's important to note that these figures represent only specific assets and not the total assets of the company. A comprehensive understanding would require reviewing the full financial statements and understanding the context of these valuations within the broader financial picture of Del Taco.