What was the total gross deferred tax assets for Del Taco in 2023?
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 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 58)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, the total gross deferred tax assets for 2023 was $447,715. This figure represents the sum of various deferred tax assets, including those related to operating and finance lease liabilities, accrued defined benefit pension and postretirement benefits, deferred income, accrued legal settlements, accrued insurance, share-based compensation, accrued incentive compensation, capitalized research costs, tax loss and tax credit carryforwards, accrued compensation expense, other reserves and allowances, property and equipment net of impairment, and other net assets.
Deferred tax assets arise when there are temporary differences between the book value of an asset or liability and its tax basis. These differences result in future taxable income or deductions. For example, if Del Taco has a lease liability, the difference between the amount recorded on the balance sheet and the amount deductible for tax purposes creates a deferred tax asset. These assets are expected to reduce Del Taco's future tax obligations as the temporary differences reverse over time.
For a prospective franchisee, understanding deferred tax assets is crucial for assessing the overall financial health and tax planning strategies of Del Taco. A higher value of deferred tax assets can indicate potential future tax benefits, which could positively impact the company's profitability and cash flow. However, it's also important to consider any valuation allowances against these assets, as these allowances reflect the company's assessment of the likelihood that the deferred tax assets will be realized.
It is important to note that while the total gross deferred tax assets for 2023 is provided, the FDD also lists a valuation allowance of ($1,043). This valuation allowance reduces the total gross deferred tax assets to arrive at the total net deferred tax assets, which was $446,672 in 2023. Franchisees should be aware of both the gross and net figures when evaluating the company's financial position.