What was the total gross deferred tax liabilities 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 | 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 total gross deferred tax liabilities for 2023 were $(472,901). This figure represents the cumulative amount of tax obligations that Del Taco has deferred to future periods. These liabilities arise from temporary differences between the book value of assets and liabilities and their tax bases. Common sources include differences in depreciation methods, accrued expenses, and deferred revenue.
For a prospective Del Taco franchisee, understanding deferred tax liabilities is crucial for assessing the overall financial health and stability of the company. While deferred tax liabilities are not immediately payable, they represent future cash outflows for taxes. A significant increase in deferred tax liabilities could indicate that Del Taco is utilizing tax strategies that may have future implications.
The major components contributing to the total gross deferred tax liabilities include operating and finance lease ROU assets, which amounted to $(380,040), intangible assets totaling $(84,969), investment basis limitations of $(6,191), and other liabilities of $(1,701). These figures provide insight into the specific areas where Del Taco has deferred tax obligations. Reviewing these components can help a franchisee understand the underlying factors driving the company's tax position and potential future tax obligations.