What was the total liability at fair value for Del Taco as of September 29, 2024?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
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Financial assets and liabilities — The following table presents our financial assets and liabilities measured at fair value on a recurring basis (in thousands):
| Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||
|---|---|---|---|---|---|---|
| Fair value measurements as of January 19, 2025: | ||||||
| Non-qualified deferred compensation plan (1) | $ 19,405 | $ | 19,405 | $ | — | $ — |
| Total liabilities at fair value | $ 19,405 | $ |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 58)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, the total liabilities at fair value as of September 29, 2024, was $18,481,000. This amount is attributed to the non-qualified deferred compensation plan. The fair value measurement is categorized as Level 1, which means it is based on quoted prices in active markets for identical assets.
For a prospective Del Taco franchisee, understanding the liabilities at fair value provides insight into the financial obligations of the company. In this case, the liability is related to a deferred compensation plan, which is a common benefit offered to employees and directors. The fact that the fair value is determined using Level 1 inputs suggests a high degree of reliability and transparency in the valuation.
It's important to note that this liability represents the fair value of obligations related to the deferred compensation plan as of a specific date. The actual amount and timing of payments under the plan may vary depending on the terms of the plan and the participants' elections. A potential franchisee should consider this information in the context of the overall financial health and stability of Del Taco.