What was the reported value of Hardees' income taxes payable as of January 31, 2025?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | |||
|---|---|---|---|
| Deferred income tax assets: | |||
| Operating lease liabilities | $ 107,272 | $ 115,1 | 175 |
| Financing method sale-leaseback obligations | 27,325 | 32,2 | 229 |
| Interest limitation carryforward | 18,511 | 13,3 | 345 |
| Reserves and allowances | 9,049 | 5,5 | 546 |
| Franchise fees | 7,767 | 7,8 | 303 |
| Net operating loss carryforwards | 290 | 4,7 | 749 |
| Federal and state tax credits | 129 | 4,5 | 536 |
| Valuation allowance | (204 | (8,7 | 747) |
| Total deferred income tax assets | 170,139 | 174,6 | 536 |
| Deferred income tax liabilities: | |||
| Goodwill and other intangible assets | (193,715 | (198,3 | 306) |
| Operating lease assets | (101,711 | (110,0 | 061) |
| Basis difference in property and equipment | (22,829 | ( |
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, as of January 31, 2025, the income tax payable to their corporate parent was $13,459. This figure represents the amount Hardees owed to its corporate parent, CKE Holding Corporation, for income taxes.
Hardees operates as part of a consolidated group for federal income tax purposes, along with its parent company, CKE Holding Corporation. However, for financial reporting, Hardees calculates its income tax provision as if it were a separate entity. This means Hardees determines its taxable income and resulting tax liability independently.
As a result of this separate calculation, Hardees makes income tax payments to its corporate parent based on its taxable income. In addition to these payments to the parent company, Hardees also makes direct income tax payments to federal, state, local, and foreign taxing jurisdictions. During fiscal year 2025, Hardees did not make any income tax payments to CKE Holding Corporation but made $17,342 in income tax payments net of refunds directly to taxing authorities.
Prospective franchisees should understand that Hardees' tax structure involves payments to both its parent company and direct payments to various tax authorities. The income tax payable to the corporate parent represents an internal allocation of tax liabilities within the CKE Holding Corporation group.