What was the total amount of Hardees' deferred income tax assets at January 31, 2023?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
federal, state, local and foreign taxing jurisdictions. As of January 31, 2024 and 2023, our income tax payable to our corporate parent was $13,269 and $13,318, respectively. During fiscal 2024 and 2023, we did not make any income tax payments to CKE Holding Corporation and made $15,426 and $11,325 in income tax payments net of refunds directly to taxing authorities.
As of January 31, 2024 and 2023, we maintained a valuation allowance of $8,747 and $9,405, respectively, for a portion of our state income tax credits and certain state and foreign net operating loss NOL carryforwards because we had concluded that realization of the tax benefit of such deferred income tax assets was not more likely than not. In evaluating the need for a valuation allowance, we consider all available evidence, positive and negative, including cumulative historical earnings in recent years, future reversals of existing temporary differences, estimated future taxable income exclusive of
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
Based on Hardees' 2025 Franchise Disclosure Document, the provided financial statements do not explicitly list the total amount of deferred income tax assets as a single line item for January 31, 2023. The balance sheet does include a line for "Deferred income tax liabilities, net," but this represents the net liability, not the gross asset value.
However, the FDD does provide some information regarding deferred income tax assets related to state net operating loss (NOL) carryforwards. As of January 31, 2024, Hardees had $125 of net deferred income tax assets related to state NOL carryforwards. These assets represent the expected future tax savings from such carryforwards, considering the impact of past ownership changes on the ability to utilize them. The utilization of NOL carryforwards to offset future taxable income may be subject to annual limitations due to past or future ownership changes.
To determine the total deferred income tax assets for Hardees as of January 31, 2023, a prospective franchisee should request a detailed breakdown from the franchisor. This breakdown should include all components of deferred tax assets, such as those related to NOL carryforwards, tax credit carryforwards, and other temporary differences between financial reporting and tax accounting. Understanding the nature and recoverability of these assets is crucial for assessing the company's financial health and future tax obligations.