What was the total gross deferred tax assets for Jack In The Box in 2023?
Jack_In_The_Box Franchise · 2025 FDDAnswer from 2025 FDD Document
.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 | $ 381,522 | $ 372,095 |
| Accrued defined benefit pension and postretirement benefits | 22,074 | 18,896 |
| Deferred income | 15,465 | 15,137 |
| Accrued legal settlements | 4,764 | 11,099 |
| Accrued insurance | 7,135 | 8,086 |
| Share-based compensation | 6,814 | 6,139 |
| Accrued incentive compensation | 2,692 | 5,928 |
| Capitalized research costs | 1,443 | 1,943 |
| Tax loss and tax credit carryforwards | 387 | 1,956 |
| Accrued compensation expense | 1,254 | 1,259 |
| Other reserves and allowances | 1,241 | 1,144 |
| Property and equipment, net of imp |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 93–94)
What This Means (2025 FDD)
According to Jack In The Box's 2025 Franchise Disclosure Document, the total gross deferred tax assets for 2023 was $447,715. Deferred tax assets arise from temporary differences between the book value of assets and liabilities and their tax bases, which will result in deductible amounts in future years. These assets are listed on the balance sheet and can be used to reduce future taxable income, thereby lowering tax liabilities.
The components contributing to the total gross deferred tax assets include items such as operating and finance lease liabilities, accrued defined benefit pension and postretirement benefits, deferred income, accrued legal settlements, and other reserves and allowances. These specific items reflect the various obligations and accruals that Jack In The Box has recorded for accounting purposes but have not yet been recognized for tax purposes.
Prospective franchisees should understand that deferred tax assets are subject to valuation allowances. These allowances are established if it is more likely than not that some portion of the deferred tax assets will not be realized. In 2023, Jack In The Box had a valuation allowance of $1,043, which reduced the total net deferred tax assets to $446,672. Monitoring these figures can provide insights into the company's financial health and its expectations regarding future profitability and tax liabilities.