What was the total gross deferred tax liabilities for Jack In The Box in 2024?
Jack_In_The_Box Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | |
|---|---|---|
| Deferred tax liabilities: | ||
| Operating and finance lease ROU assets | (378,531) | (380,040) |
| Intangible assets | (88,378) | (84,969) |
| Investment basis limitation | _ | (6,191) |
| Other | (1,542) | (1,701) |
| Total gross deferred tax liabilities | (468,451) | (472,901) |
| Net deferred tax liabilities | $ (13,612) | $ (26,229) |
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 liabilities for 2024 were approximately $468.45 million. The FDD also provides a breakdown of the components contributing to this total. The operating and finance lease ROU (Right-of-Use) assets accounted for $378.531 million, while intangible assets contributed $88.378 million. Other liabilities accounted for $1.542 million.
Deferred tax liabilities arise from temporary differences between the book value of assets and liabilities and their tax bases. These differences result in taxable or deductible amounts in future years when the assets are recovered or the liabilities are settled. For a Jack In The Box franchisee, understanding these deferred tax implications is crucial for long-term financial planning and tax management.
Prospective franchisees should consult with a financial advisor to fully understand the implications of these deferred tax liabilities. While these figures reflect the overall financial position of Jack In The Box, they can provide insight into the company's financial strategies and potential tax-related obligations, which indirectly affect the stability and financial health of the franchise system.