What was the total provision for income taxes for Management Recruiters on December 31, 2022, in thousands?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
determined adversely, will not have a material adverse effect on our business, financial condition or results of operations. There have been no material changes in our legal proceedings as of December 31, 2023.
Note 12 – Income Tax
The provision for income taxes is comprised of the following (in thousands):
| December 31, 2023 | December 31, 2022 |
|---|
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 65–66)
What This Means (2024 FDD)
According to Management Recruiters' 2024 Franchise Disclosure Document, the total provision for income taxes on December 31, 2022, was $1,895 thousand. This figure represents the total amount of income taxes, including both current and deferred taxes, that Management Recruiters accrued for the fiscal year.
Specifically, this provision includes $1,874 thousand in federal current taxes and $434 thousand in state current taxes, totaling $2,308 thousand in current taxes. It also factors in deferred taxes, with a reduction of $279 thousand for federal deferred taxes and $134 thousand for state deferred taxes, resulting in a total reduction of $413 thousand in deferred taxes. The net effect of these current and deferred taxes is the $1,895 thousand provision for income taxes.
For a prospective Management Recruiters franchisee, understanding these figures provides insight into the company's profitability and tax obligations. It's important to note that these are consolidated figures for the entire Management Recruiters organization, not individual franchise locations. Franchisees should consult with financial advisors to understand their own potential tax liabilities and how they might differ from the corporate figures presented in the FDD.
Reviewing the components of the income tax provision, such as the breakdown between current and deferred taxes, can offer a more nuanced understanding of Management Recruiters' financial health. Additionally, comparing these figures to previous years can reveal trends in the company's tax obligations and overall financial performance.