What were Noodles & Company's total deferred tax liabilities in 2024 (in thousands)?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Federal income tax benefit at federal rate | $ (7,730) | $ (2,065) | $ (688) |
| State income tax benefit, net of federal tax | (1,793) | (420) | (112) |
| Other permanent differences | 783 | 629 | 368 |
| Tax credits | (1,400) | (1,513) | (1,608) |
| Change in valuation allowance | 9,484 | 3,352 | 1,558 |
| Tax rate change | 74 | — | — |
| Deferred tax asset write-off | 630 | 78 | 320 |
| Other items, net | 6 | (37) | 199 |
| Provision for income taxes | $ 54 | $ 24 | $ 37 |
| Effective income tax rate | (0.1) % | (0.2) % | (1.1) % |
The Company's total deferred tax assets and liabilities are as follows (in thousands):
| Deferred tax as
Source: Item 22 — CONTRACTS (FDD pages 98–99)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, the company's total deferred tax liabilities are detailed in Item 22. The table provided outlines various deferred tax assets and liabilities. For the year 2024, Noodles & Company had total deferred tax liabilities of $58,573 thousand. After accounting for a valuation allowance of $60,157 thousand, the net deferred tax liabilities amounted to $276 thousand.
Deferred tax liabilities generally arise from temporary differences between the book value of an asset or liability and its tax basis. These liabilities represent future tax obligations when these temporary differences become taxable. The components listed, such as property, equipment, intangible assets, inventory smallwares, and operating lease assets and liabilities, contribute to these deferred tax liabilities.
A prospective franchisee should understand that these figures reflect the overall financial management and tax strategies of Noodles & Company. While franchisees do not directly inherit these specific deferred tax liabilities, understanding the parent company's financial health and tax planning can provide insight into the stability and sophistication of the franchise system. Reviewing these figures in the context of the company's overall financial statements is advisable.
It is also important to note the valuation allowance, which reduces the deferred tax assets to an amount that is more likely than not to be realized. This indicates the company's assessment of its ability to utilize these assets in the future. The net deferred tax liabilities figure provides a more conservative view of the company's tax obligations, which is a key metric for assessing financial risk.