What was the total net deferred tax assets for Noodles & Company in 2023?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
| | Valuation allowance | | (60,157) | (50,673) | | Net deferred tax liabilities | $ | (276) $ | (255) |
Deferred income taxes arise because of the differences in the book and tax bases of certain assets and liabilities. Deferred income tax liabilities and assets consist of the following (in thousands):
| 2024 | 2023 | |
|---|---|---|
| Deferred tax assets (liabilities): | ||
| Loss carry forwards | $ 47,555 | $ 45,547 |
| Deferred franchise revenue | 1,655 | 1,968 |
| Property, equipment and intangible assets | (14,479) | (20,473) |
| Stock-based compensation | 1,197 | 1,872 |
| Tax credit carry forwards | 10,143 | 8,744 |
| Interest expense | 3,609 | 1,935 |
| Inventory smallwares | (1,754) | (1,772) |
| Other a |
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 net deferred tax assets in 2023 were $50,418. This figure represents the net value of deferred tax assets after accounting for various factors such as loss carry forwards, deferred franchise revenue, property, equipment, intangible assets, stock-based compensation, tax credit carry forwards, interest expense, inventory smallwares, other accrued expenses, operating lease assets and liabilities, and other adjustments.
Deferred tax assets arise when there are temporary differences between the book value of assets and liabilities and their tax bases. These differences result in future tax benefits for the company. The total net deferred tax assets figure is an important indicator of the company's future tax obligations and benefits.
For a prospective Noodles & Company franchisee, understanding the company's deferred tax position can provide insights into its financial health and future tax liabilities. It is important to note that deferred tax assets are subject to valuation allowances, which reduce the carrying value of these assets if it is more likely than not that some or all of the deferred tax assets will not be realized.