What was the total value of loss carry forwards for Noodles & Company in 2024?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
lusive of indefinite-lived assets and liabilities. The Company will maintain the remaining valuation allowance until there is sufficient evidence to support a full or partial reversal. The reversal of a previously recorded valuation allowance will generally result in a benefit to the effective tax rate.
As of December 31, 2024 and January 2, 2024, net operating loss ("NOL") carry forwards for federal income tax purposes of approximately $184.0 million and $180.0 million, respectively, were available to offset future taxable income. Of these amounts, $106.8 million is available to offset future taxable income through 2037 and $77.2 million can be carried forward indefinitely, but can only offset 80% of future taxable income. The Internal Revenue Code Section 382 generally limits the utilization of NOLs when there is an ownership change. The Company completed an analysis under Section 382 through December 31, 2024 and determined that there isn't a current year limitation on utilization of tax attributes. Prior to the utilization of NOLs in the future, the Company will determine whether there are any limitations under Section 382. If such a limitation exists, it is possible that a portion of the NOLs may not be available for use before expiration.
Uncertain tax positions are recognized if it is more likely than not that the Company will be able to sustain the tax position taken, and the measurement of the benefit is calculated as the largest amount that is more than 50% likely to be realized upon resolution of the benefit.
Source: Item 22 — CONTRACTS (FDD pages 98–99)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, as of December 31, 2024, the company had net operating loss carry forwards for federal income tax purposes of approximately $184.0 million. These loss carry forwards are available to offset future taxable income. Of this total amount, $106.8 million can be used to offset future taxable income through 2037, while $77.2 million can be carried forward indefinitely but can only offset 80% of future taxable income.
The document also indicates that the company performed an analysis under Section 382 of the Internal Revenue Code through December 31, 2024, and determined that there isn't a current year limitation on the utilization of tax attributes. However, prior to using these net operating losses in the future, Noodles & Company will need to determine if there are any limitations under Section 382. If such limitations exist, a portion of the net operating losses may not be available for use before they expire.
Additionally, the deferred tax assets related to loss carry forwards were valued at $47,555 in 2024. This figure represents the potential reduction in future tax obligations because of these loss carry forwards. A valuation allowance of $60.2 million was maintained against U.S. deferred tax assets due to uncertainty regarding the realizability of future tax benefits. This valuation allowance reflects the company's assessment of the likelihood that it will be able to use these deferred tax assets in the future.