What was the total amount of deferred tax liabilities for Precision Door Service in 2023?
Precision_Door_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
the Company's net US deferred tax liabilities, impairments of GAAP goodwill for which no deferred income tax assets or liabilities are provided, as well as the US deferred income tax impact of the purchase of the Pimlico tradename by a Non-Franchisor SPV Entity within the Securitization Entities from a non-securitization entity, and true-ups to the beginning of the tax period accounts.
The components of deferred income tax assets and liabilities as of December 31 are as follows:
| 2023 | 2022 | |
|---|---|---|
| Deferred tax assets: | ||
| Accounts receivable allowance | $ 540 | $ 355 |
| Accrued expenses | 1,670 | 1,765 |
| Notes receivable allowance | 820 | 855 |
| Net operating loss carryforwards | 513 | 1,234 |
| Interest expense limitation | 32,083 | 18,462 |
| Deferred revenue | 13,850 | 13,084 |
| Operating lease liability | 6,569 | 7,912 |
| Othe |
Source: Item 21 — Financial Statements (FDD page 91)
What This Means (2025 FDD)
According to Precision Door Service's 2025 Franchise Disclosure Document, the total deferred tax liabilities for the company in 2023 were $(280,248). This figure represents the net amount of tax obligations that Precision Door Service has deferred to future periods. These liabilities arise from temporary differences between the book value of assets and liabilities and their tax bases.
The deferred tax liabilities consist of several components, including prepaid expenses, property and equipment, intangible assets and goodwill, interest rate swaps, operating lease right-of-use assets, and other miscellaneous items. Specifically, these individual liabilities amounted to: Prepaid expenses at ($562), Property and equipment at ($8,946), Intangible assets and goodwill at ($263,703), Interest rate swap at ($6), Operating lease right-of use assets at ($6,845), and Other at ($186).
For a prospective franchisee, understanding deferred tax liabilities is crucial as it provides insights into the company's financial health and future tax obligations. A significant deferred tax liability could indicate that the company will have higher tax expenses in the future, which could impact profitability. It is important to note that deferred tax liabilities are a normal part of business operations, but their magnitude and composition should be carefully evaluated as part of due diligence.