What was the total value of deferred tax assets for Precision Door Service in 2022?
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 | |--------
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 value of deferred tax assets in 2022 was $46,030. Deferred tax assets arise from temporary differences between the book value of an asset or liability and its tax basis. These assets represent future tax benefits that Precision Door Service expects to realize.
The deferred tax assets are broken down into several categories. These include accounts receivable allowance ($355), accrued expenses ($1,765), notes receivable allowance ($855), net operating loss carryforwards ($1,234), interest expense limitation ($18,462), deferred revenue ($13,084), operating lease liability ($7,912), and other ($2,363).
A prospective Precision Door Service franchisee should understand that deferred tax assets can be subject to change based on future profitability and changes in tax laws. Monitoring these assets and liabilities is a part of assessing the overall financial health of the company.