What was the total value of deferred tax assets 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 | |--------
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 for the company in 2023 was $59,468. This figure represents the sum of various components, including allowances for accounts receivable ($540) and notes receivable ($820), accrued expenses ($1,670), net operating loss carryforwards ($513), interest expense limitation ($32,083), deferred revenue ($13,850), operating lease liability ($6,569), and other deferred tax assets ($3,423).
Deferred tax assets arise when there are temporary differences between the book value of an asset or liability and its tax basis. These differences result in deductible amounts in the future when the asset is recovered or the liability is settled. For Precision Door Service, the largest components of deferred tax assets in 2023 were related to interest expense limitation and deferred revenue, indicating that these items are expected to result in future tax deductions.
For a prospective franchisee, understanding deferred tax assets is crucial for assessing the overall financial health and tax planning strategies of Precision Door Service. While deferred tax assets represent potential future tax benefits, their actual realization depends on the company's future taxable income. Therefore, franchisees should consider these figures as part of their due diligence, but also consult with a financial advisor to understand the implications for their investment.