Where are uncertain tax position liabilities recognized in Remax's consolidated financial statements?

According to Remax's 2025 Franchise Disclosure Document, uncertain tax position liabilities, representing the aggregate tax effect of differences between tax return positions and amounts recognized in the consolidated financial statements, are recognized in "Income taxes payable" within the Consolidated Balance Sheets. This means that when Remax has tax positions that are not certain to be upheld by tax authorities, the estimated liability is recorded under the line item "Income taxes payable" on the company's balance sheet.

For a prospective franchisee, this information is relevant because it provides insight into how Remax accounts for tax uncertainties. It demonstrates that Remax acknowledges and accounts for potential tax liabilities that may arise from uncertain tax positions. This is a standard accounting practice, but it's helpful to see where these liabilities are reported in the financial statements.

Additionally, the FDD mentions that during 2021, in connection with the INTEGRA acquisition, Remax assumed an uncertain tax position related to certain U.S. tax matters and recorded a largely offsetting related indemnification asset. In both 2023 and 2024, a portion of this uncertain tax position and related indemnification asset were reversed due to the lapse of the applicable statute of limitations. This indicates that Remax's tax liabilities and assets can change over time due to events such as statute of limitations expiring, which can impact the company's financial statements.