What were the other adjustments for the tax valuation allowance for Budget in 2023, expressed in millions of dollars?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
| (in millions) Description | Balance of | at Beginning Period | Expe | nse (Benefit) | Other Adjustments (a) | _ | Deductions | Balance at End of Period |
|---|---|---|---|---|---|---|---|---|
| Tax Valuation Allowance: Year Ended December 31, 2024 2023 2022 | $ | 106 103 169 | $ | (6) (2) (63) | (15) 5 (3) | $ | - | $ 85 106 103 |
| (a) Primarily currency translation adjustments. | G-1 | ľ |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 79)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the tax valuation allowance for the year ended December 31, 2023, had other adjustments of $5 million. These adjustments primarily reflect currency translation adjustments.
For a prospective Budget franchisee, understanding the tax valuation allowance and its adjustments can be important for assessing the company's financial health. The tax valuation allowance is used to reduce deferred tax assets if it is more likely than not that some portion or all of the deferred tax assets will not be realized.
The "other adjustments" mainly due to currency translation indicate how fluctuations in currency exchange rates can impact Budget's financial statements. Franchisees should be aware that such non-cash adjustments can affect the company's reported earnings and overall financial position. Reviewing these figures over several years, as presented in the table, can provide a clearer picture of the trends and potential volatility.