What were the other adjustments for the tax valuation allowance for Budget in 2024?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
ed average interest rate of 8.01%. These notes were issued under previously outstanding series of debt.
In February 2025, we borrowed $500 million under a floating rate term loan due December 2025, which is part of our senior revolving credit facilities.
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Schedule II – Valuation and Qualifying Accounts
| (in millions) Description | Balance of | at Beginning Period | Expe | nse (Benefit) | Other Adjustments (a) | _ | Deductions | Balance at End of Period |
|---|---|---|---|---|---|---|---|---|
| Allowance for Doubtful Accounts: Year Ended December 31, 2024 2023 2022 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 79)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, for the year ended December 31, 2024, the tax valuation allowance saw an expense (benefit) of ($6) million and other adjustments of ($15) million. This resulted in a balance at the end of the period of $85 million. The primary driver for these other adjustments was currency translation adjustments.
For Budget, the tax valuation allowance represents an estimate of deferred tax assets that may not be realized in the future. These adjustments reflect changes in that estimate based on factors like currency fluctuations. Currency translation adjustments arise when Budget converts financial statements from different currencies into its reporting currency.
Prospective Budget franchisees should understand that these tax valuation allowances and adjustments are part of the company's overall financial management. While these figures may not directly impact day-to-day franchise operations, they reflect the financial health and stability of the parent company, which can indirectly affect franchisees. Reviewing these figures over several years, as presented in the table, can provide insights into the consistency and predictability of Budget's financial performance.