What were the other adjustments for the tax valuation allowance for Budget in 2024, expressed in millions of dollars?
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 | 87 | $ | 87 | $ (3) |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 79)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the other adjustments to the tax valuation allowance for the year ended December 31, 2024, amounted to a deduction of $15 million. This figure is part of a table presenting a detailed breakdown of the changes in the tax valuation allowance during the specified period. The table also includes the balance at the beginning of the period, expense/benefit, deductions, and the balance at the end of the period.
The tax valuation allowance is a contra-asset account used to reduce the carrying value of deferred tax assets when it is more likely than not that some portion or all of the deferred tax assets will not be realized. The adjustments reflect changes in circumstances or estimates that impact the realizability of these deferred tax assets. These adjustments can include items such as changes in tax laws, changes in estimates of future taxable income, or changes in the company's assessment of its ability to utilize tax loss carryforwards.
For a prospective Budget franchisee, understanding these adjustments is crucial as they reflect the company's financial health and tax planning strategies. A significant adjustment to the tax valuation allowance could indicate changes in the company's profitability or its ability to utilize tax benefits, which could indirectly affect the franchisee's business environment. Reviewing these figures in the context of Budget's overall financial performance can provide valuable insights into the stability and potential risks associated with the franchise.