What were the other adjustments for the Tax Valuation Allowance for Budget for the year ended December 31, 2023?
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, the other adjustments to the tax valuation allowance for the year ended December 31, 2023, amounted to $5 million. These adjustments are further clarified as primarily currency translation adjustments.
For a prospective Budget franchisee, understanding these adjustments is crucial as they reflect changes in the valuation of deferred tax assets, which can impact the company's overall financial health. Currency translation adjustments specifically indicate how fluctuations in exchange rates affect the value of these assets when reported in U.S. dollars.
It's important to note that these adjustments are part of a broader context, including the beginning and ending balances of the tax valuation allowance, as well as any expenses or benefits recognized during the year. The tax valuation allowance itself is an estimate of the portion of deferred tax assets that are not expected to be realized in the future. Therefore, franchisees should consider these figures as part of their due diligence, assessing the stability and predictability of Budget's financial performance.