What were the other adjustments for the Tax Valuation Allowance for Budget for the year ended December 31, 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 | 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 tax valuation allowance saw other adjustments primarily related to currency translation. For the year ended December 31, 2024, these other adjustments amounted to $-15 million.
This adjustment is part of a broader table detailing the changes in the tax valuation allowance. The beginning balance for 2024 was $106 million. During the year, there was an expense benefit of $-6 million and deductions of $0. The ending balance was $85 million.
Currency translation adjustments can arise when Budget has international operations and the value of foreign tax assets changes relative to the reporting currency (likely U.S. dollars). These adjustments reflect gains or losses due to fluctuations in exchange rates, impacting the overall valuation of Budget's tax assets. For a prospective franchisee, this highlights the complexity of Budget's financial reporting, especially considering its global presence.