What was the amount of Budget's accrued liabilities and deferred revenue as of December 31, 2024?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
| 496 | | 522 | | Foreign Income (loss) before income taxes | $ (2,627) | $ 1,914 | $ | 3,636 | | Deferred income tax assets, net is comprised of the following: | | As of December 31, | | | | | |----------------------------------------------------------------|-------------|--------------------|-------|--|--|--| | | | 2024 | 2023 | | | | | Deferred income tax assets: | $ | 983 $ | 1,373 | | | | | Net tax loss carryforwards | • | 807 | 703 | | | | | Long-term operating lease liabilities | | 405 | 323 | | | | | Tax credits | | 358 | 179 | | | | | Deferred interest expense (a) | | 157 | 169 | | | | | Accrued liabilities and deferred revenue | | 24 | 22 | | | | | Depreciation and amortization | | 19 | 18 | | | | | Provision for doubtful accounts | | 28 | 34 | | | | | Other (a)
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 79)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, as of December 31, 2024, the company had $24 million in accrued liabilities and deferred revenue. This figure is part of the deferred income tax assets. This indicates the amount of revenue Budget has received for services or products that have not yet been delivered or recognized as earned, along with liabilities that have been incurred but not yet paid.
For a prospective Budget franchisee, understanding the composition and changes in these deferred tax assets can provide insights into the company's financial obligations and future revenue recognition. It's important to note that this $24 million is a component of a larger set of deferred income tax assets, and it reflects the net amount after considering various factors like tax loss carryforwards and depreciation.
Accrued liabilities and deferred revenue are typical balance sheet items for established companies. Monitoring these figures helps in assessing Budget's short-term financial health and how effectively it manages its obligations and revenue streams. A significant change in these figures from year to year could signal shifts in Budget's business operations or accounting practices, warranting further investigation.