What was the amount of Budget's net tax loss carryforwards as of December 31, 2024?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
| The provision for (benefit from) income taxes consists of the following: | 2024 | Year Ended December 31, 2023 | 2022 | |
|---|---|---|---|---|
| Current Federal State Foreign Current income tax provision | $ 14 11 70 95 | $ 45 43 88 | $ | 137 61 198 |
| Deferred Federal State Foreign Deferred income tax provision Provision for (benefit from) income taxes | $ (644) | 77 | $ | 622 |
| (211) | 47 | (22) | ||
| (50) | 67 | 82 | ||
| (905) | 191 | 682 | ||
| (810) | $ 279 | 880 | ||
| Income (loss) before income taxes is comprised of the following: | 2024 | Year Ended December 31, | 2022 | |
| United States (U.S.) | $ (2,642) | $ 1,418 | $ | 3,114 |
| 15 | 496 | 522 | ||
| Foreign Income (loss) before income taxes | $ (2,627) | $ 1,914 | $ | 3,636 |
| Deferred income tax assets, net is co |
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 net tax loss carryforwards of $807 million. This figure represents the amount of losses that Budget has incurred but has not yet used to reduce its taxable income. These carryforwards can be used in future years to offset taxable income, potentially reducing Budget's future tax liabilities.
For a prospective franchisee, this information provides insight into Budget's financial health and tax planning strategies. A substantial amount of net tax loss carryforwards suggests that Budget has experienced significant losses in the past, but it also indicates a potential future tax benefit. This could free up capital for investments in growth and franchisee support.
It's important to note that the ability to utilize these carryforwards depends on Budget's future profitability and any limitations imposed by tax regulations. Franchisees should consider this information as part of their overall assessment of Budget's financial stability and long-term prospects. Understanding how Budget manages its tax liabilities can offer a glimpse into its overall financial management practices.