What was the amount of Budget's tax credits as of December 31, 2024?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
91 | | 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 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 | | |
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 tax credits amounting to $358. This figure is part of the deferred income tax assets, which totaled $2,698.
Deferred income tax assets represent the future tax benefits that Budget expects to realize. These assets arise from various sources, including net tax loss carryforwards ($983), long-term operating lease liabilities ($807), and other items. The tax credits of $358 contribute to the overall deferred income tax assets, potentially reducing Budget's future tax obligations.
For a prospective Budget franchisee, understanding these figures provides insight into the company's financial health and tax strategies. While franchisees do not directly benefit from these corporate tax assets, they reflect the financial sophistication and planning within the Budget organization. A strong understanding of the franchisor's financial position can be valuable for franchisees making long-term investment decisions.