What was the balance of the Tax Valuation Allowance at the end of the period for Budget as of 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 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 79)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the balance of the tax valuation allowance at the end of the period, specifically December 31, 2024, was $85 million. The table provided in the FDD outlines the changes in the tax valuation allowance over the years.
The tax valuation allowance is an important figure for Budget as it reflects the company's assessment of whether it will be able to use certain deferred tax assets in the future. These assets typically arise from tax loss carryforwards and other deductible items. A valuation allowance is established when it is "more likely than not" that some or all of the deferred tax assets will not be realized.
For a prospective Budget franchisee, understanding the tax valuation allowance may not have a direct impact on their day-to-day operations. However, it provides insight into the financial health and tax planning strategies of the company. It's worth noting that the valuation allowance can fluctuate based on Budget's future profitability and changes in tax laws. The beginning balance for the tax valuation allowance for the year ended December 31, 2024 was $106 million, with a balance of $85 million at the end of the period.