What were the deductions for the tax valuation allowance for Budget in 2023, expressed in millions of dollars?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
| (in millions) Description | Balance of | at Beginning Period | Expe | nse (Benefit) | Other Adjustments (a) | _ | Deductions | Balance at End of Period |
|---|---|---|---|---|---|---|---|---|
| Tax Valuation Allowance: Year Ended December 31, 2024 2023 2022 | $ | 106 103 169 | $ | (6) (2) (63) | (15) 5 (3) | $ | - | $ 85 106 103 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 79)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the deductions for the tax valuation allowance for the year ended December 31, 2023, were $0 million. This figure is part of a larger table presenting financial statement details in millions of dollars.
The tax valuation allowance is an accounting measure used to reduce the value of deferred tax assets if it is more likely than not that some portion or all of those deferred tax assets will not be realized. The deductions represent a reduction in this allowance during the specified period. In Budget's case, the absence of a deduction for 2023 indicates there was no reduction in the tax valuation allowance during that year.
Prospective franchisees should note that this information is part of Budget's overall financial statements and reflects the company's financial management and tax strategies. While a zero deduction in tax valuation allowance for a single year may not be significant on its own, it is advisable to review these figures in the context of Budget's overall financial performance and consult with a financial advisor to understand any potential implications.