What were the deductions for the tax valuation allowance for Budget in 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 deductions for the tax valuation allowance for the year ended December 31, 2024, were not explicitly listed as a specific dollar amount. However, the table provided shows the changes in the tax valuation allowance during that year. The tax valuation allowance began the period with a balance of $106 million, had an expense (benefit) of $(6) million, other adjustments of $(15) million, and deductions of $0. The balance at the end of the period was $85 million.
In simpler terms, the tax valuation allowance is an accounting measure Budget uses to reflect the portion of deferred tax assets that they estimate may not be realized in the future. The changes during the year, including the expense/benefit, other adjustments, and deductions, affect the overall valuation allowance balance.
The deductions specifically refer to reductions in the valuation allowance. In 2024, Budget had no deductions to the tax valuation allowance. This means that no specific item or event caused a direct reduction in the valuation allowance during that year. The overall decrease in the valuation allowance from $106 million to $85 million was due to the combination of the expense (benefit) and other adjustments, not deductions.