What were the deductions for the tax valuation allowance for Budget in 2024, expressed in millions of dollars?
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 $0 million. This is based on the provided table which outlines changes in the tax valuation allowance over several years.
The tax valuation allowance is a contra-asset account used to reduce the carrying value of deferred tax assets when it is more likely than not that some portion or all of the deferred tax assets will not be realized. A deduction of $0 indicates that there was no reduction in the valuation allowance during 2024.
For a prospective Budget franchisee, this information is relevant in understanding Budget's financial health and tax strategies. While a zero deduction in the tax valuation allowance for 2024 might seem neutral, it's important to consider this figure in the context of Budget's overall financial performance and deferred tax assets. A franchisee should consult with a financial advisor to fully understand the implications of these figures.