What were the deductions for the Tax Valuation Allowance for Budget for the year ended December 31, 2022?
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, 2022, were $0.
The table provides a breakdown of the tax valuation allowance, detailing the balance at the beginning of the period, expense (benefit), other adjustments, deductions, and the balance at the end of the period for the years 2022, 2023, and 2024. The "Tax Valuation Allowance" row shows the changes in the allowance over these three years.
For a prospective Budget franchisee, understanding these figures is crucial for assessing the company's financial health and stability. The tax valuation allowance reflects management's assessment of the recoverability of deferred tax assets. A deduction in this allowance could indicate a reassessment of the likelihood of realizing these assets, which could impact the company's future tax liabilities and overall profitability.