What were the deductions for the Tax Valuation Allowance for Budget for the year ended 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.
****
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.
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. This can occur when a company has a history of losses or expects to have losses in the future. The balance of the tax valuation allowance can change from year to year based on a company's assessment of the realizability of its deferred tax assets.
For prospective Budget franchisees, understanding these figures is crucial for assessing the overall financial health and tax position of the company. A significant valuation allowance could indicate uncertainty regarding the company's ability to utilize its deferred tax assets in the future, which could impact its profitability and cash flow. It is important to note that the tax valuation allowance is just one factor to consider when evaluating a company's financial performance, and it should be analyzed in conjunction with other financial metrics and information.