What was the deferred federal income tax provision for Budget in 2022?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
ties under vehicle programs - other of $203 million, $287 million, and $265 million, respectively, and receivables related to vehicle sales included in assets under vehicle programs - receivables from vehicle manufacturers and other of $287 million, $237 million, and $212 million, respectively.
Income Taxes
| The provision for (benefit from) income taxes consists of the following: | 2024 | Year Ended December 31, 2023 | 2022 | |
|---|---|---|---|---|
| Current Federal State Forei |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 79)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the deferred federal income tax provision for the year 2022 was a benefit of $644. This figure is part of the broader provision for income taxes, which also includes state and foreign components.
For a prospective franchisee, understanding these figures is crucial for assessing the financial health and tax strategies of Budget. Deferred income taxes arise from temporary differences between the tax basis of an asset or liability and its reported amount in the financial statements. A positive deferred tax provision (as in this case) generally indicates that Budget recognized more deductions or less income for tax purposes than for financial reporting purposes during that year.
It's important to note that this is just one piece of the financial puzzle. Franchisees should consider these figures in conjunction with other financial metrics, such as revenue, expenses, and overall profitability, to gain a comprehensive understanding of Budget's financial performance. Additionally, it's advisable to consult with a financial advisor to fully understand the implications of these tax provisions.