What was the expense (benefit) for the tax valuation allowance for Budget in 2023?
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 expense (benefit) for the tax valuation allowance in 2023 was ($2) million. This figure is part of a table detailing the allowance for doubtful accounts and tax valuation allowance over multiple 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 benefit, as indicated by the negative sign, suggests that Budget reduced its valuation allowance during that year. This could be due to a reassessment of the likelihood of realizing those deferred tax assets.
For a prospective Budget franchisee, understanding these figures provides insight into the company's financial management and tax strategies. While the franchisee will not directly manage these specific corporate-level tax items, they reflect the overall financial health and approach of the franchisor, which can indirectly impact the support and resources available to franchisees.