What was the total amount of Budget's deferred income tax liabilities as of December 31, 2023?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
t benefits to earnings, net of tax of $(1), $(1), and $(2), respectively | | 4 | 4 | | | | | (114) | 5 | 32 | | Total comprehensive income (loss) attributable to Avis Budget Group, Inc. | $ | (1,935) $ | 1,637 | $ 2,796 |
Avis Budget Group, inc. CONSOLIDATED BALANCE SHEETS (in millions, except par value)
| (In millions, except par value) | • | |
|---|---|---|
| As of December 2024 2027 | 2023 | |
| Assets Current assets: | ||
| Current assets. Cash and cash equivalents | $ 534 $ | 555 |
| Casil and Casil equivalents Receivables (net of allowance for doubtful accounts of $96 and $87, respectively) | 838 | 900 |
| Other current assets | 662 | 684 |
| Total current assets | 2,034 | 2,139 |
| Property and equipment, net | 697 | 719 |
| Operating lease right-of-use assets | 3,057 | 2,654 |
| Deferred income taxes | 1,786 | 1,868 |
| Goodwill | 1,071 | 1,099 670 |
| Other intangibles, net | 601 422 | 441 |
| Other non-current assets | 9,668 | 9,590 |
| Total assets exclusive of assets under vehicle programs | 9,000 | 3,350 |
| Assets under vehicle programs: | 60 | 85 |
| Program cash | 17,619 | 21,240 |
| Vehicles, net | 386 | 443 |
| Receivables from vehicle manufacturers and other | 1,308 | 1,211 |
| Investment in Avis Budget Rental Car Funding (AESOP) LLC—related party | 19.373 | 22,979 |
| $ 29,041 $ | 32,569 | |
| Total assets | ||
| Liabilities and stockholders' equity | ||
| Current liabilities: | $ 2,700 $ | 2,627 |
| Accounts payable and other current liabilities | $ 2,700 $ 20 | 32 |
| Short-term debt and current portion of long-term debt | 2,720 | 2,659 |
| Total current liabilities | ||
| Long-term debt | 5,373 | 4,791 |
| Long-term operating lease ilabilities | 2,484 | 2,117 |
| Other non-current liabilities | 470 | 528 |
| Total liabilities exclusive of liabilities under vehicle programs | 11,047 | 10,095 |
| Liabilities under vehicle programs: | 2.452 | 3.496 |
| Debt | 3,453 | 15.441 |
| Debt due to Avis Budget Rental Car Funding (AESOP) LLC-related party | 14,083 2,442 | 3,418 |
| Deferred income taxes | 333 | 462 |
| Other | 20,311 | 22,817 |
| Commitments and contingencies (Note 15) | ||
| Stockholders' equity: | ||
| Preferred stock, $0.01 par value—authorized 10 shares; none issued and outstanding, in each period | - | _ |
| Common stock, $0.01 par value—authorized 250 shares; issued 137 shares, in each period | 1 | 1 |
| Additional paid-in capital | 6,620 | 6,634 3,854 |
| Retained earnings | 2,029 | 3,854 |
| Accumulated other comprehensive loss | (210) (10.767) | (10,742) |
| Treasury stock, at cost—102 shares, in |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 79)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, as of December 31, 2023, the company's total deferred income tax liabilities were $1,868. This figure is exclusive of liabilities under vehicle programs. When including vehicle programs, the total deferred income tax liabilities amounted to $3,418 as of the same date.
Deferred income tax liabilities represent taxes that Budget owes in the future due to temporary differences between the book (financial statement) value of assets and liabilities and their tax basis. These liabilities arise because certain revenues and expenses are recognized in different periods for financial reporting and tax purposes. For example, depreciation methods may differ, leading to varying deductions and tax liabilities over time.
For a prospective Budget franchisee, understanding these deferred tax implications is crucial for assessing the overall financial health and stability of the company. While deferred tax liabilities are not immediately payable, they represent a future obligation that could impact Budget's cash flow and profitability. Franchisees should consider these factors when evaluating the long-term prospects of investing in a Budget franchise.
It's important to note that these figures are based on Budget's consolidated financial statements, which include the financial results of all its subsidiaries and affiliates. The tax liabilities of individual franchise locations may vary depending on their specific circumstances and tax planning strategies. Therefore, franchisees should consult with their own tax advisors to understand the tax implications of owning and operating a Budget franchise in their particular jurisdiction.