What was the total provision for (benefit from) income taxes for Budget in 2022?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
ology applied and measurable inputs used, and the mathematical accuracy of the calculation.
/s/ DELOITTE & TOUCHE LLP New York, New York February 14, 2025
We have served as the Company's auditor since 1997.
Avis Budget Group, Inc. CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except per share data)
| Y | 11, | |||
|---|---|---|---|---|
| 2024 | 2023 | 2022 | ||
| Revenues | $ | 11,789 | $ 12,008 | $ 11,994 |
| Expenses | ||||
| Operating | 6,014 | 5,675 | 5,285 | |
| Vehicle depreciation and lease charges, net | 2,976 | 1,739 | 828 | |
| Selling, general and administrative | 1,352 | 1,408 | 1,348 | |
| Vehicle interest, net | 941 | 736 | 402 | |
| Non-vehicle related depreciation and amortization | 237 | 216 | 225 | |
| Interest expense related to corporate debt, net: | ||||
| Interest expense | 358 | 296 | 250 | |
| Early extinguishment of debt | 19 | 5 | _ | |
| Long-lived asset impairment and other related charges | 2,470 | _ | ||
| Restructuring and other related charges | 37 | 11 | 19 | |
| Transaction-related costs, net | 3 | 5 | 8 | |
| Other (income) expense, net | 9 | 3 | (7) | |
| Total expenses | 14,416 | 10,094 | 8,358 | |
| Income (loss) before income taxes | (2,627) | 1,914 | 3,636 | |
| Provision for (benefit from) income taxes | (810) | 279 | 880 | |
| Net income (loss) | (1,817) | 1,635 | 2,756 | |
| Less: Net income (loss) attributable to non-controlling interests | 3 | (8) | ||
| Net income |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 79)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the total provision for income taxes in 2022 was $880. This figure represents the company's total expense for income taxes, encompassing federal, state, and foreign income taxes.
For a prospective Budget franchisee, understanding the company's tax obligations is crucial for assessing its overall financial health. The provision for income taxes directly impacts the net income, which is a key indicator of profitability. A higher provision for income taxes suggests higher profitability, while a lower provision or a benefit from income taxes may indicate losses or the utilization of tax benefits.
It's important to note that this figure is just one component of Budget's overall financial performance. Franchisees should review the complete financial statements, including the income statement, balance sheet, and cash flow statement, to gain a comprehensive understanding of the company's financial position. Additionally, franchisees should consult with a financial advisor to interpret these statements and assess the potential risks and rewards of investing in a Budget franchise.
In the context of franchise research, comparing Budget's provision for income taxes with those of other similar franchise systems can provide valuable insights. This comparison can help potential franchisees benchmark Budget's profitability and tax efficiency against its competitors, aiding in their decision-making process.