For what years is the tax valuation allowance detailed in the Budget FDD?
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 | 87 | $ | 87 | $ (3) |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 79)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the tax valuation allowance is detailed for the years 2022, 2023, and 2024. The document provides a breakdown of the tax valuation allowance for these three years within the context of the allowance for doubtful accounts. Specifically, the tax valuation allowance was $106 million in 2022, $103 million in 2023 and $85 million in 2024.
This information is crucial for prospective Budget franchisees as it provides insight into the company's financial health and tax strategies. The valuation allowance reflects Budget's assessment of the recoverability of its deferred tax assets. A higher valuation allowance might suggest greater uncertainty regarding the realization of these assets, while a lower allowance could indicate more confidence in their future value.
Understanding these figures helps potential franchisees evaluate the financial stability and tax planning effectiveness of Budget. Reviewing these trends over multiple years allows for a more informed assessment of the company's financial management and its potential impact on the franchisee's investment. It is important to note that these figures are part of a larger financial picture, and prospective franchisees should consider them in conjunction with other financial data provided in the FDD.