What was the net deferred income taxes for Dollar Rent A Car in 2023?
Dollar_Rent_A_Car Franchise · 2025 FDDAnswer from 2025 FDD Document
Dividends paid to Hertz Holdings | | | (7) | | | (7) | | December 31, 2024 | 100 | $ | $ 4,598 | $ (3,956) | $ (316) | $ 326 |
(1) See "Share Repurchase Programs for Common Stock" in Note 17, "Equity and Earnings (Loss) Per Common Share – Hertz Global," for additional information.
(2) Represents former CEO awards forfeited in March 2024. See also Note 9, "Stock-Based Compensation."
THE HERTZ CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions)
| Years Ended December 31, | |||||
|---|---|---|---|---|---|
| 2024 | 2023 | 2022 | |||
| Cash flows from operating activities: | |||||
| Net income (loss) | $ (3,137) $ | 452 | $ 1,355 | ||
| Adjustments to reconcile net income (loss) to net cash provided by (used in) | |||||
| operating activities: | |||||
| Depreciation and reserves for revenue earning vehicles, net | 3,983 | 2,422 | 809 | ||
| Depreciation and amortization, non-vehicle | 139 | 149 | 142 | ||
| Amortization of deferred financing costs and debt discount (premium) | 74 | 61 | 53 | ||
| Stock-based compensation charges | 63 | 87 | 130 | ||
| Stock-based compensation forfeitures | (68) | — | — | ||
| Provision for receivables allowance | 120 | 93 | 57 | ||
| Deferred income taxes, net | (459) | (380) | 301 | ||
| Long-Lived Assets impairment | 1,048 | — | — | ||
| (Gain) loss on sale of non-vehicle capital assets | 3 | (162) | (5) | ||
| Changes in financial instruments | 7 | 117 | (111) | ||
| Other | (30) | 5 | 11 | ||
| Changes in assets and liabilities: | |||||
| Non-vehicle receivables | 23 | (216) | (264) | ||
| Prepaid expenses and other assets | 8 | (39) | (126) | ||
| Operating lease right-of-use assets | 386 | 365 | 280 | ||
| Non-vehicle accounts payable | (14) | (48) | 43 | ||
| Accrued liabilities | 324 | (39) | 80 | ||
| Accrued taxes, net | 21 | 1 | 73 | ||
| Operating lease liabilities | (417) | (391) | (309) | ||
| Self-insured liabilities | 152 | (6) | 19 | ||
| Net cash provided by (used in) operating activities | 2,226 | 2,471 | 2,538 | ||
| Cash flows from investing activities: | |||||
| Revenue earning vehicles expenditures | (10,524) | (9,514) | (10,596) | ||
| Proceeds from disposal of revenue earning vehicles | 7,678 | 5,498 | 6,498 | ||
| Non-vehicle capital asset expenditures | (105) | (188) | (150) | ||
| Proceeds from disposal of non-vehicle capital assets | 23 | 181 | 12 | ||
| Collateral returned in exchange for letters of credit | — | — | 19 | ||
| Return of (investment in) equity investments | (1) | (1) | (16) | ||
| Net cash provided by (used in) investing activities | (2,929) | (4,024) | (4,233) | ||
| Cash flows from financing activities: | |||||
| Proceeds from issuance of vehicle debt | 3,873 | 6,043 | 9,672 | ||
| Repayments of vehicle debt | (4,827) | (4,837) | (6,639) | ||
| Proceeds from issuance of non-vehicle debt | 4,646 | 2,490 | — | ||
| Repayments of non-vehicle debt | (2,966) | (2,01 |
Source: Item 23 — RECEIPTS (FDD pages 102–301)
What This Means (2025 FDD)
According to Dollar Rent A Car's 2025 Franchise Disclosure Document, the net deferred income taxes for 2023 was ($380). This figure is derived from the cash flow statement, where deferred income taxes are adjusted to reconcile net income to net cash provided by operating activities.
This number reflects the difference between income tax expense reported for financial accounting purposes and the amount actually paid or expected to be paid to tax authorities. A negative value, as in this case, suggests that Dollar Rent A Car had deferred tax liabilities exceeding its deferred tax assets during that period.
For a prospective franchisee, understanding deferred income taxes is crucial as it impacts the overall financial health and profitability of Dollar Rent A Car. While franchisees do not directly deal with these high-level corporate taxes, the financial stability of the parent company is vital for the brand's reputation and support system.