What were the other adjustments for the allowance for doubtful accounts for Budget in 2022, expressed in millions of dollars?
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 other adjustments to the allowance for doubtful accounts for the year ended December 31, 2022, was $(3) million. The table provides a breakdown of the allowance for doubtful accounts, detailing the beginning balance, expense (benefit), other adjustments, deductions, and ending balance for the years 2022, 2023, and 2024.
The "allowance for doubtful accounts" is an estimate of the amount of accounts receivable that Budget does not expect to collect. This is a standard accounting practice to reflect a more realistic view of the company's assets. The "other adjustments" primarily consist of currency translation adjustments, which can fluctuate based on exchange rates.
For a prospective Budget franchisee, understanding these financial statement details is crucial. It provides insight into how Budget manages its receivables and accounts for potential losses. While a $(3) million adjustment may seem small, it reflects the complexities of managing finances across different currencies and the importance of accurate financial reporting.