What were the other adjustments for the allowance for doubtful accounts for Budget in 2023?
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 |
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, 2023, was $5 million. The table provides a breakdown of the allowance for doubtful accounts, showing the beginning balance, expense (or benefit), other adjustments, deductions, and ending balance for 2023.
The "other adjustments" primarily consist of currency translation adjustments, as indicated by footnote (a) in the table. This means that changes in currency exchange rates impacted the reported value of the allowance for doubtful accounts during that year. For a prospective franchisee, this highlights the importance of understanding how currency fluctuations can affect Budget's financial statements, especially if the franchisee operates internationally or deals with international transactions.
It's important to note that these adjustments are specific to Budget's overall financial reporting and may not directly impact the day-to-day operations of an individual franchise. However, understanding these adjustments can provide a more comprehensive view of the company's financial health and the factors that influence it.