What were the other adjustments for the allowance for doubtful accounts for Budget in 2023, 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 |
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 $1 million. These adjustments primarily reflect currency translation adjustments.
The allowance for doubtful accounts represents Budget's estimate of the amount of accounts receivable that may not be collected. The 'other adjustments' category provides insight into factors beyond expense/benefit and deductions that influence this allowance. For Budget, currency translation adjustments appear to be a notable component.
Prospective franchisees should be aware that fluctuations in currency exchange rates can impact Budget's financial statements, specifically the allowance for doubtful accounts. While this may not directly affect day-to-day operations, it's important to understand how these adjustments can influence the overall financial health of the company.