What were the other adjustments for the allowance for doubtful accounts for Budget in 2024, 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 allowance for doubtful accounts had other adjustments of $87 million for the year ended December 31, 2024. The FDD specifies that these other adjustments primarily consist of currency translation adjustments.
For a prospective Budget franchisee, understanding the allowance for doubtful accounts and its adjustments is crucial for assessing the financial health of the company. The allowance for doubtful accounts is an estimate of the amount of accounts receivable that Budget may not be able to collect.
The 'other adjustments' figure, which in 2024 was $87 million, reflects changes to this allowance due to factors outside of normal expense or deduction calculations, with currency translation being the primary driver. This means fluctuations in exchange rates can significantly impact Budget's reported financial results. Franchisees should be aware of how these adjustments can affect the company's profitability and overall financial stability.