What were the other adjustments for the Allowance for Doubtful Accounts for Budget for the year ended December 31, 2022?
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 $(75) million for the year ended December 31, 2022. The document 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. This allowance reflects the company's estimate of uncollectible receivables. The currency translation adjustments indicate how fluctuations in exchange rates impact the value of these accounts when reported in U.S. dollars.
Franchisees should be aware that currency translation adjustments can introduce volatility into Budget's financial statements. While these adjustments don't directly impact the cash flows of individual franchise locations, they can affect the overall financial health and reported earnings of the company. Therefore, it's important for franchisees to consider these factors when assessing the financial stability of Budget.