What were the other adjustments for the Allowance for Doubtful Accounts for Budget for the year ended December 31, 2024?
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, 2024, were $(3) million. The table provides a breakdown of the allowance for doubtful accounts, showing the balance at the beginning of the period, expense (benefit), other adjustments, deductions, and the balance at the end of the period.
The "Allowance for Doubtful Accounts" is a contra-asset account used to estimate the amount of accounts receivable that a company, like Budget, may not be able to collect. The expense or benefit reflects changes in this estimate during the year.
The "Other Adjustments" column includes items that aren't direct expenses or deductions related to uncollectible accounts. In Budget's case, the footnote indicates that these adjustments primarily consist of currency translation adjustments. Currency translation adjustments arise when a company consolidates financial statements from subsidiaries operating in different currencies. These adjustments reflect the impact of changes in exchange rates on the value of assets and liabilities denominated in foreign currencies. For a prospective Budget franchisee, this means that the allowance for doubtful accounts can be affected by currency fluctuations, especially if Budget has international operations.