What was the allowance for doubtful accounts expense (benefit) for Budget in 2022, 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.
****
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 | |------------------------------------------
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 expense (benefit) for the year ended December 31, 2022, was a benefit of $(3) million. This figure represents the change in the estimated amount of uncollectible accounts receivable during that year.
For a prospective Budget franchisee, understanding the allowance for doubtful accounts is crucial. It reflects Budget's ability to collect its receivables. A negative expense, or benefit, suggests that Budget reduced its allowance, possibly due to improved collections or a change in estimation methods.
This information is part of Budget's financial statements, which provide insights into the company's financial health and performance. Franchisees should review these statements carefully to assess the financial stability of Budget and understand how it manages its assets and liabilities.