What was the amount of gross (gains) losses reclassified related to minimum pension liability adjustment for Budget in 2023?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
nflation Reduction Act of 2022). As of December 31, 2024, approximately $757 million of authorization remained available to repurchase common stock under the Stock Repurchase Program.
Accumulated Other Comprehensive Income (Loss)
The components of accumulated other comprehensive income (loss) were as follows:
| The components of accumulated other comprehensive mounts (1995) was as follows: | Currency Translation Adjustments | Net Unrealized Gains (Losses) on Cash Flow Hedges (e) | Minimum Pension Liability Adjustment (b) | Accumulated Other Comprehensive Income (Loss) |
|---|---|---|---|---|
| Balance, January 1, 2022 | 16 | $ (19) | $ (130) | $ (133) |
| Other comprehensive income (loss) before reclassifications | (46) | 57 | 11 | 22 |
| Gross (gains) losses reclassified | 9 | 5 | 14 | |
| Tax on (gains) losses reclassified | (2) | (2) | (4) | |
| (Gains) losses reclassified from accumulated other comprehensive income (loss), net of tax | _ | 7 | 3_ | 10 |
| Net current-period ather comprehensive income (loss) | (46) | 64 | 14 | 32 |
| Balance, December 31, 2022 | (30) | 45 | (116) | (101) |
| Other comprehensive income (loss) before reclassifications | 27 | 5 | (18) | 14 |
| Gross (gains) losses reclassified | (18) | 5 | (13) | |
| Tax on (gains) losses reclassified | 5_ | (1) | 4 | |
| (Gains) losses reclassified from accumulated other comprehensive income (loss), net of tax | _ | (13) | 4 | (9) |
| Net current-period other comprehensive income (loss) | 27 | (8) | (14) | 5 |
| Balance, December 31, 2023 | (3) | 37 | (130) | (96) |
| Other comprehensive income (loss) before reclassifications | (122) | 15 | 10 | (97) |
| Gross (gains) losses reclassified | (28) | 5 | (23) | |
| Tax on (gains) losses reclassified | 7 | (1) | 6 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 79)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the gross (gains) losses reclassified related to the minimum pension liability adjustment in 2023 was $5. This figure is part of the accumulated other comprehensive income (loss). It represents adjustments made to account for changes in pension liabilities.
The table outlines various components that contribute to the accumulated other comprehensive income (loss), including currency translation adjustments, net unrealized gains/losses on cash flow hedges, and the minimum pension liability adjustment. These adjustments reflect changes in the company's financial position that are not immediately recognized in net income but are recorded as part of equity.
For a prospective Budget franchisee, understanding these reclassifications is important as they reflect the overall financial health and stability of the company. While franchisees are not directly involved in managing these specific pension adjustments, the financial stability of the franchisor can impact the support and resources available to franchisees. It is advisable to review the complete financial statements and consult with a financial advisor to fully understand the implications of these figures.