What amount was included in Budget's selling, general and administrative expenses related to net periodic (benefit) cost for the year ended December 31, 2022?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
cost consisted of the following:
tear Ended December 31, 2024 2023 2022 Service cost (a) $ · 3 28 $ 27 3 $ 5 7 16 Interest cost (b) (32) (30 3) (37) Expected return on plan assets (b) 5 - ` 5 5 Amortization of unrecognized amounts (b) * (11) Net periodic cost (benefit) $ 4 3 .
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 79)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, for the year ended December 31, 2022, $1 million was included in selling, general and administrative expenses related to net periodic benefit cost. This figure is part of the broader disclosure regarding Budget's defined benefit pension plans. These plans provide benefits based on an employee's years of service and compensation.
This means that $1 million of the total expenses categorized as 'selling, general, and administrative' for 2022 was specifically allocated to cover the costs associated with these pension plans. These costs can include items such as interest cost, expected return on plan assets, and amortization of unrecognized amounts.
For a prospective franchisee, this information provides insight into Budget's financial obligations and how they manage employee benefits. While this specific expense may not directly impact day-to-day franchise operations, it contributes to the overall financial health and stability of the company. Understanding these aspects of Budget's financial structure can help a franchisee assess the long-term viability of the franchise system.