What was the amount of Budget's non-controlling interests at the end of 2022?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
| Commo | n Stock | Additional Pald-in | Retained Earnings | Accumulated Other | Treasur | y Sto | Stockholders' Equity Attributable to Avis Budget | Non-controlling Interests | Total Stoci | cholders' Equity | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Shares | Amou | int | Capital | . ( | (Accumulated Deficit) | (Loss) | Shares | _ | Amount | Group, Inc. $ (220) | ÷ | 11 | 3 | (209) | ||
| Balance at January 1, 2022 | 137.1 | $ | 1 | $ 6,676 | $ | (185) | $ | (133) | (81,2) | $ | (6,579) | $ (220) | • | • | . | |
| Comprehensive Income: | _ | 2.764 | _ | _ | _ | 2.764 | (8) | 2,756 32 | ||||||||
| Net income | _ | _ | _ | _ | 32 | _ | - | 32 | _ | 2,789 | ||||||
| Other comprehensive income | _ | _ | 2,784 | 32 | 2,796 | (8) | 2,700 | |||||||||
| Total comprehensive income | _ | _ | 24 | _ | _ | _ | _ | 24 | _ | (36) | ||||||
| Contributions from non-controlling interests | _ | (34) | _ | _ | 0.3 | (2) | (38) | (3.267) |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 79)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the balance of non-controlling interests at December 31, 2022, was reported as $(703) million. This figure represents the portion of equity in Budget's subsidiaries that is not owned by the parent company, Avis Budget Group, Inc. In simpler terms, it reflects the ownership stake held by minority shareholders in Budget's consolidated entities.
For a prospective franchisee, understanding non-controlling interests is crucial because it provides insight into the financial structure and ownership dynamics of Budget. While franchisees are not directly involved in these high-level financial aspects, the stability and financial health of the parent company can impact the support, resources, and brand reputation available to franchisees. A significant change in non-controlling interests could signal shifts in the company's strategic direction or financial performance, although this specific figure alone does not provide a complete picture.
It's important to note that this figure is part of a larger financial statement and should be analyzed in conjunction with other financial metrics to gain a comprehensive understanding of Budget's financial position. Franchisees should focus on key performance indicators directly related to the franchise system, such as revenue trends, marketing support, and operational efficiencies, to assess the potential success of their investment. However, awareness of the overall financial health of the parent company is always beneficial.