What aspects of the fair value estimates for impacted vehicles were tested for Budget?

According to Budget's 2025 Franchise Disclosure Document, the audit procedures related to the impairment of long-lived assets of United States vehicles included testing the fair value estimates for the impacted vehicles. With the assistance of fair value specialists, the reasonableness of the valuation methodology applied and fair value determined for vehicles was evaluated by testing the methodology applied and measurable inputs used, as well as the mathematical accuracy of the calculation.

This indicates that the auditors focused on both the methods Budget used to determine the fair value of its vehicles and the accuracy of the data and calculations involved. For a prospective franchisee, this suggests that Budget's vehicle valuation processes are subject to scrutiny and are expected to adhere to recognized standards.

The involvement of fair value specialists highlights the complexity and judgment involved in assessing vehicle values, particularly when estimating potential impairments. This rigorous testing aims to ensure that Budget's financial statements accurately reflect the value of its assets, which is crucial for investors and potential franchisees alike. Franchisees should be aware of these valuation methods, as they can impact decisions related to fleet management and financial performance.