What was the balance of Budget's restructuring-related liabilities as of December 31, 2023?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
ucing headcount, large vehicles and rental locations ("T19"). These initiatives are complete.
The following tables summarize the changes to our restructuring-related liabilities and identify the amounts recorded within our reportable segments for restructuring charges and corresponding payments and utilizations:
| utilizations: | Personnel | Facility | m | |
|---|---|---|---|---|
| Related | Related | Other | Total 10 | |
| Balance at January 1, 2022 | $ 7 | $ 2 | $ 1 | $ 10 |
| Restructuring expense: | • | _ | 9 | |
| Cost Optimization | 9 | _ | 3 | |
| T21 | 3 | 1 | 1 | |
| Brazil | _ | _ | ||
| Restructuring payment/utilization: | (2) | _ | (1) | (7) |
| Cost Optimization | (6) (8) | (1) | (9) | |
| T21 | (1) | |||
| 2020 Optimization | (1) | (1) | (1) | |
| Brazil | _ | (1) | (1) | |
| T19 | 5 4 | • | 5 | $ 4 |
| Balance as of December 31, 2022 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 79)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the balance of restructuring-related liabilities as of December 31, 2023, is detailed in the provided financial statements. The table outlines the changes in these liabilities over time, including expenses and payments/utilizations related to various restructuring initiatives such as Cost Optimization and Brazil. The ending balance for December 31, 2023, is specified within this table.
The table shows the breakdown of these liabilities across different categories like Personnel and Facility related costs. It tracks how the initial balance at the beginning of 2022 changes due to restructuring expenses and subsequent payments or utilizations. This provides a clear view of how Budget manages and resolves its restructuring obligations.
For a prospective franchisee, understanding these liabilities is crucial as they can impact the overall financial health and stability of Budget. While the specific figures are provided in the table, it's important to note the context of these liabilities within Budget's broader financial strategy. Franchisees should consider how these restructuring activities might affect the brand's performance and future growth prospects.