What currency adjustments are included in the 'Other Adjustments' for Budget?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
ed average interest rate of 8.01%. These notes were issued under previously outstanding series of debt.
In February 2025, we borrowed $500 million under a floating rate term loan due December 2025, which is part of our senior revolving credit facilities.
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Schedule II – Valuation and Qualifying Accounts
| (in millions) Description | Balance of | at Beginning Period | Expe | nse (Benefit) | Other Adjustments (a) | _ | Deductions | Balance at End of Period |
|---|---|---|---|---|---|---|---|---|
| Allowance for Doubtful Accounts: Year Ended December 31, 2024 2023 2022 | 87 | $ | 87 | $ (3) |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 79)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the 'Other Adjustments' primarily consist of currency translation adjustments. This information is found in the context of the allowance for doubtful accounts and tax valuation allowance. For example, when looking at the allowance for doubtful accounts, the table shows figures for the years ended December 31, 2024, 2023, and 2022. The 'Other Adjustments' column for these years includes currency translation adjustments.
For a prospective Budget franchisee, this means that the financial statements may be affected by fluctuations in currency exchange rates, particularly if the franchisee operates internationally or deals with foreign transactions. These currency translation adjustments are reflected in the allowance for doubtful accounts and tax valuation allowance, which can impact the overall financial performance of the franchise.
It is important for franchisees to understand how currency fluctuations can affect their financial results and to consider this factor when making financial projections and managing their business. Franchisees should consult with financial advisors to better understand the implications of currency translation adjustments on their specific circumstances.