What was the currency translation adjustment for Budget's pension plans as of December 31, 2023?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
y. For the year ended December 31, 2022, $1 million was included in selling, general and administrative
expenses. (b) Included in selling, general and administrative expenses.
Net funded status
We use a measurement date of December 31st for our pension plans. The funded status of the pension plans were as follows:
| As of December 31, | |||||||
|---|---|---|---|---|---|---|---|
| 20 | 2023 | ||||||
| Change in Benefit Obligation | $ | 620 $ | 575 | ||||
| Benefit obligation at end of prior year | • | 3 | 3 | ||||
| Service cost | 28 | 27 | |||||
| Interest cost | (43) | 30 | |||||
| Actuarial (gain) loss | (1) | _ | |||||
| Plan amendments | (11) | 15 | |||||
| Currency translation adjustment | (31) | (30) | |||||
| Net benefits paid | $ | 565 $ | 620 | ||||
| Benefit obligation at end of current year | |||||||
| Change in Pl |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 79)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, there are two currency translation adjustments related to pension plans as of December 31, 2023. The first adjustment, found within the Change in Benefit Obligation section, is ($30). The second adjustment, found in the Change in Plan Assets section, is also ($30).
These figures represent the impact of currency fluctuations on Budget's pension obligations and assets. A negative adjustment indicates that currency exchange rates decreased the value of these obligations and assets when translated into U.S. dollars.
For a prospective Budget franchisee, these adjustments are part of the broader financial picture of the company. While franchisees are not directly responsible for managing these pension plans, the financial health of the parent company, including its pension obligations, can affect the overall stability and resources available to support the franchise system. Understanding these adjustments helps franchisees assess the financial risks and stability associated with investing in a Budget franchise.