What were the currency translation adjustments, net of tax, for Budget in 2022?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
noome (1855) attributable to Avis Budget Group, Inc. | * | (1,021) | 1,002 | 2,104 | | Earnings (loss) per share | | | | | | Basic | $ | (51.23) | $ 42.57 | $ 58,41 | | Diluted | $ | (51.23) | $ 42.08 | $ 57.16 |
Avis Budget Group, Inc. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In millions)
| Year Ended December 31, | ||||
|---|---|---|---|---|
| 2024 | 2023 | 2022 | ||
| Net income (loss) | $ | (1,817) $ | 1,635 | $ 2,756 |
| Less: Net income (loss) attributable to non-controlling interests | 4 | 3 | (8) | |
| Net income (loss) attributable to Avis Budget Group, Inc. | (1,821) | 1,632 | 2,764 | |
| Other comprehensive income (loss), net of tax | ||||
| Currency translation adjustments: | (122) | 27 | (46) | |
| Currency translation adjustments, net of tax of $(19), $7 and $(11), respectively | (122) | 21 | (40) | |
| Cash flow hedges: | 15 | 5 | 57 | |
| Net unrealized holding gains (losses), net of tax of $(5), $(2), and $(20), respectively | (21) | (13) | 7 | |
| Reclassification of cash flow hedges to earnings, net of tax of $7, $5, and $(2), respectively | (21) | (.0) | • | |
| Minimum pension liability adjustment: | 10 | (18) | 11 | |
| Pension and post-retirement benefits, net of tax of $(4), $6, and $ |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 79)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the currency translation adjustments, net of tax, for the year 2022 were $(40). This figure is part of the broader 'Other comprehensive income (loss), net of tax' section within Budget's financial statements. Currency translation adjustments reflect the impact of changes in exchange rates on Budget's financial results, especially when the company has international operations or subsidiaries. The net of tax value indicates that the adjustments have been accounted for after considering any applicable tax effects.
For a prospective Budget franchisee, understanding currency translation adjustments is important if they plan to operate in or interact with international markets. These adjustments can impact the overall profitability and financial health of Budget, which in turn can affect the stability and support available to franchisees. The negative value of $(40) for 2022 suggests that currency fluctuations had an unfavorable impact on Budget's financial position during that year.
It's worth noting that currency translation adjustments are just one component of Budget's comprehensive income, which provides a more complete picture of the company's financial performance than net income alone. Franchisees should review these figures in the context of Budget's overall financial statements to assess the potential risks and opportunities associated with investing in a Budget franchise.