As of what date are the notional values of Budget's derivative instruments provided?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
| As of Dec | emper 31, | |
|---|---|---|
| 2024 | 2023 | |
| a de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de l | $ 1,704 | $ 1,407 |
| Foreign exchange contracts | 12.014 | 15,146 |
| Interest rate caps (*) | 750 | 750 |
| Interest rate swaps | , |
Represents $8.9 billion of interest rate caps sold and approximately $3.1 billion of interest rate caps purchased at December 31, 2024 and $10.3 billion of int
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 79)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the notional values of their derivative instruments are provided as of December 31, 2024, and December 31, 2023. Specifically, Budget had $8.9 billion of interest rate caps sold and approximately $3.1 billion of interest rate caps purchased as of December 31, 2024. As of December 31, 2023, they had $10.3 billion of interest rate caps sold and approximately $4.9 billion of interest rate caps purchased.
It is important to note that these amounts exclude interest rate caps purchased by Avis Budget Rental Car Funding, Budget's subsidiary, which were $5.8 billion and $5.9 billion as of December 31, 2024, and 2023, respectively. This exclusion is because the subsidiary is not consolidated by Budget.
For a prospective franchisee, this information provides a snapshot of Budget's financial risk management strategies related to interest rates. Understanding the scale of these derivative holdings can offer insights into how Budget manages its exposure to interest rate fluctuations, which could indirectly affect franchisees through various financial policies and operational decisions.