What were the deductions for the allowance for doubtful accounts for Budget in 2022, expressed in millions of dollars?
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 |
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Source: Item 21 — FINANCIAL STATEMENTS (FDD page 79)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the deductions for the allowance for doubtful accounts in 2022 were $86 million. This figure reflects the amount that Budget wrote off or otherwise reduced from its allowance for doubtful accounts during that year. The allowance for doubtful accounts is a contra-asset account used to estimate the amount of accounts receivable that a company does not expect to collect.
For a prospective Budget franchisee, understanding these figures is crucial for assessing the financial health and stability of the company. Deductions from the allowance for doubtful accounts can indicate the effectiveness of Budget's credit and collection policies. Higher deductions might suggest that Budget is having difficulty collecting outstanding debts, which could impact its cash flow and profitability.
It's important to note that these figures are presented in millions of dollars, providing a high-level overview of Budget's financial performance. Franchisees should consider these numbers in conjunction with other financial metrics and industry benchmarks to gain a comprehensive understanding of the company's financial position and risk profile. Reviewing these figures over several years, as presented in the table, can also reveal trends and potential areas of concern or improvement.