What were the deductions for the allowance for doubtful accounts for Budget in 2024?
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 | |------------------------------------------
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 for the year ended December 31, 2024, were $75 million. This figure is part of a broader table presenting the allowance for doubtful accounts over three years.
The allowance for doubtful accounts is a contra-asset account that reduces the total amount of accounts receivable reported on a company's balance sheet. It represents the amount of receivables that Budget estimates it will not be able to collect. Deductions from this allowance typically occur when specific accounts are written off as uncollectible.
For a prospective Budget franchisee, understanding these financial statement details is crucial. The allowance for doubtful accounts can provide insights into the creditworthiness of Budget's customers and the effectiveness of its collection efforts. While this specific figure relates to the overall company financials, it demonstrates the importance of sound financial management and risk assessment within the Budget franchise system.