What were the deductions for the Allowance for Doubtful Accounts for Budget for the year ended December 31, 2023?
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 for the year ended December 31, 2023, were $ (86) million. This figure represents the amount written off or otherwise removed from the allowance during that year.
The allowance for doubtful accounts is a contra-asset account used to estimate the amount of accounts receivable that a company, like Budget, may not be able to collect. Deductions from this allowance typically occur when specific accounts are deemed uncollectible and are written off.
For a prospective Budget franchisee, understanding these figures can provide insight into the credit risk associated with Budget's receivables. While franchisees may not directly deal with these specific corporate-level accounts, it reflects the overall financial management and risk assessment practices within the Budget system.