What were the employer contributions to Budget's pension plans as of December 31, 2024?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
y. For the year ended December 31, 2022, $1 million was included in selling, general and administrative
expenses. (b) Included in selling, general and administrative expenses.
Net funded status
We use a measurement date of December 31st for our pension plans. The funded status of the pension plans were as follows:
| | As of December 31, | | | | | | | |-------------------------------------------------------------------------------------|--------------------|--------------------|-----------|--|--|--|--| | | 20 | | 2023 | | | | | | Change in Benefit Obligation | $ | 620 $ | 575 | | | | | | Benefit obligation at end of prior year | • | 3 | 3 | | | | | | Service cost | | 28 | 27 | | | | | | Interest cost | | (43) | 30 | | | | | | Actuarial (gain) loss | | (1) | _ | | | | | | Plan amendments | | (11) | 15 | | | | | | Currency translation adjustment | | (31) | (30) | | | | | | Net benefits paid | $ | 565 $ | 620 | | | | | | Benefit obligation at end of current year | | | | | | | | | Change in Plan Assets | _ | ^ | E14 | | | | | | Fair value of assets at end of prior year | $ | 540 $ | 514 35 | | | | | | Actual return on plan assets | | 3 | 6 | | | | | | Employer contributions | | 4 | 15 | | | | | | Currency translation adjustment | | (6) | (30) | | | | | | Net benefits paid | | (31) | 540 | | | | | | Fair value of assets at end of current year | $ | 510 $ | 540 | | | | | | Amounts recognized in the statement of financial position consist of the following: | | As of December 31, | | | | | | | Funded Status | 20 | )24 | 2023 | | | | | | Classification of net balance sheet assets (liabilities): | : | | | | | | | | Non-current assets | $ | 39 $ | 24 | | | | | | Current liabilities | | (4) | (4) | | | | | | Non-current liabilities | | (90) | (100) | | | | | | HOLL ONLINE MADRICO | c | (55) $ | (80) | | | | | (80)
The following assumptions were used to determine pension obligations and pension co
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 79)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, employer contributions to the company's pension plans were detailed in Item 21, which covers the financial statements. The document outlines changes in plan assets, including employer contributions. As of December 31, 2024, Budget's employer contributions to its pension plans totaled $4 million. In comparison, the employer contributions as of December 31, 2023, were $15 million.
In addition to the employer contributions to the pension plans, Budget also contributes to multiemployer plans under collective-bargaining agreements. For the year ended December 31, 2024, Budget contributed $10 million to these multiemployer plans. This is the same amount contributed in 2023. In 2022, Budget contributed $8 million to multiemployer plans.
It is important to note that Budget also expects to contribute approximately $3 million to the plans in 2025. These contributions are part of Budget's overall strategy for managing its defined benefit pension plans, which are primarily invested in mutual funds. The value of these investments can fluctuate due to market risks, potentially affecting the amounts reported in Budget's financial statements.