What was the expense (benefit) for the allowance for doubtful accounts for Budget in 2023, 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 |
|---|
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 79)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the expense (benefit) for the allowance for doubtful accounts for the year ended December 31, 2023, was $1 million. This figure represents the change in the estimated amount of uncollectible accounts receivable during that year.
For a prospective Budget franchisee, understanding the allowance for doubtful accounts is crucial. It reflects the company's ability to manage credit risk and collect outstanding payments. A higher expense might indicate a more conservative approach to recognizing revenue or potential issues with customer payments. Conversely, a benefit suggests improved collections or a more optimistic outlook on receivables.
Franchisees should monitor these figures to gauge the financial health and stability of Budget. While this specific figure relates to the overall company, it provides insight into how Budget manages its financial risks and obligations, which can indirectly affect franchisees through brand reputation and overall system performance.