In Budget's financial statements, what is included within 'Other (income) expense, net'?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
ology applied and measurable inputs used, and the mathematical accuracy of the calculation.
/s/ DELOITTE & TOUCHE LLP New York, New York February 14, 2025
We have served as the Company's auditor since 1997.
Avis Budget Group, Inc. CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except per share data)
| Y | 11, | |||
|---|---|---|---|---|
| 2024 | 2023 | 2022 | ||
| Revenues | $ | 11,789 | $ 12,008 | $ 11,994 |
| Expenses | ||||
| Operating | 6,014 | 5,675 | 5,285 | |
| Vehicle depreciation and lease charges, net | 2,976 | 1,739 | 828 | |
| Selling, general and administrative | 1,352 | 1,408 | 1,348 | |
| Vehicle interest, net | 941 | 736 | 402 | |
| Non-vehicle related depreciation and amortization | 237 | 216 | 225 | |
| Interest expense related to corporate debt, net: | ||||
| Interest expense | 358 | 296 | 250 | |
| Early extinguishment of debt | 19 | 5 | _ | |
| Long-lived asset impairment and other related charges | 2,470 | _ | ||
| Restructuring and other related charges | 37 | 11 | 19 | |
| Transaction-related costs, net | 3 | 5 | 8 | |
| Other (income) expense, net | 9 | 3 | (7) | |
| Total expenses | 14,416 | 10,094 | 8,358 | |
| Income (loss) before income taxes | (2,627) | 1,914 | 3,636 | |
| Provision for (benefit from) income taxes | (810) | 279 | 880 | |
| Net income (loss) | (1,817) | 1,635 | 2,756 | |
| Less: Net income (loss) attributable to non-controlling interests | 3 | (8) | ||
| Net income |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 79)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the financial statement includes a line item for 'Other (income) expense, net.' For the years 2024, 2023 and 2022, this figure was $9 million, $3 million, and ($7) million, respectively. This line item reflects income or expenses that are not classified under the main revenue or expense categories, providing a more complete view of Budget's financial performance.
For a prospective franchisee, understanding the composition of this 'Other (income) expense, net' line is crucial. It can reveal gains or losses from activities outside Budget's core operations, such as gains from the sale of assets, currency exchange impacts, or one-time charges. These items can fluctuate and impact overall profitability, so it's important to understand what is driving these figures.
While the FDD provides the amounts for this line item over the past three years, it does not detail the specific components included within it. A prospective franchisee should ask Budget for a detailed breakdown of what makes up 'Other (income) expense, net' to fully understand the nature of these items and their potential impact on the company's financial results. This due diligence will help in assessing the stability and predictability of Budget's earnings.