What was the interest cost for Budget's pension plans as of December 31, 2024?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
efit pension plans is recognized on the Consolidated Balance Sheets and the gains or losses and prior service costs or credits that arise during the period, but are not recognized as components of net periodic benefit cost, ar
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 79)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the interest cost for their pension plans as of December 31, 2024, was $32 million. This figure is a component of the net periodic (benefit) cost, which also includes service cost, expected return on plan assets, and amortization of unrecognized amounts. Understanding these costs can provide insight into Budget's overall financial health and how they manage their employee benefits.
The net periodic cost (benefit) for the year ended December 31, 2024, was $4 million. This indicates that the total cost, after factoring in interest, service, return on assets, and amortization, was a net expense for that year. For comparison, the interest cost for the years ended December 31, 2023, and 2022 were $30 million and $37 million, respectively.
Prospective franchisees should be aware that these pension-related costs are part of Budget's overall financial obligations. While franchisees are not directly responsible for these costs, they reflect the financial stability and management practices of the company. Reviewing these figures over several years, as presented in the FDD, can help potential franchisees assess the long-term financial health of Budget.