What were the lease charges for Budget for the year ending December 31, 2023?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
erms. We believe that, based on current market conditions, the net proceeds from the sale of these vehicles at the end of their lease terms will equal or exceed their net book values and therefore have not recorded a liability related to guaranteed residual values.
The components of lease expense are as follows:
| The components of lease expense are as follows: | | Year E | Ended December 31, | | | |------------------------------------------------------------------------------------------------------------------------------------|------|-------------------------------|----------------------------|-----------------|----------------------------| | | 2024 | | 2023 | | 2022 | | Property leases Operating lease expense Variable lease expense Sublease income Total property lease expense (a) | $ | 935 $ 343 (6) 1,272 $ | 860 402 (6) 1,256 | $ $ | 703 520 (5) 1,218 | | Vehicle leases Finance lease expense: Amortization of ROU assets (b) Interest on lease liabilities (c) Operating lease expense (b) | $ | 27 $ 7 151 185 $ | 28 6 167 201 | $ | 29 3 138 170 | Primarily included in operating expenses and for the year ended December 31, 2022, includes $(9) million of minimum annual guaranteed rent in excess of concession fees as defined in our rental concession agreements. Included in vehicle depreciation and lease charges, net.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 79)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the components of lease expenses for the year ending December 31, 2023, included property leases and vehicle leases. For property leases, the operating lease expense was $860, the variable lease expense was $402, and sublease income was ($6), resulting in a total property lease expense of $1,256.
For vehicle leases, the finance lease expense included amortization of ROU assets of $6 and interest on lease liabilities of $167. The operating lease expense for vehicles was $201.
Supplemental cash flow information related to leases shows cash payments for lease liabilities within operating activities. For the year ended December 31, 2023, cash payments for property operating leases were $838, vehicle finance leases were $6, and vehicle operating leases were $167. Non-cash activities, such as increases in ROU assets in exchange for lease liabilities, included property operating leases of $1,079, vehicle finance leases of $118, and vehicle operating leases of $191.