What was the net current-period other comprehensive income (loss) related to currency translation adjustments for Budget in 2023?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
noome (1855) attributable to Avis Budget Group, Inc. | * | (1,021) | 1,002 | 2,104 | | Earnings (loss) per share | | | | | | Basic | $ | (51.23) | $ 42.57 | $ 58,41 | | Diluted | $ | (51.23) | $ 42.08 | $ 57.16 |
Avis Budget Group, Inc. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In millions)
| Year Ended December 31, | ||||
|---|---|---|---|---|
| 2024 | 2023 | 2022 | ||
| Net income (loss) | $ | (1,817) $ | 1,635 | $ 2,756 |
| Less: Net income (loss) attributable to non-controlling interests | 4 | 3 | (8) | |
| Net income (loss) attributable to Avis Budget Group, Inc. | (1,821) | 1,632 | 2,764 | |
| Other comprehensive income (loss), net of tax | ||||
| Currency translation adjustments: | (122) | 27 | (46) | |
| Currency translation adjustments, net of tax of $(19), $7 and $(11), respectively | (122) | 21 | (40) | |
| Cash flow hedges: | 15 | 5 | 57 | |
| Net unrealized holding gains (losses), net of tax of $(5), $(2), and $(20), respectively | (21) | (13) | 7 | |
| Reclassification of cash flow hedges to earnings, net of tax of $7, $5, and $(2), respectively | (21) | (.0) | • | |
| Minimum pension liability adjustment: | 10 | (18) | 11 | |
| Pension and post-retirement benefits, net of tax of $(4), $6, and $ |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 79)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the net current-period other comprehensive income related to currency translation adjustments for the year 2023 was $27 million. This figure represents the impact of changes in exchange rates on Budget's financial statements, specifically how the value of their assets and liabilities denominated in foreign currencies fluctuates when converted to U.S. dollars.
For a prospective Budget franchisee, understanding currency translation adjustments is important because it reflects the company's exposure to international markets and the potential volatility in their financial performance due to currency fluctuations. While franchisees primarily operate within a specific country, Budget's overall financial health can affect the resources and support available to them. A positive currency translation adjustment suggests favorable exchange rate movements, while a negative adjustment indicates unfavorable movements.
It's also worth noting that the currency translation adjustments are presented net of tax. This means that the impact of taxes on these adjustments has already been factored into the reported figure. Reviewing these figures over several years, as presented in the table, can provide a more comprehensive view of Budget's performance and its sensitivity to currency exchange rates. This information can help potential franchisees assess the stability and potential risks associated with investing in a Budget franchise.