What was Budget's net periodic cost (benefit) for the year ended 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, are recognized as a component of accumulated other comprehensive income (loss), net of tax.
The components of net periodic (benefit) cost consisted of the following:
tear Ended December 31, 2024 2023 2022 Service cost (a) $ · 3 28 $ 27 3 $ 5 7 16 Interest cost (b) (32) (30 3) (37) Expected return on plan assets (b) 5 - ` 5 5 Amortization of unrecognized amounts (b) * (11) Net periodic cost (benefit) $ 4 3 .
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 79)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the net periodic cost (benefit) for the year ended December 31, 2024, was $4 million. This figure is a result of several components, including service cost, interest cost, expected return on plan assets, and amortization of unrecognized amounts.
The FDD also notes that $3 million was included in operating expenses for the year ended December 31, 2024. This indicates how the net periodic cost is allocated within Budget's financial statements.
Understanding the components of pension costs and how they are recognized is crucial for assessing Budget's overall financial health and stability. Prospective franchisees should be aware of these costs as they can impact the company's profitability and, consequently, the value of their investment.