Does the provided text for Budget specify any dependencies related to the financial statement?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
Amounts in this table exclude derivatives issued by Avis Budget Rental Car Funding, as it is not consolidated by us; however, certain amounts related to the derivatives held by Avis Budget Rental Car Funding are included within accumulated other comprehensive income (loss), as discussed in Note 16 – Stockholders' Equity.
Included in other non-current abselts or other non-current liabilities.
Included in other current assets or other current liabilities.
Included in assets under vehicle programs or liabilities under vehicle programs or liabilities.
The effects of derivatives recognized in our Consolidated Financial Statements are as follows:
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 79)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the financial statements of Avis Budget Group, Inc. have dependencies related to Avis Budget Rental Car Funding (AESOP) LLC. The financial data of vehicle programs are presented separately because the assets are funded through debt issuance, and the cash generated by these assets is used to repay the debt's principal and interest. This segregation is deemed appropriate because the debt's repayment source is the asset realization.
Specifically, the financial statements exclude derivatives issued by Avis Budget Rental Car Funding because it is not consolidated by Avis Budget Group, Inc. However, certain amounts related to the derivatives held by Avis Budget Rental Car Funding are included within accumulated other comprehensive income (loss), as discussed in Note 16 – Stockholders' Equity.
Furthermore, the assets of AESOP Leasing, included within assets under vehicle programs (excluding the investment in Avis Budget Rental Car Funding (AESOP) LLC—related party) are restricted and can only be used to repay AESOP Leasing liabilities or purchase new vehicles. The creditors of AESOP Leasing and Avis Budget Rental Car Funding have no recourse to Avis Budget Group, Inc.'s general credit. Avis Budget Group, Inc. periodically provides Avis Budget Rental Car Funding with non-contractually required support, in the form of equity and loans, to serve as additional collateral for the debt issued by Avis Budget Rental Car Funding.
Because Avis Budget Rental Car Funding is not consolidated by Avis Budget Group, Inc., its results of operations and cash flows are not reflected within their financial statements. AESOP Leasing's loan obligations to Avis Budget Rental Car Funding are reflected as related to the loan from Avis Budget Rental Car Funding.