Regarding Budget's restructuring expenses, what specific cost optimization initiatives were associated with restructuring payments or utilization in Brazil under T19?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
In 2019, we initiated a restructuring plan to exit our operations in Brazil by closing rental facilities, disposing of assets and terminating personnel ("Brazil"). We also initiated a restructuring plan in that same year to drive global efficiency by improving processes and consolidating functions, and to create new objectives and strategies for our truck rental operations in the United States by reducing headcount, large vehicles and rental locations ("T19"). These initiatives are complete.
The following tables summarize the changes to our restructuring-related liabilities and identify the amounts recorded within our reportable segments for restructuring charges and corresponding payments and utilizations:
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 79)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, in 2019 (referred to as T19), Budget initiated a restructuring plan aimed at driving global efficiency. This plan involved improving processes and consolidating functions. Additionally, Budget created new objectives and strategies for its truck rental operations in the United States, which included reducing headcount, the number of large vehicles, and rental locations. The FDD states that these initiatives are complete.
Specifically regarding Brazil, in 2019, Budget also initiated a restructuring plan to exit its operations in Brazil. This involved closing rental facilities, disposing of assets, and terminating personnel.
The provided tables summarize changes to Budget's restructuring-related liabilities and identify amounts recorded within their reportable segments for restructuring charges and corresponding payments and utilizations.