What is the specific date for which Budget's derivative instrument notional values are reported?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
| As of Dec | emper 31, | |
|---|---|---|
| 2024 | 2023 | |
| a de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de la compansa de l | $ 1,704 | $ 1,407 |
| Foreign exchange contracts | 12.014 | 15,146 |
| Interest rate caps (*) | 750 | 750 |
| Interest rate swaps | , |
Represents $8.9 billion of interest rate caps sold and approximately $3.1 billion of interest rate caps purchased at December 31, 2024 and $10.3 billion of int
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 79)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the derivative instrument notional values are reported as of December 31, 2024, and December 31, 2023. Specifically, the document mentions interest rate caps sold and purchased as of these dates. For instance, as of December 31, 2024, Budget had $8.9 billion in interest rate caps sold and approximately $3.1 billion in interest rate caps purchased. As of December 31, 2023, the company had $10.3 billion in interest rate caps sold and approximately $4.9 billion in interest rate caps purchased.
It's important to note that these figures exclude interest rate caps purchased by Avis Budget Rental Car Funding subsidiary, which were $5.8 billion and $5.9 billion as of December 31, 2024, and 2023, respectively, because the subsidiary is not consolidated by Budget. This distinction is crucial for prospective franchisees to understand the scope and limitations of the reported derivative instrument values.
For a prospective Budget franchisee, this information provides insight into the company's financial risk management strategies, particularly regarding interest rates. Understanding the volume of interest rate caps Budget uses can help gauge the company's exposure to interest rate fluctuations and its efforts to mitigate those risks. This can be a valuable factor in assessing the overall financial stability and risk profile of the franchise.