Does the table provide a summary of Budget's assets?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
t benefits to earnings, net of tax of $(1), $(1), and $(2), respectively | | 4 | 4 | | | | | (114) | 5 | 32 | | Total comprehensive income (loss) attributable to Avis Budget Group, Inc. | $ | (1,935) $ | 1,637 | $ 2,796 |
Avis Budget Group, inc. CONSOLIDATED BALANCE SHEETS (in millions, except par value)
| (In millions, except par value) | • | |
|---|---|---|
| As of December 2024 2027 | 2023 | |
| Assets Current assets: | ||
| Current assets. Cash and cash equivalents | $ 534 $ | 555 |
| Casil and Casil equivalents Receivables (net of allowance for doubtful accounts of $96 and $87, respectively) | 838 | 900 |
| Other current assets | 662 | 684 |
| Total current assets | 2,034 | 2,139 |
| Property and equipment, net | 697 | 719 |
| Operating lease right-of-use assets | 3,057 | 2,654 |
| Deferred income taxes | 1,786 | 1,868 |
| Goodwill | 1,071 | 1,099 670 |
| Other intangibles, net | 601 422 | 441 |
| Other non-current assets | 9,668 | 9,590 |
| Total assets exclusive of assets under vehicle programs | 9,000 | 3,350 |
| Assets under vehicle programs: | 60 | 85 |
| Program cash | 17,619 | 21,240 |
| Vehicles, net | 386 | 443 |
| Receivables from vehicle manufacturers and other | 1,308 | 1,211 |
| Investment in Avis Budget Rental Car Funding (AESOP) LLC—related party | 19.373 | 22,979 |
| $ 29,041 $ | 32,569 | |
| Total assets | ||
| Liabilities and stockholders' equity | ||
| Current liabilities: | $ 2,700 $ | 2,627 |
| Accounts payable and other current liabilities | $ 2,700 $ 20 | 32 |
| Short-term debt and current portion of long-term debt | 2,720 | 2,659 |
| Total current liabilities | ||
| Long-term debt | 5,373 | 4,791 |
| Long-term operating lease ilabilities | 2,484 | 2,117 |
| Other non-current liabilities | 470 | 528 |
| Total liabilities exclusive of liabilities under vehicle programs | 11,047 | 10,095 |
| Liabilities under vehicle programs: | 2.452 | 3.496 |
| Debt | 3,453 | 15.441 |
| Debt due to Avis Budget Rental Car Funding (AESOP) LLC-related party | 14,083 2,442 | 3,418 |
| Deferred income taxes | 333 | 462 |
| Other | 20,311 | 22,817 |
| Commitments and contingencies (Note 15) | ||
| Stockholders' equity: | ||
| Preferred stock, $0.01 par value—authorized 10 shares; none issued and outstanding, in each period | - | _ |
| Common stock, $0.01 par value—authorized 250 shares; issued 137 shares, in each period | 1 | 1 |
| Additional paid-in capital | 6,620 | 6,634 3,854 |
| Retained earnings | 2,029 | 3,854 |
| Accumulated other comprehensive loss | (210) (10.767) | (10,742) |
| Treasury stock, at cost—102 shares, in e |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 79)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the provided table summarizes the company's assets, liabilities, and stockholders' equity as of December 2024 and 2023. The table presents a detailed breakdown of Budget's financial position, including current assets, property and equipment, operating lease right-of-use assets, deferred income taxes, goodwill, other intangibles, and other non-current assets. It also separates assets under vehicle programs, such as program cash, vehicles, receivables from vehicle manufacturers, and investment in Avis Budget Rental Car Funding (AESOP) LLC. All values are expressed in millions of dollars.
For a prospective Budget franchisee, this information offers insight into the financial health and structure of the company. Understanding the composition of Budget's assets can help franchisees assess the stability and potential risks associated with investing in the franchise. The distinction between assets exclusive of vehicle programs and assets under vehicle programs is particularly relevant, as it highlights the importance of vehicle-related financing in Budget's overall financial strategy.
The table also includes a summary of Budget's liabilities, covering accounts payable, short-term debt, long-term debt, operating lease liabilities, and other non-current liabilities. Additionally, it details liabilities under vehicle programs, such as debt and deferred income taxes. The presentation of stockholders' equity includes preferred stock, common stock, additional paid-in capital, retained earnings, accumulated other comprehensive loss, and treasury stock.
Overall, the table provides a comprehensive overview of Budget's financial position, enabling potential franchisees to make informed decisions based on the company's asset and liability structure. Reviewing these financial statements is a crucial step in evaluating the franchise opportunity and understanding the financial obligations and potential returns associated with investing in a Budget franchise.