Does the table provide a summary of Budget's expenses?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
ology applied and measurable inputs used, and the mathematical accuracy of the calculation.
/s/ DELOITTE & TOUCHE LLP New York, New York February 14, 2025
We have served as the Company's auditor since 1997.
Avis Budget Group, Inc. CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except per share data)
| Y | 11, | |||
|---|---|---|---|---|
| 2024 | 2023 | 2022 | ||
| Revenues | $ | 11,789 | $ 12,008 | $ 11,994 |
| Expenses | ||||
| Operating | 6,014 | 5,675 | 5,285 | |
| Vehicle depreciation and lease charges, net | 2,976 | 1,739 | 828 | |
| Selling, general and administrative | 1,352 | 1,408 | 1,348 | |
| Vehicle interest, net | 941 | 736 | 402 | |
| Non-vehicle related depreciation and amortization | 237 | 216 | 225 | |
| Interest expense related to corporate debt, net: | ||||
| Interest expense | 358 | 296 | 250 | |
| Early extinguishment of debt | 19 | 5 | _ | |
| Long-lived asset impairment and other related charges | 2,470 | _ | ||
| Restructuring and other related charges | 37 | 11 | 19 | |
| Transaction-related costs, net | 3 | 5 | 8 | |
| Other (income) expense, net | 9 | 3 | (7) | |
| Total expenses | 14,416 | 10,094 | 8,358 | |
| Income (loss) before income taxes | (2,627) | 1,914 | 3,636 | |
| Provision for (benefit from) income taxes | (810) | 279 | 880 | |
| Net income (loss) | (1,817) | 1,635 | 2,756 | |
| Less: Net income (loss) attributable to non-controlling interests | 3 | (8) | ||
| Net income |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 79)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the financial statements include a summary of expenses. The table provides a breakdown of Budget's expenses for the years 2022, 2023, and 2024. Total expenses include several categories such as operating expenses, vehicle depreciation and lease charges, selling, general and administrative costs, vehicle interest, non-vehicle related depreciation and amortization, interest expense related to corporate debt, early extinguishment of debt, long-lived asset impairment and other related charges, restructuring and other related charges, transaction-related costs, and other income/expense.
In 2024, Budget's total expenses amounted to $14,416 million, compared to $10,094 million in 2023 and $8,358 million in 2022. The most significant expense categories in 2024 were operating expenses at $6,014 million and vehicle depreciation and lease charges at $2,976 million. Long-lived asset impairment and other related charges also contributed a substantial $2,470 million.
Prospective franchisees should note the fluctuations in these expenses over the three years, particularly the increase in total expenses in 2024. Understanding these expense components is crucial for assessing the financial health and profitability of Budget. Reviewing these figures can help potential franchisees to understand where Budget allocates its resources and identify potential areas for cost management and efficiency improvements within their own franchise operations.