What is the title of the person at Budget who assesses performance and allocates resources?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
hicle programs Vehicle-backed debt due to Avis Budget Rental Car Funding Vehicle-backed debt Interest rate swaps and interest rate caps (ii) | $ 14,083 | $ 14,154 | $ 15,441 | 3,435 | | | 3,441 | 3,469 | 3,422 | | | | 12 | 12 | 74 | |
(e) Derivatives in a liability position.
21. Segment Information
Our chief executive officer who also serves as our chief operating decision-maker ("CODM") assesses performance and allocates resources based upon the separate financial information of our operating segments. We aggregate certain of our operating segments into our reportable segments. In identifying our reportable segments, we also consider the management structure of the organization, the nature of services provided by our operating segments, the geographical areas and economic characteristics in which the segments operate, and other relevant factors.
Our CODM evaluates the operating results of each of our reportable segments based upon revenues and Adjusted EBITDA, which we define as income (loss) from continuing operations before non-vehicle related depreciation and amortization; long-lived asset impairment and other related charges; restructuring and other related charges; early extinguishment of debt costs; non-vehicle related interest; transaction-related costs, net; legal matters, net, which includes amounts recorded in excess of $5 million, related primarily to unprecedented self-insurance reserves for allocated loss adjustment expense, class action lawsuits and personal injury matter
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 79)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the individual who assesses performance and allocates resources is the chief executive officer, who also serves as the chief operating decision-maker (CODM). This person uses the separate financial information of Budget's operating segments to make these assessments and allocations.
For a prospective Budget franchisee, this means that the overall financial performance of the Budget franchise system is evaluated, and resources are allocated, at the highest level of the company. The CODM considers various factors, including the management structure, the nature of services provided, geographical areas, and economic characteristics of the segments.
The CODM evaluates the operating results of each reportable segment based on revenues and Adjusted EBITDA. Adjusted EBITDA is defined as income (loss) from continuing operations before non-vehicle related depreciation and amortization; long-lived asset impairment and other related charges; restructuring and other related charges; early extinguishment of debt costs; non-vehicle related interest; transaction-related costs, net; legal matters, net, which includes amounts recorded in excess of $5 million, related primarily to unprecedented self-insurance reserves for allocated loss adjustment expense, class action lawsuits and personal injury matters; non-operational charges related to shareholder activits activity, which includes third-party advisory, legal and other professional fees; COVID-19 charges, net; cloud computing costs; other (income) expense, net; severe weather-related damages in excess of $5 million, net of insurance proceeds; and income taxes. This metric is used internally by Budget's management and is also provided to investors to allow them to assess Budget's operations and financial condition on the same basis as management.