For what years is the allowance for doubtful accounts detailed in the Budget FDD?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
ed average interest rate of 8.01%. These notes were issued under previously outstanding series of debt.
In February 2025, we borrowed $500 million under a floating rate term loan due December 2025, which is part of our senior revolving credit facilities.
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Schedule II – Valuation and Qualifying Accounts
| (in millions) Description | Balance of | at Beginning Period | Expe | nse (Benefit) | Other Adjustments (a) | _ | Deductions | Balance at End of Period |
|---|---|---|---|---|---|---|---|---|
| Allowance for Doubtful Accounts: Year Ended December 31, 2024 2023 2022 | 87 | $ | 87 | $ (3) |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 79)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the allowance for doubtful accounts is detailed for the years ended December 31, 2024, 2023, and 2022. This information is part of Budget's financial statements. The document provides data related to the balance at the beginning of the period, expense (benefit), other adjustments, deductions, and the balance at the end of the period for each of these years. All figures are represented in millions of dollars.
For a prospective Budget franchisee, this information offers insight into how Budget manages its accounts receivable and potential bad debt. The allowance for doubtful accounts is an estimate of the amount of accounts receivable that Budget may not collect. Reviewing these figures over the three-year period can help a franchisee understand the trend and magnitude of potential uncollectible accounts. This can be a useful indicator of the financial health and stability of Budget.
It's important to note that the table also includes "Tax Valuation Allowance" data for the same years, which is a separate item. The "Other Adjustments" are primarily currency translation adjustments, which may be relevant for international franchisees or those operating in areas with fluctuating currency exchange rates. Understanding these adjustments can provide a more comprehensive view of Budget's financial performance and risk management strategies.