What was the settlement loss for Dollar Rent A Car's U.S. pension benefits in 2022 (in millions)?
Dollar_Rent_A_Car Franchise · 2025 FDDAnswer from 2025 FDD Document
selected from the yield curve has a duration that matches its plan.
The expected return on plan assets for each funded plan is based on expected future investment returns considering the target investment mix of plan assets.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
The table below sets forth the net periodic pension expense charged to net income (loss). The components of net periodic pension expense (benefit), other than service cost, were included in other (income) expense, net in the accompanying consolidated statements of operations.
| Pension Benefits | ||||||
|---|---|---|---|---|---|---|
| U.S. | Years Ended December 31, | Non-U.S. | ||||
| ($ in millions) | 2024 | 2023 | 2022 | 2024 | 2023 | 2022 |
| Components of Net Periodic Pension and | ||||||
| Postretirement Expense (Benefit) | ||||||
| Service cost | $ — | $ — | $ — | $ 1 | $ 1 | $ 1 |
| Interest cost | 18 | 19 | 16 | 8 | 8 | 5 |
| Expected return on plan assets | (15) | (14) | (14) | (7) | (7) |
Source: Item 23 — RECEIPTS (FDD pages 102–301)
What This Means (2025 FDD)
According to Dollar Rent A Car's 2025 Franchise Disclosure Document, the settlement loss for U.S. pension benefits in 2022 was $4 million. This figure is part of the components of net periodic pension and postretirement expense (benefit). It is important to note that this is a specific element within the broader context of Dollar Rent A Car's pension and postretirement financial activities.
For a prospective franchisee, understanding these pension-related expenses is crucial for assessing the overall financial health and stability of Dollar Rent A Car. While franchisees are not directly responsible for these corporate-level expenses, they reflect the company's financial obligations and management practices. Significant fluctuations in these figures from year to year could signal potential financial risks or changes in the company's approach to employee benefits.
It is also useful to compare these figures with those of other companies in the franchise industry. Benchmarking Dollar Rent A Car's pension-related expenses against industry averages can provide a more comprehensive understanding of whether these costs are in line with typical business operations or if they represent an area of potential concern. Franchisees should consider these factors as part of their due diligence process to make informed decisions about their investment.