Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 31, 2018 | Jun. 30, 2017 | |
Document Documentand Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | CAR | ||
Entity Registrant Name | AVIS BUDGET GROUP, INC. | ||
Entity Central Index Key | 723,612 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 80,952,244 | ||
Entity Public Float | $ 2,222,192,349 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues | |||||||||||
Vehicle rental | $ 6,219 | $ 6,081 | $ 6,026 | ||||||||
Other | 2,629 | 2,578 | 2,476 | ||||||||
Net revenues | 8,848 | 8,659 | 8,502 | ||||||||
Expenses | |||||||||||
Operating | 4,472 | 4,382 | 4,284 | ||||||||
Vehicle depreciation and lease charges, net | 2,221 | 2,047 | 1,933 | ||||||||
Selling, general and administrative | 1,120 | 1,134 | 1,093 | ||||||||
Vehicle interest, net | 286 | 284 | 289 | ||||||||
Non-vehicle related depreciation and amortization | 259 | 253 | 218 | ||||||||
Interest expense related to corporate debt, net: | |||||||||||
Interest expense | 188 | 203 | 194 | ||||||||
Early extinguishment of debt | 3 | 27 | 23 | ||||||||
Restructuring and other related charges | 63 | 29 | 18 | ||||||||
Impairment | 23 | 21 | 68 | ||||||||
Asset Impairment Charges | 2 | 0 | 0 | ||||||||
Total expenses | 8,637 | 8,380 | 8,120 | ||||||||
Income before income taxes | 211 | 279 | 382 | ||||||||
Provision for (benefit from) income taxes | (150) | 116 | 69 | ||||||||
Net income | $ 361 | $ 163 | $ 313 | ||||||||
Earnings per share | |||||||||||
Basic | $ 2.70 | $ 2.96 | $ 0.04 | $ (1.25) | $ (0.35) | $ 2.32 | $ 0.39 | $ (0.53) | $ 4.32 | $ 1.78 | $ 3.02 |
Diluted | $ 2.65 | $ 2.91 | $ 0.04 | $ (1.25) | $ (0.35) | $ 2.28 | $ 0.38 | $ (0.53) | $ 4.25 | $ 1.75 | $ 2.98 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 361 | $ 163 | $ 313 |
Other comprehensive income (loss), net of tax | |||
Currency translation adjustments, net of tax of $33, $(9) and $(22), respectively | 110 | 41 | (131) |
Available-for-sale securities: | |||
Net unrealized gains (losses) on available-for-sale securities, net of tax of $(1), $(1),and $1, respectively | 1 | 1 | (2) |
Cash flow hedges: | |||
Net unrealized holding gains (losses), net of tax of $0, $(1), and $4, respectively | 1 | 0 | (6) |
Reclassification of cash flow hedges to earnings, net of tax of $(2), $(2) and $(3), respectively | 2 | 4 | 5 |
Minimum pension liability adjustment: | |||
Pension and post-retirement benefits, net of tax of $(4), $21 and $(1), respectively | 11 | (57) | 6 |
Reclassification of pension and post-retirement benefits to earnings, net of tax of $(3), $(2) and $(2), respectively | 5 | 4 | 3 |
Other comprehensive income (loss) | 130 | (7) | (125) |
Total comprehensive income | $ 491 | $ 156 | $ 188 |
Consolidated Statements Of Com4
Consolidated Statements Of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Other Comprehensive Income (Loss), Foreign Currency Translation Gain (Loss) Arising During Period, Tax | $ 33 | $ (9) | $ (22) |
Net Unrealized gains (losses) on available-for-sale securities, tax | (1) | (1) | 1 |
Net unrealized holding losses arising during period,tax | 0 | (1) | 4 |
Cash flow hedges reclassified to earnings, tax | (2) | (2) | (3) |
Pension and post retirement benefits, tax | (4) | 21 | (1) |
Pension and post retirement benefits reclassified to earnings, tax | $ (3) | $ (2) | $ (2) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 611 | $ 490 |
Receivables (net of allowance for doubtful accounts of $36 and $38, respectively) | 922 | 808 |
Other current assets | 533 | 519 |
Total current assets | 2,066 | 1,817 |
Property and equipment, net | 704 | 685 |
Deferred income taxes | 931 | 1,493 |
Goodwill | 1,073 | 1,007 |
Other intangibles, net | 850 | 870 |
Other non-current assets | 196 | 193 |
Total assets exclusive of assets under vehicle programs | 5,820 | 6,065 |
Assets under vehicle programs: | ||
Program cash | 283 | 225 |
Vehicles, net | 10,626 | 10,464 |
Receivables from vehicle manufacturers and other | 547 | 527 |
Investment in Avis Budget Rental Car Funding (AESOP) LLC—related party | 423 | 362 |
Assets under vehicle programs | 11,879 | 11,578 |
Total assets | 17,699 | 17,643 |
Current liabilities: | ||
Accounts payable and other current liabilities | 1,619 | 1,488 |
Short-term debt and current portion of long-term debt | 26 | 279 |
Total current liabilities | 1,645 | 1,767 |
Long-term debt | 3,573 | 3,244 |
Other non-current liabilities | 717 | 764 |
Total liabilities exclusive of liabilities under vehicle programs | 5,935 | 5,775 |
Liabilities under vehicle programs: | ||
Debt | 2,741 | 2,183 |
Debt due to Avis Budget Rental Car Funding (AESOP) LLC—related party | 6,480 | 6,695 |
Deferred income taxes | 1,594 | 2,429 |
Other | 376 | 340 |
Total Liabilities under vehicle programs | 11,191 | 11,647 |
Commitments and Contingencies | ||
Stockholders' equity: | ||
Preferred stock, $.01 par value—authorized 10 shares; none issued and outstanding | 0 | 0 |
Common stock, $.01 par value—authorized 250 shares; issued 137 shares, respectively | 1 | 1 |
Additional paid-in capital | 6,820 | 6,918 |
Accumulated deficit | (1,222) | (1,639) |
Accumulated other comprehensive loss | (24) | (154) |
Treasury stock, at cost—56 and 51 shares, respectively | (5,002) | (4,905) |
Total stockholders’ equity | 573 | 221 |
Total liabilities and stockholders’ equity | $ 17,699 | $ 17,643 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Receivables, allowance for doubtful accounts | $ 36 | $ 38 |
Preferred stock,par value | $ 0.01 | $ 0.01 |
Preferred stock,shares authorized | 10,000,000 | 10,000,000 |
Preferred stock,shares issued | 0 | 0 |
Preferred stock,shares outstanding | 0 | 0 |
Common stock,par value | $ 0.01 | $ 0.01 |
Common stock,shares authorized | 250,000,000 | 250,000,000 |
Common stock,shares issued | 137,000,000 | 137,000,000 |
Treasury stock,shares | 56,000,000 | 51,000,000 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Cash Flows [Abstract] | |||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 901 | $ 720 | $ 717 |
Operating activities | |||
Net income | 361 | 163 | 313 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Vehicle depreciation | 1,947 | 1,877 | 1,837 |
(Gain) loss on sale of vehicles, net | 52 | (10) | (60) |
Non-vehicle related depreciation and amortization | 259 | 253 | 218 |
Deferred income taxes | (192) | 51 | 58 |
Stock-based compensation | 13 | 27 | 28 |
Amortization of debt financing fees | 34 | 37 | 42 |
Early extinguishment of debt costs | 3 | 27 | 23 |
Net change in assets and liabilities, excluding the impact of acquisitions and dispositions: | |||
Receivables | (59) | (65) | (42) |
Income taxes | (16) | 5 | (18) |
Accounts payable and other current liabilities | 49 | 2 | (36) |
Other, net | 197 | 273 | 264 |
Net cash provided by operating activities | 2,648 | 2,640 | 2,627 |
Investing activities | |||
Property and equipment additions | (197) | (190) | (199) |
Proceeds received on asset sales | 8 | 19 | 15 |
Net assets acquired (net of cash acquired) | (21) | (55) | (256) |
Other, net | 5 | 1 | 3 |
Net cash used in investing activities exclusive of vehicle programs | (205) | (225) | (437) |
Vehicle programs: | |||
Investment in vehicles | (11,538) | (12,461) | (11,928) |
Proceeds received on disposition of vehicles | 9,600 | 10,504 | 9,680 |
Repayments of Related Party Debt | (61) | 0 | 0 |
Net Cash Used In Investing Activities Of Vehicle Programs | (1,999) | (1,957) | (2,248) |
Net cash used in investing activities | (2,204) | (2,182) | (2,685) |
Financing activities | |||
Proceeds from long-term borrowings | 589 | 894 | 377 |
Payments on long-term borrowings | (602) | (847) | (301) |
Net change in short-term borrowings | (4) | 4 | (22) |
Debt financing fees | (9) | (20) | (7) |
Repurchases of common stock | (210) | (398) | (436) |
Other, net | 1 | 0 | (7) |
Net cash used in financing activities exclusive of vehicle programs | (235) | (367) | (396) |
Vehicle programs: | |||
Proceeds from borrowings | 17,212 | 15,769 | 14,138 |
Payments on borrowings | (17,269) | (15,826) | (13,648) |
Debt financing fees | (16) | (25) | (22) |
Net cash provided by financing activities of vehicle programs | (73) | (82) | 468 |
Net cash provided by (used in) financing activities | (308) | (449) | 72 |
Effect of changes in exchange rates on cash and cash equivalents, program and restricted cash | 45 | (6) | (50) |
Net increase (decrease) in cash and cash equivalents, program and restricted cash | 181 | 3 | (36) |
Cash and cash equivalents, program and restricted cash, end of period | 611 | 490 | |
Supplemental Disclosure | |||
Interest payments | 460 | 461 | 454 |
Income tax payments, net | $ 58 | $ 60 | $ 29 |
Consolidated Statements Of Stoc
Consolidated Statements Of Stockholders' Equity - USD ($) shares in Thousands, $ in Millions | Total | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Common Stock [Member] | Accumulated Deficit | AOCI Attributable to Parent [Member] |
Comprehensive income (loss): | ||||||
Shares, Issued | (31,400) | (137,100) | ||||
Stock Issued During Period, Value, Stock Options Exercised | $ 0 | $ (3) | $ (3) | |||
Excess Tax Benefit from Share-based Compensation, Financing Activities | (7) | 7 | 0 | |||
Stock Issued During Period, Value, Employee Stock Purchase Plan | 0 | (1) | (1) | |||
Balance at Dec. 31, 2014 | (665) | (7,212) | $ 4,411 | $ (1) | $ 2,115 | $ (22) |
Comprehensive income (loss): | ||||||
Net income | 313 | 313 | ||||
Other comprehensive income (loss) | (125) | (125) | ||||
Number of Options - Exercised | 0 | |||||
Treasury Stock, Shares, Acquired | 8,800 | |||||
Treasury Stock, Value, Acquired, Cost Method | (394) | $ (394) | ||||
Balance at Dec. 31, 2015 | (439) | (7,010) | 4,623 | (1) | 1,802 | 147 |
Comprehensive income (loss): | ||||||
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 188 | |||||
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures | (13) | (191) | $ 178 | |||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | 900 | |||||
Balance at Dec. 31, 2014 | $ (665) | (7,212) | $ 4,411 | (1) | 2,115 | (22) |
Comprehensive income (loss): | ||||||
Treasury Stock, Shares, Acquired | 27,000 | |||||
Treasury Stock, Value, Acquired, Cost Method | $ (1,000) | |||||
Balance at Dec. 31, 2017 | (573) | (6,820) | $ 5,002 | $ (1) | 1,222 | 24 |
Comprehensive income (loss): | ||||||
Shares, Issued | (39,300) | (137,100) | ||||
Stock Issued During Period, Value, Stock Options Exercised | 0 | (2) | $ (2) | |||
Excess Tax Benefit from Share-based Compensation, Financing Activities | 5 | 5 | 0 | |||
Stock Issued During Period, Value, Employee Stock Purchase Plan | (1) | 1 | (2) | |||
Balance at Dec. 31, 2015 | (439) | (7,010) | $ 4,623 | $ (1) | 1,802 | 147 |
Comprehensive income (loss): | ||||||
Net income | 163 | 163 | ||||
Other comprehensive income (loss) | (7) | (7) | ||||
Number of Options - Exercised | 0 | |||||
Treasury Stock, Shares, Acquired | 12,300 | |||||
Treasury Stock, Value, Acquired, Cost Method | (390) | $ (390) | ||||
Balance at Dec. 31, 2016 | (221) | (6,918) | 4,905 | $ (1) | 1,639 | 154 |
Comprehensive income (loss): | ||||||
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 156 | |||||
Stockholders' Equity Attributable to Noncontrolling Interest | 5 | 5 | ||||
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures | 15 | (89) | $ 104 | |||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | 500 | |||||
Shares, Issued | (51,100) | (137,100) | ||||
Stock Issued During Period, Value, Stock Options Exercised | 0 | (48) | $ (48) | |||
Stock Issued During Period, Value, Employee Stock Purchase Plan | 0 | 1 | $ (1) | |||
Net income | 361 | |||||
Other comprehensive income (loss) | $ 130 | |||||
Number of Options - Exercised | 537 | 500 | ||||
Treasury Stock, Shares, Acquired | 6,100 | |||||
Treasury Stock, Value, Acquired, Cost Method | $ (200) | $ (200) | ||||
Balance at Dec. 31, 2017 | (573) | (6,820) | 5,002 | $ (1) | 1,222 | $ 24 |
Comprehensive income (loss): | ||||||
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 491 | |||||
Stockholders' Equity Attributable to Noncontrolling Interest | 1 | 1 | ||||
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures | 4 | $ (50) | $ 54 | |||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | 400 | |||||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 56 | $ 56 | ||||
Shares, Issued | (56,300) | (137,100) |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | 1. Basis of Presentation Avis Budget Group, Inc. provides vehicle rental and other mobility solutions to businesses and consumers worldwide. The accompanying Consolidated Financial Statements include the accounts and transactions of Avis Budget Group, Inc. and its subsidiaries, as well as entities in which Avis Budget Group, Inc. directly or indirectly has a controlling financial interest (collectively, the “Company”). The Company operates the following reportable business segments: • Americas —consisting primarily of (i) vehicle rental operations in North America, South America, Central America and the Caribbean, (ii) car sharing operations in certain of these markets, and (iii) licensees in the areas in which the Company does not operate directly. • International —consisting primarily of (i) vehicle rental operations in Europe, the Middle East, Africa, Asia and Australasia, (ii) car sharing operations in certain of these markets, and (iii) licensees in the areas in which the Company does not operate directly. The Company has completed the business acquisitions discussed in Note 5 to these Consolidated Financial Statements. The operating results of the acquired businesses are included in the accompanying Consolidated Financial Statements from the dates of acquisition. The Company presents separately the financial data of its vehicle programs. These programs are distinct from the Company’s other activities since the assets under vehicle programs are generally funded through the issuance of debt that is collateralized by such assets. The income generated by these assets is used, in part, to repay the principal and interest associated with the debt. Cash inflows and outflows relating to the acquisition of such assets and the principal debt repayment or financing of such assets are classified as activities of the Company’s vehicle programs. The Company believes it is appropriate to segregate the financial data of its vehicle programs because, ultimately, the source of repayment of such debt is the realization of such assets. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Accounting Principles The Company’s Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Principles of Consolidation The Consolidated Financial Statements include the accounts of the Company and all entities in which it has a direct or indirect controlling financial interest and variable interest entities for which the Company has determined it is the primary beneficiary. Intercompany transactions have been eliminated in consolidation. Reclassifications Certain reclassifications have been made to prior years’ Consolidated Financial Statements to conform to the current year presentation. These reclassifications have no impact on reported net income (see “Adoption of New Accounting Pronouncements” below). Use of Estimates and Assumptions The use of estimates and assumptions as determined by management is required in the preparation of the Consolidated Financial Statements in conformity with GAAP. These estimates are based on management’s evaluation of historical trends and other information available when the Consolidated Financial Statements are prepared and may affect the amounts reported and related disclosures. Actual results could differ from those estimates. Revenue Recognition The Company derives revenue primarily through the operation and licensing of its rental systems and by providing vehicle rentals and other services to business and leisure travelers and others. Other revenue includes sales of loss damage waivers and insurance products, fuel and fuel service charges, and rentals of other supplemental items. Revenue is recognized when persuasive evidence of an arrangement exists, the services have been rendered to customers, the pricing is fixed or determinable and collection is reasonably assured. Vehicle rental and rental-related revenue is recognized over the period the vehicle is rented. Licensing revenue principally consists of royalties paid by the Company’s licensees and is recorded within other revenues as the licensees’ revenue is earned (over the rental period of a vehicle). The Company renews license agreements in the normal course of business and occasionally terminates, purchases or sells license agreements. In connection with ongoing fees that the Company receives from its licensees pursuant to license agreements, the Company is required to provide certain services, such as training, marketing and the operation of reservation systems. Revenue and expenses associated with gasoline, vehicle licensing and airport concessions are recorded on a gross basis within revenue and operating expenses. Membership fees related to the Company’s car sharing business are generally nonrefundable, are deferred and recognized ratably over the period of membership and are included in accounts payable and other current liabilities in the Consolidated Balance Sheets. Currency Translation Assets and liabilities of foreign operations are translated at the rate of exchange in effect on the balance sheet date; income and expenses are translated at the prevailing monthly average rate of exchange. The related translation adjustments are reflected in accumulated other comprehensive income (loss) in the stockholders’ equity section of the Consolidated Balance Sheets and in the Consolidated Statements of Comprehensive Income. The accumulated currency translation adjustment as of December 31, 2017 and 2016 was $71 million and $(39) million , respectively. The Company has designated its euro-denominated Notes as a hedge of its investment in euro-denominated foreign operations and, accordingly, records the effective portion of gains or losses on this net investment hedge in accumulated other comprehensive income (loss) as part of currency translation adjustments. Cash and Cash Equivalents The Company considers highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Property and Equipment Property and equipment (including leasehold improvements) are stated at cost, net of accumulated depreciation and amortization. Depreciation (non-vehicle related) is computed utilizing the straight-line method over the estimated useful lives of the related assets. Amortization of leasehold improvements is computed utilizing the straight-line method over the estimated benefit period of the related assets, which may not exceed 20 years, or the lease term, if shorter. Useful lives are as follows: Buildings 30 years Furniture, fixtures & equipment 3 to 10 years Capitalized software 3 to 7 years Buses and support vehicles 4 to 15 years The Company capitalizes the costs of software developed for internal use when the preliminary project stage is completed and management (i) commits to funding the project and (ii) believes it is probable that the project will be completed and the software will be used to perform the function intended. The software developed or obtained for internal use is amortized on a straight-line basis commencing when such software is ready for its intended use. The net carrying value of software developed or obtained for internal use was $196 million and $184 million as of December 31, 2017 and 2016 , respectively. Goodwill and Other Intangible Assets Goodwill represents the excess, if any, of the fair value of the consideration transferred by the acquirer and the fair value of any non-controlling interest remaining in the acquiree, if any, over the fair values of the identifiable net assets acquired. The Company does not amortize goodwill, but assesses it for impairment at least annually and whenever events or changes in circumstances indicate that the carrying amounts of their respective reporting units exceed their fair values. The Company performs its annual impairment assessment in the fourth quarter of each year at the reporting unit level. The Company assesses goodwill for such impairment by comparing the carrying value of each reporting unit to its fair value using the present value of expected future cash flows. When appropriate, comparative market multiples and other factors are used to corroborate the discounted cash flow results. Other intangible assets, primarily trademarks, with indefinite lives are not amortized but are evaluated annually for impairment and whenever events or changes in circumstances indicate that the carrying amount of this asset may exceed its fair value. If the carrying value of an other intangible asset exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. Other intangible assets with finite lives are amortized over their estimated useful lives and are evaluated each reporting period to determine if circumstances warrant a revision to these lives. Impairment of Long-Lived Assets The Company is required to assess long-lived assets for impairment whenever circumstances indicate impairment may have occurred. This analysis is performed by comparing the respective carrying values of the assets to the undiscounted expected future cash flows to be generated from such assets. Property and equipment is evaluated separately at the lowest level of identifiable cash flows. If such analysis indicates that the carrying value of these assets is not recoverable, the carrying value of such assets is reduced to fair value. Program Cash Program cash primarily represents amounts specifically designated to purchase assets under vehicle programs and/or to repay the related debt. Vehicles Vehicles are stated at cost, net of accumulated depreciation. The initial cost of the vehicles is recorded net of incentives and allowances from manufacturers. The Company acquires a portion of its rental vehicles pursuant to repurchase and guaranteed depreciation programs established by automobile manufacturers. Under these programs, the manufacturers agree to repurchase vehicles at a specified price and date, or guarantee the depreciation rate for a specified period of time, subject to certain eligibility criteria (such as car condition and mileage requirements). The Company depreciates vehicles such that the net book value on the date of return to the manufacturers is intended to equal the contractual guaranteed residual values, thereby minimizing any gain or loss. Rental vehicles acquired outside of manufacturer repurchase and guaranteed depreciation programs are depreciated based upon their estimated residual values at their expected dates of disposition, after giving effect to anticipated conditions in the used car market. Any adjustments to depreciation are made prospectively. The estimation of residual values requires the Company to make assumptions regarding the age and mileage of the car at the time of disposal, as well as expected used vehicle auction market conditions. The Company periodically evaluates estimated residual values and adjusts depreciation rates as appropriate. Differences between actual residual values and those estimated result in a gain or loss on disposal and are recorded as part of vehicle depreciation at the time of sale. Vehicle-related interest expense amounts are net of vehicle-related interest income of $8 million , $18 million and $13 million for 2017 , 2016 and 2015 , respectively. Advertising Expenses Advertising costs are generally expensed in the period incurred. Advertising expenses, recorded within selling, general and administrative expense on our Consolidated Statements of Operations, include television, print advertising, travel partner rewards programs, Internet and email advertising, social media, wireless mobile device applications and other advertising and promotions and were approximately $111 million , $127 million and $123 million in 2017 , 2016 and 2015 , respectively. Taxes The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. In the fourth quarter of 2017, the U.S. enacted Public Law 115-97, commonly referred to as the U.S. Tax Reform Act (the “Tax Act”), which included a change in the U.S. federal corporate income tax rate. For more information regarding the accounting for the effects of the Tax Act, see Note 8-Income Taxes. The Company records net deferred tax assets to the extent it believes that it is more likely than not that these assets will be realized. In making such determination, the Company considers all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies and recent results of operations. In the event the Company were to determine that it would be able to realize the deferred income tax assets in the future in excess of their net recorded amount, the Company would adjust the valuation allowance, which would reduce the provision for income taxes. The Company reports revenues net of any tax assessed by a governmental authority that is both imposed on and concurrent with a specific revenue-producing transaction between a seller and a customer. Fair Value Measurements The Company measures fair value of assets and liabilities and discloses the source for such fair value measurements. Financial assets and liabilities are classified as follows: Level 1, which refers to assets and liabilities valued using quoted prices from active markets for identical assets or liabilities; Level 2, which refers to assets and liabilities for which significant other observable market inputs are readily available; and Level 3, which are valued based on significant unobservable inputs. The fair value of the Company’s financial instruments is generally determined by reference to market values resulting from trading on a national securities exchange or in an over-the-counter market (Level 1 inputs). In some cases where quoted market prices are not available, prices are derived by considering the yield of the benchmark security that was issued to initially price the instruments and adjusting this rate by the credit spread that market participants would demand for the instruments as of the measurement date (Level 2 inputs). In situations where long-term borrowings are part of a conduit facility backed by short-term floating rate debt, the Company has determined that its carrying value approximates the fair value of this debt (Level 2 inputs). The carrying amounts of cash and cash equivalents, available-for-sale securities, accounts receivable, program cash and accounts payable and accrued liabilities approximate fair value due to the short-term maturities of these assets and liabilities. The Company’s derivative assets and liabilities consist principally of currency exchange contracts, interest rate swaps, interest rate caps and commodity contracts, and are carried at fair value based on significant observable inputs (Level 2 inputs). Derivatives entered into by the Company are typically executed over-the-counter and are valued using internal valuation techniques, as no quoted market prices exist for such instruments. The valuation technique and inputs depend on the type of derivative and the nature of the underlying exposure. The Company principally uses discounted cash flows to value these instruments. These models take into account a variety of factors including, where applicable, maturity, currency exchange rates, interest rate yield curves of the Company and counterparties, credit curves, counterparty creditworthiness and commodity prices. These factors are applied on a consistent basis and are based upon observable inputs where available. Derivative Instruments Derivative instruments are used as part of the Company’s overall strategy to manage exposure to market risks associated with fluctuations in currency exchange rates, interest rates and gasoline costs. As a matter of policy, derivatives are not used for trading or speculative purposes. All derivatives are recorded at fair value either as assets or liabilities. Changes in fair value of derivatives not designated as hedging instruments are recognized currently in earnings within the same line item as the hedged item. The effective portion of changes in fair value of a derivative that is designated as either a cash flow or net investment hedge is recorded as a component of accumulated other comprehensive income (loss). The ineffective portion is recognized in earnings within the same line item as the hedged item, including vehicle interest, net or interest related to corporate debt, net. Amounts included in accumulated other comprehensive income (loss) are reclassified into earnings in the same period during which the hedged item affects earnings. Amounts related to our derivative instruments are recognized in the Consolidated Statements of Cash Flows consistent with the nature of the hedged item (principally operating activities). Currency Transactions Currency gains and losses resulting from foreign currency transactions are generally included in operating expenses within the Consolidated Statement of Operations; however, the net gain or loss of currency transactions on intercompany loans and the unrealized gain or loss on intercompany loan hedges are included within interest expense related to corporate debt, net. During December 31, 2017, the Company recorded a gain of $3 million and during the years ended December 31, 2016 and 2015 , the Company recorded losses of $6 million and $11 million , respectively, on such items. Self-Insurance Reserves The Consolidated Balance Sheets include $422 million and $437 million of liabilities associated with retained risks of liability to third parties as of December 31, 2017 and 2016 , respectively. Such liabilities relate primarily to public liability and third-party property damage claims, as well as claims arising from the sale of ancillary insurance products including but not limited to supplemental liability, personal effects protection and personal accident insurance. These obligations represent an estimate for both reported claims not yet paid and claims incurred but not yet reported. The estimated reserve requirements for such claims are recorded on an undiscounted basis utilizing actuarial methodologies and various assumptions which include, but are not limited to, the Company’s historical loss experience and projected loss development factors. The required liability is also subject to adjustment in the future based upon changes in claims experience, including changes in the number of incidents for which the Company is ultimately liable and changes in the cost per incident. These amounts are included within accounts payable and other current liabilities and other non-current liabilities. The Consolidated Balance Sheets also include liabilities of approximately $66 million and $71 million as of December 31, 2017 and 2016 , respectively, related to workers’ compensation, health and welfare and other employee benefit programs. The liabilities represent an estimate for both reported claims not yet paid and claims incurred but not yet reported, utilizing actuarial methodologies similar to those described above. These amounts are included within accounts payable and other current liabilities and other non-current liabilities. Stock-Based Compensation Stock-based compensation cost is measured at the grant date, based on the fair value of the award, and is recognized as expense on a straight-line basis over the vesting period. The Company’s policy is to record compensation expense for stock options, and restricted stock units that are time- and performance-based, for the portion of the award that is expected to vest. Compensation expense related to market-based restricted stock units is recognized provided that the requisite service is rendered, regardless of when, if ever, the market condition is satisfied. We estimate the fair value of restricted stock units using the market price of the Company’s common stock on the date of grant. We estimate the fair value of stock-based and cash unit awards containing a market condition using a Monte Carlo simulation model. Key inputs and assumptions used in the Monte Carlo simulation model include the stock price of the award on the grant date, the expected term, the risk-free interest rate over the expected term, the expected annual dividend yield and the expected stock price volatility. The expected volatility is based on a combination of the historical and implied volatility of the Company’s publicly traded, near-the-money stock options, and the valuation period is based on the vesting period of the awards. The risk-free interest rate is derived from the U.S. Treasury yield curve in effect at the time of grant and, since the Company does not currently pay or plan to pay a dividend on its common stock, the expected dividend yield was zero. Business Combinations The Company uses the acquisition method of accounting for business combinations, which requires that the assets acquired and liabilities assumed be recorded at their respective fair values at the date of acquisition. Assets acquired and liabilities assumed in a business combination that arise from contingencies are recognized if fair value can be reasonably estimated at the acquisition date. The excess, if any, of (i) the fair value of the consideration transferred by the acquirer and the fair value of any non-controlling interest remaining in the acquiree, over (ii) the fair values of the identifiable net assets acquired is recorded as goodwill. Gains and losses on the re-acquisition of license agreements are recorded in the Consolidated Statements of Operations within transaction-related costs, net, upon completion of the respective acquisition. Costs incurred to effect a business combination are expensed as incurred, except for the cost to issue debt related to the acquisition. The Company records contingent consideration resulting from a business combination at its fair value on the acquisition date. The fair value of the contingent consideration is generally estimated by utilizing a Monte Carlo simulation technique, based on a range of possible future results (Level 3). Any changes in contingent consideration are recorded in transaction-related costs, net. During 2015, the Company paid $18 million of contingent consideration associated with the acquisition of Apex, which consisted of $9 million related to the liability recognized at fair value as of the acquisition date and $13 million related to fair value adjustments previously recognized in earnings, partially offset by $4 million of favorable currency exchange rate movements. Transaction-related Costs, net Transaction-related costs, net are classified separately in the Consolidated Statements of Operations. These costs are comprised of expenses related to acquisition-related activities such as due-diligence and other advisory costs, expenses related to the integration of the acquiree’s operations with those of the Company, including the implementation of best practices and process improvements, non-cash gains and losses related to re-acquired rights, expenses related to pre-acquisition contingencies and contingent consideration related to acquisitions. Investments Joint venture investments are typically accounted for under the equity method of accounting. Under this method, the Company records its proportional share of the joint venture’s net income or loss within operating expenses in the Consolidated Statements of Operations. The Company assesses equity method investments for impairment whenever events or changes in circumstances indicate that the carrying amounts of such investments may not be recoverable. Any difference between the carrying value of the equity method investment and its estimated fair value is recognized as an impairment charge if the loss in value is deemed other than temporary. As of December 31, 2017 and 2016 , the Company had investments in several joint ventures with a carrying value of $32 million and $36 million , respectively, recorded within other non-current assets on the Consolidated Balance Sheets. Aggregate realized gains and losses on equity investments and dividend income are recorded within operating expenses on the Consolidated Statements of Operations. During 2017 , 2016 and 2015, the amounts realized from the sale of equity investments and dividend income were not material. Adoption of New Accounting Pronouncements Scope of Modification Accounting for Share-Based Payment Awards In May 2017, the Financial Accounting Standards Board (“FASB”) issued ASU 2017-09, “Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting,” which provides guidance on the types of changes to the terms or conditions of a share-based payment award to which an entity would be required to apply modification accounting. ASU 2017-09 becomes effective for the Company on January 1, 2018; however, as of December 31, 2017 the Company has elected to adopt the provisions of ASU 2017-09 early on a prospective basis. Accordingly, the adoption of this accounting pronouncement did not have an impact on the Company’s Consolidated Financial Statements. Accounting for Goodwill Impairment In January 2017, the FASB issued ASU 2017-04, “Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment,” which requires an entity to perform its goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and to recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. ASU 2017-04 becomes effective for the Company on January 1, 2020; however, as of October 1, 2017 the Company has elected to adopt the provisions of ASU 2017-04 early on a prospective basis. Accordingly, the adoption of this accounting pronouncement did not have an impact on the Company’s Consolidated Financial Statements. Clarifying the Definition of a Business In January 2017, the FASB issued ASU 2017-01, “Business Combinations (Topic 805): Clarifying the Definition of a Business,” which assists entities in evaluating whether transactions should be accounted for as acquisitions of assets or businesses. ASU 2017-01 becomes effective for the Company on January 1, 2018; however, as of December 31, 2017 the Company has elected to adopt the provisions of ASU 2017-01 early on a prospective basis. Accordingly, the adoption of this accounting pronouncement did not have an impact on the Company’s Consolidated Financial Statements. Restricted Cash In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash,” which clarifies guidance on the classification and presentation of restricted cash in the statement of cash flows. ASU 2016-18 becomes effective for the Company on January 1, 2018; however, as of December 31, 2017, the Company has elected to adopt the provisions of ASU 2016-18 early on a retrospective basis. The following tables provide the impact of adoption on the Company’s Consolidated Statements of Cash Flows for the years ended December 31, 2016 and 2015. Year Ended December 31, 2016 As Previously Reported Effect of Change As Adjusted Decrease in program cash $ 31 $ (31 ) $ — Other, net 3 (2 ) 1 Net cash used in investing activities (2,149 ) (33 ) (2,182 ) Effect of changes in exchange rates on cash and cash equivalents, program and restricted cash (4 ) (2 ) (6 ) Net increase in cash and cash equivalents, program and restricted cash 38 (35 ) 3 Cash and cash equivalents, program and restricted cash, beginning of period 452 265 717 Cash and cash equivalents, program and restricted cash, end of period $ 490 $ 230 $ 720 Year Ended December 31, 2015 As Previously Reported Effect of Change As Adjusted Increase in program cash $ (148 ) $ 148 $ — Other, net 6 (3 ) 3 Net cash used in investing activities (2,830 ) 145 (2,685 ) Effect of changes in exchange rates on cash and cash equivalents, program and restricted cash (41 ) (9 ) (50 ) Net decrease in cash and cash equivalents, program and restricted cash (172 ) 136 (36 ) Cash and cash equivalents, program and restricted cash, beginning of period 624 129 753 Cash and cash equivalents, program and restricted cash, end of period $ 452 $ 265 $ 717 Program cash primarily represents amounts specifically designated to purchase assets under vehicle programs and/or to repay the related debt, as such the Company considers it a restricted cash equivalent under this standard. The following table provides a reconciliation of cash and cash equivalents, program and restricted cash reported within the Consolidated Balance Sheets to the amounts shown in the Consolidated Statements of Cash Flows: As of December 31, 2017 2016 Cash and cash equivalents $ 611 $ 490 Program cash 283 225 Restricted cash (a) 7 5 Total cash and cash equivalents, program and restricted cash $ 901 $ 720 _________ (a) Included within other current assets. Classification of Certain Cash Receipts and Cash Payments In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments,” which clarifies guidance on the classification of certain cash receipts and cash payments in the statement of cash flows. These items include, debt prepayment or debt extinguishment costs, settlement of zero-coupon debt instruments, contingent consideration payments made after a business combination, proceeds from the settlement of life insurance claims, proceeds from the settlement of corporate-owned life insurance policies, and distributions received from equity method investees. ASU 2016-15 becomes effective for the Company on January 1, 2018; however, as of December 31, 2017 the Company has elected to adopt the provisions of ASU 2016-15 early on a retrospective basis. The Company elected to account for distributions received from equity method investees using the nature of the distribution approach. The adoption of this accounting pronouncement did not have an impact on the Company’s Consolidated Financial Statements. Improvements to Employee Share-Based Payment Accounting On January 1, 2017, as a result of a new accounting pronouncement, the Company adopted Accounting Standards Update (”ASU”) 2016-09, “Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting,” which simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, minimum statutory withholding requirements and classification in the statement of cash flows. Accordingly, in the Company’s Consolidated Balance Sheet at January 1, 2017, deferred income tax assets, net of the valuation allowance were increased by $56 million related to previously unrecognized excess tax benefits associated with equity awards, with a corresponding decrease to accumulated deficit, using the modified retrospective method. In 2017, as a result of the adoption of ASU 2016-09, share-based compensation excess tax benefits or deductions are included in the Consolidated Statement of Operations as a component of provision for (benefit from) income taxes, previously these amounts were recognized in equity. In addition, in the Company’s Consolidated Statement of Cash Flows for the years ended December 31, 2016 and 2015, cash taxes paid related to shares directly withheld from employees for tax purposes of $11 million and $43 million , respectively, were reclassified from accounts payable and other current liabilities within net cash provided by operating activities to repurchases of common stock within net cash used in financing activities exclusive of vehicle programs. The Company elected to account for forfeitures on an actual basis, which did not have a material impact on its Consolidated Financial Statements. Recently Issued Accounting Pronouncements Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost On January 1, 2018, as a result of a new accounting pronouncement, the Company adopted ASU 2017-07, “Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Costs and Net Periodic Postretirement Benefit Cost,” which requires an entity to disaggregate the components of net benefit cost recognized in the consolidated statements of operations. The adoption of this accounting pronouncement did not have an impact on the Company’s Consolidated Financial Statements. Recognition and Measurement of Financial Assets and Financial Liabilities On January 1, 2018, as a result of a new accounting pronouncement, the Company adopted ASU 2016-01, “Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities,” which makes limited amendments to the classification and measurement of financial instruments. The new standard amends certain disclosure requirements associated with the fair value of financial instruments. The adoption of this accounting pronouncement did not have a material impact on the Company’s Consolidated Financial Statements. Intra-Entity Transfers of Assets Other Than Inventory On January 1, 2018, as a result of a new accounting pronouncement, the Company adopted ASU 2016-16, “Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory,” which removes the prohibition in Topic 740 against the immediate recognition of the current and deferred income tax effects of intra-entity transfers of assets other than inventory. The adoption of this accounting pronouncement did not have an impact on the Company’s Consolidated Financial Statements. Revenue from Contracts with Customers On January 1, 2018, as a result of a new accounting pronouncement, the Company adopted ASU 2014-09, “Revenue from Contracts with Customers (Topic 606),” which outlines a single model for entities to use in accounting for revenue arising from contracts with customers and supersedes current revenue recognition guidance. The new guidance applies to all contracts with customers except for leases, insurance contracts, financial instruments, certain n |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 3. Earnings Per Share The following table sets forth the computation of basic and diluted earnings per share (“EPS”) (shares in millions): Year Ended December 31, 2017 2016 2015 Net income for basic and diluted EPS $ 361 $ 163 $ 313 Basic weighted average shares outstanding 83.4 92.0 103.4 Options and non-vested stock 1.4 1.3 1.6 Diluted weighted average shares outstanding 84.8 93.3 105.0 Earnings per share: Basic $ 4.32 $ 1.78 $ 3.02 Diluted $ 4.25 $ 1.75 $ 2.98 The following table summarizes the Company’s outstanding common stock equivalents that were anti-dilutive and therefore excluded from the computation of diluted EPS (shares in millions): As of December 31, 2017 2016 2015 Non-vested stock (a) 0.5 0.2 0.1 __________ (a) The weighted average grant date fair value for anti-dilutive non-vested stock for 2017, 2016 and 2015 was $38.40 , $52.07 and $61.15 , respectively. |
Restructuring
Restructuring | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | 4. Restructuring and Other Related Charges Restructuring During fourth quarter 2017, the Company initiated a strategic restructuring initiative to better position its truck rental operations in the U.S., in which it closed certain rental locations and reduced the size of the older rental fleet, with the intent to increase fleet utilization and reduce vehicle and overhead costs (“Truck initiative”). During the year ended December 31, 2017, as part of this initiative, the Company formally communicated the termination of employment to approximately 25 employees, and as of December 31, 2017, the Company had terminated the employment of approximately 20 of these employees. The Company expects further restructuring expense of approximately $3 million related to this initiative to be incurred in 2018. During first quarter 2017, the Company initiated a strategic restructuring initiative to drive operational efficiency throughout the organization by reducing headcount, improving processes and consolidating functions, closing certain rental locations and decreasing the size of its fleet (“T17”). During the year ended December 31, 2017, as part of this initiative, the Company formally communicated the termination of employment to approximately 680 employees, and as of December 31, 2017, the Company had terminated the employment of approximately 665 of these employees. The costs associated with this initiative primarily represent severance, outplacement services and other costs associated with employee terminations, the majority of which have been or are expected to be settled in cash. This initiative is substantially complete. In 2014, the Company committed to various strategic initiatives to identify best practices and drive efficiency throughout its organization, by reducing headcount, improving processes and consolidating functions (“T15”). In first quarter 2016, the Company expanded the T15 restructuring to take advantage of additional efficiency opportunities. The expanded T15 restructuring fits within the initiative’s focus areas to identify best practices and drive efficiency throughout the organization, including the consolidation of rental locations. During the years ended December 31, 2016 and 2015, as part of this process, the Company formally communicated the termination of employment to approximately 615 and 325 employees, respectively. At December 31 2017, the Company had terminated approximately 990 employees as part of this initiative. The costs associated with this initiative primarily represent severance, outplacement services and other costs associated with employee terminations, the majority of which have been or are expected to be settled in cash. This initiative is complete. In conjunction with previous acquisitions, the Company identified opportunities to integrate and streamline its operations, primarily in Europe (“Acquisition integration”). During the years ended December 31, 2016 and 2015, as part of this process, the Company formally communicated the termination of employment to approximately 115 and 180 employees, respectively. At December 31, 2017 , the Company had terminated approximately 260 of these employees. This initiative is complete. In 2011, subsequent to the acquisition of Avis Europe plc, the Company initiated restructuring initiatives, identifying synergies across the Company, enhancing organizational efficiencies and consolidating and rationalizing processes (“Avis Europe”). During the year ended December 31, 2014, as part of this process, the Company formally communicated the termination of employment to approximately 230 employees. The costs associated with severance, outplacement services and other costs associated with employee terminations were settled in cash. This initiative is complete. The following tables summarize the change to our restructuring-related liabilities and identify the amounts recorded within the Company’s reporting segments for restructuring charges and corresponding payments and utilizations: Personnel Related Facility Related Other (a) Total Balance as of January 1, 2015 $ 14 $ 3 $ — $ 17 Restructuring expense: T15 9 — — 9 Acquisition integration 9 — — 9 Restructuring payment: T15 (12 ) — — (12 ) Acquisition integration (3 ) — — (3 ) Avis Europe (7 ) (2 ) — (9 ) Balance as of December 31, 2015 10 1 — 11 Restructuring expense: T15 15 1 5 21 Acquisition integration 9 — — 9 Avis Europe (1 ) — — (1 ) Restructuring payment/utilization: T15 (12 ) (1 ) (5 ) (18 ) Acquisition integration (15 ) — — (15 ) Avis Europe (1 ) — — (1 ) Balance as of December 31, 2016 5 1 — 6 Restructuring expense: Truck initiative 1 — 4 5 T17 20 — 15 35 Restructuring payment/utilization: Truck initiative (1 ) — (4 ) (5 ) T17 (17 ) (1 ) (15 ) (33 ) T15 (3 ) — — (3 ) Acquisition integration (1 ) — — (1 ) Balance as of December 31, 2017 $ 4 $ — $ — $ 4 __________ (a) Includes expenses primarily related to the disposition of vehicles. Americas International Total Balance as of January 1, 2015 $ 4 $ 13 $ 17 Restructuring expense: T15 6 3 9 Acquisition integration 1 8 9 Restructuring payment: T15 (8 ) (4 ) (12 ) Acquisition integration (1 ) (2 ) (3 ) Avis Europe (1 ) (8 ) (9 ) Balance as of December 31, 2015 1 10 11 Restructuring expense: T15 11 10 21 Acquisition integration — 9 9 Avis Europe — (1 ) (1 ) Restructuring payment/utilization: T15 (11 ) (7 ) (18 ) Acquisition integration — (15 ) (15 ) Avis Europe — (1 ) (1 ) Balance as of December 31, 2016 1 5 6 Restructuring expense: Truck initiative 5 — 5 T17 25 10 35 Restructuring payment/utilization: Truck initiative (5 ) — (5 ) T17 (24 ) (9 ) (33 ) T15 (1 ) (2 ) (3 ) Acquisition integration — (1 ) (1 ) Balance as of December 31, 2017 $ 1 $ 3 $ 4 Other Related Charges Officer Separation Costs On May 12, 2017, the Company announced the resignation of David B. Wyshner as the Company’s President and Chief Financial Officer. In connection with Mr. Wyshner’s departure, the Company recorded other related charges of $7 million during the year ended December 31, 2017, inclusive of accelerated stock-based compensation expense of $2 million . Limited Voluntary Opportunity Plans (“LVOP”) During 2017, the Company offered voluntary termination programs to certain employees in the Americas’ field operations, shared services, and general and administrative functions for a limited time. These employees, if qualified, elected resignation from employment in return for enhanced severance benefits to be settled in cash. During the year ended December 31, 2017, the Company recorded other related charges of $16 million in connection with LVOP. Approximately 355 qualified employees elected to participate in the plans, and as of December 31, 2017, the Company had terminated the employment of approximately 340 of these participants. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Acquisitions | 5. Acquisitions 2017 Avis and Budget Licensees During 2017, the Company completed the acquisitions of various licensees in Europe and North America, for approximately $9 million , plus $4 million for acquired fleet. These investments were in line with the Company’s strategy to re-acquire licensees when advantageous to expand our footprint of Company-operated locations. The acquired fleet was financed under the Company’s existing financing arrangements. In connection with these acquisitions, approximately $12 million was recorded in license agreements. The license agreements will be amortized over a weighted average useful life of approximately three years . In addition, at the time of the acquisitions, the Company recorded $2 million in non-cash charges within transaction-related costs, net in connection with the license rights reacquired by the Company. The fair value of the assets acquired and liabilities assumed has not yet been finalized and is therefore subject to change. ACL Hire Limited In November 2017 , the Company completed the acquisition of ACL Hire Limited, a vehicle rental company in Scotland and the UK specializing in commercial and mid-size transit vans, for approximately $5 million , net of acquired cash, and agreed to an additional $2 million of contingent consideration which is contingent on ACL Hire Limited’s future financial performance. The excess of the purchase price over preliminary fair value of net assets acquired was allocated to goodwill, which was assigned to the Company’s International reportable segment. In connection with this acquisition, approximately $5 million was recorded in goodwill. The goodwill is not deductible for tax purposes. The fair value of the assets acquired and liabilities assumed has not yet been finalized and is therefore subject to change. 2016 FranceCars In December 2016 , the Company completed the acquisition of FranceCars for approximately $45 million , net of acquired cash. The investment enabled the Company to expand its footprint with a leading provider of vehicle rental services in France. The excess of the purchase price over preliminary fair value of net assets acquired was allocated to goodwill, which was assigned to the Company’s International reportable segment. In connection with this acquisition, approximately $22 million was recorded in goodwill, $6 million was recorded in customer relationships, and $9 million related to trademarks was recorded in other intangibles. The customer relationships and trademarks are being amortized over a weighted average useful life of approximately eight years . The goodwill is not deductible for tax purposes. Differences between the preliminary allocation of purchase price and the final allocation were not material for FranceCars. 2015 Maggiore Group In April 2015 , the Company completed the acquisition of Maggiore Group (“Maggiore”) for approximately $160 million , net of acquired cash and short-term investments. The investment enabled the Company to expand its footprint with a leading provider of vehicle rental services in Italy. The excess of the purchase price over preliminary fair value of net assets acquired was allocated to goodwill, which was assigned to the Company’s International reportable segment. In connection with this acquisition, approximately $82 million was recorded in goodwill, $50 million was recorded in customer relationships, $34 million related to trademarks were recorded in other intangibles and $11 million was recorded in license agreements. The customer relationships, trademarks and license agreements are being amortized over a weighted average useful life of approximately ten years . The goodwill is not deductible for tax purposes. Differences between the preliminary allocation of purchase price and the final allocation were not material for Maggiore. Brazil In August 2013 , the Company made an initial equity investment in its Brazilian licensee (“Brazil”) for a 50% ownership stake. In April 2015 , the Company acquired the remaining 50% equity interest in Brazil, which is now a wholly-owned subsidiary, for cash consideration of $8 million plus $46 million principally to acquire debt interests and settle certain debt and accrued interest obligations. Since the Company previously accounted for its 50% interest in Brazil as an equity-method investment, in order to recognize Brazil as a wholly-owned subsidiary in April 2015, the Company remeasured its previously held equity method investment to fair value using the Income approach-discounted cash flow method (Level 3), resulting in a loss of $8 million during 2015 as part of transaction-related costs. $77 million was allocated to goodwill for the excess of the purchase price over preliminary fair value of net assets acquired, which was assigned to the Company’s Americas reportable segment and is not deductible for tax purposes. Differences between the preliminary allocation of purchase price and the final allocation were not material for Brazil. Avis and Budget Licensees In November and January 2015, the Company completed the acquisitions of its Avis licensee in Poland and its Avis and Budget licensees in Norway, Sweden and Denmark, respectively, for approximately $62 million , net of acquired cash. Additionally, the Company settled debt obligations of approximately $23 million in Poland. These investments enabled the Company to expand its footprint of Company-operated locations in Europe. The excess of the purchase price over preliminary fair value of net assets acquired was allocated to goodwill, which was assigned to the Company’s International reportable segment. In connection with these acquisitions, approximately $36 million was recorded in license agreements, $29 million was recorded in goodwill and $12 million was recorded in customer relationships. The license agreements and customer relationships will be amortized over a weighted average useful life of approximately eight years . In addition, at the time of acquisition, the Company recorded a $25 million non-cash charge within transaction-related costs, net in connection with license rights reacquired by the Company. The goodwill is not deductible for tax purposes. Differences between the preliminary allocation of purchase price and the final allocation were not material for Avis and Budget Licensees. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | 6. Intangible Assets Intangible assets consisted of: As of December 31, 2017 As of December 31, 2016 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortized Intangible Assets License agreements (a) $ 281 $ 140 $ 141 $ 261 $ 109 $ 152 Customer relationships (b) 242 119 123 224 90 134 Other (c) 51 18 33 46 12 34 $ 574 $ 277 $ 297 $ 531 $ 211 $ 320 Unamortized Intangible Assets Goodwill $ 1,073 $ 1,007 Trademarks $ 553 $ 550 _________ (a) Primarily amortized over a period ranging from 0 to 40 years with a weighted average life of 18 years . (b) Primarily amortized over a period ranging from 3 to 20 years with a weighted average life of 12 years . (c) Primarily amortized over a period ranging from 4 to 10 years with a weighted average life of 9 years . During 2017, the Company recorded an impairment related to the unamortized Zipcar trademark of $2 million based on a combination of observable and unobservable fair value inputs (Level 3), specifically the Income approach-relief from royalty method, which considers market inputs. Amortization expense relating to all intangible assets was as follows: Year Ended December 31, 2017 2016 2015 License agreements $ 33 $ 35 $ 31 Customer relationships 24 23 21 Other 5 7 7 Total $ 62 $ 65 $ 59 Based on the Company’s amortizable intangible assets at December 31, 2017 , the Company expects related amortization expense of approximately $47 million for 2018 , $42 million for 2019 , $40 million for 2020 , $30 million for 2021 and $24 million for 2022 , excluding effects of currency exchange rates. The carrying amounts of goodwill and related changes are as follows: Americas International Total Company Gross goodwill as of January 1, 2016 $ 2,124 $ 967 $ 3,091 Accumulated impairment losses as of January 1, 2016 (1,587 ) (531 ) (2,118 ) Goodwill as of January 1, 2016 537 436 973 Acquisitions 2 23 25 Currency translation adjustments and other 13 (4 ) 9 Goodwill as of December 31, 2016 552 455 1,007 Acquisitions — 5 5 Currency translation adjustments and other — 61 61 Goodwill as of December 31, 2017 $ 552 $ 521 $ 1,073 |
Vehicle Rental Activities
Vehicle Rental Activities | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Components Of Companys Vehicles [Abstract] | |
Vehicle Rental Activities | 7. Vehicle Rental Activities The components of vehicles, net within assets under vehicle programs are as follows: As of December 31, 2017 2016 Rental vehicles $ 11,652 $ 10,937 Less: Accumulated depreciation (1,652 ) (1,454 ) 10,000 9,483 Vehicles held for sale 626 981 Vehicles, net $ 10,626 $ 10,464 The components of vehicle depreciation and lease charges, net are summarized below: Year Ended December 31, 2017 2016 2015 Depreciation expense $ 1,947 $ 1,877 $ 1,837 Lease charges 222 180 156 (Gain) loss on sale of vehicles, net 52 (10 ) (60 ) Vehicle depreciation and lease charges, net $ 2,221 $ 2,047 $ 1,933 At December 31, 2017 , 2016 and 2015 , the Company had payables related to vehicle purchases included in liabilities under vehicle programs - other of $346 million , $321 million and $269 million , respectively, and receivables related to vehicle sales included in assets under vehicle programs - receivables from vehicle manufacturers and other of $545 million , $520 million and $433 million , respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8. Income Taxes On December 22, 2017 the U.S. enacted tax reform legislation (“the Tax Act) that made substantial changes to corporate income tax laws. Among the key provisions are, a U.S. corporate tax rate reduction from 35% to 21% effective for tax years beginning January 1, 2018, a one-time transition tax on the deemed repatriation of cumulative earnings from foreign subsidiaries and changes to U.S. taxation of foreign earnings from a worldwide to a territorial tax system effective for tax years beginning January 1, 2018. The Company is recognizing the effects of the Tax Act in its Consolidated Financial Statements in accordance with Staff Accounting Bulletin No. 118, which provides SEC staff guidance for the application of FASB Accounting Standards Codification Topic 740, Income Taxes, in the reporting period that the Tax Act was signed into law. The Company has recorded a provisional income tax benefit of $317 million related to the remeasurement of its net deferred income tax liabilities as a result of the reduced corporate tax rate, and a provisional tax expense of $104 million for the one-time transition tax on the deemed repatriation of cumulative foreign subsidiary earnings. The Company has not finalized the accounting for the effects of the Tax Act due to the complex analysis necessary to determine the historical earnings of foreign subsidiaries, the ability to utilize tax attributes such as foreign tax credits, and the impact of the repeal of the like-kind exchange provision for personal property together with the corresponding impact on deferred tax components and valuation allowances. Any adjustments to these provisional amounts will be recorded when the Company finalizes its accounting of the tax effects within a subsequent measurement period that will not exceed one year from the date of the enactment of the Tax Act. The provision for (benefit from) income taxes consists of the following: Year Ended December 31, 2017 2016 2015 Current Federal $ — $ (1 ) $ (32 ) State 5 3 3 Foreign 37 63 40 Current income tax provision 42 65 11 Deferred Federal (205 ) 51 45 State (5 ) 5 (1 ) Foreign 18 (5 ) 14 Deferred income tax provision (192 ) 51 58 Provision for (benefit from) income taxes $ (150 ) $ 116 $ 69 Pretax income for domestic and foreign operations consists of the following: Year Ended December 31, 2017 2016 2015 United States (a) $ 17 $ 127 $ 258 Foreign 194 152 124 Pretax income $ 211 $ 279 $ 382 __________ (a) For the years ended December 31, 2017 , 2016 and 2015 , includes corporate debt extinguishment costs of $3 million , $27 million and $23 million , respectively. Deferred income tax assets and liabilities are comprised of the following: As of December 31, 2017 2016 Deferred income tax assets: Net tax loss carryforwards $ 1,104 $ 1,587 Accrued liabilities and deferred revenue 216 281 Tax credits 24 62 Depreciation and amortization 4 2 Acquisition and integration-related liabilities 2 5 Provision for doubtful accounts 8 7 Other 48 52 Valuation allowance (a) (331 ) (357 ) Deferred income tax assets 1,075 1,639 Deferred income tax liabilities: Depreciation and amortization 121 112 Prepaid expenses 20 32 Other 3 2 Deferred income tax liabilities 144 146 Deferred income tax assets, net $ 931 $ 1,493 __________ (a) The valuation allowance of $331 million at December 31, 2017 relates to tax loss carryforwards and certain deferred tax assets of $302 million and $29 million , respectively. The valuation allowance will be reduced when and if the Company determines it is more likely than not that the related deferred income tax assets will be realized. The valuation allowance of $357 million at December 31, 2016 relates to tax loss carryforwards, foreign tax credits and certain deferred tax assets of $289 million , $39 million and $29 million , respectively. Deferred income tax assets and liabilities related to vehicle programs are comprised of the following: As of December 31, 2017 2016 Deferred income tax assets: Depreciation and amortization $ 58 $ 52 Deferred income tax liabilities: Depreciation and amortization 1,652 2,481 Deferred income tax liabilities under vehicle programs, net $ 1,594 $ 2,429 At December 31, 2017 , the Company had U.S. federal net operating loss carryforwards of approximately $3.2 billion , most of which expire in 2031 . Such net operating loss carryforwards are primarily related to accelerated depreciation of the Company’s U.S. vehicles. Currently, the Company does not record valuation allowances on the majority of its U.S. federal tax loss carryforwards as there are adequate deferred tax liabilities that could be realized within the carryforward period. At December 31, 2017 , the Company had foreign net operating loss carryforwards of approximately $889 million with an indefinite utilization period. The Tax Act provides companies the ability to offset the one-time transition tax on cumulative earnings of foreign subsidiaries with available tax attributes or elect to pay the tax over an eight year period. Although the Tax Act generally eliminates U.S. federal income taxes on dividends from foreign subsidiaries effective for years beginning January 1, 2018, the Company continues to evaluate the expected manner of recovery to determine whether or not to continue to assert indefinite reinvestment on a part or all of its undistributed foreign earnings. This requires the Company to analyze its global working capital and cash requirements in light of the Tax Act and the potential tax liabilities attributable to a repatriation to the U.S., such as foreign withholding taxes and U.S. tax on currency transaction gains or losses. The Company did not provide for U.S. taxes related to its undistributed earnings of approximately $1.3 billion as of December 31, 2017. The Company will record the tax effects of any change in its assertion within a subsequent measurement period that will not exceed one year from the date of the enactment of the Tax Act. The reconciliation between the U.S. federal income tax statutory rate and the Company’s effective income tax rate is as follows: Year Ended December 31, 2017 2016 2015 U.S. federal statutory rate 35.0 % 35.0 % 35.0 % Adjustments to reconcile to the effective rate: State and local income taxes, net of federal tax benefits 3.8 2.0 2.8 Changes in valuation allowances (4.7 ) (0.2 ) (0.6 ) Taxes on foreign operations at rates different than statutory U.S. federal rates (3.6 ) 3.1 3.7 Resolution of a prior-year tax matter (a) — — (25.6 ) Stock-based compensation (3.4 ) — — Non-deductible transaction-related costs — — 0.9 U.S. Tax Act benefit (100.8 ) — — Other non-deductible expenses 2.2 1.7 1.8 Other 0.4 — 0.1 (71.1 )% 41.6 % 18.1 % __________ a) For the year ended December 31, 2015, the Company recognized a $98 million income tax benefit from the resolution of a prior - year income tax matter. The following is a tabular reconciliation of the gross amount of unrecognized tax benefits for the year: 2017 2016 2015 Balance at January 1 $ 59 $ 56 $ 63 Additions for tax positions related to current year 6 3 6 Additions for tax positions for prior years 9 3 3 Reductions for tax positions for prior years (10 ) (3 ) (14 ) Settlements — — (1 ) Statute of limitations (1 ) — (1 ) Balance at December 31 $ 63 $ 59 $ 56 The Company does not anticipate that total unrecognized tax benefits will change significantly in 2018 . The Company is subject to taxation in the United States and various foreign jurisdictions. As of December 31, 2017, the 2014 through 2016 tax years generally remain subject to examination by the federal tax authorities. The 2012 through 2016 tax years generally remain subject to examination by various state tax authorities. In significant foreign jurisdictions, the 2011 through 2016 tax years generally remain subject to examination by their respective tax authorities. Substantially all of the gross amount of the unrecognized tax benefits at December 31, 2017 , 2016 and 2015 , if recognized, would affect the Company’s provision for, or benefit from, income taxes. As of December 31, 2017 , the Company’s unrecognized tax benefits were offset by tax loss carryforwards in the amount of $19 million . The following table presents unrecognized tax benefits: As of December 31, 2017 2016 Unrecognized tax benefit in non-current income taxes payable (a) $ 46 $ 40 Accrued interest payable on potential tax liabilities (b) 26 29 __________ (a) Pursuant to the agreements governing the disposition of certain subsidiaries in 2006, the Company is entitled to indemnification for certain pre-disposition tax contingencies. As of December 31, 2017 and 2016 , $13 million and $15 million , respectively, of unrecognized tax benefits are related to tax contingencies for which the Company believes it is entitled to indemnification. (b) The Company recognizes potential interest related to unrecognized tax benefits within interest expense related to corporate debt, net on the accompanying Consolidated Statements of Operations. Penalties incurred during the years ended December 31, 2017 , 2016 and 2015 , were not significant and were recognized as a component of the provision for income taxes. |
Other Current Assets
Other Current Assets | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Schedule Of Other Current Assets [Abstract] | |
Other Current Assets | 9. Other Current Assets Other current assets consisted of: As of December 31, 2017 2016 Prepaid expenses $ 196 $ 212 Sales and use taxes 174 153 Other 163 154 Other current assets $ 533 $ 519 |
Property and Equipment, net
Property and Equipment, net | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, net | 10. Property and Equipment, net Property and equipment, net consisted of: As of December 31, 2017 2016 Land $ 49 $ 47 Buildings and leasehold improvements 626 597 Capitalized software 583 524 Furniture, fixtures and equipment 387 354 Projects in process 118 99 Buses and support vehicles 93 91 1,856 1,712 Less: Accumulated depreciation and amortization (1,152 ) (1,027 ) Property and equipment, net $ 704 $ 685 Depreciation and amortization expense relating to property and equipment during 2017 , 2016 and 2015 was $197 million , $188 million and $159 million , respectively (including $95 million , $87 million and $61 million , respectively, of amortization expense relating to capitalized software). |
Accounts Payable and Other Curr
Accounts Payable and Other Current Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Other Current Liabilities | 11. Accounts Payable and Other Current Liabilities Accounts payable and other current liabilities consisted of: As of December 31, 2017 2016 Accounts payable $ 359 $ 343 Accrued sales and use taxes 218 206 Accrued payroll and related 176 173 Public liability and property damage insurance liabilities – current 145 141 Deferred revenue – current 135 114 Accrued commissions 117 86 Accrued insurance 103 70 Other 366 355 Accounts payable and other current liabilities $ 1,619 $ 1,488 |
Long-term Debt and Borrowing Ar
Long-term Debt and Borrowing Arrangements | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Long-term Debt and Borrowing Arrangements | 12. Long-term Corporate Debt and Borrowing Arrangements Long-term debt and other borrowing arrangements consisted of: Maturity As of December 31, 2017 2016 Floating Rate Senior Notes December 2017 — 249 Floating Rate Term Loan March 2019 — 144 6% euro-denominated Senior Notes March 2021 — 194 Floating Rate Term Loan (a) March 2022 1,136 816 5⅛% Senior Notes June 2022 400 400 5½% Senior Notes April 2023 675 675 6⅜% Senior Notes April 2024 350 350 4⅛% euro-denominated Senior Notes November 2024 360 316 5¼% Senior Notes March 2025 375 375 4½% euro-denominated Senior Notes May 2025 300 — Other (b) 49 57 Deferred financing fees (46 ) (53 ) Total 3,599 3,523 Less: Short-term debt and current portion of long-term debt 26 279 Long-term debt $ 3,573 $ 3,244 __________ (a) The floating rate term loan is part of the Company’s senior revolving credit facility, which is secured by pledges of capital stock of certain subsidiaries of the Company, and liens on substantially all of the Company’s intellectual property and certain other real and personal property. (b) Primarily includes capital leases which are secured by liens on the related assets. Term Loan Floating Rate Term Loan due 2019. The Company issued $500 million , $200 million , and $300 million of Floating Rate Term Loan due 2019 in March 2012, October 2012 and October 2013, respectively, under the Company’s senior credit facility. The term loan bears interest at the greater of three-month LIBOR or 0.75% , plus 225 basis points, for an aggregate rate of 3.25% at December 31, 2016. In March 2017, the Company repaid all of it outstanding Floating Rate Term Loan due 2019. Floating Rate Term Loan due 2022. In May 2016, the Company extended the maturity date for $825 million of its $970 million existing corporate floating rate term loan borrowing by three years to March 2022. The extended portion then bore interest at LIBOR plus 2.50% , subject to a LIBOR floor of 0.75% , for an aggregate rate of 3.50% ; however, the Company entered into an interest rate swap to hedge $600 million of its interest rate exposure related to the floating rate term loan at an aggregate rate of 4.21% . In March 2017, the Company increased its Floating Rate Term Loan due 2022 to $1.1 billion and reduced the loan interest rate to three-month LIBOR plus 2.00% , for an aggregate rate of 3.70% ; however, the Company entered into an interest rate swap to hedge $700 million of its interest rate exposure related to the floating rate term loan at an aggregate rate of 3.79% . The Company used the incremental term loan proceeds to repay all of its outstanding Floating Rate Term Loan due 2019. In June 2017, the Company used the remaining proceeds to redeem the remainder of its outstanding Floating Rate Senior Notes due 2017. Senior Notes Floating Rate Senior Notes due 2017. In November 2013, the Company issued its Floating Rate Senior Notes at 98.75% of their face value for aggregate proceeds of $247 million . The interest rate on these notes is equal to three-month LIBOR plus 275 basis points, for an aggregate rate of 3.68% at December 31, 2017 ; however, the Company has entered into an interest rate swap to hedge its interest rate exposure related to these notes at an aggregate rate of 3.58% . In June 2017, the Company repaid all of it outstanding Floating Rate Senior Notes due 2017. 6% euro-denominated Senior Notes due 2021. In March 2013, the Company issued €250 million (approximately $325 million , at issuance) of 6% euro-denominated Senior Notes due March 2021, at par, with interest payable semi-annually. The notes are unsecured obligations of the Company’s Avis Budget Finance plc subsidiary, are guaranteed on a senior basis by the Company and certain of its domestic subsidiaries and rank equally with all of the Company’s existing senior unsecured debt. The Company has the right to redeem these notes in whole or in part on or after April 1, 2016 at specified redemption prices plus accrued interest. In March 2014, the Company issued €200 million (approximately $275 million , at issuance) of additional 6% euro-denominated Senior Notes due 2021. These notes were sold at 106.75% of their face value for aggregate proceeds of approximately $295 million , with a yield to maturity of 4.85% . In April 2014, the Company used the proceeds to repurchase $292 million principal amount of its 8¼% Senior Notes. In October 2016, the Company redeemed €275 million (approximately $302 million ) of its principal amount for €287 million (approximately $315 million ) plus accrued interest. In April 2017, the Company redeemed its outstanding €175 million (approximately $187 million ) principal amount for €180 million (approximately $193 million ) plus accrued interest. 5 ⅛ % Senior Notes due 2022. In May 2014, the Company issued $400 million of 5⅛% Senior Notes due 2022 at par. In June 2014, the Company used the proceeds to repurchase the remaining $395 million principal amount of its 8¼% Senior Notes. The notes were issued at par, with interest payable semi-annually. The Company has the right to redeem these notes in whole or in part at any time on or after June 1, 2017 at specified redemption prices plus accrued interest. 5½% Senior Notes due 2023. In April 2013, the Company completed an offering of $500 million of 5½% Senior Notes due April 2023. The notes were issued at par, with interest payable semi-annually. The Company has the right to redeem these notes in whole or in part on or after April 1, 2018 at specified redemption prices plus accrued interest. In November 2014, the Company issued $175 million of additional 5½% Senior Notes due 2023 at 99.625% of their face value, with interest payable semi-annually. The Company has the right to redeem these notes in whole or in part on or after April 1, 2018 at specified redemption prices plus accrued interest. The Company used the proceeds from the issuance to partially fund the acquisition of its Budget licensee for Southern California and Las Vegas. 6⅜% Senior Notes due 2024 . In March 2016, the Company issued $350 million of 6⅜% Senior Notes due 2024 at par, with interest payable semi-annually. The Company has the right to redeem these notes in whole or in part at any time on or after April 1, 2019 at specified redemption prices plus accrued interest. In May 2016, the Company used the net proceeds from the offering to redeem $300 million principal amount of its previous 4⅞% Senior Notes and for general corporate purposes. 4⅛% euro-denominated Senior Notes due 2024. In September 2016, the Company issued €300 million (approximately $337 million , at issuance) of 4⅛% euro-denominated Senior Notes due 2024 at par, with interest payable semi-annually. The notes are unsecured obligations of the Company’s Avis Budget Finance plc subsidiary, are guaranteed on a senior basis by the Company and certain of its domestic subsidiaries and rank equally with all of the Company’s existing senior unsecured debt. The Company has the right to redeem these notes in whole or in part at any time on or after November 15, 2019 at specified redemption prices plus accrued interest. In October 2016, the Company used the net proceeds from the offering primarily to redeem €275 million of its outstanding 6% euro-denominated Senior Notes due 2021. 5¼% Senior Notes due 2025 . In March 2015, the Company issued $375 million of 5¼% Senior Notes due 2025 at par, with interest payable semi-annually. The Company has the right to redeem these notes in whole or in part at any time on or after March 15, 2020 at specified redemption prices plus accrued interest. In April 2015, the Company used net proceeds from the offering to redeem the remaining $223 million principal amount of its 9¾% Senior Notes and to partially fund the acquisition of Maggiore. 4½% euro-denominated Senior Notes due 2025. In March 2017, the Company issued €250 million of 4½% euro-denominated Senior Notes due 2025, at par, with interest payable semi-annually. The notes are unsecured obligations of the Company’s Avis Budget Finance plc subsidiary, are guaranteed on a senior basis by the Company and certain of its domestic subsidiaries and rank equally with all of the Company’s existing senior unsecured debt. The Company has the right to redeem these notes in whole or in part on or after May 15, 2020 at specified redemption prices plus accrued interest. In April 2017, the Company used the net proceeds from the offering to redeem its outstanding €175 million principal amount of 6% euro-denominated Senior Notes due 2021 for €180 million plus accrued interest. In June 2017, the Company used the remaining proceeds to redeem a portion of its Floating Rate Senior Notes due 2017. The 5⅛% Senior Notes, the 5½% Senior Notes, 6⅜% Senior Notes and the 5¼% Senior Notes are senior unsecured obligations of the Company’s Avis Budget Car Rental, LLC (“ABCR”) subsidiary, are guaranteed by the Company and certain of its domestic subsidiaries and rank equally in right of payment with all of the Company’s existing and future senior unsecured indebtedness. In connection with the debt amendments and repayments for the years ended December 31, 2017 , 2016 and 2015 , the Company recorded $3 million , $27 million and $23 million in early extinguishment of debt costs, respectively. Debt Maturities The following table provides contractual maturities of the Company’s corporate debt at December 31, 2017 : Year Amount 2018 $ 26 2019 20 2020 16 2021 14 2022 1,493 Thereafter 2,076 $ 3,645 Committed Credit Facilities And Available Funding Arrangements At December 31, 2017 , the committed corporate credit facilities available to the Company and/or its subsidiaries were as follows: Total Capacity Outstanding Borrowings Letters of Credit Issued Available Capacity Senior revolving credit facility maturing 2021 (a) $ 1,800 $ — $ 782 $ 1,018 Other facilities (b) 3 3 — — __________ (a) The senior revolving credit facility bears interest at one-month LIBOR plus 200 basis points and is part of the Company’s senior credit facility, which is secured by pledges of capital stock of certain subsidiaries of the Company, and liens on substantially all of the Company’s intellectual property and certain other real and personal property. (b) These facilities encompass bank overdraft lines of credit, bearing interest of 3.10% to 3.18% as of December 31, 2017. At December 31, 2017 and 2016 , the Company had various uncommitted credit facilities available, which bear interest at rates of 0.75% to 5.25% , under which it had drawn approximately $2 million and $5 million , respectively. Debt Covenants The agreements governing the Company’s indebtedness contain restrictive covenants, including restrictions on dividends paid to the Company by certain of its subsidiaries, the incurrence of additional indebtedness by the Company and certain of its subsidiaries, acquisitions, mergers, liquidations, and sale and leaseback transactions. The Company’s senior credit facility also contains a maximum leverage ratio requirement. As of December 31, 2017 , the Company was in compliance with the financial covenants governing its indebtedness. |
Debt Under Vehicle Programs and
Debt Under Vehicle Programs and Borrowing Arrangements | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt Under Vehicle Programs and Borrowing Arrangements | 13. Debt under Vehicle Programs and Borrowing Arrangements Debt under vehicle programs, including related party debt due to Avis Budget Rental Car Funding (AESOP) LLC (“Avis Budget Rental Car Funding”), consisted of: As of December 31, 2017 2016 Americas – Debt due to Avis Budget Rental Car Funding $ 6,516 $ 6,733 Americas – Debt borrowings 660 577 International – Debt borrowings (a) 1,942 1,449 International – Capital leases 146 162 Other 1 7 Deferred financing fees (b) (44 ) (50 ) Total $ 9,221 $ 8,878 __________ (a) The increase reflects additional borrowings principally to fund increases in the Company's car rental fleet. (b) Deferred financing fees related to Debt due to Avis Budget Rental Car Funding as of December 31, 2017 and 2016 were $36 million and $38 million, respectively. Americas Debt due to Avis Budget Rental Car Funding . Avis Budget Rental Car Funding, an unconsolidated bankruptcy remote qualifying special purpose limited liability company, issues privately placed notes to investors as well as to banks and bank-sponsored conduit entities. Avis Budget Rental Car Funding uses the proceeds from its note issuances to make loans to a wholly-owned subsidiary of the Company, AESOP Leasing LP (“AESOP Leasing”), on a continuing basis. AESOP Leasing is required to use the proceeds of such loans to acquire or finance the acquisition of vehicles used in the Company’s rental car operations. By issuing debt through the Avis Budget Rental Car Funding program, the Company pays a lower rate of interest than if it had issued debt directly to third parties. Avis Budget Rental Car Funding is not consolidated, as the Company is not the “primary beneficiary” of Avis Budget Rental Car Funding. The Company determined that it is not the primary beneficiary because the Company does not have the obligation to absorb the potential losses or receive the benefits of Avis Budget Rental Car Funding’s activities since the Company’s only significant source of variability in the earnings, losses or cash flows of Avis Budget Rental Car Funding is exposure to its own creditworthiness, due to its loan from Avis Budget Rental Car Funding. Because Avis Budget Rental Car Funding is not consolidated, AESOP Leasing’s loan obligations to Avis Budget Rental Car Funding are reflected as related party debt on the Company’s Consolidated Balance Sheets. The Company also has an asset within Assets under vehicle programs on its Consolidated Balance Sheets which represents securities issued to the Company by Avis Budget Rental Car Funding. AESOP Leasing is consolidated, as the Company is the “primary beneficiary” of AESOP Leasing; as a result, the vehicles purchased by AESOP Leasing remain on the Company’s Consolidated Balance Sheets. The Company determined it is the primary beneficiary of AESOP Leasing, as it has the ability to direct its activities, an obligation to absorb a majority of its expected losses and the right to receive the benefits of AESOP Leasing’s activities. AESOP Leasing’s vehicles and related assets, which as of December 31, 2017 , approximate $8.2 billion and many of which are subject to manufacturer repurchase and guaranteed depreciation agreements, collateralize the debt issued by Avis Budget Rental Car Funding. The assets and liabilities of AESOP Leasing are presented on the Company’s Consolidated Balance Sheets within Assets under vehicle programs and Liabilities under vehicle programs, respectively. The assets of AESOP Leasing, included within assets under vehicle programs (excluding the investment in Avis Budget Rental Car Funding (AESOP) LLC—related party) are restricted. Such assets may be used only to repay the respective AESOP Leasing liabilities, included within Liabilities under vehicle programs, and to purchase new vehicles, although if certain collateral coverage requirements are met, AESOP Leasing may pay dividends from excess cash. The creditors of AESOP Leasing and Avis Budget Rental Car Funding have no recourse to the general credit of the Company. The Company periodically provides Avis Budget Rental Car Funding with non-contractually required support, in the form of equity and loans, to serve as additional collateral for the debt issued by Avis Budget Rental Car Funding. The business activities of Avis Budget Rental Car Funding are limited primarily to issuing indebtedness and using the proceeds thereof to make loans to AESOP Leasing for the purpose of acquiring or financing the acquisition of vehicles to be leased to the Company’s rental car subsidiaries and pledging its assets to secure the indebtedness. Because Avis Budget Rental Car Funding is not consolidated by the Company, its results of operations and cash flows are not reflected within the Company’s financial statements. During March 2016 and June 2016 , Avis Budget Rental Car Funding issued approximately $450 million in asset-backed notes with an expected final payment date of June 2021 and approximately $500 million in asset-backed notes with an expected final payment date of November 2021 , respectively. During March 2017 and December 2017 , Avis Budget Rental Car Funding issued approximately $600 million in asset-backed notes with an expected final payment date of September 2022 and $500 million in asset-backed notes with an expected final payment date of March 2023 , respectively. The Company used the proceeds from these borrowings to fund the repayment of maturing vehicle-backed debt and the acquisition of rental cars in the United States. Borrowings under the Avis Budget Rental Car Funding program primarily represent fixed rate notes and had a weighted average interest rate of 3% as of December 31, 2017 and 2016 . Debt borrowings . The Company finances the acquisition of vehicles used in its Canadian rental operations through a consolidated, bankruptcy remote special-purpose entity, which issues privately placed notes to investors and bank-sponsored conduits. The Company finances the acquisition of fleet for its truck rental operations in the United States through a combination of debt facilities and leases. These debt borrowings represent a mix of fixed and floating rate debt and had a weighted average interest rate of 3% and 4% as of December 31, 2017 and 2016 , respectively. International Debt borrowings . In 2013, the Company entered into a three-year, €500 million (approximately $687 million) European rental fleet securitization program, which is used to finance fleet purchases for certain of the Company’s European operations. During 2017, 2016, 2015 and 2014, the Company increased its capacity under this program by €250 million (approximately $281 million), €400 million (approximately $458 million), €210 million (approximately $235 million) and €290 million (approximately $370 million), respectively, and extended the securitization’s maturity to 2019. The Company finances the acquisition of vehicles used in its International rental car operations through this and other consolidated, bankruptcy remote special-purpose entities, which issue privately placed notes to banks and bank-sponsored conduits. The International borrowings primarily represent floating rate notes and had a weighted average interest rate of 2% as of December 31, 2017 and 2016 . Capital leases. The Company obtained a portion of its International vehicles under capital lease arrangements. For the year ended December 31, 2017 and 2016 , the weighted average interest rate on these borrowings were 1% and 2% , respectively. All capital leases are on a fixed repayment basis and interest rates are fixed at the contract date. Debt Maturities The following table provides the contractual maturities of the Company’s debt under vehicle programs, including related party debt due to Avis Budget Rental Car Funding, at December 31, 2017 : Debt under Vehicle Programs 2018 (a) $ 1,886 2019 3,170 2020 1,868 2021 1,019 2022 883 Thereafter 439 $ 9,265 __________ (a) Vehicle-backed debt maturing within one year primarily represents term asset-backed securities. Committed Credit Facilities And Available Funding Arrangements The following table presents available funding under the Company’s debt arrangements related to its vehicle programs, including related party debt due to Avis Budget Rental Car Funding, at December 31, 2017 : Total Capacity (a) Outstanding Borrowings Available Capacity Americas – Debt due to Avis Budget Rental Car Funding (b) $ 9,296 $ 6,516 $ 2,780 Americas – Debt borrowings (c) 924 660 264 International – Debt borrowings (d) 2,942 1,942 1,000 International – Capital leases (e) 169 146 23 Other 1 1 — Total $ 13,332 $ 9,265 $ 4,067 __________ (a) Capacity is subject to maintaining sufficient assets to collateralize debt. (b) The outstanding debt is collateralized by $8.0 billion of underlying vehicles and related assets. (c) The outstanding debt is collateralized by $0.9 billion of underlying vehicles and related assets. (d) The outstanding debt is collateralized by $2.3 billion of underlying vehicles and related assets. (e) The outstanding debt is collateralized by $0.2 billion of underlying vehicles and related assets. Debt Covenants The agreements under the Company’s vehicle-backed funding programs contain restrictive covenants, including restrictions on dividends paid to the Company by certain of its subsidiaries and restrictions on indebtedness, mergers, liens, liquidations and sale and leaseback transactions, and in some cases also require compliance with certain financial requirements. As of December 31, 2017 , the Company is not aware of any instances of non-compliance with any of the financial or restrictive covenants contained in the debt agreements under its vehicle-backed funding programs. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 14. Commitments and Contingencies Lease Commitments The Company is committed to making rental payments under noncancelable operating leases covering various facilities and equipment. Many of the Company’s operating leases for facilities contain renewal options. These renewal options vary, but the majority include clauses for various term lengths and prevailing market rate rents. Future minimum lease payments required under noncancelable operating leases, including minimum concession fees charged by airport authorities, which in many locations are recoverable from vehicle rental customers, as of December 31, 2017 , are as follows: Amount 2018 $ 729 2019 611 2020 401 2021 291 2022 183 Thereafter 549 $ 2,764 The future minimum lease payments in the above table have been reduced by minimum future sublease rental inflows in the aggregate of $3 million for all periods shown in the table. The Company maintains concession agreements with various airport authorities that allow the Company to conduct its car rental operations on site. In general, concession fees for airport locations are based on a percentage of total commissionable revenue (as defined by each airport authority), subject to minimum annual guaranteed amounts. These concession fees, which are included in the Company’s total rent expense, were as follows for the years ended December 31: 2017 2016 2015 Rent expense (including minimum concession fees) $ 715 $ 699 $ 679 Contingent concession expense 221 214 195 936 913 874 Less: sublease rental income (4 ) (5 ) (5 ) Total $ 932 $ 908 $ 869 Commitments under capital leases, other than those within the Company’s vehicle rental programs, for which the future minimum lease payments have been reflected in Note 13-Debt Under Vehicle Programs and Borrowing Arrangements, are not significant. The Company leases a portion of its vehicles under operating leases, some of which extend through 2024 . As of December 31, 2017 , the Company has guaranteed up to $302 million of residual values for these vehicles at the end of their respective lease terms. The Company believes that, based on current market conditions, the net proceeds from the sale of these vehicles at the end of their lease terms will equal or exceed their net book values and therefore has not recorded a liability related to guaranteed residual values. Contingencies In 2006, the Company completed the spin-offs of its Realogy and Wyndham subsidiaries. The Company does not believe that the impact of any resolution of pre-existing contingent liabilities in connection with the spin-offs should result in a material liability to the Company in relation to its consolidated financial position or liquidity, as Realogy and Wyndham each have agreed to assume responsibility for these liabilities. The Company is also named in litigation that is primarily related to the businesses of its former subsidiaries, including Realogy and Wyndham. The Company is entitled to indemnification from such entities for any liability resulting from such litigation. In February 2017, following a state court trial in Georgia, a jury found the Company liable for damages in a case brought by a plaintiff who was injured in a vehicle accident allegedly caused by an employee of an independent contractor of the Company who was acting outside of the scope of employment. In March 2017, the Company was also found liable for damages in a companion case arising from the same incident. The Company considers the attribution of liability to the Company, and the amount of damages awarded, to be unsupported by the facts of these cases and intends to appeal the verdicts. The Company has recognized a liability for the expected loss related to these cases, net of recoverable insurance proceeds, of approximately $12 million . The Company is involved in claims, legal proceedings and governmental inquiries that are incidental to its vehicle rental and car sharing operations, including, among others, contract and licensee disputes, competition matters, employment and wage-and-hour claims, insurance and liability claims, intellectual property claims, business practice disputes and other regulatory, environmental, commercial and tax matters. Litigation is inherently unpredictable and, although the Company believes that its accruals are adequate and/or that it has valid defenses in these matters, unfavorable resolutions could occur. The Company estimates that the potential exposure resulting from adverse outcomes of legal proceedings in which it is reasonably possible that a loss may be incurred could, in the aggregate, be up to approximately $50 million in excess of amounts accrued as of December 31, 2017; however, the Company does not believe that the impact should result in a material liability to the Company in relation to its consolidated financial condition or results of operations. Commitments to Purchase Vehicles The Company maintains agreements with vehicle manufacturers under which the Company has agreed to purchase approximately $8.1 billion of vehicles from manufacturers over the next 12 months financed primarily through the issuance of vehicle-backed debt and cash received upon the disposition of vehicles. Certain of these commitments are subject to the vehicle manufacturers’ satisfying their obligations under their respective repurchase and guaranteed depreciation agreements. Other Purchase Commitments In the normal course of business, the Company makes various commitments to purchase other goods or services from specific suppliers, including those related to marketing, advertising, computer services and capital expenditures. As of December 31, 2017 , the Company had approximately $224 million of purchase obligations, which extend through 2022. Concentrations Concentrations of credit risk at December 31, 2017 , include (i) risks related to the Company’s repurchase and guaranteed depreciation agreements with domestic and foreign car manufacturers, including Ford, Fiat Chrysler and General Motors , and primarily with respect to receivables for program cars that have been disposed but for which the Company has not yet received payment from the manufacturers and (ii) risks related to Realogy and Wyndham, including receivables of $23 million and $14 million , respectively, related to certain contingent, income tax and other corporate liabilities assumed by Realogy and Wyndham in connection with their disposition. Asset Retirement Obligations The Company maintains a liability for asset retirement obligations. An asset retirement obligation is a legal obligation to perform certain activities in connection with the retirement, disposal or abandonment of assets. The Company’s asset retirement obligations, which are measured at discounted fair values, are primarily related to the removal of underground gasoline storage tanks at its rental facilities. The liability accrued for asset retirement obligations was $23 million and $24 million at December 31, 2017 and 2016 , respectively. Standard Guarantees/Indemnifications In the ordinary course of business, the Company enters into numerous agreements that contain standard guarantees and indemnities whereby the Company agrees to indemnify another party, among other things, for performance under contracts and any breaches of representations and warranties thereunder. In addition, many of these parties are also indemnified against any third-party claim resulting from the transaction that is contemplated in the underlying agreement. Such guarantees or indemnifications are granted under various agreements, including those governing (i) purchases, sales or outsourcing of assets, businesses or activities, (ii) leases of real estate, (iii) licensing of trademarks, (iv) access to credit facilities and use of derivatives and (v) issuances of debt or equity securities. The guarantees or indemnifications issued are for the benefit of the (i) buyers in sale agreements and sellers in purchase agreements, (ii) landlords in lease contracts, (iii) licensees under licensing agreements, (iv) financial institutions in credit facility arrangements and derivative contracts and (v) underwriters and placement agents in debt or equity security issuances. While some of these guarantees extend only for the duration of the underlying agreement, many may survive the expiration of the term of the agreement or extend into perpetuity (unless subject to a legal statute of limitations). There are no specific limitations on the maximum potential amount of future payments that the Company could be required to make under these guarantees, nor is the Company able to develop an estimate of the maximum potential amount of future payments to be made under these guarantees as the triggering events are not subject to predictability. With respect to certain of the aforementioned guarantees, such as indemnifications provided to landlords against third-party claims for the use of real estate property leased by the Company, the Company maintains insurance coverage that mitigates its potential exposure. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Stockholders' Equity | 15. Stockholders’ Equity Cash Dividend Payments During 2017 , 2016 and 2015 , the Company did not declare or pay any cash dividends. The Company’s ability to pay dividends to holders of its common stock is limited by the Company’s senior credit facility, the indentures governing its senior notes and its vehicle financing programs. Share Repurchases The Company’s Board of Directors has authorized the repurchase of up to approximately $1.5 billion of its common stock under a plan originally approved in 2013 and subsequently expanded, most recently in 2016. During 2017 , 2016 and 2015, the Company repurchased approximately 27 million shares of common stock at a cost of $1.0 billion under the program. As of December 31, 2017 , approximately $100 million of authorization remained available to repurchase common stock under this plan. Accumulated Other Comprehensive Income (Loss) The components of accumulated other comprehensive income (loss) are as follows: Currency Translation Adjustments Net Unrealized Gains (Losses) on Cash Flow Hedges (a) Net Unrealized Gains (Losses) on Available-For-Sale Securities Minimum Pension Liability Adjustment (b) Accumulated Other Comprehensive Income (Loss) Balance, January 1, 2015 $ 51 $ (1 ) $ 2 $ (74 ) $ (22 ) Other comprehensive income (loss) before reclassifications (131 ) (6 ) (2 ) 6 (133 ) Amounts reclassified from accumulated other comprehensive income (loss) — 5 — 3 8 Net current-period other comprehensive income (loss) (131 ) (1 ) (2 ) 9 (125 ) Balance, December 31, 2015 (80 ) (2 ) — (65 ) (147 ) Other comprehensive income (loss) before reclassifications 41 — 1 (57 ) (15 ) Amounts reclassified from accumulated other comprehensive income (loss) — 4 — 4 8 Net current-period other comprehensive income (loss) 41 4 1 (53 ) (7 ) Balance, December 31, 2016 (39 ) 2 1 (118 ) (154 ) Other comprehensive income (loss) before reclassifications 110 1 1 11 123 Amounts reclassified from accumulated other comprehensive income (loss) — 2 — 5 7 Net current-period other comprehensive income (loss) 110 3 1 16 130 Balance, December 31, 2017 $ 71 $ 5 $ 2 $ (102 ) $ (24 ) __________ All components of accumulated other comprehensive income (loss) are net of tax, except currency translation adjustments, which exclude income taxes related to indefinite investments in foreign subsidiaries (see Note 8-Income Taxes for potential impacts of the Tax Act) and include a $33 million gain, net of tax, related to the Company’s hedge of its investment in euro-denominated foreign operations (See Note 18-Financial Instruments). As a result of the Tax Act, management is evaluating its intention to continue to indefinitely reinvest in foreign subsidiaries. (a) For the years ended December 31, 2017 , 2016 and 2015 , the amounts reclassified from accumulated other comprehensive income (loss) into corporate interest expense were $4 million ( $2 million , net of tax), $6 million ( $4 million , net of tax) and $7 million ( $4 million , net of tax), respectively. For the years ended December 31, 2016 and 2015 , amounts reclassified from accumulated comprehensive income (loss) into vehicle interest expense were $1 million ( $0 million , net of tax) and $1 million ( $1 million , net of tax), respectively. (b) For the years ended December 31, 2017 , 2016 and 2015 , amounts reclassified from accumulated other comprehensive income (loss) into selling, general and administrative expenses were $8 million ( $5 million , net of tax), $6 million ( $4 million , net of tax) and $5 million ( $3 million , net of tax), respectively. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | 16. Stock-Based Compensation The Company’s Amended and Restated Equity and Incentive Plan provides for the grant of options, stock appreciation rights, restricted stock, restricted stock units (“RSUs”) and other stock- or cash-based awards to employees, directors and other individuals who perform services for the Company and its subsidiaries. The maximum number of shares reserved for grant of awards under the plan is 20.1 million , with approximately 4.0 million shares available as of December 31, 2017 . The Company typically settles stock-based awards with treasury shares. Time-based awards generally vest ratably over a three-year period following the date of grant, and performance- or market-based awards generally vest three years following the date of grant based on the attainment of performance- or market-based goals, all of which are subject to a service condition. Cash Unit Awards The fair value of time-based restricted cash units is based on the Company’s stock price on the grant date. Market-vesting restricted cash units generally vest depending on the level of relative total shareholder return achieved by the Company during the period prior to scheduled vesting. Settlement of restricted cash units is based on the Company’s average closing stock price over a specified number of trading days and the value of these awards varies based on changes in the Company’s stock price. Stock Unit Awards Stock unit awards entitle the holder to receive shares of common stock upon vesting on a one-to-one basis. Performance-based RSUs principally vest based upon the level of performance attained, but vesting can increase (typically by up to 20% ) if certain relative total shareholder return goals are achieved. Market-based RSUs generally vest based on the level of total shareholder return or absolute stock price attainment. The grant date fair value of the performance-based RSUs incorporates the total shareholder return metric, which is estimated using a Monte Carlo simulation model to estimate the Company’s ranking relative to an applicable stock index. During the year ended December 31, 2017, the Company did not issue any stock unit awards containing a market condition. The weighted average assumptions used in the Monte Carlo simulation model to calculate the fair value of the Company’s stock unit awards are outlined in the table below. 2016 2015 Expected volatility of stock price 46% 37% Risk-free interest rate 0.98% 0.74% Valuation period 3 years 3 years Dividend yield 0% 0% Annual activity related to stock units consisted of (in thousands of shares): Number of Shares Weighted Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value (in millions) Time-based RSUs Outstanding at January 1, 2017 878 $ 34.83 Granted (a) 914 35.32 Vested (b) (470 ) 37.12 Forfeited (162 ) 33.07 Outstanding and expected to vest at December 31, 2017 (c) 1,160 $ 34.54 0.9 $ 51 Performance-based and market-based RSUs Outstanding at January 1, 2017 923 $ 34.11 Granted (a) 572 35.21 Vested (b) (146 ) 36.55 Forfeited (355 ) 37.82 Outstanding at December 31, 2017 994 $ 33.06 1.4 $ 44 Outstanding and expected to vest at December 31, 2017 (c) 97 $ 36.64 2.2 $ 4 __________ (a) Reflects the maximum number of stock units assuming achievement of all performance-, market- and time-vesting criteria and does not include those for non-employee directors, which are discussed separately below. The weighted-average fair value of time-based RSUs and performance-based and market-based RSUs granted in 2016 was $25.92 and $23.33 , respectively, and the weighted-average fair value of time-based RSUs and performance-based and market-based RSUs granted in 2015 was $54.70 and $55.51 , respectively. (b) The total fair value of RSUs vested during 2017 , 2016 and 2015 was $23 million , $31 million and $25 million , respectively. The total grant date fair value of cash units vested during the year 2016 was $2 million . (c) Aggregate unrecognized compensation expense related to time-based RSUs and performance-based and market-based RSUs amounted to $31 million and will be recognized over a weighted average vesting period of 1.0 year. Stock Options The annual stock option activity consisted of (in thousands of shares): Number of Options Weighted Weighted Aggregate Intrinsic Value (in millions) Outstanding at January 1, 2017 810 $ 2.91 2.3 $ 27 Granted (a) — — — Exercised (b) (537 ) 0.79 21 Forfeited/expired — — Outstanding and exercisable at December 31, 2017 273 $ 7.08 1.7 $ 10 __________ (a) No stock options were granted during 2016 or 2015 . (b) Stock options exercised during 2016 and 2015 had intrinsic values of $1 million in each period, and the cash received from the exercise of options was insignificant in 2017 , 2016 and 2015 . Non-employee Directors Deferred Compensation Plan The Company grants stock awards on a quarterly basis to non-employee directors representing between 50% and 100% of a director’s annual compensation and such awards can be deferred under the Non-employee Directors Deferred Compensation Plan. During 2017 , 2016 and 2015 , the Company granted 36,000 , 40,000 and 22,000 awards, respectively, to non-employee directors. Employee Stock Purchase Plan The Company is authorized to sell shares of its common stock to eligible employees at 95% of fair market value. This plan has been deemed to be non-compensatory and therefore no compensation expense has been recognized. Stock-Compensation Expense During 2017 , 2016 and 2015 , the Company recorded stock-based compensation expense of $10 million ( $7 million , net of tax), $28 million ( $18 million , net of tax) and $26 million ( $17 million , net of tax), respectively. Approximately $56 million of tax benefits were recorded in accumulated deficit upon adoption of ASU 2016-09 on January 1, 2017 related to these tax deductions (see Note 2-Summary of Significant Accounting Policies). |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | 17. Employee Benefit Plans Defined Contribution Savings Plans The Company sponsors several defined contribution savings plans in the United States and certain foreign subsidiaries that provide certain eligible employees of the Company an opportunity to accumulate funds for retirement. The Company matches portions of the contributions of participating employees on the basis specified by the plans. The Company’s contributions to these plans were $36 million , $33 million and $32 million during 2017 , 2016 and 2015 , respectively. Defined Benefit Pension Plans The Company sponsors defined benefit pension plans in the United States and in certain foreign subsidiaries with some plans offering participation in the plans at the employees’ option. Under these plans, benefits are based on an employee’s years of credited service and a percentage of final average compensation. However, the majority of the plans are closed to new employees and participants are no longer accruing benefits. The funded status of the defined benefit pension plans is recognized on the Consolidated Balance Sheets and the gains or losses and prior service costs or credits that arise during the period, but are not recognized as components of net periodic benefit cost, are recognized as a component of accumulated other comprehensive loss, net of tax. The components of net periodic benefit cost consisted of the following: Year Ended December 31, 2017 2016 2015 Service cost $ 5 $ 4 $ 5 Interest cost 19 21 22 Expected return on plan assets (30 ) (27 ) (31 ) Amortization of unrecognized amounts 8 5 5 Net periodic benefit cost (a) $ 2 $ 3 $ 1 __________ (a) All components of the net periodic benefit cost are recorded within selling, general and administrative expenses. The estimated amount that will be amortized from accumulated other comprehensive loss into net periodic benefit cost in 2018 is $7 million , which consists primarily of net actuarial losses. The Company uses a measurement date of December 31 for its pension plans. The funded status of the pension plans were as follows: As of December 31, Change in Benefit Obligation 2017 2016 Benefit obligation at end of prior year $ 720 $ 656 Service cost 5 4 Interest cost 19 21 Actuarial (gain) loss 15 115 Currency translation adjustment 44 (53 ) Net benefits paid (24 ) (23 ) Benefit obligation at end of current year $ 779 $ 720 Change in Plan Assets Fair value of assets at end of prior year $ 523 $ 527 Actual return on plan assets 59 60 Employer contributions 24 12 Currency translation adjustment 32 (53 ) Net benefits paid (24 ) (23 ) Fair value of assets at end of current year $ 614 $ 523 As of December 31, Funded Status 2017 2016 Classification of net balance sheet assets (liabilities): Non-current assets $ 24 $ — Current liabilities (3 ) (1 ) Non-current liabilities (186 ) (196 ) Net funded status $ (165 ) $ (197 ) The following assumptions were used to determine pension obligations and pension costs for the principal plans in which the Company’s employees participated: For the Year Ended December 31, U.S. Pension Benefit Plans 2017 2016 2015 Discount rate: Net periodic benefit cost 3.90 % 4.40 % 4.00 % Benefit obligation 3.50 % 3.90 % 4.40 % Long-term rate of return on plan assets 7.00 % 7.00 % 7.25 % Non-U.S. Pension Benefit Plans Discount rate: Net periodic benefit cost 2.45 % 3.45 % 3.30 % Benefit obligation 2.55 % 2.45 % 3.45 % Long-term rate of return on plan assets 4.70 % 4.45 % 4.65 % To select discount rates for its defined benefit pension plans, the Company uses a modeling process that involves matching the expected cash outflows of such plans, to yield curves constructed from portfolios of AA-rated fixed-income debt instruments. The Company uses the average yields of the hypothetical portfolios as a discount rate benchmark. The Company’s expected rate of return on plan assets of 7.00% and 4.70% for the U.S. plans and non-U.S. plans, respectively, used to determine pension obligations and pension costs, is a long-term rate based on historic plan asset returns in individual jurisdictions, over varying long-term periods combined with current market expectations and broad asset mix considerations. As of December 31, 2017 , plans with benefit obligations in excess of plan assets had accumulated benefit obligations of $453 million and plan assets of $264 million . As of December 31, 2016 , plans with benefit obligations in excess of plan assets had accumulated benefit obligations of $720 million and plan assets of $523 million . The accumulated benefit obligation for all plans was $769 million and $712 million as of December 31, 2017 and 2016 , respectively. The Company expects to contribute approximately $4 million to the U.S. plans and $5 million to the non-U.S. plans in 2018 . The Company’s defined benefit pension plans’ assets are invested primarily in mutual funds and may change in value due to various risks, such as interest rate and credit risk and overall market volatility. Due to the level of risk associated with investment securities, it is reasonably possible that changes in the values of the pension plans’ investment securities will occur in the near term and that such changes would materially affect the amounts reported in the Company’s financial statements. The defined benefit pension plans’ investment goals and objectives are managed by the Company or Company-appointed trustees with consultation from independent investment advisors. While the objectives may vary slightly by country and jurisdiction, collectively the Company seeks to produce returns on pension plan investments, which are based on levels of liquidity and investment risk that the Company believes are prudent and reasonable, given prevailing capital market conditions. The pension plans’ assets are managed in the long-term interests of the participants and the beneficiaries of the plans. A suitable strategic asset allocation benchmark is determined for each plan to maintain a diversified portfolio, taking into account government requirements, if any, regarding unnecessary investment risk and protection of pension plans’ assets. The Company believes that diversification of the pension plans’ assets is an important investment strategy to provide reasonable assurance that no single security or class of securities will have a disproportionate impact on the pension plans. As such, the Company allocates assets among traditional equity, fixed income (government issued securities, corporate bonds and short-term cash investments) and other investment strategies. The equity component’s purpose is to provide a total return that will help preserve the purchasing power of the assets. The pension plans hold various mutual funds that invest in equity securities and are diversified among funds that invest in large cap, small cap, growth, value and international stocks as well as funds that are intended to “track” an index, such as the S&P 500. The equity investments in the portfolios will represent a greater assumption of market volatility and risk as well as provide higher anticipated total return over the long term. The equity component is expected to approximate 40% - 60% of the plans’ assets. The purpose of the fixed income component is to provide a deflation hedge, to reduce the overall volatility of the pension plans’ assets in relation to the liability and to produce current income. The pension plans hold mutual funds that invest in securities issued by governments, government agencies and corporations. The fixed income component is expected to approximate 40% - 60% of the plans’ assets. The following table presents the defined benefit pension plans’ assets measured at fair value, as of December 31: 2017 Asset Class Level 1 Level 2 Total Cash equivalents and short-term investments $ 12 $ 29 $ 41 U.S. equities 102 43 145 Non-U.S. equities 50 100 150 Real estate — 18 18 Government bonds 7 11 18 Corporate bonds 90 37 127 Other assets 3 112 115 Total assets $ 264 $ 350 $ 614 2016 Asset Class Level 1 Level 2 Total Cash equivalents and short-term investments $ 12 $ 15 $ 27 U.S. equities 87 34 121 Non-U.S. equities 40 70 110 Real estate — 15 15 Government bonds 7 70 77 Corporate bonds 82 40 122 Other assets 2 49 51 Total assets $ 230 $ 293 $ 523 The Company estimates that future benefit payments from plan assets will be $26 million , $28 million , $28 million , $29 million , $31 million and $170 million for 2018 , 2019, 2020, 2021, 2022 and 2023 to 2027, respectively. Multiemployer Plans The Company contributes to a number of multiemployer plans under the terms of collective-bargaining agreements that cover a portion of its employees. The risks of participating in these multiemployer plans are different from single-employer plans in the following aspects: (i) assets contributed to the multiemployer plan by one employer may be used to provide benefits to employees of other participating employers; (ii) if a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers; (iii) if the Company elects to stop participating in a multiemployer plan, it may be required to contribute to such plan an amount based on the under-funded status of the plan; and (iv) the Company has no involvement in the management of the multiemployer plans’ investments. For the years ended December 31, 2017 , 2016 and 2015 , the Company contributed a total of $9 million in each of the periods to multiemployer plans. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments | 18. Financial Instruments Risk Management Currency Risk . The Company uses currency exchange contracts to manage its exposure to changes in currency exchange rates associated with its non-U.S.-dollar denominated receivables and forecasted royalties, forecasted earnings of non-U.S. subsidiaries and forecasted non-U.S.-dollar denominated acquisitions. The Company primarily hedges a portion of its current-year currency exposure to the Australian, Canadian and New Zealand dollars, the euro and the British pound sterling. The majority of forward contracts do not qualify for hedge accounting treatment. The fluctuations in the value of these forward contracts do, however, largely offset the impact of changes in the value of the underlying risk they economically hedge. Forward contracts used to hedge forecasted third-party receipts and disbursements up to 12 months are designated and do qualify as cash flow hedges. The Company has designated its euro-denominated notes as a hedge of its investment in euro-denominated foreign operations. The amount of gains or losses reclassified from other comprehensive income (loss) to earnings resulting from ineffectiveness or from excluding a component of the hedges’ gain or loss from the effectiveness calculation for cash flow and net investment hedges during 2017 , 2016 and 2015 was not material, nor is the amount of gains or losses the Company expects to reclassify from accumulated other comprehensive income (loss) to earnings over the next 12 months. Interest Rate Risk . The Company uses various hedging strategies including interest rate swaps and interest rate caps to create an appropriate mix of fixed and floating rate assets and liabilities. The after-tax amount of gains or losses reclassified from accumulated other comprehensive income (loss) to earnings resulting from ineffectiveness for 2017 , 2016 and 2015 was not material to the Company’s results of operations, nor is the amount of gains or losses the Company expects to reclassify from accumulated other comprehensive income (loss) to earnings over the next 12 months. Commodity Risk. The Company periodically enters into derivative commodity contracts to manage its exposure to changes in the price of gasoline. These instruments were designated as freestanding derivatives and the changes in fair value are recorded in the Company’s consolidated results of operations. Credit Risk and Exposure . The Company is exposed to counterparty credit risks in the event of nonperformance by counterparties to various agreements and sales transactions. The Company manages such risk by evaluating the financial position and creditworthiness of such counterparties and by requiring collateral in certain instances in which financing is provided. The Company mitigates counterparty credit risk associated with its derivative contracts by monitoring the amount for which it is at risk with each counterparty, periodically evaluating counterparty creditworthiness and financial position, and where possible, dispersing its risk among multiple counterparties. There were no significant concentrations of credit risk with any individual counterparty or groups of counterparties at December 31, 2017 or 2016 , other than (i) risks related to the Company’s repurchase and guaranteed depreciation agreements with domestic and foreign car manufacturers, and primarily with respect to receivables for program cars that were disposed but for which the Company has not yet received payment from the manufacturers (see Note 2-Summary of Significant Accounting Policies), (ii) receivables from Realogy and Wyndham related to certain contingent, income tax and other corporate liabilities assumed by Realogy and Wyndham in connection with their disposition and (iii) risks related to leases which have been assumed by Realogy but of which the Company is a guarantor. Concentrations of credit risk associated with trade receivables are considered minimal due to the Company’s diverse customer base. The Company does not normally require collateral or other security to support credit sales. Fair Value Derivative instruments and hedging activities As described above, derivative assets and liabilities consist principally of currency exchange contracts, interest rate swaps, interest rate caps and commodity contracts. The Company held derivative instruments with absolute notional values as follows: As of December 31, 2017 2016 Interest rate caps (a) $ 10,968 $ 9,736 Interest rate swaps 1,000 1,950 Foreign exchange contracts 934 692 __________ (a) Represents $8.0 billion of interest rate caps sold, partially offset by approximately $3.0 billion of interest rate caps purchased at December 31, 2017 and $7.4 billion of interest rate caps sold, partially offset by approximately $2.3 billion of interest rate caps purchased at December 31, 2016 . These amounts exclude $5.0 billion and $5.1 billion of interest rate caps purchased by the Company’s Avis Budget Rental Car Funding subsidiary at December 31, 2017 and 2016 , respectively. Fair values (Level 2) of derivative instruments are as follows: As of December 31, 2017 As of December 31, 2016 Fair Value, Asset Derivatives Fair Value, Liability Derivatives Fair Value, Asset Derivatives Fair Value, Liability Derivatives Derivatives designated as hedging instruments Interest rate swaps (a) $ 8 $ — $ 7 $ 4 Derivatives not designated as hedging instruments Interest rate caps (b) — 1 1 7 Foreign exchange contracts (c) 3 7 7 2 Total $ 11 $ 8 $ 15 $ 13 __________ Amounts in this table exclude derivatives issued by Avis Budget Rental Car Funding, as it is not consolidated by the Company; however, certain amounts related to the derivatives held by Avis Budget Rental Car Funding are included within accumulated other comprehensive income (loss), as discussed in Note 15-Stockholders’ Equity. (a) Included in other non-current assets or other non-current liabilities. (b) Included in assets under vehicle programs or liabilities under vehicle programs. (c) Included in other current assets or other current liabilities. The effects of derivatives recognized in the Company’s Consolidated Financial Statements are as follows: Year Ended December 31, 2017 2016 2015 Financial instruments designated as hedging instruments (a) Interest rate swaps $ 3 $ 4 $ (1 ) Euro-denominated notes (50 ) 14 34 Financial instruments not designated as hedging instruments (b) Foreign exchange contracts (c) (42 ) 42 48 Interest rate caps (d) (1 ) (2 ) (2 ) Commodity contracts (e) (1 ) — — Total $ (91 ) $ 58 $ 79 __________ (a) Recognized, net of tax, as a component of accumulated other comprehensive income (loss) within stockholders’ equity. (b) Gains (losses) related to derivative instruments are expected to be largely offset by (losses) gains on the underlying exposures being hedged. (c) For the year ended December 31, 2017 , included a $23 million loss included in interest expense and a $19 million loss included in operating expenses. For the year ended December 31, 2016 , included a $68 million gain in interest expense and a $26 million loss included in operating expenses. For the year ended December 31, 2015 , included a $32 million gain in interest expense and a $16 million gain included in operating expenses. (d) For the years ended December 31, 2017 , 2016 and 2015, amounts are included in vehicle interest, net. (e) Included in operating expenses. Debt Instruments The carrying amounts and estimated fair values (Level 2) of debt instruments are as follows: As of December 31, 2017 As of December 31, 2016 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Corporate debt Short-term debt and current portion of long-term debt $ 26 $ 26 $ 279 $ 280 Long-term debt 3,573 3,677 3,244 3,265 Debt under vehicle programs Vehicle-backed debt due to Avis Budget Rental Car Funding $ 6,480 $ 6,537 $ 6,695 $ 6,722 Vehicle-backed debt 2,740 2,745 2,176 2,187 Interest rate swaps and interest rate caps (a) 1 1 7 7 ___________ (a) Derivatives in liability position. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | 19. Segment Information The Company’s chief operating decision maker assesses performance and allocates resources based upon the separate financial information from the Company’s operating segments. In identifying its reportable segments, the Company considered the nature of services provided, the geographical areas in which the segments operated and other relevant factors. The Company aggregates certain of its operating segments into its reportable segments. Management evaluates the operating results of each of its reportable segments based upon revenue and “Adjusted EBITDA,” which the Company defines as income from continuing operations before non-vehicle related depreciation and amortization, any impairment charge, restructuring and other related charges, early extinguishment of debt costs, non-vehicle related interest, transaction-related costs, net charges for an unprecedented personal-injury legal matter and income taxes. Net charges for the legal matter are recorded within operating expenses in the Company’s Consolidated Statements of Operations. The Company has revised its definition of Adjusted EBITDA to exclude costs associated with the separation of certain officers of the Company and its limited voluntary opportunity plans, which offered certain employees the limited opportunity to elect resignation from employment for enhanced severance benefits. Costs associated with the separation of certain officers and the limited voluntary opportunity plans are recorded as part of restructuring and other related charges in the Company’s Consolidated Statements of Operations. The Company did not revise prior years’ Adjusted EBITDA amounts because there were no costs similar in nature to these items. The Company’s presentation of Adjusted EBITDA may not be comparable to similarly-titled measures used by other companies. Year Ended December 31, 2017 Americas International Corporate and Other (a) Total Net revenues $ 6,100 $ 2,748 $ — $ 8,848 Vehicle depreciation and lease charges, net 1,671 550 — 2,221 Vehicle interest, net 226 60 — 286 Adjusted EBITDA 486 305 (56 ) 735 Non-vehicle depreciation and amortization 168 91 — 259 Assets exclusive of assets under vehicle programs 3,388 2,353 79 5,820 Assets under vehicle programs 9,017 2,862 — 11,879 Capital expenditures (excluding vehicles) 122 62 13 197 __________ (a) Primarily represents unallocated corporate expenses and receivables from our former subsidiaries . Year Ended December 31, 2016 Americas International Corporate and Other (a) Total Net revenues $ 6,121 $ 2,538 $ — $ 8,659 Vehicle depreciation and lease charges, net 1,559 488 — 2,047 Vehicle interest, net 226 58 — 284 Adjusted EBITDA 633 273 (68 ) 838 Non-vehicle depreciation and amortization 165 88 — 253 Assets exclusive of assets under vehicle programs 4,017 1,990 58 6,065 Assets under vehicle programs 9,210 2,368 — 11,578 Capital expenditures (excluding vehicles) 121 62 7 190 __________ (a) Primarily represents unallocated corporate expenses and receivables from our former subsidiaries. Year Ended December 31, 2015 Americas International Corporate and Other (a) Total Net revenues $ 6,069 $ 2,433 $ — $ 8,502 Vehicle depreciation and lease charges, net 1,478 455 — 1,933 Vehicle interest, net 234 55 — 289 Adjusted EBITDA 682 277 (56 ) 903 Non-vehicle depreciation and amortization 143 75 — 218 Assets exclusive of assets under vehicle programs 3,940 1,901 77 5,918 Assets under vehicle programs 9,440 2,276 — 11,716 Capital expenditures (excluding vehicles) 131 68 — 199 __________ (a) Primarily represents unallocated corporate expenses and receivables from our former subsidiaries. Provided below is a reconciliation of Adjusted EBITDA to income before income taxes. For the Year Ended December 31, 2017 2016 2015 Adjusted EBITDA $ 735 $ 838 $ 903 Less: Non-vehicle related depreciation and amortization (a) 259 253 218 Interest expense related to corporate debt, net 188 203 194 Early extinguishment of corporate debt 3 27 23 Restructuring and other related charges 63 29 18 Transaction-related costs, net 23 21 68 Impairment 2 — — Charges for legal matter, net (b) (14 ) 26 — Income before income taxes $ 211 $ 279 $ 382 __________ (a) Inc ludes amortization of intangible assets recognized in purchase accounting of $58 million in 2017 , $59 million in 2016 and $55 million in 2015 . (b) Reported within operating expenses in our Consolidated Statements of Operations . The geographic segment information provided below is classified based on the geographic location of the Company’s subsidiaries. United States All Other Countries Total 2017 Net revenues $ 5,629 $ 3,219 $ 8,848 Assets exclusive of assets under vehicle programs 3,069 2,751 5,820 Assets under vehicle programs 8,192 3,687 11,879 Net long-lived assets 1,451 1,176 2,627 2016 Net revenues $ 5,674 $ 2,985 $ 8,659 Assets exclusive of assets under vehicle programs 3,699 2,366 6,065 Assets under vehicle programs 8,552 3,026 11,578 Net long-lived assets 1,489 1,073 2,562 2015 Net revenues $ 5,635 $ 2,867 $ 8,502 Assets exclusive of assets under vehicle programs 3,677 2,241 5,918 Assets under vehicle programs 8,786 2,930 11,716 Net long-lived assets 1,502 1,069 2,571 |
Guarantor and Non-Guarantor Con
Guarantor and Non-Guarantor Consolidating Financial Statements | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Financial Information of Parent Company Only Disclosure [Text Block] | Guarantor and Non-Guarantor Consolidating Financial Statements The following consolidating financial information presents Consolidating Condensed Statements of Operations for the years ended December 31, 2017 , 2016 and 2015 , Consolidating Condensed Balance Sheets as of December 31, 2017 and December 31, 2016 and Consolidating Condensed Statements of Cash Flows for the years ended December 31, 2017 , 2016 and 2015 for: (i) Avis Budget Group, Inc. (the “Parent”); (ii) ABCR and Avis Budget Finance, Inc. (the “Subsidiary Issuers”); (iii) the guarantor subsidiaries; (iv) the non-guarantor subsidiaries; (v) elimination entries necessary to consolidate the Parent with the Subsidiary Issuers, the guarantor and non-guarantor subsidiaries; and (vi) the Company on a consolidated basis. The Subsidiary Issuers and the guarantor and non-guarantor subsidiaries are 100% owned by the Parent, either directly or indirectly. All guarantees are full and unconditional and joint and several. This financial information is being presented in relation to the Company’s guarantee of the payment of principal, premium (if any) and interest on the notes issued by the Subsidiary Issuers. See Note 12-Long-term Corporate Debt and Borrowing Arrangements for additional description of these guaranteed notes. The Senior Notes have separate investors than the equity investors of the Company and are guaranteed by the Parent and certain subsidiaries. Investments in subsidiaries are accounted for using the equity method of accounting for purposes of the consolidating presentation. The principal elimination entries relate to investments in subsidiaries and intercompany balances and transactions. For purposes of the accompanying Consolidating Condensed Statements of Operations, certain expenses incurred by the Subsidiary Issuers are allocated to the guarantor and non-guarantor subsidiaries. The following tables provide the impact of adoption of ASU 2016-18 on the Company’s Consolidating Condensed Statements of Cash Flows for the years ended December 31, 2016 and 2015. Year Ended December 31, 2016 As Previously Reported Non-Guarantor Effect of Change As Adjusted Non-Guarantor As Previously Reported Total Effect of Change As Adjusted Total Decrease in program cash $ 31 $ (31 ) $ — $ 31 $ (31 ) $ — Other, net 4 (2 ) 2 3 (2 ) 1 Net cash used in investing activities (2,368 ) (33 ) (2,401 ) (2,149 ) (33 ) (2,182 ) Effect of changes in exchange rates on cash and cash equivalents, program and restricted cash (4 ) (2 ) (6 ) (4 ) (2 ) (6 ) Net increase in cash and cash equivalents, program and restricted cash 97 (35 ) 62 38 (35 ) 3 Cash and cash equivalents, program and restricted cash, beginning of period 378 265 643 452 265 717 Cash and cash equivalents, program and restricted cash, end of period $ 475 $ 230 $ 705 $ 490 $ 230 $ 720 Year Ended December 31, 2015 As Previously Reported Non-Guarantor Effect of Change As Adjusted Non-Guarantor As Previously Reported Total Effect of Change As Adjusted Total Increase in program cash $ (148 ) $ 148 $ — $ (148 ) $ 148 $ — Other, net 8 (3 ) 5 6 (3 ) 3 Net cash used in investing activities (2,711 ) 145 (2,566 ) (2,830 ) 145 (2,685 ) Effect of changes in exchange rates on cash and cash equivalents, program and restricted cash (41 ) (9 ) (50 ) (41 ) (9 ) (50 ) Net increase (decrease) in cash and cash equivalents, program and restricted cash (34 ) 136 102 (172 ) 136 (36 ) Cash and cash equivalents, program and restricted cash, beginning of period 412 129 541 624 129 753 Cash and cash equivalents, program and restricted cash, end of period $ 378 $ 265 $ 643 $ 452 $ 265 $ 717 The following table provides a reconciliation of the cash and cash equivalents, program and restricted cash reported within the Consolidating Condensed Balance Sheets to the amounts shown in the Consolidating Condensed Statements of Cash Flows. As of December 31, 2017 2016 Non-Guarantor Total Non-Guarantor Total Cash and cash equivalents $ 593 $ 611 $ 475 $ 490 Program cash 283 283 225 225 Restricted cash (a) 7 7 5 5 Total cash and cash equivalents, program and restricted cash $ 883 $ 901 $ 705 $ 720 _________ (a) Included within other current assets. |
Guarantor and Non-Guarantor Condensed Cash Flow Statements [Text Block] | For the Year Ended December 31, 2017 Parent Subsidiary Issuers Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Net cash provided by (used in) operating activities $ 110 $ (89 ) $ 97 $ 2,697 $ (167 ) $ 2,648 Investing activities Property and equipment additions — (49 ) (81 ) (67 ) — (197 ) Proceeds received on asset sales — 1 — 7 — 8 Net assets acquired (net of cash acquired) — (1 ) (5 ) (15 ) — (21 ) Intercompany loan receipts (advances) — — — (264 ) 264 — Other, net 100 110 110 5 (320 ) 5 Net cash provided by (used in) investing activities exclusive of vehicle programs 100 61 24 (334 ) (56 ) (205 ) Vehicle programs: Investment in vehicles — (1 ) — (11,537 ) — (11,538 ) Proceeds received on disposition of vehicles — 46 — 9,554 — 9,600 Investment in debt securities of Avis Budget Rental Car Funding (AESOP) LLC — related party — — — (61 ) — (61 ) — 45 — (2,044 ) — (1,999 ) Net cash provided by (used in) investing activities 100 106 24 (2,378 ) (56 ) (2,204 ) Financing activities Proceeds from long-term borrowings — 325 — 264 — 589 Payments on long-term borrowings — (406 ) (2 ) (194 ) — (602 ) Net change in short-term borrowings — — — (4 ) — (4 ) Debt financing fees — (5 ) — (4 ) — (9 ) Repurchases of common stock (210 ) — — — — (210 ) Intercompany loan borrowings (payments) — 264 — — (264 ) — Other, net 1 (192 ) (110 ) (185 ) 487 1 Net cash provided by (used in) financing activities exclusive of vehicle programs (209 ) (14 ) (112 ) (123 ) 223 (235 ) Vehicle programs: Proceeds from borrowings — — — 17,212 — 17,212 Payments on borrowings — (1 ) (9 ) (17,259 ) — (17,269 ) Debt financing fees — — — (16 ) — (16 ) — (1 ) (9 ) (63 ) — (73 ) Net cash provided by (used in) financing activities (209 ) (15 ) (121 ) (186 ) 223 (308 ) Effect of changes in exchange rates on cash and cash equivalents, program and restricted cash — — — 45 — 45 Net increase in cash and cash equivalents, program and restricted cash 1 2 — 178 — 181 Cash and cash equivalents, program and restricted cash, beginning of period 3 12 — 705 — 720 Cash and cash equivalents, program and restricted cash, end of period $ 4 $ 14 $ — $ 883 $ — $ 901 For the Year Ended December 31, 2016 Parent Subsidiary Issuers Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Net cash provided by (used in) operating activities $ 279 $ (10 ) $ 80 $ 2,633 $ (342 ) $ 2,640 Investing activities Property and equipment additions — (32 ) (89 ) (69 ) — (190 ) Proceeds received on asset sales — 7 4 8 — 19 Net assets acquired (net of cash acquired) — — (4 ) (51 ) — (55 ) Intercompany loan receipts (advances) — — 28 (316 ) 288 — Other, net 118 (1 ) — 2 (118 ) 1 Net cash provided by (used in) investing activities exclusive of vehicle programs 118 (26 ) (61 ) (426 ) 170 (225 ) Vehicle programs: Investment in vehicles — (9 ) (4 ) (12,448 ) — (12,461 ) Proceeds received on disposition of vehicles — 31 — 10,473 — 10,504 — 22 (4 ) (1,975 ) — (1,957 ) Net cash provided by (used in) investing activities 118 (4 ) (65 ) (2,401 ) 170 (2,182 ) Financing activities Proceeds from long-term borrowings — 557 — 337 — 894 Payments on long-term borrowings — (525 ) (5 ) (317 ) — (847 ) Net change in short-term borrowings — — — 4 — 4 Debt financing fees — (15 ) — (5 ) — (20 ) Repurchases of common stock (398 ) — — — — (398 ) Intercompany loan borrowings (payments) — 316 — (28 ) (288 ) — Other, net — (385 ) — (75 ) 460 — Net cash provided by (used in) financing activities exclusive of vehicle programs (398 ) (52 ) (5 ) (84 ) 172 (367 ) Vehicle programs: Proceeds from borrowings — 8 — 15,761 — 15,769 Payments on borrowings — — (9 ) (15,817 ) — (15,826 ) Debt financing fees — — (1 ) (24 ) — (25 ) — 8 (10 ) (80 ) — (82 ) Net cash provided by (used in) financing activities (398 ) (44 ) (15 ) (164 ) 172 (449 ) Effect of changes in exchange rates on cash and cash equivalents, program and restricted cash — — — (6 ) — (6 ) Net increase (decrease) in cash and cash equivalents, program and restricted cash (1 ) (58 ) — 62 — 3 Cash and cash equivalents, program and restricted cash, beginning of period 4 70 — 643 — 717 Cash and cash equivalents, program and restricted cash, end of period $ 3 $ 12 $ — $ 705 $ — $ 720 For the Year Ended December 31, 2015 Parent Subsidiary Issuers Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Net cash provided by (used in) operating activities $ 103 $ 249 $ 146 $ 2,204 $ (75 ) $ 2,627 Investing activities Property and equipment additions — (26 ) (98 ) (75 ) — (199 ) Proceeds received on asset sales — 7 1 7 — 15 Net assets acquired (net of cash acquired) — (8 ) (9 ) (239 ) — (256 ) Intercompany loan receipts (advances) — (30 ) (96 ) — 126 — Other, net 334 (127 ) 1 5 (210 ) 3 Net cash provided by (used in) investing activities exclusive of vehicle programs 334 (184 ) (201 ) (302 ) (84 ) (437 ) Vehicle programs: Investment in vehicles — (1 ) (2 ) (11,925 ) — (11,928 ) Proceeds received on disposition of vehicles — 19 — 9,661 — 9,680 — 18 (2 ) (2,264 ) — (2,248 ) Net cash provided by (used in) investing activities 334 (166 ) (203 ) (2,566 ) (84 ) (2,685 ) Financing activities Proceeds from long-term borrowings — 375 — 2 — 377 Payments on long-term borrowings — (256 ) (4 ) (41 ) — (301 ) Net change in short-term borrowings — — — (22 ) — (22 ) Debt financing fees — (7 ) — — — (7 ) Repurchases of common stock (436 ) — — — — (436 ) Intercompany loan borrowings (payments) — — — 126 (126 ) — Other, net 1 (335 ) 70 (28 ) 285 (7 ) Net cash provided by (used in) financing activities exclusive of vehicle programs (435 ) (223 ) 66 37 159 (396 ) Vehicle programs: Proceeds from borrowings — — — 14,138 — 14,138 Payments on borrowings — — (9 ) (13,639 ) — (13,648 ) Debt financing fees — — — (22 ) — (22 ) — — (9 ) 477 — 468 Net cash provided by (used in) financing activities (435 ) (223 ) 57 514 159 72 Effect of changes in exchange rates on cash and cash equivalents, program and restricted cash — — — (50 ) — (50 ) Net increase (decrease) in cash and cash equivalents, program and restricted cash 2 (140 ) — 102 — (36 ) Cash and cash equivalents, program and restricted cash, beginning of period 2 210 — 541 — 753 Cash and cash equivalents, program and restricted cash, end of period $ 4 $ 70 $ — $ 643 $ — $ 717 |
Guarantor and Non-Guarantor Condensed Balance Sheet [Text Block] | Consolidating Condensed Balance Sheets As of December 31, 2017 Parent Subsidiary Issuers Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Assets Current assets: Cash and cash equivalents $ 4 $ 14 $ — $ 593 $ — $ 611 Receivables, net — — 255 667 — 922 Other current assets 4 89 101 339 — 533 Total current assets 8 103 356 1,599 — 2,066 Property and equipment, net — 167 321 216 — 704 Deferred income taxes 14 704 154 59 — 931 Goodwill — — 471 602 — 1,073 Other intangibles, net — 27 480 343 — 850 Other non-current assets 46 29 16 105 — 196 Intercompany receivables 187 382 1,506 824 (2,899 ) — Investment in subsidiaries 381 4,681 3,938 — (9,000 ) — Total assets exclusive of assets under vehicle programs 636 6,093 7,242 3,748 (11,899 ) 5,820 Assets under vehicle programs: Program cash — — — 283 — 283 Vehicles, net — 34 61 10,531 — 10,626 Receivables from vehicle manufacturers and other — 1 — 546 — 547 Investment in Avis Budget Rental Car Funding (AESOP) LLC-related party — — — 423 — 423 — 35 61 11,783 — 11,879 Total assets $ 636 $ 6,128 $ 7,303 $ 15,531 $ (11,899 ) $ 17,699 Liabilities and stockholders’ equity Current liabilities: Accounts payable and other current liabilities $ 23 $ 207 $ 552 $ 837 $ — $ 1,619 Short-term debt and current portion of long-term debt — 17 3 6 — 26 Total current liabilities 23 224 555 843 — 1,645 Long-term debt — 2,910 3 660 — 3,573 Other non-current liabilities 40 83 216 378 — 717 Intercompany payables — 2,515 382 2 (2,899 ) — Total liabilities exclusive of liabilities under vehicle programs 63 5,732 1,156 1,883 (2,899 ) 5,935 Liabilities under vehicle programs: Debt — 15 57 2,669 — 2,741 Due to Avis Budget Rental Car Funding (AESOP) LLC-related party — — — 6,480 — 6,480 Deferred income taxes — — 1,407 187 — 1,594 Other — — 2 374 — 376 — 15 1,466 9,710 — 11,191 Total stockholders’ equity 573 381 4,681 3,938 (9,000 ) 573 Total liabilities and stockholders’ equity $ 636 $ 6,128 $ 7,303 $ 15,531 $ (11,899 ) $ 17,699 As of December 31, 2016 Parent Subsidiary Issuers Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Assets Current assets: Cash and cash equivalents $ 3 $ 12 $ — $ 475 $ — $ 490 Receivables, net — — 231 577 — 808 Other current assets 2 101 90 326 — 519 Total current assets 5 113 321 1,378 — 1,817 Property and equipment, net — 148 341 196 — 685 Deferred income taxes 20 1,219 268 — (14 ) 1,493 Goodwill — — 489 518 — 1,007 Other intangibles, net — 28 502 340 — 870 Other non-current assets 75 24 16 78 — 193 Intercompany receivables 171 359 1,466 670 (2,666 ) — Investment in subsidiaries 42 3,717 3,698 — (7,457 ) — Total assets exclusive of assets under vehicle programs 313 5,608 7,101 3,180 (10,137 ) 6,065 Assets under vehicle programs: Program cash — — — 225 — 225 Vehicles, net — 24 70 10,370 — 10,464 Receivables from vehicle manufacturers and other — 1 — 526 — 527 Investment in Avis Budget Rental Car Funding (AESOP) LLC-related party — — — 362 — 362 — 25 70 11,483 — 11,578 Total assets $ 313 $ 5,633 $ 7,171 $ 14,663 $ (10,137 ) $ 17,643 Liabilities and stockholders’ equity Current liabilities: Accounts payable and other current liabilities $ 23 $ 189 $ 512 $ 764 $ — $ 1,488 Short-term debt and current portion of long-term debt — 264 3 12 — 279 Total current liabilities 23 453 515 776 — 1,767 Long-term debt — 2,730 3 511 — 3,244 Other non-current liabilities 69 88 253 368 (14 ) 764 Intercompany payables — 2,306 359 1 (2,666 ) — Total liabilities exclusive of liabilities under vehicle programs 92 5,577 1,130 1,656 (2,680 ) 5,775 Liabilities under vehicle programs: Debt — 14 66 2,103 — 2,183 Due to Avis Budget Rental Car Funding (AESOP) LLC-related party — — — 6,695 — 6,695 Deferred income taxes — — 2,258 171 — 2,429 Other — — — 340 — 340 — 14 2,324 9,309 — 11,647 Total stockholders’ equity 221 42 3,717 3,698 (7,457 ) 221 Total liabilities and stockholders’ equity $ 313 $ 5,633 $ 7,171 $ 14,663 $ (10,137 ) $ 17,643 |
Guarantor and Non-guarantor Consolidating Financial Statements | Consolidating Condensed Statements of Operations For the Year Ended December 31, 2017 Parent Subsidiary Issuers Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Total Revenues Vehicle rental $ — $ — $ 4,108 $ 2,111 $ — $ 6,219 Other — — 1,204 3,820 (2,395 ) 2,629 Net revenues — — 5,312 5,931 (2,395 ) 8,848 Expenses Operating 3 20 2,598 1,851 — 4,472 Vehicle depreciation and lease charges, net — — 2,226 2,183 (2,188 ) 2,221 Selling, general and administrative 39 8 619 454 — 1,120 Vehicle interest, net — — 199 294 (207 ) 286 Non-vehicle related depreciation and amortization — 1 160 98 — 259 Interest expense related to corporate debt, net: Interest expense — 157 1 30 — 188 Intercompany interest expense (income) (12 ) 95 23 (106 ) — — Early extinguishment of debt — 4 — (1 ) — 3 Restructuring and other related charges — 7 44 12 — 63 Transaction-related costs, net — 1 3 19 — 23 Transaction-related costs, net Impairment — — 2 — — 2 Total expenses 30 293 5,875 4,834 (2,395 ) 8,637 Income (loss) before income taxes and equity in earnings of subsidiaries (30 ) (293 ) (563 ) 1,097 — 211 Provision for (benefit from) income taxes (5 ) 267 (527 ) 115 — (150 ) Equity in earnings of subsidiaries 386 946 982 — (2,314 ) — Net income $ 361 $ 386 $ 946 $ 982 $ (2,314 ) $ 361 Comprehensive income $ 491 $ 515 $ 1,073 $ 1,103 $ (2,691 ) $ 491 For the Year Ended December 31, 2016 Parent Subsidiary Issuers Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Revenues Vehicle rental $ — $ — $ 4,134 $ 1,947 $ — $ 6,081 Other — — 1,209 3,563 (2,194 ) 2,578 Net revenues — — 5,343 5,510 (2,194 ) 8,659 Expenses Operating 4 18 2,622 1,738 — 4,382 Vehicle depreciation and lease charges, net — — 1,993 2,045 (1,991 ) 2,047 Selling, general and administrative 38 18 631 447 — 1,134 Vehicle interest, net — — 198 289 (203 ) 284 Non-vehicle related depreciation and amortization — 2 155 96 — 253 Interest expense related to corporate debt, net: Interest expense — 141 3 59 — 203 Intercompany interest expense (income) (13 ) (7 ) 23 (3 ) — — Early extinguishment of debt — 10 — 17 — 27 Restructuring and other related charges — — 9 20 — 29 Transaction-related costs, net — 2 1 18 — 21 Total expenses 29 184 5,635 4,726 (2,194 ) 8,380 Income (loss) before income taxes and equity in earnings of subsidiaries (29 ) (184 ) (292 ) 784 — 279 Provision for (benefit from) income taxes (11 ) (70 ) 123 74 — 116 Equity in earnings of subsidiaries 181 295 710 — (1,186 ) — Net income $ 163 $ 181 $ 295 $ 710 $ (1,186 ) $ 163 Comprehensive income $ 156 $ 173 $ 283 $ 712 $ (1,168 ) $ 156 For the Year Ended December 31, 2015 Parent Subsidiary Issuers Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Revenues Vehicle rental $ — $ — $ 4,124 $ 1,902 $ — $ 6,026 Other — — 1,181 3,335 (2,040 ) 2,476 Net revenues — — 5,305 5,237 (2,040 ) 8,502 Expenses Operating 2 17 2,587 1,678 — 4,284 Vehicle depreciation and lease charges, net — 1 1,819 1,936 (1,823 ) 1,933 Selling, general and administrative 32 15 619 427 — 1,093 Vehicle interest, net — — 204 302 (217 ) 289 Non-vehicle related depreciation and amortization — 1 133 84 — 218 Interest expense related to corporate debt, net: Interest expense — 159 (5 ) 40 — 194 Intercompany interest expense (income) (12 ) (11 ) 16 7 — — Early extinguishment of debt — 23 — — — 23 Transaction-related costs, net — 22 6 40 — 68 Restructuring and other related charges — — 6 12 — 18 Total expenses 22 227 5,385 4,526 (2,040 ) 8,120 Income (loss) before income taxes and equity in earnings of subsidiaries (22 ) (227 ) (80 ) 711 — 382 Provision for (benefit from) income taxes (9 ) (178 ) 170 86 — 69 Equity in earnings of subsidiaries 326 375 625 — (1,326 ) — Net income $ 313 $ 326 $ 375 $ 625 $ (1,326 ) $ 313 Comprehensive income $ 188 $ 203 $ 253 $ 504 $ (960 ) $ 188 |
Selected Quarterly Financial Da
Selected Quarterly Financial Data | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data | 21. Selected Quarterly Financial Data—(unaudited) Provided below are selected unaudited quarterly financial data for 2017 and 2016 . The earnings per share information is calculated independently for each quarter based on the weighted average number of common stock and common stock equivalents outstanding, which may fluctuate, based on quarterly income levels and market prices. Therefore and due to the seasonality of the Company’s earnings, the sum of the quarters’ per share information may not equal the annual amount presented on the Consolidated Statements of Operations. 2017 First Second Third Fourth (a) Net revenues $ 1,839 $ 2,238 $ 2,752 $ 2,019 Net income (loss) (107 ) 3 245 220 Per share information: Basic Net income (loss) $ (1.25 ) $ 0.04 $ 2.96 $ 2.70 Weighted average shares 85.7 84.0 82.6 81.3 Diluted Net income (loss) $ (1.25 ) $ 0.04 $ 2.91 $ 2.65 Weighted average shares 85.7 85.2 84.0 82.7 2016 First Second Third Fourth Net revenues $ 1,881 $ 2,243 $ 2,656 $ 1,879 Net income (loss) (51 ) 36 209 (31 ) Per share information: Basic Net income (loss) $ (0.53 ) $ 0.39 $ 2.32 $ (0.35 ) Weighted average shares 96.3 93.9 90.4 87.4 Diluted Net income (loss) $ (0.53 ) $ 0.38 $ 2.28 $ (0.35 ) Weighted average shares 96.3 95.1 91.8 87.4 __________ (a) Net income for fourth quarter 2017 includes provisional amounts for the Tax Act of (i) a tax benefit of $317 million resulting from the remeasurement of net deferred income tax liabilities as a result of the reduced corporate tax rate and (ii) a tax provision of $104 million for the one-time transition tax on the deemed repatriation of cumulative foreign subsidiary earnings. This estimate will be finalized in a subsequent measurement period during 2018. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | 22. Subsequent Events On January 14, 2018, the Company’s Board of Directors authorized the adoption of a short-term stockholder rights plan, which expires on January 13, 2019. Pursuant to the rights plan, the Company declared a dividend of one preferred share purchase right for each outstanding share of common stock, payable to holders of record as of the close of business on January 26, 2018. Each right, which is exercisable only in the event any person or group acquires a voting or economic position of 15% or more of the Company’s outstanding common stock (with certain limited exceptions), would entitle any holder other than the person or group whose ownership position has exceeded the ownership limit to purchase common stock having a value equal to twice the $100 exercise price of the right, or, at the election of the Board of Directors, to exchange each right for one share of common stock (subject to adjustment). In February 2018, the Company amended the terms of its Floating Rate Term Loan due 2022 and its Senior revolving credit facility maturing 2021. The Company extended its Floating Rate Term Loan maturity term to 2025 and its Senior revolving credit facility maturity to 2023. ***** |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2017 | |
Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | Schedule II – Valuation and Qualifying Accounts (in millions) Description Balance at Beginning of Period Expensed Other Adjustments Deductions Balance at End of Period Allowance for Doubtful Accounts: Year Ended December 31, 2017 (a) $ 38 $ 29 $ 3 $ (34 ) $ 36 2016 (a) 34 27 (2 ) (21 ) 38 2015 (a) 34 24 (3 ) (21 ) 34 Tax Valuation Allowance: Year Ended December 31, 2017 (a) $ 357 $ — $ 13 $ (39 ) $ 331 2016 (a) 351 17 3 (14 ) 357 2015 (a)(b) 319 20 12 — 351 __________ (a) Other adjustments relate to currency translation adjustments. (b) Other adjustments relate to the acquisition of Brazil. |
Summary of Significant Accoun32
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Accounting Principles | Accounting Principles The Company’s Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). |
Principles of Consolidation | Principles of Consolidation The Consolidated Financial Statements include the accounts of the Company and all entities in which it has a direct or indirect controlling financial interest and variable interest entities for which the Company has determined it is the primary beneficiary. Intercompany transactions have been eliminated in consolidation. |
Reclassification, Policy [Policy Text Block] | Reclassifications Certain reclassifications have been made to prior years’ Consolidated Financial Statements to conform to the current year presentation. These reclassifications have no impact on reported net income (see “Adoption of New Accounting Pronouncements” below). |
Use of Estimates and Assumptions | Use of Estimates and Assumptions The use of estimates and assumptions as determined by management is required in the preparation of the Consolidated Financial Statements in conformity with GAAP. These estimates are based on management’s evaluation of historical trends and other information available when the Consolidated Financial Statements are prepared and may affect the amounts reported and related disclosures. Actual results could differ from those estimates. |
Revenue Recognition | Revenue Recognition The Company derives revenue primarily through the operation and licensing of its rental systems and by providing vehicle rentals and other services to business and leisure travelers and others. Other revenue includes sales of loss damage waivers and insurance products, fuel and fuel service charges, and rentals of other supplemental items. Revenue is recognized when persuasive evidence of an arrangement exists, the services have been rendered to customers, the pricing is fixed or determinable and collection is reasonably assured. Vehicle rental and rental-related revenue is recognized over the period the vehicle is rented. Licensing revenue principally consists of royalties paid by the Company’s licensees and is recorded within other revenues as the licensees’ revenue is earned (over the rental period of a vehicle). The Company renews license agreements in the normal course of business and occasionally terminates, purchases or sells license agreements. In connection with ongoing fees that the Company receives from its licensees pursuant to license agreements, the Company is required to provide certain services, such as training, marketing and the operation of reservation systems. Revenue and expenses associated with gasoline, vehicle licensing and airport concessions are recorded on a gross basis within revenue and operating expenses. Membership fees related to the Company’s car sharing business are generally nonrefundable, are deferred and recognized ratably over the period of membership and are included in accounts payable and other current liabilities in the Consolidated Balance Sheets. |
Currency Translation | Currency Translation Assets and liabilities of foreign operations are translated at the rate of exchange in effect on the balance sheet date; income and expenses are translated at the prevailing monthly average rate of exchange. The related translation adjustments are reflected in accumulated other comprehensive income (loss) in the stockholders’ equity section of the Consolidated Balance Sheets and in the Consolidated Statements of Comprehensive Income. The accumulated currency translation adjustment as of December 31, 2017 and 2016 was $71 million and $(39) million , respectively. The Company has designated its euro-denominated Notes as a hedge of its investment in euro-denominated foreign operations and, accordingly, records the effective portion of gains or losses on this net investment hedge in accumulated other comprehensive income (loss) as part of currency translation adjustments. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. |
Property and Equipment | Property and Equipment Property and equipment (including leasehold improvements) are stated at cost, net of accumulated depreciation and amortization. Depreciation (non-vehicle related) is computed utilizing the straight-line method over the estimated useful lives of the related assets. Amortization of leasehold improvements is computed utilizing the straight-line method over the estimated benefit period of the related assets, which may not exceed 20 years, or the lease term, if shorter. Useful lives are as follows: Buildings 30 years Furniture, fixtures & equipment 3 to 10 years Capitalized software 3 to 7 years Buses and support vehicles 4 to 15 years The Company capitalizes the costs of software developed for internal use when the preliminary project stage is completed and management (i) commits to funding the project and (ii) believes it is probable that the project will be completed and the software will be used to perform the function intended. The software developed or obtained for internal use is amortized on a straight-line basis commencing when such software is ready for its intended use. The net carrying value of software developed or obtained for internal use was $196 million and $184 million as of December 31, 2017 and 2016 , respectively. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill represents the excess, if any, of the fair value of the consideration transferred by the acquirer and the fair value of any non-controlling interest remaining in the acquiree, if any, over the fair values of the identifiable net assets acquired. The Company does not amortize goodwill, but assesses it for impairment at least annually and whenever events or changes in circumstances indicate that the carrying amounts of their respective reporting units exceed their fair values. The Company performs its annual impairment assessment in the fourth quarter of each year at the reporting unit level. The Company assesses goodwill for such impairment by comparing the carrying value of each reporting unit to its fair value using the present value of expected future cash flows. When appropriate, comparative market multiples and other factors are used to corroborate the discounted cash flow results. Other intangible assets, primarily trademarks, with indefinite lives are not amortized but are evaluated annually for impairment and whenever events or changes in circumstances indicate that the carrying amount of this asset may exceed its fair value. If the carrying value of an other intangible asset exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. Other intangible assets with finite lives are amortized over their estimated useful lives and are evaluated each reporting period to determine if circumstances warrant a revision to these lives. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company is required to assess long-lived assets for impairment whenever circumstances indicate impairment may have occurred. This analysis is performed by comparing the respective carrying values of the assets to the undiscounted expected future cash flows to be generated from such assets. Property and equipment is evaluated separately at the lowest level of identifiable cash flows. If such analysis indicates that the carrying value of these assets is not recoverable, the carrying value of such assets is reduced to fair value. |
Program Cash | Program Cash Program cash primarily represents amounts specifically designated to purchase assets under vehicle programs and/or to repay the related debt. |
Vehicles | Vehicles Vehicles are stated at cost, net of accumulated depreciation. The initial cost of the vehicles is recorded net of incentives and allowances from manufacturers. The Company acquires a portion of its rental vehicles pursuant to repurchase and guaranteed depreciation programs established by automobile manufacturers. Under these programs, the manufacturers agree to repurchase vehicles at a specified price and date, or guarantee the depreciation rate for a specified period of time, subject to certain eligibility criteria (such as car condition and mileage requirements). The Company depreciates vehicles such that the net book value on the date of return to the manufacturers is intended to equal the contractual guaranteed residual values, thereby minimizing any gain or loss. Rental vehicles acquired outside of manufacturer repurchase and guaranteed depreciation programs are depreciated based upon their estimated residual values at their expected dates of disposition, after giving effect to anticipated conditions in the used car market. Any adjustments to depreciation are made prospectively. The estimation of residual values requires the Company to make assumptions regarding the age and mileage of the car at the time of disposal, as well as expected used vehicle auction market conditions. The Company periodically evaluates estimated residual values and adjusts depreciation rates as appropriate. Differences between actual residual values and those estimated result in a gain or loss on disposal and are recorded as part of vehicle depreciation at the time of sale. Vehicle-related interest expense amounts are net of vehicle-related interest income of $8 million , $18 million and $13 million for 2017 , 2016 and 2015 , respectively. |
Advertising Expenses | Advertising Expenses Advertising costs are generally expensed in the period incurred. Advertising expenses, recorded within selling, general and administrative expense on our Consolidated Statements of Operations, include television, print advertising, travel partner rewards programs, Internet and email advertising, social media, wireless mobile device applications and other advertising and promotions and were approximately $111 million , $127 million and $123 million in 2017 , 2016 and 2015 , respectively. |
Taxes | Taxes The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. In the fourth quarter of 2017, the U.S. enacted Public Law 115-97, commonly referred to as the U.S. Tax Reform Act (the “Tax Act”), which included a change in the U.S. federal corporate income tax rate. For more information regarding the accounting for the effects of the Tax Act, see Note 8-Income Taxes. The Company records net deferred tax assets to the extent it believes that it is more likely than not that these assets will be realized. In making such determination, the Company considers all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies and recent results of operations. In the event the Company were to determine that it would be able to realize the deferred income tax assets in the future in excess of their net recorded amount, the Company would adjust the valuation allowance, which would reduce the provision for income taxes. The Company reports revenues net of any tax assessed by a governmental authority that is both imposed on and concurrent with a specific revenue-producing transaction between a seller and a customer. |
Fair Value Measurements | Fair Value Measurements The Company measures fair value of assets and liabilities and discloses the source for such fair value measurements. Financial assets and liabilities are classified as follows: Level 1, which refers to assets and liabilities valued using quoted prices from active markets for identical assets or liabilities; Level 2, which refers to assets and liabilities for which significant other observable market inputs are readily available; and Level 3, which are valued based on significant unobservable inputs. The fair value of the Company’s financial instruments is generally determined by reference to market values resulting from trading on a national securities exchange or in an over-the-counter market (Level 1 inputs). In some cases where quoted market prices are not available, prices are derived by considering the yield of the benchmark security that was issued to initially price the instruments and adjusting this rate by the credit spread that market participants would demand for the instruments as of the measurement date (Level 2 inputs). In situations where long-term borrowings are part of a conduit facility backed by short-term floating rate debt, the Company has determined that its carrying value approximates the fair value of this debt (Level 2 inputs). The carrying amounts of cash and cash equivalents, available-for-sale securities, accounts receivable, program cash and accounts payable and accrued liabilities approximate fair value due to the short-term maturities of these assets and liabilities. The Company’s derivative assets and liabilities consist principally of currency exchange contracts, interest rate swaps, interest rate caps and commodity contracts, and are carried at fair value based on significant observable inputs (Level 2 inputs). Derivatives entered into by the Company are typically executed over-the-counter and are valued using internal valuation techniques, as no quoted market prices exist for such instruments. The valuation technique and inputs depend on the type of derivative and the nature of the underlying exposure. The Company principally uses discounted cash flows to value these instruments. These models take into account a variety of factors including, where applicable, maturity, currency exchange rates, interest rate yield curves of the Company and counterparties, credit curves, counterparty creditworthiness and commodity prices. These factors are applied on a consistent basis and are based upon observable inputs where available. |
Derivative Instruments | Derivative Instruments Derivative instruments are used as part of the Company’s overall strategy to manage exposure to market risks associated with fluctuations in currency exchange rates, interest rates and gasoline costs. As a matter of policy, derivatives are not used for trading or speculative purposes. All derivatives are recorded at fair value either as assets or liabilities. Changes in fair value of derivatives not designated as hedging instruments are recognized currently in earnings within the same line item as the hedged item. The effective portion of changes in fair value of a derivative that is designated as either a cash flow or net investment hedge is recorded as a component of accumulated other comprehensive income (loss). The ineffective portion is recognized in earnings within the same line item as the hedged item, including vehicle interest, net or interest related to corporate debt, net. Amounts included in accumulated other comprehensive income (loss) are reclassified into earnings in the same period during which the hedged item affects earnings. Amounts related to our derivative instruments are recognized in the Consolidated Statements of Cash Flows consistent with the nature of the hedged item (principally operating activities). |
Investments | Investments Joint venture investments are typically accounted for under the equity method of accounting. Under this method, the Company records its proportional share of the joint venture’s net income or loss within operating expenses in the Consolidated Statements of Operations. The Company assesses equity method investments for impairment whenever events or changes in circumstances indicate that the carrying amounts of such investments may not be recoverable. Any difference between the carrying value of the equity method investment and its estimated fair value is recognized as an impairment charge if the loss in value is deemed other than temporary. As of December 31, 2017 and 2016 , the Company had investments in several joint ventures with a carrying value of $32 million and $36 million , respectively, recorded within other non-current assets on the Consolidated Balance Sheets. Aggregate realized gains and losses on equity investments and dividend income are recorded within operating expenses on the Consolidated Statements of Operations. During 2017 , 2016 and 2015, the amounts realized from the sale of equity investments and dividend income were not material. |
Self-Insurance Reserves | Self-Insurance Reserves The Consolidated Balance Sheets include $422 million and $437 million of liabilities associated with retained risks of liability to third parties as of December 31, 2017 and 2016 , respectively. Such liabilities relate primarily to public liability and third-party property damage claims, as well as claims arising from the sale of ancillary insurance products including but not limited to supplemental liability, personal effects protection and personal accident insurance. These obligations represent an estimate for both reported claims not yet paid and claims incurred but not yet reported. The estimated reserve requirements for such claims are recorded on an undiscounted basis utilizing actuarial methodologies and various assumptions which include, but are not limited to, the Company’s historical loss experience and projected loss development factors. The required liability is also subject to adjustment in the future based upon changes in claims experience, including changes in the number of incidents for which the Company is ultimately liable and changes in the cost per incident. These amounts are included within accounts payable and other current liabilities and other non-current liabilities. The Consolidated Balance Sheets also include liabilities of approximately $66 million and $71 million as of December 31, 2017 and 2016 , respectively, related to workers’ compensation, health and welfare and other employee benefit programs. The liabilities represent an estimate for both reported claims not yet paid and claims incurred but not yet reported, utilizing actuarial methodologies similar to those described above. These amounts are included within accounts payable and other current liabilities and other non-current liabilities. |
Share-based Compensation | Stock-Based Compensation Stock-based compensation cost is measured at the grant date, based on the fair value of the award, and is recognized as expense on a straight-line basis over the vesting period. The Company’s policy is to record compensation expense for stock options, and restricted stock units that are time- and performance-based, for the portion of the award that is expected to vest. Compensation expense related to market-based restricted stock units is recognized provided that the requisite service is rendered, regardless of when, if ever, the market condition is satisfied. We estimate the fair value of restricted stock units using the market price of the Company’s common stock on the date of grant. We estimate the fair value of stock-based and cash unit awards containing a market condition using a Monte Carlo simulation model. Key inputs and assumptions used in the Monte Carlo simulation model include the stock price of the award on the grant date, the expected term, the risk-free interest rate over the expected term, the expected annual dividend yield and the expected stock price volatility. The expected volatility is based on a combination of the historical and implied volatility of the Company’s publicly traded, near-the-money stock options, and the valuation period is based on the vesting period of the awards. The risk-free interest rate is derived from the U.S. Treasury yield curve in effect at the time of grant and, since the Company does not currently pay or plan to pay a dividend on its common stock, the expected dividend yield was zero. |
Business Combinations | Business Combinations The Company uses the acquisition method of accounting for business combinations, which requires that the assets acquired and liabilities assumed be recorded at their respective fair values at the date of acquisition. Assets acquired and liabilities assumed in a business combination that arise from contingencies are recognized if fair value can be reasonably estimated at the acquisition date. The excess, if any, of (i) the fair value of the consideration transferred by the acquirer and the fair value of any non-controlling interest remaining in the acquiree, over (ii) the fair values of the identifiable net assets acquired is recorded as goodwill. Gains and losses on the re-acquisition of license agreements are recorded in the Consolidated Statements of Operations within transaction-related costs, net, upon completion of the respective acquisition. Costs incurred to effect a business combination are expensed as incurred, except for the cost to issue debt related to the acquisition. The Company records contingent consideration resulting from a business combination at its fair value on the acquisition date. The fair value of the contingent consideration is generally estimated by utilizing a Monte Carlo simulation technique, based on a range of possible future results (Level 3). Any changes in contingent consideration are recorded in transaction-related costs, net. During 2015, the Company paid $18 million of contingent consideration associated with the acquisition of Apex, which consisted of $9 million related to the liability recognized at fair value as of the acquisition date and $13 million related to fair value adjustments previously recognized in earnings, partially offset by $4 million of favorable currency exchange rate movements. |
Transaction-related Costs | Transaction-related Costs, net Transaction-related costs, net are classified separately in the Consolidated Statements of Operations. These costs are comprised of expenses related to acquisition-related activities such as due-diligence and other advisory costs, expenses related to the integration of the acquiree’s operations with those of the Company, including the implementation of best practices and process improvements, non-cash gains and losses related to re-acquired rights, expenses related to pre-acquisition contingencies and contingent consideration related to acquisitions. |
Currency Transactions | Currency Transactions Currency gains and losses resulting from foreign currency transactions are generally included in operating expenses within the Consolidated Statement of Operations; however, the net gain or loss of currency transactions on intercompany loans and the unrealized gain or loss on intercompany loan hedges are included within interest expense related to corporate debt, net. During December 31, 2017, the Company recorded a gain of $3 million and during the years ended December 31, 2016 and 2015 , the Company recorded losses of $6 million and $11 million , respectively, on such items. |
New and Recently Issued Accounting Standards | Adoption of New Accounting Pronouncements Scope of Modification Accounting for Share-Based Payment Awards In May 2017, the Financial Accounting Standards Board (“FASB”) issued ASU 2017-09, “Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting,” which provides guidance on the types of changes to the terms or conditions of a share-based payment award to which an entity would be required to apply modification accounting. ASU 2017-09 becomes effective for the Company on January 1, 2018; however, as of December 31, 2017 the Company has elected to adopt the provisions of ASU 2017-09 early on a prospective basis. Accordingly, the adoption of this accounting pronouncement did not have an impact on the Company’s Consolidated Financial Statements. Accounting for Goodwill Impairment In January 2017, the FASB issued ASU 2017-04, “Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment,” which requires an entity to perform its goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and to recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. ASU 2017-04 becomes effective for the Company on January 1, 2020; however, as of October 1, 2017 the Company has elected to adopt the provisions of ASU 2017-04 early on a prospective basis. Accordingly, the adoption of this accounting pronouncement did not have an impact on the Company’s Consolidated Financial Statements. Clarifying the Definition of a Business In January 2017, the FASB issued ASU 2017-01, “Business Combinations (Topic 805): Clarifying the Definition of a Business,” which assists entities in evaluating whether transactions should be accounted for as acquisitions of assets or businesses. ASU 2017-01 becomes effective for the Company on January 1, 2018; however, as of December 31, 2017 the Company has elected to adopt the provisions of ASU 2017-01 early on a prospective basis. Accordingly, the adoption of this accounting pronouncement did not have an impact on the Company’s Consolidated Financial Statements. Restricted Cash In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash,” which clarifies guidance on the classification and presentation of restricted cash in the statement of cash flows. ASU 2016-18 becomes effective for the Company on January 1, 2018; however, as of December 31, 2017, the Company has elected to adopt the provisions of ASU 2016-18 early on a retrospective basis. The following tables provide the impact of adoption on the Company’s Consolidated Statements of Cash Flows for the years ended December 31, 2016 and 2015. Year Ended December 31, 2016 As Previously Reported Effect of Change As Adjusted Decrease in program cash $ 31 $ (31 ) $ — Other, net 3 (2 ) 1 Net cash used in investing activities (2,149 ) (33 ) (2,182 ) Effect of changes in exchange rates on cash and cash equivalents, program and restricted cash (4 ) (2 ) (6 ) Net increase in cash and cash equivalents, program and restricted cash 38 (35 ) 3 Cash and cash equivalents, program and restricted cash, beginning of period 452 265 717 Cash and cash equivalents, program and restricted cash, end of period $ 490 $ 230 $ 720 Year Ended December 31, 2015 As Previously Reported Effect of Change As Adjusted Increase in program cash $ (148 ) $ 148 $ — Other, net 6 (3 ) 3 Net cash used in investing activities (2,830 ) 145 (2,685 ) Effect of changes in exchange rates on cash and cash equivalents, program and restricted cash (41 ) (9 ) (50 ) Net decrease in cash and cash equivalents, program and restricted cash (172 ) 136 (36 ) Cash and cash equivalents, program and restricted cash, beginning of period 624 129 753 Cash and cash equivalents, program and restricted cash, end of period $ 452 $ 265 $ 717 Program cash primarily represents amounts specifically designated to purchase assets under vehicle programs and/or to repay the related debt, as such the Company considers it a restricted cash equivalent under this standard. The following table provides a reconciliation of cash and cash equivalents, program and restricted cash reported within the Consolidated Balance Sheets to the amounts shown in the Consolidated Statements of Cash Flows: As of December 31, 2017 2016 Cash and cash equivalents $ 611 $ 490 Program cash 283 225 Restricted cash (a) 7 5 Total cash and cash equivalents, program and restricted cash $ 901 $ 720 _________ (a) Included within other current assets. Classification of Certain Cash Receipts and Cash Payments In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments,” which clarifies guidance on the classification of certain cash receipts and cash payments in the statement of cash flows. These items include, debt prepayment or debt extinguishment costs, settlement of zero-coupon debt instruments, contingent consideration payments made after a business combination, proceeds from the settlement of life insurance claims, proceeds from the settlement of corporate-owned life insurance policies, and distributions received from equity method investees. ASU 2016-15 becomes effective for the Company on January 1, 2018; however, as of December 31, 2017 the Company has elected to adopt the provisions of ASU 2016-15 early on a retrospective basis. The Company elected to account for distributions received from equity method investees using the nature of the distribution approach. The adoption of this accounting pronouncement did not have an impact on the Company’s Consolidated Financial Statements. Improvements to Employee Share-Based Payment Accounting On January 1, 2017, as a result of a new accounting pronouncement, the Company adopted Accounting Standards Update (”ASU”) 2016-09, “Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting,” which simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, minimum statutory withholding requirements and classification in the statement of cash flows. Accordingly, in the Company’s Consolidated Balance Sheet at January 1, 2017, deferred income tax assets, net of the valuation allowance were increased by $56 million related to previously unrecognized excess tax benefits associated with equity awards, with a corresponding decrease to accumulated deficit, using the modified retrospective method. In 2017, as a result of the adoption of ASU 2016-09, share-based compensation excess tax benefits or deductions are included in the Consolidated Statement of Operations as a component of provision for (benefit from) income taxes, previously these amounts were recognized in equity. In addition, in the Company’s Consolidated Statement of Cash Flows for the years ended December 31, 2016 and 2015, cash taxes paid related to shares directly withheld from employees for tax purposes of $11 million and $43 million , respectively, were reclassified from accounts payable and other current liabilities within net cash provided by operating activities to repurchases of common stock within net cash used in financing activities exclusive of vehicle programs. The Company elected to account for forfeitures on an actual basis, which did not have a material impact on its Consolidated Financial Statements. Recently Issued Accounting Pronouncements Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost On January 1, 2018, as a result of a new accounting pronouncement, the Company adopted ASU 2017-07, “Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Costs and Net Periodic Postretirement Benefit Cost,” which requires an entity to disaggregate the components of net benefit cost recognized in the consolidated statements of operations. The adoption of this accounting pronouncement did not have an impact on the Company’s Consolidated Financial Statements. Recognition and Measurement of Financial Assets and Financial Liabilities On January 1, 2018, as a result of a new accounting pronouncement, the Company adopted ASU 2016-01, “Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities,” which makes limited amendments to the classification and measurement of financial instruments. The new standard amends certain disclosure requirements associated with the fair value of financial instruments. The adoption of this accounting pronouncement did not have a material impact on the Company’s Consolidated Financial Statements. Intra-Entity Transfers of Assets Other Than Inventory On January 1, 2018, as a result of a new accounting pronouncement, the Company adopted ASU 2016-16, “Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory,” which removes the prohibition in Topic 740 against the immediate recognition of the current and deferred income tax effects of intra-entity transfers of assets other than inventory. The adoption of this accounting pronouncement did not have an impact on the Company’s Consolidated Financial Statements. Revenue from Contracts with Customers On January 1, 2018, as a result of a new accounting pronouncement, the Company adopted ASU 2014-09, “Revenue from Contracts with Customers (Topic 606),” which outlines a single model for entities to use in accounting for revenue arising from contracts with customers and supersedes current revenue recognition guidance. The new guidance applies to all contracts with customers except for leases, insurance contracts, financial instruments, certain nonmonetary exchanges and certain guarantees. Also, additional disclosures are required about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments. The Company has adopted the requirements of the new standard on a modified retrospective basis applied to all contracts. Prior periods will not be retrospectively adjusted. As discussed in Leases below, the Company’s vehicle rental revenues will be accounted for under Topic 606 until the adoption of ASU 2016-02, “Leases (Topic 842) on January 1, 2019. Upon adoption of Topic 606, each transaction that generates customer loyalty points results in the deferral of revenue equivalent to the retail value of the redemption of the loyalty points. The associated revenue will be recognized at the time the customer redeems the loyalty points. Previously, the Company did not defer revenue and recorded an expense associated with the incremental cost of providing the future rental at the time when the loyalty points were earned. Accordingly, in the Company’s Consolidated Balance Sheet at January 1, 2018, customer loyalty program liability increased approximately $50 million related to the retail value of customer loyalty points earned, with a corresponding increase to accumulated deficit (approximately $40 million , net of tax) due to the cumulative impact of adopting Topic 606. Certain customers may receive cash-based rebates, which are accounted for as variable consideration under Topic 606. The Company currently estimates these rebates based on the expected amount to be provided to customers and reduces revenue recognized. There will not be significant changes to these rebate estimates under Topic 606. Accounting for Hedging Activities In August 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities,” which amends the existing guidance to allow companies to more accurately present the economic results of an entity’s risk management activities in the financial statements. ASU 2017-12 becomes effective for the Company on January 1, 2019. Early adoption is permitted. The Company is currently evaluating the effect of this accounting pronouncement on its Consolidated Financial Statements. Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued ASU 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which sets forth a current expected credit loss impairment model for financial assets that replaces the current incurred loss model. This model requires a financial asset (or group of financial assets), including trade receivables, measured at amortized cost to be presented at the net amount expected to be collected with an allowance for credit losses deducted from the amortized cost basis. The allowance for credit losses should reflect management’s current estimate of credit losses that are expected to occur over the remaining life of a financial asset. ASU 2016-13 becomes effective for the Company on January 1, 2020. Early adoption is permitted as of January 1, 2019. The adoption of this accounting pronouncement is not expected to have a material impact on the Company's Financial Statements. Leases In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842),” which requires a lessee to recognize all long-term leases on its balance sheet as a liability for its lease obligation, measured at the present value of lease payments not yet paid, and a corresponding asset representing its right to use the underlying asset over the lease term and expands disclosure of key information about leasing arrangements. The ASU does not significantly change a lessee’s recognition, measurement and presentation of expenses and cash flows. Additionally, ASU 2016-02 aligns key aspects of lessor accounting with the new revenue recognition guidance in ASU 2014-09 (see above). ASU 2016-02 becomes effective for the Company on January 1, 2019. Early adoption is permitted. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach which includes a number of optional practical expedients that entities may elect to apply. The Company is currently evaluating and planning for the implementation of this ASU, including assessing its overall impact, and expects most of its operating lease commitments will be subject to the new standard and recognized as operating lease liabilities and right-of-use assets upon adoption, which will materially increase total assets and total liabilities relative to such amounts prior to adoption. The Company has determined portions of its vehicle rental contracts that convey the right to control the use of identified assets are within the scope of the accounting guidance contained in ASU 2016-02. As discussed in Revenue from Contracts with Customers above, the Company’s vehicle rental revenues will be accounted for under the revenue accounting standard Topic 606 effective January 1, 2018, until the adoption of this accounting pronouncement on January 1, 2019. Income Taxes In January 2018, the FASB issued FASB Staff Question and Answer Topic 740, No. 5: Accounting for Global Intangible Low-Taxed Income (“GILTI”), which provides guidance on accounting for the GILTI provisions of the Tax Act. The GILTI provisions impose a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations. The guidance allows accounting for tax on GILTI to be treated as a deferred tax item or as a component of current period income tax expense in the year incurred, subject to an accounting policy election. The Company has not completed its analysis of the GILTI provisions of the Tax Act and therefore has not made an accounting policy election related to such provision. The Company will complete its analysis in a subsequent period not to exceed one year from the date of the enactment of the Tax Act and will elect an accounting policy at such time. |
Summary of Significant Accoun33
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Schedule of Estimated Useful Lives | Useful lives are as follows: Buildings 30 years Furniture, fixtures & equipment 3 to 10 years Capitalized software 3 to 7 years Buses and support vehicles 4 to 15 years |
Summary of Significant Accoun34
Summary of Significant Accounting Policies Reconciliation of cash and cash equivalents (ASU 2016-18) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Reconciliation of cash and cash equivalents (ASU 2016-18) [Abstract] | |
Reconciliation of cash and cash equivalents (2016-18) [Table Text Block] | The following table provides a reconciliation of cash and cash equivalents, program and restricted cash reported within the Consolidated Balance Sheets to the amounts shown in the Consolidated Statements of Cash Flows: As of December 31, 2017 2016 Cash and cash equivalents $ 611 $ 490 Program cash 283 225 Restricted cash (a) 7 5 Total cash and cash equivalents, program and restricted cash $ 901 $ 720 _________ (a) Included within other current assets. |
Summary of Significant Accoun35
Summary of Significant Accounting Policies Cash Flows reconciliation (2016-18) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Cash Flows reconciliation (2016-18) [Abstract] | |
Cash Flows reconciliation (2016-18) [Table Text Block] | The following tables provide the impact of adoption on the Company’s Consolidated Statements of Cash Flows for the years ended December 31, 2016 and 2015. Year Ended December 31, 2016 As Previously Reported Effect of Change As Adjusted Decrease in program cash $ 31 $ (31 ) $ — Other, net 3 (2 ) 1 Net cash used in investing activities (2,149 ) (33 ) (2,182 ) Effect of changes in exchange rates on cash and cash equivalents, program and restricted cash (4 ) (2 ) (6 ) Net increase in cash and cash equivalents, program and restricted cash 38 (35 ) 3 Cash and cash equivalents, program and restricted cash, beginning of period 452 265 717 Cash and cash equivalents, program and restricted cash, end of period $ 490 $ 230 $ 720 Year Ended December 31, 2015 As Previously Reported Effect of Change As Adjusted Increase in program cash $ (148 ) $ 148 $ — Other, net 6 (3 ) 3 Net cash used in investing activities (2,830 ) 145 (2,685 ) Effect of changes in exchange rates on cash and cash equivalents, program and restricted cash (41 ) (9 ) (50 ) Net decrease in cash and cash equivalents, program and restricted cash (172 ) 136 (36 ) Cash and cash equivalents, program and restricted cash, beginning of period 624 129 753 Cash and cash equivalents, program and restricted cash, end of period $ 452 $ 265 $ 717 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share (“EPS”) (shares in millions): Year Ended December 31, 2017 2016 2015 Net income for basic and diluted EPS $ 361 $ 163 $ 313 Basic weighted average shares outstanding 83.4 92.0 103.4 Options and non-vested stock 1.4 1.3 1.6 Diluted weighted average shares outstanding 84.8 93.3 105.0 Earnings per share: Basic $ 4.32 $ 1.78 $ 3.02 Diluted $ 4.25 $ 1.75 $ 2.98 |
Outstanding Common Stock Equivalents That Were Anti-Dilutive | The following table summarizes the Company’s outstanding common stock equivalents that were anti-dilutive and therefore excluded from the computation of diluted EPS (shares in millions): As of December 31, 2017 2016 2015 Non-vested stock (a) 0.5 0.2 0.1 __________ (a) The weighted average grant date fair value for anti-dilutive non-vested stock for 2017, 2016 and 2015 was $38.40 , $52.07 and $61.15 , respectively. |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Summary of Changes to Restructuring-Related Liabilities | The following tables summarize the change to our restructuring-related liabilities and identify the amounts recorded within the Company’s reporting segments for restructuring charges and corresponding payments and utilizations: Personnel Related Facility Related Other (a) Total Balance as of January 1, 2015 $ 14 $ 3 $ — $ 17 Restructuring expense: T15 9 — — 9 Acquisition integration 9 — — 9 Restructuring payment: T15 (12 ) — — (12 ) Acquisition integration (3 ) — — (3 ) Avis Europe (7 ) (2 ) — (9 ) Balance as of December 31, 2015 10 1 — 11 Restructuring expense: T15 15 1 5 21 Acquisition integration 9 — — 9 Avis Europe (1 ) — — (1 ) Restructuring payment/utilization: T15 (12 ) (1 ) (5 ) (18 ) Acquisition integration (15 ) — — (15 ) Avis Europe (1 ) — — (1 ) Balance as of December 31, 2016 5 1 — 6 Restructuring expense: Truck initiative 1 — 4 5 T17 20 — 15 35 Restructuring payment/utilization: Truck initiative (1 ) — (4 ) (5 ) T17 (17 ) (1 ) (15 ) (33 ) T15 (3 ) — — (3 ) Acquisition integration (1 ) — — (1 ) Balance as of December 31, 2017 $ 4 $ — $ — $ 4 __________ (a) Includes expenses primarily related to the disposition of vehicles. Americas International Total Balance as of January 1, 2015 $ 4 $ 13 $ 17 Restructuring expense: T15 6 3 9 Acquisition integration 1 8 9 Restructuring payment: T15 (8 ) (4 ) (12 ) Acquisition integration (1 ) (2 ) (3 ) Avis Europe (1 ) (8 ) (9 ) Balance as of December 31, 2015 1 10 11 Restructuring expense: T15 11 10 21 Acquisition integration — 9 9 Avis Europe — (1 ) (1 ) Restructuring payment/utilization: T15 (11 ) (7 ) (18 ) Acquisition integration — (15 ) (15 ) Avis Europe — (1 ) (1 ) Balance as of December 31, 2016 1 5 6 Restructuring expense: Truck initiative 5 — 5 T17 25 10 35 Restructuring payment/utilization: Truck initiative (5 ) — (5 ) T17 (24 ) (9 ) (33 ) T15 (1 ) (2 ) (3 ) Acquisition integration — (1 ) (1 ) Balance as of December 31, 2017 $ 1 $ 3 $ 4 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | Intangible assets consisted of: As of December 31, 2017 As of December 31, 2016 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortized Intangible Assets License agreements (a) $ 281 $ 140 $ 141 $ 261 $ 109 $ 152 Customer relationships (b) 242 119 123 224 90 134 Other (c) 51 18 33 46 12 34 $ 574 $ 277 $ 297 $ 531 $ 211 $ 320 Unamortized Intangible Assets Goodwill $ 1,073 $ 1,007 Trademarks $ 553 $ 550 _________ (a) Primarily amortized over a period ranging from 0 to 40 years with a weighted average life of 18 years . (b) Primarily amortized over a period ranging from 3 to 20 years with a weighted average life of 12 years . (c) Primarily amortized over a period ranging from 4 to 10 years with a weighted average life of 9 years . |
Schedule of Intangible Assets Amortization Expense | Amortization expense relating to all intangible assets was as follows: Year Ended December 31, 2017 2016 2015 License agreements $ 33 $ 35 $ 31 Customer relationships 24 23 21 Other 5 7 7 Total $ 62 $ 65 $ 59 |
Schedule of Goodwill | The carrying amounts of goodwill and related changes are as follows: Americas International Total Company Gross goodwill as of January 1, 2016 $ 2,124 $ 967 $ 3,091 Accumulated impairment losses as of January 1, 2016 (1,587 ) (531 ) (2,118 ) Goodwill as of January 1, 2016 537 436 973 Acquisitions 2 23 25 Currency translation adjustments and other 13 (4 ) 9 Goodwill as of December 31, 2016 552 455 1,007 Acquisitions — 5 5 Currency translation adjustments and other — 61 61 Goodwill as of December 31, 2017 $ 552 $ 521 $ 1,073 |
Vehicle Rental Activities (Tabl
Vehicle Rental Activities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Components Of Companys Vehicles [Abstract] | |
Components of the Company's Vehicles | The components of vehicles, net within assets under vehicle programs are as follows: As of December 31, 2017 2016 Rental vehicles $ 11,652 $ 10,937 Less: Accumulated depreciation (1,652 ) (1,454 ) 10,000 9,483 Vehicles held for sale 626 981 Vehicles, net $ 10,626 $ 10,464 |
Components of Vehicle Depreciation and Lease Charges | The components of vehicle depreciation and lease charges, net are summarized below: Year Ended December 31, 2017 2016 2015 Depreciation expense $ 1,947 $ 1,877 $ 1,837 Lease charges 222 180 156 (Gain) loss on sale of vehicles, net 52 (10 ) (60 ) Vehicle depreciation and lease charges, net $ 2,221 $ 2,047 $ 1,933 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Taxes [Line Items] | |
Provision for (Benefit From) Income Taxes | The provision for (benefit from) income taxes consists of the following: Year Ended December 31, 2017 2016 2015 Current Federal $ — $ (1 ) $ (32 ) State 5 3 3 Foreign 37 63 40 Current income tax provision 42 65 11 Deferred Federal (205 ) 51 45 State (5 ) 5 (1 ) Foreign 18 (5 ) 14 Deferred income tax provision (192 ) 51 58 Provision for (benefit from) income taxes $ (150 ) $ 116 $ 69 |
Pretax Income (Loss) for Domestic and Foreign Operations | Pretax income for domestic and foreign operations consists of the following: Year Ended December 31, 2017 2016 2015 United States (a) $ 17 $ 127 $ 258 Foreign 194 152 124 Pretax income $ 211 $ 279 $ 382 __________ (a) For the years ended December 31, 2017 , 2016 and 2015 , includes corporate debt extinguishment costs of $3 million , $27 million and $23 million , respectively. |
Deferred Income Tax Assets and Liabilities | Deferred income tax assets and liabilities are comprised of the following: As of December 31, 2017 2016 Deferred income tax assets: Net tax loss carryforwards $ 1,104 $ 1,587 Accrued liabilities and deferred revenue 216 281 Tax credits 24 62 Depreciation and amortization 4 2 Acquisition and integration-related liabilities 2 5 Provision for doubtful accounts 8 7 Other 48 52 Valuation allowance (a) (331 ) (357 ) Deferred income tax assets 1,075 1,639 Deferred income tax liabilities: Depreciation and amortization 121 112 Prepaid expenses 20 32 Other 3 2 Deferred income tax liabilities 144 146 Deferred income tax assets, net $ 931 $ 1,493 __________ (a) The valuation allowance of $331 million at December 31, 2017 relates to tax loss carryforwards and certain deferred tax assets of $302 million and $29 million , respectively. The valuation allowance will be reduced when and if the Company determines it is more likely than not that the related deferred income tax assets will be realized. The valuation allowance of $357 million at December 31, 2016 relates to tax loss carryforwards, foreign tax credits and certain deferred tax assets of $289 million , $39 million and $29 million , respectively. |
Reconciliation of U.S Federal Income Tax Statutory Rate and Effective Income Tax Rate | The reconciliation between the U.S. federal income tax statutory rate and the Company’s effective income tax rate is as follows: Year Ended December 31, 2017 2016 2015 U.S. federal statutory rate 35.0 % 35.0 % 35.0 % Adjustments to reconcile to the effective rate: State and local income taxes, net of federal tax benefits 3.8 2.0 2.8 Changes in valuation allowances (4.7 ) (0.2 ) (0.6 ) Taxes on foreign operations at rates different than statutory U.S. federal rates (3.6 ) 3.1 3.7 Resolution of a prior-year tax matter (a) — — (25.6 ) Stock-based compensation (3.4 ) — — Non-deductible transaction-related costs — — 0.9 U.S. Tax Act benefit (100.8 ) — — Other non-deductible expenses 2.2 1.7 1.8 Other 0.4 — 0.1 (71.1 )% 41.6 % 18.1 % __________ a) For the year ended December 31, 2015, the Company recognized a $98 million income tax benefit from the resolution of a prior - year income tax matter. |
Changes in Gross Unrecognized Tax Benefits | The following is a tabular reconciliation of the gross amount of unrecognized tax benefits for the year: 2017 2016 2015 Balance at January 1 $ 59 $ 56 $ 63 Additions for tax positions related to current year 6 3 6 Additions for tax positions for prior years 9 3 3 Reductions for tax positions for prior years (10 ) (3 ) (14 ) Settlements — — (1 ) Statute of limitations (1 ) — (1 ) Balance at December 31 $ 63 $ 59 $ 56 |
Unrecognized Tax Benefits | The following table presents unrecognized tax benefits: As of December 31, 2017 2016 Unrecognized tax benefit in non-current income taxes payable (a) $ 46 $ 40 Accrued interest payable on potential tax liabilities (b) 26 29 __________ (a) Pursuant to the agreements governing the disposition of certain subsidiaries in 2006, the Company is entitled to indemnification for certain pre-disposition tax contingencies. As of December 31, 2017 and 2016 , $13 million and $15 million , respectively, of unrecognized tax benefits are related to tax contingencies for which the Company believes it is entitled to indemnification. (b) The Company recognizes potential interest related to unrecognized tax benefits within interest expense related to corporate debt, net on the accompanying Consolidated Statements of Operations. Penalties incurred during the years ended December 31, 2017 , 2016 and 2015 , were not significant and were recognized as a component of the provision for income taxes. |
Vehicle Programs | |
Income Taxes [Line Items] | |
Deferred Income Tax Assets and Liabilities | Deferred income tax assets and liabilities related to vehicle programs are comprised of the following: As of December 31, 2017 2016 Deferred income tax assets: Depreciation and amortization $ 58 $ 52 Deferred income tax liabilities: Depreciation and amortization 1,652 2,481 Deferred income tax liabilities under vehicle programs, net $ 1,594 $ 2,429 |
Other Current Assets (Tables)
Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Schedule Of Other Current Assets [Abstract] | |
Schedule of Other Current Assets | Other current assets consisted of: As of December 31, 2017 2016 Prepaid expenses $ 196 $ 212 Sales and use taxes 174 153 Other 163 154 Other current assets $ 533 $ 519 |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment, Net | Property and equipment, net consisted of: As of December 31, 2017 2016 Land $ 49 $ 47 Buildings and leasehold improvements 626 597 Capitalized software 583 524 Furniture, fixtures and equipment 387 354 Projects in process 118 99 Buses and support vehicles 93 91 1,856 1,712 Less: Accumulated depreciation and amortization (1,152 ) (1,027 ) Property and equipment, net $ 704 $ 685 |
Accounts Payable and Other Cu43
Accounts Payable and Other Current Liabilities Accounts Payable and Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block] | Accounts payable and other current liabilities consisted of: As of December 31, 2017 2016 Accounts payable $ 359 $ 343 Accrued sales and use taxes 218 206 Accrued payroll and related 176 173 Public liability and property damage insurance liabilities – current 145 141 Deferred revenue – current 135 114 Accrued commissions 117 86 Accrued insurance 103 70 Other 366 355 Accounts payable and other current liabilities $ 1,619 $ 1,488 |
Long-term Debt and Borrowing 44
Long-term Debt and Borrowing Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Long-term debt and other borrowing arrangements consisted of: Maturity As of December 31, 2017 2016 Floating Rate Senior Notes December 2017 — 249 Floating Rate Term Loan March 2019 — 144 6% euro-denominated Senior Notes March 2021 — 194 Floating Rate Term Loan (a) March 2022 1,136 816 5⅛% Senior Notes June 2022 400 400 5½% Senior Notes April 2023 675 675 6⅜% Senior Notes April 2024 350 350 4⅛% euro-denominated Senior Notes November 2024 360 316 5¼% Senior Notes March 2025 375 375 4½% euro-denominated Senior Notes May 2025 300 — Other (b) 49 57 Deferred financing fees (46 ) (53 ) Total 3,599 3,523 Less: Short-term debt and current portion of long-term debt 26 279 Long-term debt $ 3,573 $ 3,244 __________ (a) The floating rate term loan is part of the Company’s senior revolving credit facility, which is secured by pledges of capital stock of certain subsidiaries of the Company, and liens on substantially all of the Company’s intellectual property and certain other real and personal property. (b) Primarily includes capital leases which are secured by liens on the related assets. |
Contractual Maturities of Company's Corporate Debt | The following table provides contractual maturities of the Company’s corporate debt at December 31, 2017 : Year Amount 2018 $ 26 2019 20 2020 16 2021 14 2022 1,493 Thereafter 2,076 $ 3,645 |
Schedule of Committed Credit Facilities | At December 31, 2017 , the committed corporate credit facilities available to the Company and/or its subsidiaries were as follows: Total Capacity Outstanding Borrowings Letters of Credit Issued Available Capacity Senior revolving credit facility maturing 2021 (a) $ 1,800 $ — $ 782 $ 1,018 Other facilities (b) 3 3 — — __________ (a) The senior revolving credit facility bears interest at one-month LIBOR plus 200 basis points and is part of the Company’s senior credit facility, which is secured by pledges of capital stock of certain subsidiaries of the Company, and liens on substantially all of the Company’s intellectual property and certain other real and personal property. (b) These facilities encompass bank overdraft lines of credit, bearing interest of 3.10% to 3.18% as of December 31, 2017. |
Debt Under Vehicle Programs a45
Debt Under Vehicle Programs and Borrowing Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Debt Under Vehicle Programs | Debt under vehicle programs, including related party debt due to Avis Budget Rental Car Funding (AESOP) LLC (“Avis Budget Rental Car Funding”), consisted of: As of December 31, 2017 2016 Americas – Debt due to Avis Budget Rental Car Funding $ 6,516 $ 6,733 Americas – Debt borrowings 660 577 International – Debt borrowings (a) 1,942 1,449 International – Capital leases 146 162 Other 1 7 Deferred financing fees (b) (44 ) (50 ) Total $ 9,221 $ 8,878 __________ (a) The increase reflects additional borrowings principally to fund increases in the Company's car rental fleet. (b) Deferred financing fees related to Debt due to Avis Budget Rental Car Funding as of December 31, 2017 and 2016 were $36 million and $38 million, respectively. |
Schedule of Contractual Maturities | The following table provides the contractual maturities of the Company’s debt under vehicle programs, including related party debt due to Avis Budget Rental Car Funding, at December 31, 2017 : Debt under Vehicle Programs 2018 (a) $ 1,886 2019 3,170 2020 1,868 2021 1,019 2022 883 Thereafter 439 $ 9,265 __________ (a) Vehicle-backed debt maturing within one year primarily represents term asset-backed securities. |
Schedule Of Available Funding Under Vehicle Program | The following table presents available funding under the Company’s debt arrangements related to its vehicle programs, including related party debt due to Avis Budget Rental Car Funding, at December 31, 2017 : Total Capacity (a) Outstanding Borrowings Available Capacity Americas – Debt due to Avis Budget Rental Car Funding (b) $ 9,296 $ 6,516 $ 2,780 Americas – Debt borrowings (c) 924 660 264 International – Debt borrowings (d) 2,942 1,942 1,000 International – Capital leases (e) 169 146 23 Other 1 1 — Total $ 13,332 $ 9,265 $ 4,067 __________ (a) Capacity is subject to maintaining sufficient assets to collateralize debt. (b) The outstanding debt is collateralized by $8.0 billion of underlying vehicles and related assets. (c) The outstanding debt is collateralized by $0.9 billion of underlying vehicles and related assets. (d) The outstanding debt is collateralized by $2.3 billion of underlying vehicles and related assets. (e) The outstanding debt is collateralized by $0.2 billion of underlying vehicles and related assets. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Lease Payments | Future minimum lease payments required under noncancelable operating leases, including minimum concession fees charged by airport authorities, which in many locations are recoverable from vehicle rental customers, as of December 31, 2017 , are as follows: Amount 2018 $ 729 2019 611 2020 401 2021 291 2022 183 Thereafter 549 $ 2,764 |
Schedule of Rent Expense | These concession fees, which are included in the Company’s total rent expense, were as follows for the years ended December 31: 2017 2016 2015 Rent expense (including minimum concession fees) $ 715 $ 699 $ 679 Contingent concession expense 221 214 195 936 913 874 Less: sublease rental income (4 ) (5 ) (5 ) Total $ 932 $ 908 $ 869 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | The components of accumulated other comprehensive income (loss) are as follows: Currency Translation Adjustments Net Unrealized Gains (Losses) on Cash Flow Hedges (a) Net Unrealized Gains (Losses) on Available-For-Sale Securities Minimum Pension Liability Adjustment (b) Accumulated Other Comprehensive Income (Loss) Balance, January 1, 2015 $ 51 $ (1 ) $ 2 $ (74 ) $ (22 ) Other comprehensive income (loss) before reclassifications (131 ) (6 ) (2 ) 6 (133 ) Amounts reclassified from accumulated other comprehensive income (loss) — 5 — 3 8 Net current-period other comprehensive income (loss) (131 ) (1 ) (2 ) 9 (125 ) Balance, December 31, 2015 (80 ) (2 ) — (65 ) (147 ) Other comprehensive income (loss) before reclassifications 41 — 1 (57 ) (15 ) Amounts reclassified from accumulated other comprehensive income (loss) — 4 — 4 8 Net current-period other comprehensive income (loss) 41 4 1 (53 ) (7 ) Balance, December 31, 2016 (39 ) 2 1 (118 ) (154 ) Other comprehensive income (loss) before reclassifications 110 1 1 11 123 Amounts reclassified from accumulated other comprehensive income (loss) — 2 — 5 7 Net current-period other comprehensive income (loss) 110 3 1 16 130 Balance, December 31, 2017 $ 71 $ 5 $ 2 $ (102 ) $ (24 ) __________ All components of accumulated other comprehensive income (loss) are net of tax, except currency translation adjustments, which exclude income taxes related to indefinite investments in foreign subsidiaries (see Note 8-Income Taxes for potential impacts of the Tax Act) and include a $33 million gain, net of tax, related to the Company’s hedge of its investment in euro-denominated foreign operations (See Note 18-Financial Instruments). As a result of the Tax Act, management is evaluating its intention to continue to indefinitely reinvest in foreign subsidiaries. (a) For the years ended December 31, 2017 , 2016 and 2015 , the amounts reclassified from accumulated other comprehensive income (loss) into corporate interest expense were $4 million ( $2 million , net of tax), $6 million ( $4 million , net of tax) and $7 million ( $4 million , net of tax), respectively. For the years ended December 31, 2016 and 2015 , amounts reclassified from accumulated comprehensive income (loss) into vehicle interest expense were $1 million ( $0 million , net of tax) and $1 million ( $1 million , net of tax), respectively. (b) For the years ended December 31, 2017 , 2016 and 2015 , amounts reclassified from accumulated other comprehensive income (loss) into selling, general and administrative expenses were $8 million ( $5 million , net of tax), $6 million ( $4 million , net of tax) and $5 million ( $3 million , net of tax), respectively |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Share-Based Payment Award Stock Options Valuation Assumptions | The weighted average assumptions used in the Monte Carlo simulation model to calculate the fair value of the Company’s stock unit awards are outlined in the table below. 2016 2015 Expected volatility of stock price 46% 37% Risk-free interest rate 0.98% 0.74% Valuation period 3 years 3 years Dividend yield 0% 0% |
Annual Activity of RSUs | Annual activity related to stock units consisted of (in thousands of shares): Number of Shares Weighted Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value (in millions) Time-based RSUs Outstanding at January 1, 2017 878 $ 34.83 Granted (a) 914 35.32 Vested (b) (470 ) 37.12 Forfeited (162 ) 33.07 Outstanding and expected to vest at December 31, 2017 (c) 1,160 $ 34.54 0.9 $ 51 Performance-based and market-based RSUs Outstanding at January 1, 2017 923 $ 34.11 Granted (a) 572 35.21 Vested (b) (146 ) 36.55 Forfeited (355 ) 37.82 Outstanding at December 31, 2017 994 $ 33.06 1.4 $ 44 Outstanding and expected to vest at December 31, 2017 (c) 97 $ 36.64 2.2 $ 4 __________ (a) Reflects the maximum number of stock units assuming achievement of all performance-, market- and time-vesting criteria and does not include those for non-employee directors, which are discussed separately below. The weighted-average fair value of time-based RSUs and performance-based and market-based RSUs granted in 2016 was $25.92 and $23.33 , respectively, and the weighted-average fair value of time-based RSUs and performance-based and market-based RSUs granted in 2015 was $54.70 and $55.51 , respectively. (b) The total fair value of RSUs vested during 2017 , 2016 and 2015 was $23 million , $31 million and $25 million , respectively. The total grant date fair value of cash units vested during the year 2016 was $2 million . (c) Aggregate unrecognized compensation expense related to time-based RSUs and performance-based and market-based RSUs amounted to $31 million and will be recognized over a weighted average vesting period of 1.0 year. |
Summary of Share Based Compensation Shares Authorized Under Stock Option Plans by Exercise Price Range | The annual stock option activity consisted of (in thousands of shares): Number of Options Weighted Weighted Aggregate Intrinsic Value (in millions) Outstanding at January 1, 2017 810 $ 2.91 2.3 $ 27 Granted (a) — — — Exercised (b) (537 ) 0.79 21 Forfeited/expired — — Outstanding and exercisable at December 31, 2017 273 $ 7.08 1.7 $ 10 __________ (a) No stock options were granted during 2016 or 2015 . (b) Stock options exercised during 2016 and 2015 had intrinsic values of $1 million in each period, and the cash received from the exercise of options was insignificant in 2017 , 2016 and 2015 . |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Summary of Net Periodic Benefit Cost | The components of net periodic benefit cost consisted of the following: Year Ended December 31, 2017 2016 2015 Service cost $ 5 $ 4 $ 5 Interest cost 19 21 22 Expected return on plan assets (30 ) (27 ) (31 ) Amortization of unrecognized amounts 8 5 5 Net periodic benefit cost (a) $ 2 $ 3 $ 1 __________ (a) All components of the net periodic benefit cost are recorded within selling, general and administrative expenses. |
Summary of Funded Status of Pension Plans | The Company uses a measurement date of December 31 for its pension plans. The funded status of the pension plans were as follows: As of December 31, Change in Benefit Obligation 2017 2016 Benefit obligation at end of prior year $ 720 $ 656 Service cost 5 4 Interest cost 19 21 Actuarial (gain) loss 15 115 Currency translation adjustment 44 (53 ) Net benefits paid (24 ) (23 ) Benefit obligation at end of current year $ 779 $ 720 Change in Plan Assets Fair value of assets at end of prior year $ 523 $ 527 Actual return on plan assets 59 60 Employer contributions 24 12 Currency translation adjustment 32 (53 ) Net benefits paid (24 ) (23 ) Fair value of assets at end of current year $ 614 $ 523 |
Schedule of Net Funded Status [Table Text Block] | As of December 31, Funded Status 2017 2016 Classification of net balance sheet assets (liabilities): Non-current assets $ 24 $ — Current liabilities (3 ) (1 ) Non-current liabilities (186 ) (196 ) Net funded status $ (165 ) $ (197 ) |
Summary of Assumptions Used to Determine Pension Obligations and Pension Costs | The following assumptions were used to determine pension obligations and pension costs for the principal plans in which the Company’s employees participated: For the Year Ended December 31, U.S. Pension Benefit Plans 2017 2016 2015 Discount rate: Net periodic benefit cost 3.90 % 4.40 % 4.00 % Benefit obligation 3.50 % 3.90 % 4.40 % Long-term rate of return on plan assets 7.00 % 7.00 % 7.25 % Non-U.S. Pension Benefit Plans Discount rate: Net periodic benefit cost 2.45 % 3.45 % 3.30 % Benefit obligation 2.55 % 2.45 % 3.45 % Long-term rate of return on plan assets 4.70 % 4.45 % 4.65 % |
Summary of Defined Benefit Pension Plans' Assets Fair Value | The following table presents the defined benefit pension plans’ assets measured at fair value, as of December 31: 2017 Asset Class Level 1 Level 2 Total Cash equivalents and short-term investments $ 12 $ 29 $ 41 U.S. equities 102 43 145 Non-U.S. equities 50 100 150 Real estate — 18 18 Government bonds 7 11 18 Corporate bonds 90 37 127 Other assets 3 112 115 Total assets $ 264 $ 350 $ 614 2016 Asset Class Level 1 Level 2 Total Cash equivalents and short-term investments $ 12 $ 15 $ 27 U.S. equities 87 34 121 Non-U.S. equities 40 70 110 Real estate — 15 15 Government bonds 7 70 77 Corporate bonds 82 40 122 Other assets 2 49 51 Total assets $ 230 $ 293 $ 523 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Amounts of Outstanding Derivative Positions | The Company held derivative instruments with absolute notional values as follows: As of December 31, 2017 2016 Interest rate caps (a) $ 10,968 $ 9,736 Interest rate swaps 1,000 1,950 Foreign exchange contracts 934 692 __________ (a) Represents $8.0 billion of interest rate caps sold, partially offset by approximately $3.0 billion of interest rate caps purchased at December 31, 2017 and $7.4 billion of interest rate caps sold, partially offset by approximately $2.3 billion of interest rate caps purchased at December 31, 2016 . These amounts exclude $5.0 billion and $5.1 billion of interest rate caps purchased by the Company’s Avis Budget Rental Car Funding subsidiary at December 31, 2017 and 2016 , respectively. |
Fair Value of Derivative Instruments | Fair values (Level 2) of derivative instruments are as follows: As of December 31, 2017 As of December 31, 2016 Fair Value, Asset Derivatives Fair Value, Liability Derivatives Fair Value, Asset Derivatives Fair Value, Liability Derivatives Derivatives designated as hedging instruments Interest rate swaps (a) $ 8 $ — $ 7 $ 4 Derivatives not designated as hedging instruments Interest rate caps (b) — 1 1 7 Foreign exchange contracts (c) 3 7 7 2 Total $ 11 $ 8 $ 15 $ 13 __________ Amounts in this table exclude derivatives issued by Avis Budget Rental Car Funding, as it is not consolidated by the Company; however, certain amounts related to the derivatives held by Avis Budget Rental Car Funding are included within accumulated other comprehensive income (loss), as discussed in Note 15-Stockholders’ Equity. (a) Included in other non-current assets or other non-current liabilities. (b) Included in assets under vehicle programs or liabilities under vehicle programs. (c) Included in other current assets or other current liabilities. |
Schedule of Effect of Derivatives Recognized | The effects of derivatives recognized in the Company’s Consolidated Financial Statements are as follows: Year Ended December 31, 2017 2016 2015 Financial instruments designated as hedging instruments (a) Interest rate swaps $ 3 $ 4 $ (1 ) Euro-denominated notes (50 ) 14 34 Financial instruments not designated as hedging instruments (b) Foreign exchange contracts (c) (42 ) 42 48 Interest rate caps (d) (1 ) (2 ) (2 ) Commodity contracts (e) (1 ) — — Total $ (91 ) $ 58 $ 79 __________ (a) Recognized, net of tax, as a component of accumulated other comprehensive income (loss) within stockholders’ equity. (b) Gains (losses) related to derivative instruments are expected to be largely offset by (losses) gains on the underlying exposures being hedged. (c) For the year ended December 31, 2017 , included a $23 million loss included in interest expense and a $19 million loss included in operating expenses. For the year ended December 31, 2016 , included a $68 million gain in interest expense and a $26 million loss included in operating expenses. For the year ended December 31, 2015 , included a $32 million gain in interest expense and a $16 million gain included in operating expenses. (d) For the years ended December 31, 2017 , 2016 and 2015, amounts are included in vehicle interest, net. (e) Included in operating expenses. |
Schedule of Carrying Amounts and Estimated Fair Values | Debt Instruments The carrying amounts and estimated fair values (Level 2) of debt instruments are as follows: As of December 31, 2017 As of December 31, 2016 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Corporate debt Short-term debt and current portion of long-term debt $ 26 $ 26 $ 279 $ 280 Long-term debt 3,573 3,677 3,244 3,265 Debt under vehicle programs Vehicle-backed debt due to Avis Budget Rental Car Funding $ 6,480 $ 6,537 $ 6,695 $ 6,722 Vehicle-backed debt 2,740 2,745 2,176 2,187 Interest rate swaps and interest rate caps (a) 1 1 7 7 ___________ (a) Derivatives in liability position. |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Summary of Operating Segments | Year Ended December 31, 2017 Americas International Corporate and Other (a) Total Net revenues $ 6,100 $ 2,748 $ — $ 8,848 Vehicle depreciation and lease charges, net 1,671 550 — 2,221 Vehicle interest, net 226 60 — 286 Adjusted EBITDA 486 305 (56 ) 735 Non-vehicle depreciation and amortization 168 91 — 259 Assets exclusive of assets under vehicle programs 3,388 2,353 79 5,820 Assets under vehicle programs 9,017 2,862 — 11,879 Capital expenditures (excluding vehicles) 122 62 13 197 __________ (a) Primarily represents unallocated corporate expenses and receivables from our former subsidiaries . Year Ended December 31, 2016 Americas International Corporate and Other (a) Total Net revenues $ 6,121 $ 2,538 $ — $ 8,659 Vehicle depreciation and lease charges, net 1,559 488 — 2,047 Vehicle interest, net 226 58 — 284 Adjusted EBITDA 633 273 (68 ) 838 Non-vehicle depreciation and amortization 165 88 — 253 Assets exclusive of assets under vehicle programs 4,017 1,990 58 6,065 Assets under vehicle programs 9,210 2,368 — 11,578 Capital expenditures (excluding vehicles) 121 62 7 190 __________ (a) Primarily represents unallocated corporate expenses and receivables from our former subsidiaries. Year Ended December 31, 2015 Americas International Corporate and Other (a) Total Net revenues $ 6,069 $ 2,433 $ — $ 8,502 Vehicle depreciation and lease charges, net 1,478 455 — 1,933 Vehicle interest, net 234 55 — 289 Adjusted EBITDA 682 277 (56 ) 903 Non-vehicle depreciation and amortization 143 75 — 218 Assets exclusive of assets under vehicle programs 3,940 1,901 77 5,918 Assets under vehicle programs 9,440 2,276 — 11,716 Capital expenditures (excluding vehicles) 131 68 — 199 __________ (a) Primarily represents unallocated corporate expenses and receivables from our former subsidiaries. |
Reconciliation of Adjusted EBITDA to Income (Loss) | Provided below is a reconciliation of Adjusted EBITDA to income before income taxes. For the Year Ended December 31, 2017 2016 2015 Adjusted EBITDA $ 735 $ 838 $ 903 Less: Non-vehicle related depreciation and amortization (a) 259 253 218 Interest expense related to corporate debt, net 188 203 194 Early extinguishment of corporate debt 3 27 23 Restructuring and other related charges 63 29 18 Transaction-related costs, net 23 21 68 Impairment 2 — — Charges for legal matter, net (b) (14 ) 26 — Income before income taxes $ 211 $ 279 $ 382 __________ (a) Inc ludes amortization of intangible assets recognized in purchase accounting of $58 million in 2017 , $59 million in 2016 and $55 million in 2015 . (b) Reported within operating expenses in our Consolidated Statements of Operations . |
Summary of Geographic Segment Information | The geographic segment information provided below is classified based on the geographic location of the Company’s subsidiaries. United States All Other Countries Total 2017 Net revenues $ 5,629 $ 3,219 $ 8,848 Assets exclusive of assets under vehicle programs 3,069 2,751 5,820 Assets under vehicle programs 8,192 3,687 11,879 Net long-lived assets 1,451 1,176 2,627 2016 Net revenues $ 5,674 $ 2,985 $ 8,659 Assets exclusive of assets under vehicle programs 3,699 2,366 6,065 Assets under vehicle programs 8,552 3,026 11,578 Net long-lived assets 1,489 1,073 2,562 2015 Net revenues $ 5,635 $ 2,867 $ 8,502 Assets exclusive of assets under vehicle programs 3,677 2,241 5,918 Assets under vehicle programs 8,786 2,930 11,716 Net long-lived assets 1,502 1,069 2,571 |
Guarantor and Non-Guarantor C52
Guarantor and Non-Guarantor Consolidating Financial Statements (Tables) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||
Consolidating Condensed Income Statement | For the Year Ended December 31, 2017 Parent Subsidiary Issuers Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Total Revenues Vehicle rental $ — $ — $ 4,108 $ 2,111 $ — $ 6,219 Other — — 1,204 3,820 (2,395 ) 2,629 Net revenues — — 5,312 5,931 (2,395 ) 8,848 Expenses Operating 3 20 2,598 1,851 — 4,472 Vehicle depreciation and lease charges, net — — 2,226 2,183 (2,188 ) 2,221 Selling, general and administrative 39 8 619 454 — 1,120 Vehicle interest, net — — 199 294 (207 ) 286 Non-vehicle related depreciation and amortization — 1 160 98 — 259 Interest expense related to corporate debt, net: Interest expense — 157 1 30 — 188 Intercompany interest expense (income) (12 ) 95 23 (106 ) — — Early extinguishment of debt — 4 — (1 ) — 3 Restructuring and other related charges — 7 44 12 — 63 Transaction-related costs, net — 1 3 19 — 23 Transaction-related costs, net Impairment — — 2 — — 2 Total expenses 30 293 5,875 4,834 (2,395 ) 8,637 Income (loss) before income taxes and equity in earnings of subsidiaries (30 ) (293 ) (563 ) 1,097 — 211 Provision for (benefit from) income taxes (5 ) 267 (527 ) 115 — (150 ) Equity in earnings of subsidiaries 386 946 982 — (2,314 ) — Net income $ 361 $ 386 $ 946 $ 982 $ (2,314 ) $ 361 Comprehensive income $ 491 $ 515 $ 1,073 $ 1,103 $ (2,691 ) $ 491 | For the Year Ended December 31, 2016 Parent Subsidiary Issuers Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Revenues Vehicle rental $ — $ — $ 4,134 $ 1,947 $ — $ 6,081 Other — — 1,209 3,563 (2,194 ) 2,578 Net revenues — — 5,343 5,510 (2,194 ) 8,659 Expenses Operating 4 18 2,622 1,738 — 4,382 Vehicle depreciation and lease charges, net — — 1,993 2,045 (1,991 ) 2,047 Selling, general and administrative 38 18 631 447 — 1,134 Vehicle interest, net — — 198 289 (203 ) 284 Non-vehicle related depreciation and amortization — 2 155 96 — 253 Interest expense related to corporate debt, net: Interest expense — 141 3 59 — 203 Intercompany interest expense (income) (13 ) (7 ) 23 (3 ) — — Early extinguishment of debt — 10 — 17 — 27 Restructuring and other related charges — — 9 20 — 29 Transaction-related costs, net — 2 1 18 — 21 Total expenses 29 184 5,635 4,726 (2,194 ) 8,380 Income (loss) before income taxes and equity in earnings of subsidiaries (29 ) (184 ) (292 ) 784 — 279 Provision for (benefit from) income taxes (11 ) (70 ) 123 74 — 116 Equity in earnings of subsidiaries 181 295 710 — (1,186 ) — Net income $ 163 $ 181 $ 295 $ 710 $ (1,186 ) $ 163 Comprehensive income $ 156 $ 173 $ 283 $ 712 $ (1,168 ) $ 156 | For the Year Ended December 31, 2015 Parent Subsidiary Issuers Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Revenues Vehicle rental $ — $ — $ 4,124 $ 1,902 $ — $ 6,026 Other — — 1,181 3,335 (2,040 ) 2,476 Net revenues — — 5,305 5,237 (2,040 ) 8,502 Expenses Operating 2 17 2,587 1,678 — 4,284 Vehicle depreciation and lease charges, net — 1 1,819 1,936 (1,823 ) 1,933 Selling, general and administrative 32 15 619 427 — 1,093 Vehicle interest, net — — 204 302 (217 ) 289 Non-vehicle related depreciation and amortization — 1 133 84 — 218 Interest expense related to corporate debt, net: Interest expense — 159 (5 ) 40 — 194 Intercompany interest expense (income) (12 ) (11 ) 16 7 — — Early extinguishment of debt — 23 — — — 23 Transaction-related costs, net — 22 6 40 — 68 Restructuring and other related charges — — 6 12 — 18 Total expenses 22 227 5,385 4,526 (2,040 ) 8,120 Income (loss) before income taxes and equity in earnings of subsidiaries (22 ) (227 ) (80 ) 711 — 382 Provision for (benefit from) income taxes (9 ) (178 ) 170 86 — 69 Equity in earnings of subsidiaries 326 375 625 — (1,326 ) — Net income $ 313 $ 326 $ 375 $ 625 $ (1,326 ) $ 313 Comprehensive income $ 188 $ 203 $ 253 $ 504 $ (960 ) $ 188 |
Consolidating Condensed Balance Sheet | As of December 31, 2017 Parent Subsidiary Issuers Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Assets Current assets: Cash and cash equivalents $ 4 $ 14 $ — $ 593 $ — $ 611 Receivables, net — — 255 667 — 922 Other current assets 4 89 101 339 — 533 Total current assets 8 103 356 1,599 — 2,066 Property and equipment, net — 167 321 216 — 704 Deferred income taxes 14 704 154 59 — 931 Goodwill — — 471 602 — 1,073 Other intangibles, net — 27 480 343 — 850 Other non-current assets 46 29 16 105 — 196 Intercompany receivables 187 382 1,506 824 (2,899 ) — Investment in subsidiaries 381 4,681 3,938 — (9,000 ) — Total assets exclusive of assets under vehicle programs 636 6,093 7,242 3,748 (11,899 ) 5,820 Assets under vehicle programs: Program cash — — — 283 — 283 Vehicles, net — 34 61 10,531 — 10,626 Receivables from vehicle manufacturers and other — 1 — 546 — 547 Investment in Avis Budget Rental Car Funding (AESOP) LLC-related party — — — 423 — 423 — 35 61 11,783 — 11,879 Total assets $ 636 $ 6,128 $ 7,303 $ 15,531 $ (11,899 ) $ 17,699 Liabilities and stockholders’ equity Current liabilities: Accounts payable and other current liabilities $ 23 $ 207 $ 552 $ 837 $ — $ 1,619 Short-term debt and current portion of long-term debt — 17 3 6 — 26 Total current liabilities 23 224 555 843 — 1,645 Long-term debt — 2,910 3 660 — 3,573 Other non-current liabilities 40 83 216 378 — 717 Intercompany payables — 2,515 382 2 (2,899 ) — Total liabilities exclusive of liabilities under vehicle programs 63 5,732 1,156 1,883 (2,899 ) 5,935 Liabilities under vehicle programs: Debt — 15 57 2,669 — 2,741 Due to Avis Budget Rental Car Funding (AESOP) LLC-related party — — — 6,480 — 6,480 Deferred income taxes — — 1,407 187 — 1,594 Other — — 2 374 — 376 — 15 1,466 9,710 — 11,191 Total stockholders’ equity 573 381 4,681 3,938 (9,000 ) 573 Total liabilities and stockholders’ equity $ 636 $ 6,128 $ 7,303 $ 15,531 $ (11,899 ) $ 17,699 | As of December 31, 2016 Parent Subsidiary Issuers Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Assets Current assets: Cash and cash equivalents $ 3 $ 12 $ — $ 475 $ — $ 490 Receivables, net — — 231 577 — 808 Other current assets 2 101 90 326 — 519 Total current assets 5 113 321 1,378 — 1,817 Property and equipment, net — 148 341 196 — 685 Deferred income taxes 20 1,219 268 — (14 ) 1,493 Goodwill — — 489 518 — 1,007 Other intangibles, net — 28 502 340 — 870 Other non-current assets 75 24 16 78 — 193 Intercompany receivables 171 359 1,466 670 (2,666 ) — Investment in subsidiaries 42 3,717 3,698 — (7,457 ) — Total assets exclusive of assets under vehicle programs 313 5,608 7,101 3,180 (10,137 ) 6,065 Assets under vehicle programs: Program cash — — — 225 — 225 Vehicles, net — 24 70 10,370 — 10,464 Receivables from vehicle manufacturers and other — 1 — 526 — 527 Investment in Avis Budget Rental Car Funding (AESOP) LLC-related party — — — 362 — 362 — 25 70 11,483 — 11,578 Total assets $ 313 $ 5,633 $ 7,171 $ 14,663 $ (10,137 ) $ 17,643 Liabilities and stockholders’ equity Current liabilities: Accounts payable and other current liabilities $ 23 $ 189 $ 512 $ 764 $ — $ 1,488 Short-term debt and current portion of long-term debt — 264 3 12 — 279 Total current liabilities 23 453 515 776 — 1,767 Long-term debt — 2,730 3 511 — 3,244 Other non-current liabilities 69 88 253 368 (14 ) 764 Intercompany payables — 2,306 359 1 (2,666 ) — Total liabilities exclusive of liabilities under vehicle programs 92 5,577 1,130 1,656 (2,680 ) 5,775 Liabilities under vehicle programs: Debt — 14 66 2,103 — 2,183 Due to Avis Budget Rental Car Funding (AESOP) LLC-related party — — — 6,695 — 6,695 Deferred income taxes — — 2,258 171 — 2,429 Other — — — 340 — 340 — 14 2,324 9,309 — 11,647 Total stockholders’ equity 221 42 3,717 3,698 (7,457 ) 221 Total liabilities and stockholders’ equity $ 313 $ 5,633 $ 7,171 $ 14,663 $ (10,137 ) $ 17,643 | |
Consolidating Condensed Cash Flow Statement | Consolidating Condensed Statements of Cash Flows For the Year Ended December 31, 2017 Parent Subsidiary Issuers Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Net cash provided by (used in) operating activities $ 110 $ (89 ) $ 97 $ 2,697 $ (167 ) $ 2,648 Investing activities Property and equipment additions — (49 ) (81 ) (67 ) — (197 ) Proceeds received on asset sales — 1 — 7 — 8 Net assets acquired (net of cash acquired) — (1 ) (5 ) (15 ) — (21 ) Intercompany loan receipts (advances) — — — (264 ) 264 — Other, net 100 110 110 5 (320 ) 5 Net cash provided by (used in) investing activities exclusive of vehicle programs 100 61 24 (334 ) (56 ) (205 ) Vehicle programs: Investment in vehicles — (1 ) — (11,537 ) — (11,538 ) Proceeds received on disposition of vehicles — 46 — 9,554 — 9,600 Investment in debt securities of Avis Budget Rental Car Funding (AESOP) LLC — related party — — — (61 ) — (61 ) — 45 — (2,044 ) — (1,999 ) Net cash provided by (used in) investing activities 100 106 24 (2,378 ) (56 ) (2,204 ) Financing activities Proceeds from long-term borrowings — 325 — 264 — 589 Payments on long-term borrowings — (406 ) (2 ) (194 ) — (602 ) Net change in short-term borrowings — — — (4 ) — (4 ) Debt financing fees — (5 ) — (4 ) — (9 ) Repurchases of common stock (210 ) — — — — (210 ) Intercompany loan borrowings (payments) — 264 — — (264 ) — Other, net 1 (192 ) (110 ) (185 ) 487 1 Net cash provided by (used in) financing activities exclusive of vehicle programs (209 ) (14 ) (112 ) (123 ) 223 (235 ) Vehicle programs: Proceeds from borrowings — — — 17,212 — 17,212 Payments on borrowings — (1 ) (9 ) (17,259 ) — (17,269 ) Debt financing fees — — — (16 ) — (16 ) — (1 ) (9 ) (63 ) — (73 ) Net cash provided by (used in) financing activities (209 ) (15 ) (121 ) (186 ) 223 (308 ) Effect of changes in exchange rates on cash and cash equivalents, program and restricted cash — — — 45 — 45 Net increase in cash and cash equivalents, program and restricted cash 1 2 — 178 — 181 Cash and cash equivalents, program and restricted cash, beginning of period 3 12 — 705 — 720 Cash and cash equivalents, program and restricted cash, end of period $ 4 $ 14 $ — $ 883 $ — $ 901 | For the Year Ended December 31, 2016 Parent Subsidiary Issuers Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Net cash provided by (used in) operating activities $ 279 $ (10 ) $ 80 $ 2,633 $ (342 ) $ 2,640 Investing activities Property and equipment additions — (32 ) (89 ) (69 ) — (190 ) Proceeds received on asset sales — 7 4 8 — 19 Net assets acquired (net of cash acquired) — — (4 ) (51 ) — (55 ) Intercompany loan receipts (advances) — — 28 (316 ) 288 — Other, net 118 (1 ) — 2 (118 ) 1 Net cash provided by (used in) investing activities exclusive of vehicle programs 118 (26 ) (61 ) (426 ) 170 (225 ) Vehicle programs: Investment in vehicles — (9 ) (4 ) (12,448 ) — (12,461 ) Proceeds received on disposition of vehicles — 31 — 10,473 — 10,504 — 22 (4 ) (1,975 ) — (1,957 ) Net cash provided by (used in) investing activities 118 (4 ) (65 ) (2,401 ) 170 (2,182 ) Financing activities Proceeds from long-term borrowings — 557 — 337 — 894 Payments on long-term borrowings — (525 ) (5 ) (317 ) — (847 ) Net change in short-term borrowings — — — 4 — 4 Debt financing fees — (15 ) — (5 ) — (20 ) Repurchases of common stock (398 ) — — — — (398 ) Intercompany loan borrowings (payments) — 316 — (28 ) (288 ) — Other, net — (385 ) — (75 ) 460 — Net cash provided by (used in) financing activities exclusive of vehicle programs (398 ) (52 ) (5 ) (84 ) 172 (367 ) Vehicle programs: Proceeds from borrowings — 8 — 15,761 — 15,769 Payments on borrowings — — (9 ) (15,817 ) — (15,826 ) Debt financing fees — — (1 ) (24 ) — (25 ) — 8 (10 ) (80 ) — (82 ) Net cash provided by (used in) financing activities (398 ) (44 ) (15 ) (164 ) 172 (449 ) Effect of changes in exchange rates on cash and cash equivalents, program and restricted cash — — — (6 ) — (6 ) Net increase (decrease) in cash and cash equivalents, program and restricted cash (1 ) (58 ) — 62 — 3 Cash and cash equivalents, program and restricted cash, beginning of period 4 70 — 643 — 717 Cash and cash equivalents, program and restricted cash, end of period $ 3 $ 12 $ — $ 705 $ — $ 720 | For the Year Ended December 31, 2015 Parent Subsidiary Issuers Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Net cash provided by (used in) operating activities $ 103 $ 249 $ 146 $ 2,204 $ (75 ) $ 2,627 Investing activities Property and equipment additions — (26 ) (98 ) (75 ) — (199 ) Proceeds received on asset sales — 7 1 7 — 15 Net assets acquired (net of cash acquired) — (8 ) (9 ) (239 ) — (256 ) Intercompany loan receipts (advances) — (30 ) (96 ) — 126 — Other, net 334 (127 ) 1 5 (210 ) 3 Net cash provided by (used in) investing activities exclusive of vehicle programs 334 (184 ) (201 ) (302 ) (84 ) (437 ) Vehicle programs: Investment in vehicles — (1 ) (2 ) (11,925 ) — (11,928 ) Proceeds received on disposition of vehicles — 19 — 9,661 — 9,680 — 18 (2 ) (2,264 ) — (2,248 ) Net cash provided by (used in) investing activities 334 (166 ) (203 ) (2,566 ) (84 ) (2,685 ) Financing activities Proceeds from long-term borrowings — 375 — 2 — 377 Payments on long-term borrowings — (256 ) (4 ) (41 ) — (301 ) Net change in short-term borrowings — — — (22 ) — (22 ) Debt financing fees — (7 ) — — — (7 ) Repurchases of common stock (436 ) — — — — (436 ) Intercompany loan borrowings (payments) — — — 126 (126 ) — Other, net 1 (335 ) 70 (28 ) 285 (7 ) Net cash provided by (used in) financing activities exclusive of vehicle programs (435 ) (223 ) 66 37 159 (396 ) Vehicle programs: Proceeds from borrowings — — — 14,138 — 14,138 Payments on borrowings — — (9 ) (13,639 ) — (13,648 ) Debt financing fees — — — (22 ) — (22 ) — — (9 ) 477 — 468 Net cash provided by (used in) financing activities (435 ) (223 ) 57 514 159 72 Effect of changes in exchange rates on cash and cash equivalents, program and restricted cash — — — (50 ) — (50 ) Net increase (decrease) in cash and cash equivalents, program and restricted cash 2 (140 ) — 102 — (36 ) Cash and cash equivalents, program and restricted cash, beginning of period 2 210 — 541 — 753 Cash and cash equivalents, program and restricted cash, end of period $ 4 $ 70 $ — $ 643 $ — $ 717 |
Guarantor and Non-Guarantor C53
Guarantor and Non-Guarantor Consolidating Financial Statements Cash Flows reconciliation GNG (2016-18) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Cash Flows reconciliation GNG (2016-18) [Abstract] | |
Cash Flows reconciliation (2016-18) [Table Text Block] | The following tables provide the impact of adoption of ASU 2016-18 on the Company’s Consolidating Condensed Statements of Cash Flows for the years ended December 31, 2016 and 2015. Year Ended December 31, 2016 As Previously Reported Non-Guarantor Effect of Change As Adjusted Non-Guarantor As Previously Reported Total Effect of Change As Adjusted Total Decrease in program cash $ 31 $ (31 ) $ — $ 31 $ (31 ) $ — Other, net 4 (2 ) 2 3 (2 ) 1 Net cash used in investing activities (2,368 ) (33 ) (2,401 ) (2,149 ) (33 ) (2,182 ) Effect of changes in exchange rates on cash and cash equivalents, program and restricted cash (4 ) (2 ) (6 ) (4 ) (2 ) (6 ) Net increase in cash and cash equivalents, program and restricted cash 97 (35 ) 62 38 (35 ) 3 Cash and cash equivalents, program and restricted cash, beginning of period 378 265 643 452 265 717 Cash and cash equivalents, program and restricted cash, end of period $ 475 $ 230 $ 705 $ 490 $ 230 $ 720 Year Ended December 31, 2015 As Previously Reported Non-Guarantor Effect of Change As Adjusted Non-Guarantor As Previously Reported Total Effect of Change As Adjusted Total Increase in program cash $ (148 ) $ 148 $ — $ (148 ) $ 148 $ — Other, net 8 (3 ) 5 6 (3 ) 3 Net cash used in investing activities (2,711 ) 145 (2,566 ) (2,830 ) 145 (2,685 ) Effect of changes in exchange rates on cash and cash equivalents, program and restricted cash (41 ) (9 ) (50 ) (41 ) (9 ) (50 ) Net increase (decrease) in cash and cash equivalents, program and restricted cash (34 ) 136 102 (172 ) 136 (36 ) Cash and cash equivalents, program and restricted cash, beginning of period 412 129 541 624 129 753 Cash and cash equivalents, program and restricted cash, end of period $ 378 $ 265 $ 643 $ 452 $ 265 $ 717 |
Guarantor and Non-Guarantor C54
Guarantor and Non-Guarantor Consolidating Financial Statements Reconciliation of cash and cash equivalents GNG (2016-18) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Reconciliation of cash and cash equivalents GNG (2016-18) [Abstract] | |
Reconciliation of cash and cash equivalents GNG (2016-18) [Table Text Block] | The following table provides a reconciliation of the cash and cash equivalents, program and restricted cash reported within the Consolidating Condensed Balance Sheets to the amounts shown in the Consolidating Condensed Statements of Cash Flows. As of December 31, 2017 2016 Non-Guarantor Total Non-Guarantor Total Cash and cash equivalents $ 593 $ 611 $ 475 $ 490 Program cash 283 283 225 225 Restricted cash (a) 7 7 5 5 Total cash and cash equivalents, program and restricted cash $ 883 $ 901 $ 705 $ 720 _________ (a) Included within other current assets. |
Selected Quarterly Financial 55
Selected Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Selected Quarterly Financial Data | Provided below are selected unaudited quarterly financial data for 2017 and 2016 . The earnings per share information is calculated independently for each quarter based on the weighted average number of common stock and common stock equivalents outstanding, which may fluctuate, based on quarterly income levels and market prices. Therefore and due to the seasonality of the Company’s earnings, the sum of the quarters’ per share information may not equal the annual amount presented on the Consolidated Statements of Operations. 2017 First Second Third Fourth (a) Net revenues $ 1,839 $ 2,238 $ 2,752 $ 2,019 Net income (loss) (107 ) 3 245 220 Per share information: Basic Net income (loss) $ (1.25 ) $ 0.04 $ 2.96 $ 2.70 Weighted average shares 85.7 84.0 82.6 81.3 Diluted Net income (loss) $ (1.25 ) $ 0.04 $ 2.91 $ 2.65 Weighted average shares 85.7 85.2 84.0 82.7 2016 First Second Third Fourth Net revenues $ 1,881 $ 2,243 $ 2,656 $ 1,879 Net income (loss) (51 ) 36 209 (31 ) Per share information: Basic Net income (loss) $ (0.53 ) $ 0.39 $ 2.32 $ (0.35 ) Weighted average shares 96.3 93.9 90.4 87.4 Diluted Net income (loss) $ (0.53 ) $ 0.38 $ 2.28 $ (0.35 ) Weighted average shares 96.3 95.1 91.8 87.4 |
Summary of Significant Accoun56
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Summary Of Significant Accounting Policies [Line Items] | ||||
Currency translation adjustment | $ 71 | $ (39) | $ (80) | $ 51 |
Net carrying value of software developed | 196 | 184 | ||
Vehicle interest income | 8 | 18 | 13 | |
Advertising expense | 111 | 127 | 123 | |
Investments in joint ventures | 32 | 36 | ||
Retained risks of liability to third parties | 422 | 437 | ||
Workers compensation liabilities | 66 | 71 | ||
Business Acquisition, Transaction Costs | 18 | |||
Business Combination, Contingent Consideration, Liability | 9 | |||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | 13 | |||
Business Combination, Contingent Consideration, Liability, Favorable Currency Exchange Rate Movements | 4 | |||
Gain or loss of currency transactions | (3) | 6 | 11 | |
Employee Service Share Based Compensation Incremental Tax Benefit To Be Realized From Exercise Of Stock Awards | 56 | |||
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | $ 11 | $ 43 | ||
Increase (Decrease) in Customer Loyalty Program Liability | 50 | |||
Increase (Decrease) in Customer Loyalty Program Liability (Net of Tax) | $ 40 |
Schedule of Estimated Useful Li
Schedule of Estimated Useful Lives (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
Buildings | |
Property And Equipment, Net [Line Items] | |
Property, Plant and Equipment, Useful Life | 30 years |
Furniture, Fixtures & Equipment | Minimum [Member] | |
Property And Equipment, Net [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Furniture, Fixtures & Equipment | Maximum | |
Property And Equipment, Net [Line Items] | |
Property, Plant and Equipment, Useful Life | 10 years |
Capitalized Software | Minimum [Member] | |
Property And Equipment, Net [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Capitalized Software | Maximum | |
Property And Equipment, Net [Line Items] | |
Property, Plant and Equipment, Useful Life | 7 years |
Buses And Support Vehicles | Minimum [Member] | |
Property And Equipment, Net [Line Items] | |
Property, Plant and Equipment, Useful Life | 4 years |
Buses And Support Vehicles | Maximum | |
Property And Equipment, Net [Line Items] | |
Property, Plant and Equipment, Useful Life | 15 years |
Summary of Significant Accoun58
Summary of Significant Accounting Policies Restricted Cash Adjustment (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Decrease Increase In Program Cash | $ 0 | $ 0 | ||
Cash and cash equivalents | $ 611 | 490 | ||
Payments for (Proceeds from) Other Investing Activities | 5 | 1 | 3 | |
Net Cash Provided by (Used in) Investing Activities | (2,204) | (2,182) | (2,685) | |
Effect of changes in exchange rates on cash and cash equivalents, program and restricted cash | 45 | (6) | (50) | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | 181 | 3 | (36) | |
Program cash | 283 | 225 | ||
Restricted Cash and Cash Equivalents | 7 | 5 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 901 | 720 | 717 | $ 753 |
Scenario, Previously Reported [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Decrease Increase In Program Cash | 31 | (148) | ||
Payments for (Proceeds from) Other Investing Activities | 3 | 6 | ||
Net Cash Provided by (Used in) Investing Activities | (2,149) | (2,830) | ||
Effect of changes in exchange rates on cash and cash equivalents, program and restricted cash | (4) | (41) | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | 38 | (172) | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 490 | 452 | 624 | |
Restatement Adjustment [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Decrease Increase In Program Cash | (31) | 148 | ||
Payments for (Proceeds from) Other Investing Activities | (2) | (3) | ||
Net Cash Provided by (Used in) Investing Activities | (33) | 145 | ||
Effect of changes in exchange rates on cash and cash equivalents, program and restricted cash | (2) | (9) | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | (35) | 136 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 230 | $ 265 | $ 129 |
Computation of Basic and Dilute
Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |||||||||||
Net income for basic and diluted EPS | $ 361 | $ 163 | $ 313 | ||||||||
Basic weighted average shares outstanding | 81.3 | 82.6 | 84 | 85.7 | 87.4 | 90.4 | 93.9 | 96.3 | 83.4 | 92 | 103.4 |
Options, warrants and non-vested stock | 1.4 | 1.3 | 1.6 | ||||||||
Diluted weighted average shares outstanding | 82.7 | 84 | 85.2 | 85.7 | 87.4 | 91.8 | 95.1 | 96.3 | 84.8 | 93.3 | 105 |
Earnings (loss) per share: | |||||||||||
Basic | $ 2.70 | $ 2.96 | $ 0.04 | $ (1.25) | $ (0.35) | $ 2.32 | $ 0.39 | $ (0.53) | $ 4.32 | $ 1.78 | $ 3.02 |
Diluted | $ 2.65 | $ 2.91 | $ 0.04 | $ (1.25) | $ (0.35) | $ 2.28 | $ 0.38 | $ (0.53) | $ 4.25 | $ 1.75 | $ 2.98 |
Outstanding Common Stock Equiva
Outstanding Common Stock Equivalents That Were Anti-Dilutive (Detail) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Restricted Stock [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive shares | 0.5 | 0.2 | 0.1 |
Outstanding Common Stock Equi61
Outstanding Common Stock Equivalents That Were Anti-Dilutive Tickmarks (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |||
Anti-dilutive Non-Vested Stock Weighted Average Grant Date Fair Value | $ 38.40 | $ 52.07 | $ 61.15 |
Restructuring - Additional Info
Restructuring - Additional Information (Detail) $ in Millions | 12 Months Ended | 36 Months Ended | 48 Months Ended | |||
Dec. 31, 2017USD ($)Employee | Dec. 31, 2016USD ($)Employee | Dec. 31, 2015USD ($)Employee | Dec. 31, 2014Employee | Dec. 31, 2017USD ($)Employee | Dec. 31, 2017USD ($)Employee | |
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Charges | $ 63 | $ 29 | $ 18 | |||
2018 Truck Restructuring [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Charges | $ 5 | |||||
Restructuring and Related Cost, Expected Number of Positions Eliminated | Employee | 25 | |||||
Restructuring and Related Cost, Number of Positions Eliminated | Employee | 20 | |||||
Restructuring and Related Cost, Expected Cost | $ 3 | $ 3 | $ 3 | |||
2015 Acquisition Integration [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Charges | $ 9 | $ 9 | ||||
Restructuring and Related Cost, Expected Number of Positions Eliminated | Employee | 115 | 180 | ||||
Restructuring and Related Cost, Number of Positions Eliminated | Employee | 260 | |||||
T17 Restructuring [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Charges | $ 35 | |||||
Restructuring and Related Cost, Expected Number of Positions Eliminated | Employee | 680 | |||||
Restructuring and Related Cost, Number of Positions Eliminated | Employee | 665 | |||||
2014 T15 Restructuring [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Charges | $ 21 | $ 9 | ||||
Restructuring and Related Cost, Expected Number of Positions Eliminated | Employee | 615 | 325 | ||||
Restructuring and Related Cost, Number of Positions Eliminated | Employee | 990 | |||||
2011 Avis Europe Restructuring [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Charges | $ (1) | |||||
Restructuring and Related Cost, Expected Number of Positions Eliminated | Employee | 230 | |||||
Americas | 2018 Truck Restructuring [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Charges | $ 5 | |||||
Americas | 2015 Acquisition Integration [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Charges | 0 | $ 1 | ||||
Americas | T17 Restructuring [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Charges | 25 | |||||
Americas | 2014 T15 Restructuring [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Charges | 11 | 6 | ||||
Americas | 2011 Avis Europe Restructuring [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Charges | 0 | |||||
International | 2018 Truck Restructuring [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Charges | 0 | |||||
International | 2015 Acquisition Integration [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Charges | 9 | 8 | ||||
International | T17 Restructuring [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Charges | $ 10 | |||||
International | 2014 T15 Restructuring [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Charges | 10 | $ 3 | ||||
International | 2011 Avis Europe Restructuring [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Charges | $ (1) |
Summary of Changes to Restructu
Summary of Changes to Restructuring-Related Liabilities (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Restructuring Cost and Reserve [Line Items] | |||
Balance, beginning | $ 6 | $ 11 | $ 17 |
Restructuring expense | (63) | (29) | (18) |
Balance, ending | 4 | 6 | 11 |
Americas | |||
Restructuring Cost and Reserve [Line Items] | |||
Balance, beginning | 1 | 1 | 4 |
Balance, ending | 1 | 1 | 1 |
International | |||
Restructuring Cost and Reserve [Line Items] | |||
Balance, beginning | 5 | 10 | 13 |
Balance, ending | 3 | 5 | 10 |
Employee Severance [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Balance, beginning | 5 | 10 | 14 |
Balance, ending | 4 | 5 | 10 |
Facility Closing [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Balance, beginning | 1 | 1 | 3 |
Balance, ending | 0 | 1 | 1 |
Other Restructuring [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Balance, beginning | 0 | 0 | 0 |
Balance, ending | 0 | 0 | 0 |
2011 Avis Europe Restructuring [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expense | 1 | ||
Cash payment/utilization | (1) | (9) | |
2011 Avis Europe Restructuring [Member] | Americas | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expense | 0 | ||
Cash payment/utilization | 0 | (1) | |
2011 Avis Europe Restructuring [Member] | International | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expense | 1 | ||
Cash payment/utilization | (1) | (8) | |
2011 Avis Europe Restructuring [Member] | Employee Severance [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expense | 1 | ||
Cash payment/utilization | (1) | (7) | |
2011 Avis Europe Restructuring [Member] | Facility Closing [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expense | 0 | ||
Cash payment/utilization | 0 | (2) | |
2011 Avis Europe Restructuring [Member] | Other Restructuring [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expense | 0 | ||
Cash payment/utilization | 0 | 0 | |
2018 Truck Restructuring [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expense | (5) | ||
Cash payment/utilization | (5) | ||
2018 Truck Restructuring [Member] | Americas | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expense | (5) | ||
Cash payment/utilization | (5) | ||
2018 Truck Restructuring [Member] | International | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expense | 0 | ||
Cash payment/utilization | 0 | ||
2018 Truck Restructuring [Member] | Employee Severance [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expense | (1) | ||
Cash payment/utilization | (1) | ||
2018 Truck Restructuring [Member] | Facility Closing [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expense | 0 | ||
Cash payment/utilization | 0 | ||
2018 Truck Restructuring [Member] | Other Restructuring [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expense | (4) | ||
Cash payment/utilization | (4) | ||
T17 Restructuring [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expense | (35) | ||
Cash payment/utilization | (33) | ||
T17 Restructuring [Member] | Americas | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expense | (25) | ||
Cash payment/utilization | (24) | ||
T17 Restructuring [Member] | International | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expense | (10) | ||
Cash payment/utilization | (9) | ||
T17 Restructuring [Member] | Employee Severance [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expense | (20) | ||
Cash payment/utilization | (17) | ||
T17 Restructuring [Member] | Facility Closing [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expense | 0 | ||
Cash payment/utilization | (1) | ||
T17 Restructuring [Member] | Other Restructuring [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expense | (15) | ||
Cash payment/utilization | (15) | ||
2014 T15 Restructuring [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expense | (21) | (9) | |
Cash payment/utilization | (3) | (18) | (12) |
2014 T15 Restructuring [Member] | Americas | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expense | (11) | (6) | |
Cash payment/utilization | (1) | (11) | (8) |
2014 T15 Restructuring [Member] | International | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expense | (10) | (3) | |
Cash payment/utilization | (2) | (7) | (4) |
2014 T15 Restructuring [Member] | Employee Severance [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expense | (15) | (9) | |
Cash payment/utilization | (3) | (12) | (12) |
2014 T15 Restructuring [Member] | Facility Closing [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expense | (1) | 0 | |
Cash payment/utilization | 0 | (1) | 0 |
2014 T15 Restructuring [Member] | Other Restructuring [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expense | (5) | 0 | |
Cash payment/utilization | 0 | (5) | 0 |
2015 Acquisition Integration [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expense | (9) | (9) | |
Cash payment/utilization | (1) | (15) | (3) |
2015 Acquisition Integration [Member] | Americas | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expense | 0 | (1) | |
Cash payment/utilization | 0 | 0 | (1) |
2015 Acquisition Integration [Member] | International | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expense | (9) | (8) | |
Cash payment/utilization | (1) | (15) | (2) |
2015 Acquisition Integration [Member] | Employee Severance [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expense | (9) | (9) | |
Cash payment/utilization | (1) | (15) | (3) |
2015 Acquisition Integration [Member] | Facility Closing [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expense | 0 | 0 | |
Cash payment/utilization | 0 | 0 | 0 |
2015 Acquisition Integration [Member] | Other Restructuring [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expense | 0 | 0 | |
Cash payment/utilization | $ 0 | $ 0 | $ 0 |
Restructuring Restructuring Oth
Restructuring Restructuring Other Related Charges (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($)Employee | |
Other Related Charges [Abstract] | |
Other Nonrecurring Expense | $ 7 |
Share-based Compensation Arrangement by Share-based Payment Award Accelerated Compensation Cost | 2 |
Charges related to voluntary termination program | $ 16 |
Charges related to voluntary termination program, Expected Number of Positions Eliminated | Employee | 355 |
Charges related to voluntary termination program, Number of Positions Eliminated | Employee | 340 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |||||
Nov. 30, 2017 | Dec. 31, 2016 | Apr. 30, 2015 | Aug. 31, 2013 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Business Acquisition [Line Items] | |||||||
Commitments and Contingencies | |||||||
Impairment | 23 | 21 | $ 68 | ||||
Goodwill | $ 1,007 | 1,073 | $ 1,007 | $ 973 | |||
2017 Avis and Budget Licensees [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business Combination, Consideration Transferred | 9 | ||||||
Business Combination, Consideration Transferred, Other | $ 4 | ||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 3 years | ||||||
Impairment | $ 2 | ||||||
2017 Avis and Budget Licensees [Member] | Licensing Agreements [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Finite-lived Intangible Assets Acquired | 12 | ||||||
ACL Hire Limited [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business Acquisition, Effective Date of Acquisition | Nov. 1, 2017 | ||||||
Business Combination, Consideration Transferred | 5 | ||||||
Commitments and Contingencies | 2 | ||||||
Goodwill | $ 5 | ||||||
Maggiore Group [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business Acquisition, Effective Date of Acquisition | Apr. 1, 2015 | ||||||
Business Combination, Consideration Transferred | $ 160 | ||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 10 years | ||||||
Goodwill | $ 82 | ||||||
Maggiore Group [Member] | Other Intangible Assets [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Finite-lived Intangible Assets Acquired | 34 | ||||||
Maggiore Group [Member] | Customer Relationships [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Finite-lived Intangible Assets Acquired | 50 | ||||||
Maggiore Group [Member] | Licensing Agreements [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Finite-lived Intangible Assets Acquired | 11 | ||||||
Brazil [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business Acquisition, Effective Date of Acquisition | Apr. 1, 2015 | Aug. 1, 2013 | |||||
Goodwill | 77 | ||||||
Equity Method Investment, Ownership Percentage | 50.00% | 50.00% | |||||
Payments to Acquire Equity Method Investments | 8 | ||||||
Due to Related Parties | 46 | ||||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Loss | 8 | ||||||
France Cars [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business Acquisition, Effective Date of Acquisition | Dec. 1, 2016 | ||||||
Business Combination, Consideration Transferred | $ 45 | ||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 8 years | ||||||
Goodwill | $ 22 | $ 22 | |||||
France Cars [Member] | Other Intangible Assets [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Finite-lived Intangible Assets Acquired | 9 | ||||||
France Cars [Member] | Customer Relationships [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Finite-lived Intangible Assets Acquired | $ 6 | ||||||
Avis and Budget Licensees [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business Combination, Consideration Transferred | 62 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | $ 23 | ||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 8 years | ||||||
Goodwill | $ 29 | ||||||
Non Cash Charge On Unfavorable License Rights Reacquired With Acquisition With Subsidiaries | 25 | ||||||
Avis and Budget Licensees [Member] | Customer Relationships [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Finite-lived Intangible Assets Acquired | 12 | ||||||
Avis and Budget Licensees [Member] | Licensing Agreements [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Finite-lived Intangible Assets Acquired | $ 36 |
Schedule of Intangible Assets (
Schedule of Intangible Assets (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Finite And Indefinite Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 574 | $ 531 | |
Accumulated Amortization | 277 | 211 | |
Net Carrying Amount | 297 | 320 | |
Goodwill | 1,073 | 1,007 | $ 973 |
Licensing Agreements [Member] | |||
Finite And Indefinite Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 281 | 261 | |
Accumulated Amortization | 140 | 109 | |
Net Carrying Amount | 141 | 152 | |
Customer Relationships [Member] | |||
Finite And Indefinite Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 242 | 224 | |
Accumulated Amortization | 119 | 90 | |
Net Carrying Amount | 123 | 134 | |
Other Intangible Assets [Member] | |||
Finite And Indefinite Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 51 | 46 | |
Accumulated Amortization | 18 | 12 | |
Net Carrying Amount | 33 | 34 | |
Goodwill | |||
Finite And Indefinite Lived Intangible Assets [Line Items] | |||
Goodwill | 1,073 | 1,007 | |
Trademarks | |||
Finite And Indefinite Lived Intangible Assets [Line Items] | |||
Trademarks | 553 | $ 550 | |
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 2 | ||
Minimum [Member] | Licensing Agreements [Member] | |||
Finite And Indefinite Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 0 years | ||
Minimum [Member] | Customer Relationships [Member] | |||
Finite And Indefinite Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 3 years | ||
Minimum [Member] | Other Intangible Assets [Member] | |||
Finite And Indefinite Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 4 years | ||
Maximum | Licensing Agreements [Member] | |||
Finite And Indefinite Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 40 years | ||
Maximum | Customer Relationships [Member] | |||
Finite And Indefinite Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 20 years | ||
Maximum | Other Intangible Assets [Member] | |||
Finite And Indefinite Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 10 years | ||
Weighted Average [Member] | Licensing Agreements [Member] | |||
Finite And Indefinite Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 18 years | ||
Weighted Average [Member] | Customer Relationships [Member] | |||
Finite And Indefinite Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 12 years | ||
Weighted Average [Member] | Other Intangible Assets [Member] | |||
Finite And Indefinite Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 9 years |
Schedule of Intangible Assets A
Schedule of Intangible Assets Amortization Expense (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | $ 62 | $ 65 | $ 59 |
Licensing Agreements [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | 33 | 35 | 31 |
Customer Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | 24 | 23 | 21 |
Other Intangible Assets [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | $ 5 | $ 7 | $ 7 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) $ in Millions | Dec. 31, 2017USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Finite-Lived Intangible Assets, Amortization Expense, Next Rolling Twelve Months | $ 47 |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 42 |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 40 |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 30 |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | $ 24 |
Schedule of Goodwill (Detail)
Schedule of Goodwill (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill [Line Items] | |||
Gross goodwill | $ 3,091 | ||
Goodwill [Roll Forward] | |||
Goodwill | $ 1,007 | $ 973 | |
Goodwill, Impaired, Accumulated Impairment Loss | (2,118) | ||
Acquisition | 5 | 25 | |
Adjustments to the allocation of purchase price | 61 | 9 | |
Goodwill | 1,073 | 1,007 | |
Americas | |||
Goodwill [Line Items] | |||
Gross goodwill | 2,124 | ||
Goodwill [Roll Forward] | |||
Goodwill | 552 | 537 | |
Goodwill, Impaired, Accumulated Impairment Loss | 1,587 | ||
Acquisition | 0 | 2 | |
Adjustments to the allocation of purchase price | 0 | 13 | |
Goodwill | 552 | 552 | |
International | |||
Goodwill [Line Items] | |||
Gross goodwill | 967 | ||
Goodwill [Roll Forward] | |||
Goodwill | 455 | 436 | |
Goodwill, Impaired, Accumulated Impairment Loss | $ 531 | ||
Acquisition | 5 | 23 | |
Adjustments to the allocation of purchase price | 61 | (4) | |
Goodwill | $ 521 | $ 455 |
Components of Company's Vehicle
Components of Company's Vehicles (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure Components Of Companys Vehicles [Abstract] | ||
Rental vehicles | $ 11,652 | $ 10,937 |
Less: Accumulated depreciation | (1,652) | (1,454) |
Rental Vehicles Net, Total | 10,000 | 9,483 |
Vehicles held for sale | 626 | 981 |
Vehicles, net | $ 10,626 | $ 10,464 |
Components Of Vehicle Depreciat
Components Of Vehicle Depreciation And Lease Charges (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Vehicle Depreciation and Lease Charges, Net [Line Items] | |||
Depreciation expense | $ 1,947 | $ 1,877 | $ 1,837 |
Lease charges | 222 | 180 | 156 |
(Gain) loss on sale of vehicles, net | 52 | (10) | (60) |
Vehicle depreciation and lease charges, net | 2,221 | 2,047 | 1,933 |
Accounts Payable, Other, Current | 346 | 321 | 269 |
Receivables due from former subsidiaries | $ 545 | $ 520 | $ 433 |
Provision for (Benefit from) In
Provision for (Benefit from) Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current | |||
Federal | $ 0 | $ (1) | $ (32) |
State | 5 | 3 | 3 |
Foreign | 37 | 63 | 40 |
Current income tax provision (benefit) | 42 | 65 | 11 |
Deferred | |||
Federal | (205) | 51 | 45 |
State | (5) | 5 | (1) |
Foreign | 18 | (5) | 14 |
Deferred income tax provision | (192) | 51 | 58 |
Provision for (benefit from) income taxes | $ (150) | $ 116 | $ 69 |
Pretax Income (Loss) for Domest
Pretax Income (Loss) for Domestic and Foreign Operations (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 17 | $ 127 | $ 258 |
Foreign | 194 | 152 | 124 |
Income before income taxes | $ 211 | $ 279 | $ 382 |
Income Taxes Pretax Income (Los
Income Taxes Pretax Income (Loss) for Domestic and Foreign Operations Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Gains (Losses) on Extinguishment of Debt | $ (3) | $ (27) | $ (23) |
Deferred Income Tax Assets And
Deferred Income Tax Assets And Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred Income Tax Assets And Liabilities [Line Items] | ||
Net tax loss carryforwards | $ 1,104 | $ 1,587 |
Accrued liabilities and deferred income | 216 | 281 |
Tax credits | 24 | 62 |
Depreciation and amortization | 4 | 2 |
Acquisition and integration-related liabilities | 2 | 5 |
Provision for doubtful accounts | 8 | 7 |
Other | 48 | 52 |
Valuation allowance | (331) | (357) |
Deferred income tax assets | 1,075 | 1,639 |
Depreciation and amortization | 121 | 112 |
Deferred Tax Liabilities, Prepaid Expenses | 20 | 32 |
Other | 3 | 2 |
Non-current deferred income tax liabilities | 144 | 146 |
Non-current net deferred income tax assets | 931 | 1,493 |
Deferred Income Tax Assets and Liabilities Additional Information (Detail) [Abstract] | ||
Deferred Tax Assets, Valuation Allowance | 331 | 357 |
Deferred Tax Assets Operating Loss Carryforward With Valuation Against It | 302 | 289 |
Deferred Tax Assets, Tax Credit Carryforwards, Foreign | 39 | |
Deferred Tax Assets State And Local | 29 | 29 |
Vehicle Programs | ||
Deferred Income Tax Assets And Liabilities [Line Items] | ||
Depreciation and amortization | 58 | 52 |
Depreciation and amortization | 1,652 | 2,481 |
Deferred Tax Liabilities, Net | $ 1,594 | $ 2,429 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Line Items] | |||
Deferred income taxes | $ 192 | $ (51) | $ (58) |
Federal net operating loss carryforwards net of valuation allowances | 19 | ||
Foreign net operating loss carryforwards | 889 | ||
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities | 0 | $ 0 | $ 1 |
Deferred Tax Liabilities, Undistributed Foreign Earnings | 1,300 | ||
Internal Revenue Service (IRS) | |||
Income Tax Disclosure [Line Items] | |||
Federal net operating loss carryforwards net of valuation allowances | $ 3,200 | ||
Internal Revenue Service (IRS) | Maximum | |||
Income Tax Disclosure [Line Items] | |||
Operating loss carryforwards expiration period | Jan. 1, 2031 | ||
Other Tax [Member] | |||
Income Tax Disclosure [Line Items] | |||
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities | $ 98 | ||
Provision adjustment due to corporate tax rate change [Member] | |||
Income Tax Disclosure [Line Items] | |||
Deferred income taxes | 317 | ||
Provision adjustment due to anticipated repatriation of foreign earnings [Member] | |||
Income Tax Disclosure [Line Items] | |||
Deferred income taxes | $ (104) |
Reconciliation of U.S Federal I
Reconciliation of U.S Federal Income Tax Statutory Rate and Effective Income Tax Rate (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Line Items] | |||
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities | $ 0 | $ 0 | $ 1 |
Changes in valuation allowances | (4.70%) | (0.20%) | (0.60%) |
U.S. federal statutory rate | 35.00% | 35.00% | 35.00% |
State and local income taxes, net of federal tax benefits | 3.80% | 2.00% | 2.80% |
Taxes on foreign operations at rates different than statutory U.S. federal rates | (3.60%) | 3.10% | 3.70% |
Resolution of prior years' examination issues | 0.00% | 0.00% | (25.60%) |
Effective Income Tax Rate Reconciliation, Stock-based Compensation, Percent | (3.40%) | 0.00% | 0.00% |
Non-deductible transaction-related costs | 0.00% | 0.00% | 0.90% |
Effective Income Tax Rate Reconciliation, 2017 Tax Reform Act Impact, Percent, Total | (100.80%) | 0.00% | 0.00% |
Other non-deductible expenses | 2.20% | 1.70% | 1.80% |
Other | 0.40% | 0.00% | 0.10% |
Effective Income Tax Rate, Continuing Operations, Total | (71.10%) | 41.60% | 18.10% |
Other Tax [Member] | |||
Income Tax Disclosure [Line Items] | |||
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities | $ 98 |
Changes in Unrecognized Tax Ben
Changes in Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Beginning Balance | $ 59 | $ 56 | $ 63 |
Additions based on tax positions related to the current year | 6 | 3 | 6 |
Additions for tax positions for prior years | 9 | 3 | 3 |
Reductions for tax positions for prior years | (10) | (3) | (14) |
Settlements | 0 | 0 | (1) |
Statute of limitations | (1) | 0 | (1) |
Ending Balance | $ 63 | $ 59 | $ 56 |
Unrecognized Tax Benefits (Deta
Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Income Tax Disclosure [Abstract] | ||
Unrecognized tax benefits, non-current income taxes payable | $ 46 | $ 40 |
Unrecognized Tax Benefits, Interest on Income Taxes Accrued | $ 26 | $ 29 |
Unrecognized Tax Benefits Addit
Unrecognized Tax Benefits Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Income Taxes [Line Items] | ||||
Unrecognized tax benefits, non-current income taxes payable | $ 46 | $ 40 | ||
Unrecognized Tax Benefits, Interest on Income Taxes Accrued | 26 | 29 | ||
Unrecognized Tax Benefits | 63 | 59 | $ 56 | $ 63 |
Non Avis Budget Car Rental Tax Contingencies | ||||
Income Taxes [Line Items] | ||||
Unrecognized Tax Benefits | $ 13 | $ 15 |
Schedule of Other Current Asset
Schedule of Other Current Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure Schedule Of Other Current Assets [Abstract] | ||
Prepaid expenses | $ 196 | $ 212 |
Sales and use tax | 174 | 153 |
Other | 163 | 154 |
Total other current assets | $ 533 | $ 519 |
Schedule of Property and Equipm
Schedule of Property and Equipment Net (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Abstract] | ||
Land | $ 49 | $ 47 |
Buildings and leasehold improvements | 626 | 597 |
Capitalized software | 583 | 524 |
Furniture, fixtures and equipment | 387 | 354 |
Buses and support vehicles | 93 | 91 |
Projects in process | 118 | 99 |
Property and Equipment, gross | 1,856 | 1,712 |
Less: Accumulated depreciation and amortization | (1,152) | (1,027) |
Property, Plant and Equipment, Net, Total | $ 704 | $ 685 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation and amortization expense | $ 197 | $ 188 | $ 159 |
Amortization expense relating to capitalized computer software | $ 95 | $ 87 | $ 61 |
Schedule of Accounts Payable an
Schedule of Accounts Payable and Other Current Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Accounts Payable and Other Current Liabilities [Abstract] | ||
Accounts payable | $ 359 | $ 343 |
Accrued sales and use taxes | 218 | 206 |
Accrued payroll and related | 176 | 173 |
Public liability and property damage insurance liabilities – current | 145 | 141 |
Deferred revenue – current | 135 | 114 |
Accrued commissions | 117 | 86 |
Accrued insurance | 103 | 70 |
Other | 366 | 355 |
Accounts payable and other current liabilities | $ 1,619 | $ 1,488 |
Schedule of Long-Term Debt (Det
Schedule of Long-Term Debt (Detail) € in Millions | 12 Months Ended | |||||||||
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2014USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2017EUR (€) | Mar. 31, 2017USD ($) | Jun. 30, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014EUR (€) | Dec. 31, 2013EUR (€) | |
Debt Instrument [Line Items] | ||||||||||
Uncommitted credit facilities | $ 2,000,000 | $ 5,000,000 | ||||||||
Other | 49,000,000 | 57,000,000 | ||||||||
Total | 3,645,000,000 | |||||||||
Less: Short-term debt and current portion of long-term debt | 26,000,000 | 279,000,000 | ||||||||
Long-term debt | $ 3,573,000,000 | 3,244,000,000 | ||||||||
Senior Notes [Member] | Floating Rate Senior Notes Due December 2017 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.75% | |||||||||
Maturity Dates | December 2017 | |||||||||
Long-term Debt, Gross | $ 0 | $ 249,000,000 | ||||||||
Percentage Of Margin Aggregate Interest Rate | 3.68% | |||||||||
Senior Notes [Member] | 9 3/4% Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument interest percentage | 3.75% | 3.75% | ||||||||
Debt Instrument, Repurchased Face Amount | $ 223,000,000 | |||||||||
Senior Notes [Member] | 6% Euro-Denominated Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument interest percentage | 6.00% | 6.00% | ||||||||
Debt Instrument, Face Amount | € | € 200 | € 250 | ||||||||
Debt Instrument, Unamortized Premium | $ 1.0675 | |||||||||
Debt Instrument, Repurchased Face Amount | $ 275,000,000 | € 175 | ||||||||
Maturity Dates | March 2,021 | |||||||||
Long-term Debt, Gross | $ 0 | 194,000,000 | ||||||||
Proceeds from Issuance of Debt | $ 295,000,000 | |||||||||
Percentage Of Margin Aggregate Interest Rate | 4.85% | |||||||||
Debt Instrument, Repurchase Amount | $ 287,000,000 | $ 180,000,000 | ||||||||
Senior Notes [Member] | Five and One over Eight Senior Notes [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument interest percentage | 5.125% | 5.125% | ||||||||
Debt Instrument, Face Amount | $ 400,000,000 | |||||||||
Maturity Dates | June 2,022 | |||||||||
Long-term Debt, Gross | $ 400,000,000 | $ 400,000,000 | ||||||||
Senior Notes [Member] | 5 1/2% Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument interest percentage | 5.50% | 5.50% | ||||||||
Debt Instrument, Face Amount | 175,000,000 | |||||||||
Maturity Dates | April 2,023 | |||||||||
Long-term Debt, Gross | $ 675,000,000 | $ 675,000,000 | ||||||||
Debt Instrument, Unamortized Discount | 0.99625 | |||||||||
Senior Notes [Member] | Four and One over Eight Euro-Denominated Senior Notes [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument interest percentage | 4.125% | 4.125% | ||||||||
Debt Instrument, Face Amount | $ 300,000,000 | |||||||||
Maturity Dates | November 2,024 | |||||||||
Long-term Debt, Gross | $ 360,000,000 | $ 316,000,000 | ||||||||
Senior Notes [Member] | Six And Three Over Eight Senior Notes [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument interest percentage | 6.375% | 6.375% | ||||||||
Debt Instrument, Face Amount | $ 350,000,000 | |||||||||
Maturity Dates | April 2,024 | |||||||||
Long-term Debt, Gross | $ 350,000,000 | $ 350,000,000 | ||||||||
Senior Notes [Member] | Five And One Over Four Senior Notes [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument interest percentage | 5.25% | 5.25% | ||||||||
Maturity Dates | March 2,025 | |||||||||
Long-term Debt, Gross | $ 375,000,000 | $ 375,000,000 | ||||||||
Senior Notes [Member] | Four and One over Two Euro-Denominated Senior Notes [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument interest percentage | 4.50% | 4.50% | ||||||||
Debt Instrument, Face Amount | $ 250,000,000 | |||||||||
Maturity Dates | May 2,025 | |||||||||
Long-term Debt, Gross | $ 300,000,000 | $ 0 | ||||||||
Senior Notes [Member] | Eight And One Over Four Senior Notes [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument interest percentage | 8.25% | 8.25% | ||||||||
Debt Instrument, Repurchased Face Amount | 292,000,000 | |||||||||
Debt Instrument, Repurchase Amount | $ 395,000,000 | |||||||||
Senior Notes [Member] | Four And Seven Over Eight Senior Notes [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument interest percentage | 4.875% | 4.875% | ||||||||
Debt Instrument, Repurchased Face Amount | $ 300,000,000 | |||||||||
Loans Payable [Member] | Floating Rate Term Loan Due March 2019 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.25% | |||||||||
Maturity Dates | March 2,019 | |||||||||
Long-term Debt, Gross | $ 0 | $ 144,000,000 | $ 970,000,000 | |||||||
Percentage Of Margin Aggregate Interest Rate | 3.25% | |||||||||
Loans Payable [Member] | Floating Rate Term Loan Due March Two Thousand Twenty Two [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Face Amount | $ 1,100,000,000 | |||||||||
Maturity Dates | March 2,022 | |||||||||
Long-term Debt, Gross | $ 1,136,000,000 | $ 816,000,000 | ||||||||
Percentage Of Margin Aggregate Interest Rate | 3.70% | 3.50% | ||||||||
Senior Notes and Loans Payable [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Deferred Finance Costs, Net | $ (46,000,000) | $ (53,000,000) | ||||||||
Total | $ 3,599,000,000 | 3,523,000,000 | ||||||||
Interest Rate Swap [Member] | Senior Notes [Member] | Floating Rate Senior Notes Due December 2017 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Derivative, Fixed Interest Rate | 3.58% | |||||||||
Interest Rate Swap [Member] | Loans Payable [Member] | Floating Rate Term Loan Due March Two Thousand Twenty Two [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Derivative, Amount of Hedged Item | $ 700,000,000 | $ 600,000,000 | ||||||||
Derivative, Fixed Interest Rate | 3.79% | 4.21% |
Long-Term Debt And Borrowing 86
Long-Term Debt And Borrowing Arrangements - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |||||||
May 31, 2016 | Nov. 30, 2013 | Oct. 31, 2013 | Oct. 31, 2012 | Mar. 31, 2012 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2013 | |
Debt Instrument [Line Items] | |||||||||
Gain (Loss) on Extinguishment of Debt | $ (3) | $ (27) | $ (23) | ||||||
Loans Payable [Member] | Floating Rate Term Loan Due March 2019 | |||||||||
Debt Instrument [Line Items] | |||||||||
Proceeds from Issuance of Senior Long-term Debt | $ 300 | $ 200 | $ 500 | ||||||
Loans Payable [Member] | Floating Rate Term Loan Due March Two Thousand Twenty Two [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Proceeds from Issuance of Senior Long-term Debt | $ 825 | ||||||||
Senior Notes [Member] | Five And One Over Four Senior Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Proceeds from Issuance of Senior Long-term Debt | $ 375 | ||||||||
Senior Notes [Member] | 5 1/2% Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Proceeds from Issuance of Senior Long-term Debt | $ 500 | ||||||||
Senior Notes [Member] | Floating Rate Senior Notes Due December 2017 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Convertible Senior Note Issuance Price As Percentage Of Face Value | 98.75% | ||||||||
Proceeds from Issuance of Senior Long-term Debt | $ 247 |
Contractual Maturities of Compa
Contractual Maturities of Company's Corporate Debt (Detail) $ in Millions | Dec. 31, 2017USD ($) |
Long-Term Debt And Borrowing Arrangements [Abstract] | |
2,016 | $ 26 |
2,017 | 20 |
2,018 | 16 |
2,019 | 14 |
2,020 | 1,493 |
Thereafter | 2,076 |
Total | $ 3,645 |
Schedule of Committed Credit Fa
Schedule of Committed Credit Facilities (Detail) $ in Millions | Dec. 31, 2017USD ($) |
Revolving Credit Facility Maturing 2018 | |
Line of Credit Facility [Line Items] | |
Total Capacity | $ 1,800 |
Outstanding Borrowings | 0 |
Letters of Credit Issued | 782 |
Available Capacity | 1,018 |
Other Credit Facility [Member] | |
Line of Credit Facility [Line Items] | |
Total Capacity | 3 |
Outstanding Borrowings | 3 |
Letters of Credit Issued | 0 |
Available Capacity | $ 0 |
Schedule of Committed Credit 89
Schedule of Committed Credit Facilities Additional Information (Detail) | 12 Months Ended | 24 Months Ended |
Dec. 31, 2017 | Dec. 31, 2017 | |
Uncommitted Credit Facility [Member] | Minimum [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Interest Rate During Period | 0.75% | |
Uncommitted Credit Facility [Member] | Maximum | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Interest Rate During Period | 5.25% | |
Bank Overdrafts [Member] | Minimum [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Interest Rate During Period | 3.10% | |
Bank Overdrafts [Member] | Maximum | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Interest Rate During Period | 3.18% | |
Revolving Credit Facility Maturing 2018 | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 2.00% |
Schedule Of Debt Under Vehicle
Schedule Of Debt Under Vehicle Programs (Detail) - USD ($) $ in Millions | 1 Months Ended | ||||
Dec. 31, 2017 | Mar. 31, 2017 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2016 | |
Debt Under Vehicle Programs And Borrowing Arrangements [Line Items] | |||||
Interest rate on capital leases | 1.00% | 2.00% | |||
Leasing Vehicles And Related Assets Pledged As Collateralized Debt | $ 8,200 | ||||
Debt under vehicle programs | $ 9,221 | $ 8,878 | |||
Debt Due To Rental Car Funding [Member] | |||||
Debt Under Vehicle Programs And Borrowing Arrangements [Line Items] | |||||
Debt Instrument, Issuance Date | Dec. 1, 2017 | Mar. 1, 2017 | Jun. 1, 2016 | Mar. 1, 2016 | |
Debt Instrument, Maturity Date | Mar. 1, 2023 | Sep. 1, 2022 | Nov. 1, 2021 | Jun. 1, 2021 | |
Asset-Backed Securities, at Carrying Value | $ 500 | $ 600 | $ 500 | $ 450 | |
Leasing Vehicles And Related Assets Pledged As Collateralized Debt | 8,000 | ||||
Debt under vehicle programs | 6,516 | 6,733 | |||
Deferred Finance Costs, Net | $ (36) | $ (38) | |||
Americas Debt Borrowings [Member] | |||||
Debt Under Vehicle Programs And Borrowing Arrangements [Line Items] | |||||
Debt, Weighted Average Interest Rate | 3.00% | 4.00% | |||
Leasing Vehicles And Related Assets Pledged As Collateralized Debt | $ 900 | ||||
Debt under vehicle programs | $ 660 | $ 577 | |||
International Debt Borrowings | |||||
Debt Under Vehicle Programs And Borrowing Arrangements [Line Items] | |||||
Debt, Weighted Average Interest Rate | 2.00% | 2.00% | |||
Leasing Vehicles And Related Assets Pledged As Collateralized Debt | $ 2,300 | ||||
Debt under vehicle programs | 1,942 | $ 1,449 | |||
International Capital Leases | |||||
Debt Under Vehicle Programs And Borrowing Arrangements [Line Items] | |||||
Leasing Vehicles And Related Assets Pledged As Collateralized Debt | 200 | ||||
Debt under vehicle programs | 146 | 162 | |||
Other | |||||
Debt Under Vehicle Programs And Borrowing Arrangements [Line Items] | |||||
Debt under vehicle programs | 1 | 7 | |||
Debt Under Vehicle Programs [Member] | |||||
Debt Under Vehicle Programs And Borrowing Arrangements [Line Items] | |||||
Debt under vehicle programs | 9,265 | ||||
Deferred Finance Costs, Net | $ (44) | $ (50) |
Debt Under Vehicle Programs A91
Debt Under Vehicle Programs And Borrowing Arrangements - Additional Information (Detail) - EUR (€) € in Millions | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
European Rental Fleet Securitization [Member] | |||||
Debt Instrument [Line Items] | |||||
Newly Issued European Credit Facility | € 250 | € 400 | € 210 | € 290 | € 500 |
Schedule Of Contractual Maturit
Schedule Of Contractual Maturities (Detail) $ in Millions | Dec. 31, 2017USD ($) |
Debt Under Vehicle Programs And Borrowing Arrangements [Line Items] | |
2,016 | $ 26 |
2,017 | 20 |
2,018 | 16 |
2,019 | 14 |
2,020 | 1,493 |
Thereafter | 2,076 |
Vehicle Programs | |
Debt Under Vehicle Programs And Borrowing Arrangements [Line Items] | |
2,016 | 1,886 |
2,017 | 3,170 |
2,018 | 1,868 |
2,019 | 1,019 |
2,020 | 883 |
Thereafter | 439 |
Total | $ 9,265 |
Schedule Of Available Funding U
Schedule Of Available Funding Under Vehicle Programs (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Under Vehicle Programs And Borrowing Arrangements [Line Items] | ||
Leasing Vehicles And Related Assets Pledged As Collateralized Debt | $ 8,200 | |
Debt under vehicle programs | $ 9,221 | $ 8,878 |
Avis Budget Rental Car Funding Program [Member] | ||
Debt Under Vehicle Programs And Borrowing Arrangements [Line Items] | ||
Debt, Weighted Average Interest Rate | 3.00% | 3.00% |
Debt Due To Rental Car Funding [Member] | ||
Debt Under Vehicle Programs And Borrowing Arrangements [Line Items] | ||
Leasing Vehicles And Related Assets Pledged As Collateralized Debt | $ 8,000 | |
Total Capacity | 9,296 | |
Debt under vehicle programs | 6,516 | $ 6,733 |
Available Capacity | $ 2,780 | |
Americas Debt Borrowings [Member] | ||
Debt Under Vehicle Programs And Borrowing Arrangements [Line Items] | ||
Debt, Weighted Average Interest Rate | 3.00% | 4.00% |
Leasing Vehicles And Related Assets Pledged As Collateralized Debt | $ 900 | |
Total Capacity | 924 | |
Debt under vehicle programs | 660 | $ 577 |
Available Capacity | $ 264 | |
International Debt Borrowings | ||
Debt Under Vehicle Programs And Borrowing Arrangements [Line Items] | ||
Debt, Weighted Average Interest Rate | 2.00% | 2.00% |
Leasing Vehicles And Related Assets Pledged As Collateralized Debt | $ 2,300 | |
Total Capacity | 2,942 | |
Debt under vehicle programs | 1,942 | $ 1,449 |
Available Capacity | 1,000 | |
International Capital Leases | ||
Debt Under Vehicle Programs And Borrowing Arrangements [Line Items] | ||
Leasing Vehicles And Related Assets Pledged As Collateralized Debt | 200 | |
Total Capacity | 169 | |
Debt under vehicle programs | 146 | 162 |
Available Capacity | 23 | |
Other | ||
Debt Under Vehicle Programs And Borrowing Arrangements [Line Items] | ||
Total Capacity | 1 | |
Debt under vehicle programs | 1 | $ 7 |
Available Capacity | 0 | |
Debt Under Vehicle Programs [Member] | ||
Debt Under Vehicle Programs And Borrowing Arrangements [Line Items] | ||
Total Capacity | 13,332 | |
Debt under vehicle programs | 9,265 | |
Available Capacity | $ 4,067 |
Future Minimum Lease Payments (
Future Minimum Lease Payments (Detail) $ in Millions | Dec. 31, 2017USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Operating Leases, Future Minimum Payments Due, Future Minimum Sublease Rentals | $ 3 |
2,016 | 729 |
2,017 | 611 |
2,018 | 401 |
2,019 | 291 |
2,020 | 183 |
Thereafter | 549 |
Total | $ 2,764 |
Commitments And Contingencies -
Commitments And Contingencies - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule Of Commitments And Contingencies [Line Items] | |||
Future sublease rental inflows | $ 3 | ||
Operating leases, residual value of leased assets | 302 | ||
Loss Contingency Accrual | 12 | ||
Loss Contingency, Range of Possible Loss, Portion Not Accrued | 50 | ||
Vehicle purchase commitments over the next 12 months | 8,100 | ||
Aggregate purchase obligations | 224 | ||
Receivables due from former subsidiaries | 545 | $ 520 | $ 433 |
Liabilities accrued for asset retirement obligations | 23 | $ 24 | |
Realogy | |||
Schedule Of Commitments And Contingencies [Line Items] | |||
Receivables due from former subsidiaries | 23 | ||
Wyndham | |||
Schedule Of Commitments And Contingencies [Line Items] | |||
Receivables due from former subsidiaries | $ 14 |
Schedule Of Rent Expense (Detai
Schedule Of Rent Expense (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Rent and minimum concession fees | $ 715 | $ 699 | $ 679 |
Contingent concession expense | 221 | 214 | 195 |
Rent and contingent concession expense | 936 | 913 | 874 |
Less: sublease rental income | (4) | (5) | (5) |
Total | $ 932 | $ 908 | $ 869 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) | 12 Months Ended | 36 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | Jan. 31, 2018 | Jun. 30, 2017 | |
Stockholders Equity [Line Items] | ||||||
Entity Public Float | $ 2,222,192,349 | |||||
Stock Repurchase Program, Authorized Amount | $ 1,500,000,000 | $ 1,500,000,000 | ||||
Treasury Stock, Shares, Acquired | 27,000,000 | |||||
Treasury Stock, Value, Acquired, Cost Method | 200,000,000 | $ 390,000,000 | $ 394,000,000 | $ 1,000,000,000 | ||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | 100,000,000 | $ 100,000,000 | ||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | 2,000,000 | 4,000,000 | 5,000,000 | |||
Less: Pension and post-retirement benefits reclassified to earnings, net of tax of $(2), $(1) and $(6), respectively | (5,000,000) | (4,000,000) | (3,000,000) | |||
Entity Common Stock, Shares Outstanding | 80,952,244 | |||||
Designated as Hedging Instrument | Foreign Exchange Forward [Member] | ||||||
Stockholders Equity [Line Items] | ||||||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | (50,000,000) | 14,000,000 | 34,000,000 | |||
Corporate Interest Expense [Member] | ||||||
Stockholders Equity [Line Items] | ||||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax | 4,000,000 | 6,000,000 | 7,000,000 | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | $ 2,000,000 | $ 4,000,000 | $ 4,000,000 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | $ 2 | $ 4 | $ 5 |
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, before Tax | 8 | 6 | 5 |
Currency Translation Adjustment, Beginning Balance | (39) | (80) | 51 |
Currency translation adjustments, net of tax of $33, $(9) and $(22), respectively | 110 | 41 | (131) |
Currency Translation Adjustment, Ending Balance | 71 | (39) | (80) |
Net Unrealized Gains (Losses) on Cash Flow Hedges, Beginning Balance | 2 | (2) | (1) |
Net unrealized holding gains (losses), net of tax of $0, $(1), and $4, respectively | 1 | 0 | (6) |
Net Unrealized Gains (Losses) on Cash Flow Hedges, Period change | 3 | 4 | (1) |
Net Unrealized Gains (Losses) on Cash Flow Hedges, Ending Balance | 5 | 2 | (2) |
Net Unrealized Gains (Losses) on Available- For-Sale Securities, Beginning Balance | 1 | 0 | 2 |
Net unrealized gains (losses) on available-for-sale securities, net of tax of $(1), $(1),and $1, respectively | 1 | 1 | (2) |
Less: Realized losses on available-for-sale securities reclassified to earnings, net of tax of $0, $0 and $1, respectively | 0 | 0 | 0 |
Net unrealized gains on available-for-sale securities, net of tax of $0, $0 and $0, respectively | 1 | 1 | (2) |
Net Unrealized Gains (Losses) on Available- For-Sale Securities, Ending Balance | 2 | 1 | 0 |
Minimum Pension Liability Adjustment, Beginning Balance | (118) | (65) | (74) |
Other Comprehensive (Income) Loss, Defined Benefit Plan, before Reclassification Adjustment, after Tax | 11 | (57) | 6 |
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, after Tax | 5 | 4 | 3 |
Minimum Pension Liability Adjustment, Period change | 16 | (53) | 9 |
Minimum Pension Liability Adjustment, Ending Balance | (102) | (118) | (65) |
Accumulated Other Comprehensive Income (Loss), Beginning Balance | (154) | (147) | (22) |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent before reclassifications | 123 | (15) | (133) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 7 | 8 | 8 |
Accumulated Other Comprehensive Income (Loss), Period change | 130 | (7) | (125) |
Accumulated Other Comprehensive Income (Loss), Ending Balance | (24) | (154) | (147) |
Corporate Interest Expense [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | 2 | 4 | 4 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax | 4 | 6 | 7 |
Vehicle Interest [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | 0 | 1 | |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax | $ 1 | $ 1 | |
Foreign Exchange Forward [Member] | Designated as Hedging Instrument | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Derivatives used in Net Investment Hedge, Net of Tax | $ 33 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Share Based Compensation Percentage In Annual Base Salary, Min | 50.00% | ||
Deferred Compensation Arrangement with Individual, Shares Issued | 36,000 | 40,000 | 22,000 |
Maximum number of shares reserved for grant of awards | 20,100,000 | ||
Shares available for grant under the plan | 4,000,000 | ||
Aggregate Intrinsic Value - Exercised | $ 21 | $ 1 | $ 1 |
Share-based Compensation Arrangement by Share-based Payment Award, Discount from Market Price, Purchase Date | 95.00% | ||
Allocated Share-based Compensation Expense | $ 10 | 28 | 26 |
Allocated Share-based Compensation Expense, Net of Tax | 7 | $ 18 | $ 17 |
Employee Service Share Based Compensation Incremental Tax Benefit To Be Realized From Exercise Of Stock Awards | $ 56 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Unit Valuation Assumptions (Detail) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share Based Compensation Percentage In Annual Base Salary, Min | 50.00% | ||
Share Based Compensation Percentage In Annual Base Salary, Max | 100.00% | ||
Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility of stock price | 46.00% | 37.00% | |
Risk-free interest rate | 0.98% | 0.74% | |
Valuation period | 3 years | 3 years | |
Dividend yield | 0.00% | 0.00% |
Stock-Based Compensation - Annu
Stock-Based Compensation - Annual Activity Of Stock Units and Cash Units (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Expected to Vest, Weighted Average Remaining Contractual Term | 1 year | ||
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Expected to Vest, Number of Shares Outstanding | 1,160 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Number of RSUs - Balance at beginning of year | 878 | ||
Number of RSUs - Granted | 914 | ||
Number of RSUs - Vested | (470) | ||
Number of RSUs - Forfeited/expired | (162) | ||
Number of RSUs - Balance at end of year | 878 | ||
Weighted Average Grant Price, Balance at beginning of year | $ 34.83 | ||
Weighted Average Grant Price - Vested | 37.12 | ||
Weighted Average Grant Price - Forfeited/expired | 33.07 | ||
Weighted Average Grant Price - Granted | 35.32 | $ 25.92 | $ 54.70 |
Weighted Average Grant Price, Balance at end of year | $ 34.83 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Expected to Vest, Weighted Average Grant Date Fair Value | $ 34.54 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Expected to Vest, Weighted Average Remaining Contractual Term | 10 months 24 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Expected to Vest | $ 51 | ||
Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Outstanding, Weighted Average Remaining Contractual Terms | 1 year 5 months | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Expected to Vest, Number of Shares Outstanding | 97 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Number of RSUs - Balance at beginning of year | 923 | ||
Number of RSUs - Granted | 572 | ||
Number of RSUs - Vested | (146) | ||
Number of RSUs - Forfeited/expired | (355) | ||
Number of RSUs - Balance at end of year | 994 | 923 | |
Weighted Average Grant Price, Balance at beginning of year | $ 34.11 | ||
Weighted Average Grant Price - Vested | 36.55 | ||
Weighted Average Grant Price - Forfeited/expired | 37.82 | ||
Weighted Average Grant Price - Granted | 35.21 | $ 23.33 | $ 55.51 |
Weighted Average Grant Price, Balance at end of year | 33.06 | $ 34.11 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Expected to Vest, Weighted Average Grant Date Fair Value | $ 36.64 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Expected to Vest, Weighted Average Remaining Contractual Term | 2 years 2 months | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Outstanding | $ 44 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Expected to Vest | $ 4 |
Stock-Based Compensation - A102
Stock-Based Compensation - Annual Activity Of Stock Units and Cash Units Additional Information (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock Issued During Period, Value, Restricted Stock Award, Gross | $ 23 | $ 31 | $ 25 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | 2 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | 21 | $ 1 | $ 1 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 31 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 1 year | ||
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 470 | ||
Weighted Average Grant Price - Granted | $ 35.32 | $ 25.92 | $ 54.70 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 10 months 24 days | ||
Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 146 | ||
Number Of Restricted Stock Units Target Award Vested Range Maximum | 20.00% | ||
Weighted Average Grant Price - Granted | $ 35.21 | $ 23.33 | $ 55.51 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Outstanding | $ 44 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 2 years 2 months |
Stock-Based Compensation - A103
Stock-Based Compensation - Annual Activity Of Stock Options (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Number of Options, Balance at beginning of year | 810 | ||
Number of Options - Granted | 0 | ||
Number of Options - Exercised | (537) | ||
Number of Options - Forfeited/expired | 0 | ||
Number of Options, Balance at end of year | 273 | 810 | |
Weighted Average Exercise Price, Balance at beginning of year | $ 2.91 | ||
Weighted Average Exercise Price - Granted | 0 | ||
Weighted Average Exercise Price - Exercised | 0.79 | ||
Weighted Average Exercise Price - Forfeited/expired | 0 | ||
Weighted Average Exercise Price, Balance at end of year | $ 7.08 | $ 2.91 | |
Aggregate Intrinsic Value - Beginning of Year | $ 27 | ||
Aggregate Intrinsic Value - Granted | $ 0 | ||
Aggregate Intrinsic Value - Exercised | $ 21 | $ 1 | $ 1 |
Aggregate Intrinsic Value - End of Year | $ 10 | $ 27 | |
Weighted Average Remaining Contractual Term | 1 year 8 months | 2 years 3 months |
Stock-Based Compensation - A104
Stock-Based Compensation - Annual Activity Of Stock Options Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Aggregate Intrinsic Value - Exercised | $ 21 | $ 1 | $ 1 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Contributions | $ 36 | $ 33 | $ 32 |
Amortized from accumulated other comprehensive income into net periodic benefit cost | 7 | ||
Defined Benefit Plan, Plan with Benefit Obligation in Excess of Plan Assets, Benefit Obligation | 453 | 720 | |
Defined Benefit Plan, Plan with Benefit Obligation in Excess of Plan Assets, Fair Value of Plan Assets | 264 | 523 | |
Defined Benefit Plan, Accumulated Benefit Obligation | 769 | 712 | |
Estimated future benefit payments, 2014 | 26 | ||
Estimated future benefit payments, 2015 | 28 | ||
Estimated future benefit payments, 2016 | 28 | ||
Estimated future benefit payments, 2017 | 29 | ||
Estimated future benefit payments, 2018 | 31 | ||
Estimated future benefit payments, 2019 to 2023 | 170 | ||
Contribution to multiemployer plans | $ 9 | $ 9 | $ 9 |
Summary Of Net Periodic Benefit
Summary Of Net Periodic Benefit Cost (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Retirement Benefits [Abstract] | |||
Defined Benefit Plan, Benefit Obligation | $ 779 | $ 720 | $ 656 |
Employee Benefit Plans [Abstract] | |||
Service cost | 5 | 4 | 5 |
Interest cost | 19 | 21 | 22 |
Expected return on plan assets | (30) | (27) | (31) |
Defined Benefit Plan Amortization Of Unrecognized Amounts | 8 | 5 | 5 |
Net periodic benefit cost | 2 | 3 | 1 |
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) | (15) | (115) | |
Defined Benefit Plan, Benefit Obligation, Foreign Currency Translation Gain (Loss) | 44 | (53) | |
Defined Benefit Plan, Fair Value of Plan Assets | 614 | 523 | $ 527 |
Actual return on plan assets | 59 | 60 | |
Employer contributions | 24 | 12 | |
Defined Benefit Plan, Plan Assets, Foreign Currency Translation Gain (Loss) | $ 32 | $ (53) |
Summary of Funded Status of Pen
Summary of Funded Status of Pension Plans (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Retirement Benefits [Abstract] | |||
Defined Benefit Plan, Plan with Benefit Obligation in Excess of Plan Assets, Benefit Obligation | $ 453 | $ 720 | |
Assets for Plan Benefits, Defined Benefit Plan | (24) | 0 | |
Liability, Defined Benefit Plan, Current | (3) | (1) | |
Liability, Defined Benefit Plan, Noncurrent | (186) | (196) | |
Employee Benefit Plans [Abstract] | |||
Benefit obligation at end of prior year | 720 | 656 | |
Service cost | 5 | 4 | $ 5 |
Interest cost | 19 | 21 | 22 |
Actuarial loss | 15 | 115 | |
Defined Benefit Plan, Benefit Obligation, Foreign Currency Translation Gain (Loss) | 44 | (53) | |
Benefit obligation at end of current year | 779 | 720 | 656 |
Fair value of assets at end of prior year | 523 | 527 | |
Actual return on plan assets | 59 | 60 | |
Employer contributions | 24 | 12 | |
Defined Benefit Plan, Plan Assets, Foreign Currency Translation Gain (Loss) | 32 | (53) | |
Net benefits paid | (24) | (23) | |
Fair value of assets at end of current year | 614 | 523 | 527 |
Total unfunded status at end of year (recognized in other non-current liabilities in the Consolidated Balance Sheets) | (165) | (197) | |
Defined Benefit Plan, Plan with Benefit Obligation in Excess of Plan Assets, Fair Value of Plan Assets | 264 | 523 | |
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | 30 | 27 | 31 |
Defined Benefit Plan Amortization Of Unrecognized Amounts | 8 | 5 | 5 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | 2 | 3 | $ 1 |
Defined Benefit Plan, Benefit Obligation, Benefits Paid | $ 24 | $ 23 |
Summary Of Assumptions Used To
Summary Of Assumptions Used To Determine Pension Obligations And Pension Costs (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Maximum [Member] | Debt Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Target Allocation Percentage | .60 | ||
Maximum [Member] | Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Target Allocation Percentage | .60 | ||
Minimum [Member] | Debt Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Target Allocation Percentage | .40 | ||
Minimum [Member] | Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Target Allocation Percentage | .40 | ||
Domestic Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year | $ 4 | ||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 3.90% | 4.40% | 4.00% |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 3.50% | 3.90% | 4.40% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | 7.00% | 7.00% | 7.25% |
Foreign Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year | $ 5 | ||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 2.45% | 3.45% | 3.30% |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 2.55% | 2.45% | 3.45% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | 4.70% | 4.45% | 4.65% |
Summary Of Defined Benefit Pens
Summary Of Defined Benefit Pension Plans' Assets Fair Value (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | $ 614 | $ 523 | $ 527 |
Cash and Cash Equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 41 | 27 | |
US Stock | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 145 | 121 | |
Non US Stock | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 150 | 110 | |
Real Estate [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 18 | 15 | |
Non US Government Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 18 | 77 | |
Corporate Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 127 | 122 | |
Other Assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 115 | 51 | |
Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 264 | 230 | |
Fair Value, Inputs, Level 1 [Member] | Cash and Cash Equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 12 | 12 | |
Fair Value, Inputs, Level 1 [Member] | US Stock | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 102 | 87 | |
Fair Value, Inputs, Level 1 [Member] | Non US Stock | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 50 | 40 | |
Fair Value, Inputs, Level 1 [Member] | Real Estate [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Fair Value, Inputs, Level 1 [Member] | Non US Government Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 7 | 7 | |
Fair Value, Inputs, Level 1 [Member] | Corporate Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 90 | 82 | |
Fair Value, Inputs, Level 1 [Member] | Other Assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 3 | 2 | |
Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 350 | 293 | |
Fair Value, Inputs, Level 2 [Member] | Cash and Cash Equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 29 | 15 | |
Fair Value, Inputs, Level 2 [Member] | US Stock | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 43 | 34 | |
Fair Value, Inputs, Level 2 [Member] | Non US Stock | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 100 | 70 | |
Fair Value, Inputs, Level 2 [Member] | Real Estate [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 18 | 15 | |
Fair Value, Inputs, Level 2 [Member] | Non US Government Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 11 | 70 | |
Fair Value, Inputs, Level 2 [Member] | Corporate Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 37 | 40 | |
Fair Value, Inputs, Level 2 [Member] | Other Assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | $ 112 | $ 49 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Interest Rate Caps Sold | ||
Schedule of Cost-method Investments [Line Items] | ||
Derivative, Notional Amount | $ 8,000 | $ 7,400 |
Purchase [Member] | ||
Schedule of Cost-method Investments [Line Items] | ||
Derivative, Notional Amount | 3,000 | 2,300 |
Interest Rate Cap [Member] | ||
Schedule of Cost-method Investments [Line Items] | ||
Derivative, Notional Amount | 10,968 | 9,736 |
Interest Rate Cap [Member] | Subsidiary Issuers | ||
Schedule of Cost-method Investments [Line Items] | ||
Derivative, Notional Amount | 5,000 | 5,100 |
Interest Rate Swap [Member] | ||
Schedule of Cost-method Investments [Line Items] | ||
Derivative, Notional Amount | 1,000 | 1,950 |
Currency Swap [Member] | ||
Schedule of Cost-method Investments [Line Items] | ||
Derivative, Notional Amount | $ 934 | $ 692 |
Schedule Of Effect Of Derivativ
Schedule Of Effect Of Derivatives Recognized (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Cost-method Investments [Line Items] | |||
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | $ 11 | $ 15 | |
Derivatives not designated as hedging instruments | 91 | (58) | $ (79) |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | 8 | 13 | |
Interest Expense [Member] | |||
Schedule of Cost-method Investments [Line Items] | |||
Derivatives not designated as hedging instruments | 23 | (68) | (32) |
Operating Expense [Member] | |||
Schedule of Cost-method Investments [Line Items] | |||
Derivatives not designated as hedging instruments | 19 | 26 | (16) |
Designated as Hedging Instrument | Interest Rate Swap [Member] | |||
Schedule of Cost-method Investments [Line Items] | |||
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | 8 | 7 | |
Interest rate swaps | 3 | 4 | (1) |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | 0 | 4 | |
Designated as Hedging Instrument | Foreign Exchange Forward [Member] | |||
Schedule of Cost-method Investments [Line Items] | |||
Interest rate swaps | (50) | 14 | 34 |
Not Designated as Hedging Instrument | Foreign Exchange Forward [Member] | |||
Schedule of Cost-method Investments [Line Items] | |||
Derivatives not designated as hedging instruments | 42 | (42) | (48) |
Not Designated as Hedging Instrument | Currency Swap [Member] | |||
Schedule of Cost-method Investments [Line Items] | |||
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | 3 | 7 | |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | 7 | 2 | |
Not Designated as Hedging Instrument | Interest Rate Contract | |||
Schedule of Cost-method Investments [Line Items] | |||
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | 0 | 1 | |
Derivatives not designated as hedging instruments | 1 | 2 | 2 |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | 1 | 7 | |
Not Designated as Hedging Instrument | Commodity Contract | |||
Schedule of Cost-method Investments [Line Items] | |||
Derivatives not designated as hedging instruments | $ 1 | $ 0 | $ 0 |
Schedule Of Carrying Amounts An
Schedule Of Carrying Amounts And Estimated Fair Values (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Short-term debt and current portion of long-term debt | $ 26 | $ 279 |
Reported Value Measurement [Member] | ||
Debt Instrument [Line Items] | ||
Short-term debt and current portion of long-term debt | 26 | 279 |
Long-term debt, excluding convertible debt | 3,573 | 3,244 |
Debt under vehicle programs Vehicle-backed debt due to Avis Budget Rental Car Funding | 6,480 | 6,695 |
Vehicle-backed debt | 2,740 | 2,176 |
Interest rate swaps and interest rate contracts | 1 | 7 |
Estimate of Fair Value Measurement [Member] | ||
Debt Instrument [Line Items] | ||
Short-term debt and current portion of long-term debt | 26 | 280 |
Long-term debt, excluding convertible debt | 3,677 | 3,265 |
Debt under vehicle programs Vehicle-backed debt due to Avis Budget Rental Car Funding | 6,537 | 6,722 |
Vehicle-backed debt | 2,745 | 2,187 |
Interest rate swaps and interest rate contracts | $ 1 | $ 7 |
Summary of Segments Information
Summary of Segments Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||
Net revenues | $ 8,848 | $ 8,659 | $ 8,502 |
Vehicle depreciation and lease charges, net | 2,221 | 2,047 | 1,933 |
Vehicle interest, net | (286) | (284) | (289) |
Adjusted EBITDA | 735 | 838 | 903 |
Non-vehicle depreciation and amortization | 259 | 253 | 218 |
Assets exclusive of assets under vehicle programs | 5,820 | 6,065 | 5,918 |
Assets under vehicle programs | 11,879 | 11,578 | 11,716 |
Capital expenditures (excluding vehicles) | 197 | 190 | 199 |
Americas | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 6,100 | 6,121 | 6,069 |
Vehicle depreciation and lease charges, net | 1,671 | 1,559 | 1,478 |
Vehicle interest, net | (226) | (226) | (234) |
Adjusted EBITDA | 486 | 633 | 682 |
Non-vehicle depreciation and amortization | 168 | 165 | 143 |
Assets exclusive of assets under vehicle programs | 3,388 | 4,017 | 3,940 |
Assets under vehicle programs | 9,017 | 9,210 | 9,440 |
Capital expenditures (excluding vehicles) | 122 | 121 | 131 |
International | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 2,748 | 2,538 | 2,433 |
Vehicle depreciation and lease charges, net | 550 | 488 | 455 |
Vehicle interest, net | (60) | (58) | (55) |
Adjusted EBITDA | 305 | 273 | 277 |
Non-vehicle depreciation and amortization | 91 | 88 | 75 |
Assets exclusive of assets under vehicle programs | 2,353 | 1,990 | 1,901 |
Assets under vehicle programs | 2,862 | 2,368 | 2,276 |
Capital expenditures (excluding vehicles) | 62 | 62 | 68 |
Corporate and Other | |||
Segment Reporting Information [Line Items] | |||
Adjusted EBITDA | (56) | (68) | (56) |
Assets exclusive of assets under vehicle programs | 79 | 58 | 77 |
Capital expenditures (excluding vehicles) | 13 | 7 | |
Acquisition-related Costs [Member] | |||
Segment Reporting Information [Line Items] | |||
Non-vehicle depreciation and amortization | $ 58 | $ 59 | $ 55 |
Reconciliation of Adjusted EBIT
Reconciliation of Adjusted EBITDA to Income (Loss) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Acquired Indefinite-lived Intangible Assets [Line Items] | |||
Adjusted EBITDA | $ 735 | $ 838 | $ 903 |
Non-vehicle depreciation and amortization | 259 | 253 | 218 |
Interest expense related to corporate debt, net | (188) | (203) | (194) |
Early extinguishment of debt | 3 | 27 | 23 |
Restructuring Charges | 63 | 29 | 18 |
Impairment | 23 | 21 | 68 |
Asset Impairment Charges | 2 | 0 | 0 |
Charges for legal matter | (14) | 26 | 0 |
Income before income taxes | 211 | 279 | 382 |
Acquisition-related Costs [Member] | |||
Acquired Indefinite-lived Intangible Assets [Line Items] | |||
Non-vehicle depreciation and amortization | $ 58 | $ 59 | $ 55 |
Summary of Geographic Segment I
Summary of Geographic Segment Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenues | $ 8,848 | $ 8,659 | $ 8,502 |
Assets exclusive of assets under vehicle programs | 5,820 | 6,065 | 5,918 |
Assets under vehicle programs | 11,879 | 11,578 | 11,716 |
Long-Lived Assets | 2,627 | 2,562 | 2,571 |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenues | 5,629 | 5,674 | 5,635 |
Assets exclusive of assets under vehicle programs | 3,069 | 3,699 | 3,677 |
Assets under vehicle programs | 8,192 | 8,552 | 8,786 |
Long-Lived Assets | 1,451 | 1,489 | 1,502 |
All Other Countries | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenues | 3,219 | 2,985 | 2,867 |
Assets exclusive of assets under vehicle programs | 2,751 | 2,366 | 2,241 |
Assets under vehicle programs | 3,687 | 3,026 | 2,930 |
Long-Lived Assets | $ 1,176 | $ 1,073 | $ 1,069 |
Consolidating Condensed Stateme
Consolidating Condensed Statements of Operations (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Condensed Financial Statements, Captions [Line Items] | ||||
Decrease Increase In Program Cash | $ 0 | $ 0 | ||
Vehicle rental | $ 6,219 | 6,081 | 6,026 | |
Other | 2,629 | 2,578 | 2,476 | |
Net revenues | 8,848 | 8,659 | 8,502 | |
Operating | 4,472 | 4,382 | 4,284 | |
Vehicle depreciation and lease charges, net | 2,221 | 2,047 | 1,933 | |
Selling, general and administrative | 1,120 | 1,134 | 1,093 | |
Vehicle interest, net | 286 | 284 | 289 | |
Non-vehicle related depreciation and amortization | 259 | 253 | 218 | |
Interest expense | 188 | 203 | 194 | |
Intercompany interest expense (income) | 0 | 0 | 0 | |
Early extinguishment of debt | 3 | 27 | 23 | |
Impairment | 23 | 21 | 68 | |
Restructuring Charges | 63 | 29 | 18 | |
Impairment of Intangible Assets (Excluding Goodwill) | 2 | |||
Total expenses | 8,637 | 8,380 | 8,120 | |
Income before income taxes | 211 | 279 | 382 | |
Provision for (benefit from) income taxes | (150) | 116 | 69 | |
Equity in earnings (loss) of subsidiaries | 0 | 0 | 0 | |
Net income | 361 | 163 | 313 | |
Total comprehensive income | 491 | 156 | 188 | |
Payments for (Proceeds from) Other Investing Activities | 5 | 1 | 3 | |
Net Cash Provided by (Used in) Investing Activities | (2,204) | (2,182) | (2,685) | |
Effect of changes in exchange rates on cash and cash equivalents, program and restricted cash | 45 | (6) | (50) | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | 181 | 3 | (36) | |
Program cash | 283 | 225 | ||
Restricted Cash and Cash Equivalents | 7 | 5 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 901 | 720 | 717 | $ 753 |
Parent Company | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Vehicle rental | 0 | 0 | 0 | |
Other | 0 | 0 | 0 | |
Net revenues | 0 | 0 | 0 | |
Operating | 3 | 4 | 2 | |
Vehicle depreciation and lease charges, net | 0 | 0 | 0 | |
Selling, general and administrative | 39 | 38 | 32 | |
Vehicle interest, net | 0 | 0 | 0 | |
Non-vehicle related depreciation and amortization | 0 | 0 | 0 | |
Interest expense | 0 | 0 | 0 | |
Intercompany interest expense (income) | (12) | (13) | (12) | |
Early extinguishment of debt | 0 | 0 | 0 | |
Impairment | 0 | 0 | 0 | |
Restructuring Charges | 0 | 0 | 0 | |
Impairment of Intangible Assets (Excluding Goodwill) | 0 | |||
Total expenses | 30 | 29 | 22 | |
Income before income taxes | (30) | (29) | (22) | |
Provision for (benefit from) income taxes | (5) | (11) | (9) | |
Equity in earnings (loss) of subsidiaries | 386 | 181 | 326 | |
Net income | 361 | 163 | 313 | |
Total comprehensive income | 491 | 156 | 188 | |
Payments for (Proceeds from) Other Investing Activities | 100 | 118 | 334 | |
Net Cash Provided by (Used in) Investing Activities | 100 | 118 | 334 | |
Effect of changes in exchange rates on cash and cash equivalents, program and restricted cash | 0 | 0 | 0 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | 1 | (1) | 2 | |
Program cash | 0 | 0 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 4 | 3 | 4 | 2 |
Subsidiary Issuers | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Vehicle rental | 0 | 0 | 0 | |
Other | 0 | 0 | 0 | |
Net revenues | 0 | 0 | 0 | |
Operating | 20 | 18 | 17 | |
Vehicle depreciation and lease charges, net | 0 | 0 | 1 | |
Selling, general and administrative | 8 | 18 | 15 | |
Vehicle interest, net | 0 | 0 | 0 | |
Non-vehicle related depreciation and amortization | 1 | 2 | 1 | |
Interest expense | 157 | 141 | 159 | |
Intercompany interest expense (income) | 95 | (7) | (11) | |
Early extinguishment of debt | 4 | 10 | 23 | |
Impairment | 1 | 2 | 22 | |
Restructuring Charges | 7 | 0 | 0 | |
Impairment of Intangible Assets (Excluding Goodwill) | 0 | |||
Total expenses | 293 | 184 | 227 | |
Income before income taxes | (293) | (184) | (227) | |
Provision for (benefit from) income taxes | 267 | (70) | (178) | |
Equity in earnings (loss) of subsidiaries | 946 | 295 | 375 | |
Net income | 386 | 181 | 326 | |
Total comprehensive income | 515 | 173 | 203 | |
Payments for (Proceeds from) Other Investing Activities | 110 | (1) | (127) | |
Net Cash Provided by (Used in) Investing Activities | 106 | (4) | (166) | |
Effect of changes in exchange rates on cash and cash equivalents, program and restricted cash | 0 | 0 | 0 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | 2 | (58) | (140) | |
Program cash | 0 | 0 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 14 | 12 | 70 | 210 |
Guarantor Subsidiaries | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Vehicle rental | 4,108 | 4,134 | 4,124 | |
Other | 1,204 | 1,209 | 1,181 | |
Net revenues | 5,312 | 5,343 | 5,305 | |
Operating | 2,598 | 2,622 | 2,587 | |
Vehicle depreciation and lease charges, net | 2,226 | 1,993 | 1,819 | |
Selling, general and administrative | 619 | 631 | 619 | |
Vehicle interest, net | 199 | 198 | 204 | |
Non-vehicle related depreciation and amortization | 160 | 155 | 133 | |
Interest expense | 1 | 3 | (5) | |
Intercompany interest expense (income) | 23 | 23 | 16 | |
Early extinguishment of debt | 0 | 0 | 0 | |
Impairment | 3 | 1 | 6 | |
Restructuring Charges | 44 | 9 | 6 | |
Impairment of Intangible Assets (Excluding Goodwill) | 2 | |||
Total expenses | 5,875 | 5,635 | 5,385 | |
Income before income taxes | (563) | (292) | (80) | |
Provision for (benefit from) income taxes | (527) | 123 | 170 | |
Equity in earnings (loss) of subsidiaries | 982 | 710 | 625 | |
Net income | 946 | 295 | 375 | |
Total comprehensive income | 1,073 | 283 | 253 | |
Payments for (Proceeds from) Other Investing Activities | 110 | 0 | 1 | |
Net Cash Provided by (Used in) Investing Activities | 24 | (65) | (203) | |
Effect of changes in exchange rates on cash and cash equivalents, program and restricted cash | 0 | 0 | 0 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | 0 | 0 | 0 | |
Program cash | 0 | 0 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 0 | 0 | 0 | 0 |
Non-Guarantor Subsidiaries | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Decrease Increase In Program Cash | 0 | 0 | ||
Vehicle rental | 2,111 | 1,947 | 1,902 | |
Other | 3,820 | 3,563 | 3,335 | |
Net revenues | 5,931 | 5,510 | 5,237 | |
Operating | 1,851 | 1,738 | 1,678 | |
Vehicle depreciation and lease charges, net | 2,183 | 2,045 | 1,936 | |
Selling, general and administrative | 454 | 447 | 427 | |
Vehicle interest, net | 294 | 289 | 302 | |
Non-vehicle related depreciation and amortization | 98 | 96 | 84 | |
Interest expense | 30 | 59 | 40 | |
Intercompany interest expense (income) | (106) | (3) | 7 | |
Early extinguishment of debt | (1) | 17 | 0 | |
Impairment | 19 | 18 | 40 | |
Restructuring Charges | 12 | 20 | 12 | |
Impairment of Intangible Assets (Excluding Goodwill) | 0 | |||
Total expenses | 4,834 | 4,726 | 4,526 | |
Income before income taxes | 1,097 | 784 | 711 | |
Provision for (benefit from) income taxes | 115 | 74 | 86 | |
Equity in earnings (loss) of subsidiaries | 0 | 0 | 0 | |
Net income | 982 | 710 | 625 | |
Total comprehensive income | 1,103 | 712 | 504 | |
Payments for (Proceeds from) Other Investing Activities | 5 | 2 | 5 | |
Net Cash Provided by (Used in) Investing Activities | (2,378) | (2,401) | (2,566) | |
Effect of changes in exchange rates on cash and cash equivalents, program and restricted cash | 45 | (6) | (50) | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | 178 | 62 | 102 | |
Program cash | 283 | 225 | ||
Restricted Cash and Cash Equivalents | 7 | 5 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 883 | 705 | 643 | 541 |
Eliminations | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Vehicle rental | 0 | 0 | 0 | |
Other | (2,395) | (2,194) | (2,040) | |
Net revenues | (2,395) | (2,194) | (2,040) | |
Operating | 0 | 0 | 0 | |
Vehicle depreciation and lease charges, net | (2,188) | (1,991) | (1,823) | |
Selling, general and administrative | 0 | 0 | 0 | |
Vehicle interest, net | (207) | (203) | (217) | |
Non-vehicle related depreciation and amortization | 0 | 0 | 0 | |
Interest expense | 0 | 0 | 0 | |
Intercompany interest expense (income) | 0 | 0 | 0 | |
Early extinguishment of debt | 0 | 0 | 0 | |
Impairment | 0 | 0 | 0 | |
Restructuring Charges | 0 | 0 | 0 | |
Impairment of Intangible Assets (Excluding Goodwill) | 0 | |||
Total expenses | (2,395) | (2,194) | (2,040) | |
Income before income taxes | 0 | 0 | 0 | |
Provision for (benefit from) income taxes | 0 | 0 | 0 | |
Equity in earnings (loss) of subsidiaries | (2,314) | (1,186) | (1,326) | |
Net income | (2,314) | (1,186) | (1,326) | |
Total comprehensive income | (2,691) | (1,168) | (960) | |
Payments for (Proceeds from) Other Investing Activities | (320) | (118) | (210) | |
Net Cash Provided by (Used in) Investing Activities | (56) | 170 | (84) | |
Effect of changes in exchange rates on cash and cash equivalents, program and restricted cash | 0 | 0 | 0 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | 0 | 0 | 0 | |
Program cash | 0 | 0 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 0 | 0 | 0 | 0 |
Restatement Adjustment [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Decrease Increase In Program Cash | (31) | 148 | ||
Payments for (Proceeds from) Other Investing Activities | (2) | (3) | ||
Net Cash Provided by (Used in) Investing Activities | (33) | 145 | ||
Effect of changes in exchange rates on cash and cash equivalents, program and restricted cash | (2) | (9) | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | (35) | 136 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 230 | 265 | 129 | |
Restatement Adjustment [Member] | Non-Guarantor Subsidiaries | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Decrease Increase In Program Cash | (31) | 148 | ||
Payments for (Proceeds from) Other Investing Activities | (2) | (3) | ||
Net Cash Provided by (Used in) Investing Activities | (33) | 145 | ||
Effect of changes in exchange rates on cash and cash equivalents, program and restricted cash | (2) | (9) | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | (35) | 136 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 230 | 265 | 129 | |
Scenario, Previously Reported [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Decrease Increase In Program Cash | 31 | (148) | ||
Payments for (Proceeds from) Other Investing Activities | 3 | 6 | ||
Net Cash Provided by (Used in) Investing Activities | (2,149) | (2,830) | ||
Effect of changes in exchange rates on cash and cash equivalents, program and restricted cash | (4) | (41) | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | 38 | (172) | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 490 | 452 | 624 | |
Scenario, Previously Reported [Member] | Non-Guarantor Subsidiaries | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Decrease Increase In Program Cash | 31 | (148) | ||
Payments for (Proceeds from) Other Investing Activities | 4 | 8 | ||
Net Cash Provided by (Used in) Investing Activities | (2,368) | (2,711) | ||
Effect of changes in exchange rates on cash and cash equivalents, program and restricted cash | (4) | (41) | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | 97 | (34) | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 475 | $ 378 | $ 412 |
Consolidating Condensed Balance
Consolidating Condensed Balance Sheets (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||||
Cash and cash equivalents | $ 611 | $ 490 | ||
Receivables, net | 922 | 808 | ||
Other current assets | 533 | 519 | ||
Total current assets | 2,066 | 1,817 | ||
Property and equipment, net | 704 | 685 | ||
Deferred income taxes | 931 | 1,493 | ||
Goodwill | 1,073 | 1,007 | $ 973 | |
Other intangibles, net | 850 | 870 | ||
Other non-current assets | 196 | 193 | ||
Intercompany receivables (payables) | 0 | 0 | ||
Investment in subsidiaries | 0 | 0 | ||
Total assets exclusive of assets under vehicle programs | 5,820 | 6,065 | ||
Assets under vehicle programs: | ||||
Program cash | 283 | 225 | ||
Vehicles, net | 10,626 | 10,464 | ||
Receivables from vehicle manufacturers and other | 547 | 527 | ||
Investment in Avis Budget Rental Car Funding (AESOP) LLC—related party | 423 | 362 | ||
Assets under vehicle programs | 11,879 | 11,578 | 11,716 | |
Total assets | 17,699 | 17,643 | ||
Current liabilities: | ||||
Short-term debt and current portion of long-term debt | 26 | 279 | ||
Accounts payable and other current liabilities | 1,619 | 1,488 | ||
Total current liabilities | 1,645 | 1,767 | ||
Long-term debt | 3,573 | 3,244 | ||
Due to Related Parties, Noncurrent | 0 | 0 | ||
Deferred Income Taxes | 1,594 | 2,429 | ||
Other non-current liabilities | 717 | 764 | ||
Total liabilities exclusive of liabilities under vehicle programs | 5,935 | 5,775 | ||
Liabilities under vehicle programs: | ||||
Debt | 2,741 | 2,183 | ||
Due to Avis Budget Rental Car Funding (AESOP) LLC-related party | 6,480 | 6,695 | ||
Other | 376 | 340 | ||
Total Liabilities under vehicle programs | 11,191 | 11,647 | ||
Total stockholders’ equity | 573 | 221 | $ 439 | $ 665 |
Total liabilities and stockholders’ equity | 17,699 | 17,643 | ||
Parent Company | ||||
Current assets: | ||||
Cash and cash equivalents | 4 | 3 | ||
Receivables, net | 0 | 0 | ||
Other current assets | 4 | 2 | ||
Total current assets | 8 | 5 | ||
Property and equipment, net | 0 | 0 | ||
Deferred income taxes | 14 | 20 | ||
Goodwill | 0 | 0 | ||
Other intangibles, net | 0 | 0 | ||
Other non-current assets | 46 | 75 | ||
Intercompany receivables (payables) | 187 | 171 | ||
Investment in subsidiaries | 381 | 42 | ||
Total assets exclusive of assets under vehicle programs | 636 | 313 | ||
Assets under vehicle programs: | ||||
Program cash | 0 | 0 | ||
Vehicles, net | 0 | 0 | ||
Receivables from vehicle manufacturers and other | 0 | 0 | ||
Investment in Avis Budget Rental Car Funding (AESOP) LLC—related party | 0 | 0 | ||
Assets under vehicle programs | 0 | 0 | ||
Total assets | 636 | 313 | ||
Current liabilities: | ||||
Short-term debt and current portion of long-term debt | 0 | 0 | ||
Accounts payable and other current liabilities | 23 | 23 | ||
Total current liabilities | 23 | 23 | ||
Long-term debt | 0 | 0 | ||
Due to Related Parties, Noncurrent | 0 | 0 | ||
Deferred Income Taxes | 0 | 0 | ||
Other non-current liabilities | 40 | 69 | ||
Total liabilities exclusive of liabilities under vehicle programs | 63 | 92 | ||
Liabilities under vehicle programs: | ||||
Debt | 0 | 0 | ||
Due to Avis Budget Rental Car Funding (AESOP) LLC-related party | 0 | 0 | ||
Other | 0 | 0 | ||
Total Liabilities under vehicle programs | 0 | 0 | ||
Total stockholders’ equity | 573 | 221 | ||
Total liabilities and stockholders’ equity | 636 | 313 | ||
Subsidiary Issuers | ||||
Current assets: | ||||
Cash and cash equivalents | 14 | 12 | ||
Receivables, net | 0 | 0 | ||
Other current assets | 89 | 101 | ||
Total current assets | 103 | 113 | ||
Property and equipment, net | 167 | 148 | ||
Deferred income taxes | 704 | 1,219 | ||
Goodwill | 0 | 0 | ||
Other intangibles, net | 27 | 28 | ||
Other non-current assets | 29 | 24 | ||
Intercompany receivables (payables) | 382 | 359 | ||
Investment in subsidiaries | 4,681 | 3,717 | ||
Total assets exclusive of assets under vehicle programs | 6,093 | 5,608 | ||
Assets under vehicle programs: | ||||
Program cash | 0 | 0 | ||
Vehicles, net | 34 | 24 | ||
Receivables from vehicle manufacturers and other | 1 | 1 | ||
Investment in Avis Budget Rental Car Funding (AESOP) LLC—related party | 0 | 0 | ||
Assets under vehicle programs | 35 | 25 | ||
Total assets | 6,128 | 5,633 | ||
Current liabilities: | ||||
Short-term debt and current portion of long-term debt | 17 | 264 | ||
Accounts payable and other current liabilities | 207 | 189 | ||
Total current liabilities | 224 | 453 | ||
Long-term debt | 2,910 | 2,730 | ||
Due to Related Parties, Noncurrent | 2,515 | 2,306 | ||
Deferred Income Taxes | 0 | 0 | ||
Other non-current liabilities | 83 | 88 | ||
Total liabilities exclusive of liabilities under vehicle programs | 5,732 | 5,577 | ||
Liabilities under vehicle programs: | ||||
Debt | 15 | 14 | ||
Due to Avis Budget Rental Car Funding (AESOP) LLC-related party | 0 | 0 | ||
Other | 0 | 0 | ||
Total Liabilities under vehicle programs | 15 | 14 | ||
Total stockholders’ equity | 381 | 42 | ||
Total liabilities and stockholders’ equity | 6,128 | 5,633 | ||
Guarantor Subsidiaries | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | ||
Receivables, net | 255 | 231 | ||
Other current assets | 101 | 90 | ||
Total current assets | 356 | 321 | ||
Property and equipment, net | 321 | 341 | ||
Deferred income taxes | 154 | 268 | ||
Goodwill | 471 | 489 | ||
Other intangibles, net | 480 | 502 | ||
Other non-current assets | 16 | 16 | ||
Intercompany receivables (payables) | 1,506 | 1,466 | ||
Investment in subsidiaries | 3,938 | 3,698 | ||
Total assets exclusive of assets under vehicle programs | 7,242 | 7,101 | ||
Assets under vehicle programs: | ||||
Program cash | 0 | 0 | ||
Vehicles, net | 61 | 70 | ||
Receivables from vehicle manufacturers and other | 0 | 0 | ||
Investment in Avis Budget Rental Car Funding (AESOP) LLC—related party | 0 | 0 | ||
Assets under vehicle programs | 61 | 70 | ||
Total assets | 7,303 | 7,171 | ||
Current liabilities: | ||||
Short-term debt and current portion of long-term debt | 3 | 3 | ||
Accounts payable and other current liabilities | 552 | 512 | ||
Total current liabilities | 555 | 515 | ||
Long-term debt | 3 | 3 | ||
Due to Related Parties, Noncurrent | 382 | 359 | ||
Deferred Income Taxes | 1,407 | 2,258 | ||
Other non-current liabilities | 216 | 253 | ||
Total liabilities exclusive of liabilities under vehicle programs | 1,156 | 1,130 | ||
Liabilities under vehicle programs: | ||||
Debt | 57 | 66 | ||
Due to Avis Budget Rental Car Funding (AESOP) LLC-related party | 0 | 0 | ||
Other | 2 | 0 | ||
Total Liabilities under vehicle programs | 1,466 | 2,324 | ||
Total stockholders’ equity | 4,681 | 3,717 | ||
Total liabilities and stockholders’ equity | 7,303 | 7,171 | ||
Non-Guarantor Subsidiaries | ||||
Current assets: | ||||
Cash and cash equivalents | 593 | 475 | ||
Receivables, net | 667 | 577 | ||
Other current assets | 339 | 326 | ||
Total current assets | 1,599 | 1,378 | ||
Property and equipment, net | 216 | 196 | ||
Deferred income taxes | 59 | 0 | ||
Goodwill | 602 | 518 | ||
Other intangibles, net | 343 | 340 | ||
Other non-current assets | 105 | 78 | ||
Intercompany receivables (payables) | 824 | 670 | ||
Investment in subsidiaries | 0 | 0 | ||
Total assets exclusive of assets under vehicle programs | 3,748 | 3,180 | ||
Assets under vehicle programs: | ||||
Program cash | 283 | 225 | ||
Vehicles, net | 10,531 | 10,370 | ||
Receivables from vehicle manufacturers and other | 546 | 526 | ||
Investment in Avis Budget Rental Car Funding (AESOP) LLC—related party | 423 | 362 | ||
Assets under vehicle programs | 11,783 | 11,483 | ||
Total assets | 15,531 | 14,663 | ||
Current liabilities: | ||||
Short-term debt and current portion of long-term debt | 6 | 12 | ||
Accounts payable and other current liabilities | 837 | 764 | ||
Total current liabilities | 843 | 776 | ||
Long-term debt | 660 | 511 | ||
Due to Related Parties, Noncurrent | 2 | 1 | ||
Deferred Income Taxes | 187 | 171 | ||
Other non-current liabilities | 378 | 368 | ||
Total liabilities exclusive of liabilities under vehicle programs | 1,883 | 1,656 | ||
Liabilities under vehicle programs: | ||||
Debt | 2,669 | 2,103 | ||
Due to Avis Budget Rental Car Funding (AESOP) LLC-related party | 6,480 | 6,695 | ||
Other | 374 | 340 | ||
Total Liabilities under vehicle programs | 9,710 | 9,309 | ||
Total stockholders’ equity | 3,938 | 3,698 | ||
Total liabilities and stockholders’ equity | 15,531 | 14,663 | ||
Eliminations | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | ||
Receivables, net | 0 | 0 | ||
Other current assets | 0 | 0 | ||
Total current assets | 0 | 0 | ||
Property and equipment, net | 0 | 0 | ||
Deferred income taxes | 0 | (14) | ||
Goodwill | 0 | 0 | ||
Other intangibles, net | 0 | 0 | ||
Other non-current assets | 0 | 0 | ||
Intercompany receivables (payables) | (2,899) | (2,666) | ||
Investment in subsidiaries | (9,000) | (7,457) | ||
Total assets exclusive of assets under vehicle programs | (11,899) | (10,137) | ||
Assets under vehicle programs: | ||||
Program cash | 0 | 0 | ||
Vehicles, net | 0 | 0 | ||
Receivables from vehicle manufacturers and other | 0 | 0 | ||
Investment in Avis Budget Rental Car Funding (AESOP) LLC—related party | 0 | 0 | ||
Assets under vehicle programs | 0 | 0 | ||
Total assets | (11,899) | (10,137) | ||
Current liabilities: | ||||
Short-term debt and current portion of long-term debt | 0 | 0 | ||
Accounts payable and other current liabilities | 0 | 0 | ||
Total current liabilities | 0 | 0 | ||
Long-term debt | 0 | 0 | ||
Due to Related Parties, Noncurrent | (2,899) | (2,666) | ||
Deferred Income Taxes | 0 | 0 | ||
Other non-current liabilities | 0 | (14) | ||
Total liabilities exclusive of liabilities under vehicle programs | (2,899) | (2,680) | ||
Liabilities under vehicle programs: | ||||
Debt | 0 | 0 | ||
Due to Avis Budget Rental Car Funding (AESOP) LLC-related party | 0 | 0 | ||
Other | 0 | 0 | ||
Total Liabilities under vehicle programs | 0 | 0 | ||
Total stockholders’ equity | (9,000) | (7,457) | ||
Total liabilities and stockholders’ equity | $ (11,899) | $ (10,137) |
Consolidating Condensed Stat118
Consolidating Condensed Statements of Cash Flows (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Condensed Financial Statements, Captions [Line Items] | ||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 901 | $ 720 | $ 717 | $ 753 |
Net cash provided by (used in) operating activities | 2,648 | 2,640 | 2,627 | |
Investing activities | ||||
Property and equipment additions | (197) | (190) | (199) | |
Proceeds received on asset sales | 8 | 19 | 15 | |
Net assets acquired (net of cash acquired) | (21) | (55) | (256) | |
intercompany loan receipts | 0 | 0 | 0 | |
Other, net | 5 | 1 | 3 | |
Net cash used in investing activities exclusive of vehicle programs | (205) | (225) | (437) | |
Vehicle programs: | ||||
Decrease in program cash | 0 | 0 | ||
Investment In Vehicles | (11,538) | (12,461) | (11,928) | |
Proceeds received on disposition of vehicles | 9,600 | 10,504 | 9,680 | |
Repayments of Related Party Debt | (61) | 0 | 0 | |
Net Cash Used In Investing Activities Of Vehicle Programs | (1,999) | (1,957) | (2,248) | |
Net cash used in investing activities | (2,204) | (2,182) | (2,685) | |
Financing activities | ||||
Proceeds from borrowings | 589 | 894 | 377 | |
Principal payments on borrowings | (602) | (847) | (301) | |
Proceeds from (Repayments of) Short-term Debt | (4) | 4 | (22) | |
Debt financing fees | (9) | (20) | (7) | |
Payments for Repurchase of Common Stock | (210) | (398) | (436) | |
Intercompany loan borrowings | 0 | 0 | 0 | |
Other, net | 1 | 0 | (7) | |
Net cash used in financing activities exclusive of vehicle programs | (235) | (367) | (396) | |
Vehicle programs: | ||||
Proceeds from borrowings | 17,212 | 15,769 | 14,138 | |
Principal payments on borrowings | (17,269) | (15,826) | (13,648) | |
Debt financing fees | (16) | (25) | (22) | |
Net cash provided by financing activities of vehicle programs | (73) | (82) | 468 | |
Net cash provided by (used in) financing activities | (308) | (449) | 72 | |
Effect of changes in exchange rates on cash and cash equivalents, program and restricted cash | 45 | (6) | (50) | |
Net increase (decrease) in cash and cash equivalents, program and restricted cash | 181 | 3 | (36) | |
Parent Company | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 4 | 3 | 4 | 2 |
Net cash provided by (used in) operating activities | 110 | 279 | 103 | |
Investing activities | ||||
Property and equipment additions | 0 | 0 | 0 | |
Proceeds received on asset sales | 0 | 0 | 0 | |
Net assets acquired (net of cash acquired) | 0 | 0 | 0 | |
intercompany loan receipts | 0 | 0 | 0 | |
Other, net | 100 | 118 | 334 | |
Net cash used in investing activities exclusive of vehicle programs | 100 | 118 | 334 | |
Vehicle programs: | ||||
Investment In Vehicles | 0 | 0 | 0 | |
Proceeds received on disposition of vehicles | 0 | 0 | 0 | |
Repayments of Related Party Debt | 0 | |||
Net Cash Used In Investing Activities Of Vehicle Programs | 0 | 0 | 0 | |
Net cash used in investing activities | 100 | 118 | 334 | |
Financing activities | ||||
Proceeds from borrowings | 0 | 0 | 0 | |
Principal payments on borrowings | 0 | 0 | 0 | |
Proceeds from (Repayments of) Short-term Debt | 0 | 0 | 0 | |
Debt financing fees | 0 | 0 | 0 | |
Payments for Repurchase of Common Stock | (210) | (398) | (436) | |
Intercompany loan borrowings | 0 | 0 | 0 | |
Other, net | 1 | 0 | 1 | |
Net cash used in financing activities exclusive of vehicle programs | (209) | (398) | (435) | |
Vehicle programs: | ||||
Proceeds from borrowings | 0 | 0 | 0 | |
Principal payments on borrowings | 0 | 0 | 0 | |
Debt financing fees | 0 | 0 | 0 | |
Net cash provided by financing activities of vehicle programs | 0 | 0 | 0 | |
Net cash provided by (used in) financing activities | (209) | (398) | (435) | |
Effect of changes in exchange rates on cash and cash equivalents, program and restricted cash | 0 | 0 | 0 | |
Net increase (decrease) in cash and cash equivalents, program and restricted cash | 1 | (1) | 2 | |
Subsidiary Issuers | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 14 | 12 | 70 | 210 |
Net cash provided by (used in) operating activities | (89) | (10) | 249 | |
Investing activities | ||||
Property and equipment additions | (49) | (32) | (26) | |
Proceeds received on asset sales | 1 | 7 | 7 | |
Net assets acquired (net of cash acquired) | (1) | 0 | (8) | |
intercompany loan receipts | 0 | 0 | (30) | |
Other, net | 110 | (1) | (127) | |
Net cash used in investing activities exclusive of vehicle programs | 61 | (26) | (184) | |
Vehicle programs: | ||||
Investment In Vehicles | (1) | (9) | (1) | |
Proceeds received on disposition of vehicles | 46 | 31 | 19 | |
Repayments of Related Party Debt | 0 | |||
Net Cash Used In Investing Activities Of Vehicle Programs | 45 | 22 | 18 | |
Net cash used in investing activities | 106 | (4) | (166) | |
Financing activities | ||||
Proceeds from borrowings | 325 | 557 | 375 | |
Principal payments on borrowings | (406) | (525) | (256) | |
Proceeds from (Repayments of) Short-term Debt | 0 | 0 | 0 | |
Debt financing fees | (5) | (15) | (7) | |
Payments for Repurchase of Common Stock | 0 | 0 | 0 | |
Intercompany loan borrowings | 264 | 316 | 0 | |
Other, net | (192) | (385) | (335) | |
Net cash used in financing activities exclusive of vehicle programs | (14) | (52) | (223) | |
Vehicle programs: | ||||
Proceeds from borrowings | 0 | 8 | 0 | |
Principal payments on borrowings | (1) | 0 | 0 | |
Debt financing fees | 0 | 0 | 0 | |
Net cash provided by financing activities of vehicle programs | (1) | 8 | 0 | |
Net cash provided by (used in) financing activities | (15) | (44) | (223) | |
Effect of changes in exchange rates on cash and cash equivalents, program and restricted cash | 0 | 0 | 0 | |
Net increase (decrease) in cash and cash equivalents, program and restricted cash | 2 | (58) | (140) | |
Guarantor Subsidiaries | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 0 | 0 | 0 | 0 |
Net cash provided by (used in) operating activities | 97 | 80 | 146 | |
Investing activities | ||||
Property and equipment additions | (81) | (89) | (98) | |
Proceeds received on asset sales | 0 | 4 | 1 | |
Net assets acquired (net of cash acquired) | (5) | (4) | (9) | |
intercompany loan receipts | 0 | 28 | (96) | |
Other, net | 110 | 0 | 1 | |
Net cash used in investing activities exclusive of vehicle programs | 24 | (61) | (201) | |
Vehicle programs: | ||||
Investment In Vehicles | 0 | (4) | (2) | |
Proceeds received on disposition of vehicles | 0 | 0 | 0 | |
Repayments of Related Party Debt | 0 | |||
Net Cash Used In Investing Activities Of Vehicle Programs | 0 | (4) | (2) | |
Net cash used in investing activities | 24 | (65) | (203) | |
Financing activities | ||||
Proceeds from borrowings | 0 | 0 | 0 | |
Principal payments on borrowings | (2) | (5) | (4) | |
Proceeds from (Repayments of) Short-term Debt | 0 | 0 | 0 | |
Debt financing fees | 0 | 0 | 0 | |
Payments for Repurchase of Common Stock | 0 | 0 | 0 | |
Intercompany loan borrowings | 0 | 0 | 0 | |
Other, net | (110) | 0 | 70 | |
Net cash used in financing activities exclusive of vehicle programs | (112) | (5) | 66 | |
Vehicle programs: | ||||
Proceeds from borrowings | 0 | 0 | 0 | |
Principal payments on borrowings | (9) | (9) | (9) | |
Debt financing fees | 0 | (1) | 0 | |
Net cash provided by financing activities of vehicle programs | (9) | (10) | (9) | |
Net cash provided by (used in) financing activities | (121) | (15) | 57 | |
Effect of changes in exchange rates on cash and cash equivalents, program and restricted cash | 0 | 0 | 0 | |
Net increase (decrease) in cash and cash equivalents, program and restricted cash | 0 | 0 | 0 | |
Non-Guarantor Subsidiaries | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 883 | 705 | 643 | 541 |
Net cash provided by (used in) operating activities | 2,697 | 2,633 | 2,204 | |
Investing activities | ||||
Property and equipment additions | (67) | (69) | (75) | |
Proceeds received on asset sales | 7 | 8 | 7 | |
Net assets acquired (net of cash acquired) | (15) | (51) | (239) | |
intercompany loan receipts | (264) | (316) | 0 | |
Other, net | 5 | 2 | 5 | |
Net cash used in investing activities exclusive of vehicle programs | (334) | (426) | (302) | |
Vehicle programs: | ||||
Decrease in program cash | 0 | 0 | ||
Investment In Vehicles | (11,537) | (12,448) | (11,925) | |
Proceeds received on disposition of vehicles | 9,554 | 10,473 | 9,661 | |
Repayments of Related Party Debt | (61) | |||
Net Cash Used In Investing Activities Of Vehicle Programs | (2,044) | (1,975) | (2,264) | |
Net cash used in investing activities | (2,378) | (2,401) | (2,566) | |
Financing activities | ||||
Proceeds from borrowings | 264 | 337 | 2 | |
Principal payments on borrowings | (194) | (317) | (41) | |
Proceeds from (Repayments of) Short-term Debt | (4) | 4 | (22) | |
Debt financing fees | (4) | (5) | 0 | |
Payments for Repurchase of Common Stock | 0 | 0 | 0 | |
Intercompany loan borrowings | 0 | (28) | 126 | |
Other, net | (185) | (75) | (28) | |
Net cash used in financing activities exclusive of vehicle programs | (123) | (84) | 37 | |
Vehicle programs: | ||||
Proceeds from borrowings | 17,212 | 15,761 | 14,138 | |
Principal payments on borrowings | (17,259) | (15,817) | (13,639) | |
Debt financing fees | (16) | (24) | (22) | |
Net cash provided by financing activities of vehicle programs | (63) | (80) | 477 | |
Net cash provided by (used in) financing activities | (186) | (164) | 514 | |
Effect of changes in exchange rates on cash and cash equivalents, program and restricted cash | 45 | (6) | (50) | |
Net increase (decrease) in cash and cash equivalents, program and restricted cash | 178 | 62 | 102 | |
Eliminations | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 0 | 0 | 0 | $ 0 |
Net cash provided by (used in) operating activities | (167) | (342) | (75) | |
Investing activities | ||||
Property and equipment additions | 0 | 0 | 0 | |
Proceeds received on asset sales | 0 | 0 | 0 | |
Net assets acquired (net of cash acquired) | 0 | 0 | 0 | |
intercompany loan receipts | 264 | 288 | 126 | |
Other, net | (320) | (118) | (210) | |
Net cash used in investing activities exclusive of vehicle programs | (56) | 170 | (84) | |
Vehicle programs: | ||||
Investment In Vehicles | 0 | 0 | 0 | |
Proceeds received on disposition of vehicles | 0 | 0 | 0 | |
Repayments of Related Party Debt | 0 | |||
Net Cash Used In Investing Activities Of Vehicle Programs | 0 | 0 | 0 | |
Net cash used in investing activities | (56) | 170 | (84) | |
Financing activities | ||||
Proceeds from borrowings | 0 | 0 | 0 | |
Principal payments on borrowings | 0 | 0 | 0 | |
Proceeds from (Repayments of) Short-term Debt | 0 | 0 | 0 | |
Debt financing fees | 0 | 0 | 0 | |
Payments for Repurchase of Common Stock | 0 | 0 | 0 | |
Intercompany loan borrowings | (264) | (288) | (126) | |
Other, net | 487 | 460 | 285 | |
Net cash used in financing activities exclusive of vehicle programs | 223 | 172 | 159 | |
Vehicle programs: | ||||
Proceeds from borrowings | 0 | 0 | 0 | |
Principal payments on borrowings | 0 | 0 | 0 | |
Debt financing fees | 0 | 0 | 0 | |
Net cash provided by financing activities of vehicle programs | 0 | 0 | 0 | |
Net cash provided by (used in) financing activities | 223 | 172 | 159 | |
Effect of changes in exchange rates on cash and cash equivalents, program and restricted cash | 0 | 0 | 0 | |
Net increase (decrease) in cash and cash equivalents, program and restricted cash | $ 0 | $ 0 | $ 0 |
Schedule Of Selected Quarterly
Schedule Of Selected Quarterly Financial Data (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Line Items] | |||||||||||
Deferred Income Tax Expense (Benefit) | $ 192 | $ (51) | $ (58) | ||||||||
Net revenues | $ 2,019 | $ 2,752 | $ 2,238 | $ 1,839 | $ 1,879 | $ 2,656 | $ 2,243 | $ 1,881 | |||
Net income (loss) | $ 220 | $ 245 | $ 3 | $ (107) | $ (31) | $ 209 | $ 36 | $ (51) | |||
Basic Net income (loss) (in dollars per share) | $ 2.70 | $ 2.96 | $ 0.04 | $ (1.25) | $ (0.35) | $ 2.32 | $ 0.39 | $ (0.53) | $ 4.32 | $ 1.78 | $ 3.02 |
Basic weighted average shares outstanding | 81.3 | 82.6 | 84 | 85.7 | 87.4 | 90.4 | 93.9 | 96.3 | 83.4 | 92 | 103.4 |
Diluted Net income (loss) (in dollars per share) | $ 2.65 | $ 2.91 | $ 0.04 | $ (1.25) | $ (0.35) | $ 2.28 | $ 0.38 | $ (0.53) | $ 4.25 | $ 1.75 | $ 2.98 |
Diluted weighted average shares outstanding | 82.7 | 84 | 85.2 | 85.7 | 87.4 | 91.8 | 95.1 | 96.3 | 84.8 | 93.3 | 105 |
Provision adjustment due to anticipated repatriation of foreign earnings [Member] | |||||||||||
Income Tax Disclosure [Line Items] | |||||||||||
Deferred Income Tax Expense (Benefit) | $ (104) | ||||||||||
Provision adjustment due to corporate tax rate change [Member] | |||||||||||
Income Tax Disclosure [Line Items] | |||||||||||
Deferred Income Tax Expense (Benefit) | $ 317 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) | 1 Months Ended |
Jan. 31, 2018USD ($) | |
Subsequent Event | |
Subsequent Event [Line Items] | |
Proceeds from Issuance of Preferred Stock, Preference Stock, and Warrants | $ 100 |
Valuation And Qualifying Acc121
Valuation And Qualifying Accounts (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Allowance for Doubtful Accounts | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | $ 38 | $ 34 | $ 34 |
Expensed | 29 | 27 | 24 |
Other Adjustments | 3 | (2) | (3) |
Deductions | (34) | (21) | (21) |
Balance at End of Period | 36 | 38 | 34 |
Tax Valuation Allowance | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | 357 | 351 | 319 |
Expensed | 0 | 17 | 20 |
Other Adjustments | 13 | 3 | 12 |
Deductions | (39) | (14) | 0 |
Balance at End of Period | $ 331 | $ 357 | $ 351 |