Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 30, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-10308 | |
Entity Registrant Name | Avis Budget Group, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 06-0918165 | |
Entity Address, Address Line One | 6 Sylvan Way | |
Entity Address, City or Town | Parsippany, | |
Entity Address, State or Province | NJ | |
Entity Address, Postal Zip Code | 07054 | |
City Area Code | (973) | |
Local Phone Number | 496-4700 | |
Title of 12(b) Security | Common Stock, Par Value $0.01 | |
Trading Symbol | CAR | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 69,858,812 | |
Amendment Flag | false | |
Entity Central Index Key | 0000723612 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 |
CONSOLIDATED CONDENSED STATEMEN
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenues | ||
Revenues | $ 1,372 | $ 1,753 |
Expenses | ||
Operating | 832 | 1,058 |
Vehicle depreciation and lease charges, net | 254 | 459 |
Selling, general and administrative | 182 | 251 |
Vehicle interest, net | 75 | 83 |
Non-vehicle related depreciation and amortization | 68 | 69 |
Interest expense related to corporate debt, net: | ||
Interest expense | 61 | 48 |
Early extinguishment of debt | 129 | 4 |
Restructuring and other related charges | 20 | 44 |
Transaction-related costs, net | 1 | 2 |
Total expenses | 1,622 | 2,018 |
Loss before income taxes | (250) | (265) |
Benefit from income taxes | (80) | (107) |
Net loss | (170) | (158) |
Comprehensive loss | $ (146) | $ (257) |
Loss per share | ||
Basic (in dollars per share) | $ (2.43) | $ (2.16) |
Diluted (in dollars per share) | $ (2.43) | $ (2.16) |
CONSOLIDATED CONDENSED BALANCE
CONSOLIDATED CONDENSED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 576 | $ 692 |
Receivables, net | 786 | 647 |
Other current assets | 506 | 456 |
Total current assets | 1,868 | 1,795 |
Property and equipment, net | 611 | 657 |
Operating lease ROU assets | 2,510 | 2,560 |
Deferred income taxes | 1,348 | 1,198 |
Goodwill | 1,121 | 1,137 |
Other intangibles, net | 750 | 774 |
Other non-current assets | 266 | 244 |
Total assets exclusive of assets under vehicle programs | 8,474 | 8,365 |
Assets under vehicle programs: | ||
Program cash | 61 | 72 |
Vehicles, net | 9,101 | 8,153 |
Receivables from vehicle manufacturers and other | 307 | 281 |
Investment in Avis Budget Rental Car Funding (AESOP) LLC—related party | 666 | 667 |
Total assets under vehicle programs: | 10,135 | 9,173 |
Total assets | 18,609 | 17,538 |
Current liabilities: | ||
Accounts payable and other current liabilities | 2,171 | 2,034 |
Short-term debt and current portion of long-term debt | 19 | 19 |
Total current liabilities | 2,190 | 2,053 |
Long-term debt | 4,264 | 4,191 |
Long-term operating lease liabilities | 2,025 | 2,078 |
Other non-current liabilities | 681 | 731 |
Total liabilities exclusive of liabilities under vehicle programs | 9,160 | 9,053 |
Liabilities under vehicle programs: | ||
Debt | 1,652 | 1,777 |
Debt due to Avis Budget Rental Car Funding (AESOP) LLC—related party | 6,149 | 5,080 |
Deferred income taxes | 1,470 | 1,383 |
Other | 494 | 400 |
Total Liabilities under vehicle programs | 9,765 | 8,640 |
Commitments and contingencies (Note 12) | ||
Stockholders’ equity: | ||
Preferred stock, $0.01 par value—authorized 10 shares; none issued and outstanding, respectively | 0 | 0 |
Common stock, $0.01 par value—authorized 250 shares; issued 137 shares, respectively | 1 | 1 |
Additional paid-in capital | 6,642 | 6,668 |
Accumulated deficit | (1,640) | (1,470) |
Accumulated other comprehensive loss | (163) | (187) |
Treasury stock, at cost— 67 shares, respectively | (5,156) | (5,167) |
Total stockholders’ equity | (316) | (155) |
Total liabilities and stockholders’ equity | $ 18,609 | $ 17,538 |
CONSOLIDATED CONDENSED BALANC_2
CONSOLIDATED CONDENSED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Preferred Stock, Par or Stated Value Per Share | $ 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 or Stated Value Per Share | $ 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 | 67,000,000 | 67,000,000 |
CONSOLIDATED CONDENSED STATEM_2
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Operating activities | ||
Net loss | $ (170) | $ (158) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Vehicle depreciation | 259 | 414 |
Amortization of right-of-use assets | 236 | 231 |
(Gain) loss on sale of vehicles, net | (49) | (11) |
Non-vehicle related depreciation and amortization | 68 | 69 |
Stock-based compensation | 4 | (2) |
Amortization of debt financing fees | 8 | 8 |
Early extinguishment of debt | 129 | 4 |
Net change in assets and liabilities: | ||
Receivables | 24 | 163 |
Income taxes and deferred income taxes | (80) | (112) |
Accounts payable and other current liabilities | 181 | (96) |
Operating lease liabilities | (234) | (230) |
Other, net | (40) | 90 |
Net cash provided by operating activities | 336 | 370 |
Investing activities | ||
Property and equipment additions | (12) | (43) |
Proceeds received on asset sales | 2 | 2 |
Net assets acquired (net of cash acquired) | (4) | (51) |
Net cash used in investing activities exclusive of vehicle programs | (14) | (92) |
Vehicle programs: | ||
Investment in vehicles | (3,032) | (3,751) |
Proceeds received on disposition of vehicles | 1,679 | 2,497 |
Investment in debt securities of Avis Budget Rental Car Funding (AESOP) LLC—related party | (24) | (175) |
Proceeds from debt securities of Avis Budget Rental Car Funding (AESOP) LLC—related party | 25 | 39 |
Net cash used in investing activities of vehicle programs | (1,352) | (1,390) |
Net cash used in investing activities | (1,366) | (1,482) |
Financing activities | ||
Proceeds from long-term borrowings | 1,100 | 184 |
Payments on long-term borrowings | (1,101) | (92) |
Issuance of common stock | 0 | 15 |
Repurchases of common stock | (19) | (118) |
Debt financing fees | (12) | (3) |
Net cash used in financing activities exclusive of vehicle programs | (32) | (14) |
Vehicle programs: | ||
Proceeds from borrowings | 3,481 | 5,461 |
Payments on borrowings | (2,535) | (4,479) |
Debt financing fees | 0 | (6) |
Net cash provided by financing activities of vehicle programs | 946 | 976 |
Net cash provided by financing activities | 914 | 962 |
Effect of changes in exchange rates on cash and cash equivalents, program and restricted cash | (10) | (29) |
Net decrease in cash and cash equivalents, program and restricted cash | (126) | (179) |
Cash and cash equivalents, program and restricted cash, beginning of period | 765 | 900 |
Cash and cash equivalents, program and restricted cash, end of period | $ 639 | $ 721 |
CONSOLIDATED CONDENSED STATEM_3
CONSOLIDATED CONDENSED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Millions, $ in Millions | Total | Cumulative effect of accounting change | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated DeficitCumulative effect of accounting change | Accumulated Other Comprehensive Income (Loss) | Treasury Stock |
Beginning Balance at Dec. 31, 2019 | $ 656 | $ (1) | $ 1 | $ 6,741 | $ (785) | $ (1) | $ (157) | $ (5,144) |
Beginning Balance (in shares) at Dec. 31, 2019 | 137.1 | (63.2) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net loss | (158) | (158) | ||||||
Net current-period other comprehensive income (loss) | (99) | (99) | ||||||
Total comprehensive loss | (257) | |||||||
Net activity related to restricted stock units (in shares) | 0.3 | |||||||
Net activity related to restricted stock units | $ (8) | (79) | $ 71 | |||||
Issuance of common stock (in shares) | 0.4 | |||||||
Issuance of common stock | $ 15 | 15 | ||||||
Repurchases of common stock (in shares) | (5) | |||||||
Repurchases of common stock | (113) | $ (113) | ||||||
Ending Balance at Mar. 31, 2020 | 292 | $ 1 | 6,677 | (944) | (256) | $ (5,186) | ||
Ending Balance (in shares) at Mar. 31, 2020 | 137.1 | (67.5) | ||||||
Beginning Balance at Dec. 31, 2020 | (155) | $ 1 | 6,668 | (1,470) | (187) | $ (5,167) | ||
Beginning Balance (in shares) at Dec. 31, 2020 | 137.1 | (67.3) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net loss | (170) | (170) | ||||||
Net current-period other comprehensive income (loss) | 24 | 24 | ||||||
Total comprehensive loss | $ (146) | |||||||
Net activity related to restricted stock units (in shares) | 0.1 | 0.2 | ||||||
Net activity related to restricted stock units | $ (5) | (26) | $ 21 | |||||
Repurchases of common stock (in shares) | (0.1) | |||||||
Repurchases of common stock | (10) | $ (10) | ||||||
Ending Balance at Mar. 31, 2021 | $ (316) | $ 1 | $ 6,642 | $ (1,640) | $ (163) | $ (5,156) | ||
Ending Balance (in shares) at Mar. 31, 2021 | 137.1 | (67.2) |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation Avis Budget Group, Inc. provides mobility solutions to businesses and consumers worldwide. The accompanying unaudited Consolidated Condensed 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”), and have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission for interim financial reporting. 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 operating results of acquired businesses are included in the accompanying Consolidated Condensed Financial Statements from the dates of acquisition. Differences between the preliminary allocation of purchase price and the final allocation for the Company’s 2020 acquisitions of various licensees were not material. In presenting the Consolidated Condensed Financial Statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”), management makes estimates and assumptions that affect the amounts reported and related disclosures. Estimates, by their nature, are based on judgment and available information. Accordingly, actual results could differ from those estimates. In management’s opinion, the Consolidated Condensed Financial Statements contain all adjustments necessary for a fair presentation of interim results reported. The results of operations reported for interim periods are not necessarily indicative of the results of operations for the entire year or any subsequent interim period. These financial statements should be read in conjunction with the Company’s 2020 Form 10-K. Liquidity and Management’s Plans The continuing cases of COVID-19 and the developments surrounding the pandemic are having a material impact on certain aspects of the Company’s business. Significant events affecting travel and the overall economy have historically had an impact on vehicle rental volumes, with the full extent of the impact generally determined by the length of time the event influences travel decisions as well as general economic conditions. The Company believes the ongoing effects of COVID-19 and resulting economic conditions have had, and will continue to have, an adverse impact on its operations and vehicle rental volumes, and on its financial results and liquidity. The Company cannot assure its assumptions used to estimate its liquidity requirements will be correct because it has never previously experienced such a change in demand, and as a consequence, its ability to be predictive is uncertain. In addition, the duration of the pandemic is uncertain. Therefore, the Company has taken actions to manage its liquidity, including reducing capital expenditures, operating expenses and the number of vehicles in its fleet. The Company has no meaningful corporate debt maturities until 2023. The Company plans to finance the routine Asset Backed Securities (“ABS”) maturities with program cash on hand, available revolving debt capacity, new term note issuances and fleet sales. As a result, based on current operational assumptions, the Company believes it has adequate liquidity beyond the next twelve months. In April 2020, the Company entered into an amendment (the “Amendment”) to its senior credit facilities, consisting of an approximately $1.2 billion term loan maturing in 2027 and a $1.8 billion revolving credit facility maturing in 2023, which remain in place after the Amendment. The Amendment provides for relief from the quarterly-tested leverage covenant contained in the credit agreement governing the senior credit facilities until the end of a specific relief period, including a holiday from such leverage covenant through June 30, 2021, during which time (i) certain negative covenant exceptions are not available to the Company, (ii) pricing on the senior credit facilities is increased, (iii) the Company must comply with a liquidity covenant and additional reporting requirements and (iv) the Company must meet additional conditions to borrow under the revolving credit facility. In February 2021, the Company subsequently amended the credit agreement to permit refinancing of certain existing indebtedness. Summary of Significant Accounting Policies The Company’s significant accounting policies are fully described in Note 2, “Summary of Significant Accounting Policies,” in the 2020 Form 10-K. Cash and cash equivalents, Program cash and Restricted cash. The following table provides a detail of cash and cash equivalents, program and restricted cash reported within the Consolidated Condensed Balance Sheets to the amounts shown in the Consolidated Condensed Statements of Cash Flows. As of March 31, 2021 2020 Cash and cash equivalents $ 576 $ 679 Program cash 61 39 Restricted cash (a) 2 3 Total cash and cash equivalents, program and restricted cash $ 639 $ 721 ________ (a) Included within other current assets. Vehicle Programs. 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. Transaction-related costs, net. Transaction-related costs, net are classified separately in the Consolidated Condensed Statements of Comprehensive Income. 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. The Company records the gain or loss on foreign-currency transactions on certain intercompany loans and the gain or loss on intercompany loan hedges within interest expense related to corporate debt, net. During the three months ended March 31, 2021 and 2020, the Company recorded an immaterial amount and a loss of $5 million, respectively, related to such items. Divestitures. In March 2021, the Company entered into a stock purchase agreement with Urbiz S.A. to sell the Company’s assets in Argentina. Upon completion of the sale, Urbiz S.A. will pay approximately $4 million, plus interest, over two years for the right to operate the Avis and Budget brand. The Company had assets held for sale of $15 million within current and non-current assets and liabilities held for sale of $6 million within non-current liabilities. The Company assessed the fair value of the net assets and recorded a loss of $13 million within restructuring and other related charges during the three months ended March 31, 2021. Argentina’s operations are reported within the Company’s Americas segment. Investments. As of March 31, 2021 and December 31, 2020, the Company had equity method investments with a carrying value of $64 million and $63 million, respectively, which are recorded within other non-current assets. Earnings from the Company’s equity method investments are reported within operating expenses. For the three months ended March 31, 2021 and 2020, the Company recorded an immaterial amount related to its equity method investments. Nonmarketable Equity Securities. As of March 31, 2021 and December 31, 2020, the Company had nonmarketable equity securities with a carrying value of $8 million, respectively, which are recorded within other non-current assets. No adjustments were made to the carrying amounts during the three months ended March 31, 2021 and 2020. Revenues. R evenues are recognized under “Leases (Topic 842),” with the exception of royalty fee revenue derived from the Company’s licensees and revenue related to the Company’s customer loyalty program, which were approximately $40 million and $32 million during the three months ended March 31, 2021 and 2020, respectively. The following table presents the Company’s revenues disaggregated by geography. Three Months Ended 2021 2020 Americas $ 1,080 $ 1,257 Europe, Middle East and Africa 203 357 Asia and Australasia 89 139 Total revenues $ 1,372 $ 1,753 The following table presents the Company’s revenues disaggregated by brand. Three Months Ended 2021 2020 Avis $ 717 $ 985 Budget 524 619 Other 131 149 Total revenues $ 1,372 $ 1,753 ________ Other includes Zipcar and other operating brands. Adoption of New Accounting Pronouncements Simplifying the Accounting for Income Taxes On January 1, 2021, as the result of a new accounting pronouncement, the Company adopted ASU 2019-12, “Simplifying the Accounting for Income Taxes,” which simplifies the accounting for income taxes by removing certain exceptions and improving the application of existing guidance. The adoption of this accounting pronouncement did not have a material impact on the Company's Consolidated Financial Statements. Compensation—Retirement Benefits—Defined Benefit Plans On January 1, 2021, as the result of a new accounting pronouncement, the Company adopted ASU 2018-14, “Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans,” which adds, removes, and clarifies disclosure requirements related to defined benefit pension and other postretirement plans. These changes are part of the FASB’s disclosure framework project, which the Board launched in 2014 to improve the effectiveness of disclosures in notes to financial statements. The adoption of this accounting pronouncement did not have a material impact on the Company's Consolidated Financial |
Leases
Leases | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Leases | Leases Lessor The following table presents the Company’s lease revenues disaggregated by geography. Three Months Ended 2021 2020 Americas $ 1,054 $ 1,244 Europe, Middle East and Africa 192 342 Asia and Australasia 86 135 Total lease revenues $ 1,332 $ 1,721 The following table presents the Company’s lease revenues disaggregated by brand. Three Months Ended 2021 2020 Avis $ 690 $ 968 Budget 516 608 Other 126 145 Total lease revenues $ 1,332 $ 1,721 _______ Other includes Zipcar and other operating brands. Lessee The Company has operating and finance leases for rental locations, corporate offices, vehicle rental fleet and equipment. Many of the Company’s operating leases for rental locations contain concession agreements with various airport authorities that allow the Company to conduct its vehicle 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, some of which are subject to minimum annual guaranteed amounts. Concession fees other than minimum annual guaranteed amounts are not included in the measurement of operating lease Right of Use (“ROU”) assets and operating lease liabilities, and are recorded as variable lease expense as incurred. The Company’s operating leases for rental locations often also require the Company to pay or reimburse operating expenses. The components of lease expense are as follows: Three Months Ended 2021 2020 Property leases (a) Operating lease expense $ 139 $ 185 Variable lease expense 54 36 Total property lease expense $ 193 $ 221 __________ (a) Primarily included in operating expense and includes $19 million of minimum annual guaranteed rent in excess of concession fees as defined in our rental concession agreement for the three months ended March 31, 2021. Supplemental balance sheet information related to leases is as follows: As of As of Property leases Operating lease ROU assets $ 2,510 $ 2,560 Short-term operating lease liabilities (a) $ 519 $ 514 Long-term operating lease liabilities 2,025 2,078 Operating lease liabilities $ 2,544 $ 2,592 Weighted average remaining lease term 8.3 years 8.4 years Weighted average discount rate 3.85 % 3.86 % _________ (a) Included in Accounts payable and other current liabilities. Supplemental cash flow information related to leases is as follows: Three Months Ended 2021 2020 Cash payments for lease liabilities within operating activities: Property operating leases $ 202 $ 170 Non-cash activities - increase (decrease) in ROU assets in exchange for lease liabilities: Property operating leases 169 296 |
Leases | Leases Lessor The following table presents the Company’s lease revenues disaggregated by geography. Three Months Ended 2021 2020 Americas $ 1,054 $ 1,244 Europe, Middle East and Africa 192 342 Asia and Australasia 86 135 Total lease revenues $ 1,332 $ 1,721 The following table presents the Company’s lease revenues disaggregated by brand. Three Months Ended 2021 2020 Avis $ 690 $ 968 Budget 516 608 Other 126 145 Total lease revenues $ 1,332 $ 1,721 _______ Other includes Zipcar and other operating brands. Lessee The Company has operating and finance leases for rental locations, corporate offices, vehicle rental fleet and equipment. Many of the Company’s operating leases for rental locations contain concession agreements with various airport authorities that allow the Company to conduct its vehicle 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, some of which are subject to minimum annual guaranteed amounts. Concession fees other than minimum annual guaranteed amounts are not included in the measurement of operating lease Right of Use (“ROU”) assets and operating lease liabilities, and are recorded as variable lease expense as incurred. The Company’s operating leases for rental locations often also require the Company to pay or reimburse operating expenses. The components of lease expense are as follows: Three Months Ended 2021 2020 Property leases (a) Operating lease expense $ 139 $ 185 Variable lease expense 54 36 Total property lease expense $ 193 $ 221 __________ (a) Primarily included in operating expense and includes $19 million of minimum annual guaranteed rent in excess of concession fees as defined in our rental concession agreement for the three months ended March 31, 2021. Supplemental balance sheet information related to leases is as follows: As of As of Property leases Operating lease ROU assets $ 2,510 $ 2,560 Short-term operating lease liabilities (a) $ 519 $ 514 Long-term operating lease liabilities 2,025 2,078 Operating lease liabilities $ 2,544 $ 2,592 Weighted average remaining lease term 8.3 years 8.4 years Weighted average discount rate 3.85 % 3.86 % _________ (a) Included in Accounts payable and other current liabilities. Supplemental cash flow information related to leases is as follows: Three Months Ended 2021 2020 Cash payments for lease liabilities within operating activities: Property operating leases $ 202 $ 170 Non-cash activities - increase (decrease) in ROU assets in exchange for lease liabilities: Property operating leases 169 296 |
Leases | Leases Lessor The following table presents the Company’s lease revenues disaggregated by geography. Three Months Ended 2021 2020 Americas $ 1,054 $ 1,244 Europe, Middle East and Africa 192 342 Asia and Australasia 86 135 Total lease revenues $ 1,332 $ 1,721 The following table presents the Company’s lease revenues disaggregated by brand. Three Months Ended 2021 2020 Avis $ 690 $ 968 Budget 516 608 Other 126 145 Total lease revenues $ 1,332 $ 1,721 _______ Other includes Zipcar and other operating brands. Lessee The Company has operating and finance leases for rental locations, corporate offices, vehicle rental fleet and equipment. Many of the Company’s operating leases for rental locations contain concession agreements with various airport authorities that allow the Company to conduct its vehicle 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, some of which are subject to minimum annual guaranteed amounts. Concession fees other than minimum annual guaranteed amounts are not included in the measurement of operating lease Right of Use (“ROU”) assets and operating lease liabilities, and are recorded as variable lease expense as incurred. The Company’s operating leases for rental locations often also require the Company to pay or reimburse operating expenses. The components of lease expense are as follows: Three Months Ended 2021 2020 Property leases (a) Operating lease expense $ 139 $ 185 Variable lease expense 54 36 Total property lease expense $ 193 $ 221 __________ (a) Primarily included in operating expense and includes $19 million of minimum annual guaranteed rent in excess of concession fees as defined in our rental concession agreement for the three months ended March 31, 2021. Supplemental balance sheet information related to leases is as follows: As of As of Property leases Operating lease ROU assets $ 2,510 $ 2,560 Short-term operating lease liabilities (a) $ 519 $ 514 Long-term operating lease liabilities 2,025 2,078 Operating lease liabilities $ 2,544 $ 2,592 Weighted average remaining lease term 8.3 years 8.4 years Weighted average discount rate 3.85 % 3.86 % _________ (a) Included in Accounts payable and other current liabilities. Supplemental cash flow information related to leases is as follows: Three Months Ended 2021 2020 Cash payments for lease liabilities within operating activities: Property operating leases $ 202 $ 170 Non-cash activities - increase (decrease) in ROU assets in exchange for lease liabilities: Property operating leases 169 296 |
Restructuring and Other Related
Restructuring and Other Related Charges | 3 Months Ended |
Mar. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Related Charges | Restructuring and Other Related Charges Restructuring During first quarter 2021, the Company initiated a global restructuring plan to focus on cost discipline by reviewing headcounts, facilities and contractor agreements. The Company is transforming its business as it prepares to exit the COVID-19 crisis by controlling fixed costs and matching variable costs to demand (“T21”). During the three months ended March 31, 2021, as part of this process, the Company formally communicated the termination of employment to approximately 80 employees, and as of March 31, 2021, the Company terminated approximately 60 of these employees. The Company expects further restructuring expense of approximately $55 million related to this initiative to be incurred in 2021. During first quarter 2020, the Company initiated a global restructuring plan to reduce operating costs, such as headcount and facilities, due to declining reservations and revenue resulting from the COVID-19 outbreak (“2020 Optimization Plan”). The Company expects no further restructuring expense related to this initiative. The following tables summarize the changes to our restructuring-related liabilities and identifies the amounts recorded within the Company’s reporting segments for restructuring charges and corresponding payments and utilizations: Americas International Total Balance as of January 1, 2021 $ 3 $ 6 $ 9 Restructuring expense: T21 1 6 7 Restructuring payment/utilization: T21 (1) (4) (5) 2020 Optimization Plan (2) (2) (4) Balance as of March 31, 2021 $ 1 $ 6 $ 7 Personnel Facility Other (a) Total Balance as of January 1, 2021 $ 4 $ 2 $ 3 $ 9 Restructuring expense: T21 5 2 — 7 Restructuring payment/utilization: T21 (3) (2) — (5) 2020 Optimization Plan (3) — (1) (4) Balance as of March 31, 2021 $ 3 $ 2 $ 2 $ 7 __________ (a) Includes expenses primarily related to the disposition of vehicles. Other Related Charges Limited Voluntary Opportunity Plan (“LVOP”) During 2020, the Company offered a voluntary termination program to certain employees in 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 three months ended March 31, 2020, the Company recorded other related charges of approximately $15 million in connection with the LVOP. Officer Separation Costs In March 2020, the Company announced the departure of Michael K. Tucker as Executive Vice President, General Counsel effective March 27, 2020. In connection with Mr. Tucker’s separation, the Company recorded other related charges of approximately $2 million for the three months ended March 31, 2020. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table sets forth the computation of basic and diluted earnings per share (“EPS”) (shares in millions): Three Months Ended 2021 2020 Net loss for basic and diluted EPS $ (170) $ (158) Basic weighted average shares outstanding 69.9 72.9 Non-vested stock (a) — — Diluted weighted average shares outstanding 69.9 72.9 Loss per share: Basic $ (2.43) $ (2.16) Diluted $ (2.43) $ (2.16) __________ (a) As the Company incurred a net loss for the three months ended March 31, 2021 and 2020, 1.1 million and 1.3 million non-vested stock awards, respectively, have an anti-dilutive effect and therefore are excluded from the computation of diluted weighted average shares outstanding. |
Other Current Assets
Other Current Assets | 3 Months Ended |
Mar. 31, 2021 | |
Assets, Current [Abstract] | |
Other Current Assets | Other Current Assets Other current assets consisted of: As of As of December 31, 2020 Prepaid expenses $ 204 $ 161 Sales and use taxes 139 147 Other 163 148 Other current assets $ 506 $ 456 |
Intangible Assets
Intangible Assets | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets Intangible assets consisted of: As of March 31, 2021 As of December 31, 2020 Gross Accumulated Net Gross Accumulated Net Amortized Intangible Assets License agreements $ 275 $ 159 $ 116 $ 280 $ 151 $ 129 Customer relationships 261 198 63 268 196 72 Other 52 33 19 54 33 21 Total $ 588 $ 390 $ 198 $ 602 $ 380 $ 222 Unamortized Intangible Assets Goodwill $ 1,121 $ 1,137 Trademarks $ 552 $ 552 For the three months ended March 31, 2021 and 2020, amortization expense related to amortizable intangible assets was approximately $18 million and $13 million, respectively. Based on the Company’s amortizable intangible assets at March 31, 2021, the Company expects amortization expense of approximately $40 million for the remainder of 2021, $34 million for 2022, $25 million for 2023, $22 million for 2024, $17 million for 2025 and $15 million for 2026, excluding effects of currency exchange rates. |
Vehicle Rental Activities
Vehicle Rental Activities | 3 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Vehicle Rental Activities | Vehicle Rental Activities The components of vehicles, net within assets under vehicle programs were as follows: As of As of March 31, December 31, 2021 2020 Rental vehicles $ 10,251 $ 9,210 Less: Accumulated depreciation (1,288) (1,337) 8,963 7,873 Vehicles held for sale 138 280 Vehicles, net $ 9,101 $ 8,153 The components of vehicle depreciation and lease charges, net are summarized below: Three Months Ended 2021 2020 Depreciation expense $ 259 $ 414 Lease charges 44 56 (Gain) loss on sale of vehicles, net (49) (11) Vehicle depreciation and lease charges, net $ 254 $ 459 At March 31, 2021 and 2020, the Company had payables related to vehicle purchases included in liabilities under vehicle programs - other of $344 million and $240 million, respectively, and receivables related to vehicle sales included in assets under vehicle programs - receivables from vehicle manufacturers and other of $195 million and $491 million, respectively. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesThe Company’s effective tax rate for the three months ended March 31, 2021 and 2020 were benefits of 32.0% and 40.4%, respectively. Such rates differed from the Federal Statutory rate of 21.0% primarily due to foreign taxes on our International operations and state taxes. |
Accounts Payable and Other Curr
Accounts Payable and Other Current Liabilities | 3 Months Ended |
Mar. 31, 2021 | |
Accounts Payable and Accrued Liabilities, Current [Abstract] | |
Accounts Payable and Other Current Liabilities | Accounts Payable and Other Current Liabilities Accounts payable and other current liabilities consisted of: As of As of March 31, December 31, 2021 2020 Short-term operating lease liabilities $ 519 $ 514 Accounts payable 458 394 Accrued sales and use taxes 214 215 Public liability and property damage insurance liabilities – current 166 162 Deferred lease revenues – current 151 70 Accrued payroll and related 136 117 Accrued advertising and marketing 124 122 Other 403 440 Accounts payable and other current liabilities $ 2,171 $ 2,034 |
Long-term Corporate Debt and Bo
Long-term Corporate Debt and Borrowing Arrangements | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Long-term Corporate Debt and Borrowing Arrangements | Long-term Corporate Debt and Borrowing Arrangements Long-term corporate debt and borrowing arrangements consisted of: As of As of Maturity March 31, December 31, 2021 2020 6.375% Senior Notes April 2024 $ — $ 350 4.125% euro-denominated Senior Notes November 2024 351 366 5.250% Senior Notes March 2025 235 375 4.500% euro-denominated Senior Notes May 2025 293 305 10.500% Senior Secured Notes May 2025 — 487 4.750% euro-denominated Senior Notes January 2026 410 428 5.750% Senior Notes July 2027 725 724 4.750% Senior Notes April 2028 500 — 5.375% Senior Notes March 2029 600 — Floating Rate Term Loan (a) August 2027 1,196 1,199 Other (b) 22 24 Deferred financing fees (49) (48) Total 4,283 4,210 Less: Short-term debt and current portion of long-term debt 19 19 Long-term debt $ 4,264 $ 4,191 __________ (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. As of March 31, 2021, the floating rate term loan due 2027 bears interest at one-month LIBOR plus 225 basis points, for an aggregate rate of 2.36%. The Company has entered into a swap to hedge $700 million of its interest rate exposure related to the floating rate term loan at an aggregate rate of 4.58%. (b) Primarily includes finance leases which are secured by liens on the related assets. In March 2021, the Company issued $600 million of 5.375% Senior Notes due March 2029, at par, with interest paid semiannually. Net proceeds, together with cash on hand, were used to redeem all of the outstanding 10.5% Senior Secured Notes due 2025 for $599 million plus accrued interest. In March 2021, the Company issued $500 million of 4.75% Senior Notes due March 2028, at par, with interest paid semiannually. Net proceeds, together with cash on hand, were used to redeem all of the outstanding 6.375% Senior Notes due 2024 for $356 million plus accrued interest and a portion of its outstanding 5.25% Senior Notes due 2025 for $142 million plus accrued interest. The 5.375% and 4.75% notes are guaranteed on a senior unsecured basis by the Company and certain of the Company’s subsidiaries. Committed Credit Facilities and Available Funding Arrangements At March 31, 2021, the committed corporate credit facilities available to the Company and/or its subsidiaries were as follows: Total Outstanding Letters of Credit Issued Available Senior revolving credit facility maturing 2023 (a) $ 1,800 $ — $ 1,230 $ 570 __________ (a) The senior revolving credit facility bears interest at one-month LIBOR plus 250 basis points and is part of the Company’s senior credit facilities, which include the floating rate term loan and the senior revolving credit facility, and which are secured by pledges of capital stock of certain subsidiaries of the Company, liens on substantially all of the Company’s intellectual property and certain other real and personal property. 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 which has been amended to provide a holiday from such leverage covenant through June 30, 2021 (See Note 1 – Basis of Presentation). As of March 31, 2021, the Company was in compliance with the financial covenants governing its indebtedness. |
Debt Under Vehicle Programs and
Debt Under Vehicle Programs and Borrowing Arrangements | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt Under Vehicle Programs and Borrowing Arrangements | 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 As of March 31, December 31, 2021 2020 Americas - Debt due to Avis Budget Rental Car Funding $ 6,181 $ 5,116 Americas - Debt borrowings 499 509 International - Debt borrowings 1,020 1,115 International - Finance leases 140 162 Deferred financing fees (a) (39) (45) Total $ 7,801 $ 6,857 __________ (a) Deferred financing fees related to Debt due to Avis Budget Rental Car Funding as of March 31, 2021 and December 31, 2020 were $32 million and $36 million, respectively. 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 March 31, 2021. Debt under Vehicle Programs (a) Within 1 year (b) $ 1,858 Between 1 and 2 years (c) 2,171 Between 2 and 3 years (d) 1,253 Between 3 and 4 years 1,598 Between 4 and 5 years 960 Thereafter — Total $ 7,840 __________ (a) Vehicle-backed debt primarily represents asset-backed securities. (b) Includes $0.4 billion of bank and bank-sponsored facilities. (c) Includes $0.9 billion of bank and bank-sponsored facilities. (d) Includes $0.1 billion of bank and bank-sponsored facilities. Committed Credit Facilities and Available Funding Arrangements As of March 31, 2021, available funding under the Company’s vehicle programs, including related party debt due to Avis Budget Rental Car Funding, consisted of: Total Capacity (a) Outstanding Borrowings (b) Available Americas - Debt due to Avis Budget Rental Car Funding $ 9,011 $ 6,181 $ 2,830 Americas - Debt borrowings 746 499 247 International - Debt borrowings 2,713 1,020 1,693 International - Finance leases 204 140 64 Total $ 12,674 $ 7,840 $ 4,834 __________ (a) Capacity is subject to maintaining sufficient assets to collateralize debt. (b) The outstanding debt is collateralized by vehicles and related assets of $7.4 billion for Americas - Debt due to Avis Budget Rental Car Funding; $0.7 billion for Americas - Debt borrowings; $1.2 billion for International - Debt borrowings; and $0.2 billion for International - Finance leases. 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 March 31, 2021, the Company is not aware of any instances of non-compliance with any of the financial covenants contained in the debt agreements under its vehicle-backed funding programs. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies 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 state court trials in Georgia, the Company was found liable for damages in two cases brought by plaintiffs who were 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 fourth quarter 2019, the Company appealed both verdicts resulting in a reversal of the judgments rendered. The Georgia Supreme Court granted the plaintiffs’ application to review the appellate court’s reversal of the judgements entered at the trial court. The Georgia Supreme Court heard oral arguments in December 2020 and on May 3, 2021 issued a decision affirming the appellate court’s judgments. Following the issuance of this decision, plaintiffs have the ability to file a motion for reconsideration. The Company has recognized a liability related to these cases, net of recoverable insurance proceeds, of approximately $12 million. The Company is currently involved, and in the future may be involved, in claims, legal proceedings, including class actions, 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 current legal proceedings in which it is reasonably possible that a loss may be incurred could, in the aggregate, be up to approximately $40 million in excess of amounts accrued as of March 31, 2021. 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 $6.4 billion of vehicles from manufacturers over the next 12 months, a $2.3 billion decrease compared to December 31, 2020, 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. Concentrations Concentrations of credit risk at March 31, 2021 include (i) risks related to the Company’s repurchase and guaranteed depreciation agreements with domestic and foreign car manufacturers, 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 $25 million and $15 million, respectively, related to certain contingent, income tax and other corporate liabilities assumed by Realogy and Wyndham in connection with their disposition. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Share Repurchases The Company’s Board of Directors has authorized the repurchase of up to $1.8 billion of its common stock under a plan originally approved in 2013 and subsequently expanded, most recently in August 2019. During the first quarter of 2021, the Company has repurchased approximately 0.1 million shares of common stock at a cost of approximately $10 million under the program. As of March 31, 2021, approximately $66 million of authorization remains available to repurchase common stock under this plan. Share Issuances On February 10, 2020, the Company announced it had appointed a new Chairman of the Board of Directors and in connection with this appointment, the new Chairman purchased an aggregate $15 million of unregistered shares of the Company’s common stock at a price per share equal to the closing price of the Company’s common stock on February 7, 2020. Total Comprehensive Income (Loss) Comprehensive income (loss) consists of net income (loss) and other gains and losses affecting stockholders’ equity that, under GAAP, are excluded from net income (loss). The components of other comprehensive income (loss) were as follows: Three Months Ended 2021 2020 Net loss $ (170) $ (158) Other comprehensive income (loss): Currency translation adjustments (net of tax of $(12) and $(4), respectively) (14) (83) Net unrealized gain (loss) on cash flow hedges (net of tax of $3 and $6, respectively) 35 (18) Minimum pension liability adjustment (net of tax of $0 and $0, respectively) 3 2 24 (99) Comprehensive loss $ (146) $ (257) __________ Currency translation adjustments exclude income taxes related to indefinite investments in foreign subsidiaries. Accumulated Other Comprehensive Income (Loss) The components of accumulated other comprehensive income (loss) were as follows: Currency Net Unrealized Gains (Losses) on Cash Flow Hedges (a) Minimum Pension Liability Adjustment (b) Accumulated Balance, January 1, 2021 $ 40 $ (51) $ (176) $ (187) Other comprehensive income (loss) before reclassifications (14) 32 1 19 Amounts reclassified from accumulated other comprehensive income (loss) — 3 2 5 Net current-period other comprehensive income (loss) (14) 35 3 24 Balance, March 31, 2021 $ 26 $ (16) $ (173) $ (163) Balance, January 1, 2020 $ 9 $ (20) $ (146) $ (157) Other comprehensive income (loss) before reclassifications (83) (18) 1 (100) Amounts reclassified from accumulated other comprehensive income (loss) — — 1 1 Net current-period other comprehensive income (loss) (83) (18) 2 (99) Balance, March 31, 2020 $ (74) $ (38) $ (144) $ (256) __________ 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 and include a $47 million gain, net of tax, as of March 31, 2021 related to the Company’s hedge of its net investment in euro-denominated foreign operations (see Note 15–Financial Instruments). (a) For the three months ended March 31, 2021, the amount reclassified from accumulated other comprehensive income (loss) into corporate interest expense was $1 million ($0 million, net of tax). For the three months ended March 31, 2021, the amount reclassified from accumulated other comprehensive income (loss) into vehicle interest expense was $4 million ($3 million, net of tax). (b) For the three months ended March 31, 2021 and 2020, amounts reclassified from accumulated other comprehensive income (loss) into selling, general and administrative expenses were $3 million ($2 million, net of tax) and $2 million ($1 million, net of tax), respectively.. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Company recorded stock-based compensation expense of $4 million and $(2) million ($3 million and $(1) million, net of tax) during the three months ended March 31, 2021 and 2020, respectively. In June 2020, the Company granted market-based restricted stock units (“RSUs”) that vest based on absolute stock price attainment. The grant date fair value of this award is estimated using a Monte Carlo simulation model. The weighted average assumptions used in the model are as follows: Expected volatility of stock price 91% Risk-free interest rate 0.18% Valuation period 3 years Dividend yield —% The activity related to RSUs consisted of (in thousands of shares): Number of Shares Weighted Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value Time-based RSUs Outstanding at January 1, 2021 1,070 $ 27.47 Granted (a) 240 63.12 Vested (b) (375) 30.05 Forfeited (7) 25.35 Outstanding and expected to vest at March 31, 2021 (c) 928 $ 35.66 1.3 $ 67 Performance-based and market-based RSUs Outstanding at January 1, 2021 988 $ 32.41 Granted (a) 236 62.27 Vested (b) — — Forfeited (272) 48.72 Outstanding at March 31, 2021 952 $ 35.14 2.0 $ 69 Outstanding and expected to vest at March 31, 2021 (c) 203 $ 54.59 2.8 $ 15 __________ (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. The weighted-average fair value of time-based RSUs and performance-based and market-based RSUs granted during the three months ended March 31, 2020 was $21.67 and $21.09, respectively. (b) The total fair value of RSUs vested during March 31, 2021 and 2020 was $11 million and $17 million, respectively. (c) Aggregate unrecognized compensation expense related to time-based RSUs and performance-based and market-based RSUs amounted to $39 million and will be recognized over a weighted average vesting period of 1.6 years. |
Financial Instruments
Financial Instruments | 3 Months Ended |
Mar. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments | Financial Instruments Derivative Instruments and Hedging Activities Currency Risk. The Company uses currency exchange contracts to manage its exposure to changes in currency exchange rates associated with certain of 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 estimated net amount of existing gains or losses the Company expects to reclassify from accumulated other comprehensive income (loss) to earnings for cash flow and net investment hedges over the next 12 months is not material. Interest Rate Risk. The Company uses various hedging strategies including interest rate swaps and interest rate caps to create what it deems an appropriate mix of fixed and floating rate assets and liabilities. The Company uses interest rate swaps and interest rate caps to manage the risk related to its floating rate corporate debt and its floating rate vehicle-backed debt. The Company records the changes in the fair value of its cash flow hedges to other comprehensive income (loss), net of tax, and subsequently reclassifies these amounts into earnings in the period during which the hedged transaction affects earnings and is presented in the same income statement line item as the earnings effect of the hedged item. The Company records the gains or losses related to freestanding derivatives, which are not designated as a hedge for accounting purposes, currently in earnings and are presented in the same line of the income statement expected for the hedged item. The Company estimates that approximately $20 million of losses currently recorded in accumulated other comprehensive income (loss) will be recognized in 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 earnings and are presented in the same line of the income statement expected for the hedged item. The Company held derivative instruments with absolute notional values as follows: As of March 31, 2021 Foreign exchange contracts $ 1,711 Interest rate caps (a) 8,686 Interest rate swaps 1,950 __________ (a) Represents $5.8 billion of interest rate caps sold, partially offset by approximately $2.8 billion of interest rate caps purchased. These amounts exclude $3.0 billion of interest rate caps purchased by the Company’s Avis Budget Rental Car Funding subsidiary as it is not consolidated by the Company. Estimated fair values (Level 2) of derivative instruments were as follows: As of March 31, 2021 As of December 31, 2020 Fair Value, Fair Value, Fair Value, Fair Value, Derivatives designated as hedging instruments Interest rate swaps (a) $ 6 $ 43 $ — $ 69 Derivatives not designated as hedging instruments Foreign exchange contracts (b) 16 11 3 11 Interest rate caps (c) 1 1 — — Total $ 23 $ 55 $ 3 $ 80 __________ 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 13–Stockholders’ Equity. (a) Included in other non-current assets or other non-current liabilities. (b) Included in other current assets or other current liabilities. (c) Included in assets under vehicle programs or liabilities under vehicle programs. The effects of derivatives recognized in the Company’s Consolidated Condensed Financial Statements were as follows: Three Months Ended 2021 2020 Derivatives designated as hedging instruments (a) Interest rate swaps (b) $ 35 $ (18) Euro-denominated notes (c) 33 11 Derivatives not designated as hedging instruments (d) Foreign exchange contracts (e) (8) 27 Interest rate swap (f) (1) — Commodity contracts (g) — (7) Total $ 59 $ 13 __________ (a) Recognized, net of tax, as a component of other comprehensive income (loss) within stockholders’ equity. (b) Classified as a net unrealized gain (loss) on cash flow hedges in accumulated other comprehensive income (loss). Refer to Note 13–Stockholders’ Equity for amounts reclassified from accumulated other comprehensive income into earnings. (c) Classified as a net investment hedge within currency translation adjustment in accumulated other comprehensive income (loss). (d) Gains (losses) related to derivative instruments are expected to be largely offset by (losses) gains on the underlying exposures being hedged. (e) For the three months ended March 31, 2021, included a $7 million loss in interest expense and a $1 million loss in operating expense. For the three months ended March 31, 2020, included $28 million gain in interest expense and a $1 million loss in operating expense. (f) Included primarily in vehicle interest, net. (g) Included in operating expense. Debt Instruments The carrying amounts and estimated fair values (Level 2) of debt instruments were as follows: As of March 31, 2021 As of December 31, 2020 Carrying Estimated Carrying Estimated Corporate debt Short-term debt and current portion of long-term debt $ 19 $ 19 $ 19 $ 18 Long-term debt 4,264 4,408 4,191 4,337 Debt under vehicle programs Vehicle-backed debt due to Avis Budget Rental Car Funding $ 6,149 $ 6,429 $ 5,080 $ 5,317 Vehicle-backed debt 1,649 1,668 1,775 1,796 Interest rate swaps and interest rate caps (a) 3 3 2 2 __________ (a) Derivatives in a liability position. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company’s chief operating decision-maker assesses performance and allocates resources based upon the separate financial information from each of 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 revenues and “Adjusted EBITDA,” which the Company defines as income (loss) from continuing operations before non-vehicle related depreciation and amortization, any impairment charges, restructuring and other related charges, early extinguishment of debt costs, non-vehicle related interest, transaction-related costs, net, charges for unprecedented personal-injury and other legal matters, non-operational charges related to shareholder activist activity, which include third party advisory, legal and other professional service fees, gain on sale of equity method investment in China, COVID-19 charges and income taxes. COVID-19 charges include unusual, direct and incremental costs due to the COVID-19 pandemic such as minimum annual guaranteed rent in excess of concession fees for the period, overflow parking for idle vehicles and related shuttling costs, incremental cleaning supplies to sanitize vehicles and facilities, and losses associated with vehicles damaged in overflow parking lots, net of insurance proceeds. The Company’s presentation of Adjusted EBITDA may not be comparable to similarly-titled measures used by other companies. Three Months Ended March 31, 2021 2020 Revenues Adjusted EBITDA Revenues Adjusted EBITDA Americas $ 1,080 $ 108 $ 1,257 $ (30) International 292 (50) 496 (40) Corporate and Other (a) — (11) — (17) Total Company $ 1,372 $ 47 $ 1,753 $ (87) Reconciliation of Adjusted EBITDA to income (loss) before income taxes 2021 2020 Adjusted EBITDA $ 47 $ (87) Less: Non-vehicle related depreciation and amortization 68 69 Interest expense related to corporate debt, net: Interest expense 61 48 Early extinguishment of debt 129 4 Restructuring and other related charges 20 44 COVID-19 charges (b) 18 7 Transaction-related costs, net 1 2 Non-operational charges related to shareholder activist activity (c) — 4 Loss before income taxes $ (250) $ (265) __________ (a) Includes unallocated corporate overhead which is not attributable to a particular segment. (b) For three months ended March 31, 2021 consists of $17 million within operating expenses and $1 million within selling, general and administrative expenses, primarily consisting of $19 million of minimum annual guaranteed rent in excess of concession fees, $5 million of other charges and $(6) million associated with vehicles damaged in overflow parking lots, net of insurance proceeds. For the three months ended March 31, 2020, consists of $7 million within operating expenses, primarily consisting of $5 million associated with vehicles damaged in overflow parking lots, net of insurance proceeds and $2 million of incremental cleaning supplies to sanitize vehicles and facilities, and over flow parking. (c) Reported within selling, general and administrative expenses. Since December 31, 2020, there have been no significant changes in segment assets exclusive of assets under vehicle programs. As of March 31, 2021 and December 31, 2020, Americas’ segment assets under vehicle programs were approximately $8.2 billion and $7.2 billion, respectively, and International segment assets under vehicle programs were approximately $1.9 billion and $2.0 billion, respectively. The changes in assets under vehicle programs is primarily due to the increase in the size of our vehicle rental fleet to meet increase in rental demand. * * * * |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation Avis Budget Group, Inc. provides mobility solutions to businesses and consumers worldwide. The accompanying unaudited Consolidated Condensed 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”), and have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission for interim financial reporting. 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 operating results of acquired businesses are included in the accompanying Consolidated Condensed Financial Statements from the dates of acquisition. Differences between the preliminary allocation of purchase price and the final allocation for the Company’s 2020 acquisitions of various licensees were not material. In presenting the Consolidated Condensed Financial Statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”), management makes estimates and assumptions that affect the amounts reported and related disclosures. Estimates, by their nature, are based on judgment and available information. Accordingly, actual results could differ from those estimates. In management’s opinion, the Consolidated Condensed Financial Statements contain all adjustments necessary for a fair presentation of interim results reported. The results of operations reported for interim periods are not necessarily indicative of the results of operations for the entire year or any subsequent interim period. These financial statements should be read in conjunction with the Company’s 2020 Form 10-K. |
Liquidity and Management Plans | Liquidity and Management’s Plans The continuing cases of COVID-19 and the developments surrounding the pandemic are having a material impact on certain aspects of the Company’s business. Significant events affecting travel and the overall economy have historically had an impact on vehicle rental volumes, with the full extent of the impact generally determined by the length of time the event influences travel decisions as well as general economic conditions. The Company believes the ongoing effects of COVID-19 and resulting economic conditions have had, and will continue to have, an adverse impact on its operations and vehicle rental volumes, and on its financial results and liquidity. The Company cannot assure its assumptions used to estimate its liquidity requirements will be correct because it has never previously experienced such a change in demand, and as a consequence, its ability to be predictive is uncertain. In addition, the duration of the pandemic is uncertain. Therefore, the Company has taken actions to manage its liquidity, including reducing capital expenditures, operating expenses and the number of vehicles in its fleet. The Company has no meaningful corporate debt maturities until 2023. The Company plans to finance the routine Asset Backed Securities (“ABS”) maturities with program cash on hand, available revolving debt capacity, new term note issuances and fleet sales. As a result, based on current operational assumptions, the Company believes it has adequate liquidity beyond the next twelve months. |
Cash and cash equivalents | Cash and cash equivalents, Program cash and Restricted cash. The following table provides a detail of cash and cash equivalents, program and restricted cash reported within the Consolidated Condensed Balance Sheets to the amounts shown in the Consolidated Condensed Statements of Cash Flows. |
Vehicle Programs | Vehicle Programs. 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. |
Transaction-related costs, net | Transaction-related costs, net. Transaction-related costs, net are classified separately in the Consolidated Condensed Statements of Comprehensive Income. 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. The Company records the gain or loss on foreign-currency transactions on certain intercompany loans and the gain or loss on intercompany loan hedges within interest expense related to corporate debt, net. During the three months ended March 31, 2021 and 2020, the Company recorded an immaterial amount and a loss of $5 million, respectively, related to such items. |
Investments | Investments.Earnings from the Company’s equity method investments are reported within operating expenses. |
Nonmarketable Equity Securities | Nonmarketable Equity Securities. As of March 31, 2021 and December 31, 2020, the Company had nonmarketable equity securities with a carrying value of $8 million, respectively, which are recorded within other non-current assets. No adjustments were made to the carrying amounts during the three months ended March 31, 2021 and 2020. |
Revenue | Revenues. Revenues are recognized under “Leases (Topic 842),” with the exception of royalty fee revenue derived from the Company’s licensees and revenue related to the Company’s customer loyalty program |
Adoption of New Accounting Pronouncements | Adoption of New Accounting Pronouncements Simplifying the Accounting for Income Taxes On January 1, 2021, as the result of a new accounting pronouncement, the Company adopted ASU 2019-12, “Simplifying the Accounting for Income Taxes,” which simplifies the accounting for income taxes by removing certain exceptions and improving the application of existing guidance. The adoption of this accounting pronouncement did not have a material impact on the Company's Consolidated Financial Statements. Compensation—Retirement Benefits—Defined Benefit Plans On January 1, 2021, as the result of a new accounting pronouncement, the Company adopted ASU 2018-14, “Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans,” which adds, removes, and clarifies disclosure requirements related to defined benefit pension and other postretirement plans. These changes are part of the FASB’s disclosure framework project, which the Board launched in 2014 to improve the effectiveness of disclosures in notes to financial statements. The adoption of this accounting pronouncement did not have a material impact on the Company's Consolidated Financial |
Lessee | Lessee The Company has operating and finance leases for rental locations, corporate offices, vehicle rental fleet and equipment. Many of the Company’s operating leases for rental locations contain concession agreements with various airport authorities that allow the Company to conduct its vehicle 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, some of which are subject to minimum annual guaranteed amounts. Concession fees other than minimum annual guaranteed amounts are not included in the measurement of operating lease Right of Use (“ROU”) assets and operating lease liabilities, and are recorded as variable lease expense as incurred. The Company’s operating leases for rental locations often also require the Company to pay or reimburse operating expenses. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Cash and Cash Equivalents | Cash and cash equivalents, Program cash and Restricted cash. The following table provides a detail of cash and cash equivalents, program and restricted cash reported within the Consolidated Condensed Balance Sheets to the amounts shown in the Consolidated Condensed Statements of Cash Flows. As of March 31, 2021 2020 Cash and cash equivalents $ 576 $ 679 Program cash 61 39 Restricted cash (a) 2 3 Total cash and cash equivalents, program and restricted cash $ 639 $ 721 ________ (a) Included within other current assets. |
Restrictions on Cash and Cash Equivalents | Cash and cash equivalents, Program cash and Restricted cash. The following table provides a detail of cash and cash equivalents, program and restricted cash reported within the Consolidated Condensed Balance Sheets to the amounts shown in the Consolidated Condensed Statements of Cash Flows. As of March 31, 2021 2020 Cash and cash equivalents $ 576 $ 679 Program cash 61 39 Restricted cash (a) 2 3 Total cash and cash equivalents, program and restricted cash $ 639 $ 721 ________ (a) Included within other current assets. |
Disaggregation of Revenue | The following table presents the Company’s revenues disaggregated by geography. Three Months Ended 2021 2020 Americas $ 1,080 $ 1,257 Europe, Middle East and Africa 203 357 Asia and Australasia 89 139 Total revenues $ 1,372 $ 1,753 The following table presents the Company’s revenues disaggregated by brand. Three Months Ended 2021 2020 Avis $ 717 $ 985 Budget 524 619 Other 131 149 Total revenues $ 1,372 $ 1,753 ________ Other includes Zipcar and other operating brands. |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Operating Lease, Lease Income | The following table presents the Company’s lease revenues disaggregated by geography. Three Months Ended 2021 2020 Americas $ 1,054 $ 1,244 Europe, Middle East and Africa 192 342 Asia and Australasia 86 135 Total lease revenues $ 1,332 $ 1,721 The following table presents the Company’s lease revenues disaggregated by brand. Three Months Ended 2021 2020 Avis $ 690 $ 968 Budget 516 608 Other 126 145 Total lease revenues $ 1,332 $ 1,721 _______ Other includes Zipcar and other operating brands. |
The Components of Lease Expense | The components of lease expense are as follows: Three Months Ended 2021 2020 Property leases (a) Operating lease expense $ 139 $ 185 Variable lease expense 54 36 Total property lease expense $ 193 $ 221 __________ (a) Primarily included in operating expense and includes $19 million of minimum annual guaranteed rent in excess of concession fees as defined in our rental concession agreement for the three months ended March 31, 2021. Supplemental cash flow information related to leases is as follows: Three Months Ended 2021 2020 Cash payments for lease liabilities within operating activities: Property operating leases $ 202 $ 170 Non-cash activities - increase (decrease) in ROU assets in exchange for lease liabilities: Property operating leases 169 296 |
Supplemental Balance Sheet Information related to Leases | Supplemental balance sheet information related to leases is as follows: As of As of Property leases Operating lease ROU assets $ 2,510 $ 2,560 Short-term operating lease liabilities (a) $ 519 $ 514 Long-term operating lease liabilities 2,025 2,078 Operating lease liabilities $ 2,544 $ 2,592 Weighted average remaining lease term 8.3 years 8.4 years Weighted average discount rate 3.85 % 3.86 % _________ (a) Included in Accounts payable and other current liabilities. |
Restructuring and Other Relat_2
Restructuring and Other Related Charges (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Summary Of Changes To Restructuring-Related Liabilities | The following tables summarize the changes to our restructuring-related liabilities and identifies the amounts recorded within the Company’s reporting segments for restructuring charges and corresponding payments and utilizations: Americas International Total Balance as of January 1, 2021 $ 3 $ 6 $ 9 Restructuring expense: T21 1 6 7 Restructuring payment/utilization: T21 (1) (4) (5) 2020 Optimization Plan (2) (2) (4) Balance as of March 31, 2021 $ 1 $ 6 $ 7 Personnel Facility Other (a) Total Balance as of January 1, 2021 $ 4 $ 2 $ 3 $ 9 Restructuring expense: T21 5 2 — 7 Restructuring payment/utilization: T21 (3) (2) — (5) 2020 Optimization Plan (3) — (1) (4) Balance as of March 31, 2021 $ 3 $ 2 $ 2 $ 7 __________ (a) Includes expenses primarily related to the disposition of vehicles. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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): Three Months Ended 2021 2020 Net loss for basic and diluted EPS $ (170) $ (158) Basic weighted average shares outstanding 69.9 72.9 Non-vested stock (a) — — Diluted weighted average shares outstanding 69.9 72.9 Loss per share: Basic $ (2.43) $ (2.16) Diluted $ (2.43) $ (2.16) __________ (a) As the Company incurred a net loss for the three months ended March 31, 2021 and 2020, 1.1 million and 1.3 million non-vested stock awards, respectively, have an anti-dilutive effect and therefore are excluded from the computation of diluted weighted average shares outstanding. |
Other Current Assets (Tables)
Other Current Assets (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Assets, Current [Abstract] | |
Schedule of Other Current Assets | Other current assets consisted of: As of As of December 31, 2020 Prepaid expenses $ 204 $ 161 Sales and use taxes 139 147 Other 163 148 Other current assets $ 506 $ 456 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule Of Intangible Assets | Intangible assets consisted of: As of March 31, 2021 As of December 31, 2020 Gross Accumulated Net Gross Accumulated Net Amortized Intangible Assets License agreements $ 275 $ 159 $ 116 $ 280 $ 151 $ 129 Customer relationships 261 198 63 268 196 72 Other 52 33 19 54 33 21 Total $ 588 $ 390 $ 198 $ 602 $ 380 $ 222 Unamortized Intangible Assets Goodwill $ 1,121 $ 1,137 Trademarks $ 552 $ 552 |
Vehicle Rental Activities (Tabl
Vehicle Rental Activities (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Vehicle Rental Activities The components of vehicles, net within assets under vehicle programs were as follows: As of As of March 31, December 31, 2021 2020 Rental vehicles $ 10,251 $ 9,210 Less: Accumulated depreciation (1,288) (1,337) 8,963 7,873 Vehicles held for sale 138 280 Vehicles, net $ 9,101 $ 8,153 The components of vehicle depreciation and lease charges, net are summarized below: Three Months Ended 2021 2020 Depreciation expense $ 259 $ 414 Lease charges 44 56 (Gain) loss on sale of vehicles, net (49) (11) Vehicle depreciation and lease charges, net $ 254 $ 459 |
Accounts Payable and Other Cu_2
Accounts Payable and Other Current Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Accounts Payable and Accrued Liabilities, Current [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | Accounts payable and other current liabilities consisted of: As of As of March 31, December 31, 2021 2020 Short-term operating lease liabilities $ 519 $ 514 Accounts payable 458 394 Accrued sales and use taxes 214 215 Public liability and property damage insurance liabilities – current 166 162 Deferred lease revenues – current 151 70 Accrued payroll and related 136 117 Accrued advertising and marketing 124 122 Other 403 440 Accounts payable and other current liabilities $ 2,171 $ 2,034 |
Long-term Corporate Debt and _2
Long-term Corporate Debt and Borrowing Arrangements (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule Of Long-Term Debt | Long-term corporate debt and borrowing arrangements consisted of: As of As of Maturity March 31, December 31, 2021 2020 6.375% Senior Notes April 2024 $ — $ 350 4.125% euro-denominated Senior Notes November 2024 351 366 5.250% Senior Notes March 2025 235 375 4.500% euro-denominated Senior Notes May 2025 293 305 10.500% Senior Secured Notes May 2025 — 487 4.750% euro-denominated Senior Notes January 2026 410 428 5.750% Senior Notes July 2027 725 724 4.750% Senior Notes April 2028 500 — 5.375% Senior Notes March 2029 600 — Floating Rate Term Loan (a) August 2027 1,196 1,199 Other (b) 22 24 Deferred financing fees (49) (48) Total 4,283 4,210 Less: Short-term debt and current portion of long-term debt 19 19 Long-term debt $ 4,264 $ 4,191 __________ (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. As of March 31, 2021, the floating rate term loan due 2027 bears interest at one-month LIBOR plus 225 basis points, for an aggregate rate of 2.36%. The Company has entered into a swap to hedge $700 million of its interest rate exposure related to the floating rate term loan at an aggregate rate of 4.58%. (b) Primarily includes finance leases which are secured by liens on the related assets. |
Schedule Of Committed Credit Facilities | At March 31, 2021, the committed corporate credit facilities available to the Company and/or its subsidiaries were as follows: Total Outstanding Letters of Credit Issued Available Senior revolving credit facility maturing 2023 (a) $ 1,800 $ — $ 1,230 $ 570 __________ (a) The senior revolving credit facility bears interest at one-month LIBOR plus 250 basis points and is part of the Company’s senior credit facilities, which include the floating rate term loan and the senior revolving credit facility, and which are secured by pledges of capital stock of certain subsidiaries of the Company, liens on substantially all of the Company’s intellectual property and certain other real and personal property. Committed Credit Facilities and Available Funding Arrangements As of March 31, 2021, available funding under the Company’s vehicle programs, including related party debt due to Avis Budget Rental Car Funding, consisted of: Total Capacity (a) Outstanding Borrowings (b) Available Americas - Debt due to Avis Budget Rental Car Funding $ 9,011 $ 6,181 $ 2,830 Americas - Debt borrowings 746 499 247 International - Debt borrowings 2,713 1,020 1,693 International - Finance leases 204 140 64 Total $ 12,674 $ 7,840 $ 4,834 __________ (a) Capacity is subject to maintaining sufficient assets to collateralize debt. |
Debt Under Vehicle Programs a_2
Debt Under Vehicle Programs and Borrowing Arrangements (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | 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 As of March 31, December 31, 2021 2020 Americas - Debt due to Avis Budget Rental Car Funding $ 6,181 $ 5,116 Americas - Debt borrowings 499 509 International - Debt borrowings 1,020 1,115 International - Finance leases 140 162 Deferred financing fees (a) (39) (45) Total $ 7,801 $ 6,857 __________ (a) Deferred financing fees related to Debt due to Avis Budget Rental Car Funding as of March 31, 2021 and December 31, 2020 were $32 million and $36 million, respectively. |
Schedule of Maturities of Long-term Debt | 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 March 31, 2021. Debt under Vehicle Programs (a) Within 1 year (b) $ 1,858 Between 1 and 2 years (c) 2,171 Between 2 and 3 years (d) 1,253 Between 3 and 4 years 1,598 Between 4 and 5 years 960 Thereafter — Total $ 7,840 __________ (a) Vehicle-backed debt primarily represents asset-backed securities. (b) Includes $0.4 billion of bank and bank-sponsored facilities. (c) Includes $0.9 billion of bank and bank-sponsored facilities. (d) Includes $0.1 billion of bank and bank-sponsored facilities. |
Schedule Of Committed Credit Facilities | At March 31, 2021, the committed corporate credit facilities available to the Company and/or its subsidiaries were as follows: Total Outstanding Letters of Credit Issued Available Senior revolving credit facility maturing 2023 (a) $ 1,800 $ — $ 1,230 $ 570 __________ (a) The senior revolving credit facility bears interest at one-month LIBOR plus 250 basis points and is part of the Company’s senior credit facilities, which include the floating rate term loan and the senior revolving credit facility, and which are secured by pledges of capital stock of certain subsidiaries of the Company, liens on substantially all of the Company’s intellectual property and certain other real and personal property. Committed Credit Facilities and Available Funding Arrangements As of March 31, 2021, available funding under the Company’s vehicle programs, including related party debt due to Avis Budget Rental Car Funding, consisted of: Total Capacity (a) Outstanding Borrowings (b) Available Americas - Debt due to Avis Budget Rental Car Funding $ 9,011 $ 6,181 $ 2,830 Americas - Debt borrowings 746 499 247 International - Debt borrowings 2,713 1,020 1,693 International - Finance leases 204 140 64 Total $ 12,674 $ 7,840 $ 4,834 __________ (a) Capacity is subject to maintaining sufficient assets to collateralize debt. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Components Of Other Comprehensive Income | The components of other comprehensive income (loss) were as follows: Three Months Ended 2021 2020 Net loss $ (170) $ (158) Other comprehensive income (loss): Currency translation adjustments (net of tax of $(12) and $(4), respectively) (14) (83) Net unrealized gain (loss) on cash flow hedges (net of tax of $3 and $6, respectively) 35 (18) Minimum pension liability adjustment (net of tax of $0 and $0, respectively) 3 2 24 (99) Comprehensive loss $ (146) $ (257) __________ Currency translation adjustments exclude income taxes related to indefinite investments in foreign subsidiaries. |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income (Loss) The components of accumulated other comprehensive income (loss) were as follows: Currency Net Unrealized Gains (Losses) on Cash Flow Hedges (a) Minimum Pension Liability Adjustment (b) Accumulated Balance, January 1, 2021 $ 40 $ (51) $ (176) $ (187) Other comprehensive income (loss) before reclassifications (14) 32 1 19 Amounts reclassified from accumulated other comprehensive income (loss) — 3 2 5 Net current-period other comprehensive income (loss) (14) 35 3 24 Balance, March 31, 2021 $ 26 $ (16) $ (173) $ (163) Balance, January 1, 2020 $ 9 $ (20) $ (146) $ (157) Other comprehensive income (loss) before reclassifications (83) (18) 1 (100) Amounts reclassified from accumulated other comprehensive income (loss) — — 1 1 Net current-period other comprehensive income (loss) (83) (18) 2 (99) Balance, March 31, 2020 $ (74) $ (38) $ (144) $ (256) __________ 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 and include a $47 million gain, net of tax, as of March 31, 2021 related to the Company’s hedge of its net investment in euro-denominated foreign operations (see Note 15–Financial Instruments). (a) For the three months ended March 31, 2021, the amount reclassified from accumulated other comprehensive income (loss) into corporate interest expense was $1 million ($0 million, net of tax). For the three months ended March 31, 2021, the amount reclassified from accumulated other comprehensive income (loss) into vehicle interest expense was $4 million ($3 million, net of tax). (b) For the three months ended March 31, 2021 and 2020, amounts reclassified from accumulated other comprehensive income (loss) into selling, general and administrative expenses were $3 million ($2 million, net of tax) and $2 million ($1 million, net of tax), respectively.. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Weighted Average Assumptions Used | The weighted average assumptions used in the model are as follows: Expected volatility of stock price 91% Risk-free interest rate 0.18% Valuation period 3 years Dividend yield —% |
Stock Based Compensation Activity | The activity related to RSUs consisted of (in thousands of shares): Number of Shares Weighted Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value Time-based RSUs Outstanding at January 1, 2021 1,070 $ 27.47 Granted (a) 240 63.12 Vested (b) (375) 30.05 Forfeited (7) 25.35 Outstanding and expected to vest at March 31, 2021 (c) 928 $ 35.66 1.3 $ 67 Performance-based and market-based RSUs Outstanding at January 1, 2021 988 $ 32.41 Granted (a) 236 62.27 Vested (b) — — Forfeited (272) 48.72 Outstanding at March 31, 2021 952 $ 35.14 2.0 $ 69 Outstanding and expected to vest at March 31, 2021 (c) 203 $ 54.59 2.8 $ 15 __________ (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. The weighted-average fair value of time-based RSUs and performance-based and market-based RSUs granted during the three months ended March 31, 2020 was $21.67 and $21.09, respectively. (b) The total fair value of RSUs vested during March 31, 2021 and 2020 was $11 million and $17 million, respectively. (c) Aggregate unrecognized compensation expense related to time-based RSUs and performance-based and market-based RSUs amounted to $39 million and will be recognized over a weighted average vesting period of 1.6 years. |
Financial Instruments (Tables)
Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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 March 31, 2021 Foreign exchange contracts $ 1,711 Interest rate caps (a) 8,686 Interest rate swaps 1,950 __________ (a) Represents $5.8 billion of interest rate caps sold, partially offset by approximately $2.8 billion of interest rate caps purchased. These amounts exclude $3.0 billion of interest rate caps purchased by the Company’s Avis Budget Rental Car Funding subsidiary as it is not consolidated by the Company. |
Fair Value Of Derivative Instruments | Estimated fair values (Level 2) of derivative instruments were as follows: As of March 31, 2021 As of December 31, 2020 Fair Value, Fair Value, Fair Value, Fair Value, Derivatives designated as hedging instruments Interest rate swaps (a) $ 6 $ 43 $ — $ 69 Derivatives not designated as hedging instruments Foreign exchange contracts (b) 16 11 3 11 Interest rate caps (c) 1 1 — — Total $ 23 $ 55 $ 3 $ 80 __________ 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 13–Stockholders’ Equity. (a) Included in other non-current assets or other non-current liabilities. (b) Included in other current assets or other current liabilities. (c) Included in assets under vehicle programs or liabilities under vehicle programs. The effects of derivatives recognized in the Company’s Consolidated Condensed Financial Statements were as follows: Three Months Ended 2021 2020 Derivatives designated as hedging instruments (a) Interest rate swaps (b) $ 35 $ (18) Euro-denominated notes (c) 33 11 Derivatives not designated as hedging instruments (d) Foreign exchange contracts (e) (8) 27 Interest rate swap (f) (1) — Commodity contracts (g) — (7) Total $ 59 $ 13 __________ (a) Recognized, net of tax, as a component of other comprehensive income (loss) within stockholders’ equity. (b) Classified as a net unrealized gain (loss) on cash flow hedges in accumulated other comprehensive income (loss). Refer to Note 13–Stockholders’ Equity for amounts reclassified from accumulated other comprehensive income into earnings. (c) Classified as a net investment hedge within currency translation adjustment in accumulated other comprehensive income (loss). (d) Gains (losses) related to derivative instruments are expected to be largely offset by (losses) gains on the underlying exposures being hedged. (e) For the three months ended March 31, 2021, included a $7 million loss in interest expense and a $1 million loss in operating expense. For the three months ended March 31, 2020, included $28 million gain in interest expense and a $1 million loss in operating expense. (f) Included primarily in vehicle interest, net. (g) Included in operating expense. |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments | The carrying amounts and estimated fair values (Level 2) of debt instruments were as follows: As of March 31, 2021 As of December 31, 2020 Carrying Estimated Carrying Estimated Corporate debt Short-term debt and current portion of long-term debt $ 19 $ 19 $ 19 $ 18 Long-term debt 4,264 4,408 4,191 4,337 Debt under vehicle programs Vehicle-backed debt due to Avis Budget Rental Car Funding $ 6,149 $ 6,429 $ 5,080 $ 5,317 Vehicle-backed debt 1,649 1,668 1,775 1,796 Interest rate swaps and interest rate caps (a) 3 3 2 2 __________ (a) Derivatives in a liability position. |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Summary Of Segments Information | The Company’s presentation of Adjusted EBITDA may not be comparable to similarly-titled measures used by other companies. Three Months Ended March 31, 2021 2020 Revenues Adjusted EBITDA Revenues Adjusted EBITDA Americas $ 1,080 $ 108 $ 1,257 $ (30) International 292 (50) 496 (40) Corporate and Other (a) — (11) — (17) Total Company $ 1,372 $ 47 $ 1,753 $ (87) Reconciliation of Adjusted EBITDA to income (loss) before income taxes 2021 2020 Adjusted EBITDA $ 47 $ (87) Less: Non-vehicle related depreciation and amortization 68 69 Interest expense related to corporate debt, net: Interest expense 61 48 Early extinguishment of debt 129 4 Restructuring and other related charges 20 44 COVID-19 charges (b) 18 7 Transaction-related costs, net 1 2 Non-operational charges related to shareholder activist activity (c) — 4 Loss before income taxes $ (250) $ (265) __________ (a) Includes unallocated corporate overhead which is not attributable to a particular segment. (b) For three months ended March 31, 2021 consists of $17 million within operating expenses and $1 million within selling, general and administrative expenses, primarily consisting of $19 million of minimum annual guaranteed rent in excess of concession fees, $5 million of other charges and $(6) million associated with vehicles damaged in overflow parking lots, net of insurance proceeds. For the three months ended March 31, 2020, consists of $7 million within operating expenses, primarily consisting of $5 million associated with vehicles damaged in overflow parking lots, net of insurance proceeds and $2 million of incremental cleaning supplies to sanitize vehicles and facilities, and over flow parking. (c) Reported within selling, general and administrative expenses. |
Basis of Presentation (Narrativ
Basis of Presentation (Narrative) (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Apr. 30, 2020 | |
Debt Instrument [Line Items] | |||||
Line of credit balance | $ 12,674 | $ 12,674 | |||
Net unrealized gain or loss of foreign currency transactions on intercompany loan hedges | 5 | $ 5 | |||
Investments | 64 | 64 | $ 63 | ||
Equity securities without readily determinable fair value, amount | 8 | 8 | $ 8 | ||
Royalty fee | |||||
Debt Instrument [Line Items] | |||||
Revenue | 40 | $ 32 | |||
Assets held for sale | Assets In Argentina | |||||
Debt Instrument [Line Items] | |||||
Consideration | $ 4 | 4 | |||
Consideration, rights to operate period | 2 years | ||||
Assets held for sale | $ 15 | 15 | |||
Liabilities held for sale | $ 6 | 6 | |||
Loss on assets held for sale | $ 13 | ||||
Medium-term Notes | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 1,200 | ||||
Line of Credit | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Line of credit balance | $ 1,800 |
Basis of Presentation (Schedule
Basis of Presentation (Schedule of Cash Activity) (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Cash and cash equivalents | $ 576 | $ 692 | $ 679 | |
Program cash | 61 | 72 | 39 | |
Restricted Cash | 2 | 3 | ||
Total cash and cash equivalents, program and restricted cash | $ 639 | $ 765 | $ 721 | $ 900 |
Basis of Presentation (Disaggre
Basis of Presentation (Disaggregated Revenue in Basis of Presentation) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 1,372 | $ 1,753 |
Avis | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 717 | 985 |
Budget | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 524 | 619 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 131 | 149 |
Americas | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1,080 | 1,257 |
Europe, Middle East and Africa | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 203 | 357 |
Asia and Australasia | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 89 | $ 139 |
Leases (Lessor) (Details)
Leases (Lessor) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Lessor, Lease, Description [Line Items] | ||
Total lease revenues | $ 1,332 | $ 1,721 |
Avis | ||
Lessor, Lease, Description [Line Items] | ||
Total lease revenues | 690 | 968 |
Budget | ||
Lessor, Lease, Description [Line Items] | ||
Total lease revenues | 516 | 608 |
Other | ||
Lessor, Lease, Description [Line Items] | ||
Total lease revenues | 126 | 145 |
Americas | ||
Lessor, Lease, Description [Line Items] | ||
Total lease revenues | 1,054 | 1,244 |
Europe, Middle East and Africa | ||
Lessor, Lease, Description [Line Items] | ||
Total lease revenues | 192 | 342 |
Asia and Australasia | ||
Lessor, Lease, Description [Line Items] | ||
Total lease revenues | $ 86 | $ 135 |
Leases (Lessee Components of Le
Leases (Lessee Components of Lease Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Property leases | ||
Operating lease expense | $ 139 | $ 185 |
Variable lease expense | 54 | 36 |
Total property lease expense | 193 | $ 221 |
Minimum annual guaranteed rent in excess of concession fees | $ 19 |
Leases (Supplemental Balance Sh
Leases (Supplemental Balance Sheet Information) (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Property leases | ||
Operating lease ROU assets | $ 2,510 | $ 2,560 |
Short-term operating lease liabilities | 519 | 514 |
Long-term operating lease liabilities | 2,025 | 2,078 |
Operating lease liabilities | $ 2,544 | $ 2,592 |
Weighted average remaining lease term | 8 years 3 months 18 days | 8 years 4 months 24 days |
Weighted average discount rate | 3.85% | 3.86% |
Leases (Supplemental Cash Flow
Leases (Supplemental Cash Flow Information) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash payments for lease liabilities within operating activities: | ||
Property operating leases | $ 202 | $ 170 |
Non-cash activities - increase (decrease) in ROU assets in exchange for lease liabilities: | ||
Property operating leases | $ 169 | $ 296 |
Restructuring and Other Relat_3
Restructuring and Other Related Charges (Narrative) (Detail) - T21 $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($)employee | |
Restructuring Cost and Reserve [Line Items] | |
Expected number of positions eliminated | 80 |
Number of positions eliminated | 60 |
Expected cost remaining | $ | $ 55 |
Restructuring and Other Relat_4
Restructuring and Other Related Charges (Summary Of Changes To Restructuring-Related Liabilities) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Restructuring Reserve [Roll Forward] | ||
Balance as of January 1, 2020 | $ 9 | |
Restructuring expenses | 20 | $ 44 |
Balance as of March 31, 2021 | 7 | |
Americas | ||
Restructuring Reserve [Roll Forward] | ||
Balance as of January 1, 2020 | 3 | |
Balance as of March 31, 2021 | 1 | |
International | ||
Restructuring Reserve [Roll Forward] | ||
Balance as of January 1, 2020 | 6 | |
Balance as of March 31, 2021 | 6 | |
T21 | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring expenses | 7 | |
Restructuring payment/utilization | (5) | |
T21 | Americas | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring expenses | 1 | |
Restructuring payment/utilization | (1) | |
T21 | International | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring expenses | 6 | |
Restructuring payment/utilization | (4) | |
2020 Optimization Plan | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring payment/utilization | (4) | |
2020 Optimization Plan | Americas | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring payment/utilization | (2) | |
2020 Optimization Plan | International | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring payment/utilization | (2) | |
Personnel | ||
Restructuring Reserve [Roll Forward] | ||
Balance as of January 1, 2020 | 4 | |
Balance as of March 31, 2021 | 3 | |
Personnel | T21 | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring expenses | 5 | |
Restructuring payment/utilization | (3) | |
Personnel | 2020 Optimization Plan | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring payment/utilization | (3) | |
Facility Related | ||
Restructuring Reserve [Roll Forward] | ||
Balance as of January 1, 2020 | 2 | |
Balance as of March 31, 2021 | 2 | |
Facility Related | T21 | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring expenses | 2 | |
Restructuring payment/utilization | (2) | |
Facility Related | 2020 Optimization Plan | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring payment/utilization | 0 | |
Other | ||
Restructuring Reserve [Roll Forward] | ||
Balance as of January 1, 2020 | 3 | |
Balance as of March 31, 2021 | 2 | |
Other | T21 | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring expenses | 0 | |
Restructuring payment/utilization | 0 | |
Other | 2020 Optimization Plan | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring payment/utilization | $ (1) |
Restructuring and Other Relat_5
Restructuring and Other Related Charges (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring expenses | $ 20 | $ 44 |
Voluntary termination | Limited Voluntary Opportunity Plan (“LVOP”) | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring expenses | 15 | |
Michael K. Tucker | ||
Restructuring Cost and Reserve [Line Items] | ||
Other nonrecurring expense | $ 2 |
Earnings Per Share (Computation
Earnings Per Share (Computation Of Basic And Diluted Earnings Per Share) (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Earnings Per Share [Abstract] | ||
Net loss for basic and diluted EPS | $ (170) | $ (158) |
Basic weighted average shares outstanding (in shares) | 69.9 | 72.9 |
Non-vested stock (in shares) | 0 | 0 |
Diluted weighted average shares outstanding (in shares) | 69.9 | 72.9 |
Loss per share: | ||
Basic (in dollars per share) | $ (2.43) | $ (2.16) |
Diluted (in dollars per share) | $ (2.43) | $ (2.16) |
Non-vested stock awards | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities (in shares) | 1.1 | 1.3 |
Other Current Assets (Details)
Other Current Assets (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Assets, Current [Abstract] | ||
Prepaid expenses | $ 204 | $ 161 |
Sales and use taxes | 139 | 147 |
Other | 163 | 148 |
Other current assets | $ 506 | $ 456 |
Intangible Assets (Schedule Of
Intangible Assets (Schedule Of Intangible Assets) (Detail) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 588 | $ 602 |
Accumulated Amortization | 390 | 380 |
Net Carrying Amount | 198 | 222 |
Indefinite-lived Intangible Assets [Line Items] | ||
Unamortized Intangible Assets, Goodwill, Gross Carrying Amount | 1,121 | 1,137 |
Trademarks | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Unamortized Intangible Assets, Trademarks, Gross Carrying Amount | 552 | 552 |
License agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 275 | 280 |
Accumulated Amortization | 159 | 151 |
Net Carrying Amount | 116 | 129 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 261 | 268 |
Accumulated Amortization | 198 | 196 |
Net Carrying Amount | 63 | 72 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 52 | 54 |
Accumulated Amortization | 33 | 33 |
Net Carrying Amount | $ 19 | $ 21 |
Intangible Assets (Narrative) (
Intangible Assets (Narrative) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense relating to all intangible assets | $ 18 | $ 13 |
Amortization expense for remainder of the year | 40 | |
Intangible assets amortization expense, year one | 34 | |
Intangible assets amortization expense, year two | 25 | |
Intangible assets amortization expense, year three | 22 | |
Intangible assets amortization expense, year four | 17 | |
Intangible assets amortization expense, year five | $ 15 |
Vehicle Rental Activities (Comp
Vehicle Rental Activities (Components Of The Company's Vehicles) (Detail) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 |
Property, Plant and Equipment [Abstract] | |||
Rental vehicles | $ 10,251 | $ 9,210 | |
Less: Accumulated depreciation | (1,288) | (1,337) | |
Rental Vehicles Net, Total | 8,963 | 7,873 | |
Vehicles held for sale | 138 | 280 | |
Vehicles, net | 9,101 | $ 8,153 | |
Liabilities under vehicle programs | 344 | $ 240 | |
Other receivables | $ 195 | $ 491 |
Vehicle Rental Activities (Co_2
Vehicle Rental Activities (Components Of Vehicle Depreciation And Lease Charges) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 259 | $ 414 |
Lease charges | 44 | 56 |
(Gain) loss on sale of vehicles, net | (49) | (11) |
Vehicle depreciation and lease charges, net | $ 254 | $ 459 |
Income Taxes Income Taxes (Narr
Income Taxes Income Taxes (Narrative) (Details) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Effective Income Tax Rate Reconciliation, Percent | 32.00% | 40.40% |
Accounts Payable and Other Cu_3
Accounts Payable and Other Current Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Accounts Payable and Accrued Liabilities, Current [Abstract] | ||
Short-term operating lease liabilities | $ 519 | $ 514 |
Accounts payable | 458 | 394 |
Accrued sales and use taxes | 214 | 215 |
Public liability and property damage insurance liabilities – current | 166 | 162 |
Deferred lease revenues – current | 151 | 70 |
Accrued payroll and related | 136 | 117 |
Accrued advertising and marketing | 124 | 122 |
Other | 403 | 440 |
Accounts payable and other current liabilities | $ 2,171 | $ 2,034 |
Long-term Corporate Debt and _3
Long-term Corporate Debt and Borrowing Arrangements (Schedule Of Long-Term Debt) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | ||
Other | $ 22 | $ 24 |
Deferred financing fees | (49) | (48) |
Total | 4,283 | 4,210 |
Less: Short-term debt and current portion of long-term debt | 19 | 19 |
Long-term debt | $ 4,264 | 4,191 |
6.375% Senior Notes | Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument stated interest percentage | 6.375% | |
Long-term debt | $ 0 | 350 |
4.125% euro-denominated Senior Notes | Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument stated interest percentage | 4.125% | |
Long-term debt | $ 351 | 366 |
5.250% Senior Notes | Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument stated interest percentage | 5.25% | |
Long-term debt | $ 235 | 375 |
4.500% euro-denominated Senior Notes | Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument stated interest percentage | 4.50% | |
Long-term debt | $ 293 | 305 |
10.500% Senior Secured Notes | Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument stated interest percentage | 10.50% | |
Long-term debt | $ 0 | 487 |
4.750% euro-denominated Senior Notes | Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument stated interest percentage | 4.75% | |
Long-term debt | $ 410 | 428 |
5.750% Senior Notes | Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument stated interest percentage | 5.75% | |
Long-term debt | $ 725 | 724 |
4.750% Senior Notes | Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument stated interest percentage | 4.75% | |
Long-term debt | $ 500 | 0 |
5.375% Senior Notes | Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument stated interest percentage | 5.375% | |
Long-term debt | $ 600 | 0 |
Floating Rate Term Loan | Loans Payable | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 1,196 | $ 1,199 |
Aggregate interest rate | 2.36% | |
Floating Rate Term Loan | Interest rate swaps | Loans Payable | ||
Debt Instrument [Line Items] | ||
Amount of hedged item | $ 700 | |
Aggregate rate | 4.58% | |
Floating Rate Term Loan | London Interbank Offered Rate (LIBOR) | Loans Payable | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.25% |
Long-term Corporate Debt and _4
Long-term Corporate Debt and Borrowing Arrangements (Narrative) (Detail) - Senior Notes | 1 Months Ended |
Mar. 31, 2021USD ($) | |
5.375% Senior Notes | |
Debt Instrument [Line Items] | |
Amount issued | $ 600,000,000 |
Debt instrument stated interest percentage | 5.375% |
10.500% Senior Secured Notes | |
Debt Instrument [Line Items] | |
Debt instrument stated interest percentage | 10.50% |
Repayments of debt | $ 599,000,000 |
4.750% Senior Notes | |
Debt Instrument [Line Items] | |
Amount issued | $ 500,000,000 |
Debt instrument stated interest percentage | 4.75% |
6.375 % Senior Notes | |
Debt Instrument [Line Items] | |
Debt instrument stated interest percentage | 6.375% |
Repayments of debt | $ 356,000,000 |
5.250% Senior Notes | |
Debt Instrument [Line Items] | |
Debt instrument stated interest percentage | 5.25% |
Repayments of debt | $ 142,000,000 |
Long-term Corporate Debt and _5
Long-term Corporate Debt and Borrowing Arrangements (Schedule Of Committed Credit Facilities) (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Line of Credit Facility [Line Items] | |
Outstanding Borrowings | $ 7,840 |
Available Capacity | $ 4,834 |
Revolving Credit Facility Maturing 2021 | London Interbank Offered Rate (LIBOR) | |
Line of Credit Facility [Line Items] | |
Basis points | 2.50% |
Revolving Credit Facility | Line of Credit | |
Line of Credit Facility [Line Items] | |
Total Capacity | $ 1,800 |
Outstanding Borrowings | 0 |
Letters of Credit Issued | 1,230 |
Available Capacity | $ 570 |
Debt Under Vehicle Programs A_3
Debt Under Vehicle Programs And Borrowing Arrangements (Schedule Of Debt Under Vehicle Programs) (Detail) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Debt under vehicle programs | $ 7,801 | $ 6,857 |
Debt Issuance Costs, Net | (49) | (48) |
Americas - Debt due to Avis Budget Rental Car Funding | ||
Debt Instrument [Line Items] | ||
Debt under vehicle programs | 6,181 | 5,116 |
Americas - Debt borrowings | ||
Debt Instrument [Line Items] | ||
Debt under vehicle programs | 499 | 509 |
International - Debt borrowings | ||
Debt Instrument [Line Items] | ||
Debt under vehicle programs | 1,020 | 1,115 |
International - Finance leases | ||
Debt Instrument [Line Items] | ||
Debt under vehicle programs | 140 | 162 |
Vehicle backed debt | ||
Debt Instrument [Line Items] | ||
Debt Issuance Costs, Net | (39) | (45) |
Avis Budget Rental Car Funding | Vehicle backed debt | ||
Debt Instrument [Line Items] | ||
Debt Issuance Costs, Net | $ (32) | $ (36) |
Debt Under Vehicle Programs A_4
Debt Under Vehicle Programs And Borrowing Arrangements (Schedule Of Contractual Maturities) (Detail) - Vehicle backed debt $ in Millions | Mar. 31, 2021USD ($) |
Debt Instrument [Line Items] | |
Within 1 year | $ 1,858 |
Between 1 and 2 years | 2,171 |
Between 2 and 3 years | 1,253 |
Between 3 and 4 years | 1,598 |
Between 4 and 5 years | 960 |
Thereafter | 0 |
Total | 7,840 |
Bank And Bank-Sponsored Facilities | |
Debt Instrument [Line Items] | |
Within 1 year | 400 |
Between 1 and 2 years | 900 |
Between 2 and 3 years | $ 100 |
Debt Under Vehicle Programs A_5
Debt Under Vehicle Programs And Borrowing Arrangements (Schedule Of Available Funding Under The Vehicle Programs) (Detail) $ in Millions | Mar. 31, 2021USD ($) |
Debt Instrument [Line Items] | |
Total Capacity | $ 12,674 |
Outstanding Borrowings | 7,840 |
Available Capacity | 4,834 |
Americas | |
Debt Instrument [Line Items] | |
Total Capacity | 746 |
Outstanding Borrowings | 499 |
Available Capacity | 247 |
Americas | Secured Debt | |
Debt Instrument [Line Items] | |
Outstanding Borrowings | 700 |
Americas | Affiliated Entity | Avis Budget Rental Car Funding | |
Debt Instrument [Line Items] | |
Total Capacity | 9,011 |
Outstanding Borrowings | 6,181 |
Available Capacity | 2,830 |
Americas | Affiliated Entity | Avis Budget Rental Car Funding | Secured Debt | |
Debt Instrument [Line Items] | |
Outstanding Borrowings | 7,400 |
International | |
Debt Instrument [Line Items] | |
Total Capacity | 2,713 |
Outstanding Borrowings | 1,020 |
Available Capacity | 1,693 |
International | Secured Debt | |
Debt Instrument [Line Items] | |
Outstanding Borrowings | 1,200 |
Finance Lease | International | |
Debt Instrument [Line Items] | |
Total Capacity | 204 |
Outstanding Borrowings | 140 |
Available Capacity | 64 |
Finance Lease | International | Secured Debt | |
Debt Instrument [Line Items] | |
Outstanding Borrowings | $ 200 |
Commitments And Contingencies (
Commitments And Contingencies (Narrative) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Schedule Of Commitments And Contingencies [Line Items] | ||
Liability net of recoverable insurance proceeds | $ 12 | |
Range of possible loss (up to) | 40 | |
Purchase obligation over the next twelve months | 6,400 | |
Purchase commitment period decrease | 2,300 | |
Other receivables | 195 | $ 491 |
Realogy [Member] | ||
Schedule Of Commitments And Contingencies [Line Items] | ||
Other receivables | 25 | |
Wyndham [Member] | ||
Schedule Of Commitments And Contingencies [Line Items] | ||
Other receivables | $ 15 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Detail) - USD ($) shares in Millions | Feb. 10, 2021 | Mar. 31, 2021 |
Equity [Abstract] | ||
Stock repurchase program, authorized amount | $ 1,800,000,000 | |
Net activity related to restricted stock units (in shares) | 0.1 | |
Share repurchased during period | $ 10,000,000 | |
Remaining authorized repurchase amount | $ 66,000,000 | |
Board of Directors Chairman | ||
Equity [Abstract] | ||
Shares issued (in shares) | 15 | |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||
Shares issued (in shares) | 15 |
Stockholders' Equity (Component
Stockholders' Equity (Components Of Other Comprehensive Income) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Equity [Abstract] | ||
Net loss | $ (170) | $ (158) |
Other comprehensive income (loss): | ||
Currency translation adjustments (net of tax of $(12) and $(4), respectively) | (14) | (83) |
Net unrealized gain (loss) on cash flow hedges (net of tax of $3 and $6, respectively) | 35 | (18) |
Minimum pension liability adjustment (net of tax of $0 and $0, respectively) | 3 | 2 |
Other comprehensive income (loss) | 24 | (99) |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | (146) | (257) |
Currency translation adjustments, tax | (12) | (4) |
Net unrealized gain (loss) on cash flow hedges, tax | 3 | 6 |
Minimum pension liability adjustment, tax | $ 0 | $ 0 |
Stockholders' Equity (Accumulat
Stockholders' Equity (Accumulated Other Comprehensive Income) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | $ (155) | $ 656 |
Other comprehensive income (loss) before reclassifications | 19 | (100) |
Amounts reclassified from accumulated other comprehensive income (loss) | 5 | 1 |
Net current-period other comprehensive income (loss) | 24 | (99) |
Ending Balance | (316) | 292 |
Currency Translation Adjustments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | 40 | 9 |
Other comprehensive income (loss) before reclassifications | (14) | (83) |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 |
Net current-period other comprehensive income (loss) | (14) | (83) |
Ending Balance | 26 | (74) |
Net Unrealized Gains (Losses) on Cash Flow Hedges | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | (51) | (20) |
Other comprehensive income (loss) before reclassifications | 32 | (18) |
Amounts reclassified from accumulated other comprehensive income (loss) | 3 | 0 |
Net current-period other comprehensive income (loss) | 35 | (18) |
Ending Balance | (16) | (38) |
Net Unrealized Gains (Losses) on Cash Flow Hedges | Corporate Interest Expense | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | |
Reclassification before tax | 1 | |
Net Unrealized Gains (Losses) on Cash Flow Hedges | Vehicle Interest Net | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Amounts reclassified from accumulated other comprehensive income (loss) | 3 | |
Reclassification before tax | 4 | |
Minimum Pension Liability Adjustment | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | (176) | (146) |
Other comprehensive income (loss) before reclassifications | 1 | 1 |
Amounts reclassified from accumulated other comprehensive income (loss) | 2 | 1 |
Net current-period other comprehensive income (loss) | 3 | 2 |
Ending Balance | (173) | (144) |
Minimum Pension Liability Adjustment | Selling, General and Administrative Expenses | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Amounts reclassified from accumulated other comprehensive income (loss) | 2 | 1 |
Reclassification before tax | 3 | 2 |
Accumulated Other Comprehensive Income (Loss) | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | (187) | (157) |
Net current-period other comprehensive income (loss) | 24 | (99) |
Ending Balance | (163) | $ (256) |
Accumulated Gain Loss, Net, Net Investment Hedge, Attributable To Parent | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Ending Balance | $ 47 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 4 | $ (2) |
Stock-based compensation expense (net of tax) | $ 3 | $ (1) |
Stock-Based Compensation (Assum
Stock-Based Compensation (Assumptions Used) (Details) - Performance-based and market-based RSUs | 3 Months Ended |
Mar. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected volatility of stock price | 91.00% |
Risk-free interest rate | 0.18% |
Valuation period | 3 years |
Dividend yield | 0.00% |
Stock-Based Compensation (Stock
Stock-Based Compensation (Stock Based Compensation Activity) (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Number of Shares | ||
Balance (in shares) | 928 | |
Weighted Average Grant Date Fair Value | ||
Cost not yet recognized | $ 39 | |
Period for recognition | 1 year 7 months 6 days | |
Fair value vested in period | $ 11 | $ 17 |
Time-based RSUs | ||
Number of Shares | ||
Balance (in shares) | 1,070 | |
Granted (in shares) | 240 | |
Vested (in shares) | (375) | |
Canceled (in shares) | (7) | |
Outstanding and expected to vest (in shares) | 928 | |
Weighted Average Grant Date Fair Value | ||
Balance (in dollars per share) | $ 27.47 | |
Granted (in dollars per share) | 63.12 | $ 21.67 |
Vested (in dollars per share) | 30.05 | |
Canceled (in dollars per share) | 25.35 | |
Balance (in dollars per share) | 35.66 | |
Outstanding and expected to vest (in dollars per share) | $ 35.66 | |
Weighted Average Remaining Contractual Term (years) | 1 year 3 months 18 days | |
Aggregate Intrinsic Value (in millions) | $ 67 | |
Performance-based and market-based RSUs | ||
Number of Shares | ||
Balance (in shares) | 988 | |
Granted (in shares) | 236 | |
Vested (in shares) | 0 | |
Canceled (in shares) | (272) | |
Balance (in shares) | 952 | |
Outstanding and expected to vest (in shares) | 203 | |
Weighted Average Grant Date Fair Value | ||
Balance (in dollars per share) | $ 32.41 | |
Granted (in dollars per share) | 62.27 | $ 21.09 |
Vested (in dollars per share) | 0 | |
Canceled (in dollars per share) | 48.72 | |
Balance (in dollars per share) | 35.14 | |
Outstanding and expected to vest (in dollars per share) | $ 54.59 | |
Weighted Average Remaining Contractual Term (years) | 2 years 9 months 18 days | |
Weighted Average Remaining Contractual Term (years) | 2 years | |
Aggregate Intrinsic Value (in millions) | $ 69 | |
Aggregate Intrinsic Value (in millions) | $ 15 |
Financial Instruments (Narrativ
Financial Instruments (Narrative) (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Cash flow hedge loss to be reclassified within twelve months | $ 20 |
Financial Instruments (Notation
Financial Instruments (Notational Amounts of Derivatives Held) (Details) $ in Millions | Mar. 31, 2021USD ($) |
Foreign exchange contracts | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Derivative, notional amount | $ 1,711 |
Interest rate caps | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Derivative, notional amount | 8,686 |
Interest rate caps | Subsidiaries | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Derivative, notional amount | 3,000 |
Interest rate swaps | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Derivative, notional amount | 1,950 |
Sold | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Derivative, notional amount | 5,800 |
Purchase | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Derivative, notional amount | $ 2,800 |
Financial Instruments (Fair Val
Financial Instruments (Fair Values Of Derivatives Instruments) (Detail) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Fair Value, Derivative Assets | $ 23 | $ 3 |
Fair Value, Derivative Liabilities | 55 | 80 |
Derivatives designated as hedging instruments | Interest rate swaps | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Fair Value, Derivative Assets | 6 | 0 |
Fair Value, Derivative Liabilities | 43 | 69 |
Derivatives not designated as hedging instruments | Foreign exchange contract | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Fair Value, Derivative Assets | 16 | 3 |
Fair Value, Derivative Liabilities | 11 | 11 |
Derivatives not designated as hedging instruments | Interest rate contracts | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Fair Value, Derivative Assets | 1 | 0 |
Fair Value, Derivative Liabilities | $ 1 | $ 0 |
Financial Instruments (Effects
Financial Instruments (Effects of Derivatives Recognized) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative gain (loss) recognized in OCI | $ 59 | $ 13 |
Interest rate swaps | Derivatives designated as hedging instruments | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative gain (loss) recognized in OCI | 35 | (18) |
Interest rate swaps | Derivatives not designated as hedging instruments | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative gain (loss) recognized in OCI | (1) | 0 |
Euro-Denominated Notes | Derivatives designated as hedging instruments | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative gain (loss) recognized in OCI | 33 | 11 |
Foreign exchange contracts | Derivatives not designated as hedging instruments | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative gain (loss) recognized in OCI | (8) | 27 |
Foreign exchange contracts | Derivatives not designated as hedging instruments | Interest Expense | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative gain (loss) recognized in OCI | (7) | 28 |
Foreign exchange contracts | Derivatives not designated as hedging instruments | Operating Expense | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative gain (loss) recognized in OCI | (1) | (1) |
Commodity Contracts | Derivatives not designated as hedging instruments | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative gain (loss) recognized in OCI | $ 0 | $ (7) |
Financial Instruments (Schedule
Financial Instruments (Schedule Of Carrying Amounts And Estimated Fair Values) (Detail) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term debt and current portion of long-term debt | $ 19 | $ 19 |
Long-term debt | 4,264 | 4,191 |
Carrying Amount | Fair Value, Inputs, Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term debt and current portion of long-term debt | 19 | 19 |
Long-term debt | 4,264 | 4,191 |
Carrying Amount | Interest rate contracts | Fair Value, Inputs, Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate swaps and interest rate caps | 3 | 2 |
Carrying Amount | Vehicle-Backed Debt Due To Avis Budget Rental Car Funding | Fair Value, Inputs, Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Vehicle-backed debt | 1,649 | 1,775 |
Carrying Amount | Avis Budget Rental Car Funding | Vehicle-Backed Debt Due To Avis Budget Rental Car Funding | Fair Value, Inputs, Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Vehicle-backed debt | 6,149 | 5,080 |
Estimated Fair Value | Fair Value, Inputs, Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term debt and current portion of long-term debt | 19 | 18 |
Long-term debt | 4,408 | 4,337 |
Estimated Fair Value | Interest rate contracts | Fair Value, Inputs, Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate swaps and interest rate caps | 3 | 2 |
Estimated Fair Value | Vehicle-Backed Debt Due To Avis Budget Rental Car Funding | Fair Value, Inputs, Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Vehicle-backed debt | 1,668 | 1,796 |
Estimated Fair Value | Avis Budget Rental Car Funding | Vehicle-Backed Debt Due To Avis Budget Rental Car Funding | Fair Value, Inputs, Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Vehicle-backed debt | $ 6,429 | $ 5,317 |
Segment Information (Summary Of
Segment Information (Summary Of Segments Information) (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 1,372 | $ 1,753 | |
Adjusted EBITDA | 47 | (87) | |
Less: | |||
Non-vehicle related depreciation and amortization | 68 | 69 | |
Interest expense | 61 | 48 | |
Early extinguishment of debt | 129 | 4 | |
Restructuring and other related charges | 20 | 44 | |
COVID-19 charges | 18 | 7 | |
Transaction-related costs, net | 1 | 2 | |
Non-operational charges related to shareholder activist activity | 0 | 4 | |
Loss before income taxes | (250) | (265) | |
Minimum annual guaranteed rent in excess of concession fees | 19 | ||
Other charges | 5 | ||
Vehicles damaged in overflow parking lots, net of insurance proceeds | (6) | ||
Assets under vehicle programs | 10,135 | $ 9,173 | |
Selling, General and Administrative Expenses | |||
Less: | |||
COVID-19 charges | 1 | ||
Operating Expense | |||
Less: | |||
COVID-19 charges | 17 | 7 | |
Vehicles damaged in overflow parking lots, net of insurance proceeds | 5 | ||
Incremental cleaning supplies | 2 | ||
Corporate and Other | |||
Segment Reporting Information [Line Items] | |||
Revenues | 0 | 0 | |
Adjusted EBITDA | (11) | (17) | |
Americas | |||
Less: | |||
Assets under vehicle programs | 8,200 | 7,200 | |
Americas | Geographical | |||
Segment Reporting Information [Line Items] | |||
Revenues | 1,080 | 1,257 | |
Adjusted EBITDA | 108 | (30) | |
International | |||
Less: | |||
Assets under vehicle programs | 1,900 | $ 2,000 | |
International | Geographical | |||
Segment Reporting Information [Line Items] | |||
Revenues | 292 | 496 | |
Adjusted EBITDA | $ (50) | $ (40) |
Segment Information (Narrative)
Segment Information (Narrative) (Detail) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Segment Reporting Information [Line Items] | ||
Assets under vehicle programs | $ 10,135 | $ 9,173 |
Americas | ||
Segment Reporting Information [Line Items] | ||
Assets under vehicle programs | 8,200 | 7,200 |
International | ||
Segment Reporting Information [Line Items] | ||
Assets under vehicle programs | $ 1,900 | $ 2,000 |