Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 10, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
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 $.01 | ||
Trading Symbol | CAR | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 4,269,199,382 | ||
Entity Common Stock, Shares Outstanding | 39,470,532 | ||
Documents Incorporated by Reference | Portions of the registrant’s definitive proxy statement to be mailed to stockholders in connection with the registrant’s 2023 annual meeting of stockholders (the “Annual Proxy Statement”) are incorporated by reference into Part III hereof. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0000723612 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Auditor Information [Abstract] | |
Auditor Name | DELOITTE & TOUCHE LLP |
Auditor Location | New York, New York |
Auditor Firm ID | 34 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues | |||
Revenues | $ 11,994 | $ 9,313 | $ 5,402 |
Expenses | |||
Operating | 5,285 | 4,255 | 3,322 |
Vehicle depreciation and lease charges, net | 828 | 1,197 | 1,368 |
Selling, general and administrative | 1,348 | 1,145 | 703 |
Vehicle interest, net | 402 | 313 | 318 |
Non-vehicle related depreciation and amortization | 225 | 272 | 286 |
Interest expense related to corporate debt, net: | |||
Interest expense | 250 | 218 | 231 |
Early extinguishment of debt | 0 | 136 | 9 |
Restructuring and other related charges | 19 | 64 | 118 |
Transaction-related costs, net | 8 | 5 | 3 |
Other (income) expense, net | (7) | 0 | 0 |
Total expenses | 8,358 | 7,605 | 6,358 |
Income (loss) before income taxes | 3,636 | 1,708 | (956) |
Provision for (benefit from) income taxes | 880 | 425 | (272) |
Net income (loss) | 2,756 | 1,283 | (684) |
Less: net loss attributable to non-controlling interests | (8) | (2) | 0 |
Net income (loss) attributable to Avis Budget Group, Inc. | $ 2,764 | $ 1,285 | $ (684) |
Earnings (loss) per share | |||
Basic (in USD per share) | $ 58.41 | $ 19.79 | $ (9.71) |
Diluted (in USD per share) | $ 57.16 | $ 19.44 | $ (9.71) |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 2,756 | $ 1,283 | $ (684) |
Less: net loss attributable to non-controlling interests | (8) | (2) | 0 |
Net income (loss) attributable to Avis Budget Group, Inc. | 2,764 | 1,285 | (684) |
Other comprehensive income (loss), net of tax | |||
Currency translation adjustments, net of tax of $(11), $(20) and $23, respectively | (46) | (35) | 33 |
Reclassification of currency translation adjustments to earnings | 0 | 11 | (2) |
Cash flow hedges: | |||
Net unrealized holding gains (losses), net of tax of $(20), $(6), and $14, respectively | 57 | 18 | (39) |
Reclassification of cash flow hedges to earnings, net of tax of $(2), $(5), and $(3), respectively | 7 | 14 | 8 |
Minimum pension liability adjustment: | |||
Pension and post-retirement benefits, net of tax of $(4), $(13), and $12, respectively | 11 | 39 | (36) |
Reclassification of pension and post-retirement benefits to earnings, net of tax of $(2), $(2), and $(3), respectively | 3 | 7 | 6 |
Other comprehensive income (loss) | 32 | 54 | (30) |
Total comprehensive income (loss) attributable to Avis Budget Group, Inc. | $ 2,796 | $ 1,339 | $ (714) |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Currency translation adjustments, tax | $ (11) | $ (20) | $ 23 |
Net unrealized holding gains (losses), tax | (20) | (6) | 14 |
Reclassification of cash flow hedges to earnings, tax | (2) | (5) | (3) |
Pension and post-retirement benefits, tax | (4) | (13) | 12 |
Reclassification of pension and post-retirement benefits to earnings, tax | $ (2) | $ (2) | $ (3) |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 570 | $ 534 |
Receivables (net of allowance for doubtful accounts of $86 and $84, respectively) | 810 | 775 |
Other current assets | 506 | 538 |
Total current assets | 1,886 | 1,847 |
Property and equipment, net | 594 | 537 |
Operating lease right-of-use assets | 2,405 | 2,368 |
Deferred income taxes | 1,379 | 1,615 |
Goodwill | 1,070 | 1,108 |
Other intangibles, net | 666 | 724 |
Other non-current assets | 499 | 382 |
Total assets exclusive of assets under vehicle programs | 8,499 | 8,581 |
Assets under vehicle programs: | ||
Program cash | 70 | 89 |
Vehicles, net | 15,961 | 12,866 |
Receivables from vehicle manufacturers and other | 421 | 222 |
Investment in Avis Budget Rental Car Funding (AESOP) LLC—related party | 976 | 842 |
Assets under vehicle programs | 17,428 | 14,019 |
Total assets | 25,927 | 22,600 |
Current liabilities: | ||
Accounts payable and other current liabilities | 2,547 | 2,389 |
Short-term debt and current portion of long-term debt | 27 | 19 |
Total current liabilities | 2,574 | 2,408 |
Long-term debt | 4,644 | 3,990 |
Long-term operating lease liabilities | 1,884 | 1,910 |
Other non-current liabilities | 554 | 625 |
Total liabilities exclusive of liabilities under vehicle programs | 9,656 | 8,933 |
Liabilities under vehicle programs: | ||
Debt | 2,534 | 2,542 |
Debt due to Avis Budget Rental Car Funding (AESOP) LLC—related party | 11,275 | 8,848 |
Deferred income taxes | 2,754 | 2,242 |
Other | 408 | 244 |
Total Liabilities under vehicle programs | 16,971 | 13,876 |
Commitments and contingencies (Note 15) | ||
Stockholders’ equity: | ||
Preferred stock, $.01 par value—authorized 10 shares; none issued and outstanding | 0 | 0 |
Common stock, $.01 par value—authorized 250 shares; issued 137 shares, respectively | 1 | 1 |
Additional paid-in capital | 6,666 | 6,676 |
Retained earnings (accumulated deficit) | 2,579 | (185) |
Accumulated other comprehensive loss | (101) | (133) |
Treasury stock, at cost 98 and 81 shares, respectively | (9,848) | (6,579) |
Stockholders’ equity attributable to Avis Budget Group, Inc. | (703) | (220) |
Non-controlling interests | 3 | 11 |
Total stockholders’ equity | (700) | (209) |
Total liabilities and stockholders’ equity | $ 25,927 | $ 22,600 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Receivable | $ 86 | $ 84 |
Preferred stock (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock issued (in shares) | 0 | 0 |
Preferred stock outstanding (in shares) | 0 | 0 |
Common stock (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock authorized (in shares) | 250,000,000 | 250,000,000 |
Common stock issued (in shares) | 137,000,000 | 137,000,000 |
Treasury stock (in shares) | 98,000,000 | 81,000,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating activities | |||
Net income (loss) | $ 2,756 | $ 1,283 | $ (684) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Vehicle depreciation | 1,709 | 1,402 | 1,330 |
Amortization of right-of-use assets | 877 | 806 | 945 |
(Gain) loss on sale of vehicles, net | (1,019) | (361) | (157) |
Non-vehicle related depreciation and amortization | 225 | 272 | 286 |
Deferred income taxes | 682 | 378 | (317) |
Stock-based compensation | 25 | 30 | 9 |
Amortization of debt financing fees | 34 | 33 | 33 |
Early extinguishment of debt | 0 | 136 | 9 |
Net change in assets and liabilities: | |||
Receivables | (97) | (143) | 115 |
Income taxes | 6 | (28) | 1 |
Accounts payable and other current liabilities | 217 | 414 | (181) |
Operating lease liabilities | (879) | (801) | (936) |
Other, net | 171 | 70 | 238 |
Net cash provided by operating activities | 4,707 | 3,491 | 691 |
Investing activities | |||
Property and equipment additions | (246) | (108) | (94) |
Proceeds received on asset sales | 2 | 3 | 6 |
Net assets acquired (net of cash acquired) | (3) | (46) | (69) |
Other, net | (33) | (3) | 0 |
Net cash used in investing activities exclusive of vehicle programs | (280) | (154) | (157) |
Vehicle programs: | |||
Investment in vehicles | (10,491) | (10,054) | (5,401) |
Proceeds received on disposition of vehicles | 6,606 | 4,077 | 8,753 |
Investment in debt securities of Avis Budget Rental Car Funding (AESOP)—related party | (439) | (367) | (286) |
Proceeds from debt securities of Avis Budget Rental Car Funding (AESOP)—related party | 305 | 192 | 268 |
Net Cash Used In Investing Activities Of Vehicle Programs | (4,019) | (6,152) | 3,334 |
Net cash provided by (used in) investing activities | (4,299) | (6,306) | 3,177 |
Financing activities | |||
Proceeds from long-term borrowings | 729 | 1,100 | 991 |
Payments on long-term borrowings | (24) | (1,354) | (308) |
Net change in short-term borrowings | (1) | 1 | 0 |
Debt financing fees | (7) | (24) | (26) |
Proceeds from issuance of common stock | 0 | 0 | 15 |
Repurchases of common stock | (3,329) | (1,460) | (119) |
Contributions from non-controlling interests | 40 | 38 | 0 |
Net cash provided by (used in) financing activities exclusive of vehicle programs | (2,592) | (1,699) | 553 |
Vehicle programs: | |||
Proceeds from borrowings | 17,419 | 14,467 | 13,558 |
Payments on borrowings | (15,160) | (10,056) | (18,138) |
Debt financing fees | (27) | (25) | (18) |
Net cash provided by financing activities of vehicle programs | 2,232 | 4,386 | (4,598) |
Net cash provided by (used in) financing activities | (360) | 2,687 | (4,045) |
Effect of changes in exchange rates on cash and cash equivalents, program and restricted cash | (32) | (11) | 42 |
Net increase (decrease) in cash and cash equivalents, program and restricted cash | 16 | (139) | (135) |
Cash and cash equivalents, program and restricted cash, beginning of period | 626 | 765 | 900 |
Cash and cash equivalents, program and restricted cash, end of period | 642 | 626 | 765 |
Supplemental disclosure | |||
Interest payments | 543 | 509 | 503 |
Income tax payments, net | $ 192 | $ 75 | $ 44 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) shares in Millions, $ in Millions | Total | Cumulative effect of accounting change | Stockholders’ Equity Attributable to Avis Budget Group, Inc. | Stockholders’ Equity Attributable to Avis Budget Group, Inc. Cumulative effect of accounting change | Common Stock | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) | Retained Earnings (Accumulated Deficit) Cumulative effect of accounting change | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Non-controlling Interests |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Beginning balance (in shares) | 137.1 | ||||||||||
Beginning balance at Dec. 31, 2019 | $ 656 | $ (1) | $ 656 | $ (1) | $ 1 | $ 6,741 | $ (785) | $ (1) | $ (157) | $ (5,144) | $ 0 |
Treasury stock, beginning balance (in shares) at Dec. 31, 2019 | (63.2) | ||||||||||
Comprehensive loss: | |||||||||||
Net income (loss) | (684) | (684) | |||||||||
Other comprehensive income (loss) | (30) | (30) | |||||||||
Total comprehensive income (loss) | (714) | (714) | (684) | (30) | |||||||
Non-controlling interests | (2) | (2) | (2) | ||||||||
Net activity related to restricted stock units (in shares) | 0.5 | ||||||||||
Net activity related to restricted stock units | 4 | 4 | (50) | $ 54 | |||||||
Activity related to employee stock purchase plan | 0 | (1) | $ 1 | ||||||||
Issuance of common stock (in shares) | 0.4 | ||||||||||
Issuance of common stock | $ 15 | 15 | (20) | $ 35 | |||||||
Repurchase of common stock (in shares) | (36) | (5) | |||||||||
Repurchases of common stock | $ (113) | (113) | $ (113) | ||||||||
Treasury stock, ending balance (in shares) at Dec. 31, 2020 | (67.3) | ||||||||||
Ending balance (in shares) at Dec. 31, 2020 | 137.1 | ||||||||||
Ending balance at Dec. 31, 2020 | (155) | (155) | $ 1 | 6,668 | (1,470) | (187) | $ (5,167) | 0 | |||
Beginning balance at Dec. 31, 2019 | 656 | $ (1) | 656 | $ (1) | $ 1 | 6,741 | (785) | $ (1) | (157) | $ (5,144) | 0 |
Treasury stock, beginning balance (in shares) at Dec. 31, 2019 | (63.2) | ||||||||||
Comprehensive loss: | |||||||||||
Repurchases of common stock | $ (4,800) | ||||||||||
Treasury stock, ending balance (in shares) at Dec. 31, 2022 | (98) | (97.6) | |||||||||
Ending balance (in shares) at Dec. 31, 2022 | 137.1 | ||||||||||
Ending balance at Dec. 31, 2022 | $ (700) | (703) | $ 1 | 6,666 | 2,579 | (101) | $ (9,848) | 3 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Beginning balance (in shares) | 137.1 | ||||||||||
Beginning balance at Dec. 31, 2020 | (155) | (155) | $ 1 | 6,668 | (1,470) | (187) | $ (5,167) | 0 | |||
Treasury stock, beginning balance (in shares) at Dec. 31, 2020 | (67.3) | ||||||||||
Comprehensive loss: | |||||||||||
Net income (loss) | 1,283 | 1,285 | (2) | ||||||||
Other comprehensive income (loss) | 54 | 54 | |||||||||
Total comprehensive income (loss) | 1,337 | 1,339 | 1,285 | 54 | (2) | ||||||
Contributions from non-controlling interests | 38 | 25 | 25 | 13 | |||||||
Net activity related to restricted stock units (in shares) | 0.4 | ||||||||||
Net activity related to restricted stock units | $ 14 | 14 | (17) | $ 31 | |||||||
Repurchase of common stock (in shares) | (36) | (14.3) | |||||||||
Repurchases of common stock | $ (1,443) | (1,443) | $ (1,443) | ||||||||
Treasury stock, ending balance (in shares) at Dec. 31, 2021 | (81) | (81.2) | |||||||||
Ending balance (in shares) at Dec. 31, 2021 | 137.1 | ||||||||||
Ending balance at Dec. 31, 2021 | $ (209) | (220) | $ 1 | 6,676 | (185) | (133) | $ (6,579) | 11 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Beginning balance (in shares) | 137.1 | ||||||||||
Comprehensive loss: | |||||||||||
Net income (loss) | 2,756 | 2,764 | 2,764 | (8) | |||||||
Other comprehensive income (loss) | 32 | 32 | 32 | ||||||||
Total comprehensive income (loss) | 2,788 | 2,796 | 2,764 | 32 | (8) | ||||||
Contributions from non-controlling interests | 24 | 24 | 24 | ||||||||
Net activity related to restricted stock units (in shares) | 0.3 | ||||||||||
Net activity related to restricted stock units | $ (36) | (36) | (34) | $ (2) | |||||||
Repurchase of common stock (in shares) | (36) | (16.7) | |||||||||
Repurchases of common stock | $ (3,267) | (3,267) | $ (3,267) | ||||||||
Treasury stock, ending balance (in shares) at Dec. 31, 2022 | (98) | (97.6) | |||||||||
Ending balance (in shares) at Dec. 31, 2022 | 137.1 | ||||||||||
Ending balance at Dec. 31, 2022 | $ (700) | $ (703) | $ 1 | $ 6,666 | $ 2,579 | $ (101) | $ (9,848) | $ 3 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Beginning balance (in shares) | 137.1 |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Avis Budget Group, Inc. provides mobility solutions to businesses and consumers worldwide. The accompanying Consolidated Financial Statements include the accounts and transactions of Avis Budget Group, Inc. and its subsidiaries, as well as entities in which Avis Budget Group, Inc. directly or indirectly has a controlling financial interest (collectively, “we”, “our”, “us”, or the “Company”). We operate 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 we do 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 we do not operate directly. We have completed the business acquisitions discussed in Note 6 – Acquisitions to these Consolidated Financial Statements. The operating results of the acquired businesses are included in the accompanying Consolidated Financial Statements from the dates of acquisition. We present separately the financial data of our vehicle programs. These programs are distinct from our 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 our vehicle programs. We believe it is appropriate to segregate the financial data of our vehicle programs because, ultimately, the source of repayment of such debt is the realization of such assets. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Principles of Consolidation The Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of our and all entities in which we have a direct or indirect controlling financial interest and variable interest entities for which we have determined we are the primary beneficiary. We consolidate joint venture activities when we have a controlling interest and record non-controlling interests within stockholders’ equity and the statement of comprehensive income equal to the percentage of ownership interest retained in such entities by the respective non-controlling party. Intercompany transactions have been eliminated in consolidation. Use of Estimates and Assumptions The use of estimates and assumptions as determined by management is required in the preparation of the Consolidated Financial Statements in conformity with GAAP. These estimates are based on management’s evaluation of historical trends and other information available when the Consolidated Financial Statements are prepared and may affect the amounts reported and related disclosures. Actual results could differ from those estimates. Revenue Recognition We derive revenues primarily by providing vehicle rentals and other related products and mobility services to commercial and leisure customers, as well as through licensing of our rental brands. Other related products and mobility services include sales of collision and loss damage waivers under which a customer is relieved from financial responsibility arising from vehicle damage incurred during the rental; products and services for driving convenience such as fuel service options, roadside safety net, electronic toll collection, tablet rentals, access to satellite radio, portable navigation units and child safety seat rentals; and rentals of other supplemental items including automobile towing equipment and other moving accessories and supplies. We also receive payment from customers for certain operating expenses that we incur, including airport concession fees that are paid by us in exchange for the right to operate at airports and other locations, as well as vehicle licensing fees. In addition, we collect membership fees in connection with our car sharing business. We combine all lease and non-lease components of our vehicle rental contracts for which the timing and pattern of transfer are the same and the lease component meets the classification of an operating lease. Vehicle rentals and other related products and mobility services are recognized evenly over the period of rental, which is on average approximately five days. (See Note 3 – Leases). Licensing revenues principally consist of royalties paid by our licensees and are recorded as the licensees’ revenues are earned (over the rental period). We renew license agreements in the normal course of business and occasionally terminate, purchase or sell license agreements. In connection with ongoing fees that we receive from our licensees pursuant to license agreements, we are required to provide certain services, such as training, marketing and the operation of reservation systems. We exclude from the measurement of our transaction price any tax assessed by a governmental authority that is both imposed on and concurrent with a specific revenue-producing transaction and collected from a customer. As a result, revenue is recorded net of such taxes collected. Revenues and expenses associated with gasoline, airport concessions and vehicle licensing are recorded on a gross basis within revenues and operating expenses. Membership fees related to our car sharing business are generally nonrefundable, are deferred and recognized ratably over the period of membership. Revenues are recognized under Leases (Topic 842) with the exception of royalty fee revenue derived from our licensees and revenue related to our customer loyalty program, which were approximately $165 million, $127 million and $159 million for the years ended December 31, 2022, 2021 and 2020, respectively. The following table presents our revenues disaggregated by geography: Year Ended December 31, 2022 2021 2020 Americas $ 9,474 $ 7,557 $ 3,965 Europe, Middle East and Africa 1,927 1,400 1,127 Asia and Australasia 593 356 310 Total revenues $ 11,994 $ 9,313 $ 5,402 The following table presents our revenues disaggregated by brand: Year Ended December 31, 2022 2021 2020 Avis $ 6,519 $ 4,894 $ 2,961 Budget 4,701 3,715 1,908 Other 774 704 533 Total revenues $ 11,994 $ 9,313 $ 5,402 ________ Other includes Zipcar and other operating brands. Deferred Revenue We record deferred revenues when cash payments are received in advance of satisfying our performance obligations, including amounts that are refundable. In addition, certain customers earn loyalty points on rentals, for which we defer a portion of our rental revenues generally equivalent to the estimated retail value of points expected to be redeemed. We estimate points that will never be redeemed based upon actual redemption and expiration patterns. Currently loyalty points expire after 12 months of member inactivity. Future changes to expiration assumptions or expiration policy, or to program rules, may result in changes to deferred revenue as well as recognized revenues from the program. The following table presents changes in deferred revenue associated with our customer loyalty program: Year Ended December 31, 2022 2021 Balance, January 1 $ 50 $ 34 Revenue deferred 52 49 Revenue recognized (41) (33) Balance, December 31 $ 61 $ 50 _______ At December 31, 2022 and 2021, $15 million and $33 million was included in accounts payable and other current liabilities, respectively, and $46 million and $17 million in other non-current liabilities, respectively. Non-current amounts are expected to be recognized as revenue within two Currency Translation Assets and liabilities of foreign operations are translated at the rate of exchange in effect on the balance sheet date; income and expenses are translated at the prevailing monthly average rate of exchange. The related translation adjustments are reflected in accumulated other comprehensive income (loss) in the stockholders’ equity section of the Consolidated Balance Sheets and in the Consolidated Statements of Comprehensive Income (See Note 16 – Stockholders' Equity). We have designated our euro-denominated Notes as a hedge of our investment in euro-denominated foreign operations and, accordingly, record the effective portion of gains or losses on this net investment hedge in accumulated other comprehensive income (loss) as part of currency translation adjustments. Cash and Cash Equivalents, Program Cash and Restricted Cash We consider highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Program cash primarily represents amounts specifically designated to purchase assets under vehicle programs and/or to repay the related debt, as such we consider it a restricted cash equivalent. The following table provides a detail of cash and cash equivalents, program and restricted cash reported within the Consolidated Balance Sheets to the amounts shown in the Consolidated Statements of Cash Flows: As of December 31, 2022 2021 Cash and cash equivalents $ 570 $ 534 Program cash 70 89 Restricted cash (a) 2 3 Total cash and cash equivalents, program and restricted cash $ 642 $ 626 _________ (a) Included within other current assets. Property and Equipment Property and equipment (including leasehold improvements) are stated at cost, net of accumulated depreciation and amortization. Depreciation (non-vehicle related) is computed utilizing the straight-line method over the estimated useful lives of the related assets. Leasehold improvements are amortized over the shorter of the term of the lease or the estimated useful lives of the improvements. Useful lives are as follows: Buildings 30 years Furniture, fixtures & equipment 3 to 10 years Capitalized software 3 to 7 years Buses and support vehicles 4 to 15 years We capitalize the costs of software developed for internal use when the preliminary project stage is completed and management (i) commits to funding the project and (ii) believes it is probable that the project will be completed and the software will be used to perform the function intended. The software developed or obtained for internal use is amortized on a straight-line basis commencing when such software is ready for its intended use. The net carrying value of software developed or obtained for internal use w as $174 million and $188 million as of December 31, 2022 and 2021, respectively. Goodwill and Other Intangible Assets Goodwill represents the excess, if any, of the fair value of the consideration transferred by the acquirer and the fair value of any non-controlling interest remaining in the acquiree, if any, over the fair values of the identifiable net assets acquired. We do not amortize goodwill, but assess it for impairment at least annually and whenever events or changes in circumstances indicate that the carrying amounts of their respective reporting units exceed their fair values. We perform our annual impairment assessment in the fourth quarter of each year at the reporting unit level. We assess goodwill for such impairment by comparing the carrying value of each reporting unit to its fair value using the present value of expected future cash flows. When appropriate, comparative market multiples and other factors are used to corroborate the discounted cash flow results. Other intangible assets, primarily trademarks, with indefinite lives are not amortized but are evaluated annually for impairment and whenever events or changes in circumstances indicate that the carrying amount of this asset may exceed its fair value. If the carrying value of an other intangible asset exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. Other intangible assets with finite lives are amortized over their estimated useful lives and are evaluated each reporting period to determine if circumstances warrant a revision to these lives. Impairment of Long-Lived Assets We are required to assess long-lived assets for impairment whenever circumstances indicate impairment may have occurred. This analysis is performed by comparing the respective carrying values of the assets to the undiscounted expected future cash flows to be generated from such assets. Property and equipment is evaluated separately at the lowest level of identifiable cash flows. If such analysis indicates that the carrying value of these assets is not recoverable, the carrying value of such assets is reduced to fair value. Vehicles Vehicles are stated at cost, net of accumulated depreciation. The initial cost of the vehicles is recorded net of incentives and allowances from manufacturers. We acquire a portion of our rental vehicles pursuant to repurchase and guaranteed depreciation programs established by automobile manufacturers. Under these programs, the manufacturers agree to repurchase vehicles at a specified price and date, or guarantee the depreciation rate for a specified period of time, subject to certain eligibility criteria (such as car condition and mileage requirements). We depreciate vehicles such that the net book value on the date of return to the manufacturers is intended to equal the contractual guaranteed residual values, thereby minimizing any gain or loss. Rental vehicles acquired outside of manufacturer repurchase and guaranteed depreciation programs are depreciated based upon their estimated residual values at their expected dates of disposition, after giving effect to anticipated conditions in the used car market. Any adjustments to depreciation are made prospectively. The estimation of residual values requires us to make assumptions regarding the age and mileage of the car at the time of disposal, as well as expected used vehicle auction market conditions. We regularly evaluate estimated residual values and adjust depreciation rates as appropriate. Differences between actual residual values and those estimated result in a gain or loss on disposal and are recorded as part of vehicle depreciation at the time of sale. Vehicle-related interest expense amounts are net of vehicle-related interest income of $1 million, $1 million and $12 million for 2022, 2021 and 2020, respectively. Advertising Expenses Advertising and digital marketing costs are generally expensed in the period incurred and are recorded within selling, general and administrative expenses in our Consolidated Statements of Operations. During 2022, 2021 and 2020, advertising costs were approximately $64 million, $81 million and $54 million, respectively. In addition, during 2022, 2021 and 2020, digital marketing costs were approximately $71 million, $44 million and $37 million, respectively. Taxes We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. As a result of the provisions of the Tax Cuts and Jobs Act, we account for Global Intangible Low-Taxed Income (“GILTI”) as a component of current period income tax expense in the year incurred. We record net deferred tax assets to the extent we believe that it is more likely than not that these assets will be realized. In making such determination, we consider all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies and recent results of operations. In the event we were to determine that we would be able to realize the deferred income tax assets in the future in excess of their net recorded amount, we would adjust the valuation allowance, which would reduce the provision for income taxes. Fair Value Measurements We measure the fair value of assets and liabilities and discloses the source for such fair value measurements. Financial assets and liabilities are classified as follows: Level 1, which refers to assets and liabilities valued using quoted prices from active markets for identical assets or liabilities; Level 2, which refers to assets and liabilities for which significant other observable market inputs are readily available; and Level 3, which are valued based on significant unobservable inputs. The fair value of our financial instruments is generally determined by reference to market values resulting from trading on a national securities exchange or in an over-the-counter market (Level 1 inputs). In some cases where quoted market prices are not available, prices are derived by considering the yield of the benchmark security that was issued to initially price the instruments and adjusting this rate by the credit spread that market participants would demand for the instruments as of the measurement date (Level 2 inputs). In situations where long-term borrowings are part of a conduit facility backed by short-term floating rate debt, we have determined that its carrying value approximates the fair value of this debt (Level 2 inputs). The carrying amounts of cash and cash equivalents, available-for-sale securities, accounts receivable, program cash and accounts payable and accrued liabilities approximate fair value due to the short-term maturities of these assets and liabilities. Our derivative assets and liabilities consist principally of currency exchange contracts, interest rate swaps, interest rate caps and commodity contracts, and are carried at fair value based on significant observable inputs (Level 2 inputs). Derivatives entered into by us are typically executed over-the-counter and are valued using internal valuation techniques, as no quoted market prices exist for such instruments. The valuation technique and inputs depend on the type of derivative and the nature of the underlying exposure. We principally use discounted cash flows to value these instruments. These models take into account a variety of factors including, where applicable, maturity, currency exchange rates, our interest rate yield curves and counterparties, credit curves, counterparty creditworthiness and commodity prices. These factors are applied on a consistent basis and are based upon observable inputs where available. Derivative Instruments Derivative instruments are used as part of our overall strategy to manage exposure to market risks associated with fluctuations in currency exchange rates, interest rates and gasoline costs. As a matter of policy, derivatives are not used for trading or speculative purposes. All derivatives are recorded at fair value either as assets or liabilities. Changes in fair value of derivatives not designated as hedging instruments are recognized currently in earnings within the same line item as the hedged item. The changes in fair value of a derivative that is designated as either a cash flow or net investment hedge is recorded as a component of accumulated other comprehensive income (loss) and reclassified into earnings in the same period or periods 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. Amounts related to our derivative instruments are recognized in the Consolidated Statements of Cash Flows consistent with the nature of the hedged item (principally operating activities). Currency Transactions Currency gains and losses resulting from foreign currency transactions are generally included in operating expenses within the Consolidated Statements of Operations; however, the net gain or loss of currency transactions on intercompany loans and the unrealized gain or loss on intercompany loan hedges are included within interest expense related to corporate debt, net. Self-Insurance Reserves The Consolidated Balance Sheets include $391 million and $383 million of liabilities associated with retained risks of liability to third parties as of December 31, 2022 and 2021, respectively. Such liabilities relate primarily to public liability and third-party property damage claims, as well as claims arising from the sale of ancillary insurance products including, but not limited to, supplemental liability, personal effects protection and personal accident insurance. These obligations represent an estimate for both reported claims not yet paid and claims incurred but not yet reported. The estimated reserve requirements for such claims are recorded on an undiscounted basis utilizing actuarial methodologies and various assumptions which include, but are not limited to, our historical loss experience and projected loss development factors. The required liability is also subject to adjustment in the future based upon changes in claims experience, including changes in the number of incidents for which we are ultimately liable and changes in the cost per incident. These amounts are included within accounts payable and other current liabilities and other non-current liabilities. The Consolidated Balance Sheets also include liabilities of approximately $53 million and $48 million as of December 31, 2022 and 2021, respectively, related to workers’ compensation, health and welfare and other employee benefit programs. The liabilities represent an estimate for both reported claims not yet paid and claims incurred but not yet reported, utilizing actuarial methodologies similar to those described above. These amounts are included within accounts payable and other current liabilities and other non-current liabilities. Stock-Based Compensation Stock-based compensation cost is measured at the grant date, based on the fair value of the award, and is recognized as expense on a straight-line basis over the vesting period. Our policy is to record compensation expense for stock options, and restricted stock units that are time- and performance-based, for the portion of the award that vests. Compensation expense related to market-based restricted stock units is recognized provided that the requisite service is rendered, regardless of when, if ever, the market condition is satisfied. We estimate the fair value of restricted stock units using the market price of our common stock on the date of grant. We estimate the fair value of stock-based and cash unit awards containing a market condition using a Monte Carlo simulation model. Key inputs and assumptions used in the Monte Carlo simulation model include the stock price of the award on the grant date, the expected term, the risk-free interest rate over the expected term, the expected annual dividend yield and the expected stock price volatility. The expected volatility is based on a combination of the historical and implied volatility of our publicly traded, near-the-money stock options, and the valuation period is based on the vesting period of the awards. The risk-free interest rate is derived from the U.S. Treasury yield curve in effect at the time of grant and, since we do not currently pay or plan to pay a dividend on our common stock, the expected dividend yield was zero. Business Combinations We use the acquisition method of accounting for business combinations, which requires that the assets acquired and liabilities assumed be recorded at their respective fair values at the date of acquisition. Assets acquired and liabilities assumed in a business combination that arise from contingencies are recognized if fair value can be reasonably estimated at the acquisition date. The excess, if any, of (i) the fair value of the consideration transferred by the acquirer and the fair value of any non-controlling interest remaining in the acquiree, over (ii) the fair values of the identifiable net assets acquired is recorded as goodwill. Gains and losses on the re-acquisition of license agreements are recorded in the Consolidated Statements of Operations within transaction-related costs, net, upon completion of the respective acquisition. Costs incurred to effect a business combination are expensed as incurred, except for the cost to issue debt related to the acquisition. We record contingent consideration resulting from a business combination at its fair value on the acquisition date. The fair value of the contingent consideration is generally estimated by utilizing a Monte Carlo simulation technique, based on a range of possible future results (Level 3). Any changes in contingent consideration are recorded in transaction-related costs, net. Transaction-related Costs, net Transaction-related costs, net are classified separately in the Consolidated Statements of Operations. These costs are comprised of expenses primarily related to acquisition-related activities such as due-diligence and other advisory costs, expenses related to the integration of the acquiree’s operations with our comparable expenses, including the implementation of best practices and process improvements, non-cash gains and losses related to re-acquired rights, expenses related to pre-acquisition contingencies and contingent consideration related to acquisitions. Investments We account for investments for which we have the ability to exercise significant influence, but do not have a controlling interest, using the equity method of accounting and record our proportional share of net income or loss within operating expenses in the Consolidated Statements of Operations. We assess equity method investments for impairment whenever events or changes in circumstances indicate that the carrying amounts of such investments may not be recoverable. Any difference between the carrying value of the equity method investment and its estimated fair value is recognized as an impairment charge if the loss in value is deemed other than temporary. As of December 31, 2022 and 2021, we had investments with a carrying value of $77 million and $72 million, respectively, recorded within other non-current assets on the Consolidated Balance Sheets. Aggregate realized gains and losses on equity investments and dividend income are recorded within operating expenses on the Consolidated Statements of Operations. During 2022, 2021 and 2020, the amounts realized from the sale of equity investments and dividend income was $12 million, $10 million and $5 million, respectively. See Note 17 – Related Party Transactions for our equity method investment in our former subsidiary. Divestitures We classify long-lived assets and liabilities to be disposed of as held for sale in the period in which they are available for immediate sale in their present condition and the sale is probable and expected to be completed within one year. We initially measure assets and liabilities held for sale at the lower of their carrying value or fair value less costs to sell and assesses their fair value each reporting period until disposed. When the divestiture represents a strategic shift that has, or will have, a major effect on our operations and financial results, the disposal is presented as a discontinued operation. In February 2022, we completed the sale of our operations in the United States Virgin Islands for $13 million, for the right to operate the Avis brand. During the year ended December 31, 2022, we recorded a gain of $2 million within restructuring and other related charges. In December 2021, we entered into a stock purchase agreement with Spuigroep B.V. to sell our operations in the Netherlands. In March 2022, we completed the sale of our operations in the Netherlands for $15 million, subject to working capital adjustments, for the right to operate the Avis and Budget brands. During the year ended December 31, 2022, we recorded a loss of $7 million, net of impact of foreign currency adjustments, within restructuring and other related charges. The Netherlands operations are reported within our International reporting segment. In May 2021, we completed the sale of our operation in Argentina to Urbiz S.A. for $4 million. As part of the sale, Urbiz S.A. agreed to pay the purchase price, plus interest, over two years for the right to operate the Avis and Budget brands. During the year ended December 31, 2021, we recorded a loss of $14 million , net of the impact of foreign currency adjustments, within restructuring and other related charges. In addition, we paid severance to terminated employees of $2 million . Variable Interest Entity (“VIE”) We review our investments to determine if they are VIEs. A VIE is an entity in which either (i) the equity investors as a group lack the power through voting or similar rights to direct the activities of such entity that most significantly impact such entity’s economic performance or (ii) the equity investment at risk is insufficient to finance that entity’s activities without additional subordinated financial support. Entities that are determined to be VIEs are consolidated if we are the primary beneficiary of the entity. The primary beneficiary possesses the power to direct the activities of the VIE that most significantly impact its economic performance and has the obligation to absorb losses or the right to receive benefits from the VIE that are significant to it. We will reconsider our original assessment of a VIE upon the occurrence of certain events such as contributions and redemptions, either by us, or third parties, or amendments to an entity’s governing documents. On an ongoing basis, we reconsider whether we are deemed to be a VIE’s primary beneficiary. See Note 17 – Related Party Transactions for our VIE investment in our former subsidiary. Nonmarketable Equity Securities We classify investments without readily determinable fair values that are not accounted for under the equity method as nonmarketable equity securities. The accounting guidance requires nonmarketable equity securities to be recorded at cost and adjusted to fair value at each reporting period. We apply the measurement alternative, which allows these investments to be recorded at cost, less impairment, if any, and subsequently adjust for observable price changes of identical or similar investments of the same issuer. Any changes in value are recorded within operating expenses. As of December 31, 2022 and 2021, our nonmarketable equity securities within non-current assets on our Consolidated Balance sheets were not material and no material adjustments were made to the carrying values of these securities during the years ended December 31, 2022, 2021 or 2020. Recently Issued Accounting Pronouncements Accounting for Contract Assets and Contract Liabilities from Contracts with Customers In October 2021, the FASB issued ASU 2021-08, “Accounting for Contract Assets and Contract Liabilities from Contracts with Customers,” which amends Topic 805 to add contract assets and contract liabilities to the list of exceptions to the recognition and measurement principles that apply to business combinations and to require an acquirer to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606. ASU 2021-08 becomes effective for us on January 1, 2023. Early adoption is permitted on a retrospective or prospective basis. The adoption of this accounting pronouncement is not expected to have a material impact on our Consolidated Financial Statements. Reference Rate Reform In January 2021, the FASB issued ASU 2021-01, “Reference Rate Reform (Topic 848),” which amends ASU 2020-04 and clarifies the scope and guidance of Topic 848 to allow derivatives impacted by the reference rate reform to qualify for certain optional expedients and exceptions for contract modifications and hedge accounting. The guidance is optional and is effective for a limited period of time through December 31, 2022. As of December 31, 2022, this guidance had no impact on our Consolidated Financial Statements and we will continue to evaluate this guidance. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | Lessor The following table presents our lease revenues disaggregated by geography: Year Ended December 31, 2022 2021 2020 Americas $ 9,401 $ 7,501 $ 3,864 Europe, Middle East and Africa 1,852 1,343 1,080 Asia and Australasia 576 342 299 Total lease revenues $ 11,829 $ 9,186 $ 5,243 The following table presents our lease revenues disaggregated by brand: Year Ended December 31, 2022 2021 2020 Avis $ 6,420 $ 4,828 $ 2,851 Budget 4,650 3,674 1,878 Other 759 684 514 Total lease revenues $ 11,829 $ 9,186 $ 5,243 ________ Other includes Zipcar and other operating brands. Lessee We have operating and finance leases for rental locations, corporate offices, vehicle rental fleet and equipment. Many of our operating leases for rental locations contain concession agreements with various airport authorities that allow us to conduct our 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 ROU assets and operating lease liabilities, and are recorded as variable lease expense as incurred. Our operating leases for rental locations often also require us to pay or reimburse operating expenses. We lease a portion of our vehicles under operating leases. As of December 31, 2022 and 2021, we have guaranteed up to $65 million and $102 million, respectively, of residual values for these vehicles at the end of their respective lease terms. We believe that, based on current market conditions, the net proceeds from the sale of these vehicles at the end of their lease terms will equal or exceed their net book values and therefore have not recorded a liability related to guaranteed residual values. The components of lease expense are as follows: Year Ended December 31, 2022 2021 2020 Property leases (a) Operating lease expense $ 703 $ 561 $ 575 Variable lease expense 520 433 152 Sublease income (5) (6) (6) Total property lease expense $ 1,218 $ 988 $ 721 Vehicle leases Finance lease expense: Amortization of ROU assets (b) $ 29 $ 37 $ 33 Interest on lease liabilities (c) 3 4 3 Operating lease expense (b) 138 156 195 Total vehicle lease expense $ 170 $ 197 $ 231 __________ (a) Primarily included in operating expenses and includes $(9) million, $(2) million and $60 million of minimum annual guaranteed rent in excess of concession fees as defined in our rental concession agreement for the years ended December 31, 2022, 2021 and 2020, respectively. (b) Included in vehicle depreciation and lease charges, net. (c) Included in vehicle interest, net. Supplemental balance sheet information related to leases is as follows: As of December 31, 2022 2021 Property leases Operating lease ROU assets $ 2,405 $ 2,368 Short-term operating lease liabilities (a) $ 555 $ 496 Long-term operating lease liabilities 1,884 1,910 Operating lease liabilities $ 2,439 $ 2,406 Weighted average remaining lease term 8.2 years 8.8 years Weighted average discount rate 4.30 % 3.84 % Vehicle leases Finance Finance lease ROU assets, gross $ 267 $ 353 Accumulated amortization (45) (72) Finance lease ROU assets, net (b) $ 222 $ 281 Short-term vehicle finance lease liabilities $ 44 $ 126 Long-term vehicle finance lease liabilities 132 116 Vehicle finance lease liabilities (c) $ 176 $ 242 Weighted average remaining lease term 2.0 years 2.2 years Weighted average discount rate 1.82 % 1.97 % Operating Vehicle operating lease ROU assets (d) $ 86 $ 63 Short-term vehicle operating lease liabilities $ 64 $ 50 Long-term vehicle operating lease liabilities 22 14 Vehicle operating lease liabilities (e) $ 86 $ 64 Weighted average remaining lease term 1.4 years 1.3 years Weighted average discount rate 4.86 % 2.66 % _________ (a) Included in accounts payable and other current liabilities (b) Included in vehicles, net within Assets under vehicle programs (c) Included in debt within liabilities under vehicle programs (d) Included in receivables from vehicle manufacturers and other within assets under vehicle programs (e) Included in other within liabilities under vehicle programs Supplemental cash flow information related to leases is as follows: Year Ended December 31, 2022 2021 2020 Cash payments for lease liabilities within operating activities: Property operating leases $ 743 $ 639 $ 740 Vehicle finance leases 3 4 3 Vehicle operating leases 137 162 196 Cash payments for lease liabilities within financing activities: Vehicle finance leases 181 193 294 Non-cash activities - increase in ROU assets in exchange for lease liabilities: Property operating leases 812 484 666 Vehicle finance leases 153 223 257 Vehicle operating leases 161 115 111 Maturities of lease liabilities as of December 31, 2022 are as follows: Property Operating Leases Vehicle Vehicle Operating Leases Within 1 year $ 646 $ 44 $ 64 Between 1 and 2 years 441 4 18 Between 2 and 3 years 345 128 6 Between 3 and 4 years 286 — 1 Between 4 and 5 years 234 — — Thereafter 967 — — Total lease payments 2,919 176 89 Less: Imputed interest (480) — (3) Total $ 2,439 $ 176 $ 86 |
Leases | Lessor The following table presents our lease revenues disaggregated by geography: Year Ended December 31, 2022 2021 2020 Americas $ 9,401 $ 7,501 $ 3,864 Europe, Middle East and Africa 1,852 1,343 1,080 Asia and Australasia 576 342 299 Total lease revenues $ 11,829 $ 9,186 $ 5,243 The following table presents our lease revenues disaggregated by brand: Year Ended December 31, 2022 2021 2020 Avis $ 6,420 $ 4,828 $ 2,851 Budget 4,650 3,674 1,878 Other 759 684 514 Total lease revenues $ 11,829 $ 9,186 $ 5,243 ________ Other includes Zipcar and other operating brands. Lessee We have operating and finance leases for rental locations, corporate offices, vehicle rental fleet and equipment. Many of our operating leases for rental locations contain concession agreements with various airport authorities that allow us to conduct our 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 ROU assets and operating lease liabilities, and are recorded as variable lease expense as incurred. Our operating leases for rental locations often also require us to pay or reimburse operating expenses. We lease a portion of our vehicles under operating leases. As of December 31, 2022 and 2021, we have guaranteed up to $65 million and $102 million, respectively, of residual values for these vehicles at the end of their respective lease terms. We believe that, based on current market conditions, the net proceeds from the sale of these vehicles at the end of their lease terms will equal or exceed their net book values and therefore have not recorded a liability related to guaranteed residual values. The components of lease expense are as follows: Year Ended December 31, 2022 2021 2020 Property leases (a) Operating lease expense $ 703 $ 561 $ 575 Variable lease expense 520 433 152 Sublease income (5) (6) (6) Total property lease expense $ 1,218 $ 988 $ 721 Vehicle leases Finance lease expense: Amortization of ROU assets (b) $ 29 $ 37 $ 33 Interest on lease liabilities (c) 3 4 3 Operating lease expense (b) 138 156 195 Total vehicle lease expense $ 170 $ 197 $ 231 __________ (a) Primarily included in operating expenses and includes $(9) million, $(2) million and $60 million of minimum annual guaranteed rent in excess of concession fees as defined in our rental concession agreement for the years ended December 31, 2022, 2021 and 2020, respectively. (b) Included in vehicle depreciation and lease charges, net. (c) Included in vehicle interest, net. Supplemental balance sheet information related to leases is as follows: As of December 31, 2022 2021 Property leases Operating lease ROU assets $ 2,405 $ 2,368 Short-term operating lease liabilities (a) $ 555 $ 496 Long-term operating lease liabilities 1,884 1,910 Operating lease liabilities $ 2,439 $ 2,406 Weighted average remaining lease term 8.2 years 8.8 years Weighted average discount rate 4.30 % 3.84 % Vehicle leases Finance Finance lease ROU assets, gross $ 267 $ 353 Accumulated amortization (45) (72) Finance lease ROU assets, net (b) $ 222 $ 281 Short-term vehicle finance lease liabilities $ 44 $ 126 Long-term vehicle finance lease liabilities 132 116 Vehicle finance lease liabilities (c) $ 176 $ 242 Weighted average remaining lease term 2.0 years 2.2 years Weighted average discount rate 1.82 % 1.97 % Operating Vehicle operating lease ROU assets (d) $ 86 $ 63 Short-term vehicle operating lease liabilities $ 64 $ 50 Long-term vehicle operating lease liabilities 22 14 Vehicle operating lease liabilities (e) $ 86 $ 64 Weighted average remaining lease term 1.4 years 1.3 years Weighted average discount rate 4.86 % 2.66 % _________ (a) Included in accounts payable and other current liabilities (b) Included in vehicles, net within Assets under vehicle programs (c) Included in debt within liabilities under vehicle programs (d) Included in receivables from vehicle manufacturers and other within assets under vehicle programs (e) Included in other within liabilities under vehicle programs Supplemental cash flow information related to leases is as follows: Year Ended December 31, 2022 2021 2020 Cash payments for lease liabilities within operating activities: Property operating leases $ 743 $ 639 $ 740 Vehicle finance leases 3 4 3 Vehicle operating leases 137 162 196 Cash payments for lease liabilities within financing activities: Vehicle finance leases 181 193 294 Non-cash activities - increase in ROU assets in exchange for lease liabilities: Property operating leases 812 484 666 Vehicle finance leases 153 223 257 Vehicle operating leases 161 115 111 Maturities of lease liabilities as of December 31, 2022 are as follows: Property Operating Leases Vehicle Vehicle Operating Leases Within 1 year $ 646 $ 44 $ 64 Between 1 and 2 years 441 4 18 Between 2 and 3 years 345 128 6 Between 3 and 4 years 286 — 1 Between 4 and 5 years 234 — — Thereafter 967 — — Total lease payments 2,919 176 89 Less: Imputed interest (480) — (3) Total $ 2,439 $ 176 $ 86 |
Leases | Lessor The following table presents our lease revenues disaggregated by geography: Year Ended December 31, 2022 2021 2020 Americas $ 9,401 $ 7,501 $ 3,864 Europe, Middle East and Africa 1,852 1,343 1,080 Asia and Australasia 576 342 299 Total lease revenues $ 11,829 $ 9,186 $ 5,243 The following table presents our lease revenues disaggregated by brand: Year Ended December 31, 2022 2021 2020 Avis $ 6,420 $ 4,828 $ 2,851 Budget 4,650 3,674 1,878 Other 759 684 514 Total lease revenues $ 11,829 $ 9,186 $ 5,243 ________ Other includes Zipcar and other operating brands. Lessee We have operating and finance leases for rental locations, corporate offices, vehicle rental fleet and equipment. Many of our operating leases for rental locations contain concession agreements with various airport authorities that allow us to conduct our 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 ROU assets and operating lease liabilities, and are recorded as variable lease expense as incurred. Our operating leases for rental locations often also require us to pay or reimburse operating expenses. We lease a portion of our vehicles under operating leases. As of December 31, 2022 and 2021, we have guaranteed up to $65 million and $102 million, respectively, of residual values for these vehicles at the end of their respective lease terms. We believe that, based on current market conditions, the net proceeds from the sale of these vehicles at the end of their lease terms will equal or exceed their net book values and therefore have not recorded a liability related to guaranteed residual values. The components of lease expense are as follows: Year Ended December 31, 2022 2021 2020 Property leases (a) Operating lease expense $ 703 $ 561 $ 575 Variable lease expense 520 433 152 Sublease income (5) (6) (6) Total property lease expense $ 1,218 $ 988 $ 721 Vehicle leases Finance lease expense: Amortization of ROU assets (b) $ 29 $ 37 $ 33 Interest on lease liabilities (c) 3 4 3 Operating lease expense (b) 138 156 195 Total vehicle lease expense $ 170 $ 197 $ 231 __________ (a) Primarily included in operating expenses and includes $(9) million, $(2) million and $60 million of minimum annual guaranteed rent in excess of concession fees as defined in our rental concession agreement for the years ended December 31, 2022, 2021 and 2020, respectively. (b) Included in vehicle depreciation and lease charges, net. (c) Included in vehicle interest, net. Supplemental balance sheet information related to leases is as follows: As of December 31, 2022 2021 Property leases Operating lease ROU assets $ 2,405 $ 2,368 Short-term operating lease liabilities (a) $ 555 $ 496 Long-term operating lease liabilities 1,884 1,910 Operating lease liabilities $ 2,439 $ 2,406 Weighted average remaining lease term 8.2 years 8.8 years Weighted average discount rate 4.30 % 3.84 % Vehicle leases Finance Finance lease ROU assets, gross $ 267 $ 353 Accumulated amortization (45) (72) Finance lease ROU assets, net (b) $ 222 $ 281 Short-term vehicle finance lease liabilities $ 44 $ 126 Long-term vehicle finance lease liabilities 132 116 Vehicle finance lease liabilities (c) $ 176 $ 242 Weighted average remaining lease term 2.0 years 2.2 years Weighted average discount rate 1.82 % 1.97 % Operating Vehicle operating lease ROU assets (d) $ 86 $ 63 Short-term vehicle operating lease liabilities $ 64 $ 50 Long-term vehicle operating lease liabilities 22 14 Vehicle operating lease liabilities (e) $ 86 $ 64 Weighted average remaining lease term 1.4 years 1.3 years Weighted average discount rate 4.86 % 2.66 % _________ (a) Included in accounts payable and other current liabilities (b) Included in vehicles, net within Assets under vehicle programs (c) Included in debt within liabilities under vehicle programs (d) Included in receivables from vehicle manufacturers and other within assets under vehicle programs (e) Included in other within liabilities under vehicle programs Supplemental cash flow information related to leases is as follows: Year Ended December 31, 2022 2021 2020 Cash payments for lease liabilities within operating activities: Property operating leases $ 743 $ 639 $ 740 Vehicle finance leases 3 4 3 Vehicle operating leases 137 162 196 Cash payments for lease liabilities within financing activities: Vehicle finance leases 181 193 294 Non-cash activities - increase in ROU assets in exchange for lease liabilities: Property operating leases 812 484 666 Vehicle finance leases 153 223 257 Vehicle operating leases 161 115 111 Maturities of lease liabilities as of December 31, 2022 are as follows: Property Operating Leases Vehicle Vehicle Operating Leases Within 1 year $ 646 $ 44 $ 64 Between 1 and 2 years 441 4 18 Between 2 and 3 years 345 128 6 Between 3 and 4 years 286 — 1 Between 4 and 5 years 234 — — Thereafter 967 — — Total lease payments 2,919 176 89 Less: Imputed interest (480) — (3) Total $ 2,439 $ 176 $ 86 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share (“EPS”) (shares in millions): Year Ended December 31, 2022 2021 2020 Net income (loss) attributable to Avis Budget Group, Inc. for basic and diluted EPS $ 2,764 $ 1,285 $ (684) Basic weighted average shares outstanding 47.3 64.9 70.5 Options and non-vested stock 1.1 1.2 — Diluted weighted average shares outstanding $ 48.4 $ 66.1 $ 70.5 Earnings (loss) per share: Basic $ 58.41 $ 19.79 $ (9.71) Diluted $ 57.16 $ 19.44 $ (9.71) The following table summarizes our outstanding common stock equivalents that were anti-dilutive and therefore excluded from the computation of diluted EPS (shares in millions): As of December 31, 2022 2021 2020 Non-vested stock (a) 0.2 — 1.2 __________ (a) The weighted average grant date fair value for anti-dilutive non-vested stock for 2022 and 2020 was $177.70 and $26.20, respectively. |
Restructuring and Other Related
Restructuring and Other Related Charges | 12 Months Ended |
Dec. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Related Charges | Restructuring During second quarter 2022, we initiated a restructuring plan to focus on consolidating our global operations by designing new processes and implementing new systems (“Cost Optimization”). As of December 31, 2022, we formally communicated and terminated employment of approximately 200 employees as part of this process. We expect no further restructuring expense related to this initiative. During the first quarter of 2021, we initiated a global restructuring plan to focus on cost discipline by reviewing headcounts, facilities and contractor agreements. We transformed our business as we exited the COVID-19 crisis by controlling fixed costs and matching variable costs to demand (“T21”). We expect no further restructuring expense related to this initiative. During first quarter 2020, we 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”). We expect no further restructuring expense related to this initiative. During third quarter 2019, we initiated a restructuring plan to exit our operations in Brazil by closing rental facilities, disposing of assets and terminating personnel (“Brazil”). This initiative is complete. During first quarter 2019, we initiated a restructuring plan to drive global efficiency by improving processes and consolidating functions, and to create new objectives and strategies for our truck rental operations in the U.S. by reducing headcount, large vehicles and rental locations (“T19”). This initiative is complete. The following tables summarize the change to our restructuring-related liabilities and identifies the amounts recorded within our reporting segments for restructuring charges and corresponding payments and utilizations: Personnel Related Facility Related Other (a) Total Balance at January 1, 2020 $ 3 $ 1 $ 2 $ 6 Restructuring expense: 2020 Optimization 73 3 3 79 Brazil 1 1 (2) — T19 — — 14 14 Restructuring payment/utilization: 2020 Optimization (68) (2) (1) (71) Brazil — (1) 2 1 T19 (5) — (15) (20) Balance as of December 31, 2020 $ 4 $ 2 $ 3 $ 9 Restructuring expense: T21 26 4 2 32 T19 — — (2) (2) Restructuring payment/utilization: T21 (17) (4) (4) (25) 2020 Optimization (5) — — (5) T19 (1) — 2 1 Balance as of December 31, 2021 $ 7 $ 2 $ 1 $ 10 Restructuring expense: Cost Optimization 9 — — 9 T21 3 — — 3 Brazil — — 1 1 Restructuring payment/utilization: Cost Optimization (6) — (1) (7) T21 (8) (1) — (9) 2020 Optimization (1) — — (1) Brazil — — (1) (1) T19 — (1) — (1) Balance as of December 31, 2022 $ 4 $ — $ — $ 4 __________ (a) Includes expenses primarily related to the disposition of vehicles. Americas International Total Balance at January 1, 2020 $ 2 $ 4 $ 6 Restructuring expense: 2020 Optimization 31 48 79 T19 14 — 14 Restructuring payment/utilization: 2020 Optimization (29) (42) (71) Brazil 1 — 1 T19 (16) (4) (20) Balance as of December 31, 2020 3 6 9 Restructuring expense: T21 5 27 32 T19 (2) — (2) Restructuring payment/utilization: T21 (4) (21) (25) 2020 Optimization (2) (3) (5) T19 2 (1) 1 Balance as of December 31, 2021 2 8 10 Restructuring expense: Cost Optimization 2 7 9 T21 1 2 3 Brazil 1 — 1 Restructuring payment/utilization: Cost Optimization (2) (5) (7) T21 (2) (7) (9) 2020 Optimization — (1) (1) Brazil (1) — (1) T19 — (1) (1) Balance as of December 31, 2022 $ 1 $ 3 $ 4 Other Related Charges Limited Voluntary Opportunity Plans (“LVOP”) During the second quarter of 2021, our operations in our International segment offered a voluntary termination program to certain employees in field operations and general and administrative functions for a limited time. These employees, if qualified, elected resignation from employment in return for enhanced severance benefits to be settled in cash. During the year ended December 31, 2021, we recorded other related charges of approximately $17 million in connection with the LVOP. As of December 31, 2021, approximately 130 employees elected to participate in the plan and the participants have been terminated. During 2020, we 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 year ended December 31, 2020, we recorded other related charges of approximately $18 million in connection with the LVOP. Officer Separation Costs In April 2022, we announced the departure of Veresh Sita as Executive Vice President and Chief Digital and Innovation Officer effective May 13, 2022. In connection with Mr. Sita’s separation, we recorded other related charges of approximately $1 million, inclusive of accelerated stock-based compensation expense, for the year ended December 31, 2022. In August 2020, we announced the resignation of John F. North, III as our Chief Financial Officer. Following his post-resignation transition to an advisory position, Mr. North continued to serve as a consultant through January 1, 2021. In connection with Mr. North’s departure, we recorded other related charges of approximately $5 million, inclusive of accelerated stock-based compensation expense for the year ended December 31, 2020. In March 2020, we announced the departure of Michael K. Tucker as Executive Vice President, General Counsel effective March 27, 2020. In connection with Mr. Tucker’s separation, we recorded other related charges of approximately $2 million for the year ended December 31, 2020. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | 2021 During 2021, we completed the acquisitions of various licensees in Europe and North America, for approximately $23 million, plus $22 million for acquired fleet. These investments were in-line with our strategy to re-acquire licensees when advantageous to expand our footprint of Company-operated locations. The acquired fleet was financed under our existing financing arrangements. In connection with these acquisitions, approximately $28 million was recorded to other intangibles related to franchise agreements. The licens e agreements are being amortized over a weighted average useful life of approximately one year. Differences between the preliminary allocation of purchase price and the final allocation were not material. 2020 |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible assets consisted of: As of December 31, 2022 As of December 31, 2021 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortized Intangible Assets License agreements (a) $ 290 $ 217 $ 73 $ 298 $ 193 $ 105 Customer relationships (b) 247 207 40 257 204 53 Other (c) 48 39 9 51 36 15 $ 585 $ 463 $ 122 $ 606 $ 433 $ 173 Unamortized Intangible Assets Goodwill $ 1,070 $ 1,108 Trademarks $ 544 $ 551 _________ (a) Primarily amortized over a period ranging from 0 to 40 years with a weighted average life of 16 years. (b) Primarily amortized over a period ranging from 3 to 20 years with a weighted average life of 12 years. (c) Primarily amortized over a period ranging from 2 to 10 years with a weighted average life of 9 years. Amortization expense relating to all intangible assets was as follows: Year Ended December 31, 2022 2021 2020 License agreements $ 29 $ 47 $ 37 Customer relationships 10 14 23 Other 5 6 5 Total $ 44 $ 67 $ 65 Based on our amortizable intangible assets at December 31, 2022, we expect related amortization expens e of approximately $27 million for 2023, $22 million for 2024, $16 million for 2025, $15 million for 2026 and $12 million for 2027 excluding effects of currency exchange rates. The carrying amounts of goodwill and related changes are as follows: Americas International Total Company Goodwill as of January 1, 2021 $ 2,140 $ 1,115 $ 3,255 Accumulated impairment losses as of January 1, 2021 (1,587) (531) (2,118) Goodwill as of January 1, 2021 553 584 1,137 Currency translation adjustments and other — (29) (29) Goodwill as of December 31, 2021 553 555 1,108 Currency translation adjustments and other (3) (35) (38) Goodwill as of December 31, 2022 $ 550 $ 520 $ 1,070 |
Vehicle Rental Activities
Vehicle Rental Activities | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Vehicle Rental Activities | The components of vehicles, net within assets under vehicle programs are as follows: As of December 31, 2022 2021 Rental vehicles $ 17,819 $ 14,612 Less: Accumulated depreciation (2,211) (1,911) 15,608 12,701 Vehicles held for sale 317 165 Vehicles, net investment in lease (a) 36 — Vehicles, net $ 15,961 $ 12,866 _______ (a) See Note 17 – Related Party Transactions The components of vehicle depreciation and lease charges, net are summarized below: Year Ended December 31, 2022 2021 2020 Depreciation expense $ 1,709 $ 1,402 $ 1,330 Lease charges 138 156 195 (Gain) loss on sale of vehicles, net (1,019) (361) (157) Vehicle depreciation and lease charges, net $ 828 $ 1,197 $ 1,368 At December 31, 2022, 2021 and 2020, we had payables related to vehicle purchases included in liabilities under vehicle programs - other o f $265 million , $142 million and $232 million, respectively, and receivables related to vehicle sales included in assets under vehicle programs - receivables from vehicle manufacturers and other of $212 million , $134 million and $162 million, respectively. Property and equipment, net consisted of: As of December 31, 2022 2021 Land $ 59 $ 50 Buildings and leasehold improvements 507 525 Capitalized software 906 932 Furniture, fixtures and equipment 382 426 Projects in process 89 84 Buses and support vehicles 90 80 2,033 2,097 Less: Accumulated depreciation and amortization (1,439) (1,560) Property and equipment, net $ 594 $ 537 Depreciation and amortization expense relating to property and equipment during 2022, 2021 and 2020 was $181 million, $205 million and $218 million, respectively (including $115 million, $105 million and $113 million, respectively, of amortization expense relating to capitalized software). At December 31, 2022, we had payables related to property and equipment included in accounts payable and other current liabilities and in other non-current liabilities of $19 million and $1 million, respectively. At December 31, 2021, we had payables related to property and equipment included in accounts payable and other current liabilities and in other non-current liabilities of $20 million and $2 million, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | The provision for (benefit from) income taxes consists of the following: Year Ended December 31, 2022 2021 2020 Current Federal $ — $ — $ (5) State 137 35 21 Foreign 61 12 29 Current income tax provision 198 47 45 Deferred Federal 622 309 (104) State (22) 78 (90) Foreign 82 (9) (123) Deferred income tax provision (benefit) 682 378 (317) Provision for (benefit from) income taxes $ 880 $ 425 $ (272) Income (loss) before income taxes is comprised of the following: Year Ended December 31, 2022 2021 2020 United States $ 3,114 $ 1,529 $ (590) Foreign 522 179 (366) Income (loss) before income taxes $ 3,636 $ 1,708 $ (956) Deferred income tax assets, net is comprised of the following: As of December 31, 2022 2021 Deferred income tax assets: Net tax loss carryforwards $ 1,109 $ 1,480 Long-term operating lease liabilities 666 625 Accrued liabilities and deferred revenue 231 272 Tax credits 38 11 Depreciation and amortization 25 19 Provision for doubtful accounts 19 18 Other 167 100 Valuation allowance (a) (101) (167) Deferred income tax assets 2,154 2,358 Deferred income tax liabilities: Operating lease right-of-use assets 657 614 Depreciation and amortization 90 102 Prepaid expenses 24 23 Other 4 4 Deferred income tax liabilities 775 743 Deferred income tax assets, net $ 1,379 $ 1,615 __________ (a) T he valuation allowance of $101 million at December 31, 2022 relates to tax loss carryforwards and certain deferred tax assets of $97 million and $4 million, respectively. The valuation allowance of $167 million at December 31, 2021 relates to tax loss carryforwards and certain deferred tax assets of $163 million and $4 million, respectively. The valuation allowances will be reduced when and if we determine it is more likely than not that the related deferred income tax assets will be realized. The decrease in valuation allowance as compared to the year ended December 31, 2021 is primarily related to a release of valuation allowance for certain state net operating losses. Deferred income tax assets and liabilities related to vehicle programs are comprised of the following: As of December 31, 2022 2021 Deferred income tax assets: Depreciation and amortization $ 63 $ 80 Other 22 19 Deferred income tax assets 85 99 Deferred income tax liabilities: Depreciation and amortization 2,815 2,321 Other 24 20 Deferred income tax liabilities 2,839 2,341 Deferred income tax liabilities under vehicle programs, net $ 2,754 $ 2,242 At December 31, 2022, we had U.S. federal net operating loss carryforwards of approximately $3.6 billion. The majority of the net operating loss carryforwards have an indefinite utilization period pursuant to the Tax Act and a significant remaining portion expires by 2031. Such net operating loss carryforwards are primarily related to accelerated depreciation of our U.S. vehicles. Currently, we do not record valuation allowances on the majority of our U.S. federal tax loss carryforwards as there are adequate deferred tax liabilities that could be realized within the carryforward period. At December 31, 2022, we had foreign net operating loss carryforwards of approximately $1.1 billion, the majority of which has an indefinite utilization period. At December 31, 2022, we had undistributed earnings of certain foreign subsidiaries of approximately $1.2 billion that we have indefinitely reinvested, and on which we have not recognized deferred taxes. Estimating the amount of potential tax is not practicable because of the complexity and variety of assumptions necessary to compute the tax. The reconciliation between the U.S. federal income tax statutory rate and our effective income tax rate is as follows: Year Ended December 31, 2022 2021 2020 U.S. federal statutory rate 21.0 % 21.0 % 21.0 % Adjustments to reconcile to the effective rate: State and local income taxes, net of federal tax benefits 3.9 5.5 4.8 Changes in valuation allowances (1.3) (0.6) — Taxes on foreign operations at rates different than U.S. federal statutory rates 1.2 (2.0) 3.1 Stock-based compensation (0.5) (0.3) (0.1) Other non-deductible (non-taxable) items 0.4 0.6 (0.4) Other (0.5) 0.7 — 24.2 % 24.9 % 28.4 % The following is a tabular reconciliation of the gross amount of unrecognized tax benefits for the year: 2022 2021 2020 Balance, January 1 $ 58 $ 57 $ 54 Additions for tax positions related to current year 4 4 4 Additions for tax positions for prior years 3 3 — Reductions for tax positions for prior years (5) (3) (1) Settlements (5) — (3) Foreign currency translation (2) (3) 3 Balance, December 31 $ 53 $ 58 $ 57 We do not anticipate that total unrecognized tax benefits will change significantly in 2023. We are subject to taxation in the United States and various foreign jurisdictions. As of December 31, 2022, the 2007 through 2021 tax years generally remain subject to examination by the federal tax authorities. The 2012 through 2021 tax years generally remain subject to examination by various state tax authorities. In significant foreign jurisdictions, the 2012 through 2021 tax years generally remain subject to examination by their respective tax authorities. Substantially all of the gross amount of the unrecognized tax benefits at December 31, 2022, 2021 and 2020, if recognized, would affect our provision for (benefit from) income taxes. As of December 31, 2022, our unrecognized tax benefits were offset by tax loss carryforwards and other deferred tax assets in the amount of $24 million. The following table presents unrecognized tax benefits: As of December 31, 2022 2021 Unrecognized tax benefit in non-current income taxes payable (a) $ 33 $ 30 Accrued interest payable on potential tax liabilities (b) 31 29 __________ (a) Pursuant to the agreements governing the disposition of certain subsidiaries in 2006, we are entitled to indemnification for certain predisposition tax contingencies. As of December 31, 2022 and 2021, $13 million, in each period, of unrecognized tax benefits are related to tax contingencies for which we believe we are entitled to indemnification. (b) We recognize potential interest related to unrecognized tax benefits within interest expense related to corporate debt, net on the accompanying Consolidated Statements of Operations. Penalties incurred during the years ended December 31, 2022, 2021 and 2020, were not significant and were recognized as a component of the provision for (benefit from) income taxes . |
Other Current Assets
Other Current Assets | 12 Months Ended |
Dec. 31, 2022 | |
Assets, Current [Abstract] | |
Other Current Assets | Other current assets consisted of: As of December 31, 2022 2021 Prepaid expenses $ 252 $ 205 Sales and use taxes 142 238 Other 112 95 Other current assets $ 506 $ 538 |
Property and Equipment, net
Property and Equipment, net | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, net | The components of vehicles, net within assets under vehicle programs are as follows: As of December 31, 2022 2021 Rental vehicles $ 17,819 $ 14,612 Less: Accumulated depreciation (2,211) (1,911) 15,608 12,701 Vehicles held for sale 317 165 Vehicles, net investment in lease (a) 36 — Vehicles, net $ 15,961 $ 12,866 _______ (a) See Note 17 – Related Party Transactions The components of vehicle depreciation and lease charges, net are summarized below: Year Ended December 31, 2022 2021 2020 Depreciation expense $ 1,709 $ 1,402 $ 1,330 Lease charges 138 156 195 (Gain) loss on sale of vehicles, net (1,019) (361) (157) Vehicle depreciation and lease charges, net $ 828 $ 1,197 $ 1,368 At December 31, 2022, 2021 and 2020, we had payables related to vehicle purchases included in liabilities under vehicle programs - other o f $265 million , $142 million and $232 million, respectively, and receivables related to vehicle sales included in assets under vehicle programs - receivables from vehicle manufacturers and other of $212 million , $134 million and $162 million, respectively. Property and equipment, net consisted of: As of December 31, 2022 2021 Land $ 59 $ 50 Buildings and leasehold improvements 507 525 Capitalized software 906 932 Furniture, fixtures and equipment 382 426 Projects in process 89 84 Buses and support vehicles 90 80 2,033 2,097 Less: Accumulated depreciation and amortization (1,439) (1,560) Property and equipment, net $ 594 $ 537 Depreciation and amortization expense relating to property and equipment during 2022, 2021 and 2020 was $181 million, $205 million and $218 million, respectively (including $115 million, $105 million and $113 million, respectively, of amortization expense relating to capitalized software). At December 31, 2022, we had payables related to property and equipment included in accounts payable and other current liabilities and in other non-current liabilities of $19 million and $1 million, respectively. At December 31, 2021, we had payables related to property and equipment included in accounts payable and other current liabilities and in other non-current liabilities of $20 million and $2 million, respectively. |
Accounts Payable and Other Curr
Accounts Payable and Other Current Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Accounts Payable and Accrued Liabilities, Current [Abstract] | |
Accounts Payable and Other Current Liabilities | Accounts payable and other current liabilities consisted of: As of December 31, 2022 2021 Short-term operating lease liabilities $ 555 $ 496 Accounts payable 466 407 Accrued advertising and marketing 268 218 Accrued sales and use taxes 246 313 Accrued payroll and related 205 193 Deferred lease revenues – current 188 185 Public liability and property damage insurance liabilities – current 174 159 Other 445 418 Accounts payable and other current liabilities $ 2,547 $ 2,389 |
Long-term Corporate Debt and Bo
Long-term Corporate Debt and Borrowing Arrangements | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Long-term Corporate Debt and Borrowing Arrangements | Long-term debt and other borrowing arrangements consisted of: Maturity As of December 31, 2022 2021 4.125% euro-denominated Senior Notes November 2024 $ 321 $ 341 4.500% euro-denominated Senior Notes May 2025 268 284 4.750% euro-denominated Senior Notes January 2026 375 398 5.750% Senior Notes July 2027 732 728 4.750% Senior Notes April 2028 500 500 5.375% Senior Notes March 2029 600 600 Floating Rate Term Loan (a) August 2027 1,176 1,187 Floating Rate Term Loan (a) March 2029 725 — Other (b) 18 19 Deferred financing fees (44) (48) Total 4,671 4,009 Less: Short-term debt and current portion of long-term debt 27 19 Long-term debt $ 4,644 $ 3,990 _________ (a) The floating rate term loan is part of our senior revolving credit facility, which is secured by pledges of capital stock of certain our subsidiaries, and liens on substantially all of our intellectual property and certain other real and personal property. (b) Primarily includes finance leases which are secured by liens on the related assets. Term Loan Floating Rate Term Loan due 2029. In March 2022, we entered into a $750 million Floating Rate Term Loan due March 2029, at a price of 97% of the aggregate principal amount, with interest paid monthly. The Term Loan bears interest at one-month Secured Overnight Financing Rate (“SOFR”) plus 350 basis points for an aggregate rate of 7.92%. Floating Rate Term Loan due 2027. In February 2020, we amended our Floating Rate Term Loan and extended its maturity term to 2027. We increased the outstanding borrowing principal amount of the Floating Rate Term Loan to $1.2 billion and on April 1, 2020 used the additional loan amount to redeem $100 million of our outstanding 5.500% Senior Notes due 2023. As of December 31, 2022, the loan bears interest at one-month LIBOR plus 1.75%, for an aggregate rate of 6.14%; however, we entered into an interest rate swap to hedge $700 million of our interest rate exposure related to the floating rate term loan at an aggregate rate of 4.75%. Senior Notes 4.125% euro-denominated Senior Notes due 2024. In September 2016, we issued €300 million of 4.125% euro-denominated Senior Notes due 2024 at par, with interest payable semi-annually. We have the right to redeem these notes in whole or in part at any time on or after November 15, 2019 at specified redemption prices plus accrued interest. In October 2016, we used the net proceeds from the offering primarily to redeem €275 million of our outstanding 6.000% euro-denominated Senior Notes due 2021. 4.500% euro-denominated Senior Notes due 2025. In March 2017, we issued €250 million of 4.500% euro-denominated Senior Notes due 2025, at par, with interest payable semi-annually. We have the right to redeem these notes in whole or in part on or after May 15, 2020 at specified redemption prices plus accrued interest. In April 2017, we used the net proceeds from the offering to redeem our outstanding €175 million principal amount of 6.000% euro-denominated Senior Notes due 2021 for €180 million plus accrued interest. In June 2017, we used the remaining proceeds to redeem a portion of our Floating Rate Senior Notes due 2017. 4.750% euro-denominated Senior Notes due 2026. In October 2018, we issued €350 million of 4.750% euro-denominated Senior Notes due 2026, at par, with interest payable semi-annually. We have the right to redeem these notes in whole or in part on or after September 30, 2021 at specified redemption prices plus accrued interest. In October 2018, we used the net proceeds from the offering to redeem our 5.125% Senior Notes due June 2022 for $410 million plus accrued interest. 5.750% Senior Notes due 2027. In July 2019, we issued $400 million of 5.750% Senior Notes due July 2027, at par, with interest payable semi-annually. We used the net proceeds from the offering to redeem $400 million principal amount of our 5.500% Senior Notes due April 2023. In August 2020, we issued $350 million of additional 5.750% Senior Notes due July 2027, at 92% of face value, under the indenture governing our existing 5.750% Senior Notes. We used the proceeds from this offering to redeem the outstanding $100 million in aggregate principal amount of our 5.500% Senior Notes due 2023, with the remainder being used for general corporate purposes. 4.750% Senior Notes due 2028. In March 2021, we issued $500 million of 4.750% Senior Notes du e April 2 028, at par, with interest paid semiannually. We have the right to redeem these notes in whole or in part at any time on or after April 1, 2024 at specified redemption prices plus accrued interest. 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 our outstanding 5.250% Senior Notes due 2025 for $142 million plus accrued interest. 5.375% Senior Notes due 2029. In March 2021, we issued $600 million of 5.375% Senior Notes due March 2029, at par, with interest paid semiannually. We have the right to redeem these notes in whole or in part at any time on or after March 1, 2024 at specified redemption prices plus accrued interest. Net proceeds, together with cash on hand, were used to redeem all of the outstanding 10.500% Senior Secured Notes due 2025 for $599 million plus accrued interest. In connection with the debt amendments and repayments for the years ended December 31, 2021 and 2020, we record ed $136 million and $9 million in early extinguishment of debt costs, respectively. The 5.750% Senior Notes, the 4.750% Senior Notes and the 5.375% Senior Notes are senior unsecured obligations of our Avis Budget Car Rental, LLC (“ABCR”) subsidiary, are guaranteed by us and certain of our domestic subsidiaries and rank equally in right of payment with all of our existing and future senior unsecured indebtedness. The 4.125% euro-denominated Senior Notes, 4.500% euro-denominated Senior Notes and 4.750% euro-denominated Senior Notes are unsecured obligations of our Avis Budget Finance plc subsidiary, are guaranteed on a senior basis by us and certain of our domestic subsidiaries and rank equally with all of our existing senior unsecured debt. Debt Maturities The following table provides contractual maturities of our corporate debt at December 31, 2022: Year Amount 2023 $ 27 2024 346 2025 291 2026 396 2027 1,867 Thereafter 1,788 $ 4,715 Committed Credit Facilities And Available Funding Arrangements At December 31, 2022, the committed corporate credit facilities available to us and/or our subsidiaries were as follows: Total Capacity Outstanding Borrowings Letters of Credit Issued Available Capacity Senior revolving credit facility maturing 2026 (a) $ 2,000 $ — $ 966 $ 1,034 __________ (a) The senior revolving credit facility bears interest at one-month LIBOR plus 175 basis points and is part of our 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 of our subsidiaries, and liens on substantially all of our intellectual property and certain other real and personal property. Debt Covenants The agreements governing our indebtedness contain restrictive covenants, including restrictions on dividends paid to us by certain of our subsidiaries, the incurrence of additional indebtedness and/or liens by us and certain of our subsidiaries, acquisitions, mergers, liquidations, and sale and leaseback transactions. Our senior credit facility also contains a maximum leverage ratio requirement. As of December 31, 2022, we were in compliance with the financial covenants governing our indebtedness. |
Debt under Vehicle Programs and
Debt under Vehicle Programs and Borrowing Arrangements | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt under Vehicle Programs and Borrowing Arrangements | Debt under vehicle programs, including related party debt due to Avis Budget Rental Car Funding (AESOP) LLC (“Avis Budget Rental Car Funding”), consisted of: As of December 31, 2022 2021 Americas – Debt due to Avis Budget Rental Car Funding (a) $ 11,322 $ 8,889 Americas – Debt borrowings 598 612 International – Debt borrowings 1,700 1,757 International – Finance leases 176 177 Other 65 3 Deferred financing fees (b) (52) (48) Total $ 13,809 $ 11,390 __________ (a) Increase reflects additional borrowings principally to fund increases in our rental fleet. (b) Deferred financing fees related to Debt due to Avis Budget Rental Car Funding as of December 31, 2022 and 2021 were $47 million and $41 million, respectively. Americas Debt due to Avis Budget Rental Car Funding . Avis Budget Rental Car Funding, an unconsolidated bankruptcy remote qualifying special purpose limited liability company, issues privately placed notes to investors as well as to banks and bank-sponsored conduit entities. Avis Budget Rental Car Funding uses the proceeds from its note issuances to make loans to our wholly-owned subsidiary, AESOP Leasing LP (“AESOP Leasing”), on a continuing basis. AESOP Leasing is required to use the proceeds of such loans to acquire or finance the acquisition of vehicles used in our rental car operations. By issuing debt through the Avis Budget Rental Car Funding program, we pay a lower rate of interest than if we had issued debt directly to third parties. Avis Budget Rental Car Funding is not consolidated, as we are not the “primary beneficiary” of Avis Budget Rental Car Funding. We determined that we are not the primary beneficiary because we do not have the obligation to absorb the potential losses or receive the benefits of Avis Budget Rental Car Funding’s activities since our only significant source of variability in the earnings, losses or cash flows of Avis Budget Rental Car Funding is exposure to our own creditworthiness, due to our loan from Avis Budget Rental Car Funding. Because Avis Budget Rental Car Funding is not consolidated, AESOP Leasing’s loan obligations to Avis Budget Rental Car Funding are reflected as related party debt on our Consolidated Balance Sheets. We also have an asset within Assets under vehicle programs on our Consolidated Balance Sheets which represents securities issued to us by Avis Budget Rental Car Funding. AESOP Leasing is consolidated, as we are the “primary beneficiary” of AESOP Leasing; as a result, the vehicles purchased by AESOP Leasing remain on our Consolidated Balance Sheets. We determined we are the primary beneficiary of AESOP Leasing, as we have the ability to direct its activities, an obligation to absorb a majority of its expected losses and the right to receive the benefits of AESOP Leasing’s activities. AESOP Leasing’s vehicles and related assets, which as of December 31, 2022, appro xim ate $13.2 billion and some of which are subject to manufacturer repurchase and guaranteed depreciation agreements, collateralize the debt issued by Avis Budget Rental Car Funding. The assets and liabilities of AESOP Leasing are presented on our Consolidated Balance Sheets within Assets under vehicle programs and Liabilities under vehicle programs, respectively. The assets of AESOP Leasing, included within assets under vehicle programs (excluding the investment in Avis Budget Rental Car Funding (AESOP) LLC—related party) are restricted. Such assets may be used only to repay the respective AESOP Leasing liabilities, included within Liabilities under vehicle programs, and to purchase new vehicles, although if certain collateral coverage requirements are met, AESOP Leasing may pay dividends from excess cash. The creditors of AESOP Leasing and Avis Budget Rental Car Funding have no recourse to our general credit. We periodically provide Avis Budget Rental Car Funding with non-contractually required support, in the form of equity and loans, to serve as additional collateral for the debt issued by Avis Budget Rental Car Funding. The business activities of Avis Budget Rental Car Funding are limited primarily to issuing indebtedness and using the proceeds thereof to make loans to AESOP Leasing for the purpose of acquiring or financing the acquisition of vehicles to be leased to our rental car subsidiaries and pledging its assets to secure the indebtedness. Because Avis Budget Rental Car Funding is not consolidated by us, its results of operations and cash flows are not reflected within our financial statements. In May 2021, AESOP issued $800 million of asset-backed notes with an expected final payment date of August 2026. In June 2021, AESOP issued $96 million, $105 million and $103 million of asset-backed notes with expected final payment dates of March 2024, September 2024 and August 2025, respectively. In November 2021, AESOP issued $650 million of asset-backed notes with an expected final payment date of February 2027. In April 2022, AESOP issued $660 million of asset-backed notes to investors with an expected final payment date of August 2027. In May 2022, AESOP issued $87 million, $68 million and $55 million of asset-backed notes with expected final payment dates of March 2025, March 2023 and September 2023, respectively. In June 2022, AESOP entered into $800 million of variable funding asset-backed notes to investors with a final payment date of September 2022. In July 2022, AESOP issued $389 million and $374 million of asset-backed notes to investors with expected final payment dates of February 2026 and February 2028, respectively. Following this issuance, amounts available under our $800 million variable funding asset-backed notes supplement entered into during June 2022 were reduced to zero. In November 2022, AESOP issued $500 million of asset-backed notes to investors with an expected final payment date of April 2026. We used the proceeds from these borrowings to fund the repayment of maturing vehicle-backed debt and the acquisition of rental cars in the United States. Borrowings under the Avis Budget Rental Car Funding program primarily represent fixed rate notes and had a weighted average interest rate of 4.07% and 2.66% as of December 31, 2022 and 2021 respectively. Debt borrowings . We finance the acquisition of vehicles used in our Canadian rental operations through a consolidated, bankruptcy remote special-purpose entity, which issues privately placed notes to investors and bank-sponsored conduits. We finance the acquisition of fleet for our truck rental operations in the United States through a combination of debt facilities and leases. These debt borrowings represent a mix of fixed and floating rate debt and had a weighted average interest rate of 4.26% and 2.64% as of December 31, 2022 and 2021 respectively. International Debt borrowings . In EMEA we operate a €1.7 billion European rental fleet securitization program, with maturity in 2024, which is used to finance fleet purchases for certain of our European operations. The International borrowings primarily represent floating rate notes and had a weighted average interest rate of 3.92% and 1.66% as of December 31, 2022 and 2021, respectively. Finance leases. We obtain a portion of our International vehicles under finance lease arrangements. For the years ended December 31, 2022 and 2021, the weighted average interest rate on these borrowings was 1.82% and 1.25% respectively. All finance leases are on a fixed repayment basis and interest rates are fixed at the contract date. Debt Maturities The following table provides the contractual maturities of our debt under vehicle programs, including related party debt due to Avis Budget Rental Car Funding, at December 31, 2022: Debt under Vehicle Programs (a) 2023 (b) $ 2,235 2024 (c) 5,485 2025 2,351 2026 2,124 2027 1,238 Thereafter 428 $ 13,861 __________ (a) Vehicle-backed debt primarily represents asset-backed securities. (b) Includes $0.4 billion of bank and bank-sponsored facilities. (c) Includes $2.4 billion of bank and bank-sponsored facilities. Committed Credit Facilities And Available Funding Arrangements The following table presents available funding under our debt arrangements related to our vehicle programs, including related party debt due to Avis Budget Rental Car Funding, at December 31, 2022: Total Capacity (a) Outstanding Borrowings (b) Available Capacity Americas – Debt due to Avis Budget Rental Car Funding $ 11,921 $ 11,322 $ 599 Americas – Debt borrowings 970 598 372 International – Debt borrowings 2,628 1,700 928 International – Finance leases 208 176 32 Other 65 65 — Total $ 15,792 $ 13,861 $ 1,931 __________ (a) Capacity is subject to maintaining sufficient assets to collateralize debt. (b) The outstanding debt is collateralized by vehicles and related assets of $13.0 billion for Americas - Debt due to Avis Budget Rental Car Funding; $1.0 billion for Americas - Debt borrowings; $2.6 billion for International - Debt borrowings; and $0.2 billion for International - Finance leases. Debt Covenants The agreements under our vehicle-backed funding programs contain restrictive covenants, including restrictions on dividends paid to us by certain of our subsidiaries and restrictions on indebtedness, mergers, liens, liquidations and sale and leaseback transactions, and in some cases also require compliance with certain financial requirements. As of December 31, 2022, we are not aware of any instances of non-compliance with any of the financial or restrictive covenants contained in the debt agreements under our vehicle-backed funding programs. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Contingencies In 2006, we completed the spin-offs of our Realogy (formally Realogy, now Anywhere Real Estate Inc.) and Wyndham subsidiaries. We do 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 us in relation to our consolidated financial position or liquidity, as Realogy and Wyndham each have agreed to assume responsibility for these liabilities. We are also named in litigation that is primarily related to the businesses of our former subsidiaries, including Realogy and Wyndham. We are entitled to indemnification from such entities for any liability resulting from such litigation. In November 2011, Jose Mendez v. Avis Budget Group Inc., et al. was filed in U.S. District Court for the District of New Jersey. The plaintiff seeks to represent a purported nationwide class and two sub-classes of certain renters of vehicles from our Avis and Budget subsidiaries from April 2007 through December 2015. The plaintiff seeks damages in connection with claims relating to our electronic toll service, including that administrative fees and toll charges were not properly disclosed to customers and/or were excessive. Plaintiff’s motion for class certification was approved by the Court in November 2017. The parties have entered into a settlement agreement and the Court has entered an order preliminarily approving the settlement. We have been named as a defendant in other purported consumer class action law suits, including a class action filed against us in Florida seeking damages in connection with a breach of contract claim and two purported class action suits filed against us in New Jersey, one related to fines and fees charged to car renters by us for violations incurred during the course of their rental and another related to ancillary charges at our Payless subsidiary. In the Florida lawsuit, the Court has entered an order preliminarily approving a proposed settlement. We are currently involved, and in the future may be involved, in claims and/or legal proceedings, including class actions, and governmental inquiries that are incidental to our 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 we believe that our accruals are adequate and/or that we have valid defenses in these matters, unfavorable resolutions could occur. We estimate 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 December 31, 2022. We do not believe that the impact should result in a material liability to us in relation to our consolidated financial condition or results of operations. Commitments to Purchase Vehicles We maintain agreements with vehicle manufacturers under which we have agreed to purchase approximately $6.7 billion of vehicles from manufacturers over the next 12 months, a $0.8 billion increase compared to December 31, 2021, financed primarily through the issuance of vehicle-backed debt and cash received upon the disposition of vehicles. Certain of these commitments are subject to the vehicle manufacturers satisfying their obligations under their respective repurchase and guaranteed depreciation agreements. Other Purchase Commitments In the normal course of business, we make various commitments to purchase other goods or services from specific suppliers, including those related to marketing, advertising, computer services and capital expenditures. As of December 31, 2022, we had approximately $102 million of purchase obligations, which extend through 2027. Concentrations Concentrations of credit risk at December 31, 2022, include (i) risks related to our repurchase and guaranteed depreciation agreements with domestic and foreign car manufacturers and primarily with respect to receivables for program cars that have been disposed, but for which we have not yet received payment from the manufacturers and (ii) risks related to Realogy and Wyndham, including receivables of $27 million and $16 million, respectively, related to certain contingent, income tax and other corporate liabilities assumed by Realogy and Wyndham in connection with their disposition. Asset Retirement Obligations We maintain a liability for asset retirement obligations. An asset retirement obligation is a legal obligation to perform certain activities in connection with the retirement, disposal or abandonment of assets. Our asset retirement obligations, which are measured at discounted fair values, are primarily related to the removal of underground gasoline storage tanks at our rental facilities. The liability accrued for asset retirement obligations was $26 million and $28 million at December 31, 2022 and 2021, respectively. Standard Guarantees/Indemnifications In the ordinary course of business, we enter into numerous agreements that contain standard guarantees and indemnities whereby we agree to indemnify another party, among other things, for performance under contracts and any breaches of representations and warranties thereunder. In addition, many of these parties are also indemnified against any third-party claim resulting from the transaction that is contemplated in the underlying agreement. Such guarantees or indemnifications are granted under various agreements, including those governing (i) purchases, sales or outsourcing of assets, businesses or activities, (ii) leases of real estate, (iii) licensing of trademarks, (iv) access to credit facilities and use of derivatives and (v) issuances of debt or equity securities. The guarantees or indemnifications issued are for the benefit of the (i) buyers in sale agreements and sellers in purchase agreements, (ii) landlords in lease contracts, (iii) licensees under licensing agreements, (iv) financial institutions in credit facility arrangements and derivative contracts and (v) underwriters and placement agents in debt or equity security issuances. While some of these guarantees extend only for the duration of the underlying agreement, many may survive the expiration of the term of the agreement or extend into perpetuity (unless subject to a legal statute of limitations). There are no specific limitations on the maximum potential amount of future payments that we could be required to make under these guarantees, nor are we able to develop an estimate of the maximum potential amount of future payments to be made under these guarantees as the triggering events are not subject to predictability. With respect to certain of the aforementioned guarantees, such as indemnifications provided to landlords against third-party claims for the use of real estate property leased by us, we maintains insurance coverage that mitigates our potential exposure. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Stockholders' Equity | Cash Dividend Payments During 2022, 2021 and 2020, we did not declare or pay any cash dividends. Our ability to pay dividends to holders of our common stock is limited by our senior credit facility, the indentures governing our senior notes and our vehicle financing programs. Share Repurchases As of December 31, 2022, our Board of Directors authorized the repurchase of up to approximately $7.1 billion of our common stock under a plan originally approved in 2013 and subsequently expanded. During 2022, 2021 and 2020, we repurchased approximately 36 million shares of common stock at a cost of approximately $4.8 billion under the program. As of December 31, 2022, approximately $691 million of authorization remained available to repurchase common stock under this plan. Share Issuances On February 10, 2020, we announced we 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 our common stock at a price per share equal to the closing price of our common stock on February 7, 2020. We issued the common stock from treasury shares. Accumulated Other Comprehensive Income (Loss) The components of accumulated other comprehensive income (loss) are as follows: Currency Translation Adjustments (a) Net Unrealized Gains (Losses) on Cash Flow Hedges (b) Minimum Pension Liability Adjustment (c) Accumulated Other Comprehensive Income (Loss) Balance, January 1, 2020 $ 9 $ (20) $ (146) $ (157) Other comprehensive income (loss) before reclassifications 33 (39) (36) (42) Amounts reclassified from accumulated other comprehensive income (loss) (2) 8 6 12 Net current-period other comprehensive income (loss) 31 (31) (30) (30) Balance, December 31, 2020 40 (51) (176) (187) Other comprehensive income (loss) before reclassifications (35) 18 39 22 Amounts reclassified from accumulated other comprehensive income (loss) 11 14 7 32 Net current-period other comprehensive income (loss) (24) 32 46 54 Balance, December 31, 2021 16 (19) (130) (133) Other comprehensive income (loss) before reclassifications (46) 57 11 22 Amounts reclassified from accumulated other comprehensive income (loss) — 7 3 10 Net current-period other comprehensive income (loss) (46) 64 14 32 Balance, December 31, 2022 $ (30) $ 45 $ (116) $ (101) __________ All components of accumulated other comprehensive income (loss) are net of tax, except currency translation adjustments, which exclude income taxes related to indefinite investments in foreign subsidiaries (see Note 9 – Income Taxes for impacts of the Tax Act) and include a $114 million gain, net of tax, related to our hedge of our investment in euro-denominated foreign operations (See Note 20 – Financial Instruments). (a) For the years ended December 31, 2021 and 2020, the amounts were reclassified from accumulated other comprehensive income (loss) into restructuring and other related charges. (b) For the years ended December 31, 2022, 2021 and 2020, the amounts reclassified from accumulated other comprehensive income (loss) into corporate interest expense were $9 million ($7 million, net of tax), $17 million ($12 million, net of tax) and $9 million ($6 million, net of tax), respectively. For the years ended December 31, 2021 and 2020, the amounts reclassified from accumulated other comprehensive income (loss) into vehicle interest expense were $2 million ($2 million, net of tax). (c) For the years ended December 31, 2022, 2021 and 2020, amounts reclassified from accumulated other comprehensive income (loss) into selling, general and administrative expenses were $5 million ($3 million, net of tax), $9 million ($7 million, net of tax) and $9 million ($6 million, net of tax), respectively. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | SRS Mobility Ventures, LLC In 2021, SRS Mobility Ventures, LLC acquired a 33 1/3% Class A Membership Interest in one of our subsidiaries at fair value of $37.5 million. SRS Mobility Ventures, LLC is an affiliate of our largest shareholder, SRS Investment Management, LLC. On September 1, 2022, through the issuance of Class B Preferred Voting Membership Interests, SRS Mobility Ventures, LLC increased their ownership in this subsidiary to 51% at a fair value of $62 million. As a result, we deconsolidated our former subsidiary, Avis Mobility Ventures LLC (“AMV”), from our financial statements and now record our proportional share of the former subsidiary’s income or loss within other (income) expense, net in our Consolidated Statements of Operations as we do not have the ability to direct the significant activities of the former subsidiary and are therefore no longer primary beneficiary of the VIE. In accordance with ASC Topic 810-10-40, we must deconsolidate a subsidiary as of the date we cease to have a controlling interest in that subsidiary and recognize the gain or loss in net income at that time. The fair value of our retained investment was determined utilizing a discounted cash flow methodology based on various assumptions, including projections of future cash flows, which include forecast of future revenue and EBITDA. Upon deconsolidation, our former subsidiary had a net asset carrying amount of $49 million resulting in a gain of $10 million, which is reported within other (income) expense, net during the year ended December 31, 2022. We provide vehicles and related fleet services to AMV, as well as certain administrative services to support their operations. For the year ended December 31, 2022, we recognized $7 million of income related to these services within other (income) expense, net. At December 31, 2022, we had receivables from AMV of $6 million and a net investment in vehicle finance leases of $36 million. The carrying amount of our equity investment was approximately $49 million at December 31, 2022 and is recorded within other non-current assets in our Consolidated Balance Sheet. For the year ended December 31, 2022, we recorded losses of $10 million within other (income) expense, net related to our equity investment. SRS Investment Management LLC On December 23, 2022, we also entered into an amended and restated cooperation agreement with SRS Investment Management LLC and certain of its affiliates. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Our Amended and Restated Equity and Incentive Plan provides for the grant of options, stock appreciation rights, restricted stock, restricted stock units (“RSUs”) and other stock- or cash-based awards to employees, directors and other individuals who perform services for us and our subsidiaries. The maximum number of shares reserved for grant of awards under the plan is 22.5 million , with approximately 4.1 million shares available as of December 31, 2022. We typically settle stock-based awards with treasury shares. Time-based awards generally vest ratably over a three-year period following the date of grant, and performance- or market-based awards generally vest three years following the date of grant based on the attainment of performance- or market-based goals, all of which are subject to a service condition. Stock Unit Awards Stock unit awards entitle the holder to receive shares of common stock upon vesting on a one-to-one basis. Certain performance-based RSUs vest based upon the level of performance attained, but vesting can increase (typically by up to 20%) if certain relative total shareholder return goals are achieved. Market-based RSUs generally vest based on the level of total shareholder return or absolute stock price attainment. In June 2020, we granted market-based 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 outlined in the table below. During the years ended December 31, 2022 and 2021, we did not issue any stock unit awards containing a market condition. Expected volatility of stock price 91% Risk-free interest rate 0.18% Valuation period 3 years Dividend yield —% Annual activity related to stock units consisted of (in thousands of shares): Number of Shares Weighted Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value (in millions) Time-based RSUs Outstanding at January 1, 2022 671 $ 39.39 Granted (a) 180 172.34 Vested (b) (360) 37.35 Forfeited (40) 61.80 Outstanding and expected to vest at December 31, 2022 (c) 451 $ 92.06 1.1 $ 74 Performance-based and market-based RSUs Outstanding at January 1, 2022 886 $ 35.40 Granted (a) 99 193.48 Vested (b) (254) 34.24 Forfeited (40) 49.75 Outstanding at December 31, 2022 691 $ 57.56 0.9 $ 113 Outstanding and expected to vest at December 31, 2022 (c) 683 $ 55.99 0.9 $ 112 __________ (a) Reflects the maximum number of stock units assuming achievement of all performance-, market- and time-vesting criteria and does not include those for non-employee directors, which are discussed separately below. The weighted-average fair value of time-based RSUs, and performance-based and market-based RSUs granted in 2021 was $65.23 and $62.27, respectively, and the weighted-average fair value of time-based RSUs and performance-based RSUs granted in 2020 was $23.14 and $21.06, respectively. (b) The total fair value of RSUs vested during 2022, 2021 and 2020 was $22 million, $17 million and $19 million, respectively. (c) Aggregate unrecognized compensation expense related to time-based RSUs and performance-based and market-based RSUs amounted to $49 million and will be recognized over a weighted average vesting period of 1.0 year. Non-employee Directors Deferred Compensation Plan We grant stock awards on an annual basis to non-employee directors representing between 50% and 100% of a director’s annual compensation and such awards could be deferred under the Non-employee Directors Deferred Compensation Plan. During 2022, 2021 and 2020, we granted 2,500, 8,800 and 34,000 awards, respectively, to non-employee directors. Stock-Compensation Expense During 2022, 2021 and 2020, we recorded stock-based compensation expense of $25 million ($17 million, net of tax), $30 million ($21 million, net of tax) and $9 million ($7 million, net of tax), respectively. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Defined Contribution Savings Plans We sponsor several defined contribution savings plans in the United States and certain foreign subsidiaries that provide certain of our eligible employees an opportunity to accumulate funds for retirement. We match portions of the contributions of participating employees on the basis specified by the plans. Our contributions to these plans were $26 million, $22 million and $23 million during 2022, 2021 and 2020, respectively. Defined Benefit Pension Plans We sponsor defined benefit pension plans in the United States and in certain foreign subsidiaries with some plans offering participation in the plans at the employees’ option. Under these plans, benefits are based on an employee’s years of credited service and a percentage of final average compensation. However, the majority of the plans are closed to new employees and participants are no longer accruing benefits. The funded status of the defined benefit pension plans is recognized on the Consolidated Balance Sheets and the gains or losses and prior service costs or credits that arise during the period, but are not recognized as components of net periodic benefit cost, are recognized as a component of accumulated other comprehensive loss, net of tax. The components of net periodic (benefit) cost consisted of the following: Year Ended December 31, 2022 2021 2020 Service cost (a) $ 5 $ 6 $ 5 Interest cost (b) 16 12 17 Expected return on plan assets (b) (37) (35) (31) Amortization of unrecognized amounts (b) 5 9 9 Net periodic (benefit) cost $ (11) $ (8) $ — __________ (a) For the years ended December 31, 2022, 2021, and 2020, $4 million was included in operating expenses, in each period, and $1 million, $2 million and $1 million was included in selling, general and administrative expenses, respectively. (b) Included in selling, general and administrative expenses. We use a measurement date of December 31 for our pension plans. The funded status of the pension plans were as follows: As of December 31, Change in Benefit Obligation 2022 2021 Benefit obligation at end of prior year $ 881 $ 926 Service cost 5 6 Interest cost 16 12 Actuarial (gain) loss (247) (17) Plan amendments (1) (3) Currency translation adjustment (51) (12) Net benefits paid (28) (31) Benefit obligation at end of current year $ 575 $ 881 Change in Plan Assets Fair value of assets at end of prior year $ 772 $ 722 Actual return on plan assets (196) 71 Employer contributions 12 16 Currency translation adjustment (46) (5) Net benefits paid (28) (32) Fair value of assets at end of current year $ 514 $ 772 Amounts recognized in the statement of financial position consist of the following: As of December 31, Funded Status 2022 2021 Classification of net balance sheet assets (liabilities): Non-current assets $ 36 $ 50 Current liabilities (4) (5) Non-current liabilities (93) (154) Net funded status $ (61) $ (109) The following assumptions were used to determine pension obligations and pension costs for the principal plans in which our employees participated: For the Year Ended December 31, U.S. Pension Benefit Plans 2022 2021 2020 Discount rate: Net periodic benefit cost 2.67 % 2.25 % 3.10 % Benefit obligation 5.18 % 2.67 % 2.25 % Long-term rate of return on plan assets 6.25 % 6.75 % 7.00 % Non-U.S. Pension Benefit Plans Discount rate: Net periodic benefit cost 1.83 % 1.40 % 1.95 % Benefit obligation 4.79 % 1.83 % 1.40 % Long-term rate of return on plan assets 4.39 % 3.71 % 3.80 % To select discount rates for our defined benefit pension plans, we use a modeling process that involves matching the expected cash outflows of such plans, to yield curves constructed from portfolios of AA-rated fixed-income debt instruments. We use the average yields of the hypothetical portfolios as a discount rate benchmark. Our expected rate of return on plan assets of 6.25% and 4.39% for the U.S. plans and non-U.S. plans, respectively, used to determine pension obligations and pension costs, are long-term rates based on historic plan asset returns in individual jurisdictions, over varying long-term periods combined with current market expectations and broad asset mix considerations. As of December 31, 2022 and 2021, plans with projected benefit obligations in excess of plan assets had projected benefit obligations of $332 million and $453 million, respectively, and plan assets of $235 million and $297 million, respectively. As of December 31, 2022 and 2021, plans with accumulated benefit obligations in excess of plan assets had accumulated benefit obligations of $329 million and $453 million, respectively, and plan assets of $235 million and $303 million, respectively. The accumulated benefit obligation for all plans was $571 million and $872 million as of December 31, 2022 and 2021, respectively. We expect to contribute approximately $1 million to the plans in 2023. Our defined benefit pension plans’ assets are invested primarily in mutual funds and may change in value due to various risks, such as interest rate and credit risk and overall market volatility. Due to the level of risk associated with investment securities, it is reasonably possible that changes in the values of the pension plans’ investment securities will occur in the near term and that such changes would materially affect the amounts reported in our financial statements. The defined benefit pension plans’ investment goals and objectives are managed by us or Company-appointed and member-appointed trustees with consultation from independent investment advisors. While the objectives may vary slightly by country and jurisdiction, collectively we seek to produce returns on pension plan investments, which are based on levels of liquidity and investment risk that we believe are prudent and reasonable, given prevailing capital market conditions. The pension plans’ assets are managed in the long-term interests of the participants and the beneficiaries of the plans. A suitable strategic asset allocation benchmark is determined for each plan to maintain a diversified portfolio, taking into account government requirements, if any, regarding unnecessary investment risk and protection of pension plans’ assets. We believe that diversification of the pension plans’ assets is an important investment strategy to provide reasonable assurance that no single security or class of securities will have a disproportionate impact on the pension plans. As such, we allocate assets among traditional equity, fixed income (government issued securities, corporate bonds and short-term cash investments) and other investment strategies. The equity component’s purpose is to provide a total return that will help preserve the purchasing power of the assets. The pension plans hold various mutual funds that invest in equity securities and are diversified among funds that invest in large cap, small cap, growth, value and international stocks as well as funds that are intended to “track” an index, such as the S&P 500. The equity investments in the portfolios will represent a greater assumption of market volatility and risk as well as provide higher anticipated total return over the long term. The equity component is expected to approximate 35%-55% of the plans’ assets. The purpose of the fixed income component is to provide a deflation hedge, to reduce the overall volatility of the pension plans’ assets in relation to the liability and to produce current income. The pension plans hold mutual funds that invest in securities issued by governments, government agencies and corporations. The fixed income component is expected to approximate 35%-55% of the plans’ assets. The purpose of the alternative investment component is to provide diversification and risk reduction through less correlated investment strategies with the goal of enhanced returns and downside protection. Alternative strategies will not be used if they are designed solely to enhance return and/or employ significant leverage. Diversification of asset categories, investment styles and managers is central to managing investment risk. The alternative investment component is expected to approximate 5%-15% of the pl ans’ assets. The following table presents the defined benefit pension plans’ assets measured at fair v alue: As of December 31, 2022 Asset Class Level 1 Level 2 Level 3 Total Cash equivalents and short-term investments $ 18 $ 6 $ — $ 24 U.S. equities 69 19 — 88 Non-U.S. equities 39 30 — 69 Government bonds — 2 — 2 Corporate bonds 126 48 — 174 Other assets 2 101 54 157 Total assets $ 254 $ 206 $ 54 $ 514 __________ For the year ended December 31, 2022, we purchased and classified $54 million of investments as Level 3. As of December 31, 2021 Asset Class Level 1 Level 2 Level 3 Total Cash equivalents and short-term investments $ 14 $ 48 $ — $ 62 U.S. equities 115 45 — 160 Non-U.S. equities 56 89 — 145 Government bonds 6 11 — 17 Corporate bonds 134 51 — 185 Other assets 5 152 46 203 Total assets $ 330 $ 396 $ 46 $ 772 __________ For the year ended December 31, 2021, we purchased and classified $46 million of investments as Level 3. We estimate that future benefit payments from plan assets will be $30 million , $31 million, $32 million, $33 million, $34 million and $183 million for 2023, 2024, 2025, 2026, 2027 and 2028 to 2032, respectively. Multiemployer Plans We contribute to a number of multiemployer plans under the terms of collective-bargaining agreements that cover a portion of our employees. The risks of participating in these multiemployer plans are different from single-employer plans in the following aspects: (i) assets contributed to the multiemployer plan by one employer may be used to provide benefits to employees of other participating employers; (ii) if a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers; (iii) if we elect to stop participating in a multiemployer plan, we may be required to contribute to such plan an amount based on the under-funded status of the plan; and (iv) we have no involvement in the management of the multiemployer plans’ investments. For the year ended December 31, 2022, we contributed $8 million and for the years ended December 31, 2021 and 2020, we contributed $7 million, in each period, to multiemployer plans. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments | Risk Management Currency Risk . We use currency exchange contracts to manage our exposure to changes in currency exchange rates associated with certain of our non-U.S.-dollar denominated receivables and forecasted royalties, forecasted earnings of non-U.S. subsidiaries and forecasted non-U.S.-dollar denominated acquisitions. We primarily hedge a portion of our 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. We have designated our euro-denominated notes as a hedge of our investment in euro-denominated foreign operations. The estimated net amount of existing gains or losses we expect 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 . We use various hedging strategies including interest rate swaps and interest rate caps to create what we deem an appropriate mix of fixed and floating rate assets and liabilities. We use interest rate swaps and interest rate caps to manage the risk related to our floating rate corporate debt and our floating rate vehicle-backed debt. We record the changes in the fair value of our cash flow hedges to other comprehensive income (loss), net of tax, and subsequently reclassify 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. We record 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. We estimate that approximately $16 million of gain currently recorded in accumulated other comprehensive income (loss) will be recognized in earnings over the next 12 months. Commodity Risk. We periodically enter into derivative commodity contracts to manage our 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. Credit Risk and Exposure . We are exposed to counterparty credit risks in the event of nonperformance by counterparties to various agreements and sales transactions. We manage such risk by evaluating the financial position and creditworthiness of such counterparties and by requiring collateral in certain instances in which financing is provided. We mitigate counterparty credit risk associated with our derivative contracts by monitoring the amount for which we are at risk with each counterparty, periodically evaluating counterparty creditworthiness and financial position, and where possible, dispersing our risk among multiple counterparties. There were no significant concentrations of credit risk with any individual counterparty or groups of counterparties at December 31, 2022 or 2021, other than (i) risks related to our repurchase and guaranteed depreciation agreements with domestic and foreign car manufacturers, and primarily with respect to receivables for program cars that were disposed but for which we have not yet received payment from the manufacturers (see Note 2 – Summary of Significant Accounting Policies), (ii) receivables from Realogy and Wyndham related to certain contingent, income tax and other corporate liabilities assumed by Realogy and Wyndham in connection with their disposition and (iii) risks related to leases which have been assumed by Realogy but of which we are a guarantor. Concentrations of credit risk associated with trade receivables are considered minimal due to our diverse customer base. We do not normally require collateral or other security to support credit sales. Fair Value Derivative instruments and hedging activities As described above, derivative assets and liabilities consist principally of currency exchange contracts, interest rate swaps, interest rate caps and commodity contracts. We held derivative instruments with absolute notional values as follows: As of December 31, 2022 2021 Foreign exchange contracts $ 1,160 $ 1,655 Interest rate caps (a) 14,219 11,900 Interest rate swaps 1,450 1,450 __________ (a) Represents $9.8 billion of interest rate caps sold, partially offset by approximately $4.4 billion of interest rate caps purchased at December 31, 2022 and $7.2 billion of interest rate caps sold, partially offset by approximately $4.7 billion of interest rate caps purchased at December 31, 2021. These amounts exclude $6.2 billion and $3.0 billion of interest rate caps purchased by our Avis Budget Rental Car Funding subsidiary at December 31, 2022 and 2021, respectively. Fair values (Level 2) of derivative instruments are as follows: As of December 31, 2022 As of December 31, 2021 Fair Value, Asset Fair Value, Liability Fair Value, Asset Fair Value, Liability Derivatives designated as hedging instruments Interest rate swaps (a) $ 61 $ — $ 2 $ 27 Derivatives not designated as hedging instruments Foreign exchange contracts (b) 4 6 7 10 Interest rate caps (c) 46 111 11 15 Total $ 111 $ 117 $ 20 $ 52 __________ Amounts in this table exclude derivatives issued by Avis Budget Rental Car Funding, as it is not consolidated by us; 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 16 – 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 our Consolidated Financial Statements are as follows: Year Ended December 31, 2022 2021 2020 Financial instruments designated as hedging instruments (a) Interest rate swaps (b) $ 64 $ 32 $ (31) Euro-denominated notes (c) 44 56 (67) Financial instruments not designated as hedging instruments (d) Foreign exchange contracts (e) 36 (3) (5) Interest rate caps (f) (1) (1) — Commodity contracts (g) — — (6) Total $ 143 $ 84 $ (109) __________ (a) Recognized, net of tax, as a component of accumulated 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 16 – Stockholders' Equity for amounts reclassified from accumulated other comprehensive income (loss) 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 year ended December 31, 2022, included a $39 million gain in interest expense and a $3 million loss in operating expenses. For the year ended December 31, 2021, included a $2 million loss in interest expense and a $1 million loss in operating expenses. For the year ended December 31, 2020, included a $3 million loss in interest expense and a $2 million loss in operating expenses. (f) Primarily included in vehicle interest, net. (g) Included in operating expenses. Debt Instruments The carrying amounts and estimated fair values (Level 2) of debt instruments are as follows: As of December 31, 2022 As of December 31, 2021 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Corporate debt Short-term debt and current portion of long-term debt $ 27 $ 26 $ 19 $ 18 Long-term debt 4,644 4,411 3,990 4,153 Debt under vehicle programs Vehicle-backed debt due to Avis Budget Rental Car Funding $ 11,275 $ 10,848 $ 8,848 $ 9,009 Vehicle-backed debt 2,423 2,422 2,528 2,559 Interest rate swaps and interest rate caps (a) 111 111 14 14 ___________ (a) Derivatives in liability position. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | Our chief operating decision-maker assesses performance and allocates resources based upon the separate financial information of our operating segments. In identifying our reportable segments, we also consider the nature of services provided by our operating segments, the geographical areas in which the segments operate and other relevant factors. We aggregate certain of our operating segments into our reportable segments. Management evaluates the operating results of each of our reportable segments based upon revenues and “Adjusted EBITDA,” which we define as income 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, net, which includes amounts recorded in excess of $5 million related to class action lawsuits; non-operational charges related to shareholder activist activity, which include third party advisory, legal and other professional fees; COVID-19 charges, net; other (income) expense, net; and income taxes. We revised our definition of Adjusted EBITDA to exclude other (income) expense, net. We did not revise prior years' Adjusted EBITDA because there were no other charges similar in nature. We believe Adjusted EBITDA is useful as a supplemental measure in evaluating the performance of our operating businesses and in comparing our results from period to period. We also believe that Adjusted EBITDA is useful to investors because it allows them to assess our results of operations and financial condition on the same basis that management uses internally. Our presentation of Adjusted EBITDA may not be comparable to similarly-titled measures used by other companies. Year Ended December 31, 2022 Americas International Corporate and Other (a) Total Revenues $ 9,474 $ 2,520 $ — $ 11,994 Vehicle depreciation and lease charges, net 414 414 — 828 Vehicle interest, net 348 54 — 402 Adjusted EBITDA 3,660 560 (87) 4,133 Non-vehicle depreciation and amortization 141 66 18 225 Assets exclusive of assets under vehicle programs 5,798 2,402 299 8,499 Assets under vehicle programs 14,269 3,159 — 17,428 Capital expenditures (excluding vehicles) 117 33 96 246 __________ (a) Primarily represents unallocated corporate expenses and receivables from our former subsidiaries . Year Ended December 31, 2021 Americas International Corporate and Other (a) Total Revenues $ 7,557 $ 1,756 $ — $ 9,313 Vehicle depreciation and lease charges, net 851 346 — 1,197 Vehicle interest, net 258 55 — 313 Adjusted EBITDA 2,364 118 (71) 2,411 Non-vehicle depreciation and amortization 178 84 10 272 Assets exclusive of assets under vehicle programs 5,746 2,716 119 8,581 Assets under vehicle programs 11,437 2,582 — 14,019 Capital expenditures (excluding vehicles) 74 26 8 108 __________ (a) Primarily represents unallocated corporate expenses and receivables from our former subsidiaries. Year Ended December 31, 2020 Americas International Corporate and Other (a) Total Revenues $ 3,965 $ 1,437 $ — $ 5,402 Vehicle depreciation and lease charges, net 968 400 — 1,368 Vehicle interest, net 274 44 — 318 Adjusted EBITDA 72 (202) (45) (175) Non-vehicle depreciation and amortization 185 91 10 286 Assets exclusive of assets under vehicle programs 5,510 2,754 101 8,365 Assets under vehicle programs 7,155 2,018 — 9,173 Capital expenditures (excluding vehicles) 65 29 — 94 __________ (a) Primarily represents unallocated corporate expenses and receivables from our former subsidiaries. Provided below is a reconciliation of Adjusted EBITDA to income (loss) before income taxes. For the Year Ended December 31, 2022 2021 2020 Adjusted EBITDA $ 4,133 $ 2,411 $ (175) Less: Non-vehicle related depreciation and amortization (a) 235 279 286 Interest expense related to corporate debt, net Interest expense 250 218 231 Early extinguishment of debt — 136 9 COVID-19 charges (b) (9) (2) 122 Restructuring and other related charges 19 64 118 Non-operational charges related to shareholder activist activity (c) — 3 8 Unprecedented personal-injury and other legal matters, net (d) 1 — 4 Transaction-related costs, net 8 5 3 Other (income) expense, net (7) — — Income (loss) before income taxes $ 3,636 $ 1,708 $ (956) __________ (a) Inc ludes amortization of intangible assets recognized in purchase accounting of $43 million in 2022, $66 million in 2021 and $66 million in 2020. Includes operating expenses in our Consolidated Statements of Operations related to cloud computing costs of $10 million and $7 million in 2022 and 2021, respectively. (b) The following table presents the unusual, direct and incremental costs due to the COVID-19 pandemic: 2022 2021 Minimum annual guaranteed rent in excess of concession fees, net $ (9) $ (2) Vehicles damaged in overflow parking lots, net of insurance proceeds — (7) Other charges — 7 Operating expenses $ (9) $ (3) Selling, general and administrative expenses — 1 COVID-19 charges, net $ (9) $ (2) (c) Reported within selling, general and administrative expenses in our Consolidated Statements of Operations . (d) Reported within operating expenses on our Consolidated Statements of Operations. The geographic segment information provided below is classified based on the geographic location of our subsidiaries. United States All Other Countries Total 2022 Revenues $ 8,975 $ 3,019 $ 11,994 Assets exclusive of assets under vehicle programs 5,622 2,877 8,499 Assets under vehicle programs 13,514 3,914 17,428 Net long-lived assets 1,386 944 2,330 2021 Revenues $ 7,254 $ 2,059 $ 9,313 Assets exclusive of assets under vehicle programs 5,575 3,006 8,581 Assets under vehicle programs 10,915 3,104 14,019 Net long-lived assets 1,328 1,041 2,369 2020 Revenues $ 3,758 $ 1,644 $ 5,402 Assets exclusive of assets under vehicle programs 5,262 3,103 8,365 Assets under vehicle programs 6,797 2,376 9,173 Net long-lived assets 1,421 1,147 2,568 |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event In January 2023, our Avis Budget Rental Car Funding (AESOP) LLC subsidiary issued $850 million of asset-backed notes to investors with a weighted average interest rate of 5.34%. In February 2023, our Board of Directors approved a $1 billion increase in repurchase authorization to our Stock Repurchase Program. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2022 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | Schedule II – Valuation and Qualifying Accounts (in millions) Description Balance at Beginning of Period Expense (Benefit) Other Adjustments (a) Deductions Balance at End of Period Allowance for Doubtful Accounts: Year Ended December 31, 2022 $ 84 $ 91 $ (3) $ (86) $ 86 2021 60 107 (2) (81) 84 2020 52 73 3 (68) 60 Tax Valuation Allowance: Year Ended December 31, 2022 $ 169 $ (63) $ (3) $ — $ 103 2021 207 (35) (3) — 169 2020 214 (1) (6) — 207 __________ (a) Primarily currency translation adjustments. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Avis Budget Group, Inc. provides mobility solutions to businesses and consumers worldwide. The accompanying Consolidated Financial Statements include the accounts and transactions of Avis Budget Group, Inc. and its subsidiaries, as well as entities in which Avis Budget Group, Inc. directly or indirectly has a controlling financial interest (collectively, “we”, “our”, “us”, or the “Company”). We operate 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 we do 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 we do not operate directly. We have completed the business acquisitions discussed in Note 6 – Acquisitions to these Consolidated Financial Statements. The operating results of the acquired businesses are included in the accompanying Consolidated Financial Statements from the dates of acquisition. We present separately the financial data of our vehicle programs. These programs are distinct from our 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 our vehicle programs. We believe it is appropriate to segregate the financial data of our vehicle programs because, ultimately, the source of repayment of such debt is the realization of such assets. |
Principles of Consolidation | Principles of ConsolidationThe Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of our and all entities in which we have a direct or indirect controlling financial interest and variable interest entities for which we have determined we are the primary beneficiary. We consolidate joint venture activities when we have a controlling interest and record non-controlling interests within stockholders’ equity and the statement of comprehensive income equal to the percentage of ownership interest retained in such entities by the respective non-controlling party. Intercompany transactions have been eliminated in consolidation. |
Use of Estimates and Assumptions | Use of Estimates and Assumptions The use of estimates and assumptions as determined by management is required in the preparation of the Consolidated Financial Statements in conformity with GAAP. These estimates are based on management’s evaluation of historical trends and other information available when the Consolidated Financial Statements are prepared and may affect the amounts reported and related disclosures. Actual results could differ from those estimates. |
Revenue Recognition and Deferred Revenue | Revenue Recognition We derive revenues primarily by providing vehicle rentals and other related products and mobility services to commercial and leisure customers, as well as through licensing of our rental brands. Other related products and mobility services include sales of collision and loss damage waivers under which a customer is relieved from financial responsibility arising from vehicle damage incurred during the rental; products and services for driving convenience such as fuel service options, roadside safety net, electronic toll collection, tablet rentals, access to satellite radio, portable navigation units and child safety seat rentals; and rentals of other supplemental items including automobile towing equipment and other moving accessories and supplies. We also receive payment from customers for certain operating expenses that we incur, including airport concession fees that are paid by us in exchange for the right to operate at airports and other locations, as well as vehicle licensing fees. In addition, we collect membership fees in connection with our car sharing business. We combine all lease and non-lease components of our vehicle rental contracts for which the timing and pattern of transfer are the same and the lease component meets the classification of an operating lease. Vehicle rentals and other related products and mobility services are recognized evenly over the period of rental, which is on average approximately five days. (See Note 3 – Leases). Licensing revenues principally consist of royalties paid by our licensees and are recorded as the licensees’ revenues are earned (over the rental period). We renew license agreements in the normal course of business and occasionally terminate, purchase or sell license agreements. In connection with ongoing fees that we receive from our licensees pursuant to license agreements, we are required to provide certain services, such as training, marketing and the operation of reservation systems. We exclude from the measurement of our transaction price any tax assessed by a governmental authority that is both imposed on and concurrent with a specific revenue-producing transaction and collected from a customer. As a result, revenue is recorded net of such taxes collected. Revenues and expenses associated with gasoline, airport concessions and vehicle licensing are recorded on a gross basis within revenues and operating expenses. Membership fees related to our car sharing business are generally nonrefundable, are deferred and recognized ratably over the period of membership. |
Currency Translation | Currency Translation Assets and liabilities of foreign operations are translated at the rate of exchange in effect on the balance sheet date; income and expenses are translated at the prevailing monthly average rate of exchange. The related translation adjustments are reflected in accumulated other comprehensive income (loss) in the stockholders’ equity section of the Consolidated Balance Sheets and in the Consolidated Statements of Comprehensive Income (See Note 16 – Stockholders' Equity). We have designated our euro-denominated Notes as a hedge of our investment in euro-denominated foreign operations and, accordingly, record the effective portion of gains or losses on this net investment hedge in accumulated other comprehensive income (loss) as part of currency translation adjustments. Currency Transactions Currency gains and losses resulting from foreign currency transactions are generally included in operating expenses within the Consolidated Statements of Operations; however, the net gain or loss of currency transactions on intercompany loans and the unrealized gain or loss on intercompany loan hedges are included within interest expense related to corporate debt, net. |
Cash and Cash Equivalents, Program Cash and Restricted Cash | Cash and Cash Equivalents, Program Cash and Restricted CashWe consider highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Program cash primarily represents amounts specifically designated to purchase assets under vehicle programs and/or to repay the related debt, as such we consider it a restricted cash equivalent. |
Property and Equipment | Property and Equipment Property and equipment (including leasehold improvements) are stated at cost, net of accumulated depreciation and amortization. Depreciation (non-vehicle related) is computed utilizing the straight-line method over the estimated useful lives of the related assets. Leasehold improvements are amortized over the shorter of the term of the lease or the estimated useful lives of the improvements. Useful lives are as follows: Buildings 30 years Furniture, fixtures & equipment 3 to 10 years Capitalized software 3 to 7 years Buses and support vehicles 4 to 15 years |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill represents the excess, if any, of the fair value of the consideration transferred by the acquirer and the fair value of any non-controlling interest remaining in the acquiree, if any, over the fair values of the identifiable net assets acquired. We do not amortize goodwill, but assess it for impairment at least annually and whenever events or changes in circumstances indicate that the carrying amounts of their respective reporting units exceed their fair values. We perform our annual impairment assessment in the fourth quarter of each year at the reporting unit level. We assess goodwill for such impairment by comparing the carrying value of each reporting unit to its fair value using the present value of expected future cash flows. When appropriate, comparative market multiples and other factors are used to corroborate the discounted cash flow results. Other intangible assets, primarily trademarks, with indefinite lives are not amortized but are evaluated annually for impairment and whenever events or changes in circumstances indicate that the carrying amount of this asset may exceed its fair value. If the carrying value of an other intangible asset exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. Other intangible assets with finite lives are amortized over their estimated useful lives and are evaluated each reporting period to determine if circumstances warrant a revision to these lives. |
Impairment of Long-Lived Assets | Impairment of Long-Lived AssetsWe are required to assess long-lived assets for impairment whenever circumstances indicate impairment may have occurred. This analysis is performed by comparing the respective carrying values of the assets to the undiscounted expected future cash flows to be generated from such assets. Property and equipment is evaluated separately at the lowest level of identifiable cash flows. If such analysis indicates that the carrying value of these assets is not recoverable, the carrying value of such assets is reduced to fair value. |
Vehicles | Vehicles Vehicles are stated at cost, net of accumulated depreciation. The initial cost of the vehicles is recorded net of incentives and allowances from manufacturers. We acquire a portion of our rental vehicles pursuant to repurchase and guaranteed depreciation programs established by automobile manufacturers. Under these programs, the manufacturers agree to repurchase vehicles at a specified price and date, or guarantee the depreciation rate for a specified period of time, subject to certain eligibility criteria (such as car condition and mileage requirements). We depreciate vehicles such that the net book value on the date of return to the manufacturers is intended to equal the contractual guaranteed residual values, thereby minimizing any gain or loss. Rental vehicles acquired outside of manufacturer repurchase and guaranteed depreciation programs are depreciated based upon their estimated residual values at their expected dates of disposition, after giving effect to anticipated conditions in the used car market. Any adjustments to depreciation are made prospectively. The estimation of residual values requires us to make assumptions regarding the age and mileage of the car at the time of disposal, as well as expected used vehicle auction market conditions. We regularly evaluate estimated residual values and adjust depreciation rates as appropriate. Differences between actual residual values and those estimated result in a gain or loss on disposal and are recorded as part of |
Advertising Expenses | Advertising ExpensesAdvertising and digital marketing costs are generally expensed in the period incurred and are recorded within selling, general and administrative expenses in our Consolidated Statements of Operations. |
Taxes | Taxes We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. As a result of the provisions of the Tax Cuts and Jobs Act, we account for Global Intangible Low-Taxed Income (“GILTI”) as a component of current period income tax expense in the year incurred. We record net deferred tax assets to the extent we believe that it is more likely than not that these assets will be realized. In making such determination, we consider all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies and recent results of operations. In the event we were to determine that we would be able to realize the deferred income tax assets in the future in excess of their net recorded amount, we would adjust the valuation allowance, which would reduce the provision for income taxes. |
Fair Value Measurements | Fair Value Measurements We measure the fair value of assets and liabilities and discloses the source for such fair value measurements. Financial assets and liabilities are classified as follows: Level 1, which refers to assets and liabilities valued using quoted prices from active markets for identical assets or liabilities; Level 2, which refers to assets and liabilities for which significant other observable market inputs are readily available; and Level 3, which are valued based on significant unobservable inputs. The fair value of our financial instruments is generally determined by reference to market values resulting from trading on a national securities exchange or in an over-the-counter market (Level 1 inputs). In some cases where quoted market prices are not available, prices are derived by considering the yield of the benchmark security that was issued to initially price the instruments and adjusting this rate by the credit spread that market participants would demand for the instruments as of the measurement date (Level 2 inputs). In situations where long-term borrowings are part of a conduit facility backed by short-term floating rate debt, we have determined that its carrying value approximates the fair value of this debt (Level 2 inputs). The carrying amounts of cash and cash equivalents, available-for-sale securities, accounts receivable, program cash and accounts payable and accrued liabilities approximate fair value due to the short-term maturities of these assets and liabilities. Our derivative assets and liabilities consist principally of currency exchange contracts, interest rate swaps, interest rate caps and commodity contracts, and are carried at fair value based on significant observable inputs (Level 2 inputs). Derivatives entered into by us are typically executed over-the-counter and are valued using internal valuation techniques, as no quoted market prices exist for such instruments. The valuation technique and inputs depend on the type of derivative and the nature of the underlying exposure. We principally use discounted cash flows to value these instruments. These models take into account a variety of factors including, where applicable, maturity, currency exchange rates, our interest rate yield curves and counterparties, credit curves, counterparty creditworthiness and commodity prices. These factors are applied on a consistent basis and are based upon observable inputs where available. |
Derivative Instruments | Derivative Instruments Derivative instruments are used as part of our overall strategy to manage exposure to market risks associated with fluctuations in currency exchange rates, interest rates and gasoline costs. As a matter of policy, derivatives are not used for trading or speculative purposes. |
Self-Insurance Reserves | Self-Insurance ReservesSuch liabilities relate primarily to public liability and third-party property damage claims, as well as claims arising from the sale of ancillary insurance products including, but not limited to, supplemental liability, personal effects protection and personal accident insurance. These obligations represent an estimate for both reported claims not yet paid and claims incurred but not yet reported. The estimated reserve requirements for such claims are recorded on an undiscounted basis utilizing actuarial methodologies and various assumptions which include, but are not limited to, our historical loss experience and projected loss development factors. The required liability is also subject to adjustment in the future based upon changes in claims experience, including changes in the number of incidents for which we are ultimately liable and changes in the cost per incident. These amounts are included within accounts payable and other current liabilities and other non-current liabilities.The liabilities represent an estimate for both reported claims not yet paid and claims incurred but not yet reported, utilizing actuarial methodologies similar to those described above. These amounts are included within accounts payable and other current liabilities and other non-current liabilities. |
Share-based Compensation | Stock-Based Compensation Stock-based compensation cost is measured at the grant date, based on the fair value of the award, and is recognized as expense on a straight-line basis over the vesting period. Our policy is to record compensation expense for stock options, and restricted stock units that are time- and performance-based, for the portion of the award that vests. Compensation expense related to market-based restricted stock units is recognized provided that the requisite service is rendered, regardless of when, if ever, the market condition is satisfied. We estimate the fair value of restricted stock units using the market price of our common stock on the date of grant. We estimate the fair value of stock-based and cash unit awards containing a market condition using a Monte Carlo simulation model. Key inputs and assumptions used in the Monte Carlo simulation model include the stock price of the award on the grant date, the expected term, the risk-free interest rate over the expected term, the expected annual dividend yield and the expected stock price volatility. The expected volatility is based on a combination of the historical and implied volatility of our publicly traded, near-the-money stock options, and the valuation period is based on the vesting period of the awards. The risk-free interest rate is derived from the U.S. Treasury yield curve in effect at the |
Business Combinations | Business Combinations We use the acquisition method of accounting for business combinations, which requires that the assets acquired and liabilities assumed be recorded at their respective fair values at the date of acquisition. Assets acquired and liabilities assumed in a business combination that arise from contingencies are recognized if fair value can be reasonably estimated at the acquisition date. The excess, if any, of (i) the fair value of the consideration transferred by the acquirer and the fair value of any non-controlling interest remaining in the acquiree, over (ii) the fair values of the identifiable net assets acquired is recorded as goodwill. Gains and losses on the re-acquisition of license agreements are recorded in the Consolidated Statements of Operations within transaction-related costs, net, upon completion of the respective acquisition. Costs incurred to effect a business combination are expensed as incurred, except for the cost to issue debt related to the acquisition. We record contingent consideration resulting from a business combination at its fair value on the acquisition date. The fair value of the contingent consideration is generally estimated by utilizing a Monte Carlo simulation technique, based on a range of possible future results (Level 3). Any changes in contingent consideration are recorded in transaction-related costs, net. |
Transaction-related Costs, net | Transaction-related Costs, net Transaction-related costs, net are classified separately in the Consolidated Statements of Operations. These costs are comprised of expenses primarily related to acquisition-related activities such as due-diligence and other advisory costs, expenses related to the integration of the acquiree’s operations with our comparable expenses, including the implementation of best practices and process improvements, non-cash gains and losses related to re-acquired rights, expenses related to pre-acquisition contingencies and contingent consideration related to acquisitions. |
Investments | InvestmentsWe account for investments for which we have the ability to exercise significant influence, but do not have a controlling interest, using the equity method of accounting and record our proportional share of net income or loss within operating expenses in the Consolidated Statements of Operations. We assess equity method investments for impairment whenever events or changes in circumstances indicate that the carrying amounts of such investments may not be recoverable. Any difference between the carrying value of the equity method investment and its estimated fair value is recognized as an impairment charge if the loss in value is deemed other than temporary |
Variable Interest Entity (“VIE”) | Variable Interest Entity (“VIE”) We review our investments to determine if they are VIEs. A VIE is an entity in which either (i) the equity investors as a group lack the power through voting or similar rights to direct the activities of such entity that most significantly impact such entity’s economic performance or (ii) the equity investment at risk is insufficient to finance that entity’s activities without additional subordinated financial support. Entities that are determined to be VIEs are consolidated if we are the primary beneficiary of the entity. The primary beneficiary possesses the power to direct the activities of the VIE that most significantly impact its economic performance and has the obligation to absorb losses or the right to receive benefits from the VIE that are significant to it. We will reconsider our original assessment of a VIE upon the occurrence of certain events such as contributions and redemptions, either by us, or third parties, or amendments to an entity’s governing documents. On an ongoing basis, we reconsider whether we are deemed to be a VIE’s primary beneficiary. See Note 17 – Related Party Transactions for our VIE investment in our former subsidiary. |
Nonmarketable Equity Securities | Nonmarketable Equity Securities We classify investments without readily determinable fair values that are not accounted for under the equity method as nonmarketable equity securities. The accounting guidance requires nonmarketable equity securities to be recorded at cost and adjusted to fair value at each reporting period. We apply the measurement alternative, which allows these investments to be recorded at cost, less impairment, if any, and subsequently adjust for observable price changes of identical or similar investments of the same issuer. Any changes in value are recorded within operating expenses. As of December 31, 2022 and 2021, our nonmarketable equity securities within non-current assets on our Consolidated Balance sheets were not material and no material adjustments were made to the carrying values of these securities during the years ended December 31, 2022, 2021 or 2020. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Accounting for Contract Assets and Contract Liabilities from Contracts with Customers In October 2021, the FASB issued ASU 2021-08, “Accounting for Contract Assets and Contract Liabilities from Contracts with Customers,” which amends Topic 805 to add contract assets and contract liabilities to the list of exceptions to the recognition and measurement principles that apply to business combinations and to require an acquirer to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606. ASU 2021-08 becomes effective for us on January 1, 2023. Early adoption is permitted on a retrospective or prospective basis. The adoption of this accounting pronouncement is not expected to have a material impact on our Consolidated Financial Statements. Reference Rate Reform In January 2021, the FASB issued ASU 2021-01, “Reference Rate Reform (Topic 848),” which amends ASU 2020-04 and clarifies the scope and guidance of Topic 848 to allow derivatives impacted by the reference rate reform to qualify for certain optional expedients and exceptions for contract modifications and hedge accounting. The guidance is optional and is effective for a limited period of time through December 31, 2022. As of December 31, 2022, this guidance had no impact on our Consolidated Financial Statements and we will continue to evaluate this guidance. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Disaggregation of Revenue | The following table presents our revenues disaggregated by geography: Year Ended December 31, 2022 2021 2020 Americas $ 9,474 $ 7,557 $ 3,965 Europe, Middle East and Africa 1,927 1,400 1,127 Asia and Australasia 593 356 310 Total revenues $ 11,994 $ 9,313 $ 5,402 The following table presents our revenues disaggregated by brand: Year Ended December 31, 2022 2021 2020 Avis $ 6,519 $ 4,894 $ 2,961 Budget 4,701 3,715 1,908 Other 774 704 533 Total revenues $ 11,994 $ 9,313 $ 5,402 ________ Other includes Zipcar and other operating brands. |
Schedule of Changes in Deferred Revenue | The following table presents changes in deferred revenue associated with our customer loyalty program: Year Ended December 31, 2022 2021 Balance, January 1 $ 50 $ 34 Revenue deferred 52 49 Revenue recognized (41) (33) Balance, December 31 $ 61 $ 50 _______ At December 31, 2022 and 2021, $15 million and $33 million was included in accounts payable and other current liabilities, respectively, and $46 million and $17 million in other non-current liabilities, respectively. Non-current amounts are expected to be recognized as revenue within two |
Schedule of Cash and Cash Equivalents | The following table provides a detail of cash and cash equivalents, program and restricted cash reported within the Consolidated Balance Sheets to the amounts shown in the Consolidated Statements of Cash Flows: As of December 31, 2022 2021 Cash and cash equivalents $ 570 $ 534 Program cash 70 89 Restricted cash (a) 2 3 Total cash and cash equivalents, program and restricted cash $ 642 $ 626 _________ (a) Included within other current assets. |
Schedule of Restrictions on Cash and Cash Equivalents | The following table provides a detail of cash and cash equivalents, program and restricted cash reported within the Consolidated Balance Sheets to the amounts shown in the Consolidated Statements of Cash Flows: As of December 31, 2022 2021 Cash and cash equivalents $ 570 $ 534 Program cash 70 89 Restricted cash (a) 2 3 Total cash and cash equivalents, program and restricted cash $ 642 $ 626 _________ (a) Included within other current assets. |
Schedule of Property and Equipment, Net | Useful lives are as follows: Buildings 30 years Furniture, fixtures & equipment 3 to 10 years Capitalized software 3 to 7 years Buses and support vehicles 4 to 15 years The components of vehicles, net within assets under vehicle programs are as follows: As of December 31, 2022 2021 Rental vehicles $ 17,819 $ 14,612 Less: Accumulated depreciation (2,211) (1,911) 15,608 12,701 Vehicles held for sale 317 165 Vehicles, net investment in lease (a) 36 — Vehicles, net $ 15,961 $ 12,866 _______ (a) See Note 17 – Related Party Transactions The components of vehicle depreciation and lease charges, net are summarized below: Year Ended December 31, 2022 2021 2020 Depreciation expense $ 1,709 $ 1,402 $ 1,330 Lease charges 138 156 195 (Gain) loss on sale of vehicles, net (1,019) (361) (157) Vehicle depreciation and lease charges, net $ 828 $ 1,197 $ 1,368 Property and equipment, net consisted of: As of December 31, 2022 2021 Land $ 59 $ 50 Buildings and leasehold improvements 507 525 Capitalized software 906 932 Furniture, fixtures and equipment 382 426 Projects in process 89 84 Buses and support vehicles 90 80 2,033 2,097 Less: Accumulated depreciation and amortization (1,439) (1,560) Property and equipment, net $ 594 $ 537 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Schedule of Operating Lease, Lease Income | The following table presents our lease revenues disaggregated by geography: Year Ended December 31, 2022 2021 2020 Americas $ 9,401 $ 7,501 $ 3,864 Europe, Middle East and Africa 1,852 1,343 1,080 Asia and Australasia 576 342 299 Total lease revenues $ 11,829 $ 9,186 $ 5,243 The following table presents our lease revenues disaggregated by brand: Year Ended December 31, 2022 2021 2020 Avis $ 6,420 $ 4,828 $ 2,851 Budget 4,650 3,674 1,878 Other 759 684 514 Total lease revenues $ 11,829 $ 9,186 $ 5,243 ________ Other includes Zipcar and other operating brands. |
Schedule of The Components of Lease Expense | The components of lease expense are as follows: Year Ended December 31, 2022 2021 2020 Property leases (a) Operating lease expense $ 703 $ 561 $ 575 Variable lease expense 520 433 152 Sublease income (5) (6) (6) Total property lease expense $ 1,218 $ 988 $ 721 Vehicle leases Finance lease expense: Amortization of ROU assets (b) $ 29 $ 37 $ 33 Interest on lease liabilities (c) 3 4 3 Operating lease expense (b) 138 156 195 Total vehicle lease expense $ 170 $ 197 $ 231 __________ (a) Primarily included in operating expenses and includes $(9) million, $(2) million and $60 million of minimum annual guaranteed rent in excess of concession fees as defined in our rental concession agreement for the years ended December 31, 2022, 2021 and 2020, respectively. (b) Included in vehicle depreciation and lease charges, net. (c) Included in vehicle interest, net. Supplemental cash flow information related to leases is as follows: Year Ended December 31, 2022 2021 2020 Cash payments for lease liabilities within operating activities: Property operating leases $ 743 $ 639 $ 740 Vehicle finance leases 3 4 3 Vehicle operating leases 137 162 196 Cash payments for lease liabilities within financing activities: Vehicle finance leases 181 193 294 Non-cash activities - increase in ROU assets in exchange for lease liabilities: Property operating leases 812 484 666 Vehicle finance leases 153 223 257 Vehicle operating leases 161 115 111 |
Schedule of Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to leases is as follows: As of December 31, 2022 2021 Property leases Operating lease ROU assets $ 2,405 $ 2,368 Short-term operating lease liabilities (a) $ 555 $ 496 Long-term operating lease liabilities 1,884 1,910 Operating lease liabilities $ 2,439 $ 2,406 Weighted average remaining lease term 8.2 years 8.8 years Weighted average discount rate 4.30 % 3.84 % Vehicle leases Finance Finance lease ROU assets, gross $ 267 $ 353 Accumulated amortization (45) (72) Finance lease ROU assets, net (b) $ 222 $ 281 Short-term vehicle finance lease liabilities $ 44 $ 126 Long-term vehicle finance lease liabilities 132 116 Vehicle finance lease liabilities (c) $ 176 $ 242 Weighted average remaining lease term 2.0 years 2.2 years Weighted average discount rate 1.82 % 1.97 % Operating Vehicle operating lease ROU assets (d) $ 86 $ 63 Short-term vehicle operating lease liabilities $ 64 $ 50 Long-term vehicle operating lease liabilities 22 14 Vehicle operating lease liabilities (e) $ 86 $ 64 Weighted average remaining lease term 1.4 years 1.3 years Weighted average discount rate 4.86 % 2.66 % _________ (a) Included in accounts payable and other current liabilities (b) Included in vehicles, net within Assets under vehicle programs (c) Included in debt within liabilities under vehicle programs (d) Included in receivables from vehicle manufacturers and other within assets under vehicle programs (e) Included in other within liabilities under vehicle programs |
Schedule of Maturities of Lease Liabilities | Maturities of lease liabilities as of December 31, 2022 are as follows: Property Operating Leases Vehicle Vehicle Operating Leases Within 1 year $ 646 $ 44 $ 64 Between 1 and 2 years 441 4 18 Between 2 and 3 years 345 128 6 Between 3 and 4 years 286 — 1 Between 4 and 5 years 234 — — Thereafter 967 — — Total lease payments 2,919 176 89 Less: Imputed interest (480) — (3) Total $ 2,439 $ 176 $ 86 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share (“EPS”) (shares in millions): Year Ended December 31, 2022 2021 2020 Net income (loss) attributable to Avis Budget Group, Inc. for basic and diluted EPS $ 2,764 $ 1,285 $ (684) Basic weighted average shares outstanding 47.3 64.9 70.5 Options and non-vested stock 1.1 1.2 — Diluted weighted average shares outstanding $ 48.4 $ 66.1 $ 70.5 Earnings (loss) per share: Basic $ 58.41 $ 19.79 $ (9.71) Diluted $ 57.16 $ 19.44 $ (9.71) |
Schedule of Outstanding Common Stock Equivalents That Were Anti-Dilutive | The following table summarizes our outstanding common stock equivalents that were anti-dilutive and therefore excluded from the computation of diluted EPS (shares in millions): As of December 31, 2022 2021 2020 Non-vested stock (a) 0.2 — 1.2 __________ (a) The weighted average grant date fair value for anti-dilutive non-vested stock for 2022 and 2020 was $177.70 and $26.20, respectively. |
Restructuring and Other Relat_2
Restructuring and Other Related Charges (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Changes to Restructuring-Related Liabilities | The following tables summarize the change to our restructuring-related liabilities and identifies the amounts recorded within our reporting segments for restructuring charges and corresponding payments and utilizations: Personnel Related Facility Related Other (a) Total Balance at January 1, 2020 $ 3 $ 1 $ 2 $ 6 Restructuring expense: 2020 Optimization 73 3 3 79 Brazil 1 1 (2) — T19 — — 14 14 Restructuring payment/utilization: 2020 Optimization (68) (2) (1) (71) Brazil — (1) 2 1 T19 (5) — (15) (20) Balance as of December 31, 2020 $ 4 $ 2 $ 3 $ 9 Restructuring expense: T21 26 4 2 32 T19 — — (2) (2) Restructuring payment/utilization: T21 (17) (4) (4) (25) 2020 Optimization (5) — — (5) T19 (1) — 2 1 Balance as of December 31, 2021 $ 7 $ 2 $ 1 $ 10 Restructuring expense: Cost Optimization 9 — — 9 T21 3 — — 3 Brazil — — 1 1 Restructuring payment/utilization: Cost Optimization (6) — (1) (7) T21 (8) (1) — (9) 2020 Optimization (1) — — (1) Brazil — — (1) (1) T19 — (1) — (1) Balance as of December 31, 2022 $ 4 $ — $ — $ 4 __________ (a) Includes expenses primarily related to the disposition of vehicles. Americas International Total Balance at January 1, 2020 $ 2 $ 4 $ 6 Restructuring expense: 2020 Optimization 31 48 79 T19 14 — 14 Restructuring payment/utilization: 2020 Optimization (29) (42) (71) Brazil 1 — 1 T19 (16) (4) (20) Balance as of December 31, 2020 3 6 9 Restructuring expense: T21 5 27 32 T19 (2) — (2) Restructuring payment/utilization: T21 (4) (21) (25) 2020 Optimization (2) (3) (5) T19 2 (1) 1 Balance as of December 31, 2021 2 8 10 Restructuring expense: Cost Optimization 2 7 9 T21 1 2 3 Brazil 1 — 1 Restructuring payment/utilization: Cost Optimization (2) (5) (7) T21 (2) (7) (9) 2020 Optimization — (1) (1) Brazil (1) — (1) T19 — (1) (1) Balance as of December 31, 2022 $ 1 $ 3 $ 4 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | Intangible assets consisted of: As of December 31, 2022 As of December 31, 2021 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortized Intangible Assets License agreements (a) $ 290 $ 217 $ 73 $ 298 $ 193 $ 105 Customer relationships (b) 247 207 40 257 204 53 Other (c) 48 39 9 51 36 15 $ 585 $ 463 $ 122 $ 606 $ 433 $ 173 Unamortized Intangible Assets Goodwill $ 1,070 $ 1,108 Trademarks $ 544 $ 551 _________ (a) Primarily amortized over a period ranging from 0 to 40 years with a weighted average life of 16 years. (b) Primarily amortized over a period ranging from 3 to 20 years with a weighted average life of 12 years. |
Schedule of Intangible Assets Amortization Expense | Amortization expense relating to all intangible assets was as follows: Year Ended December 31, 2022 2021 2020 License agreements $ 29 $ 47 $ 37 Customer relationships 10 14 23 Other 5 6 5 Total $ 44 $ 67 $ 65 |
Schedule of Goodwill | The carrying amounts of goodwill and related changes are as follows: Americas International Total Company Goodwill as of January 1, 2021 $ 2,140 $ 1,115 $ 3,255 Accumulated impairment losses as of January 1, 2021 (1,587) (531) (2,118) Goodwill as of January 1, 2021 553 584 1,137 Currency translation adjustments and other — (29) (29) Goodwill as of December 31, 2021 553 555 1,108 Currency translation adjustments and other (3) (35) (38) Goodwill as of December 31, 2022 $ 550 $ 520 $ 1,070 |
Vehicle Rental Activities (Tabl
Vehicle Rental Activities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment, Net | Useful lives are as follows: Buildings 30 years Furniture, fixtures & equipment 3 to 10 years Capitalized software 3 to 7 years Buses and support vehicles 4 to 15 years The components of vehicles, net within assets under vehicle programs are as follows: As of December 31, 2022 2021 Rental vehicles $ 17,819 $ 14,612 Less: Accumulated depreciation (2,211) (1,911) 15,608 12,701 Vehicles held for sale 317 165 Vehicles, net investment in lease (a) 36 — Vehicles, net $ 15,961 $ 12,866 _______ (a) See Note 17 – Related Party Transactions The components of vehicle depreciation and lease charges, net are summarized below: Year Ended December 31, 2022 2021 2020 Depreciation expense $ 1,709 $ 1,402 $ 1,330 Lease charges 138 156 195 (Gain) loss on sale of vehicles, net (1,019) (361) (157) Vehicle depreciation and lease charges, net $ 828 $ 1,197 $ 1,368 Property and equipment, net consisted of: As of December 31, 2022 2021 Land $ 59 $ 50 Buildings and leasehold improvements 507 525 Capitalized software 906 932 Furniture, fixtures and equipment 382 426 Projects in process 89 84 Buses and support vehicles 90 80 2,033 2,097 Less: Accumulated depreciation and amortization (1,439) (1,560) Property and equipment, net $ 594 $ 537 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Provision for (Benefit From) Income Taxes | The provision for (benefit from) income taxes consists of the following: Year Ended December 31, 2022 2021 2020 Current Federal $ — $ — $ (5) State 137 35 21 Foreign 61 12 29 Current income tax provision 198 47 45 Deferred Federal 622 309 (104) State (22) 78 (90) Foreign 82 (9) (123) Deferred income tax provision (benefit) 682 378 (317) Provision for (benefit from) income taxes $ 880 $ 425 $ (272) |
Schedule of Pretax Income (Loss) for Domestic and Foreign Operations | Income (loss) before income taxes is comprised of the following: Year Ended December 31, 2022 2021 2020 United States $ 3,114 $ 1,529 $ (590) Foreign 522 179 (366) Income (loss) before income taxes $ 3,636 $ 1,708 $ (956) |
Schedule of Deferred Income Tax Assets and Liabilities | Deferred income tax assets, net is comprised of the following: As of December 31, 2022 2021 Deferred income tax assets: Net tax loss carryforwards $ 1,109 $ 1,480 Long-term operating lease liabilities 666 625 Accrued liabilities and deferred revenue 231 272 Tax credits 38 11 Depreciation and amortization 25 19 Provision for doubtful accounts 19 18 Other 167 100 Valuation allowance (a) (101) (167) Deferred income tax assets 2,154 2,358 Deferred income tax liabilities: Operating lease right-of-use assets 657 614 Depreciation and amortization 90 102 Prepaid expenses 24 23 Other 4 4 Deferred income tax liabilities 775 743 Deferred income tax assets, net $ 1,379 $ 1,615 __________ (a) T he valuation allowance of $101 million at December 31, 2022 relates to tax loss carryforwards and certain deferred tax assets of $97 million and $4 million, respectively. The valuation allowance of $167 million at December 31, 2021 relates to tax loss carryforwards and certain deferred tax assets of $163 million and $4 million, respectively. The valuation allowances will be reduced when and if we determine it is more likely than not that the related deferred income tax assets will be realized. The decrease in valuation allowance as compared to the year ended December 31, 2021 is primarily related to a release of valuation allowance for certain state net operating losses. Deferred income tax assets and liabilities related to vehicle programs are comprised of the following: As of December 31, 2022 2021 Deferred income tax assets: Depreciation and amortization $ 63 $ 80 Other 22 19 Deferred income tax assets 85 99 Deferred income tax liabilities: Depreciation and amortization 2,815 2,321 Other 24 20 Deferred income tax liabilities 2,839 2,341 Deferred income tax liabilities under vehicle programs, net $ 2,754 $ 2,242 |
Schedule of Reconciliation of U.S Federal Income Tax Statutory Rate and Effective Income Tax Rate | The reconciliation between the U.S. federal income tax statutory rate and our effective income tax rate is as follows: Year Ended December 31, 2022 2021 2020 U.S. federal statutory rate 21.0 % 21.0 % 21.0 % Adjustments to reconcile to the effective rate: State and local income taxes, net of federal tax benefits 3.9 5.5 4.8 Changes in valuation allowances (1.3) (0.6) — Taxes on foreign operations at rates different than U.S. federal statutory rates 1.2 (2.0) 3.1 Stock-based compensation (0.5) (0.3) (0.1) Other non-deductible (non-taxable) items 0.4 0.6 (0.4) Other (0.5) 0.7 — 24.2 % 24.9 % 28.4 % |
Schedule of Changes in Gross Unrecognized Tax Benefits | The following is a tabular reconciliation of the gross amount of unrecognized tax benefits for the year: 2022 2021 2020 Balance, January 1 $ 58 $ 57 $ 54 Additions for tax positions related to current year 4 4 4 Additions for tax positions for prior years 3 3 — Reductions for tax positions for prior years (5) (3) (1) Settlements (5) — (3) Foreign currency translation (2) (3) 3 Balance, December 31 $ 53 $ 58 $ 57 |
Schedule of Unrecognized Tax Benefits | The following table presents unrecognized tax benefits: As of December 31, 2022 2021 Unrecognized tax benefit in non-current income taxes payable (a) $ 33 $ 30 Accrued interest payable on potential tax liabilities (b) 31 29 __________ (a) Pursuant to the agreements governing the disposition of certain subsidiaries in 2006, we are entitled to indemnification for certain predisposition tax contingencies. As of December 31, 2022 and 2021, $13 million, in each period, of unrecognized tax benefits are related to tax contingencies for which we believe we are entitled to indemnification. (b) We recognize potential interest related to unrecognized tax benefits within interest expense related to corporate debt, net on the accompanying Consolidated Statements of Operations. Penalties incurred during the years ended December 31, 2022, 2021 and 2020, were not significant and were recognized as a component of the provision for (benefit from) income taxes . |
Other Current Assets (Tables)
Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Assets, Current [Abstract] | |
Schedule of Other Current Assets | Other current assets consisted of: As of December 31, 2022 2021 Prepaid expenses $ 252 $ 205 Sales and use taxes 142 238 Other 112 95 Other current assets $ 506 $ 538 |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment, Net | Useful lives are as follows: Buildings 30 years Furniture, fixtures & equipment 3 to 10 years Capitalized software 3 to 7 years Buses and support vehicles 4 to 15 years The components of vehicles, net within assets under vehicle programs are as follows: As of December 31, 2022 2021 Rental vehicles $ 17,819 $ 14,612 Less: Accumulated depreciation (2,211) (1,911) 15,608 12,701 Vehicles held for sale 317 165 Vehicles, net investment in lease (a) 36 — Vehicles, net $ 15,961 $ 12,866 _______ (a) See Note 17 – Related Party Transactions The components of vehicle depreciation and lease charges, net are summarized below: Year Ended December 31, 2022 2021 2020 Depreciation expense $ 1,709 $ 1,402 $ 1,330 Lease charges 138 156 195 (Gain) loss on sale of vehicles, net (1,019) (361) (157) Vehicle depreciation and lease charges, net $ 828 $ 1,197 $ 1,368 Property and equipment, net consisted of: As of December 31, 2022 2021 Land $ 59 $ 50 Buildings and leasehold improvements 507 525 Capitalized software 906 932 Furniture, fixtures and equipment 382 426 Projects in process 89 84 Buses and support vehicles 90 80 2,033 2,097 Less: Accumulated depreciation and amortization (1,439) (1,560) Property and equipment, net $ 594 $ 537 |
Accounts Payable and Other Cu_2
Accounts Payable and Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounts Payable and Accrued Liabilities, Current [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | Accounts payable and other current liabilities consisted of: As of December 31, 2022 2021 Short-term operating lease liabilities $ 555 $ 496 Accounts payable 466 407 Accrued advertising and marketing 268 218 Accrued sales and use taxes 246 313 Accrued payroll and related 205 193 Deferred lease revenues – current 188 185 Public liability and property damage insurance liabilities – current 174 159 Other 445 418 Accounts payable and other current liabilities $ 2,547 $ 2,389 |
Long-term Corporate Debt and _2
Long-term Corporate Debt and Borrowing Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Long-term debt and other borrowing arrangements consisted of: Maturity As of December 31, 2022 2021 4.125% euro-denominated Senior Notes November 2024 $ 321 $ 341 4.500% euro-denominated Senior Notes May 2025 268 284 4.750% euro-denominated Senior Notes January 2026 375 398 5.750% Senior Notes July 2027 732 728 4.750% Senior Notes April 2028 500 500 5.375% Senior Notes March 2029 600 600 Floating Rate Term Loan (a) August 2027 1,176 1,187 Floating Rate Term Loan (a) March 2029 725 — Other (b) 18 19 Deferred financing fees (44) (48) Total 4,671 4,009 Less: Short-term debt and current portion of long-term debt 27 19 Long-term debt $ 4,644 $ 3,990 _________ (a) The floating rate term loan is part of our senior revolving credit facility, which is secured by pledges of capital stock of certain our subsidiaries, and liens on substantially all of our intellectual property and certain other real and personal property. (b) Primarily includes finance leases which are secured by liens on the related assets. |
Schedule of Maturities of Long-term Debt | The following table provides contractual maturities of our corporate debt at December 31, 2022: Year Amount 2023 $ 27 2024 346 2025 291 2026 396 2027 1,867 Thereafter 1,788 $ 4,715 The following table provides the contractual maturities of our debt under vehicle programs, including related party debt due to Avis Budget Rental Car Funding, at December 31, 2022: Debt under Vehicle Programs (a) 2023 (b) $ 2,235 2024 (c) 5,485 2025 2,351 2026 2,124 2027 1,238 Thereafter 428 $ 13,861 __________ (a) Vehicle-backed debt primarily represents asset-backed securities. (b) Includes $0.4 billion of bank and bank-sponsored facilities. (c) Includes $2.4 billion of bank and bank-sponsored facilities. |
Schedule of Line of Credit Facilities | At December 31, 2022, the committed corporate credit facilities available to us and/or our subsidiaries were as follows: Total Capacity Outstanding Borrowings Letters of Credit Issued Available Capacity Senior revolving credit facility maturing 2026 (a) $ 2,000 $ — $ 966 $ 1,034 __________ (a) The senior revolving credit facility bears interest at one-month LIBOR plus 175 basis points and is part of our 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 of our subsidiaries, and liens on substantially all of our intellectual property and certain other real and personal property. The following table presents available funding under our debt arrangements related to our vehicle programs, including related party debt due to Avis Budget Rental Car Funding, at December 31, 2022: Total Capacity (a) Outstanding Borrowings (b) Available Capacity Americas – Debt due to Avis Budget Rental Car Funding $ 11,921 $ 11,322 $ 599 Americas – Debt borrowings 970 598 372 International – Debt borrowings 2,628 1,700 928 International – Finance leases 208 176 32 Other 65 65 — Total $ 15,792 $ 13,861 $ 1,931 __________ (a) Capacity is subject to maintaining sufficient assets to collateralize debt. (b) The outstanding debt is collateralized by vehicles and related assets of $13.0 billion for Americas - Debt due to Avis Budget Rental Car Funding; $1.0 billion for Americas - Debt borrowings; $2.6 billion for International - Debt borrowings; and $0.2 billion for International - Finance leases. |
Debt under Vehicle Programs a_2
Debt under Vehicle Programs and Borrowing Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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 December 31, 2022 2021 Americas – Debt due to Avis Budget Rental Car Funding (a) $ 11,322 $ 8,889 Americas – Debt borrowings 598 612 International – Debt borrowings 1,700 1,757 International – Finance leases 176 177 Other 65 3 Deferred financing fees (b) (52) (48) Total $ 13,809 $ 11,390 __________ (a) Increase reflects additional borrowings principally to fund increases in our rental fleet. (b) Deferred financing fees related to Debt due to Avis Budget Rental Car Funding as of December 31, 2022 and 2021 were $47 million and $41 million, respectively. |
Schedule of Maturities of Long-term Debt | The following table provides contractual maturities of our corporate debt at December 31, 2022: Year Amount 2023 $ 27 2024 346 2025 291 2026 396 2027 1,867 Thereafter 1,788 $ 4,715 The following table provides the contractual maturities of our debt under vehicle programs, including related party debt due to Avis Budget Rental Car Funding, at December 31, 2022: Debt under Vehicle Programs (a) 2023 (b) $ 2,235 2024 (c) 5,485 2025 2,351 2026 2,124 2027 1,238 Thereafter 428 $ 13,861 __________ (a) Vehicle-backed debt primarily represents asset-backed securities. (b) Includes $0.4 billion of bank and bank-sponsored facilities. (c) Includes $2.4 billion of bank and bank-sponsored facilities. |
Schedule of Line of Credit Facilities | At December 31, 2022, the committed corporate credit facilities available to us and/or our subsidiaries were as follows: Total Capacity Outstanding Borrowings Letters of Credit Issued Available Capacity Senior revolving credit facility maturing 2026 (a) $ 2,000 $ — $ 966 $ 1,034 __________ (a) The senior revolving credit facility bears interest at one-month LIBOR plus 175 basis points and is part of our 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 of our subsidiaries, and liens on substantially all of our intellectual property and certain other real and personal property. The following table presents available funding under our debt arrangements related to our vehicle programs, including related party debt due to Avis Budget Rental Car Funding, at December 31, 2022: Total Capacity (a) Outstanding Borrowings (b) Available Capacity Americas – Debt due to Avis Budget Rental Car Funding $ 11,921 $ 11,322 $ 599 Americas – Debt borrowings 970 598 372 International – Debt borrowings 2,628 1,700 928 International – Finance leases 208 176 32 Other 65 65 — Total $ 15,792 $ 13,861 $ 1,931 __________ (a) Capacity is subject to maintaining sufficient assets to collateralize debt. (b) The outstanding debt is collateralized by vehicles and related assets of $13.0 billion for Americas - Debt due to Avis Budget Rental Car Funding; $1.0 billion for Americas - Debt borrowings; $2.6 billion for International - Debt borrowings; and $0.2 billion for International - Finance leases. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income | The components of accumulated other comprehensive income (loss) are as follows: Currency Translation Adjustments (a) Net Unrealized Gains (Losses) on Cash Flow Hedges (b) Minimum Pension Liability Adjustment (c) Accumulated Other Comprehensive Income (Loss) Balance, January 1, 2020 $ 9 $ (20) $ (146) $ (157) Other comprehensive income (loss) before reclassifications 33 (39) (36) (42) Amounts reclassified from accumulated other comprehensive income (loss) (2) 8 6 12 Net current-period other comprehensive income (loss) 31 (31) (30) (30) Balance, December 31, 2020 40 (51) (176) (187) Other comprehensive income (loss) before reclassifications (35) 18 39 22 Amounts reclassified from accumulated other comprehensive income (loss) 11 14 7 32 Net current-period other comprehensive income (loss) (24) 32 46 54 Balance, December 31, 2021 16 (19) (130) (133) Other comprehensive income (loss) before reclassifications (46) 57 11 22 Amounts reclassified from accumulated other comprehensive income (loss) — 7 3 10 Net current-period other comprehensive income (loss) (46) 64 14 32 Balance, December 31, 2022 $ (30) $ 45 $ (116) $ (101) __________ All components of accumulated other comprehensive income (loss) are net of tax, except currency translation adjustments, which exclude income taxes related to indefinite investments in foreign subsidiaries (see Note 9 – Income Taxes for impacts of the Tax Act) and include a $114 million gain, net of tax, related to our hedge of our investment in euro-denominated foreign operations (See Note 20 – Financial Instruments). (a) For the years ended December 31, 2021 and 2020, the amounts were reclassified from accumulated other comprehensive income (loss) into restructuring and other related charges. (b) For the years ended December 31, 2022, 2021 and 2020, the amounts reclassified from accumulated other comprehensive income (loss) into corporate interest expense were $9 million ($7 million, net of tax), $17 million ($12 million, net of tax) and $9 million ($6 million, net of tax), respectively. For the years ended December 31, 2021 and 2020, the amounts reclassified from accumulated other comprehensive income (loss) into vehicle interest expense were $2 million ($2 million, net of tax). (c) For the years ended December 31, 2022, 2021 and 2020, amounts reclassified from accumulated other comprehensive income (loss) into selling, general and administrative expenses were $5 million ($3 million, net of tax), $9 million ($7 million, net of tax) and $9 million ($6 million, net of tax), respectively. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Weighted Average Assumptions Used | During the years ended December 31, 2022 and 2021, we did not issue any stock unit awards containing a market condition. Expected volatility of stock price 91% Risk-free interest rate 0.18% Valuation period 3 years Dividend yield —% |
Schedule of Stock Based Compensation Activity | Annual activity related to stock units consisted of (in thousands of shares): Number of Shares Weighted Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value (in millions) Time-based RSUs Outstanding at January 1, 2022 671 $ 39.39 Granted (a) 180 172.34 Vested (b) (360) 37.35 Forfeited (40) 61.80 Outstanding and expected to vest at December 31, 2022 (c) 451 $ 92.06 1.1 $ 74 Performance-based and market-based RSUs Outstanding at January 1, 2022 886 $ 35.40 Granted (a) 99 193.48 Vested (b) (254) 34.24 Forfeited (40) 49.75 Outstanding at December 31, 2022 691 $ 57.56 0.9 $ 113 Outstanding and expected to vest at December 31, 2022 (c) 683 $ 55.99 0.9 $ 112 __________ (a) Reflects the maximum number of stock units assuming achievement of all performance-, market- and time-vesting criteria and does not include those for non-employee directors, which are discussed separately below. The weighted-average fair value of time-based RSUs, and performance-based and market-based RSUs granted in 2021 was $65.23 and $62.27, respectively, and the weighted-average fair value of time-based RSUs and performance-based RSUs granted in 2020 was $23.14 and $21.06, respectively. (b) The total fair value of RSUs vested during 2022, 2021 and 2020 was $22 million, $17 million and $19 million, respectively. (c) Aggregate unrecognized compensation expense related to time-based RSUs and performance-based and market-based RSUs amounted to $49 million and will be recognized over a weighted average vesting period of 1.0 year. |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Schedule of Net Periodic Benefit Cost | The components of net periodic (benefit) cost consisted of the following: Year Ended December 31, 2022 2021 2020 Service cost (a) $ 5 $ 6 $ 5 Interest cost (b) 16 12 17 Expected return on plan assets (b) (37) (35) (31) Amortization of unrecognized amounts (b) 5 9 9 Net periodic (benefit) cost $ (11) $ (8) $ — __________ (a) For the years ended December 31, 2022, 2021, and 2020, $4 million was included in operating expenses, in each period, and $1 million, $2 million and $1 million was included in selling, general and administrative expenses, respectively. (b) Included in selling, general and administrative expenses. |
Schedule of Funded Status of Pension Plans | We use a measurement date of December 31 for our pension plans. The funded status of the pension plans were as follows: As of December 31, Change in Benefit Obligation 2022 2021 Benefit obligation at end of prior year $ 881 $ 926 Service cost 5 6 Interest cost 16 12 Actuarial (gain) loss (247) (17) Plan amendments (1) (3) Currency translation adjustment (51) (12) Net benefits paid (28) (31) Benefit obligation at end of current year $ 575 $ 881 Change in Plan Assets Fair value of assets at end of prior year $ 772 $ 722 Actual return on plan assets (196) 71 Employer contributions 12 16 Currency translation adjustment (46) (5) Net benefits paid (28) (32) Fair value of assets at end of current year $ 514 $ 772 |
Schedule of Net Funded Status | As of December 31, Funded Status 2022 2021 Classification of net balance sheet assets (liabilities): Non-current assets $ 36 $ 50 Current liabilities (4) (5) Non-current liabilities (93) (154) Net funded status $ (61) $ (109) |
Schedule of Assumptions Used to Determine Pension Obligations and Pension Costs | The following assumptions were used to determine pension obligations and pension costs for the principal plans in which our employees participated: For the Year Ended December 31, U.S. Pension Benefit Plans 2022 2021 2020 Discount rate: Net periodic benefit cost 2.67 % 2.25 % 3.10 % Benefit obligation 5.18 % 2.67 % 2.25 % Long-term rate of return on plan assets 6.25 % 6.75 % 7.00 % Non-U.S. Pension Benefit Plans Discount rate: Net periodic benefit cost 1.83 % 1.40 % 1.95 % Benefit obligation 4.79 % 1.83 % 1.40 % Long-term rate of return on plan assets 4.39 % 3.71 % 3.80 % |
Schedule of Defined Benefit Pension Plans' Assets Fair Value | The following table presents the defined benefit pension plans’ assets measured at fair v alue: As of December 31, 2022 Asset Class Level 1 Level 2 Level 3 Total Cash equivalents and short-term investments $ 18 $ 6 $ — $ 24 U.S. equities 69 19 — 88 Non-U.S. equities 39 30 — 69 Government bonds — 2 — 2 Corporate bonds 126 48 — 174 Other assets 2 101 54 157 Total assets $ 254 $ 206 $ 54 $ 514 __________ For the year ended December 31, 2022, we purchased and classified $54 million of investments as Level 3. As of December 31, 2021 Asset Class Level 1 Level 2 Level 3 Total Cash equivalents and short-term investments $ 14 $ 48 $ — $ 62 U.S. equities 115 45 — 160 Non-U.S. equities 56 89 — 145 Government bonds 6 11 — 17 Corporate bonds 134 51 — 185 Other assets 5 152 46 203 Total assets $ 330 $ 396 $ 46 $ 772 __________ For the year ended December 31, 2021, we purchased and classified $46 million of investments as Level 3. |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Amounts of Outstanding Derivative Positions | We held derivative instruments with absolute notional values as follows: As of December 31, 2022 2021 Foreign exchange contracts $ 1,160 $ 1,655 Interest rate caps (a) 14,219 11,900 Interest rate swaps 1,450 1,450 __________ (a) Represents $9.8 billion of interest rate caps sold, partially offset by approximately $4.4 billion of interest rate caps purchased at December 31, 2022 and $7.2 billion of interest rate caps sold, partially offset by approximately $4.7 billion of interest rate caps purchased at December 31, 2021. These amounts exclude $6.2 billion and $3.0 billion of interest rate caps purchased by our Avis Budget Rental Car Funding subsidiary at December 31, 2022 and 2021, respectively. |
Schedule of Fair Value of Derivative Instruments | Fair values (Level 2) of derivative instruments are as follows: As of December 31, 2022 As of December 31, 2021 Fair Value, Asset Fair Value, Liability Fair Value, Asset Fair Value, Liability Derivatives designated as hedging instruments Interest rate swaps (a) $ 61 $ — $ 2 $ 27 Derivatives not designated as hedging instruments Foreign exchange contracts (b) 4 6 7 10 Interest rate caps (c) 46 111 11 15 Total $ 111 $ 117 $ 20 $ 52 __________ Amounts in this table exclude derivatives issued by Avis Budget Rental Car Funding, as it is not consolidated by us; 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 16 – 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. |
Schedule of Effect of Derivatives Recognized | The effects of derivatives recognized in our Consolidated Financial Statements are as follows: Year Ended December 31, 2022 2021 2020 Financial instruments designated as hedging instruments (a) Interest rate swaps (b) $ 64 $ 32 $ (31) Euro-denominated notes (c) 44 56 (67) Financial instruments not designated as hedging instruments (d) Foreign exchange contracts (e) 36 (3) (5) Interest rate caps (f) (1) (1) — Commodity contracts (g) — — (6) Total $ 143 $ 84 $ (109) __________ (a) Recognized, net of tax, as a component of accumulated 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 16 – Stockholders' Equity for amounts reclassified from accumulated other comprehensive income (loss) 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 year ended December 31, 2022, included a $39 million gain in interest expense and a $3 million loss in operating expenses. For the year ended December 31, 2021, included a $2 million loss in interest expense and a $1 million loss in operating expenses. For the year ended December 31, 2020, included a $3 million loss in interest expense and a $2 million loss in operating expenses. (f) Primarily included in vehicle interest, net. (g) Included in operating expenses. |
Schedule of Carrying Amounts and Estimated Fair Values | The carrying amounts and estimated fair values (Level 2) of debt instruments are as follows: As of December 31, 2022 As of December 31, 2021 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Corporate debt Short-term debt and current portion of long-term debt $ 27 $ 26 $ 19 $ 18 Long-term debt 4,644 4,411 3,990 4,153 Debt under vehicle programs Vehicle-backed debt due to Avis Budget Rental Car Funding $ 11,275 $ 10,848 $ 8,848 $ 9,009 Vehicle-backed debt 2,423 2,422 2,528 2,559 Interest rate swaps and interest rate caps (a) 111 111 14 14 ___________ (a) Derivatives in liability position. |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Operating Segments | Year Ended December 31, 2022 Americas International Corporate and Other (a) Total Revenues $ 9,474 $ 2,520 $ — $ 11,994 Vehicle depreciation and lease charges, net 414 414 — 828 Vehicle interest, net 348 54 — 402 Adjusted EBITDA 3,660 560 (87) 4,133 Non-vehicle depreciation and amortization 141 66 18 225 Assets exclusive of assets under vehicle programs 5,798 2,402 299 8,499 Assets under vehicle programs 14,269 3,159 — 17,428 Capital expenditures (excluding vehicles) 117 33 96 246 __________ (a) Primarily represents unallocated corporate expenses and receivables from our former subsidiaries . Year Ended December 31, 2021 Americas International Corporate and Other (a) Total Revenues $ 7,557 $ 1,756 $ — $ 9,313 Vehicle depreciation and lease charges, net 851 346 — 1,197 Vehicle interest, net 258 55 — 313 Adjusted EBITDA 2,364 118 (71) 2,411 Non-vehicle depreciation and amortization 178 84 10 272 Assets exclusive of assets under vehicle programs 5,746 2,716 119 8,581 Assets under vehicle programs 11,437 2,582 — 14,019 Capital expenditures (excluding vehicles) 74 26 8 108 __________ (a) Primarily represents unallocated corporate expenses and receivables from our former subsidiaries. Year Ended December 31, 2020 Americas International Corporate and Other (a) Total Revenues $ 3,965 $ 1,437 $ — $ 5,402 Vehicle depreciation and lease charges, net 968 400 — 1,368 Vehicle interest, net 274 44 — 318 Adjusted EBITDA 72 (202) (45) (175) Non-vehicle depreciation and amortization 185 91 10 286 Assets exclusive of assets under vehicle programs 5,510 2,754 101 8,365 Assets under vehicle programs 7,155 2,018 — 9,173 Capital expenditures (excluding vehicles) 65 29 — 94 __________ (a) Primarily represents unallocated corporate expenses and receivables from our former subsidiaries. |
Schedule of Reconciliation of Adjusted EBITDA to Income (Loss) | Provided below is a reconciliation of Adjusted EBITDA to income (loss) before income taxes. For the Year Ended December 31, 2022 2021 2020 Adjusted EBITDA $ 4,133 $ 2,411 $ (175) Less: Non-vehicle related depreciation and amortization (a) 235 279 286 Interest expense related to corporate debt, net Interest expense 250 218 231 Early extinguishment of debt — 136 9 COVID-19 charges (b) (9) (2) 122 Restructuring and other related charges 19 64 118 Non-operational charges related to shareholder activist activity (c) — 3 8 Unprecedented personal-injury and other legal matters, net (d) 1 — 4 Transaction-related costs, net 8 5 3 Other (income) expense, net (7) — — Income (loss) before income taxes $ 3,636 $ 1,708 $ (956) __________ (a) Inc ludes amortization of intangible assets recognized in purchase accounting of $43 million in 2022, $66 million in 2021 and $66 million in 2020. Includes operating expenses in our Consolidated Statements of Operations related to cloud computing costs of $10 million and $7 million in 2022 and 2021, respectively. (b) The following table presents the unusual, direct and incremental costs due to the COVID-19 pandemic: 2022 2021 Minimum annual guaranteed rent in excess of concession fees, net $ (9) $ (2) Vehicles damaged in overflow parking lots, net of insurance proceeds — (7) Other charges — 7 Operating expenses $ (9) $ (3) Selling, general and administrative expenses — 1 COVID-19 charges, net $ (9) $ (2) (c) Reported within selling, general and administrative expenses in our Consolidated Statements of Operations . (d) Reported within operating expenses on our Consolidated Statements of Operations. |
Schedule of Geographic Segment Information | The geographic segment information provided below is classified based on the geographic location of our subsidiaries. United States All Other Countries Total 2022 Revenues $ 8,975 $ 3,019 $ 11,994 Assets exclusive of assets under vehicle programs 5,622 2,877 8,499 Assets under vehicle programs 13,514 3,914 17,428 Net long-lived assets 1,386 944 2,330 2021 Revenues $ 7,254 $ 2,059 $ 9,313 Assets exclusive of assets under vehicle programs 5,575 3,006 8,581 Assets under vehicle programs 10,915 3,104 14,019 Net long-lived assets 1,328 1,041 2,369 2020 Revenues $ 3,758 $ 1,644 $ 5,402 Assets exclusive of assets under vehicle programs 5,262 3,103 8,365 Assets under vehicle programs 6,797 2,376 9,173 Net long-lived assets 1,421 1,147 2,568 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||||
Mar. 31, 2022 | May 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Feb. 28, 2022 | |
Summary Of Significant Accounting Policies [Line Items] | ||||||
Net carrying value of software developed | $ 174 | $ 188 | ||||
Vehicle interest income | 1 | 1 | $ 12 | |||
Advertising expense | 64 | 81 | 54 | |||
Digital marketing cost | 71 | 44 | 37 | |||
Retained risks of liability to third parties | 391 | 383 | ||||
Workers compensation liabilities | 53 | 48 | ||||
Investments in joint ventures | 77 | 72 | ||||
Sale of equity investments | 12 | 10 | 5 | |||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Assets held for sale | $ 13 | |||||
Gain on write down of assets held for sale | 2 | |||||
Amount of consideration received | $ 15 | |||||
Loss on sale | 7 | |||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Assets In Argentina | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Amount of consideration received | $ 4 | |||||
Loss on sale | 14 | |||||
Consideration, rights to operate period | 2 years | |||||
Severance costs | 2 | |||||
Royalty | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Revenue | $ 165 | $ 127 | $ 159 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 11,994 | $ 9,313 | $ 5,402 |
Avis | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 6,519 | 4,894 | 2,961 |
Budget | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 4,701 | 3,715 | 1,908 |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 774 | 704 | 533 |
Americas | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 9,474 | 7,557 | 3,965 |
Europe, Middle East and Africa | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1,927 | 1,400 | 1,127 |
Asia and Australasia | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 593 | $ 356 | $ 310 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Deferred Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Contract With Customer, Liability [Roll Forward] | ||
Deferred lease revenues – current | $ 188 | $ 185 |
Customer Loyalty | ||
Disaggregation of Revenue [Line Items] | ||
Term | 12 months | |
Contract With Customer, Liability [Roll Forward] | ||
Beginning balance | $ 50 | 34 |
Revenue deferred | 52 | 49 |
Revenue recognized | (41) | (33) |
Ending balance | 61 | 50 |
Deferred lease revenues – current | 15 | 33 |
Contract with customer, liability, noncurrent | $ 46 | $ 17 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | Minimum | ||
Contract With Customer, Liability [Roll Forward] | ||
Revenue recognition period | 2 years | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | Maximum | ||
Contract With Customer, Liability [Roll Forward] | ||
Revenue recognition period | 3 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Cash and Cash Equivalents, Program and Restricted Cash (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 570 | $ 534 | ||
Program cash | 70 | 89 | ||
Restricted cash | 2 | 3 | ||
Total cash and cash equivalents, program and restricted cash | $ 642 | $ 626 | $ 765 | $ 900 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Schedule of Estimated Useful Lives (Detail) | 12 Months Ended |
Dec. 31, 2022 | |
Buildings | |
Property And Equipment, Net [Line Items] | |
Property, plant and equipment, useful life | 30 years |
Furniture, fixtures & equipment | Minimum | |
Property And Equipment, Net [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Furniture, fixtures & equipment | Maximum | |
Property And Equipment, Net [Line Items] | |
Property, plant and equipment, useful life | 10 years |
Capitalized software | Minimum | |
Property And Equipment, Net [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Capitalized software | Maximum | |
Property And Equipment, Net [Line Items] | |
Property, plant and equipment, useful life | 7 years |
Buses and support vehicles | Minimum | |
Property And Equipment, Net [Line Items] | |
Property, plant and equipment, useful life | 4 years |
Buses and support vehicles | Maximum | |
Property And Equipment, Net [Line Items] | |
Property, plant and equipment, useful life | 15 years |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Stock-Based Compensation (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Dividend yield | 0% |
Leases - Lessor (Details)
Leases - Lessor (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Total lease revenues | $ 11,829 | $ 9,186 | $ 5,243 |
Operating Lease, Lease Income, Statement of Income or Comprehensive Income [Extensible Enumeration] | Revenues | Revenues | Revenues |
Avis | |||
Disaggregation of Revenue [Line Items] | |||
Total lease revenues | $ 6,420 | $ 4,828 | $ 2,851 |
Budget | |||
Disaggregation of Revenue [Line Items] | |||
Total lease revenues | 4,650 | 3,674 | 1,878 |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Total lease revenues | 759 | 684 | 514 |
Americas | |||
Disaggregation of Revenue [Line Items] | |||
Total lease revenues | 9,401 | 7,501 | 3,864 |
Europe, Middle East and Africa | |||
Disaggregation of Revenue [Line Items] | |||
Total lease revenues | 1,852 | 1,343 | 1,080 |
Asia and Australasia | |||
Disaggregation of Revenue [Line Items] | |||
Total lease revenues | $ 576 | $ 342 | $ 299 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
Residual value of leased asset (up to) | $ 65 | $ 102 |
Leases - Lessee Components of L
Leases - Lessee Components of Lease Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Finance lease expense: | |||
Operating lease expense | $ 138 | $ 156 | $ 195 |
Minimum annual guaranteed rent in excess of concession fees, net | (9) | (2) | 60 |
Property | |||
Property leases | |||
Operating lease expense | 703 | 561 | 575 |
Variable lease expense | 520 | 433 | 152 |
Sublease income | (5) | (6) | (6) |
Total property lease expense | 1,218 | 988 | 721 |
Finance lease expense: | |||
Total vehicle lease expense | 1,218 | 988 | 721 |
Buses and support vehicles | |||
Property leases | |||
Total property lease expense | 170 | 197 | 231 |
Finance lease expense: | |||
Amortization of ROU assets | 29 | 37 | 33 |
Interest on lease liabilities | 3 | 4 | 3 |
Total vehicle lease expense | $ 170 | $ 197 | $ 231 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Supplemental Balance Sheet Information Related to Leases [Line Items] | ||
Operating lease ROU assets | $ 2,405 | $ 2,368 |
Short-term operating lease liabilities | 555 | 496 |
Long-term operating lease liabilities | $ 1,884 | $ 1,910 |
Weighted average discount rate | 1.82% | 1.25% |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accounts Payable and Accrued Liabilities, Current | Accounts Payable and Accrued Liabilities, Current |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Vehicles, net | Vehicles, net |
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Total | Total |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Operating lease ROU assets | Operating lease ROU assets |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Operating lease ROU assets | Operating lease ROU assets |
Property | ||
Supplemental Balance Sheet Information Related to Leases [Line Items] | ||
Operating lease ROU assets | $ 2,405 | $ 2,368 |
Short-term operating lease liabilities | 555 | 496 |
Long-term operating lease liabilities | 1,884 | 1,910 |
Operating lease liabilities | $ 2,439 | $ 2,406 |
Weighted average remaining lease term | 8 years 2 months 12 days | 8 years 9 months 18 days |
Weighted average discount rate | 4.30% | 3.84% |
Buses and support vehicles | ||
Supplemental Balance Sheet Information Related to Leases [Line Items] | ||
Operating lease ROU assets | $ 86 | $ 63 |
Short-term operating lease liabilities | 64 | 50 |
Long-term operating lease liabilities | 22 | 14 |
Operating lease liabilities | $ 86 | $ 64 |
Weighted average remaining lease term | 1 year 4 months 24 days | 1 year 3 months 18 days |
Weighted average discount rate | 4.86% | 2.66% |
Finance lease ROU assets, gross | $ 267 | $ 353 |
Accumulated amortization | (45) | (72) |
Finance Lease ROU assets, net | 222 | 281 |
Short-term vehicle finance lease liabilities | 44 | 126 |
Long-term vehicle finance lease liabilities | 132 | 116 |
Total | $ 176 | $ 242 |
Weighted average remaining lease term | 2 years | 2 years 2 months 12 days |
Weighted average discount rate | 1.82% | 1.97% |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property | |||
Cash payments for lease liabilities within operating activities: | |||
Operating leases | $ 743 | $ 639 | $ 740 |
Non-cash activities - increase in ROU assets in exchange for lease liabilities: | |||
Operating leases | 812 | 484 | 666 |
Buses and support vehicles | |||
Cash payments for lease liabilities within operating activities: | |||
Operating leases | 137 | 162 | 196 |
Vehicle finance leases | 3 | 4 | 3 |
Cash payments for lease liabilities within financing activities: | |||
Vehicle finance leases | 181 | 193 | 294 |
Non-cash activities - increase in ROU assets in exchange for lease liabilities: | |||
Operating leases | 161 | 115 | 111 |
Vehicle finance leases | $ 153 | $ 223 | $ 257 |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Property | ||
Operating Leases | ||
Within 1 year | $ 646 | |
Between 1 and 2 years | 441 | |
Between 2 and 3 years | 345 | |
Between 3 and 4 years | 286 | |
Between 4 and 5 years | 234 | |
Thereafter | 967 | |
Total lease payments | 2,919 | |
Less: Imputed interest | (480) | |
Total | 2,439 | $ 2,406 |
Buses and support vehicles | ||
Operating Leases | ||
Within 1 year | 64 | |
Between 1 and 2 years | 18 | |
Between 2 and 3 years | 6 | |
Between 3 and 4 years | 1 | |
Between 4 and 5 years | 0 | |
Thereafter | 0 | |
Total lease payments | 89 | |
Less: Imputed interest | (3) | |
Total | 86 | 64 |
Finance Leases | ||
Within 1 year | 44 | |
Between 1 and 2 years | 4 | |
Between 2 and 3 years | 128 | |
Between 3 and 4 years | 0 | |
Between 4 and 5 years | 0 | |
Thereafter | 0 | |
Total lease payments | 176 | |
Less: Imputed interest | 0 | |
Total | $ 176 | $ 242 |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |||
Net income (loss) attributable to Avis Budget Group, Inc. | $ 2,764 | $ 1,285 | $ (684) |
Basic weighted average shares outstanding (in shares) | 47.3 | 64.9 | 70.5 |
Options and non-vested stock (in shares) | 1.1 | 1.2 | 0 |
Diluted weighted average shares outstanding (in shares) | 48.4 | 66.1 | 70.5 |
Earnings (loss) per share: | |||
Basic (in USD per share) | $ 58.41 | $ 19.79 | $ (9.71) |
Diluted (in USD per share) | $ 57.16 | $ 19.44 | $ (9.71) |
Earnings Per Share - Outstandin
Earnings Per Share - Outstanding Common Stock Equivalents That Were Anti-Dilutive (Detail) - $ / shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive non-vested stock(in dollar per share) | $ 177.70 | $ 26.20 | |
Restricted Stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive non-vested stock (in shares) | 0.2 | 0 | 1.2 |
Restructuring and Other Relat_3
Restructuring and Other Related Charges - Additional Information (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 USD ($) employee | Dec. 31, 2021 USD ($) employee | Dec. 31, 2020 USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||
Number of positions eliminated | employee | 130 | ||
Restructuring expense: | $ 19 | $ 64 | $ 118 |
Charges related to voluntary termination program | 18 | ||
Michael K. Tucker | |||
Restructuring Cost and Reserve [Line Items] | |||
Labor and related expense | $ 1 | 2 | |
John F. North | |||
Restructuring Cost and Reserve [Line Items] | |||
Labor and related expense | $ 5 | ||
T22 | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected number of positions eliminated | employee | 200 | ||
Limited Voluntary Opportunity Plan (“LVOP”) | Personnel Related | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expense: | $ 17 |
Restructuring and Other Relat_4
Restructuring and Other Related Charges - Summary of Changes to Restructuring-Related Liabilities (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Restructuring Reserve [Roll Forward] | |||
Balance, beginning | $ 10 | $ 9 | $ 6 |
Restructuring expense: | 19 | 64 | 118 |
Balance, ending | 4 | 10 | 9 |
Americas | |||
Restructuring Reserve [Roll Forward] | |||
Balance, beginning | 2 | 3 | 2 |
Balance, ending | 1 | 2 | 3 |
International | |||
Restructuring Reserve [Roll Forward] | |||
Balance, beginning | 8 | 6 | 4 |
Balance, ending | 3 | 8 | 6 |
Personnel Related | |||
Restructuring Reserve [Roll Forward] | |||
Balance, beginning | 7 | 4 | 3 |
Balance, ending | 4 | 7 | 4 |
Facility Related | |||
Restructuring Reserve [Roll Forward] | |||
Balance, beginning | 2 | 2 | 1 |
Balance, ending | 0 | 2 | 2 |
Other | |||
Restructuring Reserve [Roll Forward] | |||
Balance, beginning | 1 | 3 | 2 |
Balance, ending | 0 | 1 | 3 |
2020 Optimization | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring expense: | 79 | ||
Restructuring payment/utilization: | (1) | (5) | (71) |
2020 Optimization | Americas | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring expense: | 31 | ||
Restructuring payment/utilization: | 0 | (2) | (29) |
2020 Optimization | International | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring expense: | 48 | ||
Restructuring payment/utilization: | (1) | (3) | (42) |
2020 Optimization | Personnel Related | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring expense: | 73 | ||
Restructuring payment/utilization: | (1) | (5) | (68) |
2020 Optimization | Facility Related | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring expense: | 3 | ||
Restructuring payment/utilization: | 0 | 0 | (2) |
2020 Optimization | Other | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring expense: | 3 | ||
Restructuring payment/utilization: | 0 | 0 | (1) |
Brazil | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring expense: | 1 | 0 | |
Restructuring payment/utilization: | (1) | 1 | |
Brazil | Americas | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring expense: | 1 | ||
Restructuring payment/utilization: | (1) | 1 | |
Brazil | International | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring expense: | 0 | ||
Restructuring payment/utilization: | 0 | 0 | |
Brazil | Personnel Related | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring expense: | 0 | 1 | |
Restructuring payment/utilization: | 0 | 0 | |
Brazil | Facility Related | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring expense: | 0 | 1 | |
Restructuring payment/utilization: | 0 | (1) | |
Brazil | Other | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring expense: | 1 | (2) | |
Restructuring payment/utilization: | (1) | 2 | |
T19 | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring expense: | (2) | 14 | |
Restructuring payment/utilization: | (1) | 1 | (20) |
T19 | Americas | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring expense: | (2) | 14 | |
Restructuring payment/utilization: | 0 | 2 | (16) |
T19 | International | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring expense: | 0 | 0 | |
Restructuring payment/utilization: | (1) | (1) | (4) |
T19 | Personnel Related | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring expense: | 0 | 0 | |
Restructuring payment/utilization: | 0 | (1) | (5) |
T19 | Facility Related | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring expense: | 0 | 0 | |
Restructuring payment/utilization: | (1) | 0 | 0 |
T19 | Other | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring expense: | (2) | 14 | |
Restructuring payment/utilization: | 0 | 2 | $ (15) |
T21 | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring expense: | 3 | 32 | |
Restructuring payment/utilization: | (9) | (25) | |
T21 | Americas | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring expense: | 1 | 5 | |
Restructuring payment/utilization: | (2) | (4) | |
T21 | International | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring expense: | 2 | 27 | |
Restructuring payment/utilization: | (7) | (21) | |
T21 | Personnel Related | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring expense: | 3 | 26 | |
Restructuring payment/utilization: | (8) | (17) | |
T21 | Facility Related | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring expense: | 0 | 4 | |
Restructuring payment/utilization: | (1) | (4) | |
T21 | Other | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring expense: | 0 | 2 | |
Restructuring payment/utilization: | 0 | $ (4) | |
Cost Optimization | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring expense: | 9 | ||
Restructuring payment/utilization: | (7) | ||
Cost Optimization | Americas | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring expense: | 2 | ||
Restructuring payment/utilization: | (2) | ||
Cost Optimization | International | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring expense: | 7 | ||
Restructuring payment/utilization: | (5) | ||
Cost Optimization | Personnel Related | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring expense: | 9 | ||
Restructuring payment/utilization: | (6) | ||
Cost Optimization | Facility Related | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring expense: | 0 | ||
Restructuring payment/utilization: | 0 | ||
Cost Optimization | Other | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring expense: | 0 | ||
Restructuring payment/utilization: | $ (1) |
Acquisitions (Detail)
Acquisitions (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Business Acquisition [Line Items] | ||
Asset acquisition, consideration transferred | $ 23 | $ 28 |
Franchise Rights | ||
Business Acquisition [Line Items] | ||
Finite-lived intangible assets acquired | $ 28 | $ 28 |
Acquired finite-lived intangible assets, weighted average useful life | 1 year | 2 years |
Fleet | ||
Business Acquisition [Line Items] | ||
Property acquired | $ 22 | $ 22 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Assets (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 585 | $ 606 | |
Accumulated Amortization | 463 | 433 | |
Net Carrying Amount | 122 | 173 | |
Indefinite-lived Intangible Assets [Line Items] | |||
Goodwill | 1,070 | 1,108 | $ 1,137 |
Trademarks | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 544 | 551 | |
License agreements | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 290 | 298 | |
Accumulated Amortization | 217 | 193 | |
Net Carrying Amount | $ 73 | 105 | |
License agreements | Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life (in years) | 0 years | ||
License agreements | Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life (in years) | 40 years | ||
License agreements | Weighted Average | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life (in years) | 16 years | ||
Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 247 | 257 | |
Accumulated Amortization | 207 | 204 | |
Net Carrying Amount | $ 40 | 53 | |
Customer relationships | Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life (in years) | 3 years | ||
Customer relationships | Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life (in years) | 20 years | ||
Customer relationships | Weighted Average | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life (in years) | 12 years | ||
Other | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 48 | 51 | |
Accumulated Amortization | 39 | 36 | |
Net Carrying Amount | $ 9 | $ 15 | |
Other | Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life (in years) | 2 years | ||
Other | Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life (in years) | 10 years | ||
Other | Weighted Average | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life (in years) | 9 years |
Intangible Assets - Schedule _2
Intangible Assets - Schedule of Intangible Assets Amortization Expense (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | $ 44 | $ 67 | $ 65 |
License agreements | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | 29 | 47 | 37 |
Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | 10 | 14 | 23 |
Other | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | $ 5 | $ 6 | $ 5 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) $ in Millions | Dec. 31, 2022 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible assets amortization expense, year one | $ 27 |
Intangible assets amortization expense, year two | 22 |
Intangible assets amortization expense, year three | 16 |
Intangible assets amortization expense, year four | 15 |
Intangible assets amortization expense, year five | $ 12 |
Intangible Assets - Schedule _3
Intangible Assets - Schedule of Goodwill (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill [Roll Forward] | |||
Goodwill | $ 3,255 | ||
Accumulated impairment losses as of January 1, 2021 | (2,118) | ||
Goodwill beginning balance | $ 1,108 | $ 1,137 | |
Currency translation adjustments and other | (38) | (29) | |
Goodwill ending balance | 1,070 | 1,108 | |
Americas | |||
Goodwill [Roll Forward] | |||
Goodwill | 2,140 | ||
Accumulated impairment losses as of January 1, 2021 | (1,587) | ||
Goodwill beginning balance | 553 | 553 | |
Currency translation adjustments and other | (3) | 0 | |
Goodwill ending balance | 550 | 553 | |
International | |||
Goodwill [Roll Forward] | |||
Goodwill | 1,115 | ||
Accumulated impairment losses as of January 1, 2021 | $ (531) | ||
Goodwill beginning balance | 555 | 584 | |
Currency translation adjustments and other | (35) | (29) | |
Goodwill ending balance | $ 520 | $ 555 |
Vehicle Rental Activities - Com
Vehicle Rental Activities - Components of Company's Vehicles (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Abstract] | |||
Rental vehicles | $ 17,819 | $ 14,612 | |
Less: Accumulated depreciation | (2,211) | (1,911) | |
Rental Vehicles net, total | 15,608 | 12,701 | |
Vehicles held for sale | 317 | 165 | |
Vehicles, net investment in lease | 36 | 0 | |
Vehicles, net | 15,961 | 12,866 | |
Other accounts payables | 265 | 142 | $ 232 |
Receivables due from former subsidiaries | $ 212 | $ 134 | $ 162 |
Vehicle Rental Activities - C_2
Vehicle Rental Activities - Components Of Vehicle Depreciation And Lease Charges (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 1,709 | $ 1,402 | $ 1,330 |
Lease charges | 138 | 156 | 195 |
(Gain) loss on sale of vehicles, net | (1,019) | (361) | (157) |
Vehicle depreciation and lease charges, net | $ 828 | $ 1,197 | $ 1,368 |
Income Taxes - Provision for (B
Income Taxes - Provision for (Benefit from) Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current | |||
Federal | $ 0 | $ 0 | $ (5) |
State | 137 | 35 | 21 |
Foreign | 61 | 12 | 29 |
Current income tax provision | 198 | 47 | 45 |
Deferred | |||
Federal | 622 | 309 | (104) |
State | (22) | 78 | (90) |
Foreign | 82 | (9) | (123) |
Deferred income tax provision (benefit) | 682 | 378 | (317) |
Provision for (benefit from) income taxes | $ 880 | $ 425 | $ (272) |
Income Taxes - Pretax Income (L
Income Taxes - Pretax Income (Loss) for Domestic and Foreign Operations (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 3,114 | $ 1,529 | $ (590) |
Foreign | 522 | 179 | (366) |
Income (loss) before income taxes | $ 3,636 | $ 1,708 | $ (956) |
Income Taxes - Deferred Income
Income Taxes - Deferred Income Tax Assets And Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred income tax assets: | ||
Net tax loss carryforwards | $ 1,109 | $ 1,480 |
Long-term operating lease liabilities | 666 | 625 |
Accrued liabilities and deferred revenue | 231 | 272 |
Tax credits | 38 | 11 |
Depreciation and amortization | 25 | 19 |
Provision for doubtful accounts | 19 | 18 |
Other | 167 | 100 |
Valuation allowance | (101) | (167) |
Deferred income tax assets | 2,154 | 2,358 |
Deferred income tax liabilities: | ||
Operating lease right-of-use assets | 657 | 614 |
Depreciation and amortization | 90 | 102 |
Prepaid expenses | 24 | 23 |
Other | 4 | 4 |
Deferred income tax liabilities under vehicle programs, net | 775 | 743 |
Deferred income tax assets, net | 1,379 | 1,615 |
Tax loss carryforwards | 97 | 163 |
Deferred tax assets | $ 4 | $ 4 |
Income Taxes - Deferred Incom_2
Income Taxes - Deferred Income Tax assets And Liabilities Related To Vehicle Programs (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred income tax assets: | ||
Other | $ 167 | $ 100 |
Deferred income tax assets | 2,154 | 2,358 |
Deferred income tax liabilities: | ||
Other | 4 | 4 |
Deferred income tax liabilities under vehicle programs, net | 775 | 743 |
Vehicle Programs | ||
Deferred income tax assets: | ||
Depreciation and amortization | 63 | 80 |
Deferred income tax liabilities: | ||
Depreciation and amortization | 2,815 | 2,321 |
Other assets | ||
Deferred income tax assets: | ||
Other | 22 | 19 |
Assets | ||
Deferred income tax assets: | ||
Deferred income tax assets | 85 | 99 |
Other | ||
Deferred income tax liabilities: | ||
Other | 24 | 20 |
Liability | ||
Deferred income tax liabilities: | ||
Deferred income tax liabilities | 2,839 | 2,341 |
Vehicle Programs, Net | ||
Deferred income tax liabilities: | ||
Deferred income tax liabilities under vehicle programs, net | $ 2,754 | $ 2,242 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Income Tax Examination [Line Items] | |
Foreign net operating loss carryforwards | $ 1,100 |
Earnings of foreign subsidiaries | 1,200 |
Unrecognized tax benefits | 24 |
Internal Revenue Service (IRS) | |
Income Tax Examination [Line Items] | |
Federal net operating loss carryforwards net of valuation allowances | $ 3,600 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of U.S Federal Income Tax Statutory Rate and Effective Income Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal statutory rate | 21% | 21% | 21% |
Adjustments to reconcile to the effective rate: | |||
State and local income taxes, net of federal tax benefits | 3.90% | 5.50% | 4.80% |
Changes in valuation allowances | (1.30%) | (0.60%) | 0% |
Taxes on foreign operations at rates different than U.S. federal statutory rates | 1.20% | (2.00%) | 3.10% |
Stock-based compensation | (0.50%) | (0.30%) | (0.10%) |
Other non-deductible (non-taxable) items | 0.40% | 0.60% | (0.40%) |
Other | (0.50%) | 0.70% | 0% |
Effective income tax rate, continuing operations, total | 24.20% | 24.90% | 28.40% |
Income Taxes - Changes in Unrec
Income Taxes - Changes in Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning Balance | $ 58 | $ 57 | $ 54 |
Additions for tax positions related to current year | 4 | 4 | 4 |
Additions for tax positions for prior years | 3 | 3 | 0 |
Reductions for tax positions for prior years | (5) | (3) | (1) |
Settlements | (5) | 0 | (3) |
Foreign currency translation | (2) | (3) | |
Foreign currency translation | 3 | ||
Ending Balance | $ 53 | $ 58 | $ 57 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Income Taxes [Line Items] | ||||
Unrecognized tax benefit in non-current income taxes payable | $ 33 | $ 30 | ||
Accrued interest payable on potential tax liabilities | 31 | 29 | ||
Unrecognized tax benefits | 53 | 58 | $ 57 | $ 54 |
Non Avis Budget Car Rental Tax Contingencies | ||||
Income Taxes [Line Items] | ||||
Unrecognized tax benefits | $ 13 | $ 13 |
Other Current Assets - Schedule
Other Current Assets - Schedule of Other Current Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Assets, Current [Abstract] | ||
Prepaid expenses | $ 252 | $ 205 |
Sales and use taxes | 142 | 238 |
Other | 112 | 95 |
Other current assets | $ 506 | $ 538 |
Property and Equipment, net - S
Property and Equipment, net - Schedule of Property and Equipment Net (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 2,033 | $ 2,097 |
Less: Accumulated depreciation and amortization | (1,439) | (1,560) |
Property and equipment, net | 594 | 537 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 59 | 50 |
Buildings and leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 507 | 525 |
Capitalized software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 906 | 932 |
Furniture, fixtures & equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 382 | 426 |
Projects in process | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 89 | 84 |
Buses and support vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 90 | $ 80 |
Property and Equipment, net - A
Property and Equipment, net - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization expense | $ 181 | $ 205 | $ 218 |
Amortization expense relating to capitalized computer software | 115 | 105 | 113 |
Other accounts payables | 265 | 142 | $ 232 |
Other non-current liabilities | 554 | 625 | |
Capitalized software | |||
Property, Plant and Equipment [Line Items] | |||
Other accounts payables | 19 | 20 | |
Other non-current liabilities | $ 1 | $ 2 |
Accounts Payable and Other Cu_3
Accounts Payable and Other Current Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Accounts Payable and Accrued Liabilities, Current [Abstract] | ||
Short-term operating lease liabilities | $ 555 | $ 496 |
Accounts payable | 466 | 407 |
Accrued advertising and marketing | 268 | 218 |
Accrued sales and use taxes | 246 | 313 |
Accrued payroll and related | 205 | 193 |
Deferred lease revenues – current | 188 | 185 |
Public liability and property damage insurance liabilities – current | 174 | 159 |
Other | 445 | 418 |
Accounts payable and other current liabilities | $ 2,547 | $ 2,389 |
Long-term Corporate Debt and _3
Long-term Corporate Debt and Borrowing Arrangements - Schedule of Long-Term Debt (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Aug. 31, 2020 | Jul. 31, 2019 | Oct. 31, 2018 | Mar. 31, 2017 | Sep. 30, 2016 |
Debt Instrument [Line Items] | ||||||||
Other | $ 18 | $ 19 | ||||||
Deferred financing fees | (44) | (48) | ||||||
Total | 4,671 | 4,009 | ||||||
Less: Short-term debt and current portion of long-term debt | 27 | 19 | ||||||
Long-term debt | $ 4,644 | 3,990 | ||||||
Senior Notes | 4.125% euro-denominated Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument interest percentage | 4.125% | 4.125% | ||||||
Long-term debt | $ 321 | 341 | ||||||
Senior Notes | 4.500% euro-denominated Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument interest percentage | 4.50% | 4.50% | ||||||
Long-term debt | $ 268 | 284 | ||||||
Senior Notes | 4.750% euro-denominated Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument interest percentage | 4.75% | 4.75% | ||||||
Long-term debt | $ 375 | 398 | ||||||
Senior Notes | 5.750% Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument interest percentage | 5.75% | 5.75% | 5.75% | |||||
Long-term debt | $ 732 | 728 | ||||||
Senior Notes | 4.750% Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument interest percentage | 4.75% | 4.75% | ||||||
Long-term debt | $ 500 | 500 | ||||||
Senior Notes | 5.375% Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument interest percentage | 5.375% | 5.375% | ||||||
Long-term debt | $ 600 | 600 | ||||||
Loans Payable | Floating Rate Term Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | 1,176 | 1,187 | ||||||
Loans Payable | Floating Rate Term Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | $ 725 | $ 0 |
Long-term Corporate Debt and _4
Long-term Corporate Debt and Borrowing Arrangements - Additional Information (Detail) | 1 Months Ended | 12 Months Ended | ||||||||||||
Apr. 01, 2020 USD ($) | Mar. 31, 2022 USD ($) | Mar. 31, 2021 USD ($) | Aug. 31, 2020 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Feb. 29, 2020 USD ($) | Jul. 31, 2019 USD ($) | Oct. 31, 2018 EUR (€) | Apr. 30, 2017 EUR (€) | Mar. 31, 2017 EUR (€) | Oct. 31, 2016 EUR (€) | Sep. 30, 2016 EUR (€) | |
Debt Instrument [Line Items] | ||||||||||||||
Early extinguishment of debt | $ 0 | $ 136,000,000 | $ 9,000,000 | |||||||||||
Loans Payable | Floating Rate Term Loan | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Face amount | $ 750,000,000 | |||||||||||||
Debt issuance discount, percent | 97% | |||||||||||||
Aggregate interest rate | 7.92% | |||||||||||||
Loans Payable | Floating Rate Term Loan | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Face amount | $ 1,200,000,000 | |||||||||||||
Fixed interest rate | 1.75% | |||||||||||||
Percentage of margin aggregate interest rate | 6.14% | |||||||||||||
Loans Payable | 5.5% Senior Notes Due 2023 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Repayments of debt | $ 100,000,000 | |||||||||||||
Loans Payable | Interest rate swaps | Floating Rate Term Loan | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Fixed interest rate | 4.75% | |||||||||||||
Amount of hedged item | $ 700,000,000 | |||||||||||||
Loans Payable | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Floating Rate Term Loan | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Basis points | 3.50% | |||||||||||||
Senior Notes | 5.5% Senior Notes Due 2023 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Face amount | $ 100,000,000 | $ 400,000,000 | ||||||||||||
Debt instrument interest percentage | 5.50% | 5.50% | 5.50% | |||||||||||
Senior Notes | 4.125% euro-denominated Senior Notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Face amount | € | € 300,000,000 | |||||||||||||
Debt instrument interest percentage | 4.125% | 4.125% | ||||||||||||
Senior Notes | 6% euro-denominated Senior Notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument interest percentage | 6% | 6% | ||||||||||||
Repurchased face amount | € | € 175,000,000 | € 275,000,000 | ||||||||||||
Repurchase amount | € | € 180,000,000 | |||||||||||||
Senior Notes | 4.500% euro-denominated Senior Notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Face amount | € | € 250,000,000 | |||||||||||||
Debt instrument interest percentage | 4.50% | 4.50% | ||||||||||||
Senior Notes | 4.750% euro-denominated Senior Notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Face amount | € | € 350,000,000 | |||||||||||||
Debt instrument interest percentage | 4.75% | 4.75% | ||||||||||||
Senior Notes | 5.125% Senior Notes Due 2022 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument interest percentage | 5.125% | |||||||||||||
Repurchase amount | € | € 410,000,000 | |||||||||||||
Senior Notes | 5.750% Senior Notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Face amount | $ 350,000,000 | $ 400,000,000 | ||||||||||||
Debt instrument interest percentage | 5.75% | 5.75% | 5.75% | |||||||||||
Issued percentage of face value | 92% | |||||||||||||
Senior Notes | 4.750% Senior Notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Face amount | $ 500,000,000 | |||||||||||||
Debt instrument interest percentage | 4.75% | 4.75% | ||||||||||||
Senior Notes | 6.375% Senior Notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Repayments of debt | $ 356,000,000 | |||||||||||||
Debt instrument interest percentage | 6.375% | |||||||||||||
Senior Notes | 5.250% Senior Notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Repayments of debt | $ 142,000,000 | |||||||||||||
Debt instrument interest percentage | 5.25% | |||||||||||||
Senior Notes | 5.375% Senior Notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Face amount | $ 600,000,000 | |||||||||||||
Debt instrument interest percentage | 5.375% | 5.375% | ||||||||||||
Senior Notes | 10.500% Senior Secured Notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Repayments of debt | $ 599,000,000 | |||||||||||||
Debt instrument interest percentage | 10.50% |
Long-term Corporate Debt and _5
Long-term Corporate Debt and Borrowing Arrangements - Schedule of Committed Credit Facilities (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Line of Credit Facility [Line Items] | |
Outstanding Borrowings | $ 13,861 |
Available Capacity | 1,931 |
Debt Insturments | |
Line of Credit Facility [Line Items] | |
2023 | 27 |
2024 | 346 |
2025 | 291 |
2026 | 396 |
2027 | 1,867 |
Thereafter | 1,788 |
Long-term debt | $ 4,715 |
Line of Credit | London Interbank Offered Rate (LIBOR) | Revolving Credit Facility | |
Line of Credit Facility [Line Items] | |
Basis points | 1.75% |
Line of Credit | Revolving Credit Facility | |
Line of Credit Facility [Line Items] | |
Total Capacity | $ 2,000 |
Outstanding Borrowings | 0 |
Letters of Credit Issued | 966 |
Available Capacity | $ 1,034 |
Debt under Vehicle Programs a_3
Debt under Vehicle Programs and Borrowing Arrangements - Schedule Of Debt Under Vehicle Programs (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Total | $ 13,809 | $ 11,390 |
Deferred financing fees | 44 | 48 |
Americas – Debt due to Avis Budget Rental Car Funding | ||
Debt Instrument [Line Items] | ||
Total | 11,322 | 8,889 |
Americas – Debt borrowings | ||
Debt Instrument [Line Items] | ||
Total | 598 | 612 |
International – Debt borrowings | ||
Debt Instrument [Line Items] | ||
Total | 1,700 | 1,757 |
International – Finance leases | ||
Debt Instrument [Line Items] | ||
Total | 176 | 177 |
Other | ||
Debt Instrument [Line Items] | ||
Total | 65 | 3 |
Deferred financing fees | ||
Debt Instrument [Line Items] | ||
Deferred financing fees | (52) | (48) |
Deferred financing fees | Vehicle-backed debt due to Avis Budget Rental Car Funding | ||
Debt Instrument [Line Items] | ||
Deferred financing fees | $ 47 | $ 41 |
Debt under Vehicle Programs A_4
Debt under Vehicle Programs And Borrowing Arrangements - Additional Information (Detail) $ in Millions, € in Billions | 108 Months Ended | ||||||||||
Dec. 31, 2022 EUR (€) | Dec. 31, 2022 USD ($) | Nov. 30, 2022 USD ($) | Jul. 31, 2022 USD ($) | Jun. 30, 2022 USD ($) | May 31, 2022 USD ($) | Apr. 30, 2022 USD ($) | Dec. 31, 2021 | Nov. 30, 2021 USD ($) | Jun. 30, 2021 USD ($) | May 31, 2021 USD ($) | |
Debt Instrument [Line Items] | |||||||||||
Leasing’s vehicles and related assets | $ 13,200 | ||||||||||
Asset-backed securities, at carrying value | $ 0 | $ 660 | |||||||||
Weighted average discount rate | 1.82% | 1.25% | |||||||||
Debt Due To Rental Car Funding August 2026 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Asset-backed securities, at carrying value | $ 800 | ||||||||||
Avis Budget Rental Car Funding Program March 2024 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Asset-backed securities, at carrying value | $ 96 | ||||||||||
Avis Budget Rental Car Funding Program September 2024 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Asset-backed securities, at carrying value | 105 | ||||||||||
Avis Budget Rental Car Funding Program August 2025 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Asset-backed securities, at carrying value | $ 103 | ||||||||||
Debt Due To Rental Car Funding February2027 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Asset-backed securities, at carrying value | $ 650 | ||||||||||
Avis Budget Rental Car Funding Program March 2025 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Asset-backed securities, at carrying value | $ 87 | ||||||||||
Avis Budget Rental Car Funding Program March 2023 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Asset-backed securities, at carrying value | 68 | ||||||||||
Avis Budget Rental Car Funding Program September 2023 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Asset-backed securities, at carrying value | $ 55 | ||||||||||
Avis Budget Rental Car Funding Program September 2022 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Asset-backed securities, at carrying value | $ 800 | ||||||||||
Avis Budget Rental Car Funding Program February 2026 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Asset-backed securities, at carrying value | $ 374 | ||||||||||
Avis Budget Rental Car Funding Program February 2028 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Asset-backed securities, at carrying value | $ 389 | ||||||||||
Avis Budget Rental Car Funding Program April 2026 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Asset-backed securities, at carrying value | $ 500 | ||||||||||
Avis Budget Rental Car Funding Program | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Weighted average interest rate | 4.07% | 2.66% | |||||||||
Americas – Debt borrowings | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Weighted average interest rate | 4.26% | 2.64% | |||||||||
European Rental Fleet Securitization | |||||||||||
Debt Instrument [Line Items] | |||||||||||
European credit facility | € | € 1.7 | ||||||||||
International – Debt borrowings | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Weighted average interest rate | 3.92% | 1.66% |
Debt under Vehicle Programs a_5
Debt under Vehicle Programs and Borrowing Arrangements - Schedule Of Contractual Maturities (Detail) - Vehicle Programs $ in Millions | Dec. 31, 2022 USD ($) |
Debt Instrument [Line Items] | |
2023 | $ 2,235 |
2024 | 5,485 |
2025 | 2,351 |
2026 | 2,124 |
2027 | 1,238 |
Thereafter | 428 |
Total | 13,861 |
Bank And Bank-Sponsored Facilities | |
Debt Instrument [Line Items] | |
2023 | 400 |
2024 | $ 2,400 |
Debt under Vehicle Programs a_6
Debt under Vehicle Programs and Borrowing Arrangements - Schedule Of Available Funding Under Vehicle Programs (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Total Capacity | $ 15,792 | |
Total | 13,809 | $ 11,390 |
Available Capacity | 1,931 | |
Outstanding Borrowings | 13,861 | |
Americas – Debt due to Avis Budget Rental Car Funding | ||
Debt Instrument [Line Items] | ||
Total | 11,322 | 8,889 |
Americas – Debt due to Avis Budget Rental Car Funding | Affiliated Entity | ||
Debt Instrument [Line Items] | ||
Total Capacity | 11,921 | |
Available Capacity | 599 | |
Americas – Debt due to Avis Budget Rental Car Funding | Affiliated Entity | Secured Debt | ||
Debt Instrument [Line Items] | ||
Outstanding Borrowings | 13,000 | |
Americas – Debt borrowings | ||
Debt Instrument [Line Items] | ||
Total Capacity | 970 | |
Total | 598 | 612 |
Available Capacity | 372 | |
Americas – Debt borrowings | Secured Debt | ||
Debt Instrument [Line Items] | ||
Outstanding Borrowings | 1,000 | |
International – Debt borrowings | ||
Debt Instrument [Line Items] | ||
Total Capacity | 2,628 | |
Total | 1,700 | 1,757 |
Available Capacity | 928 | |
International – Debt borrowings | Secured Debt | ||
Debt Instrument [Line Items] | ||
Outstanding Borrowings | 2,600 | |
International – Finance leases | ||
Debt Instrument [Line Items] | ||
Total Capacity | 208 | |
Total | 176 | 177 |
Available Capacity | 32 | |
International – Finance leases | Secured Debt | ||
Debt Instrument [Line Items] | ||
Outstanding Borrowings | 200 | |
Other | ||
Debt Instrument [Line Items] | ||
Total Capacity | 65 | |
Total | 65 | $ 3 |
Available Capacity | $ 0 |
Commitments And Contingencies (
Commitments And Contingencies (Detail) $ in Millions | 1 Months Ended | 12 Months Ended | |||
Nov. 30, 2017 lawsuit | Nov. 30, 2011 class | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Schedule Of Commitments And Contingencies [Line Items] | |||||
Range of possible loss (up to) | $ 40 | ||||
Purchase obligation over the next twelve months | 6,700 | ||||
Purchase commitment period increase | 800 | ||||
Aggregate purchase obligations | 102 | ||||
Receivables due from former subsidiaries | 212 | $ 134 | $ 162 | ||
Liabilities accrued for asset retirement obligations | 26 | $ 28 | |||
Realogy | |||||
Schedule Of Commitments And Contingencies [Line Items] | |||||
Receivables due from former subsidiaries | 27 | ||||
Wyndham | |||||
Schedule Of Commitments And Contingencies [Line Items] | |||||
Receivables due from former subsidiaries | $ 16 | ||||
Jose Mendez v Avis Budget Group Inc | Electronic Toll Service Dispute | |||||
Schedule Of Commitments And Contingencies [Line Items] | |||||
Number of cases brought by plaintiffs | class | 2 | ||||
Jose Mendez v Avis Budget Group Inc | Breach of Contract | |||||
Schedule Of Commitments And Contingencies [Line Items] | |||||
Number of claims filed | lawsuit | 2 | ||||
Jose Mendez v Avis Budget Group Inc | Fines And Fees Charged To Renters | |||||
Schedule Of Commitments And Contingencies [Line Items] | |||||
Number of claims filed | lawsuit | 1 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) shares in Millions | 12 Months Ended | 36 Months Ended | |||
Feb. 10, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2022 | |
Equity [Abstract] | |||||
Stock repurchase program, authorized amount (up to) | $ 7,100,000,000 | $ 7,100,000,000 | |||
Net activity related to restricted stock units (in shares) | 36 | 36 | 36 | ||
Share repurchased during period | $ 3,267,000,000 | $ 1,443,000,000 | $ 113,000,000 | 4,800,000,000 | |
Remaining authorized repurchase amount | $ 691,000,000 | $ 691,000,000 | |||
Board of Directors Chairman | |||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||||
Shares issued (in shares) | 15 |
Stockholders' Equity - Accumula
Stockholders' Equity - Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Total stockholders’ equity | $ (700) | $ (209) | $ (155) | $ 656 |
Other comprehensive income (loss) before reclassifications | 22 | 22 | (42) | |
Amounts reclassified from accumulated other comprehensive income (loss) | 10 | 32 | 12 | |
Other comprehensive income (loss) | 32 | 54 | (30) | |
Ending balance | (700) | (209) | (155) | |
Currency Translation Adjustments | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Total stockholders’ equity | (30) | 16 | 40 | 9 |
Other comprehensive income (loss) before reclassifications | (46) | (35) | 33 | |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 11 | (2) | |
Other comprehensive income (loss) | (46) | (24) | 31 | |
Ending balance | (30) | 16 | 40 | |
Net Unrealized Gains (Losses) on Cash Flow Hedges | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Total stockholders’ equity | 45 | (19) | (51) | (20) |
Other comprehensive income (loss) before reclassifications | 57 | 18 | (39) | |
Amounts reclassified from accumulated other comprehensive income (loss) | 7 | 14 | 8 | |
Other comprehensive income (loss) | 64 | 32 | (31) | |
Ending balance | 45 | (19) | (51) | |
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) | 7 | 12 | 6 | |
Reclassification from accumulated other comprehensive income (loss) into interest expense | 9 | 17 | 9 | |
Net Unrealized Gains (Losses) on Cash Flow Hedges | Vehicle Interest Expense | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Amounts reclassified from accumulated other comprehensive income (loss) | 2 | 2 | ||
Minimum Pension Liability Adjustment | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Total stockholders’ equity | (116) | (130) | (176) | (146) |
Other comprehensive income (loss) before reclassifications | 11 | 39 | (36) | |
Amounts reclassified from accumulated other comprehensive income (loss) | 3 | 7 | 6 | |
Other comprehensive income (loss) | 14 | 46 | (30) | |
Ending balance | (116) | (130) | (176) | |
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) | 3 | 7 | 6 | |
Reclassification from accumulated other comprehensive income (loss) into interest expense | 5 | 9 | 9 | |
Accumulated Other Comprehensive Income (Loss) | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Total stockholders’ equity | (101) | (133) | (187) | $ (157) |
Ending balance | (101) | $ (133) | $ (187) | |
Foreign Exchange Forward | Derivatives designated as hedging instruments | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Derivatives used in net investment hedge, net of tax | $ 114 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Aug. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Sep. 01, 2022 | |
Related Party Transaction [Line Items] | ||||
Contributions from non-controlling interests | $ 24 | $ 38 | ||
Non-controlling interests | 3 | 11 | ||
Assets | 25,927 | $ 22,600 | ||
Avis Mobility Ventures LLC (AMV) | Receivables From Related Party | Affiliated Entity | ||||
Related Party Transaction [Line Items] | ||||
Due from related parties | 6 | |||
Avis Mobility Ventures LLC (AMV) | Finance Lease Receivable | Affiliated Entity | ||||
Related Party Transaction [Line Items] | ||||
Due from related parties | 36 | |||
Avis Mobility Ventures LLC (AMV) | Avis Mobility Ventures LLC (AMV) | Affiliated Entity | ||||
Related Party Transaction [Line Items] | ||||
Equity investments | 49 | |||
Loss on equity method investments | 10 | |||
Avis Mobility Ventures LLC (AMV) | Avis Mobility Ventures LLC (AMV) | Administrative Services | Affiliated Entity | ||||
Related Party Transaction [Line Items] | ||||
Revenue from related parties | 7 | |||
SRS Mobility Ventures, LLC | Subsidiary Equity | ||||
Related Party Transaction [Line Items] | ||||
Ownership acquired percentage | 33.34% | |||
Subsidiary Equity | ||||
Related Party Transaction [Line Items] | ||||
Assets | 49 | |||
Gain on deconsolidation | $ 10 | |||
Subsidiary Equity | SRS Mobility Ventures, LLC | ||||
Related Party Transaction [Line Items] | ||||
Contributions from non-controlling interests | $ 37.5 | |||
Non-controlling interests | $ 62 | |||
Subsidiary Equity | SRS Mobility Ventures, LLC | Company Subsidiary | ||||
Related Party Transaction [Line Items] | ||||
Ownership interest | 51% |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 USD ($) shares | Dec. 31, 2020 USD ($) shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum number of shares reserved for grant of awards (in shares) | 22,500,000 | ||
Shares available for grant under the plan (in shares) | 4,100,000 | ||
Share based compensation percentage in annual base salary, min | 50% | ||
Share based compensation percentage in annual base salary, max | 100% | ||
Shares issued to non-employee directors (in shares) | 2,500 | 8,800 | 34,000 |
Stock-based compensation expense | $ | $ 25 | $ 30 | $ 9 |
stock-based compensation expense, net of tax | $ | $ 17 | $ 21 | $ 7 |
Time-based RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Performance-based and market-based RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Share holder to receive shares of common stock upon vesting period | 1 | ||
Number of RSUs target award vested range maximum | 20% |
Stock-Based Compensation - Assu
Stock-Based Compensation - Assumptions Used (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Dividend yield | 0% |
Performance-based and market-based RSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected volatility of stock price | 91% |
Risk-free interest rate | 0.18% |
Valuation period | 3 years |
Dividend yield | 0% |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Based Compensation Activity (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Weighted Average Grant Date Fair Value | |||
Fair value vested in period | $ 22 | $ 17 | $ 19 |
Cost not yet recognized | $ 49 | ||
Period for recognition | 1 year | ||
Time-based RSUs | |||
Number of Shares | |||
Balance (in shares) | 671 | ||
Granted (in shares) | 180 | ||
Vested (in shares) | (360) | ||
Forfeited (in shares) | (40) | ||
Balance (in shares) | 451 | 671 | |
Weighted Average Grant Date Fair Value | |||
Balance (in dollars per share) | $ 39.39 | ||
Granted (in dollars per share) | 172.34 | $ 65.23 | $ 23.14 |
Vested (in dollars per share) | 37.35 | ||
Forfeited (in dollars per share) | 61.80 | ||
Balance (in dollars per share) | $ 39.39 | ||
Outstanding and expected to vest, weighted average grant date fair value (in dollars per share) | $ 92.06 | ||
Outstanding and expected to vest weighted average remaining contractual term (in years) | 1 year 1 month 6 days | ||
Aggregate intrinsic value, outstanding and expected to vest | $ 74 | ||
Performance-based and market-based RSUs | |||
Number of Shares | |||
Balance (in shares) | 886 | ||
Granted (in shares) | 99 | ||
Vested (in shares) | (254) | ||
Forfeited (in shares) | (40) | ||
Balance (in shares) | 691 | 886 | |
Outstanding and expected to vest (in shares) | 683 | ||
Weighted Average Grant Date Fair Value | |||
Balance (in dollars per share) | $ 35.40 | ||
Granted (in dollars per share) | 193.48 | $ 62.27 | $ 21.06 |
Vested (in dollars per share) | 34.24 | ||
Forfeited (in dollars per share) | 49.75 | ||
Balance (in dollars per share) | 57.56 | $ 35.40 | |
Outstanding and expected to vest, weighted average grant date fair value (in dollars per share) | $ 55.99 | ||
Outstanding and expected to vest weighted average remaining contractual term (in years) | 10 months 24 days | ||
Outstanding weighted average remaining contractual terms (in years) | 10 months 24 days | ||
Aggregate intrinsic value, outstanding and expected to vest | $ 112 | ||
Aggregate intrinsic value outstanding | $ 113 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Contributions | $ 26 | $ 22 | $ 23 |
Projected benefit obligation | 332 | 453 | |
Plan assets | 235 | 297 | |
Accumulated benefit obligation | 329 | 453 | |
Plan assets | 235 | 303 | |
Accumulated benefit obligation | 571 | 872 | |
Estimated future benefit payments, 2023 | 30 | ||
Estimated future benefit payments, 2024 | 31 | ||
Estimated future benefit payments, 2025 | 32 | ||
Estimated future benefit payments, 2026 | 33 | ||
Estimated future benefit payments, 2027 | 34 | ||
Estimated future benefit payments, 2028 to 2032 | 183 | ||
Company contributions to multiemployer plans | $ 8 | $ 7 | $ 7 |
Equity Securities | Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Investment in plan assets (in percent) | 35% | ||
Equity Securities | Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Investment in plan assets (in percent) | 55% | ||
Debt Securities | Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Investment in plan assets (in percent) | 35% | ||
Debt Securities | Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Investment in plan assets (in percent) | 55% | ||
Alternative Investment | Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Investment in plan assets (in percent) | 5% | ||
Alternative Investment | Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Investment in plan assets (in percent) | 15% | ||
Domestic Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Long-term rate of return on plan assets | 6.25% | 6.75% | 7% |
Expected company contributions | $ 1 | ||
Foreign Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Long-term rate of return on plan assets | 4.39% | 3.71% | 3.80% |
Employee Benefit Plans - Summar
Employee Benefit Plans - Summary Of Net Periodic Benefit Cost (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 5 | $ 6 | $ 5 |
Interest cost | 16 | 12 | 17 |
Expected return on plan assets | (37) | (35) | (31) |
Amortization of unrecognized amounts | 5 | 9 | 9 |
Net periodic (benefit) cost | $ (11) | $ (8) | $ 0 |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Expected Return (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Selling, general and administrative | Selling, general and administrative | Selling, general and administrative |
Operating Expense | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 4 | $ 4 | $ 4 |
Selling, General and Administrative Expenses | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 1 | $ 2 | $ 1 |
Employee Benefit Plans - Summ_2
Employee Benefit Plans - Summary of Funded Status of Pension Plans (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Change in Benefit Obligation | |||
Benefit obligation at end of prior year | $ 881 | $ 926 | |
Service cost | 5 | 6 | $ 5 |
Interest cost | 16 | 12 | 17 |
Actuarial (gain) loss | (247) | (17) | |
Plan amendments | (1) | (3) | |
Currency translation adjustment | (51) | (12) | |
Net benefits paid | (28) | (31) | |
Benefit obligation at end of current year | 575 | 881 | 926 |
Change in Plan Assets | |||
Fair value of assets at end of prior year | 772 | 722 | |
Actual return on plan assets | (196) | 71 | |
Employer contributions | 12 | 16 | |
Currency translation adjustment | (46) | (5) | |
Net benefits paid | (28) | (32) | |
Fair value of assets at end of current year | 514 | 772 | $ 722 |
Funded Status | |||
Non-current assets | 36 | 50 | |
Current liabilities | (4) | (5) | |
Non-current liabilities | (93) | (154) | |
Net funded status | $ (61) | $ (109) |
Employee Benefit Plans - Summ_3
Employee Benefit Plans - Summary Of Assumptions Used To Determine Pension Obligations And Pension Costs (Detail) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net periodic benefit cost | 2.67% | 2.25% | 3.10% |
Benefit obligation | 5.18% | 2.67% | 2.25% |
Long-term rate of return on plan assets | 6.25% | 6.75% | 7% |
Foreign Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net periodic benefit cost | 1.83% | 1.40% | 1.95% |
Benefit obligation | 4.79% | 1.83% | 1.40% |
Long-term rate of return on plan assets | 4.39% | 3.71% | 3.80% |
Employee Benefit Plans - Summ_4
Employee Benefit Plans - Summary Of Defined Benefit Pension Plans' Assets Fair Value (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | $ 514 | $ 772 | $ 722 |
Cash equivalents and short-term investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 24 | 62 | |
U.S. equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 88 | 160 | |
Non-U.S. equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 69 | 145 | |
Government bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 2 | 17 | |
Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 174 | 185 | |
Other assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 157 | 203 | |
Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 254 | 330 | |
Level 1 | Cash equivalents and short-term investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 18 | 14 | |
Level 1 | U.S. equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 69 | 115 | |
Level 1 | Non-U.S. equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 39 | 56 | |
Level 1 | Government bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 0 | 6 | |
Level 1 | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 126 | 134 | |
Level 1 | Other assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 2 | 5 | |
Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 206 | 396 | |
Level 2 | Cash equivalents and short-term investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 6 | 48 | |
Level 2 | U.S. equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 19 | 45 | |
Level 2 | Non-U.S. equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 30 | 89 | |
Level 2 | Government bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 2 | 11 | |
Level 2 | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 48 | 51 | |
Level 2 | Other assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 101 | 152 | |
Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 54 | 46 | |
Level 3 | Cash equivalents and short-term investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 0 | 0 | |
Level 3 | U.S. equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 0 | 0 | |
Level 3 | Non-U.S. equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 0 | 0 | |
Level 3 | Government bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 0 | 0 | |
Level 3 | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 0 | 0 | |
Level 3 | Other assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | $ 54 | $ 46 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Detail) $ in Millions | Dec. 31, 2022 USD ($) |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Estimated loss | $ 16 |
Financial Instruments - Fair Va
Financial Instruments - Fair Value of Derivative Instruments (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Foreign exchange contracts | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount | $ 1,160 | $ 1,655 |
Interest rate caps | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount | 14,219 | 11,900 |
Interest rate caps | Subsidiary Issuers | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount | 6,200 | 3,000 |
Interest rate swaps | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount | 1,450 | 1,450 |
Interest rate caps sold | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount | 9,800 | 7,200 |
Purchase | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount | $ 4,400 | $ 4,700 |
Financial Instruments - Fair _2
Financial Instruments - Fair Value (Level 2) of Derivative Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Fair Value, Asset Derivatives | $ 111 | $ 20 |
Fair Value, Liability Derivatives | 117 | 52 |
Interest rate swaps | Derivatives designated as hedging instruments | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Fair Value, Asset Derivatives | 61 | 2 |
Fair Value, Liability Derivatives | 0 | 27 |
Foreign exchange contracts | Derivatives not designated as hedging instruments | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Fair Value, Asset Derivatives | 4 | 7 |
Fair Value, Liability Derivatives | 6 | 10 |
Interest rate caps | Derivatives not designated as hedging instruments | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Fair Value, Asset Derivatives | 46 | 11 |
Fair Value, Liability Derivatives | $ 111 | $ 15 |
Financial Instruments - Schedul
Financial Instruments - Schedule Of Effect Of Derivatives Recognized (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative gain (loss) recognized in OCI | $ 143 | $ 84 | $ (109) |
Interest rate swaps | Derivatives designated as hedging instruments | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative gain (loss) recognized in OCI | 64 | 32 | (31) |
Euro-denominated notes | Derivatives designated as hedging instruments | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative gain (loss) recognized in OCI | 44 | 56 | (67) |
Foreign exchange contract | Derivatives not designated as hedging instruments | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative gain (loss) recognized in OCI | 36 | (3) | (5) |
Foreign exchange contract | Interest Expense | Derivatives not designated as hedging instruments | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative gain (loss) recognized in OCI | 39 | (2) | (3) |
Foreign exchange contract | Operating Expense | Derivatives not designated as hedging instruments | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative gain (loss) recognized in OCI | (3) | (1) | (2) |
Interest rate caps | Derivatives not designated as hedging instruments | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative gain (loss) recognized in OCI | (1) | (1) | 0 |
Commodity contract | Derivatives not designated as hedging instruments | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative gain (loss) recognized in OCI | $ 0 | $ 0 | $ (6) |
Financial Instruments - Sched_2
Financial Instruments - Schedule Of Carrying Amounts And Estimated Fair Values (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | $ 4,644 | $ 3,990 |
Carrying Amount | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term debt and current portion of long-term debt | 27 | 19 |
Long-term debt | 4,644 | 3,990 |
Carrying Amount | Level 2 | Interest rate swaps and interest rate caps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate swaps and interest rate caps | 111 | 14 |
Carrying Amount | Vehicle-Backed Debt | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Vehicle-backed debt | 2,423 | 2,528 |
Carrying Amount | Vehicle-backed debt due to Avis Budget Rental Car Funding | Vehicle-Backed Debt | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Vehicle-backed debt | 11,275 | 8,848 |
Estimated Fair Value | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term debt and current portion of long-term debt | 26 | 18 |
Long-term debt | 4,411 | 4,153 |
Estimated Fair Value | Level 2 | Interest rate swaps and interest rate caps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate swaps and interest rate caps | 111 | 14 |
Estimated Fair Value | Vehicle-Backed Debt | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Vehicle-backed debt | 2,422 | 2,559 |
Estimated Fair Value | Vehicle-backed debt due to Avis Budget Rental Car Funding | Vehicle-Backed Debt | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Vehicle-backed debt | $ 10,848 | $ 9,009 |
Segment Information - Additiona
Segment Information - Additional Information (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Segment Reporting [Abstract] | |
Estimated litigation liability | $ 5 |
Segment Information - Summary o
Segment Information - Summary of Segments Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 11,994 | $ 9,313 | $ 5,402 |
Vehicle depreciation and lease charges, net | 828 | 1,197 | 1,368 |
Vehicle interest, net | 402 | 313 | 318 |
Adjusted EBITDA | 4,133 | 2,411 | (175) |
Non-vehicle depreciation and amortization | 225 | 272 | 286 |
Assets exclusive of assets under vehicle programs | 8,499 | 8,581 | 8,365 |
Assets under vehicle programs | 17,428 | 14,019 | 9,173 |
Capital expenditures (excluding vehicles) | 246 | 108 | 94 |
Americas | |||
Segment Reporting Information [Line Items] | |||
Revenues | 9,474 | 7,557 | 3,965 |
Vehicle depreciation and lease charges, net | 414 | 851 | 968 |
Vehicle interest, net | 348 | 258 | 274 |
Adjusted EBITDA | 3,660 | 2,364 | 72 |
Non-vehicle depreciation and amortization | 141 | 178 | 185 |
Assets exclusive of assets under vehicle programs | 5,798 | 5,746 | 5,510 |
Assets under vehicle programs | 14,269 | 11,437 | 7,155 |
Capital expenditures (excluding vehicles) | 117 | 74 | 65 |
International | |||
Segment Reporting Information [Line Items] | |||
Revenues | 2,520 | 1,756 | 1,437 |
Vehicle depreciation and lease charges, net | 414 | 346 | 400 |
Vehicle interest, net | 54 | 55 | 44 |
Adjusted EBITDA | 560 | 118 | (202) |
Non-vehicle depreciation and amortization | 66 | 84 | 91 |
Assets exclusive of assets under vehicle programs | 2,402 | 2,716 | 2,754 |
Assets under vehicle programs | 3,159 | 2,582 | 2,018 |
Capital expenditures (excluding vehicles) | 33 | 26 | 29 |
Corporate and Other | |||
Segment Reporting Information [Line Items] | |||
Revenues | 0 | 0 | 0 |
Vehicle depreciation and lease charges, net | 0 | 0 | 0 |
Vehicle interest, net | 0 | 0 | 0 |
Adjusted EBITDA | (87) | (71) | (45) |
Non-vehicle depreciation and amortization | 18 | 10 | 10 |
Assets exclusive of assets under vehicle programs | 299 | 119 | 101 |
Assets under vehicle programs | 0 | 0 | 0 |
Capital expenditures (excluding vehicles) | $ 96 | $ 8 | $ 0 |
Segment Information - Reconcili
Segment Information - Reconciliation of Adjusted EBITDA to Income (Loss) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Adjusted EBITDA | $ 4,133 | $ 2,411 | $ (175) |
Less: | |||
Non Vehicle Related Depreciation And Amortization, Excluding Cloud Computing Expense | 235 | 279 | 286 |
Interest expense related to corporate debt, net | |||
Interest expense | 250 | 218 | 231 |
Early extinguishment of debt | 0 | 136 | 9 |
Covid-19 charges | (9) | (2) | 122 |
Restructuring and other related charges | 19 | 64 | 118 |
Non-operational charges related to shareholder activist activity | 0 | 3 | 8 |
Unprecedented personal-injury and other legal matters, net | 1 | 0 | 4 |
Transaction-related costs, net | 8 | 5 | 3 |
Other (income) expense, net | (7) | 0 | 0 |
Income (loss) before income taxes | 3,636 | 1,708 | (956) |
Minimum annual guaranteed rent in excess of concession fees, net | (9) | (2) | 60 |
Vehicles damaged in overflow parking lots, net of insurance proceeds | 0 | (7) | |
Other charges | 0 | 7 | |
Covid-19 charges | (9) | (2) | 122 |
Operating Expense | |||
Interest expense related to corporate debt, net | |||
Covid-19 charges | (9) | (3) | |
Covid-19 charges | (9) | (3) | |
Operating Expense | Cloud Computing Costs | |||
Less: | |||
Non-vehicle depreciation and amortization | 10 | 7 | |
Selling, General and Administrative Expenses | |||
Interest expense related to corporate debt, net | |||
Covid-19 charges | 0 | 1 | |
Covid-19 charges | 0 | 1 | |
COVID-19 Charges | |||
Interest expense related to corporate debt, net | |||
Covid-19 charges | (9) | (2) | |
Covid-19 charges | (9) | (2) | |
Acquisition-related Costs | |||
Less: | |||
Non-vehicle depreciation and amortization | $ 43 | $ 66 | $ 66 |
Segment Information - Summary_2
Segment Information - Summary of Geographic Segment Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 11,994 | $ 9,313 | $ 5,402 |
Assets exclusive of assets under vehicle programs | 8,499 | 8,581 | 8,365 |
Assets under vehicle programs | 17,428 | 14,019 | 9,173 |
Net long-lived assets | 2,330 | 2,369 | 2,568 |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 8,975 | 7,254 | 3,758 |
Assets exclusive of assets under vehicle programs | 5,622 | 5,575 | 5,262 |
Assets under vehicle programs | 13,514 | 10,915 | 6,797 |
Net long-lived assets | 1,386 | 1,328 | 1,421 |
All Other Countries | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 3,019 | 2,059 | 1,644 |
Assets exclusive of assets under vehicle programs | 2,877 | 3,006 | 3,103 |
Assets under vehicle programs | 3,914 | 3,104 | 2,376 |
Net long-lived assets | $ 944 | $ 1,041 | $ 1,147 |
Subsequent Event (Details)
Subsequent Event (Details) - USD ($) | Feb. 28, 2023 | Jan. 31, 2023 | Dec. 31, 2022 | Apr. 30, 2022 |
Subsequent Event [Line Items] | ||||
Asset-backed securities, at carrying value | $ 0 | $ 660,000,000 | ||
Stock repurchase program, authorized amount (up to) | $ 7,100,000,000 | |||
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Asset-backed securities, at carrying value | $ 850,000,000 | |||
Weighted average interest rate | 5.34% | |||
Stock repurchase program, authorized amount (up to) | $ 1,000,000,000 |
Schedule II - Valuation And Q_2
Schedule II - Valuation And Qualifying Accounts (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Allowance for Doubtful Accounts | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 84 | $ 60 | $ 52 |
Expense (Benefit) | 91 | 107 | 73 |
Other Adjustments | (3) | (2) | 3 |
Deductions | (86) | (81) | (68) |
Balance at End of Period | 86 | 84 | 60 |
Tax Valuation Allowance | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 169 | 207 | 214 |
Expense (Benefit) | (63) | (35) | (1) |
Other Adjustments | (3) | (3) | (6) |
Deductions | 0 | 0 | 0 |
Balance at End of Period | $ 103 | $ 169 | $ 207 |