10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 Form 10-Q

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2014

OR

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____ to _____

Commission File No. 001-10308

Avis Budget Group, Inc.

(Exact name of registrant as specified in its charter) 

Delaware		06-0918165
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification Number)
6 Sylvan Way Parsippany, NJ		07054
(Address of principal executive offices)		(Zip Code)
	(973) 496-4700 (Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yesx Noo

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    YesxNoo

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer”, “accelerated filer”, and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	x	Accelerated filer	o
Non-accelerated filer	o	Smaller reporting company	o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    YesoNox

The number of shares outstanding of the issuer’s common stock was 105,396,505 shares as of April 30, 2014.

Table of Contents

		Page
PART I	Financial Information
Item 1.	Financial Statements
	Consolidated Condensed Statements of Comprehensive Income for the Three Months Ended March 31, 2014 and 2013 (Unaudited)	3
	Consolidated Condensed Balance Sheets as of March 31, 2014 and December 31, 2013 (Unaudited)	4
	Consolidated Condensed Statements of Cash Flows for the Three Months Ended March 31, 2014 and 2013 (Unaudited)	5
	Notes to Consolidated Condensed Financial Statements (Unaudited)	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	29
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	37
Item 4.	Controls and Procedures	39
PART II	Other Information
Item 1.	Legal Proceedings	39
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	39
Item 6.	Exhibits	39
	Signatures	40

FORWARD-LOOKING STATEMENTS

Certain statements contained in this Quarterly Report on Form 10-Q may be considered “forward-looking statements” as that term is defined in the Private Securities Litigation Reform Act of 1995. The forward-looking statements contained herein are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause our actual results, performance or achievements to be materially different from those expressed or implied by any such forward-looking statements. Forward-looking statements include information concerning our future financial performance, business strategy, projected plans and objectives. These statements may be identified by the fact that they do not relate to historical or current facts and may use words such as “believes,” “expects,” “anticipates,” “will,” “should,” “could,” “may,” “would,” “intends,” “projects,” “estimates,” “plans,” and similar words, expressions or phrases. The following important factors and assumptions could affect our future results and could cause actual results to differ materially from those expressed in such forward-looking statements:

• the high level of competition in the vehicle rental industry and the impact such competition may have on pricing and rental volume;

• a change in travel demand, including changes in airline passenger traffic;

• a change in our fleet costs as a result of a change in the cost of new vehicles, manufacturer recalls, disruption in the supply of new vehicles, and/or a change in the price at which we dispose of used vehicles either in the used vehicle market or under repurchase or guaranteed depreciation programs;

• risks related to our March 2013 acquisition of Zipcar, Inc. (“Zipcar”), including our ability to realize the synergies contemplated by the transaction and our ability to promptly and efficiently integrate the business into Avis Budget Group;

• the results of operations or financial condition of the manufacturers of our cars, which could impact their ability to perform their payment obligations under our agreements with them, including repurchase and/or guaranteed depreciation arrangements, and/or their willingness or ability to make cars available to us or the rental car industry as a whole on commercially reasonable terms or at all;

• any change in economic conditions generally, particularly during our peak season or in key market segments;

• our ability to continue to achieve and maintain cost savings and successfully implement our business strategies;

• our ability to obtain financing for our global operations, including the funding of our vehicle fleet through the issuance of asset-backed securities and use of the global lending markets;

• an occurrence or threat of terrorism, pandemic disease, natural disasters, military conflict or civil unrest in the locations in which we operate;

• our dependence on third-party distribution channels, third-party suppliers of other services and co-marketing arrangements with third parties;

• our ability to utilize derivative instruments, and the impact of derivative instruments we utilize, which can be affected by fluctuations in interest rates, gasoline prices and exchange rates, changes in government regulations and other factors;

• our ability to accurately estimate our future results;

• any major disruptions in our communication networks or information systems;

• our exposure to uninsured claims in excess of historical levels;

1

• our failure or inability to comply with laws, regulations or contractual obligations or any changes in laws, regulations or contractual obligations, including with respect to personally identifiable information and taxes;

• any impact on us from the actions of our licensees, dealers and independent contractors;

• any substantial changes in the cost or supply of fuel, vehicle parts, energy, labor or other resources on which we depend to operate our business;

• risks related to our indebtedness, including our substantial outstanding debt obligations and our ability to incur substantially more debt;

• our ability to meet the financial and other covenants contained in the agreements governing our indebtedness;

• the terms of agreements among us and our former real estate, hospitality and travel distribution businesses following the separation of those businesses from us in 2006, particularly with respect to the allocation of assets and liabilities, including contingent liabilities and guarantees, the ability of each of the separated companies to perform its obligations, including indemnification obligations, under these agreements, and the right of our former real estate business to control the process for resolving disputes related to contingent liabilities and assets;

• risks associated with litigation or governmental or regulatory inquiries or investigations involving our Company;

• risks related to tax obligations and the effect of future changes in accounting standards;

• risks related to our October 2011 acquisition of Avis Europe plc (“Avis Europe”), including our ability to realize the synergies contemplated by the transaction;

• risks related to completed or future acquisitions or investments that we may pursue, including any incurrence of incremental indebtedness to help fund such transactions and our ability to promptly and effectively integrate any acquired businesses; and

• other business, economic, competitive, governmental, regulatory, political or technological factors affecting our operations, pricing or services.

We operate in a continuously changing business environment and new risk factors emerge from time to time. New risk factors, factors beyond our control, or changes in the impact of identified risk factors may cause actual results to differ materially from those set forth in any forward-looking statements. Accordingly, forward-looking statements should not be relied upon as a prediction of actual results. Moreover, we do not assume responsibility for the accuracy and completeness of those statements. Other factors and assumptions not identified above, including those discussed in “Management’s Discussion and Analysis of Financial Condition and Results of Operations”, “Risk Factors” and other portions of our 2013 Annual Report on Form 10-K may contain forward-looking statements and involve uncertainties that could cause actual results to differ materially from those projected in such statements. Such statements are based upon assumptions and known risks and uncertainties.

Although we believe that our assumptions are reasonable, any or all of our forward-looking statements may prove to be inaccurate and we can make no guarantees about our future performance. Should unknown risks or uncertainties materialize or underlying assumptions prove inaccurate, actual results could differ materially from past results and/or those anticipated, estimated or projected. Except to the extent of our obligations under the federal securities laws, we undertake no obligation to release any revisions to any forward-looking statements, to report events or to report the occurrence of unanticipated events. For any forward-looking statements contained in any document, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.

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PART I — FINANCIAL INFORMATION

Item 1. Financial Statements

Avis Budget Group, Inc.

CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME

(In millions, except per share data)

(Unaudited)

			Three Months Ended   March 31,
			2014		2013
Revenues
	Vehicle rental		$	1,329	$	1,217
	Other		533		474
Net revenues			1,862		1,691
Expenses
	Operating		1,000		931
	Vehicle depreciation and lease charges, net		433		386
	Selling, general and administrative		248		224
	Vehicle interest, net		64		57
	Non-vehicle related depreciation and amortization		41		34
	Interest expense related to corporate debt, net:
		Interest expense	56		58
		Early extinguishment of debt	—		40
	Transaction-related costs		8		8
	Restructuring expense		7		10
Total expenses			1,857		1,748
Income (loss) before income taxes			5		(57		)
Provision for (benefit from) income taxes			1		(11		)
Net income (loss)			$	4	$	(46	)
Comprehensive income (loss)			$	7	$	(69	)
Earnings (loss) per share
	Basic		$	0.03	$	(0.43	)
	Diluted		$	0.03	$	(0.43	)

See Notes to Consolidated Condensed Financial Statements (Unaudited).

3

Avis Budget Group, Inc.

CONSOLIDATED CONDENSED BALANCE SHEETS

(In millions, except share data)

(Unaudited)

		March 31,   2014			December 31,    2013
Assets
Current assets:
	Cash and cash equivalents	$	841		$	693
	Receivables, net	646			619
	Deferred income taxes	174			177
	Other current assets	501			455
Total current assets		2,162			1,944
Property and equipment, net		613			614
Deferred income taxes		1,264			1,299
Goodwill		713			691
Other intangibles, net		932			923
Other non-current assets		362			361
Total assets exclusive of assets under vehicle programs		6,046			5,832
Assets under vehicle programs:
	Program cash	104			116
	Vehicles, net	10,617			9,582
	Receivables from vehicle manufacturers and other	240			391
	Investment in Avis Budget Rental Car Funding (AESOP) LLC—related party	362			363
		11,323			10,452
Total assets		$	17,369		$	16,284
Liabilities and stockholders’ equity
Current liabilities:
	Accounts payable and other current liabilities	$	1,474		$	1,479
	Short-term debt and current portion of long-term debt	393			89
Total current liabilities		1,867			1,568
Long-term debt		3,303			3,305
Other non-current liabilities		840			847
Total liabilities exclusive of liabilities under vehicle programs		6,010			5,720
Liabilities under vehicle programs:
	Debt	1,640			1,681
	Debt due to Avis Budget Rental Car Funding (AESOP) LLC—related party	6,359			5,656
	Deferred income taxes	2,141			2,177
	Other	516			279
		10,656			9,793
Commitments and contingencies (Note 10)
Stockholders’ equity:
	Preferred stock, $0.01 par value—authorized 10 million shares; none issued and outstanding	—			—
	Common stock, $0.01 par value—authorized 250 million shares; issued 137,081,117 and 137,081,056 shares	1			1
	Additional paid-in capital	7,729			7,893
	Accumulated deficit	(2,356		)	(2,360		)
	Accumulated other comprehensive income	120			117
	Treasury stock, at cost—31,457,613 and 30,515,721 shares	(4,791		)	(4,880		)
Total stockholders’ equity		703			771
Total liabilities and stockholders’ equity		$	17,369		$	16,284

See Notes to Consolidated Condensed Financial Statements (Unaudited).

4

Avis Budget Group, Inc.

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS

(In millions)

(Unaudited)

			Three Months Ended   March 31,
			2014			2013
Operating activities
Net income (loss)			$	4		$	(46	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
	Vehicle depreciation		407			353
	Gain on sale of vehicles, net		(11		)	—
	Non-vehicle related depreciation and amortization		41			34
	Amortization of debt financing fees		9			11
	Net change in assets and liabilities, excluding the impact of acquisitions and dispositions:
		Receivables	(27		)	(57		)
		Income taxes and deferred income taxes	1			(21		)
		Accounts payable and other current liabilities	(71		)	(35		)
	Other, net		37			61
Net cash provided by operating activities			390			300
Investing activities
Property and equipment additions			(36		)	(21		)
Proceeds received on asset sales			3			4
Net assets acquired (net of cash acquired)			(124		)	(476		)
Other, net			(7		)	26
Net cash used in investing activities exclusive of vehicle programs			(164		)	(467		)
Vehicle programs:
	Decrease (increase) in program cash		12			(24		)
	Investment in vehicles		(3,275		)	(3,111		)
	Proceeds received on disposition of vehicles		2,470			2,394
			(793		)	(741		)
Net cash used in investing activities			(957		)	(1,208		)

5

Avis Budget Group, Inc. CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Continued) (In millions) (Unaudited)
		Three Months Ended   March 31,
		2014			2013
Financing activities
Proceeds from long-term borrowings		295			1,225
Payments on long-term borrowings		(5		)	(788		)
Net change in short-term borrowings		11			(31		)
Purchases of warrants		—			(28		)
Proceeds from sale of call options		—			37
Repurchases of common stock		(67		)	—
Debt financing fees		(5		)	(10		)
Other, net		(1		)	2
Net cash provided by financing activities exclusive of vehicle programs		228			407
Vehicle programs:
	Proceeds from borrowings	3,775			3,762
	Payments on borrowings	(3,280		)	(3,279		)
	Debt financing fees	(7		)	(17		)
		488			466
Net cash provided by financing activities		716			873
Effect of changes in exchange rates on cash and cash equivalents		(1		)	(2		)
Net increase (decrease) in cash and cash equivalents		148			(37		)
Cash and cash equivalents, beginning of period		693			606
Cash and cash equivalents, end of period		$	841		$	569

See Notes to Consolidated Condensed Financial Statements (Unaudited).

6

Avis Budget Group, Inc.

NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (Unaudited)

(Unless otherwise noted, all dollar amounts in tables are in millions, except per share amounts)

1. Basis of Presentation

Avis Budget Group, Inc. provides car and truck rentals and ancillary services to businesses and consumers worldwide. The accompanying unaudited Consolidated Condensed Financial Statements include the accounts and transactions of Avis Budget Group, Inc. and its subsidiaries (“Avis Budget”), as well as entities in which Avis Budget directly or indirectly has a controlling financial interest (collectively, the “Company”), and have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission for interim financial reporting.

The Company operates the following business segments:

• North America—provides car rentals in the United States and vehicle rentals in Canada, as well as ancillary products and services, and operates the Company’s Zipcar car sharing business in North America.

• International—provides and licenses the Company’s brands to third parties for vehicle rentals and ancillary products and services in Europe, the Middle East, Africa, Asia, South America, Central America, the Caribbean, Australia and New Zealand, and operates the Company's car sharing business in certain of these markets.

• Truck Rental—provides truck rentals and ancillary products and services to consumers and commercial users in the United States.

In conjunction with a change in the Company’s management structure, the financial results of the Company’s Zipcar operations outside of North America will now be reported in the Company’s International segment rather than in the Company’s North America segment. The Company’s business segment financial information presented in these Notes to Consolidated Condensed Financial Statements has been recast to conform with the Company’s current business segment reporting alignment for all periods presented. The Company’s consolidated condensed results were not affected by this change.

In presenting the Consolidated Condensed Financial Statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”), management makes estimates and assumptions that affect the amounts reported and related disclosures. Estimates, by their nature, are based on judgment and available information. Accordingly, actual results could differ from those estimates. In management’s opinion, the Consolidated Condensed Financial Statements contain all adjustments necessary for a fair presentation of interim results reported. The results of operations reported for interim periods are not necessarily indicative of the results of operations for the entire year or any subsequent interim period. These financial statements should be read in conjunction with the Company’s 2013 Annual Report on Form 10-K.

Vehicle Programs. The Company presents separately the financial data of its vehicle programs. These programs are distinct from the Company’s other activities since the assets under vehicle programs are generally funded through the issuance of debt that is collateralized by such assets. The income generated by these assets is used, in part, to repay the principal and interest associated with the debt. Cash inflows and outflows relating to the acquisition of such assets and the principal debt repayment or financing of such assets are classified as activities of the Company’s vehicle programs. The Company believes it is appropriate to segregate the financial data of its vehicle programs because, ultimately, the source of repayment of such debt is the realization of such assets.

Currency Transactions. The Company records the gain or loss of foreign-currency transactions on certain intercompany loans and gain or loss on intercompany loan hedges within interest expense related to corporate debt, net. During the three months ended March 31, 2014 and 2013, the Company recorded losses of $2 million and $4 million, respectively, on such items.

7

Adoption of New Accounting Standards

On January 1, 2014, the Company adopted, as required, Accounting Standards Update No. 2013-04, “Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligations Is Fixed at the Reporting Date,” which requires companies to measure obligations resulting from joint and several liability arrangements for which the total amount of the obligation is fixed at the reporting date. The adoption of this pronouncement did not have a material impact on the Company’s financial statements.

2. Restructuring Activities

Subsequent to the acquisition of Avis Europe, the Company began a restructuring initiative, identifying synergies across the Company, enhancing organizational efficiencies and consolidating and rationalizing processes. During the three months ended March 31, 2014, as part of this process, the Company formally communicated the termination of employment to approximately130employees and recorded$7 millionof expense in connection with these initiatives. These expenses primarily represent severance, outplacement services and other costs associated with employee terminations. As ofMarch 31, 2014, the Company has terminated approximately90of these employees. The Company expects further restructuring expense of approximately$15 millionto be incurred in 2014.

The following tables summarize the changes to our restructuring-related liabilities and identify the amounts recorded within the Company’s reportable segments, and by category, for restructuring expense and corresponding payments and utilizations:

		North America			International			Total
Balance as of January 1, 2014		$	1		$	21		$	22
	Restructuring expense	1			6			7
	Cash payment/utilization	(1		)	(11		)	(12		)
Balance as of March 31, 2014		$	1		$	16		$	17
		Personnel Related			Facility Related			Total
Balance as of January 1, 2014		$	17		$	5		$	22
	Restructuring expense	7			—			7
	Cash payment/utilization	(12		)	—			(12		)
Balance as of March 31, 2014		$	12		$	5		$	17

8

3. Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share (“EPS”) (shares in millions): 

		Three Months Ended   March 31,
		2014		2013
Net income (loss) for basic and diluted EPS		$	4	$	(46	)
Basic weighted average shares outstanding		106.6		107.7
Options, warrants and non-vested stock (a) (b)		2.0		—
Convertible debt (c) (d)		—		—
Diluted weighted average shares outstanding		108.6		107.7
Earnings per share:
	Basic	$	0.03	$	(0.43	)
	Diluted	$	0.03	$	(0.43	)

__________

^(a)  For the three months ended March 31, 2014, the number of anti-dilutive securities which were excluded from the computation of diluted earnings per share was not significant.

^(b)  As the Company incurred a net loss for the three months ended March 31, 2013, 1.5 million outstanding options, 4.7 million warrants and 3.4 million non-vested stock awards have an anti-dilutive effect and therefore are excluded from the computation of diluted weighted average shares outstanding.

^(c)  For the three months ended March 31, 2014, 4.0 million issuable shares underlying the 3½% convertible notes due 2014 have an anti-dilutive effect and therefore are excluded from the computation of diluted weighted average shares outstanding.

^(d)  For the three months ended March 31, 2013, 4.7 million issuable shares underlying the 3½% convertible notes due 2014 have an anti-dilutive effect and therefore are excluded from the computation of diluted weighted average shares outstanding.

4. Acquisitions

Edmonton

In February 2014, the Company completed the acquisition of its Budget licensee for Edmonton and certain other cities in Alberta for approximately $33 million, plus $86 million for acquired fleet. The investment will enable the Company to expand its footprint of Company-operated locations in Canada. The acquired fleet was financed under the Company's existing vehicle financing arrangements in Canada. The excess of the purchase price over preliminary fair value of net assets acquired was allocated to goodwill, which was assigned to the Company’s North America segment and most of which is expected to be deductible for tax purposes. The fair value of the assets acquired and liabilities assumed has not yet been finalized and is therefore subject to change. In connection with this acquisition, approximately $17 million was recorded in identifiable intangible assets (consisting of $11 million related to customer relationships and $6 million related to the reacquired license agreements) and $9 million was recorded in goodwill. The customer relationships will be amortized over a weighted average useful life of approximately 12 years and the license agreements will be amortized over approximately 4 years. In addition, at the time of the acquisition, the Company recorded a $3 million non-cash charge related to the unfavorable license rights reacquired by the Company.

Portugal

In February 2014, the Company reacquired the right to operate the Budget brand in Portugal for approximately $15 million. Approximately $9 million of the total consideration was paid during first quarter 2014 and the remainder is expected to be paid in 2014. The fair value of the intangible assets acquired has not yet been finalized and is therefore subject to change. In connection with this acquisition, approximately $2 million was recorded within license agreements and $13 million was recorded in goodwill. The license agreements will be amortized over 2 years. The goodwill, which was assigned to the Company’s International segment, is expected to be deductible for tax purposes.

9

Brazil

In August 2013, the Company acquired a 50% ownership stake in its Brazilian licensee for $53 million, of which the remaining consideration of $6 million was paid during first quarter 2014.

Zipcar

In March 2013, the Company completed the acquisition of the entire issued share capital of Zipcar, the leading car sharing company, for $473 million, net of acquired cash. Differences between the preliminary allocation of the purchase price and the final allocation were not material.

5. Intangible Assets

Intangible assets consisted of:

	As of March 31, 2014						As of December 31, 2013
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Amortized Intangible Assets
License agreements (a)(b)	$	280	$	55	$	225	$	272	$	52	$	220
Customer relationships (a)	177		39		138		166		35		131
Other	2		1		1		2		1		1
Total	$	459	$	95	$	364	$	440	$	88	$	352
Unamortized Intangible Assets
Goodwill (a)(b)	$	713					$	691
Trademarks	$	568					$	571

__________

^(a)  The increases in carrying amounts reflect the acquisition of the Budget licensee for Edmonton.

^(b)  The increases in carrying amounts reflect the reacquired right to operate the Budget brand in Portugal.

Amortization expense relating to all intangible assets was approximately $7 million and $5 million during first quarter 2014 and 2013, respectively. Based on the Company’s amortizable assets at March 31, 2014, the Company expects amortization expense of approximately $25 million for the remainder of 2014 and approximately $31 million for each of the five fiscal years thereafter.

6. Vehicle Rental Activities

The components of the Company’s vehicles, net within assets under vehicle programs were as follows:

	As of			As of
	March 31,			December 31,
	2014			2013
Rental vehicles	$	11,657		$	10,234
Less: Accumulated depreciation	(1,388		)	(1,411		)
	10,269			8,823
Vehicles held for sale	348			759
Vehicles, net	$	10,617		$	9,582

The components of vehicle depreciation and lease charges, net are summarized below:

	Three Months Ended   March 31,
	2014			2013
Depreciation expense	$	407		$	353
Lease charges	37			33
Gain on sales of vehicles, net	(11		)	—
Vehicle depreciation and lease charges, net	$	433		$	386

10

At March 31, 2014 and 2013, the Company had purchases of vehicles included in payables of $498 million and $496 million, respectively, and sales of vehicles included in receivables of $231 million and $285 million, respectively.

7. Income Taxes

The Company’s effective tax rate for the three months ended March 31, 2014 is a provision of 20.0%. Such rate differs from the Federal statutory rate of 35.0% primarily due to state income taxes.

The Company’s effective tax rate for the three months ended March 31, 2013 was a benefit of 19.3%. Such rate differs from the Federal statutory rate of 35.0% primarily due to the treatment of the expenses for the early extinguishment of corporate debt.

8. Long-term Debt and Borrowing Arrangements

Long-term and other borrowing arrangements consisted of:

		As of		As of
	Maturity Dates	March 31,		December 31,
		2014		2013
3½% Convertible Notes (a)	October 2014	$	66	$	66
4⅞% Senior Notes	November 2017	300		300
Floating Rate Senior Notes (b)	December 2017	247		247
8¼% Senior Notes (c)	January 2019	691		691
Floating Rate Term Loan (d)	March 2019	988		989
9¾% Senior Notes	March 2020	223		223
6% Euro-denominated Senior Notes	March 2021	638		344
5½% Senior Notes	April 2023	500		500
		3,653		3,360
Other		43		34
Total		3,696		3,394
Less: Short-term debt and current portion of long-term debt		393		89
Long-term debt		$	3,303	$	3,305

__________

^(a)  As of March 31, 2014, the 3½% convertible notes are convertible by the holders into approximately 4 million shares of the Company’s common stock.

^(b)  The interest rate on these notes is equal to three-month LIBOR plus 275 basis points, for an aggregate rate of 3.00% at March 31, 2014; the Company has entered into an interest rate swap to hedge its interest rate exposure related to these notes at an aggregate rate of 3.58%.

^(c)  As of March 31, 2014, the Company called $292 million of the 8¼% Senior Notes due 2019 for redemption; accordingly, these are included in current portion of long-term debt.

^(d)  The floating rate term loan is part of the Company’s senior credit facility, which is secured by pledges of capital stock of certain subsidiaries of the Company, and liens on substantially all of the Company’s intellectual property and certain other real and personal property. As of March 31, 2014, the floating term rate loan due 2019 bears interest at the greater of three-month LIBOR or 0.75%, plus 225 basis points, for an aggregate rate of 3.00%. The Company has entered into a swap to hedge $600 million of its interest rate exposure related to the floating rate term loan at an aggregate rate of 3.96%.

In March 2014, the Company issued €200 million (approximately $275 million) of additional 6% Euro-denominated Senior Notes due 2021. These additional notes were sold at 106.75% of their face value, for aggregate proceeds of approximately $295 million, with a yield to maturity of 4.85%. In April 2014, the Company used the proceeds to repurchase $292 million principal amount of its 8¼% Senior Notes for $316 million plus accrued interest.

11

COMMITTED CREDIT FACILITIES AND AVAILABLE FUNDING ARRANGEMENTS

At March 31, 2014, the committed corporate credit facilities available to the Company and/or its subsidiaries were as follows:

	Total Capacity		Outstanding Borrowings		Letters of Credit Issued		Available Capacity
Revolving credit facility maturing 2018 (a)	$	1,650	$	—	$	638	$	1,012
Other facilities (b)	13		1		—		12

__________

^(a)  The senior revolving credit facility bears interest at one-month LIBOR, plus 225 basis points. The senior revolving credit facility is part of the Company’s senior credit facility, which is secured by pledges of capital stock of certain subsidiaries of the Company, and liens on substantially all of the Company’s intellectual property and certain other real and personal property.

^(b)  These facilities encompass bank overdraft lines of credit, bearing interest of 5.14% to 5.69% as of March 31, 2014.

At March 31, 2014, the Company had various uncommitted credit facilities available, under which it had drawn approximately $16 million, which bear interest at rates between 0.52% and 2.50%.

DEBT COVENANTS

The agreements governing the Company’s indebtedness contain restrictive covenants, including restrictions on dividends paid to the Company by certain of its subsidiaries, the incurrence of additional indebtedness by the Company and certain of its subsidiaries, acquisitions, mergers, liquidations, and sale and leaseback transactions. The Company’s senior credit facility contains maximum leverage and minimum interest coverage ratio requirements. As of March 31, 2014, the Company was in compliance with the financial covenants of its senior credit facility.

9. Debt Under Vehicle Programs and Borrowing Arrangements

Debt under vehicle programs including related party debt due to Avis Budget Rental Car Funding (AESOP) LLC (“Avis Budget Rental Car Funding”), consisted of:

	As of		As of
	March 31,		December 31,
	2014		2013
North America - Debt due to Avis Budget Rental Car Funding (a)	$	6,359	$	5,656
North America - Canadian borrowings (a)(b)	482		400
International - Debt borrowings (c)	584		731
International - Capital leases (a)	353		289
Truck Rental - Debt borrowings	211		226
Other	10		35
Total	$	7,999	$	7,337

__________

^(a)  The increase reflects additional borrowings principally to fund an increase in the Company’s fleet driven by increased rental volume.

^(b)  The increase reflects additional borrowings principally to fund an increase in the Company’s fleet driven by the acquisition of its Budget licensee for Edmonton.

^(c)  The decrease is principally related to the timing of borrowings related to recently acquired fleet.

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DEBT MATURITIES

The following table provides the contractual maturities of the Company’s debt under vehicle programs, including related party debt due to Avis Budget Rental Car Funding at March 31, 2014.

	Debt Under Vehicle Programs
Within 1 year (a)	$	1,131
Between 1 and 2 years	2,218
Between 2 and 3 years	1,571
Between 3 and 4 years	902
Between 4 and 5 years	1,601
Thereafter	576
Total	$	7,999

 __________

^(a)  Vehicle-backed debt maturing within one year includes term asset-backed securities of approximately $952 million and bank and bank-sponsored borrowings of $179 million.

COMMITTED CREDIT FACILITIES AND AVAILABLE FUNDING ARRANGEMENTS

As of March 31, 2014, available funding under the Company’s vehicle programs (including related party debt due to Avis Budget Rental Car Funding) consisted of:

	Total Capacity (a)		Outstanding Borrowings		Available Capacity
North America - Debt due to Avis Budget Rental Car Funding (b)	$	8,544	$	6,359	$	2,185
North America - Canadian borrowings (c)	724		482		242
International - Debt borrowings (d)	1,511		584		927
International - Capital leases (e)	468		353		115
Truck Rental - Debt borrowings (f)	230		211		19
Other	10		10		—
Total	$	11,487	$	7,999	$	3,488

__________

^(a)  Capacity is subject to maintaining sufficient assets to collateralize debt.

^(b)  The outstanding debt is collateralized by approximately $8.1 billion of underlying vehicles and related assets.

^(c)  The outstanding debt is collateralized by $604 million of underlying vehicles and related assets.

^(d)  The outstanding debt is collateralized by approximately $1.0 billion of underlying vehicles and related assets.

^(e)  The outstanding debt is collateralized by $387 million of underlying vehicles and related assets.

^(f)  The outstanding debt is collateralized by $351 million of underlying vehicles and related assets.

DEBT COVENANTS

Debt agreements under the Company’s vehicle-backed funding programs contain restrictive covenants, including restrictions on dividends paid to the Company by certain of its subsidiaries and restrictions on indebtedness, mergers, liens, liquidations and sale and leaseback transactions and in some cases also require compliance with certain financial requirements. As of March 31, 2014, the Company is not aware of any instances of non-compliance with any of the financial or restrictive covenants contained in the debt agreements under its vehicle-backed funding programs.

10. Commitments and Contingencies

Contingencies

In 2006, the Company completed the spin-offs of its Realogy and Wyndham subsidiaries. In connection with the spin-offs, Realogy assumed 62.5% and Wyndham assumed 37.5% of certain contingent and other corporate liabilities of the Company that are not primarily related to any of the respective businesses of Realogy, Wyndham, our former Travelport subsidiary and/or the Company’s vehicle rental operations, and in each case incurred or allegedly incurred on or prior to each subsidiary’s disposition (“Assumed Liabilities”). If Realogy or Wyndham were to default on its payment of costs or expenses to the Company

13

related to any Assumed Liabilities, the Company would be responsible for 50% of the defaulting party’s obligation. The Company does not believe that the impact of any resolution of contingent liabilities constituting Assumed Liabilities should result in a material liability to the Company in relation to its consolidated financial position or liquidity, as Realogy and Wyndham each have agreed to assume responsibility for these liabilities. In accordance with the terms of relevant documents, Realogy posted a letter of credit in April 2007 for the benefit of the Company to cover its estimated share of the Assumed Liabilities discussed above, subject to adjustment, although there can be no assurance that such letter of credit will be sufficient or effective to cover Realogy’s actual obligations if and when they arise.

The Company is also named in various litigation that is primarily related to the businesses of its former subsidiaries, including Realogy, and Wyndham and their current or former subsidiaries. The Company is entitled to indemnification from such entities for any liability resulting from such litigation.

Additionally, the Company is also involved in claims, legal proceedings and governmental inquiries related, among other things, to its vehicle rental operations, including, among others, contract and licensee disputes, wage-and-hour claims, competition matters, employment matters, insurance claims, intellectual property claims and other regulatory, environmental, commercial and tax matters. Litigation is inherently unpredictable and, although the Company believes that its accruals are adequate and/or that it has valid defenses in these matters, unfavorable resolutions could occur, which could materially impact the Company’s financial position, results of operations or cash flows.

Commitments to Purchase Vehicles

The Company maintains agreements with vehicle manufacturers under which the Company has agreed to purchase approximately $5.6 billion of vehicles from manufacturers over the next 12 months. The majority of these commitments are subject to the vehicle manufacturers’ satisfying their obligations under their respective repurchase and guaranteed depreciation agreements. The purchase of such vehicles is financed primarily through the issuance of vehicle-backed debt and cash received upon the disposition of vehicles.

Other Purchase Commitments

In the normal course of business, the Company makes various commitments to purchase other goods or services from specific suppliers, including those related to marketing, advertising and capital expenditures. As of March 31, 2014, the Company had approximately $154 million of purchase obligations, which extend through 2018.

Concentrations

Concentrations of credit risk at March 31, 2014 include (i) risks related to the Company’s repurchase and guaranteed depreciation agreements with domestic and foreign car manufacturers, including Ford, General Motors, Chrysler, Peugeot, Volkswagen, Kia, Fiat, Subaru, BMW and Toyota, and primarily with respect to receivables for program cars that have been disposed but for which the Company has not yet received payment from the manufacturers and (ii) risks related to Realogy and Wyndham, including receivables of $61 million and $37 million, respectively, related to certain contingent, income tax and other corporate liabilities assumed by Realogy and Wyndham in connection with their disposition.

Other Guarantees

The Company has provided certain guarantees to, or for the benefit of, subsidiaries of Realogy, Wyndham and Travelport, which, as previously discussed, were sold or spun-off in 2006. These guarantees relate primarily to various real estate operating leases. The maximum potential amount of future payments that the Company may be required to make under the guarantees relating to these leases is estimated to be approximately $47 million, the majority of which expire by the end of 2015. At March 31, 2014, the liability recorded by the Company in connection with these guarantees was approximately $1 million. To the extent that the Company would be required to perform under any of these guarantees, the Company is entitled to indemnification by Realogy and Wyndham, as applicable. The Company monitors the credit ratings and other relevant information for Realogy and Wyndham in order to assess the status of the payment/performance risk of these guarantees.

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11. Stockholders’ Equity

Share Repurchases

In August 2013, the Company obtained Board approval to repurchase of up to $200 million of its common stock. During the three months ended March 31, 2014, the Company repurchased approximately 1,635,000 shares of common stock at a cost of approximately $75 million under the repurchase program. The Company did not repurchase any of its common stock during the three months ended March 31, 2013.

Accumulated Other Comprehensive Income

The components of accumulated other comprehensive income were as follows: 

	Currency Translation Adjustments			Net Unrealized Gains on Cash Flow Hedges		Net Unrealized Gains (Losses) on Available-for Sale Securities			Minimum Pension Liability Adjustment			Accumulated Other Comprehensive Income
Balance, January 1, 2014	$	166		$	1	$	2		$	(52	)	$	117
Net current-period other comprehensive income (a)	3			1		(1		)	—			3
Balance, March 31, 2014	$	169		$	2	$	1		$	(52	)	$	120
Balance, January 1, 2013	$	193		$	—	$	2		$	(85	)	$	110
Net current-period other comprehensive loss (a)	(23		)	—		—			—			(23		)
Balance, March 31, 2013	$	170		$	—	$	2		$	(85	)	$	87

__________

All components of accumulated other comprehensive income are net of tax, except currency translation adjustments, which exclude income taxes related to indefinite investments in foreign subsidiaries and include $11 million loss, net of tax, related to the Company's hedge of its net investment in Euro-denominated foreign operations (See Note 13 - Financial Instruments).

^(a)  For the periods ended March 31, 2014 and 2013, amounts reclassified from accumulated other comprehensive income were not material.

Total Comprehensive Income

Comprehensive income consists of net income and other gains and losses affecting stockholders’ equity that, under GAAP, are excluded from net income.

The components of other comprehensive income were as follows: 

		Three Months Ended   March 31,
		2014			2013
Net income (loss)		$	4		$	(46	)
Other comprehensive income (loss):
	Currency translation adjustments	3			(23		)
	Net unrealized loss on available-for-sale securities	(1		)	—
	Net unrealized gain on cash flow hedges (a)	1			—
		3			(23		)
Total comprehensive income (loss)		$	7		$	(69	)

__________

All components of other comprehensive income are net of tax, except currency translation adjustments, which exclude income taxes related to indefinite investments in foreign subsidiaries.

^(a) The Company’s net unrealized gain on cash flow hedges was $1 million before tax during the three months ended March 31, 2014 and was not material for the three months ended March 31, 2013.

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12. Stock-Based Compensation

The Company records compensation expense for all stock-based awards based on the estimated fair value of the award at the grant date, which is recognized over the vesting period. The Company recorded stock-based compensation expense of $8 million and $4 million ($5 million and $3 million, net of tax) during the three months ended March 31, 2014 and 2013, respectively, related to stock-based awards that were granted by the Company. In jurisdictions with net operating loss carryforwards, tax deductions for exercises and/or vestings of stock-based awards have generated a $57 million tax benefit at March 31, 2014, with a corresponding increase to additional paid-in capital. Approximately $22 million of incremental tax benefits will be recorded in additional paid-in capital when realized in these jurisdictions.

Stock Unit Awards

The Company’s performance-based restricted stock units granted in 2014 and 2013 incorporate a total shareholder return metric. The grant date fair value of these awards is estimated using a Monte Carlo simulation model to estimate the Company’s shareholder-return ranking relative to an applicable stock index. The weighted average assumptions used in the Monte Carlo simulation model to calculate the fair value of the Company’s stock unit awards are as follows:

	Three Months Ended   March 31,
	2014	2013
Expected volatility of stock price	40%	43%
Risk-free interest rate	0.85%	0.39%
Expected term of awards	3 years	3 years
Dividend yield	0.0%	0.0%

The activity related to the Company’s restricted stock units (“RSUs”) and cash units, consisted of (in thousands of shares):

		Time-Based RSUs				Performance-Based and Market-Based RSUs				Cash Unit Awards
		Number of Shares		Weighted Average Grant Date Fair Value		Number of Shares		Weighted Average Grant Date Fair Value		Number of Units	Weighted Average Grant Date Fair Value
Outstanding at January 1, 2014 (a)		1,308		$	17.92	2,043		$	13.79	267	$	14.90
	Granted	352		41.15		235		39.37		—	—
	Vested (b)	(588	)	16.62		(432	)	10.91		—	—
	Forfeited/expired	(56	)	23.49		(32	)	21.48		—	—
Outstanding at March 31, 2014 (c)		1,016		$	26.40	1,814		$	17.66	267	$	14.90

__________

^(a)  Reflects the maximum number of stock units assuming achievement of all performance-, market- and time-vesting criteria and does not include those for non-employee directors. The weighted-average fair value of time-based RSUs, performance-based and market-based RSUs, and cash units granted in 2013 was $21.20, $20.30 and $17.14, respectively.

^(b)  The total grant date fair value of RSUs vested during the three months ended March 31, 2014 and 2013 was $14 million and $14 million, respectively.

^(c)  The Company’s outstanding time-based RSUs, performance-based and market-based RSUs, and cash units had aggregate intrinsic value of $49 million, $88 million and $13 million, respectively. Aggregate unrecognized compensation expense related to time-based RSUs and performance-based and market-based RSUs amounted to $43 million and will be recognized over a weighted average vesting period of 1.3 years. The Company assumes that substantially all outstanding awards will vest over time.

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Stock Options

The stock option activity consisted of (in thousands of shares): 

		Number of Options		Weighted Average Exercise Price		Aggregate Intrinsic Value (in millions)		Weighted Average Remaining Contractual Term (years)
Outstanding at January 1, 2014		979		$	2.82	$	37	5.2
	Granted	—		—		—
	Exercised	(87	)	2.22		4
	Forfeited/expired	—		—		—
Outstanding at March 31, 2014 (a)		892		2.88		41		5.0
Exercisable at March 31, 2014		860		$	2.56	$	40	5.0

__________ 

^(a)  The Company assumes that substantially all outstanding stock options will vest over time.

13. Financial Instruments

Derivative Instruments and Hedging Activities

The Company uses currency exchange contracts to manage its exposure to changes in currency exchange rates associated with its non-U.S.-dollar denominated receivables and forecasted royalties, forecasted earnings of non-U.S. subsidiaries and forecasted non-U.S.-dollar denominated acquisitions. The Company primarily hedges a portion of its current-year currency exposure to the Australian, Canadian and New Zealand dollars, the Euro and the British pound sterling. The majority of forward contracts do not qualify for hedge accounting treatment. The fluctuations in the value of these forward contracts do, however, largely offset the impact of changes in the value of the underlying risk they economically hedge. Forward contracts used to hedge forecasted third-party receipts and disbursements up to 12 months are designated and do qualify as cash flow hedges.

The Company has designated its 6% Euro-denominated notes as a hedge of its net investment in Euro-denominated foreign operations. For the three months ended March 31, 2014, the Company recorded no gain or loss in accumulated other comprehensive income as part of currency translation adjustments. There was no ineffectiveness related to the Company's cash flow or net investment hedges during the three months ended March 31, 2014 and the Company does not expect to reclassify any amounts from accumulated other comprehensive income into earnings over the next 12 months.

The Company uses various hedging strategies including interest rate swaps and interest rate caps to create an appropriate mix of fixed and floating rate assets and liabilities. The Company uses interest rate swaps and interest rate caps to manage the risk related to its floating rate corporate debt and its floating rate vehicle-backed debt. The Company records the effective portion of changes in the fair value of its cash flow hedges to other comprehensive income, net of tax, and subsequently reclassifies these amounts into earnings in the period during which the hedged transaction is recognized. The Company records the gains or losses related to freestanding derivatives, which are not designated as a hedge for accounting purposes, in its consolidated results of operations. The changes in fair values of hedges that are determined to be ineffective are immediately reclassified from accumulated other comprehensive income into earnings. The Company estimates that $6 million of losses currently recorded in accumulated other comprehensive income will be recognized in earnings over the next 12 months.

From time to time, the Company enters into derivative commodity contracts to manage its exposure to changes in the price of unleaded gasoline. Changes in the fair value of these derivatives are recorded within operating expenses.

Certain of the Company’s derivative instruments contain collateral support provisions that require the Company to post cash collateral to the extent that such derivatives are in a liability position. The aggregate fair value of such derivatives and the aggregate fair value of assets needed to settle these derivatives as of March 31, 2014 was approximately $1 million, for which the Company has posted cash collateral in the normal course of business.

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The Company held derivative instruments with absolute notional values as follows:

	As of
	March 31, 2014
Interest rate caps (a)	$	11,981
Interest rate swaps	1,503
Foreign exchange swaps	548
Foreign exchange forward contracts	400
Commodity contracts (millions of gallons of unleaded gasoline)	7

__________

^(a)  Represents $9.7 billion of interest rate caps sold, partially offset by approximately $2.3 billion of interest rate caps purchased. These amounts exclude $7.5 billion of interest rate caps purchased by the Company’s Avis Budget Rental Car Funding subsidiary.

Fair values (Level 2) of derivative instruments were as follows: 

		As of March 31, 2014				As of December 31, 2013
		Fair Value, Asset Derivatives		Fair Value, Liability Derivatives		Fair Value, Asset Derivatives		Fair Value, Liability Derivatives
Derivatives designated as hedging instruments
	Interest rate swaps (a)	$	3	$	—	$	2	$	1
Derivatives not designated as hedging instruments
	Interest rate caps (b)	1		9		2		13
	Interest rate swaps	—		—		—		—
	Foreign exchange swaps and forward contracts (c)	3		13		3		5
	Commodity contracts	—		—		—		—
	Total	$	7	$	22	$	7	$	19

__________

Amounts in this table exclude derivatives issued by Avis Budget Rental Car Funding, as it is not consolidated by the Company; however, certain amounts related to the derivatives held by Avis Budget Rental Car Funding are included within accumulated other comprehensive income, as discussed in Note 11—Stockholders’ Equity.

^(a)  Included in other non-current assets or other non-current liabilities.

^(b)  Included in assets under vehicle programs or liabilities under vehicle programs.

^(c)  Included in other current assets or other current liabilities.

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The effects of derivatives recognized in the Company’s Consolidated Condensed Financial Statements wereas follows:     

		Three Months Ended   March 31,
		2014			2013
Derivatives designated as hedging instruments
	Interest rate swaps (a)	$	1		$	—
Derivatives not designated as hedging instruments (b)
	Interest rate caps (c)	—			3
	Foreign exchange swaps and forward contracts (d)	(18		)	1
	Commodity contracts (e)	—			2
	Total	$	(17	)	$	6

__________

^(a)  Recognized, net of tax, as a component of other comprehensive income within stockholders’ equity.

^(b)  Gains (losses) related to derivative instruments are expected to be largely offset by (losses) gains on the underlying exposures being hedged.

^(c)  Included in interest expense.

^(d)  For the three months ended March 31, 2014, included a $14 million loss in interest expense and a $4 million loss in operating expenses. For the three months ended March 31, 2013, included a $1 million loss in interest expense and a $2 million gain in operating expenses.

^(e)  Included in operating expenses.

Debt Instruments

The carrying amounts and estimated fair values (Level 2) of debt instruments were as follows:

		As of March 31, 2014				As of December 31, 2013
		Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Corporate debt
	Short-term debt and current portion of long-term debt, excluding convertible debt	$	327	$	348	$	23	$	23
	Convertible debt	66		197		66		159
	Long-term debt	3,303		3,397		3,305		3,416
Debt under vehicle programs
	Vehicle-backed debt due to Avis Budget Rental Car Funding	$	6,359	$	6,493	$	5,656	$	5,732
	Vehicle-backed debt	1,631		1,640		1,668		1,675
	Interest rate swaps and interest rate contracts (a)	9		9		13		13

 __________

^(a)  Derivatives in a liability position.

14. Segment Information

The Company’s chief operating decision maker assesses performance and allocates resources based upon the separate financial information from the Company’s operating segments. In identifying its reportable segments, the Company considered the nature of services provided, the geographical areas in which the segments operated and other relevant factors. The Company aggregates two of its operating segments into each of its North America and International reportable segments.

Management evaluates the operating results of each of its reportable segments based upon revenue and “Adjusted EBITDA,” which the Company defines as income from continuing operations before non-vehicle related depreciation and amortization, any impairment charge, restructuring expense, early extinguishment of debt costs, non-vehicle related interest, transaction-related costs and income taxes. The Company’s presentation of Adjusted EBITDA may not be comparable to similarly-titled measures used by other companies. In the first quarter of 2014, the Company revised its definition of Adjusted EBITDA to exclude

19

restructuring expense and has recast its 2013 Adjusted EBITDA to conform with the revised definition, consistent with the manner in which management assesses performance and allocates resources. The Company’s presentation of Adjusted EBITDA may not be comparable to similarly-titled measures used by other companies.

				Three Months Ended March 31,
				2014					2013
				Revenues		Adjusted EBITDA			Revenues (a)		Adjusted EBITDA (b)
North America				$	1,236	$	114		$	1,098	$	93
International				551		17			517		17
Truck Rental				75		(2		)	76		(5		)
Corporate and Other (c)				—		(12		)	—		(12		)
	Total Company			$	1,862	117			$	1,691	93
Less:		Non-vehicle related depreciation and amortization				41					34
		Interest expense related to corporate debt, net:
			Interest expense			56					58
			Early extinguishment of debt			—					40
		Transaction-related costs (d)				8					8
		Restructuring expense				7					10
Income (loss) before income taxes						$	5				$	(57	)

__________

^(a) Amounts reflect the Company’s realignment of its operating segments (see Note 1 - Basis of Presentation for details). As a result, previously reported amounts were recast decreasing North America revenues and increasing International revenues by $2 million in the three months ended March 31, 2013.

^(b)  Amounts reflect the revised definition of Adjusted EBITDA to exclude restructuring expense, which resulted in an increase in Adjusted EBITDA in North America, International and Truck Rental of $3 million, $3 million and $4 million, respectively, in the three months ended March 31, 2013. The realignment of the Company's operating segments had no effect on Adjusted EBITDA for the three months ended March 31, 2013.

^(c)  Includes unallocated corporate overhead which is not attributable to a particular segment.

^(d)  During the three months ended March 31, 2014, transaction-related costs primarily comprised of a non-cash charge for re-acquired license rights and acquisition integration expenses. During the three months ended March 31, 2013, transaction-related costs primarily related to the integration of Avis Europe and the acquisition of Zipcar.

Since December 31, 2013, there have been no significant changes in segment assets other than in the Company’s North America segment. As of March 31, 2014 and December 31, 2013, North America assets under vehicle programs were approximately $8.8 billion and $7.9 billion, respectively.

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15. Guarantor and Non-Guarantor Consolidating Condensed Financial Statements

The following consolidating financial information presents Consolidating Condensed Statements of Comprehensive Income for the three months ended March 31, 2014 and 2013, Consolidating Condensed Balance Sheets as of March 31, 2014 and December 31, 2013, and Consolidating Condensed Statements of Cash Flows for the three months ended March 31, 2014 and 2013 for: (i) Avis Budget Group, Inc. (the “Parent”); (ii) ABCR and Avis Budget Finance, Inc. (the “Subsidiary Issuers”); (iii) the guarantor subsidiaries; (iv) the non-guarantor subsidiaries; (v) elimination entries necessary to consolidate the Parent with the Subsidiary Issuers, and the guarantor and non-guarantor subsidiaries; and (vi) the Company on a consolidated basis. The Subsidiary Issuers and the guarantor and non-guarantor subsidiaries are 100% owned by the Parent, either directly or indirectly. All guarantees are full and unconditional and joint and several. This financial information is being presented in relation to the Company’s guarantee of the payment of principal, premium (if any) and interest on the senior notes issued by the Subsidiary Issuers. These senior notes consist of Floating rate notes due 2017, 4⅞% notes due 2017, 8¼% notes due 2019, 9¾% notes due 2020 and 5½% notes due April 2023 (collectively, the “Notes”). See Note 8—Long-term Debt and Borrowing Arrangements for additional information regarding these Notes. The Notes are guaranteed by the Parent and certain subsidiaries.

Investments in subsidiaries are accounted for using the equity method of accounting for purposes of the consolidating presentation. The principal elimination entries relate to investments in subsidiaries and intercompany balances and transactions. For purposes of the accompanying Consolidating Condensed Statements of Comprehensive Income, certain expenses incurred by the Subsidiary Issuers are allocated to the guarantor and non-guarantor subsidiaries. Certain reclassifications have been made to the 2013 consolidating condensed financial statements to report intercompany transactions on a gross basis and to conform to the current-year presentation. The reclassified amounts had no impact on reported net income, stockholders’ equity, or the net change in cash for the periods presented for the Parent, Subsidiary Issuer, Guarantor Subsidiaries, Non-Guarantor Subsidiaries, Eliminations or the Company on a consolidated basis.

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Consolidating Condensed Statements of Comprehensive Income

Three Months Ended March 31, 2014

			Parent			Subsidiary Issuers			Guarantor Subsidiaries			Non- Guarantor Subsidiaries		Eliminations			Total
Revenues
	Vehicle rental		$	—		$	—		$	916		$	413	$	—		$	1,329
	Other		—			—			267			755		(489		)	533
Net revenues			—			—			1,183			1,168		(489		)	1,862
Expenses
	Operating		—			4			604			392		—			1,000
	Vehicle depreciation and lease charges, net		—			—			441			432		(440		)	433
	Selling, general and administrative		7			4			140			97		—			248
	Vehicle interest, net		—			—			45			68		(49		)	64
	Non-vehicle related depreciation and amortization		—			—			27			14		—			41
	Interest expense related to corporate debt, net:
		Interest expense	1			47			—			8		—			56
		Intercompany interest expense (income)	(3		)	(3		)	1			5		—			—
	Transaction-related costs		—			2			3			3		—			8
	Restructuring expense		—			—			2			5		—			7
Total expenses			5			54			1,263			1,024		(489		)	1,857
Income (loss) before income taxes and equity in earnings of subsidiaries			(5		)	(54		)	(80		)	144		—			5
Provision for (benefit from) income taxes			(2		)	(21		)	18			6		—			1
Equity in earnings of subsidiaries			7			40			138			—		(185		)	—
Net income			$	4		$	7		$	40		$	138	$	(185	)	$	4
Comprehensive income			$	7		$	11		$	43		$	141	$	(195	)	$	7

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Three Months Ended March 31, 2013

			Parent			Subsidiary Issuers			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Total
Revenues
	Vehicle rental		$	—		$	—		$	837		$	380		$	—		$	1,217
	Other		—			—			246			526			(298		)	474
Net revenues			—			—			1,083			906			(298		)	1,691
Expenses
	Operating		2			1			558			370			—			931
	Vehicle depreciation and lease charges, net		—			—			260			243			(117		)	386
	Selling, general and administrative		9			1			131			83			—			224
	Vehicle interest, net		—			—			42			58			(43		)	57
	Non-vehicle related depreciation and amortization		—			—			22			12			—			34
	Interest expense related to corporate debt, net:
		Interest expense	1			54			—			3			—			58
		Intercompany interest expense (income)	(3		)	(11		)	3			11			—			—
		Early extinguishment of debt	39			1			—			—			—			40
	Restructuring expense		—			—			6			4			—			10
	Transaction-related costs		—			4			1			3			—			8
Total expenses			48			50			1,023			787			(160		)	1,748
Income (loss) before income taxes and equity in earnings of subsidiaries			(48		)	(50		)	60			119			(138		)	(57		)
Provision for (benefit from) income taxes			(4		)	(20		)	14			(1		)	—			(11		)
Equity in earnings of subsidiaries			(2		)	28			(18		)	—			(8		)	—
Net income (loss)			$	(46	)	$	(2	)	$	28		$	120		$	(146	)	$	(46	)
Comprehensive income (loss)			$	(69	)	$	(25	)	$	2		$	95		$	(72	)	$	(69	)

23

Consolidating Condensed Balance Sheets

As of March 31, 2014

		Parent		Subsidiary Issuers		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations			Total
Assets
Current assets:
	Cash and cash equivalents	$	5	$	459	$	—	$	377	$	—		$	841
	Receivables, net	—		—		183		463		—			646
	Deferred income taxes	1		—		155		23		(5		)	174
	Other current assets	3		75		93		330		—			501
Total current assets		9		534		431		1,193		(5		)	2,162
Property and equipment, net		—		104		312		197		—			613
Deferred income taxes		20		1,107		141		—		(4		)	1,264
Goodwill		—		—		339		374		—			713
Other intangibles, net		—		41		516		375		—			932
Other non-current assets		104		91		18		149		—			362
Intercompany receivables		146		—		865		626		(1,637		)	—
Investment in subsidiaries		617		2,944		3,340		—		(6,901		)	—
Total assets exclusive of assets under vehicle programs		896		4,821		5,962		2,914		(8,547		)	6,046
Assets under vehicle programs:
	Program cash	—		—		—		104		—			104
	Vehicles, net	—		7		14		10,596		—			10,617
	Receivables from vehicle manufacturers and other	—		—		—		240		—			240
	Investment in Avis Budget Rental Car Funding (AESOP) LLC-related party	—		—		—		362		—			362
		—		7		14		11,302		—			11,323
Total assets		$	896	$	4,828	$	5,976	$	14,216	$	(8,547	)	$	17,369
Liabilities and stockholders’ equity
Current liabilities:
	Accounts payable and other current liabilities	$	28	$	211	$	502	$	738	$	(5	)	$	1,474
	Short-term debt and current portion of long-term debt	66		306		3		18		—			393
Total current liabilities		94		517		505		756		(5		)	1,867
Long-term debt		—		2,660		5		638		—			3,303
Other non-current liabilities		99		93		229		423		(4		)	840
Intercompany payables		—		932		345		360		(1,637		)	—
Total liabilities exclusive of liabilities under vehicle programs		193		4,202		1,084		2,177		(1,646		)	6,010
Liabilities under vehicle programs:
	Debt	—		9		—		1,631		—			1,640
	Due to Avis Budget Rental Car Funding (AESOP) LLC-related party	—		—		—		6,359		—			6,359
Deferred income taxes		—		—		1,948		193		—			2,141
Other		—		—		—		516		—			516
		—		9		1,948		8,699		—			10,656
Total stockholders’ equity		703		617		2,944		3,340		(6,901		)	703
Total liabilities and stockholders’ equity		$	896	$	4,828	$	5,976	$	14,216	$	(8,547	)	$	17,369

24

As of December 31, 2013

		Parent		Subsidiary Issuers		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations			Total
Assets
Current assets:
	Cash and cash equivalents	$	14	$	242	$	12	$	425	$	—		$	693
	Receivables, net	—		—		150		469		—			619
	Deferred income taxes	1		—		156		21		(1		)	177
	Other current assets	4		80		82		289		—			455
Total current assets		19		322		400		1,204		(1		)	1,944
Property and equipment, net		—		109		312		193		—			614
Deferred income taxes		20		1,142		141		—		(4		)	1,299
Goodwill		—		—		342		349		—			691
Other intangibles, net		—		41		519		363		—			923
Other non-current assets		104		96		18		143		—			361
Intercompany receivables		145		210		853		331		(1,539		)	—
Investment in subsidiaries		671		2,900		3,347		—		(6,918		)	—
Total assets exclusive of assets under vehicle programs		959		4,820		5,932		2,583		(8,462		)	5,832
Assets under vehicle programs:
	Program cash	—		—		—		116		—			116
	Vehicles, net	—		10		9		9,563		—			9,582
	Receivables from vehicle manufacturers and other	—		—		—		391		—			391
	Investment in Avis Budget Rental Car Funding (AESOP) LLC-related party	—		—		—		363		—			363
		—		10		9		10,433		—			10,452
Total assets		$	959	$	4,830	$	5,941	$	13,016	$	(8,462	)	$	16,284
Liabilities and stockholders’ equity
Current liabilities:
	Accounts payable and other current liabilities	$	25	$	238	$	487	$	730	$	(1	)	$	1,479
	Short-term debt and current portion of long-term debt	65		14		3		7		—			89
Total current liabilities		90		252		490		737		(1		)	1,568
Long-term debt		—		2,955		6		344		—			3,305
Other non-current liabilities		98		96		221		436		(4		)	847
Intercompany payables		—		844		340		355		(1,539		)	—
Total liabilities exclusive of liabilities under vehicle programs		188		4,147		1,057		1,872		(1,544		)	5,720
Liabilities under vehicle programs:
	Debt	—		11		—		1,670		—			1,681
	Due to Avis Budget Rental Car Funding (AESOP) LLC-related party	—		—		—		5,656		—			5,656
	Deferred income taxes	—		—		1,984		193		—			2,177
	Other	—		1		—		278		—			279
		—		12		1,984		7,797		—			9,793
Total stockholders’ equity		771		671		2,900		3,347		(6,918		)	771
Total liabilities and stockholders’ equity		$	959	$	4,830	$	5,941	$	13,016	$	(8,462	)	$	16,284

25

Consolidating Condensed Statements of Cash Flows

Three Months Ended March 31, 2014

	Parent			Subsidiary Issuers			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
Net cash provided by (used in) operating activities	$	2		$	284		$	14		$	90		$	—		$	390
Investing activities
Property and equipment additions	—			(3		)	(17		)	(16		)	—			(36		)
Proceeds received on asset sales	—			2			—			1			—			3
Net assets acquired (net of cash acquired)	—			—			—			(124		)	—			(124		)
Other, net	57			(7		)	—			—			(57		)	(7		)
Net cash provided by (used in) investing activities exclusive of vehicle programs	57			(8		)	(17		)	(139		)	(57		)	(164		)
Vehicle programs:
Decrease in program cash	—			—			—			12			—			12
Investment in vehicles	—			(1		)	(8		)	(3,266		)	—			(3,275		)
Proceeds received on disposition of vehicles	—			3			—			2,467			—			2,470
	—			2			(8		)	(787		)	—			(793		)
Net cash provided by (used in) investing activities	57			(6		)	(25		)	(926		)	(57		)	(957		)
Financing activities
Proceeds from long-term borrowings	—			—			—			295			—			295
Payments on long-term borrowings	—			(4		)	(1		)	—			—			(5		)
Net change in short-term borrowings	—			—			—			11			—			11
Repurchases of common stock	(67		)	—			—			—			—			(67		)
Debt financing fees	—			—			—			(5		)	—			(5		)
Other, net	(1		)	(57		)	—			—			57			(1		)
Net cash provided by (used in) financing activities exclusive of vehicle programs	(68		)	(61		)	(1		)	301			57			228
Vehicle programs:
Proceeds from borrowings	—			—			—			3,775			—			3,775
Payments on borrowings	—			—			—			(3,280		)	—			(3,280		)
Debt financing fees	—			—			—			(7		)	—			(7		)
	—			—			—			488			—			488
Net cash provided by (used in) financing activities	(68		)	(61		)	(1		)	789			57			716
Effect of changes in exchange rates on cash and cash equivalents	—			—			—			(1		)	—			(1		)
Net increase (decrease) in cash and cash equivalents	(9		)	217			(12		)	(48		)	—			148
Cash and cash equivalents, beginning of period	14			242			12			425			—			693
Cash and cash equivalents, end of period	$	5		$	459		$	—		$	377		$	—		$	841

26

Three Months Ended March 31, 2013

	Parent			Subsidiary Issuers			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
Net cash provided by (used in) operating activities	$	(17	)	$	(59	)	$	(25	)	$	401		$	—		$	300
Investing activities
Property and equipment additions	—			(5		)	(10		)	(6		)	—			(21		)
Proceeds received on asset sales	—			2			—			2			—			4
Net assets acquired (net of cash acquired)	—			(513		)	16			21			—			(476		)
Intercompany loan receipts	—			70			—			—			(70		)	—
Other, net	96			(1		)	28			(1		)	(96		)	26
Net cash provided by (used in) investing activities exclusive of vehicle programs	96			(447		)	34			16			(166		)	(467		)
Vehicle programs:
Increase in program cash	—			—			—			(24		)	—			(24		)
Investment in vehicles	—			(1		)	—			(3,110		)	—			(3,111		)
Proceeds received on disposition of vehicles	—			1			—			2,393			—			2,394
	—			—			—			(741		)	—			(741		)
Net cash provided by (used in) investing activities	96			(447		)	34			(725		)	(166		)	(1,208		)
Financing activities
Proceeds from long-term borrowings	—			1,225			—			—			—			1,225
Payments on long-term borrowings	(89		)	(698		)	(1		)	—			—			(788		)
Net change in short-term borrowings	—			—			—			(31		)	—			(31		)
Purchase of warrants	(28		)	—			—			—			—			(28		)
Proceeds from sale of call options	37			—			—			—			—			37
Intercompany loan payments	—			—			—			(70		)	70			—
Debt financing fees	—			(10		)	—			—			—			(10		)
Other, net	2			(96		)	—			—			96			2
Net cash provided by (used in) financing activities exclusive of vehicle programs	(78		)	421			(1		)	(101		)	166			407
Vehicle programs:
Proceeds from borrowings	—			—			—			3,762			—			3,762
Payments on borrowings	—			—			—			(3,279		)	—			(3,279		)
Debt financing fees	—			—			—			(17		)	—			(17		)
	—			—			—			466			—			466
Net cash provided by (used in) financing activities	(78		)	421			(1		)	365			166			873
Effect of changes in exchange rates on cash and cash equivalents	—			—			—			(2		)	—			(2		)
Net increase (decrease) in cash and cash equivalents	1			(85		)	8			39			—			(37		)
Cash and cash equivalents, beginning of period	5			102			—			499			—			606
Cash and cash equivalents, end of period	$	6		$	17		$	8		$	538		$	—		$	569

27

16. Subsequent Events

In April 2014, the Company's Board of Directors authorized a $235 million increase to the Company's share repurchase program.

In April 2014, the Company used proceeds from its issuance of €200 million of additional 6% Euro-denominated Senior Notes to repurchase $292 million principal amount of its 8¼% Senior Notes. In connection with this repurchase, the Company expects to record debt extinguishment costs of approximately $26 million.

*    *    *    *

28

Item 2. Management’s Discussion and Analysis of Financial Condition andResults of Operations

The following discussion should be read in conjunction with our Consolidated Condensed FinancialStatements and accompanying Notes thereto included elsewhere herein and with our 2013 AnnualReport on Form 10-K filed with the Securities and Exchange Commission on February 20, 2014 (the “2013 Form 10-K”). Our actual results of operations may differ materially from those discussed in the forward-looking statements as a result of various factors, including but not limited to those included elsewhere in this Quarterly Report on Form 10-Q and those included in the “Risk Factors” set forth in Item 1A of our 2013 Form 10-K. Unlessotherwise noted, all dollar amounts in tables are in millions and those relating to our results of operations are presented before taxes.

OVERVIEW

Our Company

We operate three of the most recognized brands in the global vehicle rental and car sharing industry, Avis, Budget and Zipcar. We are a leading vehicle rental operator in North America, Europe, Australia, New Zealand and certain other regions we serve, with a fleet of approximately 500,000 vehicles. We also license the use of the Avis and Budget trademarks to licensees in the areas in which we do not operate directly. We and our licensees operate the Avis, Budget and/or Zipcar brands in approximately 175 countries throughout the world.

Our Segments

We categorize our operations into three reportable business segments: North America, consisting of our Avis and Budget car rental operations in the United States, our Avis and Budget vehicle rental operations in Canada, and our Zipcar car sharing operations in North America; International, consisting of our Avis and Budget vehicle rental operations in Europe, the Middle East, Africa, Asia, South America, Central America, the Caribbean, Australia and New Zealand, and our car sharing operations in certain of these markets; and Truck Rental, consisting of our Budget truck rental operations in the United States. Our segments include the financial results of Zipcar since our acquisition of such business in March 2013. In conjunction with a change in our management structure in first quarter 2014, we re-aligned components of our Zipcar operations among our business segments. Segment financial information presented below has been recast to conform with our current business segment reporting alignment for all periods presented.

Business and Trends

Our revenues are derived principally from car and truck rentals in our Company-owned operations and include:

• time and mileage (“T&M”) fees charged to our customers for vehicle rentals;

• payments from our customers with respect to certain operating expenses we incur, including gasoline and vehicle licensing fees, as well as concession fees, which we pay in exchange for the right to operate at airports and other locations;

• sales of loss damage waivers and insurance and rentals of navigation units and other items in conjunction with vehicle rentals; and

• royalty revenue from our licensees in conjunction with their vehicle rental transactions.

Our operating results are subject to variability due to seasonality, macroeconomic conditions and other factors. Car rental volumes tend to be associated with the travel industry, particularly airline passenger volumes, or enplanements, which in turn tend to reflect general economic conditions. Our vehicle rental operations are also seasonal, with the third quarter of the year historically having been our strongest due to the increased level of leisure travel during such quarter. We have a partially variable cost structure and routinely adjust the size, and therefore the cost, of our rental fleet in response to fluctuations in demand.

We believe that the following factors, among others, may affect and/or impact our financial condition and results of operations:

• worldwide enplanements;

29

• fleet, pricing, marketing and strategic decisions made by us and by our competitors;

• changes in fleet costs and in conditions in the used vehicle marketplace;

• changes in borrowing costs and in market willingness to purchase corporate and vehicle-related debt;

• our acquisitions, our integration of acquired operations and our realization of synergies, particularly with respect to Zipcar and Avis Europe;

• demand for car sharing services;

• changes in the price of gasoline;

• changes in currency exchange rates; and

• demand for truck rentals.

Thus far in 2014, we continue to operate in an uncertain and uneven economic environment. Nonetheless, we anticipate that worldwide demand for vehicle rental and car sharing services will increase in 2014, most likely against a backdrop of modest economic growth in most of the geographic markets in which we operate directly. We also expect that our access to new fleet vehicles will be adequate to meet our needs for both replacement of existing vehicles in the normal course and for growth to meet incremental demand. We will look to pursue opportunities for further pricing increases in 2014 in order to maintain our returns on invested capital and to enhance our profitability.

Our objective is to focus on strategically accelerating our growth, strengthening our global position as a leading provider of vehicle rental services, continuing to enhance our customers’ rental experience, and controlling costs and driving efficiency throughout the organization. We operate in a highly competitive industry and we expect to continue to face challenges and risks. We seek to mitigate our exposure to risks in numerous ways, including delivering upon our core strategic initiatives and through continued optimization of fleet levels to match changes in demand for vehicle rentals, maintenance of liquidity to fund our fleet and our operations, and adjustments in the size, nature and terms of our relationships with vehicle manufacturers.

Year-to-Date Highlights

In the three months ended March 31, 2014:

• Our net revenues increased 10% year-over-year to $1.9 billion in 2014.

• Pricing (our average T&M revenue per rental day) increased 2% in North America, excluding Zipcar and Payless Car Rental (“Payless”) driven by increases in both commercial and leisure pricing.

• Adjusted EBITDA increased 26% to $117 million in 2014, as a result of increased revenue (excluding acquisitions) as well as our acquisitions of Zipcar and Payless.

• We repurchased $75 million of our common stock, reducing our diluted shares outstanding by approximately 1.6 million shares.

• We acquired our Budget licensee in Edmonton, Alberta, Canada and also re-acquired the right to operate the Budget brand in Portugal.

30

RESULTS OF OPERATIONS

We measure performance using the following key operating statistics: (i) rental days, which represents the total number of days (or portion thereof) a vehicle was rented, and (ii) T&M revenue per rental day, which represents the average daily revenue we earned from rental and mileage fees charged to our customers. We also measure our ancillary revenues (rental-transaction revenue other than T&M revenue), such as from the sale of collision and loss damage waivers, insurance products and fuel service options and portable GPS navigation unit rentals. Our vehicle rental operating statistics (rental days and T&M revenue per rental day) are all calculated based on the actual rental of the vehicle during a 24-hour period. We believe that this methodology, while conservative, provides our management with the most relevant statistics in order to manage the business. Our calculation may not be comparable to other companies’ calculation of similarly-titled statistics.

We assess performance and allocate 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 our segments operate and other relevant factors. Management evaluates the operating results of each of our reportable segments based upon revenue and “Adjusted EBITDA”, which we define as income from continuing operations before non-vehicle related depreciation and amortization, any impairment charges, restructuring expense, early extinguishment of debt costs, non-vehicle related interest, transaction-related costs and income taxes. Our presentation of Adjusted EBITDA may not be comparable to similarly-titled measures used by other companies. In the first quarter of 2014, we revised our definition of Adjusted EBITDA to exclude restructuring expense and have recast our 2013 Adjusted EBITDA amounts to conform with the revised definition. For additional information regarding the impact of the change in our definition of Adjusted EBITDA, refer to Note 14 - Segment Information.

Three Months Ended March 31, 2014 vs. Three Months Ended March 31, 2013

Our consolidated results of operations comprised the following:

			Three Months Ended   March 31,
			2014		2013			Change			% Change
Revenues
	Vehicle rental		$	1,329	$	1,217		$	112		9	%
	Other		533		474			59			12	%
Net revenues			1,862		1,691			171			10	%
Expenses
	Operating		1,000		931			69			7	%
	Vehicle depreciation and lease charges, net		433		386			47			12	%
	Selling, general and administrative		248		224			24			11	%
	Vehicle interest, net		64		57			7			12	%
	Non-vehicle related depreciation and amortization		41		34			7			21	%
	Interest expense related to corporate debt, net:
		Interest expense	56		58			(2		)	(3	%)
		Early extinguishment of debt	—		40			(40		)	*
	Transaction-related costs		8		8			—			0	%
	Restructuring expense		7		10			(3		)	(30	%)
Total expenses			1,857		1,748			109			6	%
Income (loss) before income taxes			5		(57		)	62			*
Provision for (benefit from) income taxes			1		(11		)	12			*
Net income (loss)			$	4	$	(46	)	$	50		*

__________

* Not meaningful.

During first quarter 2014, our net revenues increased principally as a result of a 4% increase in total rental days (excluding Zipcar and Payless), $54 million of incremental revenue from Zipcar, $30 million of revenue from

31

Payless and a 7% increase in ancillary revenues (excluding Zipcar and Payless). Movements in currency exchange rates did not have a significant impact on revenues during first quarter 2014 compared to 2013.

Total expenses increased as a result of higher operating expenses resulting from increased volumes; higher vehicle depreciation and lease charges as a result of a 2% increase in our car rental fleet and a 6% increase in our per-unit fleet costs (excluding Zipcar and Payless); and higher selling, general and administrative costs, driven by the acquisition of Zipcar. These increases were partially offset by the decrease in debt extinguishment costs. As a result, despite a $9 million negative pretax impact from currency exchange rate movements, our net income increased by $50 million. Our effective tax rates were a provision of 20% and a benefit of 19% for the three months ended March 31, 2014 and 2013, respectively, principally due to a discrete $1 million state income tax item in 2014 and the treatment of the expenses for the early extinguishment of corporate debt in 2013.

In the three months ended March 31, 2014:

• Operating expenses decreased to 53.7% of revenue from 55.1% in first quarter 2013, driven by higher rental volumes, increased ancillary revenues and our continued cost-reduction efforts.

• Vehicle depreciation and lease charges increased to 23.2% of revenue from 22.8% in first quarter 2013, principally due to higher per-unit fleet costs in North America.

• Selling, general and administrative costs increased to 13.3% of revenue from 13.2% in first quarter 2013.

• Vehicle interest costs were 3.5% of revenue compared to 3.4% in the prior-year period.

Following is a more detailed discussion of the results of each of our reportable segments: 

				Revenues						Adjusted EBITDA
				2014		2013		% Change		2014			2013			% Change
North America				$	1,236	$	1,098	13	%	$	114		$	93		23	%
International				551		517		7	%	17			17			0	%
Truck Rental				75		76		(1	%)	(2		)	(5		)	*
Corporate and Other (a)				—		—		*		(12		)	(12		)	*
	Total Company			$	1,862	$	1,691	10	%	117			93			26	%
Less:		Non-vehicle related depreciation and amortization								41			34
		Interest expense related to corporate debt, net:
			Interest expense							56			58
			Early extinguishment of debt							—			40
		Transaction-related costs (b)								8			8
		Restructuring expense								7			10
Income (loss) before income taxes										$	5		$	(57	)

__________

* Not meaningful.

^(a)  Includes unallocated corporate overhead which is not attributable to a particular segment.

^(b)  Primarily comprised of a non-cash charge for re-acquired license rights and acquisition integration expenses.

North America

	2014		2013		% Change
Revenue	$	1,236	$	1,098	13	%
Adjusted EBITDA	114		93		23	%

Revenues increased 13% in first quarter 2014 compared with first quarter 2013, primarily due to the acquisitions of Zipcar and Payless, as well as 4% growth in rental volumes and a 2% increase in pricing (excluding Zipcar and Payless).

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Adjusted EBITDA increased 23% in first quarter 2014 compared with first quarter 2013, primarily due to the acquisitions of Zipcar and Payless as well as increased pricing and rental volumes (excluding Zipcar and Payless), partially offset by 8% higher per-unit fleet costs (excluding Zipcar and Payless).

In the three months ended March 31, 2014:

• Operating expenses were 51.2% of revenue, a decrease from 51.7% in the prior-year period, primarily due to increased pricing.

• Vehicle depreciation and lease charges increased to 24.2% of revenue from 24.0% in first quarter 2013.

• Selling, general and administrative costs decreased to 11.3% of revenue from 11.6% in the prior-year period.

• Vehicle interest costs declined to 4.1% of revenue compared to 4.2% in first quarter 2013.

International

	2014		2013		% Change
Revenue	$	551	$	517	7	%
Adjusted EBITDA	17		17		0	%

Revenues increased 7% during first quarter 2014 compared to first quarter 2013, primarily due to a 3% increase in rental volumes and an 8% increase in ancillary revenues.

Adjusted EBITDA remained level in first quarter 2014 compared to first quarter 2013, with the benefit of higher revenue offset by a $9 million negative impact from currency exchange rate changes.

In the three months ended March 31, 2014:

• Operating expenses were 57.4% of revenue, a decrease from 58.9% in the prior-year period, primarily due to increased ancillary revenues.

• Vehicle depreciation and lease charges, at 21.3% of revenue, remained level compared to first quarter 2013.

• Selling, general and administrative costs increased to 16.2% of revenue from 15.1% in the prior-year period, primarily due to the acquisition of Zipcar and increased advertising and brand investments.

• Vehicle interest costs increased to 2.1% of revenue compared to 1.6% in first quarter 2013, due to lower cash balances in 2014.

Truck Rental

	2014			2013			% Change
Revenue	$	75		$	76		(1	%)
Adjusted EBITDA	(2		)	(5		)	*

__________

* Not meaningful.

Revenues decreased $1 million due to a 3% decrease in total rental days and lower ancillary sales, largely offset by a 4% increase in pricing.

Adjusted EBITDA increased in first quarter 2014 compared with first quarter 2013, principally due to increased pricing and lower maintenance costs as we realize the benefits of our previous restructuring initiative.

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FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES

We present separately the financial data of our vehicle programs. These programs are distinct from our other activities as 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 generation or 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.

FINANCIAL CONDITION

	March 31,   2014		December 31,    2013		Change
Total assets exclusive of assets under vehicle programs	$	6,046	$	5,832	$	214
Total liabilities exclusive of liabilities under vehicle programs	6,010		5,720		290
Assets under vehicle programs	11,323		10,452		871
Liabilities under vehicle programs	10,656		9,793		863
Stockholders’ equity	703		771		(68		)

Total assets exclusive of assets under vehicle programs increased primarily due to a temporary increase in cash from the issuance of additional 6% Euro-denominated Senior Notes due 2021 (see “Liquidity and Capital Resources”).

Total liabilities exclusive of liabilities under vehicle programs increased primarily due to a temporary increase in corporate debt (see “Liquidity and Capital Resources” regarding the changes in our corporate financings).

The increases in assets under vehicle programs and liabilities under vehicle programs are principally related to the seasonal increase in the size of our vehicle rental fleet and associated funding.

The decrease in stockholders' equity is primarily due to the repurchase of our common stock.

LIQUIDITY AND CAPITAL RESOURCES

Our principal sources of liquidity are cash on hand and our ability to generate cash through operations and financing activities, as well as available funding arrangements and committed credit facilities, each of which is discussed below.

During the three months ended March 31, 2014, we issued €200 million (approximately $275 million) of additional 6% Euro-denominated Senior Notes due 2021 at 106.75% of their face value, for aggregate proceeds of approximately $295 million. Proceeds from the offering were used in April 2014 to repurchase $292 million principal amount of our 8¼% Senior Notes due 2019 for $316 million plus accrued interest. In addition, we repurchased approximately 1.6 million shares of our outstanding common stock during the three months ended March 31, 2014, and increased our borrowings under vehicle programs to fund the seasonal increase in our rental fleet.

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CASH FLOWS

The following table summarizes our cash flows:

		Three Months Ended March 31,
		2014			2013			Change
Cash provided by (used in):
	Operating activities	$	390		$	300		$	90
	Investing activities	(957		)	(1,208		)	251
	Financing activities	716			873			(157		)
Effect of exchange rate changes		(1		)	(2		)	1
Net increase (decrease) in cash and cash equivalents		148			(37		)	185
Cash and cash equivalents, beginning of period		693			606			87
Cash and cash equivalents, end of period		$	841		$	569		$	272

During the three months ended March 31, 2014, we generated $90 million more cash from operating activities compared with the same period in 2013 principally due to an increase in our net income and a decrease in our income tax payments.

The decrease in cash used in investing activities during the three months ended March 31, 2014 compared with the same period in 2013 is primarily due to the use of cash in 2013 for our acquisition of Zipcar, partially offset by the acquisition of our Budget licensee in Edmonton in 2014.

The decrease in cash provided by financing activities during the three months ended March 31, 2014 compared with the same period in 2013 is primarily due to higher corporate borrowings in 2013 to fund the acquisition of Zipcar, as well as the use of cash in 2014 to repurchase common stock.

DEBT AND FINANCING ARRANGEMENTS

At March 31, 2014, we had approximately $11.7 billion of indebtedness, including corporate indebtedness of approximately $3.7 billion and debt under vehicle programs of approximately $8.0 billion.

Corporate indebtedness consisted of:

		As of		As of
	Maturity Dates	March 31,		December 31,
		2014		2013
3½% Convertible Notes (a)	October 2014	$	66	$	66
4⅞% Senior Notes	November 2017	300		300
Floating Rate Senior Notes (b)	December 2017	247		247
8¼% Senior Notes (c)	January 2019	691		691
Floating Rate Term Loan (d)	March 2019	988		989
9¾% Senior Notes	March 2020	223		223
6% Euro-denominated Senior Notes	March 2021	638		344
5½% Senior Notes	April 2023	500		500
		3,653		3,360
Other		43		34
Total		$	3,696	$	3,394

__________

^(a)  As of March 31, 2014, the 3½% convertible notes are convertible by the holders into approximately 4 million shares of the Company’s common stock.

^(b)  The interest rate on these notes is equal to three-month LIBOR plus 275 basis points, for an aggregate rate of 3.00% at March 31, 2014; the Company has entered into an interest rate swap to hedge its interest rate exposure related to these notes at an aggregate rate of 3.58%.

^(c)  As of March 31, 2014, the Company called $292 million of the 8¼% Senior Notes due 2019 for redemption; accordingly, these are included in current portion of long-term debt.

^(d)  The floating rate term loan is part of the Company’s senior credit facility, which is secured by pledges of capital stock of certain subsidiaries of the Company, and liens on substantially all of the Company’s intellectual property and certain other real and personal property. As of March 31, 2014, the floating term rate loan due 2019 bears interest at the greater of three-month LIBOR or 0.75%, plus 225 basis points, for an aggregate rate of 3.00%. The Company has entered into a swap to hedge $600 million of its interest rate exposure related to the floating rate term loan at an aggregate rate of 3.96%.

35

The following table summarizes the components of our debt under vehicle programs, including related party debt due to Avis Budget Rental Car Funding (AESOP) LLC (“Avis Budget Rental Car Funding”):

	As of		As of
	March 31,		December 31,
	2014		2013
North America - Debt due to Avis Budget Rental Car Funding (a)	$	6,359	$	5,656
North America - Canadian borrowings (a)( b)	482		400
International - Debt borrowings (c)	584		731
International - Capital leases (a)	353		289
Truck Rental - Debt borrowings	211		226
Other	10		35
Total	$	7,999	$	7,337

__________

^(a)  The increase reflects additional borrowings principally to fund an increase in the Company’s fleet driven by increased rental volume.

^(b)  The increase reflects additional borrowings principally to fund an increase in the Company’s fleet driven by the acquisition of its Budget licensee for Edmonton.

^(c)  The decrease is principally related to the timing of borrowings related to recently acquired fleet.

As of March 31, 2014, the committed corporate credit facilities available to us and/or our subsidiaries included: 

	Total Capacity		Outstanding Borrowings		Letters of Credit Issued		Available Capacity
Revolving credit facility maturing 2018 (a)	$	1,650	$	—	$	638	$	1,012
Other facilities (b)	13		1		—		12

 __________

^(a)  The senior revolving credit facility bears interest at one-month LIBOR, plus 225 basis points. The senior revolving credit facility is part of the Company’s senior credit facility, which is secured by pledges of capital stock of certain subsidiaries of the Company, and liens on substantially all of the Company’s intellectual property and certain other real and personal property.

^(b)  These facilities encompass bank overdraft lines of credit, bearing interest of 5.14% to 5.69% as of March 31, 2014.

The following table presents available funding under our debt arrangements related to our vehicle programs at March 31, 2014:

	Total Capacity (a)		Outstanding Borrowings		Available Capacity
North America - Debt due to Avis Budget Rental Car Funding (b)	$	8,544	$	6,359	$	2,185
North America - Canadian borrowings (c)	724		482		242
International - Debt borrowings (d)	1,511		584		927
International - Capital leases (e)	468		353		115
Truck Rental - Debt borrowings (f)	230		211		19
Other	10		10		—
Total	$	11,487	$	7,999	$	3,488

__________

^(a)  Capacity is subject to maintaining sufficient assets to collateralize debt.

^(b)  The outstanding debt is collateralized by approximately $8.1 billion of underlying vehicles and related assets.

^(c)  The outstanding debt is collateralized by $604 million of underlying vehicles and related assets.

^(d)  The outstanding debt is collateralized by approximately $1.0 billion of underlying vehicles and related assets.

^(e)  The outstanding debt is collateralized by $387 million of underlying vehicles and related assets.

^(f)  The outstanding debt is collateralized by $351 million of underlying vehicles and related assets.

LIQUIDITY RISK

Our primary liquidity needs include the payment of operating expenses, servicing of corporate and vehicle related debt and procurement of rental vehicles to be used in our operations. The present intention of management is to reinvest the undistributed earnings of our foreign subsidiaries indefinitely into our foreign operations. We do not anticipate the need to repatriate foreign earnings to the United States to service corporate debt or for other U.S. needs. Our primary sources of funding are operating revenue, cash received upon the sale of vehicles, borrowings under our vehicle-backed borrowing arrangements and our senior revolving credit facility, and other financing activities.

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As discussed above, as of March 31, 2014, we have cash and cash equivalents of $841 million, available borrowing capacity under our committed credit facilities of $1.0 billion and available capacity under our vehicle programs of approximately $3.5 billion. In April 2014, we repurchased $292 million principal amount of our 8¼% Senior Notes for $316 million plus accrued interest and obtained Board approval to expand our $200 million share repurchase authorization by $235 million. We intend to fund share repurchases under the program with our cash flow from operations.

Our liquidity position could be negatively affected by financial market disruptions or a downturn in the U.S. and worldwide economies, which may result in unfavorable conditions in the vehicle rental industry, in the asset-backed financing market, and in the credit markets generally. We believe these factors have in the past affected and could in the future affect the debt ratings assigned to us by credit rating agencies and the cost of our borrowings. Additionally, a downturn in the worldwide economy or a disruption in the credit markets could impact our liquidity due to (i) decreased demand and pricing for vehicles in the used-vehicle market, (ii) increased costs associated with, and/or reduced capacity or increased collateral needs under, our financings, (iii) the adverse impact of vehicle manufacturers, including Ford, General Motors, Chrysler, Peugeot, Volkswagen, Kia, Fiat, Subaru, BMW and Toyota being unable or unwilling to honor their obligations to repurchase or guarantee the depreciation on the related program vehicles, (iv) disruption in our ability to obtain financing due to negative credit events specific to us or affecting the overall debt market and (v) the effect of Realogy or Wyndham being unable or unwilling to honor its respective obligations under the agreements governing their disposition.

Our liquidity position could also be negatively impacted if we are unable to remain in compliance with the financial and other covenants associated with our senior credit facility and other borrowings including a maximum leverage ratio. As of March 31, 2014, we were in compliance with the financial covenants in our senior credit facility. For additional information regarding our liquidity risks, see Part I, Item 1A, “Risk Factors” of our 2013 Form 10-K.

CONTRACTUAL OBLIGATIONS

Our future contractual obligations have not changed significantly from the amounts reported within our 2013 Form 10-K with the exception of our commitment to purchase vehicles, which decreased by approximately $810 million from December 31, 2013, to approximately $5.6 billion at March 31, 2014. Changes to our obligations related to corporate indebtedness and debt under vehicle programs are presented above within the section titled “Liquidity and Capital Resources—Debt and Financing Arrangements” and also within Notes 8 and 9 to our Consolidated Condensed Financial Statements.

ACCOUNTING POLICIES

The results of the majority of our recurring operations are recorded in our financial statements using accounting policies that are not particularly subjective, nor complex. However, in presenting our financial statements in conformity with generally accepted accounting principles, we are required to make estimates and assumptions that affect the amounts reported therein. Several of the estimates and assumptions that we are required to make pertain to matters that are inherently uncertain as they relate to future events. Presented within the section titled “Critical Accounting Policies” of our 2013 Form 10-K are the accounting policies (related to goodwill and other indefinite-lived intangible assets, business combinations, vehicles, income taxes and public liability, property damage and other insurance liabilities) that we believe require subjective and/or complex judgments that could potentially affect 2014 reported results. There have been no significant changes to those accounting policies or our assessment of which accounting policies we would consider to be critical accounting policies.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

We are exposed to a variety of market risks, including changes in currency exchange rates, interest rates and gasoline prices.

We manage our exposure to market risks through our regular operating and financing activities and, when deemed appropriate, through the use of derivative financial instruments, particularly swap contracts, futures and options contracts, to manage and reduce the interest rate risk related to our debt; foreign currency forward contracts to manage and reduce currency exchange-rate risk; and derivative commodity instruments to manage and reduce the risk of changing unleaded gasoline prices.

37

We are exclusively an end user of these instruments. We do not engage in trading, market-making or other speculative activities in the derivatives markets. We manage our exposure to counterparty credit risk related to our use of derivatives through specific minimum credit standards, diversification of counterparties, and procedures to monitor concentrations of credit risk. Our counterparties are substantial investment and commercial banks with significant experience providing such derivative instruments.

Our total market risk is influenced by a wide variety of factors including the volatility present within the markets and the liquidity of the markets. There are certain limitations inherent in the sensitivity analyses presented below. These “shock tests” are constrained by several factors, including the necessity to conduct the analysis based on a single point in time and the inability to include the complex market reactions that normally would arise from the market shifts modeled. For additional information regarding our long-term borrowings and financial instruments, see Notes 8, 9 and 13 to our Consolidated Condensed Financial Statements.

Currency Risk Management

We have currency exchange rate exposure to exchange rate fluctuations worldwide and particularly with respect to the Australian, Canadian and New Zealand dollars, the Euro and the British pound sterling. We use currency forward contracts and currency swaps to manage exchange rate risk that arises from certain intercompany transactions, and from non-functional currency denominated assets and liabilities and earnings denominated in non-U.S. dollar currencies. Our foreign currency forward contracts are often not designated as hedges and therefore changes in the fair value of these derivatives are recognized in earnings as they occur. We anticipate that such currency exchange rate risk will remain a market risk exposure for the foreseeable future.

We assess our market risk based on changes in currency exchange rates utilizing a sensitivity analysis. Based on our currency forward contracts as of March 31, 2014, we estimate that a 10% change in currency exchange rates would not have a material impact on our earnings. Because gains or losses related to currency forward contracts are expected to be offset by corresponding gains or losses on the underlying exposures being hedged, when combined, these currency forward contracts and the underlying exposures do not create a material impact to our results of operations, balance sheet or liquidity.

Interest Rate Risk Management

Our primary interest rate exposure at March 31, 2014, was interest rate fluctuations in the United States, specifically LIBOR and commercial paper interest rates due to their impact on variable rate borrowings and other interest rate sensitive liabilities. We use interest rate swaps and caps to manage our exposure to interest rate movements. We anticipate that LIBOR and commercial paper rates will remain a primary market risk exposure for the foreseeable future.

We assess our market risk based on changes in interest rates utilizing a sensitivity analysis. Based on our interest rate derivatives as of March 31, 2014, we estimate that a 10% change in interest rates would not have a material impact on our earnings. Because gains or losses related to interest rate derivatives are expected to be offset by corresponding gains or losses on the underlying exposures being hedged, when combined, these interest rate contracts and the offsetting underlying commitments do not create a material impact to our results of operations, balance sheet or liquidity.

Commodity Risk Management

We have commodity price exposure related to fluctuations in the price of unleaded gasoline. We anticipate that such commodity risk will remain a market risk exposure for the foreseeable future. We determined that a hypothetical 10% change in the price of unleaded gasoline would not have a material impact on our earnings for the period ended March 31, 2014.

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Item 4. Controls and Procedures

(a) Disclosure Controls and Procedures. Under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, our management conducted an evaluation of the effectiveness of our disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)). Based on such evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures were effective as of the period ended March 31, 2014.

(b) Changes in Internal Control Over Financial Reporting. During the fiscal quarter to which this report relates, there has been no change in the Company’s internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

PART II – OTHER INFORMATION

Item 1. Legal Proceedings.

For the quarter ended March 31, 2014, the Company had no material developments to report with respect to its legal proceedings. For additional information regarding the Company’s legal proceedings, please refer to the Company’s 2013 Annual Report on Form 10-K.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

The following is a summary of Avis Budget Group’s common stock repurchases by month for the quarter ended March 31, 2014:

	Total Number of Shares Purchased	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs
January 1-31, 2014	216,809	$	39.86	216,809	$	140,912,111
February 1-28, 2014	259,980	42.74		259,980	129,800,643
March 1-31, 2014	1,157,910	47.71		1,157,910	74,555,037
Total	1,634,699	$	45.88	1,634,699	$	74,555,037

In August 2013, the Company obtained Board approval to repurchase up to $200 million of its common stock. In April 2014, the Company's Board of Directors authorized a $235 million increase to the share repurchase program. The Company's stock repurchases may occur through open market purchases or trading plans pursuant to Rule 10b5-1 of the Securities Exchange Act of 1934. The amount and timing of specific repurchases are subject to market conditions, applicable legal requirements and other factors. The repurchase program may be suspended, modified or discontinued at any time without prior notice. The repurchase program has no set expiration or termination date.

Item 6. Exhibits

See Exhibit Index.

39

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	AVIS BUDGET GROUP, INC.
Date: May 8, 2014
	/s/ David B. Wyshner
	David B. Wyshner
	Senior Executive Vice President and
	Chief Financial Officer
Date: May 8, 2014
	/s/ Izilda P. Martins
	Izilda P. Martins
	Senior Vice President and
	Acting Chief Accounting Officer

40

Exhibit Index

Exhibit No.	Description
10.1	Fifth Global Amendment dated as of February 27, 2014, among Aviscar Inc., Budgetcar Inc., Zipcar Canada, Inc., WTH Car Rental ULC, WTH Funding Limited Partnership, BNY Trust Company Of Canada as Indenture Trustee, Bay Street Funding Trust, Canadian Master Trust, Plaza Trust and Avis Budget Car Rental, LLC (Incorporated by reference to Exhibit 10.105 to the Company’s Registration Statement on Form S-4 dated March 28, 2014).
10.2	Amended and Restated Employment Agreement between Avis Budget Group, Inc. and Ronald L. Nelson (Incorporated by referenced to Exhibit 10.1 to the Company's Current Report on Form 8-K dated April 22, 2014).
12	Statement re: Computation of Ratio of Earnings to Fixed Charges.
31.1	Certification of Chief Executive Officer pursuant to Rules 13(a)-14(a) and 15(d)-14(a) promulgated under the Securities Exchange Act of 1934, as amended.
31.2	Certification of Chief Financial Officer pursuant to Rules 13(a)-14(a) and 15(d)-14(a) promulgated under the Securities Exchange Act of 1934, as amended.
32	Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS	XBRL Instance Document.
101.SCH	XBRL Taxonomy Extension Schema.
101.CAL	XBRL Taxonomy Extension Calculation Linkbase.
101.DEF	XBRL Taxonomy Extension Definition Linkbase.
101.LAB	XBRL Taxonomy Extension Label Linkbase.
101.PRE	XBRL Taxonomy Extension Presentation Linkbase.

41

EX-12

Exhibit 12

Avis Budget Group, Inc.

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(Dollars in millions)

	Three Months Ended   March 31,
	2014			2013
Earnings available to cover fixed charges:
Income (loss) from continuing operations before income taxes	5			(57		)
Plus: Fixed charges	147			143
Earnings available to cover fixed charges	$	152		$	86
Fixed charges (a):
Interest, including amortization of deferred financing costs	$	122		$	119
Interest portion of rental payment	25			24
Total fixed charges	$	147		$	143
Ratio of earnings to fixed charges(b)	1.03		x	-

__________

^(a) Consists of interest expense on all indebtedness (including amortization of deferred financing costs) and the portion of operating lease rental expense that is representative of the interest factor. Interest expense on all indebtedness is detailed as follows:

	Three Months Ended   March 31,
	2014		2013
Related to debt under vehicle programs	$	66	$	61
All other	56		58
	$	122	$	119

^(b) Earnings were not sufficient to cover fixed charges for the three months ended March 31, 2013 by $57 million.

EX-31.1

Exhibit 31.1

SECTION 302 CERTIFICATION

I, Ronald L. Nelson, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Avis Budget Group, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 8, 2014

/s/  Ronald L. Nelson

Chief Executive Officer

EX-31.2

Exhibit 31.2

SECTION 302 CERTIFICATION

I, David B. Wyshner, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Avis Budget Group, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 8, 2014

/s/   David B. Wyshner

Senior Executive Vice President and 

Chief Financial Officer

EX-32

Exhibit 32

CERTIFICATION OF CEO AND CFO PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Avis Budget Group, Inc. (the “Company”) on Form 10-Q for the period ended March 31, 2014, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), Ronald L. Nelson, as Chief Executive Officer of the Company, and David B. Wyshner, as Chief Financial Officer of the Company, each hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of his knowledge:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Ronald L. Nelson

Ronald L. Nelson

Chief Executive Officer

May 8, 2014

/s/ David B. Wyshner

David B. Wyshner

Senior Executive Vice President and

Chief Financial Officer

May 8, 2014

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Acquisitions (Narrative) (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		3 Months Ended			3 Months Ended	1 Months Ended	12 Months Ended	1 Months Ended	3 Months Ended	12 Months Ended
	Mar. 31, 2014	Dec. 31, 2013	Mar. 31, 2014 Edmonton [Member]	Mar. 31, 2014 Customer Relationships [Member]	Mar. 31, 2014 License Agreement Terms [Member]	Mar. 31, 2014 Portugal [Member]	Mar. 31, 2013 Zipcar [Member]	Dec. 31, 2013 Zipcar [Member]	Aug. 31, 2013 Brazil [Member]	Mar. 31, 2014 Brazil [Member]	Dec. 31, 2013 Brazil [Member]
Business Acquisition, Equity Interests Issued or Issuable [Line Items]
Date of acquisition			Feb. 01, 2014			Feb. 01, 2014		Mar. 14, 2013			Aug. 12, 2013
Business Combination, Consideration Transferred			$ 33			$ 9	$ 473
Business Acquisition Purchase Price Allocation Vehicles Net	86
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill	17			11	6	2
Goodwill	713	691	9			13
Other intangibles, useful life, in years	12 years 0 months 0 days		4 years 0 months 0 days			2 years 0 months 0 days
Indefinite-Lived License Agreements			3
Business Combination, Consideration Transferred, Other						15
Equity Method Investment, Ownership Percentage										50.00%
Payments to Acquire Equity Method Investments									$ 53	$ 6

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Debt Under Vehicle Programs And Borrowing Arrangements (Schedule Of Debt Under Vehicle Programs) (Detail) (USD $) In Millions, unless otherwise specified	Mar. 31, 2014		Dec. 31, 2013
Debt Under Vehicle Programs And Borrowing Arrangements [Line Items]
Debt under vehicle programs	$ 7,999		$ 7,337
Debt Due To Avis Budget Rental Car Funding (Member)
Debt Under Vehicle Programs And Borrowing Arrangements [Line Items]
Debt under vehicle programs	6,359	[1]	5,656	[1]
Canada Debt Borrowings [Member] [Domain]
Debt Under Vehicle Programs And Borrowing Arrangements [Line Items]
Debt under vehicle programs	482	[1],[2]	400	[1],[2]
International Debt Borrowings [Domain]
Debt Under Vehicle Programs And Borrowing Arrangements [Line Items]
Debt under vehicle programs	584	[3]	731	[3]
International Capital Leases [Domain]
Debt Under Vehicle Programs And Borrowing Arrangements [Line Items]
Debt under vehicle programs	353	[1]	289	[1]
Budget Truck Financing (Member)
Debt Under Vehicle Programs And Borrowing Arrangements [Line Items]
Debt under vehicle programs	211		226
Other (Member)
Debt Under Vehicle Programs And Borrowing Arrangements [Line Items]
Debt under vehicle programs	$ 10		$ 35

[1] The increase reflects additional borrowings principally to fund an increase in the Company’s fleet driven by increased rental volume.

[2] The increase reflects additional borrowings principally to fund an increase in the Company’s fleet driven by the acquisition of its Budget licensee for Edmonton.

[3] The decrease is principally related to the timing of borrowings related to recently acquired fleet.

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Income Taxes (Narrative) (Detail)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Income Tax Disclosure [Abstract]
Effective tax provision (benefit) rate	20.00%	(19.30%)
Federal statutory rate	35.00%	35.00%

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Subsequent Events (Narrative) (Detail) (USD $) In Millions, unless otherwise specified	0 Months Ended	1 Months Ended	3 Months Ended
	Aug. 06, 2013	Apr. 30, 2014	Mar. 31, 2014	Mar. 31, 2013
Subsequent Event [Line Items]
Stock Repurchase Program, Authorized Amount	$ 200	$ 235
Early extinguishment of debt		26	0	40
Eight And One Over Four Senior Notes [Member] | Senior Notes [Member]
Subsequent Event [Line Items]
Debt Instrument, Repurchased Face Amount			292
Eight And One Over Four Senior Notes [Member] | Subsequent Event [Member] | Senior Notes [Member]
Subsequent Event [Line Items]
Debt Instrument, Repurchased Face Amount		$ 292

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Debt Under Vehicle Programs And Borrowing Arrangements (Schedule Of Contractual Maturities) (Detail) (USD $) In Millions, unless otherwise specified	Mar. 31, 2014
Debt Under Vehicle Programs And Borrowing Arrangements [Line Items]
Vehicle Program Debt Amount Outstanding	$ 7,999
Vehicle backed debt [Member]
Debt Under Vehicle Programs And Borrowing Arrangements [Line Items]
Within 1 year	1,131	[1]
Between 1 and 2 years	2,218
Between 2 and 3 years	1,571
Between 3 and 4 years	902
Between 4 and 5 years	1,601
Thereafter	576
Vehicle Program Debt Amount Outstanding	7,999
Asset-Backed Securities, at Carrying Value	952
Bank-sponsored borrowings	$ 179

[1] Vehicle-backed debt maturing within one year includes term asset-backed securities of approximately $952 million and bank and bank-sponsored borrowings of $179 million.

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Vehicle Rental Activities (Components Of The Company's Vehicles) (Detail) (USD $) In Millions, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013	Mar. 31, 2013
Vehicle Rental Activities [Abstract]
Rental vehicles	$ 11,657	$ 10,234
Less: Accumulated depreciation	(1,388)	(1,411)
Rental Vehicles Net, Total	10,269	8,823
Vehicles held for sale	348	759
Vehicles, net	10,617	9,582
Accounts Payable, Other, Current	498		496
Receivables due from former subsidiaries	$ 231		$ 285

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Basis Of Presentation And Recently Issued Accounting Pronouncements (Narrative) (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Basis Of Presentation And Recently Issued Accounting Pronouncements [Abstract]
Net unrealized gain or loss on foreign-currency transactions of intercompany loan hedges	$ (2)	$ (4)

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Commitments And Contingencies (Narrative) (Detail) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Schedule Of Commitments And Contingencies [Line Items]
Percentage of payment on defaulting party's obligation on assumed liabilities	50.00%
Purchase obligation over the next twelve months	$ 5,600,000,000
Aggregate purchase obligations	154,000,000
Receivables due from former subsidiaries	231,000,000	285,000,000
Realogy [Member]
Schedule Of Commitments And Contingencies [Line Items]
Percentage of assumption of contingent and other corporate liabilities	62.50%
Receivables due from former subsidiaries	61,000,000
Wyndham [Member]
Schedule Of Commitments And Contingencies [Line Items]
Percentage of assumption of contingent and other corporate liabilities	37.50%
Receivables due from former subsidiaries	37,000,000
Realogy, Wyndham And Travelport [Member] | Real Estate Leases [Member]
Schedule Of Commitments And Contingencies [Line Items]
Maximum potential amount of future payments under guarantees	47,000,000
Liability recorded in connection with guarantees	$ 1,000,000

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Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2014

Investments, All Other Investments [Abstract]

Schedule of Notional Amounts of Outstanding Derivative Positions

The Company held derivative instruments with absolute notional values as follows:

	As of
	March 31, 2014
Interest rate caps (a)	$	11,981
Interest rate swaps	1,503
Foreign exchange swaps	548
Foreign exchange forward contracts	400
Commodity contracts (millions of gallons of unleaded gasoline)	7

__________

^(a)  Represents $9.7 billion of interest rate caps sold, partially offset by approximately $2.3 billion of interest rate caps purchased. These amounts exclude $7.5 billion of interest rate caps purchased by the Company’s Avis Budget Rental Car Funding subsidiary.

Fair Value Of Derivative Instruments

Fair values (Level 2) of derivative instruments were as follows: 

		As of March 31, 2014				As of December 31, 2013
		Fair Value, Asset Derivatives		Fair Value, Liability Derivatives		Fair Value, Asset Derivatives		Fair Value, Liability Derivatives
Derivatives designated as hedging instruments
	Interest rate swaps (a)	$	3	$	—	$	2	$	1
Derivatives not designated as hedging instruments
	Interest rate caps (b)	1		9		2		13
	Interest rate swaps	—		—		—		—
	Foreign exchange swaps and forward contracts (c)	3		13		3		5
	Commodity contracts	—		—		—		—
	Total	$	7	$	22	$	7	$	19

__________

Amounts in this table exclude derivatives issued by Avis Budget Rental Car Funding, as it is not consolidated by the Company; however, certain amounts related to the derivatives held by Avis Budget Rental Car Funding are included within accumulated other comprehensive income, as discussed in Note 11—Stockholders’ Equity.

^(a)  Included in other non-current assets or other non-current liabilities.

^(b)  Included in assets under vehicle programs or liabilities under vehicle programs.

^(c)  Included in other current assets or other current liabilities.

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Long-Term Debt And Borrowing Arrangements (Schedule Of Long-Term Debt) (Parenthetical) (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2014
Floating Rate Notes [Member]
Debt Instrument [Line Items]
Basis spread over variable rate	3.58%
Floating Rate Term Loan Due May Two Thousand Sixteen [Member]
Debt Instrument [Line Items]
Basis spread over variable rate	3.27%
Floating Rate Term Loan Due March Two Thousand Nineteen [Member]
Debt Instrument [Line Items]
Basis spread over variable rate	3.96%
Floating rate	0.75%
Senior Notes [Member] | 8 1/4% Notes [Member]
Debt Instrument [Line Items]
Debt Instrument, Repurchased Face Amount	$ 292
Loans Payable [Member] | Floating Rate Term Loan Due March Two Thousand Nineteen [Member]
Debt Instrument [Line Items]
Derivative, Amount of Hedged Item	$ 600

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Financial Instruments (Schedule Of Carrying Amounts And Estimated Fair Values) (Detail) (USD $) In Millions, unless otherwise specified	Mar. 31, 2014		Dec. 31, 2013
Debt Instrument [Line Items]
Short-term debt and current portion of long-term debt	$ 393		$ 89
Carrying (Reported) Amount, Fair Value Disclosure [Member]
Debt Instrument [Line Items]
Short-term debt and current portion of long-term debt	327		23
Long Term Debt Excluding Convertible Debt	3,303		3,305
Convertible debt	66		66
Debt Due To Avis Budget Rental Car Funding Aesop Llc Related Party	6,359		5,656
Vehicle-backed debt	1,631		1,668
Debt Under Vehicle Programs Interest Rate Swaps And Interest Rate Contracts	9	[1]	13	[1]
Estimate Of Fair Value, Fair Value Disclosure [Member]
Debt Instrument [Line Items]
Short-term debt and current portion of long-term debt	348		23
Long Term Debt Excluding Convertible Debt	3,397		3,416
Convertible debt	197		159
Debt Due To Avis Budget Rental Car Funding Aesop Llc Related Party	6,493		5,732
Vehicle-backed debt	1,640		1,675
Debt Under Vehicle Programs Interest Rate Swaps And Interest Rate Contracts	$ 9	[1]	$ 13	[1]

[1] Derivatives in a liability position.

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Earnings Per Share (Outstanding Common Stock Equivalents That Were Anti-Dilutive) (Detail) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2013
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive shares	3.4
Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive shares	1.5
Warrants [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive shares	4.7

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Long-Term Debt And Borrowing Arrangements (Schedule Of Committed Credit Facilities) (Detail) (USD $) In Millions, unless otherwise specified	Mar. 31, 2014
Revolving Credit Facility Maturing Two Thousand Sixteen [Member]
Line of Credit Facility [Line Items]
Total Capacity	$ 1,650	[1]
Outstanding Borrowings	0	[1]
Letters of Credit Issued	638	[1]
Available Capacity	1,012	[1]
Other Facilities [Member]
Line of Credit Facility [Line Items]
Total Capacity	13	[2]
Outstanding Borrowings	1	[2]
Letters of Credit Issued	0	[2]
Available Capacity	$ 12	[2]

[1] The senior revolving credit facility bears interest at one-month LIBOR, plus 225 basis points. The senior revolving credit facility is part of the Company’s senior credit facility, which is secured by pledges of capital stock of certain subsidiaries of the Company, and liens on substantially all of the Company’s intellectual property and certain other real and personal property.

[2] These facilities encompass bank overdraft lines of credit, bearing interest of 5.14% to 5.69% as of March 31, 2014.

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Guarantor And Non-Guarantor Consolidating Condensed Financial Statements (Consolidating Condensed Statements Of Comprehensive Income) (Detail) (USD $) In Millions, unless otherwise specified	1 Months Ended	3 Months Ended
	Apr. 30, 2014	Mar. 31, 2014		Mar. 31, 2013
Revenues
Vehicle rental		$ 1,329		$ 1,217
Other		533		474
Net revenues		1,862		1,691
Expenses
Operating		1,000		931
Vehicle depreciation and lease charges, net		433		386
Selling, general and administrative		248		224
Vehicle interest, net		64		57
Non-vehicle related depreciation and amortization		41		34
Interest expense		56		58
Intercompany Interest Expense Income		0		0
Early extinguishment of debt	26	0		40
Transaction-related costs		8		8
Total expenses		1,857		1,748
Interest expense related to corporate debt, net:
Income (loss) before income taxes		5		(57)
Provision for (benefit from) income taxes		(1)		11
Equity in earnings (loss) of subsidiaries		0		0
Net income (loss)		4		(46)
Comprehensive income (loss)		(7)		69
Restructuring Charges		7	[1]	10	[2]
Parent Company [Member]
Revenues
Vehicle rental		0		0
Other		0		0
Net revenues		0		0
Expenses
Operating		0		2
Vehicle depreciation and lease charges, net		0		0
Selling, general and administrative		7		9
Vehicle interest, net		0		0
Non-vehicle related depreciation and amortization		0		0
Interest expense		1		1
Intercompany Interest Expense Income		(3)		(3)
Early extinguishment of debt				39
Transaction-related costs		0		0
Total expenses		5		48
Interest expense related to corporate debt, net:
Income (loss) before income taxes		(5)		(48)
Provision for (benefit from) income taxes		2		4
Equity in earnings (loss) of subsidiaries		7		(2)
Net income (loss)		4		(46)
Restructuring Charges		0		0
Subsidiary Issuers [Member]
Revenues
Vehicle rental		0		0
Other		0		0
Net revenues		0		0
Expenses
Operating		4		1
Vehicle depreciation and lease charges, net		0		0
Selling, general and administrative		4		1
Vehicle interest, net		0		0
Non-vehicle related depreciation and amortization		0		0
Interest expense		47		54
Intercompany Interest Expense Income		(3)		(11)
Early extinguishment of debt				1
Transaction-related costs		2		4
Total expenses		54		50
Interest expense related to corporate debt, net:
Income (loss) before income taxes		(54)		(50)
Provision for (benefit from) income taxes		21		20
Equity in earnings (loss) of subsidiaries		40		28
Net income (loss)		7		(2)
Comprehensive income (loss)		(11)		25
Restructuring Charges		0		0
Guarantor Subsidiaries [Member]
Revenues
Vehicle rental		916		837
Other		267		246
Net revenues		1,183		1,083
Expenses
Operating		604		558
Vehicle depreciation and lease charges, net		441		260
Selling, general and administrative		140		131
Vehicle interest, net		45		42
Non-vehicle related depreciation and amortization		27		22
Interest expense		0		0
Intercompany Interest Expense Income		1		3
Early extinguishment of debt				0
Transaction-related costs		3		1
Total expenses		1,263		1,023
Interest expense related to corporate debt, net:
Income (loss) before income taxes		(80)		60
Provision for (benefit from) income taxes		(18)		(14)
Equity in earnings (loss) of subsidiaries		138		(18)
Net income (loss)		40		28
Comprehensive income (loss)		(43)		(2)
Restructuring Charges		2		6
Non-Guarantor Subsidiaries [Member]
Revenues
Vehicle rental		413		380
Other		755		526
Net revenues		1,168		906
Expenses
Operating		392		370
Vehicle depreciation and lease charges, net		432		243
Selling, general and administrative		97		83
Vehicle interest, net		68		58
Non-vehicle related depreciation and amortization		14		12
Interest expense		8		3
Intercompany Interest Expense Income		5		11
Early extinguishment of debt				0
Transaction-related costs		3		3
Total expenses		1,024		787
Interest expense related to corporate debt, net:
Income (loss) before income taxes		144		119
Provision for (benefit from) income taxes		(6)		1
Equity in earnings (loss) of subsidiaries		0		0
Net income (loss)		138		120
Comprehensive income (loss)		(141)		(95)
Restructuring Charges		5		4
Eliminations [Member]
Revenues
Vehicle rental		0		0
Other		(489)		(298)
Net revenues		(489)		(298)
Expenses
Operating		0		0
Vehicle depreciation and lease charges, net		(440)		(117)
Selling, general and administrative		0		0
Vehicle interest, net		(49)		(43)
Non-vehicle related depreciation and amortization		0		0
Interest expense		0		0
Intercompany Interest Expense Income		0		0
Early extinguishment of debt				0
Transaction-related costs		0		0
Total expenses		(489)		(160)
Interest expense related to corporate debt, net:
Income (loss) before income taxes		0		(138)
Provision for (benefit from) income taxes		0		0
Equity in earnings (loss) of subsidiaries		(185)		(8)
Net income (loss)		(185)		(146)
Comprehensive income (loss)		195		72
Restructuring Charges		$ 0		$ 0

[1] (d) During the three months ended March 31, 2014, transaction-related costs primarily comprised of a non-cash charge for re-acquired license rights and acquisition integration expenses. During the three months ended March 31, 2013, transaction-related costs primarily related to the integration of Avis Europe and the acquisition of Zipcar.

[2] (c) Includes unallocated corporate overhead which is not attributable to a particular segment.

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Stock-Based Compensation (Narrative) (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 8	$ 4
Stock-based compensation expense (net of tax)	5	3
Adjustments to Additional Paid in Capital, Income Tax Benefit from Share-based Compensation		57
Employee service share based compensation incremental tax benefit to be realized from exercise of stock awards	$ 22

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Vehicle Rental Activities (Components Of Vehicle Depreciation And Lease Charges) (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Vehicle Rental Activities [Abstract]
Depreciation expense	$ 407	$ 353
Lease charges	37	33
Gain on sales of vehicles, net	(11)	0
Vehicle depreciation and lease charges, net	433	386
Cost of Services, Depreciation	$ 433	$ 386

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Acquisitions

3 Months Ended

Mar. 31, 2014

Business Combinations [Abstract]

Acquisitions

Acquisitions

Edmonton

In February 2014, the Company completed the acquisition of its Budget licensee for Edmonton and certain other cities in Alberta for approximately $33 million, plus $86 million for acquired fleet. The investment will enable the Company to expand its footprint of Company-operated locations in Canada. The acquired fleet was financed under the Company's existing vehicle financing arrangements in Canada. The excess of the purchase price over preliminary fair value of net assets acquired was allocated to goodwill, which was assigned to the Company’s North America segment and most of which is expected to be deductible for tax purposes. The fair value of the assets acquired and liabilities assumed has not yet been finalized and is therefore subject to change. In connection with this acquisition, approximately $17 million was recorded in identifiable intangible assets (consisting of $11 million related to customer relationships and $6 million related to the reacquired license agreements) and $9 million was recorded in goodwill. The customer relationships will be amortized over a weighted average useful life of approximately 12 years and the license agreements will be amortized over approximately 4 years. In addition, at the time of the acquisition, the Company recorded a $3 million non-cash charge related to the unfavorable license rights reacquired by the Company.

Portugal

In February 2014, the Company reacquired the right to operate the Budget brand in Portugal for approximately $15 million. Approximately $9 million of the total consideration was paid during first quarter 2014 and the remainder is expected to be paid in 2014. The fair value of the intangible assets acquired has not yet been finalized and is therefore subject to change. In connection with this acquisition, approximately $2 million was recorded within license agreements and $13 million was recorded in goodwill. The license agreements will be amortized over 2 years. The goodwill, which was assigned to the Company’s International segment, is expected to be deductible for tax purposes.

Brazil

In August 2013, the Company acquired a 50% ownership stake in its Brazilian licensee for $53 million, of which the remaining consideration of $6 million was paid during first quarter 2014.

Zipcar

In March 2013, the Company completed the acquisition of the entire issued share capital of Zipcar, the leading car sharing company, for $473 million, net of acquired cash. Differences between the preliminary allocation of the purchase price and the final allocation were not material.

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Stock-Based Compensation (Summary Of Share Based Payment Other Than Options Valuation Assumptions) (Detail)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Expected volatility of stock price	39.60%	43.00%
Risk-free interest rate	0.85%	0.39%
Expected term of awards	P3Y0M0D	P3Y0M0D
Dividend yield	0.00%	0.00%

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Financial Instruments (Narrative) (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2014		Mar. 31, 2013
Schedule of Cost-method Investments [Line Items]
Interest Rate Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months, Net	$ 6
Cash posted as collateral for derivatives in a liability position	1
Derivative Instruments, Gain (Loss) Recognized in Income, Net	(17)	[1]	6	[1]
Interest Rate Caps [Member]
Schedule of Cost-method Investments [Line Items]
Absolute notional values of derivative instruments	11,981	[2]
Interest Rate Caps [Member] | Interest Rate Caps Purchased [Member]
Schedule of Cost-method Investments [Line Items]
Absolute notional values of derivative instruments	2,300
Interest Rate Caps [Member] | Interest Rate Caps Purchased [Member] | Subsidiary Issuers [Member]
Schedule of Cost-method Investments [Line Items]
Absolute notional values of derivative instruments	7,500
Interest Rate Caps [Member] | Interest Rate Caps Sold [Member]
Schedule of Cost-method Investments [Line Items]
Absolute notional values of derivative instruments	9,700
Interest Rate Swaps [Member]
Schedule of Cost-method Investments [Line Items]
Absolute notional values of derivative instruments	1,503
Commodity Contracts [Member]
Schedule of Cost-method Investments [Line Items]
Units Of Gasoline	7,000,000
Currency Swap [Member]
Schedule of Cost-method Investments [Line Items]
Absolute notional values of derivative instruments	548
Not Designated As Hedging Instruments [Member] | Commodity Contracts [Member]
Schedule of Cost-method Investments [Line Items]
Derivative Instruments, Gain (Loss) Recognized in Income, Net	0	[3]	2	[3]
Operating Expense [Member]
Schedule of Cost-method Investments [Line Items]
Derivative Instruments, Gain (Loss) Recognized in Income, Net	$ 4		$ 2

[1] Gains (losses) related to derivative instruments are expected to be largely offset by (losses) gains on the underlying exposures being hedged.

[2] Represents $9.7 billion of interest rate caps sold, partially offset by approximately $2.3 billion of interest rate caps purchased. These amounts exclude $7.5 billion of interest rate caps purchased by the Company’s Avis Budget Rental Car Funding subsidiary.

[3] Included in operating expenses.

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Stockholders' Equity (Tables)

3 Months Ended

Mar. 31, 2014

Equity [Abstract]

Accumulated Other Comprehensive Income

The components of accumulated other comprehensive income were as follows: 

	Currency Translation Adjustments			Net Unrealized Gains on Cash Flow Hedges		Net Unrealized Gains (Losses) on Available-for Sale Securities			Minimum Pension Liability Adjustment			Accumulated Other Comprehensive Income
Balance, January 1, 2014	$	166		$	1	$	2		$	(52	)	$	117
Net current-period other comprehensive income (a)	3			1		(1		)	—			3
Balance, March 31, 2014	$	169		$	2	$	1		$	(52	)	$	120
Balance, January 1, 2013	$	193		$	—	$	2		$	(85	)	$	110
Net current-period other comprehensive loss (a)	(23		)	—		—			—			(23		)
Balance, March 31, 2013	$	170		$	—	$	2		$	(85	)	$	87

__________

All components of accumulated other comprehensive income are net of tax, except currency translation adjustments, which exclude income taxes related to indefinite investments in foreign subsidiaries and include $11 million loss, net of tax, related to the Company's hedge of its net investment in Euro-denominated foreign operations (See Note 13 - Financial Instruments).

^(a)  For the periods ended March 31, 2014 and 2013, amounts reclassified from accumulated other comprehensive income were not material.

Components Of Other Comprehensive Income

The components of other comprehensive income were as follows: 

		Three Months Ended   March 31,
		2014			2013
Net income (loss)		$	4		$	(46	)
Other comprehensive income (loss):
	Currency translation adjustments	3			(23		)
	Net unrealized loss on available-for-sale securities	(1		)	—
	Net unrealized gain on cash flow hedges (a)	1			—
		3			(23		)
Total comprehensive income (loss)		$	7		$	(69	)

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Debt Under Vehicle Programs and Borrowing Arrangements (Tables)

3 Months Ended

Mar. 31, 2014

Debt Disclosure [Abstract]

Schedule Of Debt Under Vehicle Programs

Debt under vehicle programs including related party debt due to Avis Budget Rental Car Funding (AESOP) LLC (“Avis Budget Rental Car Funding”), consisted of:

	As of		As of
	March 31,		December 31,
	2014		2013
North America - Debt due to Avis Budget Rental Car Funding (a)	$	6,359	$	5,656
North America - Canadian borrowings (a)(b)	482		400
International - Debt borrowings (c)	584		731
International - Capital leases (a)	353		289
Truck Rental - Debt borrowings	211		226
Other	10		35
Total	$	7,999	$	7,337

__________

^(a)  The increase reflects additional borrowings principally to fund an increase in the Company’s fleet driven by increased rental volume.

^(b)  The increase reflects additional borrowings principally to fund an increase in the Company’s fleet driven by the acquisition of its Budget licensee for Edmonton.

^(c)  The decrease is principally related to the timing of

Schedule Of Contractual Maturities

The following table provides the contractual maturities of the Company’s debt under vehicle programs, including related party debt due to Avis Budget Rental Car Funding at March 31, 2014.

	Debt Under Vehicle Programs
Within 1 year (a)	$	1,131
Between 1 and 2 years	2,218
Between 2 and 3 years	1,571
Between 3 and 4 years	902
Between 4 and 5 years	1,601
Thereafter	576
Total	$	7,999

 __________

^(a)  Vehicle-backed debt maturing within one year includes term asset-backed securities of approximately $952 million and bank and bank-sponsored borrowings of $179 million.

Schedule Of Available Funding Under The Vehicle Programs

As of March 31, 2014, available funding under the Company’s vehicle programs (including related party debt due to Avis Budget Rental Car Funding) consisted of:

	Total Capacity (a)		Outstanding Borrowings		Available Capacity
North America - Debt due to Avis Budget Rental Car Funding (b)	$	8,544	$	6,359	$	2,185
North America - Canadian borrowings (c)	724		482		242
International - Debt borrowings (d)	1,511		584		927
International - Capital leases (e)	468		353		115
Truck Rental - Debt borrowings (f)	230		211		19
Other	10		10		—
Total	$	11,487	$	7,999	$	3,488

__________

^(a)  Capacity is subject to maintaining sufficient assets to collateralize debt.

^(b)  The outstanding debt is collateralized by approximately $8.1 billion of underlying vehicles and related assets.

^(c)  The outstanding debt is collateralized by $604 million of underlying vehicles and related assets.

^(d)  The outstanding debt is collateralized by approximately $1.0 billion of underlying vehicles and related assets.

^(e)  The outstanding debt is collateralized by $387 million of underlying vehicles and related assets.

^(f)  The outstanding debt is collateralized by $351 million of underlying vehicles and related assets.

XML

Debt Under Vehicle Programs And Borrowing Arrangements (Schedule Of Available Funding Under The Vehicle Programs) (Detail) (USD $) In Millions, unless otherwise specified	Mar. 31, 2014
Debt Under Vehicle Programs And Borrowing Arrangements [Line Items]
Total Capacity	$ 11,487	[1]
Outstanding Borrowings	7,999
Available Capacity	3,488
Debt Due To Avis Budget Rental Car Funding (Member)
Debt Under Vehicle Programs And Borrowing Arrangements [Line Items]
Total Capacity	8,544	[1],[2]
Outstanding Borrowings	6,359	[2]
Available Capacity	2,185	[2]
Leasing vehicles and related assets, pledged as collateralized debt	8,100
Canada Debt Borrowings [Member] [Domain]
Debt Under Vehicle Programs And Borrowing Arrangements [Line Items]
Total Capacity	724	[1],[3]
Outstanding Borrowings	482	[3]
Available Capacity	242	[3]
Leasing vehicles and related assets, pledged as collateralized debt	604
International Debt Borrowings [Domain]
Debt Under Vehicle Programs And Borrowing Arrangements [Line Items]
Total Capacity	1,511	[1],[4]
Outstanding Borrowings	584	[4]
Available Capacity	927	[4]
Leasing vehicles and related assets, pledged as collateralized debt	1,000
International Capital Leases [Domain]
Debt Under Vehicle Programs And Borrowing Arrangements [Line Items]
Total Capacity	468	[1],[5]
Outstanding Borrowings	353	[5]
Available Capacity	115	[5]
Budget Truck Financing (Member)
Debt Under Vehicle Programs And Borrowing Arrangements [Line Items]
Total Capacity	230	[1],[6]
Outstanding Borrowings	211	[6]
Available Capacity	19	[6]
Leasing vehicles and related assets, pledged as collateralized debt	387
European Rental Fleet Securitization [Member]
Debt Under Vehicle Programs And Borrowing Arrangements [Line Items]
Leasing vehicles and related assets, pledged as collateralized debt	351
Other (Member)
Debt Under Vehicle Programs And Borrowing Arrangements [Line Items]
Total Capacity	10	[1]
Outstanding Borrowings	10
Available Capacity	$ 0

[1] Capacity is subject to maintaining sufficient assets to collateralize debt.

[2] The outstanding debt is collateralized by approximately $8.1 billion of underlying vehicles and related assets.

[3] The outstanding debt is collateralized by $604 million of underlying vehicles and related assets.

[4] The outstanding debt is collateralized by approximately $1.0 billion of underlying vehicles and related assets.

[5] The outstanding debt is collateralized by $387 million of underlying vehicles and related assets.

[6] The outstanding debt is collateralized by $351 million of underlying vehicles and related assets.

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Financial Instruments (Fair Values Of Derivatives Instruments) (Detail) (USD $) In Millions, unless otherwise specified	Mar. 31, 2014		Dec. 31, 2013
Schedule of Cost-method Investments [Line Items]
Fair Value, Asset Derivatives	$ 7		$ 7
Fair Value, Liability Derivatives	22		19
Designated As Hedging Instruments [Member] | Interest Rate Swaps [Member]
Schedule of Cost-method Investments [Line Items]
Fair Value, Asset Derivatives	3	[1]	2	[1]
Fair Value, Liability Derivatives	0	[1]	1	[1]
Not Designated As Hedging Instruments [Member] | Interest Rate Swaps [Member]
Schedule of Cost-method Investments [Line Items]
Fair Value, Asset Derivatives	0		0
Fair Value, Liability Derivatives	0		0
Not Designated As Hedging Instruments [Member] | Foreign Exchange Contract [Member]
Schedule of Cost-method Investments [Line Items]
Fair Value, Asset Derivatives	3	[2]	3	[2]
Fair Value, Liability Derivatives	13	[2]	5	[2]
Not Designated As Hedging Instruments [Member] | Interest Rate Contracts [Member]
Schedule of Cost-method Investments [Line Items]
Fair Value, Asset Derivatives	1	[3]	2	[3]
Fair Value, Liability Derivatives	9	[3]	13	[3]
Not Designated As Hedging Instruments [Member] | Commodity Contracts [Member]
Schedule of Cost-method Investments [Line Items]
Fair Value, Asset Derivatives	0		0
Fair Value, Liability Derivatives	$ 0		$ 0

[1] Included in other non-current assets or other non-current liabilities.

[2] Included in other current assets or other current liabilities.

[3] Included in assets under vehicle programs or liabilities under vehicle programs.

XML

Stock-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Summary Of Share Based Payment Other Than Options Valuation Assumptions

	Three Months Ended   March 31,
	2014	2013
Expected volatility of stock price	40%	43%
Risk-free interest rate	0.85%	0.39%
Expected term of awards	3 years	3 years
Dividend yield	0.0%	0.0%

Stock Based Compensation Activity

The activity related to the Company’s restricted stock units (“RSUs”) and cash units, consisted of (in thousands of shares):

		Time-Based RSUs				Performance-Based and Market-Based RSUs				Cash Unit Awards
		Number of Shares		Weighted Average Grant Date Fair Value		Number of Shares		Weighted Average Grant Date Fair Value		Number of Units	Weighted Average Grant Date Fair Value
Outstanding at January 1, 2014 (a)		1,308		$	17.92	2,043		$	13.79	267	$	14.90
	Granted	352		41.15		235		39.37		—	—
	Vested (b)	(588	)	16.62		(432	)	10.91		—	—
	Forfeited/expired	(56	)	23.49		(32	)	21.48		—	—
Outstanding at March 31, 2014 (c)		1,016		$	26.40	1,814		$	17.66	267	$	14.90

__________

^(a)  Reflects the maximum number of stock units assuming achievement of all performance-, market- and time-vesting criteria and does not include those for non-employee directors. The weighted-average fair value of time-based RSUs, performance-based and market-based RSUs, and cash units granted in 2013 was $21.20, $20.30 and $17.14, respectively.

^(b)  The total grant date fair value of RSUs vested during the three months ended March 31, 2014 and 2013 was $14 million and $14 million, respectively.

^(c)  The Company’s outstanding time-based RSUs, performance-based and market-based RSUs, and cash units had aggregate intrinsic value of $49 million, $88 million and $13 million, respectively. Aggregate unrecognized compensation expense related to time-based RSUs and performance-based and market-based RSUs amounted to $43 million and will be recognized over a weighted average vesting period of 1.3 years. The Company assumes that substantially all outstanding awards will vest over time.

Summary Of Share Based Compensation Shares Authorized Under Stock Option Plans By Exercise Price Range

The stock option activity consisted of (in thousands of shares): 

		Number of Options		Weighted Average Exercise Price		Aggregate Intrinsic Value (in millions)		Weighted Average Remaining Contractual Term (years)
Outstanding at January 1, 2014		979		$	2.82	$	37	5.2
	Granted	—		—		—
	Exercised	(87	)	2.22		4
	Forfeited/expired	—		—		—
Outstanding at March 31, 2014 (a)		892		2.88		41		5.0
Exercisable at March 31, 2014		860		$	2.56	$	40	5.0

__________ 

^(a)  The Company assumes that substantially all outstanding stock options will vest over time.

XML

Segment Information (Tables)

3 Months Ended

Mar. 31, 2014

Segment Reporting [Abstract]

Summary Of Segments Information

				Three Months Ended March 31,
				2014					2013
				Revenues		Adjusted EBITDA			Revenues (a)		Adjusted EBITDA (b)
North America				$	1,236	$	114		$	1,098	$	93
International				551		17			517		17
Truck Rental				75		(2		)	76		(5		)
Corporate and Other (c)				—		(12		)	—		(12		)
	Total Company			$	1,862	117			$	1,691	93
Less:		Non-vehicle related depreciation and amortization				41					34
		Interest expense related to corporate debt, net:
			Interest expense			56					58
			Early extinguishment of debt			—					40
		Transaction-related costs (d)				8					8
		Restructuring expense				7					10
Income (loss) before income taxes						$	5				$	(57	)

__________

^(a) Amounts reflect the Company’s realignment of its operating segments (see Note 1 - Basis of Presentation for details). As a result, previously reported amounts were recast decreasing North America revenues and increasing International revenues by $2 million in the three months ended March 31, 2013.

^(b)  Amounts reflect the revised definition of Adjusted EBITDA to exclude restructuring expense, which resulted in an increase in Adjusted EBITDA in North America, International and Truck Rental of $3 million, $3 million and $4 million, respectively, in the three months ended March 31, 2013. The realignment of the Company's operating segments had no effect on Adjusted EBITDA for the three months ended March 31, 2013.

^(c)  Includes unallocated corporate overhead which is not attributable to a particular segment.

^(d)  During the three months ended March 31, 2014, transaction-related costs primarily comprised of a non-cash charge for re-acquired license rights and acquisition integration expenses. During the three months ended March 31, 2013, transaction-related costs primarily related to the integration of Avis Europe and the acquisition of Zipcar.

XML

Earnings Per Share Earnings Per Share (Notes)

3 Months Ended

Mar. 31, 2014

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share (“EPS”) (shares in millions): 

		Three Months Ended   March 31,
		2014		2013
Net income (loss) for basic and diluted EPS		$	4	$	(46	)
Basic weighted average shares outstanding		106.6		107.7
Options, warrants and non-vested stock (a) (b)		2.0		—
Convertible debt (c) (d)		—		—
Diluted weighted average shares outstanding		108.6		107.7
Earnings per share:
	Basic	$	0.03	$	(0.43	)
	Diluted	$	0.03	$	(0.43	)

__________

^(a)  For the three months ended March 31, 2014, the number of anti-dilutive securities which were excluded from the computation of diluted earnings per share was not significant.

^(b)  As the Company incurred a net loss for the three months ended March 31, 2013, 1.5 million outstanding options, 4.7 million warrants and 3.4 million non-vested stock awards have an anti-dilutive effect and therefore are excluded from the computation of diluted weighted average shares outstanding.

^(c)  For the three months ended March 31, 2014, 4.0 million issuable shares underlying the 3½% convertible notes due 2014 have an anti-dilutive effect and therefore are excluded from the computation of diluted weighted average shares outstanding.

^(d)  For the three months ended March 31, 2013, 4.7 million issuable shares underlying the 3½% convertible notes due 2014 have an anti-dilutive effect and therefore are excluded from the computation of diluted weighted average shares outstanding.

XML

Guarantor and Non-Guarantor Consolidating Condensed Financial Statements (Tables)

3 Months Ended

Mar. 31, 2014

Mar. 31, 2013

Dec. 31, 2013

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Consolidating Condensed Statements of Comprehensive Income

Consolidating Condensed Statements of Comprehensive Income

Three Months Ended March 31, 2014

			Parent			Subsidiary Issuers			Guarantor Subsidiaries			Non- Guarantor Subsidiaries		Eliminations			Total
Revenues
	Vehicle rental		$	—		$	—		$	916		$	413	$	—		$	1,329
	Other		—			—			267			755		(489		)	533
Net revenues			—			—			1,183			1,168		(489		)	1,862
Expenses
	Operating		—			4			604			392		—			1,000
	Vehicle depreciation and lease charges, net		—			—			441			432		(440		)	433
	Selling, general and administrative		7			4			140			97		—			248
	Vehicle interest, net		—			—			45			68		(49		)	64
	Non-vehicle related depreciation and amortization		—			—			27			14		—			41
	Interest expense related to corporate debt, net:
		Interest expense	1			47			—			8		—			56
		Intercompany interest expense (income)	(3		)	(3		)	1			5		—			—
	Transaction-related costs		—			2			3			3		—			8
	Restructuring expense		—			—			2			5		—			7
Total expenses			5			54			1,263			1,024		(489		)	1,857
Income (loss) before income taxes and equity in earnings of subsidiaries			(5		)	(54		)	(80		)	144		—			5
Provision for (benefit from) income taxes			(2		)	(21		)	18			6		—			1
Equity in earnings of subsidiaries			7			40			138			—		(185		)	—
Net income			$	4		$	7		$	40		$	138	$	(185	)	$	4
Comprehensive income			$	7		$	11		$	43		$	141	$	(195	)	$	7

			Parent			Subsidiary Issuers			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Total
Revenues
	Vehicle rental		$	—		$	—		$	837		$	380		$	—		$	1,217
	Other		—			—			246			526			(298		)	474
Net revenues			—			—			1,083			906			(298		)	1,691
Expenses
	Operating		2			1			558			370			—			931
	Vehicle depreciation and lease charges, net		—			—			260			243			(117		)	386
	Selling, general and administrative		9			1			131			83			—			224
	Vehicle interest, net		—			—			42			58			(43		)	57
	Non-vehicle related depreciation and amortization		—			—			22			12			—			34
	Interest expense related to corporate debt, net:
		Interest expense	1			54			—			3			—			58
		Intercompany interest expense (income)	(3		)	(11		)	3			11			—			—
		Early extinguishment of debt	39			1			—			—			—			40
	Restructuring expense		—			—			6			4			—			10
	Transaction-related costs		—			4			1			3			—			8
Total expenses			48			50			1,023			787			(160		)	1,748
Income (loss) before income taxes and equity in earnings of subsidiaries			(48		)	(50		)	60			119			(138		)	(57		)
Provision for (benefit from) income taxes			(4		)	(20		)	14			(1		)	—			(11		)
Equity in earnings of subsidiaries			(2		)	28			(18		)	—			(8		)	—
Net income (loss)			$	(46	)	$	(2	)	$	28		$	120		$	(146	)	$	(46	)
Comprehensive income (loss)			$	(69	)	$	(25	)	$	2		$	95		$	(72	)	$	(69	)

Schedule Of Condensed Consolidating Balance Sheet Table [Text Block]

Consolidating Condensed Balance Sheets

As of March 31, 2014

		Parent		Subsidiary Issuers		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations			Total
Assets
Current assets:
	Cash and cash equivalents	$	5	$	459	$	—	$	377	$	—		$	841
	Receivables, net	—		—		183		463		—			646
	Deferred income taxes	1		—		155		23		(5		)	174
	Other current assets	3		75		93		330		—			501
Total current assets		9		534		431		1,193		(5		)	2,162
Property and equipment, net		—		104		312		197		—			613
Deferred income taxes		20		1,107		141		—		(4		)	1,264
Goodwill		—		—		339		374		—			713
Other intangibles, net		—		41		516		375		—			932
Other non-current assets		104		91		18		149		—			362
Intercompany receivables		146		—		865		626		(1,637		)	—
Investment in subsidiaries		617		2,944		3,340		—		(6,901		)	—
Total assets exclusive of assets under vehicle programs		896		4,821		5,962		2,914		(8,547		)	6,046
Assets under vehicle programs:
	Program cash	—		—		—		104		—			104
	Vehicles, net	—		7		14		10,596		—			10,617
	Receivables from vehicle manufacturers and other	—		—		—		240		—			240
	Investment in Avis Budget Rental Car Funding (AESOP) LLC-related party	—		—		—		362		—			362
		—		7		14		11,302		—			11,323
Total assets		$	896	$	4,828	$	5,976	$	14,216	$	(8,547	)	$	17,369
Liabilities and stockholders’ equity
Current liabilities:
	Accounts payable and other current liabilities	$	28	$	211	$	502	$	738	$	(5	)	$	1,474
	Short-term debt and current portion of long-term debt	66		306		3		18		—			393
Total current liabilities		94		517		505		756		(5		)	1,867
Long-term debt		—		2,660		5		638		—			3,303
Other non-current liabilities		99		93		229		423		(4		)	840
Intercompany payables		—		932		345		360		(1,637		)	—
Total liabilities exclusive of liabilities under vehicle programs		193		4,202		1,084		2,177		(1,646		)	6,010
Liabilities under vehicle programs:
	Debt	—		9		—		1,631		—			1,640
	Due to Avis Budget Rental Car Funding (AESOP) LLC-related party	—		—		—		6,359		—			6,359
Deferred income taxes		—		—		1,948		193		—			2,141
Other		—		—		—		516		—			516
		—		9		1,948		8,699		—			10,656
Total stockholders’ equity		703		617		2,944		3,340		(6,901		)	703
Total liabilities and stockholders’ equity		$	896	$	4,828	$	5,976	$	14,216	$	(8,547	)	$	17,369

		Parent		Subsidiary Issuers		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations			Total
Assets
Current assets:
	Cash and cash equivalents	$	14	$	242	$	12	$	425	$	—		$	693
	Receivables, net	—		—		150		469		—			619
	Deferred income taxes	1		—		156		21		(1		)	177
	Other current assets	4		80		82		289		—			455
Total current assets		19		322		400		1,204		(1		)	1,944
Property and equipment, net		—		109		312		193		—			614
Deferred income taxes		20		1,142		141		—		(4		)	1,299
Goodwill		—		—		342		349		—			691
Other intangibles, net		—		41		519		363		—			923
Other non-current assets		104		96		18		143		—			361
Intercompany receivables		145		210		853		331		(1,539		)	—
Investment in subsidiaries		671		2,900		3,347		—		(6,918		)	—
Total assets exclusive of assets under vehicle programs		959		4,820		5,932		2,583		(8,462		)	5,832
Assets under vehicle programs:
	Program cash	—		—		—		116		—			116
	Vehicles, net	—		10		9		9,563		—			9,582
	Receivables from vehicle manufacturers and other	—		—		—		391		—			391
	Investment in Avis Budget Rental Car Funding (AESOP) LLC-related party	—		—		—		363		—			363
		—		10		9		10,433		—			10,452
Total assets		$	959	$	4,830	$	5,941	$	13,016	$	(8,462	)	$	16,284
Liabilities and stockholders’ equity
Current liabilities:
	Accounts payable and other current liabilities	$	25	$	238	$	487	$	730	$	(1	)	$	1,479
	Short-term debt and current portion of long-term debt	65		14		3		7		—			89
Total current liabilities		90		252		490		737		(1		)	1,568
Long-term debt		—		2,955		6		344		—			3,305
Other non-current liabilities		98		96		221		436		(4		)	847
Intercompany payables		—		844		340		355		(1,539		)	—
Total liabilities exclusive of liabilities under vehicle programs		188		4,147		1,057		1,872		(1,544		)	5,720
Liabilities under vehicle programs:
	Debt	—		11		—		1,670		—			1,681
	Due to Avis Budget Rental Car Funding (AESOP) LLC-related party	—		—		—		5,656		—			5,656
	Deferred income taxes	—		—		1,984		193		—			2,177
	Other	—		1		—		278		—			279
		—		12		1,984		7,797		—			9,793
Total stockholders’ equity		771		671		2,900		3,347		(6,918		)	771
Total liabilities and stockholders’ equity		$	959	$	4,830	$	5,941	$	13,016	$	(8,462	)	$	16,284

Consolidating Condensed Statements Of Cash Flows

	Parent			Subsidiary Issuers			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
Net cash provided by (used in) operating activities	$	2		$	284		$	14		$	90		$	—		$	390
Investing activities
Property and equipment additions	—			(3		)	(17		)	(16		)	—			(36		)
Proceeds received on asset sales	—			2			—			1			—			3
Net assets acquired (net of cash acquired)	—			—			—			(124		)	—			(124		)
Other, net	57			(7		)	—			—			(57		)	(7		)
Net cash provided by (used in) investing activities exclusive of vehicle programs	57			(8		)	(17		)	(139		)	(57		)	(164		)
Vehicle programs:
Decrease in program cash	—			—			—			12			—			12
Investment in vehicles	—			(1		)	(8		)	(3,266		)	—			(3,275		)
Proceeds received on disposition of vehicles	—			3			—			2,467			—			2,470
	—			2			(8		)	(787		)	—			(793		)
Net cash provided by (used in) investing activities	57			(6		)	(25		)	(926		)	(57		)	(957		)
Financing activities
Proceeds from long-term borrowings	—			—			—			295			—			295
Payments on long-term borrowings	—			(4		)	(1		)	—			—			(5		)
Net change in short-term borrowings	—			—			—			11			—			11
Repurchases of common stock	(67		)	—			—			—			—			(67		)
Debt financing fees	—			—			—			(5		)	—			(5		)
Other, net	(1		)	(57		)	—			—			57			(1		)
Net cash provided by (used in) financing activities exclusive of vehicle programs	(68		)	(61		)	(1		)	301			57			228
Vehicle programs:
Proceeds from borrowings	—			—			—			3,775			—			3,775
Payments on borrowings	—			—			—			(3,280		)	—			(3,280		)
Debt financing fees	—			—			—			(7		)	—			(7		)
	—			—			—			488			—			488
Net cash provided by (used in) financing activities	(68		)	(61		)	(1		)	789			57			716
Effect of changes in exchange rates on cash and cash equivalents	—			—			—			(1		)	—			(1		)
Net increase (decrease) in cash and cash equivalents	(9		)	217			(12		)	(48		)	—			148
Cash and cash equivalents, beginning of period	14			242			12			425			—			693
Cash and cash equivalents, end of period	$	5		$	459		$	—		$	377		$	—		$	841

XML

Intangible Assets (Schedule Of Intangible Assets) (Detail) (USD $) In Millions, unless otherwise specified	Mar. 31, 2014		Dec. 31, 2013
Finite And Indefinite Lived Intangible Assets [Line Items]
Amortized Intangible Assets, Gross Carrying Amount	$ 459		$ 440
Amortized Intangible Assets, Accumulated Amortization	95		88
Amortized Intangible Assets, Net Carrying Amount	364		352
Unamortized Intangible Assets, Goodwill, Gross Carrying Amount	713		691
License Agreements [Member]
Finite And Indefinite Lived Intangible Assets [Line Items]
Amortized Intangible Assets, Gross Carrying Amount	280	[1],[2]	272	[1],[2]
Amortized Intangible Assets, Accumulated Amortization	55	[1],[2]	52	[1],[2]
Amortized Intangible Assets, Net Carrying Amount	225	[1],[2]	220	[1],[2]
Customer Relationships [Member]
Finite And Indefinite Lived Intangible Assets [Line Items]
Amortized Intangible Assets, Gross Carrying Amount	177	[1]	166	[1]
Amortized Intangible Assets, Accumulated Amortization	39	[1]	35	[1]
Amortized Intangible Assets, Net Carrying Amount	138	[1]	131	[1]
Other Intangible Assets [Member]
Finite And Indefinite Lived Intangible Assets [Line Items]
Amortized Intangible Assets, Gross Carrying Amount	2		2
Amortized Intangible Assets, Accumulated Amortization	1		1
Amortized Intangible Assets, Net Carrying Amount	1		1
Goodwill [Member]
Finite And Indefinite Lived Intangible Assets [Line Items]
Unamortized Intangible Assets, Goodwill, Gross Carrying Amount	713	[1],[2]	691	[1],[2]
Trademarks [Member]
Finite And Indefinite Lived Intangible Assets [Line Items]
Unamortized Intangible Assets, Trademarks, Gross Carrying Amount	$ 568	[1]	$ 571	[1]

[1] The increases in carrying amounts reflect the acquisition of the Budget licensee for Edmonton.

[2] The increases in carrying amounts reflect the reacquired right to operate the Budget brand in Portugal.

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Long-Term Debt And Borrowing Arrangements (Schedule Of Committed Credit Facilities) (Parenthetical) (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2014
Line of Credit Facility [Line Items]
Amounts drawn under uncommitted credit facilities	$ 16
Minimum [Member] | Bank Overdraft [Member]
Line of Credit Facility [Line Items]
Credit facilities bearing interest	5.14%
Minimum [Member] | Uncommitted Credit Facility [Member]
Line of Credit Facility [Line Items]
Credit facilities bearing interest	0.52%
Maximum [Member] | Bank Overdraft [Member]
Line of Credit Facility [Line Items]
Credit facilities bearing interest	5.69%
Maximum [Member] | Uncommitted Credit Facility [Member]
Line of Credit Facility [Line Items]
Credit facilities bearing interest	2.50%

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CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (USD $) In Millions, except Per Share data, unless otherwise specified	1 Months Ended	3 Months Ended
	Apr. 30, 2014	Mar. 31, 2014		Mar. 31, 2013
Income Statement [Abstract]
Vehicle Depreciation And Lease Charges Net		$ 433		$ 386
Revenues
Vehicle rental		1,329		1,217
Other		533		474
Net revenues		1,862		1,691
Expenses
Operating		1,000		931
Vehicle depreciation and lease charges, net		433		386
Selling, general and administrative		248		224
Vehicle interest, net		64		57
Non-vehicle related depreciation and amortization		41		34
Interest expense related to corporate debt, net:
Interest expense		56		58
Early extinguishment of debt	26	0		40
Transaction-related costs		8		8
Restructuring expense		7	[1]	10	[2]
Total expenses		1,857		1,748
Income (loss) before income taxes		5		(57)
Provision for (benefit from) income taxes		1		(11)
Net income (loss)		4		(46)
Comprehensive income (loss)		$ 7		$ (69)
Earnings (loss) per share
Basic (US$ per share)		$ 0.03		$ (0.43)
Diluted (US$ per share)		$ 0.03		$ (0.43)

[1] (d) During the three months ended March 31, 2014, transaction-related costs primarily comprised of a non-cash charge for re-acquired license rights and acquisition integration expenses. During the three months ended March 31, 2013, transaction-related costs primarily related to the integration of Avis Europe and the acquisition of Zipcar.

[2] (c) Includes unallocated corporate overhead which is not attributable to a particular segment.

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Financial Instruments (Schedule Of Effect Of Derivatives Recognized) (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2014		Mar. 31, 2013		Dec. 31, 2013
Schedule of Cost-method Investments [Line Items]
Long-term Debt, Current Maturities	$ 393				$ 89
Derivatives not designated as hedging instruments	(17)	[1]	6	[1]
Interest Rate Swaps [Member]
Schedule of Cost-method Investments [Line Items]
Derivative, Notional Amount	1,503
Foreign Exchange Contracts [Member]
Schedule of Cost-method Investments [Line Items]
Derivative, Notional Amount	400
Designated As Hedging Instruments [Member] | Interest Rate Swaps [Member]
Schedule of Cost-method Investments [Line Items]
Interest rate swaps	1	[2]	0	[2]
Not Designated As Hedging Instruments [Member] | Foreign Exchange Contracts [Member]
Schedule of Cost-method Investments [Line Items]
Derivatives not designated as hedging instruments	(18)	[3]	1	[3]
Not Designated As Hedging Instruments [Member] | Commodity Contracts [Member]
Schedule of Cost-method Investments [Line Items]
Derivatives not designated as hedging instruments	0	[4]	2	[4]
Not Designated As Hedging Instruments [Member] | Interest Rate Contracts [Member]
Schedule of Cost-method Investments [Line Items]
Derivatives not designated as hedging instruments	0	[5]	3	[5]
Operating Expense [Member]
Schedule of Cost-method Investments [Line Items]
Derivatives not designated as hedging instruments	4		2
Foreign Exchange Contract [Member]
Schedule of Cost-method Investments [Line Items]
Derivatives not designated as hedging instruments	$ 14		$ 1

[1] Gains (losses) related to derivative instruments are expected to be largely offset by (losses) gains on the underlying exposures being hedged.

[2] Recognized, net of tax, as a component of other comprehensive income within stockholders’ equity.

[3] For the three months ended March 31, 2014, included a $14 million loss in interest expense and a $4 million loss in operating expenses. For the three months ended March 31, 2013, included a $1 million loss in interest expense and a $2 million gain in operating expenses.

[4] Included in operating expenses.

[5] Included in interest expense.

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Basis of Presentation and Recently Issued Accounting Pronouncements

3 Months Ended

Mar. 31, 2014

Basis Of Presentation And Recently Issued Accounting Pronouncements [Abstract]

Basis of Presentation

Basis of Presentation

Avis Budget Group, Inc. provides car and truck rentals and ancillary services to businesses and consumers worldwide. The accompanying unaudited Consolidated Condensed Financial Statements include the accounts and transactions of Avis Budget Group, Inc. and its subsidiaries (“Avis Budget”), as well as entities in which Avis Budget directly or indirectly has a controlling financial interest (collectively, the “Company”), and have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission for interim financial reporting.

The Company operates the following business segments:

• North America—provides car rentals in the United States and vehicle rentals in Canada, as well as ancillary products and services, and operates the Company’s Zipcar car sharing business in North America.

• International—provides and licenses the Company’s brands to third parties for vehicle rentals and ancillary products and services in Europe, the Middle East, Africa, Asia, South America, Central America, the Caribbean, Australia and New Zealand, and operates the Company's car sharing business in certain of these markets.

• Truck Rental—provides truck rentals and ancillary products and services to consumers and commercial users in the United States.

In conjunction with a change in the Company’s management structure, the financial results of the Company’s Zipcar operations outside of North America will now be reported in the Company’s International segment rather than in the Company’s North America segment. The Company’s business segment financial information presented in these Notes to Consolidated Condensed Financial Statements has been recast to conform with the Company’s current business segment reporting alignment for all periods presented. The Company’s consolidated condensed results were not affected by this change.

In presenting the Consolidated Condensed Financial Statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”), management makes estimates and assumptions that affect the amounts reported and related disclosures. Estimates, by their nature, are based on judgment and available information. Accordingly, actual results could differ from those estimates. In management’s opinion, the Consolidated Condensed Financial Statements contain all adjustments necessary for a fair presentation of interim results reported. The results of operations reported for interim periods are not necessarily indicative of the results of operations for the entire year or any subsequent interim period. These financial statements should be read in conjunction with the Company’s 2013 Annual Report on Form 10-K.

Vehicle Programs. The Company presents separately the financial data of its vehicle programs. These programs are distinct from the Company’s other activities since the assets under vehicle programs are generally funded through the issuance of debt that is collateralized by such assets. The income generated by these assets is used, in part, to repay the principal and interest associated with the debt. Cash inflows and outflows relating to the acquisition of such assets and the principal debt repayment or financing of such assets are classified as activities of the Company’s vehicle programs. The Company believes it is appropriate to segregate the financial data of its vehicle programs because, ultimately, the source of repayment of such debt is the realization of such assets.

Currency Transactions. The Company records the gain or loss of foreign-currency transactions on certain intercompany loans and gain or loss on intercompany loan hedges within interest expense related to corporate debt, net. During the three months ended March 31, 2014 and 2013, the Company recorded losses of $2 million and $4 million, respectively, on such items.

Adoption of New Accounting Standards

On January 1, 2014, the Company adopted, as required, Accounting Standards Update No. 2013-04, “Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligations Is Fixed at the Reporting Date,” which requires companies to measure obligations resulting from joint and several liability arrangements for which the total amount of the obligation is fixed at the reporting date. The adoption of this pronouncement did not have a material impact on the Company’s financial statements.

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Stockholders' Equity (Accumulated Other Comprehensive Income) (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Currency Translation Adjustments, Balance	$ 166	$ 193
Net Unrealized Gains (Losses) on Cash Flow Hedges, Balance	2	0
Net Unrealized Gains on Available- For-Sale Securities, Balance	2	2
Currency Translation Adjustments, Balance	(52)	(85)
Accumulated Other Comprehensive Income, Balance	117	110
Currency Translation Adjustments, Current period change	3	(23)
Net unrealized gain on cash flow hedges (a)	1	0
Net unrealized gains on available-for-sale securities, net of tax	(1)	0
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax	0	0
Accumulated Other Comprehensive Income, Current period change	3	(23)
Currency Translation Adjustments, Balance	169	170
Net Unrealized Gains (Losses) on Cash Flow Hedges, Balance	1	0
Net Unrealized Gains on Available- For-Sale Securities, Balance	1	2
Currency Translation Adjustments, Balance	(52)	(85)
Accumulated Other Comprehensive Income, Balance	120	87
Derivatives used in Net Investment Hedge, Net of Tax	$ 11

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Restructuring (Summary Of Changes To Restructuring-Related Liabilities) (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2014		Mar. 31, 2013
Restructuring Reserve [Roll Forward]
March 31, 2014	$ 22
Restructuring expense	7	[1]	10	[2]
Cash payment/utilization	(12)
Balance as of March 31, 2014	17
North America
Restructuring Reserve [Roll Forward]
March 31, 2014	1
Restructuring expense	1
Cash payment/utilization	(1)
Balance as of March 31, 2014	1
International
Restructuring Reserve [Roll Forward]
March 31, 2014	21
Restructuring expense	6
Cash payment/utilization	(11)
Balance as of March 31, 2014	16
Personnel Related
Restructuring Reserve [Roll Forward]
March 31, 2014	17
Restructuring expense	7
Cash payment/utilization	(12)
Balance as of March 31, 2014	12
Facility Related
Restructuring Reserve [Roll Forward]
March 31, 2014	5
Restructuring expense	0
Cash payment/utilization	0
Balance as of March 31, 2014	$ 5

[1] (d) During the three months ended March 31, 2014, transaction-related costs primarily comprised of a non-cash charge for re-acquired license rights and acquisition integration expenses. During the three months ended March 31, 2013, transaction-related costs primarily related to the integration of Avis Europe and the acquisition of Zipcar.

[2] (c) Includes unallocated corporate overhead which is not attributable to a particular segment.

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Segment Information (Summary Of Segments Information) (Detail) (USD $) In Millions, unless otherwise specified	1 Months Ended	3 Months Ended
	Apr. 30, 2014	Mar. 31, 2014		Mar. 31, 2013
Segment Reporting Information [Line Items]
Segment Reporting, Change in Measurement Method		$ 2
Revenues		1,862		1,691
Adjusted EBITDA		117	[1]	93	[1]
Non-vehicle related depreciation and amortization		41		34
Interest expense		56		58
Early extinguishment of debt	26	0		40
Transaction-related costs		8		8
Restructuring expense		7	[2]	10	[3]
Income (loss) before income taxes		5		(57)
North America
Segment Reporting Information [Line Items]
Segment Reporting, Change in Measurement Method		3
Revenues		1,236		1,098
Adjusted EBITDA		114		93
Restructuring expense		1
International
Segment Reporting Information [Line Items]
Segment Reporting, Change in Measurement Method		3
Revenues		551		517
Adjusted EBITDA		17		17
Restructuring expense		6
Truck Rental [Member]
Segment Reporting Information [Line Items]
Segment Reporting, Change in Measurement Method		4
Revenues		75		76
Adjusted EBITDA		(2)		(5)
Corporate and Other [Member]
Segment Reporting Information [Line Items]
Revenues		0	[3]	0	[3]
Adjusted EBITDA		$ (12)	[3]	$ (12)	[3]

[1] (b) Amounts reflect the revised definition of Adjusted EBITDA to exclude restructuring expense, which resulted in an increase in Adjusted EBITDA in North America, International and Truck Rental of $3 million, $3 million and $4 million, respectively, in the three months ended March 31, 2013. The realignment of the Company's operating segments had no effect on Adjusted EBITDA for the three months ended March 31, 2013.

[2] (d) During the three months ended March 31, 2014, transaction-related costs primarily comprised of a non-cash charge for re-acquired license rights and acquisition integration expenses. During the three months ended March 31, 2013, transaction-related costs primarily related to the integration of Avis Europe and the acquisition of Zipcar.

[3] (c) Includes unallocated corporate overhead which is not attributable to a particular segment.

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Restructuring (Tables)

3 Months Ended

Mar. 31, 2014

Restructuring and Related Activities [Abstract]

Summary Of Changes To Restructuring-Related Liabilities

The following tables summarize the changes to our restructuring-related liabilities and identify the amounts recorded within the Company’s reportable segments, and by category, for restructuring expense and corresponding payments and utilizations:

		North America			International			Total
Balance as of January 1, 2014		$	1		$	21		$	22
	Restructuring expense	1			6			7
	Cash payment/utilization	(1		)	(11		)	(12		)
Balance as of March 31, 2014		$	1		$	16		$	17
		Personnel Related			Facility Related			Total
Balance as of January 1, 2014		$	17		$	5		$	22
	Restructuring expense	7			—			7
	Cash payment/utilization	(12		)	—			(12		)
Balance as of March 31, 2014		$	12		$	5		$	17

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Earnings Per Share (Computation Of Basic And Diluted Earnings Per Share) (Detail) (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2014		Mar. 31, 2013
Earnings Per Share [Abstract]
Net income (loss) for basic and diluted EPS	$ 4		$ (46)
Weighted Average Number of Shares Outstanding, Basic	106.6		107.7
Options, warrants and non-vested stock	2.0	[1],[2]	0	[1],[2]
Convertible debt	0	[3],[4]	0	[3],[4]
Diluted weighted average shares outstanding	108.6		107.7
Basic (US$ per share)	$ 0.03		$ (0.43)
Diluted (US$ per share)	$ 0.03		$ (0.43)
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Anti-dilutive shares			3.4
Options [Member]
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Anti-dilutive shares			1.5
Warrants [Member]
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Anti-dilutive shares			4.7
Convertible Debt Securities [Member]
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Anti-dilutive shares	4.0		4.7

[1] For the three months ended March 31, 2014, the number of anti-dilutive securities which were excluded from the computation of diluted earnings per share was not significant.

[2] As the Company incurred a net loss for the three months ended March 31, 2013, 1.5 million outstanding options, 4.7 million warrants and 3.4 million non-vested stock awards have an anti-dilutive effect and therefore are excluded from the computation of diluted weighted average shares outstanding.

[3] For the three months ended March 31, 2014, 4.0 million issuable shares underlying the 3½% convertible notes due 2014 have an anti-dilutive effect and therefore are excluded from the computation of diluted weighted average shares outstanding.

[4] For the three months ended March 31, 2013, 4.7 million issuable shares underlying the 3½% convertible notes due 2014 have an anti-dilutive effect and therefore are excluded from the computation of diluted weighted average shares outstanding.

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Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule Of Intangible Assets

Intangible assets consisted of:

	As of March 31, 2014						As of December 31, 2013
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Amortized Intangible Assets
License agreements (a)(b)	$	280	$	55	$	225	$	272	$	52	$	220
Customer relationships (a)	177		39		138		166		35		131
Other	2		1		1		2		1		1
Total	$	459	$	95	$	364	$	440	$	88	$	352
Unamortized Intangible Assets
Goodwill (a)(b)	$	713					$	691
Trademarks	$	568					$	571

__________

^(a)  The increases in carrying amounts reflect the acquisition of the Budget licensee for Edmonton.

^(b)  The increases in carrying amounts reflect the reacquired right to operate the Budget brand in Portugal.

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Guarantor And Non-Guarantor Consolidating Condensed Financial Statements (Consolidating Condensed Balance Sheets) (Detail) (USD $) In Millions, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013	Mar. 31, 2013	Dec. 31, 2012
Current assets:
Cash and cash equivalents	$ 841	$ 693	$ 569	$ 606
Receivables, net	646	619
Deferred income taxes	174	177
Other current assets	501	455
Total current assets	2,162	1,944
Property and equipment, net	613	614
Deferred income taxes	1,264	1,299
Goodwill	713	691
Other intangibles, net	932	923
Other non-current assets	362	361
Intercompany receivables (payables)	0	0
Investment in subsidiaries	0	0
Total assets exclusive of assets under vehicle programs	6,046	5,832
Assets under vehicle programs:
Program cash	104	116
Vehicles, net	10,617	9,582
Receivables from vehicle manufacturers and other	240	391
Investment in Avis Budget Rental Car Funding (AESOP) LLC—related party	362	363
Total Assets under vehicle programs	11,323	10,452
Total assets	17,369	16,284
Current liabilities:
Accounts payable and other current liabilities	1,474	1,479
Long-term Debt, Current Maturities	393	89
Total current liabilities	1,867	1,568
Long-term debt	3,303	3,305
Other non-current liabilities	840	847
Due to Related Parties, Noncurrent	0	0
Total liabilities exclusive of liabilities under vehicle programs	6,010	5,720
Liabilities under vehicle programs:
Debt	1,640	1,681
Due to Avis Budget Rental Car Funding (AESOP) LLC-related party	6,359	5,656
Deferred income taxes	2,141	2,177
Other	516	279
Total Liabilities under vehicle programs	10,656	9,793
Total stockholders' equity	703	771
Total liabilities and stockholders’ equity	17,369	16,284
Parent [Member]
Current assets:
Cash and cash equivalents	5	14	6	5
Receivables, net	0	0
Deferred income taxes	1	1
Other current assets	3	4
Total current assets	9	19
Property and equipment, net	0	0
Deferred income taxes	20	20
Goodwill	0	0
Other intangibles, net	0	0
Other non-current assets	104	104
Intercompany receivables (payables)	146	145
Investment in subsidiaries	617	671
Total assets exclusive of assets under vehicle programs	896	959
Assets under vehicle programs:
Program cash	0	0
Vehicles, net	0	0
Receivables from vehicle manufacturers and other	0	0
Investment in Avis Budget Rental Car Funding (AESOP) LLC—related party	0	0
Total Assets under vehicle programs	0	0
Total assets	896	959
Current liabilities:
Accounts payable and other current liabilities	28	25
Long-term Debt, Current Maturities	66	65
Total current liabilities	94	90
Long-term debt	0	0
Other non-current liabilities	99	98
Due to Related Parties, Noncurrent	0	0
Total liabilities exclusive of liabilities under vehicle programs	193	188
Liabilities under vehicle programs:
Debt	0	0
Due to Avis Budget Rental Car Funding (AESOP) LLC-related party	0	0
Deferred income taxes	0	0
Other	0	0
Total Liabilities under vehicle programs	0	0
Total stockholders' equity	703	771
Total liabilities and stockholders’ equity	896	959
Subsidiary Issuers [Member]
Current assets:
Cash and cash equivalents	459	242	17	102
Receivables, net	0	0
Deferred income taxes	0	0
Other current assets	75	80
Total current assets	534	322
Property and equipment, net	104	109
Deferred income taxes	1,107	1,142
Goodwill	0	0
Other intangibles, net	41	41
Other non-current assets	91	96
Intercompany receivables (payables)	0	210
Investment in subsidiaries	2,944	2,900
Total assets exclusive of assets under vehicle programs	4,821	4,820
Assets under vehicle programs:
Program cash	0	0
Vehicles, net	7	10
Receivables from vehicle manufacturers and other	0	0
Investment in Avis Budget Rental Car Funding (AESOP) LLC—related party	0	0
Total Assets under vehicle programs	7	10
Total assets	4,828	4,830
Current liabilities:
Accounts payable and other current liabilities	211	238
Long-term Debt, Current Maturities	306	14
Total current liabilities	517	252
Long-term debt	2,660	2,955
Other non-current liabilities	93	96
Due to Related Parties, Noncurrent	932	844
Total liabilities exclusive of liabilities under vehicle programs	4,202	4,147
Liabilities under vehicle programs:
Debt	9	11
Due to Avis Budget Rental Car Funding (AESOP) LLC-related party	0	0
Deferred income taxes	0	0
Other	0	1
Total Liabilities under vehicle programs	9	12
Total stockholders' equity	617	671
Total liabilities and stockholders’ equity	4,828	4,830
Guarantor Subsidiaries [Member]
Current assets:
Cash and cash equivalents	0	12	8	0
Receivables, net	183	150
Deferred income taxes	155	156
Other current assets	93	82
Total current assets	431	400
Property and equipment, net	312	312
Deferred income taxes	141	141
Goodwill	339	342
Other intangibles, net	516	519
Other non-current assets	18	18
Intercompany receivables (payables)	865	853
Investment in subsidiaries	3,340	3,347
Total assets exclusive of assets under vehicle programs	5,962	5,932
Assets under vehicle programs:
Program cash	0	0
Vehicles, net	14	9
Receivables from vehicle manufacturers and other	0	0
Investment in Avis Budget Rental Car Funding (AESOP) LLC—related party	0	0
Total Assets under vehicle programs	14	9
Total assets	5,976	5,941
Current liabilities:
Accounts payable and other current liabilities	502	487
Long-term Debt, Current Maturities	3	3
Total current liabilities	505	490
Long-term debt	5	6
Other non-current liabilities	229	221
Due to Related Parties, Noncurrent	345	340
Total liabilities exclusive of liabilities under vehicle programs	1,084	1,057
Liabilities under vehicle programs:
Debt	0	0
Due to Avis Budget Rental Car Funding (AESOP) LLC-related party	0	0
Deferred income taxes	1,948	1,984
Other	0	0
Total Liabilities under vehicle programs	1,948	1,984
Total stockholders' equity	2,944	2,900
Total liabilities and stockholders’ equity	5,976	5,941
Non-Guarantor Subsidiaries [Member]
Current assets:
Cash and cash equivalents	377	425	538	499
Receivables, net	463	469
Deferred income taxes	23	21
Other current assets	330	289
Total current assets	1,193	1,204
Property and equipment, net	197	193
Deferred income taxes	0	0
Goodwill	374	349
Other intangibles, net	375	363
Other non-current assets	149	143
Intercompany receivables (payables)	626	331
Investment in subsidiaries	0	0
Total assets exclusive of assets under vehicle programs	2,914	2,583
Assets under vehicle programs:
Program cash	104	116
Vehicles, net	10,596	9,563
Receivables from vehicle manufacturers and other	240	391
Investment in Avis Budget Rental Car Funding (AESOP) LLC—related party	362	363
Total Assets under vehicle programs	11,302	10,433
Total assets	14,216	13,016
Current liabilities:
Accounts payable and other current liabilities	738	730
Long-term Debt, Current Maturities	18	7
Total current liabilities	756	737
Long-term debt	638	344
Other non-current liabilities	423	436
Due to Related Parties, Noncurrent	360	355
Total liabilities exclusive of liabilities under vehicle programs	2,177	1,872
Liabilities under vehicle programs:
Debt	1,631	1,670
Due to Avis Budget Rental Car Funding (AESOP) LLC-related party	6,359	5,656
Deferred income taxes	193	193
Other	516	278
Total Liabilities under vehicle programs	8,699	7,797
Total stockholders' equity	3,340	3,347
Total liabilities and stockholders’ equity	14,216	13,016
Eliminations [Member]
Current assets:
Cash and cash equivalents	0	0	0	0
Receivables, net	0	0
Deferred income taxes	(5)	(1)
Other current assets	0	0
Total current assets	(5)	(1)
Property and equipment, net	0	0
Deferred income taxes	(4)	(4)
Goodwill	0	0
Other intangibles, net	0	0
Other non-current assets	0	0
Intercompany receivables (payables)	(1,637)	(1,539)
Investment in subsidiaries	(6,901)	(6,918)
Total assets exclusive of assets under vehicle programs	(8,547)	(8,462)
Assets under vehicle programs:
Program cash	0	0
Vehicles, net	0	0
Receivables from vehicle manufacturers and other	0	0
Investment in Avis Budget Rental Car Funding (AESOP) LLC—related party	0	0
Total Assets under vehicle programs	0	0
Total assets	(8,547)	(8,462)
Current liabilities:
Accounts payable and other current liabilities	(5)	(1)
Long-term Debt, Current Maturities	0	0
Total current liabilities	(5)	(1)
Long-term debt	0	0
Other non-current liabilities	(4)	(4)
Due to Related Parties, Noncurrent	(1,637)	(1,539)
Total liabilities exclusive of liabilities under vehicle programs	(1,646)	(1,544)
Liabilities under vehicle programs:
Debt	0	0
Due to Avis Budget Rental Car Funding (AESOP) LLC-related party	0	0
Deferred income taxes	0	0
Other	0	0
Total Liabilities under vehicle programs	0	0
Total stockholders' equity	(6,901)	(6,918)
Total liabilities and stockholders’ equity	$ (8,547)	$ (8,462)

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Restructuring

3 Months Ended

Mar. 31, 2014

Restructuring and Related Activities [Abstract]

Restructuring Activities

Restructuring Activities

Subsequent to the acquisition of Avis Europe, the Company began a restructuring initiative, identifying synergies across the Company, enhancing organizational efficiencies and consolidating and rationalizing processes. During the three months ended March 31, 2014, as part of this process, the Company formally communicated the termination of employment to approximately130employees and recorded$7 millionof expense in connection with these initiatives. These expenses primarily represent severance, outplacement services and other costs associated with employee terminations. As ofMarch 31, 2014, the Company has terminated approximately90of these employees. The Company expects further restructuring expense of approximately$15 millionto be incurred in 2014.

The following tables summarize the changes to our restructuring-related liabilities and identify the amounts recorded within the Company’s reportable segments, and by category, for restructuring expense and corresponding payments and utilizations:

		North America			International			Total
Balance as of January 1, 2014		$	1		$	21		$	22
	Restructuring expense	1			6			7
	Cash payment/utilization	(1		)	(11		)	(12		)
Balance as of March 31, 2014		$	1		$	16		$	17
		Personnel Related			Facility Related			Total
Balance as of January 1, 2014		$	17		$	5		$	22
	Restructuring expense	7			—			7
	Cash payment/utilization	(12		)	—			(12		)
Balance as of March 31, 2014		$	12		$	5		$	17

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CONSOLIDATED CONDENSED BALANCE SHEETS (USD $) In Millions, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Current assets:
Cash and cash equivalents	$ 841	$ 693
Receivables, net	646	619
Deferred income taxes	174	177
Other current assets	501	455
Total current assets	2,162	1,944
Property and equipment, net	613	614
Deferred income taxes	1,264	1,299
Goodwill	713	691
Other intangibles, net	932	923
Other non-current assets	362	361
Total assets exclusive of assets under vehicle programs	6,046	5,832
Assets under vehicle programs:
Program cash	104	116
Vehicles, net	10,617	9,582
Receivables from vehicle manufacturers and other	240	391
Investment in Avis Budget Rental Car Funding (AESOP) LLC—related party	362	363
Total assets under vehicle programs:	11,323	10,452
Total assets	17,369	16,284
Current liabilities:
Accounts payable and other current liabilities	1,474	1,479
Short-term debt and current portion of long-term debt	393	89
Total current liabilities	1,867	1,568
Long-term debt	3,303	3,305
Other non-current liabilities	840	847
Total liabilities exclusive of liabilities under vehicle programs	6,010	5,720
Liabilities under vehicle programs:
Debt	1,640	1,681
Debt due to Avis Budget Rental Car Funding (AESOP) LLC—related party	6,359	5,656
Deferred income taxes	2,141	2,177
Other	516	279
Total Liabilities under vehicle programs	10,656	9,793
Commitments and contingencies (Note 10)
Stockholders’ equity:
Preferred stock, $0.01 par value—authorized 10 million shares; none issued and outstanding	0	0
Common stock, $0.01 par value—authorized 250 million shares; issued 137,081,117 and 137,081,056 shares	1	1
Additional paid-in capital	7,729	7,893
Accumulated deficit	(2,356)	(2,360)
Accumulated other comprehensive income	120	117
Treasury stock, at cost—31,457,613 and 30,515,721 shares	(4,791)	(4,880)
Total stockholders’ equity	703	771
Total liabilities and stockholders’ equity	$ 17,369	$ 16,284

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Stockholders' Equity

3 Months Ended

Mar. 31, 2014

Equity [Abstract]

Stockholders' Equity

Stockholders’ Equity

Share Repurchases

In August 2013, the Company obtained Board approval to repurchase of up to $200 million of its common stock. During the three months ended March 31, 2014, the Company repurchased approximately 1,635,000 shares of common stock at a cost of approximately $75 million under the repurchase program. The Company did not repurchase any of its common stock during the three months ended March 31, 2013.

Accumulated Other Comprehensive Income

The components of accumulated other comprehensive income were as follows: 

	Currency Translation Adjustments			Net Unrealized Gains on Cash Flow Hedges		Net Unrealized Gains (Losses) on Available-for Sale Securities			Minimum Pension Liability Adjustment			Accumulated Other Comprehensive Income
Balance, January 1, 2014	$	166		$	1	$	2		$	(52	)	$	117
Net current-period other comprehensive income (a)	3			1		(1		)	—			3
Balance, March 31, 2014	$	169		$	2	$	1		$	(52	)	$	120
Balance, January 1, 2013	$	193		$	—	$	2		$	(85	)	$	110
Net current-period other comprehensive loss (a)	(23		)	—		—			—			(23		)
Balance, March 31, 2013	$	170		$	—	$	2		$	(85	)	$	87

__________

All components of accumulated other comprehensive income are net of tax, except currency translation adjustments, which exclude income taxes related to indefinite investments in foreign subsidiaries and include $11 million loss, net of tax, related to the Company's hedge of its net investment in Euro-denominated foreign operations (See Note 13 - Financial Instruments).

^(a)  For the periods ended March 31, 2014 and 2013, amounts reclassified from accumulated other comprehensive income were not material.

Total Comprehensive Income

Comprehensive income consists of net income and other gains and losses affecting stockholders’ equity that, under GAAP, are excluded from net income.

The components of other comprehensive income were as follows: 

		Three Months Ended   March 31,
		2014			2013
Net income (loss)		$	4		$	(46	)
Other comprehensive income (loss):
	Currency translation adjustments	3			(23		)
	Net unrealized loss on available-for-sale securities	(1		)	—
	Net unrealized gain on cash flow hedges (a)	1			—
		3			(23		)
Total comprehensive income (loss)		$	7		$	(69	)

__________

All components of other comprehensive income are net of tax, except currency translation adjustments, which exclude income taxes related to indefinite investments in foreign subsidiaries.

^(a) The Company’s net unrealized gain on cash flow hedges was $1 million before tax during the three months ended March 31, 2014 and was not material for the three months ended March 31, 2013.

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Document and Entity Information	3 Months Ended
	Mar. 31, 2014	Apr. 30, 2014
Document Documentand Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2014
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q1
Trading Symbol	CAR
Entity Registrant Name	AVIS BUDGET GROUP, INC.
Entity Central Index Key	0000723612
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		105,396,505

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Stock-Based Compensation

3 Months Ended

Mar. 31, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation

Stock-Based Compensation

The Company records compensation expense for all stock-based awards based on the estimated fair value of the award at the grant date, which is recognized over the vesting period. The Company recorded stock-based compensation expense of $8 million and $4 million ($5 million and $3 million, net of tax) during the three months ended March 31, 2014 and 2013, respectively, related to stock-based awards that were granted by the Company. In jurisdictions with net operating loss carryforwards, tax deductions for exercises and/or vestings of stock-based awards have generated a $57 million tax benefit at March 31, 2014, with a corresponding increase to additional paid-in capital. Approximately $22 million of incremental tax benefits will be recorded in additional paid-in capital when realized in these jurisdictions.

Stock Unit Awards

The Company’s performance-based restricted stock units granted in 2014 and 2013 incorporate a total shareholder return metric. The grant date fair value of these awards is estimated using a Monte Carlo simulation model to estimate the Company’s shareholder-return ranking relative to an applicable stock index. The weighted average assumptions used in the Monte Carlo simulation model to calculate the fair value of the Company’s stock unit awards are as follows:

	Three Months Ended   March 31,
	2014	2013
Expected volatility of stock price	40%	43%
Risk-free interest rate	0.85%	0.39%
Expected term of awards	3 years	3 years
Dividend yield	0.0%	0.0%

The activity related to the Company’s restricted stock units (“RSUs”) and cash units, consisted of (in thousands of shares):

		Time-Based RSUs				Performance-Based and Market-Based RSUs				Cash Unit Awards
		Number of Shares		Weighted Average Grant Date Fair Value		Number of Shares		Weighted Average Grant Date Fair Value		Number of Units	Weighted Average Grant Date Fair Value
Outstanding at January 1, 2014 (a)		1,308		$	17.92	2,043		$	13.79	267	$	14.90
	Granted	352		41.15		235		39.37		—	—
	Vested (b)	(588	)	16.62		(432	)	10.91		—	—
	Forfeited/expired	(56	)	23.49		(32	)	21.48		—	—
Outstanding at March 31, 2014 (c)		1,016		$	26.40	1,814		$	17.66	267	$	14.90

__________

^(a)  Reflects the maximum number of stock units assuming achievement of all performance-, market- and time-vesting criteria and does not include those for non-employee directors. The weighted-average fair value of time-based RSUs, performance-based and market-based RSUs, and cash units granted in 2013 was $21.20, $20.30 and $17.14, respectively.

^(b)  The total grant date fair value of RSUs vested during the three months ended March 31, 2014 and 2013 was $14 million and $14 million, respectively.

^(c)  The Company’s outstanding time-based RSUs, performance-based and market-based RSUs, and cash units had aggregate intrinsic value of $49 million, $88 million and $13 million, respectively. Aggregate unrecognized compensation expense related to time-based RSUs and performance-based and market-based RSUs amounted to $43 million and will be recognized over a weighted average vesting period of 1.3 years. The Company assumes that substantially all outstanding awards will vest over time.

Stock Options

The stock option activity consisted of (in thousands of shares): 

		Number of Options		Weighted Average Exercise Price		Aggregate Intrinsic Value (in millions)		Weighted Average Remaining Contractual Term (years)
Outstanding at January 1, 2014		979		$	2.82	$	37	5.2
	Granted	—		—		—
	Exercised	(87	)	2.22		4
	Forfeited/expired	—		—		—
Outstanding at March 31, 2014 (a)		892		2.88		41		5.0
Exercisable at March 31, 2014		860		$	2.56	$	40	5.0

__________ 

^(a)  The Company assumes that substantially all outstanding stock options will vest over time.

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CONSOLIDATED CONDENSED BALANCE SHEETS (Parenthetical) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Statement of Financial Position [Abstract]
Preferred stock,par value	$ 0.01	$ 0.01
Preferred stock,shares authorized	10,000,000	10,000,000
Preferred stock,shares issued	0	0
Preferred stock,shares outstanding	0	0
Common stock,par value	$ 0.01	$ 0.01
Common stock,shares authorized	250,000,000	250,000,000
Common stock,shares issued	137,081,117	137,081,056
Treasury stock,shares	31,457,613	30,515,721

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Vehicle Rental Activities

3 Months Ended

Mar. 31, 2014

Vehicle Rental Activities [Abstract]

Vehicle Rental Activities

Vehicle Rental Activities

The components of the Company’s vehicles, net within assets under vehicle programs were as follows:

	As of			As of
	March 31,			December 31,
	2014			2013
Rental vehicles	$	11,657		$	10,234
Less: Accumulated depreciation	(1,388		)	(1,411		)
	10,269			8,823
Vehicles held for sale	348			759
Vehicles, net	$	10,617		$	9,582

The components of vehicle depreciation and lease charges, net are summarized below:

	Three Months Ended   March 31,
	2014			2013
Depreciation expense	$	407		$	353
Lease charges	37			33
Gain on sales of vehicles, net	(11		)	—
Vehicle depreciation and lease charges, net	$	433		$	386

At March 31, 2014 and 2013, the Company had purchases of vehicles included in payables of $498 million and $496 million, respectively, and sales of vehicles included in receivables of $231 million and $285 million, respectively.

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Financial Instruments

3 Months Ended

Mar. 31, 2014

Investments, All Other Investments [Abstract]

Financial Instruments

Financial Instruments

Derivative Instruments and Hedging Activities

The Company uses currency exchange contracts to manage its exposure to changes in currency exchange rates associated with its non-U.S.-dollar denominated receivables and forecasted royalties, forecasted earnings of non-U.S. subsidiaries and forecasted non-U.S.-dollar denominated acquisitions. The Company primarily hedges a portion of its current-year currency exposure to the Australian, Canadian and New Zealand dollars, the Euro and the British pound sterling. The majority of forward contracts do not qualify for hedge accounting treatment. The fluctuations in the value of these forward contracts do, however, largely offset the impact of changes in the value of the underlying risk they economically hedge. Forward contracts used to hedge forecasted third-party receipts and disbursements up to 12 months are designated and do qualify as cash flow hedges.

The Company has designated its 6% Euro-denominated notes as a hedge of its net investment in Euro-denominated foreign operations. For the three months ended March 31, 2014, the Company recorded no gain or loss in accumulated other comprehensive income as part of currency translation adjustments. There was no ineffectiveness related to the Company's cash flow or net investment hedges during the three months ended March 31, 2014 and the Company does not expect to reclassify any amounts from accumulated other comprehensive income into earnings over the next 12 months.

The Company uses various hedging strategies including interest rate swaps and interest rate caps to create an appropriate mix of fixed and floating rate assets and liabilities. The Company uses interest rate swaps and interest rate caps to manage the risk related to its floating rate corporate debt and its floating rate vehicle-backed debt. The Company records the effective portion of changes in the fair value of its cash flow hedges to other comprehensive income, net of tax, and subsequently reclassifies these amounts into earnings in the period during which the hedged transaction is recognized. The Company records the gains or losses related to freestanding derivatives, which are not designated as a hedge for accounting purposes, in its consolidated results of operations. The changes in fair values of hedges that are determined to be ineffective are immediately reclassified from accumulated other comprehensive income into earnings. The Company estimates that $6 million of losses currently recorded in accumulated other comprehensive income will be recognized in earnings over the next 12 months.

From time to time, the Company enters into derivative commodity contracts to manage its exposure to changes in the price of unleaded gasoline. Changes in the fair value of these derivatives are recorded within operating expenses.

Certain of the Company’s derivative instruments contain collateral support provisions that require the Company to post cash collateral to the extent that such derivatives are in a liability position. The aggregate fair value of such derivatives and the aggregate fair value of assets needed to settle these derivatives as of March 31, 2014 was approximately $1 million, for which the Company has posted cash collateral in the normal course of business.

The Company held derivative instruments with absolute notional values as follows:

	As of
	March 31, 2014
Interest rate caps (a)	$	11,981
Interest rate swaps	1,503
Foreign exchange swaps	548
Foreign exchange forward contracts	400
Commodity contracts (millions of gallons of unleaded gasoline)	7

__________

^(a)  Represents $9.7 billion of interest rate caps sold, partially offset by approximately $2.3 billion of interest rate caps purchased. These amounts exclude $7.5 billion of interest rate caps purchased by the Company’s Avis Budget Rental Car Funding subsidiary.

Fair values (Level 2) of derivative instruments were as follows: 

		As of March 31, 2014				As of December 31, 2013
		Fair Value, Asset Derivatives		Fair Value, Liability Derivatives		Fair Value, Asset Derivatives		Fair Value, Liability Derivatives
Derivatives designated as hedging instruments
	Interest rate swaps (a)	$	3	$	—	$	2	$	1
Derivatives not designated as hedging instruments
	Interest rate caps (b)	1		9		2		13
	Interest rate swaps	—		—		—		—
	Foreign exchange swaps and forward contracts (c)	3		13		3		5
	Commodity contracts	—		—		—		—
	Total	$	7	$	22	$	7	$	19

__________

Amounts in this table exclude derivatives issued by Avis Budget Rental Car Funding, as it is not consolidated by the Company; however, certain amounts related to the derivatives held by Avis Budget Rental Car Funding are included within accumulated other comprehensive income, as discussed in Note 11—Stockholders’ Equity.

^(a)  Included in other non-current assets or other non-current liabilities.

^(b)  Included in assets under vehicle programs or liabilities under vehicle programs.

^(c)  Included in other current assets or other current liabilities.

The effects of derivatives recognized in the Company’s Consolidated Condensed Financial Statements wereas follows:     

		Three Months Ended   March 31,
		2014			2013
Derivatives designated as hedging instruments
	Interest rate swaps (a)	$	1		$	—
Derivatives not designated as hedging instruments (b)
	Interest rate caps (c)	—			3
	Foreign exchange swaps and forward contracts (d)	(18		)	1
	Commodity contracts (e)	—			2
	Total	$	(17	)	$	6

__________

^(a)  Recognized, net of tax, as a component of other comprehensive income within stockholders’ equity.

^(b)  Gains (losses) related to derivative instruments are expected to be largely offset by (losses) gains on the underlying exposures being hedged.

^(c)  Included in interest expense.

^(d)  For the three months ended March 31, 2014, included a $14 million loss in interest expense and a $4 million loss in operating expenses. For the three months ended March 31, 2013, included a $1 million loss in interest expense and a $2 million gain in operating expenses.

^(e)  Included in operating expenses.

Debt Instruments

The carrying amounts and estimated fair values (Level 2) of debt instruments were as follows:

		As of March 31, 2014				As of December 31, 2013
		Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Corporate debt
	Short-term debt and current portion of long-term debt, excluding convertible debt	$	327	$	348	$	23	$	23
	Convertible debt	66		197		66		159
	Long-term debt	3,303		3,397		3,305		3,416
Debt under vehicle programs
	Vehicle-backed debt due to Avis Budget Rental Car Funding	$	6,359	$	6,493	$	5,656	$	5,732
	Vehicle-backed debt	1,631		1,640		1,668		1,675
	Interest rate swaps and interest rate contracts (a)	9		9		13		13

 __________

^(a)  Derivatives in a liability position.

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Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2014

Earnings Per Share [Abstract]

Computation Of Basic And Diluted Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share (“EPS”) (shares in millions): 

		Three Months Ended   March 31,
		2014		2013
Net income (loss) for basic and diluted EPS		$	4	$	(46	)
Basic weighted average shares outstanding		106.6		107.7
Options, warrants and non-vested stock (a) (b)		2.0		—
Convertible debt (c) (d)		—		—
Diluted weighted average shares outstanding		108.6		107.7
Earnings per share:
	Basic	$	0.03	$	(0.43	)
	Diluted	$	0.03	$	(0.43	)

__________

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Segment Information

3 Months Ended

Mar. 31, 2014

Segment Reporting [Abstract]

Segment Information

Segment Information

The Company’s chief operating decision maker assesses performance and allocates resources based upon the separate financial information from the Company’s operating segments. In identifying its reportable segments, the Company considered the nature of services provided, the geographical areas in which the segments operated and other relevant factors. The Company aggregates two of its operating segments into each of its North America and International reportable segments.

Management evaluates the operating results of each of its reportable segments based upon revenue and “Adjusted EBITDA,” which the Company defines as income from continuing operations before non-vehicle related depreciation and amortization, any impairment charge, restructuring expense, early extinguishment of debt costs, non-vehicle related interest, transaction-related costs and income taxes. The Company’s presentation of Adjusted EBITDA may not be comparable to similarly-titled measures used by other companies. In the first quarter of 2014, the Company revised its definition of Adjusted EBITDA to exclude restructuring expense and has recast its 2013 Adjusted EBITDA to conform with the revised definition, consistent with the manner in which management assesses performance and allocates resources. The Company’s presentation of Adjusted EBITDA may not be comparable to similarly-titled measures used by other companies.

				Three Months Ended March 31,
				2014					2013
				Revenues		Adjusted EBITDA			Revenues (a)		Adjusted EBITDA (b)
North America				$	1,236	$	114		$	1,098	$	93
International				551		17			517		17
Truck Rental				75		(2		)	76		(5		)
Corporate and Other (c)				—		(12		)	—		(12		)
	Total Company			$	1,862	117			$	1,691	93
Less:		Non-vehicle related depreciation and amortization				41					34
		Interest expense related to corporate debt, net:
			Interest expense			56					58
			Early extinguishment of debt			—					40
		Transaction-related costs (d)				8					8
		Restructuring expense				7					10
Income (loss) before income taxes						$	5				$	(57	)

__________

^(a) Amounts reflect the Company’s realignment of its operating segments (see Note 1 - Basis of Presentation for details). As a result, previously reported amounts were recast decreasing North America revenues and increasing International revenues by $2 million in the three months ended March 31, 2013.

^(b)  Amounts reflect the revised definition of Adjusted EBITDA to exclude restructuring expense, which resulted in an increase in Adjusted EBITDA in North America, International and Truck Rental of $3 million, $3 million and $4 million, respectively, in the three months ended March 31, 2013. The realignment of the Company's operating segments had no effect on Adjusted EBITDA for the three months ended March 31, 2013.

^(c)  Includes unallocated corporate overhead which is not attributable to a particular segment.

^(d)  During the three months ended March 31, 2014, transaction-related costs primarily comprised of a non-cash charge for re-acquired license rights and acquisition integration expenses. During the three months ended March 31, 2013, transaction-related costs primarily related to the integration of Avis Europe and the acquisition of Zipcar.

Since December 31, 2013, there have been no significant changes in segment assets other than in the Company’s North America segment. As of March 31, 2014 and December 31, 2013, North America assets under vehicle programs were approximately $8.8 billion and $7.9 billion, respectively.

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Debt Under Vehicle Programs and Borrowing Arrangements

3 Months Ended

Mar. 31, 2014

Debt Disclosure [Abstract]

Debt Under Vehicle Programs and Borrowing Arrangements

Debt Under Vehicle Programs and Borrowing Arrangements

Debt under vehicle programs including related party debt due to Avis Budget Rental Car Funding (AESOP) LLC (“Avis Budget Rental Car Funding”), consisted of:

	As of		As of
	March 31,		December 31,
	2014		2013
North America - Debt due to Avis Budget Rental Car Funding (a)	$	6,359	$	5,656
North America - Canadian borrowings (a)(b)	482		400
International - Debt borrowings (c)	584		731
International - Capital leases (a)	353		289
Truck Rental - Debt borrowings	211		226
Other	10		35
Total	$	7,999	$	7,337

__________

^(a)  The increase reflects additional borrowings principally to fund an increase in the Company’s fleet driven by increased rental volume.

^(b)  The increase reflects additional borrowings principally to fund an increase in the Company’s fleet driven by the acquisition of its Budget licensee for Edmonton.

^(c)  The decrease is principally related to the timing of borrowings related to recently acquired fleet.

DEBT MATURITIES

The following table provides the contractual maturities of the Company’s debt under vehicle programs, including related party debt due to Avis Budget Rental Car Funding at March 31, 2014.

	Debt Under Vehicle Programs
Within 1 year (a)	$	1,131
Between 1 and 2 years	2,218
Between 2 and 3 years	1,571
Between 3 and 4 years	902
Between 4 and 5 years	1,601
Thereafter	576
Total	$	7,999

 __________

^(a)  Vehicle-backed debt maturing within one year includes term asset-backed securities of approximately $952 million and bank and bank-sponsored borrowings of $179 million.

COMMITTED CREDIT FACILITIES AND AVAILABLE FUNDING ARRANGEMENTS

As of March 31, 2014, available funding under the Company’s vehicle programs (including related party debt due to Avis Budget Rental Car Funding) consisted of:

	Total Capacity (a)		Outstanding Borrowings		Available Capacity
North America - Debt due to Avis Budget Rental Car Funding (b)	$	8,544	$	6,359	$	2,185
North America - Canadian borrowings (c)	724		482		242
International - Debt borrowings (d)	1,511		584		927
International - Capital leases (e)	468		353		115
Truck Rental - Debt borrowings (f)	230		211		19
Other	10		10		—
Total	$	11,487	$	7,999	$	3,488

__________

^(a)  Capacity is subject to maintaining sufficient assets to collateralize debt.

^(b)  The outstanding debt is collateralized by approximately $8.1 billion of underlying vehicles and related assets.

^(c)  The outstanding debt is collateralized by $604 million of underlying vehicles and related assets.

^(d)  The outstanding debt is collateralized by approximately $1.0 billion of underlying vehicles and related assets.

^(e)  The outstanding debt is collateralized by $387 million of underlying vehicles and related assets.

^(f)  The outstanding debt is collateralized by $351 million of underlying vehicles and related assets.

DEBT COVENANTS

Debt agreements under the Company’s vehicle-backed funding programs contain restrictive covenants, including restrictions on dividends paid to the Company by certain of its subsidiaries and restrictions on indebtedness, mergers, liens, liquidations and sale and leaseback transactions and in some cases also require compliance with certain financial requirements. As of March 31, 2014, the Company is not aware of any instances of non-compliance with any of the financial or restrictive covenants contained in the debt agreements under its vehicle-backed funding programs.

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Stockholders' Equity (Components Of Other Comprehensive Income) (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Equity [Abstract]
Net income (loss)	$ 4	$ (46)
Currency translation adjustments	3	(23)
Net unrealized loss on available-for-sale securities	(1)	0
Net unrealized gain on cash flow hedges (a)	1	0
Other comprehensive income (loss)	3	(23)
Total comprehensive income (loss)	7	(69)
Net unrealized gain (losses) on cash flow hedges, before tax	$ 1

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Income Taxes

3 Months Ended

Mar. 31, 2014

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The Company’s effective tax rate for the three months ended March 31, 2014 is a provision of 20.0%. Such rate differs from the Federal statutory rate of 35.0% primarily due to state income taxes.

The Company’s effective tax rate for the three months ended March 31, 2013 was a benefit of 19.3%. Such rate differs from the Federal statutory rate of 35.0% primarily due to the treatment of the expenses for the early extinguishment of corporate debt.

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Long-term Debt and Borrowing Arrangements

3 Months Ended

Mar. 31, 2014

Debt Disclosure [Abstract]

Long-term Debt and Borrowing Arrangements

Long-term Debt and Borrowing Arrangements

Long-term and other borrowing arrangements consisted of:

		As of		As of
	Maturity Dates	March 31,		December 31,
		2014		2013
3½% Convertible Notes (a)	October 2014	$	66	$	66
4⅞% Senior Notes	November 2017	300		300
Floating Rate Senior Notes (b)	December 2017	247		247
8¼% Senior Notes (c)	January 2019	691		691
Floating Rate Term Loan (d)	March 2019	988		989
9¾% Senior Notes	March 2020	223		223
6% Euro-denominated Senior Notes	March 2021	638		344
5½% Senior Notes	April 2023	500		500
		3,653		3,360
Other		43		34
Total		3,696		3,394
Less: Short-term debt and current portion of long-term debt		393		89
Long-term debt		$	3,303	$	3,305

__________

^(a)  As of March 31, 2014, the 3½% convertible notes are convertible by the holders into approximately 4 million shares of the Company’s common stock.

^(b)  The interest rate on these notes is equal to three-month LIBOR plus 275 basis points, for an aggregate rate of 3.00% at March 31, 2014; the Company has entered into an interest rate swap to hedge its interest rate exposure related to these notes at an aggregate rate of 3.58%.

^(c)  As of March 31, 2014, the Company called $292 million of the 8¼% Senior Notes due 2019 for redemption; accordingly, these are included in current portion of long-term debt.

^(d)  The floating rate term loan is part of the Company’s senior credit facility, which is secured by pledges of capital stock of certain subsidiaries of the Company, and liens on substantially all of the Company’s intellectual property and certain other real and personal property. As of March 31, 2014, the floating term rate loan due 2019 bears interest at the greater of three-month LIBOR or 0.75%, plus 225 basis points, for an aggregate rate of 3.00%. The Company has entered into a swap to hedge $600 million of its interest rate exposure related to the floating rate term loan at an aggregate rate of 3.96%.

In March 2014, the Company issued €200 million (approximately $275 million) of additional 6% Euro-denominated Senior Notes due 2021. These additional notes were sold at 106.75% of their face value, for aggregate proceeds of approximately $295 million, with a yield to maturity of 4.85%. In April 2014, the Company used the proceeds to repurchase $292 million principal amount of its 8¼% Senior Notes for $316 million plus accrued interest.

COMMITTED CREDIT FACILITIES AND AVAILABLE FUNDING ARRANGEMENTS

At March 31, 2014, the committed corporate credit facilities available to the Company and/or its subsidiaries were as follows:

	Total Capacity		Outstanding Borrowings		Letters of Credit Issued		Available Capacity
Revolving credit facility maturing 2018 (a)	$	1,650	$	—	$	638	$	1,012
Other facilities (b)	13		1		—		12

__________

^(a)  The senior revolving credit facility bears interest at one-month LIBOR, plus 225 basis points. The senior revolving credit facility is part of the Company’s senior credit facility, which is secured by pledges of capital stock of certain subsidiaries of the Company, and liens on substantially all of the Company’s intellectual property and certain other real and personal property.

^(b)  These facilities encompass bank overdraft lines of credit, bearing interest of 5.14% to 5.69% as of March 31, 2014.

At March 31, 2014, the Company had various uncommitted credit facilities available, under which it had drawn approximately $16 million, which bear interest at rates between 0.52% and 2.50%.

DEBT COVENANTS

The agreements governing the Company’s indebtedness contain restrictive covenants, including restrictions on dividends paid to the Company by certain of its subsidiaries, the incurrence of additional indebtedness by the Company and certain of its subsidiaries, acquisitions, mergers, liquidations, and sale and leaseback transactions. The Company’s senior credit facility contains maximum leverage and minimum interest coverage ratio requirements. As of March 31, 2014, the Company was in compliance with the financial covenants of its senior credit facility.

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Commitments and Contingencies

3 Months Ended

Mar. 31, 2014

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Contingencies

In 2006, the Company completed the spin-offs of its Realogy and Wyndham subsidiaries. In connection with the spin-offs, Realogy assumed 62.5% and Wyndham assumed 37.5% of certain contingent and other corporate liabilities of the Company that are not primarily related to any of the respective businesses of Realogy, Wyndham, our former Travelport subsidiary and/or the Company’s vehicle rental operations, and in each case incurred or allegedly incurred on or prior to each subsidiary’s disposition (“Assumed Liabilities”). If Realogy or Wyndham were to default on its payment of costs or expenses to the Company related to any Assumed Liabilities, the Company would be responsible for 50% of the defaulting party’s obligation. The Company does not believe that the impact of any resolution of contingent liabilities constituting Assumed Liabilities should result in a material liability to the Company in relation to its consolidated financial position or liquidity, as Realogy and Wyndham each have agreed to assume responsibility for these liabilities. In accordance with the terms of relevant documents, Realogy posted a letter of credit in April 2007 for the benefit of the Company to cover its estimated share of the Assumed Liabilities discussed above, subject to adjustment, although there can be no assurance that such letter of credit will be sufficient or effective to cover Realogy’s actual obligations if and when they arise.

The Company is also named in various litigation that is primarily related to the businesses of its former subsidiaries, including Realogy, and Wyndham and their current or former subsidiaries. The Company is entitled to indemnification from such entities for any liability resulting from such litigation.

Additionally, the Company is also involved in claims, legal proceedings and governmental inquiries related, among other things, to its vehicle rental operations, including, among others, contract and licensee disputes, wage-and-hour claims, competition matters, employment matters, insurance claims, intellectual property claims and other regulatory, environmental, commercial and tax matters. Litigation is inherently unpredictable and, although the Company believes that its accruals are adequate and/or that it has valid defenses in these matters, unfavorable resolutions could occur, which could materially impact the Company’s financial position, results of operations or cash flows.

Commitments to Purchase Vehicles

The Company maintains agreements with vehicle manufacturers under which the Company has agreed to purchase approximately $5.6 billion of vehicles from manufacturers over the next 12 months. The majority of these commitments are subject to the vehicle manufacturers’ satisfying their obligations under their respective repurchase and guaranteed depreciation agreements. The purchase of such vehicles is financed primarily through the issuance of vehicle-backed debt and cash received upon the disposition of vehicles.

Other Purchase Commitments

In the normal course of business, the Company makes various commitments to purchase other goods or services from specific suppliers, including those related to marketing, advertising and capital expenditures. As of March 31, 2014, the Company had approximately $154 million of purchase obligations, which extend through 2018.

Concentrations

Concentrations of credit risk at March 31, 2014 include (i) risks related to the Company’s repurchase and guaranteed depreciation agreements with domestic and foreign car manufacturers, including Ford, General Motors, Chrysler, Peugeot, Volkswagen, Kia, Fiat, Subaru, BMW and Toyota, and primarily with respect to receivables for program cars that have been disposed but for which the Company has not yet received payment from the manufacturers and (ii) risks related to Realogy and Wyndham, including receivables of $61 million and $37 million, respectively, related to certain contingent, income tax and other corporate liabilities assumed by Realogy and Wyndham in connection with their disposition.

Other Guarantees

The Company has provided certain guarantees to, or for the benefit of, subsidiaries of Realogy, Wyndham and Travelport, which, as previously discussed, were sold or spun-off in 2006. These guarantees relate primarily to various real estate operating leases. The maximum potential amount of future payments that the Company may be required to make under the guarantees relating to these leases is estimated to be approximately $47 million, the majority of which expire by the end of 2015. At March 31, 2014, the liability recorded by the Company in connection with these guarantees was approximately $1 million. To the extent that the Company would be required to perform under any of these guarantees, the Company is entitled to indemnification by Realogy and Wyndham, as applicable. The Company monitors the credit ratings and other relevant information for Realogy and Wyndham in order to assess the status of the payment/performance risk of these guarantees.

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Stock-Based Compensation (Summary Of Share Based Compensation Shares Authorized Under Stock Option Plans By Exercise Price Range) (Detail) In Millions, except Share data in Thousands, unless otherwise specified	3 Months Ended				12 Months Ended
	Mar. 31, 2014 USD ($)		Mar. 31, 2014 EUR (€)		Dec. 31, 2013 USD ($)
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	892	[1]	892	[1]	979
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price	$ 2.88	[1]			$ 2.82
Weighted average contractual life	0		0
Share-based Compensation Arrangements by Share-based Payment Award, Options, Forfeitures in Period, Weighted Average Exercise Price	$ 0.00
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price	$ 0.00
Number of Options	$ 2.56
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value	$ 0		€ 4
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Grant Date Intrinsic Value	$ 0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period	(87)		(87)
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price	$ 2.22
Options outstanding, intrinsic value	41	[1]			37
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term	5 years 0 months 0 days	[1]	5 years 0 months 0 days	[1]	5 years 2 months 0 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures	0		0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number	860		860
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value					$ 40
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term					5 years 0 months 0 days

[1] The Company assumes that substantially all outstanding stock options will vest over time.

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Segment Information (Narrative) (Detail) (USD $) In Millions, unless otherwise specified	1 Months Ended	3 Months Ended
	Apr. 30, 2014	Mar. 31, 2014		Mar. 31, 2013		Dec. 31, 2013
Segment Reporting Information [Line Items]
Sales Revenue, Services, Net		$ 1,862		$ 1,691
Adjusted EBITDA		117	[1]	93	[1]
Non Vehicle Related Depreciation And Amortization		41		34
Interest expense		56		58
Early extinguishment of debt	26	0		40
Transaction-related costs		8		8
Restructuring expense		7	[2]	10	[3]
Assets under vehicle programs		11,323				10,452
Non current deferred tax assets		1,264				1,299
Loss before income taxes		5		(57)
North America
Segment Reporting Information [Line Items]
Sales Revenue, Services, Net		1,236		1,098
Adjusted EBITDA		114		93
Restructuring expense		1
Assets under vehicle programs		8,800		7,900
International
Segment Reporting Information [Line Items]
Sales Revenue, Services, Net		551		517
Adjusted EBITDA		17		17
Restructuring expense		6
Truck Rental [Member]
Segment Reporting Information [Line Items]
Sales Revenue, Services, Net		75		76
Adjusted EBITDA		(2)		(5)
Corporate and Other [Member]
Segment Reporting Information [Line Items]
Sales Revenue, Services, Net		0	[3]	0	[3]
Adjusted EBITDA		$ (12)	[3]	$ (12)	[3]

[1] (b) Amounts reflect the revised definition of Adjusted EBITDA to exclude restructuring expense, which resulted in an increase in Adjusted EBITDA in North America, International and Truck Rental of $3 million, $3 million and $4 million, respectively, in the three months ended March 31, 2013. The realignment of the Company's operating segments had no effect on Adjusted EBITDA for the three months ended March 31, 2013.

[2] (d) During the three months ended March 31, 2014, transaction-related costs primarily comprised of a non-cash charge for re-acquired license rights and acquisition integration expenses. During the three months ended March 31, 2013, transaction-related costs primarily related to the integration of Avis Europe and the acquisition of Zipcar.

[3] (c) Includes unallocated corporate overhead which is not attributable to a particular segment.

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Stock-Based Compensation (Stock Based Compensation Activity) (Detail) (USD $) In Millions, except Share data in Thousands, unless otherwise specified	3 Months Ended			12 Months Ended
	Mar. 31, 2014		Mar. 31, 2013	Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Adjustments to Additional Paid in Capital, Income Tax Benefit from Share-based Compensation			$ 57
Number of Options, Balance	892	[1]		979
Options outstanding, intrinsic value	41	[1]		37
Stock Issued During Period, Value, Restricted Stock Award, Gross	14		14
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term	5 years 0 months 0 days	[1]		5 years 2 months 0 days
Time-Based RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted Average Grant Price, Balance	$ 17.92	[2]
Weighted Average Grant Price, Granted at fair market value	$ 41.15		$ 21.20
Weighted Average Grant Price, Vested/exercised	$ 16.62	[3]
Weighted Average Grant Price, Canceled	$ 23.49
Weighted Average Grant Price, Balance	$ 26.40	[4]
Number of RSUs, Balance	1,308	[2]
Number of RSUs, Granted at fair market value	352
Number of RSUs, Vested/exercised	(588)	[3]
Number of RSUs, Canceled	(56)
Number of RSUs, Balance	1,016	[4]
Performance-Based and Market-Based RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted Average Grant Price, Balance	$ 13.79	[2]
Weighted Average Grant Price, Granted at fair market value	$ 39.37		$ 20.30
Weighted Average Grant Price, Vested/exercised	$ 10.91	[3]
Weighted Average Grant Price, Canceled	$ 21.48
Weighted Average Grant Price, Balance	$ 17.66	[4]
Number of RSUs, Balance	2,043	[2]
Number of RSUs, Granted at fair market value	235
Number of RSUs, Vested/exercised	(432)	[3]
Number of RSUs, Canceled	(32)
Number of RSUs, Balance	1,814	[4]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Outstanding	88
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term	1 year 3 months 0 days
Cash Unit Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted Average Grant Price, Balance	$ 14.90	[2]
Weighted Average Grant Price, Granted at fair market value	$ 0.00		$ 17.14
Weighted Average Grant Price, Vested/exercised	$ 0.00	[3]
Weighted Average Grant Price, Canceled	$ 0.00
Weighted Average Grant Price, Balance	$ 14.90	[4]
Number of RSUs, Balance	267	[2]
Number of RSUs, Granted at fair market value	0
Number of RSUs, Vested/exercised	0	[3]
Number of RSUs, Canceled	0
Number of RSUs, Balance	267	[4]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Outstanding	13
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Outstanding	49
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized	$ 43

[1] The Company assumes that substantially all outstanding stock options will vest over time.

[2] Reflects the maximum number of stock units assuming achievement of all performance-, market- and time-vesting criteria and does not include those for non-employee directors. The weighted-average fair value of time-based RSUs, performance-based and market-based RSUs, and cash units granted in 2013 was $21.20, $20.30 and $17.14, respectively.

[3] The total grant date fair value of RSUs vested during the three months ended March 31, 2014 and 2013 was $14 million and $14 million, respectively.

[4] The Company’s outstanding time-based RSUs, performance-based and market-based RSUs, and cash units had aggregate intrinsic value of $49 million, $88 million and $13 million, respectively. Aggregate unrecognized compensation expense related to time-based RSUs and performance-based and market-based RSUs amounted to $43 million and will be recognized over a weighted average vesting period of 1.3 years. The Company assumes that substantially all outstanding awards will vest over time.

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Restructuring (Narrative) (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2014 Employee		Mar. 31, 2013
Restructuring Cost and Reserve [Line Items]
Number of employees terminated during the period	90
Restructuring Charges	$ 7	[1]	$ 10	[2]
Worldwide Restructuring Initiative [Member]
Restructuring Cost and Reserve [Line Items]
Number of employees terminated during the period	130
Restructuring Charges	7
Restructuring and Related Cost, Expected Cost	$ 15

[1] (d) During the three months ended March 31, 2014, transaction-related costs primarily comprised of a non-cash charge for re-acquired license rights and acquisition integration expenses. During the three months ended March 31, 2013, transaction-related costs primarily related to the integration of Avis Europe and the acquisition of Zipcar.

[2] (c) Includes unallocated corporate overhead which is not attributable to a particular segment.

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Long-Term Debt And Borrowing Arrangements (Narrative) (Detail) In Millions, unless otherwise specified	1 Months Ended	3 Months Ended
	Apr. 30, 2014 USD ($)	Mar. 31, 2014 USD ($)	Mar. 31, 2013 USD ($)	Mar. 31, 2014 Uncommitted Credit Facility [Member] Minimum [Member]	Mar. 31, 2014 Uncommitted Credit Facility [Member] Maximum [Member]	Mar. 31, 2014 Six Euro-Denominated Senior Notes [Member] Senior Notes [Member] USD ($)	Mar. 31, 2014 Six Euro-Denominated Senior Notes [Member] Senior Notes [Member] EUR (€)	Mar. 31, 2014 8 1/4% Notes [Member] Senior Notes [Member] USD ($)
Debt Instrument [Line Items]
Proceeds from issue of senior notes						$ 275	€ 200
Credit facilities bearing interest				0.52%	2.50%
Early extinguishment of debt	26	0	40
Debt Instrument, Repurchased Face Amount								$ 292

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Basis of Presentation and Recently Issued Accounting Pronouncements (Policies)

3 Months Ended

Mar. 31, 2014

Basis Of Presentation And Recently Issued Accounting Pronouncements [Abstract]

Basis of Presentation

Avis Budget Group, Inc. provides car and truck rentals and ancillary services to businesses and consumers worldwide. The accompanying unaudited Consolidated Condensed Financial Statements include the accounts and transactions of Avis Budget Group, Inc. and its subsidiaries (“Avis Budget”), as well as entities in which Avis Budget directly or indirectly has a controlling financial interest (collectively, the “Company”), and have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission for interim financial reporting.

The Company operates the following business segments:

• North America—provides car rentals in the United States and vehicle rentals in Canada, as well as ancillary products and services, and operates the Company’s Zipcar car sharing business in North America.

• International—provides and licenses the Company’s brands to third parties for vehicle rentals and ancillary products and services in Europe, the Middle East, Africa, Asia, South America, Central America, the Caribbean, Australia and New Zealand, and operates the Company's car sharing business in certain of these markets.

• Truck Rental—provides truck rentals and ancillary products and services to consumers and commercial users in the United States.

In conjunction with a change in the Company’s management structure, the financial results of the Company’s Zipcar operations outside of North America will now be reported in the Company’s International segment rather than in the Company’s North America segment. The Company’s business segment financial information presented in these Notes to Consolidated Condensed Financial Statements has been recast to conform with the Company’s current business segment reporting alignment for all periods presented. The Company’s consolidated condensed results were not affected by this change.

In presenting the Consolidated Condensed Financial Statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”), management makes estimates and assumptions that affect the amounts reported and related disclosures. Estimates, by their nature, are based on judgment and available information. Accordingly, actual results could differ from those estimates. In management’s opinion, the Consolidated Condensed Financial Statements contain all adjustments necessary for a fair presentation of interim results reported. The results of operations reported for interim periods are not necessarily indicative of the results of operations for the entire year or any subsequent interim period. These financial statements should be read in conjunction with the Company’s 2013 Annual Report on Form 10-K.

Vehicle Programs

Vehicle Programs. The Company presents separately the financial data of its vehicle programs. These programs are distinct from the Company’s other activities since the assets under vehicle programs are generally funded through the issuance of debt that is collateralized by such assets. The income generated by these assets is used, in part, to repay the principal and interest associated with the debt. Cash inflows and outflows relating to the acquisition of such assets and the principal debt repayment or financing of such assets are classified as activities of the Company’s vehicle programs. The Company believes it is appropriate to segregate the financial data of its vehicle programs because, ultimately, the source of repayment of such debt is the realization of such assets.

Currency Transactions

Currency Transactions. The Company records the gain or loss of foreign-currency transactions on certain intercompany loans and gain or loss on intercompany loan hedges within interest expense related to corporate debt, net. During the three months ended March 31, 2014 and 2013, the Company recorded losses of $2 million and $4 million, respectively, on such items.

Adoption of New Accounting Standards

.

Adoption of New Accounting Standards

On January 1, 2014, the Company adopted, as required, Accounting Standards Update No. 2013-04, “Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligations Is Fixed at the Reporting Date,” which requires companies to measure obligations resulting from joint and several liability arrangements for which the total amount of the obligation is fixed at the reporting date. The adoption of this pronouncement did not have a material impact on the Company’s financial statements.

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Vehicle Rental Activities (Tables)

3 Months Ended

Mar. 31, 2014

Vehicle Rental Activities [Abstract]

Components Of The Company's Vehicles

The components of the Company’s vehicles, net within assets under vehicle programs were as follows:

	As of			As of
	March 31,			December 31,
	2014			2013
Rental vehicles	$	11,657		$	10,234
Less: Accumulated depreciation	(1,388		)	(1,411		)
	10,269			8,823
Vehicles held for sale	348			759
Vehicles, net	$	10,617		$	9,582

Components Of Vehicle Depreciation And Lease Charges

The components of vehicle depreciation and lease charges, net are summarized below:

	Three Months Ended   March 31,
	2014			2013
Depreciation expense	$	407		$	353
Lease charges	37			33
Gain on sales of vehicles, net	(11		)	—
Vehicle depreciation and lease charges, net	$	433		$	386

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Long-Term Debt And Borrowing Arrangements (Schedule Of Long-Term Debt) (Detail) (USD $) In Millions, unless otherwise specified			3 Months Ended					3 Months Ended				3 Months Ended				3 Months Ended				3 Months Ended			3 Months Ended			3 Months Ended					3 Months Ended					3 Months Ended
	Mar. 31, 2014	Dec. 31, 2013	Mar. 31, 2014 Floating Rate Notes [Member]	Mar. 31, 2014 3 1/2% Convertible Notes [Member]		Dec. 31, 2013 3 1/2% Convertible Notes [Member]	Mar. 31, 2014 3 1/2% Convertible Notes [Member] Long Term Borrowings [Member] Convertible Note [Member]	Mar. 31, 2014 Floating Rate Term Loan Due May Two Thousand Sixteen [Member]	Mar. 31, 2014 Four And Seven Over Eight Senior Notes [Member]	Dec. 31, 2013 Four And Seven Over Eight Senior Notes [Member]	Mar. 31, 2014 Four And Seven Over Eight Senior Notes [Member] Long Term Borrowings [Member]	Mar. 31, 2014 8 1/4% Notes [Member]		Dec. 31, 2013 8 1/4% Notes [Member]	Mar. 31, 2014 8 1/4% Notes [Member] Long Term Borrowings [Member]	Mar. 31, 2014 Floating Rate Term Loan Due March Two Thousand Nineteen [Member]		Dec. 31, 2013 Floating Rate Term Loan Due March Two Thousand Nineteen [Member]		Mar. 31, 2014 9 3/4% Notes [Member]	Dec. 31, 2013 9 3/4% Notes [Member]	Mar. 31, 2014 9 3/4% Notes [Member] Long Term Borrowings [Member]	Mar. 31, 2014 Six Euro-Denominated Senior Notes [Member]	Dec. 31, 2013 Six Euro-Denominated Senior Notes [Member]	Mar. 31, 2014 Six Euro-Denominated Senior Notes [Member] Long Term Borrowings [Member]	Mar. 31, 2014 Five And One Over Two Senior Notes [Member]	Mar. 31, 2013 Five And One Over Two Senior Notes [Member]	Mar. 31, 2014 Five And One Over Two Senior Notes [Member] Long Term Borrowings [Member]	Mar. 31, 2014 Long-term Debt [Member]	Dec. 31, 2013 Long-term Debt [Member]	Mar. 31, 2014 Revolving Credit Facility Maturing Two Thousand Sixteen [Member]	Mar. 31, 2014 Senior Notes [Member] Floating Rate Senior Notes Due December 2017 [Member]		Dec. 31, 2013 Senior Notes [Member] Floating Rate Senior Notes Due December 2017 [Member]		Mar. 31, 2014 Senior Notes [Member] 8 1/4% Notes [Member]	Mar. 31, 2014 Senior Notes [Member] Six Euro-Denominated Senior Notes [Member]
Debt Instrument [Line Items]
Repayments of Long-term Debt																																				$ 316
Convertible Senior Note Issuance Price As Percentage Of Face Value																																					106.75%
Debt Instrument, Basis Spread on Variable Rate			3.58%					3.27%								3.96%															3.00%
Convertible number of common stock shares	4
Long-term debt				66	[1]	66			300	300		691	[2]	691		988	[3]	989	[3]	223	223		638	344		500	500		3,653	3,360		247	[4]	247	[4]
Debt instrument stated interest percentage							3.50%				4.875%				8.25%							9.75%			6.00%			5.50%
Other	43	34
Long-term Debt	3,696	3,394
Long-term Debt, Current Maturities	393	89
Long-term debt	3,303	3,305
Maturity Dates				October 2014					November 2017			January 2019				March 2019				March 2020			March 2021			April 2023						December 2017
Proceeds from Issuance of Senior Long-term Debt																																					$ 295
Debt Instrument, Description of Variable Rate Basis			275 basis points													225 basis points															225 basis points
Percentage Of Margin Aggregate Interest Rate																3.00%																3.00%					4.85%

[1] As of March 31, 2014, the 3½% convertible notes are convertible by the holders into approximately 4 million shares of the Company’s common stock.

[2] As of March 31, 2014, the Company called $292 million of the 8¼% Senior Notes due 2019 for redemption; accordingly, these are included in current portion of long-term debt.

[3] The floating rate term loan is part of the Company’s senior credit facility, which is secured by pledges of capital stock of certain subsidiaries of the Company, and liens on substantially all of the Company’s intellectual property and certain other real and personal property. As of March 31, 2014, the floating term rate loan due 2019 bears interest at the greater of three-month LIBOR or 0.75%, plus 225 basis points, for an aggregate rate of 3.00%. The Company has entered into a swap to hedge $600 million of its interest rate exposure related to the floating rate term loan at an aggregate rate of 3.96%.

[4] The interest rate on these notes is equal to three-month LIBOR plus 275 basis points, for an aggregate rate of 3.00% at March 31, 2014; the Company has entered into an interest rate swap to hedge its interest rate exposure related to these notes at an aggregate rate of 3.58%.

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Intangible Assets (Narrative) (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense relating to all intangible assets	$ 7	$ 5
Amortization expense for remainder of the year	25
Intangible assets amortization expense, year one	31
Intangible assets amortization expense, year two	31
Intangible assets amortization expense, year three	31
Intangible assets amortization expense, year four	31
Intangible assets amortization expense, year five	$ 31

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CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Operating activities
Net income (loss)	$ 4	$ (46)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Vehicle depreciation	407	353
Gain on sale of vehicles, net	(11)	0
Non-vehicle related depreciation and amortization	41	34
Amortization of debt financing fees	9	11
Net change in assets and liabilities, excluding the impact of acquisitions and dispositions:
Receivables	(27)	(57)
Income taxes and deferred income taxes	1	(21)
Accounts payable and other current liabilities	(71)	(35)
Other, net	37	61
Net cash provided by operating activities	390	300
Investing activities
Property and equipment additions	(36)	(21)
Proceeds received on asset sales	3	4
Net assets acquired (net of cash acquired)	(124)	(476)
Other, net	(7)	26
Net cash used in investing activities exclusive of vehicle programs	(164)	(467)
Vehicle programs:
Decrease (increase) in program cash	12	(24)
Investment in vehicles	(3,275)	(3,111)
Proceeds received on disposition of vehicles	2,470	2,394
Net cash used in investing activities of vehicle programs	(793)	(741)
Net cash used in investing activities	(957)	(1,208)
Financing activities
Proceeds from long-term borrowings	295	1,225
Payments on long-term borrowings	(5)	(788)
Net change in short-term borrowings	11	(31)
Purchases of warrants	0	(28)
Proceeds from sale of call options	0	37
Repurchases of common stock	(67)	0
Debt financing fees	(5)	(10)
Other, net	(1)	2
Net cash provided by financing activities exclusive of vehicle programs	228	407
Vehicle programs:
Proceeds from borrowings	3,775	3,762
Payments on borrowings	(3,280)	(3,279)
Debt financing fees	(7)	(17)
Net cash provided by financing activities of vehicle programs	488	466
Net cash provided by financing activities	716	873
Effect of changes in exchange rates on cash and cash equivalents	(1)	(2)
Net increase (decrease) in cash and cash equivalents	148	(37)
Cash and cash equivalents, beginning of period	693	606
Cash and cash equivalents, end of period	$ 841	$ 569

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Intangible Assets

3 Months Ended

Mar. 31, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

Intangible Assets

Intangible assets consisted of:

	As of March 31, 2014						As of December 31, 2013
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Amortized Intangible Assets
License agreements (a)(b)	$	280	$	55	$	225	$	272	$	52	$	220
Customer relationships (a)	177		39		138		166		35		131
Other	2		1		1		2		1		1
Total	$	459	$	95	$	364	$	440	$	88	$	352
Unamortized Intangible Assets
Goodwill (a)(b)	$	713					$	691
Trademarks	$	568					$	571

__________

^(a)  The increases in carrying amounts reflect the acquisition of the Budget licensee for Edmonton.

^(b)  The increases in carrying amounts reflect the reacquired right to operate the Budget brand in Portugal.

Amortization expense relating to all intangible assets was approximately $7 million and $5 million during first quarter 2014 and 2013, respectively. Based on the Company’s amortizable assets at March 31, 2014, the Company expects amortization expense of approximately $25 million for the remainder of 2014 and approximately $31 million for each of the five fiscal years thereafter.

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Stockholders' Equity (Narrative) (Detail) (USD $) In Millions, except Share data in Thousands, unless otherwise specified	0 Months Ended	1 Months Ended	3 Months Ended
	Aug. 06, 2013	Apr. 30, 2014	Mar. 31, 2014
Equity [Abstract]
Net unrealized gain (losses) on cash flow hedges, before tax			$ 1
Stockholders Equity [Line Items]
Stock Repurchase Program, Authorized Amount	200	235
Stock Repurchased During Period, Shares			1,635
Stock Repurchased During Period, Value			$ 75

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Guarantor And Non-Guarantor Consolidating Condensed Financial Statements (Consolidating Condensed Statements Of Cash Flows) (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Supplemental Guarantor Financial Information [Line Items]
Net cash provided by (used in) operating activities	$ 390	$ 300
Property and equipment additions	(36)	(21)
Proceeds received on asset sales	3	4
Payments to Acquire Restricted Investments	(124)	(476)
Proceeds from (Repayments of) Related Party Debt		0
Other, net	(7)	26
Net cash used in investing activities exclusive of vehicle programs	(164)	(467)
Decrease (increase) in program cash	12	(24)
Investment in vehicles	(3,275)	(3,111)
Proceeds received on disposition of vehicles	2,470	2,394
Net cash used in investing activities of vehicle programs	(793)	(741)
Net cash used in investing activities	(957)	(1,208)
Proceeds from long-term borrowings	295	1,225
Principal payments on borrowings	(5)	(788)
Net change in short-term borrowings	11	(31)
Purchase of warrants	0	(28)
Proceeds from sale of call options	0	37
Repurchases of common stock	(67)	0
Net intercompany transactions		0
Debt financing fees	(5)	(10)
Other, net	(1)	2
Net cash provided by financing activities exclusive of vehicle programs	228	407
Proceeds from borrowings	3,775	3,762
Principal payments on borrowings	(3,280)	(3,279)
Debt financing fees	(7)	(17)
Net cash provided by financing activities of vehicle programs	488	466
Net cash provided by financing activities	716	873
Effect of changes in exchange rates on cash and cash equivalents	(1)	(2)
Net increase (decrease) in cash and cash equivalents	148	(37)
Cash and cash equivalents, beginning of period	693	606
Cash and cash equivalents, end of period	841	569
Parent [Member]
Supplemental Guarantor Financial Information [Line Items]
Net cash provided by (used in) operating activities	2	(17)
Property and equipment additions	0	0
Proceeds received on asset sales	0	0
Payments to Acquire Restricted Investments	0	0
Proceeds from (Repayments of) Related Party Debt		0
Other, net	57	96
Net cash used in investing activities exclusive of vehicle programs	57	96
Decrease (increase) in program cash	0	0
Investment in vehicles	0	0
Proceeds received on disposition of vehicles	0	0
Net cash used in investing activities of vehicle programs	0	0
Net cash used in investing activities	57	96
Proceeds from long-term borrowings	0	0
Principal payments on borrowings	0	(89)
Net change in short-term borrowings	0	0
Purchase of warrants		(28)
Proceeds from sale of call options		37
Repurchases of common stock	(67)
Net intercompany transactions		0
Debt financing fees	0	0
Other, net	(1)	2
Net cash provided by financing activities exclusive of vehicle programs	(68)	(78)
Proceeds from borrowings	0	0
Principal payments on borrowings	0	0
Debt financing fees	0	0
Net cash provided by financing activities of vehicle programs	0	0
Net cash provided by financing activities	(68)	(78)
Effect of changes in exchange rates on cash and cash equivalents	0	0
Net increase (decrease) in cash and cash equivalents	(9)	1
Cash and cash equivalents, beginning of period	14	5
Cash and cash equivalents, end of period	5	6
Subsidiary Issuers [Member]
Supplemental Guarantor Financial Information [Line Items]
Net cash provided by (used in) operating activities	284	(59)
Property and equipment additions	(3)	(5)
Proceeds received on asset sales	2	2
Payments to Acquire Restricted Investments	0	(513)
Proceeds from (Repayments of) Related Party Debt		70
Other, net	(7)	(1)
Net cash used in investing activities exclusive of vehicle programs	(8)	(447)
Decrease (increase) in program cash	0	0
Investment in vehicles	(1)	(1)
Proceeds received on disposition of vehicles	3	1
Net cash used in investing activities of vehicle programs	2	0
Net cash used in investing activities	(6)	(447)
Proceeds from long-term borrowings	0	1,225
Principal payments on borrowings	(4)	(698)
Net change in short-term borrowings	0	0
Purchase of warrants		0
Proceeds from sale of call options		0
Repurchases of common stock	0
Net intercompany transactions		0
Debt financing fees	0	(10)
Other, net	(57)	(96)
Net cash provided by financing activities exclusive of vehicle programs	(61)	421
Proceeds from borrowings	0	0
Principal payments on borrowings	0	0
Debt financing fees	0	0
Net cash provided by financing activities of vehicle programs	0	0
Net cash provided by financing activities	(61)	421
Effect of changes in exchange rates on cash and cash equivalents	0	0
Net increase (decrease) in cash and cash equivalents	217	(85)
Cash and cash equivalents, beginning of period	242	102
Cash and cash equivalents, end of period	459	17
Guarantor Subsidiaries [Member]
Supplemental Guarantor Financial Information [Line Items]
Net cash provided by (used in) operating activities	14	(25)
Property and equipment additions	(17)	(10)
Proceeds received on asset sales	0	0
Payments to Acquire Restricted Investments	0	16
Proceeds from (Repayments of) Related Party Debt		0
Other, net	0	28
Net cash used in investing activities exclusive of vehicle programs	(17)	34
Decrease (increase) in program cash	0	0
Investment in vehicles	(8)	0
Proceeds received on disposition of vehicles	0	0
Net cash used in investing activities of vehicle programs	(8)	0
Net cash used in investing activities	(25)	34
Proceeds from long-term borrowings	0	0
Principal payments on borrowings	(1)	(1)
Net change in short-term borrowings	0	0
Purchase of warrants		0
Proceeds from sale of call options		0
Repurchases of common stock	0
Net intercompany transactions		0
Debt financing fees	0	0
Other, net	0	0
Net cash provided by financing activities exclusive of vehicle programs	(1)	(1)
Proceeds from borrowings	0	0
Principal payments on borrowings	0	0
Debt financing fees	0	0
Net cash provided by financing activities of vehicle programs	0	0
Net cash provided by financing activities	(1)	(1)
Effect of changes in exchange rates on cash and cash equivalents	0	0
Net increase (decrease) in cash and cash equivalents	(12)	8
Cash and cash equivalents, beginning of period	12	0
Cash and cash equivalents, end of period	0	8
Non-Guarantor Subsidiaries [Member]
Supplemental Guarantor Financial Information [Line Items]
Net cash provided by (used in) operating activities	90	401
Property and equipment additions	(16)	(6)
Proceeds received on asset sales	1	2
Payments to Acquire Restricted Investments	(124)	21
Proceeds from (Repayments of) Related Party Debt		0
Other, net	0	(1)
Net cash used in investing activities exclusive of vehicle programs	(139)	16
Decrease (increase) in program cash	12	(24)
Investment in vehicles	(3,266)	(3,110)
Proceeds received on disposition of vehicles	2,467	2,393
Net cash used in investing activities of vehicle programs	(787)	(741)
Net cash used in investing activities	(926)	(725)
Proceeds from long-term borrowings	295	0
Principal payments on borrowings	0	0
Net change in short-term borrowings	11	(31)
Purchase of warrants		0
Proceeds from sale of call options		0
Repurchases of common stock	0
Net intercompany transactions		(70)
Debt financing fees	(5)	0
Other, net	0	0
Net cash provided by financing activities exclusive of vehicle programs	301	(101)
Proceeds from borrowings	3,775	3,762
Principal payments on borrowings	(3,280)	(3,279)
Debt financing fees	(7)	(17)
Net cash provided by financing activities of vehicle programs	488	466
Net cash provided by financing activities	789	365
Effect of changes in exchange rates on cash and cash equivalents	(1)	(2)
Net increase (decrease) in cash and cash equivalents	(48)	39
Cash and cash equivalents, beginning of period	425	499
Cash and cash equivalents, end of period	377	538
Eliminations [Member]
Supplemental Guarantor Financial Information [Line Items]
Net cash provided by (used in) operating activities	0	0
Property and equipment additions	0	0
Proceeds received on asset sales	0	0
Payments to Acquire Restricted Investments	0	0
Proceeds from (Repayments of) Related Party Debt		(70)
Other, net	(57)	(96)
Net cash used in investing activities exclusive of vehicle programs	(57)	(166)
Decrease (increase) in program cash	0	0
Investment in vehicles	0	0
Proceeds received on disposition of vehicles	0	0
Net cash used in investing activities of vehicle programs	0	0
Net cash used in investing activities	(57)	(166)
Proceeds from long-term borrowings	0	0
Principal payments on borrowings	0	0
Net change in short-term borrowings	0	0
Purchase of warrants		0
Proceeds from sale of call options		0
Repurchases of common stock	0
Net intercompany transactions		70
Debt financing fees	0	0
Other, net	57	96
Net cash provided by financing activities exclusive of vehicle programs	57	166
Proceeds from borrowings	0	0
Principal payments on borrowings	0	0
Debt financing fees	0	0
Net cash provided by financing activities of vehicle programs	0	0
Net cash provided by financing activities	57	166
Effect of changes in exchange rates on cash and cash equivalents	0	0
Net increase (decrease) in cash and cash equivalents	0	0
Cash and cash equivalents, beginning of period	0	0
Cash and cash equivalents, end of period	$ 0	$ 0

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Long-term Debt and Borrowing Arrangements (Tables)

3 Months Ended

Mar. 31, 2014

Debt Disclosure [Abstract]

Schedule Of Long-Term Debt

Long-term and other borrowing arrangements consisted of:

		As of		As of
	Maturity Dates	March 31,		December 31,
		2014		2013
3½% Convertible Notes (a)	October 2014	$	66	$	66
4⅞% Senior Notes	November 2017	300		300
Floating Rate Senior Notes (b)	December 2017	247		247
8¼% Senior Notes (c)	January 2019	691		691
Floating Rate Term Loan (d)	March 2019	988		989
9¾% Senior Notes	March 2020	223		223
6% Euro-denominated Senior Notes	March 2021	638		344
5½% Senior Notes	April 2023	500		500
		3,653		3,360
Other		43		34
Total		3,696		3,394
Less: Short-term debt and current portion of long-term debt		393		89
Long-term debt		$	3,303	$	3,305

__________

^(a)  As of March 31, 2014, the 3½% convertible notes are convertible by the holders into approximately 4 million shares of the Company’s common stock.

^(b)  The interest rate on these notes is equal to three-month LIBOR plus 275 basis points, for an aggregate rate of 3.00% at March 31, 2014; the Company has entered into an interest rate swap to hedge its interest rate exposure related to these notes at an aggregate rate of 3.58%.

^(c)  As of March 31, 2014, the Company called $292 million of the 8¼% Senior Notes due 2019 for redemption; accordingly, these are included in current portion of long-term debt.

^(d)  The floating rate term loan is part of the Company’s senior credit facility, which is secured by pledges of capital stock of certain subsidiaries of the Company, and liens on substantially all of the Company’s intellectual property and certain other real and personal property. As of March 31, 2014, the floating term rate loan due 2019 bears interest at the greater of three-month LIBOR or 0.75%, plus 225 basis points, for an aggregate rate of 3.00%. The Company has entered into a swap to hedge $600 million of its interest rate exposure related to the floating rate term loan at an aggregate rate of 3.96%.

Schedule Of Committed Credit Facilities

At March 31, 2014, the committed corporate credit facilities available to the Company and/or its subsidiaries were as follows:

	Total Capacity		Outstanding Borrowings		Letters of Credit Issued		Available Capacity
Revolving credit facility maturing 2018 (a)	$	1,650	$	—	$	638	$	1,012
Other facilities (b)	13		1		—		12

__________

^(a)  The senior revolving credit facility bears interest at one-month LIBOR, plus 225 basis points. The senior revolving credit facility is part of the Company’s senior credit facility, which is secured by pledges of capital stock of certain subsidiaries of the Company, and liens on substantially all of the Company’s intellectual property and certain other real and personal property.

^(b)  These facilities encompass bank overdraft lines of credit, bearing interest of 5.14% to 5.69% as of March 31, 2014.

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Earnings Per Share (Outstanding Common Stock Equivalents That Were Anti-Dilutive) (Parenthetical) (Detail) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive shares		3.4
Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive shares		1.5
Warrants [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive shares		4.7
Convertible Debt Securities [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive shares	4.0	4.7

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Subsequent Events

3 Months Ended

Mar. 31, 2014

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

In April 2014, the Company's Board of Directors authorized a $235 million increase to the Company's share repurchase program.

In April 2014, the Company used proceeds from its issuance of €200 million of additional 6% Euro-denominated Senior Notes to repurchase $292 million principal amount of its 8¼% Senior Notes. In connection with this repurchase, the Company expects to record debt extinguishment costs of approximately $26 million.