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 June 30, 2018

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, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act.

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

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 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 79,194,210 shares as of July 31, 2018.

Table of Contents

		Page
PART I	Financial Information
Item 1.	Financial Statements
	Consolidated Condensed Statements of Comprehensive Income for the Three and Six Months Ended June 30, 2018 and 2017 (Unaudited)	3
	Consolidated Condensed Balance Sheets as of June 30, 2018 and December 31, 2017 (Unaudited)	4
	Consolidated Condensed Statements of Cash Flows for the Six Months Ended June 30, 2018 and 2017 (Unaudited)	5
	Notes to Consolidated Condensed Financial Statements (Unaudited)	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	37
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	47
Item 4.	Controls and Procedures	47
PART II	Other Information
Item 1.	Legal Proceedings	48
Item 1A.	Risk Factors	48
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	48
Item 6.	Exhibits	48
	Signatures	49

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 or disruptions 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;

• 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 successfully implement our business strategies, achieve and maintain cost savings and adapt our business to changes in mobility;

• 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, civil unrest or political instability in the locations in which we operate;

• our ability to conform to multiple and conflicting laws or regulations in the countries 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 dependence on the performance and retention of our senior management and key employees;

• 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 or unpaid claims in excess of historical levels;

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• risks associated with litigation, governmental or regulatory inquiries, or any failure or inability to comply with laws, regulations or contractual obligations or any changes in laws, regulations or contractual obligations, including with respect to personal identifiable information and consumer privacy, labor and employment, and tax;

• any impact on us from the actions of our licensees, dealers, third party vendors 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;

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

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

• risks related to protecting the integrity of, and preventing unauthorized access to, our information technology systems or those of our third party vendors, and protecting the confidential information of our employees and customers against security breaches, including physical or cyber-security breaches, attacks, or other disruptions; 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 2017 Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 22, 2018 (the “2017 Form 10-K”), could cause actual results to differ materially from those projected in any forward-looking statements.

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. 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   June 30,					Six Months Ended   June 30,
		2018			2017		2018			2017
Revenues		$	2,328		$	2,238	$	4,296		$	4,077
Expenses
	Operating	1,175			1,108		2,267			2,157
	Vehicle depreciation and lease charges, net	591			597		1,106			1,101
	Selling, general and administrative	321			293		617			555
	Vehicle interest, net	80			73		152			137
	Non-vehicle related depreciation and amortization	67			65		128			128
	Interest expense related to corporate debt, net:
	Interest expense	49			48		95			97
	Early extinguishment of debt	—			—		5			3
	Restructuring and other related charges	4			38		10			45
	Transaction-related costs, net	3			5		7			8
Total expenses		2,290			2,227		4,387			4,231
Income (loss) before income taxes		38			11		(91		)	(154		)
Provision for (benefit from) income taxes		12			8		(30		)	(50		)
Net income (loss)		$	26		$	3	$	(61	)	$	(104	)
Comprehensive income (loss)		$	(24	)	$	51	$	(103	)	$	(28	)
Earnings (loss) per share
	Basic	$	0.33		$	0.04	$	(0.75	)	$	(1.22	)
	Diluted	$	0.32		$	0.04	$	(0.75	)	$	(1.22	)

See Notes to Consolidated Condensed Financial Statements (Unaudited).

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Avis Budget Group, Inc.

CONSOLIDATED CONDENSED BALANCE SHEETS

(In millions, except par value)

(Unaudited)

		June 30,   2018			December 31,    2017
Assets
Current assets:
	Cash and cash equivalents	$	489		$	611
	Receivables, net	902			922
	Other current assets	832			533
Total current assets		2,223			2,066
Property and equipment, net		715			704
Deferred income taxes		1,120			931
Goodwill		1,049			1,073
Other intangibles, net		843			850
Other non-current assets		243			196
Total assets exclusive of assets under vehicle programs		6,193			5,820
Assets under vehicle programs:
	Program cash	161			283
	Vehicles, net	13,867			10,626
	Receivables from vehicle manufacturers and other	253			547
	Investment in Avis Budget Rental Car Funding (AESOP) LLC—related party	445			423
		14,726			11,879
Total assets		$	20,919		$	17,699
Liabilities and stockholders’ equity
Current liabilities:
	Accounts payable and other current liabilities	$	1,832		$	1,619
	Short-term debt and current portion of long-term debt	24			26
Total current liabilities		1,856			1,645
Long-term debt		3,544			3,573
Other non-current liabilities		745			717
Total liabilities exclusive of liabilities under vehicle programs		6,145			5,935
Liabilities under vehicle programs:
	Debt	3,511			2,741
	Debt due to Avis Budget Rental Car Funding (AESOP) LLC—related party	8,265			6,480
	Deferred income taxes	1,727			1,594
	Other	899			376
		14,402			11,191
Commitments and contingencies (Note 13)
Stockholders’ equity:
	Preferred stock, $0.01 par value—authorized 10 shares; none issued and outstanding, at each date	—			—
	Common stock, $0.01 par value—authorized 250 shares; issued 137 shares, at each date	1			1
	Additional paid-in capital	6,779			6,820
	Accumulated deficit	(1,316		)	(1,222		)
	Accumulated other comprehensive loss	(72		)	(24		)
	Treasury stock, at cost—57 and 56 shares, respectively	(5,020		)	(5,002		)
Total stockholders’ equity		372			573
Total liabilities and stockholders’ equity		$	20,919		$	17,699

See Notes to Consolidated Condensed Financial Statements (Unaudited).

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Avis Budget Group, Inc.

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS

(In millions)

(Unaudited)

			Six Months Ended   June 30,
			2018			2017
Operating activities
Net loss			$	(61	)	$	(104	)
Adjustments to reconcile net loss to net cash provided by operating activities:
	Vehicle depreciation		996			953
	(Gain) loss on sale of vehicles, net		(10		)	51
	Non-vehicle related depreciation and amortization		128			128
	Stock-based compensation		12			7
	Amortization of debt financing fees		13			17
	Early extinguishment of debt costs		5			3
	Net change in assets and liabilities:
		Receivables	(68		)	(36		)
		Income taxes and deferred income taxes	(49		)	(91		)
		Accounts payable and other current liabilities	141			112
	Other, net		14			99
Net cash provided by operating activities			1,121			1,139
Investing activities
Property and equipment additions			(115		)	(86		)
Proceeds received on asset sales			6			4
Net assets acquired (net of cash acquired)			(28		)	(14		)
Other, net			(37		)	—
Net cash used in investing activities exclusive of vehicle programs			(174		)	(96		)
Vehicle programs:
	Investment in vehicles		(8,359		)	(8,116		)
	Proceeds received on disposition of vehicles		4,807			5,059
	Investment in debt securities of Avis Budget Rental Car Funding (AESOP) LLC—related party		(22		)	(33		)
			(3,574		)	(3,090		)
Net cash used in investing activities			(3,748		)	(3,186		)

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Avis Budget Group, Inc. CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Continued) (In millions) (Unaudited)
		Six Months Ended   June 30,
		2018			2017
Financing activities
Proceeds from long-term borrowings		81			589
Payments on long-term borrowings		(94		)	(591		)
Net change in short-term borrowings		(2		)	(1		)
Repurchases of common stock		(78		)	(109		)
Debt financing fees		(9		)	(8		)
Other, net		2			—
Net cash used in financing activities exclusive of vehicle programs		(100		)	(120		)
Vehicle programs:
	Proceeds from borrowings	10,145			11,255
	Payments on borrowings	(7,643		)	(8,988		)
	Debt financing fees	(13		)	(8		)
		2,489			2,259
Net cash provided by financing activities		2,389			2,139
Effect of changes in exchange rates on cash and cash equivalents, program and restricted cash		(2		)	36
Net (decrease) increase in cash and cash equivalents, program and restricted cash		(240		)	128
Cash and cash equivalents, program and restricted cash, beginning of period		901			720
Cash and cash equivalents, program and restricted cash, end of period		$	661		$	848

See Notes to Consolidated Condensed Financial Statements (Unaudited).

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

The Company operates the following reportable business segments:

• Americas—consisting primarily of (i) vehicle rental operations in North America, South America, Central America and the Caribbean, (ii) car sharing operations in certain of these markets, and (iii) licensees in the areas in which the Company does not operate directly.

• International—consisting primarily of (i) vehicle rental operations in Europe, the Middle East, Africa, Asia and Australasia, (ii) car sharing operations in certain of these markets, and (iii) licensees in the areas in which the Company does not operate directly.

The operating results of acquired businesses are included in the accompanying Consolidated Condensed Financial Statements from the dates of acquisition. The fair value of the assets acquired and liabilities assumed in connection with the Company’s fourth quarter 2017 acquisitions of ACL Hire Limited and various licensees in Europe and North America have not yet been finalized; however, there have been no significant changes to the preliminary allocation of the purchase price during the six months ended June 30, 2018.

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 2017 Form 10-K.

Summary of Significant Accounting Policies

The Company’s significant accounting policies are fully described in Note 2, “Summary of Significant Accounting Policies,” in the Company’s Annual Report on Form 10-K for fiscal year 2017.

Reclassifications. Certain reclassifications have been made to prior years’ Consolidated Condensed Financial Statements to conform to the current year presentation. These reclassifications have no impact on reported net income (loss) (see “Adoption of New Accounting Pronouncements” below).

As of December 31, 2017, the Company elected to adopt the provisions of ASU 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash,” early on a retrospective basis. ASU 2016-18 clarifies guidance on the classification and presentation of restricted cash in the statement of cash flows. The following table provides the impact of adoption on the Company’s Consolidated Condensed Statements of Cash Flows for the six months ended June 30, 2017.

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	Six Months Ended June 30, 2017
	As Previously Reported			Effect of Change			As Adjusted
Decrease in program cash	$	168		$	(168	)	$	—
Other, net	(1		)	1			—
Net cash used in investing activities	(3,019		)	(167		)	(3,186		)
Effect of changes in exchange rates on cash and cash equivalents, program and restricted cash	27			9			36
Net increase in cash and cash equivalents, program and restricted cash	286			(158		)	128
Cash and cash equivalents, program and restricted cash, beginning of period	490			230			720
Cash and cash equivalents, program and restricted cash, end of period	$	776		$	72		$	848

Restricted Cash. Program cash primarily represents amounts specifically designated to purchase assets under vehicle programs and/or to repay the related debt, as such the Company considers it a restricted cash equivalent. The following table provides a reconciliation of cash and cash equivalents, program and restricted cash reported within the Consolidated Condensed Balance Sheets to the amounts shown in the Consolidated Condensed Statements of Cash Flows.

	As of June 30,
	2018		2017
Cash and cash equivalents	$	489	$	776
Program cash	161		65
Restricted cash (a)	11		7
Total cash and cash equivalents, program and restricted cash	$	661	$	848

________

^(a)  Included within other current assets.

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

Transaction-related costs, net. Transaction-related costs, net are classified separately in the Consolidated Condensed Statements of Comprehensive Income. These costs are comprised of expenses related to acquisition-related activities such as due diligence and other advisory costs, expenses related to the integration of the acquiree’s operations with those of the Company, including the implementation of best practices and process improvements, non-cash gains and losses related to re-acquired rights, expenses related to pre-acquisition contingencies and contingent consideration related to acquisitions.

Currency Transactions. The Company records the gain or loss on foreign-currency transactions on certain intercompany loans and the gain or loss on intercompany loan hedges within interest expense related to corporate debt, net. During the three and six months ended June 30, 2018 and 2017, the Company recorded an immaterial amount in each period.

Adoption of New Accounting Pronouncements

Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income

On January 1, 2018, as a result of a new accounting pronouncement, the Company early adopted ASU 2018-02, “Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income,” which allows a reclassification from accumulated other comprehensive income to retained earnings for the adjustment of deferred taxes due to the reduction of the corporate income tax rate as a result of U.S. tax reform. Accordingly, the Company has reclassified $4

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million of net tax benefits from accumulated other comprehensive loss to beginning accumulated deficit related to the following (see Note 14 - Stockholders’ Equity). Prior period amounts have not been retrospectively adjusted.

Currency Translation Adjustments		Net Unrealized Gains (Losses) on Cash Flow Hedges		Net Unrealized Gains (Losses) on Available-for Sale Securities		Minimum Pension Liability Adjustment			Accumulated Other Comprehensive Income (Loss)
$	7	$	1	$	—	$	(12	)	$	(4	)

Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost

On January 1, 2018, as a result of a new accounting pronouncement, the Company adopted ASU 2017-07, “Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Costs and Net Periodic Postretirement Benefit Cost,” which requires an entity to disaggregate the components of net benefit cost recognized in its consolidated statements of operations. The adoption of this accounting pronouncement did not have a material impact on the Company’s Consolidated Condensed Financial Statements.

Recognition and Measurement of Financial Assets and Financial Liabilities

On January 1, 2018, as a result of a new accounting pronouncement, the Company adopted ASU 2016-01, “Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities,” which makes limited amendments to the classification and measurement of financial instruments. The amendments supersede the guidance to classify equity securities with readily determinable fair values into different categories (trading or available-for-sale) and require equity securities (including other ownership interests, such as partnerships, unincorporated joint ventures, and limited liability companies) to be measured at fair value with changes in the fair value recognized through net income. Accordingly, the Company has reclassified $2 million of net unrealized gains associated with available for sale equity securities from accumulated other comprehensive loss to beginning accumulated deficit (see Note 14 - Stockholders’ Equity). This ASU has no impact on the Company’s accounting for equity method investments.

Intra-Entity Transfers of Assets Other Than Inventory

On January 1, 2018, as a result of a new accounting pronouncement, the Company adopted ASU 2016-16, “Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory,” which removes the prohibition in Topic 740 against the immediate recognition of the current and deferred income tax effects of intra-entity transfers of assets other than inventory. The adoption of this accounting pronouncement did not have an impact on the Company’s Consolidated Condensed Financial Statements.

Revenue from Contracts with Customers

On January 1, 2018, as a result of a new accounting pronouncement, the Company adopted ASU 2014-09, “Revenue from Contracts with Customers (Topic 606),” which outlines a single model for entities to use in accounting for revenue arising from contracts with customers and supersedes current revenue recognition guidance. The new guidance applies to all contracts with customers except for leases, insurance contracts, financial instruments, certain nonmonetary exchanges and certain guarantees. Also, additional disclosures are required about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments. The Company has adopted the requirements of the new standard on a modified retrospective basis applied to all contracts. Prior periods have not been retrospectively adjusted. As discussed in Leases below, the Company’s rental related revenues will be accounted for under Topic 606 until the adoption of ASU 2016-02, “Leases (Topic 842)” on January 1, 2019. Under Topic 606, each transaction that generates customer loyalty points results in the deferral of revenue generally equivalent to the estimated retail value of points expected to be redeemed. The associated revenue will be recognized at the time the customer redeems the loyalty points. Previously, the Company did not defer revenue and recorded an expense associated with the incremental cost of providing the future rental at the time when the loyalty points were earned. In the Company’s Consolidated Condensed Balance Sheet at January 1, 2018, customer loyalty program liability increased approximately $50 million related to the estimated retail value of customer loyalty points earned, with a corresponding increase to

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accumulated deficit (approximately $40 million, net of tax) due to the cumulative impact of adopting Topic 606. Certain customers may receive cash-based rebates, which are accounted for as variable consideration under Topic 606. The Company estimates these rebates based on the expected amount to be provided to customers and reduces revenue recognized.

The impact of adoption of Topic 606 on the Company’s Consolidated Condensed Statement of Comprehensive Income for the three months ended June 30, 2018 was not material. The impact of adoption of Topic 606 on the Company’s Consolidated Condensed Statement of Comprehensive Income for the six months ended June 30, 2018 and Consolidated Condensed June 30, 2018 Balance Sheet was as follows:

	Six Months Ended June 30, 2018
	As Reported			Balances without Adoption of Topic 606			Effect of Change
Consolidated Condensed Statement of Comprehensive Income
Revenues	$	4,296		$	4,303		$	(7	)
Expenses
Operating	2,267			2,268			(1		)
Total expenses	4,387			4,388			(1		)
Loss before income taxes	(91		)	(85		)	(6		)
Benefit from income taxes	(30		)	(28		)	(2		)
Net loss	$	(61	)	$	(57	)	$	(4	)
Comprehensive loss	$	(103	)	$	(99	)	$	(4	)
	June 30, 2018
	As Reported			Balances without Adoption of Topic 606			Effect of Change
Consolidated Condensed Balance Sheet
Deferred income taxes	$	1,120		$	1,108		$	12
Total assets exclusive of assets under vehicle programs	6,193			6,181			12
Total assets	20,919			20,907			12
Accounts payable and other current liabilities	1,832			1,826			6
Total current liabilities	1,856			1,850			6
Other non-current liabilities	745			695			50
Total liabilities exclusive of liabilities under vehicle programs	6,145			6,095			50
Accumulated deficit	(1,316		)	(1,272		)	(44		)
Total stockholders’ equity	$	372		$	416		$	(44	)

Recently Issued Accounting Pronouncements

Nonemployee Share-Based Payment Accounting

In June 2018, the Financial Accounting Standards Board (“FASB”) issued ASU 2018-07, “Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting,” which simplifies the accounting for share-based payments granted to nonemployees for goods and services and aligns most of the guidance on such payments to nonemployees with the requirements for share-based payments granted to employees. ASU 2018-07 becomes effective for the Company on January 1, 2019. Early adoption is permitted. The adoption of this accounting pronouncement is not expected to have an impact on the Company's Consolidated Condensed Financial Statements.

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Accounting for Hedging Activities

In August 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities,” which amends the existing guidance to allow companies to more accurately present the economic results of an entity’s risk management activities in the financial statements. ASU 2017-12 becomes effective for the Company on January 1, 2019. Early adoption is permitted. The Company is currently evaluating the effect of this accounting pronouncement on its Consolidated Condensed Financial Statements.

Measurement of Credit Losses on Financial Instruments

In June 2016, the FASB issued ASU 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which sets forth a current expected credit loss impairment model for financial assets that replaces the current incurred loss model. This model requires a financial asset (or group of financial assets), including trade receivables, measured at amortized cost to be presented at the net amount expected to be collected with an allowance for credit losses deducted from the amortized cost basis. The allowance for credit losses should reflect management’s current estimate of credit losses that are expected to occur over the remaining life of a financial asset. ASU 2016-13 becomes effective for the Company on January 1, 2020. Early adoption is permitted as of January 1, 2019. The adoption of this accounting pronouncement is not expected to have a material impact on the Company's Consolidated Condensed Financial Statements.

Leases

In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842),” which requires a lessee to recognize all long-term leases on its balance sheet as a liability for its lease obligation, measured at the present value of lease payments not yet paid, and a corresponding asset representing its right to use the underlying asset over the lease term and expands disclosure of key information about leasing arrangements. The ASU does not significantly change a lessee’s recognition, measurement and presentation of expenses and cash flows. Additionally, ASU 2016-02 aligns key aspects of lessor accounting with the new revenue recognition guidance in Topic 606 (see Revenue from Contracts with Customers above). In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach which includes a number of optional practical expedients that entities may elect to apply. In July 2018, the FASB issued ASU 2018-11, “Leases (Topic 842): Targeted Improvements,” which provides an additional transition method allowing entities to only apply the new lease standard in the year of adoption. Additionally, ASU 2018-11 provides a practical expedient for lessors to combine nonlease components with related lease components if certain conditions are met. These ASUs become effective for the Company on January 1, 2019. Early adoption is permitted.

The Company is in the process of evaluating and planning for the implementation of these ASUs, including assessing its overall impact, and expects most of its operating lease commitments will be subject to the new standard and recognized as operating lease liabilities and right-of-use assets upon adoption, which will materially increase total assets and total liabilities relative to such amounts prior to adoption. The Company has determined portions of its vehicle rental contracts that convey the right to control the use of identified assets are within the scope of the accounting guidance contained in these ASUs. As discussed in Revenue from Contracts with Customers above, the Company’s rental related revenues are accounted for under the revenue accounting standard Topic 606, until the adoption of this lease accounting standard Topic 842 on January 1, 2019.

Income Taxes

In January 2018, the FASB issued FASB Staff Question and Answer Topic 740, No. 5: Accounting for Global Intangible Low-Taxed Income (“GILTI”), which provides guidance on accounting for the GILTI provisions of the U.S. enacted tax reform legislation (“the Tax Act”). The GILTI provisions impose a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations. The guidance allows accounting for tax on GILTI to be treated as a deferred tax item or as a component of current period income tax expense in the year incurred, subject to an accounting policy election. The Company will complete its analysis in a subsequent period not to exceed one year from the date of the enactment of the Tax Act and will elect an accounting policy at such time.

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2. Revenues

The following table presents the Company’s revenues disaggregated by geography.

	Three Months Ended June 30, 2018		Six Months Ended June 30, 2018
Americas	$	1,590	$	2,938
Europe, Middle East and Africa	600		1,047
Asia and Australasia	138		311
Total revenues	$	2,328	$	4,296

The following table presents the Company’s revenues disaggregated by brand.

	Three Months Ended June 30, 2018		Six Months Ended June 30, 2018
Avis	$	1,351	$	2,496
Budget	777		1,419
Other	200		381
Total revenues	$	2,328	$	4,296

________

Other includes Zipcar, Payless, Apex, Maggiore and FranceCars.

The Company derives revenues primarily by providing vehicle rentals and other related products and mobility services to commercial and leisure customers, as well as through licensing of its rental systems. Other related products and mobility services include sales of collision and loss damage waivers under which a customer is relieved from financial responsibility arising from vehicle damage incurred during the rental; products and services for driving convenience such as fuel service options, chauffeur drive services, roadside safety net, electronic toll collection, tablet rentals, access to satellite radio, portable navigation units and child safety seat rentals; and rentals of other supplemental items including automobile towing equipment and other moving accessories and supplies. The Company also receives payment from customers for certain operating expenses that it incurs, including airport concession fees that are paid by the Company in exchange for the right to operate at airports and other locations, as well as vehicle licensing fees. In addition, the Company collects membership fees in connection with its car sharing business.

Revenue is recognized when obligations under the terms of a contract with the customer are satisfied; generally this occurs evenly over the contract (over time); when control of the promised products or services is transferred to the customer. Revenue is measured as the amount of consideration the Company expects to be entitled to receive in exchange for transferring products or services. Certain customers may receive cash-based rebates, which are accounted for as variable consideration. The Company estimates these rebates based on the expected amount to be provided to customers and reduces revenue recognized. Vehicle rental and rental-related revenues are recognized evenly over the period of rental. Licensing revenues principally consist of royalties paid by the Company’s licensees and are recorded as the licensees’ revenues are earned (over the rental period). The Company renews license agreements in the normal course of business and occasionally terminates, purchases or sells license agreements. In connection with ongoing fees that the Company receives from its licensees pursuant to license agreements, the Company is required to provide certain services, such as training, marketing and the operation of reservation systems. Revenues and expenses associated with gasoline, airport concessions and vehicle licensing are recorded on a gross basis within revenues and operating expenses. Membership fees related to the Company’s car sharing business are generally nonrefundable, are deferred and recognized ratably over the period of membership.

Contract Liabilities

The Company records deferred revenues when cash payments are received in advance of satisfying its performance obligations, including amounts that are refundable. In addition, certain customers earn loyalty points on rentals, for which the Company defers a portion of its rental revenues generally equivalent to the

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estimated retail value of points expected to be redeemed. The Company estimates points that will never be redeemed based upon actual redemption and expiration patterns. Currently loyalty points expire at the earlier of 12 months of member inactivity or five years from when they were earned. Future changes to expiration assumptions or expiration policy, or to program rules, may result in changes to deferred revenue as well as recognized revenues from the program.

The following table presents changes in the Company’s contract liabilities during the six months ended June 30, 2018.

	Balance at January 1, 2018		Revenue deferred		Revenue recognized		Balance at June 30, 2018
Prepaid rentals(a)	$	101	$	891	$	782	$	210
Other deferred revenue(b)	93		108		108		93
Total deferred revenue	$	194	$	999	$	890	$	303

________

^(a)  At June 30, 2018, included in accounts payable and other current liabilities.

^(b)  At June 30, 2018, $37 million included in accounts payable and other current liabilities and $56 million in other non-current liabilities. Non-current amounts are expected to be recognized as revenue within two to three years.

3. Restructuring and Other Related Charges

Restructuring

During first quarter 2018, the Company initiated a strategic restructuring plan to improve processes and reduce headcount in response to its new workforce planning technology that allows more effective management of staff levels (“Workforce planning”). During the six months ended June 30, 2018, as part of this process, the Company formally communicated the termination of employment to 91 employees, and as of June 30, 2018, the Company had terminated the employment of 87 of these employees. The costs associated with this initiative primarily represent severance, outplacement services and other costs associated with employee terminations, the majority of which have been or are expected to be settled in cash. The Company expects further restructuring expense of approximately $11 million related to this initiative to be incurred in 2018.

During fourth quarter 2017, the Company initiated a strategic restructuring initiative to better position its truck rental operations in the U.S., in which it closed certain rental locations and reduced the size of the older rental fleet, with the intent to increase fleet utilization and reduce vehicle and overhead costs (“Truck initiative”). The Company expects further restructuring expense of approximately $1 million related to this initiative to be incurred in 2018.

During first quarter 2017, the Company initiated a strategic restructuring initiative to drive operational efficiency throughout the organization by reducing headcount, improving processes and consolidating functions, closing certain rental locations and decreasing the size of its fleet (“T17”). As of June 30, 2018, the Company had terminated the employment of 673 employees related to this initiative. The costs associated with this initiative primarily represent severance, outplacement services and other costs associated with employee terminations, the majority of which have been or are expected to be settled in cash. This initiative is substantially complete.

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The following tables summarize the changes to our restructuring-related liabilities and identify the amounts recorded within the Company’s reporting segments for restructuring charges and corresponding payments and utilizations:

		Americas			International			Total
Balance as of January 1, 2018		$	1		$	3		$	4
	Restructuring expense:
	Workforce planning	2			5			7
	Truck initiative	2			—			2
	Restructuring payment/utilization:
	Workforce planning	(2		)	(4		)	(6		)
	Truck initiative	(2		)	—			(2		)
	T17	(1		)	(2		)	(3		)
Balance as of June 30, 2018		$	—		$	2		$	2
		Personnel Related			Other (a)			Total
Balance as of January 1, 2018		$	4		$	—		$	4
	Restructuring expense:
	Workforce planning	6			1			7
	Truck initiative	—			2			2
	Restructuring payment/utilization:
	Workforce planning	(5		)	(1		)	(6		)
	Truck initiative	—			(2		)	(2		)
	T17	(3		)	—			(3		)
Balance as of June 30, 2018		$	2		$	—		$	2

__________

^(a)  Includes expenses primarily related to the disposition of vehicles.

Other Related Charges

Officer Separation Costs

On May 12, 2017, the Company announced the resignation of David B. Wyshner as the Company’s President and Chief Financial Officer. In connection with Mr. Wyshner’s departure, the Company recorded other related charges of $7 million during the three and six months ended June 30, 2017, inclusive of accelerated stock-based compensation expense of $2 million.

Limited Voluntary Opportunity Plans (“LVOP”)

During 2017, the Company offered voluntary termination programs to certain employees in the Americas’ field operations, shared services, and general and administrative functions for a limited time. These employees, if qualified, elected resignation from employment in return for enhanced severance benefits to be settled in cash. During the three and six months ended June 30, 2017, the Company recorded other related charges of $14 million. As of June 30, 2018, 358 qualified employees elected to participate in the plans and the employment of all participants had been terminated.

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4. Earnings Per Share

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

		Three Months Ended   June 30,				Six Months Ended   June 30,
		2018		2017		2018			2017
Net income (loss) for basic and diluted EPS		$	26	$	3	$	(61	)	$	(104	)
Basic weighted average shares outstanding		80.7		84.0		80.8			84.9
Options and non-vested stock (a)		0.8		1.2		—			—
Diluted weighted average shares outstanding		81.5		85.2		80.8			84.9
Earnings (loss) per share:
	Basic	$	0.33	$	0.04	$	(0.75	)	$	(1.22	)
	Diluted	$	0.32	$	0.04	$	(0.75	)	$	(1.22	)

__________

^(a)  For the three months ended June 30, 2018 and 2017, 0.2 million and 0.7 million non-vested stock awards, respectively, have an anti-dilutive effect and therefore are excluded from the computation of diluted weighted average shares outstanding. As the Company incurred a net loss for the six months ended June 30, 2018 and 2017, 0.1 million and 0.8 million outstanding options, respectively, and 1.5 million and 1.3 million non-vested stock awards, respectively, have an anti-dilutive effect and therefore are excluded from the computation of diluted weighted average shares outstanding.

5. Other Investments

In March 2018, the Company made an initial equity investment of €15 million ($19 million) in its licensee in Greece (“Greece”), for a 20% ownership stake. In connection with this investment, the Company entered into an agreement to purchase an additional 20% equity interest, 10% in March 2019 and 10% in March 2020, for €15 million. In June 2018, the Company completed its purchase of the additional 20% equity investment for €16 million ($18 million), including an acceleration premium, and as of June 30, 2018, had a 40% ownership stake in Greece. The Company’s equity investment is recorded within other non-current assets. The Company’s share of Greece’s results are reported within operating expenses and are not material for the three and six months ended June 30, 2018.

6. Other Current Assets

Other current assets consisted of:

	As of June 30, 2018		As of December 31, 2017
Sales and use taxes	$	402	$	174
Prepaid expenses	252		196
Other	178		163
Other current assets	$	832	$	533

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7. Intangible Assets

Intangible assets consisted of:

	As of June 30, 2018						As of December 31, 2017
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Amortized Intangible Assets
License agreements	$	310	$	154	$	156	$	281	$	140	$	141
Customer relationships	238		130		108		242		119		123
Other	49		19		30		51		18		33
Total	$	597	$	303	$	294	$	574	$	277	$	297
Unamortized Intangible Assets
Goodwill (a)	$	1,049					$	1,073
Trademarks	$	549					$	553

_________

^(a)  The change in the carrying amount since December 31, 2017, primarily reflects currency translation.

For the three months ended June 30, 2018 and 2017, amortization expense related to amortizable intangible assets was approximately $19 million and $16 million, respectively. For the six months ended June 30, 2018 and 2017, amortization expense related to amortizable intangible assets was approximately $33 million and $31 million, respectively. Based on the Company’s amortizable intangible assets at June 30, 2018, the Company expects amortization expense of approximately $37 million for the remainder of 2018, $50 million for 2019, $43 million for 2020, $30 million for 2021, $24 million for 2022 and $21 million for 2023, excluding effects of currency exchange rates.

8. Vehicle Rental Activities

The components of vehicles, net within assets under vehicle programs were as follows:

	As of			As of
	June 30,			December 31,
	2018			2017
Rental vehicles	$	15,188		$	11,652
Less: Accumulated depreciation	(1,629		)	(1,652		)
	13,559			10,000
Vehicles held for sale	308			626
Vehicles, net	$	13,867		$	10,626

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

	Three Months Ended   June 30,					Six Months Ended   June 30,
	2018			2017		2018			2017
Depreciation expense	$	536		$	516	$	996		$	953
Lease charges	64			54		120			97
(Gain) loss on sale of vehicles, net	(9		)	27		(10		)	51
Vehicle depreciation and lease charges, net	$	591		$	597	$	1,106		$	1,101

At June 30, 2018 and 2017, the Company had payables related to vehicle purchases included in liabilities under vehicle programs - other of $856 million and $658 million, respectively, and receivables related to vehicle sales included in assets under vehicle programs - receivables from vehicle manufacturers and other of $248 million and $235 million, respectively.

9. Income Taxes

The Company’s effective tax rate for the six months ended June 30, 2018 is a benefit of 33.0%. Such rate differed from the Federal statutory rate of 21.0% primarily due to U.S. and foreign taxes on our international

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operations and state taxes. Tax benefits associated with stock-based compensation increased the benefit for income taxes recorded in the current period.

The Company’s effective tax rate for the six months ended June 30, 2017 was a benefit of 32.5%. Such rate differed from the Federal statutory rate of 35.0% primarily due to foreign taxes as a result of the mix of the Company’s earnings between the U.S. and foreign jurisdictions.

The Company has not finalized the accounting for the effects of the Tax Act due to the complex analysis necessary to determine the historical earnings of foreign subsidiaries, the ability to utilize tax attributes such as foreign tax credits, and the impact of the repeal of the like-kind exchange provision for personal property together with the corresponding impact on deferred tax components and valuation allowances. Therefore, during the six months ended June 30, 2018, the Company has not recorded any adjustments to the provisional amounts recorded in 2017. Any adjustments to the provisional amounts recorded in 2017 will be recorded when the Company finalizes its accounting of the tax effects within a subsequent measurement period that will not exceed one year from the date of the enactment of the Tax Act.

The Company continues to evaluate whether or not to continue to assert indefinite reinvestment on a part or all of its undistributed foreign earnings. This requires the Company to analyze its global working capital and cash requirements in light of the Tax Act and the potential tax liabilities attributable to a repatriation to the U.S., such as foreign withholding taxes and U.S. tax on currency transaction gains or losses. The Company did not record any deferred taxes attributable to its investments in its foreign subsidiaries. The Company will record the tax effects of any change in its assertion within a subsequent measurement period that will not exceed one year from the date of the enactment of the Tax Act.

10. Accounts Payable and Other Current Liabilities

Accounts payable and other current liabilities consisted of:

	As of		As of
	June 30,		December 31,
	2018		2017
Accounts payable	$	412	$	359
Accrued sales and use taxes	262		218
Deferred revenue – current	247		135
Accrued advertising and marketing	197		190
Accrued payroll and related	176		176
Public liability and property damage insurance liabilities – current	144		145
Accrued insurance	102		103
Other	292		293
Accounts payable and other current liabilities	$	1,832	$	1,619

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11. Long-term Corporate Debt and Borrowing Arrangements

Long-term corporate debt and borrowing arrangements consisted of:

		As of			As of
	Maturity Dates	June 30,			December 31,
		2018			2017
Floating Rate Term Loan	March 2022	$	—		$	1,136
5⅛% Senior Notes	June 2022	400			400
5½% Senior Notes	April 2023	675			675
6⅜% Senior Notes	April 2024	350			350
4⅛% euro-denominated Senior Notes	November 2024	351			360
Floating Rate Term Loan (a)	February 2025	1,128			—
5¼% Senior Notes	March 2025	375			375
4½% euro-denominated Senior Notes	May 2025	292			300
Other (b)		43			49
Deferred financing fees		(46		)	(46		)
Total		3,568			3,599
Less: Short-term debt and current portion of long-term debt		24			26
Long-term debt		$	3,544		$	3,573

__________

^(a)  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 June 30, 2018, the floating rate term loan due 2025 bears interest at three-month LIBOR plus 200 basis points, for an aggregate rate of 4.34%. The Company has entered into a swap to hedge $700 million of its interest rate exposure related to the floating rate term loan at an aggregate rate of 3.79%.

^(b)  Primarily includes capital leases which are secured by liens on the related assets.

In February 2018, the Company amended the terms of its Floating Rate Term Loan due 2022 and extended its maturity term to 2025.

Committed Credit Facilities and Available Funding Arrangements

At June 30, 2018, the committed corporate credit facilities available to the Company and/or its subsidiaries were as follows:

	Total Capacity		Outstanding Borrowings		Letters of Credit Issued		Available Capacity
Senior revolving credit facility maturing 2023 (a)	$	1,800	$	—	$	1,324	$	476
Other facilities(b)	2		2		—		—

__________

^(a)  The senior revolving credit facility bears interest at one-month LIBOR plus 200 basis points and is part of the Company’s senior credit facility, which is secured by pledges of capital stock of certain subsidiaries of the Company, and liens on substantially all of the Company’s intellectual property and certain other real and personal property.

^(b)  These facilities encompass bank overdraft lines of credit, bearing interest of 3.22% as of June 30, 2018.

In February 2018, the Company amended the terms of its Senior revolving credit facility maturing 2021 and extended its maturity to 2023.

At June 30, 2018, the Company had various uncommitted credit facilities available, under which it had drawn approximately $1 million, which bear interest at rates between 0.74% and 1.54%.

Debt Covenants

The agreements governing the Company’s corporate 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. As of June 30, 2018, the Company was in compliance with the financial covenants governing its indebtedness.

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12. 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
	June 30,			December 31,
	2018			2017
Americas - Debt due to Avis Budget Rental Car Funding (a)	$	8,298		$	6,516
Americas - Debt borrowings	912			660
International - Debt borrowings	2,399			1,942
International - Capital leases	211			146
Other	4			1
Deferred financing fees (b)	(48		)	(44		)
Total	$	11,776		$	9,221

__________

^(a)  The increase reflects additional borrowings principally to fund increases in the Company’s car rental fleet.

^(b)  Deferred financing fees related to Debt due to Avis Budget Rental Car Funding as of June 30, 2018 and December 31, 2017 were $33 million and $36 million, respectively.

In April 2018, the Company’s Avis Budget Rental Car Funding subsidiary issued approximately $400 million in asset-backed notes with an expected final payment date of September 2023. The weighted average interest rate was 4%. The Company used the proceeds from these borrowings to fund the repayment of maturing vehicle-backed debt and the acquisition of rental cars in the United States.

In June 2018, the Company increased its capacity under the European rental fleet securitization program by €150 million (approximately $175 million) to €1.8 billion (approximately $2.1 billion) and extended its maturity to 2021. The Company used the proceeds to finance fleet purchases for certain of the Company’s European operations.

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 June 30, 2018.

	Debt under Vehicle Programs
Within 1 year	$	1,816
Between 1 and 2 years	4,703
Between 2 and 3 years	2,997
Between 3 and 4 years	724
Between 4 and 5 years	1,156
Thereafter	428
Total	$	11,824

Committed Credit Facilities and Available Funding Arrangements

As of June 30, 2018, available funding under the Company’s vehicle programs, including related party debt due to Avis Budget Rental Car Funding, consisted of:

	Total Capacity (a)		Outstanding Borrowings(b)		Available Capacity
Americas - Debt due to Avis Budget Rental Car Funding	$	8,988	$	8,298	$	690
Americas - Debt borrowings	971		912		59
International - Debt borrowings	3,081		2,399		682
International - Capital leases	231		211		20
Other	4		4		—
Total	$	13,275	$	11,824	$	1,451

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__________

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

^(b)  The outstanding debt is collateralized by vehicles and related assets of $9.8 billion for Americas - Debt due to Avis Budget Rental Car Funding; $1.3 billion for Americas - Debt borrowings; $2.6 billion for International - Debt borrowings; and $0.2 billion for International - Capital leases.

Debt Covenants

The agreements under the Company’s vehicle-backed funding programs contain restrictive covenants, including restrictions on dividends paid to the Company by certain of its subsidiaries and restrictions on indebtedness, mergers, liens, liquidations, and sale and leaseback transactions and in some cases also require compliance with certain financial requirements. As of June 30, 2018, the Company is not aware of any instances of non-compliance with any of the financial covenants contained in the debt agreements under its vehicle-backed funding programs.

13. Commitments and Contingencies

Contingencies

In 2006, the Company completed the spin-offs of its Realogy and Wyndham subsidiaries. The Company does not believe that the impact of any resolution of pre-existing contingent liabilities in connection with the spin-offs should result in a material liability to the Company in relation to its consolidated financial position or liquidity, as Realogy and Wyndham each have agreed to assume responsibility for these liabilities. The Company is also named in litigation that is primarily related to the businesses of its former subsidiaries, including Realogy and Wyndham. The Company is entitled to indemnification from such entities for any liability resulting from such litigation.

In February 2017, following a state court trial in Georgia, a jury found the Company liable for damages in a case brought by a plaintiff who was injured in a vehicle accident allegedly caused by an employee of an independent contractor of the Company who was acting outside of the scope of employment. In March 2017, the Company was also found liable for damages in a companion case arising from the same incident. The Company considers the attribution of liability to the Company, and the amount of damages awarded, to be unsupported by the facts of these cases and intends to appeal the verdicts. The Company has recognized a liability for the expected loss related to these cases, net of recoverable insurance proceeds, of approximately $12 million.

The Company is involved in claims, legal proceedings and governmental inquiries that are incidental to its vehicle rental and car sharing operations, including, among others, contract and licensee disputes, competition matters, employment and wage-and-hour claims, insurance and liability claims, intellectual property claims, business practice disputes and other regulatory, environmental, commercial and tax matters. Litigation is inherently unpredictable and, although the Company believes that its accruals are adequate and/or that it has valid defenses in these matters, unfavorable resolutions could occur. The Company estimates that the potential exposure resulting from adverse outcomes of legal proceedings in which it is reasonably possible that a loss may be incurred could, in the aggregate, be up to approximately $50 million in excess of amounts accrued as of June 30, 2018. The Company does not believe that the impact should result in a material liability to the Company in relation to its consolidated financial condition or results of operations.

Commitments to Purchase Vehicles

The Company maintains agreements with vehicle manufacturers under which the Company has agreed to purchase approximately $2.8 billion of vehicles from manufacturers over the next 12 months financed primarily through the issuance of vehicle-backed debt and cash received upon the disposition of vehicles. Certain of these commitments are subject to the vehicle manufacturers’ satisfying their obligations under their respective repurchase and guaranteed depreciation agreements.

Concentrations

Concentrations of credit risk at June 30, 2018 include (i) risks related to the Company’s repurchase and

20

guaranteed depreciation agreements with domestic and foreign car manufacturers, primarily with respect to receivables for program cars that have been disposed but for which the Company has not yet received payment from the manufacturers and (ii) risks related to Realogy and Wyndham, including receivables of $23 million and $14 million, respectively, related to certain contingent, income tax and other corporate liabilities assumed by Realogy and Wyndham in connection with their disposition.

14. Stockholders’ Equity

Stockholder Rights Plan

In January 2018, the Company’s Board of Directors authorized the adoption of a short-term stockholder rights plan. Effective April 16, 2018 the Company terminated the rights plan. Pursuant to the rights plan, the Company declared a dividend of one preferred share purchase right for each outstanding share of common stock, payable to holders of record as of the close of business on January 26, 2018. Each right, which was exercisable only in the event any person or group were to acquire beneficial ownership of 15% or more of the Company’s outstanding common stock (with certain limited exceptions), would have entitled any holder other than the person or group whose ownership position had exceeded the ownership limit to purchase common stock having a value equal to twice the $100 exercise price of the right, or, at the election of the Board of Directors, to exchange each right for one share of common stock (subject to adjustment). On April 16, 2018, the Company also entered into a new cooperation agreement with SRS Investment Management LLC and certain of its affiliates.

Share Repurchases

The Company’s Board of Directors has authorized the repurchase of up to $1.5 billion of its common stock under a plan originally approved in 2013 and subsequently expanded, most recently in 2016. During the six months ended June 30, 2018, the Company repurchased approximately 1.6 million shares of common stock at a cost of approximately $67 million under the program. During the six months ended June 30, 2017, the Company repurchased approximately 3.4 million shares of common stock at a cost of approximately $100 million under the program. As of June 30, 2018, approximately $33 million of authorization remains available to repurchase common stock under this plan. In August 2018, the Company’s Board of Directors increased the Company’s share repurchase program authorization by $250 million.

Total Comprehensive Income (Loss)

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 (loss) were as follows: 

		Three Months Ended   June 30,						Six Months Ended   June 30,
		2018			2017			2018			2017
Net income (loss)		$	26		$	3		$	(61	)	$	(104	)
Other comprehensive income (loss):
	Currency translation adjustments (net of tax of $(10), $17, $(5) and $20, respectively)	(54		)	48			(53		)	73
	Net unrealized gain (loss) on available-for-sale securities (net of tax of $0 in each period)	—			1			—			1
	Net unrealized gain (loss) on cash flow hedges (net of tax of $(1), $1, $(3) and $1, respectively)	2			(2		)	8			(1		)
	Minimum pension liability adjustment (net of tax of $0, $0, $(1) and $(1), respectively)	2			1			3			3
		(50		)	48			(42		)	76
Comprehensive income (loss)		$	(24	)	$	51		$	(103	)	$	(28	)

21

__________

Currency translation adjustments exclude income taxes related to indefinite investments in foreign subsidiaries (See Note 9 - Income Taxes).

Accumulated Other Comprehensive Income (Loss)

The components of accumulated other comprehensive income (loss) were as follows: 

		Currency Translation Adjustments			Net Unrealized Gains (Losses) on Cash Flow Hedges(a)			Net Unrealized Gains (Losses) on Available-for Sale Securities			Minimum Pension Liability Adjustment(b)			Accumulated Other Comprehensive Income (Loss)
Balance, December 31, 2017		$	71		$	5		$	2		$	(102	)	$	(24	)
	Cumulative effect of accounting change (c)	7			1			(2		)	(12		)	(6		)
Balance, January 1, 2018		$	78		$	6		$	—		$	(114	)	$	(30	)
	Other comprehensive income (loss) before reclassifications	(53		)	8			—			1			(44		)
	Amounts reclassified from accumulated other comprehensive income (loss)	—			—			—			2			2
Net current-period other comprehensive income (loss)		(53		)	8			—			3			(42		)
Balance, June 30, 2018		$	25		$	14		$	—		$	(111	)	$	(72	)
Balance, January 1, 2017		$	(39	)	$	2		$	1		$	(118	)	$	(154	)
	Other comprehensive income (loss) before reclassifications	73			(2		)	1			—			72
	Amounts reclassified from accumulated other comprehensive income (loss)	—			1			—			3			4
Net current-period other comprehensive income (loss)		73			(1		)	1			3			76
Balance, June 30, 2017		$	34		$	1		$	2		$	(115	)	$	(78	)

__________

All components of accumulated other comprehensive income (loss) are net of tax, except currency translation adjustments, which exclude income taxes related to indefinite investments in foreign subsidiaries and include a $53 million gain, net of tax, as of June 30, 2018 related to the Company’s hedge of its net investment in euro-denominated foreign operations (see Note 16 - Financial Instruments).

^(a)  For the three and six months ended June 30, 2017, the amount reclassified from accumulated other comprehensive income (loss) into corporate interest expense were $1 million ($0 million, net of tax) and $2 million ($1 million, net of tax), respectively.

^(b)  For the three and six months ended June 30, 2018, amounts reclassified from accumulated other comprehensive income (loss) into selling, general and administrative expenses were $2 million ($1 million, net of tax) and $4 million ($2 million, net of tax), respectively. For the three and six months ended June 30, 2017, amounts reclassified from accumulated other comprehensive income (loss) into selling, general and administrative expenses were $2 million ($2 million, net of tax) and $4 million ($3 million, net of tax), respectively.

^(c)  See Note 1 - Basis of Presentation for the impact of adoption of ASU 2016-01 and ASU 2018-02.

15. Stock-Based Compensation

The Company recorded stock-based compensation expense of $7 million and $4 million ($5 million and $3 million, net of tax) during the three months ended June 30, 2018 and 2017, respectively, and $12 million and $5 million ($9 million and $3 million, net of tax) during the six months ended June 30, 2018 and 2017, respectively.

22

The activity related to restricted stock units (“RSUs”) consisted of (in thousands of shares):

			Number of Shares		Weighted Average Grant Date Fair Value		Weighted Average Remaining Contractual Term (years)	Aggregate Intrinsic Value (in millions)
Time-based RSUs
	Outstanding at January 1, 2018		1,160		$	34.54
		Granted (a)	317		48.66
		Vested (b)	(359	)	35.14
		Forfeited	(39	)	34.98
	Outstanding and expected to vest at June 30, 2018(c)		1,079		$	38.47	1.1	$	35
Performance-based and market-based RSUs
	Outstanding at January 1, 2018		994		$	33.06
		Granted (a)	349		48.72
		Vested	—		—
		Forfeited	(145	)	53.36
	Outstanding at June 30, 2018		1,198		$	35.17	1.5	$	39
	Outstanding and expected to vest at June 30, 2018(c)		266		$	44.49	2.3	$	9

__________

^(a)  Reflects the maximum number of stock units assuming achievement of all performance-, market- and time-vesting criteria and does not include those for non-employee directors. The weighted-average fair value of time-based RSUs and performance-based RSUs granted during the six months ended June 30, 2017 was $34.41.

^(b)  The total fair value of RSUs vested during June 30, 2018 and 2017 was $13 million and $22 million, respectively.

^(c)  Aggregate unrecognized compensation expense related to time-based RSUs and performance-based RSUs amounted to $41 million and will be recognized over a weighted average vesting period of 1.3 years.

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

		Number of Options		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (years)	Aggregate Intrinsic Value (in millions)
Outstanding at January 1, 2018		273		$	7.08	1.7	$	10
	Granted	—		—
	Exercised	(186	)	9.99			7
	Forfeited/expired	—		—
Outstanding and exercisable at June 30, 2018		87		$	0.79	0.6	$	3

16. Financial Instruments

Derivative Instruments and Hedging Activities

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

The amount of gains or losses reclassified from other comprehensive income (loss) to earnings resulting from ineffectiveness or from excluding a component of the hedges’ gain or loss from the effectiveness calculation for cash flow and net investment hedges during the three and six months ended June 30, 2018 and 2017 was not material, nor is the amount of gains or losses the Company expects to reclassify from

23

accumulated other comprehensive income (loss) to earnings over the next 12 months.

Interest Rate Risk. The Company uses various hedging strategies including interest rate swaps and interest rate caps to create what it deems an appropriate mix of fixed and floating rate assets and liabilities. The Company uses interest rate swaps and interest rate caps to manage the risk related to its floating rate corporate debt and its floating rate vehicle-backed debt. The Company records the effective portion of changes in the fair value of its cash flow hedges to other comprehensive income (loss), net of tax, and subsequently reclassifies these amounts into earnings in the period during which the hedged transaction 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 Condensed Statements of Comprehensive Income. The changes in fair values of hedges that are determined to be ineffective are immediately reclassified from accumulated other comprehensive income (loss) into earnings. The amount of gains or losses reclassified from other comprehensive income (loss) to earnings resulting from ineffectiveness related to the Company’s cash flow hedges was not material during the three and six months ended June 30, 2018 and 2017. The Company estimates that $5 million of gains currently recorded in accumulated other comprehensive income (loss) will be recognized in earnings over the next 12 months.

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

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

	As of June 30, 2018
Interest rate caps (a)	$	8,934
Interest rate swaps	1,000
Foreign exchange contracts	1,276
Commodity contracts (millions of gallons of unleaded gasoline)	9

__________

^(a)  Represents $5.9 billion of interest rate caps sold, partially offset by approximately $3.0 billion of interest rate caps purchased. These amounts exclude $3.0 billion of interest rate caps purchased by the Company’s Avis Budget Rental Car Funding subsidiary as it is not consolidated by the Company.

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

		As of June 30, 2018				As of December 31, 2017
		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)	$	19	$	—	$	8	$	—
Derivatives not designated as hedging instruments
	Interest rate caps (b)	1		5		—		1
	Foreign exchange contracts (c)	14		5		3		7
	Commodity contracts (c)	1		—		—		—
	Total	$	35	$	10	$	11	$	8

__________

Amounts in this table exclude derivatives issued by Avis Budget Rental Car Funding; however, certain amounts related to the derivatives held by Avis Budget Rental Car Funding are included within accumulated other comprehensive income (loss).

^(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.

24

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

		Three Months Ended   June 30,						Six Months Ended   June 30,
		2018			2017			2018			2017
Derivatives designated as hedging instruments (a)
	Interest rate swaps	$	2		$	(2	)	$	8		$	(1	)
	Euro-denominated notes	26			(26		)	13			(31		)
Derivatives not designated as hedging instruments (b)
	Interest rate caps (c)	(1		)	—			(1		)	—
	Foreign exchange contracts (d)	28			(21		)	19			(33		)
	Commodity contracts (e)	1			(1		)	1			(2		)
	Total	$	56		$	(50	)	$	40		$	(67	)

__________

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

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

^(c)  Included primarily in vehicle interest, net.

^(d)  For the three months ended June 30, 2018, included a $20 million gain in interest expense and a $8 million gain in operating expense and for the six months ended June 30, 2018, included a $7 million gain in interest expense and a $12 million gain in operating expense. For the three months ended June 30, 2017, included a $11 million loss in interest expense and a $10 million loss in operating expense and for the six months ended June 30, 2017, included a $18 million loss in interest expense and a $15 million loss in operating expense.

^(e)  Included in operating expense.

Debt Instruments

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

		As of June 30, 2018				As of December 31, 2017
		Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Corporate debt
	Short-term debt and current portion of long-term debt	$	24	$	24	$	26	$	26
	Long-term debt	3,544		3,539		3,573		3,677
Debt under vehicle programs
	Vehicle-backed debt due to Avis Budget Rental Car Funding	$	8,265	$	8,270	$	6,480	$	6,537
	Vehicle-backed debt	3,506		3,520		2,740		2,745
	Interest rate swaps and interest rate caps (a)	5		5		1		1

__________

^(a)  Derivatives in a liability position.

17. Segment Information

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

Management evaluates the operating results of each of its reportable segments based upon revenues and “Adjusted EBITDA,” which the Company defines as income from continuing operations before non-vehicle related depreciation and amortization, any impairment charges, restructuring and other related charges, early extinguishment of debt costs, non-vehicle related interest, transaction-related costs, net charges for

25

unprecedented personal-injury legal matters, non-operational charges related to shareholder activist activity and income taxes. Net charges for unprecedented personal-injury legal matters are recorded within operating expenses in the Company’s Consolidated Condensed Statement of Comprehensive Income. The Company has revised its definition of Adjusted EBITDA to exclude non-operational charges related to shareholder activist activity. Non-operational charges related to shareholder activist activity include third party advisory, legal and other professional service fees and are recorded within selling, general and administrative expenses in the Company’s Consolidated Condensed Statement of Comprehensive Income. The Company did not revise prior years’ Adjusted EBITDA amounts because there were no costs similar in nature to these costs. The Company’s presentation of Adjusted EBITDA may not be comparable to similarly-titled measures used by other companies.

			Three Months Ended June 30,
			2018					2017
			Revenues		Adjusted EBITDA			Revenues		Adjusted EBITDA
Americas			$	1,590	$	107		$	1,565	$	96
International			738		71			673		59
Corporate and Other (a)			—		(17		)	—		(15		)
	Total Company		$	2,328	$	161		$	2,238	$	140
Reconciliation of Adjusted EBITDA to income before income taxes
					2018					2017
Adjusted EBITDA					$	161				$	140
Less:		Non-vehicle related depreciation and amortization			67					65
		Interest expense related to corporate debt, net			49					48
		Restructuring and other related charges			4					38
		Transaction-related costs, net			3					5
		Charges for legal matter, net			—					(27		)
Income before income taxes					$	38				$	11

__________

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

			Six Months Ended June 30,
			2018					2017
			Revenues		Adjusted EBITDA			Revenues		Adjusted EBITDA
Americas			$	2,938	$	122		$	2,879	$	76
International			1,358		74			1,198		66
Corporate and Other (a)			—		(33		)	—		(29		)
	Total Company		$	4,296	$	163		$	4,077	$	113
Reconciliation of Adjusted EBITDA to loss before income taxes
					2018					2017
Adjusted EBITDA					$	163				$	113
Less:		Non-vehicle related depreciation and amortization			128					128
		Interest expense related to corporate debt, net:
		Interest expense			95					97
		Early extinguishment of debt			5					3
		Restructuring and other related charges			10					45
		Non-operational charges related to shareholder activist activity			9					—
		Transaction-related costs, net			7					8
		Charges for legal matter, net			—					(14		)
Loss before income taxes					$	(91	)			$	(154	)

__________

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

Since December 31, 2017, there have been no significant changes in segment assets exclusive of assets under vehicle programs. As of June 30, 2018 and December 31, 2017, Americas assets under vehicle programs were approximately $11.0 billion and $9.0 billion, respectively, due to seasonality. As of June 30,

26

2018 and December 31, 2017, International assets under vehicle programs were approximately $3.7 billion and $2.9 billion, respectively, due to seasonality.

18. Guarantor and Non-Guarantor Consolidating Condensed Financial Statements

The following consolidating financial information presents Consolidating Condensed Statements of Comprehensive Income for the three and six months ended June 30, 2018 and 2017, Consolidating Condensed Balance Sheets as of June 30, 2018 and December 31, 2017, and Consolidating Condensed Statements of Cash Flows for the six months ended June 30, 2018 and 2017 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 notes issued by the Subsidiary Issuers. See Note 11 - Long-term Corporate Debt and Borrowing Arrangements for additional description of these guaranteed notes. The Senior 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.

The following tables provide the impact of adoption of ASU 2016-18 on the Company’s Consolidating Condensed Statements of Cash Flows for the six months ended June 30, 2017.

	Six Months Ended June 30, 2017
	As Previously Reported Non-Guarantor			Effect of Change			As Adjusted Non-Guarantor			As Previously Reported Total			Effect of Change			As Adjusted Total
Decrease in program cash	$	168		$	(168	)	$	—		$	168		$	(168	)	$	—
Other, net	(1		)	1			—			(1		)	1			—
Net cash used in investing activities	(3,303		)	(167		)	(3,470		)	(3,019		)	(167		)	(3,186		)
Effect of changes in exchange rates on cash and cash equivalents, program and restricted cash	27			9			36			27			9			36
Net increase in cash and cash equivalents, program and restricted cash	177			(158		)	19			286			(158		)	128
Cash and cash equivalents, program and restricted cash, beginning of period	475			230			705			490			230			720
Cash and cash equivalents, program and restricted cash, end of period	$	652		$	72		$	724		$	776		$	72		$	848

The following table provides a reconciliation of the cash and cash equivalents, program and restricted cash reported within the Consolidating Condensed Balance Sheets to the amounts shown in the Consolidating Condensed Statements of Cash Flows.

	As of June 30,
	2018				2017
	Non-Guarantor		Total		Non-Guarantor		Total
Cash and cash equivalents	$	475	$	489	$	652	$	776
Program cash	161		161		65		65
Restricted cash (a)	11		11		7		7
Total cash and cash equivalents, program and restricted cash	$	647	$	661	$	724	$	848

_________

^(a)  Included within other current assets.

27

Consolidating Condensed Statements of Comprehensive Income

Three Months Ended June 30, 2018

			Parent			Subsidiary Issuers			Guarantor Subsidiaries			Non- Guarantor Subsidiaries		Eliminations			Total
Revenues			$	—		$	—		$	1,395		$	1,590	$	(657	)	$	2,328
Expenses
	Operating		1			(3		)	677			500		—			1,175
	Vehicle depreciation and lease charges, net		—			—			605			582		(596		)	591
	Selling, general and administrative		10			3			176			132		—			321
	Vehicle interest, net		—			—			61			80		(61		)	80
	Non-vehicle related depreciation and amortization		—			1			36			30		—			67
	Interest expense related to corporate debt, net:
		Interest expense	—			39			1			9		—			49
		Intercompany interest expense (income)	(3		)	(31		)	5			29		—			—
	Restructuring and other related charges		—			—			1			3		—			4
	Transaction-related costs, net		—			1			1			1		—			3
Total expenses			8			10			1,563			1,366		(657		)	2,290
Income (loss) before income taxes and equity in earnings of subsidiaries			(8		)	(10		)	(168		)	224		—			38
Provision for (benefit from) income taxes			(5		)	(3		)	14			6		—			12
Equity in earnings of subsidiaries			29			36			218			—		(283		)	—
Net income			$	26		$	29		$	36		$	218	$	(283	)	$	26
Comprehensive income (loss)			$	(24	)	$	(21	)	$	(16	)	$	165	$	(128	)	$	(24	)

28

Six Months Ended June 30, 2018

			Parent			Subsidiary Issuers			Guarantor Subsidiaries			Non- Guarantor Subsidiaries		Eliminations			Total
Revenues			$	—		$	—		$	2,579		$	2,949	$	(1,232	)	$	4,296
Expenses
	Operating		2			1			1,298			966		—			2,267
	Vehicle depreciation and lease charges, net		—			—			1,141			1,086		(1,121		)	1,106
	Selling, general and administrative		28			6			331			252		—			617
	Vehicle interest, net		—			—			113			150		(111		)	152
	Non-vehicle related depreciation and amortization		—			1			72			55		—			128
	Interest expense related to corporate debt, net:
		Interest expense	—			78			2			15		—			95
		Intercompany interest expense (income)	(6		)	(9		)	11			4		—			—
		Early extinguishment of debt	—			5			—			—		—			5
	Restructuring and other related charges		—			—			4			6		—			10
	Transaction-related costs, net		—			1			1			5		—			7
Total expenses			24			83			2,973			2,539		(1,232		)	4,387
Income (loss) before income taxes and equity in earnings of subsidiaries			(24		)	(83		)	(394		)	410		—			(91		)
Provision for (benefit from) income taxes			(11		)	(22		)	(5		)	8		—			(30		)
Equity in earnings (loss) of subsidiaries			(48		)	13			402			—		(367		)	—
Net income (loss)			$	(61	)	$	(48	)	$	13		$	402	$	(367	)	$	(61	)
Comprehensive income (loss)			$	(103	)	$	(90	)	$	(37	)	$	349	$	(222	)	$	(103	)

29

Three Months Ended June 30, 2017

			Parent			Subsidiary Issuers			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Total
Revenues			$	—		$	—		$	1,371		$	1,530		$	(663	)	$	2,238
Expenses
	Operating		1			9			644			454			—			1,108
	Vehicle depreciation and lease charges, net		—			—			614			592			(609		)	597
	Selling, general and administrative		10			2			158			123			—			293
	Vehicle interest, net		—			—			52			75			(54		)	73
	Non-vehicle related depreciation and amortization		—			1			40			24			—			65
	Interest expense related to corporate debt, net:
		Interest expense	—			83			—			(35		)	—			48
		Intercompany interest expense (income)	(3		)	5			5			(7		)	—			—
		Early extinguishment of debt	—			1			—			(1		)	—			—
	Restructuring and other related charges		—			2			33			3			—			38
	Transaction-related costs, net		—			—			—			5			—			5
Total expenses			8			103			1,546			1,233			(663		)	2,227
Income (loss) before income taxes and equity in earnings of subsidiaries			(8		)	(103		)	(175		)	297			—			11
Provision for (benefit from) income taxes			(2		)	(39		)	11			38			—			8
Equity in earnings of subsidiaries			9			73			259			—			(341		)	—
Net income			$	3		$	9		$	73		$	259		$	(341	)	$	3
Comprehensive income			$	51		$	58		$	123		$	309		$	(490	)	$	51

30

Six Months Ended June 30, 2017

			Parent			Subsidiary Issuers			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Total
Revenues			$	—		$	—		$	2,524		$	2,801		$	(1,248	)	$	4,077
Expenses
	Operating		2			13			1,284			858			—			2,157
	Vehicle depreciation and lease charges, net		—			—			1,160			1,085			(1,144		)	1,101
	Selling, general and administrative		20			4			311			220			—			555
	Vehicle interest, net		—			—			97			144			(104		)	137
	Non-vehicle related depreciation and amortization		—			1			80			47			—			128
	Interest expense related to corporate debt, net:
		Interest expense	—			129			1			(33		)	—			97
		Intercompany interest expense (income)	(6		)	6			11			(11		)	—			—
		Early extinguishment of debt	—			4			—			(1		)	—			3
	Restructuring and other related charges		—			2			39			4			—			45
	Transaction-related costs, net		—			—			—			8			—			8
Total expenses			16			159			2,983			2,321			(1,248		)	4,231
Income (loss) before income taxes and equity in earnings of subsidiaries			(16		)	(159		)	(459		)	480			—			(154		)
Provision for (benefit from) income taxes			(4		)	(62		)	(28		)	44			—			(50		)
Equity in earnings (loss) of subsidiaries			(92		)	5			436			—			(349		)	—
Net income (loss)			$	(104	)	$	(92	)	$	5		$	436		$	(349	)	$	(104	)
Comprehensive income (loss)			$	(28	)	$	(16	)	$	82		$	512		$	(578	)	$	(28	)

31

Consolidating Condensed Balance Sheets

As of June 30, 2018

		Parent		Subsidiary Issuers		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations			Total
Assets
Current assets:
	Cash and cash equivalents	$	3	$	11	$	—	$	475	$	—		$	489
	Receivables, net	—		—		248		654		—			902
	Other current assets	2		114		119		597		—			832
Total current assets		5		125		367		1,726		—			2,223
Property and equipment, net		—		183		317		215		—			715
Deferred income taxes		13		887		169		51		—			1,120
Goodwill		—		—		471		578		—			1,049
Other intangibles, net		—		26		477		340		—			843
Other non-current assets		46		39		16		142		—			243
Intercompany receivables		191		393		1,747		924		(3,255		)	—
Investment in subsidiaries		169		4,595		3,900		—		(8,664		)	—
Total assets exclusive of assets under vehicle programs		424		6,248		7,464		3,976		(11,919		)	6,193
Assets under vehicle programs:
	Program cash	—		—		—		161		—			161
	Vehicles, net	—		43		57		13,767		—			13,867
	Receivables from vehicle manufacturers and other	—		3		—		250		—			253
	Investment in Avis Budget Rental Car Funding (AESOP) LLC-related party	—		—		—		445		—			445
		—		46		57		14,623		—			14,726
Total assets		$	424	$	6,294	$	7,521	$	18,599	$	(11,919	)	$	20,919
Liabilities and stockholders’ equity
Current liabilities:
	Accounts payable and other current liabilities	$	13	$	251	$	664	$	904	$	—		$	1,832
	Short-term debt and current portion of long-term debt	—		17		2		5		—			24
Total current liabilities		13		268		666		909		—			1,856
Long-term debt		—		2,900		3		641		—			3,544
Other non-current liabilities		39		81		259		366		—			745
Intercompany payables		—		2,860		393		2		(3,255		)	—
Total liabilities exclusive of liabilities under vehicle programs		52		6,109		1,321		1,918		(3,255		)	6,145
Liabilities under vehicle programs:
	Debt	—		16		52		3,443		—			3,511
	Due to Avis Budget Rental Car Funding (AESOP) LLC-related party	—		—		—		8,265		—			8,265
Deferred income taxes		—		—		1,553		174		—			1,727
Other		—		—		—		899		—			899
		—		16		1,605		12,781		—			14,402
Total stockholders’ equity		372		169		4,595		3,900		(8,664		)	372
Total liabilities and stockholders’ equity		$	424	$	6,294	$	7,521	$	18,599	$	(11,919	)	$	20,919

32

As of December 31, 2017

		Parent		Subsidiary Issuers		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations			Total
Assets
Current assets:
	Cash and cash equivalents	$	4	$	14	$	—	$	593	$	—		$	611
	Receivables, net	—		—		255		667		—			922
	Other current assets	4		89		101		339		—			533
Total current assets		8		103		356		1,599		—			2,066
Property and equipment, net		—		167		321		216		—			704
Deferred income taxes		14		704		154		59		—			931
Goodwill		—		—		471		602		—			1,073
Other intangibles, net		—		27		480		343		—			850
Other non-current assets		46		29		16		105		—			196
Intercompany receivables		187		382		1,506		824		(2,899		)	—
Investment in subsidiaries		381		4,681		3,938		—		(9,000		)	—
Total assets exclusive of assets under vehicle programs		636		6,093		7,242		3,748		(11,899		)	5,820
Assets under vehicle programs:
	Program cash	—		—		—		283		—			283
	Vehicles, net	—		34		61		10,531		—			10,626
	Receivables from vehicle manufacturers and other	—		1		—		546		—			547
	Investment in Avis Budget Rental Car Funding (AESOP) LLC-related party	—		—		—		423		—			423
		—		35		61		11,783		—			11,879
Total assets		$	636	$	6,128	$	7,303	$	15,531	$	(11,899	)	$	17,699
Liabilities and stockholders’ equity
Current liabilities:
	Accounts payable and other current liabilities	$	23	$	207	$	552	$	837	$	—		$	1,619
	Short-term debt and current portion of long-term debt	—		17		3		6		—			26
Total current liabilities		23		224		555		843		—			1,645
Long-term debt		—		2,910		3		660		—			3,573
Other non-current liabilities		40		83		216		378		—			717
Intercompany payables		—		2,515		382		2		(2,899		)	—
Total liabilities exclusive of liabilities under vehicle programs		63		5,732		1,156		1,883		(2,899		)	5,935
Liabilities under vehicle programs:
	Debt	—		15		57		2,669		—			2,741
	Due to Avis Budget Rental Car Funding (AESOP) LLC-related party	—		—		—		6,480		—			6,480
	Deferred income taxes	—		—		1,407		187		—			1,594
	Other	—		—		2		374		—			376
		—		15		1,466		9,710		—			11,191
Total stockholders’ equity		573		381		4,681		3,938		(9,000		)	573
Total liabilities and stockholders’ equity		$	636	$	6,128	$	7,303	$	15,531	$	(11,899	)	$	17,699

33

Consolidating Condensed Statements of Cash Flows

Six Months Ended June 30, 2018

	Parent			Subsidiary Issuers			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
Net cash provided by (used in) operating activities	$	75		$	107		$	66		$	968		$	(95	)	$	1,121
Investing activities
Property and equipment additions	—			(33		)	(43		)	(39		)	—			(115		)
Proceeds received on asset sales	—			2			—			4			—			6
Net assets acquired (net of cash acquired)	—			(3		)	(4		)	(21		)	—			(28		)
Other, net	—			—			—			(37		)	—			(37		)
Net cash provided by (used in) investing activities exclusive of vehicle programs	—			(34		)	(47		)	(93		)	—			(174		)
Vehicle programs:
Investment in vehicles	—			(1		)	(1		)	(8,357		)	—			(8,359		)
Proceeds received on disposition of vehicles	—			17			—			4,790			—			4,807
Investment in debt securities of Avis Budget Rental Car Funding (AESOP) LLC—related party	—			—			—			(22		)	—			(22		)
	—			16			(1		)	(3,589		)	—			(3,574		)
Net cash provided by (used in) investing activities	—			(18		)	(48		)	(3,682		)	—			(3,748		)
Financing activities
Proceeds from long-term borrowings	—			81			—			—			—			81
Payments on long-term borrowings	—			(92		)	(1		)	(1		)	—			(94		)
Net change in short-term borrowings	—			—			—			(2		)	—			(2		)
Repurchases of common stock	(78		)	—			—			—			—			(78		)
Debt financing fees	—			(9		)	—			—			—			(9		)
Other, net	2			(71		)	(12		)	(12		)	95			2
Net cash provided by (used in) financing activities exclusive of vehicle programs	(76		)	(91		)	(13		)	(15		)	95			(100		)
Vehicle programs:
Proceeds from borrowings	—			—			—			10,145			—			10,145
Payments on borrowings	—			(1		)	(5		)	(7,637		)	—			(7,643		)
Debt financing fees	—			—			—			(13		)	—			(13		)
	—			(1		)	(5		)	2,495			—			2,489
Net cash provided by (used in) financing activities	(76		)	(92		)	(18		)	2,480			95			2,389
Effect of changes in exchange rates on cash and cash equivalents, program and restricted cash	—			—			—			(2		)	—			(2		)
Net decrease in cash and cash equivalents, program and restricted cash	(1		)	(3		)	—			(236		)	—			(240		)
Cash and cash equivalents, program and restricted cash, beginning of period	4			14			—			883			—			901
Cash and cash equivalents, program and restricted cash, end of period	$	3		$	11		$	—		$	647		$	—		$	661

34

Six Months Ended June 30, 2017

	Parent			Subsidiary Issuers			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
Net cash provided by (used in) operating activities	$	9		$	(41	)	$	47		$	1,124		$	—		$	1,139
Investing activities
Property and equipment additions	—			(22		)	(34		)	(30		)	—			(86		)
Proceeds received on asset sales	—			1			—			3			—			4
Net assets acquired (net of cash acquired)	—			—			(4		)	(10		)	—			(14		)
Intercompany loan receipts (advances)	—			—			(1		)	(313		)	314			—
Other, net	100			—			—			—			(100		)	—
Net cash provided by (used in) investing activities exclusive of vehicle programs	100			(21		)	(39		)	(350		)	214			(96		)
Vehicle programs:
Investment in vehicles	—			1			(2		)	(8,115		)	—			(8,116		)
Proceeds received on disposition of vehicles	—			31			—			5,028			—			5,059
Investment in debt securities of Avis Budget Rental Car Funding (AESOP) LLC—related party	—			—			—			(33		)	—			(33		)
	—			32			(2		)	(3,120		)	—			(3,090		)
Net cash provided by (used in) investing activities	100			11			(41		)	(3,470		)	214			(3,186		)
Financing activities
Proceeds from long-term borrowings	—			325			—			264			—			589
Payments on long-term borrowings	—			(396		)	(1		)	(194		)	—			(591		)
Net change in short-term borrowings	—			—			—			(1		)	—			(1		)
Intercompany loan borrowings (payments)	—			313			—			1			(314		)	—
Repurchases of common stock	(109		)	—			—			—			—			(109		)
Debt financing fees	—			(3		)	—			(5		)	—			(8		)
Other, net	—			(100		)	—			—			100			—
Net cash provided by (used in) financing activities exclusive of vehicle programs	(109		)	139			(1		)	65			(214		)	(120		)
Vehicle programs:
Proceeds from borrowings	—			—			—			11,255			—			11,255
Payments on borrowings	—			—			(5		)	(8,983		)	—			(8,988		)
Debt financing fees	—			—			—			(8		)	—			(8		)
	—			—			(5		)	2,264			—			2,259
Net cash provided by (used in) financing activities	(109		)	139			(6		)	2,329			(214		)	2,139
Effect of changes in exchange rates on cash and cash equivalents, program and restricted cash	—			—			—			36			—			36
Net increase in cash and cash equivalents, program and restricted cash	—			109			—			19			—			128
Cash and cash equivalents, program and restricted cash, beginning of period	3			12			—			705			—			720
Cash and cash equivalents, program and restricted cash, end of period	$	3		$	121		$	—		$	724		$	—		$	848

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19. Subsequent Events

In July 2018, the Company completed the acquisition of Morini S.p.A., a provider of vehicles primarily in Northern Italy, for approximately €35 million (approximately $41 million) plus potential earn-out payments of €5 million (approximately $6 million) based on Morini S.p.A.’s performance over the next two years.

In August 2018, the Company’s Board of Directors increased the Company’s share repurchase program authorization by $250 million.

* * * *

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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 Financial Statements and accompanying Notes thereto included elsewhere herein, and with our 2017 Form 10-K. Our actual results of operations may differ materially from those discussed in 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 “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” “Risk Factors” and other portions of our 2017 Form 10-K. Unless otherwise 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 globally recognized brands in the vehicle rental and other mobility solutions industry, Avis, Budget and Zipcar together with several brands well recognized in their respective markets, including Payless in the U.S. and certain other regions, Maggiore in Italy, FranceCars in France and Apex in both New Zealand and Australia. We are a leading vehicle rental operator in North America, Europe, Australasia and certain other regions we serve, with an average rental fleet of more than 620,000 vehicles. We also license the use of our trademarks to licensees in the areas in which we do not operate directly. We and our licensees operate our brands in approximately 180 countries throughout the world.

Our Segments

We categorize our operations into two reportable business segments: Americas, consisting primarily of our vehicle rental operations in North America, South America, Central America and the Caribbean, car sharing operations in certain of these markets, and licensees in the areas in which the Company does not operate directly; and International, consisting primarily of our vehicle rental operations in Europe, the Middle East, Africa, Asia and Australasia, car sharing operations in certain of these markets, and licensees in the areas in which the Company does not operate directly.

Business and Trends

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

• time & mileage 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 certain other locations; and

• sales of loss damage waivers and insurance and other supplemental items in conjunction with vehicle rentals.

In addition, we receive royalty revenue from our licensees in conjunction with their vehicle rental transactions.

Our operating results are subject to variability due to macroeconomic conditions, seasonality 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.

Thus far in 2018, worldwide demand for vehicle rental and other mobility solutions has increased and used-vehicle values in the U.S. have been stable. We expect such economic conditions to continue throughout 2018, counterbalanced by the incremental impact of rising interest rates, primarily in the Americas, and certain other headwinds. We will continue to pursue opportunities to enhance our profitability and return on invested capital.

37

Our objective is to drive sustainable, profitable growth by delivering strategic initiatives aimed at winning customers through differentiated brands and products, increasing our margins via revenue growth and operational efficiency and enhancing our leadership in the mobility landscape. Our strategies are intended to support and strengthen our brands, to grow our earnings and Adjusted EBITDA over time and to achieve growth and efficiency opportunities as mobility solutions continue to evolve. We operate in a highly competitive industry and we expect to continue to face challenges and risks in managing our business. 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 investment and operations; appropriate investments in technology; and adjustments in the size and the nature and terms of our relationships with vehicle manufacturers.

In 2017, the U.S. enacted Public Law 115-97, commonly referred to as the U.S. Tax Reform Act (the “Tax Act”). The Tax Act makes broad and complex changes to U.S. corporate tax laws. We expect our 2018 provision for income taxes to be impacted by the reduced U.S. corporate tax rate, the inclusion in the U.S. tax base of certain foreign subsidiary earnings and the limitations on the deductibility of certain business expenses. While we are still evaluating the impact of these changes, certain of these changes could have a material impact on our financial condition or results of operations.

During the six months ended June 30, 2018:

• Our revenues totaled $4.3 billion and increased 5% compared to the six months ended June 30, 2017 due to higher rental volumes and a 3% benefit from currency exchange rate movements.

• Our net loss was $61 million, representing a $43 million year-over-year improvement in earnings, and our Adjusted EBITDA was $163 million, representing a $50 million year-over-year increase, driven by higher revenues and Americas’ lower per-unit fleet costs and higher utilization.

• We repurchased approximately $67 million of our common stock, reducing our shares outstanding by approximately 1.6 million shares, or 2%.

• We amended the terms of our Floating Rate Term Loan due 2022 and our Senior revolving credit facility maturing 2021. We extended our Floating Rate Term Loan maturity term to 2025 and our Senior revolving credit facility maturity to 2023.

RESULTS OF OPERATIONS

We measure performance principally using the following key operating statistics: (i) rental days, which represent the total number of days (or portion thereof) a vehicle was rented, (ii) revenue per day, which represents revenues divided by rental days, (iii) vehicle utilization, which represents rental days divided by available rental days, available rental days is defined as the average number of vehicles in our rental fleet times the number of days in the period, and (iv) per-unit fleet costs, which represent vehicle depreciation, lease charges and gain or loss on vehicle sales, divided by the average number of vehicles in our rental fleet. Our rental days, revenue per day and vehicle utilization operating statistics are all calculated based on the actual rental of the vehicle during a 24-hour period. We believe that this methodology provides us 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 present currency exchange rate effects to provide a method of assessing how our business performed excluding the effects of foreign currency rate fluctuations. Currency exchange rate effects are calculated by translating the current-year results at the prior-period average exchange rate plus any related gains and losses on currency hedges.

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 revenues and “Adjusted EBITDA,” which we define as income from continuing operations before non-vehicle related depreciation and amortization, any impairment charges, restructuring and other related charges, early extinguishment of debt costs, non-vehicle related interest, transaction-related costs, net charges for unprecedented personal-injury legal matters, non-operational charges related to shareholder activist activity and

38

income taxes. Net charges for unprecedented personal-injury legal matters are recorded within operating expenses in our consolidated condensed statement of operations. We have revised our definition of Adjusted EBITDA to exclude non-operational charges related to shareholder activist activity. Non-operational charges related to shareholder activist activity include third party advisory, legal and other professional service fees and are recorded within selling, general and administrative expenses in our consolidated condensed statement of operations. We did not revise prior years’ Adjusted EBITDA amounts because there were no costs similar in nature to these costs.  We believe Adjusted EBITDA is useful as a supplemental measure in evaluating the performance of our operating businesses and in comparing our results from period to period. We also believe that Adjusted EBITDA is useful to investors because it allows investors to assess our results of operations and financial condition on the same basis that management uses internally. Adjusted EBITDA is a non-GAAP measure and should not be considered in isolation or as a substitute for net income or other income statement data prepared in accordance with U.S. GAAP. Our presentation of Adjusted EBITDA may not be comparable to similarly-titled measures used by other companies.

Three Months Ended June 30, 2018 vs. Three Months Ended June 30, 2017

Our consolidated condensed results of operations comprised the following:

		Three Months Ended   June 30,
		2018		2017		$ Change			% Change
Revenues		$	2,328	$	2,238	$	90		4	%
Expenses
	Operating	1,175		1,108		(67		)	(6	%)
	Vehicle depreciation and lease charges, net	591		597		6			1	%
	Selling, general and administrative	321		293		(28		)	(10	%)
	Vehicle interest, net	80		73		(7		)	(10	%)
	Non-vehicle related depreciation and amortization	67		65		(2		)	(3	%)
	Interest expense related to corporate debt, net	49		48		(1		)	(2	%)
	Restructuring and other related charges	4		38		34			89	%
	Transaction-related costs, net	3		5		2			40	%
Total expenses		2,290		2,227		(63		)	(3	%)
Income before income taxes		38		11		27			n/m
Provision for income taxes		12		8		(4		)	(50	%)
Net income		$	26	$	3	$	23		n/m

__________

n/m Not meaningful.

During the three months ended June 30, 2018, our revenues increased as a result of a 4% increase in rental volumes and a $41 million benefit from currency exchange rate movements. Total expenses increased due to increased rental volumes, higher vehicle interest rates, increased marketing costs and commissions, partially offset by lower per-unit fleet costs in the Americas. These increases include a $23 million negative effect from currency exchange rate movements. Our effective tax rates were provisions of 32% and 73% during the three months ended June 30, 2018 and 2017, respectively. As a result of these items, our net income increased by $23 million.

During the three months ended June 30, 2018, the Company reported earnings of $0.32 per diluted share, which includes after-tax restructuring and other related charges of ($0.05) per share and after-tax transaction-related costs of ($0.03) per share. During the three months ended June 30, 2017, the Company reported earnings of $0.04 per diluted share, which includes after-tax restructuring and other related charges of ($0.28) per share, after-tax transaction-related costs of ($0.05) per share and after-tax reversal of charges for legal matter of $0.19 per share.

During the three months ended June 30, 2018:

• Operating expenses increased to 50.5% of revenue compared to 49.5% during the similar period in 2017,

39

due to recoverable insurance proceeds recognized in connection with an unprecedented personal-injury legal matter recorded in 2017, partially offset by lower maintenance and damage costs in 2018.

• Vehicle depreciation and lease charges were reduced to 25.4% of revenue compared to 26.7% during the similar period in 2017, primarily due to Americas’ lower per-unit fleet costs and higher utilization.

• Selling, general and administrative costs increased to 13.8% of revenue compared to 13.1% during the similar period in 2017, due to higher marketing costs and commissions.

• Vehicle interest costs increased to 3.5% of revenue compared to 3.3% during the similar period in 2017.

Following is a more detailed discussion of the results of each of our reportable segments and reconciliation of net income to Adjusted EBITDA: 

			Three Months Ended June 30,
			2018					2017
			Revenues		Adjusted EBITDA			Revenues		Adjusted EBITDA
Americas			$	1,590	$	107		$	1,565	$	96
International			738		71			673		59
Corporate and Other (a)			—		(17		)	—		(15		)
	Total Company		$	2,328	$	161		$	2,238	$	140
			Reconciliation to Adjusted EBITDA
								2018		2017
Net income								$	26	$	3
Provision for income taxes								12		8
Income before income taxes								38		11
Add:		Non-vehicle related depreciation and amortization						67		65
		Interest expense related to corporate debt, net						49		48
		Restructuring and other related charges						4		38
		Transaction-related costs, net (b)						3		5
		Charges for legal matter, net (c)						—		(27		)
Adjusted EBITDA								$	161	$	140

__________

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

^(b)  Primarily comprised of acquisition- and integration-related expenses.

^(c)  Reported within operating expenses in our consolidated condensed results of operations.

Americas

	Three Months Ended June 30,
	2018		2017		% Change
Revenues	$	1,590	$	1,565	2	%
Adjusted EBITDA	107		96		11	%

Revenues increased 2% during the three months ended June 30, 2018, compared to the similar period in 2017, primarily due to a 2% increase in rental volumes.

Adjusted EBITDA was 11% higher during the three months ended June 30, 2018, compared to the similar period in 2017, due to increased revenues, 7% lower per-unit fleet costs and a 70 basis points increase in utilization, partially offset by increased marketing costs and commissions, and higher vehicle interest rates.

During the three months ended June 30, 2018:

• Operating expenses increased to 49.2% of revenue compared to 47.6% during the similar period in 2017, due to recoverable insurance proceeds recognized in connection with an unprecedented personal-injury

40

legal matter recorded in 2017, partially offset by lower maintenance and damage costs in 2018.

• Vehicle depreciation and lease charges were reduced to 27.5% of revenue compared to 29.5% during the similar period in 2017, due to lower per-unit fleet costs and higher utilization.

• Selling, general and administrative costs increased to 12.3% of revenue compared to 11.3% during the similar period in 2017, due to higher marketing costs and commissions.

• Vehicle interest costs increased to 4.3% of revenue compared to 3.8% during the similar period in 2017, primarily due to higher interest rates.

International

	Three Months Ended June 30,
	2018		2017		% Change
Revenues	$	738	$	673	10	%
Adjusted EBITDA	71		59		20	%

Revenues were 10% higher during the three months ended June 30, 2018, compared to the similar period in 2017, due to 6% higher rental volumes and a $40 million benefit from currency exchange rate movements, partially offset by a 2% decrease in revenue per day excluding currency exchange rate movements.

Adjusted EBITDA increased 20% during the three months ended June 30, 2018, compared to the similar period in 2017, primarily due to increased revenues and a $19 million benefit from currency exchange rate movements.

During the three months ended June 30, 2018:

• Operating expenses decreased to 52.7% of revenue compared to 53.3% during the similar period in 2017, due to currency hedge gains, partially offset by higher maintenance and damage costs.

• Vehicle depreciation and lease charges increased to 20.8% of revenue compared to 20.3% during the similar period in 2017, primarily due to lower revenue per day excluding exchange rate movements.

• Selling, general and administrative costs were reduced to 15.2% of revenue compared to 15.6% during the similar period in 2017, due to increased revenues.

• Vehicle interest costs were 1.7% of revenue compared to 2.1% during the similar period in 2017.

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Six Months Ended June 30, 2018 vs. Six Months Ended June 30, 2017

Our consolidated results of operations comprised the following:

		Six Months Ended   June 30,
		2018			2017			$ Change			% Change
Revenues		$	4,296		$	4,077		$	219		5	%
Expenses
	Operating	2,267			2,157			(110		)	(5	%)
	Vehicle depreciation and lease charges, net	1,106			1,101			(5		)	0	%
	Selling, general and administrative	617			555			(62		)	(11	%)
	Vehicle interest, net	152			137			(15		)	(11	%)
	Non-vehicle related depreciation and amortization	128			128			—			0	%
	Interest expense related to corporate debt, net:
	Interest expense	95			97			2			2	%
	Early extinguishment of debt	5			3			(2		)	(67	%)
	Restructuring and other related charges	10			45			35			78	%
	Transaction-related costs, net	7			8			1			13	%
Total expenses		4,387			4,231			(156		)	(4	%)
Loss before income taxes		(91		)	(154		)	63			41	%
Benefit from income taxes		(30		)	(50		)	(20		)	(40	%)
Net loss		$	(61	)	$	(104	)	$	43		41	%

During the six months ended June 30, 2018, our revenues increased as a result of a 4% increase in rental volumes and a $104 million benefit from currency exchange rate movements, partially offset by a 1% reduction in revenue per day excluding exchange rate movements. Total expenses increased as a result of increased volumes, increased marketing costs and commissions, and higher vehicle interest rates, partially offset by a 2% decrease in per-unit fleet costs (including a 2% negative impact from currency exchange rate movements). These increases include a $83 million negative effect from currency exchange rate movements. Our effective tax rates were a benefit of 33% and 32% during the six months ended June 30, 2018 and 2017, respectively. As a result of these items, our net loss decreased by $43 million.

During the six months ended June 30, 2018, the Company reported a loss of $0.75 per diluted share, which includes after-tax restructuring and other related charges of ($0.10) per share, after-tax non-operational charges related to shareholder activist activity of ($0.08) per share, after-tax transaction-related costs of ($0.07) per share and after-tax debt extinguishment costs of ($0.05) per share. During the six months ended June 30, 2017, the Company reported a loss of $1.22 per diluted share, which includes after-tax restructuring and other related charges of ($0.33) per share, after-tax transaction-related costs of ($0.08) per share, after-tax debt extinguishment costs of ($0.02) per share and after-tax reversal of charges for legal matter of $0.10 per share. 

During the six months ended June 30, 2018:

• Operating expenses were 52.8% of revenue compared to 52.9% during the similar period in 2017.

• Vehicle depreciation and lease charges decreased to 25.8% of revenue compared to 27.0% during the similar period in 2017, primarily due to the Americas’ lower per-unit fleet costs and higher utilization.

• Selling, general and administrative costs increased to 14.4% of revenue compared to 13.6% during the similar period in 2017, primarily due to higher marketing costs and commissions.

• Vehicle interest costs were 3.5% of revenue compared to 3.4% during the similar period in 2017.

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Following is a more detailed discussion of the results of each of our reportable segments and reconciliation of net loss to Adjusted EBITDA: 

			Six Months Ended June 30,
			2018					2017
			Revenues		Adjusted EBITDA			Revenues			Adjusted EBITDA
Americas			$	2,938	$	122		$	2,879		$	76
International			1,358		74			1,198			66
Corporate and Other (a)			—		(33		)	—			(29		)
	Total Company		$	4,296	$	163		$	4,077		$	113
			Reconciliation to Adjusted EBITDA
								2018			2017
Net loss								$	(61	)	$	(104	)
Benefit from income taxes								(30		)	(50		)
Loss before income taxes								(91		)	(154		)
Add:		Non-vehicle related depreciation and amortization						128			128
		Interest expense related to corporate debt, net
		Interest expense						95			97
		Early extinguishment of debt						5			3
		Non-operational charges related to shareholder activist activity (b)						9			—
		Restructuring and other related charges						10			45
		Transaction-related costs, net (c)						7			8
		Charges for legal matter, net (d)						—			(14		)
Adjusted EBITDA								$	163		$	113

_________

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

^(b)  Reported within selling, general and administrative expenses in our consolidated condensed results of operations.

^(c)  Primarily comprised of acquisition- and integration-related expenses.

^(d)  Reported within operating expenses in our consolidated condensed results of operations.

Americas

	Six Months Ended June 30,
	2018		2017		% Change
Revenue	$	2,938	$	2,879	2	%
Adjusted EBITDA	122		76		61	%

Revenues increased 2% during the six months ended June 30, 2018, compared to the similar period in 2017, primarily due to a 3% increase in rental volumes.

Adjusted EBITDA increased 61% in the six months ended June 30, 2018, compared to the similar period in 2017, due to higher revenues, 5% lower per-unit fleet costs and a 90 basis points increase in utilization. Currency movements increased Adjusted EBITDA by $4 million.

During the six months ended June 30, 2018:

• Operating expenses decreased to 51.1% of revenue compared to 51.3% during the similar period in 2017.

• Vehicle depreciation and lease charges decreased to 28.0% of revenue compared to 29.8% during the similar period in 2017, primarily due to lower per-unit fleet costs and higher utilization.

• Selling, general and administrative costs increased to 12.5% of revenue compared to 11.9% during the similar period in 2017, due to higher marketing costs and commissions.

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• Vehicle interest costs increased to 4.2% of revenue compared to 3.9% during the similar period in 2017, primarily due to higher interest rates.

International

	Six Months Ended June 30,
	2018		2017		% Change
Revenue	$	1,358	$	1,198	13	%
Adjusted EBITDA	74		66		12	%

Revenues increased 13% during the six months ended June 30, 2018, compared to the similar period in 2017, primarily due to a 7% increase in rental volumes and a $101 million favorable effect from currency movements, partially offset by a 2% reduction in revenue per day excluding exchange rate movements.

Adjusted EBITDA increased 12% during the six months ended June 30, 2018, compared to the similar period in 2017, due to increased revenues and a $23 million favorable effect from currency movements, partially offset by increased maintenance and damage costs.

During the six months ended June 30, 2018:

• Operating expenses were reduced to 55.8% of revenue compared to 56.4% during the similar period in 2017, due to currency hedge gains, partially offset by higher maintenance and damage costs.

• Vehicle depreciation and lease charges increased to 20.8% of revenue compared to 20.3% during the similar period in 2017, primarily due to lower revenue per day excluding exchange rate movements.

• Selling, general and administrative costs increased to 15.9% of revenue compared to 15.6% during the similar period in 2017, due to higher marketing costs and commissions.

• Vehicle interest costs were 2.0% of revenue compared to 2.1% during the similar period in 2017.

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

	June 30,   2018		December 31,    2017		Change
Total assets exclusive of assets under vehicle programs	$	6,193	$	5,820	$	373
Total liabilities exclusive of liabilities under vehicle programs	6,145		5,935		210
Assets under vehicle programs	14,726		11,879		2,847
Liabilities under vehicle programs	14,402		11,191		3,211
Stockholders’ equity	372		573		(201		)

Total assets exclusive of assets under vehicle programs increased primarily due to a seasonal increase in value-added tax receivables, which are recoverable from government agencies. Total liabilities exclusive of liabilities under vehicle programs increased due to a seasonal increase in accounts payable and other current liabilities.

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. The decrease in stockholders’ equity is due to our net

44

loss, our repurchases of common stock and the adoption of ASU 2014-09 (See Note 1 to our Consolidated Condensed Financial Statements).

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 six months ended June 30, 2018, we amended the terms of our Floating Rate Term Loan due 2022 and our Senior revolving credit facility maturing 2021 and extended the maturity to 2025 and 2023, respectively. In addition, our Avis Budget Rental Car Funding subsidiary issued approximately $400 million in asset-backed notes with an expected final payment date of September 2023 and a weighted average interest rate of 4%. The proceeds from these borrowings were used to fund the repayment of maturing vehicle-back debt and the acquisition of rental cars in the United States. We also increased our capacity under our European rental fleet securitization program by €150 million (approximately $175 million), the proceeds of which were used to finance fleet purchases for certain of our European operations, and extended its maturity to 2021.

CASH FLOWS

The following table summarizes our cash flows:

		Six Months Ended June 30,
		2018			2017			Change
Cash provided by (used in):
	Operating activities	$	1,121		$	1,139		$	(18	)
	Investing activities	(3,748		)	(3,186		)	(562		)
	Financing activities	2,389			2,139			250
Effect of changes in exchange rates on cash and cash equivalents, program and restricted cash		(2		)	36			(38		)
Net (decrease) increase in cash and cash equivalents, program and restricted cash		(240		)	128			(368		)
Cash and cash equivalents, program and restricted cash, beginning of period		901			720			181
Cash and cash equivalents, program and restricted cash, end of period		$	661		$	848		$	(187	)

The decrease in cash provided by operating activities during the six months ended June 30, 2018 compared with the same period in 2017 is principally due to changes in the components of working capital.

The increase in cash used in investing activities during the six months ended June 30, 2018 compared with the same period in 2017 is primarily due to an increase in investment in vehicles and a decrease in proceeds received on the disposition of vehicles.

The increase in cash provided by financing activities during the six months ended June 30, 2018 compared with the same period in 2017 is primarily due to an increase in net borrowings under vehicle programs.

DEBT AND FINANCING ARRANGEMENTS

At June 30, 2018, we had approximately $15.4 billion of indebtedness, including corporate indebtedness of approximately $3.6 billion and debt under vehicle programs of approximately $11.8 billion. For detailed information regarding our debt and borrowing arrangements, see Notes 11 and 12 to our Consolidated Condensed Financial Statements.

LIQUIDITY RISK

Our primary liquidity needs include the procurement of rental vehicles to be used in our operations, servicing of corporate and vehicle-related debt and the payment of operating expenses. Our primary sources of funding are operating revenues, cash received upon the sale of vehicles, borrowings under our vehicle-backed borrowing

45

arrangements and our senior revolving credit facility, and other financing activities.

As a result of the Tax Act, we are subject to a one-time transition tax on cumulative earnings of foreign subsidiaries. We recorded a provisional charge for the one-time transition tax of $104 million in the fourth quarter of 2017. The Tax Act provides companies the ability to offset the one-time transition tax with available tax attributes or elect to pay the tax over an eight year period. Although the Tax Act generally eliminates U.S. federal income taxes on dividends from foreign subsidiaries effective for years beginning January 1, 2018, we continue to evaluate the expected manner of recovery to determine whether or not to continue to assert indefinite reinvestment on a part or all of our undistributed foreign earnings. This requires us to analyze our global working capital and cash requirements in light of the Tax Act and the potential tax liabilities attributable to a repatriation to the U.S., such as foreign withholding taxes and U.S. tax on currency transaction gains or losses. We did not record any deferred taxes attributable to our investments in our foreign subsidiaries. We will record the tax effects of any change in our assertion in the period that the analysis is complete.

As discussed above, as of June 30, 2018, we have cash and cash equivalents of approximately $0.5 billion, available borrowing capacity under our committed credit facilities of approximately $0.5 billion and available capacity under our vehicle programs of approximately $1.5 billion.

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 being unable or unwilling to honor their obligations to repurchase or guarantee the depreciation on the related program vehicles and (iv) disruption in our ability to obtain financing due to negative credit events specific to us or affecting the overall debt market.

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 June 30, 2018, we were in compliance with the financial covenants governing our indebtedness. For additional information regarding our liquidity risks, see Part I, Item 1A, “Risk Factors” of our 2017 Form 10-K.

CONTRACTUAL OBLIGATIONS

Our future contractual obligations have not changed significantly from the amounts reported within our 2017 Form 10-K with the exception of our commitment to purchase vehicles, which decreased by approximately $5.3 billion from December 31, 2017, to approximately $2.8 billion at June 30, 2018. 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 11 and 12 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 2017 Form 10-K are the accounting policies (related to goodwill and other indefinite-lived intangible assets, 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 2018 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.

46

New Accounting Standards

For detailed information regarding new accounting standards and their impact on our business, see Note 1 to our Consolidated Condensed Financial Statements.

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 assess our market risks based on changes in interest and currency exchange rates utilizing a sensitivity analysis that measures the potential impact on earnings, fair values and cash flows based on a hypothetical 10% change (increase and decrease) in interest and foreign currency exchange rates. We used June 30, 2018 market rates to perform a sensitivity analysis separately for each of these market risk exposures. We have determined, through such analyses, that the impact of a 10% change in interest or currency exchange rates on our results of operations, balance sheet and cash flows would not be material. Additionally, 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 10% change in the price of unleaded gasoline would not have a material impact on our earnings for the period ended June 30, 2018. For additional information regarding our long-term borrowings and financial instruments, see Notes 11, 12 and 16 to our Consolidated Condensed Financial Statements.

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 June 30, 2018.

(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.

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PART II – OTHER INFORMATION

Item 1. Legal Proceedings

During the quarter ended June 30, 2018, the Company had no material developments to report with respect to its legal proceedings. For additional information regarding the Company’s legal proceedings, see Note 13 to our Consolidated Condensed Financial Statements and refer to the Company’s 2017 Form 10-K.

Item 1A. Risk Factors

During the quarter ended June 30, 2018, the Company had no material developments to report with respect to its risk factors. For additional information regarding the Company’s risk factors, please refer to the Company’s 2017 Form 10-K.

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

The following is a summary of the Company’s common stock repurchases by month for the quarter ended June 30, 2018:

	Total Number of Shares Purchased(a)	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
April 2018	—	$	—	—	$	100,501,894
May 2018	1,148,192	43.11		1,148,192	51,002,509
June 2018	475,609	37.64		475,609	33,099,564
Total	1,623,801	$	41.51	1,623,801	$	33,099,564

__________

^(a)  Excludes, for the three months ended June 30, 2018, 395 shares which were withheld by the Company to satisfy employees’ income tax liabilities attributable to the vesting of restricted stock unit awards.

As of June 30, 2018, the Company’s Board of Directors has authorized the repurchase of up to $1.5 billion of its common stock under a plan originally approved in 2013 and subsequently expanded. In August 2018, the Company’s Board of Directors increased the Company’s share repurchase program authorization by $250 million. 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.

48

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:	August 8, 2018
		/s/ Martyn Smith
		Martyn Smith
		Interim Chief Financial Officer
Date:	August 8, 2018
		/s/ David T. Calabria
		David T. Calabria
		Senior Vice President and
		Chief Accounting Officer

49

Exhibit Index

Exhibit No.	Description
3.1	Certificate of Elimination of Series S Preferred Stock of Avis Budget Group, Inc., dated April 16, 2018 (Incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K dated April 16, 2018).
3.2	Amended and Restated By-Laws of Avis Budget Group, Inc., as of May 23, 2018 (Incorporated by reference to Exhibit 3.2 to the Company’s Current Report on Form 8-K dated May 24, 2018).
4.1	Amendment No. 1, dated April 16, 2018, to Rights Agreement, dated as of January 14, 2018, between Avis Budget Group, Inc. and Computershare Trust Company, N.A. (Incorporated by reference to Exhibit 4.1 to the Company’s Current Report on Form 8-K dated April 16, 2018).
10.1	Second Amended and Restated Cooperation Agreement, dated April 16, 2018, by and among Avis Budget Group, Inc. and SRS Investment Management, LLC (Incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K dated April 16, 2018).
10.2	Series 2018-1 Supplement, dated as of April 30, 2018, between Avis Budget Rental Car Funding (AESOP) LLC and The Bank of New York Mellon Trust Company, N.A., as trustee and as Series 2018-1 Agent. (Incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K dated May 4, 2018).
10.3	Separation and Consulting Agreement between Avis Budget Group, Inc. and Ronald L .Nelson, dated May 23, 2018 (Incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K dated May 24, 2018).
10.4	Tenth Master Amendment and Restatement Deed, by and among CarFin Finance International DAC, Credit Agricole Corporate And Investment Bank, Deutsche Trustee Company Limited, Credit Agricole Corporate And Investment Bank, the Opcos, Servicers, Lessees and FleetCos listed therein, Avis Budget Car Rental, LLC, Avis Finance Company Limited, Avis Budget EMEA Limited, the Account Banks listed therein, Deutsche Bank Ag, London Branch, the Senior Noteholders and certain other entities named therein, dated May 30, 2018. (Incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K dated June 5, 2018). *
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 Interim 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.

___________

* Confidential treatment has been requested for certain portions of this Exhibit pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended, which portions have been omitted and filed separately with the Securities and Exchange Commission.

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EX-12

Exhibit 12

Avis Budget Group, Inc.

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(Dollars in millions)

	Six Months Ended   June 30,
	2018			2017
Earnings available to cover fixed charges:
Loss before income taxes	$	(91	)	$	(154	)
Plus: Fixed charges	319			304
Earnings available to cover fixed charges	$	228		$	150
Fixed charges (a):
Interest, including amortization of deferred financing costs	$	257		$	244
Interest portion of rental payment	62			60
Total fixed charges	$	319		$	304
Ratio of earnings to fixed charges (b)	—			—

__________

^(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:

	Six Months Ended   June 30,
	2018		2017
Related to debt under vehicle programs	$	155	$	143
All other	102		101
	$	257	$	244

^(b) Earnings were not sufficient to cover fixed charges for the six months ended June 30, 2018 and 2017 by $91 million and $154 million, respectively.

EX-31.1

Exhibit 31.1

SECTION 302 CERTIFICATION

I, Larry D. De Shon, 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: August 8, 2018

/s/  Larry D. De Shon

President and Chief Executive Officer

EX-31.2

Exhibit 31.2

SECTION 302 CERTIFICATION

I, Martyn Smith, 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: August 8, 2018

/s/   Martyn Smith

Interim 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 June 30, 2018, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), Larry D. De Shon, as Chief Executive Officer of the Company, and Martyn Smith, as Interim 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/ LARRY D. DE SHON

Larry D. De Shon

President and Chief Executive Officer

August 8, 2018

/s/ MARTYN SMITH

Martyn Smith

Interim Chief Financial Officer

August 8, 2018

XML

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Jul. 31, 2018
Document Documentand Entity Information [Abstract]
Document Period End Date	Jun. 30, 2018
Document Type	10-Q
Amendment Flag	false
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q2
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		79,194,210

XML

CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenues
Revenues	$ 2,328	$ 2,238	$ 4,296	$ 4,077
Expenses
Operating	1,175	1,108	2,267	2,157
Vehicle depreciation and lease charges, net	591	597	1,106	1,101
Selling, general and administrative	321	293	617	555
Vehicle interest, net	80	73	152	137
Non-vehicle related depreciation and amortization	67	65	128	128
Interest expense	49	48	95	97
Early extinguishment of debt	0	0	5	3
Restructuring and other related charges	4	38	10	45
Transaction-related costs, net	3	5	7	8
Total expenses	2,290	2,227	4,387	4,231
Income (loss) before income taxes	38	11	(91)	(154)
Provision for (benefit from) income taxes	12	8	(30)	(50)
Net income (loss)	26	3	(61)	(104)
Comprehensive income (loss)	$ (24)	$ 51	$ (103)	$ (28)
Earnings (loss) per share
Basic	$ 0.33	$ 0.04	$ (0.75)	$ (1.22)
Diluted	$ 0.32	$ 0.04	$ (0.75)	$ (1.22)

XML

CONSOLIDATED CONDENSED BALANCE SHEETS - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 489	$ 611
Receivables, net	902	922
Other current assets	832	533
Total current assets	2,223	2,066
Property and equipment, net	715	704
Deferred income taxes	1,120	931
Goodwill	1,049	1,073
Other intangibles, net	843	850
Other non-current assets	243	196
Total assets exclusive of assets under vehicle programs	6,193	5,820
Assets under vehicle programs:
Program cash	161	283
Vehicles, net	13,867	10,626
Receivables from vehicle manufacturers and other	253	547
Investment in Avis Budget Rental Car Funding (AESOP) LLC—related party	445	423
Total assets under vehicle programs:	14,726	11,879
Total assets	20,919	17,699
Current liabilities:
Accounts payable and other current liabilities	1,832	1,619
Short-term debt and current portion of long-term debt	24	26
Total current liabilities	1,856	1,645
Long-term debt	3,544	3,573
Other non-current liabilities	745	717
Total liabilities exclusive of liabilities under vehicle programs	6,145	5,935
Liabilities under vehicle programs:
Debt	3,511	2,741
Debt due to Avis Budget Rental Car Funding (AESOP) LLC—related party	8,265	6,480
Deferred income taxes	1,727	1,594
Other	899	376
Total Liabilities under vehicle programs	14,402	11,191
Commitments and contingencies (Note 13)
Stockholders’ equity:
Preferred stock, $0.01 par value—authorized 10 shares; none issued and outstanding, at each date	0	0
Common stock, $0.01 par value—authorized 250 shares; issued 137 shares, at each date	1	1
Additional paid-in capital	6,779	6,820
Accumulated deficit	(1,316)	(1,222)
Accumulated other comprehensive loss	(72)	(24)
Treasury stock, at cost—57 and 56 shares, respectively	(5,020)	(5,002)
Total stockholders’ equity	372	573
Total liabilities and stockholders’ equity	$ 20,919	$ 17,699

XML

CONSOLIDATED CONDENSED BALANCE SHEETS (Parenthetical) - $ / shares shares in Millions	Jun. 30, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	10	10
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	250
Common stock, shares issued	137	137
Treasury stock, shares	57	56

XML

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Statement of Cash Flows [Abstract]
Document Fiscal Year Focus	2018
Operating activities
Net income (loss)	$ (61)	$ (104)
Adjustments to reconcile net loss to net cash provided by operating activities:
Vehicle depreciation	996	953
(Gain) loss on sale of vehicles, net	(10)	51
Non-vehicle related depreciation and amortization	128	128
Stock-based compensation	12	7
Amortization of debt financing fees	13	17
Early extinguishment of debt	5	3
Net change in assets and liabilities:
Receivables	(68)	(36)
Income taxes and deferred income taxes	(49)	(91)
Accounts payable and other current liabilities	141	112
Other, net	14	99
Net cash provided by operating activities	1,121	1,139
Investing activities
Property and equipment additions	(115)	(86)
Proceeds received on asset sales	6	4
Net assets acquired (net of cash acquired)	(28)	(14)
Other, net	(37)	0
Net cash used in investing activities exclusive of vehicle programs	(174)	(96)
Vehicle programs:
Investment in vehicles	(8,359)	(8,116)
Proceeds received on disposition of vehicles	4,807	5,059
Repayments of Related Party Debt	(22)	(33)
Net cash used in investing activities of vehicle programs	3,574	3,090
Net cash used in investing activities	(3,748)	(3,186)
Financing activities
Proceeds from long-term borrowings	81	589
Payments on long-term borrowings	(94)	(591)
Proceeds from (Repayments of) Short-term Debt	(2)	(1)
Repurchases of common stock	(78)	(109)
Debt financing fees	(9)	(8)
Other, net	2	0
Net cash used in financing activities exclusive of vehicle programs	(100)	(120)
Vehicle programs:
Proceeds from borrowings	10,145	11,255
Payments on borrowings	(7,643)	(8,988)
Debt financing fees	(13)	(8)
Net cash provided by financing activities of vehicle programs	2,489	2,259
Net cash provided by financing activities	2,389	2,139
Effect of changes in exchange rates on cash and cash equivalents, program and restricted cash	(2)	36
Net (decrease) increase in cash and cash equivalents, program and restricted cash	(240)	128
Cash and cash equivalents, program and restricted cash, beginning of period	901	720
Cash and cash equivalents, program and restricted cash, end of period	$ 661	$ 848

XML

Basis of Presentation and Recently Issued Accounting Pronouncements

6 Months Ended

Jun. 30, 2018

Basis Of Presentation And Recently Issued Accounting Pronouncements [Abstract]

Basis of Presentation

Basis of Presentation

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

The Company operates the following reportable business segments:

• Americas—consisting primarily of (i) vehicle rental operations in North America, South America, Central America and the Caribbean, (ii) car sharing operations in certain of these markets, and (iii) licensees in the areas in which the Company does not operate directly.

• International—consisting primarily of (i) vehicle rental operations in Europe, the Middle East, Africa, Asia and Australasia, (ii) car sharing operations in certain of these markets, and (iii) licensees in the areas in which the Company does not operate directly.

The operating results of acquired businesses are included in the accompanying Consolidated Condensed Financial Statements from the dates of acquisition. The fair value of the assets acquired and liabilities assumed in connection with the Company’s fourth quarter 2017 acquisitions of ACL Hire Limited and various licensees in Europe and North America have not yet been finalized; however, there have been no significant changes to the preliminary allocation of the purchase price during the six months ended June 30, 2018.

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 2017 Form 10-K.

Summary of Significant Accounting Policies

The Company’s significant accounting policies are fully described in Note 2, “Summary of Significant Accounting Policies,” in the Company’s Annual Report on Form 10-K for fiscal year 2017.

Reclassifications. Certain reclassifications have been made to prior years’ Consolidated Condensed Financial Statements to conform to the current year presentation. These reclassifications have no impact on reported net income (loss) (see “Adoption of New Accounting Pronouncements” below).

As of December 31, 2017, the Company elected to adopt the provisions of ASU 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash,” early on a retrospective basis. ASU 2016-18 clarifies guidance on the classification and presentation of restricted cash in the statement of cash flows. The following table provides the impact of adoption on the Company’s Consolidated Condensed Statements of Cash Flows for the six months ended June 30, 2017.

	Six Months Ended June 30, 2017
	As Previously Reported			Effect of Change			As Adjusted
Decrease in program cash	$	168		$	(168	)	$	—
Other, net	(1		)	1			—
Net cash used in investing activities	(3,019		)	(167		)	(3,186		)
Effect of changes in exchange rates on cash and cash equivalents, program and restricted cash	27			9			36
Net increase in cash and cash equivalents, program and restricted cash	286			(158		)	128
Cash and cash equivalents, program and restricted cash, beginning of period	490			230			720
Cash and cash equivalents, program and restricted cash, end of period	$	776		$	72		$	848

Restricted Cash. Program cash primarily represents amounts specifically designated to purchase assets under vehicle programs and/or to repay the related debt, as such the Company considers it a restricted cash equivalent. The following table provides a reconciliation of cash and cash equivalents, program and restricted cash reported within the Consolidated Condensed Balance Sheets to the amounts shown in the Consolidated Condensed Statements of Cash Flows.

	As of June 30,
	2018		2017
Cash and cash equivalents	$	489	$	776
Program cash	161		65
Restricted cash (a)	11		7
Total cash and cash equivalents, program and restricted cash	$	661	$	848

________

^(a)  Included within other current assets.

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

Transaction-related costs, net. Transaction-related costs, net are classified separately in the Consolidated Condensed Statements of Comprehensive Income. These costs are comprised of expenses related to acquisition-related activities such as due diligence and other advisory costs, expenses related to the integration of the acquiree’s operations with those of the Company, including the implementation of best practices and process improvements, non-cash gains and losses related to re-acquired rights, expenses related to pre-acquisition contingencies and contingent consideration related to acquisitions.

Currency Transactions. The Company records the gain or loss on foreign-currency transactions on certain intercompany loans and the gain or loss on intercompany loan hedges within interest expense related to corporate debt, net. During the three and six months ended June 30, 2018 and 2017, the Company recorded an immaterial amount in each period.

Adoption of New Accounting Pronouncements

Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income

On January 1, 2018, as a result of a new accounting pronouncement, the Company early adopted ASU 2018-02, “Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income,” which allows a reclassification from accumulated other comprehensive income to retained earnings for the adjustment of deferred taxes due to the reduction of the corporate income tax rate as a result of U.S. tax reform. Accordingly, the Company has reclassified $4 million of net tax benefits from accumulated other comprehensive loss to beginning accumulated deficit related to the following (see Note 14 - Stockholders’ Equity). Prior period amounts have not been retrospectively adjusted.

Currency Translation Adjustments		Net Unrealized Gains (Losses) on Cash Flow Hedges		Net Unrealized Gains (Losses) on Available-for Sale Securities		Minimum Pension Liability Adjustment			Accumulated Other Comprehensive Income (Loss)
$	7	$	1	$	—	$	(12	)	$	(4	)

Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost

On January 1, 2018, as a result of a new accounting pronouncement, the Company adopted ASU 2017-07, “Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Costs and Net Periodic Postretirement Benefit Cost,” which requires an entity to disaggregate the components of net benefit cost recognized in its consolidated statements of operations. The adoption of this accounting pronouncement did not have a material impact on the Company’s Consolidated Condensed Financial Statements.

Recognition and Measurement of Financial Assets and Financial Liabilities

On January 1, 2018, as a result of a new accounting pronouncement, the Company adopted ASU 2016-01, “Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities,” which makes limited amendments to the classification and measurement of financial instruments. The amendments supersede the guidance to classify equity securities with readily determinable fair values into different categories (trading or available-for-sale) and require equity securities (including other ownership interests, such as partnerships, unincorporated joint ventures, and limited liability companies) to be measured at fair value with changes in the fair value recognized through net income. Accordingly, the Company has reclassified $2 million of net unrealized gains associated with available for sale equity securities from accumulated other comprehensive loss to beginning accumulated deficit (see Note 14 - Stockholders’ Equity). This ASU has no impact on the Company’s accounting for equity method investments.

Intra-Entity Transfers of Assets Other Than Inventory

On January 1, 2018, as a result of a new accounting pronouncement, the Company adopted ASU 2016-16, “Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory,” which removes the prohibition in Topic 740 against the immediate recognition of the current and deferred income tax effects of intra-entity transfers of assets other than inventory. The adoption of this accounting pronouncement did not have an impact on the Company’s Consolidated Condensed Financial Statements.

Revenue from Contracts with Customers

On January 1, 2018, as a result of a new accounting pronouncement, the Company adopted ASU 2014-09, “Revenue from Contracts with Customers (Topic 606),” which outlines a single model for entities to use in accounting for revenue arising from contracts with customers and supersedes current revenue recognition guidance. The new guidance applies to all contracts with customers except for leases, insurance contracts, financial instruments, certain nonmonetary exchanges and certain guarantees. Also, additional disclosures are required about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments. The Company has adopted the requirements of the new standard on a modified retrospective basis applied to all contracts. Prior periods have not been retrospectively adjusted. As discussed in Leases below, the Company’s rental related revenues will be accounted for under Topic 606 until the adoption of ASU 2016-02, “Leases (Topic 842)” on January 1, 2019. Under Topic 606, each transaction that generates customer loyalty points results in the deferral of revenue generally equivalent to the estimated retail value of points expected to be redeemed. The associated revenue will be recognized at the time the customer redeems the loyalty points. Previously, the Company did not defer revenue and recorded an expense associated with the incremental cost of providing the future rental at the time when the loyalty points were earned. In the Company’s Consolidated Condensed Balance Sheet at January 1, 2018, customer loyalty program liability increased approximately $50 million related to the estimated retail value of customer loyalty points earned, with a corresponding increase to accumulated deficit (approximately $40 million, net of tax) due to the cumulative impact of adopting Topic 606. Certain customers may receive cash-based rebates, which are accounted for as variable consideration under Topic 606. The Company estimates these rebates based on the expected amount to be provided to customers and reduces revenue recognized.

The impact of adoption of Topic 606 on the Company’s Consolidated Condensed Statement of Comprehensive Income for the three months ended June 30, 2018 was not material. The impact of adoption of Topic 606 on the Company’s Consolidated Condensed Statement of Comprehensive Income for the six months ended June 30, 2018 and Consolidated Condensed June 30, 2018 Balance Sheet was as follows:

	Six Months Ended June 30, 2018
	As Reported			Balances without Adoption of Topic 606			Effect of Change
Consolidated Condensed Statement of Comprehensive Income
Revenues	$	4,296		$	4,303		$	(7	)
Expenses
Operating	2,267			2,268			(1		)
Total expenses	4,387			4,388			(1		)
Loss before income taxes	(91		)	(85		)	(6		)
Benefit from income taxes	(30		)	(28		)	(2		)
Net loss	$	(61	)	$	(57	)	$	(4	)
Comprehensive loss	$	(103	)	$	(99	)	$	(4	)
	June 30, 2018
	As Reported			Balances without Adoption of Topic 606			Effect of Change
Consolidated Condensed Balance Sheet
Deferred income taxes	$	1,120		$	1,108		$	12
Total assets exclusive of assets under vehicle programs	6,193			6,181			12
Total assets	20,919			20,907			12
Accounts payable and other current liabilities	1,832			1,826			6
Total current liabilities	1,856			1,850			6
Other non-current liabilities	745			695			50
Total liabilities exclusive of liabilities under vehicle programs	6,145			6,095			50
Accumulated deficit	(1,316		)	(1,272		)	(44		)
Total stockholders’ equity	$	372		$	416		$	(44	)

Recently Issued Accounting Pronouncements

Nonemployee Share-Based Payment Accounting

In June 2018, the Financial Accounting Standards Board (“FASB”) issued ASU 2018-07, “Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting,” which simplifies the accounting for share-based payments granted to nonemployees for goods and services and aligns most of the guidance on such payments to nonemployees with the requirements for share-based payments granted to employees. ASU 2018-07 becomes effective for the Company on January 1, 2019. Early adoption is permitted. The adoption of this accounting pronouncement is not expected to have an impact on the Company's Consolidated Condensed Financial Statements.

Accounting for Hedging Activities

In August 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities,” which amends the existing guidance to allow companies to more accurately present the economic results of an entity’s risk management activities in the financial statements. ASU 2017-12 becomes effective for the Company on January 1, 2019. Early adoption is permitted. The Company is currently evaluating the effect of this accounting pronouncement on its Consolidated Condensed Financial Statements.

Measurement of Credit Losses on Financial Instruments

In June 2016, the FASB issued ASU 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which sets forth a current expected credit loss impairment model for financial assets that replaces the current incurred loss model. This model requires a financial asset (or group of financial assets), including trade receivables, measured at amortized cost to be presented at the net amount expected to be collected with an allowance for credit losses deducted from the amortized cost basis. The allowance for credit losses should reflect management’s current estimate of credit losses that are expected to occur over the remaining life of a financial asset. ASU 2016-13 becomes effective for the Company on January 1, 2020. Early adoption is permitted as of January 1, 2019. The adoption of this accounting pronouncement is not expected to have a material impact on the Company's Consolidated Condensed Financial Statements.

Leases

In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842),” which requires a lessee to recognize all long-term leases on its balance sheet as a liability for its lease obligation, measured at the present value of lease payments not yet paid, and a corresponding asset representing its right to use the underlying asset over the lease term and expands disclosure of key information about leasing arrangements. The ASU does not significantly change a lessee’s recognition, measurement and presentation of expenses and cash flows. Additionally, ASU 2016-02 aligns key aspects of lessor accounting with the new revenue recognition guidance in Topic 606 (see Revenue from Contracts with Customers above). In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach which includes a number of optional practical expedients that entities may elect to apply. In July 2018, the FASB issued ASU 2018-11, “Leases (Topic 842): Targeted Improvements,” which provides an additional transition method allowing entities to only apply the new lease standard in the year of adoption. Additionally, ASU 2018-11 provides a practical expedient for lessors to combine nonlease components with related lease components if certain conditions are met. These ASUs become effective for the Company on January 1, 2019. Early adoption is permitted.

The Company is in the process of evaluating and planning for the implementation of these ASUs, including assessing its overall impact, and expects most of its operating lease commitments will be subject to the new standard and recognized as operating lease liabilities and right-of-use assets upon adoption, which will materially increase total assets and total liabilities relative to such amounts prior to adoption. The Company has determined portions of its vehicle rental contracts that convey the right to control the use of identified assets are within the scope of the accounting guidance contained in these ASUs. As discussed in Revenue from Contracts with Customers above, the Company’s rental related revenues are accounted for under the revenue accounting standard Topic 606, until the adoption of this lease accounting standard Topic 842 on January 1, 2019.

Income Taxes

In January 2018, the FASB issued FASB Staff Question and Answer Topic 740, No. 5: Accounting for Global Intangible Low-Taxed Income (“GILTI”), which provides guidance on accounting for the GILTI provisions of the U.S. enacted tax reform legislation (“the Tax Act”). The GILTI provisions impose a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations. The guidance allows accounting for tax on GILTI to be treated as a deferred tax item or as a component of current period income tax expense in the year incurred, subject to an accounting policy election. The Company will complete its analysis in a subsequent period not to exceed one year from the date of the enactment of the Tax Act and will elect an accounting policy at such time.

XML

Revenues

6 Months Ended

Jun. 30, 2018

Revenues [Abstract]

Revenues [Text Block]

Revenues

The following table presents the Company’s revenues disaggregated by geography.

	Three Months Ended June 30, 2018		Six Months Ended June 30, 2018
Americas	$	1,590	$	2,938
Europe, Middle East and Africa	600		1,047
Asia and Australasia	138		311
Total revenues	$	2,328	$	4,296

The following table presents the Company’s revenues disaggregated by brand.

	Three Months Ended June 30, 2018		Six Months Ended June 30, 2018
Avis	$	1,351	$	2,496
Budget	777		1,419
Other	200		381
Total revenues	$	2,328	$	4,296

________

Other includes Zipcar, Payless, Apex, Maggiore and FranceCars.

The Company derives revenues primarily by providing vehicle rentals and other related products and mobility services to commercial and leisure customers, as well as through licensing of its rental systems. Other related products and mobility services include sales of collision and loss damage waivers under which a customer is relieved from financial responsibility arising from vehicle damage incurred during the rental; products and services for driving convenience such as fuel service options, chauffeur drive services, roadside safety net, electronic toll collection, tablet rentals, access to satellite radio, portable navigation units and child safety seat rentals; and rentals of other supplemental items including automobile towing equipment and other moving accessories and supplies. The Company also receives payment from customers for certain operating expenses that it incurs, including airport concession fees that are paid by the Company in exchange for the right to operate at airports and other locations, as well as vehicle licensing fees. In addition, the Company collects membership fees in connection with its car sharing business.

Revenue is recognized when obligations under the terms of a contract with the customer are satisfied; generally this occurs evenly over the contract (over time); when control of the promised products or services is transferred to the customer. Revenue is measured as the amount of consideration the Company expects to be entitled to receive in exchange for transferring products or services. Certain customers may receive cash-based rebates, which are accounted for as variable consideration. The Company estimates these rebates based on the expected amount to be provided to customers and reduces revenue recognized. Vehicle rental and rental-related revenues are recognized evenly over the period of rental. Licensing revenues principally consist of royalties paid by the Company’s licensees and are recorded as the licensees’ revenues are earned (over the rental period). The Company renews license agreements in the normal course of business and occasionally terminates, purchases or sells license agreements. In connection with ongoing fees that the Company receives from its licensees pursuant to license agreements, the Company is required to provide certain services, such as training, marketing and the operation of reservation systems. Revenues and expenses associated with gasoline, airport concessions and vehicle licensing are recorded on a gross basis within revenues and operating expenses. Membership fees related to the Company’s car sharing business are generally nonrefundable, are deferred and recognized ratably over the period of membership.

Contract Liabilities

The Company records deferred revenues when cash payments are received in advance of satisfying its performance obligations, including amounts that are refundable. In addition, certain customers earn loyalty points on rentals, for which the Company defers a portion of its rental revenues generally equivalent to the estimated retail value of points expected to be redeemed. The Company estimates points that will never be redeemed based upon actual redemption and expiration patterns. Currently loyalty points expire at the earlier of 12 months of member inactivity or five years from when they were earned. Future changes to expiration assumptions or expiration policy, or to program rules, may result in changes to deferred revenue as well as recognized revenues from the program.

The following table presents changes in the Company’s contract liabilities during the six months ended June 30, 2018.

	Balance at January 1, 2018		Revenue deferred		Revenue recognized		Balance at June 30, 2018
Prepaid rentals(a)	$	101	$	891	$	782	$	210
Other deferred revenue(b)	93		108		108		93
Total deferred revenue	$	194	$	999	$	890	$	303

________

^(a)  At June 30, 2018, included in accounts payable and other current liabilities.

^(b)  At June 30, 2018, $37 million included in accounts payable and other current liabilities and $56 million in other non-current liabilities. Non-current amounts are expected to be recognized as revenue within two to three years.

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Restructuring

6 Months Ended

Jun. 30, 2018

Restructuring and Related Activities [Abstract]

Restructuring Activities

Restructuring and Other Related Charges

Restructuring

During first quarter 2018, the Company initiated a strategic restructuring plan to improve processes and reduce headcount in response to its new workforce planning technology that allows more effective management of staff levels (“Workforce planning”). During the six months ended June 30, 2018, as part of this process, the Company formally communicated the termination of employment to 91 employees, and as of June 30, 2018, the Company had terminated the employment of 87 of these employees. The costs associated with this initiative primarily represent severance, outplacement services and other costs associated with employee terminations, the majority of which have been or are expected to be settled in cash. The Company expects further restructuring expense of approximately $11 million related to this initiative to be incurred in 2018.

During fourth quarter 2017, the Company initiated a strategic restructuring initiative to better position its truck rental operations in the U.S., in which it closed certain rental locations and reduced the size of the older rental fleet, with the intent to increase fleet utilization and reduce vehicle and overhead costs (“Truck initiative”). The Company expects further restructuring expense of approximately $1 million related to this initiative to be incurred in 2018.

During first quarter 2017, the Company initiated a strategic restructuring initiative to drive operational efficiency throughout the organization by reducing headcount, improving processes and consolidating functions, closing certain rental locations and decreasing the size of its fleet (“T17”). As of June 30, 2018, the Company had terminated the employment of 673 employees related to this initiative. The costs associated with this initiative primarily represent severance, outplacement services and other costs associated with employee terminations, the majority of which have been or are expected to be settled in cash. This initiative is substantially complete.

The following tables summarize the changes to our restructuring-related liabilities and identify the amounts recorded within the Company’s reporting segments for restructuring charges and corresponding payments and utilizations:

		Americas			International			Total
Balance as of January 1, 2018		$	1		$	3		$	4
	Restructuring expense:
	Workforce planning	2			5			7
	Truck initiative	2			—			2
	Restructuring payment/utilization:
	Workforce planning	(2		)	(4		)	(6		)
	Truck initiative	(2		)	—			(2		)
	T17	(1		)	(2		)	(3		)
Balance as of June 30, 2018		$	—		$	2		$	2
		Personnel Related			Other (a)			Total
Balance as of January 1, 2018		$	4		$	—		$	4
	Restructuring expense:
	Workforce planning	6			1			7
	Truck initiative	—			2			2
	Restructuring payment/utilization:
	Workforce planning	(5		)	(1		)	(6		)
	Truck initiative	—			(2		)	(2		)
	T17	(3		)	—			(3		)
Balance as of June 30, 2018		$	2		$	—		$	2

__________

^(a)  Includes expenses primarily related to the disposition of vehicles.

Other Related Charges

Officer Separation Costs

On May 12, 2017, the Company announced the resignation of David B. Wyshner as the Company’s President and Chief Financial Officer. In connection with Mr. Wyshner’s departure, the Company recorded other related charges of $7 million during the three and six months ended June 30, 2017, inclusive of accelerated stock-based compensation expense of $2 million.

Limited Voluntary Opportunity Plans (“LVOP”)

During 2017, the Company offered voluntary termination programs to certain employees in the Americas’ field operations, shared services, and general and administrative functions for a limited time. These employees, if qualified, elected resignation from employment in return for enhanced severance benefits to be settled in cash. During the three and six months ended June 30, 2017, the Company recorded other related charges of $14 million. As of June 30, 2018, 358 qualified employees elected to participate in the plans and the employment of all participants had been terminated.

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Earnings Per Share

6 Months Ended

Jun. 30, 2018

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   June 30,				Six Months Ended   June 30,
		2018		2017		2018			2017
Net income (loss) for basic and diluted EPS		$	26	$	3	$	(61	)	$	(104	)
Basic weighted average shares outstanding		80.7		84.0		80.8			84.9
Options and non-vested stock (a)		0.8		1.2		—			—
Diluted weighted average shares outstanding		81.5		85.2		80.8			84.9
Earnings (loss) per share:
	Basic	$	0.33	$	0.04	$	(0.75	)	$	(1.22	)
	Diluted	$	0.32	$	0.04	$	(0.75	)	$	(1.22	)

__________

^(a)  For the three months ended June 30, 2018 and 2017, 0.2 million and 0.7 million non-vested stock awards, respectively, have an anti-dilutive effect and therefore are excluded from the computation of diluted weighted average shares outstanding. As the Company incurred a net loss for the six months ended June 30, 2018 and 2017, 0.1 million and 0.8 million outstanding options, respectively, and 1.5 million and 1.3 million non-vested stock awards, respectively, have an anti-dilutive effect and therefore are excluded from the computation of diluted weighted average shares outstanding.

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Other Investments

6 Months Ended

Jun. 30, 2018

Other Investments [Abstract]

Other Investments [Text Block]

Other Investments

In March 2018, the Company made an initial equity investment of €15 million ($19 million) in its licensee in Greece (“Greece”), for a 20% ownership stake. In connection with this investment, the Company entered into an agreement to purchase an additional 20% equity interest, 10% in March 2019 and 10% in March 2020, for €15 million. In June 2018, the Company completed its purchase of the additional 20% equity investment for €16 million ($18 million), including an acceleration premium, and as of June 30, 2018, had a 40% ownership stake in Greece. The Company’s equity investment is recorded within other non-current assets. The Company’s share of Greece’s results are reported within operating expenses and are not material for the three and six months ended June 30, 2018.

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Other Current Assets

6 Months Ended

Jun. 30, 2018

Other Current Assets Disclosure [Abstract]

Other Current Assets [Text Block]

Other Current Assets

Other current assets consisted of:

	As of June 30, 2018		As of December 31, 2017
Sales and use taxes	$	402	$	174
Prepaid expenses	252		196
Other	178		163
Other current assets	$	832	$	533

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Intangible Assets

6 Months Ended

Jun. 30, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

Intangible Assets

Intangible assets consisted of:

	As of June 30, 2018						As of December 31, 2017
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Amortized Intangible Assets
License agreements	$	310	$	154	$	156	$	281	$	140	$	141
Customer relationships	238		130		108		242		119		123
Other	49		19		30		51		18		33
Total	$	597	$	303	$	294	$	574	$	277	$	297
Unamortized Intangible Assets
Goodwill (a)	$	1,049					$	1,073
Trademarks	$	549					$	553

_________

^(a)  The change in the carrying amount since December 31, 2017, primarily reflects currency translation.

For the three months ended June 30, 2018 and 2017, amortization expense related to amortizable intangible assets was approximately $19 million and $16 million, respectively. For the six months ended June 30, 2018 and 2017, amortization expense related to amortizable intangible assets was approximately $33 million and $31 million, respectively. Based on the Company’s amortizable intangible assets at June 30, 2018, the Company expects amortization expense of approximately $37 million for the remainder of 2018, $50 million for 2019, $43 million for 2020, $30 million for 2021, $24 million for 2022 and $21 million for 2023, excluding effects of currency exchange rates.

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Vehicle Rental Activities

6 Months Ended

Jun. 30, 2018

Vehicle Rental Activities [Abstract]

Vehicle Rental Activities

Vehicle Rental Activities

The components of vehicles, net within assets under vehicle programs were as follows:

	As of			As of
	June 30,			December 31,
	2018			2017
Rental vehicles	$	15,188		$	11,652
Less: Accumulated depreciation	(1,629		)	(1,652		)
	13,559			10,000
Vehicles held for sale	308			626
Vehicles, net	$	13,867		$	10,626

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

	Three Months Ended   June 30,					Six Months Ended   June 30,
	2018			2017		2018			2017
Depreciation expense	$	536		$	516	$	996		$	953
Lease charges	64			54		120			97
(Gain) loss on sale of vehicles, net	(9		)	27		(10		)	51
Vehicle depreciation and lease charges, net	$	591		$	597	$	1,106		$	1,101

At June 30, 2018 and 2017, the Company had payables related to vehicle purchases included in liabilities under vehicle programs - other of $856 million and $658 million, respectively, and receivables related to vehicle sales included in assets under vehicle programs - receivables from vehicle manufacturers and other of $248 million and $235 million, respectively.

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Income Taxes

6 Months Ended

Jun. 30, 2018

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

Income Taxes

The Company’s effective tax rate for the six months ended June 30, 2018 is a benefit of 33.0%. Such rate differed from the Federal statutory rate of 21.0% primarily due to U.S. and foreign taxes on our international operations and state taxes. Tax benefits associated with stock-based compensation increased the benefit for income taxes recorded in the current period.

The Company’s effective tax rate for the six months ended June 30, 2017 was a benefit of 32.5%. Such rate differed from the Federal statutory rate of 35.0% primarily due to foreign taxes as a result of the mix of the Company’s earnings between the U.S. and foreign jurisdictions.

The Company has not finalized the accounting for the effects of the Tax Act due to the complex analysis necessary to determine the historical earnings of foreign subsidiaries, the ability to utilize tax attributes such as foreign tax credits, and the impact of the repeal of the like-kind exchange provision for personal property together with the corresponding impact on deferred tax components and valuation allowances. Therefore, during the six months ended June 30, 2018, the Company has not recorded any adjustments to the provisional amounts recorded in 2017. Any adjustments to the provisional amounts recorded in 2017 will be recorded when the Company finalizes its accounting of the tax effects within a subsequent measurement period that will not exceed one year from the date of the enactment of the Tax Act.

The Company continues to evaluate whether or not to continue to assert indefinite reinvestment on a part or all of its undistributed foreign earnings. This requires the Company to analyze its global working capital and cash requirements in light of the Tax Act and the potential tax liabilities attributable to a repatriation to the U.S., such as foreign withholding taxes and U.S. tax on currency transaction gains or losses. The Company did not record any deferred taxes attributable to its investments in its foreign subsidiaries. The Company will record the tax effects of any change in its assertion within a subsequent measurement period that will not exceed one year from the date of the enactment of the Tax Act.

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Accounts Payable and Other Current Liabilities

6 Months Ended

Jun. 30, 2018

Accounts Payable and Other Current Liabilities [Abstract]

Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure, Current [Text Block]

Accounts Payable and Other Current Liabilities

Accounts payable and other current liabilities consisted of:

	As of		As of
	June 30,		December 31,
	2018		2017
Accounts payable	$	412	$	359
Accrued sales and use taxes	262		218
Deferred revenue – current	247		135
Accrued advertising and marketing	197		190
Accrued payroll and related	176		176
Public liability and property damage insurance liabilities – current	144		145
Accrued insurance	102		103
Other	292		293
Accounts payable and other current liabilities	$	1,832	$	1,619

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Long-term Debt and Borrowing Arrangements

6 Months Ended

Jun. 30, 2018

Debt Disclosure [Abstract]

Long-term Debt and Borrowing Arrangements

Long-term Corporate Debt and Borrowing Arrangements

Long-term corporate debt and borrowing arrangements consisted of:

		As of			As of
	Maturity Dates	June 30,			December 31,
		2018			2017
Floating Rate Term Loan	March 2022	$	—		$	1,136
5⅛% Senior Notes	June 2022	400			400
5½% Senior Notes	April 2023	675			675
6⅜% Senior Notes	April 2024	350			350
4⅛% euro-denominated Senior Notes	November 2024	351			360
Floating Rate Term Loan (a)	February 2025	1,128			—
5¼% Senior Notes	March 2025	375			375
4½% euro-denominated Senior Notes	May 2025	292			300
Other (b)		43			49
Deferred financing fees		(46		)	(46		)
Total		3,568			3,599
Less: Short-term debt and current portion of long-term debt		24			26
Long-term debt		$	3,544		$	3,573

__________

^(a)  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 June 30, 2018, the floating rate term loan due 2025 bears interest at three-month LIBOR plus 200 basis points, for an aggregate rate of 4.34%. The Company has entered into a swap to hedge $700 million of its interest rate exposure related to the floating rate term loan at an aggregate rate of 3.79%.

^(b)  Primarily includes capital leases which are secured by liens on the related assets.

In February 2018, the Company amended the terms of its Floating Rate Term Loan due 2022 and extended its maturity term to 2025.

Committed Credit Facilities and Available Funding Arrangements

At June 30, 2018, the committed corporate credit facilities available to the Company and/or its subsidiaries were as follows:

	Total Capacity		Outstanding Borrowings		Letters of Credit Issued		Available Capacity
Senior revolving credit facility maturing 2023 (a)	$	1,800	$	—	$	1,324	$	476
Other facilities(b)	2		2		—		—

__________

^(a)  The senior revolving credit facility bears interest at one-month LIBOR plus 200 basis points and is part of the Company’s senior credit facility, which is secured by pledges of capital stock of certain subsidiaries of the Company, and liens on substantially all of the Company’s intellectual property and certain other real and personal property.

^(b)  These facilities encompass bank overdraft lines of credit, bearing interest of 3.22% as of June 30, 2018.

In February 2018, the Company amended the terms of its Senior revolving credit facility maturing 2021 and extended its maturity to 2023.

At June 30, 2018, the Company had various uncommitted credit facilities available, under which it had drawn approximately $1 million, which bear interest at rates between 0.74% and 1.54%.

Debt Covenants

The agreements governing the Company’s corporate 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. As of June 30, 2018, the Company was in compliance with the financial covenants governing its indebtedness.

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Debt Under Vehicle Programs and Borrowing Arrangements

6 Months Ended

Jun. 30, 2018

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
	June 30,			December 31,
	2018			2017
Americas - Debt due to Avis Budget Rental Car Funding (a)	$	8,298		$	6,516
Americas - Debt borrowings	912			660
International - Debt borrowings	2,399			1,942
International - Capital leases	211			146
Other	4			1
Deferred financing fees (b)	(48		)	(44		)
Total	$	11,776		$	9,221

__________

^(a)  The increase reflects additional borrowings principally to fund increases in the Company’s car rental fleet.

^(b)  Deferred financing fees related to Debt due to Avis Budget Rental Car Funding as of June 30, 2018 and December 31, 2017 were $33 million and $36 million, respectively.

In April 2018, the Company’s Avis Budget Rental Car Funding subsidiary issued approximately $400 million in asset-backed notes with an expected final payment date of September 2023. The weighted average interest rate was 4%. The Company used the proceeds from these borrowings to fund the repayment of maturing vehicle-backed debt and the acquisition of rental cars in the United States.

In June 2018, the Company increased its capacity under the European rental fleet securitization program by €150 million (approximately $175 million) to €1.8 billion (approximately $2.1 billion) and extended its maturity to 2021. The Company used the proceeds to finance fleet purchases for certain of the Company’s European operations.

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 June 30, 2018.

	Debt under Vehicle Programs
Within 1 year	$	1,816
Between 1 and 2 years	4,703
Between 2 and 3 years	2,997
Between 3 and 4 years	724
Between 4 and 5 years	1,156
Thereafter	428
Total	$	11,824

Committed Credit Facilities and Available Funding Arrangements

As of June 30, 2018, available funding under the Company’s vehicle programs, including related party debt due to Avis Budget Rental Car Funding, consisted of:

	Total Capacity (a)		Outstanding Borrowings(b)		Available Capacity
Americas - Debt due to Avis Budget Rental Car Funding	$	8,988	$	8,298	$	690
Americas - Debt borrowings	971		912		59
International - Debt borrowings	3,081		2,399		682
International - Capital leases	231		211		20
Other	4		4		—
Total	$	13,275	$	11,824	$	1,451

__________

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

^(b)  The outstanding debt is collateralized by vehicles and related assets of $9.8 billion for Americas - Debt due to Avis Budget Rental Car Funding; $1.3 billion for Americas - Debt borrowings; $2.6 billion for International - Debt borrowings; and $0.2 billion for International - Capital leases.

Debt Covenants

The agreements under the Company’s vehicle-backed funding programs contain restrictive covenants, including restrictions on dividends paid to the Company by certain of its subsidiaries and restrictions on indebtedness, mergers, liens, liquidations, and sale and leaseback transactions and in some cases also require compliance with certain financial requirements. As of June 30, 2018, the Company is not aware of any instances of non-compliance with any of the financial covenants contained in the debt agreements under its vehicle-backed funding programs.

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2018

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Contingencies

In 2006, the Company completed the spin-offs of its Realogy and Wyndham subsidiaries. The Company does not believe that the impact of any resolution of pre-existing contingent liabilities in connection with the spin-offs should result in a material liability to the Company in relation to its consolidated financial position or liquidity, as Realogy and Wyndham each have agreed to assume responsibility for these liabilities. The Company is also named in litigation that is primarily related to the businesses of its former subsidiaries, including Realogy and Wyndham. The Company is entitled to indemnification from such entities for any liability resulting from such litigation.

In February 2017, following a state court trial in Georgia, a jury found the Company liable for damages in a case brought by a plaintiff who was injured in a vehicle accident allegedly caused by an employee of an independent contractor of the Company who was acting outside of the scope of employment. In March 2017, the Company was also found liable for damages in a companion case arising from the same incident. The Company considers the attribution of liability to the Company, and the amount of damages awarded, to be unsupported by the facts of these cases and intends to appeal the verdicts. The Company has recognized a liability for the expected loss related to these cases, net of recoverable insurance proceeds, of approximately $12 million.

The Company is involved in claims, legal proceedings and governmental inquiries that are incidental to its vehicle rental and car sharing operations, including, among others, contract and licensee disputes, competition matters, employment and wage-and-hour claims, insurance and liability claims, intellectual property claims, business practice disputes and other regulatory, environmental, commercial and tax matters. Litigation is inherently unpredictable and, although the Company believes that its accruals are adequate and/or that it has valid defenses in these matters, unfavorable resolutions could occur. The Company estimates that the potential exposure resulting from adverse outcomes of legal proceedings in which it is reasonably possible that a loss may be incurred could, in the aggregate, be up to approximately $50 million in excess of amounts accrued as of June 30, 2018. The Company does not believe that the impact should result in a material liability to the Company in relation to its consolidated financial condition or results of operations.

Commitments to Purchase Vehicles

The Company maintains agreements with vehicle manufacturers under which the Company has agreed to purchase approximately $2.8 billion of vehicles from manufacturers over the next 12 months financed primarily through the issuance of vehicle-backed debt and cash received upon the disposition of vehicles. Certain of these commitments are subject to the vehicle manufacturers’ satisfying their obligations under their respective repurchase and guaranteed depreciation agreements.

Concentrations

Concentrations of credit risk at June 30, 2018 include (i) risks related to the Company’s repurchase and guaranteed depreciation agreements with domestic and foreign car manufacturers, primarily with respect to receivables for program cars that have been disposed but for which the Company has not yet received payment from the manufacturers and (ii) risks related to Realogy and Wyndham, including receivables of $23 million and $14 million, respectively, related to certain contingent, income tax and other corporate liabilities assumed by Realogy and Wyndham in connection with their disposition.

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Stockholders' Equity

6 Months Ended

Jun. 30, 2018

Equity [Abstract]

Stockholders' Equity

Stockholders’ Equity

Stockholder Rights Plan

In January 2018, the Company’s Board of Directors authorized the adoption of a short-term stockholder rights plan. Effective April 16, 2018 the Company terminated the rights plan. Pursuant to the rights plan, the Company declared a dividend of one preferred share purchase right for each outstanding share of common stock, payable to holders of record as of the close of business on January 26, 2018. Each right, which was exercisable only in the event any person or group were to acquire beneficial ownership of 15% or more of the Company’s outstanding common stock (with certain limited exceptions), would have entitled any holder other than the person or group whose ownership position had exceeded the ownership limit to purchase common stock having a value equal to twice the $100 exercise price of the right, or, at the election of the Board of Directors, to exchange each right for one share of common stock (subject to adjustment). On April 16, 2018, the Company also entered into a new cooperation agreement with SRS Investment Management LLC and certain of its affiliates.

Share Repurchases

The Company’s Board of Directors has authorized the repurchase of up to $1.5 billion of its common stock under a plan originally approved in 2013 and subsequently expanded, most recently in 2016. During the six months ended June 30, 2018, the Company repurchased approximately 1.6 million shares of common stock at a cost of approximately $67 million under the program. During the six months ended June 30, 2017, the Company repurchased approximately 3.4 million shares of common stock at a cost of approximately $100 million under the program. As of June 30, 2018, approximately $33 million of authorization remains available to repurchase common stock under this plan. In August 2018, the Company’s Board of Directors increased the Company’s share repurchase program authorization by $250 million.

Total Comprehensive Income (Loss)

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 (loss) were as follows: 

		Three Months Ended   June 30,						Six Months Ended   June 30,
		2018			2017			2018			2017
Net income (loss)		$	26		$	3		$	(61	)	$	(104	)
Other comprehensive income (loss):
	Currency translation adjustments (net of tax of $(10), $17, $(5) and $20, respectively)	(54		)	48			(53		)	73
	Net unrealized gain (loss) on available-for-sale securities (net of tax of $0 in each period)	—			1			—			1
	Net unrealized gain (loss) on cash flow hedges (net of tax of $(1), $1, $(3) and $1, respectively)	2			(2		)	8			(1		)
	Minimum pension liability adjustment (net of tax of $0, $0, $(1) and $(1), respectively)	2			1			3			3
		(50		)	48			(42		)	76
Comprehensive income (loss)		$	(24	)	$	51		$	(103	)	$	(28	)

__________

Currency translation adjustments exclude income taxes related to indefinite investments in foreign subsidiaries (See Note 9 - Income Taxes).

Accumulated Other Comprehensive Income (Loss)

The components of accumulated other comprehensive income (loss) were as follows: 

		Currency Translation Adjustments			Net Unrealized Gains (Losses) on Cash Flow Hedges(a)			Net Unrealized Gains (Losses) on Available-for Sale Securities			Minimum Pension Liability Adjustment(b)			Accumulated Other Comprehensive Income (Loss)
Balance, December 31, 2017		$	71		$	5		$	2		$	(102	)	$	(24	)
	Cumulative effect of accounting change (c)	7			1			(2		)	(12		)	(6		)
Balance, January 1, 2018		$	78		$	6		$	—		$	(114	)	$	(30	)
	Other comprehensive income (loss) before reclassifications	(53		)	8			—			1			(44		)
	Amounts reclassified from accumulated other comprehensive income (loss)	—			—			—			2			2
Net current-period other comprehensive income (loss)		(53		)	8			—			3			(42		)
Balance, June 30, 2018		$	25		$	14		$	—		$	(111	)	$	(72	)
Balance, January 1, 2017		$	(39	)	$	2		$	1		$	(118	)	$	(154	)
	Other comprehensive income (loss) before reclassifications	73			(2		)	1			—			72
	Amounts reclassified from accumulated other comprehensive income (loss)	—			1			—			3			4
Net current-period other comprehensive income (loss)		73			(1		)	1			3			76
Balance, June 30, 2017		$	34		$	1		$	2		$	(115	)	$	(78	)

__________

All components of accumulated other comprehensive income (loss) are net of tax, except currency translation adjustments, which exclude income taxes related to indefinite investments in foreign subsidiaries and include a $53 million gain, net of tax, as of June 30, 2018 related to the Company’s hedge of its net investment in euro-denominated foreign operations (see Note 16 - Financial Instruments).

^(a)  For the three and six months ended June 30, 2017, the amount reclassified from accumulated other comprehensive income (loss) into corporate interest expense were $1 million ($0 million, net of tax) and $2 million ($1 million, net of tax), respectively.

^(b)  For the three and six months ended June 30, 2018, amounts reclassified from accumulated other comprehensive income (loss) into selling, general and administrative expenses were $2 million ($1 million, net of tax) and $4 million ($2 million, net of tax), respectively. For the three and six months ended June 30, 2017, amounts reclassified from accumulated other comprehensive income (loss) into selling, general and administrative expenses were $2 million ($2 million, net of tax) and $4 million ($3 million, net of tax), respectively.

^(c)  See Note 1 - Basis of Presentation for the impact of adoption of ASU 2016-01 and ASU 2018-02.

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Stock-Based Compensation

6 Months Ended

Jun. 30, 2018

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

Stock-Based Compensation

Stock-Based Compensation

The Company recorded stock-based compensation expense of $7 million and $4 million ($5 million and $3 million, net of tax) during the three months ended June 30, 2018 and 2017, respectively, and $12 million and $5 million ($9 million and $3 million, net of tax) during the six months ended June 30, 2018 and 2017, respectively.

The activity related to restricted stock units (“RSUs”) consisted of (in thousands of shares):

			Number of Shares		Weighted Average Grant Date Fair Value		Weighted Average Remaining Contractual Term (years)	Aggregate Intrinsic Value (in millions)
Time-based RSUs
	Outstanding at January 1, 2018		1,160		$	34.54
		Granted (a)	317		48.66
		Vested (b)	(359	)	35.14
		Forfeited	(39	)	34.98
	Outstanding and expected to vest at June 30, 2018(c)		1,079		$	38.47	1.1	$	35
Performance-based and market-based RSUs
	Outstanding at January 1, 2018		994		$	33.06
		Granted (a)	349		48.72
		Vested	—		—
		Forfeited	(145	)	53.36
	Outstanding at June 30, 2018		1,198		$	35.17	1.5	$	39
	Outstanding and expected to vest at June 30, 2018(c)		266		$	44.49	2.3	$	9

__________

^(a)  Reflects the maximum number of stock units assuming achievement of all performance-, market- and time-vesting criteria and does not include those for non-employee directors. The weighted-average fair value of time-based RSUs and performance-based RSUs granted during the six months ended June 30, 2017 was $34.41.

^(b)  The total fair value of RSUs vested during June 30, 2018 and 2017 was $13 million and $22 million, respectively.

^(c)  Aggregate unrecognized compensation expense related to time-based RSUs and performance-based RSUs amounted to $41 million and will be recognized over a weighted average vesting period of 1.3 years.

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

		Number of Options		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (years)	Aggregate Intrinsic Value (in millions)
Outstanding at January 1, 2018		273		$	7.08	1.7	$	10
	Granted	—		—
	Exercised	(186	)	9.99			7
	Forfeited/expired	—		—
Outstanding and exercisable at June 30, 2018		87		$	0.79	0.6	$	3

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Financial Instruments

6 Months Ended

Jun. 30, 2018

Investments, All Other Investments [Abstract]

Financial Instruments

Financial Instruments

Derivative Instruments and Hedging Activities

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

The amount of gains or losses reclassified from other comprehensive income (loss) to earnings resulting from ineffectiveness or from excluding a component of the hedges’ gain or loss from the effectiveness calculation for cash flow and net investment hedges during the three and six months ended June 30, 2018 and 2017 was not material, nor is the amount of gains or losses the Company expects to reclassify from accumulated other comprehensive income (loss) to earnings over the next 12 months.

Interest Rate Risk. The Company uses various hedging strategies including interest rate swaps and interest rate caps to create what it deems an appropriate mix of fixed and floating rate assets and liabilities. The Company uses interest rate swaps and interest rate caps to manage the risk related to its floating rate corporate debt and its floating rate vehicle-backed debt. The Company records the effective portion of changes in the fair value of its cash flow hedges to other comprehensive income (loss), net of tax, and subsequently reclassifies these amounts into earnings in the period during which the hedged transaction 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 Condensed Statements of Comprehensive Income. The changes in fair values of hedges that are determined to be ineffective are immediately reclassified from accumulated other comprehensive income (loss) into earnings. The amount of gains or losses reclassified from other comprehensive income (loss) to earnings resulting from ineffectiveness related to the Company’s cash flow hedges was not material during the three and six months ended June 30, 2018 and 2017. The Company estimates that $5 million of gains currently recorded in accumulated other comprehensive income (loss) will be recognized in earnings over the next 12 months.

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

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

	As of June 30, 2018
Interest rate caps (a)	$	8,934
Interest rate swaps	1,000
Foreign exchange contracts	1,276
Commodity contracts (millions of gallons of unleaded gasoline)	9

__________

^(a)  Represents $5.9 billion of interest rate caps sold, partially offset by approximately $3.0 billion of interest rate caps purchased. These amounts exclude $3.0 billion of interest rate caps purchased by the Company’s Avis Budget Rental Car Funding subsidiary as it is not consolidated by the Company.

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

		As of June 30, 2018				As of December 31, 2017
		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)	$	19	$	—	$	8	$	—
Derivatives not designated as hedging instruments
	Interest rate caps (b)	1		5		—		1
	Foreign exchange contracts (c)	14		5		3		7
	Commodity contracts (c)	1		—		—		—
	Total	$	35	$	10	$	11	$	8

__________

Amounts in this table exclude derivatives issued by Avis Budget Rental Car Funding; however, certain amounts related to the derivatives held by Avis Budget Rental Car Funding are included within accumulated other comprehensive income (loss).

^(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 were as follows:

		Three Months Ended   June 30,						Six Months Ended   June 30,
		2018			2017			2018			2017
Derivatives designated as hedging instruments (a)
	Interest rate swaps	$	2		$	(2	)	$	8		$	(1	)
	Euro-denominated notes	26			(26		)	13			(31		)
Derivatives not designated as hedging instruments (b)
	Interest rate caps (c)	(1		)	—			(1		)	—
	Foreign exchange contracts (d)	28			(21		)	19			(33		)
	Commodity contracts (e)	1			(1		)	1			(2		)
	Total	$	56		$	(50	)	$	40		$	(67	)

__________

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

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

^(c)  Included primarily in vehicle interest, net.

^(d)  For the three months ended June 30, 2018, included a $20 million gain in interest expense and a $8 million gain in operating expense and for the six months ended June 30, 2018, included a $7 million gain in interest expense and a $12 million gain in operating expense. For the three months ended June 30, 2017, included a $11 million loss in interest expense and a $10 million loss in operating expense and for the six months ended June 30, 2017, included a $18 million loss in interest expense and a $15 million loss in operating expense.

^(e)  Included in operating expense.

Debt Instruments

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

		As of June 30, 2018				As of December 31, 2017
		Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Corporate debt
	Short-term debt and current portion of long-term debt	$	24	$	24	$	26	$	26
	Long-term debt	3,544		3,539		3,573		3,677
Debt under vehicle programs
	Vehicle-backed debt due to Avis Budget Rental Car Funding	$	8,265	$	8,270	$	6,480	$	6,537
	Vehicle-backed debt	3,506		3,520		2,740		2,745
	Interest rate swaps and interest rate caps (a)	5		5		1		1

__________

^(a)  Derivatives in a liability position.

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Segment Information

6 Months Ended

Jun. 30, 2018

Segment Reporting [Abstract]

Segment Information

Segment Information

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

Management evaluates the operating results of each of its reportable segments based upon revenues and “Adjusted EBITDA,” which the Company defines as income from continuing operations before non-vehicle related depreciation and amortization, any impairment charges, restructuring and other related charges, early extinguishment of debt costs, non-vehicle related interest, transaction-related costs, net charges for unprecedented personal-injury legal matters, non-operational charges related to shareholder activist activity and income taxes. Net charges for unprecedented personal-injury legal matters are recorded within operating expenses in the Company’s Consolidated Condensed Statement of Comprehensive Income. The Company has revised its definition of Adjusted EBITDA to exclude non-operational charges related to shareholder activist activity. Non-operational charges related to shareholder activist activity include third party advisory, legal and other professional service fees and are recorded within selling, general and administrative expenses in the Company’s Consolidated Condensed Statement of Comprehensive Income. The Company did not revise prior years’ Adjusted EBITDA amounts because there were no costs similar in nature to these costs. The Company’s presentation of Adjusted EBITDA may not be comparable to similarly-titled measures used by other companies.

			Three Months Ended June 30,
			2018					2017
			Revenues		Adjusted EBITDA			Revenues		Adjusted EBITDA
Americas			$	1,590	$	107		$	1,565	$	96
International			738		71			673		59
Corporate and Other (a)			—		(17		)	—		(15		)
	Total Company		$	2,328	$	161		$	2,238	$	140
Reconciliation of Adjusted EBITDA to income before income taxes
					2018					2017
Adjusted EBITDA					$	161				$	140
Less:		Non-vehicle related depreciation and amortization			67					65
		Interest expense related to corporate debt, net			49					48
		Restructuring and other related charges			4					38
		Transaction-related costs, net			3					5
		Charges for legal matter, net			—					(27		)
Income before income taxes					$	38				$	11

__________

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

			Six Months Ended June 30,
			2018					2017
			Revenues		Adjusted EBITDA			Revenues		Adjusted EBITDA
Americas			$	2,938	$	122		$	2,879	$	76
International			1,358		74			1,198		66
Corporate and Other (a)			—		(33		)	—		(29		)
	Total Company		$	4,296	$	163		$	4,077	$	113
Reconciliation of Adjusted EBITDA to loss before income taxes
					2018					2017
Adjusted EBITDA					$	163				$	113
Less:		Non-vehicle related depreciation and amortization			128					128
		Interest expense related to corporate debt, net:
		Interest expense			95					97
		Early extinguishment of debt			5					3
		Restructuring and other related charges			10					45
		Non-operational charges related to shareholder activist activity			9					—
		Transaction-related costs, net			7					8
		Charges for legal matter, net			—					(14		)
Loss before income taxes					$	(91	)			$	(154	)

__________

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

Since December 31, 2017, there have been no significant changes in segment assets exclusive of assets under vehicle programs. As of June 30, 2018 and December 31, 2017, Americas assets under vehicle programs were approximately $11.0 billion and $9.0 billion, respectively, due to seasonality. As of June 30, 2018 and December 31, 2017, International assets under vehicle programs were approximately $3.7 billion and $2.9 billion, respectively, due to seasonality.

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Guarantor and Non-Guarantor Consolidating Condensed Financial Statements

6 Months Ended

Jun. 30, 2018

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed Financial Information of Parent Company Only Disclosure [Text Block]

Guarantor and Non-Guarantor Consolidating Condensed Financial Statements

The following consolidating financial information presents Consolidating Condensed Statements of Comprehensive Income for the three and six months ended June 30, 2018 and 2017, Consolidating Condensed Balance Sheets as of June 30, 2018 and December 31, 2017, and Consolidating Condensed Statements of Cash Flows for the six months ended June 30, 2018 and 2017 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 notes issued by the Subsidiary Issuers. See Note 11 - Long-term Corporate Debt and Borrowing Arrangements for additional description of these guaranteed notes. The Senior 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.

The following tables provide the impact of adoption of ASU 2016-18 on the Company’s Consolidating Condensed Statements of Cash Flows for the six months ended June 30, 2017.

	Six Months Ended June 30, 2017
	As Previously Reported Non-Guarantor			Effect of Change			As Adjusted Non-Guarantor			As Previously Reported Total			Effect of Change			As Adjusted Total
Decrease in program cash	$	168		$	(168	)	$	—		$	168		$	(168	)	$	—
Other, net	(1		)	1			—			(1		)	1			—
Net cash used in investing activities	(3,303		)	(167		)	(3,470		)	(3,019		)	(167		)	(3,186		)
Effect of changes in exchange rates on cash and cash equivalents, program and restricted cash	27			9			36			27			9			36
Net increase in cash and cash equivalents, program and restricted cash	177			(158		)	19			286			(158		)	128
Cash and cash equivalents, program and restricted cash, beginning of period	475			230			705			490			230			720
Cash and cash equivalents, program and restricted cash, end of period	$	652		$	72		$	724		$	776		$	72		$	848

The following table provides a reconciliation of the cash and cash equivalents, program and restricted cash reported within the Consolidating Condensed Balance Sheets to the amounts shown in the Consolidating Condensed Statements of Cash Flows.

	As of June 30,
	2018				2017
	Non-Guarantor		Total		Non-Guarantor		Total
Cash and cash equivalents	$	475	$	489	$	652	$	776
Program cash	161		161		65		65
Restricted cash (a)	11		11		7		7
Total cash and cash equivalents, program and restricted cash	$	647	$	661	$	724	$	848

_________

^(a)  Included within other current assets.

Consolidating Condensed Statements of Comprehensive Income

Three Months Ended June 30, 2018

			Parent			Subsidiary Issuers			Guarantor Subsidiaries			Non- Guarantor Subsidiaries		Eliminations			Total
Revenues			$	—		$	—		$	1,395		$	1,590	$	(657	)	$	2,328
Expenses
	Operating		1			(3		)	677			500		—			1,175
	Vehicle depreciation and lease charges, net		—			—			605			582		(596		)	591
	Selling, general and administrative		10			3			176			132		—			321
	Vehicle interest, net		—			—			61			80		(61		)	80
	Non-vehicle related depreciation and amortization		—			1			36			30		—			67
	Interest expense related to corporate debt, net:
		Interest expense	—			39			1			9		—			49
		Intercompany interest expense (income)	(3		)	(31		)	5			29		—			—
	Restructuring and other related charges		—			—			1			3		—			4
	Transaction-related costs, net		—			1			1			1		—			3
Total expenses			8			10			1,563			1,366		(657		)	2,290
Income (loss) before income taxes and equity in earnings of subsidiaries			(8		)	(10		)	(168		)	224		—			38
Provision for (benefit from) income taxes			(5		)	(3		)	14			6		—			12
Equity in earnings of subsidiaries			29			36			218			—		(283		)	—
Net income			$	26		$	29		$	36		$	218	$	(283	)	$	26
Comprehensive income (loss)			$	(24	)	$	(21	)	$	(16	)	$	165	$	(128	)	$	(24	)

Six Months Ended June 30, 2018

			Parent			Subsidiary Issuers			Guarantor Subsidiaries			Non- Guarantor Subsidiaries		Eliminations			Total
Revenues			$	—		$	—		$	2,579		$	2,949	$	(1,232	)	$	4,296
Expenses
	Operating		2			1			1,298			966		—			2,267
	Vehicle depreciation and lease charges, net		—			—			1,141			1,086		(1,121		)	1,106
	Selling, general and administrative		28			6			331			252		—			617
	Vehicle interest, net		—			—			113			150		(111		)	152
	Non-vehicle related depreciation and amortization		—			1			72			55		—			128
	Interest expense related to corporate debt, net:
		Interest expense	—			78			2			15		—			95
		Intercompany interest expense (income)	(6		)	(9		)	11			4		—			—
		Early extinguishment of debt	—			5			—			—		—			5
	Restructuring and other related charges		—			—			4			6		—			10
	Transaction-related costs, net		—			1			1			5		—			7
Total expenses			24			83			2,973			2,539		(1,232		)	4,387
Income (loss) before income taxes and equity in earnings of subsidiaries			(24		)	(83		)	(394		)	410		—			(91		)
Provision for (benefit from) income taxes			(11		)	(22		)	(5		)	8		—			(30		)
Equity in earnings (loss) of subsidiaries			(48		)	13			402			—		(367		)	—
Net income (loss)			$	(61	)	$	(48	)	$	13		$	402	$	(367	)	$	(61	)
Comprehensive income (loss)			$	(103	)	$	(90	)	$	(37	)	$	349	$	(222	)	$	(103	)

Three Months Ended June 30, 2017

			Parent			Subsidiary Issuers			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Total
Revenues			$	—		$	—		$	1,371		$	1,530		$	(663	)	$	2,238
Expenses
	Operating		1			9			644			454			—			1,108
	Vehicle depreciation and lease charges, net		—			—			614			592			(609		)	597
	Selling, general and administrative		10			2			158			123			—			293
	Vehicle interest, net		—			—			52			75			(54		)	73
	Non-vehicle related depreciation and amortization		—			1			40			24			—			65
	Interest expense related to corporate debt, net:
		Interest expense	—			83			—			(35		)	—			48
		Intercompany interest expense (income)	(3		)	5			5			(7		)	—			—
		Early extinguishment of debt	—			1			—			(1		)	—			—
	Restructuring and other related charges		—			2			33			3			—			38
	Transaction-related costs, net		—			—			—			5			—			5
Total expenses			8			103			1,546			1,233			(663		)	2,227
Income (loss) before income taxes and equity in earnings of subsidiaries			(8		)	(103		)	(175		)	297			—			11
Provision for (benefit from) income taxes			(2		)	(39		)	11			38			—			8
Equity in earnings of subsidiaries			9			73			259			—			(341		)	—
Net income			$	3		$	9		$	73		$	259		$	(341	)	$	3
Comprehensive income			$	51		$	58		$	123		$	309		$	(490	)	$	51

Six Months Ended June 30, 2017

			Parent			Subsidiary Issuers			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Total
Revenues			$	—		$	—		$	2,524		$	2,801		$	(1,248	)	$	4,077
Expenses
	Operating		2			13			1,284			858			—			2,157
	Vehicle depreciation and lease charges, net		—			—			1,160			1,085			(1,144		)	1,101
	Selling, general and administrative		20			4			311			220			—			555
	Vehicle interest, net		—			—			97			144			(104		)	137
	Non-vehicle related depreciation and amortization		—			1			80			47			—			128
	Interest expense related to corporate debt, net:
		Interest expense	—			129			1			(33		)	—			97
		Intercompany interest expense (income)	(6		)	6			11			(11		)	—			—
		Early extinguishment of debt	—			4			—			(1		)	—			3
	Restructuring and other related charges		—			2			39			4			—			45
	Transaction-related costs, net		—			—			—			8			—			8
Total expenses			16			159			2,983			2,321			(1,248		)	4,231
Income (loss) before income taxes and equity in earnings of subsidiaries			(16		)	(159		)	(459		)	480			—			(154		)
Provision for (benefit from) income taxes			(4		)	(62		)	(28		)	44			—			(50		)
Equity in earnings (loss) of subsidiaries			(92		)	5			436			—			(349		)	—
Net income (loss)			$	(104	)	$	(92	)	$	5		$	436		$	(349	)	$	(104	)
Comprehensive income (loss)			$	(28	)	$	(16	)	$	82		$	512		$	(578	)	$	(28	)

Consolidating Condensed Balance Sheets

As of June 30, 2018

		Parent		Subsidiary Issuers		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations			Total
Assets
Current assets:
	Cash and cash equivalents	$	3	$	11	$	—	$	475	$	—		$	489
	Receivables, net	—		—		248		654		—			902
	Other current assets	2		114		119		597		—			832
Total current assets		5		125		367		1,726		—			2,223
Property and equipment, net		—		183		317		215		—			715
Deferred income taxes		13		887		169		51		—			1,120
Goodwill		—		—		471		578		—			1,049
Other intangibles, net		—		26		477		340		—			843
Other non-current assets		46		39		16		142		—			243
Intercompany receivables		191		393		1,747		924		(3,255		)	—
Investment in subsidiaries		169		4,595		3,900		—		(8,664		)	—
Total assets exclusive of assets under vehicle programs		424		6,248		7,464		3,976		(11,919		)	6,193
Assets under vehicle programs:
	Program cash	—		—		—		161		—			161
	Vehicles, net	—		43		57		13,767		—			13,867
	Receivables from vehicle manufacturers and other	—		3		—		250		—			253
	Investment in Avis Budget Rental Car Funding (AESOP) LLC-related party	—		—		—		445		—			445
		—		46		57		14,623		—			14,726
Total assets		$	424	$	6,294	$	7,521	$	18,599	$	(11,919	)	$	20,919
Liabilities and stockholders’ equity
Current liabilities:
	Accounts payable and other current liabilities	$	13	$	251	$	664	$	904	$	—		$	1,832
	Short-term debt and current portion of long-term debt	—		17		2		5		—			24
Total current liabilities		13		268		666		909		—			1,856
Long-term debt		—		2,900		3		641		—			3,544
Other non-current liabilities		39		81		259		366		—			745
Intercompany payables		—		2,860		393		2		(3,255		)	—
Total liabilities exclusive of liabilities under vehicle programs		52		6,109		1,321		1,918		(3,255		)	6,145
Liabilities under vehicle programs:
	Debt	—		16		52		3,443		—			3,511
	Due to Avis Budget Rental Car Funding (AESOP) LLC-related party	—		—		—		8,265		—			8,265
Deferred income taxes		—		—		1,553		174		—			1,727
Other		—		—		—		899		—			899
		—		16		1,605		12,781		—			14,402
Total stockholders’ equity		372		169		4,595		3,900		(8,664		)	372
Total liabilities and stockholders’ equity		$	424	$	6,294	$	7,521	$	18,599	$	(11,919	)	$	20,919

As of December 31, 2017

		Parent		Subsidiary Issuers		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations			Total
Assets
Current assets:
	Cash and cash equivalents	$	4	$	14	$	—	$	593	$	—		$	611
	Receivables, net	—		—		255		667		—			922
	Other current assets	4		89		101		339		—			533
Total current assets		8		103		356		1,599		—			2,066
Property and equipment, net		—		167		321		216		—			704
Deferred income taxes		14		704		154		59		—			931
Goodwill		—		—		471		602		—			1,073
Other intangibles, net		—		27		480		343		—			850
Other non-current assets		46		29		16		105		—			196
Intercompany receivables		187		382		1,506		824		(2,899		)	—
Investment in subsidiaries		381		4,681		3,938		—		(9,000		)	—
Total assets exclusive of assets under vehicle programs		636		6,093		7,242		3,748		(11,899		)	5,820
Assets under vehicle programs:
	Program cash	—		—		—		283		—			283
	Vehicles, net	—		34		61		10,531		—			10,626
	Receivables from vehicle manufacturers and other	—		1		—		546		—			547
	Investment in Avis Budget Rental Car Funding (AESOP) LLC-related party	—		—		—		423		—			423
		—		35		61		11,783		—			11,879
Total assets		$	636	$	6,128	$	7,303	$	15,531	$	(11,899	)	$	17,699
Liabilities and stockholders’ equity
Current liabilities:
	Accounts payable and other current liabilities	$	23	$	207	$	552	$	837	$	—		$	1,619
	Short-term debt and current portion of long-term debt	—		17		3		6		—			26
Total current liabilities		23		224		555		843		—			1,645
Long-term debt		—		2,910		3		660		—			3,573
Other non-current liabilities		40		83		216		378		—			717
Intercompany payables		—		2,515		382		2		(2,899		)	—
Total liabilities exclusive of liabilities under vehicle programs		63		5,732		1,156		1,883		(2,899		)	5,935
Liabilities under vehicle programs:
	Debt	—		15		57		2,669		—			2,741
	Due to Avis Budget Rental Car Funding (AESOP) LLC-related party	—		—		—		6,480		—			6,480
	Deferred income taxes	—		—		1,407		187		—			1,594
	Other	—		—		2		374		—			376
		—		15		1,466		9,710		—			11,191
Total stockholders’ equity		573		381		4,681		3,938		(9,000		)	573
Total liabilities and stockholders’ equity		$	636	$	6,128	$	7,303	$	15,531	$	(11,899	)	$	17,699

Consolidating Condensed Statements of Cash Flows

Six Months Ended June 30, 2018

	Parent			Subsidiary Issuers			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
Net cash provided by (used in) operating activities	$	75		$	107		$	66		$	968		$	(95	)	$	1,121
Investing activities
Property and equipment additions	—			(33		)	(43		)	(39		)	—			(115		)
Proceeds received on asset sales	—			2			—			4			—			6
Net assets acquired (net of cash acquired)	—			(3		)	(4		)	(21		)	—			(28		)
Other, net	—			—			—			(37		)	—			(37		)
Net cash provided by (used in) investing activities exclusive of vehicle programs	—			(34		)	(47		)	(93		)	—			(174		)
Vehicle programs:
Investment in vehicles	—			(1		)	(1		)	(8,357		)	—			(8,359		)
Proceeds received on disposition of vehicles	—			17			—			4,790			—			4,807
Investment in debt securities of Avis Budget Rental Car Funding (AESOP) LLC—related party	—			—			—			(22		)	—			(22		)
	—			16			(1		)	(3,589		)	—			(3,574		)
Net cash provided by (used in) investing activities	—			(18		)	(48		)	(3,682		)	—			(3,748		)
Financing activities
Proceeds from long-term borrowings	—			81			—			—			—			81
Payments on long-term borrowings	—			(92		)	(1		)	(1		)	—			(94		)
Net change in short-term borrowings	—			—			—			(2		)	—			(2		)
Repurchases of common stock	(78		)	—			—			—			—			(78		)
Debt financing fees	—			(9		)	—			—			—			(9		)
Other, net	2			(71		)	(12		)	(12		)	95			2
Net cash provided by (used in) financing activities exclusive of vehicle programs	(76		)	(91		)	(13		)	(15		)	95			(100		)
Vehicle programs:
Proceeds from borrowings	—			—			—			10,145			—			10,145
Payments on borrowings	—			(1		)	(5		)	(7,637		)	—			(7,643		)
Debt financing fees	—			—			—			(13		)	—			(13		)
	—			(1		)	(5		)	2,495			—			2,489
Net cash provided by (used in) financing activities	(76		)	(92		)	(18		)	2,480			95			2,389
Effect of changes in exchange rates on cash and cash equivalents, program and restricted cash	—			—			—			(2		)	—			(2		)
Net decrease in cash and cash equivalents, program and restricted cash	(1		)	(3		)	—			(236		)	—			(240		)
Cash and cash equivalents, program and restricted cash, beginning of period	4			14			—			883			—			901
Cash and cash equivalents, program and restricted cash, end of period	$	3		$	11		$	—		$	647		$	—		$	661

Six Months Ended June 30, 2017

	Parent			Subsidiary Issuers			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
Net cash provided by (used in) operating activities	$	9		$	(41	)	$	47		$	1,124		$	—		$	1,139
Investing activities
Property and equipment additions	—			(22		)	(34		)	(30		)	—			(86		)
Proceeds received on asset sales	—			1			—			3			—			4
Net assets acquired (net of cash acquired)	—			—			(4		)	(10		)	—			(14		)
Intercompany loan receipts (advances)	—			—			(1		)	(313		)	314			—
Other, net	100			—			—			—			(100		)	—
Net cash provided by (used in) investing activities exclusive of vehicle programs	100			(21		)	(39		)	(350		)	214			(96		)
Vehicle programs:
Investment in vehicles	—			1			(2		)	(8,115		)	—			(8,116		)
Proceeds received on disposition of vehicles	—			31			—			5,028			—			5,059
Investment in debt securities of Avis Budget Rental Car Funding (AESOP) LLC—related party	—			—			—			(33		)	—			(33		)
	—			32			(2		)	(3,120		)	—			(3,090		)
Net cash provided by (used in) investing activities	100			11			(41		)	(3,470		)	214			(3,186		)
Financing activities
Proceeds from long-term borrowings	—			325			—			264			—			589
Payments on long-term borrowings	—			(396		)	(1		)	(194		)	—			(591		)
Net change in short-term borrowings	—			—			—			(1		)	—			(1		)
Intercompany loan borrowings (payments)	—			313			—			1			(314		)	—
Repurchases of common stock	(109		)	—			—			—			—			(109		)
Debt financing fees	—			(3		)	—			(5		)	—			(8		)
Other, net	—			(100		)	—			—			100			—
Net cash provided by (used in) financing activities exclusive of vehicle programs	(109		)	139			(1		)	65			(214		)	(120		)
Vehicle programs:
Proceeds from borrowings	—			—			—			11,255			—			11,255
Payments on borrowings	—			—			(5		)	(8,983		)	—			(8,988		)
Debt financing fees	—			—			—			(8		)	—			(8		)
	—			—			(5		)	2,264			—			2,259
Net cash provided by (used in) financing activities	(109		)	139			(6		)	2,329			(214		)	2,139
Effect of changes in exchange rates on cash and cash equivalents, program and restricted cash	—			—			—			36			—			36
Net increase in cash and cash equivalents, program and restricted cash	—			109			—			19			—			128
Cash and cash equivalents, program and restricted cash, beginning of period	3			12			—			705			—			720
Cash and cash equivalents, program and restricted cash, end of period	$	3		$	121		$	—		$	724		$	—		$	848

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Subsequent Events

6 Months Ended

Jun. 30, 2018

Subsequent Event [Line Items]

Subsequent Events [Text Block]

19. Subsequent Events

In July 2018, the Company completed the acquisition of Morini S.p.A., a provider of vehicles primarily in Northern Italy, for approximately €35 million (approximately $41 million) plus potential earn-out payments of €5 million (approximately $6 million) based on Morini S.p.A.’s performance over the next two years.

In August 2018, the Company’s Board of Directors increased the Company’s share repurchase program authorization by $250 million.

* * * *

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Basis of Presentation and Recently Issued Accounting Pronouncements (Policies)

6 Months Ended

Jun. 30, 2018

Basis Of Presentation And Recently Issued Accounting Pronouncements [Abstract]

Basis of Presentation

Basis of Presentation

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

The Company operates the following reportable business segments:

• Americas—consisting primarily of (i) vehicle rental operations in North America, South America, Central America and the Caribbean, (ii) car sharing operations in certain of these markets, and (iii) licensees in the areas in which the Company does not operate directly.

• International—consisting primarily of (i) vehicle rental operations in Europe, the Middle East, Africa, Asia and Australasia, (ii) car sharing operations in certain of these markets, and (iii) licensees in the areas in which the Company does not operate directly.

The operating results of acquired businesses are included in the accompanying Consolidated Condensed Financial Statements from the dates of acquisition. The fair value of the assets acquired and liabilities assumed in connection with the Company’s fourth quarter 2017 acquisitions of ACL Hire Limited and various licensees in Europe and North America have not yet been finalized; however, there have been no significant changes to the preliminary allocation of the purchase price during the six months ended June 30, 2018.

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 2017 Form 10-K.

Reclassification, Policy [Policy Text Block]

Reclassifications. Certain reclassifications have been made to prior years’ Consolidated Condensed Financial Statements to conform to the current year presentation. These reclassifications have no impact on reported net income (loss) (see “Adoption of New Accounting Pronouncements” below).

Cash Flows reconciliation (2016-18) [Table Text Block]

As of December 31, 2017, the Company elected to adopt the provisions of ASU 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash,” early on a retrospective basis. ASU 2016-18 clarifies guidance on the classification and presentation of restricted cash in the statement of cash flows. The following table provides the impact of adoption on the Company’s Consolidated Condensed Statements of Cash Flows for the six months ended June 30, 2017.

	Six Months Ended June 30, 2017
	As Previously Reported			Effect of Change			As Adjusted
Decrease in program cash	$	168		$	(168	)	$	—
Other, net	(1		)	1			—
Net cash used in investing activities	(3,019		)	(167		)	(3,186		)
Effect of changes in exchange rates on cash and cash equivalents, program and restricted cash	27			9			36
Net increase in cash and cash equivalents, program and restricted cash	286			(158		)	128
Cash and cash equivalents, program and restricted cash, beginning of period	490			230			720
Cash and cash equivalents, program and restricted cash, end of period	$	776		$	72		$	848

Reconciliation of cash and cash equivalents (2016-18) [Table Text Block]

Restricted Cash. Program cash primarily represents amounts specifically designated to purchase assets under vehicle programs and/or to repay the related debt, as such the Company considers it a restricted cash equivalent. The following table provides a reconciliation of cash and cash equivalents, program and restricted cash reported within the Consolidated Condensed Balance Sheets to the amounts shown in the Consolidated Condensed Statements of Cash Flows.

	As of June 30,
	2018		2017
Cash and cash equivalents	$	489	$	776
Program cash	161		65
Restricted cash (a)	11		7
Total cash and cash equivalents, program and restricted cash	$	661	$	848

________

^(a)  Included within other current assets.

Vehicle Programs

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

Transaction Related Costs Policy [Policy Text Block]

Transaction-related costs, net. Transaction-related costs, net are classified separately in the Consolidated Condensed Statements of Comprehensive Income. These costs are comprised of expenses related to acquisition-related activities such as due diligence and other advisory costs, expenses related to the integration of the acquiree’s operations with those of the Company, including the implementation of best practices and process improvements, non-cash gains and losses related to re-acquired rights, expenses related to pre-acquisition contingencies and contingent consideration related to acquisitions.

Currency Transactions

Currency Transactions. The Company records the gain or loss on foreign-currency transactions on certain intercompany loans and the gain or loss on intercompany loan hedges within interest expense related to corporate debt, net. During the three and six months ended June 30, 2018 and 2017, the Company recorded an immaterial amount in each period.

Adoption of New Accounting Standards

Adoption of New Accounting Pronouncements

Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income

On January 1, 2018, as a result of a new accounting pronouncement, the Company early adopted ASU 2018-02, “Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income,” which allows a reclassification from accumulated other comprehensive income to retained earnings for the adjustment of deferred taxes due to the reduction of the corporate income tax rate as a result of U.S. tax reform. Accordingly, the Company has reclassified $4 million of net tax benefits from accumulated other comprehensive loss to beginning accumulated deficit related to the following (see Note 14 - Stockholders’ Equity). Prior period amounts have not been retrospectively adjusted.

Currency Translation Adjustments		Net Unrealized Gains (Losses) on Cash Flow Hedges		Net Unrealized Gains (Losses) on Available-for Sale Securities		Minimum Pension Liability Adjustment			Accumulated Other Comprehensive Income (Loss)
$	7	$	1	$	—	$	(12	)	$	(4	)

Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost

On January 1, 2018, as a result of a new accounting pronouncement, the Company adopted ASU 2017-07, “Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Costs and Net Periodic Postretirement Benefit Cost,” which requires an entity to disaggregate the components of net benefit cost recognized in its consolidated statements of operations. The adoption of this accounting pronouncement did not have a material impact on the Company’s Consolidated Condensed Financial Statements.

Recognition and Measurement of Financial Assets and Financial Liabilities

On January 1, 2018, as a result of a new accounting pronouncement, the Company adopted ASU 2016-01, “Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities,” which makes limited amendments to the classification and measurement of financial instruments. The amendments supersede the guidance to classify equity securities with readily determinable fair values into different categories (trading or available-for-sale) and require equity securities (including other ownership interests, such as partnerships, unincorporated joint ventures, and limited liability companies) to be measured at fair value with changes in the fair value recognized through net income. Accordingly, the Company has reclassified $2 million of net unrealized gains associated with available for sale equity securities from accumulated other comprehensive loss to beginning accumulated deficit (see Note 14 - Stockholders’ Equity). This ASU has no impact on the Company’s accounting for equity method investments.

Intra-Entity Transfers of Assets Other Than Inventory

On January 1, 2018, as a result of a new accounting pronouncement, the Company adopted ASU 2016-16, “Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory,” which removes the prohibition in Topic 740 against the immediate recognition of the current and deferred income tax effects of intra-entity transfers of assets other than inventory. The adoption of this accounting pronouncement did not have an impact on the Company’s Consolidated Condensed Financial Statements.

Revenue from Contracts with Customers

On January 1, 2018, as a result of a new accounting pronouncement, the Company adopted ASU 2014-09, “Revenue from Contracts with Customers (Topic 606),” which outlines a single model for entities to use in accounting for revenue arising from contracts with customers and supersedes current revenue recognition guidance. The new guidance applies to all contracts with customers except for leases, insurance contracts, financial instruments, certain nonmonetary exchanges and certain guarantees. Also, additional disclosures are required about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments. The Company has adopted the requirements of the new standard on a modified retrospective basis applied to all contracts. Prior periods have not been retrospectively adjusted. As discussed in Leases below, the Company’s rental related revenues will be accounted for under Topic 606 until the adoption of ASU 2016-02, “Leases (Topic 842)” on January 1, 2019. Under Topic 606, each transaction that generates customer loyalty points results in the deferral of revenue generally equivalent to the estimated retail value of points expected to be redeemed. The associated revenue will be recognized at the time the customer redeems the loyalty points. Previously, the Company did not defer revenue and recorded an expense associated with the incremental cost of providing the future rental at the time when the loyalty points were earned. In the Company’s Consolidated Condensed Balance Sheet at January 1, 2018, customer loyalty program liability increased approximately $50 million related to the estimated retail value of customer loyalty points earned, with a corresponding increase to accumulated deficit (approximately $40 million, net of tax) due to the cumulative impact of adopting Topic 606. Certain customers may receive cash-based rebates, which are accounted for as variable consideration under Topic 606. The Company estimates these rebates based on the expected amount to be provided to customers and reduces revenue recognized.

The impact of adoption of Topic 606 on the Company’s Consolidated Condensed Statement of Comprehensive Income for the three months ended June 30, 2018 was not material. The impact of adoption of Topic 606 on the Company’s Consolidated Condensed Statement of Comprehensive Income for the six months ended June 30, 2018 and Consolidated Condensed June 30, 2018 Balance Sheet was as follows:

	Six Months Ended June 30, 2018
	As Reported			Balances without Adoption of Topic 606			Effect of Change
Consolidated Condensed Statement of Comprehensive Income
Revenues	$	4,296		$	4,303		$	(7	)
Expenses
Operating	2,267			2,268			(1		)
Total expenses	4,387			4,388			(1		)
Loss before income taxes	(91		)	(85		)	(6		)
Benefit from income taxes	(30		)	(28		)	(2		)
Net loss	$	(61	)	$	(57	)	$	(4	)
Comprehensive loss	$	(103	)	$	(99	)	$	(4	)
	June 30, 2018
	As Reported			Balances without Adoption of Topic 606			Effect of Change
Consolidated Condensed Balance Sheet
Deferred income taxes	$	1,120		$	1,108		$	12
Total assets exclusive of assets under vehicle programs	6,193			6,181			12
Total assets	20,919			20,907			12
Accounts payable and other current liabilities	1,832			1,826			6
Total current liabilities	1,856			1,850			6
Other non-current liabilities	745			695			50
Total liabilities exclusive of liabilities under vehicle programs	6,145			6,095			50
Accumulated deficit	(1,316		)	(1,272		)	(44		)
Total stockholders’ equity	$	372		$	416		$	(44	)

Recently Issued Accounting Pronouncements

Nonemployee Share-Based Payment Accounting

In June 2018, the Financial Accounting Standards Board (“FASB”) issued ASU 2018-07, “Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting,” which simplifies the accounting for share-based payments granted to nonemployees for goods and services and aligns most of the guidance on such payments to nonemployees with the requirements for share-based payments granted to employees. ASU 2018-07 becomes effective for the Company on January 1, 2019. Early adoption is permitted. The adoption of this accounting pronouncement is not expected to have an impact on the Company's Consolidated Condensed Financial Statements.

Accounting for Hedging Activities

In August 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities,” which amends the existing guidance to allow companies to more accurately present the economic results of an entity’s risk management activities in the financial statements. ASU 2017-12 becomes effective for the Company on January 1, 2019. Early adoption is permitted. The Company is currently evaluating the effect of this accounting pronouncement on its Consolidated Condensed Financial Statements.

Measurement of Credit Losses on Financial Instruments

In June 2016, the FASB issued ASU 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which sets forth a current expected credit loss impairment model for financial assets that replaces the current incurred loss model. This model requires a financial asset (or group of financial assets), including trade receivables, measured at amortized cost to be presented at the net amount expected to be collected with an allowance for credit losses deducted from the amortized cost basis. The allowance for credit losses should reflect management’s current estimate of credit losses that are expected to occur over the remaining life of a financial asset. ASU 2016-13 becomes effective for the Company on January 1, 2020. Early adoption is permitted as of January 1, 2019. The adoption of this accounting pronouncement is not expected to have a material impact on the Company's Consolidated Condensed Financial Statements.

Leases

In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842),” which requires a lessee to recognize all long-term leases on its balance sheet as a liability for its lease obligation, measured at the present value of lease payments not yet paid, and a corresponding asset representing its right to use the underlying asset over the lease term and expands disclosure of key information about leasing arrangements. The ASU does not significantly change a lessee’s recognition, measurement and presentation of expenses and cash flows. Additionally, ASU 2016-02 aligns key aspects of lessor accounting with the new revenue recognition guidance in Topic 606 (see Revenue from Contracts with Customers above). In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach which includes a number of optional practical expedients that entities may elect to apply. In July 2018, the FASB issued ASU 2018-11, “Leases (Topic 842): Targeted Improvements,” which provides an additional transition method allowing entities to only apply the new lease standard in the year of adoption. Additionally, ASU 2018-11 provides a practical expedient for lessors to combine nonlease components with related lease components if certain conditions are met. These ASUs become effective for the Company on January 1, 2019. Early adoption is permitted.

The Company is in the process of evaluating and planning for the implementation of these ASUs, including assessing its overall impact, and expects most of its operating lease commitments will be subject to the new standard and recognized as operating lease liabilities and right-of-use assets upon adoption, which will materially increase total assets and total liabilities relative to such amounts prior to adoption. The Company has determined portions of its vehicle rental contracts that convey the right to control the use of identified assets are within the scope of the accounting guidance contained in these ASUs. As discussed in Revenue from Contracts with Customers above, the Company’s rental related revenues are accounted for under the revenue accounting standard Topic 606, until the adoption of this lease accounting standard Topic 842 on January 1, 2019.

Income Taxes

In January 2018, the FASB issued FASB Staff Question and Answer Topic 740, No. 5: Accounting for Global Intangible Low-Taxed Income (“GILTI”), which provides guidance on accounting for the GILTI provisions of the U.S. enacted tax reform legislation (“the Tax Act”). The GILTI provisions impose a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations. The guidance allows accounting for tax on GILTI to be treated as a deferred tax item or as a component of current period income tax expense in the year incurred, subject to an accounting policy election. The Company will complete its analysis in a subsequent period not to exceed one year from the date of the enactment of the Tax Act and will elect an accounting policy at such time.

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Restructuring (Tables)

6 Months Ended

Jun. 30, 2018

Restructuring and Related Activities [Abstract]

Summary Of Changes To Restructuring-Related Liabilities

		Americas			International			Total
Balance as of January 1, 2018		$	1		$	3		$	4
	Restructuring expense:
	Workforce planning	2			5			7
	Truck initiative	2			—			2
	Restructuring payment/utilization:
	Workforce planning	(2		)	(4		)	(6		)
	Truck initiative	(2		)	—			(2		)
	T17	(1		)	(2		)	(3		)
Balance as of June 30, 2018		$	—		$	2		$	2
		Personnel Related			Other (a)			Total
Balance as of January 1, 2018		$	4		$	—		$	4
	Restructuring expense:
	Workforce planning	6			1			7
	Truck initiative	—			2			2
	Restructuring payment/utilization:
	Workforce planning	(5		)	(1		)	(6		)
	Truck initiative	—			(2		)	(2		)
	T17	(3		)	—			(3		)
Balance as of June 30, 2018		$	2		$	—		$	2

__________

^(a)  Includes expenses primarily related to the disposition of vehicles.

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Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2018

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   June 30,				Six Months Ended   June 30,
		2018		2017		2018			2017
Net income (loss) for basic and diluted EPS		$	26	$	3	$	(61	)	$	(104	)
Basic weighted average shares outstanding		80.7		84.0		80.8			84.9
Options and non-vested stock (a)		0.8		1.2		—			—
Diluted weighted average shares outstanding		81.5		85.2		80.8			84.9
Earnings (loss) per share:
	Basic	$	0.33	$	0.04	$	(0.75	)	$	(1.22	)
	Diluted	$	0.32	$	0.04	$	(0.75	)	$	(1.22	)

__________

^(a)  For the three months ended June 30, 2018 and 2017, 0.2 million and 0.7 million non-vested stock awards, respectively, have an anti-dilutive effect and therefore are excluded from the computation of diluted weighted average shares outstanding. As the Company incurred a net loss for the six months ended June 30, 2018 and 2017, 0.1 million and 0.8 million outstanding options, respectively, and 1.5 million and 1.3 million non-vested stock awards, respectively, have an anti-dilutive effect and therefore are excluded from the computation of diluted weighted average shares outstanding.

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Other Current Assets (Tables)

6 Months Ended

Jun. 30, 2018

Other Current Assets Disclosure [Abstract]

Schedule of Other Current Assets [Table Text Block]

	As of June 30, 2018		As of December 31, 2017
Sales and use taxes	$	402	$	174
Prepaid expenses	252		196
Other	178		163
Other current assets	$	832	$	533

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Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule Of Intangible Assets

Intangible assets consisted of:

	As of June 30, 2018						As of December 31, 2017
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Amortized Intangible Assets
License agreements	$	310	$	154	$	156	$	281	$	140	$	141
Customer relationships	238		130		108		242		119		123
Other	49		19		30		51		18		33
Total	$	597	$	303	$	294	$	574	$	277	$	297
Unamortized Intangible Assets
Goodwill (a)	$	1,049					$	1,073
Trademarks	$	549					$	553

_________

^(a)  The change in the carrying amount since December 31, 2017, primarily reflects currency translation.

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Vehicle Rental Activities (Tables)

6 Months Ended

Jun. 30, 2018

Vehicle Rental Activities [Abstract]

Components Of The Company's Vehicles

The components of vehicles, net within assets under vehicle programs were as follows:

	As of			As of
	June 30,			December 31,
	2018			2017
Rental vehicles	$	15,188		$	11,652
Less: Accumulated depreciation	(1,629		)	(1,652		)
	13,559			10,000
Vehicles held for sale	308			626
Vehicles, net	$	13,867		$	10,626

Components Of Vehicle Depreciation And Lease Charges

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

	Three Months Ended   June 30,					Six Months Ended   June 30,
	2018			2017		2018			2017
Depreciation expense	$	536		$	516	$	996		$	953
Lease charges	64			54		120			97
(Gain) loss on sale of vehicles, net	(9		)	27		(10		)	51
Vehicle depreciation and lease charges, net	$	591		$	597	$	1,106		$	1,101

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Accounts Payable and Other Current Liabilities (Tables)

6 Months Ended

Jun. 30, 2018

Accounts Payable and Other Current Liabilities [Abstract]

Schedule of Accounts Payable and Accrued Liabilities [Table Text Block]

Accounts payable and other current liabilities consisted of:

	As of		As of
	June 30,		December 31,
	2018		2017
Accounts payable	$	412	$	359
Accrued sales and use taxes	262		218
Deferred revenue – current	247		135
Accrued advertising and marketing	197		190
Accrued payroll and related	176		176
Public liability and property damage insurance liabilities – current	144		145
Accrued insurance	102		103
Other	292		293
Accounts payable and other current liabilities	$	1,832	$	1,619

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Long-term Debt and Borrowing Arrangements (Tables)

6 Months Ended

Jun. 30, 2018

Debt Disclosure [Abstract]

Schedule Of Long-Term Debt

Long-term corporate debt and borrowing arrangements consisted of:

		As of			As of
	Maturity Dates	June 30,			December 31,
		2018			2017
Floating Rate Term Loan	March 2022	$	—		$	1,136
5⅛% Senior Notes	June 2022	400			400
5½% Senior Notes	April 2023	675			675
6⅜% Senior Notes	April 2024	350			350
4⅛% euro-denominated Senior Notes	November 2024	351			360
Floating Rate Term Loan (a)	February 2025	1,128			—
5¼% Senior Notes	March 2025	375			375
4½% euro-denominated Senior Notes	May 2025	292			300
Other (b)		43			49
Deferred financing fees		(46		)	(46		)
Total		3,568			3,599
Less: Short-term debt and current portion of long-term debt		24			26
Long-term debt		$	3,544		$	3,573

__________

^(a)  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 June 30, 2018, the floating rate term loan due 2025 bears interest at three-month LIBOR plus 200 basis points, for an aggregate rate of 4.34%. The Company has entered into a swap to hedge $700 million of its interest rate exposure related to the floating rate term loan at an aggregate rate of 3.79%.

^(b)  Primarily includes capital leases which are secured by liens on the related assets.

In February 2018, the Company amended the terms of its Floating Rate Term Loan due 2022 and extended its maturity term to 2025.

Schedule Of Committed Credit Facilities

At June 30, 2018, the committed corporate credit facilities available to the Company and/or its subsidiaries were as follows:

	Total Capacity		Outstanding Borrowings		Letters of Credit Issued		Available Capacity
Senior revolving credit facility maturing 2023 (a)	$	1,800	$	—	$	1,324	$	476
Other facilities(b)	2		2		—		—

__________

^(a)  The senior revolving credit facility bears interest at one-month LIBOR plus 200 basis points and is part of the Company’s senior credit facility, which is secured by pledges of capital stock of certain subsidiaries of the Company, and liens on substantially all of the Company’s intellectual property and certain other real and personal property.

^(b)  These facilities encompass bank overdraft lines of credit, bearing interest of 3.22% as of June 30, 2018.

In February 2018, the Company amended the terms of its Senior revolving credit facility maturing 2021 and extended its maturity to 2023.

At June 30, 2018, the Company had various uncommitted credit facilities available, under which it had drawn approximately $1 million, which bear interest at rates between 0.74% and 1.54%.

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Debt Under Vehicle Programs and Borrowing Arrangements (Tables)

6 Months Ended

Jun. 30, 2018

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
	June 30,			December 31,
	2018			2017
Americas - Debt due to Avis Budget Rental Car Funding (a)	$	8,298		$	6,516
Americas - Debt borrowings	912			660
International - Debt borrowings	2,399			1,942
International - Capital leases	211			146
Other	4			1
Deferred financing fees (b)	(48		)	(44		)
Total	$	11,776		$	9,221

__________

^(a)  The increase reflects additional borrowings principally to fund increases in the Company’s car rental fleet.

^(b)  Deferred financing fees related to Debt due to Avis Budget Rental Car Funding as of June 30, 2018 and December 31, 2017 were $33 million and $36 million, respectively.

In April 2018, the Company’s Avis Budget Rental Car Funding subsidiary issued approximately $400 million in asset-backed notes with an expected final payment date of September 2023. The weighted average interest rate was 4%. The Company used the proceeds from these borrowings to fund the repayment of maturing vehicle-backed debt and the acquisition of rental cars in the United States.

In June 2018, the Company increased its capacity under the European rental fleet securitization program by €150 million (approximately $175 million) to €1.8 billion (approximately $2.1 billion) and extended its maturity to 2021. The Company used the proceeds to finance fleet purchases for certain of the Company’s European operations.

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 June 30, 2018.

	Debt under Vehicle Programs
Within 1 year	$	1,816
Between 1 and 2 years	4,703
Between 2 and 3 years	2,997
Between 3 and 4 years	724
Between 4 and 5 years	1,156
Thereafter	428
Total	$	11,824

Schedule Of Available Funding Under The Vehicle Programs

As of June 30, 2018, available funding under the Company’s vehicle programs, including related party debt due to Avis Budget Rental Car Funding, consisted of:

	Total Capacity (a)		Outstanding Borrowings(b)		Available Capacity
Americas - Debt due to Avis Budget Rental Car Funding	$	8,988	$	8,298	$	690
Americas - Debt borrowings	971		912		59
International - Debt borrowings	3,081		2,399		682
International - Capital leases	231		211		20
Other	4		4		—
Total	$	13,275	$	11,824	$	1,451

__________

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

^(b)  The outstanding debt is collateralized by vehicles and related assets of $9.8 billion for Americas - Debt due to Avis Budget Rental Car Funding; $1.3 billion for Americas - Debt borrowings; $2.6 billion for International - Debt borrowings; and $0.2 billion for International - Capital leases.

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Stockholders' Equity (Tables)

6 Months Ended

Jun. 30, 2018

Equity [Abstract]

Accumulated Other Comprehensive Income

The components of accumulated other comprehensive income (loss) were as follows: 

		Currency Translation Adjustments			Net Unrealized Gains (Losses) on Cash Flow Hedges(a)			Net Unrealized Gains (Losses) on Available-for Sale Securities			Minimum Pension Liability Adjustment(b)			Accumulated Other Comprehensive Income (Loss)
Balance, December 31, 2017		$	71		$	5		$	2		$	(102	)	$	(24	)
	Cumulative effect of accounting change (c)	7			1			(2		)	(12		)	(6		)
Balance, January 1, 2018		$	78		$	6		$	—		$	(114	)	$	(30	)
	Other comprehensive income (loss) before reclassifications	(53		)	8			—			1			(44		)
	Amounts reclassified from accumulated other comprehensive income (loss)	—			—			—			2			2
Net current-period other comprehensive income (loss)		(53		)	8			—			3			(42		)
Balance, June 30, 2018		$	25		$	14		$	—		$	(111	)	$	(72	)
Balance, January 1, 2017		$	(39	)	$	2		$	1		$	(118	)	$	(154	)
	Other comprehensive income (loss) before reclassifications	73			(2		)	1			—			72
	Amounts reclassified from accumulated other comprehensive income (loss)	—			1			—			3			4
Net current-period other comprehensive income (loss)		73			(1		)	1			3			76
Balance, June 30, 2017		$	34		$	1		$	2		$	(115	)	$	(78	)

__________

All components of accumulated other comprehensive income (loss) are net of tax, except currency translation adjustments, which exclude income taxes related to indefinite investments in foreign subsidiaries and include a $53 million gain, net of tax, as of June 30, 2018 related to the Company’s hedge of its net investment in euro-denominated foreign operations (see Note 16 - Financial Instruments).

^(a)  For the three and six months ended June 30, 2017, the amount reclassified from accumulated other comprehensive income (loss) into corporate interest expense were $1 million ($0 million, net of tax) and $2 million ($1 million, net of tax), respectively.

^(b)  For the three and six months ended June 30, 2018, amounts reclassified from accumulated other comprehensive income (loss) into selling, general and administrative expenses were $2 million ($1 million, net of tax) and $4 million ($2 million, net of tax), respectively. For the three and six months ended June 30, 2017, amounts reclassified from accumulated other comprehensive income (loss) into selling, general and administrative expenses were $2 million ($2 million, net of tax) and $4 million ($3 million, net of tax), respectively.

^(c)  See Note 1 - Basis of Presentation for the impact of adoption of ASU 2016-01 and ASU 2018-02.

Components Of Other Comprehensive Income

The components of other comprehensive income (loss) were as follows: 

		Three Months Ended   June 30,						Six Months Ended   June 30,
		2018			2017			2018			2017
Net income (loss)		$	26		$	3		$	(61	)	$	(104	)
Other comprehensive income (loss):
	Currency translation adjustments (net of tax of $(10), $17, $(5) and $20, respectively)	(54		)	48			(53		)	73
	Net unrealized gain (loss) on available-for-sale securities (net of tax of $0 in each period)	—			1			—			1
	Net unrealized gain (loss) on cash flow hedges (net of tax of $(1), $1, $(3) and $1, respectively)	2			(2		)	8			(1		)
	Minimum pension liability adjustment (net of tax of $0, $0, $(1) and $(1), respectively)	2			1			3			3
		(50		)	48			(42		)	76
Comprehensive income (loss)		$	(24	)	$	51		$	(103	)	$	(28	)

__________

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Stock-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2018

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

Stock Based Compensation Activity

The Company recorded stock-based compensation expense of $7 million and $4 million ($5 million and $3 million, net of tax) during the three months ended June 30, 2018 and 2017, respectively, and $12 million and $5 million ($9 million and $3 million, net of tax) during the six months ended June 30, 2018 and 2017, respectively.

The activity related to restricted stock units (“RSUs”) consisted of (in thousands of shares):

			Number of Shares		Weighted Average Grant Date Fair Value		Weighted Average Remaining Contractual Term (years)	Aggregate Intrinsic Value (in millions)
Time-based RSUs
	Outstanding at January 1, 2018		1,160		$	34.54
		Granted (a)	317		48.66
		Vested (b)	(359	)	35.14
		Forfeited	(39	)	34.98
	Outstanding and expected to vest at June 30, 2018(c)		1,079		$	38.47	1.1	$	35
Performance-based and market-based RSUs
	Outstanding at January 1, 2018		994		$	33.06
		Granted (a)	349		48.72
		Vested	—		—
		Forfeited	(145	)	53.36
	Outstanding at June 30, 2018		1,198		$	35.17	1.5	$	39
	Outstanding and expected to vest at June 30, 2018(c)		266		$	44.49	2.3	$	9

__________

^(a)  Reflects the maximum number of stock units assuming achievement of all performance-, market- and time-vesting criteria and does not include those for non-employee directors. The weighted-average fair value of time-based RSUs and performance-based RSUs granted during the six months ended June 30, 2017 was $34.41.

^(b)  The total fair value of RSUs vested during June 30, 2018 and 2017 was $13 million and $22 million, respectively.

^(c)  Aggregate unrecognized compensation expense related to time-based RSUs and performance-based RSUs amounted to $41 million and will be recognized over a weighted average vesting period of 1.3 years.

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		Weighted Average Remaining Contractual Term (years)	Aggregate Intrinsic Value (in millions)
Outstanding at January 1, 2018		273		$	7.08	1.7	$	10
	Granted	—		—
	Exercised	(186	)	9.99			7
	Forfeited/expired	—		—
Outstanding and exercisable at June 30, 2018		87		$	0.79	0.6	$	3

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Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2018

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 June 30, 2018
Interest rate caps (a)	$	8,934
Interest rate swaps	1,000
Foreign exchange contracts	1,276
Commodity contracts (millions of gallons of unleaded gasoline)	9

__________

^(a)  Represents $5.9 billion of interest rate caps sold, partially offset by approximately $3.0 billion of interest rate caps purchased. These amounts exclude $3.0 billion of interest rate caps purchased by the Company’s Avis Budget Rental Car Funding subsidiary as it is not consolidated by the Company.

Fair Value Of Derivative Instruments

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

		As of June 30, 2018				As of December 31, 2017
		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)	$	19	$	—	$	8	$	—
Derivatives not designated as hedging instruments
	Interest rate caps (b)	1		5		—		1
	Foreign exchange contracts (c)	14		5		3		7
	Commodity contracts (c)	1		—		—		—
	Total	$	35	$	10	$	11	$	8

__________

Amounts in this table exclude derivatives issued by Avis Budget Rental Car Funding; however, certain amounts related to the derivatives held by Avis Budget Rental Car Funding are included within accumulated other comprehensive income (loss).

^(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.

Derivative Instruments, Gain (Loss) [Table Text Block]

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

		Three Months Ended   June 30,						Six Months Ended   June 30,
		2018			2017			2018			2017
Derivatives designated as hedging instruments (a)
	Interest rate swaps	$	2		$	(2	)	$	8		$	(1	)
	Euro-denominated notes	26			(26		)	13			(31		)
Derivatives not designated as hedging instruments (b)
	Interest rate caps (c)	(1		)	—			(1		)	—
	Foreign exchange contracts (d)	28			(21		)	19			(33		)
	Commodity contracts (e)	1			(1		)	1			(2		)
	Total	$	56		$	(50	)	$	40		$	(67	)

__________

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

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

^(c)  Included primarily in vehicle interest, net.

^(d)  For the three months ended June 30, 2018, included a $20 million gain in interest expense and a $8 million gain in operating expense and for the six months ended June 30, 2018, included a $7 million gain in interest expense and a $12 million gain in operating expense. For the three months ended June 30, 2017, included a $11 million loss in interest expense and a $10 million loss in operating expense and for the six months ended June 30, 2017, included a $18 million loss in interest expense and a $15 million loss in operating expense.

^(e)  Included in operating expense.

Schedule of Carrying Values and Estimated Fair Values of Debt Instruments [Table Text Block]

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

		As of June 30, 2018				As of December 31, 2017
		Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Corporate debt
	Short-term debt and current portion of long-term debt	$	24	$	24	$	26	$	26
	Long-term debt	3,544		3,539		3,573		3,677
Debt under vehicle programs
	Vehicle-backed debt due to Avis Budget Rental Car Funding	$	8,265	$	8,270	$	6,480	$	6,537
	Vehicle-backed debt	3,506		3,520		2,740		2,745
	Interest rate swaps and interest rate caps (a)	5		5		1		1

__________

^(a)  Derivatives in a liability position.

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Segment Information (Tables)

6 Months Ended

Jun. 30, 2018

Segment Reporting [Abstract]

Summary Of Segments Information

			Three Months Ended June 30,
			2018					2017
			Revenues		Adjusted EBITDA			Revenues		Adjusted EBITDA
Americas			$	1,590	$	107		$	1,565	$	96
International			738		71			673		59
Corporate and Other (a)			—		(17		)	—		(15		)
	Total Company		$	2,328	$	161		$	2,238	$	140
Reconciliation of Adjusted EBITDA to income before income taxes
					2018					2017
Adjusted EBITDA					$	161				$	140
Less:		Non-vehicle related depreciation and amortization			67					65
		Interest expense related to corporate debt, net			49					48
		Restructuring and other related charges			4					38
		Transaction-related costs, net			3					5
		Charges for legal matter, net			—					(27		)
Income before income taxes					$	38				$	11

__________

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

			Six Months Ended June 30,
			2018					2017
			Revenues		Adjusted EBITDA			Revenues		Adjusted EBITDA
Americas			$	2,938	$	122		$	2,879	$	76
International			1,358		74			1,198		66
Corporate and Other (a)			—		(33		)	—		(29		)
	Total Company		$	4,296	$	163		$	4,077	$	113
Reconciliation of Adjusted EBITDA to loss before income taxes
					2018					2017
Adjusted EBITDA					$	163				$	113
Less:		Non-vehicle related depreciation and amortization			128					128
		Interest expense related to corporate debt, net:
		Interest expense			95					97
		Early extinguishment of debt			5					3
		Restructuring and other related charges			10					45
		Non-operational charges related to shareholder activist activity			9					—
		Transaction-related costs, net			7					8
		Charges for legal matter, net			—					(14		)
Loss before income taxes					$	(91	)			$	(154	)

__________

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

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

6 Months Ended

Jun. 30, 2018

Jun. 30, 2017

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Cash Flows reconciliation GNG (2016-18) [Table Text Block]

The following tables provide the impact of adoption of ASU 2016-18 on the Company’s Consolidating Condensed Statements of Cash Flows for the six months ended June 30, 2017.

	Six Months Ended June 30, 2017
	As Previously Reported Non-Guarantor			Effect of Change			As Adjusted Non-Guarantor			As Previously Reported Total			Effect of Change			As Adjusted Total
Decrease in program cash	$	168		$	(168	)	$	—		$	168		$	(168	)	$	—
Other, net	(1		)	1			—			(1		)	1			—
Net cash used in investing activities	(3,303		)	(167		)	(3,470		)	(3,019		)	(167		)	(3,186		)
Effect of changes in exchange rates on cash and cash equivalents, program and restricted cash	27			9			36			27			9			36
Net increase in cash and cash equivalents, program and restricted cash	177			(158		)	19			286			(158		)	128
Cash and cash equivalents, program and restricted cash, beginning of period	475			230			705			490			230			720
Cash and cash equivalents, program and restricted cash, end of period	$	652		$	72		$	724		$	776		$	72		$	848

Reconciliation of cash and cash equivalents GNG (2016-18) [Table Text Block]

The following table provides a reconciliation of the cash and cash equivalents, program and restricted cash reported within the Consolidating Condensed Balance Sheets to the amounts shown in the Consolidating Condensed Statements of Cash Flows.

	As of June 30,
	2018				2017
	Non-Guarantor		Total		Non-Guarantor		Total
Cash and cash equivalents	$	475	$	489	$	652	$	776
Program cash	161		161		65		65
Restricted cash (a)	11		11		7		7
Total cash and cash equivalents, program and restricted cash	$	647	$	661	$	724	$	848

_________

^(a)  Included within other current assets.

Consolidating Condensed Statements of Comprehensive Income

Three Months Ended June 30, 2018

			Parent			Subsidiary Issuers			Guarantor Subsidiaries			Non- Guarantor Subsidiaries		Eliminations			Total
Revenues			$	—		$	—		$	1,395		$	1,590	$	(657	)	$	2,328
Expenses
	Operating		1			(3		)	677			500		—			1,175
	Vehicle depreciation and lease charges, net		—			—			605			582		(596		)	591
	Selling, general and administrative		10			3			176			132		—			321
	Vehicle interest, net		—			—			61			80		(61		)	80
	Non-vehicle related depreciation and amortization		—			1			36			30		—			67
	Interest expense related to corporate debt, net:
		Interest expense	—			39			1			9		—			49
		Intercompany interest expense (income)	(3		)	(31		)	5			29		—			—
	Restructuring and other related charges		—			—			1			3		—			4
	Transaction-related costs, net		—			1			1			1		—			3
Total expenses			8			10			1,563			1,366		(657		)	2,290
Income (loss) before income taxes and equity in earnings of subsidiaries			(8		)	(10		)	(168		)	224		—			38
Provision for (benefit from) income taxes			(5		)	(3		)	14			6		—			12
Equity in earnings of subsidiaries			29			36			218			—		(283		)	—
Net income			$	26		$	29		$	36		$	218	$	(283	)	$	26
Comprehensive income (loss)			$	(24	)	$	(21	)	$	(16	)	$	165	$	(128	)	$	(24	)

Six Months Ended June 30, 2018

			Parent			Subsidiary Issuers			Guarantor Subsidiaries			Non- Guarantor Subsidiaries		Eliminations			Total
Revenues			$	—		$	—		$	2,579		$	2,949	$	(1,232	)	$	4,296
Expenses
	Operating		2			1			1,298			966		—			2,267
	Vehicle depreciation and lease charges, net		—			—			1,141			1,086		(1,121		)	1,106
	Selling, general and administrative		28			6			331			252		—			617
	Vehicle interest, net		—			—			113			150		(111		)	152
	Non-vehicle related depreciation and amortization		—			1			72			55		—			128
	Interest expense related to corporate debt, net:
		Interest expense	—			78			2			15		—			95
		Intercompany interest expense (income)	(6		)	(9		)	11			4		—			—
		Early extinguishment of debt	—			5			—			—		—			5
	Restructuring and other related charges		—			—			4			6		—			10
	Transaction-related costs, net		—			1			1			5		—			7
Total expenses			24			83			2,973			2,539		(1,232		)	4,387
Income (loss) before income taxes and equity in earnings of subsidiaries			(24		)	(83		)	(394		)	410		—			(91		)
Provision for (benefit from) income taxes			(11		)	(22		)	(5		)	8		—			(30		)
Equity in earnings (loss) of subsidiaries			(48		)	13			402			—		(367		)	—
Net income (loss)			$	(61	)	$	(48	)	$	13		$	402	$	(367	)	$	(61	)
Comprehensive income (loss)			$	(103	)	$	(90	)	$	(37	)	$	349	$	(222	)	$	(103	)

Three Months Ended June 30, 2017

			Parent			Subsidiary Issuers			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Total
Revenues			$	—		$	—		$	1,371		$	1,530		$	(663	)	$	2,238
Expenses
	Operating		1			9			644			454			—			1,108
	Vehicle depreciation and lease charges, net		—			—			614			592			(609		)	597
	Selling, general and administrative		10			2			158			123			—			293
	Vehicle interest, net		—			—			52			75			(54		)	73
	Non-vehicle related depreciation and amortization		—			1			40			24			—			65
	Interest expense related to corporate debt, net:
		Interest expense	—			83			—			(35		)	—			48
		Intercompany interest expense (income)	(3		)	5			5			(7		)	—			—
		Early extinguishment of debt	—			1			—			(1		)	—			—
	Restructuring and other related charges		—			2			33			3			—			38
	Transaction-related costs, net		—			—			—			5			—			5
Total expenses			8			103			1,546			1,233			(663		)	2,227
Income (loss) before income taxes and equity in earnings of subsidiaries			(8		)	(103		)	(175		)	297			—			11
Provision for (benefit from) income taxes			(2		)	(39		)	11			38			—			8
Equity in earnings of subsidiaries			9			73			259			—			(341		)	—
Net income			$	3		$	9		$	73		$	259		$	(341	)	$	3
Comprehensive income			$	51		$	58		$	123		$	309		$	(490	)	$	51

Six Months Ended June 30, 2017

			Parent			Subsidiary Issuers			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Total
Revenues			$	—		$	—		$	2,524		$	2,801		$	(1,248	)	$	4,077
Expenses
	Operating		2			13			1,284			858			—			2,157
	Vehicle depreciation and lease charges, net		—			—			1,160			1,085			(1,144		)	1,101
	Selling, general and administrative		20			4			311			220			—			555
	Vehicle interest, net		—			—			97			144			(104		)	137
	Non-vehicle related depreciation and amortization		—			1			80			47			—			128
	Interest expense related to corporate debt, net:
		Interest expense	—			129			1			(33		)	—			97
		Intercompany interest expense (income)	(6		)	6			11			(11		)	—			—
		Early extinguishment of debt	—			4			—			(1		)	—			3
	Restructuring and other related charges		—			2			39			4			—			45
	Transaction-related costs, net		—			—			—			8			—			8
Total expenses			16			159			2,983			2,321			(1,248		)	4,231
Income (loss) before income taxes and equity in earnings of subsidiaries			(16		)	(159		)	(459		)	480			—			(154		)
Provision for (benefit from) income taxes			(4		)	(62		)	(28		)	44			—			(50		)
Equity in earnings (loss) of subsidiaries			(92		)	5			436			—			(349		)	—
Net income (loss)			$	(104	)	$	(92	)	$	5		$	436		$	(349	)	$	(104	)
Comprehensive income (loss)			$	(28	)	$	(16	)	$	82		$	512		$	(578	)	$	(28	)

Schedule Of Condensed Consolidating Balance Sheet Table

As of June 30, 2018

		Parent		Subsidiary Issuers		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations			Total
Assets
Current assets:
	Cash and cash equivalents	$	3	$	11	$	—	$	475	$	—		$	489
	Receivables, net	—		—		248		654		—			902
	Other current assets	2		114		119		597		—			832
Total current assets		5		125		367		1,726		—			2,223
Property and equipment, net		—		183		317		215		—			715
Deferred income taxes		13		887		169		51		—			1,120
Goodwill		—		—		471		578		—			1,049
Other intangibles, net		—		26		477		340		—			843
Other non-current assets		46		39		16		142		—			243
Intercompany receivables		191		393		1,747		924		(3,255		)	—
Investment in subsidiaries		169		4,595		3,900		—		(8,664		)	—
Total assets exclusive of assets under vehicle programs		424		6,248		7,464		3,976		(11,919		)	6,193
Assets under vehicle programs:
	Program cash	—		—		—		161		—			161
	Vehicles, net	—		43		57		13,767		—			13,867
	Receivables from vehicle manufacturers and other	—		3		—		250		—			253
	Investment in Avis Budget Rental Car Funding (AESOP) LLC-related party	—		—		—		445		—			445
		—		46		57		14,623		—			14,726
Total assets		$	424	$	6,294	$	7,521	$	18,599	$	(11,919	)	$	20,919
Liabilities and stockholders’ equity
Current liabilities:
	Accounts payable and other current liabilities	$	13	$	251	$	664	$	904	$	—		$	1,832
	Short-term debt and current portion of long-term debt	—		17		2		5		—			24
Total current liabilities		13		268		666		909		—			1,856
Long-term debt		—		2,900		3		641		—			3,544
Other non-current liabilities		39		81		259		366		—			745
Intercompany payables		—		2,860		393		2		(3,255		)	—
Total liabilities exclusive of liabilities under vehicle programs		52		6,109		1,321		1,918		(3,255		)	6,145
Liabilities under vehicle programs:
	Debt	—		16		52		3,443		—			3,511
	Due to Avis Budget Rental Car Funding (AESOP) LLC-related party	—		—		—		8,265		—			8,265
Deferred income taxes		—		—		1,553		174		—			1,727
Other		—		—		—		899		—			899
		—		16		1,605		12,781		—			14,402
Total stockholders’ equity		372		169		4,595		3,900		(8,664		)	372
Total liabilities and stockholders’ equity		$	424	$	6,294	$	7,521	$	18,599	$	(11,919	)	$	20,919

As of December 31, 2017

		Parent		Subsidiary Issuers		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations			Total
Assets
Current assets:
	Cash and cash equivalents	$	4	$	14	$	—	$	593	$	—		$	611
	Receivables, net	—		—		255		667		—			922
	Other current assets	4		89		101		339		—			533
Total current assets		8		103		356		1,599		—			2,066
Property and equipment, net		—		167		321		216		—			704
Deferred income taxes		14		704		154		59		—			931
Goodwill		—		—		471		602		—			1,073
Other intangibles, net		—		27		480		343		—			850
Other non-current assets		46		29		16		105		—			196
Intercompany receivables		187		382		1,506		824		(2,899		)	—
Investment in subsidiaries		381		4,681		3,938		—		(9,000		)	—
Total assets exclusive of assets under vehicle programs		636		6,093		7,242		3,748		(11,899		)	5,820
Assets under vehicle programs:
	Program cash	—		—		—		283		—			283
	Vehicles, net	—		34		61		10,531		—			10,626
	Receivables from vehicle manufacturers and other	—		1		—		546		—			547
	Investment in Avis Budget Rental Car Funding (AESOP) LLC-related party	—		—		—		423		—			423
		—		35		61		11,783		—			11,879
Total assets		$	636	$	6,128	$	7,303	$	15,531	$	(11,899	)	$	17,699
Liabilities and stockholders’ equity
Current liabilities:
	Accounts payable and other current liabilities	$	23	$	207	$	552	$	837	$	—		$	1,619
	Short-term debt and current portion of long-term debt	—		17		3		6		—			26
Total current liabilities		23		224		555		843		—			1,645
Long-term debt		—		2,910		3		660		—			3,573
Other non-current liabilities		40		83		216		378		—			717
Intercompany payables		—		2,515		382		2		(2,899		)	—
Total liabilities exclusive of liabilities under vehicle programs		63		5,732		1,156		1,883		(2,899		)	5,935
Liabilities under vehicle programs:
	Debt	—		15		57		2,669		—			2,741
	Due to Avis Budget Rental Car Funding (AESOP) LLC-related party	—		—		—		6,480		—			6,480
	Deferred income taxes	—		—		1,407		187		—			1,594
	Other	—		—		2		374		—			376
		—		15		1,466		9,710		—			11,191
Total stockholders’ equity		573		381		4,681		3,938		(9,000		)	573
Total liabilities and stockholders’ equity		$	636	$	6,128	$	7,303	$	15,531	$	(11,899	)	$	17,699

Consolidating Condensed Statements Of Cash Flows

Six Months Ended June 30, 2018

	Parent			Subsidiary Issuers			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
Net cash provided by (used in) operating activities	$	75		$	107		$	66		$	968		$	(95	)	$	1,121
Investing activities
Property and equipment additions	—			(33		)	(43		)	(39		)	—			(115		)
Proceeds received on asset sales	—			2			—			4			—			6
Net assets acquired (net of cash acquired)	—			(3		)	(4		)	(21		)	—			(28		)
Other, net	—			—			—			(37		)	—			(37		)
Net cash provided by (used in) investing activities exclusive of vehicle programs	—			(34		)	(47		)	(93		)	—			(174		)
Vehicle programs:
Investment in vehicles	—			(1		)	(1		)	(8,357		)	—			(8,359		)
Proceeds received on disposition of vehicles	—			17			—			4,790			—			4,807
Investment in debt securities of Avis Budget Rental Car Funding (AESOP) LLC—related party	—			—			—			(22		)	—			(22		)
	—			16			(1		)	(3,589		)	—			(3,574		)
Net cash provided by (used in) investing activities	—			(18		)	(48		)	(3,682		)	—			(3,748		)
Financing activities
Proceeds from long-term borrowings	—			81			—			—			—			81
Payments on long-term borrowings	—			(92		)	(1		)	(1		)	—			(94		)
Net change in short-term borrowings	—			—			—			(2		)	—			(2		)
Repurchases of common stock	(78		)	—			—			—			—			(78		)
Debt financing fees	—			(9		)	—			—			—			(9		)
Other, net	2			(71		)	(12		)	(12		)	95			2
Net cash provided by (used in) financing activities exclusive of vehicle programs	(76		)	(91		)	(13		)	(15		)	95			(100		)
Vehicle programs:
Proceeds from borrowings	—			—			—			10,145			—			10,145
Payments on borrowings	—			(1		)	(5		)	(7,637		)	—			(7,643		)
Debt financing fees	—			—			—			(13		)	—			(13		)
	—			(1		)	(5		)	2,495			—			2,489
Net cash provided by (used in) financing activities	(76		)	(92		)	(18		)	2,480			95			2,389
Effect of changes in exchange rates on cash and cash equivalents, program and restricted cash	—			—			—			(2		)	—			(2		)
Net decrease in cash and cash equivalents, program and restricted cash	(1		)	(3		)	—			(236		)	—			(240		)
Cash and cash equivalents, program and restricted cash, beginning of period	4			14			—			883			—			901
Cash and cash equivalents, program and restricted cash, end of period	$	3		$	11		$	—		$	647		$	—		$	661

Six Months Ended June 30, 2017

	Parent			Subsidiary Issuers			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
Net cash provided by (used in) operating activities	$	9		$	(41	)	$	47		$	1,124		$	—		$	1,139
Investing activities
Property and equipment additions	—			(22		)	(34		)	(30		)	—			(86		)
Proceeds received on asset sales	—			1			—			3			—			4
Net assets acquired (net of cash acquired)	—			—			(4		)	(10		)	—			(14		)
Intercompany loan receipts (advances)	—			—			(1		)	(313		)	314			—
Other, net	100			—			—			—			(100		)	—
Net cash provided by (used in) investing activities exclusive of vehicle programs	100			(21		)	(39		)	(350		)	214			(96		)
Vehicle programs:
Investment in vehicles	—			1			(2		)	(8,115		)	—			(8,116		)
Proceeds received on disposition of vehicles	—			31			—			5,028			—			5,059
Investment in debt securities of Avis Budget Rental Car Funding (AESOP) LLC—related party	—			—			—			(33		)	—			(33		)
	—			32			(2		)	(3,120		)	—			(3,090		)
Net cash provided by (used in) investing activities	100			11			(41		)	(3,470		)	214			(3,186		)
Financing activities
Proceeds from long-term borrowings	—			325			—			264			—			589
Payments on long-term borrowings	—			(396		)	(1		)	(194		)	—			(591		)
Net change in short-term borrowings	—			—			—			(1		)	—			(1		)
Intercompany loan borrowings (payments)	—			313			—			1			(314		)	—
Repurchases of common stock	(109		)	—			—			—			—			(109		)
Debt financing fees	—			(3		)	—			(5		)	—			(8		)
Other, net	—			(100		)	—			—			100			—
Net cash provided by (used in) financing activities exclusive of vehicle programs	(109		)	139			(1		)	65			(214		)	(120		)
Vehicle programs:
Proceeds from borrowings	—			—			—			11,255			—			11,255
Payments on borrowings	—			—			(5		)	(8,983		)	—			(8,988		)
Debt financing fees	—			—			—			(8		)	—			(8		)
	—			—			(5		)	2,264			—			2,259
Net cash provided by (used in) financing activities	(109		)	139			(6		)	2,329			(214		)	2,139
Effect of changes in exchange rates on cash and cash equivalents, program and restricted cash	—			—			—			36			—			36
Net increase in cash and cash equivalents, program and restricted cash	—			109			—			19			—			128
Cash and cash equivalents, program and restricted cash, beginning of period	3			12			—			705			—			720
Cash and cash equivalents, program and restricted cash, end of period	$	3		$	121		$	—		$	724		$	—		$	848

XML

Basis Of Presentation And Recently Issued Accounting Pronouncements (Narrative) (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017	Dec. 31, 2016
Impact of ASU 2018-02 [Line Items]
Cash and Cash Equivalents, at Carrying Value	$ 489	$ 776	$ 489	$ 776	$ 611
Document Period End Date			Jun. 30, 2018
Revenues	2,328	2,238	$ 4,296	4,077
Operating Costs and Expenses	(1,175)	(1,108)	(2,267)	(2,157)
Costs and Expenses	(2,290)	(2,227)	(4,387)	(4,231)
Income (loss) before income taxes	38	11	(91)	(154)
Provision for (benefit from) income taxes	12	8	(30)	(50)
Net Income (Loss) Attributable to Parent	26	3	(61)	(104)
Comprehensive Income (Loss), Net of Tax, Attributable to Parent	(24)	51	(103)	(28)
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent	1,120		1,120		931
Total assets exclusive of assets under vehicle programs	6,193		6,193		5,820
Assets	20,919		20,919		17,699
Accounts payable and other current liabilities	1,832		1,832		1,619
Total current liabilities	1,856		1,856		1,645
Other non-current liabilities	745		745		717
Total Liabilities Exclusive Of Liabilities Under Vehicle Programs	6,145		6,145		5,935
Retained Earnings (Accumulated Deficit)	(1,316)		(1,316)		(1,222)
Total stockholders’ equity	372		372		573
Program cash	161	65	161	65	283
Restricted Cash and Cash Equivalents	11	7	11	7
Decrease Increase In Program Cash				0
Payments for (Proceeds from) Other Investing Activities			37	0
Net Cash Provided by (Used in) Investing Activities			(3,748)	(3,186)
Effect of changes in exchange rates on cash and cash equivalents, program and restricted cash			(2)	36
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect			(240)	128
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	661	848	661	848	901	$ 720
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets					6
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member]
Impact of ASU 2018-02 [Line Items]
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets					12
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member]
Impact of ASU 2018-02 [Line Items]
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets					2
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member]
Impact of ASU 2018-02 [Line Items]
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets					(1)
Accumulated Foreign Currency Adjustment Attributable to Parent [Member]
Impact of ASU 2018-02 [Line Items]
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets					(7)
Accounting Standards Update 2018-02 [Member]
Impact of ASU 2018-02 [Line Items]
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets					4
Accounting Standards Update 2018-02 [Member] | Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member]
Impact of ASU 2018-02 [Line Items]
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets					(12)
Accounting Standards Update 2018-02 [Member] | Accumulated Net Investment Gain (Loss) Attributable to Parent [Member]
Impact of ASU 2018-02 [Line Items]
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets					0
Accounting Standards Update 2018-02 [Member] | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member]
Impact of ASU 2018-02 [Line Items]
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets					1
Accounting Standards Update 2018-02 [Member] | Accumulated Foreign Currency Adjustment Attributable to Parent [Member]
Impact of ASU 2018-02 [Line Items]
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets					$ 7
Calculated under Revenue Guidance in Effect before Topic 606 [Member]
Impact of ASU 2018-02 [Line Items]
Revenues			4,303
Operating Costs and Expenses			(2,268)
Costs and Expenses			(4,388)
Income (loss) before income taxes			(85)
Provision for (benefit from) income taxes			(28)
Net Income (Loss) Attributable to Parent			(57)
Comprehensive Income (Loss), Net of Tax, Attributable to Parent			(99)
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent	1,108		1,108
Total assets exclusive of assets under vehicle programs	6,181		6,181
Assets	20,907		20,907
Accounts payable and other current liabilities	1,826		1,826
Total current liabilities	1,850		1,850
Other non-current liabilities	695		695
Total Liabilities Exclusive Of Liabilities Under Vehicle Programs	6,095		6,095
Retained Earnings (Accumulated Deficit)	(1,272)		(1,272)
Total stockholders’ equity	416		416
Restatement Adjustment [Member]
Impact of ASU 2018-02 [Line Items]
Revenues			(7)
Operating Costs and Expenses			(1)
Costs and Expenses			(1)
Income (loss) before income taxes			(6)
Provision for (benefit from) income taxes			(2)
Net Income (Loss) Attributable to Parent			(4)
Comprehensive Income (Loss), Net of Tax, Attributable to Parent			(4)
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent	12		12
Total assets exclusive of assets under vehicle programs	12		12
Assets	12		12
Accounts payable and other current liabilities	6		6
Total current liabilities	6		6
Other non-current liabilities	50		50
Total Liabilities Exclusive Of Liabilities Under Vehicle Programs	50		50
Retained Earnings (Accumulated Deficit)	(44)		(44)
Total stockholders’ equity	$ (44)		$ (44)
Scenario, Previously Reported [Member]
Impact of ASU 2018-02 [Line Items]
Decrease Increase In Program Cash				168
Payments for (Proceeds from) Other Investing Activities				(1)
Net Cash Provided by (Used in) Investing Activities				(3,019)
Effect of changes in exchange rates on cash and cash equivalents, program and restricted cash				27
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect				286
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents		776		776		490
Restatement Adjustment [Member]
Impact of ASU 2018-02 [Line Items]
Decrease Increase In Program Cash				(168)
Payments for (Proceeds from) Other Investing Activities				1
Net Cash Provided by (Used in) Investing Activities				(167)
Effect of changes in exchange rates on cash and cash equivalents, program and restricted cash				9
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect				(158)
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents		$ 72		$ 72		$ 230

XML

Revenues (Details) - USD ($)
$ in Millions

3 Months Ended

6 Months Ended

Jun. 30, 2018

Jun. 30, 2017

Jun. 30, 2018

Jun. 30, 2017

Revenues [Abstract]

Deferred Revenue Rollforward [Table Text Block]

The following table presents changes in the Company’s contract liabilities during the six months ended June 30, 2018.

	Balance at January 1, 2018		Revenue deferred		Revenue recognized		Balance at June 30, 2018
Prepaid rentals(a)	$	101	$	891	$	782	$	210
Other deferred revenue(b)	93		108		108		93
Total deferred revenue	$	194	$	999	$	890	$	303

________

^(a)  At June 30, 2018, included in accounts payable and other current liabilities.

^(b)  At June 30, 2018, $37 million included in accounts payable and other current liabilities and $56 million in other non-current liabilities. Non-current amounts are expected to be recognized as revenue within two to three years.

Disaggregation of Revenue by Geography [Table Text Block]

The following table presents the Company’s revenues disaggregated by geography.

	Three Months Ended June 30, 2018		Six Months Ended June 30, 2018
Americas	$	1,590	$	2,938
Europe, Middle East and Africa	600		1,047
Asia and Australasia	138		311
Total revenues	$	2,328	$	4,296

Disaggregation of Revenue by Brand [Table Text Block]

The following table presents the Company’s revenues disaggregated by brand.

	Three Months Ended June 30, 2018		Six Months Ended June 30, 2018
Avis	$	1,351	$	2,496
Budget	777		1,419
Other	200		381
Total revenues	$	2,328	$	4,296

________

Other includes Zipcar, Payless, Apex, Maggiore and FranceCars.

Segment Reporting, Revenue Reconciling Item [Line Items]

Revenues

$ 2,328

$ 2,238

$ 4,296

$ 4,077

Budget

Segment Reporting, Revenue Reconciling Item [Line Items]

Revenues

777

1,419

Avis

Segment Reporting, Revenue Reconciling Item [Line Items]

Revenues

1,351

2,496

Other

Segment Reporting, Revenue Reconciling Item [Line Items]

Revenues

200

381

Americas

Segment Reporting, Revenue Reconciling Item [Line Items]

Revenues

1,590

$ 1,565

2,938

$ 2,879

Europe, Middle East and Africa

Segment Reporting, Revenue Reconciling Item [Line Items]

Revenues

600

1,047

Asia and Australasia

Segment Reporting, Revenue Reconciling Item [Line Items]

Revenues

$ 138

$ 311

XML

Revenues Deferred Revenue (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Deferred Revenue Rollforward [Line Items]
Document Period End Date	Jun. 30, 2018
Deferred Revenue	$ 303	$ 194
Deferred Revenue, Additions	999
Deferred Revenue, Revenue Recognized	890
Prepaid Rentals [Member]
Deferred Revenue Rollforward [Line Items]
Deferred Revenue	210	101
Deferred Revenue, Additions	891
Deferred Revenue, Revenue Recognized	782
Other Deferred Revenue [Member]
Deferred Revenue Rollforward [Line Items]
Deferred Revenue	93	$ 93
Deferred Revenue, Additions	108
Deferred Revenue, Revenue Recognized	108
Accounts Payable and Accrued Liabilities [Member] | Other Deferred Revenue [Member]
Deferred Revenue Rollforward [Line Items]
Deferred Revenue	37
Other Noncurrent Liabilities [Member] | Other Deferred Revenue [Member]
Deferred Revenue Rollforward [Line Items]
Deferred Revenue	$ 56

XML

Restructuring (Narrative) (Detail) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018 USD ($)	Jun. 30, 2017 USD ($)	Jun. 30, 2018 USD ($) Employee	Jun. 30, 2017 USD ($)	Dec. 31, 2017 USD ($)
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	$ 4	$ 38	$ 10	$ 45
Restructuring Reserve	2		2		$ 4
Workforce Restructuring [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Charges			$ 7
Restructuring and Related Cost, Expected Number of Positions Eliminated | Employee			91
Restructuring and Related Cost, Number of Positions Eliminated | Employee			87
Restructuring and Related Cost, Expected Cost	11		$ 11
Payments for Restructuring			$ 6
T17 Restructuring [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Cost, Number of Positions Eliminated | Employee			673
Payments for Restructuring			$ 3
2018 Truck Restructuring [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Charges			2
Restructuring and Related Cost, Expected Cost	1		1
Payments for Restructuring			2
International [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Reserve	$ 2		2		$ 3
International [Member] | Workforce Restructuring [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Charges			5
Payments for Restructuring			4
International [Member] | T17 Restructuring [Member]
Restructuring Cost and Reserve [Line Items]
Payments for Restructuring			2
International [Member] | 2018 Truck Restructuring [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Charges			0
Payments for Restructuring			$ 0

XML

Restructuring (Summary Of Changes To Restructuring-Related Liabilities) (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Restructuring Reserve [Roll Forward]
Balance as of January 1, 2016			$ 4
Restructuring expense	$ (4)	$ (38)	(10)	$ (45)
Balance as of June 30, 2018	2		2
International
Restructuring Reserve [Roll Forward]
Balance as of January 1, 2016			1
Balance as of June 30, 2018	0		0
International [Member]
Restructuring Reserve [Roll Forward]
Balance as of January 1, 2016			3
Balance as of June 30, 2018	2		2
T17 Restructuring [Member]
Restructuring Reserve [Roll Forward]
Payment for Restructuring			(3)
T17 Restructuring [Member] | International
Restructuring Reserve [Roll Forward]
Payment for Restructuring			(1)
T17 Restructuring [Member] | International [Member]
Restructuring Reserve [Roll Forward]
Payment for Restructuring			(2)
Workforce Restructuring [Member]
Restructuring Reserve [Roll Forward]
Restructuring expense			(7)
Payment for Restructuring			(6)
Workforce Restructuring [Member] | International
Restructuring Reserve [Roll Forward]
Restructuring expense			(2)
Payment for Restructuring			(2)
Workforce Restructuring [Member] | International [Member]
Restructuring Reserve [Roll Forward]
Restructuring expense			(5)
Payment for Restructuring			(4)
2018 Truck Restructuring [Member]
Restructuring Reserve [Roll Forward]
Restructuring expense			(2)
Payment for Restructuring			(2)
2018 Truck Restructuring [Member] | International
Restructuring Reserve [Roll Forward]
Restructuring expense			(2)
Payment for Restructuring			(2)
2018 Truck Restructuring [Member] | International [Member]
Restructuring Reserve [Roll Forward]
Restructuring expense			0
Payment for Restructuring			0
Personnel Related
Restructuring Reserve [Roll Forward]
Balance as of January 1, 2016			4
Balance as of June 30, 2018	2		2
Personnel Related | T17 Restructuring [Member]
Restructuring Reserve [Roll Forward]
Payment for Restructuring			(3)
Personnel Related | Workforce Restructuring [Member]
Restructuring Reserve [Roll Forward]
Restructuring expense			(6)
Payment for Restructuring			(5)
Personnel Related | 2018 Truck Restructuring [Member]
Restructuring Reserve [Roll Forward]
Restructuring expense			0
Payment for Restructuring			0
Other Restructuring [Member]
Restructuring Reserve [Roll Forward]
Balance as of January 1, 2016			0
Balance as of June 30, 2018	$ 0		0
Other Restructuring [Member] | T17 Restructuring [Member]
Restructuring Reserve [Roll Forward]
Payment for Restructuring			0
Other Restructuring [Member] | Workforce Restructuring [Member]
Restructuring Reserve [Roll Forward]
Restructuring expense			(1)
Payment for Restructuring			(1)
Other Restructuring [Member] | 2018 Truck Restructuring [Member]
Restructuring Reserve [Roll Forward]
Restructuring expense			(2)
Payment for Restructuring			$ (2)

XML

Restructuring Other Related Charges (Details) $ in Millions	6 Months Ended
	Jun. 30, 2018 Employee	Jun. 30, 2017 USD ($)
Other Related Charges [Abstract]
Other Nonrecurring Expense		$ 7
Charges related to voluntary termination program, Expected Number of Positions Eliminated | Employee	358
Share-based Compensation Arrangement by Share-based Payment Award Accelerated Compensation Cost		2
Charges related to voluntary termination program		$ 14

XML

Earnings Per Share (Computation Of Basic And Diluted Earnings Per Share) (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Earnings Per Share [Abstract]
Net income (loss)	$ 26	$ 3	$ (61)	$ (104)
Basic weighted average shares outstanding	80.7	84.0	80.8	84.9
Weighted Average Number Diluted Shares Outstanding Adjustment	0.8	1.2	0.0	0.0
Weighted Average Number of Shares Outstanding, Diluted	81.5	85.2	80.8	84.9
Basic	$ 0.33	$ 0.04	$ (0.75)	$ (1.22)
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount			0.1	0.8
Earnings Per Share, Diluted	$ 0.32	$ 0.04	$ (0.75)	$ (1.22)
Restricted Stock Units (RSUs) [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	0.2	0.7	1.5	1.3

XML

Earnings Per Share Earnings Per Share (Details) - $ / shares shares in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Document Period End Date			Jun. 30, 2018
Basic weighted average shares outstanding	80.7	84.0	80.8	84.9
Basic	$ 0.33	$ 0.04	$ (0.75)	$ (1.22)
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount			0.1	0.8
Restricted Stock Units (RSUs) [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	0.2	0.7	1.5	1.3

XML

Other Investments (Details) - Greece [Member] - USD ($) $ in Millions	3 Months Ended
	Jun. 30, 2018	Mar. 31, 2018
Schedule of Equity Method Investments [Line Items]
Payments to Acquire Equity Method Investments	$ 18	$ 19
Equity Method Investment, Ownership Percentage	40.00%	20.00%
Equity Method Investment, Commitment to Purchase Ownership Percentage		20.00%
Commitment to Purchase within next 12 months [Member]
Schedule of Equity Method Investments [Line Items]
Equity Method Investment, Commitment to Purchase Ownership Percentage		10.00%
Commitment to Purchase in year 2 [Member]
Schedule of Equity Method Investments [Line Items]
Equity Method Investment, Commitment to Purchase Ownership Percentage		10.00%

XML

Other Current Assets (Details) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Other Current Assets Disclosure [Abstract]
Sales and use taxes	$ 402	$ 174
Prepaid expenses	252	196
Other	178	163
Other current assets	$ 832	$ 533

XML

Intangible Assets (Schedule Of Intangible Assets) (Detail) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Finite And Indefinite Lived Intangible Assets [Line Items]
Document Fiscal Year Focus	2018
Amortized Intangible Assets, Gross Carrying Amount	$ 597	$ 574
Amortized Intangible Assets, Accumulated Amortization	303	277
Amortized Intangible Assets, Net Carrying Amount	294	297
Unamortized Intangible Assets, Goodwill, Gross Carrying Amount	1,049	1,073
License agreements
Finite And Indefinite Lived Intangible Assets [Line Items]
Amortized Intangible Assets, Gross Carrying Amount	310	281
Amortized Intangible Assets, Accumulated Amortization	154	140
Amortized Intangible Assets, Net Carrying Amount	156	141
Customer relationships
Finite And Indefinite Lived Intangible Assets [Line Items]
Amortized Intangible Assets, Gross Carrying Amount	238	242
Amortized Intangible Assets, Accumulated Amortization	130	119
Amortized Intangible Assets, Net Carrying Amount	108	123
Other
Finite And Indefinite Lived Intangible Assets [Line Items]
Amortized Intangible Assets, Gross Carrying Amount	49	51
Amortized Intangible Assets, Accumulated Amortization	19	18
Amortized Intangible Assets, Net Carrying Amount	30	33
Goodwill (a)
Finite And Indefinite Lived Intangible Assets [Line Items]
Unamortized Intangible Assets, Goodwill, Gross Carrying Amount	1,049	1,073
Trademarks
Finite And Indefinite Lived Intangible Assets [Line Items]
Unamortized Intangible Assets, Trademarks, Gross Carrying Amount	$ 549	$ 553

XML

Intangible Assets (Narrative) (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Finite-Lived Intangible Assets [Line Items]
Document Period End Date			Jun. 30, 2018
Amortization expense relating to all intangible assets	$ 19	$ 16	$ 33	$ 31
Amortization expense for remainder of the year	37		$ 37
Document Fiscal Year Focus			2018
Intangible assets amortization expense, year one	50		$ 50
Intangible assets amortization expense, year two	43		43
Intangible assets amortization expense, year three	30		30
Intangible assets amortization expense, year four	24		24
Intangible assets amortization expense, year five	$ 21		$ 21

XML

Vehicle Rental Activities (Components Of The Company's Vehicles) (Detail) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2017
Vehicle Rental Activities [Abstract]
Rental vehicles	$ 15,188	$ 11,652
Less: Accumulated depreciation	(1,629)	(1,652)
Rental Vehicles Net, Total	13,559	10,000
Vehicles held for sale	308	626
Vehicles, net	13,867	$ 10,626
Accounts Payable, Other, Current	856		$ 658
Other Receivables	$ 248		$ 235

XML

Vehicle Rental Activities (Components Of Vehicle Depreciation And Lease Charges) (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Vehicle Rental Activities [Abstract]
Depreciation expense	$ 536	$ 516	$ 996	$ 953
Lease charges	64	54	120	97
(Gain) loss on sale of vehicles, net	(9)	27	(10)	51
Vehicle depreciation and lease charges, net	$ 591	$ 597	$ 1,106	$ 1,101

XML

Income Taxes Income Taxes (Narrative) (Details)	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Income Taxes [Abstract]
Effective Income Tax Rate Reconciliation, Percent	33.00%	32.50%
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	21.00%	35.00%

XML

Accounts Payable and Other Current Liabilities (Details) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Accounts Payable and Other Current Liabilities [Abstract]
Accounts payable	$ 412	$ 359
Accrued sales and use taxes	262	218
Accrued marketing and commissions, current	197	190
Employee-related Liabilities, Current	176	176
Deferred Revenue, Current	247	135
Public liability and property damage insurance liabilities, current	144	145
Accrued Insurance, Current	102	103
Other	292	293
Accounts payable and other current liabilities	$ 1,832	$ 1,619

XML

Long-Term Debt And Borrowing Arrangements (Schedule Of Long-Term Debt) (Detail) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
Document Fiscal Year Focus	2018
Other	$ 43	$ 49
Long-term Debt, Current Maturities	24	26
Long-term debt	$ 3,544	3,573
Five and One over Eight Senior Notes [Member] | Long Term Borrowings [Member]
Debt Instrument [Line Items]
Debt instrument stated interest percentage	5.125%
Five And One Over Two Senior Notes [Member] | Long Term Borrowings [Member]
Debt Instrument [Line Items]
Debt instrument stated interest percentage	5.50%
Six And Three Over Eight Senior Notes [Member] | Long Term Borrowings [Member]
Debt Instrument [Line Items]
Debt instrument stated interest percentage	6.375%
Four and One over Eight Euro-Denominated Senior Notes [Member] | Long Term Borrowings [Member]
Debt Instrument [Line Items]
Debt instrument stated interest percentage	4.125%
Five And One Over Four Senior Notes [Member] | Long Term Borrowings [Member]
Debt Instrument [Line Items]
Debt instrument stated interest percentage	5.25%
Four and One over Two Euro-Denominated Senior Notes [Member] | Long Term Borrowings [Member]
Debt Instrument [Line Items]
Debt instrument stated interest percentage	4.50%
Senior Notes [Member] | Five and One over Eight Senior Notes [Member]
Debt Instrument [Line Items]
Long-term debt	$ 400	400
Debt Instrument, Maturity Date, Description	June 2022
Senior Notes [Member] | Five And One Over Two Senior Notes [Member]
Debt Instrument [Line Items]
Long-term debt	$ 675	675
Debt Instrument, Maturity Date, Description	April 2023
Senior Notes [Member] | Six And Three Over Eight Senior Notes [Member]
Debt Instrument [Line Items]
Long-term debt	$ 350	350
Debt Instrument, Maturity Date, Description	April 2024
Senior Notes [Member] | Four and One over Eight Euro-Denominated Senior Notes [Member]
Debt Instrument [Line Items]
Long-term debt	$ 351	360
Debt Instrument, Maturity Date, Description	November 2024
Senior Notes [Member] | Five And One Over Four Senior Notes [Member]
Debt Instrument [Line Items]
Long-term debt	$ 375	375
Debt Instrument, Maturity Date, Description	March 2025
Senior Notes [Member] | Four and One over Two Euro-Denominated Senior Notes [Member]
Debt Instrument [Line Items]
Long-term debt	$ 292	300
Debt Instrument, Maturity Date, Description	May 2025
Loans Payable [Member] | Floating Rate Term Loan Due March Two Thousand Twenty Two [Member]
Debt Instrument [Line Items]
Long-term debt	$ 0	1,136
Debt Instrument, Maturity Date, Description	March 2022
Loans Payable [Member] | Floating Rate Term Loan Due February Two Thousand Twenty Five [Member]
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate	3.79%
Long-term debt	$ 1,128	0
Debt Instrument, Maturity Date, Description	February 2025
Debt Instrument, Description of Variable Rate Basis	200 basis points
Percentage Of Margin Aggregate Interest Rate	4.34%
Senior Notes and Loans Payable [Member]
Debt Instrument [Line Items]
Deferred Finance Costs, Net	$ (46)	(46)
Long-term Debt	$ 3,568	$ 3,599

XML

Long-Term Debt And Borrowing Arrangements (Schedule Of Long-Term Debt) (Detail Section)	6 Months Ended
	Jun. 30, 2018 USD ($)
Floating Rate Term Loan Due March Two Thousand Nineteen [Member]
Debt Instrument [Line Items]
Debt Instrument, Description of Variable Rate Basis	200 basis points
Long Term Borrowings [Member] | Five And One Over Four Senior Notes [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	5.25%
Long Term Borrowings [Member] | Five and One over Eight Senior Notes [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	5.125%
Long Term Borrowings [Member] | Five And One Over Two Senior Notes [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	5.50%
Long Term Borrowings [Member] | Six And Three Over Eight Senior Notes [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	6.375%
Loans Payable [Member] | Floating Rate Term Loan Due February Two Thousand Twenty Five [Member]
Debt Instrument [Line Items]
Debt Instrument, Description of Variable Rate Basis	200 basis points
Percentage Of Margin Aggregate Interest Rate	4.34%
Debt Instrument, Basis Spread on Variable Rate	3.79%
Derivative, Amount of Hedged Item	$ 700,000,000
Bank Overdraft [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Interest Rate During Period	3.22%

XML

Long-Term Debt And Borrowing Arrangements (Narrative) (Detail) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
Document Period End Date		Jun. 30, 2018
Other Long-term Debt	$ 43	$ 43	$ 49
Uncommitted Credit Facility [Member] | Minimum [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Interest Rate During Period	0.74%
Uncommitted Credit Facility [Member] | Maximum [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Interest Rate During Period	1.54%
Four and One over Two Euro-Denominated Senior Notes [Member] | Senior Notes [Member]
Debt Instrument [Line Items]
Debt Instrument, Maturity Date, Description		May 2025
Long-term Debt, Gross	$ 292	$ 292	300
Six And Three Over Eight Senior Notes [Member] | Senior Notes [Member]
Debt Instrument [Line Items]
Debt Instrument, Maturity Date, Description		April 2024
Long-term Debt, Gross	350	$ 350	350
Five and One over Eight Senior Notes [Member] | Senior Notes [Member]
Debt Instrument [Line Items]
Debt Instrument, Maturity Date, Description		June 2022
Long-term Debt, Gross	400	$ 400	400
Five And One Over Two Senior Notes [Member] | Senior Notes [Member]
Debt Instrument [Line Items]
Debt Instrument, Maturity Date, Description		April 2023
Long-term Debt, Gross	675	$ 675	675
Floating Rate Term Loan Due March Two Thousand Twenty Two [Member] | Loans Payable [Member]
Debt Instrument [Line Items]
Debt Instrument, Maturity Date, Description		March 2022
Long-term Debt, Gross	0	$ 0	1,136
Four and One over Eight Euro-Denominated Senior Notes [Member] | Senior Notes [Member]
Debt Instrument [Line Items]
Debt Instrument, Maturity Date, Description		November 2024
Long-term Debt, Gross	$ 351	$ 351	$ 360

XML

Long-Term Debt And Borrowing Arrangements (Schedule Of Committed Credit Facilities) (Detail) $ in Millions	Jun. 30, 2018 USD ($)
Revolving Credit Facility Maturing Two Thousand Sixteen [Member]
Line of Credit Facility [Line Items]
Total Capacity	$ 1,800
Outstanding Borrowings	0
Letters of Credit Issued	1,324
Available Capacity	476
Other Facilities [Member]
Line of Credit Facility [Line Items]
Total Capacity	2
Outstanding Borrowings	2
Letters of Credit Issued	0
Available Capacity	$ 0

XML

Long-Term Debt And Borrowing Arrangements (Schedule Of Committed Credit Facilities) (Detail Section) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2018 USD ($)	Jun. 30, 2018 USD ($)
Line of Credit Facility [Line Items]
Amounts drawn under uncommitted credit facilities	$ 1	$ 1
Bank Overdraft [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Interest Rate During Period		3.22%
Minimum [Member] | Uncommitted Credit Facility [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Interest Rate During Period	0.74%
Maximum [Member] | Uncommitted Credit Facility [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Interest Rate During Period	1.54%

XML

Debt Under Vehicle Programs And Borrowing Arrangements (Schedule Of Debt Under Vehicle Programs) (Detail) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Debt Under Vehicle Programs And Borrowing Arrangements [Line Items]
Document Period End Date	Jun. 30, 2018
Debt under vehicle programs	$ 11,776	$ 9,221
Newly Issued European Credit Facility	150
Debt Due To Avis Budget Rental Car Funding (Member)
Debt Under Vehicle Programs And Borrowing Arrangements [Line Items]
Asset-Backed Securities, at Carrying Value	$ 400
Debt Instrument, Maturity Date	Sep. 01, 2023
Leasing Vehicles And Related Assets Pledged As Collateralized Debt	$ 9,800
Debt under vehicle programs	8,298	6,516
Deferred Finance Costs, Net	$ (33)	(36)
Debt, Weighted Average Interest Rate	4.00%
Americas Debt Borrowings [Member]
Debt Under Vehicle Programs And Borrowing Arrangements [Line Items]
Leasing Vehicles And Related Assets Pledged As Collateralized Debt	$ 1,300
Debt under vehicle programs	912	660
International Debt Borrowings [Domain]
Debt Under Vehicle Programs And Borrowing Arrangements [Line Items]
Leasing Vehicles And Related Assets Pledged As Collateralized Debt	2,600
Debt under vehicle programs	2,399	1,942
International Capital Leases [Domain]
Debt Under Vehicle Programs And Borrowing Arrangements [Line Items]
Leasing Vehicles And Related Assets Pledged As Collateralized Debt	200
Debt under vehicle programs	211	146
Other (Member)
Debt Under Vehicle Programs And Borrowing Arrangements [Line Items]
Debt under vehicle programs	4	1
Debt Under Vehicle Programs [Member]
Debt Under Vehicle Programs And Borrowing Arrangements [Line Items]
Deferred Finance Costs, Net	$ (48)	$ (44)

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Debt Under Vehicle Programs And Borrowing Arrangements (Schedule Of Contractual Maturities) (Detail) $ in Millions	Jun. 30, 2018 USD ($)
Debt Under Vehicle Programs And Borrowing Arrangements [Line Items]
Vehicle Program Debt Amount Outstanding	$ 11,824
Vehicle backed debt [Member]
Debt Under Vehicle Programs And Borrowing Arrangements [Line Items]
Within 1 year	1,816
Between 1 and 2 years	4,703
Between 2 and 3 years	2,997
Between 3 and 4 years	724
Between 4 and 5 years	1,156
Thereafter	428
Vehicle Program Debt Amount Outstanding	$ 11,824

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Debt Under Vehicle Programs And Borrowing Arrangements (Schedule Of Available Funding Under The Vehicle Programs) (Detail) $ in Millions	Jun. 30, 2018 USD ($)
Debt Under Vehicle Programs And Borrowing Arrangements [Line Items]
Total Capacity (a)	$ 13,275
Outstanding Borrowings (b)	11,824
Available Capacity	1,451
Debt Due To Avis Budget Rental Car Funding (Member)
Debt Under Vehicle Programs And Borrowing Arrangements [Line Items]
Total Capacity (a)	8,988
Outstanding Borrowings (b)	8,298
Available Capacity	690
Leasing Vehicles And Related Assets Pledged As Collateralized Debt	9,800
Americas Debt Borrowings [Member]
Debt Under Vehicle Programs And Borrowing Arrangements [Line Items]
Total Capacity (a)	971
Outstanding Borrowings (b)	912
Available Capacity	59
Leasing Vehicles And Related Assets Pledged As Collateralized Debt	1,300
International Debt Borrowings [Domain]
Debt Under Vehicle Programs And Borrowing Arrangements [Line Items]
Total Capacity (a)	3,081
Outstanding Borrowings (b)	2,399
Available Capacity	682
Leasing Vehicles And Related Assets Pledged As Collateralized Debt	2,600
International Capital Leases [Domain]
Debt Under Vehicle Programs And Borrowing Arrangements [Line Items]
Total Capacity (a)	231
Outstanding Borrowings (b)	211
Available Capacity	20
Leasing Vehicles And Related Assets Pledged As Collateralized Debt	200
Other (Member)
Debt Under Vehicle Programs And Borrowing Arrangements [Line Items]
Total Capacity (a)	4
Outstanding Borrowings (b)	4
Available Capacity	$ 0

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Debt Under Vehicle Programs and Borrowing Arrangements Debt Under Vehicle Programs and Borrowing Arrangements (Details) - Debt Due To Avis Budget Rental Car Funding (Member) $ in Millions	Jun. 30, 2018 USD ($)
Debt Under Vehicle Programs And Borrowing Arrangements [Line Items]
Asset-Backed Securities, at Carrying Value	$ 400
Debt, Weighted Average Interest Rate	4.00%

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Commitments And Contingencies (Narrative) (Detail) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Schedule Of Commitments And Contingencies [Line Items]
Loss Contingency Accrual	$ 12
Loss Contingency, Range of Possible Loss, Portion Not Accrued	$ 50
Document Period End Date	Jun. 30, 2018
Purchase obligation over the next twelve months	$ 2,800
Other Receivables	248	$ 235
Realogy [Member]
Schedule Of Commitments And Contingencies [Line Items]
Other Receivables	23
Wyndham [Member]
Schedule Of Commitments And Contingencies [Line Items]
Other Receivables	$ 14

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Stockholders' Equity (Narrative) (Detail) - USD ($) shares in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Aug. 01, 2018
Stockholders Equity [Line Items]
Currency translation adjustments (net of tax of $(10), $17, $(5) and $20, respectively)	$ (54,000,000)	$ 48,000,000	$ (53,000,000)	$ 73,000,000
Proceeds from Issuance of Preferred Stock, Preference Stock, and Warrants			$ 100
Document Period End Date			Jun. 30, 2018
Document Fiscal Year Focus			2018
Other Comprehensive Income Unrealized Gain Loss On Cash Flow Hedges Arising During Period Net Of Tax			$ 8,000,000	(2,000,000)
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax			0	1,000,000
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax			8,000,000	$ (1,000,000)
Stock Repurchase Program, Authorized Amount	1,500,000,000		$ 1,500,000,000
Stock Repurchased During Period, Shares			1.6	3.4
Stock Repurchased During Period, Value			$ 67,000,000	$ 100,000,000
Stock Repurchase Program, Remaining Authorized Repurchase Amount	33,000,000		33,000,000
Selling, General and Administrative Expenses [Member]
Stockholders Equity [Line Items]
Other Comprehensive (Income) Loss, Defined Benefit Plan, Reclassification Adjustment from AOCI, before Tax	2,000,000	2,000,000	4,000,000	4,000,000
Other Comprehensive (Income) Loss, Defined Benefit Plan, Reclassification Adjustment from AOCI, after Tax	$ 1,000,000	$ 2,000,000	$ 2,000,000	$ 3,000,000
Subsequent Event [Member]
Stockholders Equity [Line Items]
Stock Repurchase Program, Authorized Amount					$ 250,000,000

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Stockholders' Equity (Accumulated Other Comprehensive Income) (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Stockholders Equity [Line Items]
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets					$ (6)
Document Period End Date			Jun. 30, 2018
Currency Translation Adjustments, Balance			$ 71	$ (39)
Net Unrealized Gains (Losses) on Cash Flow Hedges, Balance	$ 14	$ 1	14	1
Net Unrealized Gains on Available- For-Sale Securities, Balance			2	1
Currency Translation Adjustments, Balance			(102)	(118)
Accumulated Other Comprehensive Income, Balance			(24)	(154)
Currency Translation Adjustments, Current period change	(54)	48	(53)	73
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax	2	(2)	8	(1)
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax	(2)	(1)	(3)	(3)
Other comprehensive income (loss)			(42)	76
Currency Translation Adjustments, Balance	25	34	25	34
Net Unrealized Gains (Losses) on Cash Flow Hedges, Balance			5	2
Net Unrealized Gains on Available- For-Sale Securities, Balance	0	2	0	2
Currency Translation Adjustments, Balance	(111)	(115)	(111)	(115)
Accumulated Other Comprehensive Income, Balance	(72)	(78)	(72)	(78)
Derivatives used in Net Investment Hedge, Net of Tax	53		53
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax, Portion Attributable to Parent			(53)	73
Other Comprehensive Income Unrealized Gain Loss On Cash Flow Hedges Arising During Period Net Of Tax			8	(2)
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax			8	(1)
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax	0	1	0	1
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net (Gain) Loss, Net of Tax			2	3
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax			(44)	72
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax			2	4
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Net of Tax			0	0
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax			0	0
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax			0	(1)
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, before Reclassification Adjustments, Net of Tax			0	1
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, after Tax			1	0
Corporate Interest Expense [Member]
Stockholders Equity [Line Items]
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax		1		2
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax		0		(1)
Selling, General and Administrative Expenses [Member]
Stockholders Equity [Line Items]
Other Comprehensive (Income) Loss, Defined Benefit Plan, Reclassification Adjustment from AOCI, before Tax	2	2	4	4
Other Comprehensive (Income) Loss, Defined Benefit Plan, Reclassification Adjustment from AOCI, after Tax	1	2	2	3
Accumulated Foreign Currency Adjustment Attributable to Parent [Member]
Stockholders Equity [Line Items]
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets					7
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member]
Stockholders Equity [Line Items]
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets					1
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member]
Stockholders Equity [Line Items]
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets					(2)
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member]
Stockholders Equity [Line Items]
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets					$ (12)
Including Beginning Balance Adjustment due to Cumulative Effect of Accounting Change [Member]
Stockholders Equity [Line Items]
Currency Translation Adjustments, Balance			78
Net Unrealized Gains on Available- For-Sale Securities, Balance			0
Currency Translation Adjustments, Balance			(114)
Accumulated Other Comprehensive Income, Balance			(30)
Other comprehensive income (loss)	$ (50)	$ 48	(42)	$ 76
Net Unrealized Gains (Losses) on Cash Flow Hedges, Balance			$ 6

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Stockholders' Equity (Components Of Other Comprehensive Income) (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Equity [Abstract]
Net income (loss)	$ 26	$ 3	$ (61)	$ (104)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Document Fiscal Year Focus			2018
Currency translation adjustments (net of tax of $(10), $17, $(5) and $20, respectively)	(54)	48	$ (53)	73
Net unrealized gain (loss) on available-for-sale securities (net of tax of $0 in each period)	0	1	0	1
Net unrealized gain (loss) on cash flow hedges (net of tax of $(1), $1, $(3) and $1, respectively)	2	(2)	8	(1)
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax	2	1	3	3
Other comprehensive income (loss)			(42)	76
Total comprehensive income (loss)	(24)	51	$ (103)	(28)
Document Period End Date			Jun. 30, 2018
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax			$ 0	1
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax	(10)	17	(5)	20
Other Comprehensive Income (Loss), Available-for-sale Securities, Tax	0	0	0	0
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax	(1)	1	(3)	1
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, Tax	0	0	(1)	(1)
Corporate Interest Expense [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax		1		2
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax		0		1
Selling, General and Administrative Expenses [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other Comprehensive (Income) Loss, Defined Benefit Plan, Reclassification Adjustment from AOCI, before Tax	2	2	4	4
Other Comprehensive (Income) Loss, Defined Benefit Plan, Reclassification Adjustment from AOCI, after Tax	1	2	2	3
Including Beginning Balance Adjustment due to Cumulative Effect of Accounting Change [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other comprehensive income (loss)	$ (50)	$ 48	$ (42)	$ 76

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Stock-Based Compensation (Narrative) (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 7	$ 4	$ 12	$ 5
Stock-based compensation expense (net of tax)	$ 5	$ 3	$ 9	$ 3
Document Period End Date			Jun. 30, 2018
Document Fiscal Year Focus			2018

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Stock-Based Compensation (Stock Based Compensation Activity) (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	6 Months Ended		12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Document Period End Date	Jun. 30, 2018
Number of Options, Balance	87		273
Options outstanding, intrinsic value	$ 3		$ 10
Stock Issued During Period, Value, Restricted Stock Award, Gross	13	$ 22
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized	$ 41
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term	7 months		1 year 8 months
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Expected to Vest, Weighted Average Remaining Contractual Term	1 year 4 months
Performance-Based and Market-Based RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Outstanding, Weighted Average Remaining Contractual Terms	1 year 6 months
Weighted Average Grant Price, Balance	$ 33.06
Weighted Average Grant Price, Granted at fair market value	48.72
Weighted Average Grant Price, Vested/exercised	0.00
Weighted Average Grant Price, Canceled	53.36
Weighted Average Grant Price, Balance	$ 35.17		$ 33.06
Number of RSUs, Balance	994
Number of RSUs, Granted at fair market value	349
Number of RSUs, Vested/exercised	0
Number of RSUs, Canceled	(145)
Number of RSUs, Balance	1,198		994
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Outstanding	$ 39
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Expected to Vest, Number of Shares Outstanding	266
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Expected to Vest, Weighted Average Grant Date Fair Value	$ 44.49
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Expected to Vest, Weighted Average Remaining Contractual Term	2 years 4 months
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Expected to Vest	$ 9
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted Average Grant Price, Balance	$ 34.54
Weighted Average Grant Price, Granted at fair market value	48.66	$ 34.41
Weighted Average Grant Price, Vested/exercised	35.14
Weighted Average Grant Price, Canceled	$ 34.98
Weighted Average Grant Price, Balance			$ 34.54
Number of RSUs, Balance	1,160
Number of RSUs, Granted at fair market value	317
Number of RSUs, Vested/exercised	(359)
Number of RSUs, Canceled	(39)
Number of RSUs, Balance			1,160
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Expected to Vest, Number of Shares Outstanding	1,079
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Expected to Vest, Weighted Average Grant Date Fair Value	$ 38.47
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Expected to Vest, Weighted Average Remaining Contractual Term	1 year 1 month
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Expected to Vest	$ 35

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Stock-Based Compensation (Summary Of Share Based Compensation Shares Authorized Under Stock Option Plans By Exercise Price Range) (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price	$ 0.00
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	87	273
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price	$ 0.79	$ 7.08
Share-based Compensation Arrangements by Share-based Payment Award, Options, Forfeitures in Period, Weighted Average Exercise Price	$ 0.00
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value	$ 7
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period	0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period	(186)
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price	$ 9.99
Options outstanding, intrinsic value	$ 3	$ 10
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term	7 months	1 year 8 months
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures	0

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Financial Instruments (Schedule Of Carrying Amounts And Estimated Fair Values) (Detail) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Current Maturities	$ 24	$ 26
Long-term Debt, Excluding Current Maturities	3,544	3,573
Debt due to Avis Budget Rental Car Funding (AESOP) LLC—related party	8,265	6,480
Reported Value Measurement [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Current Maturities		26
Long-term Debt, Excluding Current Maturities		3,573
Debt due to Avis Budget Rental Car Funding (AESOP) LLC—related party		6,480
Vehicle Backed Debt	3,506	2,740
Debt Under Vehicle Programs Interest Rate Swaps And Interest Rate Contracts	5	1
Estimate of Fair Value Measurement [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Current Maturities	24	26
Long-term Debt, Excluding Current Maturities	3,539	3,677
Debt due to Avis Budget Rental Car Funding (AESOP) LLC—related party	8,270	6,537
Vehicle Backed Debt	3,520	2,745
Debt Under Vehicle Programs Interest Rate Swaps And Interest Rate Contracts	$ 5	$ 1

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Financial Instruments (Narrative) (Detail) gal in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018 USD ($) gal	Jun. 30, 2017 USD ($)	Jun. 30, 2018 USD ($) gal	Jun. 30, 2017 USD ($)
Schedule of Cost-method Investments [Line Items]
Document Period End Date			Jun. 30, 2018
Interest Rate Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months, Net	$ 5		$ 5
Derivative Instruments, Gain (Loss) Recognized in Income, Net	56	$ (50)	40	$ (67)
Interest Rate Caps [Member]
Schedule of Cost-method Investments [Line Items]
Absolute notional values of derivative instruments	8,934		8,934
Interest Rate Caps [Member] | Subsidiaries [Member]
Schedule of Cost-method Investments [Line Items]
Absolute notional values of derivative instruments	3,000		3,000
Interest Rate Swaps [Member]
Schedule of Cost-method Investments [Line Items]
Absolute notional values of derivative instruments	1,000		1,000
Currency Swap [Member]
Schedule of Cost-method Investments [Line Items]
Absolute notional values of derivative instruments	$ 1,276		$ 1,276
Commodity Contracts [Member]
Schedule of Cost-method Investments [Line Items]
Units Of Gasoline | gal	9		9
Purchase [Member]
Schedule of Cost-method Investments [Line Items]
Absolute notional values of derivative instruments	$ 3,000		$ 3,000
Sold [Member]
Schedule of Cost-method Investments [Line Items]
Absolute notional values of derivative instruments	5,900		5,900
Not Designated As Hedging Instruments [Member] | Commodity Contracts [Member]
Schedule of Cost-method Investments [Line Items]
Derivative Instruments, Gain (Loss) Recognized in Income, Net	1	(1)	1	(2)
Interest Expense [Member]
Schedule of Cost-method Investments [Line Items]
Derivative Instruments, Gain (Loss) Recognized in Income, Net	20	11	7	18
Operating Expense [Member]
Schedule of Cost-method Investments [Line Items]
Derivative Instruments, Gain (Loss) Recognized in Income, Net	$ 8	$ 10	$ 12	$ 15

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Financial Instruments (Fair Values Of Derivatives Instruments) (Detail) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2017
Schedule of Cost-method Investments [Line Items]
Fair Value, Asset Derivatives	$ 35	$ 11
Fair Value, Liability Derivatives	10	8
Designated As Hedging Instruments [Member] | Interest Rate Swaps [Member]
Schedule of Cost-method Investments [Line Items]
Fair Value, Asset Derivatives	19	8
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	14	3
Fair Value, Liability Derivatives	5	7
Not Designated As Hedging Instruments [Member] | Interest Rate Contracts [Member]
Schedule of Cost-method Investments [Line Items]
Fair Value, Asset Derivatives	1	0
Fair Value, Liability Derivatives	$ 5	1
Not Designated As Hedging Instruments [Member] | Commodity Contracts [Member]
Schedule of Cost-method Investments [Line Items]
Fair Value, Asset Derivatives		0	$ 1
Fair Value, Liability Derivatives		$ 0	$ 0

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Financial Instruments (Schedule Of Effect Of Derivatives Recognized) (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Schedule of Cost-method Investments [Line Items]
Document Period End Date			Jun. 30, 2018
Long-term Debt, Current Maturities	$ 24		$ 24		$ 26
Derivatives not designated as hedging instruments	56	$ (50)	40	$ (67)
Debt due to Avis Budget Rental Car Funding (AESOP) LLC—related party	8,265		8,265		$ 6,480
Interest Rate Swaps [Member]
Schedule of Cost-method Investments [Line Items]
Derivative, Notional Amount	1,000		1,000
Designated As Hedging Instruments [Member] | Interest Rate Swaps [Member]
Schedule of Cost-method Investments [Line Items]
Interest rate swaps	2	(2)	8	(1)
Designated As Hedging Instruments [Member] | Foreign Exchange Contracts [Member]
Schedule of Cost-method Investments [Line Items]
Interest rate swaps	26	(26)	13	(31)
Not Designated As Hedging Instruments [Member] | Foreign Exchange Contracts [Member]
Schedule of Cost-method Investments [Line Items]
Derivatives not designated as hedging instruments	28	(21)	19	(33)
Not Designated As Hedging Instruments [Member] | Commodity Contracts [Member]
Schedule of Cost-method Investments [Line Items]
Derivatives not designated as hedging instruments	1	(1)	1	(2)
Not Designated As Hedging Instruments [Member] | Interest Rate Contracts [Member]
Schedule of Cost-method Investments [Line Items]
Derivatives not designated as hedging instruments	(1)	0	(1)	0
Operating Expense [Member]
Schedule of Cost-method Investments [Line Items]
Derivatives not designated as hedging instruments	8	10	12	15
Interest Expense [Member]
Schedule of Cost-method Investments [Line Items]
Derivatives not designated as hedging instruments	$ 20	$ 11	$ 7	$ 18

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Segment Information (Summary Of Segments Information) (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Segment Reporting Information [Line Items]
Assets Under Vehicle Programs	$ 14,726		$ 14,726		$ 11,879
Document Fiscal Year Focus			2018
Revenues	2,328	$ 2,238	$ 4,296	$ 4,077
Revenues	2,328	2,238	4,296	4,077
Adjusted EBITDA	161	140	163	113
Non-vehicle related depreciation and amortization	67	65	128	128
Interest expense	49	48	95	97
Early extinguishment of debt	0	0	(5)	(3)
Non-operational charges related to shareholder activist activity			9	0
Restructuring Charges	4	38	10	45
Transaction-related costs, net	3	5	7	8
Charges for legal matter	0	(27)	0	(14)
Income before income taxes	38	11	(91)	(154)
Americas
Segment Reporting Information [Line Items]
Assets Under Vehicle Programs	11,000		11,000		9,000
Adjusted EBITDA	107	96	122	76
International [Member]
Segment Reporting Information [Line Items]
Assets Under Vehicle Programs	3,700		3,700		$ 2,900
Revenues	738	673	1,358	1,198
Adjusted EBITDA	71	59	74	66
Corporate and Other [Member]
Segment Reporting Information [Line Items]
Revenues	0	0	0	0
Adjusted EBITDA	(17)	(15)	(33)	(29)
Americas
Segment Reporting Information [Line Items]
Revenues	$ 1,590	$ 1,565	$ 2,938	$ 2,879

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Segment Information (Narrative) (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Segment Reporting Information [Line Items]
Document Period End Date			Jun. 30, 2018
Revenues	$ 2,328	$ 2,238	$ 4,296	$ 4,077
Adjusted EBITDA	161	140	163	113
Non Vehicle Related Depreciation And Amortization	67	65	128	128
Restructuring and other related charges	4	38	10	45
Income (loss) before income taxes	38	11	(91)	(154)
Assets Under Vehicle Programs	14,726		14,726		$ 11,879
Total assets exclusive of assets under vehicle programs	6,193		6,193		5,820
Americas
Segment Reporting Information [Line Items]
Adjusted EBITDA	107	96	122	76
Assets Under Vehicle Programs	11,000		11,000		9,000
International [Member]
Segment Reporting Information [Line Items]
Revenues	738	673	1,358	1,198
Adjusted EBITDA	71	59	74	66
Assets Under Vehicle Programs	3,700		3,700		$ 2,900
Corporate and Other [Member]
Segment Reporting Information [Line Items]
Revenues	0	0	0	0
Adjusted EBITDA	$ (17)	$ (15)	$ (33)	$ (29)

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Guarantor And Non-Guarantor Consolidating Condensed Financial Statements (Consolidating Condensed Statements Of Comprehensive Income) (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenues
Revenues	$ 2,328	$ 2,238	$ 4,296	$ 4,077
Expenses
Operating	1,175	1,108	2,267	2,157
Vehicle depreciation and lease charges, net	591	597	1,106	1,101
Selling, general and administrative	321	293	617	555
Vehicle interest, net	80	73	152	137
Non-vehicle related depreciation and amortization	67	65	128	128
Interest expense	49	48	95	97
Intercompany interest expense (income)	0	0	0	0
Early extinguishment of debt	0	0	5	3
Restructuring and other related charges	4	38	10	45
Transaction-related costs, net	3	5	7	8
Total expenses	2,290	2,227	4,387	4,231
Income before income taxes	38	11	(91)	(154)
Provision for (benefit from) income taxes	(12)	(8)	30	50
Equity in earnings (loss) of subsidiaries	0	0	0	0
Net income (loss)	26	3	(61)	(104)
Comprehensive income (loss)	24	(51)	103	28
Eliminations [Member]
Revenues
Revenues	(657)	(663)	(1,232)	(1,248)
Expenses
Operating	0	0	0	0
Vehicle depreciation and lease charges, net	(596)	(609)	(1,121)	(1,144)
Selling, general and administrative	0	0	0	0
Vehicle interest, net	(61)	(54)	(111)	(104)
Non-vehicle related depreciation and amortization	0	0	0	0
Interest expense	0	0	0	0
Intercompany interest expense (income)	0	0	0	0
Early extinguishment of debt		0	0	0
Restructuring and other related charges	0	0	0	0
Transaction-related costs, net	0	0	0	0
Total expenses	(657)	(663)	(1,232)	(1,248)
Income before income taxes	0	0	0	0
Provision for (benefit from) income taxes	0	0	0	0
Equity in earnings (loss) of subsidiaries	(283)	(341)	(367)	(349)
Net income (loss)	(283)	(341)	(367)	(349)
Comprehensive income (loss)	128	490	222	578
Parent Company [Member]
Revenues
Revenues	0	0	0	0
Expenses
Operating	1	1	2	2
Vehicle depreciation and lease charges, net	0	0	0	0
Selling, general and administrative	10	10	28	20
Vehicle interest, net	0	0	0	0
Non-vehicle related depreciation and amortization	0	0	0	0
Interest expense	0	0	0	0
Intercompany interest expense (income)	(3)	(3)	(6)	(6)
Early extinguishment of debt		0	0	0
Restructuring and other related charges	0	0	0	0
Transaction-related costs, net	0	0	0	0
Total expenses	8	8	24	16
Income before income taxes	(8)	(8)	(24)	(16)
Provision for (benefit from) income taxes	5	2	11	4
Equity in earnings (loss) of subsidiaries	29	9	(48)	(92)
Net income (loss)	26	3	(61)	(104)
Comprehensive income (loss)	24	(51)	103	28
Subsidiaries [Member]
Revenues
Revenues	0	0	0	0
Expenses
Operating	(3)	9	1	13
Vehicle depreciation and lease charges, net	0	0	0	0
Selling, general and administrative	3	2	6	4
Vehicle interest, net	0	0	0	0
Non-vehicle related depreciation and amortization	1	1	1	1
Interest expense	39	83	78	129
Intercompany interest expense (income)	(31)	5	(9)	6
Early extinguishment of debt		1	5	4
Restructuring and other related charges	0	2	0	2
Transaction-related costs, net	1	0	1	0
Total expenses	10	103	83	159
Income before income taxes	(10)	(103)	(83)	(159)
Provision for (benefit from) income taxes	3	39	22	62
Equity in earnings (loss) of subsidiaries	36	73	13	5
Net income (loss)	29	9	(48)	(92)
Comprehensive income (loss)	21	(58)	90	16
Guarantor Subsidiaries [Member]
Revenues
Revenues	1,395	1,371	2,579	2,524
Expenses
Operating	677	644	1,298	1,284
Vehicle depreciation and lease charges, net	605	614	1,141	1,160
Selling, general and administrative	176	158	331	311
Vehicle interest, net	61	52	113	97
Non-vehicle related depreciation and amortization	36	40	72	80
Interest expense	1	0	2	1
Intercompany interest expense (income)	5	5	11	11
Early extinguishment of debt		0	0	0
Restructuring and other related charges	1	33	4	39
Transaction-related costs, net	1	0	1	0
Total expenses	1,563	1,546	2,973	2,983
Income before income taxes	(168)	(175)	(394)	(459)
Provision for (benefit from) income taxes	(14)	(11)	5	28
Equity in earnings (loss) of subsidiaries	218	259	402	436
Net income (loss)	36	73	13	5
Comprehensive income (loss)	16	(123)	37	(82)
Non-Guarantor Subsidiaries [Member]
Revenues
Revenues	1,590	1,530	2,949	2,801
Expenses
Operating	500	454	966	858
Vehicle depreciation and lease charges, net	582	592	1,086	1,085
Selling, general and administrative	132	123	252	220
Vehicle interest, net	80	75	150	144
Non-vehicle related depreciation and amortization	30	24	55	47
Interest expense	9	(35)	15	(33)
Intercompany interest expense (income)	29	(7)	4	(11)
Early extinguishment of debt		(1)	0	(1)
Restructuring and other related charges	3	3	6	4
Transaction-related costs, net	1	5	5	8
Total expenses	1,366	1,233	2,539	2,321
Income before income taxes	224	297	410	480
Provision for (benefit from) income taxes	(6)	(38)	(8)	(44)
Equity in earnings (loss) of subsidiaries	0	0	0	0
Net income (loss)	218	259	402	436
Comprehensive income (loss)	$ (165)	$ (309)	$ (349)	$ (512)

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Guarantor And Non-Guarantor Consolidating Condensed Financial Statements (Consolidating Condensed Balance Sheets) (Detail) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2017	Dec. 31, 2016
Supplemental Guarantor Financial Information [Line Items]
Document Fiscal Year Focus	2018
Current assets:
Cash and cash equivalents	$ 489	$ 611	$ 776
Receivables, net	902	922
Other current assets	832	533
Total current assets	2,223	2,066
Property and equipment, net	715	704
Deferred income taxes	1,120	931
Goodwill	1,049	1,073
Other intangibles, net	843	850
Other non-current assets	243	196
Intercompany receivables (payables)	0	0
Investment in subsidiaries	0	0
Total assets exclusive of assets under vehicle programs	6,193	5,820
Assets under vehicle programs:
Program cash	161	283	65
Vehicles, net	13,867	10,626
Receivables from vehicle manufacturers and other	253	547
Investment in Avis Budget Rental Car Funding (AESOP) LLC—related party	445	423
Total Assets under vehicle programs	14,726	11,879
Total assets	20,919	17,699
Current liabilities:
Accounts payable and other current liabilities	1,832	1,619
Long-term Debt, Current Maturities	24	26
Total current liabilities	1,856	1,645
Long-term debt	3,544	3,573
Other non-current liabilities	745	717
Due to Related Parties, Noncurrent	0	0
Total liabilities exclusive of liabilities under vehicle programs	6,145	5,935
Liabilities under vehicle programs:
Debt	3,511	2,741
Due to Avis Budget Rental Car Funding (AESOP) LLC-related party	8,265	6,480
Deferred income taxes	1,727	1,594
Other	899	376
Total Liabilities under vehicle programs	14,402	11,191
Total stockholders' equity	372	573
Total liabilities and stockholders’ equity	20,919	17,699
Restricted Cash and Cash Equivalents	11		7
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	661	901	848	$ 720
Non-Guarantor Subsidiaries [Member]
Current assets:
Cash and cash equivalents	475		652
Assets under vehicle programs:
Program cash	161		65
Liabilities under vehicle programs:
Restricted Cash and Cash Equivalents	11		7
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	647		724	705
Parent Company [Member]
Current assets:
Cash and cash equivalents	3	4
Receivables, net	0	0
Other current assets	2	4
Total current assets	5	8
Property and equipment, net	0	0
Deferred income taxes	13	14
Goodwill	0	0
Other intangibles, net	0	0
Other non-current assets	46	46
Intercompany receivables (payables)	191	187
Investment in subsidiaries	169	381
Total assets exclusive of assets under vehicle programs	424	636
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	424	636
Current liabilities:
Accounts payable and other current liabilities	13	23
Long-term Debt, Current Maturities	0	0
Total current liabilities	13	23
Long-term debt	0	0
Other non-current liabilities	39	40
Due to Related Parties, Noncurrent	0	0
Total liabilities exclusive of liabilities under vehicle programs	52	63
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	372	573
Total liabilities and stockholders’ equity	424	636
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	3	4	3	3
Subsidiaries [Member]
Current assets:
Cash and cash equivalents	11	14
Receivables, net	0	0
Other current assets	114	89
Total current assets	125	103
Property and equipment, net	183	167
Deferred income taxes	887	704
Goodwill	0	0
Other intangibles, net	26	27
Other non-current assets	39	29
Intercompany receivables (payables)	393	382
Investment in subsidiaries	4,595	4,681
Total assets exclusive of assets under vehicle programs	6,248	6,093
Assets under vehicle programs:
Program cash	0	0
Vehicles, net	43	34
Receivables from vehicle manufacturers and other	3	1
Investment in Avis Budget Rental Car Funding (AESOP) LLC—related party	0	0
Total Assets under vehicle programs	46	35
Total assets	6,294	6,128
Current liabilities:
Accounts payable and other current liabilities	251	207
Long-term Debt, Current Maturities	17	17
Total current liabilities	268	224
Long-term debt	2,900	2,910
Other non-current liabilities	81	83
Due to Related Parties, Noncurrent	2,860	2,515
Total liabilities exclusive of liabilities under vehicle programs	6,109	5,732
Liabilities under vehicle programs:
Debt	16	15
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	16	15
Total stockholders' equity	169	381
Total liabilities and stockholders’ equity	6,294	6,128
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	11	14	121	12
Guarantor Subsidiaries [Member]
Current assets:
Cash and cash equivalents	0	0
Receivables, net	248	255
Other current assets	119	101
Total current assets	367	356
Property and equipment, net	317	321
Deferred income taxes	169	154
Goodwill	471	471
Other intangibles, net	477	480
Other non-current assets	16	16
Intercompany receivables (payables)	1,747	1,506
Investment in subsidiaries	3,900	3,938
Total assets exclusive of assets under vehicle programs	7,464	7,242
Assets under vehicle programs:
Program cash	0	0
Vehicles, net	57	61
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	57	61
Total assets	7,521	7,303
Current liabilities:
Accounts payable and other current liabilities	664	552
Long-term Debt, Current Maturities	2	3
Total current liabilities	666	555
Long-term debt	3	3
Other non-current liabilities	259	216
Due to Related Parties, Noncurrent	393	382
Total liabilities exclusive of liabilities under vehicle programs	1,321	1,156
Liabilities under vehicle programs:
Debt	52	57
Due to Avis Budget Rental Car Funding (AESOP) LLC-related party	0	0
Deferred income taxes	1,553	1,407
Other	0	2
Total Liabilities under vehicle programs	1,605	1,466
Total stockholders' equity	4,595	4,681
Total liabilities and stockholders’ equity	7,521	7,303
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	0	0	0	0
Subsidiaries Non Guarantor [Member]
Current assets:
Cash and cash equivalents	475	593
Receivables, net	654	667
Other current assets	597	339
Total current assets	1,726	1,599
Property and equipment, net	215	216
Deferred income taxes	51	59
Goodwill	578	602
Other intangibles, net	340	343
Other non-current assets	142	105
Intercompany receivables (payables)	924	824
Investment in subsidiaries	0	0
Total assets exclusive of assets under vehicle programs	3,976	3,748
Assets under vehicle programs:
Program cash	161	283
Vehicles, net	13,767	10,531
Receivables from vehicle manufacturers and other	250	546
Investment in Avis Budget Rental Car Funding (AESOP) LLC—related party	445	423
Total Assets under vehicle programs	14,623	11,783
Total assets	18,599	15,531
Current liabilities:
Accounts payable and other current liabilities	904	837
Long-term Debt, Current Maturities	5	6
Total current liabilities	909	843
Long-term debt	641	660
Other non-current liabilities	366	378
Due to Related Parties, Noncurrent	2	2
Total liabilities exclusive of liabilities under vehicle programs	1,918	1,883
Liabilities under vehicle programs:
Debt	3,443	2,669
Due to Avis Budget Rental Car Funding (AESOP) LLC-related party	8,265	6,480
Deferred income taxes	174	187
Other	899	374
Total Liabilities under vehicle programs	12,781	9,710
Total stockholders' equity	3,900	3,938
Total liabilities and stockholders’ equity	18,599	15,531
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	647	883	724	705
Eliminations [Member]
Current assets:
Cash and cash equivalents	0	0
Receivables, net	0	0
Other current assets	0	0
Total current assets	0	0
Property and equipment, net	0	0
Deferred income taxes	0	0
Goodwill	0	0
Other intangibles, net	0	0
Other non-current assets	0	0
Intercompany receivables (payables)	(3,255)	(2,899)
Investment in subsidiaries	(8,664)	(9,000)
Total assets exclusive of assets under vehicle programs	(11,919)	(11,899)
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	(11,919)	(11,899)
Current liabilities:
Accounts payable and other current liabilities	0	0
Long-term Debt, Current Maturities	0	0
Total current liabilities	0	0
Long-term debt	0	0
Other non-current liabilities	0	0
Due to Related Parties, Noncurrent	(3,255)	(2,899)
Total liabilities exclusive of liabilities under vehicle programs	(3,255)	(2,899)
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	(8,664)	(9,000)
Total liabilities and stockholders’ equity	(11,919)	(11,899)
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	$ 0	$ 0	$ 0	$ 0

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Guarantor And Non-Guarantor Consolidating Condensed Financial Statements (Consolidating Condensed Statements Of Cash Flows) (Detail) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017	Dec. 31, 2016
Supplemental Guarantor Financial Information [Line Items]
Net cash provided by (used in) operating activities	$ 1,121	$ 1,139
Property and equipment additions	(115)	(86)
Proceeds received on asset sales	6	4
Payments to Acquire Restricted Investments	(28)	(14)
Proceeds from (Repayments of) Related Party Debt		0
Other, net	(37)	0
Net cash used in investing activities exclusive of vehicle programs	(174)	(96)
Decrease (increase) in program cash		0
Investment in vehicles	(8,359)	(8,116)
Proceeds received on disposition of vehicles	4,807	5,059
Repayments of Related Party Debt	(22)	(33)
Net cash used in investing activities of vehicle programs	(3,574)	(3,090)
Net cash used in investing activities	(3,748)	(3,186)
Proceeds from long-term borrowings	81	589
Principal payments on borrowings	(94)	(591)
Proceeds from (Repayments of) Short-term Debt	(2)	(1)
Intercompany loan borrowings		0
Repurchases of common stock	(78)	(109)
Debt financing fees	(9)	(8)
Other, net	2	0
Net cash provided by financing activities exclusive of vehicle programs	(100)	(120)
Proceeds from borrowings	10,145	11,255
Principal payments on borrowings	(7,643)	(8,988)
Debt financing fees	(13)	(8)
Net cash provided by financing activities of vehicle programs	2,489	2,259
Net cash provided by financing activities	2,389	2,139
Effect of changes in exchange rates on cash and cash equivalents, program and restricted cash	(2)	36
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect	(240)	128
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	661	848	$ 901	$ 720
Eliminations [Member]
Supplemental Guarantor Financial Information [Line Items]
Net cash provided by (used in) operating activities	(95)	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		314
Other, net	0	(100)
Net cash used in investing activities exclusive of vehicle programs	0	214
Investment in vehicles	0	0
Proceeds received on disposition of vehicles	0	0
Repayments of Related Party Debt	0	0
Net cash used in investing activities of vehicle programs	0	0
Net cash used in investing activities	0	214
Proceeds from long-term borrowings	0	0
Principal payments on borrowings	0	0
Proceeds from (Repayments of) Short-term Debt	0	0
Intercompany loan borrowings		(314)
Repurchases of common stock	0	0
Debt financing fees	0	0
Other, net	95	100
Net cash provided by financing activities exclusive of vehicle programs	95	(214)
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	95	(214)
Effect of changes in exchange rates on cash and cash equivalents, program and restricted cash	0	0
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect	0	0
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	0	0	0	0
Non-Guarantor Subsidiaries [Member]
Supplemental Guarantor Financial Information [Line Items]
Other, net		0
Decrease (increase) in program cash		0
Net cash used in investing activities		(3,470)
Effect of changes in exchange rates on cash and cash equivalents, program and restricted cash		36
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect		19
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	647	724		705
Parent Company [Member]
Supplemental Guarantor Financial Information [Line Items]
Net cash provided by (used in) operating activities	75	9
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	0	100
Net cash used in investing activities exclusive of vehicle programs	0	100
Investment in vehicles	0	0
Proceeds received on disposition of vehicles	0	0
Repayments of Related Party Debt	0	0
Net cash used in investing activities of vehicle programs	0	0
Net cash used in investing activities	0	100
Proceeds from long-term borrowings	0	0
Principal payments on borrowings	0	0
Proceeds from (Repayments of) Short-term Debt	0	0
Intercompany loan borrowings		0
Repurchases of common stock	(78)	(109)
Debt financing fees	0	0
Other, net	2	0
Net cash provided by financing activities exclusive of vehicle programs	(76)	(109)
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	(76)	(109)
Effect of changes in exchange rates on cash and cash equivalents, program and restricted cash	0	0
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect	(1)	0
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	3	3	4	3
Subsidiaries [Member]
Supplemental Guarantor Financial Information [Line Items]
Net cash provided by (used in) operating activities	107	(41)
Property and equipment additions	(33)	(22)
Proceeds received on asset sales	2	1
Payments to Acquire Restricted Investments	(3)	0
Proceeds from (Repayments of) Related Party Debt		0
Other, net	0	0
Net cash used in investing activities exclusive of vehicle programs	(34)	(21)
Investment in vehicles	(1)	1
Proceeds received on disposition of vehicles	17	31
Repayments of Related Party Debt	0	0
Net cash used in investing activities of vehicle programs	16	32
Net cash used in investing activities	(18)	11
Proceeds from long-term borrowings	81	325
Principal payments on borrowings	(92)	(396)
Proceeds from (Repayments of) Short-term Debt	0	0
Intercompany loan borrowings		313
Repurchases of common stock	0	0
Debt financing fees	(9)	(3)
Other, net	(71)	(100)
Net cash provided by financing activities exclusive of vehicle programs	(91)	139
Proceeds from borrowings	0	0
Principal payments on borrowings	(1)	0
Debt financing fees	0	0
Net cash provided by financing activities of vehicle programs	(1)	0
Net cash provided by financing activities	(92)	139
Effect of changes in exchange rates on cash and cash equivalents, program and restricted cash	0	0
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect	(3)	109
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	11	121	14	12
Guarantor Subsidiaries [Member]
Supplemental Guarantor Financial Information [Line Items]
Net cash provided by (used in) operating activities	66	47
Property and equipment additions	(43)	(34)
Proceeds received on asset sales	0	0
Payments to Acquire Restricted Investments	(4)	(4)
Proceeds from (Repayments of) Related Party Debt		(1)
Other, net	0	0
Net cash used in investing activities exclusive of vehicle programs	(47)	(39)
Investment in vehicles	(1)	(2)
Proceeds received on disposition of vehicles	0	0
Repayments of Related Party Debt	0	0
Net cash used in investing activities of vehicle programs	(1)	(2)
Net cash used in investing activities	(48)	(41)
Proceeds from long-term borrowings	0	0
Principal payments on borrowings	(1)	(1)
Proceeds from (Repayments of) Short-term Debt	0	0
Intercompany loan borrowings		0
Repurchases of common stock	0	0
Debt financing fees	0	0
Other, net	(12)	0
Net cash provided by financing activities exclusive of vehicle programs	(13)	(1)
Proceeds from borrowings	0	0
Principal payments on borrowings	(5)	(5)
Debt financing fees	0	0
Net cash provided by financing activities of vehicle programs	(5)	(5)
Net cash provided by financing activities	(18)	(6)
Effect of changes in exchange rates on cash and cash equivalents, program and restricted cash	0	0
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect	0	0
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	0	0	0	0
Subsidiaries Non Guarantor [Member]
Supplemental Guarantor Financial Information [Line Items]
Net cash provided by (used in) operating activities	968	1,124
Property and equipment additions	(39)	(30)
Proceeds received on asset sales	4	3
Payments to Acquire Restricted Investments	(21)	(10)
Proceeds from (Repayments of) Related Party Debt		(313)
Other, net	(37)	0
Net cash used in investing activities exclusive of vehicle programs	(93)	(350)
Investment in vehicles	(8,357)	(8,115)
Proceeds received on disposition of vehicles	4,790	5,028
Repayments of Related Party Debt	(22)	(33)
Net cash used in investing activities of vehicle programs	(3,589)	(3,120)
Net cash used in investing activities	(3,682)	(3,470)
Proceeds from long-term borrowings	0	264
Principal payments on borrowings	(1)	(194)
Proceeds from (Repayments of) Short-term Debt	(2)	(1)
Intercompany loan borrowings		1
Repurchases of common stock	0	0
Debt financing fees	0	(5)
Other, net	(12)	0
Net cash provided by financing activities exclusive of vehicle programs	(15)	65
Proceeds from borrowings	10,145	11,255
Principal payments on borrowings	(7,637)	(8,983)
Debt financing fees	(13)	(8)
Net cash provided by financing activities of vehicle programs	2,495	2,264
Net cash provided by financing activities	2,480	2,329
Effect of changes in exchange rates on cash and cash equivalents, program and restricted cash	(2)	36
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect	(236)	19
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	$ 647	724	$ 883	705
Scenario, Previously Reported [Member]
Supplemental Guarantor Financial Information [Line Items]
Other, net		1
Decrease (increase) in program cash		(168)
Net cash used in investing activities		(3,019)
Effect of changes in exchange rates on cash and cash equivalents, program and restricted cash		27
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect		286
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents		776		490
Scenario, Previously Reported [Member] | Non-Guarantor Subsidiaries [Member]
Supplemental Guarantor Financial Information [Line Items]
Other, net		(1)
Decrease (increase) in program cash		(168)
Net cash used in investing activities		(3,303)
Effect of changes in exchange rates on cash and cash equivalents, program and restricted cash		27
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect		177
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents		652		475
Restatement Adjustment [Member]
Supplemental Guarantor Financial Information [Line Items]
Other, net		(1)
Decrease (increase) in program cash		168
Net cash used in investing activities		(167)
Effect of changes in exchange rates on cash and cash equivalents, program and restricted cash		9
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect		(158)
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents		72		230
Restatement Adjustment [Member] | Non-Guarantor Subsidiaries [Member]
Supplemental Guarantor Financial Information [Line Items]
Other, net		1
Decrease (increase) in program cash		168
Net cash used in investing activities		(167)
Effect of changes in exchange rates on cash and cash equivalents, program and restricted cash		9
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect		(158)
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents		$ 72		$ 230

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Subsequent Events (Details) € in Millions, $ in Millions	1 Months Ended
	Jul. 31, 2018 EUR (€)	Aug. 01, 2018 USD ($)	Jun. 30, 2018 USD ($)
Subsequent Event [Line Items]
Stock Repurchase Program, Authorized Amount | $			$ 1,500
Subsequent Event [Member]
Subsequent Event [Line Items]
Business Combination, Consideration Transferred | €	€ 35
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | €	€ 5
Stock Repurchase Program, Authorized Amount | $		$ 250