Stockholders' Equity

3 Months Ended

Mar. 31, 2013

Equity [Abstract]

Stockholders' Equity

Stockholders’ Equity

During the three months ended March 31, 2013, concurrently with the Company’s repurchase of a portion of its 3½% convertible notes, the Company repurchased warrants for the purchase of the Company’s common stock for $28 million and sold an equal portion of its convertible note hedge for $37 million, reducing the number of shares related to each of the hedge and warrant by approximately 3 million.

Accumulated Other Comprehensive Income

The components of accumulated other comprehensive income were as follows:

	Currency Translation Adjustments			Net Unrealized Gains (Losses) on Cash Flow Hedges		Net Unrealized Gains on Available-for Sale Securities		Minimum Pension Liability Adjustment			Accumulated Other Comprehensive Income
Balance, January 1, 2013	$	193		$	—	$	2	$	(85	)	$	110
Other comprehensive income before reclassifications	(23		)	—		—		—			(23		)
Amounts reclassified from accumulated other comprehensive income	—			—		—		—			—
Net current-period other comprehensive income	(23		)	—		—		—			(23		)
As of March 31, 2013	$	170		$	—	$	2	$	(85	)	$	87

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

Total Comprehensive Income

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

The components of other comprehensive income were as follows:

	Three Months Ended   March 31,
	2013			2012
Net income	$	(46	)	$	(23	)
Other comprehensive income:
Currency translation adjustment	(23		)	37
Net unrealized gains on cash flow hedges, net of tax	—			7
	(23		)	44
Total comprehensive income	$	(69	)	$	21

During the three months ended March 31, 2013, the Company’s net unrealized gains on cash flow hedges were immaterial. During the three months ended March 31, 2012, the Company’s net unrealized losses on cash flow hedges decreased by $12 million ($7 million, net of tax), primarily due to the realization of losses in income. Such decreases during the three months ended March 31, 2012 included $11 million ($7 million, net of tax), related to the Company’s vehicle-backed debt and were offset by a corresponding change in the Company’s investment in Avis Budget Rental Car Funding on the Consolidated Condensed Balance Sheets.