Guarantor and Non-Guarantor Consolidating Condensed Financial Statements

The following consolidating financial information presents Consolidating Condensed Statements of Comprehensive Income for the three months ended March 31, 2013 and 2012, Consolidating Condensed Balance Sheets as of March 31, 2013 and December 31, 2012, and Consolidating Condensed Statements of Cash Flows for the three months ended March 31, 2013 and 2012 for: (i) Avis Budget Group, Inc. (the “Parent”); (ii) Avis Budget Car Rental and Avis Budget Finance, Inc. (the “Subsidiary Issuers”); (iii) the guarantor subsidiaries; (iv) the non-guarantor subsidiaries; (v) elimination entries necessary to consolidate the Parent with the Subsidiary Issuers, and the guarantor and non-guarantor subsidiaries; and (vi) the Company on a consolidated basis. The Subsidiary Issuers and the guarantor and non-guarantor subsidiaries are 100% owned by the Parent, either directly or indirectly. All guarantees are full and unconditional and joint and several. This financial information is being presented in relation to the Company’s guarantee of the payment of principal, premium (if any) and interest on the senior notes issued by Avis Budget Car Rental. These senior notes consist of Avis Budget Car Rental’s Floating rate notes due 2014, 4⅞% notes due 2017, 9⅝% notes due 2018, 8¼% notes due 2019 and 9¾% notes due 2020 (collectively, the “Notes”). See Note 11—Long-term Debt and Borrowing Arrangements for additional information regarding these Notes. The Notes are guaranteed by the Parent and certain subsidiaries.

Investments in subsidiaries are accounted for using the equity method of accounting for purposes of the consolidating presentation. The principal elimination entries relate to investments in subsidiaries and intercompany balances and transactions. For purposes of the accompanying Consolidating Condensed Statements of Comprehensive Income, certain expenses incurred by the Subsidiary Issuers are allocated to the guarantor and non-guarantor subsidiaries.

Consolidating Condensed Statements of Comprehensive Income

Three Months Ended March 31, 2013



	Parent			Subsidiary Issuers			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Total
Revenues
Vehicle rental	$	—		$	—		$	837		$	380		$	—		$	1,217
Other	—			—			246			526			(298		)	474
Net revenues	—			—			1,083			906			(298		)	1,691

Expenses
Operating	2			1			558			370			—			931
Vehicle depreciation and lease charges, net	—			—			260			243			(117		)	386
Selling, general and administrative	9			1			131			83			—			224
Vehicle interest, net	—			—			42			58			(43		)	57
Non-vehicle related depreciation and amortization	—			—			22			12			—			34
Interest expense related to corporate debt, net:
Interest expense	1			54			—			3			—			58
Intercompany interest expense (income)	(3		)	(11		)	3			11			—			—
Early extinguishment of debt	39			1			—			—			—			40
Restructuring expenses	—			—			6			4			—			10
Transaction-related costs	—			4			1			3			—			8
Total expenses	48			50			1,023			787			(160		)	1,748
Income (loss) before income taxes and equity in earnings of subsidiaries	(48		)	(50		)	60			119			(138		)	(57		)
Provision for (benefit from) income taxes	(4		)	(20		)	14			(1		)	—			(11		)
Equity in earnings (loss) of subsidiaries	(2		)	28			(18		)	—			(8		)	—
Net income (loss)	$	(46	)	$	(2	)	$	28		$	120		$	(146	)	$	(46	)

Comprehensive income (loss)	$	(69	)	$	(25	)	$	2		$	95		$	(72	)	$	(69	)

Three Months Ended March 31, 2012



	Parent			Subsidiary Issuers			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Total
Revenues
Vehicle rental	$	—		$	—		$	786		$	382		$	—		$	1,168
Other	—			—			235			474			(254		)	455
Net revenues	—			—			1,021			856			(254		)	1,623

Expenses
Operating	(1		)	6			537			351			—			893
Vehicle depreciation and lease charges, net	—			—			197			212			(91		)	318
Selling, general and administrative	5			—			137			77			—			219
Vehicle interest, net	—			—			61			75			(62		)	74
Non-vehicle related depreciation and amortization	—			—			19			13			—			32
Interest expense related to corporate debt, net:
Interest expense	3			64			—			6			—			73
Intercompany interest expense (income)	(7		)	(81		)	74			14			—			—
Early extinguishment of debt	18			9			—			—			—			27
Restructuring expenses	—			—			—			7			—			7
Transaction-related costs	3			—			—			3			—			6
Total expenses	21			(2		)	1,025			758			(153		)	1,649
Income (loss) before income taxes and equity in earnings of subsidiaries	(21		)	2			(4		)	98			(101		)	(26		)
Provision for (benefit from) income taxes	(1		)	3			(2		)	(3		)	—			(3		)
Equity in earnings (loss) of subsidiaries	(3		)	(2		)	—			—			5			—
Net income (loss)	$	(23	)	$	(3	)	$	(2	)	$	101		$	(96	)	$	(23	)

Comprehensive income	$	21		$	41		$	42		$	146		$	(229	)	$	21

Consolidating Condensed Balance Sheets

As of March 31, 2013



	Parent		Subsidiary Issuers		Guarantor Subsidiaries		Non- Guarantor Subsidiaries			Eliminations			Total
Assets
Current assets:
Cash and cash equivalents	$	6	$	17	$	8	$	538		$	—		$	569
Receivables, net	—		—		184		407			—			591
Deferred income taxes	3		—		141		12			(3		)	153
Other current assets	4		88		116		350			—			558
Total current assets	13		105		449		1,307			(3		)	1,871

Property and equipment, net	—		93		310		156			—			559
Deferred income taxes	20		1,179		148		—			(1		)	1,346
Goodwill	—		—		348		298			—			646
Other intangibles, net	—		42		530		338			—			910
Other non-current assets	108		87		21		145			—			361
Intercompany receivables (payables)	142		100		282		(524		)	—			—
Investment in subsidiaries	603		2,546		3,230		—			(6,379		)	—
Total assets exclusive of assets under vehicle programs	886		4,152		5,318		1,720			(6,383		)	5,693

Assets under vehicle programs:
Program cash	—		—		—		53			—			53
Vehicles, net	—		7		11		10,144			—			10,162
Receivables from vehicle manufacturers and other	—		—		—		287			—			287
Investment in Avis Budget Rental Car Funding (AESOP) LLC-related party	—		—		—		362			—			362
	—		7		11		10,846			—			10,864
Total assets	$	886	$	4,159	$	5,329	$	12,566		$	(6,383	)	$	16,557

Liabilities and stockholders’ equity
Current liabilities:
Accounts payable and other current liabilities	$	13	$	214	$	557	$	765		$	(3	)	$	1,546
Short-term debt and current portion of long-term debt	—		15		3		11			—			29
Total current liabilities	13		229		560		776			(3		)	1,575

Long-term debt	77		3,233		8		—			—			3,318
Other non-current liabilities	102		91		276		416			(1		)	884
Total liabilities exclusive of liabilities under vehicle programs	192		3,553		844		1,192			(4		)	5,777

Liabilities under vehicle programs:
Debt	—		3		—		1,586			—			1,589
Due to Avis Budget Rental Car Funding (AESOP) LLC-related party	—		—		—		5,873			—			5,873
Deferred income taxes	—		—		1,939		187			—			2,126
Other	—		—		—		498			—			498
	—		3		1,939		8,144			—			10,086
Total stockholders’ equity	694		603		2,546		3,230			(6,379		)	694
Total liabilities and stockholders’ equity	$	886	$	4,159	$	5,329	$	12,566		$	(6,383	)	$	16,557

As of December 31, 2012



	Parent		Subsidiary Issuers		Guarantor Subsidiaries		Non- Guarantor Subsidiaries			Eliminations			Total
Assets
Current assets:
Cash and cash equivalents	$	5	$	102	$	—	$	499		$	—		$	606
Receivables, net	—		—		156		397			—			553
Deferred income taxes	3		1		138		4			—			146
Other current assets	5		73		81		246			—			405
Total current assets	13		176		375		1,146			—			1,710

Property and equipment, net	—		90		276		163			—			529
Deferred income taxes	23		1,216		223		—			(8		)	1,454
Goodwill	—		—		74		301			—			375
Other intangibles, net	—		43		341		347			—			731
Other non-current assets	109		80		14		117			—			320
Intercompany receivables (payables)	142		141		174		(457		)	—			—
Investment in subsidiaries	723		2,030		3,293		—			(6,046		)	—
Total assets exclusive of assets under vehicle programs	1,010		3,776		4,770		1,617			(6,054		)	5,119

Assets under vehicle programs:
Program cash	—		—		—		24			—			24
Vehicles, net	—		7		13		9,254			—			9,274
Receivables from vehicle manufacturers and other	—		—		—		439			—			439
Investment in Avis Budget Rental Car Funding (AESOP) LLC-related party	—		—		—		362			—			362
	—		7		13		10,079			—			10,099
Total assets	$	1,010	$	3,783	$	4,783	$	11,696		$	(6,054	)	$	15,218

Liabilities and stockholders’ equity
Current liabilities:
Accounts payable and other current liabilities	$	22	$	250	$	490	$	659		$	—		$	1,421
Short-term debt and current portion of long-term debt	—		13		3		41			—			57
Total current liabilities	22		263		493		700			—			1,478

Long-term debt	128		2,712		8		—			—			2,848
Other non-current liabilities	103		79		277		420			(8		)	871
Total liabilities exclusive of liabilities under vehicle programs	253		3,054		778		1,120			(8		)	5,197

Liabilities under vehicle programs:
Debt	—		4		—		1,599			—			1,603
Due to Avis Budget Rental Car Funding (AESOP) LLC-related party	—		—		—		5,203			—			5,203
Deferred income taxes	—		—		1,975		188			—			2,163
Other	—		2		—		293			—			295
	—		6		1,975		7,283			—			9,264
Total stockholders’ equity	757		723		2,030		3,293			(6,046		)	757
Total liabilities and stockholders’ equity	$	1,010	$	3,783	$	4,783	$	11,696		$	(6,054	)	$	15,218

Consolidating Condensed Statements of Cash Flows

Three Months Ended March 31, 2013



	Parent			Subsidiary Issuers			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Total
Net cash provided by (used in) operating activities	$	6		$	(12	)	$	(25	)	$	331		$	—	$	300

Investing activities
Property and equipment additions	—			(5		)	(10		)	(6		)	—		(21		)
Proceeds received on asset sales	—			2			—			2			—		4
Net assets acquired, net of cash acquired	—			(513		)	16			21			—		(476		)
Other, net	—			(1		)	28			(1		)	—		26
Net cash provided by (used in) investing activities exclusive of vehicle programs	—			(517		)	34			16			—		(467		)

Vehicle programs:
Increase in program cash	—			—			—			(24		)	—		(24		)
Investment in vehicles	—			(1		)	—			(3,110		)	—		(3,111		)
Proceeds received on disposition of vehicles	—			1			—			2,393			—		2,394
	—			—			—			(741		)	—		(741		)
Net cash provided by (used in) investing activities	—			(517		)	34			(725		)	—		(1,208		)

Financing activities
Proceeds from long-term borrowings	—			1,225			—			—			—		1,225
Payments on long-term borrowings	(89		)	(698		)	(1		)	—			—		(788		)
Net change in short-term borrowings	—			—			—			(31		)	—		(31		)
Purchase of warrants	(28		)	—			—			—			—		(28		)
Proceeds from sale of call options	37			—			—			—			—		37
Net intercompany transactions	73			(73		)	—			—			—		—
Debt financing fees	—			(10		)	—			—			—		(10		)
Other, net	2			—			—			—			—		2
Net cash provided by (used in) financing activities exclusive of vehicle programs	(5		)	444			(1		)	(31		)	—		407

Vehicle programs:
Proceeds from borrowings	—			—			—			3,762			—		3,762
Payments on borrowings	—			—			—			(3,279		)	—		(3,279		)
Debt financing fees	—			—			—			(17		)	—		(17		)
	—			—			—			466			—		466
Net cash provided by (used in) financing activities	(5		)	444			(1		)	435			—		873
Effect of changes in exchange rates on cash and cash equivalents	—			—			—			(2		)	—		(2		)
Net increase (decrease) in cash and cash equivalents	1			(85		)	8			39			—		(37		)
Cash and cash equivalents, beginning of period	5			102			—			499			—		606
Cash and cash equivalents, end of period	$	6		$	17		$	8		$	538		$	—	$	569

Three Months Ended March 31, 2012



	Parent			Subsidiary Issuers			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
Net cash provided by (used in) operating activities	$	(6	)	$	(86	)	$	8		$	334		$	3		$	253

Investing activities
Property and equipment additions	—			(5		)	(7		)	(8		)	—			(20		)
Proceeds received on asset sales	—			2			—			1			—			3
Other, net	4			(1		)	—			(4		)	—			(1		)
Net cash provided by (used in) investing activities exclusive of vehicle programs	4			(4		)	(7		)	(11		)	—			(18		)

Vehicle programs:
Increase in program cash	—			—			—			(39		)	—			(39		)
Investment in vehicles	—			(1		)	—			(3,052		)	—			(3,053		)
Proceeds received on disposition of vehicles	—			4			—			2,139			—			2,143
	—			3			—			(952		)	—			(949		)
Net cash provided by (used in) investing activities	4			(1		)	(7		)	(963		)	—			(967		)

Financing activities
Proceeds from long-term borrowings	—			624			—			—			—			624
Payments on long-term borrowings	(101		)	(419		)	(1		)	1			—			(520		)
Net change in short-term borrowings	—			—			—			(12		)	—			(12		)
Purchase of warrants	(13		)	—			—			—			—			(13		)
Proceeds from sale of call option	19			—			—			—			—			19
Net intercompany transactions	100			(99		)	1			1			(3		)	—
Debt financing fees	—			(8		)	—			—			—			(8		)
Net cash provided by (used in) financing activities exclusive of vehicle programs	5			98			—			(10		)	(3		)	90

Vehicle programs:
Proceeds from borrowings	—			—			—			3,140			—			3,140
Payments on borrowings	—			—			—			(2,440		)	—			(2,440		)
Debt financing fees	—			—			—			(7		)	—			(7		)
	—			—			—			693			—			693
Net cash provided by (used in) financing activities	5			98			—			683			(3		)	783
Effect of changes in exchange rates on cash and cash equivalents	—			—			—			3			—			3
Net increase in cash and cash equivalents	3			11			1			57			—			72
Cash and cash equivalents, beginning of period	2			234			1			297			—			534
Cash and cash equivalents, end of period	$	5		$	245		$	2		$	354		$	—		$	606