Debt Under Vehicle Programs and Borrowing Arrangements

6 Months Ended

Jun. 30, 2013

Debt Under Vehicle Programs and Borrowing Arrangements

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



	As of		As of
	June 30,		December 31,
	2013		2012
North America - Debt due to Avis Budget Rental Car Funding ^(a)	$	6,986	$	5,203
North America - Canadian borrowings ^(a)	631		353
International - Debt borrowings ^(a)	912		679
International - Capital leases ^(a)	455		315
Truck Rental - Debt borrowings	257		253
Other	116		3
Total	$	9,357	$	6,806

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^(a)	The increase principally reflects increased borrowing to fund a seasonal increase in the size of the Company’s car rental fleet.

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, 2013:



	Vehicle- Backed Debt
Within 1 year ^(a)	$	942
Between 1 and 2 years	4,081
Between 2 and 3 years	1,367
Between 3 and 4 years	1,406
Between 4 and 5 years	1,076
Thereafter	485
Total	$	9,357

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^(a)	Vehicle-backed debt maturing within one year includes term asset-backed securities of approximately $545 million and bank and bank-sponsored borrowings of $397 million.

As of June 30, 2013, available funding under the Company’s vehicle programs (including related party debt due to Avis Budget Rental Car Funding) consisted of:



	Total Capacity ^(a)		Outstanding Borrowings		Available Capacity
North America - Debt due to Avis Budget Rental Car Funding ^(b)	$	7,291	$	6,986	$	305
North America - Canadian borrowings ^(c)	727		631		96
International - Debt borrowings ^(d)	1,321		912		409
International - Capital leases	527		455		72
Truck Rental - Debt borrowings ^(e)	259		257		2
Other ^(f)	135		116		19
Total	$	10,260	$	9,357	$	903

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


^(b)	The outstanding debt is collateralized by approximately $8.7 billion of underlying vehicles and related assets.


^(c)	The outstanding debt is collateralized by $833 million of underlying vehicles and related assets.


^(d)	The outstanding debt is collateralized by approximately $1.3 billion of underlying vehicles and related assets.


^(e)	The outstanding debt is collateralized by $432 million of underlying vehicles and related assets.


^(f)	The outstanding debt is collateralized by $182 million of underlying vehicles and related assets.

In March 2013, the Company entered into a three-year, €500 million (approximately $650 million) European rental fleet securitization program, which matures in 2016 and will be used to finance fleet purchases for certain of the Company’s European operations.

Debt agreements under the Company’s vehicle-backed funding programs contain restrictive covenants, including restrictions on dividends paid to the Company by certain of its subsidiaries and restrictions on indebtedness, mergers, liens, liquidations and sale and leaseback transactions and in some cases also require compliance with certain financial requirements. As of June 30, 2013, the Company is not aware of any instances of non-compliance with any of the financial or restrictive covenants contained in the debt agreements under its vehicle-backed funding programs.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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