Debt Under Vehicle Programs and Borrowing Arrangements

3 Months Ended

Mar. 31, 2014

Debt Under Vehicle Programs and Borrowing Arrangements

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



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

__________


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


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


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

DEBT MATURITIES

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



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

__________


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

COMMITTED CREDIT FACILITIES AND AVAILABLE FUNDING ARRANGEMENTS

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



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

__________


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


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


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


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


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


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

DEBT COVENANTS

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

- 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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