Debt Under Vehicle Programs and Borrowing Arrangements

9 Months Ended

Sep. 30, 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
	September 30,		December 31,
	2014		2013
North America - Debt due to Avis Budget Rental Car Funding ^(a)	$	6,983	$	5,656
North America - Canadian borrowings ^(a)(b)	556		400
International - Debt borrowings ^(a)	1,231		731
International - Capital leases ^(a)	427		289
Truck Rental - Debt borrowings ^(c)	261		226
Other	42		35
Total	$	9,500	$	7,337

__________


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


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


^(c)	The increase reflects additional borrowings to acquire rental 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 September 30, 2014.



	Debt Under Vehicle Programs
Within 1 year ^(a)	$	1,476
Between 1 and 2 years	3,155
Between 2 and 3 years	1,210
Between 3 and 4 years	1,688
Between 4 and 5 years	1,438
Thereafter	533
Total	$	9,500

__________


^(a)	Vehicle-backed debt maturing within one year primarily represents term asset-backed securities.

COMMITTED CREDIT FACILITIES AND AVAILABLE FUNDING ARRANGEMENTS

As of September 30, 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)	$	8,793	$	6,983	$	1,810
North America - Canadian borrowings ^(c)	915		556		359
International - Debt borrowings ^(d)	1,550		1,231		319
International - Capital leases ^(e)	625		427		198
Truck Rental - Debt borrowings ^(f)	280		261		19
Other	42		42		—
Total	$	12,205	$	9,500	$	2,705

__________


^(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 $810 million of underlying vehicles and related assets.


^(d)	The outstanding debt is collateralized by approximately $1.7 billion of underlying vehicles and related assets.


^(e)	The outstanding debt is collateralized by $409 million of underlying vehicles and related assets.


^(f)	The outstanding debt is collateralized by $359 million of underlying vehicles and related assets.

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 September 30, 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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