Debt Under Vehicle Programs and Borrowing Arrangements

3 Months Ended

Mar. 31, 2015

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,
	2015		2014
Americas - Debt due to Avis Budget Rental Car Funding ^(a)	$	6,838	$	6,340
Americas - Debt borrowings ^(b)	602		746
International - Debt borrowings ^(c)	591		685
International - Capital leases ^(c)	289		314
Other	21		31
Total	$	8,341	$	8,116

__________


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


^(b)	The decrease results from the timing of borrowings.


^(c)	The decrease principally reflects currency translation adjustments.

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, 2015.



	Debt Under Vehicle Programs
Within 1 year ^(a)	$	1,791
Between 1 and 2 years	1,878
Between 2 and 3 years	1,007
Between 3 and 4 years	1,701
Between 4 and 5 years	1,319
Thereafter	645
Total	$	8,341

__________


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

COMMITTED CREDIT FACILITIES AND AVAILABLE FUNDING ARRANGEMENTS

As of March 31, 2015, 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
Americas - Debt due to Avis Budget Rental Car Funding ^(b)	$	9,458	$	6,838	$	2,620
Americas - Debt borrowings ^(c)	929		602		327
International - Debt borrowings ^(d)	1,596		591		1,005
International - Capital leases ^(e)	340		289		51
Other	21		21		—
Total	$	12,344	$	8,341	$	4,003

__________


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


^(b)	The outstanding debt is collateralized by approximately $8.5 billion of underlying vehicles and related assets.


^(c)	The outstanding debt is collateralized by approximately $832 million of underlying vehicles and related assets.


^(d)	The outstanding debt is collateralized by approximately $1.1 billion of underlying vehicles and related assets.


^(e)	The outstanding debt is collateralized by approximately $283 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 March 31, 2015, 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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