Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2015

Investments, All Other Investments [Abstract]

Schedule of Carrying Values and Estimated Fair Values of Debt Instruments [Table Text Block]

The carrying amounts and estimated fair values (Level 2) of debt instruments were as follows:

		As of September 30, 2015				As of December 31, 2014
		Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Corporate debt
	Short-term debt and current portion of long-term debt	$	27	$	27	$	28	$	28
	Long-term debt	3,505		3,434		3,392		3,439
Debt under vehicle programs
	Vehicle-backed debt due to Avis Budget Rental Car Funding	$	7,239	$	7,307	$	6,340	$	6,407
	Vehicle-backed debt	2,755		2,756		1,766		1,771
	Interest rate swaps and interest rate caps (a)	2		2		10		10

 __________

^(a)  Derivatives in a liability position.

Schedule of Notional Amounts of Outstanding Derivative Positions

The Company held derivative instruments with absolute notional values as follows:

	As of September 30, 2015
Interest rate caps (a)	$	8,428
Interest rate swaps	1,669
Foreign exchange contracts	724
Commodity contracts (millions of gallons of unleaded gasoline)	6

__________

^(a)  Represents $6.3 billion of interest rate caps sold, partially offset by approximately $2.1 billion of interest rate caps purchased. These amounts exclude $4.2 billion of interest rate caps purchased by the Company’s Avis Budget Rental Car Funding subsidiary as it is not consolidated by the Company.

Fair Value Of Derivative Instruments

Fair values (Level 2) of derivative instruments were as follows: 

		As of September 30, 2015				As of December 31, 2014
		Fair Value, Asset Derivatives		Fair Value, Liability Derivatives		Fair Value, Asset Derivatives		Fair Value, Liability Derivatives
Derivatives designated as hedging instruments
	Interest rate swaps (a)	$	—	$	9	$	1	$	3
Derivatives not designated as hedging instruments
	Interest rate caps (b)	1		2		—		10
	Foreign exchange contracts (c)	12		3		5		2
	Commodity contracts (c)	—		2		—		1
	Total	$	13	$	16	$	6	$	16

__________

Amounts in this table exclude derivatives issued by Avis Budget Rental Car Funding; however, certain amounts related to the derivatives held by Avis Budget Rental Car Funding are included within accumulated other comprehensive income.

^(a)  Included in other non-current assets or other non-current liabilities.

^(b)  Included in assets under vehicle programs or liabilities under vehicle programs.

^(c)  Included in other current assets or other current liabilities.

Derivative Instruments, Gain (Loss) [Table Text Block]

The effects of derivatives recognized in the Company’s Consolidated Condensed Financial Statements wereas follows:

		Three Months Ended   September 30,						Nine Months Ended   September 30,
		2015			2014			2015			2014
Derivatives designated as hedging instruments
	Interest rate swaps (a)	$	(1	)	$	3		$	(4	)	$	1
Derivatives not designated as hedging instruments (b)
	Interest rate caps (c)	(1		)	—			(1		)	—
	Foreign exchange contracts (d)	21			22			37			(7		)
	Commodity contracts (e)	(4		)	(2		)	—			(1		)
	Total	$	15		$	23		$	32		$	(7	)

__________

^(a)  Recognized, net of tax, as a component of other comprehensive income within stockholders’ equity.

^(b)  Gains (losses) related to derivative instruments are expected to be largely offset by (losses) gains on the underlying exposures being hedged.

^(c)  Included in interest expense.

^(d)  For the three months ended September 30, 2015, included a $19 million gain in interest expense and a $2 million gain in operating expense and for the nine months ended September 30, 2015, included a $21 million gain in interest expense and a $16 million gain in operating expense. For the three months ended September 30, 2014, included a $19 million gain in interest expense and $3 million gain in operating expense, and for the nine months ended September 30, 2014, included a $7 million loss in interest expense.

^(e)  Included in operating expense.