Guarantor and Non-Guarantor Consolidating Financial Statements

12 Months Ended

Dec. 31, 2016

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Guarantor and Non-guarantor Consolidating Financial Statements

Guarantor and Non-Guarantor Consolidating Financial Statements

The following consolidating financial information presents Consolidating Condensed Statements of Operations for the years ended December 31, 2016, 2015 and 2014, Consolidating Condensed Balance Sheets as of December 31, 2016 and December 31, 2015 and Consolidating Condensed Statements of Cash Flows for the years ended December 31, 2016, 2015 and 2014 for: (i) Avis Budget Group, Inc. (the “Parent”); (ii) ABCR and Avis Budget Finance, Inc. (the “Subsidiary Issuers”); (iii) the guarantor subsidiaries; (iv) the non-guarantor subsidiaries; (v) elimination entries necessary to consolidate the Parent with the Subsidiary Issuers, the guarantor and non-guarantor subsidiaries; and (vi) the Company on a consolidated basis. The Subsidiary Issuers and the guarantor and non-guarantor subsidiaries are 100% owned by the Parent, either directly or indirectly. All guarantees are full and unconditional and joint and several. This financial information is being presented in relation to the Company’s guarantee of the payment of principal, premium (if any) and interest on the notes issued by the Subsidiary Issuers. See Note 12-Long-term Debt and Borrowing Arrangements for additional description of these guaranteed notes. The Senior Notes have separate investors than the equity investors of the Company and are guaranteed by the Parent and certain subsidiaries.

Investments in subsidiaries are accounted for using the equity method of accounting for purposes of the consolidating presentation. The principal elimination entries relate to investments in subsidiaries and intercompany balances and transactions. For purposes of the accompanying Consolidating Condensed Statements of Operations, certain expenses incurred by the Subsidiary Issuers are allocated to the guarantor and non-guarantor subsidiaries.

For the Year Ended December 31, 2016

			Parent			Subsidiary Issuers			Guarantor Subsidiaries			Non- Guarantor  Subsidiaries			Eliminations			Total
Revenues
	Vehicle rental		$	—		$	—		$	4,134		$	1,947		$	—		$	6,081
	Other		—			—			1,209			3,563			(2,194		)	2,578
Net revenues			—			—			5,343			5,510			(2,194		)	8,659
Expenses
	Operating		4			18			2,622			1,738			—			4,382
	Vehicle depreciation and lease charges, net		—			—			1,993			2,045			(1,991		)	2,047
	Selling, general and administrative		38			18			631			447			—			1,134
	Vehicle interest, net		—			—			198			289			(203		)	284
	Non-vehicle related depreciation and amortization		—			2			155			96			—			253
	Interest expense related to corporate debt, net:
		Interest expense	—			141			3			59			—			203
		Intercompany interest expense (income)	(13		)	(7		)	23			(3		)	—			—
		Early extinguishment of debt	—			10			—			17			—			27
	Restructuring Expense		—			—			9			20			—			29
	Transaction-related costs, net		—			2			1			18			—			21
Total expenses			29			184			5,635			4,726			(2,194		)	8,380
Income (loss) before income taxes and equity in earnings of subsidiaries			(29		)	(184		)	(292		)	784			—			279
Provision for (benefit from) income taxes			(11		)	(70		)	123			74			—			116
Equity in earnings of subsidiaries			181			295			710			—			(1,186		)	—
Net income			$	163		$	181		$	295		$	710		$	(1,186	)	$	163
Comprehensive income			$	156		$	173		$	283		$	712		$	(1,168	)	$	156

For the Year Ended December 31, 2015

			Parent			Subsidiary Issuers			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Total
Revenues
	Vehicle rental		$	—		$	—		$	4,124		$	1,902	$	—		$	6,026
	Other		—			—			1,181			3,335		(2,040		)	2,476
Net revenues			—			—			5,305			5,237		(2,040		)	8,502
Expenses
	Operating		2			17			2,587			1,678		—			4,284
	Vehicle depreciation and lease charges, net		—			1			1,819			1,936		(1,823		)	1,933
	Selling, general and administrative		32			15			619			427		—			1,093
	Vehicle interest, net		—			—			204			302		(217		)	289
	Non-vehicle related depreciation and amortization		—			1			133			84		—			218
	Interest expense related to corporate debt, net:
		Interest expense	—			159			(5		)	40		—			194
		Intercompany interest expense (income)	(12		)	(11		)	16			7		—			—
		Early extinguishment of debt	—			23			—			—		—			23
	Transaction-related costs, net		—			22			6			40		—			68
	Restructuring expense		—			—			6			12		—			18
Total expenses			22			227			5,385			4,526		(2,040		)	8,120
Income (loss) before income taxes and equity in earnings of subsidiaries			(22		)	(227		)	(80		)	711		—			382
Provision for (benefit from) income taxes			(9		)	(178		)	170			86		—			69
Equity in earnings of subsidiaries			326			375			625			—		(1,326		)	—
Net income			$	313		$	326		$	375		$	625	$	(1,326	)	$	313
Comprehensive income			$	188		$	203		$	253		$	504	$	(960	)	$	188

For the Year Ended December 31, 2014

			Parent			Subsidiary  Issuers			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Total
Revenues
	Vehicle rental		$	—		$	—		$	4,038		$	1,988	$	—		$	6,026
	Other		—			—			1,167			3,426		(2,134		)	2,459
Net revenues			—			—			5,205			5,414		(2,134		)	8,485
Expenses
	Operating		10			13			2,525			1,703		—			4,251
	Vehicle depreciation and lease charges, net		—			1			1,920			1,996		(1,921		)	1,996
	Selling, general and administrative		27			23			602			428		—			1,080
	Vehicle interest, net		—			—			200			295		(213		)	282
	Non-vehicle related depreciation and amortization		—			2			111			67		—			180
	Interest expense related to corporate debt, net:
		Interest expense	2			163			2			42		—			209
		Intercompany interest expense (income)	(13		)	(11		)	1			23		—			—
		Early extinguishment of debt	—			56			—			—		—			56
	Restructuring expense		—			—			7			19		—			26
	Transaction-related costs, net		1			8			(20		)	24		—			13
Total expenses			27			255			5,348			4,597		(2,134		)	8,093
Income (loss) before income taxes and equity in earnings of subsidiaries			(27		)	(255		)	(143		)	817		—			392
Provision for (benefit from) income taxes			(10		)	(108		)	186			79		—			147
Equity in earnings of subsidiaries			262			409			738			—		(1,409		)	—
Net income			$	245		$	262		$	409		$	738	$	(1,409	)	$	245
Comprehensive income			$	106		$	123		$	273		$	624	$	(1,020	)	$	106

As of December 31, 2016

		Parent		Subsidiary Issuers		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Total
Assets
Current assets:
	Cash and cash equivalents	$	3	$	12	$	—	$	475	$	—		$	490
	Receivables, net	—		—		231		577		—			808
	Other current assets	2		101		90		326		—			519
Total current assets		5		113		321		1,378		—			1,817
Property and equipment, net		—		148		341		196		—			685
Deferred income taxes		20		1,219		268		—		(14		)	1,493
Goodwill		—		—		489		518		—			1,007
Other intangibles, net		—		28		502		340		—			870
Other non-current assets		75		24		16		78		—			193
Intercompany receivables		171		359		1,466		670		(2,666		)	—
Investment in subsidiaries		42		3,717		3,698		—		(7,457		)	—
Total assets exclusive of assets under vehicle programs		313		5,608		7,101		3,180		(10,137		)	6,065
Assets under vehicle programs:
	Program cash	—		—		—		225		—			225
	Vehicles, net	—		24		70		10,370		—			10,464
	Receivables from vehicle manufacturers and other	—		1		—		526		—			527
	Investment in Avis Budget Rental Car Funding (AESOP) LLC-related party	—		—		—		362		—			362
		—		25		70		11,483		—			11,578
Total assets		$	313	$	5,633	$	7,171	$	14,663	$	(10,137	)	$	17,643
Liabilities and stockholders’ equity
Current liabilities:
	Accounts payable and other current liabilities	$	23	$	189	$	512	$	764	$	—		$	1,488
	Short-term debt and current portion of long-term debt	—		264		3		12		—			279
Total current liabilities		23		453		515		776		—			1,767
Long-term debt		—		2,730		3		511		—			3,244
Other non-current liabilities		69		88		253		368		(14		)	764
Intercompany payables		—		2,306		359		1		(2,666		)	—
Total liabilities exclusive of liabilities under vehicle programs		92		5,577		1,130		1,656		(2,680		)	5,775
Liabilities under vehicle programs:
	Debt	—		14		66		2,103		—			2,183
	Due to Avis Budget Rental Car Funding (AESOP) LLC-related party	—		—		—		6,695		—			6,695
	Deferred income taxes	—		—		2,258		171		—			2,429
	Other	—		—		—		340		—			340
		—		14		2,324		9,309		—			11,647
Total stockholders’ equity		221		42		3,717		3,698		(7,457		)	221
Total liabilities and stockholders’ equity		$	313	$	5,633	$	7,171	$	14,663	$	(10,137	)	$	17,643

As of December 31, 2015

		Parent		Subsidiary Issuers		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Total
Assets
Current assets:
	Cash and cash equivalents	$	4	$	70	$	—	$	378	$	—		$	452
	Receivables, net	—		—		212		456		—			668
	Other current assets	2		78		83		344		—			507
Total current assets		6		148		295		1,178		—			1,627
Property and equipment, net		—		134		345		202		—			681
Deferred income taxes		20		1,246		253		—		(31		)	1,488
Goodwill		—		—		487		486		—			973
Other intangibles, net		—		30		525		362		—			917
Other non-current assets		93		15		17		107		—			232
Intercompany receivables		160		367		1,070		696		(2,293		)	—
Investment in subsidiaries		272		3,426		3,680		—		(7,378		)	—
Total assets exclusive of assets under vehicle programs		551		5,366		6,672		3,031		(9,702		)	5,918
Assets under vehicle programs:
	Program cash	—		—		—		258		—			258
	Vehicles, net	—		18		78		10,562		—			10,658
	Receivables from vehicle manufacturers and other	—		—		—		438		—			438
	Investment in Avis Budget Rental Car Funding (AESOP) LLC-related party	—		—		—		362		—			362
		—		18		78		11,620		—			11,716
Total assets		$	551	$	5,384	$	6,750	$	14,651	$	(9,702	)	$	17,634
Liabilities and stockholders’ equity
Current liabilities:
	Accounts payable and other current liabilities	$	24	$	180	$	471	$	810	$	—		$	1,485
	Short-term debt and current portion of long-term debt	—		14		5		7		—			26
Total current liabilities		24		194		476		817		—			1,511
Long-term debt		—		2,932		2		501		—			3,435
Other non-current liabilities		88		85		237		355		(31		)	734
Intercompany payables		—		1,897		336		60		(2,293		)	—
Total liabilities exclusive of liabilities under vehicle programs		112		5,108		1,051		1,733		(2,324		)	5,680
Liabilities under vehicle programs:
	Debt	—		4		74		1,986		—			2,064
	Due to Avis Budget Rental Car Funding (AESOP) LLC-related party	—		—		—		6,796		—			6,796
	Deferred income taxes	—		—		2,199		168		—			2,367
	Other	—		—		—		288		—			288
		—		4		2,273		9,238		—			11,515
Total stockholders’ equity		439		272		3,426		3,680		(7,378		)	439
Total liabilities and stockholders’ equity		$	551	$	5,384	$	6,750	$	14,651	$	(9,702	)	$	17,634

For the Year Ended December 31, 2016

	Parent			Subsidiary Issuers			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
Net cash provided by (used in) operating activities	$	268		$	(10	)	$	80		$	2,633		$	(342	)	$	2,629
Investing activities
Property and equipment additions	—			(32		)	(89		)	(69		)	—			(190		)
Proceeds received on asset sales	—			7			4			8			—			19
Net assets acquired (net of cash acquired)	—			—			(4		)	(51		)	—			(55		)
Intercompany loan receipts (advances)	—			—			28			(316		)	288			—
Other, net	118			(1		)	—			4			(118		)	3
Net cash provided by (used in) investing activities exclusive of vehicle programs	118			(26		)	(61		)	(424		)	170			(223		)
Vehicle programs:
Decrease in program cash	—			—			—			31			—			31
Investment in vehicles	—			(9		)	(4		)	(12,448		)	—			(12,461		)
Proceeds received on disposition of vehicles	—			31			—			10,473			—			10,504
	—			22			(4		)	(1,944		)	—			(1,926		)
Net cash provided by (used in) investing activities	118			(4		)	(65		)	(2,368		)	170			(2,149		)
Financing activities
Proceeds from long-term borrowings	—			557			—			337			—			894
Payments on long-term borrowings	—			(525		)	(5		)	(317		)	—			(847		)
Net change in short-term borrowings	—			—			—			4			—			4
Debt financing fees	—			(15		)	—			(5		)	—			(20		)
Repurchases of common stock	(387		)	—			—			—			—			(387		)
Intercompany loan borrowings (payments)	—			316			—			(28		)	(288		)	—
Other, net	—			(385		)	—			(75		)	460			—
Net cash provided by (used in) financing activities exclusive of vehicle programs	(387		)	(52		)	(5		)	(84		)	172			(356		)
Vehicle programs:
Proceeds from borrowings	—			8			—			15,761			—			15,769
Payments on borrowings	—			—			(9		)	(15,817		)	—			(15,826		)
Debt financing fees	—			—			(1		)	(24		)	—			(25		)
	—			8			(10		)	(80		)	—			(82		)
Net cash provided by (used in) financing activities	(387		)	(44		)	(15		)	(164		)	172			(438		)
Effect of changes in exchange rates on cash and cash equivalents	—			—			—			(4		)	—			(4		)
Net increase (decrease) in cash and cash equivalents	(1		)	(58		)	—			97			—			38
Cash and cash equivalents, beginning of period	4			70			—			378			—			452
Cash and cash equivalents, end of period	$	3		$	12		$	—		$	475		$	—		$	490

For the Year Ended December 31, 2015

	Parent			Subsidiary Issuers			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
Net cash provided by (used in) operating activities	$	60		$	249		$	146		$	2,204		$	(75	)	$	2,584
Investing activities
Property and equipment additions	—			(26		)	(98		)	(75		)	—			(199		)
Proceeds received on asset sales	—			7			1			7			—			15
Net assets acquired (net of cash acquired)	—			(8		)	(9		)	(239		)	—			(256		)
Intercompany loan receipts (advances)	—			(30		)	(96		)	—			126			—
Other, net	334			(127		)	1			8			(210		)	6
Net cash provided by (used in) investing activities exclusive of vehicle programs	334			(184		)	(201		)	(299		)	(84		)	(434		)
Vehicle programs:
Increase in program cash	—			—			—			(148		)	—			(148		)
Investment in vehicles	—			(1		)	(2		)	(11,925		)	—			(11,928		)
Proceeds received on disposition of vehicles	—			19			—			9,661			—			9,680
	—			18			(2		)	(2,412		)	—			(2,396		)
Net cash provided by (used in) investing activities	334			(166		)	(203		)	(2,711		)	(84		)	(2,830		)
Financing activities
Proceeds from long-term borrowings	—			375			—			2			—			377
Payments on long-term borrowings	—			(256		)	(4		)	(41		)	—			(301		)
Net change in short-term borrowings	—			—			—			(22		)	—			(22		)
Debt financing fees	—			(7		)	—			—			—			(7		)
Repurchases of common stock	(393		)	—			—			—			—			(393		)
Intercompany loan borrowings (payments)	—			—			—			126			(126		)	—
Other, net	1			(335		)	70			(28		)	285			(7		)
Net cash provided by (used in) financing activities exclusive of vehicle programs	(392		)	(223		)	66			37			159			(353		)
Vehicle programs:
Proceeds from borrowings	—			—			—			14,138			—			14,138
Payments on borrowings	—			—			(9		)	(13,639		)	—			(13,648		)
Debt financing fees	—			—			—			(22		)	—			(22		)
	—			—			(9		)	477			—			468
Net cash provided by (used in) financing activities	(392		)	(223		)	57			514			159			115
Effect of changes in exchange rates on cash and cash equivalents	—			—			—			(41		)	—			(41		)
Net decrease in cash and cash equivalents	2			(140		)	—			(34		)	—			(172		)
Cash and cash equivalents, beginning of period	2			210			—			412			—			624
Cash and cash equivalents, end of period	$	4		$	70		$	—		$	378		$	—		$	452

For the Year Ended December 31, 2014

	Parent			Subsidiary Issuers			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
Net cash provided by (used in) operating activities	$	—		$	469		$	340		$	1,840		$	(70	)	$	2,579
Investing activities
Property and equipment additions	—			(20		)	(84		)	(78		)	—			(182		)
Proceeds received on asset sales	—			7			8			6			—			21
Net assets acquired (net of cash acquired)	—			—			(263		)	(153		)	—			(416		)
Other, net	285			(9		)	(2		)	—			(285		)	(11		)
Net cash provided by (used in) investing activities exclusive of vehicle programs	285			(22		)	(341		)	(225		)	(285		)	(588		)
Vehicle programs:
Increase in program cash	—			—			—			(10		)	—			(10		)
Investment in vehicles	—			(9		)	(90		)	(11,776		)	—			(11,875		)
Proceeds received on disposition of vehicles	—			8			—			9,658			—			9,666
	—			(1		)	(90		)	(2,128		)	—			(2,219		)
Net cash provided by (used in) investing activities	285			(23		)	(431		)	(2,353		)	(285		)	(2,807		)
Financing activities
Proceeds from long-term borrowings	—			575			—			296			—			871
Payments on long-term borrowings	—			(756		)	(5		)	(1		)	—			(762		)
Net change in short-term borrowings	—			—			—			5			—			5
Debt financing fees	—			(12		)	—			(5		)	—			(17		)
Repurchases of common stock	(297		)	—			—			—			—			(297		)
Other, net	—			(285		)	—			(70		)	355			—
Net cash provided by (used in) financing activities exclusive of vehicle programs	(297		)	(478		)	(5		)	225			355			(200		)
Vehicle programs:
Proceeds from borrowings	—			—			88			14,285			—			14,373
Payments on borrowings	—			—			(3		)	(13,960		)	—			(13,963		)
Debt financing fees	—			—			(1		)	(27		)	—			(28		)
	—			—			84			298			—			382
Net cash provided by (used in) financing activities	(297		)	(478		)	79			523			355			182
Effect of changes in exchange rates on cash and cash equivalents	—			—			—			(23		)	—			(23		)
Net decrease in cash and cash equivalents	(12		)	(32		)	(12		)	(13		)	—			(69		)
Cash and cash equivalents, beginning of period	14			242			12			425			—			693
Cash and cash equivalents, end of period	$	2		$	210		$	—		$	412		$	—		$	624