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Financial Instruments (Tables)
12 Months Ended
Dec. 31, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Notional Amounts of Outstanding Derivative Positions The Company held derivative instruments with absolute notional values as follows:
 
As of December 31,
 
2019
 
2018
Foreign exchange contracts
$
1,518

 
$
1,235

Interest rate caps (a)
8,625

 
8,431

Interest rate swaps
1,500

 
1,500

__________
(a) 
Represents $5.9 billion of interest rate caps sold, partially offset by approximately $2.7 billion of interest rate caps purchased at December 31, 2019 and $5.7 billion of interest rate caps sold, partially offset by approximately $2.7 billion of interest rate caps purchased at December 31, 2018. These amounts exclude $3.2 billion and $3.0 billion of interest rate caps purchased by the Company’s Avis Budget Rental Car Funding subsidiary at December 31, 2019 and 2018, respectively.
Fair Value of Derivative Instruments
Fair values (Level 2) of derivative instruments are as follows: 
 
 
As of December 31, 2019
 
As of December 31, 2018
 
 
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)
$

 
$
27

 
$
12

 
$
8

Derivatives not designated as hedging instruments
 
 
 
 
 
 
 
 
Interest rate caps (b)

 
1

 

 
2

 
Foreign exchange contracts (c)
5

 
10

 
5

 
11

 
Commodity contracts (c)

 

 

 
1

 
Total
$
5

 
$
38

 
$
17

 
$
22


__________
Amounts in this table exclude derivatives issued by Avis Budget Rental Car Funding, as it is not consolidated by the Company; however, certain amounts related to the derivatives held by Avis Budget Rental Car Funding are included within accumulated other comprehensive income (loss), as discussed in Note 16-Stockholders’ Equity.
(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.

Schedule of Effect of Derivatives Recognized
The effects of derivatives recognized in the Company’s Consolidated Financial Statements are as follows:
 
 
Year Ended December 31,
 
 
2019
 
2018
 
2017
Financial instruments designated as hedging instruments (a)
 
 
 
 
 
 
Interest rate swaps (b)
$
(23
)
 
$
(4
)
 
$
3

 
Euro-denominated notes (c)
17

 
24

 
(50
)
Financial instruments not designated as hedging instruments (d)
 
 
 
 
 
 
Foreign exchange contracts (e)
(7
)
 
31

 
(42
)
 
Interest rate caps (f)
(1
)
 
(3
)
 
(1
)
 
Commodity contracts (g)
3

 

 
(1
)
Total
$
(11
)
 
$
48

 
$
(91
)
__________ 
(a) 
Recognized, net of tax, as a component of accumulated other comprehensive income (loss) within stockholders’ equity.
(b) 
Classified as a net unrealized gain (loss) on cash flow hedges in accumulated other comprehensive income (loss). Refer to Note 16-Stockholders’ Equity for amounts reclassified from accumulated other comprehensive income (loss) into earnings.
(c) 
Classified as a net investment hedge within currency translation adjustment in accumulated other comprehensive income (loss).
(d) 
Gains (losses) related to derivative instruments are expected to be largely offset by (losses) gains on the underlying exposures being hedged.
(e) 
For the year ended December 31, 2019, included an $11 million loss included in interest expense and a $4 million gain included in operating expenses. For the year ended December 31, 2018, included a $19 million gain included in interest expense and a $12 million gain included in operating expenses. For the year ended December 31, 2017, included a $23 million loss in interest expense and a $19 million loss included in operating expenses.
(f) 
Primarily included in vehicle interest, net.
(g) 
Included in operating expenses.
Schedule of Carrying Amounts and Estimated Fair Values
Debt Instruments

The carrying amounts and estimated fair values (Level 2) of debt instruments are as follows:
 
 
As of December 31, 2019
 
As of December 31, 2018
 
 
Carrying Amount
 
Estimated Fair Value
 
Carrying Amount
 
Estimated Fair Value
Corporate debt
 
 
 
 
 
 
 
 
Short-term debt and current portion of long-term debt
$
19

 
$
19

 
$
23

 
$
23

 
Long-term debt
3,416

 
3,572

 
3,528

 
3,462

 
 
 
 
 
 
 
 
 
Debt under vehicle programs
 
 
 
 
 
 
 
 
Vehicle-backed debt due to Avis Budget Rental Car Funding
$
7,936

 
$
8,077

 
$
7,358

 
$
7,383

 
Vehicle-backed debt
3,129

 
3,142

 
2,871

 
2,881

 
Interest rate swaps and interest rate caps (a)
3

 
3

 
3

 
3

___________
(a) 
Derivatives in liability position.