Stockholders' Equity

6 Months Ended

Jun. 30, 2022

Equity [Abstract]

Stockholders' Equity

Stockholders' Equity

Share Repurchases

Our Board of Directors has authorized the repurchase of up to $7.1 billion of our common stock under a plan originally approved in 2013 and subsequently expanded most recently in May 2022 (the “Stock Repurchase Program”). During the six months ended June 30, 2022, we repurchased approximately 7.9 million shares of common stock at a cost of approximately $1.7 billion under the program. As of June 30, 2022, approximately $2.25 billion of authorization remains available to repurchase common stock under the program.

Total Comprehensive Income (Loss)

Comprehensive income (loss) consists of net income and other gains and losses affecting stockholders’ equity that, under GAAP, are excluded from net income.

The components of other comprehensive income (loss) were as follows: 

		Three Months Ended  June 30,				Six Months Ended June 30,
		2022		2021		2022		2021
Net income		$	774	$	398	$	1,301	$	228
	Less: net loss attributable to non-controlling interests	(4)		—		(6)		—
Net income attributable to Avis Budget Group, Inc.		778		398		1,307		228
Other comprehensive income (loss):
	Currency translation adjustments (net of tax of $(14), $3, $(17) and $(9), respectively)	(50)		15		(43)		1
	Net unrealized gain (loss) on cash flow hedges (net of tax of $(4), $(10), $(15) and $(7), respectively)	13		(14)		43		21
	Minimum pension liability adjustment (net of tax of $0, $0, $0 and $0, respectively)	1		1		3		4
		(36)		2		3		26
Comprehensive income attributable to Avis Budget Group, Inc.		$	742	$	400	$	1,310	$	254

__________

Currency translation adjustments exclude income taxes related to indefinite investments in foreign subsidiaries.

Accumulated Other Comprehensive Income (Loss)

The components of accumulated other comprehensive income (loss) were as follows: 

		Currency Translation Adjustments(a)		Net Unrealized Gains (Losses) on Cash Flow Hedges(b)		Minimum Pension Liability Adjustment(c)		Accumulated Other Comprehensive Income (Loss)
Balance, January 1, 2022		$	16	$	(19)	$	(130)	$	(133)
	Other comprehensive income (loss) before reclassifications	(43)		36		1		(6)
	Amounts reclassified from accumulated other comprehensive income	—		7		2		9
Net current-period other comprehensive income (loss)		(43)		43		3		3
Balance, June 30, 2022		$	(27)	$	24	$	(127)	$	(130)
Balance, January 1, 2021		$	40	$	(51)	$	(176)	$	(187)
	Other comprehensive income (loss) before reclassifications	(10)		14		1		5
	Amounts reclassified from accumulated other comprehensive income	11		7		3		21
Net current-period other comprehensive income		1		21		4		26
Balance, June 30, 2021		$	41	$	(30)	$	(172)	$	(161)

__________

All components of accumulated other comprehensive income (loss) are net of tax, except currency translation adjustments, which exclude income taxes related to indefinite investments in foreign subsidiaries and include $128 million gain, net of tax, as of June 30, 2022 related to our hedge of our investment in euro-denominated foreign operations (see Note 16 – Financial Instruments).

(a)For the six months ended June 30, 2021, the amount was reclassified from accumulated other comprehensive income (loss) into restructuring and other related charges.

(b)For the three months ended June 30, 2022 and 2021, the amounts reclassified from accumulated other comprehensive income (loss) into corporate interest expense were $4 million ($3 million, net of tax), in each period. For the three months ended June 30, 2021, the amounts reclassified from accumulated other comprehensive income (loss) into vehicle interest expense was $1 million ($1 million, net of tax). For the six months ended June 30, 2022 and 2021, the amounts reclassified from accumulated other comprehensive income (loss) into corporate interest expense was $9 million ($7 million, net of tax) and $8 million ($6 million, net of tax), respectively. For the six months ended June 30, 2021, the amounts reclassified from accumulated other comprehensive income (loss) into vehicle interest expense was $2 million ($1 million, net of tax).

(c)For the three months ended June 30, 2021, amounts reclassified from accumulated other comprehensive income (loss) into selling, general and administrative expenses was $2 million ($1 million, net of tax). For the six months ended June 30, 2022 and 2021, amounts reclassified from accumulated other comprehensive income (loss) into selling, general and administrative expenses were $3 million ($2 million, net of tax) and $5 million ($3 million, net of tax), respectively.