Stockholders' Equity

3 Months Ended

Mar. 31, 2023

Equity [Abstract]

Stockholders' Equity

Stockholders' Equity

Share Repurchases

Our Board of Directors has authorized the repurchase of up to $8.1 billion of our common stock under a plan originally approved in 2013 and subsequently expanded most recently in February 2023 (the “Stock Repurchase Program”). During the three months ended March 31, 2023, no common stock repurchases were made under the program. As of March 31, 2023, approximately $1.7 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  March 31,
		2023		2022
Net income		$	312	$	527
	Less: net income (loss) attributable to non-controlling interests	—		(2)
Net income attributable to Avis Budget Group, Inc.		312		529
Other comprehensive income (loss):
	Currency translation adjustments (net of tax of $3 and $(3), respectively)	(4)		7
	Net unrealized gain (loss) on cash flow hedges (net of tax of $2 and $(11), respectively)	(7)		30
	Minimum pension liability adjustment (net of tax of $0, in each period)	1		2
		(10)		39
Comprehensive income attributable to Avis Budget Group, Inc.		$	302	$	568

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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		Net Unrealized Gains (Losses) on Cash Flow Hedges(a)		Minimum Pension Liability Adjustment(b)		Accumulated Other Comprehensive Income (Loss)
Balance, January 1, 2023		$	(30)	$	45	$	(116)	$	(101)
	Other comprehensive income (loss) before reclassifications	(4)		(5)		—		(9)
	Amounts reclassified from accumulated other comprehensive income	—		(2)		1		(1)
Net current-period other comprehensive income (loss)		(4)		(7)		1		(10)
Balance, March 31, 2023		$	(34)	$	38	$	(115)	$	(111)
Balance, January 1, 2022		$	16	$	(19)	$	(130)	$	(133)
	Other comprehensive income (loss) before reclassifications	7		26		—		33
	Amounts reclassified from accumulated other comprehensive income	—		4		2		6
Net current-period other comprehensive income (loss)		7		30		2		39
Balance, March 31, 2022		$	23	$	11	$	(128)	$	(94)

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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 $105 million gain, net of tax, as of March 31, 2023 related to our hedge of our investment in euro-denominated foreign operations (see Note 16 – Financial Instruments).

(a)For the three months ended March 31, 2023 and 2022, the amounts reclassified from accumulated other comprehensive income (loss) into corporate interest expense were $3 million ($2 million, net of tax) and $5 million ($4 million, net of tax), respectively.

(b)For the three months ended March 31, 2023 and 2022, amounts reclassified from accumulated other comprehensive income (loss) into selling, general and administrative expenses were $1 million ($1 million, net of tax) and $3 million ($2 million, net of tax), respectively.