Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Notional Amounts of Outstanding Derivative Positions

We held derivative instruments with absolute notional values as follows:

	As of December 31,
	2023		2022
Foreign exchange contracts	$	1,407	$	1,160
Interest rate caps (a)	15,146		14,219
Interest rate swaps	750		1,450

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(a)Represents $10.3 billion of interest rate caps sold, partially offset by approximately $4.9 billion of interest rate caps purchased at December 31, 2023 and $9.8 billion of interest rate caps sold, partially offset by approximately $4.4 billion of interest rate caps purchased at December 31, 2022. These amounts exclude $5.9 billion and $6.2 billion of interest rate caps purchased by our Avis Budget Rental Car Funding subsidiary at December 31, 2023 and 2022, respectively.

Schedule of Fair Value of Derivative Instruments

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

		As of December 31, 2023				As of December 31, 2022
		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)	$	50	$	—	$	61	$	—
Derivatives not designated as hedging instruments
	Foreign exchange contracts (b)	5		4		4		6
	Interest rate caps (c)	19		74		46		111
	Total	$	74	$	78	$	111	$	117

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Amounts in this table exclude derivatives issued by Avis Budget Rental Car Funding, as it is not consolidated by us; 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 other current assets or other current liabilities.

(c)Included in assets under vehicle programs or liabilities under vehicle programs.

Schedule of Effect of Derivatives Recognized

The effects of derivatives recognized in our Consolidated Financial Statements are as follows:

		Year Ended December 31,
		2023		2022		2021
Financial instruments designated as hedging instruments (a)
	Interest rate swaps (b)	$	(8)	$	64	$	32
	Euro-denominated notes (c)	(21)		44		56
Financial instruments not designated as hedging instruments (d)
	Foreign exchange contracts (e)	(12)		36		(3)
	Interest rate caps (f)	(1)		(1)		(1)
Total		$	(42)	$	143	$	84

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(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, 2023, included a $14 million loss in interest expense and a $2 million gain in operating expenses. For the year ended December 31, 2022, included a $39 million gain in interest expense and a $3 million loss in operating expenses. For the year ended December 31, 2021, included a $2 million loss in interest expense and a $1 million loss in operating expenses.

(f)Primarily included in vehicle interest, net.

Schedule of Carrying Amounts and Estimated Fair Values

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

		As of December 31, 2023				As of December 31, 2022
		Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Corporate debt
	Short-term debt and current portion of long-term debt	$	32	$	32	$	27	$	26
	Long-term debt	4,791		4,812		4,644		4,411
Debt under vehicle programs
	Vehicle-backed debt due to Avis Budget Rental Car Funding	$	15,441	$	15,238	$	11,275	$	10,848
	Vehicle-backed debt	3,422		3,435		2,423		2,422
	Interest rate swaps and interest rate caps (a)	74		74		111		111

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(a)Derivatives in liability position.