Related Party Transactions

12 Months Ended

Dec. 31, 2024

Related Party Transactions [Abstract]

Related Party Transactions

Related Party Transactions

SRS Mobility Ventures, LLC

In 2021, SRS Mobility Ventures, LLC acquired a 33 1/3% Class A Membership Interest in one of our subsidiaries at fair value of $37.5 million. SRS Mobility Ventures, LLC is an affiliate of our largest shareholder, SRS Investment Management, LLC.

On September 1, 2022, through the issuance of Class B Preferred Voting Membership Interests, SRS Mobility Ventures, LLC increased their ownership in this subsidiary to 51% at fair value of $62 million. In accordance with ASC Topic 810-10-40, we must deconsolidate a subsidiary as of the date we cease to have a controlling interest in that subsidiary and recognize the gain or loss in net income at that time. The fair value of our retained investment was determined utilizing a discounted cash flow methodology based on various assumptions, including projections of future cash flows, which include forecast of future revenue and EBITDA. As a result, we deconsolidated our former subsidiary, Avis Mobility Ventures LLC (“AMV”), from our financial statements and began to report our proportional share of the former subsidiary’s income or loss within other (income) expense, net in our Consolidated Statements of Operations as we no longer had the ability to direct the significant activities of the former subsidiary and were no longer primary beneficiary of the VIE. Upon deconsolidation in 2022, our former subsidiary had a net asset carrying amount of $49 million and we recorded a gain within other (income) expense, net. In August and October 2023, SRS Mobility Ventures, LLC made capital contributions to AMV, increasing their ownership to approximately 65%. In June 2024, SRS Mobility Ventures, LLC made a capital contribution of approximately $22 million to AMV, and we simultaneously settled approximately $12 million in receivables from AMV related to services we provided. SRS Mobility Ventures, LLC’s ownership percentage remained at approximately 65% following these transactions.

We continue to provide vehicles, related fleet services, and certain administrative services to AMV to support their operations. The following table provides amounts reported within our Consolidated Balance Sheets related to our equity method investment in AMV and these services.

	As of December 31,
	2024		2023
Receivables from AMV (a)	$	3	$	2
Equity method investment in AMV (b)	28		24
Vehicles, net investment in lease with AMV (c)	74		31

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(a)    Included within other current assets.

(b)    Included within other non-current assets.

(c)    Included within vehicles, net. See Note 8 – Vehicle Rental Activities.

The components of other (income) expense, net are summarized below:

	Year Ended December 31,
	2024		2023		2022
(Income) expense for services to AMV, net	$	2	$	(22)	$	(7)
(Income) loss on equity method investment in AMV, net	7		25		10
(Gain) loss on deconsolidation of former subsidiary	—		—		(10)
Other (income) expense, net	$	9	$	3	$	(7)