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Financial Instruments (Tables)
 9 Months Ended
Sep. 30, 2012
Schedule Of Carrying Amounts And Estimated Fair Values

The carrying amounts and estimated fair values of debt instruments are as follows:

 

     As of September 30, 2012      As of December 31, 2011  
     Carrying
Amount		      Estimated
Fair
Value		      Carrying
Amount		      Estimated
Fair
Value		  

Corporate debt

            

Short-term debt and current portion of long-term debt (a)

    $ 81       $ 81       $ 37       $ 37   

Long-term debt, excluding convertible debt (a)

      2,742         2,919         2,823         2,842   

Convertible debt (a)

      144         175         345         354   

Debt under vehicle programs

            

Vehicle-backed debt due to Avis Budget Rental Car Funding (AESOP) LLC (a)

    $ 5,813       $ 6,026       $ 4,574       $ 4,643   

Vehicle-backed debt (a)

      2,061         2,076         986         1,001   

Interest rate swaps and interest rate contracts (b)

      1         1         4         4   

 

(a) 

The fair value measurements are based on significant observable inputs (Level 2).
(b) 

Derivatives in a liability position.
Fair Value Of Derivative Instruments

Fair values of derivative instruments are as follows:

 

     As of
September 30, 2012		      As of
December 31, 2011		  
     Fair Value,
Asset
Derivatives		      Fair Value,
Liability
Derivatives		      Fair Value,
Asset
Derivatives		      Fair Value,
Liability
Derivatives		  

Derivatives designated as hedging instruments (a)

            

Interest rate swaps (b)

    $ —         $ 2       $ —         $ 3   

Derivatives not designated as hedging instruments (a)

            

Foreign exchange forward contracts (c)

      3         8         26         1   

Interest rate contracts (d)

      1         1         2         4   

Interest rate swaps (b)

      —           12         —           —     

Commodity contracts (c)

      1         —           —           1   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ 5       $ 23       $ 28       $ 9   
  

 

 

     

 

 

     

 

 

     

 

 

  

 

(a) 

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, as discussed in Note 14—Stockholders’ Equity.
(b) 

Included in other non-current liabilities.
(c) 

Included in other current assets and other current liabilities.
(d) 

Included in assets under vehicle programs and liabilities under vehicle programs.
Schedule Of Effect Of Derivatives Recognized

The effect of derivatives recognized in the Company’s Consolidated Condensed Financial Statements are as follows:

 

     Three Months  Ended
September 30,		     Nine Months  Ended
September 30,		  
     2012     2011     2012     2011  

Derivatives designated as hedging instruments

         

Interest rate swaps (a)

    $ —      $ 8      $ 11      $ 24   

Derivatives not designated as hedging instruments

         

Foreign exchange contracts (b)

      (2 )      (13 )      —          (29 ) 

Commodity contracts (c)

      3        (3 )      4        (2 ) 

Interest rate contracts (d)

      (5 )      —          (13 )      (1 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Total

    $ (4 )    $ (8 )    $ 2      $ (8 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

 

(a) 

Recognized, net of tax, as a component of other comprehensive income within stockholders’ equity.
(b) 

For the three and nine months ended September 30, 2012, amounts are included in operating expenses. For the three months ended September 30, 2011, includes $14 million loss in transaction-related costs and a $1 million gain in operating expenses. For the nine months ended September 30, 2011, includes a $31 million loss in transaction-related costs and a $2 million gain in operating expenses.
(c) 

Included in operating expenses.
(d) 

Included in interest expense.