22.

Guarantor and Non-Guarantor Consolidating Financial Statements

The following consolidating financial information presents Consolidating Condensed Statements of Operations for the years ended December 31, 2012, 2011 and 2010, Consolidating Condensed Balance Sheets as of December 31, 2012 and December 31, 2011 and Consolidating Condensed Statements of Cash Flows for the years ended December 31, 2012, 2011 and 2010 for: (i) Avis Budget Group, Inc. (the “Parent”); (ii) Avis Budget Car Rental and Avis Budget Finance, Inc. (the “Subsidiary Issuers”); (iii) the guarantor subsidiaries; (iv) the non-guarantor subsidiaries; (v) elimination entries necessary to consolidate the Parent with the Subsidiary Issuers, the guarantor and non-guarantor subsidiaries; and (vi) the Company on a consolidated basis. The Subsidiary Issuers and the guarantor and non-guarantor subsidiaries are 100% owned by the Parent, either directly or indirectly. All guarantees are full and unconditional and joint and several. This financial information is being presented in relation to the Company’s guarantee of the payment of principal, premium (if any) and interest on the notes that have been guaranteed. See Note 14—Long-term Debt and Borrowing Arrangements for additional description of these guaranteed notes. The Senior Notes have separate investors than the equity investors of the Company and are guaranteed by the Parent and certain subsidiaries.

Investments in subsidiaries are accounted for using the equity method of accounting for purposes of the consolidating presentation. The principal elimination entries relate to investments in subsidiaries and intercompany balances and transactions. For purposes of the accompanying Consolidating Condensed Statements of Operations, certain expenses incurred by the Subsidiary Issuers are allocated to the guarantor and non-guarantor subsidiaries.

Consolidating Condensed Statements of Operations

For the Year Ended December 31, 2012


	Parent		Subsidiary Issuers		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		Total
Revenues
Vehicle rental	$	-	$	-	$	3,491	$	1,806	$	-	$	5,297
Other		1		-		1,052		2,130		(1,123)		2,060

Net revenues		1		-		4,543		3,936		(1,123)		7,357


Expenses
Operating		-		5		2,305		1,514		-		3,824
Vehicle depreciation and lease charges, net		-		-		902		996		(427)		1,471
Selling, general and administrative		21		-		573		331		-		925
Vehicle interest, net		-		-		234		300		(237)		297
Non-vehicle related depreciation and amortization		-		2		75		48		-		125
Interest expense related to corporate debt, net:
Interest expense		9		246		-		13		-		268
Intercompany interest expense (income)		(18)		(314)		277		55		-		-
Early extinguishment of debt		44		31		-		-		-		75
Transaction-related costs		4		1		1		28		-		34
Restructuring charges		-		-		3		35		-		38


Total expenses		60		(29)		4,370		3,320		(664)		7,057

Income (loss) before income taxes and equity in earnings of subsidiaries		(59)		29		173		616		(459)		300
Provision for (benefit) from income taxes		(8)		(106)		72		52		-		10
Equity in earnings (loss) of subsidiaries		341		206		105		-		(652)		-

Net income (loss)	$	290	$	341	$	206	$	564	$	(1,111)	$	290


Comprehensive income	$	322	$	373	$	237	$	594	$	(1,204)	$	322

For the Year Ended December 31, 2011


	Parent		Subsidiary Issuers		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		Total
Revenues
Vehicle rental	$	-	$	-	$	3,393	$	945	$	-	$	4,338
Other		2		-		1,006		1,702		(1,148)		1,562

Net revenues		2		-		4,399		2,647		(1,148)		5,900


Expenses
Operating		3		8		2,241		773		-		3,025
Vehicle depreciation and lease charges, net		-		-		921		868		(566)		1,223
Selling, general and administrative		11		-		564		181		-		756
Vehicle interest, net		-		(1)		243		296		(252)		286
Non-vehicle related depreciation and amortization		-		-		78		17		-		95
Interest expense related to corporate debt, net:
Interest expense		10		208		-		1		-		219
Intercompany interest expense (income)		(14)		(205)		215		4		-		-
Transaction-related costs		71		56		-		128		-		255
Restructuring charges		-		-		2		3		-		5


Total expenses		81		66		4,264		2,271		(818)		5,864

Income (loss) before income taxes and equity in earnings of subsidiaries		(79)		(66)		135		376		(330)		36
Provision for (benefit) from income taxes		(27)		(22)		66		48		-		65
Equity in earnings (loss) of subsidiaries		23		67		(2)		-		(88)		-

Net income (loss)	$	(29)	$	23	$	67	$	328	$	(418)	$	(29)


Comprehensive income	$	(43)	$	7	$	50	$	358	$	(415)	$	(43)

For the Year Ended December 31, 2010


	Parent		Subsidiary Issuers		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		Total
Revenues
Vehicle rental	$	-	$	-	$	3,261	$	621	$	-	$	3,882
Other		4		-		922		1,672		(1,295)		1,303

Net revenues		4		-		4,183		2,293		(1,295)		5,185


Expenses
Operating		5		8		2,084		519		-		2,616
Vehicle depreciation and lease charges, net		-		-		1,085		1,070		(868)		1,287
Selling, general and administrative		11		-		473		85		-		569
Vehicle interest, net		-		-		283		146		(125)		304
Non-vehicle related depreciation and amortization		-		-		83		7		-		90
Interest expense related to corporate debt, net:
Interest expense		9		163		-		(2)		-		170
Intercompany interest expense (income)		(14)		(215)		229		-		-		-
Early extinguishment of debt		-		52		-		-		-		52
Transaction-related costs		14		-		-		-		-		14
Restructuring charges		-		-		11		-		-		11


Total expenses		25		8		4,248		1,825		(993)		5,113

Income (loss) before income taxes and equity in earnings of subsidiaries		(21)		(8)		(65)		468		(302)		72
Provision for (benefit) from income taxes		(9)		(8)		(5)		40		-		18
Equity in earnings (loss) of subsidiaries		66		66		126		-		(258)		-

Net income (loss)	$	54	$	66	$	66	$	428	$	(560)	$	54


Comprehensive income	$	183	$	195	$	174	$	542	$	(911)	$	183

Consolidating Condensed Balance Sheets

As of December 31, 2012


	Parent		Subsidiary Issuers		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		Total
Assets
Current assets:
Cash and cash equivalents	$	5	$	102	$	-	$	499	$	-	$	606
Receivables, net		-		-		156		397		-		553
Deferred income taxes		3		1		138		4		-		146
Other current assets		5		73		81		246		-		405

Total current assets		13		176		375		1,146		-		1,710


Property and equipment, net		-		90		276		163		-		529
Deferred income taxes		23		1,216		223		-		(8)		1,454
Goodwill		-		-		74		301		-		375
Other intangibles, net		-		43		341		347		-		731
Other non-current assets		109		80		14		117		-		320
Intercompany receivables (payables)		142		141		174		(457)		-		-
Investment in subsidiaries		723		2,030		3,293		-		(6,046)		-

Total assets exclusive of assets under vehicle programs		1,010		3,776		4,770		1,617		(6,054)		5,119


Assets under vehicle programs:
Program cash		-		-		-		24		-		24
Vehicles, net		-		7		13		9,254		-		9,274
Receivables from vehicle manufacturers and other		-		-		-		439		-		439
Investment in Avis Budget Rental Car Funding (AESOP) LLC-related party		-		-		-		362		-		362

		-		7		13		10,079		-		10,099

Total Assets	$	1,010	$	3,783	$	4,783	$	11,696	$	(6,054)	$	15,218


Liabilities and stockholders’ equity
Current liabilities:
Accounts payable and other current liabilities	$	22	$	250	$	490	$	659	$	-	$	1,421
Short-term debt and current portion of long-term debt		-		13		3		41		-		57

Total current liabilities		22		263		493		700		-		1,478

Long-term debt		128		2,712		8		-		-		2,848
Other non-current liabilities		103		79		277		420		(8)		871

Total liabilities exclusive of liabilities under vehicle programs		253		3,054		778		1,120		(8)		5,197


Liabilities under vehicle programs:
Debt		-		4		-		1,599		-		1,603
Due to Avis Budget Rental Car Funding (AESOP) LLC-related party		-		-		-		5,203		-		5,203
Deferred income taxes		-		-		1,975		188		-		2,163
Other		-		2		-		293		-		295

		-		6		1,975		7,283		-		9,264

Total stockholders’ equity		757		723		2,030		3,293		(6,046)		757

Total liabilities and stockholder’s equity	$	1,010	$	3,783	$	4,783	$	11,696	$	(6,054)	$	15,218

As of December 31, 2011


	Parent		Subsidiary Issuers		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		Total
Assets
Current assets:
Cash and cash equivalents	$	2	$	234	$	1	$	297	$	-	$	534
Receivables, net		-		61		140		306		-		507
Deferred income taxes		8		-		129		3		(20)		120
Other current assets		7		63		76		251		(17)		380

Total current assets		17		358		346		857		(37)		1,541


Property and equipment, net		-		70		295		128		-		493
Deferred income taxes		36		177		229		2		-		444
Goodwill		-		-		74		279		-		353
Other intangibles, net		-		44		342		327		-		713
Other non-current assets		124		92		5		83		-		304
Intercompany receivables (payables)		348		1,158		(1,071)		(435)		-		-
Investment in subsidiaries		376		1,769		3,192		-		(5,337)		-

Total assets exclusive of assets under vehicle programs		901		3,668		3,412		1,241		(5,374)		3,848


Assets under vehicle programs:
Program cash		-		-		-		11		-		11
Vehicles, net		-		6		4		8,346		-		8,356
Receivables from vehicle manufacturers and other		-		-		-		380		-		380
Investment in Avis Budget Rental Car Funding (AESOP) LLC-related party		-		-		-		343		-		343

		-		6		4		9,080		-		9,090

Total Assets	$	901	$	3,674	$	3,416	$	10,321	$	(5,374)	$	12,938


Liabilities and stockholders’ equity
Current liabilities:
Accounts payable and other current liabilities	$	32	$	284	$	531	$	620	$	(34)	$	1,433
Short-term debt and current portion of long-term debt		-		8		2		27		-		37

Total current liabilities		32		292		533		647		(34)		1,470

Long-term debt		345		2,814		9		-		-		3,168
Other non-current liabilities		112		211		262		375		-		960

Total liabilities exclusive of liabilities under vehicle programs		489		3,317		804		1,022		(34)		5,598


Liabilities under vehicle programs:
Debt		-		3		-		987		-		990
Due to Avis Budget Rental Car Funding (AESOP) LLC-related party		-		-		-		4,574		-		4,574
Deferred income taxes		-		-		843		139		-		982
Other		-		-		-		382		-		382

		-		3		843		6,082		-		6,928

Total stockholders’ equity		412		354		1,769		3,217		(5,340)		412

Total liabilities and stockholder’s equity	$	901	$	3,674	$	3,416	$	10,321	$	(5,374)	$	12,938

Consolidating Condensed Statements of Cash Flows

For the Year Ended December 31, 2012


	Parent		Subsidiary Issuers		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		Total
Net cash provided by (used in) operating activities	$	(33)	$	262	$	10	$	1,650	$	-	$	1,889

Investing activities
Property and equipment additions		-		(26)		(43)		(63)		-		(132)
Proceeds received on asset sales		-		8		3		10		-		21
Net assets acquired		-		-		(1)		(68)		-		(69)
Other, net		4		(4)		(1)		(8)		-		(9)

Net cash (used in) investing activities exclusive of vehicle programs		4		(22)		(42)		(129)		-		(189)

Vehicle programs:
Decrease in program cash		-		-		-		(13)		-		(13)
Investment in vehicles		-		(4)		(20)		(11,043)		-		(11,067)
Proceeds received on disposition of vehicles		-		3		2		9,191		-		9,196

		-		(1)		(18)		(1,865)		-		(1,884)

Net cash provided by (used in) investing activities		4		(23)		(60)		(1,994)		-		(2,073)


Financing activities
Proceeds from long-term borrowings		-		1,152		-		-		-		1,152
Principal payments on long-term borrowings		(222)		(1,268)		(11)		-		-		(1,501)
Net change in short term borrowings		-		-		-		10		-		10
Debt financing fees		-		(16)		-		-		-		(16)
Purchase of warrants		(29)		-		-		-		-		(29)
Proceeds from sale of call options		43		-		-		-		-		43
Net intercompany transactions		239		(239)		60		(60)		-		-
Other, net		1		-		-		-		-		1

Net cash provided by (used in) financing activities exclusive of vehicle programs		32		(371)		49		(50)		-		(340)


Vehicle programs:
Proceeds from borrowings		-		-		-		12,108		-		12,108
Principal payments on borrowings		-		-		-		(11,490)		-		(11,490)
Debt financing fees		-		-		-		(28)		-		(28)

		-		-		-		590		-		590

Net cash provided by (used in) financing activities		32		(371)		49		540		-		250

Effect of changes in exchange rates on cash and cash equivalents		-		-		-		6		-		6

Net increase (decrease) in cash and cash equivalents		3		(132)		(1)		202		-		72
Cash and cash equivalents, beginning of period		2		234		1		297		-		534

Cash and cash equivalents, end of period	$	5	$	102	$	-	$	499	$	-	$	606

For the Year Ended December 31, 2011


	Parent		Subsidiary Issuers		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		Total
Net cash provided by (used in) operating activities	$	(32)	$	(1,241)	$	(291)	$	2,661	$	481	$	1,578

Investing activities
Property and equipment additions		-		(17)		(34)		(14)		-		(65)

Proceeds received on asset sales		-		10		2		2		-		14
Net assets acquired (net of cash acquired) and acquisition-related payments		-		-		(1)		(840)		-		(841)
Other, net		(2)		(1)		-		(4)		-		(7)

Net cash (used in) investing activities exclusive of vehicle programs		(2)		(8)		(33)		(856)		-		(899)

Vehicle programs:
Decrease in program cash		-		-		-		(11)		-		(11)
Investment in vehicles		-		(73)		(3)		(8,583)		-		(8,659)
Proceeds received on disposition of vehicles		-		11		7		7,178		-		7,196
Investment in debt securities of AESOP – related party		(400)		-		-		-		-		(400)
Investment in debt securities of AESOP – related party		400		-		-		-		-		400

		-		(62)		4		(1,416)		-		(1,474)

Net cash provided by (used in) investing activities		(2)		(70)		(29)		(2,272)		-		(2,373)


Financing activities
Proceeds from borrowings		-		682		-		-		-		682
Principal payments on borrowings		-		(4)		(4)		(660)		-		(668)
Net change in short-term borrowings		-		-		-		(97)		-		(97)
Net intercompany transactions		(184)		396		323		(54)		(481)		-
Debt financing fees		(38)		(40)		-		-		-		(78)
Other, net		1		-		-		-		-		1

Net cash provided by (used in) financing activities exclusive of vehicle programs		(221)		1,034		319		(811)		(481)		(160)


Vehicle programs:
Proceeds from borrowings		-		-		-		10,534		-		10,534
Principal payments on borrowings		-		-		-		(9,917)		-		(9,917)
Debt financing fees		-		(2)		(1)		(30)		-		(33)

		-		(2)		(1)		587		-		584

Net cash provided by (used in) financing activities		(221)		1,032		318		(224)		(481)		424

Effect of changes in exchange rates on cash and cash equivalents		-		-		-		(6)		-		(6)

Net increase (decrease) in cash and cash equivalents		(255)		(279)		(2)		159		-		(377)
Cash and cash equivalents, beginning of period		257		513		3		138		-		911

Cash and cash equivalents, end of period	$	2	$	234	$	1	$	297	$	-	$	534

For the Year Ended December 31, 2010


	Parent		Subsidiary Issuers		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		Total
Net cash provided by (used in) operating activities	$	72	$	61	$	(263)	$	1,470	$	300	$	1,640

Investing activities
Property and equipment additions		-		(13)		(42)		(6)		-		(61)
Proceeds received on asset sales		-		12		-		2		-		14
Net assets acquired (net of cash acquired) and acquisition-related payments		-		-		-		(2)		-		(2)
Other, net		(3)		(3)		-		-		-		(6)

Net cash (used in) investing activities exclusive of vehicle programs		(3)		(4)		(42)		(6)		-		(55)

Vehicle programs:										-
Decrease in program cash		-		-		-		162		-		162
Investment in vehicles		-		(20)		-		(8,011)		-		(8,031)
Proceeds received on disposition of vehicles		-		34		9		6,276		-		6,319
Investment in debt securities of AESOP – related party		(570)		-		-		-		-		(570)
Investment in debt securities of AESOP – related party		570		-		-		-		-		570
Other, net		-		-		-		2		-		2

		-		14		9		(1,571)		-		(1,548)

Net cash provided by (used in) investing activities		(3)		10		(33)		(1,577)		-		(1,603)


Financing activities										-
Proceeds from borrowings		-		1,046		-		-		-		1,046
Principal payments on borrowings		-		(684)		(4)		-		-		(688)
Net intercompany transactions		(62)		80		332		(50)		(300)		-
Debt financing fees		-		(46)		-		-		-		(46)
Other, net		8		2		-		-		-		10

Net cash provided by (used in) financing activities exclusive of vehicle programs		(54)		398		328		(50)		(300)		322


Vehicle programs:
Proceeds from borrowings		-		-		-		9,355		-		9,355
Principal payments on borrowings		-		(1)		(31)		(9,120)		-		(9,152)
Net change in short-term borrowings		-		-		-		(110)		-		(110)
Debt financing fees		-		(25)		(5)		(5)		-		(35)

		-		(26)		(36)		120		-		58

Net cash provided by (used in) financing activities		(54)		372		292		70		(300)		380

Effect of changes in exchange rates on cash and cash equivalents		-		-		-		12		-		12

Net increase (decrease) in cash and cash equivalents		15		443		(4)		(25)		-		429
Cash and cash equivalents, beginning of period		242		70		7		163		-		482

Cash and cash equivalents, end of period	$	257	$	513	$	3	$	138	$	-	$	911