Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2017	Jan. 31, 2018	Jun. 30, 2017
Document Documentand Entity Information [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2017
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	FY
Trading Symbol	CAR
Entity Registrant Name	AVIS BUDGET GROUP, INC.
Entity Central Index Key	0000723612
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		80,952,244
Entity Public Float			$ 2,222,192,349

Consolidated Statements Of Operations - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Revenues
Vehicle rental									$ 6,219	$ 6,081	$ 6,026
Other									2,629	2,578	2,476
Net revenues									8,848	8,659	8,502
Expenses
Operating									4,472	4,382	4,284
Vehicle depreciation and lease charges, net									2,221	2,047	1,933
Selling, general and administrative									1,120	1,134	1,093
Vehicle interest, net									286	284	289
Non-vehicle related depreciation and amortization									259	253	218
Interest expense related to corporate debt, net:
Interest expense									188	203	194
Early extinguishment of debt									3	27	23
Restructuring and other related charges									63	29	18
Impairment									23	21	68
Asset Impairment Charges									2	0	0
Total expenses									8,637	8,380	8,120
Income before income taxes									211	279	382
Provision for (benefit from) income taxes									(150)	116	69
Net income									$ 361	$ 163	$ 313
Earnings per share
Basic	$ 2.70	$ 2.96	$ 0.04	$ (1.25)	$ (0.35)	$ 2.32	$ 0.39	$ (0.53)	$ 4.32	$ 1.78	$ 3.02
Diluted	$ 2.65	$ 2.91	$ 0.04	$ (1.25)	$ (0.35)	$ 2.28	$ 0.38	$ (0.53)	$ 4.25	$ 1.75	$ 2.98

Consolidated Statements Of Comprehensive Income - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Statement of Comprehensive Income [Abstract]
Net income	$ 361	$ 163	$ 313
Other comprehensive income (loss), net of tax
Currency translation adjustments, net of tax of $33, $(9) and $(22), respectively	110	41	(131)
Available-for-sale securities:
Net unrealized gains (losses) on available-for-sale securities, net of tax of $(1), $(1),and $1, respectively	1	1	(2)
Cash flow hedges:
Net unrealized holding gains (losses), net of tax of $0, $(1), and $4, respectively	1	0	(6)
Reclassification of cash flow hedges to earnings, net of tax of $(2), $(2) and $(3), respectively	2	4	5
Minimum pension liability adjustment:
Pension and post-retirement benefits, net of tax of $(4), $21 and $(1), respectively	11	(57)	6
Reclassification of pension and post-retirement benefits to earnings, net of tax of $(3), $(2) and $(2), respectively	5	4	3
Other comprehensive income (loss)	130	(7)	(125)
Total comprehensive income	$ 491	$ 156	$ 188

Consolidated Statements Of Comprehensive Income (Parenthetical) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Statement of Comprehensive Income [Abstract]
Other Comprehensive Income (Loss), Foreign Currency Translation Gain (Loss) Arising During Period, Tax	$ 33	$ (9)	$ (22)
Net Unrealized gains (losses) on available-for-sale securities, tax	(1)	(1)	1
Net unrealized holding losses arising during period,tax	0	(1)	4
Cash flow hedges reclassified to earnings, tax	(2)	(2)	(3)
Pension and post retirement benefits, tax	(4)	21	(1)
Pension and post retirement benefits reclassified to earnings, tax	$ (3)	$ (2)	$ (2)

Consolidated Balance Sheets - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 611	$ 490
Receivables (net of allowance for doubtful accounts of $36 and $38, respectively)	922	808
Other current assets	533	519
Total current assets	2,066	1,817
Property and equipment, net	704	685
Deferred income taxes	931	1,493
Goodwill	1,073	1,007
Other intangibles, net	850	870
Other non-current assets	196	193
Total assets exclusive of assets under vehicle programs	5,820	6,065
Assets under vehicle programs:
Program cash	283	225
Vehicles, net	10,626	10,464
Receivables from vehicle manufacturers and other	547	527
Investment in Avis Budget Rental Car Funding (AESOP) LLC—related party	423	362
Assets under vehicle programs	11,879	11,578
Total assets	17,699	17,643
Current liabilities:
Accounts payable and other current liabilities	1,619	1,488
Short-term debt and current portion of long-term debt	26	279
Total current liabilities	1,645	1,767
Long-term debt	3,573	3,244
Other non-current liabilities	717	764
Total liabilities exclusive of liabilities under vehicle programs	5,935	5,775
Liabilities under vehicle programs:
Debt	2,741	2,183
Debt due to Avis Budget Rental Car Funding (AESOP) LLC—related party	6,480	6,695
Deferred income taxes	1,594	2,429
Other	376	340
Total Liabilities under vehicle programs	11,191	11,647
Commitments and Contingencies
Stockholders' equity:
Preferred stock, $.01 par value—authorized 10 shares; none issued and outstanding	0	0
Common stock, $.01 par value—authorized 250 shares; issued 137 shares, respectively	1	1
Additional paid-in capital	6,820	6,918
Accumulated deficit	(1,222)	(1,639)
Accumulated other comprehensive loss	(24)	(154)
Treasury stock, at cost—56 and 51 shares, respectively	(5,002)	(4,905)
Total stockholders’ equity	573	221
Total liabilities and stockholders’ equity	$ 17,699	$ 17,643

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Receivables, allowance for doubtful accounts	$ 36	$ 38
Preferred stock,par value	$ 0.01	$ 0.01
Preferred stock,shares authorized	10,000,000	10,000,000
Preferred stock,shares issued	0	0
Preferred stock,shares outstanding	0	0
Common stock,par value	$ 0.01	$ 0.01
Common stock,shares authorized	250,000,000	250,000,000
Common stock,shares issued	137,000,000	137,000,000
Treasury stock,shares	56,000,000	51,000,000

Consolidated Statements Of Cash Flows - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Statement of Cash Flows [Abstract]
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	$ 901	$ 720	$ 717
Operating activities
Net income	361	163	313
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Vehicle depreciation	1,947	1,877	1,837
(Gain) loss on sale of vehicles, net	52	(10)	(60)
Non-vehicle related depreciation and amortization	259	253	218
Deferred income taxes	(192)	51	58
Stock-based compensation	13	27	28
Amortization of debt financing fees	34	37	42
Early extinguishment of debt costs	3	27	23
Net change in assets and liabilities, excluding the impact of acquisitions and dispositions:
Receivables	(59)	(65)	(42)
Income taxes	(16)	5	(18)
Accounts payable and other current liabilities	49	2	(36)
Other, net	197	273	264
Net cash provided by operating activities	2,648	2,640	2,627
Investing activities
Property and equipment additions	(197)	(190)	(199)
Proceeds received on asset sales	8	19	15
Net assets acquired (net of cash acquired)	(21)	(55)	(256)
Other, net	5	1	3
Net cash used in investing activities exclusive of vehicle programs	(205)	(225)	(437)
Vehicle programs:
Investment in vehicles	(11,538)	(12,461)	(11,928)
Proceeds received on disposition of vehicles	9,600	10,504	9,680
Repayments of Related Party Debt	(61)	0	0
Net Cash Used In Investing Activities Of Vehicle Programs	(1,999)	(1,957)	(2,248)
Net cash used in investing activities	(2,204)	(2,182)	(2,685)
Financing activities
Proceeds from long-term borrowings	589	894	377
Payments on long-term borrowings	(602)	(847)	(301)
Net change in short-term borrowings	(4)	4	(22)
Debt financing fees	(9)	(20)	(7)
Repurchases of common stock	(210)	(398)	(436)
Other, net	1	0	(7)
Net cash used in financing activities exclusive of vehicle programs	(235)	(367)	(396)
Vehicle programs:
Proceeds from borrowings	17,212	15,769	14,138
Payments on borrowings	(17,269)	(15,826)	(13,648)
Debt financing fees	(16)	(25)	(22)
Net cash provided by financing activities of vehicle programs	(73)	(82)	468
Net cash provided by (used in) financing activities	(308)	(449)	72
Effect of changes in exchange rates on cash and cash equivalents, program and restricted cash	45	(6)	(50)
Net increase (decrease) in cash and cash equivalents, program and restricted cash	181	3	(36)
Cash and cash equivalents, program and restricted cash, end of period	611	490
Supplemental Disclosure
Interest payments	460	461	454
Income tax payments, net	$ 58	$ 60	$ 29

Consolidated Statements Of Stockholders' Equity - USD ($) shares in Thousands, $ in Millions	Total	Additional Paid-in Capital [Member]	Treasury Stock [Member]	Common Stock [Member]	Accumulated Deficit	AOCI Attributable to Parent [Member]
Comprehensive income (loss):
Shares, Issued			(31,400)	(137,100)
Stock Issued During Period, Value, Stock Options Exercised	$ 0.0	$ (3.0)	$ (3.0)
Excess Tax Benefit from Share-based Compensation, Financing Activities	(7.0)	7.0	0.0
Stock Issued During Period, Value, Employee Stock Purchase Plan	0.0	(1.0)	(1.0)
Balance at Dec. 31, 2014	(665.0)	(7,212.0)	$ 4,411.0	$ (1.0)	$ 2,115.0	$ (22.0)
Comprehensive income (loss):
Net income	313.0				313.0
Other comprehensive income (loss)	(125.0)					(125.0)
Number of Options - Exercised			0
Treasury Stock, Shares, Acquired			8,800
Treasury Stock, Value, Acquired, Cost Method	(394.0)		$ (394.0)
Balance at Dec. 31, 2015	(439.0)	(7,010.0)	4,623.0	(1.0)	1,802.0	147.0
Comprehensive income (loss):
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest	188.0
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures	(13.0)	(191.0)	$ 178.0
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures			900
Balance at Dec. 31, 2014	$ (665.0)	(7,212.0)	$ 4,411.0	(1.0)	2,115.0	(22.0)
Comprehensive income (loss):
Treasury Stock, Shares, Acquired	27,000
Treasury Stock, Value, Acquired, Cost Method	$ (1,000.0)
Balance at Dec. 31, 2017	(573.0)	(6,820.0)	$ 5,002.0	$ (1.0)	1,222.0	24.0
Comprehensive income (loss):
Shares, Issued			(39,300)	(137,100)
Stock Issued During Period, Value, Stock Options Exercised	0.0	(2.0)	$ (2.0)
Excess Tax Benefit from Share-based Compensation, Financing Activities	5.0	5.0	0.0
Stock Issued During Period, Value, Employee Stock Purchase Plan	(1.0)	1.0	(2.0)
Balance at Dec. 31, 2015	(439.0)	(7,010.0)	$ 4,623.0	$ (1.0)	1,802.0	147.0
Comprehensive income (loss):
Net income	163.0				163.0
Other comprehensive income (loss)	(7.0)					(7.0)
Number of Options - Exercised			0
Treasury Stock, Shares, Acquired			12,300
Treasury Stock, Value, Acquired, Cost Method	(390.0)		$ (390.0)
Balance at Dec. 31, 2016	(221.0)	(6,918.0)	4,905.0	$ (1.0)	1,639.0	154.0
Comprehensive income (loss):
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest	156.0
Stockholders' Equity Attributable to Noncontrolling Interest	5.0	5.0
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures	15.0	(89.0)	$ 104.0
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures			500
Shares, Issued			(51,100)	(137,100)
Stock Issued During Period, Value, Stock Options Exercised	0.0	(48.0)	$ (48.0)
Stock Issued During Period, Value, Employee Stock Purchase Plan	0.0	1.0	$ (1.0)
Net income	361.0
Other comprehensive income (loss)	$ 130.0
Number of Options - Exercised	537		500
Treasury Stock, Shares, Acquired			6,100
Treasury Stock, Value, Acquired, Cost Method	$ (200.0)		$ (200.0)
Balance at Dec. 31, 2017	(573.0)	(6,820.0)	5,002.0	$ (1.0)	1,222.0	$ 24.0
Comprehensive income (loss):
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest	491.0
Stockholders' Equity Attributable to Noncontrolling Interest	1.0	1.0
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures	4.0	$ (50.0)	$ 54.0
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures			400
Cumulative Effect of New Accounting Principle in Period of Adoption	$ 56.0				$ 56.0
Shares, Issued			(56,300)	(137,100)

Basis of Presentation

12 Months Ended

Dec. 31, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation


1.	Basis of Presentation

Avis Budget Group, Inc. provides vehicle rental and other mobility solutions to businesses and consumers worldwide. The accompanying Consolidated Financial Statements include the accounts and transactions of Avis Budget Group, Inc. and its subsidiaries, as well as entities in which Avis Budget Group, Inc. directly or indirectly has a controlling financial interest (collectively, the “Company”).

The Company operates the following reportable business segments:


•	Americas—consisting primarily of (i) vehicle rental operations in North America, South America, Central America and the Caribbean, (ii) car sharing operations in certain of these markets, and (iii) licensees in the areas in which the Company does not operate directly.


•	International—consisting primarily of (i) vehicle rental operations in Europe, the Middle East, Africa, Asia and Australasia, (ii) car sharing operations in certain of these markets, and (iii) licensees in the areas in which the Company does not operate directly.

The Company has completed the business acquisitions discussed in Note 5 to these Consolidated Financial Statements. The operating results of the acquired businesses are included in the accompanying Consolidated Financial Statements from the dates of acquisition.

The Company presents separately the financial data of its vehicle programs. These programs are distinct from the Company’s other activities since the assets under vehicle programs are generally funded through the issuance of debt that is collateralized by such assets. The income generated by these assets is used, in part, to repay the principal and interest associated with the debt. Cash inflows and outflows relating to the acquisition of such assets and the principal debt repayment or financing of such assets are classified as activities of the Company’s vehicle programs. The Company believes it is appropriate to segregate the financial data of its vehicle programs because, ultimately, the source of repayment of such debt is the realization of such assets.

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2017

Accounting Policies [Abstract]

Summary of Significant Accounting Policies


2.	Summary of Significant Accounting Policies

Accounting Principles

The Company’s Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”).

Principles of Consolidation

The Consolidated Financial Statements include the accounts of the Company and all entities in which it has a direct or indirect controlling financial interest and variable interest entities for which the Company has determined it is the primary beneficiary. Intercompany transactions have been eliminated in consolidation.

Reclassifications

Certain reclassifications have been made to prior years’ Consolidated Financial Statements to conform to the current year presentation. These reclassifications have no impact on reported net income (see “Adoption of New Accounting Pronouncements” below).

Use of Estimates and Assumptions

The use of estimates and assumptions as determined by management is required in the preparation of the Consolidated Financial Statements in conformity with GAAP. These estimates are based on management’s evaluation of historical trends and other information available when the Consolidated Financial Statements are prepared and may affect the amounts reported and related disclosures. Actual results could differ from those estimates.

Revenue Recognition

The Company derives revenue primarily through the operation and licensing of its rental systems and by providing vehicle rentals and other services to business and leisure travelers and others. Other revenue includes sales of loss damage waivers and insurance products, fuel and fuel service charges, and rentals of other supplemental items. Revenue is recognized when persuasive evidence of an arrangement exists, the services have been rendered to customers, the pricing is fixed or determinable and collection is reasonably assured.

Vehicle rental and rental-related revenue is recognized over the period the vehicle is rented. Licensing revenue principally consists of royalties paid by the Company’s licensees and is recorded within other revenues as the licensees’ revenue is earned (over the rental period of a vehicle). The Company renews license agreements in the normal course of business and occasionally terminates, purchases or sells license agreements. In connection with ongoing fees that the Company receives from its licensees pursuant to license agreements, the Company is required to provide certain services, such as training, marketing and the operation of reservation systems. Revenue and expenses associated with gasoline, vehicle licensing and airport concessions are recorded on a gross basis within revenue and operating expenses. Membership fees related to the Company’s car sharing business are generally nonrefundable, are deferred and recognized ratably over the period of membership and are included in accounts payable and other current liabilities in the Consolidated Balance Sheets.

Currency Translation

Assets and liabilities of foreign operations are translated at the rate of exchange in effect on the balance sheet date; income and expenses are translated at the prevailing monthly average rate of exchange. The related translation adjustments are reflected in accumulated other comprehensive income (loss) in the stockholders’ equity section of the Consolidated Balance Sheets and in the Consolidated Statements of Comprehensive Income. The accumulated currency translation adjustment as of December 31, 2017 and 2016 was $71 million and $(39) million, respectively. The Company has designated its euro-denominated Notes as a hedge of its investment in euro-denominated foreign operations and, accordingly, records the effective portion of gains or losses on this net investment hedge in accumulated other comprehensive income (loss) as part of currency translation adjustments.

Cash and Cash Equivalents

The Company considers highly liquid investments purchased with an original maturity of three months or less to be cash equivalents.

Property and Equipment

Property and equipment (including leasehold improvements) are stated at cost, net of accumulated depreciation and amortization. Depreciation (non-vehicle related) is computed utilizing the straight-line method over the estimated useful lives of the related assets. Amortization of leasehold improvements is computed utilizing the straight-line method over the estimated benefit period of the related assets, which may not exceed 20 years, or the lease term, if shorter. Useful lives are as follows:



Buildings	30 years
Furniture, fixtures & equipment	3 to 10 years
Capitalized software	3 to 7 years
Buses and support vehicles	4 to 15 years

The Company capitalizes the costs of software developed for internal use when the preliminary project stage is completed and management (i) commits to funding the project and (ii) believes it is probable that the project will be completed and the software will be used to perform the function intended. The software developed or obtained for internal use is amortized on a straight-line basis commencing when such software is ready for its intended use. The net carrying value of software developed or obtained for internal use was $196 million and $184 million as of December 31, 2017 and 2016, respectively.

Goodwill and Other Intangible Assets

Goodwill represents the excess, if any, of the fair value of the consideration transferred by the acquirer and the fair value of any non-controlling interest remaining in the acquiree, if any, over the fair values of the identifiable net assets acquired. The Company does not amortize goodwill, but assesses it for impairment at least annually and whenever events or changes in circumstances indicate that the carrying amounts of their respective reporting units exceed their fair values. The Company performs its annual impairment assessment in the fourth quarter of each year at the reporting unit level. The Company assesses goodwill for such impairment by comparing the carrying value of each reporting unit to its fair value using the present value of expected future cash flows. When appropriate, comparative market multiples and other factors are used to corroborate the discounted cash flow results.

Other intangible assets, primarily trademarks, with indefinite lives are not amortized but are evaluated annually for impairment and whenever events or changes in circumstances indicate that the carrying amount of this asset may exceed its fair value. If the carrying value of an other intangible asset exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. Other intangible assets with finite lives are amortized over their estimated useful lives and are evaluated each reporting period to determine if circumstances warrant a revision to these lives.

Impairment of Long-Lived Assets

The Company is required to assess long-lived assets for impairment whenever circumstances indicate impairment may have occurred. This analysis is performed by comparing the respective carrying values of the assets to the undiscounted expected future cash flows to be generated from such assets. Property and equipment is evaluated separately at the lowest level of identifiable cash flows. If such analysis indicates that the carrying value of these assets is not recoverable, the carrying value of such assets is reduced to fair value.

Program Cash

Program cash primarily represents amounts specifically designated to purchase assets under vehicle programs and/or to repay the related debt.

Vehicles

Vehicles are stated at cost, net of accumulated depreciation. The initial cost of the vehicles is recorded net of incentives and allowances from manufacturers. The Company acquires a portion of its rental vehicles pursuant to repurchase and guaranteed depreciation programs established by automobile manufacturers. Under these programs, the manufacturers agree to repurchase vehicles at a specified price and date, or guarantee the depreciation rate for a specified period of time, subject to certain eligibility criteria (such as car condition and mileage requirements). The Company depreciates vehicles such that the net book value on the date of return to the manufacturers is intended to equal the contractual guaranteed residual values, thereby minimizing any gain or loss.

Rental vehicles acquired outside of manufacturer repurchase and guaranteed depreciation programs are depreciated based upon their estimated residual values at their expected dates of disposition, after giving effect to anticipated conditions in the used car market. Any adjustments to depreciation are made prospectively.

The estimation of residual values requires the Company to make assumptions regarding the age and mileage of the car at the time of disposal, as well as expected used vehicle auction market conditions. The Company periodically evaluates estimated residual values and adjusts depreciation rates as appropriate. Differences between actual residual values and those estimated result in a gain or loss on disposal and are recorded as part of vehicle depreciation at the time of sale. Vehicle-related interest expense amounts are net of vehicle-related interest income of $8 million, $18 million and $13 million for 2017, 2016 and 2015, respectively.

Advertising Expenses

Advertising costs are generally expensed in the period incurred. Advertising expenses, recorded within selling, general and administrative expense on our Consolidated Statements of Operations, include television, print advertising, travel partner rewards programs, Internet and email advertising, social media, wireless mobile device applications and other advertising and promotions and were approximately $111 million, $127 million and $123 million in 2017, 2016 and 2015, respectively.

Taxes

The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. In the fourth quarter of 2017, the U.S. enacted Public Law 115-97, commonly referred to as the U.S. Tax Reform Act (the “Tax Act”), which included a change in the U.S. federal corporate income tax rate. For more information regarding the accounting for the effects of the Tax Act, see Note 8-Income Taxes.

The Company records net deferred tax assets to the extent it believes that it is more likely than not that these assets will be realized. In making such determination, the Company considers all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies and recent results of operations. In the event the Company were to determine that it would be able to realize the deferred income tax assets in the future in excess of their net recorded amount, the Company would adjust the valuation allowance, which would reduce the provision for income taxes.

The Company reports revenues net of any tax assessed by a governmental authority that is both imposed on and concurrent with a specific revenue-producing transaction between a seller and a customer.

Fair Value Measurements

The Company measures fair value of assets and liabilities and discloses the source for such fair value measurements. Financial assets and liabilities are classified as follows: Level 1, which refers to assets and liabilities valued using quoted prices from active markets for identical assets or liabilities; Level 2, which refers to assets and liabilities for which significant other observable market inputs are readily available; and Level 3, which are valued based on significant unobservable inputs.

The fair value of the Company’s financial instruments is generally determined by reference to market values resulting from trading on a national securities exchange or in an over-the-counter market (Level 1 inputs). In some cases where quoted market prices are not available, prices are derived by considering the yield of the benchmark security that was issued to initially price the instruments and adjusting this rate by the credit spread that market participants would demand for the instruments as of the measurement date (Level 2 inputs). In situations where long-term borrowings are part of a conduit facility backed by short-term floating rate debt, the Company has determined that its carrying value approximates the fair value of this debt (Level 2 inputs). The carrying amounts of cash and cash equivalents, available-for-sale securities, accounts receivable, program cash and accounts payable and accrued liabilities approximate fair value due to the short-term maturities of these assets and liabilities.

The Company’s derivative assets and liabilities consist principally of currency exchange contracts, interest rate swaps, interest rate caps and commodity contracts, and are carried at fair value based on significant observable inputs (Level 2 inputs). Derivatives entered into by the Company are typically executed over-the-counter and are valued using internal valuation techniques, as no quoted market prices exist for such instruments. The valuation technique and inputs depend on the type of derivative and the nature of the underlying exposure. The Company principally uses discounted cash flows to value these instruments. These models take into account a variety of factors including, where applicable, maturity, currency exchange rates, interest rate yield curves of the Company and counterparties, credit curves, counterparty creditworthiness and commodity prices. These factors are applied on a consistent basis and are based upon observable inputs where available.

Derivative Instruments

Derivative instruments are used as part of the Company’s overall strategy to manage exposure to market risks associated with fluctuations in currency exchange rates, interest rates and gasoline costs. As a matter of policy, derivatives are not used for trading or speculative purposes.

All derivatives are recorded at fair value either as assets or liabilities. Changes in fair value of derivatives not designated as hedging instruments are recognized currently in earnings within the same line item as the hedged item. The effective portion of changes in fair value of a derivative that is designated as either a cash flow or net investment hedge is recorded as a component of accumulated other comprehensive income (loss). The ineffective portion is recognized in earnings within the same line item as the hedged item, including vehicle interest, net or interest related to corporate debt, net. Amounts included in accumulated other comprehensive income (loss) are reclassified into earnings in the same period during which the hedged item affects earnings. Amounts related to our derivative instruments are recognized in the Consolidated Statements of Cash Flows consistent with the nature of the hedged item (principally operating activities).

Currency Transactions

Currency gains and losses resulting from foreign currency transactions are generally included in operating expenses within the Consolidated Statement of Operations; however, the net gain or loss of currency transactions on intercompany loans and the unrealized gain or loss on intercompany loan hedges are included within interest expense related to corporate debt, net. During December 31, 2017, the Company recorded a gain of $3 million and during the years ended December 31, 2016 and 2015, the Company recorded losses of $6 million and $11 million, respectively, on such items.

Self-Insurance Reserves

The Consolidated Balance Sheets include $422 million and $437 million of liabilities associated with retained risks of liability to third parties as of December 31, 2017 and 2016, respectively. Such liabilities relate primarily to public liability and third-party property damage claims, as well as claims arising from the sale of ancillary insurance products including but not limited to supplemental liability, personal effects protection and personal accident insurance. These obligations represent an estimate for both reported claims not yet paid and claims incurred but not yet reported. The estimated reserve requirements for such claims are recorded on an undiscounted basis utilizing actuarial methodologies and various assumptions which include, but are not limited to, the Company’s historical loss experience and projected loss development factors. The required liability is also subject to adjustment in the future based upon changes in claims experience, including changes in the number of incidents for which the Company is ultimately liable and changes in the cost per incident. These amounts are included within accounts payable and other current liabilities and other non-current liabilities.

The Consolidated Balance Sheets also include liabilities of approximately $66 million and $71 million as of December 31, 2017 and 2016, respectively, related to workers’ compensation, health and welfare and other employee benefit programs. The liabilities represent an estimate for both reported claims not yet paid and claims incurred but not yet reported, utilizing actuarial methodologies similar to those described above. These amounts are included within accounts payable and other current liabilities and other non-current liabilities.

Stock-Based Compensation

Stock-based compensation cost is measured at the grant date, based on the fair value of the award, and is recognized as expense on a straight-line basis over the vesting period. The Company’s policy is to record compensation expense for stock options, and restricted stock units that are time- and performance-based, for the portion of the award that is expected to vest. Compensation expense related to market-based restricted stock units is recognized provided that the requisite service is rendered, regardless of when, if ever, the market condition is satisfied. We estimate the fair value of restricted stock units using the market price of the Company’s common stock on the date of grant. We estimate the fair value of stock-based and cash unit awards containing a market condition using a Monte Carlo simulation model. Key inputs and assumptions used in the Monte Carlo simulation model include the stock price of the award on the grant date, the expected term, the risk-free interest rate over the expected term, the expected annual dividend yield and the expected stock price volatility. The expected volatility is based on a combination of the historical and implied volatility of the Company’s publicly traded, near-the-money stock options, and the valuation period is based on the vesting period of the awards. The risk-free interest rate is derived from the U.S. Treasury yield curve in effect at the time of grant and, since the Company does not currently pay or plan to pay a dividend on its common stock, the expected dividend yield was zero.

Business Combinations

The Company uses the acquisition method of accounting for business combinations, which requires that the assets acquired and liabilities assumed be recorded at their respective fair values at the date of acquisition. Assets acquired and liabilities assumed in a business combination that arise from contingencies are recognized if fair value can be reasonably estimated at the acquisition date. The excess, if any, of (i) the fair value of the consideration transferred by the acquirer and the fair value of any non-controlling interest remaining in the acquiree, over (ii) the fair values of the identifiable net assets acquired is recorded as goodwill. Gains and losses on the re-acquisition of license agreements are recorded in the Consolidated Statements of Operations within transaction-related costs, net, upon completion of the respective acquisition. Costs incurred to effect a business combination are expensed as incurred, except for the cost to issue debt related to the acquisition.

The Company records contingent consideration resulting from a business combination at its fair value on the acquisition date. The fair value of the contingent consideration is generally estimated by utilizing a Monte Carlo simulation technique, based on a range of possible future results (Level 3). Any changes in contingent consideration are recorded in transaction-related costs, net. During 2015, the Company paid $18 million of contingent consideration associated with the acquisition of Apex, which consisted of $9 million related to the liability recognized at fair value as of the acquisition date and $13 million related to fair value adjustments previously recognized in earnings, partially offset by $4 million of favorable currency exchange rate movements.

Transaction-related Costs, net

Transaction-related costs, net are classified separately in the Consolidated Statements of Operations. These costs are comprised of expenses related to acquisition-related activities such as due-diligence and other advisory costs, expenses related to the integration of the acquiree’s operations with those of the Company, including the implementation of best practices and process improvements, non-cash gains and losses related to re-acquired rights, expenses related to pre-acquisition contingencies and contingent consideration related to acquisitions.

Investments

Joint venture investments are typically accounted for under the equity method of accounting. Under this method, the Company records its proportional share of the joint venture’s net income or loss within operating expenses in the Consolidated Statements of Operations. The Company assesses equity method investments for impairment whenever events or changes in circumstances indicate that the carrying amounts of such investments may not be recoverable. Any difference between the carrying value of the equity method investment and its estimated fair value is recognized as an impairment charge if the loss in value is deemed other than temporary. As of December 31, 2017 and 2016, the Company had investments in several joint ventures with a carrying value of $32 million and $36 million, respectively, recorded within other non-current assets on the Consolidated Balance Sheets.

Aggregate realized gains and losses on equity investments and dividend income are recorded within operating expenses on the Consolidated Statements of Operations. During 2017, 2016 and 2015, the amounts realized from the sale of equity investments and dividend income were not material.

Adoption of New Accounting Pronouncements

Scope of Modification Accounting for Share-Based Payment Awards

In May 2017, the Financial Accounting Standards Board (“FASB”) issued ASU 2017-09, “Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting,” which provides guidance on the types of changes to the terms or conditions of a share-based payment award to which an entity would be required to apply modification accounting. ASU 2017-09 becomes effective for the Company on January 1, 2018; however, as of December 31, 2017 the Company has elected to adopt the provisions of ASU 2017-09 early on a prospective basis. Accordingly, the adoption of this accounting pronouncement did not have an impact on the Company’s Consolidated Financial Statements.

Accounting for Goodwill Impairment

In January 2017, the FASB issued ASU 2017-04, “Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment,” which requires an entity to perform its goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and to recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. ASU 2017-04 becomes effective for the Company on January 1, 2020; however, as of October 1, 2017 the Company has elected to adopt the provisions of ASU 2017-04 early on a prospective basis. Accordingly, the adoption of this accounting pronouncement did not have an impact on the Company’s Consolidated Financial Statements.

Clarifying the Definition of a Business

In January 2017, the FASB issued ASU 2017-01, “Business Combinations (Topic 805): Clarifying the Definition of a Business,” which assists entities in evaluating whether transactions should be accounted for as acquisitions of assets or businesses. ASU 2017-01 becomes effective for the Company on January 1, 2018; however, as of December 31, 2017 the Company has elected to adopt the provisions of ASU 2017-01 early on a prospective basis. Accordingly, the adoption of this accounting pronouncement did not have an impact on the Company’s Consolidated Financial Statements.

Restricted Cash

In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash,” which clarifies guidance on the classification and presentation of restricted cash in the statement of cash flows. ASU 2016-18 becomes effective for the Company on January 1, 2018; however, as of December 31, 2017, the Company has elected to adopt the provisions of ASU 2016-18 early on a retrospective basis.

The following tables provide the impact of adoption on the Company’s Consolidated Statements of Cash Flows for the years ended December 31, 2016 and 2015.



	Year Ended December 31, 2016
	As Previously Reported			Effect of Change			As Adjusted
Decrease in program cash	$	31		$	(31	)	$	—
Other, net	3			(2		)	1
Net cash used in investing activities	(2,149		)	(33		)	(2,182		)

Effect of changes in exchange rates on cash and cash equivalents, program and restricted cash	(4		)	(2		)	(6		)

Net increase in cash and cash equivalents, program and restricted cash	38			(35		)	3
Cash and cash equivalents, program and restricted cash, beginning of period	452			265			717
Cash and cash equivalents, program and restricted cash, end of period	$	490		$	230		$	720

	Year Ended December 31, 2015
	As Previously Reported			Effect of Change			As Adjusted
Increase in program cash	$	(148	)	$	148		$	—
Other, net	6			(3		)	3
Net cash used in investing activities	(2,830		)	145			(2,685		)

Effect of changes in exchange rates on cash and cash equivalents, program and restricted cash	(41		)	(9		)	(50		)

Net decrease in cash and cash equivalents, program and restricted cash	(172		)	136			(36		)
Cash and cash equivalents, program and restricted cash, beginning of period	624			129			753
Cash and cash equivalents, program and restricted cash, end of period	$	452		$	265		$	717

Program cash primarily represents amounts specifically designated to purchase assets under vehicle programs and/or to repay the related debt, as such the Company considers it a restricted cash equivalent under this standard.

The following table provides a reconciliation of cash and cash equivalents, program and restricted cash reported within the Consolidated Balance Sheets to the amounts shown in the Consolidated Statements of Cash Flows:



	As of December 31,
	2017		2016
Cash and cash equivalents	$	611	$	490
Program cash	283		225
Restricted cash ^(a)	7		5
Total cash and cash equivalents, program and restricted cash	$	901	$	720

_________


^(a)	Included within other current assets.

Classification of Certain Cash Receipts and Cash Payments

In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments,” which clarifies guidance on the classification of certain cash receipts and cash payments in the statement of cash flows. These items include, debt prepayment or debt extinguishment costs, settlement of zero-coupon debt instruments, contingent consideration payments made after a business combination, proceeds from the settlement of life insurance claims, proceeds from the settlement of corporate-owned life insurance policies, and distributions received from equity method investees. ASU 2016-15 becomes effective for the Company on January 1, 2018; however, as of December 31, 2017 the Company has elected to adopt the provisions of ASU 2016-15 early on a retrospective basis. The Company elected to account for distributions received from equity method investees using the nature of the distribution approach. The adoption of this accounting pronouncement did not have an impact on the Company’s Consolidated Financial Statements.

Improvements to Employee Share-Based Payment Accounting

On January 1, 2017, as a result of a new accounting pronouncement, the Company adopted Accounting Standards Update (”ASU”) 2016-09, “Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting,” which simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, minimum statutory withholding requirements and classification in the statement of cash flows. Accordingly, in the Company’s Consolidated Balance Sheet at January 1, 2017, deferred income tax assets, net of the valuation allowance were increased by $56 million related to previously unrecognized excess tax benefits associated with equity awards, with a corresponding decrease to accumulated deficit, using the modified retrospective method. In 2017, as a result of the adoption of ASU 2016-09, share-based compensation excess tax benefits or deductions are included in the Consolidated Statement of Operations as a component of provision for (benefit from) income taxes, previously these amounts were recognized in equity. In addition, in the Company’s Consolidated Statement of Cash Flows for the years ended December 31, 2016 and 2015, cash taxes paid related to shares directly withheld from employees for tax purposes of $11 million and $43 million, respectively, were reclassified from accounts payable and other current liabilities within net cash provided by operating activities to repurchases of common stock within net cash used in financing activities exclusive of vehicle programs. The Company elected to account for forfeitures on an actual basis, which did not have a material impact on its Consolidated Financial Statements.

Recently Issued Accounting Pronouncements

Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost

On January 1, 2018, as a result of a new accounting pronouncement, the Company adopted ASU 2017-07, “Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Costs and Net Periodic Postretirement Benefit Cost,” which requires an entity to disaggregate the components of net benefit cost recognized in the consolidated statements of operations. The adoption of this accounting pronouncement did not have an impact on the Company’s Consolidated Financial Statements.

Recognition and Measurement of Financial Assets and Financial Liabilities

On January 1, 2018, as a result of a new accounting pronouncement, the Company adopted ASU 2016-01, “Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities,” which makes limited amendments to the classification and measurement of financial instruments. The new standard amends certain disclosure requirements associated with the fair value of financial instruments. The adoption of this accounting pronouncement did not have a material impact on the Company’s Consolidated Financial Statements.

Intra-Entity Transfers of Assets Other Than Inventory

On January 1, 2018, as a result of a new accounting pronouncement, the Company adopted ASU 2016-16, “Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory,” which removes the prohibition in Topic 740 against the immediate recognition of the current and deferred income tax effects of intra-entity transfers of assets other than inventory. The adoption of this accounting pronouncement did not have an impact on the Company’s Consolidated Financial Statements.

Revenue from Contracts with Customers

On January 1, 2018, as a result of a new accounting pronouncement, the Company adopted ASU 2014-09, “Revenue from Contracts with Customers (Topic 606),” which outlines a single model for entities to use in accounting for revenue arising from contracts with customers and supersedes current revenue recognition guidance. The new guidance applies to all contracts with customers except for leases, insurance contracts, financial instruments, certain nonmonetary exchanges and certain guarantees. Also, additional disclosures are required about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments. The Company has adopted the requirements of the new standard on a modified retrospective basis applied to all contracts. Prior periods will not be retrospectively adjusted. As discussed in Leases below, the Company’s vehicle rental revenues will be accounted for under Topic 606 until the adoption of ASU 2016-02, “Leases (Topic 842) on January 1, 2019. Upon adoption of Topic 606, each transaction that generates customer loyalty points results in the deferral of revenue equivalent to the retail value of the redemption of the loyalty points. The associated revenue will be recognized at the time the customer redeems the loyalty points. Previously, the Company did not defer revenue and recorded an expense associated with the incremental cost of providing the future rental at the time when the loyalty points were earned. Accordingly, in the Company’s Consolidated Balance Sheet at January 1, 2018, customer loyalty program liability increased approximately $50 million related to the retail value of customer loyalty points earned, with a corresponding increase to accumulated deficit (approximately $40 million, net of tax) due to the cumulative impact of adopting Topic 606. Certain customers may receive cash-based rebates, which are accounted for as variable consideration under Topic 606. The Company currently estimates these rebates based on the expected amount to be provided to customers and reduces revenue recognized. There will not be significant changes to these rebate estimates under Topic 606.

Accounting for Hedging Activities

In August 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities,” which amends the existing guidance to allow companies to more accurately present the economic results of an entity’s risk management activities in the financial statements. ASU 2017-12 becomes effective for the Company on January 1, 2019. Early adoption is permitted. The Company is currently evaluating the effect of this accounting pronouncement on its Consolidated Financial Statements.

Measurement of Credit Losses on Financial Instruments

In June 2016, the FASB issued ASU 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which sets forth a current expected credit loss impairment model for financial assets that replaces the current incurred loss model. This model requires a financial asset (or group of financial assets), including trade receivables, measured at amortized cost to be presented at the net amount expected to be collected with an allowance for credit losses deducted from the amortized cost basis. The allowance for credit losses should reflect management’s current estimate of credit losses that are expected to occur over the remaining life of a financial asset. ASU 2016-13 becomes effective for the Company on January 1, 2020. Early adoption is permitted as of January 1, 2019. The adoption of this accounting pronouncement is not expected to have a material impact on the Company's Financial Statements.

Leases

In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842),” which requires a lessee to recognize all long-term leases on its balance sheet as a liability for its lease obligation, measured at the present value of lease payments not yet paid, and a corresponding asset representing its right to use the underlying asset over the lease term and expands disclosure of key information about leasing arrangements. The ASU does not significantly change a lessee’s recognition, measurement and presentation of expenses and cash flows. Additionally, ASU 2016-02 aligns key aspects of lessor accounting with the new revenue recognition guidance in ASU 2014-09 (see above). ASU 2016-02 becomes effective for the Company on January 1, 2019. Early adoption is permitted. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach which includes a number of optional practical expedients that entities may elect to apply. The Company is currently evaluating and planning for the implementation of this ASU, including assessing its overall impact, and expects most of its operating lease commitments will be subject to the new standard and recognized as operating lease liabilities and right-of-use assets upon adoption, which will materially increase total assets and total liabilities relative to such amounts prior to adoption. The Company has determined portions of its vehicle rental contracts that convey the right to control the use of identified assets are within the scope of the accounting guidance contained in ASU 2016-02. As discussed in Revenue from Contracts with Customers above, the Company’s vehicle rental revenues will be accounted for under the revenue accounting standard Topic 606 effective January 1, 2018, until the adoption of this accounting pronouncement on January 1, 2019.

Income Taxes

In January 2018, the FASB issued FASB Staff Question and Answer Topic 740, No. 5: Accounting for Global Intangible Low-Taxed Income (“GILTI”), which provides guidance on accounting for the GILTI provisions of the Tax Act. The GILTI provisions impose a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations. The guidance allows accounting for tax on GILTI to be treated as a deferred tax item or as a component of current period income tax expense in the year incurred, subject to an accounting policy election. The Company has not completed its analysis of the GILTI provisions of the Tax Act and therefore has not made an accounting policy election related to such provision. The Company will complete its analysis in a subsequent period not to exceed one year from the date of the enactment of the Tax Act and will elect an accounting policy at such time.

Restructuring

12 Months Ended

Dec. 31, 2017

Restructuring and Related Activities [Abstract]

Restructuring


4.	Restructuring and Other Related Charges

Restructuring

During fourth quarter 2017, the Company initiated a strategic restructuring initiative to better position its truck rental operations in the U.S., in which it closed certain rental locations and reduced the size of the older rental fleet, with the intent to increase fleet utilization and reduce vehicle and overhead costs (“Truck initiative”). During the year ended December 31, 2017, as part of this initiative, the Company formally communicated the termination of employment to approximately 25 employees, and as of December 31, 2017, the Company had terminated the employment of approximately 20 of these employees. The Company expects further restructuring expense of approximately $3 million related to this initiative to be incurred in 2018.

During first quarter 2017, the Company initiated a strategic restructuring initiative to drive operational efficiency throughout the organization by reducing headcount, improving processes and consolidating functions, closing certain rental locations and decreasing the size of its fleet (“T17”). During the year ended December 31, 2017, as part of this initiative, the Company formally communicated the termination of employment to approximately 680 employees, and as of December 31, 2017, the Company had terminated the employment of approximately 665 of these employees. The costs associated with this initiative primarily represent severance, outplacement services and other costs associated with employee terminations, the majority of which have been or are expected to be settled in cash. This initiative is substantially complete.

In 2014, the Company committed to various strategic initiatives to identify best practices and drive efficiency throughout its organization, by reducing headcount, improving processes and consolidating functions (“T15”). In first quarter 2016, the Company expanded the T15 restructuring to take advantage of additional efficiency opportunities. The expanded T15 restructuring fits within the initiative’s focus areas to identify best practices and drive efficiency throughout the organization, including the consolidation of rental locations. During the years ended December 31, 2016 and 2015, as part of this process, the Company formally communicated the termination of employment to approximately 615 and 325 employees, respectively. At December 31 2017, the Company had terminated approximately 990 employees as part of this initiative. The costs associated with this initiative primarily represent severance, outplacement services and other costs associated with employee terminations, the majority of which have been or are expected to be settled in cash. This initiative is complete.

In conjunction with previous acquisitions, the Company identified opportunities to integrate and streamline its operations, primarily in Europe (“Acquisition integration”). During the years ended December 31, 2016 and 2015, as part of this process, the Company formally communicated the termination of employment to approximately 115 and 180 employees, respectively. At December 31, 2017, the Company had terminated approximately 260 of these employees. This initiative is complete.

In 2011, subsequent to the acquisition of Avis Europe plc, the Company initiated restructuring initiatives, identifying synergies across the Company, enhancing organizational efficiencies and consolidating and rationalizing processes (“Avis Europe”). During the year ended December 31, 2014, as part of this process, the Company formally communicated the termination of employment to approximately 230 employees. The costs associated with severance, outplacement services and other costs associated with employee terminations were settled in cash. This initiative is complete.

The following tables summarize the change to our restructuring-related liabilities and identify the amounts recorded within the Company’s reporting segments for restructuring charges and corresponding payments and utilizations:



	Personnel Related			Facility Related			Other ^(a)			Total
Balance as of January 1, 2015	$	14		$	3		$	—		$	17
Restructuring expense:
T15	9			—			—			9
Acquisition integration	9			—			—			9
Restructuring payment:
T15	(12		)	—			—			(12		)
Acquisition integration	(3		)	—			—			(3		)
Avis Europe	(7		)	(2		)	—			(9		)
Balance as of December 31, 2015	10			1			—			11
Restructuring expense:
T15	15			1			5			21
Acquisition integration	9			—			—			9
Avis Europe	(1		)	—			—			(1		)
Restructuring payment/utilization:
T15	(12		)	(1		)	(5		)	(18		)
Acquisition integration	(15		)	—			—			(15		)
Avis Europe	(1		)	—			—			(1		)
Balance as of December 31, 2016	5			1			—			6
Restructuring expense:
Truck initiative	1			—			4			5
T17	20			—			15			35
Restructuring payment/utilization:
Truck initiative	(1		)	—			(4		)	(5		)
T17	(17		)	(1		)	(15		)	(33		)
T15	(3		)	—			—			(3		)
Acquisition integration	(1		)	—			—			(1		)
Balance as of December 31, 2017	$	4		$	—		$	—		$	4

__________


^(a)	Includes expenses primarily related to the disposition of vehicles.



	Americas			International			Total
Balance as of January 1, 2015	$	4		$	13		$	17
Restructuring expense:
T15	6			3			9
Acquisition integration	1			8			9
Restructuring payment:
T15	(8		)	(4		)	(12		)
Acquisition integration	(1		)	(2		)	(3		)
Avis Europe	(1		)	(8		)	(9		)
Balance as of December 31, 2015	1			10			11
Restructuring expense:
T15	11			10			21
Acquisition integration	—			9			9
Avis Europe	—			(1		)	(1		)
Restructuring payment/utilization:
T15	(11		)	(7		)	(18		)
Acquisition integration	—			(15		)	(15		)
Avis Europe	—			(1		)	(1		)
Balance as of December 31, 2016	1			5			6
Restructuring expense:
Truck initiative	5			—			5
T17	25			10			35
Restructuring payment/utilization:
Truck initiative	(5		)	—			(5		)
T17	(24		)	(9		)	(33		)
T15	(1		)	(2		)	(3		)
Acquisition integration	—			(1		)	(1		)
Balance as of December 31, 2017	$	1		$	3		$	4

Other Related Charges

Officer Separation Costs

On May 12, 2017, the Company announced the resignation of David B. Wyshner as the Company’s President and Chief Financial Officer. In connection with Mr. Wyshner’s departure, the Company recorded other related charges of $7 million during the year ended December 31, 2017, inclusive of accelerated stock-based compensation expense of $2 million.

Limited Voluntary Opportunity Plans (“LVOP”)

During 2017, the Company offered voluntary termination programs to certain employees in the Americas’ field operations, shared services, and general and administrative functions for a limited time. These employees, if qualified, elected resignation from employment in return for enhanced severance benefits to be settled in cash. During the year ended December 31, 2017, the Company recorded other related charges of $16 million in connection with LVOP. Approximately 355 qualified employees elected to participate in the plans, and as of December 31, 2017, the Company had terminated the employment of approximately 340 of these participants.

Acquisitions

12 Months Ended

Dec. 31, 2017

Business Combinations [Abstract]

Acquisitions


5.	Acquisitions

2017

Avis and Budget Licensees

During 2017, the Company completed the acquisitions of various licensees in Europe and North America, for approximately $9 million, plus $4 million for acquired fleet. These investments were in line with the Company’s strategy to re-acquire licensees when advantageous to expand our footprint of Company-operated locations. The acquired fleet was financed under the Company’s existing financing arrangements. In connection with these acquisitions, approximately $12 million was recorded in license agreements. The license agreements will be amortized over a weighted average useful life of approximately three years. In addition, at the time of the acquisitions, the Company recorded $2 million in non-cash charges within transaction-related costs, net in connection with the license rights reacquired by the Company. The fair value of the assets acquired and liabilities assumed has not yet been finalized and is therefore subject to change.

ACL Hire Limited

In November 2017, the Company completed the acquisition of ACL Hire Limited, a vehicle rental company in Scotland and the UK specializing in commercial and mid-size transit vans, for approximately $5 million, net of acquired cash, and agreed to an additional $2 million of contingent consideration which is contingent on ACL Hire Limited’s future financial performance. The excess of the purchase price over preliminary fair value of net assets acquired was allocated to goodwill, which was assigned to the Company’s International reportable segment. In connection with this acquisition, approximately $5 million was recorded in goodwill. The goodwill is not deductible for tax purposes. The fair value of the assets acquired and liabilities assumed has not yet been finalized and is therefore subject to change.

2016

FranceCars

In December 2016, the Company completed the acquisition of FranceCars for approximately $45 million, net of acquired cash. The investment enabled the Company to expand its footprint with a leading provider of vehicle rental services in France. The excess of the purchase price over preliminary fair value of net assets acquired was allocated to goodwill, which was assigned to the Company’s International reportable segment. In connection with this acquisition, approximately $22 million was recorded in goodwill, $6 million was recorded in customer relationships, and $9 million related to trademarks was recorded in other intangibles. The customer relationships and trademarks are being amortized over a weighted average useful life of approximately eight years. The goodwill is not deductible for tax purposes. Differences between the preliminary allocation of purchase price and the final allocation were not material for FranceCars.

2015

Maggiore Group

In April 2015, the Company completed the acquisition of Maggiore Group (“Maggiore”) for approximately $160 million, net of acquired cash and short-term investments. The investment enabled the Company to expand its footprint with a leading provider of vehicle rental services in Italy. The excess of the purchase price over preliminary fair value of net assets acquired was allocated to goodwill, which was assigned to the Company’s International reportable segment. In connection with this acquisition, approximately $82 million was recorded in goodwill, $50 million was recorded in customer relationships, $34 million related to trademarks were recorded in other intangibles and $11 million was recorded in license agreements. The customer relationships, trademarks and license agreements are being amortized over a weighted average useful life of approximately ten years. The goodwill is not deductible for tax purposes. Differences between the preliminary allocation of purchase price and the final allocation were not material for Maggiore.

Brazil

In August 2013, the Company made an initial equity investment in its Brazilian licensee (“Brazil”) for a 50% ownership stake. In April 2015, the Company acquired the remaining 50% equity interest in Brazil, which is now a wholly-owned subsidiary, for cash consideration of $8 million plus $46 million principally to acquire debt interests and settle certain debt and accrued interest obligations. Since the Company previously accounted for its 50% interest in Brazil as an equity-method investment, in order to recognize Brazil as a wholly-owned subsidiary in April 2015, the Company remeasured its previously held equity method investment to fair value using the Income approach-discounted cash flow method (Level 3), resulting in a loss of $8 million during 2015 as part of transaction-related costs. $77 million was allocated to goodwill for the excess of the purchase price over preliminary fair value of net assets acquired, which was assigned to the Company’s Americas reportable segment and is not deductible for tax purposes. Differences between the preliminary allocation of purchase price and the final allocation were not material for Brazil.

Avis and Budget Licensees

In November and January 2015, the Company completed the acquisitions of its Avis licensee in Poland and its Avis and Budget licensees in Norway, Sweden and Denmark, respectively, for approximately $62 million, net of acquired cash. Additionally, the Company settled debt obligations of approximately $23 million in Poland. These investments enabled the Company to expand its footprint of Company-operated locations in Europe. The excess of the purchase price over preliminary fair value of net assets acquired was allocated to goodwill, which was assigned to the Company’s International reportable segment. In connection with these acquisitions, approximately $36 million was recorded in license agreements, $29 million was recorded in goodwill and $12 million was recorded in customer relationships. The license agreements and customer relationships will be amortized over a weighted average useful life of approximately eight years. In addition, at the time of acquisition, the Company recorded a $25 million non-cash charge within transaction-related costs, net in connection with license rights reacquired by the Company. The goodwill is not deductible for tax purposes. Differences between the preliminary allocation of purchase price and the final allocation were not material for Avis and Budget Licensees.

Intangible Assets

12 Months Ended

Dec. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets


6.	Intangible Assets

Intangible assets consisted of:



	As of December 31, 2017						As of December 31, 2016
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Amortized Intangible Assets
License agreements ^(a)	$	281	$	140	$	141	$	261	$	109	$	152
Customer relationships ^(b)	242		119		123		224		90		134
Other ^(c)	51		18		33		46		12		34
	$	574	$	277	$	297	$	531	$	211	$	320

Unamortized Intangible Assets
Goodwill	$	1,073					$	1,007
Trademarks	$	553					$	550

_________


^(a)	Primarily amortized over a period ranging from 0 to 40 years with a weighted average life of 18 years.


^(b)	Primarily amortized over a period ranging from 3 to 20 years with a weighted average life of 12 years.


^(c)	Primarily amortized over a period ranging from 4 to 10 years with a weighted average life of 9 years.

During 2017, the Company recorded an impairment related to the unamortized Zipcar trademark of $2 million based on a combination of observable and unobservable fair value inputs (Level 3), specifically the Income approach-relief from royalty method, which considers market inputs.

Amortization expense relating to all intangible assets was as follows:



	Year Ended December 31,
	2017		2016		2015
License agreements	$	33	$	35	$	31
Customer relationships	24		23		21
Other	5		7		7
Total	$	62	$	65	$	59

Based on the Company’s amortizable intangible assets at December 31, 2017, the Company expects related amortization expense of approximately $47 million for 2018, $42 million for 2019, $40 million for 2020, $30 million for 2021 and $24 million for 2022, excluding effects of currency exchange rates.

The carrying amounts of goodwill and related changes are as follows:



		Americas			International			Total Company

Gross goodwill as of January 1, 2016		$	2,124		$	967		$	3,091
	Accumulated impairment losses as of January 1, 2016	(1,587		)	(531		)	(2,118		)
Goodwill as of January 1, 2016		537			436			973
	Acquisitions	2			23			25
	Currency translation adjustments and other	13			(4		)	9
Goodwill as of December 31, 2016		552			455			1,007
	Acquisitions	—			5			5
	Currency translation adjustments and other	—			61			61
Goodwill as of December 31, 2017		$	552		$	521		$	1,073

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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