What changed in this filing

/stocks — the workspaceLOADING

Item 9A. Controls and Procedures

2022-02-17 compared with 2021-02-17 · 573 added, 604 removed, 1252 unchanged (48% of the section changed)

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Based on this assessment, our management believes that, as of December 31, 2021, our internal control over financial reporting was effective.

The effectiveness of the Company’s internal control over financial reporting as of December 31, 2020 has been audited by Deloitte & Touche LLP, an independent registered public accounting firm.

The effectiveness of our internal control over financial reporting as of December 31, 2021 has been audited by Deloitte & Touche LLP, an independent registered public accounting firm.

Their attestation report is included below.

During the fiscal quarter to which this report relates, there has been no change in the Company’s internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

During the fiscal quarter to which this report relates, there has been no change in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

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In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2021, based on criteria established in Internal Control - Integrated Framework (2013) issued by COSO.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated financial statements and financial statement schedule as of and for the year ended December 31, 2020 of the Company and our report dated February 17, 2021 expressed an unqualified opinion on those consolidated financial statements and financial statement schedule.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated financial statements as of and for the year ended December 31, 2021 of the Company and our report dated February 17, 2022 expressed an unqualified opinion on those consolidated financial statements.

Basis for Opinion

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(Jagdeep Pahwa)

/s/ ANU HARIHARAN Director February 17, 2022

(Anu Hariharan)

/s/ LYNN KROMINGA Director February 17, 2022

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(Karthik Sarma)

/s/ CARL SPARKS Director February 17, 2021

(Carl Sparks)

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS

Report of Independent Registered Public Accounting Firm

Report of Independent Registered Public Accounting Firm (PCAOB ID No.

Consolidated Statements of Operations for the years ended December 31, 202 1 , 20 20 and 201 9

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We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2021, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 17, 2022, expressed an unqualified opinion on the Company's internal control over financial reporting.

Change in Accounting Principle

As discussed in Note 3 to the financial statements, effective January 1, 2019, the Company adopted FASB ASC Topic 842, Leases , using the transition method allowing entities to only apply the new lease standard in the year of adoption.

Basis for Opinion

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The Company’s evaluation of goodwill for impairment involves the comparison of 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.

When determining fair value, the Company utilizes various assumptions, including, but not limited to, management’s projections of future cash flows, which include forecasts of future revenue and adjusted earnings before interest, taxes, depreciation, and amortization (“Adjusted EBITDA”).

A change in these underlying assumptions will cause a

change in the results of the impairment test and, as such, could cause the fair value to be less than the respective carrying amount.

When determining fair value, the Company utilizes various assumptions, including, but not limited to, the discount rate and management’s projections of future cash flows, which include forecasts of future revenue and adjusted earnings before interest, taxes, depreciation, and amortization (“Adjusted EBITDA”).

A change in these underlying assumptions will cause a change in the results of the impairment test and, as such, could cause the fair value to be less than the respective carrying amount.

For the Company’s Europe, Middle East and Africa (“EMEA”) reporting unit, the percentage by which the estimated fair value exceeded the carrying value as of the annual impairment testing date was 10% and the amount of goodwill allocated to this reporting unit was $488 million.

Significant changes in events or conditions, including further impacts of the COVID-19 pandemic on the Company’s business and the travel industry, may impact the Company’s assumptions about future estimated cash flows, the discount rate and market multiples.

Given the significant judgments and assumptions made by management to estimate the fair value of the EMEA reporting unit combined with the estimation uncertainty related to the timing and magnitude of economic recovery, auditing the fair value of the EMEA reporting unit required extensive audit effort and judgment, including the need to involve our fair value specialists, when performing audit procedures to evaluate the reasonableness of management’s estimates and assumptions related to forecasts of future cash flows, specifically related to revenue and Adjusted EBITDA, and the selection of the discount rate.

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– Internal communications to management and the Board of Directors.

– Forecasted information included in Company press releases as well as in analyst and industry reports for the Company and certain of its peer companies.

– Forecasted information included in analyst and industry reports for the Company and certain of its peer companies.

• We evaluated the reasonableness of management’s assumptions related to the severity of business disruption associated with the COVID-19 pandemic on the EMEA reporting unit and timing of economic recovery by:

– Comparing management’s analysis of the expected business disruption from the COVID-19 pandemic on the EMEA reporting unit to the business impacts observed during 2020.

– Comparing management’s analysis of the expected business disruption from the COVID-19 pandemic on the EMEA reporting unit to the business impacts previously observed.

– Comparing management’s analysis of the timing of economic recovery to external economic recovery and industry forecasts to evaluate contradictory evidence related to management’s assumptions regarding the expected impact of the COVID-19 business disruption and timing of recovery.

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Net income (loss) 1,283 ( 684 ) 302

Earnings per share

net loss attributable to non-controlling interests ( 2 ) — —

Net income (loss) attributable to Avis Budget Group, Inc.

$ 1,285 $ ( 684 ) $ 302

Earnings (loss) per share

Basic $ 19.79 $ ( 9.71 ) $ 4.01

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Net income (loss) $ 1,283 $ ( 684 ) $ 302

net loss attributable to non-controlling interests ( 2 ) — —

Net income (loss) attributable to Avis Budget Group, Inc.

1,285 ( 684 ) 302

Other comprehensive income (loss), net of tax

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Currency translation adjustments, net of tax of $( 20 ), $ 23 and $( 6 ), respectively

( 35 ) $ 33 $ 12

Reclassification of currency translation adjustments to earnings 11 ( 2 ) —

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Net unrealized holding gains (losses), net of tax of $( 6 ), $ 14 , and $ 7 , respectively

18 ( 39 ) ( 20 )

Reclassification of cash flow hedges to earnings, net of tax of $( 5 ), $( 3 ), and $ 1 , respectively

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Pension and post-retirement benefits, net of tax of $( 13 ), $ 12 , and $ 6 , respectively

39 ( 36 ) ( 20 )

Reclassification of pension and post-retirement benefits to earnings, net of tax of $( 2 ), $( 3 ), and $( 2 ), respectively

54 ( 30 ) ( 25 )

Total comprehensive income (loss) $ ( 714 ) $ 277 $ 62

Total comprehensive income (loss) attributable to Avis Budget Group, Inc.

$ 1,339 $ ( 714 ) $ 277

See Notes to Consolidated Financial Statements.

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(In millions, except par value)

As of December 31,

Current assets:

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Preferred stock, $ .01 par value—authorized 10 shares;

none issued and outstanding — —

no ne issued and outstanding

Common stock, $ .01 par value—authorized 250 shares;

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Treasury stock, at cost 81 and 67 shares, respectively

( 6,579 ) ( 5,167 )

Stockholders’ equity attributable to Avis Budget Group, Inc.

( 220 ) ( 155 )

Non-controlling interests 11 —

Total stockholders’ equity ( 209 ) ( 155 )

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Repurchases of common stock ( 1,460 ) ( 119 ) ( 67 )

Other, net — — 3

Contributions from non-controlling interests 38 — —

Net cash provided by (used in) financing activities exclusive of vehicle programs ( 1,699 ) 553 ( 182 )

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4,386 ( 4,598 ) 500

Net cash (used in) provided by financing activities ( 4,045 ) 318 667

Net cash provided by (used in) financing activities 2,687 ( 4,045 ) 318

Effect of changes in exchange rates on cash and cash equivalents, program and restricted cash

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(In millions)

Common Stock Additional Paid-in Capital Accumulated Deficit Accumulated Other Comprehensive Income (Loss) Treasury Stock Total Stockholders’ Equity

Common Stock Additional Paid-in Capital Accumulated Deficit Accumulated Other Comprehensive Income (Loss) Treasury Stock Stockholders’ Equity Attributable to Avis Budget Group, Inc.

Non-controlling Interests Total Stockholders’ Equity

Shares Amount Shares Amount

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Cumulative effect of accounting change 4 1 5 5

— — — ( 34 ) ( 6 ) — — ( 40 )

Comprehensive income:

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Other comprehensive loss — — — — ( 25 ) — — ( 25 )

Total comprehensive income 62

Total comprehensive income (loss) 302 ( 25 ) 277 — 277

Net activity related to restricted stock units — — ( 24 ) — — 0.4 46 22 22

— — ( 31 ) — — 0.5 48 17

Exercise of stock options — — ( 5 ) — — 0.1 5 — —

Activity related to employee stock purchase plan — — ( 1 ) — — — 1 — —

— — ( 1 ) — — — 1 —

Repurchase of common stock — — — — — ( 2.2 ) ( 62 ) ( 62 ) ( 62 )

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Cumulative effect of accounting change — ( 1 ) — ( 1 ) ( 1 )

— — — 4 1 — — 5

Comprehensive income:

Net income — — — 302 — — —

Net loss — — — ( 684 ) — — — — ( 684 )

Other comprehensive loss — — — — ( 30 ) — — ( 30 )

Total comprehensive income 277

Total comprehensive loss ( 684 ) ( 30 ) ( 714 ) — ( 714 )

Non-controlling interests — — ( 2 ) — — — — ( 2 ) ( 2 )

Net activity related to restricted stock units — — ( 50 ) — — 0.5 54 4 4

— — ( 24 ) — — 0.4 46 22

Exercise of stock options — — ( 5 ) — — 0.1 5 —

Activity related to employee stock purchase plan — — ( 1 ) — — — 1 — —

— — ( 1 ) — — — 1 —

Issuance of common stock — — ( 20 ) — — 0.4 35 15 — 15

Repurchase of common stock — — — — — ( 5.0 ) ( 113 ) ( 113 ) ( 113 )

— — — — — ( 2.2 ) ( 62 ) ( 62 )

Balance at December 31, 2020 137.1 $ 1 $ 6,668 $ ( 1,470 ) $ ( 187 ) ( 67.3 ) $ ( 5,167 ) $ ( 155 ) $ — $ ( 155 )

Cumulative effect of accounting change

— — — ( 1 ) — — — ( 1 )

Comprehensive income:

Net loss — — — ( 684 ) — — —

Other comprehensive loss — — — — ( 30 ) — —

Total comprehensive loss ( 714 )

Non-controlling interest — — ( 2 ) — — — — ( 2 )

Net income (loss) — — — 1,285 — — — ( 2 ) 1,283

Other comprehensive income — — — — 54 — — 54

Total comprehensive income (loss) 1,285 54 1,339 ( 2 ) 1,337

Contributions from non-controlling interests — — 25 — — — — 25 13 38

Net activity related to restricted stock units — — ( 17 ) — — 0.4 31 14 — 14

— — ( 50 ) — — 0.5 54 4

Activity related to employee stock purchase plan

— — ( 1 ) — — — 1 —

Issuance of common stock — — ( 20 ) — — 0.4 35 15

Repurchase of common stock — — — — — ( 14.3 ) ( 1,443 ) ( 1,443 ) — ( 1,443 )

— — — — — ( 5.0 ) ( 113 ) ( 113 )

Balance at December 31, 2021 137.1 $ 1 $ 6,676 $ ( 185 ) $ ( 133 ) ( 81.2 ) $ ( 6,579 ) $ ( 220 ) $ 11 $ ( 209 )

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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 6 to these Consolidated Financial Statements.

directly or indirectly has a controlling financial interest (collectively, “we”, “our”, “us”, or the “Company”).

We operate the following reportable business segments:

We have completed the business acquisitions discussed in Note 6 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.

We present separately the financial data of our vehicle programs.

These programs are distinct from our 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.

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 our vehicle programs.

We believe it is appropriate to segregate the financial data of our vehicle programs because, ultimately, the source of repayment of such debt is the realization of such assets.

Liquidity and Management’s Plans

The continuing cases of COVID-19 and the developments surrounding the pandemic have had a material negative impact on all aspects of the Company’s business.

Significant events affecting travel and the overall economy have historically had an impact on vehicle rental volumes, with the full extent of the impact generally determined by the length of time the event influences travel decisions as well as general economic conditions.

The COVID-19 outbreak and resulting economic conditions have had, and the Company believes will continue to have, a significant adverse impact on its operations and vehicle rental volumes, and on its financial results and liquidity, and such negative impact may continue well beyond the containment of the outbreak.

The Company cannot assure its assumptions used to estimate its liquidity requirements will be correct because it has never previously experienced such a change in demand, and as a consequence, its ability to be predictive is uncertain.

In addition, the duration of the pandemic is uncertain.

Therefore, the Company has taken, and plans to take further actions to manage its liquidity, including reducing capital expenditures, operating expenses and the number of vehicles in its fleet.

The Company has no meaningful corporate debt maturities until 2023.

The Company plans to finance the routine Asset Backed Securities (“ABS”) maturities with program cash on hand, available revolving debt capacity and fleet sales.

As a result, based on current operational assumptions, the Company believes it has adequate liquidity beyond the next twelve months.

In April 2020, the Company entered into an amendment (the “Amendment”) to its senior credit facilities, consisting of an approximately $1.2 billion term loan maturing in 2027 and a $1.8 billion revolving credit facility maturing in 2023, which remain in place after the Amendment.

The Amendment provides for relief from the quarterly-tested leverage covenant contained in the credit agreement governing the senior credit facilities until the end of a specific relief period, including a holiday from such leverage covenant through

June 30, 2021, during which time (i) certain negative covenant exceptions are not available to the Company, (ii) pricing on the senior credit facilities is increased, (iii) the Company must comply with a liquidity covenant and additional reporting requirements and (iv) the Company must meet additional conditions to borrow under the revolving credit facility.

The COVID-19 pandemic, which rapidly spread across the globe in 2020, resulted in an economic slowdown and significant disruptions in travel that had a negative impact on our business, specifically a significant decline in vehicle rental volumes.

During the year ended December 31, 2021, global travel restrictions were eased, leading to an increase in travel demand and an improvement in general economic conditions.

We believe the full extent of the ongoing impact of this virus on our long-term operational performance and liquidity will depend on future developments, including those outside of our control, such as the spread of new variants of the virus which may be resistant to currently approved vaccines and the implementation of new or continued travel restrictions.

In April 2020, we entered into an amendment (the “Amendment”) to our senior credit facilities, consisting of an approximate ly $ 1.2 billion term loan maturing in 2027 and a $ 1.8 billion revolving credit facility maturing in 2023, which remain in place after the Amendment.

The Amendment provided for relief from a quarterly-tested leverage covenant contained in the credit agreement governing the senior credit facilities until June 30, 2021, during which time additional restrictions and requirements were also imposed.

We subsequently further amended the credit agreement in February 2021 to permit refinancing of certain existing indebtedness and in July 2021 to remove the restrictions imposed in April 2020, increase the revolving credit facility to $ 1.95 billion and extend the maturity of the facility to 2026.

As a result, we have no meaningful corporate debt maturities until 2024.

Summary of Significant Accounting Policies

Principles of Consolidation

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

in which we have a direct or indirect controlling financial interest and variable interest entities for which we have determined we are the primary beneficiary.

We consolidate joint venture activities when we have more than a 50% controlling interest and record non-controlling interests within stockholders’ equity and the statement of comprehensive income equal to the percentage of ownership interest retained in such entities by the respective non-controlling party.

Intercompany transactions have been eliminated in consolidation.

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Revenue Recognition

The Company derives revenues primarily by providing vehicle rentals and other related products and mobility services to commercial and leisure customers, as well as through licensing of its rental brands.

We derive revenues primarily by providing vehicle rentals and other related products and mobility services to commercial and leisure customers, as well as through licensing of our rental brands.

Other related products and mobility services include sales of collision and loss damage waivers under which a customer is relieved from financial responsibility arising from vehicle damage incurred during the rental;

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and rentals of other supplemental items including automobile towing equipment and other moving accessories and supplies.

The Company also receives payment from customers for certain operating expenses that it incurs, including airport concession fees that are paid by the Company in exchange for the right to operate at airports and other locations, as well as vehicle licensing fees.

In addition, the Company collects membership fees in connection with its car sharing business.

Beginning January 1, 2018, the Company recognized revenue when obligations under the terms of a contract with the customer were satisfied;

generally this occurred evenly over the contract (over time);

when control of the promised products or services was transferred to the customer.

Revenue was measured as the amount of consideration the Company expected to be entitled to receive in exchange for transferring products or services.

Certain customers may have received cash-based rebates, which were accounted for as variable consideration.

The Company estimated these rebates based on the expected amount to be provided to customers and reduced revenue recognized.

Vehicle rental and rental-related revenues were recognized evenly over the period of rental.

Beginning January 1, 2019, the Company combined all lease and non-lease components of its vehicle rental contracts for which the timing and pattern of transfer are the same and the lease component meets the classification of an operating lease.

For the years ended December 31, 2020 and 2019, vehicle rentals and other related products and mobility services are recognized evenly over the period of rental, which is on average five and four days, respectively.

We also receive payment from customers for certain operating expenses that we incur, including airport concession fees that are paid by us in exchange for the right to operate at airports and other locations, as well as vehicle licensing fees.

In addition, we collect membership fees in connection with our car sharing business.

We combine all lease and non-lease components of our vehicle rental contracts for which the timing and pattern of transfer are the same and the lease component meets the classification of an operating lease.

Vehicle rentals and other related products and mobility services are recognized evenly over the period of rental, which is on average approximately five days.

(See Note 3–Leases).

Licensing revenues principally consist of royalties paid by the Company’s licensees and are recorded as the licensees’ revenues are earned (over the rental period).

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.

The Company excludes from the measurement of its transaction price any tax assessed by a governmental authority that is both imposed on and concurrent with a specific revenue-producing transaction and collected from a customer.

Licensing revenues principally consist of royalties paid by our licensees and are recorded as the licensees’ revenues are earned (over the rental period).

We renew license agreements in the normal course of business and occasionally terminate, purchase or sell license agreements.

In connection with ongoing fees that we receive from our licensees pursuant to license agreements, we are required to provide certain services, such as training, marketing and the operation of reservation systems.

We exclude from the measurement of our transaction price any tax assessed by a governmental authority that is both imposed on and concurrent with a specific revenue-producing transaction and collected from a customer.

As a result, revenue is recorded net of such taxes collected.

Revenues and expenses associated with gasoline, airport concessions and vehicle licensing are recorded on a gross basis within revenues 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.

Effective January 1, 2019, revenues are recognized under ASU 2016-02, “Leases (Topic 842),” with the exception of royalty fee revenue derived from the Company licensees and revenue related to the Company’s customer loyalty program, which were approximately $ 159 million and $ 144 million for the years ended December 31, 2020 and 2019, respectively.

The following table presents the Company’s revenues disaggregated by geography.

Membership fees related to our car sharing business are generally nonrefundable, are deferred and recognized ratably over the period of membership.

Revenues are recognized under Leases (Topic 842) with the exception of royalty fee revenue derived from our licensees and revenue related to our customer loyalty program, which were approxima tely $ 127 million, $ 159 million and $ 144 million for the years ended December 31, 2021, 2020 and 2019, respectively.

The following table presents our revenues disaggregated by geography:

Year Ended December 31,

2021 2020 2019

Americas $ 7,557 $ 3,965 $ 6,352

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Total revenues $ 9,313 $ 5,402 $ 9,172

The following table presents the Company’s revenues disaggregated by brand.

The following table presents our revenues disaggregated by brand:

Year Ended December 31,

2021 2020 2019

Avis $ 4,894 $ 2,961 $ 5,250

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Deferred Revenue

The Company records deferred revenues when cash payments are received in advance of satisfying its performance obligations, including amounts that are refundable.

In addition, certain customers earn loyalty points on rentals, for which the Company defers a portion of its rental revenues generally equivalent to the estimated retail value of points expected to be redeemed.

The Company estimates points that will never be redeemed based upon actual redemption and expiration patterns.

We record deferred revenues when cash payments are received in advance of satisfying our performance obligations, including amounts that are refundable.

In addition, certain customers earn loyalty points on rentals, for which we defer a portion of our rental revenues generally equivalent to the estimated retail value of points expected to be redeemed.

We estimate points that will never be redeemed based upon actual redemption and expiration patterns.

Currently loyalty points expire after 12 months of member inactivity.

Future changes to expiration assumptions or expiration policy, or to program rules, may result in changes to deferred revenue as well as recognized revenues from the program.

The following table presents changes in deferred revenue associated with the Company’s customer loyalty program.

The following table presents changes in deferred revenue associated with our customer loyalty program:

Year Ended December 31,

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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, 2020 and 2019 were gains of $ 40 million and $ 9 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 .

We have designated our euro-denominated Notes as a hedge of our investment in euro-denominated foreign operations and, accordingly, record 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, Program Cash and Restricted Cash

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

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.

We consider highly liquid investments purchased with an original maturity of three months or less to be cash equivalents.

Program cash primarily represents amounts specifically designated to purchase assets under

vehicle programs and/or to repay the related debt, as such we consider it a restricted cash equivalent.

The following table provides a detail 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:

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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.

We capitalize 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.

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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.

We do not amortize goodwill, but assess 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.

We perform our annual impairment assessment in the fourth quarter of each year at the reporting unit level.

We assess 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.

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Impairment of Long-Lived Assets

The Company is required to assess long-lived assets for impairment whenever circumstances indicate impairment may have occurred.

We are 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.

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.

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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.

We acquire a portion of our 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.

We depreciate 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 regularly evaluates estimated residual values and adjusts depreciation rates as appropriate.

The estimation of residual values requires us 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.

We regularly evaluate estimated residual values and adjust 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.

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Advertising Expenses

Advertising costs are generally expensed in the period incurred and are recorded within selling, general and administrative expense in the Company’s Consolidated Statements of Operations.

During 2020, 2019 and 2018, advertising costs were approximately $ 54 million , $ 121 million and $ 116 million, respectively.

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.

Advertising costs are generally expensed in the period incurred and are recorded within selling, general and administrative expense in our Consolidated Statements of Operations.

During 2021, 2020 and 2019, advertising costs were approxim ately $ 81 million, $ 54 million and $ 121 million, respectively.

We account 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.

For information regarding the accounting for the effects of the Tax Cuts and Jobs Act (the “Tax Act”), see Note 9-Income Taxes.

As a result of the provisions of the Tax Act, the Company accounts for Global Intangible Low-Taxed Income (“GILTI”) as a component of current period income tax expense in the year incurred.

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.

As a result of the provisions of the Tax Cuts and Jobs Act, we account for Global Intangible Low-Taxed Income (“GILTI”) as a component of current period income tax expense in the year incurred.

We record net deferred tax assets to the extent we believe that it is more likely than not that these assets will be realized.

In making such determination, we consider 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 we were to determine that we would be able to realize the deferred income tax assets in the future in excess of their net recorded amount, we would adjust the valuation allowance, which would reduce the provision for income taxes.

Fair Value Measurements

The Company measures the fair value of assets and liabilities and discloses the source for such fair value measurements.

We measure the fair value of assets and liabilities and discloses the source for such fair value measurements.

Financial assets and liabilities are classified as follows:

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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 fair value of our 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).

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, we have 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.

Our 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 us 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.

We principally use discounted cash flows to value these instruments.

These models take into account a variety of factors including, where applicable, maturity, currency exchange rates, our interest rate yield curves 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.

Derivative instruments are used as part of our 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.

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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 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) and reclassified into earnings in the same period or periods during which the hedged transaction affects

earnings and is presented in the same income statement line item as the earnings effect of the hedged item.

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).

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Self-Insurance Reserves

The Consolidated Balance Sheets include $ 396 million and $ 441 million of liabilities associated with retained risks of liability to third parties as of December 31, 2020 and 2019, respectively.

The Consolidated Balance Sheets inclu de $ 383 million and $ 396 million of liabilities associated with retained risks of liability to third parties as of December 31, 2021 and 2020, 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.

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, our 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 we are 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 $ 53 million and $ 56 million as of December 31, 2020 and 2019, respectively, related to workers’ compensation, health and welfare and other employee benefit programs.

The Consolidated Balance Sheets also include liabilities of approxim ately $ 48 million and $ 53 million as of December 31, 2021 and 2020, 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.

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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 vests.

Our 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 vests.

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 restricted stock units using the market price of our 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 expected volatility is based on a combination of the historical and implied volatility of our 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.

Treasury yield curve in effect at the time of grant and, since we do not currently pay or plan to pay a dividend on our 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.

We use 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.

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.

We record 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).

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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.

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.

These costs are comprised of expenses primarily related to acquisition-related activities such as due-diligence and other advisory costs, expenses related to the integration of the acquiree’s operations with our comparable expenses, 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.

We account for investments with controlling interest between 20% and 50% using the equity method of accounting and record our proportional share of net income or loss within operating expenses in the Consolidated Statements of Operations.

We assess 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, 2020 and 2019, the Company had investments in joint ventures with a carrying value of $ 63 million and $ 56 million, respectively, recorded within other non-current assets on the Consolidated Balance Sheets.

As of December 31, 2021 and 2020, we had investments with a carrying val ue of $ 72 million and $ 63 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 2020, 2019 and 2018, the amounts realized from the sale of equity investments and dividend income was $5 million, $ 10 million and $ 5 million, respectively.

The Company classifies long-lived assets and liabilities to be disposed of as held for sale in the period in which they are available for immediate sale in their present condition and the sale is probable and expected to be completed within one year.

The Company initially measures assets and liabilities held for sale at the lower of their carrying value or fair value less costs to sell and assesses their fair value each reporting period until disposed.

When the divestiture represents a strategic shift that has, or will have, a major effect on the Company’s operations and financial results, the disposal is presented as a discontinued operation.

During 2018, the Company entered into a definitive stock purchase agreement to sell the Company’s 50% equity method investment in Anji Car Rental & Leasing Company Limited (“China”), located in China, to Shanghai Automotive Industry Sales Company, Ltd., a 50% owner of China.

Upon receiving clearance from applicable regulatory authorities in China during 2019, the Company completed the sale for $ 64 million, net of cross-border withholding taxes and recorded a $ 44 million gain within operating expenses.

China’s operations are reported within the Company’s International segment.

During 2018, as a result of the sale of a non-core business, the Company recognized a gain of $ 4 million within operating expenses on the Consolidated Statements of Operations.

During 2021, 2020 and 2019, the

amounts realized from the sale of equity investments and dividend income was $ 10 million , $ 5 million and $ 10 million, respectively.

We classify long-lived assets and liabilities to be disposed of as held for sale in the period in which they are available for immediate sale in their present condition and the sale is probable and expected to be completed within one year.

We initially measure assets and liabilities held for sale at the lower of their carrying value or fair value less costs to sell and assesses their fair value each reporting period until disposed.

When the divestiture represents a strategic shift that has, or will have, a major effect on our operations and financial results, the disposal is presented as a discontinued operation.

In May 2021, we completed the sale of our operation in Argentina to Urbiz S.A.

for $ 4 million.

As part of the sale, Urbiz S.A.

agreed to pay the purchase price, plus interest, over two years for the right to operate the Avis and Budget brands.

During the year ended December 31, 2021, we recorded a loss of $ 14 million , net of the impact of foreign currency adjustments, within restructuring and other related charges.

In addition, we paid severance to terminated employees of $ 2 million .

In December 2021, we entered into a stock purchase agreement with Spuigroep B.V.

to sell our operations in the Netherlands.

Upon completion of the sale, Spuigroep B.V.

will pay approximately $ 24 million.

At December 31, 2021, we had assets held for sale of $ 31 million recorded within non-current assets and liabilities held for sale of $ 9 million recorded within non-current liabilities.

The Netherlands operations are reported within our International reporting segment.

Nonmarketable Equity Securities

The Company classifies investments without readily determinable fair values that are not accounted for under the equity method as nonmarketable equity securities.

We classify investments without readily determinable fair values that are not accounted for under the equity method as nonmarketable equity securities.

The accounting guidance requires nonmarketable equity securities to be recorded at cost and adjusted to fair value at each reporting period.

The Company applies the measurement alternative, which allows these investments to be recorded at cost, less impairment, if any, and subsequently adjust for observable price changes of identical or similar

investments of the same issuer.

We apply the measurement alternative, which allows these investments to be recorded at cost, less impairment, if any, and subsequently adjust for observable price changes of identical or similar investments of the same issuer.

Any changes in value are recorded within operating expenses .

As of December 31, 2020 and 2019, the Company had investments in nonmarketable equity securities recorded within other non-current assets with a carrying value of $ 8 million, respectively.

The Company realized a $ 12 million gain from the sale of a nonmarketable equity security during the year ended December 31, 2019.

As of December 2020, we had investments in nonmarketable equity securities recorded within other non-current assets with a carrying value of $ 8 million .

We realized a $ 12 million gain from the sale of a nonmarketable equity security during the year ended December 31, 2019.

There were no material adjustments made to the carrying amounts of nonmarketable equity securities during the years ended December 31, 2021 and 2020.

As of December 31, 2021, the securities are marketable equity securities with a fair value of $ 7 million, which are recorded within other non-current assets.

Adoption of New Accounting Pronouncements

Intangibles—Goodwill and Other—Internal-Use Software

On January 1, 2020, as the result of a new accounting pronouncement, the Company adopted Accounting Standard Update (“ASU”) 2018-15 “Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement That Is a Service Contract,” which provides guidance for determining when the arrangement includes a software license.

The amendments align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal use software license).

The amendments in this Update also require the entity to expense the capitalized implementation costs of a hosting arrangement that is a service contract over the term of the hosting arrangement, to present the expense in the same line in its statement of operations as the fees associated with the hosting element (service) of the arrangement and classify payments for capitalized implementation costs in its statement of cash flows in the same manner as payments made for fees associated with the hosting element.

The entity is also required to present the capitalized implementation costs in its balance sheet in the same line that a prepayment for the fees of the associated hosting arrangement would be presented.

The adoption of this accounting pronouncement did not have a material impact on the Company's Consolidated Financial Statements.

Fair Value Measurement

On January 1, 2020, as the result of a new accounting pronouncement, the Company adopted ASU 2018-13, “Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement,” which adds, removes, and modifies disclosure requirements related to fair value measurements.

The adoption of this accounting pronouncement did not have a material impact on the Company's Consolidated Financial Statements.

Measurement of Credit Losses on Financial Instruments

On January 1, 2020, as the result of a new accounting pronouncement, the Company adopted ASU 2016-13, “Financial Instruments—Credit Losses (Topic 326):

Measurement of Credit Losses on Financial Instruments,” and related updates 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.

The adoption of this accounting pronouncement did not have a material impact on the Company's Consolidated Financial Statements.

Financial Disclosures About Guarantors and Issuers of Guaranteed Securities and Affiliates Whose Securities Collateralize a Registrant’s Securities

During first quarter 2020, the Company early adopted the Securities and Exchange Commission’s (the “SEC”), “Financial Disclosures About Guarantors and Issuers of Guaranteed Securities and Affiliates Whose Securities Collateralize a Registrant’s Securities” rules, which simplify the disclosure requirements related to the Company’s registered securities under Rule 3-10 of Regulation S-X.

The final rule also allows for the simplified disclosure to be included within Management’s Discussion and Analysis of Financial Condition and Results of Operations.

During third quarter 2020, the Company redeemed its remaining $100 million of publicly registered debt securities (see Note 11—Long-term corporate debt and borrowing arrangements for details).

The Company’s remaining outstanding debt securities were issued in private placements exempt

from the registration requirements of the federal securities laws, and therefore, such disclosure is not required.

Accounting for Lease Concessions during COVID-19 Pandemic

In April 2020, the Financial Accounting Standards Board (“FASB”) issued a question-and-answer document to address questions on the application of the lease accounting guidance for lease concessions related to the effects of the COVID-19 pandemic.

The FASB provided for companies to make an election to account for this rent relief in the current period and not trigger a lease modification under Topic 842 - Leases.

The Company made this election.

Financial Disclosures, Selected Financial Data and Supplementary Financial Information

In February 2021, the Company early adopted the SEC’s, Selected Financial Data and Supplementary Financial Information rule amendments for Regulation S-K Items 301 and 302(a), which eliminates the requirement for five years of selected financial data and replaces the requirement for two years of tabular selected quarterly financial information with a principles-based requirement to only disclose if material retrospective changes occur.

Recently Issued Accounting Pronouncements

Simplifying the Accounting for Income Taxes

On January 1, 2021, as the result of a new accounting pronouncement, the Company adopted ASU 2019-12, “Simplifying the Accounting for Income Taxes,” which simplifies the accounting for income taxes by removing certain exceptions and improving the application of existing guidance.

The adoption of this accounting pronouncement did not have a material impact on the Company's Consolidated Financial Statements.

On January 1, 2021, as the result of a new accounting pronouncement, we adopted Accounting Standard Update (“ASU”) 2019-12, “Simplifying the Accounting for Income Taxes,” which simplifies the accounting for income taxes by removing certain exceptions and improving the application of existing guidance.

The adoption of this accounting pronouncement did not have a material impact on our Consolidated Financial Statements.

Compensation—Retirement Benefits—Defined Benefit Plans

On January 1, 2021, as the result of a new accounting pronouncement, the Company adopted ASU 2018-14, “Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans,” which adds, removes, and clarifies disclosure requirements related to defined benefit pension and other postretirement plans.

These changes are part of the FASB’s disclosure framework project, which the Board launched in 2014 to improve the effectiveness of disclosures in notes to financial statements.

The adoption of this accounting pronouncement did not have a material impact on the Company's Consolidated Financial Statements.

On January 1, 2019, as the result of a new accounting pronouncement, the Company adopted Topic 842 along with related updates.

The Company utilized the transition method allowing entities to only apply the new lease standard in the year of adoption.

The following table presents the Company’s lease revenues disaggregated by geography.

December 31, 2020 Year Ended

December 31, 2019

On January 1, 2021, as the result of a new accounting pronouncement, we adopted ASU 2018-14, “Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans,” which adds, removes, and clarifies disclosure requirements related to defined benefit pension and other postretirement plans.

These changes are part of the Financial Accounting Standards Board (“FASB”) disclosure framework project, which the Board launched in 2014 to improve the effectiveness of disclosures in notes to financial statements.

The adoption of this accounting pronouncement did not have a material impact on our Consolidated Financial Statements.

Recently Issued Accounting Pronouncements

Accounting for Contract Assets and Contract Liabilities from Contracts with Customers

In October 2021, the FASB issued ASU 2021-08, “Accounting for Contract Assets and Contract Liabilities from Contracts with Customers,” which amends Topic 805 to add contract assets and contract liabilities to the list of exceptions to the recognition and measurement principles that apply to business combinations and to require an acquirer to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606.

ASU 2021-08 becomes effective for us on January 1, 2023.

Early adoption is permitted on a retrospective or prospective basis.

The adoption of this accounting pronouncement is not expected to have a material impact on our Consolidated Financial Statements.

Reference Rate Reform

In January 2021, the FASB issued ASU 2021-01, “Reference Rate Reform (Topic 848),” which amends ASU 2020-04 and clarifies the scope and guidance of Topic 848 to allow derivatives impacted by the reference rate reform to qualify for certain optional expedients and exceptions for contract modifications and hedge accounting.

The guidance is optional and is effective for a limited period of time through December 31, 2022.

As of December 31, 2021, this guidance had no impact on our Consolidated Financial Statements and we will continue to evaluate this guidance.

The following table presents our lease revenues disaggregated by geography:

Year Ended December 31,

2021 2020 2019

Americas $ 7,501 $ 3,864 $ 6,303

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Total lease revenues $ 9,186 $ 5,243 $ 9,028

The following table presents the Company’s lease revenues disaggregated by brand.

December 31, 2020 Year Ended

December 31, 2019

The following table presents our lease revenues disaggregated by brand:

Year Ended December 31,

2021 2020 2019

Avis $ 4,828 $ 2,851 $ 5,163

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Other includes Zipcar and other operating brands.

The Company has operating and finance leases for rental locations, corporate offices, vehicle rental fleet and equipment.

Many of the Company’s operating leases for rental locations contain concession agreements with various airport authorities that allow the Company to conduct its vehicle rental operations on site.

We have operating and finance leases for rental locations, corporate offices, vehicle rental fleet and equipment.

Many of our operating leases for rental locations contain concession agreements with various airport authorities that allow us to conduct our vehicle rental operations on site.

In general, concession fees for airport locations are based on a percentage of total commissionable revenue as defined by each airport authority, some of which are subject to minimum annual guaranteed amounts.

Concession fees other than minimum annual guaranteed amounts are not included in the measurement of operating lease ROU assets and operating lease liabilities, and are recorded as variable lease expense as incurred.

The Company’s operating leases for rental locations often also require the Company to pay or reimburse operating expenses.

The Company leases a portion of its vehicles under operating leases.

As of December 31, 2020 and 2019, the Company has guaranteed up to $ 202 million and $ 314 million, respectively, of residual values for these vehicles at the end of their respective lease terms.

The Company believes that, based on current market conditions, the net proceeds from the sale of these vehicles at the end of their lease terms will equal or exceed their net book values and therefore has not recorded a liability related to guaranteed residual values.

Our operating leases for rental locations often also require us to pay or reimburse operating expenses.

We lease a portion of our vehicles under operating leases.

As of December 31, 2021 and 2020, we have guaranteed up to $ 102 million and $ 202 million, respectively, of residual values for these vehicles at the end of their respective lease terms.

We believe that, based on current market conditions, the net proceeds from the sale of these vehicles at the end of their lease terms will equal or exceed their net book values and therefore have not recorded a liability related to guaranteed residual values.

The components of lease expense are as follows:

December 31, 2020 Year Ended

December 31, 2019

Year Ended December 31,

2021 2020 2019

Property leases (a)

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Amortization of ROU assets (b)

$ 37 $ 33 $ 42

Interest on lease liabilities (c)

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Total vehicle lease expense $ 197 $ 231 $ 301

(a) Primarily included in operating expenses and includes $60 million of minimum annual guaranteed rent in excess of concession fees as defined in our rental concession agreement for the year ended December 31, 2020.

(a) Primarily included in operating expenses and includes $( 2 ) million and $ 60 million of minimum annual guaranteed rent in excess of concession fees as defined in our rental concession agreement for the year ended December 31, 2021 and 2020, respectively.

(b) Included in vehicle depreciation and lease charges, net.

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Supplemental balance sheet information related to leases is as follows:

As of December 31, 2020 As of December 31, 2019

As of December 31,

Property leases

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Supplemental cash flow information related to leases is as follows:

Year Ended December 31, 2020 Year Ended December 31, 2019

Year Ended December 31,

2021 2020 2019

Cash payments for lease liabilities within operating activities:

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2021 2020 2019

Net income (loss) for basic and diluted EPS $ ( 684 ) $ 302 $ 165

Net income (loss) attributable to Avis Budget Group, Inc.

for basic and diluted EPS $ 1,285 $ ( 684 ) $ 302

Basic weighted average shares outstanding 64.9 70.5 75.2

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Diluted weighted average shares outstanding 66.1 70.5 75.7

Earnings per share:

Earnings (loss) per share:

Basic $ 19.79 $ ( 9.71 ) $ 4.01

Diluted $ 19.44 $ ( 9.71 ) $ 3.98

The following table summarizes the Company’s outstanding common stock equivalents that were anti-dilutive and therefore excluded from the computation of diluted EPS (shares in millions):

The following table summarizes our outstanding common stock equivalents that were anti-dilutive and therefore excluded from the computation of diluted EPS (shares in millions):

As of December 31,

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Restructuring

During first quarter 2020, the Company initiated a global restructuring plan to reduce operating costs, such as headcount and facilities, due to declining reservations and revenue resulting from the COVID-19 outbreak (“2020 Optimization Plan”).

During the year ended December 31, 2020, as part of this process, the Company formally communicated to and terminated approximately 4,300 employees.

The Company expects no further restructuring expense related to this initiative.

During third quarter 2019, the Company initiated a restructuring plan to exit its operations in Brazil by closing rental facilities, disposing of assets and terminating personnel (“Brazil”).

As of December 31, 2020, the Company terminated the employment of approximately 22 employees.

The Company expects further restructuring expense of approximately $ 2 million, excluding effects of currency exchange rates, related to this initiative.

During first quarter 2019, the Company initiated a restructuring plan to drive global efficiency by improving processes and consolidating functions, and to create new objectives and strategies for its truck rental operations in the U.S.

During the first quarter of 2021, we initiated a global restructuring plan to focus on cost discipline by reviewing headcounts, facilities and contractor agreements.

We are transforming our business as it prepares to exit the COVID-19 crisis by controlling fixed costs and matching variable costs to demand (“T21”).

As of December 31, 2021, we formally communicated the termination of employment to approximately 460 employees, as part of this process, and terminated approximately 455 of these employees.

We expect further restructuring expense of approximately $ 5 million related to this initiative in first quarter 2022.

During first quarter 2020, we initiated a global restructuring plan to reduce operating costs, such as headcount and facilities, due to declining reservations and revenue resulting from the COVID-19 outbreak (“2020 Optimization Plan”).

We expect no further restructuring expense related to this initiative.

During third quarter 2019, we initiated a restructuring plan to exit our operations in Brazil by closing rental facilities, disposing of assets and terminating personnel (“Brazil”).

We expect no further restructuring expense related to this initiative.

During first quarter 2019, we initiated a restructuring plan to drive global efficiency by improving processes and consolidating functions, and to create new objectives and strategies for our truck rental operations in the U.S.

by reducing headcount, large vehicles and rental locations (“T19”).

This initiative is complete.

During first quarter 2018, the Company initiated a strategic restructuring plan to improve processes and reduce headcount in response to its new workforce planning technology that allows more effective management of staff levels (“Workforce planning”).

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.

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”).

This initiative is complete.

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 first quarter 2018, we initiated a strategic restructuring plan to improve processes and reduce headcount in response to our new workforce planning technology that allows more effective management of staff levels (“Workforce planning”).

This initiative is 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.

The costs associated with this initiative primarily represent severance, outplacement services and other costs associated with employee terminations, the majority of which have been settled in cash.

This initiative is complete.

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

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

Personnel Related Facility Related Other (a)

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Restructuring expense:

Workforce planning 11 — 2 13

Truck initiative 1 — 4 5

Restructuring payment/utilization:

Workforce planning ( 11 ) — ( 1 ) ( 12 )

Truck initiative ( 1 ) — ( 4 ) ( 5 )

T19 24 — 31 55

T15 ( 1 ) — — ( 1 )

Balance as of December 31, 2018 1 — 1 2

Restructuring expense:

T19 24 — 31 55

Brazil 1 1 5 7

13 unchanged sentences

Balance as of December 31, 2020 4 2 3 9

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

Americas International Total

Balance at January 1, 2018 $ 1 $ 3 $ 4

Restructuring expense:

Workforce planning 4 9 13

Truck initiative 5 — 5

T21 26 4 2 32

T19 — — ( 2 ) ( 2 )

Restructuring payment/utilization:

Workforce planning ( 4 ) ( 8 ) ( 12 )

Truck initiative ( 5 ) — ( 5 )

T21 ( 17 ) ( 4 ) ( 4 ) ( 25 )

2020 Optimization ( 5 ) — — ( 5 )

T19 ( 1 ) — 2 1

Balance as of December 31, 2021 $ 7 $ 2 $ 1 $ 10

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

Americas International Total

Balance at January 1, 2019 $ — $ 2 $ 2

Restructuring expense:

5 unchanged sentences

Restructuring expense:

2020 Optimization 31 48 79

2020 Optimization Plan 31 48 79

Restructuring payment/utilization:

2 unchanged sentences

Balance as of December 31, 2020 3 6 9

Restructuring expense:

T19 ( 2 ) — ( 2 )

Restructuring payment/utilization:

T21 ( 4 ) ( 21 ) ( 25 )

2020 Optimization Plan ( 2 ) ( 3 ) ( 5 )

T19 2 ( 1 ) 1

Balance as of December 31, 2021 $ 2 $ 8 $ 10

Other Related Charges

Limited Voluntary Opportunity Plans (“LVOP”)

During 2020, the Company offered a voluntary termination program to certain employees in field operations, shared services, and general and administrative functions for a limited time.

During the second quarter of 2021, our operations in our International segment offered a voluntary termination program to certain employees in field operations 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, 2020, the Company recorded other related charges of approximately $ 18 million in connection with the LVOP.

As of December 31, 2020, approximately 400 qualified employees elected to participate in the plan and the employment of all participants had been terminated.

During the year ended December 31, 2021, we recorded other related charges of approximately $ 17 million in connection with the LVOP.

As of December 31, 2021, approximately 130 employees elected to participate in the plan and the majority of the participants have been terminated.

During 2020, we offered a voluntary termination program to certain employees in 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, 2020, we recorded other related charges of approximately $ 18 million in connection with the LVOP.

Officer Separation Costs

In August 2020, the Company announced the resignation of John F.

North, III as the Company’s Chief Financial Officer.

In August 2020, we announced the resignation of John F.

North, III as our Chief Financial Officer.

Following his post-resignation transition to an advisory position, Mr.

1 unchanged sentence

In connection with Mr.

North’s departure, the Company recorded other related charges of approximately $ 5 million, inclusive of accelerated stock-based compensation expense for the year ended December 31, 2020.

In March 2020, the Company announced the departure of Michael K.

North’s departure, we recorded other related charges of approximately $ 5 million, inclusive of accelerated stock-based compensation expense for the year ended

December 31, 2020.

In March 2020, we announced the departure of Michael K.

Tucker as Executive Vice President, General Counsel effective March 27, 2020.

In connection with Mr.

Tucker’s separation, the Company recorded other related charges of approximately $ 2 million for the year ended December 31, 2020.

In May 2019, the Company announced the resignation of Larry D.

De Shon as the Company’s President and Chief Executive Officer.

De Shon continued to serve in his role until a successor had been named and was employed by the Company through December 31, 2019.

Tucker’s separation, we recorded other related charges of approximately $ 2 million for the year ended December 31, 2020.

In May 2019, we announced the resignation of Larry D.

De Shon as our President and Chief Executive Officer.

De Shon continued to serve in his role until a successor had been named and was employed by us through December 31, 2019.

In connection with Mr.

De Shon’s departure, the Company recorded other related charges of approximately $ 1 million for consulting fees and $ 14 million, inclusive of accelerated stock-based compensation expense, for the years ended December 31, 2020 and 2019, respectively.

In March 2019, the Company announced the resignation of Mark J.

Servodidio as the Company’s President, International effective June 14, 2019.

De Shon’s departure, we recorded other related charges of approximately $ 1 million for consulting fees and $ 14 million, inclusive of accelerated stock-based compensation expense, for the years ended December 31, 2020 and 2019, respectively.

In March 2019, we announced the resignation of Mark J.

Servodidio as our President, International effective June 14, 2019.

In connection with Mr.

Servodidio’s departure, the Company recorded other related charges of approximately $ 4 million, inclusive of accelerated stock-based compensation expense.

Servodidio’s departure, we recorded other related charges of approximately $ 4 million, inclusive of accelerated stock-based compensation expense.

Avis and Budget Licensees

During 2020, the Company completed the acquisitions of various licensees in North America and Europe, for approximately $28 million, plus $22 million for acquired fleet.

These investments were in-line with the Company’s strategy to re-acquire licensees when advantageous to expand its footprint of Company-operated locations.

The acquired fleet was financed under the Company’s existing financing arrangements.

During 2021, we completed the acquisitions of various licensees in Europe and North America, for approximately $ 23 million, plus $ 22 million for acquired fleet.

These investments were in-line with our strategy to re-acquire licensees when advantageous to expand our footprint of Company-operated locations.

The acquired fleet was financed under our existing financing arrangements.

In connection with these acquisitions, approximately $ 28 million was recorded to other intangibles related to franchise agreements.

The license agreements are being amortized over a weighted average useful life of approxima tely one year .

The fair value of the assets acquired and liabilities assumed has not yet been finalized and is therefore subject to change.

During 2020, we completed the acquisitions of various licensees in North America and Europe, for approximately $ 28 million, plus $ 22 million for acquired fleet.

These investments were in-line with our strategy to re-acquire licensees when advantageous to expand our footprint of Company-operated locations.

The acquired fleet was financed under our existing financing arrangements.

In connection with these acquisitions, approximately $ 28 million was recorded in other intangibles related to license agreements.

The license agreements are being amortized over a weighted average useful life of approximately two years .

The fair value of the assets acquired and liabilities assumed has not yet been finalized and is therefore subject to change.

Avis and Budget Licensees

In 2019, the Company completed the acquisitions of various licensees, primarily in North America, for approximately $ 55 million, plus $ 27 million for acquired fleet, of which $ 74 million was paid in 2019 and the remaining purchase price was primarily paid in 2020.

These investments were in-line with the Company’s strategy to re-acquire licensees when advantageous to expand its footprint of Company-operated locations.

The acquired fleet was financed under the Company’s existing financing arrangements.

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 Americas reportable segment.

Differences between the preliminary allocation of purchase price and the final allocation were not material for Avis and Budget Licensees.

During 2019, we completed the acquisitions of various licensees, primarily in North America, for approximately $ 55 million, plus $ 27 million for acquired fleet, of which $ 74 million was paid in 2019 and the remaining purchase price was primarily paid in 2020.

These investments were in-line with our strategy to re-acquire licensees when advantageous to expand our footprint of Company-operated locations.

The acquired fleet was financed under our existing financing arrangements.

The excess of the purchase price over preliminary fair value of net assets acquired was allocated to goodwill, which was assigned to our Americas reportable segment.

In connection with these acquisitions, approximately $ 21 million was recorded in goodwill, other intangibles of $ 24 million related to license agreements and $ 7 million related to customer relationships.

25 unchanged sentences

Total $ 67 $ 65 $ 59

Based on the Company’s amortizable intangible assets at December 31, 2020, the Company expects related amortization expense of approximately $ 59 million for 2021, $ 35 million for 2022, $ 26 million for 2023, $ 23 million for 2024 and $ 18 million for 2025 excluding effects of currency exchange rates.

Based on our amortizable intangible assets at December 31, 2021, we expect related amortization expens e of approximately $ 47 million for 2022, $ 28 million for 2023, $ 23 million for 2024, $ 16 million for 2025 and $ 15 million for 2026 excludin g 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, 2019 $ 2,126 $ 1,084 $ 3,210

Goodwill as of January 1, 2020 $ 2,141 $ 1,078 $ 3,219

Accumulated impairment losses as of January 1, 2020 ( 1,587 ) ( 531 ) ( 2,118 )

Goodwill as of January 1, 2020 554 547 1,101

Acquisitions 21 — 21

Currency translation adjustments and other ( 1 ) 37 36

16 unchanged sentences

Vehicle depreciation and lease charges, net $ 1,197 $ 1,368 $ 2,063

At December 31, 2020, 2019 and 2018, the Company had payables related to vehicle purchases included in liabilities under vehicle programs - other of $ 232 million, $ 418 million and $ 472 million, respectively, and receivables related to vehicle sales included in assets under vehicle programs - receivables from vehicle manufacturers and other of $ 162 million, $ 576 million and $ 622 million, respectively.

On December 22, 2017 the Tax Act made substantial changes to corporate income tax laws.

Among the key provisions were a U.S.

corporate tax rate reduction from 35% to 21% effective for tax years beginning January 1, 2018 and a one-time transition tax on the deemed repatriation of cumulative earnings from foreign subsidiaries and changes to U.S.

taxation of foreign earnings from a worldwide to a territorial tax system effective for tax years beginning January 1, 2018.

The Company recognized the effects of the Tax Act in its Consolidated Financial Statements in accordance with Staff Accounting Bulletin No.

118, which provides SEC staff guidance for the application of FASB Accounting Standards Codification Topic 740, Income Taxes, in the reporting period that the Tax Act was signed into law.

In 2017 the Company recorded a provisional income tax benefit of $ 317 million related to the remeasurement of its net deferred income tax liabilities as a result of the reduced corporate tax rate, and a provisional tax expense of $ 104 million for the one-time transition tax on the deemed repatriation of cumulative foreign subsidiary earnings.

The Company completed the accounting for the effects of the Tax Act during 2018 and recorded an additional income tax expense of $ 30 million for the one-time transition tax on the deemed repatriation of foreign earnings.

At December 31, 2021, 2020 and 2019, we had payables related to vehicle purchases included in liabilities under vehicle programs - other o f $ 142 million, $ 232 million and $ 418 million, respectively, and receivables related to vehicle sales included in assets under vehicle programs - receivables from vehicle manufacturers and other of $ 134 million, $ 162 million and $ 576 million, respectively.

The provision for (benefit from) income taxes consists of the following:

8 unchanged sentences

Foreign ( 9 ) ( 123 ) ( 107 )

Deferred income tax provision ( 317 ) ( 103 ) 14

Deferred income tax provision (benefit) 378 ( 317 ) ( 103 )

Provision for (benefit from) income taxes $ 425 $ ( 272 ) $ ( 15 )

Pretax income for domestic and foreign operations consists of the following:

Pretax income (loss) for domestic and foreign oper ations consists of the following:

Year Ended December 31,

12 unchanged sentences

Provision for doubtful accounts 18 8

Other 100 110

Valuation allowance (a)

7 unchanged sentences

Deferred income tax assets, net $ 1,615 $ 1,198

(a) The valuation allowance of $ 204 million at December 31, 2020 relates to tax loss carryforwards and certain deferred tax assets of $ 195 million and $ 9 million, respectively.

The valuation allowance will be reduced when and if the Company determines it is more likely than not that the related deferred income tax assets will be realized.

(a) T he valuation allowance of $ 167 million at December 31, 2021 relates to tax loss carryforwards and certain deferred tax assets of $ 163 million and $ 4 million, respectively.

The valuation allowance will be reduced when and if we determine it is more likely than not that the related deferred income tax as sets will be realized.

The valuation allowance of $ 204 million at December 31, 2020 relates to tax loss carryforwards and certain deferred tax assets of $ 195 million and $ 9 million, respectively.

The valuation allowance will be reduced when and if the Company determines it is more likely than not that the related deferred income tax assets will be realized.

The valuation allowance will be reduced when and if we determine it is more likely than not that the related deferred income tax assets will be realized.

The decrease in valuation allowance as compared to the year ended December 31, 2020 relates to the expiration of certain federal net operating loss carryforwards for which the deferred income tax asset was not more likely than not to be realized.

As of December 31, 2021, the net operating loss deferred tax asset and corresponding valuation allowance were reduced.

Deferred income tax assets and liabilities related to vehicle programs are comprised of the following:

7 unchanged sentences

Deferred income tax liabilities under vehicle programs, net $ 2,242 $ 1,383

At December 31, 2020, the Company had U.S.

At December 31, 2021, we had U.S.

federal net operating loss carryforwards of approximately $ 5.1 billion.

The majority of the net operating loss carryforwards have an indefinite utilization period pursuant to the Tax Act and a significant remaining portion expires by 2031.

Such net operating loss carryforwards are primarily related to accelerated depreciation of the Company’s U.S.

Currently, the Company does not record valuation allowances on the majority of its U.S.

Such net operating loss carryforwards are primarily related to accelerated depreciation of our U.S.

Currently, we do not record valuation allowances on

the majority of our U.S.

federal tax loss carryforwards as there are adequate deferred tax liabilities that could be realized within the carryforward period.

At December 31, 2020, the Company had foreign net operating loss carryforwards of approximately $ 1.2 billion with an indefinite utilization period.

At December 31, 2020, the Company had undistributed earnings of certain foreign subsidiaries of approximately $ 0.9 billion that it has indefinitely reinvested, and on which it has not recognized deferred taxes.

At December 31, 2021, we had foreign net operating loss carryforwards of approximately $ 1.2 billion, the majority of which has an indefinite utilization period.

At December 31, 2021, we had undistributed earnings of certain foreign subsidiaries of approximately $ 1.0 billion that we have indefinitely reinvested, and on which we have not recognized deferred taxes.

Estimating the amount of potential tax is not practicable because of the complexity and variety of assumptions necessary to compute the tax.

The reconciliation between the U.S.

federal income tax statutory rate and the Company’s effective income tax rate is as follows:

federal income tax statutory rate and our effective income tax rate is as follows:

Year Ended December 31,

7 unchanged sentences

Stock-based compensation ( 0.3 ) ( 0.1 ) —

Tax Act (benefit) expense — — 11.2

Other non-deductible (non-taxable) items 0.6 ( 0.4 ) ( 1.4 )

5 unchanged sentences

Additions for tax positions related to current year 4 4 6

Additions for tax positions for prior years 3 — —

Reductions for tax positions for prior years ( 3 ) ( 1 ) ( 8 )

3 unchanged sentences

Balance, December 31 $ 58 $ 57 $ 54

The Company does not anticipate that total unrecognized tax benefits will change significantly in 2021.

The Company is subject to taxation in the United States and various foreign jurisdictions.

We do not anticipate that total unrecognized tax benefits will change significantly in 2022.

We are subject to taxation in the United States and various foreign jurisdictions.

As of December 31, 2021, the 2007 through 2020 tax years generally remain subject to examination by the federal tax authorities.

1 unchanged sentence

In significant foreign jurisdictions, the 2012 through 2020 tax years generally remain subject to examination by their respective tax authorities.

Substantially all of the gross amount of the unrecognized tax benefits at December 31, 2020, 2019 and 2018, if recognized, would affect the Company’s provision for, or benefit from, income taxes.

As of December 31, 2020, the Company’s unrecognized tax benefits were offset by tax loss carryforwards and other deferred tax assets in the amount of $38 million.

Substantially all of the gross amount of the unrecognized tax benefits at December 31, 2021, 2020 and 2019, if recognized, would affect our provision for, or benefit from, income taxes.

As of December 31, 2021, our unrecognized tax benefits were offset by tax loss carryforwards and other deferred tax assets in the amount of $ 33 million.

The following table presents unrecognized tax benefits:

2 unchanged sentences

Accrued interest payable on potential tax liabilities (b)

(a) Pursuant to the agreements governing the disposition of certain subsidiaries in 2006, the Company is entitled to indemnification for certain pre-disposition tax contingencies.

As of December 31, 2020 and 2019, $ 13 million, respectively, of unrecognized tax benefits are related to tax contingencies for which the Company believes it is entitled to indemnification.

(b) The Company recognizes potential interest related to unrecognized tax benefits within interest expense related to corporate debt, net on the accompanying Consolidated Statements of Operations.

(a) Pursuant to the agreements governing the disposition of certain subsidiaries in 2006, we are entitled to indemnification for certain predisposition tax contingencies.

As of December 31, 2021 and 2020, $ 13 million, respectively, of unrecognized tax benefits are related to tax contingencies for which we believe it is entitled to indemnification.

(b) We recognize potential interest related to unrecognized tax benefits within interest expense related to corporate debt, net on the accompanying Consolidated Statements of Operations.

Penalties incurred during the years ended December 31, 2021, 2020 and 2019, were not significant and were recognized as a component of the provision for income taxes .

2 unchanged sentences

As of December 31,

Prepaid expenses $ 161 $ 234

Sales and use taxes $ 238 $ 147

Other 148 141

Prepaid expenses 205 161

Other current assets $ 538 $ 456

11 unchanged sentences

Depreciation and amortization expense relating to property and equipment during 2021, 2020 and 2019 was $ 205 million, $ 218 million and $ 204 million, respectively (including $ 105 million, $ 113 million and $ 109 million, respectively, of amortization expense relating to capitalized software).

At December 31, 2020, the Company had payables related to property and equipment included in accounts payable and other current liabilities and in other non-current liabilities of $ 10 million and $ 3 million, respectively.

At December 31, 2019, the Company had payables related to property and equipment included in accounts payable and other current liabilities and in other non-current liabilities of $16 million and $12 million, respectively.

At December 31, 2018, the Company had payables related to property and equipment included in accounts payable and other current liabilities of $ 15 million.

At December 31, 2021, we had payables related to property and equipment included in accounts payable and other current liabilities and in other non-current liabilities o f $ 20 million and $ 2 million, resp ectively.

At December 31, 2020, we had payables related to property and equipment included in accounts payable and other current liabilities and in other non-current liabilities of $ 10 million and $ 3 million, respectively.

Accounts Payable and Other Current Liabilities

4 unchanged sentences

Accrued sales and use taxes 313 215

Public liability and property damage insurance liabilities – current 162 178

Accrued advertising and marketing 218 122

Accrued payroll and related 193 117

Deferred lease revenues – current 185 70

Public liability and property damage insurance liabilities – current 159 162

Other 418 440

3 unchanged sentences

Date As of December 31,

5½% Senior Notes April 2023 — 200

6⅜% Senior Notes April 2024 350 350

4⅛% euro-denominated Senior Notes November 2024 366 336

5¼% Senior Notes March 2025 375 375

4½% euro-denominated Senior Notes May 2025 305 280

10½% Senior Secured Notes May 2025 487 —

4¾% euro-denominated Senior Notes January 2026 428 393

5¾% Senior Notes July 2027 724 400

6.375 % Senior Notes

April 2024 $ — $ 350

4.125 % euro-denominated Senior Notes

November 2024 341 366

5.250 % Senior Notes

March 2025 — 375

4.500 % euro-denominated Senior Notes

May 2025 284 305

10.500 % Senior Secured Notes

May 2025 — 487

4.750 % euro-denominated Senior Notes

January 2026 398 428

5.750 % Senior Notes

July 2027 728 724

4.750 % Senior Notes

April 2028 500 —

5.375 % Senior Notes

March 2029 600 —

Floating Rate Term Loan (a)

4 unchanged sentences

Long-term debt $ 3,990 $ 4,191

(a) The floating rate term loan is part of the Company’s senior revolving credit facility, which is secured by pledges of capital stock of certain subsidiaries of the Company, and liens on substantially all of the Company’s intellectual property and certain other real and personal property.

(a) The floating rate term loan is part of our senior revolving credit facility, which is secured by pledges of capital stock of certain our subsidiaries, and liens on substantially all of our intellectual property and certain other real and personal property.

(b) Primarily includes finance leases which are secured by liens on the related assets.

Floating Rate Term Loan due 2027.

In February 2020, the Company amended its Floating Rate Term Loan and extended its maturity term to 2027.

The Company increased the outstanding borrowing principal amount of the Floating Rate Term Loan to $ 1.2 billion and on April 1, 2020 used the additional loan amount to redeem $100 million of its outstanding 5½% Senior Notes due 2023.

In February 2020, we amended our Floating Rate Term Loan and extended its maturity term to 2027.

We increased the outstanding borrowing principal amount of the Floating Rate Term Loan to $ 1.2 billion and on April 1, 2020 used the additional loan amount to redeem $ 100 million of our outstanding 5.500 % Senior Notes due 2023.

As of December 31, 2021, the loan bears interest at one-month LIBOR plus 1.75 %, for an aggregate rate of 1.86 %;

however, the Company entered into an interest rate swap to hedge $ 700 million of its interest rate exposure related to the floating rate term loan at an aggregate rate of 4.58 %.

5½% Senior Notes due 2023.

In April 2013, the Company completed an offering of $ 500 million of 5½% Senior Notes due April 2023.

The notes were issued at par, with interest payable semi-annually.

In November 2014, the Company issued $ 175 million of additional 5½% Senior Notes due 2023 at 99.625 % of their face value, with interest payable semi-annually.

The Company had the right to redeem these notes in whole or in part on or after April 1, 2018 at specified redemption prices plus accrued interest.

The Company used the proceeds from the issuance to partially fund the acquisition of its Budget licensee for Southern California and Las Vegas.

During 2020 and 2019, the Company redeemed $ 200 million principal amount of these notes for $ 202 million and $ 475 million principal amount of these notes for $ 483 million, respectively, plus accrued interest.

however, we entered into an interest rate swap to hedge $ 700 million of our interest rate exposure related to the floating rate term loan at an aggregate rate of 4.75 %.

6.375 % Senior Notes due 2024 .

In March 2016, the Company issued $ 350 million of 6⅜% Senior Notes due 2024 at par, with interest payable semi-annually.

The Company has the right to redeem these notes in whole or in part at any time on or after April 1, 2019 at specified redemption prices plus accrued interest.

In May 2016, the Company used the net proceeds from the offering to redeem $ 300 million principal amount of its previous 4⅞% Senior Notes and for general corporate purposes.

In March 2016, we issued $ 350 million of 6.375 % Senior Notes due 2024

at par, with interest payable semi-annually.

We have the right to redeem these notes in whole or in part at any time on or after April 1, 2019 at specified redemption prices plus accrued interest.

In May 2016, we used the net proceeds from the offering to redeem $ 300 million principal amount of our previous 4.875 % Senior Notes and for general corporate purposes.

4.125 % euro-denominated Senior Notes due 2024.

In September 2016, the Company issued € 300 million of 4⅛% euro-denominated Senior Notes due 2024 at par, with interest payable semi-annually.

The Company has the right to redeem these notes in whole or in part at any time on or after November 15, 2019 at specified redemption prices plus accrued interest.

In October 2016, the Company used the net proceeds from the offering primarily to redeem € 275 million of its outstanding 6% euro-denominated Senior Notes due 2021.

In September 2016, we issued € 300 million of 4.125 % euro-denominated Senior Notes due 2024 at par, with interest payable semi-annually.

We have the right to redeem these notes in whole or in part at any time on or after November 15, 2019 at specified redemption prices plus accrued interest.

In October 2016, we used the net proceeds from the offering primarily to redeem € 275 million of our outstanding 6 % euro-denominated Senior Notes due 2021.

5.250 % Senior Notes due 2025.

In March 2015, the Company issued $ 375 million of 5¼% Senior Notes due 2025 at par, with interest payable semi-annually.

The Company has the right to redeem these notes in whole or in part at any time on or after March 15, 2020 at specified redemption prices plus accrued interest.

In April 2015, the Company used net proceeds from the offering to redeem the remaining $ 223 million principal amount of its 9¾% Senior Notes and to partially fund the acquisition of Maggiore.

In March 2015, we issued $ 375 million of 5.250 % Senior Notes due 2025 at par, with interest payable semi-annually.

We have the right to redeem these notes in whole or in part at any time on or after March 15, 2020 at specified redemption prices plus accrued interest.

In April 2015, we used net proceeds from the offering to redeem the remaining $ 223 million principal amount of our 9.750 % Senior Notes and to partially fund the acquisition of Maggiore.

In September 2021, we redeemed our 5.250 % Senior Notes due March 2025 with an aggregate outstanding balance of $ 235 million for $ 239 million plus accrued interest.

4.500 % euro-denominated Senior Notes due 2025.

In March 2017, the Company issued € 250 million of 4½% euro-denominated Senior Notes due 2025, at par, with interest payable semi-annually.

The Company has the right to redeem these notes in whole or in part on or after May 15, 2020 at specified redemption prices plus accrued interest.

In April 2017, the Company used the net proceeds from the offering to redeem its outstanding € 175 million principal amount of 6% euro-denominated Senior Notes due 2021 for € 180 million plus accrued interest.

In June 2017, the Company used the remaining proceeds to redeem a portion of its Floating Rate Senior Notes due 2017.

In March 2017, we issued € 250 million of 4.500 % euro-denominated Senior Notes due 2025, at par, with interest payable semi-annually.

We have the right to redeem these notes in whole or in part on or after May 15, 2020 at specified redemption prices plus accrued interest.

In April 2017, we used the net proceeds from the offering to redeem our outstanding € 175 million principal amount of 6.000 % euro-denominated Senior Notes due 2021 for € 180 million plus accrued interest.

In June 2017, we used the remaining proceeds to redeem a portion of our Floating Rate Senior Notes due 2017.

4.750 % euro-denominated Senior Notes due 2026.

In October 2018, the Company issued € 350 million of 4¾% euro-denominated Senior Notes due 2026, at par, with interest payable semi-annually.

The Company has the right to redeem these notes in whole or in part on or after September 30, 2021 at specified redemption prices plus accrued interest.

In October 2018, the Company used the net proceeds from the offering to redeem its 5⅛% Senior Notes due June 2022 for $ 410 million plus accrued interest.

In October 2018, we issued € 350 million of 4.750 % euro-denominated Senior Notes due 2026, at par, with interest payable semi-annually.

We have the right to redeem these notes in whole or in part on or after September 30, 2021 at specified redemption prices plus accrued interest.

In October 2018, we used the net proceeds from the offering to redeem our 5.125 % Senior Notes due June 2022 for $ 410 million plus accrued interest.

5.750 % Senior Notes due 2027.

In July 2019, the Company issued $ 400 million of 5¾% Senior Notes due July 2027, at par, with interest payable semi-annually.

The Company used the net proceeds from the offering to redeem $ 400 million principal amount of its 5½% Senior Notes due April 2023.

In August 2020, the Company issued $ 350 million of additional 5¾% Senior Notes due July 2027, at 92% of face value, under the indenture governing its existing 5¾% Senior Notes.

The Company used the proceeds from this offering to redeem the outstanding $ 100 million in aggregate principal amount of its 5½% Senior Notes due 2023, with the remainder being used for general corporate purposes.

In July 2019, we issued $ 400 million of 5.750 % Senior Notes due July 2027, at par, with interest payable semi-annually.

We used the net proceeds from the offering to redeem $ 400 million principal amount of our 5.500 % Senior Notes due April 2023.

In August 2020, we issued $ 350 million of additional 5.750 % Senior Notes due July 2027, at 92 % of face value, under the indenture governing our existing 5.750 % Senior Notes.

We used the proceeds from this offering to redeem the outstanding $ 100 million in aggregate principal amount of our 5.500 % Senior Notes due 2023, with the remainder being used for general corporate purposes.

10.500 % Senior Secured Notes due 2025.

In May 2020, the Company issued $ 500 million of 10½% Senior Secured Notes due May 2025, at 97% of face value, with interest payable semi-annually.

The Company has the right to redeem these notes in whole or in part prior to May 15, 2022 at a redemption price equal to 100% of principal amount plus accrued interest and a make-whole premium.

The Company has the right to redeem these notes in whole or in part on or after May 15, 2022 at specified redemption prices plus accrued interest.

The notes are guaranteed on a senior unsecured basis by the Company and on a senior secured basis by certain of the Company’s subsidiaries.

The Company used the proceeds from this offering for general corporate purposes.

The 5½% Senior Notes, 6⅜% Senior Notes, the 5¼% Senior Notes and the 5¾% Senior Notes are senior unsecured obligations of the Company’s Avis Budget Car Rental, LLC (“ABCR”) subsidiary, are guaranteed by the Company and certain of its domestic subsidiaries and rank equally in right of payment with all of the Company’s existing and future senior unsecured indebtedness.

The 4⅛% euro-denominated Senior Notes, 4½% euro-denominated Senior Notes and 4¾% euro-denominated Senior Notes are unsecured obligations of the Company’s Avis Budget Finance plc subsidiary, are guaranteed on a senior basis by the Company and certain of its domestic subsidiaries and rank equally with all of the Company’s existing senior unsecured debt.

In connection with the debt amendments and repayments for the years ended December 31, 2020, 2019 and 2018, the Company recorded $ 9 million, $ 12 million and $ 19 million in early extinguishment of debt costs, respectively.

In May 2020, we issued $ 500 million of 10.500 % Senior Secured Notes due May 2025, at 97 % of face value, with interest payable semi-annually.

We have the right to redeem these notes in whole or in part prior to May 15, 2022 at a redemption price equal to 100 % of principal amount plus accrued interest and a make-whole premium.

We have the right to redeem these notes in whole or in part on or after May 15, 2022 at specified redemption prices plus accrued interest.

The notes are guaranteed on a senior unsecured basis by us and on a senior secured basis by certain of our subsidiaries.

We used the proceeds from this offering for general corporate purposes.

4.750 % Senior Notes due 2028.

In March 2021, we issued $ 500 million of 4.750 % Senior Notes du e April 2 028, at par, with interest paid semiannually.

We have the right to redeem these notes in whole or in part at any time on or after April 1, 2024 at specified redemption prices plus accrued interest.

Net proceeds, together with cash on hand, were used to redeem all of the outstanding 6.375 % Senior Notes due 2024 for $ 356 million plus accrued interest and a portion of our outstanding 5.250 % Senior Notes due 2025 for $ 142 million plus accrued interest.

5.375 % Senior Notes due 2029.

In March 2021, we issued $ 600 million of 5.375 % Senior Notes due March 2029, at par, with interest paid semiannually.

We have the right to redeem these notes in whole or in part at

any time on or after March 1, 2024 at specified redemption prices plus accrued interest.

Net proceeds, together with cash on hand, were used to redeem all of the outstanding 10.500 % Senior Secured Notes due 2025 for $ 599 million plus accrued interest.

In connection with the debt amendments and repayments for the years ended December 31, 2021, 2020 and 2019, we record ed $ 136 million , $ 9 million and $ 12 million in early extinguishment of debt costs, respectively.

The 5.750 % Senior Notes, the 4.750 % Senior Notes and the 5.375 % Senior Notes are senior unsecured obligations of our Avis Budget Car Rental, LLC (“ABCR”) subsidiary, are guaranteed by us and certain of our domestic subsidiaries and rank equally in right of payment with all of our existing and future senior unsecured indebtedness.

The 4.125 % euro-denominated Senior Notes, 4.500 % euro-denominated Senior Notes and 4.750 % euro-denominated Senior Notes are unsecured obligations of our Avis Budget Finance plc subsidiary, are guaranteed on a senior basis by us and certain of our domestic subsidiaries and rank equally with all of our existing senior unsecured debt.

Debt Maturities

The following table provides contractual maturities of the Company’s corporate debt at December 31, 2020:

The following table provides contractual maturities of our corporate debt at December 31, 2021:

Thereafter 2,954

Committed Credit Facilities And Available Funding Arrangements

At December 31, 2020, the committed corporate credit facilities available to the Company and/or its subsidiaries were as follows:

At December 31, 2021, the committed corporate credit facilities available to us and/or our subsidiaries were as follows:

Total Capacity Outstanding Borrowings Letters of Credit Issued Available Capacity

1 unchanged sentence

$ 1,950 $ — $ 1,727 $ 223

(a) The senior revolving credit facility bears interest at one-month LIBOR plus 250 basis points and is part of the Company’s senior credit facility, which is secured by pledges of capital stock of certain subsidiaries of the Company, and liens on substantially all of the Company’s intellectual property and certain other real and personal property.

(a) The senior revolving credit facility bears interest at one-month LIBOR plus 175 basis points and is part of our senior credit facilities, which include the floating rate term loan and the senior revolving credit facility, and which are secured by pledges of capital stock of certain of our subsidiaries, and liens on substantially all of our intellectual property and certain other real and personal property.

In July 2021, we amended the credit agreement to increase the revolving credit facility to $ 1.95 billion and extend the maturity of the facility to 2026.

Debt Covenants

The agreements governing the Company’s indebtedness contain restrictive covenants, including restrictions on dividends paid to the Company by certain of its subsidiaries, the incurrence of additional indebtedness and/or liens by the Company and certain of its subsidiaries, acquisitions, mergers, liquidations, and sale and leaseback transactions.

The Company’s senior credit facility also contains a maximum leverage ratio requirement which has been amended to provide a holiday from such leverage covenant through June 30, 2021 (See Note 1 - Basis of Presentation).

As of December 31, 2020, the Company was in compliance with the financial covenants governing its indebtedness.

The agreements governing our indebtedness contain restrictive covenants, including restrictions on dividends paid to us by certain of our subsidiaries, the incurrence of additional indebtedness and/or liens by us and certain of our subsidiaries, acquisitions, mergers, liquidations, and sale and leaseback transactions.

Our senior credit facility also contains a maximum leverage ratio requirement.

As of December 31, 2021, we were in compliance with the financial covenants governing our indebtedness.

Debt under Vehicle Programs and Borrowing Arrangements

9 unchanged sentences

Total $ 11,390 $ 6,857

(a) Decreases reflect reduced borrowings resulting from reductions in the Company's global rental fleet.

(a) Increase reflects additional borrowings principally to fund increases in our global rental fleet.

(b) Deferred financing fees related to Debt due to Avis Budget Rental Car Funding as of December 31, 2021 and 2020 were $ 41 million and $ 36 million, respectively.

1 unchanged sentence

Avis Budget Rental Car Funding, an unconsolidated bankruptcy remote qualifying special purpose limited liability company, issues privately placed notes to investors as well as to banks and bank-sponsored conduit entities.

Avis Budget Rental Car Funding uses the proceeds from its note issuances to make loans to a wholly-owned subsidiary of the Company, AESOP Leasing LP (“AESOP Leasing”), on a continuing basis.

AESOP Leasing is required to use the proceeds of such loans to acquire or finance the acquisition of vehicles used in the Company’s rental car operations.

By issuing debt through the Avis Budget Rental Car Funding program, the Company pays a lower rate of interest than if it had issued debt directly to third parties.

Avis Budget Rental Car Funding is not consolidated, as the Company is not the “primary beneficiary” of Avis Budget Rental Car Funding.

The Company determined that it is not the primary beneficiary because the Company does not have the obligation to absorb the potential losses or receive the benefits of Avis Budget Rental Car Funding’s activities since the Company’s only significant source of variability in the earnings, losses or cash flows of Avis Budget Rental Car Funding is exposure to its own creditworthiness, due to its loan from Avis Budget Rental Car Funding.

Because Avis Budget Rental Car Funding is not consolidated, AESOP Leasing’s loan obligations to Avis Budget Rental Car Funding are reflected as related party debt on the Company’s Consolidated Balance Sheets.

The Company also has an asset within Assets under vehicle programs on its Consolidated Balance Sheets which represents securities issued to the Company by Avis Budget Rental Car Funding.

AESOP Leasing is consolidated, as the Company is the “primary beneficiary” of AESOP Leasing;

as a result, the vehicles purchased by AESOP Leasing remain on the Company’s Consolidated Balance Sheets.

The Company determined it is the primary beneficiary of AESOP Leasing, as it has the ability to direct its activities, an obligation to absorb a majority of its expected losses and the right to receive the benefits of AESOP Leasing’s activities.

AESOP Leasing’s vehicles and related assets, which as of December 31, 2020, approximate $ 6.4 billion and some of which are subject to manufacturer repurchase and guaranteed depreciation agreements, collateralize the debt issued by Avis Budget Rental Car Funding.

The assets and liabilities of AESOP Leasing are presented on the Company’s Consolidated Balance Sheets within Assets under vehicle programs and Liabilities under vehicle programs, respectively.

Avis Budget Rental Car Funding uses the proceeds from its note issuances to make loans to our wholly-owned subsidiary, AESOP Leasing LP (“AESOP Leasing”), on a continuing basis.

AESOP Leasing is required to use the proceeds of such loans to acquire or finance the acquisition of vehicles used in our rental car operations.

By issuing debt through the Avis Budget Rental Car Funding program, we pay a lower rate of interest than if we had issued debt directly to third parties.

Avis Budget Rental Car Funding is not consolidated, as we are not the “primary beneficiary” of Avis Budget Rental Car Funding.

We determined that we are not the primary beneficiary because we do not have the obligation to absorb the potential losses or receive the benefits of Avis Budget Rental Car Funding’s activities since our only significant source of variability in the earnings, losses or cash flows of Avis Budget Rental Car Funding is exposure to our own creditworthiness, due to our loan from Avis Budget Rental Car Funding.

Because Avis Budget Rental Car Funding is not consolidated, AESOP Leasing’s loan obligations to Avis Budget Rental Car Funding are reflected as related party debt on our Consolidated Balance Sheets.

We also have an asset within Assets under vehicle programs on our Consolidated Balance Sheets which represents securities issued to us by Avis Budget Rental Car Funding.

AESOP Leasing is consolidated, as we are the “primary beneficiary” of AESOP Leasing;

as a result, the vehicles purchased by AESOP Leasing remain on our Consolidated Balance Sheets.

We determined we are the primary beneficiary of AESOP Leasing, as we have the ability to direct its activities, an obligation to absorb a majority of its expected losses and the right to receive the benefits of AESOP Leasing’s activities.

AESOP Leasing’s vehicles and related assets, which as of December 31, 2021, appro ximate $ 10.5 billion an d some of which are subject to manufacturer repurchase and guaranteed depreciation agreements, collateralize the debt issued by Avis Budget Rental Car Funding.

The assets and liabilities of AESOP Leasing are presented on our Consolidated Balance Sheets within Assets under vehicle programs and Liabilities under vehicle programs, respectively.

The assets of AESOP Leasing, included within assets under vehicle programs (excluding the investment in Avis Budget Rental Car Funding (AESOP) LLC—related party) are restricted.

Such assets may be used only to repay the respective AESOP Leasing liabilities, included within Liabilities under vehicle programs, and to purchase new vehicles, although if certain collateral coverage requirements are met, AESOP Leasing may pay dividends from excess cash.

The creditors of AESOP Leasing and Avis Budget Rental Car Funding have no recourse to the general credit of the Company.

The Company periodically provides Avis Budget Rental Car Funding with non-contractually required support, in the form of equity and loans, to serve as additional collateral for the debt issued by Avis Budget Rental Car Funding.

The business activities of Avis Budget Rental Car Funding are limited primarily to issuing indebtedness and using the proceeds thereof to make loans to AESOP Leasing for the purpose of acquiring or financing the acquisition of vehicles to be leased to the Company’s rental car subsidiaries and pledging its assets to

secure the indebtedness.

Because Avis Budget Rental Car Funding is not consolidated by the Company, its results of operations and cash flows are not reflected within the Company’s financial statements.

During February 2019, April 2019 and August 2019, Avis Budget Rental Car Funding issued approximately $ 600 million, $ 650 million and $ 650 million, respectively, in asset-backed notes with an expected final payment date of March 2022, September 2024 and March 2025, respectively.

During January 2020 and August 2020, Avis Budget Rental Car Funding issued approximately $ 700 million in asset-backed notes with an expected final payment date of August 2025 and issued approximately $ 650 million in asset-backed notes with an expected final payment date of February 2026, respectively.

The Company used the proceeds from these borrowings to fund the repayment of maturing vehicle-backed debt and the acquisition of rental cars in the United States.

Borrowings under the Avis Budget Rental Car Funding program primarily represent fixed rate notes and had a weighted average interest rate of 3.17 % and 3.16 % as of December 31, 2020 and 2019 respectively.

Debt borrowings .

The Company finances the acquisition of vehicles used in its Canadian rental operations through a consolidated, bankruptcy remote special-purpose entity, which issues privately placed notes to investors and bank-sponsored conduits.

The Company finances the acquisition of fleet for its truck rental operations in the United States through a combination of debt facilities and leases.

The creditors of AESOP Leasing and Avis Budget Rental Car Funding have no recourse to our general credit.

We periodically provide Avis Budget Rental Car Funding with non-contractually required support, in the form of equity and loans, to serve as additional collateral for the debt issued by Avis Budget Rental Car Funding.

The business activities of Avis Budget Rental Car Funding are limited primarily to issuing indebtedness and using the proceeds thereof to make loans to AESOP Leasing for the purpose of acquiring or financing the acquisition of vehicles to be leased to our rental car subsidiaries and pledging its assets to secure the indebtedness.

Because Avis Budget Rental Car Funding is not consolidated by us, its results of operations

and cash flows are not reflected within our financial statements.

In January 2020 and August 2020, AESOP issued approximately $ 700 million in asset-backed notes with an expected final payment date of August 2025 and issued approximately $ 650 million in asset-backed notes with an expected final payment date of February 2026, respectively.

In May 2021, AESOP issued $ 800 million of asset-backed notes with an expected final payment date of August 2026.

In June 2021, AESOP issued $ 96 million, $ 105 million and $ 103 million of asset-backed notes with expected final payment dates of March 2024, September 2024 and August 2025, respectively.

In November 2021, AESOP issued $ 650 million of asset-backed notes with an expected final payment date of February 2027.

We used the proceeds from these borrowings to fund the repayment of maturing vehicle-backed debt and the acquisition of rental cars in the United States.

Borrowings under the Avis Budget Rental Car Funding program primarily represent fixed rate notes and had a weighted average interest rate o f 2.66 % and 3.17 % as of December 31, 2021 and 2020 respectively.

Debt borrowings .We finance the acquisition of vehicles used in our Canadian rental operations through a consolidated, bankruptcy remote special-purpose entity, which issues privately placed notes to investors and bank-sponsored conduits.

We finance the acquisition of fleet for our truck rental operations in the United States through a combination of debt facilities and leases.

These debt borrowings represent a mix of fixed and floating rate debt and had a weighted average interest rate of 2.64 % and 2.98 % as of December 31, 2021 and 2020 respectively.

1 unchanged sentence

Debt borrowings .

In 2013, the Company entered into a three-year, € 500 million European rental fleet securitization program, which is used to finance fleet purchases for certain of the Company’s European operations.

Since 2013, the Company increased its capacity to € 1.7 billion, and extended the securitization maturity to 2022.

The Company finances the acquisition of vehicles used in its International rental car operations through this and other consolidated, bankruptcy remote special-purpose entities, which issue privately placed notes to banks and bank-sponsored conduits.

In 2013, we entered into a three-year , € 500 million European rental fleet securitization program, which is used to finance fleet purchases for certain of our European operations.

Since 2013, we increased its capacity to € 1.7 billion, and extended the securitization maturity to 2024.

We finance the acquisition of vehicles used in our International rental car operations through this and other consolidated, bankruptcy remote special-purpose entities, which issue privately placed notes to banks and bank-sponsored conduits.

The International borrowings primarily represent floating rate notes and had a weighted average interest rate of 1.66 % and 2.17 % as of December 31, 2021 and 2020, respectively.

Finance leases.

The Company obtained a portion of its International vehicles under finance lease arrangements.

For the years ended December 31, 2020 and 2019, the weighted average interest rate on these borrowings was 1.16 % and 1.25 % respectively.

We obtain a portion of our International vehicles under finance lease arrangements.

For the years ended December 31, 2021 and 2020, the weighted average interest rate on these borrowing s was 1.25 % and 1.16 % respectively.

All finance leases are on a fixed repayment basis and interest rates are fixed at the contract date.

Debt Maturities

The following table provides the contractual maturities of the Company’s debt under vehicle programs, including related party debt due to Avis Budget Rental Car Funding, at December 31, 2020:

The following table provides the contractual maturities of our debt under vehicle programs, including related party debt due to Avis Budget Rental Car Funding, at December 31, 2021:

Debt under Vehicle Programs (a)

1 unchanged sentence

(a) Vehicle-backed debt primarily represents asset-backed securities.

(b) Includes $0.3 billion of bank and bank-sponsored facilities.

(b) Includ es $ 0.7 billion of bank and bank-sponsored facilities.

1 unchanged sentence

Committed Credit Facilities And Available Funding Arrangements

The following table presents available funding under the Company’s debt arrangements related to its vehicle programs, including related party debt due to Avis Budget Rental Car Funding, at December 31, 2020:

The following table presents available funding under our debt arrangements related to our vehicle programs, including related party debt due to Avis Budget Rental Car Funding, at December 31, 2021:

Total Capacity (a)

Borrowings (b)

Outstanding Borrowings (b)

Available Capacity

12 unchanged sentences

Debt Covenants

The agreements under the Company’s vehicle-backed funding programs contain restrictive covenants, including restrictions on dividends paid to the Company by certain of its subsidiaries and restrictions on indebtedness, mergers, liens, liquidations and sale and leaseback transactions, and in some cases also require compliance with certain financial requirements.

As of December 31, 2020, the Company is not aware of any instances of non-compliance with any of the financial or restrictive covenants contained in the debt agreements under its vehicle-backed funding programs.

The agreements under our vehicle-backed funding programs contain restrictive covenants, including restrictions on dividends paid to us by certain of our subsidiaries and restrictions on indebtedness, mergers, liens, liquidations and sale and leaseback transactions, and in some cases also require compliance with certain financial requirements.

As of December 31, 2021, we are not aware of any instances of non-compliance with any of the financial or restrictive covenants contained in the debt agreements under our vehicle-backed funding programs.

Commitments and Contingencies

Contingencies

In 2006, the Company completed the spin-offs of its Realogy and Wyndham subsidiaries.

The Company does not believe that the impact of any resolution of pre-existing contingent liabilities in connection with the spin-offs should result in a material liability to the Company in relation to its consolidated financial position or liquidity, as Realogy and Wyndham each have agreed to assume responsibility for these liabilities.

The Company is also named in litigation that is primarily related to the businesses of its former subsidiaries, including Realogy and Wyndham.

The Company is entitled to indemnification from such entities for any liability resulting from such litigation.

In February 2017, following a state court trial in Georgia, a jury found the Company liable for damages in cases brought by plaintiffs who were injured in a vehicle accident allegedly caused by an employee of an independent contractor of the Company who was acting outside of the scope of employment.

In fourth quarter 2019, the Company appealed both verdicts resulting in a reversal of the opinions rendered.

The Georgia Supreme Court granted the plaintiffs’ application to review the state appellate court’s reversal of the judgement entered at the trial court.

The Georgia Supreme Court heard oral arguments in December 2020.

The Company has recognized a liability related to these cases, net of recoverable insurance proceeds, of approximately $ 12 million.

The Company is involved in claims, legal proceedings, including class actions, and governmental inquiries that are incidental to its vehicle rental and car sharing operations, including, among others, contract and licensee disputes, competition matters, employment and wage-and-hour claims, insurance and liability claims, intellectual property claims, business practice disputes and other regulatory, environmental, commercial and tax matters.

Litigation is inherently unpredictable and, although the Company believes that its accruals are adequate and/or that it has valid defenses in these matters, unfavorable resolutions could occur.

The Company estimates that the potential exposure resulting from adverse outcomes of legal proceedings in which it is reasonably possible that a loss may be incurred could, in the aggregate, be up to approximately $ 35 million in excess of amounts accrued as of December 31, 2020;

however, the Company does not believe that the impact should result in a material liability to the Company in relation to its consolidated financial condition or results of operations.

In 2006, we completed the spin-offs of our Realogy and Wyndham subsidiaries.

We do not believe that the impact of any resolution of pre-existing contingent liabilities in connection with the spin-offs should result in a material liability to us in relation to our consolidated financial position or liquidity, as Realogy and Wyndham each have agreed to assume responsibility for these liabilities.

We are also named in litigation that is primarily related to the businesses of our former subsidiaries, including Realogy and Wyndham.

We are entitled to indemnification from such entities for any liability resulting from such litigation.

In February 2017, following state court trials in Georgia, we were found liable for damages in two cases brought by plaintiffs who were injured in a vehicle accident allegedly caused by an employee of our independent contractor who was acting outside of the scope of employment.

In fourth quarter 2019, we appealed both verdicts resulting in a reversal of the opinions rendered.

The Georgia Supreme Court granted the plaintiffs’ application to review the appellate court’s reversal of the judgments entered at the trial court.

The Georgia Supreme Court heard oral arguments in December 2020, and on May 3, 2021 issued a decision affirming the appellate court’s judgements.

Following the issuance of this decision, plaintiffs filed motions for reconsideration, which were denied in June 2021.

We have reversed a previously recognized liability related to these cases, net of recoverable insurance proceeds, of approximately $ 12 million within operating expenses.

In November 2011, Jose Mendez v.

Avis Budget Group Inc., et al.

was filed in U.S.

District Court for the District of New Jersey.

The plaintiff seeks to represent a purported nationwide class and two sub-classes of certain renters of vehicles from our Avis and Budget subsidiaries from April 2007 through December 2015.

The plaintiff seeks damages in connection with claims relating to our electronic toll service, including that administrative fees and toll charges were not properly disclosed to customers and/or were excessive.

Plaintiff’s motion for class certification was approved by the Court in November 2017.

The parties are currently engaged in settlement discussions.

We have been named as a defendant in other purported consumer class action law suits, including a class action filed against us in Florida seeking damages in connection with a breach of contract claim and two purported class action suits filed against us in New Jersey, one related to fines and fees charged to car renters by us for violations incurred during the course of

their rental and another related to ancillary charges at our Payless subsidiary.

In the Florida lawsuit, a motion for preliminary approval of a proposed settlement has been filed with the Court.

We are currently involved, and in the future may be involved, in claims and/or legal proceedings, including class actions, and governmental inquiries that are incidental to our vehicle rental and car sharing operations, including, among others, contract and licensee disputes, competition matters, employment and wage-and-hour claims, insurance and liability claims, intellectual property claims, business practice disputes and other regulatory, environmental, commercial and tax matters.

Litigation is inherently unpredictable and, although we believe that our accruals are adequate and/or that we have valid defenses in these matters, unfavorable resolutions could occur.

We estimate that the potential exposure resulting from adverse outcomes of current legal proceedings in which it is reasonably possible that a loss may be incurred could, in the aggregate, be up to approximately $ 35 million in excess of amounts accrued as of December 31, 2021.

We do not believe that the impact should result in a material liability to us in relation to our consolidated financial condition or results of operations.

Commitments to Purchase Vehicles

The Company maintains agreements with vehicle manufacturers under which the Company has agreed to purchase approximately $ 8.7 billion of vehicles from manufacturers over the next 12 months financed primarily through the issuance of vehicle-backed debt and cash received upon the disposition of vehicles.

We maintain agreements with vehicle manufacturers under which we have agreed to purchase approximately $ 5.9 billion of vehicles from manufacturers over the next 12 months, a $ 2.8 billion decrease compared to December 31, 2020, financed primarily through the issuance of vehicle-backed debt and cash received upon the disposition of vehicles.

Certain of these commitments are subject to the vehicle manufacturers satisfying their obligations under their respective repurchase and guaranteed depreciation agreements.

Other Purchase Commitments

In the normal course of business, the Company makes various commitments to purchase other goods or services from specific suppliers, including those related to marketing, advertising, computer services and capital expenditures.

As of December 31, 2020, the Company had approximately $ 177 million of purchase obligations, which extend through 2026.

In the normal course of business, we make various commitments to purchase other goods or services from specific suppliers, including those related to marketing, advertising, computer services and capital expenditures.

As of December 31, 2021, we had approximately $ 149 million of purchase obligations, which extend through 2026.

Concentrations

Concentrations of credit risk at December 31, 2020, include (i) risks related to the Company’s repurchase and guaranteed depreciation agreements with domestic and foreign car manufacturers, including Ford, Fiat Chrysler and General Motors, and primarily with respect to receivables for program cars that have been disposed but for which the Company has not yet received payment from the manufacturers and (ii) risks related to Realogy and Wyndham, including receivables of $ 25 million and $ 15 million, respectively, related to certain contingent, income tax and other corporate liabilities assumed by Realogy and Wyndham in connection with their disposition.

Concentrations of credit risk at December 31, 2021, include (i) risks related to our repurchase and guaranteed depreciation agreements with domestic and foreign car manufacturers, including Ford, Fiat Chrysler and General Motors, and primarily with respect to receivables for program cars that have been disposed, but for which we have not yet received payment from the manufacturers and (ii) risks related to Realogy and Wyndham, including receivable s of $ 26 million and $ 15 million, respectively, related to certain contingent, income tax and other corporate liabilities assumed by Realogy and Wyndham in connection with their disposition.

Asset Retirement Obligations

The Company maintains a liability for asset retirement obligations.

We maintain a liability for asset retirement obligations.

An asset retirement obligation is a legal obligation to perform certain activities in connection with the retirement, disposal or abandonment of assets.

The Company’s asset retirement obligations, which are measured at discounted fair values, are primarily related to the removal of underground gasoline storage tanks at its rental facilities.

Our asset retirement obligations, which are measured at discounted fair values, are primarily related to the removal of underground gasoline storage tanks at our rental facilities.

The liability accrued for asset retirement obligations was $ 28 million and $ 30 million at December 31, 2021 and 2020, respectively.

Standard Guarantees/Indemnifications

In the ordinary course of business, the Company enters into numerous agreements that contain standard guarantees and indemnities whereby the Company agrees to indemnify another party, among other things, for performance under contracts and any breaches of representations and warranties thereunder.

In the ordinary course of business, we enter into numerous agreements that contain standard guarantees and indemnities whereby we agree to indemnify another party, among other things, for performance under contracts and any breaches of representations and warranties thereunder.

In addition, many of these parties are also indemnified against any third-party claim resulting from the transaction that is contemplated in the underlying agreement.

Such guarantees or indemnifications are granted under various agreements, including those governing (i) purchases, sales or outsourcing of assets, businesses or activities, (ii) leases of real estate, (iii) licensing of trademarks, (iv) access to credit facilities and use of derivatives and (v) issuances of debt or equity securities.

The guarantees or indemnifications issued are for the benefit of the (i) buyers in sale agreements and sellers in purchase agreements, (ii) landlords in lease contracts, (iii) licensees under licensing agreements, (iv) financial institutions in credit facility arrangements and derivative contracts and (v) underwriters and placement agents in debt or equity security issuances.

derivative contracts and (v) underwriters and placement agents in debt or equity security issuances.

While some of these guarantees extend only for the duration of the underlying agreement, many may survive the expiration of the term of the agreement or extend into perpetuity (unless subject to a legal statute of limitations).

There are no specific limitations on the maximum potential amount of future payments that the Company could be required to make under these guarantees, nor is the Company able to develop an estimate of the maximum potential amount of future payments to be made under these guarantees as the triggering events are not subject to predictability.

With respect to certain of the aforementioned guarantees, such as indemnifications provided to landlords against third-party claims for the use of real estate property leased by the Company, the Company maintains insurance coverage that mitigates its potential exposure.

There are no specific limitations on the maximum potential amount of future payments that we could be required to make under these guarantees, nor are we able to develop an estimate of the maximum potential amount of future payments to be made under these guarantees as the triggering events are not subject to predictability.

With respect to certain of the aforementioned guarantees, such as indemnifications provided to landlords against third-party claims for the use of real estate property leased by us, we maintains insurance coverage that mitigates our potential exposure.

Stockholders’ Equity

Cash Dividend Payments

During 2020, 2019 and 2018, the Company did not declare or pay any cash dividends.

The Company’s ability to pay dividends to holders of its common stock is limited by the Company’s senior credit facility, the indentures governing its senior notes and its vehicle financing programs.

During 2021, 2020 and 2019, we did not declare or pay any cash dividends.

Our ability to pay dividends to holders of our common stock is limited by our senior credit facility, the indentures governing our senior notes and our vehicle financing programs.

Share Repurchases

The Company’s Board of Directors has authorized the repurchase of up to approximately $ 1.8 billion of its common stock under a plan originally approved in 2013 and subsequently expanded, most recently in August 2019.

During 2020, 2019 and 2018, the Company repurchased approximately 13 million shares of common stock at a cost of approximately $ 375 million under the program.

Our Board of Directors has authorized the repurchase of up to approximately $ 4.1 billion of our common stock under a plan originally approved in 2013 and subsequently expanded, most recently in November 2021.

During 2021, 2020 and 2019, we repurchased approximately 21.5 million shares of common stock at a cost of approximately $ 1.6 billion under the program.

As of December 31, 2021, approximately $ 959 million of authorization remained available to repurchase common stock under this plan.

In June 2019, as part of its share repurchase program, the Company entered into a structured repurchase agreement involving the use of capped call options for the purchase of its common stock.

The Company paid a fixed sum upon the execution of the agreement in exchange for the right to receive either a pre-determined amount of cash or stock.

The Company paid net premiums of $ 16 million to enter into this agreement, which was recorded as a reduction of additional paid in capital.

In June 2019, as part of our share repurchase program, we entered into a structured repurchase agreement involving the use of capped call options for the purchase of our common stock.

We paid a fixed sum upon the execution of the agreement in exchange for the right to receive either a pre-determined amount of cash or stock.

We paid net premiums of $ 16 million to enter into this agreement, which was recorded as a reduction of additional paid in capital.

In September 2019, the capped call options expired and all outstanding options settled for 0.6 million shares.

Share Issuances

On February 10, 2020, the Company announced it had appointed a new Chairman of the Board of Directors and in connection with this appointment, the new Chairman purchased an aggregate $ 15 million of unregistered shares of the Company’s common stock at a price per share equal to the closing price of the Company’s common stock on February 7, 2020.

The Company issued the common stock from treasury shares.

On February 10, 2020, we announced we had appointed a new Chairman of the Board of Directors and in connection with this appointment, the new Chairman purchased an aggregate $ 15 million of unregistered shares of our common stock at a price per share equal to the closing price of our common stock on February 7, 2020.

We issued the common stock from treasury shares.

Accumulated Other Comprehensive Income (Loss)

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Net Unrealized Gains (Losses) on Cash Flow Hedges (b)

Net Unrealized Gains (Losses) on Available-For-Sale Securities Minimum Pension Liability

Minimum Pension Liability

Adjustment (c)

6 unchanged sentences

Amounts reclassified from accumulated other comprehensive income (loss)

— ( 2 ) — 5 3

Net current-period other comprehensive income (loss)

1 unchanged sentence

Balance, December 31, 2019 9 ( 20 ) ( 146 ) ( 157 )

Cumulative effect of accounting change — 1 — — 1

Balance, January 1, 2019 ( 3 ) 3 — ( 132 ) ( 132 )

Other comprehensive income (loss) before reclassifications

1 unchanged sentence

Amounts reclassified from accumulated other comprehensive income (loss)

— ( 3 ) — 6 3

Net current-period other comprehensive income (loss)

4 unchanged sentences

Amounts reclassified from accumulated other comprehensive income (loss)

( 2 ) 8 — 6 12

Net current-period other comprehensive income (loss)

1 unchanged sentence

Balance, December 31, 2021 $ 16 $ ( 19 ) $ ( 130 ) $ ( 133 )

All components of accumulated other comprehensive income (loss) are net of tax, except currency translation adjustments, which exclude income taxes related to indefinite investments in foreign subsidiaries (see Note 9-Income Taxes for impacts of the Tax Act) and include a $ 14 million gain, net of tax, related to the Company’s hedge of its investment in euro-denominated foreign operations (See Note 19-Financial Instruments).

(a) For the year ended December 31, 2020, the amount reclassified from accumulated other comprehensive income (loss) into restructuring and other related charges.

All components of accumulated other comprehensive income (loss) are net of tax, except currency translation adjustments, which exclude income taxes related to indefinite investments in foreign subsidiaries (see Note 9-Income Taxes for impacts of the Tax Act) and include a $ 70 million gain, net of tax, related to our hedge of our investment in euro-denominated foreign operations (See Note 20-Financial Instruments).

(a) For the years ended December 31, 2021 and 2020, the amount reclassified from accumulated other comprehensive income (loss) into restructuring and other related charges.

(b) For the years ended December 31, 2021, 2020 and 2019, the amounts reclassified from accumulated other comprehensive income (loss) into corporate interest expense were $ 17 million ($ 12 million, net of tax), $ 9 million ($ 6 million, net of tax) and $ 4 million ($ 3 million, net of tax), respectively.

For the year ended December 31, 2020, the amounts reclassified from accumulated other comprehensive income (loss) into vehicle interest expense was $2 million ($2 million, net of tax).

For the year ended December 31, 2021 and 2020, the amounts reclassified from accumulated other comprehensive income (loss) into vehicle interest expense were $ 2 million ($ 2 million, net of tax) and $ 2 million ($ 2 million, net of tax).

(c) For the years ended December 31, 2021, 2020 and 2019, amounts reclassified from accumulated other comprehensive income (loss) into selling, general and administrative expenses were $ 9 million ($ 7 million, net of tax), $ 9 million ($ 6 million, net of tax) and $ 8 million ($ 6 million, net of tax), respectively.

Related Party Transactions

In August 2021, SRS Mobility Ventures, LLC acquired a 33 1/3% Class A Membership Interest in one of our subsidiaries at fair value of $ 37.5 million.

SRS Mobility Ventures, LLC is an affiliate of our largest shareholder, SRS Investment Management, LLC.

Stock-Based Compensation

The Company’s Amended and Restated Equity and Incentive Plan provides for the grant of options, stock appreciation rights, restricted stock, restricted stock units (“RSUs”) and other stock- or cash-based awards to employees, directors and other individuals who perform services for the Company and its subsidiaries.

Our Amended and Restated Equity and Incentive Plan provides for the grant of options, stock appreciation rights, restricted stock, restricted stock units (“RSUs”) and other stock- or cash-based awards to employees, directors and other individuals who perform services for us and our subsidiaries.

The maximum number of shares reserved for grant of awards under the plan is 22.5 million , with approximately 4.3 million shares available as of December 31, 2021.

The Company typically settles stock-based awards with treasury shares.

We typically settle stock-based awards with treasury shares.

Time-based awards generally vest ratably over a three-year period following the date of grant, and performance- or market-based awards generally vest three years following the date of grant based on the attainment of performance- or market-based goals, all of which are subject to a service condition.

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Market-based RSUs generally vest based on the level of total shareholder return or absolute stock price attainment.

In June 2020, the Company granted market-based RSUs that vest based on absolute stock price attainment.

In June 2020, we granted market-based RSUs that vest based on absolute stock price attainment.

The grant date fair value of this award is estimated using a Monte Carlo simulation model.

The weighted average assumptions used in the model are outlined in the table below.

During the years ended December 31, 2019 and 2018 the Company did not issue any stock unit awards containing a market condition.

During the years ended December 31, 2021 and 2019, we did not issue any stock unit awards containing a market condition.

Expected volatility of stock price 91 %

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(a) Reflects the maximum number of stock units assuming achievement of all performance-, market- and time-vesting criteria and does not include those for non-employee directors, which are discussed separately below.

The weighted-average fair value of time-based RSUs and performance-based RSUs granted in 2019 was $ 34.14 and $ 34.56 , respectively, and the weighted-average fair value of time-based RSUs and performance-based RSUs granted in 2018 was $ 48.41 and $ 48.52 , respectively.

The weighted-average fair value of time-based RSUs, and performance-based and market-based RSUs granted in 2020 was $ 23.14 and $ 21.06 , respectively, and the weighted-average fair value of time-based RSUs and performance-based RSUs granted in 2019 was $ 34.14 and $ 34.56 , respectively.

(b) The total fair value of RSUs vested during 2021, 2020 and 2019 was $ 17 million, $ 19 million and $ 18 million, respectively.

(c) Aggregate unrecognized compensation expense related to time-based RSUs and performance-based and market-based RSUs amounted to $ 17 million and will be recognized over a weighted average vesting period of 1.0 years.

Stock Options

There were no stock options outstanding as of December 31, 2020.

Stock options exercised during 2019 and 2018 had intrinsic values of $ 1 million and $ 8 million, respectively.

(c) Aggregate unrecognized compensation expense related to time-based RSUs and performance-based and market-based RSUs amounted t o $ 31 million a nd will be recognized over a weighted average vesting period o f 1.1 yea rs.

Non-employee Directors Deferred Compensation Plan

Prior to 2019, the Company granted stock awards on a quarterly basis to non-employee directors representing between 50 % and 100 % of a director’s annual compensation and such awards could be deferred under the Non-employee Directors Deferred Compensation Plan.

Beginning in 2019, the Company

grants stock awards on an annual basis to non-employee directors representing between 50% and 100% of a director’s annual compensation and such awards can be deferred under the Non-employee Directors Deferred Compensation Plan.

During 2020, 2019 and 2018, the Company granted 34,000 , 40,000 and 34,000 awards, respectively, to non-employee directors.

We grant stock awards on an annual basis to non-employee directors representing between 50 % and 100 % of a director’s annual compensation and such awards could be deferred under the Non-employee Directors Deferred Compensation Plan.

During 2021, 2020 and 2019, we granted 8,800 , 34,000 and 40,000 awards, respectively, to non-employee directors.

Stock-Compensation Expense

During 2020, 2019 and 2018, the Company recorded stock-based compensation expense of $ 9 million ($ 7 million, net of tax), $ 22 million ($ 17 million, net of tax) and $ 24 million ($ 18 million, net of tax), respectively.

During 2021, 2020 and 2019, we recorded stock-based compensation expense of $ 30 million ($ 21 million , net of tax), $ 9 million ($ 7 million, net of tax) and $ 22 million ($ 17 million, net of tax), respectively.

Employee Benefit Plans

Defined Contribution Savings Plans

The Company sponsors several defined contribution savings plans in the United States and certain foreign subsidiaries that provide certain eligible employees of the Company an opportunity to accumulate funds for retirement.

The Company matches portions of the contributions of participating employees on the basis specified by the plans.

The Company’s contributions to these plans were $ 23 million, $ 32 million and $ 33 million during 2020, 2019 and 2018, respectively.

We sponsor several defined contribution savings plans in the United States and certain foreign subsidiaries that provide certain of our eligible employees an opportunity to accumulate funds for retirement.

We match portions of the contributions of participating employees on the basis specified by the plans.

Our contributions to these plans were $ 22 million , $ 23 million and $ 32 million during 2021, 2020 and 2019, respectively.

Defined Benefit Pension Plans

The Company sponsors defined benefit pension plans in the United States and in certain foreign subsidiaries with some plans offering participation in the plans at the employees’ option.

We sponsor defined benefit pension plans in the United States and in certain foreign subsidiaries with some plans offering participation in the plans at the employees’ option.

Under these plans, benefits are based on an employee’s years of credited service and a percentage of final average compensation.

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(a) For the year ended December 31, 2021, $ 4 million and $ 2 million were included in operating expenses and selling, general and administrative expenses, respectively.

For the year ended December 31, 2019, $ 4 million and $ 1 million were included in operating expenses and selling, general and administrative expenses, respectively.

For the year ended December 31, 2018, $4 million and $2 million were included in operating expenses and selling, general and administrative expenses, respectively.

For the year ended December 31, 2020 and 2019, $ 4 million and $ 1 million were included in operating expenses and selling, general and administrative expenses, in each period.

(b) Included in selling, general and administrative expenses.

The estimated amount that will be amortized from accumulated other comprehensive loss into net periodic benefit cost in 2021 is $ 9 million, which consists primarily of net actuarial losses.

The Company uses a measurement date of December 31 for its pension plans.

We use a measurement date of December 31 for our pension plans.

The funded status of the pension plans were as follows:

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Actuarial (gain) loss ( 17 ) 84

Plan amendments ( 3 ) —

Currency translation adjustment

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Fair value of assets at end of current year $ 772 $ 722

Amounts recognized in the statement of financial position consist of the following:

As of December 31,

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$ ( 109 ) $ ( 204 )

The following assumptions were used to determine pension obligations and pension costs for the principal plans in which the Company’s employees participated:

The following assumptions were used to determine pension obligations and pension costs for the principal plans in which our employees participated:

For the Year Ended December 31,

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Long-term rate of return on plan assets 3.71 % 3.80 % 4.50 %

To select discount rates for its defined benefit pension plans, the Company uses a modeling process that involves matching the expected cash outflows of such plans, to yield curves constructed from portfolios of AA-rated fixed-income debt instruments.

The Company uses the average yields of the hypothetical portfolios as a discount rate benchmark.

The Company’s expected rate of return on plan assets of 7.00 % and 3.80 % for the U.S.

To select discount rates for our defined benefit pension plans, we use a modeling process that involves matching the expected cash outflows of such plans, to yield curves constructed from portfolios of AA-rated

fixed-income debt instruments.

We use the average yields of the hypothetical portfolios as a discount rate benchmark.

Our expected rate of return on plan assets of 6.75 % and 3.71 % for the U.S.

plans and non-U.S.

plans, respectively, used to determine pension obligations and pension costs, are long-term rates based on

historic plan asset returns in individual jurisdictions, over varying long-term periods combined with current market expectations and broad asset mix considerations.

As of December 31, 2020, plans with benefit obligations in excess of plan assets had accumulated benefit obligations of $ 518 million and plan assets of $ 307 million.

As of December 31, 2019, plans with benefit obligations in excess of plan assets had accumulated benefit obligations of $ 466 million and plan assets of $ 276 million.

plans, respectively, used to determine pension obligations and pension costs, are long-term rates based on historic plan asset returns in individual jurisdictions, over varying long-term periods combined with current market expectations and broad asset mix considerations.

As of December 31, 2021 and 2020, plans with projected benefit obligations in excess of plan assets had projected benefit obligations o f $ 453 million and $ 518 million , respectively, and plan assets of $ 297 million and $ 307 million, respectively .

As of December 31, 2021 and 2020, plans with accumulated benefit obligations in excess of plan assets had accumulated benefit obligations o f $ 453 million and $ 509 million, respectively, and plan assets of $ 303 million and $ 307 million, respectively.

The accumulated benefit obligation for all plans was $ 872 million and $ 916 million as of December 31, 2021 and 2020, respectively.

The Company expects to contribute approximately $ 4 million to the U.S.

We expect to contribute approximately $ 1 million to the U.S.

plans and $ 4 million to the non-U.S.

plans in 2022.

The Company’s defined benefit pension plans’ assets are invested primarily in mutual funds and may change in value due to various risks, such as interest rate and credit risk and overall market volatility.

Due to the level of risk associated with investment securities, it is reasonably possible that changes in the values of the pension plans’ investment securities will occur in the near term and that such changes would materially affect the amounts reported in the Company’s financial statements.

The defined benefit pension plans’ investment goals and objectives are managed by the Company or Company-appointed and member-appointed trustees with consultation from independent investment advisors.

While the objectives may vary slightly by country and jurisdiction, collectively the Company seeks to produce returns on pension plan investments, which are based on levels of liquidity and investment risk that the Company believes are prudent and reasonable, given prevailing capital market conditions.

Our defined benefit pension plans’ assets are invested primarily in mutual funds and may change in value due to various risks, such as interest rate and credit risk and overall market volatility.

The defined benefit pension plans’ investment goals and objectives are managed by us or Company-appointed and member-appointed trustees with consultation from independent investment advisors.

While the objectives may vary slightly by country and jurisdiction, collectively we seek to produce returns on pension plan investments, which are based on levels of liquidity and investment risk that we believe are prudent and reasonable, given prevailing capital market conditions.

The pension plans’ assets are managed in the long-term interests of the participants and the beneficiaries of the plans.

A suitable strategic asset allocation benchmark is determined for each plan to maintain a diversified portfolio, taking into account government requirements, if any, regarding unnecessary investment risk and protection of pension plans’ assets.

The Company believes that diversification of the pension plans’ assets is an important investment strategy to provide reasonable assurance that no single security or class of securities will have a disproportionate impact on the pension plans.

As such, the Company allocates assets among traditional equity, fixed income (government issued securities, corporate bonds and short-term cash investments) and other investment strategies.

We believe that diversification of the pension plans’ assets is an important investment strategy to provide reasonable assurance that no single security or class of securities will have a disproportionate impact on the pension plans.

As such, we allocate assets among traditional equity, fixed income (government issued securities, corporate bonds and short-term cash investments) and other investment strategies.

The equity component’s purpose is to provide a total return that will help preserve the purchasing power of the assets.

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The equity investments in the portfolios will represent a greater assumption of market volatility and risk as well as provide higher anticipated total return over the long term.

The equity component is expected to approximate 40 %- 60 % of the plans’ assets.

The equity component is expected to approximat e 35 %- 55 % of the plans’ assets.

The purpose of the fixed income component is to provide a deflation hedge, to reduce the overall volatility of the pension plans’ assets in relation to the liability and to produce current income.

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The alternative investment component is expected to approximate 5 %- 15 % of the plans’ assets.

The following table presents the defined benefit pension plans’ assets measured at fair value, as of December 31:

Asset Class Level 1 Level 2 Total

The following table presents the defined benefit pension plans’ assets measured at fair v alue:

As of December 31, 2021

Asset Class Level 1 Level 2 Level 3 Total

Cash equivalents and short-term investments $ 14 $ 48 $ — $ 62

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Total assets $ 330 $ 396 $ 46 $ 772

During 2021, we purchased and classified $ 46 million of investments as Level 3.

As of December 31, 2020

Asset Class Level 1 Level 2 Total

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Total assets $ 307 $ 415 $ 722

The Company estimates that future benefit payments from plan assets will be $ 30 million, $ 31 million, $ 31 million, $ 32 million, $ 33 million and $ 184 million for 2021, 2022, 2023, 2024, 2025 and 2026 to 2030, respectively.

We estimate that future benefit payments from plan assets will be $ 31 million, $ 31 million, $ 32 million, $ 33 million, $ 35 million and $ 188 million for 2022, 2023, 2024, 2025, 2026 and 2027 to 2031, respectively.

Multiemployer Plans

The Company contributes to a number of multiemployer plans under the terms of collective-bargaining agreements that cover a portion of its employees.

We contribute to a number of multiemployer plans under the terms of collective-bargaining agreements that cover a portion of our employees.

The risks of participating in these multiemployer plans are different from single-employer plans in the following aspects:

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(ii) if a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers;

(iii) if the Company elects to stop participating in a multiemployer plan, it may be required to contribute to such plan an amount based on the under-funded status of the plan;

and (iv) the Company has no involvement in the management of the multiemployer plans’ investments.

For the year ended December 31, 2020, the Company contributed a total of $ 7 million and during the years ended December 31, 2019 and 2018, the Company contributed a total of $ 9 million in each of the periods to multiemployer plans.

(iii) if we elect to stop participating in a multiemployer plan, we may be required to contribute to such plan an amount based on the under-funded status of the plan;

and (iv) we have no involvement in the management of the multiemployer plans’ investments.

For the years ended December 31, 2021 and 2020, we contributed a total of $ 7 million in each of the periods and for the year ended December 31, 2019 we contributed a total of $ 9 million to multiemployer plans.

Financial Instruments

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Currency Risk .

The Company uses currency exchange contracts to manage its exposure to changes in currency exchange rates associated with its non-U.S.-dollar denominated receivables and forecasted royalties, forecasted earnings of non-U.S.

We use currency exchange contracts to manage our exposure to changes in currency exchange rates associated with our non-U.S.-dollar denominated receivables and forecasted royalties, forecasted earnings of non-U.S.

subsidiaries and forecasted non-U.S.-dollar denominated acquisitions.

The Company primarily hedges a portion of its current-year currency exposure to the Australian, Canadian and New Zealand dollars, the euro and the British pound sterling.

We primarily hedge a portion of our current-year currency exposure to the Australian, Canadian and New Zealand dollars, the euro and the British pound sterling.

The majority of forward contracts do not qualify for hedge accounting treatment.

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Forward contracts used to hedge forecasted third-party receipts and disbursements up to 12 months are designated and do qualify as cash flow hedges.

The Company has designated its euro-denominated notes as a hedge of its investment in euro-denominated foreign operations.

The estimated net amount of existing gains or losses the Company expects to reclassify from accumulated

other comprehensive income (loss) to earnings for cash flow and net investment hedges over the next 12 months is not material.

We have designated our euro-denominated notes as a hedge of our investment in euro-denominated foreign operations.

The estimated net amount of existing gains or losses we expect to reclassify from accumulated other comprehensive income (loss) to earnings for cash flow and net investment hedges over the next 12 months is not material.

Interest Rate Risk .

The Company uses various hedging strategies including interest rate swaps and interest rate caps to create an appropriate mix of fixed and floating rate assets and liabilities.

The Company estimates that $ 19 million of loss currently recorded in accumulated other comprehensive income (loss) will be recognized in earnings over the next 12 months.

We use various hedging strategies including interest rate swaps and interest rate caps to create an appropriate mix of fixed and floating rate assets and liabilities.

We estimate that $ 18 million of losses currently recorded in accumulated other comprehensive income (loss) will be recognized in earnings over the next 12 months.

Commodity Risk.

The Company periodically enters into derivative commodity contracts to manage its exposure to changes in the price of gasoline.

These instruments were designated as freestanding derivatives and the changes in fair value are recorded in the Company’s consolidated results of operations.

We periodically enter into derivative commodity contracts to manage our exposure to changes in the price of gasoline.

These instruments were designated as freestanding derivatives and the changes in fair value are recorded in our consolidated results of operations.

Credit Risk and Exposure .

The Company is exposed to counterparty credit risks in the event of nonperformance by counterparties to various agreements and sales transactions.

The Company manages such risk by evaluating the financial position and creditworthiness of such counterparties and by requiring collateral in certain instances in which financing is provided.

The Company mitigates counterparty credit risk associated with its derivative contracts by monitoring the amount for which it is at risk with each counterparty, periodically evaluating counterparty creditworthiness and financial position, and where possible, dispersing its risk among multiple counterparties.

There were no significant concentrations of credit risk with any individual counterparty or groups of counterparties at December 31, 2020 or 2019, other than (i) risks related to the Company’s repurchase and guaranteed depreciation agreements with domestic and foreign car manufacturers, and primarily with respect to receivables for program cars that were disposed but for which the Company has not yet received payment from the manufacturers (see Note 2-Summary of Significant Accounting Policies), (ii) receivables from Realogy and Wyndham related to certain contingent, income tax and other corporate liabilities assumed by Realogy and Wyndham in connection with their disposition and (iii) risks related to leases which have been assumed by Realogy but of which the Company is a guarantor.

Concentrations of credit risk associated with trade receivables are considered minimal due to the Company’s diverse customer base.

The Company does not normally require collateral or other security to support credit sales.

We are exposed to counterparty credit risks in the event of nonperformance by counterparties to various agreements and sales transactions.

We manage such risk by evaluating the financial position and creditworthiness of such counterparties and by requiring collateral in certain instances in which financing is provided.

We mitigate counterparty credit risk associated with our derivative contracts by monitoring the amount for which we are at risk with each counterparty, periodically evaluating counterparty creditworthiness and financial position, and where possible, dispersing our risk among multiple counterparties.

There were no significant concentrations of credit risk with any individual counterparty or groups of counterparties at December 31, 2021 or 2020, other than (i) risks related to our repurchase and guaranteed depreciation agreements with domestic and foreign car manufacturers, and primarily with respect to receivables for program cars that were disposed but for which we have not yet received payment from the manufacturers (see Note 2-Summary of Significant Accounting Policies), (ii) receivables from Realogy and Wyndham related to certain contingent, income tax and other corporate liabilities assumed by Realogy and Wyndham in connection with their disposition and (iii) risks related to leases which have been assumed by Realogy but of which we are a guarantor.

Concentrations of credit risk associated with trade receivables are considered minimal due to our diverse customer base.

We do not normally require collateral or other security to support credit sales.

Derivative instruments and hedging activities

As described above, derivative assets and liabilities consist principally of currency exchange contracts, interest rate swaps, interest rate caps and commodity contracts.

The Company held derivative instruments with absolute notional values as follows:

We held derivative instruments with absolute notional values as follows:

As of December 31,

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(a) Represents $ 7.2 billion of interest rate caps sold, partially offset by approximately $ 4.7 billion of interest rate caps purchased at December 31, 2021 and $ 6.0 billion of interest rate caps sold, partially offset by approximately $ 2.9 billion of interest rate caps purchased at December 31, 2020.

These amounts exclude $ 3.1 billion and $ 3.2 billion of interest rate caps purchased by the Company’s Avis Budget Rental Car Funding subsidiary at December 31, 2020 and 2019, respectively.

These amounts exclude $ 3.0 billion and $ 3.1 billion of interest rate caps purchased by our Avis Budget Rental Car Funding subsidiary at December 31, 2021 and 2020, respectively.

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

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Total $ 20 $ 52 $ 3 $ 80

Amounts in this table exclude derivatives issued by Avis Budget Rental Car Funding, as it is not consolidated by the Company;

Amounts in this table exclude derivatives issued by Avis Budget Rental Car Funding, as it is not consolidated by us;

however, certain amounts related to the derivatives held by Avis Budget Rental Car Funding are included within accumulated other comprehensive income (loss), as discussed in Note 16-Stockholders’ Equity.

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

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

Year Ended December 31,

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(e) For the year ended December 31, 2021, included a $ 2 million loss in interest expense and a $ 1 million loss included in operating expenses.

For the year ended December 31, 2019, included an $ 11 million loss included in interest expense and a $ 4 million gain included in operating expenses.

For the year ended December 31, 2018, included a $ 19 million gain in interest expense and a $ 12 million gain included in operating expenses.

For the year ended December 31, 2020, included an $ 3 million loss included in interest exp ense and a $ 2 million loss included in operating expenses.

For the year ended December 31, 2019, included a $ 11 million loss in interest expense and a $ 4 million gain included in operating expenses.

(f) Primarily included in vehicle interest, net.

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Segment Information

The Company’s chief operating decision maker assesses performance and allocates resources based upon the separate financial information from the Company’s operating segments.

In identifying its reportable segments, the Company considered the nature of services provided, the geographical areas in which the segments operated and other relevant factors.

The Company aggregates certain of its operating segments into its reportable segments.

Management evaluates the operating results of each of its reportable segments based upon revenues and “Adjusted EBITDA,” which the Company defines as income (loss) from continuing operations before non-vehicle related depreciation and amortization, any impairment charges, restructuring and other related charges, early extinguishment of debt costs, non-vehicle related interest, transaction-related costs, net, charges for unprecedented personal-injury and other legal matters, non-operational charges related to shareholder activist activity, gain on sale of equity method investment in China, COVID-19 charges and income taxes.

Net charges for unprecedented personal-injury and other legal matters and gain on sale of equity method investment in China are recorded within operating expenses in the Company’s Consolidated Statement of Comprehensive Income.

Non-operational charges related to shareholder activist activity include third party advisory, legal and other professional service fees and are recorded within selling, general and administrative expenses in the Company’s Consolidated Statement of Comprehensive Income.

COVID-19 charges include unusual, direct and incremental costs due to the COVID-19 pandemic, such as minimum annual guaranteed rent in excess of concession fees for the period, overflow parking for idle vehicles and related shuttling costs, incremental cleaning supplies to sanitize vehicles and facilities and other charges, and losses associated with vehicles damaged in overflow parking lots, net of insurance proceeds, and are primarily recorded within operating expenses in the Company’s Consolidated Statement of Comprehensive Income.

The Company has revised its definition of Adjusted EBITDA to exclude COVID-19 charges.

The Company has not revised prior years' Adjusted EBITDA amounts because there were no other charges similar in nature to these.

The Company’s presentation of Adjusted EBITDA may not be comparable to similarly-titled measures used by other companies.

Our chief operating decision maker assesses performance and allocates resources based upon the separate financial information from our operating segments.

In identifying our reportable segments, we consider the nature of services provided, the geographical areas in which the segments operated and other relevant factors.

We aggregate certain of our operating segments into our reportable segments.

Management evaluates the operating results of each of our reportable segments based upon revenues and “Adjusted EBITDA,” which we define as income (loss) from continuing operations before non-vehicle related depreciation and amortization, any impairment charges, restructuring and other related charges, early extinguishment of debt costs, non-vehicle related interest, transaction-related costs, net, charges for unprecedented personal-injury and other legal matters, net, which includes amounts recorded in excess of $ 5 million related to class action lawsuits, non-operational charges related to shareholder activist activity, gain on sale of equity method investment in China, COVID-19 charges and income taxes.

Net charges for unprecedented personal-injury and other legal matters and gain on sale of equity method investment in China are recorded within operating expenses in our Consolidated Statement of Comprehensive Income.

Non-operational charges related to shareholder activist activity include third party advisory, legal and other professional service fees and are recorded within selling, general and administrative expenses in our Consolidated Statement of Comprehensive Income.

COVID-19 charges include unusual, direct and incremental costs due to the COVID-19 pandemic, such as minimum annual guaranteed rent in excess of concession fees for the period, overflow parking for idle vehicles and related shuttling costs, incremental cleaning supplies to sanitize vehicles and facilities and other charges, and losses associated with vehicles damaged in overflow parking lots, net of insurance proceeds, and are primarily recorded within operating expenses in our Consolidated Statement of Comprehensive Income.

We have revised our definition of Adju sted EBITDA to exclude amounts recorded in excess of $ 5 million related to class action lawsuits.

We have not revised prior years' Adjusted EBITDA amounts because there were no other charges similar in nature to these.

Our presentation of Adjusted EBITDA may not be comparable to similarly-titled measures used by other companies.

Year Ended December 31, 2021

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Non-vehicle depreciation and amortization

185 91 10 286

Assets exclusive of assets under vehicle programs

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Capital expenditures (excluding vehicles)

162 62 26 250

(a) Primarily represents unallocated corporate expenses and receivables from our former subsidiaries.

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Non-vehicle depreciation and amortization

152 104 — 256

Assets exclusive of assets under vehicle programs

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(a) Primarily represents unallocated corporate expenses and receivables from our former subsidiaries.

Provided below is a reconciliation of Adjusted EBITDA to income before income taxes.

Provided below is a reconciliation of Adjusted EBITDA to income (loss) before income taxes.

For the Year Ended December 31,

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Interest expense related to corporate debt, net

Early extinguishment of corporate debt 9 12 19

Interest expense 218 231 178

Early extinguishment of debt 136 9 12

COVID-19 charges (b)

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Gain on sale of equity method investment in China (c)

Income before income taxes $ ( 956 ) $ 287 $ 267

Income (loss) before income taxes $ 1,708 $ ( 956 ) $ 287

(a) Inc ludes amortization of intangible assets recognized in purchase accounting of $ 66 million in 2021, $ 66 million in 2020 and $ 56 million in 2019.

(b) Includes $116 million within operating expenses, $5 million within selling, general and administrative expenses and $1 million within vehicle depreciation and lease charges, net in our Consolidated Statements of Operations.

Primarily consisting of $60 million of minimum annual guaranteed rent in excess of concession fees, $48 million of incremental cleaning supplies to sanitize vehicles and facilities, overflow parking for idle vehicles and related shuttling costs and other charges, and $14 million of losses associated with vehicles damaged in overflow parking lots, net of insurance proceeds.

Includes operating expenses in our Consolidated Statement of Operations related to cloud computing costs of $ 7 million in 2021.

(b) The following table presents the unusual, direct and incremental costs due to the COVID-19 pandemic:

Minimum annual guaranteed rent in excess of concession fees, net $ ( 2 ) $ 60

Vehicles damaged in overflow parking lots, net of insurance proceeds ( 7 ) 14

Incremental cleaning supplies to sanitize vehicles and facilities, and over flow parking for idle vehicles — 48

Other charges 7 —

Operating expenses $ ( 3 ) $ 116

Vehicle depreciation and lease charges — 1

Selling, general and administrative expenses 1 5

COVID-19 charges, net $ ( 2 ) $ 122

(d) Reported within selling, general and administrative expenses in our Consolidated Statements of Operations .

The geographic segment information provided below is classified based on the geographic location of the Company’s subsidiaries.

The geographic segment information provided below is classified based on the geographic location of our subsidiaries.

United States All Other Countries Total

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Net long-lived assets 1,536 1,155 2,691

Subsequent Event

From January 1, 2022 through February 10, 2022, we repurchased approximately 2.1 million shares of our common stock at a cost of approximately $ 400 million under our Stock Repurchase Program.

Schedule II – Valuation and Qualifying Accounts

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3.2 Amended and Restated Bylaws of Avis Budget Group, Inc., dated August 10, 2020 (Incorporated by reference to Exhibit 3.2 to the Company’s Current Report on Form 8-K dated August 13, 2020).

4.1 Indenture dated as of March 11, 2015 among Avis Budget Car Rental, LLC and Avis Budget Finance, Inc., as Issuers, the Guarantors from time to time parties thereto and The Bank of Nova Scotia Trust Company of New York as Trustee (Incorporated by reference to Exhibit 4.1 to the Company’s Current Report on Form 8-K dated March 17, 2015).

4.2 Form of 5.25% Senior Notes Due 2025 (Incorporated by reference to Exhibit 4.2 to the Company’s Current Report on Form 8-K dated March 17, 2015).

4.3 Indenture dated as of March 29, 2016 for the 6.375% Senior Notes due 2024, among Avis Budget Car Rental LLC and Avis Budget Finance, Inc.

as Issuers the Guarantors from time to time parties thereto and Deutsche Bank Trust Company Americas as Trustee (Incorporated by reference to Exhibit 4.1 to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2016, dated May 4, 2016).

4.4 Indenture dated as of September 26, 2016 among Avis Budget Finance Plc, as Issuer, the Guarantors from time to time parties hereto and Deutsche Bank Trust Company Americas as Trustee, Deutsche Bank AG, London Branch as Paying Agent and Deutsche Bank Luxembourg, S.A.

as Registrar (Incorporated by reference to Exhibit 4.1 to the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2016, dated November 3, 2016).

4.5 Form of 4.125% Senior Notes due 2024 (Incorporated by reference to Exhibit 4.2 to the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2016, dated November 3, 2016).

4.6 Indenture dated as of March 8, 2017 among Avis Budget Finance, plc, as Issuer, the Guarantors from time to time parties hereto, Deutsche Bank Trust Company Americas, as Trustee, Deutsche Bank AG, London Branch, as Paying Agent and Deutsche Bank Luxembourg S.A., as Registrar (Incorporated by reference to Exhibit 4.2 to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2017, dated May 4, 2017).

4.7 Form of 4.50% Senior Notes Due 2025 (Incorporated by reference to Exhibit 4.3 to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2017, dated May 4, 2017).

4.8 Indenture dated as of October 4, 2018 among Avis Budget Finance, plc, as Issuer, the Guarantors from time to time parties thereto, Deutsche Bank Trust Company Americas, as Trustee, Deutsche Bank AG, London Branch, as Paying Agent and Deutsche Bank Luxembourg S.A., as Registrar (Incorporated by reference to Exhibit 4.1 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2018 dated November 6, 2018).

4.9 Form of 4.75% Senior Notes Due 2026 (Incorporated by reference to Exhibit 4.2 to the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2018, dated November 6, 2018).

4.10 Indenture dated as of July 3, 2019 among Avis Budget Car Rental, LLC and Avis Budget Finance, Inc., as Issuers, the Guarantors from time to time parties thereto and Deutsche Bank Trust Company Americas, as Trustee.

(Incorporated by reference to Exhibit 4.1 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2019 dated August 6, 2019).

4.11 Form of 5.75% Senior Notes Due 2027.

(Incorporated by reference to Exhibit 4.2 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2019 dated August 6, 2019).

4.12 Indenture, dated as of May 12, 2020, by and among Avis Budget Car Rental, LLC and Avis Budget Finance, Inc., as issuers, the guarantors party thereto and Deutsche Bank Trust Company Americas, as trustee and notes collateral agent (Incorporated by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K dated May 12, 2020).

4.13 First Supplemental Indenture, dated as of August 6, 2020, to the Indenture dated as of July 3, 2019, by and among Avis Budget Car Rental, LLC and Avis Budget Finance, Inc., as issuers, the guarantors party thereto and Deutsche Bank Trust Company Americas, as trustee (Incorporated by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K dated August 7, 2020).

4.14 Form of 10.500% Senior Secured Note due 2025 (Incorporated by reference to Exhibit 4.2 to the Company's Current Report on Form 8-K dated May 12, 2020).

4.1 Indenture dated as of September 26, 2016 among Avis Budget Finance plc, as Issuer, the Guarantors from time to time parties hereto and Deutsche Bank Trust Company Americas as Trustee, Deutsche Bank AG, London Branch as Paying Agent and Deutsche Bank Luxembourg S.A., as Registrar, governing the 4.125% Senior Notes due 2024 (Incorporated by reference to Exhibit 4.1 to the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2016, dated November 3, 2016).

4.2 Indenture dated as of March 8, 2017 among Avis Budget Finance, plc, as Issuer, the Guarantors from time to time parties hereto, Deutsche Bank Trust Company Americas, as Trustee, Deutsche Bank AG, London Branch, as Paying Agent and Deutsche Bank Luxembourg S.A., as Registrar, governing the 4.

50 % Senior Notes due 2025 (Incorporated by reference to Exhibit 4.2 to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2017, dated May 4, 2017).

4.3 Indenture dated as of October 4, 2018 among Avis Budget Finance, plc, as Issuer, the Guarantors from time to time parties thereto, Deutsche Bank Trust Company Americas, as Trustee, Deutsche Bank AG, London Branch, as Paying Agent and Deutsche Bank Luxembourg S.A., as Registrar, governing the 4.75% Senior Notes due 2026 (Incorporated by reference to Exhibit 4.1 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2018 dated November 6, 2018).

4.4 Indenture dated as of July 3, 2019 among Avis Budget Car Rental, LLC and Avis Budget Finance, Inc., as Issuers, the Guarantors from time to time parties thereto and Deutsche Bank Trust Company Americas, as Trustee, governing the 5.75% Senior Notes due 2027 (Incorporated by reference to Exhibit 4.1 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2019 dated August 6, 2019).

4.5 First Supplement Indenture, dated as of August 6, 2020, to the indenture dated as of July 3, 2019 by and among Avis Budget Car Rental, LLC and Avis Budget Finance, Inc., as issuers, the guarantors party thereto and Deutsche Bank Trust Company Americas, as trustee (Incorporated by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K dated August 7, 2020).

4.6 Indenture, dated as of March 1, 2021, by and among Avis Budget Car Rental, LLC and Avis Budget Finance, Inc., as issuers, the guarantors party thereto and Deutsche Bank Trust Company Americas, as trustee, governing the 5.375% Senior Notes due 2029 (incorporated by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K dated March 1, 2021).

4.7 Indenture, dated as of March 23, 2021, by and among Avis Budget Car Rental, LLC and Avis Budget Finance, Inc., as issuers, the guarantors party thereto and Deutsche Bank Trust Company Americas, as trustee, governing the 4.75% Senior Notes due 2028 (Incorporated by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K dated March 23, 2021).

4.8 Description of the Company’s Securities Registered Pursuant to Section 12 of the Securities Exchange Act of 1934.

1 unchanged sentence

and Joseph Ferraro (Incorporated by reference to Exhibit 10.5 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2015, dated February 24, 2016).†

10.2 Agreement between Avis Budget Group, Inc.

and Michael Tucker.

(Incorporated by reference to Exhibit 10.6 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 dated February 21, 2019).†

10.2(a) Separation Agreement, dated March 20, 2020, between Michael K.

Tucker and Avis Budget Group, Inc.

10.3 Offer Letter, dated February 15, 2019, between John North and Avis Budget Group, Inc.

(Incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K dated February 19, 2019).

10.3(a) Severance Agreement between John F.

North, III and Avis Budget Group, Inc.

dated August 15, 2019.

(Incorporated by reference to Exhibit 10.2 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2019 dated November 1, 2019).

10.3(b) Separation Agreement, dated August 12, 2020, between John North and Avis Budget Group, Inc.

(Incorporated by reference to Exhibit 10.3 to the Company's Current Report on Form 8-K dated August 13, 2020).

10.3(c) Amendment, dated September 28, 2020, to Separation Agreement, dated August 12, 2020, between John North and Avis Budget Group, Inc.

(Incorporated by reference to Exhibit 10.5 to the Company's Quarterly Report on Form 10-Q for the period ended September 30, 2020, dated October 30, 2020).

10.2 Service Agreement between Patrick Rankin and Avis Budget Services Limited, dated February 22, 2019 (Incorporated by reference to Exhibit 10.8 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2019, dated February 20, 2020).

4 unchanged sentences

(incorporated by reference to Exhibit 10.2 to the Company's Current Report on Form 8-K dated August 13, 2020).

10.6 Offer Letter, dated February 4, 2021, between Veresh Sita and Avis Budget Group, Inc.

10.7 Avis Budget Group, Inc.

1 unchanged sentence

10.8 Third Amended and Restated Cooperation Agreement, dated as of February 23, 2020, by and among Avis Budget Group, Inc., SRS Investment Management, LLC and certain of its affiliates (Incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K dated February 23, 2020).

10.9(a) Amendment, dated August 12, 2020, to Third Amended and Restated Cooperation Agreement, dated as of February 23, 2020, by and among Avis Budget Group, Inc., SRS Investment Management, LLC and certain of its affiliates (Incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K dated August 13, 2020).

10.9 Amendment, dated August 12, 2020, to Third Amended and Restated Cooperation Agreement, dated as of February 23, 2020, by and among Avis Budget Group, Inc., SRS Investment Management, LLC and certain of its affiliates (Incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K dated August 13, 2020).

10.10 Second Amendment, dated September 15, 2021, to the Third Amended and Restated Cooperation Agreement, dated as of February 23, 2020, by and among Avis Budget Group, Inc., SRS Investment Management, LLC and certain of its affiliates (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K dated September 15, 2021.) †

10.11 Avis Budget Group, Inc.

Amended and Restated Equity and Incentive Plan (Incorporated by reference to Annex A to the Company's Definitive Proxy Statement on Schedule 14A, dated March 26, 2019).†

10.11 1997 Stock Incentive Plan (Incorporated by reference to Appendix E to the Joint Proxy Statement/ Prospectus included as part of the Company’s Registration Statement on Form S-4, Registration No.

333-34517, dated August 28, 1997).†

10.11(a) Amendment to 1997 Stock Incentive Plan dated March 27, 2000 (Incorporated by reference to Exhibit 10.12(b) to the Company’s Annual Report on Form 10-K for the year ended December 31, 2000 dated March 29, 2001).†

10.11(b) Amendment to 1997 Stock Incentive Plan dated March 28, 2000 (Incorporated by reference to Exhibit 10.12(c) to the Company’s Annual Report on Form 10-K for the year ended December 31, 2000 dated March 29, 2001).†

10.11(c) Amendment to 1997 Stock Incentive Plan dated January 3, 2001 (Incorporated by reference to Exhibit 10.12(d) to the Company’s Annual Report on Form 10-K for the year ended December 31, 2000 dated March 29, 2001).†

10.12 Amendment to Various Equity-Based Plans (Incorporated by reference to Exhibit 10.16 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2005 dated March 1, 2006).†

10.12 Amendment to the Avis Budget Group, Inc.

Amended and Restated Equity and Incentive Plan dated October 26 , 20 21 (Incorporated by reference to Exhibit 10.

3 to the Company’s Quarterly Report on Form 10- Q dated November 2, 20 2 1).†

10.13 Form of Award Agreement - Restricted Stock Units.

14 unchanged sentences

Savings Restoration Plan, amended and restated as of November 1, 2008 (Incorporated by reference to Exhibit 10.18 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2008, dated February 26, 2009).†

10.20 Amended Retirement Equalization Benefit Plan (Incorporated by reference to Exhibit 10.59 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2007, dated February 29, 2008).†

10.20 Avis Rent A Car System, LLC Pension Plan.

2 unchanged sentences

10.22 Tax Sharing Agreement among Cendant Corporation*, Realogy Corporation, Wyndham Worldwide Corporation and Travelport Inc., dated as of July 28, 2006 (Incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K dated August 1, 2006).

10.23(a) Amendment to the Tax Sharing Agreement, dated July 28, 2006, among Avis Budget Group, Inc., Realogy Corporation, Wyndham Worldwide Corporation and Travelport Inc.

10.23 Amendment to the Tax Sharing Agreement, dated July 28, 2006, among Avis Budget Group, Inc., Realogy Corporation, Wyndham Worldwide Corporation and Travelport Inc.

(Incorporated by reference to Exhibit 10.4 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2008 dated August 7, 2008).

10.24 Second Amended and Restated Base Indenture, dated as of June 3, 2004, among Cendant Rental Car Funding (AESOP) LLC***, as Issuer, and The Bank of New York, as Trustee (Incorporated by reference to Exhibit 10.7 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2004, dated August 2, 2004).

10.24(a) Supplemental Indenture No.

10.25 Supplemental Indenture No.

1, dated as of December 23, 2005, among Cendant Rental Car Funding (AESOP) LLC***, as Issuer, and The Bank of New York, as Trustee, to the Second Amended and Restated Base Indenture, dated as of June 3, 2004 (Incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K dated January 20, 2006).

10.24(b) Supplemental Indenture No.

10.26 Supplemental Indenture No.

2, dated as of May 9, 2007, among Avis Budget Rental Car Funding (AESOP) LLC, as Issuer, and The Bank of New York Trust Company, N.A.

(as successor in interest to The Bank of New York), as Trustee, to the Second Amended and Restated Base Indenture, dated as of June 3, 2004 (Incorporated by reference to Exhibit 10.6 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2007, dated August 8, 2007).

10.24(c) Supplemental Indenture No.

10.27 Supplemental Indenture No.

3, dated as of August 16, 2013, among Avis Budget Rental Car Funding (AESOP) LLC, as Issuer, and The Bank of New York Trust Company, N.A.

2 unchanged sentences

10.8 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2004, dated August 2, 2004).

10.25(a) First Amendment, dated as of December 23, 2005, among AESOP Leasing L.P., as Borrower, Quartx Fleet Management, Inc., as a Permitted Nominee, PV Holding Corp., as a Permitted Nominee, and Cendant Rental Car Funding (AESOP) LLC***, as Lender, to the Second Amended and Restated Loan Agreement, dated as of June 3, 2004 (Incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K dated January 20, 2006).

10.25(b) Second Amendment, dated as of May 9, 2007, among AESOP Leasing L.P., as Borrower, PV Holding Corp., as a Permitted Nominee, Quartx Fleet Management, Inc., as a Permitted Nominee, and Avis Budget Rental Car Funding (AESOP) LLC, as Lender, to the Second Amended and Restated Loan Agreement, dated as of June 3, 2004 (Incorporated by reference to Exhibit 10.8 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2007, dated August 8, 2007).

10.25(c) Third Amendment, dated as of August 16, 2013, among AESOP Leasing L.P., as Borrower, PV Holding Corp., as a Permitted Nominee, Quartx Fleet Management, Inc., as a Permitted Nominee, and Avis Budget Rental Car Funding (AESOP) LLC, as Lender, to the Second Amended and Restated Loan Agreement, dated as of June 3, 2004 (Incorporated by reference to Exhibit 10.36(c) to the Company’s Annual Report on Form 10-K for the year ended December 31, 2013, dated February 20, 2014).

10.29 First Amendment, dated as of December 23, 2005, among AESOP Leasing L.P., as Borrower, Quartx Fleet Management, Inc., as a Permitted Nominee, PV Holding Corp., as a Permitted Nominee, and Cendant Rental Car Funding (AESOP) LLC***, as Lender, to the Second Amended and Restated Loan Agreement, dated as of June 3, 2004 (Incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K dated January 20, 2006).

10.30 Second Amendment, dated as of May 9, 2007, among AESOP Leasing L.P., as Borrower, PV Holding Corp., as a Permitted Nominee, Quartx Fleet Management, Inc., as a Permitted Nominee, and Avis Budget Rental Car Funding (AESOP) LLC, as Lender, to the Second Amended and Restated Loan Agreement, dated as of June 3, 2004 (Incorporated by reference to Exhibit 10.8 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2007, dated August 8, 2007).

10.31 Third Amendment, dated as of August 16, 2013, among AESOP Leasing L.P., as Borrower, PV Holding Corp., as a Permitted Nominee, Quartx Fleet Management, Inc., as a Permitted Nominee, and Avis Budget Rental Car Funding (AESOP) LLC, as Lender, to the Second Amended and Restated Loan Agreement, dated as of June 3, 2004 (Incorporated by reference to Exhibit 10.36(c) to the Company’s Annual Report on Form 10-K for the year ended December 31, 2013, dated February 20, 2014).

10.32 Amended and Restated Loan Agreement, dated as of June 3, 2004, among AESOP Leasing L.P., as Borrower, and Cendant Rental Car Funding (AESOP) LLC***, as Lender (Incorporated by reference to Exhibit 10.29(a) to the Company’s Annual Report on Form 10-K for the year ended December 31, 2006, dated March 1, 2007).

10.26(a) First Amendment, dated as of December 23, 2005, among AESOP Leasing L.P., as Borrower, and Cendant Rental Car Funding (AESOP) LLC***, as Lender, to the Amended and Restated Loan Agreement, dated as of June 3, 2004 (Incorporated by reference to Exhibit 10.29(b) to the Company’s Annual Report on Form 10-K for the year ended December 31, 2006, dated March 1, 2007).

10.26(b) Second Amendment, dated as of the May 9, 2007, among AESOP Leasing L.P., as Borrower, and Avis Budget Rental Car Funding (AESOP) LLC, as Lender, to the Amended and Restated Loan Agreement, dated as of June 3, 2004 (Incorporated by reference to Exhibit 10.7 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2007, dated August 8, 2007).

10.26(c) Third Amendment, dated as of August 16, 2013, among AESOP Leasing L.P., as Borrower, and Avis Budget Rental Car Funding (AESOP) LLC, as Lender, to the Amended and Restated Loan Agreement, dated as of June 3, 2004 (Incorporated by reference to Exhibit 10.37(c) to the Company’s Annual Report on Form 10-K for the year ended December 31, 2013, dated February 20, 2014).

10.33 First Amendment, dated as of December 23, 2005, among AESOP Leasing L.P., as Borrower, and Cendant Rental Car Funding (AESOP) LLC***, as Lender, to the Amended and Restated Loan Agreement, dated as of June 3, 2004 (Incorporated by reference to Exhibit 10.29(b) to the Company’s Annual Report on Form 10-K for the year ended December 31, 2006, dated March 1, 2007).

10.34 Second Amendment, dated as of the May 9, 2007, among AESOP Leasing L.P., as Borrower, and Avis Budget Rental Car Funding (AESOP) LLC, as Lender, to the Amended and Restated Loan Agreement, dated as of June 3, 2004 (Incorporated by reference to Exhibit 10.7 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2007, dated August 8, 2007).

10.35 Third Amendment, dated as of August 16, 2013, among AESOP Leasing L.P., as Borrower, and Avis Budget Rental Car Funding (AESOP) LLC, as Lender, to the Amended and Restated Loan Agreement, dated as of June 3, 2004 (Incorporated by reference to Exhibit 10.37(c) to the Company’s Annual Report on Form 10-K for the year ended December 31, 2013, dated February 20, 2014).

10.36 Second Amended and Restated Master Motor Vehicle Operating Lease Agreement, dated as of June 3, 2004, among AESOP Leasing L.P., as Lessor, and Cendant Car Rental Group, Inc.**, as Lessee and as Administrator (Incorporated by reference to Exhibit 10.9 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2004, dated August 2, 2004).

10.27(a) First Amendment, dated December 23, 2005, among AESOP Leasing L.P., as Lessor, and Cendant Car Rental Group, Inc.**, as Lessee and as Administrator, to the Second Amended and Restated Master Motor Vehicle Operating Lease Agreement, dated as of December 23, 2005 (Incorporated by reference to Exhibit 10.3 to the Company’s Current Report on Form 8-K dated January 20, 2006).

10.27(b) Third Amendment, dated as of May 9, 2007, among AESOP Leasing L.P., as Lessor and Avis Budget Car Rental, LLC, as Lessee and as the Administrator, to the Second Amended and Restated Master Motor Vehicle Operating Lease Agreement, dated as of June 3, 2004 (Incorporated by reference to Exhibit 10.9 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2007, dated August 8, 2007).

10.27(c) Fourth Amendment, dated as of August 16, 2013, among AESOP Leasing L.P., as Lessor and Avis Budget Car Rental, LLC, as Lessee and as the Administrator, to the Second Amended and Restated Master Motor Vehicle Operating Lease Agreement, dated as of June 3, 2004 (Incorporated by reference to Exhibit 10.38(c) to the Company’s Annual Report on Form 10-K for the year ended December 31, 2013, dated February 20, 2014).

10.37 First Amendment, dated December 23, 2005, among AESOP Leasing L.P., as Lessor, and Cendant Car Rental Group, Inc.**, as Lessee and as Administrator, to the Second Amended and Restated Master Motor Vehicle Operating Lease Agreement, dated as of June 3, 2004 (Incorporated by reference to Exhibit 10.3 to the Company’s Current Report on Form 8-K dated January 20, 2006).

10.38 Third Amendment, dated as of May 9, 2007, among AESOP Leasing L.P., as Lessor and Avis Budget Car Rental, LLC, as Lessee and as the Administrator, to the Second Amended and Restated Master Motor Vehicle Operating Lease Agreement, dated as of June 3, 2004 (Incorporated by reference to Exhibit 10.9 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2007, dated August 8, 2007).

10.39 Fourth Amendment, dated as of August 16, 2013, among AESOP Leasing L.P., as Lessor and Avis Budget Car Rental, LLC, as Lessee and as the Administrator, to the Second Amended and Restated Master Motor Vehicle Operating Lease Agreement, dated as of June 3, 2004 (Incorporated by reference to Exhibit 10.38(c) to the Company’s Annual Report on Form 10-K for the year ended December 31, 2013, dated February 20, 2014).

10.40 Amended and Restated Master Motor Vehicle Finance Lease Agreement, dated as of June 3, 2004, among AESOP Leasing L.P., as Lessor, Cendant Car Rental Group, Inc.**, as Lessee, as Administrator and as Finance Lease Guarantor, Avis Rent A Car System, Inc.****, as Lessee, and Budget Rent A Car System, Inc., as Lessee (Incorporated by reference to Exhibit 10.30(a) to the Company’s Annual Report on Form 10-K for the year ended December 31, 2006, dated March 1, 2007).

10.28(a) First Amendment, dated as of December 23, 2005, among AESOP Leasing L.P., as Lessor, Cendant Car Rental Group, Inc.**, as Lessee, as Administrator and as Finance Lease Guarantor, Avis Rent A Car System, Inc.****, as Lessee, and Budget Rent A Car System, Inc., as Lessee, to the Amended and Restated Master Motor Vehicle Finance Lease Agreement, dated as of June 3, 2004 (Incorporated by reference to Exhibit 10.30(b) to the Company’s Annual Report on Form 10-K for the year ended December 31, 2006, dated March 1, 2007).

10.28(b) Third Amendment, dated as of May 9, 2007, among AESOP Leasing L.P., as Lessor, Avis Budget Car Rental, LLC, as Lessee, as Administrator and as Finance Lease Guarantor, Avis Rent A Car System, LLC, as Lessee, and Budget Rent A Car System, Inc., as Lessee, to the Amended and Restated Master Motor Vehicle Finance Lease Agreement, dated as of June 3, 2004 (Incorporated by reference to Exhibit 10.11 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2007, dated August 8, 2007).

10.28(c) Fourth Amendment, dated as of August 16, 2013, among AESOP Leasing L.P., as Lessor, Avis Budget Car Rental, LLC, as Lessee, as Administrator and as Finance Lease Guarantor, Avis Rent A Car System, LLC, as Lessee, and Budget Rent A Car System, Inc., as Lessee, to the Amended and Restated Master Motor Vehicle Finance Lease Agreement, dated as of June 3, 2004 (Incorporated by reference to Exhibit 10.39(c) to the Company’s Annual Report on Form 10-K for the year ended December 31, 2013, dated February 20, 2014).

10.41 First Amendment, dated as of December 23, 2005, among AESOP Leasing L.P., as Lessor, Cendant Car Rental Group, Inc.**, as Lessee, as Administrator and as Finance Lease Guarantor, Avis Rent A Car System, Inc.****, as Lessee, and Budget Rent A Car System, Inc., as Lessee, to the Amended and Restated Master Motor Vehicle Finance Lease Agreement, dated as of June 3, 2004 (Incorporated by reference to Exhibit 10.30(b) to the Company’s Annual Report on Form 10-K for the year ended December 31, 2006, dated March 1, 2007).

10.42 Third Amendment, dated as of May 9, 2007, among AESOP Leasing L.P., as Lessor, Avis Budget Car Rental, LLC, as Lessee, as Administrator and as Finance Lease Guarantor, Avis Rent A Car System, LLC, as Lessee, and Budget Rent A Car System, Inc., as Lessee, to the Amended and Restated Master Motor Vehicle Finance Lease Agreement, dated as of June 3, 2004 (Incorporated by reference to Exhibit 10.11 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2007, dated August 8, 2007).

10.43 Fourth Amendment, dated as of August 16, 2013, among AESOP Leasing L.P., as Lessor, Avis Budget Car Rental, LLC, as Lessee, as Administrator and as Finance Lease Guarantor, Avis Rent A Car System, LLC, as Lessee, and Budget Rent A Car System, Inc., as Lessee, to the Amended and Restated Master Motor Vehicle Finance Lease Agreement, dated as of June 3, 2004 (Incorporated by reference to Exhibit 10.39(c) to the Company’s Annual Report on Form 10-K for the year ended December 31, 2013, dated February 20, 2014).

10.44 AESOP I Operating Sublease Agreement dated as of March 26, 2013 between Zipcar, Inc.

and Avis Budget Car Rental, LLC (Incorporated by reference to Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2013 dated May 8, 2013).

, as Sublessee and Avis Budget Car Rental, LLC , as Sublessor (Incorporated by reference to Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2013 dated May 8, 2013).

10.45 Second Amended and Restated Administration Agreement, dated as of June 3, 2004, among Cendant Rental Car Funding (AESOP) LLC***, AESOP Leasing L.P., AESOP Leasing Corp.

II, Avis Rent A Car System, Inc.****, Budget Rent A Car System, Inc., Cendant Car Rental Group, Inc.** and The Bank of New York, as Trustee (Incorporated by reference to Exhibit 10.34 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2005, dated March 1, 2006).

10.30(a) First Amendment, dated as of August 16, 2013, among Avis Budget Rental Car Funding (AESOP) LLC, AESOP Leasing L.P., AESOP Leasing Corp.

10.46 First Amendment, dated as of August 16, 2013, among Avis Budget Rental Car Funding (AESOP) LLC, AESOP Leasing L.P., AESOP Leasing Corp.

II, Avis Rent A Car System, LLC, Budget Rent A Car System, Inc.

and Avis Budget Car Rental, LLC, as Administrator, to the Second Amended and Restated Administration Agreement dated as of June 3, 2004 (Incorporated by reference to Exhibit 10.41(a) to the Company’s Annual Report on Form 10-K for the year ended December 31, 2013, dated February 20, 2014).

10.31 Amended and Restated Series 2015-3 Supplement, dated as of August 16, 2018, between Avis Budget Rental Car Funding (AESOP) LLC, as Issuer, Avis Budget Car Rental, LLC, as Administrator, JPMorgan Chase Bank, N.A., as Administrative Agent, the Non-Conduit Purchasers, the CP Conduit Purchasers, the Committed Note Purchasers, the Funding Agents and APA Banks named therein, and The Bank of New York Mellon Trust Company, N.A., as trustee and as Series 2015-3 Agent (Incorporated by reference to Exhibit 10.43 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 dated February 21, 2019).

10.32 Third Amended and Restated Series 2010-6 Supplement, dated as of August 16, 2018, by and among Avis Budget Rental Car Funding (AESOP) LLC, as Issuer, Avis Budget Car Rental, LLC, as Administrator, JPMorgan Chase Bank, N.A., as Administrative Agent, the Non-Conduit Purchasers, the CP Conduit Purchasers, the Committed Note Purchasers, the Funding Agents and APA Banks named therein and The Bank of New York Mellon Trust Company, N.A., as Trustee and as Series 2010-6 Agent (Incorporated by reference to Exhibit 10.42 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 dated February 21, 2019).

10.33 Series 2016-1 Supplement, dated as of March 30, 2016, between Avis Budget Rental Car Funding (AESOP) LLC and the Bank of New York Mellon Trust Company, N.A., as trustee and as Series 2016-1 Agent (Incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K dated April 5, 2016).

10.34 Series 2016-2 Supplement, dated as of June 1, 2016, between Avis Budget Rental Car Funding (AESOP) LLC and the Bank of New York Mellon Trust Company, N.A., as trustee and as Series 2016-2 Agent (Incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K dated June 7, 2016).

10.35 Series 2017-1 Supplement, dated as of March 15, 2017, between Avis Budget Rental Car Funding (AESOP) LLC and the Bank of New York Mellon Trust Company, N.A., as trustee and as Series 2017-1 Agent (Incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K dated March 21, 2017).

10.36 Series 2017-2 Supplement, dated as of December 13, 2017, between Avis Budget Rental Car Funding (AESOP) LLC and the Bank of New York Mellon Trust Company, N.A., as trustee and as Series 2017-2 Agent (Incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K dated December 19, 2017).

10.47 Second Amended and Restated Series 2015-3 Supplement, dated as of June 18, 2021 , between Avis Budget Rental Car Funding (AESOP) LLC, as Issuer, Avis Budget Car Rental, LLC, as Administrator, JPMorgan Chase Bank, N.A., as Administrative Agent, the Non-Conduit Purchasers, the CP Conduit Purchasers, the Committed Note Purchasers, the Funding Agents and APA Banks named therein, and The Bank of New York Mellon Trust Company, N.A., as trustee and as Series 2015-3 Agent (Incorporated by reference to Exhibit 10.

5 to the Company’s Current Report on Form 8 -K dated June 23, 2021 ).

10.48 Fourth Amended and Restated Series 2010-6 Supplement, dated as of June 18, 2021 , by and among Avis Budget Rental Car Funding (AESOP) LLC, as Issuer, Avis Budget Car Rental, LLC, as Administrator, JPMorgan Chase Bank, N.A., as Administrative Agent, the Non-Conduit Purchasers, the CP Conduit Purchasers, the Committed Note Purchasers, the Funding Agents and APA Banks named therein and The Bank of New York Mellon Trust Company, N.A., as Trustee and as Series 2010-6 Agent (Incorporated by reference to Exhibit 10.4 to the Company’s Current Report on Form 8 -K dated June 23, 2021 ).

10.49 Series 2017-1 Supplement, dated as of March 15, 2017, between Avis Budget Rental Car Funding (AESOP) LLC and T he Bank of New York Mellon Trust Company, N.A., as trustee and as Series 2017-1 Agent (Incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K dated March 21, 2017).

10.50 Series 2017-2 Supplement, dated as of December 13, 2017, between Avis Budget Rental Car Funding (AESOP) LLC and T he Bank of New York Mellon Trust Company, N.A., as trustee and as Series 2017-2 Agent (Incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K dated December 19, 2017).

10.51 Series 2018-1 Supplement, dated as of April 30, 2018, between Avis Budget Rental Car Funding (AESOP) LLC and The Bank of New York Mellon Trust Company, N.A., as trustee and as Series 2018-1 Agent (Incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K dated May 4, 2018).

10.38 Series 2018-2 Supplement, dated as of October 25, 2018, between Avis Budget Rental Car Funding (AESOP) LLC and The Bank of New York Mellon Trust Company, N.A., as trustee and as Series 2018-2 Agent (Incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K dated October 30, 2018).

10.52 Amended and Restated Series 2018-2 Supplement, dated as of June 18, 2021 , between Avis Budget Rental Car Funding (AESOP) LLC and The Bank of New York Mellon Trust Company, N.A., as trustee and as Series 2018-2 Agent (Incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K dated June 23, 2021 ).

10.53 Series 2019-1 Supplement, dated as of February 13, 2019, between Avis Budget Rental Car Funding (AESOP) LLC and The Bank of New York Mellon Trust Company, N.A., as trustee and as Series 2019-1 Agent.

(Incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K dated February 20, 2019).

10.40 Series 2019-2 Supplement, dated as of April 23, 2019, between Avis Budget Rental Car Funding (AESOP) LLC and The Bank of New York Mellon Trust Company, N.A., as trustee and as Series 2019-2 Agent (Incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K dated April 29, 2019).

10.54 Amended and Restated Series 2019-2 Supplement, dated as of June 1 8 , 2021 between Avis Budget Rental Car Funding (AESOP) LLC and The Bank of New York Mellon Trust Company, N.A., as trustee and as Series 2019-2 Agent (Incorporated by reference to Exhibit 10.

2 to the Company’s Current Report on Form 8-K dated June 23, 2021 ).

10.55 Series 2019-3 Supplement, dated as of August 27, 2019, between Avis Budget Rental Car Funding (AESOP) LLC and The Bank of New York Mellon Trust Company, N.A., as trustee and as Series 2019-3 Agent.

(Incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K dated August 29, 2019).

10.42 Series 2020-1 Supplement, dated as of January 29, 2020, between Avis Budget Rental Car Funding (AESOP) LLC and The Bank of New York Mellon Trust Company, N.A., as trustee and as Series 2020-1 Agent.

(Incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K dated January 20, 2020).

10.56 Amended and Restated Series 2020-1 Supplement, dated as of June 18, 2021 , between Avis Budget Rental Car Funding (AESOP) LLC and The Bank of New York Mellon Trust Company, N.A., as trustee and as Series 2020-1 Agent.

(Incorporated by reference to Exhibit 10.

3 to the Company’s Current Report on Form 8-K dated June 23, 2021 ).

10.57 Series 2020-2 Supplement, dated as of August 12, 2020, between Avis Budget Rental Car Funding (AESOP) LLC and The Bank of New York Mellon Trust Company, N.A., as trustee and as Series 2020-2 Agent (Incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K dated August 14, 2020).

10.44 Fifth Amended and Restated Credit Agreement dated as of February 13, 2018, among Avis Budget Holdings, LLC, Avis Budget Car Rental, LLC, Avis Budget Group, Inc., the Subsidiary Borrowers from time to time parties thereto, the several banks and other financial institutions or entities from time to time parties thereto, JPMorgan Chase Bank, N.A., as Administrative Agent, Deutsche Bank Securities Inc., as Syndication Agent, Citibank, N.A., Bank of America, N.A., Barclays Bank plc and Credit Agricole Corporate and Investment Bank, as Co-Documentation Agents (Incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K dated February 16, 2018).

10.44(a) First Amendment to the Fifth Amended and Restated Credit Agreement dated as of February 13, 2018, among Avis Budget Holdings, LLC, Avis Budget Car Rental, LLC, Avis Budget Group, Inc., the Subsidiary Borrowers from time to time parties thereto, JPMorgan Chase Bank, N.A., as Administrative Agent, and the other lenders party thereto (Incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K dated February 6, 2020).

10.44(b) Second Amendment, dated as of April 27, 2020, to the Fifth Amended and Restated Credit Agreement, dated as of February 13, 2018, among Avis Budget Car Rental, LLC, Avis Budget Holdings, LLC, Avis Budget Group, Inc., the Subsidiary Borrowers from time to time party thereto, JPMorgan Chase Bank, N.A., as Administrative Agent, and the other lenders party thereto (Incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K dated April 27, 2020).

10.45 Amended and Restated Guarantee & Collateral Agreement, dated as of May 3, 2011, among Avis Budget Holdings, LLC, Avis Budget Car Rental, LLC and certain of its Subsidiaries in favor of JPMorgan Chase Bank, N.A., as Administrative Agent (Incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K dated May 6, 2011).

10.45(a) Amendment dated as of March 4, 2013, to the Amended and Restated Credit Agreement and the Amended and Restated Guarantee & Collateral Agreement, each dated as of May 3, 2011, among Avis Budget Holdings, LLC, Avis Budget Car Rental, LLC and certain of its Subsidiaries, JPMorgan Chase Bank, N.A., as Administrative Agent and certain other signatories thereto (Incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K dated March 5, 2013).

10.45(b) Second Amendment to the Amended and Restated Guarantee & Collateral Agreement, dated as of October 3, 2014, among Avis Budget Holdings, LLC, Avis Budget Car Rental, LLC and certain of its Subsidiaries, in favor of JPMorgan Chase Bank, N.A., as Administrative Agent (Incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K dated October 6, 2014).

10.46 Agreement of Resignation, Appointment And Acceptance, dated as of September 5, 2013, by and among Avis Budget Car Rental, LLC, Avis Budget Finance, Inc., The Bank of Nova Scotia Trust Company of New York, as the retiring trustee, and Deutsche Bank Trust Company Americas, as the successor trustee under the indentures described therein (Incorporated by reference to Exhibit 10.4 to the Company’s Quarterly Report on Form 10-Q for the period ended September 30, 2013, dated November 1, 2013).

10.47 Fourth Master Amendment and Restatement Deed, by and among CarFin Finance International Limited, Credit Agricole Corporate And Investment Bank, Deutsche Trustee Company Limited, Credit Agricole Corporate And Investment Bank, the Opcos, Servicers, Lessees and Fleetcos listed therein, Avis Budget Car Rental, LLC, Avis Finance Company Limited, Avis Budget EMEA Limited, the Account Banks listed therein, Deutsche Bank Ag, London Branch, the Senior Noteholders listed therein, Structured Finance Management (Ireland) Limited, CarFin Finance Holdings Limited, Intertrust (Netherlands) B.V.

And Vistra B.V., Credit Agricole Corporate And Investment Bank, FCT CarFin, Caceis Bank France, Caceis Corporate Trust, Deutsche Bank Luxembourg S.A.

and Fiserv Automotive Solutions, Inc., dated December 15, 2014 (Incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K dated December 19, 2014).††

10.48 Seventh Master Amendment and Restatement Deed, by and among CarFin Finance International Limited, Credit Agricole Corporate And Investment Bank, Deutsche Trustee Company Limited, Credit Agricole Corporate And Investment Bank, the Opcos, Servicers, Lessees and Fleetcos listed therein, Avis Budget Car Rental, LLC, Avis Finance Company Limited, Avis Budget EMEA Limited, the Account Banks listed therein, Deutsche Bank Ag, London Branch, the Senior Noteholders and certain other entities named therein, dated January 22, 2016 (Incorporated by reference to Exhibit 10.6 to the Company’s Current Report on Form 8-K dated April 21, 2016).††

10.49 Ninth Master Amendment and Restatement Deed, by and among CarFin Finance International Limited, Credit Agricole Corporate And Investment Bank, Deutsche Trustee Company Limited, Credit Agricole Corporate And Investment Bank, the Opcos, Servicers, Lessees and Fleetcos listed therein, Avis Budget Car Rental, LLC, Avis Finance Company Limited, Avis Budget EMEA Limited, the Account Banks listed therein, Deutsche Bank Ag, London Branch, the Senior Noteholders and certain other entities named therein, dated May 16, 2017 (Incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K dated May 22, 2017).††

10.50 Tenth Master Amendment and Restatement Deed, by and among CarFin Finance International, DAC, Credit Agricole Corporate and Investment Bank, Deutsche Trustee Company Limited, Credit Agricole Corporate and Investment Bank, the Opcos, Servicers, Lessees and FleetCos listed herein.

Avis Budget Car Rental, LLC, Avis Finance Company Limited, Avis Budget EMEA Limited, the Account Banks listed therein, Deutsche Bank Ag.

London Branch, the Senior Noteholders and certain other entities named therein, dated May 30, 2018 (Incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K dated June 5, 2018).††

10.51 Eleventh Master Amendment and Restatement Deed, by and among CarFin Finance International DAC, Credit Agricole Corporate And Investment Bank, Deutsche Trustee Company Limited, Credit Agricole Corporate And Investment Bank, the Opcos, Servicers, Lessees and FleetCos listed therein, Avis Budget Car Rental, LLC, Avis Finance Company Limited, Avis Budget EMEA Limited, the Account Banks listed therein, Deutsche Bank Ag, London Branch, the Senior Noteholders and certain other entities named therein, dated November 3, 2020 (Incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K dated November 9, 2020).††

10.58 Series 2021-1 Supplement dated as of May 18, 2021 , between Avis Budget Rental Car Funding (AESOP) LLC and The Bank of New York Mellon Trust Company, N .A., as trustee and Series 2021-1 Agent (Incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K dated May 21, 2021 ).

10.59 Series 2021-2 Suppleme nt, dated as of November 17, 2021, between Avis Budget Rental Car Funding (AESOP) LLC and The Bank of New York Mellon Trust Com pany, N.A., as trustee and Series 2021-2 Agent (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K dated November 19, 2021 ).

10.60 Sixth Amended and Restated Credit Agreement, dated as of July 9, 2021 , among Avis Budget Holdings, LLC, Avis Budget Car Rental, LLC , Avis Budget Group, Inc., the subsidiary borrowers from time to time party thereto, the financial institutions from time to time party thereto JPMorgan Chase Bank, N.A., as Administrative Agent ( i ncorporated by reference to Exhibit 10.

1 to the Company’s Current Report on Form 8-K dated July 13, 2021 ).

21 Subsidiaries of Registrant.

10 unchanged sentences

101.PRE XBRL Taxonomy Extension Presentation Linkbase.

104 The cover page from the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, formatted as Inline XBRL and contained in Exhibit 101.

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7 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 9A. Controls and Procedures