What changed in this filing

/stocks — the workspaceLOADING

Item 9A. Controls and Procedures

2025-02-14 compared with 2024-02-16 · 494 added, 383 removed, 1477 unchanged (37% of the section changed)

11 unchanged sentences

During the fourth quarter of 2023, there was 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.

During the fourth quarter of 2024, there was 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

27 unchanged sentences

OTHER INFORMATION

During the three months ended December 31, 2023, no director or Section 16 officer of the Company adopted or terminated a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement," as each term is defined in Item 408(a) of Regulation S-K.

During the quarter ended December 31, 2024, no director or Section 16 officer of the Company adopted or terminated a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement," as each term is defined in Item 408(a) of Regulation S-K.

DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS

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Cathleen DeGenova

Vice President and Chief Accounting Officer

Senior Vice President and Chief Accounting Officer

February 14, 2025

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MARTINS Executive Vice President and Chief Financial Officer February 14, 2025

/s/ CATHLEEN DEGENOVA Vice President and Chief Accounting Officer February 16, 2024

/s/ CATHLEEN DEGENOVA Senior Vice President and Chief Accounting Officer February 14, 2025

(Cathleen DeGenova)

/s/ BERNARDO HEES Executive Chairman of the Board of Directors February 16, 2024

(Bernardo Hees)

/s/ JAGDEEP PAHWA Vice Chairman of the Board of Directors February 16, 2024

/s/ JAGDEEP PAHWA Chairman of the Board of Directors February 14, 2025

(Jagdeep Pahwa)

1 unchanged sentence

(Anu Hariharan)

/s/ BERNARDO HEES Director February 14, 2025

(Bernardo Hees)

/s/ LYNN KROMINGA Director February 14, 2025

6 unchanged sentences

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

Consolidated Statements of Operations for the years ended December 31 , 2023, 2022 and 2021

Consolidated Statements of Comprehensive Income for the years ended December 31, 2023, 2022 and 2021

Consolidated Statements of Operations for the Y ears E nded December 31, 2024, 2023 and 2022

Consolidated Statements of Comprehensive Income for the Y ears E nded December 31, 2024, 2023 and 2022

Consolidated Balance Sheets as of December 31, 2024 and 2023

Consolidated Statements of Cash Flows for the years ended December 31, 2023, 2022 and 2021

Consolidated Statements of Stockholders’ Equity for the years ended December 31, 2023, 202 2 and 2021

Consolidated Statements of Cash Flows for the Y ears E nded December 31, 2024, 2023 and 2022

Consolidated Statements of Stockholders’ Equity for the Y ears E nded December 31, 2024, 2023 and 2022

Notes to Consolidated Financial Statements

26 unchanged sentences

The initial cost of the vehicles is recorded net of incentives and allowances from manufacturers.

Rental vehicles acquired by the Company outside of manufacturer repurchase and guaranteed depreciation programs are referred to as risk vehicles and the carrying values of these risk vehicles are depreciated based upon the vehicles’ estimated residual values at their expected dates of disposition.

Rental vehicles acquired by the Company outside of the manufacturer repurchase and guaranteed depreciation programs are referred to as risk vehicles and the carrying values of these risk vehicles are depreciated based upon the vehicles’ estimated residual values at their expected dates of disposition.

The estimation of residual values for risk vehicles requires the Company to make assumptions regarding factors which include, but are not limited to, the anticipated age of the vehicles and market conditions for used vehicles at the time of disposal.

1 unchanged sentence

Any adjustments to depreciation are made prospectively.

Given the volume of risk vehicles in the United States and the significant estimation uncertainty and judgments made by management to calculate the estimated residual values of these risk vehicles, auditing the estimated residual values of United States risk vehicles and related vehicle depreciation expense required extensive audit effort to develop an independent expectation of residual values and depreciation expense, and a high degree of auditor judgment was required when performing audit procedures and evaluating the results of those procedures.

Given the volume of risk vehicles in the United States and the significant estimation uncertainty and judgments made by management to calculate the estimated residual values of these risk vehicles, auditing the estimated residual values of the United States risk vehicles and related vehicle depreciation expense required extensive audit effort to develop an independent expectation of residual values and depreciation expense, and a high degree of auditor judgment was required when performing audit procedures and evaluating the results of those procedures.

The significant estimation uncertainty was primarily due to management’s assumptions regarding the impact of future consumer demand and general economic conditions on expected pricing of used vehicles.

17 unchanged sentences

The required liability is 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.

Given the volume of public liability and property damage claims in the United States and the subjectivity of estimating the related self-insurance reserves for reported claims not yet paid and claims incurred but not yet reported due to uncertain exposure and projected loss development, performing audit procedures to evaluate whether these self-insurance reserves were appropriately recorded as of December 31, 2023 required a significant degree of auditor judgment and an increased extent of effort, including the need to involve our actuarial specialists.

Given the volume of public liability and property damage claims in the United States and the subjectivity of estimating the related self-insurance reserves for reported claims not yet paid and claims incurred but not yet reported due to the uncertain exposure and projected loss development, performing audit procedures to evaluate whether these self-insurance reserves were appropriately recorded as of December 31, 2024 required a significant degree of auditor judgment and an increased extent of effort, including the need to involve our actuarial specialists.

How the Critical Audit Matter Was Addressed in the Audit

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– Evaluated the reasonableness of the assumptions used in management’s estimate by comparing prior-year assumptions of expected development and ultimate loss to actuals incurred during the current year to identify potential bias in the determination of these liabilities.

Impairment of Long-Lived Assets – United States Vehicles – Refer to Notes 2 and 8 to the financial statements

Critical Audit Matter Description

The Company reviews long-lived assets for impairment when events or changes in circumstances indicate the carrying value of these assets may exceed their current fair values.

Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset.

Assets are grouped at the lowest level of identifiable cash flows.

If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized for the amount by which the carrying amount of the asset exceeds the fair value of the assets.

In the current year, the Company changed their fleet strategy for the United States and Canadian vehicles, to accelerate certain fleet rotations and shorten the useful life of the associated vehicles.

As a result, the Company performed a recoverability test by comparing the sum of undiscounted cash flows expected to result from the use and eventual disposition of the impacted vehicles, to their carrying value and concluded, that for certain vehicles, the carrying value exceeded the sum of undiscounted cash flows expected to result from the use and eventual disposition of those vehicles.

For purposes of the recoverability test, the vehicles were aggregated into asset groups based on make, model and year of the vehicles.

The test was performed as of November 30, 2024.

The Company used a market approach to determine the fair value of the impacted vehicles, utilizing prices for similar assets in active markets (Level 2).

During the year ended December 31, 2024, the Company recorded a non-cash impairment charge.

Given the volume of vehicles in the United States and the significant assumptions made by management to evaluate vehicles for impairment, we performed audit procedures to (1) evaluate whether management appropriately identified events or changes in circumstances indicating that the carrying amounts of vehicle assets may not be recoverable;

(2) evaluate management's determination of asset groups at the lowest level of identifiable cash flows;

(3) evaluate management’s recoverability test by comparing the sum of undiscounted cash flows expected to result from the use and eventual disposition of the impacted vehicles to their carrying value and, when applicable, (4) evaluate the fair value estimates for the impacted vehicles.

Those procedures required a high degree of auditor judgment and an increased extent of effort, including the need to involve our fair value specialists and other professionals in our firm with expertise in long-lived asset impairment.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to impairment of long-lived assets of United States vehicles included the following, among others:

• We tested the effectiveness of controls over (1) management’s identification of events or changes in circumstances that indicate that the carrying amount of vehicles may not be recoverable, including management’s review of forecasted future cash flows, and (2) management’s review of the methodology in determining the fair value estimate of vehicles.

• We evaluated whether management appropriately identified events or changes in circumstances that indicated that the carrying amounts of vehicle assets may not be recoverable.

• We evaluated management’s determination of asset groups at the lowest level of identifiable cash flows.

• We tested management’s recoverability test by comparing the sum of undiscounted cash flows expected to result from the use and eventual disposition of the impacted vehicles to their carrying value by performing the following:

– Tested the mathematical accuracy of management’s analysis.

– Compared relevant information to historical data.

– Assessed management’s assumptions used when determining the expected rental revenue, operating expenses and residual values expected at the time of disposition of vehicles as part of their recoverability test.

• We tested the fair value estimates for the impacted vehicles.

• With the assistance of our fair value specialists, we evaluated the reasonableness of the valuation methodology applied and fair value determined for vehicles by testing the methodology applied and measurable inputs used, and the mathematical accuracy of the calculation.

/s/ DELOITTE & TOUCHE LLP

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Early extinguishment of debt 19 5 —

Long-lived asset impairment and other related charges 2,470 — —

Restructuring and other related charges 37 11 19

2 unchanged sentences

Total expenses 14,416 10,094 8,358

Income before income taxes 1,914 3,636 1,708

Provision for income taxes 279 880 425

Net income 1,635 2,756 1,283

Income (loss) before income taxes ( 2,627 ) 1,914 3,636

Provision for (benefit from) income taxes ( 810 ) 279 880

Net income (loss) ( 1,817 ) 1,635 2,756

Net income (loss) attributable to non-controlling interests 4 3 ( 8 )

Net income attributable to Avis Budget Group, Inc.

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

$ ( 1,821 ) $ 1,632 $ 2,764

Earnings per share

Earnings (loss) per share

Basic $ ( 51.23 ) $ 42.57 $ 58.41

6 unchanged sentences

2024 2023 2022

Net income $ 1,635 $ 2,756 $ 1,283

Net income (loss) $ ( 1,817 ) $ 1,635 $ 2,756

Net income (loss) attributable to non-controlling interests 4 3 ( 8 )

Net income attributable to Avis Budget Group, Inc.

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

( 1,821 ) 1,632 2,764

3 unchanged sentences

( 122 ) 27 ( 46 )

Reclassification of currency translation adjustments to earnings — — 11

Cash flow hedges:

1 unchanged sentence

Reclassification of cash flow hedges to earnings, net of tax of $ 7 , $ 5 , and $( 2 ), respectively

( 21 ) ( 13 ) 7

Minimum pension liability adjustment:

1 unchanged sentence

Reclassification of pension and post-retirement benefits to earnings, net of tax of $( 1 ), $( 1 ), and $( 2 ), respectively

Total comprehensive income attributable to Avis Budget Group, Inc.

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

$ ( 1,935 ) $ 1,637 $ 2,796

41 unchanged sentences

Preferred stock, $ 0.01 par value—authorized 10 shares;

no ne issued and outstanding

no ne issued and outstanding, in each period

Common stock, $ 0.01 par value—authorized 250 shares;

issued 137 shares, respectively

issued 137 shares, in each period

Additional paid-in capital 6,620 6,634

1 unchanged sentence

Accumulated other comprehensive loss ( 210 ) ( 96 )

Treasury stock, at cost 102 and 98 shares, respectively

Treasury stock, at cost— 102 shares, in each period

( 10,767 ) ( 10,742 )

11 unchanged sentences

Operating activities

Net income $ 1,635 $ 2,756 $ 1,283

Adjustments to reconcile net income to net cash provided by operating activities:

Net income (loss) $ ( 1,817 ) $ 1,635 $ 2,756

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Vehicle depreciation 2,658 2,228 1,709

1 unchanged sentence

(Gain) loss on sale of vehicles, net 167 ( 656 ) ( 1,019 )

Vehicle related reserves 496 348 234

Non-vehicle related depreciation and amortization 237 216 225

3 unchanged sentences

Early extinguishment of debt costs 21 5 —

Long-lived asset impairment and other related charges 2,470 — —

Net change in assets and liabilities:

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Proceeds received on disposition of vehicles 7,394 8,403 6,606

Investment in debt securities of Avis Budget Rental Car Funding (AESOP)—related party

( 541 ) ( 439 ) ( 367 )

Proceeds from debt securities of Avis Budget Rental Car Funding (AESOP)—related party

Investment in debt securities of Avis Budget Rental Car Funding (AESOP) LLC —related party ( 798 ) ( 541 ) ( 439 )

Proceeds from debt securities of Avis Budget Rental Car Funding (AESOP) LLC —related party 701 306 305

( 2,563 ) ( 7,017 ) ( 4,019 )

13 unchanged sentences

Contributions from non-controlling interests — — 40

Net cash used in financing activities exclusive of vehicle programs ( 1,210 ) ( 2,592 ) ( 1,699 )

Net cash provided by (used) in financing activities exclusive of vehicle programs 532 ( 1,210 ) ( 2,592 )

Vehicle programs:

32 unchanged sentences

Total comprehensive income 1,632 5 1,637 3 1,640

Contributions from non-controlling interests — — 24 — — — — 24 — 24

Net activity related to restricted stock units — — ( 32 ) ( 2 ) — 0.3 3 ( 31 ) ( 31 )

Repurchases of common stock — — — — — ( 16.7 ) ( 3,267 ) ( 3,267 ) — ( 3,267 )

Repurchases of common stock (a)

— — — — — ( 4.3 ) ( 897 ) ( 897 ) ( 897 )

Dividends paid ($ 10.00 per share)

— — — ( 355 ) — — — ( 355 ) ( 355 )

Balance at December 31, 2023 137.1 $ 1 $ 6,634 $ 3,854 $ ( 96 ) ( 101.6 ) $ ( 10,742 ) $ ( 349 ) $ 6 $ ( 343 )

Comprehensive income:

Net income — — — 1,632 — — — 1,632 3 1,635

Other comprehensive income — — — — 5 — — 5 — 5

Total comprehensive income 1,632 5 1,637 3 1,640

Net income (loss) — — — ( 1,821 ) — — — ( 1,821 ) 4 ( 1,817 )

Other comprehensive income (loss) — — — — ( 114 ) — — ( 114 ) — ( 114 )

Total comprehensive income (loss) ( 1,821 ) ( 114 ) ( 1,935 ) 4 ( 1,931 )

Net activity related to restricted stock units — — ( 14 ) ( 4 ) — 0.2 21 3 3

1 unchanged sentence

— — — — — ( 0.6 ) ( 46 ) ( 46 ) ( 46 )

Dividends paid ($ 10.00 per share)

— — — ( 355 ) — — — ( 355 ) — ( 355 )

Balance at December 31, 2024 137.1 $ 1 $ 6,620 $ 2,029 $ ( 210 ) ( 102.0 ) $ ( 10,767 ) $ ( 2,327 ) $ 10 $ ( 2,317 )

1 unchanged sentence

See Notes to Consolidated Financial Statements.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Basis of Presentation

Summary of Significant Accounting Policies

Earnings Per Share

Restructuring and Other Related Charges

Intangible Assets

Vehicle Rental Activities

Other Current Assets

Property and Equipment, net

Accounts Payable and Other Current Liabilities

Long-term Corporate Debt and Borrowing Arrangements

Debt Under Vehicle Programs and Borrowing Arrangements

Commitments and Contingencies

Stockholders' Equity

Related Party Transactions

Stock-Based Compensation

Employee Benefit Plans

Financial Instruments

Segment Information

Subsequent Events

Avis Budget Group, Inc.

28 unchanged sentences

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;

products and services for driving convenience such as fuel service options, roadside safety net, electronic toll collection,

access to satellite radio, mobile WiFi devices, GPS navigation, child safety seat rentals, and rentals of other supplemental items including automobile towing equipment and other moving accessories and supplies.

Other related products and mobility services include sales of collision and loss damage waivers, under which we agree to relieve a customer from financial responsibility arising from vehicle damage incurred during the rental;

additional/supplemental liability insurance or personal accident/effects insurance products which provide

customers with additional protections for personal or third-party losses incurred;

products for driving convenience such as fuel service options, roadside assistance services, electronic toll collection services, access to satellite radio, mobile WiFi devices, GPS navigation and child safety seat rentals;

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

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.

1 unchanged sentence

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).

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 our licensees and are recorded as the licensees’ revenues are earned (over the rental period).

5 unchanged sentences

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 approximately $ 187 million, $ 165 million, and $ 127 million for the years ended December 31, 2023, 2022 and 2021, respectively.

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 $ 246 million, $ 187 million, and $ 165 million for the years ended December 31, 2024, 2023 and 2022, respectively.

The following table presents our revenues disaggregated by geography:

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Budget 4,271 4,478 4,701

Other 751 774 704

Total revenues $ 11,789 $ 12,008 $ 11,994

Other includes Zipcar and other operating brands.

(a) Other includes Zipcar and other operating brands.

Deferred Revenue

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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.

Loyalty points generally expire five years from when they were earned or 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.

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Revenue recognized ( 78 ) ( 52 )

Balance, December 31 $ 67 $ 61

At December 31, 2023 and 2022, $ 20 million and $ 15 million was included in accounts payable and other current liabilities, respectively, and $ 47 million and $ 46 million in other non-current liabilities, respectively.

Balance, December 31 (a)

(a) At December 31, 2024 and 2023, $ 27 million and $ 20 million was included in accounts payable and other current liabilities, respectively, and $ 23 million and $ 47 million in other non-current liabilities, respectively.

Non-current amounts are expected to be recognized as revenue within two to three years .

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Other intangible assets with finite lives are amortized over their estimated useful lives and are evaluated each reporting period to determine if circumstances warrant a revision to these lives.

During our annual impairment assessment performed as of October 1, 2024, we determined that the carrying value of our Zipcar trademark, which is an unamortized intangible asset included within our Americas reportable segment, exceeded its fair value.

We determined the fair value of the Zipcar trademark using the relief-from-royalty method (Level 3), which is a form of the income approach.

This method applies a royalty rate to projected income to quantify the benefit of owning the intangible asset rather than paying a royalty for use of the asset.

The significant assumptions used in the assessment of the fair value of the trademark included future revenues, a discount rate and a royalty rate.

As a result, we recognized an impairment of $ 28 million within long-lived asset impairment and other related charges in the Consolidated Statement of Operations for the year ended December 31, 2024.

There was no impairment to goodwill for the year ended December 31, 2024 and there were no impairments to goodwill or other intangible assets during the years ended December 31, 2023 or 2022.

Impairment of Long-Lived Assets

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.

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.

We review long-lived assets for impairment when events or changes in circumstances indicate the carrying value of these assets may exceed their current fair values.

Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset.

Assets are grouped at the lowest level of identifiable cash flows.

During the fourth quarter of 2024, we changed our fleet strategy, specific to United States and Canadian rental car vehicles, to accelerate certain fleet rotations in order to decrease the age of our fleet for competitive reasons, and accordingly, we shortened the useful life associated with such vehicles.

We considered this change in strategy to be a triggering event that indicated the carrying amount of these assets may not be recoverable.

As a result, we performed a recoverability test by comparing the sum of undiscounted cash flows expected to result from the use and eventual disposition of the impacted vehicles to their carrying value and concluded, that for certain vehicles, the carrying value exceeded the sum of undiscounted cash flows expected to result from the use and eventual disposition of those vehicles.

For purposes of the recoverability test, the vehicles were aggregated into asset groups based on make, model and year of the vehicles.

The test was performed as of November 30, 2024, and we used a market approach to determine the value of the impacted vehicles, utilizing prices for similar assets in active markets (Level 2).

During the year ended December 31, 2024, we recorded a $ 2.3 billion non-cash impairment within long-lived asset impairment and other related charges in the Consolidated Statement of Operations within our Americas reportable segment.

There were no impairments to long-lived assets during the years ended December 31, 2023 or 2022.

In the future, if events or market conditions affect the estimated fair value to the extent that a long-lived asset is impaired, we will adjust the carrying value of these long-lived assets in the period in which the impairment occurs.

Vehicles are stated at cost, net of accumulated depreciation.

7 unchanged sentences

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.

Differences between actual residual values and those estimated result in a gain or loss on disposal and are recorded as part of vehicle depreciation at the time of sale.

Vehicle-related interest expense amounts are net of vehicle-related interest income of $ 12 million, $ 34 million, and $ 1 million for 2024, 2023 and 2022, respectively.

We classify vehicles as held for sale in the period in which they are available for immediate sale in their present condition and the sale is probable.

Vehicles held for sale are separately presented at the lower of the carrying amount or fair value less costs to sell in our Consolidated Balance Sheets and are no longer depreciated.

We reassess their fair value each reporting period until disposed.

As of December 31, 2024, in connection with the change to our fleet strategy described above, we wrote down the carrying value of certain vehicles held for sale within our Americas reportable segment to fair value (Level 2).

For the year ended December 31, 2024, we recorded a charge of $ 180 million, which is included within long-lived asset impairment and other related charges in the Consolidated Statement of Operations.

We expect to complete the sale of these vehicles primarily through our standard disposition

channels during the first quarter of 2025.

There were no similar charges during the years ended December 31, 2023 or 2022.

To the extent there are further changes in market conditions or the performance of our long-lived assets, there is a possibility that we could incur additional related costs in the future.

Advertising Expenses

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

During 2023, 2022 and 2021, advertising costs were approximately $ 86 million, $ 64 million, and $ 81 million, respectively.

In addition, during 2023, 2022 and 2021, digital marketing costs were approximately $ 86 million, $ 71 million, and $ 44 million, respectively.

During 2024, 2023 and 2022, advertising costs were $ 77 million, $ 86 million, and $ 64 million, respectively.

In addition, during 2024, 2023 and 2022, digital marketing costs were $ 90 million, $ 86 million, and $ 71 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.

6 unchanged sentences

Fair Value Measurements

We measure 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 disclose the source for such fair value measurements.

Financial assets and liabilities are classified as follows:

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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 carrying amounts of cash and cash equivalents, available-for-sale securities, receivables, program cash, and accounts payable and other current liabilities approximate fair value due to the short-term maturities of these assets and liabilities.

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).

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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.

For the year ended December 31, 2024, we recorded an unprecedented adjustment to our self-insurance reserves for allocated loss adjustment expense.

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 $ 49 million and $ 53 million as of December 31, 2023 and 2022, respectively, related to workers’ compensation, health and welfare and other employee benefit programs.

The Consolidated Balance Sheets also include liabilities of $ 50 million and $ 49 million as of December 31, 2024 and 2023, 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.

22 unchanged sentences

Transaction-related costs, net are classified separately in the Consolidated Statements of Operations.

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.

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 own operations, 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 for which we have the ability to exercise significant influence, but do not have a controlling interest, 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.

2 unchanged sentences

As of December 31, 2024 and 2023, we had investments with a carrying value of $ 100 million and $ 93 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 2023, 2022 and 2021, the amounts realized from the sale of equity investments and dividend income was $ 12 million, $ 12 million, and $ 10 million, respectively.

Aggregate realized gains and losses on equity method investments and dividend income are recorded within operating expenses on the Consolidated Statements of Operations.

During 2024, 2023 and 2022, we recorded net gains from our equity method investments, including dividend income of $ 23 million, $ 12 million, and $ 12 million, respectively.

See Note 17 – Related Party Transactions for our equity method investment in our former subsidiary.

4 unchanged sentences

During the year ended December 31, 2022, we recorded a gain of $ 2 million within restructuring and other related charges.

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

to sell our operations in the Netherlands.

In March 2022, we completed the sale of our operations in the Netherlands for $ 15 million, subject to working capital adjustments, for the right to operate the Avis and Budget brands.

The United States Virgin Islands operations were reported within our Americas reportable segment.

In March 2022, we completed the sale of our operations in the Netherlands for $ 15 million, for the right to operate the Avis and Budget brands.

During the year ended December 31, 2022, we recorded a loss of $ 7 million, net of impact of foreign currency adjustments, within restructuring and other related charges.

The Netherlands operations are reported within our International reporting segment.

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 .

The Netherlands operations were reported within our International reportable segment.

Variable Interest Entity (“VIE”)

12 unchanged sentences

As of December 31, 2024 and 2023, our nonmarketable equity securities within non-current assets on our Consolidated Balance Sheets were not material and no material adjustments were made to the carrying values of these securities during the years ended December 31, 2024, 2023 or 2022.

Reclassification

We reclassified certain items within operating activities on the Consolidated Statements of Cash Flows for the years ended December 31, 2023 and 2022 to conform to the current year presentation.

These reclassifications had no impact on reported net cash provided by operating activities.

Adoption of New Accounting Pronouncements

Improvements to Reportable Segment Disclosures

On January 1, 2024, as the result of a new accounting pronouncement, we adopted ASU 2023-07, “Improvements to Reportable Segment Disclosures,” which amends Topic 280 primarily through enhanced disclosures about significant segment expenses.

The adoption of this accounting pronouncement has resulted in incremental disclosures within the notes to our Consolidated Financial Statements.

Recently Issued Accounting Pronouncements

Improvements to Income Tax Disclosures

In December 2023, the FASB issued ASU 2023-09, “Improvements to Income Tax Disclosures,” which amends Topic 740 primarily through enhanced disclosures about an entity’s tax risks and tax planning.

The amendments are effective for public business entities in annual periods beginning after December 15, 2024, with early adoption permitted on a prospective or retrospective basis.

ASU 2023-09 will become effective for us on January 1, 2025.

We are currently evaluating the impact of the adoption of this accounting pronouncement on our Consolidated Financial Statements.

Improvements to Reportable Segment Disclosures

In November 2023, the FASB issued ASU 2023-07, “Improvements to Reportable Segment Disclosures,” which amends Topic 280 primarily through enhanced disclosures about significant segment expenses.

The amendments are effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted.

ASU 2023-07 became effective for us on January 1, 2024.

On January 1, 2025, as the result of a new accounting pronouncement, we adopted ASU 2023-09, “Improvements to Income Tax Disclosures,” which amends Topic 740 primarily through enhanced income tax disclosures, improving transparency into the factors affecting income tax expense.

We expect to include certain additional income tax disclosures in the notes to our Consolidated Financial Statements as a result of the adoption of this accounting pronouncement.

Disaggregation of Income Statement Expenses

In November 2024, the FASB issued ASU 2024-03, “Disaggregation of Income Statement Expenses,” which amends Topic 220 primarily through requiring disclosures, in the notes to financial statements, about certain costs and expenses.

The amendments are effective for annual periods beginning after December 15, 2026 and interim periods beginning after December 15, 2027, with early adoption permitted on a prospective or retrospective basis.

ASU 2024-03 becomes effective for us on January 1, 2027.

We are currently evaluating the impact of the adoption of this accounting pronouncement on our Consolidated Financial Statements.

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 became effective for us on January 1, 2023.

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

Reference Rate Reform

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Deferral of the Sunset Date of Topic 848,” to defer the sunset date of ASC 848 from December 31, 2022 to December 31, 2024.

As of December 31, 2023, this guidance had no impact on our Consolidated Financial Statements and we will continue to evaluate this guidance.

As of December 31, 2024, this guidance had no impact on our Consolidated Financial Statements.

The following table presents our lease revenues disaggregated by geography:

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Budget 4,220 4,425 4,650

Other 736 759 684

Total lease revenues $ 11,543 $ 11,821 $ 11,829

Other includes Zipcar and other operating brands.

(a) Other includes Zipcar and other operating brands.

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

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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.

Concession fees other than minimum annual guaranteed amounts are not included in the measurement of operating lease right of use (“ROU”) assets and operating lease liabilities and are recorded as variable lease expense as incurred.

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

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Total vehicle lease expense $ 185 $ 201 $ 170

(a) Primarily included in operating expenses and for the years ended December 31, 2022 and 2021, includes $( 9 ) million and $( 2 ) million of minimum annual guaranteed rent in excess of concession fees as defined in our rental concession agreements, respectively.

(a) Primarily included in operating expenses and for the year ended December 31, 2022, includes $( 9 ) million of minimum annual guaranteed rent in excess of concession fees as defined in our rental concession agreements.

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

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Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share (“EPS”) (shares in millions):

The following table sets forth the computation of basic and diluted earnings (loss) per share (“EPS”) (shares in millions):

Year Ended December 31,

2024 2023 2022

Net income attributable to Avis Budget Group, Inc.

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

for basic and diluted EPS $ ( 1,821 ) $ 1,632 $ 2,764

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Diluted weighted average shares outstanding 35.5 38.8 48.4

Earnings per share:

Earnings (loss) per share

Basic $ ( 51.23 ) $ 42.57 $ 58.41

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Diluted EPS was computed using the treasury stock method for non-vested stock.

In computing diluted loss per share for the year ended December 31, 2024, our number of diluted weighted average shares outstanding excludes the effect of non-vested stock as the effect would have been anti-dilutive.

This occurs when a net loss is reported and the effect of using dilutive shares would be anti-dilutive.

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):

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Restructuring and Other Related Charges

During second quarter 2022, we initiated a restructuring plan to focus on consolidating our global operations by designing new processes and implementing new systems (“Cost Optimization”).

As of December 31, 2023, we formally communicated the termination of employment to approximately 400 employees as part of this process, the majority of which have been terminated.

We expect this initiative to be completed in 2024.

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

In 2024, we initiated a global restructuring plan to further right size our operations (“Global Rightsizing”).

The costs associated with this initiative are primarily related to the operational scaling of processes, locations, and lines of business.

We expect further restructuring expense of approximately $ 70 million related to this initiative to be incurred in 2025.

In 2022, we initiated a restructuring plan to focus on consolidating our global operations by designing new processes and implementing new systems (“Cost Optimization”).

In 2021, we initiated a global restructuring plan to focus on cost discipline by reviewing headcounts, facilities and contractor agreements.

We transformed our business as we exited the COVID-19 crisis by controlling fixed costs and matching variable costs to demand (“T21”).

This initiative is complete.

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”).

This initiative is complete.

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”).

This initiative is complete.

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

This initiative is complete.

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 Total

In 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”).

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

We also initiated a restructuring plan in that same year to drive global efficiency by improving processes and consolidating functions, and to create new objectives and strategies for our truck rental operations in the United States by reducing headcount, large vehicles and rental locations (“T19”).

These initiatives are complete.

The following tables summarize the changes to our restructuring-related liabilities and identify the amounts recorded within our reportable segments for restructuring charges and corresponding payments and utilizations:

Related Facility

Related Other Total

Balance at January 1, 2022 $ 7 $ 2 $ 1 $ 10

Restructuring expense:

T21 26 4 2 32

T19 — — ( 2 ) ( 2 )

Cost Optimization 9 — — 9

Brazil — — 1 1

Restructuring payment/utilization:

Cost Optimization ( 6 ) — ( 1 ) ( 7 )

T21 ( 8 ) ( 1 ) — ( 9 )

2020 Optimization ( 1 ) — — ( 1 )

Brazil — — ( 1 ) ( 1 )

T19 — ( 1 ) — ( 1 )

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Cost Optimization ( 8 ) — ( 2 ) ( 10 )

T21 ( 8 ) ( 1 ) — ( 9 )

2020 Optimization ( 1 ) — — ( 1 )

Brazil — — ( 1 ) ( 1 )

T19 — ( 1 ) — ( 1 )

Balance as of December 31, 2023 $ 4 $ — $ — $ 4

Restructuring expense:

Global Rightsizing (a)

Cost Optimization — — 1 1

Brazil — — 1 1

Restructuring payment/utilization:

Global Rightsizing (a)

( 12 ) — ( 8 ) ( 20 )

Cost Optimization ( 1 ) — ( 3 ) ( 4 )

Brazil — — ( 1 ) ( 1 )

Balance as of December 31, 2024 $ 10 $ — $ 7 $ 17

(a) Other includes the disposition of vehicles.

Americas International Total

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Restructuring expense:

T19 ( 2 ) — ( 2 )

Cost Optimization 2 7 9

Restructuring payment/utilization:

Cost Optimization ( 2 ) ( 5 ) ( 7 )

T21 ( 2 ) ( 7 ) ( 9 )

2020 Optimization — ( 1 ) ( 1 )

Brazil ( 1 ) — ( 1 )

T19 — ( 1 ) ( 1 )

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Cost Optimization ( 6 ) ( 4 ) ( 10 )

T21 ( 2 ) ( 7 ) ( 9 )

2020 Optimization — ( 1 ) ( 1 )

Brazil ( 1 ) — ( 1 )

T19 — ( 1 ) ( 1 )

Balance as of December 31, 2023 2 2 4

Restructuring expense:

Global Rightsizing 19 17 36

Cost Optimization 1 — 1

Restructuring payment/utilization:

Global Rightsizing ( 12 ) ( 8 ) ( 20 )

Cost Optimization ( 1 ) ( 3 ) ( 4 )

Brazil ( 1 ) — ( 1 )

Balance as of December 31, 2024 $ 9 $ 8 $ 17

Other Related Charges

Limited Voluntary Opportunity Plans (“LVOP”)

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, 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 participants have been terminated.

Officer Separation Costs

In April 2022, we announced the departure of Veresh Sita as Executive Vice President and Chief Digital and Innovation Officer effective May 13, 2022.

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Sita’s separation, we recorded other related charges of approximately $ 1 million, inclusive of accelerated stock-based compensation expense, for the year ended December 31, 2022.

In June 2023, we completed the acquisition of a licensee in North America for approximately $ 14 million, plus approximately $ 20 million for acquired fleet.

This investment is 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 this acquisition, approximately $ 14 million was recorded to other intangibles related to license agreements.

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

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

McNicoll Vehicle Hire

In September 2023, we completed the acquisition of McNicoll Vehicle Hire, a vehicle rental company in Scotland specializing in van and car rentals, for approximately $ 17 million, net of acquired cash.

The investment enabled the Company to expand its footprint of vehicle rental services in Scotland.

The excess of the purchase price over preliminary fair value of net assets acquired was allocated to goodwill, which was assigned to the Company’s International reportable segment.

The investment enabled us to expand our footprint of vehicle rental services in Scotland.

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

In connection with this acquisition, approximately $ 10 million was recorded to goodwill, $ 4 million was recorded to trade names, and $ 1 million was recorded to customer relationships.

The trade names and customer relationships will be amortized over a weighted average useful life of approximately 10 years.

The goodwill is not deductible for tax purposes.

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

In October 2023, we completed the acquisition of a licensee in North America for approximately $ 10 million, plus approximately $ 4 million for acquired fleet.

This investment is 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 this acquisition, approximately $ 10 million was recorded to other intangibles related to license agreements.

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

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

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

The goodwill was not deductible for tax purposes.

In 2024, we finalized our accounting for this acquisition.

As a result, we recorded an additional $ 2 million to the goodwill connected to this acquisition during the year ended December 31, 2024, which represents the additional excess of the purchase price over the fair value of the identifiable net assets acquired.

In June 2023, we completed the acquisition of a licensee in North America for approximately $ 14 million, plus approximately $ 20 million for acquired fleet.

In October 2023, we completed the acquisition of a second licensee in North America for approximately $ 10 million, plus approximately $ 4 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 license agreements.

The licens e agreements are being amortized over a weighted average useful life of approximately one year .

Differences between the preliminary allocation of purchase price and the final allocation were not material.

The acquired fleet for each acquisition was financed under our existing financing arrangements.

In connection with these acquisitions in June 2023 and October 2023, approximately $ 14 million and $ 10 million, respectively, was recorded to other intangibles related to license agreements, which are being amortized over weighted average useful lives of approximately five years and three years , respectively.

Differences between the preliminary allocation of purchase prices and the final allocations for these acquisitions were not material.

Intangible Assets

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52 47 5 56 46 10

$ 625 $ 501 $ 124 $ 585 $ 463 $ 122

Total $ 602 $ 512 $ 90 $ 625 $ 501 $ 124

Unamortized Intangible Assets

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During 2024, we recorded an impairment related to our unamortized Zipcar trademark of $ 28 million.

See Note 2 – Summary of Significant Accounting Policies.

Amortization expense relating to all intangible assets was as follows:

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Total $ 30 $ 29 $ 44

Based on our amortizable intangible assets at December 31, 2023, we expect related amortization expens e of approximately $ 29 million for 2024, $ 23 million for 2025, $ 21 million for 2026, $ 15 million for 2027 and $ 11 million for 2028 excluding effects of currency exchange rates.

Based on our amortizable intangible assets at December 31, 2024, we expect amortization expens e of approximately $ 22 million for 2025, $ 21 million for 2026, $ 15 million for 2027, $ 9 million for 2028 and $ 7 million for 2029 excluding effects of currency exchange rates.

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

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550 520 1,070

Acquisitions — 10 10

Currency translation adjustments and other 1 18 19

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As of December 31,

Rental vehicles $ 23,114 $ 17,819

Rental vehicles (a)

$ 20,094 $ 23,114

Accumulated depreciation ( 3,143 ) ( 2,639 )

16,951 20,475

Vehicles held for sale 734 317

Vehicles, net investment in lease (a)

Vehicles held for sale (a)

Vehicles, net investment in lease (b)

Vehicles, net $ 17,619 $ 21,240

(a) See Note 17 – Related Party Transactions.

(a) For the year ended December 31, 2024, reflects long-lived asset impairment and other related charges, which reduced the carrying value of our rental vehicles and vehicles held for sale to fair value.

See Note 2 – Summary of Significant Accounting Policies.

(b) See Note 17 – Related Party Transactions.

The components of vehicle depreciation and lease charges, net are summarized below:

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Vehicle depreciation and lease charges, net $ 2,976 $ 1,739 $ 828

At December 31, 2023, 2022 and 2021, we had payables related to vehicle purchases included in liabilities under vehicle programs - other o f $ 287 million, $ 265 million , and $ 142 million , respectively, and receivables related to vehicle sales included in assets under vehicle programs - receivables from vehicle manufacturers and other of $ 237 million, $ 212 million , and $ 134 million, respectively.

The provision for income taxes consists of the following:

At December 31, 2024, 2023 and 2022, we had payables related to vehicle purchases included in liabilities under vehicle programs - other of $ 203 million, $ 287 million, and $ 265 million, respectively, and receivables related to vehicle sales included in assets under vehicle programs - receivables from vehicle manufacturers and other of $ 287 million, $ 237 million, and $ 212 million, respectively.

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

Year Ended December 31,

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Deferred income tax provision ( 905 ) 191 682

Provision for income taxes $ 279 $ 880 $ 425

Income before income taxes is comprised of the following:

Provision for (benefit from) income taxes $ ( 810 ) $ 279 $ 880

Income (loss) before income taxes is comprised of the following:

Year Ended December 31,

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Foreign 15 496 522

Income before income taxes

Income (loss) before income taxes

$ ( 2,627 ) $ 1,914 $ 3,636

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Long-term operating lease liabilities 807 703

Accrued liabilities and deferred revenue 169 231

Tax credits 405 323

Deferred interest expense (a)

Accrued liabilities and deferred revenue 157 169

Depreciation and amortization 24 22

Provision for doubtful accounts 19 18

Other 213 167

Valuation allowance (a)

Valuation allowance (b)

( 83 ) ( 103 )

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Deferred income tax assets, net $ 1,786 $ 1,868

(a) T he valuation allowance at December 31, 2023 relates to tax loss carryforwards and certain deferred tax assets of $ 100 million and $ 3 million, respectively.

(a) For the year ended December 31, 2023, we reclassified $ 179 million of deferred interest expense to conform to the current year presentation.

This reclassification had no impact to our reported deferred income tax assets.

(b) The valuation allowance at December 31, 2024 relates to tax loss carryforwards and certain deferred tax assets of $ 80 million and $ 3 million, respectively.

The valuation allowance at December 31, 2023 relates to tax loss carryforwards and certain deferred tax assets of $ 100 million and $ 3 million, respectively.

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federal net operating loss carryforwards of approximately $ 3.0 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.

The net operating loss carryforwards have an indefinite utilization period pursuant to the Tax Act.

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

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

At December 31, 2023, we had foreign net operating loss carryforwards of approximately $ 1.0 billion, the majority of which has an indefinite utilization period.

At December 31,

2024, we had foreign net operating loss carryforwards of approximately $ 890 million, the majority of which has an indefinite utilization period.

At December 31, 2024, we had undistributed earnings of certain foreign subsidiaries of approximately $ 1.6 billion that we have indefinitely reinvested, and on which we have not recognized deferred taxes.

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federal statutory rate 21.0 % 21.0 % 21.0 %

Adjustments to reconcile to the effective rate:

Adjustments to reconcile to our effective rate:

State and local income taxes, net of federal tax benefits 6.0 4.0 3.9

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This reclassification had no impact to our reported effective income tax rate.

The following is a tabular reconciliation of the gross amount of unrecognized tax benefits for the year:

The Organisation for Economic Cooperation and Development (“OECD”) published a proposal for the establishment of a global minimum tax rate of 15% (the “Pillar Two rule”), effective for fiscal 2024.

We are closely monitoring developments of the Pillar Two rule as the OECD continues to refine its technical guidance and member states implement tax laws and regulations based on Pillar Two proposals.

Pillar Two did not have a material impact on our Consolidated Financial Statements for 2024.

The following is a reconciliation of the gross amount of unrecognized tax benefits:

2024 2023 2022

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Additions for tax positions related to current year 4 5 4

Additions for tax positions for prior years 5 3 3

Reductions for tax positions for prior years — ( 5 ) ( 3 )

Additions for tax positions related to prior years — 5 3

Reductions for tax positions related to prior years ( 2 ) — ( 5 )

Settlements — — ( 5 )

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Balance, December 31 $ 58 $ 63 $ 53

We do not anticipate that total unrecognized tax benefits will change significantly in 2024.

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

We do not anticipate the gross amount of unrecognized tax benefits to change significantly in 2025.

We are subject to taxation in the U.S.

and various foreign jurisdictions.

As of December 31, 2024, the 2007 through 2023 tax years generally remain subject to examination by the federal tax authorities.

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In significant foreign jurisdictions, the 2012 through 2023 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, 2023, 2022 and 2021, if recognized, would affect our provision for income taxes.

Substantially all of the gross amount of unrecognized tax benefits at December 31, 2024, 2023 and 2022, if recognized, would affect our provision for (benefit from) income taxes.

As of December 31, 2024, our unrecognized tax benefits were offset by tax loss carryforwards and other deferred tax assets in the amount of $ 27 million.

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(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, 2023, $ 17 million of unrecognized tax benefits in current income taxes payable are related to tax contingencies which we believe we are entitled to indemnification.

As of December 31, 2022, $ 13 million unrecognized tax benefits in non-current income taxes payable are related to tax contingencies for which we believe we are 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, 2023, 2022 and 2021, were not significant and were recognized as a component of the provision for income taxes .

As of December 31, 2024 and 2023, liabilities for unrecognized tax benefits associated with these tax contingencies are included in current income taxes payable.

(b) We recognize potential interest expense 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, 2024, 2023 and 2022, were not significant and were recognized in the provision for (benefit from) income taxes .

Other Current Assets

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Depreciation and amortization expense relating to property and equipment during 2024, 2023 and 2022 was $ 207 million, $ 187 million, and $ 181 million, respectively (including $ 102 million, $ 101 million, and $ 115 million, respectively, of amortization expense relating to capitalized software).

At December 31, 2023, we had payables related to property and equipment included in accounts payable and other current liabilities and in other non-current liabilities of $ 18 million and $ 6 million, respectively.

At December 31, 2024, we had payables related to property and equipment included in accounts payable and other current liabilities of $ 10 million.

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Accounts payable 450 487

Accrued advertising and marketing 276 268

Accrued sales and use taxes 305 251

Accrued payroll and related 188 205

Deferred lease revenues – current 168 188

Accrued advertising and marketing 258 276

Public liability and property damage insurance liabilities – current 245 181

Other 500 445

Accrued interest (a)

Deferred lease revenues – current 149 168

Accrued payroll and related 126 188

Accounts payable and other current liabilities $ 2,700 $ 2,627

(a) For the year ended December 31, 2023, we reclassified $ 141 million of accrued interest to conform to the current year presentation.

This reclassification had no impact to accounts payable and other current liabilities.

Long-term Corporate Debt and Borrowing Arrangements

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4.750 % euro-denominated Senior Notes

November 2024 $ — $ 321

4.500 % euro-denominated Senior Notes

May 2025 — 268

4.750 % euro-denominated Senior Notes

January 2026 — 386

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April 2028 500 500

7.000 % euro-denominated Senior Notes

February 2029 621 —

5.375 % Senior Notes

March 2029 600 600

8.250 % Senior Notes

January 2030 700 —

7.250 % euro-denominated Senior Notes

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Long-term debt $ 5,373 $ 4,791

(a) The floating rate term loans are part of our senior revolving credit facility, which is 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.

(a) The floating rate term loan due August 2027 is, and the floating rate term loan due March 2029 was, part of our senior revolving credit facility, which is 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.

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

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As of December 31, 2024, the loan bears interest at one-month Secured Overnight Financing Rate (“ SOFR ”) plus 1.75 %, for an aggregate rate of 6.22 %.

however, we entered into an interest rate swap to hedge $ 750 million of our interest rate exposure related to the floating rate term loan at an aggregate rate of 3.26 %.

We have entered into an interest rate swap to hedge $ 750 million of our interest rate exposure related to the floating rate term loan at an aggregate rate of 3.26 %.

Floating Rate Term Loan due 2029.

In March 2022, we entered into a $ 750 million Floating Rate Term Loan due March 2029, at a price of 97 % of the aggregate principal amount, with interest paid monthly.

In December 2023, we redeemed approximately $ 200 million of our outstanding balance using the proceeds from the issuance of our 8.000 % Senior Notes due February 2031.

The Term Loan bears interest at one-month SOFR plus 3.00 % for an aggregate rate of 8.46 %.

4.125 % euro-denominated Senior Notes due 2024.

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 6.000 % euro-denominated Senior Notes due 2021.

We redeemed these notes in September 2023 using the proceeds from our 7.250 % euro-denominated Senior Notes due July 2030.

4.500 % euro-denominated Senior Notes due 2025.

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.

We redeemed these notes in November 2023 using the proceeds from our 8.000 % Senior Notes due February 2031.

In December 2023, we repaid approximately $ 200 million of our outstanding balance using the proceeds from the issuance of our 8.000 % Senior Notes due February 2031.

In October 2024, we fully repaid the outstanding borrowings under our floating rate term loan due 2029 using the proceeds from the issuance of our 8.250 % Senior Notes due January 2030.

4.750 % euro-denominated Senior Notes due 2026.

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.

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

Net proceeds from the offering were used to redeem our 5.125 % Senior Notes due June 2022 for $ 410 million plus accrued interest.

In April 2024, we redeemed these notes using the proceeds from our 7.000 % euro-denominated Senior Notes due February 2029.

5.750 % Senior Notes due 2027.

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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.

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

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.

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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.

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

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.

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We have the right to redeem these notes in whole or in part at any time on or after July 2026 at a specified redemption price plus accrued interest.

In September 2023, we used net proceeds from the offering primarily to redeem all of the € 300 million of our outstanding 4.125 % euro-denominated Senior Notes due 2024 plus accrued interest.

Net proceeds from the offering were used primarily to redeem all of the € 300 million of our outstanding 4.125 % euro-denominated Senior Notes due 2024 plus accrued interest.

In May 2024, we issued € 200 million of additional 7.250 % euro-denominated Senior Notes due July 2030, at 100.25 % of face value, under the indenture governing our existing 7.250 % euro-denominated Senior Notes.

Net proceeds from this offering were used for general corporate purposes.

8.000 % Senior Notes due February 2031 .

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Net proceeds were used to fully redeem our 4.500 % euro-denominated Senior Notes due 2025 and a portion of our outstanding balance on our Term Loan due 2029, with the remainder being used for general corporate purposes.

In connection with the debt amendments and repayments for the years ended December 31, 2023 and 2021, we record ed $ 5 million and $ 136 million in early extinguishment of debt costs, respectively.

The 5.750 % Senior Notes, the 4.750 % Senior Notes, the 5.375 % Senior Notes and the 8.000 % 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 and 4.500 % euro-denominated Senior Notes were, and the 4.750 % euro-denominated Senior Notes and the 7.250 % euro-denominated Senior Notes are, unsecured obligations of our Avis Budget Finance plc subsidiary, and are (or were) guaranteed on a senior basis by us and certain of our domestic subsidiaries and rank (or ranked) equally with all of our existing senior unsecured debt.

7.000 % euro-denominated Senior Notes due February 2029.

In February 2024, we issued € 600 million of 7.000 % euro-denominated Senior Notes due February 2029, at par, with interest payable semi-annually.

We have the right to redeem these notes in whole or in part at any time prior to February 28, 2026 at their principal amount plus accrued interest and a make-whole premium, or at any time on or after February 28, 2026 at a specified redemption price plus accrued interest.

Net proceeds from the offering were used primarily to redeem all of our outstanding 4.750 % euro-denominated Senior Notes due January 2026 plus accrued interest, with the remainder being used for general corporate purposes.

8.250 % Senior Notes due January 2030.

In September 2024, we issued $ 700 million of 8.250 % Senior Notes due January 2030, at par, with interest payable semi-annually.

We have the right to redeem these notes in whole or in part, at any time prior to September 15, 2026 at the principal amount plus accrued interest and a make-whole premium, or at any time on or after September 15, 2026 at a specified redemption price plus accrued interest.

Net proceeds from the offering were used to repay the outstanding borrowings under our floating rate term loan due 2029, with the remainder being used to repay maturing vehicle-backed debt and for general corporate purposes.

In connection with the debt amendments and repayments for the years ended December 31, 2024 and 2023, we record ed $ 19 million and $ 5 million, respectively, in early extinguishment of debt costs.

The 5.750 % Senior Notes, the 4.750 % Senior Notes, the 5.375 % Senior Notes, the 8.000 % Senior Notes and the 8.250 % 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 4.750 % euro-denominated Senior Notes were, and the 7.250 % euro-denominated Senior Notes and the 7.000 % euro-denominated Senior Notes are, unsecured obligations of our Avis Budget Finance plc subsidiary, and are (or were) guaranteed on a senior basis by us and certain of our domestic subsidiaries and rank (or ranked) equally with all of our existing senior unsecured debt.

Debt Maturities

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(a) The senior revolving credit facility bears interest at one-month SOFR plus 2.00 % 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 December 2023, we amended our senior revolving credit facility and extended its maturity term to December 2028.

Uncommitted Standby Letter of Credit Facilities.

We have other uncommitted standby letter of credit facilities (“SBLC facilities”) with an additional letter of credit capacity of up to $ 455 million.

As of December 31, 2024, letters of credit totaling $ 400 million have been issued on our SBLC facilities, which results in a remaining available capacity of approximately $ 55 million.

Debt Covenants

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As of December 31,

Americas – Debt due to Avis Budget Rental Car Funding $ 15,502 $ 11,322

Americas – Debt due to Avis Budget Rental Car Funding (a)

$ 14,143 $ 15,502

Americas – Debt borrowings 1,160 1,075

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International – Finance leases 143 172

Deferred financing fees (a)

Deferred financing fees (b)

( 77 ) ( 70 )

Total $ 17,536 $ 18,937

(a) Deferred financing fees related to Debt due to Avis Budget Rental Car Funding as of December 31, 2023 and 2022 were $ 61 million and $ 47 million, respectively.

(a) Includes $ 751 million and $ 841 million of Class R notes as of December 31, 2024 and December 31, 2023, respectively, which are held by us.

(b) Deferred financing fees related to Debt due to Avis Budget Rental Car Funding as of December 31, 2024 and 2023 were $ 60 million and $ 61 million, respectively.

Debt due to Avis Budget Rental Car Funding .

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AESOP Leasing’s vehicles and related assets, which as of December 31, 2024, appro xim ate $ 17 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 our Consolidated Balance Sheets within Assets under vehicle programs and Liabilities under vehicle programs, respectively.

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.

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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.

The following table provides a summary of debt issued by AESOP during the years ended December 31, 2023 and 2022:

The following table provides a summary of debt issued by Avis Budget Rental Car Funding during the years ended December 31, 2024 and 2023:

Issuance Date Maturity Date Weighted Average

Interest Rate Amount

April 2022 August 2027 3.96 % $ 660

May 2022 March 2025 5.43 % 87

May 2022 March 2023 4.56 % 68

May 2022 September 2023 5.25 % 55

July 2022 February 2026 4.81 % 389

July 2022 February 2028 4.99 % 374

November 2022 April 2026 6.25 % 500

January 2024 June 2029 5.51 % $ 1,200

February 2024 April 2026 6.24 % 53

February 2024 April 2028 6.23 % 52

February 2024 October 2026 6.18 % 37

March 2024 October 2027 5.26 % 400

March 2024 December 2029 5.35 % 700

December 2024 (a)

February 2026 9.56 % 88

December 2024 (a)

April 2026 9.56 % 75

December 2024 (a)

October 2026 9.61 % 53

December 2024 (a)

February 2027 9.65 % 61

December 2024 (a)

April 2027 9.66 % 65

December 2024 (a)

October 2027 9.67 % 55

6.04 % $ 2,839

January 2023 April 2028 5.36 % $ 500

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September 2023 February 2029 6.21 % 700

5.81 % $ 3,852

(a) During December 2024, Avis Budget Rental Car Funding issued additional notes under several previously outstanding series of debt.

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.

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These debt borrowings represent a mix of fixed and floating rate debt and had a weighted average interest rate of 5.78 % and 5.77 % as of December 31, 2024 and 2023 respectively.

We entered into a repurchase agreement (the “Repurchase Facility”) in September 2024, whereby we may sell our Class D notes issued by Avis Budget Rental Car Funding to the Repurchase Facility counterparty and repurchase such notes.

Transactions under the Repurchase Facility have a 180 -day tenor.

As of December 31, 2024, $ 116 million was outstanding under the Repurchase Facility, which bears interest at a rate of 6.64 %.

As of December 31, 2024, we had $ 195 million of securities pledged as collateral for the Repurchase Facility, included within investment in Avis Budget Rental Car Funding (AESOP) LLC—related party on our Consolidated Balance Sheets.

International

Debt borrowings .

In EMEA we operate a € 1.7 billion European rental fleet securitization program, with maturity in 2024, which is used to finance fleet purchases for certain of our European operations.

In EMEA we operate a European rental fleet securitization program which is used to finance fleet purchases for certain of our European operations.

In February 2024, we amended our European rental fleet securitization program to increase its capacity from € 1.7 billion to € 1.9 billion, to add £ 200 million to our capacity within the program, and to extend the maturity of the program from 2024 to 2026.

The International borrowings primarily represent floating rate notes and had a weighted average interest rate of 5.07 % and 5.51 % as of December 31, 2024 and 2023, respectively.

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(d) Includes $ 0.1 billion of bank and bank-sponsored facilities.

(e) Includes $ 0.1 billion of bank and bank-sponsored facilities.

Committed Credit Facilities And Available Funding Arrangements

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International – Finance leases 242 143 99

Other 55 55 —

Total $ 20,425 $ 17,613 $ 2,812

(a) Capacity is subject to maintaining sufficient assets to collateralize debt.

The total capacity for Americas — Debt due to Avis Budget Rental Car Funding includes increases from an amendment and renewal of our asset-backed variable funding financing facilities during March 2023 and was most recently amended during January 2024.

The total capacity for Americas — Debt due to Avis Budget Rental Car Funding includes increases from amendments of our asset-backed variable funding financing facilities, which were most recently amended and extended in December 2024.

(b) The outstanding debt is collateralized by vehicles and related assets of $ 14 billion for Americas - Debt due to Avis Budget Rental Car Funding;

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have assumed 37.5 % of the potential tax liability in this matter, respectively.

We have filed a petition for rehearing and intend to vigorously pursue this matter.

We filed a petition for rehearing, which was denied in April 2024, and the tax assessment is expected to become payable, even if judicial relief is sought.

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

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The plaintiffs seek damages in connection with claims relating to alleged misrepresentations and omissions concerning charging customers for traffic infractions and related administrative fees.

On October 10, 2023, plaintiffs’ motion for class certification was denied as to their proposed nationwide class and granted as to a subclass, created at the Court’s discretion, of Avis Preferred and Budget Fastbreak members.

In October 2023, plaintiffs’ motion for class certification was denied as to their proposed nationwide class and granted as to a subclass, created at the Court’s discretion, of Avis Preferred and Budget Fastbreak members.

We have been named as a defendant in other purported consumer class action lawsuits, including two class actions filed against us in New Jersey, one seeking damages in connection with a breach of contract claim and another related to ancillary charges at our Payless subsidiary.

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Edwards’ death and seeks compensatory and punitive damages in an unspecified amount exceeding $ 1 million.

The court has set a trial date in November 2024 for this lawsuit.

The court has set a trial date in May 2025 for this lawsuit.

Given the early stages of the legal proceedings, it is not possible to predict the outcome of the claim.

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Commitments to Purchase Vehicles

We maintain agreements with vehicle manufacturers under which we have agreed to purchase approximately $ 6.8 billion of vehicles from manufacturers over the next 12 months, which is consistent with December 31, 2022, 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 $ 6.3 billion of vehicles from manufacturers over the next 12 months, a $ 0.5 billion decrease compared to December 31, 2023, 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.

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

The Consolidated Balance Sheets include a liability for asset retirement obligations of approximately $ 27 million and $ 26 million at December 31, 2023 and 2022, respectively.

The Consolidated Balance Sheets include liabilities for asset retirement obligations of $ 25 million and $ 27 million at December 31, 2024 and 2023, respectively.

Standard Guarantees/Indemnifications

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Cash Dividend Payments

In December 2023, we paid a special cash dividend of $ 10.00 per share to all holders of our common stock as of December 15, 2023, totaling approximately $ 355 million.

During 2022 and 2021, we did no t declare or

pay any cash dividends.

During 2024 and 2022, we did no t declare or pay any cash dividends.

In December 2023, we paid a special cash dividend of $ 10.00 per share to all holders of our common stock as of December 15, 2023, totaling $ 355 million .

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

Our Board of Directors authorized the repurchase of up to approximately $ 8.1 billion of our common stock under a plan originally approved in 2013 and subsequently expanded most recently in February 2023 (the “Stock Repurchase Program”).

During 2023, 2022 and 2021, we repurchased approximately 35.4 million shares of common stock at a cost of approximately $ 5.6 billion (excluding excise taxes due for 2023 repurchases under the Inflation Reduction Act of 2022) under the program.

As of December 31, 2023, approximately $ 802 million of authorization remained available to repurchase common stock under this plan.

Our Board of Directors has authorized the repurchase of up to approximately $ 8.1 billion of our common stock under a plan originally approved in 2013 and subsequently expanded most recently in February 2023 (the “Stock Repurchase Program”).

During 2024, 2023 and 2022, we repurchased 21.6 million shares of common stock under the Stock Repurchase Program at a cost of approximately $ 4.2 billion (excluding excise taxes due for 2024 and 2023 repurchases under the Inflation Reduction Act of 2022).

As of December 31, 2024, approximately $ 757 million of authorization remained available to repurchase common stock under the Stock Repurchase Program.

Accumulated Other Comprehensive Income (Loss)

The components of accumulated other comprehensive income (loss) are as follows:

The components of accumulated other comprehensive income (loss) were as follows:

Currency Translation

Adjustments (a)

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

Adjustments Net Unrealized Gains (Losses) on Cash Flow Hedges (a)

Minimum Pension Liability

Adjustment (c)

Adjustment (b)

Accumulated Other Comprehensive Income (Loss)

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Other comprehensive income (loss) before reclassifications ( 46 ) 57 11 22

Amounts reclassified from accumulated other comprehensive income (loss) 11 14 7 32

Gross (gains) losses reclassified 9 5 14

Tax on (gains) losses reclassified ( 2 ) ( 2 ) ( 4 )

(Gains) losses reclassified from accumulated other comprehensive income (loss), net of tax — 7 3 10

Net current-period other comprehensive income (loss) ( 46 ) 64 14 32

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Other comprehensive income (loss) before reclassifications 27 5 ( 18 ) 14

Amounts reclassified from accumulated other comprehensive income (loss) — 7 3 10

Gross (gains) losses reclassified ( 18 ) 5 ( 13 )

Tax on (gains) losses reclassified 5 ( 1 ) 4

(Gains) losses reclassified from accumulated other comprehensive income (loss), net of tax — ( 13 ) 4 ( 9 )

Net current-period other comprehensive income (loss) 27 ( 8 ) ( 14 ) 5

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Other comprehensive income (loss) before reclassifications ( 122 ) 15 10 ( 97 )

Amounts reclassified from accumulated other comprehensive income (loss) — ( 13 ) 4 ( 9 )

Gross (gains) losses reclassified ( 28 ) 5 ( 23 )

Tax on (gains) losses reclassified 7 ( 1 ) 6

(Gains) losses reclassified from accumulated other comprehensive income (loss), net of tax — ( 21 ) 4 ( 17 )

Net current-period other comprehensive income (loss) ( 122 ) ( 6 ) 14 ( 114 )

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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) and include a $ 148 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 year ended December 31, 2021 the amounts were reclassified from accumulated other comprehensive income (loss) into restructuring and other related charges.

(b) For the years ended December 31, 2023, 2022 and 2021, the amounts reclassified from accumulated other comprehensive income (loss) into corporate interest expense were income of $ 18 million ($ 13 million, net of tax), losses of $ 9 million ($ 7 million, net of tax) and losses of $ 17 million ($ 12 million, net of tax), respectively.

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

(c) For the years ended December 31, 2023, 2022 and 2021, amounts reclassified from accumulated other comprehensive income (loss) into selling, general and administrative expenses were losses of $ 5 million ($ 4 million, net of tax), $ 5 million ($ 3 million, net of tax) and $ 9 million ($ 7 million, net of tax), respectively.

(a) Amounts reclassified to interest expense.

(b) Amounts reclassified to selling, general and administrative expenses.

Related Party Transactions

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

On September 1, 2022, through the issuance of Class B Preferred Voting Membership Interests, SRS Mobility Ventures, LLC increased their ownership in this subsidiary to 51 % at a fair value of $ 62 million.

As a result, we deconsolidated our former subsidiary, Avis Mobility Ventures LLC (“AMV”), from our financial

statements and began to report our proportional share of the former subsidiary’s income or loss within other (income) expense, net in our Consolidated Statements of Operations as we do not have the ability to direct the significant activities of the former subsidiary and are therefore no longer primary beneficiary of the VIE.

In August and October 2023, SRS made capital contributions to AMV, increasing their ownership to approximately 65 %.

On September 1, 2022, through the issuance of Class B Preferred Voting Membership Interests, SRS Mobility Ventures, LLC increased their ownership in this subsidiary to 51 % at fair value of $ 62 million.

In accordance with ASC Topic 810-10-40, we must deconsolidate a subsidiary as of the date we cease to have a controlling interest in that subsidiary and recognize the gain or loss in net income at that time.

The fair value of our retained investment was determined utilizing a discounted cash flow methodology based on various assumptions, including projections of future cash flows, which include forecast of future revenue and EBITDA.

Upon deconsolidation, our former subsidiary had a net asset carrying amount of $ 49 million resulting in a gain of $ 10 million, which was reported within other (income) expense, net during the year ended December 31, 2022.

As a result, we deconsolidated our former subsidiary, Avis Mobility Ventures LLC (“AMV”), from our financial statements and began to report our proportional share of the former subsidiary’s income or loss within other (income) expense, net in our Consolidated Statements of Operations as we no longer had the ability to direct the significant activities of the former subsidiary and were no longer primary beneficiary of the VIE.

Upon deconsolidation in 2022, our former subsidiary had a net asset carrying amount of $ 49 million and we recorded a gain within other (income) expense, net.

In August and October 2023, SRS Mobility Ventures, LLC made capital contributions to AMV, increasing their ownership to approximately 65 %.

In June 2024, SRS Mobility Ventures, LLC made a capital contribution of approximately $ 22 million to AMV, and we simultaneously settled approximately $ 12 million in receivables from AMV related to services we provided.

SRS Mobility Ventures, LLC’s ownership percentage remained at approximately 65 % following these transactions.

We continue to provide vehicles, related fleet services, and certain administrative services to AMV to support their operations.

For the years ended December 31, 2023 and 2022, we recorded $ 22 million and $ 7 million of related income within other (income) expense, net, respectively.

For the years ended December 31, 2023 and 2022, we recorded losses of $ 25 million and $ 10 million within other (income) expense, net, related to our equity method investment, respectively.

As of December 31, 2023 and 2022, receivables from AMV related to these services were $ 2 million and $ 6 million, respectively, and our net investment in vehicle finance lease with AMV, which is included in vehicles, net, was $ 31 million and $ 36 million, respectively.

The carrying value of our equity investment in AMV as of December 31, 2023 and 2022 was approximately $ 24 million and $ 49 million, respectively, which is included in other non-current assets.

The following table provides amounts reported within our Consolidated Balance Sheets related to our equity method investment in AMV and these services.

As of December 31,

Receivables from AMV (a)

Equity method investment in AMV (b)

Vehicles, net investment in lease with AMV (c)

(a) Included within other current assets.

(b) Included within other non-current assets.

See Note 8 – Vehicle Rental Activities.

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

Year Ended December 31,

2024 2023 2022

(Income) expense for services to AMV, net $ 2 $ ( 22 ) $ ( 7 )

(Income) loss on equity method investment in AMV, net 7 25 10

(Gain) loss on deconsolidation of former subsidiary — — ( 10 )

Other (income) expense, net $ 9 $ 3 $ ( 7 )

Stock-Based Compensation

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 3.9 million shares available as of December 31, 2023.

The maximum number of shares reserved for grant of awards under the plan is 22.5 million , with 3.6 million shares available as of December 31, 2024.

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.

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

Stock Unit Awards

Stock unit awards entitle the holder to receive shares of common stock upon vesting on a one-to-one basis.

Certain performance-based RSUs vest based upon the level of performance attained, but vesting can increase (typically by up to 20 %) if certain relative total shareholder return goals are achieved.

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

Stock unit awards entitle the holder to receive shares of common stock upon vesting on a one-to-one basis, and certain performance-based RSUs vest based upon the level of performance attained.

As part of our declaration and payment of a special cash dividend in December 2023, we granted additional RSUs to our award holders with unvested shares as a dividend equivalent, which has been deferred until, and will not be paid unless, the shares of stock underlying the award vest.

In 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, 2023 and 2022, we did not issue any stock unit awards containing a market condition.

Expected volatility of stock price 91 %

Risk-free interest rate 0.18 %

Valuation period 3 years

Dividend yield — %

Annual activity related to stock units consisted of (in thousands of shares):

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306 $ 143.25 1.3 $ 25

Performance-based and market-based RSUs

Performance-based RSUs

Outstanding at January 1, 2024

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Outstanding at December 31, 2024

315 $ 159.62 1.4 $ 25

Outstanding and expected to vest at December 31, 2024 (c)

64 $ 192.77 1.4 $ 5

(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 and market-based RSUs granted in 2022 was $ 172.34 and $ 193.48 , respectively, and the weighted-average fair value of time-based RSUs and performance-based RSUs granted in 2021 was $ 65.23 and $ 62.27 , respectively.

(b) The total fair value of RSUs vested during 2023, 2022 and 2021 was $ 21 million, $ 22 million and $ 17 million, respectively.

(c) Aggregate unrecognized compensation expense related to time-based RSUs and performance-based and market-based RSUs amounted to $ 45 million and will be recognized over a weighted average vesting period of 1.0 year.

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

The weighted-average fair value of time- and performance-based RSUs granted in 2023 was $ 204.17 and $ 204.13 , respectively, and the weighted-average fair value of time-and performance-based RSUs granted in 2022 was $ 172.34 and $ 193.48 , respectively.

(b) The total fair value of time- and performance-based RSUs vested during 2024 was $ 32 million.

The total fair value of time-, performance- , and market-based RSUs vested during 2023 and 2022 was $ 21 million and $ 22 million, respectively.

(c) Aggregate unrecognized compensation expense related to time- and performance-based RSUs amounted to $ 26 million and will be recognized over a weighted average vesting period of 1.3 years.

Non-employee Directors Deferred Compensation Plan

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 2023, 2022 and 2021, we granted 4,000 , 2,500 , and 8,800 awards, respectively, to non-employee directors.

During 2024, 2023 and 2022, we granted approximately 4,400 , 4,000 , and 2,500 awards, respectively, to non-employee directors.

Stock-Compensation Expense

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However, the majority of the plans are closed to new employees and participants are no longer accruing benefits.

The funded status of the defined benefit pension plans is recognized on the Consolidated Balance Sheets and the gains or losses and prior service costs or credits that arise during the period, but are not recognized as components of net periodic benefit cost, are recognized as a component of accumulated other comprehensive loss, net of tax.

The components of net periodic (benefit) cost consisted of the following:

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Amortization of unrecognized amounts (b)

Net periodic (benefit) cost $ 5 $ ( 11 ) $ ( 8 )

Net periodic cost (benefit) $ 4 $ 5 $ ( 11 )

(a) For the years ended December 31, 2024, 2023, and 2022, $ 3 million, $ 3 million, and $ 4 million was included in operating expenses, respectively.

For the years ended December 31, 2022 and 2021, $ 1 million, and $ 2 million was included in selling, general and administrative expenses, respectively.

For the year ended December 31, 2022, $ 1 million was included in selling, general and administrative expenses.

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

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

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

The funded status of the pension plans were as follows:

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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.

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.

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

The pension plans hold various mutual funds that invest in equity securities and are diversified among funds that invest in large cap, small cap, growth, value and international stocks as well as funds that are intended to “track” an index, such as the S&P 500.

The pension plans hold various mutual funds that invest in equity securities and are diversified

among funds that invest in large cap, small cap, growth, value and international stocks as well as funds that are intended to “track” an index, such as the S&P 500.

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.

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Total assets $ 254 $ 197 $ 59 $ 510

For the year ended December 31, 2023, we purchased and classified $ 11 million of investments as Level 3.

As of December 31, 2023

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Total assets $ 264 $ 215 $ 61 $ 540

For the year ended December 31, 2022, we purchased and classified $ 54 million of investments as Level 3.

For the years ended December 31, 2024 and 2023, we purchased and classified investments of $ 2 million and $ 11 million, respectively, as Level 3.

We estimate that future benefit payments from plan assets will be $ 33 million, $ 34 million, $ 35 million, $ 36 million, $ 37 million and $ 197 million for 2025, 2026, 2027, 2028, 2029 and 2030 to 2034, respectively.

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The fluctuations in the value of these forward contracts do, however, largely offset the impact of changes in the value of the underlying risk they economically hedge.

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

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

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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, 2023 or 2022, 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.

There were no significant concentrations of credit risk with any individual counterparty or groups of counterparties at December 31, 2024 or 2023, 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.

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Interest rate swaps 750 750

(a) Represents $ 10.3 billion of interest rate caps sold, partially offset by approximately $ 4.9 billion of interest rate caps purchased at December 31, 2023 and $ 9.8 billion of interest rate caps sold, partially offset by approximately $ 4.4 billion of interest rate caps purchased at December 31, 2022.

These amounts exclude $ 5.9 billion and $ 6.2 billion of interest rate caps purchased by our Avis Budget Rental Car Funding subsidiary at December 31, 2023 and 2022, respectively.

Fair values (Level 2) of derivative instruments are as follows:

(a) Represents $ 8.9 billion of interest rate caps sold and approximately $ 3.1 billion of interest rate caps purchased at December 31, 2024 and $ 10.3 billion of interest rate caps sold and approximately $ 4.9 billion of interest rate caps purchased at December 31, 2023.

These amounts exclude $ 5.8 billion and $ 5.9 billion of interest rate caps purchased by our Avis Budget Rental Car Funding subsidiary at December 31, 2024 and 2023, respectively, as it is not consolidated by us.

Estimated fair values (Level 2) of derivative instruments are as follows:

As of December 31, 2024 As of December 31, 2023

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Refer to Note 16 – Stockholders' Equity for amounts reclassified from accumulated other comprehensive income (loss) into earnings.

(c) Classified as a net investment hedge within currency translation adjustment in accumulated other comprehensive income (loss).

(c) Classified as a net investment hedge within currency translation adjustments in accumulated other comprehensive income (loss).

(d) Gains (losses) related to derivative instruments are expected to be largely offset by (losses) gains on the underlying exposures being hedged.

(e) For the year ended December 31, 2023, included a $ 14 million loss in interest expense and a $ 2 million gain in operating expenses.

(e) For the year ended December 31, 2024, included a $ 47 million loss in interest expense.

For the year ended December 31, 2023, included a $ 14 million loss in interest expense and a $ 2 million gain in operating expenses.

For the year ended December 31, 2022, included a $ 39 million gain in interest expense and a $ 3 million loss in operating expenses.

For the year ended December 31, 2021, included a $ 2 million loss in interest expense and a $ 1 million loss in operating expenses.

(f) Primarily included in vehicle interest, net.

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Short-term debt and current portion of long-term debt $ 20 $ 20 $ 32 $ 32

$ 32 $ 32 $ 27 $ 26

Long-term debt 5,373 5,452 4,791 4,812

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Vehicle-backed debt due to Avis Budget Rental Car Funding $ 14,083 $ 14,154 $ 15,441 $ 15,238

$ 15,441 $ 15,238 $ 11,275 $ 10,848

Vehicle-backed debt 3,441 3,469 3,422 3,435

Interest rate swaps and interest rate caps (a)

74 74 111 111

(a) Derivatives in liability position.

(a) Derivatives in a liability position.

Segment Information

Our chief operating decision-maker assesses performance and allocates resources based upon the separate financial information of our operating segments.

In identifying our reportable segments, we also consider the nature of services provided by our operating segments, the geographical areas in which the segments operate and other relevant factors.

Our chief executive officer who also serves as our chief operating decision-maker (“CODM”) assesses performance and allocates resources based upon the separate financial information of our operating segments.

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;

In identifying our reportable segments, we also consider the management structure of the organization, the nature of services provided by our operating segments, the geographical areas and economic characteristics in which the segments operate, and other relevant factors.

Our CODM 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;

long-lived asset impairment and other related charges;

restructuring and other related charges;

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transaction-related costs, net;

charges for legal matters, net, which includes amounts recorded in excess of $ 5 million related to class action lawsuits and personal injury matters;

legal matters, net, which includes amounts recorded in excess of $ 5 million, related primarily to unprecedented self-insurance reserves for allocated loss adjustment expense, class action lawsuits and personal injury matters;

non-operational charges related to shareholder activist activity, which includes third-party advisory, legal and other professional fees;

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cloud computing costs;

other (income) expense, net, and income taxes.

other (income) expense, net;

severe weather-related damages in excess of $ 5 million, net of insurance proceeds;

and income taxes.

We have revised our definition of Adjusted EBITDA to exclude severe weather-related damages in excess of $ 5 million, net of insurance proceeds.

We did not revise prior years' Adjusted EBITDA amounts because there were no other charges similar in nature to these.

We believe Adjusted EBITDA is useful as a supplemental measure in evaluating the performance of our operating businesses and in comparing our results from period to period.

We also believe that Adjusted EBITDA is useful to investors because it allows them to assess our results of operations and financial condition on the same basis that management uses internally.

Our presentation of Adjusted EBITDA may not be comparable to similarly-titled measures used by other companies.

Adjusted EBITDA is a non-GAAP measure and should not be considered in isolation or as a substitute for net income or other income statement data prepared in accordance with U.S.

Provided below is information about our revenues, significant segment expenses, reportable segment Adjusted EBITDA and a reconciliation of reportable segment Adjusted EBITDA to income (loss) before income taxes.

Year Ended December 31, 2024

Americas International Corporate

and Other (a)

Americas International Total

Revenues $ 9,111 $ 2,678 $ 11,789

Significant segment expenses:

Operating (a)

Vehicle depreciation and lease charges, net

1,215 524 — 1,739

Selling, general and administrative

Vehicle interest, net 787 154

Adjusted EBITDA 2,196 400 ( 106 ) 2,490

Non-vehicle depreciation and amortization

Assets exclusive of assets under vehicle programs

6,533 2,633 424 9,590

Assets under vehicle programs 19,285 3,694 — 22,979

Property and equipment additions 126 44 103 273

(a) Primarily represents unallocated corporate expenses and receivables from our former subsidiaries .

Reportable segment Adjusted EBITDA $ 551 $ 161 $ 712

Reconciliation of reportable segment Adjusted EBITDA to income (loss) before income taxes:

Non-vehicle related depreciation and amortization 234

Interest expense related to corporate debt, net 4

Long-lived asset impairment and other related charges (b)

Restructuring and other related charges 37

Transaction-related costs, net 3

Other (income) expense, net 9

Legal matters, net;

cloud computing costs;

and severe weather-related damages, net 77

Corporate and other (c)

Income (loss) before income taxes $ ( 2,627 )

(a) Excludes legal matters, net;

cloud computing costs;

and severe weather-related damages, net.

(b) Includes an impairment charge of approximately $ 2.3 billion related to the acceleration of the rotation of our fleet and a charge of $ 180 million related to the write-down of the carrying value of certain vehicles held for sale within our Americas reportable segment.

See Note 2 – Summary of Significant Accounting Policies – Impairment of Long-Lived Assets.

(c) Includes unallocated corporate expenses, including $ 354 million and $ 19 million in interest expense and early extinguishment of debt, respectively, which are not attributable to a particular reportable segment.

Year Ended December 31, 2023

Americas International Corporate

and Other (a)

Americas International Total

Revenues $ 9,347 $ 2,661 $ 12,008

Significant segment expenses:

Operating (a)

Vehicle depreciation and lease charges, net 1,215 524

414 414 — 828

Selling, general and administrative 894 409

Vehicle interest, net 617 119

Adjusted EBITDA 3,660 560 ( 87 ) 4,133

Non-vehicle depreciation and amortization

141 66 18 225

Assets exclusive of assets under vehicle programs

5,798 2,402 299 8,499

Assets under vehicle programs 14,269 3,159 — 17,428

Property and equipment additions 117 33 96 246

(a) Primarily represents unallocated corporate expenses and receivables from our former subsidiaries.

Reportable segment Adjusted EBITDA $ 2,196 $ 400 $ 2,596

Reconciliation of reportable segment Adjusted EBITDA to income (loss) before income taxes:

Non-vehicle related depreciation and amortization 215

Interest expense related to corporate debt, net ( 6 )

Restructuring and other related charges 11

Transaction-related costs, net 3

Other (income) expense, net 3

Legal matters, net and cloud computing costs 10

Corporate and other (b)

Income (loss) before income taxes $ 1,914

(a) Excludes legal matters, net and cloud computing costs.

(b) Includes unallocated corporate expenses, including $ 302 million and $ 5 million in interest expense and early extinguishment of debt, respectively, which are not attributable to a particular reportable segment.

Year Ended December 31, 2022

Americas International Corporate

and Other (a)

Americas International Total

Revenues $ 9,474 $ 2,520 $ 11,994

Significant segment expenses:

Operating (a)

Vehicle depreciation and lease charges, net 414 414

851 346 — 1,197

Selling, general and administrative 902 378

Vehicle interest, net 348 54

Adjusted EBITDA 2,364 118 ( 71 ) 2,411

Non-vehicle depreciation and amortization

178 84 10 272

Assets exclusive of assets under vehicle programs

5,746 2,716 119 8,581

Assets under vehicle programs 11,437 2,582 — 14,019

Property and equipment additions 74 26 8 108

(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.

For the Year Ended December 31,

2023 2022 2021

Adjusted EBITDA $ 2,490 $ 4,133 $ 2,411

Reportable segment Adjusted EBITDA $ 3,660 $ 560 $ 4,220

Reconciliation of reportable segment Adjusted EBITDA to income (loss) before income taxes:

Non-vehicle related depreciation and amortization 207

Interest expense related to corporate debt, net 3

Interest expense 296 250 218

Early extinguishment of debt 5 — 136

Restructuring and other related charges 18

Transaction-related costs, net 8

Other (income) expense, net (a)

Reported within operating expenses:

Other (income) expense, net ( 7 )

Cloud computing costs;

COVID-19 charges — ( 9 ) ( 2 )

Legal matters, net

Income before income taxes $ 1,914 $ 3,636 $ 1,708

(a) Primarily consists of gains or losses related to our equity investment in a former subsidiary, offset by fleet related and certain administrative services provided to the same former subsidiary.

The geographic segment information provided below is classified based on the geographic location of our subsidiaries.

COVID-19 charges, net;

and legal matters, net ( 3 )

Corporate and other (b)

Income (loss) before income taxes $ 3,636

(a) Excludes cloud computing costs;

COVID-19 charges, net;

and legal matters, net.

(b) Includes unallocated corporate expenses, including $ 247 million in interest expense, which are not attributable to a particular reportable segment.

Provided below is information about our segment assets.

Americas International Unallocated Assets (a)

Property and equipment additions $ 109 $ 40 $ 53 $ 202

Assets exclusive of assets under vehicle programs 6,785 2,539 344 9,668

Assets under vehicle programs 16,058 3,315 — 19,373

Net long-lived assets 1,474 733 162 2,369

Property and equipment additions $ 126 $ 44 $ 103 $ 273

Assets exclusive of assets under vehicle programs 6,533 2,633 424 9,590

Assets under vehicle programs 19,285 3,694 — 22,979

Net long-lived assets 1,483 795 210 2,488

Property and equipment additions $ 117 $ 33 $ 96 $ 246

Assets exclusive of assets under vehicle programs 5,798 2,402 299 8,499

Assets under vehicle programs 14,269 3,159 — 17,428

Net long-lived assets 1,446 761 123 2,330

(a) Includes unallocated corporate assets which are not attributable to a particular reportable segment.

Provided below is information classified based on the geographic location of our subsidiaries.

United States All Other Countries Total

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Net long-lived assets 1,386 944 2,330

Subsequent Event

In January 2024, our Avis Budget Rental Car Funding (AESOP) LLC subsidiary issued $ 1.2 billion of asset-backed notes to investors with an expected final payment date of June 2029 and a weighted average interest rate of 5.51 %.

Subsequent Events

In January 2025, our Avis Budget Rental Car Funding (AESOP) LLC subsidiary issued an additional $ 358 million of asset-backed notes to investors with expected final payment dates ranging from August 2027 to February 2029 and a weighted average interest rate of 8.01 %.

These notes were issued under previously outstanding series of debt.

In February 2025, we borrowed $ 500 million under a floating rate term loan due December 2025, which is part of our senior revolving credit facilities.

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 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).

4.1 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).

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4.5 Indenture, dated as of July 13, 2023, by and among Avis Budget Finance plc, as issuer, the guarantors party thereto, Deutsche Bank Trust Company Americas, as trustee and registrar, and Deutsche Bank AG, London Branch, as paying agent (Incorporated by reference to Exhibit 4.1 to the Company’s Current Report on Form 8-K dated July 14, 2023).

4.6 First Supplemental Indenture, dated as of May 21, 2024, to the indenture dated as of July 13, 2023 by and among Avis Budget Finance plc, as issuer, the guarantors party thereto, Deutsche Bank Trust Company Americas, as trustee and registrar, and Deutsche Bank AG, London Branch, as paying agent (incorporated by reference to Exhibit 4.1 to the Company’s Current Report on Form 8-K dated May 21, 2024).

4.7 Indenture, dated as of November 22, 2023, by and among Avis Budget Car Rental, LLC and Avis Budget Finance, Inc., together as issuers, the guarantors party thereto and Citibank, N.A., as trustee (incorporated by reference to Exhibit 4.1 to the Company’s Current Report on Form 8-K dated November 22, 2023).

4.8 Indenture, dated as of February 28, 2024, by and among Avis Budget Finance plc, as issuer, the guarantors party thereto, U.S.

Bank Trust Company, National Association, as trustee, Elavon Financial Services DAC, as registrar and transfer agent, and Elavon Financial Services DAC, UK Branch, as paying agent (incorporated by reference to Exhibit 4.1 to the Company’s Current Report on Form 8-K dated February 29, 2024).

4.9 Indenture, dated as of September 13, 2024, by and among Avis Budget Car Rental, LLC and Avis Budget Finance, Inc., together as issuers, the guarantors party thereto and U.S.

Bank Trust Company, National Association, as trustee (incorporated by reference to Exhibit 4.1 to the Company’s Current Report on Form 8-K dated September 13, 2024).

4.10 Description of the Company’s Securities Registered Pursuant to Section 12 of the Securities Exchange Act of 1934 (Incorporated by reference to Exhibit 4.8 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, dated February 17, 2022).

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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 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).

10.3 Agreement between Patrick Rankin and Avis Budget Services Limited, dated August 15, 2019 (Incorporated by reference to Exhibit 10.9 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2019, dated February 20, 2020).

10.2 Agreement between Avis Budget Group, Inc.

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Supplemental Savings Plan, amended and restated as of January 1, 2023 (incorporated by reference to Exhibit 10.18 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, dated February 16, 2023).

10.18 Avis Budget Group, Inc.

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).†

10.19 Avis Rent A Car System, LLC Pension Plan (Incorporated by reference to Exhibit 10.20 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2018, dated February 21, 2019).†

10.16 Cendant Corporation* Officer Personal Financial Services Policy (Incorporated by reference to Exhibit 10.3 to the Company’s Current Report on Form 8-K, dated January 26, 2005).

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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).

10.50 Fifth Amended and Restated Series 2010-6 Supplement, dated as of April 14, 2022, 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 APA Banks and the Funding Agents 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 10.2 to the Company’s Current Report on Form 8-K, dated April 19, 2022).

10.51 First Amendment to the Fifth Amended and Restated Series 2010-6 Supplement, dated as of March 30, 2023, 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 APA Banks and the Funding Agents 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 10.1 to the Company’s Current Report on Form 8-K dated April 4, 2023).

10.52 Second Amendment to the Fifth Amended and Restated Series 2010-6 Supplement, dated as of April 24, 2023, 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 APA Banks and the Funding Agents 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 10.1 to the Company’s Current Report on Form 8-K dated April 28, 2023).

10.53 Purchaser Group Supplement, dated as of July 20, 2023, among the Non-Conduit Purchaser listed on the signature pages thereof, Avis Budget Rental Car Funding (AESOP) LLC, JPMorgan Chase Bank, N.A., as Administrative Agent and Avis Budget Car Rental, LLC, as Administrator.

10.54 Third Amendment to the Fifth Amended and Restated Series 2010-6 Supplement, dated as of November 3, 2023, 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 APA Banks and the Funding Agents 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 10.1 to the Company’s Current Report on Form 8-K dated November 3, 2023).

10.55 Purchaser Group Supplement, dated as of December 28, 2023, among the Non-Conduit Purchaser listed on the signature pages thereof, Avis Budget Rental Car Funding (AESOP) LLC, JPMorgan Chase Bank, N.A., as Administrative Agent and , Avis Budget Car Rental, LLC, as Administrator.

10.56 Fourth Amendment to Fifth Amended and Restated Series 2010-6 Supplement, dated as of January 12, 2024, 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 APA Banks and the Funding Agents 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 10.2 to the Company’s Current Report on Form 8-K dated January 18, 2024).

10.57 Third Amended and Restated Series 2015-3 Supplement, dated as of April 14, 2022, 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 APA Banks and the Funding Agents 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 10.3 to the Company’s Current Report on Form 8-K, dated April 19, 2022).

10.58 First Amendment to the Third Amended and Restated Series 2015-3 Supplement, dated as of March 30, 2023, 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 APA Banks and the Funding Agents 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 10.2 to the Company’s Current Report on Form 8-K dated April 4, 2023).

10.59 Second Amendment to the Third Amended and Restated Series 2015-3 Supplement, dated as of April 24, 2023, 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 APA Banks and the Funding Agents 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 10.2 to the Company’s Current Report on Form 8-K dated April 28, 2023).

10.60 Third Amendment to the Third Amended and Restated Series 2015-3 Supplement, dated as of November 3, 2023, 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 APA Banks and the Funding Agents 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 10.2 to the Company’s Current Report on Form 8-K dated November 3, 2023).

10.61 Fourth Amendment to Third Amended and Restated Series 2015-3 Supplement, dated as of January 12, 2024, 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 APA Banks and the Funding Agents 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 10.3 to the Company’s Current Report on Form 8-K dated January 18, 2024).

10.62 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).

10.63 Amended and Restated Series 2019-2 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 2019-2 Agent (Incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K dated June 23, 2021).

10.46 Sixth Amended and Restated Series 2010-6 Supplement, dated as of March 4, 2024, 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 APA Banks and the Funding Agents 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 10.1 to the Company’s Current Report on Form 8-K dated March 8, 2024).

10.47 Fourth Amended and Restated Series 2015-3 Supplement, dated as of March 4, 2024, 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 APA Banks and the Funding Agents 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 10.2 to the Company’s Current Report on Form 8-K dated March 8, 2024).

10.48 Amended and Restated Series 2019-3 Supplement, dated as of May 26, 2022, between Avis Budget Rental Car Funding (AESOP) LLC and The Bank of New York Mellon Trust Company, N.A., as trustee and Series 2019-3 Agent (Incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K, dated June 10, 2022).

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(Incorporated by reference to Exhibit 10.3 to the Company’s Current Report on Form 8-K, dated June 23, 2021).

10.66 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).

10.50 Amended and Restated Series 2020-2 Supplement, dated as of December 27, 2024, 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.

10.51 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).

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10.55 Series 2022-4 Supplement, dated as of July 21, 2022, between Avis Budget Rental Car Funding (AESOP) LLC and The Bank of New York Mellon Trust Company, N.A., as trustee and Series 2022-4 Agent (Incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K, dated July 22, 2022).

10.72 Series 2022-5 Supplement, dated as of November 29, 2022, between Avis Budget Rental Car Funding (AESOP) LLC and The Bank of New York Mellon Trust Company, N.A., as trustee and as Series 2022-5 Agent (Incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K, dated December 2 , 2022).

10.73 Series 2023-1 Supplement, dated as of January 17, 2023, between Avis Budget Rental Car Funding (AESOP) LLC and The Bank of New York Mellon Trust Company, N.A., as trustee and as Series 2023-1 Agent (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K dated January 20, 2023).

10.56 Amended and Restated Series 2022-5 Supplement, dated as of December 27, 2024, between Avis Budget Rental Car Funding (AESOP) LLC and The Bank of New York Mellon Trust Company, N.A., as trustee and as Series 2022-5 Agent.

10.57 Series 2023-1 Supplement, dated as of January 17, 2023, between Avis Budget Rental Car Funding (AESOP) LLC and The Bank of New York Mellon Trust Company, N.A., as trustee and as Series 2023-1 Agent (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K dated January 20, 2023).

10.75 Series 2023-3 Supplement, dated as of April 6, 2023, between Avis Budget Rental Car Funding (AESOP) LLC and The Bank of New York Mellon Trust Company, N.A., as trustee and as Series 2023-3 Agent (Incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K dated April 11, 2023).

10.58 First Amendment to Series 2023-1 Supplement, dated as of February 5, 2024, between Avis Budget Rental Car Funding (AESOP) LLC and The Bank of New York Mellon Trust Company, N.A., as trustee and as Series 2023-1 Agent.

(Incorporated by reference to Exhibit 10.5 to the Company’s Current Report on Form 10-Q, for the quarterly period ended March 31, 2024, dated May 2, 2024).

10.59 Amended and Restated Series 2023-2 Supplement, dated as of December 27, 2024, between Avis Budget Rental Car Funding (AESOP) LLC and The Bank of New York Mellon Trust Company, N.A., as trustee and as Series 2023-2 Agent.

10.60 Amended and Restated Series 2023-3 Supplement, dated as of December 27, 2024, between Avis Budget Rental Car Funding (AESOP) LLC and The Bank of New York Mellon Trust Company, N.A., as trustee and as Series 2023-3 Agent.

10.61 Series 2023-4 Supplement, dated as of April 6, 2023, between Avis Budget Rental Car Funding (AESOP) LLC and The Bank of New York Mellon Trust Company, N.A., as trustee and as Series 2023-4 Agent (Incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K dated April 11, 2023).

10.77 Series 2023-5 Supplement, dated as of June 1, 2023, between Avis Budget Rental Car Funding (AESOP) LLC and The Bank of New York Mellon Trust Company, N.A., as trustee and as Series 2023-5 Agent (Incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K dated June 6, 2023).

10.62 Amended and Restated Series 2023-5 Supplement, dated as of December 27, 2024, between Avis Budget Rental Car Funding (AESOP) LLC and The Bank of New York Mellon Trust Company, N.A., as trustee and as Series 2023-5 Agent.

10.63 Series 2023-6 Supplement, dated as of June 1, 2023, between Avis Budget Rental Car Funding (AESOP) LLC and The Bank of New York Mellon Trust Company, N.A., as trustee and as Series 2023-6 Agent (Incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K dated June 6, 2023).

2 unchanged sentences

10.66 Series 2024-1 Supplement, dated as of January 12, 2024, between Avis Budget Rental Car Funding (AESOP) LLC and The Bank of New York Mellon Trust Company, N.A., as trustee and as Series 2024-1 Agent (Incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K dated January 18, 2024).

10.82 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 (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K, dated July 13, 2021).

10.67 Amended and Restated Series 2024-2 Supplement, dated as of December 27, 2024, between Avis Budget Rental Car Funding (AESOP) LLC and The Bank of New York Mellon Trust Company, N.A., as trustee and as Series 2024-2 Agent.

10.68 Series 2024-3 Supplement, dated as of March 12, 2024, between Avis Budget Rental Car Funding (AESOP) LLC and The Bank of New York Mellon Trust Company, N.A., as trustee and as Series 2024-3 Agent (incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K dated March 18, 2024).

10.69 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 and JPMorgan Chase Bank, N.A., as Administrative Agent (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K, dated July 13, 2021).

10.70 First Amendment, dated as of March 16, 2022, to the 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 and 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 March 25, 2022).

2 unchanged sentences

10.73 Fourth Amendment, dated as of February 6, 2023, to the Sixth Amended and Restated Credit Agreement, dated as of July 9, 2021, among Avis Budget Holdings, LLC, Avis Budget Car Rental, LLC, as borrower, Avis Budget Group, Inc., the subsidiary borrowers from time to time party thereto, the lenders from time to time party thereto and JPMorgan Chase Bank, N.A., as Administrative Agent, and the other parties thereto (incorporated by reference to Exhibit 10.76 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, dated February 16, 2023).

10.87 Fifth Amendment, dated as of April 21, 2023, to the Sixth Amended and Restated Credit Agreement, dated as of July 9, 2021, among Avis Budget Holdings, LLC, Avis Budget Car Rental, LLC, as borrower, Avis Budget Group, Inc., the subsidiary borrowers from time to time party thereto, the lenders from time to time party thereto and JPMorgan Chase Bank, N.A., as Administrative Agent, and the other parties thereto (incorporated by reference to Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q dated August 1, 2023).

10.74 Fifth Amendment, dated as of April 21, 2023, to the Sixth Amended and Restated Credit Agreement, dated as of July 9, 2021, among Avis Budget Holdings, LLC, Avis Budget Car Rental, LLC, as borrower, Avis Budget Group, Inc., the subsidiary borrowers from time to time party thereto, the lenders from time to time party thereto and JPMorgan Chase Bank, N.A., as Administrative Agent, and the other parties thereto (incorporated by reference to Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2023, dated August 1, 2023).

10.75 Sixth Amendment, dated as of December 8, 2023, to the Sixth Amended and Restated Credit Agreement, dated as of July 9, 2021, among Avis Budget Holdings, LLC, Avis Budget Car Rental, LLC, as borrower, Avis Budget Group, Inc., the subsidiary borrowers from time to time party thereto, the lenders from time to time party thereto and JPMorgan Chase Bank, N.A., as Administrative Agent, and the other parties thereto (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K, dated December 14, 2023).

10.76 Seventh Amendment, dated as of December 27, 2023, to the Sixth Amended and Restated Credit Agreement, dated as of July 9, 2021, among Avis Budget Holdings, LLC, Avis Budget Car Rental, LLC, as borrower, Avis Budget Group, Inc., the subsidiary borrowers from time to time party thereto, the lenders from time to time party thereto and JPMorgan Chase Bank, N.A., as Administrative Agent, and the other parties thereto (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K, dated January 3, 2024).

10.90 Administrative Amendment, dated as of December 27, 2023, to the Sixth Amended and Restated Credit Agreement, dated as of July 9, 2021, among Avis Budget Holdings, LLC, Avis Budget Car Rental, LLC, as borrower, Avis Budget Group, Inc., the subsidiary borrowers from time to time party thereto, the lenders from time to time party thereto and JPMorgan Chase Bank, N.A., as Administrative Agent, and the other parties thereto.

10.77 Eighth Amendment, dated as of May 29, 2024, to the Sixth Amended and Restated Credit Agreement, dated as of July 9, 2021, among Avis Budget Holdings, LLC, Avis Budget Car Rental, LLC, as borrower, Avis Budget Group, Inc., the subsidiary borrowers from time to time party thereto, the lenders from time to time party thereto and JPMorgan Chase Bank, N.A., as Administrative Agent, and the other parties thereto (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 10-Q for the quarterly period ended June 30, 2024, dated August 6, 2024).

10.78 Administrative Amendment, dated as of December 27, 2023, to the Sixth Amended and Restated Credit Agreement, dated as of July 9, 2021, among Avis Budget Holdings, LLC, Avis Budget Car Rental, LLC, as borrower, Avis Budget Group, Inc., the subsidiary borrowers from time to time party thereto, the lenders from time to time party thereto and JPMorgan Chase Bank, N.A., as Administrative Agent, and the other parties thereto (incorporated by reference to Exhibit 10.90 to the Company's Annual Report on Form 10-K for the year ended December 31, 2023, dated February 16, 2024).

19 Securities Trading Policy.

21 Subsidiaries of Registrant.

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97 Avis Budget Group, Inc.

Clawback Policy

Clawback Policy (incorporated by reference to Exhibit 97 to the Company's Annual Report on Form 10-K for the year ended December 31, 2023, dated February 16, 2024).

101.INS XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.

6 unchanged sentences

____________________

Certain other long-term debt is described in Note 14 of the Notes to Consolidated Financial Statements.

The Company agrees to furnish to the Securities and Exchange Commission, upon request, copies of any instruments defining the rights of holders of any such long-term debt described in Note 14 and not filed herewith.

* Cendant Corporation is now known as Avis Budget Group, Inc.

4 unchanged sentences

† Denotes management contract or compensatory plan.

†† Certain portions of this exhibit have been omitted in accordance with Item 601(b)(10)(iv) of Regulation S-K.

The registrant agrees to furnish supplementally an unredacted copy of this exhibit to the Securities and Exchange Commission upon its request.

Certain other long-term debt is described in Note 14 of the Notes to Consolidated Financial Statements.

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