UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Form 11-K |
x | ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the fiscal year ended December 31, 2017
OR
For the transition period from _____ to _____
o | TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Commission File No. 001-10308
A. | Full title of the plan and address of the plan, if different from that of the issuer named below: |
AB Car Rental Services, Inc.
Retirement Savings Plan
For Bargaining Hourly Employees
B. | Name of issuer of the securities held pursuant to the plan and the address of its principal executive office: |
Avis Budget Group, Inc.
6 Sylvan Way
Parsippany, New Jersey 07054
AB CAR RENTAL SERVICES, INC.
RETIREMENT SAVINGS PLAN FOR BARGAINING HOURLY EMPLOYEES
TABLE OF CONTENTS |
Page | |
FINANCIAL STATEMENTS: | |
SUPPLEMENTAL SCHEDULES: | |
All other schedules required by Section 2520.103-10 of the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974 have been omitted because they are not applicable.
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Administrator, Trustee and Participants of the
AB Car Rental Services, Inc. Retirement Savings Plan For Bargaining Hourly Employees
Opinion on the Financial Statements
We have audited the accompanying statements of net assets available for benefits of the AB Car Rental Services, Inc. Retirement Savings Plan For Bargaining Hourly Employees (the “Plan”) as of December 31, 2017 and 2016, and the related statement of changes in net assets available for benefits for the year ended December 31, 2017, and the related notes to the financial statements. In our opinion, the financial statements present fairly, in all material respects, the net assets available for benefits of the Plan as of December 31, 2017 and 2016, and the changes in net assets available for benefits for the year ended December 31, 2017, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Plan's management. Our responsibility is to express an opinion on the Plan’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Plan in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
Supplemental Information
The schedule of assets (held at end of year) as of December 31, 2017 and the schedule of delinquent contributions for the year ended December 31, 2017 have been subjected to audit procedures performed in conjunction with the audit of the Plan's 2017 financial statements. The supplemental information is the responsibility of the Plan's management. Our audit procedures included determining whether the supplemental information reconciles to the financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the supplemental information. In forming our opinion on the supplemental information, we evaluated whether the supplemental information, including its form and content, is presented in conformity with the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. In our opinion, the supplemental information is fairly stated, in all material respects, in relation to the financial statements as a whole.
We have served as the Plan's auditor since 2009.
/s/ CohnReznick LLP
Roseland, New Jersey
June 27, 2018
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AB CAR RENTAL SERVICES, INC.
RETIREMENT SAVINGS PLAN FOR BARGAINING HOURLY EMPLOYEES
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS |
AS OF DECEMBER 31, 2017 AND 2016 |
2017 | 2016 | ||||||
ASSETS: | |||||||
Participant-directed investments: | |||||||
Investments, at fair value | $ | 53,750,708 | $ | 48,862,163 | |||
Receivables: | |||||||
Notes receivable from participants | 3,289,216 | 3,231,879 | |||||
Participant contributions | 164,624 | 159,926 | |||||
Employer contributions | 30,830 | 31,358 | |||||
Interest and dividends | 95 | 6 | |||||
Total receivables | 3,484,765 | 3,423,169 | |||||
NET ASSETS AVAILABLE FOR BENEFITS | $ | 57,235,473 | $ | 52,285,332 | |||
The accompanying notes are an integral part of these financial statements.
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AB CAR RENTAL SERVICES, INC.
RETIREMENT SAVINGS PLAN FOR BARGAINING HOURLY EMPLOYEES
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS |
FOR THE YEAR ENDED DECEMBER 31, 2017 |
ADDITIONS TO NET ASSETS: | |||
Net investment income: | |||
Net appreciation in fair value of investments | $ | 4,789,935 | |
Dividends | 1,398,552 | ||
Interest | 9,230 | ||
Net investment income | 6,197,717 | ||
Interest income on notes receivable from participants | 139,993 | ||
Contributions: | |||
Participants | 3,951,424 | ||
Employer | 708,615 | ||
Rollovers | 38,657 | ||
Total contributions | 4,698,696 | ||
Net transfers of participant account balances from affiliated plans | 315,169 | ||
Total additions | 11,351,575 | ||
DEDUCTIONS FROM NET ASSETS: | |||
Benefits paid to participants | 6,388,310 | ||
Administrative expenses | 13,124 | ||
Total deductions | 6,401,434 | ||
NET INCREASE IN ASSETS | 4,950,141 | ||
NET ASSETS AVAILABLE FOR BENEFITS: | |||
BEGINNING OF YEAR | 52,285,332 | ||
END OF YEAR | $ | 57,235,473 | |
The accompanying notes are an integral part of these financial statements.
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AB CAR RENTAL SERVICES, INC.
RETIREMENT SAVINGS PLAN FOR BARGAINING HOURLY EMPLOYEES
NOTES TO FINANCIAL STATEMENTS |
1. | DESCRIPTION OF THE PLAN |
The following description of the AB Car Rental Services, Inc. Retirement Savings Plan For Bargaining Hourly Employees (the “Plan”) provides only general information. Participants should refer to the Summary Plan Description or the Plan document, which are available from AB Car Rental Services, Inc. (the “Company”) for a more complete description of the Plan’s provisions. The Company is a wholly-owned subsidiary of Avis Budget Group, Inc. (“ABGI”).
General – The Plan is a defined contribution plan that provides Internal Revenue Code (“IRC”) Section 401(k) employee salary deferral benefits and additional employer contributions for the Company’s eligible employees. The Avis Budget Group, Inc. Employee Benefits Committee is the Plan administrator (“Plan Administrator”). The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 (“ERISA”). Merrill Lynch Trust Company FSB (the “Trustee”) is the Plan’s trustee.
The following is a summary of certain Plan provisions:
Eligibility – Each employee of the Company, who as of March 31, 2004 was eligible to participate in a qualified defined contribution plan of an ABGI subsidiary, became an eligible participant on the later of (i) April 1, 2004; or (ii) the date that such employee ceased participation in such other qualified defined contribution plan. Employees who are members of the collective bargaining unit covered by a collective bargaining agreement between such unit and the Company are eligible to participate in the Plan upon attainment of age 21 and completion of one year of service (a year of service means the completion of at least 1,000 hours of service during the first 12 months of employment or the completion of at least 1,000 hours in any Plan year that follows the employment date).
Participant Contributions – Participants may elect to make pre-tax contributions up to 16% of pre-tax annual compensation, up to the statutory maximum of $18,000 for 2017. In addition, employees participating in the Plan may make additional contributions from 1% to 10% of specified compensation on a current, after-tax basis, subject to certain limitations imposed by law. Certain eligible participants (age 50 and over) are permitted to contribute an additional $6,000 as a catch-up contribution, resulting in a maximum pre-tax contribution of $24,000 for 2017.
Employer Contributions – The Plan permits employer and/or employer matching contributions in accordance with the terms of the collective bargaining agreement in effect for the Plan year with respect to the collective bargaining unit of which the participant is a member.
Rollovers – All employees, upon commencement of employment, are provided the option of making a rollover contribution into the Plan in accordance with Internal Revenue Service (“IRS”) regulations.
Investments – Participants direct the investment of contributions to various investment options and may reallocate investments among the various funds or change future contributions on a daily basis. A fund reallocation must be in 1% increments and is limited to one reallocation per day, subject to restrictions imposed by the mutual fund companies to curb short-term trading. Participants should refer to the Plan document regarding investments in ABGI common stock. Participants should refer to each fund’s prospectus for a more complete description of the risks and restrictions associated with each fund.
Vesting – At any time, participants are 100% vested in their pre-tax and after-tax contributions to the Plan, plus actual earnings thereon. Employer contributions vest at a rate of 20% per year and are fully vested upon five years of service.
Notes Receivable from Participants – Participants may borrow, in the form of a loan, from their fund accounts up to the lesser of $50,000 or 50% of their vested balance, provided the vested balance is at least $2,000. The
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notes are secured by the participant’s vested account balance and bear interest at a rate commensurate with local prevailing rates as determined quarterly by the Plan Administrator. Note repayments are made through payroll deductions over a period not to exceed five years, unless the proceeds of the note are used to purchase the principal residence of the participant, in which case the term is not to exceed 15 years. Notes receivable from participants, which are secured by the borrowing participant’s vested balance, are valued at the outstanding principal balance plus any accrued and unpaid interest. Interest income is recorded on the accrual basis. Related fees are recorded as administrative expenses and are expensed when they are incurred. No allowance for credit losses has been recorded as of December 31, 2017 and 2016. If a participant ceases to make loan repayments and the Plan Administrator deems the participant loan to be in default, the participant loan balance is reduced and a benefit payment is recorded.
Participant Accounts – A separate account is maintained for each participant. Each participant’s account is credited with the participant’s contributions, the Company’s matching contributions, and an allocation of Plan earnings, including interest, dividends and net realized and unrealized appreciation in fair value of investments. Each participant’s account is also charged with an allocation of net realized and unrealized depreciation in fair value of investments and certain administrative expenses. Allocations are based on earnings or participant account balances, as defined in the Plan document. The benefit to which a participant is entitled is the benefit that can be provided from the participant’s vested account.
Payment of Benefits to Participants – Distribution of the participant’s account may be made in a lump sum payment upon retirement, death or disability, or upon termination of employment. Participants are entitled to withdraw certain portions of their vested balance. Participants are permitted to process in-service withdrawals, in accordance with Plan provisions, upon attaining age 59½ or for hardship in certain circumstances, as defined in the Plan document, before that age.
Forfeited Accounts – Forfeited balances of terminated participants’ non-vested accounts are used to reduce employer contributions. As of December 31, 2017 and 2016, forfeited account balances amounted to $20,246 and $989, respectively. During 2017, $3,139 of forfeited non-vested accounts were used to reduce employer contributions.
Administrative Expenses – Administrative expenses of the Plan may be paid by the Company; otherwise such expenses are paid by the Plan. Fees for participants’ distributions, withdrawals and similar expenses are paid by the Plan.
Transfers from Affiliated Plans – Net transfers of participant account balances from affiliated plans of the Company totaled $315,169 for the year ended December 31, 2017.
2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
Basis of Accounting – The accompanying financial statements have been prepared on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”).
Use of Estimates – The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported and related disclosures. Actual results could differ from those estimates.
Risks and Uncertainties – The Plan invests in various securities, including mutual funds, common/collective trusts and Avis Budget Group, Inc. common stock. Investment securities are exposed to various risks, such as interest rate and credit risks and overall market volatility. Due to the level of risk associated with certain investment securities, it is reasonably possible that changes in the values of investment securities will occur in the near term and that such changes would materially affect participant account balances and the amounts reported in the financial statements.
Cash and Cash Equivalents – The Plan considers highly liquid investments with an original maturity of three months or less to be cash equivalents.
Valuation of Investments and Income Recognition – The Plan’s investments are stated at fair value, which the Plan classifies as follows: (i) Level 1, which refers to securities valued using quoted prices from active markets
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for identical assets, includes the common stock of publicly traded companies, mutual funds with quoted market prices and common/collective trusts with quoted market prices which operate similar to mutual funds, (ii) Level 2, which refers to securities for which significant other observable market inputs are readily available including common/collective trusts for which quoted market prices are not readily available and (iii) Level 3, which refers to securities valued based on significant unobservable inputs.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Securities traded on a national securities exchange are valued at the last reported sales price on the last business day of the Plan year. Mutual funds are valued at the quoted market price, which represents the net asset value of shares held by the Plan at year-end. Common/collective trusts are valued at the net asset value of the shares held by the Plan at year-end, which is based on the fair value of the underlying assets.
Purchases and sales of securities are recorded on a trade-date basis. Dividends are recorded on the ex-dividend date and interest is recorded when earned. The accompanying statement of changes in net assets available for benefits presents net appreciation in fair value of investments, which includes unrealized gains and losses on investments held at December 31, 2017, realized gains and losses on investments sold during the year then ended and management and operating expenses associated with the Plan’s investments in mutual funds and common/collective trusts.
Management fees and operating expenses charged to the Plan for investments in the mutual funds and common/collective trusts are deducted from income earned on a daily basis and are not separately reflected. Consequently, management fees and operating expenses are reflected as a reduction of investment return for such investments.
Benefit Payments – Benefits paid to participants are recorded upon distribution. Amounts allocated to accounts of participants who have elected to withdraw from the Plan, but have not yet received distributions from the Plan, totaled $9,546 and $25,345 at December 31, 2017 and 2016, respectively.
3. | FEDERAL INCOME TAX STATUS |
The IRS determined and informed the Company by letter dated September 27, 2017 that the Plan and related trust are designed in accordance with applicable sections of the IRC. The Plan has been amended since receiving this determination letter. However, the Plan Administrator and the Plan's counsel believe that the Plan is designed and is currently being operated in compliance with the applicable requirements of the IRC and that the Plan and related trust continue to be tax exempt. Therefore, no provision for income taxes has been included in the Plan’s financial statements.
U.S. GAAP requires Plan management to evaluate uncertain tax positions taken by the Plan and recognize a tax liability if the organization has taken an uncertain tax position that more likely than not would not be sustained upon examination by the IRS.
4. | EXEMPT PARTY-IN-INTEREST TRANSACTIONS |
Loans to participants qualify as party-in-interest transactions.
At December 31, 2017 and 2016, the Plan held 39,487 and 45,600 shares, respectively, of ABGI common stock with a cost basis of $762,382 and $839,039, respectively. During 2017 and 2016, the Plan did not receive any dividends from ABGI, which is the parent company of the sponsoring employers.
5. | PLAN TERMINATION |
Although the Company has not expressed any intention to do so, the Company reserves the right to modify, suspend, amend or terminate the Plan in whole or in part at any time subject to the provisions of ERISA. If the Plan is terminated, the amounts credited to the employer contribution accounts of all participants become fully vested.
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6. | RECONCILIATION TO FORM 5500 |
The following is a reconciliation of net assets available for benefits per the financial statements to Form 5500 as of December 31:
2017 | 2016 | |||||||
Net assets available for benefits per the financial statements | $ | 57,235,473 | $ | 52,285,332 | ||||
Less: | Amounts allocated to withdrawing participants | (9,546 | ) | (25,345 | ) | |||
Net assets available for benefits per Form 5500 | $ | 57,225,927 | $ | 52,259,987 | ||||
The following is a reconciliation of benefits paid to participants per the financial statements for the year ended December 31, 2017 to Form 5500:
Benefits paid to participants per the financial statements | $ | 6,388,310 | ||
Less: | Certain deemed distributions of notes receivable from participants | (165,139 | ) | |
Amounts allocated to withdrawing participants at December 31, 2016 | (25,345 | ) | ||
Corrective distributions | (10,031 | ) | ||
Add: | Amounts allocated to withdrawing participants at December 31, 2017 | 9,546 | ||
Benefits paid to participants per Form 5500 | $ | 6,197,341 | ||
Amounts allocated to withdrawing participants are recorded on the Form 5500 for benefit claims that have been processed and approved for payment prior to December 31, 2017, but not yet paid as of that date.
The following is a reconciliation of changes in net assets available for benefits per the financial statements for the year ended December 31, 2017 to the net income per Form 5500:
Increase in net assets available for benefits per the financial statements | $ | 4,950,141 | ||
Less: | Amounts allocated to withdrawing participants at December 31, 2017 | (9,546 | ) | |
Net transfer of assets to the Plan (Reflected in line L-Transfer of assets on Form 5500) | (315,169 | ) | ||
Add: | Amounts allocated to withdrawing participants at December 31, 2016 | 25,345 | ||
Net income per Form 5500 | $ | 4,650,771 | ||
7. | FAIR VALUE MEASUREMENTS |
The Plan measures certain financial assets and liabilities at fair value. The asset or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. See Note 2-Summary of Significant Accounting Policies for the Plan’s valuation methodology used to measure fair value.
The following is a description of the valuation methodologies used for assets and liabilities measured at fair value. There have been no changes in the methodologies used at December 31, 2017 and 2016.
• | Cash and cash equivalents – Money market funds are valued at the closing price reported from an actively traded exchange and are classified as Level 1. Certificates of deposit are valued at amortized cost, which approximates fair value and are classified as Level 2. |
• | Avis Budget Group, Inc. common stock – The fair value of Avis Budget Group, Inc. common stock is valued at the closing price reported on the active markets on which the security is traded. As such, these assets are classified as Level 1. |
• | Mutual funds – Valued at the net asset value (“NAV”) of shares held by the Plan at year end. NAV is derived by the quoted prices of underlying investments and are classified as Level 1. |
• | Common/collective trusts – are valued based on the NAV of units held by the Plan at year-end. Although the common/collective trusts are not available in an active market, the NAV of the units are approximated based on the quoted prices of the underlying investments that are traded in an active market. The NAV is |
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used as a practical expedient to estimate fair value and would not be used if it is determined to be probable that the Plan would sell these investments for an amount different from the reported NAV. These investments are not included in the fair value hierarchy.
The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Plan believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.
The following table sets forth by level, within the fair value hierarchy, the Plan’s investments at fair value as of December 31, 2017:
Asset Class________ | Level 1 | Level 2 | Total | ||||||||
Cash and cash equivalents | $ | 9,546 | $ | 2,475,611 | $ | 2,485,157 | |||||
Common stock | 1,732,670 | — | 1,732,670 | ||||||||
Mutual funds | 25,801,693 | — | 25,801,693 | ||||||||
Total assets in the fair value hierarchy | $ | 27,543,909 | $ | 2,475,611 | 30,019,520 | ||||||
Investments measured using net asset value per share practical expedient (a) | 23,731,188 | ||||||||||
Investments, at fair value | $ | 53,750,708 | |||||||||
(a) | In accordance with Subtopic 820-10, certain investments that were measured at net asset value per share practical expedient of the fund (or its equivalent) have not been classified in the fair value hierarchy. The amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the line items presented in the statement of net assets available for benefits. |
The following table sets forth by level, within the fair value hierarchy, the Plan’s investments at fair value as of December 31, 2016:
Asset Class________ | Level 1 | Level 2 | Total | ||||||||
Cash and cash equivalents | $ | 25,345 | $ | 2,316,615 | $ | 2,341,960 | |||||
Common stock | 1,672,605 | — | 1,672,605 | ||||||||
Mutual funds | 22,293,895 | — | 22,293,895 | ||||||||
Total assets in the fair value hierarchy | $ | 23,991,845 | $ | 2,316,615 | 26,308,460 | ||||||
Investments measured using net asset value per share practical expedient (a) | 22,553,703 | ||||||||||
Investments, at fair value | $ | 48,862,163 | |||||||||
__________
(a) | In accordance with Subtopic 820-10, certain investments that were measured at net asset value per share practical expedient of the fund (or its equivalent) have not been classified in the fair value hierarchy. The amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the line items presented in the statement of net assets available for benefits. |
The following table summarizes investments for which fair value is measured using the net asset value per share practical expedient as of December 31, 2017 and 2016. There are no participant redemption restrictions for these investments; the redemption notice period is applicable only to the Plan.
Fund | 2017 Fair Value | 2016 Fair Value | Unfunded Commitments | Redemption Frequency (if Currently Eligible) | Redemption Notice Period | |||||||||
Common/collective trusts | $ | 23,731,188 | $ | 22,553,703 | N/A | Daily | None | |||||||
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8. | NONEXEMPT TRANSACTIONS |
As reported on the supplemental schedule of delinquent participant contributions (Schedule H, Line 4a), certain Plan contributions were not remitted to the trust within the time frame specified by the Department of Labor's Regulation 29 (CFR 2510.3-102), thus constituting nonexempt transactions between the Plan and the Company for the year ended December 31, 2017.
******
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Plan Number: 005 | |
EIN: 06-0918165 | |
AB CAR RENTAL SERVICES, INC. | |
RETIREMENT SAVINGS PLAN FOR BARGAINING HOURLY EMPLOYEES | |
FORM 5500, SCHEDULE H, PART IV, LINE 4i - SCHEDULE OF ASSETS (HELD AT END OF YEAR) | |
AS OF DECEMBER 31, 2017 | |
Identity of Issue, Borrower, Lessor or Similar Party | Description of Investment | Number of Shares, Units or Par Value | Cost *** | Current Value | |||||||
* Avis Budget Group, Inc. | Common stock | 39,487 | $ | 1,732,670 | |||||||
Wells Fargo Stable Return Fund | Common/collective trust | 268,462 | 14,145,248 | ||||||||
State Street S&P 500 Index Fund | Common/collective trust | 221,867 | 5,498,753 | ||||||||
Northern Trust Extended Equity Market Fund | Common/collective trust | 14,355 | 1,914,136 | ||||||||
Oppenheimer International Growth Trust | Common/collective trust | 32,443 | 839,305 | ||||||||
Northern Trust Collective All Country World Ex-US Index Fund | Common/collective trust | 3,849 | 672,730 | ||||||||
Harding Loevner Emerging Markets Fund | Common/collective trust | 32,754 | 523,078 | ||||||||
BlackRock US Debt Index Fund | Common/collective trust | 6,476 | 137,938 | ||||||||
American Growth Fund of America | Registered investment fund | 109,581 | 5,423,172 | ||||||||
The Oakmark Equity and Income Fund | Registered investment fund | 149,424 | 4,809,948 | ||||||||
Federated Total Return Bond Fund | Registered investment fund | 406,515 | 4,431,019 | ||||||||
Harbor Small Capital Value Fund | Registered investment fund | 66,311 | 2,407,089 | ||||||||
Prudential Jennison Growth Fund | Registered investment fund | 56,913 | 2,216,206 | ||||||||
MFS Value Fund | Registered investment fund | 49,777 | 2,018,946 | ||||||||
Harbor International Fund | Registered investment fund | 25,588 | 1,727,710 | ||||||||
Deutsche Real Estate Fund | Registered investment fund | 50,397 | 1,026,086 | ||||||||
Vanguard Explorer Admiral Fund | Registered investment fund | 8,230 | 727,601 | ||||||||
Lord Abbett Bond Debenture Fund | Registered investment fund | 77,089 | 632,900 | ||||||||
Vanguard Inflation-Protected Securities Fund | Registered investment fund | 14,883 | 381,016 | ||||||||
* Various participants** | Participant loans | 3,289,216 | |||||||||
Certificates of Deposit | Cash and cash equivalents | 2,475,611 | |||||||||
Money Market Funds | Cash and cash equivalents | 9,546 | |||||||||
Total | $ | 57,039,924 | |||||||||
____________
* | Represents a permitted party-in-interest. |
** | Maturity dates range from January 2018 to October 2032. Interest rates range from 4.25% to 5.25%. |
*** | Cost information is not required for participant-directed investments. |
See Report of Independent Registered Public Accounting Firm.
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Plan Number: 005 | |
EIN: 06-0918165 | |
AB CAR RENTAL SERVICES, INC. | |
RETIREMENT SAVINGS PLAN FOR BARGAINING HOURLY EMPLOYEES | |
FORM 5500, SCHEDULE H, PART IV, LINE 4a - SCHEDULE OF DELINQUENT PARTICIPANT | |
CONTRIBUTIONS FOR THE YEAR ENDED DECEMBER 31, 2017 | |
Participant Contributions Transferred Late to Plan | Total that Constitute Nonexempt Prohibited Transactions | Total Fully Corrected Under VFCP and PTE 2002-51 | ||||||||||||||||
Contributions Not Corrected | Contributions Corrected Outside of VFCP | Contributions Pending Correction in VFCP | ||||||||||||||||
$ | 1,215,770 | $ | — | $ | — | $ | 342,789 | $ | 872,981 | |||||||||
Check here if Late Participant Loan Repayments are included: o | ||||||||||||||||||
See Report of Independent Registered Public Accounting Firm.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Trustees (or other persons who administer the employee benefit plan) have duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized.
AB Car Rental Services, Inc.
Retirement Savings Plan
for Bargaining Hourly Employees
By: /s/ Edward P. Linnen
Edward P. Linnen
Executive Vice President and
Chief Human Resources Officer
Avis Budget Group, Inc.
Date: June 27, 2018
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Exhibit 23.1
CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
We hereby consent to the incorporation by reference in the Registration Statements No. 333-114744 and No. 333-98933 on Form S-8 of our report dated June 27, 2018 relating to the AB Car Rental Services, Inc. Retirement Savings Plan For Bargaining Hourly Employees statements of net assets available for benefits as of December 31, 2017 and 2016 and the related statement of changes in net assets available for benefits for the year ended December 31, 2017, which appear in this Annual Report on Form 11-K.
/s/ CohnReznick LLP
Roseland, New Jersey
June 27, 2018
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