Segment Information

6 Months Ended

Jun. 30, 2013

Segment Reporting [Abstract]

Segment Information

Segment Information

The reportable segments presented below represent the Company’s operating segments for which separate financial information is available and is utilized on a regular basis by its chief operating decision maker, the Company’s chief executive officer, to assess performance and to allocate resources. In identifying its reportable segments, the Company also considers the nature of services provided by its operating segments, the geographical areas in which the segments operate and other relevant factors. The Company aggregates certain operating segments into its reportable segments. Management evaluates the operating results of each of its reportable segments based upon revenue and “Adjusted EBITDA”, which is defined as income from continuing operations before non-vehicle related depreciation and amortization, any impairment charge, transaction-related costs, non-vehicle related interest and income taxes. The Company’s presentation of Adjusted EBITDA may not be comparable to similarly-titled measures used by other companies.

				Three Months Ended June 30,
				2013					2012
				Revenues		Adjusted EBITDA			Revenues		Adjusted EBITDA
North America				$	1,292	$	114		$	1,184	$	184
International				608		53			579		59
Truck Rental				102		8			103		17
Corporate and Other (a)				—		(11		)	—		(6		)
	Total Company (b)			$	2,002	164			$	1,866	254
Less:		Non-vehicle related depreciation and amortization				37					29
		Interest expense related to corporate debt, net:
			Interest expense			55					69
			Early extinguishment of debt			91					23
		Transaction-related costs (c)				19					4
Income (loss) before income taxes						$	(38	)			$	129

__________

^(a) Includes unallocated corporate overhead and the elimination of transactions between segments.

^(b) Adjusted EBITDA for the three months ended June 30, 2013 and 2012, includes $15 million and $12 million, respectively, of restructuring expense.

^(c) During the three months ended June 30, 2013, the Company incurred $19 million in transaction-related costs related to the integration of the operations of Avis Europe and costs related to the acquisition and integration of Zipcar. During the three months ended June 30, 2012, the Company incurred $4 million in transaction-related costs related to the integration of the operations of Avis Europe.

				Six Months Ended June 30,
				2013					2012
				Revenues		Adjusted EBITDA			Revenues		Adjusted EBITDA
North America				$	2,392	$	205		$	2,222	$	277
International				1,123		67			1,089		81
Truck Rental				178		(2		)	177		18
Corporate and Other (a)				—		(23		)	1		(10		)
	Total Company (b)			$	3,693	247			$	3,489	366
Less:		Non-vehicle related depreciation and amortization				71					62
		Interest expense related to corporate debt, net:
			Interest expense			114					142
			Early extinguishment of debt			131					50
		Transaction-related costs (c)				26					10
Income (loss) before income taxes						$	(95	)			$	102

__________

^(a)  Includes unallocated corporate overhead and the elimination of transactions between segments.

^(b)  Adjusted EBITDA for the six months ended June 30, 2013 and 2012, includes $25 million and $19 million, respectively, of restructuring expense.

^(c)  During the six months ended June 30, 2013, the Company incurred $26 million in transaction-related costs related to the integration of the operations of Avis Europe and costs related to the acquisition and integration of Zipcar. During the six months ended June 30, 2012, the Company incurred $10 million in transaction-related costs related to the integration of the operations of Avis Europe.

Since December 31, 2012, there have been no significant changes in segment assets other than in the Company’s North America segment. As of June 30, 2013 and December 31, 2012, North America segment assets under vehicle programs were approximately $9.8 billion and $7.4 billion, respectively, and assets exclusive of assets under vehicle programs were approximately $3.6 billion and $3.1 billion, respectively.