Segment Information

9 Months Ended

Sep. 30, 2014

Segment Reporting [Abstract]

Segment Information

Segment Information

The Company’s chief operating decision maker assesses performance and allocates resources based upon the separate financial information from the Company’s operating segments. In identifying its reportable segments, the Company considered the nature of services provided, the geographical areas in which the segments operated and other relevant factors. The Company has aggregated certain of its operating segments into its reportable segments.

Management evaluates the operating results of each of its reportable segments based upon revenue and “Adjusted EBITDA,” which the Company defines as income from continuing operations before non-vehicle related depreciation and amortization, any impairment charge, restructuring expense, early extinguishment of debt costs, non-vehicle related interest, transaction-related costs 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 September 30,
				2014					2013
				Revenues		Adjusted EBITDA			Revenues (a)		Adjusted EBITDA (b)
North America				$	1,623	$	255		$	1,500	$	226
International				815		160			786		149
Truck Rental				104		18			109		19
Corporate and Other (c)				—		(16		)	—		(11		)
	Total Company			$	2,542	417			$	2,395	383
Less:		Non-vehicle related depreciation and amortization				46					39
		Interest expense related to corporate debt, net:
			Interest expense			50					57
			Early extinguishment of debt			—					—
		Transaction-related costs				7					10
		Restructuring expense				8					14
		Impairment				—					33
Income before income taxes						$	306				$	230

__________

^(a) Previously reported amounts were recast for a change in the Company’s reportable segments, decreasing North America revenues and increasing International revenues by $13 million in the three months ended September 30, 2013.

^(b)  Amounts reflect a revision to the definition of Adjusted EBITDA to exclude restructuring expense, which resulted in an increase in Adjusted EBITDA in North America, International and Truck Rental of $3 million, $5 million and $6 million, respectively, in the three months ended September 30, 2013. The change in the Company’s reportable segments had no effect on Adjusted EBITDA for the three months ended September 30, 2013.

^(c)  Includes unallocated corporate overhead which is not attributable to a particular segment.

				Nine Months Ended September 30,
				2014					2013
				Revenues		Adjusted EBITDA			Revenues (a)		Adjusted EBITDA (b)
North America				$	4,286	$	526		$	3,877	$	434
International				2,033		234			1,923		224
Truck Rental				279		29			287		31
Corporate and Other (c)				—		(42		)	—		(35		)
	Total Company			$	6,598	747			$	6,087	654
Less:		Non-vehicle related depreciation and amortization				132					109
		Interest expense related to corporate debt, net:
			Interest expense			161					170
			Early extinguishment of debt			56					131
		Transaction-related costs				23					37
		Restructuring expense				16					39
		Impairment				—					33
Income before income taxes						$	359				$	135

__________

^(a)  Previously reported amounts were recast for a change in the Company’s reportable segments, decreasing North America revenues and increasing International revenues by $28 million in the nine months ended September 30, 2013.

^(b)  Amounts reflect the revised definition of Adjusted EBITDA to exclude restructuring expense, which resulted in an increase in Adjusted EBITDA in North America, International and Truck Rental of $6 million, $14 million and $19 million, respectively, and a change in the Company’s reportable segments, which resulted in an increase in North America Adjusted EBITDA and a decrease in International Adjusted EBITDA by $1 million in the nine months ended September 30, 2013.

^(c)  Includes unallocated corporate overhead which is not attributable to a particular segment.

Since December 31, 2013, there have been no significant changes in segment assets other than in the Company’s North America and International segment assets under vehicle programs. As of September 30, 2014 and December 31, 2013, North America assets under vehicle programs were approximately $9.6 billion and $7.9 billion, respectively, and International assets under vehicle programs were approximately $2.6 billion and $2.2 billion, respectively.