Segment Information

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

Management evaluates the operating results of each of its reportable segments based upon revenues and “Adjusted EBITDA,” which the Company defines as income from continuing operations before non-vehicle related depreciation and amortization, any impairment charges, restructuring and other related charges, early extinguishment of debt costs, non-vehicle related interest, transaction-related costs, net charges for unprecedented personal-injury legal matters, non-operational charges related to shareholder activist activity and income taxes. Net charges for unprecedented personal-injury legal matters are recorded within operating expenses in the Company’s Consolidated Condensed Statement of Comprehensive Income. The Company has revised its definition of Adjusted EBITDA to exclude non-operational charges related to shareholder activist activity. Non-operational charges related to shareholder activist activity include third party advisory, legal and other professional service fees and are recorded within selling, general and administrative expenses in the Company’s Consolidated Condensed Statement of Comprehensive Income. The Company did not revise prior years’ Adjusted EBITDA amounts because there were no costs similar in nature to these costs. The Company’s presentation of Adjusted EBITDA may not be comparable to similarly-titled measures used by other companies.



			Three Months Ended September 30,
			2018					2017
			Revenues		Adjusted EBITDA			Revenues		Adjusted EBITDA
Americas			$	1,844	$	313		$	1,839	$	303
International			934		178			913		194
Corporate and Other ^(a)			—		(15		)	—		(15		)
	Total Company		$	2,778	$	476		$	2,752	$	482

Reconciliation of Adjusted EBITDA to income before income taxes
					2018					2017
Adjusted EBITDA					$	476				$	482
Less:		Non-vehicle related depreciation and amortization			62					66
		Interest expense related to corporate debt, net			44					45
		Transaction-related costs, net			11					—
		Restructuring and other related charges			4					7
Income before income taxes					$	355				$	364

__________


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



			Nine Months Ended September 30,
			2018					2017
			Revenues		Adjusted EBITDA			Revenues		Adjusted EBITDA
Americas			$	4,782	$	435		$	4,718	$	379
International			2,292		252			2,111		260
Corporate and Other ^(a)			—		(48		)	—		(44		)
	Total Company		$	7,074	$	639		$	6,829	$	595

Reconciliation of Adjusted EBITDA to income before income taxes
					2018					2017
Adjusted EBITDA					$	639				$	595
Less:		Non-vehicle related depreciation and amortization			190					194
		Interest expense related to corporate debt, net:
		Interest expense			139					142
		Early extinguishment of debt			5					3
		Transaction-related costs, net			18					8
		Restructuring and other related charges			14					52
		Non-operational charges related to shareholder activist activity			9					—
		Charges for legal matter, net			—					(14		)
Income before income taxes					$	264				$	210

__________


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

Since December 31, 2017, there have been no significant changes in segment assets exclusive of assets under vehicle programs. As of September 30, 2018 and December 31, 2017, Americas assets under vehicle programs were approximately $9.9 billion and $9.0 billion, respectively, due to seasonality. As of September 30, 2018 and December 31, 2017, International assets under vehicle programs were approximately $3.7 billion and $2.9 billion, respectively, due to seasonality.