Segment Information

6 Months Ended

Jun. 30, 2019

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 (loss) 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, gain on sale of equity method investment in Anji and income taxes. Net charges for unprecedented personal-injury legal matters and gain on sale of equity method investment in Anji are recorded within operating expenses in the Company’s Consolidated Condensed Statement of Comprehensive Income. 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 has revised the definition of Adjusted EBITDA to exclude the gain on sale of equity method investment in Anji. The Company did not revise prior years’ Adjusted EBITDA because there were no gains similar in nature to this gain. The Company’s presentation of Adjusted EBITDA may not be comparable to similarly-titled measures used by other companies.



			Three Months Ended June 30,
			2019					2018
			Revenues		Adjusted EBITDA			Revenues		Adjusted EBITDA
Americas			$	1,627	$	152		$	1,590	$	107
International			710		39			738		71
Corporate and Other ^(a)			—		(16		)	—		(17		)
	Total Company		$	2,337	$	175		$	2,328	$	161

Reconciliation of Adjusted EBITDA to income before income taxes
					2019					2018
Adjusted EBITDA					$	175				$	161
Less:		Non-vehicle related depreciation and amortization			66					67
		Interest expense related to corporate debt, net			48					49
		Restructuring and other related charges			23					4
		Transaction-related costs, net			1					3
		Gain on sale of equity method investment in Anji			(44		)			—
Income before income taxes					$	81				$	38

__________


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



			Six Months Ended June 30,
			2019					2018
			Revenues		Adjusted EBITDA			Revenues		Adjusted EBITDA
Americas			$	2,954	$	187		$	2,938	$	122
International			1,303		18			1,358		74
Corporate and Other ^(a)			—		(31		)	—		(33		)
	Total Company		$	4,257	$	174		$	4,296	$	163

Reconciliation of Adjusted EBITDA to loss before income taxes
					2019					2018
Adjusted EBITDA					$	174				$	163
Less:		Non-vehicle related depreciation and amortization			133					128
		Interest expense related to corporate debt, net:
		Interest expense			90					95
		Early extinguishment of debt			—					5
		Restructuring and other related charges			44					10
		Transaction-related costs, net			6					7
		Non-operational charges related to shareholder activist activity			—					9
		Gain on sale of equity method investment in Anji			(44		)			—
Loss before income taxes					$	(55	)			$	(91	)

__________


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

As of June 30, 2019 and December 31, 2018, Americas’ segment assets exclusive of assets under vehicle programs were approximately $5.9 billion and $3.8 billion, respectively, and International segment assets exclusive of assets under vehicle programs were approximately $3.0 billion and $2.5 billion, respectively. The increases in assets exclusive of assets under vehicle programs is primarily due to the adoption of ASU 2016-02 (see Note 1–Basis of Presentation).

As of June 30, 2019 and December 31, 2018, Americas’ assets under vehicle programs were approximately $11.8 billion and $9.7 billion, respectively, and International assets under vehicle programs were approximately $3.6 billion and $3.1 billion, respectively. The increases in assets under vehicle programs is primarily due to seasonality.