Segment Information

9 Months Ended

Sep. 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 September 30,
			2019					2018
			Revenues		Adjusted EBITDA			Revenues		Adjusted EBITDA
Americas			$	1,868	$	321		$	1,844	$	313
International			885		169			934		178
Corporate and Other ^(a)			—		(19		)	—		(15		)
	Total Company		$	2,753	$	471		$	2,778	$	476

Reconciliation of Adjusted EBITDA to income before income taxes
					2019					2018
Adjusted EBITDA					$	471				$	476
Less:		Non-vehicle related depreciation and amortization			62					62
		Interest expense related to corporate debt, net:
		Interest expense			49					44
		Early extinguishment of debt			10					—
		Restructuring and other related charges			22					4
		Transaction-related costs, net			—					11
Income before income taxes					$	328				$	355

__________


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



			Nine Months Ended September 30,
			2019					2018
			Revenues		Adjusted EBITDA			Revenues		Adjusted EBITDA
Americas			$	4,822	$	508		$	4,782	$	435
International			2,188		187			2,292		252
Corporate and Other ^(a)			—		(50		)	—		(48		)
	Total Company		$	7,010	$	645		$	7,074	$	639

Reconciliation of Adjusted EBITDA to income before income taxes
					2019					2018
Adjusted EBITDA					$	645				$	639
Less:		Non-vehicle related depreciation and amortization			195					190
		Interest expense related to corporate debt, net:
		Interest expense			139					139
		Early extinguishment of debt			10					5
		Restructuring and other related charges			66					14
		Transaction-related costs, net			6					18
		Non-operational charges related to shareholder activist activity			—					9
		Gain on sale of equity method investment in Anji			(44		)			—
Income before income taxes					$	273				$	264

__________


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

As of September 30, 2019 and December 31, 2018, Americas’ segment assets exclusive of assets under vehicle programs were approximately $5.8 billion and $3.8 billion, respectively, and International segment assets exclusive of assets under vehicle programs were approximately $2.8 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 September 30, 2019 and December 31, 2018, Americas’ assets under vehicle programs were approximately $10.8 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.