Segment Information

12 Months Ended

Dec. 31, 2019

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 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, gain on sale of equity method investment in China and income taxes. Net charges for unprecedented personal-injury legal matters and gain on sale of equity method investment in China are recorded within operating expenses in the Company’s Consolidated Statements of Operations. 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 Statements of Operations. The Company has revised its definition of Adjusted EBITDA to exclude the gain on sale of equity method investment in China. The Company did not revise prior years’ Adjusted EBITDA amounts 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.

Year Ended December 31, 2019



	Americas		International		Corporate and Other ^(a)			Total
Revenues	$	6,352	$	2,820	$	—		$	9,172
Vehicle depreciation and lease charges, net	1,462		601		—			2,063
Vehicle interest, net	284		60		—			344
Adjusted EBITDA	652		203		(67		)	788
Non-vehicle depreciation and amortization	161		94		8			263
Assets exclusive of assets under vehicle programs	6,226		2,995		90			9,311
Assets under vehicle programs	10,508		3,307		—			13,815
Capital expenditures (excluding vehicles)	162		62		26			250

__________


^(a)	Primarily represents unallocated corporate expenses and receivables from our former subsidiaries.

Year Ended December 31, 2018



	Americas		International		Corporate and Other ^(a)			Total
Revenues	$	6,186	$	2,938	$	—		$	9,124
Vehicle depreciation and lease charges, net	1,568		611		—			2,179
Vehicle interest, net	252		62		—			314
Adjusted EBITDA	558		287		(64		)	781
Non-vehicle depreciation and amortization	152		104		—			256
Assets exclusive of assets under vehicle programs	3,782		2,495		93			6,370
Assets under vehicle programs	9,670		3,109		—			12,779
Capital expenditures (excluding vehicles)	134		76		21			231

__________


^(a)	Primarily represents unallocated corporate expenses and receivables from our former subsidiaries.

Year Ended December 31, 2017



	Americas		International		Corporate and Other ^(a)			Total
Revenues	$	6,100	$	2,748	$	—		$	8,848
Vehicle depreciation and lease charges, net	1,671		550		—			2,221
Vehicle interest, net	226		60		—			286
Adjusted EBITDA	486		305		(56		)	735
Non-vehicle depreciation and amortization	168		91		—			259
Assets exclusive of assets under vehicle programs	3,388		2,353		79			5,820
Assets under vehicle programs	9,017		2,862		—			11,879
Capital expenditures (excluding vehicles)	122		62		13			197

__________


^(a)	Primarily represents unallocated corporate expenses and receivables from our former subsidiaries.

Provided below is a reconciliation of Adjusted EBITDA to income before income taxes.



		For the Year Ended December 31,
		2019			2018		2017
Adjusted EBITDA		$	788		$	781	$	735
Less: Non-vehicle related depreciation and amortization ^(a)		263			256		259
	Interest expense related to corporate debt, net	178			188		188
	Early extinguishment of corporate debt	12			19		3
	Restructuring and other related charges	80			22		63
	Transaction-related costs, net	10			20		23
	Non-operational charges related to shareholder activist activity ^(b)	2			9		—
	Impairment	—			—		2
	Charges for legal matter, net ^(c)	—			—		(14		)
	Gain on sale of equity method investment in China ^(c)	(44		)	—		—
Income before income taxes		$	287		$	267	$	211

__________


^(a)	Includes amortization of intangible assets recognized in purchase accounting of $56 million in 2019, $61 million in 2018 and $58 million in 2017.


^(b)	Reported within selling, general and administrative expenses in our Consolidated Statements of Operations.


^(c)	Reported within operating expenses in our Consolidated Statements of Operations.

The geographic segment information provided below is classified based on the geographic location of the Company’s subsidiaries.



	United States		All Other Countries		Total
2019
Revenues	$	5,867	$	3,305	$	9,172
Assets exclusive of assets under vehicle programs	5,830		3,481		9,311
Assets under vehicle programs	9,824		3,991		13,815
Net long-lived assets	1,536		1,155		2,691

2018
Revenues	$	5,708	$	3,416	$	9,124
Assets exclusive of assets under vehicle programs	3,494		2,876		6,370
Assets under vehicle programs	9,021		3,758		12,779
Net long-lived assets	1,476		1,177		2,653

2017
Revenues	$	5,629	$	3,219	$	8,848
Assets exclusive of assets under vehicle programs	3,069		2,751		5,820
Assets under vehicle programs	8,192		3,687		11,879
Net long-lived assets	1,451		1,176		2,627