Segment Information

6 Months Ended

Jun. 30, 2021

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 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 and other legal matters, net, non-operational charges related to shareholder activist activity, which include third party advisory, legal and other professional service fees, gain on sale of equity method investment in China, COVID-19 charges and income taxes. COVID-19 charges include unusual, direct and incremental costs due to the COVID-19 pandemic such as minimum annual guaranteed rent in excess of concession fees for the period, overflow parking for idle vehicles and related shuttling costs, incremental cleaning supplies to sanitize vehicles and facilities, and losses associated with vehicles damaged in overflow parking lots, net of insurance proceeds. The Company’s presentation of Adjusted EBITDA may not be comparable to similarly-titled measures used by other companies.

			Three Months Ended June 30,
			2021				2020
			Revenues		Adjusted EBITDA		Revenues		Adjusted EBITDA
Americas			$	1,974	$	634	$	565	$	(233)
International			397		8		195		(140)
Corporate and Other (a)			—		(18)		—		(9)
	Total Company		$	2,371	$	624	$	760	$	(382)
Reconciliation of Adjusted EBITDA to income (loss) before income taxes:
					2021				2020
Adjusted EBITDA					$	624			$	(382)
Less:		Non-vehicle related depreciation and amortization (b)			67				71
		Interest expense related to corporate debt, net:
		Interest expense			59				51
		Early extinguishment of debt			—				3
		Restructuring and other related charges			22				28
		Transaction-related costs, net			1				1
		COVID-19 charges (c)			—				73
		Unprecedented personal-injury and other legal    matters, net (d)			(11)				—
Income (loss) before income taxes					$	486			$	(609)

__________

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

(b)For the three months ended June 30, 2021 consists of $3 million within operating expenses and $2 million within selling, general and administrative expenses related to cloud computing costs.

(c)The following table presents the unusual, direct and incremental costs due to the COVID-19 pandemic.

	2021		2020
Minimum annual guaranteed rent in excess of concession fees, net	$	(3)	$	30
Vehicles damaged in overflow parking lots, net of insurance proceeds	2		28
Incremental cleaning supplies to sanitize vehicles and facilities, and over flow parking for idle vehicles	—		15
Other charges	1		—
Operating expenses	$	—	$	72
Selling, general and administrative expenses	$	—	$	1

(d)Reported within operating expenses.

			Six Months Ended June 30,
			2021				2020
			Revenues		Adjusted EBITDA		Revenues		Adjusted EBITDA
Americas			$	3,054	$	742	$	1,822	$	(263)
International			689		(42)		691		(180)
Corporate and Other (a)			—		(29)		—		(26)
	Total Company		$	3,743	$	671	$	2,513	$	(469)
Reconciliation of Adjusted EBITDA to income (loss) before income taxes:
					2021				2020
Adjusted EBITDA					$	671			$	(469)
Less:		Non-vehicle related depreciation and amortization (b)			135				140
		Interest expense related to corporate debt, net:
		Interest expense			120				99
		Early extinguishment of debt			129				7
		Restructuring and other related charges			42				72
		COVID-19 charges (c)			18				80
		Transaction-related costs, net			2				3
		Non-operational charges related to shareholder    activist activity (d)			—				4
		Unprecedented personal-injury and other legal    matters, net (e)			(11)				—
Income (loss) before income taxes					$	236			$	(874)

__________

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

(b)For the three and six months ended June 30, 2021 consists of $3 million within operating expenses and $2 million within selling, general and administrative expenses related to cloud computing costs.

(c)The following table presents the unusual, direct and incremental costs due to the COVID-19 pandemic.

	2021		2020
Minimum annual guaranteed rent in excess of concession fees, net	$	16	$	30
Vehicles damaged in overflow parking lots, net of insurance proceeds	(4)		33
Incremental cleaning supplies to sanitize vehicles and facilities, and    over flow parking for idle vehicles	—		17
Other charges	6		—
Operating expenses	$	17	$	79
Selling, general and administrative expenses	$	1	$	1

(d)Reported within selling, general and administrative expenses.

(e)Reported within operating expenses.

Since December 31, 2020, there have been no significant changes in segment assets exclusive of assets under vehicle programs. As of June 30, 2021 and December 31, 2020, Americas’ segment assets under vehicle programs were approximately $10.3 billion and $7.2 billion, respectively, and International segment assets under vehicle programs were approximately $2.5 billion and $2.0 billion, respectively. The changes in assets under vehicle programs is primarily due to the increase in the size of our vehicle rental fleet to meet increases in rental demand.