XML 73 R43.htm IDEA: XBRL DOCUMENT v3.2.0.727
Segment Information (Tables)
 12 Months Ended
Dec. 31, 2014
Segment Reporting [Abstract]  
Summary of contribution of reportable segments to revenues and adjusted pre-tax income and the reconciliation to consolidated amounts
The operations within major geographic areas are summarized below:
 
 
Years ended December 31,
(In millions)
 
2014
 
2013
(As Restated)
 
2012
(As Restated)
Revenues
 
 
 
 
 
 
United States
 
$
8,158

 
$
7,921

 
$
6,310

International
 
2,888

 
2,854

 
2,703

Total
 
$
11,046

 
$
10,775

 
$
9,013

 
 
As of December 31,
(In millions)
 
2014
 
2013
(As Restated)
Total assets at end of year
 
 
 
 
United States
 
$
19,077

 
$
19,288

International
 
4,908

 
5,135

Total
 
$
23,985

 
$
24,423

Revenue earning equipment, net, at end of year
 
 
 
 
United States
 
$
11,235

 
$
11,608

International
 
2,418

 
2,583

Total
 
$
13,653

 
$
14,191

Property and equipment, net, at end of year
 
 
 
 
United States
 
$
1,118

 
$
1,066

International
 
204

 
219

Total
 
$
1,322

 
$
1,285


(a)
The following table reconciles adjusted pre-tax income to income before income taxes for the years ended December 31, 2014, 2013 and 2012:
 
Years Ended December 31,
(In millions)
2014
 
2013
(As Restated)
 
2012
(As Restated)
Adjusted pre-tax income (loss):
 
 
 
 
 
U.S. car rental
$
387

 
$
1,033

 
$
813

International car rental
144

 
134

 
83

Worldwide equipment rental
258

 
301

 
216

All other operations
62

 
58

 
47

Total reportable segments
851

 
1,526

 
1,159

Corporate (1)
(448
)
 
(430
)
 
(343
)
Consolidated adjusted pre-tax income (loss)
403

 
1,096

 
816

Adjustments:
 
 
 
 
 
Acquisition accounting(2)
(132
)
 
(132
)
 
(110
)
Debt-related charges(3)
(53
)
 
(68
)
 
(84
)
Restructuring charges(4)
(56
)
 
(77
)
 
(38
)
Restructuring related charges(5)
(103
)
 
(22
)
 
(11
)
Acquisition related costs and charges(6)
(10
)
 
(19
)
 
(164
)
Integration expenses(7)
(9
)
 
(43
)
 
—

Equipment Rental spin-off costs(8)
(39
)
 
—

 
—

Relocation costs(9)
(9
)
 
(7
)
 
—

Premiums paid on debt(10)
—

 
(29
)
 
—

Loss on extinguishment of debt(11)
(1
)
 
(35
)
 
—

Impairment charges and asset write-downs(12)
(34
)
 
(40
)
 
—

Other(13)
20

 
(21
)
 
(44
)
Income (loss) before income taxes
$
(23
)
 
$
603

 
$
365

(1)
Represents general corporate expenses, certain interest expense (including net interest on corporate debt), as well as other business activities.
(2)
Represents the increase in amortization of other intangible assets, depreciation of property and equipment and accretion of revalued liabilities relating to acquisition accounting.
(3)
Represents debt-related charges relating to the amortization of deferred debt financing costs and debt discounts.
(4)
Represents expenses incurred under restructuring actions as defined in U.S. GAAP. For further information on restructuring costs, see Note 15 "Restructuring," to the Notes to our consolidated financial statements.
(5)
Represents incremental costs incurred directly supporting the Company's business transformation initiatives. Such costs include transition costs incurred in connection with its business process outsourcing arrangements and incremental costs incurred to facilitate business process re-engineering initiatives that involve significant organization redesign and extensive operational process changes.
(6)
In 2012, primarily represents Dollar Thrifty acquisition related expenses, change in control expenses, 'Day-1' compensation expenses and other adjustments related to the Dollar Thrifty acquisition, loss on the Advantage divestiture, expenses related to additional required divestitures and costs associated with the Dollar Thrifty acquisition, pre-acquisition interest and commitment fee expenses for interim financing associated with the Dollar Thrifty acquisition and a gain on the investment in Dollar Thrifty stock.
(7)
Primarily represents Dollar Thrifty integration related expenses.
(8)
Represents expense associated with the anticipated HERC spin-off transaction of which $28 million were incurred by HERC and $11 million were incurred by Corporate.
(9)
Represents non-recurring costs incurred in connection with the relocation of the Company's corporate headquarters to Estero, Florida that were not included in restructuring expenses. Such expenses primarily include duplicate facility rent, certain moving expenses, and other costs that are direct and incremental due to the relocation.
(10)
In 2013, represents premiums paid to redeem the Company's 8.50% Former European Fleet Notes.
(11)
In 2013, represents extinguishment of debt for Senior Convertible Notes.
(12)
In 2014, represents impairments related to the Company's former corporate headquarters building in New Jersey, HERC revenue earning equipment held for sale and assets related to a contract termination. In 2013, primarily related to a change in the carrying value of the vehicles subleased to FSNA and its subsidiary, Simply Wheelz.
(13)
In 2014, primarily comprised of a $19 million litigation settlement received in relation to a class action lawsuit filed against an original equipment manufacturer. In 2013, primarily represents cash premiums of $12 million associated with the conversion of the Senior Convertible Notes and $5 million of depreciation expense related to HERC. In 2012, primarily represents expenses related to the withdrawal from a multiemployer pension plan, litigation accrual and expenses associated with the impact of Hurricane Sandy.
The contribution of the Company's reportable segments to revenues and adjusted pre-tax income (loss) and the reconciliation to consolidated amounts are summarized below.
 
 
Years ended December 31,
(In millions)
 
2014
 
2013
(As Restated)
 
2012
(As Restated)
Revenues
 
 
 
 
 
 
U.S. car rental
 
$
6,471

 
$
6,331

 
$
4,888

International car rental
 
2,436

 
2,378

 
2,265

Worldwide equipment rental
 
1,571

 
1,539

 
1,382

All other operations
 
568

 
527

 
478

Total
 
$
11,046

 
$
10,775

 
$
9,013

Adjusted pre-tax income(a)
 
 
 
 
 
 
U.S. car rental
 
$
387

 
$
1,033

 
$
813

International car rental
 
144

 
134

 
83

Worldwide equipment rental
 
258

 
301

 
216

All other operations
 
62

 
58

 
47

Corporate
 
(448
)
 
(430
)
 
(343
)
Total
 
$
403

 
$
1,096

 
$
816

Depreciation of revenue earning equipment and lease charges, net
 
 
 
 
 
 
U.S. car rental
 
$
1,758

 
$
1,281

 
$
945

International car rental
 
492

 
528

 
524

Worldwide equipment rental
 
329

 
299

 
271

All other operations
 
455

 
425

 
388

Total
 
$
3,034

 
$
2,533

 
$
2,128

Depreciation and amortization, non-fleet assets
 
 
 
 
 
 
U.S. car rental
 
$
222

 
$
207

 
$
133

International car rental
 
41

 
37

 
33

Worldwide equipment rental
 
75

 
74

 
75

All other operations
 
11

 
10

 
10

Corporate
 
17

 
11

 
10

Total
 
$
366

 
$
339

 
$
261

Interest expense, net
 
 
 
 
 
 
U.S. car rental
 
$
172

 
$
187

 
$
177

International car rental
 
95

 
113

 
122

Worldwide equipment rental
 
53

 
46

 
52

All other operations
 
12

 
14

 
14

Corporate
 
316

 
347

 
282

Total
 
$
648

 
$
707

 
$
647

 
 
Years ended December 31,
(In millions)
 
2014
 
2013
(As Restated)
 
2012
(As Restated)
Revenue earning equipment and capital assets, non-fleet
 
 
 
 
 
 
U.S. car rental:
 
 
 
 
 
 
Expenditures
 
$
(6,175
)
 
$
(6,242
)
 
$
(5,258
)
Proceeds from disposals
 
4,530

 
4,385

 
4,260

Net expenditures
 
$
(1,645
)
 
$
(1,857
)
 
$
(998
)
International car rental:
 
 
 
 
 
 
Expenditures
 
$
(3,165
)
 
$
(2,640
)
 
$
(2,642
)
Proceeds from disposals
 
2,531

 
2,251

 
2,110

Net expenditures
 
$
(634
)
 
$
(389
)
 
$
(532
)
Worldwide equipment rental:
 
 
 
 
 
 
Expenditures
 
$
(658
)
 
$
(694
)
 
$
(788
)
Proceeds from disposals
 
197

 
141

 
190

Net expenditures
 
$
(461
)
 
$
(553
)
 
$
(598
)
All other operations:
 
 
 
 
 
 
Expenditures
 
$
(1,611
)
 
$
(1,012
)
 
$
(1,199
)
Proceeds from disposals
 
1,010

 
556

 
688

Net expenditures
 
$
(601
)
 
$
(456
)
 
$
(511
)
Corporate:
 
 
 
 
 
 
Expenditures
 
$
(54
)
 
$
(28
)
 
$
(22
)
Proceeds from disposals
 
34

 
4

 
—

Net expenditures
 
$
(20
)
 
$
(24
)
 
$
(22
)
 
 
As of December 31,
(In millions)
 
2014
 
2013
(As Restated)
Total assets at end of year
 
 
 
 
U.S. car rental
 
$
13,712

 
$
14,312

International car rental
 
3,358

 
3,551

Worldwide equipment rental
 
3,836

 
3,825

All other operations
 
1,458

 
1,336

Corporate
 
1,621

 
1,399

Total
 
$
23,985

 
$
24,423

Revenue earning equipment, net, at end of year
 
 
 
 
U.S. car rental
 
$
8,070

 
$
8,629

International car rental
 
1,904

 
2,047

Worldwide equipment rental
 
2,442

 
2,416

All other operations
 
1,237

 
1,099

Total
 
$
13,653

 
$
14,191

Property and equipment, net, at end of year
 
 
 
 
U.S. car rental
 
$
789

 
$
813

International car rental
 
155

 
173

Worldwide equipment rental
 
265

 
258

All other operations
 
6

 
4

Corporate
 
107

 
37

Total
 
$
1,322

 
$
1,285