Schedule of Segment Reporting Information, by Segment |
Revenues and adjusted pre-tax income (loss) by segment and the reconciliation to consolidated amounts are summarized below. | | | | | | | | | | | | | | | | | | Three Months Ended September 30, | | Revenues | | Adjusted Pre-Tax Income (Loss) | (In millions) | 2015 | | 2014 | | 2015 | | 2014 | U.S. Car Rental | $ | 1,739 |
| | $ | 1,768 |
| | $ | 246 |
| | $ | 209 |
| International Car Rental | 687 |
| | 795 |
| | 151 |
| | 136 |
| Worldwide Equipment Rental | 401 |
| | 413 |
| | 54 |
| | 79 |
| All Other Operations | 149 |
| | 145 |
| | 18 |
| | 17 |
| Total reportable segments | $ | 2,976 |
| | $ | 3,121 |
| | 469 |
| | 441 |
| Corporate (1) | | | | | (110 | ) | | (119 | ) | Consolidated adjusted pre-tax income (loss) | | | | | 359 |
| | 322 |
| Adjustments: | | | | | | | | Acquisition accounting(2) | | | | | (32 | ) | | (32 | ) | Debt-related charges(3) | | | | | (15 | ) | | (13 | ) | Restructuring and restructuring related charges(4) | | | | | (18 | ) | | (55 | ) | Acquisition related costs and charges(5) | | | | | — |
| | (1 | ) | Equipment rental spin-off costs(6) | | | | | (6 | ) | | (14 | ) | Impairment charges and asset write-downs(7) | | | | | (6 | ) | | — |
| Integration expenses(8) | | | | | (1 | ) | | (1 | ) | Relocation costs(9) | | | | | — |
| | (3 | ) | Other(10) | | | | | 26 |
| | — |
| Income (loss) before income taxes | | | | | $ | 307 |
| | $ | 203 |
|
| | | | | | | | | | | | | | | | | | Nine Months Ended September 30, | | Revenues | | Adjusted Pre-Tax Income (Loss) | (In millions) | 2015 | | 2014 | | 2015 | | 2014 | U.S. Car Rental | $ | 4,873 |
| | $ | 4,989 |
| | $ | 509 |
| | $ | 515 |
| International Car Rental | 1,679 |
| | 1,918 |
| | 203 |
| | 154 |
| Worldwide Equipment Rental | 1,131 |
| | 1,155 |
| | 130 |
| | 197 |
| All Other Operations | 439 |
| | 425 |
| | 52 |
| | 47 |
| Total reportable segments | $ | 8,122 |
| | $ | 8,487 |
| | 894 |
| | 913 |
| Corporate (1) | | | | | (357 | ) | | (351 | ) | Consolidated adjusted pre-tax income (loss) | | | | | 537 |
| | 562 |
| Adjustments: | | | | | | | | Acquisition accounting(2) | | | | | (94 | ) | | (98 | ) | Debt-related charges(3) | | | | | (47 | ) | | (38 | ) | Restructuring and restructuring related charges(4) | | | | | (87 | ) | | (126 | ) | Acquisition related costs and charges(5) | | | | | — |
| | (10 | ) | Equipment rental spin-off costs(6) | | | | | (23 | ) | | (27 | ) | Impairment charges and asset write-downs(7) | | | | | (15 | ) | | (10 | ) | Integration expenses(8) | | | | | (5 | ) | | (7 | ) | Relocation costs(9) | | | | | (4 | ) | | (7 | ) | Other(10) | | | | | 29 |
| | 22 |
| Income (loss) before income taxes | | | | | $ | 291 |
| | $ | 261 |
|
| | (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 other 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 and premiums. |
| | (4) | Represents expenses incurred under restructuring actions as defined in U.S. GAAP. For further information on restructuring costs, see Note 8, "Restructuring." Also represents incremental costs incurred directly supporting business transformation initiatives. Such costs include transition costs incurred in connection with 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, consulting costs and legal fees related to the accounting review and investigation and costs associated with the separation of certain executives. |
| | (5) | Represents costs related to acquisitions and strategic initiatives. |
| | (6) | Represents expenses associated with the anticipated HERC spin-off transaction announced in March 2014. |
| | (7) | In 2015, primarily represents first quarter impairments of the former Dollar Thrifty headquarters and a corporate asset and a third quarter impairment of a building in the U.S. Car Rental segment. In 2014, primarily represents a second quarter write-down of assets associated with a terminated business relationship. |
| | (8) | Primarily represents Dollar Thrifty integration related expenses. |
| | (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) | Includes miscellaneous non-recurring or non-cash items. For 2015, primarily represents the gain on the sale of common stock of CAR Inc, offset by a legal reserve in the International Car Rental segment. For 2014, primarily represents a litigation settlement received in relation to a class action lawsuit filed against an original equipment manufacturer stemming from recalls of their vehicles in previous years. |
Depreciation of revenue earning equipment and lease charges, net | | | | | | | | | | | | | | | | | | Three Months Ended September 30, | | Nine Months Ended September 30, | (In millions) | 2015 | | 2014 | | 2015 | | 2014 | U.S. Car Rental | $ | 399 |
| | $ | 409 |
| | $ | 1,200 |
| | $ | 1,224 |
| International Car Rental | 114 |
| | 143 |
| | 310 |
| | 381 |
| Worldwide Equipment Rental | 86 |
| | 78 |
| | 243 |
| | 235 |
| All Other Operations | 118 |
| | 116 |
| | $ | 349 |
| | 340 |
| Total | $ | 717 |
| | $ | 746 |
| | $ | 2,102 |
| | $ | 2,180 |
|
Total assets | | | | | | | | | (In millions) | September 30, 2015 | | December 31, 2014 | U.S. Car Rental | $ | 13,828 |
| | $ | 13,712 |
| International Car Rental | 3,853 |
| | 3,358 |
| Worldwide Equipment Rental | 4,021 |
| | 3,836 |
| All Other Operations | 1,507 |
| | 1,458 |
| Corporate | 1,360 |
| | 1,621 |
| Total | $ | 24,569 |
| | $ | 23,985 |
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