Avis 2008 Annual Report Download - page 34

We have responded to the NYSE with notice of our intent to cure the current deficiency, in which we noted that if we do not expect that the price
condition will be cured at the expiration of the six-month cure period, we will consider a reverse stock split that will enable us to be in
compliance with the price condition.
Not applicable.
ITEM 2. PROPERTIES
Our principal executive offices are located at leased offices at 6 Sylvan Way, Parsippany, New Jersey 07054 pursuant to a lease expiring in
2023. Additional corporate functions are also conducted at leased offices at 10 Sylvan Way and Three Century Drive in Parsippany, New Jersey
pursuant to leases expiring in 2011 and 2018, respectively. We also own a facility in Virginia Beach, Virginia, which serves as a satellite
administrative facility for our car and truck rental operations. Office space is also leased in Orlando, Florida; Englewood, Colorado; Wichita
Falls, Texas; Tulsa, Oklahoma; and Fredericton, Canada pursuant to leases expiring in 2010, except for the Englewood and Fredericton leases
which expire in 2011. These locations primarily provide operational services for both brands, including call center operations. The Budget office
at Redding, California was closed in 2005 and is currently vacant and is subject to a lease expiring in 2011. In addition, there are approximately
15 other leased office locations in the United States for administrative activities, regional sales and operations activities.
We lease or have vehicle rental concessions for both the Avis and Budget brands at locations throughout the world. Avis operates approximately
1,000 locations in the United States and approximately 300 locations outside the United States. Of those locations, approximately 250 in the
United States and approximately 120 outside the United States are at airports. Budget operates at approximately 650 locations in the United
States of which approximately 170 are at airports. Budget also operates at approximately 175 locations outside the United States of which
approximately 65 are at airports. Typically, an airport receives a percentage of vehicle rental revenue, with a guaranteed minimum. Because
there is a limit to the number of vehicle rental locations in an airport, vehicle rental companies frequently bid for the available locations, usually
on the basis of the size of the guaranteed minimums. We believe that our properties are sufficient to meet our present needs and we do not
anticipate any difficulty in securing additional space, as needed, on acceptable terms.
ITEM 3. LEGAL PROCEEDINGS
Vehicle Rental Litigation
We, along with our subsidiaries, are involved from time to time in legal proceedings in the ordinary course of business, including the cases
described below.
Avis was named as a defendant in two putative class actions ( Esquivel v. Avis , commenced January 24, 2004 in the 214th Judicial District of
Nueces County, Texas, and
Stafford v. Avis , commenced February 16, 2005 in the District Court in and for Creek County, Oklahoma). Each
case alleged various causes of action related to the Company’s use and collection of the fuel service charge pursuant to its rental agreements.
Both cases were settled by the Company for nominal fees.
On November 14, 2007, two California residents filed a putative class action lawsuit, captioned Michael Shames et al. v. The Hertz Corp. et al. ,
No. 07 CV 2174H (S.D. Cal.), against Avis Budget, six other rental car companies, the California Travel and Tourism Commission (the
“CTTC”) and the CTTC’s Executive Director, alleging that the defendants violated federal antitrust law and California’s Unfair Competition
Law and False Advertising Law by allegedly agreeing to pass on airport concession fees and a state tourism commission
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ITEM 1B.
UNRESOLVED STAFF COMMENTS