Avis 2008 Annual Report Download - page 72

Avis Budget Group, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unless otherwise noted, all amounts are in millions, except per share amounts)
Avis Budget Group, Inc. provides car and truck rentals and ancillary services to businesses and consumers in the United States and
internationally. The accompanying Consolidated Financial Statements include the accounts and transactions of Avis Budget Group, Inc. and
its subsidiaries (“Avis Budget”), as well as entities in which Avis Budget directly or indirectly has a controlling financial interest
(collectively, the “Company”).
The Company operates in the following business segments:
In presenting the Consolidated Financial Statements in accordance with accounting principles generally accepted in the United States,
management makes estimates and assumptions that affect the amounts reported and related disclosures. Estimates, by their nature, are based
on judgment and available information. Accordingly, actual results could differ from those estimates.
Discontinued Operations . In February 2005, the Company completed an initial public offering of Wright Express Corporation (“Wright
Express”), its former fuel card subsidiary, and in October 2005, the Company sold its former Marketing Services division, which was
comprised of its individual membership and loyalty/insurance marketing businesses. On July 31, 2006, the Company completed the spin-
offs of Realogy Corporation (“Realogy”) and Wyndham Worldwide Corporation (“Wyndham”), and on August 23, 2006, the Company
completed the sale of Travelport, Inc. (“Travelport”) (see Cendant Separation below). Pursuant to Statement of Financial Accounting
Standards (“SFAS”) No. 144, “Accounting for the Impairment or Disposal of Long-Lived Assets” (“SFAS No. 144”), the account balances
and activities of Wright Express, the former Marketing Services division, Realogy, Wyndham and Travelport have been segregated and
reported as discontinued operations for all periods presented. Summarized financial data for the aforementioned businesses are provided in
Note 3—Discontinued Operations.
Cendant Separation. In July 2006, under a Board of Directors approved plan, the Company, then known as Cendant Corporation
(“Cendant”), was separated into four independent companies (the “Cendant Separation”):
F
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9
1.
Basis of Presentation
•
Domestic Car Rental
—
provides car rentals and ancillary products and services in the United States.
•
International Car Rental
—
provides vehicle rentals and ancillary products and services primarily in Argentina, Australia, Canada,
New Zealand, Puerto Rico and the U.S. Virgin Islands.
•
Truck Rental
—
provides truck rentals and related services to consumers and light commercial users in the United States.
•
Realogy Corporation
—
encompasses the Company’s former real estate services segment, which is now presented as a
discontinued operation.
•
Wyndham Worldwide Corporation
—
encompasses the Company’
s former Hospitality Services and Timeshare Resorts segments,
which are now presented as discontinued operations.
•
Travelport, Inc.
—encompasses the Company’s former Travel Distribution Services segment, which is now presented as a
discontinued operation.
•
Avis Budget Group, Inc.
—
encompasses the Company
’
s vehicle rental operations.