Avis 2010 Annual Report Download - page 73

Table of Contents
Avis Budget Group, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unless otherwise noted, all dollar 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.
Vehicle Programs. The Company presents separately the financial data of its vehicle programs. These programs are distinct from the
Company’
s other activities since the assets under vehicle programs are generally funded through the issuance of debt that is collateralized by
such assets. The income generated by these assets is used, in part, to repay the principal and interest associated with the debt. Cash inflows
and outflows relating to the generation or acquisition of such assets and the principal debt repayment or financing of such assets are
classified as activities of the Company’s vehicle programs. The Company believes it is appropriate to segregate the financial data of its
vehicle programs because, ultimately, the source of repayment of such debt is the realization of such assets.
Separation. In July 2006, the Company, then known as Cendant Corporation, was separated into four independent companies (the
“Separation”):
Pursuant to the Separation and Distribution Agreement (“Separation Agreement”) among the separating companies and a related Tax
Sharing Agreement, Realogy, Wyndham and Travelport have agreed to assume and retain all of the liabilities primarily related to each of
their respective businesses and operations, including litigation primarily related to each of their businesses where the Company is a named
party. Realogy and Wyndham have also agreed to assume certain contingent and other corporate liabilities of the
F
-
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.
•
Wyndham Worldwide Corporation
—
encompasses the Company
’
s former Hospitality Services and Timeshare Resorts segments.
•
Travelport, Inc.
—
encompasses the Company
’
s former Travel Distribution Services segment.
•
Avis Budget Group, Inc.
—
encompasses the Company
’
s vehicle rental operations.