Avis 2011 Annual Report Download - page 18

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operating and sub-licensing the Avis and Budget brands in Europe, the Middle East and Africa, and the Avis brand in Asia.
In 2010, Avis Europe generated revenue of approximately $1.6 billion; operated an average fleet of approximately 100,000
vehicles in France, Germany, Spain, Italy, the United Kingdom, Austria, Belgium, Luxembourg, the Netherlands, Portugal,
Switzerland, the Czech Republic and Singapore; and had sub-licensees in approximately 100 countries in Europe, the Middle
East, Africa and Asia. The Avis Europe Acquisition, and the repayment of certain of its debt obligations, was funded through
a combination of existing cash and incremental indebtedness.
TRADEMARKS AND INTELLECTUAL PROPERTY
The service marks “Avis” and “Budget,” related marks incorporating the words “Avis” or “Budget,” and related logos and
marks such as “We try harder” are material to our vehicle rental business. Our subsidiaries and licensees actively use these
marks. All of the material marks used by the Avis and Budget Systems are registered (or have applications pending for
registration) with the United States Patent and Trademark Office as well as in over 100 countries. Our subsidiaries own the
marks and other intellectual property, including the Wizard system, used in our business.
FINANCIAL DATA OF SEGMENTS AND GEOGRAPHIC AREAS
Financial data for our segments and geographic areas are reported in Note 22—Segment Information to our Consolidated
Financial Statements included in Item 8 of this Annual Report on Form 10-K.
REGULATION
We are subject to various federal, state and local laws and regulations in the United States and internationally, including
those relating to taxing and licensing of vehicles, trademark licensing, consumer credit, consumer protection, environmental
protection, insurance, privacy and labor matters.
Environmental
The principal environmental regulatory requirements applicable to our vehicle rental operations relate to the ownership or
use of tanks for the storage of petroleum products, such as gasoline, diesel fuel and waste oils; the treatment or discharge of
waste waters; and the generation, storage, transportation and off-site treatment or disposal of solid or liquid wastes. We
operate approximately 450 Avis and Budget locations worldwide at which petroleum products are stored in underground or
above-ground tanks and maintain liability insurance covering tanks at these locations. In the United States, we have instituted
an environmental compliance program designed to ensure that these tanks are in compliance with applicable technical and
operational requirements, including the replacement and upgrade of underground tanks to comply with the December 1998
EPA upgrade mandate and periodic testing and leak monitoring of underground storage tanks. We are also subject to various
local environmental regulatory requirements in the other countries in which we operate locations with underground or above-
ground storage tanks. We believe that the locations where we currently operate are in compliance, in all material respects,
with such regulatory requirements.
We may also be subject to requirements related to the remediation of, or the liability for remediation of, substances that have
been released into the environment at properties owned or operated by us or at properties to which we send substances for
treatment or disposal. Such remediation requirements may be imposed without regard to fault, and liability for environmental
remediation can be substantial. These remediation requirements and other environmental regulations differ depending on the
country where the property is located.
We may be eligible for reimbursement in the United States from funds in certain states established to assist in the payment of
remediation costs for releases from certain registered underground tanks. Subject to certain deductibles, the availability of
funds, compliance status of the tanks and the nature of the release, these tank funds may be available to us for use in
remediating future releases from our tank systems located in such states.
Loss Damage Waivers
Twenty-four states have enacted legislation which requires disclosure to each customer at the time of rental that damage to
the rented vehicle may be covered to some extent by the customer’s personal automobile insurance and that loss damage
waivers may not be necessary. In addition, four states have statutes which establish or cap the daily rate that can be charged
for loss damage waivers.