Avis 2012 Annual Report Download - page 18

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Seasonality
Our truck rental operations are subject to seasonal demand patterns, with generally higher levels of demand occurring during
the late spring and summer months when most self-moves occur, with the third quarter typically being our busiest quarter.
Generally, December is also a strong month due to increased retail sales activity and package deliveries.
INSURANCE
We generally assume the risk of liability to third parties arising from vehicle rental services in the United States, Canada,
Puerto Rico and the U.S. Virgin Islands, in accordance with the minimum financial responsibility requirements (“MFRs”)
and primacy of coverage laws of the relevant jurisdiction. In certain cases, we assume liability above applicable MFRs, but to
no more than $1 million per occurrence, other than in cases involving a negligent act on the part of the Company, for which
we purchase insurance coverage for exposures beyond retained amounts from a combination of unaffiliated excess carriers.
We insure the risk of liability to third parties arising from vehicle rental services in Europe in accordance with regulatory
requirements, through a combination of unaffiliated carriers and our captive insurance subsidiary, AEGIS Motor Insurance
Limited, which provides reinsurance to third-party insurers, subject to certain limits. AEGIS purchases reinsurance to limit
its exposure. We insure the risk of liability to third parties in Argentina, Australia and New Zealand through a combination of
unaffiliated carriers and one of our affiliates. These carriers provide coverage supplemental to minimum local requirements.
When a customer elects to purchase supplemental liability insurance or other optional insurance products, we largely retain
economic exposure to loss, since the insurance is provided by an unaffiliated carrier that is reinsured through our captive
insurance subsidiary, Constellation Reinsurance Co., Ltd. Additional personal accident insurance offered to our customers in
Europe is underwritten by a third-party insurer, and reinsured by our Avis Europe International Reinsurance Limited
subsidiary.
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. In 2012, we also acquired trademarks and logos related to the “Apex Car Rental” brand in Australia and New Zealand.
All of the material marks used by the Avis System and the Budget System 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 21—Segment Information to our Consolidated
Financial Statements included in Item 8 of this Annual Report.
REGULATION
We are subject to wide variety of laws and regulations in the United States and internationally including those relating to,
among others, insurance products and rates, customer privacy and data security, competition, environmental matters, taxes,
automobile-related liability, corruption, employment matters, cost and fee recovery, the protection of our trademarks and
other intellectual property, and local ownership or investment requirements. Additional information on this topic is contained
in Item 1A – Risk Factors in this Annual Report.
EMPLOYEES
As of December 31, 2012, we employed approximately 28,000 persons, of whom approximately 7,500 were employed on a
part-time basis. Of our approximately 28,000 employees, approximately 10,000 were employed outside of the United States.
In the United States, the majority of our employees are at-will employees and, therefore, not subject to any type of
employment contract or agreement. Certain of our executive officers are employed under employment contracts that specify a
term of employment and specify pay and other benefits.
As of December 31, 2012, approximately 35% of our employees in the United States were covered by collective bargaining
agreements with various labor unions. We believe our employee relations are satisfactory. We have never experienced a