Avis 2013 Annual Report Download - page 88

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F-16
In 2011, subsequent to the acquisition of Avis Europe, the Company initiated restructuring initiatives,
identifying synergies across the Company, enhancing organizational efficiencies and consolidating and
rationalizing processes. During the years ended December 31, 2013, 2012 and 2011, as part of this
process, the Company formally communicated the termination of employment to approximately 580, 550
and 50 employees, respectively. During 2013, 2012 and 2011, the Company recorded restructuring
expenses in connection with these initiatives of $40 million, $37 million and $3 million, respectively, the
majority of which have been or are expected to be settled in cash. These expenses primarily represent
costs associated with severance, outplacement services and other costs associated with employee
terminations. As of December 31, 2013, the Company has terminated approximately 440 of the employees
affected in 2013 and anticipates that it will incur an additional $20 million of restructuring expenses related
to these initiatives in 2014.
The following tables summarize the change to our restructuring-related liabilities and identify the amounts
recorded within the Company’s reporting segments for restructuring charges and corresponding payments
and utilizations:
Personnel
Related
Facility
Related Other (a) Total
Balance as of January 1, 2011 $ — $ 6 $ — $ 6
Restructuring expense 5 — — 5
Acquired restructuring obligation — 1 — 1
Cash payment/utilization (4) (6) — (10)
Balance as of December 31, 2011 1 1 — 2
Restructuring expense 37 — 1 38
Cash payment/utilization (26) — (1) (27)
Balance as of December 31, 2012 12 1 — 13
Restructuring expense 34 6 21 61
Cash payment/utilization (29) (2) (21) (52)
Balance as of December 31, 2013 $ 17 $ 5 $ — $ 22
__________
(a) Includes expenses related to the disposition of vehicles.
North
America International Truck Rental Total
Balance as of January 1, 2011 $ 6 $ — $ — $ 6
Restructuring expense 2 3 — 5
Acquired restructuring obligation — 1 — 1
Cash payment/utilization (7) (3) — (10)
Balance as of December 31, 2011 1 1 — 2
Restructuring expense 1 36 1 38
Cash payment/utilization (1) (25) (1) (27)
Balance as of December 31, 2012 1 12 — 13
Restructuring expense 7 33 21 61
Cash payment/utilization (7)(24)(21)(52)
Balance as of December 31, 2013 $ 1 $ 21 $ — $ 22
5. Acquisitions
Zipcar
In March 2013, the Company completed the acquisition of the entire issued share capital of Zipcar, a
leading car sharing company, for $473 million, net of acquired cash. The acquisition increased the
Company’s growth potential and its ability to better serve a greater variety of customer transportation
needs.
The excess of the purchase price over fair value of net assets acquired was allocated to goodwill, which
was assigned to the Company’s North America segment. The goodwill is not expected to be deductible for
tax purposes. The fair values of certain tangible assets and liabilities acquired, identifiable intangible assets,