Avis 2014 Annual Report Download - page 40

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securities or equity-linked securities, the issued securities would have a dilutive effect on the interests of the
holders of our common shares. In 2014, we granted approximately 726,000 restricted stock units and in January
2015, we granted approximately 480,000 restricted stock units. We also expect to grant restricted stock units,
stock options and/or other types of equity awards in the future.
ITEM 1B. UNRESOLVED STAFF COMMENTS
None.
ITEM 2. PROPERTIES
Our principal executive offices are located at 6 Sylvan Way, Parsippany, New Jersey 07054 pursuant to a lease
agreement that expires in 2023. We own a facility in Virginia Beach, Virginia, which serves as a satellite
administrative facility for our car and truck rental operations. We also lease office space in Tulsa, Oklahoma, and
Boston, Massachusetts, pursuant to leases expiring in 2022 and 2023, respectively. These locations primarily
provide operational and administrative services or contact center operations. We also lease office space in
Bracknell, England, Budapest, Hungary and Barcelona, Spain, pursuant to leases expiring in 2022, 2018 and
2019, respectively, for corporate offices, contact center activities and other administrative functions, respectively,
in Europe. There are approximately 20 other leased office locations throughout the world used for administrative,
regional sales and operations activities.
We lease or have vehicle rental concessions for our brands at locations throughout the world. Avis operates
approximately 1,400 locations in North America and approximately 1,150 international locations. Of those
locations, approximately 280 in North America and approximately 200 outside of North America are at airports.
Budget operates at approximately 1,100 locations in North America, of which approximately 230 are at airports.
Budget also operates at approximately 600 international locations, of which approximately 160 are at airports.
Payless also operates at approximately 60 locations in North America, the majority of which are at or near
airports. We believe that our properties are sufficient to meet our present needs and we do not anticipate any
difficulty in securing additional space, as needed, on acceptable terms.
ITEM 3. LEGAL PROCEEDINGS
The Company is involved in various legal proceedings related to wage and hour and employee classification
claims that involve allegations that we violated the Fair Labor Standards Act and various other state labor laws by
misclassifying certain management employees as exempt from receiving overtime compensation. The relief
sought in these cases varies but most cases typically seek to recover payment for alleged unpaid overtime
compensation and attorneys’ fees and costs. These matters are at various stages in the litigation process and we
intend to vigorously defend against these suits.
We are involved in other claims, legal proceedings and governmental inquiries related, among other things, to our
vehicle rental and car sharing operations, including, among others, business practice disputes, contract and
licensee disputes, employment and wage-and-hour claims, competition matters, insurance claims, intellectual
property claims and other regulatory, environmental, commercial and tax matters. The Company believes that it
has adequately accrued for such matters as appropriate. However, litigation is inherently unpredictable and,
although the Company believes that its accruals are adequate and/or that it has valid defenses in these matters,
unfavorable resolutions could occur, which could adversely impact the Company’s financial position, results of
operations or cash flows.
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.