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F-9
Avis Budget Group, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unless otherwise noted, all dollar amounts are in millions, except per share amounts)
1. Basis of Presentation
Avis Budget Group, Inc. provides car and truck rentals, car sharing services and ancillary services to
businesses and consumers worldwide. The accompanying Consolidated Financial Statements include the
accounts and transactions of Avis Budget Group, Inc. and its subsidiaries, as well as entities in which Avis
Budget Group, Inc. directly or indirectly has a controlling financial interest (collectively, the “Company”).
The Company operates the following reportable business segments:
•Americas—provides and licenses the Company’s brands to third parties for vehicle rentals and
ancillary products and services in North America, South America, Central America and the
Caribbean, and operates the Company’s car sharing business in certain of these markets.
•International—provides and licenses the Company’s brands to third parties for vehicle rentals
and ancillary products and services in Europe, the Middle East, Africa, Asia, Australia and New
Zealand, and operates the Company’s car sharing business in certain of these markets.
In 2015, 2014 and 2013, the Company completed the business acquisitions discussed in Note 5 to these
Consolidated Financial Statements. The operating results of the acquired businesses are included in the
accompanying Consolidated Financial Statements from the dates of acquisition.
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
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.
2. Summary of Significant Accounting Policies
Accounting Principles
The Company’s Consolidated Financial Statements have been prepared in accordance with accounting
principles generally accepted in the United States of America (“GAAP”).
Principles of Consolidation
The Consolidated Financial Statements include the accounts of the Company and all entities in which it has
a direct or indirect controlling financial interest and variable interest entities for which the Company has
determined it is the primary beneficiary. Intercompany transactions have been eliminated in consolidation.
Reclassifications
Certain reclassifications have been made to prior years’ Consolidated Financial Statements to conform to
the current year presentation. These reclassifications have no impact on period reported net income or cash
flow.
Use of Estimates and Assumptions
The use of estimates and assumptions as determined by management is required in the preparation of the
Consolidated Financial Statements in conformity with GAAP. These estimates are based on management’s
evaluation of historical trends and other information available when the Consolidated Financial Statements
are prepared and may affect the amounts reported and related disclosures. Actual results could differ from
those estimates.