AVIS BUDGET GROUP, INC.CAR
AVIS BUDGET GROUP, INC. Segments Disclosure
Segment Information
Our chief executive officer, who also serves as our chief operating decision-maker (“CODM”), assesses performance and allocates resources based upon the separate financial information of our operating segments. We aggregate certain of our operating segments into our reportable segments. In identifying our reportable segments, we also consider the management structure of the organization, the nature of services provided by our operating segments, the geographical areas and economic characteristics in which the segments operate, and other relevant factors.
Our CODM evaluates the operating results of each of our reportable segments based upon revenues and Adjusted EBITDA, which we define as income (loss) from continuing operations before non-vehicle related depreciation and amortization; long-lived asset impairment and other related charges; other fleet charges; restructuring and other related charges; early extinguishment of debt costs; non-vehicle related interest; transaction-related costs, net; legal matters, net, which primarily includes amounts recorded in excess of $5 million, related to unprecedented self-insurance reserves for allocated loss adjustment expense, class action lawsuits and personal injury matters; non-operational charges related to shareholder activist activity, which includes third-party advisory, legal and other professional fees; COVID-19 charges, net; cloud computing costs; other (income) expense, net; severe weather-related damages in excess of $5 million, net of insurance proceeds; and income taxes. In the first quarter of 2025, we revised our definition of Adjusted EBITDA to exclude other fleet charges. We did not revise prior years' Adjusted EBITDA amounts because there were no other charges similar in nature to these.
We believe Adjusted EBITDA is useful as a supplemental measure in evaluating the performance of our operating businesses and in comparing our results from period to period. We also believe that Adjusted EBITDA is useful to investors because it allows them to assess our results of operations and financial condition on the same basis that management uses internally. Adjusted EBITDA is a non-GAAP measure and should not be considered in isolation or as a substitute for net income or other income statement data prepared in accordance with U.S. GAAP.
Provided below is information about our revenues, significant segment expenses, and reportable segment Adjusted EBITDA, together with a reconciliation of reportable segment Adjusted EBITDA to income (loss) before income taxes.
Year Ended December 31, 2025
| Americas | International | Total | |||||||||||||||
| Revenues | $ | 8,900 | $ | 2,752 | $ | 11,652 | |||||||||||
| Significant segment expenses: | |||||||||||||||||
Operating (a) | 4,598 | 1,303 | |||||||||||||||
Vehicle depreciation and lease charges, net (b) | 2,026 | 599 | |||||||||||||||
Selling, general and administrative | 942 | 424 | |||||||||||||||
| Vehicle interest, net | 782 | 136 | |||||||||||||||
| Reportable segment Adjusted EBITDA | $ | 552 | $ | 290 | $ | 842 | |||||||||||
| Reconciliation of reportable segment Adjusted EBITDA to income (loss) before income taxes: | |||||||||||||||||
| Reportable segment Adjusted EBITDA | $ | 842 | |||||||||||||||
| Non-vehicle related depreciation and amortization | 229 | ||||||||||||||||
| Interest expense related to corporate debt, net: | |||||||||||||||||
| Interest expense | 11 | ||||||||||||||||
Long-lived asset impairment and other related charges (c) | 518 | ||||||||||||||||
| Other fleet charges | 390 | ||||||||||||||||
| Restructuring and other related charges | 117 | ||||||||||||||||
| Other (income) expense, net | 18 | ||||||||||||||||
| Legal matters, net; cloud computing costs; and severe weather-related damages, net | (105) | ||||||||||||||||
Corporate and other (d) | 593 | ||||||||||||||||
| Income (loss) before income taxes | $ | (929) | |||||||||||||||
__________
(a)Excludes legal matters, net, cloud computing costs and severe weather-related damages, net.
(b)Excludes other fleet charges related to the disposal of certain fleet within our Americas reportable segment.
(c)Includes an impairment charge of approximately $518 million within our Americas reportable segment, related to the acceleration of the rotation of certain United States EV rental car vehicles in conjunction with the Interpace Ventures transaction. See Note 2 – Summary of Significant Accounting Policies – Impairment of Long-Lived Assets.
(d)Consists of unallocated corporate expenses, including $411 million and $6 million of interest expense and early extinguishment of debt, respectively, which are not attributable to a particular reportable segment.
Year Ended December 31, 2024
| Americas | International | Total | |||||||||||||||
| Revenues | $ | 9,111 | $ | 2,678 | $ | 11,789 | |||||||||||
| Significant segment expenses: | |||||||||||||||||
Operating (a) | 4,604 | 1,279 | |||||||||||||||
| Vehicle depreciation and lease charges, net | 2,301 | 675 | |||||||||||||||
| Selling, general and administrative | 868 | 409 | |||||||||||||||
| Vehicle interest, net | 787 | 154 | |||||||||||||||
| Reportable segment Adjusted EBITDA | $ | 551 | $ | 161 | $ | 712 | |||||||||||
| Reconciliation of reportable segment Adjusted EBITDA to income (loss) before income taxes: | |||||||||||||||||
| Reportable segment Adjusted EBITDA | $ | 712 | |||||||||||||||
| Non-vehicle related depreciation and amortization | 234 | ||||||||||||||||
| Interest expense related to corporate debt, net: | |||||||||||||||||
| Interest expense | 4 | ||||||||||||||||
Long-lived asset impairment and other related charges (b) | 2,470 | ||||||||||||||||
| Restructuring and other related charges | 37 | ||||||||||||||||
| Transaction-related costs, net | 3 | ||||||||||||||||
| Other (income) expense, net | 9 | ||||||||||||||||
| Legal matters, net; cloud computing costs; and severe weather-related damages, net | 77 | ||||||||||||||||
Corporate and other (c) | 505 | ||||||||||||||||
| Income (loss) before income taxes | $ | (2,627) | |||||||||||||||
__________
(a)Excludes legal matters, net, cloud computing costs and severe weather-related damages, net.
(b)Includes an impairment charge of approximately $2.3 billion related to the acceleration of the rotation of our fleet and a charge of $180 million related to the write-down of the carrying value of certain vehicles held for sale within our Americas reportable segment. See Note 2 – Summary of Significant Accounting Policies – Impairment of Long-Lived Assets.
(c)Consists of unallocated corporate expenses, including $354 million and $19 million of interest expense and early extinguishment of debt, respectively, which are not attributable to a particular reportable segment.
Year Ended December 31, 2023
| Americas | International | Total | |||||||||||||||
| Revenues | $ | 9,347 | $ | 2,661 | $ | 12,008 | |||||||||||
| Significant segment expenses: | |||||||||||||||||
Operating (a) | 4,425 | 1,209 | |||||||||||||||
| Vehicle depreciation and lease charges, net | 1,215 | 524 | |||||||||||||||
| Selling, general and administrative | 894 | 409 | |||||||||||||||
| Vehicle interest, net | 617 | 119 | |||||||||||||||
| Reportable segment Adjusted EBITDA | $ | 2,196 | $ | 400 | $ | 2,596 | |||||||||||
| Reconciliation of reportable segment Adjusted EBITDA to income (loss) before income taxes: | |||||||||||||||||
| Reportable segment Adjusted EBITDA | $ | 2,596 | |||||||||||||||
| Non-vehicle related depreciation and amortization | 215 | ||||||||||||||||
| Interest expense related to corporate debt, net: | |||||||||||||||||
| Interest expense | (6) | ||||||||||||||||
| Restructuring and other related charges | 11 | ||||||||||||||||
| Transaction-related costs, net | 3 | ||||||||||||||||
| Other (income) expense, net | 3 | ||||||||||||||||
| Legal matters, net and cloud computing costs | 10 | ||||||||||||||||
Corporate and other (b) | 446 | ||||||||||||||||
| Income (loss) before income taxes | $ | 1,914 | |||||||||||||||
__________
(a)Excludes legal matters, net and cloud computing costs.
(b)Consists of unallocated corporate expenses, including $302 million and $5 million of interest expense and early extinguishment of debt, respectively, which are not attributable to a particular reportable segment.
Provided below is information about our segment assets.
| Americas | International | Unallocated Assets (a) | Total | ||||||||||||||||||||
| 2025 | |||||||||||||||||||||||
| Property and equipment additions | $ | 79 | $ | 36 | $ | 103 | $ | 218 | |||||||||||||||
| Assets exclusive of assets under vehicle programs | 7,070 | 2,951 | 285 | 10,306 | |||||||||||||||||||
| Assets under vehicle programs | 17,312 | 3,639 | — | 20,951 | |||||||||||||||||||
| Net long-lived assets | 1,470 | 805 | 191 | 2,466 | |||||||||||||||||||
| 2024 | |||||||||||||||||||||||
| Property and equipment additions | $ | 109 | $ | 40 | $ | 53 | $ | 202 | |||||||||||||||
| Assets exclusive of assets under vehicle programs | 6,785 | 2,539 | 344 | 9,668 | |||||||||||||||||||
| Assets under vehicle programs | 16,058 | 3,315 | — | 19,373 | |||||||||||||||||||
| Net long-lived assets | 1,474 | 733 | 162 | 2,369 | |||||||||||||||||||
| 2023 | |||||||||||||||||||||||
| Property and equipment additions | $ | 126 | $ | 44 | $ | 103 | $ | 273 | |||||||||||||||
| Assets exclusive of assets under vehicle programs | 6,533 | 2,633 | 424 | 9,590 | |||||||||||||||||||
| Assets under vehicle programs | 19,285 | 3,694 | — | 22,979 | |||||||||||||||||||
| Net long-lived assets | 1,483 | 795 | 210 | 2,488 | |||||||||||||||||||
__________
(a)Includes unallocated corporate assets which are not attributable to a particular reportable segment.
Provided below is information classified based on the geographic location of our subsidiaries.
| United States | All Other Countries | Total | |||||||||||||||
| 2025 | |||||||||||||||||
| Revenues | $ | 8,395 | $ | 3,257 | $ | 11,652 | |||||||||||
| Assets exclusive of assets under vehicle programs | 6,851 | 3,455 | 10,306 | ||||||||||||||
| Assets under vehicle programs | 16,584 | 4,367 | 20,951 | ||||||||||||||
| Net long-lived assets | 1,487 | 979 | 2,466 | ||||||||||||||
| 2024 | |||||||||||||||||
| Revenues | $ | 8,583 | $ | 3,206 | $ | 11,789 | |||||||||||
| Assets exclusive of assets under vehicle programs | 6,720 | 2,948 | 9,668 | ||||||||||||||
| Assets under vehicle programs | 15,295 | 4,078 | 19,373 | ||||||||||||||
| Net long-lived assets | 1,465 | 904 | 2,369 | ||||||||||||||
| 2023 | |||||||||||||||||
| Revenues | $ | 8,775 | $ | 3,233 | $ | 12,008 | |||||||||||
| Assets exclusive of assets under vehicle programs | 6,460 | 3,130 | 9,590 | ||||||||||||||
| Assets under vehicle programs | 18,228 | 4,751 | 22,979 | ||||||||||||||
| Net long-lived assets | 1,507 | 981 | 2,488 | ||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 19, 2026 | Showing above |
| 2024 | Feb 14, 2025 | |
| 2023 | Feb 16, 2024 | |
| 2022 | Feb 16, 2023 | |
| 2021 | Feb 17, 2022 | |
| 2020 | Feb 17, 2021 | |
| 2019 | Feb 20, 2020 | |
| 2018 | Feb 21, 2019 | |
| 2017 | Feb 22, 2018 | |
| 2016 | Feb 21, 2017 | |
| 2015 | Feb 24, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.