Avis Budget Group, Inc (CAR) 2024年年度報告「NASDAQ」.pdf

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1、UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWASHINGTON,D.C.20549 FORM 10-K ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934For the fiscal year ended December 31,2024OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934For the

2、 transition period from to Commission File No.001-10308 AVIS BUDGET GROUP,INC.(Exact name of Registrant as specified in its charter)Delaware06-0918165(State or other jurisdiction of incorporation or organization)(I.R.S.Employer Identification Number)379 Interpace ParkwayParsippany,NJ07054(Address of

3、 principal executive offices)(Zip Code)(973)496-4700(Registrants telephone number,including area code)Securities registered pursuant to section 12(b)of the Act:TITLE OF EACH CLASSTRADING SYMBOL(S)NAME OF EACH EXCHANGE ON WHICH REGISTEREDCommon Stock,Par Value$.01CARThe Nasdaq Global Select MarketSEC

4、URITIES REGISTERED PURSUANT TO SECTION 12(g)OF THE ACT:NoneIndicate by check mark if the registrant is a well-known seasoned issuer,as defined in Rule 405 of the Securities Act.Yes No oIndicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d)of

5、the Act.Yes o No Indicate by check mark whether the registrant(1)has filed all reports required to be filed by Section 13 or 15(d)of the Securities Exchange Act of 1934 during the preceding 12 months(or for such shorter period that the registrant was required to file such reports),and(2)has been sub

6、ject to such filing requirements for the past 90 days.Yes No oIndicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T(232.405 of this chapter)during the preceding 12 months(or for such shor

7、ter period that the registrant was required to submit such files).Yes No oIndicate by check mark whether the registrant is a large accelerated filer,an accelerated filer,a non-accelerated filer,a smaller reporting company,or an emerging growth company.See the definitions of“large accelerated filer,”

8、“accelerated filer,”“smaller reporting company”and“emerging growth company”in Rule 12b-2 of the Exchange Act.Large accelerated filerAccelerated filerNon-accelerated filerSmaller reporting companyEmerging growth companyIf an emerging growth company,indicate by check mark if the registrant has elected

9、 not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a)of the Exchange Act.oIndicate by check mark whether the registrant has filed a report on and attestation to its managements assessment of the effectivenes

10、s of its internal control over financial reporting under Section 404(b)of the Sarbanes-Oxley Act(15 U.S.C.7262(b)by the registered public accounting firm that prepared or issued its audit report.If securities are registered pursuant to Section 12(b)of the Act,indicate by check mark whether the finan

11、cial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements.Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of th

12、e registrants executive officers during the relevant recovery period pursuant to 240.10D-1(b).Indicate by check mark whether the registrant is a shell company(as defined in Rule 12b-2 of the Act).Yes No As of June 30,2024,the aggregate market value of the registrants common stock held by non-affilia

13、tes of the registrant was$1,797,778,805 based on the closing price of its common stock on the Nasdaq Global Select Market.As of February 7,2025,the number of shares outstanding of the registrants common stock was 35,110,440.DOCUMENTS INCORPORATED BY REFERENCEPortions of the registrants definitive pr

14、oxy statement to be mailed to stockholders in connection with the registrants 2025 annual meeting of stockholders(the“Annual Proxy Statement”)are incorporated by reference into Part III hereof.TABLE OF CONTENTS ItemDescriptionPagePART I1Business41ARisk Factors171BUnresolved Staff Comments301CCyberse

15、curity302Properties313Legal Proceedings314Mine Safety Disclosures31PART II5Market for Registrants Common Equity,Related Stockholder Matters and Issuer Purchases of Equity Securities326Reserved337Managements Discussion and Analysis of Financial Condition and Results of Operations347AQuantitative and

16、Qualitative Disclosures About Market Risk438Financial Statements and Supplementary Data449Changes in and Disagreements with Accountants on Accounting and Financial Disclosure449AControls and Procedures459BOther Information479CDisclosure Regarding Foreign Jurisdictions that Prevent Inspections47PART

17、III10Directors,Executive Officers and Corporate Governance4711Executive Compensation4712Security Ownership of Certain Beneficial Owners and Management andRelated Stockholder Matters4713Certain Relationships and Related Transactions,and Director Independence4714Principal Accountant Fees and Services4

18、7PART IV15Exhibits and Financial Statement Schedules4816Form 10K Summary48Signatures49FORWARD-LOOKING STATEMENTSCertain statements contained in this Annual Report on Form 10-K may be considered“forward-looking statements”as that term is defined in the Private Securities Litigation Reform Act of 1995

19、.The forward-looking statements contained herein are subject to known and unknown risks,uncertainties,assumptions and other factors that may cause our actual results,performance or achievements to be materially different from those expressed or implied by any such forward-looking statements.Forward-

20、looking statements include information concerning our future financial performance,business strategy,projected plans and objectives.These statements may be identified by the fact that they do not relate to historical or current facts and may use words such as“believes,”“expects,”“anticipates,”“will,

21、”“should,”“could,”“may,”“would,”“intends,”“projects,”“estimates,”“plans,”“forecasts,”“guidance,”and similar words,expressions or phrases.The following important factors and assumptions could affect our future results and could cause actual results to differ materially from those expressed in such fo

22、rward-looking statements.These factors include,but are not limited to:the high level of competition in the mobility industry,including from new companies or technology,and the impact such competition may have on pricing and rental volume;a change in our fleet costs,including as a result of a change

23、in the cost of new vehicles,resulting from inflation,tariffs or otherwise,manufacturer recalls,disruption in the supply of new vehicles,including due to labor actions,tariffs or otherwise,shortages in semiconductors used in new vehicle production,and/or a change in the price at which we dispose of u

24、sed vehicles either in the used vehicle market or under repurchase or guaranteed depreciation programs;the results of operations or financial condition of the manufacturers of our vehicles,which could impact their ability to perform their payment obligations under our agreements with them,including

25、repurchase and/or guaranteed depreciation arrangements,and/or their willingness or ability to make vehicles available to us or the mobility industry as a whole on commercially reasonable terms or at all;levels of and volatility in travel demand,including future volatility in airline passenger traffi

26、c;a deterioration in economic conditions,resulting in a recession or otherwise,particularly during our peak season or in key market segments;an occurrence or threat of terrorism,pandemics,severe weather events or natural disasters,military conflicts,including the ongoing military conflict in Eastern

27、 Europe,or civil unrest in the locations in which we operate,and the potential effects of sanctions on the world economy and markets and/or international trade;any substantial changes in the cost or supply of fuel,vehicle parts,energy,labor or other resources on which we depend to operate our busine

28、ss,including as a result of pandemics,inflation,tariffs,the ongoing military conflict in Eastern Europe,and any embargoes on oil sales imposed on or by the Russian government;our ability to successfully implement or achieve our business plans and strategies,achieve and maintain cost savings and adap

29、t our business to changes in mobility;political,economic,or commercial instability and/or political,regulatory,or legal changes in the countries in which we operate,and our ability to conform to multiple and conflicting laws or regulations in those countries;the performance of the used vehicle marke

30、t from time to time,including our ability to dispose of vehicles in the used vehicle market on attractive terms;our dependence on third-party distribution channels,third-party suppliers of other services and co-marketing arrangements with third parties;Table of Contents1risks related to completed or

31、 future acquisitions or investments that we may pursue,including the incurrence of incremental indebtedness to help fund such transactions and our ability to promptly and effectively integrate any acquired businesses or capitalize on joint ventures,partnerships and other investments;our ability to u

32、tilize derivative instruments,and the impact of derivative instruments we utilize,which can be affected by fluctuations in interest rates,fuel prices and exchange rates,changes in government regulations and other factors;our exposure to uninsured or unpaid claims in excess of historical levels or ch

33、anges in the number of incidents or cost per incident,and our ability to obtain insurance at desired levels and the cost of that insurance;risks associated with litigation or governmental or regulatory inquiries,or any failure or inability to comply with laws,regulations or contractual obligations o

34、r any changes in laws,regulations or contractual obligations,including with respect to personally identifiable information and consumer privacy,labor and employment,and tax;risks related to protecting the integrity of,and preventing unauthorized access to,our information technology systems or those

35、of our third-party vendors,licensees,dealers,independent operators and independent contractors,and protecting the confidential information of our employees and customers against security breaches,including physical or cybersecurity breaches,attacks,or other disruptions,compliance with privacy and da

36、ta protection regulation,and the effects of any potential increase in cyberattacks on the world economy and markets and/or international trade;any impact on us from the actions of our third-party vendors,licensees,dealers,independent operators and independent contractors and/or disputes that may ari

37、se out of our agreements with such parties;any major disruptions in our communication networks or information systems;risks related to tax obligations and the effect of future changes in tax laws and accounting standards;risks related to our indebtedness,including our substantial outstanding debt ob

38、ligations,recent and future interest rate increases,which increase our financing costs,downgrades by rating agencies and our ability to incur substantially more debt;our ability to obtain financing for our global operations,including the funding of our vehicle fleet through the issuance of asset-bac

39、ked securities and use of the global lending markets;our ability to meet the financial and other covenants contained in the agreements governing our indebtedness,or to obtain a waiver or amendment of such covenants should we be unable to meet such covenants;significant changes in the timing of our f

40、leet rotation,carrying value of goodwill,or long-lived assets,including when there are events or changes in circumstances that indicate the carrying value may exceed the current fair value,which could result in a significant impairment charge;andother business,economic,competitive,governmental,regul

41、atory,political or technological factors affecting our operations,pricing or services.We operate in a continuously changing business environment and new risk factors emerge from time to time.New risk factors,factors beyond our control,or changes in the impact of identified risk factors may cause act

42、ual results to differ materially from those set forth in any forward-looking statements.Accordingly,forward-looking statements should not be relied upon as a prediction of actual results.Moreover,we do not assume responsibility if future results are materially different from those forecasted or anti

43、cipated.Other factors and assumptions not identified above,including those discussed in“Managements Discussion and Analysis of Financial Condition and Results of Operations”set forth in Part II,Item 7,in“Risk Factors”set forth in Part I,Item 1A and in other portions of this Table of Contents 2Annual

44、 Report on Form 10-K,may contain forward-looking statements and involve uncertainties that could cause actual results to differ materially from those projected in any forward-looking statements.Although we believe that our assumptions are reasonable,any or all of our forward-looking statements may p

45、rove to be inaccurate and we can make no guarantees about our future performance.Should unknown risks or uncertainties materialize or underlying assumptions prove inaccurate,actual results could differ materially from past results and/or those anticipated,estimated or projected.We undertake no oblig

46、ation to release any revisions to any forward-looking statements,to report events or to report the occurrence of unanticipated events.For any forward-looking statements contained in any document,we claim the protection of the safe harbor for forward-looking statements contained in the Private Securi

47、ties Litigation Reform Act of 1995.Table of Contents 3PART I ITEM 1.BUSINESSExcept as expressly indicated or unless the context otherwise requires,the“Company,”“Avis Budget,”“we,”“our”or“us”means Avis Budget Group,Inc.and its subsidiaries.Unless the context requires otherwise,these references and re

48、ferences to our brands do not include the operations of our licensees,as further discussed below.OVERVIEWWe are a leading global provider of mobility solutions through our three most recognized brands,Avis,Budget and Zipcar,as well as several other brands,well recognized in their respective markets.

49、Our brands offer a range of options,from car and truck rental to car sharing.We license the use of the Avis,Budget,Zipcar and other brands trademarks to licensees in areas in which we do not operate directly.We and our licensees operate our brands in approximately 180 countries throughout the world.

50、We generally maintain a leading share of airport car rental revenues in North America,Europe and Australasia,and we operate a leading car sharing network and one of the leading commercial truck rental businesses in the United States.We believe the range of options from our diversified brands enjoy c

51、omplementary demand patterns with mid-week commercial demand balanced by weekend leisure demand.On average,our global rental fleet totaled approximately 695,000 vehicles in 2024.We completed over 38 million vehicle rental transactions worldwide and generated total revenues of approximately$11.8 bill

52、ion during 2024.Our brands and mobility solutions have an extended global reach with approximately 10,250 rental locations throughout the world,including approximately 3,800 locations operated by our licensees.We categorize our operations into two reportable business segments:Americas-consisting pri

53、marily of(i)vehicle rental operations in North America,South America,Central America and the Caribbean,(ii)car sharing operations in certain of these markets,and(iii)licensees in certain areas in which we do not operate directly.International-consisting primarily of(i)vehicle rental operations in Eu

54、rope,the Middle East,Africa,Asia and Australasia,(ii)car sharing operations in certain of these markets,and(iii)licensees in certain areas in which we do not operate directly.Additional discussion of our reportable segments is included in Part II,Item 7,“Managements Discussion and Analysis of Financ

55、ial Condition and Results of Operations”and in Note 21 Segment Information to the Consolidated Financial Statements included in this Annual Report on Form 10-K.OUR STRATEGYFor 2025,we expect our strategy to focus on transforming key parts of our business through technology,system enhancements and da

56、ta,particularly with respect to customer experience,revenue generation and costs.We believe this strategy,together with a change in fourth quarter 2024 in our fleet strategy to accelerate certain fleet rotations(as discussed in“Managements Discussion and Analysis of Financial Condition and Results o

57、f Operations”set forth in Part II,Item 7),will continue to strengthen our Company,maximize profitability,and deliver stakeholder value.With respect to customer experience,our aim will continue to be to deliver a superior customer journey.For revenue,we will focus on optimizing mix and marketing,and

58、for costs,we plan to implement centers of excellence and develop new tools and capabilities to increase margin.Table of Contents 4OUR BRANDS AND OPERATIONSOUR BRANDSOur Avis,Budget and Zipcar brands are three of the most recognized brands in our industry.We believe that each of our brands is positio

59、ned to be embraced by different target customers,and we see benefits and savings from our brands sharing some of the same facilities,systems,and administrative infrastructure.In addition,we are able to recognize benefits as a result of complementary demand patterns with commercial rentals occurring

60、primarily on business days and leisure rentals occurring primarily on holidays and weekends.We also operate the Payless and Apex brands in the value segment of the car rental industry.In addition,we further extend our offerings through our AmicoBlu,Maggiore,and Morini Rent brands in Italy;FranceCars

61、 brand in France,ACL Hire and McNicoll Hire brands in the UK;and Turiscar and Turisprime brands in Portugal.The following graphs present the approximate composition of our revenues in 2024.Revenues by BrandAvis57%Budget*36%Other*7%Revenues by CustomerCommercial35%Leisure65%Revenues by MarketAirport6

62、7%Off-Airport33%*Includes Budget Truck.*Includes Zipcar and other operating brands.The Avis brand provides high-quality vehicle rental and other mobility solutions at price points generally above non-branded and value-branded vehicle rental companies and serves the premium commercial and leisure seg

63、ments of the travel industry.In 2024,our Company-operated Avis locations generated total revenues of approximately$6.8 billion.The following graphs present the approximate composition of our Avis revenues in 2024.Avis Revenuesby SegmentAmericas74%International26%Avis Revenuesby CustomerCommercial45%

64、Leisure55%Avis Revenuesby MarketAirport67%Off-Airport33%We also license the Avis brand to independent commercial owners who operate approximately half of our locations worldwide and generally pay royalty fees to us based on a percentage of applicable revenues.In 2024,these royalty fees totaled appro

65、ximately 1%of our Avis revenues.Table of Contents 5We operate or license Avis vehicle rental locations at virtually all of the largest commercial airports and cities in the world.The table below presents the approximate number of Avis locations as of December 31,2024.Avis Locations*AmericasInternati

66、onalTotalCompany-operated locations 2,075 970 3,045 Licensee locations 430 1,635 2,065 Total Avis Locations 2,505 2,605 5,110*Certain locations support multiple brands.We offer Avis customers a variety of premium services,including:the Avis mobile application,which allows customers a unique and inno

67、vative way to control many elements of their rental experience via their mobile devices without the need to visit the rental counter.In many United States locations,the application also allows customers to choose,exchange or upgrade their vehicles upon arrival and utilize a unique code to exit via o

68、ur automated Express Exit for a completely contactless rental experience.The application also allows customers to track Avis shuttle buses to rental locations,find their vehicle,and locate nearby gas stations and parking facilities;Avis Preferred,our frequent renter rewards program that offers count

69、er bypass at major airport locations,as well as additional benefits at different customer status levels,such as vehicle upgrades;availability of a selection of luxury vehicles through our Avis Signature Series,as well as premium,sport,performance and electrified vehicles;access to satellite radio se

70、rvice,mobile WiFi devices,and GPS navigation;Avis rental services such as roadside assistance,fuel service options,e-receipts,electronic toll collection services that allow customers to pay highway tolls without waiting in toll booth lines,and amenities such as Avis Cares,a full range of special pro

71、ducts and services for drivers and passengers with disabilities;for our corporate customers,Avis Budget Group Business Intelligence,a proprietary reporting solution that provides a centralized reporting tool and customer reporting portal for corporate clients in North America and Europe,enabling the

72、m to easily view and analyze their rental activity,allowing them to better manage their travel budgets and monitor employee compliance with applicable travel policies.The Budget brand is a leading supplier of vehicle rental and other mobility solutions focused primarily on more value-conscious custo

73、mers.In 2024,our Company-operated Budget vehicle rental operations generated total revenues of approximately$4.3 billion.The following graphs present the approximate composition of our Budget revenues in 2024.Budget Revenuesby SegmentAmericas88%International12%Budget Revenuesby CustomerCommercial18%

74、Leisure82%Budget Revenuesby MarketAirport73%Off-Airport27%Table of Contents 6We also license the Budget brand to independent commercial owners who generally pay royalty fees to us based on a percentage of applicable revenues.In 2024,these royalty fees totaled approximately 1%of our Budget revenues.C

75、ar RentalWe operate or license Budget car rental locations at airports and in cities worldwide.The table below presents the approximate number of Budget car rental locations as of December 31,2024.Budget Locations*AmericasInternationalTotalCompany-operated locations 1,425 785 2,210 Licensee location

76、s 530 1,030 1,560 Total Budget Locations 1,955 1,815 3,770*Certain locations support multiple brands.Budget offers its customers several products and services similar to Avis,such as refueling options,roadside assistance,electronic toll collection,and other supplemental rental products,e-receipts an

77、d special rental rates for frequent renters.In addition,Budgets Fastbreak service expedites rental service for frequent travelers and the mobile application allows customers to reserve,modify and cancel reservations on their mobile devices.Budget TruckOur Budget Truck rental business is one of the l

78、argest local and one-way truck and cargo van rental businesses in the United States.As of December 31,2024,our Budget Truck fleet is comprised of approximately 22,000 vehicles that are rented through a network of approximately 400 Company-operated and 380 dealer-operated locations throughout the con

79、tinental United States.These dealers are independently-owned businesses that generally operate other retail service businesses.In addition to their principal businesses,the dealers rent our light-and medium-duty trucks and commercial cargo vans to customers and are responsible for collecting payment

80、s on our behalf.The dealers receive a commission on all truck,van and ancillary equipment rentals.The Budget Truck rental business serves both the light commercial and consumer sectors.The light commercial sector consists of a wide range of businesses that rent light-to medium-duty trucks,which we d

81、efine as trucks having a gross vehicle weight of less than 26,000 pounds,for a variety of commercial applications.The consumer sector consists primarily of individuals who rent trucks to move household goods on either a one-way or local basis.Zipcar is a leading car sharing network,driven by a missi

82、on to enable simple and responsible urban living.With its wide variety of self-service vehicles available by the hour or day,Zipcar offers comprehensive,convenient and flexible car sharing options in urban areas and college campuses in hundreds of cities and towns.Zipcar provides its members on-dema

83、nd,self-service vehicles in reserved parking spaces located in neighborhoods,business districts,office complexes and college campuses,as an alternative to car ownership.We continue to offer our Zipcar Flex product in London providing one-way rentals,including to and from Heathrow airport,which can b

84、e parked in public on-street parking spots in designated areas of the city.Payless is a leading rental car supplier serving the deep-value segment of the industry,which we license or operate in approximately 285 locations worldwide,including more than 175 locations operated by licensees and approxim

85、ately 110 Company-operated locations primarily located in North America,the majority of which are at or near major airports.Payless rental fees are often lower than those of larger,more established vehicle rental brands.The Payless business model allows us to extend the life-cycle of a portion of ou

86、r rental fleet,as we“cascade”certain vehicles that exceed certain Avis and Budget age or mileage thresholds to be used by Payless.Table of Contents 7RESERVATIONS,MARKETING AND SALESReservationsOur customers can make vehicle rental reservations through our brand-specific websites and toll-free reserv

87、ation centers,through our brand-specific mobile applications,online travel agencies,travel agents or through selected partners,including many major airlines,associations and retailers.Travel agents can access our reservation systems through all major global distribution systems,which provide informa

88、tion with respect to rental locations,vehicle availability and applicable rate structures.Our Zipcar members can reserve vehicles through Zipcars reservation system,which is accessible online or on a mobile device,by the hour or day,at rates that include fuel,secondary insurance and other costs typi

89、cally associated with vehicle ownership.Marketing and SalesWe support our brands through a range of marketing channels and campaigns,including traditional media as well as digital media,including internet and email marketing,social media,streaming services,and mobile device applications.Our Avis bra

90、nd campaign Plan On Us highlights the trust our customers have in us.We also market through sponsorships of major sports entities and charitable organizations.We utilize a customer relationship management system that enables us to deliver more targeted and relevant offers to customers across online

91、and offline channels,including an expedited and contactless rental process and loyalty programs that reward frequent renters with free rental days and car class upgrades.We are able to reach and merchandise cars and rentals to a diverse demographic of consumers through our strategic partnerships wit

92、h airlines,associations and hotel companies,and we maintain strong links to the travel industry.In addition,we have developed relationships that provide brand exposure and access to new customers,including deals to provide vehicles to ride-hail drivers in cities across North America.In 2024,approxim

93、ately 51%of vehicle rental transactions originating from Avis locations were generated by travelers who rented from Avis under contracts between Avis and their employers or through membership in an organization with which Avis has a contractual affiliation.We offer Avis Budget Group Business Intelli

94、gence,an online portal complete with rental summary dashboards,visualizations and detailed reports that provides our corporate customers with insight into their programs performance,giving them direct access to more data in a customer-facing portal offering useful data insights,including options to

95、customize and schedule reports.Avis also maintains marketing relationships with other travel partners through which we are able to offer their customers incentives to rent from Avis.Additionally,we offer Unlimited Rewards,our loyalty incentive program for travel agents,and Avis and Budget programs f

96、or small businesses that offer discounted rates,central billing options and rental credits to members.Our Zipcar brand utilizes a diverse set of marketing and sales strategies to acquire and engage members,including digital marketing,email and in-app messaging,and social media engagement.Zipcar main

97、tains close relationships with universities that provide access to campuses and various marketing channels to attract students who,upon graduation,may continue their relationship with us.Through our Zipcar for Business program,we also offer direct-bill accounts and employee benefit programs to compa

98、nies and governments that support the use of Zipcar vehicles.Table of Contents 8LICENSINGWe have licensees in approximately 175 countries throughout the world.Royalty fee revenues derived from our vehicle rental licensees in 2024 totaled$143 million,with$104 million in our International segment and$

99、39 million in our Americas segment.Licensed locations are independently operated by our licensees and range from large operations at major airport locations and territories encompassing entire countries to relatively small operations in suburban or rural locations.Our licensees generally maintain se

100、parate independently owned and operated fleets.Royalties generated from licensing provide us with a source of high-margin revenue because there are relatively limited additional costs associated with fees paid by licensees to us.In some geographies we facilitate one-way vehicle rentals between Compa

101、ny-operated and licensed locations,which enables us to offer an integrated network of locations to our customers.We generally enjoy good relationships with our licensees and meet regularly with them at regional,national and international meetings.Our relationships with our licensees are governed by

102、license agreements that grant the licensee the right to operate independently operated vehicle rental businesses in certain territories.Our license agreements generally provide our licensees with the exclusive right to operate under one or more of our brands in their assigned territory.These agreeme

103、nts impose obligations on the licensee regarding its operations,and most agreements restrict the licensees ability to sell,transfer or assign its rights granted under the license agreement or to change the control of its ownership without our consent.The terms of our license agreements,including dur

104、ation,royalty fees and termination provisions,vary based upon brand,territory,and original signing date.Royalty fees are generally structured to be a percentage of the licensees gross rental income.We maintain the right to monitor the operations of licensees and,when applicable,can declare a license

105、e to be in default under its license agreement.We perform audits as part of our program to assure licensee compliance with brand quality standards and contract provisions.Generally,we can terminate license agreements for certain defaults,including failure to pay royalties or to adhere to our operati

106、onal standards.Upon termination of a license agreement,the licensee is prohibited from using our brand names and related marks in any business.In the United States,these license relationships constitute“franchises”under most federal and state laws regulating the offer and sale of franchises and the

107、relationship of the parties to a franchise agreement.We continue to optimize the Avis,Budget and Payless brands by issuing new license agreements and periodically acquiring licensees to grow our revenues and expand our global presence.Discussion of our acquisitions is included in Note 6 Acquisitions

108、 to the Consolidated Financial Statements included in this Annual Report on Form 10-K.OTHER REVENUESIn addition to revenues derived from time and mileage fees from our vehicle rentals and licensee royalties,we generate revenues from our customers through the sale and/or rental of optional ancillary

109、products and services.We offer products to customers that will enhance their rental experience,including:collision and loss damage waivers,under which we agree to relieve a customer from financial responsibility arising from vehicle damage incurred during the rental;additional/supplemental liability

110、 insurance or personal accident/effects insurance products which provide customers with additional protections for personal or third-party losses incurred;products for driving convenience such as fuel service options,roadside assistance services,electronic toll collection services,access to satellit

111、e radio,mobile WiFi devices,GPS navigation and child safety seat rentals;and products that supplement truck rental including automobile towing equipment and other moving accessories,such as hand trucks,furniture pads and moving supplies.We also receive payment from our customers for certain operatin

112、g expenses that we incur,including vehicle licensing fees,as well as airport concession fees that we pay in exchange for the right to operate at airports and other locations.In addition,we collect membership fees in connection with our car sharing business.Table of Contents 9OUR FLEETWe offer a wide

113、 variety of vehicles in our rental fleet,including luxury vehicles,electrified vehicles,specialty-use vehicles and light commercial vehicles.Our fleet consists primarily of vehicles from the current and immediately preceding model year.We maintain a single fleet of vehicles for Avis and Budget in co

114、untries where we operate both brands.A substantial majority of Zipcars fleet is dedicated to use by Zipcar.Fleet PurchasesWe maintain a diverse rental fleet,in which no vehicle brand represented more than 19%of our 2024 fleet purchases,and we regularly adjust our fleet levels to be consistent with a

115、nticipated demand.We participate in a variety of vehicle purchase programs with major vehicle manufacturers.In 2024,we primarily purchased from the following vehicle brands:Toyota,Ford,Chevrolet,Kia,Volkswagen,Hyundai,Jeep,Dodge,Subaru,Honda,Volvo and Genesis.Fleet costs represented approximately 21

116、%of our aggregate expenses in 2024.Fleet costs can vary significantly from year to year based on the prices at which we are able to purchase and dispose of rental vehicles,the mix of risk and program vehicles,holding periods,and overall fleet mix.In 2024,approximately 10%of our average rental fleet

117、was comprised of vehicles subject to agreements requiring automobile manufacturers to repurchase vehicles at a specified price during a specified time period or guarantee our rate of depreciation on the vehicles during a specified period of time;or vehicles subject to operating leases with a fixed l

118、ease period and interest rate.We refer to vehicles subject to these agreements as“program”vehicles and vehicles not subject to these agreements as“risk”vehicles because we retain the risk associated with such vehicles residual values at the time of their disposition.Our agreements with automobile ma

119、nufacturers typically require that we pay more for program vehicles and maintain them in our fleet for a minimum number of months and impose certain return conditions,including vehicle condition and mileage requirements.When we return program vehicles to the manufacturer,we receive the price guarant

120、eed at the time of purchase and are therefore protected from fluctuations in the price of previously-owned vehicles in the wholesale market.In 2024,approximately 30%of the vehicles we disposed of were program vehicles sold pursuant to repurchase or guaranteed depreciation programs.Over the past seve

121、ral years,program vehicles have comprised of a decreasing proportion of our fleet.The approximate percentage of program vehicles in our average rental fleet within each of our reportable segments in 2024 was 46%for International and less than 1%for the Americas.The future percentages of program and

122、risk vehicles in our fleet will depend on several factors,including our expectations for future used vehicle prices,our seasonal needs and the availability and attractiveness of manufacturers repurchase and guaranteed depreciation programs.Fleet DispositionsWe dispose of our risk vehicles largely th

123、rough alternative disposition channels,including direct-to-consumer,online auctions,and direct-to-dealer sales,as well as through more traditional automobile auctions.Alternative disposition channels provide the opportunity to increase speed to sale and vehicle sales prices and also to reduce releva

124、nt fleet costs when compared to selling vehicles at auctions.We sell vehicles direct to consumers through our retail locations and through RubyCar,our online retail sales platform,which offers customers the ability to purchase well-maintained,late-model rental vehicles from our fleet.We dispose of o

125、ur program vehicles in accordance with repurchase or guaranteed depreciation programs with major vehicle manufacturers.Fleet UtilizationIn 2024,our average quarterly vehicle rental fleet size ranged from a low of approximately 667,000 vehicles in the first quarter to a high of approximately 736,000

126、vehicles in the third quarter.Average quarterly fleet utilization for 2024,which is based on the number of rental days(or portion thereof)that vehicles are rented compared to the total amount of time that vehicles are available for rent,ranged from approximately 66%to 72%.Our average car rental flee

127、t size and utilization are typically highest in the summer months.Our calculation of utilization may not be comparable to other companies calculation of similarly titled metrics.Table of Contents 10Fleet MaintenanceWe place a strong emphasis on the quality of our vehicle maintenance for customer saf

128、ety and customer satisfaction reasons,and because quick and proper repairs are critical to fleet utilization.To accomplish this task,we have developed and continue to evolve specialized training programs for our technicians.Our Supply Chain Department reviews,distributes,and makes accessible origina

129、l equipment manufacturer(“OEM”)technical service bulletins that can be retrieved electronically at our repair locations.In addition,we have implemented policies and procedures to promptly address manufacturer recalls as part of our ongoing maintenance and repair efforts to maximize the customer expe

130、rience.CUSTOMER SERVICEOur commitment to delivering a consistently high level of customer service across all of our brands is a critical element of our success and business strategy.Our Customer Led,Service Driven program focuses on continually improving the overall customer experience based on our

131、research of customer service practices,improved customer insights,executing our customer relationship management strategy,delivering customer-centric employee training and leveraging our mobile applications technology and the enriched experience it provides our customers.In addition,our social media

132、 platform allows us to engage with our customers in their preferred channel,which enables us to meet the needs of our customers while promoting our brands to gain more market share and drive customer loyalty.The employees at our Company-operated locations are trained and empowered to resolve many cu

133、stomer issues at the location level.We also continuously track customer-satisfaction levels by sending location-specific surveys to recent customers and utilize detailed reports and tracking to assess and identify ways that we can improve our customer service delivery and the overall customer experi

134、ence.Our location-specific surveys ask customers to evaluate their overall satisfaction with their rental experience and the likelihood that they will recommend our brands,as well as key elements of the rental experience.Results are analyzed in aggregate and by location to help further enhance our s

135、ervice levels to our customers.We also offer rental options that provide greater control,self-service and contactless capabilities.While our mobile applications provide a fast customer experience,a company representative is available to meet customers needs.Our survey platform includes specific ques

136、tions to learn more about individual preferences and find innovative ways to better serve and anticipate our customers needs.AIRPORT CONCESSION AGREEMENTSWe generally operate our vehicle rental and car sharing services at airports under concession agreements with airport authorities,pursuant to whic

137、h we typically make airport concession payments and/or lease payments.In general,concession fees for on-airport locations are based on a percentage of total commissionable revenues(as defined by each airport authority),often subject to minimum annual guaranteed amounts.Concessions are typically awar

138、ded by airport authorities every three to ten years based upon competitive bids.Our concession agreements with the various airport authorities generally impose certain minimum operating requirements,provide for relocation in the event of future construction and in some cases provide for abatement of

139、 the minimum annual guarantee in the event of extended low passenger volume.Table of Contents 11OTHER BUSINESS CONSIDERATIONS SEASONALITYOur operating results are subject to variability due to seasonality,macroeconomic conditions and other factors.Car rental volumes tend to be associated with the tr

140、avel industry,particularly airline passenger volumes,or enplanements,which in turn tend to reflect general economic conditions.Our operations are also seasonal,with the third quarter of the year historically having been our strongest due to the increased level of leisure travel during the quarter.We

141、 have a partially variable cost structure and routinely adjust the size,and therefore the cost,of our rental fleet in response to fluctuations in demand.The following chart presents our quarterly revenues for the years ended December 31,2022,2023 and 2024.MillionsRevenues by Quarter$2,432$3,244$3,54

142、7$2,771$2,557$3,123$3,564$2,764$2,551$3,048$3,480$2,710Q1-2022Q2-2022Q3-2022Q4-2022Q1-2023Q2-2023Q3-2023Q4-2023Q1-2024Q2-2024Q3-2024Q4-2024$0$2,000$4,000COMPETITIONThe competitive environment for our industry is generally characterized by intense price and service competition among global,local and

143、regional competitors.Competition in our vehicle rental operations is based primarily upon price;customer service quality,including usability of booking systems and ease of rental and return;vehicle availability;vehicle condition,age and mileage;rental locations;product innovation and national or int

144、ernational distribution.In addition,competition is also influenced strongly by advertising,marketing,loyalty programs and brand reputation.We believe the prominence and service reputation of our brands,extensive worldwide ownership of mobility solutions and commitment to innovation provides us with

145、a competitive advantage.The use of technology has increased pricing transparency among vehicle rental companies and other mobility solutions providers enabling cost-conscious customers to more easily compare on the Internet and their mobile devices the rates available for the mobility solutions that

146、 fit their needs.This transparency has further increased the prevalence and intensity of price competition in the industry.Our vehicle rental operations compete primarily with Enterprise Holdings,Inc.,which operates the Enterprise,National and Alamo car rental brands;Hertz Global Holdings,Inc.,which

147、 operates the Hertz,Dollar and Thrifty brands;Europcar Mobility Group,which operates the Europcar,Goldcar,InterRent,Buchbinder,Fox Rent A Car and Ubeeqo brands;and Sixt SE.We also compete with smaller local and regional vehicle rental companies for vehicle rental market share,and with ride-hailing c

148、ompanies largely for short length trips in urban areas.Our Zipcar brand also competes with various local and regional mobility companies,including mobility services sponsored by several auto manufacturers,ride-hailing and car sharing companies and other technology players in the mobility industry.Ou

149、r Budget Truck operations in the United States competes with several other local,regional and nationwide truck rental companies including U-Haul International,Inc.,Penske Truck Leasing Corporation,Ryder System,Inc.,Enterprise Truck Rental,and Hertz Global Holdings,Inc.Table of Contents 12INSURANCE A

150、ND RISK MANAGEMENTOur vehicle rental and corporate operations expose us to various types of claims for bodily injury,death and property damage related to the use of our vehicles and/or properties,as well as general employment-related matters stemming from our operations.In addition,we currently purc

151、hase insurance coverage to limit our exposure to legal fees and expenses resulting from cybersecurity breaches.We generally retain economic exposure for liability to third parties arising from vehicle rental and car sharing services in the United States,Canada and Puerto Rico in accordance with the

152、minimum financial responsibility requirements(“MFRs”)and primacy of coverage laws of the relevant jurisdiction.In certain cases,we assume liability above applicable MFRs,up to$5 million per occurrence,other than in cases involving a negligent act on the part of the Company,for which we purchase insu

153、rance coverage for exposures beyond retained amounts from a combination of unaffiliated excess insurers.In Europe,we insure the risk of liability to third parties arising from vehicle rental and car sharing services in accordance with local regulatory requirements primarily through insurance policie

154、s provided by unaffiliated insurers.We retain a portion of the insured risk of liability through local deductibles,and by reinsuring certain risks through our captive insurance subsidiary AEGIS Motor Insurance Limited.AEGIS Motor Insurance Limited reinsures certain risks through unaffiliated compani

155、es,which limits its liabilities.In Australasia,motor vehicle bodily injury insurance coverage is compulsory and provided upon vehicle registration.In addition,we provide our customers with third-party property damage insurance through an unaffiliated third-party insurer.We retain a share of property

156、 damage risk through local deductibles.We offer our United States customers a range of optional insurance products and coverages such as supplemental liability insurance,personal accident insurance,personal effects protection,emergency sickness protection,automobile towing protection and cargo insur

157、ance,which create additional risk exposure for us.When a customer elects to purchase supplemental liability insurance or other optional insurance related products,we typically retain economic exposure to loss,since the insurance is provided by an unaffiliated insurer that is reinsuring its exposure

158、through our captive insurance subsidiary,Constellation Reinsurance Company Limited.Additional personal accident insurance offered to our customers in Europe is provided by a third-party insurer,and primarily reinsured by our Avis Budget Europe International Reinsurance Limited subsidiary.We otherwis

159、e bear these and other risks,except to the extent that the risks are transferred through insurance or contractual arrangements.OUR INTELLECTUAL PROPERTYWe rely primarily on a combination of trademark,trade secret and copyright laws,as well as contractual provisions with employees and third parties,t

160、o establish and protect our intellectual property rights.The service marks“Avis,”“Budget,”and“Zipcar”and related marks or designs incorporating such terms and related logos and marks such as“Plan On Us,”“We Try Harder”and“Own The Trip,Not The Car,”“Preferred,”and“Fastbreak”are material to our vehicl

161、e rental and car sharing businesses.Our subsidiaries and licensees actively use these marks.All of the material marks used by Avis,Budget and Zipcar are registered(or have applications pending for registration)with the U.S.Patent and Trademark Office as well as in foreign jurisdictions.Our subsidiar

162、ies own the marks and other intellectual property,including the Wizard system,used in our business.We also own trademarks and logos related to the“Apex Car Rentals”brand in Australia and New Zealand,the“Payless Car Rental”brand in the United States and several other countries,the“Maggiore”and“Morini

163、 Rent”brands in Italy,the“FranceCars”brand in France and the“Turiscar”brand in Portugal.Our subsidiaries have also filed patent applications pertaining to fleet and connected car technology in the United States and other countries.ENVIRONMENTAL,SOCIAL&GOVERNANCE(“ESG”)We recognize our role as one of

164、 the worlds leading mobility solutions providers.As a result,we are focused on supporting the transition to a low-carbon economy and employ practices designed to promote a more fair,just and equal workplace and community.The Environment:We are committed to offering safe and low-carbon transportation

165、 solutions:Greenhouse Gas Emissions:As our corporate and leisure customers become increasingly aware and concerned about pollution and congestion caused by vehicles,we aim to provide more sustainable Table of Contents 13transportation solutions by leveraging connected vehicle technology and introduc

166、ing more fuel efficient,low emission,and electric vehicles.Sustainable Operations Improvements:We are driving the efficiencies needed to reduce our environmental impact and enhance the sustainability of our operations.These are mainly driven by improvements in vehicle preventive maintenance,the inco

167、rporation of green building practices and by complying with environmental regulations.Carbon Offset Program:We work closely with our corporate customers to help them achieve their environmental impact reduction targets through our carbon offset program.More Sustainable Fleet:We are actively anticipa

168、ting and driving changes in mobility.Connected vehicles are likely to become a common feature worldwide,along with an increased use of electric and shared vehicles,which is why we are building on our core experience,data intelligence and technology to develop entirely new lines of business and exten

169、d our offering and capabilities for our customers,businesses and cities.Our efforts include:Car Sharing:Zipcar continually improves its car sharing technology,which includes its mobile member app,in-vehicle telematics hardware and reservation,fleet management and community management systems.Zipcars

170、 technology platform is key to providing a successful self-service experience for its members and effectively managing a distributed fleet of vehicles and associated parking locations.Connected Vehicles:Connected vehicles support our ability to reduce emissions through a steadfast focus on fleet mai

171、ntenance and optimization.Fleet Efficiency:We offer our customers the opportunity to choose from a wide variety of vehicles,including fuel-efficient,hybrid,or electric vehicles at almost all of our locations.Our fleet consists primarily of vehicles from the current and immediately preceding model ye

172、ar-this ensures the highest possible standards of air emissions control.Social:We believe that our success has its foundation in how we treat our employees.We seek to foster an environment where communication among our employees is open,honest,and respectful;performance is recognized;growth is encou

173、raged;and accomplishmentsindividual and collectiveare celebrated.We also seek to support the well-being and development of the people we employ and the communities in which they work.Our efforts include:Giving Back:We are a global company with local reach in numerous communities around the world.Whe

174、ther we work individually or as a team,doing the right thing and supporting our communities helps employees feel their work is more than just a job,and makes them feel proud to be part of the Avis Budget Group family.As well as encouraging our employees to volunteer in their local communities,we are

175、 committed to supporting a variety of causes and charities that aid people in crisis situations.Supporting Community Resilience:We have developed strong competencies in responding to business disruptions.Whether the disruption is man-made,an extreme weather event or a global health crisis,our busine

176、ss continuity programs are central to how we respond in times of crisis.Our programs focus is on preparing and protecting our people,property and infrastructure.We utilize an“all hands on deck”approach within our incident management and command structure to ensure that we respond as rapidly and effe

177、ctively as possible.We have also developed longstanding partnerships with leading national disaster response agencies,which strengthen our ability to provide support to affected customers,employees and communities.Governance:Our Board of Directors monitors the effectiveness of our policy and decisio

178、n making,including with respect to ESG,on the current and long-term value of our company.Our most recent Corporate Governance documents are available on the Companys website.The information contained on the Companys website is not included in,or incorporated by reference into,this Annual Report on F

179、orm 10-K.Table of Contents 14OUR HUMAN CAPITAL RESOURCES AND MANAGEMENTOur human capital objectives include identifying,recruiting,retaining,incentivizing and integrating our existing and future or prospective employees.Our compensation program is designed to attract,retain and motivate highly quali

180、fied employees and executives.EmployeesAs of December 31,2024,we employed approximately 24,000 people worldwide,of whom approximately 7,000 were employed on a part-time basis.Of our approximately 24,000 employees,approximately 8,000 were employed in our International segment.In our Americas segment,

181、the majority of our employees are at-will employees and,therefore,not subject to any type of employment contract or agreement.In our International segment,we enter into employment contracts and agreements in those countries in which such relationships are mandatory or customary.The provisions of the

182、se agreements correspond in each case with the required or customary terms in the subject jurisdiction.Many of our employees are covered by a variety of union contracts and governmental regulations affecting,among other things,compensation,job retention rights and pensions.We strive to maintain sati

183、sfactory relationships with all of our employees,including the unions and work councils representing these employees.As of December 31,2024,approximately 29%of our employees were covered by collective bargaining or similar agreements with various labor unions.We believe our employee relations are sa

184、tisfactory.We have never experienced a large-scale work stoppage.Employee Benefits Supporting our employees with the right benefits is one of the most important things we do.We understand benefits are a key element to a total reward package,so ensuring we provide meaningful benefit programs and reso

185、urces across the globe is an integral part of how we reward employees,including with respect to healthcare and retirement.As a global company,benefits will vary by country to reflect local practices and cultures,but our commitment to providing comprehensive and meaningful benefits and resources is c

186、onsistent across the world.We continuously review and,when necessary,update our programs to ensure they remain flexible,competitive,and aligned to what is important for our employees and their families.Global Gender Pay EquityTo ensure we are compensating both men and women employees fairly and equi

187、tably,we utilize a global Center of Excellence total rewards function which standardizes and harmonizes our rewards programs across all countries.As a result,we have established pay programs that provide for equal incentive pay opportunity for all employees in same or similar positions across the gl

188、obe.Additionally,we utilize global guidelines and standards to inform compensation decisions for all new hires and promotions.To monitor our performance for our management employees,we evaluate base salary placement relative to our internal salary ranges for men and women.For our hourly field workfo

189、rce(non-management employees),we maintain pay equity through our standardized compensation practices in which all employees begin at the same start rate,based on their location and position,and annual pay increases are applied consistently to all employees based on tenure.Health and SafetyThe health

190、 and safety of our employees is our highest priority because our people are our most valuable asset.Consistent with our operating philosophy,we are committed to safety and our core belief is that health and safety is every employees responsibility,not only for our employees but for our customers,ven

191、dors,and all stakeholders.Well-beingWe take a holistic approach to well-being.We understand that to deliver our best performance,our employees need to be healthy and happy in all areas of their lives.Our well-being program focuses on helping our people achieve all aspects of wellness through encoura

192、ging habits that promote physical,emotional and financial well-being.Table of Contents 15REGULATIONWe are subject to a wide variety of laws and regulations in the countries in which we operate,including those relating to,among others,consumer protection,insurance products and rates,franchising and d

193、istribution,customer privacy and data protection,securities and public disclosure,competition and antitrust,environmental matters,taxes,automobile-related liability,corruption and anti-bribery,labor and employment matters,health and safety,claims management,automotive retail sales,currency-exchange

194、and other various banking and financial industry regulations,cost and fee recovery,the protection of our trademarks and other intellectual property,ESG matters and local ownership or investment requirements.Additional information about the regulations that we are subject to can be found in Part I,It

195、em 1A,“Risk Factors”in this Annual Report on Form 10-K.AVAILABLE INFORMATIONOur principal executive office is located at 379 Interpace Parkway,Parsippany,New Jersey 07054(our telephone number is 973-496-4700).The Company files electronically with the Securities and Exchange Commission(the“SEC”)requi

196、red reports on Form 8-K,Form 10-Q and Form 10-K;proxy materials;registration statements and other forms or reports as required.Certain of the Companys officers,directors and stockholders also file statements of beneficial ownership and of changes in beneficial ownership on Forms 3,4 and 5 with the S

197、EC.Such materials may be accessed electronically on the SECs Internet site(sec.gov).The Company maintains a website()and copies of our annual report on Form 10-K,quarterly reports on Form 10-Q,current reports on Form 8-K,Section 16 reports,proxy materials and any amendments to these reports filed or

198、 furnished with the SEC are available free of charge in the Investor Relations section of our website(),as soon as reasonably practicable after filing with the SEC.Copies of our board committee charters,Codes of Conduct and Ethics,Corporate Governance Guidelines and other corporate governance inform

199、ation are also available on our website.If the Company should decide to amend any of its board committee charters,Codes of Conduct and Ethics or other corporate governance documents,copies of such amendments will be made available to the public through the Companys website.The information contained

200、on the Companys website is not included in,or incorporated by reference into,this Annual Report on Form 10-K.Table of Contents 16 ITEM 1A.RISK FACTORSThe following is a discussion of the risks,uncertainties and assumptions that we believe are material to our business and should be considered careful

201、ly in conjunction with all of the other information set forth in this Annual Report on Form 10-K.Although the risks are organized by headings,and each risk is discussed separately,many are interrelated.In addition to the factors discussed elsewhere in this Annual Report on Form 10-K,the factors desc

202、ribed in this item could,individually or in the aggregate,cause our actual results to differ materially from those described in any forward-looking statements.Should unknown risks or uncertainties materialize or underlying assumptions prove inaccurate,actual results could materially differ from past

203、 results and/or those anticipated,estimated or projected.RISKS RELATED TO OUR INDUSTRY AND THE BROADER ECONOMYWe face risks related to the high level of competition in the mobility industry.The mobility industry is highly competitive,with price being one of the primary factors.To the extent that our

204、 competitors reduce their pricing and we do not provide competitive pricing,or if price increases we implement make us less competitive,we risk losing rental volume,and reducing the chances of success for bids for customer accounts.If competitive pressures lead us to lose rental volume or match any

205、downward pricing and we are unable to reduce our operating costs,then our financial condition or results of operations could be materially adversely impacted.Additionally,pricing in the vehicle rental industry is impacted by the size and age of rental fleets and the supply of vehicles available for

206、rent.Any significant fluctuations in the supply of rental vehicles,including as a result of actions taken by our competitors that increases fleet significantly above market demand,could negatively affect our pricing,operating plans or results of operations.The competitive environment for our mobilit

207、y services has become more intense as additional companies,including automobile manufacturers,ride-hailing companies,car sharing companies and other technology players in the mobility industry enter our existing markets or expand their operations,which may affect demand for rental vehicles.Some of t

208、hese companies may have access to substantial capital,innovative technologies or have the ability to provide services at a relatively low cost.To the extent these companies can improve transportation efficiency,alter driving patterns or attitudes toward vehicle rental,offer more competitive prices,u

209、ndertake more aggressive marketing campaigns,price their competing services below market or otherwise disrupt the mobility industry,we risk heightened pricing competition and/or loss of rental volume,which could adversely impact our business and results of operations.The risk of competition on the b

210、asis of pricing in the truck rental industry can be even more impactful than in the car rental industry as it can be more difficult to reduce the size of our truck rental fleet in response to significantly reduced demand.We face risks related to fleet costs and availability.Fleet costs typically rep

211、resent our single largest expense and can vary from year to year based on the prices that we are able to purchase and dispose of our vehicles.We purchase program vehicles,which are guaranteed a rate of depreciation through agreements with auto manufacturers,and non-program,or risk vehicles.In 2024,o

212、n average approximately 90%of our rental fleet was comprised of risk vehicles.The costs of our risk vehicles are impacted(sometimes negatively)by the relative strength of the used car market,particularly the market for one-to two-year old used vehicles,or potentially by the insolvency or bankruptcy

213、of an auto manufacturer from whom we purchase vehicles.We currently sell risk vehicles through various sales channels in the used vehicle marketplace,including traditional auctions,and alternative disposition channels,including online auctions,direct-to-dealer sales and directly to consumers through

214、 either retail lots or online.These channels may not produce stable vehicle prices in the future,as the market for used vehicles is subject to changes in demand for such vehicles,consumer interests,inventory levels,new car pricing,interest rates,fuel costs,tariffs and general economic conditions.A r

215、eduction in residual values for risk vehicles in our rental fleet could cause us to sustain a substantial loss on the sale of such vehicles or require us to depreciate those vehicles at a more accelerated rate than previously anticipated while we own them.Table of Contents 17If the market value of t

216、he vehicles in our fleet is reduced or our ability to sell vehicles in the used vehicle marketplace were to become severely limited,each of which has occurred in the past and may occur in the future,we may have difficulty meeting collateral requirements under our asset-backed financing facilities,wh

217、ich could lead to decreased capacity in such facilities and effectively increase our fleet costs or adversely impact our profitability.In addition,if we are unable to meet our collateral requirements under such facilities,the outstanding principal amount due may be required to be repaid earlier than

218、 anticipated.If that were to occur,the holders of our asset-backed debt may have the ability to exercise their right to instruct the trustee to direct the return of program vehicles and/or the sale of risk vehicles to generate proceeds sufficient to repay such debt.Program vehicles enable us to dete

219、rmine our depreciation expense in advance of purchase.Our program vehicles also generally provide us with flexibility to reduce the size of our fleet rapidly.This flexibility is negatively affected as the percentage of program vehicles in our fleet is reduced as has been the trend over the last seve

220、ral years,or if the features of the programs provided by auto manufacturers are less favorable.Our inability to reduce the size of our fleet in response to seasonal demand fluctuations,economic constraints or other changes in demand could have an adverse impact on our fleet costs and results of oper

221、ations.Failure by a manufacturer to fulfill its obligations under any program agreement or incentive payment obligation,due to insolvency,bankruptcy or other reasons,could leave us with a material expense if we are unable to dispose of program vehicles at prices estimated at the time of purchase or

222、with a substantial unpaid claim against the manufacturer,particularly with respect to program vehicles that were either(i)resold for an amount less than the amount guaranteed under the applicable program;or(ii)returned to the manufacturer,but for which we were not paid,and therefore we could incur a

223、 substantial loss as a result of such failure to perform.While we source our fleet purchases from a wide range of auto manufacturers,we are exposed to risk to the extent that any auto manufacturer significantly curtails production.Such production may be curtailed as a result of a wide range of facto

224、rs,including impacts of a pandemic and supply chain impacts,including as a result of tariffs and shortages of parts,which have impacted certain manufacturers in the past.We are also exposed to risk to the extent that any auto manufacturer increases the cost of vehicles,including as a result of infla

225、tion,tariffs,labor shortages or disruptions,or supply chain disruptions,or declines to sell vehicles to us on terms or at prices consistent with past practice.Should any of these risks occur,we may be unable to obtain a sufficient number of vehicles to operate our business without significantly incr

226、easing our fleet costs or the mileage of the vehicles in our fleet,or reducing our volumes.We face risks related to safety recalls affecting our vehicles.Our vehicles may be subject to safety recalls by their manufacturers,which could have an adverse impact on our business when we remove recalled ve

227、hicles from our rentable fleet.We can neither control nor predict the number of vehicles that will be subject to manufacturer recalls in the future.Recalls often require us to retrieve vehicles from customers and/or hold vehicles from rental or sale until we can arrange for the repairs described in

228、the recalls to be completed.As such,recalls can increase our costs,negatively impact our revenues and/or reduce our fleet utilization.If a large number of vehicles were to be the subject of one or more recalls,or if needed replacement parts were not in adequate supply,we may be unable to utilize rec

229、alled vehicles for a significant period of time.We may also be subject to material liability claims or regulatory action related to vehicles subject to a safety recall.Depending on the nature and severity of the recall,it could create customer service problems,reduce the residual value of the vehicl

230、es involved,harm our reputation and/or have an adverse impact on our financial condition or results of operations.Weakness or fluctuations in travel demand or general economic conditions,or a significant increase in fuel costs,can adversely impact our business.Demand for vehicle rentals is generally

231、 subject to and impacted by international,national and local economic conditions and travel demand,which can be impacted by many factors,including inflation.When travel demand or economic conditions in the United States,Europe and/or worldwide weaken,our financial condition and results of operations

232、 are often adversely impacted.Table of Contents 18Any significant airline capacity reductions,airfare or related fee increases,reduced flight schedules,or any events that disrupt or reduce business or leisure air travel or weaken travel demand and tourism,globally or in the key areas in which we ope

233、rate,such as work stoppages,military conflicts,terrorist incidents,natural disasters,disease epidemics,or the response of governments to any such events,could have an adverse impact on our results of operations.For example,events of a global nature such as the COVID-19 pandemic have had,and may in t

234、he future have,material impacts on the Company.In addition,any significant increases in fuel prices,a severe protracted disruption in fuel supplies or rationing of fuel,or severe inflation that disrupts consumers discretionary spending patterns could discourage our customers from renting vehicles or

235、 reduce or disrupt air travel,which could also adversely impact our results of operations.Our truck rental business can be impacted by the housing market.If conditions in the housing market were to weaken,we may see a reduction in truck rental transactions,which could have an adverse impact on our b

236、usiness.Our truck rental business can also be impacted by changes in the light commercial business sector.If the light commercial business develops their own package delivery service with a fleet of trucks and vans to use for their business,or other large competitors enter the package delivery servi

237、ce industry,in particular around the holiday season,we may see a reduction in truck rental transactions,which could have an adverse impact on our business.We face risks related to political,economic and commercial instability or uncertainty in the countries in which we operate.Our global operations

238、expose us to risks related to international,national and local economic and political conditions and instability.Operating our business in a number of different regions and countries exposes us to a number of other risks,including:multiple and potentially conflicting laws,regulations,trade policies

239、and agreements,and varying tax regimes that are subject to change;the imposition of currency restrictions,restrictions on repatriation of earnings or other restraints,as well as difficulties in obtaining financing in foreign countries for local operations;potential changes to import-export laws,trad

240、e treaties or tariffs in the countries where we purchase vehicles;international trade disruptions or disputes;local ownership or investment requirements,or compliance with local laws,regulations or business practices;uncertainty and changes to political and regulatory regimes as a result of changing

241、 social,political,regulatory and economic environments in the United States and internationally;national and international conflict,including terrorist acts;andpolitical and economic instability or civil unrest that may severely disrupt economic activity in affected countries.Exposure to these risks

242、 may adversely impact our financial condition or results of operations.Our licensees vehicle rental operations may also be impacted by these risks,which in turn could impact the amount of royalty payments they make to us.Table of Contents 19Ongoing military conflicts,including in Eastern Europe,are

243、causing uncertainty that may have an adverse impact on our business,financial condition and results of operations.The world economy and markets are experiencing volatility and disruption from ongoing military conflicts,including in Eastern Europe,the length and impact of which are highly unpredictab

244、le.These conflicts have led to,and could in the future lead to,significant volatility in our costs,including fuel and fleet costs,including as a result of sanctions or any embargoes on oil sales imposed on or by the Russian government;impacts to fleet availability;and impacts on demand for travel as

245、 a result of weakness in economic conditions,increased inflation or increases in the cost of fuel as well as other factors.In addition,as a result of the conflict in Eastern Europe,governmental and non-governmental entities have issued alerts noting the potential for increased cyber-attacks.Such ris

246、ks and disruptions could adversely impact our business,results of operations and financial condition.RISKS RELATED TO THE NATURE OF OUR BUSINESSDamage to our reputation or brands may negatively impact our business.Our reputation and global brands are integral to the success of our business.Maintenan

247、ce of our Companys reputation and brands depends on many factors,including the quality of our products and services and the trust we maintain with our customers.Negative claims or publicity regarding our Company or our operations,offerings,practices,among many other things,may damage our brands or r

248、eputation,even if such claims are untrue.Damage to our reputation or brands could adversely impact our revenue and profitability.We face risks related to third-party distribution channels that we rely upon.We rely upon third-party distribution channels to generate a significant portion of our vehicl

249、e rental reservations,including:traditional and online travel agencies,airlines and hotel companies,marketing partners such as credit card companies and membership organizations and other entities that help us attract customers;and global distribution systems(“GDS”)that connect travel agents,travel

250、service providers and corporations to our reservation systems.Changes in our pricing agreements,commission schedules or arrangements with third-party distribution channels,the termination of any of our relationships or a reduction in the transaction volume of such channels,or a GDSs inability to pro

251、cess and communicate reservations to us could have an adverse impact on our financial condition or results of operations.We face risks related to our property leases and vehicle rental concessions.We have property leases or vehicle rental concessions at locations throughout the world,including at mo

252、st airports where we operate and at train stations throughout Europe,where vehicle rental companies are frequently required to bid periodically for space at these locations.If we were to lose a property lease or vehicle rental concession,particularly at an airport or a train station in a major metro

253、politan area,there can be no assurance that we would be able to find a suitable replacement location on reasonable terms,which could adversely impact our business.Most leases and airport concessions have fixed obligations that can be required even if our volume drops significantly.While we have been

254、 successful at partially mitigating some of these requirements in the past,including when enplanements have decreased significantly,there is no guarantee that we will be able to do so in the future,and if we are not successful our costs as a percentage of revenue could increase.We face risks related

255、 to the seasonality of our business.In our business,the third quarter of the year has historically been our most profitable quarter,as measured by net income and Adjusted EBITDA,due primarily to the increased level of summer leisure travel.We vary our fleet size over the course of the year to help m

256、anage seasonal variations in demand,as well as localized changes in demand that we may encounter in the various regions in which we operate.Any circumstance or occurrence that disrupts rental activity during the third quarter,especially in North America and Europe,could have a disproportionately adv

257、erse impact on our financial condition or results of operations.Table of Contents 20We face risks related to acquisitions,including the acquisition of existing licensees or investments in or partnerships with other related businesses.We may engage in strategic transactions,including the acquisition

258、of,or investment in,existing licensees and/or other businesses,partnerships or joint ventures.The risks involved in engaging in these types of transactions include the possible failure to successfully integrate the operations of acquired businesses,or to realize expected benefits within the anticipa

259、ted time frame,or at all,such as cost savings,synergies,sales and growth opportunities.In addition,the integration of an acquired business or oversight of a partnership or joint venture may result in material unanticipated challenges,expenses,liabilities or competitive responses,including:inconsiste

260、ncies between our standards,procedures and policies and those of an acquired business,partnership and/or joint venture;costs or inefficiencies associated with the integration of our operational and administrative systems;the increased scope and complexity of our operations could require significant

261、attention from management and could impose constraints on our operations or other projects;unforeseen expenses,delays or conditions,including required regulatory or other third-party approvals or consents,or provisions in contracts with third parties that could limit our flexibility to take certain

262、actions;an inability to retain the customers,employees,suppliers and/or marketing partners of an acquired business,partnership or joint venture or generate new customers or revenue opportunities through a strategic partnership;the costs of compliance with local laws and regulations and the implement

263、ation of compliance processes,as well as the assumption of unexpected liabilities,litigation,penalties or other enforcement actions;exposure to undetected malware and viruses embedded in the acquired IT systems of the acquired entity;andhigher than expected costs arising due to unforeseen changes in

264、 tax,trade,environmental,labor,safety,payroll or pension policies.Any one of these factors could result in delays,increased costs or decreases in the amount of expected revenues related to or derived from a strategic transaction and could adversely impact our financial condition or results of operat

265、ions.We face risks related to vehicle electrification.Vehicle electrification refers to a range of technologies that use electricity to propel a vehicle and includes hybrid,plug-in,extended-range and battery electric vehicles,as well as autonomous vehicles.We believe that the vehicle industry will c

266、ontinue to experience significant change in the coming years,in particular as it relates to vehicle electrification.Worldwide demand for electric and hybrid vehicles continues to increase,and manufacturers continue to invest more time and cost into producing these types of vehicles in an effort to r

267、educe fuel consumption and greenhouse gas emissions,as mandated by various governmental standards and regulations.If we are not adequately prepared to meet consumer demand for electric,hybrid and autonomous vehicles as such demand develops,including if we are unable to attain an optimal and consiste

268、ntly reliable charging infrastructure and systems,which will require substantial capital investment,or if consumer demand for electric,hybrid and autonomous vehicles fails to meet our expectations,including due to slower or inadequate investments in charging infrastructure by third parties,changes i

269、n governmental regulations,rebates and subsidies,or changes in consumer sentiment,our financial condition or results of operations could be adversely impacted.Table of Contents 21We face risks related to liability and insurance.Our global operations expose us to several forms of liability,including

270、claims for bodily injury,death and property damage related to the use of our vehicles,or for having our customers or other parties on our premises,as well as workers compensation and other claims.We may become exposed to uninsured liability at levels in excess of our historical levels,or increases i

271、n the number of incidents or the cost per incident,which has recently occurred and may continue in the future,which may cause us to exceed the level of our reserves and could adversely impact our financial condition and results of operations.This impact could occur for a variety of reasons,including

272、 increased severity and/or instances of weather and climate-related events and overall liability loss trends.Furthermore,insurance with unaffiliated insurers may not continue to be available to us on economically reasonable terms or at all.Should we be subject to an adverse ruling or judgment,or exp

273、erience other significant liability for which we did not plan and were not adequately insured,our results of operations,financial position or cash flows could be negatively impacted.We reinsure certain insurance exposures as well as offer optional insurance coverages through unaffiliated third-party

274、 insurers that then reinsure all or a portion of their risks through our insurance company subsidiaries,which subjects us to regulation under various insurance laws and statutes.Any changes in regulations that alter or impede our reinsurance obligations or insurance subsidiary operations,or any nega

275、tive regulatory or other legal action against us with respect to our reinsurance,could adversely impact the economic benefits that we rely upon to support our reinsurance efforts,which in turn would adversely impact our financial condition or results of operations.Optional insurance products that we

276、 offer to renters in the United States,including,but not limited to,supplemental or additional liability insurance,personal accident insurance and personal effects protection,are regulated under state laws.Our vehicle rental operations outside the United States must also comply with certain local la

277、ws and regulations regarding the sale of personal accident and effects insurance by intermediaries.Any changes in law that affect our operating requirements with respect to our sale of optional insurance products could increase our costs of compliance or make it uneconomical to offer such products,w

278、hich would lead to a reduction in revenue and profitability.Should more of our customers decline to purchase optional liability insurance products as a result of any changes in these laws,or otherwise,our financial condition or results of operations could be adversely impacted.We offer loss damage w

279、aivers to our customers as an option for them to reduce their financial responsibility that may be incurred as a result of loss or damage to the rental vehicle.Certain states in the United States have enacted legislation that mandates disclosure to each customer and some states have statutes that es

280、tablish or cap the daily rate that can be charged for loss damage waivers.Should new laws or regulations arise that place new limits on our ability to offer loss damage waivers to our customers,our financial condition or results of operations could be adversely impacted.Additionally,current United S

281、tates federal law pre-empts state laws that impute tort liability based solely on ownership of a vehicle involved in an accident.If such federal law were to change,our insurance liability exposure could materially increase.We may be unable to collect amounts that we believe are owed to us by custome

282、rs,insurers and other third parties related to vehicle damage claims or liabilities.The inability to collect such amounts in a timely manner or to the extent that we expect could adversely impact our financial condition or results of operations.We face risks related to fluctuations in currency excha

283、nge rates.Our operations generate revenue and incur operating costs in a variety of currencies.The financial position and results of operations of many of our foreign subsidiaries are reported in the relevant local currency and then translated to United States dollars at the applicable currency exch

284、ange rate for inclusion in our Consolidated Financial Statements.Changes in exchange rates among these currencies and the U.S.dollar have affected,and will continue to affect,among other things,the recorded levels of our assets and liabilities in our Consolidated Financial Statements.While we take s

285、teps to manage our currency exposure,such as currency hedging,we may not be able to effectively limit our exposure to intermediate or long-term movements in currency exchange rates,which could adversely impact our financial condition or results of operations.Table of Contents 22We face risks related

286、 to our derivative instruments.We typically utilize derivative instruments to manage fluctuations in foreign exchange rates,interest rates and fuel prices.The derivative instruments we use to manage our risk are usually in the form of interest rate swaps and caps and foreign exchange and commodity c

287、ontracts.Periodically,we are required to determine the change in fair value,called the“mark-to-market,”of some of these derivative instruments,which could expose us to substantial mark-to-market losses or gains if such rates or prices fluctuate materially from the time we entered into the derivative

288、s.Accordingly,volatility in rates or prices may adversely impact our financial position or results of operations and could impact the cost and effectiveness of our derivative instruments in managing our risks.We have in the past been,and may in the future be,impacted by impairment charges.We carry a

289、 significant amount of goodwill and long-lived assets on our Consolidated Balance Sheets.Goodwill is the excess of purchase price over the fair value of the net assets of acquired businesses.We assess goodwill and long-lived assets for impairment if circumstances suggest an impairment may have occur

290、red,and annually for goodwill and indefinite-lived intangible assets.We have determined in the past and may again determine in the future that a significant impairment has occurred in the value of our goodwill and long-lived assets.Additionally,we have a significant amount of goodwill and long-lived

291、 assets that could also be subject to impairment.If we determine that an impairment has occurred in the value of our goodwill or long-lived assets,we could be required to write off a portion of our goodwill or long-lived assets,which could adversely affect our consolidated financial condition or our

292、 reported results of operations.For example,to decrease our fleet age for competitive reasons,in the fourth quarter of 2024 we accelerated our plans with respect to certain fleet rotations and shortened the useful life associated with such vehicles,which resulted in an impairment charge.See“Manageme

293、nts Discussion and Analysis of Financial Condition and Results of Operations Results of Operations”and Note 2 Summary of Significant Accounting Policies Impairment of Long-Lived Assets to our Consolidated Financial Statements.RISKS RELATED TO LEGAL,REGULATORY AND ENVIRONMENTAL,SOCIAL,AND GOVERNANCE(

294、“ESG”)RELATED MATTERSCosts associated with lawsuits,investigations or increases in legal reserves that we establish based on our assessment of contingent liabilities may have an adverse effect on our results of operations.Our global operations expose us to various claims,lawsuits and other legal pro

295、ceedings that arise in and outside of the ordinary course of our business in the countries in which we operate.We are or may be subject to complaints and/or litigation involving our customers,licensees,employees,independent operators and others with whom we conduct business and other third parties,i

296、ncluding claims for bodily injury,death and property damage related to use of our vehicles or our locations,or claims based on allegations of discrimination,misclassification as exempt,wage and hour pay disputes or allegations related to our business practices,and various other claims.We could be su

297、bject to substantial costs and/or adverse outcomes from such claims,which could have a material adverse effect on our financial condition,cash flows or results of operations.At some of our locations,we outsource to third-party independent contractors who operate the business as a separate entity and

298、 we pay these independent contractors a commission for operating their business under our brands.There is a growing trend in the United States aimed at the gig economy to define independent contractors as employees.As such,we are subject to legislative and or judicial determination that any such cha

299、nges are applicable to these independent contractors.Such determinations may require us to change the business operations and make such independent contractor locations employee operated.This could potentially expose us to additional costs and material liability under federal and state labor and emp

300、loyment and tax laws.From time to time,our Company is reviewed or investigated by government regulators,which could lead to tax assessments,enforcement actions,fines and penalties or the assertion of private litigation claims.It is not possible to predict with certainty the outcome of claims,investi

301、gations and lawsuits,which could have an adverse impact on our financial condition or results of operations.In addition,while we maintain insurance coverage with respect to exposure for certain,but not all,types of legal claims,we may not be able to obtain such insurance on acceptable terms in the f

302、uture,if at all,and any such insurance may not provide adequate coverage against any such claims.Table of Contents 23We face risks related to laws and regulations that could impact our global operations.We are subject to multiple,and sometimes conflicting,laws and regulations in the countries in whi

303、ch we operate that relate to,among others,consumer protection,competition and antitrust,customer privacy and data protection,securities and public disclosure,automotive retail sales,franchising,corruption and anti-bribery,environmental matters,taxes,automobile-related liability,labor and employment

304、matters,cost and fee recovery,currency-exchange and other various banking and financial industry regulations,health and safety,insurance rates and products,claims management,protection of our trademarks and other intellectual property and other trade-related laws and regulations.We cannot predict th

305、e nature,scope or effect of future regulatory requirements to which our global operations may be subject or the manner in which existing or future laws may be administered or interpreted.Any alleged or actual violations of any law or regulation,change in law,regulation,trade treaties or tariffs,or c

306、hanges in the interpretation of existing laws or regulations may subject us to government scrutiny,investigation and civil and criminal penalties,limit our ability to provide services in any of the countries in which we operate and could result in a material adverse impact on our reputation,business

307、,financial position or results of operations.In certain countries where we have Company-operated locations,we may recover certain costs from consumers,including costs associated with the title and registration of our vehicles,or concession costs imposed by an airport authority or the owner and/or op

308、erator of the premises from which our vehicles are rented.We may in the future be subject to potential laws or regulations that could negatively impact our ability to separately state,charge and recover such costs,which could adversely impact our financial condition or results of operations.We are s

309、eeking Advanced Pricing Agreements with certain tax authorities to obtain certainty regarding our transfer pricing policy.While this effort is ongoing,the process of negotiating and ultimately entering into these agreements has been lengthy and may take several more years.The ultimate results of our

310、 negotiations of these agreements with tax authorities,the expiration of such agreements,or changes in circumstances or in the interpretation of such agreements could increase our tax costs in these jurisdictions,including through the assessment of significant interest charges and/or penalties if no

311、n-compliance is adjudicated.To the extent we do not have an existing Advanced Pricing Agreement or other agreement,governmental authorities could challenge our transfer pricing policy in the future and,if challenged,we may not prevail,which could increase our tax costs or reduce savings related to o

312、ur transfer pricing policy.We face risks related to environmental laws and regulations.We are subject to a wide variety of environmental laws and regulations in connection with our operations,including,among other things,with respect to the ownership or use of tanks for the storage of petroleum prod

313、ucts such as gasoline,diesel fuel and motor and used oils;the treatment or discharge of waste waters;and the generation,storage,transportation and off-site treatment or disposal of solid or liquid wastes.We maintain liability insurance covering storage tanks at our locations.In the United States,we

314、administer an environmental compliance program designed to ensure that these tanks are properly registered in the jurisdiction in which they are located and are in compliance with applicable technical and operational requirements.The tank systems located at each of our locations may not at all times

315、 remain free from undetected leaks,and the use of these tanks has resulted in,and from time to time in the future may result in,spills,which may be significant and may require remediation and expose us to material uninsured liability or liabilities in excess of insurance.We may also be subject to re

316、quirements related to the remediation of substances that have been released into the environment at properties owned or operated by us or at properties to which we send substances for treatment or disposal.Such remediation requirements may be imposed without regard to fault and liability for environ

317、mental remediation can be substantial.These remediation requirements and other environmental regulations differ depending on the country where the property is located.We have made,and will continue to make,expenditures to comply with environmental laws and regulations,including,among others,expendit

318、ures for the remediation of impacts at our owned and leased properties,as well as impacts at other locations at which our wastes have reportedly been identified.Our compliance with existing or future environmental laws and regulations may,however,require material expenditures by us or otherwise have

319、 an adverse impact on our financial condition or results of operations.Table of Contents 24Governments are likely to continue to pursue measures related to climate change and greenhouse gas emissions,including vehicle travel restrictions.Should rules establishing limitations on greenhouse gas or oth

320、er emissions or rules imposing fees on entities deemed to be responsible for greenhouse gas emissions,or rules establishing bans on diesel or fuel vehicles from entering certain locations become effective in the countries in which we operate,demand for our services could be affected,our fleet and/or

321、 other costs could increase,and our business could be adversely impacted.We face risks related to ESG matters.The growing focus on climate change,heightened societal expectations for companies to address environmental and social matters,and the proliferation of ESG related regulations and laws relat

322、ing to disclosures and otherwise,both domestically(including in California)and globally(especially in the European continent)pose risks to our business.These developments could lead to increased operational and compliance costs,shifts in consumer and customer preferences toward substitute products,r

323、educed demand for our offerings,and potential impacts on profitability.Additionally,these factors,as well as our action or inaction with respect to ESG matters,may result in heightened regulatory or public scrutiny,increased litigation,reputational damage,and adverse effects on our revenue,stock pri

324、ce and/or access to capital markets.We have developed certain initiatives,goals and practices relating to ESG matters.We may not be successful in implementing these initiatives,goals and practices,including due to factors beyond our control,and even if successful,they may not achieve our desired or

325、expected outcomes.If our ESG initiatives,goals,and practices do not meet our expectations,those of our investors or other stakeholders,or requirements of local rules and regulations,each of which continue to evolve,we may incur additional costs,and our brand,reputation and results of operations and

326、financial condition may be adversely impacted.In addition,organizations that provide information to investors on corporate governance and related matters have developed ratings processes for evaluating companies on their approach to ESG matters.Such ratings are used by some investors to inform their

327、 investment and voting decisions.Unfavorable ESG ratings and investment community divestment initiatives may lead to negative publicity or investor sentiment toward us and to the diversion of investment to other industries,which could have a negative impact on our stock price and our access to and c

328、osts of capital.We face risks related to franchising or licensing laws and regulations.We license to third parties the right to operate locations using our brands in exchange for royalty payments.Our licensing activities are subject to various laws and regulations in the countries in which we operat

329、e.In particular,laws in the United States require that we provide extensive disclosure to prospective licensees in connection with licensing offers and sales,as well as comply with franchise relationship laws that could limit our ability to,among other things,terminate license agreements or withhold

330、 consent to the renewal or transfer of these agreements.We are also subject to certain regulations affecting our license arrangements in Europe and other international locations.Should our operations become subject to new laws or regulations that negatively impact our ability to engage in licensing

331、activities,our financial condition or results of operations could be adversely impacted.We face risks related to the actions of,or failures to act by,our licensees,dealers,independent operators or third-party vendors.Our vehicle rental licensee and dealer locations are independently owned and operat

332、ed.We also operate many of our Company-owned locations through agreements with independent operators,which are third-party independent contractors who receive commissions to operate such locations.We also enter into service contracts with various third-party vendors that provide services for us or i

333、n support of our business.Under our agreements with our licensees,dealers,independent operators and third-party vendors(collectively referred to as“third-party operators”),the third-party operators retain control over the employment and management of all personnel at their locations or in support of the services that they provide our Company.These agreements also generally require that third-party