001-10308 AVIS BUDGET GROUP, INC. ( Our brands offer a range of options, from car and truck rental to car sharing. The following graphs present the approximate composition of our revenues in 2020. 5Table of Contents* Includes Budget Truck.** Includes Zipcar and other operating brands.*** In 2019, the mix for revenues by market was 64% airport and 36% off-airport. In 2020, these royalty fees totaled approximately 1% of our Avis revenues. 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. Our licensees generally maintain separate independently owned and operated fleets. In addition, we collect membership fees in connection with our car sharing business. To accomplish this task, we developed specialized training programs for our technicians. We retain a share of property damage risk through AEGIS Motor Insurance Limited. Our People: We believe that our success has its foundation in how we treat our employees. We run numerous recruitment programs that aim to give back to our local communities. Diversity, Inclusion and BelongingWe embrace diversity and inclusion. Well-beingWe take a holistic approach to well- being. Such materials may be accessed electronically on the SEC's Internet site (sec.gov). We could experience similar casualty losses in other overflow parking lots. We could also face liability claims related to vehicles subject to a safety recall. Our truck rental business can be impacted by the housing market. Our reputation and global brands are integral to the success of our business. 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 face risks related to vehicle electrification. Our operations generate revenue and incur operating costs in a variety of currencies. We face risks related to our derivative instruments. We maintain liability insurance covering storage tanks at our locations. Our vehicle rental licensee and dealer locations are independently owned and operated. We face risks related to potential increases in interest rates. Threats to network and data security are becoming increasingly diverse and sophisticated. We cannot predict the prices at which our common stock will trade. The repurchase program has no set expiration or termination date. In addition, the duration of the pandemic is uncertain. We have revised our definition of Adjusted EBITDA to exclude COVID-19 charges. Operating expenses increased to 61.5% of revenue during 2020 compared to 51.2% in 2019. In May 2020, we issued $500 million of 10½% Senior Secured Notes due May 2025. In such event, we would then be required to record a charge, which would impact earnings. We are exclusively an end user of these instruments. There are certain limitations inherent in the sensitivity analyses discussed below. We use interest rate swaps and caps to manage our exposure to interest rate movements. We conducted our audit in accordance with the standards of the PCAOB. EXHIBITS, FINANCIAL STATEMENT SCHEDULES ITEM 15(A)(1). We believe that our audits provide a reasonable basis for our opinion. Any adjustments to depreciation are made prospectively. Currently loyalty points expire after 12 months of member inactivity. As a matter of policy, derivatives are not used for trading or speculative purposes. All derivatives are recorded at
