Dollar Rent A Car 2011 Annual Report Download - page 65

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3. RECEIVABLES
Receivables consist of the following:
December 31,
2011 2010
(In Thousands)
Trade accounts receivable and other $ 74,403 $ 68,528
Vehicle manufacturer receivables 21,510 4,543
Car sales receivable 2,287 1,100
98,200 74,171
Less: Allowance for doubtful accounts (2,840) (4,715)
$ 95,360 $ 69,456
Trade accounts receivable and other include primarily amounts due from rental customers, franchisees and tour operators arising from billings
under standard credit terms for services provided in the normal course of business.
Vehicle manufacturer receivables include primarily amounts due under guaranteed residual, buyback and Non-Program Vehicle incentive programs,
which are paid according to contract terms and are generally received within 60 days.
Car sales receivable include primarily amounts due from car sale auctions for the sale of both Program Vehicles and Non-Program Vehicles.
Allowance for doubtful accounts represents potentially uncollectible amounts owed to the Company from franchisees, tour operators, corporate
account customers and others.
4. REVENUE–EARNING VEHICLES
Revenue-earning vehicles consist of the following:
December 31,
2011 2010
(In Thousands)
Revenue-earning vehicles $ 1,858,766 $ 1,668,473
Less: Accumulated depreciation (390,931) (326,651)
$ 1,467,835 $ 1,341,822
The Company has multi-year vehicle supply agreements with both Chrysler and Ford Motor Company covering vehicle purchases through the 2012
and 2013 model years, respectively, and has an annual vehicle purchase agreement with General Motors Company covering vehicle purchases through
the 2012 model year. See Note 14 for the amount of outstanding vehicle purchase commitments.
The Company acquires both Program and Non-Program Vehicles from various manufacturers and receives payments under its various supplier
agreements for promotional payments, incentives primarily related to the disposal of revenue-earning vehicles and interest reimbursement for Program
Vehicles while at auction and for certain delivery related interest costs.
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