Thrifty Car Rental 2006 Annual Report Download - page 63

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7. PROPERTY AND EQUIPMENT
Major classes of property and equipment consist of the following:
2006 2005
Land 13,028$ 12,814$
Buildings and improvements 20,078 18,929
Furniture and equipment 87,407 80,428
Leasehold improvements 114,899 101,523
Construction in progress 12,620 10,459
248,032 224,153
Less accumulated depreciation and amortization (131,245) (116,091)
116,787$ 108,062$
December 31,
(In Thousands)
8. INTANGIBLE ASSETS
2006 2005
Amortized intangible assets
Software and other intangible assets 65,521$ 55,305$
Less accumulated amortization (36,997) (30,577)
28,524 24,728
Unamortized intangible assets
Reacquired franchise rights 37,636 3,542
Total intangible assets 66,160$ 28,270$
December 31,
(In Thousands)
As discussed in Note 4, the Company adopted the provisions of EITF No. 04-1 on January 1, 2005.
In applying the provisions of EITF No. 04-1 to the acquisitions completed during the years ended
December 31, 2006 and 2005, the Company established an unamortized separately identifiable
intangible asset, referred to as reacquired franchise rights. Intangible assets with indefinite useful
lives, such as reacquired franchise rights, are not amortized, but are subject to impairment testing
annually, or more frequently if events and circumstances indicate there may be an impairment. The
Company has elected to perform the annual impairment test on the indefinite lived intangible assets
during the fourth quarter of each year, unless circumstances arise that require more frequent testing.
During the fourth quarter of 2006, the Company completed its annual impairment test of each
reacquired franchise right and concluded no impairment was indicated.
Intangible assets with finite useful lives are amortized over their respective useful lives. The
aggregate amortization expense recognized for the software and other intangible assets subject to
amortization was $6,410,000, $6,088,000 and $5,547,000 for the years ended December 31, 2006,
2005 and 2004, respectively. The estimated aggregate amortization expense for assets existing at
December 31, 2006 for each of the next five years is as follows: $6,800,000, $7,100,000,
$5,900,000, $4,300,000 and $3,200,000.
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