Thrifty Car Rental 2006 Annual Report Download - page 64

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9. GOODWILL
The Company has elected to perform the annual impairment test on goodwill during the second
quarter of each year, unless circumstances arise that require more frequent testing. During the
second quarter of 2006, the Company completed the annual impairment test of goodwill and
concluded goodwill was not impaired.
The changes in the carrying amount of goodwill for the years ended December 31, 2006 and 2005,
are as follows:
2006 2005
Beginning balance 280,122$ 279,907$
Effect of change in rates used for
foreign currency translation (19) 215
Ending balance 280,103$ 280,122$
December 31,
(In Thousands)
As referenced in Note 8, the Company adopted EITF No. 04-1 on January 1, 2005 which impacts
the way in which the Company accounts for business combination transactions through establishing
a separately identifiable intangible asset, other than goodwill, for reacquired franchise rights.
10. VEHICLE DEBT AND OBLIGATIONS
Vehicle debt and obligations consist of the following (in thousands):
2006 2005
Asset backed notes:
2006 Series notes 600,000$ -$
2005 Series notes 400,000 400,000
2004 Series notes 500,000 500,000
2003 Series notes 312,500 375,000
2001 Series notes - 233,333
1,812,500 1,508,333
Discounts on asset backed notes (32) (41)
Asset backed notes, net of discount 1,812,468 1,508,292
Conduit Facility 425,000 375,000
Commercial paper, net of discount of $1,305 and $2,554 178,951 561,155
Other vehicle debt 220,735 166,183
Limited partner interest in limited partnership 107,130 114,322
Total vehicle debt and obligations 2,744,284$ 2,724,952$
December 31,
Asset Backed Notes are comprised of rental car asset backed notes issued by RCFC in March
2006 (the “2006 Series notes”), April 2005 (the “2005 Series notes”), May 2004 (the “2004 Series
notes”), March 2003 (the “2003 Series notes”) and March 2001 (the “2001 Series notes”).
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