Thrifty Car Rental 2006 Annual Report Download - page 76

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Future minimum rentals and fees under noncancelable operating leases and the Company’s
obligations for minimum airport concession fees at December 31, 2006 are presented in the
following table:
Company-Owned
Stores Operating
Concession Fees Leases Total
(In Thousands)
2007 70,260$ 42,983$ 113,243$
2008 52,684 30,609 83,293
2009 39,171 22,328 61,499
2010 32,651 16,725 49,376
2011 25,639 11,447 37,086
Thereafter 104,617 89,580 194,197
325,022 213,672 538,694
Less sublease rental income - (617) (617)
325,022$ 213,055$ 538,077$
Vehicle Insurance Reserves
The Company is self insured for a portion of vehicle insurance claims. In general, the Company
retained the risk for the first $2,000,000 of loss per occurrence for public liability and property
damage claims, including third-party bodily injury and property damage, in 2005 and 2004, plus a
self-insured corridor of $1,000,000 per occurrence for losses in excess of $2,000,000 with an
aggregate limit of $3,000,000 for losses within this corridor. In March 2006, the Company increased
its retained risk of loss to $4,000,000 per occurrence for public liability and property damage claims,
including third-party bodily injury and property damage, plus a self-insured corridor of $1,000,000
per occurrence for losses in excess of $4,000,000 with an aggregate limit of $7,000,000 for losses
within this corridor. The Company maintains insurance for losses above these levels.
The Company continues to retain the risk of loss on supplemental liability insurance (“SLI”) policies
sold to vehicle rental customers.
The accrual for Vehicle Insurance Reserves includes amounts for incurred and incurred but not
reported losses. Such liabilities are necessarily based on actuarially determined estimates and
management believes that the amounts accrued are adequate. At December 31, 2006 and 2005,
the public liability and property damage amounts have been discounted at 4.7% and 4.4% (assumed
risk free rate), respectively, based upon the actuarially determined estimated timing of payments to
be made in future years. Discounting resulted in reducing the accrual for public liability and property
damage by $5,720,000 and $5,877,000 at December 31, 2006 and 2005, respectively. SLI amounts
are not discounted. Estimated future payments of Vehicle Insurance Reserves as of December 31,
2006 are as follows (in thousands):
2007 35,324$
2008 17,779
2009 12,044
2010 7,480
2011 4,365
Thereafter 2,343
Aggregate undiscounted public liability and property damage 79,335
Effect of discounting (5,720)
Public liability and property damage, net of discount 73,615
Supplemental liability insurance 30,306
Total Vehicle Insurance Reserves 103,921$
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