Thrifty Car Rental 2010 Annual Report Download - page 68

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4. RECEIVABLES
Receivables consist of the following:
2010 2009
Trade accounts receivable and other 68,528$ 76,304$
Vehicle manufacturer receivables 4,543 30,194
Car sales receivable 1,100 5,677
74,171 112,175
Less allowance for doubtful accounts (4,715) (7,530)
69,456$ 104,645$
December 31,
(In Thousands)
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. This receivable does not include expected
payments on Program Vehicles remaining in inventory as those residual value guarantee
obligations are not triggered until the vehicles are sold.
Car sales receivable include primarily amounts due from car sale auctions for the sale of both
Program 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.
5. REVENUE–EARNING VEHICLES
Revenue-earning vehicles consist of the following:
2010 2009
Revenue-earning vehicles 1,668,473$ 1,608,855$
Less accumulated depreciation (326,651) (380,218)
1,341,822$ 1,228,637$
December 31,
(In Thousands)
The Company has vehicle supply agreements with both Chrysler and Ford Motor Company
covering vehicle purchases through the 2012 model year, and has a vehicle purchase
agreement with General Motors Company covering vehicle purchases through the 2011 model
year. See Note 15 for the amount of outstanding vehicle purchase commitments.
Prior to 2009, the Company used Chrysler as its primary vehicle supplier and has made
significant purchases and received significant payments from Chrysler. Purchases of revenue-
earning vehicles from Chrysler were $0.5 billion, $0.3 billion and $1.7 billion during 2010, 2009
and 2008, respectively.
Additionally, the Company receives promotional payments under the Chrysler vehicle supply
agreement, incentives primarily related to the disposal of revenue-earning vehicles and interest
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