Thrifty Car Rental 2010 Annual Report Download - page 86

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The Company files income tax returns in the U.S. federal and various state, local and foreign
jurisdictions. In the Company’s significant tax jurisdictions, the tax years 2007 and later are
subject to examination by federal taxing authorities and the tax years 2006 and later are subject
to examination by state and foreign taxing authorities.
The Company accrues interest and penalties on underpayment of income taxes related to
unrecognized tax benefits as a component of income tax expense in the consolidated
statement of operations. No material amounts were recognized for interest and penalties under
ASC Topic 740 during the years ended December 31, 2010, 2009 and 2008.
15. COMMITMENTS AND CONTINGENCIES
Concessions and Operating Leases
The Company has certain concession agreements principally with airports throughout the U.S.
and Canada. Typically, these agreements provide airport terminal counter space in return for a
minimum rent. In many cases, the Company’s subsidiaries are also obligated to pay insurance
and maintenance costs and additional rents generally based on revenues earned at the
location. Certain of the airport locations are operated by franchisees who are obligated to make
the required rent and concession fee payments under the terms of their franchise arrangements
with the Company’s subsidiaries.
The Company’s subsidiaries operate from various leased premises under operating leases with
terms up to 25 years. Some of the leases contain renewal options.
Expenses incurred under operating leases and concessions were as follows:
Year Ended December 31,
20102009200
(In Thousands)
Rent 47,915$ 49,543$ 51,535$
Concession expenses:
Minimum fees 102,080 101,938 94,678
Contingent fees 31,711 32,263 40,866
181,706 183,744 187,079
Less sublease rental income (574) (785) (1,078)
Total 181,132$ 182,959$ 186,001$
8
Future minimum rentals and fees under noncancelable operating leases and the Company’s
obligations for minimum airport concession fees at December 31, 2010 are presented in the
following table:
Company-Owned
Stores Operating
Concession Fees Leases Total
(In Thousands)
2011 94,645$ 42,266$ 136,911$
2012 83,958 34,604 118,562
2013 72,248 27,759 100,007
2014 52,242 21,598 73,840
2015 29,189 14,979 44,168
Thereafter 131,822 56,752 188,574
464,104 197,958 662,062
Less sublease rental income - (1,337) (1,337)
464,104$ 196,621$ 660,725$
85