Thrifty Car Rental 2011 Annual Report Download - page 66

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included only if the assumed tax benefit would decrease the Company’s current taxes payable.
Since the Company is not a taxpayer for federal income tax purposes in 2011, it does not
benefit from the tax deduction related to the assumed option exercises for purposes of the
diluted share calculation as it did in 2010, thus resulting in an increase in the dilutive EPS
denominator of approximately 700,000 shares. When the Company becomes a taxpayer in the
future, the tax benefit will be incorporated into the diluted share calculation and the shares
included in the diluted EPS calculation will be reduced by the shares repurchased from the
assumed proceeds; however, other factors, such as the Company’s stock price, could impact
the diluted EPS calculation. See Note 13 for further discussion of share repurchase program.
3. RECEIVABLES
Receivables consist of the following:
2011 2010
Trade accounts receivable and other 74,403$ 68,528$
Vehicle manufacturer receivables 21,510 4,543
Car sales receivable 2,287 1,100
98,200 74,171
Less: Allowance for doubtful accounts (2,840) (4,715)
95,360$ 69,456$
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.
Car sales receivable include primarily amounts due from car sale auctions for the sale of both
Program Vehicles 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.
4. REVENUE–EARNING VEHICLES
Revenue-earning vehicles consist of the following:
2011 2010
Revenue-earning vehicles 1,858,766$ 1,668,473$
Less: Accumulated depreciation (390,931) (326,651)
1,467,835$ 1,341,822$
December 31,
(In Thousands)
The Company has multi-year vehicle supply agreements with both Chrysler and Ford Motor
Company covering vehicle purchases through the 2012 and 2013 model years, respectively,