Avis 2006 Annual Report Download - page 81

Table of Contents
The changes in the carrying amount of goodwill during 2006 are as follows:
Balance at
January 1,
2006
Adjustments
to Goodwill
Acquired
during
2005
Balance at
December 31,
2006
Domestic Car Rental
$
1,354
$
1
(a)
$
1,355
International Car Rental
591
4
(a)
595
Truck Rental
243
-
243
Total Company
$
2,188
$
5
$
2,193
Amortization expense relating to all intangible assets was as follows:
Based on the Company’s amortizable intangible assets as of December 31, 2006, the Company expects related amortization expense to
approximate $3 million for each of the five succeeding fiscal years.
The components of vehicles, net within assets under vehicle programs are as follows:
The components of vehicle depreciation and lease charges, net are summarized below:
During 2006, vehicle interest, net on the accompanying Consolidated Statement of Operations excludes $101 million of interest expense
related to $1,875 million of fixed and floating rate borrowings of the Company’s Avis Budget Car Rental, LLC subsidiary, the parent
company of the companies that comprise the Company’s vehicle rental operations. Such interest is recorded within interest related to
corporate debt, net on the accompanying Consolidated Statement of Operations.
F
-
24
(a)
Primarily relates to tax adjustments on the acquisition of Budget licensees.
Year Ended December 31,
2006
2005
2004
Franchise agreements
$
2
$
2
$
3
Customer lists
1
2
1
Total
$
3
$
4
$
4
7.
Vehicle Rental Activities
As of December 31,
2006
2005
Rental vehicles
$
7,738
$
8,247
Vehicles held for sale
304
165
8,042
8,412
Less: accumulated depreciation
(993
)
(903
)
$
7,049
$
7,509
Year Ended December 31,
2006
2005
2004
Depreciation expense
$
1,362
$
1,191
$
941
Lease charges
54
69
58
Gain on sales of vehicles, net
-
(22
)
(11
)
$
1,416
$
1,238
$
988