Avis 2006 Annual Report Download - page 83

Table of Contents
Total restructuring charges are recorded as follows:
2005 Restructuring
During first quarter 2005, the Company recorded $26 million of restructuring charges as a result of activities undertaken following the
PHH spin-off and the initial public offering of Wright Express. The restructuring activities were targeted principally at reducing costs,
enhancing organizational efficiency and consolidating and rationalizing existing processes and facilities. The more significant areas of cost
reduction included the closure of a call center and field locations of the Company’s Truck Rental business and reductions in staff within
the Company’s corporate functions. The initial charge recorded in the Company’s Corporate and Other, Truck Rental and Domestic Car
Rental segments amounted to $19 million, $5 million and $2 million, respectively. During fourth quarter 2006, the Company recorded a $2
million charge representing a revision to its original estimate of costs to exit a lease in connection with the closure of a truck rental facility
in first quarter 2005. The remaining liability relating to these actions was $3 million at December 31, 2006 and primarily relates to
obligations under terminated leases.
The benefit from income taxes consists of the following:
Pretax income (loss) for domestic and foreign operations consists of the following:
F
-
26
Costs
Incurred
Cash
Payments
Liability
as of
December 31,
2006
Truck Rental
$
6
$
(1
)
$
5
Domestic Car Rental
2
-
2
$
8
$
(1
)
$
7
10.
Income Taxes
Year Ended December 31,
2006
2005
2004
Current
Federal
$
(47
)
$
79
$
141
State
21
15
(8
)
Foreign
-
25
27
(26
)
119
160
Deferred
Federal
(250
)
(149
)
(246
)
State
21
(34
)
23
Foreign
29
13
(1
)
(200
)
(170
)
(224
)
Benefit from income taxes
$
(226
)
$
(51
)
$
(64
)
Year Ended December 31,
2006
2005
2004
Domestic
$
(756
)
$
(135
)
$
(64
)
Foreign
79
73
71
Pretax income (loss)
$
(677
)
$
(62
)
$
7