Avis 2006 Annual Report Download - page 86

Table of Contents
the recorded assets and liabilities are reasonable, tax regulations are subject to interpretation and tax litigation is inherently uncertain;
therefore, the Company’s assessments can involve both a series of complex judgments about future events and rely heavily on estimates
and assumptions. While the Company believes that the estimates and assumptions supporting the assessments are reasonable, the final
determination of tax audits and any other related litigation could be materially different than that which is reflected in historical income tax
provisions and recorded assets and liabilities.
The results of an audit or litigation related to these matters include a range of potential outcomes, which may involve material amounts.
However, as discussed above, the Company has been indemnified for these matters by Realogy and Wyndham and therefore, does not
expect such resolution to have a significant impact on its earnings, financial position or cash flows.
Other current assets consisted of:
11. Other Current Assets
As of December 31,
2006
2005
Receivables from Realogy
(a)
$
572
$
-
Receivables from Wyndham
(a)
393
-
Prepaid expenses
144
172
Other
155
62
$
1,264
$
234
Property and equipment, net consisted of:
Depreciation and amortization expense relating to property and equipment during 2006, 2005 and 2004 was $102 million, $112 million and
$111 million, respectively (including $36 million, $36 million and $27 million, respectively, of amortization expense relating to capitalized
computer software).
F
-
29
(a)
Represents amounts due for services performed under the Transition Services Agreement and for certain contingent, income tax and
other corporate liabilities assumed by Realogy and Wyndham in connection with the separation. These amounts are due from
Realogy and Wyndham on demand upon the Company’s settlement of the related liability. At December 31, 2006, there are
corresponding liabilities recorded within accounts payable and other current liabilities (see Note 13—Accounts Payable and Other
Current Liabilities).
12.
Property and Equipment, net
As of December 31,
2006
2005
Land
$
50
$
50
Buildings and leasehold improvements
337
286
Capitalized software
238
272
Furniture, fixtures and equipment
138
105
Buses and support vehicles
68
74
Projects in process
89
109
920
896
Less: Accumulated depreciation and amortization
(434
)
(380
)
$
486
$
516