Avis 2008 Annual Report Download - page 91

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 2008, 2007 and 2006, vehicle interest, net on the accompanying Consolidated Statements of Operations excludes $136 million, $141
million and $101 million, respectively, of interest expense related to the fixed and floating rate borrowings of the Company’s Avis Budget
Car Rental, LLC (“Avis Budget Car Rental”) subsidiary. Such interest is recorded within interest expense related to corporate debt, net on
the accompanying Consolidated Statements of Operations.
The income tax provision (benefit) consists of the following:
Pretax income (loss) for domestic and foreign operations consists of the following:
F
-
28
9.
Vehicle Rental Activities
Year Ended December 31,
2008
2007
Rental vehicles
$
7,502
$
7,947
Less: Accumulated depreciation
(1,219
)
(1,022
)
6,283
6,925
Vehicles held for sale
881
549
Vehicles, net
$
7,164
$
7,474
Year Ended December 31,
2008
2007
2006
Depreciation expense
$
1,639
$
1,565
$
1,362
Lease charges
51
46
54
(Gain) loss on sale of vehicles, net and cost of vehicle disposition
7
(40
)
-
Vehicle depreciation and lease charges, net
$
1,697
$
1,571
$
1,416
10.
Income Taxes
Year Ended December 31,
2008
2007
2006
Current
Federal
$
(4
)
$
1
$
(47
)
State
10
2
21
Foreign
16
9
—
Current income tax provision (benefit)
22
12
(26
)
Deferred
Federal
(232
)
(120
)
(250
)
State
(14
)
46
21
Foreign
5
17
29
Deferred income tax benefit
(241
)
(57
)
(200
)
Benefit from income taxes
$
(219
)
$
(45
)
$
(226
)
Year Ended December 31,
2008
2007
2006
Domestic
$
(1,404
)
$
(1,064
)
$
(756
)
Foreign
61
72
79
Pretax loss
$
(1,343
)
$
(992
)
$
(677
)