Avis 2008 Annual Report Download - page 95

Property and equipment, net consisted of:
Depreciation and amortization expense relating to property and equipment during 2008, 2007 and 2006 was $85 million, $81 million and
$102 million, respectively (including $26 million, $21 million and $36 million, respectively, of amortization expense relating to capitalized
computer software).
At December 31, 2008, the Company’s equity-method investee and the Company’s approximate ownership interest, based on outstanding
shares, are as follows:
The Company acquired its investment in Carey Holdings, Inc. (“Carey”) on October 23, 2007 for approximately $60 million in cash.
Carey’s subsidiary, Carey International, Inc., is a worldwide provider of chauffeured ground transportation services, operating in
approximately 550 cities and 60 countries through a network of franchisees and alliance partners. The Company’s investment in Carey is
recorded within other non-current assets on the Consolidated Balance Sheet and the Company’s share of Carey’s operating results is
reported within operating expenses on the Consolidated Statements of Operations. During 2008, the Company recorded an $18 million
charge ($11 million, net of tax) for an impairment to its investment in Carey to reflect the decline of the investment’s fair value below its
carrying value. The impairment relates to the Company’s common equity investment in Carey and its option to acquire an additional
ownership stake in Carey, which was not exercised. At December 31, 2008, the Company’s investment totaled $43 million, including $2
million of deferred acquisition costs. The Company’s share of Carey’s operating results were insignificant in 2008 and were a net loss of $2
million from October 23, 2007 to December 31, 2007.
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12.
Property and Equipment, net
As of December 31,
2008
2007
Land
$
48
$
48
Buildings and leasehold improvements
368
365
Capitalized software
307
255
Furniture, fixtures and equipment
139
135
Buses and support vehicles
53
59
Projects in process
74
93
989
955
Less: Accumulated depreciation and amortization
(504
)
(455
)
$
485
$
500
13.
Equity Investment
Company
Percentage
Ownership
Carey Holdings, Inc.
47.9
%