Avis 2009 Annual Report Download - page 83

Table of Contents
Franchising revenues, which are recorded within other revenues on the accompanying Consolidated Statements of Operations, amounted to
$30 million, $34 million and $36 million during 2009, 2008 and 2007, respectively.
The number of Company-owned and franchised outlets in operation (excluding independent commissioned dealer locations for the Budget
truck rental business and Avis and Budget locations operated by or through Avis Europe Holdings, Limited, an independent third party) is as
follows:
In connection with ongoing fees the Company receives from its franchisees pursuant to the franchise agreements, the Company is required
to provide certain services, such as training, marketing and the operation of reservation systems.
Assets acquired and liabilities assumed in business combinations are recorded on the Company’s Consolidated Balance Sheets as of the
respective acquisition dates based upon their estimated fair values at such dates. The results of operations of businesses acquired by the
Company have been included in the Company’s Consolidated Statements of Operations since their respective dates of acquisition. The
excess of the purchase price over the estimated fair values of the underlying assets acquired, including trademark assets related to
franchisees, and liabilities assumed was allocated to goodwill. In certain circumstances, the allocations of the excess purchase price are
based upon preliminary estimates and assumptions. Accordingly, the allocations may be subject to revision when the Company receives
final information, including appraisals and other analyses. Any revision to the fair values, within the allocation period, are recorded by the
Company as further adjustments to the purchase price allocations.
During 2009, the Company acquired the exclusive rights to certain Domestic Car Rental franchise territories, primarily resulting from the
settlement of certain legal claims, resulting in trademark intangible assets of $1 million.
In 2008, the Company acquired 24 vehicle rental franchisees, which included $36 million of associated vehicles, for $87 million in cash,
resulting in $50 million valued as trademark intangible assets. In 2007, the Company acquired 13 vehicle rental franchisees for $10 million
in cash, resulting in trademark intangible assets of $11 million.
These acquisitions, which for each year presented, relate primarily to the Company’s Domestic Car Rental segment, were not significant
individually or in the aggregate to the Company’s results of operations, financial position or cash flows.
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6.
Franchising Activities
As of December 31,
2009
2008
2007
Company
-
owned
Avis brand
1,272
1,334
1,335
Budget brand
1,025
1,128
1,046
Franchised
Avis brand
933
890
849
Budget brand
1,107
1,134
1,184
7.
Acquisitions