Avis 2009 Annual Report Download - page 90

Table of Contents
Other non-current assets consisted of:
At December 31, 2009, 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 has been
reported within operating expenses on the Consolidated Statements of Operations. As of November 2009, Carey received a notice of default
related to its primary debt agreements and entered into discussions with its lenders to restructure the terms of these agreements. On
November 30, 2009, the Company recorded a $32 million charge ($19 million, net of tax) for impairment of its investment in Carey, to
reflect the other-than-temporary decline of the investment’s fair value below its carrying value, based on cash flow estimates. This
impairment charge reduced the carrying value of the Company’s investment in Carey to zero. In 2009, the Company’s share of Carey’s
operating results was a net loss of $11 million.
In 2008, the Company recorded an $18 million charge ($11 million, net of tax), for impairment of its investment in Carey to reflect the
other-than-temporary decline of the investment’s fair value below its carrying value. The impairment relates to the Company’s common
equity investment in Carey and included 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. 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.
F
-
28
13.
Other Non
-
Current Assets
As of December 31,
2009
2008
Receivables from Realogy
$
96
$
435
Receivables from Wyndham
60
261
Deferred financing costs
73
80
Other
19
113
$
248
$
889
Represents amounts due for certain contingent, tax and other corporate liabilities assumed by Realogy and Wyndham in connection
with the Cendant Separation. These amounts are due from Realogy and Wyndham on demand upon the Company’s settlement of the
related liability. At December 31, 2009 and 2008, there are corresponding liabilities recorded within other non-current liabilities.
During 2009, $573 million of receivables from Realogy and Wyndham, and a corresponding amount of liabilities, were reclassified
from non-current to current, primarily related to tax matters. Realogy has posted a letter of credit for the benefit of the Company to
cover Realogy’s performance in respect of these receivables, as more fully described under Note—19 Commitments and
Contingencies.
14.
Equity Investment
Company
Percentage
Ownership
Carey Holdings, Inc.
47.9
%
(a)
(a)
(a)