Avis 2010 Annual Report Download - page 110

Table of Contents
The Company used significant observable inputs (Level 2 inputs), other than quoted unadjusted prices from active markets (Level 1 inputs),
to determine the fair value of its derivative assets and liabilities.
Valuation Techniques . Derivatives entered into by the Company are typically executed over-the-counter and are valued using internal
valuation techniques, as no quoted market prices exist for such instruments. The valuation technique and inputs depend on the type of
derivative and the nature of the underlying exposure. The principal techniques used to value these instruments are discounted cash flows and
Black-Scholes option valuation models. These models take into account a variety of factors including, where applicable, maturity,
commodity prices, interest rate yield curves of the Company and counterparties, credit curves, counterparty creditworthiness and currency
exchange rates. These factors are applied on a consistent basis and are based upon observable inputs where available.
The following table presents information about the Company’s assets and liabilities measured at fair value on a recurring basis:
Items for which measurement is based on significant other observable inputs (Level 2):
The reportable segments presented below represent the Company’s operating segments for which separate financial information is available
and is utilized on a regular basis by its chief operating decision maker, the Company’s chief executive officer, to assess performance and to
allocate resources. In identifying its reportable segments, the Company also considers the nature of services provided by its operating
segments. Management evaluates the operating results of each of its reportable segments based upon revenue and “Adjusted EBITDA,”
which is defined as income from continuing operations before non-vehicle related depreciation and amortization, any impairment charge,
non-vehicle related interest and income taxes. The Company’s presentation of Adjusted EBITDA may not be comparable to similarly-titled
measures used by other companies.
F
-
46
As of December 31,
2010
2009
Assets
Interest rate contracts
$
1
$
-
Total
$
1
$
-
Liabilities
Interest rate swaps and foreign exchange forward contracts
$
8
$
39
Interest rate swaps and interest rate contracts under vehicle programs
7
9
Total
$
15
$
48
21.
Segment Information