Avis 2010 Annual Report Download - page 79

Table of Contents
amendments to FASB Interpretation No. 46(R) made by Statement of Financial Accounting Standards (“SFAS”) No. 167 to require that a
comprehensive qualitative analysis be performed to determine whether a holder of variable interests in a variable interest entity also has a
controlling financial interest in that entity. In addition, the amendments require that the same type of analysis be applied to entities that were
previously designated as qualifying special-purpose entities. This guidance applies prospectively for fiscal years beginning on or after
November 15, 2009. The Company adopted this guidance on January 1, 2010, as required, and it did not have a significant impact on its
financial statements.
In January 2010, the FASB issued ASU No. 2010-6, “Fair Value Measurements and Disclosures” (“ASU No. 2010-6”). ASU No. 2010-6
will expand the level of fair value disclosures by an entity, requiring information to be provided about movements of assets between levels 1
and 2, a reconciliation of purchases, sales, issuance and settlements for all level 3 instruments and fair value measurement disclosures for
each class of assets and liabilities. The Company adopted the guidance on January 1, 2010, as required, except for the disclosures about
purchases, sales, issuances and settlements for level 3 instruments and fair value measurements, which were adopted on January 1, 2011, as
required, and it did not have, and is not expected to have, a significant impact on its financial statements.
In February 2010, the FASB issued ASU No. 2010-09, “Subsequent Events – Amendments to Certain Recognition and Disclosure
Requirements”. The Company adopted this guidance upon its issuance, as required, and it did not have a significant impact on its financial
statements.
Recently Issued Accounting Pronouncements
The provisions of the following new accounting pronouncements were adopted on January 1, 2011 and did not have a significant impact on
our financial statements:
The following table sets forth the computation of basic and diluted earnings per share (“EPS”):
F
-
15
(i)
An amendment to the procedure for performing step 1 of the goodwill impairment test.
(ii)
An amendment to the disclosure requirements for supplementary pro forma information for business combinations.
3.
Earnings Per Share
Year Ended December 31,
2010
2009
2008
Net income (loss) for basic EPS
$
54
$
(47
)
$
(1,124
)
Convertible debt interest, net of tax
7
-
-
Net income (loss) for diluted EPS
$
61
$
(47
)
$
(1,124
)
Basic weighted average shares outstanding
103.1
102.2
101.9
Options, warrants and non
-
vested stock
2.4
-
-
Convertible debt
21.2
-
-
Diluted weighted average shares outstanding
126.7
102.2
101.9
Earnings (loss) per share:
Basic
$
0.53
$
(0.46
)
$
(11.04
)
Diluted
$
0.49
$
(0.46
)
$
(11.04
)
As the Company incurred a net loss in 2009 and 2008, all outstanding stock options, restricted stock units, stock warrants and issuable
shares underlying the convertible notes issued in 2009, have an anti-dilutive effect and therefore are excluded from the computation of
diluted weighted average shares outstanding. Accordingly, basic and diluted weighted average shares outstanding are equal for such
periods.
(a)
(a
)