Avis 2011 Annual Report Download - page 68

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F-14
related costs incurred to effect a business combination are expensed as incurred, except for the cost to issue debt related
to the acquisition. The operating results of the acquired business are reflected in the Company’s consolidated financial
statements after the date of the acquisition.
Adoption of New Accounting Standards During 2011
In January 2010, the FASB issued ASU No. 2010-6, “Fair Value Measurements and Disclosures” (“ASU No. 2010-6”).
ASU No. 2010-6 which expands the level of fair value disclosures for financial assets and liabilities. The Company
adopted the guidance on January 1, 2010, as required, except for 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 a significant impact on its financial statements.
In December 2010, the FASB issued ASU No. 2010-28, “When to Perform Step 2 of the Goodwill Impairment Test for
Reporting Units with Zero or Negative Carrying Amounts”. For such reporting units, the guidance requires an entity to
perform Step 2 of the goodwill impairment test if it is more likely than not that a goodwill impairment exists. The
Company adopted this guidance on January 1, 2011, as required, and it did not have an impact on its financial
statements.
In December 2010, the FASB issued ASU No. 2010-29, “Disclosure of Supplementary Pro Forma Information for
Business Combinations”, which amends the disclosure requirements for supplementary pro forma information for
business combinations. The Company adopted the guidance for all acquisitions occurring during 2011, and it resulted in
incremental disclosure about the Company’s acquisition.
In September 2011, the FASB issued ASU No. 2011-09, “Disclosures about an Employer’s Participation in a
Multiemployer Plan”, which requires employers that participate in multiemployer plans to provide additional quantitative
and qualitative disclosures regarding their participation in multiemployer plans. The Company adopted this guidance on
December 31, 2011, as required, and it resulted in incremental disclosure about the Company’s participation in
multiemployer plans.
Recently Issued Accounting Pronouncements
On January 1, 2012, the Company adopted accounting pronouncements amending (i) fair value measurement and
disclosure requirements, (ii) the presentation of other comprehensive income and (iii) the rules for testing goodwill for
impairment, and they did not have a significant impact on the Company’s financial statements.
3. Earnings Per Share
The following table sets forth the computation of basic and diluted earnings per share (“EPS”):
Year Ended December 31,
2011 2010 2009
Net income (loss) for basic EPS $ (29) $ 54 $ (47)
Convertible debt interest, net of tax - 7 -
Net income (loss) for diluted EPS $ (29) $ 61 $ (47)
Basic weighted average shares outstanding 105.2 103.1 102.2
Options, warrants and non-vested stock - 2.4 -
Convertible debt - 21.2 -
Diluted weighted average shares outstanding (a) 105.2 126.7 102.2
Earnings (loss) per share:
Basic $ (0.28) $ 0.53 $ (0.46)
Diluted $ (0.28) $ 0.49 $ (0.46)
__________
(a) As the Company incurred a net loss in 2011 and 2009, 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.