Avis 2012 Annual Report Download - page 51

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44
We record net deferred tax assets to the extent we believe these assets will more likely than not be realized. In making such
determination, we consider all available positive and negative evidence, including scheduled reversals of deferred tax
liabilities, projected future taxable income, tax planning strategies and recent results of operations. In the event we were to
determine that we would be able to realize deferred income tax assets in the future in excess of their net recorded amount, we
would make an adjustment to the valuation allowance which would reduce the provision for income taxes. Currently we do
not record valuation allowances on the majority of our tax loss carryforwards as there are adequate deferred tax liabilities that
could be realized within the carryforward period.
See Notes 2 and 9 to our Consolidated Financial Statements for more information regarding income taxes.
Public Liability, Property Damage and Other Insurance Liabilities. Insurance liabilities on our Consolidated Balance Sheets
include supplemental liability insurance, personal effects protection insurance, public liability, property damage and personal
accident insurance claims for which we are self-insured. We estimate the required liability of such claims on an undiscounted
basis utilizing an actuarial method that is based upon various assumptions which include, but are not limited to, our historical
loss experience and projected loss development factors. The required liability is also subject to adjustment in the future based
upon changes in claims experience, including changes in the number of incidents and changes in the ultimate cost per
incident.
Adoption of New Accounting Pronouncements
During 2012, we adopted the following standards as a result of the issuance of new accounting pronouncements:
ASU No. 2011-08, “Testing Goodwill for Impairment”
ASU No. 2011-04, “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in
U.S. GAAP and International Financial Reporting Standards”
ASU No. 2011-05 and 2011-12, “Presentation of Comprehensive Income”
On January 1, 2013, we adopted the following standard as a result of the issuance of new accounting pronouncements:
ASU No. 2012-02, “Testing Indefinite-Lived Intangible Assets for Impairment”
For detailed information regarding these pronouncements and the impact thereof on our business, see Note 2 to our
Consolidated Financial Statements.