Dollar Rent A Car 2007 Annual Report Download - page 65

Download and view the complete annual report

Please find page 65 of the 2007 Dollar Rent A Car annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 114

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114

5. RECEIVABLES
Receivables consist of the following:
2007 2006
Trade accounts receivable 109,833$ 114,492$
Due from Chrysler 95,023 95,223
Car sales receivable 22,125 19,384
Other vehicle manufacturer receivables 15,809 7,781
Fair value of interest rate swap 1,078 14,271
Notes receivable 250 1,159
244,118 252,310
Less allowance for doubtful accounts (5,991) (9,961)
238,127$ 242,349$
December 31,
(In Thousands)
Trade accounts and notes receivable include primarily amounts due from rental customers,
franchisees and tour operators arising from billings under standard credit terms for services provided
in the normal course of business. Notes receivable are generally issued to certain franchisees at
current market interest rates with varying maturities and are generally guaranteed by franchisees.
Due from Chrysler is comprised primarily of amounts due under various guaranteed residual,
buyback, incentive and promotion programs, which are paid according to contract terms and are
generally received within 60 days.
Car sales receivable include primarily amounts due from car sale auctions for the sale of both
Program and Non-Program Vehicles.
Other vehicle manufacturer receivables include primarily amounts due under guaranteed
residual, buyback and incentive programs, which are paid according to contract terms and are
generally received within 60 days.
Fair value of interest rate swap represents the fair market value on interest rate swap agreements
(Note 11).
6. REVENUE–EARNING VEHICLES
Revenue-earning vehicles consist of the following:
2007 2006
Revenue-earning vehicles 3,085,649$ 2,834,060$
Less accumulated depreciation (277,295) (210,341)
2,808,354$ 2,623,719$
December 31,
(In Thousands)
Dollar and Thrifty entered into U.S. vehicle supply agreements (the “VSA”) with Chrysler, which
commenced with the 1997 model year. The VSA provides that the Company will purchase at least
75% of its vehicles from Chrysler until a certain minimum level is reached, of which 80% will be
Program Vehicles and 20% will be Non-Program. In September 2006, the VSA was amended to
enable the Company to acquire vehicles through the 2011 model year. Under the terms of the VSA,
57