Thrifty Car Rental 2009 Annual Report Download - page 80

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15. COMMITMENTS AND CONTINGENCIES
Concessions and Operating Leases
The Company has certain concession agreements principally with airports throughout the U.S. and
Canada. Typically, these agreements provide airport terminal counter space in return for a minimum
rent. In many cases, the Company’s subsidiaries are also obligated to pay insurance and
maintenance costs and additional rents generally based on revenues earned at the location. Certain
of the airport locations are operated by franchisees who are obligated to make the required rent and
concession fee payments under the terms of their franchise arrangements with the Company’s
subsidiaries.
The Company’s subsidiaries operate from various leased premises under operating leases with
terms up to 25 years. Some of the leases contain renewal options.
Expenses incurred under operating leases and concessions were as follows:
Year Ended December 31,
2009 2008 2007
(In Thousands)
Rent 49,543$ 51,535$ 49,270$
Concession expenses:
Minimum fees 101,938 94,678 87,416
Contingent fees 32,263 40,866 49,493
183,744 187,079 186,179
Less sublease rental income (785) (1,078) (1,011)
Total 182,959$ 186,001$ 185,168$
Future minimum rentals and fees under noncancelable operating leases and the Company’s
obligations for minimum airport concession fees at December 31, 2009 are presented in the
following table:
Company-Owned
Stores Operating
Concession Fees Leases Total
(In Thousands)
2010 76,363$ 41,477$ 117,840$
2011 65,104 33,960 99,064
2012 57,616 26,929 84,545
2013 49,422 20,886 70,308
2014 31,015 13,884 44,899
Thereafter 104,216 56,722 160,938
383,736 193,858 577,594
Less sublease rental income - (623) (623)
383,736$ 193,235$ 576,971$
Vehicle Insurance Reserves
The Company is self insured for a portion of vehicle insurance claims. In 2007, the Company
retained the risk of loss up to $4.0 million per occurrence for public liability and property damage
claims, including third-party bodily injury and property damage, plus a self-insured corridor of $1.0
million per occurrence for losses in excess of $4.0 million with an aggregate limit of $7.0 million for
losses within this corridor. In February 2008, the Company increased its retained risk of loss up to
$5.0 million per occurrence and in February 2009, the Company further increased its retained risk of
79