CAR » Topics » Contractual Obligations

This excerpt taken from the CAR 10-Q filed May 7, 2009.

CONTRACTUAL OBLIGATIONS

Our future contractual obligations have not changed significantly from the amounts reported within our 2008 Form 10-K with the exception of our commitment to purchase vehicles, which decreased by approximately $1.7 billion from December 31, 2008 to approximately $2.8 billion at March 31, 2009. Changes to our obligations related to corporate indebtedness and debt under vehicle programs are presented above within the section titled “Liquidity and Capital Resources— Debt and Financing Arrangements” and also within Notes 11 and 12 to our Consolidated Condensed Financial Statements.

As of March 31, 2009, our liability recorded for tax obligations was $480 million. The Internal Revenue Service (“IRS”) has commenced an audit of our taxable years 2003 through 2006, the year of the Separation. We are entitled to indemnification by Realogy and Wyndham for substantially all of our recorded liabilities for open tax matters (and have received a letter of credit from Realogy to help ensure Realogy’s performance under its indemnification obligations) and therefore do not expect such resolution to have a significant impact on our earnings, financial position or cash flows. We do not anticipate our liability recorded for tax obligations to significantly change due to the settlement of audits or expirations of statue of limitations within twelve months. For additional information regarding our contractual obligations, see Note 13 to our Consolidated Condensed Financial Statements.

This excerpt taken from the CAR 10-Q filed Nov 7, 2008.

CONTRACTUAL OBLIGATIONS

Our future contractual obligations have not changed significantly from the amounts reported within our 2007 Form 10-K with the exception of our commitment to purchase vehicles, which decreased by approximately $2.2 billion from December 31, 2007 to approximately $2.7 billion at September 30, 2008. We are in the process of finalizing our purchase commitments with manufacturers for model-year 2009 vehicles. Changes to our obligations related to corporate indebtedness and debt under vehicle programs are presented above within the section titled “Liquidity and Capital Resources—Debt and Financing Arrangements” and also within Notes 14 and 15 to our Consolidated Condensed Financial Statements.

 

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As of September 30, 2008, our unrecognized tax benefits totaled $456 million. We are entitled to indemnification from Realogy and Wyndham for substantially all of such amount. A reduction in the unrecognized tax benefits may occur upon settlement with tax authorities, including the Internal Revenue Service (“IRS”). The IRS has begun to examine our taxable years 2003 through 2006. While the ultimate settlement date is uncertain, we believe it is reasonably possible that examination for the taxable years 2003 through 2006 will conclude in 2010.

This excerpt taken from the CAR 10-Q filed Aug 7, 2008.

CONTRACTUAL OBLIGATIONS

Our future contractual obligations have not changed significantly from the amounts reported within our 2007 Form 10-K with the exception of our commitment to purchase vehicles, which decreased by approximately $3.9 billion from December 31, 2007 to approximately $1.0 billion at June 30, 2008. We are currently negotiating our purchase commitments with manufacturers for model-year 2009 vehicles. Changes to our obligations related to corporate indebtedness and debt under vehicle programs are presented above within the section titled “Liquidity and Capital Resources— Debt and Financing Arrangements” and also within Notes 13 and 14 to our Consolidated Condensed Financial Statements.

As of June 30, 2008, our unrecognized tax benefits totaled $422 million. We are entitled to indemnification from Realogy and Wyndham for substantially all of such amount. A reduction in the unrecognized tax benefits may occur upon settlement with tax authorities, including the Internal Revenue Service (“IRS”). The IRS has begun to examine our taxable years 2003 through 2006. While the ultimate settlement date is uncertain, we believe it is reasonably possible that examination for the taxable years 2003 through 2006 will conclude in 2010.

 

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This excerpt taken from the CAR 10-Q filed May 7, 2008.

CONTRACTUAL OBLIGATIONS

Our future contractual obligations have not changed significantly from the amounts reported within our 2007 Form 10-K with the exception of our commitment to purchase vehicles, which decreased by approximately $2.6 billion from December 31, 2007 to approximately $2.3 billion at March 31, 2008. Any changes to our obligations related to corporate indebtedness and debt under vehicle programs are presented above within the section titled “Liquidity and Capital Resources— Debt and Financing Arrangements” and also within Notes 13 and 14 to our Consolidated Condensed Financial Statements.

As of March 31, 2008, our unrecognized tax benefits totaled $423 million substantially all of which are entitled to indemnification by Realogy and Wyndham. A reduction in the unrecognized tax benefits may occur upon settlement with tax authorities, including the Internal Revenue Service (“IRS”). The IRS has begun to examine our taxable years 2003 through 2006. While the ultimate settlement date is uncertain, we believe it is reasonably possible that examination for the taxable years 2003 through 2006 will conclude in 2010.

This excerpt taken from the CAR 10-Q filed Nov 8, 2007.

CONTRACTUAL OBLIGATIONS

Our future contractual obligations have not changed significantly from the amounts reported within our 2006 Annual Report on Form 10-K filed on March 1, 2007, with the exception of our commitment to purchase vehicles, which decreased by approximately $2 billion from the amount previously disclosed to approximately $6 billion at September 30, 2007. Any changes to our obligations related to corporate indebtedness and debt under vehicle programs are presented above within the section entitled “Liquidity and Capital Resources – Debt and Financing Arrangements” and also within Notes 11 and 12 to our Consolidated Condensed Financial Statements.

As of September 30, 2007, our unrecognized tax benefits totaled $442 million including the impact of the adoption of FIN 48. A reduction in the unrecognized tax benefits may occur upon settlement with tax authorities, including the IRS. The IRS is examining our taxable years 2003 through 2006. While the ultimate settlement date is uncertain, we believe it is reasonably possible that examination for the taxable years 2003 through 2006 will conclude in 2010.

This excerpt taken from the CAR 10-Q filed Aug 8, 2007.

CONTRACTUAL OBLIGATIONS

Our future contractual obligations have not changed significantly from the amounts reported within our 2006 Annual Report on Form 10-K filed on March 1, 2007, with the exception of our commitment to purchase vehicles, which decreased by approximately $1 billion from the amount previously disclosed to approximately $7.1 billion at June 30, 2007. Any changes to our obligations related to corporate indebtedness and debt under vehicle programs are presented above within the section entitled “Liquidity and Capital Resources – Debt and Financing Arrangements” and also within Notes 10 and 11 to our Consolidated Condensed Financial Statements.

As of June 30, 2007, our unrecognized tax benefits totaled $558 million including the impact of the adoption of FIN 48. A reduction in the unrecognized tax benefits may occur upon settlement with tax authorities, including the IRS. The IRS has begun to examine our taxable years 2003 through 2006. While the ultimate settlement date is uncertain, we believe it is reasonably possible that examination for the taxable years 2003 through 2006 will conclude in 2010.

This excerpt taken from the CAR 10-Q filed May 10, 2007.

CONTRACTUAL OBLIGATIONS

Our future contractual obligations have not changed significantly from the amounts reported within our 2006 Annual Report on Form 10-K filed on March 1, 2007, with the exception of our commitment to purchase vehicles, which decreased by approximately $2.6 billion from the amount previously disclosed to approximately $5.4 billion at March 31, 2007 and our adoption of FIN 48 as of January 1, 2007. Any changes to our obligations related to corporate indebtedness and debt under vehicle programs are presented above within the section entitled “Liquidity and Capital Resources— Debt and Financing Arrangements” and also within Notes 11 and 12 to our Consolidated Condensed Financial Statements.

As of March 31, 2007, our unrecognized tax benefits totaled $559 million including the impact of the adoption of FIN 48. A reduction in the unrecognized tax benefits may occur upon settlement with tax authorities, including the IRS. The IRS has begun to examine our taxable years 2003 through 2006. While the ultimate settlement date is uncertain, we believe it is reasonably possible that examination for the taxable years 2003 through 2006 will conclude in 2010.

This excerpt taken from the CAR 10-K filed Mar 1, 2007.

CONTRACTUAL OBLIGATIONS

The following table summarizes our future contractual obligations as of December 31, 2006:

 

    2007   2008   2009   2010   2011   Thereafter   Total

Long-term debt, including current portion (a)

  $ 29   $ 9   $ 9   $ 9   $ 9   $ 1,777   $ 1,842

Asset-backed debt under programs (b)

    891     1,850     590     1,036     600     303     5,270

Operating leases

    393     302     208     147     102     635     1,787

Commitments to purchase vehicles (c)

    4,736     3,244     -     -     -     -     7,980

Other purchase commitments (d)

    31     -     -     -     -     -     31
                                         
  $ 6,080   $ 5,405   $ 807   $ 1,192   $ 711   $ 2,715   $ 16,910
                                         

(a)

Consists primarily of borrowings of Avis Budget Car Rental including $1,000 million of fixed and floating rate senior notes and $838 million outstanding under a secured floating rate term loan.

 

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(b)

Represents debt under vehicle programs (including related party debt due to Avis Budget Rental Car Funding), which was issued to support the purchase of vehicles.

(c)

Primarily represents commitments to purchase vehicles from either General Motors Corporation or Ford Motor Company. These commitments are subject to the vehicle manufacturers’ satisfying their obligations under the repurchase and guaranteed depreciation agreements. The purchase of such vehicles is financed through the issuance of debt under vehicle programs in addition to cash received upon the sale of vehicles primarily under repurchase and guaranteed depreciation agreements (see Note 15 to our Consolidated Financial Statements).

(d)

Primarily represents commitments under service contracts for information technology and telecommunications.

The above table does not include future cash payments related to interest expense or any potential amount of future payments that we may be required to make under standard guarantees and indemnifications that we have entered into in the ordinary course of business. For more information regarding guarantees and indemnifications, see Note 16 to our Consolidated Financial Statements.

This excerpt taken from the CAR 10-Q filed May 5, 2005.
Contractual Obligations
Our future contractual obligations have not changed significantly from the amounts reported within our 2004 Annual Report on Form 10-K with the exception of our commitment to purchase vehicles, which decreased from the amount previously disclosed by approximately $2.2 billion to approximately $3.4 billion at March 31, 2005 as a result of purchases during first quarter 2005. Any changes to our obligations related to corporate indebtedness and debt under management programs are presented above within the section entitled “Liquidity and Capital Resources—Financial Obligations” and also within Notes 11 and 12 to our Consolidated Condensed Financial Statements.
This excerpt taken from the CAR 10-K filed Mar 1, 2005.
Contractual Obligations

The following table summarizes our future contractual obligations as of December 31, 2004 on a pro forma basis after giving effect to the completion of the spin-off of PHH and the initial public offering of Wright Express:

                                                         
    2005     2006     2007     2008     2009     Thereafter     Total  
Long-term debt (a)
  $ 739     $ 1,001     $ 5     $ 796     $ 1     $ 1,783     $ 4,325  
Asset-backed debt under programs (b)
    3,144       1,797       1,944       1,055       444       467       8,851  
Operating leases
    491       407       334       239       157       731       2,359  
Commitments to purchase vehicles (c)
    5,586       -       -       -       -       -       5,586  
Other purchase commitments (d)
    655       331       286       209       170       290       1,941  
 
                                         
 
  $ 10,615     $ 3,536     $ 2,569     $ 2,299     $ 772     $ 3,271     $ 23,062  
 
                                         

(a)  
Represents long-term debt (which includes current portion).
(b)  
Represents debt under management and mortgage programs (including related party debt due to Cendant Rental Car Funding (AESOP) LLC), which was issued to support the purchase of assets under management and mortgage programs. These amounts represent the contractual maturities for such debt, except for notes issued under our vehicle management and timeshare programs, where the underlying indentures require payments based on cash inflows relating to the corresponding assets under management and mortgage programs and for which estimates of repayments have been used.
(c)  
Represents commitments to purchase vehicles from either General Motors Corporation or Ford Motor Company. The purchase of such vehicles are financed through the issuance of debt under management and mortgage programs in addition to cash received upon the sale of vehicles primarily under repurchase programs (see Note 16 to our Consolidated Financial Statements).
(d)  
Primarily represents commitments under service contracts for information technology and telecommunications.

The above table does not include future cash payments related to interest expense.

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