Good morning and welcome to Ryder Systems Inc. Fourth Quarter 2010 Earnings Release Conference Call. All lines are in a listen-only mode until after the presentation. As a remainder, if you are using a headset or a speaker phone, please pick up your handset before asking your question. Today’s call is being recorded. If you have any objections, please disconnect at this time. I would like to introduce Bob Brunn, Vice President of Investor Relations and Public Affairs for Ryder. Mr. Brunn, you may begin.

Thanks very much. Good morning and welcome to Ryder’s Fourth Quarter 2010 Earnings and 2011 Forecast Conference Call. I’d like to begin with a reminder that in this presentation, you will hear some forward looking statements within the meaning of Private Securities Litigation Reform Act of 1995. These statements are based on management’s preferred expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from these expectations due to changes in economic, business, competitive, market, political and regulatory factors. For detailed information about these factors is contained in this morning’s earnings and in Ryder’s filings with the Securities and Exchange Commission. Presenting on today’s call are Greg Swienton, Chairman and Chief Executive Officer and Art Garcia, Executive President and Chief Financial Officer. Additionally, Robert Sanchez, President of global fleet management solutions and John Williford, President of global supply chain solutions are on the call today and available for questions following the presentation. With that, let me turn it over to Greg.

Thank you Bob and good morning everyone. This morning we’ll recap our fourth quarter 2010 results, review our asset management area and discuss our outlook and forecast for 2011. And after our additional remarks we’ll open the call for questions. So, let me get into an overview of our fourth quarter results beginning on page four for those of you following on the power point. Net earnings per diluted share from continuing operations were $0.80 for the fourth quarter 2010, up from $0.43 for the prior year period. Both periods included income tax benefits partially offset by restructuring and other items. Excluding these, comparable EPS was $0.65 in the fourth quarter 2010, up from $0.41 in the prior year. Fourth quarter EPS was also above our forecast range of $0.58 to $0.63. Total revenue was up by 5% from the prior year reflecting a 4% increase in operating revenue and higher fuel services revenue. Operating revenue which excludes FMS fuel and all subcontracted transportation revenue increased due to higher commercial rental and supply chain solutions revenue partially offset by lower full service lease revenue. On page 5, in fleet management total revenue increased 5% versus the prior year. Total FMS revenue includes a 10% increase in fuel services revenue reflecting higher fuel cost pass throughs. FMS operating revenue which excludes fuel increased by 4% due to higher commercial rental revenue. Contractual revenue which includes both full service lease and contract maintenance was down 2% due to fewer contracted units in the fleet as compared to the prior year. Commercial rental revenue was up by 31%. Rental revenue benefited from improving global demand, higher pricing and an increase in the fleet size. Net before tax earnings in fleet management are up by 55%, fleets management earnings as a percent of operating…

Thanks, Greg. Turning to page 11, full-year gross capital expenditures totaled almost $1.1 billion, which is up $476 million from the prior year and in line with our initial forecast. Full-year spending on leased vehicles increased $99 million from the prior year, reflecting improvements in both new lease sales and lease renewals as well as higher per vehicle investment costs. Capital spending on commercial rental vehicles was $379 million, due to refreshment and growth of the rental fleet. This was an increase of $371 million over the prior year, since in 2009 we spent very little capital on rental vehicles due to the weak economy. We realized proceeds primarily from sales of revenue earning equipment, of $235 million. That’s up $19 million from the prior year. The increase reflects higher used vehicle pricing, partially offset by fewer units sold. Including proceeds from sales, full-year net capital expenditures increased by $457 million to $853 million. We also spent $212 million on acquisitions, primarily for the purchase of total logistic control on December 31. As additional information on this deal, we paid 8 to 9 times EBITDA for TLC. So, we’re very comfortable with the price paid for this strategic and accretive acquisition. Turning to the next page, we generated full-year cash from operating activities of about $1 billion that’s up $43 million from the prior year. Depreciation decreased to $47 million in 2010 due to a smaller fleet, as well as lower adjustments in the carrying values of used vehicles. These items more than offset higher depreciation cost per vehicle, resulting from higher average vehicle investments, lower residual values and accelerated depreciation rates on certain vehicles. Including the impact of used vehicle sales, we generated over $1.3 billion of total cash for the year, that's up $62 million from the prior…

Thanks Art. On page 15 we summarize key results for our asset management area globally. At the end of the quarter, our global used vehicle inventory for sale was 5200 vehicles, down by 1700 units from the fourth quarter 2009. The used vehicle inventory is up 500 units sequentially from the end of the third quarter 2010 but still below our target level. We sold 4000 vehicles during the quarter, 23% fewer than the prior year due to our smaller inventory available for sale. We saw continued strength in used vehicle demand and pricing in the fourth quarter. Improved demand is the result of both relatively better market conditions and the desire of some truck buyers to obtain pre 2010 engines. Stronger demand combined with less available inventory in the market has allowed us to up price generally and to increase the proportion of retail sales where we realize better prices. Compared to the fourth quarter 2009 proceeds per vehicle were up 39% on tractors and 56% up on trucks. From a sequential standpoint, tractor pricing was up 13% and truck pricing up 4% versus the third quarter 2010. At the end of the quarter approximately 7200 vehicles were classified as no longer earning revenue. And this was down by 2600 units or 27% from the prior year and the decrease reflects fewer units held for sale and an improvement in rental utilization. We've continued to successfully implement our strategy to increase the number of lease contracts on existing vehicles that are extended beyond their original lease term. The number of these lease extensions in the US for the full year was up by approximately 1500 units or 20% versus the prior year. Increasing lease extensions is a beneficial strategy in the current market environment, as it retains the revenue…

Okay turning to page 22, we’re forecasting gross capital spending in a range of $1.7 to $1.8 billion that’s up approximately $600 million to $725 million from 2010. Lease capital is projected to increase by $350 to $475 million approximately $70 million of this increase is a result of higher purchase cost for vehicle. Of course we expect to earn an appropriate return on this upfront capital investment over the contracted lease term. The remainder of the increase largely stems from a higher than normal replacement cycle and improving retention rates on expiring leases this year. Since this capital spending is spread throughout the year a significant portion of this increased investment will benefit revenue and earnings primarily in 2012. We plan to spend $575 million on commercial rental vehicles. As a reminder in 2009, we spent virtually no capital on rental trucks. So part of the higher rental capital in 2010 & 2011 is making up for differed fleet replacement. Of the total spend we plan to invest approximately $200 million to grow the rental fleet by 10% this year. Lastly the higher cost of new engine technology will require an additional $50 million for rental and again we expect to realize an appropriate return on this capital cost increase over the life of the trucks. As always please note that the split of capital between lease and rental could be revised during the year, based upon movement of trucks between product lines. Proceeds from sales of primary revenue earning equipment are forecast to improve by $45 million to $280 million reflecting higher prices and an increase in the number of used vehicles sold. As a result net capital expenditures are forecast at roughly $1.4 to $1.5 billion that’s up approximately $560 to $680 million from the prior year. Free cash flow is forecast at negative $240 to $290 million due to higher capital expenditures. This reflects the vehicle replacement cycle and our upfront investment in a greater number of vehicles purchased as well as higher investment cost per vehicle, which again should lead to revenue and earnigs improvement in future years. Based on these projections total obligations to equity are forecast at 202% to 212 % including the recently completed acquisitions of Scully and Carmenito. This forecast leverage is flat to up from 203% at the prior year end and well below our target leverage of 250% to 300%. As we have communicated before at this leverage we have capacity to support additional organic growth, acquisitions and or share repurchases over time. At this time let me turn the call back over to Greg to review our EPSfore cast.

Going on to page 23 as I previously outlined in the waterfall chart, our full year 2011 EPS forecast is for a range of $280 to $290 up $0.58 top $0.68 from a comparable $222 in the prior year. We’re also providing a first quarter EPS forecast of $0.40 to $0.44 per share vs. comparable prior year EPS of $0.24. This represents first quarter EPS growth of $0.16 to $0.20 or 67% to 83% improvement. Turning to page 24 in closing let me briefly summarize the key points in our 2011 plan. We’re working to manage through the cumulative impacts of the prolonged freight recession on our leased business which has resulted in the ageing of our leased fleet. We expect improved new sales and renewal levels as the economy modestly improves and as we execute on our sales and marketing initiatives. Over time, we expect lease sales to benefit from pent up demand for private fleet replacement and growth, more expensive and complex engine technology and more limited credit availability from private fleets. We expect continuing significant benefits from improved demand in our commercial, rental and used vehicle businesses. We manage these assets very well during the recession and anticipate leveraging their return to more normalized level this year. We expect much stronger growth rates in supply chain and dedicated due to improved organic sales, acquisitions and improving volumes. We are very focused on implementing cost management and productivity initiatives to address cost pressures, especially due to higher maintenance and driver related expenses. And finally, we’re making both capital investments in vehicles and P&L investments in strategic initiatives which we expect to propel additional revenue and earnings growth in future years. That does conclude our prepared remarks this morning and we will move on to questions and answers. Due to the expected number of callers to queue up. I will ask that you limit yourself to 2 questions each. If you have additional questions, you are welcome to get back in the queue and we will take as many calls as we can. So, at this time I will turn it over to the operator to open up the line for questions.

Thank you. [Operator Instructions] Our first question today is from John Barnes with RBC Capital Market. Your line is now open.

Thank you. Good morning guys. A couple of cold corners here. Could you talk a little bit about what percentage of your leases, your lease business is up for renewal in 2011 and 2012 and is it more than you would normally see?

Yeah, they will be up more because of the heavy sales in 2005 and 2006 and I will ask Robert Sanchez to give you more precise answers.

Yes. As we always say, on any given year, there is 15% to 20% of the fleet that’s up for renewal. What we’re expecting in 2011 and 2012 is on the high end of that. So, to be about 20% in 2011 and 20% in 2012.

Very good. And then, Greg, can you just talk a little bit about, when do you think, your CapEx catches you up enough that you can, the fleet age is sure to trend down and you can get ahead of these rising maintenance cost?

Well, since it's kind of accumulative factor that grows slowly overtime, you have the same recovery slowly overtime. So, I would say if it took a couple of years to cause the maintenance cost to go up on an ageing fleet, it would take another couple of years to get that average fleet age down. So, about the same time, for improvement as on the downturn.

Alright. Thanks for your time guys.

Thank you. Our next question is from David Ross with Stifel Nicolaus. Your line is now open.

Good morning, gentlemen.

Good morning.

A question about the TLC acquisition. I saw that [Inaudible] and his team came over and you said that that Peter was assuming the same roll, I guess, heading up the consumer package goods sector or segment of your SCS operations. Are you fooling other customers and business in under hands? Are you running a bigger unit? Or whether any technologies that TLC had or either improving Ryder's SCS operations or I guess, Ryder's sales [ph] technology is improving TLC's operations.

Yeah. I will let John Williford talk about that organizational design in TLC and CPG.

Right now, the focus is to bring this unit on, as you mentioned, to become our CPG vertical industry group and at first we’re going to be focused on bringing the other strengths we have to that industry group. So we can grow it. So, we think we had more geographic presence, stronger TM and DCC products and more resources and in engineering and continuous improvements. So, we’re putting all those things into the old TLC as our CPG industry group, so we can organically grow that industry group faster than it was growing on it's own. We have some CPG business. It’s not a lot. If you can see it reported in our Retail/CPG Industry Group and eventually, probably, some of that will move over. But that’s not our priority right now.

Okay. And then, one follow up, I guess, on the technology and sales initiative that you mentioned investing for the future at FMS technology, it sounds like that’s mostly for maintenance. Can you talk about the, I guess, sales initiatives going on?

Sure. Robert?

Yes, David, one of the key initiatives there, as we are spending some money on some of our front end customer facing technology in terms of being able to communicate through the web and being able to have more interaction with customers. That’s going to take us a few months to really get that going but we are spending some money there. We are also investing in adding some additional sales people to the organization, which I think is important as we get into the next couple years we expect to have more activity around replacement and some more activity around growth.

Excellent. Thank you very much.

You welcome.

Thank you. Our next question is from Jon Langenfeld with Baird. You're line is now open. Jon Langenfeld – Baird: Good morning, I have one on the rental side . I understand that the cost of the assets are going up but your revenue per unit is approaching an all time high not adjusting for mix. I guess I am curious as you think about that fleet are you interested in growing it meaningfully further. You talked about the 10% this year but how you think about it over the course of the cycle knowing that this is more cyclical part of the business?

Yes, I think the term I would like to use is we like to grow it appropriately based on what we're experiencing in the market place. So we put there is first stake in the ground that based on what we see that the anticipated size. Depending on customer confidence strength in the economy and the willingness to have enough confidence in their own business that they might be spending more on lease. That could shift a little bit, but that’s our best guess on what we think appropriately seems to make sense and you're right we are approaching the higher side but as long as customers are more willing to pay a premium without having a make a longer term commitments and until maybe they have got more confidence in their business and their economy then that’s sort of the way this is playing out for a while.

And then how do you think about the leased product. We live in more uncertain times today then we have in the past and customers willingness to sign up for five or six year type contracts may have a really taken a hit, so is there anything in the leased product you can do or the structure the pound you can do to maybe make that less onerous to the customer in terms of having to commit over a long duration?

Yes, we don’t think that in the long-term any of the fundamental value proposition changes or is harm but I think in a period of uncertainty customers make decisions more cautiously. The fact is that I think that the team especially in sales and marketing in conjunction with finance and returns have thought about additional options and flexibility for used equipment that give customers more options than they have in the past. We are very much open to you innovation in that area as well as innovation for enabling customers to take advantage of maintenance if they would like. So, our mindset and our approach is to try to be appropriately creative yet in the context and willing to make sure we always get the right return on the capital. But one other things Robert mentioned earlier about a desires for interfacing with customers is stay close to them and give them what they need right now and there is still somewhat tenuous environment.

Great. Thank you.

You welcome.

Thank you. Our next question is from Ed Wolfe with Wolfe Trahan. You're line is now open.

Hi, good morning, guys.

Good morning.

If you go to slide 20 where you breakout the revenue by segment, can you talk a little bit to when you combine the acquisitions and we look to a portion that in our model going forward where the revenue and and pretax is going to fall out among the divisions?

We can probably give you a fairly good idea on the revenue of the amounts you see there. The total operating revenue in FMS is about 1% of the total operating comes from acquisitions to about half of the contractual a very tiny piece of the rental and about one-fifth of the total operating. In SCS about 20 to 29 maybe about 5 to 6 percentage points comes from organic growth the rest comes largely from acquisition and DCC the best proportion comes from acquisition and a little bit from organic growth. Now for modeling I think you can make some estimates about flowthrough but that will give you an idea of what drives the revenue if that would be helpful.

That is in this directionally on the pretax because in your flowchart on the next page you have got $0.15 to $0.17. If you had a point to it say we're bulk of that $0.15 or $0.17 is coming from where should we look at that?

You can probably do it about a 50-50 split. Now as it plays out you might say 40-60 from one side or the other but for ballpark purposes about half in each segment.

So half in FMS and half in combined supply chain dedicated?

Yes.

Okay.

Art, do you want to clarify anything there?

Yes, I think in total if some of it will depend on the way we handle the interest allocation across the segments. Some of the interest costs high proportion will appear in the FMS side. So if you look at the deals including all in with the financing element it's to what Greg said which was that 50-50 split approximately.

Okay and then one more and I'll get back online. When you think about cash, using the cash for the business this year and CapEx going up and the acquisitions you made at the end of the year, what do we think in terms of what the intention for share buybacks further acquisitions and leveraging the balance sheet further?

Yes, Well, the right target for the model of our company is to get the leverage right and to keep moving toward that. I think first call will be on how the things look for additional acquisitions. Clearly, as you’ve indicated, we are having to step up capital expenditures, so that’s a part of it. If we have acquisition good continuous accretive acquisition opportunities, that’s where we want to go for. We think that that’s good for long term growth and share and development of the organization, for our owners. If those should not play out then we re-evaluate and decide do you want to do something else with the share repurchase. But it would be too early in the year to conclude that yet.

So, the authority that is still out there on the share repurchase we shouldn’t assume that are going to do that all this year or we should?

Well the only authority that still open is the anti-dilutive, so we will always do the anti-dilutive that offsets employee share purchase plan and any option exercises. I am talking about a new, like the 100 million one, that we just finished, it would actually impact the leverage.

Okay, thanks. I’ll haul back in the line Thank you.

You’re welcome.

And next question is from Jeff Kauffman fromStearn Agee. Your line is now open. Jeff Kauffman – Stearn Agee & Leach: Thank you very much. Well, congratulations on a solid year. Real quick questions. First of all, regarding free cash, since you’re to be in a deficit situation this year, I noticed your share guidance was based on just the current plan. Is this basically saying until you get back to a positive free cash situation you wouldn’t use leverage to install a new share repurchase plan, you want that for acquisitions or is that just you are not making any assumptions about share repurchase?

We are not making assumptions yet. We really want to see how additional potential acquisition opportunities play out. The state of positive or slightly negative free cash flow will play a secondary element. But the issue is to get the right leverage for our model, I mean, that’s important as we try to get the right amount of, the right quantity cost to capital versus return on capital that is significant. But at this point first priority is to assess additional good accretive acquisitions and then we’ll make the call on any share repurchase as appropriate. Jeff Kauffman – Stearn Agee & Leach: Okay, thank you. And last question, you mentioned the large number of full service fleets renewals and this assessed with the ’05, ‘06 coming off. When you talk about the negative impact in terms of next year’s earnings, is that more based on the idea that there is a certain amount of that business that doesn’t renew or is that based on the idea that maybe the spread with that was signed in ’05, ’06 is going to be little bit different as you resign it today?

No, actually neither. The bar chart on that waterfall that shows the $0.28 to $0.32 is really largely proportionately from the fact the fleet is on average eight months older and therefore has heavier cost to it. That is I think the really way you want to interpret that. And Robert if you want to add anything please?

The only thing I’ll add to that is that as you know Jeff there is a lag between when we signed the business and the units actually start to come in and really impact the P&L and as lot of work we are expecting is towards the second half of the year. You don’t really see the benefit of that until 2012 in this case. And that’s why you’re still seeing some of that lag. And Greg mentioned, getting the fleet age back in line with where we’d like it to be is probably going to be a couple year endeavor. Jeff Kauffman – Stearn Agee & Leach: Okay, guys, congratulations and thank you.

Thank you

Your next question is from Art Hatfield with Morgan Keegan. Your line is now open.

Hi, good morning everybody. Just little quick, just kind of couple of questions here. I noticed in the slides on the CapEx guidance side you had mentioned in the footnote that you have an assumption of $99 million spend on acquisitions this year. Can we assume a portion of that was for the Scully companies or all of that or?

Yes, yes. That would be our estimate for both those acquisitions Carmenita and Scully Scully combined.

So that has no further acquisition assumption built in for the year.

Yes, correct.

But that is not to say that couldn’t change, if the right opportunity came up?

Exactly.

Okay. Secondarily, looking at the waterfall chart, the biggest drag as you mentioned Greg is the full service fleets business and the biggest tailwind is the commercial rental business. As you move forward and you sign new customers to full service fleet leases. Is there a way to think about how those two segments impact the income statement, is there a way that if the FMS gets better the commercial rental goes down or do you think both of those can continue to be positive contributors to the overall business.

Well, there’ll sure be positive contributors if you’re asking for future waterfall charts what that might look like, they would over the multi-year period inversely move opposite. So the size or the positive on the commercial rental will get smaller but the lease will turn from negative to positive. So I think you got a net gain over time and that’s kind of what would expect to happen.

Okay, thanks that’s very helpful thanks for your time

Thank you; our next question is from Matthew Brooklier with Piper Jaffray, your line is now open.

Hey thanks good morning guys if I listen to your comments regarding the core lease business; it sounds like there are going to be a greater number of overall renewals going forward which is a good thing yet the fleet has aged and it sounds like a decent portion of your CapEx is going to go to I guess refreshing vs. growth. So if I kind of add those two components together, it would sound like the fleet, the overall fleet and you may have already eluded to the overall fleet. In ’11 its going to be smaller vs. Tano [ph]. I was just wondering if you guys wanted to provide some guidance in terms of the size of the fleet in ’11 vs. ‘10

Our first point, the capital is there representing both refreshing or replacing existing units and some growth I believe the actual expectation is that the 2011 fleet size by the end of the year will be higher than the end of the fleet size in 2010 and Robert if you have specifics you can share them.

Yeah I think , Matt I think what Greg said right now is right now we are expecting to be slightly higher at the end of 2011 vs. the end of 2010. Grand that includes the acquisition so if you were to kind of draw out what we expect to you to like. we expect that the fleet to kind of continue do what it did in the fourth quarter which is maybe slightly down, kind of bumping along the bottom to about the middle of the year and then begin to pick up more towards the second half of the year. And then end up slightly up at the second half of the year.

It sounds similar to your thoughts on the fleet I think when you said your third quarter earnings call.

That’s correct

To strip off the acquisitions from the total fleet count I mean if you strip off the acquisitions that means you’re going to be organically if you will flattish or still gonna be up a little bit

That’s correct; organically flattest if you strip of the the acquisitions.

Flattish end point to end point knowing that it’s actually dipped down a little bit towards the middle of the year.

Okay understood, and my last question you quoted that miles on these equipment are 4% year-over-year yet the fleet’s smaller if you will. Is that adjusted for a smaller fleet size.

Yeah that is, that’s based on the fleet side that we have at that point.

Okay Apples to apples it’s the comparison number?

It is its per unit; if you look at what happened throughout the year in the first quarter, we were up 1% in the second quarter up 4%, third quarter up 3%; and now fourth quarter up 4% again. So we ended the fourth quarter pretty strong in terms of year-over-year comps and even throughout the quarter we saw miles per unit grow in the fourth quarter. So, I think that was a positive trend that we saw in the fourth.

And that calculation always does a per unit by power unit.

Okay so there is the overall adjustment for the total size of the fleet and any change in the fleet count .

Right.

Okay sounds good; thank you

You welcome.

Thank you our next question is from George Pickral with Stephens; your line is now open.

Hey good morning guys; I just want to make sure on the lease renewals in 2011. that the 20% of the fleet that renewing, do you think everyone renews the same amount of trucks or are we going to see this continued trend where the client might reduce his fleet size by one to two trucks given the -- Robert ?

Well George I think, we see we’re going to continue to see little bit of that, there’s certainly just of what we’ve seen in the last few quarters. We’re seeing less of it than we saw at the beginning of 2010. So we expect that trend to continue where you’ll see more and more of the units being replaced versus downsized and we expect year-over-year retention to improve as a result of that because certainly customers will want to renew their fleet at a higher clip than what they were last year.

Gotcha. So then the follow-up question would be on the utilization. When do we kind of reach that tipping point for the increase in miles per tractor per day where people need to start either releasing the same amount of trucks or growing the number of trucks at least.

Yes. As I mentioned, we expect; we expect that to really begin the show in the second half of the year but it is not a perfect science, because its not only a matter of how many miles per unit they’re running but what their confidence is in the sustainability of the business they are seeing. And that’s kind of the unknown; and that’s the one that makes it little bit more difficult to understand when that happens. But we are still just to put it in perspective we’re still about 3% off the peak miles per unit that we’ve seen historically. So there’s still some more room for that miles per unit to go up.

Okay. Customers clearly are still sort of giving themselves a cushion, I mean when you look at the strength of rental demand price and utilization clearly a lot of those, the majority of those are probably leased customers who are taking advantage of the rental capacity. So, it won't be just an isolated miles per power unit of the existing fleet. You know, they are also drawing on capacity from the commercial rental fleet.

Right. Thanks for the time.

Sure.

Thank you. Our next question is from Peter Nesvold with Jefferies. Your line is now open.

Good morning.

Good morning.

When I look at the waterfall slide in slide 21, the commercial rental number does really jump out a lot I mean. I was hoping to understand a little bit better. The commercial rental is only about 11% of revenue and I think you said, you are growing the fleet 10%. But I will look just at that one time and I mean, that’s all your earnings growth for this year. And that alone is driving earnings up about 30% higher. So, intuitively, it seems like you are trying to raise pricing in that business, in order to stimulate more contractual lease demand, push people over to that side of the table. But it's still a fairly fragmented market. So, what I want to understand is how do you guard yourself against pricing yourself out of this market. Or and looking at it differently, in another way, maybe asking the same question is how do you get 30% earnings growth from something that’s only 10% of your revenue base?

Well, historically, as you might expect, you get a lot of bottom line pull through proportionally for every dollar of revenue. And that’s always the case. On the way down, it pulls it down that way and the way up, you get the same advantage. This is not different than what happened in 2010. This is the first sign of a recovering economy and customers move to the product because they've got additional capacity even if they are uncertain about it in the long-term. The assumption that we only move the prices up to try to move people towards lease wouldn’t be totally true. The reality is that we never want to price ourselves out of the market. We not only manage the ads essentially but we are very attuned to every rental desk in the country about supply and demand by every vehicle class. And when the lots are empty, you just basically are doing supply and demand and those prices move up to allocate the resources. So, that really has as much more to do to within anything and that’s what we are really attuned to on a daily basis on what goes on in those rental counters and in the lots.

And as a follow up, you had mentioned earlier in the call that your average cost of fund will decline this year as you are rolling over your debt structure. I don’t see that on the water fall chart. Is there a way of quantifying what the lower average expense will contribute to EPS growth this year?

I guess, directionally, we are looking at probably a 30 to 40 basis point drop in our effective rate versus 2010. That’s probably is the easiest way to look at.

Okay, great. Thank you.

Thank you. Our next question is from David Campbell with Thompson, Davis & Company. Your line is now open. David Campbell - Thompson, Davis & Company: Yes. Thank you. Can you estimate what your gains from equivalent sales may be this year? What your depreciation might be and interest expense?

Okay. Art, I will let you dig into that a bit. We are making on the waterfall one estimate about both [Audio Gap] gain.

You’re welcome.

Thank you. Our next question is from [Brian] with Keybanc Capital Markets.[ph] Your line is now open.

Hey guys. Good afternoon.

Afternoon.

Yeah, I guess, the one question, I just want to go back to the commercial rental in the revenue per unit trend that you are seeing there recently, obviously, had improved, pretty nicely in the last couple of quarters. I just wanted to get a sense, I guess, how sticky that is, but the pricing within rental, towards the back half of this year. If you are assuming leasing demand potentially improving?

Well, I think the stickiness is the sheer reflection of the supply and demand. So, as long as there continues to be additional as we anticipate requirements for units and we can continue to sort of feather in and add in a number of units in those areas that need units because right now we were running a bit short in many areas as long as those trends continue and you’ve got still limited supply compared to the past and increasing demand that's what will cause near terms the stickiness on the price. But it’s all about what's going on in the reality the market place but we think that's probably a reasonable assumption for us in 2011.

Okay, thanks. And then, for my second question, you had mentioned some maintenance initiatives on the leasing sweet in 2011, I am not sure you guys would give an additional detail on that, if I just missed it but just wanted to see if you guys can maybe just elaborate on that little bit?

Go ahead, Bob.

:

If you're also asking about the strategic investments and maintenance those have to do with technology and productivity initiatives that make the technician’s job easier and more focused on task at hand in working on the equipment as opposed to slower or less accessible of information in order to get the job done. Those would be the kinds of maintenance strategic efforts, technologically that we’ll doing.

And Greg on those strategic efforts, when do we start to see the benefits from that? Is that something that is more towards the end of the year, you start to really see those initiatives come to fruition or is that more maybe a 2012 event?

I think that by the time you get things implemented across the network people trained, you’re at benefits more into next year.

Okay, thanks. Thanks for time

Thank you. Our final question today is from Peter Nesvold with Jefferies. Your line I now open. Peter Nesvold – Jefferies : Great. Just a quick follow up. I don’t if this was asked earlier, if it was I apologize. Seasonally it looks like 1Q versus the full year is little bit lower than we normally would see. And I am just trying to understand, I mean, it’s not a huge delta but is there. I’m just curious what color you might offer about that?

Art?

I think if anything, we have some of the integration of the acquisitions with Scully predominantly there are some items in there that is impacting it. And also the TLC business has some of that same seasonality that we’ve seen in our rental business actually. So, we kind of add a little bit of chunk of that.

I’d also say that if things are bit uncertain, I mean, we don’t even January results yet, so is based on our first forecast. If this call or week later we might be able to adjust one way or another but its our best estimate. We also don’t know and we really never liked to talk about what, but this has been brutal and unusual. We also don’t what that might cause. So we think that this is kind of like down middle of the fairway is a good increase over last year and we’ll see how it plays out

Ok great thank you.

You’re welcome.

Thank you and currently showing no further questions. I’d like to turn the call over to Mr. Greg Swienton for closing comments.

Well. Showing no further questions we went jus a few minutes long but it was a more to cover. I think we got everybody’s questions in. So thank you for participating, so we’re going to sign off and have a safe day.

Thank you, this does concludes today’s conference thank you for participating. You may disconnect at this time.