Dollar Rent A Car 2011 Annual Report Download - page 34

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See the table below for a reconciliation of certain non-GAAP financial measures to the most directly comparable GAAP financial measure.
Reconciliation of reported GAAP pretax income per the
income statement to non-GAAP pretax income:
Year Ended December 31,
2011 2010 2009
(in thousands)
Income before income taxes - as reported $ 261,242 $ 221,418 $ 81,008
Increase in fair value of derivatives (3,244) (28,694) (28,848)
Long-lived asset impairment - 1,057 2,592
Pretax income - non-GAAP $ 257,998 $ 193,781 $ 54,752
Merger-related expenses 4,600 22,605 -
Non-GAAP pretax income, excluding merger-related expenses $ 262,598 $ 216,386 $ 54,752
Reconciliation of reported GAAP net income per the
income statement to non-GAAP net income:
Net income - as reported $ 159,550 $ 131,216 $ 45,022
Increase in fair value of derivatives, net of tax (a) (1,811) (16,826) (16,917)
Long-lived asset impairment, net of tax (b) - 645 1,497
Net income - non-GAAP $ 157,739 $ 115,035 $ 29,602
Merger-related expenses, net of tax (c) 2,679 13,172 -
Non-GAAP net income, excluding merger-related expenses $ 160,418 $ 128,207 $ 29,602
Reconciliation of reported GAAP diluted earnings
per share (“EPS”) to non-GAAP diluted EPS:
EPS, diluted - as reported $ 5.11 $ 4.34 $ 1.88
EPS impact of increase in fair value of derivatives, net of tax (0.06) (0.56) (0.71)
EPS impact of long-lived asset impairment, net of tax - 0.02 0.06
EPS, diluted - non-GAAP (d) $ 5.05 $ 3.80 $ 1.24
EPS impact of merger-related expenses, net of tax 0.09 0.44 -
Non-GAAP diluted EPS, excluding merger-related expenses (d) $ 5.13 $ 4.24 $ 1.24
(a) The tax effect of the increase in fair value of derivatives is calculated using the entity-specific, U.S. federal and blended state tax rate
applicable to the derivative instruments which amounts are ($1,433,000), ($11,868,000) and ( $11,931,000) for the years ended
December 31, 2011, 2010 and 2009, respectively.
(b) The tax effect of the long-lived asset impairment is calculated using the tax-deductible portion of the impairment and applying the entity-
specific, U.S. federal and blended state tax rate which amounts are $412,000 and $1,095,000 for the years ended December 31, 2010
and 2009, respectively.
(c) Merger-related expenses include legal, litigation, advisory and other fees related to a potential merger transaction. The tax effect of the
merger-related expenses is calculated using the entity-specific, U.S. federal and blended state tax rate applicable to the merger-related
expenses which amounts are $1,921,000 and $9,433,000 for the years ended December 31, 2011 and 2010, respectively.
(d) Since each category of EPS is computed independently for each period, total per share amounts may not equal the sum of the respective
categories.
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