Hertz 2007 Annual Report Download - page 140

HERTZ GLOBAL HOLDINGS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
The following summarizes the changes in our goodwill, by segment (in thousands of dollars):
Equipment
Car Rental Rental Total
Balance as of December 31, 2006 ....................... $336,579 $628,114 $964,693
Changes(1) ........................................ (18,445) 13,745 (4,700)
Balance as of December 31, 2007 ....................... $318,134 $641,859 $959,993
(1) Consists of changes primarily resulting from the adoption of FIN 48 and prior period adjustments to deferred taxes recorded
as of the acquisition date (see Note 7—Taxes on Income), partly offset by the translation of foreign currencies at different
exchange rates from the beginning of the period to the end of the period.
Other intangible assets, net, consisted of the following major classes (in thousands of dollars):
December 31, 2007 December 31, 2006
Gross Net Gross Net
Carrying Accumulated Carrying Carrying Accumulated Carrying
Amount Amortization Value Amount Amortization Value
Amortizable intangible assets:
Customer-related ........... $ 617,012 $(124,647) $ 492,365 $ 611,783 $(63,046) $ 548,737
Other .................. 5,898 (1,505) 4,393 1,270 (512) 758
Total .................. 622,910 (126,152) 496,758 613,053 (63,558) 549,495
Indefinite-lived intangible assets:
Trade name .............. 2,624,000 — 2,624,000 2,624,000 — 2,624,000
Other .................. 2,709 — 2,709 — — —
Total .................. 2,626,709 — 2,626,709 2,624,000 — 2,624,000
Total other intangible
assets, net .......... $3,249,619 $(126,152) $3,123,467 $3,237,053 $(63,558) $3,173,495
Amortization of other intangible assets for the years ended December 31, 2007 and 2006, the Successor
period ended December 31, 2005 and the Predecessor period ended December 20, 2005, was
$62.6 million, $61.6 million, $2.1 million and $0.7 million, respectively. Based on our amortizable
intangible assets as of December 31, 2007, we expect amortization expense to range from $61.3 million
to $63.6 million for each of the next five fiscal years.
During the year ended December 31, 2007, we added 48 locations by acquiring former franchisees in
our domestic and international car rental operations. Total cash paid for intangible assets during the year
ended December 31, 2007 was $12.2 million. We recognized $9.9 million in amortizable intangible
assets and $2.3 million in indefinite-lived intangible assets during the year ended December 31, 2007.
Each of these transactions has been accounted for using the purchase method of accounting, and
operating results of the acquirees from the dates of acquisition are included in our consolidated
statements of operations. These acquisitions are not material individually or collectively to the amounts
presented for the year ended December 31, 2007. Additionally, we purchased other indefinite-lived
intangible assets of $0.4 million, which were not part of any reacquired franchisee.
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