Hertz 2007 Annual Report Download - page 162

HERTZ GLOBAL HOLDINGS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
depreciation rate changes resulted in net increases of $13.7 million and $5.3 million in depreciation
expense for the years ended December 31, 2007 and 2006, respectively. During 2007 and 2006,
depreciation rates in certain of our equipment rental operations were decreased and resulted in net
decreases of $13.1 million and $18.4 million in depreciation expense for the years ended December 31,
2007 and 2006, respectively.
For the years ended December 31, 2007 and 2006, our worldwide car rental operations sold
approximately 163,400 and 101,000 non-program cars, respectively, a 61.8% increase.
Note 7—Taxes on Income
The components of income (loss) before income taxes and minority interest for the periods were as
follows (in thousands of dollars):
Successor Predecessor
Years ended
December 31, For the periods from
December 21, January 1,
2005 to 2005 to
December 31, December 20,
2007 2006 2005 2005
Domestic ........................... $189,978 $ 97,044 $(19,144) $371,570
Foreign ............................. 196,842 103,607 (14,074) 203,336
Total ............................. $386,820 $200,651 $(33,218) $574,906
The total provision (benefit) for taxes on income consists of the following (in thousands of dollars):
Successor Predecessor
Years ended
December 31, For the periods from
December 21, January 1,
2005 to 2005 to
December 31, December 20,
2007 2006 2005 2005
Current:
Federal ............................ $ 10,500 $ 6,576 $ — $ 577,573
Foreign ............................ 18,346 28,527 — 17,550
State and local ...................... 13,982 2,537 — 7,670
Total current ....................... 42,828 37,640 — 602,793
Deferred:
Federal ............................ 66,906 28,499 (5,711) (435,037)
Foreign ............................ 8,374 11,148 (4,822) 11,224
State and local ...................... (15,537) (9,293) (1,710) 12,352
Total deferred ...................... 59,743 30,354 (12,243) (411,461)
Total provision (benefit) ............. $102,571 $67,994 $(12,243) $ 191,332
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