Hertz 2007 Annual Report Download - page 189

HERTZ GLOBAL HOLDINGS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
The following table sets forth the computation of basic and diluted earnings (loss) per share (in
thousands of dollars, except per share amounts):
Successor Predecessor
Year ended
December 31, For the periods from
December 21, January 1,
2005 to 2005 to
December 31, December 20,
2007 2006 2005 2005
Basic and diluted earnings (loss) per share:
Numerator:
Net income (loss) ..................... $264,559 $115,943 $ (21,346) $371,323
Denominator:
Weighted average shares used in basic
computation ....................... 321,185 242,460 229,500 229,500
Add: Dilutive impact of stock options ....... 4,302 894 — —
Weighted average shares used in diluted
computation ....................... 325,487 243,354 229,500 229,500
Earnings (loss) per share, basic ............ $ 0.82 $ 0.48 $ (0.09) $ 1.62
Earnings (loss) per share, diluted ........... $ 0.81 $ 0.48 $ (0.09) $ 1.62
Diluted earnings per share computations for the years ended December 31, 2007 and 2006 excluded the
weighted-average impact of the assumed exercise of 1,645,623 and 11,520 stock options, respectively,
because such impact would be antidilutive.
Note 16—Subsequent Events
We are in the process of obtaining shareholder approval for an Omnibus long-term incentive plan, or the
‘‘Omnibus plan,’’ providing for grants of both equity and cash awards, including non-qualified stock
options, incentive stock options, stock appreciation rights, performance awards (shares and units),
restricted stock, restricted stock units and deferred stock units.
The purpose of the plan is to foster and promote the long-term financial success of Hertz Holdings and
its subsidiaries and materially increase shareholder value by (a) motivating superior performance by
plan participants, (b) providing participants with an ownership interest in Hertz Holdings, and
(c) enabling Hertz Holdings and its subsidiaries to attract and retain the services of outstanding
employees upon whose judgment, interest and special effort the successful conduct of its operations is
largely dependent.
The compensation committee of Hertz Holdings’ board of directors has the authority to grant awards
under the plan to employees and non-employee directors of Hertz Holdings and its subsidiaries to
whom awards will be granted, the type or types of awards to be granted and the terms and conditions of
any and all awards.
A maximum of 17.7 million shares of Hertz Holdings common stock will be reserved for issuance under
the Omnibus plan, which will include shares that remain available under the Hertz Global Holdings, Inc.
Stock Incentive Plan and the Director plan, both of which will terminate upon adoption of the Omnibus
plan. The shares of common stock to be delivered under the Omnibus plan may consist, in whole or in
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