Hertz 2007 Annual Report Download - page 225

Definitions of Non-GAAP Measures (Continued)
Corporate Net Cash Interest (used in the calculation of Levered After-Tax Cash Flow before Fleet
Growth)
Corporate net cash interest represents total interest expense, net of total interest income, less car rental
fleet interest expense, net of car rental fleet interest income, and non-cash corporate interest charges.
Non-cash corporate interest charges represent the amortization of corporate debt financing costs and
corporate debt discounts.
Corporate Cash Taxes (used in the calculation of Levered After-Tax Cash Flow before Fleet
Growth)
Corporate cash taxes represents cash paid by us during the period for income taxes.
Levered After-Tax Cash Flow after Fleet Growth
Levered after-tax cash flow after fleet growth, or ‘‘levered cash flows,’’ is calculated as levered after-tax
cash flow before fleet growth less equipment rental fleet growth capital expenditures and less gross car
rental fleet growth capital expenditures plus car rental fleet financing.
Net Corporate Debt
Net corporate debt is calculated as total debt excluding fleet debt less cash and equivalents and
short-term investments, if any, and corporate restricted cash. Corporate debt consists of senior notes
and Euro medium term notes issued prior to the Acquisition; borrowings under our Senior Term Facility;
borrowings under our Senior ABL Facility; our Senior Notes; our Senior Subordinated Notes; and certain
other indebtedness of our domestic and foreign subsidiaries.
Corporate Restricted Cash (used in the calculation of Net Corporate Debt)
Total restricted cash includes cash and equivalents that are not readily available for our normal
disbursements. Total restricted cash and equivalents are restricted for the acquisition of vehicles and
other specified uses under our Fleet Debt programs, our like-kind exchange programs and to satisfy
certain of our self insurance regulatory reserve requirements. Corporate restricted cash is calculated as
total restricted cash less restricted cash associated with fleet debt.
Net Fleet Debt
Net fleet debt is calculated as total fleet debt less restricted cash associated with fleet debt. Fleet debt
consists of our U.S. ABS Fleet Debt, obligations incurred under our International Fleet Debt Facilities,
capital lease financings relating to revenue earning equipment that are outside the International Fleet
Debt Facilities, the Fleet Financing Facility, the Belgian Fleet Financing Facility, the Brazilian Fleet
Financing Facility, the Canadian Fleet Financing Facility, the U.K. Leveraged Financing and the
pre-Acquisition ABS Notes.
Restricted Cash Associated with Fleet Debt (used in the calculation of Corporate Restricted Cash
and Net Fleet Debt)
Restricted cash associated with fleet debt is restricted for the acquisition of vehicles and other specified
uses under our Fleet Debt programs and our car rental like-kind exchange program.