Hertz 2007 Annual Report Download - page 226

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Non-GAAP Reconciliations
(In millions)
Condensed Consolidated Statement of Operations
Year Ended December 31, 2007 Year Ended December 31, 2006
As As As As
Reported Adjustments Adjusted Reported Adjustments Adjusted
Total revenues ............... $8,685.6 $ — $8,685.6 $8,058.4 $ — $8,058.4
Expenses:
Direct operating .............. 4,644.1 (85.0)(a) 4,559.1 4,476.0 (75.9)(a) 4,400.1
Depreciation of revenue earning
equipment ................ 2,003.4 (19.6)(b) 1,983.8 1,757.2 (13.8)(b) 1,743.4
Selling, general and administrative . 775.9 (63.4)(c) 712.5 723.9 (57.0)(c) 666.9
Interest, net of interest income .... 875.4 (105.9)(d) 769.5 900.7 (139.4)(d) 761.3
Total expenses ............... 8,298.8 (273.9) 8,024.9 7,857.8 (286.1) 7,571.7
Income before income taxes and
minority interest ............. 386.8 273.9 660.7 200.6 286.1 486.7
Provision for taxes on income ..... (102.6) (128.6)(e) (231.2) (68.0) (102.3)(e) (170.3)
Minority interest .............. (19.7) — (19.7) (16.7) — (16.7)
Net income ................. $ 264.5 $ 145.3 $ 409.8 $ 115.9 $ 183.8 $ 299.7
(a) Represents the increase in amortization of other intangible assets, depreciation of property and equipment and
accretion of certain revalued liabilities relating to purchase accounting. For the year ended December 31, 2007,
also includes restructuring charges of $41.2 million and a favorable vacation accrual adjustment of
$29.8 million.
(b) Represents the increase in depreciation of revenue earning equipment based upon its revaluation relating to
purchase accounting.
(c) For the year ended December 31, 2007, includes restructuring charges of $55.2 million and a favorable
vacation accrual adjustment of $6.5 million. Also includes an increase in depreciation of property and
equipment relating to purchase accounting, among other adjustments which are detailed in the Adjusted
Pre-Tax Income (Loss) and Adjusted Net Income (Loss) reconciliation.
(d) Represents non-cash debt charges relating to the amortization of deferred debt financing costs and debt
discounts. For the year ended December 31, 2007, also includes $20.4 million associated with the
ineffectiveness of our interest rate swaps and the write off of $16.2 million of unamortized debt costs associated
with a debt modification. For the year ended December 31, 2006, also includes interest on the $1.0 billion Hertz
Global Holdings, Inc., or ‘‘HGH,’’ loan facility of $39.9 million and $1.0 million associated with the reversal of the
ineffectiveness of our interest rate swaps.
(e) Represents a provision for income taxes derived utilizing a normalized income tax rate (35%).