Hertz 2007 Annual Report Download - page 227

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Non-GAAP Reconciliations (Continued)
(In millions)
Condensed Consolidated Statement of Operations
Year Ended December 31, 2005
(Combined)
Pro Forma
Historical Adjustments Pro Forma
Total revenues .................................... $7,469.2 $ — $7,469.2
Expenses:
Direct operating ................................... 4,189.3 74.5(a) 4,263.8
Depreciation of revenue earning equipment ............... 1,599.7 13.0(b) 1,612.7
Selling, general and administrative ...................... 638.5 0.9(c) 639.4
Interest, net of interest income ......................... 500.0 323.6(d) 823.6
Total expenses .................................... 6,927.5 412.0 7,339.5
Income (loss) before income taxes and minority interest ...... 541.7 (412.0) 129.7
(Provision) benefit for taxes on income ................... (179.1) 109.2(e) (69.9)
Minority interest ................................... (12.6) — (12.6)
Net income (loss) .................................. $ 350.0 $ (302.8) $ 47.2
Income (Loss) Before Income Taxes and Minority Interest by Segment
Year Ended December 31, 2005 (Combined)
Car Equipment Corporate
Rental Rental and Other Total
Historical income (loss) before income taxes and minority
interest ................................... $374.6 $239.1 $ (72.0) $ 541.7
Pro Forma Adjustments:
Direct operating (a) ........................... (26.6) (34.0) (13.9) (74.5)
Depreciation of revenue earning equipment (b) ....... 16.8 (29.8) — (13.0)
Selling, general and administrative (c) ............. (17.2) (0.1) 16.4 (0.9)
Interest, net of interest income (d) ................ (56.0) (1.9) (265.7) (323.6)
Pro forma income (loss) before income taxes and
minority interest ............................ $291.6 $173.3 $(335.2) $ 129.7
(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.
(b) Represents the increase in depreciation of revenue earning equipment based upon its revaluation
relating to purchase accounting.
(c) Represents an increase in depreciation of property and equipment relating to purchase accounting.
(d) Represents the increase in interest expense giving effect to our new capital structure as if the debt
associated with the acquisition on December 21, 2005 had occurred on January 1, 2005.
(e) Represents a benefit for income taxes derived utilizing a normalized income tax rate of 35%. For the
year ended December 31, 2005, the impact of the reversal of the $35.0 million valuation allowance
on foreign tax credit carryforwards was excluded.