Hertz 2007 Annual Report Download - page 82

Successor Predecessor
December 31,
2007 2006 2005 2004 2003
Balance Sheet Data
Cash and equivalents and short-term investments . . . $ 730.2 $ 674.5 $ 843.9 $ 1,235.0 $ 1,110.1
Total assets(f) ........................... 19,255.7 18,677.4 18,580.9 14,096.4 12,579.0
Total debt ............................. 11,960.1 12,276.2 12,515.0 8,428.0 7,627.9
Stockholders’ equity(g) ..................... 2,913.4 2,534.6 2,266.2 2,670.2 2,225.4
(a) Includes fees and certain cost reimbursements from our licensees and revenues from our car leasing operations and
third-party claim management services.
(b) For the years ended December 31, 2007 and 2006, the Successor period ended December 31, 2005 and the
Predecessor period ended December 20, 2005, depreciation of revenue earning equipment was increased by
$0.6 million and reduced by $13.1 million, $1.2 million and $33.8 million, respectively, resulting from the net effects of
changing depreciation rates to reflect changes in the estimated residual value of revenue earning equipment. For the
years ended December 31, 2007 and 2006, the Successor period ended December 31, 2005, the Predecessor period
ended December 20, 2005, and the years ended December 31, 2004 and 2003, depreciation of revenue earning
equipment includes a net loss of $21.2 million, net gains of $35.9 million, $2.1 million, $68.3 million, $57.2 million and
a net loss of $0.8 million, respectively, from the disposal of revenue earning equipment.
(c) For the years ended December 31, 2007 and 2006, the Successor period ended December 31, 2005, the
Predecessor period ended December 20, 2005, and the years ended December 31, 2004 and 2003, interest income
was $41.3 million, $42.6 million, $1.1 million, $36.1 million, $23.7 million and $17.9 million, respectively.
(d) For the year ended December 31, 2007, we reversed a valuation allowance of $9.1 million relating to the realization of
deferred tax assets attributable to net operating losses and other temporary differences in certain European
countries. Additionally, certain tax reserves were recorded for various uncertain tax positions in Federal, state and
foreign jurisdictions. For the year ended December 31, 2006, we established valuation allowances of $9.8 million
relating to the realization of deferred tax assets attributable to net operating losses and other temporary differences in
certain European countries. Additionally, certain tax reserves were recorded for certain federal and state uncertain tax
positions. The Predecessor period ended December 20, 2005 includes the reversal of a valuation allowance on
foreign tax credit carryforwards of $35.0 million (established in 2004) and favorable foreign tax adjustments of
$5.3 million relating to periods prior to 2005, partly offset by a $31.3 million provision relating to the repatriation of
foreign earnings. The Predecessor period ended December 31, 2004 includes benefits of $46.6 million relating to net
adjustments to federal and foreign tax accruals.
(e) Amounts for the Successor period ended December 31, 2005 and the Predecessor periods are computed based
upon 229,500,000 shares of common stock outstanding immediately after the Acquisition applied to our historical net
income (loss) amounts. Amounts for the Successor years ended December 31, 2007 and 2006 are computed based
on the weighted average shares outstanding during the period applied to our historical net income (loss) amount.
(f) Substantially all of our revenue earning equipment, as well as certain related assets, are owned by special purpose
entities, or are subject to liens in favor of our lenders under the Senior ABL Facility, our asset-backed securities
program, the International Fleet Debt Facilities or the fleet financing facility relating to our car rental fleet in Hawaii,
Kansas, Puerto Rico and St. Thomas, the U.S. Virgin Islands, Brazil, Canada, Belgium and our U.K. leveraged
financing. Substantially all our other assets in the United States are also subject to liens in favor of our lenders under
our Senior Credit Facilities, and substantially all our other assets outside the United States are (with certain limited
exceptions) subject to liens in favor of our lenders under the International Fleet Debt Facilities or (in the case of our
Canadian HERC business) our Senior ABL Facility. None of such assets are available to satisfy the claims of our
general creditors. For a description of those facilities, see ‘‘Item 7—Management’s Discussion and Analysis of
Financial Condition and Results of Operations—Liquidity and Capital Resources.’’
(g) Includes equity contributions totaling $2,295 million to Hertz Holdings from investment funds associated with or
designated by the Sponsors on or prior to December 21, 2005, net proceeds from the sale of stock to employees and
the initial public offering of approximately $1,284.5 million and the payment of special cash dividends to our
stockholders of approximately $999.2 million on June 30, 2006 and approximately $260.3 million on November 21,
2006.
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