Hertz 2007 Annual Report Download - page 94

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Year Ended December 31, 2005
Combined(6)
Car Equipment Corporate
Rental Rental and Other
Income (loss) before income taxes and minority interest . . $374.6 $239.1 $ (72.0)
Adjustments:
Purchase accounting(1) ..................... 0.7 2.0 —
Non-cash debt charges(2) .................... 0.3 — 8.8
Unrealized transaction gain on Euro-denominated
debt(5) ............................... — — (2.8)
European headquarters relocation costs .......... 4.0 — —
Adjusted pre-tax income (loss) .................. $379.6 $241.1 $ (66.0)
For the Successor Period December 21, 2005
to December 31, 2005
Car Equipment Corporate
Rental Rental and Other
Loss before income taxes and minority interest ....... $(16.2) $ (11.4) $ (5.6)
Adjustments:
Purchase accounting(1) ..................... 0.7 2.0 —
Non-cash debt charges(2) .................... — — 0.3
Unrealized transaction gain on Euro-denominated
debt(5) ............................... — — (2.8)
Adjusted pre-tax loss ........................ $(15.5) $ (9.4) $ (8.1)
For the Predecessor Period January 1, 2005
to December 21, 2005
Car Equipment Corporate
Rental Rental and Other
Income (loss) before income taxes and minority interest . . $390.8 $250.5 $ (66.4)
Adjustments:
Non-cash debt charges(2) .................... 0.3 — 8.5
European headquarters relocation costs .......... 4.0 — —
Adjusted pre-tax income (loss) .................. $395.1 $250.5 $ (57.9)
(1) Includes the purchase accounting effects of the Acquisition and any subsequent acquisitions on our results of
operations relating to increased depreciation and amortization of tangible and intangible assets and accretion of
revalued workers’ compensation and public liability and property damage liabilities.
(2) Non-cash debt charges represent the amortization of deferred debt financing costs and debt discounts. During the year
ended December 31, 2007, also includes $20.4 million associated with the ineffectiveness of our HVF swaps and the
write-off of $16.2 million of unamortized debt costs associated with a debt modification. During the year ended
December 31, 2006, also includes $1.0 million associated with the reversal of the ineffectiveness of our HVF swaps.
During the Successor period ended December 31, 2005, also includes $1.0 million associated with the ineffectiveness of
our HVF swaps.
(3) During the year ended December 31, 2007, includes an unrealized gain on interest rate swaptions.
(4) Represents a decrease in the employee vacation accrual during the year ended December 31, 2007, relating to a
change in our U.S. vacation policy which now provides for vacation entitlement to be earned ratably throughout the year
versus the previous policy which provided for full vesting on January 1 each year.
(5) Represents unrealized gains and losses on currency translation of our Euro-denominated debt. On October 1, 2006, we
designated this Euro-denominated debt as an effective net investment hedge of our Euro-denominated net investment
in our foreign operations, as such we will no longer incur unrealized exchange transaction gains or losses in our
consolidated statement of operations.
(6) Amounts for the year ended December 31, 2005, the Successor period ended December 31, 2005 and Predecessor
period ended December 20, 2005, are based on actual results and therefore do not give effect to our new capital
74