Hertz 2008 Annual Report Download - page 100

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ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS (Continued)
The following table reconciles our car rental revenue to our rental rate revenue and rental rate revenue per transaction day
(based on December 31, 2007 foreign exchange rates) for the years ended December 31, 2008, 2007 and 2006 (in millions of
dollars, except as noted):
Years Ended December 31,
2008 2007 2006
Car rental revenue per statement of operations .................. $6,730.4 $6,800.7 $6,273.6
Non-rental rate revenue ................................. (989.0) (972.9) (890.6)
Foreign currency adjustment .............................. 19.7 136.4 295.1
Rental rate revenue .................................... $5,761.1 $5,964.2 $5,678.1
Transaction days (in thousands) ............................ 127,897 129,355 123,251
Rental rate revenue per transaction day (in whole dollars) ............ $ 45.04 $ 46.11 $ 46.07
(c) Adjusted pre-tax income is calculated as income before income taxes and minority interest plus non-cash purchase
accounting charges, non-cash debt charges relating to the amortization of deferred debt financing costs and debt discounts
and certain one-time charges and non-operational items. Adjusted pre-tax income is the measure utilized by management in
making decisions about allocating resources to segments and measuring their performance. Management believes this
measure best reflects the financial results from ongoing operations. The following table reconciles income (loss) before
income taxes and minority interest by segment to adjusted pre-tax income by segment for the years ended December 31,
2008, 2007 and 2006 (in millions of dollars):
Year Ended December 31, 2008
Car Equipment
Rental Rental
Loss before income taxes and minority interest .................. $(385.3) $(629.3)
Adjustments:
Purchase accounting(1) ................................ 40.2 58.8
Non-cash debt charges(2) .............................. 71.1 10.3
Unrealized loss on derivatives(3) .......................... 12.0 —
Realized gain on derivatives(3) ........................... (9.8) —
Restructuring charges ................................ 98.4 103.2
Restructuring related charges(4) .......................... 19.5 3.1
Impairment charges(5) ................................ 443.0 725.9
Adjusted pre-tax income ................................ $289.1 $ 272.0
Year Ended December 31, 2007
Car Equipment
Rental Rental
Income before income taxes and minority interest ................ $468.6 $308.5
Adjustments:
Purchase accounting(1) ................................ 35.3 58.1
Non-cash debt charges(2) .............................. 66.5 11.2
Unrealized gain on derivatives(3) .......................... (4.1) —
Restructuring charges ................................ 64.5 4.9
Vacation accrual adjustment(6) ........................... (25.8) (8.9)
Adjusted pre-tax income ................................ $605.0 $373.8
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