Hertz 2008 Annual Report Download - page 146

HERTZ GLOBAL HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands of Dollars)
Years ended December 31,
2008 2007 2006
Cash flows from operating activities:
Net income (loss) .................................... $ (1,206,746) $ 264,559 $ 115,943
Adjustments to reconcile net income (loss) to net cash provided by
operating activities:
Depreciation of revenue earning equipment ................... 2,194,164 2,003,360 1,757,202
Depreciation of property and equipment ..................... 172,848 177,113 197,230
Amortization of other intangible assets ...................... 66,282 62,594 61,614
Amortization and write-off of deferred financing costs ............. 70,193 48,409 66,127
Amortization of debt discount ........................... 17,908 20,747 38,872
Debt modification costs ............................... — 16,177 —
Stock-based employee compensation charges ................. 28,023 32,939 27,179
Loss on revaluation of foreign denominated debt ............... — — 19,233
Unrealized (gain) loss on derivatives ....................... 12,058 (3,925) 2,454
Loss (gain) on ineffectiveness of interest rate swaps ............. 11,807 20,424 (1,034)
Provision for losses on doubtful accounts .................... 31,068 13,874 17,132
Asset writedowns ................................... 93,211 — —
Minority interest .................................... 20,786 19,690 16,714
Deferred taxes on income .............................. (234,810) 59,743 30,354
Gain on sale of property and equipment ..................... (9,602) (24,807) (9,743)
Impairment charges .................................. 1,168,900 — —
Changes in assets and liabilities, net of effects of acquisition:
Receivables ....................................... (329,708) 84,541 229,663
Inventories, prepaid expenses and other assets ................ 17,956 709 (18,548)
Accounts payable ................................... 36,615 304,170 (4,708)
Accrued liabilities ................................... (43,582) (20,299) 86,308
Accrued taxes ..................................... (1,801) 10,875 (3,789)
Public liability and property damage ....................... (20,068) (1,405) (23,381)
Net cash provided by operating activities ................... 2,095,502 3,089,488 2,604,822
Cash flows from investing activities:
Net change in restricted cash ............................. (71,836) (105,856) (260,212)
Revenue earning equipment expenditures ..................... (10,024,175) (11,342,095) (11,420,898)
Proceeds from disposal of revenue earning equipment ............. 8,846,094 9,214,266 9,555,025
Property and equipment expenditures ........................ (178,674) (196,001) (223,943)
Proceeds from disposal of property and equipment ............... 40,424 98,957 73,887
Acquisitions, net of cash acquired .......................... (70,920) (12,514) —
Other investing activities ................................ (488) (362) (2,016)
Net cash used in investing activities ...................... (1,459,575) (2,343,605) (2,278,157)
Cash flows from financing activities:
Proceeds from issuance of long-term debt ..................... 22,565 9,903 1,309,437
Repayment of long-term debt ............................. (860,515) (996,203) (1,247,425)
Short-term borrowings:
Proceeds ........................................ 396,679 695,000 747,469
Repayments ...................................... (374,333) (695,000) (901,123)
Ninety-day term or less, net ............................. 198,761 295,229 (465,595)
Distributions to minority interest ........................... (24,150) (13,475) (10,830)
Proceeds from sale of stock .............................. — — 1,284,503
Dividends paid ...................................... — — (1,259,518)
Exercise of stock options ................................ 6,754 5,599 —
Proceeds from disgorgement of stockholder short-swing profits ....... 138 4,755 —
Payment of financing costs .............................. (61,223) (39,895) (40,783)
Net cash used in financing activities ...................... (695,324) (734,087) (583,865)
Effect of foreign exchange rate changes on cash and equivalents ....... (76,540) 43,858 87,841
Net change in cash and equivalents during the period ............... (135,937) 55,654 (169,359)
Cash and equivalents at beginning of period ..................... 730,203 674,549 843,908
Cash and equivalents at end of period ......................... $ 594,266 $ 730,203 $ 674,549
Supplemental disclosures of cash flow information:
Cash paid during the period for:
Interest (net of amounts capitalized) ......................... $ 763,953 $ 814,059 $ 681,480
Income taxes ....................................... 33,408 28,293 33,645
Non-cash transactions excluded from cash flow presentation:
Revaluation of net assets to fair market value, net of tax ............ $ — $ — $ 75,459
The accompanying notes are an integral part of these financial statements.
126