Hertz 2008 Annual Report Download - page 156

HERTZ GLOBAL HOLDINGS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Other intangible assets, net, consisted of the following major classes (in thousands of dollars):
December 31, 2008
Gross Net
Carrying Accumulated Impairment Carrying
Amount Amortization Charge Value
Amortizable intangible assets:
Customer-related .................... $ 620,217 $(187,885) $ (17,000) $ 415,332
Other ............................. 10,885 (4,549) — 6,336
Total ............................ 631,102 (192,434) (17,000) 421,668
Indefinite-lived intangible assets:
Trade name ........................ 2,624,000 — (434,000) 2,190,000
Other ............................. 9,918 — — 9,918
Total ............................ 2,633,918 — (434,000) 2,199,918
Total other intangible assets, net ...... $3,265,020 $(192,434) $(451,000) $2,621,586
December 31, 2007
Gross Net
Carrying Accumulated Carrying
Amount Amortization Value
Amortizable intangible assets:
Customer-related ............................. $ 617,012 $(124,647) $ 492,365
Other ...................................... 5,898 (1,505) 4,393
Total ..................................... 622,910 (126,152) 496,758
Indefinite-lived intangible assets:
Trade name ................................. 2,624,000 — 2,624,000
Other ...................................... 2,709 — 2,709
Total ..................................... 2,626,709 — 2,626,709
Total other intangible assets, net ............... $3,249,619 $(126,152) $3,123,467
Amortization of other intangible assets for the years ended December 31, 2008, 2007 and 2006, was
$66.3 million, $62.6 million and $61.6 million, respectively. Based on our amortizable intangible assets
as of December 31, 2008, we expect amortization expense to range from $59.9 million to $64.5 million for
each of the next five fiscal years.
During the year ended December 31, 2008, we added 72 locations by acquiring former franchisees in
our domestic and international car rental operations, as well as four locations related to external
acquisitions done within our domestic and international equipment rental operations. Total cash paid for
intangible assets during the year ended December 31, 2008 was $19.0 million. We recognized
$11.8 million in amortizable intangible assets and $7.2 million in indefinite-lived intangible assets during
the year ended December 31, 2008. Each of these transactions has been accounted for using the
purchase method of accounting in accordance with SFAS No. 141, and operating results of the acquired
entities from the dates of acquisition are included in our consolidated statements of operations. The
allocation of the purchase price to the tangible and intangible net assets acquired is preliminary and
subject to finalization. These acquisitions are not material, individually or collectively, to the consolidated
amounts presented within our statement of operations for the year ended December 31, 2008.
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