Hertz 2008 Annual Report Download - page 195

HERTZ GLOBAL HOLDINGS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Note 11—Quarterly Financial Information (Unaudited)
A summary of the quarterly operating results during 2008 and 2007 were as follows (in thousands of
dollars, except per share data):
First Second Third Fourth
Quarter Quarter Quarter Quarter
2008 2008 2008 2008
Revenues ....................$2,039,161 $2,275,277 $2,421,874 $ 1,788,743
Operating income (loss): income (loss)
before income taxes, interest
expense and minority interest ..... 140,381(1)(2)(5) 298,898(1)(2)(5) 240,747(1)(2)(5) (1,217,685)(1)(2)(7)
(Loss) income before income taxes and
minority interest ............... (55,820)(3) 92,985(3)(6) 26,160(3) (1,446,132)(3)(6)(7)
Net (loss) income ............... (57,704)(4)(8) 51,247(4) 17,664(4)(8) (1,217,953)(4)(7)
(Loss) earnings per share, basic .....$ (0.18) $ 0.16 $ 0.05 $ (3.77)
(Loss) earnings per share, diluted ....$ (0.18) $ 0.16 $ 0.05 $ (3.77)
First Second Third Fourth
Quarter Quarter Quarter Quarter
2007 2007 2007 2007
Revenues .......................$1,921,532 $2,175,664 $2,449,612 $2,138,823
Operating income: income before income
taxes, interest expense and minority
interest ....................... 139,014(9)(10) 332,473(9)(10)(13) 495,276(9)(10)(13) 295,479(9)(10)(13)
(Loss) income before income taxes and
minority interest ................. (90,573)(11) 140,959(14) 255,126(15) 81,308(15)
Net (loss) income .................. (62,566)(12) 83,675(12) 162,707(12)(16) 80,743(12)(16)
(Loss) earnings per share, basic ........$ (0.20) $ 0.26 $ 0.51 $ 0.25
(Loss) earnings per share, diluted .......$ (0.20) $ 0.26 $ 0.50 $ 0.25
(1) The first quarter of 2008, second quarter of 2008, third quarter of 2008 and fourth quarter of 2008 include
increases of $4.2 million, $2.2 million, $12.1 million and $14.2 million, respectively, in depreciation expense
related to the net effects of changing depreciation rates to reflect changes in the estimated residual value of
revenue earning equipment.
(2) The first quarter of 2008, second quarter of 2008, third quarter of 2008 and fourth quarter of 2008 include
$19.6 million, $32.7 million, $74.9 million and $88.9 million, respectively, of restructuring charges. See
Note 12—Restructuring.
(3) The first quarter of 2008, second quarter of 2008, third quarter of 2008 and fourth quarter of 2008 include
$2.3 million, $2.7 million, $2.8 million and $4.0 million, respectively, of ineffectiveness on our interest rate
swaps.
(4) The first quarter of 2008, second quarter of 2008, third quarter of 2008 and fourth quarter of 2008 include
$5.8 million, $11.4 million, $23.0 million and $19.6 million, respectively, of tax benefit related to the restructuring
charge.
(5) The first quarter of 2008, second quarter of 2008 and third quarter of 2008 include an increase of $3.2 million,
and decreases of $0.7 million and $2.5 million, respectively, in our employee vacation accrual relating to a
change in our U.S. vacation policy in 2007 which provides for vacation entitlement to be earned ratably
throughout the year versus the previous policy which provided for full vesting on January 1 of each year.
(6) In the second quarter of 2008 and fourth quarter 2008 includes the write-off of $7.7 million and $22.3 million,
respectively, of unamortized debt costs of those countries who are not participating in the take-out asset-based
facilities.
(7) In the fourth quarter of 2008 includes impairment charges on goodwill, other intangible assets and property
and equipment of $1,168.9 million ($989.0 million, net of tax). See Note 1—Summary of Significant Accounting
Policies and Note 2—Goodwill and Other Intangible Assets. Also includes $3.8 million of pre-tax ($2.4 million
post-tax) adjustments related to prior quarters within the year, which had no impact on the quarters loss per
share.
(8) The first quarter of 2008 and third quarter of 2008 includes unfavorable tax adjustments of $4.3 million and
$1.3 million, respectively, related to prior year periods, which had a negative impact in the first quarter of 2008
of $0.01 per share and third quarter of 2008 less than $0.01 per share, respectively.
(9) The first quarter of 2007, second quarter of 2007, third quarter of 2007 and fourth quarter of 2007 include
increases of $3.3 million and $1.3 million, a decrease of $4.5 million and an increase of $0.5 million,
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