Hertz 2008 Annual Report Download - page 198

HERTZ GLOBAL HOLDINGS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Restructuring charges in our consolidated statement of operations can be summarized as follows (in
thousands of dollars):
Years Ended
December 31,
2008 2007
By Caption:
Direct operating ............................................ $171,510 $41,185
Selling, general and administrative .............................. 44,595 55,292
Total .................................................. $216,105 $96,477
Years Ended
December 31,
2008 2007
By Segment:
Car rental ................................................ $ 98,223 $64,514
Equipment rental ........................................... 103,151 5,034
Other reconciling items ...................................... 14,731 26,929
Total .................................................. $216,105 $96,477
Our consolidated balance sheet as of December 31, 2008 and 2007, included accruals relating to the
restructuring program of $60.3 million and $18.2 million, respectively. We expect to pay substantially all
of the remaining restructuring obligations by the end of the second quarter 2009. The following table sets
forth the activity affecting the accrual during the years ended December 31, 2008 and 2007 (in
thousands of dollars):
Pension
Involuntary and Post
Termination Retirement Consultant
Benefits Expense Costs Other Total
Balance as of January 1, 2007 ........ $ — $ — $ — $ — $ —
Charges incurred ................ 65,188 (366) 21,761 9,894 96,477
Cash payments ................. (48,886) (7) (19,772) (8,869) (77,534)
Other(1) ....................... (1,112) 478 116 (237) (755)
Balance as of December 31, 2007 ..... 15,190 105 2,105 788 18,188
Charges incurred ................ 83,784 5,606 9,994 116,721 216,105
Cash payments ................. (51,720) (11) (12,387) (12,321) (76,439)
Other(2) ....................... (3,838) (5,141) 246 (88,797) (97,530)
Balance as of December 31, 2008 ..... $43,416 $ 559 $ (42) $ 16,391 $ 60,324
(1) Includes $2.0 million of stock-based employee compensation expense relating to the acceleration of vesting for certain stock
options which has been classified as ‘‘Additional paid-in capital’’ on our consolidated balance sheet, a reduction of
$0.4 million in pension and post retirement liabilities which have been included within ‘‘Other accrued liabilities’’ on our
consolidated balance sheet and $1.0 million in translation gains, which have been included within ‘‘Accumulated other
comprehensive income (loss)’’ on our consolidated balance sheet.
(2) Consists of an increase of $83.7 million for the impairment of revenue earning equipment, $5.4 million for the impairment of
lease obligations, $5.1 million in pension and post retirement liabilities, $4.0 million for the impairment of fixed assets and
inventory, and $1.5 million in other benefits, partly offset by $2.2 million loss in foreign currency translation, which have been
included within ‘‘Accumulated other comprehensive income (loss)’’ on our consolidated balance sheet.
178