Hertz 2008 Annual Report Download - page 249

Non-GAAP Reconciliations (Continued)
(In millions)
EBITDA and Corporate EBITDA
Year Ended December 31, 2008 Year Ended December 31, 2007
Other Other
Car Equipment Reconciling Car Equipment Reconciling
Rental Rental Items Total Rental Rental Items Total
Income (loss) before income
taxes and minority interest . . . $ (385.3) $(629.3) $(368.2) $(1,382.8) $ 468.6 $308.5 $(390.3) $ 386.8
Depreciation and amortization . 2,003.7 423.6 6.0 2,433.3 1,856.6 380.6 5.9 2,243.1
Interest, net of interest income . 444.8 109.5 290.9 845.2 436.8 146.3 292.3 875.4
Minority interest .......... — — (20.8) (20.8) — — (19.7) (19.7)
EBITDA ................. 2,063.2 (96.2) (92.1) 1,874.9 2,762.0 835.4 (111.8) 3,485.6
Adjustments:
Car rental fleet interest ...... (450.7) — — (450.7) (427.8) — — (427.8)
Car rental fleet depreciation . . . (1,843.8) — — (1,843.8) (1,695.4) — — (1,695.4)
Non-cash expenses and
charges(a) ............ 83.0 — 30.0 113.0 60.4 2.7 39.1 102.2
Extraordinary, unusual or
non-recurring gains and
losses(b) ............. 551.1 832.2 23.5 1,406.8 38.7 (4.0) 42.2 76.9
Corporate EBITDA .......... $ 402.8 $ 736.0 $ (38.6) $ 1,100.2 $ 737.9 $834.1 $ (30.5) $ 1,541.5
(a) As defined in the credit agreements for the senior credit facilities, Corporate EBITDA excludes the impact of certain non-cash
expenses and charges. The adjustments reflect the following:
Year Ended December 31, 2008 Year Ended December 31, 2007
Other Other
Car Equipment Reconciling Car Equipment Reconciling
Non-Cash Expenses and Charges Rental Rental Items Total Rental Rental Items Total
Non-cash amortization and
write-off of debt costs included
in car rental fleet interest .... $ 71.0 $ — $ — $ 71.0 $ 64.4 $ — $ — $ 64.4
Non-cash stock-based employee
compensation charges ...... — — 28.0 28.0 — — 26.8 26.8
Non-cash charges for workers’
compensation ........... — — — — (0.2) 2.7 0.1 2.6
Non-cash charges for pension . . — — 2.0 2.0 — — 12.2 12.2
Unrealized (gain) loss on
derivative .............. 12.0 — — 12.0 (3.8) — — (3.8)
Total non-cash expenses and
charges ............... $ 83.0 $ — $ 30.0 $ 113.0 $ 60.4 $ 2.7 $ 39.1 $ 102.2
(b) As defined in the credit agreements for the senior credit facilities, Corporate EBITDA excludes the impact of extraordinary,
unusual or non-recurring gains or losses or charges or credits. The adjustments reflect the following:
Year Ended December 31, 2008 Year Ended December 31, 2007
Other Other
Extraordinary, Unusual or Car Equipment Reconciling Car Equipment Reconciling
Non-Recurring Items Rental Rental Items Total Rental Rental Items Total
Restructuring charges ........ $ 98.4 $ 103.2 $ 14.6 $ 216.2 $ 64.5 $ 4.9 $ 27.0 $ 96.4
Restructuring related charges . . . 19.5 3.1 3.7 26.3 — — — —
Vacation accrual adjustment .... — — — — (25.8) (8.9) (1.8) (36.5)
Impairment charges ......... 443.0 725.9 — 1,168.9 — — — —
Realized gain on derivative .... (9.8) — — (9.8) — — — —
Secondary offering costs ...... — — — — — — 2.0 2.0
Management transition costs . . . — — 5.2 5.2 — — 15.0 15.0
Total extraordinary, unusual or
non-recurring items ........ $ 551.1 $ 832.2 $ 23.5 $ 1,406.8 $ 38.7 $ (4.0) $ 42.2 $ 76.9