Hertz 2008 Annual Report Download - page 98

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS (Continued)
Results of Operations
In the following discussion, comparisons are made between the years ended December 31, 2008, 2007
and 2006. The following table sets forth for each of the periods indicated, the percentage of total
revenues represented by the various line items in our consolidated statements of operations (in millions
of dollars):
Percentage of Revenues
Years Ended December 31, Years Ended December 31,
2008 2007 2006 2008 2007 2006
Revenues:
Car rental ................. $6,730.4 $6,800.7 $6,273.6 79.0% 78.3% 77.9%
Equipment rental ............ 1,657.3 1,755.3 1,672.1 19.4 20.2 20.7
Other .................... 137.4 129.6 112.7 1.6 1.5 1.4
Total revenues ............ 8,525.1 8,685.6 8,058.4 100.0 100.0 100.0
Expenses:
Direct operating ............ 4,930.0 4,644.1 4,476.0 57.8 53.4 55.5
Depreciation of revenue earning
equipment ............... 2,194.2 2,003.4 1,757.2 25.8 23.1 21.8
Selling, general and
administrative ............. 769.6 775.9 723.9 9.0 8.9 9.0
Interest, net of interest income . . 845.2 875.4 900.7 9.9 10.1 11.2
Impairment charges .......... 1,168.9 — — 13.7 — —
Total expenses ............ 9,907.9 8,298.8 7,857.8 116.2 95.5 97.5
Income (loss) before income taxes
and minority interest ......... (1,382.8) 386.8 200.6 (16.2) 4.5 2.5
(Provision) benefit for taxes on
income ................... 196.9 (102.6) (68.0) 2.3 (1.2) (0.9)
Minority interest .............. (20.8) (19.7) (16.7) (0.2) (0.2) (0.2)
Net income (loss) ............. $(1,206.7) $ 264.5 $ 115.9 (14.1)% 3.1% 1.4%
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