Hertz 2009 Annual Report Download - page 129

HERTZ GLOBAL HOLDINGS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Other intangible assets, net, consisted of the following major classes (in millions of dollars):
December 31, 2009
Gross Net
Carrying Accumulated Carrying
Amount Amortization Value
Amortizable intangible assets:
Customer-related ................................. $ 600.6 $(246.5) $ 354.1
Other ......................................... 50.0 (12.0) 38.0
Total ........................................ 650.6 (258.5) 392.1
Indefinite-lived intangible assets:
Trade name ..................................... 2,190.0 — 2,190.0
Other ......................................... 15.6 — 15.6
Total ........................................ 2,205.6 — 2,205.6
Total other intangible assets, net .................. $2,856.2 $(258.5) $2,597.7
December 31, 2008
Gross Net
Carrying Accumulated Impairment Carrying
Amount Amortization Charge Value
Amortizable intangible assets:
Customer-related ........................ $ 620.2 $(187.9) $ (17.0) $ 415.3
Other ................................ 10.9 (4.5) — 6.4
Total ............................... 631.1 (192.4) (17.0) 421.7
Indefinite-lived intangible assets:
Trade name ............................ 2,624.0 — (434.0) 2,190.0
Other ................................ 9.9 ——9.9
Total ............................... 2,633.9 — (434.0) 2,199.9
Total other intangible assets, net .......... $3,265.0 $(192.4) $(451.0) $2,621.6
In 2008, we recorded non-cash impairment charges of $694.9 million related to our goodwill and $451.0
related to other intangible assets. The car rental and equipment rental segments recorded non-cash
impairment charges related to their goodwill of $43.0 million and $651.9 million, respectively, and to their
other intangible assets of $377.0 million and $74.0 million, respectively. These impairment charges were
a result of a decline in the economy and fourth quarter 2008 operating results, and a significant decline in
both the fair value of debt and our stock price.
Amortization of other intangible assets for the years ended December 31, 2009, 2008 and 2007, was
$66.1 million, $66.3 million and $62.6 million, respectively. Based on our amortizable intangible assets
as of December 31, 2009, we expect amortization expense to range from $59.4 million to $65.1 million for
each of the next five fiscal years.
During the year ended December 31, 2009, we added 32 locations by acquiring former franchisees in
our domestic and international car rental operations, as well as approximately 20 locations associated
with our acquisition of Advantage Rent A Car and one location related to an external acquisition done
within our equipment rental operations. Total cash paid for intangible assets during the year ended
December 31, 2009 was $44.7 million, of this amount, $39.1 million was allocated to amortizable
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