Hertz 2009 Annual Report Download - page 163

HERTZ GLOBAL HOLDINGS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
construction and material handling equipment, or ‘‘equipment rental.’’ Other reconciling items includes
general corporate assets and expenses, certain interest expense (including net interest on corporate
debt), as well as other business activities, such as our third party claim management services.
Adjusted pre-tax income (loss) is the measure utilized by management in making decisions about
allocating resources to segments and measuring their performance. We believe this measure best
reflects the financial results from ongoing operations. Adjusted pre-tax income (loss) is calculated as
income (loss) before income taxes and noncontrolling interest plus other reconciling items, non-cash
purchase accounting charges, non-cash debt charges relating to the amortization of deferred debt
financing costs and debt discounts and certain one-time charges and non-operational items. The
contribution of our reportable segments for the years ended December 31, 2009, 2008 and 2007 are
summarized below (in millions of dollars).
Years ended December 31,
2009 2008 2007
Revenues
Car rental ................................................... $5,979.0 $ 6,858.2 $ 6,920.6
Equipment rental .............................................. 1,110.9 1,658.1 1,755.9
Other reconciling items ........................................... 11.6 8.8 9.1
Total ..................................................... $7,101.5 $ 8,525.1 $ 8,685.6
Adjusted pre-tax income(a)
Car rental ................................................... $ 465.3 $ 289.1 $ 605.0
Equipment rental .............................................. $ 76.4 $ 272.0 $ 373.8
Depreciation of revenue earning equipment
Car rental ................................................... $1,614.2 $ 1,843.8 $ 1,695.4
Equipment rental .............................................. 317.2 350.4 308.0
Total ..................................................... $1,931.4 $ 2,194.2 $ 2,003.4
Depreciation of property and equipment
Car rental ................................................... $ 115.9 $ 126.0 $ 130.8
Equipment rental .............................................. 37.6 40.8 40.4
Other reconciling items ........................................... 6.1 6.0 5.9
Total ..................................................... $ 159.6 $ 172.8 $ 177.1
Amortization of other intangible assets
Car rental ................................................... $ 32.5 $ 33.9 $ 30.4
Equipment rental .............................................. 32.8 32.4 32.2
Other reconciling items ........................................... 0.7 ——
Total ..................................................... $ 66.0 $ 66.3 $ 62.6
Interest expense
Car rental ................................................... $ 316.1 $ 452.4 $ 442.5
Equipment rental .............................................. 53.3 110.8 147.4
Other reconciling items ........................................... 310.9 306.8 326.8
Total ..................................................... $ 680.3 $ 870.0 $ 916.7
Revenue earning equipment and property and equipment
Car rental
Expenditures ................................................ $7,533.1 $ 9,978.5 $10,601.1
Proceeds from disposals ........................................ (5,858.3) (8,286.6) (9,177.6)
Net expenditures ............................................ $1,674.8 $ 1,691.9 $ 1,423.5
Equipment rental
Expenditures ................................................ $ 94.4 $ 356.7 $ 743.9
Proceeds from disposals ........................................ (190.3) (293.1) (230.0)
Net expenditures (proceeds) ..................................... $ (95.9) $ 63.6 $ 513.9
Other reconciling items
Expenditures ................................................ $ 0.5 $ 9.6 $ 2.7
Proceeds from disposals ........................................ —— —
Net expenditures ............................................ $ 0.5 $ 9.6 $ 2.7
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