Hertz 2009 Annual Report Download - page 171

HERTZ GLOBAL HOLDINGS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
European car rental businesses incurred charges mainly for facility lease obligations related to
previously announced off-airport location closures that were completed during the quarters. In the first
quarter of 2009, our European car rental business also eliminated certain specialty rental equipment as a
future cost reduction initiative and incurred related lease termination costs. The first and second quarter
2009 restructuring charges included employee termination liabilities covering approximately 500 and
600 employees, respectively.
During the third and fourth quarters of 2009, our equipment rental business incurred charges mainly for
costs related to facility lease obligations for previously closed branches and additional losses on the
disposal of remaining surplus equipment related to these locations. Our European car rental business
incurred employee termination benefits costs associated with the migration of work to the European
shared service center and the creation of two regions within Europe to manage our European country
operations. Additionally, in the third quarter of 2009, our European car rental business recognized a loss
on sale of a building due to reduced office space needs resulting from headcount reductions. The third
and fourth quarter 2009 restructuring charges included employee termination liabilities covering
approximately 300 and 250 employees, respectively.
For the year ended December 31, 2009, our consolidated statement of operations includes restructuring
charges relating to the initiatives discussed above of $106.8 million, which is composed of $44.1 million
of termination benefits, $15.6 million in asset impairment charges, $29.8 million in facility closure and
lease obligation costs, $7.6 million in consulting costs, $4.1 million in relocation costs, $1.7 million in
contract termination costs, $0.7 million in pension settlement losses and $3.2 million of other
restructuring charges. The after-tax effect of the restructuring charges reduced diluted earnings per
share by $0.23 for the year ended December 31, 2009.
For the year ended December 31, 2008, our consolidated statement of operations includes restructuring
charges relating to the initiatives discussed above of $216.1 million, which is composed of $83.8 million
of termination benefits, $89.1 million in asset impairment charges, $14.1 million in facility closure and
lease obligation costs, $4.0 million in facility fixed asset and inventory impairment costs, $10.0 million in
consulting costs, $5.6 million in pension settlement losses and $9.5 million of other restructuring
charges. The after-tax effect of the restructuring charges reduced diluted earnings per share by $0.48 for
the year ended December 31, 2008.
For the year ended December 31, 2007, our consolidated statement of operations includes restructuring
charges relating to the initiatives discussed above of $96.4 million, which is composed of $65.2 million of
involuntary termination benefits, $21.7 million in consulting costs, a net gain of $0.4 million related to
pension and post employment benefits and other charges of $9.9 million. The after-tax effect of the
restructuring charges reduced diluted earnings per share by $0.22 for the year ended December 31,
2007.
Additional efficiency and cost saving initiatives are being developed in 2010. However, we presently do
not have firm plans or estimates of any related expenses.
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