Hertz 2009 Annual Report Download - page 172

HERTZ GLOBAL HOLDINGS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Restructuring charges in our consolidated statement of operations can be summarized as follows (in
millions of dollars):
Years ended December 31,
2009 2008 2007
By Caption:
Direct operating ........................................ $ 65.4 $171.5 $41.2
Selling, general and administrative ........................... 41.4 44.6 55.2
Total ............................................... $106.8 $216.1 $96.4
Years ended December 31,
2009 2008 2007
By Segment:
Car rental ............................................. $ 58.7 $ 98.4 $64.5
Equipment rental ....................................... 38.2 103.2 4.9
Other reconciling items ................................... 9.9 14.5 27.0
Total ............................................... $106.8 $216.1 $96.4
Our consolidated balance sheet as of December 31, 2009 and 2008, included accruals relating to the
restructuring program of $29.7 million and $60.3 million, respectively. We expect to pay substantially all
of the remaining restructuring obligations by the end of the second quarter 2010. The following table sets
forth the activity affecting the accrual during the years ended December 31, 2009 and 2008 (in millions of
dollars):
Pension
Involuntary and Post
Termination Retirement Consultant
Benefits Expense Costs Other Total
Balance as of January 1, 2008 ....... $15.2 $ 0.1 $ 2.1 $ 0.8 $ 18.2
Charges incurred ............... 83.8 5.6 10.0 116.7 216.1
Cash payments ................ (51.7) —(12.4) (12.3) (76.4)
Other(1) ...................... (3.9) (5.2) 0.3 (88.8) (97.6)
Balance as of December 31, 2008 .... 43.4 0.5 — 16.4 60.3
Charges incurred ............... 44.1 0.7 7.6 54.4 106.8
Cash payments ................ (67.3) —(6.9) (25.1) (99.3)
Other(2) ...................... (0.6) (1.2) (0.3) (36.0) (38.1)
Balance as of December 31, 2009 .... $19.6 $ — $ 0.4 $ 9.7 $ 29.7
(1) Primarily consists of an increase of $83.7 million for the impairment of revenue earning equipment, $5.4 million for the
impairment of lease obligations, $5.1 million in pension and post retirement liabilities, $4.0 million for the impairment of fixed
assets and inventory, and $1.5 million in other benefits, partly offset by $2.2 million loss in foreign currency translation, which
have been included within ‘‘Accumulated other comprehensive income’’ on our consolidated balance sheet.
(2) Primarily consists of a decrease of $20.5 million for facility closures, $15.6 million for the impairment of revenue earning
equipment and other assets, $1.6 million for executive pension liability settlements and $0.8 million for contract termination
costs, partly offset by a $0.2 million gain in foreign currency translation.
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