Hertz 2009 Annual Report Download - page 227

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Non-GAAP Reconciliations (Continued)
(In millions, except per share amounts)
Adjusted Pre-Tax Income (Loss) and Adjusted Net Income (Loss)
Year Ended December 31, 2009 Year Ended December 31, 2008
Other Other
Car Equipment Reconciling Car Equipment Reconciling
Rental Rental Items Total Rental Rental Items Total
Income (loss) before income
taxes ................. $190.1 $(20.7) $(340.4) $(171.0) $(385.3) $(629.3) $(368.2) $(1,382.8)
Adjustments:
Purchase accounting (a) .... 38.2 49.6 2.5 90.3 40.2 58.8 2.0 101.0
Non-cash debt charges (b) . . . 131.7 9.0 31.2 171.9 71.1 10.3 18.8 100.2
Restructuring charges (c) .... 58.7 38.2 9.9 106.8 98.4 103.2 14.6 216.2
Restructuring related
charges (c) ........... 42.3 0.3 3.9 46.5 19.5 3.1 3.7 26.3
Derivative (gains) losses (c) . . —— (2.4) (2.4) 2.2 ——2.2
Third party banktruptcy
reserve (d) ............ 4.3 ——4.3 —— — —
Management transition
costs (d) ............. —— 1.0 1.0 —— 5.2 5.2
Gain on debt buyback (e) . . . —— (48.5) (48.5) —— — —
Impairment charges (f) ..... —— — —443.0 725.9 — 1,168.9
Adjusted pre-tax income (loss) . . 465.3 76.4 (342.8) 198.9 289.1 272.0 (323.9) 237.2
Assumed (provision) benefit for
income taxes of 34% ....... (158.2) (26.0) 116.6 (67.6) (98.3) (92.5) 110.1 (80.7)
Noncontrolling interest ....... —— (14.7) (14.7) ——(20.8) (20.8)
Adjusted net income (loss) .... $307.1 $ 50.4 $(240.9) $ 116.6 $ 190.8 $ 179.5 $(234.6) $ 135.7
Adjusted diluted number of
shares outstanding ........ 407.7 325.5
Adjusted diluted earnings per
share ................ $ 0.29 $ 0.42
Year Ended December 31, 2007 Year Ended December 31, 2006
Other Other
Car Equipment Reconciling Car Equipment Reconciling
Rental Rental Items Total Rental Rental Items Total
Income (loss) before income taxes $ 468.6 $ 308.5 $(390.3) $ 386.8 $ 373.5 $ 269.5 $(442.4) $ 200.6
Adjustments:
Purchase accounting (a) ..... 35.3 58.1 1.8 95.2 23.8 64.7 1.9 90.4
Non-cash debt charges (b) .... 66.5 11.2 28.2 105.9 75.0 11.3 13.2 99.5
Restructuring charges (c) ..... 64.5 4.9 27.0 96.4 —— — —
Vacation accrual adjustment (c) . (25.8) (8.9) (1.8) (36.5) —— — —
Derivative gains (c) ......... (4.1) ——(4.1) —— (1.0) (1.0)
Management transition costs (d) —— 15.0 15.0 —— 9.8 9.8
Secondary offering costs (d) . . . —— 2.0 2.0 —— — —
Stock purchase compensation
charge (d) ............. —— — ——— 13.3 13.3
Sponsor termination fee (d) .... —— — ——— 15.0 15.0
Unrealized transaction loss on
Euro-denominated debt (d) (g) —— — ——— 19.2 19.2
Interest on HGH debt ....... —— — ——— 39.9 39.9
Adjusted pre-tax income (loss) . . . 605.0 373.8 (318.1) 660.7 472.3 345.5 (331.1) 486.7
Assumed (provision) benefit for
income taxes of 35% ........ (211.7) (130.8) 111.3 (231.2) (165.3) (120.9) 115.9 (170.3)
Noncontrolling interest ........ ——(19.7) (19.7) ——(16.7) (16.7)
Adjusted net income (loss) ..... $393.3 $ 243.0 $(226.5) $ 409.8 $ 307.0 $ 224.6 $(231.9) $ 299.7
Adjusted diluted number of shares
outstanding .............. 324.8 324.8
Adjusted diluted earnings per
share .................. $ 1.26 $ 0.92