Hertz 2009 Annual Report Download - page 75

ITEM 6. SELECTED FINANCIAL DATA (Continued)
minority interest) and also changed the description of line items, therefore, historical Net income (loss) is now known as Net
income (loss) attributable to The Hertz Corporation and Subsidiaries’ common stockholder.
(b) Includes fees and certain cost reimbursements from our licensees and revenues from our car leasing operations and third-
party claim management services.
(c) For the years ended December 31, 2009, 2008, 2007 and 2006, the Successor period ended December 31, 2005 and the
Predecessor period ended December 20, 2005, depreciation of revenue earning equipment was increased by $19.3 million,
$32.7 million and $0.6 million and reduced by $13.1 million, $1.2 million and $33.8 million, respectively, resulting from the net
effects of changing depreciation rates to reflect changes in the estimated residual value of revenue earning equipment. For
the years ended December 31, 2009, 2008, 2007 and 2006, the Successor period ended December 31, 2005 and the
Predecessor period ended December 20, 2005, depreciation of revenue earning equipment includes net losses of
$76.5 million, $83.1 million and $21.2 million and net gains of $35.9 million, $2.1 million and $68.3 million, respectively, from
the disposal of revenue earning equipment.
(d) For the year ended December 31, 2009, reflects interest income of $16.0 million and a gain of $48.5 million, net of transaction
costs, recorded in connection with the buyback of portions of our senior notes and senior subordinated notes. This amount
for all other years and periods reflected above consists of interest income.
(e) For the year ended December 31, 2008, we recorded non-cash impairment charges related to our goodwill, other intangible
assets and property and equipment.
(f) For the years ended December 31, 2009 and 2008, we established additional valuation allowances of $45.1 million and
$53.3 million, respectively, relating to the realization of deferred tax assets attributable to net operating losses, credits and
other temporary differences in various jurisdictions. Additionally, certain tax reserves were recorded and certain tax reserves
were released due to settlement for various uncertain tax positions in Federal, state and foreign jurisdictions. For the year
ended December 31, 2007, we reversed a valuation allowance of $9.1 million relating to the realization of deferred tax assets
attributable to net operating losses and other temporary differences in certain European countries. Additionally, certain tax
reserves were recorded for various uncertain tax positions in Federal, state and foreign jurisdictions. For the year ended
December 31, 2006, we established valuation allowances of $9.8 million relating to the realization of deferred tax assets
attributable to net operating losses and other temporary differences in certain European countries. Additionally, certain tax
reserves were recorded for certain federal and state uncertain tax positions. The Predecessor period ended December 20,
2005 includes the reversal of a valuation allowance on foreign tax credit carryforwards of $35.0 million (established in 2004)
and favorable foreign tax adjustments of $5.3 million relating to periods prior to 2005, partly offset by a $31.3 million provision
relating to the repatriation of foreign earnings.
(g) Amounts for the Successor period ended December 31, 2005 and the Predecessor period are computed based upon
229,500,000 shares of common stock outstanding immediately after the Acquisition applied to our historical net income
(loss) amounts. Amounts for the Successor years ended December 31, 2009, 2008, 2007 and 2006 are computed based on
the weighted average shares outstanding during the period applied to our historical net income (loss) amount.
(h) Substantially all of our revenue earning equipment, as well as certain related assets, are owned by special purpose entities,
or are subject to liens in favor of our lenders under the Senior ABL Facility, our asset-backed securities program, the
International Fleet Debt Facilities, the International ABS Fleet Financing Facility, the fleet financing facilities relating to our car
rental fleets in Hawaii, Kansas, Puerto Rico and St. Thomas, the U.S. Virgin Islands; Brazil; Canada; Belgium; and our
Capitalized leases. Substantially all our other assets in the United States are also subject to liens in favor of our lenders under
our Senior Credit Facilities, and substantially all our other assets outside the United States are (with certain limited
exceptions) subject to liens in favor of our lenders under the International Fleet Debt Facilities and International ABS Fleet
Financing Facility or (in the case of our Canadian HERC business) our Senior ABL Facility. None of such assets are available
to satisfy the claims of our general creditors. For a description of those facilities, see ‘‘Item 7—Management’s Discussion and
Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources.’’
(i) Amounts reflect the retrospective application of ASC 810-10, which changed the presentation of noncontrolling interest
(formerly minority interest) to be part of Total equity, therefore noncontrolling interest was added to the historical
Stockholder’s equity.
(j) Includes net proceeds from the sale of stock to employees and the initial public offering of approximately $1,284.5 million,
equity contributions totaling $2,295.0 million to Hertz Holdings from investment funds associated with or designated by the
Sponsors on or prior to December 21, 2005 and the payment of special cash dividends to our stockholders of approximately
$999.2 million on June 30, 2006 and approximately $260.3 million on November 21, 2006.
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