Hertz 2009 Annual Report Download - page 86

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ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS (Continued)
The following table reconciles our car rental revenue to our rental rate revenue and rental rate revenue per transaction day
(based on December 31, 2008 foreign exchange rates) for the years ended December 31, 2009, 2008 and 2007 (in millions of
dollars, except as noted):
Years Ended December 31,
2009 2008 2007
Car rental revenue per statement of operations ..................... $5,872.9 $6,730.4 $6,800.7
Non-rental rate revenue ................................... (802.0) (988.0) (956.1)
Foreign currency adjustment ................................ (51.2) (203.6) (96.2)
Rental rate revenue ...................................... $5,019.7 $5,538.8 $5,748.4
Transaction days (in thousands) .............................. 117,601 127,890 129,355
Rental rate revenue per transaction day (in whole dollars) .............. $ 42.68 $ 43.31 $ 44.44
(c) Adjusted pre-tax income is calculated as income (loss) before income taxes and noncontrolling interest plus non-cash
purchase accounting charges, non-cash debt charges and certain one-time charges and non-operational items. Adjusted
pre-tax income is the measure utilized by management in making decisions about allocating resources to segments and
measuring their performance. Management believes this measure best reflects the financial results from ongoing operations.
The following table reconciles income (loss) before income taxes and noncontrolling interest by segment to adjusted pre-tax
income by segment for the years ended December 31, 2009, 2008 and 2007 (in millions of dollars):
Year Ended December 31, 2009
Car Equipment
Rental Rental
Income (loss) before income taxes and noncontrolling interest ........ $190.1 $(20.7)
Adjustments:
Purchase accounting(1) ................................ 38.2 49.6
Non-cash debt charges(2) .............................. 131.7 9.0
Restructuring charges ................................ 58.7 38.2
Restructuring related charges(3) .......................... 42.3 0.3
Third-party bankruptcy reserve(4) .......................... 4.3 —
Adjusted pre-tax income ................................ $465.3 $ 76.4
Year Ended December 31, 2008
Car Equipment
Rental Rental
Loss before income taxes and noncontrolling interest .............. $(385.3) $(629.3)
Adjustments:
Purchase accounting(1) ................................ 40.2 58.8
Non-cash debt charges(2) .............................. 71.1 10.3
Derivative losses(5) .................................. 2.2 —
Restructuring charges ................................ 98.4 103.2
Restructuring related charges(3) .......................... 19.5 3.1
Impairment charges(6) ................................ 443.0 725.9
Adjusted pre-tax income ................................ $289.1 $ 272.0
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