Hertz 2010 Annual Report Download

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Table of contents

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  • Page 23
    ... Boulevard Park Ridge, New Jersey 07656-0713 (201) 307-2000 (Address, including ZIP Code, and telephone number, including area code, of registrant's principal executive offices) Securities registered pursuant to Section 12(b) of the Act: Title of each class Common Stock, Par Value $0.01 per share...

  • Page 24
    ... STATEMENTS OF CASH FLOWS ...NOTES TO CONSOLIDATED FINANCIAL STATEMENTS ...CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE ...CONTROLS AND PROCEDURES ...OTHER INFORMATION ...DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE ...EXECUTIVE COMPENSATION...

  • Page 25
    ...the cost of new vehicles and/or a decrease in the price at which we dispose of used vehicles either in the used vehicle market or under repurchase or guaranteed depreciation programs; • our ability to accurately estimate future levels of rental activity and adjust the size of our fleet accordingly...

  • Page 26
    ...in the existing, or the adoption of new laws, regulations, policies or other activities of governments, agencies and similar organizations where such actions may affect our operations, the cost thereof or applicable tax rates; • changes to our senior management team; • the effect of tangible and...

  • Page 27
    ... company-operated locations and where data regarding car rental concessionaire activity is available. We believe that we also maintain the second largest market share, by revenues, in the off-airport car rental market in the United States. In our equipment rental business segment, we rent equipment...

  • Page 28
    ... by 2014. Our Business Segments Our business consists of two reportable segments, car rental and equipment rental. General corporate expenses, certain interest expense (including net interest on corporate debt), as well as other business activities, such as third-party claim management services are...

  • Page 29
    ... United States 66.0% International 34.0% 22FEB201121470955 (1) Other Equipment 19.1% 22FEB201121471239 Car rental segment revenue includes fees and certain cost reimbursements from licensees. See Note 10 to the Notes to our consolidated financial statements included in this Annual Report under...

  • Page 30
    ... rentals from and to certain locations. In addition to car rentals and licensee fees, we generate revenues from reimbursements by customers of airport concession fees and vehicle licensing costs, fueling charges, and charges for ancillary customer products and services such as supplemental equipment...

  • Page 31
    ...next generation of electric vehicles available to the general public through our Connect by Hertz car sharing operation. We plan to add additional electric vehicles to our fleet over the coming months making electric vehicles available at locations in Manhattan, Washington D.C. and San Francisco and...

  • Page 32
    ... in the program. In addition to our airport locations, we operate off-airport locations offering car rental services to a variety of customers. Our off-airport rental customers include people wishing to rent cars closer to home for business or leisure purposes, as well as those needing to travel to...

  • Page 33
    ...leisure and business traveler customers and by increasing penetration of the insurance replacement market, of which we currently have a low market share. In the United States during the year ended December 31, 2010, approximately one-third of our rental revenues at off-airport locations were related...

  • Page 34
    ... companies and other groups whose members, participants and customers rent cars for either business or leisure purposes. A specialized sales force calls on companies with replacement rental needs, including insurance and leasing companies and car dealers. We also advertise our car rental offerings...

  • Page 35
    ...as a global distribution system, or ''GDS,'' to contact us and make the reservation. In major countries, including the United States and all other countries with company-operated locations, customers may also reserve cars for rental from us and our licensees worldwide through local, national or toll...

  • Page 36
    ... company-operated car sales locations dedicated exclusively to the sale of used cars from our rental fleet. During 2009, we launched Rent2Buy, an innovative program designed to sell used rental cars. The program was operating in 28 states as of December 31, 2010. Customers have an opportunity for...

  • Page 37
    ... engaged in the car rental business in the United States and in many other countries. Licensees generally pay fees based on a percentage of their revenues or the number of cars they operate. The operations of all licensees, including the purchase and ownership of vehicles, are financed independently...

  • Page 38
    ... equipment, material handling equipment, aerial and electrical equipment, air compressors, pumps, generators, small tools, compaction equipment and construction-related trucks. Ancillary to its rental business, HERC is also a dealer of certain brands of new equipment in the United States and Canada...

  • Page 39
    .... Productions can also rent equipment for use at special events such as lighting, generators and other machinery. In February 2010, HERC entered into a joint venture with Saudi Arabia based Dayim Holdings Company, Ltd. to set up equipment rental operations in the Kingdom of Saudi Arabia. The new...

  • Page 40
    ...in Italy and 19 months in China. HERC disposes of its used equipment through a variety of channels, including private sales to customers and other third parties, sales to wholesalers, brokered sales and auctions. Licensees HERC licenses the Hertz name to equipment rental businesses in five countries...

  • Page 41
    ... rental fleet, the quality of its sales force and its established national accounts program. Other Operations Our wholly-owned subsidiary, Hertz Claim Management Corporation, or ''HCM,'' provides claim administration services to us and, to a lesser extent, to third parties. These services include...

  • Page 42
    ... locations and the movement of rental equipment to and from customers' job sites. Risk Management Three types of generally insurable risks arise in our operations: • legal liability arising from the operation of our cars and on-road equipment (vehicle liability); • legal liability to members...

  • Page 43
    ... our car and equipment rental operations in Europe, we have established a wholly-owned insurance subsidiary, Probus, a direct writer of insurance domiciled in Ireland. In European countries with company-operated locations, we have purchased from Probus the vehicle liability insurance required by law...

  • Page 44
    ... vehicle liability on us. In both our domestic car rental operations and our company-operated international car rental operations in many countries, we offer optional products providing insurance coverage, or ''PAI/PEC'' coverage, to the renter and the renter's immediate family members traveling...

  • Page 45
    ... damage costs and the costs of stolen or unaccounted-for vehicles and equipment, along with other damage to our property, are charged to expense as incurred. Other Risks To manage other risks associated with our businesses, or to comply with applicable law, we purchase other types of insurance...

  • Page 46
    ..., and Liability Act of 1980 and comparable state superfund statutes. Environmental legislation and regulations and related administrative policies have changed rapidly in recent years, both in the United States and in other countries. There is a risk that governmental environmental requirements, or...

  • Page 47
    ... coverage that we offer. Some states (including California, New York, Nevada and Illinois) regulate the price at which we may sell loss or damage waivers, and many state insurance regulators have authority over the prices and terms of the optional insurance coverage we offer. See ''-Risk Management...

  • Page 48
    ... an Internet website (www.sec.gov) that contains reports, proxy and information statements and other information about issuers that file electronically with the SEC, including Hertz Holdings. You may also access, free of charge, our reports filed with the SEC (for example, our Annual Report on Form...

  • Page 49
    ... the primary competitive factors in the car and equipment rental markets and that the Internet has enabled cost-conscious customers, including business travelers, to more easily obtain the lowest rates available from rental companies. If we try to increase our pricing, our competitors, some of whom...

  • Page 50
    ... cases we can sell certain program cars shortly after having acquired them at a higher value than what we could for a similar non-program car at that time. With fewer program cars in our fleet, these benefits have diminished. Accordingly, we are now bearing increased risk relating to residual value...

  • Page 51
    ... increases in fuel prices, reduced fuel supplies or the imposition of mandatory allocations or rationing of fuel could negatively impact our car rental business by discouraging consumers from renting cars, changing the types of cars our customers rent from us or the other services they purchase 27

  • Page 52
    ... requirements and laws that are subject to change and are often much different than the domestic laws in the United States, including laws relating to taxes, automobile-related liability, insurance rates, insurance products, consumer privacy, data security, employment matters, cost and fee recovery...

  • Page 53
    ... acquisition or disposition or against any business we may acquire; (iv) changing our business profile in ways that could have unintended negative consequences; and (v) the failure to achieve anticipated synergies. If we enter into significant strategic transactions, the related accounting charges...

  • Page 54
    ..., death and property damage resulting from the use of the cars and equipment rented or sold by us, and for employment-related claims by our employees. Currently, we generally self-insure up to $10 million per occurrence in the United States and Europe for vehicle and general liability exposures, and...

  • Page 55
    ...''Item 1-Business-Risk Management'' in this Annual Report for further discussion regarding how changes in the regulation of insurance intermediaries may affect us. If customers decline to purchase supplemental liability insurance products from us as a result of any changes in these laws or otherwise...

  • Page 56
    ... also pursue acquisition opportunities and other corporate opportunities that may be complementary to our business and as a result, those opportunities may not be available to us. We are currently a ''controlled company'' within the meaning of the rules of the New York Stock Exchange (''NYSE'') and...

  • Page 57
    ... following: (i) sell certain of our assets; (ii) reduce the size of our rental fleet; (iii) reduce the percentage of program cars in our rental fleet; (iv) reduce or delay capital expenditures; (iv) obtain additional equity capital; (v) forgo business opportunities, including acquisitions and joint...

  • Page 58
    ... to maintain sufficient fleet levels to meet customer demands and could trigger cross-defaults under certain of our other financing arrangements. Any reduction in the value of the equipment rental fleet of HERC (which could occur due to a reduction in the size of the fleet or the value of the assets...

  • Page 59
    ... to Hertz Holdings, including state laws that require dividends to be paid only from surplus. If Hertz Holdings does not receive cash from its subsidiaries, then Hertz Holdings financial condition could be materially adversely affected. Our share price may decline if our Sponsors sell a large number...

  • Page 60
    ... Senior Notes encourages short selling by market participants. ITEM 1B. None. ITEM 2. PROPERTIES UNRESOLVED STAFF COMMENTS We operate car rental locations at or near airports and in central business districts and suburban areas of major cities in the United States, including Puerto Rico and...

  • Page 61
    ... subsidiaries. 1. Hertz Equipment Rental Corporation, or ''HERC,'' Loss Damage Waiver On August 15, 2006, Davis Landscape, Ltd., individually and on behalf of all others similarly situated, filed a complaint against HERC in the United States District Court for the District of New Jersey. In November...

  • Page 62
    ... Beteta. Originally filed in November of 2007, the action is pending in the United States District Court for the Southern District of California, and plaintiffs claim to represent a class of individuals or entities that purchased rental car services from a defendant at airports located in California...

  • Page 63
    ... damage on self-insured U.S. and international vehicles and equipment, as stated on our balance sheet, represents an estimate for both reported accident claims not yet paid and claims incurred but not yet reported. The related liabilities are recorded on a non-discounted basis. Reserve requirements...

  • Page 64
    ... Vice President, Advantage Rent A Car Senior Vice President, Corporate Affairs and Communications Senior Vice President and Chief Information Officer Senior Vice President, Finance and Corporate Controller Senior Vice President, Chief Marketing Officer Senior Vice President, Global Sales Senior...

  • Page 65
    ...November 2007, including Vice President and General Manager of Global Commercial Vehicle Systems and Specialty Markets, and Vice President, Global Program Management. Mr. Broome has served as the Senior Vice President, Corporate Affairs and Communications of Hertz Holdings and Hertz since March 2008...

  • Page 66
    ... Senior Vice President, Global Sales, of Hertz Holdings and Hertz since December 2007. Prior to joining Hertz Holdings and Hertz, Mr. Stuart held various senior level sales and marketing positions with General Electric Company from July 2000 through December 2007, including General Manager, Consumer...

  • Page 67
    ... index representing 41 stocks of companies that rent or lease various durable goods to the commercial and consumer market including cars and trucks, medical and industrial equipment, appliances, tools and other miscellaneous goods, including Hertz Holdings, ABG, Dollar Thrifty, RSC...

  • Page 68
    ... /3 1/ 10 HERTZ GLOBAL HOLDINGS, INC. RUSSELL 1000 INDEX RENTAL & LEASING SERVICES 22FEB201121470801 Equity Compensation Plan Information The following table summarizes the securities authorized for issuance pursuant to our equity compensation plans as of December 31, 2010: Number of securities...

  • Page 69
    ...of dollars, except per share data) 2010 Years ended December 31, 2009 2008 2007 2006 Statement of Operations Data Revenues: Car rental ...Equipment rental ...Other(a) ...Total revenues ...Expenses: Direct operating ...Depreciation of revenue earning equipment and lease charges(b) . Selling, general...

  • Page 70
    ...677.4 12,276.2 2,549.4 Includes fees and certain cost reimbursements from our licensees and revenues from our car leasing operations and thirdparty claim management services. For the years ended December 31, 2010, 2009, 2008, 2007 and 2006, depreciation of revenue earning equipment increased by $22...

  • Page 71
    ...-party claim management services). Our expenses primarily consist of: • Direct operating expenses (primarily wages and related benefits; commissions and concession fees paid to airport authorities, travel agents and others; facility, self-insurance and reservation costs; the cost of new equipment...

  • Page 72
    ...of costs, including those relating to site selection, lease negotiation, recruitment of employees, selection and development of managers, initial sales activities and integration of our systems with those of the companies who will reimburse the location's replacement renters for their rentals. A new...

  • Page 73
    ... approximately 250 off-airport locations and 22 branches in our U.S. equipment rental business. These initiatives impacted approximately 12,000 employees. For the years ended December 31, 2010, 2009 and 2008, our consolidated statement of operations includes restructuring charges relating to various...

  • Page 74
    ...for public liability and property damage on self-insured U.S. and international vehicles and equipment represents an estimate for both reported accident claims not yet paid, and claims incurred but not yet reported. The related liabilities are recorded on a non-discounted basis. Reserve requirements...

  • Page 75
    ... our reporting units, using our business and long-term strategic plans, revised to reflect the current economic conditions. Our weighted-average cost of capital used in the discounted cash flow model was calculated based upon the fair value of our debt and our stock price with a debt to equity ratio...

  • Page 76
    ... relationship, the changes in their fair value are recognized currently in earnings. The valuation methods used to mark these to market are either market quotes (for fuel swaps and foreign exchange instruments) or a discounted cash flow method (for interest rate swaps and interest rate caps). The...

  • Page 77
    ... FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued) Stock-Based Compensation The cost of employee services received in exchange for an award of equity instruments is based on the grant-date fair value of the award. That cost is recognized over the period during which the employee is required...

  • Page 78
    ... of dollars): Years Ended December 31, 2010 2009 2008 Percentage of Revenues Years Ended December 31, 2010 2009 2008 Revenues: Car rental ...Equipment rental ...Other ...Total revenues ...Expenses: Direct operating ...Depreciation of revenue earning equipment and lease charges . . Selling, general...

  • Page 79
    ... days represents the total number of days that vehicles were on rent in a given period. Car rental rate revenue consists of all revenue, net of discounts, associated with the rental of cars including charges for optional insurance products, but excluding revenue derived from fueling and concession...

  • Page 80
    ... pre-tax income ... Year Ended December 31, 2009 Equipment Car Rental Rental Income (loss) before income taxes Adjustments: Purchase accounting(1) ...Non-cash debt charges(2) ...Restructuring charges ...Restructuring related charges(3) . Third-party bankruptcy reserve(5) ...$190.1 38.2 131.7 58.7 42...

  • Page 81
    ... those countries outside the United States as to which take-out asset-based facilities have not been entered into. Represents incremental costs incurred directly supporting our business transformation initiatives. Such costs include transition costs incurred in connection with our business process...

  • Page 82
    ...tightening of credit markets for capital expansion, especially in the first half of 2010. Pricing also declined as industry fleet levels exceeded demand. Other Revenues from all other sources decreased 46.6%, primarily due to a decrease in revenues from our third-party claim management services. 58

  • Page 83
    ... fleet related expenses primarily related to disciplined cost management and reductions in equipment rental volume. The decreases in other direct operating expenses were partly offset by increases in commissions of $30.1 million, concession fees in our car rental operations of $27.4 million, charge...

  • Page 84
    ...in average acquisition cost of rental equipment operated during the period and higher residual values on the disposal of used equipment. Selling, General and Administrative Expenses Selling, general and administrative expenses increased 3.6%, due to increases in advertising, sales promotion expenses...

  • Page 85
    ... taxes in 2010, valuation allowances for losses in certain non-U.S. jurisdictions for which tax benefits cannot be realized and differences in foreign tax rates versus the U.S. Federal tax rate. See Note 8 to the Notes to our consolidated financial statements included in this Annual Report under the...

  • Page 86
    ... certain vehicles and disciplined cost management, partly offset by lower rental volume and pricing in our worldwide equipment rental operations. The impact of changes in exchange rates on net loss was mitigated by the fact that not only revenues but also most expenses outside of the United States...

  • Page 87
    ... was primarily related to a reduction in fleet levels as a result of worldwide rental volume demand which resulted in decreases in gasoline costs of $163.0 million, vehicle damage and maintenance costs of $94.4 million, self insurance expense of $37.9 million and equipment rental delivery costs of...

  • Page 88
    ... received in excess of book value on the disposal of used equipment and a $6.1 million net increase in depreciation in certain of our equipment rental operations resulting from changes in depreciation rates to reflect the estimated residual value of equipment. Selling, General and Administrative...

  • Page 89
    ... in connection with a value added tax reclaim in the United Kingdom. Impairment Charges Impairment charges represent non-cash impairment charges incurred during the fourth quarter of 2008 relating to our goodwill, other intangible assets and property and equipment. ADJUSTED PRE-TAX INCOME Car Rental...

  • Page 90
    ... and property and equipment in 2008 and strong cost management performance, partly offset by lower rental volume and pricing in our worldwide car and equipment rental operations, as well as the net effect of other contributing factors noted above. The impact of changes in exchange rates on the net...

  • Page 91
    ...-insurance regulatory reserve requirements. The decrease in restricted cash and cash equivalents of $157.6 million from December 31, 2009, primarily related to the timing of purchases and sales of revenue earning vehicles and also due to the temporary suspension of our U.S. car rental LKE program...

  • Page 92
    ... tables below set forth the revenue earning equipment and property and equipment capital expenditures and related disposal proceeds, on a cash basis consistent with our consolidated statements of cash flows, by quarter for 2010, 2009 and 2008 (in millions of dollars). Revenue Earning Equipment Net...

  • Page 93
    ...downturn. Financing Our primary liquidity needs include servicing of corporate and fleet related debt, the payment of operating expenses and purchases of rental vehicles and equipment to be used in our operations. Our primary sources of funding are operating revenue, cash received on the disposal of...

  • Page 94
    ...of December 31, 2010 consisted of cash and cash equivalents, unused commitments under our Senior ABL Facility and unused commitments under our fleet debt. For a description of these amounts, see Note 4 to the Notes to our consolidated financial statements included in this Annual Report under caption...

  • Page 95
    ... the next twelve months. For further information on our indebtedness, see Note 4 to the Notes to our consolidated financial statements included in this Annual Report under the caption ''Item 8-Financial Statements and Supplementary Data.'' A significant number of cars that we purchase are subject to...

  • Page 96
    ..., see Note 4 to the Notes to our consolidated financial statements included in this Annual Report under caption ''Item 8-Financial Statements and Supplementary Data.'' For a discussion of the risks associated with our significant indebtedness, see ''Item 1A-Risk Factors'' in this Annual Report. 72

  • Page 97
    ... December 31, 2010, the following facilities were available for our use (in millions of dollars): Availability Under Borrowing Base Limitation Remaining Capacity Corporate Debt Senior ABL Facility ...Total Corporate Debt ...Fleet Debt U.S. Fleet Variable Funding Notes U.S. Fleet Financing Facility...

  • Page 98
    ...a guaranteed minimum, and lease agreements for real estate, revenue earning equipment and office and computer equipment. Such obligations are reflected to the extent of their minimum non-cancelable terms. See Note 9 to the Notes to our consolidated financial statements included in this Annual Report...

  • Page 99
    ..., directors, officers, partners, members, employees, agents, representatives and controlling persons, against certain liabilities arising out of performance of a consulting agreement with Hertz Holdings and each of the Sponsors and certain other claims and liabilities, including liabilities arising...

  • Page 100
    ..., including vehicle liability, general liability and property damage insurable risks, see ''Item 1-Business-Risk Management'' in this Annual Report. Market Risks We are exposed to a variety of market risks, including the effects of changes in interest rates, foreign currency exchange rates and...

  • Page 101
    ... included in this Annual Report under the caption ''Item 8-Financial Statements and Supplementary Data.'' Other Risks We purchase unleaded gasoline and diesel fuel at prevailing market rates. In January 2009, we began a program to manage our exposure to changes in fuel prices through the use...

  • Page 102
    ... replacement asset is not purchased within this limited time period, taxable gain is recognized. Over the last few years, for strategic purposes, such as cash management and fleet reduction, we have recognized some taxable gains in the program. In 2009, the bankruptcy filing of an original equipment...

  • Page 103
    ... could increase the size of our potential withdrawal liability. For a discussion of the risks associated with our pension plans, see ''Item 1A-Risk Factors'' in this Annual Report. ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK See ''Item 7-Management's Discussion and Analysis...

  • Page 104
    ..., on the financial statement schedules, and on the Company's internal control over financial reporting based on our integrated audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and...

  • Page 105
    ...other compensation ...Other accrued liabilities ...Accrued taxes ...Debt ...Public liability and property damage ...Deferred taxes on income ...Total liabilities ...Commitments and contingencies Equity: Hertz Global Holdings Inc. and Subsidiaries stockholders' equity Preferred Stock, $0.01 par value...

  • Page 106
    HERTZ GLOBAL HOLDINGS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In Thousands of Dollars, except share and per share data) Years ended December 31, 2009 2008 2010 Revenues: Car rental ...Equipment rental ...Other ...Total revenues ...Expenses: Direct operating ...Depreciation of...

  • Page 107
    ... from sale of Convertible Senior Notes, net of tax of $46,204 ...Employee stock purchase plan ...Net settlement on vesting of restricted stock . Stock-based employee compensation charges, net of tax of $0 ...Exercise of stock options ...Common shares issued to Directors ...Phantom shares issued...

  • Page 108
    HERTZ GLOBAL HOLDINGS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Continued) (In Thousands of Dollars, except share data) Common Stock Shares Amount Additional Paid-In Capital Accumulated Other NonAccumulated Comprehensive controlling Deficit Income (Loss) Interest ...

  • Page 109
    ... of acquisition: Receivables ...Inventories, prepaid expenses and other assets ...Accounts payable ...Accrued liabilities ...Accrued taxes ...Public liability and property damage ...Cash flows from investing activities: Net change in restricted cash and cash equivalents . . Revenue earning equipment...

  • Page 110
    ... of the consolidated financial statements include depreciation of revenue earning equipment, reserves for litigation and other contingencies, accounting for income taxes and related uncertain tax positions, pension costs valuation, useful lives and impairment of long-lived tangible and intangible...

  • Page 111
    ...the period the revenue earning equipment is rented based on the terms of the rental or leasing contract. Revenue related to new equipment sales and consumables is recognized at the time of delivery to, or pick-up by, the customer and when collectability is reasonably assured. Fees from our licensees...

  • Page 112
    ... revenue earning equipment at the expected time of disposal. The residual values for rental vehicles are affected by many factors, including make, model and options, age, physical condition, mileage, sale location, time of the year and channel of disposition (e.g., auction, retail, dealer direct...

  • Page 113
    ...for public liability and property damage on self-insured U.S. and international vehicles and equipment represents an estimate for both reported accident claims not yet paid, and claims incurred but not yet reported. The related liabilities are recorded on a non-discounted basis. Reserve requirements...

  • Page 114
    ... the fair value of our reporting units using a discounted cash flow methodology. The cash flows represent management's most recent planning assumptions. These assumptions are based on a combination of industry outlooks, views on general economic conditions, our expected pricing plans and expected...

  • Page 115
    HERTZ GLOBAL HOLDINGS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Those intangible assets considered to have indefinite useful lives, including our trade name, are evaluated for impairment on an annual basis, by comparing the fair value of the intangible assets to ...

  • Page 116
    HERTZ GLOBAL HOLDINGS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Note 3-Goodwill and Other Intangible Assets The following summarizes the changes in our goodwill, by segment, for the periods presented (in millions of dollars): Car Rental Equipment Rental Total ...

  • Page 117
    HERTZ GLOBAL HOLDINGS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Other intangible assets, net, consisted of the following major classes (in millions of dollars): December 31, 2010 Gross Carrying Amount Accumulated Amortization Net Carrying Value Amortizable ...

  • Page 118
    ... in our domestic and international car rental operations, as well as approximately 20 locations associated with our acquisition of Advantage Rent A Car and one location related to an external acquisition done within our equipment rental operations. Total intangible assets acquired during the year...

  • Page 119
    HERTZ GLOBAL HOLDINGS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Note 4-Debt Our debt consists of the following (in millions of dollars): Average Interest Rate at December 31, 2010(1) ...2.02% N/A 8.26% 10.50% 7.45% 5.25% 4.74% Fixed or Floating Interest Rate ...

  • Page 120
    ... the benefit of the ABS Program) and the remainder is primarily to support self-insurance programs (including insurance policies with respect to which we have agreed to indemnify the policy issuers for any losses) as well as airport concession obligations in the United States, Canada and Europe. As...

  • Page 121
    ... will then be subject to financial covenants under such facility, including a specified leverage ratio and a specified fixed charge coverage ratio. Covenants in the Senior Term Facility restrict payment of cash dividends to any parent of Hertz, including Hertz Holdings, except (i) in an aggregate...

  • Page 122
    HERTZ GLOBAL HOLDINGS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) month period of $250 million or more, (c) (i) Hertz is in pro forma compliance with the specified leverage ratio and the specified fixed charge coverage ratio set forth in the Senior ABL Facility or (...

  • Page 123
    ..., including by failing to have the respective registration statement become effective by a specified date or failing to complete the respective exchange offer by a specified date, will result in Hertz incurring special interest on such notes at a per annum rate of 0.25% for the first 90 days of...

  • Page 124
    ... GLOBAL HOLDINGS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) restricted payments (including paying dividends, redeeming stock, making other distributions, loans or advances) to Hertz Holdings and Hertz, whether directly or indirectly. U.S. ABS Program Hertz Vehicle...

  • Page 125
    HERTZ GLOBAL HOLDINGS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Fleet Financing Facility is the primary fleet financing for our rental car operations in Hawaii, Kansas, Puerto Rico and St. Thomas, the U.S. Virgin Islands (''St. Thomas''). The obligations of each ...

  • Page 126
    ... in the owned rental car fleet used in our car rental operations in Australia and certain contractual rights related to such vehicles. In connection with the issuance of the Australian Securitization, an interest rate cap was purchased by the foreign subsidiaries. Concurrently, Hertz sold an...

  • Page 127
    HERTZ GLOBAL HOLDINGS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Borrowing Capacity and Availability As of December 31, 2010, the following facilities were available for our use (in millions of dollars): Availability Under Borrowing Base Limitation Remaining ...

  • Page 128
    ...Benefit Pension Plan, or the ''Hertz Retirement Plan,'' a cash balance plan. Under this qualified Hertz Retirement Plan, we pay the entire cost and employees are not required to contribute. Most of our international subsidiaries have defined benefit retirement plans or participate in various insured...

  • Page 129
    HERTZ GLOBAL HOLDINGS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) together with amounts included in our consolidated balance sheets and statements of operations (in millions of dollars): U.S. 2010 Pension Benefits Non-U.S. 2009 2010 2009 Postretirement Benefits ...

  • Page 130
    HERTZ GLOBAL HOLDINGS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Pension Benefits U.S. Non-U.S. 2010 2009 2010 2009 Postretirement Benefits (U.S.) 2010 2009 Amounts recognized in balance sheet: Liabilities ...$(183.8) $(220.5) $ (48.7) $ (51.8) $(19.0) $(13.7) Net...

  • Page 131
    HERTZ GLOBAL HOLDINGS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) The expected return on plan assets for each funded plan is based on expected future investment returns considering the target investment mix of plan assets. Pension Benefits U.S. Non-U.S. Years Years ...

  • Page 132
    HERTZ GLOBAL HOLDINGS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Changing the assumed health care cost trend rates by one percentage point is estimated to have the following effects (in millions of dollars): One Percentage Point Increase Decrease Effect on total ...

  • Page 133
    ... 3.5 0.8 Total fair value of pension plan assets ...Contributions $132.3 Our policy for funded plans is to contribute annually, at a minimum, amounts required by applicable laws, regulations and union agreements. From time to time we make contributions beyond those legally required. In 2010, we...

  • Page 134
    ..., incentive stock options, stock appreciation rights, performance awards (shares and units), restricted stock, restricted stock units and deferred stock units to key executives, employees and non-management directors. We also granted awards under the Hertz Global Holdings, Inc. Stock Incentive Plan...

  • Page 135
    HERTZ GLOBAL HOLDINGS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Impact on Results A summary of the total compensation expense and associated income tax benefits recognized under our Prior Plans and the Omnibus Plan, including the cost of stock options, restricted ...

  • Page 136
    ... 31, 2010 ... Additional information pertaining to option activity under the plans is as follows (in millions of dollars): Years ended December 31, 2010 2009 2008 Aggregate intrinsic value of stock options exercised . Cash received from the exercise of stock options ...Fair value of options that...

  • Page 137
    ... the Hertz Global Holdings, Inc. Employee Stock Purchase Plan, or the ''ESPP ,'' and the plan was approved by our stockholders on May 15, 2008. The ESPP is intended to be an ''employee stock purchase plan'' within the meaning of Section 423 of the Internal Revenue Code. The maximum number of shares...

  • Page 138
    ... future market conditions and their effect on residual values at the time of disposal. During 2010, 2009 and 2008, depreciation rates being used to compute the provision for depreciation of revenue earning equipment were adjusted on certain vehicles in our car rental operations to reflect changes in...

  • Page 139
    HERTZ GLOBAL HOLDINGS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Note 8-Taxes on Income The components of loss before income taxes for the periods were as follows (in millions of dollars): Years ended December 31, 2010 2009 2008 Domestic ...Foreign ...Total ... $(...

  • Page 140
    HERTZ GLOBAL HOLDINGS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) As of December 31, 2010, deferred tax assets of $1,111.5 million were recorded for unutilized U.S. Federal Net Operating Losses, or ''NOL,'' carry forwards of $3,175.7 million. The total Federal NOL ...

  • Page 141
    HERTZ GLOBAL HOLDINGS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) The significant items in the reconciliation of the statutory and effective income tax rates consisted of the following: Years ended December 31, 2010 2009 2008 Statutory Federal Tax Rate ...Foreign ...

  • Page 142
    ... of our concession agreements and real estate leases require us to pay or reimburse operating expenses, such as common area charges and real estate taxes, to pay concession fees above guaranteed minimums or additional rent based on a percentage of revenues or sales (as defined in those agreements...

  • Page 143
    ..., services, customers, and delivery methods. We have identified two reportable segments: rental of cars, crossovers and light trucks, or ''car rental,'' and rental of industrial, construction and material handling equipment, or ''equipment rental.'' Other reconciling items includes general corporate...

  • Page 144
    HERTZ GLOBAL HOLDINGS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Years ended December 31, 2010 2009 2008 Revenues Car rental ...Equipment rental ...Other reconciling items ...Total ...Adjusted pre-tax income Car rental ...Equipment rental ...Depreciation of revenue...

  • Page 145
    HERTZ GLOBAL HOLDINGS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) As of December 31, 2010 2009 Total assets at end of year Car rental ...Equipment rental ...Other reconciling items ...Total ...Revenue earning equipment, net, at end of year Car rental ...Equipment ...

  • Page 146
    HERTZ GLOBAL HOLDINGS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) As of December 31, 2010 2009 Revenue earning equipment, net, at end of year United States ...International ...Total ...Property and equipment, net, at end of year United States ...International ......

  • Page 147
    HERTZ GLOBAL HOLDINGS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (5) (6) Represents non-cash impairment charges related to our goodwill, other intangible assets and property and equipment. In 2010, represents the mark-to-market adjustment on our interest rate cap. ...

  • Page 148
    ... Beteta. Originally filed in November of 2007, the action is pending in the United States District Court for the Southern District of California, and plaintiffs claim to represent a class of individuals or entities that purchased rental car services from a defendant at airports located in California...

  • Page 149
    ... damage on self-insured U.S. and international vehicles and equipment, as stated on our balance sheet, represents an estimate for both reported accident claims not yet paid and claims incurred but not yet reported. The related liabilities are recorded on a non-discounted basis. Reserve requirements...

  • Page 150
    ..., directors, officers, partners, members, employees, agents, representatives and controlling persons, against certain liabilities arising out of performance of a consulting agreement with Hertz Holdings and each of the Sponsors and certain other claims and liabilities, including liabilities arising...

  • Page 151
    HERTZ GLOBAL HOLDINGS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) including liability for environmental indemnities, reflected in our consolidated balance sheets in ''Other accrued liabilities'' were $1.6 million and $2.0 million, respectively. The accrual generally...

  • Page 152
    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, 2010 2009 2008 By Type: Involuntary termination ...

  • Page 153
    ... to trade receivables are limited due to the large number of customers comprising our customer base, and their dispersion across different businesses and geographic areas. As of December 31, 2010, we had no significant concentration of credit risk. GAAP establishes a three-tier value hierarchy...

  • Page 154
    HERTZ GLOBAL HOLDINGS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Debt For borrowings with an initial maturity of 93 days or less, fair value approximates carrying value because of the short-term nature of these instruments. For all other debt, fair value is ...

  • Page 155
    ... fair values of the HVF Swaps were calculated using the income approach and applying observable market data (i.e. the 1-month LIBOR yield curve and credit default swap spreads). In conjunction with the refinanced Series 2009-1 Notes and the new Series 2010-2 Notes, HVF purchased an interest rate cap...

  • Page 156
    ..., including making fleet and equipment purchases and borrowing for working capital needs. Also, we have purchased foreign exchange options to manage exposure to fluctuations in foreign exchange rates for selected marketing programs. The effect of exchange rate changes on these financial instruments...

  • Page 157
    ... and up to six independent directors (subject to unanimous consent of the Sponsor Designees, for so long as Hertz Holdings remains a ''controlled company'' within the meaning of the New York Stock Exchange rules), subject to adjustment in the case that the applicable investment fund sells more than...

  • Page 158
    ...member of our Compensation Committee receives an additional annual cash fee of $10,000. For the years ended December 31, 2010, 2009 and 2008, we recognized $1.8 million, $1.6 million and $1.8 million, respectively, of expense relating to the Director Compensation Policy in our consolidated statement...

  • Page 159
    ... loss per share (in millions of dollars, except per share amounts): Years ended December 31, 2010 2009 2008 Basic and diluted loss per share: Numerator: Net loss attributable to Hertz Global Holdings, Inc. and Subsidiaries' common stockholders ...Denominator: Weighted average shares used in basic...

  • Page 160
    ...08) In January 2011, Gerald A. Plescia, President, Hertz Equipment Rental Corporation, or ''HERC,'' retired from the Company. Mark P . Frissora, our Chairman and Chief Executive Officer is assuming the temporary senior management responsibility for HERC until a successor is named. In January 2011...

  • Page 161
    SCHEDULE I CONDENSED FINANCIAL INFORMATION OF REGISTRANT HERTZ GLOBAL HOLDINGS, INC. PARENT COMPANY BALANCE SHEETS (In Thousands of Dollars) December 31, 2010 2009 ASSETS Cash and cash equivalents ...Accounts receivable from Hertz affiliate ...Taxes receivable ...Prepaid expenses and other assets ...

  • Page 162
    SCHEDULE I (Continued) HERTZ GLOBAL HOLDINGS, INC. PARENT COMPANY STATEMENTS OF OPERATIONS (In Thousands of Dollars) Years ended December 31, 2009 2008 2010 Revenues ...Expenses: Selling, general and administrative ...Interest expense, net of interest income ...Total expenses (income) ...Other ...

  • Page 163
    ...) HERTZ GLOBAL HOLDINGS, INC. PARENT COMPANY STATEMENTS OF STOCKHOLDERS' EQUITY (In Thousands of Dollars, except share data) Retained Accumulated Additional Earnings Other Total Common Stock Paid-In (Accumulated Comprehensive Stockholders' Shares Amount Capital Deficit) Income (Loss) Equity Balance...

  • Page 164
    ... I (Continued) HERTZ GLOBAL HOLDINGS, INC. PARENT COMPANY STATEMENTS OF CASH FLOWS (In Thousands of Dollars) Years ended December 31, 2009 2008 2010 Cash flows from operating activities: Net loss ...Adjustments to reconcile net loss to net cash used in operating activities: Amortization and write...

  • Page 165
    ..., the investments of Hertz Holdings in its consolidated subsidiaries are presented under the equity method of accounting. These parent-only financial statements should be read in conjunction with the consolidated financial statements of Hertz Holdings included in this Annual Report under the caption...

  • Page 166
    SCHEDULE I (Continued) HERTZ GLOBAL HOLDINGS, INC. NOTES TO PARENT COMPANY FINANCIAL STATEMENTS (Continued) combination of cash on hand and proceeds from the repayment of an inter-company loan from Hertz, and dividends received Hertz Holdings subsidiaries. In the future, if our cash on hand and ...

  • Page 167
    ... VALUATION AND QUALIFYING ACCOUNTS HERTZ GLOBAL HOLDINGS, INC. AND SUBSIDIARIES (In Thousands of Dollars) Additions Balance at Beginning of Charged to Translation Period Expense Adjustments Deductions Balance at End of Period Allowance for doubtful accounts: Year ended December 31, 2010 Year ended...

  • Page 168
    ... limitation, controls and procedures designed to ensure that information required to be disclosed in company reports filed under the Exchange Act is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions...

  • Page 169
    ... a member of the Audit Committee is a ''financial expert'' as that term is defined under Item 407(d)(5) of Regulation S-K is set forth under the caption ''Corporate Governance and General Information Concerning the Board of Directors and its Committees'' of our 2011 Proxy Statement. Such information...

  • Page 170
    ...: Hertz Global Holdings, Inc. and Subsidiaries- Report of Independent Registered Public Accounting Firm . . Consolidated Balance Sheets ...Consolidated Statements of Operations ...Consolidated Statements of Changes in Equity ...Consolidated Statements of Cash Flows ...Notes to Consolidated Financial...

  • Page 171
    ... Park Ridge, and state of New Jersey, on the 25th day of February, 2011. HERTZ GLOBAL HOLDINGS, INC. (Registrant) By: /s/ ELYSE DOUGLAS Name: Elyse Douglas Title: Executive Vice President and Chief Financial Officer Pursuant to the requirements of the Securities Exchange Act of 1934, this report...

  • Page 172
    Signature Title /s/ ANGEL L. MORALES Angel L. Morales /s/ GREGORY S. LEDFORD Gregory S. Ledford /s/ NATHAN K. SLEEPER Nathan K. Sleeper /s/ DAVID H. WASSERMAN David H. Wasserman /s/ HENRY C. WOLF Henry C. Wolf Director Director Director Director Director 148

  • Page 173
    ... of Hertz Global Holdings, Inc., as filed on November 14, 2007). Indenture, dated as of September 30, 2010, among The Hertz Corporation, as Issuer, the Subsidiary Guarantors from time to time parties thereto, and Wells Fargo Bank, National Association, as Trustee, relating to the 7.50% Senior Notes...

  • Page 174
    ..., Purchase and Sale Agreement, dated as of September 18, 2009, among Hertz General Interest LLC, Hertz Vehicle Financing LLC and The Hertz Corporation, as Lessee and Servicer (Incorporated by reference to Exhibit 4.9.8 to the Quarterly Report on Form 10-Q of Hertz Global Holdings, Inc., as filed on...

  • Page 175
    ... Purchase Agreement, dated as of December 16, 2010, among Hertz Vehicle Financing LLC, The Hertz Corporation, as Administrator, Certain Conduit Investors, each as a Conduit Investor, Certain Financial Institutions, each as a Committed Note Purchaser, Certain Funding Agents, and Deutsche Bank AG, New...

  • Page 176
    ... Purchase Agreement, dated as of December 16, 2010, among Hertz Vehicle Financing LLC, The Hertz Corporation, as Administrator, Certain Conduit Investors, each as a Conduit Investor, Certain Financial Institutions, each as a Committed Note Purchaser, Certain Funding Agents, and Deutsche Bank AG, New...

  • Page 177
    ...as filed on November 9, 2010). Credit Agreement, dated as of December 21, 2005, between Hertz Equipment Rental Corporation, The Hertz Corporation, the Canadian Borrowers parties thereto, the several lenders from time to time parties thereto, Deutsche Bank AG, New York Branch, as Administrative Agent...

  • Page 178
    ... Annual Report on Form 10-K of Hertz Global Holdings, Inc., as filed on March 30, 2007). Third Amendment to Credit Agreement, dated as of May 23, 2007, among Hertz Equipment Rental Corporation, The Hertz Corporation, Matthews Equipment Limited, Western Shut-Down (1995) Limited, Deutsche Bank AG, New...

  • Page 179
    ... GE Fleet Services, as Administrative Agent and Collateral Agent, relating to the U.S. Fleet Financing Facility (Incorporated by reference to Exhibit 4.13.2 to the Annual Report on Form 10-K of Hertz Global Holdings, Inc., as filed on March 30, 2007). Hertz Global Holdings, Inc. Stock Incentive Plan...

  • Page 180
    ... Current Report on Form 8-K of Hertz Global Holdings, Inc., as filed on June 1, 2010).†The Hertz Corporation Key Officer Postretirement Assigned Car Benefit Plan (Incorporated by reference to Exhibit 10.11 to Amendment No. 1 to the Registration Statement on Form S-1 of The Hertz Corporation (File...

  • Page 181
    ... Report on Form 10-Q of Hertz Global Holdings, Inc., as filed on August 6, 2010). Amended and Restated Indemnification Agreement, dated as of December 21, 2005, between The Hertz Corporation, Hertz Vehicles LLC, Hertz Funding Corp., Hertz General Interest LLC, and Hertz Vehicle Financing LLC...

  • Page 182
    ... Private Equity Fund, L.P ., Merrill Lynch Ventures L.P . 2001, ML Hertz Co-Investor, L.P . and CMC-Hertz Partners, L.P . (Incorporated by reference to Exhibit 4.10 to the Annual Report on Form 10-K of Hertz Global Holdings, Inc., as filed on March 30, 2007). Registration Rights Agreement, dated...

  • Page 183
    ... Public Accounting Firm. Certification of Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a). Certification of Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a). Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350. Certification of Chief Financial Officer...

  • Page 184
    ...GLOBAL HOLDINGS, INC. AND SUBSIDIARIES COMPUTATION OF CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES (UNAUDITED) (In Millions of Dollars Except Ratios) 2010 Years ended December 31, 2009 2008 2007 2006 Income (loss) before income taxes . . Interest expense ...Portion of rent estimated to represent...

  • Page 185
    ... OF CHIEF EXECUTIVE OFFICER PURSUANT TO RULE 13a-14(a)/15d-14(a) I, Mark P . Frissora, certify that: 1. 2. I have reviewed this Annual Report on Form 10-K for the year ended December 31, 2010 of Hertz Global Holdings, Inc.; Based on my knowledge, this report does not contain any untrue statement of...

  • Page 186
    ... OF CHIEF FINANCIAL OFFICER PURSUANT TO RULE 13a-14(a)/15d-14(a) I, Elyse Douglas, certify that: 1. 2. I have reviewed this Annual Report on Form 10-K for the year ended December 31, 2010 of Hertz Global Holdings, Inc.; Based on my knowledge, this report does not contain any untrue statement of...

  • Page 187
    ... In connection with the Annual Report of Hertz Global Holdings, Inc. (the ''Company'') on Form 10-K for the period ending December 31, 2010 as filed with the Securities and Exchange Commission on the date hereof (the ''Report''), I, Mark P . Frissora, Chief Executive Officer of the Company, certify...

  • Page 188
    ... 1350 In connection with the Annual Report of Hertz Global Holdings, Inc. (the ''Company'') on Form 10-K for the period ending December 31, 2010 as filed with the Securities and Exchange Commission on the date hereof (the ''Report''), I, Elyse Douglas, Chief Financial Officer of the Company, certify...

  • Page 189
    ... in the section entitled ''Introductory Note'' in our Annual Report on Form 10-K, and our subsequent reports filed with the SEC. We caution you not to place undue reliance on the forward-looking statements. All such statements speak only as of the date made and, except as required by law, we do not...

  • Page 190
    ... rental fleet receivables less change in car rental fleet financing. Net Corporate Debt Net corporate debt is calculated as total debt excluding fleet debt less cash and equivalents and corporate restricted cash. Corporate debt consists of senior notes issued prior to the acquisition of all of Hertz...

  • Page 191
    ... cash and equivalents are restricted for the purchase of revenue earning vehicles and other specified uses under our Fleet Debt facilities, our like-kind exchange programs and to satisfy certain of our self insurance regulatory reserve requirements. Corporate restricted cash is calculated as total...

  • Page 192
    ... Global Holdings, Inc. and Subsidiaries' common stockholders ... $ (48.0) $ 260.4 $ 212.4 $ (126.0) $ 242.6 $ 116.6 Year Ended December 31, 2008 As As Reported Adjustments Adjusted Total revenues ...Expenses: Direct operating ...Depreciation of revenue earning equipment and lease charges...

  • Page 193
    ...tax rate (34% for 2010, 2009 and 2008 and 35% for 2007 and 2006). Represents a gain (net of transaction costs) recorded in connection with the buyback of portions of our Senior Notes and Senior Subordinated Notes during the year ended December 31, 2009. Represents non-cash impairment charges related...

  • Page 194
    ... Other Car Equipment Reconciling Rental Rental Items Total Income (loss) before income taxes Adjustments: Purchase accounting(a) ...Non-cash debt charges(b) ...Restructuring charges(c) ...Restructuring related charges(c) . Derivative (gains) losses(c) ...Acquisition related costs(d) ...Third party...

  • Page 195
    ... Other Car Equipment Reconciling Rental Rental Items Total Income (loss) before income taxes Adjustments: Purchase accounting(a) ...Non-cash debt charges(b) ...Derivative gains(c) ...Management transition costs(e) . . Stock purchase compensation charge(e) ...Sponsor termination fee(e) ...Unrealized...

  • Page 196
    ..., net ...Changes in working capital . . Changes in other assets and liabilities ...Corporate net cash interest . . Corporate cash taxes ...Equipment rental fleet growth capital expenditures ...Car rental net fleet equity requirement ... Levered after-tax cash flow after fleet growth(c) ...

  • Page 197
    ... Car Equipment Reconciling Rental Rental Items 34.3 2.6 $36.9 Non-Cash Expenses and Charges Total Total $130.1 34.3 2.6 $167.0 Non-cash amortization and write-off of debt costs included in car rental fleet interest . . $132.5 Non-cash stock-based employee compensation charges ...2.7 Derivative...

  • Page 198
    ... 31, 2010 Net cash provided by operating activities . . Amortization of debt costs ...Gain on extinguishment of debt ...Provision for losses on doubtful accounts Derivative gains (losses) ...Gain on sale of property and equipment . Amortization of cash flow hedges ...Stock-based compensation charges...

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