Hertz 2010 Annual Report Download - page 159

HERTZ GLOBAL HOLDINGS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Other Sponsor Relationships
In May and June 2009, Merrill Lynch & Co., Inc., or ‘‘ML,’’ an affiliate of one of our Sponsors, BAMLCP,
acted as an underwriter in the common stock follow-on public offering and in the public offering of the
Convertible Senior Notes, for which they received customary fees and expenses.
In May 2009 we entered into subscription agreements with investment funds affiliated with CD&R and
Carlyle to purchase an additional 32,101,182 shares of our common stock at a price of $6.23 per share
(the same price per share paid to us by the underwriters in the common stock public offering) with
proceeds to us of approximately $200.0 million. This closed on July 7, 2009 and the 32,101,182 shares of
our common stock were issued to CD&R and Carlyle affiliated investment funds on the same date.
Giving effect to these offerings, the Sponsors’ ownership percentage in us is approximately 51%.
To date, Bank of America Corporation, and certain of its affiliates, collectively, ‘‘B of A,’’ (which are
affiliates of BAMLCP and are stockholders of Hertz Holdings) has paid to us approximately $4.9 million
for ‘‘short-swing’’ profit liability resulting from principal trading activity in our common stock, which is
subject to recovery by us under Section 16 of the Securities Exchange Act of 1934, as amended. In the
event that B of A continues principal trading activity in our common stock, this amount may change.
Note 15—Earnings (Loss) Per Share
Basic earnings (loss) per share has been computed based upon the weighted average number of
common shares outstanding. Diluted earnings (loss) per share has been computed based upon the
weighted average number of common shares outstanding plus the effect of all potentially dilutive
common stock equivalents, except when the effect would be anti-dilutive.
The following table sets forth the computation of basic and diluted 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 ..................... $(48.0) $(126.0) $(1,206.7)
Denominator:
Weighted average shares used in basic and diluted computation . . 411.9 371.5 322.7
Loss per share attributable to Hertz Global Holdings, Inc. and
Subsidiaries’ common stockholders, basic .................. $(0.12) $ (0.34) $ (3.74)
Loss per share attributable to Hertz Global Holdings, Inc. and
Subsidiaries’ common stockholders, diluted ................. $(0.12) $ (0.34) $ (3.74)
Diluted loss per share computations for the years ended December 31, 2010, 2009 and 2008 excluded
the weighted-average impact of the assumed exercise of approximately 22.6 million, 21.7 million and
17.6 million shares, respectively, of stock options, RSUs and PSUs because such impact would be
antidilutive. Additionally, for the years ended December 31, 2010 and 2009, there was no impact to the
diluted loss per share computations associated with the Convertible Senior Notes, because such impact
would be antidilutive.
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