Hertz 2010 Annual Report Download - page 193

Non-GAAP Reconciliations (Continued)
(In millions)
Condensed Consolidated Statements of Operations (Continued)
Year Ended December 31, 2006
As As
Reported Adjustments Adjusted
Total revenues ................. $8,058.4 $ — $8,058.4
Expenses:
Direct operating ............... 4,476.0 (75.9)(a) 4,400.1
Depreciation of revenue earning
equipment and lease charges ..... 1,757.2 (13.8)(b) 1,743.4
Selling, general and administrative . . . 723.9 (57.0)(c) 666.9
Interest expense ............... 943.3 (139.4)(d) 803.9
Interest and other income, net ...... (42.6) — (42.6)
Total expenses ................. 7,857.8 (286.1) 7,571.7
Income before income taxes ........ 200.6 286.1 486.7
Provision for taxes on income ....... (68.0) (102.3)(e) (170.3)
Net income ................... 132.6 183.8 316.4
Less: Net income attributable to
noncontrolling interest ........... (16.7) — (16.7)
Net income attributable to Hertz Global
Holdings, Inc. and Subsidiaries’
common stockholders ........... $ 115.9 $ 183.8 $ 299.7
(a) Represents the increase in amortization of other intangible assets, depreciation of property and equipment and accretion of
certain revalued liabilities relating to purchase accounting. For the years ended December 31, 2010, 2009, 2008 and 2007,
also includes restructuring and restructuring related charges of $52.6 million, $99.6 million, $185.9 million and $41.2 million,
respectively. For the year ended December 31, 2009, also includes gasoline hedge gains of $5.0 million. For the year ended
December 31, 2007, also includes a vacation accrual adjustment of $29.8 million.
(b) Represents the increase in depreciation of revenue earning equipment based upon its revaluation relating to purchase
accounting.
(c) Represents an increase in depreciation of property and equipment relating to purchase accounting. For the years ended
December 31, 2010, 2009, 2008 and 2007, also includes restructuring and restructuring related charges of $15.3 million,
$53.7 million, $56.6 million and $55.2 million, respectively. For all periods presented, also includes other adjustments which
are detailed in the ‘‘Adjusted Pre-Tax Income (Loss), Adjusted Net Income (Loss) and Adjusted Earnings Per Share’’
reconciliations.
(d) Represents non-cash debt charges relating to the amortization and write-off of deferred debt financing costs and debt
discounts. For the years ended December 31, 2010 and 2009, also includes $68.9 million and $74.6 million, respectively,
associated with the amortization of amounts pertaining to the de-designation of our interest rate swaps as effective hedging
instruments. For the years ended December 31, 2008 and 2007, also includes $11.8 million and $20.4 million, respectively,
associated with the ineffectiveness of our interest rate swaps. For the year ended December 31, 2006, also includes interest
on the $1.0 billion HGH loan facility of $39.9 million and $1.0 million associated with the reversal of the ineffectiveness of our
interest rate swaps.
(e) Represents a provision for income taxes derived utilizing a normalized income tax rate (34% for 2010, 2009 and 2008 and
35% for 2007 and 2006).
(f) 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.
(g) Represents non-cash impairment charges related to our goodwill, other intangible assets and property and equipment.