Hertz 2011 Annual Report Download - page 127

HERTZ GLOBAL HOLDINGS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
The amount of Donlen’s revenue and earnings included in Hertz’s consolidated statement of operations
for the year ended December 31, 2011, and the revenue and earnings of the combined entity had the
acquisition date been January 1, 2010, are as follows (in millions):
Revenue Earnings
Actual from 9/1/11 - 12/31/11 (Donlen only) .................... $ 142.7 $ 2.0
2011 supplemental pro forma from 1/1/11 - 12/31/11 (combined
entity) ............................................. $8,559.6 $187.0
2010 supplemental pro forma from 1/1/10 - 12/31/10 (combined
entity) ............................................. $7,904.3 $ (48.6)
Donlen’s actual earnings for the four months ended December 31, 2011 was impacted by $1.9 million
related to the amortization expense associated with the acquired intangible assets and the fair value
adjustment related to acquired software, as well as, the write-off of certain unamortized debt costs.
2011 supplemental pro forma revenue for the year ended December 31, 2011 excludes $3.2 million
related to deferred revenue which was eliminated as part of acquisition accounting. 2011 supplemental
pro forma earnings for the year ended December 31, 2011 excludes $2.0 million related to deferred
income which was eliminated as part of acquisition accounting, and $6.1 million of acquisition related
costs incurred in 2011.
2010 supplemental pro forma revenue for the year ended December 31, 2010 excludes $8.7 million
related to deferred revenue which was eliminated as part of acquisition accounting. 2010 supplemental
pro forma earnings for the year ended December 31, 2010 excludes $5.3 million related to deferred
income which was eliminated as part of acquisition accounting, and includes $6.1 million of acquisition
related costs incurred.
This transaction has been accounted for using the acquisition method of accounting in accordance with
GAAP and operating results of Donlen from the date of acquisition are included in our consolidated
statement of operations. The allocation of the purchase price to the tangible and intangible net assets
acquired is substantially complete, except with regards to Deferred taxes on income, which could
change once Donlen’s pre-acquisition tax return is completed.
Other Acquisitions
Additionally, during the year ended December 31, 2011, we added ten international car rental locations
and four domestic equipment rental locations by acquiring a former franchisee and from external
acquisitions. These acquisitions are not material to the consolidated amounts presented within our
statement of operations for the year ended December 31, 2011.
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