Hertz 2011 Annual Report Download - page 209

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DEFINITIONS AND NON-GAAP RECONCILIATIONS
Definitions of Non-GAAP Measures
Adjusted Pre-Tax Income
Adjusted pre-tax income is calculated as income before income taxes plus non-cash purchase
accounting charges, non-cash debt charges relating to the amortization of debt financing costs and debt
discounts and certain one-time charges and non-operational items.
Adjusted Net Income
Adjusted net income is calculated as adjusted pre-tax income less a provision for income taxes derived
utilizing a normalized income tax rate (34% in 2011 and 2010; 35% in 2007) and noncontrolling interest.
The normalized income tax rate is management’s estimate of our long-term tax rate.
Adjusted Earnings Per Share
Adjusted earnings per share is calculated as adjusted net income divided by, for 2011, 444.8 million
shares which represents the weighted average diluted shares outstanding for the period; for 2010,
410.0 million shares which represents the approximate number of shares outstanding at December 31,
2009; and for 2007, the pro forma diluted number of shares outstanding of 324.8 million.