Hertz 2011 Annual Report Download - page 212

Non-GAAP Reconciliations (Continued)
(In millions, except per share amounts)
Adjusted Pre-Tax Income (Loss), Adjusted Net Income (Loss) and Adjusted Earnings Per Share
Year Ended December 31, 2011 Year Ended December 31, 2010
Other Other
Car Equipment Reconciling Car Equipment Reconciling
Rental Rental Items Total Rental Rental Items Total
Income (loss) before income taxes ....... $755.6 $ 69.3 $(500.6) $ 324.3 $ 441.8 $(14.6) $(441.8) $ (14.6)
Adjustments:
Purchase accounting
(a)
............. 39.6 44.4 3.6 87.6 37.0 50.1 3.2 90.3
Non-cash debt charges
(b)
........... 43.9 5.5 81.0 130.4 133.3 7.5 41.8 182.6
Restructuring charges
(c)
............ 16.6 40.5 (0.7) 56.4 18.1 34.7 1.9 54.7
Restructuring related charges
(c)
........ 7.0 1.9 0.9 9.8 11.9 0.3 1.0 13.2
Derivative (gains) losses
(c)
........... 0.6 — (0.7) (0.1) (0.2) — 3.4 3.2
Pension adjustment
(c)
.............. (13.1) — — (13.1) — — — —
Acquisition related costs
(d)
........... — — 18.8 18.8 — — 17.7 17.7
Management transition costs
(d)
........ — — 4.0 4.0 — — — —
Premiums paid on debt
(e)
........... — — 62.4 62.4 — — — —
Adjusted pre-tax income (loss) ......... 850.2 161.6 (331.3) 680.5 641.9 78.0 (372.8) 347.1
Assumed (provision) benefit for income taxes
of 34%...................... (289.1) (54.9) 112.7 (231.3) (218.3) (26.5) 126.8 (118.0)
Noncontrolling interest .............. — — (19.6) (19.6) — — (17.4) (17.4)
Adjusted net income (loss) ............ $561.1 $106.7 $(238.2) $ 429.6 $ 423.6 $ 51.5 $(263.4) $ 211.7
Adjusted number of shares outstanding .... 444.8 410.0
Adjusted earnings per share ........... $ 0.97 $ 0.52
Year Ended December 31, 2007
Other
Car Equipment Reconciling
Rental Rental Items Total
Income (loss) before income taxes ....... $464.3 $308.5 $(390.3) $ 382.5
Adjustments:
Purchase accounting
(a)
............. 35.3 58.1 1.8 95.2
Non-cash debt charges
(b)
........... 66.5 11.2 28.2 105.9
Restructuring charges
(c)
............ 64.5 4.9 27.0 96.4
Derivative (gains) losses
(c)
........... (4.1) — — (4.1)
Vacation accrual adjustment
(c)
......... (25.8) (8.9) (1.8) (36.5)
Management transition costs
(d)
........ — — 15.0 15.0
Secondary offering costs
(d)
.......... — — 2.0 2.0
Adjusted pre-tax income (loss) ......... 600.7 373.8 (318.1) 656.4
Assumed (provision) benefit for income taxes
of 35%...................... (210.2) (130.8) 111.3 (229.7)
Noncontrolling interest .............. — — (19.7) (19.7)
Adjusted net income (loss) ............ $390.5 $243.0 $(226.5) $ 407.0
Adjusted number of shares outstanding .... 324.8
Adjusted earnings per share ........... $ 1.25
(a) Represents the purchase accounting effects of the acquisition of all of Hertz’s common stock on December 21, 2005 on our results of
operations relating to increased depreciation and amortization of tangible and intangible assets and accretion of revalued workers’
compensation and public liability and property damage liabilities. Also represents the purchase accounting effects of subsequent acquisitions
on our results of operations relating to increased depreciation and amortization of intangible assets.
(b) Represents non-cash debt charges relating to the amortization and write-off of deferred debt financing costs and debt discounts. For the year
ended December 31, 2010, also includes $68.9 million associated with the amortization of amounts pertaining to the de-designation of our
interest rate swaps as effective hedging instruments. For the year ended December 31, 2007, also includes $20.4 million associated with the
ineffectiveness of our interest rate swaps.
(c) Amounts are included within direct operating and selling, general and administrative expense in our statement of operations.
(d) Amounts are included within selling, general and administrative expense in our statement of operations.
(e) Represents premiums paid to redeem our 10.5% Senior Subordinated Notes and a portion of our 8.875% Senior Notes. These costs are
included within other (income) expense, net in our statement of operations.