Hertz 2011 Annual Report Download - page 84

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS (Continued)
The following table sets forth certain of our selected car rental, equipment rental and other operating
data for each of the periods indicated:
Years Ended, or as of December 31,
2011 2010 2009
Selected Car Rental Operating Data:
Worldwide number of transactions (in thousands) .......... 27,095 25,970 24,549
Domestic (Hertz) ................................ 19,903 19,101 17,791
International (Hertz) .............................. 7,192 6,869 6,758
Worldwide transaction days (in thousands)(a) ............. 137,301 127,159 118,459
Domestic (Hertz) ................................ 93,741 86,422 79,644
International (Hertz) .............................. 43,560 40,737 38,815
Worldwide rental rate revenue per transaction day(b) ........ $ 41.62 $ 43.24 $ 43.14
Domestic (Hertz) ................................ $ 40.30 $ 42.16 $ 42.20
International (Hertz) .............................. $ 44.47 $ 45.52 $ 45.07
Worldwide average number of cars during the period ....... 615,600 445,200 413,500
Domestic (Hertz company-operated) .................. 321,700 297,900 274,000
International (Hertz company-operated) ................ 156,900 147,300 139,500
Donlen (under lease and maintenance) ................ 137,000 N/A N/A
Adjusted pre-tax income (in millions of dollars)(c) ........... $ 850.2 $ 641.9 $ 459.2
Worldwide revenue earning equipment, net (in millions of
dollars) ....................................... $8,318.7 $ 7,220.1 $ 7,003.6
Selected Worldwide Equipment Rental Operating Data:
Rental and rental related revenue (in millions of dollars)(d) .... $1,094.4 $ 975.9 $ 1,020.6
Same store revenue growth (decline), including growth
initiatives(e) .................................... 9.1% (5.4)% (29.1)%
Average acquisition cost of rental equipment operated during
the period (in millions of dollars) ..................... $2,804.8 $ 2,732.6 $ 2,874.7
Adjusted pre-tax income (in millions of dollars)(c) ........... $ 161.6 $ 78.0 $ 76.4
Revenue earning equipment, net (in millions of dollars) ...... $1,786.7 $ 1,703.7 $ 1,832.3
(a) Transaction days represents the total number of days that vehicles were on rent in a given period.
(b) Car rental rate revenue consists of all revenue, net of discounts, associated with the rental of cars including charges for
optional insurance products, but excluding revenue derived from fueling and concession and other expense pass-throughs,
NeverLost units in the U.S. and certain ancillary revenue. Rental rate revenue per transaction day is calculated as total rental
rate revenue, divided by the total number of transaction days, with all periods adjusted to eliminate the effect of fluctuations in
foreign currency. Our management believes eliminating the effect of fluctuations in foreign currency is appropriate so as not
to affect the comparability of underlying trends. This statistic is important to our management as it represents the best
measurement of the changes in underlying pricing in the car rental business and encompasses the elements in car rental
pricing that management has the ability to control. The optional insurance products are packaged within certain negotiated
corporate, government and membership programs and within certain retail rates being charged. Based upon these existing
programs and rate packages, management believes that these optional insurance products should be consistently included
in the daily pricing of car rental transactions. On the other hand, non-rental rate revenue items such as refueling and
concession pass-through expense items are driven by factors beyond the control of management (i.e. the price of fuel and
the concession fees charged by airports). Additionally, NeverLost units are an optional revenue product which management
does not consider to be part of their daily pricing of car rental transactions. The following table reconciles our car rental
58