Hertz 2011 Annual Report Download - page 96

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS (Continued)
management performance and higher residual values on the disposal of used equipment, partly offset
by reductions in volume and pricing. Adjustments to our equipment rental segment loss before income
taxes on a GAAP basis for the years ended December 31, 2010 and 2009, totaled $92.6 million and
$97.1 million, respectively. See footnote c to the table under ‘‘Results of Operations’’ for a summary and
description of these adjustments.
(PROVISION) BENEFIT FOR TAXES ON INCOME, NET INCOME ATTRIBUTABLE TO
NONCONTROLLING INTERESTS AND NET LOSS ATTRIBUTABLE TO HERTZ GLOBAL
HOLDINGS, INC. AND SUBSIDIARIES’ COMMON STOCKHOLDERS
Years Ended
December 31,
2010 2009 $ Change % Change
(in millions of dollars)
Loss before income taxes ........................ $(14.6) $(176.9) $162.3 (91.7)%
(Provision) benefit for taxes on income ............... (16.7) 62.1 (78.8) (126.9)%
Net loss ..................................... (31.3) (114.8) 83.5 (72.7)%
Less: Net income attributable to noncontrolling interests . . (17.4) (14.7) (2.7) 18.4%
Net loss attributable to Hertz Global Holdings, Inc. and
Subsidiaries’ common stockholders ................ $(48.7) $(129.5) $ 80.8 (62.4)%
(Provision) Benefit for Taxes on Income
The effective tax rate for the year ended December 31, 2010 was (113.8)% as compared to 35.1% in the
year ended December 31, 2009. The negative effective tax rate in 2010 is primarily due to a lower loss
before income taxes in 2010, valuation allowances for losses in certain non-U.S. jurisdictions for which
tax benefits cannot be realized and differences in foreign tax rates versus the U.S. Federal tax rate. See
Note 8 to the Notes to our consolidated financial statements included in this Annual Report under the
caption ‘‘Item 8—Financial Statements and Supplementary Data.’’
Net Income Attributable to Noncontrolling Interests
Net income attributable to noncontrolling interests increased 18.4% due to an increase in our majority-
owned subsidiary Navigation Solutions, L.L.C.’s net income for the year ended December 31, 2010 as
compared to the year ended December 31, 2009.
Net Loss Attributable to Hertz Global Holdings, Inc. and Subsidiaries’ Common Stockholders
The net loss attributable to Hertz Global Holdings, Inc. and Subsidiaries’ common stockholders
decreased 62.4% primarily due to higher rental volume and increased pricing in our worldwide car rental
operations, improved residual values on the disposal of used equipment and certain vehicles and
disciplined cost management, partly offset by lower rental volume and pricing in our worldwide
equipment rental operations. The impact of changes in exchange rates on net loss was mitigated by the
fact that not only revenues but also most expenses outside of the United States were incurred in local
currencies.
Liquidity and Capital Resources
Our domestic and international operations are funded by cash provided by operating activities and by
extensive financing arrangements maintained by us in the United States and internationally.
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