Hertz 2012 Annual Report Download - page 121

HERTZ GLOBAL HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands of Dollars)
Years Ended December 31,
2012 2011 2010
Cash flows from operating activities:
Net income .................................................. $ 243,079 $ 195,730 $ (31,298)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of revenue earning equipment ............................... 2,068,378 1,809,609 1,789,903
Depreciation of property and equipment ................................. 172,582 158,009 154,031
Amortization of other intangible assets .................................. 84,096 70,039 64,713
Amortization and write-off of deferred financing costs ......................... 54,131 92,206 73,120
Amortization and write-off of debt discount ............................... 28,899 38,119 40,701
Stock-based compensation charges ................................... 30,255 31,093 36,560
(Gain) loss on derivatives ......................................... 4,326 (7,990) 10,810
Loss on disposal of business, net .................................... 46,346 — —
(Gain) loss on revaluation of foreign denominated debt ........................ 2,498 (26,641) —
Amortization and ineffectiveness of cash flow hedges ......................... — — 68,815
Provision for losses on doubtful accounts ................................ 34,144 28,164 19,667
Asset writedowns .............................................. — 23,174 20,448
Deferred taxes on income ......................................... 128,760 68,138 (26,529)
Gain on sale of property and equipment ................................ (8,309) (43,520) (5,740)
Gain on revaluation of investment .................................... (8,470) — —
Changes in assets and liabilities, net of effects of acquisition:
Receivables ................................................. (157,732) (79,851) (7,459)
Inventories, prepaid expenses and other assets ............................ (30,802) 478 (61,886)
Accounts payable ............................................. 49,896 (1,139) 119,054
Accrued liabilities .............................................. (22,554) (144,048) (53,445)
Accrued taxes ............................................... 2,801 15,177 272
Public liability and property damage ................................... (4,341) 6,592 (3,058)
Net cash provided by operating activities ............................... 2,717,983 2,233,339 2,208,679
Cash flows from investing activities:
Net change in restricted cash and cash equivalents ........................... (261,605) (101,766) 160,516
Revenue earning equipment expenditures ................................. (9,613,239) (9,454,311) (8,440,872)
Proceeds from disposal of revenue earning equipment ......................... 7,125,096 7,850,442 7,518,446
Property and equipment expenditures ................................... (312,786) (281,695) (179,209)
Proceeds from disposal of property and equipment ........................... 137,694 53,814 38,905
Acquisitions, net of cash acquired ..................................... (1,904,649) (227,081) (47,571)
Purchase of short-term investments, net .................................. — (32,891) 3,491
Proceeds from disposal of business .................................... 84,497 — —
Other investing activities ........................................... (1,779) 586 2,726
Net cash used in investing activities .................................. (4,746,771) (2,192,902) (943,568)
Cash flows from financing activities:
Proceeds from issuance of long-term debt ................................. 2,237,280 3,062,479 2,635,713
Payment of long-term debt ......................................... (952,147) (3,649,315) (2,954,233)
Short-term borrowings:
Proceeds .................................................. 438,387 460,890 490,490
Payments .................................................. (1,280,143) (1,194,056) (970,949)
Proceeds (payments) under the revolving lines of credit, net ..................... 1,273,164 (57,329) 1,026,070
Distributions to noncontrolling interest ................................... — (23,100) (18,200)
Purchase of noncontrolling interest ..................................... (38,000) — —
Proceeds from employee stock purchase plan .............................. 4,275 3,577 3,208
Proceeds from exercise of stock options .................................. 11,220 13,058 7,635
Proceeds from disgorgement of stockholder short-swing profits ..................... 17 77 7
Witholding taxes—restricted stock ..................................... (20,095) (11,465) (7,836)
Payment of financing costs ......................................... (49,433) (91,482) (78,151)
Net cash provided by (used in) financing activities ......................... 1,624,525 (1,486,666) 133,754
Effect of foreign exchange rate changes on cash and cash equivalents ................. 5,739 3,838 (10,337)
Net change in cash and cash equivalents during the period ........................ (398,524) (1,442,391) 1,388,528
Cash and cash equivalents at beginning of period ............................. 931,779 2,374,170 985,642
Cash and cash equivalents at end of period ................................. $ 533,255 $ 931,779 $ 2,374,170
Supplemental disclosures of cash flow information:
Cash paid during the period for:
Interest (net of amounts capitalized) ................................... $ 560,027 $ 640,627 $ 533,044
Income taxes ................................................ 71,661 49,557 50,688
Supplemental disclosures of non-cash flow information:
Purchases of revenue earning equipment included in accounts payable and accrued liabilities . . $ 249,605 $ 153,634 $ 266,354
Sales of revenue earning equipment included in receivables ..................... 617,267 620,724 504,217
Purchases of property and equipment included in accounts payable ................ 34,996 53,263 37,379
Sales of property and equipment included in receivables ....................... 895 41,809 11,071
Purchase of noncontrolling interest included in accounts payable .................. — 38,000 —
The accompanying notes are an integral part of these financial statements.
97