Hertz 2012 Annual Report Download - page 136

HERTZ GLOBAL HOLDINGS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
• Additional interest expense (approximately $72.7 million in 2012 and $79.1 million in 2011)
associated with the new debt used to finance the Dollar Thrifty acquisition.
• Reclassifying merger related costs from 2012 to 2011 as though the Dollar Thrifty acquisition had
been consummated as of January 1, 2011.
• Reclassifying non-recurring compensation costs incurred in connection with the merger and
integration costs of approximately $46.7 million from 2012 to 2011 as though the Dollar Thrifty
acquisition had been consummated as of January 1, 2011.
• Reclassifying the loss from the Advantage disposition from 2012 to 2011 as though the Dollar
Thrifty acquisition had been consummated as of January 1, 2011.
• Reclassifying charges related to the impact of divesting Dollar Thrifty locations incurred in
connection with the Dollar Thrifty acquisition from 2012 to 2011.
• Impact of fair value adjustment to revenue earning equipment.
• Adjustments to eliminate the results of operations of the Advantage business and locations to be
divested where Dollar Thrifty operated at least one of its brands prior to the consummation of the
Dollar Thrifty acquisition for the years ended December 31, 2012 and 2011.
• Including an estimated amount of leasing revenue to be earned by Hertz from leasing vehicles to
the buyer of Advantage. The depreciation and other expenses associated with the vehicles being
leased to the buyer of Advantage have not been eliminated from the pro forma financial
statements, as their costs remain as part of Hertz’s ongoing operations associated with owning
such vehicles.
All of the above adjustments were adjusted for the applicable tax impact. Hertz has generally assumed a
39% tax rate when estimating the tax impacts of the Dollar Thrifty acquisition, representing the statutory
tax rate for Hertz. The effective tax rate of the combined company could be significantly different (either
higher or lower) depending on post-Dollar Thrifty acquisition activities, cash needs and the geographical
location of businesses.
Pro forma adjustments—Donlen acquisition
2011 supplemental pro forma revenue for the year ended December 31, 2011 excludes $3.2 million
related to deferred revenue which was eliminated as part of acquisition accounting. 2011 supplemental
pro forma earnings for the year ended December 31, 2011 excludes $2.0 million related to deferred
income which was eliminated as part of acquisition accounting, and $6.1 million of acquisition related
costs incurred in 2011.
2010 supplemental pro forma revenue for the year ended December 31, 2010 excludes $8.7 million
related to deferred revenue which was eliminated as part of acquisition accounting. 2010 supplemental
pro forma earnings for the year ended December 31, 2010 excludes $5.3 million related to deferred
income which was eliminated as part of acquisition accounting, and includes $6.1 million of acquisition
related costs incurred.
Other Acquisitions
During the year ended December 31, 2012, we added nineteen domestic equipment rental locations
through external acquisitions. These acquisitions are not material to the consolidated amounts
presented within our statement of operations for the year ended December 31, 2012.
112