Hertz 2012 Annual Report Download - page 227

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Unlevered Pre-Tax Cash Flow
Unlevered pre-tax cash flow is calculated as Corporate EBITDA less non-fleet capital expenditures, net of
non-fleet disposals, plus changes in working capital (receivables, excluding car rental receivables,
inventories, prepaid expenses, accounts payable and accrued liabilities), cash used for acquisitions,
cash used for / provided by other investing activities, cash used / provided by non-debt financing
activities and the foreign exchange impact on cash and cash equivalents. Unlevered pre-tax cash flow is
important to management and investors as it represents funds available to pay corporate interest and
taxes and to grow our fleet or reduce debt.
Levered After-Tax Cash Flow Before Fleet Growth
Levered after-tax cash flow before fleet growth is calculated as Unlevered Pre-Tax Cash Flow less
corporate net cash interest and corporate cash taxes. Levered after-tax cash flow before fleet growth is
important to management and investors as it represents the funds available to grow our fleet or reduce
our debt.
Corporate Net Cash Interest (used in the calculation of Levered After-Tax Cash Flow Before
Fleet Growth)
Corporate net cash interest represents cash paid by the Company during the period for interest expense
relating to Corporate Debt. Corporate net cash interest helps management and investors measure the
ongoing costs of financing the business exclusive of the costs associated with the fleet financing.
Corporate Cash Taxes (used in the calculation of Levered After-Tax Cash Flow Before Fleet
Growth)
Corporate cash taxes represents cash paid by the Company during the period for income taxes.
Corporate Cash Flow
Corporate cash flow is calculated as Levered After-Tax Cash Flow Before Fleet Growth less equipment
rental fleet growth capital expenditures, net of disposal proceeds and less the car rental fleet equity
requirement. Corporate cash flow is important to management and investors as it represents the cash
available for the reduction of corporate debt.
Corporate Cash Flow Excluding Acquisitions
Corporate cash flow excluding acquisitions is calculated as Corporate cash flow less Acquisitions, net of
cash acquired. For the year ended December 31, 2012, we have also adjusted for $129.6 million of cash
portion of Dollar Thrifty acquisition costs expensed, $306.5 million of restricted cash acquired and
$30.6 million of Dollar Thrifty deferred financing fees.