Hertz 2012 Annual Report Download - page 228

Non-GAAP Reconciliations
(In millions)
Condensed Consolidated Statements of Operations
Year Ended December 31, 2012
As As
Reported Adjustments Adjusted
Total revenues ............................................ $9,020.8 $ — $9,020.8
Expenses:
Direct operating .......................................... 4,795.8 (131.1)(a) 4,664.7
Depreciation of revenue earning equipment and lease charges ............ 2,148.1 (12.1)(b) 2,136.0
Selling, general and administrative .............................. 945.8 (160.8)(c) 785.0
Interest expense ......................................... 649.9 (101.1)(d) 548.8
Interest income .......................................... (4.9) — (4.9)
Other (income) expense, net .................................. 35.5 (45.8)(f) (10.3)
Total expenses ............................................ 8,570.2 (450.9) 8,119.3
Income before income taxes ................................... 450.6 450.9 901.5
Provision for taxes on income .................................. (207.5) (99.0)(g) (306.5)
Net income attributable to Hertz Global Holdings, Inc. and Subsidiaries’ common
stockholders ............................................ $ 243.1 $ 351.9 $ 595.0
Year Ended December 31, 2011
As As
Reported Adjustments Adjusted
Total revenues ............................................ $8,298.4 $ — $8,298.4
Expenses:
Direct operating .......................................... 4,566.4 (122.1)(a) 4,444.3
Depreciation of revenue earning equipment and lease charges ............ 1,905.7 (10.7)(b) 1,895.0
Selling, general and administrative .............................. 745.3 (30.6)(c) 714.7
Interest expense ......................................... 699.7 (130.4)(d) 569.3
Interest income .......................................... (5.5) — (5.5)
Other (income) expense, net .................................. 62.5 (62.4)(e) 0.1
Total expenses ............................................ 7,974.1 (356.2) 7,617.9
Income before income taxes ................................... 324.3 356.2 680.5
Provision for taxes on income .................................. (128.5) (102.8)(g) (231.3)
Net income .............................................. 195.8 253.4 449.2
Less: Net income attributable to noncontrolling interest .................. (19.6) — (19.6)
Net income attributable to Hertz Global Holdings, Inc. Inc. and Subsidiaries’
common stockholders ...................................... $ 176.2 $ 253.4 $ 429.6
(a) Represents the increase in amortization of other intangible assets, depreciation of property and equipment and accretion of
certain revalued liabilities relating to purchase accounting. For the years ended December 31, 2012 and 2011, includes
restructuring and restructuring related charges of $28.6 million and $52.5 million, respectively. Also includes $7.9 million
related to the impact of Hurricane Sandy for the year ended December 31, 2012.
(b) Represents the increase in depreciation of revenue earning equipment based upon its revaluation relating to purchase
accounting.
(c) Represents an increase in depreciation of property and equipment relating to purchase accounting. For the years ended
December 31, 2012 and 2011, also includes restructuring and restructuring related charges of $20.5 million and
$13.7 million, respectively, and acquisition related costs of $57.7 million and $18.8 million, respectively. Also includes other
adjustments which are detailed in the ‘‘Adjusted Pretax Income (Loss),’’ ‘‘Adjusted Net Income (Loss),’’ and ‘‘Adjusted
Diluted Earnings Per Share’’ reconciliations.
(d) Represents non-cash debt charges relating to the amortization and write off of deferred debt financing costs and debt
discounts of $83.6 million and $130.4 million for the years ended December 31, 2012 and 2011, respectively. Also includes
$17.5 million of pre-acquisition interest and commitment fee expenses for interim financing associated with the Dollar Thrifty
acquisition for the year ended December 31, 2012.
(e) Represents premiums paid to redeem our 10.5% Senior Subordinated Notes and a portion of our 8.875% Senior Notes.
(f) Primarily represents the loss on the Advantage divestiture of $31.4 million, expenses associated with additional required
divestitures and costs related to the Dollar Thrifty acquisition of $24.1 million, offset by a gain on the investment in Dollar
Thrifty stock of $8.5 million.
(g) Represents a provision for income taxes derived utilizing a normalized income tax rate of 34%.