Hertz 2012 Annual Report Download - page 230

Non-GAAP Reconciliations (Continued)
(In millions, except per share amounts)
Adjusted Pre-Tax Income (Loss), Adjusted Net Income (Loss) and Adjusted Diluted Earnings Per
Share
Year Ended December 31, 2012
Other
Car Equipment Reconciling
Rental Rental Items Total
Income (loss) before income taxes ........................ $ 784.1 $152.6 $(486.1) $ 450.6
Adjustments:
Purchase accounting(a) .............................. 61.6 44.3 3.7 109.6
Non-cash debt charges(b) ............................. 38.1 5.0 40.5 83.6
Restructuring charges(c) .............................. 26.4 8.8 2.8 38.0
Restructuring related charges(c) ......................... 8.3 0.5 2.3 11.1
Derivative (gains) losses(c) ............................ 0.2 — 0.7 0.9
Acquisition related costs and charges(f) .................... 96.4 — 67.3 163.7
Other(g) ........................................ 5.0 15.8 23.2 44.0
Adjusted pre-tax income (loss) ........................... 1,020.1 227.0 (345.6) 901.5
Assumed (provision) benefit for income taxes of 34% ............. (346.8) (77.2) 117.5 (306.5)
Noncontrolling interest ................................ — — — —
Adjusted net income (loss) ............................. $ 673.3 $149.8 $(228.1) $ 595.0
Adjusted diluted number of shares outstanding ................ 448.2
Adjusted diluted earnings per share ........................ $ 1.33
Year Ended December 31, 2011
Other
Car Equipment Reconciling
Rental Rental Items Total
Income (loss) before income taxes ......................... $755.6 $ 69.3 $(500.6) $ 324.3
Adjustments:
Purchase accounting(a) ............................... 39.6 44.4 3.6 87.6
Non-cash debt charges(b) ............................. 43.9 5.5 81.0 130.4
Restructuring charges(c) ............................... 16.6 40.5 (0.7) 56.4
Restructuring related charges(c) .......................... 7.0 1.9 0.9 9.8
Derivative (gains) losses(c) ............................. 0.6 — (0.7) (0.1)
Pension adjustment(d) ................................ (13.1) — — (13.1)
Acquisition related costs and charges(f) ..................... — — 18.8 18.8
Management transition costs(d) .......................... — — 4.0 4.0
Premiums paid on debt(e) ............................. — — 62.4 62.4
Adjusted pre-tax income (loss) ............................ 850.2 161.6 (331.3) 680.5
Assumed (provision) benefit for income taxes of 34% ............. (289.1) (54.9) 112.7 (231.3)
Noncontrolling interest ................................. — — (19.6) (19.6)
Adjusted net income (loss) .............................. $561.1 $106.7 $(238.2) $ 429.6
Adjusted diluted number of shares outstanding ................. 444.8
Adjusted diluted earnings per share ........................ $ 0.97
(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.
(b) Represents non-cash debt charges relating to the amortization and write-off of deferred debt financing costs and debt
discounts.
(c) Amounts are included within direct operating and selling, general and administrative expense in our statement of operations.
(d) Amounts are included within selling, general and administrative expense in our statement of operations.
(e) Represents premiums paid to redeem our 10.5% Senior Subordinated Notes and a portion of our 8.875% Senior Notes.
These costs are included within other (income) expense, net in our statement of operations.
(f) Primarily represents Dollar Thrifty acquisition related expenses of $57.7 million for the year ended December 31, 2012. Also
includes change in control expenses, ‘Day-1’ compensation expenses and other adjustments related to the Dollar Thrifty
acquisition of $42.7 million, loss on the Advantage divestiture of $31.4 million, expenses related to additional required
divestitures and costs associated with the Dollar Thrifty acquisition of $24.2 million, pre-acquisition interest and commitment
fee expenses for interim financing associated with the Dollar Thrifty acquisition of $17.5 million and a gain on the investment
in Dollar Thrifty stock of $8.5 million for the year ended December 31, 2012.
(g) Primarily represents expenses related to the withdrawal from a multiemployer pension plan of $23.2 million, litigation accrual
of $14.0 million and expenses associated with the impact of Hurricane Sandy of $7.9 million.