Hertz 2012 Annual Report Download - page 88

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS (Continued)
The following table sets forth certain of our selected car rental, equipment rental and other operating
data for each of the periods indicated:
Years Ended or as of December 31,
2012 2011 2010
Selected Car Rental Operating Data:
Worldwide number of transactions (in thousands) ......... 29,127 27,095 25,970
Domestic (Hertz, Dollar and Thrifty) .................. 21,920 19,903 19,101
International (Hertz, Dollar and Thrifty) ................ 7,207 7,192 6,869
Worldwide transaction days (in thousands)(a) ............. 148,787 137,301 127,159
Domestic (Hertz, Dollar and Thrifty) .................. 105,539 93,741 86,422
International (Hertz, Dollar and Thrifty) ................ 43,248 43,560 40,737
Worldwide rental rate revenue per transaction day(b) ........ $ 40.01 $ 41.33 $ 43.14
Domestic (Hertz, Dollar and Thrifty) .................. $ 39.07 $ 40.30 $ 42.16
International (Hertz, Dollar and Thrifty) ................ $ 42.30 $ 43.56 $ 45.23
Worldwide average number of cars during the period ....... 665,000 615,600 445,200
Domestic (Hertz, Dollar and Thrifty company-operated) .... 359,100 321,700 297,900
International (Hertz, Dollar and Thrifty company-operated) . . 155,100 156,900 147,300
Donlen (under lease and maintenance) ............... 150,800 137,000 N/A
Adjusted pre-tax income (in millions of dollars)(c) .......... $ 1,020.1 $ 850.2 $ 641.9
Worldwide revenue earning equipment, net (in millions of
dollars) ...................................... $10,710.1 $ 8,318.7 $ 7,220.1
Selected Worldwide Equipment Rental Operating Data:
Rental and rental related revenue (in millions of dollars)(d) .... $ 1,257.9 $ 1,094.4 $ 976.1
Same-store revenue growth (decline), including growth
initiatives(e) .................................... 8.6% 9.3% (5.4)%
Average acquisition cost of rental equipment operated
during the period (in millions of dollars) ............. $ 3,069.0 $ 2,804.8 $ 2,732.6
Adjusted pre-tax income (in millions of dollars)(c) .......... $ 227.0 $ 161.6 $ 78.0
Revenue earning equipment, net (in millions of dollars) ..... $ 2,198.2 $ 1,786.7 $ 1,703.7
(a) Transaction days represent the total number of days that vehicles were on rent in a given period.
(b) Car rental rate revenue consists of all revenue, net of discounts, associated with the rental of cars including charges for
optional insurance products, but excluding revenue derived from fueling and concession and other expense pass-throughs,
NeverLost units in the U.S. and certain ancillary revenue. Rental rate revenue per transaction day is calculated as total rental
rate revenue, divided by the total number of transaction days, with all periods adjusted to eliminate the effect of fluctuations in
foreign currency. Our management believes eliminating the effect of fluctuations in foreign currency is appropriate so as not
to affect the comparability of underlying trends. This statistic is important to our management and investors as it represents
the best measurement of the changes in underlying pricing in the car rental business and encompasses the elements in car
rental pricing that management has the ability to control. The optional insurance products are packaged within certain
negotiated corporate, government and membership programs and within certain retail rates being charged. Based upon
these existing programs and rate packages, management believes that these optional insurance products should be
consistently included in the daily pricing of car rental transactions. On the other hand, non-rental rate revenue items such as
refueling and concession pass-through expense items are driven by factors beyond the control of management (i.e. the price
of fuel and the concession fees charged by airports). Additionally, NeverLost units are an optional revenue product which
management does not consider to be part of their daily pricing of car rental transactions. The following table reconciles our
car rental segment revenues to our rental rate revenue and rental rate revenue per transaction day (based on December 31,
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