Hertz 2013 Annual Report Download - page 126

Table of Contents
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We have identified four reportable segments, which are organized based on the products and services provided by our operating segments
and the geographic areas in which our operating segments conduct business, as follows: rental of cars, crossovers and light trucks in the
United States, or "U.S. car rental,” rental of cars, crossovers and light trucks internationally, or “international car rental," rental of industrial,
construction, material handling and other equipment, or "worldwide equipment rental" and "all other operations," which includes our Donlen
operating segment. Our U.S. car rental reportable segment consists of our United States operating segment. Our international car rental
reportable segment consists of our Europe and Other International operating segments, which are aggregated into a reportable segment
based primarily upon similar economic characteristics, products and services, customers, delivery methods and general regulatory
environments. We do not aggregate operating segments in determining our worldwide equipment rental reportable segment. We have
grouped information about our Donlen operating segment, which provides fleet leasing and management services and is not considered a
separate reportable segment in accordance with applicable accounting standards, together with other business activities, such as our third
party claim management services, under "all other operations." Other reconciling items include general corporate assets and expenses and
certain interest expense (including net interest on corporate debt).
We historically aggregated our U.S., Europe, Other International and Donlen car rental operating segments together to produce a worldwide
car rental reportable segment. We now present our operations as four reportable segments (U.S. car rental, international car rental,
worldwide equipment rental and all other operations). We have revised our segment results presented herein to reflect this new segment
structure, including for prior periods.
Adjusted pre-tax income is calculated as income before income taxes plus non-cash purchase accounting charges, debt-related charges
relating to the amortization and write-off of debt financing costs and debt discounts and certain one-time charges and non-operational items.
Adjusted pre-tax income is important to management because it allows management to assess operational performance of our business,
exclusive of the items mentioned above. It also allows management to assess the performance of the entire business on the same basis as
the segment measure of profitability. Management believes that it is important to investors for the same reasons it is important to
management and because it allows them to assess our operational performance on the same basis that management uses internally. The
contribution of our reportable segments to revenues and adjusted pre-tax income and the reconciliation to consolidated amounts are
summarized below (in millions of dollars).
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
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Revenues
U.S. car rental
$6,324.4
$4,893.2
$4,468.9
International car rental
2,382.5
2,268.5
2,471.9
Worldwide equipment rental
1,538.0
1,385.4
1,209.5
All other operations
527.0
477.8
149.0
Total
$10,771.9
$9,024.9
$8,299.3
Adjusted pre-tax income(a)
U.S. car rental
$1,091.1
$872.8
$673.2
International car rental
$141.2
$92.9
$145.6
Worldwide equipment rental
$292.1
$226.2
$161.3
All other operations
$57.3
$47.6
$15.0
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Source: HERTZ CORP, 10-K, March 31, 2014 Powered by Morningstar® Document Research℠
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