Hertz 2013 Annual Report Download - page 130

Table of Contents
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(a) The following table reconciles adjusted pre-tax income to income before income taxes for the years ended December 31, 2013, 2012
and 2011 (in millions of dollars):

Adjusted pre-tax income: 


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
Total reportable segments 1,581.7
1,239.5
995.1
Adjustments:
Other reconciling items(1) (410.7)
(322.2)
(308.2)
Purchase accounting(2) (132.2)
(109.6)
(87.6)
Debt-related charges(3) (48.7)
(56.4)
(105.9)
Restructuring charges (77.0)
(38.0)
(56.4)
Restructuring related charges(4) (21.8)
(11.1)
(9.8)
Derivative gains (losses)(5) (1.0)
(0.9)
0.1
Acquisition related costs and charges (6) (18.5)
(163.7)
(18.8)
Integration expenses(7) (40.0)
—
—
Relocation costs (7.8)
—
—
Management transition costs —
—
(4.0)
Pension adjustment(8) —
—
13.1
Premiums paid on debt(9) (28.7)
—
(62.4)
Impairment charges and other(10) (44.0)
—
—
Other(11) (12.1)
(44.0)
—
Income before income taxes $ 739.2
$493.6
$ 355.2
_________________________________________________________________________
(1) Represents general corporate expenses, certain interest expense (including net interest on corporate debt), as well as other business activities.
(2) Represents the increase in amortization of other intangible assets, depreciation of property and equipment and accretion of revalued liabilities
relating to purchase accounting.
(3) Represents debt-related charges relating to the amortization and write-off of deferred debt financing costs and debt discounts.
(4) Represents incremental costs incurred directly supporting our business transformation initiatives. Such costs include transition costs incurred in
connection with our business process outsourcing arrangements and incremental costs incurred to facilitate business process re-engineering
initiatives that involve significant organization redesign and extensive operational process changes.
(5) Represents the mark-to-market adjustment on our interest rate cap.
(6) In 2012, primarily represents Dollar Thrifty acquisition related expenses, change in control expenses, 'Day-1' compensation expenses and other
adjustments related to the Dollar Thrifty acquisition, loss on the Advantage divestiture, expenses related to additional required divestitures and
costs associated with the Dollar Thrifty acquisition, pre-acquisition interest and commitment fee expenses for interim financing associated with the
Dollar Thrifty acquisition and a gain on the investment in Dollar Thrifty stock.
(7) In 2013, primarily represents Dollar Thrifty integration related expenses.
(8) Represents a gain for the U.K. pension plan relating to unamortized prior service cost from a 2010 amendment that eliminated discretionary
pension increases related to pre-1997 service primarily pertaining to inactive employees.
(9) In 2013, represents premiums paid to redeem our 8.50% Former European Fleet Notes. In 2011, represents premiums paid to redeem our 10.5%
Senior Subordinated Notes and a portion of our 8.875% Senior Notes.
(10) Related to FSNA and its subsidiary, Simply Wheelz.
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Source: HERTZ CORP, 10-K, March 31, 2014 Powered by Morningstar® Document Research℠
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