Hertz 2013 Annual Report Download - page 47

Table of Contents

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 and adjustments.
(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.
(11) In 2013, primarily represents expenses related to the loss on conversion of the convertible senior notes. In 2012, primarily represents expenses
related to the withdrawal from a multiemployer pension plan, litigation accrual and expenses associated with the impact of Hurricane Sandy.
(d) Worldwide equipment rental and rental related revenue consists of all revenue, net of discounts, associated with the rental of equipment including
charges for delivery, loss damage waivers and fueling, but excluding revenue arising from the sale of equipment, parts and supplies and certain other
ancillary revenue. Rental and rental related revenue is adjusted in all periods 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 is utilized in the measurement of rental revenue generated per dollar invested in fleet on
an annualized basis and is comparable with the reporting of other industry participants. The following table reconciles our worldwide equipment rental
segment revenues to our worldwide equipment rental and rental related revenue (based on December 31, 2012 foreign exchange rates) for the years
ended December 31, 2013, 2012 and 2011 (in millions of dollars):
 



Worldwide equipment rental segment revenues $1,538.0
$1,385.4
$1,209.5
Worldwide equipment sales and other revenue (132.3)
(122.9)
(107.4)
Foreign currency adjustment 9.3
4.0
(7.0)
Rental and rental related revenue $1,415.0
$1,266.5
$1,095.1
(e) Same-store revenue growth is calculated as the year over year change in revenue for locations that are open at the end of the period reported and have
been operating under our direction for more than twelve months. The same-store revenue amounts are adjusted in all periods 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.





 



Revenues by Segment
U.S. car rental $6,324.4
$4,893.2
$1,431.2
29.2%
International car rental 2,382.5
2,268.5
114.0
5.0%
Worldwide equipment rental 1,538.0
1,385.4
152.6
11.0%
All other operations 527.0
477.8
49.2
10.3%
Total revenues $10,771.9
$9,024.9
$1,747.0
19.4%
Results from operations are discussed below and include comparisons to prior year periods. We acquired Dollar Thrifty on November 19,
2012. Our results from operations include Dollar Thrifty for the post-acquisition period ended December 31, 2012, which is approximately 43
days in 2012. The results of operations for Dollar Thrifty are included within our U.S. car rental segment. In order to obtain regulatory
approval and clearance for Dollar Thrifty acquisition, Hertz agreed to dispose of Advantage. On December 12, 2012, Hertz completed the sale
of Simply Wheelz LLC, or the "Advantage divestiture." The acquisition of Dollar Thrifty and related Advantage divestiture is referred to as
"Recent
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Source: HERTZ CORP, 10-K, March 31, 2014 Powered by Morningstar® Document Research℠
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