Hertz 2013 Annual Report Download - page 49

Table of Contents
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Direct Operating Expenses
U.S. Car Rental Segment
Direct operating expenses for our U.S. car rental segment of $3,488.9 million for 2013 increased $811.0 million, or 30.3%, from $2,677.9
million for 2012 as a result of increases in fleet related expenses, personnel related expenses and other direct operating expenses.
Fleet related expenses for our U.S. car rental segment of $720.8 million for 2013 increased $181.7 million, or 33.7%, from 2012.
On a comparable basis, the increase was primarily related to U.S. rental volume demand which resulted in increases in vehicle
damage of $48.1 million, self insurance expenses of $9.0 million and vehicle maintenance costs of $9.6 million due to the
expansion of our off-airport and leisure businesses, longer holding periods and the impact of recalls. These increases were partly
offset by a decrease in other vehicle operating costs of $4.5 million and gasoline costs of $4.4 million.
Personnel related expenses for our U.S. car rental segment of $1,132.5 million for 2013 increased $210.4 million, or 22.8%, from
2012. On a comparable basis, there was an increase in field compensation of $30.4 million primarily due to an increase in
headcount.
Other direct operating expenses for our U.S. car rental segment of $1,635.6 million for 2013 increased $418.9 million, or 34.4%,
from 2012. On a comparable basis, the increases in other direct operating expenses were due to increases in facilities of $20.4
million, commissions of $15.1 million, field systems and computer costs of $11.5 million, concessions of $14.2 million,
reservations of $5.5 million and field administration cost of $3.6 million. The increases were primarily a result of improved U.S. car
rental volume demand and the expansion of our off-airport business. The above increases were partly offset by decreases in
restructuring of $4.4 million related to the Dollar Thrifty integration.
International Car Rental Segment
Direct operating expenses for our international car rental segment of $1,404.3 million for 2013 increased $62.9 million, or 4.7%, from
$1,341.4 million for 2012 as a result of increases in fleet related expenses, personnel related expenses and other direct operating expenses.
Fleet related expenses for our international car rental segment of $399.3 million for 2013 increased $6.7 million, or 1.7%, from
2012. On a comparable basis, there was a decrease in fleet operating expenses of $4.5 million partially offset by the effects of foreign
currency translation of $2.5 million.
Personnel related expenses for our international car rental segment of $357.8 million for 2013 increased $11.9 million, or 3.4%,
from 2012. On a comparable basis, there was an increase in field compensation of $1.7 million and the effects of foreign currency
translation of $1.0 million.
Other direct operating expenses for our international car rental segment of $647.2 million for 2013 increased $44.3 million, or
7.3%, from 2012. On a comparable basis, the increase was primarily related to increases in restructuring charges of $10.7 million,
concession fees of $6.0 million, reservation costs of $5.8 million, customer service costs of $5.1 million, and the effect of foreign
currency translation of $1.5 million. The increases were primarily a result of improved international car rental volume demand. The
increases in other direct operating expenses were partly offset by a decrease in commissions of $2.4 million.
Worldwide Equipment Rental Segment
Direct operating expenses for our worldwide equipment rental segment of $828.0 million for 2013 increased $57.8 million, or 7.5% from
$770.2 million for 2012 as a result of increases in fleet related expenses, personnel related expenses and other direct operating expenses.
Fleet related expenses for our worldwide equipment rental segment of $232.4 million for 2013 increased $18.9 million, or 8.9%
from 2012. The increase was primarily related to costs incurred to support the revenue growth
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Source: HERTZ CORP, 10-K, March 31, 2014 Powered by Morningstar® Document Research℠
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