Hertz 2013 Annual Report Download - page 50

Table of Contents

of 11.0% consisting of gasoline and vehicle operating costs of $12.2 million and higher maintenance costs of $8.0 million due to
higher fleet levels. These increases were partly offset by the effects of foreign currency translation of approximately $0.5 million.
Personnel related expenses for our worldwide equipment rental segment of $265.3 million for 2013 increased $20.5 million, or
8.4% from 2012. The increase was attributable to an increase in salaries and related expenses of $19.7 million and an increase in
benefits of $3.0 million. These increases were partly offset by decreases in incentives of $1.3 million and the effects of foreign
currency translation of approximately $0.8 million.
Other direct operating expenses for our worldwide equipment rental segment of $330.3 million for 2013 increased $18.4 million, or
5.9% from 2012. The increase was primarily related to increases in the costs of sales of $8.7 million, customer service costs $4.0
million, facility costs of $3.9 million, service vehicle costs of $3.8 million and field system costs of $2.5 million. These increases
were partly offset by decreases in field administrative costs of $2.9 million and the effects of foreign currency translation of
approximately $1.4 million.
All Other Operations Segment
Direct operating expenses for our all other operations segment of $24.2 million for 2013 increased $0.7 million, or 3.0%, from $23.5 million
for 2012 as a result of an increase in personnel related expenses offset by decreases in other direct operating expenses and fleet related
expenses.
Fleet related expenses for our all other operations segment of $0.4 million for 2013 decreased $0.1 million from 2012.
Personnel related expenses for our all other operations segment of $25.3 million for 2013 increased $0.9 million, or 3.7%, from
2012. The increase was primarily related to increased salaries and related expenses in our Donlen operations.
Other direct operating expenses for our all other operations segment of $(1.5) million for 2013 decreased $0.1 million from 2012.
Depreciation of Revenue Earning Equipment and Lease Charges
U.S. Car Rental Segment
Depreciation of revenue earning equipment and lease charges for our U.S. car rental segment of $1,269.3 million for 2013 increased $328.7
million, or 34.9% from $940.6 million for 2012. The increase was primarily attributable to an increase in average fleet due to the Recent
Acquisitions and a deterioration in the used vehicle residual values.
International Car Rental Segment
Depreciation of revenue earning equipment and lease charges for our international car rental segment of $532.0 million for 2013 increased
$3.8 million, or 0.7% from $528.2 million for 2012. The increase was primarily due to increased fleet size in our international car rental
operations, partially offset by slight strengthening of used vehicle residual values, mix of vehicles, better procurement of fleet and by lower
net depreciation per vehicle.
Worldwide Equipment Rental Segment
Depreciation of revenue earning equipment and lease charges in our worldwide equipment rental segment of $298.8 million for 2013
increased $26.7 million or 9.8% from $272.1 million for 2012. The increase was primarily due to a 10.8% increase in the average
acquisition cost of rental equipment operated during the period, partly offset by strong residual values and improved disposal channel mix
and the effects of foreign currency translation of approximately $0.5 million.
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Source: HERTZ CORP, 10-K, March 31, 2014 Powered by Morningstar® Document Research℠
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