Hertz 2013 Annual Report Download - page 51

Table of Contents
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All Other Operations Segment
Depreciation of revenue earning equipment and lease charges in our all other operations segment of $425.4 million for 2013 increased
$37.4 million, or 9.6% from $388.0 million for 2012. The increase was primarily driven by an increase in the number of cars at our Donlen
operations.
Selling, General and Administrative Expenses
Selling, general and administrative expenses of 1,021.8 million for 2013 increased $52.4 million due to increases in administrative, sales
promotion and advertising expenses as well as approximately $1.4 million due to the effects of foreign currency translation.
Administrative expenses increased $15.6 million, or 2.7%, primarily attributable to the Recent Acquisitions. On a comparable basis,
administrative expenses decreased for the year by $14.5 million. The decrease was primarily driven by synergies achieved from the
Dollar Thrifty integration and was partially offset by the effects of foreign currency translation of approximately $1.3 million.
Sales promotion expenses increased $8.1 million, or 5.1%, primarily related to increases in sales salaries and commissions due to
improved results and the expansion within the off-airport sales force, partially offset by the effects of foreign currency translation of
approximately $0.4 million.
Advertising expenses increased $28.7 million, or 15.9%, primarily attributable to the Recent Acquisitions, in addition to an increase
in on-line media costs and brand advertising to support new strategic initiatives and the effects of foreign currency translation of
approximately $0.5 million.
Interest Expense
U.S. Car Rental Segment
Interest expense for our U.S. car rental segment of $192.8 million for 2013 increased $15.9 million or 9.0% from $176.9 million for 2012.
The increase was primarily due to the higher levels of debt required to fund the Recent Acquisitions, partly offset by debt refinancing activity
and lower interest rates in 2013.
International Car Rental Segment
Interest expense for our international car rental segment of $114.3 million for 2013 decreased $9.9 million or 8.0% from $124.2 million for
2012. The decrease was primarily due to debt refinancing activity and lower interest rates in 2013.
Worldwide Equipment Rental Segment
Interest expense for our worldwide equipment rental segment of $51.8 million for 2013 decreased $0.2 million or 0.4% from $52.0 million for
2012. The decrease was primarily due to debt refinancing activity and lower interest rates in 2013, partly offset by increases in the weighted-
average debt outstanding as a result of an increase in average fleet size.
All Other Operations Segment
Interest expense for our all other operations segment of $14.7 million for 2013 decreased $0.5 million or 3.3% from $15.2 million for 2012.
The decrease was primarily related to debt refinancing activity and lower interest rates in 2013, partly offset by additional debt used to finance
fleet growth within our Donlen operations.
Other Reconciling Items
Other interest expense relating to interest on corporate debt of $305.3 million for 2013 increased $75.8 million or 33.0% from $229.5 million
for 2012. The increase was primarily due to the debt used to finance the Recent Acquisitions, partly offset by favorable rates due to
refinancing.
Interest Income
Interest income increased $6.7 million from the prior year.
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Source: HERTZ CORP, 10-K, March 31, 2014 Powered by Morningstar® Document Research℠
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