Hertz 2013 Annual Report Download - page 58

Table of Contents
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All Other Operations Segment
Interest expense for our all other operations segment of $15.2 million for 2012 increased 153.3% from $6.0 million for 2011. The increase is
primarily attributable to a full year of Donlen operations in 2012 as compared to four months of operations in 2011.
Other Reconciling Items
Other interest expense relating to interest on corporate debt of $229.5 million for 2012 decreased 15.6% from $271.9 million for 2011. The
decrease was primarily due to larger write-offs last year of unamortized debt costs in connection with refinancing activity, lower rates achieved
with the refinancing of our Senior Notes and Senior Subordinated Notes and a decrease in the weighted-average debt outstanding and
interest rates.
Interest Income
Interest income decreased $0.6 million from the prior year.
Other (Income) Expense, Net
Other (income) expense, net of $35.5 million for 2012 decreased $27.0 million, or 43.2% from $62.5 million for 2011. Primarily included
within 2012 other (income) expense, net is a loss on the Advantage divestiture of $31.4 million, expenses related to additional required
divestitures and costs associated with the Dollar Thrifty acquisition of $24.2 million, partly offset by a gain from the sale of Switzerland
operations of $10.3 million and a gain on the investment in Dollar Thrifty stock of $8.5 million. Other (income) expense, net for 2011
primarily includes premiums paid in connection with the redemption of our 10.5% Senior Subordinated Notes and a portion of our 8.875%
Senior Notes.
ADJUSTED PRE-TAX INCOME (LOSS)
U.S. Car Rental Segment
Adjusted pre-tax income for our U.S. car rental segment of $872.8 million increased 29.6% from $673.2 million for 2011. The increase was
primarily due to stronger volumes, lower net depreciation per vehicle, improved residual values and disciplined cost management, partly
offset by decreased pricing. Adjustments to our U.S. car rental segment income before income taxes for 2012 totaled $165.8 million (which
consists of acquisition related costs and charges of $96.4 million, purchase accounting charges of $34.3 million, debt-related charges of
$19.2 million, restructuring and restructuring related charges of $10.9 million and other of $5.0 million). Adjustments to our U.S. car rental
segment income before income taxes for 2011 totaled $48.7 million (which consists of purchase accounting of $23.6 million, debt-related
charges of $21.2 million and restructuring and restructuring related charges of $3.9 million). See footnote (c) to the table under “Results of
Operations” for a summary and description of these adjustments.
International Car Rental Segment
Adjusted pre-tax income for our international car rental segment of $92.9 million decreased 36.2% from $145.6 million for 2011. The
decrease was primarily due to decreased pricing, partly offset by lower net depreciation per vehicle, improved residual values and disciplined
cost management. Adjustments to our international car rental segment income before income taxes for 2012 totaled $47.8 million (which
consists of restructuring and restructuring related charges of $23.5 million, debt-related charges of $15.1 million, purchase accounting
charges of $8.6 million, other of $0.2 million and loss on derivatives of $0.4 million). Adjustments to our international car rental segment
income before income taxes for 2011 totaled $35.8 million (which consists of debt-related charges of $20.2 million, restructuring and
restructuring related charges of $18.9 million, purchase accounting of $9.1 million, loss on derivatives of $0.7 million and pension
adjustment of $(13.1) million). See footnote (c) to the table under “Results of Operations” for a summary and description of these
adjustments.
Worldwide Equipment Rental Segment
Adjusted pre-tax income for our worldwide equipment rental segment of $226.2 million increased 40.2% from $161.3 million for 2011. The
increase was primarily due to stronger volumes and pricing, strong cost management performance and higher residual values on the
disposal of used equipment. Adjustments to our equipment rental segment income
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Source: HERTZ CORP, 10-K, March 31, 2014 Powered by Morningstar® Document Research℠
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