Hertz 2013 Annual Report Download - page 59

Table of Contents

before income taxes for 2012 totaled $74.4 million (which consists of purchase accounting of $44.3 million, other of $15.8 million,
restructuring and restructuring related charges of $9.3 million and debt-related charges of $5.0 million). Adjustments to our equipment rental
loss before income taxes for 2011 totaled $92.4 million (which consists of purchase accounting of $44.5 million, restructuring and
restructuring related charges of $42.4 million and debt-related charges of $5.5 million). See footnote (c) to the table under “Results of
Operations” for a summary and description of these adjustments.
All Other Operations Segment
Adjusted pre-tax income for our all other operations segment of $47.6 million increased 217.3% from $15.0 million for 2011. The increase
was primarily attributable to a full year of Donlen operations in 2012 as compared to four months of operations in 2011. Adjustments to our
all other segment income before income taxes for 2012 totaled $22.6 million (which consists of purchase accounting charges of $18.7
million, debt-related charges of $3.8 million, restructuring related charges of $0.3 million and gain on derivatives of $0.2 million).
Adjustments to our all other operations segment income before income taxes for 2011 totaled $9.9 million (which consists of purchase
accounting of $6.7 million, debt-related charges of $2.5 million, restructuring related charges of $0.8 million and gain on derivatives of $0.1
million). See footnote (c) to the table under “Results of Operations” for a summary and description of these adjustments.
PROVISION FOR TAXES ON INCOME, NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST AND NET INCOME
ATTRIBUTABLE TO THE HERTZ CORPORATION AND SUBSIDIARIES' COMMON STOCKHOLDER

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 
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

Income before income taxes $493.6
$ 355.2
$138.4
39.0 %
Provision for taxes on income (222.4)
(137.2)
(85.2)
62.1 %
Net income 271.2
218.0
53.2
24.4 %
Less: Net income attributable to noncontrolling interest —
(19.6)
19.6
(100.0)%
Net income attributable to The Hertz Corporation
and Subsidiaries' common stockholders $271.2
$198.4
$ 72.8
36.7 %
Provision for Taxes on Income
The effective tax rate for the year ended December 31, 2012 was 45.1% as compared to 38.6% for the year ended December 31, 2011. The
provision for taxes on income increased $85.2 million, primarily due to higher income before income taxes, changes in geographic earnings
mix, changes in losses in certain non-U.S. jurisdictions for which tax benefits are not realized and non-deductible compensation payments
under Internal Revenue Code Section 280(G) related to the Dollar Thrifty acquisition. See Note 9 to the Notes to our audited annual
consolidated financial statements included in this Annual Report under the caption “Item 8—Financial Statements and Supplementary Data.”
Net Income Attributable to Noncontrolling Interest
Net income attributable to noncontrolling interest decreased $ 19.6 million due to Hertz's purchase of the noncontrolling interest of Navigation
Solutions, L.L.C. on December 31, 2011, thereby increasing its ownership interest from 65% to 100%.
Net Income Attributable to The Hertz Corporation and Subsidiaries' Common Stockholder
Net income attributable to The Hertz Corporation and Subsidiaries' common stockholder increased 36.7% primarily due to higher rental
volumes in our U.S. car rental, worldwide equipment rental and all other operations,disciplined cost management, lower net depreciation per
vehicle in our U.S. and international car rental operations, increased pricing in our worldwide equipment rental operations and improved
residual values on the disposal of certain used equipment, partly offset by lower pricing in our U.S. car rental and international operations.
Most revenue and expense transactions from operations outside of the United States are recorded in local currencies, which reduces the
effect of changes in exchange rates on net income.
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Source: HERTZ CORP, 10-K, March 31, 2014 Powered by Morningstar® Document Research℠
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