Hertz 2013 Annual Report Download - page 84

Table of Contents
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Total revenues
$2,318.5
$1.2
$2,319.7
Direct operating
1,250.6
7.1
1,257.7
Depreciation of revenue earning
equipment and lease charges
553.8
(3.8)
550.0
Selling, general and
administrative
330.3
0.7
331.0
Loss before income taxes
(26.9)
(2.8)
(29.7)
(Provision) benefit for taxes on
income
(1.4)
2.4
1.0
Net income (loss) attributable to
The Hertz Corporation and
Subsidiaries' common
stockholder
(28.3)
(0.4)
(28.7)
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* Refer to explanations (a) through (c) mentioned above for the year ended December 31, 2012.
Acquisition Accounting
We account for business combinations using the acquisition method, which requires an allocation of the purchase price of an acquired entity
to the assets acquired and liabilities assumed based on their estimated fair values at the date of acquisition. Goodwill represents the excess
of the purchase price over the net tangible and intangible assets acquired.
Revenue Recognition
Rental and rental related revenue (including cost reimbursements from customers where we consider ourselves to be the principal versus
an agent) are recognized over the period the revenue earning equipment is rented or leased based on the terms of the rental or leasing
contract. Maintenance management administrative fees are recognized monthly and maintenance management service revenue is
recognized when services are performed. Revenue related to new equipment sales and consumables is recognized at the time of delivery to,
or pick-up by, the customer and when collectability is reasonably assured. Fees from our franchisees are recognized over the period the
underlying franchisees' revenue is earned (over the period the franchisees' revenue earning equipment is rented). Certain truck and
equipment leases are originated with the intention of syndicating to banks, and upon the sale of rights to these direct financing leases, the net
gain is recorded in revenue.
Sales tax amounts collected from customers have been recorded on a net basis.
Cash and Cash Equivalents and Other
We consider all highly liquid debt instruments purchased with an original maturity of three months or less to be cash equivalents.
Restricted Cash and Cash Equivalents
Restricted cash and cash equivalents includes cash and cash equivalents that are not readily available for our normal disbursements.
Restricted cash and cash equivalents are restricted for the purchase of revenue earning vehicles and other specified uses under our Fleet
Debt facilities, for our Like-Kind Exchange Program, or “LKE Program,” and to satisfy certain of our self-insurance regulatory reserve
requirements. These funds are primarily held in highly rated money market funds with investments primarily in government and corporate
obligations. Restricted cash and cash equivalents are excluded from cash and cash equivalents.
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Source: HERTZ CORP, 10-K, March 31, 2014 Powered by Morningstar® Document Research℠
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