Hertz 2013 Annual Report Download - page 93

Table of Contents
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recorded in connection with this transaction is not deductible for income tax purposes. All such goodwill is reported in the U.S. car rental
segment.
Donlen Acquisition
On September 1, 2011, Hertz acquired 100% of the equity of Donlen, a leading provider of fleet leasing and management services. Donlen
provides Hertz with an immediate leadership position in long-term car, truck and equipment leasing and fleet management, which enables
us to present our customers a complete portfolio of transportation solutions and the enhanced ability to cross sell to each others' customer
base. This transaction is part of the overall growth strategy of Hertz to provide the most flexible transportation programs for corporate and
general consumers. Additionally, Donlen brings to Hertz a specialized consulting and technology expertise that will enable us to model,
measure and manage fleet performance more effectively and efficiently. The combination of the strategic fit and expected fleet synergies
described above are the primary drivers behind the excess purchase price paid over the fair value of the assets and liabilities acquired. All
such goodwill recognized as part of this acquisition is reported in our all other operations segment.
The total purchase price was $250 million. None of the goodwill recognized as part of this acquisition is expected to be deductible for tax
purposes.
The following summarizes the fair values of the assets acquired and liabilities assumed as of the acquisition date (in millions):
Cash and cash equivalents $35.6
Receivables 64.0
Prepaid expenses and other assets 7.0
Revenue earning equipment 1,120.6
Property and equipment 13.5
Other intangible assets 75.0
Goodwill 51.1
Accounts payable (39.3)
Accrued liabilities (226.8)
Deferred taxes on income (121.9)
Debt (728.8)
Total $250.0
Other intangible assets and their amortization periods are as follows:
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Customer relationships 16
$65.0
Trademark 20
7.0
Non-compete agreement 5
3.0
Total
$75.0
This transaction has been accounted for using the acquisition method of accounting in accordance with GAAP and operating results of
Donlen from the date of acquisition are included in our consolidated statements of operations. The allocation of the purchase price to the
tangible and intangible net assets acquired is complete.
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The pro forma information for December 31, 2012 and 2011 assumes that the Dollar Thrifty acquisition occurred on January 1, 2011.
The pro forma information for December 31, 2011 combines the historical results of Hertz Holdings for fiscal 2011 and the historical results of
Donlen for the period January 1 to September 1, 2011.
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Source: HERTZ CORP, 10-K, March 31, 2014 Powered by Morningstar® Document Research℠
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