Hertz 2013 Annual Report Download - page 94

Table of Contents
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The unaudited pro forma financial information for the years ended December 31, 2012 and 2011 was as follows (in millions):


Actual from 09/01/11 - 12/31/11 (Donlen only)(1) $142.0
$2.0
Actual from 11/19/12 - 12/31/12 (Dollar Thrifty only)(2) 170.6
(25.9)
2012 supplemental pro forma from 1/1/12 - 12/31/12 (combined entity) (3) 10,197.4
437.3
2011 supplemental pro forma from 1/1/11 - 12/31/11 (combined entity)(4) 9,920.5
223.1
_____________________________________________
* The pro forma information has been revised to reflect the correction of errors for the years ended December 31, 2012 and 2011.
(1) Donlen's actual earnings for the four months ended December 31, 2011 was impacted by certain charges related to the amortization expense associated with
the acquired intangible assets and the fair value adjustment related to acquired software, as well as, the write-off of certain unamortized debt costs.
(2) Dollar Thrifty's actual earnings for the 43 days ended December 31, 2012 was impacted by certain charges related to the amortization expense associated
with the acquired intangible assets and non-recurring compensation costs in connection with the merger.
(3) The unaudited pro forma financial information for the year ended December 31, 2012 combines the historical results of Hertz and Dollar Thrifty for the
year ended December 31, 2012, and the effects of the pro forma adjustments listed below.
(4) The unaudited pro forma financial information for the year ended December 31, 2011 combines the historical results of Hertz, Donlen and Dollar Thrifty
for the year ended December 31, 2011, and the effects of the pro forma adjustments listed below.
The unaudited pro forma consolidated results do not purport to project the future results of operations of the combined entity nor do they reflect
the expected realization of any cost savings associated with the acquisitions. The unaudited pro forma consolidated results reflect the
historical financial information of Hertz Holdings, Donlen and Dollar Thrifty, adjusted for the following pre-tax amounts:
Pro forma adjustments - Dollar Thrifty acquisition
•Additional amortization expense (approximately $38.9 million in 2012 and $44.4 million in 2011) related to the fair value of identifiable
intangible assets acquired.
•Additional interest expense (approximately $72.7 million in 2012 and $79.1 million in 2011) associated with the new debt used to
finance the Dollar Thrifty acquisition.
•Reclassifying merger related costs from 2012 to 2011 as though the Dollar Thrifty acquisition had been consummated as of January 1,
2011.
•Reclassifying non-recurring compensation costs incurred in connection with the merger and integration costs of approximately $46.7
million from 2012 to 2011 as though the Dollar Thrifty acquisition had been consummated as of January 1, 2011.
•Reclassifying the loss from the Advantage disposition from 2012 to 2011 as though the Dollar Thrifty acquisition had been consummated
as of January 1, 2011.
•Reclassifying charges related to the impact of divesting Dollar Thrifty locations incurred in connection with the Dollar Thrifty acquisition
from 2012 to 2011.
•Impact of fair value adjustment to revenue earning equipment.
•Adjustments to eliminate the results of operations of the Advantage business and locations to be divested where Dollar Thrifty operated at
least one of its brands prior to the consummation of the Dollar Thrifty acquisition for the years ended December 31, 2012 and 2011.
•Including an estimated amount of leasing revenue to be earned by Hertz from leasing vehicles to the buyer of Advantage. The
depreciation and other expenses associated with the vehicles being leased to the buyer of Advantage have not been eliminated from the
pro forma financial statements, as their costs remain as part of Hertz's ongoing operations associated with owning such vehicles.
All of the above adjustments were adjusted for the applicable tax impact. Hertz has generally assumed a 39% tax rate when estimating the
tax impacts of the Dollar Thrifty acquisition, representing the statutory tax rate for Hertz. The
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Source: HERTZ CORP, 10-K, March 31, 2014 Powered by Morningstar® Document Research℠
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