Hertz 2014 Annual Report Download - page 110

Table of Contents


reduction to pre-tax earnings was $3 million in 2013 and $2 million in 2012, respectively. The cumulative pre-tax misstatement was a decrease of
$5 million.
(r) Other Restatement Adjustments(All Segments) - There are certain other restatement matters not otherwise described in items (a) through (q) of
this Note the adjustments of which are individually insignificant but, in aggregate with all the restatement matters, are significant to the financial
statements. The cumulative pre-tax misstatement was a decrease of $53 million.
(s) Taxes on income (loss) - The tax effect of the out of period misstatements and the change in accounting principle through December 31, 2013
was approximately $100 million. The tax effect of the misstatements resulted in a reduction to income tax expense of $21 million and $24 million
for 2013 and 2012, respectively. In connection with the restatement, the Company recorded an entry, that impacted the Company’s tax
disclosures, of $141 million in 2012 and $131 million in 2013 to reclassify deferred tax assets and liabilities associated with depreciation of
intangible assets and net operating loss carryforwards.
(t) Change in Accounting Principle - In 2014, the Company changed its method of calculating the market-related value of pension assets for
purposes of determining the expected return on plan assets and accounting for asset gains and losses. The change in accounting principle was
applied retroactively to December 2005, a portion of which is a correction of an error as follows:
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
 




Correction of an error $ 3

$ —

$ —
Change in accounting principle (6)

5

12
Total increase (decrease) in pre-tax income $ (3)

$ 5

$ 12
See Note 7, "Employee Retirement Benefits" for more details.
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Source: HERTZ GLOBAL HOLDINGS INC, 10-K, July 16, 2015 Powered by Morningstar® Document Research℠
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