Hertz 2014 Annual Report Download - page 130

Table of Contents
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The pro forma information for December 31, 2012 is unaudited and assumes that Dollar Thrifty was consolidated for the entire 2012 fiscal year.
The following 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 acquisition.
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Actual from 11/19/12 - 12/31/12 (Dollar Thrifty only)(1)
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$ 171
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$ (26)
Pro forma from 1/1/12 - 12/31/12 (combined entity - As Restated)(2)
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10,185
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350
* The pro forma information has been revised to reflect the correction of misstatements for the year ended December 31, 2012. See Note 2, "Restatement" for more
information on the restatement.
(1) Dollar Thrifty's actual earnings for the period were 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.
(2) Combines the historical results of Hertz Holdings and Dollar Thrifty including the effects of the following pro forma adjustments:
• Additional amortization expense of $39 million related to the fair value of identifiable intangible assets acquired.
• Additional interest expense of $73 million associated with the new debt used to finance the Dollar Thrifty acquisition.
• Excludes merger related costs incurred in 2012 because the pro forma information shown assumes that the Dollar Thrifty acquisition had been consummated as
of January 1, 2011.
• Excludes non-recurring compensation costs and integration costs incurred in 2012 of approximately $47 million because the pro forma information shown
assumes that the Dollar Thrifty acquisition had been consummated as of January 1, 2011.
• Excludes the loss incurred in 2012 from the Advantage disposition because the pro forma information shown assumes that the Dollar Thrifty acquisition had been
consummated as of January 1, 2011.
• Excludes 2012 charges related to the impact of divesting Dollar Thrifty locations incurred in connection with the Dollar Thrifty acquisition because the pro forma
information shown assumes that the Dollar Thrifty acquisition had been consummated as of January 1, 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.
• 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 effective tax rate of the combined company could be significantly different (either higher or lower)
depending on post-Dollar Thrifty acquisition activities, cash needs and the geographical location of businesses.
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Divestiture of Selected Dollar Thrifty Airport Locations
In order to obtain regulatory approval and clearance for the Dollar Thrifty acquisition, Hertz agreed to dispose of Advantage, and to secure for the
buyer of Advantage certain on-airport car rental concessions and related assets at certain locations where Dollar Thrifty operated at least one of its
brands. As of December 31, 2013, Hertz completed the transfer of all of these Dollar Thrifty locations and had no remaining obligations.
Advantage Divestiture
Pursuant to the terms of a purchase agreement, or the "Simply Wheelz Purchase Agreement," on December 12, 2012, Hertz completed the sale of
Simply Wheelz LLC, or the “Advantage divestiture,” a wholly owned subsidiary of Hertz
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Source: HERTZ GLOBAL HOLDINGS INC, 10-K, July 16, 2015 Powered by Morningstar® Document Research℠
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