Hertz 2014 Annual Report Download - page 60

Table of Contents
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 
Depreciation of revenue earning equipment and lease charges, net increased $336 million, or 36%, from the prior year. This change was primarily
due to an increase in the size of our fleet resulting from the Dollar Thrifty acquisition and a deterioration in used vehicle residual values. U.S. Car
Rental segment net depreciation per unit per month decreased to $218 from $219 primarily due to a longer average hold period for the fleet
combined with the impact of $79 million of Dollar Thrifty acquisition accounting adjustments that reduced this expense compared with $12 million
of adjustments in 2012.
Income before income taxes increased $225 million, or 35%, from the prior year. This change was primarily due to the factors described above,
partially offset by an $88 million increase in SG&A expenses driven by higher marketing and co-branding expenses. SG&A is further described on
a consolidated basis in the Consolidated Results of Operations section of this MD&A.
Adjusted pre-tax income increased $220 million, or 27%, from the prior year. See footnote (b) in the "Footnotes to the Results of Operations and
Selected Operating Data by Segment Tables" for a summary and description of these adjustments on a consolidated basis.
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As of December 31, 2014, our international car rental operations had a total of approximately 5,470 corporate and franchisee locations in
approximately 144 countries including Canada, Australia, New Zealand and in the regions of Europe, Latin and South America, Caribbean, Asia,
Africa and the Middle East.
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

 
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
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
Total revenues $ 2,436
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$ 2,378
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$ 2,265
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2 %
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5 %
Direct operating expenses $ 1,491
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$ 1,407
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$ 1,347
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6
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4
Depreciation of revenue earning equipment and lease
charges, net $ 492
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$ 528
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$ 524
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(7)
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1
Income before income taxes $ 95
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$ 34
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$ 36
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179
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(6)
Adjusted pre-tax income (b) $ 144
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$ 134
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$ 83
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7
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61
Transaction days (in thousands)(c) 46,917
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45,019
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43,248
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4
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4
Total RPD(d) $ 52.86
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$ 53.31
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$ 53.09
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(1)
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—
Average Fleet (e) 166,900
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161,300
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155,100
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3
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4
Fleet efficiency (e) 77%
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76%
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76%
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N/A
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N/A
Net depreciation per unit per month (f) $ 250
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$ 275
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$ 287
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(9)
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(4)
Program cars as a percentage of average fleet at period
end 30%
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24%
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21%
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N/A
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N/A
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

Total revenues for the segment increased $58 million, or 2%, when compared with the prior year period and increased $80 million, or 3% excluding
the impact of foreign currency exchange rates. We experienced a 4% increase in transaction days, however, Total RPD for the segment
decreased 1% due mainly to the expansion of our value brands, Firefly and Thrifty, in several European countries.
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Source: HERTZ GLOBAL HOLDINGS INC, 10-K, July 16, 2015 Powered by Morningstar® Document Research℠
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