Hertz 2014 Annual Report Download - page 78

Table of Contents

 
              SG&A increased $21 million, or 7%, due
mainly to a $13 million impairment of our former corporate headquarters, costs associated with the previously disclosed accounting review and
restatement and the anticipated HERC spin-off transaction.
SG&A decreased $23 million, or 8%, due to decreases in
administrative expenses resulting from lower bonus incentives, a reduction in accrued litigation and decreases in advertising expenses within our
U.S. Car Rental segment.
SG&A increased by $26 million, or 10%, due to a $25
million increase in administrative expenses comprised of consulting fees, restructuring charges and strategic initiatives, partially offset by a
decline in advertising expenses in our U.S. Car Rental segment.

 Interest expense, net decreased $7 million, or
4%, due mainly to lower debt outstanding as well as decreases in interest rates associated with our European Fleet Notes.
 Interest expense, net decreased $15 million,
or 8%, due mainly to lower debt outstanding as well as decreases in interest rates associated with our European Fleet Notes.
Interest expense, net decreased $18 million, or 10%, due
mainly to lower debt outstanding as well as decreases in interest rates associated with our European Fleet Notes.
Interest expense, net decreased $19 million, or 11%,
due mainly to lower debt outstanding as well as decreases in interest rates associated with our European Fleet Notes.

              Other expense was $6 million in the fourth
quarter 2014 compared with $21 million in the fourth quarter 2013. Other expense in 2014 was primarily comprised of a $14 million charge for
service equipment that was deemed to not have a future useful life, partially offset by our share of earnings from our equity method and joint
venture investments. Other expense in 2013 includes $29 million of debt extinguishment charges.
       We had other expense of $3 million in the
third quarter 2014 compared with other expense of $83 million in the third quarter 2013. Other expense in 2013 was primarily comprised of $28
million in charges related to the early conversion of a portion of our Convertible Senior Notes and a $40 million impairment charge related to
vehicles subleased to FSNA, the parent of Simply Wheelz, LLC, the owner and operator of our divested Advantage brand.
We had other income of $21 million in the second quarter
2014 compared with other income of $2 million in the second quarter 2013. Other income in the 2014 period was primarily comprised of a $19
million economic loss settlement we received in the second quarter 2014 related to a class action lawsuit filed against a vehicle manufacturer
stemming from recalls of their vehicles in previous years.
We had other income of $3 million in the first quarter
2014 compared with zero in the first quarter 2013.
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Source: HERTZ GLOBAL HOLDINGS INC, 10-K, July 16, 2015 Powered by Morningstar® Document Research℠
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