Hertz 2014 Annual Report Download - page 79

Table of Contents

 

             The effective tax rate for the fourth quarter
2014 was 18% compared with an effective tax rate of 146% in the fourth quarter 2013. The change is due primarily to a $284 million loss before
income taxes in the fourth quarter 2014 as compared to income before income taxes of $39 million in the fourth quarter 2013, as well as reduced
losses in certain non-U.S. jurisdictions for which tax benefits are not realized, offset by expiration of the favorable Subpart F provision of the U.S.
Federal Tax Law and non-deductible transaction costs related to the anticipated HERC spin-off transaction.
             The effective tax rate for the third quarter
2014 was 27% compared with 35% in the third quarter 2013. The provision for taxes on income decreased $56 million due primarily to lower
income before income taxes and reduced losses in certain non-U.S. jurisdictions for which tax benefits are not realized, offset by expiration of the
favorable Subpart F provision of the U.S. Federal Tax Law as well as non-deductible transaction costs related to the anticipated HERC spin-off
transaction.
The effective tax rate for the second quarter 2014 was
40% compared with 42% in the second quarter 2013. The provision for taxes on income decreased $32 million due primarily to lower income before
income taxes, losses in certain non-U.S. jurisdictions for which tax benefits are not realized, expiration of the favorable Subpart F provision of the
U.S. Federal Tax Law and non-deductible transaction costs related to the anticipated HERC spin-off transaction.
       The effective tax rate for the first quarter 2014 was
(11)% compared with 90% in the first quarter 2013. The provision for taxes on income decreased $46 million due primarily to loss before income
taxes in the first quarter 2014 as compared to income before income taxes in 2013 as well as losses in certain non-U.S. jurisdictions for which tax
benefits are not realized, expiration of the favorable Subpart F provision of the U.S. Federal Tax Law and non-deductible transaction costs related
to the anticipated HERC spin-off transaction.

We had adjusted pre-tax loss of $161 million in
the fourth quarter 2014 as compared to adjusted pre-tax income of $157 million in the fourth quarter 2013.
             Adjusted pre-tax income decreased $185
million, or 36% from the prior year.
Adjusted pre-tax income decreased $80 million, or 27%
from the prior year.
       Adjusted pre-tax income decreased $112 million, or
82% from the prior year.

Our U.S. and international operations are funded by cash provided by operating activities and by extensive financing arrangements maintained by
us in the U.S. and internationally.
As of December 31, 2014, $226 million of our $490 million cash and cash equivalents and $59 million of our $571 million restricted cash was held
by our subsidiaries outside of the United States and Canada. Generally, our intent is to use cash held in these foreign subsidiaries to fund our local
operations or acquisitions by those local subsidiaries.

As of December 31, 2014, we had cash and cash equivalents of $490 million, an increase of $79 million from $411
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Source: HERTZ GLOBAL HOLDINGS INC, 10-K, July 16, 2015 Powered by Morningstar® Document Research℠
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