Thrifty Car Rental 2010 Annual Report Download - page 36

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See table below for a reconciliation of certain non-GAAP financial measures to the most directly
comparable GAAP financial measure.
Reconciliation of reported GAAP pretax income (loss) per the
income statement to non-GAAP pretax income (loss):
2010 2009 2008
(in thousands)
Income (loss) before income taxes - as reported 221,418$ 81,008$ (456,801)$
(Increase) decrease in fair value of derivatives (28,694) (28,848) 36,114
Goodwill and long-lived asset impairment 1,057 2,592 366,822
Pretax income (loss) - non-GAAP 193,781$ 54,752$ (53,865)$
Merger-related expenses 22,605 - -
Non-GAAP pretax income, excluding merger-related expenses 216,386$ 54,752$ (53,865)$
Reconciliation of reported GAAP net income (loss) per the
income statement to non-GAAP net income (loss):
Net income (loss) - as reported 131,216$ 45,022$ (346,718)$
(Increase) decrease in fair value of derivatives, net of tax (a) (16,826) (16,917) 21,271
Goodwill and long-lived asset impairment, net of tax (b) 645 1,497 284,537
Net income (loss) - non-GAAP 115,035$ 29,602$ (40,910)$
Merger-related expenses, net of tax (c) 13,172 - -
Non-GAAP net income, excluding merger-related expenses 128,207$ 29,602$ (40,910)$
Reconciliation of reported GAAP diluted earnings (loss)
per share ("EPS") to non-GAAP diluted EPS:
EPS, diluted - as reported 4.34$ 1.88$ (16.22)$
EPS impact of (increase) decrease in fair value of derivatives, net of tax (0.56) (0.71) 1.00
EPS impact of goodwill and long-lived asset impairment, net of tax 0.02 0.06 13.31
EPS, diluted - non-GAAP (d) 3.80$ 1.24$ (1.91)$
EPS impact of merger-related expenses, net of tax 0.44 - -
Non-GAAP diluted EPS, excluding merger-related expenses (d) 4.24$ 1.24$ (1.91)$
Year Ended December 31,
(a) The tax effect of the (increase) decrease in fair value of derivatives is calculated using the entity-specific, U.S.
federal and blended state tax rate applicable to the derivative instruments which amounts are ($11,868,000),
($11,931,000) and $14,843,000 for the years ended December 31, 2010, 2009 and 2008, respectively.
(b) The tax effect of the goodwill and long-lived asset impairment is calculated using the tax-deductible portion of the
impairment and applying the entity-specific, U.S. federal and blended state tax rate which amounts are $412,000,
$1,095,000 and $82,285,000 for the years ended December 31, 2010, 2009 and 2008, respectively.
(c) Merger-related expenses include legal, litigation, advisory and other fees related to a potential merger transaction.
The tax effect of the merger-related expenses is calculated using the entity-specific, U.S. federal and blended state
tax rate applicable to the merger-related expenses which amount is $9,433,000 for the year ended December 31,
2010.
(d) Since each category of earnings per share is computed independently for each period, total per share amounts may
not equal the sum of the respective categories.
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