Hertz 2015 Annual Report Download - page 146

Table of Contents
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The following table sets forth the computation of basic and diluted earnings per share:

 


Basic and diluted earnings per share:
Numerator:
Net income (loss), basic $ 273
$ (82)
$ 302
Interest on Convertible Senior Notes, net of tax(a) —
—
8
Net income (loss), diluted $ 273
$ (82)
$ 310
Denominator:
Basic weighted average common shares 452
454
422
Stock options, RSUs and PSUs 4
—
7
Issuance of common stock upon conversion of Convertible Senior Notes —
—
35
Weighted average shares used to calculate diluted earnings per share 456
454
464
Antidilutive stock options, RSUs, PSUs and conversion shares 4
11
—
Earnings per share:
Basic $ 0.60
$ (0.18)
$ 0.72
Diluted $ 0.60
$ (0.18)
$ 0.67
(a) Represents interest during the period related to amounts outstanding under the Hertz Holdings' 5.25% Convertible Senior Notes due in June 2014.
Any amounts not previously converted matured in June 2014 in accordance with the terms.
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The Company has identified four reportable segments, which are organized based on the products and services provided by its operating
segments and the geographic areas in which its operating segments conduct business, as follows:
• U.S. Car Rental - rental of cars, crossovers and light trucks, as well as ancillary products and services, in the United States and consists
of the Company's United States operating segment;
• International Car Rental - rental and leasing of cars, crossovers and light trucks, as well as ancillary products and services, internationally
and consists of the Company's Europe and Other International operating segments, which are aggregated into a reportable segment based
primarily upon similar economic characteristics, products and services, customers, delivery methods and general regulatory environments;
• Worldwide Equipment Rental - rental of industrial construction, material handling and other equipment and consists of the Company's
worldwide equipment rental operating segment; and
• All Other Operations - includes the Company's Donlen operating segment which provides fleet leasing and fleet management services and
is not considered a separate reportable segment in accordance with applicable accounting standards, together with other business
activities.
In addition to the above reportable segments, the Company has corporate operations ("Corporate") which includes general corporate assets and
expenses and certain interest expense (including net interest on corporate debt).
Adjusted pre-tax income (loss) is calculated as income (loss) before income taxes plus non-cash acquisition accounting charges, debt-related
charges relating to the amortization and write-off of debt financing costs and debt discounts and certain one-time charges and non-operational
items. Adjusted pre-tax income (loss) is important because it allows management to assess operational performance of its business, exclusive of
the items mentioned above. It also allows management to assess the performance of the entire business on the same basis as the segment
measure of profitability. Management believes that it is important to investors for the same reasons it is important to management and because it
allows them to assess the Company's operational performance on the same basis that management uses internally.
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