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Segment Information
 12 Months Ended
Dec. 31, 2012
Segment Reporting [Abstract]  
Segment Information
Segment Information
Our operating segments are aggregated into reportable business segments based primarily upon similar economic characteristics, products, services, customers, and delivery methods. We have identified two reportable segments: rental and leasing of cars, crossovers and light trucks, or “car rental,” and rental of industrial, construction and material handling equipment, or “equipment rental.” Other reconciling items includes general corporate assets and expenses, certain interest expense (including net interest on corporate debt), as well as other business activities, such as our third party claim management services.
Adjusted pre-tax income (loss) is the measure utilized by management in making decisions about allocating resources to segments and measuring their performance. We believe this measure best reflects the financial results from ongoing operations. Adjusted pre-tax income (loss) is calculated as income (loss) before income taxes plus other reconciling items, non-cash purchase accounting charges, non-cash debt charges and certain one-time charges and non-operational items. The contribution of our reportable segments for the years ended December 31, 2012, 2011 and 2010 is summarized below (in millions of dollars).
 
 
Years ended December 31,
 
 
2012
 
2011
 
2010
Revenues
 
 
 
 
 
 
Car rental
 
$
7,633.0

 
$
7,083.5

 
$
6,486.2

Equipment rental
 
1,385.4

 
1,209.5

 
1,070.1

Other reconciling items
 
2.4

 
5.4

 
6.2

Total
 
$
9,020.8

 
$
8,298.4

 
$
7,562.5

Adjusted pre-tax income(a)
 
 
 
 
 
 
Car rental
 
$
1,020.1

 
$
850.2

 
$
641.9

Equipment rental
 
$
227.0

 
$
161.6

 
$
78.0

Depreciation of revenue earning equipment and lease charges
 
 
 
 
 
 
Car rental
 
$
1,876.1

 
$
1,651.4

 
$
1,594.6

Equipment rental
 
272.1

 
254.3

 
273.5

Total
 
$
2,148.2

 
$
1,905.7

 
$
1,868.1

Depreciation of property and equipment
 
 
 
 
 
 
Car rental
 
$
126.9

 
$
116.1

 
$
112.3

Equipment rental
 
34.1

 
33.7

 
34.3

Other reconciling items
 
11.6

 
8.2

 
7.4

Total
 
$
172.6

 
$
158.0

 
$
154.0

Amortization of other intangible assets
 
 
 
 
 
 
Car rental
 
$
41.7

 
$
32.7

 
$
30.2

Equipment rental
 
40.6

 
35.8

 
33.4

Other reconciling items
 
1.8

 
1.5

 
1.1

Total
 
$
84.1

 
$
70.0

 
$
64.7

Interest expense
 
 
 
 
 
 
Car rental
 
$
316.3

 
$
333.1

 
$
401.3

Equipment rental
 
52.0

 
45.3

 
39.4

Other reconciling items
 
281.6

 
321.3

 
332.7

Total
 
$
649.9

 
$
699.7

 
$
773.4


 
 
Years ended December 31,
 
 
2012
 
2011
 
2010
Revenue earning equipment and property and equipment
 
 
 
 
 
 
Car rental
 
 
 
 
 
 
Expenditures
 
$
9,118.3

 
$
9,109.9

 
$
8,430.1

Proceeds from disposals
 
(7,054.4
)
 
(7,689.4
)
 
(7,432.7
)
Net expenditures
 
$
2,063.9

 
$
1,420.5

 
$
997.4

Equipment rental
 
 
 
 
 
 
Expenditures
 
$
787.6

 
$
617.5

 
$
186.1

Proceeds from disposals
 
(192.3
)
 
(213.8
)
 
(124.3
)
Net expenditures (proceeds)
 
$
595.3

 
$
403.7

 
$
61.8

Other reconciling items
 
 
 
 
 
 
Expenditures
 
$
20.1

 
$
8.6

 
$
3.9

Proceeds from disposals
 
(16.1
)
 
(1.0
)
 
(0.3
)
Net expenditures
 
$
4.0

 
$
7.6

 
$
3.6


 
 
As of December 31,
 
 
2012
 
2011
Total assets at end of year
 
 
 
 
Car rental
 
$
18,454.2

 
$
13,037.9

Equipment rental
 
3,623.0

 
3,058.9

Other reconciling items
 
1,208.8

 
1,576.7

Total
 
$
23,286.0

 
$
17,673.5

Revenue earning equipment, net, at end of year
 
 
 
 
Car rental
 
$
10,710.1

 
$
8,318.7

Equipment rental
 
2,198.2

 
1,786.7

Total
 
$
12,908.3

 
$
10,105.4

Property and equipment, net, at end of year
 
 
 
 
Car rental
 
$
1,111.3

 
$
971.3

Equipment rental
 
235.9

 
203.7

Other reconciling items
 
89.2

 
76.9

Total
 
$
1,436.4

 
$
1,251.9


We operate in the United States and in international countries. International operations are substantially in Europe. The operations within major geographic areas are summarized below (in millions of dollars):
 
 
Years ended December 31,
 
 
2012
 
2011
 
2010
Revenues
 
 
 
 
 
 
United States
 
$
6,313.4

 
$
5,413.3

 
$
4,993.7

International
 
2,707.4

 
2,885.1

 
2,568.8

Total
 
$
9,020.8

 
$
8,298.4

 
$
7,562.5



 
 
As of December 31,
 
 
2012
 
2011
Total assets at end of year
 
 
 
 
United States
 
$
18,136.7

 
$
12,730.6

International
 
5,149.3

 
4,942.9

Total
 
$
23,286.0

 
$
17,673.5

Revenue earning equipment, net, at end of year
 
 
 
 
United States
 
$
10,221.3

 
$
7,621.2

International
 
2,687.0

 
2,484.2

Total
 
$
12,908.3

 
$
10,105.4

Property and equipment, net, at end of year
 
 
 
 
United States
 
$
1,226.1

 
$
1,036.7

International
 
210.3

 
215.2

Total
 
$
1,436.4

 
$
1,251.9



(a)
The following table reconciles adjusted pre-tax income to income (loss) before income taxes for the years ended December 31, 2012, 2011 and 2010 (in millions of dollars):
 
Years Ended December 31,
Adjusted pre-tax income:
2012
 
2011
 
2010
Car rental
$
1,020.1

 
$
850.2

 
$
641.9

Equipment rental
227.0

 
161.6

 
78.0

Total reportable segments
1,247.1

 
1,011.8

 
719.9

Adjustments:
 
 
 
 
 
Other reconciling items(1)
(345.6
)
 
(331.3
)
 
(372.8
)
Purchase accounting(2)
(109.6
)
 
(87.6
)
 
(90.3
)
Non-cash debt charges(3)
(83.6
)
 
(130.4
)
 
(182.6
)
Restructuring charges
(38.0
)
 
(56.4
)
 
(54.7
)
Restructuring related charges(4)
(11.1
)
 
(9.8
)
 
(13.2
)
Derivative gains (losses)(5)
(0.9
)
 
0.1

 
(3.2
)
Acquisition related costs and charges(6)
(163.7
)
 
(18.8
)
 
(17.7
)
Management transition costs
—

 
(4.0
)
 
—

Pension adjustment(7)
—

 
13.1

 
—

Premiums paid on debt(8)
—

 
(62.4
)
 
—

Other(9)
(44.0
)
 
—

 
—

Income (loss) before income taxes
$
450.5

 
$
324.3

 
$
(14.6
)
__________________________________________________________________________
(1)
Represents general corporate expenses, certain interest expense (including net interest on corporate debt), as well as other business activities.
(2)
Represents the increase in amortization of other intangible assets, depreciation of property and equipment and accretion of revalued liabilities relating to purchase accounting.
(3)
Represents non-cash debt charges relating to the amortization and write-off of deferred debt financing costs and debt discounts.
(4)
Represents incremental costs incurred directly supporting our business transformation initiatives. Such costs include transition costs incurred in connection with our business process outsourcing arrangements and incremental costs incurred to facilitate business process re-engineering initiatives that involve significant organization redesign and extensive operational process changes.
(5)
Represents the mark-to-market adjustment on our interest rate cap.
(6)
Primarily represents Dollar Thrifty acquisition related expenses, change in control expenses, 'Day-1' compensation expenses and other adjustments related to the Dollar Thrifty acquisition, loss on the Advantage divestiture, expenses related to additional required divestitures and costs associated with the Dollar Thrifty acquisition, pre-acquisition interest and commitment fee expenses for interim financing associated with the Dollar Thrifty acquisition and a gain on the investment in Dollar Thrifty stock.
(7)
Represents a gain for the U.K. pension plan relating to unamortized prior service cost from a 2010 amendment that eliminated discretionary pension increases related to pre-1997 service primarily pertaining to inactive employees.
(8)
Represents premiums paid to redeem our 10.5% Senior Subordinated Notes and a portion of our 8.875% Senior Notes.
(9)
Primarily represents expenses related to the withdrawal from a multiemployer pension plan, litigation accrual and expenses associated with the impact of Hurricane Sandy.