[1]

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 2010Car rental$1,020.1 $850.2 $641.9Equipment rental227.0 161.6 78.0Total reportable segments1,247.1 1,011.8 719.9Adjustments: 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.

[2]

Represents general corporate expenses, certain interest expense (including net interest on corporate debt), as well as other business activities.

[3]

Represents the increase in amortization of other intangible assets, depreciation of property and equipment and accretion of revalued liabilities relating to purchase accounting.

[4]

Represents non-cash debt charges relating to the amortization and write-off of deferred debt financing costs and debt discounts.

[5]

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.

[6]

Represents the mark-to-market adjustment on our interest rate cap.

[7]

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.

[8]

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.

[9]

Represents premiums paid to redeem our 10.5% Senior Subordinated Notes and a portion of our 8.875% Senior Notes.

[10]

Primarily represents expenses related to the withdrawal from a multiemployer pension plan, litigation accrual and expenses associated with the impact of Hurricane Sandy.