Selected Quarterly Financial Data

12 Months Ended

Dec. 31, 2012

Selected Quarterly Financial Data

23. Selected Quarterly Financial Data—(unaudited)

Provided below are selected unaudited quarterly financial data for 2012 and 2011.

The earnings per share information is calculated independently for each quarter based on the weighted average common stock and common stock equivalents outstanding, which may fluctuate, based on quarterly income levels and market prices. Therefore, the sum of the quarters’ per share information may not equal the annual amount presented on the Consolidated Statements of Operations.

	2012
	First(a) (b)		Second(c)		Third (d)		Fourth (a) (e)
Net revenues	$	1,623	$	1,866	$	2,170	$	1,698
Net income (loss)		(23)		79		280		(46)
Per share information:
Basic
Net income (loss)	$	(0.22)	$	0.74	$	2.62	$	(0.43)
Weighted average shares		105.9		106.7		106.8		106.9
Diluted
Net income (loss)	$	(0.22)	$	0.66	$	2.38	$	(0.43)
Weighted average shares		105.9		121.9		118.0		106.9

	2011
	First(f)		Second(g)		Third (h)		Fourth (a) (i)
Net revenues	$	1,235	$	1,412	$	1,623	$	1,630
Net income (loss)		7		52		82		(170)
Per share information:
Basic
Net income (loss)	$	0.07	$	0.49	$	0.78	$	(1.62)
Weighted average shares		104.6		105.4		105.4		105.5
Diluted
Net income (loss)	$	0.06	$	0.42	$	0.65	$	(1.62)
Weighted average shares		106.8		129.0		128.9		105.5

^(a)  As the Company incurred a loss from continuing operations for this period, all outstanding stock options, restricted stock units, stock warrants and issuable shares underlying convertible notes are anti-dilutive for such period. Accordingly, basic and diluted weighted average shares outstanding are equal for such period.

^(b)  Net income for first quarter 2012 includes $27 million ($23 million, net of tax) for costs related to the early extinguishment of corporate debt, $7 million ($5 million, net of tax) in restructuring costs, $6 million ($5 million, net of tax) for transaction-related costs primarily related to the integration of the operations of Avis Europe and $5 million ($4 million, net of tax) for amortization expense related to intangible assets recognized in the acquisition of Avis Europe.

^(c)  Net income for second quarter 2012 includes $23 million ($21 million, net of tax) for the early extinguishment of corporate debt, $12 million ($8 million, net of tax) in restructuring costs, $4 million ($2 million, net of tax) of transaction-related costs primarily related to the integration of the operations of Avis Europe and $3 million ($2 million, net of tax) for amortization expense related to intangible assets recognized in the acquisition of Avis Europe.

^(d)  Net income for third quarter 2012 includes a $128 million non-cash income tax benefit for pre-Separation taxes, $11 million ($10 million, net of tax) of transaction-related costs primarily related to the integration of the operations of Avis Europe, $7 million ($5 million, net of tax) in restructuring costs, $4 million ($3 million, net of tax) for amortization expense related to intangible assets recognized in the acquisition of Avis Europe, and $2 million ($1 million, net of tax) for the early extinguishment of corporate debt.

^(e)  Net income for fourth quarter 2012 includes $23 million ($16 million net of tax) of expense for the early extinguishment of corporate debt, $12 million ($9 million, net of tax) in restructuring costs, $13 million ($13 million, net of tax) of transaction-related costs primarily related to the integration of the operations of Avis Europe and $4 million ($2 million, net of tax) for amortization expense related to intangible assets recognized in the acquisition of Avis Europe.

^(f)  Net income for first quarter 2011 includes $7 million ($4 million, net of tax) of interest expense and $2 million ($1 million, net of tax) of transaction-related costs related to the Company’s previous efforts to acquire Dollar Thrifty.

^(g)  Net income for second quarter 2011 includes $11 million ($9 million, net of tax) of due-diligence, advisory and other expenses, and $7 million ($4 million, net of tax) of interest expense, both related to the acquisition of Avis Europe and the Company’s previous efforts to acquire Dollar Thrifty, and $23 million ($14 million, net of taxes) of losses on currency hedges related to the acquisition of Avis Europe purchase price.

^(h)  Net income for third quarter 2011 includes $47 million ($31 million, net of tax) related to due-diligence, advisory and other expenses related to the acquisition of Avis Europe and the Company’s previous efforts to acquire Dollar Thrifty, and $26 million ($16 million, net of taxes) of losses on currency hedges related to the Avis Europe purchase price.

⁽ⁱ⁾  Net income for fourth quarter 2011 includes charges of $160 million ($153 million, net of tax) related primarily to the acquisition of Avis Europe, including a $117 million ($117 million, net of tax) non-cash charge related to the unfavorable license rights acquired by the Company, $39 million ($33 million, net of tax) related to due-diligence, advisory and other expenses, and $4 million ($3 million, net of tax) for amortization expense related to intangible assets recognized in the acquisition of Avis Europe; and $5 million ($3 million, net of tax) related to the Company’s restructuring initiatives.