Appendix
Explanation of Pro Forma Adjustments for Hertz Global Holdings, Inc./DTG
Adjustments included in the column under the heading “Pro Forma Adjustments” represent the following:
a. To adjust amortization expense for the estimated amortization expense of customer relationship intangible assets acquired, with an estimated fair value of $105 million and an estimated useful life of ten years.
b. To adjust interest expense as follows:
| Year Ended | Six Months Ended | |
| December 31, 2009 | June 30, 2010 | |
| (In thousands) | ||
| Amortization of the fair value adjustment to debt | $ 24,840 | $ 7,320 |
| Elimination of interest expense due to the extinguishment of DTG's existing non-vehicle debt(i) | (9,405) | (4,111) |
| Elimination of amortization of deferred financing costs associated with extinguished debt | (3,392) | (726) |
| Interest expense on additional borrowings under Hertz's Senior ABL facility used to partially finance the merger(ii) | 6,944 | 3,472 |
| Total | $ 18,987 | $ 5,955 |
| (i)Includes the elimination of letter of credit and commitment fees relating to DTG's revolving credit facility.(ii)Represents interest expense at an assumed current rate of 1.85% (June 30, 2010 LIBOR plus 150 basis points) net of assumed savings of 50 basis points on the drawn amount, as historical information includes a facility fee equal to 50 basis points on any available and undrawn amount. A change of one-eighth of 1% (12.5 basis points) in the interest rate associated with this variable rate borrowing would result ... | ||
