Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Mar. 10, 2017 | Jun. 30, 2016 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | HERC HOLDINGS INC. | ||
Entity Central Index Key | 1,364,479 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Public Float | $ 665.9 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 28,315,752 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
ASSETS | ||
Cash and cash equivalents | $ 11.6 | $ 15.7 |
Restricted cash and cash equivalents | 19.4 | 16 |
Receivables, net of allowance of $24.9 and $23.8, respectively | 293.3 | 287.8 |
Taxes receivable | 7.4 | 8.7 |
Inventory | 24.1 | 22.3 |
Prepaid expenses and other current assets | 15.9 | 11 |
Total current assets | 371.7 | 361.5 |
Revenue earning equipment, net | 2,390 | 2,382.5 |
Property and equipment, net | 272 | 246.6 |
Intangible assets, net | 303.9 | 300.5 |
Goodwill | 91 | 91 |
Other long-term assets | 34.7 | 14.9 |
Total assets | 3,463.3 | 3,397 |
LIABILITIES AND EQUITY | ||
Current maturities of long-term debt | 15.7 | 10.2 |
Loans payable to affiliates | 0 | 73.2 |
Accounts payable | 139 | 109.5 |
Accrued liabilities | 78.2 | 47.8 |
Taxes payable | 10 | 41.6 |
Total current liabilities | 242.9 | 282.3 |
Long-term debt | 2,178.6 | 53.3 |
Deferred taxes | 692.1 | 727.3 |
Other long-term liabilities | 32 | 32.1 |
Total liabilities | 3,145.6 | 1,095 |
Commitments and contingencies | ||
Equity: | ||
Preferred stock, $0.01 par value, 13.3 shares authorized, no shares issued and outstanding | 0 | 0 |
Common stock, $0.01 par value, 133.3 shares authorized, 31.0 and 30.9 shares issued and 28.3 and 28.2 shares outstanding | 0.3 | 0.3 |
Additional paid-in capital | 1,753.3 | 3,734.6 |
Accumulated deficit | (625.2) | (605.5) |
Accumulated other comprehensive loss | (118.7) | (135.4) |
Treasury stock, at cost, 2.7 shares and 2.7 shares | (692) | (692) |
Total equity | 317.7 | 2,302 |
Total liabilities and equity | $ 3,463.3 | $ 3,397 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Receivables, allowance for doubtful accounts | $ 24.9 | $ 23.8 |
Preferred Stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Preferred Stock, shares authorized (in shares) | 13,300,000 | 13,300,000 |
Preferred Stock, shares issued (in shares) | 0 | 0 |
Preferred Stock, shares outstanding (in shares) | 0 | 0 |
Common Stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Common Stock, shares authorized (in shares) | 133,300,000 | 133,300,000 |
Common Stock, shares issued (in shares) | 31,000,000 | 30,900,000 |
Common Stock, shares outstanding (in shares) | 28,300,000 | 28,200,000 |
Treasury Stock, shares (in shares) | 2,700,000 | 2,700,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues: | |||
Equipment rentals | $ 1,352.7 | $ 1,411.7 | $ 1,455.8 |
Sales of revenue earning equipment | 122.5 | 161.2 | 198.7 |
Sales of new equipment, parts and supplies | 68.2 | 92.1 | 95.4 |
Service and other revenues | 11.4 | 13.2 | 20.5 |
Total revenues | 1,554.8 | 1,678.2 | 1,770.4 |
Expenses: | |||
Direct operating | 651.4 | 711.2 | 716.1 |
Depreciation of revenue earning equipment | 350.5 | 343.7 | 340 |
Cost of sales of revenue earning equipment | 144 | 146.8 | 188.4 |
Cost of sales of new equipment, parts and supplies | 53 | 73 | 77.5 |
Selling, general and administrative | 275 | 265.5 | 251.4 |
Restructuring | 4 | 4.3 | 5.7 |
Impairment | 0 | 0 | 9.6 |
Interest expense, net | 84.2 | 32.9 | 41.4 |
Other income, net | (2.4) | (56.1) | (4.2) |
Total expenses | 1,559.7 | 1,521.3 | 1,625.9 |
Income (loss) before income taxes | (4.9) | 156.9 | 144.5 |
Income tax expense | (14.8) | (45.6) | (54.8) |
Net income (loss) | $ (19.7) | $ 111.3 | $ 89.7 |
Weighted average shares outstanding: | |||
Basic (in shares) | 28.3 | 30.2 | 30.3 |
Diluted (in shares) | 28.3 | 30.2 | 31.6 |
Earnings (loss) per share: | |||
Basic (in USD per share) | $ (0.70) | $ 3.69 | $ 3 |
Diluted (in USD per share) | $ (0.70) | $ 3.69 | $ 2.87 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ (19.7) | $ 111.3 | $ 89.7 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | 15.8 | (56.8) | 2.7 |
Reclassification of foreign currency items to other income (expense) | 0 | (41.6) | 0 |
Pension and postretirement benefit liability adjustments: | |||
Amortization of net losses (gains), settlement losses and curtailment gains included in net periodic pension cost | 1.4 | 0.5 | (2.3) |
Pension and postretirement benefit liability adjustments arising during the period | 0.1 | (8.1) | (1.4) |
Income tax (provision) benefit related to pension and postretirement plans | (0.6) | 2.9 | 1.6 |
Total other comprehensive income (loss) | 16.7 | (103.1) | 0.6 |
Total comprehensive income (loss) | $ (3) | $ 8.2 | $ 90.3 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Millions | Total | Common Stock | Additional Paid-In Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Income (Loss) | Treasury Stock |
Beginning balance (in shares) at Dec. 31, 2013 | 29,700,000 | |||||
Beginning balance at Dec. 31, 2013 | $ 1,877.4 | $ 0.3 | $ 2,804 | $ (806.5) | $ (32.9) | $ (87.5) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 89.7 | 89.7 | ||||
Other comprehensive income | 0.6 | 0.6 | ||||
Employee stock purchase plan | 3.9 | 3.9 | ||||
Net settlement on vesting of equity awards (in shares) | 100,000 | |||||
Net settlement on vesting of equity awards | (16.5) | (16.5) | ||||
Stock-based compensation charges | 1.4 | 1.4 | ||||
Exercise of stock options (in shares) | 100,000 | |||||
Exercise of stock options and other | 18 | 18 | ||||
Common shares issued to directors | 0.6 | 0.6 | ||||
Conversion of convertible notes (in shares) | 700,000 | |||||
Conversion of convertible notes | 84.4 | 84.4 | ||||
Capital contributions from affiliates | 28.8 | 28.8 | ||||
Distribution and net transfers to THC | (394.6) | (394.6) | ||||
Ending balance (in shares) at Dec. 31, 2014 | 30,600,000 | |||||
Ending balance at Dec. 31, 2014 | 1,693.7 | $ 0.3 | 2,530 | (716.8) | (32.3) | (87.5) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 111.3 | 111.3 | ||||
Other comprehensive income | (103.1) | (103.1) | ||||
Net settlement on vesting of equity awards (in shares) | 100,000 | |||||
Net settlement on vesting of equity awards | (5) | (5) | ||||
Stock-based compensation charges | 2.7 | 2.7 | ||||
Exercise of stock options and other | $ 5.1 | 5.1 | ||||
Share repurchase (in shares) | (2,500,000) | (2,500,000) | ||||
Share repurchase | $ (604.5) | (604.5) | ||||
Capital contributions from affiliates | 198.8 | 198.8 | ||||
Distribution and net transfers to THC | 1,003 | 1,003 | ||||
Ending balance (in shares) at Dec. 31, 2015 | 28,200,000 | |||||
Ending balance at Dec. 31, 2015 | 2,302 | $ 0.3 | 3,734.6 | (605.5) | (135.4) | (692) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (19.7) | (19.7) | ||||
Other comprehensive income | 16.7 | 16.7 | ||||
Net settlement on vesting of equity awards | (0.5) | (0.5) | ||||
Stock-based compensation charges | $ 5.5 | 5.5 | ||||
Exercise of stock options (in shares) | 16,702 | 100,000 | ||||
Exercise of stock options and other | $ 10 | 10 | ||||
Distribution and net transfers to THC | (1,996.3) | (1,996.3) | ||||
Ending balance (in shares) at Dec. 31, 2016 | 28,300,000 | |||||
Ending balance at Dec. 31, 2016 | $ 317.7 | $ 0.3 | $ 1,753.3 | $ (625.2) | $ (118.7) | $ (692) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities: | |||
Net income (loss) | $ (19.7) | $ 111.3 | $ 89.7 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation of revenue earning equipment | 350.5 | 343.7 | 340 |
Depreciation of property and equipment | 39.7 | 39.6 | 36.3 |
Amortization of intangible assets | 5.1 | 37.6 | 38.8 |
Amortization of deferred financing costs | 5.6 | 4.5 | 6.2 |
Stock-based compensation charges | 5.5 | 2.7 | 1.4 |
Gain on disposal of business | 0 | (50.9) | 0 |
Impairment | 0 | 0 | 9.6 |
Provision for receivables allowance | 44.4 | 42.8 | 37.4 |
Inventory provisions | 4.2 | 7.9 | 7.8 |
Deferred taxes | 12.3 | 22.3 | 33.4 |
Loss (gain) on sale of revenue earning equipment | 21.5 | (14.4) | (10.3) |
Gain on sale of property and equipment | (1.1) | (1.7) | (2.2) |
Income from joint ventures | (2.3) | (4.1) | (4.7) |
Other | 5.5 | 3.1 | (1.4) |
Changes in assets and liabilities: | |||
Receivables | (59.2) | (20.1) | (59.5) |
Inventory, prepaid expenses and other assets | (20.3) | (20.7) | (8.2) |
Accounts payable | 9.2 | (5.2) | (28.8) |
Accrued liabilities and other long-term liabilities | 34.9 | (5.5) | (11.3) |
Taxes receivable and payable | (2.4) | 3.4 | (5) |
Net cash provided by operating activities | 433.4 | 496.3 | 469.2 |
Cash flows from investing activities: | |||
Net change in restricted cash and cash equivalents | (3.4) | 3.3 | 33.5 |
Revenue earning equipment expenditures | (468.3) | (600) | (614.5) |
Proceeds from disposal of revenue earning equipment | 115.4 | 151.9 | 179.6 |
Non-rental capital expenditures | (47.8) | (76.9) | (43.7) |
Proceeds from disposal of property and equipment | 5.7 | 6 | 15.8 |
Proceeds from disposal of business | 0 | 126.4 | 0 |
Other investing activities | 0 | (0.5) | 0 |
Net cash used in investing activities | (398.4) | (389.8) | (429.3) |
Cash flows from financing activities: | |||
Proceeds from issuance of long-term debt | 1,235 | 0 | 0 |
Proceeds under revolving line of credit | 1,791 | 1,865 | 2,480 |
Repayments under revolving line of credit | (881) | (2,208.6) | (2,425.3) |
Principal payments under capital lease obligations | (12.4) | (10) | (9.6) |
Proceeds from exercise of stock options | 10 | 5.1 | 18 |
Proceeds from employee stock purchase plan | 0 | 0 | 3.4 |
Net settlement on vesting of restricted stock | (0.5) | (5) | (16.5) |
Purchase of treasury stock | 0 | (604.5) | 0 |
Capital contributions from affiliates | 0 | 198.8 | 28.8 |
Distributions and net transfers with THC | (2,071.9) | 1,003 | (394.6) |
Net financing activities with affiliates | (67.4) | (349.2) | 281.8 |
Capital contributions from affiliates | (41.5) | 0 | 0 |
Net cash used in financing activities | (38.7) | (105.4) | (34) |
Effect of foreign exchange rate changes on cash and cash equivalents | (0.4) | (4.3) | (2.4) |
Net increase (decrease) in cash and cash equivalents during the period | (4.1) | (3.2) | 3.5 |
Cash and cash equivalents at beginning of period | 15.7 | 18.9 | 15.4 |
Cash and cash equivalents at end of period | 11.6 | 15.7 | 18.9 |
Supplemental disclosures of cash flow information: | |||
Cash paid for interest, net of amounts capitalized | 70.7 | 27.7 | 36.1 |
Cash paid for income taxes, net of refunds | 2.9 | 10.1 | 23.6 |
Supplemental disclosures of non-cash investing activity: | |||
Purchases of revenue earning equipment in accounts payable | 15.1 | 0 | 0 |
Purchases of non-rental capital expenditures in accounts payable | 7.8 | 0 | 9.1 |
Supplemental disclosures of non-cash financing activity: | |||
Non-cash settlement of transactions with THC through equity | 75.6 | 0 | 0 |
Conversion of convertible senior notes | 0 | 0 | 84.4 |
Supplemental disclosures of non-cash investing and financing activity: | |||
Equipment acquired through capital lease | $ 20.3 | $ 0 | $ 6.4 |
Background
Background | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Background | Background Herc Holdings Inc. ("Herc Holdings" or the "Company") is one of the leading equipment rental suppliers with approximately 270 company-owned locations at December 31, 2016, principally in North America. It conducts substantially all of its operations through subsidiaries, including Herc Rentals Inc. ("Herc"). Operations are conducted under the Herc Rentals brand in the United States and under the Hertz Equipment Rental brand in Canada and other international locations. The Company has been in the equipment rental business since 1965 and is a full-line equipment rental supplier in key markets, including commercial and residential construction, industrial and manufacturing, civil infrastructure, automotive, government and municipalities, energy, remediation, emergency response, facilities, entertainment and agriculture, as well as refineries and petrochemicals. The equipment rental business is supported by ProSolutions TM , the Company's industry-specific solutions-based services, and its professional grade tools, commercial vehicles, and pump, power and climate control product offerings. On June 30, 2016 , the Company, in its previous form as the holding company of both the existing equipment rental operations as well as the former vehicle rental operations (in its form prior to the Spin-Off, "Hertz Holdings"), completed a spin-off (the "Spin-Off") of its global vehicle rental business through a dividend to stockholders of all of the issued and outstanding common stock of Hertz Rental Car Holding Company, Inc., which was re-named Hertz Global Holdings, Inc. ("New Hertz") on a one-for-five basis. New Hertz is now an independent public company and trades on the New York Stock Exchange under the symbol "HTZ." New Hertz continues to operate its global vehicle rental business through its operating subsidiaries including The Hertz Corporation ("THC"). The Company changed its name to Herc Holdings Inc. on June 30, 2016 and trades on the New York Stock Exchange under the symbol "HRI." Following the Spin-Off, the Company continues to operate its global equipment rental business through its operating subsidiaries, including Herc. For accounting purposes, due to the relative significance of New Hertz to Hertz Holdings, New Hertz was considered the spinnor or divesting entity in the Spin-Off and Herc Holdings was considered the spinnee or divested entity. As a result, despite the legal form of the transaction, New Hertz was the "accounting successor" to Hertz Holdings. Under the accounting rules, the historical financial information of New Hertz is required to reflect the financial information of Hertz Holdings, as if New Hertz spun off Herc Holdings in the Spin-Off. In contrast, the historical financial information of Herc Holdings, including certain information presented in these consolidated financial statements, reflects the financial information of the equipment rental business and certain parent legal entities of Herc historically operated as part of Hertz Holdings, as if Herc Holdings was a stand-alone company for all periods presented. The historical financial information of Herc Holdings presented in these consolidated financial statements is not necessarily indicative of what Herc Holdings’ financial position or results of operations actually would have been had Herc Holdings operated as a separate, independent company for the periods presented. These consolidated financial statements consist of Herc Holdings, the top level holding company of Hertz Holdings’ equipment rental business following the Spin-Off with no material assets or stand-alone operations, and Herc and its consolidated subsidiaries. |
Basis of Presentation and Recen
Basis of Presentation and Recently Issued Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Recently Issued Accounting Pronouncements | Basis of Presentation and Recently Issued Accounting Pronouncements Basis of Presentation The Company prepares its consolidated financial statements in conformity with accounting principles generally accepted in the United States ("U.S. GAAP"). The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and footnotes. Actual results could differ materially from those estimates. Significant estimates inherent in the preparation of the consolidated financial statements include depreciation of revenue earning equipment, pension and postretirement benefits, the recoverability of long-lived assets, useful lives and impairment of long-lived tangible and intangible assets including goodwill and trade name, accounting for income taxes, valuation of stock-based compensation, reserves for litigation and other contingencies, reserves for restructuring, allowances for receivables and, prior to the Spin-Off, allocated general corporate expenses from THC, among others. This Annual Report on Form 10-K for the year ended December 31, 2016 (this "Report"), is the Company's first annual report made post-Spin-Off as a stand-alone public company comprised of only the equipment rental business. The consolidated financial statements were presented on a basis of accounting that reflected a change in reporting entity and were adjusted for the effects of the Spin-Off. The consolidated financial statements represent only those operations, assets, liabilities and equity that form Herc Holdings on a stand-alone basis. Since the Spin-Off occurred on June 30, 2016 , the financial statements in this Report represent the carve-out financial results for the first six months of 2016, including the Spin-Off impacts, and actual results for the last six months of the year ended December 31, 2016 . All prior period amounts represent carve-out financial results. Principles of Consolidation The consolidated financial statements include the accounts of Herc Holdings and its wholly owned subsidiaries. In the event that the Company is a primary beneficiary of a variable interest entity, the assets, liabilities and results of operations of the variable interest entity are included in the Company's consolidated financial statements. The Company accounts for its investments in joint ventures using the equity method when it has significant influence but not control and is not the primary beneficiary. All significant intercompany transactions have been eliminated in consolidation. Transactions between the Company and THC and its affiliates prior to the Spin-Off are herein referred to as "related party" or "affiliated" transactions for the periods presented. Effective with the Spin-Off on June 30, 2016 , all then existing transactions with THC and its affiliates were settled and paid in full. Effective upon the Spin-Off, the Company entered into certain agreements with New Hertz, including a transition services agreement ("TSA"). See Note 20 , " Arrangements with New Hertz " for further information. For periods prior to the Spin-Off, the consolidated financial statements include net interest expense on loans receivable and payable to affiliates and expense allocations for certain corporate functions historically performed by THC, including, but not limited to, general corporate expenses related to finance, legal, information technology, human resources, communications, employee benefits and incentives, insurance and stock-based compensation. These expenses were allocated to the Company on the basis of direct usage when identifiable, with the remainder allocated on the basis of revenues, operating expenses, headcount or other relevant measures. Management believes the assumptions underlying the consolidated financial statements, including the assumptions regarding the allocation of corporate expenses from THC, are reasonable. Nevertheless, the consolidated financial statements may not include all of the expenses that would have been incurred had the Company been a stand-alone company during the periods presented and may not reflect the Company's consolidated financial position, results of operations and cash flows had the Company been a stand-alone company during the periods presented. Actual costs that would have been incurred if the Company had been a stand-alone company would have depended on multiple factors, including organizational structure and strategic decisions made in various areas, including information technology and infrastructure. For additional information related to costs allocated to the Company by THC, see Note 19 , " Related Party Transactions ." Stock Split On June 30, 2016 , the Company effected a 1-for-15 reverse stock split. The reverse stock split reduced the number of authorized shares of common stock and preferred stock to 133.3 million and 13.3 million , respectively. All share data and per share amounts have been retroactively adjusted for the reverse stock split in the accompanying consolidated financial statements and notes thereto for all periods presented. The retroactive adjustments resulted in the reclassification of $4.3 million from common stock to additional paid-in capital on the consolidated statements of changes in equity at December 31, 2015 and December 31, 2014 and $4.2 million at December 31, 2013 . Reclassification of Prior Period Presentation Certain prior period amounts have been reclassified for consistency with the current period presentation. These reclassifications had no effect on the reported consolidated balance sheets, results of operations, equity or cash flows for any period presented. Correction of Errors During the Spin-Off and distribution process, the Company determined that certain historical balances that were attributed to Herc entities should have been attributed to THC. These classification errors were primarily caused by the historical mapping of certain entities to the Herc segment for Hertz Holdings and THC financial reporting purposes. As a result, certain historical balances related to Hertz Holdings and THC were inadvertently included in the historical carve-out financial statements of the Company. The Company assessed the materiality of these errors, both quantitatively and qualitatively, and concluded that the adjustments are not material to any prior annual or interim financial statements. The Company has revised its previously reported consolidated balance sheet, statements of other comprehensive income (loss), statements of changes in equity and statement of cash flows in this Report to correct these errors. There was no impact of these errors to the consolidated statements of operations for any period. The table below reflects the impact of the revisions to amounts included in this Report that were previously reported by the Company and also reflects the retroactive impact of the June 30, 2016 stock split, as described above under the heading " Stock Split " (in millions). December 31, 2015 As Previously Reported Adjustments Impact of Stock Split As Revised Consolidated Balance Sheets Prepaid expenses and other current assets $ 20.8 $ (9.8 ) $ — $ 11.0 Additional paid-in capital 3,843.1 (112.8 ) 4.3 3,734.6 Accumulated other comprehensive loss (238.4 ) 103.0 — (135.4 ) Year Ended December 31, 2015 As Previously Reported Adjustments As Revised Consolidated Statements of Other Comprehensive Income (Loss) Total other comprehensive income (loss) $ (136.0 ) $ 32.9 $ (103.1 ) Total comprehensive income (loss) (24.7 ) 32.9 8.2 Year Ended December 31, 2014 As Previously Reported Adjustments As Revised Consolidated Statements of Other Comprehensive Income (Loss) Total other comprehensive income (loss) $ (56.7 ) $ 57.3 $ 0.6 Total comprehensive income (loss) 33.0 57.3 90.3 December 31, 2015 As Previously Reported Adjustments Impact of Stock Split As Revised Consolidated Statements of Changes in Equity Additional paid-in capital $ 3,843.1 $ (112.8 ) $ 4.3 $ 3,734.6 Accumulated other comprehensive loss (238.4 ) 103.0 — (135.4 ) December 31, 2014 As Previously Reported Adjustments Impact of Stock Split As Revised Consolidated Statements of Changes in Equity Additional paid-in capital $ 2,607.4 $ (81.7 ) $ 4.3 $ 2,530.0 Accumulated other comprehensive loss (102.4 ) 70.1 — (32.3 ) December 31, 2013 As Previously Reported Adjustments Impact of Stock Split As Revised Consolidated Statements of Changes in Equity Additional paid-in capital $ 2,812.6 $ (12.8 ) $ 4.2 $ 2,804.0 Accumulated other comprehensive loss (45.7 ) 12.8 — (32.9 ) Year Ended December 31, 2015 As Previously Reported Adjustments As Revised Consolidated Statements of Cash Flows Net cash provided by operating activities $ 498.1 $ (1.8 ) $ 496.3 Net cash used in financing activities (107.2 ) 1.8 (105.4 ) Year Ended December 31, 2014 As Previously Reported Adjustments As Revised Consolidated Statements of Cash Flows Net cash provided by operating activities $ 457.6 $ 11.6 $ 469.2 Net cash used in financing activities (22.4 ) (11.6 ) (34.0 ) Additionally, the Company has revised its consolidated statement of operations for the years ended December 31, 2015 and 2014 to correct the recording of $5.0 million of expense from selling, general and administrative expense into direct operating expense and $2.8 million from direct operating expense into selling, general and administrative expense, respectively, which did not impact net income (loss). The correction resulted from incorrect mapping of certain expense accounts to the financial statement line items. The Company has revised its “Cash Paid for Interest” supplemental disclosures for the years ended December 31, 2015 and 2014 to correct immaterial overstatements of $23.7 million and $10.8 million , respectively, which impacted the supplemental disclosures, but did not impact the consolidated statements of cash flows. The correction of the disclosure resulted from incorrect mapping of certain interest accounts. Cash and Cash Equivalents Cash and cash equivalents include cash on hand and highly liquid investments with an original maturity of three months or less. Restricted Cash and Cash Equivalents Restricted cash and cash equivalents includes cash and cash equivalents that are not readily available for the Company's normal disbursements. Restricted cash and cash equivalents are restricted for the purchase of revenue earning equipment under the Company's Like-Kind Exchange Program ("LKE Program"). See "Income Taxes" below for additional information related to the LKE Program. Concentration of Credit Risk The Company's cash and cash equivalents are held in checking accounts, various investment grade institutional money market accounts or bank term deposits. Deposits held at banks may exceed the amount of insurance provided on such deposits. Generally, these deposits may be redeemed upon demand and are maintained with financial institutions with reputable credit and therefore bear minimal credit risk. The Company seeks to mitigate such risks by spreading the risk across multiple counterparties and monitoring the risk profiles of these counterparties. In addition, the Company has credit risk from financial instruments used in hedging activities. The Company limits its exposure relating to financial instruments by diversifying the financial instruments among various counterparties, which consist of major financial institutions. No single customer accounted for more than 3% of the Company’s rental revenues during the years ended December 31, 2016, 2015 and 2014 . As of December 31, 2016 and 2015 , no single customer accounted for more than 3% of accounts receivable. Receivables Receivables are stated net of allowances and represent credit extended to customers and manufacturers that satisfy defined credit criteria. The estimate of the allowance for doubtful accounts is based on the Company's historical experience and its judgment as to the likelihood of ultimate collection. Actual receivables are written-off against the allowance for doubtful accounts when the Company determines the balance will not be collected. Estimates for future credit memos are based on historical experience and are reflected as reductions to revenue, while bad debt expense is reflected as a component of "Selling, general and administrative expenses" in the Company's consolidated statements of operations. Inventory Inventory is comprised of finished goods and consists of new equipment, supplies, tools, parts, fuel and related supply items. Inventory is stated at the lower of cost or market. Cost is determined by inventory type on the average cost method. Revenue Earning Equipment Revenue earning equipment is stated at cost, net of related discounts, with holding periods ranging from two to 15 years. Generally, when revenue earning equipment is acquired, the Company estimates the period that it will hold the asset, primarily based on historical measures of the amount of rental activity (e.g. equipment usage) and the targeted age of equipment at the time of disposal. The Company also estimates the residual value of the applicable revenue earning equipment at the expected time of disposal. The residual value for rental equipment is affected by factors which include equipment age and amount of usage. Depreciation is recorded over the estimated holding period. Depreciation rates are reviewed on a quarterly basis based on management's ongoing assessment of present and estimated future market conditions, their effect on residual values at the time of disposal and the estimated holding periods. Market conditions for used equipment sales can also be affected by external factors such as the economy, natural disasters, fuel prices, the market price for similar new equipment and incentives offered by manufacturers of new equipment. These key factors are considered when estimating future residual values and assessing depreciation rates. As a result of this ongoing assessment, the Company makes periodic adjustments to depreciation rates of revenue earning equipment in response to changed market conditions. For certain equipment at or nearing the end of its useful life, the Company considers the option of refurbishing the equipment as an alternative to replacing it based upon the economics of each alternative. Refurbishment costs that extend the useful life of the asset are capitalized and amortized over the remaining useful life of the asset. During 2014, the Company decided to sell certain revenue earning equipment which had been categorized as held for sale. As a result, the Company determined the fair value of these assets and recorded an impairment charge of $9.6 million . Property and Equipment Property and equipment are stated at cost and are depreciated utilizing the straight-line method over the estimated useful lives of the related assets. Leasehold improvements are amortized over the estimated useful lives of the related assets or leases, whichever is shorter. Useful lives are as follows: Buildings 8 to 33 years Service vehicles 3 to 13 years Machinery and equipment 1 to 15 years Computer equipment 1 to 5 years Furniture and fixtures 2 to 10 years Leasehold improvements The lesser of the economic life or the lease term The Company follows the practice of charging routine maintenance and repairs, including the cost of minor replacements, to maintenance expense. Costs of major replacements are capitalized and depreciated. Public Liability and Property Damage The obligation for public liability and property damage on self-insured U.S. and international equipment represents an estimate for both reported accident claims not yet paid, and claims incurred but not yet reported. The related liabilities are recorded on a non-discounted basis. Reserve requirements are based on actuarial evaluations of historical accident claim experience and trends, as well as future projections of ultimate losses, expenses, premiums and administrative costs. The adequacy of the liability is regularly monitored based on evolving accident claim history and insurance-related state legislation changes. If the Company's estimates change or if actual results differ from these assumptions, the amount of the recorded liability is adjusted to reflect these results. Defined Benefit Pension Plans and Other Employee Benefits The Company's employee pension costs and obligations are developed from actuarial valuations. Inherent in these valuations are key assumptions, including discount rates, salary growth, long-term return on plan assets, retirement rates, mortality rates and other factors. The selection of assumptions is based on historical trends and known economic and market conditions at the time of valuation, as well as independent studies of trends performed by actuaries. However, actual results may differ substantially from the estimates that were based on the critical assumptions. The Company uses a December 31 measurement date for all of the plans. Actual results that differ from the Company's assumptions are accumulated and amortized over future periods and, therefore, generally affect its recognized expense in such future periods. While management believes that the assumptions used are appropriate, significant differences in actual experience or significant changes in assumptions would affect the Company's pension costs and obligations. The Company maintains reserves for employee medical claims, up to its insurance stop-loss limit, and workers' compensation claims. These are regularly evaluated and revised, as needed, based on a variety of information, including historical experience, actuarial estimates and current employee statistics. Restructuring Business restructuring charges include (i) one-time termination benefits related to employee separations, (ii) contract terminations costs and/or (iii) other costs associated with exit or disposal activities including, but not limited to, costs for consolidating or closing facilities and relocating employees and are recognized at fair value when management has committed to a restructuring plan. Foreign Currency Translation and Transactions Assets and liabilities of international subsidiaries whose functional currency is the local currency are translated at the rate of exchange in effect on the balance sheet date; income and expenses are translated at the average exchange rates throughout the year. The related translation adjustments are reflected in “Accumulated other comprehensive income (loss)” in the equity section of the Company's consolidated balance sheets. Foreign currency gains and losses resulting from transactions are included in earnings. Financial Instruments The Company is exposed to a variety of market risks, including the effects of changes in gasoline and diesel fuel prices and foreign currency exchange rates. The Company manages exposure to these market risks through ongoing processes to monitor the impact of market changes and, when deemed appropriate, through the use of financial instruments. Financial instruments are viewed as risk management tools and have not been used for speculative or trading purposes. The Company accounts for all derivatives in accordance with U.S. GAAP, which requires that they be recorded on the balance sheet as either assets or liabilities measured at their fair value. For financial instruments that are designated and qualify as hedging instruments, the Company designates the hedging instrument, based upon the exposure being hedged, as either a fair value hedge or a cash flow hedge. The effective portion of changes in fair value of financial instruments designated as cash flow hedging instruments is recorded as a component of other comprehensive income (loss). Amounts included in accumulated other comprehensive income (loss) for cash flow hedges are reclassified into earnings in the same period that the hedged item is recognized in earnings. The ineffective portion of changes in the fair value of financial instruments designated as cash flow hedges is recognized currently in earnings within the same line item as the hedged item, based upon the nature of the hedged item. For financial instruments that are not part of a qualified hedging relationship, the changes in their fair value are recognized currently in earnings. Goodwill and Indefinite-Lived Intangible Assets On an annual basis and at interim periods when circumstances require, the Company tests the recoverability of its goodwill. The Company utilizes the two-step impairment analysis and elects not to use the qualitative assessment or "Step Zero" approach. In the two-step impairment analysis, the Company has one reporting unit and compares the carrying value of its reporting unit to its fair value. If the carrying value of the reporting unit is greater than its fair value, the second step is performed, where the implied fair value of goodwill is compared to its carrying value. The Company recognizes an impairment charge for the amount by which the carrying amount of goodwill exceeds its implied fair value. The fair value of the reporting unit is estimated using the net present value of discounted cash flows expected to be generated by the reporting unit and incorporates various assumptions related to discount and growth rates specific to the reporting unit. The Company’s discounted cash flows are based upon reasonable and appropriate assumptions, which are weighted for their likely probability of occurrence, about the underlying business activities of the Company. In certain instances, the Company uses earnings multiples based on published earnings multiples of comparable entities with similar operations and economic characteristics. Indefinite-lived intangible assets, primarily trademarks, are not amortized but are evaluated annually for impairment and whenever events or changes in circumstances indicate that the carrying amount of this asset may exceed its fair value. If the carrying value of an indefinite-lived intangible asset exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. Finite-Lived Intangible and Long-Lived Assets Intangible assets include technology, customer relationships, trade names and other intangibles. Intangible assets with finite lives are amortized using the straight-line method over the estimated economic lives of the assets, which range from five to 10 years. Long-lived assets, including intangible assets with finite lives, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Determination of recoverability is based on an estimate of undiscounted future cash flows resulting from the use of the asset and its eventual disposition. Measurement of an impairment loss for long-lived assets that management expects to hold and use is based on the estimated fair value of the asset. Long-lived assets to be disposed of are reported at the lower of carrying amount or estimated fair value less costs to sell. Revenue Recognition Equipment rental revenue includes revenues generated from renting equipment to customers and is recognized on a straight-line basis over the length of the rental contract. Also included in equipment rental revenue are fees for equipment delivery and pick-up and fees for the rental protection program which allows customers to limit the risk of financial loss in the event the Company's equipment is damaged or lost. Delivery and pick-up fees are recognized as revenue when the services are performed and fees related to the rental protection program are recognized over the length of the contract term. Provisions for discounts, rebates to customers and other adjustments are provided for in the period the related revenue is recorded. Revenues from the sale of revenue earning equipment, new equipment, parts and supplies are recognized at the time the customer takes possession, when collectability is reasonably assured and when all obligations under the sales contract have been fulfilled. Sales tax amounts collected from customers and remitted to governmental authorities are accounted for on a net basis and therefore excluded from revenue. The Company generally recognizes revenue from the sale of new equipment purchased from other companies based on the gross amount billed as the Company establishes its own pricing and retains related inventory risk, is the primary obligor in sales transactions with its customers, and assumes the credit risk for amounts billed to its customers. Service and other revenue is recognized as the services are performed. Advertising Advertising and sales promotion costs are expensed the first time the advertising or sales promotion takes place. Advertising costs are reflected as a component of "Selling, general and administrative" expense in the Company's consolidated statements of operations. For the years ended December 31, 2016, 2015 and 2014 , advertising costs were $3.6 million , $2.9 million and $3.3 million , respectively. Stock Based Compensation Under the Company's stock based compensation plans, certain employees have received grants of restricted stock units, performance stock units and stock options for Herc Holdings common stock. The Company measures the cost of employee services received in exchange for an award of equity instruments based on the grant date fair value of the award. That cost is recognized over the period during which the employee is required to provide service in exchange for the award. The Company has estimated the fair value of options issued at the date of grant using a Black-Scholes option-pricing model, which includes assumptions related to volatility, expected term, dividend yield and risk-free interest rate. The Company accounts for restricted stock unit and performance stock unit awards as equity classified awards. For restricted stock units, the expense is based on the grant date fair value of the stock and the number of shares that vest, recognized over the service period. For performance stock units, the expense is based on the grant date fair value of the stock, recognized over a two to four year service period depending upon the applicable performance condition. For performance stock units, the Company re-assesses the probability of achieving the applicable performance condition each reporting period and adjusts the recognition of expense accordingly. Income Taxes The Company’s operations are subject to U.S. federal, state and local, and foreign income taxes, portions of which have historically been included in the Hertz Holdings consolidated U.S. federal income tax return, along with certain state and local and foreign income tax returns. In preparing its combined financial statements for periods prior to the Spin-Off, the Company has determined the tax provision for those operations that are included in the Hertz Holdings consolidated tax return on a separate company return basis, assuming that the Company had filed on a stand-alone basis separate from Hertz Holdings (“Separate Return Basis”). The current and deferred tax related balances and related tax carryforwards reflected in the Company’s combined financial statements for periods prior to the Spin-Off, have been determined on a Separate Return Basis. As a result, the tax balances and carryforwards on the Company’s tax returns post Spin-Off, including net operating losses and tax credits, will be different from those reflected in the combined financial statements. In addition, as a consequence of the Company’s inclusion in the Hertz Holdings' consolidated income tax returns, it is severally liable, with other members of the consolidated group, for any additional taxes that may be assessed. There are no unrecognized tax benefits based on the Herc operations prior to the Spin-Off reflected in these combined financial statements. Herc's LKE Program has been in place for several years. Pursuant to the program, Herc disposes of equipment and acquires replacement equipment in a form intended to allow such dispositions and replacements to qualify as tax-deferred "like-kind exchanges" pursuant to section 1031 of the Internal Revenue Code. The program has resulted in deferral of federal and state income taxes in prior years. The program allows tax deferral if a qualified replacement asset is acquired within a specific time period after asset disposal. Accordingly, if a qualified replacement asset is not purchased within this limited time period, a taxable gain is recognized. Herc cannot offer assurance that the expected tax deferral will continue or that the relevant law concerning the programs will remain in its current form. The Company applies the provisions of Financial Accounting Standards Board ("FASB") Accounting Standards Codification Topic 740, Income Taxes ("ASC 740"), and computes the provision for income taxes on a Separate Return Basis. Under ASC 740, deferred tax assets and liabilities are determined based on differences between the financial statement carrying amounts and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The effect of a change in tax rates is recognized in the statement of operations in the period that includes the enactment date. The Company records a valuation allowance to reduce its deferred tax assets to the amount that is more likely than not to be realized. Subsequent changes to enacted tax rates and changes to the global mix of earnings will result in changes to the tax rates used to calculate deferred taxes and any related valuation allowances. Provisions are not made for income taxes on undistributed earnings of international subsidiaries that are intended to be indefinitely reinvested outside of the United States or are expected to be remitted free of taxes. Future distributions, if any, from these international subsidiaries to the United States or changes in U.S. tax rules may require a charge to reflect tax on these amounts. In accordance with ASC 740, the Company recognizes, in its consolidated financial statements, the impact of the Company's tax positions that are more likely than not to be sustained upon examination based on the technical merits of the positions. The Company recognizes interest and penalties for uncertain tax positions in income tax expense. Recently Issued Accounting Pronouncements Adopted Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could be Achieved After the Requisite Service Period In June 2014, the FASB issued guidance requiring that a performance target in a share-based payment award that affects vesting and that can be achieved after the requisite service period is completed is to be accounted for as a performance condition; therefore, compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved, and the amount of compensation cost recognized should be based on the portion of the service period fulfilled. The Company adopted this guidance prospectively on January 1, 2016 in accordance with the effective date. Adoption of this new guidance did not impact the Company’s financial position, results of operations or cash flows. Amendments to the Consolidation Analysis In February 2015, the FASB issued guidance that changes the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. The Company adopted this guidance retrospectively on January 1, 2016 in accordance with the effective date. Adoption of this new guidance did not impact the Company’s financial position, results of operations or cash flows. Simplifying the Presentation of Debt Issuance Costs In April 2015, the FASB issued guidance requiring debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. In August 2015, the FASB issued guidance clarifying that debt issuance costs related to line-of-credit and other revolving debt arrangements may be deferred and presented as an asset. The Company adopted this guidance retrospectively on January 1, 2016 in accordance with the effective date. The adoption of this new guidance did not impact the Company's financial position, results of operations or cash flows for any periods prior to 2016 . Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement In April 2015, the FASB issued guidance for customers about whether a cloud computing arrangement includes a soft |
Revenue Earning Equipment
Revenue Earning Equipment | 12 Months Ended |
Dec. 31, 2016 | |
Property Subject to or Available for Operating Lease, Net [Abstract] | |
Revenue Earning Equipment | Revenue Earning Equipment Revenue earning equipment consists of the following (in millions): December 31, 2016 December 31, 2015 Revenue earning equipment $ 3,695.5 $ 3,526.2 Less: Accumulated depreciation (1,305.5 ) (1,143.7 ) Revenue earning equipment, net $ 2,390.0 $ 2,382.5 Depreciation rates on the Company's revenue earning equipment are reviewed regularly based on management's ongoing assessment of present and estimated future market conditions, their effect on residual values at the time of disposal and estimated holding periods. The impact of depreciation rate changes was an increase in expense of $9.4 million and $1.9 million for the years ended December 31, 2016 and 2015, respectively. There was no impact to depreciation during the year ended December 31, 2014. For certain equipment at or nearing the end of its useful life, the Company considers the option of refurbishing the equipment as an alternative to replacing it based upon the economics of each alternative. Therefore the number of units refurbished each year can fluctuate based on several factors including the market conditions for used equipment sales and incentives offered by manufacturers of new equipment. The capitalized cost of refurbishing revenue earning equipment were as follows (in millions): Years Ended December 31, 2016 2015 2014 Capitalized cost of refurbishments $ 6.5 $ 40.1 $ 45.5 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment consists of the following (in millions): December 31, 2016 December 31, 2015 Land and buildings $ 108.8 $ 108.0 Service vehicles 242.6 207.5 Leasehold improvements 57.1 56.7 Machinery and equipment 21.6 22.5 Computer equipment and software 35.1 32.4 Furniture and fixtures 4.0 4.0 Construction in progress 23.7 11.3 Property and equipment, gross 492.9 442.4 Less: accumulated depreciation and amortization (220.9 ) (195.8 ) Property and equipment, net $ 272.0 $ 246.6 Depreciation expense for the years ended December 31, 2016, 2015 and 2014 was $39.7 million , $39.6 million and $36.3 million , respectively. Depreciation expense for property and equipment is included in "Direct operating" and "Selling, general and administrative" expenses in the Company's consolidated statements of operations. The Company leases certain of its service vehicle under capital leases. Amortization of assets held under capital leases is included in depreciation expense. The gross amounts of property and equipment and related amortization recorded under capital leases, included in service vehicles in the table above, were as follows (in millions): December 31, 2016 December 31, 2015 Service vehicles $ 109.9 $ 88.9 Less accumulated amortization (41.8 ) (28.7 ) $ 68.1 $ 60.2 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The Company performed its annual goodwill impairment test and determined that no impairment existed for the years ended December 31, 2016 and 2015 . The following summarizes the changes in the Company's goodwill (in millions): Year Ended December 31, 2016 2015 Balance at the beginning of the period: Goodwill $ 765.9 $ 770.0 Accumulated impairment losses (674.9 ) (674.9 ) 91.0 95.1 Sale of France and Spain operations — (4.4 ) Currency translation — 0.3 — (4.1 ) Balance at the end of the period: Goodwill 765.9 765.9 Accumulated impairment losses (674.9 ) (674.9 ) $ 91.0 $ 91.0 The Company performed its annual impairment test of indefinite-lived intangible assets and determined that no impairment existed during the years ended December 31, 2016 and 2015 . Intangible assets, net, consisted of the following major classes (in millions): December 31, 2016 Gross Carrying Amount Accumulated Amortization Net Carrying Value Amortizable intangible assets: Customer-related $ 14.8 $ (7.7 ) $ 7.1 Other (a) 34.8 (4.0 ) 30.8 Total 49.6 (11.7 ) 37.9 Indefinite-lived intangible assets: Trade name 266.0 — 266.0 Total intangible assets, net $ 315.6 $ (11.7 ) $ 303.9 (a) Other amortizable intangible assets primarily consists of internally developed software, of which $26.0 million has yet to be placed into service. December 31, 2015 Gross Carrying Accumulated Net Carrying Value Amortizable intangible assets: Customer-related $ 354.5 $ (344.0 ) $ 10.5 Other (a) 35.0 (11.0 ) 24.0 Total 389.5 (355.0 ) 34.5 Indefinite-lived intangible assets: Trade name 266.0 — 266.0 Total intangible assets, net $ 655.5 $ (355.0 ) $ 300.5 (a) Other amortizable intangible assets primarily consist of non-compete agreements and internally developed software. Amortization of intangible assets for the years ended December 31, 2016, 2015 and 2014 was approximately $5.1 million , $37.6 million and $38.8 million , respectively. During 2016, several customer-related intangible assets became fully amortized and are no longer reflected in the gross carrying amount or accumulated amortization. Based on the amortizable assets as of December 31, 2016 , the Company expects amortization expense to be approximately $3.2 million in 2017, $2.9 million in 2018, $2.1 million in 2019, $1.9 million in 2020, $1.3 million in 2021 and $0.5 million thereafter. |
Divestitures
Divestitures | 12 Months Ended |
Dec. 31, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Divestitures | Divestitures On October 30, 2015, the Company sold its operations in France and Spain comprised of 60 locations in France and two in Spain and realized a gain on the sale of $50.9 million that was recorded in "Other income, net" in the Company's consolidated statements of operations. A portion of the gain, $41.6 million , represents the release of currency translation adjustments from accumulated other comprehensive loss with the remainder of the gain attributable to the assets and liabilities sold. |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Dec. 31, 2016 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued Liabilities Accrued liabilities consists of the following (in millions): December 31, 2016 December 31, 2015 Accrued compensation and benefit costs $ 29.2 $ 9.1 National accounts accrual 23.3 23.1 Accrued interest 9.1 0.3 Other 16.6 15.3 Total accrued liabilities $ 78.2 $ 47.8 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt | Debt The Company's debt consists of the following (in millions): Weighted Average Effective Interest Rate at December 31, 2016 Weighted Average Stated Interest Rate at December 31, 2016 Fixed or Floating Interest Rate Maturity December 31, December 31, Senior Secured Second Priority Notes 2022 Notes 7.88% 7.50% Fixed 2022 $ 610.0 $ — 2024 Notes 8.06% 7.75% Fixed 2024 625.0 — Other Debt ABL Credit Facility N/A 2.54% Floating 2021 910.0 — Capital leases 3.99% N/A Fixed 2017-2021 70.3 63.5 Predecessor ABL Facility (as defined below) N/A N/A Floating N/A — — Unamortized Debt Issuance Costs (a) (21.0 ) — Total debt 2,194.3 63.5 Less: Current maturities of long-term debt (15.7 ) (10.2 ) Long-term debt $ 2,178.6 $ 53.3 (a) Unamortized debt issuance costs totaling $17.1 million related to the ABL Credit Facility (as defined below) are included in "Other long-term assets" in the consolidated balance sheet as of December 31, 2016 . The effective interest rates for the fixed rate 2022 Notes and 2024 Notes (as defined below) include the stated interest on the notes and the amortization of any debt issuance costs. Maturities The nominal principal amounts of maturities of debt for each of the periods ending December 31 are as follows (in millions): 2017 $ 15.7 2018 20.6 2019 22.5 2020 11.5 2021 910.0 After 2021 1,235.0 Total $ 2,215.3 The Company is highly leveraged and its liquidity needs arise from the funding of its costs of operations and capital expenditures and from debt service on its indebtedness. The Company believes that cash generated from operations and cash received from the disposal of equipment, together with amounts available under its asset-based revolving credit agreement (the "ABL Credit Facility"), will be adequate to permit the Company to meet its obligations over the next 12 months. Senior Secured Second Priority Notes In June 2016 , Herc issued $610.0 million aggregate principal amount of 7.50% senior secured second priority notes due 2022 (the "2022 Notes") and $625.0 million aggregate principal amount of 7.75% senior secured second priority notes due 2024 (the "2024 Notes" and, together with the 2022 Notes, the "Notes"). The funds were used to: (i) finance the Spin-Off and in connection therewith make a cash transfer to New Hertz and its affiliates and (ii) pay fees and other transaction expenses in connection therewith. The following summarizes the significant terms and conditions of the Notes: Interest Interest on the 2022 Notes accrues at the rate of 7.50% per annum and is payable semi-annually in arrears on June 1 and December 1 . The 2022 Notes mature on June 1, 2022 . Interest on the 2024 Notes accrues at the rate of 7.75% per annum and is payable semi-annually in arrears on June 1 and December 1 . The 2024 Notes mature on June 1, 2024 . Guarantees The Notes are guaranteed, on a senior secured basis, by each wholly-owned domestic subsidiary of Herc, subject to certain exceptions. The guarantee of each subsidiary is a senior secured obligation of that subsidiary. Collateral Substantially all of the assets of Herc and certain of its U.S. and Canadian subsidiaries are encumbered in favor of Herc's lenders under the terms of the indenture dated as of June 9, 2016 (the "Indenture"), among Herc, as issuer, and Wilmington Trust National Association, as trustee and note collateral agent, and the related collateral documents. The security interests in the collateral may be released without the consent of the holders of the Notes if collateral is disposed of in a transaction that complies with the terms of the Indenture and the related collateral documents, and will be released, so long as any obligations under the ABL Credit Facility are outstanding, upon the release of all liens on such collateral securing the obligations under the ABL Credit Facility obligations. Redemption Herc may redeem the 2022 Notes, in whole or in part, at any time prior to June 1, 2019, at a price equal to 100% of the principal amount thereof, plus accrued and unpaid interest, if any, to, but excluding, the redemption date, plus the applicable make-whole premium. Herc may redeem the 2022 Notes, in whole or in part, at any time (i) on or after June 1, 2019 and prior to June 1, 2020, at a price equal to 103.750% of the principal amount of the 2022 Notes, (ii) on or after June 1, 2020 and prior to June 1, 2021, at a price equal to 101.875% of the principal amount of the 2022 Notes, and (iii) on or after June 1, 2021, at a price equal to 100% of the principal amount of the 2022 Notes, in each case, plus accrued and unpaid interest, if any, to, but not including, the applicable redemption date. In addition, at any time prior to June 1, 2019, Herc at its option may redeem up to 40% of the original aggregate principal amount of the 2022 Notes with the proceeds of one or more equity offerings at a redemption price of 107.500% , plus accrued and unpaid interest, if any, to, but excluding, the date of redemption. Herc may redeem the 2024 Notes, in whole or in part, at any time prior to June 1, 2019, at a price equal to 100% of the principal amount thereof, plus accrued and unpaid interest, if any, to, but excluding, the redemption date, plus the applicable make-whole premium. Herc may redeem the 2024 Notes, in whole or in part, at any time (i) on or after June 1, 2019 and prior to June 1, 2020, at a price equal to 105.813% of the principal amount of the 2024 Notes, (ii) on or after June 1, 2020 and prior to June 1, 2021, at a price equal to 103.875% of the principal amount of the 2024 Notes, (iii) on or after June 1, 2021 and prior to June 1, 2022, at a price equal to 101.938% of the principal amount of the 2024 Notes and (iv) on or after June 1, 2022, at a price equal to 100% of the principal amount of the 2024 Notes, in each case, plus accrued and unpaid interest, if any, to, but not including, the applicable redemption date. In addition, at any time prior to June 1, 2019, Herc at its option may redeem up to 40% of the original aggregate principal amount of the 2024 Notes with the proceeds of one or more equity offerings at a redemption price of 107.750% , plus accrued and unpaid interest, if any, to, but excluding, the date of redemption. Herc, at its option may redeem, during any 12-month period prior to June 1, 2019, up to 10% of the original aggregate principal amount of the 2022 Notes and up to 10% of the original aggregate principal amount of the 2024 Notes, in each case at a redemption price equal to 103% of the aggregate principal amount thereof, plus accrued and unpaid interest, if any, to, but excluding, the date of redemption. See Note 23 , " Subsequent Events " regarding notice of partial redemption of the Notes. Covenants The Indenture contains covenants that, among other things, limit the ability of Herc to incur additional indebtedness, guarantee indebtedness or issue certain preferred shares; pay dividends on, redeem or repurchase stock or make other distributions in respect of its capital stock; repurchase, prepay or redeem subordinated indebtedness; make loans and investments; create liens; transfer or sell assets; consolidate, merge or sell or otherwise dispose of all or substantially all of its assets; enter into certain transactions with affiliates; and designate subsidiaries as unrestricted subsidiaries. Upon the occurrence of certain events constituting a change of control triggering event, Herc is required to make an offer to repurchase all or any part of the Notes (unless otherwise redeemed) at a purchase price equal to 101% of their principal amount, plus accrued and unpaid interest, if any to (but excluding) the repurchase date. If Herc sells assets under certain circumstances, it must use the proceeds to make an offer to purchase the Notes at a price equal to 100% of their principal amount, plus accrued and unpaid interest, if any, to, but excluding, the repurchase date. Events of Default The following are events of default under the Indenture: the nonpayment of principal when due; the nonpayment of interest when due continued for 30 days; the failure to comply for 60 days after receipt of requisite notice with specified obligations, covenants or agreements contained in the Notes or the Indenture; the failure of any subsidiary guarantor to comply for 45 days with its obligations under its guarantee or a failure of any guarantee of a significant subsidiary to be in full force and effect; the failure to pay any indebtedness for borrowed money after final maturity or cross acceleration of material debt if the total amount of such indebtedness exceeds $150.0 million ; certain events of bankruptcy, insolvency or reorganization; the failure to discharge any judgment in excess of $100.0 million ; and the failure of any security document securing the Notes to be in full force and effect with respect to any collateral having a fair market value in excess of $150.0 million . ABL Credit Facility In connection with the Spin-Off on June 30, 2016 , the Company, through its Herc subsidiary, entered into a new asset-based revolving credit agreement that provides for senior secured revolving loans up to a maximum aggregate principal amount of $1,750 million (subject to availability under a borrowing base), including revolving loans in an aggregate principal amount of $350 million available to Canadian borrowers and U.S. borrowers (the "ABL Credit Facility"). Up to $250 million of the revolving loan facility is available for the issuance of letters of credit, subject to certain conditions including issuing lender participation. Extensions of credit under the ABL Credit Facility are limited by a borrowing base calculated periodically based on specified percentages of the value of eligible rental equipment, eligible service vehicles, eligible spare parts and merchandise, eligible accounts receivable, and eligible unbilled accounts subject to certain reserves and other adjustments. Subject to the satisfaction of certain conditions and limitations, the ABL Credit Facility allows for the addition of incremental revolving and/or term loan commitments. In addition, the ABL Credit Facility permits Herc to increase the amount of commitments under the ABL Credit Facility with the consent of each lender providing an additional commitment, subject to satisfaction of certain conditions. Proceeds of loans under the ABL Credit Facility were used to finance the Spin-Off and related fees and expenses and will be used for working capital, capital expenditures, business requirements and general corporate purposes. The following summarizes the significant terms and conditions of the ABL Credit Facility: Interest and Fees The interest rates applicable to the loans under the ABL Credit Facility are based on a fluctuating rate of interest measured by reference to either, at the borrowers’ option, (i) an adjusted London inter-bank offered rate, plus a borrowing margin or (ii) an alternate base rate, plus a borrowing margin (or, in the case of the Canadian borrowers, a rate equal to the rate on bankers’ acceptances with the same maturity, plus a borrowing margin). The borrowing margin on the ABL Credit Facility is determined based on a pricing grid that is bifurcated based on corporate credit ratings, with levels within the grid based on available commitments. Customary fees are also payable in respect of the ABL Credit Facility, including a commitment fee on the unutilized portion thereof. Maturity and Prepayments The ABL Credit Facility matures on June 30, 2021 . The ABL Credit Facility may be prepaid at the borrowers’ option at any time without premium or penalty and will be subject to mandatory prepayment (i) if the outstanding U.S. dollar or Canadian dollar denominated revolving loans under the ABL Credit Facility exceed either the aggregate commitments with respect thereto or the current applicable borrowing base, in an amount equal to such excess or (ii) if, following the occurrence of asset dispositions or any settlement of or payment in respect of any property or casualty insurance claim or any condemnation proceeding relating to the collateral, less than 100% of the net cash proceeds have been reinvested in Herc’s business within 365 days and the available loan commitments are less than $250 million . Guarantees and Security Herc and certain of its subsidiaries, including Canadian subsidiaries, are the borrowers under the ABL Credit Facility. Herc Intermediate Holdings LLC, Herc and each direct and indirect domestic subsidiary of Herc (and, in the case of Canadian obligations, each direct and indirect Canadian subsidiary of Herc) guarantees the borrowers’ payment obligations under the ABL Credit Facility, subject to certain exceptions. The ABL Credit Facility and the guarantees thereof are secured by (i) a first priority pledge of (A) all of the capital stock of Herc and each domestic borrower, (B) all of the capital stock of all domestic subsidiaries owned by Herc, each domestic borrower and each domestic subsidiary guarantor and (C) 65% of the capital stock of any foreign subsidiary held directly by Herc, any domestic borrower or any domestic subsidiary guarantor and (ii) a first priority security interest in substantially all other tangible and intangible assets owned by Herc, each domestic borrower and each domestic subsidiary guarantor, in each case to the extent permitted by applicable law and subject to certain exceptions. The Canadian obligations under the ABL Credit Facility are also secured, pursuant to a Canadian guarantee and collateral agreement made by the Canadian borrowers and certain Canadian subsidiaries of Herc in favor of the Canadian agent and Canadian ABL collateral agent, by a first priority security interest in substantially all assets of the Canadian borrowers and the Canadian guarantors, subject to certain exceptions. The liens securing the ABL Credit Facility are first in priority (as between the ABL Credit Facility and the Notes) with respect to the collateral. Covenants The ABL Credit Facility contains a number of negative covenants that, among other things, limit or restrict the ability of the borrowers and, in certain cases, their restricted subsidiaries to dispose of assets, incur additional indebtedness, incur guarantee obligations, prepay certain indebtedness, make certain dividends, create liens, make investments, make acquisitions, engage in mergers, change the nature of their business, engage in certain transactions with affiliates and enter into certain restrictive agreements. Failure to maintain certain levels of liquidity will subject the Herc credit group to a contractually specified fixed charge coverage ratio of not less than 1 :1 for the four quarters most recently ended. As of December 31, 2016 , the Company was not subject to the fixed charge coverage ratio test. Covenants in the ABL Credit Facility restrict payment of cash dividends to any parent of Herc, including Herc Holdings, except in an aggregate amount, taken together with certain investments, acquisitions and optional prepayments, not to exceed $200 million . Herc may also pay additional cash dividends under the ABL Credit Facility under certain circumstances. The ABL Credit Facility also contains certain affirmative covenants, including financial and other reporting requirements. Events of Default The ABL Credit Facility provides for customary events of default (subject to customary exceptions, thresholds and grace periods), including, without limitation, non-payment of principal, interest or fees, violation of covenants, material inaccuracy of representations or warranties, specified cross default and cross acceleration to other material indebtedness, certain bankruptcy events, certain ERISA events, material invalidity of guarantees or security interest, material judgments and change of control. Borrowing Capacity and Availability After outstanding borrowings, the following was available to the Company under the ABL Credit Facility as of December 31, 2016 (in millions): Remaining Capacity Availability Under Borrowing Base Limitation ABL Credit Facility $ 817.1 $ 817.1 Letters of Credit As of December 31, 2016 , the ABL Credit Facility had $227.1 million available under the letter of credit facility sublimit, subject to borrowing base restrictions as $22.9 million of standby letters of credit were issued and outstanding, upon which none have been drawn. Debt Issuance Costs In connection with the issuance of the Notes and entry into the ABL Credit Facility in 2016, the Company capitalized $41.5 million in deferred debt issuance costs, of which $22.5 million were recorded to "Long-term debt" and $19.0 million were recorded to "Other long-term assets" in the consolidated balance sheet. The debt issuance costs are being amortized to interest expense using the effective interest method for costs related to the Notes and on a straight-line basis for costs related to the ABL Credit Facility over the respective contractual terms of the applicable debt. Non-cash interest expense related to the amortization of these debt issuance costs for the year ended December 31, 2016 was $3.4 million . Non-cash interest expense related to the amortization of debt issuance costs for the Predecessor ABL Facility (as defined below) for the years ended December 31, 2016, 2015 and 2014 was $2.2 million , $4.5 million and $6.2 million , respectively. Predecessor ABL Facility In March 2011 , Herc and THC, as co-borrowers, and certain of their subsidiaries entered into a credit agreement on a revolving basis under an asset-based revolving credit facility (the "Predecessor ABL Facility"). The lenders under the Predecessor ABL Facility were granted a security interest in substantially all of the tangible and intangible assets of THC, Herc and the co-borrowers and guarantors under that facility, including pledges of the stock of certain of their respective U.S. subsidiaries (subject, in each case, to certain exceptions). Concurrent with the Spin-Off on June 30, 2016 , the Predecessor ABL Facility was terminated and any and all liens on the collateral were terminated and released. All amounts, including unpaid interest, were paid in full at the time of termination. |
Employee Retirement Benefits
Employee Retirement Benefits | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Retirement Benefits | Employee Retirement Benefits 401(k) Savings Plan and Other Defined Contribution Plans Prior to the Spin-Off, the Company participated in a THC-sponsored U.S. defined contribution plan covering substantially all U.S. employees (the "Hertz Savings Plan"), as well as certain non-U.S. defined contribution plans covering eligible non-U.S. employees, primarily in Canada. On July 1, 2016, the Company established the Herc Holdings Savings Plan covering all of its U.S. employees. Following the Spin-Off, the accounts (including loans) of the Company's current and former employees were transferred from the Hertz Savings Plan to the new Herc Holdings Savings Plan. Contributions to the plans are made by both the employee and the Company. Company contributions to these plans are based on the level of employee contributions and formulas determined by the Company. Expenses for the defined contribution plans for the years ended December 31, 2016, 2015 and 2014 were approximately $7.5 million , $7.4 million and $3.9 million , respectively. Defined Benefit Pension and Postretirement Plans Prior to the Spin-Off, the Company participated in certain THC-sponsored U.S. defined benefit pension and postretirement plans covering substantially all U.S. employees, as well as certain non-U.S. defined benefit plans covering eligible non-U.S. employees. Qualified U.S. employees of the Company, after completion of specified periods of service, were eligible to participate in The Hertz Corporation Account Balance Defined Benefit Pension Plan (the "Hertz Plan"), a cash balance plan that was frozen effective December 31, 2014. In July 2016, the Company established the Herc Holdings Retirement Plan (the "Plan"), a U.S. qualified pension plan. The majority of assets and liabilities of the Hertz Plan attributable to current and former employees of the equipment rental business were transferred to the Plan following the Spin-Off based on a preliminary allocation that is expected to be finalized in the second quarter 2017. The final transfer of assets, estimated to be $10.4 million , has been included and accounted for as part of the plan assets, and is subject to change based on the final allocation. Postretirement benefits, other than pensions, provide healthcare benefits, and in some instances, life insurance benefits for certain eligible retired employees in the U.S. The Company reflects the funded status of defined benefit pension and other postretirement benefit plans as an asset or liability. This amount is defined as the difference between the fair value of plan assets and the benefit obligation. The Company is required to recognize as a component of other comprehensive income, net of tax, the actuarial gains/losses and prior service credits that arise but were not previously required to be recognized as components of net periodic benefit cost. Other comprehensive income (loss) is adjusted as these amounts are later recognized in the statement of operations as components of net periodic benefit cost. The Company’s policy for funded plans is to contribute, at a minimum, amounts required by applicable laws, regulations and union agreements. The Plan represents approximately 99% of the Company's defined benefit plan obligations and 100% of its plan assets. The Company did not make any cash contributions to the Plan or the predecessor Hertz Plan in 2016 , 2015 or 2014 and does not anticipate making any contributions during 2017 . The level of future contributions will vary, and is dependent on a number of factors including investment returns, interest rate fluctuations, plan demographics, funding regulations and the results of the final actuarial valuation. Additionally, pursuant to various collective bargaining agreements, certain union-represented employees participate in multiemployer pension plans. The following table provides a reconciliation of benefit obligations and plan assets of the Company’s pension plans and postretirement benefit plans (in millions): Pension Postretirement 2016 2015 2016 2015 Change in Projected Benefit Obligations Benefit obligation at beginning of year $ 143.0 $ 144.9 $ 1.0 $ 0.9 Service cost 0.1 0.1 — — Interest cost 5.8 5.6 — — Employee contributions — — 0.1 0.1 Plan curtailments — (0.2 ) — — Plan settlements (0.1 ) (1.4 ) — — Benefits paid (3.7 ) (6.1 ) (0.1 ) (0.1 ) Net transfer (1) 3.6 4.4 — 0.1 Actuarial loss (gain) 0.7 (4.3 ) — — Benefit obligation at end of year $ 149.4 $ 143.0 $ 1.0 $ 1.0 Change in Fair Value of Plan Assets Fair value of plan assets at beginning of year $ 124.3 $ 130.1 $ — $ — Actual return on plan assets 9.4 (4.0 ) — — Company contributions 0.1 1.4 — 0.1 Employee contributions — — 0.1 — Plan settlements (0.1 ) (1.4 ) — — Benefits paid (3.7 ) (6.1 ) (0.1 ) (0.1 ) Adjustment (2) 3.2 4.3 — — Fair value of plan assets at end of year $ 133.2 $ 124.3 $ — $ — Funded Status $ (16.2 ) $ (18.7 ) $ (1.0 ) $ (1.0 ) Accumulated benefit obligation $ 149.4 $ 142.1 (1) The benefit obligation is determined each January 1, based upon updated participant information. The net transfer represents a liability adjustment relating to the updated participant information. (2) In connection with the Spin-Off, assets are allocated between THC and the Company in proportion to the associated liability. This represents an adjustment to assets based on the updated liability. Pension Postretirement 2016 2015 2016 2015 Amounts Recognized in Balance Sheet Accrued liabilities $ (0.2 ) $ (0.5 ) $ (0.1 ) $ (0.1 ) Other long-term liabilities (16.0 ) (18.2 ) (0.9 ) (0.9 ) Net amount recognized $ (16.2 ) $ (18.7 ) $ (1.0 ) $ (1.0 ) Amounts Recognized in Accumulated Other Comprehensive Loss Net actuarial gain (loss) $ (24.2 ) $ (25.7 ) $ 0.1 $ 0.1 Prior service credits 0.2 0.2 — — Net amount recognized $ (24.0 ) $ (25.5 ) $ 0.1 $ 0.1 Weighted‑Average Assumptions Used to Determine Projected Benefit Obligations Discount rate 4.1 % 4.3 % 4.0 % 4.2 % Average rate of increase in compensation — % 4.3 % — % — % Initial healthcare cost trend rate 6.7 % 6.9 % Ultimate healthcare cost trend rate 4.5 % 4.5 % The benefit obligations and fair value of plan assets for the Company’s qualified and non-qualified pension and postretirement plans with projected benefit obligations or accumulated benefit obligations in excess of plan assets are as follows (in millions): Pension Postretirement 2016 2015 2016 2015 Plans with Benefit Obligations in Excess of Plan Assets Projected benefit obligation $ 149.4 $ 143.0 $ 1.0 $ 1.0 Accumulated benefit obligation 149.4 142.1 — — Fair value of plan assets 133.2 124.3 — — The following table sets forth the net periodic pension cost (benefit) (in millions): Years Ended December 31, 2016 2015 2014 Components of Net Periodic Pension Cost (Benefit): Service cost $ 0.1 $ 0.1 $ 5.5 Interest cost 5.8 5.6 6.3 Expected return on plan assets (8.0 ) (8.7 ) (8.4 ) Net amortization of actuarial net loss 1.4 0.3 0.1 Curtailment gain — — (2.4 ) Settlement loss — 0.2 — Net periodic pension cost (benefit) $ (0.7 ) $ (2.5 ) $ 1.1 Weighted‑Average Assumptions Used to Determine Net Periodic Pension Cost (Benefit) Discount rate 4.3 % 3.9 % 4.8 % Expected return on assets 7.2 % 7.4 % 7.6 % Average rate of increase in compensation 4.3 % 4.0 % 4.6 % The net periodic postretirement cost was insignificant in 2016 , 2015 and 2014 . The discount rate reflects the rate the Company would have to pay to purchase high-quality investments that would provide cash sufficient to settle its current pension obligations. The discount rate is determined based on a range of factors, including the rates of return on high-quality, fixed-income corporate bonds and the related expected duration of the obligations. The discount rate for the Plan is based on the rate from the Mercer Pension Discount Curve-Above Mean Yield that is appropriate for the duration of the obligations. The discount rate used to measure the pension obligation at the end of the year is also used to measure pension cost in the following year. The expected return on plan assets for the U.S. qualified plan is based on expected future investment returns considering the target investment mix of plan assets. It reflects the average rate of earnings expected on the funds invested, or to be invested, to provide for the benefits included in the projected benefit obligations. In determining the expected long-term rate of return on plan assets, the Company considers the relative weighting of plan assets, the historical performance of total plan assets and individual asset classes and economic and other indicators of future performance. The expected rate of compensation increase reflects expected long-term average rate of salary increases and is based on historic salary increase experience and management’s expectations of future salary increases. The ultimate healthcare cost trend rates for the postretirement benefit plans are expected to be reached in 2038 . Changing the assumed health care cost trend rates by one percentage point is estimated to have an insignificant (less than $0.1 million ) impact on the accumulated postretirement benefit obligation as of December 31, 2016 and the 2016 aggregate of service and interest costs. The Company expects to amortize $1.2 million of net actuarial losses from accumulated other comprehensive loss into net periodic pension cost (benefit) in 2017 . Plan Assets The Company has a long-term investment outlook for its Plan assets, which is consistent with the long-term nature of the Plan's respective liabilities. The Company currently has a target asset allocation of 65% equity and 35% fixed income. The equity portion of the assets are invested in one passively managed S&P 500 index fund, one passively managed U.S. small/midcap fund, one actively managed international fund and one actively managed emerging markets fund. The fixed income portion of the assets is actively managed by professional investment managers and is benchmarked to the Barclays Long Govt./Credit Index. The fair value measurements of all plan assets are based upon significant other observable inputs (Level 2), except for cash which is based upon quoted market prices in active markets for identical assets (Level 1). The following represents the Company's pension plan assets (in millions): Asset Category December 31, 2016 December 31, 2015 Cash $ 1.5 $ — Short Term Investments 0.2 1.5 Equity Securities: U.S. Large Cap 34.7 34.2 U.S. Mid Cap 11.3 7.8 U.S. Small Cap 9.5 9.7 International Large Cap 20.8 20.7 International Emerging Markets 6.9 6.3 Asset-Backed Securities 1.2 1.1 Fixed Income Securities: U.S. Treasuries 6.8 13.2 Corporate Bonds 21.4 23.8 Government Bonds 3.5 1.9 Municipal Bonds 3.2 2.2 Mortgage-Backed Securities 1.8 — Real Estate (REITs) — 1.9 122.8 124.3 Assets expected to be received from the Hertz Plan 10.4 — Total fair value of pension plan assets $ 133.2 $ 124.3 Estimated Future Benefit Payments The following table presents estimated future benefit payments (in millions): Pension Postretirement 2017 $ 5.7 $ 0.1 2018 6.3 0.1 2019 7.2 0.1 2020 8.2 0.1 2021 8.5 0.1 2022-2026 57.2 0.4 $ 93.1 $ 0.9 Multiemployer Pension Plans The Company contributes to several multiemployer defined benefit pension plans under collective bargaining agreements that cover certain union represented employees. The risks of participating in such plans are different from the risks of single-employer plans, in the following respects: (a) Assets contributed to a multiemployer plan by one employer may be used to provide benefits to employees of other participating employers; (b) If a participating employer ceases to contribute to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers; (c) If the Company ceases to have an obligation to contribute to the multiemployer plan in which the Company had been a contributing employer, the Company may be required to pay to the plan an amount based on the underfunded status of the plan and on the history of the Company's participation in the plan prior to the cessation of its obligation to contribute. The amount that an employer that has ceased to have an obligation to contribute to a multiemployer plan is required to pay to the plan is referred to as a withdrawal liability. The Company's participation in multiemployer plans for the annual period ended December 31, 2016 is outlined in the table below. For each plan that is individually significant to the Company, the following information is provided: • The "EIN / Pension Plan Number" column provides the Employer Identification Number assigned to a plan by the Internal Revenue Service. • The "Pension Protection Act Zone Status" available is for plan years that ended in 2016 and 2015. The zone status is based on information provided to the Company and other participating employers by each plan and is certified by the plan's actuary. A plan in the "red" zone has been determined to be in "critical status," based on criteria established under the Internal Revenue Code, or the "Code," and is generally less than 65% funded. A plan in the "yellow" zone has been determined to be in "endangered status," based on criteria established under the Code, and is generally less than 80% funded. A plan in the "green" zone has been determined to be neither in "critical status" nor in "endangered status," and is generally at least 80% funded. • The "FIP/RP Status Pending/Implemented" column indicates whether a Funding Improvement Plan, as required under the Code to be adopted by plans in the "yellow" zone, or a Rehabilitation Plan, as required under the Code to be adopted by plans in the “red” zone, is pending or has been implemented as of the end of the plan year that ended in 2016. • The "Surcharge Imposed" column indicates whether a surcharge was paid during the most recent annual period presented for the Company's contributions to any plan in the red zone in accordance with the requirements of the Code. The last column lists the expiration dates of the collective bargaining agreements pursuant to which the Company contributed to the plans. There are no plans where the amount contributed by the Company represents more than 5% of the total contributions to the plan for the years ended December 31, 2016, 2015 and 2014. (In millions) EIN / Pension Pension FIP / Contributions Surcharge Imposed Expiration Pension Fund 2016 2015 2016 2015 2014 Midwest Operating Engineers 36-6140097 Green Green N/A $ 0.7 $ 0.7 $ 0.5 N/A 8/31/2018 Other Plans (a) 0.8 0.7 0.6 Total Contributions $ 1.5 $ 1.4 $ 1.1 (a) Consists of six plans, none of which are individually significant to the Company. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Prior to the Spin-Off, certain of the Company's employees participated in stock-based compensation plans sponsored by Hertz Holdings. Stock-based compensation awards are measured on their grant date using a fair value method and are recognized in the statement of operations over the requisite service period. The stock-based compensation plan provides for grants of both equity and cash awards, including non-qualified stock options, incentive stock options, stock appreciation rights, performance awards (shares and units), restricted awards (shares and units) and deferred stock units to key executives, employees and non-management directors. In connection with the Spin-Off, Herc Holdings inherited the Hertz Global Holdings, Inc. 2008 Omnibus Incentive Plan, which was renamed the Herc Holdings Inc. 2008 Omnibus Incentive Plan (the “Omnibus Plan”). Outstanding equity awards at the time of the Spin-Off were adjusted and converted in accordance with a formula designed to preserve the intrinsic economic value of the original equity awards after taking into account the Spin-Off and the reverse stock split. Adjusted awards for active and former Herc employees were denominated in the common stock of Herc Holdings after the Spin-Off. Generally, the adjusted awards were subject to the same terms and vesting conditions as the original Hertz Holdings awards. The adjusted awards for performance stock units provided adjusted performance metrics to reflect the separation of the vehicle rental and equipment rental businesses, and the adjusted awards contained such additional or adjusted provisions as were required. The total number of common shares authorized for issuance under the Omnibus Plan after the reverse stock split is approximately 2,200,000 , of which 750,000 remains available as of December 31, 2016 for future incentive awards. The share and per share data presented in this note have been retroactively adjusted to reflect the impact of the separation and conversion, including the reverse stock split. The Company's stock-based compensation expense is included in “Selling, general and administrative” expense in the Company's consolidated statements of operations. The following table summarizes the expenses and associated income tax benefits recognized (in millions): Years Ended December 31, 2016 2015 2014 Compensation expense $ 5.5 $ 2.7 $ 1.4 Income tax benefit (2.1 ) (1.1 ) (0.5 ) Total $ 3.4 $ 1.6 $ 0.9 Stock-based compensation expense includes expense attributable to the Company based on the awards granted prior to the Spin-Off to the Company's employees and terms under the Omnibus Plan and an allocation of THC's corporate and shared functional employee expenses. Accordingly, the amounts presented are not necessarily indicative of future awards and do not necessarily reflect the results that the Company would have experienced as an independent, publicly-traded company for the periods presented. These expenses include allocated stock-based compensation expenses from THC of $2.0 million , $1.8 million and $0.5 million for the years ended December 31, 2016, 2015 and 2014 , respectively, on a pre-tax basis. The expenses are for the employees of THC and its non-Herc Holdings subsidiaries whose costs of services were allocated to the Company for the applicable periods presented. For additional information related to costs allocated to the Company by THC, see Note 19 , " Related Party Transactions ." As of December 31, 2016 , there was $15.1 million of total unrecognized compensation cost related to non-vested stock options, restricted stock units ("RSUs") and performance stock units ("PSUs") granted under the Omnibus Plan. The total unrecognized compensation cost is expected to be recognized over the remaining 2.2 years, on a weighted average basis, of the requisite service period that began on the grant dates. Stock Options All stock options granted under the Omnibus Plan had a per-share exercise price of not less than the fair market value of one share of common stock on the grant date. Stock options vest based on a minimum period of service or the occurrence of events (such as a change in control, as defined in the Omnibus Plan). No stock options are exercisable after ten years from the grant date. The Company’s practice is to grant stock options at fair market value. Options vest over four years with terms of five to 10 years, assuming continued employment with certain exceptions. Vesting of the option awards is contingent upon meeting certain service conditions. The fair value of option grants is estimated using the Black-Scholes option pricing model. The fair value is then amortized on a straight-line basis over the requisite service periods of the awards, which is generally the vesting period. Use of a valuation model requires management to make certain assumptions with respect to selected model inputs. For stock option grants during 2016, expected volatility was calculated based on a blended volatility of peer group volatility and implied volatility as the Company does not have sufficient stock price data to calculate historical volatility. The Company used the simplified method under Staff Accounting Bulletin Topic 14, Share-Based Payment as the basis for estimating the expected life of an option because the exercise data for participants who held options as employees of a subsidiary of our former parent is not necessarily indicative of future exercise patterns. The risk-free interest rate is based on U.S. Treasury zero-coupon issues with a remaining term which approximates the expected life assumed at the date of grant. The compensation expense recognized for all stock-based awards is net of estimated forfeitures. Forfeitures are estimated based on an analysis of actual option forfeitures. The weighted average assumptions used in the Black-Scholes option pricing model are as follows: Years Ended December 31, 2016 2015 2014 Expected volatility 50% 39% N/A Expected dividend yield —% —% N/A Expected term (years) 4.8 5.0 N/A Risk-free interest rate 1.09% 1.22% N/A The weighted average per share grant date fair values of options granted during 2016 and 2015 were $14.28 and $18.06 , respectively. There were no options granted during 2014 . The intrinsic value is the difference between the market value of the shares on the exercise date and the exercise price of the option. A summary of option activity under the Omnibus Plan is presented below. Options Weighted Weighted Aggregate Intrinsic Outstanding at December 31, 2015 134,200 $ 52.11 Granted 429,539 33.28 Exercised (16,702 ) 21.40 Forfeited or expired (17,362 ) 49.18 Outstanding at December 31, 2016 529,675 $ 37.90 Vested and Unvested Expected to Vest at December 31, 2016 418,974 $ 36.54 6.2 $ 2.5 Exercisable at December 31, 2016 49,543 $ 53.54 2.3 $ 0.1 (a) Market price per share on December 30, 2016 , the last trading day of the year, was $40.16 . The intrinsic value is zero for options with exercise prices above market value. Stock options as of December 31, 2016 : Options Outstanding Options Exercisable Range of Exercise Prices Number Outstanding Weighted Weighted Number Outstanding Weighted Weighted $20.00-30.00 9,260 $ 27.63 2.4 9,260 $ 27.63 2.4 30.01-40.00 420,759 33.19 6.6 — — 0.0 40.01-50.00 9,350 42.82 5.4 5,133 43.59 4.2 50.01-60.00 54,036 55.64 3.5 13,506 55.64 3.5 60.01-70.00 16,774 64.37 0.4 16,774 64.37 0.4 70.01-80.00 19,496 70.14 3.1 4,870 70.14 3.1 529,675 $ 37.90 49,543 $ 53.54 Additional information pertaining to stock option activity under the Omnibus Plan is as follows (in millions): Year Ended December 31, 2016 2015 2014 Aggregate intrinsic value of stock options exercised (a) $ 0.1 $ — $ 0.5 Cash received from the exercise of stock options (b) 0.4 — 0.8 Tax benefit realized on exercise of stock options — — 0.2 (a) The intrinsic value is the difference between the market value of the shares on the exercise date and the exercise price of the option. (b) In addition to the cash received in the table above, cash received from exercise of stock options by Hertz Holdings employees prior to the Spin-Off for 2016 , 2015 and 2014 was $9.6 million , $5.1 million and $17.2 million , respectively, as reflected in the accompanying consolidated statements of cash flows. Performance Stock Units PSUs granted under the Omnibus Plan will vest based on the achievement of pre-determined performance goals over performance periods determined by the Company's Compensation Committee. Each of the units granted under the Omnibus Plan represent the right to receive one share of the Company's common stock on a specified future date. In the event of an employee's death or disability, a pro rata portion of the employee's PSUs will vest to the extent performance goals are achieved at the end of the performance period. A summary of the PSU activity under the Omnibus Plan is presented below. Units Weighted Nonvested at December 31, 2015 37,259 $ 62.33 Granted 119,164 29.77 Vested — — Forfeited or expired (11,459 ) 56.51 Nonvested at December 31, 2016 144,964 $ 36.02 The weighted average per share grant-date fair values of PSUs granted during 2016 , 2015 and 2014 were $29.77 , $59.50 and $68.70 , respectively. The total fair value of PSUs that vested during 2016 , 2015 and 2014 was $0.0 million , $0.6 million and $1.7 million , respectively. Compensation expense for PSUs is based on the grant date fair value, and is recognized ratably over the vesting period. For grants in 2016 , 2015 and 2014 , the vesting period is three years. In addition to the service vesting condition, the PSUs have an additional vesting condition which calls for the number of units to be awarded being based on the achievement of certain performance measures over the applicable measurement period. PSUs granted in 2016 include vesting conditions based on the achievement of the Company's corporate EBITDA performance measures over a three -year period from 2016 to 2018 . PSUs granted in 2015 include vesting conditions based on the achievement of certain performance measures over a three -year period from 2015 to 2017 . For 2015 , the performance measure was based on Hertz Holdings' corporate EBITDA performance measure which was not achieved and, therefore, the PSUs for the 2015 performance period were forfeited. In connection with the Spin-Off, the awards' vesting condition for the 2016 and 2017 performance periods was changed by Hertz Holdings to a Herc stand-alone EBITDA performance measure. The change in the performance measure was treated as a modification of the awards and did not have a significant impact on the Company's results of operations. Restricted Stock Units RSUs granted under the Omnibus Plan will vest based on a minimum period of service or the occurrence of events (such as a change in control, as defined in the Omnibus Plan) specified by the Compensation Committee. Compensation expense for RSUs is based on the grant date fair value, and is recognized ratably over the vesting period. For grants in 2016 , 2015 and 2014 , the vesting period is three years. A summary of the RSU activity under the Omnibus Plan is presented below. Units Weighted Nonvested at December 31, 2015 21,206 $ 56.30 Granted 289,575 32.36 Vested (8,820 ) 55.51 Forfeited or expired (4,063 ) 38.99 Nonvested at December 31, 2016 297,898 $ 32.63 The weighted average per share grant date fair values of RSUs granted during 2016 , 2015 and 2014 were $32.36 , $56.13 and $78.22 , respectively. The total fair value of RSUs that vested during 2016 , 2015 and 2014 was $0.3 million , $0.6 million and $1.6 million , respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For 2014, 2015 and the first half of 2016, Herc is included in the consolidated income tax returns of Hertz Holdings. With respect to these time periods, the income tax provision included in these financial statements has been calculated using a separate return basis, as if Herc filed separate consolidated group income tax returns, and was not part of the consolidated income tax returns of Hertz Holdings. The components of income (loss) before income taxes for the periods were as follows (in millions): Years Ended December 31, 2016 2015 2014 Domestic $ 2.5 $ 102.4 $ 105.3 Foreign (7.4 ) 54.5 39.2 Income (loss) before income taxes $ (4.9 ) $ 156.9 $ 144.5 The provision for income taxes consists of the following (in millions): Years Ended December 31, 2016 2015 2014 Current: Federal $ — $ 15.8 $ 2.4 Foreign 2.4 3.3 16.0 State and local 0.1 4.2 3.0 Total current 2.5 23.3 21.4 Deferred: Federal 3.5 20.4 31.7 Foreign (2.3 ) 0.1 1.1 State and local 11.1 1.8 0.6 Total deferred 12.3 22.3 33.4 Total income tax expense $ 14.8 $ 45.6 $ 54.8 The principal items of the U.S. and foreign net deferred tax assets and liabilities are as follows (in millions): December 31, 2016 December 31, 2015 Deferred tax assets: Employee benefit plans $ 7.1 $ 7.6 Tax credit carryforwards 1.5 0.1 Accrued and prepaid expenses 38.6 32.4 Net operating loss carryforwards 90.7 6.4 Total deferred tax assets 137.9 46.5 Less: valuation allowance (4.5 ) (3.6 ) Total net deferred tax assets 133.4 42.9 Deferred tax liabilities: Deferred state gain (5.5 ) — Depreciation on tangible assets (721.1 ) (673.9 ) Intangible assets (98.9 ) (96.1 ) Total deferred tax liabilities (825.5 ) (770.0 ) Net deferred tax liability $ (692.1 ) $ (727.1 ) In connection with the Spin-Off, net operating loss carryforwards have been split between the Company and New Hertz pursuant to the Internal Revenue Code and regulations. While not expected to be significant, the split of net operating loss carryforwards may be further adjusted as 2016 income tax returns are finalized through 2017. As of December 31, 2016 , deferred tax assets of $78.5 million , net of $0.2 million recorded for uncertain tax positions, were recorded for unutilized U.S. Federal Net Operating Losses, or "NOL," carryforwards of $224.3 million . The total Federal NOL carry forwards are $231.4 million , of which $7.1 million relates to excess tax deductions associated with stock option plans which have yet to reduce taxes payable. Upon the utilization of these carry forwards, the associated tax benefits of approximately $2.5 million will be recorded to equity. The Federal NOLs begin to expire in 2026 . State NOLs, exclusive of the effects of the excess tax deductions, have generated a deferred tax asset of $8.9 million . The state NOLs expire over various years beginning in 2016 depending upon the particular jurisdictions. As of December 31, 2016 , deferred tax assets of $1.1 million were recorded for Federal Alternative Minimum Tax Credits and various non-U.S. Tax Credits. As of December 31, 2016 , deferred tax assets of $3.3 million were recorded for foreign NOL carryforwards of $13.6 million . The foreign NOL carryforwards of $13.6 million include $0.8 million which have an indefinite carryforward period and associated deferred tax assets of $0.1 million . The remaining foreign NOLs of $12.8 million are subject to expiration beginning in 2017 and have associated deferred tax assets of $3.2 million . In determining the valuation allowance, an assessment of positive and negative evidence was performed regarding realization of the net deferred tax assets in accordance with ASC 740-10, "Accounting for Income Taxes," or "ASC 740-10." This assessment included the evaluation of scheduled reversals of deferred tax liabilities, the availability of carryforwards and estimates of projected future taxable income. Based on the assessment, as of December 31, 2016 , total valuation allowances of $4.5 million were recorded against deferred tax assets. Although realization is not assured, the Company has concluded that it is more likely than not the remaining deferred tax assets of $133.4 million will be realized and as such no valuation allowance has been provided on these assets. The income tax in the accompanying consolidated statements of operations differs from the income tax calculated by applying the statutory federal income tax rate of 35.0% to income (loss) before income taxes due to the following (in millions): Years Ended December 31, 2016 2015 2014 Income Tax at Statutory Rate $ (1.7 ) $ 54.9 $ 50.6 Increases (Decreases) Resulting From: Foreign tax differential 0.7 (0.3 ) (8.8 ) Foreign local taxes — 0.8 1.2 Foreign rate changes 0.1 1.7 3.2 State and local income taxes, net of federal income tax benefit 9.5 5.0 (0.1 ) Change in state statutory rates, net of federal income tax benefit 1.7 (0.5 ) 5.3 Federal and foreign permanent differences 3.2 (0.3 ) 0.9 Change in valuation allowance 1.3 3.8 (0.3 ) Benefit from sale of non-U.S. operations — (20.4 ) — All other items, net — 0.9 2.8 Income Tax Expense $ 14.8 $ 45.6 $ 54.8 The provision for income taxes in 2016 is approximately $16.5 million higher than the provision calculated using the statutory federal tax rate. The increase is primarily due to $9.5 million of tax expense related to state taxes incurred as a result of the Spin-Off. However, the majority of the additional taxes were offset by available state NOLs such that the cash taxes associated with the Spin-Off were minimal. The $3.2 million of federal and foreign permanent differences relate to non-deductible items and transaction costs resulting from the Spin-Off. The Company's foreign subsidiaries have undistributed earnings which could be subject to taxation if repatriated. Deferred tax liabilities have not been recorded for such earnings because it is management’s current intention to permanently reinvest such undistributed earnings offshore. Due to the uncertainty caused by the various methods in which such earnings could be repatriated, it is not practicable to estimate the actual amount of such deferred tax liabilities. The Company would consider and pursue appropriate alternatives to reduce the tax liability, if, in the future, undistributed earnings are repatriated to the United States, or it is determined such earnings will be repatriated in the foreseeable future and deferred tax liabilities will be recorded. As a consequence of the Company’s inclusion in the Hertz Global Holdings, Inc. consolidated income tax returns, it is joint and severally liable, with other members of the consolidated group, for any additional taxes that may be assessed against Hertz Global Holdings, Inc. As of December 31, 2016 , the Company has recorded a $0.2 million liability related to New Hertz which is included in the consolidated group for the first half of 2016. The Company classifies net, after-tax interest and penalties related to the liabilities for unrecognized tax benefits as a component of “Income tax expense” in the consolidated statements of operations. However, no penalties or interest have been calculated on the balance of unrecognized tax benefits for the years ended December 31, 2016, 2015 and 2014 as any additional taxable income would be covered by the Company's NOL carryforwards. The Company conducts business globally and, as a result, files one or more income tax returns in the U.S. and non-U.S. jurisdictions. In the normal course of business, the Company is subject to examination by taxing authorities throughout the world. The open tax years for these jurisdictions span from 2004 to 2015. The Internal Revenue Service completed their audit of the Company's 2007 to 2011 consolidated income tax returns, which Herc is included in, and had no changes to the previously filed tax returns. The Company was recently notified that the Internal Revenue Service will be auditing the 2014 and 2015 income tax returns. Several U.S. state and non-U.S. jurisdictions are under audit. We do not expect any material assessments resulting from these audits. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2016 | |
Leases [Abstract] | |
Leases | Leases The Company has various operating leases under which the following amounts were expensed (in millions): Years Ended December 31, 2016 2015 2014 Real estate $ 31.8 $ 31.5 $ 32.1 Office and computer equipment 1.2 1.7 2.1 33.0 33.2 34.2 Sublease income (0.5 ) (0.5 ) (0.7 ) Total $ 32.5 $ 32.7 $ 33.5 As of December 31, 2016, minimum obligations under existing agreements referred to above are as follows (in millions): 2017 $ 29.3 2018 26.7 2019 20.8 2020 14.3 2021 9.3 After 2021 36.0 Total $ 136.4 The future minimum rent payments in the above table have been reduced by minimum future sublease rental inflows in the aggregate amount of $2.0 million as of December 31, 2016 . Many of the Company's real estate leases require the Company to pay or reimburse operating expenses, such as real estate taxes, insurance and maintenance expenses. Such obligations are not reflected in the table of minimum future obligations appearing immediately above. The Company operates from various leased premises under operating leases with terms of up to 15 years. A number of the Company's operating leases contain renewal options. These renewal options vary, but the majority includes clauses for renewal for various term lengths at various rates, both fixed and market. Capital Leases As of December 31, 2016 and 2015 , the Company has gross assets under capital leases of $109.9 million and $88.9 million , respectively. Capital lease obligations consist primarily of service vehicle leases with periods expiring at various dates through 2020. As of December 31, 2016, future minimum capital lease payments for existing agreements referred to above are as follows (in millions): 2017 $ 18.3 2018 22.5 2019 23.6 2020 11.9 Total minimum lease payments 76.3 Less amount representing interest (at a weighted-average interest rate of 3.99%) (6.0 ) Total capital lease obligations $ 70.3 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The changes in the accumulated other comprehensive income (loss) balance by component (net of tax) are presented in the tables below (in millions). Pension and Other Post-Employment Benefits Foreign Currency Items Accumulated Other Comprehensive Income (Loss) Balance at December 31, 2015 $ (15.5 ) $ (119.9 ) $ (135.4 ) Other comprehensive income before reclassification — 15.8 15.8 Amounts reclassified from accumulated other comprehensive loss 0.9 — 0.9 Net current period other comprehensive income 0.9 15.8 16.7 Balance at December 31, 2016 $ (14.6 ) $ (104.1 ) $ (118.7 ) Pension and Other Post-Employment Benefits Foreign Currency Items Accumulated Other Comprehensive Income (Loss) Balance at December 31, 2014 $ (10.8 ) $ (21.5 ) $ (32.3 ) Other comprehensive loss before reclassification (5.0 ) (56.8 ) (61.8 ) Amounts reclassified from accumulated other comprehensive loss 0.3 (41.6 ) (41.3 ) Net current period other comprehensive loss (4.7 ) (98.4 ) (103.1 ) Balance at December 31, 2015 $ (15.5 ) $ (119.9 ) $ (135.4 ) Amounts reclassified from accumulated other comprehensive income (loss) to net income (loss) were as follows (in millions): Years Ended December 31, 2016 2015 2014 Statement of Operations Caption Amortization of actuarial losses $ 1.4 $ 0.3 $ 0.1 Selling, general and administrative Settlement loss — 0.2 — Selling, general and administrative Curtailment gain — — (2.4 ) Selling, general and administrative Reclassification of foreign currency items to other (income) expense (a) — (41.6 ) — Other (income) expense Total 1.4 (41.1 ) (2.3 ) Tax expense (benefit) (0.5 ) (0.2 ) 0.9 Income tax expense Total reclassifications for the period $ 0.9 $ (41.3 ) $ (1.4 ) (a) Related to the sale of the Company's operations in France and Spain in October 2015, see Note 6 , " Divestitures ." |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies and Contingencies | Commitments and Contingencies Legal Proceedings From time to time the Company is a party to various legal proceedings. Summarized below are the most significant legal proceedings to which the Company is a party. In re Hertz Global Holdings, Inc. Securities Litigation - In November 2013, a purported shareholder class action, Pedro Ramirez, Jr. v. Hertz Global Holdings, Inc., et al., was commenced in the U.S. District Court for the District of New Jersey naming Hertz Holdings and certain of its officers as defendants and alleging violations of the federal securities laws. The complaint alleged that Hertz Holdings made material misrepresentations and/or omissions of material fact in its public disclosures during the period from February 25, 2013 through November 4, 2013, in violation of Section 10(b) and 20(a) of the Exchange Act, and Rule 10b-5 promulgated thereunder. The complaint sought an unspecified amount of monetary damages on behalf of the purported class and an award of costs and expenses, including counsel fees and expert fees. In June 2014, Hertz Holdings responded to the amended complaint by filing a motion to dismiss. After a hearing in October 2014, the court granted Hertz Holdings’ motion to dismiss the complaint. The dismissal was without prejudice and plaintiff was granted leave to file a second amended complaint. In November 2014, plaintiff filed a second amended complaint which shortened the putative class period such that it was not alleged to have commenced until May 18, 2013 and made allegations that were not substantively very different than the allegations in the prior complaint. In early 2015, this case was assigned to a new federal judge in the District of New Jersey, and Hertz Holdings responded to the second amended complaint by filing another motion to dismiss. On July 22, 2015, the court granted Hertz Holdings’ motion to dismiss without prejudice and ordered that plaintiff could file a third amended complaint. In August 2015, plaintiff filed a third amended complaint which included additional allegations, named additional then-current and former officers as defendants and expanded the putative class period such that it was alleged to span from February 14, 2013 to July 16, 2015. In November 2015, Hertz Holdings filed its motion to dismiss. Thereafter, a motion was made by plaintiff to add a new plaintiff, because of challenges to the standing of the first plaintiff. The court granted plaintiffs leave to file a fourth amended complaint to add the new plaintiff, and the new complaint was filed on March 1, 2016. Hertz Holdings and the individual defendants moved to dismiss the fourth amended complaint in its entirety with prejudice on March 24, 2016, and plaintiff filed its opposition to same on May 6, 2016. On June 13, 2016, Hertz Holdings and the individual defendants filed their reply briefs in support of their motions to dismiss. The matter is now fully briefed. The Company believes that it has valid and meritorious defenses and New Hertz, which is responsible for managing this matter, has informed the Company that it intends to vigorously defend against the complaint, but litigation is subject to many uncertainties and the outcome of this matter is not predictable with assurance. It is possible that this matter could be decided unfavorably to the Company. The Company is currently unable to reasonably estimate the range of these possible losses, but they could be material to the Company's consolidated financial condition, results of operations or cash flows in any particular reporting period. Governmental Investigations - In June 2014, Hertz Holdings was advised by the staff of the New York Regional Office of the SEC that it is investigating the events disclosed in certain of Hertz Holdings’ filings with the SEC. In addition, in December 2014 a state securities regulator requested information from Hertz Holdings regarding the same or similar events. Starting in June 2016, Hertz Holdings and New Hertz have had communications with the United States Attorney’s Office for the District of New Jersey regarding the same or similar events. New Hertz is responsible for managing these matters. The investigations and communications generally involve the restatements included in Hertz Holdings’ 2014 Form 10-K and related accounting for prior periods. Among other matters, the restatements included in Hertz Holdings’ 2014 Form 10-K addressed a variety of accounting matters involving THC's former Brazil vehicle rental operations. Hertz Holdings identified certain activities by THC's former vehicle rental operations in Brazil that may raise issues under the Foreign Corrupt Practices Act and other federal and local laws. THC has self-reported these issues to appropriate government entities, and these issues continue to be investigated. The Company has and intends to continue to cooperate with all governmental requests related to the foregoing. At this time, the Company is currently unable to predict the outcome of these proceedings and issues or to reasonably estimate the range of possible losses, which could be material. In addition, the Company is subject to a number of claims and proceedings that generally arise in the ordinary conduct of its business. These matters include, but are not limited to, claims arising from the operation of rented equipment and workers' compensation claims. The Company does not believe that the liabilities arising from such ordinary course claims and proceedings will have a material adverse effect on the Company's consolidated financial position, results of operations or cash flows. The Company has established reserves for matters where the Company believes the losses are probable and can be reasonably estimated. For matters where a reserve has not been established, including certain of those described above, the ultimate outcome or resolution cannot be predicted at this time, or the amount of ultimate loss, if any, cannot be reasonably estimated. Litigation is subject to many uncertainties and there can be no assurance as to the outcome of the individual litigated matters. It is possible that certain of the actions, claims, inquiries or proceedings, including those discussed above, could be decided unfavorably to the Company or any of its subsidiaries involved. Accordingly, it is possible that an adverse outcome from such a proceeding could exceed the amount accrued in an amount that could be material to the Company's consolidated financial condition, results of operations or cash flows in any particular reporting period. Off-Balance Sheet Commitments Indemnification Obligations In the ordinary course of business, the Company executes contracts involving indemnification obligations customary in the relevant industry and indemnifications specific to a transaction such as the sale of a business. These indemnification obligations might include claims relating to the following: environmental matters; intellectual property rights; governmental regulations and employment-related matters; customer, supplier and other commercial contractual relationships; and financial matters. Performance under these indemnification obligations would generally be triggered by a breach of terms of the contract or by a third party claim. The Company regularly evaluates the probability of having to incur costs associated with these indemnification obligations and has accrued for expected losses that are probable and estimable. The types of indemnification obligations for which payments are possible include the following: The Spin-Off In connection with the Spin-Off, pursuant to the separation and distribution agreement (as discussed in Note 20 , " Arrangements with New Hertz "), the Company has assumed the liability for, and control of, all pending and threatened legal matters related to its equipment rental business and related assets, as well as assumed or retained liabilities, and will indemnify New Hertz for any liability arising out of or resulting from such assumed legal matters. The separation and distribution agreement also provides for certain liabilities to be shared by the parties. The Company is responsible for a portion of these shared liabilities (typically 15% ) , as set forth in that agreement. New Hertz is responsible for managing the settlement or other disposition of such shared liabilities. Pursuant to the tax matters agreement, the Company has agreed to indemnify New Hertz for any resulting taxes and related losses if the Company takes or fails to take any action (or permits any of its affiliates to take or fail to take any action) that causes the Spin-Off and related transactions to be taxable, or if there is an acquisition of the equity securities or assets of the Company or of any member of the Company’s group that causes the Spin-Off and related transactions to be taxable. Environmental The Company has indemnified various parties for the costs associated with remediating numerous hazardous substance storage, recycling or disposal sites in many states and, in some instances, for natural resource damages. The amount of any such expenses or related natural resource damages for which the Company may be held responsible could be substantial. The probable expenses that the Company expects to incur for such matters have been accrued, and those expenses are reflected in the Company's consolidated financial statements. As of December 31, 2016 and December 31, 2015 , the aggregate amounts accrued for environmental liabilities including liability for environmental indemnities, reflected in the Company's consolidated balance sheets in "Accrued liabilities" were $0.2 million and $0.1 million , respectively. The accrual generally represents the estimated cost to study potential environmental issues at sites deemed to require investigation or clean-up activities, and the estimated cost to implement remediation actions, including on-going maintenance, as required. Cost estimates are developed by site. Initial cost estimates are based on historical experience at similar sites and are refined over time on the basis of in-depth studies of the sites. For many sites, the remediation costs and other damages for which the Company ultimately may be responsible cannot be reasonably estimated because of uncertainties with respect to factors such as the Company's connection to the site, the materials there, the involvement of other potentially responsible parties, the application of laws and other standards or regulations, site conditions, and the nature and scope of investigations, studies, and remediation to be undertaken (including the technologies to be required and the extent, duration, and success of remediation). |
Restructuring
Restructuring | 12 Months Ended |
Dec. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring As part of the Company's ongoing effort to reduce operating costs, the Company reduced headcount and closed certain branches in 2016, 2015 and 2014 in the U.S. and Canada. This resulted in severance costs as well as branch closure charges which principally relate to continuing lease obligations at vacant facilities. The Company incurred the following restructuring costs (in millions): Years Ended December 31, 2016 2015 2014 By Type: Termination benefits $ 1.8 $ 2.8 $ 2.0 Facility closure and lease obligation costs 2.2 1.5 3.0 Relocation costs — — 0.7 Total $ 4.0 $ 4.3 $ 5.7 The following table sets forth the activity affecting the restructuring accrual during the years ended December 31, 2016 and 2015 (in millions). The Company expects to pay the remaining restructuring obligations relating to termination benefits over the next 12 months. The remainder of the restructuring accrual relates to future lease obligations which will be paid over the remaining term of the applicable leases. Termination Other Total Balance as of December 31, 2014 $ 0.8 $ 2.6 $ 3.4 Charges incurred 2.8 1.5 4.3 Cash payments (2.4 ) (2.8 ) (5.2 ) Balance as of December 31, 2015 $ 1.2 $ 1.3 $ 2.5 Charges incurred 1.8 2.2 4.0 Cash payments (2.8 ) (2.8 ) (5.6 ) Balance as of December 31, 2016 $ 0.2 $ 0.7 $ 0.9 |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments | Financial Instruments The Company established risk management policies and procedures, which seek to reduce the Company’s risk exposure to fluctuations in foreign currency exchange rates. However, there can be no assurance that these policies and procedures will be successful. Although the instruments utilized involve varying degrees of credit, market and interest risk, the counterparties to the agreements are expected to perform fully under the terms of the agreements. The Company monitors counterparty credit risk, including lenders, on a regular basis, but cannot be certain that all risks will be discerned or that its risk management policies and procedures will always be effective. Additionally, in the event of default under the Company’s master derivative agreements, the non-defaulting party has the option to set-off any amounts owed with regard to open derivative positions. Foreign Currency Exchange Rate Risk The Company’s objective in managing exposure to foreign currency fluctuations is to limit the exposure of certain cash flows and earnings to foreign currency exchange rate changes through the use of various derivative contracts. The Company experiences foreign currency risks in its global operations as a result of various factors, including intercompany local currency denominated loans, rental operations in various currencies and purchasing fleet in various currencies. While certain derivatives may be subject to netting arrangements with counterparties, the Company does not offset derivative assets and liabilities within the consolidated balance sheet. The following table summarizes the estimated fair value of the Company's financial instruments, none of which have been designated in a hedging relationship (in millions): Fair Value of Financial Instruments Prepaid Expenses and Other Current Assets Accrued Liabilities December 31, December 31, December 31, December 31, Foreign currency forward contracts $ 0.1 $ 0.1 $ — $ — Gains and losses recognized on foreign currency forward contracts are included in "Selling, general and administrative" in the consolidated statements of operations together with the corresponding, offsetting losses and gains on the underlying hedged transactions. The following table summarizes the gains (losses) on derivative instruments for the periods indicated (in millions): Years Ended December 31, 2016 2015 2014 Foreign currency forward contracts $ 5.0 $ (5.9 ) $ (0.5 ) |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the principal market or, if none exists, the most advantageous market, for the specific asset or liability at the measurement date (referred to as the "exit price"). Fair value is a market-based measurement that should be determined based upon assumptions that market participants would use in pricing an asset or liability, including consideration of nonperformance risk. The Company assesses the inputs used to measure fair value using the three-tier hierarchy promulgated under U.S. GAAP. This hierarchy indicates the extent to which inputs used in measuring fair value are observable in the market. Level 1: Inputs that reflect quoted prices for identical assets or liabilities in active markets that are observable. Level 2: Inputs other than quoted prices included in Level 1 that are observable either directly or indirectly, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3: Inputs that are unobservable to the extent that observable inputs are not available for the asset or liability at the measurement date and include management's judgment about assumptions that market participants would use in pricing the asset or liability. Under U.S. GAAP, entities are allowed to measure certain financial instruments and other items at fair value. The Company has not elected the fair value measurement option for any of its assets or liabilities that meet the criteria for this option. Irrespective of the fair value option previously described, U.S. GAAP requires certain financial and non-financial assets and liabilities of the Company to be measured on either a recurring basis or on a nonrecurring basis as shown in the sections that follow. Assets and Liabilities Measured at Fair Value on a Recurring Basis The fair value of cash, accounts receivable, accounts payable and accrued expenses, to the extent the underlying liability will be settled in cash, approximate carrying values because of the short-term nature of these instruments. The Company's assessment of goodwill and other intangible assets for impairment includes an assessment using various Level 2 (EBITDA multiples and discount rate) and Level 3 (forecasted cash flows) inputs. See Note 2 , " Basis of Presentation and Recently Issued Accounting Pronouncements -Goodwill and Indefinite-Lived Intangible Assets," for more information on the application of the use of fair value methodology. Cash Equivalents and Investments The Company’s cash equivalents primarily consist of money market accounts which the Company measures at fair value on a recurring basis. The Company determines the fair value of cash equivalents using a market approach based on quoted prices in active markets. The following table summarizes the ending balance of the Company's cash equivalents (in millions): December 31, 2016 December 31, 2015 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Money market funds $ — $ — $ — $ — $ 13.5 $ — $ — $ 13.5 Financial Instruments The fair value of the Company's financial instruments as of December 31, 2016 and 2015 are shown in Note 16 , " Financial Instruments ." The Company's financial instruments are classified as Level 2 assets and liabilities and are priced using quoted market prices for similar assets or liabilities in active markets. Debt Obligations The fair value of the Company's debt is estimated based on quoted market rates as well as borrowing rates currently available for loans with similar terms and average maturities (Level 2 inputs) (in millions). December 31, 2016 December 31, 2015 Nominal Unpaid Principal Balance Aggregate Fair Value Nominal Unpaid Principal Balance Aggregate Fair Value Debt $ 2,215.3 $ 2,275.5 $ 63.5 $ 63.5 |
Equity and Earnings (Loss) Per
Equity and Earnings (Loss) Per Share | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Equity and Earnings (Loss) Per Share | Equity and Earnings (Loss) Per Share Earnings Per Share Basic earnings (loss) per share has been computed based upon the weighted average number of common shares outstanding. Diluted earnings (loss) per share has been computed based upon the weighted average number of common shares outstanding plus the effect of all potentially dilutive common stock equivalents, except when the effect would be anti-dilutive. On June 30, 2016 , the Company effected a 1-for-15 reverse stock split. All share data, per share amounts and dilutive and antidilutive amounts have been retroactively adjusted to reflect the impact of the separation and conversion, including the reverse stock split, in the accompanying consolidated financial statements and notes thereto for all periods presented. The following table sets forth the computation of basic and diluted earnings (loss) per share (in millions, except per share data). Year Ended December 31, 2016 2015 2014 Basic and diluted earnings (loss) per share: Numerator: Net income (loss), basic $ (19.7 ) $ 111.3 $ 89.7 Interest on convertible senior notes, net of tax — — 1.1 Net income (loss), diluted $ (19.7 ) $ 111.3 $ 90.8 Denominator: Basic weighted average common shares 28.3 30.2 30.3 Stock options, RSUs and PSUs (a) — — — Issuance of common stock upon conversion of convertible senior notes — — 1.3 Weighted average shares used to calculate diluted earnings per share 28.3 30.2 31.6 Earnings (loss) per share: Basic $ (0.70 ) $ 3.69 $ 3.00 Diluted $ (0.70 ) $ 3.69 $ 2.87 Antidilutive stock options, RSUs and PSUs (a) 0.3 — — (a) The dilutive impact of stock options, RSUs and PSUs for the years ended December 31, 2016, 2015 and 2014 and antidilutive impact for the years ended December 31, 2015 and 2014, rounds to zero for each period. Share Repurchase Program In March 2014, Hertz Holdings announced a $1.0 billion share repurchase program (the "Share Repurchase Program"), which replaced an earlier program. The Share Repurchase Program permits the Company, as the successor to Hertz Holdings, to purchase shares through a variety of methods, including in the open market or through privately negotiated transactions, in accordance with applicable securities laws. It does not obligate the Company to make any repurchases at any specific time or in any specific amount. The timing and extent to which the Company repurchases its shares will depend upon, among other things, market conditions, share price, liquidity targets, contractual restrictions and other factors. Share repurchases may be commenced or suspended at any time or from time to time, subject to legal and contractual requirements, without prior notice. During 2015, Hertz Holdings repurchased 2.5 million shares (on a reverse split adjusted basis) at an aggregate purchase price of approximately $604.5 million under the Share Repurchase Program. Repurchases are included in treasury stock in the accompanying consolidated balance sheets as of December 31, 2016 and December 31, 2015 . As of December 31, 2016 , the approximate dollar value of shares that may yet be purchased under the Share Repurchase Program is $395.9 million . |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Transactions between the Company and THC and its affiliates prior to the Spin-Off are herein referred to as "related party" or "affiliated" transactions for the periods presented. Effective with the Spin-Off on June 30, 2016 , all transactions with THC and its affiliates were settled and paid in full. Effective upon the Spin-Off, the Company entered into a transition services agreement with New Hertz. See Note 20 , " Arrangements with New Hertz " for further information. Loans with Affiliates Prior to the Spin-Off, the Company entered into various loan agreements with affiliates as part of the centralized approach to financing of worldwide operations by THC. The amounts due to and from other affiliates had various interest rates and maturity dates but were generally short-term in nature. Effective with the Spin-Off on June 30, 2016 , any loans with affiliates were settled and paid in full, including any accrued interest. Intercompany Transactions Prior to the Spin-Off, all significant intercompany payable/receivable balances between the Company and THC were considered to be effectively settled for cash in the consolidated financial statements at the time the transaction was recorded. Corporate Allocations Prior to the Spin-Off, THC provided services to and funded certain expenses for the Company that were recorded at the THC level. As discussed in Note 2 , " Basis of Presentation and Recently Issued Accounting Pronouncements ," the financial information in these consolidated financial statements includes, in periods prior to June 30, 2016, direct costs of the Company incurred by THC on the Company’s behalf and an allocation of general corporate expenses of THC which were not historically allocated to the Company for certain support functions that were provided on a centralized basis within THC and not recorded at the business unit level, such as expenses related to finance, human resources, information technology, facilities, and legal, among others, and that would have been incurred had the Company been a separate, stand-alone entity. Costs incurred and allocated by THC were included in the consolidated statements of operations as follows (in millions): Years Ended December 31, 2016 2015 2014 Direct operating $ 0.6 $ (0.9 ) $ 2.2 Selling, general and administrative 18.0 36.0 44.5 Total allocated expenses $ 18.6 $ 35.1 $ 46.7 Agreements with Carl C. Icahn The Company is subject to the Nomination and Standstill Agreement, dated September 15, 2014 (the "Nomination and Standstill Agreement"), with Carl C. Icahn, High River Limited Partnership, Hopper Investments LLC, Barberry Corp., Icahn Partners LP, Icahn Partners Master Fund LP, Icahn Enterprises G.P. Inc., Icahn Enterprises Holdings L.P., IPH GP LLC, Icahn Capital LP, Icahn Onshore LP, Icahn Offshore LP, Beckton Corp., Vincent J. Intrieri, Samuel Merksamer and Daniel A. Ninivaggi (collectively, the "Original Icahn Group"). In connection with their appointments to the Company’s board of directors, each of Courtney Mather, Louis J. Pastor and Stephen A. Mongillo (collectively, the "Icahn Designees," and, together with the Original Icahn Group, the "Icahn Group") executed a Joinder Agreement agreeing to become bound as a party to the terms and conditions of the Nomination and Standstill Agreement (such Joinder Agreements are referred to herein collectively as the "Joinder Agreements," and, together with the Nomination and Standstill Agreement, the "Icahn Agreements"). Pursuant to the Icahn Agreements, the Icahn Designees were appointed to the Company’s board of directors effective June 30, 2016. Pursuant to the Icahn Agreements, so long as an Icahn Designee is a member of the board of directors, the board of directors will not be expanded to greater than 10 directors without approval from the Icahn Designees then on the board of directors. In addition, pursuant to the Icahn Agreements, subject to certain restrictions and requirements, the Icahn Group will have certain replacement rights in the event an Icahn Designee resigns or is otherwise unable to serve as a director (other than as a result of not being nominated by the Company for an annual meeting). In addition, until the date that no Icahn Designee is a member of the Board (or otherwise deemed to be on the Board pursuant to the terms of the Icahn Agreements) (the “Board Representation Period”), the Icahn Group agrees to vote all of its shares of the Company’s common stock in favor of the election of all of the Company’s director nominees at each annual or special meeting of the Company’s stockholders. Also pursuant to the Icahn Agreements, during the Board Representation Period, and subject to limited exceptions, the Icahn Group will adhere to certain standstill obligations, including the obligation to not solicit proxies or consents or influence others with respect to the same. The Icahn Group further agrees that during the Board Representation Period, subject to certain limited exceptions, the Icahn Group will not acquire or otherwise beneficially own more than 20% of the Company’s outstanding voting securities. Pursuant to the Icahn Agreements, the Company will not create a separate executive committee of the board so long as an Icahn Designee is a member of the board of directors. If at any time the Icahn Group ceases to hold a "net long position," as defined in the Nomination and Standstill Agreement, in at least (A) 1,900,000 shares of the Company’s common stock, the Icahn Group will cause one Icahn Designee to promptly resign from the board of directors; (B) 1,520,000 shares of the Company’s common stock, the Icahn Group will cause two Icahn Designees to promptly resign from the board of directors; and (C) 1,266,667 shares of the Company’s common stock, the Icahn Group will cause all of the Icahn Designees to promptly resign from the board of directors and the Company’s obligations under the Icahn Agreements will terminate. The foregoing share amounts are adjusted for the reverse stock split that was effective on June 30, 2016. In addition, pursuant to the Icahn Agreements, the Company entered into a registration rights agreement, effective June 30, 2016 (the "Registration Rights Agreement"), with High River Limited Partnership, Icahn Partners LP and Icahn Partners Master Fund LP, on behalf of any person who is a member of the "Icahn group" (as such term is defined therein) who owns applicable securities at the relevant time and is or has become a party to the Registration Rights Agreement. The Registration Rights Agreement provides for customary demand and piggyback registration rights and obligations. An affiliate of Carl C. Icahn purchased $50 million in aggregate principal amount of the 2022 Notes and $75 million in aggregate principal amount of the 2024 Notes. Arrangements with New Hertz In connection with the Spin-Off, the Company entered into a separation and distribution agreement (the "Separation Agreement") with New Hertz. In connection therewith, the Company also entered into various other ancillary agreements with New Hertz to effect the Spin-Off and provide a framework for its relationship with New Hertz. The following summarizes some of the most significant agreements and relationships that Herc Holdings has with New Hertz. Separation and Distribution Agreement The Separation Agreement sets forth the Company's agreements with New Hertz that govern aspects of the Company's relationship with New Hertz following the Spin-Off as follows: Internal Reorganization and Related Financing Transactions The Separation Agreement provided for the transfers of entities and assets and assumptions of liabilities that were necessary to complete the Spin-Off, including the series of internal reorganization transactions such that New Hertz holds the entities associated with the vehicle rental business and the Company holds the entities associated with the equipment rental business. Pursuant to the Separation Agreement, Herc made certain cash transfers in the total amount of approximately $2.1 billion to New Hertz and its subsidiaries in 2016. Legal Matters and Claims; Sharing of Certain Liabilities Subject to any specified exceptions, each party to the Separation Agreement assumed the liability for, and control of, all pending and threatened legal matters related to its own business, as well as assumed or retained liabilities, and will indemnify the other party for any liability arising out of or resulting from such assumed legal matters. The Separation Agreement provides for certain liabilities to be shared by the parties. New Hertz and the Company are each responsible for a portion of these shared liabilities (typically 15% for the Company), as set forth in the Separation Agreement. New Hertz is responsible for managing the settlement or other disposition of such shared liabilities. Other Matters The Separation Agreement, among other things, (i) governed the transfer of assets and liabilities generally, (ii) terminated all intercompany arrangements between New Hertz and the Company except for specified agreements and arrangements that survived the Spin-Off, (iii) released certain claims between the parties and their affiliates, successors and assigns, (iv) allocated expenses of the Spin-Off between the parties, (v) contains further assurances, terms and conditions that require New Hertz and the Company to use commercially reasonable efforts to consummate the transactions contemplated by the Separation Agreement and the ancillary agreements, and (vi) contains mutual indemnification clauses. Transition Services Agreement The Company entered into a TSA pursuant to which New Hertz or its affiliates provide specified services to the Company on a transitional basis to help ensure an orderly transition following the Spin-Off, although New Hertz may request certain transition services to be performed by the Company. The ongoing services to be provided by New Hertz or its affiliates primarily include information technology and network and telecommunications systems support. Other services provided by New Hertz or its affiliates after the Spin-Off included human resources, payroll and benefits; treasury; tax matters and administrative services. The Transition Services Agreement generally provides for a term of up to two years following the Spin-Off, though the recipient of the services may elect to terminate a service at any time upon advance written notice. During 2016, the Company incurred expenses of $10.9 million under the Transition Services Agreement which is included in "Direct operating" and "Selling, general and administrative" expenses in the Company's consolidated statements of operations. Tax Matters Agreement The Company entered into a tax matters agreement ("Tax Matters Agreement") with New Hertz that governs the parties' rights, responsibilities and obligations after the Spin-Off with respect to tax liabilities and benefits, tax attributes, tax contests and other tax matters regarding income taxes, other taxes and related tax returns. Under the Tax Matters Agreement, each party is responsible for their respective tax liabilities. The agreement provided for no compensation due to any change in a tax attribute, such as a net operating loss. Tax attributes were allocated between the entities based on the applicable federal or state income tax law and regulations. The Tax Matters Agreement also requires that an unqualified opinion from a nationally recognized law firm, supplemental ruling from the Internal Revenue Service, or waiver from the other party be obtained upon the occurrence or contemplated occurrence of certain events which could impact the taxability of the transaction under the U.S. federal income tax law. A tax return will be filed with six months activity of New Hertz and 12 months activity of Herc Holdings. Employee Matters Agreement The Company and New Hertz entered into an employee matters agreement (the "Employee Matters Agreement") to allocate liabilities and responsibilities relating to employment matters, employee compensation, benefit plans and programs and other related matters. The Employee Matters Agreement governs New Hertz's and the Company's obligations with respect to such matters for current and former employees of the vehicle rental business and the equipment rental business. Intellectual Property Agreement The Company and New Hertz entered into an intellectual property agreement (the "Intellectual Property Agreement") that provides for ownership, licensing and other arrangements regarding the trademarks and related intellectual property that New Hertz and the Company use in conducting their businesses. The Intellectual Property Agreement allocates ownership between New Hertz and the Company of all trademarks, domain names and certain copyrights that Hertz Holdings or its subsidiaries owned immediately prior to the Spin-Off. The Intellectual Property Agreement provides that the Company has the right to use certain intellectual property associated with the Hertz brand for a period of four years on a royalty-free basis. It also provides that, for so long as the Company continues to use certain intellectual property associated with the Hertz brand, the Company will not directly or indirectly engage in the business of renting and leasing cars, subject to certain exceptions, including that the Company may continue to rent vehicles to the extent Herc had done so immediately prior to the Spin-Off. Real Estate Arrangements The Company and New Hertz entered into certain real estate lease agreements pursuant to which the Company leases certain office space from New Hertz and New Hertz leases certain rental facilities space from the Company. Rent payments were negotiated based on comparable fair market rental rates. |
Arrangements With New Hertz
Arrangements With New Hertz | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Arrangements With New Hertz | Related Party Transactions Transactions between the Company and THC and its affiliates prior to the Spin-Off are herein referred to as "related party" or "affiliated" transactions for the periods presented. Effective with the Spin-Off on June 30, 2016 , all transactions with THC and its affiliates were settled and paid in full. Effective upon the Spin-Off, the Company entered into a transition services agreement with New Hertz. See Note 20 , " Arrangements with New Hertz " for further information. Loans with Affiliates Prior to the Spin-Off, the Company entered into various loan agreements with affiliates as part of the centralized approach to financing of worldwide operations by THC. The amounts due to and from other affiliates had various interest rates and maturity dates but were generally short-term in nature. Effective with the Spin-Off on June 30, 2016 , any loans with affiliates were settled and paid in full, including any accrued interest. Intercompany Transactions Prior to the Spin-Off, all significant intercompany payable/receivable balances between the Company and THC were considered to be effectively settled for cash in the consolidated financial statements at the time the transaction was recorded. Corporate Allocations Prior to the Spin-Off, THC provided services to and funded certain expenses for the Company that were recorded at the THC level. As discussed in Note 2 , " Basis of Presentation and Recently Issued Accounting Pronouncements ," the financial information in these consolidated financial statements includes, in periods prior to June 30, 2016, direct costs of the Company incurred by THC on the Company’s behalf and an allocation of general corporate expenses of THC which were not historically allocated to the Company for certain support functions that were provided on a centralized basis within THC and not recorded at the business unit level, such as expenses related to finance, human resources, information technology, facilities, and legal, among others, and that would have been incurred had the Company been a separate, stand-alone entity. Costs incurred and allocated by THC were included in the consolidated statements of operations as follows (in millions): Years Ended December 31, 2016 2015 2014 Direct operating $ 0.6 $ (0.9 ) $ 2.2 Selling, general and administrative 18.0 36.0 44.5 Total allocated expenses $ 18.6 $ 35.1 $ 46.7 Agreements with Carl C. Icahn The Company is subject to the Nomination and Standstill Agreement, dated September 15, 2014 (the "Nomination and Standstill Agreement"), with Carl C. Icahn, High River Limited Partnership, Hopper Investments LLC, Barberry Corp., Icahn Partners LP, Icahn Partners Master Fund LP, Icahn Enterprises G.P. Inc., Icahn Enterprises Holdings L.P., IPH GP LLC, Icahn Capital LP, Icahn Onshore LP, Icahn Offshore LP, Beckton Corp., Vincent J. Intrieri, Samuel Merksamer and Daniel A. Ninivaggi (collectively, the "Original Icahn Group"). In connection with their appointments to the Company’s board of directors, each of Courtney Mather, Louis J. Pastor and Stephen A. Mongillo (collectively, the "Icahn Designees," and, together with the Original Icahn Group, the "Icahn Group") executed a Joinder Agreement agreeing to become bound as a party to the terms and conditions of the Nomination and Standstill Agreement (such Joinder Agreements are referred to herein collectively as the "Joinder Agreements," and, together with the Nomination and Standstill Agreement, the "Icahn Agreements"). Pursuant to the Icahn Agreements, the Icahn Designees were appointed to the Company’s board of directors effective June 30, 2016. Pursuant to the Icahn Agreements, so long as an Icahn Designee is a member of the board of directors, the board of directors will not be expanded to greater than 10 directors without approval from the Icahn Designees then on the board of directors. In addition, pursuant to the Icahn Agreements, subject to certain restrictions and requirements, the Icahn Group will have certain replacement rights in the event an Icahn Designee resigns or is otherwise unable to serve as a director (other than as a result of not being nominated by the Company for an annual meeting). In addition, until the date that no Icahn Designee is a member of the Board (or otherwise deemed to be on the Board pursuant to the terms of the Icahn Agreements) (the “Board Representation Period”), the Icahn Group agrees to vote all of its shares of the Company’s common stock in favor of the election of all of the Company’s director nominees at each annual or special meeting of the Company’s stockholders. Also pursuant to the Icahn Agreements, during the Board Representation Period, and subject to limited exceptions, the Icahn Group will adhere to certain standstill obligations, including the obligation to not solicit proxies or consents or influence others with respect to the same. The Icahn Group further agrees that during the Board Representation Period, subject to certain limited exceptions, the Icahn Group will not acquire or otherwise beneficially own more than 20% of the Company’s outstanding voting securities. Pursuant to the Icahn Agreements, the Company will not create a separate executive committee of the board so long as an Icahn Designee is a member of the board of directors. If at any time the Icahn Group ceases to hold a "net long position," as defined in the Nomination and Standstill Agreement, in at least (A) 1,900,000 shares of the Company’s common stock, the Icahn Group will cause one Icahn Designee to promptly resign from the board of directors; (B) 1,520,000 shares of the Company’s common stock, the Icahn Group will cause two Icahn Designees to promptly resign from the board of directors; and (C) 1,266,667 shares of the Company’s common stock, the Icahn Group will cause all of the Icahn Designees to promptly resign from the board of directors and the Company’s obligations under the Icahn Agreements will terminate. The foregoing share amounts are adjusted for the reverse stock split that was effective on June 30, 2016. In addition, pursuant to the Icahn Agreements, the Company entered into a registration rights agreement, effective June 30, 2016 (the "Registration Rights Agreement"), with High River Limited Partnership, Icahn Partners LP and Icahn Partners Master Fund LP, on behalf of any person who is a member of the "Icahn group" (as such term is defined therein) who owns applicable securities at the relevant time and is or has become a party to the Registration Rights Agreement. The Registration Rights Agreement provides for customary demand and piggyback registration rights and obligations. An affiliate of Carl C. Icahn purchased $50 million in aggregate principal amount of the 2022 Notes and $75 million in aggregate principal amount of the 2024 Notes. Arrangements with New Hertz In connection with the Spin-Off, the Company entered into a separation and distribution agreement (the "Separation Agreement") with New Hertz. In connection therewith, the Company also entered into various other ancillary agreements with New Hertz to effect the Spin-Off and provide a framework for its relationship with New Hertz. The following summarizes some of the most significant agreements and relationships that Herc Holdings has with New Hertz. Separation and Distribution Agreement The Separation Agreement sets forth the Company's agreements with New Hertz that govern aspects of the Company's relationship with New Hertz following the Spin-Off as follows: Internal Reorganization and Related Financing Transactions The Separation Agreement provided for the transfers of entities and assets and assumptions of liabilities that were necessary to complete the Spin-Off, including the series of internal reorganization transactions such that New Hertz holds the entities associated with the vehicle rental business and the Company holds the entities associated with the equipment rental business. Pursuant to the Separation Agreement, Herc made certain cash transfers in the total amount of approximately $2.1 billion to New Hertz and its subsidiaries in 2016. Legal Matters and Claims; Sharing of Certain Liabilities Subject to any specified exceptions, each party to the Separation Agreement assumed the liability for, and control of, all pending and threatened legal matters related to its own business, as well as assumed or retained liabilities, and will indemnify the other party for any liability arising out of or resulting from such assumed legal matters. The Separation Agreement provides for certain liabilities to be shared by the parties. New Hertz and the Company are each responsible for a portion of these shared liabilities (typically 15% for the Company), as set forth in the Separation Agreement. New Hertz is responsible for managing the settlement or other disposition of such shared liabilities. Other Matters The Separation Agreement, among other things, (i) governed the transfer of assets and liabilities generally, (ii) terminated all intercompany arrangements between New Hertz and the Company except for specified agreements and arrangements that survived the Spin-Off, (iii) released certain claims between the parties and their affiliates, successors and assigns, (iv) allocated expenses of the Spin-Off between the parties, (v) contains further assurances, terms and conditions that require New Hertz and the Company to use commercially reasonable efforts to consummate the transactions contemplated by the Separation Agreement and the ancillary agreements, and (vi) contains mutual indemnification clauses. Transition Services Agreement The Company entered into a TSA pursuant to which New Hertz or its affiliates provide specified services to the Company on a transitional basis to help ensure an orderly transition following the Spin-Off, although New Hertz may request certain transition services to be performed by the Company. The ongoing services to be provided by New Hertz or its affiliates primarily include information technology and network and telecommunications systems support. Other services provided by New Hertz or its affiliates after the Spin-Off included human resources, payroll and benefits; treasury; tax matters and administrative services. The Transition Services Agreement generally provides for a term of up to two years following the Spin-Off, though the recipient of the services may elect to terminate a service at any time upon advance written notice. During 2016, the Company incurred expenses of $10.9 million under the Transition Services Agreement which is included in "Direct operating" and "Selling, general and administrative" expenses in the Company's consolidated statements of operations. Tax Matters Agreement The Company entered into a tax matters agreement ("Tax Matters Agreement") with New Hertz that governs the parties' rights, responsibilities and obligations after the Spin-Off with respect to tax liabilities and benefits, tax attributes, tax contests and other tax matters regarding income taxes, other taxes and related tax returns. Under the Tax Matters Agreement, each party is responsible for their respective tax liabilities. The agreement provided for no compensation due to any change in a tax attribute, such as a net operating loss. Tax attributes were allocated between the entities based on the applicable federal or state income tax law and regulations. The Tax Matters Agreement also requires that an unqualified opinion from a nationally recognized law firm, supplemental ruling from the Internal Revenue Service, or waiver from the other party be obtained upon the occurrence or contemplated occurrence of certain events which could impact the taxability of the transaction under the U.S. federal income tax law. A tax return will be filed with six months activity of New Hertz and 12 months activity of Herc Holdings. Employee Matters Agreement The Company and New Hertz entered into an employee matters agreement (the "Employee Matters Agreement") to allocate liabilities and responsibilities relating to employment matters, employee compensation, benefit plans and programs and other related matters. The Employee Matters Agreement governs New Hertz's and the Company's obligations with respect to such matters for current and former employees of the vehicle rental business and the equipment rental business. Intellectual Property Agreement The Company and New Hertz entered into an intellectual property agreement (the "Intellectual Property Agreement") that provides for ownership, licensing and other arrangements regarding the trademarks and related intellectual property that New Hertz and the Company use in conducting their businesses. The Intellectual Property Agreement allocates ownership between New Hertz and the Company of all trademarks, domain names and certain copyrights that Hertz Holdings or its subsidiaries owned immediately prior to the Spin-Off. The Intellectual Property Agreement provides that the Company has the right to use certain intellectual property associated with the Hertz brand for a period of four years on a royalty-free basis. It also provides that, for so long as the Company continues to use certain intellectual property associated with the Hertz brand, the Company will not directly or indirectly engage in the business of renting and leasing cars, subject to certain exceptions, including that the Company may continue to rent vehicles to the extent Herc had done so immediately prior to the Spin-Off. Real Estate Arrangements The Company and New Hertz entered into certain real estate lease agreements pursuant to which the Company leases certain office space from New Hertz and New Hertz leases certain rental facilities space from the Company. Rent payments were negotiated based on comparable fair market rental rates. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company consists of a single reportable segment, worldwide equipment rental. The Company considered guidance in ASC 280, "Segment Reporting" and used the management approach in determining its reportable segments. International revenues, which are primarily generated in Canada and France (prior to divestiture in October 2015), totaled $193.6 million , $332.4 million and $460.6 million for the years ended December 31, 2016, 2015 and 2014 , respectively. Geographic information for long-lived assets, which consist primarily of revenue earning equipment and property and equipment, was as follows (in millions): December 31, 2016 December 31, 2015 Total assets at end of year United States $ 3,203.3 $ 2,584.8 International 260.0 812.2 Total $ 3,463.3 $ 3,397.0 Revenue earning equipment, net, at end of year United States $ 2,111.0 $ 2,081.9 International 279.0 300.6 Total $ 2,390.0 $ 2,382.5 Property and equipment, net, at end of year United States $ 243.2 $ 214.9 International 28.8 31.7 Total $ 272.0 $ 246.6 |
Quarterly Financial Information
Quarterly Financial Information (Unaudited) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information (Unaudited) | Quarterly Financial Information (Unaudited) Provided below is a summary of the quarterly operating results during 2016 and 2015 . Amounts are computed independently each quarter. As a result, the sum of the quarter's amounts may not equal the total amount for the respective year. First Quarter Second Quarter Third Quarter Fourth Quarter (In millions, except per share data) 2016 2016 2016 2016 Revenues $ 365.6 $ 380.4 $ 403.6 $ 405.2 Income (loss) before income taxes (1.5 ) (2.7 ) 6.7 (7.4 ) Net income (loss) (1.5 ) (8.0 ) 3.0 (13.2 ) Earnings (loss) per share: Basic $ (0.05 ) $ (0.28 ) $ 0.11 $ (0.47 ) Diluted $ (0.05 ) $ (0.28 ) $ 0.11 $ (0.47 ) First Quarter Second Quarter Third Quarter Fourth Quarter (In millions, except per share data) 2015 2015 2015 2015 Revenues $ 401.3 $ 422.7 $ 431.8 $ 422.4 Income before income taxes 6.7 19.6 35.5 95.1 Net income 1.7 10.6 20.8 78.2 Earnings per share: Basic $ 0.06 $ 0.35 $ 0.69 $ 2.68 Diluted $ 0.06 $ 0.35 $ 0.69 $ 2.68 The Company sold its operations in France and Spain on October 31, 2015. Revenues during for the first, second, third and fourth quarters of 2015 attributed to those operations were $24.4 million , $16.1 million , $19.3 million and $6.9 million , respectively. During the fourth quarter 2016, the Company discovered certain errors related to prior period financial statements, primarily related to the accounting for certain Spin-Off costs and internal-use software. To correct the errors, the Company recorded out-of-period adjustments that decreased income (loss) before income taxes by $2.7 million during the quarter ended December 31, 2016, of which approximately $1.9 million relates to fiscal years 2015 and prior. The Company assessed the materiality of these errors, both quantitatively and qualitatively, and concluded that the adjustments are not material to any prior quarterly or annual period and not material to the fourth quarter or annual 2016 periods. As a result, the Company recorded the correction of the errors in the quarter ended December 31, 2016. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On February 28, 2017, pursuant to the terms of the Notes Indenture, Herc gave the Notes trustee notice of redemption of $61.0 million in aggregate principal amount of the 2022 Notes and $62.5 million in aggregate principal amount of the 2024 Notes at a redemption price of 103% of the aggregate principal amount outstanding plus accrued and unpaid interest thereon, if any, to, but not including the date of redemption. Herc drew down on its ABL Credit Facility to fund the redemption. The redemption date was March 10, 2017. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2016 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS HERC HOLDINGS INC. AND SUBSIDIARIES (In millions) Beginning Balance Provisions Translation Adjustments Deductions (a) Ending Balance Receivables allowances: Year Ended December 31, 2016 $ 23.8 $ 44.4 $ 0.1 $ (43.4 ) $ 24.9 Year Ended December 31, 2015 28.4 42.8 — (47.4 ) 23.8 Year Ended December 31, 2014 20.0 37.4 — (29.0 ) 28.4 Tax valuation allowances: Year Ended December 31, 2016 $ 3.6 $ 1.2 $ (0.3 ) $ — $ 4.5 Year Ended December 31, 2015 31.5 0.6 0.9 (29.4 ) 3.6 Year Ended December 31, 2014 34.7 3.7 (2.9 ) (4.0 ) 31.5 (a) Amounts written off, net of recoveries |
Basis of Presentation and Rec32
Basis of Presentation and Recently Issued Accounting Pronouncements (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The Company prepares its consolidated financial statements in conformity with accounting principles generally accepted in the United States ("U.S. GAAP"). The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and footnotes. Actual results could differ materially from those estimates. Significant estimates inherent in the preparation of the consolidated financial statements include depreciation of revenue earning equipment, pension and postretirement benefits, the recoverability of long-lived assets, useful lives and impairment of long-lived tangible and intangible assets including goodwill and trade name, accounting for income taxes, valuation of stock-based compensation, reserves for litigation and other contingencies, reserves for restructuring, allowances for receivables and, prior to the Spin-Off, allocated general corporate expenses from THC, among others. This Annual Report on Form 10-K for the year ended December 31, 2016 (this "Report"), is the Company's first annual report made post-Spin-Off as a stand-alone public company comprised of only the equipment rental business. The consolidated financial statements were presented on a basis of accounting that reflected a change in reporting entity and were adjusted for the effects of the Spin-Off. The consolidated financial statements represent only those operations, assets, liabilities and equity that form Herc Holdings on a stand-alone basis. Since the Spin-Off occurred on June 30, 2016 , the financial statements in this Report represent the carve-out financial results for the first six months of 2016, including the Spin-Off impacts, and actual results for the last six months of the year ended December 31, 2016 . All prior period amounts represent carve-out financial results. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of Herc Holdings and its wholly owned subsidiaries. In the event that the Company is a primary beneficiary of a variable interest entity, the assets, liabilities and results of operations of the variable interest entity are included in the Company's consolidated financial statements. The Company accounts for its investments in joint ventures using the equity method when it has significant influence but not control and is not the primary beneficiary. All significant intercompany transactions have been eliminated in consolidation. Transactions between the Company and THC and its affiliates prior to the Spin-Off are herein referred to as "related party" or "affiliated" transactions for the periods presented. Effective with the Spin-Off on June 30, 2016 , all then existing transactions with THC and its affiliates were settled and paid in full. Effective upon the Spin-Off, the Company entered into certain agreements with New Hertz, including a transition services agreement ("TSA"). See Note 20 , " Arrangements with New Hertz " for further information. For periods prior to the Spin-Off, the consolidated financial statements include net interest expense on loans receivable and payable to affiliates and expense allocations for certain corporate functions historically performed by THC, including, but not limited to, general corporate expenses related to finance, legal, information technology, human resources, communications, employee benefits and incentives, insurance and stock-based compensation. These expenses were allocated to the Company on the basis of direct usage when identifiable, with the remainder allocated on the basis of revenues, operating expenses, headcount or other relevant measures. Management believes the assumptions underlying the consolidated financial statements, including the assumptions regarding the allocation of corporate expenses from THC, are reasonable. Nevertheless, the consolidated financial statements may not include all of the expenses that would have been incurred had the Company been a stand-alone company during the periods presented and may not reflect the Company's consolidated financial position, results of operations and cash flows had the Company been a stand-alone company during the periods presented. Actual costs that would have been incurred if the Company had been a stand-alone company would have depended on multiple factors, including organizational structure and strategic decisions made in various areas, including information technology and infrastructure. For additional information related to costs allocated to the Company by THC, see Note 19 , " Related Party Transactions ." |
Reclassification of Prior Period Presentation | Reclassification of Prior Period Presentation Certain prior period amounts have been reclassified for consistency with the current period presentation. These reclassifications had no effect on the reported consolidated balance sheets, results of operations, equity or cash flows for any period presented. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash on hand and highly liquid investments with an original maturity of three months or less. |
Restricted Cash and Cash Equivalents | Restricted Cash and Cash Equivalents Restricted cash and cash equivalents includes cash and cash equivalents that are not readily available for the Company's normal disbursements. Restricted cash and cash equivalents are restricted for the purchase of revenue earning equipment under the Company's Like-Kind Exchange Program ("LKE Program"). See "Income Taxes" below for additional information related to the LKE Program. |
Concentration of Credit Risk | Concentration of Credit Risk The Company's cash and cash equivalents are held in checking accounts, various investment grade institutional money market accounts or bank term deposits. Deposits held at banks may exceed the amount of insurance provided on such deposits. Generally, these deposits may be redeemed upon demand and are maintained with financial institutions with reputable credit and therefore bear minimal credit risk. The Company seeks to mitigate such risks by spreading the risk across multiple counterparties and monitoring the risk profiles of these counterparties. In addition, the Company has credit risk from financial instruments used in hedging activities. The Company limits its exposure relating to financial instruments by diversifying the financial instruments among various counterparties, which consist of major financial institutions. No single customer accounted for more than 3% of the Company’s rental revenues during the years ended December 31, 2016, 2015 and 2014 . As of December 31, 2016 and 2015 , no single customer accounted for more than 3% of accounts receivable. |
Receivables | Receivables Receivables are stated net of allowances and represent credit extended to customers and manufacturers that satisfy defined credit criteria. The estimate of the allowance for doubtful accounts is based on the Company's historical experience and its judgment as to the likelihood of ultimate collection. Actual receivables are written-off against the allowance for doubtful accounts when the Company determines the balance will not be collected. Estimates for future credit memos are based on historical experience and are reflected as reductions to revenue, while bad debt expense is reflected as a component of "Selling, general and administrative expenses" in the Company's consolidated statements of operations. |
Inventory | Inventory Inventory is comprised of finished goods and consists of new equipment, supplies, tools, parts, fuel and related supply items. Inventory is stated at the lower of cost or market. Cost is determined by inventory type on the average cost method. |
Revenue Earning Equipment | Revenue Earning Equipment Revenue earning equipment is stated at cost, net of related discounts, with holding periods ranging from two to 15 years. Generally, when revenue earning equipment is acquired, the Company estimates the period that it will hold the asset, primarily based on historical measures of the amount of rental activity (e.g. equipment usage) and the targeted age of equipment at the time of disposal. The Company also estimates the residual value of the applicable revenue earning equipment at the expected time of disposal. The residual value for rental equipment is affected by factors which include equipment age and amount of usage. Depreciation is recorded over the estimated holding period. Depreciation rates are reviewed on a quarterly basis based on management's ongoing assessment of present and estimated future market conditions, their effect on residual values at the time of disposal and the estimated holding periods. Market conditions for used equipment sales can also be affected by external factors such as the economy, natural disasters, fuel prices, the market price for similar new equipment and incentives offered by manufacturers of new equipment. These key factors are considered when estimating future residual values and assessing depreciation rates. As a result of this ongoing assessment, the Company makes periodic adjustments to depreciation rates of revenue earning equipment in response to changed market conditions. For certain equipment at or nearing the end of its useful life, the Company considers the option of refurbishing the equipment as an alternative to replacing it based upon the economics of each alternative. Refurbishment costs that extend the useful life of the asset are capitalized and amortized over the remaining useful life of the asset. During 2014, the Company decided to sell certain revenue earning equipment which had been categorized as held for sale. As a result, the Company determined the fair value of these assets and recorded an impairment charge of $9.6 million . |
Property and Equipment | Property and Equipment Property and equipment are stated at cost and are depreciated utilizing the straight-line method over the estimated useful lives of the related assets. Leasehold improvements are amortized over the estimated useful lives of the related assets or leases, whichever is shorter. Useful lives are as follows: Buildings 8 to 33 years Service vehicles 3 to 13 years Machinery and equipment 1 to 15 years Computer equipment 1 to 5 years Furniture and fixtures 2 to 10 years Leasehold improvements The lesser of the economic life or the lease term The Company follows the practice of charging routine maintenance and repairs, including the cost of minor replacements, to maintenance expense. Costs of major replacements are capitalized and depreciated. |
Public Liability and Property Damage | Public Liability and Property Damage The obligation for public liability and property damage on self-insured U.S. and international equipment represents an estimate for both reported accident claims not yet paid, and claims incurred but not yet reported. The related liabilities are recorded on a non-discounted basis. Reserve requirements are based on actuarial evaluations of historical accident claim experience and trends, as well as future projections of ultimate losses, expenses, premiums and administrative costs. The adequacy of the liability is regularly monitored based on evolving accident claim history and insurance-related state legislation changes. If the Company's estimates change or if actual results differ from these assumptions, the amount of the recorded liability is adjusted to reflect these results. |
Defined Benefit Pension Plans and Other Employee Benefits | Defined Benefit Pension Plans and Other Employee Benefits The Company's employee pension costs and obligations are developed from actuarial valuations. Inherent in these valuations are key assumptions, including discount rates, salary growth, long-term return on plan assets, retirement rates, mortality rates and other factors. The selection of assumptions is based on historical trends and known economic and market conditions at the time of valuation, as well as independent studies of trends performed by actuaries. However, actual results may differ substantially from the estimates that were based on the critical assumptions. The Company uses a December 31 measurement date for all of the plans. Actual results that differ from the Company's assumptions are accumulated and amortized over future periods and, therefore, generally affect its recognized expense in such future periods. While management believes that the assumptions used are appropriate, significant differences in actual experience or significant changes in assumptions would affect the Company's pension costs and obligations. The Company maintains reserves for employee medical claims, up to its insurance stop-loss limit, and workers' compensation claims. These are regularly evaluated and revised, as needed, based on a variety of information, including historical experience, actuarial estimates and current employee statistics. |
Restructuring | Restructuring Business restructuring charges include (i) one-time termination benefits related to employee separations, (ii) contract terminations costs and/or (iii) other costs associated with exit or disposal activities including, but not limited to, costs for consolidating or closing facilities and relocating employees and are recognized at fair value when management has committed to a restructuring plan. |
Foreign Currency Translation and Transactions | Foreign Currency Translation and Transactions Assets and liabilities of international subsidiaries whose functional currency is the local currency are translated at the rate of exchange in effect on the balance sheet date; income and expenses are translated at the average exchange rates throughout the year. The related translation adjustments are reflected in “Accumulated other comprehensive income (loss)” in the equity section of the Company's consolidated balance sheets. Foreign currency gains and losses resulting from transactions are included in earnings. |
Financial Instruments | Financial Instruments The Company is exposed to a variety of market risks, including the effects of changes in gasoline and diesel fuel prices and foreign currency exchange rates. The Company manages exposure to these market risks through ongoing processes to monitor the impact of market changes and, when deemed appropriate, through the use of financial instruments. Financial instruments are viewed as risk management tools and have not been used for speculative or trading purposes. The Company accounts for all derivatives in accordance with U.S. GAAP, which requires that they be recorded on the balance sheet as either assets or liabilities measured at their fair value. For financial instruments that are designated and qualify as hedging instruments, the Company designates the hedging instrument, based upon the exposure being hedged, as either a fair value hedge or a cash flow hedge. The effective portion of changes in fair value of financial instruments designated as cash flow hedging instruments is recorded as a component of other comprehensive income (loss). Amounts included in accumulated other comprehensive income (loss) for cash flow hedges are reclassified into earnings in the same period that the hedged item is recognized in earnings. The ineffective portion of changes in the fair value of financial instruments designated as cash flow hedges is recognized currently in earnings within the same line item as the hedged item, based upon the nature of the hedged item. For financial instruments that are not part of a qualified hedging relationship, the changes in their fair value are recognized currently in earnings. |
Goodwill and Indefinite-Lived Intangible Assets | Goodwill and Indefinite-Lived Intangible Assets On an annual basis and at interim periods when circumstances require, the Company tests the recoverability of its goodwill. The Company utilizes the two-step impairment analysis and elects not to use the qualitative assessment or "Step Zero" approach. In the two-step impairment analysis, the Company has one reporting unit and compares the carrying value of its reporting unit to its fair value. If the carrying value of the reporting unit is greater than its fair value, the second step is performed, where the implied fair value of goodwill is compared to its carrying value. The Company recognizes an impairment charge for the amount by which the carrying amount of goodwill exceeds its implied fair value. The fair value of the reporting unit is estimated using the net present value of discounted cash flows expected to be generated by the reporting unit and incorporates various assumptions related to discount and growth rates specific to the reporting unit. The Company’s discounted cash flows are based upon reasonable and appropriate assumptions, which are weighted for their likely probability of occurrence, about the underlying business activities of the Company. In certain instances, the Company uses earnings multiples based on published earnings multiples of comparable entities with similar operations and economic characteristics. Indefinite-lived intangible assets, primarily trademarks, are not amortized but are evaluated annually for impairment and whenever events or changes in circumstances indicate that the carrying amount of this asset may exceed its fair value. If the carrying value of an indefinite-lived intangible asset exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. |
Finite-Lived Intangible and Long-Lived Assets | Finite-Lived Intangible and Long-Lived Assets Intangible assets include technology, customer relationships, trade names and other intangibles. Intangible assets with finite lives are amortized using the straight-line method over the estimated economic lives of the assets, which range from five to 10 years. Long-lived assets, including intangible assets with finite lives, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Determination of recoverability is based on an estimate of undiscounted future cash flows resulting from the use of the asset and its eventual disposition. Measurement of an impairment loss for long-lived assets that management expects to hold and use is based on the estimated fair value of the asset. Long-lived assets to be disposed of are reported at the lower of carrying amount or estimated fair value less costs to sell. |
Revenue Recognition | Revenue Recognition Equipment rental revenue includes revenues generated from renting equipment to customers and is recognized on a straight-line basis over the length of the rental contract. Also included in equipment rental revenue are fees for equipment delivery and pick-up and fees for the rental protection program which allows customers to limit the risk of financial loss in the event the Company's equipment is damaged or lost. Delivery and pick-up fees are recognized as revenue when the services are performed and fees related to the rental protection program are recognized over the length of the contract term. Provisions for discounts, rebates to customers and other adjustments are provided for in the period the related revenue is recorded. Revenues from the sale of revenue earning equipment, new equipment, parts and supplies are recognized at the time the customer takes possession, when collectability is reasonably assured and when all obligations under the sales contract have been fulfilled. Sales tax amounts collected from customers and remitted to governmental authorities are accounted for on a net basis and therefore excluded from revenue. The Company generally recognizes revenue from the sale of new equipment purchased from other companies based on the gross amount billed as the Company establishes its own pricing and retains related inventory risk, is the primary obligor in sales transactions with its customers, and assumes the credit risk for amounts billed to its customers. Service and other revenue is recognized as the services are performed. |
Advertising | Advertising Advertising and sales promotion costs are expensed the first time the advertising or sales promotion takes place. Advertising costs are reflected as a component of "Selling, general and administrative" expense in the Company's consolidated statements of operations. For the years ended December 31, 2016, 2015 and 2014 , advertising costs were $3.6 million , $2.9 million and $3.3 million , respectively. |
Stock Based Compensation | Stock Based Compensation Under the Company's stock based compensation plans, certain employees have received grants of restricted stock units, performance stock units and stock options for Herc Holdings common stock. The Company measures the cost of employee services received in exchange for an award of equity instruments based on the grant date fair value of the award. That cost is recognized over the period during which the employee is required to provide service in exchange for the award. The Company has estimated the fair value of options issued at the date of grant using a Black-Scholes option-pricing model, which includes assumptions related to volatility, expected term, dividend yield and risk-free interest rate. The Company accounts for restricted stock unit and performance stock unit awards as equity classified awards. For restricted stock units, the expense is based on the grant date fair value of the stock and the number of shares that vest, recognized over the service period. For performance stock units, the expense is based on the grant date fair value of the stock, recognized over a two to four year service period depending upon the applicable performance condition. For performance stock units, the Company re-assesses the probability of achieving the applicable performance condition each reporting period and adjusts the recognition of expense accordingly. |
Income Taxes | Income Taxes The Company’s operations are subject to U.S. federal, state and local, and foreign income taxes, portions of which have historically been included in the Hertz Holdings consolidated U.S. federal income tax return, along with certain state and local and foreign income tax returns. In preparing its combined financial statements for periods prior to the Spin-Off, the Company has determined the tax provision for those operations that are included in the Hertz Holdings consolidated tax return on a separate company return basis, assuming that the Company had filed on a stand-alone basis separate from Hertz Holdings (“Separate Return Basis”). The current and deferred tax related balances and related tax carryforwards reflected in the Company’s combined financial statements for periods prior to the Spin-Off, have been determined on a Separate Return Basis. As a result, the tax balances and carryforwards on the Company’s tax returns post Spin-Off, including net operating losses and tax credits, will be different from those reflected in the combined financial statements. In addition, as a consequence of the Company’s inclusion in the Hertz Holdings' consolidated income tax returns, it is severally liable, with other members of the consolidated group, for any additional taxes that may be assessed. There are no unrecognized tax benefits based on the Herc operations prior to the Spin-Off reflected in these combined financial statements. Herc's LKE Program has been in place for several years. Pursuant to the program, Herc disposes of equipment and acquires replacement equipment in a form intended to allow such dispositions and replacements to qualify as tax-deferred "like-kind exchanges" pursuant to section 1031 of the Internal Revenue Code. The program has resulted in deferral of federal and state income taxes in prior years. The program allows tax deferral if a qualified replacement asset is acquired within a specific time period after asset disposal. Accordingly, if a qualified replacement asset is not purchased within this limited time period, a taxable gain is recognized. Herc cannot offer assurance that the expected tax deferral will continue or that the relevant law concerning the programs will remain in its current form. The Company applies the provisions of Financial Accounting Standards Board ("FASB") Accounting Standards Codification Topic 740, Income Taxes ("ASC 740"), and computes the provision for income taxes on a Separate Return Basis. Under ASC 740, deferred tax assets and liabilities are determined based on differences between the financial statement carrying amounts and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The effect of a change in tax rates is recognized in the statement of operations in the period that includes the enactment date. The Company records a valuation allowance to reduce its deferred tax assets to the amount that is more likely than not to be realized. Subsequent changes to enacted tax rates and changes to the global mix of earnings will result in changes to the tax rates used to calculate deferred taxes and any related valuation allowances. Provisions are not made for income taxes on undistributed earnings of international subsidiaries that are intended to be indefinitely reinvested outside of the United States or are expected to be remitted free of taxes. Future distributions, if any, from these international subsidiaries to the United States or changes in U.S. tax rules may require a charge to reflect tax on these amounts. In accordance with ASC 740, the Company recognizes, in its consolidated financial statements, the impact of the Company's tax positions that are more likely than not to be sustained upon examination based on the technical merits of the positions. The Company recognizes interest and penalties for uncertain tax positions in income tax expense. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Adopted Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could be Achieved After the Requisite Service Period In June 2014, the FASB issued guidance requiring that a performance target in a share-based payment award that affects vesting and that can be achieved after the requisite service period is completed is to be accounted for as a performance condition; therefore, compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved, and the amount of compensation cost recognized should be based on the portion of the service period fulfilled. The Company adopted this guidance prospectively on January 1, 2016 in accordance with the effective date. Adoption of this new guidance did not impact the Company’s financial position, results of operations or cash flows. Amendments to the Consolidation Analysis In February 2015, the FASB issued guidance that changes the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. The Company adopted this guidance retrospectively on January 1, 2016 in accordance with the effective date. Adoption of this new guidance did not impact the Company’s financial position, results of operations or cash flows. Simplifying the Presentation of Debt Issuance Costs In April 2015, the FASB issued guidance requiring debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. In August 2015, the FASB issued guidance clarifying that debt issuance costs related to line-of-credit and other revolving debt arrangements may be deferred and presented as an asset. The Company adopted this guidance retrospectively on January 1, 2016 in accordance with the effective date. The adoption of this new guidance did not impact the Company's financial position, results of operations or cash flows for any periods prior to 2016 . Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement In April 2015, the FASB issued guidance for customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The Company adopted this guidance prospectively on January 1, 2016 in accordance with the effective date. Adoption of this new guidance did not impact the Company’s financial position, results of operations or cash flows. Not Yet Adopted Revenue from Contracts with Customers In May 2014, the FASB issued guidance that will replace most existing revenue recognition guidance under U.S. GAAP. The new guidance applies to all contracts with customers except for leases, insurance contracts, financial instruments, certain nonmonetary exchanges and certain guarantees. The core principle of the guidance is that an entity should recognize revenue for the transfer of goods or services equal to the amount that it expects to be entitled to receive for those goods or services. The new principles-based revenue recognition model requires an entity to perform five steps in its analysis: 1) identify the contract(s) with a customer, 2) identify the performance obligations in the contract, 3) determine the transaction price, 4) allocate the transaction price to the performance obligations in the contract, and 5) recognize revenue when (or as) the entity satisfies a performance obligation. Under the new guidance, performance obligations in a contract will be separately identified, which may impact the timing of recognition of the revenue allocated to each obligation. The measurement of revenue recognized may also be impacted by identification of new performance obligations and other matters, such as collectability and variable consideration. Also, additional disclosures are required about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments. The new guidance may be adopted on either a full or modified retrospective basis. As originally issued, the guidance was effective for annual reporting periods beginning after December 15, 2016, including interim periods within those reporting periods. However in July 2015, the FASB deferred the effective date until annual and interim reporting periods beginning after December 15, 2017. In March 2016, the FASB issued clarifying guidance on assessing whether an entity is a principal or an agent in a revenue transaction, which impacts whether an entity reports revenue on a gross or net basis. In April 2016, the FASB issued guidance that reduces the complexity for identifying performance obligations and clarifies the implementation guidance on licensing for intellectual property. In May 2016, the FASB issued guidance that clarifies the collectability criterion, the presentation of sales taxes and non-cash consideration, and provides additional implementation practical expedients. The Company will adopt this guidance when it becomes effective and is assessing the overall impacts of adopting this guidance on its financial position, results of operations and cash flows. Simplifying the Subsequent Measurement of Inventory In July 2015, the FASB issued guidance that requires inventory to be measured at the lower of cost and net realizable value (rather than cost or market), excluding inventory measured using the last-in, first-out method or the retail inventory method. Net realizable value is defined as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. This guidance is effective prospectively for annual periods beginning after December 15, 2016 and interim periods within those annual periods. The Company has assessed the potential impacts from future adoption of this guidance and has determined that there will be no impact on its financial position, results of operations and cash flows. Recognition and Measurement of Financial Assets and Financial Liabilities In January 2016, the FASB issued guidance that makes several changes to the manner in which financial assets and liabilities are accounted for, including, among other things, a requirement to measure most equity investments at fair value with changes in fair value recognized in net income (with the exception of investments that are consolidated or accounted for using the equity method or a fair value practicability exception), and amends certain disclosure requirements related to fair value measurements and financial assets and liabilities. This guidance is effective for annual periods beginning after December 15, 2017 and interim periods within those annual periods using a modified retrospective transition method for most of the requirements. The Company is in the process of assessing the potential impacts of adopting this guidance on its financial position, results of operations and cash flows. Leases In February 2016, the FASB issued guidance that replaces the existing lease guidance. The new guidance establishes a right-of-use model that requires a lessee to record a right-of-use asset and lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. This guidance also expands the requirements for lessees to record leases embedded in other arrangements and the required quantitative and qualitative disclosures surrounding leases. Accounting guidance for lessors is largely unchanged. This guidance is effective for annual periods beginning after December 15, 2018 and interim periods within those annual periods using a modified retrospective transition approach. The Company is in the process of assessing the potential impacts of adopting this guidance on its financial position, results of operations and cash flows. Simplifying the Transition to the Equity Method of Accounting In March 2016, the FASB issued guidance that eliminates the requirement to apply the equity method of accounting retrospectively when significant influence over a previously held investment is obtained. Rather, the guidance requires the investor to add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method of accounting. This guidance is effective prospectively for annual periods beginning after December 15, 2016 and interim periods within those annual periods. The Company has assessed the potential impacts from future adoption of this guidance and has determined that there will be no impact on its financial position, results of operations and cash flows. Improvements to Employee Share-Based Payment Accounting In March 2016, the FASB issued guidance that simplifies several areas of employee share-based payment accounting, including income taxes, forfeitures, minimum statutory withholding requirements and classifications within the statement of cash flows. Most significantly, the new guidance eliminates the need to track tax “windfalls” in a separate pool within additional paid-in capital; instead, excess tax benefits and tax deficiencies will be recorded within income tax expense. The new guidance also gives entities the ability to elect whether to estimate forfeitures or account for them as they occur. Different adoption methods are required for the various aspects of the new guidance, including the retrospective, modified retrospective and prospective approaches, effective for annual periods beginning after December 15, 2016 and interim periods within those annual periods. The Company does not expect the guidance to have a significant impact on its financial position, results of operations and cash flows. Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments In August 2016, the FASB issued guidance to eliminate the diversity in practice related to the classification of certain cash receipts and payments in the statement of cash flows, by adding or clarifying guidance on eight specific cash flow issues. This guidance is effective for annual and interim reporting periods beginning after December 15, 2017, with early adoption permitted. The Company is in the process of assessing the potential impacts of adopting this guidance on its statement of cash flows. Statement of Cash Flows: Restricted Cash In November 2016, the FASB issued guidance requiring restricted cash and cash equivalents to be included with cash and cash equivalents on the statement cash flows. This guidance is effective for annual and interim reporting periods beginning after December 15, 2017, with early adoption permitted. The Company is in the process of assessing the potential impacts of adopting this guidance on its statement of cash flows. Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory In October 2016, the FASB issued guidance requiring an entity to recognize upon transfer the income tax consequences of an intra-entity transfer of an asset other than inventory, eliminating the current recognition exception. Two common examples of assets included in the scope of this standard are intellectual property and property, plant and equipment. The standard is effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within those annual reporting periods. The Company has not yet determined the potential impacts of adopting this guidance on its financial position, results of operations and cash flows. Simplifying the Test for Goodwill Impairment In January 2017, the FASB issued guidance to simplify the subsequent measurement of goodwill by removing the second step of the two-step impairment test. The guidance requires that an entity recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. This guidance is effective for annual and interim periods beginning after December 15, 2019, with early adoption permitted. The Company has not yet determined the potential impacts of adopting this guidance on its financial position, results of operations and cash flows. |
Basis of Presentation and Rec33
Basis of Presentation and Recently Issued Accounting Pronouncements Basis of Presentation and Recently Issued Accounting Pronouncements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Impact of Revisions to Items Previously Reported by Company | The table below reflects the impact of the revisions to amounts included in this Report that were previously reported by the Company and also reflects the retroactive impact of the June 30, 2016 stock split, as described above under the heading " Stock Split " (in millions). December 31, 2015 As Previously Reported Adjustments Impact of Stock Split As Revised Consolidated Balance Sheets Prepaid expenses and other current assets $ 20.8 $ (9.8 ) $ — $ 11.0 Additional paid-in capital 3,843.1 (112.8 ) 4.3 3,734.6 Accumulated other comprehensive loss (238.4 ) 103.0 — (135.4 ) Year Ended December 31, 2015 As Previously Reported Adjustments As Revised Consolidated Statements of Other Comprehensive Income (Loss) Total other comprehensive income (loss) $ (136.0 ) $ 32.9 $ (103.1 ) Total comprehensive income (loss) (24.7 ) 32.9 8.2 Year Ended December 31, 2014 As Previously Reported Adjustments As Revised Consolidated Statements of Other Comprehensive Income (Loss) Total other comprehensive income (loss) $ (56.7 ) $ 57.3 $ 0.6 Total comprehensive income (loss) 33.0 57.3 90.3 December 31, 2015 As Previously Reported Adjustments Impact of Stock Split As Revised Consolidated Statements of Changes in Equity Additional paid-in capital $ 3,843.1 $ (112.8 ) $ 4.3 $ 3,734.6 Accumulated other comprehensive loss (238.4 ) 103.0 — (135.4 ) December 31, 2014 As Previously Reported Adjustments Impact of Stock Split As Revised Consolidated Statements of Changes in Equity Additional paid-in capital $ 2,607.4 $ (81.7 ) $ 4.3 $ 2,530.0 Accumulated other comprehensive loss (102.4 ) 70.1 — (32.3 ) December 31, 2013 As Previously Reported Adjustments Impact of Stock Split As Revised Consolidated Statements of Changes in Equity Additional paid-in capital $ 2,812.6 $ (12.8 ) $ 4.2 $ 2,804.0 Accumulated other comprehensive loss (45.7 ) 12.8 — (32.9 ) Year Ended December 31, 2015 As Previously Reported Adjustments As Revised Consolidated Statements of Cash Flows Net cash provided by operating activities $ 498.1 $ (1.8 ) $ 496.3 Net cash used in financing activities (107.2 ) 1.8 (105.4 ) Year Ended December 31, 2014 As Previously Reported Adjustments As Revised Consolidated Statements of Cash Flows Net cash provided by operating activities $ 457.6 $ 11.6 $ 469.2 Net cash used in financing activities (22.4 ) (11.6 ) (34.0 ) |
Schedule of Useful Lives | Useful lives are as follows: Buildings 8 to 33 years Service vehicles 3 to 13 years Machinery and equipment 1 to 15 years Computer equipment 1 to 5 years Furniture and fixtures 2 to 10 years Leasehold improvements The lesser of the economic life or the lease term Property and equipment consists of the following (in millions): December 31, 2016 December 31, 2015 Land and buildings $ 108.8 $ 108.0 Service vehicles 242.6 207.5 Leasehold improvements 57.1 56.7 Machinery and equipment 21.6 22.5 Computer equipment and software 35.1 32.4 Furniture and fixtures 4.0 4.0 Construction in progress 23.7 11.3 Property and equipment, gross 492.9 442.4 Less: accumulated depreciation and amortization (220.9 ) (195.8 ) Property and equipment, net $ 272.0 $ 246.6 |
Revenue Earning Equipment (Tabl
Revenue Earning Equipment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property Subject to or Available for Operating Lease, Net [Abstract] | |
Components of Revenue Earning Equipment | Revenue earning equipment consists of the following (in millions): December 31, 2016 December 31, 2015 Revenue earning equipment $ 3,695.5 $ 3,526.2 Less: Accumulated depreciation (1,305.5 ) (1,143.7 ) Revenue earning equipment, net $ 2,390.0 $ 2,382.5 The capitalized cost of refurbishing revenue earning equipment were as follows (in millions): Years Ended December 31, 2016 2015 2014 Capitalized cost of refurbishments $ 6.5 $ 40.1 $ 45.5 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Useful lives are as follows: Buildings 8 to 33 years Service vehicles 3 to 13 years Machinery and equipment 1 to 15 years Computer equipment 1 to 5 years Furniture and fixtures 2 to 10 years Leasehold improvements The lesser of the economic life or the lease term Property and equipment consists of the following (in millions): December 31, 2016 December 31, 2015 Land and buildings $ 108.8 $ 108.0 Service vehicles 242.6 207.5 Leasehold improvements 57.1 56.7 Machinery and equipment 21.6 22.5 Computer equipment and software 35.1 32.4 Furniture and fixtures 4.0 4.0 Construction in progress 23.7 11.3 Property and equipment, gross 492.9 442.4 Less: accumulated depreciation and amortization (220.9 ) (195.8 ) Property and equipment, net $ 272.0 $ 246.6 |
Schedule of Property and Equipment and Related Amortization Recorded Under Capital Leases | The gross amounts of property and equipment and related amortization recorded under capital leases, included in service vehicles in the table above, were as follows (in millions): December 31, 2016 December 31, 2015 Service vehicles $ 109.9 $ 88.9 Less accumulated amortization (41.8 ) (28.7 ) $ 68.1 $ 60.2 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill Rollforward | The following summarizes the changes in the Company's goodwill (in millions): Year Ended December 31, 2016 2015 Balance at the beginning of the period: Goodwill $ 765.9 $ 770.0 Accumulated impairment losses (674.9 ) (674.9 ) 91.0 95.1 Sale of France and Spain operations — (4.4 ) Currency translation — 0.3 — (4.1 ) Balance at the end of the period: Goodwill 765.9 765.9 Accumulated impairment losses (674.9 ) (674.9 ) $ 91.0 $ 91.0 |
Intangible Assets, Net (Finite Lived) | ntangible assets, net, consisted of the following major classes (in millions): December 31, 2016 Gross Carrying Amount Accumulated Amortization Net Carrying Value Amortizable intangible assets: Customer-related $ 14.8 $ (7.7 ) $ 7.1 Other (a) 34.8 (4.0 ) 30.8 Total 49.6 (11.7 ) 37.9 Indefinite-lived intangible assets: Trade name 266.0 — 266.0 Total intangible assets, net $ 315.6 $ (11.7 ) $ 303.9 (a) Other amortizable intangible assets primarily consists of internally developed software, of which $26.0 million has yet to be placed into service. December 31, 2015 Gross Carrying Accumulated Net Carrying Value Amortizable intangible assets: Customer-related $ 354.5 $ (344.0 ) $ 10.5 Other (a) 35.0 (11.0 ) 24.0 Total 389.5 (355.0 ) 34.5 Indefinite-lived intangible assets: Trade name 266.0 — 266.0 Total intangible assets, net $ 655.5 $ (355.0 ) $ 300.5 (a) Other amortizable intangible assets primarily consist of non-compete agreements and internally developed software. |
Intangible Assets, Net (Indefinite-Lived) | Intangible assets, net, consisted of the following major classes (in millions): December 31, 2016 Gross Carrying Amount Accumulated Amortization Net Carrying Value Amortizable intangible assets: Customer-related $ 14.8 $ (7.7 ) $ 7.1 Other (a) 34.8 (4.0 ) 30.8 Total 49.6 (11.7 ) 37.9 Indefinite-lived intangible assets: Trade name 266.0 — 266.0 Total intangible assets, net $ 315.6 $ (11.7 ) $ 303.9 (a) Other amortizable intangible assets primarily consists of internally developed software, of which $26.0 million has yet to be placed into service. December 31, 2015 Gross Carrying Accumulated Net Carrying Value Amortizable intangible assets: Customer-related $ 354.5 $ (344.0 ) $ 10.5 Other (a) 35.0 (11.0 ) 24.0 Total 389.5 (355.0 ) 34.5 Indefinite-lived intangible assets: Trade name 266.0 — 266.0 Total intangible assets, net $ 655.5 $ (355.0 ) $ 300.5 (a) Other amortizable intangible assets primarily consist of non-compete agreements and internally developed software. |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consists of the following (in millions): December 31, 2016 December 31, 2015 Accrued compensation and benefit costs $ 29.2 $ 9.1 National accounts accrual 23.3 23.1 Accrued interest 9.1 0.3 Other 16.6 15.3 Total accrued liabilities $ 78.2 $ 47.8 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The Company's debt consists of the following (in millions): Weighted Average Effective Interest Rate at December 31, 2016 Weighted Average Stated Interest Rate at December 31, 2016 Fixed or Floating Interest Rate Maturity December 31, December 31, Senior Secured Second Priority Notes 2022 Notes 7.88% 7.50% Fixed 2022 $ 610.0 $ — 2024 Notes 8.06% 7.75% Fixed 2024 625.0 — Other Debt ABL Credit Facility N/A 2.54% Floating 2021 910.0 — Capital leases 3.99% N/A Fixed 2017-2021 70.3 63.5 Predecessor ABL Facility (as defined below) N/A N/A Floating N/A — — Unamortized Debt Issuance Costs (a) (21.0 ) — Total debt 2,194.3 63.5 Less: Current maturities of long-term debt (15.7 ) (10.2 ) Long-term debt $ 2,178.6 $ 53.3 (a) Unamortized debt issuance costs totaling $17.1 million related to the ABL Credit Facility (as defined below) are included in "Other long-term assets" in the consolidated balance sheet as of December 31, 2016 . |
Nominal Principal Amounts of Maturities of Debt | The nominal principal amounts of maturities of debt for each of the periods ending December 31 are as follows (in millions): 2017 $ 15.7 2018 20.6 2019 22.5 2020 11.5 2021 910.0 After 2021 1,235.0 Total $ 2,215.3 |
Borrowing Capacity and Availability on Line of Credit | After outstanding borrowings, the following was available to the Company under the ABL Credit Facility as of December 31, 2016 (in millions): Remaining Capacity Availability Under Borrowing Base Limitation ABL Credit Facility $ 817.1 $ 817.1 |
Employee Retirement Benefits (T
Employee Retirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Changes in Projected Benefit Obligation, Changes in Plan Assets and Funded Status of Plan | The following table provides a reconciliation of benefit obligations and plan assets of the Company’s pension plans and postretirement benefit plans (in millions): Pension Postretirement 2016 2015 2016 2015 Change in Projected Benefit Obligations Benefit obligation at beginning of year $ 143.0 $ 144.9 $ 1.0 $ 0.9 Service cost 0.1 0.1 — — Interest cost 5.8 5.6 — — Employee contributions — — 0.1 0.1 Plan curtailments — (0.2 ) — — Plan settlements (0.1 ) (1.4 ) — — Benefits paid (3.7 ) (6.1 ) (0.1 ) (0.1 ) Net transfer (1) 3.6 4.4 — 0.1 Actuarial loss (gain) 0.7 (4.3 ) — — Benefit obligation at end of year $ 149.4 $ 143.0 $ 1.0 $ 1.0 Change in Fair Value of Plan Assets Fair value of plan assets at beginning of year $ 124.3 $ 130.1 $ — $ — Actual return on plan assets 9.4 (4.0 ) — — Company contributions 0.1 1.4 — 0.1 Employee contributions — — 0.1 — Plan settlements (0.1 ) (1.4 ) — — Benefits paid (3.7 ) (6.1 ) (0.1 ) (0.1 ) Adjustment (2) 3.2 4.3 — — Fair value of plan assets at end of year $ 133.2 $ 124.3 $ — $ — Funded Status $ (16.2 ) $ (18.7 ) $ (1.0 ) $ (1.0 ) Accumulated benefit obligation $ 149.4 $ 142.1 (1) The benefit obligation is determined each January 1, based upon updated participant information. The net transfer represents a liability adjustment relating to the updated participant information. (2) In connection with the Spin-Off, assets are allocated between THC and the Company in proportion to the associated liability. This represents an adjustment to assets based on the updated liability. |
Schedule of Amounts Recognized in Balance Sheet | Pension Postretirement 2016 2015 2016 2015 Amounts Recognized in Balance Sheet Accrued liabilities $ (0.2 ) $ (0.5 ) $ (0.1 ) $ (0.1 ) Other long-term liabilities (16.0 ) (18.2 ) (0.9 ) (0.9 ) Net amount recognized $ (16.2 ) $ (18.7 ) $ (1.0 ) $ (1.0 ) Amounts Recognized in Accumulated Other Comprehensive Loss Net actuarial gain (loss) $ (24.2 ) $ (25.7 ) $ 0.1 $ 0.1 Prior service credits 0.2 0.2 — — Net amount recognized $ (24.0 ) $ (25.5 ) $ 0.1 $ 0.1 Weighted‑Average Assumptions Used to Determine Projected Benefit Obligations Discount rate 4.1 % 4.3 % 4.0 % 4.2 % Average rate of increase in compensation — % 4.3 % — % — % Initial healthcare cost trend rate 6.7 % 6.9 % Ultimate healthcare cost trend rate 4.5 % 4.5 % |
Schedule of Defined Benefit Plan Amounts Recognized in Other Comprehensive Income (Loss) | Pension Postretirement 2016 2015 2016 2015 Amounts Recognized in Balance Sheet Accrued liabilities $ (0.2 ) $ (0.5 ) $ (0.1 ) $ (0.1 ) Other long-term liabilities (16.0 ) (18.2 ) (0.9 ) (0.9 ) Net amount recognized $ (16.2 ) $ (18.7 ) $ (1.0 ) $ (1.0 ) Amounts Recognized in Accumulated Other Comprehensive Loss Net actuarial gain (loss) $ (24.2 ) $ (25.7 ) $ 0.1 $ 0.1 Prior service credits 0.2 0.2 — — Net amount recognized $ (24.0 ) $ (25.5 ) $ 0.1 $ 0.1 Weighted‑Average Assumptions Used to Determine Projected Benefit Obligations Discount rate 4.1 % 4.3 % 4.0 % 4.2 % Average rate of increase in compensation — % 4.3 % — % — % Initial healthcare cost trend rate 6.7 % 6.9 % Ultimate healthcare cost trend rate 4.5 % 4.5 % |
Schedule of Assumptions Used | Pension Postretirement 2016 2015 2016 2015 Amounts Recognized in Balance Sheet Accrued liabilities $ (0.2 ) $ (0.5 ) $ (0.1 ) $ (0.1 ) Other long-term liabilities (16.0 ) (18.2 ) (0.9 ) (0.9 ) Net amount recognized $ (16.2 ) $ (18.7 ) $ (1.0 ) $ (1.0 ) Amounts Recognized in Accumulated Other Comprehensive Loss Net actuarial gain (loss) $ (24.2 ) $ (25.7 ) $ 0.1 $ 0.1 Prior service credits 0.2 0.2 — — Net amount recognized $ (24.0 ) $ (25.5 ) $ 0.1 $ 0.1 Weighted‑Average Assumptions Used to Determine Projected Benefit Obligations Discount rate 4.1 % 4.3 % 4.0 % 4.2 % Average rate of increase in compensation — % 4.3 % — % — % Initial healthcare cost trend rate 6.7 % 6.9 % Ultimate healthcare cost trend rate 4.5 % 4.5 % |
Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets | The benefit obligations and fair value of plan assets for the Company’s qualified and non-qualified pension and postretirement plans with projected benefit obligations or accumulated benefit obligations in excess of plan assets are as follows (in millions): Pension Postretirement 2016 2015 2016 2015 Plans with Benefit Obligations in Excess of Plan Assets Projected benefit obligation $ 149.4 $ 143.0 $ 1.0 $ 1.0 Accumulated benefit obligation 149.4 142.1 — — Fair value of plan assets 133.2 124.3 — — |
Schedule of Net Periodic Costs | The following table sets forth the net periodic pension cost (benefit) (in millions): Years Ended December 31, 2016 2015 2014 Components of Net Periodic Pension Cost (Benefit): Service cost $ 0.1 $ 0.1 $ 5.5 Interest cost 5.8 5.6 6.3 Expected return on plan assets (8.0 ) (8.7 ) (8.4 ) Net amortization of actuarial net loss 1.4 0.3 0.1 Curtailment gain — — (2.4 ) Settlement loss — 0.2 — Net periodic pension cost (benefit) $ (0.7 ) $ (2.5 ) $ 1.1 Weighted‑Average Assumptions Used to Determine Net Periodic Pension Cost (Benefit) Discount rate 4.3 % 3.9 % 4.8 % Expected return on assets 7.2 % 7.4 % 7.6 % Average rate of increase in compensation 4.3 % 4.0 % 4.6 % |
Schedule of Allocation of Plan Assets | The fair value measurements of all plan assets are based upon significant other observable inputs (Level 2), except for cash which is based upon quoted market prices in active markets for identical assets (Level 1). The following represents the Company's pension plan assets (in millions): Asset Category December 31, 2016 December 31, 2015 Cash $ 1.5 $ — Short Term Investments 0.2 1.5 Equity Securities: U.S. Large Cap 34.7 34.2 U.S. Mid Cap 11.3 7.8 U.S. Small Cap 9.5 9.7 International Large Cap 20.8 20.7 International Emerging Markets 6.9 6.3 Asset-Backed Securities 1.2 1.1 Fixed Income Securities: U.S. Treasuries 6.8 13.2 Corporate Bonds 21.4 23.8 Government Bonds 3.5 1.9 Municipal Bonds 3.2 2.2 Mortgage-Backed Securities 1.8 — Real Estate (REITs) — 1.9 122.8 124.3 Assets expected to be received from the Hertz Plan 10.4 — Total fair value of pension plan assets $ 133.2 $ 124.3 |
Schedule of Expected Benefit Payments | The following table presents estimated future benefit payments (in millions): Pension Postretirement 2017 $ 5.7 $ 0.1 2018 6.3 0.1 2019 7.2 0.1 2020 8.2 0.1 2021 8.5 0.1 2022-2026 57.2 0.4 $ 93.1 $ 0.9 |
Schedule of Multiemployer Plans | The Company's participation in multiemployer plans for the annual period ended December 31, 2016 is outlined in the table below. For each plan that is individually significant to the Company, the following information is provided: • The "EIN / Pension Plan Number" column provides the Employer Identification Number assigned to a plan by the Internal Revenue Service. • The "Pension Protection Act Zone Status" available is for plan years that ended in 2016 and 2015. The zone status is based on information provided to the Company and other participating employers by each plan and is certified by the plan's actuary. A plan in the "red" zone has been determined to be in "critical status," based on criteria established under the Internal Revenue Code, or the "Code," and is generally less than 65% funded. A plan in the "yellow" zone has been determined to be in "endangered status," based on criteria established under the Code, and is generally less than 80% funded. A plan in the "green" zone has been determined to be neither in "critical status" nor in "endangered status," and is generally at least 80% funded. • The "FIP/RP Status Pending/Implemented" column indicates whether a Funding Improvement Plan, as required under the Code to be adopted by plans in the "yellow" zone, or a Rehabilitation Plan, as required under the Code to be adopted by plans in the “red” zone, is pending or has been implemented as of the end of the plan year that ended in 2016. • The "Surcharge Imposed" column indicates whether a surcharge was paid during the most recent annual period presented for the Company's contributions to any plan in the red zone in accordance with the requirements of the Code. The last column lists the expiration dates of the collective bargaining agreements pursuant to which the Company contributed to the plans. There are no plans where the amount contributed by the Company represents more than 5% of the total contributions to the plan for the years ended December 31, 2016, 2015 and 2014. (In millions) EIN / Pension Pension FIP / Contributions Surcharge Imposed Expiration Pension Fund 2016 2015 2016 2015 2014 Midwest Operating Engineers 36-6140097 Green Green N/A $ 0.7 $ 0.7 $ 0.5 N/A 8/31/2018 Other Plans (a) 0.8 0.7 0.6 Total Contributions $ 1.5 $ 1.4 $ 1.1 (a) Consists of six plans, none of which are individually significant to the Company. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Components of Stock-Based Compensation Expense | The following table summarizes the expenses and associated income tax benefits recognized (in millions): Years Ended December 31, 2016 2015 2014 Compensation expense $ 5.5 $ 2.7 $ 1.4 Income tax benefit (2.1 ) (1.1 ) (0.5 ) Total $ 3.4 $ 1.6 $ 0.9 |
Summary of Weighted Average Assumptions used in Black Scholes Option Pricing Model | The weighted average assumptions used in the Black-Scholes option pricing model are as follows: Years Ended December 31, 2016 2015 2014 Expected volatility 50% 39% N/A Expected dividend yield —% —% N/A Expected term (years) 4.8 5.0 N/A Risk-free interest rate 1.09% 1.22% N/A |
Summary of Stock Option Activity | A summary of option activity under the Omnibus Plan is presented below. Options Weighted Weighted Aggregate Intrinsic Outstanding at December 31, 2015 134,200 $ 52.11 Granted 429,539 33.28 Exercised (16,702 ) 21.40 Forfeited or expired (17,362 ) 49.18 Outstanding at December 31, 2016 529,675 $ 37.90 Vested and Unvested Expected to Vest at December 31, 2016 418,974 $ 36.54 6.2 $ 2.5 Exercisable at December 31, 2016 49,543 $ 53.54 2.3 $ 0.1 (a) Market price per share on December 30, 2016 , the last trading day of the year, was $40.16 . The intrinsic value is zero for options with exercise prices above market value. |
Stock Options by Exercise Price Range | Stock options as of December 31, 2016 : Options Outstanding Options Exercisable Range of Exercise Prices Number Outstanding Weighted Weighted Number Outstanding Weighted Weighted $20.00-30.00 9,260 $ 27.63 2.4 9,260 $ 27.63 2.4 30.01-40.00 420,759 33.19 6.6 — — 0.0 40.01-50.00 9,350 42.82 5.4 5,133 43.59 4.2 50.01-60.00 54,036 55.64 3.5 13,506 55.64 3.5 60.01-70.00 16,774 64.37 0.4 16,774 64.37 0.4 70.01-80.00 19,496 70.14 3.1 4,870 70.14 3.1 529,675 $ 37.90 49,543 $ 53.54 |
Additional Information Pertaining to Option Activity | Additional information pertaining to stock option activity under the Omnibus Plan is as follows (in millions): Year Ended December 31, 2016 2015 2014 Aggregate intrinsic value of stock options exercised (a) $ 0.1 $ — $ 0.5 Cash received from the exercise of stock options (b) 0.4 — 0.8 Tax benefit realized on exercise of stock options — — 0.2 (a) The intrinsic value is the difference between the market value of the shares on the exercise date and the exercise price of the option. (b) In addition to the cash received in the table above, cash received from exercise of stock options by Hertz Holdings employees prior to the Spin-Off for 2016 , 2015 and 2014 was $9.6 million , $5.1 million and $17.2 million , respectively, as reflected in the accompanying consolidated statements of cash flows. |
Summary of PSU Activity | A summary of the PSU activity under the Omnibus Plan is presented below. Units Weighted Nonvested at December 31, 2015 37,259 $ 62.33 Granted 119,164 29.77 Vested — — Forfeited or expired (11,459 ) 56.51 Nonvested at December 31, 2016 144,964 $ 36.02 |
Summary of RSU Activity | A summary of the RSU activity under the Omnibus Plan is presented below. Units Weighted Nonvested at December 31, 2015 21,206 $ 56.30 Granted 289,575 32.36 Vested (8,820 ) 55.51 Forfeited or expired (4,063 ) 38.99 Nonvested at December 31, 2016 297,898 $ 32.63 |
Income Taxes Income Taxes (Tabl
Income Taxes Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | The components of income (loss) before income taxes for the periods were as follows (in millions): Years Ended December 31, 2016 2015 2014 Domestic $ 2.5 $ 102.4 $ 105.3 Foreign (7.4 ) 54.5 39.2 Income (loss) before income taxes $ (4.9 ) $ 156.9 $ 144.5 |
Summary of Provision for Income Taxes | The provision for income taxes consists of the following (in millions): Years Ended December 31, 2016 2015 2014 Current: Federal $ — $ 15.8 $ 2.4 Foreign 2.4 3.3 16.0 State and local 0.1 4.2 3.0 Total current 2.5 23.3 21.4 Deferred: Federal 3.5 20.4 31.7 Foreign (2.3 ) 0.1 1.1 State and local 11.1 1.8 0.6 Total deferred 12.3 22.3 33.4 Total income tax expense $ 14.8 $ 45.6 $ 54.8 |
Schedule of U.S. and Foreign Deferred Tax Assets and Liabilities | The principal items of the U.S. and foreign net deferred tax assets and liabilities are as follows (in millions): December 31, 2016 December 31, 2015 Deferred tax assets: Employee benefit plans $ 7.1 $ 7.6 Tax credit carryforwards 1.5 0.1 Accrued and prepaid expenses 38.6 32.4 Net operating loss carryforwards 90.7 6.4 Total deferred tax assets 137.9 46.5 Less: valuation allowance (4.5 ) (3.6 ) Total net deferred tax assets 133.4 42.9 Deferred tax liabilities: Deferred state gain (5.5 ) — Depreciation on tangible assets (721.1 ) (673.9 ) Intangible assets (98.9 ) (96.1 ) Total deferred tax liabilities (825.5 ) (770.0 ) Net deferred tax liability $ (692.1 ) $ (727.1 ) |
Reconciliation of Statutory and Effective Tax Rates | The income tax in the accompanying consolidated statements of operations differs from the income tax calculated by applying the statutory federal income tax rate of 35.0% to income (loss) before income taxes due to the following (in millions): Years Ended December 31, 2016 2015 2014 Income Tax at Statutory Rate $ (1.7 ) $ 54.9 $ 50.6 Increases (Decreases) Resulting From: Foreign tax differential 0.7 (0.3 ) (8.8 ) Foreign local taxes — 0.8 1.2 Foreign rate changes 0.1 1.7 3.2 State and local income taxes, net of federal income tax benefit 9.5 5.0 (0.1 ) Change in state statutory rates, net of federal income tax benefit 1.7 (0.5 ) 5.3 Federal and foreign permanent differences 3.2 (0.3 ) 0.9 Change in valuation allowance 1.3 3.8 (0.3 ) Benefit from sale of non-U.S. operations — (20.4 ) — All other items, net — 0.9 2.8 Income Tax Expense $ 14.8 $ 45.6 $ 54.8 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Leases [Abstract] | |
Schedule of Rent Expense | The Company has various operating leases under which the following amounts were expensed (in millions): Years Ended December 31, 2016 2015 2014 Real estate $ 31.8 $ 31.5 $ 32.1 Office and computer equipment 1.2 1.7 2.1 33.0 33.2 34.2 Sublease income (0.5 ) (0.5 ) (0.7 ) Total $ 32.5 $ 32.7 $ 33.5 |
Minimum Obligations Under Operating Lease Agreements | As of December 31, 2016, minimum obligations under existing agreements referred to above are as follows (in millions): 2017 $ 29.3 2018 26.7 2019 20.8 2020 14.3 2021 9.3 After 2021 36.0 Total $ 136.4 |
Future Minimum Capital Lease Payments | As of December 31, 2016, future minimum capital lease payments for existing agreements referred to above are as follows (in millions): 2017 $ 18.3 2018 22.5 2019 23.6 2020 11.9 Total minimum lease payments 76.3 Less amount representing interest (at a weighted-average interest rate of 3.99%) (6.0 ) Total capital lease obligations $ 70.3 |
Accumulated Other Comprehensi43
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The changes in the accumulated other comprehensive income (loss) balance by component (net of tax) are presented in the tables below (in millions). Pension and Other Post-Employment Benefits Foreign Currency Items Accumulated Other Comprehensive Income (Loss) Balance at December 31, 2015 $ (15.5 ) $ (119.9 ) $ (135.4 ) Other comprehensive income before reclassification — 15.8 15.8 Amounts reclassified from accumulated other comprehensive loss 0.9 — 0.9 Net current period other comprehensive income 0.9 15.8 16.7 Balance at December 31, 2016 $ (14.6 ) $ (104.1 ) $ (118.7 ) Pension and Other Post-Employment Benefits Foreign Currency Items Accumulated Other Comprehensive Income (Loss) Balance at December 31, 2014 $ (10.8 ) $ (21.5 ) $ (32.3 ) Other comprehensive loss before reclassification (5.0 ) (56.8 ) (61.8 ) Amounts reclassified from accumulated other comprehensive loss 0.3 (41.6 ) (41.3 ) Net current period other comprehensive loss (4.7 ) (98.4 ) (103.1 ) Balance at December 31, 2015 $ (15.5 ) $ (119.9 ) $ (135.4 ) |
Reclassification out of Accumulated Other Comprehensive Income | Amounts reclassified from accumulated other comprehensive income (loss) to net income (loss) were as follows (in millions): Years Ended December 31, 2016 2015 2014 Statement of Operations Caption Amortization of actuarial losses $ 1.4 $ 0.3 $ 0.1 Selling, general and administrative Settlement loss — 0.2 — Selling, general and administrative Curtailment gain — — (2.4 ) Selling, general and administrative Reclassification of foreign currency items to other (income) expense (a) — (41.6 ) — Other (income) expense Total 1.4 (41.1 ) (2.3 ) Tax expense (benefit) (0.5 ) (0.2 ) 0.9 Income tax expense Total reclassifications for the period $ 0.9 $ (41.3 ) $ (1.4 ) (a) Related to the sale of the Company's operations in France and Spain in October 2015, see Note 6 , " Divestitures ." |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | The Company incurred the following restructuring costs (in millions): Years Ended December 31, 2016 2015 2014 By Type: Termination benefits $ 1.8 $ 2.8 $ 2.0 Facility closure and lease obligation costs 2.2 1.5 3.0 Relocation costs — — 0.7 Total $ 4.0 $ 4.3 $ 5.7 |
Schedule of Restructuring Reserve | The following table sets forth the activity affecting the restructuring accrual during the years ended December 31, 2016 and 2015 (in millions). The Company expects to pay the remaining restructuring obligations relating to termination benefits over the next 12 months. The remainder of the restructuring accrual relates to future lease obligations which will be paid over the remaining term of the applicable leases. Termination Other Total Balance as of December 31, 2014 $ 0.8 $ 2.6 $ 3.4 Charges incurred 2.8 1.5 4.3 Cash payments (2.4 ) (2.8 ) (5.2 ) Balance as of December 31, 2015 $ 1.2 $ 1.3 $ 2.5 Charges incurred 1.8 2.2 4.0 Cash payments (2.8 ) (2.8 ) (5.6 ) Balance as of December 31, 2016 $ 0.2 $ 0.7 $ 0.9 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Estimated Fair Value of Financial Instruments | The following table summarizes the estimated fair value of the Company's financial instruments, none of which have been designated in a hedging relationship (in millions): Fair Value of Financial Instruments Prepaid Expenses and Other Current Assets Accrued Liabilities December 31, December 31, December 31, December 31, Foreign currency forward contracts $ 0.1 $ 0.1 $ — $ — |
Gain (Losses) on Derivative Instruments | The following table summarizes the gains (losses) on derivative instruments for the periods indicated (in millions): Years Ended December 31, 2016 2015 2014 Foreign currency forward contracts $ 5.0 $ (5.9 ) $ (0.5 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Cash Equivalents | The following table summarizes the ending balance of the Company's cash equivalents (in millions): December 31, 2016 December 31, 2015 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Money market funds $ — $ — $ — $ — $ 13.5 $ — $ — $ 13.5 |
Fair Value of Debt | December 31, 2016 December 31, 2015 Nominal Unpaid Principal Balance Aggregate Fair Value Nominal Unpaid Principal Balance Aggregate Fair Value Debt $ 2,215.3 $ 2,275.5 $ 63.5 $ 63.5 |
Equity and Earnings (Loss) Pe47
Equity and Earnings (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings (Loss) Per Share, Basic and Diluted | The following table sets forth the computation of basic and diluted earnings (loss) per share (in millions, except per share data). Year Ended December 31, 2016 2015 2014 Basic and diluted earnings (loss) per share: Numerator: Net income (loss), basic $ (19.7 ) $ 111.3 $ 89.7 Interest on convertible senior notes, net of tax — — 1.1 Net income (loss), diluted $ (19.7 ) $ 111.3 $ 90.8 Denominator: Basic weighted average common shares 28.3 30.2 30.3 Stock options, RSUs and PSUs (a) — — — Issuance of common stock upon conversion of convertible senior notes — — 1.3 Weighted average shares used to calculate diluted earnings per share 28.3 30.2 31.6 Earnings (loss) per share: Basic $ (0.70 ) $ 3.69 $ 3.00 Diluted $ (0.70 ) $ 3.69 $ 2.87 Antidilutive stock options, RSUs and PSUs (a) 0.3 — — (a) The dilutive impact of stock options, RSUs and PSUs for the years ended December 31, 2016, 2015 and 2014 and antidilutive impact for the years ended December 31, 2015 and 2014, rounds to zero for each period. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Schedule of Costs Incurred and Allocated | Costs incurred and allocated by THC were included in the consolidated statements of operations as follows (in millions): Years Ended December 31, 2016 2015 2014 Direct operating $ 0.6 $ (0.9 ) $ 2.2 Selling, general and administrative 18.0 36.0 44.5 Total allocated expenses $ 18.6 $ 35.1 $ 46.7 |
Segment (Tables)
Segment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Geographical Information for Long-Lived Assets | Geographic information for long-lived assets, which consist primarily of revenue earning equipment and property and equipment, was as follows (in millions): December 31, 2016 December 31, 2015 Total assets at end of year United States $ 3,203.3 $ 2,584.8 International 260.0 812.2 Total $ 3,463.3 $ 3,397.0 Revenue earning equipment, net, at end of year United States $ 2,111.0 $ 2,081.9 International 279.0 300.6 Total $ 2,390.0 $ 2,382.5 Property and equipment, net, at end of year United States $ 243.2 $ 214.9 International 28.8 31.7 Total $ 272.0 $ 246.6 |
Quarterly Financial Informati50
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Operating Results | First Quarter Second Quarter Third Quarter Fourth Quarter (In millions, except per share data) 2016 2016 2016 2016 Revenues $ 365.6 $ 380.4 $ 403.6 $ 405.2 Income (loss) before income taxes (1.5 ) (2.7 ) 6.7 (7.4 ) Net income (loss) (1.5 ) (8.0 ) 3.0 (13.2 ) Earnings (loss) per share: Basic $ (0.05 ) $ (0.28 ) $ 0.11 $ (0.47 ) Diluted $ (0.05 ) $ (0.28 ) $ 0.11 $ (0.47 ) First Quarter Second Quarter Third Quarter Fourth Quarter (In millions, except per share data) 2015 2015 2015 2015 Revenues $ 401.3 $ 422.7 $ 431.8 $ 422.4 Income before income taxes 6.7 19.6 35.5 95.1 Net income 1.7 10.6 20.8 78.2 Earnings per share: Basic $ 0.06 $ 0.35 $ 0.69 $ 2.68 Diluted $ 0.06 $ 0.35 $ 0.69 $ 2.68 |
Background (Details)
Background (Details) - company_operated_branch | Jun. 30, 2016 | Dec. 31, 2016 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Number of company-operated branches | 270 | |
Ratio of dividends to stockholders of issued and outstanding common stock | 20.00% |
Basis of Presentation and Rec52
Basis of Presentation and Recently Issued Accounting Pronouncements - Stock Split (Details) shares in Millions, $ in Millions | Jun. 30, 2016shares | Dec. 31, 2016USD ($)shares | Dec. 31, 2015USD ($)shares | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) |
Class of Stock [Line Items] | |||||
Stock split conversion ratio | 0.0667 | ||||
Common Stock, shares authorized (in shares) | shares | 133.3 | 133.3 | 133.3 | ||
Preferred Stock, shares authorized (in shares) | shares | 13.3 | 13.3 | 13.3 | ||
Impact to common stock | $ 0.3 | $ 0.3 | |||
Impact on additional paid-in capital | $ 1,753.3 | 3,734.6 | $ 2,530 | $ 2,804 | |
Adjustments | |||||
Class of Stock [Line Items] | |||||
Impact on additional paid-in capital | (112.8) | ||||
Impact of Stock Split | Adjustments | |||||
Class of Stock [Line Items] | |||||
Impact to common stock | (4.3) | (4.3) | (4.2) | ||
Impact on additional paid-in capital | $ 4.3 | $ 4.3 | $ 4.2 |
Basis of Presentation and Rec53
Basis of Presentation and Recently Issued Accounting Pronouncements - Correction of Errors (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Prepaid expenses and other current assets | $ 15.9 | $ 11 | ||
Additional paid-in capital | 1,753.3 | 3,734.6 | $ 2,530 | $ 2,804 |
Accumulated other comprehensive loss | (118.7) | (135.4) | (32.3) | (32.9) |
Total other comprehensive income (loss) | 16.7 | (103.1) | 0.6 | |
Total comprehensive income (loss) | (3) | 8.2 | 90.3 | |
Net cash provided by operating activities | 433.4 | 496.3 | 469.2 | |
Net cash used in financing activities | (38.7) | (105.4) | (34) | |
Selling, general and administrative | (275) | (265.5) | (251.4) | |
Direct operating | (651.4) | (711.2) | (716.1) | |
Cash paid for interest | $ 70.7 | 27.7 | 36.1 | |
As Previously Reported | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Prepaid expenses and other current assets | 20.8 | |||
Additional paid-in capital | 3,843.1 | 2,607.4 | 2,812.6 | |
Accumulated other comprehensive loss | (238.4) | (102.4) | (45.7) | |
Total other comprehensive income (loss) | (136) | (56.7) | ||
Total comprehensive income (loss) | (24.7) | 33 | ||
Net cash provided by operating activities | 498.1 | 457.6 | ||
Net cash used in financing activities | (107.2) | (22.4) | ||
Adjustments | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Prepaid expenses and other current assets | (9.8) | |||
Additional paid-in capital | (112.8) | |||
Accumulated other comprehensive loss | 103 | |||
Adjustments | Historical Mapping of Entities Related to Spin-Off | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Additional paid-in capital | (112.8) | (81.7) | (12.8) | |
Accumulated other comprehensive loss | 103 | 70.1 | 12.8 | |
Total other comprehensive income (loss) | 32.9 | 57.3 | ||
Total comprehensive income (loss) | 32.9 | 57.3 | ||
Net cash provided by operating activities | (1.8) | 11.6 | ||
Net cash used in financing activities | 1.8 | (11.6) | ||
Adjustments | Reclassification Between SG&A and Direct Operating Expenses due to Incorrect Mapping | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Selling, general and administrative | 5 | 5 | ||
Direct operating | (5) | (5) | ||
Adjustments | Reclassification Between Direct Operating Expenses and SG&A due to Incorrect Mapping [Member] | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Selling, general and administrative | (2.8) | (2.8) | ||
Direct operating | 2.8 | 2.8 | ||
Adjustments | Incorrect Mapping of Certain Interest Accounts | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Cash paid for interest | 23.7 | 10.8 | ||
Impact of Stock Split | Adjustments | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Prepaid expenses and other current assets | 0 | |||
Additional paid-in capital | 4.3 | 4.3 | 4.2 | |
Accumulated other comprehensive loss | $ 0 | $ 0 | $ 0 |
Basis of Presentation and Rec54
Basis of Presentation and Recently Issued Accounting Pronouncements - Revenue Earning Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property Subject to or Available for Operating Lease [Line Items] | |||
Impairment charge | $ 0 | $ 0 | $ 9.6 |
Minimum | |||
Property Subject to or Available for Operating Lease [Line Items] | |||
Holding period for revenue earning equipment | 2 years | ||
Maximum | |||
Property Subject to or Available for Operating Lease [Line Items] | |||
Holding period for revenue earning equipment | 15 years |
Basis of Presentation and Rec55
Basis of Presentation and Recently Issued Accounting Pronouncements - Property and Equipment (Details) | 12 Months Ended |
Dec. 31, 2016 | |
Building | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment useful life | 8 years |
Building | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment useful life | 33 years |
Service vehicles | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment useful life | 3 years |
Service vehicles | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment useful life | 13 years |
Machinery and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment useful life | 1 year |
Machinery and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment useful life | 15 years |
Computer equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment useful life | 1 year |
Computer equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment useful life | 5 years |
Furniture and fixtures | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment useful life | 2 years |
Furniture and fixtures | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment useful life | 10 years |
Basis of Presentation and Rec56
Basis of Presentation and Recently Issued Accounting Pronouncements - Goodwill and Indefinite-Lived Intangible Assets and Finite Lived Intangible and Long-Lived Assets (Details) | 12 Months Ended |
Dec. 31, 2016reporting_unit | |
Finite-Lived Intangible Assets [Line Items] | |
Number of reporting units | 1 |
Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated economic lives | 5 years |
Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated economic lives | 10 years |
Basis of Presentation and Rec57
Basis of Presentation and Recently Issued Accounting Pronouncements - Advertising (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accounting Policies [Abstract] | |||
Advertising costs | $ 3.6 | $ 2.9 | $ 3.3 |
Basis of Presentation and Rec58
Basis of Presentation and Recently Issued Accounting Pronouncements - Stock Based Compensation (Details) - Performance Stock Units | 12 Months Ended |
Dec. 31, 2016 | |
Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Service period | 2 years |
Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Service period | 4 years |
Revenue Earning Equipment - Rev
Revenue Earning Equipment - Revenue Earning Equipment Components (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Property Subject to or Available for Operating Lease, Net [Abstract] | ||
Revenue earning equipment | $ 3,695.5 | $ 3,526.2 |
Less: Accumulated depreciation | (1,305.5) | (1,143.7) |
Revenue earning equipment, net | $ 2,390 | $ 2,382.5 |
Revenue Earning Equipment - Nar
Revenue Earning Equipment - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property Subject to or Available for Operating Lease [Line Items] | |||
Depreciation of revenue earning equipment | $ 350,500,000 | $ 343,700,000 | $ 340,000,000 |
Impact of Depreciation Rate Changes | |||
Property Subject to or Available for Operating Lease [Line Items] | |||
Depreciation of revenue earning equipment | $ 9,400,000 | $ 1,900,000 | $ 0 |
Revenue Earning Equipment - Cos
Revenue Earning Equipment - Cost of Refurbishments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property Subject to or Available for Operating Lease, Net [Abstract] | |||
Capitalized cost of refurbishments | $ 6.5 | $ 40.1 | $ 45.5 |
Property and Equipment - Compon
Property and Equipment - Components of Property and Equipment (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, at cost | $ 492.9 | $ 442.4 |
Less: accumulated depreciation and amortization | (220.9) | (195.8) |
Property and equipment, net | 272 | 246.6 |
Land and buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, at cost | 108.8 | 108 |
Service vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, at cost | 242.6 | 207.5 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, at cost | 57.1 | 56.7 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, at cost | 21.6 | 22.5 |
Computer equipment and software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, at cost | 35.1 | 32.4 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, at cost | 4 | 4 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, at cost | $ 23.7 | $ 11.3 |
Property and Equipment - Narrat
Property and Equipment - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 39.7 | $ 39.6 | $ 36.3 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment and Related Amortization Recorded Under Capital Leases (Details) - Service vehicles - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||
Capital leased assets, gross | $ 109.9 | $ 88.9 |
Less accumulated amortization | (41.8) | (28.7) |
Capital leases, net | $ 68.1 | $ 60.2 |
Goodwill and Intangible Asset65
Goodwill and Intangible Assets - Goodwill Rollforward (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill [Roll Forward] | ||
Goodwill, gross at beginning of period | $ 765.9 | $ 770 |
Accumulated impairment losses | (674.9) | (674.9) |
Goodwill, net at beginning of period | 91 | 95.1 |
Sale of France and Spain operations | 0 | (4.4) |
Other changes during the period | 0 | 0.3 |
Goodwill, period increase (decrease) | 0 | (4.1) |
Goodwill, gross at end of period | 765.9 | 765.9 |
Accumulated impairment losses | (674.9) | (674.9) |
Goodwill, net at end of period | $ 91 | $ 91 |
Goodwill and Intangible Asset66
Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Amortizable intangible assets: | ||
Amortizable intangible assets, gross carrying amount | $ 49.6 | $ 389.5 |
Amortizable intangible assets, accumulated amortization | (11.7) | (355) |
Amortizable intangible assets, net carrying value | 37.9 | 34.5 |
Total other intangible assets, gross carrying amount | 315.6 | 655.5 |
Total intangible assets, net | 303.9 | 300.5 |
Trade name | ||
Indefinite-lived intangible assets: | ||
Indefinite-lived intangible assets | 266 | 266 |
Internally Developed Software | ||
Amortizable intangible assets: | ||
Amortizable intangible assets, net carrying value | 26 | |
Customer-related | ||
Amortizable intangible assets: | ||
Amortizable intangible assets, gross carrying amount | 14.8 | 354.5 |
Amortizable intangible assets, accumulated amortization | (7.7) | (344) |
Amortizable intangible assets, net carrying value | 7.1 | 10.5 |
Other | ||
Amortizable intangible assets: | ||
Amortizable intangible assets, gross carrying amount | 34.8 | 35 |
Amortizable intangible assets, accumulated amortization | (4) | (11) |
Amortizable intangible assets, net carrying value | $ 30.8 | $ 24 |
Goodwill and Intangible Asset67
Goodwill and Intangible Assets - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill impairment | $ 0 | $ 0 | |
Indefinite-lived intangible asset impairment | 0 | 0 | |
Amortization of intangible assets | 5,100,000 | 37,600,000 | $ 38,800,000 |
Amortizable intangible assets, net carrying value | 37,900,000 | $ 34,500,000 | |
Intangible Assets, Excluding Internally Developed Software Yet To Be Placed Into Service | |||
Finite-Lived Intangible Assets [Line Items] | |||
2,017 | 3,200,000 | ||
2,018 | 2,900,000 | ||
2,019 | 2,100,000 | ||
2,020 | 1,900,000 | ||
2,021 | 1,300,000 | ||
Thereafter | 500,000 | ||
Amortizable intangible assets, net carrying value | $ 11,900,000 |
Divestitures - (Details)
Divestitures - (Details) $ in Millions | Oct. 30, 2015USD ($)branch | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Gain on disposal of business | $ 0 | $ (50.9) | $ 0 | |
France and Spain Operations | Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Gain on disposal of business | $ (50.9) | |||
Release of currency translation adjustments from accumulated other comprehensive loss | $ 41.6 | |||
France Operation | Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Number of locations sold | branch | 60 | |||
Spain Operation | Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Number of locations sold | branch | 2 |
Accrued Liabilities - Schedule
Accrued Liabilities - Schedule of Accrued Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Payables and Accruals [Abstract] | ||
Accrued compensation and benefit costs | $ 29.2 | $ 9.1 |
National accounts accrual | 23.3 | 23.1 |
Accrued interest | 9.1 | 0.3 |
Other | 16.6 | 15.3 |
Total accrued liabilities | $ 78.2 | $ 47.8 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Debt, gross | $ 2,215.3 | |
Unamortized Debt Issuance Costs | (21) | $ 0 |
Total debt | 2,194.3 | 63.5 |
Less: Current maturities of long-term debt | (15.7) | (10.2) |
Long-term debt | $ 2,178.6 | 53.3 |
Senior Secured Second Priority Notes | 2022 Notes | ||
Debt Instrument [Line Items] | ||
Weighted Average Effective Interest Rate at December 31, 2016 | 7.88% | |
Weighted Average Stated Interest Rate at December 31, 2016 | 7.50% | |
Debt, gross | $ 610 | 0 |
Senior Secured Second Priority Notes | 2024 Notes | ||
Debt Instrument [Line Items] | ||
Weighted Average Effective Interest Rate at December 31, 2016 | 8.06% | |
Weighted Average Stated Interest Rate at December 31, 2016 | 7.75% | |
Debt, gross | $ 625 | 0 |
Capital leases | Capital leases | ||
Debt Instrument [Line Items] | ||
Weighted Average Effective Interest Rate at December 31, 2016 | 3.99% | |
Debt, gross | $ 70.3 | 63.5 |
Senior Secured Revolving Credit Facility | Line of Credit | ABL Credit Facility | ||
Debt Instrument [Line Items] | ||
Weighted Average Stated Interest Rate at December 31, 2016 | 2.54% | |
Debt, gross | $ 910 | 0 |
Senior Secured Revolving Credit Facility | Line of Credit | Predecessor ABL Facility | ||
Debt Instrument [Line Items] | ||
Debt, gross | 0 | $ 0 |
Other long-term assets | Senior Secured Revolving Credit Facility | Line of Credit | ABL Credit Facility | ||
Debt Instrument [Line Items] | ||
Unamortized debt issuance costs related to credit facility | $ 17.1 |
Debt - Nominal Principal Amount
Debt - Nominal Principal Amounts of Debt Maturities (Details) $ in Millions | Dec. 31, 2016USD ($) |
Debt Disclosure [Abstract] | |
2,017 | $ 15.7 |
2,018 | 20.6 |
2,019 | 22.5 |
2,020 | 11.5 |
2,021 | 910 |
After 2,021 | 1,235 |
Total | $ 2,215.3 |
Debt - Senior Secured Second Pr
Debt - Senior Secured Second Priority Notes (Details) - Senior Secured Second Priority Notes - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Jun. 30, 2016 | |
Debt Instrument [Line Items] | ||
Events of default, nonpayment of interest period | 30 days | |
Events of defaults, failure to comply with obligations or covenants, period | 60 days | |
Events of default, failure of subsidiary guarantors to comply with obligations, period | 45 days | |
Debt covenant, indebtedness (exceeds) | $ 150,000,000 | |
Debt covenant, failure to discharge judgment (in excess of) | 100,000,000 | |
Debt covenant, minimum fair market value of collateral in force | $ 150,000,000 | |
Upon Change in Control | ||
Debt Instrument [Line Items] | ||
Debt instrument redemption price percentage | 101.00% | |
Asset Sale | ||
Debt Instrument [Line Items] | ||
Debt instrument redemption price percentage | 100.00% | |
7.50% Senior Notes, Due 2022 | ||
Debt Instrument [Line Items] | ||
Aggregate principal amount | $ 610,000,000 | |
Stated rate | 7.50% | |
Debt instrument redemption price percentage | 103.00% | |
7.50% Senior Notes, Due 2022 | Prior to June 1, 2019 | ||
Debt Instrument [Line Items] | ||
Debt instrument redemption price percentage | 100.00% | |
Redemption price, percentage of principal amount redeemed | 10.00% | |
7.50% Senior Notes, Due 2022 | On or after June 1, 2019 and prior to June 1, 2020 | ||
Debt Instrument [Line Items] | ||
Debt instrument redemption price percentage | 103.75% | |
7.50% Senior Notes, Due 2022 | On or after June 1, 2020 and prior to June 1, 2021 | ||
Debt Instrument [Line Items] | ||
Debt instrument redemption price percentage | 101.875% | |
7.50% Senior Notes, Due 2022 | On or after June 1, 2021 and prior to June 1, 2022 | ||
Debt Instrument [Line Items] | ||
Debt instrument redemption price percentage | 100.00% | |
2022 Notes, Optional Redemption | ||
Debt Instrument [Line Items] | ||
Debt instrument redemption price percentage | 107.50% | |
2022 Notes, Optional Redemption | Prior to June 1, 2019 | ||
Debt Instrument [Line Items] | ||
Debt instrument redemption price percentage | 40.00% | |
7.75% Senior Notes, Due 2024 | ||
Debt Instrument [Line Items] | ||
Aggregate principal amount | $ 625,000,000 | |
Stated rate | 7.75% | |
Debt instrument redemption price percentage | 103.00% | |
7.75% Senior Notes, Due 2024 | Prior to June 1, 2019 | ||
Debt Instrument [Line Items] | ||
Debt instrument redemption price percentage | 100.00% | |
Redemption price, percentage of principal amount redeemed | 10.00% | |
7.75% Senior Notes, Due 2024 | On or after June 1, 2019 and prior to June 1, 2020 | ||
Debt Instrument [Line Items] | ||
Debt instrument redemption price percentage | 105.813% | |
7.75% Senior Notes, Due 2024 | On or after June 1, 2020 and prior to June 1, 2021 | ||
Debt Instrument [Line Items] | ||
Debt instrument redemption price percentage | 103.875% | |
7.75% Senior Notes, Due 2024 | On or after June 1, 2021 and prior to June 1, 2022 | ||
Debt Instrument [Line Items] | ||
Debt instrument redemption price percentage | 101.938% | |
7.75% Senior Notes, Due 2024 | On or after June 1, 2022 | ||
Debt Instrument [Line Items] | ||
Debt instrument redemption price percentage | 100.00% | |
2024 Notes, Optional Redemption | ||
Debt Instrument [Line Items] | ||
Debt instrument redemption price percentage | 107.75% | |
2024 Notes, Optional Redemption | Prior to June 1, 2019 | ||
Debt Instrument [Line Items] | ||
Redemption price, percentage of principal amount redeemed | 40.00% |
Debt - ABL Credit Facility and
Debt - ABL Credit Facility and Covenants (Details) - Line of Credit - ABL Credit Facility - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Jun. 30, 2016 | |
Debt Instrument [Line Items] | ||
Fixed charge coverage ratio (not less than) | 1 | |
Senior Secured Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 1,750,000,000 | |
Cash proceeds reinvestment percentage (less than) | 100.00% | |
Cash proceeds reinvestment period | 365 days | |
Covenant terms, available loan commitments (less than) | $ 250,000,000 | |
Covenant terms, collateral, percentage of capital stock | 65.00% | |
Maximum payment of dividends (not to exceed) | $ 200,000,000 | |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | 350,000,000 | |
Letter of Credit | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 250,000,000 |
Debt - Borrowing Capacity and A
Debt - Borrowing Capacity and Availability and Letters of Credit (Details) - Line of Credit - ABL Credit Facility | Dec. 31, 2016USD ($) |
Line of Credit Facility [Line Items] | |
Letter of credit drawn upon | $ 0 |
Senior Secured Revolving Credit Facility | |
Line of Credit Facility [Line Items] | |
Remaining Capacity | 817,100,000 |
Availability Under Borrowing Base Limitation | 817,100,000 |
Letter of Credit | |
Line of Credit Facility [Line Items] | |
Remaining Capacity | 227,100,000 |
Financial Standby Letter of Credit | |
Line of Credit Facility [Line Items] | |
Letter of credit issued and outstanding | $ 22,900,000 |
Debt - Debt Issuance Costs (Det
Debt - Debt Issuance Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | |||
Amortization of debt issuance costs | $ 5.6 | $ 4.5 | $ 6.2 |
Senior Secured Revolving Credit Facility | Line of Credit | ABL Credit Facility and Notes | |||
Debt Instrument [Line Items] | |||
Debt issuance costs | 41.5 | ||
Amortization of debt issuance costs | 3.4 | ||
Senior Secured Revolving Credit Facility | Line of Credit | Predecessor ABL Facility | |||
Debt Instrument [Line Items] | |||
Amortization of debt issuance costs | 2.2 | $ 4.5 | $ 6.2 |
Senior Secured Revolving Credit Facility | Long-term Debt | Line of Credit | ABL Credit Facility and Notes | |||
Debt Instrument [Line Items] | |||
Debt issuance costs | 22.5 | ||
Senior Secured Revolving Credit Facility | Other long-term assets | Line of Credit | ABL Credit Facility and Notes | |||
Debt Instrument [Line Items] | |||
Debt issuance costs in assets | $ 19 |
Employee Retirement Benefits -
Employee Retirement Benefits - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Provision for defined contribution plans | $ 7,500,000 | $ 7,400,000 | $ 3,900,000 | |
Effect of 1% increase in service and interest cost (less than) | 100,000 | |||
Effect of 1% increase in postretirement benefit obligation (less than) | 100,000 | |||
Qualified Pension Plan | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Company contributions | 100,000 | $ 1,400,000 | ||
Net actuarial loss | $ (1,200,000) | |||
Expected return on assets | 7.20% | 7.40% | 7.60% | |
U.S. Qualified Pension Plan | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Actual Benefit Plan Obligation Allocations | 99.00% | |||
Company contributions | $ 0 | $ 0 | $ 0 | |
Asset allocation percentage | 100.00% | |||
Equity Securities | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Asset allocation percentage | 65.00% | |||
Fixed Income Securities | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Asset allocation percentage | 35.00% | |||
Scenario, Forecast | U.S. Qualified Pension Plan | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Transfer of assets to defined benefit plan | $ 10,400,000 |
Employee Retirement Benefits 77
Employee Retirement Benefits - Changes in Projected Benefit Obligation, Changes in Plan Assets and Funded Status of Plan (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Pension | |||
Change in Projected Benefit Obligations | |||
Benefit obligation at beginning of year | $ 143 | $ 144.9 | |
Service cost | 0.1 | 0.1 | $ 5.5 |
Interest cost | 5.8 | 5.6 | 6.3 |
Employee contributions | 0 | 0 | |
Plan curtailments | 0 | (0.2) | |
Plan settlements | (0.1) | (1.4) | |
Benefits paid | (3.7) | (6.1) | |
Net transfer | 3.6 | 4.4 | |
Actuarial loss (gain) | 0.7 | (4.3) | |
Benefit obligation at end of year | 149.4 | 143 | 144.9 |
Change in Fair Value of Plan Assets | |||
Fair value of plan assets at beginning of year | 124.3 | 130.1 | |
Actual return on plan assets | 9.4 | (4) | |
Company contributions | 0.1 | 1.4 | |
Employee contributions | 0 | 0 | |
Benefits paid | (3.7) | (6.1) | |
Plan settlements | (0.1) | (1.4) | |
Assets expected to be received from the Hertz Plan | 3.2 | 4.3 | |
Fair value of plan assets at end of year | 133.2 | 124.3 | 130.1 |
Funded Status | (16.2) | (18.7) | |
Accumulated benefit obligation | 149.4 | 142.1 | |
Postretirement | |||
Change in Projected Benefit Obligations | |||
Benefit obligation at beginning of year | 1 | 0.9 | |
Service cost | 0 | 0 | |
Interest cost | 0 | 0 | |
Employee contributions | 0.1 | 0.1 | |
Plan curtailments | 0 | 0 | |
Plan settlements | 0 | 0 | |
Benefits paid | (0.1) | (0.1) | |
Net transfer | 0 | 0.1 | |
Actuarial loss (gain) | 0 | 0 | |
Benefit obligation at end of year | 1 | 1 | 0.9 |
Change in Fair Value of Plan Assets | |||
Fair value of plan assets at beginning of year | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Company contributions | 0 | 0.1 | |
Employee contributions | 0.1 | 0 | |
Benefits paid | (0.1) | (0.1) | |
Plan settlements | 0 | 0 | |
Assets expected to be received from the Hertz Plan | 0 | 0 | |
Fair value of plan assets at end of year | 0 | 0 | $ 0 |
Funded Status | $ (1) | $ (1) |
Employee Retirement Benefits 78
Employee Retirement Benefits - Amounts Recognized in Balance Sheet and Other Comprehensive Income and Assumptions Used (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Pension | ||
Amounts Recognized in Balance Sheet | ||
Accrued liabilities | $ (0.2) | $ (0.5) |
Other long-term liabilities | (16) | (18.2) |
Net amount recognized | (16.2) | (18.7) |
Amounts Recognized in Accumulated Other Comprehensive Loss | ||
Net actuarial gain (loss) | (24.2) | (25.7) |
Prior service credits | 0.2 | 0.2 |
Net amount recognized | $ (24) | $ (25.5) |
Weighted‑Average Assumptions Used to Determine Projected Benefit Obligations | ||
Discount rate | 4.10% | 4.30% |
Average rate of increase in compensation | 0.00% | 4.30% |
Postretirement | ||
Amounts Recognized in Balance Sheet | ||
Accrued liabilities | $ (0.1) | $ (0.1) |
Other long-term liabilities | (0.9) | (0.9) |
Net amount recognized | (1) | (1) |
Amounts Recognized in Accumulated Other Comprehensive Loss | ||
Net actuarial gain (loss) | 0.1 | 0.1 |
Prior service credits | 0 | 0 |
Net amount recognized | $ 0.1 | $ 0.1 |
Weighted‑Average Assumptions Used to Determine Projected Benefit Obligations | ||
Discount rate | 4.00% | 4.20% |
Average rate of increase in compensation | 0.00% | 0.00% |
Initial healthcare cost trend rate | 6.70% | 6.90% |
Ultimate healthcare cost trend rate | 4.50% | 4.50% |
Employee Retirement Benefits 79
Employee Retirement Benefits - Accumulated Benefit Plan Obligation in Excess of Fair Value of Plan Assets (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Pension | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Projected benefit obligation | $ 149.4 | $ 143 |
Accumulated benefit obligation | 149.4 | 142.1 |
Fair value of plan assets | 133.2 | 124.3 |
Postretirement | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Projected benefit obligation | 1 | 1 |
Accumulated benefit obligation | 0 | 0 |
Fair value of plan assets | $ 0 | $ 0 |
Employee Retirement Benefits 80
Employee Retirement Benefits - Net Periodic Costs (Benefits) (Details) - Pension - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 0.1 | $ 0.1 | $ 5.5 |
Interest cost | 5.8 | 5.6 | 6.3 |
Expected return on plan assets | (8) | (8.7) | (8.4) |
Net amortization of actuarial net loss | 1.4 | 0.3 | 0.1 |
Curtailment gain | 0 | 0 | (2.4) |
Settlement loss | 0 | 0.2 | 0 |
Net periodic pension cost (benefit) | $ (0.7) | $ (2.5) | $ 1.1 |
Weighted‑Average Assumptions Used to Determine Net Periodic Pension Cost (Benefit) | |||
Discount rate | 4.30% | 3.90% | 4.80% |
Expected return on assets | 7.20% | 7.40% | 7.60% |
Average rate of increase in compensation | 4.30% | 4.00% | 4.60% |
Employee Retirement Benefits 81
Employee Retirement Benefits - Fair Value of Plan Assets (Details) - Pension Plan - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Total fair value of pension plan assets | $ 133.2 | $ 124.3 | $ 133.2 | $ 124.3 | $ 130.1 |
Assets expected to be received from the Hertz Plan | 3.2 | 4.3 | |||
Level 1 | Cash | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Total fair value of pension plan assets | 1.5 | 0 | 1.5 | 0 | |
Level 2 | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Total fair value of pension plan assets | 133.2 | 124.3 | 133.2 | 124.3 | |
Assets expected to be received from the Hertz Plan | 10.4 | 0 | |||
Level 2 | Total Plan Assets, Excluding Assets Expected to be Transferred in | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Total fair value of pension plan assets | 122.8 | 124.3 | 122.8 | 124.3 | |
Level 2 | Short Term Investments | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Total fair value of pension plan assets | 0.2 | 1.5 | 0.2 | 1.5 | |
Level 2 | U.S. Large Cap | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Total fair value of pension plan assets | 34.7 | 34.2 | 34.7 | 34.2 | |
Level 2 | U.S. Mid Cap | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Total fair value of pension plan assets | 11.3 | 7.8 | 11.3 | 7.8 | |
Level 2 | U.S. Small Cap | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Total fair value of pension plan assets | 9.5 | 9.7 | 9.5 | 9.7 | |
Level 2 | International Large Cap | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Total fair value of pension plan assets | 20.8 | 20.7 | 20.8 | 20.7 | |
Level 2 | International Emerging Markets | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Total fair value of pension plan assets | 6.9 | 6.3 | 6.9 | 6.3 | |
Level 2 | Asset-Backed Securities | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Total fair value of pension plan assets | 1.2 | 1.1 | 1.2 | 1.1 | |
Level 2 | U.S. Treasuries | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Total fair value of pension plan assets | 6.8 | 13.2 | 6.8 | 13.2 | |
Level 2 | Corporate Bonds | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Total fair value of pension plan assets | 21.4 | 23.8 | 21.4 | 23.8 | |
Level 2 | Government Bonds | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Total fair value of pension plan assets | 3.5 | 1.9 | 3.5 | 1.9 | |
Level 2 | Municipal Bonds | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Total fair value of pension plan assets | 3.2 | 2.2 | 3.2 | 2.2 | |
Level 2 | Mortgage-Backed Securities | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Total fair value of pension plan assets | 1.8 | 0 | 1.8 | 0 | |
Level 2 | Real Estate (REITs) | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Total fair value of pension plan assets | $ 0 | $ 1.9 | $ 0 | $ 1.9 |
Employee Retirement Benefits 82
Employee Retirement Benefits - Estimated Future Benefit Payments (Details) $ in Millions | Dec. 31, 2016USD ($) |
Pension Plan | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2,017 | $ 5.7 |
2,018 | 6.3 |
2,019 | 7.2 |
2,020 | 8.2 |
2,021 | 8.5 |
2022-2026 | 57.2 |
Total expected future benefit payments | 93.1 |
Postretirement | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2,017 | 0.1 |
2,018 | 0.1 |
2,019 | 0.1 |
2,020 | 0.1 |
2,021 | 0.1 |
2022-2026 | 0.4 |
Total expected future benefit payments | $ 0.9 |
Employee Retirement Benefits 83
Employee Retirement Benefits - Contributions to Multiemployer Plans (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016USD ($)plan | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Multiemployer Plans [Line Items] | |||
Number of other multiemployer plans | plan | 6 | ||
Multiemployer Plans, Pension | |||
Multiemployer Plans [Line Items] | |||
Contributions | $ 1.5 | $ 1.4 | $ 1.1 |
Multiemployer Plans, Pension | Midwest Operating Engineers | |||
Multiemployer Plans [Line Items] | |||
Contributions | 0.7 | 0.7 | 0.5 |
Multiemployer Plans, Pension | Other Plans (a) | |||
Multiemployer Plans [Line Items] | |||
Contributions | $ 0.8 | $ 0.7 | $ 0.6 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized (in shares) | 2,200 | ||
Number of shares available for grant (in shares) | 750 | ||
Allocated stock-based compensation expense | $ 5.5 | $ 2.7 | $ 1.4 |
Unrecognized compensation cost | $ 15.1 | ||
Compensation cost not yet recognized, period for recognition | 2 years 2 months 12 days | ||
Options, weighted average grant date fair value (in USD per share) | $ 14.28 | $ 18.06 | |
Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expiration period | 10 years | ||
Award vesting period | 4 years | ||
Performance Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | 3 years | |
Weighted average grant date fair value (in USD per share) | $ 29.77 | $ 59.50 | $ 68.70 |
Fair value of awards vested | $ 0 | $ 0.6 | $ 1.7 |
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average grant date fair value (in USD per share) | $ 32.36 | $ 56.13 | $ 78.22 |
Fair value of awards vested | $ 0.3 | $ 0.6 | $ 1.6 |
THC | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated stock-based compensation expense | $ 2 | $ 1.8 | $ 0.5 |
Minimum | Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expiration period | 5 years | ||
Maximum | Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expiration period | 10 years |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock-Based Compensation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Compensation expense | $ 5.5 | $ 2.7 | $ 1.4 |
Income tax benefit | (2.1) | (1.1) | (0.5) |
Total | $ 3.4 | $ 1.6 | $ 0.9 |
Stock-Based Compensation - Weig
Stock-Based Compensation - Weighted Average Assumptions Used in Black Scholes Option Pricing Model (Details) - Stock Option | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility | 50.00% | 39.00% |
Expected dividend yield | 0.00% | 0.00% |
Expected term (years) | 4 years 9 months | 5 years |
Risk-free interest rate | 1.09% | 1.22% |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Option Activity (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 30, 2016 | |
Options | ||
Outstanding at beginning of period (in shares) | 134,200 | |
Granted (in shares) | 429,539 | |
Exercised (in shares) | (16,702) | |
Forfeited or expired (in shares) | (17,362) | |
Outstanding at end of period (in shares) | 529,675 | |
Vested and unvested expected to vest at end of period (in shares) | 418,974 | |
Exercisable at end of period (in shares) | 49,543 | |
Weighted Average Exercise Price | ||
Outstanding at the beginning of the period (in USD per share) | $ 52.11 | |
Granted (in USD per share) | 33.28 | |
Exercised (in USD per share) | 21.40 | |
Forfeited or expired (in USD per share) | 49.18 | |
Outstanding at the end of the period (in USD per share) | 37.90 | |
Vested and unvested expected to Vest at end of period (in USD per share) | 36.54 | |
Exercisable at end of period (in USD per share) | $ 53.54 | |
Weighted-Average Remaining Contractual Term, Vested and Unvested Expected to Vest at end of period | 6 years 2 months | |
Weighted-Average Remaining Contractual Term, Exercisable at end of period | 2 years 4 months | |
Aggregate Intrinsic Value, Vested and Unvested Expected to Vest at end of period | $ 2.5 | |
Aggregate Intrinsic Value, Exercisable at end of period | $ 0.1 | |
Market price (in USD per share) | $ 40.16 |
Stock-Based Compensation - St88
Stock-Based Compensation - Stock Options by Exercise Price Range (Details) | 12 Months Ended |
Dec. 31, 2016$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Number Outstanding (in shares) | shares | 529,675 |
Options Outstanding, Weighted‑ Average Exercise Price (in USD per share) | $ 37.90 |
Options Exercisable, Number Outstanding (in shares) | shares | 49,543 |
Options Exercisable, Weighted‑ Average Exercise Price (in USD per share) | $ 53.54 |
$20.00-30.00 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Number Outstanding (in shares) | shares | 9,260 |
Options Outstanding, Weighted‑ Average Exercise Price (in USD per share) | $ 27.63 |
Options Outstanding, Weighted‑ Average Remaining Contractual Term (Years) | 2 years 5 months |
Options Exercisable, Number Outstanding (in shares) | shares | 9,260 |
Options Exercisable, Weighted‑ Average Exercise Price (in USD per share) | $ 27.63 |
Options Exercisable, Weighted‑ Average Remaining Contractual Term (Years) | 2 years 5 months |
30.01-40.00 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Number Outstanding (in shares) | shares | 420,759 |
Options Outstanding, Weighted‑ Average Exercise Price (in USD per share) | $ 33.19 |
Options Outstanding, Weighted‑ Average Remaining Contractual Term (Years) | 6 years 7 months |
Options Exercisable, Number Outstanding (in shares) | shares | 0 |
Options Exercisable, Weighted‑ Average Exercise Price (in USD per share) | $ 0 |
Options Exercisable, Weighted‑ Average Remaining Contractual Term (Years) | 0 years |
40.01-50.00 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Number Outstanding (in shares) | shares | 9,350 |
Options Outstanding, Weighted‑ Average Exercise Price (in USD per share) | $ 42.82 |
Options Outstanding, Weighted‑ Average Remaining Contractual Term (Years) | 5 years 5 months |
Options Exercisable, Number Outstanding (in shares) | shares | 5,133 |
Options Exercisable, Weighted‑ Average Exercise Price (in USD per share) | $ 43.59 |
Options Exercisable, Weighted‑ Average Remaining Contractual Term (Years) | 4 years 2 months |
50.01-60.00 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Number Outstanding (in shares) | shares | 54,036 |
Options Outstanding, Weighted‑ Average Exercise Price (in USD per share) | $ 55.64 |
Options Outstanding, Weighted‑ Average Remaining Contractual Term (Years) | 3 years 6 months |
Options Exercisable, Number Outstanding (in shares) | shares | 13,506 |
Options Exercisable, Weighted‑ Average Exercise Price (in USD per share) | $ 55.64 |
Options Exercisable, Weighted‑ Average Remaining Contractual Term (Years) | 3 years 6 months |
60.01-70.00 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Number Outstanding (in shares) | shares | 16,774 |
Options Outstanding, Weighted‑ Average Exercise Price (in USD per share) | $ 64.37 |
Options Outstanding, Weighted‑ Average Remaining Contractual Term (Years) | 5 months |
Options Exercisable, Number Outstanding (in shares) | shares | 16,774 |
Options Exercisable, Weighted‑ Average Exercise Price (in USD per share) | $ 64.37 |
Options Exercisable, Weighted‑ Average Remaining Contractual Term (Years) | 5 months |
70.01-80.00 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Number Outstanding (in shares) | shares | 19,496 |
Options Outstanding, Weighted‑ Average Exercise Price (in USD per share) | $ 70.14 |
Options Outstanding, Weighted‑ Average Remaining Contractual Term (Years) | 3 years 1 month |
Options Exercisable, Number Outstanding (in shares) | shares | 4,870 |
Options Exercisable, Weighted‑ Average Exercise Price (in USD per share) | $ 70.14 |
Options Exercisable, Weighted‑ Average Remaining Contractual Term (Years) | 3 years 1 month |
Stock Option | $20.00-30.00 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, lower range limit (in USD per share) | $ 20 |
Range of Exercise Prices, upper range limit (in USD per share) | 30 |
Stock Option | 30.01-40.00 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, lower range limit (in USD per share) | 30.01 |
Range of Exercise Prices, upper range limit (in USD per share) | 40 |
Stock Option | 40.01-50.00 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, lower range limit (in USD per share) | 40.01 |
Range of Exercise Prices, upper range limit (in USD per share) | 50 |
Stock Option | 50.01-60.00 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, lower range limit (in USD per share) | 50.01 |
Range of Exercise Prices, upper range limit (in USD per share) | 60 |
Stock Option | 60.01-70.00 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, lower range limit (in USD per share) | 60.01 |
Range of Exercise Prices, upper range limit (in USD per share) | 70 |
Stock Option | 70.01-80.00 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, lower range limit (in USD per share) | 70.01 |
Range of Exercise Prices, upper range limit (in USD per share) | $ 80 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information Pertaining to Option Activity (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Aggregate intrinsic value of stock options exercised | $ 0.1 | $ 0 | $ 0.5 |
Cash received from the exercise of stock options | 0.4 | 0 | 0.8 |
Tax benefit realized on exercise of stock options | 0 | 0 | 0.2 |
Non-HERC Employee | Nonemployee Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Cash received from the exercise of stock options | $ 9.6 | $ 5.1 | $ 17.2 |
Stock-Based Compensation - Su90
Stock-Based Compensation - Summary of PSU Activity (Details) - Performance Stock Units - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Units | |||
Nonvested at beginning of period (in shares) | 37,259 | ||
Grants in period (in shares) | 119,164 | ||
Vested (in shares) | 0 | ||
Forfeited or expired (in shares) | (11,459) | ||
Nonvested at end of period (in shares) | 144,964 | 37,259 | |
Weighted Average Grant Date Fair Value | |||
Nonvested at beginning of period (in USD per share) | $ 62.33 | ||
Granted (in USD per share) | 29.77 | $ 59.50 | $ 68.70 |
Vested (in USD per share) | 0 | ||
Forfeited or expired (in USD per share) | 56.51 | ||
Nonvested at end of period (in USD per share) | $ 36.02 | $ 62.33 |
Stock-Based Compensation - Su91
Stock-Based Compensation - Summary of RSU Activity (Details) - Restricted Stock Units (RSUs) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Units | |||
Nonvested at beginning of period (in shares) | 21,206 | ||
Grants in period (in shares) | 289,575 | ||
Vested (in shares) | (8,820) | ||
Forfeited or expired (in shares) | (4,063) | ||
Nonvested at end of period (in shares) | 297,898 | 21,206 | |
Weighted Average Grant Date Fair Value | |||
Nonvested at beginning of period (in USD per share) | $ 56.30 | ||
Granted (in USD per share) | 32.36 | $ 56.13 | $ 78.22 |
Vested (in USD per share) | 55.51 | ||
Forfeited or expired (in USD per share) | 38.99 | ||
Nonvested at end of period (in USD per share) | $ 32.63 | $ 56.30 |
Income Taxes - Income before In
Income Taxes - Income before Income Tax, Domestic and Foreign (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 2.5 | $ 102.4 | $ 105.3 |
Foreign | (7.4) | 54.5 | 39.2 |
Income (loss) before income taxes | $ (4.9) | $ 156.9 | $ 144.5 |
Income Taxes - Summary of Provi
Income Taxes - Summary of Provision for Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current: | |||
Federal | $ 0 | $ 15.8 | $ 2.4 |
Foreign | 2.4 | 3.3 | 16 |
State and local | 0.1 | 4.2 | 3 |
Total current | 2.5 | 23.3 | 21.4 |
Deferred: | |||
Federal | 3.5 | 20.4 | 31.7 |
Foreign | (2.3) | 0.1 | 1.1 |
State and local | 11.1 | 1.8 | 0.6 |
Total deferred | 12.3 | 22.3 | 33.4 |
Total income tax expense | $ 14.8 | $ 45.6 | $ 54.8 |
Income Taxes - Schedule of U.S.
Income Taxes - Schedule of U.S. and Foreign Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets: | ||
Employee benefit plans | $ 7.1 | $ 7.6 |
Tax credit carryforwards | 1.5 | 0.1 |
Accrued and prepaid expenses | 38.6 | 32.4 |
Net operating loss carryforwards | 90.7 | 6.4 |
Total deferred tax assets | 137.9 | 46.5 |
Less: valuation allowance | (4.5) | (3.6) |
Total net deferred tax assets | 133.4 | 42.9 |
Deferred tax liabilities: | ||
Deferred state gain | (5.5) | 0 |
Depreciation on tangible assets | (721.1) | (673.9) |
Intangible assets | (98.9) | (96.1) |
Total deferred tax liabilities | (825.5) | (770) |
Net deferred tax liability | $ (692.1) | $ (727.1) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Statutory and Effective Tax Rates (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Contingency [Line Items] | |||
Income Tax at Statutory Rate | $ (1.7) | $ 54.9 | $ 50.6 |
Foreign tax differential | 0.7 | (0.3) | (8.8) |
State and local income taxes, net of federal income tax benefit | 9.5 | 5 | (0.1) |
Federal and foreign permanent differences | 3.2 | (0.3) | 0.9 |
Change in valuation allowance | 1.3 | 3.8 | (0.3) |
Benefit from sale of non-U.S. operations | 0 | (20.4) | 0 |
All other items, net | 0 | 0.9 | 2.8 |
Total income tax expense | 14.8 | 45.6 | 54.8 |
Foreign | |||
Income Tax Contingency [Line Items] | |||
Foreign local taxes | 0 | 0.8 | 1.2 |
Change in enacted rate | 0.1 | 1.7 | 3.2 |
State | |||
Income Tax Contingency [Line Items] | |||
Change in enacted rate | $ 1.7 | $ (0.5) | $ 5.3 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2016 | |
Income Tax Contingency [Line Items] | ||||
Deferred tax assets unutilized for net operating losses | $ 78,500,000 | |||
Uncertain tax positions | 200,000 | |||
Deferred tax assets for federal alternative minimum tax | 1,100,000 | |||
Deferred tax assets for foreign NOL carryforwards | 3,300,000 | |||
Carryforwards not subject to expiration | 800,000 | |||
Deferred tax assets associated operating loss carryforwards not subject to expiration | 100,000 | |||
Valuation allowance against deferred tax assets | 4,500,000 | $ 3,600,000 | ||
Deferred tax assets, net | $ 133,400,000 | $ 42,900,000 | ||
Federal statutory rate | 35.00% | 35.00% | 35.00% | |
Change in income tax expense (benefit) | $ 16,500,000 | |||
State and local income taxes, net of federal income tax benefit | 9,500,000 | $ 5,000,000 | $ (100,000) | |
Federal and foreign permanent differences | 3,200,000 | (300,000) | 900,000 | |
Tax liability | 10,000,000 | 41,600,000 | ||
Penalties and interest | 0 | $ 0 | $ 0 | |
State | ||||
Income Tax Contingency [Line Items] | ||||
Deferred tax assets, net operating loss carry forwards | 8,900,000 | |||
Federal | ||||
Income Tax Contingency [Line Items] | ||||
Operating loss carryforwards | 231,400,000 | |||
Excess tax deductions associated with stock option plans | 7,100,000 | |||
Future tax benefits upon utilization of carry forwards | 2,500,000 | |||
Foreign | ||||
Income Tax Contingency [Line Items] | ||||
Operating loss carryforwards | 13,600,000 | |||
NOL subject to expiration | 12,800,000 | |||
Deferred tax assets associated with operating loss carryforwards subject to expiration | 3,200,000 | |||
United States | Federal | ||||
Income Tax Contingency [Line Items] | ||||
Operating loss carryforwards | $ 224,300,000 | |||
New Hertz | ||||
Income Tax Contingency [Line Items] | ||||
Tax liability | $ 200,000 |
Leases - Schedule of Rent Expen
Leases - Schedule of Rent Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating Leased Assets [Line Items] | |||
Rent expense | $ 33 | $ 33.2 | $ 34.2 |
Sublease income | (0.5) | (0.5) | (0.7) |
Total | 32.5 | 32.7 | 33.5 |
Real estate | |||
Operating Leased Assets [Line Items] | |||
Rent expense | 31.8 | 31.5 | 32.1 |
Office and computer equipment | |||
Operating Leased Assets [Line Items] | |||
Rent expense | $ 1.2 | $ 1.7 | $ 2.1 |
Leases - Minimum Obligations Un
Leases - Minimum Obligations Under Operating Lease Agreements (Details) $ in Millions | Dec. 31, 2016USD ($) |
Leases [Abstract] | |
2,017 | $ 29.3 |
2,018 | 26.7 |
2,019 | 20.8 |
2,020 | 14.3 |
2,021 | 9.3 |
After 2,021 | 36 |
Total | $ 136.4 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Leases [Abstract] | |
Minimum future sublease rental inflows | $ 2 |
Operating lease terms | 15 years |
Leases - Future Minimum Capital
Leases - Future Minimum Capital Lease Payments (Details) $ in Millions | Dec. 31, 2016USD ($) |
Capital Leased Assets [Line Items] | |
2,017 | $ 18.3 |
2,018 | 22.5 |
2,019 | 23.6 |
2,020 | 11.9 |
Total minimum lease payments | 76.3 |
Less amount representing interest (at a weighted-average interest rate of 3.99%) | (6) |
Total capital lease obligations | $ 70.3 |
Capital Leases | Capital Lease Obligations | |
Capital Leased Assets [Line Items] | |
Weighted average effective interest rate | 3.99% |
Accumulated Other Comprehens101
Accumulated Other Comprehensive Income (Loss) - Changes in AOCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | $ 2,302 | $ 1,693.7 | $ 1,877.4 |
Total other comprehensive income (loss) | 16.7 | (103.1) | 0.6 |
Ending balance | 317.7 | 2,302 | 1,693.7 |
Pension and Other Post-Employment Benefits | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (15.5) | (10.8) | |
Other comprehensive income before reclassification | 0 | (5) | |
Amounts reclassified from accumulated other comprehensive loss | 0.9 | 0.3 | |
Total other comprehensive income (loss) | 0.9 | (4.7) | |
Ending balance | (14.6) | (15.5) | (10.8) |
Foreign Currency Items | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (119.9) | (21.5) | |
Other comprehensive income before reclassification | 15.8 | (56.8) | |
Amounts reclassified from accumulated other comprehensive loss | 0 | (41.6) | |
Total other comprehensive income (loss) | 15.8 | (98.4) | |
Ending balance | (104.1) | (119.9) | (21.5) |
Accumulated Other Comprehensive Income (Loss) | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (135.4) | (32.3) | (32.9) |
Other comprehensive income before reclassification | 15.8 | (61.8) | |
Amounts reclassified from accumulated other comprehensive loss | 0.9 | (41.3) | |
Total other comprehensive income (loss) | 16.7 | (103.1) | 0.6 |
Ending balance | $ (118.7) | $ (135.4) | $ (32.3) |
Accumulated Other Comprehens102
Accumulated Other Comprehensive Income (Loss) - Reclassification out of AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Selling, general and administrative | $ 275 | $ 265.5 | $ 251.4 | ||||||||
Other (income) expense | (2.4) | (56.1) | (4.2) | ||||||||
Total | $ 7.4 | $ (6.7) | $ 2.7 | $ 1.5 | $ (95.1) | $ (35.5) | $ (19.6) | $ (6.7) | 4.9 | (156.9) | (144.5) |
Tax expense (benefit) | 14.8 | 45.6 | 54.8 | ||||||||
Total reclassifications for the period | $ 13.2 | $ (3) | $ 8 | $ 1.5 | $ (78.2) | $ (20.8) | $ (10.6) | $ (1.7) | 19.7 | (111.3) | (89.7) |
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income (Loss) | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Total | 1.4 | (41.1) | (2.3) | ||||||||
Tax expense (benefit) | (0.5) | (0.2) | 0.9 | ||||||||
Total reclassifications for the period | 0.9 | (41.3) | (1.4) | ||||||||
Reclassification out of Accumulated Other Comprehensive Income | Amortization of actuarial losses | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Selling, general and administrative | 1.4 | 0.3 | 0.1 | ||||||||
Reclassification out of Accumulated Other Comprehensive Income | Settlement loss | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Selling, general and administrative | 0 | 0.2 | 0 | ||||||||
Reclassification out of Accumulated Other Comprehensive Income | Curtailment gain | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Selling, general and administrative | 0 | 0 | (2.4) | ||||||||
Reclassification out of Accumulated Other Comprehensive Income | Reclassification of foreign currency items to other (income) expense | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Other (income) expense | $ 0 | $ (41.6) | $ 0 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Loss Contingencies [Line Items] | ||
Accrued environmental liabilities | $ 0.2 | $ 0.1 |
THC | ||
Loss Contingencies [Line Items] | ||
Related party indemnification percentage | 15.00% |
Restructuring - Restructuring C
Restructuring - Restructuring Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | $ 4 | $ 4.3 | $ 5.7 |
Termination benefits | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | 1.8 | 2.8 | 2 |
Facility closure and lease obligation costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | 2.2 | 1.5 | 3 |
Relocation costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | $ 0 | $ 0 | $ 0.7 |
Restructuring - Restructuring R
Restructuring - Restructuring Reserve (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Restructuring Reserve [Roll Forward] | |||
Balance at beginning of period | $ 2.5 | $ 3.4 | |
Charges incurred | 4 | 4.3 | $ 5.7 |
Cash payments | (5.6) | (5.2) | |
Balance at end of period | 0.9 | 2.5 | 3.4 |
Termination benefits | |||
Restructuring Reserve [Roll Forward] | |||
Balance at beginning of period | 1.2 | 0.8 | |
Charges incurred | 1.8 | 2.8 | 2 |
Cash payments | (2.8) | (2.4) | |
Balance at end of period | 0.2 | 1.2 | 0.8 |
Other | |||
Restructuring Reserve [Roll Forward] | |||
Balance at beginning of period | 1.3 | 2.6 | |
Charges incurred | 2.2 | 1.5 | |
Cash payments | (2.8) | (2.8) | |
Balance at end of period | $ 0.7 | $ 1.3 | $ 2.6 |
Financial Instruments - Estimat
Financial Instruments - Estimated Fair Value of Financial Instruments (Details) - Fair Value, Measurements, Recurring - Not Designated as Hedging Instrument - Foreign Currency Forward Contracts - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Prepaid Expenses and Other Current Assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net recognized assets in Balance Sheet | $ 0.1 | $ 0.1 |
Accrued Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net recognized liabilities in Balance Sheet | $ 0 | $ 0 |
Financial Instruments - Gains (
Financial Instruments - Gains (Losses) on Derivative Instruments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Foreign Currency Forward Contracts | Selling, General and Administrative Expenses | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Loss on derivative instruments | $ 5 | $ (5.9) | $ (0.5) |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value by Level of Cash Equivalents (Details) - Money market funds - Fair Value, Measurements, Recurring - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | $ 0 | $ 13.5 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 0 | 13.5 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 0 | 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | $ 0 | $ 0 |
Fair Value Measurements - Fa109
Fair Value Measurements - Fair Value of Debt Obligations (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value | Level 2 | ||
Fair Value of Financial Instruments [Abstract] | ||
Debt | $ 2,275.5 | $ 63.5 |
Carrying Value | ||
Fair Value of Financial Instruments [Abstract] | ||
Debt | $ 2,215.3 | $ 63.5 |
Equity and Earnings (Loss) P110
Equity and Earnings (Loss) Per Share - Computation of Basic and Diluted Earnings (Loss) per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Numerator: | |||||||||||
Net income (loss), basic | $ (19.7) | $ 111.3 | $ 89.7 | ||||||||
Interest on convertible senior notes, net of tax | 0 | 0 | 1.1 | ||||||||
Net income (loss), diluted | $ (19.7) | $ 111.3 | $ 90.8 | ||||||||
Denominator: | |||||||||||
Basic weighted average common shares (in shares) | 28,300 | 30,200 | 30,300 | ||||||||
Stock options, RSUs and PSUs (in shares) | 0 | 0 | 0 | ||||||||
Issuance of common stock upon conversion of convertible senior notes (in shares) | 0 | 0 | 1,300 | ||||||||
Weighted average shares used to calculate diluted earnings per share (in shares) | 28,300 | 30,200 | 31,600 | ||||||||
Earnings (loss) per share: | |||||||||||
Basic (in USD per share) | $ (0.47) | $ 0.11 | $ (0.28) | $ (0.05) | $ 2.68 | $ 0.69 | $ 0.35 | $ 0.06 | $ (0.70) | $ 3.69 | $ 3 |
Diluted (in USD per share) | $ (0.47) | $ 0.11 | $ (0.28) | $ (0.05) | $ 2.68 | $ 0.69 | $ 0.35 | $ 0.06 | $ (0.70) | $ 3.69 | $ 2.87 |
Antidilutive stock options, RSUs and PSUs | |||||||||||
Earnings (loss) per share: | |||||||||||
Antidilutive stock options, RSUs and PSUs (in shares) | 300 | 0 | 0 |
Equity and Earnings (Loss) P111
Equity and Earnings (Loss) Per Share - Narrative (Details) shares in Millions | Jun. 30, 2016USD ($) | Dec. 31, 2015USD ($)shares | Mar. 31, 2014USD ($) |
Earnings Per Share [Abstract] | |||
Stock split conversion ratio | 0.0667 | ||
Shares authorized to be repurchased (in shares) | $ 1,000,000,000 | ||
Shares repurchased (in shares) | shares | 2.5 | ||
Aggregate purchase price of shares repurchased | $ 604,500,000 | ||
Dollar value of shares yet to be purchased | $ 395,900,000 |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Costs Incurred and Allocated (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Related Party Transaction [Line Items] | |||
Direct operating | $ 651.4 | $ 711.2 | $ 716.1 |
Selling, general and administrative | 275 | 265.5 | 251.4 |
Total expenses | 1,559.7 | 1,521.3 | 1,625.9 |
THC | |||
Related Party Transaction [Line Items] | |||
Direct operating | 0.6 | (0.9) | 2.2 |
Selling, general and administrative | 18 | 36 | 44.5 |
Total expenses | $ 18.6 | $ 35.1 | $ 46.7 |
Related Party Transactions - Ag
Related Party Transactions - Agreements with Carl Icahn (Details) | 12 Months Ended |
Dec. 31, 2016USD ($)shares | |
Senior Notes | 7.50% Senior Notes, Due 2022 | Affiliate of Related Party | |
Related Party Transaction [Line Items] | |
Purchase of principal | $ | $ 50,000,000 |
Senior Notes | 7.75% Senior Notes, Due 2024 | Affiliate of Related Party | |
Related Party Transaction [Line Items] | |
Purchase of principal | $ | $ 75,000,000 |
Nomination and Standstill Agreement | Icahn Group | |
Related Party Transaction [Line Items] | |
Ownership percentage limit (no more than) | 20.00% |
Net long position shares held, tranche one (in shares) | 1,900,000 |
Net long position shares held, tranche two (in shares) | 1,520,000 |
Net long position shares held, tranche three (in shares) | 1,266,667 |
Arrangements With New Hertz Arr
Arrangements With New Hertz Arrangements With New Hertz (Details) - New Hertz $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Related Party Transaction [Line Items] | |
Related party indemnification percentage | 15.00% |
Separation and Distribution Agreement | |
Related Party Transaction [Line Items] | |
Cash transfers to affiliates | $ 2,100 |
Related party indemnification percentage | 15.00% |
Transition Services Agreement | |
Related Party Transaction [Line Items] | |
Related party agreement term | 2 years |
Incurred expenses with related party | $ 10.9 |
Intellectual Property Agreement | |
Related Party Transaction [Line Items] | |
Related party agreement term | 4 years |
Segment Information - Narrative
Segment Information - Narrative (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2016USD ($)segment | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Segment Reporting [Abstract] | |||||||||||
Number of reportable segments | segment | 1 | ||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | $ 405.2 | $ 403.6 | $ 380.4 | $ 365.6 | $ 422.4 | $ 431.8 | $ 422.7 | $ 401.3 | $ 1,554.8 | $ 1,678.2 | $ 1,770.4 |
International | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | $ 193.6 | $ 332.4 | $ 460.6 |
Segment Information - Schedule
Segment Information - Schedule of Geographical Information for Long-Lived Assets (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Assets | $ 3,463.3 | $ 3,397 |
Revenue earning equipment, net | 2,390 | 2,382.5 |
Property and equipment, net | 272 | 246.6 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Assets | 3,203.3 | 2,584.8 |
Revenue earning equipment, net | 2,111 | 2,081.9 |
Property and equipment, net | 243.2 | 214.9 |
International | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Assets | 260 | 812.2 |
Revenue earning equipment, net | 279 | 300.6 |
Property and equipment, net | $ 28.8 | $ 31.7 |
Quarterly Financial Informat117
Quarterly Financial Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Revenues | $ 405.2 | $ 403.6 | $ 380.4 | $ 365.6 | $ 422.4 | $ 431.8 | $ 422.7 | $ 401.3 | $ 1,554.8 | $ 1,678.2 | $ 1,770.4 |
Income (loss) before income taxes | (7.4) | 6.7 | (2.7) | (1.5) | 95.1 | 35.5 | 19.6 | 6.7 | (4.9) | 156.9 | 144.5 |
Net income (loss) | $ (13.2) | $ 3 | $ (8) | $ (1.5) | $ 78.2 | $ 20.8 | $ 10.6 | $ 1.7 | $ (19.7) | $ 111.3 | $ 89.7 |
Earnings (loss) per share: | |||||||||||
Basic (in USD per share) | $ (0.47) | $ 0.11 | $ (0.28) | $ (0.05) | $ 2.68 | $ 0.69 | $ 0.35 | $ 0.06 | $ (0.70) | $ 3.69 | $ 3 |
Diluted (in USD per share) | $ (0.47) | $ 0.11 | $ (0.28) | $ (0.05) | $ 2.68 | $ 0.69 | $ 0.35 | $ 0.06 | $ (0.70) | $ 3.69 | $ 2.87 |
Disposal Group, Disposed of by Sale, Not Discontinued Operations | France and Spain Operations | |||||||||||
Earnings (loss) per share: | |||||||||||
Revenue associated with operations sold | $ 6.9 | $ 19.3 | $ 16.1 | $ 24.4 | |||||||
Adjustments | Historical Mapping of Entities Related to Spin-Off | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Income (loss) before income taxes | $ (2.7) | $ (1.9) |
Subsequent Events (Details)
Subsequent Events (Details) - Senior Notes - USD ($) $ in Millions | Feb. 28, 2017 | Dec. 31, 2016 |
Subsequent Event | ||
Subsequent Event [Line Items] | ||
Redemption price percentage | 103.00% | |
2022 Notes | ||
Subsequent Event [Line Items] | ||
Redemption price percentage | 103.00% | |
2022 Notes | Subsequent Event | ||
Subsequent Event [Line Items] | ||
Principal amount redeemed | $ 61 | |
2024 Notes | ||
Subsequent Event [Line Items] | ||
Redemption price percentage | 103.00% | |
2024 Notes | Subsequent Event | ||
Subsequent Event [Line Items] | ||
Principal amount redeemed | $ 62.5 |
Schedule II - Valuation of Qual
Schedule II - Valuation of Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Receivables Allowance | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Beginning Balance | $ 23.8 | $ 28.4 | $ 20 |
Provisions | 44.4 | 42.8 | 37.4 |
Translation Adjustments | 0.1 | 0 | 0 |
Deductions | (43.4) | (47.4) | (29) |
Ending Balance | 24.9 | 23.8 | 28.4 |
Tax Valuation Allowances | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Beginning Balance | 3.6 | 31.5 | 34.7 |
Provisions | 1.2 | 0.6 | 3.7 |
Translation Adjustments | (0.3) | 0.9 | (2.9) |
Deductions | 0 | (29.4) | (4) |
Ending Balance | $ 4.5 | $ 3.6 | $ 31.5 |