Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended |
Jun. 30, 2013 | |
Document And Entity Information [Abstract] | |
Entity Registrant Name | HERTZ CORP |
Entity Central Index Key | 47129 |
Entity Filer Category | Non-accelerated Filer |
Document Type | S-4 |
Pre-Effective Amendment Number | 2 |
Document Period End Date | 30-Jun-13 |
Amendment Flag | FALSE |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 |
ASSETS | |||||||
Cash and cash equivalents | $483,000,000 | $533,235,000 | $586,000,000 | $586,000,000 | $931,208,000 | $2,374,006,000 | $985,467,000 |
Restricted cash and cash equivalents | 393,200,000 | 571,634,000 | 308,039,000 | ||||
Receivables, less allowance for doubtful accounts of $25,113 and $20,282 | 1,656,000,000 | 1,886,596,000 | 1,616,382,000 | ||||
Due from Hertz affiliates | 800,000 | 12,809,000 | 0 | ||||
Inventories, at lower of cost or market | 128,300,000 | 105,728,000 | 83,978,000 | ||||
Prepaid expenses and other assets | 763,200,000 | 461,502,000 | 416,134,000 | ||||
Revenue earning equipment, at cost: | |||||||
Cars | 15,489,800,000 | 12,591,132,000 | 9,678,765,000 | ||||
Less accumulated depreciation | -2,169,100,000 | -1,881,030,000 | -1,360,012,000 | ||||
Other equipment | 3,425,200,000 | 3,240,095,000 | 2,830,176,000 | ||||
Less accumulated depreciation | -1,039,900,000 | -1,041,861,000 | -1,043,520,000 | ||||
Total revenue earning equipment | 15,706,000,000 | 12,908,336,000 | 10,105,409,000 | ||||
Property and equipment, at cost: | |||||||
Land, buildings and leasehold improvements | 1,333,700,000 | 1,288,833,000 | 1,146,112,000 | ||||
Service equipment and other | 1,257,800,000 | 1,261,049,000 | 1,050,915,000 | ||||
Total property and equipment, at cost | 2,591,500,000 | 2,549,882,000 | 2,197,027,000 | ||||
Less accumulated depreciation | -1,125,900,000 | -1,113,496,000 | -945,173,000 | ||||
Total property and equipment | 1,465,600,000 | 1,436,386,000 | 1,251,854,000 | ||||
Other intangible assets, net | 3,968,500,000 | 4,032,111,000 | 2,562,234,000 | ||||
Goodwill | 1,366,300,000 | 1,341,872,000 | 392,094,000 | 328,600,000 | |||
Total assets | 25,930,900,000 | 23,290,209,000 | 17,667,332,000 | ||||
LIABILITIES AND EQUITY | |||||||
Accounts payable | 1,484,500,000 | 999,061,000 | 897,489,000 | ||||
Accrued liabilities | 1,182,300,000 | 1,178,460,000 | 1,126,338,000 | ||||
Accrued taxes | 183,600,000 | 167,314,000 | 162,984,000 | ||||
Debt | 17,394,200,000 | 15,014,474,000 | 10,907,849,000 | ||||
Public liability and property damage | 327,500,000 | 332,232,000 | 281,534,000 | ||||
Deferred taxes on income | 2,786,800,000 | 4,558,500,000 | 3,684,700,000 | ||||
Total liabilities | 23,358,900,000 | 20,372,681,000 | 15,038,478,000 | ||||
Commitments and contingencies | |||||||
The Hertz Corporation and Subsidiaries stockholder's equity | |||||||
Common Stock, $0.01 par value, 3,000 shares authorized, 100 shares issued and outstanding | 0 | 0 | 0 | ||||
Additional paid-in capital | 3,534,200,000 | 3,509,998,000 | 3,473,625,000 | ||||
Accumulated deficit | -888,900,000 | -565,597,000 | -816,376,000 | ||||
Accumulated other comprehensive loss | -73,300,000 | -26,892,000 | -38,000,000 | -28,414,000 | |||
Total The Hertz Corporation and Subsidiaries stockholder's equity | 2,572,000,000 | 2,917,509,000 | 2,628,835,000 | ||||
Noncontrolling interest | 0 | 19,000 | 19,000 | ||||
Total equity | 2,572,000,000 | 2,917,528,000 | 2,628,854,000 | 2,502,429,000 | 2,461,948,000 | ||
Total liabilities and equity | $25,930,900,000 | $23,290,209,000 | $17,667,332,000 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, except Share data, unless otherwise specified | |||
Receivables, allowance for doubtful accounts (in dollars) | $26,200 | $25,113 | $20,282 |
Common Stock, par value (in dollars per share) | $0.01 | $0.01 | $0.01 |
Common Stock, shares authorized | 3,000 | 3,000 | 3,000 |
Common Stock, shares issued | 100 | 100 | 100 |
Common Stock, shares outstanding | 100 | 100 | 100 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||||
In Thousands, unless otherwise specified | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | ||
Revenues: | ||||||||||||||||
Car rental | $2,329,500 | $1,889,600 | $4,414,300 | $3,547,900 | $7,456,111 | $6,929,584 | $6,355,205 | |||||||||
Equipment rental | 384,300 | 335,000 | 735,400 | 637,100 | 1,383,196 | 1,208,811 | 1,069,820 | |||||||||
Other | 800 | 500 | 1,500 | 1,100 | 181,500 | 159,985 | 137,509 | |||||||||
Total revenues | 2,714,600 | 2,318,600 | 2,516,200 | 2,225,100 | 1,960,900 | 2,013,800 | 2,432,300 | 2,072,300 | 1,780,000 | 5,151,200 | 4,186,100 | 9,020,807 | 8,298,380 | 7,562,534 | ||
Expenses: | ||||||||||||||||
Direct operating | 1,405,900 | 1,188,900 | 2,757,100 | 2,303,100 | 4,795,788 | 4,566,378 | 4,283,394 | |||||||||
Depreciation of revenue earning equipment and lease charges | 641,100 | 519,800 | 1,228,100 | 1,034,900 | 2,148,158 | 1,905,739 | 1,868,147 | |||||||||
Selling, general and administrative | 274,800 | 206,600 | 526,300 | 414,300 | 945,581 | 745,117 | 664,442 | |||||||||
Interest expense | 170,200 | 139,300 | 333,500 | 288,800 | 597,788 | 650,254 | 726,539 | |||||||||
Interest income | -2,000 | -500 | -3,800 | -1,600 | -4,902 | -5,551 | -12,315 | |||||||||
Other (income) expense, net | -1,100 | -600 | -1,700 | -1,000 | 35,542 | 62,548 | 5 | |||||||||
Total expenses | 2,488,900 | 2,053,500 | 4,839,500 | 4,038,500 | 8,517,955 | 7,924,485 | 7,530,212 | |||||||||
Income before income taxes | 225,700 | -26,900 | 382,100 | 171,700 | -24,000 | 105,400 | 308,200 | 107,000 | -146,700 | 311,700 | 147,600 | 502,852 | 373,895 | 32,322 | ||
Provision for taxes on income | -95,800 | -70,700 | -155,300 | -94,900 | -227,073 | -143,846 | -33,322 | |||||||||
Net income attributable to The Hertz Corporation and Subsidiaries' common stockholder | 129,900 | -28,300 | 251,300 | 101,000 | -48,200 | 58,800 | 212,600 | 62,100 | -123,000 | 156,400 | 52,700 | 275,779 | 210,489 | -18,383 | ||
Net income (loss) | 129,900 | 100,900 | 52,700 | 156,400 | 275,779 | 230,049 | -1,000 | |||||||||
Car Rental | ||||||||||||||||
Revenues: | ||||||||||||||||
Total revenues | 2,329,500 | 1,889,600 | 4,414,300 | 3,547,900 | 7,633,000 | 7,083,500 | 6,486,200 | |||||||||
Expenses: | ||||||||||||||||
Depreciation of revenue earning equipment and lease charges | 1,876,100 | 1,651,400 | 1,594,600 | |||||||||||||
Interest expense | 316,300 | 333,100 | 401,300 | |||||||||||||
Income before income taxes | 363,000 | 277,400 | 571,400 | 369,000 | 1,020,100 | 850,200 | [1] | 641,900 | [1] | |||||||
Equipment Rental | ||||||||||||||||
Revenues: | ||||||||||||||||
Total revenues | 384,300 | 335,000 | 735,400 | 637,100 | 1,385,400 | 1,209,500 | 1,070,100 | |||||||||
Expenses: | ||||||||||||||||
Depreciation of revenue earning equipment and lease charges | 272,100 | 254,300 | 273,500 | |||||||||||||
Interest expense | 52,000 | 45,300 | 39,400 | |||||||||||||
Income before income taxes | 74,100 | 42,500 | 119,900 | 68,400 | 227,000 | 161,600 | [1] | 78,000 | [1] | |||||||
Other | ||||||||||||||||
Revenues: | ||||||||||||||||
Total revenues | $800 | $500 | $1,500 | $1,100 | ||||||||||||
[1] | The following table reconciles adjusted pre-tax income to income (loss) before income taxes for the years ended December 31, 2012, 2011 and 2010 (in millions of dollars): |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | |
Net income (loss) | $129,900,000 | $100,900,000 | $156,400,000 | |
Other comprehensive income (loss), net of tax: | ||||
Translation adjustment changes | -26,700,000 | -46,100,000 | -54,000,000 | -16,500,000 |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax | 2,100,000 | 0 | 2,100,000 | 3,100,000 |
Other, (net of tax of 2013: $0 and 2012: $0) | 100,000 | 200,000 | 100,000 | 100,000 |
Defined benefit pension plans | ||||
Net gains (losses) arising during the period, (net of tax of 2013: $1.5 and 2012: $1.2) | 2,300,000 | 3,900,000 | 5,400,000 | 3,700,000 |
Defined benefit pension plans | 2,300,000 | 3,900,000 | 5,400,000 | 3,700,000 |
Other comprehensive income (loss) | -22,200,000 | -42,000,000 | -46,400,000 | -9,600,000 |
Comprehensive income attributable to The Hertz Corporation and Subsidiaries' common stockholder | $107,700,000 | $58,900,000 | $110,000,000 | $43,100,000 |
CONSOLIDATED_STATEMENTS_OF_COM1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Unrealized holding gains (losses) on securities, tax | $0 | $1,958 | $3,063 | ($2,450) | $0 | $125 | $0 |
Unrealized gain (loss) on Euro-denominated debt, (net of tax of 2012: $0; 2011: $(8,005) and 2010: $12,656) | 0 | 0 | 0 | -4,139 | 0 | -12,573 | 12,358 |
Net gains (losses) arising during the period, tax | $1,682 | $0 | $3,333 | $2,037 | $7,063 | $15,555 | $794 |
CONSOLIDATED_STATEMENT_OF_CHAN
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (USD $) | Total | Common Stock | Additional Paid-In Capital | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) |
December 31, 2012 at Dec. 31, 2012 | $2,917,500,000 | $0 | $3,510,000,000 | ($565,600,000) | ($26,900,000) |
Net loss attributable to The Hertz Corporation and Subsidiaries' common stockholder | 156,400,000 | 156,400,000 | |||
Other comprehensive loss | 46,400,000 | 46,400,000 | |||
Dividends paid | -479,700,000 | -479,700,000 | |||
Stock-based employee compensation charges, net of tax of $0 | 19,700,000 | 19,700,000 | |||
Proceeds from employee stock purchase plan | 2,800,000 | 2,800,000 | |||
Hertz Holdings common shares issued to Directors | 1,700,000 | 1,700,000 | |||
June 30, 2013 at Jun. 30, 2013 | $2,572,000,000 | $0 | $3,534,200,000 | ($888,900,000) | ($73,300,000) |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 6 Months Ended | |
Jun. 30, 2013 | Jun. 30, 2012 | |
Cash flows from operating activities: | ||
Net income (loss) | $156,400,000 | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation of revenue earning equipment | 1,194,800,000 | 990,300,000 |
Depreciation of property and equipment | 101,800,000 | 85,500,000 |
Amortization of other intangible assets | 60,700,000 | 39,000,000 |
Amortization and write-off of deferred financing costs | 25,000,000 | 29,500,000 |
Amortization and write-off of debt discount | -3,100,000 | 2,800,000 |
Stock-based compensation charges | 19,700,000 | 15,000,000 |
Gain (loss) on derivatives | -3,600,000 | -900,000 |
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | -1,500,000 | -400,000 |
Loss on revaluation of foreign denominated debt | 0 | 2,500,000 |
Provision for losses on doubtful accounts | 21,400,000 | 13,600,000 |
Deferred tax expense | 104,100,000 | 40,900,000 |
Gain on sale of property and equipment | -1,500,000 | -700,000 |
Changes in assets and liabilities, net of effects of acquisition: | ||
Receivables | -227,400,000 | -226,600,000 |
Inventories, prepaid expenses and other assets | -63,900,000 | -21,000,000 |
Accounts payable | 85,300,000 | 142,100,000 |
Accrued liabilities | -6,100,000 | 7,900,000 |
Accrued taxes | 15,700,000 | 16,800,000 |
Public liability and property damage | -14,800,000 | -6,800,000 |
Net cash provided by operating activities | 1,466,000,000 | 1,183,000,000 |
Cash flows from investing activities: | ||
Net change in restricted cash and cash equivalents | 175,400,000 | 130,100,000 |
Revenue earning equipment expenditures | -6,825,500,000 | -5,711,000,000 |
Proceeds from disposal of revenue earning equipment | 3,742,800,000 | 3,608,300,000 |
Property and equipment expenditures | -168,100,000 | -137,200,000 |
Proceeds from disposal of property and equipment | 42,500,000 | 56,400,000 |
Acquisitions, net of cash acquired | -229,200,000 | -161,800,000 |
Other investing activities | -2,000,000 | -600,000 |
Net cash used in investing activities | -3,264,100,000 | -2,215,800,000 |
Cash flows from financing activities: | ||
Proceeds from issuance of long-term debt | 1,204,400,000 | 270,500,000 |
Payment of long-term debt | -320,700,000 | -643,100,000 |
Short-term borrowings: | ||
Proceeds | 332,000,000 | 246,700,000 |
Payments | -435,900,000 | -656,200,000 |
Proceeds under the revolving lines of credit | 3,680,100,000 | 3,535,500,000 |
Payments under the revolving lines of credit | -2,217,900,000 | -1,991,700,000 |
Purchase of noncontrolling interest | 0 | -38,000,000 |
Proceeds from employee stock purchase plan | 2,400,000 | 2,000,000 |
Loan with Hertz Global Holdings, Inc. | 12,000,000 | -13,900,000 |
Payment of financing costs | -20,600,000 | -6,900,000 |
Dividends paid | -479,700,000 | -12,500,000 |
Net cash provided by (used in) financing activities | 1,756,100,000 | 692,400,000 |
Effect of foreign exchange rate changes on cash and cash equivalents | -8,200,000 | -4,800,000 |
Net decrease in cash and cash equivalents during the period | -50,200,000 | -345,200,000 |
Cash and cash equivalents at beginning of period | 533,235,000 | 931,208,000 |
Cash and cash equivalents at end of period | 483,000,000 | 586,000,000 |
Cash paid during the period for: | ||
Interest (net of amounts capitalized) | 303,900,000 | 269,400,000 |
Income taxes | 43,000,000 | 37,700,000 |
Supplemental disclosure for non-cash flow information [Abstract] | ||
Purchases of revenue earning equipment included in accounts payable and accrued liabilities | 561,600,000 | 598,600,000 |
Sales of revenue earning equipment included in receivables | 118,800,000 | 178,400,000 |
Purchases of property and equipment included in accounts payable | 58,600,000 | 42,100,000 |
Sales of property and equipment included in receivables | 18,500,000 | 9,200,000 |
Other Significant Noncash Transaction, Value of Consideration Given | $18,000,000 | $0 |
Background
Background | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2013 | Dec. 31, 2012 | ||
Background | |||
Background | Background | Background | |
The Hertz Corporation together with its subsidiaries, including Dollar Thrifty Automotive Group, Inc., or "Dollar Thrifty," are referred to herein as ‘‘we,’’ ‘‘our’’ and ‘‘us.’’ The Hertz Corporation is referred to herein as ‘‘Hertz,’’ 100% of Hertz outstanding capital stock is owned by Hertz Investors, Inc., and 100% of Hertz Investors, Inc.'s capital stock is owned by Hertz Holdings. | The Hertz Corporation together with its subsidiaries are referred to herein as “we,” “our” and “us.” The Hertz Corporation is referred to herein as “Hertz,” 100% of Hertz outstanding capital stock is owned by Hertz Investors, Inc. (previously CCMG Corporation), and 100% of Hertz Investors, Inc.'s capital stock is owned by Hertz Holdings (previously known as CCMG Holdings, Inc.). | ||
We operate our car rental business through the Hertz, Dollar and Thrifty brands from corporate, licensee and franchisee locations in North America, Europe, Latin America, Asia, Australia, Africa, the Middle East and New Zealand and our equipment rental business our equipment rental business segment, we rent equipment through in the United States, Canada, France, Spain, China and Saudi Arabia, as well as through our international licensees. We and our predecessors have been in the car rental business since 1918 and in the equipment rental business since 1965. We also own Donlen Corporation, or "Donlen," based in Northbrook, Illinois, which is a leader in providing fleet leasing and management services. | We are a successor to corporations that have been engaged in the car and truck rental and leasing business since 1918 and the equipment rental business since 1965. Hertz was incorporated in Delaware in 1967. Ford Motor Company acquired an ownership interest in Hertz in 1987. Prior to this, Hertz was a subsidiary of United Continental Holdings, Inc. (formerly Allegis Corporation), which acquired our outstanding capital stock from RCA Corporation in 1985. | ||
On November 19, 2012, Hertz completed the acquisition of Dollar Thrifty, a car rental business. On December 12, 2012, Hertz completed the sale of Simply Wheelz LLC, a wholly owned subsidiary of Hertz that operated our Advantage Rent A Car business. See Note 5—Business Combinations and Divestitures. | On December 21, 2005, investment funds associated with or designated by: | ||
In May 2013, we announced plans to relocate our worldwide headquarters to Estero, Florida from Park Ridge, New Jersey over a two-year period. | |||
• | Clayton, Dubilier & Rice, Inc., which was succeeded by Clayton, Dubilier & Rice, LLC, or “CD&R,” | ||
• | The Carlyle Group, or “Carlyle,” and | ||
• | Merrill Lynch & Co., Inc., or "Merrill Lynch," | ||
or collectively the “Sponsors,” acquired all of our common stock from Ford Holdings LLC. We refer to the acquisition of all of our common stock by the Sponsors as the “Acquisition.” | |||
In January 2009, Bank of America Corporation, or “Bank of America,” acquired Merrill Lynch. Accordingly, Bank of America is now an indirect beneficial owner of Hertz Holdings' common stock held by Merrill Lynch and certain other investment funds and affiliates of Merrill Lynch. | |||
On September 1, 2011, Hertz completed the acquisition of Donlen Corporation, or "Donlen," a leading provider of fleet leasing and management services. See Note 4—Business Combinations and Divestitures. | |||
In December 2011, Hertz purchased the noncontrolling interest of Navigation Solutions, L.L.C., thereby increasing its ownership interest from 65% to 100%. | |||
On November 19, 2012, Hertz completed the acquisition of Dollar Thrifty Automotive Group, Inc., or "Dollar Thrifty," a car and truck rental and leasing business. See Note 4—Business Combinations and Divestitures. | |||
On December 12, 2012, Hertz completed the sale of Simply Wheelz LLC, a wholly owned subsidiary of Hertz that operated our Advantage Rent A Car business. See Note 4—Business Combinations and Divestitures. | |||
In December 2012, the Sponsors sold 50,000,000 shares of their Hertz Holdings common stock to J.P. Morgan as the sole underwriter in the registered public offering of those shares. | |||
As a result of Hertz Holdings' initial public offering in November 2006 and subsequent offerings in June 2007, May 2009, June 2009, March 2011 and December 2012, the Sponsors reduced their holdings to approximately 26% of the outstanding shares of common stock of Hertz Holdings. |
Basis_of_Presentation_and_Rece
Basis of Presentation and Recently Issued Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2013 | |
Basis of Presentation and Recently Issued Accounting Pronouncements | |
Basis of Presentation and Recently Issued Accounting Pronouncements | Basis of Presentation and Recently Issued Accounting Pronouncements |
Basis of Presentation | |
The significant accounting policies summarized in Note 2 to our audited consolidated financial statements contained in our Annual Report on Form 10-K for the fiscal year ended December 31, 2012, filed with the United States Securities and Exchange Commission, or "SEC," on March 4, 2013, or the "Form 10-K," have been followed in preparing the accompanying condensed consolidated financial statements. | |
The December 31, 2012 condensed consolidated balance sheet data was derived from our audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America, or "GAAP." | |
The preparation of financial statements in conformity with 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. | |
In our opinion, all adjustments necessary for a fair presentation of the results of operations for the interim periods have been made. Results for interim periods are not necessarily indicative of results for a full year. | |
Certain prior period amounts have been reclassified to conform with current period presentation. | |
The Company has revised its consolidated statement of cash flows to correctly present borrowings and repayments related to its revolving lines of credits on a gross basis. These amounts had previously been presented on a net basis within the financing section. This revision had no impact on the Company's total operating, investing or financing cash flows. | |
Recently Issued Accounting Pronouncements | |
In July 2012, the Financial Accounting Standards Board, or "FASB," issued Accounting Standards Update, or "ASU," No. 2012-02, "Intangibles—Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment," or "ASU 2012-02" which states that an entity has the option first to assess qualitative factors to determine whether the existence of events and circumstances indicates that it is more likely than not that an indefinite-lived intangible asset is impaired. If, after assessing the totality of events and circumstances, an entity concludes that it is not more likely than not that the indefinite-lived intangible asset is impaired, then the entity is not required to take further action. However, if an entity concludes otherwise, then it is required to determine the fair value of the indefinite-lived intangible asset and perform the quantitative impairment test by comparing the fair value with the carrying amount. This provision is effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. This accounting guidance is not expected to have a material impact on our consolidated financial statements or financial statement disclosures. | |
In March 2013, the FASB issued ASU No. 2013-05, “Foreign Currency Matters (Topic 830): Parent's Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity,” or “ASU 2013-05”, which permits an entity to release cumulative translation adjustments into net income when a reporting entity (parent) ceases to have a controlling financial interest in a subsidiary or group of assets that is a business within a foreign entity. Accordingly, the cumulative translation adjustment should be released into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided, or, if a controlling financial interest is no longer held. The revised standard is effective for reporting periods beginning after December 15, 2013. The amendments should be applied prospectively to derecognition events occurring after the effective date. Prior periods should not be adjusted. Early adoption is permitted. This accounting guidance is not expected to have a material impact on our consolidated financial statements or financial statement disclosures. | |
In July 2013, the FASB issued ASU No. 2013-11, "Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists," an amendment to FASB Accounting Standards Codification, or "ASC" Topic 740, Income Taxes, or "FASB ASC Topic 740." This update clarifies that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward if such settlement is required or expected in the event the uncertain tax position is disallowed. In situations where a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction or the tax law of the jurisdiction does not require, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. This ASU is effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2013. Early adoption and retrospective application are permitted. This accounting guidance is not expected to have a material impact on our consolidated financial statements or financial statement disclosures. |
Cash_and_Cash_Equivalents_and_
Cash and Cash Equivalents and Restricted Cash and Cash Equivalents | 6 Months Ended |
Jun. 30, 2013 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents and Restricted Cash and Cash Equivalents | Cash and Cash Equivalents and Restricted Cash and Cash Equivalents |
We consider all highly liquid debt instruments purchased with an original maturity of three months or less to be cash equivalents. | |
Restricted cash and cash equivalents includes cash and cash equivalents that are not readily available for our normal disbursements. Restricted cash and cash equivalents are restricted for the purchase of revenue earning vehicles and other specified uses under our Fleet Debt facilities, for our Like-Kind Exchange Program, or "LKE Program," and to satisfy certain of our self-insurance regulatory reserve requirements. As of June 30, 2013 and December 31, 2012, the portion of total restricted cash and cash equivalents that was associated with our Fleet Debt facilities and LKE Program was $351.6 million and $494.0 million, respectively. The decrease in restricted cash and cash equivalents associated with our fleet of $142.4 million from December 31, 2012 to June 30, 2013 was primarily related to the timing of purchases and sales of revenue earning vehicles. |
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 6 Months Ended | 12 Months Ended | ||||||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | |||||||||||||||||||||||
Goodwill and Other Intangible Assets | ||||||||||||||||||||||||
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets | ||||||||||||||||||||||
The following summarizes the changes in our goodwill, by segment (in millions of dollars): | We account for our goodwill and indefinite-lived intangible assets under ASC 350. Under ASC 350, goodwill impairment is deemed to exist if the carrying value of goodwill exceeds its fair value. In addition, ASC 350 requires that goodwill be tested at least annually using a two-step process. The first step is to identify any potential impairment by comparing the carrying value of the reporting unit to its fair value. We estimate the fair value of our reporting units using a discounted cash flow methodology. The cash flows represent management’s most recent planning assumptions. These assumptions are based on a combination of industry outlooks, views on general economic conditions, our expected pricing plans and expected future savings generated by our ongoing restructuring activities. If a potential impairment is identified, the second step is to compare the implied fair value of goodwill with its carrying amount to measure the impairment loss. Those intangible assets considered to have indefinite useful lives, including our trade name, are evaluated for impairment on an annual basis, by comparing the fair value of the intangible assets to their carrying value. In addition, whenever events or changes in circumstances indicate that the carrying value of intangible assets might not be recoverable, we will perform an impairment review. We estimate the fair value of our indefinite lived intangible assets using the relief from royalty method. Intangible assets with finite useful lives are amortized over their respective estimated useful lives and reviewed for impairment in accordance with ASC 360-10, "Impairment and Disposal of Long-Lived Assets." | |||||||||||||||||||||||
At October 1, 2012, 2011 and 2010, we performed our annual goodwill impairment test and determined that the respective book values of our reporting units did not exceed their estimated fair values and therefore no impairment existed for the years ended December 31, 2012, 2011 and 2010. | ||||||||||||||||||||||||
The following summarizes the changes in our goodwill, by segment (in millions of dollars): | ||||||||||||||||||||||||
Car Rental | Equipment | Total | ||||||||||||||||||||||
Rental | ||||||||||||||||||||||||
Balance as of January 1, 2013 | Car Rental | Equipment | Total | |||||||||||||||||||||
Goodwill | $ | 1,287.50 | $ | 775.4 | $ | 2,062.90 | Rental | |||||||||||||||||
Balance as of January 1, 2012 | ||||||||||||||||||||||||
Accumulated impairment losses | (46.1 | ) | (674.9 | ) | (721.0 | ) | Goodwill | $ | 419.3 | $ | 693.8 | $ | 1,113.10 | |||||||||||
1,241.40 | 100.5 | 1,341.90 | ||||||||||||||||||||||
Accumulated impairment losses | (46.1 | ) | (674.9 | ) | (721.0 | ) | ||||||||||||||||||
373.2 | 18.9 | 392.1 | ||||||||||||||||||||||
Goodwill acquired during the period | 9.4 | — | 9.4 | |||||||||||||||||||||
Adjustments to previously recorded purchase price allocation(a) | 15 | 1.7 | 16.7 | Goodwill acquired during the year | 884.9 | 82 | 966.9 | |||||||||||||||||
Other changes during the period(b) | (1.6 | ) | (0.1 | ) | (1.7 | ) | Adjustments to previously recorded purchase price allocation(a) | (15.3 | ) | — | (15.3 | ) | ||||||||||||
22.8 | 1.6 | 24.4 | ||||||||||||||||||||||
Other changes during the year(b) | (1.4 | ) | (0.4 | ) | (1.8 | ) | ||||||||||||||||||
868.2 | 81.6 | 949.8 | ||||||||||||||||||||||
Balance as of June 30, 2013 | ||||||||||||||||||||||||
Goodwill | 1,310.30 | 777 | 2,087.30 | |||||||||||||||||||||
Balance as of December 31, 2012 | ||||||||||||||||||||||||
Accumulated impairment losses | (46.1 | ) | (674.9 | ) | (721.0 | ) | Goodwill | 1,287.50 | 775.4 | 2,062.90 | ||||||||||||||
$ | 1,264.20 | $ | 102.1 | $ | 1,366.30 | |||||||||||||||||||
Accumulated impairment losses | (46.1 | ) | (674.9 | ) | (721.0 | ) | ||||||||||||||||||
$ | 1,241.40 | $ | 100.5 | $ | 1,341.90 | |||||||||||||||||||
Car Rental | Equipment | Total | ||||||||||||||||||||||
Rental | ||||||||||||||||||||||||
Balance as of January 1, 2012 | Car Rental | Equipment | Total | |||||||||||||||||||||
Goodwill | $ | 419.3 | $ | 693.8 | $ | 1,113.10 | Rental | |||||||||||||||||
Balance as of January 1, 2011 | ||||||||||||||||||||||||
Accumulated impairment losses | (46.1 | ) | (674.9 | ) | (721.0 | ) | Goodwill | $ | 367.9 | $ | 681.7 | $ | 1,049.60 | |||||||||||
373.2 | 18.9 | 392.1 | ||||||||||||||||||||||
Accumulated impairment losses | (46.1 | ) | (674.9 | ) | (721.0 | ) | ||||||||||||||||||
321.8 | 6.8 | 328.6 | ||||||||||||||||||||||
Goodwill acquired during the year | 884.9 | 82 | 966.9 | |||||||||||||||||||||
Adjustments to previously recorded purchase price allocation(c) | (15.3 | ) | — | (15.3 | ) | Goodwill acquired during the year | 53.1 | 12.3 | 65.4 | |||||||||||||||
Other changes during the year(d) | (1.4 | ) | (0.4 | ) | (1.8 | ) | Adjustments to previously recorded purchase price allocation | (0.9 | ) | (0.1 | ) | (1.0 | ) | |||||||||||
868.2 | 81.6 | 949.8 | Other changes during the year(b) | (0.8 | ) | (0.1 | ) | (0.9 | ) | |||||||||||||||
51.4 | 12.1 | 63.5 | ||||||||||||||||||||||
Balance as of December 31, 2012 | ||||||||||||||||||||||||
Goodwill | 1,287.50 | 775.4 | 2,062.90 | Balance as of December 31, 2011 | ||||||||||||||||||||
Goodwill | 419.3 | 693.8 | 1,113.10 | |||||||||||||||||||||
Accumulated impairment losses | (46.1 | ) | (674.9 | ) | (721.0 | ) | ||||||||||||||||||
$ | 1,241.40 | $ | 100.5 | $ | 1,341.90 | Accumulated impairment losses | (46.1 | ) | (674.9 | ) | (721.0 | ) | ||||||||||||
$ | 373.2 | $ | 18.9 | $ | 392.1 | |||||||||||||||||||
_______________________________________________________________________________ | ||||||||||||||||||||||||
_______________________________________________________________________________ | ||||||||||||||||||||||||
(a) | Consists of adjustments related to purchase accounting and deferred tax during 2013. | |||||||||||||||||||||||
(a) | Consists of deferred tax adjustments recorded during 2012. | |||||||||||||||||||||||
(b) | Primarily consists of changes resulting from the translation of foreign currencies at different exchange rates from the beginning of the period to the end of the period. | |||||||||||||||||||||||
(b) | Primarily consists of changes resulting from disposals and the translation of foreign currencies at different exchange rates from the beginning of the period to the end of the period. | |||||||||||||||||||||||
(c) | Consists of deferred tax adjustments recorded during 2012. | Other intangible assets, net, consisted of the following major classes (in millions of dollars): | ||||||||||||||||||||||
(d) | Primarily consists of changes resulting from disposals and the translation of foreign currencies at different exchange rates from the beginning of the year to the end of the year. | |||||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||
Other intangible assets, net, consisted of the following major classes (in millions of dollars): | Gross | Accumulated | Net | |||||||||||||||||||||
Carrying | Amortization | Carrying | ||||||||||||||||||||||
Amount | Value | |||||||||||||||||||||||
30-Jun-13 | Amortizable intangible assets: | |||||||||||||||||||||||
Gross | Accumulated | Net | Customer-related | $ | 694.7 | $ | (434.0 | ) | $ | 260.7 | ||||||||||||||
Carrying | Amortization | Carrying | ||||||||||||||||||||||
Amount | Value | Other(1) | 459.6 | (33.8 | ) | 425.8 | ||||||||||||||||||
Amortizable intangible assets: | ||||||||||||||||||||||||
Customer-related | $ | 694.6 | $ | (468.5 | ) | $ | 226.1 | Total | 1,154.30 | (467.8 | ) | 686.5 | ||||||||||||
Other(1) | 454 | (59.8 | ) | 394.2 | Indefinite-lived intangible assets: | |||||||||||||||||||
Trade name | 3,330.00 | — | 3,330.00 | |||||||||||||||||||||
Total | 1,148.60 | (528.3 | ) | 620.3 | ||||||||||||||||||||
Other(3) | 15.6 | — | 15.6 | |||||||||||||||||||||
Indefinite-lived intangible assets: | ||||||||||||||||||||||||
Trade name | 3,330.00 | — | 3,330.00 | Total | 3,345.60 | — | 3,345.60 | |||||||||||||||||
Other(2) | 18.2 | — | 18.2 | Total other intangible assets, net | $ | 4,499.90 | $ | (467.8 | ) | $ | 4,032.10 | |||||||||||||
Total | 3,348.20 | — | 3,348.20 | |||||||||||||||||||||
Total other intangible assets, net | $ | 4,496.80 | $ | (528.3 | ) | $ | 3,968.50 | |||||||||||||||||
31-Dec-11 | ||||||||||||||||||||||||
Gross | Accumulated | Net | ||||||||||||||||||||||
Carrying | Amortization | Carrying | ||||||||||||||||||||||
Amount | Value | |||||||||||||||||||||||
31-Dec-12 | Amortizable intangible assets: | |||||||||||||||||||||||
Gross | Accumulated | Net | Customer-related | $ | 672.6 | $ | (365.5 | ) | $ | 307.1 | ||||||||||||||
Carrying | Amortization | Carrying | ||||||||||||||||||||||
Amount | Value | Other(2) | 74.7 | (27.8 | ) | 46.9 | ||||||||||||||||||
Amortizable intangible assets: | ||||||||||||||||||||||||
Customer-related | $ | 694.7 | $ | (434.0 | ) | $ | 260.7 | Total | 747.3 | (393.3 | ) | 354 | ||||||||||||
Other(1) | 459.6 | (33.8 | ) | 425.8 | Indefinite-lived intangible assets: | |||||||||||||||||||
Trade name | 2,190.00 | — | 2,190.00 | |||||||||||||||||||||
Total | 1,154.30 | (467.8 | ) | 686.5 | ||||||||||||||||||||
Other(3) | 18.2 | — | 18.2 | |||||||||||||||||||||
Indefinite-lived intangible assets: | ||||||||||||||||||||||||
Trade name | 3,330.00 | — | 3,330.00 | Total | 2,208.20 | — | 2,208.20 | |||||||||||||||||
Other(2) | 15.6 | — | 15.6 | Total other intangible assets, net | $ | 2,955.50 | $ | (393.3 | ) | $ | 2,562.20 | |||||||||||||
Total | 3,345.60 | — | 3,345.60 | _______________________________________________________________________________ | ||||||||||||||||||||
Total other intangible assets, net | $ | 4,499.90 | $ | (467.8 | ) | $ | 4,032.10 | -1 | Other amortizable intangible assets primarily include Dollar Thrifty concession agreements, Donlen trade name, reacquired franchise rights, non-compete agreements and technology-related intangibles. | |||||||||||||||
_______________________________________________________________________________ | -2 | Other amortizable intangible assets primarily consisted of our Advantage trade name and concession rights, Donlen trade name, reacquired franchise rights, non-compete agreements and technology-related intangibles. | ||||||||||||||||||||||
-1 | Other amortizable intangible assets primarily include Dollar Thrifty concession agreements, Donlen trade name, reacquired franchise rights, non-compete agreements and technology-related intangibles. | -3 | Other indefinite-lived intangible assets primarily consist of reacquired franchise rights. | |||||||||||||||||||||
-2 | Other indefinite-lived intangible assets primarily consist of reacquired franchise rights. | 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. Intangible assets determined to have indefinite useful lives are not amortized but are tested for impairment annually, or more frequently if events or changes in circumstances indicate the asset may be impaired. | ||||||||||||||||||||||
Amortization of other intangible assets for the three months ended June 30, 2013 and 2012 was approximately $30.2 million and $19.8 million, respectively. Amortization of other intangible assets for the six months ended June 30, 2013 and 2012 was approximately $60.7 million and $39.0 million, respectively. Based on our amortizable intangible assets as of June 30, 2013, we expect amortization expense to be approximately $60.0 million for the remainder of 2013, $116.4 million in 2014, $113.9 million in 2015, $64.9 million in 2016 and $51.8 million in 2017. | Generally, our trademarks and trade names are expected to generate cash flows indefinitely. Consequently, these assets were classified as indefinite-lived intangibles and accordingly are not amortized but reviewed for impairment annually, or sooner under certain circumstances. Prior to the goodwill testing discussed above, we tested our intangible assets with indefinite lives. The test for impairment requires us to compare the fair value of our indefinite-lived intangible assets to the carrying value of those assets. In situations where the carrying value exceeds the fair value of the intangible asset, an impairment loss equal to the difference is recognized. We estimate the fair value of our indefinite-lived intangible assets using an income approach; specifically, based on discounted cash flows. | |||||||||||||||||||||||
December 31, 2012, 2011 and 2010 | ||||||||||||||||||||||||
At October 1, 2012, 2011 and 2010, we performed our annual test of recoverability of indefinite-lived intangible assets. We determined that the respective book values of our indefinite-lived intangible assets did not exceed their estimated fair values and therefore no impairment existed. | ||||||||||||||||||||||||
Amortization of other intangible assets for the years ended December 31, 2012, 2011 and 2010 was approximately $84.1 million, $70.0 million and $64.7 million, respectively. Based on our amortizable intangible assets as of December 31, 2012, we expect amortization expense to be approximately $120.5 million in 2013, $116.1 million in 2014, $113.7 million in 2015, $64.8 million in 2016 and $51.8 million in 2017. |
Business_Combinations_and_Dive
Business Combinations and Divestitures (Notes) | 6 Months Ended | |||||||
Jun. 30, 2013 | ||||||||
Business Combinations and Divestitures | ||||||||
Business Combination and Divestitures | Business Combinations and Divestitures | |||||||
Dollar Thrifty Acquisition | ||||||||
On November 19, 2012, Hertz Holdings completed the Dollar Thrifty acquisition pursuant to the terms of the Merger Agreement with Dollar Thrifty and a wholly owned Hertz subsidiary, or "Merger Sub." In accordance with the terms of the Merger Agreement, Merger Sub completed a tender offer in which it purchased a majority of the shares of Dollar Thrifty common stock then outstanding at a price equal to $87.50 per share in cash. Merger Sub subsequently acquired the remaining shares of Dollar Thrifty common stock by means of a short-form merger in which such shares were converted into the right to receive the same $87.50 per share in cash paid in the tender offer. The total purchase price was approximately $2,592.0 million, comprised of $2,551.0 million of cash, including our use of approximately $404.0 million of cash and cash equivalents available from Dollar Thrifty, and the fair value of our previously held equity interest in Dollar Thrifty of $41.0 million. As a condition of the Merger Agreement, and pursuant to a divestiture agreement reached with the Federal Trade Commission, or "FTC," Hertz divested its Simply Wheelz subsidiary, which owned and operated the Advantage brand, and secured for the buyer of Advantage certain Dollar Thrifty on-airport car rental concessions. Dollar Thrifty is now a wholly-owned subsidiary of Hertz. | ||||||||
The purchase price of Dollar Thrifty was funded with (i) cash proceeds of $1,950.0 million received by Hertz from its issuance of $1,950.0 million in aggregate principal amount of Senior Notes and Term Loans, (ii) approximately $404.0 million of acquired cash and cash equivalents from Dollar Thrifty, and (iii) the balance funded by Hertz's existing cash. | ||||||||
The purchase price was allocated to the estimated fair values of the assets acquired and liabilities assumed on the closing date of November 19, 2012. For the preliminary purchase price allocation refer to Note 4 of the Notes to our audited annual consolidated financial statements included in our Form 10-K under the caption "Item 8—Financial Statements and Supplementary Data." | ||||||||
Adjustments to the preliminary purchase price allocation have been made to reflect revised estimates of the fair value of the assets acquired and liabilities assumed at November 19, 2012 and is based on the best information available to management at the time of the preparation of this report and is preliminary pending the completion of the final valuation analysis of the Dollar Thrifty assets and liabilities, including the valuation of income taxes. The revisions primarily related to valuation of certain contracts and accrued liabilities, and the resulting changes to goodwill. Providing for these adjustments in previous periods would not have a material impact on the reported operating results for the three month periods ended December 31, 2012 and March 31, 2013. | ||||||||
Unaudited pro forma financial information | ||||||||
The following table presents unaudited pro forma financial information as if the acquisition of Dollar Thrifty had occurred on January 1, 2012 for the period presented below (in millions of dollars). | ||||||||
Revenue | Earnings | |||||||
2012 supplemental pro forma for the second quarter of 2012 (combined entity) | $ | 2,555.10 | $ | 123.6 | ||||
2012 supplemental pro forma for the first half of 2012 (combined entity) | $ | 4,812.50 | $ | 90.6 | ||||
The unaudited pro forma consolidated results do not purport to project the future results of operations of the combined entity nor do they reflect the expected realization of any cost savings associated with the acquisition. The unaudited pro forma consolidated results reflect the historical financial information of Hertz Holdings and Dollar Thrifty, adjusted for increases in amortization expense related to intangible assets acquired, additional interest expense associated with the financing relating to the acquisition, elimination of the results of operations of the Advantage business and locations to be divested where Dollar Thrifty operated at least one of its brands prior to the consummation of the Dollar Thrifty acquisition, and including an estimated amount of leasing revenue to be earned by Hertz from leasing vehicles to the buyer of Advantage. | ||||||||
Other Acquisitions | ||||||||
On April 15, 2013, Hertz entered into definitive agreements with China Auto Rental Holdings, Inc., or ‘‘China Auto Rental,’’ and related parties pursuant to which Hertz made a strategic investment in China Auto Rental. China Auto Rental is the largest car rental company in China. Pursuant to the transaction, Hertz invested cash in, and agreed to contribute its China Rent-a-Car entities to, China Auto Rental. For this investment, Hertz received common stock and a convertible note in return and will receive an additional convertible note upon completion of the contribution. Upon the initial closing of the transaction, which occurred on May 1, 2013, Hertz owns 10% of China Auto Rental’s ordinary shares and has a seat on China Auto Rental’s Board. We have de-consolidated Hertz China Rent-a-Car entities and classified the convertible notes as available for sale securities. Upon conversion of the convertible notes, Hertz would have 18.64% on a fully diluted basis. This transaction will be accounted for under the equity method of accounting in accordance with GAAP. | ||||||||
During the six months ended June 30, 2013, we re-acquired five domestic car rental locations from our former licensees and added five international locations through an external acquisition. These acquisitions are not material to the consolidated amounts presented within our statement of operations for the three-month and six-month periods ended June 30, 2013. | ||||||||
Divestitures | ||||||||
Potential Divestiture of Selected Dollar Thrifty Airport Locations | ||||||||
In order to obtain regulatory approval and clearance for the Dollar Thrifty acquisition, Hertz agreed to dispose of Advantage, to secure for the buyer of Advantage certain on-airport car rental concessions and related assets at certain locations where Dollar Thrifty operated at least one of its brands. As of June 30, 2013, Hertz completed the transfer of most of these Dollar Thrifty locations, and had a remaining loss reserve including estimated support payments, of $15.7 million. | ||||||||
Advantage Divestiture | ||||||||
On December 12, 2012, Hertz completed the sale of Simply Wheelz LLC, or the “Advantage divestiture,” a wholly owned subsidiary of Hertz that operated our Advantage Rent A Car business, or “Advantage.” As part of the sale agreement, Hertz agreed to sublease vehicles to the buyer of Advantage for use in continuing the operations of Advantage, for a period no longer than two years from the closing date. As such, Hertz will have significant continuing involvement in the operations of the disposed Advantage business. Therefore, the operating results associated with the Advantage business will continue to be classified as part of our continuing operations in the consolidated statements of operations for all periods presented. |
Taxes_on_Income
Taxes on Income | 6 Months Ended | 12 Months Ended | ||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | |||||||||||||
Taxes on Income | ||||||||||||||
Taxes on Income | Taxes on Income | Taxes on Income | ||||||||||||
The effective tax rate for the three months ended June 30, 2013 and 2012 was 42.4% and 41.2%, respectively. The effective tax rate for the six months ended June 30, 2013 and 2012 was 49.8% and 64.3%, respectively. The effective tax rate for the full fiscal year 2013 is expected to be approximately 41%. The provision for taxes on income of $95.8 million for the three months ended June 30, 2013 increased from $70.7 million for the three months ended June 30, 2012, primarily due to higher income before income taxes, changes in geographic earnings mix and changes in losses in certain non-U.S. jurisdictions for which tax benefits are not realized, and non-deductible acquisition costs related to the China transaction. The provision for taxes on income of $155.3 million for the six months ended June 30, 2013 increased from $94.9 million for the six months ended June 30, 2012, primarily due to higher income before income taxes, changes in geographic earnings mix and changes in losses in certain non-U.S. jurisdictions for which tax benefits are not realized, and non-deductible acquisition costs related to the China transaction. | The components of income (loss) before income taxes for the periods were as follows (in millions of dollars): | |||||||||||||
Years ended December 31, | ||||||||||||||
2012 | 2011 | 2010 | ||||||||||||
Domestic | $ | 407.7 | $ | 235.9 | $ | (81.2 | ) | |||||||
Foreign | 95.2 | 138 | 113.5 | |||||||||||
Total | $ | 502.9 | $ | 373.9 | $ | 32.3 | ||||||||
The total provision (benefit) for taxes on income consists of the following (in millions of dollars): | ||||||||||||||
Years ended December 31, | ||||||||||||||
2012 | 2011 | 2010 | ||||||||||||
Current: | ||||||||||||||
Federal | $ | 20.1 | $ | 10.3 | $ | 10.2 | ||||||||
Foreign | 32.3 | 30.6 | 41.5 | |||||||||||
State and local | 39.1 | 28.5 | 1.5 | |||||||||||
Total current | 91.5 | 69.4 | 53.2 | |||||||||||
Deferred: | ||||||||||||||
Federal | 141.9 | 82.4 | (18.6 | ) | ||||||||||
Foreign | 11.9 | (3.2 | ) | 1.3 | ||||||||||
State and local | (18.2 | ) | (4.8 | ) | (2.6 | ) | ||||||||
Total deferred | 135.6 | 74.4 | (19.9 | ) | ||||||||||
Total provision (benefit) | $ | 227.1 | $ | 143.8 | $ | 33.3 | ||||||||
The principal items of the U.S. and foreign net deferred tax assets and liabilities at December 31, 2012 and 2011 are as follows (in millions of dollars): | ||||||||||||||
2012 | 2011 | |||||||||||||
Deferred Tax Assets: | ||||||||||||||
Employee benefit plans | $ | 103.6 | $ | 102.8 | ||||||||||
Net operating loss carryforwards | 1,610.90 | 1,743.50 | ||||||||||||
Foreign tax credit carryforwards | 20.8 | 20.8 | ||||||||||||
Federal, state and foreign local tax credit carryforwards | 26.8 | 15 | ||||||||||||
Accrued and prepaid expenses | 341.7 | 327.4 | ||||||||||||
Total Deferred Tax Assets | 2,103.80 | 2,209.50 | ||||||||||||
Less: Valuation Allowance | (226.4 | ) | (186.7 | ) | ||||||||||
Total Net Deferred Tax Assets | 1,877.40 | 2,022.80 | ||||||||||||
Deferred Tax Liabilities: | ||||||||||||||
Depreciation on tangible assets | (3,081.4 | ) | (2,742.3 | ) | ||||||||||
Intangible assets | (1,477.1 | ) | (942.4 | ) | ||||||||||
Total Deferred Tax Liabilities | (4,558.5 | ) | (3,684.7 | ) | ||||||||||
Net Deferred Tax Liability | $ | (2,681.1 | ) | $ | (1,661.9 | ) | ||||||||
As of December 31, 2012, deferred tax assets of $1,294.3 million were recorded for unutilized U.S. Federal Net Operating Losses, or “NOL,” carry forwards of $3,697.9 million. The total Federal NOL carry forwards are $3,775.0 million of which $77.1 million relate 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 $27.0 million will be recorded to Additional paid-in capital. The Federal NOLs begin to expire in 2025. State NOLs exclusive of the effects of the excess tax deductions, have generated a deferred tax asset of $105.8 million. The state NOLs expire over various years beginning in 2013 depending upon particular jurisdiction. | ||||||||||||||
On January 1, 2009, Bank of America acquired Merrill Lynch. For U.S. income tax purposes the transaction, when combined with other unrelated transactions during the previous 36 months, resulted in a change in control as that term is defined in Section 382 of the Internal Revenue Code. Consequently, utilization of all pre-2009 U.S. net operating losses is subject to an annual limitation. We have calculated the expected annual base limitation as well as additional limitations resulting from a net unrealized built in gain as of the acquisition date and other adjustments. Based on the calculations, the limitation is not expected to result in a loss of net operating losses or have a material adverse impact on taxes. | ||||||||||||||
As of December 31, 2012, deferred tax assets of $248.5 million were recorded for foreign NOL carry forwards of $1,049.0 million. A valuation allowance of $200.6 million at December 31, 2012 was recorded against these deferred tax assets because those assets relate to jurisdictions that have historical losses and the likelihood exists that a portion of the NOL carry forwards may not be utilized in the future. | ||||||||||||||
The foreign NOL carry forwards of $1,049.0 million include $775.5 million which have an indefinite carry forward period and associated deferred tax assets of $170.6 million. The remaining foreign NOLs of $273.5 million are subject to expiration beginning in 2015 and have associated deferred tax assets of $77.9 million. | ||||||||||||||
As of December 31, 2012, deferred tax assets for U.S. Foreign Tax Credit carry forwards were $20.8 million which relate to credits generated as of December 31, 2007. The carry forwards will begin to expire in 2015. A valuation allowance of $13.5 million at December 31, 2012 was recorded against a portion of the U.S. foreign tax credit deferred tax assets in the likelihood that they may not be utilized in the future. A deferred tax asset was also recorded for various state tax credit carry forwards of $3.0 million, which will begin to expire in 2027. | ||||||||||||||
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 carry forwards and estimates of projected future taxable income. Based on the assessment, as of December 31, 2012, total valuation allowances of $226.4 million were recorded against deferred tax assets. Although realization is not assured, we have concluded that it is more likely than not the remaining deferred tax assets of $1,877.4 million will be realized and as such no valuation allowance has been provided on these assets. | ||||||||||||||
The significant items in the reconciliation of the statutory and effective income tax rates consisted of the following: | ||||||||||||||
Years ended December 31, | ||||||||||||||
2012 | 2011 | 2010 | ||||||||||||
Statutory Federal Tax Rate | 35 | % | 35 | % | 35 | % | ||||||||
Foreign tax differential | (3.2 | ) | (3.3 | ) | (32.1 | ) | ||||||||
State and local income taxes, net of federal income tax benefit | 2.9 | 3.2 | (5.2 | ) | ||||||||||
Change in state statutory rates, net of federal income tax benefit | (1.0 | ) | 0.5 | 5.1 | ||||||||||
Federal and foreign permanent differences | 2.3 | (1.1 | ) | (24.0 | ) | |||||||||
Withholding taxes | 1.7 | 2 | 26.2 | |||||||||||
Uncertain tax positions | (0.6 | ) | (0.8 | ) | 11.2 | |||||||||
Change in valuation allowance | 7.9 | 0.6 | 85.1 | |||||||||||
All other items, net | 0.2 | 2.4 | 1.8 | |||||||||||
Effective Tax Rate | 45.2 | % | 38.5 | % | 103.1 | % | ||||||||
The effective tax rate for the year ended December 31, 2012 was 45.2% as compared to 38.5% in the year ended December 31, 2011. The provision for taxes on income increased $83.3 million, primarily due to higher income before income taxes, changes in geographic earnings mix, changes in valuation allowances for losses in certain non-U.S. jurisdictions for which tax benefits cannot be realized and non-deductible compensation payments under Internal Revenue Code Section 280(G) related to the Dollar Thrifty acquisition. | ||||||||||||||
The negative effective tax rate in 2010 is primarily due to a lower loss before income taxes in 2010, valuation allowances for losses in certain non-U.S. jurisdictions for which tax benefits cannot be realized and differences in foreign tax rates versus the U.S. Federal tax rate and the impact of the France law change in 2010. | ||||||||||||||
As of December 31, 2012, our foreign subsidiaries have $270.3 million of undistributed earnings which would 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 undistributed earnings offshore. It is not practicable to estimate the amount of such deferred tax liabilities. 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, deferred tax liabilities will be recorded. | ||||||||||||||
As of December 31, 2012, total unrecognized tax benefits were $17.2 million, all of which, if recognized, would favorably impact the effective tax rate in future periods. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in millions of dollars): | ||||||||||||||
2012 | 2011 | 2010 | ||||||||||||
Balance at January 1 | $ | 21.6 | $ | 27.2 | $ | 25.6 | ||||||||
Increase (decrease) attributable to tax positions taken during prior periods | (6.8 | ) | (9.5 | ) | 0.3 | |||||||||
Increase attributable to tax positions taken during the current year | 2.4 | 3.9 | 1.3 | |||||||||||
Decrease attributable to settlements with taxing authorities | — | — | — | |||||||||||
Balance at December 31 | $ | 17.2 | $ | 21.6 | $ | 27.2 | ||||||||
We conduct business globally and, as a result, file one or more income tax returns in the U.S. and non-U.S. jurisdictions. In the normal course of business we are subject to examination by taxing authorities throughout the world. The open tax years for these jurisdictions span from 2003 to 2012. We are currently under audit by the Internal Revenue Service for tax years 2006 to 2009. Several U.S. state and non-U.S. jurisdictions are under audit. | ||||||||||||||
In many cases the uncertain tax positions are related to tax years that remain subject to examination by the relevant taxing authorities. It is reasonable that approximately $6.8 million of unrecognized tax benefits may reverse within the next twelve months due to settlement with the relevant taxing authorities and/or the filing of amended income tax returns. | ||||||||||||||
Net, after-tax interest and penalties related to the liabilities for unrecognized tax benefits are classified as a component of “Provision for taxes on income” in the consolidated statement of operations. During the years ended December 31, 2012, 2011 and 2010, approximately $0.6 million, $1.9 million and $0.2 million, respectively, in net, after-tax interest and penalties were recognized. As of December 31, 2012 and 2011, approximately $4.2 million and $3.7 million, respectively, of net, after-tax interest and penalties was accrued in our consolidated balance sheet within "Accrued taxes." |
Depreciation_of_Revenue_Earnin
Depreciation of Revenue Earning Equipment and Lease Charges | 6 Months Ended | 12 Months Ended | ||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | |||||||||||||||||||
Depreciation of Revenue Earning Equipment and Lease Charges | ||||||||||||||||||||
Depreciation of Revenue Earning Equipment and Lease Charges | Depreciation of Revenue Earning Equipment and Lease Charges | Depreciation of Revenue Earning Equipment and Lease Charges | ||||||||||||||||||
Depreciation of revenue earning equipment and lease charges includes the following (in millions of dollars): | Depreciation of revenue earning equipment and lease charges includes the following (in millions of dollars): | |||||||||||||||||||
Three Months Ended | Years Ended December 31, | |||||||||||||||||||
June 30, | 2012 | 2011 | 2010 | |||||||||||||||||
2013 | 2012 | Depreciation of revenue earning equipment | $ | 2,165.20 | $ | 1,921.80 | $ | 1,747.00 | ||||||||||||
Depreciation of revenue earning equipment | $ | 611.8 | $ | 539.5 | ||||||||||||||||
Adjustment of depreciation upon disposal of revenue earning equipment | (96.8 | ) | (112.2 | ) | 42.9 | |||||||||||||||
Adjustment of depreciation upon disposal of revenue earning equipment | 11.3 | (41.2 | ) | |||||||||||||||||
Rents paid for vehicles leased | 79.8 | 96.1 | 78.2 | |||||||||||||||||
Rents paid for vehicles leased | 18 | 21.5 | ||||||||||||||||||
Total | $ | 2,148.20 | $ | 1,905.70 | $ | 1,868.10 | ||||||||||||||
Total | $ | 641.1 | $ | 519.8 | ||||||||||||||||
The adjustment of depreciation upon disposal of revenue earning equipment for the year ended December 31, 2012, 2011 and 2010, included net gains of $83.2 million and $98.9 million and net loss of $32.9 million, respectively, on the disposal of vehicles used in our car rental operations and net gains of $13.5 million and $13.3 million and net loss of $10.0 million, respectively, on the disposal of industrial and construction equipment used in our equipment rental operations. | ||||||||||||||||||||
Depreciation rates are reviewed on a quarterly basis based on management's routine review of present and estimated future market conditions and their effect on residual values at the time of disposal. During the year ended December 31, 2012, depreciation rates being used to compute the provision for depreciation of revenue earning equipment were adjusted on certain vehicles in our car rental operations to reflect changes in the estimated residual values to be realized when revenue earning equipment is sold. These depreciation rate changes resulted in net decreases of $130.6 million and $13.8 million and a net increase of $19.1 million in depreciation expense for the years ended December 31, 2012, 2011 and 2010 respectively. The cumulative effect of the reduction in rates was indicative of the strong residual values experienced in the U.S. for the years ended December 31, 2012 and 2011. In 2012, 2011 and 2010, the depreciation rate changes in certain of our equipment rental operations resulted in an increase of $0.5 million, decrease of $4.4 million and increase of $3.6 million in depreciation expense, respectively. | ||||||||||||||||||||
Six Months Ended | ||||||||||||||||||||
June 30, | ||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
Depreciation of revenue earning equipment | $ | 1,184.80 | $ | 1,070.90 | ||||||||||||||||
Adjustment of depreciation upon disposal of revenue earning equipment | 10 | (80.6 | ) | |||||||||||||||||
Rents paid for vehicles leased | 33.3 | 44.6 | ||||||||||||||||||
Total | $ | 1,228.10 | $ | 1,034.90 | ||||||||||||||||
The adjustment of depreciation upon disposal of revenue earning equipment for the three months ended June 30, 2013 and 2012, included net losses of $17.5 million and net gains of $38.3 million, respectively, on the disposal of vehicles used in our car rental operations and gains of $6.2 million and $2.9 million, respectively, on the disposal of industrial and construction equipment used in our equipment rental operations. The adjustment of depreciation upon disposal of revenue earning equipment for the six months ended June 30, 2013 and 2012, included net losses of $20.8 million and net gains of $73.2 million, respectively, on the disposal of vehicles used in our car rental operations and net gains of $10.8 million and $7.4 million, respectively, on the disposal of industrial and construction equipment used in our equipment rental operations. | ||||||||||||||||||||
Depreciation rates are reviewed on a quarterly basis based on management's routine review of present and estimated future market conditions and their effect on residual values at the time of disposal. During the six months ended June 30, 2013, depreciation rates being used to compute the provision for depreciation of revenue earning equipment were adjusted on certain vehicles in our car rental operations to reflect changes in the estimated residual values to be realized when revenue earning equipment is sold. These depreciation rate changes resulted in net decreases of $14.8 million and $15.5 million in depreciation expense for the three-month and six-month periods ended June 30, 2013, respectively. Prospective changes include the impact of car sales channel diversification and acceleration of our retail sales expansion. During the three-month and six-month periods ended June 30, 2013, the depreciation rate changes in certain of our equipment rental operations resulted in a net decrease of $0.1 million and $0.0 million, respectively, in depreciation expense. |
Debt
Debt | 6 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | ||||||||||||||||||||||||||||
Debt | |||||||||||||||||||||||||||||
Debt | Debt | Debt | |||||||||||||||||||||||||||
Our debt consists of the following (in millions of dollars): | |||||||||||||||||||||||||||||
Our debt consists of the following (in millions of dollars): | |||||||||||||||||||||||||||||
Facility | Average Interest Rate at December 31, 2012(1) | Fixed or | Maturity | December 31, | December 31, | ||||||||||||||||||||||||
Facility | Average | Fixed or | Maturity | June 30, | December 31, | Floating | 2012 | 2011 | |||||||||||||||||||||
Interest Rate | Floating | 2013 | 2012 | Interest | |||||||||||||||||||||||||
at June 30, | Interest | Rate | |||||||||||||||||||||||||||
2013(1) | Rate | Corporate Debt | |||||||||||||||||||||||||||
Corporate Debt | Senior Term Facility | 3.75% | Floating | Mar-18 | $ | 2,125.50 | $ | 1,389.50 | |||||||||||||||||||||
Senior Term Facility | 3.26 | % | Floating | Mar-18 | $ | 2,114.80 | $ | 2,125.50 | |||||||||||||||||||||
Senior ABL Facility | 2.89 | % | Floating | Mar-16 | 1,005.80 | 195 | Senior ABL Facility | 2.47% | Floating | Mar-16 | 195 | — | |||||||||||||||||
Senior Notes(2) | 6.58 | % | Fixed | 4/2018 - 10/2022 | 3,900.00 | 3,650.00 | |||||||||||||||||||||||
Promissory Notes | 6.96 | % | Fixed | 6/2012 - 1/2028 | 48.7 | 48.7 | Senior Notes(2) | 6.74% | Fixed | 10/2018–10/2022 | 3,650.00 | 2,638.60 | |||||||||||||||||
Other Corporate Debt | 3.51 | % | Floating | Various | 58.5 | 88.7 | |||||||||||||||||||||||
Unamortized Net Premium (Corporate) | 3.2 | 3.3 | Promissory Notes | 6.96% | Fixed | 6/2012–1/2028 | 48.7 | 224.7 | |||||||||||||||||||||
Total Corporate Debt | 7,131.00 | 6,111.20 | Other Corporate Debt | 4.40% | Floating | Various | 88.7 | 49.6 | |||||||||||||||||||||
Fleet Debt | Unamortized Net (Discount) Premium (Corporate) | 3.3 | (6.9 | ) | |||||||||||||||||||||||||
HVF U.S. ABS Program | |||||||||||||||||||||||||||||
HVF U.S. Fleet Variable Funding Notes: | Total Corporate Debt | 6,111.20 | 4,295.50 | ||||||||||||||||||||||||||
HVF Series 2009-1(3) | 1.04 | % | Floating | Mar-14 | 2,590.00 | 2,350.00 | |||||||||||||||||||||||
Fleet Debt | |||||||||||||||||||||||||||||
2,590.00 | 2,350.00 | HVF U.S. ABS Program | |||||||||||||||||||||||||||
HVF U.S. Fleet Variable Funding Notes: | |||||||||||||||||||||||||||||
HVF U.S. Fleet Medium Term Notes | HVF Series 2009-1(3) | 1.11% | Floating | Mar-14 | 2,350.00 | 1,000.00 | |||||||||||||||||||||||
HVF Series 2009-2(3) | 5.37 | % | Fixed | 3/2013 - 3/2015 | 807.5 | 1,095.90 | |||||||||||||||||||||||
HVF Series 2010-1(3) | 3.77 | % | Fixed | 2/2014 - 2/2018 | 749.8 | 749.8 | HVF Series 2010-2(3) | N/A | Floating | Mar-13 | — | 170 | |||||||||||||||||
HVF Series 2011-1(3) | 2.86 | % | Fixed | 3/2015 - 3/2017 | 598 | 598 | |||||||||||||||||||||||
HVF Series 2013-1(3) | 1.68 | % | Fixed | 8/2016 - 8/2018 | 950 | — | HVF Series 2011-2(3) | N/A | Floating | Apr-12 | — | 175 | |||||||||||||||||
3,105.30 | 2,443.70 | 2,350.00 | 1,345.00 | ||||||||||||||||||||||||||
RCFC U.S. ABS Program | HVF U.S. Fleet Medium Term Notes | ||||||||||||||||||||||||||||
RCFC U.S. Fleet Variable Funding Notes | HVF Series 2009-2(3) | 5.11% | Fixed | 3/2013–3/2015 | 1,095.90 | 1,384.30 | |||||||||||||||||||||||
RCFC Series 2010-3 Notes(3)(4) | 1.03 | % | Floating | Dec-13 | 540 | 519 | |||||||||||||||||||||||
RCFC U.S. Fleet Medium Term Notes | HVF Series 2010-1(3) | 3.77% | Fixed | 2/2014–2/2018 | 749.8 | 749.8 | |||||||||||||||||||||||
RCFC Series 2011-1 Notes(3)(4) | 2.81 | % | Fixed | Feb-15 | 500 | 500 | |||||||||||||||||||||||
RCFC Series 2011-2 Notes(3)(4) | 3.21 | % | Fixed | May-15 | 400 | 400 | HVF Series 2011-1(3) | 2.86% | Fixed | 3/2015–3/2017 | 598 | 598 | |||||||||||||||||
1,440.00 | 1,419.00 | 2,443.70 | 2,732.10 | ||||||||||||||||||||||||||
Donlen ABS Program | |||||||||||||||||||||||||||||
Donlen GN II Variable Funding Notes(5) | 1 | % | Floating | Dec-13 | 943.8 | 899.3 | RCFC U.S. ABS Program | ||||||||||||||||||||||
RCFC U.S. Fleet Variable Funding Notes | |||||||||||||||||||||||||||||
Other Fleet Debt | RCFC Series 2010-3 Notes(3)(4) | 1.06% | Floating | Dec-13 | 519 | — | |||||||||||||||||||||||
U.S. Fleet Financing Facility | 2.95 | % | Floating | Sep-15 | 171 | 166 | |||||||||||||||||||||||
European Revolving Credit Facility | 2.67 | % | Floating | Jun-15 | 357.9 | 185.3 | RCFC U.S. Fleet Medium Term Notes | ||||||||||||||||||||||
European Fleet Notes | 8.5 | % | Fixed | Jul-15 | 520.5 | 529.4 | RCFC Series 2011-1 Notes(3)(4) | 2.81% | Fixed | Feb-15 | 500 | — | |||||||||||||||||
European Securitization(3) | 2.5 | % | Floating | Jul-14 | 363 | 242.2 | |||||||||||||||||||||||
Hertz-Sponsored Canadian Securitization(3) | 2.14 | % | Floating | Mar-14 | 124.2 | 100.5 | RCFC Series 2011-2 Notes(3)(4) | 3.21% | Fixed | May-15 | 400 | — | |||||||||||||||||
Dollar Thrifty Sponsored Canadian Securitization(3)(4) | 2.13 | % | Floating | Aug-14 | 76.4 | 55.3 | |||||||||||||||||||||||
Australian Securitization(3)(6) | 4.17 | % | Floating | Dec-14 | 119.7 | 148.9 | 1,419.00 | — | |||||||||||||||||||||
Brazilian Fleet Financing Facility | 13.89 | % | Floating | Oct-13 | 13 | 14 | |||||||||||||||||||||||
Capitalized Leases | 4.08 | % | Floating | Various | 429.6 | 337.6 | Donlen ABS Program | ||||||||||||||||||||||
Unamortized Discount (Fleet) | 8.8 | 12.1 | Donlen GN II Variable Funding Notes(3) | 1.15% | Floating | Dec-13 | 899.3 | 811.2 | |||||||||||||||||||||
2,184.10 | 1,791.30 | Other Fleet Debt | |||||||||||||||||||||||||||
U.S. Fleet Financing Facility | 3.27% | Floating | Sep-15 | 166 | 136 | ||||||||||||||||||||||||
Total Fleet Debt | 10,263.20 | 8,903.30 | |||||||||||||||||||||||||||
European Revolving Credit Facility | 2.86% | Floating | Jun-15 | 185.3 | 200.6 | ||||||||||||||||||||||||
Total Debt | $ | 17,394.20 | $ | 15,014.50 | |||||||||||||||||||||||||
European Fleet Notes | 8.50% | Fixed | Jul-15 | 529.4 | 517.7 | ||||||||||||||||||||||||
European Securitization(3) | 2.48% | Floating | Jul-14 | 242.2 | 256.2 | ||||||||||||||||||||||||
Note: | |||||||||||||||||||||||||||||
For further information on the definitions and terms of our debt, see Note 5 of the Notes to our audited annual consolidated financial statements included in our Form 10-K under the caption "Item 8—Financial Statements and Supplementary Data." | |||||||||||||||||||||||||||||
-1 | Facility | Average Interest Rate at December 31, 2012(1) | Fixed or | Maturity | December 31, | December 31, | |||||||||||||||||||||||
As applicable, reference is to the June 30, 2013 weighted average interest rate (weighted by principal balance). | Floating | 2012 | 2011 | ||||||||||||||||||||||||||
Interest | |||||||||||||||||||||||||||||
-2 | Rate | ||||||||||||||||||||||||||||
References to our "Senior Notes" include the series of Hertz's unsecured senior notes set forth in the table below. As of June 30, 2013 and December 31, 2012, the outstanding principal amount for each such series of the Senior Notes is as specified below. | Hertz-Sponsored Canadian Securitization(3) | 2.16% | Floating | Jun-13 | 100.5 | 68.3 | |||||||||||||||||||||||
Dollar Thrifty Sponsored Canadian Securitization(3)(4) | 2.13% | Floating | Aug-14 | 55.3 | — | ||||||||||||||||||||||||
Outstanding Principal | |||||||||||||||||||||||||||||
(in millions) | Australian Securitization(3) | 4.61% | Floating | Dec-14 | 148.9 | 169.3 | |||||||||||||||||||||||
Senior Notes | June 30, | December 31, | |||||||||||||||||||||||||||
2013 | 2012 | Brazilian Fleet Financing Facility | 13.07% | Floating | Feb-13 | 14 | 23.1 | ||||||||||||||||||||||
4.25% Senior Notes due April 2018 | $ | 250 | $ | — | |||||||||||||||||||||||||
7.50% Senior Notes due October 2018 | 700 | 700 | Capitalized Leases | 4.40% | Floating | Various | 337.6 | 363.7 | |||||||||||||||||||||
6.75% Senior Notes due April 2019 | 1,250.00 | 1,250.00 | |||||||||||||||||||||||||||
5.875% Senior Notes due October 2020 | 700 | 700 | Unamortized Net (Discount) Premium (Fleet) | 12.1 | (10.9 | ) | |||||||||||||||||||||||
7.375% Senior Notes due January 2021 | 500 | 500 | |||||||||||||||||||||||||||
6.25% Senior Notes due October 2022 | 500 | 500 | 1,791.30 | 1,724.00 | |||||||||||||||||||||||||
$ | 3,900.00 | $ | 3,650.00 | Total Fleet Debt | 8,903.30 | 6,612.30 | |||||||||||||||||||||||
Total Debt | $ | 15,014.50 | $ | 10,907.80 | |||||||||||||||||||||||||
-3 | |||||||||||||||||||||||||||||
Maturity reference is to the "expected final maturity date" as opposed to the subsequent "legal maturity date." The expected final maturity date is the date by which Hertz and investors in the relevant indebtedness expect the relevant indebtedness to be repaid. The legal final maturity date is the date on which the relevant indebtedness is legally due and payable. | _______________________________________________________________________________ | ||||||||||||||||||||||||||||
-4 | -1 | As applicable, reference is to the December 31, 2012 weighted average interest rate (weighted by principal balance). | |||||||||||||||||||||||||||
RCFC U.S. ABS Program and the Dollar Thrifty-Sponsored Canadian Securitization represent fleet debt acquired in connection with the Dollar Thrifty acquisition on November 19, 2012. | |||||||||||||||||||||||||||||
-2 | References to our "Senior Notes" include the series of Hertz's unsecured senior notes set forth in the table below. As of December 31, 2012 and December 31, 2011, the outstanding principal amount for each such series of the Senior Notes is also specified below. | ||||||||||||||||||||||||||||
Maturities | |||||||||||||||||||||||||||||
The aggregate amounts of maturities of debt for each of the twelve-month periods ending June 30 (in millions of dollars) are as follows: | Outstanding Principal (in millions) | ||||||||||||||||||||||||||||
Senior Notes | December 31, 2012 | 31-Dec-11 | |||||||||||||||||||||||||||
8.875% Senior Notes due January 2014 | $ | — | $ | 162.3 | |||||||||||||||||||||||||
2014 | $ | 7,028.30 | (including $6,741.1 of other short-term borrowings*) | ||||||||||||||||||||||||||
2015 | $ | 2,124.40 | 7.875% Senior Notes due January 2014 | — | 276.3 | -€ 213.50 | |||||||||||||||||||||||
2016 | $ | 1,140.00 | |||||||||||||||||||||||||||
2017 | $ | 366.5 | 7.50% Senior Notes due October 2018 | 700 | 700 | ||||||||||||||||||||||||
2018 | $ | 2,819.10 | |||||||||||||||||||||||||||
After 2018 | $ | 3,903.90 | 6.75% Senior Notes due April 2019 | 1,250.00 | 1,000.00 | ||||||||||||||||||||||||
5.875% Senior Notes due October 2020 | 700 | — | |||||||||||||||||||||||||||
* | |||||||||||||||||||||||||||||
Our short-term borrowings as of June 30, 2013 include, among other items, the amounts outstanding under the Senior ABL Facility, HVF U.S. Fleet Variable Funding Notes, RCFC U.S. Fleet Variable Funding Notes, Donlen GN II Variable Funding Notes, U.S. Fleet Financing Facility, European Revolving Credit Facility, European Securitization, Hertz-Sponsored Canadian Securitization, Dollar Thrifty-Sponsored Canadian Securitization, Australian Securitization, Brazilian Fleet Financing Facility and Capitalized Leases. These amounts are reflected as short-term borrowings, regardless of the facility maturity date, as these facilities are revolving in nature and/or the outstanding borrowings have maturities of three months or less. As of June 30, 2013, short-term borrowings had a weighted average interest rate of 1.8%. | 7.375% Senior Notes due January 2021 | 500 | 500 | ||||||||||||||||||||||||||
We are highly leveraged and a substantial portion of our liquidity needs arise from debt service on our indebtedness and from the funding of our costs of operations and capital expenditures. We believe that cash generated from operations and cash received on the disposal of vehicles and equipment, together with amounts available under various liquidity facilities will be adequate to permit us to meet our debt maturities over the next twelve months. | 6.25% Senior Notes due October 2022 | 500 | — | ||||||||||||||||||||||||||
Letters of Credit | $ | 3,650.00 | $ | 2,638.60 | |||||||||||||||||||||||||
As of June 30, 2013, there were outstanding standby letters of credit totaling $664.4 million. Of this amount, $638.0 million was issued under the Senior Credit Facilities. As of June 30, 2013, none of these letters of credit have been drawn upon. | |||||||||||||||||||||||||||||
2013 Events | -3 | Maturity reference is to the "expected final maturity date" as opposed to the subsequent "legal maturity date." The expected final maturity date is the date by which Hertz and investors in the relevant indebtedness expect the relevant indebtedness to be repaid. The legal final maturity date is the date on which the relevant indebtedness is legally due and payable. | |||||||||||||||||||||||||||
In January 2013, Hertz Vehicle Financing LLC, or "HVF," an insolvency remote, direct, wholly-owned, special purpose subsidiary of Hertz, completed the issuance of $950.0 million in aggregate principal amount of three year and five year Series 2013-1 Rental Car Asset Backed Notes, Class A and Class B. The $282.75 million of three year Class A notes carry a 1.12% coupon, the $42.25 million of three year Class B notes carry a 1.86% coupon, the $543.75 million of five year Class A notes carry a 1.83% coupon, and the $81.25 million of five year Class B notes carry a 2.48% coupon. The three year notes and five year notes have expected final payment dates in August 2016 and August 2018, respectively. The Class B notes are subordinated to the Class A notes. | -4 | RCFC U.S. ABS Program and the Dollar Thrifty-Sponsored Canadian Securitization represent fleet debt acquired in connection with the Dollar Thrifty acquisition on November 19, 2012. | |||||||||||||||||||||||||||
Maturities | |||||||||||||||||||||||||||||
The net proceeds from the sale of HVF's Series 2013-1 Rental Car Asset Backed Notes was, to the extent permitted by the applicable agreements, (i) used to pay the purchase price of vehicles acquired by HVF pursuant to HVF's U.S. ABS Program (as defined herein), (ii) used to pay the principal amount of other HVF U.S. ABS Program indebtedness that is then permitted or required to be paid or (iii) released to HVF to be distributed to Hertz or otherwise used by HVF for general purposes. | The aggregate amounts of maturities of debt for each of the twelve-month periods ending December 31 (in millions of dollars) are as follows: | ||||||||||||||||||||||||||||
In February 2013, Hertz caused its Brazilian operating subsidiary to amend the Brazilian Fleet Financing Facility to extend the maturity date from February 2013 to October 2013. | |||||||||||||||||||||||||||||
2013 | $ | 5,744.10 | (including $5,244.0 of other short-term borrowings*) | ||||||||||||||||||||||||||
In March 2013, Hertz issued $250 million in aggregate principal amount of 4.25% Senior Notes due 2018. The proceeds of this March 2013 offering were used by us to replenish a portion of our liquidity, after having dividended $467.2 million in available liquidity to Hertz Holdings, which Hertz Holdings used to repurchase 23,200,000 shares of its common stock in March 2013. | |||||||||||||||||||||||||||||
2014 | $ | 1,122.10 | |||||||||||||||||||||||||||
In April 2013, Hertz entered into an Amendment No. 2, or "Amendment No. 2," to the Senior Term Facility, primarily to reduce the interest rate applicable to a portion of the outstanding term loans under the Senior Term Facility. Prior to Amendment No. 2, approximately $1,372.0 million of tranche B term loans, or "Tranche B Term Loans", under the Senior Term Facility bore interest at a floating rate measured by reference to, at Hertz's option, either (i) an adjusted London inter-bank offered rate not less than 1.00 percent plus a borrowing margin of 2.75 percent per annum or (ii) an alternate base rate plus a borrowing margin of 1.75 percent per annum. Pursuant to Amendment No. 2, certain of the existing lenders under the Senior Term Facility converted their existing Tranche B Term Loans into a new tranche of tranche B-2 term loans, or the "Tranche B-2 Term Loans", in an aggregate principal amount, along with new loans advanced by certain new lenders, of approximately $1,372.0 million. The proceeds of Tranche B-2 Term Loans advanced by the new lenders were used to prepay in full all of the Tranche B Term Loans that were not converted into Tranche B-2 Term Loans. | |||||||||||||||||||||||||||||
2015 | $ | 1,894.10 | |||||||||||||||||||||||||||
The Tranche B-2 Term Loans bear interest at a floating rate measured by reference to, at Hertz's option, either (i) an adjusted London inter-bank offered rate not less than 0.75 percent plus a borrowing margin of 2.25 percent per annum or (ii) an alternate base rate plus a borrowing margin of 1.25 percent per annum. The terms and conditions of the new Tranche B-2 Term Loans with respect to maturity, collateral, and covenants are otherwise unchanged compared to the Tranche B Term Loans. | |||||||||||||||||||||||||||||
2016 | $ | 267.1 | |||||||||||||||||||||||||||
In May 2013, the U.K. Leveraged Financing was amended to provide for additional amounts available under the U.K. Leveraged Financing of £25 million (the equivalent of $38.3 million as of June 30, 2013) for a commitment period running from May 30, 2013 to October 30, 2013. | |||||||||||||||||||||||||||||
2017 | $ | 219.2 | |||||||||||||||||||||||||||
In May 2013, HVF amended the HVF Series 2009-1 Notes to permit aggregate maximum borrowings of $2,738.8 million (subject to borrowing base availability). | |||||||||||||||||||||||||||||
After 2017 | $ | 5,752.50 | |||||||||||||||||||||||||||
In June 2013, Hertz Holdings Netherlands B.V., an indirect wholly-owned subsidiary of Hertz organized under the laws of Netherlands, or "HHN BV," amended the European Revolving Credit Facility to provide for aggregate maximum borrowings of an additional €100 million (the equivalent of $130.1 million as of June 30, 2013), subject to borrowing base availability, for a commitment period running from June 12, 2013 to December 16, 2013. | |||||||||||||||||||||||||||||
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In the second quarter of 2013, HC Limited Partnership amended the Hertz-Sponsored Canadian Securitization to extend the maturity from June 2013 to March 2014. | |||||||||||||||||||||||||||||
For subsequent events relating to our indebtedness, see Note 18—Subsequent Events. | * | Our short-term borrowings as of December 31, 2012 include, among other items, the amounts outstanding under the Senior ABL Facility, HVF U.S. Fleet Variable Funding Notes, RCFC U.S. Fleet Variable Funding Notes, Donlen GN II Variable Funding Notes, U.S. Fleet Financing Facility, European Revolving Credit Facility, European Securitization, Hertz-Sponsored Canadian Securitization, Dollar Thrifty-Sponsored Canadian Securitization, Australian Securitization, Brazilian Fleet Financing Facility and Capitalized Leases. These amounts are reflected as short-term borrowings, regardless of the facility maturity date, as these facilities are revolving in nature and/or the outstanding borrowings have maturities of three months or less. As of December 31, 2012, short-term borrowings had a weighted average interest rate of 1.8%. | |||||||||||||||||||||||||||
We are highly leveraged and a substantial portion of our liquidity needs arise from debt service on our indebtedness and from the funding of our costs of operations, acquisitions and capital expenditures. We believe that cash generated from operations and cash received on the disposal of vehicles and equipment, together with amounts available under various liquidity facilities will be adequate to permit us to meet our debt maturities over the next twelve months. | |||||||||||||||||||||||||||||
Registration Rights | Letters of Credit | ||||||||||||||||||||||||||||
As of December 31, 2012, there were outstanding standby letters of credit totaling $681.4 million. Of this amount, $626.6 million was issued under the Senior Credit Facilities. As of December 31, 2012, none of these letters of credit have been drawn upon. | |||||||||||||||||||||||||||||
Pursuant to the terms of the exchange and registration rights agreement entered into in connection with the issuance of $250 million in aggregate principal amount of the 4.25% Senior Notes due 2018 in March 2013, Hertz agreed to file a registration statement under the Securities Act of 1933, as amended, to permit either the exchange of such notes for registered notes or, in the alternative, the registered resale of such notes. Hertz's failure to meet its obligations under the exchange and registration rights agreement, including by failing to have the registration statement become effective by March 2014 or failing to complete the exchange offer by April 2014, will result in Hertz incurring special interest on such notes at a per annum rate of 0.25% for the first 90 days of any period where any such failure has occurred and is continuing, which rate will be increased by an additional 0.25% during each subsequent 90 day period, up to a maximum of 0.50%. A registration statement on Form S-4 was filed with the SEC on June 26, 2013 covering the exchange of such notes. We do not believe the special interest obligation is probable, and as such, we have not recorded any amounts with respect to this registration payment arrangement. | Acquisition Bridge Financing | ||||||||||||||||||||||||||||
In August 2012 in conjunction with signing of the merger agreement with Dollar Thrifty, Hertz obtained $1,950.0 million in financing commitments for use in acquiring Dollar Thrifty. In October 2012 after having secured permanent financing for the Dollar Thrifty acquisition, Hertz terminated these commitments having never drawn upon them. | |||||||||||||||||||||||||||||
Guarantees and Security | CORPORATE DEBT | ||||||||||||||||||||||||||||
Senior Credit Facilities | |||||||||||||||||||||||||||||
In February 2013 and March 2013, we added Dollar Thrifty and certain of its subsidiaries as guarantors under certain of our debt instruments and credit facilities including the Senior Term Facility and the Senior Notes. There have been no material changes to the guarantees and security provisions of the debt instruments and credit facilities under which our indebtedness as of June 30, 2013 has been issued from the terms as disclosed in our Form 10-K. | Senior Term Facility: In March 2011, Hertz entered into a credit agreement that provides a $1,400.0 million term loan, or as amended, the ‘‘Senior Term Facility.’’ In addition, the Senior Term Facility includes a separate incremental pre-funded synthetic letter of credit facility in an aggregate principal amount of $200.0 million. Subject to the satisfaction of certain conditions and limitations, the Senior Term Facility allows for the incurrence of incremental term and/or revolving loans. | ||||||||||||||||||||||||||||
On October 9, 2012, Hertz entered into an Incremental Commitment Amendment to the Senior Term Facility which provided for commitments for the Incremental Term Loans of $750.0 million under the Senior Term Facility. Contemporaneously with the consummation of the Dollar Thrifty acquisition, the Incremental Term Loans were fully drawn and the proceeds therefrom were used to: (i) finance a portion of the consideration in connection with the Dollar Thrifty acquisition, (ii) pay off obligations of Dollar Thrifty and its subsidiaries in connection with the Dollar Thrifty acquisition and (iii) pay fees and other transaction expenses in connection with the Dollar Thrifty acquisition and the related financing transactions. | |||||||||||||||||||||||||||||
Financial Covenant Compliance | The Incremental Term Loans are secured by the same collateral and guaranteed by the same guarantors as the previously existing term loans under the Senior Term Facility. The Incremental Term Loans will, like the previously existing term loans under the Senior Term Facility, mature on March 11, 2018 and the interest rate per annum applicable thereto will be the same as such previously existing term loans. The other terms of the Incremental Term Loans are also generally the same. | ||||||||||||||||||||||||||||
Senior ABL Facility: In March 2011, Hertz, HERC, and certain other of our subsidiaries entered into a credit agreement that provides for aggregate maximum borrowings of $1,800.0 million (subject to borrowing base availability) on a revolving basis under an asset‑based revolving credit facility. We refer to this facility, as amended, from time to time, as the “Senior ABL Facility.” Up to $1,500.0 million of the Senior ABL Facility is available for the issuance of letters of credit, subject to certain conditions including issuing lender participation. Subject to the satisfaction of certain conditions and limitations, the Senior ABL Facility allows for the addition of incremental revolving and/or term loan commitments. In addition, the Senior ABL Facility permits Hertz to increase the amount of commitments under the Senior ABL Facility with the consent of each lender providing an additional commitment, subject to satisfaction of certain conditions. | |||||||||||||||||||||||||||||
Under the terms of our Senior Term Facility and Senior ABL Facility, we are not subject to ongoing financial maintenance covenants; however, under the Senior ABL Facility, failure to maintain certain levels of liquidity will subject the Hertz 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 June 30, 2013, we were not subject to such contractually specified fixed charge coverage ratio. | We refer to the Senior Term Facility and the Senior ABL Facility together as the “Senior Credit Facilities.” Hertz's obligations under the Senior Credit Facilities are guaranteed by its immediate parent (Hertz Investors, Inc.) and most of its direct and indirect domestic subsidiaries (subject to certain exceptions, including Hertz International Limited, which ultimately owns entities carrying on most of our international operations, and subsidiaries involved in the HVF U.S. Asset-Backed Securities, or "ABS," Program, the Donlen ABS Program and, the RCFC U.S. ABS Program). In addition, the obligations of the “Canadian borrowers” under the Senior ABL Facility are guaranteed by their respective subsidiaries, subject to certain exceptions. | ||||||||||||||||||||||||||||
The lenders under the Senior Credit Facilities have been granted a security interest in substantially all of the tangible and intangible assets of the borrowers and guarantors under those facilities, including pledges of the stock of certain of their respective domestic subsidiaries (subject, in each case, to certain exceptions, including certain vehicles). Each of the Senior Credit Facilities permits the incurrence of future indebtedness secured on a basis either equal to or subordinated to the liens securing the applicable Senior Credit Facility or on an unsecured basis. | |||||||||||||||||||||||||||||
Borrowing Capacity and Availability | We refer to Hertz and its subsidiaries as the Hertz credit group. The Senior Credit Facilities contain a number of covenants that, among other things, limit or restrict the ability of the Hertz credit group to dispose of assets, incur additional indebtedness, incur guarantee obligations, prepay certain indebtedness, make dividends and other restricted payments (including to the parent entities of Hertz and other persons), create liens, make investments, make acquisitions, engage in mergers, change the nature of their business, engage in certain transactions with affiliates that are not within the Hertz credit group or enter into certain restrictive agreements limiting the ability to pledge assets. | ||||||||||||||||||||||||||||
Under the Senior ABL Facility, failure to maintain certain levels of liquidity will subject the Hertz 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, 2012, we were not subject to such contractually specified fixed charge coverage ratio. | |||||||||||||||||||||||||||||
As of June 30, 2013, the following facilities were available for the use of Hertz and its subsidiaries (in millions of dollars): | Covenants in the Senior Term Facility restrict payment of cash dividends to any parent of Hertz, including Hertz Holdings, with certain exceptions, including: (i) in an aggregate amount not to exceed 1.0% of the greater of a specified minimum amount and the consolidated tangible assets of the Hertz credit group (which payments are deducted in determining the amount available as described in the next clause (ii)), (ii) in additional amounts up to a specified available amount determined by reference to, among other things, an amount set forth in the Senior Term Facility plus 50% of net income from January 1, 2011 to the end of the most recent fiscal quarter for which financial statements of Hertz are available (less certain investments) and (iii) in additional amounts not to exceed the amount of certain equity contributions made to Hertz. | ||||||||||||||||||||||||||||
Covenants in the Senior ABL Facility restrict payment of cash dividends to any parent of Hertz, including Hertz Holdings, except in an aggregate amount, taken together with certain investments, acquisitions and optional prepayments, not to exceed $200 million. Hertz may also pay additional cash dividends under the Senior ABL Facility so long as, among other things, (a) no specified default then exists or would arise as a result of making such dividends, (b) there is at least $200 million of liquidity under the Senior ABL Facility after giving effect to the proposed dividend, and (c) either (i) if such liquidity is less than $400 million immediately after giving effect to the making of such dividends, Hertz is in compliance with a specified fixed charge coverage ratio, or (ii) the amount of the proposed dividend does not exceed the sum of (x) 1.0% of tangible assets plus (y) a specified available amount determined by reference to, among other things, 50% of net income from January 1, 2011 to the end of the most recent fiscal quarter for which financial statements of Hertz are available plus (z) a specified amount of certain equity contributions made to Hertz. | |||||||||||||||||||||||||||||
In November 2012, we amended the Senior ABL Facility to deem letters of credit issued under Dollar Thrifty's now-terminated senior revolving credit facility to have been issued under the Senior ABL Facility. | |||||||||||||||||||||||||||||
Remaining | Availability Under | Senior Notes | |||||||||||||||||||||||||||
Capacity | Borrowing Base | In March 2012, Hertz issued an additional $250.0 million aggregate principal of the 6.75% Senior Notes due 2019. The proceeds of this March 2012 offering were used in March 2012 in part to redeem $162.3 million principal amount of Hertz's outstanding 8.875% Senior Notes due 2014 which resulted in the write-off of unamortized debt costs of $1.2 million recorded in "Interest expense" on our consolidated statement of operations. The remainder of the proceeds of this March 2012 offering, along with cash on hand or drawings under the Senior ABL Facility were used to redeem €213.5 million ($286.0 million) of Hertz's outstanding 7.875% Senior Notes due 2014, which resulted in the write-off of unamortized debt costs of $2.0 million recorded in "Interest expense" on our consolidated statement of operations. | |||||||||||||||||||||||||||
Limitation | In October 2012, HDTFS, Inc., a newly-formed, wholly-owned subsidiary of Hertz issued and sold $700.0 million aggregate principal amount of 5.875% Senior Notes due 2020 and $500.0 million aggregate principal amount of 6.250% Senior Notes due 2022 in a private offering. The gross proceeds of the offering were held in an escrow account until the date of the completion of the acquisition of Dollar Thrifty, at which time the gross proceeds of the offering were released from escrow and HDTFS, Inc. was merged into Hertz. | ||||||||||||||||||||||||||||
Corporate Debt | Hertz's obligations under the indentures for the Senior Notes are guaranteed by each of its direct and indirect domestic subsidiaries that is a guarantor under the Senior Term Facility. The guarantees of all of the Subsidiary Guarantors may be released to the extent such subsidiaries no longer guarantee our Senior Credit Facilities in the United States. HERC may also be released from its guarantee under the outstanding Senior Notes at any time at which no event of default under the related indenture has occurred and is continuing, notwithstanding that HERC may remain a subsidiary of Hertz. | ||||||||||||||||||||||||||||
Senior ABL Facility | $ | 357.3 | $ | 357.3 | The indentures for the Senior Notes contain covenants that, among other things, limit or restrict the ability of the Hertz credit group to incur additional indebtedness, incur guarantee obligations, prepay certain indebtedness, make certain restricted payments (including paying dividends, redeeming stock or making other distributions to parent entities of Hertz and other persons outside of the Hertz credit group), make investments, create liens, transfer or sell assets, merge or consolidate, and enter into certain transactions with Hertz's affiliates that are not members of the Hertz credit group. | ||||||||||||||||||||||||
The covenants in the indentures for the Senior Notes also restrict Hertz and other members of the Hertz credit group from redeeming stock or making loans, advances, dividends, distributions or other restricted payments to any entity that is not a member of the Hertz credit group, including Hertz Holdings, subject to certain exceptions. | |||||||||||||||||||||||||||||
Total Corporate Debt | 357.3 | 357.3 | Promissory Notes | ||||||||||||||||||||||||||
References to our “Promissory Notes” relate to our promissory notes issued under three separate indentures prior to the Acquisition. | |||||||||||||||||||||||||||||
Fleet Debt | FLEET DEBT | ||||||||||||||||||||||||||||
HVF U.S. Fleet Variable Funding Notes | 148.8 | — | The governing documents of certain of the fleet debt financing arrangements specified below contain covenants that, among other things, significantly limit or restrict (or upon certain circumstances may significantly restrict or prohibit) the ability of the borrowers, and the guarantors if applicable, to make certain restricted payments (including paying dividends, redeeming stock, making other distributions, loans or advances) to Hertz Holdings and Hertz, whether directly or indirectly. | ||||||||||||||||||||||||||
RCFC U.S. Fleet Variable Funding Notes | 60 | — | HVF U.S. ABS Program | ||||||||||||||||||||||||||
Donlen GN II Variable Funding Notes | 60 | — | Hertz Vehicle Financing LLC, an insolvency remote, direct, wholly‑owned, special purpose subsidiary of Hertz, or “HVF,” is the issuer under the HVF U.S. ABS Program. HVF has entered into a base indenture that permits it to issue term and revolving rental car asset‑backed securities, the collateral for which consists primarily of a substantial portion of the rental car fleet used in Hertz's (and through fleet sharing arrangements, a portion of the fleet used in Dollar Thrifty's) domestic car rental operations and contractual rights related to such vehicles. | ||||||||||||||||||||||||||
U.S. Fleet Financing Facility | 19 | — | References to the “HVF U.S. ABS Program” include HVF's U.S. Fleet Variable Funding Notes together with HVF's U.S. Fleet Medium Term Notes. | ||||||||||||||||||||||||||
European Revolving Credit Facility | 58.5 | — | HVF U.S. Fleet Variable Funding Notes | ||||||||||||||||||||||||||
European Securitization | 157.4 | — | References to the “HVF U.S. Fleet Variable Funding Notes” include HVF's Series 2009-1 Variable Funding Rental Car Asset Backed Notes, as amended, or the “Series 2009-1 Notes,” Series 2010-2 Variable Funding Rental Car Asset Backed Notes, or the “Series 2010-2 Notes,” and Series 2011-2 Variable Funding Rental Car Asset Backed Notes, or the “Series 2011-2 Notes,” collectively. As of December 31, 2012, the only U.S. Fleet Variable Funding Notes committed or outstanding were the Series 2009-1 Notes, which, as of December 31, 2012, permit aggregate maximum borrowings of $2,438.8 million (subject to borrowing base availability) on a revolving basis under an asset‑backed variable funding note facility. | ||||||||||||||||||||||||||
Hertz-Sponsored Canadian Securitization | 85 | — | In April 2012, HVF paid the HVF Series 2011-2 notes in full and terminated the related asset-backed variable funding note facility. | ||||||||||||||||||||||||||
Dollar Thrifty-Sponsored Canadian Securitization | 66.9 | — | In May 2012, HVF amended the HVF Series 2009-1 Notes to permit aggregate maximum borrowings of $2,188.0 million (subject to borrowing base availability). | ||||||||||||||||||||||||||
Australian Securitization | 112.3 | — | In October 2012, HVF amended the HVF Series 2009-1 Notes to permit aggregate maximum borrowings of $2,238.8 million (subject to borrowing base availability) and extend the expected final maturity by one year to March 2014. | ||||||||||||||||||||||||||
In December 2012, HVF paid the HVF Series 2010-2 Notes in full and terminated the related asset-backed variable funding note facility. At the same time, HVF amended the HVF Series 2009-1 Notes to permit aggregate maximum borrowings of $2,438.8 million (subject to borrowing base availability). | |||||||||||||||||||||||||||||
Total Fleet Debt | 767.9 | — | HVF U.S. Fleet Medium Term Notes | ||||||||||||||||||||||||||
References to the “HVF U.S. Fleet Medium Term Notes” include HVF's Series 2009-2 Notes, Series 2010-1 Notes and Series 2011-1 Notes, collectively. | |||||||||||||||||||||||||||||
Total | $ | 1,125.20 | $ | 357.3 | Series 2009-2 Notes: In October 2009, HVF issued the Series 2009-2 Rental Car Asset Back Notes, Class A, or the “HVF Series 2009-2 Class A Notes,” in an aggregate original principal amount of $1.2 billion. In June 2010, HVF issued the Subordinated Series 2009-2 Rental Car Asset Backed Notes, Class B, or the “HVF Series 2009-2 Class B Notes,” and together with the Series 2009-2 Class A, or the “HVF Series 2009-2 Notes,” in an aggregate original principal amount of $184.3 million. | ||||||||||||||||||||||||
Series 2010-1 Notes: In July 2010, HVF issued the Series 2010-1 Rental Car Asset Backed Notes, or the “HVF Series 2010-1 Notes,” in an aggregate original principal amount of $749.8 million. | |||||||||||||||||||||||||||||
Series 2011-1 Notes: In June 2011, HVF issued the Series 2011-1 Rental Car Asset Backed Notes, or the “HVF Series 2011-1 Notes,” in an aggregate original principal amount of $598.0 million. | |||||||||||||||||||||||||||||
Our borrowing capacity and availability primarily comes from our "revolving credit facilities," which are a combination of asset-backed securitization facilities and asset-based revolving credit facilities. Creditors under each of our revolving credit facilities have a claim on a specific pool of assets as collateral. Our ability to borrow under each revolving credit facility is a function of, among other things, the value of the assets in the relevant collateral pool. We refer to the amount of debt we can borrow given a certain pool of assets as the "borrowing base." | See Note 18—Subsequent Events. | ||||||||||||||||||||||||||||
RCFC U.S. ABS Program | |||||||||||||||||||||||||||||
We refer to "Remaining Capacity" as the maximum principal amount of debt permitted to be outstanding under the respective facility (i.e., the amount of debt we could borrow assuming we possessed sufficient assets as collateral) less the principal amount of debt then-outstanding under such facility. | Rental Car Finance Corporation, or “RCFC,” became an insolvency remote, indirect, wholly‑owned, special purpose subsidiary of Hertz when Hertz acquired Dollar Thrifty. RCFC is the issuer under the RCFC U.S. ABS Program. RCFC has entered into a base indenture that permits it to issue term and revolving rental car asset-backed securities, the collateral for which consists primarily of a substantial portion of the rental car fleet used in Dollar Thrifty's (and through fleet sharing arrangements, a portion of the fleet used in Hertz's) domestic car rental operations and contractual rights related to such vehicles. | ||||||||||||||||||||||||||||
References to the “RCFC U.S. ABS Program” include RCFC's U.S. Fleet Variable Funding Notes together with RCFC's U.S. Fleet Medium Term Notes. | |||||||||||||||||||||||||||||
We refer to "Availability Under Borrowing Base Limitation" as the lower of Remaining Capacity or the borrowing base less the principal amount of debt then-outstanding under such facility (i.e., the amount of debt we could borrow given the collateral we possess at such time). | RCFC U.S. Fleet Variable Funding Notes | ||||||||||||||||||||||||||||
References to the “RCFC U.S. Fleet Variable Funding Notes” are to the RCFC Series 2010-3 Variable Funding Rental Car Asset Backed Notes, as amended, or the “RCFC Series 2010-3 Notes,” which, as of December 31, 2012, permit aggregate maximum borrowings of $600.0 million (subject to borrowing base availability) on a revolving basis under an asset-backed variable funding note facility. | |||||||||||||||||||||||||||||
As of June 30, 2013, the Senior Term Facility had approximately $0.1 million available under the letter of credit facility and the Senior ABL Facility had $1,006.5 million available under the letter of credit facility sublimit, subject to borrowing base restrictions. | RCFC U.S. Fleet Medium Term Notes | ||||||||||||||||||||||||||||
References to the “RCFC U.S. Fleet Medium Term Notes” include RCFC's Series 2011-1 Notes and RCFC's Series 2011-2 Notes, collectively. | |||||||||||||||||||||||||||||
Substantially all of our revenue earning equipment and certain related assets are owned by special purpose entities, or are encumbered in favor of our lenders under our various credit facilities. | Series 2011-1 Notes: In July 2011, RCFC issued the Series 2011-1 Rental Car Asset Backed Notes, or the “RCFC Series 2011-1 Notes,” in an aggregate original principal amount of $500.0 million. | ||||||||||||||||||||||||||||
Series 2011-2 Notes: In October 2011, RCFC issued the Series 2011-2 Rental Car Asset Backed Notes, or the “RCFC Series 2011-2 Notes,” in an aggregate original principal amount of $400.0 million. | |||||||||||||||||||||||||||||
Some of these special purpose entities are consolidated variable interest entities, of which Hertz is the primary beneficiary, whose sole purpose is to provide commitments to lend in various currencies subject to borrowing bases comprised of rental vehicles and related assets of certain of Hertz International, Ltd.'s subsidiaries. As of June 30, 2013 and December 31, 2012, our International Fleet Financing No. 1 B.V., International Fleet Financing No. 2 B.V. and HA Funding Pty, Ltd. variable interest entities collectively had total assets primarily comprised of loans receivable and revenue earning equipment of $579.3 million and $440.8 million, respectively, and collectively had total liabilities primarily comprised of debt of $578.8 million and $440.3 million, respectively. | Donlen ABS Program | ||||||||||||||||||||||||||||
Donlen GN II Variable Funding Notes | |||||||||||||||||||||||||||||
On September 1, 2011, in connection with our acquisition of Donlen, Donlen's GN II Variable Funding Notes, or the "GN II VFN," remained outstanding and lender commitments thereunder were increased to permit aggregate maximum borrowings of $850.0 million (subject to borrowing base availability). | |||||||||||||||||||||||||||||
In February 2012, Hertz's indirect, wholly-owned subsidiary GN Funding II L.L.C., or “GN II,” amended the GN II VFN to permit aggregate maximum borrowings of $900.0 million (subject to borrowing base availability). | |||||||||||||||||||||||||||||
In July 2012, GN II amended the GN II VFN to extend the expected maturity to December 2012 and to permit aggregate maximum borrowings of $1,000.0 million (subject to borrowing base availability). | |||||||||||||||||||||||||||||
In October 2012, GN II amended the GN II VFN to extend the expected final maturity to December 2013. | |||||||||||||||||||||||||||||
Fleet Debt-Other | |||||||||||||||||||||||||||||
U.S. Fleet Financing Facility | |||||||||||||||||||||||||||||
In September 2006, Hertz and Puerto Ricancars, Inc., a Puerto Rican corporation and wholly‑owned indirect subsidiary of Hertz, or “PR Cars,” entered into a credit agreement that provides for aggregate maximum borrowings of $165.0 million (subject to borrowing base availability) on a revolving basis under an asset‑based revolving credit facility, or the “U.S. Fleet Financing Facility.” The U.S. Fleet Financing Facility is the primary fleet financing for our car rental operations in Hawaii, Kansas, Puerto Rico and the U.S. Virgin Islands. | |||||||||||||||||||||||||||||
The obligations of each of Hertz and PR Cars under the U.S. Fleet Financing Facility are guaranteed by certain of Hertz's direct and indirect domestic subsidiaries. In addition, the obligations of PR Cars under the U.S. Fleet Financing Facility are guaranteed by Hertz. The lenders under the U.S. Fleet Financing Facility have been granted a security interest primarily in the owned rental car fleet used in our car rental operations in Hawaii, Puerto Rico and the U.S. Virgin Islands and certain contractual rights related to rental vehicles in Kansas, Hawaii, Puerto Rico and the U.S. Virgin Islands. | |||||||||||||||||||||||||||||
In September 2011, we extended the maturity of our U.S. Fleet Financing Facility to September 2015 and increased the facility size to $190.0 million. In connection with the extension, we made a number of modifications to the financing arrangement including decreasing the advance rate and increasing pricing. | |||||||||||||||||||||||||||||
European Revolving Credit Facility and European Fleet Notes | |||||||||||||||||||||||||||||
In June 2010, Hertz Holdings Netherlands B.V., an indirect wholly‑owned subsidiary of Hertz organized under the laws of The Netherlands, or “HHN BV,” entered into a credit agreement that provides for aggregate maximum borrowings of €220.0 million (the equivalent of $291.2 million as of December 31, 2012) (subject to borrowing base availability) on a revolving basis under an asset‑based revolving credit facility, or the “European Revolving Credit Facility,” and issued the 8.50% Senior Secured Notes due July 2015, or the “European Fleet Notes,” in an aggregate original principal amount of €400.0 million (the equivalent of $529.4 million as of December 31, 2012). References to the “European Fleet Debt” include HHN BV's European Revolving Credit Facility and the European Fleet Notes, collectively. | |||||||||||||||||||||||||||||
The European Fleet Debt is the primary fleet financing for our car rental operations in Germany, Italy, Spain, Belgium, New Zealand and Luxembourg, and can be expanded to provide fleet financing in Australia, Canada, France, The Netherlands, Switzerland, and the United Kingdom. | |||||||||||||||||||||||||||||
The obligations of HHN BV under the European Fleet Debt are guaranteed by Hertz and certain of Hertz's domestic and foreign subsidiaries. | |||||||||||||||||||||||||||||
The agreements governing the European Revolving Credit Facility and the indenture governing the European Fleet Notes contain covenants that apply to the Hertz credit group similar to those for the Senior Notes. In addition, the agreements and indenture contain a combination of security arrangements, springing covenants and “no liens” covenants intended to give the lenders under the European Fleet Debt enhanced recourse to certain assets of HHN BV and certain foreign subsidiaries of Hertz. The terms of the European Fleet Debt permit HHN BV to incur additional indebtedness that would be pari passu with either the European Revolving Credit Facility or the European Fleet Notes. | |||||||||||||||||||||||||||||
In June 2012, HHN BV amended the European Revolving Credit Facility to extend the maturity date from June 2013 to June 2015. | |||||||||||||||||||||||||||||
European Securitization | |||||||||||||||||||||||||||||
In July 2010, certain foreign subsidiaries entered into a facility agreement that provides for aggregate maximum borrowings of €400.0 million (the equivalent of $529.4 million as of December 31, 2012) (subject to borrowing base availability) on a revolving basis under an asset‑backed securitization facility, or the “European Securitization.” The European Securitization is the primary fleet financing for our car rental operations in France and The Netherlands. The lenders under the European Securitization have been granted a security interest primarily in the owned rental car fleet used in our car rental operations in France and The Netherlands and certain contractual rights related to such vehicles. | |||||||||||||||||||||||||||||
In August 2011, certain foreign subsidiaries extended the expected maturity of our European Securitization Facility to July 2013. In connection with the extension, International Fleet Financing No. 2 B.V. made a number of modifications to the financing arrangement including increasing the advance rate and decreasing pricing. | |||||||||||||||||||||||||||||
In July 2012, International Fleet Financing No. 2 B.V. amended the European Securitization to extend the maturity from July 2013 to July 2014. | |||||||||||||||||||||||||||||
Hertz-Sponsored Canadian Securitization | |||||||||||||||||||||||||||||
In May 2007, certain foreign subsidiaries entered into a facility agreement that provides for aggregate maximum borrowings of CAD$225.0 million (the equivalent of $226.1 million as of December 31, 2012) (subject to borrowing base availability) on a revolving basis under an asset‑backed securitization facility, or as amended, the “Canadian Securitization.” The Canadian Securitization is the primary fleet financing for our car rental operations in Canada. The lender under the Canadian Securitization has been granted an indirect security interest primarily in the owned rental car fleet used in our car rental operations in Canada and certain contractual rights related to such vehicles as well as certain other assets owned by entities connected to the financing. | |||||||||||||||||||||||||||||
In November 2011, Hertz's indirect wholly owned subsidiary HC Limited Partnership extended the maturity of the Canadian Securitization to January 2012 and reduced the facility size to CAD$200.0 million (equivalent to $201.0 million as of December 31, 2012). In connection with the extension, HC Limited Partnership made a number of modifications to the financing arrangement including decreasing the pricing. | |||||||||||||||||||||||||||||
In January 2012, HC Limited Partnership amended the Canadian Securitization to extend the maturity date from January 2012 to March 2012. In March 2012, HC Limited Partnership amended the Canadian Securitization to extend the maturity date from March 2012 to May 2012. In the second quarter of 2012, the maturity date was extended to June 2013. | |||||||||||||||||||||||||||||
Dollar Thrifty-Sponsored Canadian Securitization | |||||||||||||||||||||||||||||
In March 2012 certain foreign subsidiaries of Dollar Thrifty entered into a trust indenture that permits the issuance of term and revolving rental car asset-backed securities, the collateral for which consists primarily of the rental car fleet used in Dollar Thrifty’s Canadian car rental operations and contractual rights related to such vehicles. These subsidiaries became indirect wholly-owned subsidiaries of Hertz when Hertz acquired Dollar Thrifty. | |||||||||||||||||||||||||||||
In March 2012 these subsidiaries issued asset-backed variable funding notes that provide for aggregate maximum borrowings of CAD$150.0 million (the equivalent of $150.7 million as of December 31, 2012) (subject to borrowing base availability) on a revolving basis, or the “Dollar Thrifty-Sponsored Canadian Securitization.” The expected final maturity of the Dollar Thrifty-Sponsored Canadian Securitization is August 2014. | |||||||||||||||||||||||||||||
Australian Securitization | |||||||||||||||||||||||||||||
In November 2010, certain foreign subsidiaries entered into a facility agreement that provides for aggregate maximum borrowings of A$250.0 million (the equivalent of $259.4 million as of December 31, 2012) (subject to borrowing base availability) on a revolving basis under an asset‑backed securitization facility, or the “Australian Securitization.” The Australian Securitization is the primary fleet financing for Hertz's car rental operations in Australia. The lender under the Australian Securitization has been granted a security interest primarily in the owned rental car fleet used in our car rental operations in Australia and certain contractual rights related to such vehicles. In connection with the issuance of the Australian Securitization, an interest rate cap was purchased by a subsidiary, HA Fleet Pty Limited. Concurrently, Hertz sold an offsetting interest rate cap, thereby neutralizing the hedge on a consolidated basis and reducing the net cost of the hedge. | |||||||||||||||||||||||||||||
In October 2012, Hertz's indirect, wholly-owned subsidiary HA Fleet Pty Limited amended the Australian Securitization to extend the expected maturity date thereunder to December 2014 in connection with this transaction both HA Fleet Pty Limited and Hertz amended the existing interest rate caps, modifying and extending the amortization schedule to the new maturity date of the securitization. | |||||||||||||||||||||||||||||
See Note 14—Financial Instruments. | |||||||||||||||||||||||||||||
Brazilian Fleet Financing Facility | |||||||||||||||||||||||||||||
As of December 31, 2012, our Brazilian operating subsidiary is party to certain local financing arrangements, which are collateralized by certain of its assets, which we refer to as the "Brazilian Fleet Financing Facility." | |||||||||||||||||||||||||||||
In June 2012, Hertz caused its Brazilian operating subsidiary to amend the Brazilian Fleet Financing Facility to extend the maturity date from June 2012 to February 2013. | |||||||||||||||||||||||||||||
See Note 18—Subsequent Events. | |||||||||||||||||||||||||||||
Capitalized Leases | |||||||||||||||||||||||||||||
References to the “Capitalized Leases” include the capitalized lease financings outstanding in the United Kingdom, or the “U.K. Leveraged Financing,” Australia, The Netherlands and the United States. The amount available under the U.K. Leveraged Financing, which is the largest portion of the Capitalized Leases, as of December 31, 2012 was £195 million (the equivalent of $314.0 million as of December 31, 2012). | |||||||||||||||||||||||||||||
Restricted Net Assets | |||||||||||||||||||||||||||||
As a result of the contractual restrictions on Hertz's or its subsidiaries' ability to pay dividends (directly or indirectly) under various terms of our debt, as of December 31, 2012, the restricted net assets of our subsidiaries exceeded 25% of our total consolidated net assets. | |||||||||||||||||||||||||||||
Registration Rights | |||||||||||||||||||||||||||||
Hertz entered into exchange and registration rights agreements entered into in connection with (i) the issuance of $250 million in aggregate principal amount of the 6.75% Senior Notes due 2019 in March 2012, and (ii) the release from escrow of the proceeds of $700 million aggregate principal amount of 5.875% Senior Notes due 2020 and $500 million aggregate principal amount of 6.250% Senior Notes due 2022. Pursuant to the terms of these agreements, Hertz agreed to file a registration statement under the Securities Act of 1933, as amended, to permit either the exchange of such notes for registered notes or, in the alternative, the registered resale of such notes. Hertz's failure to meet its obligations under either exchange and registration rights agreement, including by failing to have the registration statement become effective by the date that is 365 days after the respective date of the exchange and registration rights agreement or failing to complete the exchange offer by the date that is 395 days after the date of the exchange and registration rights agreement, will result in Hertz incurring special interest on such notes at a per annum rate of 0.25% for the first 90 days of any period where a default has occurred and is continuing, which rate will be increased by an additional 0.25% during each subsequent 90 day period, up to a maximum of 0.50%. A registration statement on Form S-4 covering the exchange of such notes was declared effective by the SEC on February 1, 2013 and the exchange offer is scheduled to be completed on March 6, 2013, so we do not believe the special interest obligation is probable, and as such, we have not recorded any amounts for special interest with respect to these notes. | |||||||||||||||||||||||||||||
Financial Covenant Compliance | |||||||||||||||||||||||||||||
Under the terms of our Senior Term Facility and Senior ABL Facility, we are not subject to ongoing financial maintenance covenants; however, under the Senior ABL Facility, failure to maintain certain levels of liquidity will subject the Hertz 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, 2012, we were not subject to such contractually specified fixed charge coverage ratio. | |||||||||||||||||||||||||||||
Borrowing Capacity and Availability | |||||||||||||||||||||||||||||
As of December 31, 2012, the following facilities were available for the use of Hertz and its subsidiaries (in millions of dollars): | |||||||||||||||||||||||||||||
Remaining | Availability Under | ||||||||||||||||||||||||||||
Capacity | Borrowing Base | ||||||||||||||||||||||||||||
Limitation | |||||||||||||||||||||||||||||
Corporate Debt | |||||||||||||||||||||||||||||
Senior ABL Facility | $ | 1,183.70 | $ | 1,146.00 | |||||||||||||||||||||||||
Total Corporate Debt | 1,183.70 | 1,146.00 | |||||||||||||||||||||||||||
Fleet Debt | |||||||||||||||||||||||||||||
HVF U.S. Fleet Variable Funding Notes | 88.8 | — | |||||||||||||||||||||||||||
RCFC U.S. Fleet Variable Funding Notes | 81 | — | |||||||||||||||||||||||||||
Donlen GN II Variable Funding Notes | 105 | — | |||||||||||||||||||||||||||
U.S. Fleet Financing Facility | 24 | — | |||||||||||||||||||||||||||
European Revolving Credit Facility | 105.9 | 7.9 | |||||||||||||||||||||||||||
European Securitization | 287.2 | — | |||||||||||||||||||||||||||
Hertz-Sponsored Canadian Securitization | 100.5 | — | |||||||||||||||||||||||||||
Dollar Thrifty-Sponsored Canadian Securitization | 95.5 | — | |||||||||||||||||||||||||||
Australian Securitization | 110.5 | — | |||||||||||||||||||||||||||
Capitalized Leases | 85.1 | 27.5 | |||||||||||||||||||||||||||
Total Fleet Debt | 1,083.50 | 35.4 | |||||||||||||||||||||||||||
Total | $ | 2,267.20 | $ | 1,181.40 | |||||||||||||||||||||||||
Our borrowing capacity and availability primarily comes from our "revolving credit facilities," which are a combination of asset-backed securitization facilities and asset-based revolving credit facilities. Creditors under each of our revolving credit facilities have a claim on a specific pool of assets as collateral. Our ability to borrow under each revolving credit facility is a function of, among other things, the value of the assets in the relevant collateral pool. We refer to the amount of debt we can borrow given a certain pool of assets as the "borrowing base." | |||||||||||||||||||||||||||||
We refer to "Remaining Capacity" as the maximum principal amount of debt permitted to be outstanding under the respective facility (i.e., the amount of debt we could borrow assuming we possessed sufficient assets as collateral) less the principal amount of debt then-outstanding under such facility. | |||||||||||||||||||||||||||||
We refer to "Availability Under Borrowing Base Limitation" as the lower of Remaining Capacity or the borrowing base less the principal amount of debt then-outstanding under such facility (i.e., the amount of debt we could borrow given the collateral we possess at such time). | |||||||||||||||||||||||||||||
As of December 31, 2012, the Senior Term Facility had approximately $8.0 million available under the letter of credit facility and the Senior ABL Facility had $1,010.4 million available under the letter of credit facility sublimit, subject to borrowing base restrictions. | |||||||||||||||||||||||||||||
Substantially all of our revenue earning equipment and certain related assets are owned by special purpose entities, or are encumbered in favor of our lenders under our various credit facilities. | |||||||||||||||||||||||||||||
Some of these special purpose entities are consolidated variable interest entities, of which we are the primary beneficiary, whose sole purpose is to provide commitments to lend in various currencies subject to borrowing bases comprised of rental vehicles and related assets of certain of Hertz International, Ltd.'s subsidiaries. As of December 31, 2012 and December 31, 2011, our International Fleet Financing No. 1 B.V., International Fleet Financing No. 2 B.V. and HA Funding Pty, Ltd. variable interest entities had total assets primarily comprised of loans receivable and revenue earning equipment of $440.8 million and $456.3 million, respectively, and total liabilities primarily comprised of debt of $440.3 million and $455.8 million, respectively. | |||||||||||||||||||||||||||||
Accrued Interest | |||||||||||||||||||||||||||||
As of December 31, 2012 and 2011, accrued interest was $86.4 million and $85.7 million, respectively, which is reflected in our consolidated balance sheet in “Other accrued liabilities.” | |||||||||||||||||||||||||||||
For subsequent events relating to our indebtedness, see Note 18—Subsequent Events. |
Employee_Retirement_Benefits
Employee Retirement Benefits | 6 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Retirement Benefits | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Retirement Benefits | Employee Retirement Benefits | Employee Retirement Benefits | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The following table sets forth the net periodic pension and postretirement (including health care, life insurance and auto) expense (in millions of dollars): | Qualified U.S. employees, after completion of specified periods of service, are eligible to participate in The Hertz Corporation Account Balance Defined Benefit Pension Plan, or the “Hertz Retirement Plan,” a cash balance plan. Under this qualified Hertz Retirement Plan, we pay the entire cost and employees are not required to contribute. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Most of our international subsidiaries have defined benefit retirement plans or participate in various insured or multiemployer plans. In certain countries, when the subsidiaries make the required funding payments, they have no further obligations under such plans. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Company plans are generally funded, except for certain nonqualified U.S. defined benefit plans and in Germany and France, where unfunded liabilities are recorded. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension Benefits | Postretirement | We sponsor defined contribution plans for certain eligible U.S. and non-U.S. employees. We match contributions of participating employees on the basis specified in the plans. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. | Non-U.S. | Benefits (U.S.) | An amendment to the Hertz Corporation Account Balance Defined Benefit Plan took effect on January 1, 2012. A fixed interest rate of 3% will be applied to cash balance credits in 2012 and later years. Previously, it was the rate published by the Pension Benefit Guarantee Corporation, or “PGBC,” for the December prior to the year the credit was earned. Also effective January 1, 2012, service credit rates for each employee will be determined on the first day of the year. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, | We sponsored a defined benefit pension plan in the U.K. On June 30, 2011, we approved an agreement with the trustees of that plan to cease all future benefit accruals to existing members and to close the plan to new members. Effective July 1, 2011, we introduced a defined contribution plan with company matching contributions to replace the defined benefit pension plan. The company matching contributions are generally 100% of the employee contributions, up to 8% of pay, except that former members of the defined benefit plan receive an enhanced match for five years. This will result in lower contributions this year into the defined benefit plan, which will be offset by matching contributions to the new defined contribution plan. In the year ended December 31, 2011, we recognized a gain of $13.1 million for the U.K. plan that represented unamortized prior service cost from a 2010 amendment that eliminated discretionary pension increases related to pre-1997 service primarily related to inactive employees. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | We also sponsor postretirement health care and life insurance benefits for a limited number of employees with hire dates prior to January 1, 1990. The postretirement health care plan is contributory with participants' contributions adjusted annually. An unfunded liability is recorded. We also have a key officer postretirement car benefit plan that provides the use of a vehicle for retired Senior Vice Presidents and above who have a minimum of 20 years of service and who retired at age 58 or above. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Net Periodic | We use a December 31 measurement date for all of our plans. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefit Cost: | The following tables set forth the funded status and the net periodic pension cost of the Hertz Retirement Plan, other postretirement benefit plans (including health care and life insurance plans covering domestic (“U.S.”) employees and the retirement plans for international operations (“Non-U.S.”), together with amounts included in our consolidated balance sheets and statements of operations (in millions of dollars): | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Service cost | $ | 7.1 | $ | 7 | $ | 0.7 | $ | 0.3 | $ | — | $ | 0.1 | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest cost | 6.9 | 7.4 | 2.3 | 2.3 | 0.1 | 0.2 | Pension Benefits | Postretirement | ||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. | Non-U.S. | Benefits (U.S.) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expected return on plan assets | (7.5 | ) | (8.0 | ) | (3.2 | ) | (3.0 | ) | — | — | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | ||||||||||||||||||||||||||||||||||||||||||||
Change in Benefit Obligation | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net amortizations | 4 | 3.2 | 0.1 | (0.1 | ) | 0.1 | — | Benefit obligation at January 1 | $ | 606.4 | $ | 549.7 | $ | 190.8 | $ | 201.5 | $ | 18.2 | $ | 19 | ||||||||||||||||||||||||||||||||||||||||
Net pension / | Service cost | 24.8 | 26.2 | 1.9 | 4 | 0.2 | 0.2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
postretirement expense | $ | 10.5 | $ | 9.6 | $ | (0.1 | ) | $ | (0.5 | ) | $ | 0.2 | $ | 0.3 | ||||||||||||||||||||||||||||||||||||||||||||||
Interest cost | 28.2 | 27.5 | 9.7 | 11 | 0.8 | 0.9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee contributions | — | — | 0.1 | 0.7 | 0.8 | 0.9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension Benefits | Postretirement | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. | Non-U.S. | Benefits (U.S.) | Plan amendments | — | (10.2 | ) | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | Plan curtailments | — | — | — | (5.9 | ) | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Components of Net Periodic | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefit Cost: | Plan settlements | (5.4 | ) | (7.4 | ) | — | 0.1 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Service cost | $ | 14.4 | $ | 13.3 | $ | 1.3 | $ | 0.6 | $ | 0.1 | $ | 0.2 | ||||||||||||||||||||||||||||||||||||||||||||||||
Benefits paid | (29.9 | ) | (18.4 | ) | (5.5 | ) | (4.0 | ) | (2.2 | ) | (2.2 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest cost | 13.6 | 13.9 | 4.6 | 4.6 | 0.3 | 0.4 | Foreign exchange translation | — | — | 7.7 | (1.0 | ) | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Expected return on plan assets | (15.0 | ) | (15.3 | ) | (6.3 | ) | (6.0 | ) | — | — | Actuarial loss (gain) | 54.8 | 39 | 9.4 | (15.1 | ) | 1.2 | (0.6 | ) | |||||||||||||||||||||||||||||||||||||||||
Net amortizations | 8.3 | 6 | 0.2 | (0.1 | ) | 0.1 | — | Plan combination | — | — | 10.4 | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Net pension / | Other | — | — | (0.1 | ) | (0.5 | ) | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
postretirement expense | $ | 21.3 | $ | 17.9 | $ | (0.2 | ) | $ | (0.9 | ) | $ | 0.5 | $ | 0.6 | ||||||||||||||||||||||||||||||||||||||||||||||
Benefit obligation at December 31 | $ | 678.9 | $ | 606.4 | $ | 224.4 | $ | 190.8 | $ | 19 | $ | 18.2 | ||||||||||||||||||||||||||||||||||||||||||||||||
Our policy for funded plans is to contribute annually, at a minimum, amounts required by applicable laws, regulations and union agreements. From time to time we make contributions beyond those legally required. For the three and six months ended June 30, 2013, we contributed $6.9 million and $10.6 million, respectively, to our worldwide pension plans. For the three and six months ended June 30, 2012, we contributed $11.8 million and $32.2 million, respectively, to our worldwide pension plans. We expect to contribute between $10 million and $20 million to our U.S. plan during the remainder of 2013. 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. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
We also sponsor postretirement health care and life insurance benefits for a limited number of employees with hire dates prior to January 1, 1990. The postretirement health care plan is contributory with participants' contributions adjusted annually. An unfunded liability is recorded. We also have a key officer postretirement car benefit plan that provides the use of a vehicle from our fleet and insurance for the participants' benefit for retired Executive Vice Presidents and above who have a minimum of 20 years of service and who retire at age 58 or above. The assigned car benefit is available for 15 years postretirement or until the participant reaches the age of 80, whichever occurs last. | Change in Plan Assets | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
We participate in various "multiemployer" pension plans. In the event that we withdraw from participation in one of these plans, then applicable law could require us to make an additional lump-sum contribution to the plan, and we would have to reflect that as an expense in our consolidated statement of operations and as a liability on our condensed consolidated balance sheet. Our withdrawal liability for any multiemployer plan would depend on the extent of the plan's funding of vested benefits. At least one multiemployer plan in which we participate is reported to have, and other of our multiemployer plans could have, significant underfunded liabilities. Such underfunding may increase in the event other employers become insolvent or withdraw from the applicable plan or upon the inability or failure of withdrawing employers to pay their withdrawal liability. In addition, such underfunding may increase as a result of lower than expected returns on pension fund assets or other funding deficiencies. The occurrence of any of these events could have a material adverse effect on our consolidated financial position, results of operations or cash flows. | Fair value of plan assets at January 1 | $ | 423.2 | $ | 365.9 | $ | 157 | $ | 152.8 | $ | — | $ | — | |||||||||||||||||||||||||||||||||||||||||||||||
During 2012, Hertz completely withdrew employees from an existing multi-employer pension plan with the Central States Pension Fund, or the "Pension Fund," and entered into a new agreement with the Pension Fund. In connection with the complete withdrawal from the Pension Fund, Hertz was subject to a withdrawal liability of approximately $23.2 million, which was paid in December 2012. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Actual return on plan assets | 64.2 | 15.3 | 15.6 | (7.6 | ) | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Company contributions | 46.3 | 67.8 | 4.7 | 16 | 1.4 | 1.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee contributions | — | — | 0.1 | 0.7 | 0.8 | 0.9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Plan settlements | (5.4 | ) | (7.4 | ) | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefits paid | (29.9 | ) | (18.4 | ) | (5.5 | ) | (4.0 | ) | (2.2 | ) | (2.2 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
Foreign exchange translation | — | — | 6.5 | (0.7 | ) | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | — | — | (0.1 | ) | (0.2 | ) | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value of plan assets at December 31 | $ | 498.4 | $ | 423.2 | $ | 178.3 | $ | 157 | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Funded Status of the Plan | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Plan assets less than benefit obligation | $ | (180.5 | ) | $ | (183.2 | ) | $ | (46.1 | ) | $ | (33.8 | ) | $ | (19.0 | ) | $ | (18.2 | ) | ||||||||||||||||||||||||||||||||||||||||||
Pension Benefits | Postretirement | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. | Non-U.S. | Benefits (U.S.) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2012 | 2011 | 2012 | 2011 | 2012 | 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amounts recognized in balance sheet: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Liabilities | $ | (180.5 | ) | $ | (183.2 | ) | $ | (46.1 | ) | $ | (33.8 | ) | $ | (19.0 | ) | $ | (18.2 | ) | ||||||||||||||||||||||||||||||||||||||||||
Net obligation recognized in the balance sheet | $ | (180.5 | ) | $ | (183.2 | ) | $ | (46.1 | ) | $ | (33.8 | ) | $ | (19.0 | ) | $ | (18.2 | ) | ||||||||||||||||||||||||||||||||||||||||||
Prior service credit (cost) | $ | 9.1 | $ | 10.1 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Net gain (loss) | (167.6 | ) | (160.3 | ) | (17.5 | ) | (10.7 | ) | (2.3 | ) | (1.2 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated other comprehensive loss | (158.5 | ) | (150.2 | ) | (17.5 | ) | (10.7 | ) | (2.3 | ) | (1.2 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
Unfunded accrued pension or postretirement benefit | (22.0 | ) | (33.0 | ) | (28.6 | ) | (23.1 | ) | (16.7 | ) | (17.0 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
Net obligation recognized in the balance sheet | $ | (180.5 | ) | $ | (183.2 | ) | $ | (46.1 | ) | $ | (33.8 | ) | $ | (19.0 | ) | $ | (18.2 | ) | ||||||||||||||||||||||||||||||||||||||||||
Total recognized in other comprehensive (income) loss | $ | 8.3 | $ | 34.5 | $ | 6.8 | $ | 12.2 | $ | 1.1 | $ | (0.7 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Total recognized in net periodic benefit cost and other comprehensive (income) loss | $ | 43.5 | $ | 67.1 | $ | 6.1 | $ | 0.9 | $ | 2.1 | $ | 0.5 | ||||||||||||||||||||||||||||||||||||||||||||||||
Estimated amounts that will be amortized from accumulated other comprehensive (income) loss over the next fiscal year: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net gain (loss) | $ | (16.0 | ) | $ | (11.1 | ) | $ | (0.4 | ) | $ | 0.1 | $ | (0.1 | ) | $ | (0.1 | ) | |||||||||||||||||||||||||||||||||||||||||||
Accumulated Benefit Obligation at December 31 | $ | 619.2 | $ | 537 | $ | 216.8 | $ | 187.6 | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted‑average assumptions as of December 31 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discount rate | 4 | % | 4.7 | % | 4.3 | % | 4.8 | % | 3.6 | % | 4.4 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
Expected return on assets | 7.6 | % | 8 | % | 7.4 | % | 7.4 | % | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||||
Average rate of increase in compensation | 4.6 | % | 4.6 | % | 2 | % | 2.1 | % | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||||
Initial health care cost trend rate | N/A | N/A | N/A | N/A | 7.8 | % | 8.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Ultimate health care cost trend rate | N/A | N/A | N/A | N/A | 4.5 | % | 4.5 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of years to ultimate trend rate | N/A | N/A | N/A | N/A | 17 | 18 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
The discount rate used to determine the December 31, 2012 benefit obligations for U.S. pension plans is based on the rate from the Mercer Pension Discount Curve-Above Mean Yield that is appropriate for the duration of our plan liabilities. For our plans outside the U.S., the discount rate reflects the market rates for an optimized subset of high-quality corporate bonds currently available. The discount rate in a country was determined based on a yield curve constructed from high quality corporate bonds in that country. The rate selected from the yield curve has a duration that matches our plan. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The expected return on plan assets for each funded plan is based on expected future investment returns considering the target investment mix of plan assets. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The following table sets forth the net periodic pension and postretirement (including health care, life insurance and auto) expense (in millions of dollars): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension Benefits | Postretirement | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. | Non-U.S. | Benefits (U.S.) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2012 | 2011 | 2010 | 2012 | 2011 | 2010 | 2012 | 2011 | 2010 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Net Periodic Benefit Cost: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Service cost | $ | 24.8 | $ | 26.2 | $ | 24 | $ | 1.9 | $ | 4 | $ | 5.2 | $ | 0.2 | $ | 0.2 | $ | 0.3 | ||||||||||||||||||||||||||||||||||||||||||
Interest cost | 28.2 | 27.5 | 26.1 | 9.7 | 11 | 9.7 | 0.8 | 0.9 | 0.9 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Expected return on plan assets | (31.5 | ) | (30.5 | ) | (26.6 | ) | (12.1 | ) | (12.8 | ) | (10.0 | ) | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Net amortizations | 11.8 | 7.2 | 4.6 | (0.1 | ) | (0.7 | ) | (1.0 | ) | — | 0.1 | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Settlement loss | 2 | 2.2 | 0.4 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Curtailment gain | — | — | — | — | (12.9 | ) | (0.2 | ) | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Special termination cost | — | — | — | — | 0.1 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net pension and postretirement expense | $ | 35.3 | $ | 32.6 | $ | 28.5 | $ | (0.6 | ) | $ | (11.3 | ) | $ | 3.7 | $ | 1 | $ | 1.2 | $ | 1.2 | ||||||||||||||||||||||||||||||||||||||||
Weighted‑average discount rate for expense (January 1) | 4.71 | % | 5.12 | % | 5.42 | % | 4.78 | % | 5.36 | % | 5.71 | % | 4.4 | % | 4.9 | % | 5.4 | % | ||||||||||||||||||||||||||||||||||||||||||
Weighted‑average assumed long-term rate of return on assets (January 1) | 8 | % | 8.4 | % | 8.5 | % | 7.44 | % | 7.46 | % | 7.46 | % | N/A | N/A | N/A | |||||||||||||||||||||||||||||||||||||||||||||
Initial health care cost trend rate | N/A | N/A | N/A | N/A | N/A | N/A | 8.1 | % | 8.4 | % | 8.7 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
Ultimate health care cost trend rate | N/A | N/A | N/A | N/A | N/A | N/A | 4.5 | % | 4.5 | % | 4.5 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
Number of years to ultimate trend rate | N/A | N/A | N/A | N/A | N/A | N/A | 17 | 18 | 19 | |||||||||||||||||||||||||||||||||||||||||||||||||||
The balance in “Accumulated other comprehensive loss” at December 31, 2012 and 2011 relating to pension benefits was $109.8 million and $99.6 million, respectively. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changing the assumed health care cost trend rates by one percentage point is estimated to have the following effects (in millions of dollars): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
One Percentage Point | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Increase | Decrease | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effect on total of service and interest cost components | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effect on postretirement benefit obligation | $ | 0.5 | $ | (0.4 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
The provisions charged to income for the years ended December 31, 2012, 2011 and 2010 for all other pension plans were approximately $8.9 million, $8.0 million and $8.8 million, respectively. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The provisions charged to income for the years ended December 31, 2012, 2011 and 2010 for the defined contribution plans were approximately $18.6 million, $18.0 million and $14.8 million, respectively. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Plan Assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
We have a long-term investment outlook for the assets held in our Company sponsored plans, which is consistent with the long-term nature of each plan's respective liabilities. We have two major plans which reside in the U.S. and the U.K. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The U.S. Plan, or the “Plan,” currently has a target asset allocation of 65% equity and 35% fixed income. The equity portion of the Plan is invested in one passively managed S&P 500 index fund, one passively managed U.S. small/midcap fund and one actively managed international portfolio. The fixed income portion of the Plan is actively managed by a professional investment manager and is benchmarked to the Barclays Long Govt/Credit Index. The Plan assumes an 7.6% rate of return on assets, which represents the expected long-term annual weighted‑average return for the Plan in total. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The U.K. Plan currently invests in a professionally managed Balanced Consensus Index Fund, which has the investment objective of achieving a total return relatively equal to its benchmark. The benchmark is based upon the average asset weightings of a broad universe of U.K. pension funds invested in pooled investment vehicles and each of their relevant indices. The asset allocation as of December 31, 2012, was 79% equity, 9% fixed income and 12% cash and cash equivalents. The U.K. Plan currently assumes a rate of return on assets of 7.5%, which represents the expected long-term annual weighted‑average return. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The fair value measurements of our U.S. pension plan assets are based upon significant observable inputs (Level 2) and relate to common collective trusts and other pooled investment vehicles consisting of the following asset categories (in millions of dollars): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset Category | 2012 | 2011 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short Term Investments | $ | 8.3 | $ | 11.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Large Cap | 135.9 | 119.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Mid Cap | 42 | 34.9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Small Cap | 31.6 | 27.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
International Large Cap | 109.3 | 89 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed Income Securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasuries | 67.5 | 53.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate Bonds | 83.8 | 68.7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Government Bonds | 4.4 | 4.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Municipal Bonds | 9.1 | 9.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate (REITs) | 6.5 | 5.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total fair value of pension plan assets | $ | 498.4 | $ | 423.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Our U.K. Plan accounts for most of the $178.3 million in fair value of Non-U.S. plan assets. The fair value measurements of our U.K. pension plan assets are based upon significant observable inputs (Level 2) and relate to common collective trusts and other pooled investment vehicles consisting of the following asset categories (in millions of dollars): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset Category | 2012 | 2011 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short Term Investments | $ | 12.9 | $ | 11.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.K. Equities | 66.1 | 57.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Overseas Equities | 67.1 | 60.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.K. Conventional Gilts | 6.5 | 6.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate Bonds | 5.3 | 5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Global Treasury Bonds | 9.3 | 6.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Index‑Linked Gilts‑Stocks | 1.8 | 1.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total fair value of pension plan assets | $ | 169 | $ | 149.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contributions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Our policy for funded plans is to contribute annually, at a minimum, amounts required by applicable laws, regulations and union agreements. From time to time we make contributions beyond those legally required. In 2012, we made discretionary cash contributions to our U.S. qualified pension plan of $38.4 million. In 2011, we made discretionary cash contributions to our U.S. qualified pension plan of $58.9 million. We expect to contribute between $20.0 million and $30.0 million to our U.S. plan during 2013. The level of 2013 and 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. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Estimated Future Benefit Payments | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The following table presents estimated future benefit payments (in millions of dollars): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension Benefits | Postretirement | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefits (U.S.) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2013 | $ | 31.1 | $ | 1.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 34.4 | 1.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2015 | 40.6 | 1.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2016 | 44.3 | 1.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2017 | 51.1 | 1.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2018-2022 | 314.1 | 6.7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 515.6 | $ | 13.6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Multiemployer Pension Plans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
We contribute to several multiemployer defined benefit pension plans under collective bargaining agreements that cover certain of our 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 we cease to have an obligation to contribute to the multiemployer plan in which we had been a contributing employer, we may be required to pay to the plan an amount based on the underfunded status of the plan and on the history of our participation in the plan prior to the cessation of our 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. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Our participation in multiemployer plans for the annual period ended December 31, 2012 is outlined in the table below. For each plan that is individually significant to us, the following information is provided: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The “EIN / Pension Plan Number” column provides the Employer Identification Number and the three‑digit plan number assigned to a plan by the Internal Revenue Service. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The most recent Pension Protection Act Zone Status available for 2011 and 2012 is for plan years that ended in 2011 and 2012, respectively. The zone status is based on information provided to us 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 2012. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The “Surcharge Imposed” column indicates whether our contribution rate for 2012 included an amount in addition the contribution rate specified in the applicable collective bargaining agreement, as imposed by a plan in “critical status,” in accordance with the requirements of the Code. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The last column lists the expiration dates of the collective bargaining agreements pursuant to which we contribute to the plans. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For plans that are not individually significant to us, the total amount of contributions is presented in the aggregate. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In millions of dollars) | EIN /Pension | Pension | FIP / | Contributions by | Surcharge | Expiration | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Plan | Protection Act | RP Status | The Hertz Corporation | Dates of | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Zone Status | Pending / | Collective | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Bargaining | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension Fund | Number | 2012 | 2011 | Implemented | 2012 | 2011 | 2010 | Imposed | Agreements | |||||||||||||||||||||||||||||||||||||||||||||||||||
Western Conference of Teamsters | 91-6145047 | Green | Green | NA | $ | 4.1 | $ | 3.9 | $ | 3.8 | NA | Various | ||||||||||||||||||||||||||||||||||||||||||||||||
Teamsters Central States | 36-6044243 | Critical | Critical | Implemented | 1.2 | 1.3 | 1.2 | No | Various | |||||||||||||||||||||||||||||||||||||||||||||||||||
IAM National | 51-60321295 | Green | Green | NA | 0.7 | 0.6 | 0.6 | NA | Various | |||||||||||||||||||||||||||||||||||||||||||||||||||
Midwest Operating Engineers | 36-6140097 | Green | Green | NA | 0.5 | 0.4 | 0.2 | NA | 2/28/14 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Local 1034** | 13-6594795 | Critical | Critical | Implemented | 0.2 | 0.2 | 0.2 | Yes | 5/2/13 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Operating Engineers Local 324 | 38-1900637 | Critical | Critical | Implemented | 0.1 | 0.1 | 0.1 | No | 6/30/13 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Western Pennsylvania Teamsters | 25-6029946 | Critical | Critical | Implemented | 0.1 | 0.1 | 0.1 | No | 11/4/11 | * | ||||||||||||||||||||||||||||||||||||||||||||||||||
7 Other Plans | 0.6 | 0.6 | 0.5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Contributions | $ | 7.5 | $ | 7.2 | $ | 6.7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
* The parties are still attempting to negotiate a successor agreement. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
** | The amount contributed by Hertz to the Local 1034 Pension Fund was reported as being more than 5% of total contributions to the plan, on the fund's Form 5500 for the year ended 12/31/2011. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
During 2012, Hertz completely withdrew employees from an existing multi-employer pension plan with the Central States Pension Fund, or the “Pension Fund,” and entered into a new agreement with the Pension Fund, which adopted an alternative method for determining an employer's unfunded obligation that would limit Hertz funding obligations to the Pension Fund in the future. As part of the agreement, certain Pension Fund participants were effectively moved to the Hertz retirement plan and the remaining participants were moved to a new pension plan sponsored by the Pension Fund. In connection with the complete withdrawal from the Pension Fund, Hertz was subject to a withdrawal liability of approximately $23.2 million, which was paid in December 2012. |
StockBased_Compensation
Stock-Based Compensation | 6 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | ||||||||||||||||||||||||||||
Stock-Based Compensation | |||||||||||||||||||||||||||||
Stock-Based Compensation | Stock-Based Compensation | Stock-Based Compensation | |||||||||||||||||||||||||||
In February 2013, Hertz Holdings granted 5,247 Restricted Stock Units, or "RSUs," and 1,707,458 Performance Stock Units, or "PSUs," to certain executives and employees at a grant date fair value of $19.95, under the Hertz Global Holdings, Inc. 2008 Omnibus Incentive Plan, or the "Omnibus Plan." Of the total PSUs awarded 1,136,724 PSUs have a performance condition under which the number of units that will ultimately be awarded will vary from 0% to 150% of the original grant, based on 2013 and combined 2013-2014 Corporate EBITDA results. "EBITDA" means consolidated net income before net interest expense, consolidated income taxes and consolidated depreciation (which includes revenue earning equipment lease charges) and amortization and "Corporate EBITDA," represents EBITDA as adjusted for car rental fleet interest, car rental fleet depreciation and certain other items, as provided in the applicable award agreements. These PSU awards vest evenly over a three year vesting period. Of the total PSUs awarded, 490,632 PSUs have a performance condition under which the number of units that will ultimately be awarded will be 0% to 100% of the original grant. Satisfaction of the performance condition under this grant is contingent upon final 2013 Corporate EBITDA Margin exceeding a minimum level. "Corporate EBITDA Margin" means Corporate EBITDA as a percentage of Consolidated Revenue. These PSU awards vest evenly over a three year vesting period. Of the total PSUs awarded, 83,567 PSUs have a performance condition under which the number of units that will ultimately be awarded will be 0% to 100% of the original grant. Satisfaction of the performance condition under this grant is contingent upon final 2013 Corporate EBITDA Margin exceeding a minimum level. These PSU awards vest evenly over a two year vesting period. The 5,247 RSUs awarded have a two year cliff vesting period. | Plans | ||||||||||||||||||||||||||||
In May 2013, Hertz Holdings granted 166,576 RSUs at a fair value of $23.80. Of the total RSUs awarded, 162,584 vest 33 1/3% annually over three years, and 3,992 RSUs vest after two years. | On February 28, 2008, the Board of Directors of Hertz and Hertz Holdings jointly adopted the Hertz Global Holdings, Inc. 2008 Omnibus Incentive Plan, or the “Omnibus Plan,” which was approved by the stockholders of Hertz Holdings at the annual meeting of stockholders held on May 15, 2008 and amended and restated on May 27, 2010. A maximum of 32.7 million shares are reserved for issuance under the Omnibus Plan. The Omnibus 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 stock, restricted stock units and deferred stock units to key executives, employees and non-management directors. We also granted awards under the Hertz Global Holdings, Inc. Stock Incentive Plan, or the “Stock Incentive Plan,” and the Hertz Global Holdings, Inc. Director Stock Incentive Plan, or the “Director Plan”, or collectively the “Prior Plans.” | ||||||||||||||||||||||||||||
The non-cash stock-based compensation expense associated with the Prior Plans (as defined below) and the Omnibus Plan is pushed down from Hertz Holdings and recorded on the books at the Hertz level. | The Omnibus Plan provides that no further awards will be granted pursuant to the Prior Plans. However, awards that had been previously granted pursuant to the Prior Plans will continue to be subject to and governed by the terms of the Prior Plans. As of December 31, 2012, there were 8.0 million shares of Hertz Holdings' common stock underlying awards outstanding under the Prior Plans. In addition, as of December 31, 2012, there were 9.4 million shares of Hertz Holdings' common stock underlying awards outstanding under the Omnibus Plan. | ||||||||||||||||||||||||||||
A summary of the total compensation expense and associated income tax benefits recognized under our Hertz Global Holdings, Inc. Stock Incentive Plan and Hertz Global Holdings, Inc. Director Stock Incentive Plan, or the "Prior Plans," and the Omnibus Plan, including the cost of stock options, RSUs, and PSUs, is as follows (in millions of dollars): | In addition to the 17.4 million shares underlying outstanding awards as of December 31, 2012, we had 16.9 million shares of Hertz Holdings' common stock available for issuance under the Omnibus Plan. The shares of common stock to be delivered under the Omnibus Plan may consist, in whole or in part, of common stock held in treasury or authorized but unissued shares of common stock, not reserved for any other purpose. | ||||||||||||||||||||||||||||
Shares subject to any award granted under the Omnibus Plan that for any reason are canceled, terminated, forfeited, settled in cash or otherwise settled without the issuance of common stock after the effective date of the Omnibus Plan will generally be available for future grants under the Omnibus Plan. | |||||||||||||||||||||||||||||
In March 2012, Hertz Holdings granted 543,880 Restricted Stock Units, or "RSUs," to certain executives and employees at fair values ranging from $13.65 to $14.47, 747,423 Performance Stock Units, or "PSUs," at a fair value of $13.65, and 1,098,591 PSUs (referred to as Price Vesting Units, or "PVUs") at fair values ranging from $10.13 to $11.26 under the Omnibus Plan. The PSUs have a performance condition under which the number of units that will ultimately be awarded will vary from 0% to 150% of the original grant, based on 2012 and 2013 Hertz Holdings' Corporate EBITDA results. "EBITDA" means consolidated net income before net interest expense, consolidated income taxes and consolidated depreciation (which includes revenue earning equipment lease charges) and amortization. "Corporate EBITDA," represents EBITDA as adjusted for car rental fleet interest, car rental fleet depreciation and certain other items, as provided in the applicable award agreements. Of the PVUs granted, one half will fully vest after three years if Hertz Holdings' stock price appreciates 15% over the starting price established on March 2, 2012, and one half will fully vest after four years if Hertz Holdings' stock price appreciates 25% over the starting price established on March 2, 2012. The starting price for the PVU awards is the average of the 20 trading day closing stock price ending March 2, 2012. Partial attainment of Hertz Holdings' stock appreciation targets will result in partial vesting. The achievement of the market condition for the PVUs is determined based on the average closing stock price for the 20 trading day period ending March 6, 2015 and 2016, respectively. In May 2012, Hertz Holdings granted 146,301 RSUs at a fair value of $15.48, in August 2012, Hertz Holdings granted 59,480 RSUs at a fair value of $12.12, and in November 2012, we granted 24,713 RSUs at a fair value of $13.15. In November 2012, we granted 35,492 non-qualified options with a strike price of $0.17 in exchange for 6,000 Dollar Thrifty options with a strike price of $0.97. | |||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | The non-cash stock-based compensation expense associated with the Prior Plans (as defined below) and the Omnibus Plan is pushed down from Hertz Holdings and recorded on the books at the Hertz level. | |||||||||||||||||||||||||||
June 30, | June 30, | A summary of the total compensation expense and associated income tax benefits recognized under the Prior Plans and the Omnibus Plan, including the cost of stock options, RSUs, and PSUs, is as follows (in millions of dollars): | |||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||
Compensation expense | $ | 11.7 | $ | 7.5 | $ | 19.7 | $ | 15 | |||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||||||
Income tax benefit | (4.5 | ) | (2.9 | ) | (7.6 | ) | (5.8 | ) | 2012 | 2011 | 2010 | ||||||||||||||||||
Total | $ | 7.2 | $ | 4.6 | $ | 12.1 | $ | 9.2 | Compensation expense | $ | 30.3 | $ | 31 | $ | 36.6 | ||||||||||||||
As of June 30, 2013, there was approximately $55.4 million of total unrecognized compensation cost related to non-vested stock options, RSUs and PSUs granted by Hertz Holdings under the Prior Plans and the Omnibus Plan. The total unrecognized compensation cost is expected to be recognized over the remaining 1.7 years, on a weighted average basis, of the requisite service period that began on the grant dates. | Income tax benefit | (11.7 | ) | (12.0 | ) | (14.2 | ) | ||||||||||||||||||||||
Total | $ | 18.6 | $ | 19 | $ | 22.4 | |||||||||||||||||||||||
As of December 31, 2012, there was approximately $38.0 million of total unrecognized compensation cost related to non-vested stock options, RSUs and PSUs granted by Hertz Holdings under the Prior Plans and the Omnibus Plan. The total unrecognized compensation cost is expected to be recognized over the remaining 1.4 years, on a weighted average basis, of the requisite service period that began on the grant dates. | |||||||||||||||||||||||||||||
Stock Options and Stock Appreciation Rights | |||||||||||||||||||||||||||||
All stock options and stock appreciation rights granted under the Omnibus Plan will have a per-share exercise price of not less than the fair market value of one share of Hertz Holdings common stock on the grant date. Stock options and stock appreciation rights 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 of our Board of Directors. No stock options or stock appreciation rights will be exercisable after ten years from the grant date. | |||||||||||||||||||||||||||||
We have accounted for our employee stock‑based compensation awards in accordance with ASC 718, “Compensation-Stock Compensation.” The non-cash stock based compensation expense associated with the Stock Incentive Plan is pushed down from Hertz Holdings and recorded on the books at the Hertz level. The options are being accounted for as equity‑classified awards. We will recognize compensation cost on a straight-line basis over the vesting period. The value of each option award is estimated on the grant date using a Black‑Scholes option valuation model that incorporates the assumptions noted in the following table. Because the stock of Hertz Holdings became publicly traded in November 2006 and had a short trading history, it was not practicable for us to estimate the expected volatility of Hertz Holdings' share price, or a peer company share price, because there was insufficient historical information about past volatility prior to 2012. Therefore, prior to 2012 we used the calculated value method, substituting the historical volatility of an appropriate industry sector index for the expected volatility of Hertz Holdings' common stock price as an assumption in the valuation model. We selected the Dow Jones Specialized Consumer Services sub-sector within the consumer services industry, and we used the U.S. large capitalization component, which includes the top 70% of the index universe (by market value). | |||||||||||||||||||||||||||||
The calculation of the historical volatility of the index was made using the daily historical closing values of the index for the preceding 6.25 years, because that is the expected term of the options using the simplified approach. | |||||||||||||||||||||||||||||
For 2012, we have determined that there was sufficient historical information available to estimate the expected volatility of our share price. Therefore, for 2012 we calculated volatility for Hertz Holdings' stock price based on a weighted average combining implied volatility and the average of our peer’s most recent 5.79-year volatility and mean reversion volatility. | |||||||||||||||||||||||||||||
The risk-free interest rate is the implied zero-coupon yield for U.S. Treasury securities having a maturity approximately equal to the expected term, as of the grant dates. The assumed dividend yield is zero. | |||||||||||||||||||||||||||||
Assumption | 2012 Grants | 2011 Grants | 2010 Grants | ||||||||||||||||||||||||||
Expected volatility | 81.5 | % | 36.7 | % | 36.1 | % | |||||||||||||||||||||||
Expected dividend yield | — | % | — | % | — | % | |||||||||||||||||||||||
Expected term (years) | 3 | 6.25 | 6.25 | ||||||||||||||||||||||||||
Risk-free interest rate | 0.4 | % | 2.56 | % | 1.62%-2.96% | ||||||||||||||||||||||||
Weighted‑average grant date fair value | $ | 14.62 | $ | 5.93 | $ | 4 | |||||||||||||||||||||||
A summary of option activity under the Stock Incentive Plan and the Omnibus Plan as of December 31, 2012 is presented below. | |||||||||||||||||||||||||||||
Options | Shares | Weighted‑ | Weighted‑ | Aggregate Intrinsic | |||||||||||||||||||||||||
Average | Average | Value (In thousands | |||||||||||||||||||||||||||
Exercise | Remaining | of dollars) | |||||||||||||||||||||||||||
Price | Contractual | ||||||||||||||||||||||||||||
Term (years) | |||||||||||||||||||||||||||||
Outstanding at January 1, 2012 | 15,142,061 | $ | 10.6 | 6.3 | $ | 41,110 | |||||||||||||||||||||||
Granted | 35,492 | 0.17 | |||||||||||||||||||||||||||
Exercised | (1,740,447 | ) | 5.75 | ||||||||||||||||||||||||||
Forfeited or Expired | (248,431 | ) | 14.66 | ||||||||||||||||||||||||||
Outstanding at December 31, 2012 | 13,188,675 | 11.13 | 5.4 | $ | 74,681 | ||||||||||||||||||||||||
Exercisable at December 31, 2012 | 10,321,945 | 10.83 | 4.7 | $ | 63,086 | ||||||||||||||||||||||||
A summary of non-vested options as of December 31, 2012, and changes during the year, is presented below. | |||||||||||||||||||||||||||||
Non-vested | Weighted‑ | Weighted‑ | |||||||||||||||||||||||||||
Shares | Average | Average Grant- | |||||||||||||||||||||||||||
Exercise Price | Date Fair | ||||||||||||||||||||||||||||
Value | |||||||||||||||||||||||||||||
Non-vested as of January 1, 2012 | 4,915,825 | $ | 12.04 | $ | 4.86 | ||||||||||||||||||||||||
Granted | 35,492 | 0.17 | 0.17 | ||||||||||||||||||||||||||
Vested | (1,959,032 | ) | 11.56 | 4.59 | |||||||||||||||||||||||||
Forfeited | (125,555 | ) | 11.91 | 4.84 | |||||||||||||||||||||||||
Non-vested as of December 31, 2012 | 2,866,730 | $ | 12.23 | $ | 4.98 | ||||||||||||||||||||||||
Additional information pertaining to option activity under the plans is as follows (in millions of dollars): | |||||||||||||||||||||||||||||
Years ended | |||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||
2012 | 2011 | 2010 | |||||||||||||||||||||||||||
Aggregate intrinsic value of stock options exercised | $ | 15.1 | $ | 15 | $ | 8.1 | |||||||||||||||||||||||
Cash received from the exercise of stock options | 11.2 | 13.1 | 7.9 | ||||||||||||||||||||||||||
Fair value of options that vested | 9 | 17.4 | 21.6 | ||||||||||||||||||||||||||
Tax benefit realized on exercise of stock options | 0.9 | 0.5 | 0.3 | ||||||||||||||||||||||||||
Performance Stock, Performance Stock Units, Restricted Stock and Restricted Stock Units | |||||||||||||||||||||||||||||
Performance stock, PSUs and performance units granted under the Omnibus Plan will vest based on the achievement of pre-determined performance goals over performance periods determined by the Compensation, Nominating and Governance Committee of the Board of Directors of Hertz Holdings. Each of the units granted under the Omnibus Plan represent the right to receive one share of Hertz Holdings' 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 performance stock, performance stock units and performance units will vest to the extent performance goals are achieved at the end of the performance period. Restricted Stock and 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, Nominating and Governance Committee of the Board of Directors of Hertz Holdings. | |||||||||||||||||||||||||||||
A summary of RSU and PSU activity under the Omnibus Plan as of December 31, 2012 is presented below. | |||||||||||||||||||||||||||||
Shares | Weighted‑ | Aggregate Intrinsic | |||||||||||||||||||||||||||
Average | Value (In thousands | ||||||||||||||||||||||||||||
Fair Value | of dollars) | ||||||||||||||||||||||||||||
Outstanding at January 1, 2012 | 4,327,461 | $ | 6.46 | $ | 50,718 | ||||||||||||||||||||||||
Granted | 869,894 | 13.78 | — | ||||||||||||||||||||||||||
Vested | (3,198,219 | ) | 4.58 | — | |||||||||||||||||||||||||
Forfeited or Expired | (126,502 | ) | 13.19 | — | |||||||||||||||||||||||||
Outstanding at December 31, 2012 | 1,872,634 | $ | 12.62 | $ | 30,468 | ||||||||||||||||||||||||
Additional information pertaining to RSU and PSU activity is as follows: | |||||||||||||||||||||||||||||
Years ended December 31, | |||||||||||||||||||||||||||||
2012 | 2011 | 2010 | |||||||||||||||||||||||||||
Total fair value of awards that vested ($ millions) | $ | 14.6 | $ | 9.6 | $ | 8.2 | |||||||||||||||||||||||
Weighted average grant date fair value of awards | $ | 13.78 | $ | 14.78 | $ | 10.1 | |||||||||||||||||||||||
Compensation expense for RSUs and PSUs is based on the grant date fair value, and is recognized ratably over the vesting period. For grants in 2010, 2011 and 2012, the vesting period is three years (for grants in 2010 and 2011, 25% in the first year, 25% in the second year and 50% in the third year and for grants in 2012, 33 1/3% per year). In addition to the service vesting condition, the PSUs had an additional vesting condition which called for the number of units that will be awarded being based on achievement of a certain level of Corporate EBITDA over the applicable measurement period. | |||||||||||||||||||||||||||||
In March 2012, Hertz Holdings granted 1,846,014 PSUs that had a performance vesting condition under which the number of units that will ultimately be awarded will vary from 0% to 150% of the original grant, based on the sum of 2012 and 2013 Corporate EBITDA results, in addition to a service vesting condition. In March 2011 Hertz Holdings' granted 499,515 PSUs that had a performance vesting condition under which the number of units that will ultimately be awarded will vary from 0% to 150% of the original grant, based on the sum of 2011 and 2012 Corporate EBITDA results, in addition to a service vesting condition. An additional 193,798 PSUs granted in March 2011 contained a market condition whereby the 20 trading day average trailing Hertz Holdings' stock price must equal or exceed a certain price target at any time during the five year performance period, in addition to a service vesting condition. A summary of the PSU activity for this grant is presented below. | |||||||||||||||||||||||||||||
Shares | Weighted‑ | Aggregate Intrinsic | |||||||||||||||||||||||||||
Average | Value (In thousands | ||||||||||||||||||||||||||||
Fair Value | of dollars) | ||||||||||||||||||||||||||||
Outstanding at January 1, 2012 | 677,971 | $ | 13.34 | $ | 7,946 | ||||||||||||||||||||||||
Granted | 1,846,014 | 11.89 | — | ||||||||||||||||||||||||||
Vested | (124,874 | ) | 14.6 | — | |||||||||||||||||||||||||
Forfeited or Expired | (100,438 | ) | 11.87 | — | |||||||||||||||||||||||||
Outstanding at December 31, 2012 | 2,298,673 | $ | 12.18 | $ | 37,399 | ||||||||||||||||||||||||
Employee Stock Purchase Plan | |||||||||||||||||||||||||||||
On February 28, 2008, upon recommendation of the compensation committee of the Board of Directors, or “Committee,” of Hertz Holdings, Hertz Holdings' Board of Directors adopted the Hertz Global Holdings, Inc. Employee Stock Purchase Plan, or the “ESPP,” and the plan was approved by the stockholders of Hertz Holdings on May 15, 2008. The ESPP is intended to be an “employee stock purchase plan” within the meaning of Section 423 of the Internal Revenue Code. | |||||||||||||||||||||||||||||
The maximum number of shares that may be purchased under the ESPP is 3,000,000 shares of Hertz Holdings' common stock, subject to adjustment in the case of any change in Hertz Holdings' shares, including by reason of a stock dividend, stock split, share combination, recapitalization, reorganization, merger, consolidation or change in corporate structure. An eligible employee may elect to participate in the ESPP each quarter (or other period established by the Committee) through a payroll deduction. The maximum and minimum contributions that an eligible employee may make under all of Hertz Holdings' qualified employee stock purchase plans will be determined by the Committee, provided that no employee may be permitted to purchase stock with an aggregate fair market value greater than $25,000 per year. At the end of the offering period, the total amount of each employee's payroll deduction will be used to purchase shares of Hertz Holdings' common stock. The purchase price per share will be not less than 85% of the market price of Hertz Holdings' common stock on the date of purchase; the exact percentage for each offering period will be set in advance by the Committee. | |||||||||||||||||||||||||||||
For the years ended December 31, 2012, 2011 and 2010, we recognized compensation cost of approximately $0.8 million, $0.7 million and $0.6 million, respectively, for the amount of the discount on the stock purchased by our employees under the ESPP. Approximately 1,800 employees participated in the ESPP as of December 31, 2012. |
Segment_Information
Segment Information | 6 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | |||||||||||||||||||||||||||
Segment Information | ||||||||||||||||||||||||||||
Segment Information | Segment Information | Segment Information | ||||||||||||||||||||||||||
Our operating segments are aggregated into reportable business segments based primarily upon similar economic characteristics, products, services, customers, and delivery methods. We have identified two reportable segments: rental and leasing of cars, crossovers and light trucks, or "car rental," and rental of industrial, construction, material handling and other equipment, or "equipment rental." Other reconciling items include general corporate assets and expenses, certain interest expense (including net interest on corporate debt), as well as other business activities. Donlen is included in the car rental reportable segment. | Our operating segments are aggregated into reportable business segments based primarily upon similar economic characteristics, products, services, customers, and delivery methods. We have identified two reportable segments: rental and leasing of cars, crossovers and light trucks, or “car rental,” and rental of industrial, construction and material handling equipment, or “equipment rental.” Other reconciling items includes general corporate assets and expenses, certain interest expense (including net interest on corporate debt), as well as other business activities, such as our third party claim management services. | |||||||||||||||||||||||||||
Adjusted pre-tax income is calculated as income before income taxes plus non-cash purchase accounting charges, non-cash debt charges relating to the amortization and write-off of debt financing costs and debt discounts and certain one-time charges and non-operational items. Adjusted pre-tax income is important to management because it allows management to assess operational performance of our business, exclusive of the items mentioned above. It also allows management to assess the performance of the entire business on the same basis as the segment measure of profitability. Management believes that it is important to investors for the same reasons it is important to management and because it allows them to assess our operational performance on the same basis that management uses internally. The contribution of our reportable segments to revenues and adjusted pre-tax income and the reconciliation to consolidated amounts are summarized below (in millions of dollars). | Adjusted pre-tax income (loss) is the measure utilized by management in making decisions about allocating resources to segments and measuring their performance. We believe this measure best reflects the financial results from ongoing operations. Adjusted pre-tax income (loss) is calculated as income (loss) before income taxes plus other reconciling items, non-cash purchase accounting charges, non-cash debt charges and certain one-time charges and non-operational items. The contribution of our reportable segments for the years ended December 31, 2012, 2011 and 2010 is summarized below (in millions of dollars). | |||||||||||||||||||||||||||
Three Months Ended June 30, | Years ended December 31, | |||||||||||||||||||||||||||
Revenues | Adjusted Pre-Tax Income | 2012 | 2011 | 2010 | ||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | Revenues | ||||||||||||||||||||||||
Car rental | $ | 2,329.50 | $ | 1,889.60 | $ | 363 | $ | 277.4 | Car rental | $ | 7,633.00 | $ | 7,083.50 | $ | 6,486.20 | |||||||||||||
Equipment rental | 384.3 | 335 | 74.1 | 42.5 | Equipment rental | 1,385.40 | 1,209.50 | 1,070.10 | ||||||||||||||||||||
Total reportable segments | 2,713.80 | 2,224.60 | 437.1 | 319.9 | Other reconciling items | 2.4 | 5.4 | 6.2 | ||||||||||||||||||||
Other | 0.8 | 0.5 | Total | $ | 9,020.80 | $ | 8,298.40 | $ | 7,562.50 | |||||||||||||||||||
Total | $ | 2,714.60 | $ | 2,225.10 | Adjusted pre-tax income(a) | |||||||||||||||||||||||
Car rental | $ | 1,020.10 | $ | 850.2 | $ | 641.9 | ||||||||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||||
Other reconciling items(1) | (116.2 | ) | (79.8 | ) | Equipment rental | $ | 227 | $ | 161.6 | $ | 78 | |||||||||||||||||
Purchase accounting(2) | (33.1 | ) | (29.0 | ) | Depreciation of revenue earning equipment and lease charges | |||||||||||||||||||||||
Car rental | $ | 1,876.10 | $ | 1,651.40 | $ | 1,594.60 | ||||||||||||||||||||||
Non-cash debt charges(3) | (12.1 | ) | (13.9 | ) | ||||||||||||||||||||||||
Equipment rental | 272.1 | 254.3 | 273.5 | |||||||||||||||||||||||||
Restructuring charges | (17.6 | ) | (16.1 | ) | ||||||||||||||||||||||||
Total | $ | 2,148.20 | $ | 1,905.70 | $ | 1,868.10 | ||||||||||||||||||||||
Restructuring related charges(4) | (8.6 | ) | (5.0 | ) | ||||||||||||||||||||||||
Depreciation of property and equipment | ||||||||||||||||||||||||||||
Integration expenses(5) | (9.2 | ) | — | Car rental | $ | 126.9 | $ | 116.1 | $ | 112.3 | ||||||||||||||||||
Derivative gains (losses)(6) | (0.1 | ) | — | Equipment rental | 34.1 | 33.7 | 34.3 | |||||||||||||||||||||
Acquisition related costs | (9.1 | ) | (4.5 | ) | Other reconciling items | 11.6 | 8.2 | 7.4 | ||||||||||||||||||||
Other(7) | (5.4 | ) | — | Total | $ | 172.6 | $ | 158 | $ | 154 | ||||||||||||||||||
Income before income taxes | $ | 225.7 | $ | 171.6 | Amortization of other intangible assets | |||||||||||||||||||||||
Car rental | $ | 41.7 | $ | 32.7 | $ | 30.2 | ||||||||||||||||||||||
Equipment rental | 40.6 | 35.8 | 33.4 | |||||||||||||||||||||||||
Six Months Ended June 30, | Other reconciling items | 1.8 | 1.5 | 1.1 | ||||||||||||||||||||||||
Revenues | Adjusted Pre-Tax Income | |||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | Total | $ | 84.1 | $ | 70 | $ | 64.7 | ||||||||||||||||||
Car rental | $ | 4,414.30 | $ | 3,547.90 | $ | 571.4 | $ | 369 | ||||||||||||||||||||
Interest expense | ||||||||||||||||||||||||||||
Equipment rental | 735.4 | 637.1 | 119.9 | 68.4 | Car rental | $ | 316.3 | $ | 333.1 | $ | 401.3 | |||||||||||||||||
Total reportable segments | 5,149.70 | 4,185.00 | 691.3 | 437.4 | Equipment rental | 52 | 45.3 | 39.4 | ||||||||||||||||||||
Other | 1.5 | 1.1 | Other reconciling items | 229.5 | 271.9 | 285.8 | ||||||||||||||||||||||
Total | $ | 5,151.20 | $ | 4,186.10 | Total | $ | 597.8 | $ | 650.3 | $ | 726.5 | |||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||||
Other reconciling items(1) | (219.5 | ) | (161.7 | ) | ||||||||||||||||||||||||
Purchase accounting(2) | (66.8 | ) | (53.0 | ) | ||||||||||||||||||||||||
Years ended December 31, | ||||||||||||||||||||||||||||
Non-cash debt charges(3) | (22.1 | ) | (32.6 | ) | 2012 | 2011 | 2010 | |||||||||||||||||||||
Revenue earning equipment and property and equipment | ||||||||||||||||||||||||||||
Restructuring charges | (21.3 | ) | (22.8 | ) | Car rental | |||||||||||||||||||||||
Expenditures | $ | 9,118.30 | $ | 9,109.90 | $ | 8,430.10 | ||||||||||||||||||||||
Restructuring related charges(4) | (12.8 | ) | (8.3 | ) | ||||||||||||||||||||||||
Proceeds from disposals | (7,054.4 | ) | (7,689.4 | ) | (7,432.7 | ) | ||||||||||||||||||||||
Integration expenses(5) | (20.0 | ) | — | Net expenditures | $ | 2,063.90 | $ | 1,420.50 | $ | 997.4 | ||||||||||||||||||
Acquisition related costs | (11.7 | ) | (11.4 | ) | Equipment rental | |||||||||||||||||||||||
Expenditures | $ | 787.6 | $ | 617.5 | $ | 186.1 | ||||||||||||||||||||||
Other(7) | (5.4 | ) | — | |||||||||||||||||||||||||
Proceeds from disposals | (192.3 | ) | (213.8 | ) | (124.3 | ) | ||||||||||||||||||||||
Income before income taxes | $ | 311.7 | $ | 147.6 | Net expenditures (proceeds) | $ | 595.3 | $ | 403.7 | $ | 61.8 | |||||||||||||||||
_______________________________________________________________________________ | Other reconciling items | |||||||||||||||||||||||||||
Expenditures | $ | 20.1 | $ | 8.6 | $ | 3.9 | ||||||||||||||||||||||
-1 | Represents general corporate expenses, certain interest expense (including net interest on corporate debt), as well as other business activities. | |||||||||||||||||||||||||||
Proceeds from disposals | (16.1 | ) | (1.0 | ) | (0.3 | ) | ||||||||||||||||||||||
-2 | Represents the purchase accounting effects of the 2005 sale of all of Hertz's stock on our results of operations relating to increased depreciation and amortization of tangible and intangible assets and accretion of revalued workers' compensation and public liability and property damage liabilities. Also represents the purchase accounting effects of certain subsequent acquisitions on our results of operations relating to increased depreciation and amortization of tangible and intangible assets. | Net expenditures | $ | 4 | $ | 7.6 | $ | 3.6 | ||||||||||||||||||||
-3 | Represents non-cash debt charges relating to the amortization and write-off of deferred debt financing costs and debt discounts. | |||||||||||||||||||||||||||
-4 | Represents incremental costs incurred directly supporting our business transformation initiatives. Such costs include transition costs incurred in connection with our business process outsourcing arrangements and incremental costs incurred to facilitate business process re-engineering initiatives that involve significant organization redesign and extensive operational process changes. | As of December 31, | ||||||||||||||||||||||||||
2012 | 2011 | |||||||||||||||||||||||||||
-5 | Primarily represents Dollar Thrifty related expenses and adjustments. | Total assets at end of year | ||||||||||||||||||||||||||
Car rental | $ | 18,454.20 | $ | 13,037.90 | ||||||||||||||||||||||||
-6 | Represents the mark-to-market adjustment on our interest rate caps. | |||||||||||||||||||||||||||
Equipment rental | 3,623.00 | 3,058.90 | ||||||||||||||||||||||||||
-7 | Primarily represents expenses related to litigation accruals. | |||||||||||||||||||||||||||
Total assets increased $2,640.8 million from December 31, 2012 to June 30, 2013. The increase was primarily related to an increase in our car rental and equipment rental segments' revenue earning equipment, driven by increased volumes, partly offset by a decrease in fleet receivables within our car rental segment, primarily related to the timing of purchases and sales of revenue earning equipment. | Other reconciling items | 1,213.00 | 1,570.50 | |||||||||||||||||||||||||
Total | $ | 23,290.20 | $ | 17,667.30 | ||||||||||||||||||||||||
Revenue earning equipment, net, at end of year | ||||||||||||||||||||||||||||
Car rental | $ | 10,710.10 | $ | 8,318.70 | ||||||||||||||||||||||||
Equipment rental | 2,198.20 | 1,786.70 | ||||||||||||||||||||||||||
Total | $ | 12,908.30 | $ | 10,105.40 | ||||||||||||||||||||||||
Property and equipment, net, at end of year | ||||||||||||||||||||||||||||
Car rental | $ | 1,111.30 | $ | 971.3 | ||||||||||||||||||||||||
Equipment rental | 235.9 | 203.7 | ||||||||||||||||||||||||||
Other reconciling items | 89.2 | 76.9 | ||||||||||||||||||||||||||
Total | $ | 1,436.40 | $ | 1,251.90 | ||||||||||||||||||||||||
We operate in the United States and in international countries. International operations are substantially in Europe. The operations within major geographic areas are summarized below (in millions of dollars): | ||||||||||||||||||||||||||||
Years ended December 31, | ||||||||||||||||||||||||||||
2012 | 2011 | 2010 | ||||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||
United States | $ | 6,313.40 | $ | 5,413.30 | $ | 4,993.70 | ||||||||||||||||||||||
International | 2,707.40 | 2,885.10 | 2,568.80 | |||||||||||||||||||||||||
Total | $ | 9,020.80 | $ | 8,298.40 | $ | 7,562.50 | ||||||||||||||||||||||
As of December 31, | ||||||||||||||||||||||||||||
2012 | 2011 | |||||||||||||||||||||||||||
Total assets at end of year | ||||||||||||||||||||||||||||
United States | $ | 18,140.90 | $ | 12,724.40 | ||||||||||||||||||||||||
International | 5,149.30 | 4,942.90 | ||||||||||||||||||||||||||
Total | $ | 23,290.20 | $ | 17,667.30 | ||||||||||||||||||||||||
Revenue earning equipment, net, at end of year | ||||||||||||||||||||||||||||
United States | $ | 10,221.30 | $ | 7,621.20 | ||||||||||||||||||||||||
International | 2,687.00 | 2,484.20 | ||||||||||||||||||||||||||
Total | $ | 12,908.30 | $ | 10,105.40 | ||||||||||||||||||||||||
Property and equipment, net, at end of year | ||||||||||||||||||||||||||||
United States | $ | 1,226.10 | $ | 1,036.70 | ||||||||||||||||||||||||
International | 210.3 | 215.2 | ||||||||||||||||||||||||||
Total | $ | 1,436.40 | $ | 1,251.90 | ||||||||||||||||||||||||
(a) | The following table reconciles adjusted pre-tax income to income (loss) before income taxes for the years ended December 31, 2012, 2011 and 2010 (in millions of dollars): | |||||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||||||
Adjusted pre-tax income | 2012 | 2011 | 2010 | |||||||||||||||||||||||||
Car rental | $ | 1,020.10 | $ | 850.2 | $ | 641.9 | ||||||||||||||||||||||
Equipment rental | 227 | 161.6 | 78 | |||||||||||||||||||||||||
Total reportable segments | 1,247.10 | 1,011.80 | 719.9 | |||||||||||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||||
Other reconciling items(1) | (320.5 | ) | (306.2 | ) | (347.9 | ) | ||||||||||||||||||||||
Purchase accounting(2) | (109.6 | ) | (87.6 | ) | (90.3 | ) | ||||||||||||||||||||||
Non-cash debt charges(3) | (56.4 | ) | (105.9 | ) | (160.6 | ) | ||||||||||||||||||||||
Restructuring charges | (38.0 | ) | (56.4 | ) | (54.7 | ) | ||||||||||||||||||||||
Restructuring related charges(4) | (11.1 | ) | (9.8 | ) | (13.2 | ) | ||||||||||||||||||||||
Derivative gains (losses)(5) | (0.9 | ) | 0.1 | (3.2 | ) | |||||||||||||||||||||||
Acquisition related costs and charges(6) | (163.7 | ) | (18.8 | ) | (17.7 | ) | ||||||||||||||||||||||
Management transition costs | — | (4.0 | ) | — | ||||||||||||||||||||||||
Pension adjustment(7) | — | 13.1 | — | |||||||||||||||||||||||||
Premiums paid on debt(8) | — | (62.4 | ) | — | ||||||||||||||||||||||||
Other(9) | (44.0 | ) | — | — | ||||||||||||||||||||||||
Income before income taxes | $ | 502.9 | $ | 373.9 | $ | 32.3 | ||||||||||||||||||||||
_______________________________________________________________________________ | ||||||||||||||||||||||||||||
-1 | Represents general corporate expenses, certain interest expense (including net interest on corporate debt), as well as other business activities. | |||||||||||||||||||||||||||
-2 | Represents the increase in amortization of other intangible assets, depreciation of property and equipment and accretion of revalued liabilities relating to purchase accounting. | |||||||||||||||||||||||||||
-3 | Represents non-cash debt charges relating to the amortization and write-off of deferred debt financing costs and debt discounts. | |||||||||||||||||||||||||||
-4 | Represents incremental costs incurred directly supporting our business transformation initiatives. Such costs include transition costs incurred in connection with our business process outsourcing arrangements and incremental costs incurred to facilitate business process re-engineering initiatives that involve significant organization redesign and extensive operational process changes. | |||||||||||||||||||||||||||
-5 | Represents the mark-to-market adjustment on our interest rate cap. | |||||||||||||||||||||||||||
-6 | Primarily represents Dollar Thrifty acquisition related expenses, change in control expenses, 'Day-1' compensation expenses and other adjustments related to the Dollar Thrifty acquisition, loss on the Advantage divestiture, expenses related to additional required divestitures and costs associated with the Dollar Thrifty acquisition, pre-acquisition interest and commitment fee expenses for interim financing associated with the Dollar Thrifty acquisition and a gain on the investment in Dollar Thrifty stock. | |||||||||||||||||||||||||||
-7 | Represents a gain for the U.K. pension plan relating to unamortized prior service cost from a 2010 amendment that eliminated discretionary pension increases related to pre-1997 service primarily pertaining to inactive employees. | |||||||||||||||||||||||||||
-8 | Represents premiums paid to redeem our 10.5% Senior Subordinated Notes and a portion of our 8.875% Senior Notes. | |||||||||||||||||||||||||||
-9 | Primarily represents expenses related to the withdrawal from a multiemployer pension plan, litigation accrual and expenses associated with the impact of Hurricane Sandy. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Loss | 6 Months Ended | |||||||||||||||||||||||
Jun. 30, 2013 | ||||||||||||||||||||||||
STOCKHOLDERS' EQUITY | ||||||||||||||||||||||||
Other Comprehensive Income | Accumulated Other Comprehensive Loss | |||||||||||||||||||||||
Changes in the accumulated other comprehensive loss balance by component (net of tax) were as follows (in millions of dollars): | ||||||||||||||||||||||||
Pension and Other Post-Employment Benefits | Foreign Currency Items | Unrealized Losses on Terminated Net Investment Hedges | Unrealized Gains on Available for Sale Securities | Other | Accumulated Other Comprehensive Loss | |||||||||||||||||||
Balance at January 1, 2013 | $ | (109.8 | ) | $ | 102.7 | $ | (19.4 | ) | $ | — | $ | (0.4 | ) | $ | (26.9 | ) | ||||||||
Other comprehensive income (loss) before reclassification | 0.3 | (55.5 | ) | — | 2.1 | 0.1 | (53.0 | ) | ||||||||||||||||
Amounts reclassified from accumulated other comprehensive income | 5.1 | 1.5 | — | — | — | 6.6 | ||||||||||||||||||
Net current period other comprehensive income (loss) | 5.4 | (54.0 | ) | — | 2.1 | 0.1 | (46.4 | ) | ||||||||||||||||
Balance at June 30, 2013 | $ | (104.4 | ) | $ | 48.7 | $ | (19.4 | ) | $ | 2.1 | $ | (0.3 | ) | $ | (73.3 | ) | ||||||||
Pension and Other Post-Employment Benefits | Foreign Currency Items | Unrealized Losses on Terminated Net Investment Hedges | Unrealized Gains on Available for Sale Securities | Other | Accumulated Other Comprehensive Loss | |||||||||||||||||||
Balance at January 1, 2012 | $ | (99.6 | ) | $ | 91.3 | $ | (19.4 | ) | $ | 0.3 | $ | (1.0 | ) | $ | (28.4 | ) | ||||||||
Other comprehensive income (loss) before reclassification | — | (16.5 | ) | — | 3.1 | 0.1 | (13.3 | ) | ||||||||||||||||
Amounts reclassified from accumulated other comprehensive income | 3.7 | — | — | — | — | 3.7 | ||||||||||||||||||
Net current period Other comprehensive income (loss) | 3.7 | (16.5 | ) | — | 3.1 | 0.1 | (9.6 | ) | ||||||||||||||||
Balance at June 30, 2012 | $ | (95.9 | ) | $ | 74.8 | $ | (19.4 | ) | $ | 3.4 | $ | (0.9 | ) | $ | (38.0 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive income (loss) to earnings during the three-month and six-month periods ended June 30, 2013 and 2012 were as follows (in millions of dollars): | ||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | Statement of Operations Captions | ||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Pension and other postretirement benefit plans | ||||||||||||||||||||||||
Amortization of actuarial losses(1) | $ | 4 | $ | 3.2 | $ | 8.3 | $ | 6 | Selling, general and administrative | |||||||||||||||
Tax provision | (1.5 | ) | (1.2 | ) | (3.2 | ) | (2.3 | ) | ||||||||||||||||
Net of tax | $ | 2.5 | $ | 2 | $ | 5.1 | $ | 3.7 | ||||||||||||||||
Foreign Currency Items(2) | $ | 1.5 | $ | — | $ | 1.5 | $ | — | Other Income | |||||||||||||||
Total reclassifications for the period | $ | 4 | $ | 2 | $ | 6.6 | $ | 3.7 | ||||||||||||||||
-1 | Included in the computation of net periodic pension / postretirement expenses (see Note 9—Employee Retirement Benefits). | |||||||||||||||||||||||
-2 | Tax amounts are included in "Provision for taxes on income" in the consolidation statements of operations. |
Restructuring
Restructuring | 6 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | |||||||||||||||||||||||||||||||||||||||
Restructuring | ||||||||||||||||||||||||||||||||||||||||
Restructuring | Restructuring | Restructuring | ||||||||||||||||||||||||||||||||||||||
As part of our ongoing effort to implement our strategy of reducing operating costs, we have evaluated our workforce and operations and made adjustments, including headcount reductions and business process reengineering resulting in optimized work flow at rental locations and maintenance facilities as well as streamlined our back-office operations and evaluated potential outsourcing opportunities. When we made adjustments to our workforce and operations, we incurred incremental expenses that delay the benefit of a more efficient workforce and operating structure, but we believe that increased operating efficiency and reduced costs associated with the operation of our business are important to our long-term competitiveness. | As part of our ongoing effort to implement our strategy of reducing operating costs, we have evaluated our workforce and operations and made adjustments, including headcount reductions and business process reengineering resulting in optimized work flow at rental locations and maintenance facilities as well as streamlined our back-office operations and evaluated potential outsourcing opportunities. When we made adjustments to our workforce and operations, we incurred incremental expenses that delay the benefit of a more efficient workforce and operating structure, but we believe that increased operating efficiency and reduced costs associated with the operation of our business are important to our long-term competitiveness. | |||||||||||||||||||||||||||||||||||||||
During 2007 through 2012, we announced several initiatives to improve our competitiveness and industry leadership through targeted job reductions. These initiatives included, but were not limited to, job reductions at our corporate headquarters and back-office operations in the U.S. and Europe. As part of our re-engineering optimization we outsourced selected functions globally. In addition, we streamlined operations and reduced costs by initiating the closure of targeted car rental locations and equipment rental branches throughout the world. The largest of these closures occurred in 2008 which resulted in closures of approximately 250 off-airport locations and 22 branches in our U.S. equipment rental business. These initiatives impacted approximately 9,610 employees. | During 2007 through 2011, we announced several initiatives to improve our competitiveness and industry leadership through targeted job reductions. These initiatives included, but were not limited to, job reductions at our corporate headquarters and back-office operations in the U.S. and Europe. As part of our re-engineering optimization we outsourced selected functions globally. In addition, we streamlined operations and reduced costs by initiating the closure of targeted car rental locations and equipment rental branches throughout the world. The largest of these closures occurred in 2008 which resulted in closures of approximately 250 off-airport locations and 22 branches in our U.S. equipment rental business. These initiatives impacted approximately 8,960 employees. | |||||||||||||||||||||||||||||||||||||||
During the first and second quarters of 2013, we continued to streamline operations (including actions associated with the Dollar Thrifty integration) and reduce costs with the closure of several car rental and equipment rental locations globally as well as a reduction in our workforce by approximately 50 and 515 employees, respectively. | During 2012, we continued to streamline operations and reduce costs with the closure of several car rental and equipment rental locations globally as well as a reduction in our workforce by approximately 650 employees. | |||||||||||||||||||||||||||||||||||||||
From January 1, 2007 through June 30, 2013, we incurred $589.7 million ($301.6 million for our car rental segment, $231.6 million for our equipment rental segment and $56.5 million of other) of restructuring charges. | From January 1, 2007 through December 31, 2012, we incurred $568.4 million ($282.7 million for our car rental segment, $230.3 million for our equipment rental segment and $55.4 million of other) of restructuring charges. | |||||||||||||||||||||||||||||||||||||||
Additional efficiency and cost saving initiatives are being developed; however, we presently do not have firm plans or estimates of any related expenses. | Additional efficiency and cost saving initiatives are being developed; however, we presently do not have firm plans or estimates of any related expenses. | |||||||||||||||||||||||||||||||||||||||
Restructuring charges in our consolidated statement of operations can be summarized as follows (in millions of dollars). | Restructuring charges in our consolidated statement of operations can be summarized as follows (in millions of dollars): | |||||||||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | Years Ended December 31, | ||||||||||||||||||||||||||||||||||||||
June 30, | June 30, | 2012 | 2011 | 2010 | ||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | By Type: | ||||||||||||||||||||||||||||||||||||
By Type: | Termination benefits | $ | 26.2 | $ | 14.4 | $ | 12.2 | |||||||||||||||||||||||||||||||||
Termination benefits | $ | 15.2 | $ | 13.5 | $ | 17.4 | $ | 16.2 | ||||||||||||||||||||||||||||||||
Pension and post retirement expense | 1 | 0.4 | 0.4 | |||||||||||||||||||||||||||||||||||||
Consultant costs | 0.5 | 0.4 | 0.8 | 0.6 | ||||||||||||||||||||||||||||||||||||
Consultant costs | 1.2 | 1.3 | 1.1 | |||||||||||||||||||||||||||||||||||||
Facility closure and lease obligation costs | 1.9 | 2.2 | 3.1 | 6 | ||||||||||||||||||||||||||||||||||||
Asset writedowns | — | 23.2 | 20.4 | |||||||||||||||||||||||||||||||||||||
Total | $ | 17.6 | $ | 16.1 | $ | 21.3 | $ | 22.8 | ||||||||||||||||||||||||||||||||
Facility closure and lease obligation costs | 8.9 | 16.5 | 14.3 | |||||||||||||||||||||||||||||||||||||
Relocation costs and temporary labor costs | 0.4 | 0.6 | 5 | |||||||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||||||||||
June 30, | June 30, | Other | 0.3 | — | 1.3 | |||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||
By Caption: | Total | $ | 38 | $ | 56.4 | $ | 54.7 | |||||||||||||||||||||||||||||||||
Direct operating | $ | 6.8 | $ | 7 | $ | 8.3 | $ | 11.9 | ||||||||||||||||||||||||||||||||
Selling, general and administrative | 10.8 | 9.1 | 13 | 10.9 | ||||||||||||||||||||||||||||||||||||
Total | $ | 17.6 | $ | 16.1 | $ | 21.3 | $ | 22.8 | Years Ended December 31, | |||||||||||||||||||||||||||||||
2012 | 2011 | 2010 | ||||||||||||||||||||||||||||||||||||||
By Caption: | ||||||||||||||||||||||||||||||||||||||||
Direct operating | $ | 22.6 | $ | 46.6 | $ | 43.5 | ||||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||||||||||
June 30, | June 30, | Selling, general and administrative | 15.4 | 9.8 | 11.2 | |||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||
By Segment: | Total | $ | 38 | $ | 56.4 | $ | 54.7 | |||||||||||||||||||||||||||||||||
Car rental | $ | 15.8 | $ | 11.8 | $ | 18.9 | $ | 15.3 | ||||||||||||||||||||||||||||||||
Equipment rental | 0.8 | 2.6 | 1.3 | 5.8 | ||||||||||||||||||||||||||||||||||||
Other reconciling items | 1 | 1.7 | 1.1 | 1.7 | Years Ended December 31, | |||||||||||||||||||||||||||||||||||
2012 | 2011 | 2010 | ||||||||||||||||||||||||||||||||||||||
Total | $ | 17.6 | $ | 16.1 | $ | 21.3 | $ | 22.8 | By Segment: | |||||||||||||||||||||||||||||||
Car rental | $ | 26.4 | $ | 16.6 | $ | 18.1 | ||||||||||||||||||||||||||||||||||
The following table sets forth the activity affecting the restructuring accrual during the three months ended June 30, 2013 (in millions of dollars). We expect 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. | ||||||||||||||||||||||||||||||||||||||||
Equipment rental | 8.8 | 40.5 | 34.7 | |||||||||||||||||||||||||||||||||||||
Termination | Pension | Consultant | Other | Total | Other reconciling items | 2.8 | (0.7 | ) | 1.9 | |||||||||||||||||||||||||||||||
Benefits | and Post-retirement | Costs | ||||||||||||||||||||||||||||||||||||||
Expense | Total | $ | 38 | $ | 56.4 | $ | 54.7 | |||||||||||||||||||||||||||||||||
Balance as of January 1, 2013 | $ | 12.4 | $ | 0.2 | $ | 0.3 | $ | 8.1 | $ | 21 | ||||||||||||||||||||||||||||||
Charges incurred | 17.4 | — | 0.8 | 3.1 | 21.3 | The following table sets forth the activity affecting the restructuring accrual during the year ended December 31, 2012 (in millions of dollars). We expect to pay the remaining restructuring obligations relating to termination benefits over the next twelve months. The remainder of the restructuring accrual relates to future lease obligations which will be paid over the remaining term of the applicable leases. | ||||||||||||||||||||||||||||||||||
Cash payments | (17.4 | ) | (0.2 | ) | (0.9 | ) | (1.5 | ) | (20.0 | ) | ||||||||||||||||||||||||||||||
Other(1) | (0.3 | ) | — | — | (3.2 | ) | (3.5 | ) | Termination | Pension | Consultant | Other | Total | |||||||||||||||||||||||||||
Benefits | and Post | Costs | ||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2013 | $ | 12.1 | $ | — | $ | 0.2 | $ | 6.5 | $ | 18.8 | Retirement | |||||||||||||||||||||||||||||
Expense | ||||||||||||||||||||||||||||||||||||||||
_______________________________________________________________________________ | Balance as of January 1, 2011 | $ | 6.3 | $ | 0.2 | $ | 0.1 | $ | 10.9 | $ | 17.5 | |||||||||||||||||||||||||||||
(1)Primarily consists of $3.2 million for facility closures and $0.3 million for foreign currency translation. | ||||||||||||||||||||||||||||||||||||||||
Charges incurred | 14.4 | 0.4 | 1.3 | 40.3 | 56.4 | |||||||||||||||||||||||||||||||||||
Cash payments | (15.5 | ) | — | (0.6 | ) | (2.3 | ) | (18.4 | ) | |||||||||||||||||||||||||||||||
Other(1) | 3.9 | (0.4 | ) | (0.2 | ) | (37.2 | ) | (33.9 | ) | |||||||||||||||||||||||||||||||
Balance as of December 31, 2011 | $ | 9.1 | $ | 0.2 | $ | 0.6 | $ | 11.7 | $ | 21.6 | ||||||||||||||||||||||||||||||
Charges incurred | 26.2 | 1 | 1.2 | 9.6 | 38 | |||||||||||||||||||||||||||||||||||
Cash payments | (22.6 | ) | — | (0.9 | ) | (3.3 | ) | (26.8 | ) | |||||||||||||||||||||||||||||||
Other(2) | (0.3 | ) | (1.0 | ) | (0.6 | ) | (9.9 | ) | (11.8 | ) | ||||||||||||||||||||||||||||||
Balance as of December 31, 2012 | $ | 12.4 | $ | 0.2 | $ | 0.3 | $ | 8.1 | $ | 21 | ||||||||||||||||||||||||||||||
_______________________________________________________________________________ | ||||||||||||||||||||||||||||||||||||||||
-1 | Consists of decreases of $23.2 million for asset writedowns, $13.9 million for facility closures, $0.4 million in ASC 715 pension adjustment and $0.2 million of consultant costs, partly offset by a $3.8 million increase for involuntary benefits. | |||||||||||||||||||||||||||||||||||||||
-2 | Primarily consists of decreases of $10.3 million for facility closures and $1.0 million in ASC 715 pension adjustment. |
Financial_Instruments
Financial Instruments | 6 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | ||||||||||||||||||||||||||||||||||||||||
Financial Instruments | |||||||||||||||||||||||||||||||||||||||||
Financial Instruments | Financial Instruments | Financial Instruments | |||||||||||||||||||||||||||||||||||||||
Gasoline Swap Contracts | Gasoline Swap Contracts | ||||||||||||||||||||||||||||||||||||||||
We purchase unleaded gasoline and diesel fuel at prevailing market rates and maintain a program to manage our exposure to changes in fuel prices through the use of derivative commodity instruments. We currently have in place swaps to cover a portion of our fuel price exposure through July 2014. We presently hedge a portion of our overall unleaded gasoline and diesel fuel purchases with commodity swaps and have contracts in place that settle on a monthly basis. Gains and losses resulting from changes in the fair value of these commodity instruments are included in our results of operations in the periods incurred. | We purchase unleaded gasoline and diesel fuel at prevailing market rates and maintain a program to manage our exposure to changes in fuel prices through the use of derivative commodity instruments. We currently have in place swaps to cover a portion of our fuel price exposure through March 2014. We presently hedge a portion of our overall unleaded gasoline and diesel fuel purchases with commodity swaps and have contracts in place that settle on a monthly basis. Gains and losses resulting from changes in the fair value of these commodity instruments are included in our results of operations in the periods incurred. | ||||||||||||||||||||||||||||||||||||||||
Interest Rate Cap Contracts | Interest Rate Cap Contracts | ||||||||||||||||||||||||||||||||||||||||
Hertz is exposed to market risks, such as changes in interest rates, and has purchased and sold interest rate cap agreements to manage that risk. Consequently, we manage the financial exposure as part of our risk management program by striving to reduce the potentially adverse effects that the volatility of the financial markets may have on our operating results. Gains and losses resulting from changes in the fair value of these interest rate caps are included in our results of operations in the periods incurred. | Hertz is exposed to market risks, such as changes in interest rates, and has purchased and sold interest rate cap agreements to manage that risk. Consequently, we manage the financial exposure as part of our risk management program by striving to reduce the potentially adverse effects that the volatility of the financial markets may have on our operating results. Gains and losses resulting from changes in the fair value of these interest rate caps are included in our results of operations in the periods incurred. | ||||||||||||||||||||||||||||||||||||||||
Foreign Currency Forward Contracts | Foreign Currency Forward Contracts | ||||||||||||||||||||||||||||||||||||||||
We manage exposure to fluctuations in currency risk on intercompany loans we make to certain of our subsidiaries by entering into foreign currency forward contracts at the time of the loans which are intended to offset the impact of foreign currency movements on the underlying intercompany loan obligations. | We manage exposure to fluctuations in currency risk on intercompany loans we make to certain of our subsidiaries by entering into foreign currency forward contracts at the time of the loans which are intended to offset the impact of foreign currency movements on the underlying intercompany loan obligations. | ||||||||||||||||||||||||||||||||||||||||
Foreign Exchange Options | Foreign Exchange Options | ||||||||||||||||||||||||||||||||||||||||
We manage our foreign currency risk primarily by incurring, to the extent practicable, operating and financing expenses in the local currency in the countries in which we operate, including making fleet and equipment purchases and borrowing for working capital needs. Also, we have purchased foreign exchange options to manage exposure to fluctuations in foreign exchange rates for selected marketing programs. The effect of exchange rate changes on these financial instruments would not materially affect our consolidated financial position, results of operations or cash flows. Our risks with respect to foreign exchange options are limited to the premium paid for the right to exercise the option and the future performance of the option's counterparty. | We manage our foreign currency risk primarily by incurring, to the extent practicable, operating and financing expenses in the local currency in the countries in which we operate, including making fleet and equipment purchases and borrowing for working capital needs. Also, we have purchased foreign exchange options to manage exposure to fluctuations in foreign exchange rates for selected marketing programs. The effect of exchange rate changes on these financial instruments would not materially affect our consolidated financial position, results of operations or cash flows. Our risks with respect to foreign exchange options are limited to the premium paid for the right to exercise the option and the future performance of the option's counterparty. | ||||||||||||||||||||||||||||||||||||||||
The following table summarizes the estimated fair value of derivatives (in millions of dollars): | The following table summarizes the estimated fair value of derivatives (in millions of dollars): | ||||||||||||||||||||||||||||||||||||||||
Fair Value of Derivative Instruments(1) | Fair Value of Derivative Instruments(1) | ||||||||||||||||||||||||||||||||||||||||
Asset Derivatives(2) | Liability Derivatives(2) | Asset Derivatives(2) | Liability Derivatives(2) | ||||||||||||||||||||||||||||||||||||||
June 30, | December 31, | June 30, | December 31, | December 31, | December 31, | December 31, | December 31, | ||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2012 | 2011 | 2012 | 2011 | ||||||||||||||||||||||||||||||||||
Derivatives not designated as hedging | Derivatives not designated as hedging | ||||||||||||||||||||||||||||||||||||||||
instruments under ASC 815: | instruments under ASC 815: | ||||||||||||||||||||||||||||||||||||||||
Gasoline swaps | $ | — | $ | — | $ | 0.9 | $ | 0.1 | Gasoline swaps | $ | — | $ | — | $ | 0.1 | $ | 0.4 | ||||||||||||||||||||||||
Interest rate caps | 0.6 | 0.9 | 0.6 | 0.9 | Interest rate caps | 0.9 | 0.5 | 0.9 | 0.4 | ||||||||||||||||||||||||||||||||
Foreign exchange forward contracts | 4.8 | 3.4 | 1.9 | 4.5 | Foreign exchange forward contracts | 3.4 | 4.4 | 4.5 | 1.9 | ||||||||||||||||||||||||||||||||
Foreign exchange options | 0.1 | 0.2 | — | — | Interest rate swaps | — | — | — | 0.2 | ||||||||||||||||||||||||||||||||
Total derivatives not designated as hedging | Foreign exchange options | 0.2 | 0.1 | — | — | ||||||||||||||||||||||||||||||||||||
instruments under ASC 815 | $ | 5.5 | $ | 4.5 | $ | 3.4 | $ | 5.5 | |||||||||||||||||||||||||||||||||
Total derivatives not designated as hedging | |||||||||||||||||||||||||||||||||||||||||
_______________________________________________________________________________ | instruments under ASC 815 | $ | 4.5 | $ | 5 | $ | 5.5 | $ | 2.9 | ||||||||||||||||||||||||||||||||
-1 | All fair value measurements were primarily based upon significant observable (Level 2) inputs. | _______________________________________________________________________________ | |||||||||||||||||||||||||||||||||||||||
-2 | All asset derivatives are recorded in "Prepaid expenses and other assets" and all liability derivatives are recorded in "Accrued liabilities" on our condensed consolidated balance sheets. | -1 | All fair value measurements were primarily based upon significant observable (Level 2) inputs. | ||||||||||||||||||||||||||||||||||||||
The following table summarizes the gains and (losses) of derivatives (in millions of dollars): | |||||||||||||||||||||||||||||||||||||||||
-2 | All asset derivatives are recorded in "Prepaid expenses and other assets" and all liability derivatives are recorded in "Other accrued liabilities" on our consolidated balance sheets. | ||||||||||||||||||||||||||||||||||||||||
The following table summarizes the (gains) and losses of derivatives (in millions of dollars): | |||||||||||||||||||||||||||||||||||||||||
Location of Gain or (Loss) | Amount of Gain or | ||||||||||||||||||||||||||||||||||||||||
Recognized on Derivatives | (Loss) Recognized in | ||||||||||||||||||||||||||||||||||||||||
Income on Derivatives | Location of Gain or (Loss) | Amount of Gain or | |||||||||||||||||||||||||||||||||||||||
Three Months Ended | Recognized on Derivatives | (Loss) Recognized in | |||||||||||||||||||||||||||||||||||||||
June 30, | Income on Derivatives | ||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | Years Ended December 31, | |||||||||||||||||||||||||||||||||||||||
Derivatives not designated as hedging | 2012 | 2011 | |||||||||||||||||||||||||||||||||||||||
instruments under ASC 815: | Derivatives not designated as hedging | ||||||||||||||||||||||||||||||||||||||||
Gasoline swaps | Direct operating | $ | (2.5 | ) | $ | (3.3 | ) | instruments under ASC 815: | |||||||||||||||||||||||||||||||||
Interest rate caps | Selling, general and administrative | — | (0.1 | ) | Gasoline swaps | Direct operating | $ | 0.7 | $ | 2.6 | |||||||||||||||||||||||||||||||
Foreign exchange forward contracts | Selling, general and administrative | (7.1 | ) | (7.7 | ) | Interest rate caps | Selling, general and administrative | (0.8 | ) | — | |||||||||||||||||||||||||||||||
Foreign exchange options | Selling, general and administrative | — | 0.1 | ||||||||||||||||||||||||||||||||||||||
Foreign exchange forward contracts | Selling, general and administrative | (15.4 | ) | (11.0 | ) | ||||||||||||||||||||||||||||||||||||
Total | $ | (9.6 | ) | $ | (11.0 | ) | Foreign exchange options | Selling, general and administrative | — | (0.2 | ) | ||||||||||||||||||||||||||||||
Total | $ | (15.5 | ) | $ | (8.6 | ) | |||||||||||||||||||||||||||||||||||
Location of Gain or (Loss) | Amount of Gain or | Fair value measures | |||||||||||||||||||||||||||||||||||||||
Recognized on Derivatives | (Loss) Recognized in | Pursuant to the accounting guidance for fair value measurements and its subsequent updates, fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, we consider the principal or most advantageous market in which we would transact and we consider assumptions that market participants would use when pricing the asset or liability. | |||||||||||||||||||||||||||||||||||||||
Income on Derivatives | Fair Value Hierarchy | ||||||||||||||||||||||||||||||||||||||||
Six Months Ended | The accounting guidance for fair value measurements also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument's categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The inputs are prioritized into three levels that may be used to measure fair value: | ||||||||||||||||||||||||||||||||||||||||
June 30, | Level 1: Inputs that reflect quoted prices for identical assets or liabilities in active markets that are observable. | ||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | Level 2: Inputs that reflect 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. | |||||||||||||||||||||||||||||||||||||||
Derivatives not designated as hedging | Level 3: Inputs that are unobservable to the extent that observable inputs are not available for the asset or liability at the measurement date. | ||||||||||||||||||||||||||||||||||||||||
instruments under ASC 815: | Asset and Liabilities Measured at Fair Value on a Recurring Basis | ||||||||||||||||||||||||||||||||||||||||
Gasoline swaps | Direct operating | $ | (0.8 | ) | $ | (1.5 | ) | Assets and liabilities measured at fair value on a recurring basis as of December 31, 2012 and 2011 were as follows (in millions): | |||||||||||||||||||||||||||||||||
Interest rate caps | Selling, general and administrative | 0.1 | (0.1 | ) | |||||||||||||||||||||||||||||||||||||
Foreign exchange forward contracts | Selling, general and administrative | (2.9 | ) | (5.6 | ) | 31-Dec-12 | |||||||||||||||||||||||||||||||||||
Foreign exchange options | Selling, general and administrative | (0.1 | ) | 0.1 | Fair Value Measurements Using | ||||||||||||||||||||||||||||||||||||
Total | Quoted Prices in Active Markets | Significant | Significant | ||||||||||||||||||||||||||||||||||||||
Total | $ | (3.7 | ) | $ | (7.1 | ) | for Identical | Other | Unobservable | ||||||||||||||||||||||||||||||||
Instruments | Observable | Inputs | |||||||||||||||||||||||||||||||||||||||
While our fuel derivatives, foreign currency forward contracts,foreign exchange options and certain interest rate caps are subject to enforceable master netting agreements with their counterparties, we do not offset the derivative assets and liabilities in our condensed consolidated balance sheets. | (Level 1) | Inputs | (Level 3) | ||||||||||||||||||||||||||||||||||||||
(Level 2) | |||||||||||||||||||||||||||||||||||||||||
The impact of offsetting derivative instruments is depicted below (in millions of dollars): | Prepaid Expenses and Other Current Assets: | ||||||||||||||||||||||||||||||||||||||||
Interest rate caps | $ | 0.9 | $ | — | $ | 0.9 | $ | — | |||||||||||||||||||||||||||||||||
As of June 30, 2013: | Gross amounts not offset in Balance Sheet | Foreign currency forward contracts | 3.4 | — | 3.4 | — | |||||||||||||||||||||||||||||||||||
Gross assets | Gross assets offset in Balance Sheet | Net recognized assets in Balance Sheet | Financial Instruments | Cash Collateral | Net Amount | ||||||||||||||||||||||||||||||||||||
Interest rate caps | $ | 0.6 | $ | — | $ | 0.6 | $ | — | $ | — | $ | 0.6 | Foreign exchange options | 0.2 | — | 0.2 | — | ||||||||||||||||||||||||
Foreign exchange forward contracts | 4.8 | — | 4.8 | (2.8 | ) | — | 2 | Total | $ | 4.5 | $ | — | $ | 4.5 | $ | — | |||||||||||||||||||||||||
Foreign exchange options | 0.1 | — | 0.1 | — | — | 0.1 | |||||||||||||||||||||||||||||||||||
Other Current Liabilities: | |||||||||||||||||||||||||||||||||||||||||
Total | $ | 5.5 | $ | — | $ | 5.5 | $ | (2.8 | ) | $ | — | $ | 2.7 | Gasoline swaps | $ | 0.1 | $ | — | $ | 0.1 | $ | — | |||||||||||||||||||
Interest rate caps | 0.9 | — | 0.9 | — | |||||||||||||||||||||||||||||||||||||
Gross amounts not offset in Balance Sheet | Foreign currency forward contracts | 4.5 | — | 4.5 | — | ||||||||||||||||||||||||||||||||||||
Gross liabilities | Gross liabilities offset in Balance Sheet | Net recognized liabilities in Balance Sheet | Financial Instruments | Cash Collateral | Net Amount | ||||||||||||||||||||||||||||||||||||
Gasoline swaps | $ | 0.9 | $ | — | $ | 0.9 | $ | (0.9 | ) | $ | — | $ | — | Total | $ | 5.5 | $ | — | $ | 5.5 | $ | — | |||||||||||||||||||
Interest rate caps | 0.6 | — | 0.6 | — | — | 0.6 | |||||||||||||||||||||||||||||||||||
Foreign exchange forward contracts | 1.9 | — | 1.9 | (1.9 | ) | — | — | 31-Dec-11 | |||||||||||||||||||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||||||||||||||||||||||||||
Total | $ | 3.4 | $ | — | $ | 3.4 | $ | (2.8 | ) | $ | — | $ | 0.6 | Total | Quoted Prices in Active Markets | Significant | Significant | ||||||||||||||||||||||||
for Identical | Other | Unobservable | |||||||||||||||||||||||||||||||||||||||
Instruments | Observable | Inputs | |||||||||||||||||||||||||||||||||||||||
(Level 1) | Inputs | (Level 3) | |||||||||||||||||||||||||||||||||||||||
(Level 2) | |||||||||||||||||||||||||||||||||||||||||
As of December 31, 2012: | Gross amounts not offset in Balance Sheet | Prepaid Expenses and Other Current Assets: | |||||||||||||||||||||||||||||||||||||||
Gross assets | Gross assets offset in Balance Sheet | Net recognized assets in Balance Sheet | Financial Instruments | Cash Collateral | Net Amount | Interest rate caps | $ | 0.5 | $ | — | $ | 0.5 | $ | — | |||||||||||||||||||||||||||
Interest rate caps | $ | 0.9 | $ | — | $ | 0.9 | $ | — | $ | — | $ | 0.9 | |||||||||||||||||||||||||||||
Foreign currency forward contracts | 4.4 | — | 4.4 | — | |||||||||||||||||||||||||||||||||||||
Foreign exchange forward contracts | 3.4 | — | 3.4 | (1.3 | ) | — | 2.1 | ||||||||||||||||||||||||||||||||||
Foreign exchange options | 0.1 | — | 0.1 | — | |||||||||||||||||||||||||||||||||||||
Foreign exchange options | 0.2 | — | 0.2 | (0.2 | ) | — | — | ||||||||||||||||||||||||||||||||||
Investment | 33.2 | 33.2 | — | — | |||||||||||||||||||||||||||||||||||||
Total | $ | 4.5 | $ | — | $ | 4.5 | $ | (1.5 | ) | $ | — | $ | 3 | ||||||||||||||||||||||||||||
Total | $ | 38.2 | $ | 33.2 | $ | 5 | $ | — | |||||||||||||||||||||||||||||||||
Gross amounts not offset in Balance Sheet | Other Current Liabilities: | ||||||||||||||||||||||||||||||||||||||||
Gross liabilities | Gross liabilities offset in Balance Sheet | Net recognized liabilities in Balance Sheet | Financial Instruments | Cash Collateral | Net Amount | Gasoline swaps | $ | 0.4 | $ | — | $ | 0.4 | $ | — | |||||||||||||||||||||||||||
Interest rate caps | $ | 0.9 | $ | — | $ | 0.9 | $ | — | $ | — | $ | 0.9 | |||||||||||||||||||||||||||||
Interest rate caps | 0.4 | — | 0.4 | — | |||||||||||||||||||||||||||||||||||||
Gasoline swaps | 0.1 | — | 0.1 | — | — | 0.1 | |||||||||||||||||||||||||||||||||||
Foreign currency forward contracts | 1.9 | — | 1.9 | — | |||||||||||||||||||||||||||||||||||||
Foreign exchange forward contracts | 4.5 | — | 4.5 | (1.5 | ) | — | 3 | ||||||||||||||||||||||||||||||||||
Interest rate swaps | 0.2 | 0.2 | |||||||||||||||||||||||||||||||||||||||
Total | $ | 5.5 | $ | — | $ | 5.5 | $ | (1.5 | ) | $ | — | $ | 4 | ||||||||||||||||||||||||||||
Total | $ | 2.9 | $ | — | $ | 2.9 | $ | — | |||||||||||||||||||||||||||||||||
Fair value measures | |||||||||||||||||||||||||||||||||||||||||
Pursuant to the accounting guidance for fair value measurements and its subsequent updates, fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, we consider the principal or most advantageous market in which we would transact and we consider assumptions that market participants would use when pricing the asset or liability. | Gasoline swaps | ||||||||||||||||||||||||||||||||||||||||
Fair Value Hierarchy | Gasoline swaps classified as Level 2 assets and liabilities are priced using quoted market prices for similar assets or liabilities in active markets. | ||||||||||||||||||||||||||||||||||||||||
The accounting guidance for fair value measurements also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument's categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The inputs are prioritized into three levels that may be used to measure fair value: | Interest rate caps | ||||||||||||||||||||||||||||||||||||||||
Level 1: Inputs that reflect quoted prices for identical assets or liabilities in active markets that are observable. | Interest rate caps classified as Level 2 assets and liabilities are priced using quoted market prices for similar assets or liabilities in active markets. | ||||||||||||||||||||||||||||||||||||||||
Level 2: Inputs that reflect 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. | Foreign currency forward contracts | ||||||||||||||||||||||||||||||||||||||||
Level 3: Inputs that are unobservable to the extent that observable inputs are not available for the asset or liability at the measurement date. | Foreign currency forward contracts classified as Level 2 assets and liabilities are priced using quoted market prices for similar assets or liabilities in active markets. | ||||||||||||||||||||||||||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Foreign exchange options | ||||||||||||||||||||||||||||||||||||||||
Assets and liabilities measured at fair value on a recurring basis as of June 30, 2013 and December 31, 2012 were as follows (in millions): | Foreign currency forward contracts classified as Level 2 assets and liabilities are priced using quoted market prices for similar assets or liabilities in active markets. | ||||||||||||||||||||||||||||||||||||||||
Investments | |||||||||||||||||||||||||||||||||||||||||
Investments classified as Level 1 assets and liabilities are priced using quoted market prices for identical assets in active markets that are observable. | |||||||||||||||||||||||||||||||||||||||||
30-Jun-13 | Fair Value of Financial Instruments | ||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements Using | The fair values of cash and cash equivalents, 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. | ||||||||||||||||||||||||||||||||||||||||
Total | Quoted Prices in Active Markets | Significant | Significant | For borrowings with an initial maturity of 90 days or less, fair value approximates carrying value because of the short-term nature of these instruments. For all other debt, fair value is estimated based on quoted market rates as well as borrowing rates currently available to us for loans with similar terms and average maturities (Level 2 inputs). The aggregate fair value of all debt at December 31, 2012 was $15,529.4 million, compared to its aggregate unpaid principal balance of $14,999.1 million. The aggregate fair value of all debt at December 31, 2011 was $11,092.4 million, compared to its aggregate unpaid principal balance of $10,925.6 million. | |||||||||||||||||||||||||||||||||||||
for Identical | Other | Unobservable | |||||||||||||||||||||||||||||||||||||||
Instruments | Observable | Inputs | |||||||||||||||||||||||||||||||||||||||
(Level 1) | Inputs | (Level 3) | |||||||||||||||||||||||||||||||||||||||
(Level 2) | |||||||||||||||||||||||||||||||||||||||||
Prepaid Expenses and Other Assets: | |||||||||||||||||||||||||||||||||||||||||
Interest rate caps | $ | 0.6 | $ | — | $ | 0.6 | $ | — | |||||||||||||||||||||||||||||||||
Foreign currency forward contracts | 4.8 | — | 4.8 | — | |||||||||||||||||||||||||||||||||||||
Foreign exchange options | 0.1 | — | 0.1 | — | |||||||||||||||||||||||||||||||||||||
Total | $ | 5.5 | $ | — | $ | 5.5 | $ | — | |||||||||||||||||||||||||||||||||
Other Liabilities: | |||||||||||||||||||||||||||||||||||||||||
Gasoline swaps | $ | 0.9 | $ | — | $ | 0.9 | $ | — | |||||||||||||||||||||||||||||||||
Interest rate caps | $ | 0.6 | $ | — | $ | 0.6 | $ | — | |||||||||||||||||||||||||||||||||
Foreign currency forward contracts | 1.9 | — | 1.9 | — | |||||||||||||||||||||||||||||||||||||
Total | $ | 3.4 | $ | — | $ | 3.4 | $ | — | |||||||||||||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||||||||||||||||||||||||||
Total | Quoted Prices in Active Markets | Significant | Significant | ||||||||||||||||||||||||||||||||||||||
for Identical | Other | Unobservable | |||||||||||||||||||||||||||||||||||||||
Instruments | Observable | Inputs | |||||||||||||||||||||||||||||||||||||||
(Level 1) | Inputs | (Level 3) | |||||||||||||||||||||||||||||||||||||||
(Level 2) | |||||||||||||||||||||||||||||||||||||||||
Prepaid Expenses and Other Assets: | |||||||||||||||||||||||||||||||||||||||||
Interest rate caps | $ | 0.9 | $ | — | $ | 0.9 | $ | — | |||||||||||||||||||||||||||||||||
Foreign currency forward contracts | 3.4 | — | 3.4 | — | |||||||||||||||||||||||||||||||||||||
Foreign exchange options | 0.2 | — | 0.2 | — | |||||||||||||||||||||||||||||||||||||
Total | $ | 4.5 | $ | — | $ | 4.5 | $ | — | |||||||||||||||||||||||||||||||||
Other Liabilities: | |||||||||||||||||||||||||||||||||||||||||
Gasoline swaps | $ | 0.1 | $ | — | $ | 0.1 | $ | — | |||||||||||||||||||||||||||||||||
Interest rate caps | 0.9 | — | 0.9 | — | |||||||||||||||||||||||||||||||||||||
Foreign currency forward contracts | 4.5 | — | 4.5 | — | |||||||||||||||||||||||||||||||||||||
Total | $ | 5.5 | $ | — | $ | 5.5 | $ | — | |||||||||||||||||||||||||||||||||
Gasoline swaps | |||||||||||||||||||||||||||||||||||||||||
Gasoline swaps classified as Level 2 assets and liabilities are priced using quoted market prices for similar assets or liabilities in active markets. | |||||||||||||||||||||||||||||||||||||||||
Interest rate caps | |||||||||||||||||||||||||||||||||||||||||
Interest rate caps classified as Level 2 assets and liabilities are priced using quoted market prices for similar assets or liabilities in active markets. | |||||||||||||||||||||||||||||||||||||||||
Foreign currency forward contracts | |||||||||||||||||||||||||||||||||||||||||
Foreign currency forward contracts classified as Level 2 assets and liabilities are priced using quoted market prices for similar assets or liabilities in active markets. | |||||||||||||||||||||||||||||||||||||||||
Foreign exchange options | |||||||||||||||||||||||||||||||||||||||||
Foreign currency forward contracts classified as Level 2 assets and liabilities are priced using quoted market prices for similar assets or liabilities in active markets. | |||||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments | |||||||||||||||||||||||||||||||||||||||||
The fair values of cash and cash equivalents, 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. | |||||||||||||||||||||||||||||||||||||||||
Marketable securities held by us consist of debt securities classified as available-for-sale, which are carried at fair value and are included within "Prepaid expenses and other assets." Unrealized gains and losses, net of related income taxes, are included in "Accumulated other comprehensive loss." As of June 30, 2013 and December 31, 2012, the fair value of debt securities was $132.0 million and $0.0 million, respectively. For the three and six months ended June 30, 2013, unrealized gains of $2.0 million were recorded in "Accumulated other comprehensive loss." Hertz classifies its investment in the convertible notes within Level 3 because it is valued using significant unobservable inputs. To estimate the fair value, Hertz utilized a binomial valuation model. The most significant unobservable inputs we use are our estimates of the underlying equity value of the investee. The discount rates and volatility used in the measurements of fair value were between 6% - 21% and 36% - 42%, respectively, and are based on the underlying risk associated with our estimate of the underlying equity value of the investee, as well as the terms of the respective contracts. The credit rating of the investee, general business conditions, liquidity, and underlying equity value could materially affect the fair value of the convertible notes. Hertz periodically conducts reviews and engages valuation specialists to verify pricing and assesses liquidity to determine if significant inputs have changed that would impact the fair value hierarchy disclosure. For further information on assets classified as Level 3 measurement, see Note 5—Business Combinations and Divestitures. | |||||||||||||||||||||||||||||||||||||||||
The following table summarizes the changes in fair value measurement using Level 3 inputs for the three and six months ended June 30, 2013 (in millions of dollars): | |||||||||||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||||||||
30-Jun-13 | 30-Jun-13 | ||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements Using Level 3 Inputs Convertible Notes | |||||||||||||||||||||||||||||||||||||||||
Balance at the beginning of period | $ | — | $ | — | |||||||||||||||||||||||||||||||||||||
Realized gain (losses) included in earnings | — | — | |||||||||||||||||||||||||||||||||||||||
Unrealized gain related to investments | 2 | 2 | |||||||||||||||||||||||||||||||||||||||
Purchases | 130 | 130 | |||||||||||||||||||||||||||||||||||||||
Settlements | — | — | |||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2013 | $ | 132 | $ | 132 | |||||||||||||||||||||||||||||||||||||
For the three and six months ended June 30, 2012, unrealized gains of $0.0 million and $5.1 million, respectively, were recorded in "Accumulated other comprehensive loss." These mostly comprised previously held equity interest in Dollar Thrifty with fair values based on Level 1 inputs consisting of quoted market price. Hertz subsequently acquired all remaining shares of Dollar Thrifty common stock on November 19, 2012. For a further discussion of the Dollar Thrifty acquisition refer to Note 4 of the Notes to our audited annual consolidated financial statements included in our Form 10-K under the caption “Item 8—Financial Statements and Supplementary Data.” | |||||||||||||||||||||||||||||||||||||||||
For borrowings with an initial maturity of 90 days or less, fair value approximates carrying value because of the short-term nature of these instruments. For all other debt, fair value is estimated based on quoted market rates as well as borrowing rates currently available to us for loans with similar terms and average maturities (Level 2 inputs). The aggregate fair value of all debt at June 30, 2013 was $17,699.0 million, compared to its aggregate unpaid principal balance of $17,382.2 million. The aggregate fair value of all debt at December 31, 2012 was $15,529.4 million, compared to its aggregate unpaid principal balance of $14,999.1 million. |
Related_Party_Transactions
Related Party Transactions | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2013 | Dec. 31, 2012 | ||
Related Party Transactions | |||
Related Party Transactions | Related Party Transactions | Related Party Transactions | |
Relationship with Hertz Investors, Inc., Hertz Holdings and the Sponsors | Relationship with Hertz Investors, Inc. and the Sponsors | ||
On December 21, 2005, investment funds associated with or designated by: | Stockholders Agreement | ||
In connection with the Acquisition, Hertz Holdings entered into a stockholders agreement (as amended, the “Stockholders Agreement”) with investment funds associated with or designated by the Sponsors. Based on current share ownership of the Sponsors, the Stockholders Agreement contains agreements that entitle investment funds associated with or designated by the Sponsors to nominate two nominees of an investment fund associated with CD&R (one of whom shall serve as the chairman or, if the chief executive officer is the chairman, the lead director), one nominee of investment funds associated with Carlyle, and one nominee of an investment fund associated with Merrill Lynch. The Stockholders Agreement also provides that Hertz Holdings' chief executive officer shall be designated as a director, unless otherwise approved by a majority of the Sponsor Designees. In addition, the Stockholders Agreement provides that one of the nominees of an investment fund associated with CD&R shall serve as the chairman of the executive and governance committee of Hertz Holdings and, unless otherwise agreed by this fund, as Chairman of the Board of Directors of Hertz Holdings or lead director. | |||
• | Clayton, Dubilier & Rice, Inc., which was succeeded by Clayton, Dubilier & Rice, LLC, or “CD&R,” | The Stockholders Agreement grants to the investment funds associated with CD&R or to the board, with the approval of the majority of the Sponsor Designees, the right to remove Hertz Holdings' chief executive officer. Any replacement chief executive officer requires the consent of the investment funds associated with CD&R as well as investment funds associated with at least one other Sponsor. It also contains restrictions on the transfer of Hertz Holdings' shares, and provides for tag-along and drag-along rights, in certain circumstances. The rights described above apply only for so long as the investment funds associated with the applicable Sponsor maintain certain specified minimum levels of shareholdings in Hertz Holdings. | |
The Stockholders Agreement limits the rights of the investment funds associated with or designated by the Sponsors that have invested in the common stock of Hertz Holdings and its affiliates, subject to several exceptions, to own, manage, operate or control any of our “competitors” (as defined in the Stockholders Agreement). The Stockholders Agreement may be amended from time to time in the future to eliminate or modify these restrictions without Hertz Holdings' consent. | |||
• | The Carlyle Group, or “Carlyle,” and | Registration Rights Agreement | |
On December 21, 2005, Hertz Holdings entered into a registration rights agreement (as amended, the “Registration Rights Agreement”) with investment funds associated with or designated by the Sponsors. The Registration Rights Agreement grants to certain of these investment funds the right, to cause Hertz Holdings, at its own expense, to use its best efforts to register such securities held by the investment funds for public resale, subject to certain limitations. The exercise of this right is limited to three requests by the group of investment funds associated with each Sponsor, except for registrations effected pursuant to Form S-3, which are unlimited, subject to certain limitations, if Hertz Holdings is eligible to use Form S-3. The secondary offerings of the common stock of Hertz Holdings in June 2007, May 2009, June 2009, March 2011 and December 2012 were effected pursuant to this Registration Rights Agreement. In the event Hertz Holdings registers any of its common stock, these investment funds have the right to require us to use our best efforts to include shares of the common stock of Hertz Holdings held by them, subject to certain limitations, including as determined by the underwriters. The Registration Rights Agreement provides for Hertz Holdings to indemnify the investment funds party to that agreement and their affiliates in connection with the registration of Hertz Holdings' securities. | |||
• | Merrill Lynch & Co., Inc., or "Merrill Lynch," | Director Compensation Policy | |
or collectively the “Sponsors,” acquired all of our common stock from Ford Holdings LLC. | Our directors who are also members of the Board of Directors of Hertz Holdings receive no additional compensation for serving on our Board of Directors or any committee of our Board of Directors. Currently all members of our Board of Directors are also members of the Board of Directors of Hertz Holdings. The compensation expense of the Hertz Holdings' directors is pushed down from Hertz Holdings and recorded on the books at the Hertz level. | ||
Other than as disclosed below, in the six months ended June 30, 2013, there were no material changes to our relationship with Hertz Investors, Inc., Hertz Holdings or the Sponsors. | In November 2011, Hertz Holdings' Board of Directors amended and restated the Director Compensation Policy. Pursuant to the policy prior to November 2011 its directors who are not also employees each received a $170,000 annual retainer fee, of which $70,000 was payable in cash and $100,000 was payable in the form of shares of Hertz Holdings' common stock. Starting in November 2011, the policy now provides that Hertz Holdings' directors who are not also employees each receive a $210,000 annual retainer fee, of which $85,000 is payable in cash and $125,000 is payable in the form of equity. In May 2012, Hertz Holdings' Board of Directors further amended and restated the Director Compensation Policy to provide that the equity portion of the annual retainer fee would be paid annually following the annual meeting of shareholders (or the eligible director's date of election, if applicable) in the form of restricted stock units having an equivalent fair market value equal to the annual equity award amount on the date of grant. The restricted stock units will vest on the business day immediately preceding the next annual meeting of shareholders. | ||
In March 2013, the Sponsors sold 60,050,777 shares of their Hertz Holdings common stock to Citigroup Global Markets Inc. and Barclays Capital Inc. as the underwriters in the registered public offering of those shares. In connection with the offering, Hertz Holdings repurchased from the underwriters 23,200,000 of the 60,050,777 shares of common stock sold by the Sponsors. | For 2013, the lead director of Hertz Holdings' is paid an additional annual cash fee of $100,000, the chairperson of Hertz Holdings' Audit Committee is paid an additional annual cash fee of $35,000 and each other member of its Audit Committee is paid an additional annual cash fee of $17,500. For 2013, the chairperson of Hertz Holdings' Compensation, Nominating and Governance Committee is paid an additional annual cash fee of $35,000 and each other member of its Compensation, Nominating and Governance Committee receives an additional annual cash fee of $17,500. | ||
In May 2013, the Sponsors sold 49,800,405 shares of their remaining Hertz Holdings common stock to Goldman, Sachs & Co. and J.P. Morgan Securities LLC as the underwriters in the registered public offering of those shares. | Financing Arrangements with Related Parties | ||
As a result of our initial public offering in November 2006 and subsequent offerings in June 2007, May 2009, June 2009, March 2011, December 2012, March 2013 and May 2013, the Sponsors do not own any shares of Hertz Holdings common stock, other than de minimus amounts held from time to time by the Sponsors and their affiliates in the ordinary course of business. | Affiliates of Merrill Lynch (which is one of the Sponsors), including Bank of America and certain of its affiliates, have provided various investment and commercial banking and financial advisory services to us for which they have received customary fees and commissions. In addition, these parties have acted as agents, lenders, purchasers and/or underwriters to us under our respective financing arrangements, for which they have received customary fees, commissions, expenses and/or other compensation. More specifically, these parties have acted in the following capacities, or similar capacities, with respect to our financing arrangements: lenders and/or agents under the Senior Credit Facilities, the U.S. Fleet Financing Facility and certain of the U.S. Fleet Variable Funding Notes; purchasers and/or underwriters under the Senior Notes and certain of the U.S. Fleet Medium Term Notes; and structuring advisors and/or agents under the U.S. ABS Program. | ||
On May 15, 2013, Angel L. Morales, a director of Hertz Holdings and its wholly-owned subsidiary Hertz, or the "Companies," notified the Boards of Directors of the Companies that he was resigning as a director of the Companies effective immediately after the Board of Directors meeting held after the 2013 Annual Meeting held on the same day. Mr. Morales' decision to resign did not involve any disagreement with the Companies, the management of the Companies or the Boards of Directors of the Companies. | As of December 31, 2012 and December 31, 2011, approximately $189.8 million and $174.4 million, respectively, of our outstanding debt was with related parties. | ||
Financing Arrangements with Related Parties | For information on our total indebtedness, see Note 5—Debt. | ||
Based on the Sponsors' sale of shares in May 2013, none of our outstanding debt at June 30, 2013 was with related parties. As of December 31, 2012, approximately $189.8 million of our outstanding debt was with related parties. | On June 29, 2007, we entered into a master loan agreement with Hertz Holdings. The maximum amount which may be borrowed by us under this facility is $100 million. The facility expired June 29, 2012 and was renewed through June 28, 2013. The interest rate is based on the U.S. Dollar LIBOR rate plus a margin. As of December 31, 2012, there was a $12.8 million receivable from Hertz Holdings and as of December 31, 2012, there was $0.4 million in borrowings due to Hertz Holdings. | ||
For information on our total indebtedness, see Note 8—Debt. | |||
Other Sponsor Relationships | |||
In May and June 2009, Merrill Lynch, one of the Sponsors, acted as an underwriter in the common stock follow-on public offering and in the public offering of Hertz Holdings' Convertible Senior Notes, for which they received customary fees and expenses. | |||
In May 2009 Hertz Holdings entered into subscription agreements with investment funds affiliated with CD&R and Carlyle to purchase an additional 32,101,182 shares of Hertz Holdings' common stock at a price of $6.23 per share (the same price per share paid to Hertz Holdings by the underwriters in the common stock public offering) with proceeds to us of approximately $200.0 million. This closed on July 7, 2009 and the 32,101,182 shares of Hertz Holdings' common stock were issued to CD&R and Carlyle affiliated investment funds on the same date. In March 2011 and December 2012, the Sponsors sold 50,000,000 shares of their Hertz Holdings common stock to Goldman, Sachs & Co. and 50,000,000 shares of their Hertz Holdings common stock to J.P. Morgan, respectively, in each case as the sole underwriter in the registered public offering of those shares. Giving effect to these offerings, the Sponsors' ownership percentage in Hertz Holdings is approximately 26%. |
Contingencies_and_OffBalance_S
Contingencies and Off-Balance Sheet Commitments | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2013 | Dec. 31, 2012 | ||
Contingencies and Off-Balance Sheet Commitments | |||
Contingencies and Off-Balance Sheet Commitments | Contingencies and Off-Balance Sheet Commitments | Contingencies and Off-Balance Sheet Commitments | |
Off-Balance Sheet Commitments | Legal Proceedings | ||
As of June 30, 2013 and December 31, 2012, the following guarantees (including indemnification commitments) were issued and outstanding: | From time to time we are a party to various legal proceedings. Other than with respect to the aggregate claims for public liability and property damage pending against us, management does not believe that any of the matters resolved, or pending against us, during 2012 are material to us and our subsidiaries taken as a whole. While we have accrued a liability with respect to claims for public liability and property damage of $332.2 million at December 31, 2012, management, based on the advice of legal counsel, does not believe any of the other pending matters described below are material. We have summarized below, for purposes of providing background, various legal proceedings to which we were and/or are a party during 2012 or the period after December 31, 2012 but before the filing of this Annual Report. In addition to the following, various other legal actions, claims and governmental inquiries and proceedings are pending or may be instituted or asserted in the future against us and our subsidiaries. As previously disclosed, on June 15, 2011 we received a subpoena from the staff of the Securities and Exchange Commission, or "SEC," seeking production of documents related to our proposed business combination with Dollar Thrifty. On February 14, 2013, we were informed by the staff that the investigation has been completed and that no action was taken by the staff or the SEC. | ||
Indemnification Obligations | |||
In the ordinary course of business, we execute 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. We regularly evaluate the probability of having to incur costs associated with these indemnification obligations and have accrued for expected losses that are probable and estimable. The types of indemnification obligations for which payments are possible include the following: | 1 | Hertz Equipment Rental Corporation, or “HERC,” Loss Damage Waiver | |
Sponsors; Directors | On August 15, 2006, Davis Landscape, Ltd., individually and on behalf of all others similarly situated, filed a complaint against HERC in the United States District Court for the District of New Jersey. In November 2006, the complaint was amended to add another plaintiff, Miguel V. Pro, and more claims. The Davis Landscape matter purports to be a nationwide class action on behalf of all persons and business entities who rented equipment from HERC and who paid a Loss Damage Waiver, or “LDW,” or an Environmental Recovery Fee, or “ERF.” The plaintiffs seek a declaratory judgment and injunction prohibiting HERC from engaging in acts with respect to the LDW and ERF charges that violate the New Jersey Consumer Fraud Act and claim that the charges violate the Uniform Commercial Code. The plaintiffs also seek an unspecified amount of compensatory damages with the return of all LDW and ERF charges paid, attorneys' fees and costs as well as other damages. The court has granted class certification, denied our motion for summary judgment and the case is in the discovery stages. In February 2012, we filed separate motions for partial summary judgment on the LDW and ERF claims and we filed a motion to decertify the class. In June 2012, the judge denied our motion for partial summary judgment on the LDW claim and, in July 2012, the judge granted our motion for partial summary judgment on the ERF claim. The court also entered an order referring the case to mediation by private consent of the parties. We have continued to work through the mediator and in direct discussions with plaintiffs’ counsel on an acceptable settlement of this litigation and have accrued our best estimate of the ultimate cost which is not material to our financial condition. | ||
We have entered into customary indemnification agreements with Hertz Holdings, the Sponsors and Hertz Holdings' stockholders affiliated with the Sponsors, pursuant to which Hertz Holdings and we will indemnify the Sponsors, Hertz Holdings' stockholders affiliated with the Sponsors and their respective affiliates, directors, officers, partners, members, employees, agents, representatives and controlling persons, against certain liabilities arising out of performance of a consulting agreement with Hertz Holdings and each of the Sponsors and certain other claims and liabilities, including liabilities arising out of financing arrangements or securities offerings. We do not believe that these indemnifications are reasonably likely to have a material impact on us. Hertz Holdings has entered into indemnification agreements with each of its directors. | |||
Environmental | 2 | Concession Fee Recoveries | |
We have 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 we may be held responsible could be substantial. The probable expenses that we expect to incur for such matters have been accrued, and those expenses are reflected in our condensed consolidated financial statements. As of June 30, 2013 and December 31, 2012, the aggregate amounts accrued for environmental liabilities including liability for environmental indemnities, reflected in our condensed consolidated balance sheets in "Accrued liabilities" were $2.6 million and $2.6 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 we ultimately may be responsible cannot be reasonably estimated because of uncertainties with respect to factors such as our 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). | On October 13, 2006, Janet Sobel, Daniel Dugan, PhD. and Lydia Lee, individually and on behalf of all others similarly situated v. The Hertz Corporation and Enterprise Rent-A-Car Company, or “Enterprise,” was filed in the United States District Court for the District of Nevada. The plaintiffs agreed to not pursue claims against Enterprise initially and the case only proceeded against Hertz. The Sobel case purports to be a nationwide class action on behalf of all persons who rented cars from Hertz at airports in Nevada and were separately charged airport concession recovery fees by Hertz as part of their rental charges. The plaintiffs seek an unspecified amount of compensatory damages, restitution of any charges found to be improper and an injunction prohibiting Hertz from quoting or charging those airport fees that are alleged not to be allowed by Nevada law. The complaint also seeks attorneys' fees and costs. Relevant documents were produced, depositions were taken and pre-trial motions were filed. After the court rendered a mixed ruling on the parties' cross‑motions for summary judgment and after the Lydia Lee case was refiled against Enterprise, the parties engaged in mediation which resulted in a proposed settlement. Although the court tentatively approved the settlement in November 2010, the court denied the plaintiffs' motion for final approval of the proposed settlement in May 2011. Since that time, the plaintiffs filed a motion for class certification-which we opposed-and discovery has commenced again. A separate action is proceeding against Enterprise, National and Alamo. In May 2012, all briefing was completed on the two outstanding issues—unjust enrichment and damages. The briefing included expert reports as submitted by both sides. In October 2012, the court held a hearing on the plaintiffs’ motion for class certification. The court has since entered a stay order and the parties will again be engaging in mediation. | ||
Legal Proceedings | |||
From time to time we are a party to various legal proceedings. We are currently a defendant in numerous actions and have received numerous claims on which actions have not yet been commenced for public liability and property damage arising from the operation of motor vehicles and equipment rented from us and our licensees. The obligation for public liability and property damage on self-insured U.S. and international vehicles and equipment, as stated on our balance sheet, 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 costs. At June 30, 2013 and December 31, 2012 our liability recorded for public liability and property damage matters was $327.5 million and $332.2 million, respectively. We believe that our analysis is based on the most relevant information available, combined with reasonable assumptions, and that we may prudently rely on this information to determine the estimated liability. We note the liability is subject to significant uncertainties. The adequacy of the liability reserve is regularly monitored based on evolving accident claim history and insurance related state legislation changes. If our estimates change or if actual results differ from these assumptions, the amount of the recorded liability is adjusted to reflect these results. | 3 | Telephone Consumer Protection Act | |
For a detailed description of certain of our legal proceedings please see Note 12 of the Notes to our audited annual consolidated financial statements included in our Form 10-K under the caption "Item 8—Financial Statements and Supplementary Data." | On May 3, 2007, Fun Services of Kansas City, Inc., individually and as the representative of a class of similarly‑situated persons, v. Hertz Equipment Rental Corporation was commenced in the District Court of Wyandotte County, Kansas. The case was subsequently transferred to the District Court of Johnson County, Kansas. The Fun Services matter purports to be a class action on behalf of all persons in Kansas and throughout the United States who, on or after four years prior to the filing of the action, were sent facsimile messages of advertising materials relating to the availability of property, goods or services by HERC and who did not provide express permission for sending such faxes. The plaintiffs seek an unspecified amount of compensatory damages, attorney's fees and costs. In August 2009, the court issued an order that stayed all activity in this litigation pending a decision by the Kansas Supreme Court in Critchfield Physical Therapy, Inc. v. Taranto Group, Inc., another Telephone Consumer Protection Act case. The Kansas Supreme Court issued its decision in September 2011. Thereafter, the District Court of Johnson County lifted the stay in the Fun Services case and issued a scheduling order that addresses class certification discovery. In February 2012, HERC filed a Notice of Removal with the U.S. District Court for the District of Kansas seeking to remove the case to federal court based on federal question jurisdiction. In March 2012, the federal magistrate entered an order requiring the parties to engage in mediation and report back to her regarding their progress by June 2012. In June 2012, a mediation was held and as a result of the mediation, the parties reached an agreement in principle to settle this class action. A settlement that addresses compensation to class members, class counsel fees and the claims process was finalized by the parties’ counsel in January 2013. The court issued an order preliminarily approving the settlement in January 2013 and the final approval hearing is currently scheduled for April 2013. We have accrued our best estimate of the ultimate cost, which is not material to our financial condition. | ||
The following recent developments pertaining to legal proceedings described in our Form 10-K are furnished on a supplemental basis: | |||
In Davis Landscape, Ltd., et al. v. Hertz Equipment Rental Corporation, the Court issued a Final Approval Order and Judgment in June 2013 giving final approval to the proposed class settlement that the court had preliminarily approved in March 2013. We have accrued our best estimate of the ultimate cost of the proposed class settlement which is not material to our financial condition, results of operations or cash flows. | 4 | California Tourism Assessments | |
In Fun Services of Kansas City, Inc., et al. v. Hertz Equipment Rental Corporation, the court issued a Final Approval Order in June 2013 giving final approval to the proposed class settlement which the court had preliminarily approved in January 2013. We have accrued our best estimate of the ultimate cost of the settlement, which is not material to our financial condition, results of operations or cash flows. | We are currently a defendant in a proceeding that purports to be a class action brought by Michael Shames and Gary Gramkow against The Hertz Corporation, Dollar Thrifty Automotive Group, Inc., Avis Budget Group, Inc., Vanguard Car Rental USA, Inc., Enterprise Rent-A-Car Company, Fox Rent A Car, Inc., Coast Leasing Corp., The California Travel and Tourism Commission, and Caroline Beteta. | ||
In March 2013, the court in Janet Sobel, et al. v. The Hertz Corporation granted, in part, the plaintiffs' motion for partial summary judgment with respect to restitution and granted the plaintiffs' motion for class certification, while denying the Company's motion for partial summary judgment. The court further indicated that the plaintiffs are entitled to prejudgment interest from the date of the plaintiffs' first amended complaint. A judgment has still not been entered in the case and there are expected to be further proceedings before the district court. The amount of a judgment could potentially exceed $40 million. The Company intends to appeal or seek other appropriate relief and believes that the court's liability, damages and class certification findings will be reversed. We continue to believe the outcome of this case will not be material to our financial condition, results of operations or cash flows. | Originally filed in November of 2007, the action is pending in the United States District Court for the Southern District of California, and plaintiffs claim to represent a class of individuals or entities that purchased rental car services from a defendant at airports located in California after January 1, 2007. Plaintiffs allege that the defendants agreed to charge consumers a 2.5% tourism assessment and not to compete with respect to this assessment, while misrepresenting that this assessment is owed by consumers, rather than the rental car defendants, to the California Travel and Tourism Commission, or the “CTTC.” Plaintiffs also allege that defendants agreed to pass through to consumers a fee known as the Airport Concession Fee, which fee had previously been required to be included in the rental car defendants' individual base rates, without reducing their base rates. Based on these allegations, the amended complaint seeks treble damages, disgorgement, injunctive relief, interest, attorneys' fees and costs. Plaintiffs dropped their claims against Caroline Beteta. Plaintiffs' claims against the rental car defendants have been dismissed, except for the federal antitrust claim. In June 2010, the United States Court of Appeals for the Ninth Circuit affirmed the dismissal of the plaintiffs' antitrust case against the CTTC as a state agency immune from antitrust complaint because the California Legislature foresaw the alleged price‑fixing conspiracy that was the subject of the complaint. The plaintiffs subsequently filed a petition with the Ninth Circuit seeking a rehearing and that petition was granted. In November 2010, the Ninth Circuit withdrew its June opinion and instead held that state action immunity was improperly invoked. The Ninth Circuit reinstated the plaintiffs' antitrust claims and remanded the case to the district court for further proceedings. In May 2012, the district court issued an order preliminarily approving the settlement of this action; certifying a settlement class; certifying a class representative and lead counsel; and providing for class notice. In October 2012, the court held a final approval hearing. In November 2012, the court issued an order of final approval of the settlement of this action. One of the objectors to the settlement has filed a notice of appeal of this order with the United States Court of Appeals for the Ninth Circuit. We have accrued our best estimate of the ultimate cost which is not material to our financial condition. | ||
Aside from the above mentioned, none of the other legal proceedings described in our Form 10-K have experienced any material changes. | |||
In addition to the above mentioned and those described in our Form 10-K or in our other filings with SEC, various other legal actions, claims and governmental inquiries and proceedings are pending or may be instituted or asserted in the future against us and our subsidiaries. Other than with respect to the aggregate claims for public liability and property damage pending against us, management, based on the advice of legal counsel, does not believe that any of the matters resolved, or pending against us, are material to us and our subsidiaries taken as a whole. | 5 | Public Liability and Property Damage | |
We have established reserves for matters where we believe that the losses are probable and reasonably estimated. Other than with respect to the aggregate reserve established for claims for public liability and property damage, none of those reserves are material. For matters where we have not established a reserve, 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 the outcome of the individual litigated matters is not predictable with assurance. It is possible that certain of the actions, claims, inquiries or proceedings, including those discussed in our Form 10-K or in our other filings with SEC, could be decided unfavorably to us or any of our 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 our consolidated financial condition, results of operations or cash flows in any particular reporting period. | We are currently a defendant in numerous actions and have received numerous claims on which actions have not yet been commenced for public liability and property damage arising from the operation of motor vehicles and equipment rented from us. The obligation for public liability and property damage on self-insured U.S. and international vehicles and equipment, as stated on our balance sheet, 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. At December 31, 2012 and December 31, 2011 our liability recorded for public liability and property damage matters was $332.2 million and $281.5 million, respectively. We believe that our analysis is based on the most relevant information available, combined with reasonable assumptions, and that we may prudently rely on this information to determine the estimated liability. We note the liability is subject to significant uncertainties. The adequacy of the liability reserve is regularly monitored based on evolving accident claim history and insurance related state legislation changes. If our estimates change or if actual results differ from these assumptions, the amount of the recorded liability is adjusted to reflect these results. | ||
We intend to assert that we have meritorious defenses in the foregoing matters and we intend to defend ourselves vigorously. | |||
We have established reserves for matters where we believe that the losses are probable and reasonably estimated, including for various of the matters set forth above. Other than with respect to the aggregate reserves established for claims for public liability and property damage, none of those reserves are material. For matters, including those described above, where we have not established a reserve, 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 the outcome of the individual litigated matters is not predictable with assurance. It is possible that certain of the actions, claims, inquiries or proceedings, including those discussed above, could be decided unfavorably to us or any of our 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 our consolidated financial condition, results of operations or cash flows in any particular reporting period. | |||
Off-Balance Sheet Commitments | |||
As of December 31, 2012 and December 31, 2011, the following guarantees (including indemnification commitments) were issued and outstanding. | |||
Indemnification Obligations | |||
In the ordinary course of business, we execute 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. We regularly evaluate the probability of having to incur costs associated with these indemnification obligations and have accrued for expected losses that are probable and estimable. The types of indemnification obligations for which payments are possible include the following: | |||
Sponsors; Directors | |||
We have entered into customary indemnification agreements with Hertz Holdings, the Sponsors and Hertz Holdings' stockholders affiliated with the Sponsors, pursuant to which Hertz Holdings and Hertz will indemnify the Sponsors, Hertz Holdings' stockholders affiliated with the Sponsors and their respective affiliates, directors, officers, partners, members, employees, agents, representatives and controlling persons, against certain liabilities arising out of performance of a consulting agreement with Hertz Holdings and each of the Sponsors and certain other claims and liabilities, including liabilities arising out of financing arrangements or securities offerings. Hertz Holdings also entered into indemnification agreements with each of its directors. We do not believe that these indemnifications are reasonably likely to have a material impact on us. | |||
Environmental | |||
We have 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 we may be held responsible could be substantial. The probable expenses that we expect to incur for such matters have been accrued, and those expenses are reflected in our condensed consolidated financial statements. As of December 31, 2012 and December 31, 2011, the aggregate amounts accrued for environmental liabilities including liability for environmental indemnities, reflected in our condensed consolidated balance sheets in "Accrued liabilities" were $2.6 million and $1.5 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 we ultimately may be responsible cannot be reasonably estimated because of uncertainties with respect to factors such as our 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). |
Guarantor_and_NonGuarantor_Con
Guarantor and Non-Guarantor Condensed Consolidating Financial Statements | 6 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | |||||||||||||||||||||||||||||||||||||||
Guarantor and Non-Guarantor Condensed Consolidating Financial Statements | ||||||||||||||||||||||||||||||||||||||||
Guarantor and Non-Guarantor Condensed Consolidating Financial Statements | Guarantor and Non-Guarantor Condensed Consolidating Financial Statements | Guarantor and Non-Guarantor Condensed Consolidating Financial Statements | ||||||||||||||||||||||||||||||||||||||
The following condensed consolidating financial information presents the Condensed Consolidating Balance Sheets as of June 30, 2013 and December 31, 2012 and the Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) for the three and six month periods ended June 30, 2013 and 2012, and Statements of Cash Flows for the six months ended June 30, 2013 and 2012, of (a) The Hertz Corporation, (“the Company” or “the Parent”); (b) the Parent's subsidiaries that guarantee the Parent's indebtedness, or the Guarantor Subsidiaries; (c) the Parent's subsidiaries that do not guarantee the Parent's indebtedness, or the Non-Guarantor Subsidiaries; (d) elimination entries necessary to consolidate the Parent with the Guarantor Subsidiaries and Non-Guarantor Subsidiaries; and of (e) the Company on a consolidated basis. | The following condensed consolidating financial information presents the Condensed Consolidating Balance Sheets as of December 31, 2012 and 2011 and the Condensed Consolidating Statements of Operations, Comprehensive Income (Loss) and Cash Flows for the years ended December 31, 2012, 2011 and 2010, and Statements of Cash Flows for the years ended December 31, 2012, 2011 and 2010, of (a) The Hertz Corporation, (“the Company” or “the Parent”); (b) the Parent's subsidiaries that guarantee the Parent's indebtedness, or the Guarantor Subsidiaries; (c) the Parent's subsidiaries that do not guarantee the Parent's indebtedness, or the Non-Guarantor Subsidiaries; (d) elimination entries necessary to consolidate the Parent with the Guarantor Subsidiaries and Non-Guarantor Subsidiaries; and of (e) the Company on a consolidated basis. The Guarantor Subsidiaries are consistent with those entities which guaranteed the Company's existing indebtedness as of December 31, 2011 and December 31, 2010, with the exception of the Company's Simply Wheelz subsidiary which was sold in connection with the Advantage divestiture, as more fully described below, and therefore is not included as a guarantor of the debt in this Form 10-K. | |||||||||||||||||||||||||||||||||||||||
On December 12, 2012, pursuant to a consent agreement Hertz Holdings entered into with the Federal Trade Commission in connection with the Dollar Thrifty acquisition, we consummated the Advantage Divestiture. Prior to the Advantage Divestiture, Simply Wheelz, the legal entity associated with Advantage, had been included within these condensed consolidating financial statements as a Guarantor Subsidiary. The following condensed consolidating financial statements which include Simply Wheelz now reflects it as a Non-Guarantor Subsidiary for all periods presented. | ||||||||||||||||||||||||||||||||||||||||
In February 2013 and March 2013, we added Dollar Thrifty and certain of its subsidiaries as guarantors under certain of our debt instruments and credit facilities. The following condensed consolidating financial statements now reflects the results of this change for all periods presented. | ||||||||||||||||||||||||||||||||||||||||
Investments in subsidiaries are accounted for using the equity method for purposes of the consolidating presentation. The principal elimination entries relate to investments in subsidiaries and intercompany balances and transactions. Separate financial statements and other disclosures with respect to the Guarantor Subsidiaries have not been provided as management believes the following information is sufficient, as the Guarantor Subsidiaries are 100% owned by the Parent and all guarantees are full and unconditional and joint and several. Additionally, substantially all of the assets of the Guarantor Subsidiaries are pledged under the Senior Credit Facilities, and consequently will not be available to satisfy the claims of our general creditors. | ||||||||||||||||||||||||||||||||||||||||
Investments in subsidiaries are accounted for using the equity method for purposes of the consolidating presentation. The principal elimination entries relate to investments in subsidiaries and intercompany balances and transactions. Separate financial statements and other disclosures with respect to the Guarantor Subsidiaries have not been provided, as the Guarantor Subsidiaries are 100% owned by the Parent and all guarantees are full and unconditional and joint and several. Additionally, substantially all of the assets of the Guarantor Subsidiaries are pledged under the Senior Credit Facilities, and consequently will not be available to satisfy the claims of our general creditors. | CONDENSED CONSOLIDATING BALANCE SHEET | |||||||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | 31-Dec-12 | |||||||||||||||||||||||||||||||||||||||
30-Jun-13 | (In Thousands of Dollars) | |||||||||||||||||||||||||||||||||||||||
(In Millions of Dollars) | ||||||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | ||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | (The Hertz | Subsidiaries | Guarantor | Corporation & | ||||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | Corporation) | Subsidiaries | Subsidiaries | ||||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | ASSETS | |||||||||||||||||||||||||||||||||||||
ASSETS | Cash and cash equivalents | $ | 24,602 | $ | 2,578 | $ | 506,055 | $ | — | $ | 533,235 | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 87.5 | $ | 24.5 | $ | 371 | $ | — | $ | 483 | ||||||||||||||||||||||||||||||
Restricted cash and cash equivalents | 32,681 | 14,535 | 524,418 | — | 571,634 | |||||||||||||||||||||||||||||||||||
Restricted cash and cash equivalents | 33.7 | 17 | 342.5 | — | 393.2 | |||||||||||||||||||||||||||||||||||
Receivables, less allowance for doubtful accounts | 544,454 | 292,467 | 1,049,675 | — | 1,886,596 | |||||||||||||||||||||||||||||||||||
Receivables, less allowance for doubtful accounts | 500.8 | 482.1 | 719.3 | (46.2 | ) | 1,656.00 | ||||||||||||||||||||||||||||||||||
Due from Hertz affiliate | 1,047,986 | 59,181 | 2,199,247 | (3,293,605 | ) | 12,809 | ||||||||||||||||||||||||||||||||||
Due from Hertz affiliate | 1,042.70 | 1,842.70 | 3,691.70 | (6,576.3 | ) | 0.8 | ||||||||||||||||||||||||||||||||||
Inventories, at lower cost or market | 24,422 | 34,101 | 47,205 | — | 105,728 | |||||||||||||||||||||||||||||||||||
Inventories, at lower cost or market | 30.8 | 39.8 | 57.7 | — | 128.3 | |||||||||||||||||||||||||||||||||||
Prepaid expenses and other assets | 2,570,539 | 183,573 | 203,678 | (2,496,288 | ) | 461,502 | ||||||||||||||||||||||||||||||||||
Prepaid expenses and other assets | 2,894.70 | 244.3 | 407.2 | (2,783.0 | ) | 763.2 | ||||||||||||||||||||||||||||||||||
Revenue earning equipment, net | 104,207 | 1,734,325 | 11,069,804 | — | 12,908,336 | |||||||||||||||||||||||||||||||||||
Revenue earning equipment, net | 175.3 | 1,893.00 | 13,637.70 | — | 15,706.00 | |||||||||||||||||||||||||||||||||||
Property and equipment, net | 865,694 | 206,332 | 364,360 | — | 1,436,386 | |||||||||||||||||||||||||||||||||||
Property and equipment, net | 897.6 | 315.1 | 252.9 | — | 1,465.60 | |||||||||||||||||||||||||||||||||||
Investment in subsidiaries, net | 6,964,916 | 506,123 | — | (7,471,039 | ) | — | ||||||||||||||||||||||||||||||||||
Investment in subsidiaries, net | 6,833.10 | 1,367.90 | — | (8,201.0 | ) | — | ||||||||||||||||||||||||||||||||||
Other intangible assets, net | 74,606 | 2,352,342 | 1,605,163 | — | 4,032,111 | |||||||||||||||||||||||||||||||||||
Other intangible assets, net | 70.2 | 3,848.10 | 50.2 | — | 3,968.50 | |||||||||||||||||||||||||||||||||||
Goodwill | 106,210 | 133,923 | 1,101,739 | — | 1,341,872 | |||||||||||||||||||||||||||||||||||
Goodwill | 106.2 | 1,035.60 | 224.5 | — | 1,366.30 | |||||||||||||||||||||||||||||||||||
Total assets | $ | 12,360,317 | $ | 5,519,480 | $ | 18,671,344 | $ | (13,260,932 | ) | $ | 23,290,209 | |||||||||||||||||||||||||||||
Total assets | $ | 12,672.60 | $ | 11,110.10 | $ | 19,754.70 | $ | (17,606.5 | ) | $ | 25,930.90 | |||||||||||||||||||||||||||||
LIABILITIES AND EQUITY | ||||||||||||||||||||||||||||||||||||||||
LIABILITIES AND EQUITY | ||||||||||||||||||||||||||||||||||||||||
Due to Hertz affiliate | $ | 2,254,223 | $ | 628,275 | $ | 411,107 | $ | (3,293,605 | ) | $ | — | |||||||||||||||||||||||||||||
Due to Hertz affiliate | $ | 2,097.10 | $ | 2,498.80 | $ | 1,980.40 | $ | (6,576.3 | ) | $ | — | |||||||||||||||||||||||||||||
Accounts payable | 239,247 | 157,742 | 602,072 | — | 999,061 | |||||||||||||||||||||||||||||||||||
Accounts payable | 165.2 | 267.9 | 1,051.40 | — | 1,484.50 | |||||||||||||||||||||||||||||||||||
Accrued liabilities | 605,680 | 84,992 | 487,788 | — | 1,178,460 | |||||||||||||||||||||||||||||||||||
Accrued liabilities | 642.7 | 242.2 | 343.6 | (46.2 | ) | 1,182.30 | ||||||||||||||||||||||||||||||||||
Accrued taxes | 54,357 | 11,511 | 1,003,127 | (901,681 | ) | 167,314 | ||||||||||||||||||||||||||||||||||
Accrued taxes | 60.3 | 33.9 | 1,335.00 | (1,245.6 | ) | 183.6 | ||||||||||||||||||||||||||||||||||
Debt | 6,190,040 | 49,445 | 8,774,989 | — | 15,014,474 | |||||||||||||||||||||||||||||||||||
Debt | 7,042.30 | 68.5 | 10,283.40 | — | 17,394.20 | |||||||||||||||||||||||||||||||||||
Public liability and property damage | 99,261 | 10,390 | 222,581 | — | 332,232 | |||||||||||||||||||||||||||||||||||
Public liability and property damage | 93 | 58.5 | 176 | — | 327.5 | |||||||||||||||||||||||||||||||||||
Deferred taxes on income | — | 1,776,199 | 2,499,548 | (1,594,607 | ) | 2,681,140 | ||||||||||||||||||||||||||||||||||
Deferred taxes on income | — | 2,232.70 | 2,091.50 | (1,537.4 | ) | 2,786.80 | ||||||||||||||||||||||||||||||||||
Total liabilities | 9,442,808 | 2,718,554 | 14,001,212 | (5,789,893 | ) | 20,372,681 | ||||||||||||||||||||||||||||||||||
Total liabilities | 10,100.60 | 5,402.50 | 17,261.30 | (9,405.5 | ) | 23,358.90 | ||||||||||||||||||||||||||||||||||
Equity: | ||||||||||||||||||||||||||||||||||||||||
Equity: | ||||||||||||||||||||||||||||||||||||||||
The Hertz Corporation and Subsidiaries stockholder's equity | 2,917,509 | 2,800,926 | 4,670,113 | (7,471,039 | ) | 2,917,509 | ||||||||||||||||||||||||||||||||||
The Hertz Corporation and Subsidiaries stockholder's equity | 2,572.00 | 5,707.60 | 2,493.40 | (8,201.0 | ) | 2,572.00 | ||||||||||||||||||||||||||||||||||
Noncontrolling interest | — | — | 19 | — | 19 | |||||||||||||||||||||||||||||||||||
Noncontrolling interest | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Total equity | 2,917,509 | 2,800,926 | 4,670,132 | (7,471,039 | ) | 2,917,528 | ||||||||||||||||||||||||||||||||||
Total equity | 2,572.00 | 5,707.60 | 2,493.40 | (8,201.0 | ) | 2,572.00 | ||||||||||||||||||||||||||||||||||
Total liabilities and equity | $ | 12,360,317 | $ | 5,519,480 | $ | 18,671,344 | $ | (13,260,932 | ) | $ | 23,290,209 | |||||||||||||||||||||||||||||
Total liabilities and equity | $ | 12,672.60 | $ | 11,110.10 | $ | 19,754.70 | $ | (17,606.5 | ) | $ | 25,930.90 | |||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | ||||||||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | 31-Dec-11 | |||||||||||||||||||||||||||||||||||||||
31-Dec-12 | (In Thousands of Dollars) | |||||||||||||||||||||||||||||||||||||||
(In Millions of Dollars) | ||||||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | ||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | (The Hertz | Subsidiaries | Guarantor | Corporation & | ||||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | Corporation) | Subsidiaries | Subsidiaries | ||||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | ASSETS | |||||||||||||||||||||||||||||||||||||
ASSETS | Cash and cash equivalents | $ | 565,002 | $ | 7,385 | $ | 358,821 | $ | — | $ | 931,208 | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 24.6 | $ | 6.5 | $ | 502.1 | $ | — | $ | 533.2 | ||||||||||||||||||||||||||||||
Restricted cash and cash equivalents | 44,663 | 28,130 | 235,246 | — | 308,039 | |||||||||||||||||||||||||||||||||||
Restricted cash and cash equivalents | 32.7 | 17.1 | 521.8 | — | 571.6 | |||||||||||||||||||||||||||||||||||
Receivables, less allowance for doubtful accounts | 297,292 | 218,754 | 1,100,336 | — | 1,616,382 | |||||||||||||||||||||||||||||||||||
Receivables, less allowance for doubtful accounts | 544.5 | 444 | 924.7 | (26.6 | ) | 1,886.60 | ||||||||||||||||||||||||||||||||||
Due from Hertz affiliate | 655,411 | 65,972 | 1,194,041 | (1,915,424 | ) | — | ||||||||||||||||||||||||||||||||||
Due from Hertz affiliate | 1,048.00 | 2,023.50 | 3,491.70 | (6,550.4 | ) | 12.8 | ||||||||||||||||||||||||||||||||||
Inventories, at lower cost or market | 22,440 | 26,541 | 34,997 | — | 83,978 | |||||||||||||||||||||||||||||||||||
Inventories, at lower cost or market | 24.4 | 41.2 | 40.1 | — | 105.7 | |||||||||||||||||||||||||||||||||||
Prepaid expenses and other assets | 2,088,579 | 32,974 | 137,189 | (1,842,608 | ) | 416,134 | ||||||||||||||||||||||||||||||||||
Prepaid expenses and other assets | 2,570.50 | 277.8 | 173.3 | (2,560.1 | ) | 461.5 | ||||||||||||||||||||||||||||||||||
Revenue earning equipment, net | 167,304 | 1,505,867 | 8,432,238 | — | 10,105,409 | |||||||||||||||||||||||||||||||||||
Revenue earning equipment, net | 104.2 | 1,678.50 | 11,125.60 | — | 12,908.30 | |||||||||||||||||||||||||||||||||||
Property and equipment, net | 824,381 | 170,874 | 256,599 | — | 1,251,854 | |||||||||||||||||||||||||||||||||||
Property and equipment, net | 865.7 | 321.9 | 248.8 | — | 1,436.40 | |||||||||||||||||||||||||||||||||||
Investment in subsidiaries, net | 4,413,289 | 460,201 | — | (4,873,490 | ) | — | ||||||||||||||||||||||||||||||||||
Investment in subsidiaries, net | 6,964.90 | 1,260.90 | — | (8,225.8 | ) | — | ||||||||||||||||||||||||||||||||||
Other intangible assets, net | 94,682 | 2,363,617 | 103,935 | — | 2,562,234 | |||||||||||||||||||||||||||||||||||
Other intangible assets, net | 74.6 | 3,893.30 | 64.2 | — | 4,032.10 | |||||||||||||||||||||||||||||||||||
Goodwill | 100,221 | 67,228 | 224,645 | — | 392,094 | |||||||||||||||||||||||||||||||||||
Goodwill | 106.2 | 1,018.90 | 216.8 | — | 1,341.90 | |||||||||||||||||||||||||||||||||||
Total assets | $ | 9,273,264 | $ | 4,947,543 | $ | 12,078,047 | $ | (8,631,522 | ) | $ | 17,667,332 | |||||||||||||||||||||||||||||
Total assets | $ | 12,360.30 | $ | 10,983.60 | $ | 17,309.10 | $ | (17,362.9 | ) | $ | 23,290.10 | |||||||||||||||||||||||||||||
LIABILITIES AND EQUITY | ||||||||||||||||||||||||||||||||||||||||
LIABILITIES AND EQUITY | ||||||||||||||||||||||||||||||||||||||||
Due to Hertz affiliate | $ | 1,251,347 | $ | 266,604 | $ | 397,885 | $ | (1,915,424 | ) | $ | 412 | |||||||||||||||||||||||||||||
Due to Hertz affiliate | $ | 2,254.20 | $ | 2,421.60 | $ | 1,874.60 | $ | (6,550.4 | ) | $ | — | |||||||||||||||||||||||||||||
Accounts payable | 188,695 | 165,258 | 543,536 | — | 897,489 | |||||||||||||||||||||||||||||||||||
Accounts payable | 239.2 | 193.9 | 566 | — | 999.1 | |||||||||||||||||||||||||||||||||||
Accrued liabilities | 607,673 | 209,263 | 309,402 | — | 1,126,338 | |||||||||||||||||||||||||||||||||||
Accrued liabilities | 605.7 | 45 | 554.3 | (26.6 | ) | 1,178.40 | ||||||||||||||||||||||||||||||||||
Accrued taxes | 54,559 | 134,186 | (13,889 | ) | (11,872 | ) | 162,984 | |||||||||||||||||||||||||||||||||
Accrued taxes | 54.4 | 29.1 | 1,049.30 | (965.5 | ) | 167.3 | ||||||||||||||||||||||||||||||||||
Debt | 4,434,274 | 4,237 | 6,469,338 | — | 10,907,849 | |||||||||||||||||||||||||||||||||||
Debt | 6,190.00 | 67.7 | 8,756.80 | — | 15,014.50 | |||||||||||||||||||||||||||||||||||
Public liability and property damage | 107,881 | 14,025 | 159,628 | — | 281,534 | |||||||||||||||||||||||||||||||||||
Public liability and property damage | 99.3 | 52.8 | 180.1 | — | 332.2 | |||||||||||||||||||||||||||||||||||
Deferred taxes on income | — | 1,449,171 | 2,043,437 | (1,830,736 | ) | 1,661,872 | ||||||||||||||||||||||||||||||||||
Deferred taxes on income | — | 2,205.60 | 2,070.10 | (1,594.6 | ) | 2,681.10 | ||||||||||||||||||||||||||||||||||
Total liabilities | 6,644,429 | 2,242,744 | 9,909,337 | (3,758,032 | ) | 15,038,478 | ||||||||||||||||||||||||||||||||||
Total liabilities | 9,442.80 | 5,015.70 | 15,051.20 | (9,137.1 | ) | 20,372.60 | ||||||||||||||||||||||||||||||||||
Equity: | ||||||||||||||||||||||||||||||||||||||||
Equity: | ||||||||||||||||||||||||||||||||||||||||
The Hertz Corporation and Subsidiaries stockholder's equity | 2,628,835 | 2,704,799 | 2,168,691 | (4,873,490 | ) | 2,628,835 | ||||||||||||||||||||||||||||||||||
The Hertz Corporation and Subsidiaries stockholder's equity | 2,917.50 | 5,967.90 | 2,257.90 | (8,225.8 | ) | 2,917.50 | ||||||||||||||||||||||||||||||||||
Noncontrolling interest | — | — | 19 | — | 19 | |||||||||||||||||||||||||||||||||||
Noncontrolling interest | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Total equity | 2,628,835 | 2,704,799 | 2,168,710 | (4,873,490 | ) | 2,628,854 | ||||||||||||||||||||||||||||||||||
Total equity | 2,917.50 | 5,967.90 | 2,257.90 | (8,225.8 | ) | 2,917.50 | ||||||||||||||||||||||||||||||||||
Total liabilities and equity | $ | 9,273,264 | $ | 4,947,543 | $ | 12,078,047 | $ | (8,631,522 | ) | $ | 17,667,332 | |||||||||||||||||||||||||||||
Total liabilities and equity | $ | 12,360.30 | $ | 10,983.60 | $ | 17,309.10 | $ | (17,362.9 | ) | $ | 23,290.10 | |||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | |||||||||||||||||||||||||||||||||||||||
For the Three Months Ended June 30, 2013 | For the Year Ended December 31, 2012 | |||||||||||||||||||||||||||||||||||||||
(In Millions of Dollars) | (In Thousands of Dollars) | |||||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | Parent | Guarantor | Non- | Eliminations | The Hertz | |||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | (The Hertz | Subsidiaries | Guarantor | Corporation & | |||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | Corporation) | Subsidiaries | Subsidiaries | |||||||||||||||||||||||||||||||||||
Total revenues | $ | 1,147.00 | $ | 662.8 | $ | 1,617.50 | $ | (712.7 | ) | $ | 2,714.60 | Total revenues | $ | 4,259,049 | $ | 975,500 | $ | 6,255,039 | $ | (2,468,781 | ) | $ | 9,020,807 | |||||||||||||||||
Expenses: | Expenses: | |||||||||||||||||||||||||||||||||||||||
Direct operating | 2,384,829 | 553,099 | 1,857,860 | — | 4,795,788 | |||||||||||||||||||||||||||||||||||
Direct operating | 618.8 | 357.1 | 430.3 | (0.3 | ) | 1,405.90 | ||||||||||||||||||||||||||||||||||
Depreciation of revenue earning equipment and lease charges | 2,402,032 | 198,322 | 2,016,585 | (2,468,781 | ) | 2,148,158 | ||||||||||||||||||||||||||||||||||
Depreciation of revenue earning equipment and lease charges | 608 | 168.9 | 576.4 | (712.2 | ) | 641.1 | ||||||||||||||||||||||||||||||||||
Selling, general and administrative | 448,100 | 123,300 | 374,181 | — | 945,581 | |||||||||||||||||||||||||||||||||||
Selling, general and administrative | 122.3 | 64.7 | 88 | (0.2 | ) | 274.8 | ||||||||||||||||||||||||||||||||||
Interest expense, net of interest income | 253,437 | 39,679 | 299,770 | — | 592,886 | |||||||||||||||||||||||||||||||||||
Interest expense | 88 | 8.5 | 73.7 | — | 170.2 | |||||||||||||||||||||||||||||||||||
Other (income) expense, net | (10,656 | ) | (19 | ) | 46,217 | — | 35,542 | |||||||||||||||||||||||||||||||||
Interest income | — | (1.6 | ) | (0.4 | ) | — | (2.0 | ) | ||||||||||||||||||||||||||||||||
Total expenses | 5,477,742 | 914,381 | 4,594,613 | (2,468,781 | ) | 8,517,955 | ||||||||||||||||||||||||||||||||||
Other (income) expense, net | 14.5 | (2.2 | ) | (13.4 | ) | — | (1.1 | ) | ||||||||||||||||||||||||||||||||
Income (loss) before income taxes and equity in earnings (losses) of subsidiaries | (1,218,693 | ) | 61,119 | 1,660,426 | — | 502,852 | ||||||||||||||||||||||||||||||||||
Total expenses | 1,451.60 | 595.4 | 1,154.60 | (712.7 | ) | 2,488.90 | ||||||||||||||||||||||||||||||||||
(Provision) benefit for taxes on income | 476,444 | (44,846 | ) | (658,671 | ) | — | (227,073 | ) | ||||||||||||||||||||||||||||||||
Income (loss) before income taxes and equity in earnings (losses) of subsidiaries | (304.6 | ) | 67.4 | 462.9 | — | 225.7 | ||||||||||||||||||||||||||||||||||
Equity in earnings (losses) of subsidiaries (net of tax) | 1,018,028 | 45,922 | — | (1,063,950 | ) | — | ||||||||||||||||||||||||||||||||||
(Provision) benefit for taxes on income | 109.3 | (25.2 | ) | (179.9 | ) | — | (95.8 | ) | ||||||||||||||||||||||||||||||||
Net income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder | $ | 275,779 | $ | 62,195 | $ | 1,001,755 | $ | (1,063,950 | ) | $ | 275,779 | |||||||||||||||||||||||||||||
Equity in earnings (losses) of subsidiaries (net of tax) | 325.2 | 56.8 | — | (382.0 | ) | — | ||||||||||||||||||||||||||||||||||
Net income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder | $ | 129.9 | $ | 99 | $ | 283 | $ | (382.0 | ) | $ | 129.9 | CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | ||||||||||||||||||||||||||||
For the Year Ended December 31, 2011 | ||||||||||||||||||||||||||||||||||||||||
(In Thousands of Dollars) | ||||||||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | ||||||||||||||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2013 | ||||||||||||||||||||||||||||||||||||||||
(In Millions of Dollars) | ||||||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | ||||||||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | |||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | Corporation) | Subsidiaries | Subsidiaries | |||||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | Total revenues | $ | 4,068,310 | $ | 809,093 | $ | 5,733,827 | $ | (2,312,850 | ) | $ | 8,298,380 | |||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | ||||||||||||||||||||||||||||||||||||||
Total revenues | $ | 2,201.60 | $ | 1,284.90 | $ | 3,120.60 | $ | (1,455.9 | ) | $ | 5,151.20 | Expenses: | ||||||||||||||||||||||||||||
Expenses: | Direct operating | 2,262,371 | 497,053 | 1,806,954 | — | 4,566,378 | ||||||||||||||||||||||||||||||||||
Direct operating | 1,231.70 | 710 | 815.9 | (0.5 | ) | 2,757.10 | Depreciation of revenue earning equipment and lease charges | 1,996,733 | 180,807 | 2,041,049 | (2,312,850 | ) | 1,905,739 | |||||||||||||||||||||||||||
Depreciation of revenue earning equipment and lease charges | 1,269.40 | 321.3 | 1,092.60 | (1,455.2 | ) | 1,228.10 | Selling, general and administrative | 326,794 | 85,414 | 332,909 | — | 745,117 | ||||||||||||||||||||||||||||
Selling, general and administrative | 229.5 | 124.4 | 172.6 | (0.2 | ) | 526.3 | Interest expense, net of interest income | 299,099 | 27,226 | 318,378 | — | 644,703 | ||||||||||||||||||||||||||||
Interest expense | 169.1 | 18.8 | 145.6 | — | 333.5 | Other (income) expense, net | 62,396 | (18 | ) | 170 | — | 62,548 | ||||||||||||||||||||||||||||
Interest income | — | (3.1 | ) | (0.7 | ) | — | (3.8 | ) | Total expenses | 4,947,393 | 790,482 | 4,499,460 | (2,312,850 | ) | 7,924,485 | |||||||||||||||||||||||||
Other (income) expense, net | 14.3 | (2.2 | ) | (13.8 | ) | — | (1.7 | ) | Income (loss) before income taxes, noncontrolling interest and equity in earnings (losses) of subsidiaries | (879,083 | ) | 18,611 | 1,234,367 | — | 373,895 | |||||||||||||||||||||||||
Total expenses | 2,914.00 | 1,169.20 | 2,212.20 | (1,455.9 | ) | 4,839.50 | (Provision) benefit for taxes on income (loss) | 342,469 | (10,016 | ) | (476,299 | ) | — | (143,846 | ) | |||||||||||||||||||||||||
Income (loss) before income taxes and equity in earnings (losses) of subsidiaries | (712.4 | ) | 115.7 | 908.4 | — | 311.7 | Equity in earnings (losses) of subsidiaries (net of tax) | 747,103 | 26,215 | — | (773,318 | ) | — | |||||||||||||||||||||||||||
(Provision) benefit for taxes on income | 257.5 | (43.1 | ) | (369.7 | ) | — | (155.3 | ) | Net income (loss) | 210,489 | 34,810 | 758,068 | (773,318 | ) | 230,049 | |||||||||||||||||||||||||
Equity in earnings (losses) of subsidiaries (net of tax) | 611.3 | 111.6 | — | (722.9 | ) | — | Less: Net income attributable to noncontrolling interest | — | — | (19,560 | ) | — | (19,560 | ) | ||||||||||||||||||||||||||
Net income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder | $ | 156.4 | $ | 184.2 | $ | 538.7 | $ | (722.9 | ) | $ | 156.4 | Net income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder | $ | 210,489 | $ | 34,810 | $ | 738,508 | $ | (773,318 | ) | $ | 210,489 | |||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | ||||||||||||||||||||||||||||||||||||||||
For the Year Ended December 31, 2010 | ||||||||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | (In Thousands of Dollars) | |||||||||||||||||||||||||||||||||||||||
For the Three Months Ended June 30, 2012 | ||||||||||||||||||||||||||||||||||||||||
(In Millions of Dollars) | ||||||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | ||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | (The Hertz | Subsidiaries | Guarantor | Corporation & | ||||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | Corporation) | Subsidiaries | Subsidiaries | ||||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | Total revenues | $ | 3,961,435 | $ | 701,264 | $ | 5,350,348 | $ | (2,450,513 | ) | $ | 7,562,534 | ||||||||||||||||||||||||||
Total revenues | $ | 1,074.90 | $ | 233.1 | $ | 1,493.10 | $ | (576.0 | ) | $ | 2,225.10 | |||||||||||||||||||||||||||||
Expenses: | ||||||||||||||||||||||||||||||||||||||||
Expenses: | ||||||||||||||||||||||||||||||||||||||||
Direct operating | 609.4 | 141.1 | 438.4 | — | 1,188.90 | Direct operating | 2,217,864 | 452,674 | 1,612,856 | — | 4,283,394 | |||||||||||||||||||||||||||||
Depreciation of revenue earning equipment and lease charges | 560.6 | 48 | 487.2 | (576.0 | ) | 519.8 | Depreciation of revenue earning equipment and lease charges | 1,938,416 | 200,252 | 2,179,992 | (2,450,513 | ) | 1,868,147 | |||||||||||||||||||||||||||
Selling, general and administrative | 94.4 | 31.4 | 80.8 | — | 206.6 | Selling, general and administrative | 320,192 | 67,739 | 276,511 | — | 664,442 | |||||||||||||||||||||||||||||
Interest expense | 56 | 9.1 | 74.2 | — | 139.3 | Interest expense, net of interest income | 297,276 | 20,068 | 396,880 | — | 714,224 | |||||||||||||||||||||||||||||
Interest income | — | (0.2 | ) | (0.3 | ) | — | (0.5 | ) | Other (income) expense, net | 9,915 | (3 | ) | (9,907 | ) | — | 5 | ||||||||||||||||||||||||
Other (income) expense, net | — | — | (0.6 | ) | — | (0.6 | ) | Total expenses | 4,783,663 | 740,730 | 4,456,332 | (2,450,513 | ) | 7,530,212 | ||||||||||||||||||||||||||
Total expenses | 1,320.40 | 229.4 | 1,079.70 | (576.0 | ) | 2,053.50 | Income (loss) before income taxes, noncontrolling interest and equity in earnings (losses) of subsidiaries | (822,228 | ) | (39,466 | ) | 894,016 | — | 32,322 | ||||||||||||||||||||||||||
Income (loss) before income taxes noncontrolling interest and equity in earnings (losses) of subsidiaries | (245.5 | ) | 3.7 | 413.4 | — | 171.6 | (Provision) benefit for taxes on income (loss) | 314,692 | 10,718 | (358,732 | ) | — | (33,322 | ) | ||||||||||||||||||||||||||
(Provision) benefit for taxes on income | 90.7 | (1.3 | ) | (160.1 | ) | — | (70.7 | ) | Equity in earnings (losses) of subsidiaries (net of tax) | 489,153 | (5,268 | ) | — | (483,885 | ) | — | ||||||||||||||||||||||||
Equity in earnings (losses) of subsidiaries (net of tax) | 255.7 | (33.8 | ) | — | (221.9 | ) | — | Net income (loss) | (18,383 | ) | (34,016 | ) | 535,284 | (483,885 | ) | (1,000 | ) | |||||||||||||||||||||||
Net income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder | $ | 100.9 | $ | (31.4 | ) | $ | 253.3 | $ | (221.9 | ) | $ | 100.9 | Less: Net income attributable to noncontrolling interest | — | — | (17,383 | ) | — | (17,383 | ) | ||||||||||||||||||||
Net income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder | $ | (18,383 | ) | $ | (34,016 | ) | $ | 517,901 | $ | (483,885 | ) | $ | (18,383 | ) | ||||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | ||||||||||||||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2012 | ||||||||||||||||||||||||||||||||||||||||
(In Millions of Dollars) | ||||||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) | |||||||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | For the Year Ended December 31, 2012 | ||||||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | (In Thousands of Dollars) | |||||||||||||||||||||||||||||||||||||
Total revenues | $ | 2,042.90 | $ | 442.9 | $ | 2,834.30 | $ | (1,134.0 | ) | $ | 4,186.10 | |||||||||||||||||||||||||||||
Expenses: | Parent | Guarantor | Non- | Eliminations | The Hertz | |||||||||||||||||||||||||||||||||||
Direct operating | 1,181.20 | 274.4 | 847.5 | — | 2,303.10 | (The Hertz | Subsidiaries | Guarantor | Corporation & | |||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | ||||||||||||||||||||||||||||||||||||||
Depreciation of revenue earning equipment and lease charges | 1,099.30 | 92.4 | 977.2 | (1,134.0 | ) | 1,034.90 | Net income (loss) | $ | 275,779 | $ | 62,195 | $ | 1,001,755 | $ | (1,063,950 | ) | $ | 275,779 | ||||||||||||||||||||||
Selling, general and administrative | 198.6 | 56.9 | 158.8 | — | 414.3 | Other comprehensive income, net of tax | 1,522 | 121 | 6,816 | (6,937 | ) | 1,522 | ||||||||||||||||||||||||||||
Interest expense | 119.6 | 19 | 150.2 | — | 288.8 | Comprehensive income (loss) | $ | 277,301 | $ | 62,316 | $ | 1,008,571 | $ | (1,070,887 | ) | $ | 277,301 | |||||||||||||||||||||||
Interest income | (0.1 | ) | (0.4 | ) | (1.1 | ) | — | (1.6 | ) | |||||||||||||||||||||||||||||||
Other (income) expense, net | — | — | (1.0 | ) | — | (1.0 | ) | CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) | ||||||||||||||||||||||||||||||||
For the Year Ended December 31, 2011 | ||||||||||||||||||||||||||||||||||||||||
Total expenses | 2,598.60 | 442.3 | 2,131.60 | (1,134.0 | ) | 4,038.50 | (In Thousands of Dollars) | |||||||||||||||||||||||||||||||||
Income (loss) before income taxes noncontrolling interest and equity in earnings (losses) of subsidiaries | (555.7 | ) | 0.6 | 702.7 | — | 147.6 | ||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | ||||||||||||||||||||||||||||||||||||
(Provision) benefit for taxes on income | 201.9 | (0.6 | ) | (296.2 | ) | — | (94.9 | ) | (The Hertz | Subsidiaries | Guarantor | Corporation & | ||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | ||||||||||||||||||||||||||||||||||||||
Equity in earnings (losses) of subsidiaries (net of tax) | 406.5 | (22.6 | ) | — | (383.9 | ) | — | Net income (loss) | $ | 210,489 | $ | 34,810 | $ | 758,068 | $ | (773,318 | ) | $ | 230,049 | |||||||||||||||||||||
Net income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder | $ | 52.7 | $ | (22.6 | ) | $ | 406.5 | $ | (383.9 | ) | $ | 52.7 | Other comprehensive income, net of tax | (66,237 | ) | — | (34,619 | ) | 34,619 | (66,237 | ) | |||||||||||||||||||
Comprehensive income (loss) | 144,252 | 34,810 | 723,449 | (738,699 | ) | 163,812 | ||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) | ||||||||||||||||||||||||||||||||||||||||
For the Three Months Ended June 30, 2013 | Less: Comprehensive income attributable to noncontrolling interest | — | — | (19,560 | ) | — | (19,560 | ) | ||||||||||||||||||||||||||||||||
(In Millions of Dollars) | ||||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder | $ | 144,252 | $ | 34,810 | $ | 703,889 | $ | (738,699 | ) | $ | 144,252 | |||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | ||||||||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) | ||||||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | For the Year Ended December 31, 2010 | |||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 129.9 | $ | 99 | $ | 283 | $ | (382.0 | ) | $ | 129.9 | (In Thousands of Dollars) | ||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | (22.2 | ) | (3.2 | ) | (24.4 | ) | 27.6 | (22.2 | ) | |||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | ||||||||||||||||||||||||||||||||||||
Comprehensive income (loss) | $ | 107.7 | $ | 95.8 | $ | 258.6 | $ | (354.4 | ) | $ | 107.7 | (The Hertz | Subsidiaries | Guarantor | Corporation & | |||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | ||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | (18,383 | ) | $ | (34,016 | ) | $ | 535,284 | $ | (483,885 | ) | $ | (1,000 | ) | ||||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) | ||||||||||||||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2013 | Other comprehensive income, net of tax | 41,154 | — | 28,427 | (28,427 | ) | 41,154 | |||||||||||||||||||||||||||||||||
(In Millions of Dollars) | ||||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss) | 22,771 | (34,016 | ) | 563,711 | (512,312 | ) | 40,154 | |||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | Less: Comprehensive income attributable to noncontrolling interest | — | — | (17,383 | ) | — | (17,383 | ) | ||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | |||||||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | Comprehensive income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder | $ | 22,771 | $ | (34,016 | ) | $ | 546,328 | $ | (512,312 | ) | $ | 22,771 | |||||||||||||||||||||||||
Net income (loss) | $ | 156.4 | $ | 184.2 | $ | 538.7 | $ | (722.9 | ) | $ | 156.4 | |||||||||||||||||||||||||||||
Other comprehensive income, net of tax | (46.5 | ) | (0.4 | ) | (51.3 | ) | 51.8 | (46.4 | ) | |||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss) | 109.9 | 183.8 | 487.4 | (671.1 | ) | 110 | For the Year Ended December 31, 2012 | |||||||||||||||||||||||||||||||||
(In Thousands of Dollars) | ||||||||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) | ||||||||||||||||||||||||||||||||||||||||
For the Three Months Ended June 30, 2012 | Parent | Guarantor | Non- | Eliminations | The Hertz | |||||||||||||||||||||||||||||||||||
(In Millions of Dollars) | (The Hertz | Subsidiaries | Guarantor | Corporation & | ||||||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | ||||||||||||||||||||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 1,677,648 | $ | 690,292 | $ | 1,155,789 | $ | (775,317 | ) | $ | 2,748,412 | |||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | ||||||||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | Cash flows from investing activities: | ||||||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | Net change in restricted cash and cash equivalents | 11,981 | 13,596 | (287,182 | ) | — | (261,605 | ) | ||||||||||||||||||||||||||||||
Net income (loss) | $ | 100.9 | $ | (31.4 | ) | $ | 253.3 | $ | (221.9 | ) | $ | 100.9 | ||||||||||||||||||||||||||||
Revenue earning equipment expenditures | (88,120 | ) | (763,610 | ) | (8,761,509 | ) | — | (9,613,239 | ) | |||||||||||||||||||||||||||||||
Other comprehensive income, net of tax | (42.0 | ) | — | (45.6 | ) | 45.6 | (42.0 | ) | ||||||||||||||||||||||||||||||||
Proceeds from disposal of revenue earning equipment | 79,390 | 276,342 | 6,769,364 | — | 7,125,096 | |||||||||||||||||||||||||||||||||||
Comprehensive income (loss) | 58.9 | (31.4 | ) | 207.7 | (176.3 | ) | 58.9 | |||||||||||||||||||||||||||||||||
Property and equipment expenditures | (173,053 | ) | (32,022 | ) | (107,711 | ) | — | (312,786 | ) | |||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) | Proceeds from disposal of property and equipment | 67,370 | 11,839 | 58,485 | — | 137,694 | ||||||||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2012 | ||||||||||||||||||||||||||||||||||||||||
(In Millions of Dollars) | Capital contributions to subsidiaries | (4,267,118 | ) | — | — | 4,267,118 | — | |||||||||||||||||||||||||||||||||
Return of capital from subsidiaries | 1,829,256 | — | — | (1,829,256 | ) | — | ||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | ||||||||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | Loan to Parent From Non-Guarantor | — | — | (385,108 | ) | 385,108 | — | ||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | ||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 52.7 | $ | (22.6 | ) | $ | 406.5 | $ | (383.9 | ) | $ | 52.7 | Acquisitions, net of cash acquired | (1,708,520 | ) | (196,648 | ) | — | — | (1,905,168 | ) | |||||||||||||||||||
Other comprehensive income, net of tax | (9.6 | ) | — | (16.4 | ) | 16.4 | (9.6 | ) | Proceeds from disposal of business | — | — | 84,497 | — | 84,497 | ||||||||||||||||||||||||||
Comprehensive income (loss) | 43.1 | (22.6 | ) | 390.1 | (367.5 | ) | 43.1 | Other investing activities | — | — | (1,779 | ) | — | (1,779 | ) | |||||||||||||||||||||||||
Net cash provided by (used in) investing activities | (4,248,814 | ) | (690,503 | ) | (2,630,943 | ) | 2,822,970 | (4,747,290 | ) | |||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | Cash flows from financing activities: | |||||||||||||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2013 | ||||||||||||||||||||||||||||||||||||||||
(In Millions of Dollars) | Proceeds from issuance of long-term debt | 2,210,000 | — | 27,280 | — | 2,237,280 | ||||||||||||||||||||||||||||||||||
Payment of long-term debt | (650,407 | ) | (18 | ) | (301,719 | ) | — | (952,144 | ) | |||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | Short-term borrowings: | |||||||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | |||||||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | Proceeds | — | — | 438,387 | — | 438,387 | ||||||||||||||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | (365.7 | ) | $ | 425.1 | $ | 1,811.90 | $ | (405.3 | ) | $ | 1,466.00 | ||||||||||||||||||||||||||||
Payments | (26,775 | ) | — | (1,253,368 | ) | — | (1,280,143 | ) | ||||||||||||||||||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||||||||||||||||||
Net change in restricted cash and cash equivalents | (1.0 | ) | 0.2 | 176.2 | — | 175.4 | Proceeds (payments) under the revolving lines of credit, net | 220,000 | (1,262 | ) | 1,054,426 | — | 1,273,164 | |||||||||||||||||||||||||||
Revenue earning equipment expenditures | (87.9 | ) | (347.7 | ) | (6,389.9 | ) | — | (6,825.5 | ) | Capital contributions received from parent | — | — | 4,267,118 | (4,267,118 | ) | — | ||||||||||||||||||||||||
Proceeds from disposal of revenue earning equipment | 47.7 | 16.9 | 3,678.20 | — | 3,742.80 | Loan to Parent From Non-Guarantor | 385,108 | — | — | (385,108 | ) | — | ||||||||||||||||||||||||||||
Property and equipment expenditures | (99.1 | ) | (18.0 | ) | (51.0 | ) | — | (168.1 | ) | Payment of dividends and return of capital | — | — | (2,604,573 | ) | 2,604,573 | — | ||||||||||||||||||||||||
Proceeds from disposal of property and equipment | 24.6 | 5.5 | 12.4 | — | 42.5 | Dividends paid | (25,000 | ) | — | — | — | (25,000 | ) | |||||||||||||||||||||||||||
Capital contributions to subsidiaries | (485.7 | ) | — | — | 485.7 | — | Proceeds from employee stock purchase plan | 4,275 | — | — | — | 4,275 | ||||||||||||||||||||||||||||
Return of capital from subsidiaries | 651 | — | — | (651.0 | ) | — | Loan with Hertz Global Holdings, Inc. | (13,220 | ) | — | — | — | (13,220 | ) | ||||||||||||||||||||||||||
Loan to Parent/Guarantor from Non-Guarantor | — | — | 57 | (57.0 | ) | — | Purchase of noncontrolling interest | (38,000 | ) | — | — | — | (38,000 | ) | ||||||||||||||||||||||||||
Acquisitions, net of cash acquired | — | (2.8 | ) | (226.4 | ) | — | (229.2 | ) | Payment of financing costs | (35,215 | ) | (3,316 | ) | (10,902 | ) | — | (49,433 | ) | ||||||||||||||||||||||
Proceeds from disposal of business | — | — | — | — | — | Net cash provided by (used in) financing activities | 2,030,766 | (4,596 | ) | 1,616,649 | (2,047,653 | ) | 1,595,166 | |||||||||||||||||||||||||||
Other investing activities | — | — | (2.0 | ) | — | (2.0 | ) | Effect of foreign exchange rate changes on cash and cash equivalents | — | — | 5,739 | — | 5,739 | |||||||||||||||||||||||||||
Net cash provided by (used in) investing activities | 49.6 | (345.9 | ) | (2,745.5 | ) | (222.3 | ) | (3,264.1 | ) | Net change in cash and cash equivalents during the period | (540,400 | ) | (4,807 | ) | 147,234 | — | (397,973 | ) | ||||||||||||||||||||||
Cash flows from financing activities: | Cash and cash equivalents at beginning of period | 565,002 | 7,385 | 358,821 | — | 931,208 | ||||||||||||||||||||||||||||||||||
Proceeds from issuance of long-term debt | 250 | — | 954.4 | — | 1,204.40 | Cash and cash equivalents at end of period | $ | 24,602 | $ | 2,578 | $ | 506,055 | $ | — | $ | 533,235 | ||||||||||||||||||||||||
Payment of long-term debt | (22.8 | ) | — | (297.9 | ) | — | (320.7 | ) | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | |||||||||||||||||||||||||||||||
For the Year Ended December 31, 2011 | ||||||||||||||||||||||||||||||||||||||||
Short-term borrowings: | (In Thousands of Dollars) | |||||||||||||||||||||||||||||||||||||||
Proceeds | — | — | 332 | — | 332 | |||||||||||||||||||||||||||||||||||
Payments | — | — | (435.9 | ) | — | (435.9 | ) | Parent | Guarantor | Non- | Eliminations | The Hertz | ||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | |||||||||||||||||||||||||||||||||||||
Proceeds under the revolving lines of credit | 1,360.00 | 1.6 | 2,318.50 | — | 3,680.10 | Corporation) | Subsidiaries | Subsidiaries | ||||||||||||||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 1,000,597 | $ | 773,170 | $ | 1,038,124 | $ | (553,370 | ) | $ | 2,258,521 | |||||||||||||||||||||||||||||
Payments under the revolving lines of credit | (735.0 | ) | (5.0 | ) | (1,477.9 | ) | — | (2,217.9 | ) | |||||||||||||||||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||||||||||||||||||
Capital contributions received from parent | — | — | 485.7 | (485.7 | ) | — | ||||||||||||||||||||||||||||||||||
Net change in restricted cash and cash equivalents | (28,570 | ) | (2,662 | ) | (70,534 | ) | — | (101,766 | ) | |||||||||||||||||||||||||||||||
Loan to Parent/Guarantor from Non-Guarantor | — | (57.0 | ) | — | 57 | — | ||||||||||||||||||||||||||||||||||
Revenue earning equipment expenditures | (142,134 | ) | (670,056 | ) | (8,642,121 | ) | — | (9,454,311 | ) | |||||||||||||||||||||||||||||||
Payment of dividends and return of capital | — | — | (1,056.3 | ) | 1,056.30 | — | ||||||||||||||||||||||||||||||||||
Proceeds from disposal of revenue earning equipment | 163,330 | 170,522 | 7,516,590 | — | 7,850,442 | |||||||||||||||||||||||||||||||||||
Dividends paid to Parent | (479.7 | ) | — | — | — | (479.7 | ) | |||||||||||||||||||||||||||||||||
Property and equipment expenditures | (189,562 | ) | (29,696 | ) | (62,437 | ) | — | (281,695 | ) | |||||||||||||||||||||||||||||||
Proceeds from employee stock purchase plan | 2.4 | — | — | — | 2.4 | |||||||||||||||||||||||||||||||||||
Proceeds from disposal of property and equipment | 23,952 | 9,263 | 20,599 | — | 53,814 | |||||||||||||||||||||||||||||||||||
Loan with Hertz Global Holdings, Inc. | 12 | — | — | — | 12 | |||||||||||||||||||||||||||||||||||
Capital contributions to subsidiaries | (3,549,088 | ) | — | — | 3,549,088 | — | ||||||||||||||||||||||||||||||||||
Payment of financing costs | (7.9 | ) | (0.8 | ) | (11.9 | ) | — | (20.6 | ) | |||||||||||||||||||||||||||||||
Return of capital from subsidiaries | 2,590,025 | — | — | (2,590,025 | ) | — | ||||||||||||||||||||||||||||||||||
Net cash provided by (used in) financing activities | 379 | (61.2 | ) | 810.7 | 627.6 | 1,756.10 | ||||||||||||||||||||||||||||||||||
Loan to Parent from Non-Guarantor | — | — | (490,273 | ) | 490,273 | — | ||||||||||||||||||||||||||||||||||
Effect of foreign exchange rate changes on cash and cash equivalents | — | — | (8.2 | ) | — | (8.2 | ) | |||||||||||||||||||||||||||||||||
Acquisitions, net of cash acquired | (214,384 | ) | (2,100 | ) | (10,597 | ) | — | (227,081 | ) | |||||||||||||||||||||||||||||||
Net change in cash and cash equivalents during the period | 62.9 | 18 | (131.1 | ) | — | (50.2 | ) | |||||||||||||||||||||||||||||||||
Purchase of short-term investments, net | (32,891 | ) | — | — | — | (32,891 | ) | |||||||||||||||||||||||||||||||||
Cash and cash equivalents at beginning of period | 24.6 | 6.5 | 502.1 | — | 533.2 | |||||||||||||||||||||||||||||||||||
Other investing activities | — | (13,602 | ) | 14,188 | — | 586 | ||||||||||||||||||||||||||||||||||
Cash and cash equivalents at end of period | $ | 87.5 | $ | 24.5 | $ | 371 | $ | — | $ | 483 | ||||||||||||||||||||||||||||||
Net cash provided by (used in) investing activities | (1,379,322 | ) | (538,331 | ) | (1,724,585 | ) | 1,449,336 | (2,192,902 | ) | |||||||||||||||||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | Proceeds from issuance of long-term debt | 2,455,309 | — | 607,170 | — | 3,062,479 | ||||||||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2012 | ||||||||||||||||||||||||||||||||||||||||
(In Millions of Dollars) | Payment of long-term debt | (3,596,295 | ) | (17 | ) | (52,988 | ) | — | (3,649,300 | ) | ||||||||||||||||||||||||||||||
Short-term borrowings: | ||||||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | Proceeds | — | — | 460,890 | — | 460,890 | ||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | |||||||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | Payments | (29,224 | ) | — | (1,164,832 | ) | — | (1,194,056 | ) | |||||||||||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | (219.0 | ) | $ | 334.2 | $ | 1,409.30 | $ | (341.5 | ) | $ | 1,183.00 | ||||||||||||||||||||||||||||
Proceeds (payments) under the revolving lines of credit, net | (29,128 | ) | (229,778 | ) | 201,577 | — | (57,329 | ) | ||||||||||||||||||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interest | — | — | (23,100 | ) | — | (23,100 | ) | |||||||||||||||||||||||||||||||||
Net change in restricted cash and cash equivalents | 12.6 | 18.2 | 99.3 | — | 130.1 | |||||||||||||||||||||||||||||||||||
Capital contributions received from parent | — | — | 3,549,088 | (3,549,088 | ) | — | ||||||||||||||||||||||||||||||||||
Revenue earning equipment expenditures | (73.8 | ) | (334.1 | ) | (5,303.1 | ) | — | (5,711.0 | ) | |||||||||||||||||||||||||||||||
Payment of dividends and return of capital | (22,950 | ) | — | (3,143,395 | ) | 3,143,395 | (22,950 | ) | ||||||||||||||||||||||||||||||||
Proceeds from disposal of revenue earning equipment | 54.4 | 162.6 | 3,391.30 | — | 3,608.30 | |||||||||||||||||||||||||||||||||||
Proceeds from employee stock purchase plan | 3,577 | — | — | — | 3,577 | |||||||||||||||||||||||||||||||||||
Property and equipment expenditures | (80.2 | ) | (24.2 | ) | (32.8 | ) | — | (137.2 | ) | |||||||||||||||||||||||||||||||
Loan to Parent from Non-Guarantor | 490,273 | — | — | (490,273 | ) | — | ||||||||||||||||||||||||||||||||||
Proceeds from disposal of property and equipment | 44.3 | 4.2 | 7.9 | — | 56.4 | |||||||||||||||||||||||||||||||||||
Loan from Hertz Global Holdings, Inc. | (984 | ) | — | — | — | (984 | ) | |||||||||||||||||||||||||||||||||
Capital contributions to subsidiaries | (2,215.9 | ) | — | — | 2,215.90 | — | ||||||||||||||||||||||||||||||||||
Payment of financing costs | (81,229 | ) | (2,817 | ) | (7,436 | ) | — | (91,482 | ) | |||||||||||||||||||||||||||||||
Return of capital from subsidiaries | 2,220.60 | — | — | (2,220.6 | ) | — | ||||||||||||||||||||||||||||||||||
Net cash provided by (used in) financing activities | (810,651 | ) | (232,612 | ) | 426,974 | (895,966 | ) | (1,512,255 | ) | |||||||||||||||||||||||||||||||
Acquisitions, net of cash acquired | — | (161.8 | ) | — | — | (161.8 | ) | |||||||||||||||||||||||||||||||||
Effect of foreign exchange rate changes on cash and cash equivalents | — | — | 3,838 | — | 3,838 | |||||||||||||||||||||||||||||||||||
Loan to Parent from Non-Guarantor | — | — | (18.3 | ) | 18.3 | — | ||||||||||||||||||||||||||||||||||
Net decrease in cash and cash equivalents during the period | (1,189,376 | ) | 2,227 | (255,649 | ) | — | (1,442,798 | ) | ||||||||||||||||||||||||||||||||
Other investing activities | — | — | (0.6 | ) | — | (0.6 | ) | |||||||||||||||||||||||||||||||||
Cash and cash equivalents at beginning of period | 1,754,378 | 5,158 | 614,470 | — | 2,374,006 | |||||||||||||||||||||||||||||||||||
Net cash provided by (used in) investing activities | (38.0 | ) | (335.1 | ) | (1,856.3 | ) | 13.6 | (2,215.8 | ) | |||||||||||||||||||||||||||||||
Cash and cash equivalents at end of period | $ | 565,002 | $ | 7,385 | $ | 358,821 | $ | — | $ | 931,208 | ||||||||||||||||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||||||||||||||||||
Proceeds from issuance of long-term debt | 260 | — | 10.5 | — | 270.5 | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||||||||||||||||||||||||||||||
For the Year Ended December 31, 2010 | ||||||||||||||||||||||||||||||||||||||||
Payment of long-term debt | (637.3 | ) | — | (5.8 | ) | — | (643.1 | ) | (In Thousands of Dollars) | |||||||||||||||||||||||||||||||
Short-term borrowings: | ||||||||||||||||||||||||||||||||||||||||
Proceeds | — | — | 246.7 | — | 246.7 | Parent | Guarantor | Non- | Eliminations | The Hertz | ||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | |||||||||||||||||||||||||||||||||||||
Payments | (26.8 | ) | — | (629.4 | ) | — | (656.2 | ) | Corporation) | Subsidiaries | Subsidiaries | |||||||||||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 337,055 | $ | 88,941 | $ | 2,193,486 | $ | (381,555 | ) | $ | 2,237,927 | |||||||||||||||||||||||||||||
Proceeds under the revolving lines of credit | 1,360.00 | 1.9 | 2,173.60 | — | 3,535.50 | |||||||||||||||||||||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||||||||||||||||||
Payments under the revolving lines of credit | (950.0 | ) | (2.9 | ) | (1,038.8 | ) | — | (1,991.7 | ) | Net change in restricted cash and cash equivalents | 19,932 | (17,514 | ) | 158,098 | — | 160,516 | ||||||||||||||||||||||||
Purchase of noncontrolling interest | (38.0 | ) | — | — | — | (38.0 | ) | Revenue earning equipment expenditures | (188,057 | ) | (96,452 | ) | (8,156,363 | ) | — | (8,440,872 | ) | |||||||||||||||||||||||
Capital contributions received from parent | — | — | 2,215.90 | (2,215.9 | ) | — | Proceeds from disposal of revenue earning equipment | 169,451 | 75,139 | 7,273,856 | — | 7,518,446 | ||||||||||||||||||||||||||||
Payment of dividends and return of capital | (12.5 | ) | — | (2,562.1 | ) | 2,562.10 | (12.5 | ) | Property and equipment expenditures | (92,415 | ) | (14,137 | ) | (72,657 | ) | — | (179,209 | ) | ||||||||||||||||||||||
Repayment of Loan to Parent from Non-Guarantor | 18.3 | — | — | (18.3 | ) | — | Proceeds from disposal of property and equipment | 4,311 | 10,416 | 24,178 | — | 38,905 | ||||||||||||||||||||||||||||
Proceeds from employee stock purchase plan | 2 | — | — | — | 2 | Capital contributions to subsidiaries | (1,544,332 | ) | — | — | 1,544,332 | — | ||||||||||||||||||||||||||||
Loan from Hertz Global Holdings, Inc. | (13.9 | ) | — | — | — | (13.9 | ) | Return of capital from subsidiaries | 1,877,095 | — | — | (1,877,095 | ) | — | ||||||||||||||||||||||||||
Payment of financing costs | (4.2 | ) | (1.5 | ) | (1.2 | ) | — | (6.9 | ) | Acquisitions, net of cash acquired | (35 | ) | (43,789 | ) | (3,747 | ) | — | (47,571 | ) | |||||||||||||||||||||
Net cash provided by (used in) financing activities | (42.4 | ) | (2.5 | ) | 409.4 | 327.9 | 692.4 | Purchase of short-term investments, net | 3,183 | 94 | 214 | — | 3,491 | |||||||||||||||||||||||||||
Effect of foreign exchange rate changes on cash and cash equivalents | — | — | (4.8 | ) | — | (4.8 | ) | Other investing activities | — | — | 2,726 | — | 2,726 | |||||||||||||||||||||||||||
Net decrease in cash and cash equivalents during the period | (299.4 | ) | (3.4 | ) | (42.4 | ) | — | (345.2 | ) | Net cash provided by (used in) investing activities | 249,133 | (86,243 | ) | (773,695 | ) | (332,763 | ) | (943,568 | ) | |||||||||||||||||||||
Cash and cash equivalents at beginning of period | 565 | 7.4 | 358.8 | — | 931.2 | Cash flows from financing activities: | ||||||||||||||||||||||||||||||||||
Proceeds from issuance of long-term debt | 1,209,866 | — | 1,425,847 | — | 2,635,713 | |||||||||||||||||||||||||||||||||||
Cash and cash equivalents at end of period | $ | 265.6 | $ | 4 | $ | 316.4 | $ | — | $ | 586 | ||||||||||||||||||||||||||||||
Payment of long-term debt | (73,342 | ) | (68 | ) | (2,880,823 | ) | — | (2,954,233 | ) | |||||||||||||||||||||||||||||||
Short-term borrowings: | ||||||||||||||||||||||||||||||||||||||||
Proceeds | — | — | 490,490 | — | 490,490 | |||||||||||||||||||||||||||||||||||
Payments | (2,615 | ) | — | (968,334 | ) | — | (970,949 | ) | ||||||||||||||||||||||||||||||||
Proceeds (payments) under the revolving lines of credit, net | (18,907 | ) | (3,515 | ) | 1,048,492 | — | 1,026,070 | |||||||||||||||||||||||||||||||||
Distributions to noncontrolling interest | — | — | (18,200 | ) | — | (18,200 | ) | |||||||||||||||||||||||||||||||||
Capital contributions received from parent | — | — | 1,544,332 | (1,544,332 | ) | — | ||||||||||||||||||||||||||||||||||
Payment of dividends and return of capital | (23,000 | ) | — | (2,258,650 | ) | 2,258,650 | (23,000 | ) | ||||||||||||||||||||||||||||||||
Proceeds from employee stock purchase plan | 3,208 | — | — | — | 3,208 | |||||||||||||||||||||||||||||||||||
Loan from Hertz Global Holdings, Inc. | (6,173 | ) | — | — | — | (6,173 | ) | |||||||||||||||||||||||||||||||||
Excess tax benefits from exercise of stock | (258 | ) | — | — | — | (258 | ) | |||||||||||||||||||||||||||||||||
Payment of financing costs | (29,111 | ) | — | (49,040 | ) | — | (78,151 | ) | ||||||||||||||||||||||||||||||||
Net cash provided by (used in) financing activities | 1,059,668 | (3,583 | ) | (1,665,886 | ) | 714,318 | 104,517 | |||||||||||||||||||||||||||||||||
Effect of foreign exchange rate changes on cash and cash equivalents | — | — | (10,337 | ) | — | (10,337 | ) | |||||||||||||||||||||||||||||||||
Net decrease in cash and cash equivalents during the period | 1,645,856 | (885 | ) | (256,432 | ) | — | 1,388,539 | |||||||||||||||||||||||||||||||||
Cash and cash equivalents at beginning of period | 108,522 | 6,043 | 870,902 | — | 985,467 | |||||||||||||||||||||||||||||||||||
Cash and cash equivalents at end of period | $ | 1,754,378 | $ | 5,158 | $ | 614,470 | $ | — | $ | 2,374,006 | ||||||||||||||||||||||||||||||
Subsequent_Events
Subsequent Events | 6 Months Ended | 12 Months Ended |
Jun. 30, 2013 | Dec. 31, 2012 | |
Subsequent Events | ||
Subsequent Events | Subsequent Events | Subsequent Events |
On July 31, 2013, Hertz entered into a supplement to the Senior ABL Facility to permit aggregate maximum borrowings of $1,865.0 million (subject to borrowing base availability). | On January 23, 2013, Hertz Vehicle Financing LLC, or ‘‘HVF,’’ an insolvency remote, direct, wholly-owned, special purpose subsidiary of Hertz, completed the issuance of $950.0 million in aggregate principal amount of three year and five year Series 2013-1 Rental Car Asset Backed Notes, Class A and Class B. The $282.75 million of three year Class A notes carry a 1.12% coupon, the $42.25 million of three year Class B notes carry a 1.86% coupon, the $543.75 million of five year Class A notes carry a 1.83% coupon, and the $81.25 million of five year Class B notes carry a 2.48% coupon. The three year notes and five year notes have expected final payment dates in August 2016 and August 2018, respectively. The Class B notes are subordinated to the Class A notes. | |
The net proceeds from the sale of the notes will be, to the extent permitted by the applicable agreements, (i) used to pay the purchase price of vehicles acquired by HVF pursuant to HVF's U.S. ABS Program (as defined herein), (ii) used to pay the principal amount of other HVF U.S. ABS Program indebtedness that is then permitted or required to be paid or (iii) released to HVF to be distributed to Hertz or otherwise used by HVF for general purposes. | ||
In February 2013, Hertz caused its Brazilian operating subsidiary to amend the Brazilian Fleet Financing Facility to extend the maturity date from February 2013 to October 2013. |
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended | 12 Months Ended | ||||||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | |||||||||||||||||||||||
Goodwill and Other Intangible Assets | ||||||||||||||||||||||||
Summary of changes in goodwill, by segment | The following summarizes the changes in our goodwill, by segment (in millions of dollars): | The following summarizes the changes in our goodwill, by segment (in millions of dollars): | ||||||||||||||||||||||
Car Rental | Equipment | Total | Car Rental | Equipment | Total | |||||||||||||||||||
Rental | Rental | |||||||||||||||||||||||
Balance as of January 1, 2013 | Balance as of January 1, 2012 | |||||||||||||||||||||||
Goodwill | $ | 1,287.50 | $ | 775.4 | $ | 2,062.90 | Goodwill | $ | 419.3 | $ | 693.8 | $ | 1,113.10 | |||||||||||
Accumulated impairment losses | (46.1 | ) | (674.9 | ) | (721.0 | ) | Accumulated impairment losses | (46.1 | ) | (674.9 | ) | (721.0 | ) | |||||||||||
1,241.40 | 100.5 | 1,341.90 | 373.2 | 18.9 | 392.1 | |||||||||||||||||||
Goodwill acquired during the period | 9.4 | — | 9.4 | Goodwill acquired during the year | 884.9 | 82 | 966.9 | |||||||||||||||||
Adjustments to previously recorded purchase price allocation(a) | 15 | 1.7 | 16.7 | Adjustments to previously recorded purchase price allocation(a) | (15.3 | ) | — | (15.3 | ) | |||||||||||||||
Other changes during the period(b) | (1.6 | ) | (0.1 | ) | (1.7 | ) | Other changes during the year(b) | (1.4 | ) | (0.4 | ) | (1.8 | ) | |||||||||||
22.8 | 1.6 | 24.4 | 868.2 | 81.6 | 949.8 | |||||||||||||||||||
Balance as of June 30, 2013 | Balance as of December 31, 2012 | |||||||||||||||||||||||
Goodwill | 1,310.30 | 777 | 2,087.30 | Goodwill | 1,287.50 | 775.4 | 2,062.90 | |||||||||||||||||
Accumulated impairment losses | (46.1 | ) | (674.9 | ) | (721.0 | ) | Accumulated impairment losses | (46.1 | ) | (674.9 | ) | (721.0 | ) | |||||||||||
$ | 1,264.20 | $ | 102.1 | $ | 1,366.30 | $ | 1,241.40 | $ | 100.5 | $ | 1,341.90 | |||||||||||||
Car Rental | Equipment | Total | Car Rental | Equipment | Total | |||||||||||||||||||
Rental | Rental | |||||||||||||||||||||||
Balance as of January 1, 2012 | Balance as of January 1, 2011 | |||||||||||||||||||||||
Goodwill | $ | 419.3 | $ | 693.8 | $ | 1,113.10 | Goodwill | $ | 367.9 | $ | 681.7 | $ | 1,049.60 | |||||||||||
Accumulated impairment losses | (46.1 | ) | (674.9 | ) | (721.0 | ) | Accumulated impairment losses | (46.1 | ) | (674.9 | ) | (721.0 | ) | |||||||||||
373.2 | 18.9 | 392.1 | 321.8 | 6.8 | 328.6 | |||||||||||||||||||
Goodwill acquired during the year | 884.9 | 82 | 966.9 | Goodwill acquired during the year | 53.1 | 12.3 | 65.4 | |||||||||||||||||
Adjustments to previously recorded purchase price allocation(c) | (15.3 | ) | — | (15.3 | ) | Adjustments to previously recorded purchase price allocation | (0.9 | ) | (0.1 | ) | (1.0 | ) | ||||||||||||
Other changes during the year(b) | (0.8 | ) | (0.1 | ) | (0.9 | ) | ||||||||||||||||||
Other changes during the year(d) | (1.4 | ) | (0.4 | ) | (1.8 | ) | 51.4 | 12.1 | 63.5 | |||||||||||||||
868.2 | 81.6 | 949.8 | ||||||||||||||||||||||
Balance as of December 31, 2011 | ||||||||||||||||||||||||
Balance as of December 31, 2012 | Goodwill | 419.3 | 693.8 | 1,113.10 | ||||||||||||||||||||
Goodwill | 1,287.50 | 775.4 | 2,062.90 | |||||||||||||||||||||
Accumulated impairment losses | (46.1 | ) | (674.9 | ) | (721.0 | ) | ||||||||||||||||||
Accumulated impairment losses | (46.1 | ) | (674.9 | ) | (721.0 | ) | $ | 373.2 | $ | 18.9 | $ | 392.1 | ||||||||||||
$ | 1,241.40 | $ | 100.5 | $ | 1,341.90 | |||||||||||||||||||
_______________________________________________________________________________ | ||||||||||||||||||||||||
_______________________________________________________________________________ | ||||||||||||||||||||||||
(a) | Consists of deferred tax adjustments recorded during 2012. | |||||||||||||||||||||||
(a) | Consists of adjustments related to purchase accounting and deferred tax during 2013. | |||||||||||||||||||||||
(b) | Primarily consists of changes resulting from disposals and the translation of foreign currenc | |||||||||||||||||||||||
(b) | Primarily consists of changes resulting from the translation of foreign currencies at different exchange rates from the beginning of the period to the end of the period. | |||||||||||||||||||||||
(c) | Consists of deferred tax adjustments recorded during 2012. | |||||||||||||||||||||||
(d) | Primarily consists of changes resulting from disposals and the translation of foreign currencies at different exchange rates from the beginning of the year to the end of the year. | |||||||||||||||||||||||
Components of other intangible assets by major classes | Other intangible assets, net, consisted of the following major classes (in millions of dollars): | Other intangible assets, net, consisted of the following major classes (in millions of dollars): | ||||||||||||||||||||||
30-Jun-13 | December 31, 2012 | |||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||||||||
Carrying | Amortization | Carrying | Carrying | Amortization | Carrying | |||||||||||||||||||
Amount | Value | Amount | Value | |||||||||||||||||||||
Amortizable intangible assets: | Amortizable intangible assets: | |||||||||||||||||||||||
Customer-related | $ | 694.6 | $ | (468.5 | ) | $ | 226.1 | Customer-related | $ | 694.7 | $ | (434.0 | ) | $ | 260.7 | |||||||||
Other(1) | 459.6 | (33.8 | ) | 425.8 | ||||||||||||||||||||
Other(1) | 454 | (59.8 | ) | 394.2 | ||||||||||||||||||||
Total | 1,154.30 | (467.8 | ) | 686.5 | ||||||||||||||||||||
Total | 1,148.60 | (528.3 | ) | 620.3 | ||||||||||||||||||||
Indefinite-lived intangible assets: | ||||||||||||||||||||||||
Indefinite-lived intangible assets: | Trade name | 3,330.00 | — | 3,330.00 | ||||||||||||||||||||
Trade name | 3,330.00 | — | 3,330.00 | Other(3) | 15.6 | — | 15.6 | |||||||||||||||||
Other(2) | 18.2 | — | 18.2 | Total | 3,345.60 | — | 3,345.60 | |||||||||||||||||
Total | 3,348.20 | — | 3,348.20 | Total other intangible assets, net | $ | 4,499.90 | $ | (467.8 | ) | $ | 4,032.10 | |||||||||||||
Total other intangible assets, net | $ | 4,496.80 | $ | (528.3 | ) | $ | 3,968.50 | |||||||||||||||||
31-Dec-12 | December 31, 2011 | |||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||||||||
Carrying | Amortization | Carrying | Carrying | Amortization | Carrying | |||||||||||||||||||
Amount | Value | Amount | Value | |||||||||||||||||||||
Amortizable intangible assets: | Amortizable intangible assets: | |||||||||||||||||||||||
Customer-related | $ | 694.7 | $ | (434.0 | ) | $ | 260.7 | Customer-related | $ | 672.6 | $ | (365.5 | ) | $ | 307.1 | |||||||||
Other(2) | 74.7 | (27.8 | ) | 46.9 | ||||||||||||||||||||
Other(1) | 459.6 | (33.8 | ) | 425.8 | ||||||||||||||||||||
Total | 747.3 | (393.3 | ) | 354 | ||||||||||||||||||||
Total | 1,154.30 | (467.8 | ) | 686.5 | ||||||||||||||||||||
Indefinite-lived intangible assets: | ||||||||||||||||||||||||
Indefinite-lived intangible assets: | Trade name | 2,190.00 | — | 2,190.00 | ||||||||||||||||||||
Trade name | 3,330.00 | — | 3,330.00 | Other(3) | 18.2 | — | 18.2 | |||||||||||||||||
Other(2) | 15.6 | — | 15.6 | Total | 2,208.20 | — | 2,208.20 | |||||||||||||||||
Total | 3,345.60 | — | 3,345.60 | Total other intangible assets, net | $ | 2,955.50 | $ | (393.3 | ) | $ | 2,562.20 | |||||||||||||
Total other intangible assets, net | $ | 4,499.90 | $ | (467.8 | ) | $ | 4,032.10 | |||||||||||||||||
_______________________________________________________________________________ | -1 | |||||||||||||||||||||||
Other amortizable intangible assets primarily include Dollar Thrifty concession agreements, Donlen trade name, reacquired franchise rights, non-compete agreements and technology-related intangibles. | ||||||||||||||||||||||||
-1 | Other amortizable intangible assets primarily include Dollar Thrifty concession agreements, Donlen trade name, reacquired franchise rights, non-compete agreements and technology-related intangibles. | |||||||||||||||||||||||
-2 | ||||||||||||||||||||||||
-2 | Other indefinite-lived intangible assets primarily consist of reacquired franchise rights. | Other amortizable intangible assets primarily consisted of our Advantage trade name and concession rights, Donlen trade name, reacquired franchise rights, non-compete agreements and technology-related intangibles. | ||||||||||||||||||||||
-3 | ||||||||||||||||||||||||
Other indefinite-lived intangible assets primarily consist of reacquired franchise rights. | ||||||||||||||||||||||||
Business_Combinations_and_Dive1
Business Combinations and Divestitures (Tables) | 6 Months Ended | 12 Months Ended | ||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | |||||||||||||||
Business Combinations and Divestitures | ||||||||||||||||
Business Acquisition, Pro Forma Information | The following table presents unaudited pro forma financial information as if the acquisition of Dollar Thrifty had occurred on January 1, 2012 for the period presented below (in millions of dollars). | The unaudited pro forma financial information for the years ended December 31, 2012, 2011 and 2010 was as follows (in millions): | ||||||||||||||
Revenue | Earnings | Revenue | Earnings | |||||||||||||
2012 supplemental pro forma for the second quarter of 2012 (combined entity) | $ | 2,555.10 | $ | 123.6 | Actual from 09/01/11 - 12/31/11 (Donlen only)(1) | $ | 142.7 | $ | 2 | |||||||
2012 supplemental pro forma for the first half of 2012 (combined entity) | $ | 4,812.50 | $ | 90.6 | Actual from 11/19/12 - 12/31/12 (Dollar Thrifty only)(2) | 170.6 | (25.9 | ) | ||||||||
2012 supplemental pro forma from 1/1/12 - 12/31/12 (combined entity)(3) | 10,193.30 | 441.8 | ||||||||||||||
2011 supplemental pro forma from 1/1/11 - 12/31/11 (combined entity)(4) | 9,920.30 | 235.1 | ||||||||||||||
2010 supplemental pro forma from 1/1/10 - 12/31/10 (combined entity)(5) | 7,904.30 | (48.6 | ) | |||||||||||||
_______________________________________________ | ||||||||||||||||
-1 | Donlen's actual earnings for the four months ended December 31, 2011 was impacted by certain charges related to the amortization expense associated with the acquired intangible assets and the fair value adjustment related to acquired software, as well as, the write-off of certain unamortized debt costs. | |||||||||||||||
-2 | Dollar Thrifty's actual earnings for the 43 days ended December 31, 2012 was impacted by certain charges related to the amortization expense associated with the acquired intangible assets and non-recurring compensation costs in connection with the merger. | |||||||||||||||
-3 | The unaudited pro forma financial information for the year ended December 31, 2012 combines the historical results of Hertz and Dollar Thrifty for the year ended December 31, 2012, and the effects of the pro forma adjustments listed below. | |||||||||||||||
-4 | The unaudited pro forma financial information for the year ended December 31, 2011 combines the historical results of Hertz, Donlen and Dollar Thrifty for the year ended December 31, 2011, and the effects of the pro forma adjustments listed below. | |||||||||||||||
-5 | The unaudited pro forma financial information for the year ended December 31, 2010 combines the historical results of Hertz and Donlen for the year ended December 31, 2010, and the effects of the pro forma adjustments listed below. |
Depreciation_of_Revenue_Earnin1
Depreciation of Revenue Earning Equipment and Lease Charges (Tables) | 6 Months Ended | 12 Months Ended | ||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | |||||||||||||||||||
Depreciation of Revenue Earning Equipment and Lease Charges | ||||||||||||||||||||
Depreciation of revenue earning equipment and lease charges | Depreciation of revenue earning equipment and lease charges includes the following (in millions of dollars): | Depreciation of revenue earning equipment and lease charges includes the following (in millions of dollars): | ||||||||||||||||||
Three Months Ended | Years Ended December 31, | |||||||||||||||||||
June 30, | 2012 | 2011 | 2010 | |||||||||||||||||
2013 | 2012 | Depreciation of revenue earning equipment | $ | 2,165.20 | $ | 1,921.80 | $ | 1,747.00 | ||||||||||||
Depreciation of revenue earning equipment | $ | 611.8 | $ | 539.5 | ||||||||||||||||
Adjustment of depreciation upon disposal of revenue earning equipment | (96.8 | ) | (112.2 | ) | 42.9 | |||||||||||||||
Adjustment of depreciation upon disposal of revenue earning equipment | 11.3 | (41.2 | ) | |||||||||||||||||
Rents paid for vehicles leased | 79.8 | 96.1 | 78.2 | |||||||||||||||||
Rents paid for vehicles leased | 18 | 21.5 | ||||||||||||||||||
Total | $ | 2,148.20 | $ | 1,905.70 | $ | 1,868.10 | ||||||||||||||
Total | $ | 641.1 | $ | 519.8 | ||||||||||||||||
Six Months Ended | ||||||||||||||||||||
June 30, | ||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
Depreciation of revenue earning equipment | $ | 1,184.80 | $ | 1,070.90 | ||||||||||||||||
Adjustment of depreciation upon disposal of revenue earning equipment | 10 | (80.6 | ) | |||||||||||||||||
Rents paid for vehicles leased | 33.3 | 44.6 | ||||||||||||||||||
Total | $ | 1,228.10 | $ | 1,034.90 | ||||||||||||||||
Debt_Tables
Debt (Tables) | 6 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | ||||||||||||||||||||||||||||||
Debt | |||||||||||||||||||||||||||||||
Components of debt | Our debt consists of the following (in millions of dollars): | Our debt consists of the following (in millions of dollars): | |||||||||||||||||||||||||||||
Facility | Average | Fixed or | Maturity | June 30, | December 31, | Facility | Average Interest | Fixed or | Maturity | December 31, | December 31, | ||||||||||||||||||||
Interest Rate | Floating | 2013 | 2012 | Rate at | Floating | 2012 | 2011 | ||||||||||||||||||||||||
at June 30, | Interest | December 31, | Interest | ||||||||||||||||||||||||||||
2013(1) | Rate | 2012(1) | Rate | ||||||||||||||||||||||||||||
Corporate Debt | Corporate Debt | ||||||||||||||||||||||||||||||
Senior Term Facility | 3.26 | % | Floating | Mar-18 | $ | 2,114.80 | $ | 2,125.50 | Senior Term Facility | 3.75 | % | Floating | Mar-18 | $ | 2,125.50 | $ | 1,389.50 | ||||||||||||||
Senior ABL Facility | 2.89 | % | Floating | Mar-16 | 1,005.80 | 195 | Senior ABL Facility | 2.47 | % | Floating | Mar-16 | 195 | — | ||||||||||||||||||
Senior Notes(2) | 6.58 | % | Fixed | 4/2018 - 10/2022 | 3,900.00 | 3,650.00 | Senior Notes(2) | 6.74 | % | Fixed | 10/2018 - 10/2022 | 3,650.00 | 2,638.60 | ||||||||||||||||||
Promissory Notes | 6.96 | % | Fixed | 6/2012 - 1/2028 | 48.7 | 48.7 | Promissory Notes | 6.96 | % | Fixed | 6/2012 - 1/2028 | 48.7 | 224.7 | ||||||||||||||||||
Other Corporate Debt | 3.51 | % | Floating | Various | 58.5 | 88.7 | Other Corporate Debt | 4.4 | % | Floating | Various | 88.7 | 49.6 | ||||||||||||||||||
Unamortized Net Premium (Corporate) | 3.2 | 3.3 | Unamortized Net (Discount) Premium (Corporate) | 3.3 | (6.9 | ) | |||||||||||||||||||||||||
Total Corporate Debt | 7,131.00 | 6,111.20 | Total Corporate Debt | 6,111.20 | 4,295.50 | ||||||||||||||||||||||||||
Fleet Debt | Fleet Debt | ||||||||||||||||||||||||||||||
HVF U.S. ABS Program | HVF U.S. ABS Program | ||||||||||||||||||||||||||||||
HVF U.S. Fleet Variable Funding Notes: | HVF U.S. Fleet Variable Funding Notes: | ||||||||||||||||||||||||||||||
HVF Series 2009-1(3) | 1.04 | % | Floating | Mar-14 | 2,590.00 | 2,350.00 | HVF Series 2009-1(3) | 1.11 | % | Floating | Mar-14 | 2,350.00 | 1,000.00 | ||||||||||||||||||
HVF Series 2010-2(3) | N/A | Floating | Mar-13 | — | 170 | ||||||||||||||||||||||||||
2,590.00 | 2,350.00 | HVF Series 2011-2(3) | N/A | Floating | Apr-12 | — | 175 | ||||||||||||||||||||||||
HVF U.S. Fleet Medium Term Notes | 2,350.00 | 1,345.00 | |||||||||||||||||||||||||||||
HVF Series 2009-2(3) | 5.37 | % | Fixed | 3/2013 - 3/2015 | 807.5 | 1,095.90 | |||||||||||||||||||||||||
HVF Series 2010-1(3) | 3.77 | % | Fixed | 2/2014 - 2/2018 | 749.8 | 749.8 | HVF U.S. Fleet Medium Term Notes | ||||||||||||||||||||||||
HVF Series 2011-1(3) | 2.86 | % | Fixed | 3/2015 - 3/2017 | 598 | 598 | HVF Series 2009-2(3) | 5.11 | % | Fixed | 3/2013 - 3/2015 | 1,095.90 | 1,384.30 | ||||||||||||||||||
HVF Series 2013-1(3) | 1.68 | % | Fixed | 8/2016 - 8/2018 | 950 | — | HVF Series 2010-1(3) | 3.77 | % | Fixed | 2/2014 - 2/2018 | 749.8 | 749.8 | ||||||||||||||||||
HVF Series 2011-1(3) | 2.86 | % | Fixed | 3/2015 - 3/2017 | 598 | 598 | |||||||||||||||||||||||||
3,105.30 | 2,443.70 | ||||||||||||||||||||||||||||||
2,443.70 | 2,732.10 | ||||||||||||||||||||||||||||||
RCFC U.S. ABS Program | RCFC U.S. ABS Program | ||||||||||||||||||||||||||||||
RCFC U.S. Fleet Variable Funding Notes | RCFC U.S. Fleet Variable Funding Notes | ||||||||||||||||||||||||||||||
RCFC Series 2010-3 Notes(3)(4) | 1.03 | % | Floating | Dec-13 | 540 | 519 | RCFC Series 2010-3 Notes(3)(4) | 1.06 | % | Floating | Dec-13 | 519 | — | ||||||||||||||||||
RCFC U.S. Fleet Medium Term Notes | RCFC U.S. Fleet Medium Term Notes | ||||||||||||||||||||||||||||||
RCFC Series 2011-1 Notes(3)(4) | 2.81 | % | Fixed | Feb-15 | 500 | 500 | RCFC Series 2011-1 Notes(3)(4) | 2.81 | % | Fixed | Feb-15 | 500 | — | ||||||||||||||||||
RCFC Series 2011-2 Notes(3)(4) | 3.21 | % | Fixed | May-15 | 400 | 400 | RCFC Series 2011-2 Notes(3)(4) | 3.21 | % | Fixed | May-15 | 400 | — | ||||||||||||||||||
1,440.00 | 1,419.00 | 1,419.00 | — | ||||||||||||||||||||||||||||
Donlen ABS Program | Donlen ABS Program | ||||||||||||||||||||||||||||||
Donlen GN II Variable Funding Notes(5) | 1 | % | Floating | Dec-13 | 943.8 | 899.3 | Donlen GN II Variable Funding Notes(3) | 1.15 | % | Floating | Dec-13 | 899.3 | 811.2 | ||||||||||||||||||
Other Fleet Debt | Other Fleet Debt | ||||||||||||||||||||||||||||||
U.S. Fleet Financing Facility | 2.95 | % | Floating | Sep-15 | 171 | 166 | U.S. Fleet Financing Facility | 3.27 | % | Floating | Sep-15 | 166 | 136 | ||||||||||||||||||
European Revolving Credit Facility | 2.67 | % | Floating | Jun-15 | 357.9 | 185.3 | European Revolving Credit Facility | 2.86 | % | Floating | Jun-15 | 185.3 | 200.6 | ||||||||||||||||||
European Fleet Notes | 8.5 | % | Fixed | Jul-15 | 520.5 | 529.4 | European Fleet Notes | 8.5 | % | Fixed | Jul-15 | 529.4 | 517.7 | ||||||||||||||||||
European Securitization(3) | 2.5 | % | Floating | Jul-14 | 363 | 242.2 | European Securitization(3) | 2.48 | % | Floating | Jul-14 | 242.2 | 256.2 | ||||||||||||||||||
Hertz-Sponsored Canadian Securitization(3) | 2.14 | % | Floating | Mar-14 | 124.2 | 100.5 | Hertz-Sponsored Canadian Securitization(3) | 2.16 | % | Floating | Jun-13 | 100.5 | 68.3 | ||||||||||||||||||
Dollar Thrifty Sponsored Canadian Securitization(3)(4) | 2.13 | % | Floating | Aug-14 | 76.4 | 55.3 | Dollar Thrifty Sponsored Canadian Securitization(3)(4) | 2.13 | % | Floating | Aug-14 | 55.3 | — | ||||||||||||||||||
Australian Securitization(3)(6) | 4.17 | % | Floating | Dec-14 | 119.7 | 148.9 | Australian Securitization(3) | 4.61 | % | Floating | Dec-14 | 148.9 | 169.3 | ||||||||||||||||||
Brazilian Fleet Financing Facility | 13.89 | % | Floating | Oct-13 | 13 | 14 | Brazilian Fleet Financing Facility | 13.07 | % | Floating | Feb-13 | 14 | 23.1 | ||||||||||||||||||
Capitalized Leases | 4.08 | % | Floating | Various | 429.6 | 337.6 | Capitalized Leases | 4.4 | % | Floating | Various | 337.6 | 363.7 | ||||||||||||||||||
Unamortized Discount (Fleet) | 8.8 | 12.1 | Unamortized Net (Discount) Premium (Fleet) | 12.1 | (10.9 | ) | |||||||||||||||||||||||||
2,184.10 | 1,791.30 | 1,791.30 | 1,724.00 | ||||||||||||||||||||||||||||
Total Fleet Debt | 10,263.20 | 8,903.30 | Total Fleet Debt | 8,903.30 | 6,612.30 | ||||||||||||||||||||||||||
Total Debt | $ | 17,394.20 | $ | 15,014.50 | Total Debt | $ | 15,014.50 | $ | 10,907.80 | ||||||||||||||||||||||
Note: | -1 | ||||||||||||||||||||||||||||||
For further information on the definitions and terms of our debt, see Note 5 of the Notes to our audited annual consolidated financial statements included in our Form 10-K under the caption "Item 8—Financial Statements and Supplementary Data." | As applicable, reference is to the December 31, 2012 weighted average interest rate (weighted by principal balance). | ||||||||||||||||||||||||||||||
-1 | -2 | ||||||||||||||||||||||||||||||
As applicable, reference is to the June 30, 2013 weighted average interest rate (weighted by principal balance). | References to our "Senior Notes" include the series of Hertz's unsecured senior notes set forth in the table below. As of December 31, 2012 and December 31, 2011, the outstanding principal amount for each such series of the Senior Notes is also specified below. | ||||||||||||||||||||||||||||||
-2 | |||||||||||||||||||||||||||||||
References to our "Senior Notes" include the series of Hertz's unsecured senior notes set forth in the table below. As of June 30, 2013 and December 31, 2012, the outstanding principal amount for each such series of the Senior Notes is as specified below. | Outstanding Principal (in millions) | ||||||||||||||||||||||||||||||
Senior Notes | December 31, | December 31, | |||||||||||||||||||||||||||||
2012 | 2011 | ||||||||||||||||||||||||||||||
Outstanding Principal | 8.875% Senior Notes due January 2014 | $ | — | $ | 162.3 | ||||||||||||||||||||||||||
(in millions) | 7.875% Senior Notes due January 2014 | — | 276.3 | € | (213.5 | ) | |||||||||||||||||||||||||
Senior Notes | June 30, | December 31, | 7.50% Senior Notes due October 2018 | 700 | 700 | ||||||||||||||||||||||||||
2013 | 2012 | 6.75% Senior Notes due April 2019 | 1,250.00 | 1,000.00 | |||||||||||||||||||||||||||
4.25% Senior Notes due April 2018 | $ | 250 | $ | — | 5.875% Senior Notes due October 2020 | 700 | — | ||||||||||||||||||||||||
7.50% Senior Notes due October 2018 | 700 | 700 | 7.375% Senior Notes due January 2021 | 500 | 500 | ||||||||||||||||||||||||||
6.75% Senior Notes due April 2019 | 1,250.00 | 1,250.00 | 6.25% Senior Notes due October 2022 | 500 | — | ||||||||||||||||||||||||||
5.875% Senior Notes due October 2020 | 700 | 700 | |||||||||||||||||||||||||||||
7.375% Senior Notes due January 2021 | 500 | 500 | $ | 3,650.00 | $ | 2,638.60 | |||||||||||||||||||||||||
6.25% Senior Notes due October 2022 | 500 | 500 | |||||||||||||||||||||||||||||
$ | 3,900.00 | $ | 3,650.00 | -3 | |||||||||||||||||||||||||||
Maturity reference is to the "expected final maturity date" as opposed to the subsequent "legal maturity date." The expected final maturity date is the date by which Hertz and investors in the relevant indebtedness expect the relevant indebtedness to be repaid. The legal final maturity date is the date on which the relevant indebtedness is legally due and payable. | |||||||||||||||||||||||||||||||
-3 | -4 | ||||||||||||||||||||||||||||||
Maturity reference is to the "expected final maturity date" as opposed to the subsequent "legal maturity date." The expected final maturity date is the date by which Hertz and investors in the relevant indebtedness expect the relevant indebtedness to be repaid. The legal final maturity date is the date on which the relevant indebtedness is legally due and payable. | RCFC U.S. ABS Program and the Dollar Thrifty-Sponsored Canadian Securitization represent fleet debt acquired in connection with the Dollar Thrifty acquisition on November 19, 2012. | ||||||||||||||||||||||||||||||
-4 | |||||||||||||||||||||||||||||||
RCFC U.S. ABS Program and the Dollar Thrifty-Sponsored Canadian Securitization represent fleet debt acquired in connection with the Dollar Thrifty acquisition on November 19, 2012. | |||||||||||||||||||||||||||||||
Schedule of outstanding principal amount for each series of the Senior Notes | |||||||||||||||||||||||||||||||
Outstanding Principal | Outstanding Principal (in millions) | ||||||||||||||||||||||||||||||
(in millions) | Senior Notes | December 31, | December 31, | ||||||||||||||||||||||||||||
Senior Notes | June 30, | December 31, | 2012 | 2011 | |||||||||||||||||||||||||||
2013 | 2012 | 8.875% Senior Notes due January 2014 | $ | — | $ | 162.3 | |||||||||||||||||||||||||
4.25% Senior Notes due April 2018 | $ | 250 | $ | — | 7.875% Senior Notes due January 2014 | — | 276.3 | € | (213.5 | ) | |||||||||||||||||||||
7.50% Senior Notes due October 2018 | 700 | 700 | 7.50% Senior Notes due October 2018 | 700 | 700 | ||||||||||||||||||||||||||
6.75% Senior Notes due April 2019 | 1,250.00 | 1,250.00 | 6.75% Senior Notes due April 2019 | 1,250.00 | 1,000.00 | ||||||||||||||||||||||||||
5.875% Senior Notes due October 2020 | 700 | 700 | 5.875% Senior Notes due October 2020 | 700 | — | ||||||||||||||||||||||||||
7.375% Senior Notes due January 2021 | 500 | 500 | 7.375% Senior Notes due January 2021 | 500 | 500 | ||||||||||||||||||||||||||
6.25% Senior Notes due October 2022 | 500 | 500 | 6.25% Senior Notes due October 2022 | 500 | — | ||||||||||||||||||||||||||
$ | 3,900.00 | $ | 3,650.00 | $ | 3,650.00 | $ | 2,638.60 | ||||||||||||||||||||||||
Components of maturities of debt | The aggregate amounts of maturities of debt for each of the twelve-month periods ending December 31 (in millions of dollars) are as follows: | ||||||||||||||||||||||||||||||
2014 | $ | 7,028.30 | (including $6,741.1 of other short-term borrowings*) | ||||||||||||||||||||||||||||
2013 | $ | 5,744.10 | (including $5,244.0 of other short-term borrowings*) | ||||||||||||||||||||||||||||
2015 | $ | 2,124.40 | |||||||||||||||||||||||||||||
2014 | $ | 1,122.10 | |||||||||||||||||||||||||||||
2016 | $ | 1,140.00 | |||||||||||||||||||||||||||||
2015 | $ | 1,894.10 | |||||||||||||||||||||||||||||
2017 | $ | 366.5 | |||||||||||||||||||||||||||||
2016 | $ | 267.1 | |||||||||||||||||||||||||||||
2018 | $ | 2,819.10 | |||||||||||||||||||||||||||||
2017 | $ | 219.2 | |||||||||||||||||||||||||||||
After 2018 | $ | 3,903.90 | |||||||||||||||||||||||||||||
After 2017 | $ | 5,752.50 | |||||||||||||||||||||||||||||
_______________________________________________________________________________ | |||||||||||||||||||||||||||||||
_______________________________________________________________________________ | |||||||||||||||||||||||||||||||
* | Our short-term borrowings as of June 30, 2013 include, among other items, the amounts outstanding under the Senior ABL Facility, HVF U.S. Fleet Variable Funding Notes, RCFC U.S. Fleet Variable Funding Notes, Donlen GN II Variable Funding Notes, U.S. Fleet Financing Facility, European Revolving Credit Facility, European Securitization, Hertz-Sponsored Canadian Securitization, Dollar Thrifty-Sponsored Canadian Securitization, Australian Securitization, Brazilian Fleet Financing Facility and Capitalized Leases. These amounts are reflected as short-term borrowings, regardless of the facility maturity date, as these facilities are revolving in nature and/or the outstanding borrowings have maturities of three months or less. As of June 30, 2013, short-term borrowings had a weighted average interest rate of 1.8%. | ||||||||||||||||||||||||||||||
* | Our short-term borrowings as of December 31, 2012 include, among other items, the amounts outstanding under the Senior ABL Facility, HVF U.S. Fleet Variable Funding Notes, RCFC U.S. Fleet Variable Funding Notes, Donlen GN II Variable Funding Notes, U.S. Fleet Financing Facility, European Revolving Credit Facility, European Securitization, Hertz-Sponsored Canadian Securitization, Dollar Thrifty-Sponsored Canadian Securitization, Australian Securitization, Brazilian Fleet Financing Facility and Capitalized Leases. These amounts are reflected as short-term borrowings, regardless of the facility maturity date, as these facilities are revolving in nature and/or the outstanding borrowings have maturities of three months or less. As of December 31, 2012, short-term borrowings had a weighted average interest rate of 1.8%. | ||||||||||||||||||||||||||||||
Schedule of facilities available for the use of Hertz and its subsidiaries | As of June 30, 2013, the following facilities were available for the use of Hertz and its subsidiaries (in millions of dollars): | As of December 31, 2012, the following facilities were available for the use of Hertz and its subsidiaries (in millions of dollars): | |||||||||||||||||||||||||||||
Remaining | Availability Under | Remaining | Availability Under | ||||||||||||||||||||||||||||
Capacity | Borrowing Base | Capacity | Borrowing Base | ||||||||||||||||||||||||||||
Limitation | Limitation | ||||||||||||||||||||||||||||||
Corporate Debt | Corporate Debt | ||||||||||||||||||||||||||||||
Senior ABL Facility | $ | 357.3 | $ | 357.3 | Senior ABL Facility | $ | 1,183.70 | $ | 1,146.00 | ||||||||||||||||||||||
Total Corporate Debt | 357.3 | 357.3 | Total Corporate Debt | 1,183.70 | 1,146.00 | ||||||||||||||||||||||||||
Fleet Debt | Fleet Debt | ||||||||||||||||||||||||||||||
HVF U.S. Fleet Variable Funding Notes | 148.8 | — | HVF U.S. Fleet Variable Funding Notes | 88.8 | — | ||||||||||||||||||||||||||
RCFC U.S. Fleet Variable Funding Notes | 60 | — | |||||||||||||||||||||||||||||
Donlen GN II Variable Funding Notes | 60 | — | RCFC U.S. Fleet Variable Funding Notes | 81 | — | ||||||||||||||||||||||||||
U.S. Fleet Financing Facility | 19 | — | |||||||||||||||||||||||||||||
European Revolving Credit Facility | 58.5 | — | Donlen GN II Variable Funding Notes | 105 | — | ||||||||||||||||||||||||||
European Securitization | 157.4 | — | |||||||||||||||||||||||||||||
Hertz-Sponsored Canadian Securitization | 85 | — | U.S. Fleet Financing Facility | 24 | — | ||||||||||||||||||||||||||
Dollar Thrifty-Sponsored Canadian Securitization | 66.9 | — | |||||||||||||||||||||||||||||
Australian Securitization | 112.3 | — | European Revolving Credit Facility | 105.9 | 7.9 | ||||||||||||||||||||||||||
Total Fleet Debt | 767.9 | — | European Securitization | 287.2 | — | ||||||||||||||||||||||||||
Total | $ | 1,125.20 | $ | 357.3 | Hertz-Sponsored Canadian Securitization | 100.5 | — | ||||||||||||||||||||||||
Dollar Thrifty-Sponsored Canadian Securitization | 95.5 | — | |||||||||||||||||||||||||||||
Australian Securitization | 110.5 | — | |||||||||||||||||||||||||||||
Capitalized Leases | 85.1 | 27.5 | |||||||||||||||||||||||||||||
Total Fleet Debt | 1,083.50 | 35.4 | |||||||||||||||||||||||||||||
Total | $ | 2,267.20 | $ | 1,181.40 | |||||||||||||||||||||||||||
Employee_Retirement_Benefits_T
Employee Retirement Benefits (Tables) | 6 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Retirement Benefits | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of net periodic pension and postretirement expense | The following table sets forth the net periodic pension and postretirement (including health care, life insurance and auto) expense (in millions of dollars): | The following table sets forth the net periodic pension and postretirement (including health care, life insurance and auto) expense (in millions of dollars): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension Benefits | Postretirement | Pension Benefits | Postretirement | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. | Non-U.S. | Benefits (U.S.) | U.S. | Non-U.S. | Benefits (U.S.) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, | Years Ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2012 | 2011 | 2010 | 2012 | 2011 | 2010 | 2012 | 2011 | 2010 | ||||||||||||||||||||||||||||||||||||||||||||||
Components of Net Periodic | Components of Net Periodic Benefit Cost: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefit Cost: | Service cost | $ | 24.8 | $ | 26.2 | $ | 24 | $ | 1.9 | $ | 4 | $ | 5.2 | $ | 0.2 | $ | 0.2 | $ | 0.3 | |||||||||||||||||||||||||||||||||||||||||
Service cost | $ | 7.1 | $ | 7 | $ | 0.7 | $ | 0.3 | $ | — | $ | 0.1 | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest cost | 28.2 | 27.5 | 26.1 | 9.7 | 11 | 9.7 | 0.8 | 0.9 | 0.9 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Interest cost | 6.9 | 7.4 | 2.3 | 2.3 | 0.1 | 0.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expected return on plan assets | (31.5 | ) | (30.5 | ) | (26.6 | ) | (12.1 | ) | (12.8 | ) | (10.0 | ) | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Expected return on plan assets | (7.5 | ) | (8.0 | ) | (3.2 | ) | (3.0 | ) | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net amortizations | 11.8 | 7.2 | 4.6 | (0.1 | ) | (0.7 | ) | (1.0 | ) | — | 0.1 | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Net amortizations | 4 | 3.2 | 0.1 | (0.1 | ) | 0.1 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Settlement loss | 2 | 2.2 | 0.4 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net pension / | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
postretirement expense | $ | 10.5 | $ | 9.6 | $ | (0.1 | ) | $ | (0.5 | ) | $ | 0.2 | $ | 0.3 | Curtailment gain | — | — | — | — | (12.9 | ) | (0.2 | ) | — | — | — | ||||||||||||||||||||||||||||||||||
Special termination cost | — | — | — | — | 0.1 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Pension Benefits | Postretirement | Net pension and postretirement expense | $ | 35.3 | $ | 32.6 | $ | 28.5 | $ | (0.6 | ) | $ | (11.3 | ) | $ | 3.7 | $ | 1 | $ | 1.2 | $ | 1.2 | ||||||||||||||||||||||||||||||||||||||
U.S. | Non-U.S. | Benefits (U.S.) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | Weighted‑average discount rate for expense (January 1) | 4.71 | % | 5.12 | % | 5.42 | % | 4.78 | % | 5.36 | % | 5.71 | % | 4.4 | % | 4.9 | % | 5.4 | % | ||||||||||||||||||||||||||||||||||||
Components of Net Periodic | Weighted‑average assumed long-term rate of return on assets (January 1) | 8 | % | 8.4 | % | 8.5 | % | 7.44 | % | 7.46 | % | 7.46 | % | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||
Benefit Cost: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Service cost | $ | 14.4 | $ | 13.3 | $ | 1.3 | $ | 0.6 | $ | 0.1 | $ | 0.2 | Initial health care cost trend rate | N/A | N/A | N/A | N/A | N/A | N/A | 8.1 | % | 8.4 | % | 8.7 | % | |||||||||||||||||||||||||||||||||||
Interest cost | 13.6 | 13.9 | 4.6 | 4.6 | 0.3 | 0.4 | Ultimate health care cost trend rate | N/A | N/A | N/A | N/A | N/A | N/A | 4.5 | % | 4.5 | % | 4.5 | % | |||||||||||||||||||||||||||||||||||||||||
Expected return on plan assets | (15.0 | ) | (15.3 | ) | (6.3 | ) | (6.0 | ) | — | — | Number of years to ultimate trend rate | N/A | N/A | N/A | N/A | N/A | N/A | 17 | 18 | 19 | ||||||||||||||||||||||||||||||||||||||||
Net amortizations | 8.3 | 6 | 0.2 | (0.1 | ) | 0.1 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net pension / | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
postretirement expense | $ | 21.3 | $ | 17.9 | $ | (0.2 | ) | $ | (0.9 | ) | $ | 0.5 | $ | 0.6 | ||||||||||||||||||||||||||||||||||||||||||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 6 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | |||||||||||||||||||||||||||
Stock-Based Compensation | ||||||||||||||||||||||||||||
Summary of the total compensation expense and associated recognized income tax benefits | A summary of the total compensation expense and associated income tax benefits recognized under our Hertz Global Holdings, Inc. Stock Incentive Plan and Hertz Global Holdings, Inc. Director Stock Incentive Plan, or the "Prior Plans," and the Omnibus Plan, including the cost of stock options, RSUs, and PSUs, is as follows (in millions of dollars): | A summary of the total compensation expense and associated income tax benefits recognized under the Prior Plans and the Omnibus Plan, including the cost of stock options, RSUs, and PSUs, is as follows (in millions of dollars): | ||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | Years Ended December 31, | ||||||||||||||||||||||||||
June 30, | June 30, | 2012 | 2011 | 2010 | ||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | Compensation expense | $ | 30.3 | $ | 31 | $ | 36.6 | ||||||||||||||||||
Compensation expense | $ | 11.7 | $ | 7.5 | $ | 19.7 | $ | 15 | ||||||||||||||||||||
Income tax benefit | (11.7 | ) | (12.0 | ) | (14.2 | ) | ||||||||||||||||||||||
Income tax benefit | (4.5 | ) | (2.9 | ) | (7.6 | ) | (5.8 | ) | Total | $ | 18.6 | $ | 19 | $ | 22.4 | |||||||||||||
Total | $ | 7.2 | $ | 4.6 | $ | 12.1 | $ | 9.2 | ||||||||||||||||||||
Segment_Information_Tables
Segment Information (Tables) | 6 Months Ended | 12 Months Ended | |||||||||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | ||||||||||||||||||||||||||
Segment Information | |||||||||||||||||||||||||||
Summary of contribution of reportable segments to revenues and adjusted pre-tax income (loss) and the reconciliation to consolidated amounts | The contribution of our reportable segments to revenues and adjusted pre-tax income and the reconciliation to consolidated amounts are summarized below (in millions of dollars). | The contribution of our reportable segments for the years ended December 31, 2012, 2011 and 2010 is summarized below (in millions of dollars). | |||||||||||||||||||||||||
Three Months Ended June 30, | Years ended December 31, | ||||||||||||||||||||||||||
Revenues | Adjusted Pre-Tax Income | 2012 | 2011 | 2010 | |||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | Revenues | |||||||||||||||||||||||
Car rental | $ | 2,329.50 | $ | 1,889.60 | $ | 363 | $ | 277.4 | Car rental | $ | 7,633.00 | $ | 7,083.50 | $ | 6,486.20 | ||||||||||||
Equipment rental | 1,385.40 | 1,209.50 | 1,070.10 | ||||||||||||||||||||||||
Equipment rental | 384.3 | 335 | 74.1 | 42.5 | Other reconciling items | 2.4 | 5.4 | 6.2 | |||||||||||||||||||
Total reportable segments | 2,713.80 | 2,224.60 | 437.1 | 319.9 | Total | $ | 9,020.80 | $ | 8,298.40 | $ | 7,562.50 | ||||||||||||||||
Other | 0.8 | 0.5 | Adjusted pre-tax income(a) | ||||||||||||||||||||||||
Car rental | $ | 1,020.10 | $ | 850.2 | $ | 641.9 | |||||||||||||||||||||
Total | $ | 2,714.60 | $ | 2,225.10 | Equipment rental | $ | 227 | $ | 161.6 | $ | 78 | ||||||||||||||||
Depreciation of revenue earning equipment and lease charges | |||||||||||||||||||||||||||
Adjustments: | Car rental | $ | 1,876.10 | $ | 1,651.40 | $ | 1,594.60 | ||||||||||||||||||||
Other reconciling items(1) | (116.2 | ) | (79.8 | ) | Equipment rental | 272.1 | 254.3 | 273.5 | |||||||||||||||||||
Purchase accounting(2) | (33.1 | ) | (29.0 | ) | Total | $ | 2,148.20 | $ | 1,905.70 | $ | 1,868.10 | ||||||||||||||||
Non-cash debt charges(3) | (12.1 | ) | (13.9 | ) | Depreciation of property and equipment | ||||||||||||||||||||||
Car rental | $ | 126.9 | $ | 116.1 | $ | 112.3 | |||||||||||||||||||||
Restructuring charges | (17.6 | ) | (16.1 | ) | Equipment rental | 34.1 | 33.7 | 34.3 | |||||||||||||||||||
Other reconciling items | 11.6 | 8.2 | 7.4 | ||||||||||||||||||||||||
Restructuring related charges(4) | (8.6 | ) | (5.0 | ) | |||||||||||||||||||||||
Total | $ | 172.6 | $ | 158 | $ | 154 | |||||||||||||||||||||
Integration expenses(5) | (9.2 | ) | — | ||||||||||||||||||||||||
Amortization of other intangible assets | |||||||||||||||||||||||||||
Derivative gains (losses)(6) | (0.1 | ) | — | Car rental | $ | 41.7 | $ | 32.7 | $ | 30.2 | |||||||||||||||||
Equipment rental | 40.6 | 35.8 | 33.4 | ||||||||||||||||||||||||
Acquisition related costs | (9.1 | ) | (4.5 | ) | Other reconciling items | 1.8 | 1.5 | 1.1 | |||||||||||||||||||
Other(7) | (5.4 | ) | — | Total | $ | 84.1 | $ | 70 | $ | 64.7 | |||||||||||||||||
Income before income taxes | $ | 225.7 | $ | 171.6 | Interest expense | ||||||||||||||||||||||
Car rental | $ | 316.3 | $ | 333.1 | $ | 401.3 | |||||||||||||||||||||
Equipment rental | 52 | 45.3 | 39.4 | ||||||||||||||||||||||||
Other reconciling items | 229.5 | 271.9 | 285.8 | ||||||||||||||||||||||||
Six Months Ended June 30, | Total | $ | 597.8 | $ | 650.3 | $ | 726.5 | ||||||||||||||||||||
Revenues | Adjusted Pre-Tax Income | ||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||
Car rental | $ | 4,414.30 | $ | 3,547.90 | $ | 571.4 | $ | 369 | |||||||||||||||||||
Equipment rental | 735.4 | 637.1 | 119.9 | 68.4 | |||||||||||||||||||||||
Total reportable segments | 5,149.70 | 4,185.00 | 691.3 | 437.4 | Years ended December 31, | ||||||||||||||||||||||
2012 | 2011 | 2010 | |||||||||||||||||||||||||
Other | 1.5 | 1.1 | Revenue earning equipment and property and equipment | ||||||||||||||||||||||||
Car rental | |||||||||||||||||||||||||||
Total | $ | 5,151.20 | $ | 4,186.10 | Expenditures | $ | 9,118.30 | $ | 9,109.90 | $ | 8,430.10 | ||||||||||||||||
Proceeds from disposals | (7,054.4 | ) | (7,689.4 | ) | (7,432.7 | ) | |||||||||||||||||||||
Adjustments: | |||||||||||||||||||||||||||
Other reconciling items(1) | (219.5 | ) | (161.7 | ) | Net expenditures | $ | 2,063.90 | $ | 1,420.50 | $ | 997.4 | ||||||||||||||||
Purchase accounting(2) | (66.8 | ) | (53.0 | ) | Equipment rental | ||||||||||||||||||||||
Expenditures | $ | 787.6 | $ | 617.5 | $ | 186.1 | |||||||||||||||||||||
Non-cash debt charges(3) | (22.1 | ) | (32.6 | ) | Proceeds from disposals | (192.3 | ) | (213.8 | ) | (124.3 | ) | ||||||||||||||||
Restructuring charges | (21.3 | ) | (22.8 | ) | Net expenditures (proceeds) | $ | 595.3 | $ | 403.7 | $ | 61.8 | ||||||||||||||||
Restructuring related charges(4) | (12.8 | ) | (8.3 | ) | Other reconciling items | ||||||||||||||||||||||
Expenditures | $ | 20.1 | $ | 8.6 | $ | 3.9 | |||||||||||||||||||||
Integration expenses(5) | (20.0 | ) | — | Proceeds from disposals | (16.1 | ) | (1.0 | ) | (0.3 | ) | |||||||||||||||||
Acquisition related costs | (11.7 | ) | (11.4 | ) | Net expenditures | $ | 4 | $ | 7.6 | $ | 3.6 | ||||||||||||||||
Other(7) | (5.4 | ) | — | ||||||||||||||||||||||||
Income before income taxes | $ | 311.7 | $ | 147.6 | |||||||||||||||||||||||
_______________________________________________________________________________ | |||||||||||||||||||||||||||
As of December 31, | |||||||||||||||||||||||||||
-1 | Represents general corporate expenses, certain interest expense (including net interest on corporate debt), as well as other business activities. | 2012 | 2011 | ||||||||||||||||||||||||
Total assets at end of year | |||||||||||||||||||||||||||
-2 | Represents the purchase accounting effects of the 2005 sale of all of Hertz's stock on our results of operations relating to increased depreciation and amortization of tangible and intangible assets and accretion of revalued workers' compensation and public liability and property damage liabilities. Also represents the purchase accounting effects of certain subsequent acquisitions on our results of operations relating to increased depreciation and amortization of tangible and intangible assets. | Car rental | $ | 18,454.20 | $ | 13,037.90 | |||||||||||||||||||||
Equipment rental | 3,623.00 | 3,058.90 | |||||||||||||||||||||||||
-3 | Represents non-cash debt charges relating to the amortization and write-off of deferred debt financing costs and debt discounts. | Other reconciling items | 1,213.00 | 1,570.50 | |||||||||||||||||||||||
-4 | Represents incremental costs incurred directly supporting our business transformation initiatives. Such costs include transition costs incurred in connection with our business process outsourcing arrangements and incremental costs incurred to facilitate business process re-engineering initiatives that involve significant organization redesign and extensive operational process changes. | Total | $ | 23,290.20 | $ | 17,667.30 | |||||||||||||||||||||
-5 | Primarily represents Dollar Thrifty related expenses and adjustments. | Revenue earning equipment, net, at end of year | |||||||||||||||||||||||||
Car rental | $ | 10,710.10 | $ | 8,318.70 | |||||||||||||||||||||||
-6 | Represents the mark-to-market adjustment on our interest rate caps. | Equipment rental | 2,198.20 | 1,786.70 | |||||||||||||||||||||||
-7 | Primarily represents expenses related to litigation accruals. | Total | $ | 12,908.30 | $ | 10,105.40 | |||||||||||||||||||||
Property and equipment, net, at end of year | |||||||||||||||||||||||||||
Car rental | $ | 1,111.30 | $ | 971.3 | |||||||||||||||||||||||
Equipment rental | 235.9 | 203.7 | |||||||||||||||||||||||||
Other reconciling items | 89.2 | 76.9 | |||||||||||||||||||||||||
Total | $ | 1,436.40 | $ | 1,251.90 | |||||||||||||||||||||||
We operate in the United States and in international countries. International operations are substantially in Europe. The operations within major geographic areas are summarized below (in millions of dollars): | |||||||||||||||||||||||||||
Years ended December 31, | |||||||||||||||||||||||||||
2012 | 2011 | 2010 | |||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||
United States | $ | 6,313.40 | $ | 5,413.30 | $ | 4,993.70 | |||||||||||||||||||||
International | 2,707.40 | 2,885.10 | 2,568.80 | ||||||||||||||||||||||||
Total | $ | 9,020.80 | $ | 8,298.40 | $ | 7,562.50 | |||||||||||||||||||||
As of December 31, | |||||||||||||||||||||||||||
2012 | 2011 | ||||||||||||||||||||||||||
Total assets at end of year | |||||||||||||||||||||||||||
United States | $ | 18,140.90 | $ | 12,724.40 | |||||||||||||||||||||||
International | 5,149.30 | 4,942.90 | |||||||||||||||||||||||||
Total | $ | 23,290.20 | $ | 17,667.30 | |||||||||||||||||||||||
Revenue earning equipment, net, at end of year | |||||||||||||||||||||||||||
United States | $ | 10,221.30 | $ | 7,621.20 | |||||||||||||||||||||||
International | 2,687.00 | 2,484.20 | |||||||||||||||||||||||||
Total | $ | 12,908.30 | $ | 10,105.40 | |||||||||||||||||||||||
Property and equipment, net, at end of year | |||||||||||||||||||||||||||
United States | $ | 1,226.10 | $ | 1,036.70 | |||||||||||||||||||||||
International | 210.3 | 215.2 | |||||||||||||||||||||||||
Total | $ | 1,436.40 | $ | 1,251.90 | |||||||||||||||||||||||
(a) | |||||||||||||||||||||||||||
The following table reconciles adjusted pre-tax income to income (loss) before income taxes for the years ended December 31, 2012, 2011 and 2010 (in millions of dollars): | |||||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||||
2012 | 2011 | 2010 | |||||||||||||||||||||||||
Adjusted pre-tax income | |||||||||||||||||||||||||||
Car rental | $ | 1,020.10 | $ | 850.2 | $ | 641.9 | |||||||||||||||||||||
Equipment rental | 227 | 161.6 | 78 | ||||||||||||||||||||||||
Total reportable segments | 1,247.10 | 1,011.80 | 719.9 | ||||||||||||||||||||||||
Adjustments: | |||||||||||||||||||||||||||
Other reconciling items(1) | (320.5 | ) | (306.2 | ) | (347.9 | ) | |||||||||||||||||||||
Purchase accounting(2) | (109.6 | ) | (87.6 | ) | (90.3 | ) | |||||||||||||||||||||
Non-cash debt charges(3) | (56.4 | ) | (105.9 | ) | (160.6 | ) | |||||||||||||||||||||
Restructuring charges | (38.0 | ) | (56.4 | ) | (54.7 | ) | |||||||||||||||||||||
Restructuring related charges(4) | (11.1 | ) | (9.8 | ) | (13.2 | ) | |||||||||||||||||||||
Derivative gains (losses)(5) | (0.9 | ) | 0.1 | (3.2 | ) | ||||||||||||||||||||||
Acquisition related costs and charges(6) | (163.7 | ) | (18.8 | ) | (17.7 | ) | |||||||||||||||||||||
Management transition costs | — | (4.0 | ) | — | |||||||||||||||||||||||
Pension adjustment(7) | — | 13.1 | — | ||||||||||||||||||||||||
Premiums paid on debt(8) | — | (62.4 | ) | — | |||||||||||||||||||||||
Other(9) | (44.0 | ) | — | — | |||||||||||||||||||||||
Income before income taxes | $ | 502.9 | $ | 373.9 | $ | 32.3 | |||||||||||||||||||||
-1 | |||||||||||||||||||||||||||
Represents general corporate expenses, certain interest expense (including net interest on corporate debt), as well as other business activities. | |||||||||||||||||||||||||||
-2 | |||||||||||||||||||||||||||
Represents the increase in amortization of other intangible assets, depreciation of property and equipment and accretion of revalued liabilities relating to purchase accounting. | |||||||||||||||||||||||||||
-3 | |||||||||||||||||||||||||||
Represents non-cash debt charges relating to the amortization and write-off of deferred debt financing costs and debt discounts. | |||||||||||||||||||||||||||
-4 | |||||||||||||||||||||||||||
Represents incremental costs incurred directly supporting our business transformation initiatives. Such costs include transition costs incurred in connection with our business process outsourcing arrangements and incremental costs incurred to facilitate business process re-engineering initiatives that involve significant organization redesign and extensive operational process changes. | |||||||||||||||||||||||||||
-5 | |||||||||||||||||||||||||||
Represents the mark-to-market adjustment on our interest rate cap. | |||||||||||||||||||||||||||
-6 | |||||||||||||||||||||||||||
Primarily represents Dollar Thrifty acquisition related expenses, change in control expenses, 'Day-1' compensation expenses and other adjustments related to the Dollar Thrifty acquisition, loss on the Advantage divestiture, expenses related to additional required divestitures and costs associated with the Dollar Thrifty acquisition, pre-acquisition interest and commitment fee expenses for interim financing associated with the Dollar Thrifty acquisition and a gain on the investment in Dollar Thrifty stock. | |||||||||||||||||||||||||||
-7 | |||||||||||||||||||||||||||
Represents a gain for the U.K. pension plan relating to unamortized prior service cost from a 2010 amendment that eliminated discretionary pension increases related to pre-1997 service primarily pertaining to inactive employees. | |||||||||||||||||||||||||||
-8 | |||||||||||||||||||||||||||
Represents premiums paid to redeem our 10.5% Senior Subordinated Notes and a portion of our 8.875% Senior Notes. | |||||||||||||||||||||||||||
-9 | |||||||||||||||||||||||||||
Primarily represents expenses related to the withdrawal from a multiemployer pension plan, litigation accrual and expenses associated with the impact of Hurricane Sandy. | |||||||||||||||||||||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended | |||||||||||||||||||||||
Jun. 30, 2013 | ||||||||||||||||||||||||
STOCKHOLDERS' EQUITY | ||||||||||||||||||||||||
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) [Table Text Block] | Amounts reclassified from accumulated other comprehensive income (loss) to earnings during the three-month and six-month periods ended June 30, 2013 and 2012 were as follows (in millions of dollars): | |||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | Statement of Operations Captions | ||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Pension and other postretirement benefit plans | ||||||||||||||||||||||||
Amortization of actuarial losses(1) | $ | 4 | $ | 3.2 | $ | 8.3 | $ | 6 | Selling, general and administrative | |||||||||||||||
Tax provision | (1.5 | ) | (1.2 | ) | (3.2 | ) | (2.3 | ) | ||||||||||||||||
Net of tax | $ | 2.5 | $ | 2 | $ | 5.1 | $ | 3.7 | ||||||||||||||||
Foreign Currency Items(2) | $ | 1.5 | $ | — | $ | 1.5 | $ | — | Other Income | |||||||||||||||
Total reclassifications for the period | $ | 4 | $ | 2 | $ | 6.6 | $ | 3.7 | ||||||||||||||||
-1 | Included in the computation of net periodic pension / postretirement expenses (see Note 9—Employee Retirement Benefits). | |||||||||||||||||||||||
-2 | Tax amounts are included in "Provision for taxes on income" in the consolidation statements of operations. | |||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Changes in the accumulated other comprehensive loss balance by component (net of tax) were as follows (in millions of dollars): | |||||||||||||||||||||||
Pension and Other Post-Employment Benefits | Foreign Currency Items | Unrealized Losses on Terminated Net Investment Hedges | Unrealized Gains on Available for Sale Securities | Other | Accumulated Other Comprehensive Loss | |||||||||||||||||||
Balance at January 1, 2013 | $ | (109.8 | ) | $ | 102.7 | $ | (19.4 | ) | $ | — | $ | (0.4 | ) | $ | (26.9 | ) | ||||||||
Other comprehensive income (loss) before reclassification | 0.3 | (55.5 | ) | — | 2.1 | 0.1 | (53.0 | ) | ||||||||||||||||
Amounts reclassified from accumulated other comprehensive income | 5.1 | 1.5 | — | — | — | 6.6 | ||||||||||||||||||
Net current period other comprehensive income (loss) | 5.4 | (54.0 | ) | — | 2.1 | 0.1 | (46.4 | ) | ||||||||||||||||
Balance at June 30, 2013 | $ | (104.4 | ) | $ | 48.7 | $ | (19.4 | ) | $ | 2.1 | $ | (0.3 | ) | $ | (73.3 | ) | ||||||||
Pension and Other Post-Employment Benefits | Foreign Currency Items | Unrealized Losses on Terminated Net Investment Hedges | Unrealized Gains on Available for Sale Securities | Other | Accumulated Other Comprehensive Loss | |||||||||||||||||||
Balance at January 1, 2012 | $ | (99.6 | ) | $ | 91.3 | $ | (19.4 | ) | $ | 0.3 | $ | (1.0 | ) | $ | (28.4 | ) | ||||||||
Other comprehensive income (loss) before reclassification | — | (16.5 | ) | — | 3.1 | 0.1 | (13.3 | ) | ||||||||||||||||
Amounts reclassified from accumulated other comprehensive income | 3.7 | — | — | — | — | 3.7 | ||||||||||||||||||
Net current period Other comprehensive income (loss) | 3.7 | (16.5 | ) | — | 3.1 | 0.1 | (9.6 | ) | ||||||||||||||||
Balance at June 30, 2012 | $ | (95.9 | ) | $ | 74.8 | $ | (19.4 | ) | $ | 3.4 | $ | (0.9 | ) | $ | (38.0 | ) | ||||||||
Restructuring_Tables
Restructuring (Tables) | 6 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | ||||||||||||||||||||||||||||||||||||
Restructuring | |||||||||||||||||||||||||||||||||||||
Summary of restructuring charges in consolidated statement of operations | Restructuring charges in our consolidated statement of operations can be summarized as follows (in millions of dollars). | Restructuring charges in our consolidated statement of operations can be summarized as follows (in millions of dollars): | |||||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | Years Ended December 31, | |||||||||||||||||||||||||||||||||||
June 30, | June 30, | 2012 | 2011 | 2010 | |||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | By Type: | |||||||||||||||||||||||||||||||||
By Type: | Termination benefits | $ | 26.2 | $ | 14.4 | $ | 12.2 | ||||||||||||||||||||||||||||||
Termination benefits | $ | 15.2 | $ | 13.5 | $ | 17.4 | $ | 16.2 | |||||||||||||||||||||||||||||
Pension and post retirement expense | 1 | 0.4 | 0.4 | ||||||||||||||||||||||||||||||||||
Consultant costs | 0.5 | 0.4 | 0.8 | 0.6 | |||||||||||||||||||||||||||||||||
Consultant costs | 1.2 | 1.3 | 1.1 | ||||||||||||||||||||||||||||||||||
Facility closure and lease obligation costs | 1.9 | 2.2 | 3.1 | 6 | |||||||||||||||||||||||||||||||||
Asset writedowns | — | 23.2 | 20.4 | ||||||||||||||||||||||||||||||||||
Total | $ | 17.6 | $ | 16.1 | $ | 21.3 | $ | 22.8 | |||||||||||||||||||||||||||||
Facility closure and lease obligation costs | 8.9 | 16.5 | 14.3 | ||||||||||||||||||||||||||||||||||
Relocation costs and temporary labor costs | 0.4 | 0.6 | 5 | ||||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||||
June 30, | June 30, | Other | 0.3 | — | 1.3 | ||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||
By Caption: | Total | $ | 38 | $ | 56.4 | $ | 54.7 | ||||||||||||||||||||||||||||||
Direct operating | $ | 6.8 | $ | 7 | $ | 8.3 | $ | 11.9 | |||||||||||||||||||||||||||||
Selling, general and administrative | 10.8 | 9.1 | 13 | 10.9 | |||||||||||||||||||||||||||||||||
Total | $ | 17.6 | $ | 16.1 | $ | 21.3 | $ | 22.8 | Years Ended December 31, | ||||||||||||||||||||||||||||
2012 | 2011 | 2010 | |||||||||||||||||||||||||||||||||||
By Caption: | |||||||||||||||||||||||||||||||||||||
Direct operating | $ | 22.6 | $ | 46.6 | $ | 43.5 | |||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||||
June 30, | June 30, | Selling, general and administrative | 15.4 | 9.8 | 11.2 | ||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||
By Segment: | Total | $ | 38 | $ | 56.4 | $ | 54.7 | ||||||||||||||||||||||||||||||
Car rental | $ | 15.8 | $ | 11.8 | $ | 18.9 | $ | 15.3 | |||||||||||||||||||||||||||||
Equipment rental | 0.8 | 2.6 | 1.3 | 5.8 | |||||||||||||||||||||||||||||||||
Other reconciling items | 1 | 1.7 | 1.1 | 1.7 | Years Ended December 31, | ||||||||||||||||||||||||||||||||
2012 | 2011 | 2010 | |||||||||||||||||||||||||||||||||||
Total | $ | 17.6 | $ | 16.1 | $ | 21.3 | $ | 22.8 | By Segment: | ||||||||||||||||||||||||||||
Car rental | $ | 26.4 | $ | 16.6 | $ | 18.1 | |||||||||||||||||||||||||||||||
Equipment rental | 8.8 | 40.5 | 34.7 | ||||||||||||||||||||||||||||||||||
Other reconciling items | 2.8 | (0.7 | ) | 1.9 | |||||||||||||||||||||||||||||||||
Total | $ | 38 | $ | 56.4 | $ | 54.7 | |||||||||||||||||||||||||||||||
Schedule of activity affecting the restructuring accrual | The following table sets forth the activity affecting the restructuring accrual during the three months ended June 30, 2013 (in millions of dollars). We expect 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. | The following table sets forth the activity affecting the restructuring accrual during the year ended December 31, 2012 (in millions of dollars). We expect to pay the remaining restructuring obligations relating to termination benefits over the next twelve 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 | Pension | Consultant | Other | Total | Termination | Pension | Consultant | Other | Total | ||||||||||||||||||||||||||||
Benefits | and Post-retirement | Costs | Benefits | and Post | Costs | ||||||||||||||||||||||||||||||||
Expense | Retirement | ||||||||||||||||||||||||||||||||||||
Balance as of January 1, 2013 | $ | 12.4 | $ | 0.2 | $ | 0.3 | $ | 8.1 | $ | 21 | Expense | ||||||||||||||||||||||||||
Balance as of January 1, 2011 | $ | 6.3 | $ | 0.2 | $ | 0.1 | $ | 10.9 | $ | 17.5 | |||||||||||||||||||||||||||
Charges incurred | 17.4 | — | 0.8 | 3.1 | 21.3 | Charges incurred | 14.4 | 0.4 | 1.3 | 40.3 | 56.4 | ||||||||||||||||||||||||||
Cash payments | (15.5 | ) | — | (0.6 | ) | (2.3 | ) | (18.4 | ) | ||||||||||||||||||||||||||||
Cash payments | (17.4 | ) | (0.2 | ) | (0.9 | ) | (1.5 | ) | (20.0 | ) | Other(1) | 3.9 | (0.4 | ) | (0.2 | ) | (37.2 | ) | (33.9 | ) | |||||||||||||||||
Other(1) | (0.3 | ) | — | — | (3.2 | ) | (3.5 | ) | |||||||||||||||||||||||||||||
Balance as of December 31, 2011 | $ | 9.1 | $ | 0.2 | $ | 0.6 | $ | 11.7 | $ | 21.6 | |||||||||||||||||||||||||||
Balance as of June 30, 2013 | $ | 12.1 | $ | — | $ | 0.2 | $ | 6.5 | $ | 18.8 | Charges incurred | 26.2 | 1 | 1.2 | 9.6 | 38 | |||||||||||||||||||||
Cash payments | (22.6 | ) | — | (0.9 | ) | (3.3 | ) | (26.8 | ) | ||||||||||||||||||||||||||||
_______________________________________________________________________________ | Other(2) | (0.3 | ) | (1.0 | ) | (0.6 | ) | (9.9 | ) | (11.8 | ) | ||||||||||||||||||||||||||
(1)Primarily consists of $3.2 million for facility closures and $0.3 million for foreign currency translation. | |||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2012 | $ | 12.4 | $ | 0.2 | $ | 0.3 | $ | 8.1 | $ | 21 | |||||||||||||||||||||||||||
-1 | |||||||||||||||||||||||||||||||||||||
Consists of decreases of $23.2 million for asset writedowns, $13.9 million for facility closures, $0.4 million in ASC 715 pension adjustment and $0.2 million of consultant costs, partly offset by a $3.8 million increase for involuntary benefits. | |||||||||||||||||||||||||||||||||||||
-2 | |||||||||||||||||||||||||||||||||||||
Primarily consists of decreases of $10.3 million for facility closures and $1.0 million in ASC 715 pension adjustment. | |||||||||||||||||||||||||||||||||||||
Financial_Instruments_Tables
Financial Instruments (Tables) | 6 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | ||||||||||||||||||||||||||||||||||||||||
Financial Instruments | |||||||||||||||||||||||||||||||||||||||||
Summary of financial assets and liabilities measured at fair value on a recurring basis | The following table summarizes the estimated fair value of derivatives (in millions of dollars): | The following table summarizes the estimated fair value of derivatives (in millions of dollars): | |||||||||||||||||||||||||||||||||||||||
Fair Value of Derivative Instruments(1) | Fair Value of Derivative Instruments(1) | ||||||||||||||||||||||||||||||||||||||||
Asset Derivatives(2) | Liability Derivatives(2) | Asset Derivatives(2) | Liability Derivatives(2) | ||||||||||||||||||||||||||||||||||||||
June 30, | December 31, | June 30, | December 31, | December 31, | December 31, | December 31, | December 31, | ||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2012 | 2011 | 2012 | 2011 | ||||||||||||||||||||||||||||||||||
Derivatives not designated as hedging | Derivatives not designated as hedging | ||||||||||||||||||||||||||||||||||||||||
instruments under ASC 815: | instruments under ASC 815: | ||||||||||||||||||||||||||||||||||||||||
Gasoline swaps | $ | — | $ | — | $ | 0.9 | $ | 0.1 | Gasoline swaps | $ | — | $ | — | $ | 0.1 | $ | 0.4 | ||||||||||||||||||||||||
Interest rate caps | 0.6 | 0.9 | 0.6 | 0.9 | Interest rate caps | 0.9 | 0.5 | 0.9 | 0.4 | ||||||||||||||||||||||||||||||||
Foreign exchange forward contracts | 4.8 | 3.4 | 1.9 | 4.5 | Foreign exchange forward contracts | 3.4 | 4.4 | 4.5 | 1.9 | ||||||||||||||||||||||||||||||||
Foreign exchange options | 0.1 | 0.2 | — | — | Interest rate swaps | — | — | — | 0.2 | ||||||||||||||||||||||||||||||||
Total derivatives not designated as hedging | Foreign exchange options | 0.2 | 0.1 | — | — | ||||||||||||||||||||||||||||||||||||
instruments under ASC 815 | $ | 5.5 | $ | 4.5 | $ | 3.4 | $ | 5.5 | |||||||||||||||||||||||||||||||||
Total derivatives not designated as hedging | |||||||||||||||||||||||||||||||||||||||||
_______________________________________________________________________________ | instruments under ASC 815 | $ | 4.5 | $ | 5 | $ | 5.5 | $ | 2.9 | ||||||||||||||||||||||||||||||||
-1 | All fair value measurements were primarily based upon significant observable (Level 2) inputs. | _______________________________________________________________________________ | |||||||||||||||||||||||||||||||||||||||
-2 | All asset derivatives are recorded in "Prepaid expenses and other assets" and all liability derivatives are recorded in "Accrued liabilities" on our condensed consolidated balance sheets. | -1 | All fair value measurements were primarily based upon significant observable (Level 2) inputs. | ||||||||||||||||||||||||||||||||||||||
-2 | All asset derivatives are recorded in "Prepaid expenses and other assets" and all liability derivatives are recorded in "Other accrued liabilities" on our consolidated balance sheets. | ||||||||||||||||||||||||||||||||||||||||
Schedule of gain (loss) on derivative instruments not designated as hedges recognized in income | The following table summarizes the gains and (losses) of derivatives (in millions of dollars): | Assets and liabilities measured at fair value on a recurring basis as of December 31, 2012 and 2011 were as follows (in millions): | |||||||||||||||||||||||||||||||||||||||
Location of Gain or (Loss) | Amount of Gain or | 31-Dec-12 | |||||||||||||||||||||||||||||||||||||||
Recognized on Derivatives | (Loss) Recognized in | Fair Value Measurements Using | |||||||||||||||||||||||||||||||||||||||
Income on Derivatives | Total | Quoted Prices in Active Markets | Significant | Significant | |||||||||||||||||||||||||||||||||||||
Three Months Ended | for Identical | Other | Unobservable | ||||||||||||||||||||||||||||||||||||||
June 30, | Instruments | Observable | Inputs | ||||||||||||||||||||||||||||||||||||||
2013 | 2012 | (Level 1) | Inputs | (Level 3) | |||||||||||||||||||||||||||||||||||||
Derivatives not designated as hedging | (Level 2) | ||||||||||||||||||||||||||||||||||||||||
instruments under ASC 815: | Prepaid Expenses and Other Current Assets: | ||||||||||||||||||||||||||||||||||||||||
Gasoline swaps | Direct operating | $ | (2.5 | ) | $ | (3.3 | ) | Interest rate caps | $ | 0.9 | $ | — | $ | 0.9 | $ | — | |||||||||||||||||||||||||
Interest rate caps | Selling, general and administrative | — | (0.1 | ) | |||||||||||||||||||||||||||||||||||||
Foreign currency forward contracts | 3.4 | — | 3.4 | — | |||||||||||||||||||||||||||||||||||||
Foreign exchange forward contracts | Selling, general and administrative | (7.1 | ) | (7.7 | ) | ||||||||||||||||||||||||||||||||||||
Foreign exchange options | Selling, general and administrative | — | 0.1 | Foreign exchange options | 0.2 | — | 0.2 | — | |||||||||||||||||||||||||||||||||
Total | $ | (9.6 | ) | $ | (11.0 | ) | Total | $ | 4.5 | $ | — | $ | 4.5 | $ | — | ||||||||||||||||||||||||||
Location of Gain or (Loss) | Amount of Gain or | Other Current Liabilities: | |||||||||||||||||||||||||||||||||||||||
Recognized on Derivatives | (Loss) Recognized in | Gasoline swaps | $ | 0.1 | $ | — | $ | 0.1 | $ | — | |||||||||||||||||||||||||||||||
Income on Derivatives | |||||||||||||||||||||||||||||||||||||||||
Six Months Ended | Interest rate caps | 0.9 | — | 0.9 | — | ||||||||||||||||||||||||||||||||||||
June 30, | |||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | Foreign currency forward contracts | 4.5 | — | 4.5 | — | |||||||||||||||||||||||||||||||||||
Derivatives not designated as hedging | |||||||||||||||||||||||||||||||||||||||||
instruments under ASC 815: | Total | $ | 5.5 | $ | — | $ | 5.5 | $ | — | ||||||||||||||||||||||||||||||||
Gasoline swaps | Direct operating | $ | (0.8 | ) | $ | (1.5 | ) | ||||||||||||||||||||||||||||||||||
Interest rate caps | Selling, general and administrative | 0.1 | (0.1 | ) | |||||||||||||||||||||||||||||||||||||
Foreign exchange forward contracts | Selling, general and administrative | (2.9 | ) | (5.6 | ) | 31-Dec-11 | |||||||||||||||||||||||||||||||||||
Foreign exchange options | Selling, general and administrative | (0.1 | ) | 0.1 | Fair Value Measurements Using | ||||||||||||||||||||||||||||||||||||
Total | Quoted Prices in Active Markets | Significant | Significant | ||||||||||||||||||||||||||||||||||||||
Total | $ | (3.7 | ) | $ | (7.1 | ) | for Identical | Other | Unobservable | ||||||||||||||||||||||||||||||||
Instruments | Observable | Inputs | |||||||||||||||||||||||||||||||||||||||
(Level 1) | Inputs | (Level 3) | |||||||||||||||||||||||||||||||||||||||
(Level 2) | |||||||||||||||||||||||||||||||||||||||||
Prepaid Expenses and Other Current Assets: | |||||||||||||||||||||||||||||||||||||||||
Interest rate caps | $ | 0.5 | $ | — | $ | 0.5 | $ | — | |||||||||||||||||||||||||||||||||
Foreign currency forward contracts | 4.4 | — | 4.4 | — | |||||||||||||||||||||||||||||||||||||
Foreign exchange options | 0.1 | — | 0.1 | — | |||||||||||||||||||||||||||||||||||||
Investment | 33.2 | 33.2 | — | — | |||||||||||||||||||||||||||||||||||||
Total | $ | 38.2 | $ | 33.2 | $ | 5 | $ | — | |||||||||||||||||||||||||||||||||
Other Current Liabilities: | |||||||||||||||||||||||||||||||||||||||||
Gasoline swaps | $ | 0.4 | $ | — | $ | 0.4 | $ | — | |||||||||||||||||||||||||||||||||
Interest rate caps | 0.4 | — | 0.4 | — | |||||||||||||||||||||||||||||||||||||
Foreign currency forward contracts | 1.9 | — | 1.9 | — | |||||||||||||||||||||||||||||||||||||
Interest rate swaps | 0.2 | 0.2 | |||||||||||||||||||||||||||||||||||||||
Total | $ | 2.9 | $ | — | $ | 2.9 | $ | — | |||||||||||||||||||||||||||||||||
The following table summarizes the (gains) and losses of derivatives (in millions of dollars): | |||||||||||||||||||||||||||||||||||||||||
Location of Gain or (Loss) | Amount of Gain or | ||||||||||||||||||||||||||||||||||||||||
Recognized on Derivatives | (Loss) Recognized in | ||||||||||||||||||||||||||||||||||||||||
Income on Derivatives | |||||||||||||||||||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||||||||||||||||||
2012 | 2011 | ||||||||||||||||||||||||||||||||||||||||
Derivatives not designated as hedging | |||||||||||||||||||||||||||||||||||||||||
instruments under ASC 815: | |||||||||||||||||||||||||||||||||||||||||
Gasoline swaps | Direct operating | $ | 0.7 | $ | 2.6 | ||||||||||||||||||||||||||||||||||||
Interest rate caps | Selling, general and administrative | (0.8 | ) | — | |||||||||||||||||||||||||||||||||||||
Foreign exchange forward contracts | Selling, general and administrative | (15.4 | ) | (11.0 | ) | ||||||||||||||||||||||||||||||||||||
Foreign exchange options | Selling, general and administrative | — | (0.2 | ) | |||||||||||||||||||||||||||||||||||||
Total | $ | (15.5 | ) | $ | (8.6 | ) | |||||||||||||||||||||||||||||||||||
Offsetting Assets | The impact of offsetting derivative instruments is depicted below (in millions of dollars): | ||||||||||||||||||||||||||||||||||||||||
As of June 30, 2013: | Gross amounts not offset in Balance Sheet | ||||||||||||||||||||||||||||||||||||||||
Gross assets | Gross assets offset in Balance Sheet | Net recognized assets in Balance Sheet | Financial Instruments | Cash Collateral | Net Amount | ||||||||||||||||||||||||||||||||||||
Interest rate caps | $ | 0.6 | $ | — | $ | 0.6 | $ | — | $ | — | $ | 0.6 | |||||||||||||||||||||||||||||
Foreign exchange forward contracts | 4.8 | — | 4.8 | (2.8 | ) | — | 2 | ||||||||||||||||||||||||||||||||||
Foreign exchange options | 0.1 | — | 0.1 | — | — | 0.1 | |||||||||||||||||||||||||||||||||||
Total | $ | 5.5 | $ | — | $ | 5.5 | $ | (2.8 | ) | $ | — | $ | 2.7 | ||||||||||||||||||||||||||||
Gross amounts not offset in Balance Sheet | |||||||||||||||||||||||||||||||||||||||||
Gross liabilities | Gross liabilities offset in Balance Sheet | Net recognized liabilities in Balance Sheet | Financial Instruments | Cash Collateral | Net Amount | ||||||||||||||||||||||||||||||||||||
Gasoline swaps | $ | 0.9 | $ | — | $ | 0.9 | $ | (0.9 | ) | $ | — | $ | — | ||||||||||||||||||||||||||||
Interest rate caps | 0.6 | — | 0.6 | — | — | 0.6 | |||||||||||||||||||||||||||||||||||
Foreign exchange forward contracts | 1.9 | — | 1.9 | (1.9 | ) | — | — | ||||||||||||||||||||||||||||||||||
Total | $ | 3.4 | $ | — | $ | 3.4 | $ | (2.8 | ) | $ | — | $ | 0.6 | ||||||||||||||||||||||||||||
As of December 31, 2012: | Gross amounts not offset in Balance Sheet | ||||||||||||||||||||||||||||||||||||||||
Gross assets | Gross assets offset in Balance Sheet | Net recognized assets in Balance Sheet | Financial Instruments | Cash Collateral | Net Amount | ||||||||||||||||||||||||||||||||||||
Interest rate caps | $ | 0.9 | $ | — | $ | 0.9 | $ | — | $ | — | $ | 0.9 | |||||||||||||||||||||||||||||
Foreign exchange forward contracts | 3.4 | — | 3.4 | (1.3 | ) | — | 2.1 | ||||||||||||||||||||||||||||||||||
Foreign exchange options | 0.2 | — | 0.2 | (0.2 | ) | — | — | ||||||||||||||||||||||||||||||||||
Total | $ | 4.5 | $ | — | $ | 4.5 | $ | (1.5 | ) | $ | — | $ | 3 | ||||||||||||||||||||||||||||
Gross amounts not offset in Balance Sheet | |||||||||||||||||||||||||||||||||||||||||
Gross liabilities | Gross liabilities offset in Balance Sheet | Net recognized liabilities in Balance Sheet | Financial Instruments | Cash Collateral | Net Amount | ||||||||||||||||||||||||||||||||||||
Interest rate caps | $ | 0.9 | $ | — | $ | 0.9 | $ | — | $ | — | $ | 0.9 | |||||||||||||||||||||||||||||
Gasoline swaps | 0.1 | — | 0.1 | — | — | 0.1 | |||||||||||||||||||||||||||||||||||
Foreign exchange forward contracts | 4.5 | — | 4.5 | (1.5 | ) | — | 3 | ||||||||||||||||||||||||||||||||||
Total | $ | 5.5 | $ | — | $ | 5.5 | $ | (1.5 | ) | $ | — | $ | 4 | ||||||||||||||||||||||||||||
Schedule of assets and liabilities measured at fair value on a recurring basis | Assets and liabilities measured at fair value on a recurring basis as of June 30, 2013 and December 31, 2012 were as follows (in millions): | ||||||||||||||||||||||||||||||||||||||||
June 30, 2013 | |||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||||||||||||||||||||||||||
Total | Quoted Prices in | Significant | Significant | ||||||||||||||||||||||||||||||||||||||
Active Markets | Other | Unobservable | |||||||||||||||||||||||||||||||||||||||
for Identical | Observable | Inputs | |||||||||||||||||||||||||||||||||||||||
Instruments | Inputs | (Level 3) | |||||||||||||||||||||||||||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||||||||||||||||||||||||||
Prepaid Expenses and Other Assets: | |||||||||||||||||||||||||||||||||||||||||
Interest rate caps | $ | 0.6 | $ | — | $ | 0.6 | $ | — | |||||||||||||||||||||||||||||||||
Foreign currency forward contracts | 4.8 | — | 4.8 | — | |||||||||||||||||||||||||||||||||||||
Foreign exchange options | 0.1 | — | 0.1 | — | |||||||||||||||||||||||||||||||||||||
Total | $ | 5.5 | $ | — | $ | 5.5 | $ | — | |||||||||||||||||||||||||||||||||
Other Liabilities: | |||||||||||||||||||||||||||||||||||||||||
Gasoline swaps | $ | 0.9 | $ | — | $ | 0.9 | $ | — | |||||||||||||||||||||||||||||||||
Interest rate caps | $ | 0.6 | $ | — | $ | 0.6 | $ | — | |||||||||||||||||||||||||||||||||
Foreign currency forward contracts | 1.9 | — | 1.9 | — | |||||||||||||||||||||||||||||||||||||
Total | $ | 3.4 | $ | — | $ | 3.4 | $ | — | |||||||||||||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||||||||||||||||||||||||||
Total | Quoted Prices in | Significant | Significant | ||||||||||||||||||||||||||||||||||||||
Active Markets | Other | Unobservable | |||||||||||||||||||||||||||||||||||||||
for Identical | Observable | Inputs | |||||||||||||||||||||||||||||||||||||||
Instruments | Inputs | (Level 3) | |||||||||||||||||||||||||||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||||||||||||||||||||||||||
Prepaid Expenses and Other Assets: | |||||||||||||||||||||||||||||||||||||||||
Interest rate caps | $ | 0.9 | $ | — | $ | 0.9 | $ | — | |||||||||||||||||||||||||||||||||
Foreign currency forward contracts | 3.4 | — | 3.4 | — | |||||||||||||||||||||||||||||||||||||
Foreign exchange options | 0.2 | — | 0.2 | — | |||||||||||||||||||||||||||||||||||||
Total | $ | 4.5 | $ | — | $ | 4.5 | $ | — | |||||||||||||||||||||||||||||||||
Other Liabilities: | |||||||||||||||||||||||||||||||||||||||||
Gasoline swaps | $ | 0.1 | $ | — | $ | 0.1 | $ | — | |||||||||||||||||||||||||||||||||
Interest rate caps | 0.9 | — | 0.9 | — | |||||||||||||||||||||||||||||||||||||
Foreign currency forward contracts | 4.5 | — | 4.5 | — | |||||||||||||||||||||||||||||||||||||
Total | $ | 5.5 | $ | — | $ | 5.5 | $ | — | |||||||||||||||||||||||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following table summarizes the changes in fair value measurement using Level 3 inputs for the three and six months ended June 30, 2013 (in millions of dollars): | ||||||||||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||||||||
30-Jun-13 | 30-Jun-13 | ||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements Using Level 3 Inputs Convertible Notes | |||||||||||||||||||||||||||||||||||||||||
Balance at the beginning of period | $ | — | $ | — | |||||||||||||||||||||||||||||||||||||
Realized gain (losses) included in earnings | — | — | |||||||||||||||||||||||||||||||||||||||
Unrealized gain related to investments | 2 | 2 | |||||||||||||||||||||||||||||||||||||||
Purchases | 130 | 130 | |||||||||||||||||||||||||||||||||||||||
Settlements | — | — | |||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2013 | $ | 132 | $ | 132 | |||||||||||||||||||||||||||||||||||||
Guarantor_and_NonGuarantor_Con1
Guarantor and Non-Guarantor Condensed Consolidating Financial Statements (Tables) | 6 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | |||||||||||||||||||||||||||||||||||||||
Guarantor and Non-Guarantor Condensed Consolidating Financial Statements | ||||||||||||||||||||||||||||||||||||||||
Schedule of condensed consolidating balance sheets | CONDENSED CONSOLIDATING BALANCE SHEET | CONDENSED CONSOLIDATING BALANCE SHEET | ||||||||||||||||||||||||||||||||||||||
30-Jun-13 | 31-Dec-12 | |||||||||||||||||||||||||||||||||||||||
(In Millions of Dollars) | (In Thousands of Dollars) | |||||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | Parent | Guarantor | Non- | Eliminations | The Hertz | |||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | (The Hertz | Subsidiaries | Guarantor | Corporation & | |||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | Corporation) | Subsidiaries | Subsidiaries | |||||||||||||||||||||||||||||||||||
ASSETS | ASSETS | |||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 87.5 | $ | 24.5 | $ | 371 | $ | — | $ | 483 | Cash and cash equivalents | $ | 24,602 | $ | 2,578 | $ | 506,055 | $ | — | $ | 533,235 | |||||||||||||||||||
Restricted cash and cash equivalents | 33.7 | 17 | 342.5 | — | 393.2 | Restricted cash and cash equivalents | 32,681 | 14,535 | 524,418 | — | 571,634 | |||||||||||||||||||||||||||||
Receivables, less allowance for doubtful accounts | 500.8 | 482.1 | 719.3 | (46.2 | ) | 1,656.00 | Receivables, less allowance for doubtful accounts | 544,454 | 292,467 | 1,049,675 | — | 1,886,596 | ||||||||||||||||||||||||||||
Due from Hertz affiliate | 1,042.70 | 1,842.70 | 3,691.70 | (6,576.3 | ) | 0.8 | Due from Hertz affiliate | 1,047,986 | 59,181 | 2,199,247 | (3,293,605 | ) | 12,809 | |||||||||||||||||||||||||||
Inventories, at lower cost or market | 30.8 | 39.8 | 57.7 | — | 128.3 | Inventories, at lower cost or market | 24,422 | 34,101 | 47,205 | — | 105,728 | |||||||||||||||||||||||||||||
Prepaid expenses and other assets | 2,894.70 | 244.3 | 407.2 | (2,783.0 | ) | 763.2 | Prepaid expenses and other assets | 2,570,539 | 183,573 | 203,678 | (2,496,288 | ) | 461,502 | |||||||||||||||||||||||||||
Revenue earning equipment, net | 175.3 | 1,893.00 | 13,637.70 | — | 15,706.00 | Revenue earning equipment, net | 104,207 | 1,734,325 | 11,069,804 | — | 12,908,336 | |||||||||||||||||||||||||||||
Property and equipment, net | 897.6 | 315.1 | 252.9 | — | 1,465.60 | Property and equipment, net | 865,694 | 206,332 | 364,360 | — | 1,436,386 | |||||||||||||||||||||||||||||
Investment in subsidiaries, net | 6,833.10 | 1,367.90 | — | (8,201.0 | ) | — | Investment in subsidiaries, net | 6,964,916 | 506,123 | — | (7,471,039 | ) | — | |||||||||||||||||||||||||||
Other intangible assets, net | 70.2 | 3,848.10 | 50.2 | — | 3,968.50 | Other intangible assets, net | 74,606 | 2,352,342 | 1,605,163 | — | 4,032,111 | |||||||||||||||||||||||||||||
Goodwill | 106.2 | 1,035.60 | 224.5 | — | 1,366.30 | Goodwill | 106,210 | 133,923 | 1,101,739 | — | 1,341,872 | |||||||||||||||||||||||||||||
Total assets | $ | 12,672.60 | $ | 11,110.10 | $ | 19,754.70 | $ | (17,606.5 | ) | $ | 25,930.90 | Total assets | $ | 12,360,317 | $ | 5,519,480 | $ | 18,671,344 | $ | (13,260,932 | ) | $ | 23,290,209 | |||||||||||||||||
LIABILITIES AND EQUITY | LIABILITIES AND EQUITY | |||||||||||||||||||||||||||||||||||||||
Due to Hertz affiliate | $ | 2,097.10 | $ | 2,498.80 | $ | 1,980.40 | $ | (6,576.3 | ) | $ | — | Due to Hertz affiliate | $ | 2,254,223 | $ | 628,275 | $ | 411,107 | $ | (3,293,605 | ) | $ | — | |||||||||||||||||
Accounts payable | 165.2 | 267.9 | 1,051.40 | — | 1,484.50 | Accounts payable | 239,247 | 157,742 | 602,072 | — | 999,061 | |||||||||||||||||||||||||||||
Accrued liabilities | 642.7 | 242.2 | 343.6 | (46.2 | ) | 1,182.30 | Accrued liabilities | 605,680 | 84,992 | 487,788 | — | 1,178,460 | ||||||||||||||||||||||||||||
Accrued taxes | 60.3 | 33.9 | 1,335.00 | (1,245.6 | ) | 183.6 | Accrued taxes | 54,357 | 11,511 | 1,003,127 | (901,681 | ) | 167,314 | |||||||||||||||||||||||||||
Debt | 7,042.30 | 68.5 | 10,283.40 | — | 17,394.20 | Debt | 6,190,040 | 49,445 | 8,774,989 | — | 15,014,474 | |||||||||||||||||||||||||||||
Public liability and property damage | 93 | 58.5 | 176 | — | 327.5 | Public liability and property damage | 99,261 | 10,390 | 222,581 | — | 332,232 | |||||||||||||||||||||||||||||
Deferred taxes on income | — | 2,232.70 | 2,091.50 | (1,537.4 | ) | 2,786.80 | Deferred taxes on income | — | 1,776,199 | 2,499,548 | (1,594,607 | ) | 2,681,140 | |||||||||||||||||||||||||||
Total liabilities | 10,100.60 | 5,402.50 | 17,261.30 | (9,405.5 | ) | 23,358.90 | Total liabilities | 9,442,808 | 2,718,554 | 14,001,212 | (5,789,893 | ) | 20,372,681 | |||||||||||||||||||||||||||
Equity: | Equity: | |||||||||||||||||||||||||||||||||||||||
The Hertz Corporation and Subsidiaries stockholder's equity | 2,572.00 | 5,707.60 | 2,493.40 | (8,201.0 | ) | 2,572.00 | The Hertz Corporation and Subsidiaries stockholder's equity | 2,917,509 | 2,800,926 | 4,670,113 | (7,471,039 | ) | 2,917,509 | |||||||||||||||||||||||||||
Noncontrolling interest | — | — | — | — | — | Noncontrolling interest | — | — | 19 | — | 19 | |||||||||||||||||||||||||||||
Total equity | 2,572.00 | 5,707.60 | 2,493.40 | (8,201.0 | ) | 2,572.00 | Total equity | 2,917,509 | 2,800,926 | 4,670,132 | (7,471,039 | ) | 2,917,528 | |||||||||||||||||||||||||||
Total liabilities and equity | $ | 12,672.60 | $ | 11,110.10 | $ | 19,754.70 | $ | (17,606.5 | ) | $ | 25,930.90 | Total liabilities and equity | $ | 12,360,317 | $ | 5,519,480 | $ | 18,671,344 | $ | (13,260,932 | ) | $ | 23,290,209 | |||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | CONDENSED CONSOLIDATING BALANCE SHEET | |||||||||||||||||||||||||||||||||||||||
31-Dec-12 | 31-Dec-11 | |||||||||||||||||||||||||||||||||||||||
(In Millions of Dollars) | (In Thousands of Dollars) | |||||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | Parent | Guarantor | Non- | Eliminations | The Hertz | |||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | (The Hertz | Subsidiaries | Guarantor | Corporation & | |||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | Corporation) | Subsidiaries | Subsidiaries | |||||||||||||||||||||||||||||||||||
ASSETS | ASSETS | |||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 24.6 | $ | 6.5 | $ | 502.1 | $ | — | $ | 533.2 | Cash and cash equivalents | $ | 565,002 | $ | 7,385 | $ | 358,821 | $ | — | $ | 931,208 | |||||||||||||||||||
Restricted cash and cash equivalents | 32.7 | 17.1 | 521.8 | — | 571.6 | Restricted cash and cash equivalents | 44,663 | 28,130 | 235,246 | — | 308,039 | |||||||||||||||||||||||||||||
Receivables, less allowance for doubtful accounts | 544.5 | 444 | 924.7 | (26.6 | ) | 1,886.60 | Receivables, less allowance for doubtful accounts | 297,292 | 218,754 | 1,100,336 | — | 1,616,382 | ||||||||||||||||||||||||||||
Due from Hertz affiliate | 1,048.00 | 2,023.50 | 3,491.70 | (6,550.4 | ) | 12.8 | Due from Hertz affiliate | 655,411 | 65,972 | 1,194,041 | (1,915,424 | ) | — | |||||||||||||||||||||||||||
Inventories, at lower cost or market | 24.4 | 41.2 | 40.1 | — | 105.7 | Inventories, at lower cost or market | 22,440 | 26,541 | 34,997 | — | 83,978 | |||||||||||||||||||||||||||||
Prepaid expenses and other assets | 2,570.50 | 277.8 | 173.3 | (2,560.1 | ) | 461.5 | Prepaid expenses and other assets | 2,088,579 | 32,974 | 137,189 | (1,842,608 | ) | 416,134 | |||||||||||||||||||||||||||
Revenue earning equipment, net | 104.2 | 1,678.50 | 11,125.60 | — | 12,908.30 | Revenue earning equipment, net | 167,304 | 1,505,867 | 8,432,238 | — | 10,105,409 | |||||||||||||||||||||||||||||
Property and equipment, net | 865.7 | 321.9 | 248.8 | — | 1,436.40 | Property and equipment, net | 824,381 | 170,874 | 256,599 | — | 1,251,854 | |||||||||||||||||||||||||||||
Investment in subsidiaries, net | 6,964.90 | 1,260.90 | — | (8,225.8 | ) | — | Investment in subsidiaries, net | 4,413,289 | 460,201 | — | (4,873,490 | ) | — | |||||||||||||||||||||||||||
Other intangible assets, net | 74.6 | 3,893.30 | 64.2 | — | 4,032.10 | Other intangible assets, net | 94,682 | 2,363,617 | 103,935 | — | 2,562,234 | |||||||||||||||||||||||||||||
Goodwill | 106.2 | 1,018.90 | 216.8 | — | 1,341.90 | Goodwill | 100,221 | 67,228 | 224,645 | — | 392,094 | |||||||||||||||||||||||||||||
Total assets | $ | 12,360.30 | $ | 10,983.60 | $ | 17,309.10 | $ | (17,362.9 | ) | $ | 23,290.10 | Total assets | $ | 9,273,264 | $ | 4,947,543 | $ | 12,078,047 | $ | (8,631,522 | ) | $ | 17,667,332 | |||||||||||||||||
LIABILITIES AND EQUITY | LIABILITIES AND EQUITY | |||||||||||||||||||||||||||||||||||||||
Due to Hertz affiliate | $ | 2,254.20 | $ | 2,421.60 | $ | 1,874.60 | $ | (6,550.4 | ) | $ | — | Due to Hertz affiliate | $ | 1,251,347 | $ | 266,604 | $ | 397,885 | $ | (1,915,424 | ) | $ | 412 | |||||||||||||||||
Accounts payable | 239.2 | 193.9 | 566 | — | 999.1 | Accounts payable | 188,695 | 165,258 | 543,536 | — | 897,489 | |||||||||||||||||||||||||||||
Accrued liabilities | 605.7 | 45 | 554.3 | (26.6 | ) | 1,178.40 | Accrued liabilities | 607,673 | 209,263 | 309,402 | — | 1,126,338 | ||||||||||||||||||||||||||||
Accrued taxes | 54.4 | 29.1 | 1,049.30 | (965.5 | ) | 167.3 | Accrued taxes | 54,559 | 134,186 | (13,889 | ) | (11,872 | ) | 162,984 | ||||||||||||||||||||||||||
Debt | 6,190.00 | 67.7 | 8,756.80 | — | 15,014.50 | Debt | 4,434,274 | 4,237 | 6,469,338 | — | 10,907,849 | |||||||||||||||||||||||||||||
Public liability and property damage | 99.3 | 52.8 | 180.1 | — | 332.2 | Public liability and property damage | 107,881 | 14,025 | 159,628 | — | 281,534 | |||||||||||||||||||||||||||||
Deferred taxes on income | — | 2,205.60 | 2,070.10 | (1,594.6 | ) | 2,681.10 | Deferred taxes on income | — | 1,449,171 | 2,043,437 | (1,830,736 | ) | 1,661,872 | |||||||||||||||||||||||||||
Total liabilities | 9,442.80 | 5,015.70 | 15,051.20 | (9,137.1 | ) | 20,372.60 | Total liabilities | 6,644,429 | 2,242,744 | 9,909,337 | (3,758,032 | ) | 15,038,478 | |||||||||||||||||||||||||||
Equity: | Equity: | |||||||||||||||||||||||||||||||||||||||
The Hertz Corporation and Subsidiaries stockholder's equity | 2,917.50 | 5,967.90 | 2,257.90 | (8,225.8 | ) | 2,917.50 | The Hertz Corporation and Subsidiaries stockholder's equity | 2,628,835 | 2,704,799 | 2,168,691 | (4,873,490 | ) | 2,628,835 | |||||||||||||||||||||||||||
Noncontrolling interest | — | — | — | — | — | Noncontrolling interest | — | — | 19 | — | 19 | |||||||||||||||||||||||||||||
Total equity | 2,917.50 | 5,967.90 | 2,257.90 | (8,225.8 | ) | 2,917.50 | Total equity | 2,628,835 | 2,704,799 | 2,168,710 | (4,873,490 | ) | 2,628,854 | |||||||||||||||||||||||||||
Total liabilities and equity | $ | 12,360.30 | $ | 10,983.60 | $ | 17,309.10 | $ | (17,362.9 | ) | $ | 23,290.10 | Total liabilities and equity | $ | 9,273,264 | $ | 4,947,543 | $ | 12,078,047 | $ | (8,631,522 | ) | $ | 17,667,332 | |||||||||||||||||
Schedule of condensed consolidating statement of operations | CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | ||||||||||||||||||||||||||||||||||||||
For the Three Months Ended June 30, 2013 | For the Year Ended December 31, 2012 | |||||||||||||||||||||||||||||||||||||||
(In Millions of Dollars) | (In Thousands of Dollars) | |||||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | Parent | Guarantor | Non-Guarantor | Eliminations | The Hertz | |||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | (The Hertz | Subsidiaries | Subsidiaries | Corporation & | |||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | Corporation) | Subsidiaries | ||||||||||||||||||||||||||||||||||||
Total revenues | $ | 1,147.00 | $ | 662.8 | $ | 1,617.50 | $ | (712.7 | ) | $ | 2,714.60 | Total revenues | $ | 4,259,049 | $ | 975,500 | $ | 6,255,039 | $ | (2,468,781 | ) | $ | 9,020,807 | |||||||||||||||||
Expenses: | Expenses: | |||||||||||||||||||||||||||||||||||||||
Direct operating | 2,384,829 | 553,099 | 1,857,860 | — | 4,795,788 | |||||||||||||||||||||||||||||||||||
Direct operating | 618.8 | 357.1 | 430.3 | (0.3 | ) | 1,405.90 | Depreciation of revenue earning equipment and lease charges | 2,402,032 | 198,322 | 2,016,585 | (2,468,781 | ) | 2,148,158 | |||||||||||||||||||||||||||
Selling, general and administrative | 448,100 | 123,300 | 374,181 | — | 945,581 | |||||||||||||||||||||||||||||||||||
Depreciation of revenue earning equipment and lease charges | 608 | 168.9 | 576.4 | (712.2 | ) | 641.1 | Interest expense, net of interest income | 253,437 | 39,679 | 299,770 | — | 592,886 | ||||||||||||||||||||||||||||
Other (income) expense, net | (10,656 | ) | (19 | ) | 46,217 | — | 35,542 | |||||||||||||||||||||||||||||||||
Selling, general and administrative | 122.3 | 64.7 | 88 | (0.2 | ) | 274.8 | ||||||||||||||||||||||||||||||||||
Total expenses | 5,477,742 | 914,381 | 4,594,613 | (2,468,781 | ) | 8,517,955 | ||||||||||||||||||||||||||||||||||
Interest expense | 88 | 8.5 | 73.7 | — | 170.2 | |||||||||||||||||||||||||||||||||||
Income (loss) before income taxes and equity in earnings (losses) of subsidiaries | (1,218,693 | ) | 61,119 | 1,660,426 | — | 502,852 | ||||||||||||||||||||||||||||||||||
Interest income | — | (1.6 | ) | (0.4 | ) | — | (2.0 | ) | (Provision) benefit for taxes on income | 476,444 | (44,846 | ) | (658,671 | ) | — | (227,073 | ) | |||||||||||||||||||||||
Equity in earnings (losses) of subsidiaries (net of tax) | 1,018,028 | 45,922 | — | (1,063,950 | ) | — | ||||||||||||||||||||||||||||||||||
Other (income) expense, net | 14.5 | (2.2 | ) | (13.4 | ) | — | (1.1 | ) | ||||||||||||||||||||||||||||||||
Net income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder | $ | 275,779 | $ | 62,195 | $ | 1,001,755 | $ | (1,063,950 | ) | $ | 275,779 | |||||||||||||||||||||||||||||
Total expenses | 1,451.60 | 595.4 | 1,154.60 | (712.7 | ) | 2,488.90 | ||||||||||||||||||||||||||||||||||
Income (loss) before income taxes and equity in earnings (losses) of subsidiaries | (304.6 | ) | 67.4 | 462.9 | — | 225.7 | ||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | ||||||||||||||||||||||||||||||||||||||||
(Provision) benefit for taxes on income | 109.3 | (25.2 | ) | (179.9 | ) | — | (95.8 | ) | For the Year Ended December 31, 2011 | |||||||||||||||||||||||||||||||
(In Thousands of Dollars) | ||||||||||||||||||||||||||||||||||||||||
Equity in earnings (losses) of subsidiaries (net of tax) | 325.2 | 56.8 | — | (382.0 | ) | — | ||||||||||||||||||||||||||||||||||
Net income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder | $ | 129.9 | $ | 99 | $ | 283 | $ | (382.0 | ) | $ | 129.9 | Parent | Guarantor | Non-Guarantor | Eliminations | The Hertz | ||||||||||||||||||||||||
(The Hertz | Subsidiaries | Subsidiaries | Corporation & | |||||||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | |||||||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | Total revenues | $ | 4,068,310 | $ | 809,093 | $ | 5,733,827 | $ | (2,312,850 | ) | $ | 8,298,380 | ||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2013 | ||||||||||||||||||||||||||||||||||||||||
(In Millions of Dollars) | Expenses: | |||||||||||||||||||||||||||||||||||||||
Direct operating | 2,262,371 | 497,053 | 1,806,954 | — | 4,566,378 | |||||||||||||||||||||||||||||||||||
Depreciation of revenue earning equipment and lease charges | 1,996,733 | 180,807 | 2,041,049 | (2,312,850 | ) | 1,905,739 | ||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | Selling, general and administrative | 326,794 | 85,414 | 332,909 | — | 745,117 | ||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | Interest expense, net of interest income | 299,099 | 27,226 | 318,378 | — | 644,703 | |||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | Other (income) expense, net | 62,396 | (18 | ) | 170 | — | 62,548 | |||||||||||||||||||||||||||||||
Total revenues | $ | 2,201.60 | $ | 1,284.90 | $ | 3,120.60 | $ | (1,455.9 | ) | $ | 5,151.20 | |||||||||||||||||||||||||||||
Total expenses | 4,947,393 | 790,482 | 4,499,460 | (2,312,850 | ) | 7,924,485 | ||||||||||||||||||||||||||||||||||
Expenses: | ||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes, noncontrolling interest and equity in earnings (losses) of subsidiaries | (879,083 | ) | 18,611 | 1,234,367 | — | 373,895 | ||||||||||||||||||||||||||||||||||
Direct operating | 1,231.70 | 710 | 815.9 | (0.5 | ) | 2,757.10 | (Provision) benefit for taxes on income (loss) | 342,469 | (10,016 | ) | (476,299 | ) | — | (143,846 | ) | |||||||||||||||||||||||||
Equity in earnings (losses) of subsidiaries (net of tax) | 747,103 | 26,215 | — | (773,318 | ) | — | ||||||||||||||||||||||||||||||||||
Depreciation of revenue earning equipment and lease charges | 1,269.40 | 321.3 | 1,092.60 | (1,455.2 | ) | 1,228.10 | ||||||||||||||||||||||||||||||||||
Net income (loss) | 210,489 | 34,810 | 758,068 | (773,318 | ) | 230,049 | ||||||||||||||||||||||||||||||||||
Selling, general and administrative | 229.5 | 124.4 | 172.6 | (0.2 | ) | 526.3 | Less: Net income attributable to noncontrolling interest | — | — | (19,560 | ) | — | (19,560 | ) | ||||||||||||||||||||||||||
Interest expense | 169.1 | 18.8 | 145.6 | — | 333.5 | Net income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder | $ | 210,489 | $ | 34,810 | $ | 738,508 | $ | (773,318 | ) | $ | 210,489 | |||||||||||||||||||||||
Interest income | — | (3.1 | ) | (0.7 | ) | — | (3.8 | ) | ||||||||||||||||||||||||||||||||
Other (income) expense, net | 14.3 | (2.2 | ) | (13.8 | ) | — | (1.7 | ) | CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | |||||||||||||||||||||||||||||||
For the Year Ended December 31, 2010 | ||||||||||||||||||||||||||||||||||||||||
Total expenses | 2,914.00 | 1,169.20 | 2,212.20 | (1,455.9 | ) | 4,839.50 | (In Thousands of Dollars) | |||||||||||||||||||||||||||||||||
Income (loss) before income taxes and equity in earnings (losses) of subsidiaries | (712.4 | ) | 115.7 | 908.4 | — | 311.7 | ||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | The Hertz | ||||||||||||||||||||||||||||||||||||
(Provision) benefit for taxes on income | 257.5 | (43.1 | ) | (369.7 | ) | — | (155.3 | ) | (The Hertz | Subsidiaries | Subsidiaries | Corporation & | ||||||||||||||||||||||||||||
Corporation) | Subsidiaries | |||||||||||||||||||||||||||||||||||||||
Equity in earnings (losses) of subsidiaries (net of tax) | 611.3 | 111.6 | — | (722.9 | ) | — | Total revenues | $ | 3,961,435 | $ | 701,264 | $ | 5,350,348 | $ | (2,450,513 | ) | $ | 7,562,534 | ||||||||||||||||||||||
Net income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder | $ | 156.4 | $ | 184.2 | $ | 538.7 | $ | (722.9 | ) | $ | 156.4 | Expenses: | ||||||||||||||||||||||||||||
Direct operating | 2,217,864 | 452,674 | 1,612,856 | — | 4,283,394 | |||||||||||||||||||||||||||||||||||
Depreciation of revenue earning equipment and lease charges | 1,938,416 | 200,252 | 2,179,992 | (2,450,513 | ) | 1,868,147 | ||||||||||||||||||||||||||||||||||
Selling, general and administrative | 320,192 | 67,739 | 276,511 | — | 664,442 | |||||||||||||||||||||||||||||||||||
Interest expense, net of interest income | 297,276 | 20,068 | 396,880 | — | 714,224 | |||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | Other (income) expense, net | 9,915 | (3 | ) | (9,907 | ) | — | 5 | ||||||||||||||||||||||||||||||||
For the Three Months Ended June 30, 2012 | ||||||||||||||||||||||||||||||||||||||||
(In Millions of Dollars) | Total expenses | 4,783,663 | 740,730 | 4,456,332 | (2,450,513 | ) | 7,530,212 | |||||||||||||||||||||||||||||||||
Income (loss) before income taxes, noncontrolling interest and equity in earnings (losses) of subsidiaries | (822,228 | ) | (39,466 | ) | 894,016 | — | 32,322 | |||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | (Provision) benefit for taxes on income (loss) | 314,692 | 10,718 | (358,732 | ) | — | (33,322 | ) | ||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | Equity in earnings (losses) of subsidiaries (net of tax) | 489,153 | (5,268 | ) | — | (483,885 | ) | — | |||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | ||||||||||||||||||||||||||||||||||||||
Total revenues | $ | 1,074.90 | $ | 233.1 | $ | 1,493.10 | $ | (576.0 | ) | $ | 2,225.10 | Net income (loss) | (18,383 | ) | (34,016 | ) | 535,284 | (483,885 | ) | (1,000 | ) | |||||||||||||||||||
Less: Net income attributable to noncontrolling interest | — | — | (17,383 | ) | — | (17,383 | ) | |||||||||||||||||||||||||||||||||
Expenses: | ||||||||||||||||||||||||||||||||||||||||
Direct operating | 609.4 | 141.1 | 438.4 | — | 1,188.90 | Net income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder | $ | (18,383 | ) | $ | (34,016 | ) | $ | 517,901 | $ | (483,885 | ) | $ | (18,383 | ) | ||||||||||||||||||||
Depreciation of revenue earning equipment and lease charges | 560.6 | 48 | 487.2 | (576.0 | ) | 519.8 | ||||||||||||||||||||||||||||||||||
Selling, general and administrative | 94.4 | 31.4 | 80.8 | — | 206.6 | |||||||||||||||||||||||||||||||||||
Interest expense | 56 | 9.1 | 74.2 | — | 139.3 | |||||||||||||||||||||||||||||||||||
Interest income | — | (0.2 | ) | (0.3 | ) | — | (0.5 | ) | ||||||||||||||||||||||||||||||||
Other (income) expense, net | — | — | (0.6 | ) | — | (0.6 | ) | |||||||||||||||||||||||||||||||||
Total expenses | 1,320.40 | 229.4 | 1,079.70 | (576.0 | ) | 2,053.50 | ||||||||||||||||||||||||||||||||||
Income (loss) before income taxes noncontrolling interest and equity in earnings (losses) of subsidiaries | (245.5 | ) | 3.7 | 413.4 | — | 171.6 | ||||||||||||||||||||||||||||||||||
(Provision) benefit for taxes on income | 90.7 | (1.3 | ) | (160.1 | ) | — | (70.7 | ) | ||||||||||||||||||||||||||||||||
Equity in earnings (losses) of subsidiaries (net of tax) | 255.7 | (33.8 | ) | — | (221.9 | ) | — | |||||||||||||||||||||||||||||||||
Net income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder | $ | 100.9 | $ | (31.4 | ) | $ | 253.3 | $ | (221.9 | ) | $ | 100.9 | ||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | ||||||||||||||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2012 | ||||||||||||||||||||||||||||||||||||||||
(In Millions of Dollars) | ||||||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | ||||||||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | |||||||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | ||||||||||||||||||||||||||||||||||||||
Total revenues | $ | 2,042.90 | $ | 442.9 | $ | 2,834.30 | $ | (1,134.0 | ) | $ | 4,186.10 | |||||||||||||||||||||||||||||
Expenses: | ||||||||||||||||||||||||||||||||||||||||
Direct operating | 1,181.20 | 274.4 | 847.5 | — | 2,303.10 | |||||||||||||||||||||||||||||||||||
Depreciation of revenue earning equipment and lease charges | 1,099.30 | 92.4 | 977.2 | (1,134.0 | ) | 1,034.90 | ||||||||||||||||||||||||||||||||||
Selling, general and administrative | 198.6 | 56.9 | 158.8 | — | 414.3 | |||||||||||||||||||||||||||||||||||
Interest expense | 119.6 | 19 | 150.2 | — | 288.8 | |||||||||||||||||||||||||||||||||||
Interest income | (0.1 | ) | (0.4 | ) | (1.1 | ) | — | (1.6 | ) | |||||||||||||||||||||||||||||||
Other (income) expense, net | — | — | (1.0 | ) | — | (1.0 | ) | |||||||||||||||||||||||||||||||||
Total expenses | 2,598.60 | 442.3 | 2,131.60 | (1,134.0 | ) | 4,038.50 | ||||||||||||||||||||||||||||||||||
Income (loss) before income taxes noncontrolling interest and equity in earnings (losses) of subsidiaries | (555.7 | ) | 0.6 | 702.7 | — | 147.6 | ||||||||||||||||||||||||||||||||||
(Provision) benefit for taxes on income | 201.9 | (0.6 | ) | (296.2 | ) | — | (94.9 | ) | ||||||||||||||||||||||||||||||||
Equity in earnings (losses) of subsidiaries (net of tax) | 406.5 | (22.6 | ) | — | (383.9 | ) | — | |||||||||||||||||||||||||||||||||
Net income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder | $ | 52.7 | $ | (22.6 | ) | $ | 406.5 | $ | (383.9 | ) | $ | 52.7 | ||||||||||||||||||||||||||||
Schedule of condensed consolidating comprehensive income (loss) | CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) | CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) | ||||||||||||||||||||||||||||||||||||||
For the Three Months Ended June 30, 2013 | For the Year Ended December 31, 2012 | |||||||||||||||||||||||||||||||||||||||
(In Millions of Dollars) | (In Thousands of Dollars) | |||||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | Parent | Guarantor | Non- | Eliminations | The Hertz | |||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | (The Hertz | Subsidiaries | Guarantor | Corporation & | |||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | Corporation) | Subsidiaries | Subsidiaries | |||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 129.9 | $ | 99 | $ | 283 | $ | (382.0 | ) | $ | 129.9 | Net income (loss) | $ | 275,779 | $ | 62,195 | $ | 1,001,755 | $ | (1,063,950 | ) | $ | 275,779 | |||||||||||||||||
Other comprehensive income (loss), net of tax | (22.2 | ) | (3.2 | ) | (24.4 | ) | 27.6 | (22.2 | ) | Other comprehensive income, net of tax | 1,522 | 121 | 6,816 | (6,937 | ) | 1,522 | ||||||||||||||||||||||||
Comprehensive income (loss) | $ | 107.7 | $ | 95.8 | $ | 258.6 | $ | (354.4 | ) | $ | 107.7 | Comprehensive income (loss) | $ | 277,301 | $ | 62,316 | $ | 1,008,571 | $ | (1,070,887 | ) | $ | 277,301 | |||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) | ||||||||||||||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2013 | CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) | |||||||||||||||||||||||||||||||||||||||
(In Millions of Dollars) | For the Year Ended December 31, 2011 | |||||||||||||||||||||||||||||||||||||||
(In Thousands of Dollars) | ||||||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | ||||||||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | Parent | Guarantor | Non- | Eliminations | The Hertz | ||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | (The Hertz | Subsidiaries | Guarantor | Corporation & | ||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 156.4 | $ | 184.2 | $ | 538.7 | $ | (722.9 | ) | $ | 156.4 | Corporation) | Subsidiaries | Subsidiaries | ||||||||||||||||||||||||||
Net income (loss) | $ | 210,489 | $ | 34,810 | $ | 758,068 | $ | (773,318 | ) | $ | 230,049 | |||||||||||||||||||||||||||||
Other comprehensive income, net of tax | (46.5 | ) | (0.4 | ) | (51.3 | ) | 51.8 | (46.4 | ) | |||||||||||||||||||||||||||||||
Other comprehensive income, net of tax | (66,237 | ) | — | (34,619 | ) | 34,619 | (66,237 | ) | ||||||||||||||||||||||||||||||||
Comprehensive income (loss) | 109.9 | 183.8 | 487.4 | (671.1 | ) | 110 | ||||||||||||||||||||||||||||||||||
Comprehensive income (loss) | 144,252 | 34,810 | 723,449 | (738,699 | ) | 163,812 | ||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) | Less: Comprehensive income attributable to noncontrolling interest | — | — | (19,560 | ) | — | (19,560 | ) | ||||||||||||||||||||||||||||||||
For the Three Months Ended June 30, 2012 | ||||||||||||||||||||||||||||||||||||||||
(In Millions of Dollars) | Comprehensive income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder | $ | 144,252 | $ | 34,810 | $ | 703,889 | $ | (738,699 | ) | $ | 144,252 | ||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) | |||||||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | For the Year Ended December 31, 2010 | ||||||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | (In Thousands of Dollars) | |||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 100.9 | $ | (31.4 | ) | $ | 253.3 | $ | (221.9 | ) | $ | 100.9 | ||||||||||||||||||||||||||||
Other comprehensive income, net of tax | (42.0 | ) | — | (45.6 | ) | 45.6 | (42.0 | ) | Parent | Guarantor | Non- | Eliminations | The Hertz | |||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | |||||||||||||||||||||||||||||||||||||
Comprehensive income (loss) | 58.9 | (31.4 | ) | 207.7 | (176.3 | ) | 58.9 | Corporation) | Subsidiaries | Subsidiaries | ||||||||||||||||||||||||||||||
Net income (loss) | $ | (18,383 | ) | $ | (34,016 | ) | $ | 535,284 | $ | (483,885 | ) | $ | (1,000 | ) | ||||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) | Other comprehensive income, net of tax | 41,154 | — | 28,427 | (28,427 | ) | 41,154 | |||||||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2012 | ||||||||||||||||||||||||||||||||||||||||
(In Millions of Dollars) | Comprehensive income (loss) | 22,771 | (34,016 | ) | 563,711 | (512,312 | ) | 40,154 | ||||||||||||||||||||||||||||||||
Less: Comprehensive income attributable to noncontrolling interest | — | — | (17,383 | ) | — | (17,383 | ) | |||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | ||||||||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | Comprehensive income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder | $ | 22,771 | $ | (34,016 | ) | $ | 546,328 | $ | (512,312 | ) | $ | 22,771 | ||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | ||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 52.7 | $ | (22.6 | ) | $ | 406.5 | $ | (383.9 | ) | $ | 52.7 | ||||||||||||||||||||||||||||
Other comprehensive income, net of tax | (9.6 | ) | — | (16.4 | ) | 16.4 | (9.6 | ) | ||||||||||||||||||||||||||||||||
Comprehensive income (loss) | 43.1 | (22.6 | ) | 390.1 | (367.5 | ) | 43.1 | |||||||||||||||||||||||||||||||||
Schedule of condensed consolidating statement of cash flows | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||||||||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2013 | For the Year Ended December 31, 2012 | |||||||||||||||||||||||||||||||||||||||
(In Millions of Dollars) | (In Thousands of Dollars) | |||||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | The Hertz | ||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | (The Hertz | Subsidiaries | Subsidiaries | Corporation & | ||||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | Corporation) | Subsidiaries | |||||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | Net cash provided by (used in) operating activities | $ | 1,677,648 | $ | 690,292 | $ | 1,155,789 | $ | (775,317 | ) | $ | 2,748,412 | ||||||||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | (365.7 | ) | $ | 425.1 | $ | 1,811.90 | $ | (405.3 | ) | $ | 1,466.00 | ||||||||||||||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||||||||||||||||||
Cash flows from investing activities: | Net change in restricted cash and cash equivalents | 11,981 | 13,596 | (287,182 | ) | — | (261,605 | ) | ||||||||||||||||||||||||||||||||
Net change in restricted cash and cash equivalents | (1.0 | ) | 0.2 | 176.2 | — | 175.4 | Revenue earning equipment expenditures | (88,120 | ) | (763,610 | ) | (8,761,509 | ) | — | (9,613,239 | ) | ||||||||||||||||||||||||
Proceeds from disposal of revenue earning equipment | 79,390 | 276,342 | 6,769,364 | — | 7,125,096 | |||||||||||||||||||||||||||||||||||
Revenue earning equipment expenditures | (87.9 | ) | (347.7 | ) | (6,389.9 | ) | — | (6,825.5 | ) | Property and equipment expenditures | (173,053 | ) | (32,022 | ) | (107,711 | ) | — | (312,786 | ) | |||||||||||||||||||||
Proceeds from disposal of property and equipment | 67,370 | 11,839 | 58,485 | — | 137,694 | |||||||||||||||||||||||||||||||||||
Proceeds from disposal of revenue earning equipment | 47.7 | 16.9 | 3,678.20 | — | 3,742.80 | Capital contributions to subsidiaries | (4,267,118 | ) | — | — | 4,267,118 | — | ||||||||||||||||||||||||||||
Return of capital from subsidiaries | 1,829,256 | — | — | (1,829,256 | ) | — | ||||||||||||||||||||||||||||||||||
Property and equipment expenditures | (99.1 | ) | (18.0 | ) | (51.0 | ) | — | (168.1 | ) | Loan to Parent From Non-Guarantor | — | — | (385,108 | ) | 385,108 | — | ||||||||||||||||||||||||
Acquisitions, net of cash acquired | (1,708,520 | ) | (196,648 | ) | — | — | (1,905,168 | ) | ||||||||||||||||||||||||||||||||
Proceeds from disposal of property and equipment | 24.6 | 5.5 | 12.4 | — | 42.5 | Proceeds from disposal of business | — | — | 84,497 | — | 84,497 | |||||||||||||||||||||||||||||
Other investing activities | — | — | (1,779 | ) | — | (1,779 | ) | |||||||||||||||||||||||||||||||||
Capital contributions to subsidiaries | (485.7 | ) | — | — | 485.7 | — | ||||||||||||||||||||||||||||||||||
Net cash provided by (used in) investing activities | (4,248,814 | ) | (690,503 | ) | (2,630,943 | ) | 2,822,970 | (4,747,290 | ) | |||||||||||||||||||||||||||||||
Return of capital from subsidiaries | 651 | — | — | (651.0 | ) | — | ||||||||||||||||||||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||||||||||||||||||
Loan to Parent/Guarantor from Non-Guarantor | — | — | 57 | (57.0 | ) | — | Proceeds from issuance of long-term debt | 2,210,000 | — | 27,280 | — | 2,237,280 | ||||||||||||||||||||||||||||
Payment of long-term debt | (650,407 | ) | (18 | ) | (301,719 | ) | — | (952,144 | ) | |||||||||||||||||||||||||||||||
Acquisitions, net of cash acquired | — | (2.8 | ) | (226.4 | ) | — | (229.2 | ) | Short-term borrowings: | |||||||||||||||||||||||||||||||
Proceeds | — | — | 438,387 | — | 438,387 | |||||||||||||||||||||||||||||||||||
Proceeds from disposal of business | — | — | — | — | — | Payments | (26,775 | ) | — | (1,253,368 | ) | — | (1,280,143 | ) | ||||||||||||||||||||||||||
Proceeds (payments) under the revolving lines of credit, net | 220,000 | (1,262 | ) | 1,054,426 | — | 1,273,164 | ||||||||||||||||||||||||||||||||||
Other investing activities | — | — | (2.0 | ) | — | (2.0 | ) | Capital contributions received from parent | — | — | 4,267,118 | (4,267,118 | ) | — | ||||||||||||||||||||||||||
Loan to Parent From Non-Guarantor | 385,108 | — | — | (385,108 | ) | — | ||||||||||||||||||||||||||||||||||
Net cash provided by (used in) investing activities | 49.6 | (345.9 | ) | (2,745.5 | ) | (222.3 | ) | (3,264.1 | ) | Payment of dividends and return of capital | — | — | (2,604,573 | ) | 2,604,573 | — | ||||||||||||||||||||||||
Dividends paid | (25,000 | ) | — | — | — | (25,000 | ) | |||||||||||||||||||||||||||||||||
Cash flows from financing activities: | Proceeds from employee stock purchase plan | 4,275 | — | — | — | 4,275 | ||||||||||||||||||||||||||||||||||
Loan with Hertz Global Holdings, Inc. | (13,220 | ) | — | — | — | (13,220 | ) | |||||||||||||||||||||||||||||||||
Proceeds from issuance of long-term debt | 250 | — | 954.4 | — | 1,204.40 | Purchase of noncontrolling interest | (38,000 | ) | — | — | — | (38,000 | ) | |||||||||||||||||||||||||||
Payment of financing costs | (35,215 | ) | (3,316 | ) | (10,902 | ) | — | (49,433 | ) | |||||||||||||||||||||||||||||||
Payment of long-term debt | (22.8 | ) | — | (297.9 | ) | — | (320.7 | ) | ||||||||||||||||||||||||||||||||
Net cash provided by (used in) financing activities | 2,030,766 | (4,596 | ) | 1,616,649 | (2,047,653 | ) | 1,595,166 | |||||||||||||||||||||||||||||||||
Short-term borrowings: | ||||||||||||||||||||||||||||||||||||||||
Effect of foreign exchange rate changes on cash and cash equivalents | — | — | 5,739 | — | 5,739 | |||||||||||||||||||||||||||||||||||
Proceeds | — | — | 332 | — | 332 | |||||||||||||||||||||||||||||||||||
Net change in cash and cash equivalents during the period | (540,400 | ) | (4,807 | ) | 147,234 | — | (397,973 | ) | ||||||||||||||||||||||||||||||||
Payments | — | — | (435.9 | ) | — | (435.9 | ) | Cash and cash equivalents at beginning of period | 565,002 | 7,385 | 358,821 | — | 931,208 | |||||||||||||||||||||||||||
Proceeds under the revolving lines of credit | 1,360.00 | 1.6 | 2,318.50 | — | 3,680.10 | Cash and cash equivalents at end of period | $ | 24,602 | $ | 2,578 | $ | 506,055 | $ | — | $ | 533,235 | ||||||||||||||||||||||||
Payments under the revolving lines of credit | (735.0 | ) | (5.0 | ) | (1,477.9 | ) | — | (2,217.9 | ) | |||||||||||||||||||||||||||||||
Capital contributions received from parent | — | — | 485.7 | (485.7 | ) | — | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | |||||||||||||||||||||||||||||||||
For the Year Ended December 31, 2011 | ||||||||||||||||||||||||||||||||||||||||
Loan to Parent/Guarantor from Non-Guarantor | — | (57.0 | ) | — | 57 | — | (In Thousands of Dollars) | |||||||||||||||||||||||||||||||||
Payment of dividends and return of capital | — | — | (1,056.3 | ) | 1,056.30 | — | ||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | The Hertz | ||||||||||||||||||||||||||||||||||||
Dividends paid to Parent | (479.7 | ) | — | — | — | (479.7 | ) | (The Hertz | Subsidiaries | Subsidiaries | Corporation & | |||||||||||||||||||||||||||||
Corporation) | Subsidiaries | |||||||||||||||||||||||||||||||||||||||
Proceeds from employee stock purchase plan | 2.4 | — | — | — | 2.4 | Net cash provided by (used in) operating activities | $ | 1,000,597 | $ | 773,170 | $ | 1,038,124 | $ | (553,370 | ) | $ | 2,258,521 | |||||||||||||||||||||||
Loan with Hertz Global Holdings, Inc. | 12 | — | — | — | 12 | Cash flows from investing activities: | ||||||||||||||||||||||||||||||||||
Net change in restricted cash and cash equivalents | (28,570 | ) | (2,662 | ) | (70,534 | ) | — | (101,766 | ) | |||||||||||||||||||||||||||||||
Payment of financing costs | (7.9 | ) | (0.8 | ) | (11.9 | ) | — | (20.6 | ) | Revenue earning equipment expenditures | (142,134 | ) | (670,056 | ) | (8,642,121 | ) | — | (9,454,311 | ) | |||||||||||||||||||||
Proceeds from disposal of revenue earning equipment | 163,330 | 170,522 | 7,516,590 | — | 7,850,442 | |||||||||||||||||||||||||||||||||||
Net cash provided by (used in) financing activities | 379 | (61.2 | ) | 810.7 | 627.6 | 1,756.10 | Property and equipment expenditures | (189,562 | ) | (29,696 | ) | (62,437 | ) | — | (281,695 | ) | ||||||||||||||||||||||||
Proceeds from disposal of property and equipment | 23,952 | 9,263 | 20,599 | — | 53,814 | |||||||||||||||||||||||||||||||||||
Effect of foreign exchange rate changes on cash and cash equivalents | — | — | (8.2 | ) | — | (8.2 | ) | Capital contributions to subsidiaries | (3,549,088 | ) | — | — | 3,549,088 | — | ||||||||||||||||||||||||||
Return of capital from subsidiaries | 2,590,025 | — | — | (2,590,025 | ) | — | ||||||||||||||||||||||||||||||||||
Net change in cash and cash equivalents during the period | 62.9 | 18 | (131.1 | ) | — | (50.2 | ) | Loan to Parent from Non-Guarantor | — | — | (490,273 | ) | 490,273 | — | ||||||||||||||||||||||||||
Acquisitions, net of cash acquired | (214,384 | ) | (2,100 | ) | (10,597 | ) | — | (227,081 | ) | |||||||||||||||||||||||||||||||
Cash and cash equivalents at beginning of period | 24.6 | 6.5 | 502.1 | — | 533.2 | Purchase of short-term investments, net | (32,891 | ) | — | — | — | (32,891 | ) | |||||||||||||||||||||||||||
Other investing activities | — | (13,602 | ) | 14,188 | — | 586 | ||||||||||||||||||||||||||||||||||
Cash and cash equivalents at end of period | $ | 87.5 | $ | 24.5 | $ | 371 | $ | — | $ | 483 | ||||||||||||||||||||||||||||||
Net cash provided by (used in) investing activities | (1,379,322 | ) | (538,331 | ) | (1,724,585 | ) | 1,449,336 | (2,192,902 | ) | |||||||||||||||||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | Proceeds from issuance of long-term debt | 2,455,309 | — | 607,170 | — | 3,062,479 | ||||||||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2012 | Payment of long-term debt | (3,596,295 | ) | (17 | ) | (52,988 | ) | — | (3,649,300 | ) | ||||||||||||||||||||||||||||||
(In Millions of Dollars) | Short-term borrowings: | |||||||||||||||||||||||||||||||||||||||
Proceeds | — | — | 460,890 | — | 460,890 | |||||||||||||||||||||||||||||||||||
Payments | (29,224 | ) | — | (1,164,832 | ) | — | (1,194,056 | ) | ||||||||||||||||||||||||||||||||
Proceeds (payments) under the revolving lines of credit, net | (29,128 | ) | (229,778 | ) | 201,577 | — | (57,329 | ) | ||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | Distributions to noncontrolling interest | — | — | (23,100 | ) | — | (23,100 | ) | ||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | Capital contributions received from parent | — | — | 3,549,088 | (3,549,088 | ) | — | ||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | Payment of dividends and return of capital | (22,950 | ) | — | (3,143,395 | ) | 3,143,395 | (22,950 | ) | |||||||||||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | (219.0 | ) | $ | 334.2 | $ | 1,409.30 | $ | (341.5 | ) | $ | 1,183.00 | Proceeds from employee stock purchase plan | 3,577 | — | — | — | 3,577 | ||||||||||||||||||||||
Loan to Parent from Non-Guarantor | 490,273 | — | — | (490,273 | ) | — | ||||||||||||||||||||||||||||||||||
Cash flows from investing activities: | Loan from Hertz Global Holdings, Inc. | (984 | ) | — | — | — | (984 | ) | ||||||||||||||||||||||||||||||||
Payment of financing costs | (81,229 | ) | (2,817 | ) | (7,436 | ) | — | (91,482 | ) | |||||||||||||||||||||||||||||||
Net change in restricted cash and cash equivalents | 12.6 | 18.2 | 99.3 | — | 130.1 | |||||||||||||||||||||||||||||||||||
Net cash provided by (used in) financing activities | (810,651 | ) | (232,612 | ) | 426,974 | (895,966 | ) | (1,512,255 | ) | |||||||||||||||||||||||||||||||
Revenue earning equipment expenditures | (73.8 | ) | (334.1 | ) | (5,303.1 | ) | — | (5,711.0 | ) | |||||||||||||||||||||||||||||||
Effect of foreign exchange rate changes on cash and cash equivalents | — | — | 3,838 | — | 3,838 | |||||||||||||||||||||||||||||||||||
Proceeds from disposal of revenue earning equipment | 54.4 | 162.6 | 3,391.30 | — | 3,608.30 | |||||||||||||||||||||||||||||||||||
Net decrease in cash and cash equivalents during the period | (1,189,376 | ) | 2,227 | (255,649 | ) | — | (1,442,798 | ) | ||||||||||||||||||||||||||||||||
Property and equipment expenditures | (80.2 | ) | (24.2 | ) | (32.8 | ) | — | (137.2 | ) | Cash and cash equivalents at beginning of period | 1,754,378 | 5,158 | 614,470 | — | 2,374,006 | |||||||||||||||||||||||||
Proceeds from disposal of property and equipment | 44.3 | 4.2 | 7.9 | — | 56.4 | Cash and cash equivalents at end of period | $ | 565,002 | $ | 7,385 | $ | 358,821 | $ | — | $ | 931,208 | ||||||||||||||||||||||||
Capital contributions to subsidiaries | (2,215.9 | ) | — | — | 2,215.90 | — | ||||||||||||||||||||||||||||||||||
Return of capital from subsidiaries | 2,220.60 | — | — | (2,220.6 | ) | — | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | |||||||||||||||||||||||||||||||||
For the Year Ended December 31, 2010 | ||||||||||||||||||||||||||||||||||||||||
Acquisitions, net of cash acquired | — | (161.8 | ) | — | — | (161.8 | ) | (In Thousands of Dollars) | ||||||||||||||||||||||||||||||||
Loan to Parent from Non-Guarantor | — | — | (18.3 | ) | 18.3 | — | ||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | The Hertz | ||||||||||||||||||||||||||||||||||||
Other investing activities | — | — | (0.6 | ) | — | (0.6 | ) | (The Hertz | Subsidiaries | Subsidiaries | Corporation & | |||||||||||||||||||||||||||||
Corporation) | Subsidiaries | |||||||||||||||||||||||||||||||||||||||
Net cash provided by (used in) investing activities | (38.0 | ) | (335.1 | ) | (1,856.3 | ) | 13.6 | (2,215.8 | ) | Net cash provided by (used in) operating activities | $ | 337,055 | $ | 88,941 | $ | 2,193,486 | $ | (381,555 | ) | $ | 2,237,927 | |||||||||||||||||||
Cash flows from financing activities: | Cash flows from investing activities: | |||||||||||||||||||||||||||||||||||||||
Proceeds from issuance of long-term debt | 260 | — | 10.5 | — | 270.5 | Net change in restricted cash and cash equivalents | 19,932 | (17,514 | ) | 158,098 | — | 160,516 | ||||||||||||||||||||||||||||
Revenue earning equipment expenditures | (188,057 | ) | (96,452 | ) | (8,156,363 | ) | — | (8,440,872 | ) | |||||||||||||||||||||||||||||||
Payment of long-term debt | (637.3 | ) | — | (5.8 | ) | — | (643.1 | ) | Proceeds from disposal of revenue earning equipment | 169,451 | 75,139 | 7,273,856 | — | 7,518,446 | ||||||||||||||||||||||||||
Property and equipment expenditures | (92,415 | ) | (14,137 | ) | (72,657 | ) | — | (179,209 | ) | |||||||||||||||||||||||||||||||
Short-term borrowings: | Proceeds from disposal of property and equipment | 4,311 | 10,416 | 24,178 | — | 38,905 | ||||||||||||||||||||||||||||||||||
Capital contributions to subsidiaries | (1,544,332 | ) | — | — | 1,544,332 | — | ||||||||||||||||||||||||||||||||||
Proceeds | — | — | 246.7 | — | 246.7 | Return of capital from subsidiaries | 1,877,095 | — | — | (1,877,095 | ) | — | ||||||||||||||||||||||||||||
Acquisitions, net of cash acquired | (35 | ) | (43,789 | ) | (3,747 | ) | — | (47,571 | ) | |||||||||||||||||||||||||||||||
Payments | (26.8 | ) | — | (629.4 | ) | — | (656.2 | ) | Purchase of short-term investments, net | 3,183 | 94 | 214 | — | 3,491 | ||||||||||||||||||||||||||
Other investing activities | — | — | 2,726 | — | 2,726 | |||||||||||||||||||||||||||||||||||
Proceeds under the revolving lines of credit | 1,360.00 | 1.9 | 2,173.60 | — | 3,535.50 | |||||||||||||||||||||||||||||||||||
Net cash provided by (used in) investing activities | 249,133 | (86,243 | ) | (773,695 | ) | (332,763 | ) | (943,568 | ) | |||||||||||||||||||||||||||||||
Payments under the revolving lines of credit | (950.0 | ) | (2.9 | ) | (1,038.8 | ) | — | (1,991.7 | ) | |||||||||||||||||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||||||||||||||||||
Purchase of noncontrolling interest | (38.0 | ) | — | — | — | (38.0 | ) | Proceeds from issuance of long-term debt | 1,209,866 | — | 1,425,847 | — | 2,635,713 | |||||||||||||||||||||||||||
Payment of long-term debt | (73,342 | ) | (68 | ) | (2,880,823 | ) | — | (2,954,233 | ) | |||||||||||||||||||||||||||||||
Capital contributions received from parent | — | — | 2,215.90 | (2,215.9 | ) | — | Short-term borrowings: | |||||||||||||||||||||||||||||||||
Proceeds | — | — | 490,490 | — | 490,490 | |||||||||||||||||||||||||||||||||||
Payment of dividends and return of capital | (12.5 | ) | — | (2,562.1 | ) | 2,562.10 | (12.5 | ) | Payments | (2,615 | ) | — | (968,334 | ) | — | (970,949 | ) | |||||||||||||||||||||||
Proceeds (payments) under the revolving lines of credit, net | (18,907 | ) | (3,515 | ) | 1,048,492 | — | 1,026,070 | |||||||||||||||||||||||||||||||||
Repayment of Loan to Parent from Non-Guarantor | 18.3 | — | — | (18.3 | ) | — | Distributions to noncontrolling interest | — | — | (18,200 | ) | — | (18,200 | ) | ||||||||||||||||||||||||||
Capital contributions received from parent | — | — | 1,544,332 | (1,544,332 | ) | — | ||||||||||||||||||||||||||||||||||
Proceeds from employee stock purchase plan | 2 | — | — | — | 2 | Payment of dividends and return of capital | (23,000 | ) | — | (2,258,650 | ) | 2,258,650 | (23,000 | ) | ||||||||||||||||||||||||||
Proceeds from employee stock purchase plan | 3,208 | — | — | — | 3,208 | |||||||||||||||||||||||||||||||||||
Loan from Hertz Global Holdings, Inc. | (13.9 | ) | — | — | — | (13.9 | ) | Loan from Hertz Global Holdings, Inc. | (6,173 | ) | — | — | — | (6,173 | ) | |||||||||||||||||||||||||
Excess tax benefits from exercise of stock | (258 | ) | — | — | — | (258 | ) | |||||||||||||||||||||||||||||||||
Payment of financing costs | (4.2 | ) | (1.5 | ) | (1.2 | ) | — | (6.9 | ) | Payment of financing costs | (29,111 | ) | — | (49,040 | ) | — | (78,151 | ) | ||||||||||||||||||||||
Net cash provided by (used in) financing activities | (42.4 | ) | (2.5 | ) | 409.4 | 327.9 | 692.4 | Net cash provided by (used in) financing activities | 1,059,668 | (3,583 | ) | (1,665,886 | ) | 714,318 | 104,517 | |||||||||||||||||||||||||
Effect of foreign exchange rate changes on cash and cash equivalents | — | — | (4.8 | ) | — | (4.8 | ) | Effect of foreign exchange rate changes on cash and cash equivalents | — | — | (10,337 | ) | — | (10,337 | ) | |||||||||||||||||||||||||
Net decrease in cash and cash equivalents during the period | (299.4 | ) | (3.4 | ) | (42.4 | ) | — | (345.2 | ) | Net decrease in cash and cash equivalents during the period | 1,645,856 | (885 | ) | (256,432 | ) | — | 1,388,539 | |||||||||||||||||||||||
Cash and cash equivalents at beginning of period | 108,522 | 6,043 | 870,902 | — | 985,467 | |||||||||||||||||||||||||||||||||||
Cash and cash equivalents at beginning of period | 565 | 7.4 | 358.8 | — | 931.2 | |||||||||||||||||||||||||||||||||||
Cash and cash equivalents at end of period | $ | 1,754,378 | $ | 5,158 | $ | 614,470 | $ | — | $ | 2,374,006 | ||||||||||||||||||||||||||||||
Cash and cash equivalents at end of period | $ | 265.6 | $ | 4 | $ | 316.4 | $ | — | $ | 586 | ||||||||||||||||||||||||||||||
Background_Details
Background (Details) | Jun. 30, 2013 |
Background | |
Parent Interest in Reporting Entity | 100.00% |
Percentage Held in Parent by Ultimate Parent | 100.00% |
Cash_and_Cash_Equivalents_and_1
Cash and Cash Equivalents and Restricted Cash and Cash Equivalents (Details) (USD $) | 6 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Restricted cash and cash equivalents | |||||
Maximum original maturity period of highly liquid debt instruments to be considered as cash equivalents | 3 months | 3 months | |||
Restricted cash and cash equivalents | $393,200 | $571,634 | $308,039 | ||
Net change in restricted cash and cash equivalents | -175,400 | -130,100 | 261,605 | 101,766 | -160,516 |
Fleet debt | |||||
Restricted cash and cash equivalents | |||||
Restricted cash and cash equivalents | 351,600 | 494,000 | |||
Net change in restricted cash and cash equivalents | ($142,400) |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets (Details) (USD $) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Goodwill | |||
Balance at the beginning of the period | $2,062,900,000 | $1,113,100,000 | $1,049,600,000 |
Accumulated impairment losses at the beginning of the period | -721,000,000 | -721,000,000 | -721,000,000 |
Net goodwill, balance at the beginning of the period | 1,341,872,000 | 392,094,000 | 328,600,000 |
Goodwill acquired during the period | 9,400,000 | 966,900,000 | 65,400,000 |
Adjustments to previously recorded purchase price allocation | 16,700,000 | -15,300,000 | -1,000,000 |
Other changes during the period | -1,700,000 | -1,800,000 | -900,000 |
Total changes in goodwill | 24,400,000 | 949,800,000 | 63,500,000 |
Balance at the end of the period | 2,087,300,000 | 2,062,900,000 | 1,113,100,000 |
Accumulated impairment losses at the end of the period | -721,000,000 | -721,000,000 | -721,000,000 |
Net goodwill, balance at the end of the period | 1,366,300,000 | 1,341,872,000 | 392,094,000 |
Car Rental | |||
Goodwill | |||
Balance at the beginning of the period | 1,287,500,000 | 419,300,000 | 367,900,000 |
Accumulated impairment losses at the beginning of the period | -46,100,000 | -46,100,000 | -46,100,000 |
Net goodwill, balance at the beginning of the period | 1,241,400,000 | 373,200,000 | 321,800,000 |
Goodwill acquired during the period | 9,400,000 | 884,900,000 | 53,100,000 |
Adjustments to previously recorded purchase price allocation | 15,000,000 | -15,300,000 | -900,000 |
Other changes during the period | -1,600,000 | -1,400,000 | -800,000 |
Total changes in goodwill | 22,800,000 | 868,200,000 | 51,400,000 |
Balance at the end of the period | 1,310,300,000 | 1,287,500,000 | 419,300,000 |
Accumulated impairment losses at the end of the period | -46,100,000 | -46,100,000 | -46,100,000 |
Net goodwill, balance at the end of the period | 1,264,200,000 | 1,241,400,000 | 373,200,000 |
Equipment Rental | |||
Goodwill | |||
Balance at the beginning of the period | 775,400,000 | 693,800,000 | 681,700,000 |
Accumulated impairment losses at the beginning of the period | -674,900,000 | -674,900,000 | -674,900,000 |
Net goodwill, balance at the beginning of the period | 100,500,000 | 18,900,000 | 6,800,000 |
Goodwill acquired during the period | 0 | 82,000,000 | 12,300,000 |
Adjustments to previously recorded purchase price allocation | 1,700,000 | 0 | -100,000 |
Other changes during the period | -100,000 | -400,000 | -100,000 |
Total changes in goodwill | 1,600,000 | 81,600,000 | 12,100,000 |
Balance at the end of the period | 777,000,000 | 775,400,000 | 693,800,000 |
Accumulated impairment losses at the end of the period | -674,900,000 | -674,900,000 | -674,900,000 |
Net goodwill, balance at the end of the period | $102,100,000 | $100,500,000 | $18,900,000 |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets (Details 2) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Amortizable intangible assets: | |||||||
Gross Carrying Amount | $1,148,600,000 | $1,148,600,000 | $1,154,300,000 | $747,300,000 | |||
Accumulated Amortization | -528,300,000 | -528,300,000 | -467,800,000 | -393,300,000 | |||
Net Carrying Value | 620,300,000 | 620,300,000 | 686,500,000 | 354,000,000 | |||
Indefinite-lived intangible assets: | |||||||
Gross Carrying Amount | 3,348,200,000 | 3,348,200,000 | 3,345,600,000 | 2,208,200,000 | |||
Total Other intangible assets | |||||||
Gross Carrying Amount | 4,496,800,000 | 4,496,800,000 | 4,499,900,000 | 2,955,500,000 | |||
Accumulated Amortization | -528,300,000 | -528,300,000 | -467,800,000 | -393,300,000 | |||
Net Carrying Value | 3,968,500,000 | 3,968,500,000 | 4,032,111,000 | 2,562,234,000 | |||
Amortization of other intangible assets | 30,200,000 | 19,800,000 | 60,700,000 | 39,000,000 | 84,096,000 | 70,039,000 | 64,713,000 |
Expected amortization expense for the remainder of 2013 | 60,000,000 | 60,000,000 | 120,500,000 | ||||
Expected Amortization expense in 2013 | 116,400,000 | 116,400,000 | 116,100,000 | ||||
Expected Amortization expense in 2014 | 113,900,000 | 113,900,000 | 113,700,000 | ||||
Expected Amortization expense in 2015 | 64,900,000 | 64,900,000 | 64,800,000 | ||||
Expected Amortization expense in 2016 | 51,800,000 | 51,800,000 | 51,800,000 | ||||
Car Rental | |||||||
Total Other intangible assets | |||||||
Amortization of other intangible assets | 41,700,000 | 32,700,000 | 30,200,000 | ||||
Equipment Rental | |||||||
Total Other intangible assets | |||||||
Amortization of other intangible assets | 40,600,000 | 35,800,000 | 33,400,000 | ||||
Customer-related | |||||||
Amortizable intangible assets: | |||||||
Gross Carrying Amount | 694,600,000 | 694,600,000 | 694,700,000 | 672,600,000 | |||
Accumulated Amortization | -468,500,000 | -468,500,000 | -434,000,000 | -365,500,000 | |||
Net Carrying Value | 226,100,000 | 226,100,000 | 260,700,000 | 307,100,000 | |||
Total Other intangible assets | |||||||
Accumulated Amortization | -468,500,000 | -468,500,000 | -434,000,000 | -365,500,000 | |||
Other amortizable intangible assets | |||||||
Amortizable intangible assets: | |||||||
Gross Carrying Amount | 454,000,000 | 454,000,000 | 459,600,000 | 74,700,000 | |||
Accumulated Amortization | -59,800,000 | -59,800,000 | -33,800,000 | -27,800,000 | |||
Net Carrying Value | 394,200,000 | 394,200,000 | 425,800,000 | 46,900,000 | |||
Total Other intangible assets | |||||||
Accumulated Amortization | -59,800,000 | -59,800,000 | -33,800,000 | -27,800,000 | |||
Trade name | |||||||
Indefinite-lived intangible assets: | |||||||
Gross Carrying Amount | 3,330,000,000 | 3,330,000,000 | 3,330,000,000 | 2,190,000,000 | |||
Other indefinite-lived intangible assets | |||||||
Indefinite-lived intangible assets: | |||||||
Gross Carrying Amount | $18,200,000 | $18,200,000 | $15,600,000 | $18,200,000 |
Business_Combinations_and_Dive2
Business Combinations and Divestitures (Details) (USD $) | 0 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | 0 Months Ended | 11 Months Ended | 12 Months Ended | 6 Months Ended | ||||||
Nov. 19, 2012 | Jun. 30, 2012 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Nov. 19, 2012 | Nov. 19, 2012 | Dec. 31, 2012 | Apr. 15, 2013 | Jun. 30, 2013 | Dec. 12, 2012 | Jun. 30, 2013 | Jun. 30, 2013 | |
Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Series of Individually Immaterial Business Acquisitions | China Auto | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Domestic [Member] | International [Member] | |||||||
location | Series of Individually Immaterial Business Acquisitions | Series of Individually Immaterial Business Acquisitions | ||||||||||||
location | location | |||||||||||||
Acquisition | ||||||||||||||
Per share price | $87.50 | $87.50 | ||||||||||||
Recognized identifiable assets acquired, goodwill and liabilities assumed, net | $2,592,000,000 | $2,592,000,000 | ||||||||||||
Gross cash acquisition payments | 2,551,000,000 | 2,551,000,000 | ||||||||||||
Recognized identifiable assets acquired and liabilities assumed, cash and cash equivalents | 404,000,000 | 404,000,000 | ||||||||||||
Fair value of equity interest in acquiree | 41,000,000 | 41,000,000 | ||||||||||||
Proceeds from issuance of debt | 1,950,000,000 | |||||||||||||
Business Acquisition, Pro Forma Information [Abstract] | ||||||||||||||
Pro Forma Revenue | 2,555,100,000 | 4,812,500,000 | 10,193,300,000 | 9,920,300,000 | 7,904,300,000 | |||||||||
Pro Forma Loss | 123,600,000 | 90,600,000 | 441,800,000 | 235,100,000 | -48,600,000 | |||||||||
Other Acquisitions [Abstract] | ||||||||||||||
Number of Businesses Acquired | 19 | 5 | 5 | |||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ||||||||||||||
Estimate of possible loss | $15,700,000 | $24,100,000 | ||||||||||||
Ownership percentage acquired | 10.00% | |||||||||||||
Ownership percentagne, fully diluted basis | 18.64% |
Taxes_on_Income_Details
Taxes on Income (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2012 | Mar. 31, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Taxes on Income | ||||||||
Effective Income Tax Rate, Continuing Operations | 42.40% | 41.20% | 64.30% | 49.80% | 45.20% | 38.50% | 103.10% | |
Expected effective income tax rate (as percent) | 41.00% | |||||||
Provision for taxes on income | ($95,800) | ($70,700) | ($155,300) | ($94,900) | ($227,073) | ($143,846) | ($33,322) |
Depreciation_of_Revenue_Earnin2
Depreciation of Revenue Earning Equipment and Lease Charges (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Depreciation of Revenue Earning Equipment and Lease Charges | |||||||
Depreciation of revenue earning equipment | $611,800,000 | $539,500,000 | $1,184,800,000 | $1,070,900,000 | $2,165,200,000 | $1,921,800,000 | $1,747,000,000 |
Adjustment of depreciation upon disposal of revenue earning equipment | 11,300,000 | -41,200,000 | 10,000,000 | -80,600,000 | -96,800,000 | -112,200,000 | 42,900,000 |
Rents paid for vehicles leased | 18,000,000 | 21,500,000 | 33,300,000 | 44,600,000 | 79,800,000 | 96,100,000 | 78,200,000 |
Total | $641,100,000 | $519,800,000 | $1,228,100,000 | $1,034,900,000 | $2,148,158,000 | $1,905,739,000 | $1,868,147,000 |
Depreciation_of_Revenue_Earnin3
Depreciation of Revenue Earning Equipment and Lease Charges (Details 2) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Revenue earning equipment | |||||||
Net gains included in adjustment of depreciation upon disposal of revenue earning equipment | ($11,300,000) | $41,200,000 | ($10,000,000) | $80,600,000 | $96,800,000 | $112,200,000 | ($42,900,000) |
Net increase (decrease) in depreciation expenses | -130,600,000 | ||||||
Car Rental | |||||||
Revenue earning equipment | |||||||
Net gains included in adjustment of depreciation upon disposal of revenue earning equipment | -17,500,000 | 38,300,000 | -20,800,000 | 73,200,000 | 83,200,000 | 98,900,000 | -32,900,000 |
Net increase (decrease) in depreciation expenses | 14,800,000 | 15,500,000 | 13,800,000 | -19,100,000 | |||
Equipment Rental | |||||||
Revenue earning equipment | |||||||
Net gains included in adjustment of depreciation upon disposal of revenue earning equipment | 6,200,000 | 2,900,000 | 10,800,000 | 7,400,000 | 13,500,000 | 13,300,000 | -10,000,000 |
Net increase (decrease) in depreciation expenses | $100,000 | $0 | ($500,000) | $4,400,000 | ($3,600,000) |
Debt_Details
Debt (Details) | 1 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mar. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | 30-May-13 | Apr. 30, 2013 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Mar. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Mar. 31, 2012 | Dec. 31, 2012 | Jun. 30, 2013 | Dec. 31, 2011 | Mar. 31, 2012 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | 30-May-13 | Dec. 31, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Jan. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | 30-May-13 | 30-May-13 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | 30-May-13 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jan. 31, 2013 | Jan. 31, 2013 | Jan. 31, 2013 | Jan. 31, 2013 | Apr. 30, 2013 | Apr. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Jun. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Apr. 30, 2013 | Apr. 30, 2013 | |||||||||||||||
USD ($) | USD ($) | USD ($) | USD ($) | Senior Notes 4 Point 25 Percent Due April 2018 [Member] | Senior Notes 4 Point 25 Percent Due April 2018 [Member] | Corporate Debt | Corporate Debt | Corporate Debt | Senior credit facility | Senior credit facility | Senior Term Facility | Senior Term Facility | Senior Term Facility | Senior Term Facility | Senior ABL Facility | Senior ABL Facility | Senior ABL Facility | Senior Notes | Senior Notes | Senior Notes | 7.50% Senior Notes due October 2018 | 7.50% Senior Notes due October 2018 | 7.50% Senior Notes due October 2018 | 7.375% Senior Notes due January 2021 | 7.375% Senior Notes due January 2021 | 7.375% Senior Notes due January 2021 | 6.25% Senior Notes Due October 2022 | 6.25% Senior Notes Due October 2022 | 6.25% Senior Notes Due October 2022 | 6.25% Senior Notes Due October 2022 | 6.75% Senior Notes due April 2019 | 6.75% Senior Notes due April 2019 | 6.75% Senior Notes due April 2019 | 6.75% Senior Notes due April 2019 | 5.875% Senior Notes Due October 2020 | 5.875% Senior Notes Due October 2020 | Promissory Notes | Promissory Notes | Promissory Notes | Other Corporate Debt | Other Corporate Debt | Other Corporate Debt | Fleet debt | Fleet debt | Fleet debt | U.S. Fleet Variable Funding Notes | U.S. Fleet Variable Funding Notes | U.S. Fleet Variable Funding Notes | U.S. Fleet Variable Funding Notes Series 2009-1 | U.S. Fleet Variable Funding Notes Series 2009-1 | U.S. Fleet Variable Funding Notes Series 2009-1 | U.S. Fleet Variable Funding Notes Series 2009-1 | U.S. Fleet Variable Funding Notes Series 2009-1 | U.S. Fleet Variable Funding Notes Series 2009-1 | U.S. Fleet Medium Term Notes | U.S. Fleet Medium Term Notes | U.S. Fleet Medium Term Notes | U.S. Fleet Medium Term Notes Series 2009-2 Notes | U.S. Fleet Medium Term Notes Series 2009-2 Notes | U.S. Fleet Medium Term Notes Series 2009-2 Notes | U.S. Fleet Medium Term Notes Series 2010-1 Notes | U.S. Fleet Medium Term Notes Series 2010-1 Notes | U.S. Fleet Medium Term Notes Series 2010-1 Notes | U.S. Fleet Medium Term Notes Series 2011-1 Notes | U.S. Fleet Medium Term Notes Series 2011-1 Notes | U.S. Fleet Medium Term Notes Series 2011-1 Notes | US Fleet Medium Term Notes 2013 Series 1 | US Fleet Medium Term Notes 2013 Series 1 | US Fleet Medium Term Notes 2013 Series 1 | RCFC US Fleet Variable Funding Notes | RCFC US Fleet Variable Funding Notes | RCFC Series 2010-3 Notes | RCFC Series 2010-3 Notes | RCFC Series 2010-3 Notes | RCFC Series 2011-1 Notes | RCFC Series 2011-1 Notes | RCFC Series 2011-1 Notes | RCFC Series 2011-2 Notes | RCFC Series 2011-2 Notes | RCFC Series 2011-2 Notes | RCFC U.S. ABS Program | RCFC U.S. ABS Program | Donlen GN II Variable Funding Note Facility | Donlen GN II Variable Funding Note Facility | Donlen GN II Variable Funding Note Facility | Other Fleet Debt | Other Fleet Debt | Other Fleet Debt | U.S. Fleet Financing Facility | U.S. Fleet Financing Facility | U.S. Fleet Financing Facility | European Revolving Credit Facility [Member] | European Revolving Credit Facility [Member] | European Revolving Credit Facility [Member] | European Revolving Credit Facility [Member] | European Revolving Credit Facility [Member] | European Fleet Notes | European Fleet Notes | European Fleet Notes | European Fleet Notes | European Securitization | European Securitization | European Securitization | Canadian Securitization | Canadian Securitization | Canadian Securitization | Dollar Thrifty Sponsored Canadian Securitization [Member] | Dollar Thrifty Sponsored Canadian Securitization [Member] | Dollar Thrifty Sponsored Canadian Securitization [Member] | Australian Securitization | Australian Securitization | Australian Securitization | Brazilian Fleet Financing Facility | Brazilian Fleet Financing Facility | Brazilian Fleet Financing Facility | Capitalized Leases | Capitalized Leases | Capitalized Leases | Class-A, Three Year | Class-B, Three Year | Class-A, Five Year | Class-B, Five Year | Tranche B Term Loans [Member] | Tranche B-2 Term Loans [Member] | Maximum | Minimum | Minimum | Letters of credit | Letters of credit | Letters of credit | Letters of credit | Letters of credit | Letters of credit | LIBOR | LIBOR | |||||||||||||||||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | EUR (€) | USD ($) | USD ($) | USD ($) | GBP (£) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | 6.75% Senior Notes due April 2019 | Senior ABL Facility | Senior ABL Facility | USD ($) | USD ($) | Senior credit facility | Senior Term Facility | Senior ABL Facility | Senior ABL Facility | Minimum | ||||||||||||||||||||||||
USD ($) | USD ($) | USD ($) | USD ($) | Tranche B-2 Term Loans [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Average Interest Rate (as a percent) | 3.26% | 3.75% | 2.89% | 2.47% | 6.58% | 6.74% | [1] | 6.96% | 6.96% | 3.51% | 4.40% | 1.04% | 1.11% | [2] | 5.37% | 5.11% | [2] | 3.77% | 3.77% | [2] | 2.86% | 2.86% | [2] | 1.68% | 1.03% | 2.81% | 3.21% | 1.00% | 1.15% | 2.95% | 3.27% | 2.67% | 2.86% | 8.50% | 8.50% | 2.50% | 2.48% | [2] | 2.14% | 2.16% | 2.13% | 2.13% | 4.17% | 4.61% | [2] | 13.89% | 13.07% | 4.08% | 4.40% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
8.875% Senior Notes due January 2014 | $1,419,000,000 | $0 | $250,000,000 | $0 | $2,114,800,000 | $2,125,500,000 | $1,389,500,000 | $1,005,800,000 | $195,000,000 | $0 | $3,900,000,000 | $3,650,000,000 | [1] | $2,638,600,000 | [1] | $700,000,000 | $700,000,000 | $500,000,000 | $500,000,000 | $500,000,000 | $500,000,000 | $500,000,000 | $0 | $1,250,000,000 | $1,250,000,000 | $1,000,000,000 | $700,000,000 | $700,000,000 | $48,700,000 | $48,700,000 | $224,700,000 | $58,500,000 | $88,700,000 | $49,600,000 | $2,590,000,000 | $2,350,000,000 | $1,345,000,000 | $2,590,000,000 | $2,350,000,000 | [2] | $1,000,000,000 | [2] | $3,105,300,000 | $2,443,700,000 | $2,732,100,000 | $807,500,000 | $1,095,900,000 | [2] | $1,384,300,000 | [2] | $749,800,000 | $749,800,000 | [2] | $749,800,000 | [2] | $598,000,000 | $598,000,000 | [2] | $598,000,000 | [2] | $950,000,000 | $0 | $540,000,000 | $519,000,000 | $0 | $500,000,000 | $500,000,000 | $0 | $400,000,000 | $400,000,000 | $0 | $1,440,000,000 | $1,419,000,000 | $943,800,000 | $899,300,000 | $811,200,000 | $2,184,100,000 | $1,791,300,000 | $171,000,000 | $166,000,000 | $136,000,000 | $357,900,000 | $185,300,000 | $200,600,000 | $520,500,000 | $529,400,000 | $517,700,000 | $363,000,000 | $242,200,000 | [2] | $256,200,000 | [2] | $124,200,000 | $100,500,000 | $68,300,000 | $76,400,000 | $55,300,000 | $0 | $119,700,000 | $148,900,000 | [2] | $169,300,000 | [2] | $13,000,000 | $14,000,000 | $23,100,000 | $429,600,000 | $337,600,000 | $363,700,000 | |||||||||||||||||||||||||||||||||||||||||||
Unamortized Net (Discount) Premium | 3,200,000 | 3,300,000 | -6,900,000 | 8,800,000 | 12,100,000 | -10,900,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | 17,394,200,000 | 15,014,474,000 | 10,907,849,000 | 7,131,000,000 | 6,111,200,000 | 4,295,500,000 | 10,263,200,000 | 8,903,300,000 | 6,612,300,000 | 1,791,300,000 | 1,724,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate (as a percent) | 4.25% | 7.50% | 7.50% | 7.38% | 7.38% | 6.25% | 6.25% | 6.75% | 6.75% | 5.88% | 8.50% | 1.12% | 1.86% | 1.83% | 2.48% | 100.00% | 75.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Aggregate amounts of maturities of debt for each of the twelve month periods | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2013 | 7,028,280,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2,124,400,000 | 1,100,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2015 | 1,140,000,000 | 1,900,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2016 | 366,500,000 | 300,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2017 | 2,819,100,000 | 200,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
After 2017 | 3,903,900,000 | 5,800,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Letters of Credit | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding standby letters of credit | 638,000,000 | 626,600,000 | 664,400,000 | 681,400,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Face amount | 950,000,000 | 282,750,000 | 42,250,000 | 543,750,000 | 81,250,000 | 1,372,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted average interest rate of short term borrowings (as percent) | 2.10% | 1.80% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Short-term Borrowings | 6,741,100,000 | 5,718,700,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Maximum maturity period of outstanding borrowings to be reflected as short-term borrowings (in months) | 3 months | 3 months | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Period over which cash generated from operations, together with amounts available under various liquidity facilities will be adequate to permit entity to meet debt maturities (in months) | 12 months | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2012 Events | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Additional aggregate principal issued | 500,000,000 | 500,000,000 | 250,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Increase in the credit agreement's borrowing capacity | 38,300,000 | 750,000,000 | 2,738,800,000 | 250,000,000 | 250,000,000 | 130,100,000 | 100,000,000 | 25,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Registration Rights | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Special interest (as a percent) | 0.25% | 0.25% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Period of initial default per registration payment arrangement | 90 days | 90 days | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Increase in special interest during each subsequent 90 day period (as a percent) | 0.25% | 0.25% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Period of subsequent default per registration payment arrangement | 90 days | 90 days | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Increase in Special Interest Rate Per Annum on Default Maximum | 0.50% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Covenant Compliance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed charge coverage ratio | 1 | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Borrowing Capacity and Availability | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Remaining Capacity | 1,125,200,000 | 2,267,200,000 | 357,300,000 | 1,183,700,000 | 357,300,000 | 1,183,700,000 | 767,900,000 | 1,083,500,000 | 148,800,000 | 88,800,000 | 60,000,000 | 81,000,000 | 60,000,000 | 105,000,000 | 19,000,000 | 24,000,000 | 58,500,000 | 105,900,000 | 157,400,000 | 287,200,000 | 85,000,000 | 100,500,000 | 66,900,000 | 95,500,000 | 112,300,000 | 110,500,000 | 85,100,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Availability Under Borrowing Base Limitation | 357,300,000 | 1,181,400,000 | 357,300,000 | 1,146,000,000 | 357,300,000 | 1,146,000,000 | 0 | 35,400,000 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 7,900,000 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 27,500,000 | 8,000,000 | 100,000 | 1,006,500,000 | 1,010,400,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets of variable interest entities | 579,300,000 | 440,800,000 | 456,300,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities of variable interest entities | 578,800,000 | 440,300,000 | 455,800,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Treasury Stock, Value, Acquired, Par Value Method | ($467,200,000) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares of common stock acquired | 23,200,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of quarters most recentely ended for which the Hertz credit group would be subject to a specified fixed charge coverage ratio | 1 year | 1 year | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 275.00% | 225.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Alternative Base Rate Margin | 175.00% | 125.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[1] | References to our "Senior Notes" include the series of Hertz's unsecured senior notes set forth in the table below. As of December 31, 2012 and December 31, 2011, the outstanding principal amount for each such series of the Senior Notes is also specified below. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[2] | Maturity reference is to the "expected final maturity date" as opposed to the subsequent "legal maturity date." The expected final maturity date is the date by which Hertz and investors in the relevant indebtedness expect the relevant indebtedness to be repaid. The legal final maturity date is the date on which the relevant indebtedness is legally due and payable. |
Employee_Retirement_Benefits_D
Employee Retirement Benefits (Details) (USD $) | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Jun. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | plan | Pension Benefits | Pension Benefits | Pension Benefits | Pension Benefits | Pension Benefits | Pension Benefits | Pension Benefits - U.S. | Pension Benefits - U.S. | Pension Benefits - U.S. | Pension Benefits - U.S. | Pension Benefits - U.S. | Pension Benefits - U.S. | Pension Benefits - U.S. | Pension Benefits - Non-U.S. | Pension Benefits - Non-U.S. | Pension Benefits - Non-U.S. | Pension Benefits - Non-U.S. | Pension Benefits - Non-U.S. | Pension Benefits - Non-U.S. | Pension Benefits - Non-U.S. | Postretirement Benefits (U.S.) | Postretirement Benefits (U.S.) | Postretirement Benefits (U.S.) | Postretirement Benefits (U.S.) | Postretirement Benefits (U.S.) | Postretirement Benefits (U.S.) | Postretirement Benefits (U.S.) | Key officer postretirement car benefit plan | Key officer postretirement car benefit plan | Key officer postretirement car benefit plan | |
Minimum | Minimum | |||||||||||||||||||||||||||||||
Components of Net Periodic Benefit Cost | ||||||||||||||||||||||||||||||||
Service cost | $7.10 | $7 | $14.40 | $13.30 | $24.80 | $26.20 | $24 | $0.70 | $0.30 | $1.30 | $0.60 | $1.90 | $4 | $5.20 | $0 | $0.10 | $0.10 | $0.20 | $0.20 | $0.20 | $0.30 | |||||||||||
Interest cost | 6.9 | 7.4 | 13.6 | 13.9 | 28.2 | 27.5 | 26.1 | 2.3 | 2.3 | 4.6 | 4.6 | 9.7 | 11 | 9.7 | 0.1 | 0.2 | 0.3 | 0.4 | 0.8 | 0.9 | 0.9 | |||||||||||
Expected return on plan assets | -7.5 | -8 | -15 | -15.3 | -31.5 | -30.5 | -26.6 | -3.2 | -3 | -6.3 | -6 | -12.1 | -12.8 | -10 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||
Net amortization | 4 | 3.2 | 8.3 | 6 | 11.8 | 7.2 | 4.6 | 0.1 | -0.1 | 0.2 | -0.1 | -0.1 | -0.7 | -1 | 0.1 | 0 | 0.1 | 0 | 0 | 0.1 | 0 | |||||||||||
Net pension and postretirement expense | 10.5 | 9.6 | 21.3 | 17.9 | 35.3 | 32.6 | 28.5 | -0.1 | -0.5 | -0.2 | -0.9 | -0.6 | -11.3 | 3.7 | 0.2 | 0.3 | 0.5 | 0.6 | 1 | 1.2 | 1.2 | |||||||||||
Other disclosures | ||||||||||||||||||||||||||||||||
Contributions | 6.9 | 38.4 | 11.8 | 10.6 | 32.2 | 58.9 | 46.3 | 67.8 | 4.7 | 16 | 1.4 | 1.3 | ||||||||||||||||||||
Service period | 20 years | 20 years | ||||||||||||||||||||||||||||||
Retirement age | 58 years | 58 years | ||||||||||||||||||||||||||||||
Life period of participant | 15 years | |||||||||||||||||||||||||||||||
Eligible age for car benefit | 80 years | |||||||||||||||||||||||||||||||
Number of multiemployer plans with significant underfunded liabilities | 1 | |||||||||||||||||||||||||||||||
Multiemployer Plans, Withdrawal Obligation | $23.20 |
StockBased_Compensation_Detail
Stock-Based Compensation (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 1 Months Ended | 6 Months Ended | 1 Months Ended | 1 Months Ended | 6 Months Ended | 1 Months Ended | 6 Months Ended | ||||||||||||||
In Millions, except Share data, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2010 | 31-May-13 | Nov. 30, 2012 | Mar. 31, 2012 | 30-May-13 | Jun. 30, 2013 | Jun. 30, 2013 | Feb. 28, 2013 | Mar. 31, 2012 | Feb. 28, 2013 | Mar. 31, 2012 | Mar. 31, 2012 | Mar. 31, 2012 | 31-May-13 | Jun. 30, 2013 | Jun. 30, 2013 | 31-May-13 | Jun. 30, 2013 | Jun. 30, 2013 |
RSUs | RSUs | RSUs | RSUs | Omnibus Plan [Member] | Omnibus Plan [Member] | Omnibus Plan [Member] | Omnibus Plan [Member] | Omnibus Plan [Member] | Omnibus Plan [Member] | Omnibus Plan [Member] | Omnibus Plan [Member] | Three Year Vesting Period [Member] | Three Year Vesting Period [Member] | Three Year Vesting Period [Member] | Two Year Vesting Period [Member] | Two Year Vesting Period [Member] | Two Year Vesting Period [Member] | |||||||
Minimum | Maximum | RSUs | RSUs | Performance Stock Units [Member] | Performance Stock Units [Member] | Price Vesting Units P V U Subject to Performance Condition [Member] | Price Vesting Units P V U Subject to Performance Condition [Member] | RSUs | RSUs | Omnibus Plan [Member] | RSUs | RSUs | Omnibus Plan [Member] | |||||||||||
Minimum | Maximum | Price Vesting Units P V U Subject to Performance Condition [Member] | Price Vesting Units P V U Subject to Performance Condition [Member] | |||||||||||||||||||||
Stock-Based Compensation | ||||||||||||||||||||||||
Awards granted (in shares) | 166,576 | 24,713 | 543,880 | 5,247 | 1,707,458 | 1,136,724 | 162,584 | 490,632 | 3,992 | 83,567 | ||||||||||||||
Award vesting period | 3 years | 2 years | ||||||||||||||||||||||
Weighted average grant date fair value | $13.15 | $23.80 | $19.95 | |||||||||||||||||||||
Variation in number of units that will ultimately be granted as percentage of the original grant (as a percent) | 0.00% | 100.00% | 0.00% | 150.00% | ||||||||||||||||||||
Compensation expense | $11.70 | $7.50 | $19.70 | $15 | $36.60 | |||||||||||||||||||
Income Tax Benefit | -4.5 | -2.9 | -7.6 | -5.8 | -14.2 | |||||||||||||||||||
Total | 7.2 | 4.6 | 12.1 | 9.2 | 22.4 | |||||||||||||||||||
Unrecognized compensation cost related to non-vested stock options, RSUs and PSUs granted | $55.40 | $55.40 | $38 | |||||||||||||||||||||
Period for recognition of total unrecognized compensation cost | 1 year 8 months 13 days | 1 year 4 months 26 days |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | ||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||||||||||||||
Revenues | $2,714,600,000 | $2,318,600,000 | $2,516,200,000 | $2,225,100,000 | $1,960,900,000 | $2,013,800,000 | $2,432,300,000 | $2,072,300,000 | $1,780,000,000 | $5,151,200,000 | $4,186,100,000 | $9,020,807,000 | $8,298,380,000 | $7,562,534,000 | |||
Income (loss) before income taxes | 225,700,000 | -26,900,000 | 382,100,000 | 171,700,000 | -24,000,000 | 105,400,000 | 308,200,000 | 107,000,000 | -146,700,000 | 311,700,000 | 147,600,000 | 502,852,000 | 373,895,000 | 32,322,000 | |||
Increase in assets | 2,640,800,000 | ||||||||||||||||
Total reportable segments | |||||||||||||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||||||||||||||
Revenues | 2,713,800,000 | 2,224,600,000 | 5,149,700,000 | 4,185,000,000 | |||||||||||||
Income (loss) before income taxes | 437,100,000 | 319,900,000 | 691,300,000 | 437,400,000 | 1,247,100,000 | 1,011,800,000 | 719,900,000 | ||||||||||
Car Rental | |||||||||||||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||||||||||||||
Revenues | 2,329,500,000 | 1,889,600,000 | 4,414,300,000 | 3,547,900,000 | 7,633,000,000 | 7,083,500,000 | 6,486,200,000 | ||||||||||
Income (loss) before income taxes | 363,000,000 | 277,400,000 | 571,400,000 | 369,000,000 | 1,020,100,000 | 850,200,000 | [1] | 641,900,000 | [1] | ||||||||
Equipment Rental | |||||||||||||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||||||||||||||
Revenues | 384,300,000 | 335,000,000 | 735,400,000 | 637,100,000 | 1,385,400,000 | 1,209,500,000 | 1,070,100,000 | ||||||||||
Income (loss) before income taxes | 74,100,000 | 42,500,000 | 119,900,000 | 68,400,000 | 227,000,000 | 161,600,000 | [1] | 78,000,000 | [1] | ||||||||
Other | |||||||||||||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||||||||||||||
Revenues | 800,000 | 500,000 | 1,500,000 | 1,100,000 | |||||||||||||
Other reconciling items | |||||||||||||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||||||||||||||
Revenues | 2,400,000 | 5,400,000 | 6,200,000 | ||||||||||||||
Income (loss) before income taxes | -116,200,000 | -79,800,000 | -219,500,000 | -161,700,000 | -320,500,000 | [2] | -306,200,000 | [2] | -347,900,000 | [2] | |||||||
Purchase accounting | |||||||||||||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||||||||||||||
Income (loss) before income taxes | -33,100,000 | -29,000,000 | -66,800,000 | -53,000,000 | -109,600,000 | -87,600,000 | -90,300,000 | ||||||||||
Non Cash debt charges | |||||||||||||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||||||||||||||
Income (loss) before income taxes | -12,100,000 | -13,900,000 | -22,100,000 | -32,600,000 | -56,400,000 | -105,900,000 | -160,600,000 | ||||||||||
Restructuring charges | |||||||||||||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||||||||||||||
Income (loss) before income taxes | -17,600,000 | -16,100,000 | -21,300,000 | -22,800,000 | -38,000,000 | -56,400,000 | -54,700,000 | ||||||||||
Restructuring related charges | |||||||||||||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||||||||||||||
Income (loss) before income taxes | -8,600,000 | -5,000,000 | -12,800,000 | -8,300,000 | -11,100,000 | [3] | -9,800,000 | [3] | -13,200,000 | [3] | |||||||
Management transition costs | |||||||||||||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||||||||||||||
Income (loss) before income taxes | -9,200,000 | 0 | -20,000,000 | 0 | 0 | -4,000,000 | 0 | ||||||||||
Derivative gains (losses) | |||||||||||||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||||||||||||||
Income (loss) before income taxes | -100,000 | 0 | -11,700,000 | -11,400,000 | -900,000 | [4] | 100,000 | [4] | -3,200,000 | [4] | |||||||
Acquisition related costs | |||||||||||||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||||||||||||||
Income (loss) before income taxes | -9,100,000 | -4,500,000 | -5,400,000 | 0 | -163,700,000 | -18,800,000 | -17,700,000 | ||||||||||
Acquisition Related Costs, Other [Member] | |||||||||||||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||||||||||||||
Income (loss) before income taxes | ($5,400,000) | $0 | |||||||||||||||
[1] | The following table reconciles adjusted pre-tax income to income (loss) before income taxes for the years ended December 31, 2012, 2011 and 2010 (in millions of dollars): | ||||||||||||||||
[2] | Represents general corporate expenses, certain interest expense (including net interest on corporate debt), as well as other business activities. | ||||||||||||||||
[3] | Represents incremental costs incurred directly supporting our business transformation initiatives. Such costs include transition costs incurred in connection with our business process outsourcing arrangements and incremental costs incurred to facilitate business process re-engineering initiatives that involve significant organization redesign and extensive operational process changes. | ||||||||||||||||
[4] | Represents the mark-to-market adjustment on our interest rate cap. |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Loss (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2013 | Jun. 30, 2012 | Mar. 31, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Balance at the beginning of the period | ($28,414,000) | ($26,892,000) | ($28,414,000) | ($28,414,000) | ||||
Other comprehensive income (loss) before reclassification | -53,000,000 | -13,300,000 | ||||||
Other, (net of tax of 2013: $0 and 2012: $0) | 100,000 | 200,000 | 100,000 | 100,000 | 657,000 | -984,000 | -19,000 | |
Amounts reclassified from accumulated other comprehensive loss | -4,000,000 | -2,000,000 | -6,600,000 | -3,700,000 | ||||
Other comprehensive income | -22,200,000 | -42,000,000 | -9,600,000 | -46,400,000 | -9,600,000 | 1,522,000 | -66,237,000 | 41,154,000 |
Balance at the end of the period | -73,300,000 | -38,000,000 | -73,300,000 | -38,000,000 | -26,892,000 | -28,414,000 | ||
Accumulated Other Comprehensive Income (Loss), by Component [Abstract] | ||||||||
Tax provision | 95,800,000 | 70,700,000 | 155,300,000 | 94,900,000 | 227,073,000 | 143,846,000 | 33,322,000 | |
Translation adjustment changes | -26,700,000 | -46,100,000 | -54,000,000 | -16,500,000 | 11,358,000 | -23,545,000 | -17,213,000 | |
Net of tax | -4,000,000 | -2,000,000 | -6,600,000 | -3,700,000 | ||||
Pension and Other Post-Employment Benefits | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Balance at the beginning of the period | -99,600,000 | -109,800,000 | -99,600,000 | -99,600,000 | ||||
Other comprehensive income (loss) before reclassification | 300,000 | 0 | ||||||
Amounts reclassified from accumulated other comprehensive loss | -2,500,000 | -2,000,000 | -5,100,000 | -3,700,000 | ||||
Other comprehensive income | 5,400,000 | 3,700,000 | ||||||
Balance at the end of the period | -104,400,000 | -95,900,000 | -104,400,000 | -95,900,000 | ||||
Accumulated Other Comprehensive Income (Loss), by Component [Abstract] | ||||||||
Tax provision | 1,500,000 | 1,200,000 | 3,200,000 | 2,300,000 | ||||
Translation adjustment changes | 1,500,000 | 0 | 1,500,000 | 0 | ||||
Net of tax | -2,500,000 | -2,000,000 | -5,100,000 | -3,700,000 | ||||
Pension and Other Post-Employment Benefits | Selling, General and Administrative Expenses | ||||||||
Accumulated Other Comprehensive Income (Loss), by Component [Abstract] | ||||||||
Amortization of actuarial losses | 4,000,000 | 3,200,000 | 8,300,000 | 6,000,000 | ||||
Foreign Currency Items | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Balance at the beginning of the period | 91,300,000 | 102,700,000 | 91,300,000 | 91,300,000 | ||||
Other comprehensive income (loss) before reclassification | -55,500,000 | -16,500,000 | ||||||
Amounts reclassified from accumulated other comprehensive loss | -1,500,000 | 0 | ||||||
Other comprehensive income | -16,500,000 | |||||||
Balance at the end of the period | 48,700,000 | 74,800,000 | 48,700,000 | 74,800,000 | ||||
Accumulated Other Comprehensive Income (Loss), by Component [Abstract] | ||||||||
Net of tax | -1,500,000 | 0 | ||||||
Unrealized Losses on Terminated Net Investment Hedges | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Balance at the beginning of the period | -19,400,000 | -19,400,000 | -19,400,000 | -19,400,000 | ||||
Other comprehensive income (loss) before reclassification | 0 | 0 | ||||||
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | ||||||
Other comprehensive income | 0 | 0 | ||||||
Balance at the end of the period | -19,400,000 | -19,400,000 | -19,400,000 | -19,400,000 | ||||
Accumulated Other Comprehensive Income (Loss), by Component [Abstract] | ||||||||
Net of tax | 0 | 0 | ||||||
Unrealized Gains on Available for Sale Securities | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Balance at the beginning of the period | 300,000 | 0 | 300,000 | 300,000 | ||||
Other comprehensive income (loss) before reclassification | 2,100,000 | 3,100,000 | ||||||
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | ||||||
Other comprehensive income | 2,100,000 | 3,100,000 | ||||||
Balance at the end of the period | 2,100,000 | 3,400,000 | 2,100,000 | 3,400,000 | ||||
Accumulated Other Comprehensive Income (Loss), by Component [Abstract] | ||||||||
Net of tax | 0 | 0 | ||||||
Other | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Balance at the beginning of the period | -1,000,000 | -400,000 | -1,000,000 | -1,000,000 | ||||
Other comprehensive income (loss) before reclassification | 100,000 | |||||||
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | ||||||
Other comprehensive income | 100,000 | 100,000 | ||||||
Balance at the end of the period | -300,000 | -900,000 | -300,000 | -900,000 | ||||
Accumulated Other Comprehensive Income (Loss), by Component [Abstract] | ||||||||
Net of tax | $0 | $0 |
Restructuring_Details
Restructuring (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 60 Months Ended | 72 Months Ended | 78 Months Ended | |||||||
In Millions, unless otherwise specified | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2008 | Dec. 31, 2011 | Dec. 31, 2012 | Jun. 30, 2013 |
employee | employee | employee | employee | employee | |||||||||
Restructuring details | |||||||||||||
Charges incurred | $21.30 | $38 | $56.40 | ||||||||||
Number of employees impacted | 50 | 650 | 515 | 9,610 | 8,960 | ||||||||
Restructuring charges incurred to date | 568.4 | 589.7 | |||||||||||
Restructuring charges | 17.6 | 16.1 | 21.3 | 22.8 | 38 | 56.4 | 54.7 | ||||||
Restructuring reserve | |||||||||||||
Balance at beginning of period | 21 | 21 | 21.6 | 21.6 | 17.5 | ||||||||
Charges incurred | 17.6 | 16.1 | 21.3 | 22.8 | 38 | 56.4 | 54.7 | ||||||
Cash payments | -20 | -26.8 | -18.4 | ||||||||||
Other | -3.5 | -11.8 | -33.9 | ||||||||||
Balance at end of period | 18.8 | 21 | 18.8 | 21 | 21.6 | 17.5 | 21.6 | 21 | 18.8 | ||||
Car Rental | |||||||||||||
Restructuring details | |||||||||||||
Number of off-airport locations closed | 250 | ||||||||||||
Restructuring charges incurred to date | 282.7 | 301.6 | |||||||||||
Restructuring charges | 15.8 | 11.8 | 18.9 | 15.3 | 26.4 | 16.6 | 18.1 | ||||||
Restructuring reserve | |||||||||||||
Charges incurred | 15.8 | 11.8 | 18.9 | 15.3 | 26.4 | 16.6 | 18.1 | ||||||
Equipment Rental | |||||||||||||
Restructuring details | |||||||||||||
Number of branches in U.S. equipment rental segment closed | 22 | ||||||||||||
Restructuring charges incurred to date | 230.3 | 231.6 | |||||||||||
Restructuring charges | 0.8 | 2.6 | 1.3 | 5.8 | 8.8 | 40.5 | 34.7 | ||||||
Restructuring reserve | |||||||||||||
Charges incurred | 0.8 | 2.6 | 1.3 | 5.8 | 8.8 | 40.5 | 34.7 | ||||||
Other | |||||||||||||
Restructuring details | |||||||||||||
Restructuring charges incurred to date | 55.4 | 56.5 | |||||||||||
Other reconciling items | |||||||||||||
Restructuring details | |||||||||||||
Restructuring charges | 1 | 1.7 | 1.1 | 1.7 | 2.8 | -0.7 | 1.9 | ||||||
Restructuring reserve | |||||||||||||
Charges incurred | 1 | 1.7 | 1.1 | 1.7 | 2.8 | -0.7 | 1.9 | ||||||
Direct Operating Expense [Member] | |||||||||||||
Restructuring details | |||||||||||||
Restructuring charges | 22.6 | 46.6 | 43.5 | ||||||||||
Restructuring reserve | |||||||||||||
Charges incurred | 22.6 | 46.6 | 43.5 | ||||||||||
Selling, general and administrative | |||||||||||||
Restructuring details | |||||||||||||
Restructuring charges | 15.4 | 9.8 | 11.2 | ||||||||||
Restructuring reserve | |||||||||||||
Charges incurred | 15.4 | 9.8 | 11.2 | ||||||||||
Termination benefits | |||||||||||||
Restructuring details | |||||||||||||
Charges incurred | 17.4 | 26.2 | 14.4 | ||||||||||
Restructuring charges | 15.2 | 13.5 | 17.4 | 16.2 | 26.2 | 14.4 | 12.2 | ||||||
Expected duration for payment of restructuring obligations (in months) | 12 years | 12 years | |||||||||||
Restructuring reserve | |||||||||||||
Balance at beginning of period | 12.4 | 12.4 | 9.1 | 9.1 | 6.3 | ||||||||
Charges incurred | 15.2 | 13.5 | 17.4 | 16.2 | 26.2 | 14.4 | 12.2 | ||||||
Cash payments | -17.4 | -22.6 | -15.5 | ||||||||||
Other | -0.3 | -0.3 | 3.9 | ||||||||||
Balance at end of period | 12.1 | 12.4 | 12.1 | 12.4 | 9.1 | 6.3 | 9.1 | 12.4 | 12.1 | ||||
Pension and Post Retirement expense | |||||||||||||
Restructuring details | |||||||||||||
Charges incurred | 0 | 1 | 0.4 | ||||||||||
Restructuring charges | 1 | 0.4 | 0.4 | ||||||||||
Restructuring reserve | |||||||||||||
Balance at beginning of period | 0.2 | 0.2 | 0.2 | 0.2 | 0.2 | ||||||||
Charges incurred | 1 | 0.4 | 0.4 | ||||||||||
Cash payments | -0.2 | 0 | 0 | ||||||||||
Other | 0 | -1 | -0.4 | ||||||||||
Balance at end of period | 0 | 0.2 | 0 | 0.2 | 0.2 | 0.2 | 0.2 | 0.2 | 0 | ||||
Consultant costs | |||||||||||||
Restructuring details | |||||||||||||
Charges incurred | 0.8 | 1.2 | 1.3 | ||||||||||
Restructuring charges | 0.5 | 0.4 | 0.8 | 0.6 | 1.2 | 1.3 | 1.1 | ||||||
Restructuring reserve | |||||||||||||
Balance at beginning of period | 0.3 | 0.3 | 0.6 | 0.6 | 0.1 | ||||||||
Charges incurred | 0.5 | 0.4 | 0.8 | 0.6 | 1.2 | 1.3 | 1.1 | ||||||
Cash payments | -0.9 | -0.9 | -0.6 | ||||||||||
Other | 0 | -0.6 | -0.2 | ||||||||||
Balance at end of period | 0.2 | 0.3 | 0.2 | 0.3 | 0.6 | 0.1 | 0.6 | 0.3 | 0.2 | ||||
Facility closure and lease obligation costs | |||||||||||||
Restructuring details | |||||||||||||
Restructuring charges | 1.9 | 2.2 | 3.1 | 6 | 8.9 | 16.5 | 14.3 | ||||||
Restructuring reserve | |||||||||||||
Charges incurred | 1.9 | 2.2 | 3.1 | 6 | 8.9 | 16.5 | 14.3 | ||||||
Facility closures | |||||||||||||
Restructuring reserve | |||||||||||||
Other | 3.2 | -10.3 | -13.9 | ||||||||||
Other | |||||||||||||
Restructuring details | |||||||||||||
Charges incurred | 3.1 | 9.6 | 40.3 | ||||||||||
Restructuring charges | 0.3 | 0 | 1.3 | ||||||||||
Restructuring reserve | |||||||||||||
Balance at beginning of period | 8.1 | 8.1 | 11.7 | 11.7 | 10.9 | ||||||||
Charges incurred | 0.3 | 0 | 1.3 | ||||||||||
Cash payments | -1.5 | -3.3 | -2.3 | ||||||||||
Other | -3.2 | -9.9 | -37.2 | ||||||||||
Balance at end of period | 6.5 | 8.1 | 6.5 | 8.1 | 11.7 | 10.9 | 11.7 | 8.1 | 6.5 | ||||
Foreign currency translation | |||||||||||||
Restructuring reserve | |||||||||||||
Other | 0.3 | ||||||||||||
Selling, General and Administrative Expense [Member] | |||||||||||||
Restructuring details | |||||||||||||
Restructuring charges | 10.8 | 9.1 | 13 | 10.9 | |||||||||
Restructuring reserve | |||||||||||||
Charges incurred | 10.8 | 9.1 | 13 | 10.9 | |||||||||
Direct Operating Expense [Member] | |||||||||||||
Restructuring details | |||||||||||||
Restructuring charges | 6.8 | 7 | 8.3 | 11.9 | |||||||||
Restructuring reserve | |||||||||||||
Charges incurred | $6.80 | $7 | $8.30 | $11.90 |
Financial_Instruments_Details
Financial Instruments (Details) (USD $) | 6 Months Ended | 12 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | 3 Months Ended | 6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | |
Gasoline swaps | Gasoline swaps | Interest rate caps | Interest rate caps | Foreign exchange forward contracts | Foreign exchange forward contracts | Foreign exchange options | Foreign exchange options | Level 2 | Level 2 | Level 2 | Level 3 | Level 3 | Level 3 | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Minimum | Maximum | |||||
Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Total | Total | Total | Total | Total | Total | Total | Total | Total | Total | Total | Total | Total | Total | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | |||||||||||||||||||||
Gasoline swaps | Gasoline swaps | Gasoline swaps | Gasoline swaps | Gasoline swaps | Interest rate caps | Interest rate caps | Interest rate caps | Interest rate caps | Interest rate caps | Interest rate caps | Foreign exchange forward contracts | Foreign exchange forward contracts | Foreign exchange forward contracts | Foreign exchange forward contracts | Foreign exchange forward contracts | Foreign exchange forward contracts | Foreign exchange options | Foreign exchange options | Foreign exchange options | Foreign exchange options | Foreign exchange options | Foreign exchange options | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | ||||||||||||||||||||||||||||||||
Gasoline swaps | Gasoline swaps | Interest rate caps | Interest rate caps | Interest rate caps | Foreign exchange forward contracts | Foreign exchange forward contracts | Foreign exchange forward contracts | Foreign exchange options | Foreign exchange options | Foreign exchange options | Gasoline swaps | Gasoline swaps | Interest rate caps | Interest rate caps | Interest rate caps | Foreign exchange forward contracts | Foreign exchange forward contracts | Foreign exchange forward contracts | Foreign exchange options | Foreign exchange options | Foreign exchange options | Gasoline swaps | Gasoline swaps | Interest rate caps | Interest rate caps | Interest rate caps | Foreign exchange forward contracts | Foreign exchange forward contracts | Foreign exchange forward contracts | Foreign exchange options | Foreign exchange options | Foreign exchange options | Gasoline swaps | Gasoline swaps | Interest rate caps | Interest rate caps | Interest rate caps | Foreign exchange forward contracts | Foreign exchange forward contracts | Foreign exchange forward contracts | Foreign exchange options | Foreign exchange options | Foreign exchange options | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Instruments | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value | $0 | $0 | $0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale marketable equity securities included in prepaid expenses and other assets at fair value | 132,000,000 | 132,000,000 | 33,200,000 | 33,200,000 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized holding gains (losses) on securities, (net of tax of 2012: $0; 2011: $125 and 2010: $0) | -318,000 | 226,000 | 31,000 | 2,000,000 | 2,000,000 | 0 | 5,100,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Derivative Instruments | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset Derivatives | 5,500,000 | 4,500,000 | 600,000 | 900,000 | 4,800,000 | 3,400,000 | 100,000 | 200,000 | 5,500,000 | 5,500,000 | 4,500,000 | 5,000,000 | 0 | 0 | 0 | 600,000 | 600,000 | 900,000 | 500,000 | 4,800,000 | 4,800,000 | 3,400,000 | 4,400,000 | 100,000 | 100,000 | 200,000 | 100,000 | 5,500,000 | 4,500,000 | 38,200,000 | 600,000 | 900,000 | 500,000 | 4,800,000 | 3,400,000 | 4,400,000 | 100,000 | 200,000 | 100,000 | 0 | 0 | 33,200,000 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 5,500,000 | 4,500,000 | 5,000,000 | 600,000 | 900,000 | 500,000 | 4,800,000 | 3,400,000 | 4,400,000 | 100,000 | 200,000 | 100,000 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||
Liability Derivatives | 3,400,000 | 5,500,000 | 900,000 | 100,000 | 600,000 | 900,000 | 1,900,000 | 4,500,000 | 3,400,000 | 3,400,000 | 5,500,000 | 2,900,000 | 900,000 | 900,000 | 100,000 | 600,000 | 600,000 | 900,000 | 400,000 | 1,900,000 | 1,900,000 | 4,500,000 | 1,900,000 | 0 | 0 | 0 | 0 | 3,400,000 | 5,500,000 | 900,000 | 100,000 | 600,000 | 900,000 | 400,000 | 1,900,000 | 4,500,000 | 1,900,000 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 3,400,000 | 5,500,000 | 2,900,000 | 900,000 | 100,000 | 600,000 | 900,000 | 400,000 | 1,900,000 | 4,500,000 | 1,900,000 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||
Amount of Gain or (Loss) Recognized in Income on Derivatives | 8,470,000 | 0 | 0 | -9,600,000 | -11,000,000 | -3,700,000 | -7,100,000 | -15,500,000 | -8,600,000 | -2,500,000 | -3,300,000 | -800,000 | -1,500,000 | 0 | -100,000 | 100,000 | -100,000 | -800,000 | 0 | -7,100,000 | -7,700,000 | -2,900,000 | -5,600,000 | -15,400,000 | -11,000,000 | 0 | 100,000 | -100,000 | 100,000 | 0 | -200,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross assets offset in Balance Sheet | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net recognized assets in Balance Sheet | 5,500,000 | 4,500,000 | 600,000 | 900,000 | 4,800,000 | 3,400,000 | 100,000 | 200,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Instruments | 2,800,000 | 1,500,000 | 0 | 0 | 2,800,000 | 1,300,000 | 0 | 200,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash Collateral | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Amount | 2,700,000 | 3,000,000 | 600,000 | 900,000 | 2,000,000 | 2,100,000 | 100,000 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross liabilities offset in Balance Sheet | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net recognized liabilities in Balance Sheet | 3,400,000 | 5,500,000 | 900,000 | 100,000 | 600,000 | 900,000 | 1,900,000 | 4,500,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Instruments | 2,800,000 | 1,500,000 | 900,000 | 0 | 0 | 0 | 1,900,000 | 1,500,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash Collateral | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Amount | 600,000 | 4,000,000 | 0 | 100,000 | 600,000 | 900,000 | 0 | 3,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Maximum initial maturity period of borrowings | 90 days | 90 days | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Aggregate fair value of all debt | 17,699,000,000 | 15,529,400,000 | 11,092,400,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Aggregate carrying value of all debt | 1,419,000,000 | 0 | 17,382,200,000 | 14,999,100,000 | 10,925,600,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Purchases | 130,000,000 | 130,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Settlements | $0 | $0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Inputs, Discount Rate | 6.00% | 21.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Assumptions, Expected Volatility Rate | 36.00% | 42.00% |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 1 Months Ended | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | 31-May-13 | Mar. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Related Party Transactions | ||||
Common Stock Shares Sold by Investors Group to Underwriter | 49,800,405,000 | 60,050,777 | 50,000,000 | |
Shares of common stock acquired | 23,200,000 | |||
Financing Arrangements with Related Parties [Abstract] | ||||
Outstanding debt with related parties | $189.80 | $174.40 |
Contingencies_and_OffBalance_S1
Contingencies and Off-Balance Sheet Commitments (Details) (USD $) | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Environmental indemnification obligations | |||
Aggregate amounts accrued for environmental liabilities | $2,600,000 | $2,600,000 | $1,500,000 |
Legal Proceedings | |||
Liability recorded for public liability and property damage matters | 327,500,000 | 332,232,000 | 281,534,000 |
Pending Litigation | Sobel Case | |||
Legal Proceedings | |||
Estimate of possible loss | $40,000,000 |
Guarantor_and_NonGuarantor_Con2
Guarantor and Non-Guarantor Condensed Consolidating Financial Statements (Details) (USD $) | 6 Months Ended | ||||||
In Thousands, unless otherwise specified | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 |
Condensed Financial Statements, Captions [Line Items] | |||||||
Parent's ownership percentage in Guarantor Subsidiaries | 100.00% | ||||||
ASSETS | |||||||
Cash and cash equivalents | $483,000 | $533,235 | $586,000 | $586,000 | $931,208 | $2,374,006 | $985,467 |
Restricted cash and cash equivalents | 393,200 | 571,634 | 308,039 | ||||
Receivables, less allowance for doubtful accounts | 1,656,000 | 1,886,596 | 1,616,382 | ||||
Due from Hertz affiliate | 800 | 12,809 | 0 | ||||
Inventories, at lower of cost or market | 128,300 | 105,728 | 83,978 | ||||
Prepaid expenses and other assets | 763,200 | 461,502 | 416,134 | ||||
Revenue earning equipment, net | 15,706,000 | 12,908,336 | 10,105,409 | ||||
Property and equipment, net | 1,465,600 | 1,436,386 | 1,251,854 | ||||
Investment in subsidiaries, net | 0 | 0 | 0 | ||||
Other intangible assets, net | 3,968,500 | 4,032,111 | 2,562,234 | ||||
Goodwill | 1,366,300 | 1,341,872 | 392,094 | 328,600 | |||
Total assets | 25,930,900 | 23,290,209 | 17,667,332 | ||||
LIABILITIES AND EQUITY | |||||||
Due to Hertz affiliate | 0 | 0 | 412 | ||||
Accounts payable | 1,484,500 | 999,061 | 897,489 | ||||
Accrued liabilities | 1,182,300 | 1,178,460 | 1,126,338 | ||||
Accrued taxes | 183,600 | 167,314 | 162,984 | ||||
Debt | 17,394,200 | 15,014,474 | 10,907,849 | ||||
Public liability and property damage | 327,500 | 332,232 | 281,534 | ||||
Deferred taxes on income | 2,786,800 | 4,558,500 | 3,684,700 | ||||
Total liabilities | 23,358,900 | 20,372,681 | 15,038,478 | ||||
Equity: | |||||||
The Hertz Corporation and Subsidiaries stockholder's equity | 2,572,000 | 2,917,509 | 2,628,835 | ||||
Noncontrolling interest | 0 | 19 | 19 | ||||
Total equity | 2,572,000 | 2,917,528 | 2,628,854 | 2,502,429 | 2,461,948 | ||
Total liabilities and equity | 25,930,900 | 23,290,209 | 17,667,332 | ||||
Parent (The Hertz Corporation) | |||||||
ASSETS | |||||||
Cash and cash equivalents | 87,500 | 24,602 | 265,600 | 565,002 | 1,754,378 | 108,522 | |
Restricted cash and cash equivalents | 33,700 | 32,681 | 44,663 | ||||
Receivables, less allowance for doubtful accounts | 500,800 | 544,454 | 297,292 | ||||
Due from Hertz affiliate | 1,042,700 | 1,047,986 | 655,411 | ||||
Inventories, at lower of cost or market | 30,800 | 24,422 | 22,440 | ||||
Prepaid expenses and other assets | 2,894,700 | 2,570,539 | 2,088,579 | ||||
Revenue earning equipment, net | 175,300 | 104,207 | 167,304 | ||||
Property and equipment, net | 897,600 | 865,694 | 824,381 | ||||
Investment in subsidiaries, net | 6,833,100 | 6,964,916 | 4,413,289 | ||||
Other intangible assets, net | 70,200 | 74,606 | 94,682 | ||||
Goodwill | 106,200 | 106,210 | 100,221 | ||||
Total assets | 12,672,600 | 12,360,317 | 9,273,264 | ||||
LIABILITIES AND EQUITY | |||||||
Due to Hertz affiliate | 2,097,100 | 2,254,223 | 1,251,347 | ||||
Accounts payable | 165,200 | 239,247 | 188,695 | ||||
Accrued liabilities | 642,700 | 605,680 | 607,673 | ||||
Accrued taxes | 60,300 | 54,357 | 54,559 | ||||
Debt | 7,042,300 | 6,190,040 | 4,434,274 | ||||
Public liability and property damage | 93,000 | 99,261 | 107,881 | ||||
Deferred taxes on income | 0 | ||||||
Total liabilities | 10,100,600 | 9,442,808 | 6,644,429 | ||||
Equity: | |||||||
The Hertz Corporation and Subsidiaries stockholder's equity | 2,572,000 | 2,917,509 | 2,628,835 | ||||
Noncontrolling interest | 0 | 0 | 0 | ||||
Total equity | 2,572,000 | 2,917,509 | 2,628,835 | 2,485,927 | 2,444,655 | ||
Total liabilities and equity | 12,672,600 | 12,360,317 | 9,273,264 | ||||
Guarantor Subsidiaries | |||||||
ASSETS | |||||||
Cash and cash equivalents | 24,500 | 2,578 | 4,000 | 7,385 | 5,158 | 6,043 | |
Restricted cash and cash equivalents | 17,000 | 14,535 | 28,130 | ||||
Receivables, less allowance for doubtful accounts | 482,100 | 292,467 | 218,754 | ||||
Due from Hertz affiliate | 1,842,700 | 59,181 | 65,972 | ||||
Inventories, at lower of cost or market | 39,800 | 34,101 | 26,541 | ||||
Prepaid expenses and other assets | 244,300 | 183,573 | 32,974 | ||||
Revenue earning equipment, net | 1,893,000 | 1,734,325 | 1,505,867 | ||||
Property and equipment, net | 315,100 | 206,332 | 170,874 | ||||
Investment in subsidiaries, net | 1,367,900 | 506,123 | 460,201 | ||||
Other intangible assets, net | 3,848,100 | 2,352,342 | 2,363,617 | ||||
Goodwill | 1,035,600 | 133,923 | 67,228 | ||||
Total assets | 11,110,100 | 5,519,480 | 4,947,543 | ||||
LIABILITIES AND EQUITY | |||||||
Due to Hertz affiliate | 2,498,800 | 628,275 | 266,604 | ||||
Accounts payable | 267,900 | 157,742 | 165,258 | ||||
Accrued liabilities | 242,200 | 84,992 | 209,263 | ||||
Accrued taxes | 33,900 | 11,511 | 134,186 | ||||
Debt | 68,500 | 49,445 | 4,237 | ||||
Public liability and property damage | 58,500 | 10,390 | 14,025 | ||||
Deferred taxes on income | 2,232,700 | 2,205,600 | |||||
Total liabilities | 5,402,500 | 2,718,554 | 2,242,744 | ||||
Equity: | |||||||
The Hertz Corporation and Subsidiaries stockholder's equity | 5,707,600 | 2,800,926 | 2,704,799 | ||||
Noncontrolling interest | 0 | 0 | 0 | ||||
Total equity | 5,707,600 | 2,800,926 | 2,704,799 | ||||
Total liabilities and equity | 11,110,100 | 5,519,480 | 4,947,543 | ||||
Non-Guarantor Subsidiaries | |||||||
ASSETS | |||||||
Cash and cash equivalents | 371,000 | 506,055 | 316,400 | 358,821 | 614,470 | 870,902 | |
Restricted cash and cash equivalents | 342,500 | 524,418 | 235,246 | ||||
Receivables, less allowance for doubtful accounts | 719,300 | 1,049,675 | 1,100,336 | ||||
Due from Hertz affiliate | 3,691,700 | 2,199,247 | 1,194,041 | ||||
Inventories, at lower of cost or market | 57,700 | 47,205 | 34,997 | ||||
Prepaid expenses and other assets | 407,200 | 203,678 | 137,189 | ||||
Revenue earning equipment, net | 13,637,700 | 11,069,804 | 8,432,238 | ||||
Property and equipment, net | 252,900 | 364,360 | 256,599 | ||||
Other intangible assets, net | 50,200 | 1,605,163 | 103,935 | ||||
Goodwill | 224,500 | 1,101,739 | 224,645 | ||||
Total assets | 19,754,700 | 18,671,344 | 12,078,047 | ||||
LIABILITIES AND EQUITY | |||||||
Due to Hertz affiliate | 1,980,400 | 411,107 | 397,885 | ||||
Accounts payable | 1,051,400 | 602,072 | 543,536 | ||||
Accrued liabilities | 343,600 | 487,788 | 309,402 | ||||
Accrued taxes | 1,335,000 | 1,003,127 | -13,889 | ||||
Debt | 10,283,400 | 8,774,989 | 6,469,338 | ||||
Public liability and property damage | 176,000 | 222,581 | 159,628 | ||||
Deferred taxes on income | 2,091,500 | 2,070,100 | |||||
Total liabilities | 17,261,300 | 14,001,212 | 9,909,337 | ||||
Equity: | |||||||
The Hertz Corporation and Subsidiaries stockholder's equity | 2,493,400 | 4,670,113 | 2,168,691 | ||||
Noncontrolling interest | 0 | 19 | 19 | ||||
Total equity | 2,493,400 | 4,670,132 | 2,168,710 | ||||
Total liabilities and equity | 19,754,700 | 18,671,344 | 12,078,047 | ||||
Eliminations | |||||||
ASSETS | |||||||
Cash and cash equivalents | 0 | 0 | 0 | 0 | 0 | 0 | |
Restricted cash and cash equivalents | 0 | 0 | 0 | ||||
Receivables, less allowance for doubtful accounts | -46,200 | 0 | 0 | ||||
Due from Hertz affiliate | -6,576,300 | -3,293,605 | -1,915,424 | ||||
Inventories, at lower of cost or market | 0 | 0 | 0 | ||||
Prepaid expenses and other assets | -2,783,000 | -2,496,288 | -1,842,608 | ||||
Revenue earning equipment, net | 0 | 0 | 0 | ||||
Property and equipment, net | 0 | 0 | 0 | ||||
Investment in subsidiaries, net | -8,201,000 | -7,471,039 | -4,873,490 | ||||
Other intangible assets, net | 0 | 0 | 0 | ||||
Goodwill | 0 | 0 | 0 | ||||
Total assets | -17,606,500 | -13,260,932 | -8,631,522 | ||||
LIABILITIES AND EQUITY | |||||||
Due to Hertz affiliate | -6,576,300 | -3,293,605 | -1,915,424 | ||||
Accounts payable | 0 | 0 | 0 | ||||
Accrued liabilities | -46,200 | 0 | 0 | ||||
Accrued taxes | -1,245,600 | -901,681 | -11,872 | ||||
Debt | 0 | 0 | 0 | ||||
Public liability and property damage | 0 | 0 | 0 | ||||
Deferred taxes on income | -1,537,400 | -1,594,600 | |||||
Total liabilities | -9,405,500 | -5,789,893 | -3,758,032 | ||||
Equity: | |||||||
The Hertz Corporation and Subsidiaries stockholder's equity | -8,201,000 | -7,471,039 | -4,873,490 | ||||
Noncontrolling interest | 0 | 0 | 0 | ||||
Total equity | -8,201,000 | -7,471,039 | -4,873,490 | ||||
Total liabilities and equity | ($17,606,500) | ($13,260,932) | ($8,631,522) |
Guarantor_and_NonGuarantor_Con3
Guarantor and Non-Guarantor Condensed Consolidating Financial Statements (Details 2) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||
In Thousands, unless otherwise specified | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | ||||||||||||||
Total revenues | $2,714,600 | $2,318,600 | $2,516,200 | $2,225,100 | $1,960,900 | $2,013,800 | $2,432,300 | $2,072,300 | $1,780,000 | $5,151,200 | $4,186,100 | $9,020,807 | $8,298,380 | $7,562,534 |
Expenses: | ||||||||||||||
Direct operating | 1,405,900 | 1,188,900 | 2,757,100 | 2,303,100 | 4,795,788 | 4,566,378 | 4,283,394 | |||||||
Depreciation of revenue earning equipment and lease charges | 641,100 | 519,800 | 1,228,100 | 1,034,900 | 2,148,158 | 1,905,739 | 1,868,147 | |||||||
Selling, general and administrative | 274,800 | 206,600 | 526,300 | 414,300 | 945,581 | 745,117 | 664,442 | |||||||
Interest expense | 170,200 | 139,300 | 333,500 | 288,800 | 597,788 | 650,254 | 726,539 | |||||||
Interest income | -2,000 | -500 | -3,800 | -1,600 | -4,902 | -5,551 | -12,315 | |||||||
Other (income) expense, net | -1,100 | -600 | -1,700 | -1,000 | 35,542 | 62,548 | 5 | |||||||
Total expenses | 2,488,900 | 2,053,500 | 4,839,500 | 4,038,500 | 8,517,955 | 7,924,485 | 7,530,212 | |||||||
Income before income taxes | 225,700 | -26,900 | 382,100 | 171,700 | -24,000 | 105,400 | 308,200 | 107,000 | -146,700 | 311,700 | 147,600 | 502,852 | 373,895 | 32,322 |
Provision for taxes on income | -95,800 | -70,700 | -155,300 | -94,900 | -227,073 | -143,846 | -33,322 | |||||||
Equity in earnings (losses) of subsidiaries (net of tax) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||
Net loss attributable to The Hertz Corporation and Subsidiaries' common stockholder | 129,900 | -28,300 | 251,300 | 101,000 | -48,200 | 58,800 | 212,600 | 62,100 | -123,000 | 156,400 | 52,700 | 275,779 | 210,489 | -18,383 |
Parent (The Hertz Corporation) | ||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | ||||||||||||||
Total revenues | 1,147,000 | 1,074,900 | 2,201,600 | 2,042,900 | 4,259,049 | 4,068,310 | 3,961,435 | |||||||
Expenses: | ||||||||||||||
Direct operating | 618,800 | 609,400 | 1,231,700 | 1,181,200 | 2,384,829 | 2,262,371 | 2,217,864 | |||||||
Depreciation of revenue earning equipment and lease charges | 608,000 | 560,600 | 1,269,400 | 1,099,300 | 2,402,032 | 1,996,733 | 1,938,416 | |||||||
Selling, general and administrative | 122,300 | 94,400 | 229,500 | 198,600 | 448,100 | 326,794 | 320,192 | |||||||
Interest expense | 88,000 | 56,000 | 169,100 | 119,600 | ||||||||||
Interest income | 0 | 0 | 0 | -100 | ||||||||||
Other (income) expense, net | 14,500 | 0 | 14,300 | 0 | -10,656 | 62,396 | 9,915 | |||||||
Total expenses | 1,451,600 | 1,320,400 | 2,914,000 | 2,598,600 | 5,477,742 | 4,947,393 | 4,783,663 | |||||||
Income before income taxes | -304,600 | -245,500 | -712,400 | -555,700 | -1,218,693 | -879,083 | -822,228 | |||||||
Provision for taxes on income | 109,300 | 90,700 | 257,500 | 201,900 | 476,444 | 342,469 | 314,692 | |||||||
Equity in earnings (losses) of subsidiaries (net of tax) | 325,200 | 255,700 | 611,300 | 406,500 | 1,018,028 | 747,103 | 489,153 | |||||||
Net loss attributable to The Hertz Corporation and Subsidiaries' common stockholder | 129,900 | 100,900 | 156,400 | 52,700 | 275,779 | 210,489 | -18,383 | |||||||
Guarantor Subsidiaries | ||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | ||||||||||||||
Total revenues | 662,800 | 233,100 | 1,284,900 | 442,900 | 975,500 | 809,093 | 701,264 | |||||||
Expenses: | ||||||||||||||
Direct operating | 357,100 | 141,100 | 710,000 | 274,400 | 553,099 | 497,053 | 452,674 | |||||||
Depreciation of revenue earning equipment and lease charges | 168,900 | 48,000 | 321,300 | 92,400 | 198,322 | 180,807 | 200,252 | |||||||
Selling, general and administrative | 64,700 | 31,400 | 124,400 | 56,900 | 123,300 | 85,414 | 67,739 | |||||||
Interest expense | 8,500 | 9,100 | 18,800 | 19,000 | ||||||||||
Interest income | -1,600 | -200 | -3,100 | -400 | ||||||||||
Other (income) expense, net | -2,200 | 0 | -2,200 | 0 | -19 | -18 | -3 | |||||||
Total expenses | 595,400 | 229,400 | 1,169,200 | 442,300 | 914,381 | 790,482 | 740,730 | |||||||
Income before income taxes | 67,400 | 3,700 | 115,700 | 600 | 61,119 | 18,611 | -39,466 | |||||||
Provision for taxes on income | -25,200 | -1,300 | -43,100 | -600 | -44,846 | -10,016 | 10,718 | |||||||
Equity in earnings (losses) of subsidiaries (net of tax) | 56,800 | -33,800 | 111,600 | -22,600 | 45,922 | 26,215 | -5,268 | |||||||
Net loss attributable to The Hertz Corporation and Subsidiaries' common stockholder | 99,000 | -31,400 | 184,200 | -22,600 | 62,195 | 34,810 | -34,016 | |||||||
Non-Guarantor Subsidiaries | ||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | ||||||||||||||
Total revenues | 1,617,500 | 1,493,100 | 3,120,600 | 2,834,300 | 6,255,039 | 5,733,827 | 5,350,348 | |||||||
Expenses: | ||||||||||||||
Direct operating | 430,300 | 438,400 | 815,900 | 847,500 | 1,857,860 | 1,806,954 | 1,612,856 | |||||||
Depreciation of revenue earning equipment and lease charges | 576,400 | 487,200 | 1,092,600 | 977,200 | 2,016,585 | 2,041,049 | 2,179,992 | |||||||
Selling, general and administrative | 88,000 | 80,800 | 172,600 | 158,800 | 374,181 | 332,909 | 276,511 | |||||||
Interest expense | 73,700 | 74,200 | 145,600 | 150,200 | ||||||||||
Interest income | -400 | -300 | -700 | -1,100 | ||||||||||
Other (income) expense, net | -13,400 | -600 | -13,800 | -1,000 | 46,217 | 170 | -9,907 | |||||||
Total expenses | 1,154,600 | 1,079,700 | 2,212,200 | 2,131,600 | 4,594,613 | 4,499,460 | 4,456,332 | |||||||
Income before income taxes | 462,900 | 413,400 | 908,400 | 702,700 | 1,660,426 | 1,234,367 | 894,016 | |||||||
Provision for taxes on income | -179,900 | -160,100 | -369,700 | -296,200 | -658,671 | -476,299 | -358,732 | |||||||
Equity in earnings (losses) of subsidiaries (net of tax) | 0 | 0 | 0 | 0 | ||||||||||
Net loss attributable to The Hertz Corporation and Subsidiaries' common stockholder | 283,000 | 253,300 | 538,700 | 406,500 | 1,001,755 | 738,508 | 517,901 | |||||||
Eliminations | ||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | ||||||||||||||
Total revenues | -712,700 | -576,000 | -1,455,900 | -1,134,000 | -2,468,781 | -2,312,850 | -2,450,513 | |||||||
Expenses: | ||||||||||||||
Direct operating | -300 | 0 | -500 | 0 | 0 | 0 | 0 | |||||||
Depreciation of revenue earning equipment and lease charges | -712,200 | -576,000 | -1,455,200 | -1,134,000 | -2,468,781 | -2,312,850 | -2,450,513 | |||||||
Selling, general and administrative | -200 | 0 | -200 | 0 | 0 | 0 | 0 | |||||||
Interest expense | 0 | 0 | 0 | 0 | ||||||||||
Interest income | 0 | 0 | 0 | 0 | ||||||||||
Other (income) expense, net | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||
Total expenses | -712,700 | -576,000 | -1,455,900 | -1,134,000 | -2,468,781 | -2,312,850 | -2,450,513 | |||||||
Income before income taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||
Provision for taxes on income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||
Equity in earnings (losses) of subsidiaries (net of tax) | -382,000 | -221,900 | -722,900 | -383,900 | -1,063,950 | -773,318 | -483,885 | |||||||
Net loss attributable to The Hertz Corporation and Subsidiaries' common stockholder | ($382,000) | ($221,900) | ($722,900) | ($383,900) | ($1,063,950) | ($773,318) | ($483,885) |
Guarantor_and_NonGuarantor_Con4
Guarantor and Non-Guarantor Condensed Consolidating Financial Statements (Details 3) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2012 | Mar. 31, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) | ||||||||
Net income (loss) | $129,900 | $100,900 | $52,700 | $156,400 | $275,779 | $230,049 | ($1,000) | |
Other comprehensive income, net of tax | -22,200 | -42,000 | -9,600 | -46,400 | -9,600 | 1,522 | -66,237 | 41,154 |
Comprehensive income | 107,700 | 58,900 | 43,100 | 110,000 | 277,301 | 163,812 | 40,154 | |
Parent (The Hertz Corporation) | ||||||||
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) | ||||||||
Net income (loss) | 129,900 | 100,900 | 52,700 | 156,400 | 275,779 | 210,489 | -18,383 | |
Other comprehensive income, net of tax | -22,200 | -42,000 | -9,600 | -46,500 | 1,522 | -66,237 | 41,154 | |
Comprehensive income | 107,700 | 58,900 | 43,100 | 109,900 | 277,301 | 144,252 | 22,771 | |
Guarantor Subsidiaries | ||||||||
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) | ||||||||
Net income (loss) | 99,000 | -31,400 | -22,600 | 184,200 | 62,195 | 34,810 | -34,016 | |
Other comprehensive income, net of tax | -3,200 | 0 | 0 | -400 | 121 | 0 | 0 | |
Comprehensive income | 95,800 | -31,400 | -22,600 | 183,800 | 62,316 | 34,810 | -34,016 | |
Non-Guarantor Subsidiaries | ||||||||
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) | ||||||||
Net income (loss) | 283,000 | 253,300 | 406,500 | 538,700 | 1,001,755 | 758,068 | 535,284 | |
Other comprehensive income, net of tax | -24,400 | -45,600 | -16,400 | -51,300 | 6,816 | -34,619 | 28,427 | |
Comprehensive income | 258,600 | 207,700 | 390,100 | 487,400 | 1,008,571 | 723,449 | 563,711 | |
Eliminations | ||||||||
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) | ||||||||
Net income (loss) | -382,000 | -221,900 | -383,900 | -722,900 | -1,063,950 | -773,318 | -483,885 | |
Other comprehensive income, net of tax | 27,600 | 45,600 | 16,400 | 51,800 | -6,937 | 34,619 | -28,427 | |
Comprehensive income | ($354,400) | ($176,300) | ($367,500) | ($671,100) | ($1,070,887) | ($738,699) | ($512,312) |
Guarantor_and_NonGuarantor_Con5
Guarantor and Non-Guarantor Condensed Consolidating Financial Statements (Details 4) (USD $) | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Mar. 31, 2012 | |
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||
Net cash provided by (used in) operating activities | $1,466,000,000 | $1,183,000,000 | $2,748,412,000 | $2,258,521,000 | $2,237,927,000 | |
Cash flows from investing activities: | ||||||
Net change in restricted cash and cash equivalents | 175,400,000 | 130,100,000 | -261,605,000 | -101,766,000 | 160,516,000 | |
Revenue earning equipment expenditures | -6,825,500,000 | -5,711,000,000 | -9,613,239,000 | -9,454,311,000 | -8,440,872,000 | |
Proceeds from disposal of revenue earning equipment | 3,742,800,000 | 3,608,300,000 | 7,125,096,000 | 7,850,442,000 | 7,518,446,000 | |
Property and equipment expenditures | -168,100,000 | -137,200,000 | -312,786,000 | -281,695,000 | -179,209,000 | |
Proceeds from disposal of property and equipment | 42,500,000 | 56,400,000 | 137,694,000 | 53,814,000 | 38,905,000 | |
Capital contributions to subsidiaries | 0 | 0 | 0 | 0 | 0 | |
Return of capital from subsidiaries | 0 | 0 | 0 | 0 | 0 | |
Loan to Parent From Non-Guarantor | 0 | 0 | 0 | 0 | -6,173,000 | |
Acquisitions, net of cash acquired | -229,200,000 | -161,800,000 | -1,905,168,000 | -227,081,000 | -47,571,000 | |
Proceeds from disposal of business | 0 | 84,497,000 | 0 | 0 | ||
Other investing activities | -2,000,000 | -600,000 | -1,779,000 | 586,000 | 2,726,000 | |
Net cash used in investing activities | -3,264,100,000 | -2,215,800,000 | -4,747,290,000 | -2,192,902,000 | -943,568,000 | |
Cash flows from financing activities: | ||||||
Proceeds from issuance of long-term debt | 1,204,400,000 | 270,500,000 | 2,237,280,000 | 3,062,479,000 | 2,635,713,000 | |
Payment of long-term debt | -320,700,000 | -643,100,000 | -952,144,000 | -3,649,300,000 | -2,954,233,000 | |
Short-term borrowings: | ||||||
Proceeds | 332,000,000 | 246,700,000 | 438,387,000 | 460,890,000 | 490,490,000 | |
Payments | -435,900,000 | -656,200,000 | -1,280,143,000 | -1,194,056,000 | -970,949,000 | |
Proceeds under the revolving lines of credit | 3,680,100,000 | 3,535,500,000 | ||||
Payments under the revolving lines of credit | -2,217,900,000 | -1,991,700,000 | ||||
Capital contributions received from parent | 0 | 0 | 0 | 0 | 0 | |
Loan to Parent From Non-Guarantor | 0 | 0 | 0 | |||
Payment of dividends and return of capital | -479,700,000 | -12,500,000 | -25,000,000 | -22,950,000 | -23,000,000 | |
Proceeds from employee stock purchase plan | 2,400,000 | 2,000,000 | 4,275,000 | 3,577,000 | 3,208,000 | |
Loan from Hertz Global Holdings, Inc. | 12,000,000 | -13,900,000 | -13,220,000 | -984,000 | -6,173,000 | |
Purchase of noncontrolling interest | 0 | -38,000,000 | -38,000,000 | 0 | 0 | |
Payment of financing costs | -20,600,000 | -6,900,000 | -49,433,000 | -91,482,000 | -78,151,000 | |
Net cash provided by (used in) financing activities | 1,756,100,000 | 692,400,000 | 1,595,166,000 | -1,512,255,000 | 104,517,000 | |
Effect of foreign exchange rate changes on cash and cash equivalents | -8,200,000 | -4,800,000 | 5,739,000 | 3,838,000 | -10,337,000 | |
Net decrease in cash and cash equivalents during the period | -50,200,000 | -345,200,000 | -397,973,000 | -1,442,798,000 | 1,388,539,000 | |
Cash and cash equivalents at beginning of period | 533,235,000 | 931,208,000 | 931,208,000 | 2,374,006,000 | 985,467,000 | 586,000,000 |
Cash and cash equivalents at end of period | 483,000,000 | 586,000,000 | 533,235,000 | 931,208,000 | 2,374,006,000 | 586,000,000 |
Parent (The Hertz Corporation) | ||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||
Net cash provided by (used in) operating activities | -365,700,000 | -219,000,000 | 1,677,648,000 | 1,000,597,000 | 337,055,000 | |
Cash flows from investing activities: | ||||||
Net change in restricted cash and cash equivalents | -1,000,000 | 12,600,000 | 11,981,000 | -28,570,000 | 19,932,000 | |
Revenue earning equipment expenditures | -87,900,000 | -73,800,000 | -88,120,000 | -142,134,000 | -188,057,000 | |
Proceeds from disposal of revenue earning equipment | 47,700,000 | 54,400,000 | 79,390,000 | 163,330,000 | 169,451,000 | |
Property and equipment expenditures | -99,100,000 | -80,200,000 | -173,053,000 | -189,562,000 | -92,415,000 | |
Proceeds from disposal of property and equipment | 24,600,000 | 44,300,000 | 67,370,000 | 23,952,000 | 4,311,000 | |
Capital contributions to subsidiaries | -485,700,000 | -2,215,900,000 | -4,267,118,000 | -3,549,088,000 | -1,544,332,000 | |
Return of capital from subsidiaries | 651,000,000 | 2,220,600,000 | 1,829,256,000 | 2,590,025,000 | 1,877,095,000 | |
Loan to Parent From Non-Guarantor | 0 | 0 | 0 | 490,273,000 | -6,173,000 | |
Acquisitions, net of cash acquired | 0 | 0 | -1,708,520,000 | -214,384,000 | -35,000 | |
Proceeds from disposal of business | 0 | 0 | ||||
Other investing activities | 0 | 0 | 0 | 0 | 0 | |
Net cash used in investing activities | 49,600,000 | -38,000,000 | -4,248,814,000 | -1,379,322,000 | 249,133,000 | |
Cash flows from financing activities: | ||||||
Proceeds from issuance of long-term debt | 250,000,000 | 260,000,000 | 2,210,000,000 | 2,455,309,000 | 1,209,866,000 | |
Payment of long-term debt | -22,800,000 | -637,300,000 | -650,407,000 | -3,596,295,000 | -73,342,000 | |
Short-term borrowings: | ||||||
Proceeds | 0 | 0 | 0 | 0 | 0 | |
Payments | 0 | -26,800,000 | -26,775,000 | -29,224,000 | -2,615,000 | |
Proceeds under the revolving lines of credit | 1,360,000,000 | 1,360,000,000 | ||||
Payments under the revolving lines of credit | -735,000,000 | -950,000,000 | ||||
Capital contributions received from parent | 0 | 0 | 0 | 0 | 0 | |
Loan to Parent From Non-Guarantor | 0 | 18,300,000 | 385,108,000 | 490,273,000 | 0 | |
Payment of dividends and return of capital | -479,700,000 | -12,500,000 | -25,000,000 | -22,950,000 | -23,000,000 | |
Proceeds from employee stock purchase plan | 2,400,000 | 2,000,000 | 4,275,000 | 3,577,000 | 3,208,000 | |
Loan from Hertz Global Holdings, Inc. | 12,000,000 | -13,900,000 | -13,220,000 | -984,000 | -6,173,000 | |
Purchase of noncontrolling interest | -38,000,000 | -38,000,000 | 0 | 0 | ||
Payment of financing costs | -7,900,000 | -4,200,000 | -35,215,000 | -81,229,000 | -29,111,000 | |
Net cash provided by (used in) financing activities | 379,000,000 | -42,400,000 | 2,030,766,000 | -810,651,000 | 1,059,668,000 | |
Effect of foreign exchange rate changes on cash and cash equivalents | 0 | 0 | 0 | 0 | 0 | |
Net decrease in cash and cash equivalents during the period | 62,900,000 | -299,400,000 | -540,400,000 | -1,189,376,000 | 1,645,856,000 | |
Cash and cash equivalents at beginning of period | 24,602,000 | 565,002,000 | 565,002,000 | 1,754,378,000 | 108,522,000 | 265,600,000 |
Cash and cash equivalents at end of period | 87,500,000 | 24,602,000 | 565,002,000 | 1,754,378,000 | 265,600,000 | |
Guarantor Subsidiaries | ||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||
Net cash provided by (used in) operating activities | 425,100,000 | 334,200,000 | 690,292,000 | 773,170,000 | 88,941,000 | |
Cash flows from investing activities: | ||||||
Net change in restricted cash and cash equivalents | 200,000 | 18,200,000 | 13,596,000 | -2,662,000 | -17,514,000 | |
Revenue earning equipment expenditures | -347,700,000 | -334,100,000 | -763,610,000 | -670,056,000 | -96,452,000 | |
Proceeds from disposal of revenue earning equipment | 16,900,000 | 162,600,000 | 276,342,000 | 170,522,000 | 75,139,000 | |
Property and equipment expenditures | -18,000,000 | -24,200,000 | -32,022,000 | -29,696,000 | -14,137,000 | |
Proceeds from disposal of property and equipment | 5,500,000 | 4,200,000 | 11,839,000 | 9,263,000 | 10,416,000 | |
Capital contributions to subsidiaries | 0 | 0 | 0 | 0 | 0 | |
Return of capital from subsidiaries | 0 | 0 | 0 | 0 | 0 | |
Loan to Parent From Non-Guarantor | 0 | 0 | 0 | 0 | 0 | |
Acquisitions, net of cash acquired | -2,800,000 | -161,800,000 | -196,648,000 | -2,100,000 | -43,789,000 | |
Proceeds from disposal of business | 0 | 0 | ||||
Other investing activities | 0 | 0 | 0 | -13,602,000 | 0 | |
Net cash used in investing activities | -345,900,000 | -335,100,000 | -690,503,000 | -538,331,000 | -86,243,000 | |
Cash flows from financing activities: | ||||||
Proceeds from issuance of long-term debt | 0 | 0 | 0 | 0 | 0 | |
Payment of long-term debt | 0 | 0 | -18,000 | -17,000 | -68,000 | |
Short-term borrowings: | ||||||
Proceeds | 0 | 0 | 0 | 0 | 0 | |
Payments | 0 | 0 | 0 | 0 | 0 | |
Proceeds under the revolving lines of credit | 1,600,000 | 1,900,000 | ||||
Payments under the revolving lines of credit | -5,000,000 | -2,900,000 | ||||
Capital contributions received from parent | 0 | 0 | 0 | 0 | 0 | |
Loan to Parent From Non-Guarantor | -57,000,000 | 0 | 0 | |||
Payment of dividends and return of capital | 0 | 0 | 0 | 0 | 0 | |
Proceeds from employee stock purchase plan | 0 | 0 | 0 | 0 | 0 | |
Loan from Hertz Global Holdings, Inc. | 0 | 0 | 0 | 0 | ||
Purchase of noncontrolling interest | 0 | 0 | ||||
Payment of financing costs | -800,000 | -1,500,000 | -3,316,000 | -2,817,000 | 0 | |
Net cash provided by (used in) financing activities | -61,200,000 | -2,500,000 | -4,596,000 | -232,612,000 | -3,583,000 | |
Effect of foreign exchange rate changes on cash and cash equivalents | 0 | 0 | 0 | 0 | 0 | |
Net decrease in cash and cash equivalents during the period | 18,000,000 | -3,400,000 | -4,807,000 | 2,227,000 | -885,000 | |
Cash and cash equivalents at beginning of period | 2,578,000 | 7,385,000 | 7,385,000 | 5,158,000 | 6,043,000 | 4,000,000 |
Cash and cash equivalents at end of period | 24,500,000 | 2,578,000 | 7,385,000 | 5,158,000 | 4,000,000 | |
Non-Guarantor Subsidiaries | ||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||
Net cash provided by (used in) operating activities | 1,811,900,000 | 1,409,300,000 | 1,155,789,000 | 1,038,124,000 | 2,193,486,000 | |
Cash flows from investing activities: | ||||||
Net change in restricted cash and cash equivalents | 176,200,000 | 99,300,000 | -287,182,000 | -70,534,000 | 158,098,000 | |
Revenue earning equipment expenditures | -6,389,900,000 | -5,303,100,000 | -8,761,509,000 | -8,642,121,000 | -8,156,363,000 | |
Proceeds from disposal of revenue earning equipment | 3,678,200,000 | 3,391,300,000 | 6,769,364,000 | 7,516,590,000 | 7,273,856,000 | |
Property and equipment expenditures | -51,000,000 | -32,800,000 | -107,711,000 | -62,437,000 | -72,657,000 | |
Proceeds from disposal of property and equipment | 12,400,000 | 7,900,000 | 58,485,000 | 20,599,000 | 24,178,000 | |
Capital contributions to subsidiaries | 0 | 0 | 0 | 0 | 0 | |
Return of capital from subsidiaries | 0 | 0 | 0 | 0 | 0 | |
Loan to Parent From Non-Guarantor | 57,000,000 | -18,300,000 | -385,108,000 | 0 | 0 | |
Acquisitions, net of cash acquired | -226,400,000 | 0 | 0 | -10,597,000 | -3,747,000 | |
Proceeds from disposal of business | 0 | 84,497,000 | ||||
Other investing activities | -2,000,000 | -600,000 | -1,779,000 | 14,188,000 | 2,726,000 | |
Net cash used in investing activities | -2,745,500,000 | -1,856,300,000 | -2,630,943,000 | -1,724,585,000 | -773,695,000 | |
Cash flows from financing activities: | ||||||
Proceeds from issuance of long-term debt | 954,400,000 | 10,500,000 | 27,280,000 | 607,170,000 | 1,425,847,000 | |
Payment of long-term debt | -297,900,000 | -5,800,000 | -301,719,000 | -52,988,000 | -2,880,823,000 | |
Short-term borrowings: | ||||||
Proceeds | 332,000,000 | 246,700,000 | 438,387,000 | 460,890,000 | 490,490,000 | |
Payments | -435,900,000 | -629,400,000 | -1,253,368,000 | -1,164,832,000 | -968,334,000 | |
Proceeds under the revolving lines of credit | 2,318,500,000 | 2,173,600,000 | ||||
Payments under the revolving lines of credit | -1,477,900,000 | -1,038,800,000 | ||||
Capital contributions received from parent | 485,700,000 | 2,215,900,000 | 4,267,118,000 | 3,549,088,000 | 1,544,332,000 | |
Loan to Parent From Non-Guarantor | 0 | 0 | 0 | -490,273,000 | ||
Payment of dividends and return of capital | -1,056,300,000 | -2,562,100,000 | -2,604,573,000 | -3,143,395,000 | -2,258,650,000 | |
Proceeds from employee stock purchase plan | 0 | 0 | 0 | 0 | 0 | |
Loan from Hertz Global Holdings, Inc. | 0 | 0 | 0 | 0 | ||
Purchase of noncontrolling interest | 0 | 0 | ||||
Payment of financing costs | -11,900,000 | -1,200,000 | -10,902,000 | -7,436,000 | -49,040,000 | |
Net cash provided by (used in) financing activities | 810,700,000 | 409,400,000 | 1,616,649,000 | 426,974,000 | -1,665,886,000 | |
Effect of foreign exchange rate changes on cash and cash equivalents | -8,200,000 | -4,800,000 | 5,739,000 | 3,838,000 | -10,337,000 | |
Net decrease in cash and cash equivalents during the period | -131,100,000 | -42,400,000 | 147,234,000 | -255,649,000 | -256,432,000 | |
Cash and cash equivalents at beginning of period | 506,055,000 | 358,821,000 | 358,821,000 | 614,470,000 | 870,902,000 | 316,400,000 |
Cash and cash equivalents at end of period | 371,000,000 | 506,055,000 | 358,821,000 | 614,470,000 | 316,400,000 | |
Eliminations | ||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||
Net cash provided by (used in) operating activities | -405,300,000 | -341,500,000 | -775,317,000 | -553,370,000 | -381,555,000 | |
Cash flows from investing activities: | ||||||
Net change in restricted cash and cash equivalents | 0 | 0 | 0 | 0 | 0 | |
Revenue earning equipment expenditures | 0 | 0 | 0 | 0 | 0 | |
Proceeds from disposal of revenue earning equipment | 0 | 0 | 0 | 0 | 0 | |
Property and equipment expenditures | 0 | 0 | 0 | 0 | 0 | |
Proceeds from disposal of property and equipment | 0 | 0 | 0 | 0 | ||
Capital contributions to subsidiaries | 485,700,000 | 2,215,900,000 | 4,267,118,000 | 3,549,088,000 | 1,544,332,000 | |
Return of capital from subsidiaries | -651,000,000 | -2,220,600,000 | -1,829,256,000 | -2,590,025,000 | -1,877,095,000 | |
Loan to Parent From Non-Guarantor | -57,000,000 | 18,300,000 | 385,108,000 | -490,273,000 | 0 | |
Acquisitions, net of cash acquired | 0 | 0 | 0 | 0 | 0 | |
Proceeds from disposal of business | 0 | 0 | ||||
Other investing activities | 0 | 0 | 0 | 0 | 0 | |
Net cash used in investing activities | -222,300,000 | 13,600,000 | 2,822,970,000 | 1,449,336,000 | -332,763,000 | |
Cash flows from financing activities: | ||||||
Proceeds from issuance of long-term debt | 0 | 0 | 0 | 0 | 0 | |
Payment of long-term debt | 0 | 0 | 0 | 0 | 0 | |
Short-term borrowings: | ||||||
Proceeds | 0 | 0 | 0 | 0 | 0 | |
Payments | 0 | 0 | 0 | 0 | 0 | |
Proceeds under the revolving lines of credit | 0 | 0 | ||||
Payments under the revolving lines of credit | 0 | 0 | ||||
Capital contributions received from parent | -485,700,000 | -2,215,900,000 | -4,267,118,000 | -3,549,088,000 | -1,544,332,000 | |
Loan to Parent From Non-Guarantor | 57,000,000 | -18,300,000 | -385,108,000 | 490,273,000 | ||
Payment of dividends and return of capital | 1,056,300,000 | 2,562,100,000 | 2,604,573,000 | 3,143,395,000 | 2,258,650,000 | |
Proceeds from employee stock purchase plan | 0 | 0 | 0 | 0 | 0 | |
Loan from Hertz Global Holdings, Inc. | 0 | 0 | 0 | 0 | ||
Purchase of noncontrolling interest | 0 | 0 | ||||
Payment of financing costs | 0 | 0 | 0 | 0 | 0 | |
Net cash provided by (used in) financing activities | 627,600,000 | 327,900,000 | -2,047,653,000 | -895,966,000 | 714,318,000 | |
Effect of foreign exchange rate changes on cash and cash equivalents | 0 | 0 | 0 | 0 | 0 | |
Net decrease in cash and cash equivalents during the period | 0 | 0 | 0 | 0 | 0 | |
Cash and cash equivalents at beginning of period | 0 | 0 | 0 | 0 | 0 | 0 |
Cash and cash equivalents at end of period | $0 | $0 | $0 | $0 | $0 |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | Aug. 31, 2012 | Mar. 31, 2011 | Jul. 31, 2013 |
Senior ABL Facility | Senior ABL Facility | ||
Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Aggregate maximum borrowings | $1,950,000,000 | $1,800,000,000 | $1,865,000,000 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||
ASSETS | ||
Cash and cash equivalents | $533,235 | $931,208 |
Restricted cash and cash equivalents | 571,634 | 308,039 |
Receivables, less allowance for doubtful accounts of $25,113 and $20,282 | 1,886,596 | 1,616,382 |
Due from Hertz affiliates | 12,809 | 0 |
Inventories, at lower of cost or market | 105,728 | 83,978 |
Prepaid expenses and other assets | 461,502 | 416,134 |
Revenue earning equipment, at cost: | ||
Cars | 12,591,132 | 9,678,765 |
Less accumulated depreciation | -1,881,030 | -1,360,012 |
Other equipment | 3,240,095 | 2,830,176 |
Less accumulated depreciation | -1,041,861 | -1,043,520 |
Total revenue earning equipment | 12,908,336 | 10,105,409 |
Property and equipment, at cost: | ||
Land, buildings and leasehold improvements | 1,288,833 | 1,146,112 |
Service equipment and other | 1,261,049 | 1,050,915 |
Total property and equipment, at cost | 2,549,882 | 2,197,027 |
Less accumulated depreciation | -1,113,496 | -945,173 |
Total property and equipment | 1,436,386 | 1,251,854 |
Other intangible assets, net | 4,032,111 | 2,562,234 |
Goodwill | 1,341,872 | 392,094 |
Total assets | 23,290,209 | 17,667,332 |
LIABILITIES AND EQUITY | ||
Accounts payable | 999,061 | 897,489 |
Due to Hertz affiliates | 0 | 412 |
Accrued salaries and other compensation | 440,936 | 426,696 |
Other Accrued Liabilities | 737,524 | 699,642 |
Accrued taxes | 167,314 | 162,984 |
Debt | 15,014,474 | 10,907,849 |
Public liability and property damage | 332,232 | 281,534 |
Deferred income tax liability | 2,681,140 | 1,661,872 |
Total liabilities | 20,372,681 | 15,038,478 |
Commitments and contingencies | ||
The Hertz Corporation and Subsidiaries stockholder's equity | ||
Common Stock, $0.01 par value, 3,000 shares authorized, 100 shares issued and outstanding | 0 | 0 |
Additional paid-in capital | 3,509,998 | 3,473,625 |
Accumulated deficit | -565,597 | -816,376 |
Accumulated other comprehensive loss | -26,892 | -28,414 |
Total The Hertz Corporation and Subsidiaries stockholder's equity | 2,917,509 | 2,628,835 |
Noncontrolling interest | 19 | 19 |
Total equity | 2,917,528 | 2,628,854 |
Total liabilities and equity | $23,290,209 | $17,667,332 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, except Share data, unless otherwise specified | |||
Receivables, allowance for doubtful accounts (in dollars) | $26,200 | $25,113 | $20,282 |
Common Stock, par value (in dollars per share) | $0.01 | $0.01 | $0.01 |
Common Stock, shares authorized | 3,000 | 3,000 | 3,000 |
Common Stock, shares issued | 100 | 100 | 100 |
Common Stock, shares outstanding | 100 | 100 | 100 |
CONSOLIDATED_STATEMENTS_OF_OPE1
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||
In Thousands, unless otherwise specified | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Revenues: | ||||||||||||||
Car rental | $2,329,500 | $1,889,600 | $4,414,300 | $3,547,900 | $7,456,111 | $6,929,584 | $6,355,205 | |||||||
Equipment rental | 384,300 | 335,000 | 735,400 | 637,100 | 1,383,196 | 1,208,811 | 1,069,820 | |||||||
Other | 800 | 500 | 1,500 | 1,100 | 181,500 | 159,985 | 137,509 | |||||||
Total revenues | 2,714,600 | 2,318,600 | 2,516,200 | 2,225,100 | 1,960,900 | 2,013,800 | 2,432,300 | 2,072,300 | 1,780,000 | 5,151,200 | 4,186,100 | 9,020,807 | 8,298,380 | 7,562,534 |
Expenses: | ||||||||||||||
Direct operating | 1,405,900 | 1,188,900 | 2,757,100 | 2,303,100 | 4,795,788 | 4,566,378 | 4,283,394 | |||||||
Depreciation of revenue earning equipment and lease charges | 641,100 | 519,800 | 1,228,100 | 1,034,900 | 2,148,158 | 1,905,739 | 1,868,147 | |||||||
Selling, general and administrative | 274,800 | 206,600 | 526,300 | 414,300 | 945,581 | 745,117 | 664,442 | |||||||
Interest expense | 170,200 | 139,300 | 333,500 | 288,800 | 597,788 | 650,254 | 726,539 | |||||||
Interest income | -2,000 | -500 | -3,800 | -1,600 | -4,902 | -5,551 | -12,315 | |||||||
Other (income) expense, net | -1,100 | -600 | -1,700 | -1,000 | 35,542 | 62,548 | 5 | |||||||
Total expenses | 2,488,900 | 2,053,500 | 4,839,500 | 4,038,500 | 8,517,955 | 7,924,485 | 7,530,212 | |||||||
Income before income taxes | 225,700 | -26,900 | 382,100 | 171,700 | -24,000 | 105,400 | 308,200 | 107,000 | -146,700 | 311,700 | 147,600 | 502,852 | 373,895 | 32,322 |
Provision for taxes on income | -95,800 | -70,700 | -155,300 | -94,900 | -227,073 | -143,846 | -33,322 | |||||||
Net income | 129,900 | 100,900 | 52,700 | 156,400 | 275,779 | 230,049 | -1,000 | |||||||
Net Income (Loss) Attributable to Noncontrolling Interest | 0 | -19,560 | -17,383 | |||||||||||
Net income attributable to The Hertz Corporation and Subsidiaries' common stockholder | $129,900 | ($28,300) | $251,300 | $101,000 | ($48,200) | $58,800 | $212,600 | $62,100 | ($123,000) | $156,400 | $52,700 | $275,779 | $210,489 | ($18,383) |
CONSOLIDATED_STATEMENTS_OF_COM2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Net income | $275,779 | $230,049 | ($1,000) |
Other comprehensive income (loss), net of tax: | |||
Translation adjustment changes | 11,358 | -23,545 | -17,213 |
Unrealized holding gains (losses) on securities, (net of tax of 2012: $0; 2011: $125 and 2010: $0) | -318 | 226 | 31 |
Change in fair value of derivatives qualifying as cash flow hedges, (net of tax of 2012: $0; 2011: $0 and 2010: $31,885) | 0 | 0 | 49,759 |
Other, (net of tax of 2012: $0; 2011: $(1,127) and 2010: $0) | 657 | -984 | -19 |
Unrealized gain (loss) on Euro-denominated debt, (net of tax of 2012: $0; 2011: $(8,005) and 2010: $12,656) | 0 | -12,573 | 12,358 |
Defined benefit pension plans | |||
Amortization or settlement of net gain (loss) | 13,694 | -4,021 | 4,073 |
Net loss arising during the period | -30,932 | -40,895 | -8,629 |
Income tax related to defined pension plans | 7,063 | 15,555 | 794 |
Defined benefit pension plans | 10,175 | 29,361 | 3,762 |
Other comprehensive income (loss) | 1,522 | -66,237 | 41,154 |
Comprehensive income | 277,301 | 163,812 | 40,154 |
Less: Comprehensive income attributable to noncontrolling interest | 0 | -19,560 | -17,383 |
Comprehensive income attributable to The Hertz Corporation and Subsidiaries' common stockholder | $277,301 | $144,252 | $22,771 |
CONSOLIDATED_STATEMENTS_OF_COM3
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Unrealized holding gains (losses) on securities, tax | $0 | $125 | $0 |
Derivative Instruments Gain (Loss) Recognized In Other Comprehensive Income Tax | 0 | 0 | 31,885 |
Other Comprehensive Income Other, Tax | 0 | -1,127 | 0 |
Income tax related to defined pension plans | $0 | ($8,005) | $12,656 |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (USD $) | 3 Months Ended | 12 Months Ended | ||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 |
Common Stock, shares issued | 100 | 100 | 100 | 100 | ||
Balance at Period | $2,917,528 | $2,628,854 | $2,917,528 | $2,628,854 | $2,502,429 | $2,461,948 |
Net loss attributable to The Hertz Corporation and Subsidiaries' common stockholder | -28,300 | 58,800 | 275,779 | 210,489 | -18,383 | |
Dividends paid to Hertz Global Holdings, Inc. | -25,000 | -22,950 | -23,000 | |||
Other comprehensive income | 1,522 | -66,237 | 41,154 | |||
Dividend payment to noncontrolling interest | -23,100 | -18,200 | ||||
Net income relating to noncontrolling interest | 19,560 | 17,409 | ||||
Acquisition of remaining portion of non-controlling interest, net of tax of $9,798 | -28,230 | |||||
Stock-based employee compensation charges, net of tax of $0 | 29,855 | 31,093 | 36,560 | |||
Excess tax benefits from exercise of stock options | -258 | |||||
Proceeds from employee stock purchase plan | 5,030 | 4,208 | 3,774 | |||
Hertz Holdings common and phantom shares issued to Directors | 1,488 | 1,592 | 1,425 | |||
Common Stock | ||||||
Common Stock, shares issued | 100 | 100 | 100 | 100 | 100 | |
Balance at Period | 0 | 0 | 0 | 0 | 0 | |
Additional Paid-In Capital | ||||||
Balance at Period | 3,509,998 | 3,473,625 | 3,509,998 | 3,473,625 | 3,452,019 | |
Accumulated Deficit | ||||||
Balance at Period | -565,597 | -816,376 | -565,597 | -816,376 | -1,003,915 | |
Accumulated Other Comprehensive Income (Loss) | ||||||
Balance at Period | -26,892 | -28,414 | -26,892 | -28,414 | 37,823 | |
Non-controlling Interest | ||||||
Balance at Period | 19 | 19 | 19 | 19 | 16,502 | 17,293 |
Dividend payment to noncontrolling interest | -23,100 | -18,200 | ||||
Net income relating to noncontrolling interest | 19,560 | 17,409 | ||||
Acquisition of remaining portion of non-controlling interest, net of tax of $9,798 | ($12,943) |
CONSOLIDATED_STATEMENTS_OF_CHA1
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY AND COMPREHENSIVE INCOME | |||
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests, Tax Effect | $0 | $9,798 | $0 |
Adjustment to Additional Paid in Capital, Income Tax Effect from Share-based Compensation, Net | 399 | 0 | 0 |
Income Tax Effects Allocated Directly to Equity, Employee Stock Options | 0 | 474 | -258 |
Proceeds from disgorgement of stockholder short-swing profits, tax | $6 | $29 | $3 |
CONSOLIDATED_STATEMENTS_OF_CAS1
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Cash flows from operating activities: | |||
Net income | $275,779 | $230,049 | ($1,000) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation of revenue earning equipment | 2,068,378 | 1,809,609 | 1,789,903 |
Depreciation of property and equipment | 172,582 | 158,009 | 154,031 |
Amortization of other intangible assets | 84,096 | 70,039 | 64,713 |
Amortization and write-off of deferred financing costs | 51,835 | 89,909 | 70,825 |
Amortization and write-off of debt discount | 3,987 | 15,948 | 20,968 |
Stock-based compensation charges | 30,255 | 31,093 | 36,560 |
Gain (loss) on derivatives | 4,326 | -7,990 | 10,810 |
Gain on disposal of business | 46,346 | 0 | 0 |
Loss on revaluation of foreign denominated debt | 2,498 | -26,641 | 0 |
Gain (Loss) on Interest Rate Cash Flow Hedge Ineffectiveness | 0 | 0 | 68,815 |
Provision for losses on doubtful accounts | 34,144 | 28,164 | 19,667 |
Asset writedowns | 0 | 23,174 | 20,448 |
Deferred Income Tax Noncash Expense (Benefit) | 136,838 | 73,720 | -19,877 |
Gain on sale of property and equipment | -8,309 | -43,520 | -5,740 |
Derivative Instruments, Gain (Loss) Recognized in Income, Net | -8,470 | 0 | 0 |
Changes in assets and liabilities, net of effects of acquisition: | |||
Receivables | -157,732 | -79,851 | -3,145 |
Inventories, prepaid expenses and other assets | -25,514 | 543 | -61,871 |
Accounts payable | 49,896 | -1,139 | 119,054 |
Accrued liabilities | -22,513 | -144,088 | -53,457 |
Accrued taxes | 14,331 | 24,901 | 10,281 |
Public liability and property damage | -4,341 | 6,592 | -3,058 |
Net cash provided by operating activities | 2,748,412 | 2,258,521 | 2,237,927 |
Cash flows from investing activities: | |||
Net change in restricted cash and cash equivalents | -261,605 | -101,766 | 160,516 |
Revenue earning equipment expenditures | -9,613,239 | -9,454,311 | -8,440,872 |
Proceeds from disposal of revenue earning equipment | 7,125,096 | 7,850,442 | 7,518,446 |
Property and equipment expenditures | -312,786 | -281,695 | -179,209 |
Proceeds from disposal of property and equipment | 137,694 | 53,814 | 38,905 |
Acquisitions, net of cash acquired | -1,905,168 | -227,081 | -47,571 |
Purchase of short-term investments, net | 0 | -32,891 | 3,491 |
Proceeds from disposal of business | 84,497 | 0 | 0 |
Other investing activities | -1,779 | 586 | 2,726 |
Net cash used in investing activities | -4,747,290 | -2,192,902 | -943,568 |
Cash flows from financing activities: | |||
Proceeds from issuance of long-term debt | 2,237,280 | 3,062,479 | 2,635,713 |
Payment of long-term debt | -952,144 | -3,649,300 | -2,954,233 |
Short-term borrowings: | |||
Proceeds | 438,387 | 460,890 | 490,490 |
Payments | -1,280,143 | -1,194,056 | -970,949 |
Proceeds (payments) under the revolving lines of credit, net | 1,273,164 | -57,329 | 1,026,070 |
Distributions to noncontrolling interest | 0 | -23,100 | -18,200 |
Purchase of noncontrolling interest | -38,000 | 0 | 0 |
Proceeds from employee stock purchase plan | 4,275 | 3,577 | 3,208 |
Loan with Hertz Global Holdings, Inc. | -13,220 | -984 | -6,173 |
Excess Tax Benefit (Tax Deficiency) from Share-based Compensation, Financing Activities | 0 | 0 | -258 |
Payment of financing costs | -49,433 | -91,482 | -78,151 |
Dividends paid | -25,000 | -22,950 | -23,000 |
Net cash provided by (used in) financing activities | 1,595,166 | -1,512,255 | 104,517 |
Effect of foreign exchange rate changes on cash and cash equivalents | 5,739 | 3,838 | -10,337 |
Net decrease in cash and cash equivalents during the period | -397,973 | -1,442,798 | 1,388,539 |
Cash and cash equivalents at beginning of period | 931,208 | 2,374,006 | 985,467 |
Cash and cash equivalents at end of period | 533,235 | 931,208 | 2,374,006 |
Cash paid during the period for: | |||
Interest (net of amounts capitalized) | 535,130 | 615,730 | 508,183 |
Income taxes | 71,661 | 49,557 | 50,688 |
Supplemental dislcosure fo non-cash flow information [Abstract] | |||
Purchases of revenue earning equipment included in accounts payable and accrued liabilities | 249,605 | 153,634 | 266,354 |
Sales of revenue earning equipment included in receivables | 617,267 | 620,724 | 504,217 |
Purchases of property and equipment included in accounts payable | 34,996 | 53,263 | 37,379 |
Sales of property and equipment included in receivables | 895 | 41,809 | 11,071 |
Purchase of Noncontrolling Interest | $0 | $38,000 | $0 |
Background1
Background | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2013 | Dec. 31, 2012 | ||
Background | |||
Background | Background | Background | |
The Hertz Corporation together with its subsidiaries, including Dollar Thrifty Automotive Group, Inc., or "Dollar Thrifty," are referred to herein as ‘‘we,’’ ‘‘our’’ and ‘‘us.’’ The Hertz Corporation is referred to herein as ‘‘Hertz,’’ 100% of Hertz outstanding capital stock is owned by Hertz Investors, Inc., and 100% of Hertz Investors, Inc.'s capital stock is owned by Hertz Holdings. | The Hertz Corporation together with its subsidiaries are referred to herein as “we,” “our” and “us.” The Hertz Corporation is referred to herein as “Hertz,” 100% of Hertz outstanding capital stock is owned by Hertz Investors, Inc. (previously CCMG Corporation), and 100% of Hertz Investors, Inc.'s capital stock is owned by Hertz Holdings (previously known as CCMG Holdings, Inc.). | ||
We operate our car rental business through the Hertz, Dollar and Thrifty brands from corporate, licensee and franchisee locations in North America, Europe, Latin America, Asia, Australia, Africa, the Middle East and New Zealand and our equipment rental business our equipment rental business segment, we rent equipment through in the United States, Canada, France, Spain, China and Saudi Arabia, as well as through our international licensees. We and our predecessors have been in the car rental business since 1918 and in the equipment rental business since 1965. We also own Donlen Corporation, or "Donlen," based in Northbrook, Illinois, which is a leader in providing fleet leasing and management services. | We are a successor to corporations that have been engaged in the car and truck rental and leasing business since 1918 and the equipment rental business since 1965. Hertz was incorporated in Delaware in 1967. Ford Motor Company acquired an ownership interest in Hertz in 1987. Prior to this, Hertz was a subsidiary of United Continental Holdings, Inc. (formerly Allegis Corporation), which acquired our outstanding capital stock from RCA Corporation in 1985. | ||
On November 19, 2012, Hertz completed the acquisition of Dollar Thrifty, a car rental business. On December 12, 2012, Hertz completed the sale of Simply Wheelz LLC, a wholly owned subsidiary of Hertz that operated our Advantage Rent A Car business. See Note 5—Business Combinations and Divestitures. | On December 21, 2005, investment funds associated with or designated by: | ||
In May 2013, we announced plans to relocate our worldwide headquarters to Estero, Florida from Park Ridge, New Jersey over a two-year period. | |||
• | Clayton, Dubilier & Rice, Inc., which was succeeded by Clayton, Dubilier & Rice, LLC, or “CD&R,” | ||
• | The Carlyle Group, or “Carlyle,” and | ||
• | Merrill Lynch & Co., Inc., or "Merrill Lynch," | ||
or collectively the “Sponsors,” acquired all of our common stock from Ford Holdings LLC. We refer to the acquisition of all of our common stock by the Sponsors as the “Acquisition.” | |||
In January 2009, Bank of America Corporation, or “Bank of America,” acquired Merrill Lynch. Accordingly, Bank of America is now an indirect beneficial owner of Hertz Holdings' common stock held by Merrill Lynch and certain other investment funds and affiliates of Merrill Lynch. | |||
On September 1, 2011, Hertz completed the acquisition of Donlen Corporation, or "Donlen," a leading provider of fleet leasing and management services. See Note 4—Business Combinations and Divestitures. | |||
In December 2011, Hertz purchased the noncontrolling interest of Navigation Solutions, L.L.C., thereby increasing its ownership interest from 65% to 100%. | |||
On November 19, 2012, Hertz completed the acquisition of Dollar Thrifty Automotive Group, Inc., or "Dollar Thrifty," a car and truck rental and leasing business. See Note 4—Business Combinations and Divestitures. | |||
On December 12, 2012, Hertz completed the sale of Simply Wheelz LLC, a wholly owned subsidiary of Hertz that operated our Advantage Rent A Car business. See Note 4—Business Combinations and Divestitures. | |||
In December 2012, the Sponsors sold 50,000,000 shares of their Hertz Holdings common stock to J.P. Morgan as the sole underwriter in the registered public offering of those shares. | |||
As a result of Hertz Holdings' initial public offering in November 2006 and subsequent offerings in June 2007, May 2009, June 2009, March 2011 and December 2012, the Sponsors reduced their holdings to approximately 26% of the outstanding shares of common stock of Hertz Holdings. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |
Dec. 31, 2012 | ||
Summary of Significant Accounting Policies | ||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies | |
Principles of Consolidation | ||
The consolidated financial statements include the accounts of Hertz Holdings and our wholly owned and majority owned domestic and international subsidiaries. In the event that Hertz Holdings is a primary beneficiary of a variable interest entity, the assets, liabilities, and results of operations of the variable interest entity will be included in our consolidated financial statements. All significant intercompany transactions have been eliminated in consolidation. | ||
Use of Estimates and Assumptions | ||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America, or “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, reserves for litigation and other contingencies, accounting for income taxes and related uncertain tax positions, pension and postretirement benefit costs, the fair value of assets and liabilities acquired in business combinations, the recoverability of long-lived assets, useful lives and impairment of long-lived tangible and intangible assets including goodwill, valuation of stock based compensation, public liability and property damage reserves, reserves for restructuring, allowance for doubtful accounts, and fair value of derivatives, among others. | ||
Reclassifications | ||
Certain prior period amounts have been reclassified to conform with current year presentation. | ||
Acquisition Accounting | ||
We account for business combinations using the acquisition method, which requires an allocation of the purchase price of an acquired entity to the assets acquired and liabilities assumed based on their estimated fair values at the date of acquisition. Goodwill represents the excess of the purchase price over the net tangible and intangible assets acquired. | ||
Revenue Recognition | ||
Rental and rental related revenue (including cost reimbursements from customers where we consider ourselves to be the principal versus an agent) are recognized over the period the revenue earning equipment is rented or leased based on the terms of the rental or leasing contract. Maintenance management administrative fees are recognized monthly and maintenance management service revenue is recognized when services are performed. Revenue related to new equipment sales and consumables is recognized at the time of delivery to, or pick-up by, the customer and when collectability is reasonably assured. Fees from our licensees are recognized over the period the underlying licensees' revenue is earned (over the period the licensees' revenue earning equipment is rented). Certain truck and equipment leases are originated with the intention of syndicating to banks, and upon the sale of rights to these direct financing leases, the net gain is recorded in revenue. | ||
Sales tax amounts collected from customers have been recorded on a net basis. | ||
Cash and Cash Equivalents and Other | ||
We consider all highly liquid debt instruments purchased with an original maturity of three months or less to be cash equivalents. | ||
In our consolidated statements of cash flows, we net cash flows from revolving borrowings in the line item “Proceeds (payments) under the revolving lines of credit, net.” The contractual maturities of such borrowings may exceed 90 days in certain cases. | ||
Restricted Cash and Cash Equivalents | ||
Restricted cash and cash equivalents includes cash and cash equivalents that are not readily available for our normal disbursements. Restricted cash and cash equivalents are restricted for the purchase of revenue earning vehicles and other specified uses under our Fleet Debt facilities, for our Like-Kind Exchange Program, or “LKE Program,” and to satisfy certain of our self-insurance regulatory reserve requirements. These funds are primarily held in highly rated money market funds with investments primarily in government and corporate obligations. Restricted cash and cash equivalents are excluded from cash and cash equivalents. | ||
Concentration of Credit Risk | ||
Our cash and cash equivalents are invested in various investment grade institutional money market accounts and 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. We seek to mitigate such risks by spreading the risk across multiple counterparties and monitoring the risk profiles of these counterparties. In addition, we have credit risk from derivative financial instruments used in hedging activities. We limit our exposure relating to derivative financial instruments by diversifying the financial instruments among various counterparties, which consist of major financial institutions. | ||
Receivables | ||
Receivables are stated net of allowances for doubtful accounts and represent credit extended to manufacturers and customers that satisfy defined credit criteria. The estimate of the allowance for doubtful accounts is based on our historical experience and our judgment as to the likelihood of ultimate payment. Actual receivables are written-off against the allowance for doubtful accounts when we determine the balance will not be collected. Bad debt expense is reflected as a component of "Selling, general and administrative" in our consolidated statements of operations. | ||
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 | 3 to 50 years | |
Furniture and fixtures | 1 to 15 years | |
Capitalized internal use software | 1 to 15 years | |
Service cars and service equipment | 1 to 13 years | |
Other intangible assets | 3 to 20 years | |
Leasehold improvements | The shorter of their economic lives or the lease term | |
We follow the practice of charging maintenance and repairs, including the cost of minor replacements, to maintenance expense accounts. Costs of major replacements of units of property are capitalized to property and equipment accounts and depreciated on the basis indicated above. Gains and losses on dispositions of property and equipment are included in income as realized. During the years ended December 31, 2012 and 2011, gains from the dispositions of property and equipment of $6.3 million and $43.1 million, respectively, were included in "Direct operating" in our consolidated statements of operations. | ||
Revenue Earning Equipment | ||
Revenue earning equipment is stated at cost, net of related discounts. Useful lives are as follows: | ||
Cars | 4 to 28 months | |
Other equipment | 24 to 108 months | |
Generally, when revenue earning equipment is acquired, we estimate the period that we will hold the asset, primarily based on historical measures of the amount of rental activity (e.g., automobile mileage and equipment usage) and the targeted age of equipment at the time of disposal. We also estimate the residual value of the applicable revenue earning equipment at the expected time of disposal. The residual values for rental vehicles are affected by many factors, including make, model and options, age, physical condition, mileage, sale location, time of the year and channel of disposition (e.g., auction, retail, dealer direct). The residual value for rental equipment is affected by factors which include equipment age and amount of usage. Depreciation is recorded on a straight-line basis 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 vehicle and equipment sales can also be affected by external factors such as the economy, natural disasters, fuel prices and incentives offered by manufacturers of new cars. These key factors are considered when estimating future residual values and assessing depreciation rates. As a result of this ongoing assessment, we make periodic adjustments to depreciation rates of revenue earning equipment in response to changed market conditions. Upon disposal of revenue earning equipment, depreciation expense is adjusted for the difference between the net proceeds received and the remaining net book value. | ||
Within Donlen, revenue earning equipment is under longer term lease agreements with our customers. These leases contain provisions whereby we have a contracted residual value guaranteed to us by the lessee, such that we do not experience any gains or losses on the disposal of these vehicles. Therefore depreciation rates on these vehicles are not adjusted at any point in time per the associated lease contract. | ||
Environmental Liabilities | ||
The use of automobiles and other vehicles is subject to various governmental controls designed to limit environmental damage, including that caused by emissions and noise. Generally, these controls are met by the manufacturer, except in the case of occasional equipment failure requiring repair by us. To comply with environmental regulations, measures are taken at certain locations to reduce the loss of vapor during the fueling process and to maintain, upgrade and replace underground fuel storage tanks. We also incur and provide for expenses for the cleanup of petroleum discharges and other alleged violations of environmental laws arising from the disposition of waste products. We do not believe that we will be required to make any material capital expenditures for environmental control facilities or to make any other material expenditures to meet the requirements of governmental authorities in this area. Liabilities for these expenditures are recorded at undiscounted amounts when it is probable that obligations have been incurred and the amounts can be reasonably estimated. | ||
Public Liability and Property Damage | ||
The obligation for public liability and property damage on self-insured U.S. and international vehicles and 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 our estimates change or if actual results differ from these assumptions, the amount of the recorded liability is adjusted to reflect these results. | ||
Pension Benefit Obligations | ||
Our 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. Actual results that differ from our assumptions are accumulated and amortized over future periods and, therefore, generally affect our recognized expense in such future periods. While we believe that the assumptions used are appropriate, significant differences in actual experience or significant changes in assumptions would affect our pension costs and obligations. | ||
Foreign Currency Translation and Transactions | ||
Assets and liabilities of international subsidiaries are translated at the rate of exchange in effect on the balance sheet date; income and expenses are translated at the average rate of exchange prevailing during the year. The related translation adjustments are reflected in “Accumulated other comprehensive loss” in the equity section of our consolidated balance sheets. As of December 31, 2012 and 2011, the accumulated foreign currency translation gain was $102.7 million and $91.3 million, respectively. Foreign currency gains and losses resulting from transactions are included in earnings. | ||
Derivative Instruments | ||
We are exposed to a variety of market risks, including the effects of changes in interest rates, gasoline and diesel fuel prices and foreign currency exchange rates. We manage our exposure to these market risks through our regular operating and financing activities and, when deemed appropriate, through the use of derivative financial instruments. Derivative financial instruments are viewed as risk management tools and have not been used for speculative or trading purposes. In addition, derivative financial instruments are entered into with a diversified group of major financial institutions in order to manage our exposure to counterparty nonperformance on such instruments. We account for all derivatives in accordance with GAAP, which requires that all derivatives be recorded on the balance sheet as either assets or liabilities measured at their fair value. The effective portion of changes in fair value of derivatives designated as cash flow hedging instruments is recorded as a component of other comprehensive income. The ineffective portion is recognized currently in earnings within the same line item as the hedged item, based upon the nature of the hedged item. For derivative instruments that are not part of a qualified hedging relationship, the changes in their fair value are recognized currently in earnings. See Note 14—Financial Instruments. | ||
Income Taxes | ||
Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates is recognized in the statement of operations in the period that includes the enactment date. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not 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 change to reflect tax on these amounts. See Note 9—Taxes on Income. | ||
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” in our consolidated statements of operations and for the years ended December 31, 2012, 2011 and 2010 were $158.0 million, $145.8 million and $133.8 million, respectively. | ||
Goodwill | ||
Goodwill is not amortized but is subject to periodic testing for impairment in accordance with Financial Accounting Standards Board, or "FASB," Accounting Standards Codification, or "ASC," Topic 350, “Intangibles—Goodwill and Other,” or “ASC 350,” at the reporting unit level which is one level below our operating segments. The assessment of goodwill impairment is conducted by estimating and comparing the fair value of our reporting units, as defined in ASC 350, to their carrying value as of that date. The fair value is estimated using an income approach whereby the fair value of the reporting unit is based on the future cash flows that each reporting unit's assets can be expected to generate. Future cash flows are based on forward-looking information regarding market share and costs for each reporting unit and are discounted using an appropriate discount rate. Future discounted cash flows can be affected by changes in industry or market conditions or the rate and extent to which anticipated synergies or cost savings are realized with newly acquired entities. The test for impairment is conducted annually each October 1st, and more frequently if events occur or circumstances change that indicate that the fair value of a reporting unit may be below its carrying amount. | ||
Intangible and Long-lived Assets | ||
Intangible assets include concession agreements, technology, customer relationships, trademarks and 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 two to fifteen 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 in accordance with FASB ASC Topic 360, “Property, Plant, and Equipment,” or “ASC 360.” 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. Intangible assets determined to have indefinite useful lives are not amortized but are tested for impairment annually each October 1st and more frequently if events occur or circumstances change that indicate an asset may be impaired. | ||
Stock‑Based Compensation | ||
We measure 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 to be recognized over the period during which the employee is required to provide service in exchange for the award. We have 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 life, dividend yield and risk-free interest rate. See Note 7-Stock‑Based Compensation. | ||
We are using equity accounting for restricted stock unit and performance stock unit 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 a performance condition. For performance stock units, we re-assess the probability of achieving the applicable performance condition each reporting period and adjust the recognition of expense accordingly. The performance condition is not considered in determining the grant date fair value. | ||
Franchise Revenues and Transactions | ||
“Franchise revenues” includes franchise fees for use of our brands and services. Generally franchise fees from franchised locations are based on a percentage of net sales of the franchised business and are recognized as earned and when collectability is reasonably assured. | ||
Initial franchise fees are recorded as deferred income when received and are recognized as revenue when all material services and conditions related to the franchise fee have been substantially performed. | ||
Renewal franchise fees are recognized as revenue when the license agreements are effective and collectability is reasonably assured. | ||
Other (income) expense, net includes the gains or losses from the sales of our operations or assets to new and existing franchisees. Such gains or losses are included in operating income because they are expected to be a recurring part of our business. | ||
Recently Issued Accounting Pronouncements | ||
In December 2011, the FASB issued Accounting Standards Update, or "ASU," No. 2011-11, "Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities," or "ASU 2011-11" to amend the requirement for an entity to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. An entity should provide the disclosures required by those amendments retrospectively for all comparative periods presented. ASU 2011-11 is effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. We plan to adopt ASU 2011-11 on January 1, 2013, as required, but do not believe this guidance will have a significant impact on our consolidated financial statements or financial statement disclosures. | ||
In July 2012, the FASB issued ASU No. 2012-02, "Intangibles—Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment," or "ASU 2012-02" which states that an entity has the option first to assess qualitative factors to determine whether the existence of events and circumstances indicates that it is more likely than not that an indefinite-lived intangible asset is impaired. If, after assessing the totality of events and circumstances, an entity concludes that it is not more likely than not that the indefinite-lived intangible asset is impaired, then the entity is not required to take further action. However, if an entity concludes otherwise, then it is required to determine the fair value of the indefinite-lived intangible asset and perform the quantitative impairment test by comparing the fair value with the carrying amount. This provision is effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. This accounting guidance is not expected to have a material impact on our consolidated financial statements or financial statement disclosures. | ||
In February 2013, the FASB issued ASU No. 2013-02, "Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income," or "ASU 2013-02" which requires disclosure of significant amounts reclassified out of accumulated other comprehensive income by component and their corresponding effect on the respective line items of net income. This guidance is effective for reporting periods beginning after December 15, 2012 and is not expected to have a material impact on our consolidated financial statements or financial statement disclosures. |
Goodwill_and_Other_Intangible_4
Goodwill and Other Intangible Assets | 6 Months Ended | 12 Months Ended | ||||||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | |||||||||||||||||||||||
Goodwill and Other Intangible Assets | ||||||||||||||||||||||||
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets | ||||||||||||||||||||||
The following summarizes the changes in our goodwill, by segment (in millions of dollars): | We account for our goodwill and indefinite-lived intangible assets under ASC 350. Under ASC 350, goodwill impairment is deemed to exist if the carrying value of goodwill exceeds its fair value. In addition, ASC 350 requires that goodwill be tested at least annually using a two-step process. The first step is to identify any potential impairment by comparing the carrying value of the reporting unit to its fair value. We estimate the fair value of our reporting units using a discounted cash flow methodology. The cash flows represent management’s most recent planning assumptions. These assumptions are based on a combination of industry outlooks, views on general economic conditions, our expected pricing plans and expected future savings generated by our ongoing restructuring activities. If a potential impairment is identified, the second step is to compare the implied fair value of goodwill with its carrying amount to measure the impairment loss. Those intangible assets considered to have indefinite useful lives, including our trade name, are evaluated for impairment on an annual basis, by comparing the fair value of the intangible assets to their carrying value. In addition, whenever events or changes in circumstances indicate that the carrying value of intangible assets might not be recoverable, we will perform an impairment review. We estimate the fair value of our indefinite lived intangible assets using the relief from royalty method. Intangible assets with finite useful lives are amortized over their respective estimated useful lives and reviewed for impairment in accordance with ASC 360-10, "Impairment and Disposal of Long-Lived Assets." | |||||||||||||||||||||||
At October 1, 2012, 2011 and 2010, we performed our annual goodwill impairment test and determined that the respective book values of our reporting units did not exceed their estimated fair values and therefore no impairment existed for the years ended December 31, 2012, 2011 and 2010. | ||||||||||||||||||||||||
The following summarizes the changes in our goodwill, by segment (in millions of dollars): | ||||||||||||||||||||||||
Car Rental | Equipment | Total | ||||||||||||||||||||||
Rental | ||||||||||||||||||||||||
Balance as of January 1, 2013 | Car Rental | Equipment | Total | |||||||||||||||||||||
Goodwill | $ | 1,287.50 | $ | 775.4 | $ | 2,062.90 | Rental | |||||||||||||||||
Balance as of January 1, 2012 | ||||||||||||||||||||||||
Accumulated impairment losses | (46.1 | ) | (674.9 | ) | (721.0 | ) | Goodwill | $ | 419.3 | $ | 693.8 | $ | 1,113.10 | |||||||||||
1,241.40 | 100.5 | 1,341.90 | ||||||||||||||||||||||
Accumulated impairment losses | (46.1 | ) | (674.9 | ) | (721.0 | ) | ||||||||||||||||||
373.2 | 18.9 | 392.1 | ||||||||||||||||||||||
Goodwill acquired during the period | 9.4 | — | 9.4 | |||||||||||||||||||||
Adjustments to previously recorded purchase price allocation(a) | 15 | 1.7 | 16.7 | Goodwill acquired during the year | 884.9 | 82 | 966.9 | |||||||||||||||||
Other changes during the period(b) | (1.6 | ) | (0.1 | ) | (1.7 | ) | Adjustments to previously recorded purchase price allocation(a) | (15.3 | ) | — | (15.3 | ) | ||||||||||||
22.8 | 1.6 | 24.4 | ||||||||||||||||||||||
Other changes during the year(b) | (1.4 | ) | (0.4 | ) | (1.8 | ) | ||||||||||||||||||
868.2 | 81.6 | 949.8 | ||||||||||||||||||||||
Balance as of June 30, 2013 | ||||||||||||||||||||||||
Goodwill | 1,310.30 | 777 | 2,087.30 | |||||||||||||||||||||
Balance as of December 31, 2012 | ||||||||||||||||||||||||
Accumulated impairment losses | (46.1 | ) | (674.9 | ) | (721.0 | ) | Goodwill | 1,287.50 | 775.4 | 2,062.90 | ||||||||||||||
$ | 1,264.20 | $ | 102.1 | $ | 1,366.30 | |||||||||||||||||||
Accumulated impairment losses | (46.1 | ) | (674.9 | ) | (721.0 | ) | ||||||||||||||||||
$ | 1,241.40 | $ | 100.5 | $ | 1,341.90 | |||||||||||||||||||
Car Rental | Equipment | Total | ||||||||||||||||||||||
Rental | ||||||||||||||||||||||||
Balance as of January 1, 2012 | Car Rental | Equipment | Total | |||||||||||||||||||||
Goodwill | $ | 419.3 | $ | 693.8 | $ | 1,113.10 | Rental | |||||||||||||||||
Balance as of January 1, 2011 | ||||||||||||||||||||||||
Accumulated impairment losses | (46.1 | ) | (674.9 | ) | (721.0 | ) | Goodwill | $ | 367.9 | $ | 681.7 | $ | 1,049.60 | |||||||||||
373.2 | 18.9 | 392.1 | ||||||||||||||||||||||
Accumulated impairment losses | (46.1 | ) | (674.9 | ) | (721.0 | ) | ||||||||||||||||||
321.8 | 6.8 | 328.6 | ||||||||||||||||||||||
Goodwill acquired during the year | 884.9 | 82 | 966.9 | |||||||||||||||||||||
Adjustments to previously recorded purchase price allocation(c) | (15.3 | ) | — | (15.3 | ) | Goodwill acquired during the year | 53.1 | 12.3 | 65.4 | |||||||||||||||
Other changes during the year(d) | (1.4 | ) | (0.4 | ) | (1.8 | ) | Adjustments to previously recorded purchase price allocation | (0.9 | ) | (0.1 | ) | (1.0 | ) | |||||||||||
868.2 | 81.6 | 949.8 | Other changes during the year(b) | (0.8 | ) | (0.1 | ) | (0.9 | ) | |||||||||||||||
51.4 | 12.1 | 63.5 | ||||||||||||||||||||||
Balance as of December 31, 2012 | ||||||||||||||||||||||||
Goodwill | 1,287.50 | 775.4 | 2,062.90 | Balance as of December 31, 2011 | ||||||||||||||||||||
Goodwill | 419.3 | 693.8 | 1,113.10 | |||||||||||||||||||||
Accumulated impairment losses | (46.1 | ) | (674.9 | ) | (721.0 | ) | ||||||||||||||||||
$ | 1,241.40 | $ | 100.5 | $ | 1,341.90 | Accumulated impairment losses | (46.1 | ) | (674.9 | ) | (721.0 | ) | ||||||||||||
$ | 373.2 | $ | 18.9 | $ | 392.1 | |||||||||||||||||||
_______________________________________________________________________________ | ||||||||||||||||||||||||
_______________________________________________________________________________ | ||||||||||||||||||||||||
(a) | Consists of adjustments related to purchase accounting and deferred tax during 2013. | |||||||||||||||||||||||
(a) | Consists of deferred tax adjustments recorded during 2012. | |||||||||||||||||||||||
(b) | Primarily consists of changes resulting from the translation of foreign currencies at different exchange rates from the beginning of the period to the end of the period. | |||||||||||||||||||||||
(b) | Primarily consists of changes resulting from disposals and the translation of foreign currencies at different exchange rates from the beginning of the period to the end of the period. | |||||||||||||||||||||||
(c) | Consists of deferred tax adjustments recorded during 2012. | Other intangible assets, net, consisted of the following major classes (in millions of dollars): | ||||||||||||||||||||||
(d) | Primarily consists of changes resulting from disposals and the translation of foreign currencies at different exchange rates from the beginning of the year to the end of the year. | |||||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||
Other intangible assets, net, consisted of the following major classes (in millions of dollars): | Gross | Accumulated | Net | |||||||||||||||||||||
Carrying | Amortization | Carrying | ||||||||||||||||||||||
Amount | Value | |||||||||||||||||||||||
30-Jun-13 | Amortizable intangible assets: | |||||||||||||||||||||||
Gross | Accumulated | Net | Customer-related | $ | 694.7 | $ | (434.0 | ) | $ | 260.7 | ||||||||||||||
Carrying | Amortization | Carrying | ||||||||||||||||||||||
Amount | Value | Other(1) | 459.6 | (33.8 | ) | 425.8 | ||||||||||||||||||
Amortizable intangible assets: | ||||||||||||||||||||||||
Customer-related | $ | 694.6 | $ | (468.5 | ) | $ | 226.1 | Total | 1,154.30 | (467.8 | ) | 686.5 | ||||||||||||
Other(1) | 454 | (59.8 | ) | 394.2 | Indefinite-lived intangible assets: | |||||||||||||||||||
Trade name | 3,330.00 | — | 3,330.00 | |||||||||||||||||||||
Total | 1,148.60 | (528.3 | ) | 620.3 | ||||||||||||||||||||
Other(3) | 15.6 | — | 15.6 | |||||||||||||||||||||
Indefinite-lived intangible assets: | ||||||||||||||||||||||||
Trade name | 3,330.00 | — | 3,330.00 | Total | 3,345.60 | — | 3,345.60 | |||||||||||||||||
Other(2) | 18.2 | — | 18.2 | Total other intangible assets, net | $ | 4,499.90 | $ | (467.8 | ) | $ | 4,032.10 | |||||||||||||
Total | 3,348.20 | — | 3,348.20 | |||||||||||||||||||||
Total other intangible assets, net | $ | 4,496.80 | $ | (528.3 | ) | $ | 3,968.50 | |||||||||||||||||
31-Dec-11 | ||||||||||||||||||||||||
Gross | Accumulated | Net | ||||||||||||||||||||||
Carrying | Amortization | Carrying | ||||||||||||||||||||||
Amount | Value | |||||||||||||||||||||||
31-Dec-12 | Amortizable intangible assets: | |||||||||||||||||||||||
Gross | Accumulated | Net | Customer-related | $ | 672.6 | $ | (365.5 | ) | $ | 307.1 | ||||||||||||||
Carrying | Amortization | Carrying | ||||||||||||||||||||||
Amount | Value | Other(2) | 74.7 | (27.8 | ) | 46.9 | ||||||||||||||||||
Amortizable intangible assets: | ||||||||||||||||||||||||
Customer-related | $ | 694.7 | $ | (434.0 | ) | $ | 260.7 | Total | 747.3 | (393.3 | ) | 354 | ||||||||||||
Other(1) | 459.6 | (33.8 | ) | 425.8 | Indefinite-lived intangible assets: | |||||||||||||||||||
Trade name | 2,190.00 | — | 2,190.00 | |||||||||||||||||||||
Total | 1,154.30 | (467.8 | ) | 686.5 | ||||||||||||||||||||
Other(3) | 18.2 | — | 18.2 | |||||||||||||||||||||
Indefinite-lived intangible assets: | ||||||||||||||||||||||||
Trade name | 3,330.00 | — | 3,330.00 | Total | 2,208.20 | — | 2,208.20 | |||||||||||||||||
Other(2) | 15.6 | — | 15.6 | Total other intangible assets, net | $ | 2,955.50 | $ | (393.3 | ) | $ | 2,562.20 | |||||||||||||
Total | 3,345.60 | — | 3,345.60 | _______________________________________________________________________________ | ||||||||||||||||||||
Total other intangible assets, net | $ | 4,499.90 | $ | (467.8 | ) | $ | 4,032.10 | -1 | Other amortizable intangible assets primarily include Dollar Thrifty concession agreements, Donlen trade name, reacquired franchise rights, non-compete agreements and technology-related intangibles. | |||||||||||||||
_______________________________________________________________________________ | -2 | Other amortizable intangible assets primarily consisted of our Advantage trade name and concession rights, Donlen trade name, reacquired franchise rights, non-compete agreements and technology-related intangibles. | ||||||||||||||||||||||
-1 | Other amortizable intangible assets primarily include Dollar Thrifty concession agreements, Donlen trade name, reacquired franchise rights, non-compete agreements and technology-related intangibles. | -3 | Other indefinite-lived intangible assets primarily consist of reacquired franchise rights. | |||||||||||||||||||||
-2 | Other indefinite-lived intangible assets primarily consist of reacquired franchise rights. | 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. Intangible assets determined to have indefinite useful lives are not amortized but are tested for impairment annually, or more frequently if events or changes in circumstances indicate the asset may be impaired. | ||||||||||||||||||||||
Amortization of other intangible assets for the three months ended June 30, 2013 and 2012 was approximately $30.2 million and $19.8 million, respectively. Amortization of other intangible assets for the six months ended June 30, 2013 and 2012 was approximately $60.7 million and $39.0 million, respectively. Based on our amortizable intangible assets as of June 30, 2013, we expect amortization expense to be approximately $60.0 million for the remainder of 2013, $116.4 million in 2014, $113.9 million in 2015, $64.9 million in 2016 and $51.8 million in 2017. | Generally, our trademarks and trade names are expected to generate cash flows indefinitely. Consequently, these assets were classified as indefinite-lived intangibles and accordingly are not amortized but reviewed for impairment annually, or sooner under certain circumstances. Prior to the goodwill testing discussed above, we tested our intangible assets with indefinite lives. The test for impairment requires us to compare the fair value of our indefinite-lived intangible assets to the carrying value of those assets. In situations where the carrying value exceeds the fair value of the intangible asset, an impairment loss equal to the difference is recognized. We estimate the fair value of our indefinite-lived intangible assets using an income approach; specifically, based on discounted cash flows. | |||||||||||||||||||||||
December 31, 2012, 2011 and 2010 | ||||||||||||||||||||||||
At October 1, 2012, 2011 and 2010, we performed our annual test of recoverability of indefinite-lived intangible assets. We determined that the respective book values of our indefinite-lived intangible assets did not exceed their estimated fair values and therefore no impairment existed. | ||||||||||||||||||||||||
Amortization of other intangible assets for the years ended December 31, 2012, 2011 and 2010 was approximately $84.1 million, $70.0 million and $64.7 million, respectively. Based on our amortizable intangible assets as of December 31, 2012, we expect amortization expense to be approximately $120.5 million in 2013, $116.1 million in 2014, $113.7 million in 2015, $64.8 million in 2016 and $51.8 million in 2017. |
Business_Combinations_and_Dive3
Business Combinations and Divestitures | 12 Months Ended | |||||||
Dec. 31, 2012 | ||||||||
Business Combinations and Divestitures | ||||||||
Business Combination Disclosure | Business Combinations and Divestitures | |||||||
Dollar Thrifty Acquisition | ||||||||
On November 19, 2012, Hertz Holdings completed the Dollar Thrifty acquisition pursuant to the terms of the Merger Agreement with Dollar Thrifty and Merger Sub, a wholly owned Hertz subsidiary. In accordance with the terms of the Merger Agreement, Merger Sub completed a tender offer in which it purchased a majority of the shares of Dollar Thrifty common stock then outstanding at a price equal to $87.50 per share in cash. Merger Sub subsequently acquired the remaining shares of Dollar Thrifty common stock by means of a short-form merger in which such shares were converted into the right to receive the same $87.50 per share in cash paid in the tender offer. The total purchase price was approximately $2,592.0 million, which comprised of $2,551.0 million of cash, including our use of approximately $404.0 million of cash and cash equivalents available from Dollar Thrifty, and the fair value of our previously held equity interest in Dollar Thrifty of $41.0 million. As a result of re-measuring to fair value our equity interest previously held in Dollar Thrifty immediately before the acquisition date, we recognized a gain of approximately $8.4 million in our consolidated statements of operations within "Other (income) expense, net." As a condition of the Merger Agreement, and pursuant to a divestiture agreement reached with the Federal Trade Commission, Hertz divested its Simply Wheelz subsidiary, which owned and operated the Advantage brand, and secured for the buyer of Advantage certain Dollar Thrifty on-airport car rental concessions. Dollar Thrifty is now a wholly-owned subsidiary of Hertz. | ||||||||
The purchase price of Dollar Thrifty was funded with (i) cash proceeds of $1,950.0 million received by Hertz from its issuance of $1,950.0 million in aggregate principal amount of Senior Notes and Term Loans, (ii) approximately $404.0 million of acquired cash and cash equivalents from Dollar Thrifty, and (iii) the balance funded by Hertz's existing cash. | ||||||||
The Dollar Thrifty acquisition has been accounted for utilizing the acquisition method, which requires an allocation of the purchase price of the acquired entity to the assets acquired and liabilities assumed based on their estimated fair values from a market-participant perspective at the date of acquisition. The allocation of the purchase price as reflected within these consolidated financial statements is based on the best information available to management at the time these consolidated financial statements were issued and is preliminary pending the completion of the final valuation analysis of the Dollar Thrifty assets and liabilities. In particular, the valuation of income taxes, certain property and equipment and lease and other contracts acquired as of the acquisition date, have not been finalized. During the measurement period (which is not to exceed one year from the acquisition date), we will be required to retrospectively adjust the preliminary amounts recognized to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date. Further, during the measurement period, we are also required to recognize additional assets or liabilities if new information is obtained about facts and circumstances that existed as of the acquisition date that, if known, would have resulted in the recognition of those assets or liabilities as of that date. | ||||||||
The fair values of the assets acquired and liabilities assumed were preliminarily determined using the income, cost and market approaches. The fair values of acquired trade names and concession agreements were estimated using the income approach which values the subject asset using the projected cash flows to be generated by the asset, discounted at a required rate of return that reflects the relative risk of achieving the cash flow and the time value of money. The cost approach was utilized in combination with the market approach to estimate the fair values of property, plant and equipment and reflects the estimated reproduction or replacement costs for the assets, less an allowance for loss in value due to depreciation. The cost approach was utilized in combination with the market approach to estimate the fair values of most working capital accounts. | ||||||||
The following summarizes the fair values of the assets acquired and liabilities assumed as of the Dollar Thrifty acquisition date (in millions): | ||||||||
Cash and cash equivalents | $ | 535 | ||||||
Restricted cash and cash equivalents | 307 | |||||||
Receivables | 170 | |||||||
Inventories | 8 | |||||||
Prepaid expenses and other assets | 41 | |||||||
Revenue earning equipment | 1,614.00 | |||||||
Property and equipment | 119 | |||||||
Other intangible assets | 1,546.00 | |||||||
Other assets | 35 | |||||||
Goodwill | 885 | |||||||
Accounts payable | (43.0 | ) | ||||||
Accrued liabilities | (277.0 | ) | ||||||
Deferred taxes on income | (864.0 | ) | ||||||
Debt | (1,484.0 | ) | ||||||
Total | $ | 2,592.00 | ||||||
The identifiable intangible assets of $1,546.0 million consist of $1,140.0 million of trade names with an indefinite life and $406.0 million of concession agreements. The concession agreements will be amortized over their expected useful lives of nine years on a straight-line basis. | ||||||||
The excess of the purchase price over the net tangible and intangible assets acquired resulted in goodwill of $885.0 million which is attributable to the synergies and economies of scale provided to a market participant. The goodwill recorded in connection with this transaction is not deductible for income tax purposes. All such goodwill is reported in the car rental segment. | ||||||||
Donlen Acquisition | ||||||||
On September 1, 2011, Hertz acquired 100% of the equity of Donlen, a leading provider of fleet leasing and management services. Donlen provides Hertz an immediate leadership position in long-term car, truck and equipment leasing and fleet management, which enables us to present our customers a complete portfolio of transportation solutions and the enhanced ability to cross sell to each others' customer base. This transaction is part of the overall growth strategy of Hertz to provide the most flexible transportation programs for corporate and general consumers. Additionally, Donlen brings to Hertz a specialized consulting and technology expertise that will enable us to model, measure and manage fleet performance more effectively and efficiently. The combination of the strategic fit and expected fleet synergies described above are the primary drivers behind the excess purchase price paid over the fair value of the assets and liabilities acquired. All such goodwill recognized as part of this acquisition is reported in the car rental segment. | ||||||||
The Donlen equity valuation for the transaction was estimated at $250.0 million, subject to adjustment based on the net assets of Donlen at closing. The preliminary purchase price adjustment at closing resulted in a downward adjustment of $2.4 million. The final purchase price adjustment, based on the final Donlen closing date balance sheet, resulted in an upward adjustment of $2.4 million (resulting in a final closing cash payment of $250.0 million). None of the goodwill recognized as part of this acquisition is expected to be deductible for tax purposes. | ||||||||
The following summarizes the fair values of the assets acquired and liabilities assumed as of the acquisition date (in millions): | ||||||||
Cash and cash equivalents | $ | 35.6 | ||||||
Receivables | 64 | |||||||
Prepaid expenses and other assets | 7 | |||||||
Revenue earning equipment | 1,120.60 | |||||||
Property and equipment | 13.5 | |||||||
Other intangible assets | 75 | |||||||
Goodwill | 51.1 | |||||||
Accounts payable | (39.3 | ) | ||||||
Accrued liabilities | (226.8 | ) | ||||||
Deferred taxes on income | (121.9 | ) | ||||||
Debt | (728.8 | ) | ||||||
Total | $ | 250 | ||||||
Other intangible assets and their amortization periods are as follows: | ||||||||
Useful life | Fair value | |||||||
(in years) | (in millions) | |||||||
Customer relationships | 16 | $ | 65 | |||||
Trademark | 20 | 7 | ||||||
Non-compete agreement | 5 | 3 | ||||||
Total | $ | 75 | ||||||
This transaction has been accounted for using the acquisition method of accounting in accordance with GAAP and operating results of Donlen from the date of acquisition are included in our consolidated statements of operations. The allocation of the purchase price to the tangible and intangible net assets acquired is complete. | ||||||||
Actual and Pro forma Impact of Acquisitions | ||||||||
The pro forma information for December 31, 2012 and 2011 assumes that the Dollar Thrifty acquisition occurred on January 1, 2011. | ||||||||
The pro forma information for December 31, 2011 and 2010 assumes that the acquisition of Donlen occurred on January 1, 2010. | ||||||||
The unaudited pro forma financial information for the years ended December 31, 2012, 2011 and 2010 was as follows (in millions): | ||||||||
Revenue | Earnings | |||||||
Actual from 09/01/11 - 12/31/11 (Donlen only)(1) | $ | 142.7 | $ | 2 | ||||
Actual from 11/19/12 - 12/31/12 (Dollar Thrifty only)(2) | 170.6 | (25.9 | ) | |||||
2012 supplemental pro forma from 1/1/12 - 12/31/12 (combined entity)(3) | 10,193.30 | 441.8 | ||||||
2011 supplemental pro forma from 1/1/11 - 12/31/11 (combined entity)(4) | 9,920.30 | 235.1 | ||||||
2010 supplemental pro forma from 1/1/10 - 12/31/10 (combined entity)(5) | 7,904.30 | (48.6 | ) | |||||
_______________________________________________ | ||||||||
-1 | Donlen's actual earnings for the four months ended December 31, 2011 was impacted by certain charges related to the amortization expense associated with the acquired intangible assets and the fair value adjustment related to acquired software, as well as, the write-off of certain unamortized debt costs. | |||||||
-2 | Dollar Thrifty's actual earnings for the 43 days ended December 31, 2012 was impacted by certain charges related to the amortization expense associated with the acquired intangible assets and non-recurring compensation costs in connection with the merger. | |||||||
-3 | The unaudited pro forma financial information for the year ended December 31, 2012 combines the historical results of Hertz and Dollar Thrifty for the year ended December 31, 2012, and the effects of the pro forma adjustments listed below. | |||||||
-4 | The unaudited pro forma financial information for the year ended December 31, 2011 combines the historical results of Hertz, Donlen and Dollar Thrifty for the year ended December 31, 2011, and the effects of the pro forma adjustments listed below. | |||||||
-5 | The unaudited pro forma financial information for the year ended December 31, 2010 combines the historical results of Hertz and Donlen for the year ended December 31, 2010, and the effects of the pro forma adjustments listed below. | |||||||
The unaudited pro forma consolidated results do not purport to project the future results of operations of the combined entity nor do they reflect the expected realization of any cost savings associated with the acquisitions. The unaudited pro forma consolidated results reflect the historical financial information of Hertz Holdings, Donlen and Dollar Thrifty, adjusted for the following pre-tax amounts: | ||||||||
Pro forma adjustments - Dollar Thrifty acquisition | ||||||||
• | Additional amortization expense (approximately $38.9 million in 2012 and $44.4 million in 2011) related to the fair value of identifiable intangible assets acquired. | |||||||
• | Additional interest expense (approximately $72.7 million in 2012 and $79.1 million in 2011) associated with the new debt used to finance the Dollar Thrifty acquisition. | |||||||
• | Reclassifying merger related costs from 2012 to 2011 as though the Dollar Thrifty acquisition had been consummated as of January 1, 2011. | |||||||
• | Reclassifying non-recurring compensation costs incurred in connection with the merger and integration costs of approximately $46.7 million from 2012 to 2011 as though the Dollar Thrifty acquisition had been consummated as of January 1, 2011. | |||||||
• | Reclassifying the loss from the Advantage disposition from 2012 to 2011 as though the Dollar Thrifty acquisition had been consummated as of January 1, 2011. | |||||||
• | Reclassifying charges related to the impact of divesting Dollar Thrifty locations incurred in connection with the Dollar Thrifty acquisition from 2012 to 2011. | |||||||
• | Impact of fair value adjustment to revenue earning equipment. | |||||||
• | Adjustments to eliminate the results of operations of the Advantage business and locations to be divested where Dollar Thrifty operated at least one of its brands prior to the consummation of the Dollar Thrifty acquisition for the years ended December 31, 2012 and 2011. | |||||||
• | Including an estimated amount of leasing revenue to be earned by Hertz from leasing vehicles to the buyer of Advantage. The depreciation and other expenses associated with the vehicles being leased to the buyer of Advantage have not been eliminated from the pro forma financial statements, as their costs remain as part of Hertz's ongoing operations associated with owning such vehicles. | |||||||
All of the above adjustments were adjusted for the applicable tax impact. Hertz has generally assumed a 39% tax rate when estimating the tax impacts of the Dollar Thrifty acquisition, representing the statutory tax rate for Hertz. The effective tax rate of the combined company could be significantly different (either higher or lower) depending on post-Dollar Thrifty acquisition activities, cash needs and the geographical location of businesses. | ||||||||
Pro forma adjustments - Donlen acquisition | ||||||||
2011 supplemental pro forma revenue for the year ended December 31, 2011 excludes $3.2 million related to deferred revenue which was eliminated as part of acquisition accounting. 2011 supplemental pro forma earnings for the year ended December 31, 2011 excludes $2.0 million related to deferred income which was eliminated as part of acquisition accounting, and $6.1 million of acquisition related costs incurred in 2011. | ||||||||
2010 supplemental pro forma revenue for the year ended December 31, 2010 excludes $8.7 million related to deferred revenue which was eliminated as part of acquisition accounting. 2010 supplemental pro forma earnings for the year ended December 31, 2010 excludes $5.3 million related to deferred income which was eliminated as part of acquisition accounting, and includes $6.1 million of acquisition related costs incurred. | ||||||||
Other Acquisitions | ||||||||
During the year ended December 31, 2012, we added nineteen domestic equipment rental locations through external acquisitions. These acquisitions are not material to the consolidated amounts presented within our statement of operations for the year ended December 31, 2012. | ||||||||
Divestitures | ||||||||
Potential Divestiture of Selected Dollar Thrifty Airport Locations | ||||||||
In order to obtain regulatory approval and clearance for the Dollar Thrifty acquisition, Hertz agreed to dispose of Advantage, to secure for the buyer of Advantage certain on-airport car rental concessions and related assets at 13 locations where Dollar Thrifty operated at least one of its brands prior to the consummation of the Dollar Thrifty acquisition, or the “Initial airport locations.” Additionally, Hertz agreed to secure for the buyer of Advantage or, in certain cases, one or more other Federal Trade Commission-approved buyers, on-airport car rental concessions at 13 additional locations where Dollar Thrifty operated prior to the consummation of the Dollar Thrifty acquisition, or the “Secondary airport locations.” The buyer of Advantage agreed to assume all of the Secondary airport locations. As of December 31, 2012, Hertz recorded a loss, including for estimated support payments of $24.1 million. | ||||||||
Advantage Divestiture | ||||||||
On December 12, 2012, Hertz completed the sale of Simply Wheelz LLC, or the “Advantage divestiture,” a wholly owned subsidiary of Hertz that operated our Advantage Rent A Car business, or “Advantage,” for approximately $16.0 million, plus the value of current assets as of the closing date, which was approximately $3.6 million. As part of the agreement to sell Advantage, Hertz agreed to provide financial support to the buyer of Advantage in the amount of $17.0 million over a period of three years from the closing date (with the present value of $15.6 million as of December 31, 2012). As a result of the Advantage divestiture, Hertz realized a loss (before income taxes) of approximately $31.4 million as of December 31, 2012. | ||||||||
To assist the buyer of Advantage in securing alternative fleet financing arrangements, Hertz entered into a senior note credit agreement, pursuant to which Hertz agreed, subject to certain conditions, to loan Simply Wheelz, on a senior unsecured basis, up to $45.0 million over 5 years (2.5 years weighted average life) at varied interest rates up to 13% over the life of the loan. | ||||||||
Further, Hertz agreed to sublease vehicles to the buyer of Advantage for use in continuing the operations of Advantage, for a period no longer than two years from the closing date. As such, Hertz will have significant continuing involvement in the operations of the disposed Advantage business. Therefore, the operating results associated with the Advantage business will continue to be classified as part of our continuing operations in the consolidated statements of operations for all periods presented. |
Debt1
Debt | 6 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | ||||||||||||||||||||||||||||
Debt | |||||||||||||||||||||||||||||
Debt | Debt | Debt | |||||||||||||||||||||||||||
Our debt consists of the following (in millions of dollars): | |||||||||||||||||||||||||||||
Our debt consists of the following (in millions of dollars): | |||||||||||||||||||||||||||||
Facility | Average Interest Rate at December 31, 2012(1) | Fixed or | Maturity | December 31, | December 31, | ||||||||||||||||||||||||
Facility | Average | Fixed or | Maturity | June 30, | December 31, | Floating | 2012 | 2011 | |||||||||||||||||||||
Interest Rate | Floating | 2013 | 2012 | Interest | |||||||||||||||||||||||||
at June 30, | Interest | Rate | |||||||||||||||||||||||||||
2013(1) | Rate | Corporate Debt | |||||||||||||||||||||||||||
Corporate Debt | Senior Term Facility | 3.75% | Floating | Mar-18 | $ | 2,125.50 | $ | 1,389.50 | |||||||||||||||||||||
Senior Term Facility | 3.26 | % | Floating | Mar-18 | $ | 2,114.80 | $ | 2,125.50 | |||||||||||||||||||||
Senior ABL Facility | 2.89 | % | Floating | Mar-16 | 1,005.80 | 195 | Senior ABL Facility | 2.47% | Floating | Mar-16 | 195 | — | |||||||||||||||||
Senior Notes(2) | 6.58 | % | Fixed | 4/2018 - 10/2022 | 3,900.00 | 3,650.00 | |||||||||||||||||||||||
Promissory Notes | 6.96 | % | Fixed | 6/2012 - 1/2028 | 48.7 | 48.7 | Senior Notes(2) | 6.74% | Fixed | 10/2018–10/2022 | 3,650.00 | 2,638.60 | |||||||||||||||||
Other Corporate Debt | 3.51 | % | Floating | Various | 58.5 | 88.7 | |||||||||||||||||||||||
Unamortized Net Premium (Corporate) | 3.2 | 3.3 | Promissory Notes | 6.96% | Fixed | 6/2012–1/2028 | 48.7 | 224.7 | |||||||||||||||||||||
Total Corporate Debt | 7,131.00 | 6,111.20 | Other Corporate Debt | 4.40% | Floating | Various | 88.7 | 49.6 | |||||||||||||||||||||
Fleet Debt | Unamortized Net (Discount) Premium (Corporate) | 3.3 | (6.9 | ) | |||||||||||||||||||||||||
HVF U.S. ABS Program | |||||||||||||||||||||||||||||
HVF U.S. Fleet Variable Funding Notes: | Total Corporate Debt | 6,111.20 | 4,295.50 | ||||||||||||||||||||||||||
HVF Series 2009-1(3) | 1.04 | % | Floating | Mar-14 | 2,590.00 | 2,350.00 | |||||||||||||||||||||||
Fleet Debt | |||||||||||||||||||||||||||||
2,590.00 | 2,350.00 | HVF U.S. ABS Program | |||||||||||||||||||||||||||
HVF U.S. Fleet Variable Funding Notes: | |||||||||||||||||||||||||||||
HVF U.S. Fleet Medium Term Notes | HVF Series 2009-1(3) | 1.11% | Floating | Mar-14 | 2,350.00 | 1,000.00 | |||||||||||||||||||||||
HVF Series 2009-2(3) | 5.37 | % | Fixed | 3/2013 - 3/2015 | 807.5 | 1,095.90 | |||||||||||||||||||||||
HVF Series 2010-1(3) | 3.77 | % | Fixed | 2/2014 - 2/2018 | 749.8 | 749.8 | HVF Series 2010-2(3) | N/A | Floating | Mar-13 | — | 170 | |||||||||||||||||
HVF Series 2011-1(3) | 2.86 | % | Fixed | 3/2015 - 3/2017 | 598 | 598 | |||||||||||||||||||||||
HVF Series 2013-1(3) | 1.68 | % | Fixed | 8/2016 - 8/2018 | 950 | — | HVF Series 2011-2(3) | N/A | Floating | Apr-12 | — | 175 | |||||||||||||||||
3,105.30 | 2,443.70 | 2,350.00 | 1,345.00 | ||||||||||||||||||||||||||
RCFC U.S. ABS Program | HVF U.S. Fleet Medium Term Notes | ||||||||||||||||||||||||||||
RCFC U.S. Fleet Variable Funding Notes | HVF Series 2009-2(3) | 5.11% | Fixed | 3/2013–3/2015 | 1,095.90 | 1,384.30 | |||||||||||||||||||||||
RCFC Series 2010-3 Notes(3)(4) | 1.03 | % | Floating | Dec-13 | 540 | 519 | |||||||||||||||||||||||
RCFC U.S. Fleet Medium Term Notes | HVF Series 2010-1(3) | 3.77% | Fixed | 2/2014–2/2018 | 749.8 | 749.8 | |||||||||||||||||||||||
RCFC Series 2011-1 Notes(3)(4) | 2.81 | % | Fixed | Feb-15 | 500 | 500 | |||||||||||||||||||||||
RCFC Series 2011-2 Notes(3)(4) | 3.21 | % | Fixed | May-15 | 400 | 400 | HVF Series 2011-1(3) | 2.86% | Fixed | 3/2015–3/2017 | 598 | 598 | |||||||||||||||||
1,440.00 | 1,419.00 | 2,443.70 | 2,732.10 | ||||||||||||||||||||||||||
Donlen ABS Program | |||||||||||||||||||||||||||||
Donlen GN II Variable Funding Notes(5) | 1 | % | Floating | Dec-13 | 943.8 | 899.3 | RCFC U.S. ABS Program | ||||||||||||||||||||||
RCFC U.S. Fleet Variable Funding Notes | |||||||||||||||||||||||||||||
Other Fleet Debt | RCFC Series 2010-3 Notes(3)(4) | 1.06% | Floating | Dec-13 | 519 | — | |||||||||||||||||||||||
U.S. Fleet Financing Facility | 2.95 | % | Floating | Sep-15 | 171 | 166 | |||||||||||||||||||||||
European Revolving Credit Facility | 2.67 | % | Floating | Jun-15 | 357.9 | 185.3 | RCFC U.S. Fleet Medium Term Notes | ||||||||||||||||||||||
European Fleet Notes | 8.5 | % | Fixed | Jul-15 | 520.5 | 529.4 | RCFC Series 2011-1 Notes(3)(4) | 2.81% | Fixed | Feb-15 | 500 | — | |||||||||||||||||
European Securitization(3) | 2.5 | % | Floating | Jul-14 | 363 | 242.2 | |||||||||||||||||||||||
Hertz-Sponsored Canadian Securitization(3) | 2.14 | % | Floating | Mar-14 | 124.2 | 100.5 | RCFC Series 2011-2 Notes(3)(4) | 3.21% | Fixed | May-15 | 400 | — | |||||||||||||||||
Dollar Thrifty Sponsored Canadian Securitization(3)(4) | 2.13 | % | Floating | Aug-14 | 76.4 | 55.3 | |||||||||||||||||||||||
Australian Securitization(3)(6) | 4.17 | % | Floating | Dec-14 | 119.7 | 148.9 | 1,419.00 | — | |||||||||||||||||||||
Brazilian Fleet Financing Facility | 13.89 | % | Floating | Oct-13 | 13 | 14 | |||||||||||||||||||||||
Capitalized Leases | 4.08 | % | Floating | Various | 429.6 | 337.6 | Donlen ABS Program | ||||||||||||||||||||||
Unamortized Discount (Fleet) | 8.8 | 12.1 | Donlen GN II Variable Funding Notes(3) | 1.15% | Floating | Dec-13 | 899.3 | 811.2 | |||||||||||||||||||||
2,184.10 | 1,791.30 | Other Fleet Debt | |||||||||||||||||||||||||||
U.S. Fleet Financing Facility | 3.27% | Floating | Sep-15 | 166 | 136 | ||||||||||||||||||||||||
Total Fleet Debt | 10,263.20 | 8,903.30 | |||||||||||||||||||||||||||
European Revolving Credit Facility | 2.86% | Floating | Jun-15 | 185.3 | 200.6 | ||||||||||||||||||||||||
Total Debt | $ | 17,394.20 | $ | 15,014.50 | |||||||||||||||||||||||||
European Fleet Notes | 8.50% | Fixed | Jul-15 | 529.4 | 517.7 | ||||||||||||||||||||||||
European Securitization(3) | 2.48% | Floating | Jul-14 | 242.2 | 256.2 | ||||||||||||||||||||||||
Note: | |||||||||||||||||||||||||||||
For further information on the definitions and terms of our debt, see Note 5 of the Notes to our audited annual consolidated financial statements included in our Form 10-K under the caption "Item 8—Financial Statements and Supplementary Data." | |||||||||||||||||||||||||||||
-1 | Facility | Average Interest Rate at December 31, 2012(1) | Fixed or | Maturity | December 31, | December 31, | |||||||||||||||||||||||
As applicable, reference is to the June 30, 2013 weighted average interest rate (weighted by principal balance). | Floating | 2012 | 2011 | ||||||||||||||||||||||||||
Interest | |||||||||||||||||||||||||||||
-2 | Rate | ||||||||||||||||||||||||||||
References to our "Senior Notes" include the series of Hertz's unsecured senior notes set forth in the table below. As of June 30, 2013 and December 31, 2012, the outstanding principal amount for each such series of the Senior Notes is as specified below. | Hertz-Sponsored Canadian Securitization(3) | 2.16% | Floating | Jun-13 | 100.5 | 68.3 | |||||||||||||||||||||||
Dollar Thrifty Sponsored Canadian Securitization(3)(4) | 2.13% | Floating | Aug-14 | 55.3 | — | ||||||||||||||||||||||||
Outstanding Principal | |||||||||||||||||||||||||||||
(in millions) | Australian Securitization(3) | 4.61% | Floating | Dec-14 | 148.9 | 169.3 | |||||||||||||||||||||||
Senior Notes | June 30, | December 31, | |||||||||||||||||||||||||||
2013 | 2012 | Brazilian Fleet Financing Facility | 13.07% | Floating | Feb-13 | 14 | 23.1 | ||||||||||||||||||||||
4.25% Senior Notes due April 2018 | $ | 250 | $ | — | |||||||||||||||||||||||||
7.50% Senior Notes due October 2018 | 700 | 700 | Capitalized Leases | 4.40% | Floating | Various | 337.6 | 363.7 | |||||||||||||||||||||
6.75% Senior Notes due April 2019 | 1,250.00 | 1,250.00 | |||||||||||||||||||||||||||
5.875% Senior Notes due October 2020 | 700 | 700 | Unamortized Net (Discount) Premium (Fleet) | 12.1 | (10.9 | ) | |||||||||||||||||||||||
7.375% Senior Notes due January 2021 | 500 | 500 | |||||||||||||||||||||||||||
6.25% Senior Notes due October 2022 | 500 | 500 | 1,791.30 | 1,724.00 | |||||||||||||||||||||||||
$ | 3,900.00 | $ | 3,650.00 | Total Fleet Debt | 8,903.30 | 6,612.30 | |||||||||||||||||||||||
Total Debt | $ | 15,014.50 | $ | 10,907.80 | |||||||||||||||||||||||||
-3 | |||||||||||||||||||||||||||||
Maturity reference is to the "expected final maturity date" as opposed to the subsequent "legal maturity date." The expected final maturity date is the date by which Hertz and investors in the relevant indebtedness expect the relevant indebtedness to be repaid. The legal final maturity date is the date on which the relevant indebtedness is legally due and payable. | _______________________________________________________________________________ | ||||||||||||||||||||||||||||
-4 | -1 | As applicable, reference is to the December 31, 2012 weighted average interest rate (weighted by principal balance). | |||||||||||||||||||||||||||
RCFC U.S. ABS Program and the Dollar Thrifty-Sponsored Canadian Securitization represent fleet debt acquired in connection with the Dollar Thrifty acquisition on November 19, 2012. | |||||||||||||||||||||||||||||
-2 | References to our "Senior Notes" include the series of Hertz's unsecured senior notes set forth in the table below. As of December 31, 2012 and December 31, 2011, the outstanding principal amount for each such series of the Senior Notes is also specified below. | ||||||||||||||||||||||||||||
Maturities | |||||||||||||||||||||||||||||
The aggregate amounts of maturities of debt for each of the twelve-month periods ending June 30 (in millions of dollars) are as follows: | Outstanding Principal (in millions) | ||||||||||||||||||||||||||||
Senior Notes | December 31, 2012 | 31-Dec-11 | |||||||||||||||||||||||||||
8.875% Senior Notes due January 2014 | $ | — | $ | 162.3 | |||||||||||||||||||||||||
2014 | $ | 7,028.30 | (including $6,741.1 of other short-term borrowings*) | ||||||||||||||||||||||||||
2015 | $ | 2,124.40 | 7.875% Senior Notes due January 2014 | — | 276.3 | -€ 213.50 | |||||||||||||||||||||||
2016 | $ | 1,140.00 | |||||||||||||||||||||||||||
2017 | $ | 366.5 | 7.50% Senior Notes due October 2018 | 700 | 700 | ||||||||||||||||||||||||
2018 | $ | 2,819.10 | |||||||||||||||||||||||||||
After 2018 | $ | 3,903.90 | 6.75% Senior Notes due April 2019 | 1,250.00 | 1,000.00 | ||||||||||||||||||||||||
5.875% Senior Notes due October 2020 | 700 | — | |||||||||||||||||||||||||||
* | |||||||||||||||||||||||||||||
Our short-term borrowings as of June 30, 2013 include, among other items, the amounts outstanding under the Senior ABL Facility, HVF U.S. Fleet Variable Funding Notes, RCFC U.S. Fleet Variable Funding Notes, Donlen GN II Variable Funding Notes, U.S. Fleet Financing Facility, European Revolving Credit Facility, European Securitization, Hertz-Sponsored Canadian Securitization, Dollar Thrifty-Sponsored Canadian Securitization, Australian Securitization, Brazilian Fleet Financing Facility and Capitalized Leases. These amounts are reflected as short-term borrowings, regardless of the facility maturity date, as these facilities are revolving in nature and/or the outstanding borrowings have maturities of three months or less. As of June 30, 2013, short-term borrowings had a weighted average interest rate of 1.8%. | 7.375% Senior Notes due January 2021 | 500 | 500 | ||||||||||||||||||||||||||
We are highly leveraged and a substantial portion of our liquidity needs arise from debt service on our indebtedness and from the funding of our costs of operations and capital expenditures. We believe that cash generated from operations and cash received on the disposal of vehicles and equipment, together with amounts available under various liquidity facilities will be adequate to permit us to meet our debt maturities over the next twelve months. | 6.25% Senior Notes due October 2022 | 500 | — | ||||||||||||||||||||||||||
Letters of Credit | $ | 3,650.00 | $ | 2,638.60 | |||||||||||||||||||||||||
As of June 30, 2013, there were outstanding standby letters of credit totaling $664.4 million. Of this amount, $638.0 million was issued under the Senior Credit Facilities. As of June 30, 2013, none of these letters of credit have been drawn upon. | |||||||||||||||||||||||||||||
2013 Events | -3 | Maturity reference is to the "expected final maturity date" as opposed to the subsequent "legal maturity date." The expected final maturity date is the date by which Hertz and investors in the relevant indebtedness expect the relevant indebtedness to be repaid. The legal final maturity date is the date on which the relevant indebtedness is legally due and payable. | |||||||||||||||||||||||||||
In January 2013, Hertz Vehicle Financing LLC, or "HVF," an insolvency remote, direct, wholly-owned, special purpose subsidiary of Hertz, completed the issuance of $950.0 million in aggregate principal amount of three year and five year Series 2013-1 Rental Car Asset Backed Notes, Class A and Class B. The $282.75 million of three year Class A notes carry a 1.12% coupon, the $42.25 million of three year Class B notes carry a 1.86% coupon, the $543.75 million of five year Class A notes carry a 1.83% coupon, and the $81.25 million of five year Class B notes carry a 2.48% coupon. The three year notes and five year notes have expected final payment dates in August 2016 and August 2018, respectively. The Class B notes are subordinated to the Class A notes. | -4 | RCFC U.S. ABS Program and the Dollar Thrifty-Sponsored Canadian Securitization represent fleet debt acquired in connection with the Dollar Thrifty acquisition on November 19, 2012. | |||||||||||||||||||||||||||
Maturities | |||||||||||||||||||||||||||||
The net proceeds from the sale of HVF's Series 2013-1 Rental Car Asset Backed Notes was, to the extent permitted by the applicable agreements, (i) used to pay the purchase price of vehicles acquired by HVF pursuant to HVF's U.S. ABS Program (as defined herein), (ii) used to pay the principal amount of other HVF U.S. ABS Program indebtedness that is then permitted or required to be paid or (iii) released to HVF to be distributed to Hertz or otherwise used by HVF for general purposes. | The aggregate amounts of maturities of debt for each of the twelve-month periods ending December 31 (in millions of dollars) are as follows: | ||||||||||||||||||||||||||||
In February 2013, Hertz caused its Brazilian operating subsidiary to amend the Brazilian Fleet Financing Facility to extend the maturity date from February 2013 to October 2013. | |||||||||||||||||||||||||||||
2013 | $ | 5,744.10 | (including $5,244.0 of other short-term borrowings*) | ||||||||||||||||||||||||||
In March 2013, Hertz issued $250 million in aggregate principal amount of 4.25% Senior Notes due 2018. The proceeds of this March 2013 offering were used by us to replenish a portion of our liquidity, after having dividended $467.2 million in available liquidity to Hertz Holdings, which Hertz Holdings used to repurchase 23,200,000 shares of its common stock in March 2013. | |||||||||||||||||||||||||||||
2014 | $ | 1,122.10 | |||||||||||||||||||||||||||
In April 2013, Hertz entered into an Amendment No. 2, or "Amendment No. 2," to the Senior Term Facility, primarily to reduce the interest rate applicable to a portion of the outstanding term loans under the Senior Term Facility. Prior to Amendment No. 2, approximately $1,372.0 million of tranche B term loans, or "Tranche B Term Loans", under the Senior Term Facility bore interest at a floating rate measured by reference to, at Hertz's option, either (i) an adjusted London inter-bank offered rate not less than 1.00 percent plus a borrowing margin of 2.75 percent per annum or (ii) an alternate base rate plus a borrowing margin of 1.75 percent per annum. Pursuant to Amendment No. 2, certain of the existing lenders under the Senior Term Facility converted their existing Tranche B Term Loans into a new tranche of tranche B-2 term loans, or the "Tranche B-2 Term Loans", in an aggregate principal amount, along with new loans advanced by certain new lenders, of approximately $1,372.0 million. The proceeds of Tranche B-2 Term Loans advanced by the new lenders were used to prepay in full all of the Tranche B Term Loans that were not converted into Tranche B-2 Term Loans. | |||||||||||||||||||||||||||||
2015 | $ | 1,894.10 | |||||||||||||||||||||||||||
The Tranche B-2 Term Loans bear interest at a floating rate measured by reference to, at Hertz's option, either (i) an adjusted London inter-bank offered rate not less than 0.75 percent plus a borrowing margin of 2.25 percent per annum or (ii) an alternate base rate plus a borrowing margin of 1.25 percent per annum. The terms and conditions of the new Tranche B-2 Term Loans with respect to maturity, collateral, and covenants are otherwise unchanged compared to the Tranche B Term Loans. | |||||||||||||||||||||||||||||
2016 | $ | 267.1 | |||||||||||||||||||||||||||
In May 2013, the U.K. Leveraged Financing was amended to provide for additional amounts available under the U.K. Leveraged Financing of £25 million (the equivalent of $38.3 million as of June 30, 2013) for a commitment period running from May 30, 2013 to October 30, 2013. | |||||||||||||||||||||||||||||
2017 | $ | 219.2 | |||||||||||||||||||||||||||
In May 2013, HVF amended the HVF Series 2009-1 Notes to permit aggregate maximum borrowings of $2,738.8 million (subject to borrowing base availability). | |||||||||||||||||||||||||||||
After 2017 | $ | 5,752.50 | |||||||||||||||||||||||||||
In June 2013, Hertz Holdings Netherlands B.V., an indirect wholly-owned subsidiary of Hertz organized under the laws of Netherlands, or "HHN BV," amended the European Revolving Credit Facility to provide for aggregate maximum borrowings of an additional €100 million (the equivalent of $130.1 million as of June 30, 2013), subject to borrowing base availability, for a commitment period running from June 12, 2013 to December 16, 2013. | |||||||||||||||||||||||||||||
_______________________________________________________________________________ | |||||||||||||||||||||||||||||
In the second quarter of 2013, HC Limited Partnership amended the Hertz-Sponsored Canadian Securitization to extend the maturity from June 2013 to March 2014. | |||||||||||||||||||||||||||||
For subsequent events relating to our indebtedness, see Note 18—Subsequent Events. | * | Our short-term borrowings as of December 31, 2012 include, among other items, the amounts outstanding under the Senior ABL Facility, HVF U.S. Fleet Variable Funding Notes, RCFC U.S. Fleet Variable Funding Notes, Donlen GN II Variable Funding Notes, U.S. Fleet Financing Facility, European Revolving Credit Facility, European Securitization, Hertz-Sponsored Canadian Securitization, Dollar Thrifty-Sponsored Canadian Securitization, Australian Securitization, Brazilian Fleet Financing Facility and Capitalized Leases. These amounts are reflected as short-term borrowings, regardless of the facility maturity date, as these facilities are revolving in nature and/or the outstanding borrowings have maturities of three months or less. As of December 31, 2012, short-term borrowings had a weighted average interest rate of 1.8%. | |||||||||||||||||||||||||||
We are highly leveraged and a substantial portion of our liquidity needs arise from debt service on our indebtedness and from the funding of our costs of operations, acquisitions and capital expenditures. We believe that cash generated from operations and cash received on the disposal of vehicles and equipment, together with amounts available under various liquidity facilities will be adequate to permit us to meet our debt maturities over the next twelve months. | |||||||||||||||||||||||||||||
Registration Rights | Letters of Credit | ||||||||||||||||||||||||||||
As of December 31, 2012, there were outstanding standby letters of credit totaling $681.4 million. Of this amount, $626.6 million was issued under the Senior Credit Facilities. As of December 31, 2012, none of these letters of credit have been drawn upon. | |||||||||||||||||||||||||||||
Pursuant to the terms of the exchange and registration rights agreement entered into in connection with the issuance of $250 million in aggregate principal amount of the 4.25% Senior Notes due 2018 in March 2013, Hertz agreed to file a registration statement under the Securities Act of 1933, as amended, to permit either the exchange of such notes for registered notes or, in the alternative, the registered resale of such notes. Hertz's failure to meet its obligations under the exchange and registration rights agreement, including by failing to have the registration statement become effective by March 2014 or failing to complete the exchange offer by April 2014, will result in Hertz incurring special interest on such notes at a per annum rate of 0.25% for the first 90 days of any period where any such failure has occurred and is continuing, which rate will be increased by an additional 0.25% during each subsequent 90 day period, up to a maximum of 0.50%. A registration statement on Form S-4 was filed with the SEC on June 26, 2013 covering the exchange of such notes. We do not believe the special interest obligation is probable, and as such, we have not recorded any amounts with respect to this registration payment arrangement. | Acquisition Bridge Financing | ||||||||||||||||||||||||||||
In August 2012 in conjunction with signing of the merger agreement with Dollar Thrifty, Hertz obtained $1,950.0 million in financing commitments for use in acquiring Dollar Thrifty. In October 2012 after having secured permanent financing for the Dollar Thrifty acquisition, Hertz terminated these commitments having never drawn upon them. | |||||||||||||||||||||||||||||
Guarantees and Security | CORPORATE DEBT | ||||||||||||||||||||||||||||
Senior Credit Facilities | |||||||||||||||||||||||||||||
In February 2013 and March 2013, we added Dollar Thrifty and certain of its subsidiaries as guarantors under certain of our debt instruments and credit facilities including the Senior Term Facility and the Senior Notes. There have been no material changes to the guarantees and security provisions of the debt instruments and credit facilities under which our indebtedness as of June 30, 2013 has been issued from the terms as disclosed in our Form 10-K. | Senior Term Facility: In March 2011, Hertz entered into a credit agreement that provides a $1,400.0 million term loan, or as amended, the ‘‘Senior Term Facility.’’ In addition, the Senior Term Facility includes a separate incremental pre-funded synthetic letter of credit facility in an aggregate principal amount of $200.0 million. Subject to the satisfaction of certain conditions and limitations, the Senior Term Facility allows for the incurrence of incremental term and/or revolving loans. | ||||||||||||||||||||||||||||
On October 9, 2012, Hertz entered into an Incremental Commitment Amendment to the Senior Term Facility which provided for commitments for the Incremental Term Loans of $750.0 million under the Senior Term Facility. Contemporaneously with the consummation of the Dollar Thrifty acquisition, the Incremental Term Loans were fully drawn and the proceeds therefrom were used to: (i) finance a portion of the consideration in connection with the Dollar Thrifty acquisition, (ii) pay off obligations of Dollar Thrifty and its subsidiaries in connection with the Dollar Thrifty acquisition and (iii) pay fees and other transaction expenses in connection with the Dollar Thrifty acquisition and the related financing transactions. | |||||||||||||||||||||||||||||
Financial Covenant Compliance | The Incremental Term Loans are secured by the same collateral and guaranteed by the same guarantors as the previously existing term loans under the Senior Term Facility. The Incremental Term Loans will, like the previously existing term loans under the Senior Term Facility, mature on March 11, 2018 and the interest rate per annum applicable thereto will be the same as such previously existing term loans. The other terms of the Incremental Term Loans are also generally the same. | ||||||||||||||||||||||||||||
Senior ABL Facility: In March 2011, Hertz, HERC, and certain other of our subsidiaries entered into a credit agreement that provides for aggregate maximum borrowings of $1,800.0 million (subject to borrowing base availability) on a revolving basis under an asset‑based revolving credit facility. We refer to this facility, as amended, from time to time, as the “Senior ABL Facility.” Up to $1,500.0 million of the Senior ABL Facility is available for the issuance of letters of credit, subject to certain conditions including issuing lender participation. Subject to the satisfaction of certain conditions and limitations, the Senior ABL Facility allows for the addition of incremental revolving and/or term loan commitments. In addition, the Senior ABL Facility permits Hertz to increase the amount of commitments under the Senior ABL Facility with the consent of each lender providing an additional commitment, subject to satisfaction of certain conditions. | |||||||||||||||||||||||||||||
Under the terms of our Senior Term Facility and Senior ABL Facility, we are not subject to ongoing financial maintenance covenants; however, under the Senior ABL Facility, failure to maintain certain levels of liquidity will subject the Hertz 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 June 30, 2013, we were not subject to such contractually specified fixed charge coverage ratio. | We refer to the Senior Term Facility and the Senior ABL Facility together as the “Senior Credit Facilities.” Hertz's obligations under the Senior Credit Facilities are guaranteed by its immediate parent (Hertz Investors, Inc.) and most of its direct and indirect domestic subsidiaries (subject to certain exceptions, including Hertz International Limited, which ultimately owns entities carrying on most of our international operations, and subsidiaries involved in the HVF U.S. Asset-Backed Securities, or "ABS," Program, the Donlen ABS Program and, the RCFC U.S. ABS Program). In addition, the obligations of the “Canadian borrowers” under the Senior ABL Facility are guaranteed by their respective subsidiaries, subject to certain exceptions. | ||||||||||||||||||||||||||||
The lenders under the Senior Credit Facilities have been granted a security interest in substantially all of the tangible and intangible assets of the borrowers and guarantors under those facilities, including pledges of the stock of certain of their respective domestic subsidiaries (subject, in each case, to certain exceptions, including certain vehicles). Each of the Senior Credit Facilities permits the incurrence of future indebtedness secured on a basis either equal to or subordinated to the liens securing the applicable Senior Credit Facility or on an unsecured basis. | |||||||||||||||||||||||||||||
Borrowing Capacity and Availability | We refer to Hertz and its subsidiaries as the Hertz credit group. The Senior Credit Facilities contain a number of covenants that, among other things, limit or restrict the ability of the Hertz credit group to dispose of assets, incur additional indebtedness, incur guarantee obligations, prepay certain indebtedness, make dividends and other restricted payments (including to the parent entities of Hertz and other persons), create liens, make investments, make acquisitions, engage in mergers, change the nature of their business, engage in certain transactions with affiliates that are not within the Hertz credit group or enter into certain restrictive agreements limiting the ability to pledge assets. | ||||||||||||||||||||||||||||
Under the Senior ABL Facility, failure to maintain certain levels of liquidity will subject the Hertz 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, 2012, we were not subject to such contractually specified fixed charge coverage ratio. | |||||||||||||||||||||||||||||
As of June 30, 2013, the following facilities were available for the use of Hertz and its subsidiaries (in millions of dollars): | Covenants in the Senior Term Facility restrict payment of cash dividends to any parent of Hertz, including Hertz Holdings, with certain exceptions, including: (i) in an aggregate amount not to exceed 1.0% of the greater of a specified minimum amount and the consolidated tangible assets of the Hertz credit group (which payments are deducted in determining the amount available as described in the next clause (ii)), (ii) in additional amounts up to a specified available amount determined by reference to, among other things, an amount set forth in the Senior Term Facility plus 50% of net income from January 1, 2011 to the end of the most recent fiscal quarter for which financial statements of Hertz are available (less certain investments) and (iii) in additional amounts not to exceed the amount of certain equity contributions made to Hertz. | ||||||||||||||||||||||||||||
Covenants in the Senior ABL Facility restrict payment of cash dividends to any parent of Hertz, including Hertz Holdings, except in an aggregate amount, taken together with certain investments, acquisitions and optional prepayments, not to exceed $200 million. Hertz may also pay additional cash dividends under the Senior ABL Facility so long as, among other things, (a) no specified default then exists or would arise as a result of making such dividends, (b) there is at least $200 million of liquidity under the Senior ABL Facility after giving effect to the proposed dividend, and (c) either (i) if such liquidity is less than $400 million immediately after giving effect to the making of such dividends, Hertz is in compliance with a specified fixed charge coverage ratio, or (ii) the amount of the proposed dividend does not exceed the sum of (x) 1.0% of tangible assets plus (y) a specified available amount determined by reference to, among other things, 50% of net income from January 1, 2011 to the end of the most recent fiscal quarter for which financial statements of Hertz are available plus (z) a specified amount of certain equity contributions made to Hertz. | |||||||||||||||||||||||||||||
In November 2012, we amended the Senior ABL Facility to deem letters of credit issued under Dollar Thrifty's now-terminated senior revolving credit facility to have been issued under the Senior ABL Facility. | |||||||||||||||||||||||||||||
Remaining | Availability Under | Senior Notes | |||||||||||||||||||||||||||
Capacity | Borrowing Base | In March 2012, Hertz issued an additional $250.0 million aggregate principal of the 6.75% Senior Notes due 2019. The proceeds of this March 2012 offering were used in March 2012 in part to redeem $162.3 million principal amount of Hertz's outstanding 8.875% Senior Notes due 2014 which resulted in the write-off of unamortized debt costs of $1.2 million recorded in "Interest expense" on our consolidated statement of operations. The remainder of the proceeds of this March 2012 offering, along with cash on hand or drawings under the Senior ABL Facility were used to redeem €213.5 million ($286.0 million) of Hertz's outstanding 7.875% Senior Notes due 2014, which resulted in the write-off of unamortized debt costs of $2.0 million recorded in "Interest expense" on our consolidated statement of operations. | |||||||||||||||||||||||||||
Limitation | In October 2012, HDTFS, Inc., a newly-formed, wholly-owned subsidiary of Hertz issued and sold $700.0 million aggregate principal amount of 5.875% Senior Notes due 2020 and $500.0 million aggregate principal amount of 6.250% Senior Notes due 2022 in a private offering. The gross proceeds of the offering were held in an escrow account until the date of the completion of the acquisition of Dollar Thrifty, at which time the gross proceeds of the offering were released from escrow and HDTFS, Inc. was merged into Hertz. | ||||||||||||||||||||||||||||
Corporate Debt | Hertz's obligations under the indentures for the Senior Notes are guaranteed by each of its direct and indirect domestic subsidiaries that is a guarantor under the Senior Term Facility. The guarantees of all of the Subsidiary Guarantors may be released to the extent such subsidiaries no longer guarantee our Senior Credit Facilities in the United States. HERC may also be released from its guarantee under the outstanding Senior Notes at any time at which no event of default under the related indenture has occurred and is continuing, notwithstanding that HERC may remain a subsidiary of Hertz. | ||||||||||||||||||||||||||||
Senior ABL Facility | $ | 357.3 | $ | 357.3 | The indentures for the Senior Notes contain covenants that, among other things, limit or restrict the ability of the Hertz credit group to incur additional indebtedness, incur guarantee obligations, prepay certain indebtedness, make certain restricted payments (including paying dividends, redeeming stock or making other distributions to parent entities of Hertz and other persons outside of the Hertz credit group), make investments, create liens, transfer or sell assets, merge or consolidate, and enter into certain transactions with Hertz's affiliates that are not members of the Hertz credit group. | ||||||||||||||||||||||||
The covenants in the indentures for the Senior Notes also restrict Hertz and other members of the Hertz credit group from redeeming stock or making loans, advances, dividends, distributions or other restricted payments to any entity that is not a member of the Hertz credit group, including Hertz Holdings, subject to certain exceptions. | |||||||||||||||||||||||||||||
Total Corporate Debt | 357.3 | 357.3 | Promissory Notes | ||||||||||||||||||||||||||
References to our “Promissory Notes” relate to our promissory notes issued under three separate indentures prior to the Acquisition. | |||||||||||||||||||||||||||||
Fleet Debt | FLEET DEBT | ||||||||||||||||||||||||||||
HVF U.S. Fleet Variable Funding Notes | 148.8 | — | The governing documents of certain of the fleet debt financing arrangements specified below contain covenants that, among other things, significantly limit or restrict (or upon certain circumstances may significantly restrict or prohibit) the ability of the borrowers, and the guarantors if applicable, to make certain restricted payments (including paying dividends, redeeming stock, making other distributions, loans or advances) to Hertz Holdings and Hertz, whether directly or indirectly. | ||||||||||||||||||||||||||
RCFC U.S. Fleet Variable Funding Notes | 60 | — | HVF U.S. ABS Program | ||||||||||||||||||||||||||
Donlen GN II Variable Funding Notes | 60 | — | Hertz Vehicle Financing LLC, an insolvency remote, direct, wholly‑owned, special purpose subsidiary of Hertz, or “HVF,” is the issuer under the HVF U.S. ABS Program. HVF has entered into a base indenture that permits it to issue term and revolving rental car asset‑backed securities, the collateral for which consists primarily of a substantial portion of the rental car fleet used in Hertz's (and through fleet sharing arrangements, a portion of the fleet used in Dollar Thrifty's) domestic car rental operations and contractual rights related to such vehicles. | ||||||||||||||||||||||||||
U.S. Fleet Financing Facility | 19 | — | References to the “HVF U.S. ABS Program” include HVF's U.S. Fleet Variable Funding Notes together with HVF's U.S. Fleet Medium Term Notes. | ||||||||||||||||||||||||||
European Revolving Credit Facility | 58.5 | — | HVF U.S. Fleet Variable Funding Notes | ||||||||||||||||||||||||||
European Securitization | 157.4 | — | References to the “HVF U.S. Fleet Variable Funding Notes” include HVF's Series 2009-1 Variable Funding Rental Car Asset Backed Notes, as amended, or the “Series 2009-1 Notes,” Series 2010-2 Variable Funding Rental Car Asset Backed Notes, or the “Series 2010-2 Notes,” and Series 2011-2 Variable Funding Rental Car Asset Backed Notes, or the “Series 2011-2 Notes,” collectively. As of December 31, 2012, the only U.S. Fleet Variable Funding Notes committed or outstanding were the Series 2009-1 Notes, which, as of December 31, 2012, permit aggregate maximum borrowings of $2,438.8 million (subject to borrowing base availability) on a revolving basis under an asset‑backed variable funding note facility. | ||||||||||||||||||||||||||
Hertz-Sponsored Canadian Securitization | 85 | — | In April 2012, HVF paid the HVF Series 2011-2 notes in full and terminated the related asset-backed variable funding note facility. | ||||||||||||||||||||||||||
Dollar Thrifty-Sponsored Canadian Securitization | 66.9 | — | In May 2012, HVF amended the HVF Series 2009-1 Notes to permit aggregate maximum borrowings of $2,188.0 million (subject to borrowing base availability). | ||||||||||||||||||||||||||
Australian Securitization | 112.3 | — | In October 2012, HVF amended the HVF Series 2009-1 Notes to permit aggregate maximum borrowings of $2,238.8 million (subject to borrowing base availability) and extend the expected final maturity by one year to March 2014. | ||||||||||||||||||||||||||
In December 2012, HVF paid the HVF Series 2010-2 Notes in full and terminated the related asset-backed variable funding note facility. At the same time, HVF amended the HVF Series 2009-1 Notes to permit aggregate maximum borrowings of $2,438.8 million (subject to borrowing base availability). | |||||||||||||||||||||||||||||
Total Fleet Debt | 767.9 | — | HVF U.S. Fleet Medium Term Notes | ||||||||||||||||||||||||||
References to the “HVF U.S. Fleet Medium Term Notes” include HVF's Series 2009-2 Notes, Series 2010-1 Notes and Series 2011-1 Notes, collectively. | |||||||||||||||||||||||||||||
Total | $ | 1,125.20 | $ | 357.3 | Series 2009-2 Notes: In October 2009, HVF issued the Series 2009-2 Rental Car Asset Back Notes, Class A, or the “HVF Series 2009-2 Class A Notes,” in an aggregate original principal amount of $1.2 billion. In June 2010, HVF issued the Subordinated Series 2009-2 Rental Car Asset Backed Notes, Class B, or the “HVF Series 2009-2 Class B Notes,” and together with the Series 2009-2 Class A, or the “HVF Series 2009-2 Notes,” in an aggregate original principal amount of $184.3 million. | ||||||||||||||||||||||||
Series 2010-1 Notes: In July 2010, HVF issued the Series 2010-1 Rental Car Asset Backed Notes, or the “HVF Series 2010-1 Notes,” in an aggregate original principal amount of $749.8 million. | |||||||||||||||||||||||||||||
Series 2011-1 Notes: In June 2011, HVF issued the Series 2011-1 Rental Car Asset Backed Notes, or the “HVF Series 2011-1 Notes,” in an aggregate original principal amount of $598.0 million. | |||||||||||||||||||||||||||||
Our borrowing capacity and availability primarily comes from our "revolving credit facilities," which are a combination of asset-backed securitization facilities and asset-based revolving credit facilities. Creditors under each of our revolving credit facilities have a claim on a specific pool of assets as collateral. Our ability to borrow under each revolving credit facility is a function of, among other things, the value of the assets in the relevant collateral pool. We refer to the amount of debt we can borrow given a certain pool of assets as the "borrowing base." | See Note 18—Subsequent Events. | ||||||||||||||||||||||||||||
RCFC U.S. ABS Program | |||||||||||||||||||||||||||||
We refer to "Remaining Capacity" as the maximum principal amount of debt permitted to be outstanding under the respective facility (i.e., the amount of debt we could borrow assuming we possessed sufficient assets as collateral) less the principal amount of debt then-outstanding under such facility. | Rental Car Finance Corporation, or “RCFC,” became an insolvency remote, indirect, wholly‑owned, special purpose subsidiary of Hertz when Hertz acquired Dollar Thrifty. RCFC is the issuer under the RCFC U.S. ABS Program. RCFC has entered into a base indenture that permits it to issue term and revolving rental car asset-backed securities, the collateral for which consists primarily of a substantial portion of the rental car fleet used in Dollar Thrifty's (and through fleet sharing arrangements, a portion of the fleet used in Hertz's) domestic car rental operations and contractual rights related to such vehicles. | ||||||||||||||||||||||||||||
References to the “RCFC U.S. ABS Program” include RCFC's U.S. Fleet Variable Funding Notes together with RCFC's U.S. Fleet Medium Term Notes. | |||||||||||||||||||||||||||||
We refer to "Availability Under Borrowing Base Limitation" as the lower of Remaining Capacity or the borrowing base less the principal amount of debt then-outstanding under such facility (i.e., the amount of debt we could borrow given the collateral we possess at such time). | RCFC U.S. Fleet Variable Funding Notes | ||||||||||||||||||||||||||||
References to the “RCFC U.S. Fleet Variable Funding Notes” are to the RCFC Series 2010-3 Variable Funding Rental Car Asset Backed Notes, as amended, or the “RCFC Series 2010-3 Notes,” which, as of December 31, 2012, permit aggregate maximum borrowings of $600.0 million (subject to borrowing base availability) on a revolving basis under an asset-backed variable funding note facility. | |||||||||||||||||||||||||||||
As of June 30, 2013, the Senior Term Facility had approximately $0.1 million available under the letter of credit facility and the Senior ABL Facility had $1,006.5 million available under the letter of credit facility sublimit, subject to borrowing base restrictions. | RCFC U.S. Fleet Medium Term Notes | ||||||||||||||||||||||||||||
References to the “RCFC U.S. Fleet Medium Term Notes” include RCFC's Series 2011-1 Notes and RCFC's Series 2011-2 Notes, collectively. | |||||||||||||||||||||||||||||
Substantially all of our revenue earning equipment and certain related assets are owned by special purpose entities, or are encumbered in favor of our lenders under our various credit facilities. | Series 2011-1 Notes: In July 2011, RCFC issued the Series 2011-1 Rental Car Asset Backed Notes, or the “RCFC Series 2011-1 Notes,” in an aggregate original principal amount of $500.0 million. | ||||||||||||||||||||||||||||
Series 2011-2 Notes: In October 2011, RCFC issued the Series 2011-2 Rental Car Asset Backed Notes, or the “RCFC Series 2011-2 Notes,” in an aggregate original principal amount of $400.0 million. | |||||||||||||||||||||||||||||
Some of these special purpose entities are consolidated variable interest entities, of which Hertz is the primary beneficiary, whose sole purpose is to provide commitments to lend in various currencies subject to borrowing bases comprised of rental vehicles and related assets of certain of Hertz International, Ltd.'s subsidiaries. As of June 30, 2013 and December 31, 2012, our International Fleet Financing No. 1 B.V., International Fleet Financing No. 2 B.V. and HA Funding Pty, Ltd. variable interest entities collectively had total assets primarily comprised of loans receivable and revenue earning equipment of $579.3 million and $440.8 million, respectively, and collectively had total liabilities primarily comprised of debt of $578.8 million and $440.3 million, respectively. | Donlen ABS Program | ||||||||||||||||||||||||||||
Donlen GN II Variable Funding Notes | |||||||||||||||||||||||||||||
On September 1, 2011, in connection with our acquisition of Donlen, Donlen's GN II Variable Funding Notes, or the "GN II VFN," remained outstanding and lender commitments thereunder were increased to permit aggregate maximum borrowings of $850.0 million (subject to borrowing base availability). | |||||||||||||||||||||||||||||
In February 2012, Hertz's indirect, wholly-owned subsidiary GN Funding II L.L.C., or “GN II,” amended the GN II VFN to permit aggregate maximum borrowings of $900.0 million (subject to borrowing base availability). | |||||||||||||||||||||||||||||
In July 2012, GN II amended the GN II VFN to extend the expected maturity to December 2012 and to permit aggregate maximum borrowings of $1,000.0 million (subject to borrowing base availability). | |||||||||||||||||||||||||||||
In October 2012, GN II amended the GN II VFN to extend the expected final maturity to December 2013. | |||||||||||||||||||||||||||||
Fleet Debt-Other | |||||||||||||||||||||||||||||
U.S. Fleet Financing Facility | |||||||||||||||||||||||||||||
In September 2006, Hertz and Puerto Ricancars, Inc., a Puerto Rican corporation and wholly‑owned indirect subsidiary of Hertz, or “PR Cars,” entered into a credit agreement that provides for aggregate maximum borrowings of $165.0 million (subject to borrowing base availability) on a revolving basis under an asset‑based revolving credit facility, or the “U.S. Fleet Financing Facility.” The U.S. Fleet Financing Facility is the primary fleet financing for our car rental operations in Hawaii, Kansas, Puerto Rico and the U.S. Virgin Islands. | |||||||||||||||||||||||||||||
The obligations of each of Hertz and PR Cars under the U.S. Fleet Financing Facility are guaranteed by certain of Hertz's direct and indirect domestic subsidiaries. In addition, the obligations of PR Cars under the U.S. Fleet Financing Facility are guaranteed by Hertz. The lenders under the U.S. Fleet Financing Facility have been granted a security interest primarily in the owned rental car fleet used in our car rental operations in Hawaii, Puerto Rico and the U.S. Virgin Islands and certain contractual rights related to rental vehicles in Kansas, Hawaii, Puerto Rico and the U.S. Virgin Islands. | |||||||||||||||||||||||||||||
In September 2011, we extended the maturity of our U.S. Fleet Financing Facility to September 2015 and increased the facility size to $190.0 million. In connection with the extension, we made a number of modifications to the financing arrangement including decreasing the advance rate and increasing pricing. | |||||||||||||||||||||||||||||
European Revolving Credit Facility and European Fleet Notes | |||||||||||||||||||||||||||||
In June 2010, Hertz Holdings Netherlands B.V., an indirect wholly‑owned subsidiary of Hertz organized under the laws of The Netherlands, or “HHN BV,” entered into a credit agreement that provides for aggregate maximum borrowings of €220.0 million (the equivalent of $291.2 million as of December 31, 2012) (subject to borrowing base availability) on a revolving basis under an asset‑based revolving credit facility, or the “European Revolving Credit Facility,” and issued the 8.50% Senior Secured Notes due July 2015, or the “European Fleet Notes,” in an aggregate original principal amount of €400.0 million (the equivalent of $529.4 million as of December 31, 2012). References to the “European Fleet Debt” include HHN BV's European Revolving Credit Facility and the European Fleet Notes, collectively. | |||||||||||||||||||||||||||||
The European Fleet Debt is the primary fleet financing for our car rental operations in Germany, Italy, Spain, Belgium, New Zealand and Luxembourg, and can be expanded to provide fleet financing in Australia, Canada, France, The Netherlands, Switzerland, and the United Kingdom. | |||||||||||||||||||||||||||||
The obligations of HHN BV under the European Fleet Debt are guaranteed by Hertz and certain of Hertz's domestic and foreign subsidiaries. | |||||||||||||||||||||||||||||
The agreements governing the European Revolving Credit Facility and the indenture governing the European Fleet Notes contain covenants that apply to the Hertz credit group similar to those for the Senior Notes. In addition, the agreements and indenture contain a combination of security arrangements, springing covenants and “no liens” covenants intended to give the lenders under the European Fleet Debt enhanced recourse to certain assets of HHN BV and certain foreign subsidiaries of Hertz. The terms of the European Fleet Debt permit HHN BV to incur additional indebtedness that would be pari passu with either the European Revolving Credit Facility or the European Fleet Notes. | |||||||||||||||||||||||||||||
In June 2012, HHN BV amended the European Revolving Credit Facility to extend the maturity date from June 2013 to June 2015. | |||||||||||||||||||||||||||||
European Securitization | |||||||||||||||||||||||||||||
In July 2010, certain foreign subsidiaries entered into a facility agreement that provides for aggregate maximum borrowings of €400.0 million (the equivalent of $529.4 million as of December 31, 2012) (subject to borrowing base availability) on a revolving basis under an asset‑backed securitization facility, or the “European Securitization.” The European Securitization is the primary fleet financing for our car rental operations in France and The Netherlands. The lenders under the European Securitization have been granted a security interest primarily in the owned rental car fleet used in our car rental operations in France and The Netherlands and certain contractual rights related to such vehicles. | |||||||||||||||||||||||||||||
In August 2011, certain foreign subsidiaries extended the expected maturity of our European Securitization Facility to July 2013. In connection with the extension, International Fleet Financing No. 2 B.V. made a number of modifications to the financing arrangement including increasing the advance rate and decreasing pricing. | |||||||||||||||||||||||||||||
In July 2012, International Fleet Financing No. 2 B.V. amended the European Securitization to extend the maturity from July 2013 to July 2014. | |||||||||||||||||||||||||||||
Hertz-Sponsored Canadian Securitization | |||||||||||||||||||||||||||||
In May 2007, certain foreign subsidiaries entered into a facility agreement that provides for aggregate maximum borrowings of CAD$225.0 million (the equivalent of $226.1 million as of December 31, 2012) (subject to borrowing base availability) on a revolving basis under an asset‑backed securitization facility, or as amended, the “Canadian Securitization.” The Canadian Securitization is the primary fleet financing for our car rental operations in Canada. The lender under the Canadian Securitization has been granted an indirect security interest primarily in the owned rental car fleet used in our car rental operations in Canada and certain contractual rights related to such vehicles as well as certain other assets owned by entities connected to the financing. | |||||||||||||||||||||||||||||
In November 2011, Hertz's indirect wholly owned subsidiary HC Limited Partnership extended the maturity of the Canadian Securitization to January 2012 and reduced the facility size to CAD$200.0 million (equivalent to $201.0 million as of December 31, 2012). In connection with the extension, HC Limited Partnership made a number of modifications to the financing arrangement including decreasing the pricing. | |||||||||||||||||||||||||||||
In January 2012, HC Limited Partnership amended the Canadian Securitization to extend the maturity date from January 2012 to March 2012. In March 2012, HC Limited Partnership amended the Canadian Securitization to extend the maturity date from March 2012 to May 2012. In the second quarter of 2012, the maturity date was extended to June 2013. | |||||||||||||||||||||||||||||
Dollar Thrifty-Sponsored Canadian Securitization | |||||||||||||||||||||||||||||
In March 2012 certain foreign subsidiaries of Dollar Thrifty entered into a trust indenture that permits the issuance of term and revolving rental car asset-backed securities, the collateral for which consists primarily of the rental car fleet used in Dollar Thrifty’s Canadian car rental operations and contractual rights related to such vehicles. These subsidiaries became indirect wholly-owned subsidiaries of Hertz when Hertz acquired Dollar Thrifty. | |||||||||||||||||||||||||||||
In March 2012 these subsidiaries issued asset-backed variable funding notes that provide for aggregate maximum borrowings of CAD$150.0 million (the equivalent of $150.7 million as of December 31, 2012) (subject to borrowing base availability) on a revolving basis, or the “Dollar Thrifty-Sponsored Canadian Securitization.” The expected final maturity of the Dollar Thrifty-Sponsored Canadian Securitization is August 2014. | |||||||||||||||||||||||||||||
Australian Securitization | |||||||||||||||||||||||||||||
In November 2010, certain foreign subsidiaries entered into a facility agreement that provides for aggregate maximum borrowings of A$250.0 million (the equivalent of $259.4 million as of December 31, 2012) (subject to borrowing base availability) on a revolving basis under an asset‑backed securitization facility, or the “Australian Securitization.” The Australian Securitization is the primary fleet financing for Hertz's car rental operations in Australia. The lender under the Australian Securitization has been granted a security interest primarily in the owned rental car fleet used in our car rental operations in Australia and certain contractual rights related to such vehicles. In connection with the issuance of the Australian Securitization, an interest rate cap was purchased by a subsidiary, HA Fleet Pty Limited. Concurrently, Hertz sold an offsetting interest rate cap, thereby neutralizing the hedge on a consolidated basis and reducing the net cost of the hedge. | |||||||||||||||||||||||||||||
In October 2012, Hertz's indirect, wholly-owned subsidiary HA Fleet Pty Limited amended the Australian Securitization to extend the expected maturity date thereunder to December 2014 in connection with this transaction both HA Fleet Pty Limited and Hertz amended the existing interest rate caps, modifying and extending the amortization schedule to the new maturity date of the securitization. | |||||||||||||||||||||||||||||
See Note 14—Financial Instruments. | |||||||||||||||||||||||||||||
Brazilian Fleet Financing Facility | |||||||||||||||||||||||||||||
As of December 31, 2012, our Brazilian operating subsidiary is party to certain local financing arrangements, which are collateralized by certain of its assets, which we refer to as the "Brazilian Fleet Financing Facility." | |||||||||||||||||||||||||||||
In June 2012, Hertz caused its Brazilian operating subsidiary to amend the Brazilian Fleet Financing Facility to extend the maturity date from June 2012 to February 2013. | |||||||||||||||||||||||||||||
See Note 18—Subsequent Events. | |||||||||||||||||||||||||||||
Capitalized Leases | |||||||||||||||||||||||||||||
References to the “Capitalized Leases” include the capitalized lease financings outstanding in the United Kingdom, or the “U.K. Leveraged Financing,” Australia, The Netherlands and the United States. The amount available under the U.K. Leveraged Financing, which is the largest portion of the Capitalized Leases, as of December 31, 2012 was £195 million (the equivalent of $314.0 million as of December 31, 2012). | |||||||||||||||||||||||||||||
Restricted Net Assets | |||||||||||||||||||||||||||||
As a result of the contractual restrictions on Hertz's or its subsidiaries' ability to pay dividends (directly or indirectly) under various terms of our debt, as of December 31, 2012, the restricted net assets of our subsidiaries exceeded 25% of our total consolidated net assets. | |||||||||||||||||||||||||||||
Registration Rights | |||||||||||||||||||||||||||||
Hertz entered into exchange and registration rights agreements entered into in connection with (i) the issuance of $250 million in aggregate principal amount of the 6.75% Senior Notes due 2019 in March 2012, and (ii) the release from escrow of the proceeds of $700 million aggregate principal amount of 5.875% Senior Notes due 2020 and $500 million aggregate principal amount of 6.250% Senior Notes due 2022. Pursuant to the terms of these agreements, Hertz agreed to file a registration statement under the Securities Act of 1933, as amended, to permit either the exchange of such notes for registered notes or, in the alternative, the registered resale of such notes. Hertz's failure to meet its obligations under either exchange and registration rights agreement, including by failing to have the registration statement become effective by the date that is 365 days after the respective date of the exchange and registration rights agreement or failing to complete the exchange offer by the date that is 395 days after the date of the exchange and registration rights agreement, will result in Hertz incurring special interest on such notes at a per annum rate of 0.25% for the first 90 days of any period where a default has occurred and is continuing, which rate will be increased by an additional 0.25% during each subsequent 90 day period, up to a maximum of 0.50%. A registration statement on Form S-4 covering the exchange of such notes was declared effective by the SEC on February 1, 2013 and the exchange offer is scheduled to be completed on March 6, 2013, so we do not believe the special interest obligation is probable, and as such, we have not recorded any amounts for special interest with respect to these notes. | |||||||||||||||||||||||||||||
Financial Covenant Compliance | |||||||||||||||||||||||||||||
Under the terms of our Senior Term Facility and Senior ABL Facility, we are not subject to ongoing financial maintenance covenants; however, under the Senior ABL Facility, failure to maintain certain levels of liquidity will subject the Hertz 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, 2012, we were not subject to such contractually specified fixed charge coverage ratio. | |||||||||||||||||||||||||||||
Borrowing Capacity and Availability | |||||||||||||||||||||||||||||
As of December 31, 2012, the following facilities were available for the use of Hertz and its subsidiaries (in millions of dollars): | |||||||||||||||||||||||||||||
Remaining | Availability Under | ||||||||||||||||||||||||||||
Capacity | Borrowing Base | ||||||||||||||||||||||||||||
Limitation | |||||||||||||||||||||||||||||
Corporate Debt | |||||||||||||||||||||||||||||
Senior ABL Facility | $ | 1,183.70 | $ | 1,146.00 | |||||||||||||||||||||||||
Total Corporate Debt | 1,183.70 | 1,146.00 | |||||||||||||||||||||||||||
Fleet Debt | |||||||||||||||||||||||||||||
HVF U.S. Fleet Variable Funding Notes | 88.8 | — | |||||||||||||||||||||||||||
RCFC U.S. Fleet Variable Funding Notes | 81 | — | |||||||||||||||||||||||||||
Donlen GN II Variable Funding Notes | 105 | — | |||||||||||||||||||||||||||
U.S. Fleet Financing Facility | 24 | — | |||||||||||||||||||||||||||
European Revolving Credit Facility | 105.9 | 7.9 | |||||||||||||||||||||||||||
European Securitization | 287.2 | — | |||||||||||||||||||||||||||
Hertz-Sponsored Canadian Securitization | 100.5 | — | |||||||||||||||||||||||||||
Dollar Thrifty-Sponsored Canadian Securitization | 95.5 | — | |||||||||||||||||||||||||||
Australian Securitization | 110.5 | — | |||||||||||||||||||||||||||
Capitalized Leases | 85.1 | 27.5 | |||||||||||||||||||||||||||
Total Fleet Debt | 1,083.50 | 35.4 | |||||||||||||||||||||||||||
Total | $ | 2,267.20 | $ | 1,181.40 | |||||||||||||||||||||||||
Our borrowing capacity and availability primarily comes from our "revolving credit facilities," which are a combination of asset-backed securitization facilities and asset-based revolving credit facilities. Creditors under each of our revolving credit facilities have a claim on a specific pool of assets as collateral. Our ability to borrow under each revolving credit facility is a function of, among other things, the value of the assets in the relevant collateral pool. We refer to the amount of debt we can borrow given a certain pool of assets as the "borrowing base." | |||||||||||||||||||||||||||||
We refer to "Remaining Capacity" as the maximum principal amount of debt permitted to be outstanding under the respective facility (i.e., the amount of debt we could borrow assuming we possessed sufficient assets as collateral) less the principal amount of debt then-outstanding under such facility. | |||||||||||||||||||||||||||||
We refer to "Availability Under Borrowing Base Limitation" as the lower of Remaining Capacity or the borrowing base less the principal amount of debt then-outstanding under such facility (i.e., the amount of debt we could borrow given the collateral we possess at such time). | |||||||||||||||||||||||||||||
As of December 31, 2012, the Senior Term Facility had approximately $8.0 million available under the letter of credit facility and the Senior ABL Facility had $1,010.4 million available under the letter of credit facility sublimit, subject to borrowing base restrictions. | |||||||||||||||||||||||||||||
Substantially all of our revenue earning equipment and certain related assets are owned by special purpose entities, or are encumbered in favor of our lenders under our various credit facilities. | |||||||||||||||||||||||||||||
Some of these special purpose entities are consolidated variable interest entities, of which we are the primary beneficiary, whose sole purpose is to provide commitments to lend in various currencies subject to borrowing bases comprised of rental vehicles and related assets of certain of Hertz International, Ltd.'s subsidiaries. As of December 31, 2012 and December 31, 2011, our International Fleet Financing No. 1 B.V., International Fleet Financing No. 2 B.V. and HA Funding Pty, Ltd. variable interest entities had total assets primarily comprised of loans receivable and revenue earning equipment of $440.8 million and $456.3 million, respectively, and total liabilities primarily comprised of debt of $440.3 million and $455.8 million, respectively. | |||||||||||||||||||||||||||||
Accrued Interest | |||||||||||||||||||||||||||||
As of December 31, 2012 and 2011, accrued interest was $86.4 million and $85.7 million, respectively, which is reflected in our consolidated balance sheet in “Other accrued liabilities.” | |||||||||||||||||||||||||||||
For subsequent events relating to our indebtedness, see Note 18—Subsequent Events. |
Employee_Retirement_Benefits1
Employee Retirement Benefits | 6 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Retirement Benefits | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Retirement Benefits | Employee Retirement Benefits | Employee Retirement Benefits | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The following table sets forth the net periodic pension and postretirement (including health care, life insurance and auto) expense (in millions of dollars): | Qualified U.S. employees, after completion of specified periods of service, are eligible to participate in The Hertz Corporation Account Balance Defined Benefit Pension Plan, or the “Hertz Retirement Plan,” a cash balance plan. Under this qualified Hertz Retirement Plan, we pay the entire cost and employees are not required to contribute. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Most of our international subsidiaries have defined benefit retirement plans or participate in various insured or multiemployer plans. In certain countries, when the subsidiaries make the required funding payments, they have no further obligations under such plans. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Company plans are generally funded, except for certain nonqualified U.S. defined benefit plans and in Germany and France, where unfunded liabilities are recorded. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension Benefits | Postretirement | We sponsor defined contribution plans for certain eligible U.S. and non-U.S. employees. We match contributions of participating employees on the basis specified in the plans. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. | Non-U.S. | Benefits (U.S.) | An amendment to the Hertz Corporation Account Balance Defined Benefit Plan took effect on January 1, 2012. A fixed interest rate of 3% will be applied to cash balance credits in 2012 and later years. Previously, it was the rate published by the Pension Benefit Guarantee Corporation, or “PGBC,” for the December prior to the year the credit was earned. Also effective January 1, 2012, service credit rates for each employee will be determined on the first day of the year. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, | We sponsored a defined benefit pension plan in the U.K. On June 30, 2011, we approved an agreement with the trustees of that plan to cease all future benefit accruals to existing members and to close the plan to new members. Effective July 1, 2011, we introduced a defined contribution plan with company matching contributions to replace the defined benefit pension plan. The company matching contributions are generally 100% of the employee contributions, up to 8% of pay, except that former members of the defined benefit plan receive an enhanced match for five years. This will result in lower contributions this year into the defined benefit plan, which will be offset by matching contributions to the new defined contribution plan. In the year ended December 31, 2011, we recognized a gain of $13.1 million for the U.K. plan that represented unamortized prior service cost from a 2010 amendment that eliminated discretionary pension increases related to pre-1997 service primarily related to inactive employees. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | We also sponsor postretirement health care and life insurance benefits for a limited number of employees with hire dates prior to January 1, 1990. The postretirement health care plan is contributory with participants' contributions adjusted annually. An unfunded liability is recorded. We also have a key officer postretirement car benefit plan that provides the use of a vehicle for retired Senior Vice Presidents and above who have a minimum of 20 years of service and who retired at age 58 or above. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Net Periodic | We use a December 31 measurement date for all of our plans. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefit Cost: | The following tables set forth the funded status and the net periodic pension cost of the Hertz Retirement Plan, other postretirement benefit plans (including health care and life insurance plans covering domestic (“U.S.”) employees and the retirement plans for international operations (“Non-U.S.”), together with amounts included in our consolidated balance sheets and statements of operations (in millions of dollars): | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Service cost | $ | 7.1 | $ | 7 | $ | 0.7 | $ | 0.3 | $ | — | $ | 0.1 | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest cost | 6.9 | 7.4 | 2.3 | 2.3 | 0.1 | 0.2 | Pension Benefits | Postretirement | ||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. | Non-U.S. | Benefits (U.S.) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expected return on plan assets | (7.5 | ) | (8.0 | ) | (3.2 | ) | (3.0 | ) | — | — | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | ||||||||||||||||||||||||||||||||||||||||||||
Change in Benefit Obligation | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net amortizations | 4 | 3.2 | 0.1 | (0.1 | ) | 0.1 | — | Benefit obligation at January 1 | $ | 606.4 | $ | 549.7 | $ | 190.8 | $ | 201.5 | $ | 18.2 | $ | 19 | ||||||||||||||||||||||||||||||||||||||||
Net pension / | Service cost | 24.8 | 26.2 | 1.9 | 4 | 0.2 | 0.2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
postretirement expense | $ | 10.5 | $ | 9.6 | $ | (0.1 | ) | $ | (0.5 | ) | $ | 0.2 | $ | 0.3 | ||||||||||||||||||||||||||||||||||||||||||||||
Interest cost | 28.2 | 27.5 | 9.7 | 11 | 0.8 | 0.9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee contributions | — | — | 0.1 | 0.7 | 0.8 | 0.9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension Benefits | Postretirement | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. | Non-U.S. | Benefits (U.S.) | Plan amendments | — | (10.2 | ) | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | Plan curtailments | — | — | — | (5.9 | ) | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Components of Net Periodic | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefit Cost: | Plan settlements | (5.4 | ) | (7.4 | ) | — | 0.1 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Service cost | $ | 14.4 | $ | 13.3 | $ | 1.3 | $ | 0.6 | $ | 0.1 | $ | 0.2 | ||||||||||||||||||||||||||||||||||||||||||||||||
Benefits paid | (29.9 | ) | (18.4 | ) | (5.5 | ) | (4.0 | ) | (2.2 | ) | (2.2 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest cost | 13.6 | 13.9 | 4.6 | 4.6 | 0.3 | 0.4 | Foreign exchange translation | — | — | 7.7 | (1.0 | ) | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Expected return on plan assets | (15.0 | ) | (15.3 | ) | (6.3 | ) | (6.0 | ) | — | — | Actuarial loss (gain) | 54.8 | 39 | 9.4 | (15.1 | ) | 1.2 | (0.6 | ) | |||||||||||||||||||||||||||||||||||||||||
Net amortizations | 8.3 | 6 | 0.2 | (0.1 | ) | 0.1 | — | Plan combination | — | — | 10.4 | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Net pension / | Other | — | — | (0.1 | ) | (0.5 | ) | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
postretirement expense | $ | 21.3 | $ | 17.9 | $ | (0.2 | ) | $ | (0.9 | ) | $ | 0.5 | $ | 0.6 | ||||||||||||||||||||||||||||||||||||||||||||||
Benefit obligation at December 31 | $ | 678.9 | $ | 606.4 | $ | 224.4 | $ | 190.8 | $ | 19 | $ | 18.2 | ||||||||||||||||||||||||||||||||||||||||||||||||
Our policy for funded plans is to contribute annually, at a minimum, amounts required by applicable laws, regulations and union agreements. From time to time we make contributions beyond those legally required. For the three and six months ended June 30, 2013, we contributed $6.9 million and $10.6 million, respectively, to our worldwide pension plans. For the three and six months ended June 30, 2012, we contributed $11.8 million and $32.2 million, respectively, to our worldwide pension plans. We expect to contribute between $10 million and $20 million to our U.S. plan during the remainder of 2013. 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. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
We also sponsor postretirement health care and life insurance benefits for a limited number of employees with hire dates prior to January 1, 1990. The postretirement health care plan is contributory with participants' contributions adjusted annually. An unfunded liability is recorded. We also have a key officer postretirement car benefit plan that provides the use of a vehicle from our fleet and insurance for the participants' benefit for retired Executive Vice Presidents and above who have a minimum of 20 years of service and who retire at age 58 or above. The assigned car benefit is available for 15 years postretirement or until the participant reaches the age of 80, whichever occurs last. | Change in Plan Assets | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
We participate in various "multiemployer" pension plans. In the event that we withdraw from participation in one of these plans, then applicable law could require us to make an additional lump-sum contribution to the plan, and we would have to reflect that as an expense in our consolidated statement of operations and as a liability on our condensed consolidated balance sheet. Our withdrawal liability for any multiemployer plan would depend on the extent of the plan's funding of vested benefits. At least one multiemployer plan in which we participate is reported to have, and other of our multiemployer plans could have, significant underfunded liabilities. Such underfunding may increase in the event other employers become insolvent or withdraw from the applicable plan or upon the inability or failure of withdrawing employers to pay their withdrawal liability. In addition, such underfunding may increase as a result of lower than expected returns on pension fund assets or other funding deficiencies. The occurrence of any of these events could have a material adverse effect on our consolidated financial position, results of operations or cash flows. | Fair value of plan assets at January 1 | $ | 423.2 | $ | 365.9 | $ | 157 | $ | 152.8 | $ | — | $ | — | |||||||||||||||||||||||||||||||||||||||||||||||
During 2012, Hertz completely withdrew employees from an existing multi-employer pension plan with the Central States Pension Fund, or the "Pension Fund," and entered into a new agreement with the Pension Fund. In connection with the complete withdrawal from the Pension Fund, Hertz was subject to a withdrawal liability of approximately $23.2 million, which was paid in December 2012. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Actual return on plan assets | 64.2 | 15.3 | 15.6 | (7.6 | ) | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Company contributions | 46.3 | 67.8 | 4.7 | 16 | 1.4 | 1.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee contributions | — | — | 0.1 | 0.7 | 0.8 | 0.9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Plan settlements | (5.4 | ) | (7.4 | ) | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefits paid | (29.9 | ) | (18.4 | ) | (5.5 | ) | (4.0 | ) | (2.2 | ) | (2.2 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
Foreign exchange translation | — | — | 6.5 | (0.7 | ) | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | — | — | (0.1 | ) | (0.2 | ) | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value of plan assets at December 31 | $ | 498.4 | $ | 423.2 | $ | 178.3 | $ | 157 | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Funded Status of the Plan | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Plan assets less than benefit obligation | $ | (180.5 | ) | $ | (183.2 | ) | $ | (46.1 | ) | $ | (33.8 | ) | $ | (19.0 | ) | $ | (18.2 | ) | ||||||||||||||||||||||||||||||||||||||||||
Pension Benefits | Postretirement | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. | Non-U.S. | Benefits (U.S.) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2012 | 2011 | 2012 | 2011 | 2012 | 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amounts recognized in balance sheet: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Liabilities | $ | (180.5 | ) | $ | (183.2 | ) | $ | (46.1 | ) | $ | (33.8 | ) | $ | (19.0 | ) | $ | (18.2 | ) | ||||||||||||||||||||||||||||||||||||||||||
Net obligation recognized in the balance sheet | $ | (180.5 | ) | $ | (183.2 | ) | $ | (46.1 | ) | $ | (33.8 | ) | $ | (19.0 | ) | $ | (18.2 | ) | ||||||||||||||||||||||||||||||||||||||||||
Prior service credit (cost) | $ | 9.1 | $ | 10.1 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Net gain (loss) | (167.6 | ) | (160.3 | ) | (17.5 | ) | (10.7 | ) | (2.3 | ) | (1.2 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated other comprehensive loss | (158.5 | ) | (150.2 | ) | (17.5 | ) | (10.7 | ) | (2.3 | ) | (1.2 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
Unfunded accrued pension or postretirement benefit | (22.0 | ) | (33.0 | ) | (28.6 | ) | (23.1 | ) | (16.7 | ) | (17.0 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
Net obligation recognized in the balance sheet | $ | (180.5 | ) | $ | (183.2 | ) | $ | (46.1 | ) | $ | (33.8 | ) | $ | (19.0 | ) | $ | (18.2 | ) | ||||||||||||||||||||||||||||||||||||||||||
Total recognized in other comprehensive (income) loss | $ | 8.3 | $ | 34.5 | $ | 6.8 | $ | 12.2 | $ | 1.1 | $ | (0.7 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Total recognized in net periodic benefit cost and other comprehensive (income) loss | $ | 43.5 | $ | 67.1 | $ | 6.1 | $ | 0.9 | $ | 2.1 | $ | 0.5 | ||||||||||||||||||||||||||||||||||||||||||||||||
Estimated amounts that will be amortized from accumulated other comprehensive (income) loss over the next fiscal year: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net gain (loss) | $ | (16.0 | ) | $ | (11.1 | ) | $ | (0.4 | ) | $ | 0.1 | $ | (0.1 | ) | $ | (0.1 | ) | |||||||||||||||||||||||||||||||||||||||||||
Accumulated Benefit Obligation at December 31 | $ | 619.2 | $ | 537 | $ | 216.8 | $ | 187.6 | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted‑average assumptions as of December 31 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discount rate | 4 | % | 4.7 | % | 4.3 | % | 4.8 | % | 3.6 | % | 4.4 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
Expected return on assets | 7.6 | % | 8 | % | 7.4 | % | 7.4 | % | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||||
Average rate of increase in compensation | 4.6 | % | 4.6 | % | 2 | % | 2.1 | % | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||||
Initial health care cost trend rate | N/A | N/A | N/A | N/A | 7.8 | % | 8.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Ultimate health care cost trend rate | N/A | N/A | N/A | N/A | 4.5 | % | 4.5 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of years to ultimate trend rate | N/A | N/A | N/A | N/A | 17 | 18 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
The discount rate used to determine the December 31, 2012 benefit obligations for U.S. pension plans is based on the rate from the Mercer Pension Discount Curve-Above Mean Yield that is appropriate for the duration of our plan liabilities. For our plans outside the U.S., the discount rate reflects the market rates for an optimized subset of high-quality corporate bonds currently available. The discount rate in a country was determined based on a yield curve constructed from high quality corporate bonds in that country. The rate selected from the yield curve has a duration that matches our plan. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The expected return on plan assets for each funded plan is based on expected future investment returns considering the target investment mix of plan assets. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The following table sets forth the net periodic pension and postretirement (including health care, life insurance and auto) expense (in millions of dollars): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension Benefits | Postretirement | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. | Non-U.S. | Benefits (U.S.) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2012 | 2011 | 2010 | 2012 | 2011 | 2010 | 2012 | 2011 | 2010 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Net Periodic Benefit Cost: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Service cost | $ | 24.8 | $ | 26.2 | $ | 24 | $ | 1.9 | $ | 4 | $ | 5.2 | $ | 0.2 | $ | 0.2 | $ | 0.3 | ||||||||||||||||||||||||||||||||||||||||||
Interest cost | 28.2 | 27.5 | 26.1 | 9.7 | 11 | 9.7 | 0.8 | 0.9 | 0.9 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Expected return on plan assets | (31.5 | ) | (30.5 | ) | (26.6 | ) | (12.1 | ) | (12.8 | ) | (10.0 | ) | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Net amortizations | 11.8 | 7.2 | 4.6 | (0.1 | ) | (0.7 | ) | (1.0 | ) | — | 0.1 | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Settlement loss | 2 | 2.2 | 0.4 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Curtailment gain | — | — | — | — | (12.9 | ) | (0.2 | ) | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Special termination cost | — | — | — | — | 0.1 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net pension and postretirement expense | $ | 35.3 | $ | 32.6 | $ | 28.5 | $ | (0.6 | ) | $ | (11.3 | ) | $ | 3.7 | $ | 1 | $ | 1.2 | $ | 1.2 | ||||||||||||||||||||||||||||||||||||||||
Weighted‑average discount rate for expense (January 1) | 4.71 | % | 5.12 | % | 5.42 | % | 4.78 | % | 5.36 | % | 5.71 | % | 4.4 | % | 4.9 | % | 5.4 | % | ||||||||||||||||||||||||||||||||||||||||||
Weighted‑average assumed long-term rate of return on assets (January 1) | 8 | % | 8.4 | % | 8.5 | % | 7.44 | % | 7.46 | % | 7.46 | % | N/A | N/A | N/A | |||||||||||||||||||||||||||||||||||||||||||||
Initial health care cost trend rate | N/A | N/A | N/A | N/A | N/A | N/A | 8.1 | % | 8.4 | % | 8.7 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
Ultimate health care cost trend rate | N/A | N/A | N/A | N/A | N/A | N/A | 4.5 | % | 4.5 | % | 4.5 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
Number of years to ultimate trend rate | N/A | N/A | N/A | N/A | N/A | N/A | 17 | 18 | 19 | |||||||||||||||||||||||||||||||||||||||||||||||||||
The balance in “Accumulated other comprehensive loss” at December 31, 2012 and 2011 relating to pension benefits was $109.8 million and $99.6 million, respectively. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changing the assumed health care cost trend rates by one percentage point is estimated to have the following effects (in millions of dollars): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
One Percentage Point | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Increase | Decrease | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effect on total of service and interest cost components | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effect on postretirement benefit obligation | $ | 0.5 | $ | (0.4 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
The provisions charged to income for the years ended December 31, 2012, 2011 and 2010 for all other pension plans were approximately $8.9 million, $8.0 million and $8.8 million, respectively. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The provisions charged to income for the years ended December 31, 2012, 2011 and 2010 for the defined contribution plans were approximately $18.6 million, $18.0 million and $14.8 million, respectively. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Plan Assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
We have a long-term investment outlook for the assets held in our Company sponsored plans, which is consistent with the long-term nature of each plan's respective liabilities. We have two major plans which reside in the U.S. and the U.K. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The U.S. Plan, or the “Plan,” currently has a target asset allocation of 65% equity and 35% fixed income. The equity portion of the Plan is invested in one passively managed S&P 500 index fund, one passively managed U.S. small/midcap fund and one actively managed international portfolio. The fixed income portion of the Plan is actively managed by a professional investment manager and is benchmarked to the Barclays Long Govt/Credit Index. The Plan assumes an 7.6% rate of return on assets, which represents the expected long-term annual weighted‑average return for the Plan in total. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The U.K. Plan currently invests in a professionally managed Balanced Consensus Index Fund, which has the investment objective of achieving a total return relatively equal to its benchmark. The benchmark is based upon the average asset weightings of a broad universe of U.K. pension funds invested in pooled investment vehicles and each of their relevant indices. The asset allocation as of December 31, 2012, was 79% equity, 9% fixed income and 12% cash and cash equivalents. The U.K. Plan currently assumes a rate of return on assets of 7.5%, which represents the expected long-term annual weighted‑average return. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The fair value measurements of our U.S. pension plan assets are based upon significant observable inputs (Level 2) and relate to common collective trusts and other pooled investment vehicles consisting of the following asset categories (in millions of dollars): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset Category | 2012 | 2011 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short Term Investments | $ | 8.3 | $ | 11.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Large Cap | 135.9 | 119.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Mid Cap | 42 | 34.9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Small Cap | 31.6 | 27.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
International Large Cap | 109.3 | 89 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed Income Securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasuries | 67.5 | 53.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate Bonds | 83.8 | 68.7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Government Bonds | 4.4 | 4.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Municipal Bonds | 9.1 | 9.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate (REITs) | 6.5 | 5.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total fair value of pension plan assets | $ | 498.4 | $ | 423.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Our U.K. Plan accounts for most of the $178.3 million in fair value of Non-U.S. plan assets. The fair value measurements of our U.K. pension plan assets are based upon significant observable inputs (Level 2) and relate to common collective trusts and other pooled investment vehicles consisting of the following asset categories (in millions of dollars): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset Category | 2012 | 2011 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short Term Investments | $ | 12.9 | $ | 11.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.K. Equities | 66.1 | 57.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Overseas Equities | 67.1 | 60.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.K. Conventional Gilts | 6.5 | 6.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate Bonds | 5.3 | 5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Global Treasury Bonds | 9.3 | 6.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Index‑Linked Gilts‑Stocks | 1.8 | 1.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total fair value of pension plan assets | $ | 169 | $ | 149.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contributions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Our policy for funded plans is to contribute annually, at a minimum, amounts required by applicable laws, regulations and union agreements. From time to time we make contributions beyond those legally required. In 2012, we made discretionary cash contributions to our U.S. qualified pension plan of $38.4 million. In 2011, we made discretionary cash contributions to our U.S. qualified pension plan of $58.9 million. We expect to contribute between $20.0 million and $30.0 million to our U.S. plan during 2013. The level of 2013 and 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. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Estimated Future Benefit Payments | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The following table presents estimated future benefit payments (in millions of dollars): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension Benefits | Postretirement | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefits (U.S.) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2013 | $ | 31.1 | $ | 1.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 34.4 | 1.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2015 | 40.6 | 1.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2016 | 44.3 | 1.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2017 | 51.1 | 1.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2018-2022 | 314.1 | 6.7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 515.6 | $ | 13.6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Multiemployer Pension Plans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
We contribute to several multiemployer defined benefit pension plans under collective bargaining agreements that cover certain of our 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 we cease to have an obligation to contribute to the multiemployer plan in which we had been a contributing employer, we may be required to pay to the plan an amount based on the underfunded status of the plan and on the history of our participation in the plan prior to the cessation of our 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. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Our participation in multiemployer plans for the annual period ended December 31, 2012 is outlined in the table below. For each plan that is individually significant to us, the following information is provided: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The “EIN / Pension Plan Number” column provides the Employer Identification Number and the three‑digit plan number assigned to a plan by the Internal Revenue Service. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The most recent Pension Protection Act Zone Status available for 2011 and 2012 is for plan years that ended in 2011 and 2012, respectively. The zone status is based on information provided to us 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 2012. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The “Surcharge Imposed” column indicates whether our contribution rate for 2012 included an amount in addition the contribution rate specified in the applicable collective bargaining agreement, as imposed by a plan in “critical status,” in accordance with the requirements of the Code. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The last column lists the expiration dates of the collective bargaining agreements pursuant to which we contribute to the plans. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For plans that are not individually significant to us, the total amount of contributions is presented in the aggregate. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In millions of dollars) | EIN /Pension | Pension | FIP / | Contributions by | Surcharge | Expiration | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Plan | Protection Act | RP Status | The Hertz Corporation | Dates of | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Zone Status | Pending / | Collective | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Bargaining | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension Fund | Number | 2012 | 2011 | Implemented | 2012 | 2011 | 2010 | Imposed | Agreements | |||||||||||||||||||||||||||||||||||||||||||||||||||
Western Conference of Teamsters | 91-6145047 | Green | Green | NA | $ | 4.1 | $ | 3.9 | $ | 3.8 | NA | Various | ||||||||||||||||||||||||||||||||||||||||||||||||
Teamsters Central States | 36-6044243 | Critical | Critical | Implemented | 1.2 | 1.3 | 1.2 | No | Various | |||||||||||||||||||||||||||||||||||||||||||||||||||
IAM National | 51-60321295 | Green | Green | NA | 0.7 | 0.6 | 0.6 | NA | Various | |||||||||||||||||||||||||||||||||||||||||||||||||||
Midwest Operating Engineers | 36-6140097 | Green | Green | NA | 0.5 | 0.4 | 0.2 | NA | 2/28/14 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Local 1034** | 13-6594795 | Critical | Critical | Implemented | 0.2 | 0.2 | 0.2 | Yes | 5/2/13 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Operating Engineers Local 324 | 38-1900637 | Critical | Critical | Implemented | 0.1 | 0.1 | 0.1 | No | 6/30/13 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Western Pennsylvania Teamsters | 25-6029946 | Critical | Critical | Implemented | 0.1 | 0.1 | 0.1 | No | 11/4/11 | * | ||||||||||||||||||||||||||||||||||||||||||||||||||
7 Other Plans | 0.6 | 0.6 | 0.5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Contributions | $ | 7.5 | $ | 7.2 | $ | 6.7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
* The parties are still attempting to negotiate a successor agreement. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
** | The amount contributed by Hertz to the Local 1034 Pension Fund was reported as being more than 5% of total contributions to the plan, on the fund's Form 5500 for the year ended 12/31/2011. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
During 2012, Hertz completely withdrew employees from an existing multi-employer pension plan with the Central States Pension Fund, or the “Pension Fund,” and entered into a new agreement with the Pension Fund, which adopted an alternative method for determining an employer's unfunded obligation that would limit Hertz funding obligations to the Pension Fund in the future. As part of the agreement, certain Pension Fund participants were effectively moved to the Hertz retirement plan and the remaining participants were moved to a new pension plan sponsored by the Pension Fund. In connection with the complete withdrawal from the Pension Fund, Hertz was subject to a withdrawal liability of approximately $23.2 million, which was paid in December 2012. |
StockBased_Compensation1
Stock-Based Compensation | 6 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | ||||||||||||||||||||||||||||
Stock-Based Compensation | |||||||||||||||||||||||||||||
Stock-Based Compensation | Stock-Based Compensation | Stock-Based Compensation | |||||||||||||||||||||||||||
In February 2013, Hertz Holdings granted 5,247 Restricted Stock Units, or "RSUs," and 1,707,458 Performance Stock Units, or "PSUs," to certain executives and employees at a grant date fair value of $19.95, under the Hertz Global Holdings, Inc. 2008 Omnibus Incentive Plan, or the "Omnibus Plan." Of the total PSUs awarded 1,136,724 PSUs have a performance condition under which the number of units that will ultimately be awarded will vary from 0% to 150% of the original grant, based on 2013 and combined 2013-2014 Corporate EBITDA results. "EBITDA" means consolidated net income before net interest expense, consolidated income taxes and consolidated depreciation (which includes revenue earning equipment lease charges) and amortization and "Corporate EBITDA," represents EBITDA as adjusted for car rental fleet interest, car rental fleet depreciation and certain other items, as provided in the applicable award agreements. These PSU awards vest evenly over a three year vesting period. Of the total PSUs awarded, 490,632 PSUs have a performance condition under which the number of units that will ultimately be awarded will be 0% to 100% of the original grant. Satisfaction of the performance condition under this grant is contingent upon final 2013 Corporate EBITDA Margin exceeding a minimum level. "Corporate EBITDA Margin" means Corporate EBITDA as a percentage of Consolidated Revenue. These PSU awards vest evenly over a three year vesting period. Of the total PSUs awarded, 83,567 PSUs have a performance condition under which the number of units that will ultimately be awarded will be 0% to 100% of the original grant. Satisfaction of the performance condition under this grant is contingent upon final 2013 Corporate EBITDA Margin exceeding a minimum level. These PSU awards vest evenly over a two year vesting period. The 5,247 RSUs awarded have a two year cliff vesting period. | Plans | ||||||||||||||||||||||||||||
In May 2013, Hertz Holdings granted 166,576 RSUs at a fair value of $23.80. Of the total RSUs awarded, 162,584 vest 33 1/3% annually over three years, and 3,992 RSUs vest after two years. | On February 28, 2008, the Board of Directors of Hertz and Hertz Holdings jointly adopted the Hertz Global Holdings, Inc. 2008 Omnibus Incentive Plan, or the “Omnibus Plan,” which was approved by the stockholders of Hertz Holdings at the annual meeting of stockholders held on May 15, 2008 and amended and restated on May 27, 2010. A maximum of 32.7 million shares are reserved for issuance under the Omnibus Plan. The Omnibus 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 stock, restricted stock units and deferred stock units to key executives, employees and non-management directors. We also granted awards under the Hertz Global Holdings, Inc. Stock Incentive Plan, or the “Stock Incentive Plan,” and the Hertz Global Holdings, Inc. Director Stock Incentive Plan, or the “Director Plan”, or collectively the “Prior Plans.” | ||||||||||||||||||||||||||||
The non-cash stock-based compensation expense associated with the Prior Plans (as defined below) and the Omnibus Plan is pushed down from Hertz Holdings and recorded on the books at the Hertz level. | The Omnibus Plan provides that no further awards will be granted pursuant to the Prior Plans. However, awards that had been previously granted pursuant to the Prior Plans will continue to be subject to and governed by the terms of the Prior Plans. As of December 31, 2012, there were 8.0 million shares of Hertz Holdings' common stock underlying awards outstanding under the Prior Plans. In addition, as of December 31, 2012, there were 9.4 million shares of Hertz Holdings' common stock underlying awards outstanding under the Omnibus Plan. | ||||||||||||||||||||||||||||
A summary of the total compensation expense and associated income tax benefits recognized under our Hertz Global Holdings, Inc. Stock Incentive Plan and Hertz Global Holdings, Inc. Director Stock Incentive Plan, or the "Prior Plans," and the Omnibus Plan, including the cost of stock options, RSUs, and PSUs, is as follows (in millions of dollars): | In addition to the 17.4 million shares underlying outstanding awards as of December 31, 2012, we had 16.9 million shares of Hertz Holdings' common stock available for issuance under the Omnibus Plan. The shares of common stock to be delivered under the Omnibus Plan may consist, in whole or in part, of common stock held in treasury or authorized but unissued shares of common stock, not reserved for any other purpose. | ||||||||||||||||||||||||||||
Shares subject to any award granted under the Omnibus Plan that for any reason are canceled, terminated, forfeited, settled in cash or otherwise settled without the issuance of common stock after the effective date of the Omnibus Plan will generally be available for future grants under the Omnibus Plan. | |||||||||||||||||||||||||||||
In March 2012, Hertz Holdings granted 543,880 Restricted Stock Units, or "RSUs," to certain executives and employees at fair values ranging from $13.65 to $14.47, 747,423 Performance Stock Units, or "PSUs," at a fair value of $13.65, and 1,098,591 PSUs (referred to as Price Vesting Units, or "PVUs") at fair values ranging from $10.13 to $11.26 under the Omnibus Plan. The PSUs have a performance condition under which the number of units that will ultimately be awarded will vary from 0% to 150% of the original grant, based on 2012 and 2013 Hertz Holdings' Corporate EBITDA results. "EBITDA" means consolidated net income before net interest expense, consolidated income taxes and consolidated depreciation (which includes revenue earning equipment lease charges) and amortization. "Corporate EBITDA," represents EBITDA as adjusted for car rental fleet interest, car rental fleet depreciation and certain other items, as provided in the applicable award agreements. Of the PVUs granted, one half will fully vest after three years if Hertz Holdings' stock price appreciates 15% over the starting price established on March 2, 2012, and one half will fully vest after four years if Hertz Holdings' stock price appreciates 25% over the starting price established on March 2, 2012. The starting price for the PVU awards is the average of the 20 trading day closing stock price ending March 2, 2012. Partial attainment of Hertz Holdings' stock appreciation targets will result in partial vesting. The achievement of the market condition for the PVUs is determined based on the average closing stock price for the 20 trading day period ending March 6, 2015 and 2016, respectively. In May 2012, Hertz Holdings granted 146,301 RSUs at a fair value of $15.48, in August 2012, Hertz Holdings granted 59,480 RSUs at a fair value of $12.12, and in November 2012, we granted 24,713 RSUs at a fair value of $13.15. In November 2012, we granted 35,492 non-qualified options with a strike price of $0.17 in exchange for 6,000 Dollar Thrifty options with a strike price of $0.97. | |||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | The non-cash stock-based compensation expense associated with the Prior Plans (as defined below) and the Omnibus Plan is pushed down from Hertz Holdings and recorded on the books at the Hertz level. | |||||||||||||||||||||||||||
June 30, | June 30, | A summary of the total compensation expense and associated income tax benefits recognized under the Prior Plans and the Omnibus Plan, including the cost of stock options, RSUs, and PSUs, is as follows (in millions of dollars): | |||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||
Compensation expense | $ | 11.7 | $ | 7.5 | $ | 19.7 | $ | 15 | |||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||||||
Income tax benefit | (4.5 | ) | (2.9 | ) | (7.6 | ) | (5.8 | ) | 2012 | 2011 | 2010 | ||||||||||||||||||
Total | $ | 7.2 | $ | 4.6 | $ | 12.1 | $ | 9.2 | Compensation expense | $ | 30.3 | $ | 31 | $ | 36.6 | ||||||||||||||
As of June 30, 2013, there was approximately $55.4 million of total unrecognized compensation cost related to non-vested stock options, RSUs and PSUs granted by Hertz Holdings under the Prior Plans and the Omnibus Plan. The total unrecognized compensation cost is expected to be recognized over the remaining 1.7 years, on a weighted average basis, of the requisite service period that began on the grant dates. | Income tax benefit | (11.7 | ) | (12.0 | ) | (14.2 | ) | ||||||||||||||||||||||
Total | $ | 18.6 | $ | 19 | $ | 22.4 | |||||||||||||||||||||||
As of December 31, 2012, there was approximately $38.0 million of total unrecognized compensation cost related to non-vested stock options, RSUs and PSUs granted by Hertz Holdings under the Prior Plans and the Omnibus Plan. The total unrecognized compensation cost is expected to be recognized over the remaining 1.4 years, on a weighted average basis, of the requisite service period that began on the grant dates. | |||||||||||||||||||||||||||||
Stock Options and Stock Appreciation Rights | |||||||||||||||||||||||||||||
All stock options and stock appreciation rights granted under the Omnibus Plan will have a per-share exercise price of not less than the fair market value of one share of Hertz Holdings common stock on the grant date. Stock options and stock appreciation rights 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 of our Board of Directors. No stock options or stock appreciation rights will be exercisable after ten years from the grant date. | |||||||||||||||||||||||||||||
We have accounted for our employee stock‑based compensation awards in accordance with ASC 718, “Compensation-Stock Compensation.” The non-cash stock based compensation expense associated with the Stock Incentive Plan is pushed down from Hertz Holdings and recorded on the books at the Hertz level. The options are being accounted for as equity‑classified awards. We will recognize compensation cost on a straight-line basis over the vesting period. The value of each option award is estimated on the grant date using a Black‑Scholes option valuation model that incorporates the assumptions noted in the following table. Because the stock of Hertz Holdings became publicly traded in November 2006 and had a short trading history, it was not practicable for us to estimate the expected volatility of Hertz Holdings' share price, or a peer company share price, because there was insufficient historical information about past volatility prior to 2012. Therefore, prior to 2012 we used the calculated value method, substituting the historical volatility of an appropriate industry sector index for the expected volatility of Hertz Holdings' common stock price as an assumption in the valuation model. We selected the Dow Jones Specialized Consumer Services sub-sector within the consumer services industry, and we used the U.S. large capitalization component, which includes the top 70% of the index universe (by market value). | |||||||||||||||||||||||||||||
The calculation of the historical volatility of the index was made using the daily historical closing values of the index for the preceding 6.25 years, because that is the expected term of the options using the simplified approach. | |||||||||||||||||||||||||||||
For 2012, we have determined that there was sufficient historical information available to estimate the expected volatility of our share price. Therefore, for 2012 we calculated volatility for Hertz Holdings' stock price based on a weighted average combining implied volatility and the average of our peer’s most recent 5.79-year volatility and mean reversion volatility. | |||||||||||||||||||||||||||||
The risk-free interest rate is the implied zero-coupon yield for U.S. Treasury securities having a maturity approximately equal to the expected term, as of the grant dates. The assumed dividend yield is zero. | |||||||||||||||||||||||||||||
Assumption | 2012 Grants | 2011 Grants | 2010 Grants | ||||||||||||||||||||||||||
Expected volatility | 81.5 | % | 36.7 | % | 36.1 | % | |||||||||||||||||||||||
Expected dividend yield | — | % | — | % | — | % | |||||||||||||||||||||||
Expected term (years) | 3 | 6.25 | 6.25 | ||||||||||||||||||||||||||
Risk-free interest rate | 0.4 | % | 2.56 | % | 1.62%-2.96% | ||||||||||||||||||||||||
Weighted‑average grant date fair value | $ | 14.62 | $ | 5.93 | $ | 4 | |||||||||||||||||||||||
A summary of option activity under the Stock Incentive Plan and the Omnibus Plan as of December 31, 2012 is presented below. | |||||||||||||||||||||||||||||
Options | Shares | Weighted‑ | Weighted‑ | Aggregate Intrinsic | |||||||||||||||||||||||||
Average | Average | Value (In thousands | |||||||||||||||||||||||||||
Exercise | Remaining | of dollars) | |||||||||||||||||||||||||||
Price | Contractual | ||||||||||||||||||||||||||||
Term (years) | |||||||||||||||||||||||||||||
Outstanding at January 1, 2012 | 15,142,061 | $ | 10.6 | 6.3 | $ | 41,110 | |||||||||||||||||||||||
Granted | 35,492 | 0.17 | |||||||||||||||||||||||||||
Exercised | (1,740,447 | ) | 5.75 | ||||||||||||||||||||||||||
Forfeited or Expired | (248,431 | ) | 14.66 | ||||||||||||||||||||||||||
Outstanding at December 31, 2012 | 13,188,675 | 11.13 | 5.4 | $ | 74,681 | ||||||||||||||||||||||||
Exercisable at December 31, 2012 | 10,321,945 | 10.83 | 4.7 | $ | 63,086 | ||||||||||||||||||||||||
A summary of non-vested options as of December 31, 2012, and changes during the year, is presented below. | |||||||||||||||||||||||||||||
Non-vested | Weighted‑ | Weighted‑ | |||||||||||||||||||||||||||
Shares | Average | Average Grant- | |||||||||||||||||||||||||||
Exercise Price | Date Fair | ||||||||||||||||||||||||||||
Value | |||||||||||||||||||||||||||||
Non-vested as of January 1, 2012 | 4,915,825 | $ | 12.04 | $ | 4.86 | ||||||||||||||||||||||||
Granted | 35,492 | 0.17 | 0.17 | ||||||||||||||||||||||||||
Vested | (1,959,032 | ) | 11.56 | 4.59 | |||||||||||||||||||||||||
Forfeited | (125,555 | ) | 11.91 | 4.84 | |||||||||||||||||||||||||
Non-vested as of December 31, 2012 | 2,866,730 | $ | 12.23 | $ | 4.98 | ||||||||||||||||||||||||
Additional information pertaining to option activity under the plans is as follows (in millions of dollars): | |||||||||||||||||||||||||||||
Years ended | |||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||
2012 | 2011 | 2010 | |||||||||||||||||||||||||||
Aggregate intrinsic value of stock options exercised | $ | 15.1 | $ | 15 | $ | 8.1 | |||||||||||||||||||||||
Cash received from the exercise of stock options | 11.2 | 13.1 | 7.9 | ||||||||||||||||||||||||||
Fair value of options that vested | 9 | 17.4 | 21.6 | ||||||||||||||||||||||||||
Tax benefit realized on exercise of stock options | 0.9 | 0.5 | 0.3 | ||||||||||||||||||||||||||
Performance Stock, Performance Stock Units, Restricted Stock and Restricted Stock Units | |||||||||||||||||||||||||||||
Performance stock, PSUs and performance units granted under the Omnibus Plan will vest based on the achievement of pre-determined performance goals over performance periods determined by the Compensation, Nominating and Governance Committee of the Board of Directors of Hertz Holdings. Each of the units granted under the Omnibus Plan represent the right to receive one share of Hertz Holdings' 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 performance stock, performance stock units and performance units will vest to the extent performance goals are achieved at the end of the performance period. Restricted Stock and 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, Nominating and Governance Committee of the Board of Directors of Hertz Holdings. | |||||||||||||||||||||||||||||
A summary of RSU and PSU activity under the Omnibus Plan as of December 31, 2012 is presented below. | |||||||||||||||||||||||||||||
Shares | Weighted‑ | Aggregate Intrinsic | |||||||||||||||||||||||||||
Average | Value (In thousands | ||||||||||||||||||||||||||||
Fair Value | of dollars) | ||||||||||||||||||||||||||||
Outstanding at January 1, 2012 | 4,327,461 | $ | 6.46 | $ | 50,718 | ||||||||||||||||||||||||
Granted | 869,894 | 13.78 | — | ||||||||||||||||||||||||||
Vested | (3,198,219 | ) | 4.58 | — | |||||||||||||||||||||||||
Forfeited or Expired | (126,502 | ) | 13.19 | — | |||||||||||||||||||||||||
Outstanding at December 31, 2012 | 1,872,634 | $ | 12.62 | $ | 30,468 | ||||||||||||||||||||||||
Additional information pertaining to RSU and PSU activity is as follows: | |||||||||||||||||||||||||||||
Years ended December 31, | |||||||||||||||||||||||||||||
2012 | 2011 | 2010 | |||||||||||||||||||||||||||
Total fair value of awards that vested ($ millions) | $ | 14.6 | $ | 9.6 | $ | 8.2 | |||||||||||||||||||||||
Weighted average grant date fair value of awards | $ | 13.78 | $ | 14.78 | $ | 10.1 | |||||||||||||||||||||||
Compensation expense for RSUs and PSUs is based on the grant date fair value, and is recognized ratably over the vesting period. For grants in 2010, 2011 and 2012, the vesting period is three years (for grants in 2010 and 2011, 25% in the first year, 25% in the second year and 50% in the third year and for grants in 2012, 33 1/3% per year). In addition to the service vesting condition, the PSUs had an additional vesting condition which called for the number of units that will be awarded being based on achievement of a certain level of Corporate EBITDA over the applicable measurement period. | |||||||||||||||||||||||||||||
In March 2012, Hertz Holdings granted 1,846,014 PSUs that had a performance vesting condition under which the number of units that will ultimately be awarded will vary from 0% to 150% of the original grant, based on the sum of 2012 and 2013 Corporate EBITDA results, in addition to a service vesting condition. In March 2011 Hertz Holdings' granted 499,515 PSUs that had a performance vesting condition under which the number of units that will ultimately be awarded will vary from 0% to 150% of the original grant, based on the sum of 2011 and 2012 Corporate EBITDA results, in addition to a service vesting condition. An additional 193,798 PSUs granted in March 2011 contained a market condition whereby the 20 trading day average trailing Hertz Holdings' stock price must equal or exceed a certain price target at any time during the five year performance period, in addition to a service vesting condition. A summary of the PSU activity for this grant is presented below. | |||||||||||||||||||||||||||||
Shares | Weighted‑ | Aggregate Intrinsic | |||||||||||||||||||||||||||
Average | Value (In thousands | ||||||||||||||||||||||||||||
Fair Value | of dollars) | ||||||||||||||||||||||||||||
Outstanding at January 1, 2012 | 677,971 | $ | 13.34 | $ | 7,946 | ||||||||||||||||||||||||
Granted | 1,846,014 | 11.89 | — | ||||||||||||||||||||||||||
Vested | (124,874 | ) | 14.6 | — | |||||||||||||||||||||||||
Forfeited or Expired | (100,438 | ) | 11.87 | — | |||||||||||||||||||||||||
Outstanding at December 31, 2012 | 2,298,673 | $ | 12.18 | $ | 37,399 | ||||||||||||||||||||||||
Employee Stock Purchase Plan | |||||||||||||||||||||||||||||
On February 28, 2008, upon recommendation of the compensation committee of the Board of Directors, or “Committee,” of Hertz Holdings, Hertz Holdings' Board of Directors adopted the Hertz Global Holdings, Inc. Employee Stock Purchase Plan, or the “ESPP,” and the plan was approved by the stockholders of Hertz Holdings on May 15, 2008. The ESPP is intended to be an “employee stock purchase plan” within the meaning of Section 423 of the Internal Revenue Code. | |||||||||||||||||||||||||||||
The maximum number of shares that may be purchased under the ESPP is 3,000,000 shares of Hertz Holdings' common stock, subject to adjustment in the case of any change in Hertz Holdings' shares, including by reason of a stock dividend, stock split, share combination, recapitalization, reorganization, merger, consolidation or change in corporate structure. An eligible employee may elect to participate in the ESPP each quarter (or other period established by the Committee) through a payroll deduction. The maximum and minimum contributions that an eligible employee may make under all of Hertz Holdings' qualified employee stock purchase plans will be determined by the Committee, provided that no employee may be permitted to purchase stock with an aggregate fair market value greater than $25,000 per year. At the end of the offering period, the total amount of each employee's payroll deduction will be used to purchase shares of Hertz Holdings' common stock. The purchase price per share will be not less than 85% of the market price of Hertz Holdings' common stock on the date of purchase; the exact percentage for each offering period will be set in advance by the Committee. | |||||||||||||||||||||||||||||
For the years ended December 31, 2012, 2011 and 2010, we recognized compensation cost of approximately $0.8 million, $0.7 million and $0.6 million, respectively, for the amount of the discount on the stock purchased by our employees under the ESPP. Approximately 1,800 employees participated in the ESPP as of December 31, 2012. |
Depreciation_of_Revenue_Earnin4
Depreciation of Revenue Earning Equipment and Lease Charges | 6 Months Ended | 12 Months Ended | ||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | |||||||||||||||||||
Depreciation of Revenue Earning Equipment and Lease Charges | ||||||||||||||||||||
Depreciation of Revenue Earning Equipment and Lease Charges | Depreciation of Revenue Earning Equipment and Lease Charges | Depreciation of Revenue Earning Equipment and Lease Charges | ||||||||||||||||||
Depreciation of revenue earning equipment and lease charges includes the following (in millions of dollars): | Depreciation of revenue earning equipment and lease charges includes the following (in millions of dollars): | |||||||||||||||||||
Three Months Ended | Years Ended December 31, | |||||||||||||||||||
June 30, | 2012 | 2011 | 2010 | |||||||||||||||||
2013 | 2012 | Depreciation of revenue earning equipment | $ | 2,165.20 | $ | 1,921.80 | $ | 1,747.00 | ||||||||||||
Depreciation of revenue earning equipment | $ | 611.8 | $ | 539.5 | ||||||||||||||||
Adjustment of depreciation upon disposal of revenue earning equipment | (96.8 | ) | (112.2 | ) | 42.9 | |||||||||||||||
Adjustment of depreciation upon disposal of revenue earning equipment | 11.3 | (41.2 | ) | |||||||||||||||||
Rents paid for vehicles leased | 79.8 | 96.1 | 78.2 | |||||||||||||||||
Rents paid for vehicles leased | 18 | 21.5 | ||||||||||||||||||
Total | $ | 2,148.20 | $ | 1,905.70 | $ | 1,868.10 | ||||||||||||||
Total | $ | 641.1 | $ | 519.8 | ||||||||||||||||
The adjustment of depreciation upon disposal of revenue earning equipment for the year ended December 31, 2012, 2011 and 2010, included net gains of $83.2 million and $98.9 million and net loss of $32.9 million, respectively, on the disposal of vehicles used in our car rental operations and net gains of $13.5 million and $13.3 million and net loss of $10.0 million, respectively, on the disposal of industrial and construction equipment used in our equipment rental operations. | ||||||||||||||||||||
Depreciation rates are reviewed on a quarterly basis based on management's routine review of present and estimated future market conditions and their effect on residual values at the time of disposal. During the year ended December 31, 2012, depreciation rates being used to compute the provision for depreciation of revenue earning equipment were adjusted on certain vehicles in our car rental operations to reflect changes in the estimated residual values to be realized when revenue earning equipment is sold. These depreciation rate changes resulted in net decreases of $130.6 million and $13.8 million and a net increase of $19.1 million in depreciation expense for the years ended December 31, 2012, 2011 and 2010 respectively. The cumulative effect of the reduction in rates was indicative of the strong residual values experienced in the U.S. for the years ended December 31, 2012 and 2011. In 2012, 2011 and 2010, the depreciation rate changes in certain of our equipment rental operations resulted in an increase of $0.5 million, decrease of $4.4 million and increase of $3.6 million in depreciation expense, respectively. | ||||||||||||||||||||
Six Months Ended | ||||||||||||||||||||
June 30, | ||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
Depreciation of revenue earning equipment | $ | 1,184.80 | $ | 1,070.90 | ||||||||||||||||
Adjustment of depreciation upon disposal of revenue earning equipment | 10 | (80.6 | ) | |||||||||||||||||
Rents paid for vehicles leased | 33.3 | 44.6 | ||||||||||||||||||
Total | $ | 1,228.10 | $ | 1,034.90 | ||||||||||||||||
The adjustment of depreciation upon disposal of revenue earning equipment for the three months ended June 30, 2013 and 2012, included net losses of $17.5 million and net gains of $38.3 million, respectively, on the disposal of vehicles used in our car rental operations and gains of $6.2 million and $2.9 million, respectively, on the disposal of industrial and construction equipment used in our equipment rental operations. The adjustment of depreciation upon disposal of revenue earning equipment for the six months ended June 30, 2013 and 2012, included net losses of $20.8 million and net gains of $73.2 million, respectively, on the disposal of vehicles used in our car rental operations and net gains of $10.8 million and $7.4 million, respectively, on the disposal of industrial and construction equipment used in our equipment rental operations. | ||||||||||||||||||||
Depreciation rates are reviewed on a quarterly basis based on management's routine review of present and estimated future market conditions and their effect on residual values at the time of disposal. During the six months ended June 30, 2013, depreciation rates being used to compute the provision for depreciation of revenue earning equipment were adjusted on certain vehicles in our car rental operations to reflect changes in the estimated residual values to be realized when revenue earning equipment is sold. These depreciation rate changes resulted in net decreases of $14.8 million and $15.5 million in depreciation expense for the three-month and six-month periods ended June 30, 2013, respectively. Prospective changes include the impact of car sales channel diversification and acceleration of our retail sales expansion. During the three-month and six-month periods ended June 30, 2013, the depreciation rate changes in certain of our equipment rental operations resulted in a net decrease of $0.1 million and $0.0 million, respectively, in depreciation expense. |
Taxes_on_Income1
Taxes on Income | 6 Months Ended | 12 Months Ended | ||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | |||||||||||||
Taxes on Income | ||||||||||||||
Taxes on Income | Taxes on Income | Taxes on Income | ||||||||||||
The effective tax rate for the three months ended June 30, 2013 and 2012 was 42.4% and 41.2%, respectively. The effective tax rate for the six months ended June 30, 2013 and 2012 was 49.8% and 64.3%, respectively. The effective tax rate for the full fiscal year 2013 is expected to be approximately 41%. The provision for taxes on income of $95.8 million for the three months ended June 30, 2013 increased from $70.7 million for the three months ended June 30, 2012, primarily due to higher income before income taxes, changes in geographic earnings mix and changes in losses in certain non-U.S. jurisdictions for which tax benefits are not realized, and non-deductible acquisition costs related to the China transaction. The provision for taxes on income of $155.3 million for the six months ended June 30, 2013 increased from $94.9 million for the six months ended June 30, 2012, primarily due to higher income before income taxes, changes in geographic earnings mix and changes in losses in certain non-U.S. jurisdictions for which tax benefits are not realized, and non-deductible acquisition costs related to the China transaction. | The components of income (loss) before income taxes for the periods were as follows (in millions of dollars): | |||||||||||||
Years ended December 31, | ||||||||||||||
2012 | 2011 | 2010 | ||||||||||||
Domestic | $ | 407.7 | $ | 235.9 | $ | (81.2 | ) | |||||||
Foreign | 95.2 | 138 | 113.5 | |||||||||||
Total | $ | 502.9 | $ | 373.9 | $ | 32.3 | ||||||||
The total provision (benefit) for taxes on income consists of the following (in millions of dollars): | ||||||||||||||
Years ended December 31, | ||||||||||||||
2012 | 2011 | 2010 | ||||||||||||
Current: | ||||||||||||||
Federal | $ | 20.1 | $ | 10.3 | $ | 10.2 | ||||||||
Foreign | 32.3 | 30.6 | 41.5 | |||||||||||
State and local | 39.1 | 28.5 | 1.5 | |||||||||||
Total current | 91.5 | 69.4 | 53.2 | |||||||||||
Deferred: | ||||||||||||||
Federal | 141.9 | 82.4 | (18.6 | ) | ||||||||||
Foreign | 11.9 | (3.2 | ) | 1.3 | ||||||||||
State and local | (18.2 | ) | (4.8 | ) | (2.6 | ) | ||||||||
Total deferred | 135.6 | 74.4 | (19.9 | ) | ||||||||||
Total provision (benefit) | $ | 227.1 | $ | 143.8 | $ | 33.3 | ||||||||
The principal items of the U.S. and foreign net deferred tax assets and liabilities at December 31, 2012 and 2011 are as follows (in millions of dollars): | ||||||||||||||
2012 | 2011 | |||||||||||||
Deferred Tax Assets: | ||||||||||||||
Employee benefit plans | $ | 103.6 | $ | 102.8 | ||||||||||
Net operating loss carryforwards | 1,610.90 | 1,743.50 | ||||||||||||
Foreign tax credit carryforwards | 20.8 | 20.8 | ||||||||||||
Federal, state and foreign local tax credit carryforwards | 26.8 | 15 | ||||||||||||
Accrued and prepaid expenses | 341.7 | 327.4 | ||||||||||||
Total Deferred Tax Assets | 2,103.80 | 2,209.50 | ||||||||||||
Less: Valuation Allowance | (226.4 | ) | (186.7 | ) | ||||||||||
Total Net Deferred Tax Assets | 1,877.40 | 2,022.80 | ||||||||||||
Deferred Tax Liabilities: | ||||||||||||||
Depreciation on tangible assets | (3,081.4 | ) | (2,742.3 | ) | ||||||||||
Intangible assets | (1,477.1 | ) | (942.4 | ) | ||||||||||
Total Deferred Tax Liabilities | (4,558.5 | ) | (3,684.7 | ) | ||||||||||
Net Deferred Tax Liability | $ | (2,681.1 | ) | $ | (1,661.9 | ) | ||||||||
As of December 31, 2012, deferred tax assets of $1,294.3 million were recorded for unutilized U.S. Federal Net Operating Losses, or “NOL,” carry forwards of $3,697.9 million. The total Federal NOL carry forwards are $3,775.0 million of which $77.1 million relate 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 $27.0 million will be recorded to Additional paid-in capital. The Federal NOLs begin to expire in 2025. State NOLs exclusive of the effects of the excess tax deductions, have generated a deferred tax asset of $105.8 million. The state NOLs expire over various years beginning in 2013 depending upon particular jurisdiction. | ||||||||||||||
On January 1, 2009, Bank of America acquired Merrill Lynch. For U.S. income tax purposes the transaction, when combined with other unrelated transactions during the previous 36 months, resulted in a change in control as that term is defined in Section 382 of the Internal Revenue Code. Consequently, utilization of all pre-2009 U.S. net operating losses is subject to an annual limitation. We have calculated the expected annual base limitation as well as additional limitations resulting from a net unrealized built in gain as of the acquisition date and other adjustments. Based on the calculations, the limitation is not expected to result in a loss of net operating losses or have a material adverse impact on taxes. | ||||||||||||||
As of December 31, 2012, deferred tax assets of $248.5 million were recorded for foreign NOL carry forwards of $1,049.0 million. A valuation allowance of $200.6 million at December 31, 2012 was recorded against these deferred tax assets because those assets relate to jurisdictions that have historical losses and the likelihood exists that a portion of the NOL carry forwards may not be utilized in the future. | ||||||||||||||
The foreign NOL carry forwards of $1,049.0 million include $775.5 million which have an indefinite carry forward period and associated deferred tax assets of $170.6 million. The remaining foreign NOLs of $273.5 million are subject to expiration beginning in 2015 and have associated deferred tax assets of $77.9 million. | ||||||||||||||
As of December 31, 2012, deferred tax assets for U.S. Foreign Tax Credit carry forwards were $20.8 million which relate to credits generated as of December 31, 2007. The carry forwards will begin to expire in 2015. A valuation allowance of $13.5 million at December 31, 2012 was recorded against a portion of the U.S. foreign tax credit deferred tax assets in the likelihood that they may not be utilized in the future. A deferred tax asset was also recorded for various state tax credit carry forwards of $3.0 million, which will begin to expire in 2027. | ||||||||||||||
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 carry forwards and estimates of projected future taxable income. Based on the assessment, as of December 31, 2012, total valuation allowances of $226.4 million were recorded against deferred tax assets. Although realization is not assured, we have concluded that it is more likely than not the remaining deferred tax assets of $1,877.4 million will be realized and as such no valuation allowance has been provided on these assets. | ||||||||||||||
The significant items in the reconciliation of the statutory and effective income tax rates consisted of the following: | ||||||||||||||
Years ended December 31, | ||||||||||||||
2012 | 2011 | 2010 | ||||||||||||
Statutory Federal Tax Rate | 35 | % | 35 | % | 35 | % | ||||||||
Foreign tax differential | (3.2 | ) | (3.3 | ) | (32.1 | ) | ||||||||
State and local income taxes, net of federal income tax benefit | 2.9 | 3.2 | (5.2 | ) | ||||||||||
Change in state statutory rates, net of federal income tax benefit | (1.0 | ) | 0.5 | 5.1 | ||||||||||
Federal and foreign permanent differences | 2.3 | (1.1 | ) | (24.0 | ) | |||||||||
Withholding taxes | 1.7 | 2 | 26.2 | |||||||||||
Uncertain tax positions | (0.6 | ) | (0.8 | ) | 11.2 | |||||||||
Change in valuation allowance | 7.9 | 0.6 | 85.1 | |||||||||||
All other items, net | 0.2 | 2.4 | 1.8 | |||||||||||
Effective Tax Rate | 45.2 | % | 38.5 | % | 103.1 | % | ||||||||
The effective tax rate for the year ended December 31, 2012 was 45.2% as compared to 38.5% in the year ended December 31, 2011. The provision for taxes on income increased $83.3 million, primarily due to higher income before income taxes, changes in geographic earnings mix, changes in valuation allowances for losses in certain non-U.S. jurisdictions for which tax benefits cannot be realized and non-deductible compensation payments under Internal Revenue Code Section 280(G) related to the Dollar Thrifty acquisition. | ||||||||||||||
The negative effective tax rate in 2010 is primarily due to a lower loss before income taxes in 2010, valuation allowances for losses in certain non-U.S. jurisdictions for which tax benefits cannot be realized and differences in foreign tax rates versus the U.S. Federal tax rate and the impact of the France law change in 2010. | ||||||||||||||
As of December 31, 2012, our foreign subsidiaries have $270.3 million of undistributed earnings which would 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 undistributed earnings offshore. It is not practicable to estimate the amount of such deferred tax liabilities. 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, deferred tax liabilities will be recorded. | ||||||||||||||
As of December 31, 2012, total unrecognized tax benefits were $17.2 million, all of which, if recognized, would favorably impact the effective tax rate in future periods. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in millions of dollars): | ||||||||||||||
2012 | 2011 | 2010 | ||||||||||||
Balance at January 1 | $ | 21.6 | $ | 27.2 | $ | 25.6 | ||||||||
Increase (decrease) attributable to tax positions taken during prior periods | (6.8 | ) | (9.5 | ) | 0.3 | |||||||||
Increase attributable to tax positions taken during the current year | 2.4 | 3.9 | 1.3 | |||||||||||
Decrease attributable to settlements with taxing authorities | — | — | — | |||||||||||
Balance at December 31 | $ | 17.2 | $ | 21.6 | $ | 27.2 | ||||||||
We conduct business globally and, as a result, file one or more income tax returns in the U.S. and non-U.S. jurisdictions. In the normal course of business we are subject to examination by taxing authorities throughout the world. The open tax years for these jurisdictions span from 2003 to 2012. We are currently under audit by the Internal Revenue Service for tax years 2006 to 2009. Several U.S. state and non-U.S. jurisdictions are under audit. | ||||||||||||||
In many cases the uncertain tax positions are related to tax years that remain subject to examination by the relevant taxing authorities. It is reasonable that approximately $6.8 million of unrecognized tax benefits may reverse within the next twelve months due to settlement with the relevant taxing authorities and/or the filing of amended income tax returns. | ||||||||||||||
Net, after-tax interest and penalties related to the liabilities for unrecognized tax benefits are classified as a component of “Provision for taxes on income” in the consolidated statement of operations. During the years ended December 31, 2012, 2011 and 2010, approximately $0.6 million, $1.9 million and $0.2 million, respectively, in net, after-tax interest and penalties were recognized. As of December 31, 2012 and 2011, approximately $4.2 million and $3.7 million, respectively, of net, after-tax interest and penalties was accrued in our consolidated balance sheet within "Accrued taxes." |
Lease_and_Concession_Agreement
Lease and Concession Agreements | 12 Months Ended | |||||||||||
Dec. 31, 2012 | ||||||||||||
Lease and Concession Agreements | ||||||||||||
Lease and Concession Agreements | Lease and Concession Agreements | |||||||||||
We have various concession agreements, which provide for payment of rents and a percentage of revenue with a guaranteed minimum, and real estate leases under which the following amounts were expensed (in millions of dollars): | ||||||||||||
Years ended December 31, | ||||||||||||
2012 | 2011 | 2010 | ||||||||||
Rents | $ | 135.9 | $ | 130.6 | $ | 133.9 | ||||||
Concession fees: | ||||||||||||
Minimum fixed obligations | 249.6 | 248.7 | 252 | |||||||||
Additional amounts, based on revenues | 329.4 | 311.8 | 278.7 | |||||||||
Total | $ | 714.9 | $ | 691.1 | $ | 664.6 | ||||||
For the years ended December 31, 2012, 2011 and 2010, sublease income reduced rent expense included in the above table by $5.0 million, $5.0 million and $4.5 million, respectively. | ||||||||||||
As of December 31, 2012, minimum obligations under existing agreements referred to above are approximately as follows (in millions of dollars): | ||||||||||||
Rents | Concessions | |||||||||||
2013 | $ | 157.3 | $ | 390.3 | ||||||||
2014 | 128.7 | 279.4 | ||||||||||
2015 | 99.3 | 192.8 | ||||||||||
2016 | 74.7 | 141.4 | ||||||||||
2017 | 50.4 | 91.3 | ||||||||||
Years after 2017 | 194.1 | 509.7 | ||||||||||
The future minimum rent payments in the above table have been reduced by minimum future sublease rental inflows in aggregate of $21.2 million. | ||||||||||||
Many of our concession agreements and real estate leases require us to pay or reimburse operating expenses, such as common area charges and real estate taxes, to pay concession fees above guaranteed minimums or additional rent based on a percentage of revenues or sales (as defined in those agreements) arising at the relevant premises, or both. Such obligations are not reflected in the table of minimum future obligations appearing immediately above. We operate from various leased premises under operating leases with terms up to 25 years. A number of our operating leases contain renewal options. These renewal options vary, but the majority include clauses for renewal for various term lengths at various rates, both fixed and market. | ||||||||||||
In addition to the above, we have various leases on revenue earning equipment and office and computer equipment under which the following amounts were expensed (in millions of dollars): | ||||||||||||
Years ended December 31, | ||||||||||||
2012 | 2011 | 2010 | ||||||||||
Revenue earning equipment | $ | 79.8 | $ | 96.1 | $ | 78.2 | ||||||
Office and computer equipment | 12.2 | 10.1 | 10.4 | |||||||||
Total | $ | 92 | $ | 106.2 | $ | 88.6 | ||||||
As of December 31, 2012, minimum obligations under existing agreements referred to above that have a maturity of more than one year are as follows (in millions of dollars): | ||||||||||||
2013 | $ | 56.6 | ||||||||||
2014 | $ | 25.2 | ||||||||||
2015 | $ | 6.7 | ||||||||||
2016 | $ | 2.1 | ||||||||||
2017 | $ | — | ||||||||||
After 2017 | $ | — | ||||||||||
Commitments under capital leases within our vehicle rental programs have been reflected in Note 5—Debt. |
Segment_Information1
Segment Information | 6 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | |||||||||||||||||||||||||||
Segment Information | ||||||||||||||||||||||||||||
Segment Information | Segment Information | Segment Information | ||||||||||||||||||||||||||
Our operating segments are aggregated into reportable business segments based primarily upon similar economic characteristics, products, services, customers, and delivery methods. We have identified two reportable segments: rental and leasing of cars, crossovers and light trucks, or "car rental," and rental of industrial, construction, material handling and other equipment, or "equipment rental." Other reconciling items include general corporate assets and expenses, certain interest expense (including net interest on corporate debt), as well as other business activities. Donlen is included in the car rental reportable segment. | Our operating segments are aggregated into reportable business segments based primarily upon similar economic characteristics, products, services, customers, and delivery methods. We have identified two reportable segments: rental and leasing of cars, crossovers and light trucks, or “car rental,” and rental of industrial, construction and material handling equipment, or “equipment rental.” Other reconciling items includes general corporate assets and expenses, certain interest expense (including net interest on corporate debt), as well as other business activities, such as our third party claim management services. | |||||||||||||||||||||||||||
Adjusted pre-tax income is calculated as income before income taxes plus non-cash purchase accounting charges, non-cash debt charges relating to the amortization and write-off of debt financing costs and debt discounts and certain one-time charges and non-operational items. Adjusted pre-tax income is important to management because it allows management to assess operational performance of our business, exclusive of the items mentioned above. It also allows management to assess the performance of the entire business on the same basis as the segment measure of profitability. Management believes that it is important to investors for the same reasons it is important to management and because it allows them to assess our operational performance on the same basis that management uses internally. The contribution of our reportable segments to revenues and adjusted pre-tax income and the reconciliation to consolidated amounts are summarized below (in millions of dollars). | Adjusted pre-tax income (loss) is the measure utilized by management in making decisions about allocating resources to segments and measuring their performance. We believe this measure best reflects the financial results from ongoing operations. Adjusted pre-tax income (loss) is calculated as income (loss) before income taxes plus other reconciling items, non-cash purchase accounting charges, non-cash debt charges and certain one-time charges and non-operational items. The contribution of our reportable segments for the years ended December 31, 2012, 2011 and 2010 is summarized below (in millions of dollars). | |||||||||||||||||||||||||||
Three Months Ended June 30, | Years ended December 31, | |||||||||||||||||||||||||||
Revenues | Adjusted Pre-Tax Income | 2012 | 2011 | 2010 | ||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | Revenues | ||||||||||||||||||||||||
Car rental | $ | 2,329.50 | $ | 1,889.60 | $ | 363 | $ | 277.4 | Car rental | $ | 7,633.00 | $ | 7,083.50 | $ | 6,486.20 | |||||||||||||
Equipment rental | 384.3 | 335 | 74.1 | 42.5 | Equipment rental | 1,385.40 | 1,209.50 | 1,070.10 | ||||||||||||||||||||
Total reportable segments | 2,713.80 | 2,224.60 | 437.1 | 319.9 | Other reconciling items | 2.4 | 5.4 | 6.2 | ||||||||||||||||||||
Other | 0.8 | 0.5 | Total | $ | 9,020.80 | $ | 8,298.40 | $ | 7,562.50 | |||||||||||||||||||
Total | $ | 2,714.60 | $ | 2,225.10 | Adjusted pre-tax income(a) | |||||||||||||||||||||||
Car rental | $ | 1,020.10 | $ | 850.2 | $ | 641.9 | ||||||||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||||
Other reconciling items(1) | (116.2 | ) | (79.8 | ) | Equipment rental | $ | 227 | $ | 161.6 | $ | 78 | |||||||||||||||||
Purchase accounting(2) | (33.1 | ) | (29.0 | ) | Depreciation of revenue earning equipment and lease charges | |||||||||||||||||||||||
Car rental | $ | 1,876.10 | $ | 1,651.40 | $ | 1,594.60 | ||||||||||||||||||||||
Non-cash debt charges(3) | (12.1 | ) | (13.9 | ) | ||||||||||||||||||||||||
Equipment rental | 272.1 | 254.3 | 273.5 | |||||||||||||||||||||||||
Restructuring charges | (17.6 | ) | (16.1 | ) | ||||||||||||||||||||||||
Total | $ | 2,148.20 | $ | 1,905.70 | $ | 1,868.10 | ||||||||||||||||||||||
Restructuring related charges(4) | (8.6 | ) | (5.0 | ) | ||||||||||||||||||||||||
Depreciation of property and equipment | ||||||||||||||||||||||||||||
Integration expenses(5) | (9.2 | ) | — | Car rental | $ | 126.9 | $ | 116.1 | $ | 112.3 | ||||||||||||||||||
Derivative gains (losses)(6) | (0.1 | ) | — | Equipment rental | 34.1 | 33.7 | 34.3 | |||||||||||||||||||||
Acquisition related costs | (9.1 | ) | (4.5 | ) | Other reconciling items | 11.6 | 8.2 | 7.4 | ||||||||||||||||||||
Other(7) | (5.4 | ) | — | Total | $ | 172.6 | $ | 158 | $ | 154 | ||||||||||||||||||
Income before income taxes | $ | 225.7 | $ | 171.6 | Amortization of other intangible assets | |||||||||||||||||||||||
Car rental | $ | 41.7 | $ | 32.7 | $ | 30.2 | ||||||||||||||||||||||
Equipment rental | 40.6 | 35.8 | 33.4 | |||||||||||||||||||||||||
Six Months Ended June 30, | Other reconciling items | 1.8 | 1.5 | 1.1 | ||||||||||||||||||||||||
Revenues | Adjusted Pre-Tax Income | |||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | Total | $ | 84.1 | $ | 70 | $ | 64.7 | ||||||||||||||||||
Car rental | $ | 4,414.30 | $ | 3,547.90 | $ | 571.4 | $ | 369 | ||||||||||||||||||||
Interest expense | ||||||||||||||||||||||||||||
Equipment rental | 735.4 | 637.1 | 119.9 | 68.4 | Car rental | $ | 316.3 | $ | 333.1 | $ | 401.3 | |||||||||||||||||
Total reportable segments | 5,149.70 | 4,185.00 | 691.3 | 437.4 | Equipment rental | 52 | 45.3 | 39.4 | ||||||||||||||||||||
Other | 1.5 | 1.1 | Other reconciling items | 229.5 | 271.9 | 285.8 | ||||||||||||||||||||||
Total | $ | 5,151.20 | $ | 4,186.10 | Total | $ | 597.8 | $ | 650.3 | $ | 726.5 | |||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||||
Other reconciling items(1) | (219.5 | ) | (161.7 | ) | ||||||||||||||||||||||||
Purchase accounting(2) | (66.8 | ) | (53.0 | ) | ||||||||||||||||||||||||
Years ended December 31, | ||||||||||||||||||||||||||||
Non-cash debt charges(3) | (22.1 | ) | (32.6 | ) | 2012 | 2011 | 2010 | |||||||||||||||||||||
Revenue earning equipment and property and equipment | ||||||||||||||||||||||||||||
Restructuring charges | (21.3 | ) | (22.8 | ) | Car rental | |||||||||||||||||||||||
Expenditures | $ | 9,118.30 | $ | 9,109.90 | $ | 8,430.10 | ||||||||||||||||||||||
Restructuring related charges(4) | (12.8 | ) | (8.3 | ) | ||||||||||||||||||||||||
Proceeds from disposals | (7,054.4 | ) | (7,689.4 | ) | (7,432.7 | ) | ||||||||||||||||||||||
Integration expenses(5) | (20.0 | ) | — | Net expenditures | $ | 2,063.90 | $ | 1,420.50 | $ | 997.4 | ||||||||||||||||||
Acquisition related costs | (11.7 | ) | (11.4 | ) | Equipment rental | |||||||||||||||||||||||
Expenditures | $ | 787.6 | $ | 617.5 | $ | 186.1 | ||||||||||||||||||||||
Other(7) | (5.4 | ) | — | |||||||||||||||||||||||||
Proceeds from disposals | (192.3 | ) | (213.8 | ) | (124.3 | ) | ||||||||||||||||||||||
Income before income taxes | $ | 311.7 | $ | 147.6 | Net expenditures (proceeds) | $ | 595.3 | $ | 403.7 | $ | 61.8 | |||||||||||||||||
_______________________________________________________________________________ | Other reconciling items | |||||||||||||||||||||||||||
Expenditures | $ | 20.1 | $ | 8.6 | $ | 3.9 | ||||||||||||||||||||||
-1 | Represents general corporate expenses, certain interest expense (including net interest on corporate debt), as well as other business activities. | |||||||||||||||||||||||||||
Proceeds from disposals | (16.1 | ) | (1.0 | ) | (0.3 | ) | ||||||||||||||||||||||
-2 | Represents the purchase accounting effects of the 2005 sale of all of Hertz's stock on our results of operations relating to increased depreciation and amortization of tangible and intangible assets and accretion of revalued workers' compensation and public liability and property damage liabilities. Also represents the purchase accounting effects of certain subsequent acquisitions on our results of operations relating to increased depreciation and amortization of tangible and intangible assets. | Net expenditures | $ | 4 | $ | 7.6 | $ | 3.6 | ||||||||||||||||||||
-3 | Represents non-cash debt charges relating to the amortization and write-off of deferred debt financing costs and debt discounts. | |||||||||||||||||||||||||||
-4 | Represents incremental costs incurred directly supporting our business transformation initiatives. Such costs include transition costs incurred in connection with our business process outsourcing arrangements and incremental costs incurred to facilitate business process re-engineering initiatives that involve significant organization redesign and extensive operational process changes. | As of December 31, | ||||||||||||||||||||||||||
2012 | 2011 | |||||||||||||||||||||||||||
-5 | Primarily represents Dollar Thrifty related expenses and adjustments. | Total assets at end of year | ||||||||||||||||||||||||||
Car rental | $ | 18,454.20 | $ | 13,037.90 | ||||||||||||||||||||||||
-6 | Represents the mark-to-market adjustment on our interest rate caps. | |||||||||||||||||||||||||||
Equipment rental | 3,623.00 | 3,058.90 | ||||||||||||||||||||||||||
-7 | Primarily represents expenses related to litigation accruals. | |||||||||||||||||||||||||||
Total assets increased $2,640.8 million from December 31, 2012 to June 30, 2013. The increase was primarily related to an increase in our car rental and equipment rental segments' revenue earning equipment, driven by increased volumes, partly offset by a decrease in fleet receivables within our car rental segment, primarily related to the timing of purchases and sales of revenue earning equipment. | Other reconciling items | 1,213.00 | 1,570.50 | |||||||||||||||||||||||||
Total | $ | 23,290.20 | $ | 17,667.30 | ||||||||||||||||||||||||
Revenue earning equipment, net, at end of year | ||||||||||||||||||||||||||||
Car rental | $ | 10,710.10 | $ | 8,318.70 | ||||||||||||||||||||||||
Equipment rental | 2,198.20 | 1,786.70 | ||||||||||||||||||||||||||
Total | $ | 12,908.30 | $ | 10,105.40 | ||||||||||||||||||||||||
Property and equipment, net, at end of year | ||||||||||||||||||||||||||||
Car rental | $ | 1,111.30 | $ | 971.3 | ||||||||||||||||||||||||
Equipment rental | 235.9 | 203.7 | ||||||||||||||||||||||||||
Other reconciling items | 89.2 | 76.9 | ||||||||||||||||||||||||||
Total | $ | 1,436.40 | $ | 1,251.90 | ||||||||||||||||||||||||
We operate in the United States and in international countries. International operations are substantially in Europe. The operations within major geographic areas are summarized below (in millions of dollars): | ||||||||||||||||||||||||||||
Years ended December 31, | ||||||||||||||||||||||||||||
2012 | 2011 | 2010 | ||||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||
United States | $ | 6,313.40 | $ | 5,413.30 | $ | 4,993.70 | ||||||||||||||||||||||
International | 2,707.40 | 2,885.10 | 2,568.80 | |||||||||||||||||||||||||
Total | $ | 9,020.80 | $ | 8,298.40 | $ | 7,562.50 | ||||||||||||||||||||||
As of December 31, | ||||||||||||||||||||||||||||
2012 | 2011 | |||||||||||||||||||||||||||
Total assets at end of year | ||||||||||||||||||||||||||||
United States | $ | 18,140.90 | $ | 12,724.40 | ||||||||||||||||||||||||
International | 5,149.30 | 4,942.90 | ||||||||||||||||||||||||||
Total | $ | 23,290.20 | $ | 17,667.30 | ||||||||||||||||||||||||
Revenue earning equipment, net, at end of year | ||||||||||||||||||||||||||||
United States | $ | 10,221.30 | $ | 7,621.20 | ||||||||||||||||||||||||
International | 2,687.00 | 2,484.20 | ||||||||||||||||||||||||||
Total | $ | 12,908.30 | $ | 10,105.40 | ||||||||||||||||||||||||
Property and equipment, net, at end of year | ||||||||||||||||||||||||||||
United States | $ | 1,226.10 | $ | 1,036.70 | ||||||||||||||||||||||||
International | 210.3 | 215.2 | ||||||||||||||||||||||||||
Total | $ | 1,436.40 | $ | 1,251.90 | ||||||||||||||||||||||||
(a) | The following table reconciles adjusted pre-tax income to income (loss) before income taxes for the years ended December 31, 2012, 2011 and 2010 (in millions of dollars): | |||||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||||||
Adjusted pre-tax income | 2012 | 2011 | 2010 | |||||||||||||||||||||||||
Car rental | $ | 1,020.10 | $ | 850.2 | $ | 641.9 | ||||||||||||||||||||||
Equipment rental | 227 | 161.6 | 78 | |||||||||||||||||||||||||
Total reportable segments | 1,247.10 | 1,011.80 | 719.9 | |||||||||||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||||
Other reconciling items(1) | (320.5 | ) | (306.2 | ) | (347.9 | ) | ||||||||||||||||||||||
Purchase accounting(2) | (109.6 | ) | (87.6 | ) | (90.3 | ) | ||||||||||||||||||||||
Non-cash debt charges(3) | (56.4 | ) | (105.9 | ) | (160.6 | ) | ||||||||||||||||||||||
Restructuring charges | (38.0 | ) | (56.4 | ) | (54.7 | ) | ||||||||||||||||||||||
Restructuring related charges(4) | (11.1 | ) | (9.8 | ) | (13.2 | ) | ||||||||||||||||||||||
Derivative gains (losses)(5) | (0.9 | ) | 0.1 | (3.2 | ) | |||||||||||||||||||||||
Acquisition related costs and charges(6) | (163.7 | ) | (18.8 | ) | (17.7 | ) | ||||||||||||||||||||||
Management transition costs | — | (4.0 | ) | — | ||||||||||||||||||||||||
Pension adjustment(7) | — | 13.1 | — | |||||||||||||||||||||||||
Premiums paid on debt(8) | — | (62.4 | ) | — | ||||||||||||||||||||||||
Other(9) | (44.0 | ) | — | — | ||||||||||||||||||||||||
Income before income taxes | $ | 502.9 | $ | 373.9 | $ | 32.3 | ||||||||||||||||||||||
_______________________________________________________________________________ | ||||||||||||||||||||||||||||
-1 | Represents general corporate expenses, certain interest expense (including net interest on corporate debt), as well as other business activities. | |||||||||||||||||||||||||||
-2 | Represents the increase in amortization of other intangible assets, depreciation of property and equipment and accretion of revalued liabilities relating to purchase accounting. | |||||||||||||||||||||||||||
-3 | Represents non-cash debt charges relating to the amortization and write-off of deferred debt financing costs and debt discounts. | |||||||||||||||||||||||||||
-4 | Represents incremental costs incurred directly supporting our business transformation initiatives. Such costs include transition costs incurred in connection with our business process outsourcing arrangements and incremental costs incurred to facilitate business process re-engineering initiatives that involve significant organization redesign and extensive operational process changes. | |||||||||||||||||||||||||||
-5 | Represents the mark-to-market adjustment on our interest rate cap. | |||||||||||||||||||||||||||
-6 | Primarily represents Dollar Thrifty acquisition related expenses, change in control expenses, 'Day-1' compensation expenses and other adjustments related to the Dollar Thrifty acquisition, loss on the Advantage divestiture, expenses related to additional required divestitures and costs associated with the Dollar Thrifty acquisition, pre-acquisition interest and commitment fee expenses for interim financing associated with the Dollar Thrifty acquisition and a gain on the investment in Dollar Thrifty stock. | |||||||||||||||||||||||||||
-7 | Represents a gain for the U.K. pension plan relating to unamortized prior service cost from a 2010 amendment that eliminated discretionary pension increases related to pre-1997 service primarily pertaining to inactive employees. | |||||||||||||||||||||||||||
-8 | Represents premiums paid to redeem our 10.5% Senior Subordinated Notes and a portion of our 8.875% Senior Notes. | |||||||||||||||||||||||||||
-9 | Primarily represents expenses related to the withdrawal from a multiemployer pension plan, litigation accrual and expenses associated with the impact of Hurricane Sandy. |
Contingencies_and_OffBalance_S2
Contingencies and Off-Balance Sheet Commitments | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2013 | Dec. 31, 2012 | ||
Contingencies and Off-Balance Sheet Commitments | |||
Contingencies and Off-Balance Sheet Commitments | Contingencies and Off-Balance Sheet Commitments | Contingencies and Off-Balance Sheet Commitments | |
Off-Balance Sheet Commitments | Legal Proceedings | ||
As of June 30, 2013 and December 31, 2012, the following guarantees (including indemnification commitments) were issued and outstanding: | From time to time we are a party to various legal proceedings. Other than with respect to the aggregate claims for public liability and property damage pending against us, management does not believe that any of the matters resolved, or pending against us, during 2012 are material to us and our subsidiaries taken as a whole. While we have accrued a liability with respect to claims for public liability and property damage of $332.2 million at December 31, 2012, management, based on the advice of legal counsel, does not believe any of the other pending matters described below are material. We have summarized below, for purposes of providing background, various legal proceedings to which we were and/or are a party during 2012 or the period after December 31, 2012 but before the filing of this Annual Report. In addition to the following, various other legal actions, claims and governmental inquiries and proceedings are pending or may be instituted or asserted in the future against us and our subsidiaries. As previously disclosed, on June 15, 2011 we received a subpoena from the staff of the Securities and Exchange Commission, or "SEC," seeking production of documents related to our proposed business combination with Dollar Thrifty. On February 14, 2013, we were informed by the staff that the investigation has been completed and that no action was taken by the staff or the SEC. | ||
Indemnification Obligations | |||
In the ordinary course of business, we execute 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. We regularly evaluate the probability of having to incur costs associated with these indemnification obligations and have accrued for expected losses that are probable and estimable. The types of indemnification obligations for which payments are possible include the following: | 1 | Hertz Equipment Rental Corporation, or “HERC,” Loss Damage Waiver | |
Sponsors; Directors | On August 15, 2006, Davis Landscape, Ltd., individually and on behalf of all others similarly situated, filed a complaint against HERC in the United States District Court for the District of New Jersey. In November 2006, the complaint was amended to add another plaintiff, Miguel V. Pro, and more claims. The Davis Landscape matter purports to be a nationwide class action on behalf of all persons and business entities who rented equipment from HERC and who paid a Loss Damage Waiver, or “LDW,” or an Environmental Recovery Fee, or “ERF.” The plaintiffs seek a declaratory judgment and injunction prohibiting HERC from engaging in acts with respect to the LDW and ERF charges that violate the New Jersey Consumer Fraud Act and claim that the charges violate the Uniform Commercial Code. The plaintiffs also seek an unspecified amount of compensatory damages with the return of all LDW and ERF charges paid, attorneys' fees and costs as well as other damages. The court has granted class certification, denied our motion for summary judgment and the case is in the discovery stages. In February 2012, we filed separate motions for partial summary judgment on the LDW and ERF claims and we filed a motion to decertify the class. In June 2012, the judge denied our motion for partial summary judgment on the LDW claim and, in July 2012, the judge granted our motion for partial summary judgment on the ERF claim. The court also entered an order referring the case to mediation by private consent of the parties. We have continued to work through the mediator and in direct discussions with plaintiffs’ counsel on an acceptable settlement of this litigation and have accrued our best estimate of the ultimate cost which is not material to our financial condition. | ||
We have entered into customary indemnification agreements with Hertz Holdings, the Sponsors and Hertz Holdings' stockholders affiliated with the Sponsors, pursuant to which Hertz Holdings and we will indemnify the Sponsors, Hertz Holdings' stockholders affiliated with the Sponsors and their respective affiliates, directors, officers, partners, members, employees, agents, representatives and controlling persons, against certain liabilities arising out of performance of a consulting agreement with Hertz Holdings and each of the Sponsors and certain other claims and liabilities, including liabilities arising out of financing arrangements or securities offerings. We do not believe that these indemnifications are reasonably likely to have a material impact on us. Hertz Holdings has entered into indemnification agreements with each of its directors. | |||
Environmental | 2 | Concession Fee Recoveries | |
We have 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 we may be held responsible could be substantial. The probable expenses that we expect to incur for such matters have been accrued, and those expenses are reflected in our condensed consolidated financial statements. As of June 30, 2013 and December 31, 2012, the aggregate amounts accrued for environmental liabilities including liability for environmental indemnities, reflected in our condensed consolidated balance sheets in "Accrued liabilities" were $2.6 million and $2.6 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 we ultimately may be responsible cannot be reasonably estimated because of uncertainties with respect to factors such as our 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). | On October 13, 2006, Janet Sobel, Daniel Dugan, PhD. and Lydia Lee, individually and on behalf of all others similarly situated v. The Hertz Corporation and Enterprise Rent-A-Car Company, or “Enterprise,” was filed in the United States District Court for the District of Nevada. The plaintiffs agreed to not pursue claims against Enterprise initially and the case only proceeded against Hertz. The Sobel case purports to be a nationwide class action on behalf of all persons who rented cars from Hertz at airports in Nevada and were separately charged airport concession recovery fees by Hertz as part of their rental charges. The plaintiffs seek an unspecified amount of compensatory damages, restitution of any charges found to be improper and an injunction prohibiting Hertz from quoting or charging those airport fees that are alleged not to be allowed by Nevada law. The complaint also seeks attorneys' fees and costs. Relevant documents were produced, depositions were taken and pre-trial motions were filed. After the court rendered a mixed ruling on the parties' cross‑motions for summary judgment and after the Lydia Lee case was refiled against Enterprise, the parties engaged in mediation which resulted in a proposed settlement. Although the court tentatively approved the settlement in November 2010, the court denied the plaintiffs' motion for final approval of the proposed settlement in May 2011. Since that time, the plaintiffs filed a motion for class certification-which we opposed-and discovery has commenced again. A separate action is proceeding against Enterprise, National and Alamo. In May 2012, all briefing was completed on the two outstanding issues—unjust enrichment and damages. The briefing included expert reports as submitted by both sides. In October 2012, the court held a hearing on the plaintiffs’ motion for class certification. The court has since entered a stay order and the parties will again be engaging in mediation. | ||
Legal Proceedings | |||
From time to time we are a party to various legal proceedings. We are currently a defendant in numerous actions and have received numerous claims on which actions have not yet been commenced for public liability and property damage arising from the operation of motor vehicles and equipment rented from us and our licensees. The obligation for public liability and property damage on self-insured U.S. and international vehicles and equipment, as stated on our balance sheet, 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 costs. At June 30, 2013 and December 31, 2012 our liability recorded for public liability and property damage matters was $327.5 million and $332.2 million, respectively. We believe that our analysis is based on the most relevant information available, combined with reasonable assumptions, and that we may prudently rely on this information to determine the estimated liability. We note the liability is subject to significant uncertainties. The adequacy of the liability reserve is regularly monitored based on evolving accident claim history and insurance related state legislation changes. If our estimates change or if actual results differ from these assumptions, the amount of the recorded liability is adjusted to reflect these results. | 3 | Telephone Consumer Protection Act | |
For a detailed description of certain of our legal proceedings please see Note 12 of the Notes to our audited annual consolidated financial statements included in our Form 10-K under the caption "Item 8—Financial Statements and Supplementary Data." | On May 3, 2007, Fun Services of Kansas City, Inc., individually and as the representative of a class of similarly‑situated persons, v. Hertz Equipment Rental Corporation was commenced in the District Court of Wyandotte County, Kansas. The case was subsequently transferred to the District Court of Johnson County, Kansas. The Fun Services matter purports to be a class action on behalf of all persons in Kansas and throughout the United States who, on or after four years prior to the filing of the action, were sent facsimile messages of advertising materials relating to the availability of property, goods or services by HERC and who did not provide express permission for sending such faxes. The plaintiffs seek an unspecified amount of compensatory damages, attorney's fees and costs. In August 2009, the court issued an order that stayed all activity in this litigation pending a decision by the Kansas Supreme Court in Critchfield Physical Therapy, Inc. v. Taranto Group, Inc., another Telephone Consumer Protection Act case. The Kansas Supreme Court issued its decision in September 2011. Thereafter, the District Court of Johnson County lifted the stay in the Fun Services case and issued a scheduling order that addresses class certification discovery. In February 2012, HERC filed a Notice of Removal with the U.S. District Court for the District of Kansas seeking to remove the case to federal court based on federal question jurisdiction. In March 2012, the federal magistrate entered an order requiring the parties to engage in mediation and report back to her regarding their progress by June 2012. In June 2012, a mediation was held and as a result of the mediation, the parties reached an agreement in principle to settle this class action. A settlement that addresses compensation to class members, class counsel fees and the claims process was finalized by the parties’ counsel in January 2013. The court issued an order preliminarily approving the settlement in January 2013 and the final approval hearing is currently scheduled for April 2013. We have accrued our best estimate of the ultimate cost, which is not material to our financial condition. | ||
The following recent developments pertaining to legal proceedings described in our Form 10-K are furnished on a supplemental basis: | |||
In Davis Landscape, Ltd., et al. v. Hertz Equipment Rental Corporation, the Court issued a Final Approval Order and Judgment in June 2013 giving final approval to the proposed class settlement that the court had preliminarily approved in March 2013. We have accrued our best estimate of the ultimate cost of the proposed class settlement which is not material to our financial condition, results of operations or cash flows. | 4 | California Tourism Assessments | |
In Fun Services of Kansas City, Inc., et al. v. Hertz Equipment Rental Corporation, the court issued a Final Approval Order in June 2013 giving final approval to the proposed class settlement which the court had preliminarily approved in January 2013. We have accrued our best estimate of the ultimate cost of the settlement, which is not material to our financial condition, results of operations or cash flows. | We are currently a defendant in a proceeding that purports to be a class action brought by Michael Shames and Gary Gramkow against The Hertz Corporation, Dollar Thrifty Automotive Group, Inc., Avis Budget Group, Inc., Vanguard Car Rental USA, Inc., Enterprise Rent-A-Car Company, Fox Rent A Car, Inc., Coast Leasing Corp., The California Travel and Tourism Commission, and Caroline Beteta. | ||
In March 2013, the court in Janet Sobel, et al. v. The Hertz Corporation granted, in part, the plaintiffs' motion for partial summary judgment with respect to restitution and granted the plaintiffs' motion for class certification, while denying the Company's motion for partial summary judgment. The court further indicated that the plaintiffs are entitled to prejudgment interest from the date of the plaintiffs' first amended complaint. A judgment has still not been entered in the case and there are expected to be further proceedings before the district court. The amount of a judgment could potentially exceed $40 million. The Company intends to appeal or seek other appropriate relief and believes that the court's liability, damages and class certification findings will be reversed. We continue to believe the outcome of this case will not be material to our financial condition, results of operations or cash flows. | Originally filed in November of 2007, the action is pending in the United States District Court for the Southern District of California, and plaintiffs claim to represent a class of individuals or entities that purchased rental car services from a defendant at airports located in California after January 1, 2007. Plaintiffs allege that the defendants agreed to charge consumers a 2.5% tourism assessment and not to compete with respect to this assessment, while misrepresenting that this assessment is owed by consumers, rather than the rental car defendants, to the California Travel and Tourism Commission, or the “CTTC.” Plaintiffs also allege that defendants agreed to pass through to consumers a fee known as the Airport Concession Fee, which fee had previously been required to be included in the rental car defendants' individual base rates, without reducing their base rates. Based on these allegations, the amended complaint seeks treble damages, disgorgement, injunctive relief, interest, attorneys' fees and costs. Plaintiffs dropped their claims against Caroline Beteta. Plaintiffs' claims against the rental car defendants have been dismissed, except for the federal antitrust claim. In June 2010, the United States Court of Appeals for the Ninth Circuit affirmed the dismissal of the plaintiffs' antitrust case against the CTTC as a state agency immune from antitrust complaint because the California Legislature foresaw the alleged price‑fixing conspiracy that was the subject of the complaint. The plaintiffs subsequently filed a petition with the Ninth Circuit seeking a rehearing and that petition was granted. In November 2010, the Ninth Circuit withdrew its June opinion and instead held that state action immunity was improperly invoked. The Ninth Circuit reinstated the plaintiffs' antitrust claims and remanded the case to the district court for further proceedings. In May 2012, the district court issued an order preliminarily approving the settlement of this action; certifying a settlement class; certifying a class representative and lead counsel; and providing for class notice. In October 2012, the court held a final approval hearing. In November 2012, the court issued an order of final approval of the settlement of this action. One of the objectors to the settlement has filed a notice of appeal of this order with the United States Court of Appeals for the Ninth Circuit. We have accrued our best estimate of the ultimate cost which is not material to our financial condition. | ||
Aside from the above mentioned, none of the other legal proceedings described in our Form 10-K have experienced any material changes. | |||
In addition to the above mentioned and those described in our Form 10-K or in our other filings with SEC, various other legal actions, claims and governmental inquiries and proceedings are pending or may be instituted or asserted in the future against us and our subsidiaries. Other than with respect to the aggregate claims for public liability and property damage pending against us, management, based on the advice of legal counsel, does not believe that any of the matters resolved, or pending against us, are material to us and our subsidiaries taken as a whole. | 5 | Public Liability and Property Damage | |
We have established reserves for matters where we believe that the losses are probable and reasonably estimated. Other than with respect to the aggregate reserve established for claims for public liability and property damage, none of those reserves are material. For matters where we have not established a reserve, 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 the outcome of the individual litigated matters is not predictable with assurance. It is possible that certain of the actions, claims, inquiries or proceedings, including those discussed in our Form 10-K or in our other filings with SEC, could be decided unfavorably to us or any of our 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 our consolidated financial condition, results of operations or cash flows in any particular reporting period. | We are currently a defendant in numerous actions and have received numerous claims on which actions have not yet been commenced for public liability and property damage arising from the operation of motor vehicles and equipment rented from us. The obligation for public liability and property damage on self-insured U.S. and international vehicles and equipment, as stated on our balance sheet, 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. At December 31, 2012 and December 31, 2011 our liability recorded for public liability and property damage matters was $332.2 million and $281.5 million, respectively. We believe that our analysis is based on the most relevant information available, combined with reasonable assumptions, and that we may prudently rely on this information to determine the estimated liability. We note the liability is subject to significant uncertainties. The adequacy of the liability reserve is regularly monitored based on evolving accident claim history and insurance related state legislation changes. If our estimates change or if actual results differ from these assumptions, the amount of the recorded liability is adjusted to reflect these results. | ||
We intend to assert that we have meritorious defenses in the foregoing matters and we intend to defend ourselves vigorously. | |||
We have established reserves for matters where we believe that the losses are probable and reasonably estimated, including for various of the matters set forth above. Other than with respect to the aggregate reserves established for claims for public liability and property damage, none of those reserves are material. For matters, including those described above, where we have not established a reserve, 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 the outcome of the individual litigated matters is not predictable with assurance. It is possible that certain of the actions, claims, inquiries or proceedings, including those discussed above, could be decided unfavorably to us or any of our 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 our consolidated financial condition, results of operations or cash flows in any particular reporting period. | |||
Off-Balance Sheet Commitments | |||
As of December 31, 2012 and December 31, 2011, the following guarantees (including indemnification commitments) were issued and outstanding. | |||
Indemnification Obligations | |||
In the ordinary course of business, we execute 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. We regularly evaluate the probability of having to incur costs associated with these indemnification obligations and have accrued for expected losses that are probable and estimable. The types of indemnification obligations for which payments are possible include the following: | |||
Sponsors; Directors | |||
We have entered into customary indemnification agreements with Hertz Holdings, the Sponsors and Hertz Holdings' stockholders affiliated with the Sponsors, pursuant to which Hertz Holdings and Hertz will indemnify the Sponsors, Hertz Holdings' stockholders affiliated with the Sponsors and their respective affiliates, directors, officers, partners, members, employees, agents, representatives and controlling persons, against certain liabilities arising out of performance of a consulting agreement with Hertz Holdings and each of the Sponsors and certain other claims and liabilities, including liabilities arising out of financing arrangements or securities offerings. Hertz Holdings also entered into indemnification agreements with each of its directors. We do not believe that these indemnifications are reasonably likely to have a material impact on us. | |||
Environmental | |||
We have 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 we may be held responsible could be substantial. The probable expenses that we expect to incur for such matters have been accrued, and those expenses are reflected in our condensed consolidated financial statements. As of December 31, 2012 and December 31, 2011, the aggregate amounts accrued for environmental liabilities including liability for environmental indemnities, reflected in our condensed consolidated balance sheets in "Accrued liabilities" were $2.6 million and $1.5 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 we ultimately may be responsible cannot be reasonably estimated because of uncertainties with respect to factors such as our 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). |
Restructuring1
Restructuring | 6 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | |||||||||||||||||||||||||||||||||||||||
Restructuring | ||||||||||||||||||||||||||||||||||||||||
Restructuring | Restructuring | Restructuring | ||||||||||||||||||||||||||||||||||||||
As part of our ongoing effort to implement our strategy of reducing operating costs, we have evaluated our workforce and operations and made adjustments, including headcount reductions and business process reengineering resulting in optimized work flow at rental locations and maintenance facilities as well as streamlined our back-office operations and evaluated potential outsourcing opportunities. When we made adjustments to our workforce and operations, we incurred incremental expenses that delay the benefit of a more efficient workforce and operating structure, but we believe that increased operating efficiency and reduced costs associated with the operation of our business are important to our long-term competitiveness. | As part of our ongoing effort to implement our strategy of reducing operating costs, we have evaluated our workforce and operations and made adjustments, including headcount reductions and business process reengineering resulting in optimized work flow at rental locations and maintenance facilities as well as streamlined our back-office operations and evaluated potential outsourcing opportunities. When we made adjustments to our workforce and operations, we incurred incremental expenses that delay the benefit of a more efficient workforce and operating structure, but we believe that increased operating efficiency and reduced costs associated with the operation of our business are important to our long-term competitiveness. | |||||||||||||||||||||||||||||||||||||||
During 2007 through 2012, we announced several initiatives to improve our competitiveness and industry leadership through targeted job reductions. These initiatives included, but were not limited to, job reductions at our corporate headquarters and back-office operations in the U.S. and Europe. As part of our re-engineering optimization we outsourced selected functions globally. In addition, we streamlined operations and reduced costs by initiating the closure of targeted car rental locations and equipment rental branches throughout the world. The largest of these closures occurred in 2008 which resulted in closures of approximately 250 off-airport locations and 22 branches in our U.S. equipment rental business. These initiatives impacted approximately 9,610 employees. | During 2007 through 2011, we announced several initiatives to improve our competitiveness and industry leadership through targeted job reductions. These initiatives included, but were not limited to, job reductions at our corporate headquarters and back-office operations in the U.S. and Europe. As part of our re-engineering optimization we outsourced selected functions globally. In addition, we streamlined operations and reduced costs by initiating the closure of targeted car rental locations and equipment rental branches throughout the world. The largest of these closures occurred in 2008 which resulted in closures of approximately 250 off-airport locations and 22 branches in our U.S. equipment rental business. These initiatives impacted approximately 8,960 employees. | |||||||||||||||||||||||||||||||||||||||
During the first and second quarters of 2013, we continued to streamline operations (including actions associated with the Dollar Thrifty integration) and reduce costs with the closure of several car rental and equipment rental locations globally as well as a reduction in our workforce by approximately 50 and 515 employees, respectively. | During 2012, we continued to streamline operations and reduce costs with the closure of several car rental and equipment rental locations globally as well as a reduction in our workforce by approximately 650 employees. | |||||||||||||||||||||||||||||||||||||||
From January 1, 2007 through June 30, 2013, we incurred $589.7 million ($301.6 million for our car rental segment, $231.6 million for our equipment rental segment and $56.5 million of other) of restructuring charges. | From January 1, 2007 through December 31, 2012, we incurred $568.4 million ($282.7 million for our car rental segment, $230.3 million for our equipment rental segment and $55.4 million of other) of restructuring charges. | |||||||||||||||||||||||||||||||||||||||
Additional efficiency and cost saving initiatives are being developed; however, we presently do not have firm plans or estimates of any related expenses. | Additional efficiency and cost saving initiatives are being developed; however, we presently do not have firm plans or estimates of any related expenses. | |||||||||||||||||||||||||||||||||||||||
Restructuring charges in our consolidated statement of operations can be summarized as follows (in millions of dollars). | Restructuring charges in our consolidated statement of operations can be summarized as follows (in millions of dollars): | |||||||||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | Years Ended December 31, | ||||||||||||||||||||||||||||||||||||||
June 30, | June 30, | 2012 | 2011 | 2010 | ||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | By Type: | ||||||||||||||||||||||||||||||||||||
By Type: | Termination benefits | $ | 26.2 | $ | 14.4 | $ | 12.2 | |||||||||||||||||||||||||||||||||
Termination benefits | $ | 15.2 | $ | 13.5 | $ | 17.4 | $ | 16.2 | ||||||||||||||||||||||||||||||||
Pension and post retirement expense | 1 | 0.4 | 0.4 | |||||||||||||||||||||||||||||||||||||
Consultant costs | 0.5 | 0.4 | 0.8 | 0.6 | ||||||||||||||||||||||||||||||||||||
Consultant costs | 1.2 | 1.3 | 1.1 | |||||||||||||||||||||||||||||||||||||
Facility closure and lease obligation costs | 1.9 | 2.2 | 3.1 | 6 | ||||||||||||||||||||||||||||||||||||
Asset writedowns | — | 23.2 | 20.4 | |||||||||||||||||||||||||||||||||||||
Total | $ | 17.6 | $ | 16.1 | $ | 21.3 | $ | 22.8 | ||||||||||||||||||||||||||||||||
Facility closure and lease obligation costs | 8.9 | 16.5 | 14.3 | |||||||||||||||||||||||||||||||||||||
Relocation costs and temporary labor costs | 0.4 | 0.6 | 5 | |||||||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||||||||||
June 30, | June 30, | Other | 0.3 | — | 1.3 | |||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||
By Caption: | Total | $ | 38 | $ | 56.4 | $ | 54.7 | |||||||||||||||||||||||||||||||||
Direct operating | $ | 6.8 | $ | 7 | $ | 8.3 | $ | 11.9 | ||||||||||||||||||||||||||||||||
Selling, general and administrative | 10.8 | 9.1 | 13 | 10.9 | ||||||||||||||||||||||||||||||||||||
Total | $ | 17.6 | $ | 16.1 | $ | 21.3 | $ | 22.8 | Years Ended December 31, | |||||||||||||||||||||||||||||||
2012 | 2011 | 2010 | ||||||||||||||||||||||||||||||||||||||
By Caption: | ||||||||||||||||||||||||||||||||||||||||
Direct operating | $ | 22.6 | $ | 46.6 | $ | 43.5 | ||||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||||||||||
June 30, | June 30, | Selling, general and administrative | 15.4 | 9.8 | 11.2 | |||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||
By Segment: | Total | $ | 38 | $ | 56.4 | $ | 54.7 | |||||||||||||||||||||||||||||||||
Car rental | $ | 15.8 | $ | 11.8 | $ | 18.9 | $ | 15.3 | ||||||||||||||||||||||||||||||||
Equipment rental | 0.8 | 2.6 | 1.3 | 5.8 | ||||||||||||||||||||||||||||||||||||
Other reconciling items | 1 | 1.7 | 1.1 | 1.7 | Years Ended December 31, | |||||||||||||||||||||||||||||||||||
2012 | 2011 | 2010 | ||||||||||||||||||||||||||||||||||||||
Total | $ | 17.6 | $ | 16.1 | $ | 21.3 | $ | 22.8 | By Segment: | |||||||||||||||||||||||||||||||
Car rental | $ | 26.4 | $ | 16.6 | $ | 18.1 | ||||||||||||||||||||||||||||||||||
The following table sets forth the activity affecting the restructuring accrual during the three months ended June 30, 2013 (in millions of dollars). We expect 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. | ||||||||||||||||||||||||||||||||||||||||
Equipment rental | 8.8 | 40.5 | 34.7 | |||||||||||||||||||||||||||||||||||||
Termination | Pension | Consultant | Other | Total | Other reconciling items | 2.8 | (0.7 | ) | 1.9 | |||||||||||||||||||||||||||||||
Benefits | and Post-retirement | Costs | ||||||||||||||||||||||||||||||||||||||
Expense | Total | $ | 38 | $ | 56.4 | $ | 54.7 | |||||||||||||||||||||||||||||||||
Balance as of January 1, 2013 | $ | 12.4 | $ | 0.2 | $ | 0.3 | $ | 8.1 | $ | 21 | ||||||||||||||||||||||||||||||
Charges incurred | 17.4 | — | 0.8 | 3.1 | 21.3 | The following table sets forth the activity affecting the restructuring accrual during the year ended December 31, 2012 (in millions of dollars). We expect to pay the remaining restructuring obligations relating to termination benefits over the next twelve months. The remainder of the restructuring accrual relates to future lease obligations which will be paid over the remaining term of the applicable leases. | ||||||||||||||||||||||||||||||||||
Cash payments | (17.4 | ) | (0.2 | ) | (0.9 | ) | (1.5 | ) | (20.0 | ) | ||||||||||||||||||||||||||||||
Other(1) | (0.3 | ) | — | — | (3.2 | ) | (3.5 | ) | Termination | Pension | Consultant | Other | Total | |||||||||||||||||||||||||||
Benefits | and Post | Costs | ||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2013 | $ | 12.1 | $ | — | $ | 0.2 | $ | 6.5 | $ | 18.8 | Retirement | |||||||||||||||||||||||||||||
Expense | ||||||||||||||||||||||||||||||||||||||||
_______________________________________________________________________________ | Balance as of January 1, 2011 | $ | 6.3 | $ | 0.2 | $ | 0.1 | $ | 10.9 | $ | 17.5 | |||||||||||||||||||||||||||||
(1)Primarily consists of $3.2 million for facility closures and $0.3 million for foreign currency translation. | ||||||||||||||||||||||||||||||||||||||||
Charges incurred | 14.4 | 0.4 | 1.3 | 40.3 | 56.4 | |||||||||||||||||||||||||||||||||||
Cash payments | (15.5 | ) | — | (0.6 | ) | (2.3 | ) | (18.4 | ) | |||||||||||||||||||||||||||||||
Other(1) | 3.9 | (0.4 | ) | (0.2 | ) | (37.2 | ) | (33.9 | ) | |||||||||||||||||||||||||||||||
Balance as of December 31, 2011 | $ | 9.1 | $ | 0.2 | $ | 0.6 | $ | 11.7 | $ | 21.6 | ||||||||||||||||||||||||||||||
Charges incurred | 26.2 | 1 | 1.2 | 9.6 | 38 | |||||||||||||||||||||||||||||||||||
Cash payments | (22.6 | ) | — | (0.9 | ) | (3.3 | ) | (26.8 | ) | |||||||||||||||||||||||||||||||
Other(2) | (0.3 | ) | (1.0 | ) | (0.6 | ) | (9.9 | ) | (11.8 | ) | ||||||||||||||||||||||||||||||
Balance as of December 31, 2012 | $ | 12.4 | $ | 0.2 | $ | 0.3 | $ | 8.1 | $ | 21 | ||||||||||||||||||||||||||||||
_______________________________________________________________________________ | ||||||||||||||||||||||||||||||||||||||||
-1 | Consists of decreases of $23.2 million for asset writedowns, $13.9 million for facility closures, $0.4 million in ASC 715 pension adjustment and $0.2 million of consultant costs, partly offset by a $3.8 million increase for involuntary benefits. | |||||||||||||||||||||||||||||||||||||||
-2 | Primarily consists of decreases of $10.3 million for facility closures and $1.0 million in ASC 715 pension adjustment. |
Financial_Instruments1
Financial Instruments | 6 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | ||||||||||||||||||||||||||||||||||||||||
Financial Instruments | |||||||||||||||||||||||||||||||||||||||||
Financial Instruments | Financial Instruments | Financial Instruments | |||||||||||||||||||||||||||||||||||||||
Gasoline Swap Contracts | Gasoline Swap Contracts | ||||||||||||||||||||||||||||||||||||||||
We purchase unleaded gasoline and diesel fuel at prevailing market rates and maintain a program to manage our exposure to changes in fuel prices through the use of derivative commodity instruments. We currently have in place swaps to cover a portion of our fuel price exposure through July 2014. We presently hedge a portion of our overall unleaded gasoline and diesel fuel purchases with commodity swaps and have contracts in place that settle on a monthly basis. Gains and losses resulting from changes in the fair value of these commodity instruments are included in our results of operations in the periods incurred. | We purchase unleaded gasoline and diesel fuel at prevailing market rates and maintain a program to manage our exposure to changes in fuel prices through the use of derivative commodity instruments. We currently have in place swaps to cover a portion of our fuel price exposure through March 2014. We presently hedge a portion of our overall unleaded gasoline and diesel fuel purchases with commodity swaps and have contracts in place that settle on a monthly basis. Gains and losses resulting from changes in the fair value of these commodity instruments are included in our results of operations in the periods incurred. | ||||||||||||||||||||||||||||||||||||||||
Interest Rate Cap Contracts | Interest Rate Cap Contracts | ||||||||||||||||||||||||||||||||||||||||
Hertz is exposed to market risks, such as changes in interest rates, and has purchased and sold interest rate cap agreements to manage that risk. Consequently, we manage the financial exposure as part of our risk management program by striving to reduce the potentially adverse effects that the volatility of the financial markets may have on our operating results. Gains and losses resulting from changes in the fair value of these interest rate caps are included in our results of operations in the periods incurred. | Hertz is exposed to market risks, such as changes in interest rates, and has purchased and sold interest rate cap agreements to manage that risk. Consequently, we manage the financial exposure as part of our risk management program by striving to reduce the potentially adverse effects that the volatility of the financial markets may have on our operating results. Gains and losses resulting from changes in the fair value of these interest rate caps are included in our results of operations in the periods incurred. | ||||||||||||||||||||||||||||||||||||||||
Foreign Currency Forward Contracts | Foreign Currency Forward Contracts | ||||||||||||||||||||||||||||||||||||||||
We manage exposure to fluctuations in currency risk on intercompany loans we make to certain of our subsidiaries by entering into foreign currency forward contracts at the time of the loans which are intended to offset the impact of foreign currency movements on the underlying intercompany loan obligations. | We manage exposure to fluctuations in currency risk on intercompany loans we make to certain of our subsidiaries by entering into foreign currency forward contracts at the time of the loans which are intended to offset the impact of foreign currency movements on the underlying intercompany loan obligations. | ||||||||||||||||||||||||||||||||||||||||
Foreign Exchange Options | Foreign Exchange Options | ||||||||||||||||||||||||||||||||||||||||
We manage our foreign currency risk primarily by incurring, to the extent practicable, operating and financing expenses in the local currency in the countries in which we operate, including making fleet and equipment purchases and borrowing for working capital needs. Also, we have purchased foreign exchange options to manage exposure to fluctuations in foreign exchange rates for selected marketing programs. The effect of exchange rate changes on these financial instruments would not materially affect our consolidated financial position, results of operations or cash flows. Our risks with respect to foreign exchange options are limited to the premium paid for the right to exercise the option and the future performance of the option's counterparty. | We manage our foreign currency risk primarily by incurring, to the extent practicable, operating and financing expenses in the local currency in the countries in which we operate, including making fleet and equipment purchases and borrowing for working capital needs. Also, we have purchased foreign exchange options to manage exposure to fluctuations in foreign exchange rates for selected marketing programs. The effect of exchange rate changes on these financial instruments would not materially affect our consolidated financial position, results of operations or cash flows. Our risks with respect to foreign exchange options are limited to the premium paid for the right to exercise the option and the future performance of the option's counterparty. | ||||||||||||||||||||||||||||||||||||||||
The following table summarizes the estimated fair value of derivatives (in millions of dollars): | The following table summarizes the estimated fair value of derivatives (in millions of dollars): | ||||||||||||||||||||||||||||||||||||||||
Fair Value of Derivative Instruments(1) | Fair Value of Derivative Instruments(1) | ||||||||||||||||||||||||||||||||||||||||
Asset Derivatives(2) | Liability Derivatives(2) | Asset Derivatives(2) | Liability Derivatives(2) | ||||||||||||||||||||||||||||||||||||||
June 30, | December 31, | June 30, | December 31, | December 31, | December 31, | December 31, | December 31, | ||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2012 | 2011 | 2012 | 2011 | ||||||||||||||||||||||||||||||||||
Derivatives not designated as hedging | Derivatives not designated as hedging | ||||||||||||||||||||||||||||||||||||||||
instruments under ASC 815: | instruments under ASC 815: | ||||||||||||||||||||||||||||||||||||||||
Gasoline swaps | $ | — | $ | — | $ | 0.9 | $ | 0.1 | Gasoline swaps | $ | — | $ | — | $ | 0.1 | $ | 0.4 | ||||||||||||||||||||||||
Interest rate caps | 0.6 | 0.9 | 0.6 | 0.9 | Interest rate caps | 0.9 | 0.5 | 0.9 | 0.4 | ||||||||||||||||||||||||||||||||
Foreign exchange forward contracts | 4.8 | 3.4 | 1.9 | 4.5 | Foreign exchange forward contracts | 3.4 | 4.4 | 4.5 | 1.9 | ||||||||||||||||||||||||||||||||
Foreign exchange options | 0.1 | 0.2 | — | — | Interest rate swaps | — | — | — | 0.2 | ||||||||||||||||||||||||||||||||
Total derivatives not designated as hedging | Foreign exchange options | 0.2 | 0.1 | — | — | ||||||||||||||||||||||||||||||||||||
instruments under ASC 815 | $ | 5.5 | $ | 4.5 | $ | 3.4 | $ | 5.5 | |||||||||||||||||||||||||||||||||
Total derivatives not designated as hedging | |||||||||||||||||||||||||||||||||||||||||
_______________________________________________________________________________ | instruments under ASC 815 | $ | 4.5 | $ | 5 | $ | 5.5 | $ | 2.9 | ||||||||||||||||||||||||||||||||
-1 | All fair value measurements were primarily based upon significant observable (Level 2) inputs. | _______________________________________________________________________________ | |||||||||||||||||||||||||||||||||||||||
-2 | All asset derivatives are recorded in "Prepaid expenses and other assets" and all liability derivatives are recorded in "Accrued liabilities" on our condensed consolidated balance sheets. | -1 | All fair value measurements were primarily based upon significant observable (Level 2) inputs. | ||||||||||||||||||||||||||||||||||||||
The following table summarizes the gains and (losses) of derivatives (in millions of dollars): | |||||||||||||||||||||||||||||||||||||||||
-2 | All asset derivatives are recorded in "Prepaid expenses and other assets" and all liability derivatives are recorded in "Other accrued liabilities" on our consolidated balance sheets. | ||||||||||||||||||||||||||||||||||||||||
The following table summarizes the (gains) and losses of derivatives (in millions of dollars): | |||||||||||||||||||||||||||||||||||||||||
Location of Gain or (Loss) | Amount of Gain or | ||||||||||||||||||||||||||||||||||||||||
Recognized on Derivatives | (Loss) Recognized in | ||||||||||||||||||||||||||||||||||||||||
Income on Derivatives | Location of Gain or (Loss) | Amount of Gain or | |||||||||||||||||||||||||||||||||||||||
Three Months Ended | Recognized on Derivatives | (Loss) Recognized in | |||||||||||||||||||||||||||||||||||||||
June 30, | Income on Derivatives | ||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | Years Ended December 31, | |||||||||||||||||||||||||||||||||||||||
Derivatives not designated as hedging | 2012 | 2011 | |||||||||||||||||||||||||||||||||||||||
instruments under ASC 815: | Derivatives not designated as hedging | ||||||||||||||||||||||||||||||||||||||||
Gasoline swaps | Direct operating | $ | (2.5 | ) | $ | (3.3 | ) | instruments under ASC 815: | |||||||||||||||||||||||||||||||||
Interest rate caps | Selling, general and administrative | — | (0.1 | ) | Gasoline swaps | Direct operating | $ | 0.7 | $ | 2.6 | |||||||||||||||||||||||||||||||
Foreign exchange forward contracts | Selling, general and administrative | (7.1 | ) | (7.7 | ) | Interest rate caps | Selling, general and administrative | (0.8 | ) | — | |||||||||||||||||||||||||||||||
Foreign exchange options | Selling, general and administrative | — | 0.1 | ||||||||||||||||||||||||||||||||||||||
Foreign exchange forward contracts | Selling, general and administrative | (15.4 | ) | (11.0 | ) | ||||||||||||||||||||||||||||||||||||
Total | $ | (9.6 | ) | $ | (11.0 | ) | Foreign exchange options | Selling, general and administrative | — | (0.2 | ) | ||||||||||||||||||||||||||||||
Total | $ | (15.5 | ) | $ | (8.6 | ) | |||||||||||||||||||||||||||||||||||
Location of Gain or (Loss) | Amount of Gain or | Fair value measures | |||||||||||||||||||||||||||||||||||||||
Recognized on Derivatives | (Loss) Recognized in | Pursuant to the accounting guidance for fair value measurements and its subsequent updates, fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, we consider the principal or most advantageous market in which we would transact and we consider assumptions that market participants would use when pricing the asset or liability. | |||||||||||||||||||||||||||||||||||||||
Income on Derivatives | Fair Value Hierarchy | ||||||||||||||||||||||||||||||||||||||||
Six Months Ended | The accounting guidance for fair value measurements also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument's categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The inputs are prioritized into three levels that may be used to measure fair value: | ||||||||||||||||||||||||||||||||||||||||
June 30, | Level 1: Inputs that reflect quoted prices for identical assets or liabilities in active markets that are observable. | ||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | Level 2: Inputs that reflect 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. | |||||||||||||||||||||||||||||||||||||||
Derivatives not designated as hedging | Level 3: Inputs that are unobservable to the extent that observable inputs are not available for the asset or liability at the measurement date. | ||||||||||||||||||||||||||||||||||||||||
instruments under ASC 815: | Asset and Liabilities Measured at Fair Value on a Recurring Basis | ||||||||||||||||||||||||||||||||||||||||
Gasoline swaps | Direct operating | $ | (0.8 | ) | $ | (1.5 | ) | Assets and liabilities measured at fair value on a recurring basis as of December 31, 2012 and 2011 were as follows (in millions): | |||||||||||||||||||||||||||||||||
Interest rate caps | Selling, general and administrative | 0.1 | (0.1 | ) | |||||||||||||||||||||||||||||||||||||
Foreign exchange forward contracts | Selling, general and administrative | (2.9 | ) | (5.6 | ) | 31-Dec-12 | |||||||||||||||||||||||||||||||||||
Foreign exchange options | Selling, general and administrative | (0.1 | ) | 0.1 | Fair Value Measurements Using | ||||||||||||||||||||||||||||||||||||
Total | Quoted Prices in Active Markets | Significant | Significant | ||||||||||||||||||||||||||||||||||||||
Total | $ | (3.7 | ) | $ | (7.1 | ) | for Identical | Other | Unobservable | ||||||||||||||||||||||||||||||||
Instruments | Observable | Inputs | |||||||||||||||||||||||||||||||||||||||
While our fuel derivatives, foreign currency forward contracts,foreign exchange options and certain interest rate caps are subject to enforceable master netting agreements with their counterparties, we do not offset the derivative assets and liabilities in our condensed consolidated balance sheets. | (Level 1) | Inputs | (Level 3) | ||||||||||||||||||||||||||||||||||||||
(Level 2) | |||||||||||||||||||||||||||||||||||||||||
The impact of offsetting derivative instruments is depicted below (in millions of dollars): | Prepaid Expenses and Other Current Assets: | ||||||||||||||||||||||||||||||||||||||||
Interest rate caps | $ | 0.9 | $ | — | $ | 0.9 | $ | — | |||||||||||||||||||||||||||||||||
As of June 30, 2013: | Gross amounts not offset in Balance Sheet | Foreign currency forward contracts | 3.4 | — | 3.4 | — | |||||||||||||||||||||||||||||||||||
Gross assets | Gross assets offset in Balance Sheet | Net recognized assets in Balance Sheet | Financial Instruments | Cash Collateral | Net Amount | ||||||||||||||||||||||||||||||||||||
Interest rate caps | $ | 0.6 | $ | — | $ | 0.6 | $ | — | $ | — | $ | 0.6 | Foreign exchange options | 0.2 | — | 0.2 | — | ||||||||||||||||||||||||
Foreign exchange forward contracts | 4.8 | — | 4.8 | (2.8 | ) | — | 2 | Total | $ | 4.5 | $ | — | $ | 4.5 | $ | — | |||||||||||||||||||||||||
Foreign exchange options | 0.1 | — | 0.1 | — | — | 0.1 | |||||||||||||||||||||||||||||||||||
Other Current Liabilities: | |||||||||||||||||||||||||||||||||||||||||
Total | $ | 5.5 | $ | — | $ | 5.5 | $ | (2.8 | ) | $ | — | $ | 2.7 | Gasoline swaps | $ | 0.1 | $ | — | $ | 0.1 | $ | — | |||||||||||||||||||
Interest rate caps | 0.9 | — | 0.9 | — | |||||||||||||||||||||||||||||||||||||
Gross amounts not offset in Balance Sheet | Foreign currency forward contracts | 4.5 | — | 4.5 | — | ||||||||||||||||||||||||||||||||||||
Gross liabilities | Gross liabilities offset in Balance Sheet | Net recognized liabilities in Balance Sheet | Financial Instruments | Cash Collateral | Net Amount | ||||||||||||||||||||||||||||||||||||
Gasoline swaps | $ | 0.9 | $ | — | $ | 0.9 | $ | (0.9 | ) | $ | — | $ | — | Total | $ | 5.5 | $ | — | $ | 5.5 | $ | — | |||||||||||||||||||
Interest rate caps | 0.6 | — | 0.6 | — | — | 0.6 | |||||||||||||||||||||||||||||||||||
Foreign exchange forward contracts | 1.9 | — | 1.9 | (1.9 | ) | — | — | 31-Dec-11 | |||||||||||||||||||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||||||||||||||||||||||||||
Total | $ | 3.4 | $ | — | $ | 3.4 | $ | (2.8 | ) | $ | — | $ | 0.6 | Total | Quoted Prices in Active Markets | Significant | Significant | ||||||||||||||||||||||||
for Identical | Other | Unobservable | |||||||||||||||||||||||||||||||||||||||
Instruments | Observable | Inputs | |||||||||||||||||||||||||||||||||||||||
(Level 1) | Inputs | (Level 3) | |||||||||||||||||||||||||||||||||||||||
(Level 2) | |||||||||||||||||||||||||||||||||||||||||
As of December 31, 2012: | Gross amounts not offset in Balance Sheet | Prepaid Expenses and Other Current Assets: | |||||||||||||||||||||||||||||||||||||||
Gross assets | Gross assets offset in Balance Sheet | Net recognized assets in Balance Sheet | Financial Instruments | Cash Collateral | Net Amount | Interest rate caps | $ | 0.5 | $ | — | $ | 0.5 | $ | — | |||||||||||||||||||||||||||
Interest rate caps | $ | 0.9 | $ | — | $ | 0.9 | $ | — | $ | — | $ | 0.9 | |||||||||||||||||||||||||||||
Foreign currency forward contracts | 4.4 | — | 4.4 | — | |||||||||||||||||||||||||||||||||||||
Foreign exchange forward contracts | 3.4 | — | 3.4 | (1.3 | ) | — | 2.1 | ||||||||||||||||||||||||||||||||||
Foreign exchange options | 0.1 | — | 0.1 | — | |||||||||||||||||||||||||||||||||||||
Foreign exchange options | 0.2 | — | 0.2 | (0.2 | ) | — | — | ||||||||||||||||||||||||||||||||||
Investment | 33.2 | 33.2 | — | — | |||||||||||||||||||||||||||||||||||||
Total | $ | 4.5 | $ | — | $ | 4.5 | $ | (1.5 | ) | $ | — | $ | 3 | ||||||||||||||||||||||||||||
Total | $ | 38.2 | $ | 33.2 | $ | 5 | $ | — | |||||||||||||||||||||||||||||||||
Gross amounts not offset in Balance Sheet | Other Current Liabilities: | ||||||||||||||||||||||||||||||||||||||||
Gross liabilities | Gross liabilities offset in Balance Sheet | Net recognized liabilities in Balance Sheet | Financial Instruments | Cash Collateral | Net Amount | Gasoline swaps | $ | 0.4 | $ | — | $ | 0.4 | $ | — | |||||||||||||||||||||||||||
Interest rate caps | $ | 0.9 | $ | — | $ | 0.9 | $ | — | $ | — | $ | 0.9 | |||||||||||||||||||||||||||||
Interest rate caps | 0.4 | — | 0.4 | — | |||||||||||||||||||||||||||||||||||||
Gasoline swaps | 0.1 | — | 0.1 | — | — | 0.1 | |||||||||||||||||||||||||||||||||||
Foreign currency forward contracts | 1.9 | — | 1.9 | — | |||||||||||||||||||||||||||||||||||||
Foreign exchange forward contracts | 4.5 | — | 4.5 | (1.5 | ) | — | 3 | ||||||||||||||||||||||||||||||||||
Interest rate swaps | 0.2 | 0.2 | |||||||||||||||||||||||||||||||||||||||
Total | $ | 5.5 | $ | — | $ | 5.5 | $ | (1.5 | ) | $ | — | $ | 4 | ||||||||||||||||||||||||||||
Total | $ | 2.9 | $ | — | $ | 2.9 | $ | — | |||||||||||||||||||||||||||||||||
Fair value measures | |||||||||||||||||||||||||||||||||||||||||
Pursuant to the accounting guidance for fair value measurements and its subsequent updates, fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, we consider the principal or most advantageous market in which we would transact and we consider assumptions that market participants would use when pricing the asset or liability. | Gasoline swaps | ||||||||||||||||||||||||||||||||||||||||
Fair Value Hierarchy | Gasoline swaps classified as Level 2 assets and liabilities are priced using quoted market prices for similar assets or liabilities in active markets. | ||||||||||||||||||||||||||||||||||||||||
The accounting guidance for fair value measurements also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument's categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The inputs are prioritized into three levels that may be used to measure fair value: | Interest rate caps | ||||||||||||||||||||||||||||||||||||||||
Level 1: Inputs that reflect quoted prices for identical assets or liabilities in active markets that are observable. | Interest rate caps classified as Level 2 assets and liabilities are priced using quoted market prices for similar assets or liabilities in active markets. | ||||||||||||||||||||||||||||||||||||||||
Level 2: Inputs that reflect 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. | Foreign currency forward contracts | ||||||||||||||||||||||||||||||||||||||||
Level 3: Inputs that are unobservable to the extent that observable inputs are not available for the asset or liability at the measurement date. | Foreign currency forward contracts classified as Level 2 assets and liabilities are priced using quoted market prices for similar assets or liabilities in active markets. | ||||||||||||||||||||||||||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Foreign exchange options | ||||||||||||||||||||||||||||||||||||||||
Assets and liabilities measured at fair value on a recurring basis as of June 30, 2013 and December 31, 2012 were as follows (in millions): | Foreign currency forward contracts classified as Level 2 assets and liabilities are priced using quoted market prices for similar assets or liabilities in active markets. | ||||||||||||||||||||||||||||||||||||||||
Investments | |||||||||||||||||||||||||||||||||||||||||
Investments classified as Level 1 assets and liabilities are priced using quoted market prices for identical assets in active markets that are observable. | |||||||||||||||||||||||||||||||||||||||||
30-Jun-13 | Fair Value of Financial Instruments | ||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements Using | The fair values of cash and cash equivalents, 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. | ||||||||||||||||||||||||||||||||||||||||
Total | Quoted Prices in Active Markets | Significant | Significant | For borrowings with an initial maturity of 90 days or less, fair value approximates carrying value because of the short-term nature of these instruments. For all other debt, fair value is estimated based on quoted market rates as well as borrowing rates currently available to us for loans with similar terms and average maturities (Level 2 inputs). The aggregate fair value of all debt at December 31, 2012 was $15,529.4 million, compared to its aggregate unpaid principal balance of $14,999.1 million. The aggregate fair value of all debt at December 31, 2011 was $11,092.4 million, compared to its aggregate unpaid principal balance of $10,925.6 million. | |||||||||||||||||||||||||||||||||||||
for Identical | Other | Unobservable | |||||||||||||||||||||||||||||||||||||||
Instruments | Observable | Inputs | |||||||||||||||||||||||||||||||||||||||
(Level 1) | Inputs | (Level 3) | |||||||||||||||||||||||||||||||||||||||
(Level 2) | |||||||||||||||||||||||||||||||||||||||||
Prepaid Expenses and Other Assets: | |||||||||||||||||||||||||||||||||||||||||
Interest rate caps | $ | 0.6 | $ | — | $ | 0.6 | $ | — | |||||||||||||||||||||||||||||||||
Foreign currency forward contracts | 4.8 | — | 4.8 | — | |||||||||||||||||||||||||||||||||||||
Foreign exchange options | 0.1 | — | 0.1 | — | |||||||||||||||||||||||||||||||||||||
Total | $ | 5.5 | $ | — | $ | 5.5 | $ | — | |||||||||||||||||||||||||||||||||
Other Liabilities: | |||||||||||||||||||||||||||||||||||||||||
Gasoline swaps | $ | 0.9 | $ | — | $ | 0.9 | $ | — | |||||||||||||||||||||||||||||||||
Interest rate caps | $ | 0.6 | $ | — | $ | 0.6 | $ | — | |||||||||||||||||||||||||||||||||
Foreign currency forward contracts | 1.9 | — | 1.9 | — | |||||||||||||||||||||||||||||||||||||
Total | $ | 3.4 | $ | — | $ | 3.4 | $ | — | |||||||||||||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||||||||||||||||||||||||||
Total | Quoted Prices in Active Markets | Significant | Significant | ||||||||||||||||||||||||||||||||||||||
for Identical | Other | Unobservable | |||||||||||||||||||||||||||||||||||||||
Instruments | Observable | Inputs | |||||||||||||||||||||||||||||||||||||||
(Level 1) | Inputs | (Level 3) | |||||||||||||||||||||||||||||||||||||||
(Level 2) | |||||||||||||||||||||||||||||||||||||||||
Prepaid Expenses and Other Assets: | |||||||||||||||||||||||||||||||||||||||||
Interest rate caps | $ | 0.9 | $ | — | $ | 0.9 | $ | — | |||||||||||||||||||||||||||||||||
Foreign currency forward contracts | 3.4 | — | 3.4 | — | |||||||||||||||||||||||||||||||||||||
Foreign exchange options | 0.2 | — | 0.2 | — | |||||||||||||||||||||||||||||||||||||
Total | $ | 4.5 | $ | — | $ | 4.5 | $ | — | |||||||||||||||||||||||||||||||||
Other Liabilities: | |||||||||||||||||||||||||||||||||||||||||
Gasoline swaps | $ | 0.1 | $ | — | $ | 0.1 | $ | — | |||||||||||||||||||||||||||||||||
Interest rate caps | 0.9 | — | 0.9 | — | |||||||||||||||||||||||||||||||||||||
Foreign currency forward contracts | 4.5 | — | 4.5 | — | |||||||||||||||||||||||||||||||||||||
Total | $ | 5.5 | $ | — | $ | 5.5 | $ | — | |||||||||||||||||||||||||||||||||
Gasoline swaps | |||||||||||||||||||||||||||||||||||||||||
Gasoline swaps classified as Level 2 assets and liabilities are priced using quoted market prices for similar assets or liabilities in active markets. | |||||||||||||||||||||||||||||||||||||||||
Interest rate caps | |||||||||||||||||||||||||||||||||||||||||
Interest rate caps classified as Level 2 assets and liabilities are priced using quoted market prices for similar assets or liabilities in active markets. | |||||||||||||||||||||||||||||||||||||||||
Foreign currency forward contracts | |||||||||||||||||||||||||||||||||||||||||
Foreign currency forward contracts classified as Level 2 assets and liabilities are priced using quoted market prices for similar assets or liabilities in active markets. | |||||||||||||||||||||||||||||||||||||||||
Foreign exchange options | |||||||||||||||||||||||||||||||||||||||||
Foreign currency forward contracts classified as Level 2 assets and liabilities are priced using quoted market prices for similar assets or liabilities in active markets. | |||||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments | |||||||||||||||||||||||||||||||||||||||||
The fair values of cash and cash equivalents, 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. | |||||||||||||||||||||||||||||||||||||||||
Marketable securities held by us consist of debt securities classified as available-for-sale, which are carried at fair value and are included within "Prepaid expenses and other assets." Unrealized gains and losses, net of related income taxes, are included in "Accumulated other comprehensive loss." As of June 30, 2013 and December 31, 2012, the fair value of debt securities was $132.0 million and $0.0 million, respectively. For the three and six months ended June 30, 2013, unrealized gains of $2.0 million were recorded in "Accumulated other comprehensive loss." Hertz classifies its investment in the convertible notes within Level 3 because it is valued using significant unobservable inputs. To estimate the fair value, Hertz utilized a binomial valuation model. The most significant unobservable inputs we use are our estimates of the underlying equity value of the investee. The discount rates and volatility used in the measurements of fair value were between 6% - 21% and 36% - 42%, respectively, and are based on the underlying risk associated with our estimate of the underlying equity value of the investee, as well as the terms of the respective contracts. The credit rating of the investee, general business conditions, liquidity, and underlying equity value could materially affect the fair value of the convertible notes. Hertz periodically conducts reviews and engages valuation specialists to verify pricing and assesses liquidity to determine if significant inputs have changed that would impact the fair value hierarchy disclosure. For further information on assets classified as Level 3 measurement, see Note 5—Business Combinations and Divestitures. | |||||||||||||||||||||||||||||||||||||||||
The following table summarizes the changes in fair value measurement using Level 3 inputs for the three and six months ended June 30, 2013 (in millions of dollars): | |||||||||||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||||||||
30-Jun-13 | 30-Jun-13 | ||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements Using Level 3 Inputs Convertible Notes | |||||||||||||||||||||||||||||||||||||||||
Balance at the beginning of period | $ | — | $ | — | |||||||||||||||||||||||||||||||||||||
Realized gain (losses) included in earnings | — | — | |||||||||||||||||||||||||||||||||||||||
Unrealized gain related to investments | 2 | 2 | |||||||||||||||||||||||||||||||||||||||
Purchases | 130 | 130 | |||||||||||||||||||||||||||||||||||||||
Settlements | — | — | |||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2013 | $ | 132 | $ | 132 | |||||||||||||||||||||||||||||||||||||
For the three and six months ended June 30, 2012, unrealized gains of $0.0 million and $5.1 million, respectively, were recorded in "Accumulated other comprehensive loss." These mostly comprised previously held equity interest in Dollar Thrifty with fair values based on Level 1 inputs consisting of quoted market price. Hertz subsequently acquired all remaining shares of Dollar Thrifty common stock on November 19, 2012. For a further discussion of the Dollar Thrifty acquisition refer to Note 4 of the Notes to our audited annual consolidated financial statements included in our Form 10-K under the caption “Item 8—Financial Statements and Supplementary Data.” | |||||||||||||||||||||||||||||||||||||||||
For borrowings with an initial maturity of 90 days or less, fair value approximates carrying value because of the short-term nature of these instruments. For all other debt, fair value is estimated based on quoted market rates as well as borrowing rates currently available to us for loans with similar terms and average maturities (Level 2 inputs). The aggregate fair value of all debt at June 30, 2013 was $17,699.0 million, compared to its aggregate unpaid principal balance of $17,382.2 million. The aggregate fair value of all debt at December 31, 2012 was $15,529.4 million, compared to its aggregate unpaid principal balance of $14,999.1 million. |
Related_Party_Transactions1
Related Party Transactions | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2013 | Dec. 31, 2012 | ||
Related Party Transactions | |||
Related Party Transactions | Related Party Transactions | Related Party Transactions | |
Relationship with Hertz Investors, Inc., Hertz Holdings and the Sponsors | Relationship with Hertz Investors, Inc. and the Sponsors | ||
On December 21, 2005, investment funds associated with or designated by: | Stockholders Agreement | ||
In connection with the Acquisition, Hertz Holdings entered into a stockholders agreement (as amended, the “Stockholders Agreement”) with investment funds associated with or designated by the Sponsors. Based on current share ownership of the Sponsors, the Stockholders Agreement contains agreements that entitle investment funds associated with or designated by the Sponsors to nominate two nominees of an investment fund associated with CD&R (one of whom shall serve as the chairman or, if the chief executive officer is the chairman, the lead director), one nominee of investment funds associated with Carlyle, and one nominee of an investment fund associated with Merrill Lynch. The Stockholders Agreement also provides that Hertz Holdings' chief executive officer shall be designated as a director, unless otherwise approved by a majority of the Sponsor Designees. In addition, the Stockholders Agreement provides that one of the nominees of an investment fund associated with CD&R shall serve as the chairman of the executive and governance committee of Hertz Holdings and, unless otherwise agreed by this fund, as Chairman of the Board of Directors of Hertz Holdings or lead director. | |||
• | Clayton, Dubilier & Rice, Inc., which was succeeded by Clayton, Dubilier & Rice, LLC, or “CD&R,” | The Stockholders Agreement grants to the investment funds associated with CD&R or to the board, with the approval of the majority of the Sponsor Designees, the right to remove Hertz Holdings' chief executive officer. Any replacement chief executive officer requires the consent of the investment funds associated with CD&R as well as investment funds associated with at least one other Sponsor. It also contains restrictions on the transfer of Hertz Holdings' shares, and provides for tag-along and drag-along rights, in certain circumstances. The rights described above apply only for so long as the investment funds associated with the applicable Sponsor maintain certain specified minimum levels of shareholdings in Hertz Holdings. | |
The Stockholders Agreement limits the rights of the investment funds associated with or designated by the Sponsors that have invested in the common stock of Hertz Holdings and its affiliates, subject to several exceptions, to own, manage, operate or control any of our “competitors” (as defined in the Stockholders Agreement). The Stockholders Agreement may be amended from time to time in the future to eliminate or modify these restrictions without Hertz Holdings' consent. | |||
• | The Carlyle Group, or “Carlyle,” and | Registration Rights Agreement | |
On December 21, 2005, Hertz Holdings entered into a registration rights agreement (as amended, the “Registration Rights Agreement”) with investment funds associated with or designated by the Sponsors. The Registration Rights Agreement grants to certain of these investment funds the right, to cause Hertz Holdings, at its own expense, to use its best efforts to register such securities held by the investment funds for public resale, subject to certain limitations. The exercise of this right is limited to three requests by the group of investment funds associated with each Sponsor, except for registrations effected pursuant to Form S-3, which are unlimited, subject to certain limitations, if Hertz Holdings is eligible to use Form S-3. The secondary offerings of the common stock of Hertz Holdings in June 2007, May 2009, June 2009, March 2011 and December 2012 were effected pursuant to this Registration Rights Agreement. In the event Hertz Holdings registers any of its common stock, these investment funds have the right to require us to use our best efforts to include shares of the common stock of Hertz Holdings held by them, subject to certain limitations, including as determined by the underwriters. The Registration Rights Agreement provides for Hertz Holdings to indemnify the investment funds party to that agreement and their affiliates in connection with the registration of Hertz Holdings' securities. | |||
• | Merrill Lynch & Co., Inc., or "Merrill Lynch," | Director Compensation Policy | |
or collectively the “Sponsors,” acquired all of our common stock from Ford Holdings LLC. | Our directors who are also members of the Board of Directors of Hertz Holdings receive no additional compensation for serving on our Board of Directors or any committee of our Board of Directors. Currently all members of our Board of Directors are also members of the Board of Directors of Hertz Holdings. The compensation expense of the Hertz Holdings' directors is pushed down from Hertz Holdings and recorded on the books at the Hertz level. | ||
Other than as disclosed below, in the six months ended June 30, 2013, there were no material changes to our relationship with Hertz Investors, Inc., Hertz Holdings or the Sponsors. | In November 2011, Hertz Holdings' Board of Directors amended and restated the Director Compensation Policy. Pursuant to the policy prior to November 2011 its directors who are not also employees each received a $170,000 annual retainer fee, of which $70,000 was payable in cash and $100,000 was payable in the form of shares of Hertz Holdings' common stock. Starting in November 2011, the policy now provides that Hertz Holdings' directors who are not also employees each receive a $210,000 annual retainer fee, of which $85,000 is payable in cash and $125,000 is payable in the form of equity. In May 2012, Hertz Holdings' Board of Directors further amended and restated the Director Compensation Policy to provide that the equity portion of the annual retainer fee would be paid annually following the annual meeting of shareholders (or the eligible director's date of election, if applicable) in the form of restricted stock units having an equivalent fair market value equal to the annual equity award amount on the date of grant. The restricted stock units will vest on the business day immediately preceding the next annual meeting of shareholders. | ||
In March 2013, the Sponsors sold 60,050,777 shares of their Hertz Holdings common stock to Citigroup Global Markets Inc. and Barclays Capital Inc. as the underwriters in the registered public offering of those shares. In connection with the offering, Hertz Holdings repurchased from the underwriters 23,200,000 of the 60,050,777 shares of common stock sold by the Sponsors. | For 2013, the lead director of Hertz Holdings' is paid an additional annual cash fee of $100,000, the chairperson of Hertz Holdings' Audit Committee is paid an additional annual cash fee of $35,000 and each other member of its Audit Committee is paid an additional annual cash fee of $17,500. For 2013, the chairperson of Hertz Holdings' Compensation, Nominating and Governance Committee is paid an additional annual cash fee of $35,000 and each other member of its Compensation, Nominating and Governance Committee receives an additional annual cash fee of $17,500. | ||
In May 2013, the Sponsors sold 49,800,405 shares of their remaining Hertz Holdings common stock to Goldman, Sachs & Co. and J.P. Morgan Securities LLC as the underwriters in the registered public offering of those shares. | Financing Arrangements with Related Parties | ||
As a result of our initial public offering in November 2006 and subsequent offerings in June 2007, May 2009, June 2009, March 2011, December 2012, March 2013 and May 2013, the Sponsors do not own any shares of Hertz Holdings common stock, other than de minimus amounts held from time to time by the Sponsors and their affiliates in the ordinary course of business. | Affiliates of Merrill Lynch (which is one of the Sponsors), including Bank of America and certain of its affiliates, have provided various investment and commercial banking and financial advisory services to us for which they have received customary fees and commissions. In addition, these parties have acted as agents, lenders, purchasers and/or underwriters to us under our respective financing arrangements, for which they have received customary fees, commissions, expenses and/or other compensation. More specifically, these parties have acted in the following capacities, or similar capacities, with respect to our financing arrangements: lenders and/or agents under the Senior Credit Facilities, the U.S. Fleet Financing Facility and certain of the U.S. Fleet Variable Funding Notes; purchasers and/or underwriters under the Senior Notes and certain of the U.S. Fleet Medium Term Notes; and structuring advisors and/or agents under the U.S. ABS Program. | ||
On May 15, 2013, Angel L. Morales, a director of Hertz Holdings and its wholly-owned subsidiary Hertz, or the "Companies," notified the Boards of Directors of the Companies that he was resigning as a director of the Companies effective immediately after the Board of Directors meeting held after the 2013 Annual Meeting held on the same day. Mr. Morales' decision to resign did not involve any disagreement with the Companies, the management of the Companies or the Boards of Directors of the Companies. | As of December 31, 2012 and December 31, 2011, approximately $189.8 million and $174.4 million, respectively, of our outstanding debt was with related parties. | ||
Financing Arrangements with Related Parties | For information on our total indebtedness, see Note 5—Debt. | ||
Based on the Sponsors' sale of shares in May 2013, none of our outstanding debt at June 30, 2013 was with related parties. As of December 31, 2012, approximately $189.8 million of our outstanding debt was with related parties. | On June 29, 2007, we entered into a master loan agreement with Hertz Holdings. The maximum amount which may be borrowed by us under this facility is $100 million. The facility expired June 29, 2012 and was renewed through June 28, 2013. The interest rate is based on the U.S. Dollar LIBOR rate plus a margin. As of December 31, 2012, there was a $12.8 million receivable from Hertz Holdings and as of December 31, 2012, there was $0.4 million in borrowings due to Hertz Holdings. | ||
For information on our total indebtedness, see Note 8—Debt. | |||
Other Sponsor Relationships | |||
In May and June 2009, Merrill Lynch, one of the Sponsors, acted as an underwriter in the common stock follow-on public offering and in the public offering of Hertz Holdings' Convertible Senior Notes, for which they received customary fees and expenses. | |||
In May 2009 Hertz Holdings entered into subscription agreements with investment funds affiliated with CD&R and Carlyle to purchase an additional 32,101,182 shares of Hertz Holdings' common stock at a price of $6.23 per share (the same price per share paid to Hertz Holdings by the underwriters in the common stock public offering) with proceeds to us of approximately $200.0 million. This closed on July 7, 2009 and the 32,101,182 shares of Hertz Holdings' common stock were issued to CD&R and Carlyle affiliated investment funds on the same date. In March 2011 and December 2012, the Sponsors sold 50,000,000 shares of their Hertz Holdings common stock to Goldman, Sachs & Co. and 50,000,000 shares of their Hertz Holdings common stock to J.P. Morgan, respectively, in each case as the sole underwriter in the registered public offering of those shares. Giving effect to these offerings, the Sponsors' ownership percentage in Hertz Holdings is approximately 26%. |
Quarterly_Financial_Informatio
Quarterly Financial Information (Unaudited) | 12 Months Ended | |||||||||||||||
Dec. 31, 2012 | ||||||||||||||||
Quarterly Financial Information (Unaudited) | ||||||||||||||||
Quarterly Financial Information | Quarterly Financial Information (Unaudited) | |||||||||||||||
Provided below is a summary of the quarterly operating results during 2012 and 2011 (in millions of dollars). | ||||||||||||||||
First | Second | Third | Fourth | |||||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||||
2012 | 2012 | 2012 | 2012 | |||||||||||||
Revenues | $ | 1,960.90 | $ | 2,225.10 | $ | 2,516.20 | $ | 2,318.60 | ||||||||
Income (loss) before income taxes | (24.0 | ) | 171.7 | 382.1 | (26.9 | ) | ||||||||||
Net income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder | (48.2 | ) | 101 | 251.3 | (28.3 | ) | ||||||||||
First | Second | Third | Fourth | |||||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||||
2011 | 2011 | 2011 | 2011 | |||||||||||||
Revenues | $ | 1,780.00 | $ | 2,072.30 | $ | 2,432.30 | $ | 2,013.80 | ||||||||
Income (loss) before income taxes | (146.7 | ) | 107 | 308.2 | 105.4 | |||||||||||
Net income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder | (123.0 | ) | 62.1 | 212.6 | 58.8 | |||||||||||
Guarantor_and_NonGuarantor_Con6
Guarantor and Non-Guarantor Condensed Consolidating Financial Statements | 6 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | |||||||||||||||||||||||||||||||||||||||
Guarantor and Non-Guarantor Condensed Consolidating Financial Statements | ||||||||||||||||||||||||||||||||||||||||
Guarantor and Non-Guarantor Condensed Consolidating Financial Statements | Guarantor and Non-Guarantor Condensed Consolidating Financial Statements | Guarantor and Non-Guarantor Condensed Consolidating Financial Statements | ||||||||||||||||||||||||||||||||||||||
The following condensed consolidating financial information presents the Condensed Consolidating Balance Sheets as of June 30, 2013 and December 31, 2012 and the Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) for the three and six month periods ended June 30, 2013 and 2012, and Statements of Cash Flows for the six months ended June 30, 2013 and 2012, of (a) The Hertz Corporation, (“the Company” or “the Parent”); (b) the Parent's subsidiaries that guarantee the Parent's indebtedness, or the Guarantor Subsidiaries; (c) the Parent's subsidiaries that do not guarantee the Parent's indebtedness, or the Non-Guarantor Subsidiaries; (d) elimination entries necessary to consolidate the Parent with the Guarantor Subsidiaries and Non-Guarantor Subsidiaries; and of (e) the Company on a consolidated basis. | The following condensed consolidating financial information presents the Condensed Consolidating Balance Sheets as of December 31, 2012 and 2011 and the Condensed Consolidating Statements of Operations, Comprehensive Income (Loss) and Cash Flows for the years ended December 31, 2012, 2011 and 2010, and Statements of Cash Flows for the years ended December 31, 2012, 2011 and 2010, of (a) The Hertz Corporation, (“the Company” or “the Parent”); (b) the Parent's subsidiaries that guarantee the Parent's indebtedness, or the Guarantor Subsidiaries; (c) the Parent's subsidiaries that do not guarantee the Parent's indebtedness, or the Non-Guarantor Subsidiaries; (d) elimination entries necessary to consolidate the Parent with the Guarantor Subsidiaries and Non-Guarantor Subsidiaries; and of (e) the Company on a consolidated basis. The Guarantor Subsidiaries are consistent with those entities which guaranteed the Company's existing indebtedness as of December 31, 2011 and December 31, 2010, with the exception of the Company's Simply Wheelz subsidiary which was sold in connection with the Advantage divestiture, as more fully described below, and therefore is not included as a guarantor of the debt in this Form 10-K. | |||||||||||||||||||||||||||||||||||||||
On December 12, 2012, pursuant to a consent agreement Hertz Holdings entered into with the Federal Trade Commission in connection with the Dollar Thrifty acquisition, we consummated the Advantage Divestiture. Prior to the Advantage Divestiture, Simply Wheelz, the legal entity associated with Advantage, had been included within these condensed consolidating financial statements as a Guarantor Subsidiary. The following condensed consolidating financial statements which include Simply Wheelz now reflects it as a Non-Guarantor Subsidiary for all periods presented. | ||||||||||||||||||||||||||||||||||||||||
In February 2013 and March 2013, we added Dollar Thrifty and certain of its subsidiaries as guarantors under certain of our debt instruments and credit facilities. The following condensed consolidating financial statements now reflects the results of this change for all periods presented. | ||||||||||||||||||||||||||||||||||||||||
Investments in subsidiaries are accounted for using the equity method for purposes of the consolidating presentation. The principal elimination entries relate to investments in subsidiaries and intercompany balances and transactions. Separate financial statements and other disclosures with respect to the Guarantor Subsidiaries have not been provided as management believes the following information is sufficient, as the Guarantor Subsidiaries are 100% owned by the Parent and all guarantees are full and unconditional and joint and several. Additionally, substantially all of the assets of the Guarantor Subsidiaries are pledged under the Senior Credit Facilities, and consequently will not be available to satisfy the claims of our general creditors. | ||||||||||||||||||||||||||||||||||||||||
Investments in subsidiaries are accounted for using the equity method for purposes of the consolidating presentation. The principal elimination entries relate to investments in subsidiaries and intercompany balances and transactions. Separate financial statements and other disclosures with respect to the Guarantor Subsidiaries have not been provided, as the Guarantor Subsidiaries are 100% owned by the Parent and all guarantees are full and unconditional and joint and several. Additionally, substantially all of the assets of the Guarantor Subsidiaries are pledged under the Senior Credit Facilities, and consequently will not be available to satisfy the claims of our general creditors. | CONDENSED CONSOLIDATING BALANCE SHEET | |||||||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | 31-Dec-12 | |||||||||||||||||||||||||||||||||||||||
30-Jun-13 | (In Thousands of Dollars) | |||||||||||||||||||||||||||||||||||||||
(In Millions of Dollars) | ||||||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | ||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | (The Hertz | Subsidiaries | Guarantor | Corporation & | ||||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | Corporation) | Subsidiaries | Subsidiaries | ||||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | ASSETS | |||||||||||||||||||||||||||||||||||||
ASSETS | Cash and cash equivalents | $ | 24,602 | $ | 2,578 | $ | 506,055 | $ | — | $ | 533,235 | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 87.5 | $ | 24.5 | $ | 371 | $ | — | $ | 483 | ||||||||||||||||||||||||||||||
Restricted cash and cash equivalents | 32,681 | 14,535 | 524,418 | — | 571,634 | |||||||||||||||||||||||||||||||||||
Restricted cash and cash equivalents | 33.7 | 17 | 342.5 | — | 393.2 | |||||||||||||||||||||||||||||||||||
Receivables, less allowance for doubtful accounts | 544,454 | 292,467 | 1,049,675 | — | 1,886,596 | |||||||||||||||||||||||||||||||||||
Receivables, less allowance for doubtful accounts | 500.8 | 482.1 | 719.3 | (46.2 | ) | 1,656.00 | ||||||||||||||||||||||||||||||||||
Due from Hertz affiliate | 1,047,986 | 59,181 | 2,199,247 | (3,293,605 | ) | 12,809 | ||||||||||||||||||||||||||||||||||
Due from Hertz affiliate | 1,042.70 | 1,842.70 | 3,691.70 | (6,576.3 | ) | 0.8 | ||||||||||||||||||||||||||||||||||
Inventories, at lower cost or market | 24,422 | 34,101 | 47,205 | — | 105,728 | |||||||||||||||||||||||||||||||||||
Inventories, at lower cost or market | 30.8 | 39.8 | 57.7 | — | 128.3 | |||||||||||||||||||||||||||||||||||
Prepaid expenses and other assets | 2,570,539 | 183,573 | 203,678 | (2,496,288 | ) | 461,502 | ||||||||||||||||||||||||||||||||||
Prepaid expenses and other assets | 2,894.70 | 244.3 | 407.2 | (2,783.0 | ) | 763.2 | ||||||||||||||||||||||||||||||||||
Revenue earning equipment, net | 104,207 | 1,734,325 | 11,069,804 | — | 12,908,336 | |||||||||||||||||||||||||||||||||||
Revenue earning equipment, net | 175.3 | 1,893.00 | 13,637.70 | — | 15,706.00 | |||||||||||||||||||||||||||||||||||
Property and equipment, net | 865,694 | 206,332 | 364,360 | — | 1,436,386 | |||||||||||||||||||||||||||||||||||
Property and equipment, net | 897.6 | 315.1 | 252.9 | — | 1,465.60 | |||||||||||||||||||||||||||||||||||
Investment in subsidiaries, net | 6,964,916 | 506,123 | — | (7,471,039 | ) | — | ||||||||||||||||||||||||||||||||||
Investment in subsidiaries, net | 6,833.10 | 1,367.90 | — | (8,201.0 | ) | — | ||||||||||||||||||||||||||||||||||
Other intangible assets, net | 74,606 | 2,352,342 | 1,605,163 | — | 4,032,111 | |||||||||||||||||||||||||||||||||||
Other intangible assets, net | 70.2 | 3,848.10 | 50.2 | — | 3,968.50 | |||||||||||||||||||||||||||||||||||
Goodwill | 106,210 | 133,923 | 1,101,739 | — | 1,341,872 | |||||||||||||||||||||||||||||||||||
Goodwill | 106.2 | 1,035.60 | 224.5 | — | 1,366.30 | |||||||||||||||||||||||||||||||||||
Total assets | $ | 12,360,317 | $ | 5,519,480 | $ | 18,671,344 | $ | (13,260,932 | ) | $ | 23,290,209 | |||||||||||||||||||||||||||||
Total assets | $ | 12,672.60 | $ | 11,110.10 | $ | 19,754.70 | $ | (17,606.5 | ) | $ | 25,930.90 | |||||||||||||||||||||||||||||
LIABILITIES AND EQUITY | ||||||||||||||||||||||||||||||||||||||||
LIABILITIES AND EQUITY | ||||||||||||||||||||||||||||||||||||||||
Due to Hertz affiliate | $ | 2,254,223 | $ | 628,275 | $ | 411,107 | $ | (3,293,605 | ) | $ | — | |||||||||||||||||||||||||||||
Due to Hertz affiliate | $ | 2,097.10 | $ | 2,498.80 | $ | 1,980.40 | $ | (6,576.3 | ) | $ | — | |||||||||||||||||||||||||||||
Accounts payable | 239,247 | 157,742 | 602,072 | — | 999,061 | |||||||||||||||||||||||||||||||||||
Accounts payable | 165.2 | 267.9 | 1,051.40 | — | 1,484.50 | |||||||||||||||||||||||||||||||||||
Accrued liabilities | 605,680 | 84,992 | 487,788 | — | 1,178,460 | |||||||||||||||||||||||||||||||||||
Accrued liabilities | 642.7 | 242.2 | 343.6 | (46.2 | ) | 1,182.30 | ||||||||||||||||||||||||||||||||||
Accrued taxes | 54,357 | 11,511 | 1,003,127 | (901,681 | ) | 167,314 | ||||||||||||||||||||||||||||||||||
Accrued taxes | 60.3 | 33.9 | 1,335.00 | (1,245.6 | ) | 183.6 | ||||||||||||||||||||||||||||||||||
Debt | 6,190,040 | 49,445 | 8,774,989 | — | 15,014,474 | |||||||||||||||||||||||||||||||||||
Debt | 7,042.30 | 68.5 | 10,283.40 | — | 17,394.20 | |||||||||||||||||||||||||||||||||||
Public liability and property damage | 99,261 | 10,390 | 222,581 | — | 332,232 | |||||||||||||||||||||||||||||||||||
Public liability and property damage | 93 | 58.5 | 176 | — | 327.5 | |||||||||||||||||||||||||||||||||||
Deferred taxes on income | — | 1,776,199 | 2,499,548 | (1,594,607 | ) | 2,681,140 | ||||||||||||||||||||||||||||||||||
Deferred taxes on income | — | 2,232.70 | 2,091.50 | (1,537.4 | ) | 2,786.80 | ||||||||||||||||||||||||||||||||||
Total liabilities | 9,442,808 | 2,718,554 | 14,001,212 | (5,789,893 | ) | 20,372,681 | ||||||||||||||||||||||||||||||||||
Total liabilities | 10,100.60 | 5,402.50 | 17,261.30 | (9,405.5 | ) | 23,358.90 | ||||||||||||||||||||||||||||||||||
Equity: | ||||||||||||||||||||||||||||||||||||||||
Equity: | ||||||||||||||||||||||||||||||||||||||||
The Hertz Corporation and Subsidiaries stockholder's equity | 2,917,509 | 2,800,926 | 4,670,113 | (7,471,039 | ) | 2,917,509 | ||||||||||||||||||||||||||||||||||
The Hertz Corporation and Subsidiaries stockholder's equity | 2,572.00 | 5,707.60 | 2,493.40 | (8,201.0 | ) | 2,572.00 | ||||||||||||||||||||||||||||||||||
Noncontrolling interest | — | — | 19 | — | 19 | |||||||||||||||||||||||||||||||||||
Noncontrolling interest | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Total equity | 2,917,509 | 2,800,926 | 4,670,132 | (7,471,039 | ) | 2,917,528 | ||||||||||||||||||||||||||||||||||
Total equity | 2,572.00 | 5,707.60 | 2,493.40 | (8,201.0 | ) | 2,572.00 | ||||||||||||||||||||||||||||||||||
Total liabilities and equity | $ | 12,360,317 | $ | 5,519,480 | $ | 18,671,344 | $ | (13,260,932 | ) | $ | 23,290,209 | |||||||||||||||||||||||||||||
Total liabilities and equity | $ | 12,672.60 | $ | 11,110.10 | $ | 19,754.70 | $ | (17,606.5 | ) | $ | 25,930.90 | |||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | ||||||||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | 31-Dec-11 | |||||||||||||||||||||||||||||||||||||||
31-Dec-12 | (In Thousands of Dollars) | |||||||||||||||||||||||||||||||||||||||
(In Millions of Dollars) | ||||||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | ||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | (The Hertz | Subsidiaries | Guarantor | Corporation & | ||||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | Corporation) | Subsidiaries | Subsidiaries | ||||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | ASSETS | |||||||||||||||||||||||||||||||||||||
ASSETS | Cash and cash equivalents | $ | 565,002 | $ | 7,385 | $ | 358,821 | $ | — | $ | 931,208 | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 24.6 | $ | 6.5 | $ | 502.1 | $ | — | $ | 533.2 | ||||||||||||||||||||||||||||||
Restricted cash and cash equivalents | 44,663 | 28,130 | 235,246 | — | 308,039 | |||||||||||||||||||||||||||||||||||
Restricted cash and cash equivalents | 32.7 | 17.1 | 521.8 | — | 571.6 | |||||||||||||||||||||||||||||||||||
Receivables, less allowance for doubtful accounts | 297,292 | 218,754 | 1,100,336 | — | 1,616,382 | |||||||||||||||||||||||||||||||||||
Receivables, less allowance for doubtful accounts | 544.5 | 444 | 924.7 | (26.6 | ) | 1,886.60 | ||||||||||||||||||||||||||||||||||
Due from Hertz affiliate | 655,411 | 65,972 | 1,194,041 | (1,915,424 | ) | — | ||||||||||||||||||||||||||||||||||
Due from Hertz affiliate | 1,048.00 | 2,023.50 | 3,491.70 | (6,550.4 | ) | 12.8 | ||||||||||||||||||||||||||||||||||
Inventories, at lower cost or market | 22,440 | 26,541 | 34,997 | — | 83,978 | |||||||||||||||||||||||||||||||||||
Inventories, at lower cost or market | 24.4 | 41.2 | 40.1 | — | 105.7 | |||||||||||||||||||||||||||||||||||
Prepaid expenses and other assets | 2,088,579 | 32,974 | 137,189 | (1,842,608 | ) | 416,134 | ||||||||||||||||||||||||||||||||||
Prepaid expenses and other assets | 2,570.50 | 277.8 | 173.3 | (2,560.1 | ) | 461.5 | ||||||||||||||||||||||||||||||||||
Revenue earning equipment, net | 167,304 | 1,505,867 | 8,432,238 | — | 10,105,409 | |||||||||||||||||||||||||||||||||||
Revenue earning equipment, net | 104.2 | 1,678.50 | 11,125.60 | — | 12,908.30 | |||||||||||||||||||||||||||||||||||
Property and equipment, net | 824,381 | 170,874 | 256,599 | — | 1,251,854 | |||||||||||||||||||||||||||||||||||
Property and equipment, net | 865.7 | 321.9 | 248.8 | — | 1,436.40 | |||||||||||||||||||||||||||||||||||
Investment in subsidiaries, net | 4,413,289 | 460,201 | — | (4,873,490 | ) | — | ||||||||||||||||||||||||||||||||||
Investment in subsidiaries, net | 6,964.90 | 1,260.90 | — | (8,225.8 | ) | — | ||||||||||||||||||||||||||||||||||
Other intangible assets, net | 94,682 | 2,363,617 | 103,935 | — | 2,562,234 | |||||||||||||||||||||||||||||||||||
Other intangible assets, net | 74.6 | 3,893.30 | 64.2 | — | 4,032.10 | |||||||||||||||||||||||||||||||||||
Goodwill | 100,221 | 67,228 | 224,645 | — | 392,094 | |||||||||||||||||||||||||||||||||||
Goodwill | 106.2 | 1,018.90 | 216.8 | — | 1,341.90 | |||||||||||||||||||||||||||||||||||
Total assets | $ | 9,273,264 | $ | 4,947,543 | $ | 12,078,047 | $ | (8,631,522 | ) | $ | 17,667,332 | |||||||||||||||||||||||||||||
Total assets | $ | 12,360.30 | $ | 10,983.60 | $ | 17,309.10 | $ | (17,362.9 | ) | $ | 23,290.10 | |||||||||||||||||||||||||||||
LIABILITIES AND EQUITY | ||||||||||||||||||||||||||||||||||||||||
LIABILITIES AND EQUITY | ||||||||||||||||||||||||||||||||||||||||
Due to Hertz affiliate | $ | 1,251,347 | $ | 266,604 | $ | 397,885 | $ | (1,915,424 | ) | $ | 412 | |||||||||||||||||||||||||||||
Due to Hertz affiliate | $ | 2,254.20 | $ | 2,421.60 | $ | 1,874.60 | $ | (6,550.4 | ) | $ | — | |||||||||||||||||||||||||||||
Accounts payable | 188,695 | 165,258 | 543,536 | — | 897,489 | |||||||||||||||||||||||||||||||||||
Accounts payable | 239.2 | 193.9 | 566 | — | 999.1 | |||||||||||||||||||||||||||||||||||
Accrued liabilities | 607,673 | 209,263 | 309,402 | — | 1,126,338 | |||||||||||||||||||||||||||||||||||
Accrued liabilities | 605.7 | 45 | 554.3 | (26.6 | ) | 1,178.40 | ||||||||||||||||||||||||||||||||||
Accrued taxes | 54,559 | 134,186 | (13,889 | ) | (11,872 | ) | 162,984 | |||||||||||||||||||||||||||||||||
Accrued taxes | 54.4 | 29.1 | 1,049.30 | (965.5 | ) | 167.3 | ||||||||||||||||||||||||||||||||||
Debt | 4,434,274 | 4,237 | 6,469,338 | — | 10,907,849 | |||||||||||||||||||||||||||||||||||
Debt | 6,190.00 | 67.7 | 8,756.80 | — | 15,014.50 | |||||||||||||||||||||||||||||||||||
Public liability and property damage | 107,881 | 14,025 | 159,628 | — | 281,534 | |||||||||||||||||||||||||||||||||||
Public liability and property damage | 99.3 | 52.8 | 180.1 | — | 332.2 | |||||||||||||||||||||||||||||||||||
Deferred taxes on income | — | 1,449,171 | 2,043,437 | (1,830,736 | ) | 1,661,872 | ||||||||||||||||||||||||||||||||||
Deferred taxes on income | — | 2,205.60 | 2,070.10 | (1,594.6 | ) | 2,681.10 | ||||||||||||||||||||||||||||||||||
Total liabilities | 6,644,429 | 2,242,744 | 9,909,337 | (3,758,032 | ) | 15,038,478 | ||||||||||||||||||||||||||||||||||
Total liabilities | 9,442.80 | 5,015.70 | 15,051.20 | (9,137.1 | ) | 20,372.60 | ||||||||||||||||||||||||||||||||||
Equity: | ||||||||||||||||||||||||||||||||||||||||
Equity: | ||||||||||||||||||||||||||||||||||||||||
The Hertz Corporation and Subsidiaries stockholder's equity | 2,628,835 | 2,704,799 | 2,168,691 | (4,873,490 | ) | 2,628,835 | ||||||||||||||||||||||||||||||||||
The Hertz Corporation and Subsidiaries stockholder's equity | 2,917.50 | 5,967.90 | 2,257.90 | (8,225.8 | ) | 2,917.50 | ||||||||||||||||||||||||||||||||||
Noncontrolling interest | — | — | 19 | — | 19 | |||||||||||||||||||||||||||||||||||
Noncontrolling interest | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Total equity | 2,628,835 | 2,704,799 | 2,168,710 | (4,873,490 | ) | 2,628,854 | ||||||||||||||||||||||||||||||||||
Total equity | 2,917.50 | 5,967.90 | 2,257.90 | (8,225.8 | ) | 2,917.50 | ||||||||||||||||||||||||||||||||||
Total liabilities and equity | $ | 9,273,264 | $ | 4,947,543 | $ | 12,078,047 | $ | (8,631,522 | ) | $ | 17,667,332 | |||||||||||||||||||||||||||||
Total liabilities and equity | $ | 12,360.30 | $ | 10,983.60 | $ | 17,309.10 | $ | (17,362.9 | ) | $ | 23,290.10 | |||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | |||||||||||||||||||||||||||||||||||||||
For the Three Months Ended June 30, 2013 | For the Year Ended December 31, 2012 | |||||||||||||||||||||||||||||||||||||||
(In Millions of Dollars) | (In Thousands of Dollars) | |||||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | Parent | Guarantor | Non- | Eliminations | The Hertz | |||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | (The Hertz | Subsidiaries | Guarantor | Corporation & | |||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | Corporation) | Subsidiaries | Subsidiaries | |||||||||||||||||||||||||||||||||||
Total revenues | $ | 1,147.00 | $ | 662.8 | $ | 1,617.50 | $ | (712.7 | ) | $ | 2,714.60 | Total revenues | $ | 4,259,049 | $ | 975,500 | $ | 6,255,039 | $ | (2,468,781 | ) | $ | 9,020,807 | |||||||||||||||||
Expenses: | Expenses: | |||||||||||||||||||||||||||||||||||||||
Direct operating | 2,384,829 | 553,099 | 1,857,860 | — | 4,795,788 | |||||||||||||||||||||||||||||||||||
Direct operating | 618.8 | 357.1 | 430.3 | (0.3 | ) | 1,405.90 | ||||||||||||||||||||||||||||||||||
Depreciation of revenue earning equipment and lease charges | 2,402,032 | 198,322 | 2,016,585 | (2,468,781 | ) | 2,148,158 | ||||||||||||||||||||||||||||||||||
Depreciation of revenue earning equipment and lease charges | 608 | 168.9 | 576.4 | (712.2 | ) | 641.1 | ||||||||||||||||||||||||||||||||||
Selling, general and administrative | 448,100 | 123,300 | 374,181 | — | 945,581 | |||||||||||||||||||||||||||||||||||
Selling, general and administrative | 122.3 | 64.7 | 88 | (0.2 | ) | 274.8 | ||||||||||||||||||||||||||||||||||
Interest expense, net of interest income | 253,437 | 39,679 | 299,770 | — | 592,886 | |||||||||||||||||||||||||||||||||||
Interest expense | 88 | 8.5 | 73.7 | — | 170.2 | |||||||||||||||||||||||||||||||||||
Other (income) expense, net | (10,656 | ) | (19 | ) | 46,217 | — | 35,542 | |||||||||||||||||||||||||||||||||
Interest income | — | (1.6 | ) | (0.4 | ) | — | (2.0 | ) | ||||||||||||||||||||||||||||||||
Total expenses | 5,477,742 | 914,381 | 4,594,613 | (2,468,781 | ) | 8,517,955 | ||||||||||||||||||||||||||||||||||
Other (income) expense, net | 14.5 | (2.2 | ) | (13.4 | ) | — | (1.1 | ) | ||||||||||||||||||||||||||||||||
Income (loss) before income taxes and equity in earnings (losses) of subsidiaries | (1,218,693 | ) | 61,119 | 1,660,426 | — | 502,852 | ||||||||||||||||||||||||||||||||||
Total expenses | 1,451.60 | 595.4 | 1,154.60 | (712.7 | ) | 2,488.90 | ||||||||||||||||||||||||||||||||||
(Provision) benefit for taxes on income | 476,444 | (44,846 | ) | (658,671 | ) | — | (227,073 | ) | ||||||||||||||||||||||||||||||||
Income (loss) before income taxes and equity in earnings (losses) of subsidiaries | (304.6 | ) | 67.4 | 462.9 | — | 225.7 | ||||||||||||||||||||||||||||||||||
Equity in earnings (losses) of subsidiaries (net of tax) | 1,018,028 | 45,922 | — | (1,063,950 | ) | — | ||||||||||||||||||||||||||||||||||
(Provision) benefit for taxes on income | 109.3 | (25.2 | ) | (179.9 | ) | — | (95.8 | ) | ||||||||||||||||||||||||||||||||
Net income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder | $ | 275,779 | $ | 62,195 | $ | 1,001,755 | $ | (1,063,950 | ) | $ | 275,779 | |||||||||||||||||||||||||||||
Equity in earnings (losses) of subsidiaries (net of tax) | 325.2 | 56.8 | — | (382.0 | ) | — | ||||||||||||||||||||||||||||||||||
Net income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder | $ | 129.9 | $ | 99 | $ | 283 | $ | (382.0 | ) | $ | 129.9 | CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | ||||||||||||||||||||||||||||
For the Year Ended December 31, 2011 | ||||||||||||||||||||||||||||||||||||||||
(In Thousands of Dollars) | ||||||||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | ||||||||||||||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2013 | ||||||||||||||||||||||||||||||||||||||||
(In Millions of Dollars) | ||||||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | ||||||||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | |||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | Corporation) | Subsidiaries | Subsidiaries | |||||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | Total revenues | $ | 4,068,310 | $ | 809,093 | $ | 5,733,827 | $ | (2,312,850 | ) | $ | 8,298,380 | |||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | ||||||||||||||||||||||||||||||||||||||
Total revenues | $ | 2,201.60 | $ | 1,284.90 | $ | 3,120.60 | $ | (1,455.9 | ) | $ | 5,151.20 | Expenses: | ||||||||||||||||||||||||||||
Expenses: | Direct operating | 2,262,371 | 497,053 | 1,806,954 | — | 4,566,378 | ||||||||||||||||||||||||||||||||||
Direct operating | 1,231.70 | 710 | 815.9 | (0.5 | ) | 2,757.10 | Depreciation of revenue earning equipment and lease charges | 1,996,733 | 180,807 | 2,041,049 | (2,312,850 | ) | 1,905,739 | |||||||||||||||||||||||||||
Depreciation of revenue earning equipment and lease charges | 1,269.40 | 321.3 | 1,092.60 | (1,455.2 | ) | 1,228.10 | Selling, general and administrative | 326,794 | 85,414 | 332,909 | — | 745,117 | ||||||||||||||||||||||||||||
Selling, general and administrative | 229.5 | 124.4 | 172.6 | (0.2 | ) | 526.3 | Interest expense, net of interest income | 299,099 | 27,226 | 318,378 | — | 644,703 | ||||||||||||||||||||||||||||
Interest expense | 169.1 | 18.8 | 145.6 | — | 333.5 | Other (income) expense, net | 62,396 | (18 | ) | 170 | — | 62,548 | ||||||||||||||||||||||||||||
Interest income | — | (3.1 | ) | (0.7 | ) | — | (3.8 | ) | Total expenses | 4,947,393 | 790,482 | 4,499,460 | (2,312,850 | ) | 7,924,485 | |||||||||||||||||||||||||
Other (income) expense, net | 14.3 | (2.2 | ) | (13.8 | ) | — | (1.7 | ) | Income (loss) before income taxes, noncontrolling interest and equity in earnings (losses) of subsidiaries | (879,083 | ) | 18,611 | 1,234,367 | — | 373,895 | |||||||||||||||||||||||||
Total expenses | 2,914.00 | 1,169.20 | 2,212.20 | (1,455.9 | ) | 4,839.50 | (Provision) benefit for taxes on income (loss) | 342,469 | (10,016 | ) | (476,299 | ) | — | (143,846 | ) | |||||||||||||||||||||||||
Income (loss) before income taxes and equity in earnings (losses) of subsidiaries | (712.4 | ) | 115.7 | 908.4 | — | 311.7 | Equity in earnings (losses) of subsidiaries (net of tax) | 747,103 | 26,215 | — | (773,318 | ) | — | |||||||||||||||||||||||||||
(Provision) benefit for taxes on income | 257.5 | (43.1 | ) | (369.7 | ) | — | (155.3 | ) | Net income (loss) | 210,489 | 34,810 | 758,068 | (773,318 | ) | 230,049 | |||||||||||||||||||||||||
Equity in earnings (losses) of subsidiaries (net of tax) | 611.3 | 111.6 | — | (722.9 | ) | — | Less: Net income attributable to noncontrolling interest | — | — | (19,560 | ) | — | (19,560 | ) | ||||||||||||||||||||||||||
Net income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder | $ | 156.4 | $ | 184.2 | $ | 538.7 | $ | (722.9 | ) | $ | 156.4 | Net income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder | $ | 210,489 | $ | 34,810 | $ | 738,508 | $ | (773,318 | ) | $ | 210,489 | |||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | ||||||||||||||||||||||||||||||||||||||||
For the Year Ended December 31, 2010 | ||||||||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | (In Thousands of Dollars) | |||||||||||||||||||||||||||||||||||||||
For the Three Months Ended June 30, 2012 | ||||||||||||||||||||||||||||||||||||||||
(In Millions of Dollars) | ||||||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | ||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | (The Hertz | Subsidiaries | Guarantor | Corporation & | ||||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | Corporation) | Subsidiaries | Subsidiaries | ||||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | Total revenues | $ | 3,961,435 | $ | 701,264 | $ | 5,350,348 | $ | (2,450,513 | ) | $ | 7,562,534 | ||||||||||||||||||||||||||
Total revenues | $ | 1,074.90 | $ | 233.1 | $ | 1,493.10 | $ | (576.0 | ) | $ | 2,225.10 | |||||||||||||||||||||||||||||
Expenses: | ||||||||||||||||||||||||||||||||||||||||
Expenses: | ||||||||||||||||||||||||||||||||||||||||
Direct operating | 609.4 | 141.1 | 438.4 | — | 1,188.90 | Direct operating | 2,217,864 | 452,674 | 1,612,856 | — | 4,283,394 | |||||||||||||||||||||||||||||
Depreciation of revenue earning equipment and lease charges | 560.6 | 48 | 487.2 | (576.0 | ) | 519.8 | Depreciation of revenue earning equipment and lease charges | 1,938,416 | 200,252 | 2,179,992 | (2,450,513 | ) | 1,868,147 | |||||||||||||||||||||||||||
Selling, general and administrative | 94.4 | 31.4 | 80.8 | — | 206.6 | Selling, general and administrative | 320,192 | 67,739 | 276,511 | — | 664,442 | |||||||||||||||||||||||||||||
Interest expense | 56 | 9.1 | 74.2 | — | 139.3 | Interest expense, net of interest income | 297,276 | 20,068 | 396,880 | — | 714,224 | |||||||||||||||||||||||||||||
Interest income | — | (0.2 | ) | (0.3 | ) | — | (0.5 | ) | Other (income) expense, net | 9,915 | (3 | ) | (9,907 | ) | — | 5 | ||||||||||||||||||||||||
Other (income) expense, net | — | — | (0.6 | ) | — | (0.6 | ) | Total expenses | 4,783,663 | 740,730 | 4,456,332 | (2,450,513 | ) | 7,530,212 | ||||||||||||||||||||||||||
Total expenses | 1,320.40 | 229.4 | 1,079.70 | (576.0 | ) | 2,053.50 | Income (loss) before income taxes, noncontrolling interest and equity in earnings (losses) of subsidiaries | (822,228 | ) | (39,466 | ) | 894,016 | — | 32,322 | ||||||||||||||||||||||||||
Income (loss) before income taxes noncontrolling interest and equity in earnings (losses) of subsidiaries | (245.5 | ) | 3.7 | 413.4 | — | 171.6 | (Provision) benefit for taxes on income (loss) | 314,692 | 10,718 | (358,732 | ) | — | (33,322 | ) | ||||||||||||||||||||||||||
(Provision) benefit for taxes on income | 90.7 | (1.3 | ) | (160.1 | ) | — | (70.7 | ) | Equity in earnings (losses) of subsidiaries (net of tax) | 489,153 | (5,268 | ) | — | (483,885 | ) | — | ||||||||||||||||||||||||
Equity in earnings (losses) of subsidiaries (net of tax) | 255.7 | (33.8 | ) | — | (221.9 | ) | — | Net income (loss) | (18,383 | ) | (34,016 | ) | 535,284 | (483,885 | ) | (1,000 | ) | |||||||||||||||||||||||
Net income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder | $ | 100.9 | $ | (31.4 | ) | $ | 253.3 | $ | (221.9 | ) | $ | 100.9 | Less: Net income attributable to noncontrolling interest | — | — | (17,383 | ) | — | (17,383 | ) | ||||||||||||||||||||
Net income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder | $ | (18,383 | ) | $ | (34,016 | ) | $ | 517,901 | $ | (483,885 | ) | $ | (18,383 | ) | ||||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | ||||||||||||||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2012 | ||||||||||||||||||||||||||||||||||||||||
(In Millions of Dollars) | ||||||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) | |||||||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | For the Year Ended December 31, 2012 | ||||||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | (In Thousands of Dollars) | |||||||||||||||||||||||||||||||||||||
Total revenues | $ | 2,042.90 | $ | 442.9 | $ | 2,834.30 | $ | (1,134.0 | ) | $ | 4,186.10 | |||||||||||||||||||||||||||||
Expenses: | Parent | Guarantor | Non- | Eliminations | The Hertz | |||||||||||||||||||||||||||||||||||
Direct operating | 1,181.20 | 274.4 | 847.5 | — | 2,303.10 | (The Hertz | Subsidiaries | Guarantor | Corporation & | |||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | ||||||||||||||||||||||||||||||||||||||
Depreciation of revenue earning equipment and lease charges | 1,099.30 | 92.4 | 977.2 | (1,134.0 | ) | 1,034.90 | Net income (loss) | $ | 275,779 | $ | 62,195 | $ | 1,001,755 | $ | (1,063,950 | ) | $ | 275,779 | ||||||||||||||||||||||
Selling, general and administrative | 198.6 | 56.9 | 158.8 | — | 414.3 | Other comprehensive income, net of tax | 1,522 | 121 | 6,816 | (6,937 | ) | 1,522 | ||||||||||||||||||||||||||||
Interest expense | 119.6 | 19 | 150.2 | — | 288.8 | Comprehensive income (loss) | $ | 277,301 | $ | 62,316 | $ | 1,008,571 | $ | (1,070,887 | ) | $ | 277,301 | |||||||||||||||||||||||
Interest income | (0.1 | ) | (0.4 | ) | (1.1 | ) | — | (1.6 | ) | |||||||||||||||||||||||||||||||
Other (income) expense, net | — | — | (1.0 | ) | — | (1.0 | ) | CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) | ||||||||||||||||||||||||||||||||
For the Year Ended December 31, 2011 | ||||||||||||||||||||||||||||||||||||||||
Total expenses | 2,598.60 | 442.3 | 2,131.60 | (1,134.0 | ) | 4,038.50 | (In Thousands of Dollars) | |||||||||||||||||||||||||||||||||
Income (loss) before income taxes noncontrolling interest and equity in earnings (losses) of subsidiaries | (555.7 | ) | 0.6 | 702.7 | — | 147.6 | ||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | ||||||||||||||||||||||||||||||||||||
(Provision) benefit for taxes on income | 201.9 | (0.6 | ) | (296.2 | ) | — | (94.9 | ) | (The Hertz | Subsidiaries | Guarantor | Corporation & | ||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | ||||||||||||||||||||||||||||||||||||||
Equity in earnings (losses) of subsidiaries (net of tax) | 406.5 | (22.6 | ) | — | (383.9 | ) | — | Net income (loss) | $ | 210,489 | $ | 34,810 | $ | 758,068 | $ | (773,318 | ) | $ | 230,049 | |||||||||||||||||||||
Net income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder | $ | 52.7 | $ | (22.6 | ) | $ | 406.5 | $ | (383.9 | ) | $ | 52.7 | Other comprehensive income, net of tax | (66,237 | ) | — | (34,619 | ) | 34,619 | (66,237 | ) | |||||||||||||||||||
Comprehensive income (loss) | 144,252 | 34,810 | 723,449 | (738,699 | ) | 163,812 | ||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) | ||||||||||||||||||||||||||||||||||||||||
For the Three Months Ended June 30, 2013 | Less: Comprehensive income attributable to noncontrolling interest | — | — | (19,560 | ) | — | (19,560 | ) | ||||||||||||||||||||||||||||||||
(In Millions of Dollars) | ||||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder | $ | 144,252 | $ | 34,810 | $ | 703,889 | $ | (738,699 | ) | $ | 144,252 | |||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | ||||||||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) | ||||||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | For the Year Ended December 31, 2010 | |||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 129.9 | $ | 99 | $ | 283 | $ | (382.0 | ) | $ | 129.9 | (In Thousands of Dollars) | ||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | (22.2 | ) | (3.2 | ) | (24.4 | ) | 27.6 | (22.2 | ) | |||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | ||||||||||||||||||||||||||||||||||||
Comprehensive income (loss) | $ | 107.7 | $ | 95.8 | $ | 258.6 | $ | (354.4 | ) | $ | 107.7 | (The Hertz | Subsidiaries | Guarantor | Corporation & | |||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | ||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | (18,383 | ) | $ | (34,016 | ) | $ | 535,284 | $ | (483,885 | ) | $ | (1,000 | ) | ||||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) | ||||||||||||||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2013 | Other comprehensive income, net of tax | 41,154 | — | 28,427 | (28,427 | ) | 41,154 | |||||||||||||||||||||||||||||||||
(In Millions of Dollars) | ||||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss) | 22,771 | (34,016 | ) | 563,711 | (512,312 | ) | 40,154 | |||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | Less: Comprehensive income attributable to noncontrolling interest | — | — | (17,383 | ) | — | (17,383 | ) | ||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | |||||||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | Comprehensive income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder | $ | 22,771 | $ | (34,016 | ) | $ | 546,328 | $ | (512,312 | ) | $ | 22,771 | |||||||||||||||||||||||||
Net income (loss) | $ | 156.4 | $ | 184.2 | $ | 538.7 | $ | (722.9 | ) | $ | 156.4 | |||||||||||||||||||||||||||||
Other comprehensive income, net of tax | (46.5 | ) | (0.4 | ) | (51.3 | ) | 51.8 | (46.4 | ) | |||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss) | 109.9 | 183.8 | 487.4 | (671.1 | ) | 110 | For the Year Ended December 31, 2012 | |||||||||||||||||||||||||||||||||
(In Thousands of Dollars) | ||||||||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) | ||||||||||||||||||||||||||||||||||||||||
For the Three Months Ended June 30, 2012 | Parent | Guarantor | Non- | Eliminations | The Hertz | |||||||||||||||||||||||||||||||||||
(In Millions of Dollars) | (The Hertz | Subsidiaries | Guarantor | Corporation & | ||||||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | ||||||||||||||||||||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 1,677,648 | $ | 690,292 | $ | 1,155,789 | $ | (775,317 | ) | $ | 2,748,412 | |||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | ||||||||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | Cash flows from investing activities: | ||||||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | Net change in restricted cash and cash equivalents | 11,981 | 13,596 | (287,182 | ) | — | (261,605 | ) | ||||||||||||||||||||||||||||||
Net income (loss) | $ | 100.9 | $ | (31.4 | ) | $ | 253.3 | $ | (221.9 | ) | $ | 100.9 | ||||||||||||||||||||||||||||
Revenue earning equipment expenditures | (88,120 | ) | (763,610 | ) | (8,761,509 | ) | — | (9,613,239 | ) | |||||||||||||||||||||||||||||||
Other comprehensive income, net of tax | (42.0 | ) | — | (45.6 | ) | 45.6 | (42.0 | ) | ||||||||||||||||||||||||||||||||
Proceeds from disposal of revenue earning equipment | 79,390 | 276,342 | 6,769,364 | — | 7,125,096 | |||||||||||||||||||||||||||||||||||
Comprehensive income (loss) | 58.9 | (31.4 | ) | 207.7 | (176.3 | ) | 58.9 | |||||||||||||||||||||||||||||||||
Property and equipment expenditures | (173,053 | ) | (32,022 | ) | (107,711 | ) | — | (312,786 | ) | |||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) | Proceeds from disposal of property and equipment | 67,370 | 11,839 | 58,485 | — | 137,694 | ||||||||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2012 | ||||||||||||||||||||||||||||||||||||||||
(In Millions of Dollars) | Capital contributions to subsidiaries | (4,267,118 | ) | — | — | 4,267,118 | — | |||||||||||||||||||||||||||||||||
Return of capital from subsidiaries | 1,829,256 | — | — | (1,829,256 | ) | — | ||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | ||||||||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | Loan to Parent From Non-Guarantor | — | — | (385,108 | ) | 385,108 | — | ||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | ||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 52.7 | $ | (22.6 | ) | $ | 406.5 | $ | (383.9 | ) | $ | 52.7 | Acquisitions, net of cash acquired | (1,708,520 | ) | (196,648 | ) | — | — | (1,905,168 | ) | |||||||||||||||||||
Other comprehensive income, net of tax | (9.6 | ) | — | (16.4 | ) | 16.4 | (9.6 | ) | Proceeds from disposal of business | — | — | 84,497 | — | 84,497 | ||||||||||||||||||||||||||
Comprehensive income (loss) | 43.1 | (22.6 | ) | 390.1 | (367.5 | ) | 43.1 | Other investing activities | — | — | (1,779 | ) | — | (1,779 | ) | |||||||||||||||||||||||||
Net cash provided by (used in) investing activities | (4,248,814 | ) | (690,503 | ) | (2,630,943 | ) | 2,822,970 | (4,747,290 | ) | |||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | Cash flows from financing activities: | |||||||||||||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2013 | ||||||||||||||||||||||||||||||||||||||||
(In Millions of Dollars) | Proceeds from issuance of long-term debt | 2,210,000 | — | 27,280 | — | 2,237,280 | ||||||||||||||||||||||||||||||||||
Payment of long-term debt | (650,407 | ) | (18 | ) | (301,719 | ) | — | (952,144 | ) | |||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | Short-term borrowings: | |||||||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | |||||||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | Proceeds | — | — | 438,387 | — | 438,387 | ||||||||||||||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | (365.7 | ) | $ | 425.1 | $ | 1,811.90 | $ | (405.3 | ) | $ | 1,466.00 | ||||||||||||||||||||||||||||
Payments | (26,775 | ) | — | (1,253,368 | ) | — | (1,280,143 | ) | ||||||||||||||||||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||||||||||||||||||
Net change in restricted cash and cash equivalents | (1.0 | ) | 0.2 | 176.2 | — | 175.4 | Proceeds (payments) under the revolving lines of credit, net | 220,000 | (1,262 | ) | 1,054,426 | — | 1,273,164 | |||||||||||||||||||||||||||
Revenue earning equipment expenditures | (87.9 | ) | (347.7 | ) | (6,389.9 | ) | — | (6,825.5 | ) | Capital contributions received from parent | — | — | 4,267,118 | (4,267,118 | ) | — | ||||||||||||||||||||||||
Proceeds from disposal of revenue earning equipment | 47.7 | 16.9 | 3,678.20 | — | 3,742.80 | Loan to Parent From Non-Guarantor | 385,108 | — | — | (385,108 | ) | — | ||||||||||||||||||||||||||||
Property and equipment expenditures | (99.1 | ) | (18.0 | ) | (51.0 | ) | — | (168.1 | ) | Payment of dividends and return of capital | — | — | (2,604,573 | ) | 2,604,573 | — | ||||||||||||||||||||||||
Proceeds from disposal of property and equipment | 24.6 | 5.5 | 12.4 | — | 42.5 | Dividends paid | (25,000 | ) | — | — | — | (25,000 | ) | |||||||||||||||||||||||||||
Capital contributions to subsidiaries | (485.7 | ) | — | — | 485.7 | — | Proceeds from employee stock purchase plan | 4,275 | — | — | — | 4,275 | ||||||||||||||||||||||||||||
Return of capital from subsidiaries | 651 | — | — | (651.0 | ) | — | Loan with Hertz Global Holdings, Inc. | (13,220 | ) | — | — | — | (13,220 | ) | ||||||||||||||||||||||||||
Loan to Parent/Guarantor from Non-Guarantor | — | — | 57 | (57.0 | ) | — | Purchase of noncontrolling interest | (38,000 | ) | — | — | — | (38,000 | ) | ||||||||||||||||||||||||||
Acquisitions, net of cash acquired | — | (2.8 | ) | (226.4 | ) | — | (229.2 | ) | Payment of financing costs | (35,215 | ) | (3,316 | ) | (10,902 | ) | — | (49,433 | ) | ||||||||||||||||||||||
Proceeds from disposal of business | — | — | — | — | — | Net cash provided by (used in) financing activities | 2,030,766 | (4,596 | ) | 1,616,649 | (2,047,653 | ) | 1,595,166 | |||||||||||||||||||||||||||
Other investing activities | — | — | (2.0 | ) | — | (2.0 | ) | Effect of foreign exchange rate changes on cash and cash equivalents | — | — | 5,739 | — | 5,739 | |||||||||||||||||||||||||||
Net cash provided by (used in) investing activities | 49.6 | (345.9 | ) | (2,745.5 | ) | (222.3 | ) | (3,264.1 | ) | Net change in cash and cash equivalents during the period | (540,400 | ) | (4,807 | ) | 147,234 | — | (397,973 | ) | ||||||||||||||||||||||
Cash flows from financing activities: | Cash and cash equivalents at beginning of period | 565,002 | 7,385 | 358,821 | — | 931,208 | ||||||||||||||||||||||||||||||||||
Proceeds from issuance of long-term debt | 250 | — | 954.4 | — | 1,204.40 | Cash and cash equivalents at end of period | $ | 24,602 | $ | 2,578 | $ | 506,055 | $ | — | $ | 533,235 | ||||||||||||||||||||||||
Payment of long-term debt | (22.8 | ) | — | (297.9 | ) | — | (320.7 | ) | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | |||||||||||||||||||||||||||||||
For the Year Ended December 31, 2011 | ||||||||||||||||||||||||||||||||||||||||
Short-term borrowings: | (In Thousands of Dollars) | |||||||||||||||||||||||||||||||||||||||
Proceeds | — | — | 332 | — | 332 | |||||||||||||||||||||||||||||||||||
Payments | — | — | (435.9 | ) | — | (435.9 | ) | Parent | Guarantor | Non- | Eliminations | The Hertz | ||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | |||||||||||||||||||||||||||||||||||||
Proceeds under the revolving lines of credit | 1,360.00 | 1.6 | 2,318.50 | — | 3,680.10 | Corporation) | Subsidiaries | Subsidiaries | ||||||||||||||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 1,000,597 | $ | 773,170 | $ | 1,038,124 | $ | (553,370 | ) | $ | 2,258,521 | |||||||||||||||||||||||||||||
Payments under the revolving lines of credit | (735.0 | ) | (5.0 | ) | (1,477.9 | ) | — | (2,217.9 | ) | |||||||||||||||||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||||||||||||||||||
Capital contributions received from parent | — | — | 485.7 | (485.7 | ) | — | ||||||||||||||||||||||||||||||||||
Net change in restricted cash and cash equivalents | (28,570 | ) | (2,662 | ) | (70,534 | ) | — | (101,766 | ) | |||||||||||||||||||||||||||||||
Loan to Parent/Guarantor from Non-Guarantor | — | (57.0 | ) | — | 57 | — | ||||||||||||||||||||||||||||||||||
Revenue earning equipment expenditures | (142,134 | ) | (670,056 | ) | (8,642,121 | ) | — | (9,454,311 | ) | |||||||||||||||||||||||||||||||
Payment of dividends and return of capital | — | — | (1,056.3 | ) | 1,056.30 | — | ||||||||||||||||||||||||||||||||||
Proceeds from disposal of revenue earning equipment | 163,330 | 170,522 | 7,516,590 | — | 7,850,442 | |||||||||||||||||||||||||||||||||||
Dividends paid to Parent | (479.7 | ) | — | — | — | (479.7 | ) | |||||||||||||||||||||||||||||||||
Property and equipment expenditures | (189,562 | ) | (29,696 | ) | (62,437 | ) | — | (281,695 | ) | |||||||||||||||||||||||||||||||
Proceeds from employee stock purchase plan | 2.4 | — | — | — | 2.4 | |||||||||||||||||||||||||||||||||||
Proceeds from disposal of property and equipment | 23,952 | 9,263 | 20,599 | — | 53,814 | |||||||||||||||||||||||||||||||||||
Loan with Hertz Global Holdings, Inc. | 12 | — | — | — | 12 | |||||||||||||||||||||||||||||||||||
Capital contributions to subsidiaries | (3,549,088 | ) | — | — | 3,549,088 | — | ||||||||||||||||||||||||||||||||||
Payment of financing costs | (7.9 | ) | (0.8 | ) | (11.9 | ) | — | (20.6 | ) | |||||||||||||||||||||||||||||||
Return of capital from subsidiaries | 2,590,025 | — | — | (2,590,025 | ) | — | ||||||||||||||||||||||||||||||||||
Net cash provided by (used in) financing activities | 379 | (61.2 | ) | 810.7 | 627.6 | 1,756.10 | ||||||||||||||||||||||||||||||||||
Loan to Parent from Non-Guarantor | — | — | (490,273 | ) | 490,273 | — | ||||||||||||||||||||||||||||||||||
Effect of foreign exchange rate changes on cash and cash equivalents | — | — | (8.2 | ) | — | (8.2 | ) | |||||||||||||||||||||||||||||||||
Acquisitions, net of cash acquired | (214,384 | ) | (2,100 | ) | (10,597 | ) | — | (227,081 | ) | |||||||||||||||||||||||||||||||
Net change in cash and cash equivalents during the period | 62.9 | 18 | (131.1 | ) | — | (50.2 | ) | |||||||||||||||||||||||||||||||||
Purchase of short-term investments, net | (32,891 | ) | — | — | — | (32,891 | ) | |||||||||||||||||||||||||||||||||
Cash and cash equivalents at beginning of period | 24.6 | 6.5 | 502.1 | — | 533.2 | |||||||||||||||||||||||||||||||||||
Other investing activities | — | (13,602 | ) | 14,188 | — | 586 | ||||||||||||||||||||||||||||||||||
Cash and cash equivalents at end of period | $ | 87.5 | $ | 24.5 | $ | 371 | $ | — | $ | 483 | ||||||||||||||||||||||||||||||
Net cash provided by (used in) investing activities | (1,379,322 | ) | (538,331 | ) | (1,724,585 | ) | 1,449,336 | (2,192,902 | ) | |||||||||||||||||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | Proceeds from issuance of long-term debt | 2,455,309 | — | 607,170 | — | 3,062,479 | ||||||||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2012 | ||||||||||||||||||||||||||||||||||||||||
(In Millions of Dollars) | Payment of long-term debt | (3,596,295 | ) | (17 | ) | (52,988 | ) | — | (3,649,300 | ) | ||||||||||||||||||||||||||||||
Short-term borrowings: | ||||||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | Proceeds | — | — | 460,890 | — | 460,890 | ||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | |||||||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | Payments | (29,224 | ) | — | (1,164,832 | ) | — | (1,194,056 | ) | |||||||||||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | (219.0 | ) | $ | 334.2 | $ | 1,409.30 | $ | (341.5 | ) | $ | 1,183.00 | ||||||||||||||||||||||||||||
Proceeds (payments) under the revolving lines of credit, net | (29,128 | ) | (229,778 | ) | 201,577 | — | (57,329 | ) | ||||||||||||||||||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interest | — | — | (23,100 | ) | — | (23,100 | ) | |||||||||||||||||||||||||||||||||
Net change in restricted cash and cash equivalents | 12.6 | 18.2 | 99.3 | — | 130.1 | |||||||||||||||||||||||||||||||||||
Capital contributions received from parent | — | — | 3,549,088 | (3,549,088 | ) | — | ||||||||||||||||||||||||||||||||||
Revenue earning equipment expenditures | (73.8 | ) | (334.1 | ) | (5,303.1 | ) | — | (5,711.0 | ) | |||||||||||||||||||||||||||||||
Payment of dividends and return of capital | (22,950 | ) | — | (3,143,395 | ) | 3,143,395 | (22,950 | ) | ||||||||||||||||||||||||||||||||
Proceeds from disposal of revenue earning equipment | 54.4 | 162.6 | 3,391.30 | — | 3,608.30 | |||||||||||||||||||||||||||||||||||
Proceeds from employee stock purchase plan | 3,577 | — | — | — | 3,577 | |||||||||||||||||||||||||||||||||||
Property and equipment expenditures | (80.2 | ) | (24.2 | ) | (32.8 | ) | — | (137.2 | ) | |||||||||||||||||||||||||||||||
Loan to Parent from Non-Guarantor | 490,273 | — | — | (490,273 | ) | — | ||||||||||||||||||||||||||||||||||
Proceeds from disposal of property and equipment | 44.3 | 4.2 | 7.9 | — | 56.4 | |||||||||||||||||||||||||||||||||||
Loan from Hertz Global Holdings, Inc. | (984 | ) | — | — | — | (984 | ) | |||||||||||||||||||||||||||||||||
Capital contributions to subsidiaries | (2,215.9 | ) | — | — | 2,215.90 | — | ||||||||||||||||||||||||||||||||||
Payment of financing costs | (81,229 | ) | (2,817 | ) | (7,436 | ) | — | (91,482 | ) | |||||||||||||||||||||||||||||||
Return of capital from subsidiaries | 2,220.60 | — | — | (2,220.6 | ) | — | ||||||||||||||||||||||||||||||||||
Net cash provided by (used in) financing activities | (810,651 | ) | (232,612 | ) | 426,974 | (895,966 | ) | (1,512,255 | ) | |||||||||||||||||||||||||||||||
Acquisitions, net of cash acquired | — | (161.8 | ) | — | — | (161.8 | ) | |||||||||||||||||||||||||||||||||
Effect of foreign exchange rate changes on cash and cash equivalents | — | — | 3,838 | — | 3,838 | |||||||||||||||||||||||||||||||||||
Loan to Parent from Non-Guarantor | — | — | (18.3 | ) | 18.3 | — | ||||||||||||||||||||||||||||||||||
Net decrease in cash and cash equivalents during the period | (1,189,376 | ) | 2,227 | (255,649 | ) | — | (1,442,798 | ) | ||||||||||||||||||||||||||||||||
Other investing activities | — | — | (0.6 | ) | — | (0.6 | ) | |||||||||||||||||||||||||||||||||
Cash and cash equivalents at beginning of period | 1,754,378 | 5,158 | 614,470 | — | 2,374,006 | |||||||||||||||||||||||||||||||||||
Net cash provided by (used in) investing activities | (38.0 | ) | (335.1 | ) | (1,856.3 | ) | 13.6 | (2,215.8 | ) | |||||||||||||||||||||||||||||||
Cash and cash equivalents at end of period | $ | 565,002 | $ | 7,385 | $ | 358,821 | $ | — | $ | 931,208 | ||||||||||||||||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||||||||||||||||||
Proceeds from issuance of long-term debt | 260 | — | 10.5 | — | 270.5 | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||||||||||||||||||||||||||||||
For the Year Ended December 31, 2010 | ||||||||||||||||||||||||||||||||||||||||
Payment of long-term debt | (637.3 | ) | — | (5.8 | ) | — | (643.1 | ) | (In Thousands of Dollars) | |||||||||||||||||||||||||||||||
Short-term borrowings: | ||||||||||||||||||||||||||||||||||||||||
Proceeds | — | — | 246.7 | — | 246.7 | Parent | Guarantor | Non- | Eliminations | The Hertz | ||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | |||||||||||||||||||||||||||||||||||||
Payments | (26.8 | ) | — | (629.4 | ) | — | (656.2 | ) | Corporation) | Subsidiaries | Subsidiaries | |||||||||||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 337,055 | $ | 88,941 | $ | 2,193,486 | $ | (381,555 | ) | $ | 2,237,927 | |||||||||||||||||||||||||||||
Proceeds under the revolving lines of credit | 1,360.00 | 1.9 | 2,173.60 | — | 3,535.50 | |||||||||||||||||||||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||||||||||||||||||
Payments under the revolving lines of credit | (950.0 | ) | (2.9 | ) | (1,038.8 | ) | — | (1,991.7 | ) | Net change in restricted cash and cash equivalents | 19,932 | (17,514 | ) | 158,098 | — | 160,516 | ||||||||||||||||||||||||
Purchase of noncontrolling interest | (38.0 | ) | — | — | — | (38.0 | ) | Revenue earning equipment expenditures | (188,057 | ) | (96,452 | ) | (8,156,363 | ) | — | (8,440,872 | ) | |||||||||||||||||||||||
Capital contributions received from parent | — | — | 2,215.90 | (2,215.9 | ) | — | Proceeds from disposal of revenue earning equipment | 169,451 | 75,139 | 7,273,856 | — | 7,518,446 | ||||||||||||||||||||||||||||
Payment of dividends and return of capital | (12.5 | ) | — | (2,562.1 | ) | 2,562.10 | (12.5 | ) | Property and equipment expenditures | (92,415 | ) | (14,137 | ) | (72,657 | ) | — | (179,209 | ) | ||||||||||||||||||||||
Repayment of Loan to Parent from Non-Guarantor | 18.3 | — | — | (18.3 | ) | — | Proceeds from disposal of property and equipment | 4,311 | 10,416 | 24,178 | — | 38,905 | ||||||||||||||||||||||||||||
Proceeds from employee stock purchase plan | 2 | — | — | — | 2 | Capital contributions to subsidiaries | (1,544,332 | ) | — | — | 1,544,332 | — | ||||||||||||||||||||||||||||
Loan from Hertz Global Holdings, Inc. | (13.9 | ) | — | — | — | (13.9 | ) | Return of capital from subsidiaries | 1,877,095 | — | — | (1,877,095 | ) | — | ||||||||||||||||||||||||||
Payment of financing costs | (4.2 | ) | (1.5 | ) | (1.2 | ) | — | (6.9 | ) | Acquisitions, net of cash acquired | (35 | ) | (43,789 | ) | (3,747 | ) | — | (47,571 | ) | |||||||||||||||||||||
Net cash provided by (used in) financing activities | (42.4 | ) | (2.5 | ) | 409.4 | 327.9 | 692.4 | Purchase of short-term investments, net | 3,183 | 94 | 214 | — | 3,491 | |||||||||||||||||||||||||||
Effect of foreign exchange rate changes on cash and cash equivalents | — | — | (4.8 | ) | — | (4.8 | ) | Other investing activities | — | — | 2,726 | — | 2,726 | |||||||||||||||||||||||||||
Net decrease in cash and cash equivalents during the period | (299.4 | ) | (3.4 | ) | (42.4 | ) | — | (345.2 | ) | Net cash provided by (used in) investing activities | 249,133 | (86,243 | ) | (773,695 | ) | (332,763 | ) | (943,568 | ) | |||||||||||||||||||||
Cash and cash equivalents at beginning of period | 565 | 7.4 | 358.8 | — | 931.2 | Cash flows from financing activities: | ||||||||||||||||||||||||||||||||||
Proceeds from issuance of long-term debt | 1,209,866 | — | 1,425,847 | — | 2,635,713 | |||||||||||||||||||||||||||||||||||
Cash and cash equivalents at end of period | $ | 265.6 | $ | 4 | $ | 316.4 | $ | — | $ | 586 | ||||||||||||||||||||||||||||||
Payment of long-term debt | (73,342 | ) | (68 | ) | (2,880,823 | ) | — | (2,954,233 | ) | |||||||||||||||||||||||||||||||
Short-term borrowings: | ||||||||||||||||||||||||||||||||||||||||
Proceeds | — | — | 490,490 | — | 490,490 | |||||||||||||||||||||||||||||||||||
Payments | (2,615 | ) | — | (968,334 | ) | — | (970,949 | ) | ||||||||||||||||||||||||||||||||
Proceeds (payments) under the revolving lines of credit, net | (18,907 | ) | (3,515 | ) | 1,048,492 | — | 1,026,070 | |||||||||||||||||||||||||||||||||
Distributions to noncontrolling interest | — | — | (18,200 | ) | — | (18,200 | ) | |||||||||||||||||||||||||||||||||
Capital contributions received from parent | — | — | 1,544,332 | (1,544,332 | ) | — | ||||||||||||||||||||||||||||||||||
Payment of dividends and return of capital | (23,000 | ) | — | (2,258,650 | ) | 2,258,650 | (23,000 | ) | ||||||||||||||||||||||||||||||||
Proceeds from employee stock purchase plan | 3,208 | — | — | — | 3,208 | |||||||||||||||||||||||||||||||||||
Loan from Hertz Global Holdings, Inc. | (6,173 | ) | — | — | — | (6,173 | ) | |||||||||||||||||||||||||||||||||
Excess tax benefits from exercise of stock | (258 | ) | — | — | — | (258 | ) | |||||||||||||||||||||||||||||||||
Payment of financing costs | (29,111 | ) | — | (49,040 | ) | — | (78,151 | ) | ||||||||||||||||||||||||||||||||
Net cash provided by (used in) financing activities | 1,059,668 | (3,583 | ) | (1,665,886 | ) | 714,318 | 104,517 | |||||||||||||||||||||||||||||||||
Effect of foreign exchange rate changes on cash and cash equivalents | — | — | (10,337 | ) | — | (10,337 | ) | |||||||||||||||||||||||||||||||||
Net decrease in cash and cash equivalents during the period | 1,645,856 | (885 | ) | (256,432 | ) | — | 1,388,539 | |||||||||||||||||||||||||||||||||
Cash and cash equivalents at beginning of period | 108,522 | 6,043 | 870,902 | — | 985,467 | |||||||||||||||||||||||||||||||||||
Cash and cash equivalents at end of period | $ | 1,754,378 | $ | 5,158 | $ | 614,470 | $ | — | $ | 2,374,006 | ||||||||||||||||||||||||||||||
Subsequent_Events1
Subsequent Events | 6 Months Ended | 12 Months Ended |
Jun. 30, 2013 | Dec. 31, 2012 | |
Subsequent Events | ||
Subsequent Events | Subsequent Events | Subsequent Events |
On July 31, 2013, Hertz entered into a supplement to the Senior ABL Facility to permit aggregate maximum borrowings of $1,865.0 million (subject to borrowing base availability). | On January 23, 2013, Hertz Vehicle Financing LLC, or ‘‘HVF,’’ an insolvency remote, direct, wholly-owned, special purpose subsidiary of Hertz, completed the issuance of $950.0 million in aggregate principal amount of three year and five year Series 2013-1 Rental Car Asset Backed Notes, Class A and Class B. The $282.75 million of three year Class A notes carry a 1.12% coupon, the $42.25 million of three year Class B notes carry a 1.86% coupon, the $543.75 million of five year Class A notes carry a 1.83% coupon, and the $81.25 million of five year Class B notes carry a 2.48% coupon. The three year notes and five year notes have expected final payment dates in August 2016 and August 2018, respectively. The Class B notes are subordinated to the Class A notes. | |
The net proceeds from the sale of the notes will be, to the extent permitted by the applicable agreements, (i) used to pay the purchase price of vehicles acquired by HVF pursuant to HVF's U.S. ABS Program (as defined herein), (ii) used to pay the principal amount of other HVF U.S. ABS Program indebtedness that is then permitted or required to be paid or (iii) released to HVF to be distributed to Hertz or otherwise used by HVF for general purposes. | ||
In February 2013, Hertz caused its Brazilian operating subsidiary to amend the Brazilian Fleet Financing Facility to extend the maturity date from February 2013 to October 2013. |
SCHEDULE_ICONDENSED_FINANCIAL_
SCHEDULE I-CONDENSED FINANCIAL INFORMATION OF REGISTRANT | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2012 | ||||||||||||||||||||||||||||
SCHEDULE I-CONDENSED FINANCIAL INFORMATION OF REGISTRANT | ||||||||||||||||||||||||||||
Schedule I Condensed Financial Information of Registrant | SCHEDULE I | |||||||||||||||||||||||||||
CONDENSED FINANCIAL INFORMATION OF REGISTRANT | ||||||||||||||||||||||||||||
THE HERTZ CORPORATION | ||||||||||||||||||||||||||||
PARENT COMPANY BALANCE SHEETS | ||||||||||||||||||||||||||||
(In Thousands of Dollars) | ||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||
2012 | 2011 | |||||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 24,602 | $ | 565,002 | ||||||||||||||||||||||||
Restricted cash and cash equivalents | 32,681 | 44,663 | ||||||||||||||||||||||||||
Receivables, less allowance for doubtful accounts | 544,454 | 297,292 | ||||||||||||||||||||||||||
Due from Hertz affiliates | 1,047,986 | 655,411 | ||||||||||||||||||||||||||
Inventories, at lower of cost or market | 24,422 | 22,440 | ||||||||||||||||||||||||||
Prepaid expenses and other assets | 2,570,539 | 2,088,579 | ||||||||||||||||||||||||||
Revenue earning equipment, net | 104,207 | 167,304 | ||||||||||||||||||||||||||
Property and equipment, net | 865,694 | 824,381 | ||||||||||||||||||||||||||
Investments in subsidiaries, net | 6,964,916 | 4,413,289 | ||||||||||||||||||||||||||
Other intangible assets, net | 74,606 | 94,682 | ||||||||||||||||||||||||||
Goodwill | 106,210 | 100,221 | ||||||||||||||||||||||||||
Total assets | $ | 12,360,317 | $ | 9,273,264 | ||||||||||||||||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||||||||||||
Due to Hertz affiliates | $ | 2,254,223 | $ | 1,251,347 | ||||||||||||||||||||||||
Accounts payable | 239,247 | 188,695 | ||||||||||||||||||||||||||
Accrued liabilities | 605,680 | 607,673 | ||||||||||||||||||||||||||
Accrued taxes | 54,357 | 54,559 | ||||||||||||||||||||||||||
Debt | 6,190,040 | 4,434,274 | ||||||||||||||||||||||||||
Public liability and property damage | 99,261 | 107,881 | ||||||||||||||||||||||||||
Total Liabilities | 9,442,808 | 6,644,429 | ||||||||||||||||||||||||||
Stockholder's equity: | ||||||||||||||||||||||||||||
Common Stock, $0.01 par value, 3,000 shares authorized, 100 shares issued and outstanding | — | — | ||||||||||||||||||||||||||
Additional paid-in capital | 3,509,998 | 3,473,625 | ||||||||||||||||||||||||||
Accumulated deficit | (565,597 | ) | (816,376 | ) | ||||||||||||||||||||||||
Accumulated other comprehensive loss | (26,892 | ) | (28,414 | ) | ||||||||||||||||||||||||
Total stockholder's equity | 2,917,509 | 2,628,835 | ||||||||||||||||||||||||||
Total liabilities and stockholder's equity | $ | 12,360,317 | $ | 9,273,264 | ||||||||||||||||||||||||
The accompanying notes are an integral part of these financial statements. | ||||||||||||||||||||||||||||
SCHEDULE I (Continued) | ||||||||||||||||||||||||||||
THE HERTZ CORPORATION | ||||||||||||||||||||||||||||
PARENT COMPANY STATEMENTS OF OPERATIONS | ||||||||||||||||||||||||||||
(In Thousands of Dollars) | ||||||||||||||||||||||||||||
Years ended December 31, | ||||||||||||||||||||||||||||
2012 | 2011 | 2010 | ||||||||||||||||||||||||||
Revenues | $ | 4,259,049 | $ | 4,068,310 | $ | 3,961,435 | ||||||||||||||||||||||
Expenses: | ||||||||||||||||||||||||||||
Direct operating | 2,384,829 | 2,262,371 | 2,217,864 | |||||||||||||||||||||||||
Depreciation of revenue earning equipment and lease charges | 2,402,032 | 1,996,733 | 1,938,416 | |||||||||||||||||||||||||
Selling, general and administrative | 448,100 | 326,794 | 320,192 | |||||||||||||||||||||||||
Interest expense, net of interest income | 253,437 | 299,099 | 297,276 | |||||||||||||||||||||||||
Other (income) expense, net | (10,656 | ) | 62,396 | 9,915 | ||||||||||||||||||||||||
Total expenses | 5,477,742 | 4,947,393 | 4,783,663 | |||||||||||||||||||||||||
Loss before income taxes | (1,218,693 | ) | (879,083 | ) | (822,228 | ) | ||||||||||||||||||||||
Benefit for taxes on income | 476,444 | 342,469 | 314,692 | |||||||||||||||||||||||||
Equity in earnings of subsidiaries, net of tax | 1,018,028 | 747,103 | 489,153 | |||||||||||||||||||||||||
Net income (loss) | $ | 275,779 | $ | 210,489 | $ | (18,383 | ) | |||||||||||||||||||||
The accompanying notes are an integral part of these financial statements. | ||||||||||||||||||||||||||||
SCHEDULE I (Continued) | ||||||||||||||||||||||||||||
THE HERTZ CORPORATION | ||||||||||||||||||||||||||||
PARENT COMPANY STATEMENTS OF COMPREHENSIVE INCOME | ||||||||||||||||||||||||||||
(In Thousands of Dollars) | ||||||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||||||
2012 | 2011 | 2010 | ||||||||||||||||||||||||||
Net income (loss) | $ | 275,779 | $ | 210,489 | $ | (18,383 | ) | |||||||||||||||||||||
Other comprehensive income (loss) | 1,522 | (66,237 | ) | 41,154 | ||||||||||||||||||||||||
Comprehensive income | $ | 277,301 | $ | 144,252 | $ | 22,771 | ||||||||||||||||||||||
The accompanying notes are an integral part of these financial statements. | ||||||||||||||||||||||||||||
SCHEDULE I (Continued) | ||||||||||||||||||||||||||||
THE HERTZ CORPORATION | ||||||||||||||||||||||||||||
PARENT COMPANY STATEMENTS OF STOCKHOLDERS' EQUITY | ||||||||||||||||||||||||||||
(In Thousands of Dollars, except share data) | ||||||||||||||||||||||||||||
Common Stock | Additional | Accumulated | Accumulated | Total | ||||||||||||||||||||||||
Paid-In Capital | Deficit | Other | Equity | |||||||||||||||||||||||||
Comprehensive | ||||||||||||||||||||||||||||
Balance at: | Shares | Amount | Loss | |||||||||||||||||||||||||
31-Dec-09 | 100 | $ | — | $ | 3,410,518 | $ | (962,532 | ) | $ | (3,331 | ) | $ | 2,444,655 | |||||||||||||||
Net loss attributable to The Hertz Corporation and Subsidiaries' common stockholder | (18,383 | ) | (18,383 | ) | ||||||||||||||||||||||||
Dividends paid to Hertz Global Holdings, Inc. | (23,000 | ) | (23,000 | ) | ||||||||||||||||||||||||
Other comprehensive income | 41,154 | 41,154 | ||||||||||||||||||||||||||
Stock-based employee compensation charges, net of tax | 36,560 | 36,560 | ||||||||||||||||||||||||||
Excess tax benefits from exercise of stock options | (258 | ) | (258 | ) | ||||||||||||||||||||||||
Proceeds from employee stock purchase plan | 3,774 | 3,774 | ||||||||||||||||||||||||||
Hertz Holdings common and phantom shares issued to Directors | 1,425 | 1,425 | ||||||||||||||||||||||||||
31-Dec-10 | 100 | — | 3,452,019 | (1,003,915 | ) | 37,823 | 2,485,927 | |||||||||||||||||||||
Net income attributable to The Hertz Corporation and Subsidiaries' common stockholder | 210,489 | 210,489 | ||||||||||||||||||||||||||
Dividends paid to Hertz Global Holdings, Inc. | (22,950 | ) | (22,950 | ) | ||||||||||||||||||||||||
Other comprehensive loss | (66,237 | ) | (66,237 | ) | ||||||||||||||||||||||||
Acquisition of remaining portion of non-controlling interest, net of tax of $9,798 | (15,287 | ) | (15,287 | ) | ||||||||||||||||||||||||
Stock-based employee compensation charges, net of tax of $0 | 31,093 | 31,093 | ||||||||||||||||||||||||||
Proceeds from employee stock purchase plan | 4,208 | 4,208 | ||||||||||||||||||||||||||
Hertz Holdings common and phantom shares issued to Directors | 1,592 | 1,592 | ||||||||||||||||||||||||||
31-Dec-11 | 100 | — | 3,473,625 | (816,376 | ) | (28,414 | ) | 2,628,835 | ||||||||||||||||||||
Net income attributable to The Hertz Corporation and Subsidiaries' common stockholder | 275,779 | 275,779 | ||||||||||||||||||||||||||
Dividends paid to Hertz Global Holdings, Inc. | (25,000 | ) | (25,000 | ) | ||||||||||||||||||||||||
Other comprehensive income | 1,522 | 1,522 | ||||||||||||||||||||||||||
Stock-based employee compensation charges, net of tax of tax of $399 | 29,855 | 29,855 | ||||||||||||||||||||||||||
Proceeds from employee stock purchase plan | 5,030 | 5,030 | ||||||||||||||||||||||||||
Hertz Holdings common and phantom shares issued to Directors | 1,488 | 1,488 | ||||||||||||||||||||||||||
31-Dec-12 | 100 | $ | — | $ | 3,509,998 | $ | (565,597 | ) | $ | (26,892 | ) | $ | 2,917,509 | |||||||||||||||
The accompanying notes are an integral part of these financial statements. | ||||||||||||||||||||||||||||
SCHEDULE I (Continued) | ||||||||||||||||||||||||||||
THE HERTZ CORPORATION | ||||||||||||||||||||||||||||
PARENT COMPANY STATEMENTS OF CASH FLOWS | ||||||||||||||||||||||||||||
(In Thousands of Dollars) | ||||||||||||||||||||||||||||
Years ended December 31, | ||||||||||||||||||||||||||||
2012 | 2011 | 2010 | ||||||||||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||||||||||
Net income (loss) | $ | 275,779 | $ | 210,489 | $ | (18,383 | ) | |||||||||||||||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities | 1,401,869 | 790,108 | 355,438 | |||||||||||||||||||||||||
Net cash provided by operating activities | 1,677,648 | 1,000,597 | 337,055 | |||||||||||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||||||
Net change in restricted cash and cash equivalents | 11,981 | (28,570 | ) | ) | 19,932 | |||||||||||||||||||||||
Revenue earning equipment expenditures | (88,120 | ) | (142,134 | ) | ) | (188,057 | ) | |||||||||||||||||||||
Proceeds from disposal of revenue earning equipment | 79,390 | 163,330 | 169,451 | |||||||||||||||||||||||||
Property and equipment expenditures | (173,053 | ) | (189,562 | ) | ) | (92,415 | ) | |||||||||||||||||||||
Proceeds from disposal of property and equipment | 67,370 | 23,952 | 4,311 | |||||||||||||||||||||||||
Capital contributions to subsidiaries | (4,267,118 | ) | (3,549,088 | ) | ) | (1,544,332 | ) | |||||||||||||||||||||
Return of capital from subsidiaries | 1,829,256 | 2,590,025 | 1,877,095 | |||||||||||||||||||||||||
Acquisitions, net of cash acquired | (1,708,520 | ) | (214,384 | ) | ) | (35 | ) | |||||||||||||||||||||
Purchase of short-term investments, net | — | (32,891 | ) | ) | 3,183 | |||||||||||||||||||||||
Net cash provided by (used in) investing activities | (4,248,814 | ) | (1,379,322 | ) | ) | 249,133 | ||||||||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||||||
Proceeds from issuance of long‑term debt | 2,210,000 | 2,455,309 | 1,209,866 | |||||||||||||||||||||||||
Payment of long‑term debt | (650,407 | ) | (3,596,295 | ) | ) | (73,342 | ) | |||||||||||||||||||||
Short‑term borrowings: | ||||||||||||||||||||||||||||
Payments | (26,775 | ) | (29,224 | ) | ) | (2,615 | ) | |||||||||||||||||||||
Proceeds (payments) under the revolving lines of credit, net | 220,000 | (29,128 | ) | ) | (18,907 | ) | ||||||||||||||||||||||
Payment of dividends and return of capital | (25,000 | ) | (22,950 | ) | ) | (23,000 | ) | |||||||||||||||||||||
Proceeds from employee stock purchase plan | 4,275 | 3,577 | 3,208 | |||||||||||||||||||||||||
Loan to parent from Non-Guarantor | 385,108 | 490,273 | — | |||||||||||||||||||||||||
Loan with Hertz affiliate | (13,220 | ) | (984 | ) | ) | (6,173 | ) | |||||||||||||||||||||
Excess tax benefits from exercise of Stock options | — | — | (258 | ) | ||||||||||||||||||||||||
Purchase of noncontrolling interest | (38,000 | ) | — | — | ||||||||||||||||||||||||
Payment of financing costs | (35,215 | ) | (81,229 | ) | ) | (29,111 | ) | |||||||||||||||||||||
Net cash provided by (used in) financing activities | 2,030,766 | (810,651 | ) | ) | 1,059,668 | |||||||||||||||||||||||
Net change in cash and cash equivalents during the period | (540,400 | ) | (1,189,376 | ) | ) | 1,645,856 | ||||||||||||||||||||||
Cash and cash equivalents at beginning of period | 565,002 | 1,754,378 | 108,522 | |||||||||||||||||||||||||
Cash and cash equivalents at end of period | $ | 24,602 | $ | 565,002 | $ | 1,754,378 | ||||||||||||||||||||||
The accompanying notes are an integral part of these financial statements. | ||||||||||||||||||||||||||||
Background and Basis of Presentation | ||||||||||||||||||||||||||||
The accompanying condensed financial statements include only the accounts of The Hertz Corporation, or the “Company.” Investments in the Company's subsidiaries are accounted for under the equity method. These parent company financial statements have been prepared in accordance with Rule 12‑04 of Regulation S-X, as restricted net assets of the Company's subsidiaries exceed 25% of the Company's consolidated net assets as of December 31, 2012. | ||||||||||||||||||||||||||||
Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted since this information is included in the Company's annual consolidated financial statements included in this Annual Report under the caption “Item 8—Financial Statements and Supplementary Data.” | ||||||||||||||||||||||||||||
Commitments and Contingencies | ||||||||||||||||||||||||||||
The following table details the contractual cash obligations of the Company for debt, related interest payable and tax liability for uncertain tax positions and related interest as of December 31, 2012 (in millions of dollars): | ||||||||||||||||||||||||||||
Total | 2013 | 2014 | 2015 | 2016 | 2017 | Thereafter | ||||||||||||||||||||||
Debt | $ | 6,186.70 | $ | 383.7 | $ | 42.7 | $ | 21.6 | $ | 21.6 | $ | 21.5 | $ | 5,695.60 | ||||||||||||||
Interest | 2,241.10 | 341.4 | 338 | 334.9 | 326.5 | 324.4 | 575.9 | |||||||||||||||||||||
Uncertain tax positions liability and interest | 1.2 | 1.2 | — | — | — | — | — | |||||||||||||||||||||
Total | $ | 8,429.00 | $ | 726.3 | $ | 380.7 | $ | 356.5 | $ | 348.1 | $ | 345.9 | $ | 6,271.50 | ||||||||||||||
The following table details the contractual cash obligations of the Company for operating leases and purchase obligations as of December 31, 2012 (in millions of dollars): | ||||||||||||||||||||||||||||
Total | Less than | 3-Jan | 5-Mar | More than | ||||||||||||||||||||||||
1 Year | Years | Years | 5 Years | |||||||||||||||||||||||||
Operating leases and concession agreements | $ | 1,309.10 | $ | 295.3 | $ | 367.6 | $ | 180.6 | $ | 465.6 | ||||||||||||||||||
Purchase obligations | 4,129.10 | 4,072.30 | 52.9 | 3.9 | — | |||||||||||||||||||||||
Total | $ | 5,438.20 | $ | 4,367.60 | $ | 420.5 | $ | 184.5 | $ | 465.6 | ||||||||||||||||||
Distribution of Equity | ||||||||||||||||||||||||||||
The following table details distributions of equity received by the Company from its subsidiaries during 2012, 2011 and 2010 (in millions of dollars): | ||||||||||||||||||||||||||||
2012 | 2011 | 2010 | ||||||||||||||||||||||||||
Distribution of Equity | $ | 2,604.60 | $ | 3,143.40 | $ | 2,256.70 | ||||||||||||||||||||||
SCHEDULE_IIVALUATION_AND_QUALI
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2012 | ||||||||||||||||||||
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS | ||||||||||||||||||||
Schedule of Valuation and Qualifying Accounts Disclosure | SCHEDULE II | |||||||||||||||||||
VALUATION AND QUALIFYING ACCOUNTS | ||||||||||||||||||||
THE HERTZ CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||
(In Thousands of Dollars) | ||||||||||||||||||||
Balance at | Additions | |||||||||||||||||||
Beginning of | Charged to | Translation | Deductions | Balance at | ||||||||||||||||
Period | Expense | Adjustments | End of Period | |||||||||||||||||
Allowance for doubtful accounts: | ||||||||||||||||||||
Year ended December 31, 2012 | $ | 20,282 | $ | 34,144 | $ | 28 | $ | (29,341 | ) | (a) | $ | 25,113 | ||||||||
Year ended December 31, 2011 | 19,708 | 28,164 | 68 | (27,658 | ) | (a) | 20,282 | |||||||||||||
Year ended December 31, 2010 | 21,268 | 19,667 | (695 | ) | (20,532 | ) | (a) | 19,708 | ||||||||||||
Tax valuation allowances: | ||||||||||||||||||||
Year ended December 31, 2012 | $ | 186,710 | $ | 35,805 | $ | 3,930 | $ | — | $ | 226,445 | ||||||||||
Year ended December 31, 2011 | 185,807 | (2,528 | ) | 3,431 | — | 186,710 | ||||||||||||||
Year ended December 31, 2010 | 167,812 | 27,473 | (9,478 | ) | — | 185,807 | ||||||||||||||
_____________________________ | ||||||||||||||||||||
(a) | Amounts written off, net of recoveries. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |
Dec. 31, 2012 | ||
Summary of Significant Accounting Policies | ||
Principles of Consolidation | Principles of Consolidation | |
The consolidated financial statements include the accounts of Hertz Holdings and our wholly owned and majority owned domestic and international subsidiaries. In the event that Hertz Holdings is a primary beneficiary of a variable interest entity, the assets, liabilities, and results of operations of the variable interest entity will be included in our consolidated financial statements. All significant intercompany transactions have been eliminated in consolidation. | ||
Use of Estimates and Assumptions | Use of Estimates and Assumptions | |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America, or “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, reserves for litigation and other contingencies, accounting for income taxes and related uncertain tax positions, pension and postretirement benefit costs, the fair value of assets and liabilities acquired in business combinations, the recoverability of long-lived assets, useful lives and impairment of long-lived tangible and intangible assets including goodwill, valuation of stock based compensation, public liability and property damage reserves, reserves for restructuring, allowance for doubtful accounts, and fair value of derivatives, among others. | ||
Reclassifications | Reclassifications | |
Certain prior period amounts have been reclassified to conform with current year presentation. | ||
Acquisition Accounting | Acquisition Accounting | |
We account for business combinations using the acquisition method, which requires an allocation of the purchase price of an acquired entity to the assets acquired and liabilities assumed based on their estimated fair values at the date of acquisition. Goodwill represents the excess of the purchase price over the net tangible and intangible assets acquired. | ||
Revenue Recognition | Revenue Recognition | |
Rental and rental related revenue (including cost reimbursements from customers where we consider ourselves to be the principal versus an agent) are recognized over the period the revenue earning equipment is rented or leased based on the terms of the rental or leasing contract. Maintenance management administrative fees are recognized monthly and maintenance management service revenue is recognized when services are performed. Revenue related to new equipment sales and consumables is recognized at the time of delivery to, or pick-up by, the customer and when collectability is reasonably assured. Fees from our licensees are recognized over the period the underlying licensees' revenue is earned (over the period the licensees' revenue earning equipment is rented). Certain truck and equipment leases are originated with the intention of syndicating to banks, and upon the sale of rights to these direct financing leases, the net gain is recorded in revenue. | ||
Sales tax amounts collected from customers have been recorded on a net basis. | ||
Cash and Cash Equivalents and Other | Cash and Cash Equivalents and Other | |
We consider all highly liquid debt instruments purchased with an original maturity of three months or less to be cash equivalents. | ||
In our consolidated statements of cash flows, we net cash flows from revolving borrowings in the line item “Proceeds (payments) under the revolving lines of credit, net.” The contractual maturities of such borrowings may exceed 90 days in certain cases. | ||
Restricted Cash and Cash Equivalents | Concentration of Credit Risk | |
Our cash and cash equivalents are invested in various investment grade institutional money market accounts and 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. We seek to mitigate such risks by spreading the risk across multiple counterparties and monitoring the risk profiles of these counterparties. In addition, we have credit risk from derivative financial instruments used in hedging activities. We limit our exposure relating to derivative financial instruments by diversifying the financial instruments among various counterparties, which consist of major financial institutions. | ||
Restricted Cash and Cash Equivalents | ||
Restricted cash and cash equivalents includes cash and cash equivalents that are not readily available for our normal disbursements. Restricted cash and cash equivalents are restricted for the purchase of revenue earning vehicles and other specified uses under our Fleet Debt facilities, for our Like-Kind Exchange Program, or “LKE Program,” and to satisfy certain of our self-insurance regulatory reserve requirements. These funds are primarily held in highly rated money market funds with investments primarily in government and corporate obligations. Restricted cash and cash equivalents are excluded from cash and cash equivalents. | ||
Receivables | Receivables | |
Receivables are stated net of allowances for doubtful accounts and represent credit extended to manufacturers and customers that satisfy defined credit criteria. The estimate of the allowance for doubtful accounts is based on our historical experience and our judgment as to the likelihood of ultimate payment. Actual receivables are written-off against the allowance for doubtful accounts when we determine the balance will not be collected. Bad debt expense is reflected as a component of "Selling, general and administrative" in our consolidated statements of operations. | ||
Property and Equipment | Generally, when revenue earning equipment is acquired, we estimate the period that we will hold the asset, primarily based on historical measures of the amount of rental activity (e.g., automobile mileage and equipment usage) and the targeted age of equipment at the time of disposal. We also estimate the residual value of the applicable revenue earning equipment at the expected time of disposal. The residual values for rental vehicles are affected by many factors, including make, model and options, age, physical condition, mileage, sale location, time of the year and channel of disposition (e.g., auction, retail, dealer direct). The residual value for rental equipment is affected by factors which include equipment age and amount of usage. Depreciation is recorded on a straight-line basis 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 vehicle and equipment sales can also be affected by external factors such as the economy, natural disasters, fuel prices and incentives offered by manufacturers of new cars. These key factors are considered when estimating future residual values and assessing depreciation rates. As a result of this ongoing assessment, we make periodic adjustments to depreciation rates of revenue earning equipment in response to changed market conditions. Upon disposal of revenue earning equipment, depreciation expense is adjusted for the difference between the net proceeds received and the remaining net book value. | |
Within Donlen, revenue earning equipment is under longer term lease agreements with our customers. These leases contain provisions whereby we have a contracted residual value guaranteed to us by the lessee, such that we do not experience any gains or losses on the disposal of these vehicles. Therefore depreciation rates on these vehicles are not adjusted at any point in time per the associated lease contract. | ||
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 | 3 to 50 years | |
Furniture and fixtures | 1 to 15 years | |
Capitalized internal use software | 1 to 15 years | |
Service cars and service equipment | 1 to 13 years | |
Other intangible assets | 3 to 20 years | |
Leasehold improvements | The shorter of their economic lives or the lease term | |
Schedule of estimated useful lives of revenue-earning assets | Revenue Earning Equipment | |
Revenue earning equipment is stated at cost, net of related discounts. Useful lives are as follows: | ||
Cars | 4 to 28 months | |
Other equipment | 24 to 108 months | |
Environmental Liabilities | Environmental Liabilities | |
The use of automobiles and other vehicles is subject to various governmental controls designed to limit environmental damage, including that caused by emissions and noise. Generally, these controls are met by the manufacturer, except in the case of occasional equipment failure requiring repair by us. To comply with environmental regulations, measures are taken at certain locations to reduce the loss of vapor during the fueling process and to maintain, upgrade and replace underground fuel storage tanks. We also incur and provide for expenses for the cleanup of petroleum discharges and other alleged violations of environmental laws arising from the disposition of waste products. We do not believe that we will be required to make any material capital expenditures for environmental control facilities or to make any other material expenditures to meet the requirements of governmental authorities in this area. Liabilities for these expenditures are recorded at undiscounted amounts when it is probable that obligations have been incurred and the amounts can be reasonably estimated. | ||
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 vehicles and 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 our estimates change or if actual results differ from these assumptions, the amount of the recorded liability is adjusted to reflect these results. | ||
Pensions and Postretirement Benefit Obligations | Pension Benefit Obligations | |
Our 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. Actual results that differ from our assumptions are accumulated and amortized over future periods and, therefore, generally affect our recognized expense in such future periods. While we believe that the assumptions used are appropriate, significant differences in actual experience or significant changes in assumptions would affect our pension costs and obligations. | ||
Foreign Currency Translation and Transactions | Foreign Currency Translation and Transactions | |
Assets and liabilities of international subsidiaries are translated at the rate of exchange in effect on the balance sheet date; income and expenses are translated at the average rate of exchange prevailing during the year. The related translation adjustments are reflected in “Accumulated other comprehensive loss” in the equity section of our consolidated balance sheets. As of December 31, 2012 and 2011, the accumulated foreign currency translation gain was $102.7 million and $91.3 million, respectively. Foreign currency gains and losses resulting from transactions are included in earnings. | ||
Derivative Instruments | Derivative Instruments | |
We are exposed to a variety of market risks, including the effects of changes in interest rates, gasoline and diesel fuel prices and foreign currency exchange rates. We manage our exposure to these market risks through our regular operating and financing activities and, when deemed appropriate, through the use of derivative financial instruments. Derivative financial instruments are viewed as risk management tools and have not been used for speculative or trading purposes. In addition, derivative financial instruments are entered into with a diversified group of major financial institutions in order to manage our exposure to counterparty nonperformance on such instruments. We account for all derivatives in accordance with GAAP, which requires that all derivatives be recorded on the balance sheet as either assets or liabilities measured at their fair value. The effective portion of changes in fair value of derivatives designated as cash flow hedging instruments is recorded as a component of other comprehensive income. The ineffective portion is recognized currently in earnings within the same line item as the hedged item, based upon the nature of the hedged item. For derivative instruments that are not part of a qualified hedging relationship, the changes in their fair value are recognized currently in earnings. See Note 14—Financial Instruments. | ||
Income Taxes | Income Taxes | |
Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates is recognized in the statement of operations in the period that includes the enactment date. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not 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 change to reflect tax on these amounts. See Note 9—Taxes on Income. | ||
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” in our consolidated statements of operations and for the years ended December 31, 2012, 2011 and 2010 were $158.0 million, $145.8 million and $133.8 million, respectively. | ||
Goodwill and Intangible and Long-lived Asssets | Goodwill | |
Goodwill is not amortized but is subject to periodic testing for impairment in accordance with Financial Accounting Standards Board, or "FASB," Accounting Standards Codification, or "ASC," Topic 350, “Intangibles—Goodwill and Other,” or “ASC 350,” at the reporting unit level which is one level below our operating segments. The assessment of goodwill impairment is conducted by estimating and comparing the fair value of our reporting units, as defined in ASC 350, to their carrying value as of that date. The fair value is estimated using an income approach whereby the fair value of the reporting unit is based on the future cash flows that each reporting unit's assets can be expected to generate. Future cash flows are based on forward-looking information regarding market share and costs for each reporting unit and are discounted using an appropriate discount rate. Future discounted cash flows can be affected by changes in industry or market conditions or the rate and extent to which anticipated synergies or cost savings are realized with newly acquired entities. The test for impairment is conducted annually each October 1st, and more frequently if events occur or circumstances change that indicate that the fair value of a reporting unit may be below its carrying amount. | ||
Intangible and Long-lived Assets | ||
Intangible assets include concession agreements, technology, customer relationships, trademarks and 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 two to fifteen 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 in accordance with FASB ASC Topic 360, “Property, Plant, and Equipment,” or “ASC 360.” 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. Intangible assets determined to have indefinite useful lives are not amortized but are tested for impairment annually each October 1st and more frequently if events occur or circumstances change that indicate an asset may be impaired. | ||
Stock-Based Compensation | Stock‑Based Compensation | |
We measure 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 to be recognized over the period during which the employee is required to provide service in exchange for the award. We have 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 life, dividend yield and risk-free interest rate. See Note 7-Stock‑Based Compensation. | ||
We are using equity accounting for restricted stock unit and performance stock unit 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 a performance condition. For performance stock units, we re-assess the probability of achieving the applicable performance condition each reporting period and adjust the recognition of expense accordingly. The performance condition is not considered in determining the grant date fair value. | ||
Franchise Revenues and Transactions | Franchise Revenues and Transactions | |
“Franchise revenues” includes franchise fees for use of our brands and services. Generally franchise fees from franchised locations are based on a percentage of net sales of the franchised business and are recognized as earned and when collectability is reasonably assured. | ||
Initial franchise fees are recorded as deferred income when received and are recognized as revenue when all material services and conditions related to the franchise fee have been substantially performed. | ||
Renewal franchise fees are recognized as revenue when the license agreements are effective and collectability is reasonably assured. | ||
Other (income) expense, net includes the gains or losses from the sales of our operations or assets to new and existing franchisees. Such gains or losses are included in operating income because they are expected to be a recurring part of our business. | ||
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements | |
In December 2011, the FASB issued Accounting Standards Update, or "ASU," No. 2011-11, "Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities," or "ASU 2011-11" to amend the requirement for an entity to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. An entity should provide the disclosures required by those amendments retrospectively for all comparative periods presented. ASU 2011-11 is effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. We plan to adopt ASU 2011-11 on January 1, 2013, as required, but do not believe this guidance will have a significant impact on our consolidated financial statements or financial statement disclosures. | ||
In July 2012, the FASB issued ASU No. 2012-02, "Intangibles—Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment," or "ASU 2012-02" which states that an entity has the option first to assess qualitative factors to determine whether the existence of events and circumstances indicates that it is more likely than not that an indefinite-lived intangible asset is impaired. If, after assessing the totality of events and circumstances, an entity concludes that it is not more likely than not that the indefinite-lived intangible asset is impaired, then the entity is not required to take further action. However, if an entity concludes otherwise, then it is required to determine the fair value of the indefinite-lived intangible asset and perform the quantitative impairment test by comparing the fair value with the carrying amount. This provision is effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. This accounting guidance is not expected to have a material impact on our consolidated financial statements or financial statement disclosures. | ||
In February 2013, the FASB issued ASU No. 2013-02, "Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income," or "ASU 2013-02" which requires disclosure of significant amounts reclassified out of accumulated other comprehensive income by component and their corresponding effect on the respective line items of net income. This guidance is effective for reporting periods beginning after December 15, 2012 and is not expected to have a material impact on our consolidated financial statements or financial statement disclosures. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | |
Dec. 31, 2012 | ||
Summary of Significant Accounting Policies | ||
Schedule of estimated useful lives of assets based on which provisions for depreciation and amortization are computed on a straight-line basis | Useful lives are as follows: | |
Buildings | 3 to 50 years | |
Furniture and fixtures | 1 to 15 years | |
Capitalized internal use software | 1 to 15 years | |
Service cars and service equipment | 1 to 13 years | |
Other intangible assets | 3 to 20 years | |
Leasehold improvements | The shorter of their economic lives or the lease term | |
Schedule of estimated useful lives of revenue-earning assets | Revenue Earning Equipment | |
Revenue earning equipment is stated at cost, net of related discounts. Useful lives are as follows: | ||
Cars | 4 to 28 months | |
Other equipment | 24 to 108 months |
Goodwill_and_Other_Intangible_5
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended | 12 Months Ended | ||||||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | |||||||||||||||||||||||
Goodwill and Other Intangible Assets | ||||||||||||||||||||||||
Summary of changes in goodwill, by segment | The following summarizes the changes in our goodwill, by segment (in millions of dollars): | The following summarizes the changes in our goodwill, by segment (in millions of dollars): | ||||||||||||||||||||||
Car Rental | Equipment | Total | Car Rental | Equipment | Total | |||||||||||||||||||
Rental | Rental | |||||||||||||||||||||||
Balance as of January 1, 2013 | Balance as of January 1, 2012 | |||||||||||||||||||||||
Goodwill | $ | 1,287.50 | $ | 775.4 | $ | 2,062.90 | Goodwill | $ | 419.3 | $ | 693.8 | $ | 1,113.10 | |||||||||||
Accumulated impairment losses | (46.1 | ) | (674.9 | ) | (721.0 | ) | Accumulated impairment losses | (46.1 | ) | (674.9 | ) | (721.0 | ) | |||||||||||
1,241.40 | 100.5 | 1,341.90 | 373.2 | 18.9 | 392.1 | |||||||||||||||||||
Goodwill acquired during the period | 9.4 | — | 9.4 | Goodwill acquired during the year | 884.9 | 82 | 966.9 | |||||||||||||||||
Adjustments to previously recorded purchase price allocation(a) | 15 | 1.7 | 16.7 | Adjustments to previously recorded purchase price allocation(a) | (15.3 | ) | — | (15.3 | ) | |||||||||||||||
Other changes during the period(b) | (1.6 | ) | (0.1 | ) | (1.7 | ) | Other changes during the year(b) | (1.4 | ) | (0.4 | ) | (1.8 | ) | |||||||||||
22.8 | 1.6 | 24.4 | 868.2 | 81.6 | 949.8 | |||||||||||||||||||
Balance as of June 30, 2013 | Balance as of December 31, 2012 | |||||||||||||||||||||||
Goodwill | 1,310.30 | 777 | 2,087.30 | Goodwill | 1,287.50 | 775.4 | 2,062.90 | |||||||||||||||||
Accumulated impairment losses | (46.1 | ) | (674.9 | ) | (721.0 | ) | Accumulated impairment losses | (46.1 | ) | (674.9 | ) | (721.0 | ) | |||||||||||
$ | 1,264.20 | $ | 102.1 | $ | 1,366.30 | $ | 1,241.40 | $ | 100.5 | $ | 1,341.90 | |||||||||||||
Car Rental | Equipment | Total | Car Rental | Equipment | Total | |||||||||||||||||||
Rental | Rental | |||||||||||||||||||||||
Balance as of January 1, 2012 | Balance as of January 1, 2011 | |||||||||||||||||||||||
Goodwill | $ | 419.3 | $ | 693.8 | $ | 1,113.10 | Goodwill | $ | 367.9 | $ | 681.7 | $ | 1,049.60 | |||||||||||
Accumulated impairment losses | (46.1 | ) | (674.9 | ) | (721.0 | ) | Accumulated impairment losses | (46.1 | ) | (674.9 | ) | (721.0 | ) | |||||||||||
373.2 | 18.9 | 392.1 | 321.8 | 6.8 | 328.6 | |||||||||||||||||||
Goodwill acquired during the year | 884.9 | 82 | 966.9 | Goodwill acquired during the year | 53.1 | 12.3 | 65.4 | |||||||||||||||||
Adjustments to previously recorded purchase price allocation(c) | (15.3 | ) | — | (15.3 | ) | Adjustments to previously recorded purchase price allocation | (0.9 | ) | (0.1 | ) | (1.0 | ) | ||||||||||||
Other changes during the year(b) | (0.8 | ) | (0.1 | ) | (0.9 | ) | ||||||||||||||||||
Other changes during the year(d) | (1.4 | ) | (0.4 | ) | (1.8 | ) | 51.4 | 12.1 | 63.5 | |||||||||||||||
868.2 | 81.6 | 949.8 | ||||||||||||||||||||||
Balance as of December 31, 2011 | ||||||||||||||||||||||||
Balance as of December 31, 2012 | Goodwill | 419.3 | 693.8 | 1,113.10 | ||||||||||||||||||||
Goodwill | 1,287.50 | 775.4 | 2,062.90 | |||||||||||||||||||||
Accumulated impairment losses | (46.1 | ) | (674.9 | ) | (721.0 | ) | ||||||||||||||||||
Accumulated impairment losses | (46.1 | ) | (674.9 | ) | (721.0 | ) | $ | 373.2 | $ | 18.9 | $ | 392.1 | ||||||||||||
$ | 1,241.40 | $ | 100.5 | $ | 1,341.90 | |||||||||||||||||||
_______________________________________________________________________________ | ||||||||||||||||||||||||
_______________________________________________________________________________ | ||||||||||||||||||||||||
(a) | Consists of deferred tax adjustments recorded during 2012. | |||||||||||||||||||||||
(a) | Consists of adjustments related to purchase accounting and deferred tax during 2013. | |||||||||||||||||||||||
(b) | Primarily consists of changes resulting from disposals and the translation of foreign currenc | |||||||||||||||||||||||
(b) | Primarily consists of changes resulting from the translation of foreign currencies at different exchange rates from the beginning of the period to the end of the period. | |||||||||||||||||||||||
(c) | Consists of deferred tax adjustments recorded during 2012. | |||||||||||||||||||||||
(d) | Primarily consists of changes resulting from disposals and the translation of foreign currencies at different exchange rates from the beginning of the year to the end of the year. | |||||||||||||||||||||||
Components of other intangible assets by major classes | Other intangible assets, net, consisted of the following major classes (in millions of dollars): | Other intangible assets, net, consisted of the following major classes (in millions of dollars): | ||||||||||||||||||||||
30-Jun-13 | December 31, 2012 | |||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||||||||
Carrying | Amortization | Carrying | Carrying | Amortization | Carrying | |||||||||||||||||||
Amount | Value | Amount | Value | |||||||||||||||||||||
Amortizable intangible assets: | Amortizable intangible assets: | |||||||||||||||||||||||
Customer-related | $ | 694.6 | $ | (468.5 | ) | $ | 226.1 | Customer-related | $ | 694.7 | $ | (434.0 | ) | $ | 260.7 | |||||||||
Other(1) | 459.6 | (33.8 | ) | 425.8 | ||||||||||||||||||||
Other(1) | 454 | (59.8 | ) | 394.2 | ||||||||||||||||||||
Total | 1,154.30 | (467.8 | ) | 686.5 | ||||||||||||||||||||
Total | 1,148.60 | (528.3 | ) | 620.3 | ||||||||||||||||||||
Indefinite-lived intangible assets: | ||||||||||||||||||||||||
Indefinite-lived intangible assets: | Trade name | 3,330.00 | — | 3,330.00 | ||||||||||||||||||||
Trade name | 3,330.00 | — | 3,330.00 | Other(3) | 15.6 | — | 15.6 | |||||||||||||||||
Other(2) | 18.2 | — | 18.2 | Total | 3,345.60 | — | 3,345.60 | |||||||||||||||||
Total | 3,348.20 | — | 3,348.20 | Total other intangible assets, net | $ | 4,499.90 | $ | (467.8 | ) | $ | 4,032.10 | |||||||||||||
Total other intangible assets, net | $ | 4,496.80 | $ | (528.3 | ) | $ | 3,968.50 | |||||||||||||||||
31-Dec-12 | December 31, 2011 | |||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||||||||
Carrying | Amortization | Carrying | Carrying | Amortization | Carrying | |||||||||||||||||||
Amount | Value | Amount | Value | |||||||||||||||||||||
Amortizable intangible assets: | Amortizable intangible assets: | |||||||||||||||||||||||
Customer-related | $ | 694.7 | $ | (434.0 | ) | $ | 260.7 | Customer-related | $ | 672.6 | $ | (365.5 | ) | $ | 307.1 | |||||||||
Other(2) | 74.7 | (27.8 | ) | 46.9 | ||||||||||||||||||||
Other(1) | 459.6 | (33.8 | ) | 425.8 | ||||||||||||||||||||
Total | 747.3 | (393.3 | ) | 354 | ||||||||||||||||||||
Total | 1,154.30 | (467.8 | ) | 686.5 | ||||||||||||||||||||
Indefinite-lived intangible assets: | ||||||||||||||||||||||||
Indefinite-lived intangible assets: | Trade name | 2,190.00 | — | 2,190.00 | ||||||||||||||||||||
Trade name | 3,330.00 | — | 3,330.00 | Other(3) | 18.2 | — | 18.2 | |||||||||||||||||
Other(2) | 15.6 | — | 15.6 | Total | 2,208.20 | — | 2,208.20 | |||||||||||||||||
Total | 3,345.60 | — | 3,345.60 | Total other intangible assets, net | $ | 2,955.50 | $ | (393.3 | ) | $ | 2,562.20 | |||||||||||||
Total other intangible assets, net | $ | 4,499.90 | $ | (467.8 | ) | $ | 4,032.10 | |||||||||||||||||
_______________________________________________________________________________ | -1 | |||||||||||||||||||||||
Other amortizable intangible assets primarily include Dollar Thrifty concession agreements, Donlen trade name, reacquired franchise rights, non-compete agreements and technology-related intangibles. | ||||||||||||||||||||||||
-1 | Other amortizable intangible assets primarily include Dollar Thrifty concession agreements, Donlen trade name, reacquired franchise rights, non-compete agreements and technology-related intangibles. | |||||||||||||||||||||||
-2 | ||||||||||||||||||||||||
-2 | Other indefinite-lived intangible assets primarily consist of reacquired franchise rights. | Other amortizable intangible assets primarily consisted of our Advantage trade name and concession rights, Donlen trade name, reacquired franchise rights, non-compete agreements and technology-related intangibles. | ||||||||||||||||||||||
-3 | ||||||||||||||||||||||||
Other indefinite-lived intangible assets primarily consist of reacquired franchise rights. | ||||||||||||||||||||||||
Business_Combinations_and_Dive4
Business Combinations and Divestitures (Tables) | 6 Months Ended | 12 Months Ended | ||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | |||||||||||||||
Acquisition | ||||||||||||||||
Business Acquisition, Pro Forma Information | The following table presents unaudited pro forma financial information as if the acquisition of Dollar Thrifty had occurred on January 1, 2012 for the period presented below (in millions of dollars). | The unaudited pro forma financial information for the years ended December 31, 2012, 2011 and 2010 was as follows (in millions): | ||||||||||||||
Revenue | Earnings | Revenue | Earnings | |||||||||||||
2012 supplemental pro forma for the second quarter of 2012 (combined entity) | $ | 2,555.10 | $ | 123.6 | Actual from 09/01/11 - 12/31/11 (Donlen only)(1) | $ | 142.7 | $ | 2 | |||||||
2012 supplemental pro forma for the first half of 2012 (combined entity) | $ | 4,812.50 | $ | 90.6 | Actual from 11/19/12 - 12/31/12 (Dollar Thrifty only)(2) | 170.6 | (25.9 | ) | ||||||||
2012 supplemental pro forma from 1/1/12 - 12/31/12 (combined entity)(3) | 10,193.30 | 441.8 | ||||||||||||||
2011 supplemental pro forma from 1/1/11 - 12/31/11 (combined entity)(4) | 9,920.30 | 235.1 | ||||||||||||||
2010 supplemental pro forma from 1/1/10 - 12/31/10 (combined entity)(5) | 7,904.30 | (48.6 | ) | |||||||||||||
_______________________________________________ | ||||||||||||||||
-1 | Donlen's actual earnings for the four months ended December 31, 2011 was impacted by certain charges related to the amortization expense associated with the acquired intangible assets and the fair value adjustment related to acquired software, as well as, the write-off of certain unamortized debt costs. | |||||||||||||||
-2 | Dollar Thrifty's actual earnings for the 43 days ended December 31, 2012 was impacted by certain charges related to the amortization expense associated with the acquired intangible assets and non-recurring compensation costs in connection with the merger. | |||||||||||||||
-3 | The unaudited pro forma financial information for the year ended December 31, 2012 combines the historical results of Hertz and Dollar Thrifty for the year ended December 31, 2012, and the effects of the pro forma adjustments listed below. | |||||||||||||||
-4 | The unaudited pro forma financial information for the year ended December 31, 2011 combines the historical results of Hertz, Donlen and Dollar Thrifty for the year ended December 31, 2011, and the effects of the pro forma adjustments listed below. | |||||||||||||||
-5 | The unaudited pro forma financial information for the year ended December 31, 2010 combines the historical results of Hertz and Donlen for the year ended December 31, 2010, and the effects of the pro forma adjustments listed below. | |||||||||||||||
Dollar Thrifty Automotive Group Inc. | ||||||||||||||||
Acquisition | ||||||||||||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following summarizes the fair values of the assets acquired and liabilities assumed as of the Dollar Thrifty acquisition date (in millions): | |||||||||||||||
Cash and cash equivalents | $ | 535 | ||||||||||||||
Restricted cash and cash equivalents | 307 | |||||||||||||||
Receivables | 170 | |||||||||||||||
Inventories | 8 | |||||||||||||||
Prepaid expenses and other assets | 41 | |||||||||||||||
Revenue earning equipment | 1,614.00 | |||||||||||||||
Property and equipment | 119 | |||||||||||||||
Other intangible assets | 1,546.00 | |||||||||||||||
Other assets | 35 | |||||||||||||||
Goodwill | 885 | |||||||||||||||
Accounts payable | (43.0 | ) | ||||||||||||||
Accrued liabilities | (277.0 | ) | ||||||||||||||
Deferred taxes on income | (864.0 | ) | ||||||||||||||
Debt | (1,484.0 | ) | ||||||||||||||
Total | $ | 2,592.00 | ||||||||||||||
Donlen Corporation | ||||||||||||||||
Acquisition | ||||||||||||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following summarizes the fair values of the assets acquired and liabilities assumed as of the acquisition date (in millions): | |||||||||||||||
Cash and cash equivalents | $ | 35.6 | ||||||||||||||
Receivables | 64 | |||||||||||||||
Prepaid expenses and other assets | 7 | |||||||||||||||
Revenue earning equipment | 1,120.60 | |||||||||||||||
Property and equipment | 13.5 | |||||||||||||||
Other intangible assets | 75 | |||||||||||||||
Goodwill | 51.1 | |||||||||||||||
Accounts payable | (39.3 | ) | ||||||||||||||
Accrued liabilities | (226.8 | ) | ||||||||||||||
Deferred taxes on income | (121.9 | ) | ||||||||||||||
Debt | (728.8 | ) | ||||||||||||||
Total | $ | 250 | ||||||||||||||
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination | Other intangible assets and their amortization periods are as follows: | |||||||||||||||
Useful life | Fair value | |||||||||||||||
(in years) | (in millions) | |||||||||||||||
Customer relationships | 16 | $ | 65 | |||||||||||||
Trademark | 20 | 7 | ||||||||||||||
Non-compete agreement | 5 | 3 | ||||||||||||||
Total | $ | 75 | ||||||||||||||
Debt_Tables1
Debt (Tables) | 6 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | ||||||||||||||||||||||||||||||
Debt | |||||||||||||||||||||||||||||||
Components of debt | Our debt consists of the following (in millions of dollars): | Our debt consists of the following (in millions of dollars): | |||||||||||||||||||||||||||||
Facility | Average | Fixed or | Maturity | June 30, | December 31, | Facility | Average Interest | Fixed or | Maturity | December 31, | December 31, | ||||||||||||||||||||
Interest Rate | Floating | 2013 | 2012 | Rate at | Floating | 2012 | 2011 | ||||||||||||||||||||||||
at June 30, | Interest | December 31, | Interest | ||||||||||||||||||||||||||||
2013(1) | Rate | 2012(1) | Rate | ||||||||||||||||||||||||||||
Corporate Debt | Corporate Debt | ||||||||||||||||||||||||||||||
Senior Term Facility | 3.26 | % | Floating | Mar-18 | $ | 2,114.80 | $ | 2,125.50 | Senior Term Facility | 3.75 | % | Floating | Mar-18 | $ | 2,125.50 | $ | 1,389.50 | ||||||||||||||
Senior ABL Facility | 2.89 | % | Floating | Mar-16 | 1,005.80 | 195 | Senior ABL Facility | 2.47 | % | Floating | Mar-16 | 195 | — | ||||||||||||||||||
Senior Notes(2) | 6.58 | % | Fixed | 4/2018 - 10/2022 | 3,900.00 | 3,650.00 | Senior Notes(2) | 6.74 | % | Fixed | 10/2018 - 10/2022 | 3,650.00 | 2,638.60 | ||||||||||||||||||
Promissory Notes | 6.96 | % | Fixed | 6/2012 - 1/2028 | 48.7 | 48.7 | Promissory Notes | 6.96 | % | Fixed | 6/2012 - 1/2028 | 48.7 | 224.7 | ||||||||||||||||||
Other Corporate Debt | 3.51 | % | Floating | Various | 58.5 | 88.7 | Other Corporate Debt | 4.4 | % | Floating | Various | 88.7 | 49.6 | ||||||||||||||||||
Unamortized Net Premium (Corporate) | 3.2 | 3.3 | Unamortized Net (Discount) Premium (Corporate) | 3.3 | (6.9 | ) | |||||||||||||||||||||||||
Total Corporate Debt | 7,131.00 | 6,111.20 | Total Corporate Debt | 6,111.20 | 4,295.50 | ||||||||||||||||||||||||||
Fleet Debt | Fleet Debt | ||||||||||||||||||||||||||||||
HVF U.S. ABS Program | HVF U.S. ABS Program | ||||||||||||||||||||||||||||||
HVF U.S. Fleet Variable Funding Notes: | HVF U.S. Fleet Variable Funding Notes: | ||||||||||||||||||||||||||||||
HVF Series 2009-1(3) | 1.04 | % | Floating | Mar-14 | 2,590.00 | 2,350.00 | HVF Series 2009-1(3) | 1.11 | % | Floating | Mar-14 | 2,350.00 | 1,000.00 | ||||||||||||||||||
HVF Series 2010-2(3) | N/A | Floating | Mar-13 | — | 170 | ||||||||||||||||||||||||||
2,590.00 | 2,350.00 | HVF Series 2011-2(3) | N/A | Floating | Apr-12 | — | 175 | ||||||||||||||||||||||||
HVF U.S. Fleet Medium Term Notes | 2,350.00 | 1,345.00 | |||||||||||||||||||||||||||||
HVF Series 2009-2(3) | 5.37 | % | Fixed | 3/2013 - 3/2015 | 807.5 | 1,095.90 | |||||||||||||||||||||||||
HVF Series 2010-1(3) | 3.77 | % | Fixed | 2/2014 - 2/2018 | 749.8 | 749.8 | HVF U.S. Fleet Medium Term Notes | ||||||||||||||||||||||||
HVF Series 2011-1(3) | 2.86 | % | Fixed | 3/2015 - 3/2017 | 598 | 598 | HVF Series 2009-2(3) | 5.11 | % | Fixed | 3/2013 - 3/2015 | 1,095.90 | 1,384.30 | ||||||||||||||||||
HVF Series 2013-1(3) | 1.68 | % | Fixed | 8/2016 - 8/2018 | 950 | — | HVF Series 2010-1(3) | 3.77 | % | Fixed | 2/2014 - 2/2018 | 749.8 | 749.8 | ||||||||||||||||||
HVF Series 2011-1(3) | 2.86 | % | Fixed | 3/2015 - 3/2017 | 598 | 598 | |||||||||||||||||||||||||
3,105.30 | 2,443.70 | ||||||||||||||||||||||||||||||
2,443.70 | 2,732.10 | ||||||||||||||||||||||||||||||
RCFC U.S. ABS Program | RCFC U.S. ABS Program | ||||||||||||||||||||||||||||||
RCFC U.S. Fleet Variable Funding Notes | RCFC U.S. Fleet Variable Funding Notes | ||||||||||||||||||||||||||||||
RCFC Series 2010-3 Notes(3)(4) | 1.03 | % | Floating | Dec-13 | 540 | 519 | RCFC Series 2010-3 Notes(3)(4) | 1.06 | % | Floating | Dec-13 | 519 | — | ||||||||||||||||||
RCFC U.S. Fleet Medium Term Notes | RCFC U.S. Fleet Medium Term Notes | ||||||||||||||||||||||||||||||
RCFC Series 2011-1 Notes(3)(4) | 2.81 | % | Fixed | Feb-15 | 500 | 500 | RCFC Series 2011-1 Notes(3)(4) | 2.81 | % | Fixed | Feb-15 | 500 | — | ||||||||||||||||||
RCFC Series 2011-2 Notes(3)(4) | 3.21 | % | Fixed | May-15 | 400 | 400 | RCFC Series 2011-2 Notes(3)(4) | 3.21 | % | Fixed | May-15 | 400 | — | ||||||||||||||||||
1,440.00 | 1,419.00 | 1,419.00 | — | ||||||||||||||||||||||||||||
Donlen ABS Program | Donlen ABS Program | ||||||||||||||||||||||||||||||
Donlen GN II Variable Funding Notes(5) | 1 | % | Floating | Dec-13 | 943.8 | 899.3 | Donlen GN II Variable Funding Notes(3) | 1.15 | % | Floating | Dec-13 | 899.3 | 811.2 | ||||||||||||||||||
Other Fleet Debt | Other Fleet Debt | ||||||||||||||||||||||||||||||
U.S. Fleet Financing Facility | 2.95 | % | Floating | Sep-15 | 171 | 166 | U.S. Fleet Financing Facility | 3.27 | % | Floating | Sep-15 | 166 | 136 | ||||||||||||||||||
European Revolving Credit Facility | 2.67 | % | Floating | Jun-15 | 357.9 | 185.3 | European Revolving Credit Facility | 2.86 | % | Floating | Jun-15 | 185.3 | 200.6 | ||||||||||||||||||
European Fleet Notes | 8.5 | % | Fixed | Jul-15 | 520.5 | 529.4 | European Fleet Notes | 8.5 | % | Fixed | Jul-15 | 529.4 | 517.7 | ||||||||||||||||||
European Securitization(3) | 2.5 | % | Floating | Jul-14 | 363 | 242.2 | European Securitization(3) | 2.48 | % | Floating | Jul-14 | 242.2 | 256.2 | ||||||||||||||||||
Hertz-Sponsored Canadian Securitization(3) | 2.14 | % | Floating | Mar-14 | 124.2 | 100.5 | Hertz-Sponsored Canadian Securitization(3) | 2.16 | % | Floating | Jun-13 | 100.5 | 68.3 | ||||||||||||||||||
Dollar Thrifty Sponsored Canadian Securitization(3)(4) | 2.13 | % | Floating | Aug-14 | 76.4 | 55.3 | Dollar Thrifty Sponsored Canadian Securitization(3)(4) | 2.13 | % | Floating | Aug-14 | 55.3 | — | ||||||||||||||||||
Australian Securitization(3)(6) | 4.17 | % | Floating | Dec-14 | 119.7 | 148.9 | Australian Securitization(3) | 4.61 | % | Floating | Dec-14 | 148.9 | 169.3 | ||||||||||||||||||
Brazilian Fleet Financing Facility | 13.89 | % | Floating | Oct-13 | 13 | 14 | Brazilian Fleet Financing Facility | 13.07 | % | Floating | Feb-13 | 14 | 23.1 | ||||||||||||||||||
Capitalized Leases | 4.08 | % | Floating | Various | 429.6 | 337.6 | Capitalized Leases | 4.4 | % | Floating | Various | 337.6 | 363.7 | ||||||||||||||||||
Unamortized Discount (Fleet) | 8.8 | 12.1 | Unamortized Net (Discount) Premium (Fleet) | 12.1 | (10.9 | ) | |||||||||||||||||||||||||
2,184.10 | 1,791.30 | 1,791.30 | 1,724.00 | ||||||||||||||||||||||||||||
Total Fleet Debt | 10,263.20 | 8,903.30 | Total Fleet Debt | 8,903.30 | 6,612.30 | ||||||||||||||||||||||||||
Total Debt | $ | 17,394.20 | $ | 15,014.50 | Total Debt | $ | 15,014.50 | $ | 10,907.80 | ||||||||||||||||||||||
Note: | -1 | ||||||||||||||||||||||||||||||
For further information on the definitions and terms of our debt, see Note 5 of the Notes to our audited annual consolidated financial statements included in our Form 10-K under the caption "Item 8—Financial Statements and Supplementary Data." | As applicable, reference is to the December 31, 2012 weighted average interest rate (weighted by principal balance). | ||||||||||||||||||||||||||||||
-1 | -2 | ||||||||||||||||||||||||||||||
As applicable, reference is to the June 30, 2013 weighted average interest rate (weighted by principal balance). | References to our "Senior Notes" include the series of Hertz's unsecured senior notes set forth in the table below. As of December 31, 2012 and December 31, 2011, the outstanding principal amount for each such series of the Senior Notes is also specified below. | ||||||||||||||||||||||||||||||
-2 | |||||||||||||||||||||||||||||||
References to our "Senior Notes" include the series of Hertz's unsecured senior notes set forth in the table below. As of June 30, 2013 and December 31, 2012, the outstanding principal amount for each such series of the Senior Notes is as specified below. | Outstanding Principal (in millions) | ||||||||||||||||||||||||||||||
Senior Notes | December 31, | December 31, | |||||||||||||||||||||||||||||
2012 | 2011 | ||||||||||||||||||||||||||||||
Outstanding Principal | 8.875% Senior Notes due January 2014 | $ | — | $ | 162.3 | ||||||||||||||||||||||||||
(in millions) | 7.875% Senior Notes due January 2014 | — | 276.3 | € | (213.5 | ) | |||||||||||||||||||||||||
Senior Notes | June 30, | December 31, | 7.50% Senior Notes due October 2018 | 700 | 700 | ||||||||||||||||||||||||||
2013 | 2012 | 6.75% Senior Notes due April 2019 | 1,250.00 | 1,000.00 | |||||||||||||||||||||||||||
4.25% Senior Notes due April 2018 | $ | 250 | $ | — | 5.875% Senior Notes due October 2020 | 700 | — | ||||||||||||||||||||||||
7.50% Senior Notes due October 2018 | 700 | 700 | 7.375% Senior Notes due January 2021 | 500 | 500 | ||||||||||||||||||||||||||
6.75% Senior Notes due April 2019 | 1,250.00 | 1,250.00 | 6.25% Senior Notes due October 2022 | 500 | — | ||||||||||||||||||||||||||
5.875% Senior Notes due October 2020 | 700 | 700 | |||||||||||||||||||||||||||||
7.375% Senior Notes due January 2021 | 500 | 500 | $ | 3,650.00 | $ | 2,638.60 | |||||||||||||||||||||||||
6.25% Senior Notes due October 2022 | 500 | 500 | |||||||||||||||||||||||||||||
$ | 3,900.00 | $ | 3,650.00 | -3 | |||||||||||||||||||||||||||
Maturity reference is to the "expected final maturity date" as opposed to the subsequent "legal maturity date." The expected final maturity date is the date by which Hertz and investors in the relevant indebtedness expect the relevant indebtedness to be repaid. The legal final maturity date is the date on which the relevant indebtedness is legally due and payable. | |||||||||||||||||||||||||||||||
-3 | -4 | ||||||||||||||||||||||||||||||
Maturity reference is to the "expected final maturity date" as opposed to the subsequent "legal maturity date." The expected final maturity date is the date by which Hertz and investors in the relevant indebtedness expect the relevant indebtedness to be repaid. The legal final maturity date is the date on which the relevant indebtedness is legally due and payable. | RCFC U.S. ABS Program and the Dollar Thrifty-Sponsored Canadian Securitization represent fleet debt acquired in connection with the Dollar Thrifty acquisition on November 19, 2012. | ||||||||||||||||||||||||||||||
-4 | |||||||||||||||||||||||||||||||
RCFC U.S. ABS Program and the Dollar Thrifty-Sponsored Canadian Securitization represent fleet debt acquired in connection with the Dollar Thrifty acquisition on November 19, 2012. | |||||||||||||||||||||||||||||||
Schedule of outstanding principal amount for each series of the Senior Notes | |||||||||||||||||||||||||||||||
Outstanding Principal | Outstanding Principal (in millions) | ||||||||||||||||||||||||||||||
(in millions) | Senior Notes | December 31, | December 31, | ||||||||||||||||||||||||||||
Senior Notes | June 30, | December 31, | 2012 | 2011 | |||||||||||||||||||||||||||
2013 | 2012 | 8.875% Senior Notes due January 2014 | $ | — | $ | 162.3 | |||||||||||||||||||||||||
4.25% Senior Notes due April 2018 | $ | 250 | $ | — | 7.875% Senior Notes due January 2014 | — | 276.3 | € | (213.5 | ) | |||||||||||||||||||||
7.50% Senior Notes due October 2018 | 700 | 700 | 7.50% Senior Notes due October 2018 | 700 | 700 | ||||||||||||||||||||||||||
6.75% Senior Notes due April 2019 | 1,250.00 | 1,250.00 | 6.75% Senior Notes due April 2019 | 1,250.00 | 1,000.00 | ||||||||||||||||||||||||||
5.875% Senior Notes due October 2020 | 700 | 700 | 5.875% Senior Notes due October 2020 | 700 | — | ||||||||||||||||||||||||||
7.375% Senior Notes due January 2021 | 500 | 500 | 7.375% Senior Notes due January 2021 | 500 | 500 | ||||||||||||||||||||||||||
6.25% Senior Notes due October 2022 | 500 | 500 | 6.25% Senior Notes due October 2022 | 500 | — | ||||||||||||||||||||||||||
$ | 3,900.00 | $ | 3,650.00 | $ | 3,650.00 | $ | 2,638.60 | ||||||||||||||||||||||||
Components of maturities of debt | The aggregate amounts of maturities of debt for each of the twelve-month periods ending December 31 (in millions of dollars) are as follows: | ||||||||||||||||||||||||||||||
2014 | $ | 7,028.30 | (including $6,741.1 of other short-term borrowings*) | ||||||||||||||||||||||||||||
2013 | $ | 5,744.10 | (including $5,244.0 of other short-term borrowings*) | ||||||||||||||||||||||||||||
2015 | $ | 2,124.40 | |||||||||||||||||||||||||||||
2014 | $ | 1,122.10 | |||||||||||||||||||||||||||||
2016 | $ | 1,140.00 | |||||||||||||||||||||||||||||
2015 | $ | 1,894.10 | |||||||||||||||||||||||||||||
2017 | $ | 366.5 | |||||||||||||||||||||||||||||
2016 | $ | 267.1 | |||||||||||||||||||||||||||||
2018 | $ | 2,819.10 | |||||||||||||||||||||||||||||
2017 | $ | 219.2 | |||||||||||||||||||||||||||||
After 2018 | $ | 3,903.90 | |||||||||||||||||||||||||||||
After 2017 | $ | 5,752.50 | |||||||||||||||||||||||||||||
_______________________________________________________________________________ | |||||||||||||||||||||||||||||||
_______________________________________________________________________________ | |||||||||||||||||||||||||||||||
* | Our short-term borrowings as of June 30, 2013 include, among other items, the amounts outstanding under the Senior ABL Facility, HVF U.S. Fleet Variable Funding Notes, RCFC U.S. Fleet Variable Funding Notes, Donlen GN II Variable Funding Notes, U.S. Fleet Financing Facility, European Revolving Credit Facility, European Securitization, Hertz-Sponsored Canadian Securitization, Dollar Thrifty-Sponsored Canadian Securitization, Australian Securitization, Brazilian Fleet Financing Facility and Capitalized Leases. These amounts are reflected as short-term borrowings, regardless of the facility maturity date, as these facilities are revolving in nature and/or the outstanding borrowings have maturities of three months or less. As of June 30, 2013, short-term borrowings had a weighted average interest rate of 1.8%. | ||||||||||||||||||||||||||||||
* | Our short-term borrowings as of December 31, 2012 include, among other items, the amounts outstanding under the Senior ABL Facility, HVF U.S. Fleet Variable Funding Notes, RCFC U.S. Fleet Variable Funding Notes, Donlen GN II Variable Funding Notes, U.S. Fleet Financing Facility, European Revolving Credit Facility, European Securitization, Hertz-Sponsored Canadian Securitization, Dollar Thrifty-Sponsored Canadian Securitization, Australian Securitization, Brazilian Fleet Financing Facility and Capitalized Leases. These amounts are reflected as short-term borrowings, regardless of the facility maturity date, as these facilities are revolving in nature and/or the outstanding borrowings have maturities of three months or less. As of December 31, 2012, short-term borrowings had a weighted average interest rate of 1.8%. | ||||||||||||||||||||||||||||||
Schedule of facilities available for the use of Hertz and its subsidiaries | As of June 30, 2013, the following facilities were available for the use of Hertz and its subsidiaries (in millions of dollars): | As of December 31, 2012, the following facilities were available for the use of Hertz and its subsidiaries (in millions of dollars): | |||||||||||||||||||||||||||||
Remaining | Availability Under | Remaining | Availability Under | ||||||||||||||||||||||||||||
Capacity | Borrowing Base | Capacity | Borrowing Base | ||||||||||||||||||||||||||||
Limitation | Limitation | ||||||||||||||||||||||||||||||
Corporate Debt | Corporate Debt | ||||||||||||||||||||||||||||||
Senior ABL Facility | $ | 357.3 | $ | 357.3 | Senior ABL Facility | $ | 1,183.70 | $ | 1,146.00 | ||||||||||||||||||||||
Total Corporate Debt | 357.3 | 357.3 | Total Corporate Debt | 1,183.70 | 1,146.00 | ||||||||||||||||||||||||||
Fleet Debt | Fleet Debt | ||||||||||||||||||||||||||||||
HVF U.S. Fleet Variable Funding Notes | 148.8 | — | HVF U.S. Fleet Variable Funding Notes | 88.8 | — | ||||||||||||||||||||||||||
RCFC U.S. Fleet Variable Funding Notes | 60 | — | |||||||||||||||||||||||||||||
Donlen GN II Variable Funding Notes | 60 | — | RCFC U.S. Fleet Variable Funding Notes | 81 | — | ||||||||||||||||||||||||||
U.S. Fleet Financing Facility | 19 | — | |||||||||||||||||||||||||||||
European Revolving Credit Facility | 58.5 | — | Donlen GN II Variable Funding Notes | 105 | — | ||||||||||||||||||||||||||
European Securitization | 157.4 | — | |||||||||||||||||||||||||||||
Hertz-Sponsored Canadian Securitization | 85 | — | U.S. Fleet Financing Facility | 24 | — | ||||||||||||||||||||||||||
Dollar Thrifty-Sponsored Canadian Securitization | 66.9 | — | |||||||||||||||||||||||||||||
Australian Securitization | 112.3 | — | European Revolving Credit Facility | 105.9 | 7.9 | ||||||||||||||||||||||||||
Total Fleet Debt | 767.9 | — | European Securitization | 287.2 | — | ||||||||||||||||||||||||||
Total | $ | 1,125.20 | $ | 357.3 | Hertz-Sponsored Canadian Securitization | 100.5 | — | ||||||||||||||||||||||||
Dollar Thrifty-Sponsored Canadian Securitization | 95.5 | — | |||||||||||||||||||||||||||||
Australian Securitization | 110.5 | — | |||||||||||||||||||||||||||||
Capitalized Leases | 85.1 | 27.5 | |||||||||||||||||||||||||||||
Total Fleet Debt | 1,083.50 | 35.4 | |||||||||||||||||||||||||||||
Total | $ | 2,267.20 | $ | 1,181.40 | |||||||||||||||||||||||||||
Employee_Retirement_Benefits_T1
Employee Retirement Benefits (Tables) | 6 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Retirement Benefits | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Expected Benefit Payments [Table Text Block] | The following table presents estimated future benefit payments (in millions of dollars): | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension Benefits | Postretirement | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefits (U.S.) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2013 | $ | 31.1 | $ | 1.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 34.4 | 1.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2015 | 40.6 | 1.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2016 | 44.3 | 1.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2017 | 51.1 | 1.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2018-2022 | 314.1 | 6.7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 515.6 | $ | 13.6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Allocation of Plan Assets [Table Text Block] | The fair value measurements of our U.S. pension plan assets are based upon significant observable inputs (Level 2) and relate to common collective trusts and other pooled investment vehicles consisting of the following asset categories (in millions of dollars): | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset Category | 2012 | 2011 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short Term Investments | $ | 8.3 | $ | 11.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Large Cap | 135.9 | 119.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Mid Cap | 42 | 34.9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Small Cap | 31.6 | 27.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
International Large Cap | 109.3 | 89 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed Income Securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasuries | 67.5 | 53.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate Bonds | 83.8 | 68.7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Government Bonds | 4.4 | 4.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Municipal Bonds | 9.1 | 9.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate (REITs) | 6.5 | 5.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total fair value of pension plan assets | $ | 498.4 | $ | 423.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Our U.K. Plan accounts for most of the $178.3 million in fair value of Non-U.S. plan assets. The fair value measurements of our U.K. pension plan assets are based upon significant observable inputs (Level 2) and relate to common collective trusts and other pooled investment vehicles consisting of the following asset categories (in millions of dollars): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset Category | 2012 | 2011 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short Term Investments | $ | 12.9 | $ | 11.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.K. Equities | 66.1 | 57.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Overseas Equities | 67.1 | 60.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.K. Conventional Gilts | 6.5 | 6.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate Bonds | 5.3 | 5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Global Treasury Bonds | 9.3 | 6.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Index‑Linked Gilts‑Stocks | 1.8 | 1.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total fair value of pension plan assets | $ | 169 | $ | 149.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates [Table Text Block] | Changing the assumed health care cost trend rates by one percentage point is estimated to have the following effects (in millions of dollars): | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
One Percentage Point | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Increase | Decrease | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effect on total of service and interest cost components | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effect on postretirement benefit obligation | $ | 0.5 | $ | (0.4 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Net Funded Status [Table Text Block] | The following tables set forth the funded status and the net periodic pension cost of the Hertz Retirement Plan, other postretirement benefit plans (including health care and life insurance plans covering domestic (“U.S.”) employees and the retirement plans for international operations (“Non-U.S.”), together with amounts included in our consolidated balance sheets and statements of operations (in millions of dollars): | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension Benefits | Postretirement | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. | Non-U.S. | Benefits (U.S.) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2012 | 2011 | 2012 | 2011 | 2012 | 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in Benefit Obligation | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefit obligation at January 1 | $ | 606.4 | $ | 549.7 | $ | 190.8 | $ | 201.5 | $ | 18.2 | $ | 19 | ||||||||||||||||||||||||||||||||||||||||||||||||
Service cost | 24.8 | 26.2 | 1.9 | 4 | 0.2 | 0.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest cost | 28.2 | 27.5 | 9.7 | 11 | 0.8 | 0.9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee contributions | — | — | 0.1 | 0.7 | 0.8 | 0.9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Plan amendments | — | (10.2 | ) | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Plan curtailments | — | — | — | (5.9 | ) | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Plan settlements | (5.4 | ) | (7.4 | ) | — | 0.1 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefits paid | (29.9 | ) | (18.4 | ) | (5.5 | ) | (4.0 | ) | (2.2 | ) | (2.2 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
Foreign exchange translation | — | — | 7.7 | (1.0 | ) | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Actuarial loss (gain) | 54.8 | 39 | 9.4 | (15.1 | ) | 1.2 | (0.6 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Plan combination | — | — | 10.4 | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | — | — | (0.1 | ) | (0.5 | ) | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefit obligation at December 31 | $ | 678.9 | $ | 606.4 | $ | 224.4 | $ | 190.8 | $ | 19 | $ | 18.2 | ||||||||||||||||||||||||||||||||||||||||||||||||
Change in Plan Assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value of plan assets at January 1 | $ | 423.2 | $ | 365.9 | $ | 157 | $ | 152.8 | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Actual return on plan assets | 64.2 | 15.3 | 15.6 | (7.6 | ) | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Company contributions | 46.3 | 67.8 | 4.7 | 16 | 1.4 | 1.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee contributions | — | — | 0.1 | 0.7 | 0.8 | 0.9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Plan settlements | (5.4 | ) | (7.4 | ) | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefits paid | (29.9 | ) | (18.4 | ) | (5.5 | ) | (4.0 | ) | (2.2 | ) | (2.2 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
Foreign exchange translation | — | — | 6.5 | (0.7 | ) | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | — | — | (0.1 | ) | (0.2 | ) | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value of plan assets at December 31 | $ | 498.4 | $ | 423.2 | $ | 178.3 | $ | 157 | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Funded Status of the Plan | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Plan assets less than benefit obligation | $ | (180.5 | ) | $ | (183.2 | ) | $ | (46.1 | ) | $ | (33.8 | ) | $ | (19.0 | ) | $ | (18.2 | ) | ||||||||||||||||||||||||||||||||||||||||||
Schedule of Defined Benefit Plan, Amounts Included in Financial Statements and Assumptions Used [Table Text Block] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension Benefits | Postretirement | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. | Non-U.S. | Benefits (U.S.) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2012 | 2011 | 2012 | 2011 | 2012 | 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amounts recognized in balance sheet: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Liabilities | $ | (180.5 | ) | $ | (183.2 | ) | $ | (46.1 | ) | $ | (33.8 | ) | $ | (19.0 | ) | $ | (18.2 | ) | ||||||||||||||||||||||||||||||||||||||||||
Net obligation recognized in the balance sheet | $ | (180.5 | ) | $ | (183.2 | ) | $ | (46.1 | ) | $ | (33.8 | ) | $ | (19.0 | ) | $ | (18.2 | ) | ||||||||||||||||||||||||||||||||||||||||||
Prior service credit (cost) | $ | 9.1 | $ | 10.1 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Net gain (loss) | (167.6 | ) | (160.3 | ) | (17.5 | ) | (10.7 | ) | (2.3 | ) | (1.2 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated other comprehensive loss | (158.5 | ) | (150.2 | ) | (17.5 | ) | (10.7 | ) | (2.3 | ) | (1.2 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
Unfunded accrued pension or postretirement benefit | (22.0 | ) | (33.0 | ) | (28.6 | ) | (23.1 | ) | (16.7 | ) | (17.0 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
Net obligation recognized in the balance sheet | $ | (180.5 | ) | $ | (183.2 | ) | $ | (46.1 | ) | $ | (33.8 | ) | $ | (19.0 | ) | $ | (18.2 | ) | ||||||||||||||||||||||||||||||||||||||||||
Total recognized in other comprehensive (income) loss | $ | 8.3 | $ | 34.5 | $ | 6.8 | $ | 12.2 | $ | 1.1 | $ | (0.7 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Total recognized in net periodic benefit cost and other comprehensive (income) loss | $ | 43.5 | $ | 67.1 | $ | 6.1 | $ | 0.9 | $ | 2.1 | $ | 0.5 | ||||||||||||||||||||||||||||||||||||||||||||||||
Estimated amounts that will be amortized from accumulated other comprehensive (income) loss over the next fiscal year: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net gain (loss) | $ | (16.0 | ) | $ | (11.1 | ) | $ | (0.4 | ) | $ | 0.1 | $ | (0.1 | ) | $ | (0.1 | ) | |||||||||||||||||||||||||||||||||||||||||||
Accumulated Benefit Obligation at December 31 | $ | 619.2 | $ | 537 | $ | 216.8 | $ | 187.6 | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted‑average assumptions as of December 31 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discount rate | 4 | % | 4.7 | % | 4.3 | % | 4.8 | % | 3.6 | % | 4.4 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
Expected return on assets | 7.6 | % | 8 | % | 7.4 | % | 7.4 | % | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||||
Average rate of increase in compensation | 4.6 | % | 4.6 | % | 2 | % | 2.1 | % | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||||
Initial health care cost trend rate | N/A | N/A | N/A | N/A | 7.8 | % | 8.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Ultimate health care cost trend rate | N/A | N/A | N/A | N/A | 4.5 | % | 4.5 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of years to ultimate trend rate | N/A | N/A | N/A | N/A | 17 | 18 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Net Benefit Costs [Table Text Block] | The following table sets forth the net periodic pension and postretirement (including health care, life insurance and auto) expense (in millions of dollars): | The following table sets forth the net periodic pension and postretirement (including health care, life insurance and auto) expense (in millions of dollars): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension Benefits | Postretirement | Pension Benefits | Postretirement | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. | Non-U.S. | Benefits (U.S.) | U.S. | Non-U.S. | Benefits (U.S.) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, | Years Ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2012 | 2011 | 2010 | 2012 | 2011 | 2010 | 2012 | 2011 | 2010 | ||||||||||||||||||||||||||||||||||||||||||||||
Components of Net Periodic | Components of Net Periodic Benefit Cost: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefit Cost: | Service cost | $ | 24.8 | $ | 26.2 | $ | 24 | $ | 1.9 | $ | 4 | $ | 5.2 | $ | 0.2 | $ | 0.2 | $ | 0.3 | |||||||||||||||||||||||||||||||||||||||||
Service cost | $ | 7.1 | $ | 7 | $ | 0.7 | $ | 0.3 | $ | — | $ | 0.1 | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest cost | 28.2 | 27.5 | 26.1 | 9.7 | 11 | 9.7 | 0.8 | 0.9 | 0.9 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Interest cost | 6.9 | 7.4 | 2.3 | 2.3 | 0.1 | 0.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expected return on plan assets | (31.5 | ) | (30.5 | ) | (26.6 | ) | (12.1 | ) | (12.8 | ) | (10.0 | ) | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Expected return on plan assets | (7.5 | ) | (8.0 | ) | (3.2 | ) | (3.0 | ) | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net amortizations | 11.8 | 7.2 | 4.6 | (0.1 | ) | (0.7 | ) | (1.0 | ) | — | 0.1 | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Net amortizations | 4 | 3.2 | 0.1 | (0.1 | ) | 0.1 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Settlement loss | 2 | 2.2 | 0.4 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net pension / | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
postretirement expense | $ | 10.5 | $ | 9.6 | $ | (0.1 | ) | $ | (0.5 | ) | $ | 0.2 | $ | 0.3 | Curtailment gain | — | — | — | — | (12.9 | ) | (0.2 | ) | — | — | — | ||||||||||||||||||||||||||||||||||
Special termination cost | — | — | — | — | 0.1 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Pension Benefits | Postretirement | Net pension and postretirement expense | $ | 35.3 | $ | 32.6 | $ | 28.5 | $ | (0.6 | ) | $ | (11.3 | ) | $ | 3.7 | $ | 1 | $ | 1.2 | $ | 1.2 | ||||||||||||||||||||||||||||||||||||||
U.S. | Non-U.S. | Benefits (U.S.) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | Weighted‑average discount rate for expense (January 1) | 4.71 | % | 5.12 | % | 5.42 | % | 4.78 | % | 5.36 | % | 5.71 | % | 4.4 | % | 4.9 | % | 5.4 | % | ||||||||||||||||||||||||||||||||||||
Components of Net Periodic | Weighted‑average assumed long-term rate of return on assets (January 1) | 8 | % | 8.4 | % | 8.5 | % | 7.44 | % | 7.46 | % | 7.46 | % | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||
Benefit Cost: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Service cost | $ | 14.4 | $ | 13.3 | $ | 1.3 | $ | 0.6 | $ | 0.1 | $ | 0.2 | Initial health care cost trend rate | N/A | N/A | N/A | N/A | N/A | N/A | 8.1 | % | 8.4 | % | 8.7 | % | |||||||||||||||||||||||||||||||||||
Interest cost | 13.6 | 13.9 | 4.6 | 4.6 | 0.3 | 0.4 | Ultimate health care cost trend rate | N/A | N/A | N/A | N/A | N/A | N/A | 4.5 | % | 4.5 | % | 4.5 | % | |||||||||||||||||||||||||||||||||||||||||
Expected return on plan assets | (15.0 | ) | (15.3 | ) | (6.3 | ) | (6.0 | ) | — | — | Number of years to ultimate trend rate | N/A | N/A | N/A | N/A | N/A | N/A | 17 | 18 | 19 | ||||||||||||||||||||||||||||||||||||||||
Net amortizations | 8.3 | 6 | 0.2 | (0.1 | ) | 0.1 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net pension / | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
postretirement expense | $ | 21.3 | $ | 17.9 | $ | (0.2 | ) | $ | (0.9 | ) | $ | 0.5 | $ | 0.6 | ||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Multiemployer Plans [Table Text Block] | For plans that are not individually significant to us, the total amount of contributions is presented in the aggregate. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension Protection Act Zone Status | Contributions by | Expiration | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The Hertz | Dates of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FIP / | Corporation | Collective | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RP Status | Bargaining | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EIN /Pension | Pending / | Surcharge | Agreements | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In millions of dollars) | Plan Number | 2012 | 2011 | Implemented | 2012 | 2011 | 2010 | Imposed | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Western Conference of Teamsters | 91-6145047 | Green | Green | NA | $ | 4.1 | $ | 3.9 | $ | 3.8 | NA | Various | ||||||||||||||||||||||||||||||||||||||||||||||||
Teamsters Central States | 36-6044243 | Critical | Critical | Implemented | 1.2 | 1.3 | 1.2 | No | Various | |||||||||||||||||||||||||||||||||||||||||||||||||||
IAM National | 51-60321295 | Green | Green | NA | 0.7 | 0.6 | 0.6 | NA | Various | |||||||||||||||||||||||||||||||||||||||||||||||||||
Midwest Operating Engineers | 36-6140097 | Green | Green | NA | 0.5 | 0.4 | 0.2 | NA | 2/28/14 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Local 1034** | 13-6594795 | Critical | Critical | Implemented | 0.2 | 0.2 | 0.2 | Yes | 5/2/13 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Operating Engineers Local 324 | 38-1900637 | Critical | Critical | Implemented | 0.1 | 0.1 | 0.1 | No | 6/30/13 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Western Pennsylvania Teamsters | 25-6029946 | Critical | Critical | Implemented | 0.1 | 0.1 | 0.1 | No | 11/4/2011* | |||||||||||||||||||||||||||||||||||||||||||||||||||
7 Other Plans | 0.6 | 0.6 | 0.5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Contributions | $ | 7.5 | $ | 7.2 | $ | 6.7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
* | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The parties are still attempting to negotiate a successor agreement. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
** | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The amount contributed by Hertz to the Local 1034 Pension Fund was reported as being more than 5% of total contributions to the plan, on the fund's Form 5500 for the year ended 12/31/2011. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
StockBased_Compensation_Tables1
Stock-Based Compensation (Tables) | 6 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | ||||||||||||||||||||||||||||
Stock-Based Compensation | |||||||||||||||||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity | A summary of option activity under the Stock Incentive Plan and the Omnibus Plan as of December 31, 2012 is presented below. | ||||||||||||||||||||||||||||
Options | Shares | Weighted‑ | Weighted‑ | Aggregate Intrinsic | |||||||||||||||||||||||||
Average | Average | Value (In thousands | |||||||||||||||||||||||||||
Exercise | Remaining | of dollars) | |||||||||||||||||||||||||||
Price | Contractual | ||||||||||||||||||||||||||||
Term (years) | |||||||||||||||||||||||||||||
Outstanding at January 1, 2012 | 15,142,061 | $ | 10.6 | 6.3 | $ | 41,110 | |||||||||||||||||||||||
Granted | 35,492 | 0.17 | |||||||||||||||||||||||||||
Exercised | (1,740,447 | ) | 5.75 | ||||||||||||||||||||||||||
Forfeited or Expired | (248,431 | ) | 14.66 | ||||||||||||||||||||||||||
Outstanding at December 31, 2012 | 13,188,675 | 11.13 | 5.4 | $ | 74,681 | ||||||||||||||||||||||||
Exercisable at December 31, 2012 | 10,321,945 | 10.83 | 4.7 | $ | 63,086 | ||||||||||||||||||||||||
Summary of the total compensation expense and associated recognized income tax benefits | A summary of the total compensation expense and associated income tax benefits recognized under our Hertz Global Holdings, Inc. Stock Incentive Plan and Hertz Global Holdings, Inc. Director Stock Incentive Plan, or the "Prior Plans," and the Omnibus Plan, including the cost of stock options, RSUs, and PSUs, is as follows (in millions of dollars): | A summary of the total compensation expense and associated income tax benefits recognized under the Prior Plans and the Omnibus Plan, including the cost of stock options, RSUs, and PSUs, is as follows (in millions of dollars): | |||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | Years Ended December 31, | |||||||||||||||||||||||||||
June 30, | June 30, | 2012 | 2011 | 2010 | |||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | Compensation expense | $ | 30.3 | $ | 31 | $ | 36.6 | |||||||||||||||||||
Compensation expense | $ | 11.7 | $ | 7.5 | $ | 19.7 | $ | 15 | |||||||||||||||||||||
Income tax benefit | (11.7 | ) | (12.0 | ) | (14.2 | ) | |||||||||||||||||||||||
Income tax benefit | (4.5 | ) | (2.9 | ) | (7.6 | ) | (5.8 | ) | Total | $ | 18.6 | $ | 19 | $ | 22.4 | ||||||||||||||
Total | $ | 7.2 | $ | 4.6 | $ | 12.1 | $ | 9.2 | |||||||||||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The risk-free interest rate is the implied zero-coupon yield for U.S. Treasury securities having a maturity approximately equal to the expected term, as of the grant dates. The assumed dividend yield is zero. | ||||||||||||||||||||||||||||
Assumption | 2012 Grants | 2011 Grants | 2010 Grants | ||||||||||||||||||||||||||
Expected volatility | 81.50% | 36.70% | 36.10% | ||||||||||||||||||||||||||
Expected dividend yield | —% | —% | —% | ||||||||||||||||||||||||||
Expected term (years) | 3 | 6.25 | 6.25 | ||||||||||||||||||||||||||
Risk-free interest rate | 0.40% | 2.56% | 1.62% - 2.96% | ||||||||||||||||||||||||||
Weighted-average grant date fair value | $14.62 | $5.93 | $4.00 | ||||||||||||||||||||||||||
Schedule of Share Based Compensation Nonvested Stock Options Activity | A summary of non-vested options as of December 31, 2012, and changes during the year, is presented below. | ||||||||||||||||||||||||||||
Non-vested | Weighted‑ | Weighted‑ | |||||||||||||||||||||||||||
Shares | Average | Average Grant- | |||||||||||||||||||||||||||
Exercise Price | Date Fair | ||||||||||||||||||||||||||||
Value | |||||||||||||||||||||||||||||
Non-vested as of January 1, 2012 | 4,915,825 | $ | 12.04 | $ | 4.86 | ||||||||||||||||||||||||
Granted | 35,492 | 0.17 | 0.17 | ||||||||||||||||||||||||||
Vested | (1,959,032 | ) | 11.56 | 4.59 | |||||||||||||||||||||||||
Forfeited | (125,555 | ) | 11.91 | 4.84 | |||||||||||||||||||||||||
Non-vested as of December 31, 2012 | 2,866,730 | $ | 12.23 | $ | 4.98 | ||||||||||||||||||||||||
Schedule of Share Based Payment Awards, Additional Stock Option Activity | Additional information pertaining to option activity under the plans is as follows (in millions of dollars): | ||||||||||||||||||||||||||||
Years ended | |||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||
2012 | 2011 | 2010 | |||||||||||||||||||||||||||
Aggregate intrinsic value of stock options exercised | $ | 15.1 | $ | 15 | $ | 8.1 | |||||||||||||||||||||||
Cash received from the exercise of stock options | 11.2 | 13.1 | 7.9 | ||||||||||||||||||||||||||
Fair value of options that vested | 9 | 17.4 | 21.6 | ||||||||||||||||||||||||||
Tax benefit realized on exercise of stock options | 0.9 | 0.5 | 0.3 | ||||||||||||||||||||||||||
Schedule of Share Based Compensation Restricted Stock Units and Performance Based Units Activity | A summary of RSU and PSU activity under the Omnibus Plan as of December 31, 2012 is presented below. | ||||||||||||||||||||||||||||
Shares | Weighted‑ | Aggregate Intrinsic | |||||||||||||||||||||||||||
Average | Value (In thousands | ||||||||||||||||||||||||||||
Fair Value | of dollars) | ||||||||||||||||||||||||||||
Outstanding at January 1, 2012 | 4,327,461 | $ | 6.46 | $ | 50,718 | ||||||||||||||||||||||||
Granted | 869,894 | 13.78 | — | ||||||||||||||||||||||||||
Vested | (3,198,219 | ) | 4.58 | — | |||||||||||||||||||||||||
Forfeited or Expired | (126,502 | ) | 13.19 | — | |||||||||||||||||||||||||
Outstanding at December 31, 2012 | 1,872,634 | $ | 12.62 | $ | 30,468 | ||||||||||||||||||||||||
Schedule of Share Based Compensation Restricted Stock Units and Performance Based Units Additional Information | Additional information pertaining to RSU and PSU activity is as follows: | ||||||||||||||||||||||||||||
Years ended December 31, | |||||||||||||||||||||||||||||
2012 | 2011 | 2010 | |||||||||||||||||||||||||||
Total fair value of awards that vested ($ millions) | $ | 14.6 | $ | 9.6 | $ | 8.2 | |||||||||||||||||||||||
Weighted average grant date fair value of awards | $ | 13.78 | $ | 14.78 | $ | 10.1 | |||||||||||||||||||||||
Schedule of Share Based Compensation, Performance Based Units, Activity | An additional 193,798 PSUs granted in March 2011 contained a market condition whereby the 20 trading day average trailing Hertz Holdings' stock price must equal or exceed a certain price target at any time during the five year performance period, in addition to a service vesting condition. A summary of the PSU activity for this grant is presented below. | ||||||||||||||||||||||||||||
Shares | Weighted‑ | Aggregate Intrinsic | |||||||||||||||||||||||||||
Average | Value (In thousands | ||||||||||||||||||||||||||||
Fair Value | of dollars) | ||||||||||||||||||||||||||||
Outstanding at January 1, 2012 | 677,971 | $ | 13.34 | $ | 7,946 | ||||||||||||||||||||||||
Granted | 1,846,014 | 11.89 | — | ||||||||||||||||||||||||||
Vested | (124,874 | ) | 14.6 | — | |||||||||||||||||||||||||
Forfeited or Expired | (100,438 | ) | 11.87 | — | |||||||||||||||||||||||||
Outstanding at December 31, 2012 | 2,298,673 | $ | 12.18 | $ | 37,399 | ||||||||||||||||||||||||
Depreciation_of_Revenue_Earnin5
Depreciation of Revenue Earning Equipment and Lease Charges (Tables) | 6 Months Ended | 12 Months Ended | ||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | |||||||||||||||||||
Depreciation of Revenue Earning Equipment and Lease Charges | ||||||||||||||||||||
Depreciation of revenue earning equipment and lease charges | Depreciation of revenue earning equipment and lease charges includes the following (in millions of dollars): | Depreciation of revenue earning equipment and lease charges includes the following (in millions of dollars): | ||||||||||||||||||
Three Months Ended | Years Ended December 31, | |||||||||||||||||||
June 30, | 2012 | 2011 | 2010 | |||||||||||||||||
2013 | 2012 | Depreciation of revenue earning equipment | $ | 2,165.20 | $ | 1,921.80 | $ | 1,747.00 | ||||||||||||
Depreciation of revenue earning equipment | $ | 611.8 | $ | 539.5 | ||||||||||||||||
Adjustment of depreciation upon disposal of revenue earning equipment | (96.8 | ) | (112.2 | ) | 42.9 | |||||||||||||||
Adjustment of depreciation upon disposal of revenue earning equipment | 11.3 | (41.2 | ) | |||||||||||||||||
Rents paid for vehicles leased | 79.8 | 96.1 | 78.2 | |||||||||||||||||
Rents paid for vehicles leased | 18 | 21.5 | ||||||||||||||||||
Total | $ | 2,148.20 | $ | 1,905.70 | $ | 1,868.10 | ||||||||||||||
Total | $ | 641.1 | $ | 519.8 | ||||||||||||||||
Six Months Ended | ||||||||||||||||||||
June 30, | ||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
Depreciation of revenue earning equipment | $ | 1,184.80 | $ | 1,070.90 | ||||||||||||||||
Adjustment of depreciation upon disposal of revenue earning equipment | 10 | (80.6 | ) | |||||||||||||||||
Rents paid for vehicles leased | 33.3 | 44.6 | ||||||||||||||||||
Total | $ | 1,228.10 | $ | 1,034.90 | ||||||||||||||||
Taxes_on_Income_Tables
Taxes on Income (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2012 | |||||||||||||
Taxes on Income | |||||||||||||
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 of dollars): | ||||||||||||
Years ended December 31, | |||||||||||||
2012 | 2011 | 2010 | |||||||||||
Domestic | $ | 407.7 | $ | 235.9 | $ | (81.2 | ) | ||||||
Foreign | 95.2 | 138 | 113.5 | ||||||||||
Total | $ | 502.9 | $ | 373.9 | $ | 32.3 | |||||||
Schedule of Components of Income Tax Expense (Benefit) | The total provision (benefit) for taxes on income consists of the following (in millions of dollars): | ||||||||||||
Years ended December 31, | |||||||||||||
2012 | 2011 | 2010 | |||||||||||
Current: | |||||||||||||
Federal | $ | 20.1 | $ | 10.3 | $ | 10.2 | |||||||
Foreign | 32.3 | 30.6 | 41.5 | ||||||||||
State and local | 39.1 | 28.5 | 1.5 | ||||||||||
Total current | 91.5 | 69.4 | 53.2 | ||||||||||
Deferred: | |||||||||||||
Federal | 141.9 | 82.4 | (18.6 | ) | |||||||||
Foreign | 11.9 | (3.2 | ) | 1.3 | |||||||||
State and local | (18.2 | ) | (4.8 | ) | (2.6 | ) | |||||||
Total deferred | 135.6 | 74.4 | (19.9 | ) | |||||||||
Total provision (benefit) | $ | 227.1 | $ | 143.8 | $ | 33.3 | |||||||
Schedule of Deferred Tax Assets and Liabilities | The principal items of the U.S. and foreign net deferred tax assets and liabilities at December 31, 2012 and 2011 are as follows (in millions of dollars): | ||||||||||||
2012 | 2011 | ||||||||||||
Deferred Tax Assets: | |||||||||||||
Employee benefit plans | $ | 103.6 | $ | 102.8 | |||||||||
Net operating loss carryforwards | 1,610.90 | 1,743.50 | |||||||||||
Foreign tax credit carryforwards | 20.8 | 20.8 | |||||||||||
Federal, state and foreign local tax credit carryforwards | 26.8 | 15 | |||||||||||
Accrued and prepaid expenses | 341.7 | 327.4 | |||||||||||
Total Deferred Tax Assets | 2,103.80 | 2,209.50 | |||||||||||
Less: Valuation Allowance | (226.4 | ) | (186.7 | ) | |||||||||
Total Net Deferred Tax Assets | 1,877.40 | 2,022.80 | |||||||||||
Deferred Tax Liabilities: | |||||||||||||
Depreciation on tangible assets | (3,081.4 | ) | (2,742.3 | ) | |||||||||
Intangible assets | (1,477.1 | ) | (942.4 | ) | |||||||||
Total Deferred Tax Liabilities | (4,558.5 | ) | (3,684.7 | ) | |||||||||
Net Deferred Tax Liability | $ | (2,681.1 | ) | $ | (1,661.9 | ) | |||||||
Schedule of Effective Income Tax Rate Reconciliation | The significant items in the reconciliation of the statutory and effective income tax rates consisted of the following: | ||||||||||||
Years ended December 31, | |||||||||||||
2012 | 2011 | 2010 | |||||||||||
Statutory Federal Tax Rate | 35 | % | 35 | % | 35 | % | |||||||
Foreign tax differential | (3.2 | ) | (3.3 | ) | (32.1 | ) | |||||||
State and local income taxes, net of federal income tax benefit | 2.9 | 3.2 | (5.2 | ) | |||||||||
Change in state statutory rates, net of federal income tax benefit | (1.0 | ) | 0.5 | 5.1 | |||||||||
Federal and foreign permanent differences | 2.3 | (1.1 | ) | (24.0 | ) | ||||||||
Withholding taxes | 1.7 | 2 | 26.2 | ||||||||||
Uncertain tax positions | (0.6 | ) | (0.8 | ) | 11.2 | ||||||||
Change in valuation allowance | 7.9 | 0.6 | 85.1 | ||||||||||
All other items, net | 0.2 | 2.4 | 1.8 | ||||||||||
Effective Tax Rate | 45.2 | % | 38.5 | % | 103.1 | % | |||||||
Schedule of Unrecognized Tax Benefits Roll Forward | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in millions of dollars): | ||||||||||||
2012 | 2011 | 2010 | |||||||||||
Balance at January 1 | $ | 21.6 | $ | 27.2 | $ | 25.6 | |||||||
Increase (decrease) attributable to tax positions taken during prior periods | (6.8 | ) | (9.5 | ) | 0.3 | ||||||||
Increase attributable to tax positions taken during the current year | 2.4 | 3.9 | 1.3 | ||||||||||
Decrease attributable to settlements with taxing authorities | — | — | — | ||||||||||
Balance at December 31 | $ | 17.2 | $ | 21.6 | $ | 27.2 | |||||||
Lease_and_Concession_Agreement1
Lease and Concession Agreements (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2012 | ||||||||||||
Lease and Concession Agreements | ||||||||||||
Schedule of lease expenses | In addition to the above, we have various leases on revenue earning equipment and office and computer equipment under which the following amounts were expensed (in millions of dollars): | |||||||||||
Years ended December 31, | ||||||||||||
2012 | 2011 | 2010 | ||||||||||
Revenue earning equipment | $ | 79.8 | $ | 96.1 | $ | 78.2 | ||||||
Office and computer equipment | 12.2 | 10.1 | 10.4 | |||||||||
Total | $ | 92 | $ | 106.2 | $ | 88.6 | ||||||
We have various concession agreements, which provide for payment of rents and a percentage of revenue with a guaranteed minimum, and real estate leases under which the following amounts were expensed (in millions of dollars): | ||||||||||||
Years ended December 31, | ||||||||||||
2012 | 2011 | 2010 | ||||||||||
Rents | $ | 135.9 | $ | 130.6 | $ | 133.9 | ||||||
Concession fees: | ||||||||||||
Minimum fixed obligations | 249.6 | 248.7 | 252 | |||||||||
Additional amounts, based on revenues | 329.4 | 311.8 | 278.7 | |||||||||
Total | $ | 714.9 | $ | 691.1 | $ | 664.6 | ||||||
Schedule of minimum obligations under existing agreements | As of December 31, 2012, minimum obligations under existing agreements referred to above are approximately as follows (in millions of dollars): | |||||||||||
Rents | Concessions | |||||||||||
2013 | $ | 157.3 | $ | 390.3 | ||||||||
2014 | 128.7 | 279.4 | ||||||||||
2015 | 99.3 | 192.8 | ||||||||||
2016 | 74.7 | 141.4 | ||||||||||
2017 | 50.4 | 91.3 | ||||||||||
Years after 2017 | 194.1 | 509.7 | ||||||||||
As of December 31, 2012, minimum obligations under existing agreements referred to above that have a maturity of more than one year are as follows (in millions of dollars): | ||||||||||||
2013 | $ | 56.6 | ||||||||||
2014 | $ | 25.2 | ||||||||||
2015 | $ | 6.7 | ||||||||||
2016 | $ | 2.1 | ||||||||||
2017 | $ | — | ||||||||||
After 2017 | $ | — | ||||||||||
Segment_Information_Tables1
Segment Information (Tables) | 6 Months Ended | 12 Months Ended | |||||||||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | ||||||||||||||||||||||||||
Segment Information | |||||||||||||||||||||||||||
Summary of contribution of reportable segments to revenues and adjusted pre-tax income (loss) and the reconciliation to consolidated amounts | The contribution of our reportable segments to revenues and adjusted pre-tax income and the reconciliation to consolidated amounts are summarized below (in millions of dollars). | The contribution of our reportable segments for the years ended December 31, 2012, 2011 and 2010 is summarized below (in millions of dollars). | |||||||||||||||||||||||||
Three Months Ended June 30, | Years ended December 31, | ||||||||||||||||||||||||||
Revenues | Adjusted Pre-Tax Income | 2012 | 2011 | 2010 | |||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | Revenues | |||||||||||||||||||||||
Car rental | $ | 2,329.50 | $ | 1,889.60 | $ | 363 | $ | 277.4 | Car rental | $ | 7,633.00 | $ | 7,083.50 | $ | 6,486.20 | ||||||||||||
Equipment rental | 1,385.40 | 1,209.50 | 1,070.10 | ||||||||||||||||||||||||
Equipment rental | 384.3 | 335 | 74.1 | 42.5 | Other reconciling items | 2.4 | 5.4 | 6.2 | |||||||||||||||||||
Total reportable segments | 2,713.80 | 2,224.60 | 437.1 | 319.9 | Total | $ | 9,020.80 | $ | 8,298.40 | $ | 7,562.50 | ||||||||||||||||
Other | 0.8 | 0.5 | Adjusted pre-tax income(a) | ||||||||||||||||||||||||
Car rental | $ | 1,020.10 | $ | 850.2 | $ | 641.9 | |||||||||||||||||||||
Total | $ | 2,714.60 | $ | 2,225.10 | Equipment rental | $ | 227 | $ | 161.6 | $ | 78 | ||||||||||||||||
Depreciation of revenue earning equipment and lease charges | |||||||||||||||||||||||||||
Adjustments: | Car rental | $ | 1,876.10 | $ | 1,651.40 | $ | 1,594.60 | ||||||||||||||||||||
Other reconciling items(1) | (116.2 | ) | (79.8 | ) | Equipment rental | 272.1 | 254.3 | 273.5 | |||||||||||||||||||
Purchase accounting(2) | (33.1 | ) | (29.0 | ) | Total | $ | 2,148.20 | $ | 1,905.70 | $ | 1,868.10 | ||||||||||||||||
Non-cash debt charges(3) | (12.1 | ) | (13.9 | ) | Depreciation of property and equipment | ||||||||||||||||||||||
Car rental | $ | 126.9 | $ | 116.1 | $ | 112.3 | |||||||||||||||||||||
Restructuring charges | (17.6 | ) | (16.1 | ) | Equipment rental | 34.1 | 33.7 | 34.3 | |||||||||||||||||||
Other reconciling items | 11.6 | 8.2 | 7.4 | ||||||||||||||||||||||||
Restructuring related charges(4) | (8.6 | ) | (5.0 | ) | |||||||||||||||||||||||
Total | $ | 172.6 | $ | 158 | $ | 154 | |||||||||||||||||||||
Integration expenses(5) | (9.2 | ) | — | ||||||||||||||||||||||||
Amortization of other intangible assets | |||||||||||||||||||||||||||
Derivative gains (losses)(6) | (0.1 | ) | — | Car rental | $ | 41.7 | $ | 32.7 | $ | 30.2 | |||||||||||||||||
Equipment rental | 40.6 | 35.8 | 33.4 | ||||||||||||||||||||||||
Acquisition related costs | (9.1 | ) | (4.5 | ) | Other reconciling items | 1.8 | 1.5 | 1.1 | |||||||||||||||||||
Other(7) | (5.4 | ) | — | Total | $ | 84.1 | $ | 70 | $ | 64.7 | |||||||||||||||||
Income before income taxes | $ | 225.7 | $ | 171.6 | Interest expense | ||||||||||||||||||||||
Car rental | $ | 316.3 | $ | 333.1 | $ | 401.3 | |||||||||||||||||||||
Equipment rental | 52 | 45.3 | 39.4 | ||||||||||||||||||||||||
Other reconciling items | 229.5 | 271.9 | 285.8 | ||||||||||||||||||||||||
Six Months Ended June 30, | Total | $ | 597.8 | $ | 650.3 | $ | 726.5 | ||||||||||||||||||||
Revenues | Adjusted Pre-Tax Income | ||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||
Car rental | $ | 4,414.30 | $ | 3,547.90 | $ | 571.4 | $ | 369 | |||||||||||||||||||
Equipment rental | 735.4 | 637.1 | 119.9 | 68.4 | |||||||||||||||||||||||
Total reportable segments | 5,149.70 | 4,185.00 | 691.3 | 437.4 | Years ended December 31, | ||||||||||||||||||||||
2012 | 2011 | 2010 | |||||||||||||||||||||||||
Other | 1.5 | 1.1 | Revenue earning equipment and property and equipment | ||||||||||||||||||||||||
Car rental | |||||||||||||||||||||||||||
Total | $ | 5,151.20 | $ | 4,186.10 | Expenditures | $ | 9,118.30 | $ | 9,109.90 | $ | 8,430.10 | ||||||||||||||||
Proceeds from disposals | (7,054.4 | ) | (7,689.4 | ) | (7,432.7 | ) | |||||||||||||||||||||
Adjustments: | |||||||||||||||||||||||||||
Other reconciling items(1) | (219.5 | ) | (161.7 | ) | Net expenditures | $ | 2,063.90 | $ | 1,420.50 | $ | 997.4 | ||||||||||||||||
Purchase accounting(2) | (66.8 | ) | (53.0 | ) | Equipment rental | ||||||||||||||||||||||
Expenditures | $ | 787.6 | $ | 617.5 | $ | 186.1 | |||||||||||||||||||||
Non-cash debt charges(3) | (22.1 | ) | (32.6 | ) | Proceeds from disposals | (192.3 | ) | (213.8 | ) | (124.3 | ) | ||||||||||||||||
Restructuring charges | (21.3 | ) | (22.8 | ) | Net expenditures (proceeds) | $ | 595.3 | $ | 403.7 | $ | 61.8 | ||||||||||||||||
Restructuring related charges(4) | (12.8 | ) | (8.3 | ) | Other reconciling items | ||||||||||||||||||||||
Expenditures | $ | 20.1 | $ | 8.6 | $ | 3.9 | |||||||||||||||||||||
Integration expenses(5) | (20.0 | ) | — | Proceeds from disposals | (16.1 | ) | (1.0 | ) | (0.3 | ) | |||||||||||||||||
Acquisition related costs | (11.7 | ) | (11.4 | ) | Net expenditures | $ | 4 | $ | 7.6 | $ | 3.6 | ||||||||||||||||
Other(7) | (5.4 | ) | — | ||||||||||||||||||||||||
Income before income taxes | $ | 311.7 | $ | 147.6 | |||||||||||||||||||||||
_______________________________________________________________________________ | |||||||||||||||||||||||||||
As of December 31, | |||||||||||||||||||||||||||
-1 | Represents general corporate expenses, certain interest expense (including net interest on corporate debt), as well as other business activities. | 2012 | 2011 | ||||||||||||||||||||||||
Total assets at end of year | |||||||||||||||||||||||||||
-2 | Represents the purchase accounting effects of the 2005 sale of all of Hertz's stock on our results of operations relating to increased depreciation and amortization of tangible and intangible assets and accretion of revalued workers' compensation and public liability and property damage liabilities. Also represents the purchase accounting effects of certain subsequent acquisitions on our results of operations relating to increased depreciation and amortization of tangible and intangible assets. | Car rental | $ | 18,454.20 | $ | 13,037.90 | |||||||||||||||||||||
Equipment rental | 3,623.00 | 3,058.90 | |||||||||||||||||||||||||
-3 | Represents non-cash debt charges relating to the amortization and write-off of deferred debt financing costs and debt discounts. | Other reconciling items | 1,213.00 | 1,570.50 | |||||||||||||||||||||||
-4 | Represents incremental costs incurred directly supporting our business transformation initiatives. Such costs include transition costs incurred in connection with our business process outsourcing arrangements and incremental costs incurred to facilitate business process re-engineering initiatives that involve significant organization redesign and extensive operational process changes. | Total | $ | 23,290.20 | $ | 17,667.30 | |||||||||||||||||||||
-5 | Primarily represents Dollar Thrifty related expenses and adjustments. | Revenue earning equipment, net, at end of year | |||||||||||||||||||||||||
Car rental | $ | 10,710.10 | $ | 8,318.70 | |||||||||||||||||||||||
-6 | Represents the mark-to-market adjustment on our interest rate caps. | Equipment rental | 2,198.20 | 1,786.70 | |||||||||||||||||||||||
-7 | Primarily represents expenses related to litigation accruals. | Total | $ | 12,908.30 | $ | 10,105.40 | |||||||||||||||||||||
Property and equipment, net, at end of year | |||||||||||||||||||||||||||
Car rental | $ | 1,111.30 | $ | 971.3 | |||||||||||||||||||||||
Equipment rental | 235.9 | 203.7 | |||||||||||||||||||||||||
Other reconciling items | 89.2 | 76.9 | |||||||||||||||||||||||||
Total | $ | 1,436.40 | $ | 1,251.90 | |||||||||||||||||||||||
We operate in the United States and in international countries. International operations are substantially in Europe. The operations within major geographic areas are summarized below (in millions of dollars): | |||||||||||||||||||||||||||
Years ended December 31, | |||||||||||||||||||||||||||
2012 | 2011 | 2010 | |||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||
United States | $ | 6,313.40 | $ | 5,413.30 | $ | 4,993.70 | |||||||||||||||||||||
International | 2,707.40 | 2,885.10 | 2,568.80 | ||||||||||||||||||||||||
Total | $ | 9,020.80 | $ | 8,298.40 | $ | 7,562.50 | |||||||||||||||||||||
As of December 31, | |||||||||||||||||||||||||||
2012 | 2011 | ||||||||||||||||||||||||||
Total assets at end of year | |||||||||||||||||||||||||||
United States | $ | 18,140.90 | $ | 12,724.40 | |||||||||||||||||||||||
International | 5,149.30 | 4,942.90 | |||||||||||||||||||||||||
Total | $ | 23,290.20 | $ | 17,667.30 | |||||||||||||||||||||||
Revenue earning equipment, net, at end of year | |||||||||||||||||||||||||||
United States | $ | 10,221.30 | $ | 7,621.20 | |||||||||||||||||||||||
International | 2,687.00 | 2,484.20 | |||||||||||||||||||||||||
Total | $ | 12,908.30 | $ | 10,105.40 | |||||||||||||||||||||||
Property and equipment, net, at end of year | |||||||||||||||||||||||||||
United States | $ | 1,226.10 | $ | 1,036.70 | |||||||||||||||||||||||
International | 210.3 | 215.2 | |||||||||||||||||||||||||
Total | $ | 1,436.40 | $ | 1,251.90 | |||||||||||||||||||||||
(a) | |||||||||||||||||||||||||||
The following table reconciles adjusted pre-tax income to income (loss) before income taxes for the years ended December 31, 2012, 2011 and 2010 (in millions of dollars): | |||||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||||
2012 | 2011 | 2010 | |||||||||||||||||||||||||
Adjusted pre-tax income | |||||||||||||||||||||||||||
Car rental | $ | 1,020.10 | $ | 850.2 | $ | 641.9 | |||||||||||||||||||||
Equipment rental | 227 | 161.6 | 78 | ||||||||||||||||||||||||
Total reportable segments | 1,247.10 | 1,011.80 | 719.9 | ||||||||||||||||||||||||
Adjustments: | |||||||||||||||||||||||||||
Other reconciling items(1) | (320.5 | ) | (306.2 | ) | (347.9 | ) | |||||||||||||||||||||
Purchase accounting(2) | (109.6 | ) | (87.6 | ) | (90.3 | ) | |||||||||||||||||||||
Non-cash debt charges(3) | (56.4 | ) | (105.9 | ) | (160.6 | ) | |||||||||||||||||||||
Restructuring charges | (38.0 | ) | (56.4 | ) | (54.7 | ) | |||||||||||||||||||||
Restructuring related charges(4) | (11.1 | ) | (9.8 | ) | (13.2 | ) | |||||||||||||||||||||
Derivative gains (losses)(5) | (0.9 | ) | 0.1 | (3.2 | ) | ||||||||||||||||||||||
Acquisition related costs and charges(6) | (163.7 | ) | (18.8 | ) | (17.7 | ) | |||||||||||||||||||||
Management transition costs | — | (4.0 | ) | — | |||||||||||||||||||||||
Pension adjustment(7) | — | 13.1 | — | ||||||||||||||||||||||||
Premiums paid on debt(8) | — | (62.4 | ) | — | |||||||||||||||||||||||
Other(9) | (44.0 | ) | — | — | |||||||||||||||||||||||
Income before income taxes | $ | 502.9 | $ | 373.9 | $ | 32.3 | |||||||||||||||||||||
-1 | |||||||||||||||||||||||||||
Represents general corporate expenses, certain interest expense (including net interest on corporate debt), as well as other business activities. | |||||||||||||||||||||||||||
-2 | |||||||||||||||||||||||||||
Represents the increase in amortization of other intangible assets, depreciation of property and equipment and accretion of revalued liabilities relating to purchase accounting. | |||||||||||||||||||||||||||
-3 | |||||||||||||||||||||||||||
Represents non-cash debt charges relating to the amortization and write-off of deferred debt financing costs and debt discounts. | |||||||||||||||||||||||||||
-4 | |||||||||||||||||||||||||||
Represents incremental costs incurred directly supporting our business transformation initiatives. Such costs include transition costs incurred in connection with our business process outsourcing arrangements and incremental costs incurred to facilitate business process re-engineering initiatives that involve significant organization redesign and extensive operational process changes. | |||||||||||||||||||||||||||
-5 | |||||||||||||||||||||||||||
Represents the mark-to-market adjustment on our interest rate cap. | |||||||||||||||||||||||||||
-6 | |||||||||||||||||||||||||||
Primarily represents Dollar Thrifty acquisition related expenses, change in control expenses, 'Day-1' compensation expenses and other adjustments related to the Dollar Thrifty acquisition, loss on the Advantage divestiture, expenses related to additional required divestitures and costs associated with the Dollar Thrifty acquisition, pre-acquisition interest and commitment fee expenses for interim financing associated with the Dollar Thrifty acquisition and a gain on the investment in Dollar Thrifty stock. | |||||||||||||||||||||||||||
-7 | |||||||||||||||||||||||||||
Represents a gain for the U.K. pension plan relating to unamortized prior service cost from a 2010 amendment that eliminated discretionary pension increases related to pre-1997 service primarily pertaining to inactive employees. | |||||||||||||||||||||||||||
-8 | |||||||||||||||||||||||||||
Represents premiums paid to redeem our 10.5% Senior Subordinated Notes and a portion of our 8.875% Senior Notes. | |||||||||||||||||||||||||||
-9 | |||||||||||||||||||||||||||
Primarily represents expenses related to the withdrawal from a multiemployer pension plan, litigation accrual and expenses associated with the impact of Hurricane Sandy. | |||||||||||||||||||||||||||
Restructuring_Tables1
Restructuring (Tables) | 6 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | ||||||||||||||||||||||||||||||||||||
Restructuring | |||||||||||||||||||||||||||||||||||||
Summary of restructuring charges in consolidated statement of operations | Restructuring charges in our consolidated statement of operations can be summarized as follows (in millions of dollars). | Restructuring charges in our consolidated statement of operations can be summarized as follows (in millions of dollars): | |||||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | Years Ended December 31, | |||||||||||||||||||||||||||||||||||
June 30, | June 30, | 2012 | 2011 | 2010 | |||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | By Type: | |||||||||||||||||||||||||||||||||
By Type: | Termination benefits | $ | 26.2 | $ | 14.4 | $ | 12.2 | ||||||||||||||||||||||||||||||
Termination benefits | $ | 15.2 | $ | 13.5 | $ | 17.4 | $ | 16.2 | |||||||||||||||||||||||||||||
Pension and post retirement expense | 1 | 0.4 | 0.4 | ||||||||||||||||||||||||||||||||||
Consultant costs | 0.5 | 0.4 | 0.8 | 0.6 | |||||||||||||||||||||||||||||||||
Consultant costs | 1.2 | 1.3 | 1.1 | ||||||||||||||||||||||||||||||||||
Facility closure and lease obligation costs | 1.9 | 2.2 | 3.1 | 6 | |||||||||||||||||||||||||||||||||
Asset writedowns | — | 23.2 | 20.4 | ||||||||||||||||||||||||||||||||||
Total | $ | 17.6 | $ | 16.1 | $ | 21.3 | $ | 22.8 | |||||||||||||||||||||||||||||
Facility closure and lease obligation costs | 8.9 | 16.5 | 14.3 | ||||||||||||||||||||||||||||||||||
Relocation costs and temporary labor costs | 0.4 | 0.6 | 5 | ||||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||||
June 30, | June 30, | Other | 0.3 | — | 1.3 | ||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||
By Caption: | Total | $ | 38 | $ | 56.4 | $ | 54.7 | ||||||||||||||||||||||||||||||
Direct operating | $ | 6.8 | $ | 7 | $ | 8.3 | $ | 11.9 | |||||||||||||||||||||||||||||
Selling, general and administrative | 10.8 | 9.1 | 13 | 10.9 | |||||||||||||||||||||||||||||||||
Total | $ | 17.6 | $ | 16.1 | $ | 21.3 | $ | 22.8 | Years Ended December 31, | ||||||||||||||||||||||||||||
2012 | 2011 | 2010 | |||||||||||||||||||||||||||||||||||
By Caption: | |||||||||||||||||||||||||||||||||||||
Direct operating | $ | 22.6 | $ | 46.6 | $ | 43.5 | |||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||||
June 30, | June 30, | Selling, general and administrative | 15.4 | 9.8 | 11.2 | ||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||
By Segment: | Total | $ | 38 | $ | 56.4 | $ | 54.7 | ||||||||||||||||||||||||||||||
Car rental | $ | 15.8 | $ | 11.8 | $ | 18.9 | $ | 15.3 | |||||||||||||||||||||||||||||
Equipment rental | 0.8 | 2.6 | 1.3 | 5.8 | |||||||||||||||||||||||||||||||||
Other reconciling items | 1 | 1.7 | 1.1 | 1.7 | Years Ended December 31, | ||||||||||||||||||||||||||||||||
2012 | 2011 | 2010 | |||||||||||||||||||||||||||||||||||
Total | $ | 17.6 | $ | 16.1 | $ | 21.3 | $ | 22.8 | By Segment: | ||||||||||||||||||||||||||||
Car rental | $ | 26.4 | $ | 16.6 | $ | 18.1 | |||||||||||||||||||||||||||||||
Equipment rental | 8.8 | 40.5 | 34.7 | ||||||||||||||||||||||||||||||||||
Other reconciling items | 2.8 | (0.7 | ) | 1.9 | |||||||||||||||||||||||||||||||||
Total | $ | 38 | $ | 56.4 | $ | 54.7 | |||||||||||||||||||||||||||||||
Schedule of activity affecting the restructuring accrual | The following table sets forth the activity affecting the restructuring accrual during the three months ended June 30, 2013 (in millions of dollars). We expect 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. | The following table sets forth the activity affecting the restructuring accrual during the year ended December 31, 2012 (in millions of dollars). We expect to pay the remaining restructuring obligations relating to termination benefits over the next twelve 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 | Pension | Consultant | Other | Total | Termination | Pension | Consultant | Other | Total | ||||||||||||||||||||||||||||
Benefits | and Post-retirement | Costs | Benefits | and Post | Costs | ||||||||||||||||||||||||||||||||
Expense | Retirement | ||||||||||||||||||||||||||||||||||||
Balance as of January 1, 2013 | $ | 12.4 | $ | 0.2 | $ | 0.3 | $ | 8.1 | $ | 21 | Expense | ||||||||||||||||||||||||||
Balance as of January 1, 2011 | $ | 6.3 | $ | 0.2 | $ | 0.1 | $ | 10.9 | $ | 17.5 | |||||||||||||||||||||||||||
Charges incurred | 17.4 | — | 0.8 | 3.1 | 21.3 | Charges incurred | 14.4 | 0.4 | 1.3 | 40.3 | 56.4 | ||||||||||||||||||||||||||
Cash payments | (15.5 | ) | — | (0.6 | ) | (2.3 | ) | (18.4 | ) | ||||||||||||||||||||||||||||
Cash payments | (17.4 | ) | (0.2 | ) | (0.9 | ) | (1.5 | ) | (20.0 | ) | Other(1) | 3.9 | (0.4 | ) | (0.2 | ) | (37.2 | ) | (33.9 | ) | |||||||||||||||||
Other(1) | (0.3 | ) | — | — | (3.2 | ) | (3.5 | ) | |||||||||||||||||||||||||||||
Balance as of December 31, 2011 | $ | 9.1 | $ | 0.2 | $ | 0.6 | $ | 11.7 | $ | 21.6 | |||||||||||||||||||||||||||
Balance as of June 30, 2013 | $ | 12.1 | $ | — | $ | 0.2 | $ | 6.5 | $ | 18.8 | Charges incurred | 26.2 | 1 | 1.2 | 9.6 | 38 | |||||||||||||||||||||
Cash payments | (22.6 | ) | — | (0.9 | ) | (3.3 | ) | (26.8 | ) | ||||||||||||||||||||||||||||
_______________________________________________________________________________ | Other(2) | (0.3 | ) | (1.0 | ) | (0.6 | ) | (9.9 | ) | (11.8 | ) | ||||||||||||||||||||||||||
(1)Primarily consists of $3.2 million for facility closures and $0.3 million for foreign currency translation. | |||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2012 | $ | 12.4 | $ | 0.2 | $ | 0.3 | $ | 8.1 | $ | 21 | |||||||||||||||||||||||||||
-1 | |||||||||||||||||||||||||||||||||||||
Consists of decreases of $23.2 million for asset writedowns, $13.9 million for facility closures, $0.4 million in ASC 715 pension adjustment and $0.2 million of consultant costs, partly offset by a $3.8 million increase for involuntary benefits. | |||||||||||||||||||||||||||||||||||||
-2 | |||||||||||||||||||||||||||||||||||||
Primarily consists of decreases of $10.3 million for facility closures and $1.0 million in ASC 715 pension adjustment. | |||||||||||||||||||||||||||||||||||||
Financial_Instruments_Tables1
Financial Instruments (Tables) | 6 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | ||||||||||||||||||||||||||||||||
Financial Instruments | |||||||||||||||||||||||||||||||||
Summary of financial assets and liabilities measured at fair value on a recurring basis | The following table summarizes the estimated fair value of derivatives (in millions of dollars): | The following table summarizes the estimated fair value of derivatives (in millions of dollars): | |||||||||||||||||||||||||||||||
Fair Value of Derivative Instruments(1) | Fair Value of Derivative Instruments(1) | ||||||||||||||||||||||||||||||||
Asset Derivatives(2) | Liability Derivatives(2) | Asset Derivatives(2) | Liability Derivatives(2) | ||||||||||||||||||||||||||||||
June 30, | December 31, | June 30, | December 31, | December 31, | December 31, | December 31, | December 31, | ||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2012 | 2011 | 2012 | 2011 | ||||||||||||||||||||||||||
Derivatives not designated as hedging | Derivatives not designated as hedging | ||||||||||||||||||||||||||||||||
instruments under ASC 815: | instruments under ASC 815: | ||||||||||||||||||||||||||||||||
Gasoline swaps | $ | — | $ | — | $ | 0.9 | $ | 0.1 | Gasoline swaps | $ | — | $ | — | $ | 0.1 | $ | 0.4 | ||||||||||||||||
Interest rate caps | 0.6 | 0.9 | 0.6 | 0.9 | Interest rate caps | 0.9 | 0.5 | 0.9 | 0.4 | ||||||||||||||||||||||||
Foreign exchange forward contracts | 4.8 | 3.4 | 1.9 | 4.5 | Foreign exchange forward contracts | 3.4 | 4.4 | 4.5 | 1.9 | ||||||||||||||||||||||||
Foreign exchange options | 0.1 | 0.2 | — | — | Interest rate swaps | — | — | — | 0.2 | ||||||||||||||||||||||||
Total derivatives not designated as hedging | Foreign exchange options | 0.2 | 0.1 | — | — | ||||||||||||||||||||||||||||
instruments under ASC 815 | $ | 5.5 | $ | 4.5 | $ | 3.4 | $ | 5.5 | |||||||||||||||||||||||||
Total derivatives not designated as hedging | |||||||||||||||||||||||||||||||||
_______________________________________________________________________________ | instruments under ASC 815 | $ | 4.5 | $ | 5 | $ | 5.5 | $ | 2.9 | ||||||||||||||||||||||||
-1 | All fair value measurements were primarily based upon significant observable (Level 2) inputs. | _______________________________________________________________________________ | |||||||||||||||||||||||||||||||
-2 | All asset derivatives are recorded in "Prepaid expenses and other assets" and all liability derivatives are recorded in "Accrued liabilities" on our condensed consolidated balance sheets. | -1 | All fair value measurements were primarily based upon significant observable (Level 2) inputs. | ||||||||||||||||||||||||||||||
-2 | All asset derivatives are recorded in "Prepaid expenses and other assets" and all liability derivatives are recorded in "Other accrued liabilities" on our consolidated balance sheets. | ||||||||||||||||||||||||||||||||
Schedule of gain (loss) on derivative instruments not designated as hedges recognized in income | The following table summarizes the gains and (losses) of derivatives (in millions of dollars): | Assets and liabilities measured at fair value on a recurring basis as of December 31, 2012 and 2011 were as follows (in millions): | |||||||||||||||||||||||||||||||
Location of Gain or (Loss) | Amount of Gain or | 31-Dec-12 | |||||||||||||||||||||||||||||||
Recognized on Derivatives | (Loss) Recognized in | Fair Value Measurements Using | |||||||||||||||||||||||||||||||
Income on Derivatives | Total | Quoted Prices in Active Markets | Significant | Significant | |||||||||||||||||||||||||||||
Three Months Ended | for Identical | Other | Unobservable | ||||||||||||||||||||||||||||||
June 30, | Instruments | Observable | Inputs | ||||||||||||||||||||||||||||||
2013 | 2012 | (Level 1) | Inputs | (Level 3) | |||||||||||||||||||||||||||||
Derivatives not designated as hedging | (Level 2) | ||||||||||||||||||||||||||||||||
instruments under ASC 815: | Prepaid Expenses and Other Current Assets: | ||||||||||||||||||||||||||||||||
Gasoline swaps | Direct operating | $ | (2.5 | ) | $ | (3.3 | ) | Interest rate caps | $ | 0.9 | $ | — | $ | 0.9 | $ | — | |||||||||||||||||
Interest rate caps | Selling, general and administrative | — | (0.1 | ) | |||||||||||||||||||||||||||||
Foreign currency forward contracts | 3.4 | — | 3.4 | — | |||||||||||||||||||||||||||||
Foreign exchange forward contracts | Selling, general and administrative | (7.1 | ) | (7.7 | ) | ||||||||||||||||||||||||||||
Foreign exchange options | Selling, general and administrative | — | 0.1 | Foreign exchange options | 0.2 | — | 0.2 | — | |||||||||||||||||||||||||
Total | $ | (9.6 | ) | $ | (11.0 | ) | Total | $ | 4.5 | $ | — | $ | 4.5 | $ | — | ||||||||||||||||||
Location of Gain or (Loss) | Amount of Gain or | Other Current Liabilities: | |||||||||||||||||||||||||||||||
Recognized on Derivatives | (Loss) Recognized in | Gasoline swaps | $ | 0.1 | $ | — | $ | 0.1 | $ | — | |||||||||||||||||||||||
Income on Derivatives | |||||||||||||||||||||||||||||||||
Six Months Ended | Interest rate caps | 0.9 | — | 0.9 | — | ||||||||||||||||||||||||||||
June 30, | |||||||||||||||||||||||||||||||||
2013 | 2012 | Foreign currency forward contracts | 4.5 | — | 4.5 | — | |||||||||||||||||||||||||||
Derivatives not designated as hedging | |||||||||||||||||||||||||||||||||
instruments under ASC 815: | Total | $ | 5.5 | $ | — | $ | 5.5 | $ | — | ||||||||||||||||||||||||
Gasoline swaps | Direct operating | $ | (0.8 | ) | $ | (1.5 | ) | ||||||||||||||||||||||||||
Interest rate caps | Selling, general and administrative | 0.1 | (0.1 | ) | |||||||||||||||||||||||||||||
Foreign exchange forward contracts | Selling, general and administrative | (2.9 | ) | (5.6 | ) | 31-Dec-11 | |||||||||||||||||||||||||||
Foreign exchange options | Selling, general and administrative | (0.1 | ) | 0.1 | Fair Value Measurements Using | ||||||||||||||||||||||||||||
Total | Quoted Prices in Active Markets | Significant | Significant | ||||||||||||||||||||||||||||||
Total | $ | (3.7 | ) | $ | (7.1 | ) | for Identical | Other | Unobservable | ||||||||||||||||||||||||
Instruments | Observable | Inputs | |||||||||||||||||||||||||||||||
(Level 1) | Inputs | (Level 3) | |||||||||||||||||||||||||||||||
(Level 2) | |||||||||||||||||||||||||||||||||
Prepaid Expenses and Other Current Assets: | |||||||||||||||||||||||||||||||||
Interest rate caps | $ | 0.5 | $ | — | $ | 0.5 | $ | — | |||||||||||||||||||||||||
Foreign currency forward contracts | 4.4 | — | 4.4 | — | |||||||||||||||||||||||||||||
Foreign exchange options | 0.1 | — | 0.1 | — | |||||||||||||||||||||||||||||
Investment | 33.2 | 33.2 | — | — | |||||||||||||||||||||||||||||
Total | $ | 38.2 | $ | 33.2 | $ | 5 | $ | — | |||||||||||||||||||||||||
Other Current Liabilities: | |||||||||||||||||||||||||||||||||
Gasoline swaps | $ | 0.4 | $ | — | $ | 0.4 | $ | — | |||||||||||||||||||||||||
Interest rate caps | 0.4 | — | 0.4 | — | |||||||||||||||||||||||||||||
Foreign currency forward contracts | 1.9 | — | 1.9 | — | |||||||||||||||||||||||||||||
Interest rate swaps | 0.2 | 0.2 | |||||||||||||||||||||||||||||||
Total | $ | 2.9 | $ | — | $ | 2.9 | $ | — | |||||||||||||||||||||||||
The following table summarizes the (gains) and losses of derivatives (in millions of dollars): | |||||||||||||||||||||||||||||||||
Location of Gain or (Loss) | Amount of Gain or | ||||||||||||||||||||||||||||||||
Recognized on Derivatives | (Loss) Recognized in | ||||||||||||||||||||||||||||||||
Income on Derivatives | |||||||||||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||||||||||
2012 | 2011 | ||||||||||||||||||||||||||||||||
Derivatives not designated as hedging | |||||||||||||||||||||||||||||||||
instruments under ASC 815: | |||||||||||||||||||||||||||||||||
Gasoline swaps | Direct operating | $ | 0.7 | $ | 2.6 | ||||||||||||||||||||||||||||
Interest rate caps | Selling, general and administrative | (0.8 | ) | — | |||||||||||||||||||||||||||||
Foreign exchange forward contracts | Selling, general and administrative | (15.4 | ) | (11.0 | ) | ||||||||||||||||||||||||||||
Foreign exchange options | Selling, general and administrative | — | (0.2 | ) | |||||||||||||||||||||||||||||
Total | $ | (15.5 | ) | $ | (8.6 | ) |
Quarterly_Financial_Informatio1
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2012 | ||||||||||||||||
Quarterly Financial Information (Unaudited) | ||||||||||||||||
Schedule of Quarterly Financial Information | Provided below is a summary of the quarterly operating results during 2012 and 2011 (in millions of dollars). | |||||||||||||||
First | Second | Third | Fourth | |||||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||||
2012 | 2012 | 2012 | 2012 | |||||||||||||
Revenues | $ | 1,960.90 | $ | 2,225.10 | $ | 2,516.20 | $ | 2,318.60 | ||||||||
Income (loss) before income taxes | (24.0 | ) | 171.7 | 382.1 | (26.9 | ) | ||||||||||
Net income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder | (48.2 | ) | 101 | 251.3 | (28.3 | ) | ||||||||||
First | Second | Third | Fourth | |||||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||||
2011 | 2011 | 2011 | 2011 | |||||||||||||
Revenues | $ | 1,780.00 | $ | 2,072.30 | $ | 2,432.30 | $ | 2,013.80 | ||||||||
Income (loss) before income taxes | (146.7 | ) | 107 | 308.2 | 105.4 | |||||||||||
Net income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder | (123.0 | ) | 62.1 | 212.6 | 58.8 | |||||||||||
Guarantor_and_NonGuarantor_Con7
Guarantor and Non-Guarantor Condensed Consolidating Financial Statements (Tables) | 6 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | |||||||||||||||||||||||||||||||||||||||
Guarantor and Non-Guarantor Condensed Consolidating Financial Statements | ||||||||||||||||||||||||||||||||||||||||
Schedule of condensed consolidating balance sheets | CONDENSED CONSOLIDATING BALANCE SHEET | CONDENSED CONSOLIDATING BALANCE SHEET | ||||||||||||||||||||||||||||||||||||||
30-Jun-13 | 31-Dec-12 | |||||||||||||||||||||||||||||||||||||||
(In Millions of Dollars) | (In Thousands of Dollars) | |||||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | Parent | Guarantor | Non- | Eliminations | The Hertz | |||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | (The Hertz | Subsidiaries | Guarantor | Corporation & | |||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | Corporation) | Subsidiaries | Subsidiaries | |||||||||||||||||||||||||||||||||||
ASSETS | ASSETS | |||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 87.5 | $ | 24.5 | $ | 371 | $ | — | $ | 483 | Cash and cash equivalents | $ | 24,602 | $ | 2,578 | $ | 506,055 | $ | — | $ | 533,235 | |||||||||||||||||||
Restricted cash and cash equivalents | 33.7 | 17 | 342.5 | — | 393.2 | Restricted cash and cash equivalents | 32,681 | 14,535 | 524,418 | — | 571,634 | |||||||||||||||||||||||||||||
Receivables, less allowance for doubtful accounts | 500.8 | 482.1 | 719.3 | (46.2 | ) | 1,656.00 | Receivables, less allowance for doubtful accounts | 544,454 | 292,467 | 1,049,675 | — | 1,886,596 | ||||||||||||||||||||||||||||
Due from Hertz affiliate | 1,042.70 | 1,842.70 | 3,691.70 | (6,576.3 | ) | 0.8 | Due from Hertz affiliate | 1,047,986 | 59,181 | 2,199,247 | (3,293,605 | ) | 12,809 | |||||||||||||||||||||||||||
Inventories, at lower cost or market | 30.8 | 39.8 | 57.7 | — | 128.3 | Inventories, at lower cost or market | 24,422 | 34,101 | 47,205 | — | 105,728 | |||||||||||||||||||||||||||||
Prepaid expenses and other assets | 2,894.70 | 244.3 | 407.2 | (2,783.0 | ) | 763.2 | Prepaid expenses and other assets | 2,570,539 | 183,573 | 203,678 | (2,496,288 | ) | 461,502 | |||||||||||||||||||||||||||
Revenue earning equipment, net | 175.3 | 1,893.00 | 13,637.70 | — | 15,706.00 | Revenue earning equipment, net | 104,207 | 1,734,325 | 11,069,804 | — | 12,908,336 | |||||||||||||||||||||||||||||
Property and equipment, net | 897.6 | 315.1 | 252.9 | — | 1,465.60 | Property and equipment, net | 865,694 | 206,332 | 364,360 | — | 1,436,386 | |||||||||||||||||||||||||||||
Investment in subsidiaries, net | 6,833.10 | 1,367.90 | — | (8,201.0 | ) | — | Investment in subsidiaries, net | 6,964,916 | 506,123 | — | (7,471,039 | ) | — | |||||||||||||||||||||||||||
Other intangible assets, net | 70.2 | 3,848.10 | 50.2 | — | 3,968.50 | Other intangible assets, net | 74,606 | 2,352,342 | 1,605,163 | — | 4,032,111 | |||||||||||||||||||||||||||||
Goodwill | 106.2 | 1,035.60 | 224.5 | — | 1,366.30 | Goodwill | 106,210 | 133,923 | 1,101,739 | — | 1,341,872 | |||||||||||||||||||||||||||||
Total assets | $ | 12,672.60 | $ | 11,110.10 | $ | 19,754.70 | $ | (17,606.5 | ) | $ | 25,930.90 | Total assets | $ | 12,360,317 | $ | 5,519,480 | $ | 18,671,344 | $ | (13,260,932 | ) | $ | 23,290,209 | |||||||||||||||||
LIABILITIES AND EQUITY | LIABILITIES AND EQUITY | |||||||||||||||||||||||||||||||||||||||
Due to Hertz affiliate | $ | 2,097.10 | $ | 2,498.80 | $ | 1,980.40 | $ | (6,576.3 | ) | $ | — | Due to Hertz affiliate | $ | 2,254,223 | $ | 628,275 | $ | 411,107 | $ | (3,293,605 | ) | $ | — | |||||||||||||||||
Accounts payable | 165.2 | 267.9 | 1,051.40 | — | 1,484.50 | Accounts payable | 239,247 | 157,742 | 602,072 | — | 999,061 | |||||||||||||||||||||||||||||
Accrued liabilities | 642.7 | 242.2 | 343.6 | (46.2 | ) | 1,182.30 | Accrued liabilities | 605,680 | 84,992 | 487,788 | — | 1,178,460 | ||||||||||||||||||||||||||||
Accrued taxes | 60.3 | 33.9 | 1,335.00 | (1,245.6 | ) | 183.6 | Accrued taxes | 54,357 | 11,511 | 1,003,127 | (901,681 | ) | 167,314 | |||||||||||||||||||||||||||
Debt | 7,042.30 | 68.5 | 10,283.40 | — | 17,394.20 | Debt | 6,190,040 | 49,445 | 8,774,989 | — | 15,014,474 | |||||||||||||||||||||||||||||
Public liability and property damage | 93 | 58.5 | 176 | — | 327.5 | Public liability and property damage | 99,261 | 10,390 | 222,581 | — | 332,232 | |||||||||||||||||||||||||||||
Deferred taxes on income | — | 2,232.70 | 2,091.50 | (1,537.4 | ) | 2,786.80 | Deferred taxes on income | — | 1,776,199 | 2,499,548 | (1,594,607 | ) | 2,681,140 | |||||||||||||||||||||||||||
Total liabilities | 10,100.60 | 5,402.50 | 17,261.30 | (9,405.5 | ) | 23,358.90 | Total liabilities | 9,442,808 | 2,718,554 | 14,001,212 | (5,789,893 | ) | 20,372,681 | |||||||||||||||||||||||||||
Equity: | Equity: | |||||||||||||||||||||||||||||||||||||||
The Hertz Corporation and Subsidiaries stockholder's equity | 2,572.00 | 5,707.60 | 2,493.40 | (8,201.0 | ) | 2,572.00 | The Hertz Corporation and Subsidiaries stockholder's equity | 2,917,509 | 2,800,926 | 4,670,113 | (7,471,039 | ) | 2,917,509 | |||||||||||||||||||||||||||
Noncontrolling interest | — | — | — | — | — | Noncontrolling interest | — | — | 19 | — | 19 | |||||||||||||||||||||||||||||
Total equity | 2,572.00 | 5,707.60 | 2,493.40 | (8,201.0 | ) | 2,572.00 | Total equity | 2,917,509 | 2,800,926 | 4,670,132 | (7,471,039 | ) | 2,917,528 | |||||||||||||||||||||||||||
Total liabilities and equity | $ | 12,672.60 | $ | 11,110.10 | $ | 19,754.70 | $ | (17,606.5 | ) | $ | 25,930.90 | Total liabilities and equity | $ | 12,360,317 | $ | 5,519,480 | $ | 18,671,344 | $ | (13,260,932 | ) | $ | 23,290,209 | |||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | CONDENSED CONSOLIDATING BALANCE SHEET | |||||||||||||||||||||||||||||||||||||||
31-Dec-12 | 31-Dec-11 | |||||||||||||||||||||||||||||||||||||||
(In Millions of Dollars) | (In Thousands of Dollars) | |||||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | Parent | Guarantor | Non- | Eliminations | The Hertz | |||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | (The Hertz | Subsidiaries | Guarantor | Corporation & | |||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | Corporation) | Subsidiaries | Subsidiaries | |||||||||||||||||||||||||||||||||||
ASSETS | ASSETS | |||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 24.6 | $ | 6.5 | $ | 502.1 | $ | — | $ | 533.2 | Cash and cash equivalents | $ | 565,002 | $ | 7,385 | $ | 358,821 | $ | — | $ | 931,208 | |||||||||||||||||||
Restricted cash and cash equivalents | 32.7 | 17.1 | 521.8 | — | 571.6 | Restricted cash and cash equivalents | 44,663 | 28,130 | 235,246 | — | 308,039 | |||||||||||||||||||||||||||||
Receivables, less allowance for doubtful accounts | 544.5 | 444 | 924.7 | (26.6 | ) | 1,886.60 | Receivables, less allowance for doubtful accounts | 297,292 | 218,754 | 1,100,336 | — | 1,616,382 | ||||||||||||||||||||||||||||
Due from Hertz affiliate | 1,048.00 | 2,023.50 | 3,491.70 | (6,550.4 | ) | 12.8 | Due from Hertz affiliate | 655,411 | 65,972 | 1,194,041 | (1,915,424 | ) | — | |||||||||||||||||||||||||||
Inventories, at lower cost or market | 24.4 | 41.2 | 40.1 | — | 105.7 | Inventories, at lower cost or market | 22,440 | 26,541 | 34,997 | — | 83,978 | |||||||||||||||||||||||||||||
Prepaid expenses and other assets | 2,570.50 | 277.8 | 173.3 | (2,560.1 | ) | 461.5 | Prepaid expenses and other assets | 2,088,579 | 32,974 | 137,189 | (1,842,608 | ) | 416,134 | |||||||||||||||||||||||||||
Revenue earning equipment, net | 104.2 | 1,678.50 | 11,125.60 | — | 12,908.30 | Revenue earning equipment, net | 167,304 | 1,505,867 | 8,432,238 | — | 10,105,409 | |||||||||||||||||||||||||||||
Property and equipment, net | 865.7 | 321.9 | 248.8 | — | 1,436.40 | Property and equipment, net | 824,381 | 170,874 | 256,599 | — | 1,251,854 | |||||||||||||||||||||||||||||
Investment in subsidiaries, net | 6,964.90 | 1,260.90 | — | (8,225.8 | ) | — | Investment in subsidiaries, net | 4,413,289 | 460,201 | — | (4,873,490 | ) | — | |||||||||||||||||||||||||||
Other intangible assets, net | 74.6 | 3,893.30 | 64.2 | — | 4,032.10 | Other intangible assets, net | 94,682 | 2,363,617 | 103,935 | — | 2,562,234 | |||||||||||||||||||||||||||||
Goodwill | 106.2 | 1,018.90 | 216.8 | — | 1,341.90 | Goodwill | 100,221 | 67,228 | 224,645 | — | 392,094 | |||||||||||||||||||||||||||||
Total assets | $ | 12,360.30 | $ | 10,983.60 | $ | 17,309.10 | $ | (17,362.9 | ) | $ | 23,290.10 | Total assets | $ | 9,273,264 | $ | 4,947,543 | $ | 12,078,047 | $ | (8,631,522 | ) | $ | 17,667,332 | |||||||||||||||||
LIABILITIES AND EQUITY | LIABILITIES AND EQUITY | |||||||||||||||||||||||||||||||||||||||
Due to Hertz affiliate | $ | 2,254.20 | $ | 2,421.60 | $ | 1,874.60 | $ | (6,550.4 | ) | $ | — | Due to Hertz affiliate | $ | 1,251,347 | $ | 266,604 | $ | 397,885 | $ | (1,915,424 | ) | $ | 412 | |||||||||||||||||
Accounts payable | 239.2 | 193.9 | 566 | — | 999.1 | Accounts payable | 188,695 | 165,258 | 543,536 | — | 897,489 | |||||||||||||||||||||||||||||
Accrued liabilities | 605.7 | 45 | 554.3 | (26.6 | ) | 1,178.40 | Accrued liabilities | 607,673 | 209,263 | 309,402 | — | 1,126,338 | ||||||||||||||||||||||||||||
Accrued taxes | 54.4 | 29.1 | 1,049.30 | (965.5 | ) | 167.3 | Accrued taxes | 54,559 | 134,186 | (13,889 | ) | (11,872 | ) | 162,984 | ||||||||||||||||||||||||||
Debt | 6,190.00 | 67.7 | 8,756.80 | — | 15,014.50 | Debt | 4,434,274 | 4,237 | 6,469,338 | — | 10,907,849 | |||||||||||||||||||||||||||||
Public liability and property damage | 99.3 | 52.8 | 180.1 | — | 332.2 | Public liability and property damage | 107,881 | 14,025 | 159,628 | — | 281,534 | |||||||||||||||||||||||||||||
Deferred taxes on income | — | 2,205.60 | 2,070.10 | (1,594.6 | ) | 2,681.10 | Deferred taxes on income | — | 1,449,171 | 2,043,437 | (1,830,736 | ) | 1,661,872 | |||||||||||||||||||||||||||
Total liabilities | 9,442.80 | 5,015.70 | 15,051.20 | (9,137.1 | ) | 20,372.60 | Total liabilities | 6,644,429 | 2,242,744 | 9,909,337 | (3,758,032 | ) | 15,038,478 | |||||||||||||||||||||||||||
Equity: | Equity: | |||||||||||||||||||||||||||||||||||||||
The Hertz Corporation and Subsidiaries stockholder's equity | 2,917.50 | 5,967.90 | 2,257.90 | (8,225.8 | ) | 2,917.50 | The Hertz Corporation and Subsidiaries stockholder's equity | 2,628,835 | 2,704,799 | 2,168,691 | (4,873,490 | ) | 2,628,835 | |||||||||||||||||||||||||||
Noncontrolling interest | — | — | — | — | — | Noncontrolling interest | — | — | 19 | — | 19 | |||||||||||||||||||||||||||||
Total equity | 2,917.50 | 5,967.90 | 2,257.90 | (8,225.8 | ) | 2,917.50 | Total equity | 2,628,835 | 2,704,799 | 2,168,710 | (4,873,490 | ) | 2,628,854 | |||||||||||||||||||||||||||
Total liabilities and equity | $ | 12,360.30 | $ | 10,983.60 | $ | 17,309.10 | $ | (17,362.9 | ) | $ | 23,290.10 | Total liabilities and equity | $ | 9,273,264 | $ | 4,947,543 | $ | 12,078,047 | $ | (8,631,522 | ) | $ | 17,667,332 | |||||||||||||||||
Schedule of condensed consolidating statement of operations | CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | ||||||||||||||||||||||||||||||||||||||
For the Three Months Ended June 30, 2013 | For the Year Ended December 31, 2012 | |||||||||||||||||||||||||||||||||||||||
(In Millions of Dollars) | (In Thousands of Dollars) | |||||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | Parent | Guarantor | Non-Guarantor | Eliminations | The Hertz | |||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | (The Hertz | Subsidiaries | Subsidiaries | Corporation & | |||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | Corporation) | Subsidiaries | ||||||||||||||||||||||||||||||||||||
Total revenues | $ | 1,147.00 | $ | 662.8 | $ | 1,617.50 | $ | (712.7 | ) | $ | 2,714.60 | Total revenues | $ | 4,259,049 | $ | 975,500 | $ | 6,255,039 | $ | (2,468,781 | ) | $ | 9,020,807 | |||||||||||||||||
Expenses: | Expenses: | |||||||||||||||||||||||||||||||||||||||
Direct operating | 2,384,829 | 553,099 | 1,857,860 | — | 4,795,788 | |||||||||||||||||||||||||||||||||||
Direct operating | 618.8 | 357.1 | 430.3 | (0.3 | ) | 1,405.90 | Depreciation of revenue earning equipment and lease charges | 2,402,032 | 198,322 | 2,016,585 | (2,468,781 | ) | 2,148,158 | |||||||||||||||||||||||||||
Selling, general and administrative | 448,100 | 123,300 | 374,181 | — | 945,581 | |||||||||||||||||||||||||||||||||||
Depreciation of revenue earning equipment and lease charges | 608 | 168.9 | 576.4 | (712.2 | ) | 641.1 | Interest expense, net of interest income | 253,437 | 39,679 | 299,770 | — | 592,886 | ||||||||||||||||||||||||||||
Other (income) expense, net | (10,656 | ) | (19 | ) | 46,217 | — | 35,542 | |||||||||||||||||||||||||||||||||
Selling, general and administrative | 122.3 | 64.7 | 88 | (0.2 | ) | 274.8 | ||||||||||||||||||||||||||||||||||
Total expenses | 5,477,742 | 914,381 | 4,594,613 | (2,468,781 | ) | 8,517,955 | ||||||||||||||||||||||||||||||||||
Interest expense | 88 | 8.5 | 73.7 | — | 170.2 | |||||||||||||||||||||||||||||||||||
Income (loss) before income taxes and equity in earnings (losses) of subsidiaries | (1,218,693 | ) | 61,119 | 1,660,426 | — | 502,852 | ||||||||||||||||||||||||||||||||||
Interest income | — | (1.6 | ) | (0.4 | ) | — | (2.0 | ) | (Provision) benefit for taxes on income | 476,444 | (44,846 | ) | (658,671 | ) | — | (227,073 | ) | |||||||||||||||||||||||
Equity in earnings (losses) of subsidiaries (net of tax) | 1,018,028 | 45,922 | — | (1,063,950 | ) | — | ||||||||||||||||||||||||||||||||||
Other (income) expense, net | 14.5 | (2.2 | ) | (13.4 | ) | — | (1.1 | ) | ||||||||||||||||||||||||||||||||
Net income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder | $ | 275,779 | $ | 62,195 | $ | 1,001,755 | $ | (1,063,950 | ) | $ | 275,779 | |||||||||||||||||||||||||||||
Total expenses | 1,451.60 | 595.4 | 1,154.60 | (712.7 | ) | 2,488.90 | ||||||||||||||||||||||||||||||||||
Income (loss) before income taxes and equity in earnings (losses) of subsidiaries | (304.6 | ) | 67.4 | 462.9 | — | 225.7 | ||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | ||||||||||||||||||||||||||||||||||||||||
(Provision) benefit for taxes on income | 109.3 | (25.2 | ) | (179.9 | ) | — | (95.8 | ) | For the Year Ended December 31, 2011 | |||||||||||||||||||||||||||||||
(In Thousands of Dollars) | ||||||||||||||||||||||||||||||||||||||||
Equity in earnings (losses) of subsidiaries (net of tax) | 325.2 | 56.8 | — | (382.0 | ) | — | ||||||||||||||||||||||||||||||||||
Net income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder | $ | 129.9 | $ | 99 | $ | 283 | $ | (382.0 | ) | $ | 129.9 | Parent | Guarantor | Non-Guarantor | Eliminations | The Hertz | ||||||||||||||||||||||||
(The Hertz | Subsidiaries | Subsidiaries | Corporation & | |||||||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | |||||||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | Total revenues | $ | 4,068,310 | $ | 809,093 | $ | 5,733,827 | $ | (2,312,850 | ) | $ | 8,298,380 | ||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2013 | ||||||||||||||||||||||||||||||||||||||||
(In Millions of Dollars) | Expenses: | |||||||||||||||||||||||||||||||||||||||
Direct operating | 2,262,371 | 497,053 | 1,806,954 | — | 4,566,378 | |||||||||||||||||||||||||||||||||||
Depreciation of revenue earning equipment and lease charges | 1,996,733 | 180,807 | 2,041,049 | (2,312,850 | ) | 1,905,739 | ||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | Selling, general and administrative | 326,794 | 85,414 | 332,909 | — | 745,117 | ||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | Interest expense, net of interest income | 299,099 | 27,226 | 318,378 | — | 644,703 | |||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | Other (income) expense, net | 62,396 | (18 | ) | 170 | — | 62,548 | |||||||||||||||||||||||||||||||
Total revenues | $ | 2,201.60 | $ | 1,284.90 | $ | 3,120.60 | $ | (1,455.9 | ) | $ | 5,151.20 | |||||||||||||||||||||||||||||
Total expenses | 4,947,393 | 790,482 | 4,499,460 | (2,312,850 | ) | 7,924,485 | ||||||||||||||||||||||||||||||||||
Expenses: | ||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes, noncontrolling interest and equity in earnings (losses) of subsidiaries | (879,083 | ) | 18,611 | 1,234,367 | — | 373,895 | ||||||||||||||||||||||||||||||||||
Direct operating | 1,231.70 | 710 | 815.9 | (0.5 | ) | 2,757.10 | (Provision) benefit for taxes on income (loss) | 342,469 | (10,016 | ) | (476,299 | ) | — | (143,846 | ) | |||||||||||||||||||||||||
Equity in earnings (losses) of subsidiaries (net of tax) | 747,103 | 26,215 | — | (773,318 | ) | — | ||||||||||||||||||||||||||||||||||
Depreciation of revenue earning equipment and lease charges | 1,269.40 | 321.3 | 1,092.60 | (1,455.2 | ) | 1,228.10 | ||||||||||||||||||||||||||||||||||
Net income (loss) | 210,489 | 34,810 | 758,068 | (773,318 | ) | 230,049 | ||||||||||||||||||||||||||||||||||
Selling, general and administrative | 229.5 | 124.4 | 172.6 | (0.2 | ) | 526.3 | Less: Net income attributable to noncontrolling interest | — | — | (19,560 | ) | — | (19,560 | ) | ||||||||||||||||||||||||||
Interest expense | 169.1 | 18.8 | 145.6 | — | 333.5 | Net income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder | $ | 210,489 | $ | 34,810 | $ | 738,508 | $ | (773,318 | ) | $ | 210,489 | |||||||||||||||||||||||
Interest income | — | (3.1 | ) | (0.7 | ) | — | (3.8 | ) | ||||||||||||||||||||||||||||||||
Other (income) expense, net | 14.3 | (2.2 | ) | (13.8 | ) | — | (1.7 | ) | CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | |||||||||||||||||||||||||||||||
For the Year Ended December 31, 2010 | ||||||||||||||||||||||||||||||||||||||||
Total expenses | 2,914.00 | 1,169.20 | 2,212.20 | (1,455.9 | ) | 4,839.50 | (In Thousands of Dollars) | |||||||||||||||||||||||||||||||||
Income (loss) before income taxes and equity in earnings (losses) of subsidiaries | (712.4 | ) | 115.7 | 908.4 | — | 311.7 | ||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | The Hertz | ||||||||||||||||||||||||||||||||||||
(Provision) benefit for taxes on income | 257.5 | (43.1 | ) | (369.7 | ) | — | (155.3 | ) | (The Hertz | Subsidiaries | Subsidiaries | Corporation & | ||||||||||||||||||||||||||||
Corporation) | Subsidiaries | |||||||||||||||||||||||||||||||||||||||
Equity in earnings (losses) of subsidiaries (net of tax) | 611.3 | 111.6 | — | (722.9 | ) | — | Total revenues | $ | 3,961,435 | $ | 701,264 | $ | 5,350,348 | $ | (2,450,513 | ) | $ | 7,562,534 | ||||||||||||||||||||||
Net income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder | $ | 156.4 | $ | 184.2 | $ | 538.7 | $ | (722.9 | ) | $ | 156.4 | Expenses: | ||||||||||||||||||||||||||||
Direct operating | 2,217,864 | 452,674 | 1,612,856 | — | 4,283,394 | |||||||||||||||||||||||||||||||||||
Depreciation of revenue earning equipment and lease charges | 1,938,416 | 200,252 | 2,179,992 | (2,450,513 | ) | 1,868,147 | ||||||||||||||||||||||||||||||||||
Selling, general and administrative | 320,192 | 67,739 | 276,511 | — | 664,442 | |||||||||||||||||||||||||||||||||||
Interest expense, net of interest income | 297,276 | 20,068 | 396,880 | — | 714,224 | |||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | Other (income) expense, net | 9,915 | (3 | ) | (9,907 | ) | — | 5 | ||||||||||||||||||||||||||||||||
For the Three Months Ended June 30, 2012 | ||||||||||||||||||||||||||||||||||||||||
(In Millions of Dollars) | Total expenses | 4,783,663 | 740,730 | 4,456,332 | (2,450,513 | ) | 7,530,212 | |||||||||||||||||||||||||||||||||
Income (loss) before income taxes, noncontrolling interest and equity in earnings (losses) of subsidiaries | (822,228 | ) | (39,466 | ) | 894,016 | — | 32,322 | |||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | (Provision) benefit for taxes on income (loss) | 314,692 | 10,718 | (358,732 | ) | — | (33,322 | ) | ||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | Equity in earnings (losses) of subsidiaries (net of tax) | 489,153 | (5,268 | ) | — | (483,885 | ) | — | |||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | ||||||||||||||||||||||||||||||||||||||
Total revenues | $ | 1,074.90 | $ | 233.1 | $ | 1,493.10 | $ | (576.0 | ) | $ | 2,225.10 | Net income (loss) | (18,383 | ) | (34,016 | ) | 535,284 | (483,885 | ) | (1,000 | ) | |||||||||||||||||||
Less: Net income attributable to noncontrolling interest | — | — | (17,383 | ) | — | (17,383 | ) | |||||||||||||||||||||||||||||||||
Expenses: | ||||||||||||||||||||||||||||||||||||||||
Direct operating | 609.4 | 141.1 | 438.4 | — | 1,188.90 | Net income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder | $ | (18,383 | ) | $ | (34,016 | ) | $ | 517,901 | $ | (483,885 | ) | $ | (18,383 | ) | ||||||||||||||||||||
Depreciation of revenue earning equipment and lease charges | 560.6 | 48 | 487.2 | (576.0 | ) | 519.8 | ||||||||||||||||||||||||||||||||||
Selling, general and administrative | 94.4 | 31.4 | 80.8 | — | 206.6 | |||||||||||||||||||||||||||||||||||
Interest expense | 56 | 9.1 | 74.2 | — | 139.3 | |||||||||||||||||||||||||||||||||||
Interest income | — | (0.2 | ) | (0.3 | ) | — | (0.5 | ) | ||||||||||||||||||||||||||||||||
Other (income) expense, net | — | — | (0.6 | ) | — | (0.6 | ) | |||||||||||||||||||||||||||||||||
Total expenses | 1,320.40 | 229.4 | 1,079.70 | (576.0 | ) | 2,053.50 | ||||||||||||||||||||||||||||||||||
Income (loss) before income taxes noncontrolling interest and equity in earnings (losses) of subsidiaries | (245.5 | ) | 3.7 | 413.4 | — | 171.6 | ||||||||||||||||||||||||||||||||||
(Provision) benefit for taxes on income | 90.7 | (1.3 | ) | (160.1 | ) | — | (70.7 | ) | ||||||||||||||||||||||||||||||||
Equity in earnings (losses) of subsidiaries (net of tax) | 255.7 | (33.8 | ) | — | (221.9 | ) | — | |||||||||||||||||||||||||||||||||
Net income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder | $ | 100.9 | $ | (31.4 | ) | $ | 253.3 | $ | (221.9 | ) | $ | 100.9 | ||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | ||||||||||||||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2012 | ||||||||||||||||||||||||||||||||||||||||
(In Millions of Dollars) | ||||||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | ||||||||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | |||||||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | ||||||||||||||||||||||||||||||||||||||
Total revenues | $ | 2,042.90 | $ | 442.9 | $ | 2,834.30 | $ | (1,134.0 | ) | $ | 4,186.10 | |||||||||||||||||||||||||||||
Expenses: | ||||||||||||||||||||||||||||||||||||||||
Direct operating | 1,181.20 | 274.4 | 847.5 | — | 2,303.10 | |||||||||||||||||||||||||||||||||||
Depreciation of revenue earning equipment and lease charges | 1,099.30 | 92.4 | 977.2 | (1,134.0 | ) | 1,034.90 | ||||||||||||||||||||||||||||||||||
Selling, general and administrative | 198.6 | 56.9 | 158.8 | — | 414.3 | |||||||||||||||||||||||||||||||||||
Interest expense | 119.6 | 19 | 150.2 | — | 288.8 | |||||||||||||||||||||||||||||||||||
Interest income | (0.1 | ) | (0.4 | ) | (1.1 | ) | — | (1.6 | ) | |||||||||||||||||||||||||||||||
Other (income) expense, net | — | — | (1.0 | ) | — | (1.0 | ) | |||||||||||||||||||||||||||||||||
Total expenses | 2,598.60 | 442.3 | 2,131.60 | (1,134.0 | ) | 4,038.50 | ||||||||||||||||||||||||||||||||||
Income (loss) before income taxes noncontrolling interest and equity in earnings (losses) of subsidiaries | (555.7 | ) | 0.6 | 702.7 | — | 147.6 | ||||||||||||||||||||||||||||||||||
(Provision) benefit for taxes on income | 201.9 | (0.6 | ) | (296.2 | ) | — | (94.9 | ) | ||||||||||||||||||||||||||||||||
Equity in earnings (losses) of subsidiaries (net of tax) | 406.5 | (22.6 | ) | — | (383.9 | ) | — | |||||||||||||||||||||||||||||||||
Net income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder | $ | 52.7 | $ | (22.6 | ) | $ | 406.5 | $ | (383.9 | ) | $ | 52.7 | ||||||||||||||||||||||||||||
Schedule of condensed consolidating comprehensive income (loss) | CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) | CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) | ||||||||||||||||||||||||||||||||||||||
For the Three Months Ended June 30, 2013 | For the Year Ended December 31, 2012 | |||||||||||||||||||||||||||||||||||||||
(In Millions of Dollars) | (In Thousands of Dollars) | |||||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | Parent | Guarantor | Non- | Eliminations | The Hertz | |||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | (The Hertz | Subsidiaries | Guarantor | Corporation & | |||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | Corporation) | Subsidiaries | Subsidiaries | |||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 129.9 | $ | 99 | $ | 283 | $ | (382.0 | ) | $ | 129.9 | Net income (loss) | $ | 275,779 | $ | 62,195 | $ | 1,001,755 | $ | (1,063,950 | ) | $ | 275,779 | |||||||||||||||||
Other comprehensive income (loss), net of tax | (22.2 | ) | (3.2 | ) | (24.4 | ) | 27.6 | (22.2 | ) | Other comprehensive income, net of tax | 1,522 | 121 | 6,816 | (6,937 | ) | 1,522 | ||||||||||||||||||||||||
Comprehensive income (loss) | $ | 107.7 | $ | 95.8 | $ | 258.6 | $ | (354.4 | ) | $ | 107.7 | Comprehensive income (loss) | $ | 277,301 | $ | 62,316 | $ | 1,008,571 | $ | (1,070,887 | ) | $ | 277,301 | |||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) | ||||||||||||||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2013 | CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) | |||||||||||||||||||||||||||||||||||||||
(In Millions of Dollars) | For the Year Ended December 31, 2011 | |||||||||||||||||||||||||||||||||||||||
(In Thousands of Dollars) | ||||||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | ||||||||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | Parent | Guarantor | Non- | Eliminations | The Hertz | ||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | (The Hertz | Subsidiaries | Guarantor | Corporation & | ||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 156.4 | $ | 184.2 | $ | 538.7 | $ | (722.9 | ) | $ | 156.4 | Corporation) | Subsidiaries | Subsidiaries | ||||||||||||||||||||||||||
Net income (loss) | $ | 210,489 | $ | 34,810 | $ | 758,068 | $ | (773,318 | ) | $ | 230,049 | |||||||||||||||||||||||||||||
Other comprehensive income, net of tax | (46.5 | ) | (0.4 | ) | (51.3 | ) | 51.8 | (46.4 | ) | |||||||||||||||||||||||||||||||
Other comprehensive income, net of tax | (66,237 | ) | — | (34,619 | ) | 34,619 | (66,237 | ) | ||||||||||||||||||||||||||||||||
Comprehensive income (loss) | 109.9 | 183.8 | 487.4 | (671.1 | ) | 110 | ||||||||||||||||||||||||||||||||||
Comprehensive income (loss) | 144,252 | 34,810 | 723,449 | (738,699 | ) | 163,812 | ||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) | Less: Comprehensive income attributable to noncontrolling interest | — | — | (19,560 | ) | — | (19,560 | ) | ||||||||||||||||||||||||||||||||
For the Three Months Ended June 30, 2012 | ||||||||||||||||||||||||||||||||||||||||
(In Millions of Dollars) | Comprehensive income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder | $ | 144,252 | $ | 34,810 | $ | 703,889 | $ | (738,699 | ) | $ | 144,252 | ||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) | |||||||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | For the Year Ended December 31, 2010 | ||||||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | (In Thousands of Dollars) | |||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 100.9 | $ | (31.4 | ) | $ | 253.3 | $ | (221.9 | ) | $ | 100.9 | ||||||||||||||||||||||||||||
Other comprehensive income, net of tax | (42.0 | ) | — | (45.6 | ) | 45.6 | (42.0 | ) | Parent | Guarantor | Non- | Eliminations | The Hertz | |||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | |||||||||||||||||||||||||||||||||||||
Comprehensive income (loss) | 58.9 | (31.4 | ) | 207.7 | (176.3 | ) | 58.9 | Corporation) | Subsidiaries | Subsidiaries | ||||||||||||||||||||||||||||||
Net income (loss) | $ | (18,383 | ) | $ | (34,016 | ) | $ | 535,284 | $ | (483,885 | ) | $ | (1,000 | ) | ||||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) | Other comprehensive income, net of tax | 41,154 | — | 28,427 | (28,427 | ) | 41,154 | |||||||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2012 | ||||||||||||||||||||||||||||||||||||||||
(In Millions of Dollars) | Comprehensive income (loss) | 22,771 | (34,016 | ) | 563,711 | (512,312 | ) | 40,154 | ||||||||||||||||||||||||||||||||
Less: Comprehensive income attributable to noncontrolling interest | — | — | (17,383 | ) | — | (17,383 | ) | |||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | ||||||||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | Comprehensive income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder | $ | 22,771 | $ | (34,016 | ) | $ | 546,328 | $ | (512,312 | ) | $ | 22,771 | ||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | ||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 52.7 | $ | (22.6 | ) | $ | 406.5 | $ | (383.9 | ) | $ | 52.7 | ||||||||||||||||||||||||||||
Other comprehensive income, net of tax | (9.6 | ) | — | (16.4 | ) | 16.4 | (9.6 | ) | ||||||||||||||||||||||||||||||||
Comprehensive income (loss) | 43.1 | (22.6 | ) | 390.1 | (367.5 | ) | 43.1 | |||||||||||||||||||||||||||||||||
Schedule of condensed consolidating statement of cash flows | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||||||||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2013 | For the Year Ended December 31, 2012 | |||||||||||||||||||||||||||||||||||||||
(In Millions of Dollars) | (In Thousands of Dollars) | |||||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | The Hertz | ||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | (The Hertz | Subsidiaries | Subsidiaries | Corporation & | ||||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | Corporation) | Subsidiaries | |||||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | Net cash provided by (used in) operating activities | $ | 1,677,648 | $ | 690,292 | $ | 1,155,789 | $ | (775,317 | ) | $ | 2,748,412 | ||||||||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | (365.7 | ) | $ | 425.1 | $ | 1,811.90 | $ | (405.3 | ) | $ | 1,466.00 | ||||||||||||||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||||||||||||||||||
Cash flows from investing activities: | Net change in restricted cash and cash equivalents | 11,981 | 13,596 | (287,182 | ) | — | (261,605 | ) | ||||||||||||||||||||||||||||||||
Net change in restricted cash and cash equivalents | (1.0 | ) | 0.2 | 176.2 | — | 175.4 | Revenue earning equipment expenditures | (88,120 | ) | (763,610 | ) | (8,761,509 | ) | — | (9,613,239 | ) | ||||||||||||||||||||||||
Proceeds from disposal of revenue earning equipment | 79,390 | 276,342 | 6,769,364 | — | 7,125,096 | |||||||||||||||||||||||||||||||||||
Revenue earning equipment expenditures | (87.9 | ) | (347.7 | ) | (6,389.9 | ) | — | (6,825.5 | ) | Property and equipment expenditures | (173,053 | ) | (32,022 | ) | (107,711 | ) | — | (312,786 | ) | |||||||||||||||||||||
Proceeds from disposal of property and equipment | 67,370 | 11,839 | 58,485 | — | 137,694 | |||||||||||||||||||||||||||||||||||
Proceeds from disposal of revenue earning equipment | 47.7 | 16.9 | 3,678.20 | — | 3,742.80 | Capital contributions to subsidiaries | (4,267,118 | ) | — | — | 4,267,118 | — | ||||||||||||||||||||||||||||
Return of capital from subsidiaries | 1,829,256 | — | — | (1,829,256 | ) | — | ||||||||||||||||||||||||||||||||||
Property and equipment expenditures | (99.1 | ) | (18.0 | ) | (51.0 | ) | — | (168.1 | ) | Loan to Parent From Non-Guarantor | — | — | (385,108 | ) | 385,108 | — | ||||||||||||||||||||||||
Acquisitions, net of cash acquired | (1,708,520 | ) | (196,648 | ) | — | — | (1,905,168 | ) | ||||||||||||||||||||||||||||||||
Proceeds from disposal of property and equipment | 24.6 | 5.5 | 12.4 | — | 42.5 | Proceeds from disposal of business | — | — | 84,497 | — | 84,497 | |||||||||||||||||||||||||||||
Other investing activities | — | — | (1,779 | ) | — | (1,779 | ) | |||||||||||||||||||||||||||||||||
Capital contributions to subsidiaries | (485.7 | ) | — | — | 485.7 | — | ||||||||||||||||||||||||||||||||||
Net cash provided by (used in) investing activities | (4,248,814 | ) | (690,503 | ) | (2,630,943 | ) | 2,822,970 | (4,747,290 | ) | |||||||||||||||||||||||||||||||
Return of capital from subsidiaries | 651 | — | — | (651.0 | ) | — | ||||||||||||||||||||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||||||||||||||||||
Loan to Parent/Guarantor from Non-Guarantor | — | — | 57 | (57.0 | ) | — | Proceeds from issuance of long-term debt | 2,210,000 | — | 27,280 | — | 2,237,280 | ||||||||||||||||||||||||||||
Payment of long-term debt | (650,407 | ) | (18 | ) | (301,719 | ) | — | (952,144 | ) | |||||||||||||||||||||||||||||||
Acquisitions, net of cash acquired | — | (2.8 | ) | (226.4 | ) | — | (229.2 | ) | Short-term borrowings: | |||||||||||||||||||||||||||||||
Proceeds | — | — | 438,387 | — | 438,387 | |||||||||||||||||||||||||||||||||||
Proceeds from disposal of business | — | — | — | — | — | Payments | (26,775 | ) | — | (1,253,368 | ) | — | (1,280,143 | ) | ||||||||||||||||||||||||||
Proceeds (payments) under the revolving lines of credit, net | 220,000 | (1,262 | ) | 1,054,426 | — | 1,273,164 | ||||||||||||||||||||||||||||||||||
Other investing activities | — | — | (2.0 | ) | — | (2.0 | ) | Capital contributions received from parent | — | — | 4,267,118 | (4,267,118 | ) | — | ||||||||||||||||||||||||||
Loan to Parent From Non-Guarantor | 385,108 | — | — | (385,108 | ) | — | ||||||||||||||||||||||||||||||||||
Net cash provided by (used in) investing activities | 49.6 | (345.9 | ) | (2,745.5 | ) | (222.3 | ) | (3,264.1 | ) | Payment of dividends and return of capital | — | — | (2,604,573 | ) | 2,604,573 | — | ||||||||||||||||||||||||
Dividends paid | (25,000 | ) | — | — | — | (25,000 | ) | |||||||||||||||||||||||||||||||||
Cash flows from financing activities: | Proceeds from employee stock purchase plan | 4,275 | — | — | — | 4,275 | ||||||||||||||||||||||||||||||||||
Loan with Hertz Global Holdings, Inc. | (13,220 | ) | — | — | — | (13,220 | ) | |||||||||||||||||||||||||||||||||
Proceeds from issuance of long-term debt | 250 | — | 954.4 | — | 1,204.40 | Purchase of noncontrolling interest | (38,000 | ) | — | — | — | (38,000 | ) | |||||||||||||||||||||||||||
Payment of financing costs | (35,215 | ) | (3,316 | ) | (10,902 | ) | — | (49,433 | ) | |||||||||||||||||||||||||||||||
Payment of long-term debt | (22.8 | ) | — | (297.9 | ) | — | (320.7 | ) | ||||||||||||||||||||||||||||||||
Net cash provided by (used in) financing activities | 2,030,766 | (4,596 | ) | 1,616,649 | (2,047,653 | ) | 1,595,166 | |||||||||||||||||||||||||||||||||
Short-term borrowings: | ||||||||||||||||||||||||||||||||||||||||
Effect of foreign exchange rate changes on cash and cash equivalents | — | — | 5,739 | — | 5,739 | |||||||||||||||||||||||||||||||||||
Proceeds | — | — | 332 | — | 332 | |||||||||||||||||||||||||||||||||||
Net change in cash and cash equivalents during the period | (540,400 | ) | (4,807 | ) | 147,234 | — | (397,973 | ) | ||||||||||||||||||||||||||||||||
Payments | — | — | (435.9 | ) | — | (435.9 | ) | Cash and cash equivalents at beginning of period | 565,002 | 7,385 | 358,821 | — | 931,208 | |||||||||||||||||||||||||||
Proceeds under the revolving lines of credit | 1,360.00 | 1.6 | 2,318.50 | — | 3,680.10 | Cash and cash equivalents at end of period | $ | 24,602 | $ | 2,578 | $ | 506,055 | $ | — | $ | 533,235 | ||||||||||||||||||||||||
Payments under the revolving lines of credit | (735.0 | ) | (5.0 | ) | (1,477.9 | ) | — | (2,217.9 | ) | |||||||||||||||||||||||||||||||
Capital contributions received from parent | — | — | 485.7 | (485.7 | ) | — | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | |||||||||||||||||||||||||||||||||
For the Year Ended December 31, 2011 | ||||||||||||||||||||||||||||||||||||||||
Loan to Parent/Guarantor from Non-Guarantor | — | (57.0 | ) | — | 57 | — | (In Thousands of Dollars) | |||||||||||||||||||||||||||||||||
Payment of dividends and return of capital | — | — | (1,056.3 | ) | 1,056.30 | — | ||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | The Hertz | ||||||||||||||||||||||||||||||||||||
Dividends paid to Parent | (479.7 | ) | — | — | — | (479.7 | ) | (The Hertz | Subsidiaries | Subsidiaries | Corporation & | |||||||||||||||||||||||||||||
Corporation) | Subsidiaries | |||||||||||||||||||||||||||||||||||||||
Proceeds from employee stock purchase plan | 2.4 | — | — | — | 2.4 | Net cash provided by (used in) operating activities | $ | 1,000,597 | $ | 773,170 | $ | 1,038,124 | $ | (553,370 | ) | $ | 2,258,521 | |||||||||||||||||||||||
Loan with Hertz Global Holdings, Inc. | 12 | — | — | — | 12 | Cash flows from investing activities: | ||||||||||||||||||||||||||||||||||
Net change in restricted cash and cash equivalents | (28,570 | ) | (2,662 | ) | (70,534 | ) | — | (101,766 | ) | |||||||||||||||||||||||||||||||
Payment of financing costs | (7.9 | ) | (0.8 | ) | (11.9 | ) | — | (20.6 | ) | Revenue earning equipment expenditures | (142,134 | ) | (670,056 | ) | (8,642,121 | ) | — | (9,454,311 | ) | |||||||||||||||||||||
Proceeds from disposal of revenue earning equipment | 163,330 | 170,522 | 7,516,590 | — | 7,850,442 | |||||||||||||||||||||||||||||||||||
Net cash provided by (used in) financing activities | 379 | (61.2 | ) | 810.7 | 627.6 | 1,756.10 | Property and equipment expenditures | (189,562 | ) | (29,696 | ) | (62,437 | ) | — | (281,695 | ) | ||||||||||||||||||||||||
Proceeds from disposal of property and equipment | 23,952 | 9,263 | 20,599 | — | 53,814 | |||||||||||||||||||||||||||||||||||
Effect of foreign exchange rate changes on cash and cash equivalents | — | — | (8.2 | ) | — | (8.2 | ) | Capital contributions to subsidiaries | (3,549,088 | ) | — | — | 3,549,088 | — | ||||||||||||||||||||||||||
Return of capital from subsidiaries | 2,590,025 | — | — | (2,590,025 | ) | — | ||||||||||||||||||||||||||||||||||
Net change in cash and cash equivalents during the period | 62.9 | 18 | (131.1 | ) | — | (50.2 | ) | Loan to Parent from Non-Guarantor | — | — | (490,273 | ) | 490,273 | — | ||||||||||||||||||||||||||
Acquisitions, net of cash acquired | (214,384 | ) | (2,100 | ) | (10,597 | ) | — | (227,081 | ) | |||||||||||||||||||||||||||||||
Cash and cash equivalents at beginning of period | 24.6 | 6.5 | 502.1 | — | 533.2 | Purchase of short-term investments, net | (32,891 | ) | — | — | — | (32,891 | ) | |||||||||||||||||||||||||||
Other investing activities | — | (13,602 | ) | 14,188 | — | 586 | ||||||||||||||||||||||||||||||||||
Cash and cash equivalents at end of period | $ | 87.5 | $ | 24.5 | $ | 371 | $ | — | $ | 483 | ||||||||||||||||||||||||||||||
Net cash provided by (used in) investing activities | (1,379,322 | ) | (538,331 | ) | (1,724,585 | ) | 1,449,336 | (2,192,902 | ) | |||||||||||||||||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | Proceeds from issuance of long-term debt | 2,455,309 | — | 607,170 | — | 3,062,479 | ||||||||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2012 | Payment of long-term debt | (3,596,295 | ) | (17 | ) | (52,988 | ) | — | (3,649,300 | ) | ||||||||||||||||||||||||||||||
(In Millions of Dollars) | Short-term borrowings: | |||||||||||||||||||||||||||||||||||||||
Proceeds | — | — | 460,890 | — | 460,890 | |||||||||||||||||||||||||||||||||||
Payments | (29,224 | ) | — | (1,164,832 | ) | — | (1,194,056 | ) | ||||||||||||||||||||||||||||||||
Proceeds (payments) under the revolving lines of credit, net | (29,128 | ) | (229,778 | ) | 201,577 | — | (57,329 | ) | ||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | Distributions to noncontrolling interest | — | — | (23,100 | ) | — | (23,100 | ) | ||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | Capital contributions received from parent | — | — | 3,549,088 | (3,549,088 | ) | — | ||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | Payment of dividends and return of capital | (22,950 | ) | — | (3,143,395 | ) | 3,143,395 | (22,950 | ) | |||||||||||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | (219.0 | ) | $ | 334.2 | $ | 1,409.30 | $ | (341.5 | ) | $ | 1,183.00 | Proceeds from employee stock purchase plan | 3,577 | — | — | — | 3,577 | ||||||||||||||||||||||
Loan to Parent from Non-Guarantor | 490,273 | — | — | (490,273 | ) | — | ||||||||||||||||||||||||||||||||||
Cash flows from investing activities: | Loan from Hertz Global Holdings, Inc. | (984 | ) | — | — | — | (984 | ) | ||||||||||||||||||||||||||||||||
Payment of financing costs | (81,229 | ) | (2,817 | ) | (7,436 | ) | — | (91,482 | ) | |||||||||||||||||||||||||||||||
Net change in restricted cash and cash equivalents | 12.6 | 18.2 | 99.3 | — | 130.1 | |||||||||||||||||||||||||||||||||||
Net cash provided by (used in) financing activities | (810,651 | ) | (232,612 | ) | 426,974 | (895,966 | ) | (1,512,255 | ) | |||||||||||||||||||||||||||||||
Revenue earning equipment expenditures | (73.8 | ) | (334.1 | ) | (5,303.1 | ) | — | (5,711.0 | ) | |||||||||||||||||||||||||||||||
Effect of foreign exchange rate changes on cash and cash equivalents | — | — | 3,838 | — | 3,838 | |||||||||||||||||||||||||||||||||||
Proceeds from disposal of revenue earning equipment | 54.4 | 162.6 | 3,391.30 | — | 3,608.30 | |||||||||||||||||||||||||||||||||||
Net decrease in cash and cash equivalents during the period | (1,189,376 | ) | 2,227 | (255,649 | ) | — | (1,442,798 | ) | ||||||||||||||||||||||||||||||||
Property and equipment expenditures | (80.2 | ) | (24.2 | ) | (32.8 | ) | — | (137.2 | ) | Cash and cash equivalents at beginning of period | 1,754,378 | 5,158 | 614,470 | — | 2,374,006 | |||||||||||||||||||||||||
Proceeds from disposal of property and equipment | 44.3 | 4.2 | 7.9 | — | 56.4 | Cash and cash equivalents at end of period | $ | 565,002 | $ | 7,385 | $ | 358,821 | $ | — | $ | 931,208 | ||||||||||||||||||||||||
Capital contributions to subsidiaries | (2,215.9 | ) | — | — | 2,215.90 | — | ||||||||||||||||||||||||||||||||||
Return of capital from subsidiaries | 2,220.60 | — | — | (2,220.6 | ) | — | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | |||||||||||||||||||||||||||||||||
For the Year Ended December 31, 2010 | ||||||||||||||||||||||||||||||||||||||||
Acquisitions, net of cash acquired | — | (161.8 | ) | — | — | (161.8 | ) | (In Thousands of Dollars) | ||||||||||||||||||||||||||||||||
Loan to Parent from Non-Guarantor | — | — | (18.3 | ) | 18.3 | — | ||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | The Hertz | ||||||||||||||||||||||||||||||||||||
Other investing activities | — | — | (0.6 | ) | — | (0.6 | ) | (The Hertz | Subsidiaries | Subsidiaries | Corporation & | |||||||||||||||||||||||||||||
Corporation) | Subsidiaries | |||||||||||||||||||||||||||||||||||||||
Net cash provided by (used in) investing activities | (38.0 | ) | (335.1 | ) | (1,856.3 | ) | 13.6 | (2,215.8 | ) | Net cash provided by (used in) operating activities | $ | 337,055 | $ | 88,941 | $ | 2,193,486 | $ | (381,555 | ) | $ | 2,237,927 | |||||||||||||||||||
Cash flows from financing activities: | Cash flows from investing activities: | |||||||||||||||||||||||||||||||||||||||
Proceeds from issuance of long-term debt | 260 | — | 10.5 | — | 270.5 | Net change in restricted cash and cash equivalents | 19,932 | (17,514 | ) | 158,098 | — | 160,516 | ||||||||||||||||||||||||||||
Revenue earning equipment expenditures | (188,057 | ) | (96,452 | ) | (8,156,363 | ) | — | (8,440,872 | ) | |||||||||||||||||||||||||||||||
Payment of long-term debt | (637.3 | ) | — | (5.8 | ) | — | (643.1 | ) | Proceeds from disposal of revenue earning equipment | 169,451 | 75,139 | 7,273,856 | — | 7,518,446 | ||||||||||||||||||||||||||
Property and equipment expenditures | (92,415 | ) | (14,137 | ) | (72,657 | ) | — | (179,209 | ) | |||||||||||||||||||||||||||||||
Short-term borrowings: | Proceeds from disposal of property and equipment | 4,311 | 10,416 | 24,178 | — | 38,905 | ||||||||||||||||||||||||||||||||||
Capital contributions to subsidiaries | (1,544,332 | ) | — | — | 1,544,332 | — | ||||||||||||||||||||||||||||||||||
Proceeds | — | — | 246.7 | — | 246.7 | Return of capital from subsidiaries | 1,877,095 | — | — | (1,877,095 | ) | — | ||||||||||||||||||||||||||||
Acquisitions, net of cash acquired | (35 | ) | (43,789 | ) | (3,747 | ) | — | (47,571 | ) | |||||||||||||||||||||||||||||||
Payments | (26.8 | ) | — | (629.4 | ) | — | (656.2 | ) | Purchase of short-term investments, net | 3,183 | 94 | 214 | — | 3,491 | ||||||||||||||||||||||||||
Other investing activities | — | — | 2,726 | — | 2,726 | |||||||||||||||||||||||||||||||||||
Proceeds under the revolving lines of credit | 1,360.00 | 1.9 | 2,173.60 | — | 3,535.50 | |||||||||||||||||||||||||||||||||||
Net cash provided by (used in) investing activities | 249,133 | (86,243 | ) | (773,695 | ) | (332,763 | ) | (943,568 | ) | |||||||||||||||||||||||||||||||
Payments under the revolving lines of credit | (950.0 | ) | (2.9 | ) | (1,038.8 | ) | — | (1,991.7 | ) | |||||||||||||||||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||||||||||||||||||
Purchase of noncontrolling interest | (38.0 | ) | — | — | — | (38.0 | ) | Proceeds from issuance of long-term debt | 1,209,866 | — | 1,425,847 | — | 2,635,713 | |||||||||||||||||||||||||||
Payment of long-term debt | (73,342 | ) | (68 | ) | (2,880,823 | ) | — | (2,954,233 | ) | |||||||||||||||||||||||||||||||
Capital contributions received from parent | — | — | 2,215.90 | (2,215.9 | ) | — | Short-term borrowings: | |||||||||||||||||||||||||||||||||
Proceeds | — | — | 490,490 | — | 490,490 | |||||||||||||||||||||||||||||||||||
Payment of dividends and return of capital | (12.5 | ) | — | (2,562.1 | ) | 2,562.10 | (12.5 | ) | Payments | (2,615 | ) | — | (968,334 | ) | — | (970,949 | ) | |||||||||||||||||||||||
Proceeds (payments) under the revolving lines of credit, net | (18,907 | ) | (3,515 | ) | 1,048,492 | — | 1,026,070 | |||||||||||||||||||||||||||||||||
Repayment of Loan to Parent from Non-Guarantor | 18.3 | — | — | (18.3 | ) | — | Distributions to noncontrolling interest | — | — | (18,200 | ) | — | (18,200 | ) | ||||||||||||||||||||||||||
Capital contributions received from parent | — | — | 1,544,332 | (1,544,332 | ) | — | ||||||||||||||||||||||||||||||||||
Proceeds from employee stock purchase plan | 2 | — | — | — | 2 | Payment of dividends and return of capital | (23,000 | ) | — | (2,258,650 | ) | 2,258,650 | (23,000 | ) | ||||||||||||||||||||||||||
Proceeds from employee stock purchase plan | 3,208 | — | — | — | 3,208 | |||||||||||||||||||||||||||||||||||
Loan from Hertz Global Holdings, Inc. | (13.9 | ) | — | — | — | (13.9 | ) | Loan from Hertz Global Holdings, Inc. | (6,173 | ) | — | — | — | (6,173 | ) | |||||||||||||||||||||||||
Excess tax benefits from exercise of stock | (258 | ) | — | — | — | (258 | ) | |||||||||||||||||||||||||||||||||
Payment of financing costs | (4.2 | ) | (1.5 | ) | (1.2 | ) | — | (6.9 | ) | Payment of financing costs | (29,111 | ) | — | (49,040 | ) | — | (78,151 | ) | ||||||||||||||||||||||
Net cash provided by (used in) financing activities | (42.4 | ) | (2.5 | ) | 409.4 | 327.9 | 692.4 | Net cash provided by (used in) financing activities | 1,059,668 | (3,583 | ) | (1,665,886 | ) | 714,318 | 104,517 | |||||||||||||||||||||||||
Effect of foreign exchange rate changes on cash and cash equivalents | — | — | (4.8 | ) | — | (4.8 | ) | Effect of foreign exchange rate changes on cash and cash equivalents | — | — | (10,337 | ) | — | (10,337 | ) | |||||||||||||||||||||||||
Net decrease in cash and cash equivalents during the period | (299.4 | ) | (3.4 | ) | (42.4 | ) | — | (345.2 | ) | Net decrease in cash and cash equivalents during the period | 1,645,856 | (885 | ) | (256,432 | ) | — | 1,388,539 | |||||||||||||||||||||||
Cash and cash equivalents at beginning of period | 108,522 | 6,043 | 870,902 | — | 985,467 | |||||||||||||||||||||||||||||||||||
Cash and cash equivalents at beginning of period | 565 | 7.4 | 358.8 | — | 931.2 | |||||||||||||||||||||||||||||||||||
Cash and cash equivalents at end of period | $ | 1,754,378 | $ | 5,158 | $ | 614,470 | $ | — | $ | 2,374,006 | ||||||||||||||||||||||||||||||
Cash and cash equivalents at end of period | $ | 265.6 | $ | 4 | $ | 316.4 | $ | — | $ | 586 | ||||||||||||||||||||||||||||||
Background_Details1
Background (Details) (USD $) | 1 Months Ended | 12 Months Ended | ||||||
31-May-13 | Mar. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Nov. 30, 2011 | Nov. 19, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | |
Dollar Thrifty Automotive Group Inc. | Hertz Investors, Inc [Member] | Hertz Global Holdings [Member] | ||||||
Acquisition | ||||||||
Capital Stock Outstanding, Investor Ownership Percentage | 100.00% | 100.00% | ||||||
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% | 65.00% | ||||||
Per share price | $87.50 | |||||||
Common stock shares sold | 49,800,405,000 | 60,050,777 | 50,000,000 | |||||
Ownership percent held in ultimate parent | 26.00% |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details) (USD $) | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Restricted cash and cash equivalents | |||||
Maximum original maturity period of highly liquid debt instruments to be considered as cash equivalents | 3 months | 3 months | |||
Contractual maturity of revolving lines of credit that may exceed in certain cases | 90 days | ||||
Gain (Loss) on Sale of Property Plant Equipment | $1,500,000 | $700,000 | $8,309,000 | $43,520,000 | $5,740,000 |
Foreign currency translation gain | 102,700,000 | 91,300,000 | |||
Advertising costs | 158,000,000 | 145,800,000 | 133,800,000 | ||
Direct Operating Expense [Member] | |||||
Restricted cash and cash equivalents | |||||
Gain (Loss) on Sale of Property Plant Equipment | $6,300,000 | $43,100,000 |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Details 2) | 12 Months Ended |
Dec. 31, 2012 | |
Buildings | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Buildings | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 50 years |
Furniture and fixtures | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 1 year |
Furniture and fixtures | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 15 years |
Capitalized internal use software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 1 year |
Capitalized internal use software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 15 years |
Service cars and service equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 1 year |
Service cars and service equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 13 years |
Other intangible assets | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Other intangible assets | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 20 years |
Cars | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 4 months |
Cars | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 27 months |
Other equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 24 months |
Other equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 108 months |
Goodwill_and_Other_Intangible_6
Goodwill and Other Intangible Assets (Details) (USD $) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Goodwill | |||
Balance at the beginning of the period | $2,062,900,000 | $1,113,100,000 | $1,049,600,000 |
Accumulated impairment losses at the beginning of the period | -721,000,000 | -721,000,000 | -721,000,000 |
Net goodwill, balance at the beginning of the period | 1,341,872,000 | 392,094,000 | 328,600,000 |
Goodwill acquired during the period | 9,400,000 | 966,900,000 | 65,400,000 |
Adjustments to previously recorded purchase price allocation | 16,700,000 | -15,300,000 | -1,000,000 |
Other changes during the period | -1,700,000 | -1,800,000 | -900,000 |
Total changes in goodwill | 24,400,000 | 949,800,000 | 63,500,000 |
Balance at the end of the period | 2,087,300,000 | 2,062,900,000 | 1,113,100,000 |
Accumulated impairment losses at the end of the period | -721,000,000 | -721,000,000 | -721,000,000 |
Net goodwill, balance at the end of the period | 1,366,300,000 | 1,341,872,000 | 392,094,000 |
Car Rental | |||
Goodwill | |||
Balance at the beginning of the period | 1,287,500,000 | 419,300,000 | 367,900,000 |
Accumulated impairment losses at the beginning of the period | -46,100,000 | -46,100,000 | -46,100,000 |
Net goodwill, balance at the beginning of the period | 1,241,400,000 | 373,200,000 | 321,800,000 |
Goodwill acquired during the period | 9,400,000 | 884,900,000 | 53,100,000 |
Adjustments to previously recorded purchase price allocation | 15,000,000 | -15,300,000 | -900,000 |
Other changes during the period | -1,600,000 | -1,400,000 | -800,000 |
Total changes in goodwill | 22,800,000 | 868,200,000 | 51,400,000 |
Balance at the end of the period | 1,310,300,000 | 1,287,500,000 | 419,300,000 |
Accumulated impairment losses at the end of the period | -46,100,000 | -46,100,000 | -46,100,000 |
Net goodwill, balance at the end of the period | 1,264,200,000 | 1,241,400,000 | 373,200,000 |
Equipment Rental | |||
Goodwill | |||
Balance at the beginning of the period | 775,400,000 | 693,800,000 | 681,700,000 |
Accumulated impairment losses at the beginning of the period | -674,900,000 | -674,900,000 | -674,900,000 |
Net goodwill, balance at the beginning of the period | 100,500,000 | 18,900,000 | 6,800,000 |
Goodwill acquired during the period | 0 | 82,000,000 | 12,300,000 |
Adjustments to previously recorded purchase price allocation | 1,700,000 | 0 | -100,000 |
Other changes during the period | -100,000 | -400,000 | -100,000 |
Total changes in goodwill | 1,600,000 | 81,600,000 | 12,100,000 |
Balance at the end of the period | 777,000,000 | 775,400,000 | 693,800,000 |
Accumulated impairment losses at the end of the period | -674,900,000 | -674,900,000 | -674,900,000 |
Net goodwill, balance at the end of the period | $102,100,000 | $100,500,000 | $18,900,000 |
Goodwill_and_Other_Intangible_7
Goodwill and Other Intangible Assets (Details 2) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Amortizable intangible assets: | |||||||
Gross Carrying Amount | $1,148,600,000 | $1,148,600,000 | $1,154,300,000 | $747,300,000 | |||
Accumulated Amortization | -528,300,000 | -528,300,000 | -467,800,000 | -393,300,000 | |||
Net Carrying Value | 620,300,000 | 620,300,000 | 686,500,000 | 354,000,000 | |||
Indefinite-lived intangible assets: | |||||||
Gross Carrying Amount | 3,348,200,000 | 3,348,200,000 | 3,345,600,000 | 2,208,200,000 | |||
Total Other intangible assets | |||||||
Gross Carrying Amount | 4,496,800,000 | 4,496,800,000 | 4,499,900,000 | 2,955,500,000 | |||
Accumulated Amortization | -528,300,000 | -528,300,000 | -467,800,000 | -393,300,000 | |||
Net Carrying Value | 3,968,500,000 | 3,968,500,000 | 4,032,111,000 | 2,562,234,000 | |||
Amortization Expense, Fiscal Year Maturity [Abstract] | |||||||
Amortization of other intangible assets | 30,200,000 | 19,800,000 | 60,700,000 | 39,000,000 | 84,096,000 | 70,039,000 | 64,713,000 |
Expected amortization expense for the remainder of 2012 | 60,000,000 | 60,000,000 | 120,500,000 | ||||
Expected Amortization expense in 2013 | 116,400,000 | 116,400,000 | 116,100,000 | ||||
Expected Amortization expense in 2014 | 113,900,000 | 113,900,000 | 113,700,000 | ||||
Expected Amortization expense in 2015 | 64,900,000 | 64,900,000 | 64,800,000 | ||||
Expected Amortization expense in 2016 | 51,800,000 | 51,800,000 | 51,800,000 | ||||
Customer-related | |||||||
Amortizable intangible assets: | |||||||
Gross Carrying Amount | 694,600,000 | 694,600,000 | 694,700,000 | 672,600,000 | |||
Accumulated Amortization | -468,500,000 | -468,500,000 | -434,000,000 | -365,500,000 | |||
Net Carrying Value | 226,100,000 | 226,100,000 | 260,700,000 | 307,100,000 | |||
Total Other intangible assets | |||||||
Accumulated Amortization | -468,500,000 | -468,500,000 | -434,000,000 | -365,500,000 | |||
Other intangible assets | |||||||
Amortizable intangible assets: | |||||||
Gross Carrying Amount | 454,000,000 | 454,000,000 | 459,600,000 | 74,700,000 | |||
Accumulated Amortization | -59,800,000 | -59,800,000 | -33,800,000 | -27,800,000 | |||
Net Carrying Value | 394,200,000 | 394,200,000 | 425,800,000 | 46,900,000 | |||
Total Other intangible assets | |||||||
Accumulated Amortization | -59,800,000 | -59,800,000 | -33,800,000 | -27,800,000 | |||
Trade name | |||||||
Indefinite-lived intangible assets: | |||||||
Gross Carrying Amount | 3,330,000,000 | 3,330,000,000 | 3,330,000,000 | 2,190,000,000 | |||
Other indefinite-lived intangible assets | |||||||
Indefinite-lived intangible assets: | |||||||
Gross Carrying Amount | $18,200,000 | $18,200,000 | $15,600,000 | $18,200,000 |
Business_Combinations_and_Dive5
Business Combinations and Divestitures (Details) (USD $) | 0 Months Ended | 3 Months Ended | 0 Months Ended | 11 Months Ended | 12 Months Ended | 0 Months Ended | ||||||||
Nov. 19, 2012 | Sep. 01, 2011 | Jun. 30, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Aug. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Nov. 19, 2012 | Nov. 19, 2012 | Sep. 01, 2011 | Dec. 31, 2012 | Nov. 19, 2012 | Nov. 19, 2012 | |
Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Donlen Corporation | Series of Individually Immaterial Business Acquisitions | Trade name | Concessions | |||||||||
location | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | ||||||||||||
Acquisition | ||||||||||||||
Per share price | $87.50 | $87.50 | ||||||||||||
Recognized identifieable assets acquired, goodwill and liabiliteis assumed, net | $2,592,000,000 | $2,592,000,000 | $250,000,000 | |||||||||||
Payments to acquire business | 2,551,000,000 | 2,551,000,000 | ||||||||||||
Cash and equivalents acquired in acquisition | 404,000,000 | 404,000,000 | ||||||||||||
Equity interest in acquiree, fair value | 41,000,000 | 41,000,000 | ||||||||||||
Remeasurement gain | 8,400,000 | |||||||||||||
Proceeds from issuance of debt | 1,950,000,000 | |||||||||||||
Aggregate maximum borrowings | 1,950,000,000 | |||||||||||||
Other intangible assets | 1,546,000,000 | 1,546,000,000 | 75,000,000 | 1,140,000,000 | 406,000,000 | |||||||||
Useful life (in years) | 9 years | |||||||||||||
Goodwill | 1,366,300,000 | 1,341,872,000 | 392,094,000 | 328,600,000 | 885,000,000 | 885,000,000 | 51,100,000 | |||||||
Percentage of voting interests acquired | 100.00% | |||||||||||||
Consideration transferred | 250,000,000 | |||||||||||||
Provisional information, initial accounting incomplete, adjustment, consideration transferred | $2,400,000 | ($2,400,000) | ||||||||||||
Number of Businesses Acquired | 19 |
Business_Combinations_and_Dive6
Business Combinations and Divestitures (Details 2) (USD $) | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Sep. 01, 2011 | Nov. 19, 2012 |
Donlen Corporation | Dollar Thrifty Automotive Group Inc. | |||||
Acquisition | ||||||
Cash and cash equivalents | $35,600,000 | $535,000,000 | ||||
Restricted cash and cash equivalents | 307,000,000 | |||||
Receivables | 64,000,000 | 170,000,000 | ||||
Inventories | 8,000,000 | |||||
Prepaid expenses and other assets | 7,000,000 | 41,000,000 | ||||
Revenue earning equipment | 1,120,600,000 | 1,614,000,000 | ||||
Property and equipment | 13,500,000 | 119,000,000 | ||||
Other intangible assets | 75,000,000 | 1,546,000,000 | ||||
Other assets | 35,000,000 | |||||
Goodwill | 1,366,300,000 | 1,341,872,000 | 392,094,000 | 328,600,000 | 51,100,000 | 885,000,000 |
Accounts payable | -39,300,000 | -43,000,000 | ||||
Accrued liabilities | -226,800,000 | -277,000,000 | ||||
Deferred taxes on income | -121,900,000 | -864,000,000 | ||||
Debt | -728,800,000 | -1,484,000,000 | ||||
Total | $250,000,000 | $2,592,000,000 |
Business_Combinations_and_Dive7
Business Combinations and Divestitures (Details 3) (Donlen Corporation, USD $) | 0 Months Ended |
Sep. 01, 2011 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Fair value (in millions) | $75,000 |
Customer-related | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Useful life (in years) | 16 years |
Fair value (in millions) | 65,000 |
Trademark | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Useful life (in years) | 20 years |
Fair value (in millions) | 7,000 |
Non-compete agreement | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Useful life (in years) | 5 years |
Fair value (in millions) | $3,000 |
Business_Combinations_and_Dive8
Business Combinations and Divestitures (Details 4) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 4 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||
Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Aug. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Nov. 19, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2011 | Dec. 31, 2010 | |
Donlen Corporation | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Acquisition related costs | Acquisition related costs | Acquisition related costs | Deferred Revenue Eliminated | Deferred Revenue Eliminated | Deferred Income Eliminated | Deferred Income Eliminated | |||||||||
Donlen Corporation | Donlen Corporation | Dollar Thrifty Automotive Group Inc. | Donlen Corporation | Donlen Corporation | Donlen Corporation | Donlen Corporation | ||||||||||||||
Business Acquisition, Pro Forma Information [Abstract] | ||||||||||||||||||||
Revenue of acquiree since acquisition date, actual | $142,700,000 | $170,600,000 | ||||||||||||||||||
Earnings or loss of acquiree since acquisition date | 2,000,000 | -25,900,000 | ||||||||||||||||||
Pro forma revenue | 2,555,100,000 | 4,812,500,000 | 10,193,300,000 | 9,920,300,000 | 7,904,300,000 | 3,200,000 | 8,700,000 | |||||||||||||
Pro forma net income (loss) | 123,600,000 | 90,600,000 | 441,800,000 | 235,100,000 | -48,600,000 | -6,100,000 | -6,100,000 | -2,000,000 | -5,300,000 | |||||||||||
Amortization of other intangible assets | 30,200,000 | 19,800,000 | 60,700,000 | 39,000,000 | 84,096,000 | 70,039,000 | 64,713,000 | 38,900,000 | 44,400,000 | |||||||||||
Interest expense | 170,200,000 | 139,300,000 | 333,500,000 | 288,800,000 | 597,788,000 | 650,254,000 | 726,539,000 | 72,700,000 | 79,100,000 | |||||||||||
Labor and Related Expense | 46,700,000 | |||||||||||||||||||
Per share price | $87.50 | |||||||||||||||||||
Cash and equivalents acquired in acquisition | 404,000,000 | |||||||||||||||||||
Aggregate maximum borrowings | $1,950,000,000 | |||||||||||||||||||
Pro Forma Adjustments, Assumed Tax Rate | 39.00% |
Business_Combinations_and_Dive9
Business Combinations and Divestitures (Details 5) (USD $) | Jun. 30, 2013 | Dec. 12, 2012 | Dec. 12, 2012 | Nov. 19, 2012 | Dec. 12, 2012 | Dec. 12, 2012 | Dec. 12, 2012 | Dec. 12, 2012 |
In Millions, unless otherwise specified | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Simply Wheelz, LLC | Initial Airport Locations | Maximum | Commitment to Lend [Member] | Commitment to Lend [Member] | Commitment to Lend [Member] |
Advantage | Simply Wheelz, LLC | Simply Wheelz, LLC | Maximum | Weighted Average | ||||
location | Simply Wheelz, LLC | Simply Wheelz, LLC | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Disposal Group, Including Discontinued Operations, Number of Locations Secured for Buyer | 13 | |||||||
Disposal Group, Including Discontinued Operation, Sales Price, Base | $16 | |||||||
Disposal Group, Including Discontinued Operation, Assets (Liabilities), Net | 3.6 | |||||||
Loss Contingency, Range of Possible Loss, Maximum | 15.7 | 24.1 | 17 | |||||
Loss Contingency, Recognition Period | 3 years | |||||||
Loss Contingency, Estimate of Possible Loss, Present Value | 15.6 | |||||||
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | 31.4 | |||||||
Other Commitment | $45 | |||||||
Other Commitment, Term | 5 years | 2 years 6 months | ||||||
Other Commitment, Rate | 13.00% | |||||||
Disposal Group, Including Discontinued Operation, Productive Assets, Lease Term | 2 years |
Debt_Details1
Debt (Details) | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | |||||||||||||||||||
USD ($) | USD ($) | USD ($) | Corporate Debt | Corporate Debt | Corporate Debt | Senior Term Facility | Senior Term Facility | Senior Term Facility | Senior ABL Facility | Senior ABL Facility | Senior ABL Facility | Promissory Notes | Promissory Notes | Promissory Notes | Other Corporate Debt | Other Corporate Debt | Other Corporate Debt | Fleet debt | Fleet debt | Fleet debt | U.S. Fleet Variable Funding Notes | U.S. Fleet Variable Funding Notes | U.S. Fleet Variable Funding Notes | U.S. Fleet Variable Funding Notes Series 2009-1 | U.S. Fleet Variable Funding Notes Series 2009-1 | U.S. Fleet Variable Funding Notes Series 2009-1 | U.S. Fleet Variable Funding Notes Series 2010-2 | U.S. Fleet Variable Funding Notes Series 2010-2 | U.S. Fleet Variable Funding Notes Series 2011-2 | U.S. Fleet Variable Funding Notes Series 2011-2 | U.S. Fleet Medium Term Notes | U.S. Fleet Medium Term Notes | U.S. Fleet Medium Term Notes | U.S. Fleet Medium Term Notes Series 2009-2 Notes | U.S. Fleet Medium Term Notes Series 2009-2 Notes | U.S. Fleet Medium Term Notes Series 2009-2 Notes | U.S. Fleet Medium Term Notes Series 2010-1 Notes | U.S. Fleet Medium Term Notes Series 2010-1 Notes | U.S. Fleet Medium Term Notes Series 2010-1 Notes | U.S. Fleet Medium Term Notes Series 2011-1 Notes | U.S. Fleet Medium Term Notes Series 2011-1 Notes | U.S. Fleet Medium Term Notes Series 2011-1 Notes | RCFC Series 2010-3 Notes | RCFC Series 2010-3 Notes | RCFC Series 2010-3 Notes | RCFC Series 2011-1 Notes | RCFC Series 2011-1 Notes | RCFC Series 2011-1 Notes | RCFC Series 2011-2 Notes | RCFC Series 2011-2 Notes | RCFC Series 2011-2 Notes | Donlen GN II Variable Funding Note Facility | Donlen GN II Variable Funding Note Facility | Donlen GN II Variable Funding Note Facility | Other Fleet Debt | Other Fleet Debt | Other Fleet Debt | U.S. Fleet Financing Facility | U.S. Fleet Financing Facility | U.S. Fleet Financing Facility | European Revolving Credit Facility | European Revolving Credit Facility | European Revolving Credit Facility | European Fleet Notes | European Fleet Notes | European Fleet Notes | European Securitization | European Securitization | European Securitization | Canadian Securitization | Canadian Securitization | Canadian Securitization | Dollar Thrifty Sponsored Canadian Securitization | Dollar Thrifty Sponsored Canadian Securitization | Dollar Thrifty Sponsored Canadian Securitization | Australian Securitization | Australian Securitization | Australian Securitization | Brazilian Fleet Financing Facility | Brazilian Fleet Financing Facility | Brazilian Fleet Financing Facility | Capitalized Leases | Capitalized Leases | Capitalized Leases | Senior Notes | Senior Notes | Senior Notes | 8.875% Senior Notes due January 2014 | 8.875% Senior Notes due January 2014 | 7.875% Senior Notes due January 2014 | 7.875% Senior Notes due January 2014 | 7.875% Senior Notes due January 2014 | 7.50% Senior Notes due October 2018 | 7.50% Senior Notes due October 2018 | 7.50% Senior Notes due October 2018 | 7.375% Senior Notes due January 2021 | 7.375% Senior Notes due January 2021 | 7.375% Senior Notes due January 2021 | 6.75% Senior Notes due April 2019 | 6.75% Senior Notes due April 2019 | 6.75% Senior Notes due April 2019 | Senior Notes 5.875 Percent Due 2020 | Senior Notes 5.875 Percent Due 2020 | |||||||||||||||||||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | EUR (€) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | |||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short Term Borrowings Maximum Maturity Period | 3 months | 3 months | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Average Interest Rate (as a percent) | 3.26% | 3.75% | 2.89% | 2.47% | 6.96% | 6.96% | 3.51% | 4.40% | 1.04% | 1.11% | [1] | 5.37% | 5.11% | [1] | 3.77% | 3.77% | [1] | 2.86% | 2.86% | [1] | 1.03% | 2.81% | 3.21% | 1.00% | 1.15% | 2.95% | 3.27% | 2.67% | 2.86% | 8.50% | 8.50% | 2.50% | 2.48% | [1] | 2.14% | 2.16% | 2.13% | 2.13% | 4.17% | 4.61% | [1] | 13.89% | 13.07% | 4.08% | 4.40% | 6.58% | 6.74% | [2] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
8.875% Senior Notes due January 2014 | $1,419,000,000 | $0 | $2,114,800,000 | $2,125,500,000 | $1,389,500,000 | $1,005,800,000 | $195,000,000 | $0 | $48,700,000 | $48,700,000 | $224,700,000 | $58,500,000 | $88,700,000 | $49,600,000 | $2,590,000,000 | $2,350,000,000 | $1,345,000,000 | $2,590,000,000 | $2,350,000,000 | [1] | $1,000,000,000 | [1] | $0 | [1] | $170,000,000 | [1] | $0 | [1] | $175,000,000 | [1] | $3,105,300,000 | $2,443,700,000 | $2,732,100,000 | $807,500,000 | $1,095,900,000 | [1] | $1,384,300,000 | [1] | $749,800,000 | $749,800,000 | [1] | $749,800,000 | [1] | $598,000,000 | $598,000,000 | [1] | $598,000,000 | [1] | $540,000,000 | $519,000,000 | $0 | $500,000,000 | $500,000,000 | $0 | $400,000,000 | $400,000,000 | $0 | $943,800,000 | $899,300,000 | $811,200,000 | $2,184,100,000 | $1,791,300,000 | $171,000,000 | $166,000,000 | $136,000,000 | $357,900,000 | $185,300,000 | $200,600,000 | $520,500,000 | $529,400,000 | $517,700,000 | $363,000,000 | $242,200,000 | [1] | $256,200,000 | [1] | $124,200,000 | $100,500,000 | $68,300,000 | $76,400,000 | $55,300,000 | $0 | $119,700,000 | $148,900,000 | [1] | $169,300,000 | [1] | $13,000,000 | $14,000,000 | $23,100,000 | $429,600,000 | $337,600,000 | $363,700,000 | $3,900,000,000 | $3,650,000,000 | [2] | $2,638,600,000 | [2] | $0 | $162,300,000 | $0 | $276,300,000 | € 213,500,000 | $700,000,000 | $700,000,000 | $500,000,000 | $500,000,000 | $500,000,000 | $1,250,000,000 | $1,250,000,000 | $1,000,000,000 | $700,000,000 | $0 | |||||||||
Unamortized Net (Discount) Premium | 3,200,000 | 3,300,000 | -6,900,000 | 8,800,000 | 12,100,000 | -10,900,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | 17,394,200,000 | 15,014,474,000 | 10,907,849,000 | 7,131,000,000 | 6,111,200,000 | 4,295,500,000 | 10,263,200,000 | 8,903,300,000 | 6,612,300,000 | 1,791,300,000 | 1,724,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term Debt, Weighted Average Interest Rate | 2.10% | 1.80% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Short-term Borrowings | $6,741,100,000 | $5,718,700,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Covenant Fixed Charge Coverage Ratio Number of Quarters | 1 year | 1 year | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate (as a percent) | 8.50% | 8.88% | 7.88% | 7.50% | 7.50% | 7.38% | 7.38% | 6.75% | 6.75% | 5.88% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[1] | Maturity reference is to the "expected final maturity date" as opposed to the subsequent "legal maturity date." The expected final maturity date is the date by which Hertz and investors in the relevant indebtedness expect the relevant indebtedness to be repaid. The legal final maturity date is the date on which the relevant indebtedness is legally due and payable. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[2] | References to our "Senior Notes" include the series of Hertz's unsecured senior notes set forth in the table below. As of December 31, 2012 and December 31, 2011, the outstanding principal amount for each such series of the Senior Notes is also specified below. |
Debt_Details_2
Debt (Details 2) (USD $) | Jun. 30, 2013 | Dec. 31, 2012 | |
Aggregate amounts of maturities of debt for each of the twelve month periods | |||
2013 | $5,744,100 | [1] | |
2014 | 2,124,400,000 | 1,100,000 | |
2015 | 1,140,000,000 | 1,900,000 | |
2016 | 366,500,000 | 300,000 | |
2017 | 2,819,100,000 | 200,000 | |
Thereafter | $3,903,900,000 | $5,800,000 | |
[1] | Our short-term borrowings as of December 31, 2012 include, among other items, the amounts outstanding under the Senior ABL Facility, HVF U.S. Fleet Variable Funding Notes, RCFC U.S. Fleet Variable Funding Notes, Donlen GN II Variable Funding Notes, U.S. Fleet Financing Facility, European Revolving Credit Facility, European Securitization, Hertz-Sponsored Canadian Securitization, Dollar Thrifty-Sponsored Canadian Securitization, Australian Securitization, Brazilian Fleet Financing Facility and Capitalized Leases. These amounts are reflected as short-term borrowings, regardless of the facility maturity date, as these facilities are revolving in nature and/or the outstanding borrowings have maturities of three months or less. As of December 31, 2012, short-term borrowings had a weighted average interest rate of 1.8%. |
Debt_Details_3
Debt (Details 3) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 1 Months Ended | 1 Months Ended | 6 Months Ended | 12 Months Ended | 1 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 1 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | 30-May-13 | Aug. 31, 2012 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Mar. 31, 2011 | Mar. 31, 2012 | Mar. 31, 2012 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Mar. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | 30-May-13 | Dec. 31, 2012 | Oct. 31, 2012 | Jun. 30, 2012 | 31-May-12 | Mar. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2010 | Oct. 31, 2009 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jul. 31, 2010 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jul. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Oct. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Jul. 31, 2012 | Feb. 29, 2012 | Dec. 31, 2011 | Sep. 01, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Sep. 30, 2006 | Jun. 30, 2013 | 30-May-13 | 30-May-13 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2010 | Jun. 30, 2013 | 30-May-13 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2010 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2010 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Nov. 30, 2011 | Nov. 30, 2011 | 31-May-07 | Jun. 30, 2013 | Dec. 31, 2012 | Mar. 31, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Nov. 30, 2010 | Dec. 31, 2012 | Dec. 31, 2012 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Mar. 31, 2012 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Mar. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Mar. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Mar. 31, 2012 | Dec. 31, 2012 | Jun. 30, 2013 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Jun. 30, 2013 | Mar. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Mar. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Mar. 31, 2012 | Mar. 31, 2012 | |||||||||||||||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Corporate Debt | Corporate Debt | Senior credit facility | Senior credit facility | Senior Term Facility | Senior Term Facility | Senior Term Facility | Senior Term Facility | Senior ABL Facility | Senior ABL Facility | Senior ABL Facility | Senior ABL Facility | Senior ABL Facility | Senior ABL Facility | Fleet debt | Fleet debt | U.S. Fleet Variable Funding Notes | U.S. Fleet Variable Funding Notes | U.S. Fleet Variable Funding Notes | U.S. Fleet Variable Funding Notes Series 2009-1 | U.S. Fleet Variable Funding Notes Series 2009-1 | U.S. Fleet Variable Funding Notes Series 2009-1 | U.S. Fleet Variable Funding Notes Series 2009-1 | U.S. Fleet Variable Funding Notes Series 2009-1 | U.S. Fleet Variable Funding Notes Series 2009-1 | U.S. Fleet Variable Funding Notes Series 2009-1 | U.S. Fleet Variable Funding Notes Series 2009-1 | U.S. Fleet Medium Term Notes | U.S. Fleet Medium Term Notes | U.S. Fleet Medium Term Notes | U.S. Fleet Medium Term Notes Series 2009-2 Notes | U.S. Fleet Medium Term Notes Series 2009-2 Notes | U.S. Fleet Medium Term Notes Series 2009-2 Notes | U.S. Fleet Medium Term Notes Series 2009-2 Notes | U.S. Fleet Medium Term Notes Series 2009-2 Notes | U.S. Fleet Medium Term Notes Series 2010-1 Notes | U.S. Fleet Medium Term Notes Series 2010-1 Notes | U.S. Fleet Medium Term Notes Series 2010-1 Notes | U.S. Fleet Medium Term Notes Series 2010-1 Notes | U.S. Fleet Medium Term Notes Series 2011-1 Notes | U.S. Fleet Medium Term Notes Series 2011-1 Notes | U.S. Fleet Medium Term Notes Series 2011-1 Notes | U.S. Fleet Medium Term Notes Series 2011-1 Notes | RCFC Series 2010-3 Notes | RCFC Series 2010-3 Notes | RCFC Series 2010-3 Notes | RCFC Series 2011-1 Notes | RCFC Series 2011-1 Notes | RCFC Series 2011-1 Notes | RCFC Series 2011-1 Notes | RCFC Series 2011-2 Notes | RCFC Series 2011-2 Notes | RCFC Series 2011-2 Notes | RCFC Series 2011-2 Notes | Donlen GN II Variable Funding Note Facility | Donlen GN II Variable Funding Note Facility | Donlen GN II Variable Funding Note Facility | Donlen GN II Variable Funding Note Facility | Donlen GN II Variable Funding Note Facility | Donlen GN II Variable Funding Note Facility | Other Fleet Debt | Other Fleet Debt | U.S. Fleet Financing Facility | U.S. Fleet Financing Facility | U.S. Fleet Financing Facility | U.S. Fleet Financing Facility | U.S. Fleet Financing Facility | European Revolving Credit Facility | European Revolving Credit Facility | European Revolving Credit Facility | European Revolving Credit Facility | European Revolving Credit Facility | European Revolving Credit Facility | European Fleet Notes | European Fleet Notes | European Fleet Notes | European Fleet Notes | European Fleet Notes | European Securitization | European Securitization | European Securitization | European Securitization | Canadian Securitization | Canadian Securitization | Canadian Securitization | Canadian Securitization | Canadian Securitization | Canadian Securitization | Dollar Thrifty Sponsored Canadian Securitization | Dollar Thrifty Sponsored Canadian Securitization | Dollar Thrifty Sponsored Canadian Securitization | Dollar Thrifty Sponsored Canadian Securitization | Dollar Thrifty Sponsored Canadian Securitization | Australian Securitization | Australian Securitization | Australian Securitization | Australian Securitization | UK Leveraged Financing | UK Leveraged Financing | Senior Notes | Senior Notes | Senior Notes | 6.75% Senior Notes due April 2019 | 6.75% Senior Notes due April 2019 | 6.75% Senior Notes due April 2019 | 6.75% Senior Notes due April 2019 | 8.875% Senior Notes due January 2014 | 8.875% Senior Notes due January 2014 | 8.875% Senior Notes due January 2014 | 7.875% Senior Notes due January 2014 | 7.875% Senior Notes due January 2014 | 7.875% Senior Notes due January 2014 | 7.50% Senior Notes due October 2018 | 7.50% Senior Notes due October 2018 | 7.50% Senior Notes due October 2018 | Senior Notes 5.875 Percent Due 2020 | Senior Notes 5.875 Percent Due 2020 | Senior Notes 5.875 Percent Due 2020 | 7.375% Senior Notes due January 2021 | 7.375% Senior Notes due January 2021 | 7.375% Senior Notes due January 2021 | Senior Notes 6.250 Percent Due 2022 | Senior Notes 6.250 Percent Due 2022 | Senior Notes 6.250 Percent Due 2022 | Senior Notes 6.250 Percent Due 2022 | Letter of Credit [Member] | Letter of Credit [Member] | Letter of Credit [Member] | Letter of Credit [Member] | Letter of Credit [Member] | Letter of Credit [Member] | Letter of Credit [Member] | Letter of Credit [Member] | Maximum | Maximum | Maximum | Minimum | Minimum | Registration Statement Effective Period [Member] | Exchange Offer Period [Member] | Accrued Liabilities [Member] | Accrued Liabilities [Member] | Interest Expense [Member] | Interest Expense [Member] | |||||||||||||||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | EUR (€) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | EUR (€) | USD ($) | USD ($) | EUR (€) | USD ($) | GBP (£) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | EUR (€) | USD ($) | USD ($) | USD ($) | USD ($) | CAD | CAD | USD ($) | USD ($) | USD ($) | CAD | USD ($) | USD ($) | USD ($) | USD ($) | AUD | USD ($) | GBP (£) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | EUR (€) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Senior credit facility | Senior Term Facility | Senior Term Facility | Senior ABL Facility | Senior ABL Facility | Senior ABL Facility | Senior Term Facility | Senior ABL Facility | 6.75% Senior Notes due April 2019 | Senior ABL Facility | Senior ABL Facility | USD ($) | USD ($) | 8.875% Senior Notes due January 2014 | 7.875% Senior Notes due January 2014 | |||||||||||||||||||||||||||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
8.875% Senior Notes due January 2014 | $1,419,000,000 | $0 | $2,114,800,000 | $2,125,500,000 | $1,389,500,000 | $1,005,800,000 | $195,000,000 | $0 | $2,590,000,000 | $2,350,000,000 | $1,345,000,000 | $2,590,000,000 | $2,350,000,000 | [1] | $1,000,000,000 | [1] | $3,105,300,000 | $2,443,700,000 | $2,732,100,000 | $807,500,000 | $1,095,900,000 | [1] | $1,384,300,000 | [1] | $749,800,000 | $749,800,000 | [1] | $749,800,000 | [1] | $598,000,000 | $598,000,000 | [1] | $598,000,000 | [1] | $540,000,000 | $519,000,000 | $0 | $500,000,000 | $500,000,000 | $0 | $400,000,000 | $400,000,000 | $0 | $943,800,000 | $899,300,000 | $811,200,000 | $2,184,100,000 | $1,791,300,000 | $171,000,000 | $166,000,000 | $136,000,000 | $357,900,000 | $185,300,000 | $200,600,000 | $520,500,000 | $529,400,000 | $517,700,000 | $363,000,000 | $242,200,000 | [1] | $256,200,000 | [1] | $124,200,000 | $100,500,000 | $68,300,000 | $76,400,000 | $55,300,000 | $0 | $119,700,000 | $148,900,000 | [1] | $169,300,000 | [1] | $3,900,000,000 | $3,650,000,000 | [2] | $2,638,600,000 | [2] | $1,250,000,000 | $1,250,000,000 | $1,000,000,000 | $0 | $162,300,000 | $0 | $276,300,000 | € 213,500,000 | $700,000,000 | $700,000,000 | $700,000,000 | $0 | $500,000,000 | $500,000,000 | $500,000,000 | $500,000,000 | $500,000,000 | $0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term Debt, Weighted Average Interest Rate | 2.10% | 2.10% | 1.80% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding standby letters of credit | 638,000,000 | 626,600,000 | 664,400,000 | 681,400,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Aggregate maximum borrowings | 1,950,000,000 | 1,400,000,000 | 1,800,000,000 | 2,438,800,000 | 2,238,800,000 | 2,188,000,000 | 2,438,800,000 | 184,300,000 | 1,200,000,000 | 749,800,000 | 598,000,000 | 600,000,000 | 500,000,000 | 400,000,000 | 1,000,000,000 | 900,000,000 | 850,000,000 | 190,000,000 | 165,000,000 | 291,200,000 | 220,000,000 | 529,400,000 | 400,000,000 | 529,400,000 | 400,000,000 | 226,100,000 | 201,000,000 | 200,000,000 | 225,000,000 | 150,700,000 | 150,000,000 | 259,400,000 | 250,000,000 | 314,000,000 | 195,000,000 | 200,000,000 | 1,500,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted Net Assets of Subsidiaries as Percentage of Total Consolidated Net Assets Greater than | 25.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Increase in the credit agreement's borrowing capacity | 38,300,000 | 750,000,000 | 2,738,800,000 | 250,000,000 | 250,000,000 | 130,100,000 | 100,000,000 | 25,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restrictive Covenants, Cash Dividend to Parent as Percentage of Greater of Specified Amount and Consolidated Tangible Assets | 1.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restrictive Covenants Percentage of Net Income from 1, January 2011 Through most Recent Fiscal Quarter used for Calculation of Additional Cash Dividend to Parent | 50.00% | 50.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restrictive Covenants, Cash Dividend to Parent | 200,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restrictive Covenants, Additional Cash Dividend to Parent Borrowing Base Availability Required | 200,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restrictive Covenants, Additional Cash Dividend to Parent Borrowing Base Availability for which Compliance of Fixed Charge Coverage Ratio is Required | 400,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restrictive Covenants, Percentage of Tangible Assets used for Calculation of Cash Dividend to Parent | 1.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Additional aggregate principal issued | 250,000,000 | 700,000,000 | 700,000,000 | 500,000,000 | 500,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate (as a percent) | 8.50% | 6.75% | 6.75% | 8.88% | 7.88% | 7.50% | 7.50% | 5.88% | 7.38% | 7.38% | 6.25% | 6.25% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repayments of Debt | 286,000,000 | 213,500,000 | 162,300,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Write-off of unamortized debt costs | 1,200,000 | 2,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Covenant Compliance Period | 365 days | 395 days | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Special interest (as a percent) | 0.25% | 0.25% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Period of initial default per registration payment arrangement | 90 days | 90 days | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Increase in special interest during each subsequent 90 day period (as a percent) | 0.25% | 0.25% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Period of subsequent default per registration payment arrangement | 90 days | 90 days | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Increase in special interest (as a percent) | 0.50% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Availability Under Borrowing Base Limitation | 357,300,000 | 357,300,000 | 1,181,400,000 | 357,300,000 | 1,146,000,000 | 357,300,000 | 1,146,000,000 | 0 | 35,400,000 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 7,900,000 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 8,000,000 | 100,000 | 1,006,500,000 | 1,010,400,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets of variable interest entities | 579,300,000 | 579,300,000 | 440,800,000 | 456,300,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities of variable interest entities | 578,800,000 | 578,800,000 | 440,300,000 | 455,800,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | $170,200,000 | $139,300,000 | $333,500,000 | $288,800,000 | $597,788,000 | $650,254,000 | $726,539,000 | $86,400,000 | $85,700,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Covenant Fixed Charge Coverage Ratio | 1 | 1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[1] | Maturity reference is to the "expected final maturity date" as opposed to the subsequent "legal maturity date." The expected final maturity date is the date by which Hertz and investors in the relevant indebtedness expect the relevant indebtedness to be repaid. The legal final maturity date is the date on which the relevant indebtedness is legally due and payable. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[2] | References to our "Senior Notes" include the series of Hertz's unsecured senior notes set forth in the table below. As of December 31, 2012 and December 31, 2011, the outstanding principal amount for each such series of the Senior Notes is also specified below. |
Debt_Details_4
Debt (Details 4) (USD $) | Jun. 30, 2013 | Dec. 31, 2012 |
Debt Instrument [Line Items] | ||
Remaining Capacity | $1,125,200,000 | $2,267,200,000 |
Availability Under Borrowing Base Limitation | 357,300,000 | 1,181,400,000 |
Senior ABL Facility | ||
Debt Instrument [Line Items] | ||
Remaining Capacity | 357,300,000 | 1,183,700,000 |
Availability Under Borrowing Base Limitation | 357,300,000 | 1,146,000,000 |
Corporate Debt | ||
Debt Instrument [Line Items] | ||
Remaining Capacity | 357,300,000 | 1,183,700,000 |
Availability Under Borrowing Base Limitation | 357,300,000 | 1,146,000,000 |
U.S. Fleet Variable Funding Notes | ||
Debt Instrument [Line Items] | ||
Remaining Capacity | 148,800,000 | 88,800,000 |
Availability Under Borrowing Base Limitation | 0 | 0 |
RCFC US Fleet Variable Funding Notes | ||
Debt Instrument [Line Items] | ||
Remaining Capacity | 60,000,000 | 81,000,000 |
Availability Under Borrowing Base Limitation | 0 | 0 |
Donlen GN II Variable Funding Note Facility | ||
Debt Instrument [Line Items] | ||
Remaining Capacity | 60,000,000 | 105,000,000 |
Availability Under Borrowing Base Limitation | 0 | 0 |
U.S. Fleet Financing Facility | ||
Debt Instrument [Line Items] | ||
Remaining Capacity | 19,000,000 | 24,000,000 |
Availability Under Borrowing Base Limitation | 0 | 0 |
European Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Remaining Capacity | 58,500,000 | 105,900,000 |
Availability Under Borrowing Base Limitation | 0 | 7,900,000 |
European Securitization | ||
Debt Instrument [Line Items] | ||
Remaining Capacity | 157,400,000 | 287,200,000 |
Availability Under Borrowing Base Limitation | 0 | 0 |
Canadian Securitization | ||
Debt Instrument [Line Items] | ||
Remaining Capacity | 85,000,000 | 100,500,000 |
Availability Under Borrowing Base Limitation | 0 | 0 |
Dollar Thrifty Sponsored Canadian Securitization | ||
Debt Instrument [Line Items] | ||
Remaining Capacity | 66,900,000 | 95,500,000 |
Availability Under Borrowing Base Limitation | 0 | 0 |
Australian Securitization | ||
Debt Instrument [Line Items] | ||
Remaining Capacity | 112,300,000 | 110,500,000 |
Availability Under Borrowing Base Limitation | 0 | 0 |
Capitalized Leases | ||
Debt Instrument [Line Items] | ||
Remaining Capacity | 85,100,000 | |
Availability Under Borrowing Base Limitation | 27,500,000 | |
Fleet debt | ||
Debt Instrument [Line Items] | ||
Remaining Capacity | 767,900,000 | 1,083,500,000 |
Availability Under Borrowing Base Limitation | $0 | $35,400,000 |
Employee_Retirement_Benefits_D1
Employee Retirement Benefits (Details) (USD $) | 12 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2012 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 |
Minimum | Pension Benefits | Pension Benefits | Pension Benefits | Pension Benefits | Pension Benefits | Pension Benefits | Pension Benefits | U.S. Plan | U.S. Plan | U.S. Plan | U.S. Plan | Other Pension Plans, Defined Benefit [Member] | Other Pension Plans, Defined Benefit [Member] | Other Pension Plans, Defined Benefit [Member] | Pension Benefits - U.K. | Pension Benefits - U.K. | Key officer postretirement car benefit plan | Key officer postretirement car benefit plan | Defined Contribution Pension [Member] | Defined Contribution Pension [Member] | Equity [Member] | Equity [Member] | Fixed Income Funds [Member] | Fixed Income Funds [Member] | Cash and Cash Equivalents [Member] | Cash and Cash Equivalents [Member] | Cash and Cash Equivalents [Member] | Cash and Cash Equivalents [Member] | ||||
Maximum | Minimum | Minimum | Maximum | U.S. Plan | Pension Benefits - U.K. | U.S. Plan | Pension Benefits - U.K. | U.S. Plan | U.S. Plan | Pension Benefits - U.K. | Pension Benefits - U.K. | |||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||||||||||||||
Total fair value of pension plan assets | $498.40 | $423.20 | $365.90 | $169 | $149.20 | $8.30 | $11.60 | $12.90 | $11.60 | |||||||||||||||||||||||
Fixed Interest Rate, on Cash Balance Credits in Year 2012 and Later Years Percentage | 3.00% | |||||||||||||||||||||||||||||||
Defined Contribution Plan, Employer Match Percentage | 100.00% | |||||||||||||||||||||||||||||||
Percentage of employee contributions eligible for employer match | 8.00% | |||||||||||||||||||||||||||||||
Defined Contribution Plan, Employer Enhanced Match Period | 5 years | |||||||||||||||||||||||||||||||
Unamortized prior service cost | 13.1 | |||||||||||||||||||||||||||||||
Service period | 20 years | 20 years | ||||||||||||||||||||||||||||||
Retirement age | 58 years | 58 years | ||||||||||||||||||||||||||||||
Pension benefits included in AOCI | 109.8 | 109.8 | 99.6 | |||||||||||||||||||||||||||||
Provisions charged to income | 8.9 | 8 | 8.8 | |||||||||||||||||||||||||||||
Defined Contribution Plan, Cost Recognized | 18.6 | 18 | 14.8 | |||||||||||||||||||||||||||||
Defined Benefit Plan, Target Plan Asset Allocations | 65.00% | 79.00% | 35.00% | 9.00% | 12.00% | |||||||||||||||||||||||||||
Defined Benefit Plan, Expected Return on Plan Assets, Percent | 7.60% | 7.50% | ||||||||||||||||||||||||||||||
Company contributions | 6.9 | 38.4 | 11.8 | 10.6 | 32.2 | 58.9 | 46.3 | 67.8 | ||||||||||||||||||||||||
Defined Benefit Plan, Estimated Future Employer Contributions in Next Fiscal Year | 20 | |||||||||||||||||||||||||||||||
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year | $30 |
Employee_Retirement_Benefits_D2
Employee Retirement Benefits (Details 2) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
In Millions, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
U.S. Plan | |||||||
Change in Benefit Obligation [Roll Forward] | |||||||
Benefit obligation at the beginning of the year | $678.90 | $606.40 | $606.40 | $549.70 | |||
Service cost | 7.1 | 7 | 14.4 | 13.3 | 24.8 | 26.2 | 24 |
Interest cost | 6.9 | 7.4 | 13.6 | 13.9 | 28.2 | 27.5 | 26.1 |
Plan amendments | 0 | -10.2 | |||||
Plan settlements | -5.4 | -7.4 | |||||
Benefits paid | -29.9 | -18.4 | |||||
Actuarial loss (gain) | 54.8 | 39 | |||||
Benefit obligation at the end of the year | 678.9 | 606.4 | 549.7 | ||||
Change in Plan Assets [Roll Forward] | |||||||
Fair value of plan assets at the beginning of the year | 498.4 | 423.2 | 423.2 | 365.9 | |||
Actual return of plan assets | 64.2 | 15.3 | |||||
Company contributions | 46.3 | 67.8 | |||||
Plan settlements | -5.4 | -7.4 | |||||
Benefits paid | -29.9 | -18.4 | |||||
Fair value of plan assets at the end of the year | 498.4 | 423.2 | 365.9 | ||||
Defined Benefit Plan, Funded Status of Plan [Abstract] | |||||||
Pension and Other Postretirement Defined Benefit Plans, Liabilities | 180.5 | 183.2 | |||||
Pension Benefits - Non-U.S. | |||||||
Change in Benefit Obligation [Roll Forward] | |||||||
Benefit obligation at the beginning of the year | 224.4 | 190.8 | 190.8 | 201.5 | |||
Service cost | 0.7 | 0.3 | 1.3 | 0.6 | 1.9 | 4 | 5.2 |
Interest cost | 2.3 | 2.3 | 4.6 | 4.6 | 9.7 | 11 | 9.7 |
Employee contributions | 0.1 | 0.7 | |||||
Plan curtailments | 0 | -5.9 | |||||
Plan settlements | 0 | 0.1 | |||||
Benefits paid | -5.5 | -4 | |||||
Foreign exchange translation | 7.7 | -1 | |||||
Actuarial loss (gain) | 9.4 | -15.1 | |||||
Plan combination | 10.4 | 0 | |||||
Other | -0.1 | -0.5 | |||||
Benefit obligation at the end of the year | 224.4 | 190.8 | 201.5 | ||||
Change in Plan Assets [Roll Forward] | |||||||
Fair value of plan assets at the beginning of the year | 178.3 | 157 | 157 | 152.8 | |||
Actual return of plan assets | 15.6 | -7.6 | |||||
Company contributions | 4.7 | 16 | |||||
Employee contributions | 0.1 | 0.7 | |||||
Benefits paid | -5.5 | -4 | |||||
Foreign exchange translation | 6.5 | -0.7 | |||||
Other | -0.1 | -0.2 | |||||
Fair value of plan assets at the end of the year | 178.3 | 157 | 152.8 | ||||
Defined Benefit Plan, Funded Status of Plan [Abstract] | |||||||
Pension and Other Postretirement Defined Benefit Plans, Liabilities | 46.1 | 33.8 | |||||
Postretirement Benefits (U.S.) | |||||||
Change in Benefit Obligation [Roll Forward] | |||||||
Benefit obligation at the beginning of the year | 19 | 18.2 | 18.2 | 19 | |||
Service cost | 0 | 0.1 | 0.1 | 0.2 | 0.2 | 0.2 | 0.3 |
Interest cost | 0.1 | 0.2 | 0.3 | 0.4 | 0.8 | 0.9 | 0.9 |
Employee contributions | 0.8 | 0.9 | |||||
Benefits paid | -2.2 | -2.2 | |||||
Actuarial loss (gain) | 1.2 | -0.6 | |||||
Benefit obligation at the end of the year | 19 | 18.2 | 19 | ||||
Change in Plan Assets [Roll Forward] | |||||||
Company contributions | 1.4 | 1.3 | |||||
Employee contributions | 0.8 | 0.9 | |||||
Benefits paid | -2.2 | -2.2 | |||||
Defined Benefit Plan, Funded Status of Plan [Abstract] | |||||||
Pension and Other Postretirement Defined Benefit Plans, Liabilities | $19 | $18.20 |
Employee_Retirement_Benefits_D3
Employee Retirement Benefits (Details 3) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Estimated amounts that will be amortized from accumulated other comprehensive (income) loss over the next fiscal year: | |||||||
Net gain (loss) | ($13,694,000) | $4,021,000 | ($4,073,000) | ||||
Defined Benefit Plan, Effect of One-Percentage Point Change in Assumed Health Care Cost Trend Rates [Abstract] | |||||||
Effect on total of service and interest cost components, increase | 0 | ||||||
Effect on total of service and interest cost components, decrease | 0 | ||||||
U.S. Plan | |||||||
Amounts recognized in balance sheet: | |||||||
Pension and Other Postretirement Defined Benefit Plans, Liabilities | -180,500,000 | -183,200,000 | |||||
Prior service credit (cost) | 9,100,000 | 10,100,000 | |||||
Net gain (loss) | -167,600,000 | -160,300,000 | |||||
Accumulated other comprehensive income (loss) | -158,500,000 | -150,200,000 | |||||
Unfunded accrued pension or postretirement benefit | -22,000,000 | -33,000,000 | |||||
Net obligation recognized in the balance sheet | -180,500,000 | -183,200,000 | |||||
Total recognized in other comprehensive (income) loss | 8,300,000 | 34,500,000 | |||||
Total recognized in net periodic benefit cost and other comprehensive (income) loss | 43,500,000 | 67,100,000 | |||||
Estimated amounts that will be amortized from accumulated other comprehensive (income) loss over the next fiscal year: | |||||||
Net gain (loss) | -16,000,000 | -11,100,000 | |||||
Accumulated Benefit Obligation at December 31 | 619,200,000 | 537,000,000 | |||||
Weighted-average assumptions as of December 31 | |||||||
Discount rate (as a percent) | 4.00% | 4.70% | |||||
Expected return of assets (as a percent) | 7.60% | 8.00% | |||||
Average rate of increase in compensation (as a percent) | 4.60% | 4.60% | |||||
Components of Net Periodic Benefit Cost: | |||||||
Service cost | 7,100,000 | 7,000,000 | 14,400,000 | 13,300,000 | 24,800,000 | 26,200,000 | 24,000,000 |
Interest cost | 6,900,000 | 7,400,000 | 13,600,000 | 13,900,000 | 28,200,000 | 27,500,000 | 26,100,000 |
Expected return on plan assets | -7,500,000 | -8,000,000 | -15,000,000 | -15,300,000 | -31,500,000 | -30,500,000 | -26,600,000 |
Net amortizations | 4,000,000 | 3,200,000 | 8,300,000 | 6,000,000 | 11,800,000 | 7,200,000 | 4,600,000 |
Settlement loss | 2,000,000 | 2,200,000 | 400,000 | ||||
Curtailment gain | 0 | 0 | 0 | ||||
Net pension and postretirement expense | 10,500,000 | 9,600,000 | 21,300,000 | 17,900,000 | 35,300,000 | 32,600,000 | 28,500,000 |
Weighted average discount rate for expense (January 1) | 4.71% | 5.12% | 5.42% | ||||
Weighted average assumed long-term rate of return on assets (January 1) | 8.00% | 8.40% | 8.50% | ||||
Pension Benefits - Non-U.S. | |||||||
Amounts recognized in balance sheet: | |||||||
Pension and Other Postretirement Defined Benefit Plans, Liabilities | -46,100,000 | -33,800,000 | |||||
Prior service credit (cost) | 0 | 0 | |||||
Net gain (loss) | -17,500,000 | -10,700,000 | |||||
Accumulated other comprehensive income (loss) | -17,500,000 | -10,700,000 | |||||
Unfunded accrued pension or postretirement benefit | -28,600,000 | -23,100,000 | |||||
Net obligation recognized in the balance sheet | -46,100,000 | -33,800,000 | |||||
Total recognized in other comprehensive (income) loss | 6,800,000 | 12,200,000 | |||||
Total recognized in net periodic benefit cost and other comprehensive (income) loss | 6,100,000 | 900,000 | |||||
Estimated amounts that will be amortized from accumulated other comprehensive (income) loss over the next fiscal year: | |||||||
Net gain (loss) | -400,000 | 100,000 | |||||
Accumulated Benefit Obligation at December 31 | 216,800,000 | 187,600,000 | |||||
Weighted-average assumptions as of December 31 | |||||||
Discount rate (as a percent) | 4.30% | 4.80% | |||||
Expected return of assets (as a percent) | 7.40% | 7.40% | |||||
Average rate of increase in compensation (as a percent) | 2.00% | 2.10% | |||||
Components of Net Periodic Benefit Cost: | |||||||
Service cost | 700,000 | 300,000 | 1,300,000 | 600,000 | 1,900,000 | 4,000,000 | 5,200,000 |
Interest cost | 2,300,000 | 2,300,000 | 4,600,000 | 4,600,000 | 9,700,000 | 11,000,000 | 9,700,000 |
Expected return on plan assets | -3,200,000 | -3,000,000 | -6,300,000 | -6,000,000 | -12,100,000 | -12,800,000 | -10,000,000 |
Net amortizations | 100,000 | -100,000 | 200,000 | -100,000 | -100,000 | -700,000 | -1,000,000 |
Settlement loss | 0 | 0 | 0 | ||||
Curtailment gain | 0 | -12,900,000 | -200,000 | ||||
Special termination benefit cost | 100,000 | 0 | |||||
Net pension and postretirement expense | -100,000 | -500,000 | -200,000 | -900,000 | -600,000 | -11,300,000 | 3,700,000 |
Weighted average discount rate for expense (January 1) | 4.78% | 5.36% | 5.71% | ||||
Weighted average assumed long-term rate of return on assets (January 1) | 7.44% | 7.46% | 7.46% | ||||
Postretirement Benefits (U.S.) | |||||||
Amounts recognized in balance sheet: | |||||||
Pension and Other Postretirement Defined Benefit Plans, Liabilities | -19,000,000 | -18,200,000 | |||||
Prior service credit (cost) | 0 | 0 | |||||
Net gain (loss) | -2,300,000 | -1,200,000 | |||||
Accumulated other comprehensive income (loss) | -2,300,000 | -1,200,000 | |||||
Unfunded accrued pension or postretirement benefit | -16,700,000 | -17,000,000 | |||||
Net obligation recognized in the balance sheet | -19,000,000 | -18,200,000 | |||||
Total recognized in other comprehensive (income) loss | 1,100,000 | -700,000 | |||||
Total recognized in net periodic benefit cost and other comprehensive (income) loss | 2,100,000 | 500,000 | |||||
Estimated amounts that will be amortized from accumulated other comprehensive (income) loss over the next fiscal year: | |||||||
Net gain (loss) | -100,000 | -100,000 | |||||
Weighted-average assumptions as of December 31 | |||||||
Discount rate (as a percent) | 3.60% | 4.40% | |||||
Initial health care cost trend rate (as a percent) | 7.80% | 8.10% | |||||
Ultimate health care cost trend rate (as a percent) | 4.50% | 4.50% | |||||
Number of years to ultimate trend rate (in years) | 17 years | 18 years | |||||
Components of Net Periodic Benefit Cost: | |||||||
Service cost | 0 | 100,000 | 100,000 | 200,000 | 200,000 | 200,000 | 300,000 |
Interest cost | 100,000 | 200,000 | 300,000 | 400,000 | 800,000 | 900,000 | 900,000 |
Expected return on plan assets | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Net amortizations | 100,000 | 0 | 100,000 | 0 | 0 | 100,000 | 0 |
Settlement loss | 0 | 0 | 0 | ||||
Curtailment gain | 0 | 0 | 0 | ||||
Net pension and postretirement expense | 200,000 | 300,000 | 500,000 | 600,000 | 1,000,000 | 1,200,000 | 1,200,000 |
Weighted average discount rate for expense (January 1) | 4.40% | 4.90% | 5.40% | ||||
Initial health care cost trend rate (as a percent) | 8.10% | 8.40% | 8.70% | ||||
Ultimate health care cost trend rate (as a percent) | 4.50% | 4.50% | 4.50% | ||||
Number of years to ultimate health trend rate (in years) | 17 years | 18 years | 19 years | ||||
Defined Benefit Plan, Effect of One-Percentage Point Change in Assumed Health Care Cost Trend Rates [Abstract] | |||||||
Effect on postretirement benefit obligation, increase | 500 | ||||||
Effect on postretirement benefit obligation, decrease | ($400) |
Employee_Retirement_Benefits_D4
Employee Retirement Benefits (Details 4) (USD $) | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Millions, unless otherwise specified | |||
U.S. Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total fair value of pension plan assets | $498.40 | $423.20 | $365.90 |
Pension Benefits - U.K. | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total fair value of pension plan assets | 169 | 149.2 | |
Cash and Cash Equivalents [Member] | U.S. Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total fair value of pension plan assets | 8.3 | 11.6 | |
Cash and Cash Equivalents [Member] | Pension Benefits - U.K. | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total fair value of pension plan assets | 12.9 | 11.6 | |
US Large Cap Equity Securities | U.S. Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total fair value of pension plan assets | 135.9 | 119.3 | |
US Mid Cap Equity Securities | U.S. Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total fair value of pension plan assets | 42 | 34.9 | |
US Small Cap Equity Securities | U.S. Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total fair value of pension plan assets | 31.6 | 27.5 | |
International Larg Cap | U.S. Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total fair value of pension plan assets | 109.3 | 89 | |
US Treasuries | U.S. Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total fair value of pension plan assets | 67.5 | 53.2 | |
Corporate Bonds | U.S. Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total fair value of pension plan assets | 83.8 | 68.7 | |
Government Bonds | U.S. Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total fair value of pension plan assets | 4.4 | 4.1 | |
Municipal Bonds | U.S. Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total fair value of pension plan assets | 9.1 | 9.5 | |
Real Estate Bonds | U.S. Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total fair value of pension plan assets | 6.5 | 5.4 | |
U.K. Equities | Pension Benefits - U.K. | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total fair value of pension plan assets | 66.1 | 57.6 | |
Overseas Equities | Pension Benefits - U.K. | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total fair value of pension plan assets | 67.1 | 60.5 | |
UK Conventional Gilts | Pension Benefits - U.K. | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total fair value of pension plan assets | 6.5 | 6.6 | |
Foreign Overseas Corporate Bond Securities | Pension Benefits - U.K. | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total fair value of pension plan assets | 5.3 | 5 | |
Global Treasury Bonds | Pension Benefits - U.K. | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total fair value of pension plan assets | 9.3 | 6.5 | |
Index-Linked Gilts-Stocks | Pension Benefits - U.K. | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total fair value of pension plan assets | $1.80 | $1.40 |
Employee_Retirement_Benefits_D5
Employee Retirement Benefits (Details 5) (USD $) | 12 Months Ended | |||||
Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | ||||
Pension Benefits | ||||||
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | ||||||
2013 | $31,100,000 | |||||
2014 | 34,400,000 | |||||
2015 | 40,600,000 | |||||
2016 | 44,300,000 | |||||
2017 | 51,100,000 | |||||
2018-2022 | 314,100,000 | |||||
Total | 515,600,000 | |||||
Other Plans [Abstract] | ||||||
Aggregate period contributions | 7,500,000 | 7,200,000 | 6,700,000 | |||
Pension Benefits | Western Conference of Teamsters | ||||||
Other Plans [Abstract] | ||||||
Aggregate period contributions | 4,100,000 | 3,900,000 | 3,800,000 | |||
Pension Benefits | Teamsters Central States | ||||||
Other Plans [Abstract] | ||||||
Aggregate period contributions | 1,200,000 | 1,300,000 | 1,200,000 | |||
Pension Benefits | IAM National | ||||||
Other Plans [Abstract] | ||||||
Aggregate period contributions | 700,000 | 600,000 | 600,000 | |||
Pension Benefits | Midwest Operating Engineers | ||||||
Other Plans [Abstract] | ||||||
Aggregate period contributions | 500,000 | 400,000 | 200,000 | |||
Pension Benefits | Local 1034 | ||||||
Other Plans [Abstract] | ||||||
Aggregate period contributions | 200,000 | [1] | 200,000 | [1] | 200,000 | [1] |
Pension Benefits | Local 1034 | Minimum | ||||||
Other Plans [Abstract] | ||||||
Multiemployer Plan, Period Contributions, Percentage of Total Contributions to Pension Fund | 5.00% | |||||
Pension Benefits | Operating Engineers Local 324 | ||||||
Other Plans [Abstract] | ||||||
Aggregate period contributions | 100,000 | 100,000 | 100,000 | |||
Pension Benefits | Western Pennsylvania Teamsters | ||||||
Other Plans [Abstract] | ||||||
Aggregate period contributions | 100,000 | [2] | 100,000 | [2] | 100,000 | [2] |
Pension Benefits | 7 Other Plans | ||||||
Other Plans [Abstract] | ||||||
Aggregate period contributions | 600,000 | 600,000 | 500,000 | |||
Postretirement Benefits (U.S.) | ||||||
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | ||||||
2013 | 1,300,000 | |||||
2014 | 1,400,000 | |||||
2015 | 1,500,000 | |||||
2016 | 1,400,000 | |||||
2017 | 1,300,000 | |||||
2018-2022 | 6,700,000 | |||||
Total | $13,600,000 | |||||
[1] | The amount contributed by Hertz to the Local 1034 Pension Fund was reported as being more than 5% of total contributions to the plan, on the fund's Form 5500 for the year ended 12/31/2011. | |||||
[2] | The parties are still attempting to negotiate a successor agreement. |
StockBased_Compensation_Detail1
Stock-Based Compensation (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 6 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2010 | Feb. 28, 2008 | Dec. 31, 2012 | 31-May-13 | Nov. 30, 2012 | Mar. 31, 2012 | 30-May-13 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Mar. 31, 2011 | Mar. 31, 2011 | Dec. 31, 2012 | Nov. 30, 2012 | Nov. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Jun. 30, 2013 | Jun. 30, 2013 | Feb. 28, 2013 | Mar. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Aug. 31, 2012 | 31-May-12 | Mar. 31, 2012 | Mar. 31, 2012 | Mar. 31, 2012 | Mar. 31, 2012 | Mar. 31, 2012 | Mar. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | |
Price Vesting Units Pvu Subject to Market Condition | Restricted Stock Units | Restricted Stock Units | Restricted Stock Units | Restricted Stock Units | Stock Option | Stock Option | Stock Option | Stock Option | Stock Appreciation Rights (SARs) | Restricted Stock Units RSU and Performance Stock Units PSU | Restricted Stock Units RSU and Performance Stock Units PSU | Restricted Stock Units RSU and Performance Stock Units PSU | Performance Stock Units Psu Subject to Performance Condition | Performance Stock Units Psu Subject to Market Condition | Performance Stock Units Psu Subject to Market Condition | Non-Qualified Options | Dollar Thrifty Automotive Group Inc. | Prior Plans | Omnibus Plan | Omnibus Plan | Omnibus Plan | Omnibus Plan | Omnibus Plan | Omnibus Plan | Omnibus Plan | Price Vesting Units Pvu Subject to Market Condition | Employee Stock | Employee Stock | Employee Stock | Employee Stock | Employee Stock | Hertz Global Holdings [Member] | Hertz Global Holdings [Member] | Hertz Global Holdings [Member] | Hertz Global Holdings [Member] | Hertz Global Holdings [Member] | Hertz Global Holdings [Member] | Hertz Global Holdings [Member] | Hertz Global Holdings [Member] | Hertz Global Holdings [Member] | Hertz Global Holdings [Member] | Hertz Global Holdings [Member] | Hertz Global Holdings [Member] | ||||||||
Maximum | Maximum | Minimum | Restricted Stock Units | Restricted Stock Units | Restricted Stock Units RSU and Performance Stock Units PSU | Restricted Stock Units RSU and Performance Stock Units PSU | employee | Maximum | Minimum | Restricted Stock Units | Restricted Stock Units | Restricted Stock Units | Restricted Stock Units | Performance Stock Units P S U | Price Vesting Units | Price Vesting Units | Price Vesting Units | Performance Stock Units Psu Subject to Performance Condition | Performance Stock Units Psu Subject to Performance Condition | ||||||||||||||||||||||||||||||||
Maximum | Minimum | Maximum | Minimum | Maximum | Minimum | ||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation | |||||||||||||||||||||||||||||||||||||||||||||||||||
Award Vesting, Percentage after Year Three | 50.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||
Award Vesting, Percentage after Year Four | 50.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||
Number of shares authorized, reserved for issuance | 32,700,000 | 3,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||
Shares of common stock underlying awards outstanding | 17,400,000 | 8,000,000 | 9,400,000 | ||||||||||||||||||||||||||||||||||||||||||||||||
Number of shares available for grant | 16,900,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Granted (in shares) | 166,576 | 24,713 | 543,880 | 499,515 | 193,798 | 5,247 | 869,894,000 | 59,480 | 146,301 | 747,423 | 1,098,591 | ||||||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $13,780 | $14,780 | $10,100 | $13,780 | $12.12 | $15.48 | $14.47 | $13.65 | $13.65 | $11.26 | $10.13 | ||||||||||||||||||||||||||||||||||||||||
Weighted Average Outstanding | $13.15 | $23.80 | $19.95 | $12,620 | $6,460 | ||||||||||||||||||||||||||||||||||||||||||||||
Variation in number of units that will ultimately be granted as percentage of the original grant | 100.00% | 0.00% | 150.00% | 0.00% | |||||||||||||||||||||||||||||||||||||||||||||||
Appreciation of stock price over the grant date price for options vesting in third year (as a percent) | 15.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||
Appreciation of stock price over the grant date price for options vesting in fourth year (as a percent) | 25.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||
Number of days of average trailing stock price which must equal or exceed a certain price target during the performance period | 20 days | 20 days | 20 days | ||||||||||||||||||||||||||||||||||||||||||||||||
Unrecognized compensation cost related to non-vested stock options, RSUs and PSUs granted | $55,400,000 | $55,400,000 | $38,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||
Period for recognition of total unrecognized compensation cost | 1 year 8 months 13 days | 1 year 4 months 26 days | |||||||||||||||||||||||||||||||||||||||||||||||||
Award exercise price not less than fair market value of shares of common stock | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Expected term (years) | 3 years | 6 years 3 months | 6 years 3 months | 10 years | |||||||||||||||||||||||||||||||||||||||||||||||
Expected volatility rate top percentage of index universe in US Large Capitalization | 70.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||
Period for expected volatility rate daily historical closing values of index used | 6 years 3 months | ||||||||||||||||||||||||||||||||||||||||||||||||||
Share Based Compensation Arrangement by Share Based Payment Award, Fair Value Assumptions Expected Volatility Period | 5 years 9 months 15 days | ||||||||||||||||||||||||||||||||||||||||||||||||||
Expected dividend yield | 0.00% | 0.00% | 0.00% | 0.00% | |||||||||||||||||||||||||||||||||||||||||||||||
Number of common stock shares for each unit granted | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Award vesting period | 3 years | ||||||||||||||||||||||||||||||||||||||||||||||||||
Award vesting percentage in first year | 25.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||
Award vesting in second year | 25.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||
Award vesting in third year | 50.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||
Units to be awarded as percentage of original grant minimum | 0.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||
Units to be awarded as percentage of original grant, maximum | 150.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||
Award requisite service period | 5 years | ||||||||||||||||||||||||||||||||||||||||||||||||||
Shares per employee, aggregate fair market value | 25,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase price of common stock percent | 85.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation expense | $11,700,000 | $7,500,000 | $19,700,000 | $15,000,000 | $36,600,000 | $800,000 | $700,000 | $600,000 | $30,300,000 | $31,000,000 | |||||||||||||||||||||||||||||||||||||||||
Number of employees who participate in the plan | 1,800 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exchange Grants, Gross | 35,492 | 6,000 | |||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exchange Grants, Strike Price | $0.17 | $0.97 |
StockBased_Compensation_Detail2
Stock-Based Compensation (Details 2) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
In Millions, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2010 | Dec. 31, 2012 | Dec. 31, 2011 |
Hertz Global Holdings [Member] | Hertz Global Holdings [Member] | ||||||
Compensation Expense and Tax Benefit | |||||||
Compensation expense | $11.70 | $7.50 | $19.70 | $15 | $36.60 | $30.30 | $31 |
Stock-based employee compensation charges, tax | 4.5 | 2.9 | 7.6 | 5.8 | 14.2 | 11.7 | 12 |
Total | $7.20 | $4.60 | $12.10 | $9.20 | $22.40 | $18.60 | $19 |
StockBased_Compensation_Detail3
Stock-Based Compensation (Details 3) (USD $) | 12 Months Ended | ||
Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Stock-Based Compensation | |||
Expected dividend yield | 0.00% | ||
Stock Option | |||
Stock-Based Compensation | |||
Expected volatility | 81500.00% | 36700.00% | 36100.00% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Expected term (years) | 3 years | 6 years 3 months | 6 years 3 months |
Risk-free interest rate | 400.00% | 2560.00% | |
Weighted average grant date fair value | $14,620 | $5,930 | $4,000 |
StockBased_Compensation_Detail4
Stock-Based Compensation (Details 4) (Stock Incentive Plan and Omnibus Plan [Member], Stock Option, USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 |
Stock Incentive Plan and Omnibus Plan [Member] | Stock Option | ||
Options, Outstanding [Roll Forward] | ||
Outstanding at the beginning of the period (in shares) | 15,142,061,000 | |
Granted (Shares) | 35,492,000 | |
Exercised (Shares) | -1,740,447,000 | |
Forfeited or Expired (Shares) | -248,431,000 | |
Outstanding at the end of the period (in shares) | 13,188,675,000 | 15,142,061,000 |
Exercisable at December 31, 2012 (Shares) | 10,321,945,000 | |
Weighted Average Exercise Price [Roll Forward] | ||
Outstanding at the beginning of the period (in dollars per share) | $10,600 | |
Granted (In dollars per share) | $170 | |
Exercised (In dollars per share) | $5,750 | |
Forfeited or Expired (In dollars per share) | $14,660 | |
Outstanding at the end of the period (in dollars per share) | $11,130 | $10,600 |
Weighted Average Exerceise Price, Exercisable at December 31, 2012 (In dollars per share) | $10,830 | |
Additional Disclosures [Abstract] | ||
Outstanding at the beginning of the period | 5 years 4 months 24 days | 6 years 3 months 18 days |
Outstanding at the end of the period | 5 years 4 months 24 days | 6 years 3 months 18 days |
Weighted Average Remaining Contractural Term, Exercisable at Decebmer 31, 2012 | 4 years 8 months 12 days | |
Outstanding at the beginning of the period (in dollars) | $41,110 | |
Outstanding at the end of the period (in dollars) | 74,681 | 41,110 |
Aggregate Intrinsic Value, Exercisable at December 31, 2012 (In thousands of dollars) | $63,086 |
StockBased_Compensation_Detail5
Stock-Based Compensation (Details 5) (Stock Option, USD $) | 12 Months Ended | ||
Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Options Nonvested Weighted Average Grant Date Fair Value [Abstract] | |||
Granted (In dollars per share) | $14,620 | $5,930 | $4,000 |
Stock Incentive Plan and Omnibus Plan [Member] | |||
Non-vested Options, Outstanding [Roll Forward] | |||
Non-vested as of January 1, 2012 (Shares) | 4,915,825,000 | ||
Granted (Shares) | 35,492,000 | ||
Vested (Shares) | -1,959,032,000 | ||
Forfeited (Shares) | -125,555,000 | ||
Non-vested as of December 31, 2012 (Shares) | 2,866,730,000 | ||
Non-vested Optinos, Weighted Average Exercise Price [Roll Forward] | |||
Weighted Average Exercise Price, Non-vested as of January 1, 2012 | $12,040 | ||
Granted (In dollars per share) | $170 | ||
Vested (In dollars per share) | $11,560 | ||
Forfeited (In dollars per share) | $11,910 | ||
Weighted Average Exercise Price, Non-vested as of December 31, 2012 | $12,230 | ||
Options Nonvested Weighted Average Grant Date Fair Value [Abstract] | |||
Non-Vested Balance at January 1, 2012, Weighted Average Grant Date Fair Value (In dollars per share) | $4,860 | ||
Granted (In dollars per share) | $170 | ||
Vested (In dollars per share) | $4,590 | ||
Forfeited (In dollars per share) | $4,840 | ||
Non-Vested Balance at December31, 2012, Weighted Average Grant Date Fair Value (In dollars per share) | $4,980 |
StockBased_Compensation_Detail6
Stock-Based Compensation (Details 6) (Stock Option, USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Stock Option | |||
Stock-Based Compensation | |||
Aggregate intrinsic value of stock options exercised | $15.10 | $15 | $8.10 |
Proceeds from exercise of stock options | 11.2 | 13.1 | 7.9 |
Fair value of options that vested | 9 | 17.4 | 21.6 |
Tax benefit realized on exercise of stock options | $0.90 | $0.50 | $0.30 |
StockBased_Compensation_Detail7
Stock-Based Compensation (Details 7) (Restricted Stock Units RSU and Performance Stock Units PSU, USD $) | 12 Months Ended | ||
Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Weighted-Average Fair Value | |||
Granted (In dollars per share) | $13,780 | $14,780 | $10,100 |
Total fair value of awards that vested ($ millions) | $14,600 | $9,600 | $8,200 |
Omnibus Plan | |||
Options, Outstanding [Roll Forward] | |||
Nonvested at the beginning of the period (in shares) | 4,327,461,000 | ||
Granted (in shares) | 869,894,000 | ||
Vested (Shares) | -3,198,219,000 | ||
Forfeited or Expired (Shares) | -126,502,000 | ||
Nonvested at the end of the period (in shares) | 1,872,634,000 | ||
Weighted-Average Fair Value | |||
Nonvested at the beginning of the period (in dollars per share) | $6,460 | ||
Granted (In dollars per share) | $13,780 | ||
Vested (In dollars per share) | $4,580 | ||
Forfeited or Expired (In dollars per share) | $13,190 | ||
Nonvested at the end of the period (in dollars per share) | $12,620 | ||
Outstanding at January 1, 2012 Aggregate Intrinsic Value (In thousands of dollars) | 50,718,000 | ||
Outstanding at December 31, 2012 Aggregate Intrinsic Value (In thousands of dollars) | $30,468,000 |
StockBased_Compensation_Detail8
Stock-Based Compensation (Details 8) (Restricted Stock Units RSU and Performance Stock Units PSU, USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Weighted-Average Fair Value | |||
Granted (In dollars per share) | $13,780 | $14,780 | $10,100 |
Performance Stock Units Psu Subject to Market Condition | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Nonvested at the beginning of the period (in shares) | 678,000 | ||
Granted (in shares) | 1,846,014 | ||
Vested (Shares) | -125,000 | ||
Forfeited or Expired (Shares) | -100,000 | ||
Nonvested at the end of the period (in shares) | 2,299,000 | ||
Weighted-Average Fair Value | |||
Nonvested at the beginning of the period (in dollars per share) | $13,340 | ||
Granted (In dollars per share) | $11,890 | ||
Vested (In dollars per share) | $14,600 | ||
Forfeited or Expired (In dollars per share) | $11,870 | ||
Nonvested at the end of the period (in dollars per share) | $12,180 | ||
Outstanding at January 1, 2012 Aggregate Intrinsic Value (In thousands of dollars) | $7,946 | ||
Outstanding at December 31, 2012 Aggregate Intrinsic Value (In thousands of dollars) | $37,399 |
Depreciation_of_Revenue_Earnin6
Depreciation of Revenue Earning Equipment and Lease Charges (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Depreciation of Revenue Earning Equipment and Lease Charges | |||||||
Depreciation of revenue earning equipment | $611,800,000 | $539,500,000 | $1,184,800,000 | $1,070,900,000 | $2,165,200,000 | $1,921,800,000 | $1,747,000,000 |
Adjustment of depreciation upon disposal of revenue earning equipment | 11,300,000 | -41,200,000 | 10,000,000 | -80,600,000 | -96,800,000 | -112,200,000 | 42,900,000 |
Rents paid for vehicles leased | 18,000,000 | 21,500,000 | 33,300,000 | 44,600,000 | 79,800,000 | 96,100,000 | 78,200,000 |
Total | $641,100,000 | $519,800,000 | $1,228,100,000 | $1,034,900,000 | $2,148,158,000 | $1,905,739,000 | $1,868,147,000 |
Depreciation_of_Revenue_Earnin7
Depreciation of Revenue Earning Equipment and Lease Charges (Details 2) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Revenue earning equipment | |||||||
Net gains included in adjustment of depreciation upon disposal of revenue earning equipment | ($11,300,000) | $41,200,000 | ($10,000,000) | $80,600,000 | $96,800,000 | $112,200,000 | ($42,900,000) |
Net increase (decrease) in depreciation expenses | -130,600,000 | ||||||
Equipment Rental | |||||||
Revenue earning equipment | |||||||
Net gains included in adjustment of depreciation upon disposal of revenue earning equipment | 6,200,000 | 2,900,000 | 10,800,000 | 7,400,000 | 13,500,000 | 13,300,000 | -10,000,000 |
Net increase (decrease) in depreciation expenses | 100,000 | 0 | -500,000 | 4,400,000 | -3,600,000 | ||
Car Rental | |||||||
Revenue earning equipment | |||||||
Net gains included in adjustment of depreciation upon disposal of revenue earning equipment | -17,500,000 | 38,300,000 | -20,800,000 | 73,200,000 | 83,200,000 | 98,900,000 | -32,900,000 |
Net increase (decrease) in depreciation expenses | $14,800,000 | $15,500,000 | $13,800,000 | ($19,100,000) |
Taxes_on_Income_Details1
Taxes on Income (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest [Abstract] | ||||||||||||||
Income (Loss) from Continuing Operations before Income Taxes, Domestic | $407,700,000 | $235,900,000 | ($81,200,000) | |||||||||||
Income (Loss) from Continuing Operations before Income Taxes, Foreign | 95,200,000 | 138,000,000 | 113,500,000 | |||||||||||
Income (loss) before income taxes | 225,700,000 | -26,900,000 | 382,100,000 | 171,700,000 | -24,000,000 | 105,400,000 | 308,200,000 | 107,000,000 | -146,700,000 | 311,700,000 | 147,600,000 | 502,852,000 | 373,895,000 | 32,322,000 |
Current Income Tax Expense (Benefit), Continuing Operations [Abstract] | ||||||||||||||
Current Federal Tax Expense (Benefit) | 20,100,000 | 10,300,000 | 10,200,000 | |||||||||||
Current Foreign Tax Expense (Benefit) | 32,300,000 | 30,600,000 | 41,500,000 | |||||||||||
Current State and Local Tax Expense (Benefit) | 39,100,000 | 28,500,000 | 1,500,000 | |||||||||||
Current Income Tax Expense (Benefit) | 91,500,000 | 69,400,000 | 53,200,000 | |||||||||||
Deferred Income Tax Expense (Benefit), Continuing Operations [Abstract] | ||||||||||||||
Deferred Federal Income Tax Expense (Benefit) | 141,900,000 | 82,400,000 | -18,600,000 | |||||||||||
Deferred Foreign Income Tax Expense (Benefit) | 11,900,000 | -3,200,000 | 1,300,000 | |||||||||||
Deferred State and Local Income Tax Expense (Benefit) | -18,200,000 | -4,800,000 | -2,600,000 | |||||||||||
Deferred Income Tax Expense (Benefit) | 104,100,000 | 40,900,000 | 135,600,000 | 74,400,000 | -19,877,000 | |||||||||
Provision for taxes on income | 95,800,000 | 70,700,000 | 155,300,000 | 94,900,000 | 227,073,000 | 143,846,000 | 33,322,000 | |||||||
Deferred Tax Assets, Net [Abstract] | ||||||||||||||
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Employee Benefits | 103,600,000 | 102,800,000 | 103,600,000 | 102,800,000 | ||||||||||
Deferred Tax Assets, Operating Loss Carryforwards | 1,610,900,000 | 1,743,500,000 | 1,610,900,000 | 1,743,500,000 | ||||||||||
Deferred Tax Assets, Tax Credit Carryforwards, Foreign | 20,800,000 | 20,800,000 | 20,800,000 | 20,800,000 | ||||||||||
Deferred Tax Assets, Tax Credit Carryforwards, Other | 26,800,000 | 15,000,000 | 26,800,000 | 15,000,000 | ||||||||||
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals | 341,700,000 | 327,400,000 | 341,700,000 | 327,400,000 | ||||||||||
Deferred Tax Assets, Gross | 2,103,800,000 | 2,209,500,000 | 2,103,800,000 | 2,209,500,000 | ||||||||||
Deferred Tax Assets, Valuation Allowance | -226,400,000 | -186,700,000 | -226,400,000 | -186,700,000 | ||||||||||
Deferred Tax Assets, Net of Valuation Allowance | 1,877,400,000 | 2,022,800,000 | 1,877,400,000 | 2,022,800,000 | ||||||||||
Deferred Tax Liabilities, Gross [Abstract] | ||||||||||||||
Deferred Tax Liabilities, Property, Plant and Equipment | -3,081,400,000 | -2,742,300,000 | -3,081,400,000 | -2,742,300,000 | ||||||||||
Deferred Tax Liabilities, Intangible Assets | -1,477,100,000 | -942,400,000 | -1,477,100,000 | -942,400,000 | ||||||||||
Deferred Tax Liabilities, Gross | 2,786,800,000 | 4,558,500,000 | 3,684,700,000 | 2,786,800,000 | 4,558,500,000 | 3,684,700,000 | ||||||||
Deferred Tax Liabilities, Net | -2,681,140,000 | -1,661,872,000 | -2,681,140,000 | -1,661,872,000 | ||||||||||
Domestic Tax Authority [Member] | ||||||||||||||
Deferred Tax Assets, Net [Abstract] | ||||||||||||||
Deferred Tax Assets, Operating Loss Carryforwards | 1,294,300,000 | 1,294,300,000 | ||||||||||||
State and Local Jurisdiction [Member] | ||||||||||||||
Deferred Tax Assets, Net [Abstract] | ||||||||||||||
Deferred Tax Assets, Operating Loss Carryforwards | 105,800,000 | 105,800,000 | ||||||||||||
Foreign Tax Authority [Member] | ||||||||||||||
Deferred Tax Assets, Net [Abstract] | ||||||||||||||
Deferred Tax Assets, Operating Loss Carryforwards | $248,500,000 | $248,500,000 |
Taxes_on_Income_Details_2
Taxes on Income (Details 2) (USD $) | 0 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Jan. 02, 2009 | Jun. 30, 2013 | Jun. 30, 2012 | Mar. 31, 2012 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | |
Operating Loss Carryforwards [Line Items] | |||||||||
Unrecognized Tax Benefits | $17,200,000 | $21,600,000 | $27,200,000 | $25,600,000 | |||||
Effective Income Tax Rate, Continuing Operations | 42.40% | 41.20% | 64.30% | 49.80% | 45.20% | 38.50% | 103.10% | ||
Deferred Tax Assets, Operating Loss Carryforwards | 1,610,900,000 | 1,743,500,000 | |||||||
Period Considered for Determining Change in Control for Income Tax Purposes | 36 months | ||||||||
Deferred Tax Assets, Valuation Allowance | 226,400,000 | 186,700,000 | |||||||
Deferred Tax Assets, Net of Valuation Allowance | 1,877,400,000 | 2,022,800,000 | |||||||
Increase in Provision for Income Taxes | 83,300,000 | ||||||||
Undistributed Earnings of Foreign Subsidiaries | 270,300,000 | ||||||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | 6,800,000 | ||||||||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | 600,000 | 1,900,000 | 200,000 | ||||||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 4,200,000 | 3,700,000 | |||||||
Domestic Tax Authority [Member] | |||||||||
Operating Loss Carryforwards [Line Items] | |||||||||
Deferred Tax Assets, Operating Loss Carryforwards | 1,294,300,000 | ||||||||
Operating Loss Carryforwards, Net | 3,697,900,000 | ||||||||
Operating Loss Carryforwards | 3,775,000,000 | ||||||||
Operating Loss Carry forward Nondeductible Expense, Compensation and Benefits Share Based Compensation Cost | 77,100,000 | ||||||||
Operating Loss Carry Forward Unrecognized Excess Tax Benefit Related to Share Based Compensation Cost | 27,000,000 | ||||||||
State and Local Jurisdiction [Member] | |||||||||
Operating Loss Carryforwards [Line Items] | |||||||||
Deferred Tax Assets, Operating Loss Carryforwards | 105,800,000 | ||||||||
Tax Credit Carryforward, Deferred Tax Asset | 3,000,000 | ||||||||
Foreign Tax Authority [Member] | |||||||||
Operating Loss Carryforwards [Line Items] | |||||||||
Tax Credit Carryforward, Valuation Allowance | 13,500,000 | ||||||||
Deferred Tax Assets, Operating Loss Carryforwards | 248,500,000 | ||||||||
Operating Loss Carryforwards, Net | 1,049,000,000 | ||||||||
Operating Loss Carryforwards, Valuation Allowance | 200,600,000 | ||||||||
Operating Loss Carryforwards Not Subject to Expiration | 775,500,000 | ||||||||
Deferred Tax Assets, Operating Loss Carryforwards, Not Subject to Expiration | 170,600,000 | ||||||||
Operating Loss Carryforwards Subject to Expiration | 273,500,000 | ||||||||
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration | 77,900,000 | ||||||||
Tax Credit Carryforward, Deferred Tax Asset | $20,800,000 |
Taxes_on_Income_Details_3
Taxes on Income (Details 3) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
In Millions, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2012 | Mar. 31, 2012 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract] | |||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate | 35.00% | 35.00% | 35.00% | ||||
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential | -3.20% | -3.30% | -32.10% | ||||
Effective Income Tax Rate Reconciliation, State and Local Income Taxes | 2.90% | 3.20% | -5.20% | ||||
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate | -1.00% | 0.50% | 5.10% | ||||
Effective Income Tax Rate Reconciliation, Nondeductible Expense | 2.30% | -1.10% | -24.00% | ||||
Effective Income Tax Rate Reconciliation withholding Taxes | 1.70% | 2.00% | 26.20% | ||||
Effective Income Tax Rate Reconciliation, Tax Contingencies | -0.60% | -0.80% | 11.20% | ||||
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance | 7.90% | 0.60% | 85.10% | ||||
Effective Income Tax Rate Reconciliation, Other Adjustments | 0.20% | 2.40% | 1.80% | ||||
Effective Tax Rate (as a percent) | 42.40% | 41.20% | 64.30% | 49.80% | 45.20% | 38.50% | 103.10% |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||||||
Balance at the beginning of the period | $21.60 | $17.20 | $21.60 | $27.20 | $25.60 | ||
Unrecognized Tax Benefits, Increases Resulting from Prior Period Tax Positions | -6.8 | -9.5 | 0.3 | ||||
Unrecognized Tax Benefits, Increases Resulting from Current Period Tax Positions | 2.4 | 3.9 | 1.3 | ||||
Unrecognized Tax Benefits, Decreases Resulting from Settlements with Taxing Authorities | 0 | 0 | 0 | ||||
Balance at the end of the period | $17.20 | $21.60 | $27.20 |
Lease_and_Concession_Agreement2
Lease and Concession Agreements (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Lease and Concession Agreements | |||||||
Rents paid for vehicles leased | $18,000 | $21,500 | $33,300 | $44,600 | $79,800 | $96,100 | $78,200 |
Revenue earning equipment, office and computer equipment | |||||||
Lease and Concession Agreements | |||||||
Rents paid for vehicles leased | 92,000 | 106,200 | 88,600 | ||||
Minimum obligations under existing agreements | |||||||
Less than 1 Year | 56,600 | ||||||
2014 | 25,200 | ||||||
2015 | 6,700 | ||||||
2016 | 2,100 | ||||||
2017 | 0 | ||||||
After 2017 | 0 | ||||||
Revenue earning equipment | |||||||
Lease and Concession Agreements | |||||||
Rents paid for vehicles leased | 79,800 | 96,100 | 78,200 | ||||
Office and computer equipment | |||||||
Lease and Concession Agreements | |||||||
Rents paid for vehicles leased | 12,200 | 10,100 | 10,400 | ||||
Concession agreements and real estate leases | |||||||
Concession fees: | |||||||
Total | 714,900 | 691,100 | 664,600 | ||||
Minimum obligations under existing agreements | |||||||
Minimum future sublease rental inflows reduced from future minimum rent payments | -21,200 | ||||||
Concession agreements and real estate leases | Maximum | |||||||
Minimum obligations under existing agreements | |||||||
Lease period of premises under operating leases | 25 years | ||||||
Rents | |||||||
Lease and Concession Agreements | |||||||
Rents paid for vehicles leased | 135,900 | 130,600 | 133,900 | ||||
Concession fees: | |||||||
Sublease income that reduced rent expense | 5,000 | 5,000 | 4,500 | ||||
Minimum obligations under existing agreements | |||||||
Less than 1 Year | 157,300 | ||||||
2014 | 128,700 | ||||||
2015 | 99,300 | ||||||
2016 | 74,700 | ||||||
2017 | 50,400 | ||||||
After 2017 | 194,100 | ||||||
Concessions | |||||||
Concession fees: | |||||||
Minimum fixed obligations | 249,600 | 248,700 | 252,000 | ||||
Additional amounts, based on revenues | 329,400 | 311,800 | 278,700 | ||||
Minimum obligations under existing agreements | |||||||
Less than 1 Year | 390,300 | ||||||
2014 | 279,400 | ||||||
2015 | 192,800 | ||||||
2016 | 141,400 | ||||||
2017 | 91,300 | ||||||
After 2017 | $509,700 |
Segment_Information_Details1
Segment Information (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | ||||
segment | |||||||||||||||||
Segment Information | |||||||||||||||||
Number of reportable segments | 2 | ||||||||||||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||||||||||||||
Revenues | $2,714,600,000 | $2,318,600,000 | $2,516,200,000 | $2,225,100,000 | $1,960,900,000 | $2,013,800,000 | $2,432,300,000 | $2,072,300,000 | $1,780,000,000 | $5,151,200,000 | $4,186,100,000 | $9,020,807,000 | $8,298,380,000 | $7,562,534,000 | |||
Income (loss) before income taxes | 225,700,000 | -26,900,000 | 382,100,000 | 171,700,000 | -24,000,000 | 105,400,000 | 308,200,000 | 107,000,000 | -146,700,000 | 311,700,000 | 147,600,000 | 502,852,000 | 373,895,000 | 32,322,000 | |||
Depreciation of revenue earning equipment and lease charges | 641,100,000 | 519,800,000 | 1,228,100,000 | 1,034,900,000 | 2,148,158,000 | 1,905,739,000 | 1,868,147,000 | ||||||||||
Depreciation of property and equipment | 101,800,000 | 85,500,000 | 172,582,000 | 158,009,000 | 154,031,000 | ||||||||||||
Amortization of other intangible assets | 30,200,000 | 19,800,000 | 60,700,000 | 39,000,000 | 84,096,000 | 70,039,000 | 64,713,000 | ||||||||||
Interest expense | 170,200,000 | 139,300,000 | 333,500,000 | 288,800,000 | 597,788,000 | 650,254,000 | 726,539,000 | ||||||||||
Total assets | 25,930,900,000 | 23,290,209,000 | 17,667,332,000 | 25,930,900,000 | 23,290,209,000 | 17,667,332,000 | |||||||||||
Revenue earning equipment, net | 15,706,000,000 | 12,908,336,000 | 10,105,409,000 | 15,706,000,000 | 12,908,336,000 | 10,105,409,000 | |||||||||||
Property and equipment, net | 1,465,600,000 | 1,436,386,000 | 1,251,854,000 | 1,465,600,000 | 1,436,386,000 | 1,251,854,000 | |||||||||||
Senior Subordinated Notes | |||||||||||||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||||||||||||||
Interest rate (as a percent) | 10.50% | 10.50% | |||||||||||||||
8.875% Senior Notes due January 2014 | |||||||||||||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||||||||||||||
Interest rate (as a percent) | 8.88% | 8.88% | |||||||||||||||
Car Rental | |||||||||||||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||||||||||||||
Revenues | 2,329,500,000 | 1,889,600,000 | 4,414,300,000 | 3,547,900,000 | 7,633,000,000 | 7,083,500,000 | 6,486,200,000 | ||||||||||
Income (loss) before income taxes | 363,000,000 | 277,400,000 | 571,400,000 | 369,000,000 | 1,020,100,000 | 850,200,000 | [1] | 641,900,000 | [1] | ||||||||
Depreciation of revenue earning equipment and lease charges | 1,876,100,000 | 1,651,400,000 | 1,594,600,000 | ||||||||||||||
Depreciation of property and equipment | 126,900,000 | 116,100,000 | 112,300,000 | ||||||||||||||
Amortization of other intangible assets | 41,700,000 | 32,700,000 | 30,200,000 | ||||||||||||||
Interest expense | 316,300,000 | 333,100,000 | 401,300,000 | ||||||||||||||
Payments to Acquire Revenue Earning Equipment and Productive Assets | 9,118,300,000 | 9,109,900,000 | 8,430,100,000 | ||||||||||||||
Proceeds from Sale of Revenue Earning Equipment and Productive Assets | -7,054,400,000 | -7,689,400,000 | -7,432,700,000 | ||||||||||||||
Payments for (Proceeds from) Productive Assets | 2,063,900,000 | 1,420,500,000 | 997,400,000 | ||||||||||||||
Total assets | 18,454,200,000 | 13,037,900,000 | 18,454,200,000 | 13,037,900,000 | |||||||||||||
Revenue earning equipment, net | 10,710,100,000 | 8,318,700,000 | 10,710,100,000 | 8,318,700,000 | |||||||||||||
Property and equipment, net | 1,111,300,000 | 971,300,000 | 1,111,300,000 | 971,300,000 | |||||||||||||
Equipment Rental | |||||||||||||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||||||||||||||
Revenues | 384,300,000 | 335,000,000 | 735,400,000 | 637,100,000 | 1,385,400,000 | 1,209,500,000 | 1,070,100,000 | ||||||||||
Income (loss) before income taxes | 74,100,000 | 42,500,000 | 119,900,000 | 68,400,000 | 227,000,000 | 161,600,000 | [1] | 78,000,000 | [1] | ||||||||
Depreciation of revenue earning equipment and lease charges | 272,100,000 | 254,300,000 | 273,500,000 | ||||||||||||||
Depreciation of property and equipment | 34,100,000 | 33,700,000 | 34,300,000 | ||||||||||||||
Amortization of other intangible assets | 40,600,000 | 35,800,000 | 33,400,000 | ||||||||||||||
Interest expense | 52,000,000 | 45,300,000 | 39,400,000 | ||||||||||||||
Payments to Acquire Revenue Earning Equipment and Productive Assets | 787,600,000 | 617,500,000 | 186,100,000 | ||||||||||||||
Proceeds from Sale of Revenue Earning Equipment and Productive Assets | -192,300,000 | -213,800,000 | -124,300,000 | ||||||||||||||
Payments for (Proceeds from) Productive Assets | 595,300,000 | 403,700,000 | 61,800,000 | ||||||||||||||
Total assets | 3,623,000,000 | 3,058,900,000 | 3,623,000,000 | 3,058,900,000 | |||||||||||||
Revenue earning equipment, net | 2,198,200,000 | 1,786,700,000 | 2,198,200,000 | 1,786,700,000 | |||||||||||||
Property and equipment, net | 235,900,000 | 203,700,000 | 235,900,000 | 203,700,000 | |||||||||||||
Total reportable segment | |||||||||||||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||||||||||||||
Revenues | 2,713,800,000 | 2,224,600,000 | 5,149,700,000 | 4,185,000,000 | |||||||||||||
Income (loss) before income taxes | 437,100,000 | 319,900,000 | 691,300,000 | 437,400,000 | 1,247,100,000 | 1,011,800,000 | 719,900,000 | ||||||||||
Other reconciling items | |||||||||||||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||||||||||||||
Revenues | 2,400,000 | 5,400,000 | 6,200,000 | ||||||||||||||
Income (loss) before income taxes | -116,200,000 | -79,800,000 | -219,500,000 | -161,700,000 | -320,500,000 | [2] | -306,200,000 | [2] | -347,900,000 | [2] | |||||||
Depreciation of property and equipment | 11,600,000 | 8,200,000 | 7,400,000 | ||||||||||||||
Amortization of other intangible assets | 1,800,000 | 1,500,000 | 1,100,000 | ||||||||||||||
Interest expense | 229,500,000 | 271,900,000 | 285,800,000 | ||||||||||||||
Payments to Acquire Revenue Earning Equipment and Productive Assets | 20,100,000 | 8,600,000 | 3,900,000 | ||||||||||||||
Proceeds from Sale of Revenue Earning Equipment and Productive Assets | -16,100,000 | -1,000,000 | -300,000 | ||||||||||||||
Payments for (Proceeds from) Productive Assets | 4,000,000 | 7,600,000 | 3,600,000 | ||||||||||||||
Total assets | 1,213,000,000 | 1,570,500,000 | 1,213,000,000 | 1,570,500,000 | |||||||||||||
Property and equipment, net | 89,200,000 | 76,900,000 | 89,200,000 | 76,900,000 | |||||||||||||
Purchase accounting | |||||||||||||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||||||||||||||
Income (loss) before income taxes | -33,100,000 | -29,000,000 | -66,800,000 | -53,000,000 | -109,600,000 | -87,600,000 | -90,300,000 | ||||||||||
Non Cash debt charges | |||||||||||||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||||||||||||||
Income (loss) before income taxes | -12,100,000 | -13,900,000 | -22,100,000 | -32,600,000 | -56,400,000 | -105,900,000 | -160,600,000 | ||||||||||
Restructuring charges | |||||||||||||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||||||||||||||
Income (loss) before income taxes | -17,600,000 | -16,100,000 | -21,300,000 | -22,800,000 | -38,000,000 | -56,400,000 | -54,700,000 | ||||||||||
Restructuring related charges | |||||||||||||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||||||||||||||
Income (loss) before income taxes | -8,600,000 | -5,000,000 | -12,800,000 | -8,300,000 | -11,100,000 | [3] | -9,800,000 | [3] | -13,200,000 | [3] | |||||||
Derivative gains (losses) | |||||||||||||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||||||||||||||
Income (loss) before income taxes | -100,000 | 0 | -11,700,000 | -11,400,000 | -900,000 | [4] | 100,000 | [4] | -3,200,000 | [4] | |||||||
Acquisition related costs | |||||||||||||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||||||||||||||
Income (loss) before income taxes | -9,100,000 | -4,500,000 | -5,400,000 | 0 | -163,700,000 | -18,800,000 | -17,700,000 | ||||||||||
Management transition costs | |||||||||||||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||||||||||||||
Income (loss) before income taxes | -9,200,000 | 0 | -20,000,000 | 0 | 0 | -4,000,000 | 0 | ||||||||||
Pension Costs [Member] | |||||||||||||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||||||||||||||
Income (loss) before income taxes | 0 | 13,100,000 | 0 | ||||||||||||||
Premiums Paid on Debt [Member] | |||||||||||||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||||||||||||||
Income (loss) before income taxes | 0 | [5] | -62,400,000 | [5] | 0 | [5] | |||||||||||
United States | |||||||||||||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||||||||||||||
Revenues | 6,313,400,000 | 5,413,300,000 | 4,993,700,000 | ||||||||||||||
Total assets | 18,140,900,000 | 12,724,400,000 | 18,140,900,000 | 12,724,400,000 | |||||||||||||
Revenue earning equipment, net | 10,221,300,000 | 7,621,200,000 | 10,221,300,000 | 7,621,200,000 | |||||||||||||
Property and equipment, net | 1,226,100,000 | 1,036,700,000 | 1,226,100,000 | 1,036,700,000 | |||||||||||||
International | |||||||||||||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||||||||||||||
Revenues | 2,707,400,000 | 2,885,100,000 | 2,568,800,000 | ||||||||||||||
Total assets | 5,149,300,000 | 4,942,900,000 | 5,149,300,000 | 4,942,900,000 | |||||||||||||
Revenue earning equipment, net | 2,687,000,000 | 2,484,200,000 | 2,687,000,000 | 2,484,200,000 | |||||||||||||
Property and equipment, net | 210,300,000 | 215,200,000 | 210,300,000 | 215,200,000 | |||||||||||||
Other Income (Expense) [Member] | |||||||||||||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||||||||||||||
Income (loss) before income taxes | -44,000,000 | 0 | 0 | ||||||||||||||
Car Rental | |||||||||||||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||||||||||||||
Income (loss) before income taxes | 1,020,100,000 | [1] | |||||||||||||||
Equipment Rental | |||||||||||||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||||||||||||||
Income (loss) before income taxes | $227,000,000 | [1] | |||||||||||||||
[1] | The following table reconciles adjusted pre-tax income to income (loss) before income taxes for the years ended December 31, 2012, 2011 and 2010 (in millions of dollars): | ||||||||||||||||
[2] | Represents general corporate expenses, certain interest expense (including net interest on corporate debt), as well as other business activities. | ||||||||||||||||
[3] | Represents incremental costs incurred directly supporting our business transformation initiatives. Such costs include transition costs incurred in connection with our business process outsourcing arrangements and incremental costs incurred to facilitate business process re-engineering initiatives that involve significant organization redesign and extensive operational process changes. | ||||||||||||||||
[4] | Represents the mark-to-market adjustment on our interest rate cap. | ||||||||||||||||
[5] | Represents premiums paid to redeem our 10.5% Senior Subordinated Notes and a portion of our 8.875% Senior Notes. |
Contingencies_and_OffBalance_S3
Contingencies and Off-Balance Sheet Commitments (Details) (USD $) | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2012 |
California Tourism Assessments [Member] | Hertz Equipment Rental Corporation [Member] | ||||
Telephone Consumer Protection Act [Member] | |||||
Loss Contingencies [Line Items] | |||||
Public liability and property damage | $327,500,000 | $332,232,000 | $281,534,000 | ||
Period Prior to Filing of Claim During which Advertising Materials were Sent to Plaintiff without Consent | 4 years | ||||
Percentage of Tourism Assessment Alleged to be Charged to Consumers | 2.50% | ||||
Accrual for Environmental Loss Contingencies | $2,600,000 | $2,600,000 | $1,500,000 |
Restructuring_Details1
Restructuring (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 60 Months Ended | 72 Months Ended | 78 Months Ended | |||||||
In Millions, unless otherwise specified | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2008 | Dec. 31, 2011 | Dec. 31, 2012 | Jun. 30, 2013 |
employee | employee | employee | employee | employee | |||||||||
Restructuring details | |||||||||||||
Number of employees impacted | 50 | 650 | 515 | 9,610 | 8,960 | ||||||||
Restructuring charges incurred to date | $568.40 | $589.70 | |||||||||||
Restructuring charges | 17.6 | 16.1 | 21.3 | 22.8 | 38 | 56.4 | 54.7 | ||||||
Restructuring reserve | |||||||||||||
Balance at beginning of period | 21 | 21 | 21.6 | 21.6 | 17.5 | ||||||||
Charges incurred | 21.3 | 38 | 56.4 | ||||||||||
Cash payments | -20 | -26.8 | -18.4 | ||||||||||
Other | -3.5 | -11.8 | -33.9 | ||||||||||
Balance at end of period | 18.8 | 21 | 18.8 | 21 | 21.6 | 17.5 | 21.6 | 21 | 18.8 | ||||
Car Rental | |||||||||||||
Restructuring details | |||||||||||||
Number of off-airport locations closed | 250 | ||||||||||||
Restructuring charges incurred to date | 282.7 | 301.6 | |||||||||||
Restructuring charges | 15.8 | 11.8 | 18.9 | 15.3 | 26.4 | 16.6 | 18.1 | ||||||
Equipment Rental | |||||||||||||
Restructuring details | |||||||||||||
Number of branches in U.S. equipment rental segment closed | 22 | ||||||||||||
Restructuring charges incurred to date | 230.3 | 231.6 | |||||||||||
Restructuring charges | 0.8 | 2.6 | 1.3 | 5.8 | 8.8 | 40.5 | 34.7 | ||||||
Other | |||||||||||||
Restructuring details | |||||||||||||
Restructuring charges incurred to date | 55.4 | 56.5 | |||||||||||
Other reconciling items | |||||||||||||
Restructuring details | |||||||||||||
Restructuring charges | 1 | 1.7 | 1.1 | 1.7 | 2.8 | -0.7 | 1.9 | ||||||
Direct Operating Expense [Member] | |||||||||||||
Restructuring details | |||||||||||||
Restructuring charges | 22.6 | 46.6 | 43.5 | ||||||||||
Selling, general and administrative | |||||||||||||
Restructuring details | |||||||||||||
Restructuring charges | 15.4 | 9.8 | 11.2 | ||||||||||
Termination benefits | |||||||||||||
Restructuring details | |||||||||||||
Restructuring charges | 15.2 | 13.5 | 17.4 | 16.2 | 26.2 | 14.4 | 12.2 | ||||||
Expected duration for payment of restructuring obligations (in months) | 12 years | 12 years | |||||||||||
Restructuring reserve | |||||||||||||
Balance at beginning of period | 12.4 | 12.4 | 9.1 | 9.1 | 6.3 | ||||||||
Charges incurred | 17.4 | 26.2 | 14.4 | ||||||||||
Cash payments | -17.4 | -22.6 | -15.5 | ||||||||||
Other | -0.3 | -0.3 | 3.9 | ||||||||||
Balance at end of period | 12.1 | 12.4 | 12.1 | 12.4 | 9.1 | 6.3 | 9.1 | 12.4 | 12.1 | ||||
Pension and Post Retirement expense | |||||||||||||
Restructuring details | |||||||||||||
Restructuring charges | 1 | 0.4 | 0.4 | ||||||||||
Restructuring reserve | |||||||||||||
Balance at beginning of period | 0.2 | 0.2 | 0.2 | 0.2 | 0.2 | ||||||||
Charges incurred | 0 | 1 | 0.4 | ||||||||||
Cash payments | -0.2 | 0 | 0 | ||||||||||
Other | 0 | -1 | -0.4 | ||||||||||
Balance at end of period | 0 | 0.2 | 0 | 0.2 | 0.2 | 0.2 | 0.2 | 0.2 | 0 | ||||
Consultant costs | |||||||||||||
Restructuring details | |||||||||||||
Restructuring charges | 0.5 | 0.4 | 0.8 | 0.6 | 1.2 | 1.3 | 1.1 | ||||||
Restructuring reserve | |||||||||||||
Balance at beginning of period | 0.3 | 0.3 | 0.6 | 0.6 | 0.1 | ||||||||
Charges incurred | 0.8 | 1.2 | 1.3 | ||||||||||
Cash payments | -0.9 | -0.9 | -0.6 | ||||||||||
Other | 0 | -0.6 | -0.2 | ||||||||||
Balance at end of period | 0.2 | 0.3 | 0.2 | 0.3 | 0.6 | 0.1 | 0.6 | 0.3 | 0.2 | ||||
Asset writedowns | |||||||||||||
Restructuring details | |||||||||||||
Restructuring charges | 0 | 23.2 | 20.4 | ||||||||||
Facility closure and lease obligation costs | |||||||||||||
Restructuring details | |||||||||||||
Restructuring charges | 1.9 | 2.2 | 3.1 | 6 | 8.9 | 16.5 | 14.3 | ||||||
Facility closures | |||||||||||||
Restructuring reserve | |||||||||||||
Other | 3.2 | -10.3 | -13.9 | ||||||||||
Relocation costs and temporary labor costs | |||||||||||||
Restructuring details | |||||||||||||
Restructuring charges | 0.4 | 0.6 | 5 | ||||||||||
Other | |||||||||||||
Restructuring details | |||||||||||||
Restructuring charges | 0.3 | 0 | 1.3 | ||||||||||
Restructuring reserve | |||||||||||||
Balance at beginning of period | 8.1 | 8.1 | 11.7 | 11.7 | 10.9 | ||||||||
Charges incurred | 3.1 | 9.6 | 40.3 | ||||||||||
Cash payments | -1.5 | -3.3 | -2.3 | ||||||||||
Other | -3.2 | -9.9 | -37.2 | ||||||||||
Balance at end of period | 6.5 | 8.1 | 6.5 | 8.1 | 11.7 | 10.9 | 11.7 | 8.1 | 6.5 | ||||
FAS 88 | |||||||||||||
Restructuring reserve | |||||||||||||
Other | -1 | -0.4 | |||||||||||
Involuntary Benefits | |||||||||||||
Restructuring reserve | |||||||||||||
Other | 3.8 | ||||||||||||
Impairment in Value of Assets [Member] | |||||||||||||
Restructuring reserve | |||||||||||||
Other | ($23.20) |
Financial_Instruments_Details1
Financial Instruments (Details) (USD $) | 6 Months Ended | 12 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2011 | |
Interest rate caps | Interest rate caps | Foreign exchange forward contracts | Foreign exchange forward contracts | Foreign exchange options | Foreign exchange options | Level 2 | Level 2 | Level 2 | Level 3 | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | |||||
Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Total | Total | Total | Total | Total | Total | Total | Total | Total | Total | Total | Total | Total | Total | Total | |||||||||||||||
Gasoline swaps | Gasoline swaps | Interest rate caps | Interest rate caps | Interest rate caps | Interest rate caps | Interest rate caps | Interest rate caps | Foreign exchange forward contracts | Foreign exchange forward contracts | Foreign exchange forward contracts | Foreign exchange forward contracts | Foreign exchange forward contracts | Foreign exchange forward contracts | Foreign exchange options | Foreign exchange options | Foreign exchange options | Foreign exchange options | Foreign exchange options | Foreign exchange options | Interest rate swaps | Interest rate swaps | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | ||||||||||||||||||||||||
Gasoline swaps | Gasoline swaps | Interest rate caps | Interest rate caps | Interest rate caps | Foreign exchange forward contracts | Foreign exchange forward contracts | Foreign exchange forward contracts | Foreign exchange options | Foreign exchange options | Foreign exchange options | Gasoline swaps | Gasoline swaps | Interest rate caps | Interest rate caps | Interest rate caps | Foreign exchange forward contracts | Foreign exchange forward contracts | Foreign exchange forward contracts | Foreign exchange options | Foreign exchange options | Foreign exchange options | Interest rate swaps | Gasoline swaps | Gasoline swaps | Interest rate caps | Interest rate caps | Interest rate caps | Foreign exchange forward contracts | Foreign exchange forward contracts | Foreign exchange forward contracts | Foreign exchange options | Foreign exchange options | Foreign exchange options | Gasoline swaps | Gasoline swaps | Interest rate caps | Interest rate caps | Interest rate caps | Foreign exchange forward contracts | Foreign exchange forward contracts | Foreign exchange forward contracts | Foreign exchange options | Foreign exchange options | Foreign exchange options | Interest rate swaps | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Derivative Instruments | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset Derivatives | $5,500,000 | $4,500,000 | $600,000 | $900,000 | $4,800,000 | $3,400,000 | $100,000 | $200,000 | $5,500,000 | $5,500,000 | $4,500,000 | $5,000,000 | $0 | $0 | $600,000 | $600,000 | $900,000 | $500,000 | $4,800,000 | $4,800,000 | $3,400,000 | $4,400,000 | $100,000 | $100,000 | $200,000 | $100,000 | $0 | $0 | $0 | $0 | $33,200,000 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $5,500,000 | $4,500,000 | $5,000,000 | $600,000 | $900,000 | $500,000 | $4,800,000 | $3,400,000 | $4,400,000 | $100,000 | $200,000 | $100,000 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $5,500,000 | $4,500,000 | $38,200,000 | $600,000 | $900,000 | $500,000 | $4,800,000 | $3,400,000 | $4,400,000 | $100,000 | $200,000 | $100,000 | |||||||||||||||||||||||||||
Liability Derivatives | 3,400,000 | 5,500,000 | 600,000 | 900,000 | 1,900,000 | 4,500,000 | 3,400,000 | 3,400,000 | 5,500,000 | 2,900,000 | 100,000 | 400,000 | 600,000 | 600,000 | 900,000 | 400,000 | 1,900,000 | 1,900,000 | 4,500,000 | 1,900,000 | 0 | 0 | 0 | 0 | 0 | 200,000 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 3,400,000 | 5,500,000 | 2,900,000 | 100,000 | 400,000 | 600,000 | 900,000 | 400,000 | 1,900,000 | 4,500,000 | 1,900,000 | 200,000 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 3,400,000 | 5,500,000 | 100,000 | 400,000 | 600,000 | 900,000 | 400,000 | 1,900,000 | 4,500,000 | 1,900,000 | 200,000 | ||||||||||||||||||||||||||||||||
Amount of Gain or (Loss) Recognized in Income on Derivatives | 8,470,000 | 0 | 0 | -9,600,000 | -11,000,000 | -3,700,000 | -7,100,000 | -15,500,000 | -8,600,000 | 700,000 | 2,600,000 | 0 | -100,000 | 100,000 | -100,000 | -800,000 | 0 | -7,100,000 | -7,700,000 | -2,900,000 | -5,600,000 | -15,400,000 | -11,000,000 | 0 | 100,000 | -100,000 | 100,000 | 0 | -200,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Marketable Securities | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale marketable equity securities included in prepaid expenses and other assets at fair value | 132,000,000 | 33,200,000 | 0 | 0 | 33,200,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Maximum initial maturity period of borrowings | 90 days | 90 days | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Aggregate fair value of all debt | 17,699,000,000 | 15,529,400,000 | 11,092,400,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Aggregate carrying value of all debt | $1,419,000,000 | $0 | $17,382,200,000 | $14,999,100,000 | $10,925,600,000 |
Related_Party_Transactions_Det1
Related Party Transactions (Details) (USD $) | 1 Months Ended | 12 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 3 Months Ended | 1 Months Ended | |||||||||||||
31-May-13 | Mar. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Aug. 31, 2012 | Dec. 31, 2011 | Mar. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2011 | Jun. 29, 2007 | 31-May-09 | Mar. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2011 | Oct. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2011 | Mar. 31, 2011 | Dec. 31, 2005 | |
Investment Funds Associated with or Designated by Clayton Dubilier and Rice Inc | Hertz Holdings | Hertz Holdings | Clayton Dubilier and Rice Inc and the Carlyle Group Affiliated Investment Funds | Goldmans, Sachs and Co | Investment Funds Associated with or Designated by The Carlyle Group | Investment Funds Associated with or Designated by BAML Capital Partners | Director | Director | Lead Director [Member] | Chairperson of Audit Committee | Member of Audit Committee | Chairperson of Compensation Committee | Member of Compensation Committee | JP Morgan | Maximum | ||||||||
nominee | nominee | nominee | Investment Funds Associated with or Designated by Investors Group | ||||||||||||||||||||
request | |||||||||||||||||||||||
Related Party Transactions | |||||||||||||||||||||||
Number of Nominees | 2 | 1 | 1 | ||||||||||||||||||||
Number of Nominee Directors who shall Serve as Chairman or Lead Director | 1 | ||||||||||||||||||||||
Outstanding debt with related parties | $189,800,000 | $174,400,000 | |||||||||||||||||||||
Aggregate maximum borrowings | 1,950,000,000 | 100,000,000 | |||||||||||||||||||||
Due from Hertz affiliates | 12,809,000 | 800,000 | 0 | ||||||||||||||||||||
Borrowings outstanding | 400,000 | ||||||||||||||||||||||
Subscription Agreements Number of Common Stock Shares to be Issued | 32,101,182 | ||||||||||||||||||||||
Subscription Agreements Common Stock Shares to be Issued Issue Price Per Share | $6.23 | ||||||||||||||||||||||
Subscription Agreements Proceeds Receivable from Issuance of Common Stock | 200,000,000 | ||||||||||||||||||||||
Stock Issued During Period, Shares, New Issues | 32,101,182 | ||||||||||||||||||||||
Common stock shares sold | 49,800,405,000 | 60,050,777 | 50,000,000 | 50,000,000 | 50,000,000 | ||||||||||||||||||
Investors Group Ownership Percentage | 26.00% | ||||||||||||||||||||||
Number of Nominee Directors who Shall Serve as Chairman of Executive and Governance Committee and Chairman of the Board of Directors or Lead Director | 1 | ||||||||||||||||||||||
Registration Rights Agreement Exercise of Rights to Register Securities for Public Resale Number of Requests | 3 | ||||||||||||||||||||||
Director Compensation Policy Annual Retainer Fee | 170,000 | 210,000 | |||||||||||||||||||||
Director Compensation Policy Annual Retainer Fee Payable in Cash | 70,000 | 85,000 | |||||||||||||||||||||
Director Compensation Policy Annual Retainer Fee Payable in Shares | 100,000 | 125,000 | |||||||||||||||||||||
Director Compensation Policy Annual Cash Fee Paid | $100,000 | $35,000 | $17,500 | $35,000 | $17,500 |
Quarterly_Financial_Informatio2
Quarterly Financial Information (Unaudited) (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||
In Thousands, unless otherwise specified | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Quarterly Financial Data [Abstract] | ||||||||||||||
Revenues | $2,714,600 | $2,318,600 | $2,516,200 | $2,225,100 | $1,960,900 | $2,013,800 | $2,432,300 | $2,072,300 | $1,780,000 | $5,151,200 | $4,186,100 | $9,020,807 | $8,298,380 | $7,562,534 |
Income (loss) before income taxes | 225,700 | -26,900 | 382,100 | 171,700 | -24,000 | 105,400 | 308,200 | 107,000 | -146,700 | 311,700 | 147,600 | 502,852 | 373,895 | 32,322 |
Net loss attributable to The Hertz Corporation and Subsidiaries' common stockholder | $129,900 | ($28,300) | $251,300 | $101,000 | ($48,200) | $58,800 | $212,600 | $62,100 | ($123,000) | $156,400 | $52,700 | $275,779 | $210,489 | ($18,383) |
Guarantor_and_NonGuarantor_Con8
Guarantor and Non-Guarantor Condensed Consolidating Financial Statements (Details) (USD $) | 6 Months Ended | ||||||
In Thousands, unless otherwise specified | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 |
Condensed Financial Statements, Captions [Line Items] | |||||||
Parent's ownership percentage in Guarantor Subsidiaries | 100.00% | ||||||
ASSETS | |||||||
Cash and cash equivalents | $483,000 | $533,235 | $586,000 | $586,000 | $931,208 | $2,374,006 | $985,467 |
Restricted cash and cash equivalents | 393,200 | 571,634 | 308,039 | ||||
Receivables, less allowance for doubtful accounts | 1,656,000 | 1,886,596 | 1,616,382 | ||||
Due from Hertz affiliate | 800 | 12,809 | 0 | ||||
Inventories, at lower of cost or market | 128,300 | 105,728 | 83,978 | ||||
Prepaid expenses and other assets | 763,200 | 461,502 | 416,134 | ||||
Revenue earning equipment, net | 15,706,000 | 12,908,336 | 10,105,409 | ||||
Property and equipment, net | 1,465,600 | 1,436,386 | 1,251,854 | ||||
Investment in subsidiaries, net | 0 | 0 | 0 | ||||
Other intangible assets, net | 3,968,500 | 4,032,111 | 2,562,234 | ||||
Goodwill | 1,366,300 | 1,341,872 | 392,094 | 328,600 | |||
Total assets | 25,930,900 | 23,290,209 | 17,667,332 | ||||
LIABILITIES AND EQUITY | |||||||
Due to Hertz affiliate | 0 | 0 | 412 | ||||
Accounts payable | 1,484,500 | 999,061 | 897,489 | ||||
Accrued liabilities | 1,182,300 | 1,178,460 | 1,126,338 | ||||
Accrued taxes | 183,600 | 167,314 | 162,984 | ||||
Debt | 17,394,200 | 15,014,474 | 10,907,849 | ||||
Public liability and property damage | 327,500 | 332,232 | 281,534 | ||||
Deferred taxes on income | 2,786,800 | 4,558,500 | 3,684,700 | ||||
Deferred income tax liability | 2,681,140 | 1,661,872 | |||||
Total liabilities | 23,358,900 | 20,372,681 | 15,038,478 | ||||
Equity: | |||||||
The Hertz Corporation and Subsidiaries stockholder's equity | 2,572,000 | 2,917,509 | 2,628,835 | ||||
Noncontrolling interest | 0 | 19 | 19 | ||||
Total equity | 2,572,000 | 2,917,528 | 2,628,854 | 2,502,429 | 2,461,948 | ||
Total liabilities and equity | 25,930,900 | 23,290,209 | 17,667,332 | ||||
Parent | |||||||
ASSETS | |||||||
Cash and cash equivalents | 87,500 | 24,602 | 265,600 | 565,002 | 1,754,378 | 108,522 | |
Restricted cash and cash equivalents | 33,700 | 32,681 | 44,663 | ||||
Receivables, less allowance for doubtful accounts | 500,800 | 544,454 | 297,292 | ||||
Due from Hertz affiliate | 1,042,700 | 1,047,986 | 655,411 | ||||
Inventories, at lower of cost or market | 30,800 | 24,422 | 22,440 | ||||
Prepaid expenses and other assets | 2,894,700 | 2,570,539 | 2,088,579 | ||||
Revenue earning equipment, net | 175,300 | 104,207 | 167,304 | ||||
Property and equipment, net | 897,600 | 865,694 | 824,381 | ||||
Investment in subsidiaries, net | 6,833,100 | 6,964,916 | 4,413,289 | ||||
Other intangible assets, net | 70,200 | 74,606 | 94,682 | ||||
Goodwill | 106,200 | 106,210 | 100,221 | ||||
Total assets | 12,672,600 | 12,360,317 | 9,273,264 | ||||
LIABILITIES AND EQUITY | |||||||
Due to Hertz affiliate | 2,097,100 | 2,254,223 | 1,251,347 | ||||
Accounts payable | 165,200 | 239,247 | 188,695 | ||||
Accrued liabilities | 642,700 | 605,680 | 607,673 | ||||
Accrued taxes | 60,300 | 54,357 | 54,559 | ||||
Debt | 7,042,300 | 6,190,040 | 4,434,274 | ||||
Public liability and property damage | 93,000 | 99,261 | 107,881 | ||||
Deferred taxes on income | 0 | ||||||
Deferred income tax liability | 0 | 0 | |||||
Total liabilities | 10,100,600 | 9,442,808 | 6,644,429 | ||||
Equity: | |||||||
The Hertz Corporation and Subsidiaries stockholder's equity | 2,572,000 | 2,917,509 | 2,628,835 | ||||
Noncontrolling interest | 0 | 0 | 0 | ||||
Total equity | 2,572,000 | 2,917,509 | 2,628,835 | 2,485,927 | 2,444,655 | ||
Total liabilities and equity | 12,672,600 | 12,360,317 | 9,273,264 | ||||
Guarantor Subsidiaries | |||||||
ASSETS | |||||||
Cash and cash equivalents | 24,500 | 2,578 | 4,000 | 7,385 | 5,158 | 6,043 | |
Restricted cash and cash equivalents | 17,000 | 14,535 | 28,130 | ||||
Receivables, less allowance for doubtful accounts | 482,100 | 292,467 | 218,754 | ||||
Due from Hertz affiliate | 1,842,700 | 59,181 | 65,972 | ||||
Inventories, at lower of cost or market | 39,800 | 34,101 | 26,541 | ||||
Prepaid expenses and other assets | 244,300 | 183,573 | 32,974 | ||||
Revenue earning equipment, net | 1,893,000 | 1,734,325 | 1,505,867 | ||||
Property and equipment, net | 315,100 | 206,332 | 170,874 | ||||
Investment in subsidiaries, net | 1,367,900 | 506,123 | 460,201 | ||||
Other intangible assets, net | 3,848,100 | 2,352,342 | 2,363,617 | ||||
Goodwill | 1,035,600 | 133,923 | 67,228 | ||||
Total assets | 11,110,100 | 5,519,480 | 4,947,543 | ||||
LIABILITIES AND EQUITY | |||||||
Due to Hertz affiliate | 2,498,800 | 628,275 | 266,604 | ||||
Accounts payable | 267,900 | 157,742 | 165,258 | ||||
Accrued liabilities | 242,200 | 84,992 | 209,263 | ||||
Accrued taxes | 33,900 | 11,511 | 134,186 | ||||
Debt | 68,500 | 49,445 | 4,237 | ||||
Public liability and property damage | 58,500 | 10,390 | 14,025 | ||||
Deferred taxes on income | 2,232,700 | 2,205,600 | |||||
Deferred income tax liability | 1,776,199 | 1,449,171 | |||||
Total liabilities | 5,402,500 | 2,718,554 | 2,242,744 | ||||
Equity: | |||||||
The Hertz Corporation and Subsidiaries stockholder's equity | 5,707,600 | 2,800,926 | 2,704,799 | ||||
Noncontrolling interest | 0 | 0 | 0 | ||||
Total equity | 5,707,600 | 2,800,926 | 2,704,799 | ||||
Total liabilities and equity | 11,110,100 | 5,519,480 | 4,947,543 | ||||
Non-Guarantor Subsidiaries | |||||||
ASSETS | |||||||
Cash and cash equivalents | 371,000 | 506,055 | 316,400 | 358,821 | 614,470 | 870,902 | |
Restricted cash and cash equivalents | 342,500 | 524,418 | 235,246 | ||||
Receivables, less allowance for doubtful accounts | 719,300 | 1,049,675 | 1,100,336 | ||||
Due from Hertz affiliate | 3,691,700 | 2,199,247 | 1,194,041 | ||||
Inventories, at lower of cost or market | 57,700 | 47,205 | 34,997 | ||||
Prepaid expenses and other assets | 407,200 | 203,678 | 137,189 | ||||
Revenue earning equipment, net | 13,637,700 | 11,069,804 | 8,432,238 | ||||
Property and equipment, net | 252,900 | 364,360 | 256,599 | ||||
Other intangible assets, net | 50,200 | 1,605,163 | 103,935 | ||||
Goodwill | 224,500 | 1,101,739 | 224,645 | ||||
Total assets | 19,754,700 | 18,671,344 | 12,078,047 | ||||
LIABILITIES AND EQUITY | |||||||
Due to Hertz affiliate | 1,980,400 | 411,107 | 397,885 | ||||
Accounts payable | 1,051,400 | 602,072 | 543,536 | ||||
Accrued liabilities | 343,600 | 487,788 | 309,402 | ||||
Accrued taxes | 1,335,000 | 1,003,127 | -13,889 | ||||
Debt | 10,283,400 | 8,774,989 | 6,469,338 | ||||
Public liability and property damage | 176,000 | 222,581 | 159,628 | ||||
Deferred taxes on income | 2,091,500 | 2,070,100 | |||||
Deferred income tax liability | 2,499,548 | 2,043,437 | |||||
Total liabilities | 17,261,300 | 14,001,212 | 9,909,337 | ||||
Equity: | |||||||
The Hertz Corporation and Subsidiaries stockholder's equity | 2,493,400 | 4,670,113 | 2,168,691 | ||||
Noncontrolling interest | 0 | 19 | 19 | ||||
Total equity | 2,493,400 | 4,670,132 | 2,168,710 | ||||
Total liabilities and equity | 19,754,700 | 18,671,344 | 12,078,047 | ||||
Eliminations | |||||||
ASSETS | |||||||
Cash and cash equivalents | 0 | 0 | 0 | 0 | 0 | 0 | |
Restricted cash and cash equivalents | 0 | 0 | 0 | ||||
Receivables, less allowance for doubtful accounts | -46,200 | 0 | 0 | ||||
Due from Hertz affiliate | -6,576,300 | -3,293,605 | -1,915,424 | ||||
Inventories, at lower of cost or market | 0 | 0 | 0 | ||||
Prepaid expenses and other assets | -2,783,000 | -2,496,288 | -1,842,608 | ||||
Revenue earning equipment, net | 0 | 0 | 0 | ||||
Property and equipment, net | 0 | 0 | 0 | ||||
Investment in subsidiaries, net | -8,201,000 | -7,471,039 | -4,873,490 | ||||
Other intangible assets, net | 0 | 0 | 0 | ||||
Goodwill | 0 | 0 | 0 | ||||
Total assets | -17,606,500 | -13,260,932 | -8,631,522 | ||||
LIABILITIES AND EQUITY | |||||||
Due to Hertz affiliate | -6,576,300 | -3,293,605 | -1,915,424 | ||||
Accounts payable | 0 | 0 | 0 | ||||
Accrued liabilities | -46,200 | 0 | 0 | ||||
Accrued taxes | -1,245,600 | -901,681 | -11,872 | ||||
Debt | 0 | 0 | 0 | ||||
Public liability and property damage | 0 | 0 | 0 | ||||
Deferred taxes on income | -1,537,400 | -1,594,600 | |||||
Deferred income tax liability | -1,594,607 | -1,830,736 | |||||
Total liabilities | -9,405,500 | -5,789,893 | -3,758,032 | ||||
Equity: | |||||||
The Hertz Corporation and Subsidiaries stockholder's equity | -8,201,000 | -7,471,039 | -4,873,490 | ||||
Noncontrolling interest | 0 | 0 | 0 | ||||
Total equity | -8,201,000 | -7,471,039 | -4,873,490 | ||||
Total liabilities and equity | ($17,606,500) | ($13,260,932) | ($8,631,522) |
Guarantor_and_NonGuarantor_Con9
Guarantor and Non-Guarantor Condensed Consolidating Financial Statements (Details 2) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||
In Thousands, unless otherwise specified | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | ||||||||||||||
Total revenues | $2,714,600 | $2,318,600 | $2,516,200 | $2,225,100 | $1,960,900 | $2,013,800 | $2,432,300 | $2,072,300 | $1,780,000 | $5,151,200 | $4,186,100 | $9,020,807 | $8,298,380 | $7,562,534 |
Expenses: | ||||||||||||||
Direct operating | 1,405,900 | 1,188,900 | 2,757,100 | 2,303,100 | 4,795,788 | 4,566,378 | 4,283,394 | |||||||
Depreciation of revenue earning equipment and lease charges | 641,100 | 519,800 | 1,228,100 | 1,034,900 | 2,148,158 | 1,905,739 | 1,868,147 | |||||||
Selling, general and administrative | 274,800 | 206,600 | 526,300 | 414,300 | 945,581 | 745,117 | 664,442 | |||||||
Interest Income (Expense), Net | 592,886 | 644,703 | 714,224 | |||||||||||
Interest income | -2,000 | -500 | -3,800 | -1,600 | -4,902 | -5,551 | -12,315 | |||||||
Other (income) expense, net | -1,100 | -600 | -1,700 | -1,000 | 35,542 | 62,548 | 5 | |||||||
Total expenses | 2,488,900 | 2,053,500 | 4,839,500 | 4,038,500 | 8,517,955 | 7,924,485 | 7,530,212 | |||||||
Income before income taxes | 225,700 | -26,900 | 382,100 | 171,700 | -24,000 | 105,400 | 308,200 | 107,000 | -146,700 | 311,700 | 147,600 | 502,852 | 373,895 | 32,322 |
Provision for taxes on income | -95,800 | -70,700 | -155,300 | -94,900 | -227,073 | -143,846 | -33,322 | |||||||
Equity in earnings (losses) of subsidiaries (net of tax) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||
Net income | 129,900 | 100,900 | 52,700 | 156,400 | 275,779 | 230,049 | -1,000 | |||||||
Less: Net income attributable to noncontrolling interest | 0 | -19,560 | -17,383 | |||||||||||
Net loss attributable to The Hertz Corporation and Subsidiaries' common stockholder | 129,900 | -28,300 | 251,300 | 101,000 | -48,200 | 58,800 | 212,600 | 62,100 | -123,000 | 156,400 | 52,700 | 275,779 | 210,489 | -18,383 |
Parent | ||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | ||||||||||||||
Total revenues | 1,147,000 | 1,074,900 | 2,201,600 | 2,042,900 | 4,259,049 | 4,068,310 | 3,961,435 | |||||||
Expenses: | ||||||||||||||
Direct operating | 618,800 | 609,400 | 1,231,700 | 1,181,200 | 2,384,829 | 2,262,371 | 2,217,864 | |||||||
Depreciation of revenue earning equipment and lease charges | 608,000 | 560,600 | 1,269,400 | 1,099,300 | 2,402,032 | 1,996,733 | 1,938,416 | |||||||
Selling, general and administrative | 122,300 | 94,400 | 229,500 | 198,600 | 448,100 | 326,794 | 320,192 | |||||||
Interest Income (Expense), Net | 253,437 | 299,099 | 297,276 | |||||||||||
Interest income | 0 | 0 | 0 | -100 | ||||||||||
Other (income) expense, net | 14,500 | 0 | 14,300 | 0 | -10,656 | 62,396 | 9,915 | |||||||
Total expenses | 1,451,600 | 1,320,400 | 2,914,000 | 2,598,600 | 5,477,742 | 4,947,393 | 4,783,663 | |||||||
Income before income taxes | -304,600 | -245,500 | -712,400 | -555,700 | -1,218,693 | -879,083 | -822,228 | |||||||
Provision for taxes on income | 109,300 | 90,700 | 257,500 | 201,900 | 476,444 | 342,469 | 314,692 | |||||||
Equity in earnings (losses) of subsidiaries (net of tax) | 325,200 | 255,700 | 611,300 | 406,500 | 1,018,028 | 747,103 | 489,153 | |||||||
Net income | 129,900 | 100,900 | 52,700 | 156,400 | 275,779 | 210,489 | -18,383 | |||||||
Less: Net income attributable to noncontrolling interest | 0 | 0 | ||||||||||||
Net loss attributable to The Hertz Corporation and Subsidiaries' common stockholder | 129,900 | 100,900 | 156,400 | 52,700 | 275,779 | 210,489 | -18,383 | |||||||
Guarantor Subsidiaries | ||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | ||||||||||||||
Total revenues | 662,800 | 233,100 | 1,284,900 | 442,900 | 975,500 | 809,093 | 701,264 | |||||||
Expenses: | ||||||||||||||
Direct operating | 357,100 | 141,100 | 710,000 | 274,400 | 553,099 | 497,053 | 452,674 | |||||||
Depreciation of revenue earning equipment and lease charges | 168,900 | 48,000 | 321,300 | 92,400 | 198,322 | 180,807 | 200,252 | |||||||
Selling, general and administrative | 64,700 | 31,400 | 124,400 | 56,900 | 123,300 | 85,414 | 67,739 | |||||||
Interest Income (Expense), Net | 39,679 | 27,226 | 20,068 | |||||||||||
Interest income | -1,600 | -200 | -3,100 | -400 | ||||||||||
Other (income) expense, net | -2,200 | 0 | -2,200 | 0 | -19 | -18 | -3 | |||||||
Total expenses | 595,400 | 229,400 | 1,169,200 | 442,300 | 914,381 | 790,482 | 740,730 | |||||||
Income before income taxes | 67,400 | 3,700 | 115,700 | 600 | 61,119 | 18,611 | -39,466 | |||||||
Provision for taxes on income | -25,200 | -1,300 | -43,100 | -600 | -44,846 | -10,016 | 10,718 | |||||||
Equity in earnings (losses) of subsidiaries (net of tax) | 56,800 | -33,800 | 111,600 | -22,600 | 45,922 | 26,215 | -5,268 | |||||||
Net income | 99,000 | -31,400 | -22,600 | 184,200 | 62,195 | 34,810 | -34,016 | |||||||
Less: Net income attributable to noncontrolling interest | 0 | 0 | ||||||||||||
Net loss attributable to The Hertz Corporation and Subsidiaries' common stockholder | 99,000 | -31,400 | 184,200 | -22,600 | 62,195 | 34,810 | -34,016 | |||||||
Non-Guarantor Subsidiaries | ||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | ||||||||||||||
Total revenues | 1,617,500 | 1,493,100 | 3,120,600 | 2,834,300 | 6,255,039 | 5,733,827 | 5,350,348 | |||||||
Expenses: | ||||||||||||||
Direct operating | 430,300 | 438,400 | 815,900 | 847,500 | 1,857,860 | 1,806,954 | 1,612,856 | |||||||
Depreciation of revenue earning equipment and lease charges | 576,400 | 487,200 | 1,092,600 | 977,200 | 2,016,585 | 2,041,049 | 2,179,992 | |||||||
Selling, general and administrative | 88,000 | 80,800 | 172,600 | 158,800 | 374,181 | 332,909 | 276,511 | |||||||
Interest Income (Expense), Net | 299,770 | 318,378 | 396,880 | |||||||||||
Interest income | -400 | -300 | -700 | -1,100 | ||||||||||
Other (income) expense, net | -13,400 | -600 | -13,800 | -1,000 | 46,217 | 170 | -9,907 | |||||||
Total expenses | 1,154,600 | 1,079,700 | 2,212,200 | 2,131,600 | 4,594,613 | 4,499,460 | 4,456,332 | |||||||
Income before income taxes | 462,900 | 413,400 | 908,400 | 702,700 | 1,660,426 | 1,234,367 | 894,016 | |||||||
Provision for taxes on income | -179,900 | -160,100 | -369,700 | -296,200 | -658,671 | -476,299 | -358,732 | |||||||
Equity in earnings (losses) of subsidiaries (net of tax) | 0 | 0 | 0 | 0 | ||||||||||
Net income | 283,000 | 253,300 | 406,500 | 538,700 | 1,001,755 | 758,068 | 535,284 | |||||||
Less: Net income attributable to noncontrolling interest | -19,560 | -17,383 | ||||||||||||
Net loss attributable to The Hertz Corporation and Subsidiaries' common stockholder | 283,000 | 253,300 | 538,700 | 406,500 | 1,001,755 | 738,508 | 517,901 | |||||||
Eliminations | ||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | ||||||||||||||
Total revenues | -712,700 | -576,000 | -1,455,900 | -1,134,000 | -2,468,781 | -2,312,850 | -2,450,513 | |||||||
Expenses: | ||||||||||||||
Direct operating | -300 | 0 | -500 | 0 | 0 | 0 | 0 | |||||||
Depreciation of revenue earning equipment and lease charges | -712,200 | -576,000 | -1,455,200 | -1,134,000 | -2,468,781 | -2,312,850 | -2,450,513 | |||||||
Selling, general and administrative | -200 | 0 | -200 | 0 | 0 | 0 | 0 | |||||||
Interest Income (Expense), Net | 0 | 0 | 0 | |||||||||||
Interest income | 0 | 0 | 0 | 0 | ||||||||||
Other (income) expense, net | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||
Total expenses | -712,700 | -576,000 | -1,455,900 | -1,134,000 | -2,468,781 | -2,312,850 | -2,450,513 | |||||||
Income before income taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||
Provision for taxes on income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||
Equity in earnings (losses) of subsidiaries (net of tax) | -382,000 | -221,900 | -722,900 | -383,900 | -1,063,950 | -773,318 | -483,885 | |||||||
Net income | -382,000 | -221,900 | -383,900 | -722,900 | -1,063,950 | -773,318 | -483,885 | |||||||
Less: Net income attributable to noncontrolling interest | 0 | 0 | ||||||||||||
Net loss attributable to The Hertz Corporation and Subsidiaries' common stockholder | ($382,000) | ($221,900) | ($722,900) | ($383,900) | ($1,063,950) | ($773,318) | ($483,885) |
Recovered_Sheet1
Guarantor and Non-Guarantor Condensed Consolidating Financial Statements (Details 3) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2012 | Mar. 31, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) | ||||||||
Net income | $129,900 | $100,900 | $52,700 | $156,400 | $275,779 | $230,049 | ($1,000) | |
Other comprehensive income, net of tax | -22,200 | -42,000 | -9,600 | -46,400 | -9,600 | 1,522 | -66,237 | 41,154 |
Comprehensive income | 107,700 | 58,900 | 43,100 | 110,000 | 277,301 | 163,812 | 40,154 | |
Less: Comprehensive income attributable to noncontrolling interest | 0 | -19,560 | -17,383 | |||||
Comprehensive income attributable to The Hertz Corporation and Subsidiaries' common stockholder | 107,700 | 58,900 | 110,000 | 43,100 | 277,301 | 144,252 | 22,771 | |
Parent | ||||||||
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) | ||||||||
Net income | 129,900 | 100,900 | 52,700 | 156,400 | 275,779 | 210,489 | -18,383 | |
Other comprehensive income, net of tax | -22,200 | -42,000 | -9,600 | -46,500 | 1,522 | -66,237 | 41,154 | |
Comprehensive income | 107,700 | 58,900 | 43,100 | 109,900 | 277,301 | 144,252 | 22,771 | |
Less: Comprehensive income attributable to noncontrolling interest | 0 | 0 | ||||||
Comprehensive income attributable to The Hertz Corporation and Subsidiaries' common stockholder | 144,252 | 22,771 | ||||||
Guarantor Subsidiaries | ||||||||
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) | ||||||||
Net income | 99,000 | -31,400 | -22,600 | 184,200 | 62,195 | 34,810 | -34,016 | |
Other comprehensive income, net of tax | -3,200 | 0 | 0 | -400 | 121 | 0 | 0 | |
Comprehensive income | 95,800 | -31,400 | -22,600 | 183,800 | 62,316 | 34,810 | -34,016 | |
Less: Comprehensive income attributable to noncontrolling interest | 0 | 0 | ||||||
Comprehensive income attributable to The Hertz Corporation and Subsidiaries' common stockholder | 34,810 | -34,016 | ||||||
Non-Guarantor Subsidiaries | ||||||||
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) | ||||||||
Net income | 283,000 | 253,300 | 406,500 | 538,700 | 1,001,755 | 758,068 | 535,284 | |
Other comprehensive income, net of tax | -24,400 | -45,600 | -16,400 | -51,300 | 6,816 | -34,619 | 28,427 | |
Comprehensive income | 258,600 | 207,700 | 390,100 | 487,400 | 1,008,571 | 723,449 | 563,711 | |
Less: Comprehensive income attributable to noncontrolling interest | -19,560 | -17,383 | ||||||
Comprehensive income attributable to The Hertz Corporation and Subsidiaries' common stockholder | 703,889 | 546,328 | ||||||
Eliminations | ||||||||
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) | ||||||||
Net income | -382,000 | -221,900 | -383,900 | -722,900 | -1,063,950 | -773,318 | -483,885 | |
Other comprehensive income, net of tax | 27,600 | 45,600 | 16,400 | 51,800 | -6,937 | 34,619 | -28,427 | |
Comprehensive income | -354,400 | -176,300 | -367,500 | -671,100 | -1,070,887 | -738,699 | -512,312 | |
Less: Comprehensive income attributable to noncontrolling interest | 0 | 0 | ||||||
Comprehensive income attributable to The Hertz Corporation and Subsidiaries' common stockholder | ($738,699) | ($512,312) |
Recovered_Sheet2
Guarantor and Non-Guarantor Condensed Consolidating Financial Statements (Details 4) (USD $) | 6 Months Ended | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Mar. 31, 2012 |
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||
Net cash provided by (used in) operating activities | $1,466,000 | $1,183,000 | $2,748,412 | $2,258,521 | $2,237,927 | |
Cash flows from investing activities: | ||||||
Net change in restricted cash and cash equivalents | 175,400 | 130,100 | -261,605 | -101,766 | 160,516 | |
Revenue earning equipment expenditures | -6,825,500 | -5,711,000 | -9,613,239 | -9,454,311 | -8,440,872 | |
Proceeds from disposal of revenue earning equipment | 3,742,800 | 3,608,300 | 7,125,096 | 7,850,442 | 7,518,446 | |
Property and equipment expenditures | -168,100 | -137,200 | -312,786 | -281,695 | -179,209 | |
Proceeds from disposal of property and equipment | 42,500 | 56,400 | 137,694 | 53,814 | 38,905 | |
Capital contributions to subsidiaries | 0 | 0 | 0 | 0 | 0 | |
Return of capital from subsidiaries | 0 | 0 | 0 | 0 | 0 | |
Loan to Parent From Non-Guarantor | 0 | 0 | 0 | 0 | -6,173 | |
Acquisitions, net of cash acquired | -229,200 | -161,800 | -1,905,168 | -227,081 | -47,571 | |
Proceeds from disposal of business | 0 | 84,497 | 0 | 0 | ||
Purchase of short-term investments, net | 0 | -32,891 | 3,491 | |||
Other investing activities | -2,000 | -600 | -1,779 | 586 | 2,726 | |
Net cash used in investing activities | -3,264,100 | -2,215,800 | -4,747,290 | -2,192,902 | -943,568 | |
Excess Tax Benefit (Tax Deficiency) from Share-based Compensation, Financing Activities | 0 | 0 | -258 | |||
Cash flows from financing activities: | ||||||
Proceeds from issuance of long-term debt | 1,204,400 | 270,500 | 2,237,280 | 3,062,479 | 2,635,713 | |
Payment of long-term debt | -320,700 | -643,100 | -952,144 | -3,649,300 | -2,954,233 | |
Short-term borrowings: | ||||||
Proceeds | 332,000 | 246,700 | 438,387 | 460,890 | 490,490 | |
Payments | -435,900 | -656,200 | -1,280,143 | -1,194,056 | -970,949 | |
Proceeds (payments) under the revolving lines of credit, net | 1,273,164 | -57,329 | 1,026,070 | |||
Distributions to noncontrolling interest | 0 | -23,100 | -18,200 | |||
Capital contributions received from parent | 0 | 0 | 0 | 0 | 0 | |
Loan to Parent From Non-Guarantor | 0 | 0 | 0 | |||
Payment of dividends and return of capital | -479,700 | -12,500 | -25,000 | -22,950 | -23,000 | |
Proceeds from employee stock purchase plan | 2,400 | 2,000 | 4,275 | 3,577 | 3,208 | |
Loan from Hertz Global Holdings, Inc. | 12,000 | -13,900 | -13,220 | -984 | -6,173 | |
Purchase of noncontrolling interest | 0 | -38,000 | -38,000 | 0 | 0 | |
Payment of financing costs | -20,600 | -6,900 | -49,433 | -91,482 | -78,151 | |
Net cash provided by (used in) financing activities | 1,756,100 | 692,400 | 1,595,166 | -1,512,255 | 104,517 | |
Effect of foreign exchange rate changes on cash and cash equivalents | -8,200 | -4,800 | 5,739 | 3,838 | -10,337 | |
Net decrease in cash and cash equivalents during the period | -50,200 | -345,200 | -397,973 | -1,442,798 | 1,388,539 | |
Cash and cash equivalents at beginning of period | 533,235 | 931,208 | 931,208 | 2,374,006 | 985,467 | 586,000 |
Cash and cash equivalents at end of period | 483,000 | 586,000 | 533,235 | 931,208 | 2,374,006 | 586,000 |
Parent | ||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||
Net cash provided by (used in) operating activities | -365,700 | -219,000 | 1,677,648 | 1,000,597 | 337,055 | |
Cash flows from investing activities: | ||||||
Net change in restricted cash and cash equivalents | -1,000 | 12,600 | 11,981 | -28,570 | 19,932 | |
Revenue earning equipment expenditures | -87,900 | -73,800 | -88,120 | -142,134 | -188,057 | |
Proceeds from disposal of revenue earning equipment | 47,700 | 54,400 | 79,390 | 163,330 | 169,451 | |
Property and equipment expenditures | -99,100 | -80,200 | -173,053 | -189,562 | -92,415 | |
Proceeds from disposal of property and equipment | 24,600 | 44,300 | 67,370 | 23,952 | 4,311 | |
Capital contributions to subsidiaries | -485,700 | -2,215,900 | -4,267,118 | -3,549,088 | -1,544,332 | |
Return of capital from subsidiaries | 651,000 | 2,220,600 | 1,829,256 | 2,590,025 | 1,877,095 | |
Loan to Parent From Non-Guarantor | 0 | 0 | 0 | 490,273 | -6,173 | |
Acquisitions, net of cash acquired | 0 | 0 | -1,708,520 | -214,384 | -35 | |
Proceeds from disposal of business | 0 | 0 | ||||
Purchase of short-term investments, net | 0 | -32,891 | 3,183 | |||
Other investing activities | 0 | 0 | 0 | 0 | 0 | |
Net cash used in investing activities | 49,600 | -38,000 | -4,248,814 | -1,379,322 | 249,133 | |
Excess Tax Benefit (Tax Deficiency) from Share-based Compensation, Financing Activities | 0 | 0 | -258 | |||
Cash flows from financing activities: | ||||||
Proceeds from issuance of long-term debt | 250,000 | 260,000 | 2,210,000 | 2,455,309 | 1,209,866 | |
Payment of long-term debt | -22,800 | -637,300 | -650,407 | -3,596,295 | -73,342 | |
Short-term borrowings: | ||||||
Proceeds | 0 | 0 | 0 | 0 | 0 | |
Payments | 0 | -26,800 | -26,775 | -29,224 | -2,615 | |
Proceeds (payments) under the revolving lines of credit, net | 220,000 | -29,128 | -18,907 | |||
Distributions to noncontrolling interest | 0 | 0 | ||||
Capital contributions received from parent | 0 | 0 | 0 | 0 | 0 | |
Loan to Parent From Non-Guarantor | 0 | 18,300 | 385,108 | 490,273 | 0 | |
Payment of dividends and return of capital | -479,700 | -12,500 | -25,000 | -22,950 | -23,000 | |
Proceeds from employee stock purchase plan | 2,400 | 2,000 | 4,275 | 3,577 | 3,208 | |
Loan from Hertz Global Holdings, Inc. | 12,000 | -13,900 | -13,220 | -984 | -6,173 | |
Purchase of noncontrolling interest | -38,000 | -38,000 | 0 | 0 | ||
Payment of financing costs | -7,900 | -4,200 | -35,215 | -81,229 | -29,111 | |
Net cash provided by (used in) financing activities | 379,000 | -42,400 | 2,030,766 | -810,651 | 1,059,668 | |
Effect of foreign exchange rate changes on cash and cash equivalents | 0 | 0 | 0 | 0 | 0 | |
Net decrease in cash and cash equivalents during the period | 62,900 | -299,400 | -540,400 | -1,189,376 | 1,645,856 | |
Cash and cash equivalents at beginning of period | 24,602 | 565,002 | 565,002 | 1,754,378 | 108,522 | 265,600 |
Cash and cash equivalents at end of period | 87,500 | 24,602 | 565,002 | 1,754,378 | 265,600 | |
Guarantor Subsidiaries | ||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||
Net cash provided by (used in) operating activities | 425,100 | 334,200 | 690,292 | 773,170 | 88,941 | |
Cash flows from investing activities: | ||||||
Net change in restricted cash and cash equivalents | 200 | 18,200 | 13,596 | -2,662 | -17,514 | |
Revenue earning equipment expenditures | -347,700 | -334,100 | -763,610 | -670,056 | -96,452 | |
Proceeds from disposal of revenue earning equipment | 16,900 | 162,600 | 276,342 | 170,522 | 75,139 | |
Property and equipment expenditures | -18,000 | -24,200 | -32,022 | -29,696 | -14,137 | |
Proceeds from disposal of property and equipment | 5,500 | 4,200 | 11,839 | 9,263 | 10,416 | |
Capital contributions to subsidiaries | 0 | 0 | 0 | 0 | 0 | |
Return of capital from subsidiaries | 0 | 0 | 0 | 0 | 0 | |
Loan to Parent From Non-Guarantor | 0 | 0 | 0 | 0 | 0 | |
Acquisitions, net of cash acquired | -2,800 | -161,800 | -196,648 | -2,100 | -43,789 | |
Proceeds from disposal of business | 0 | 0 | ||||
Purchase of short-term investments, net | 0 | 94 | ||||
Other investing activities | 0 | 0 | 0 | -13,602 | 0 | |
Net cash used in investing activities | -345,900 | -335,100 | -690,503 | -538,331 | -86,243 | |
Excess Tax Benefit (Tax Deficiency) from Share-based Compensation, Financing Activities | 0 | |||||
Cash flows from financing activities: | ||||||
Proceeds from issuance of long-term debt | 0 | 0 | 0 | 0 | 0 | |
Payment of long-term debt | 0 | 0 | -18 | -17 | -68 | |
Short-term borrowings: | ||||||
Proceeds | 0 | 0 | 0 | 0 | 0 | |
Payments | 0 | 0 | 0 | 0 | 0 | |
Proceeds (payments) under the revolving lines of credit, net | -1,262 | -229,778 | -3,515 | |||
Distributions to noncontrolling interest | 0 | 0 | ||||
Capital contributions received from parent | 0 | 0 | 0 | 0 | 0 | |
Loan to Parent From Non-Guarantor | -57,000 | 0 | 0 | |||
Payment of dividends and return of capital | 0 | 0 | 0 | 0 | 0 | |
Proceeds from employee stock purchase plan | 0 | 0 | 0 | 0 | 0 | |
Loan from Hertz Global Holdings, Inc. | 0 | 0 | 0 | 0 | ||
Purchase of noncontrolling interest | 0 | 0 | ||||
Payment of financing costs | -800 | -1,500 | -3,316 | -2,817 | 0 | |
Net cash provided by (used in) financing activities | -61,200 | -2,500 | -4,596 | -232,612 | -3,583 | |
Effect of foreign exchange rate changes on cash and cash equivalents | 0 | 0 | 0 | 0 | 0 | |
Net decrease in cash and cash equivalents during the period | 18,000 | -3,400 | -4,807 | 2,227 | -885 | |
Cash and cash equivalents at beginning of period | 2,578 | 7,385 | 7,385 | 5,158 | 6,043 | 4,000 |
Cash and cash equivalents at end of period | 24,500 | 2,578 | 7,385 | 5,158 | 4,000 | |
Non-Guarantor Subsidiaries | ||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||
Net cash provided by (used in) operating activities | 1,811,900 | 1,409,300 | 1,155,789 | 1,038,124 | 2,193,486 | |
Cash flows from investing activities: | ||||||
Net change in restricted cash and cash equivalents | 176,200 | 99,300 | -287,182 | -70,534 | 158,098 | |
Revenue earning equipment expenditures | -6,389,900 | -5,303,100 | -8,761,509 | -8,642,121 | -8,156,363 | |
Proceeds from disposal of revenue earning equipment | 3,678,200 | 3,391,300 | 6,769,364 | 7,516,590 | 7,273,856 | |
Property and equipment expenditures | -51,000 | -32,800 | -107,711 | -62,437 | -72,657 | |
Proceeds from disposal of property and equipment | 12,400 | 7,900 | 58,485 | 20,599 | 24,178 | |
Capital contributions to subsidiaries | 0 | 0 | 0 | 0 | 0 | |
Return of capital from subsidiaries | 0 | 0 | 0 | 0 | 0 | |
Loan to Parent From Non-Guarantor | 57,000 | -18,300 | -385,108 | 0 | 0 | |
Acquisitions, net of cash acquired | -226,400 | 0 | 0 | -10,597 | -3,747 | |
Proceeds from disposal of business | 0 | 84,497 | ||||
Purchase of short-term investments, net | 0 | 214 | ||||
Other investing activities | -2,000 | -600 | -1,779 | 14,188 | 2,726 | |
Net cash used in investing activities | -2,745,500 | -1,856,300 | -2,630,943 | -1,724,585 | -773,695 | |
Excess Tax Benefit (Tax Deficiency) from Share-based Compensation, Financing Activities | 0 | |||||
Cash flows from financing activities: | ||||||
Proceeds from issuance of long-term debt | 954,400 | 10,500 | 27,280 | 607,170 | 1,425,847 | |
Payment of long-term debt | -297,900 | -5,800 | -301,719 | -52,988 | -2,880,823 | |
Short-term borrowings: | ||||||
Proceeds | 332,000 | 246,700 | 438,387 | 460,890 | 490,490 | |
Payments | -435,900 | -629,400 | -1,253,368 | -1,164,832 | -968,334 | |
Proceeds (payments) under the revolving lines of credit, net | 1,054,426 | 201,577 | 1,048,492 | |||
Distributions to noncontrolling interest | -23,100 | -18,200 | ||||
Capital contributions received from parent | 485,700 | 2,215,900 | 4,267,118 | 3,549,088 | 1,544,332 | |
Loan to Parent From Non-Guarantor | 0 | 0 | 0 | -490,273 | ||
Payment of dividends and return of capital | -1,056,300 | -2,562,100 | -2,604,573 | -3,143,395 | -2,258,650 | |
Proceeds from employee stock purchase plan | 0 | 0 | 0 | 0 | 0 | |
Loan from Hertz Global Holdings, Inc. | 0 | 0 | 0 | 0 | ||
Purchase of noncontrolling interest | 0 | 0 | ||||
Payment of financing costs | -11,900 | -1,200 | -10,902 | -7,436 | -49,040 | |
Net cash provided by (used in) financing activities | 810,700 | 409,400 | 1,616,649 | 426,974 | -1,665,886 | |
Effect of foreign exchange rate changes on cash and cash equivalents | -8,200 | -4,800 | 5,739 | 3,838 | -10,337 | |
Net decrease in cash and cash equivalents during the period | -131,100 | -42,400 | 147,234 | -255,649 | -256,432 | |
Cash and cash equivalents at beginning of period | 506,055 | 358,821 | 358,821 | 614,470 | 870,902 | 316,400 |
Cash and cash equivalents at end of period | 371,000 | 506,055 | 358,821 | 614,470 | 316,400 | |
Eliminations | ||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||
Net cash provided by (used in) operating activities | -405,300 | -341,500 | -775,317 | -553,370 | -381,555 | |
Cash flows from investing activities: | ||||||
Net change in restricted cash and cash equivalents | 0 | 0 | 0 | 0 | 0 | |
Revenue earning equipment expenditures | 0 | 0 | 0 | 0 | 0 | |
Proceeds from disposal of revenue earning equipment | 0 | 0 | 0 | 0 | 0 | |
Property and equipment expenditures | 0 | 0 | 0 | 0 | 0 | |
Proceeds from disposal of property and equipment | 0 | 0 | 0 | 0 | ||
Capital contributions to subsidiaries | 485,700 | 2,215,900 | 4,267,118 | 3,549,088 | 1,544,332 | |
Return of capital from subsidiaries | -651,000 | -2,220,600 | -1,829,256 | -2,590,025 | -1,877,095 | |
Loan to Parent From Non-Guarantor | -57,000 | 18,300 | 385,108 | -490,273 | 0 | |
Acquisitions, net of cash acquired | 0 | 0 | 0 | 0 | 0 | |
Proceeds from disposal of business | 0 | 0 | ||||
Purchase of short-term investments, net | 0 | 0 | ||||
Other investing activities | 0 | 0 | 0 | 0 | 0 | |
Net cash used in investing activities | -222,300 | 13,600 | 2,822,970 | 1,449,336 | -332,763 | |
Excess Tax Benefit (Tax Deficiency) from Share-based Compensation, Financing Activities | 0 | |||||
Cash flows from financing activities: | ||||||
Proceeds from issuance of long-term debt | 0 | 0 | 0 | 0 | 0 | |
Payment of long-term debt | 0 | 0 | 0 | 0 | 0 | |
Short-term borrowings: | ||||||
Proceeds | 0 | 0 | 0 | 0 | 0 | |
Payments | 0 | 0 | 0 | 0 | 0 | |
Proceeds (payments) under the revolving lines of credit, net | 0 | 0 | 0 | |||
Distributions to noncontrolling interest | 0 | 0 | ||||
Capital contributions received from parent | -485,700 | -2,215,900 | -4,267,118 | -3,549,088 | -1,544,332 | |
Loan to Parent From Non-Guarantor | 57,000 | -18,300 | -385,108 | 490,273 | ||
Payment of dividends and return of capital | 1,056,300 | 2,562,100 | 2,604,573 | 3,143,395 | 2,258,650 | |
Proceeds from employee stock purchase plan | 0 | 0 | 0 | 0 | 0 | |
Loan from Hertz Global Holdings, Inc. | 0 | 0 | 0 | 0 | ||
Purchase of noncontrolling interest | 0 | 0 | ||||
Payment of financing costs | 0 | 0 | 0 | 0 | 0 | |
Net cash provided by (used in) financing activities | 627,600 | 327,900 | -2,047,653 | -895,966 | 714,318 | |
Effect of foreign exchange rate changes on cash and cash equivalents | 0 | 0 | 0 | 0 | 0 | |
Net decrease in cash and cash equivalents during the period | 0 | 0 | 0 | 0 | 0 | |
Cash and cash equivalents at beginning of period | 0 | 0 | 0 | 0 | 0 | 0 |
Cash and cash equivalents at end of period | $0 | $0 | $0 | $0 | $0 |
Subsequent_Events_Details1
Subsequent Events (Details) (USD $) | Jan. 31, 2013 | Jan. 31, 2013 | Jan. 31, 2013 | Jan. 31, 2013 | Jan. 23, 2013 | Jan. 23, 2013 | Jan. 23, 2013 | Jan. 23, 2013 | Jan. 23, 2013 |
Class-A, 3 year | Class-B, 3 year | Class-A, 5 year | Class-B, 5 year | Subsequent event | Subsequent event | Subsequent event | Subsequent event | Subsequent event | |
Rental Car Asset Backed Notes, Class A and Class B [Member] | Class-A, 3 year | Class-B, 3 year | Class-A, 5 year | Class-B, 5 year | |||||
Subsequent events | |||||||||
Face amount | $282,750,000 | $42,250,000 | $543,750,000 | $81,250,000 | $950,000,000 | $282,750,000 | $42,250,000 | $543,750,000 | $81,250,000 |
Coupon | 1.12% | 1.86% | 1.83% | 2.48% | 1.12% | 1.86% | 1.83% | 2.48% |
SCHEDULE_ICONDENSED_FINANCIAL_1
SCHEDULE I-CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Details) (USD $) | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 |
In Thousands, except Share data, unless otherwise specified | |||||||
ASSETS | |||||||
Cash and cash equivalents | $483,000 | $533,235 | $586,000 | $586,000 | $931,208 | $2,374,006 | $985,467 |
Restricted cash and cash equivalents | 393,200 | 571,634 | 308,039 | ||||
Receivables, less allowance for doubtful accounts | 1,656,000 | 1,886,596 | 1,616,382 | ||||
Due from Hertz affiliates | 800 | 12,809 | 0 | ||||
Inventories, at lower of cost or market | 128,300 | 105,728 | 83,978 | ||||
Prepaid expenses and other assets | 763,200 | 461,502 | 416,134 | ||||
Revenue earning equipment, net | 15,706,000 | 12,908,336 | 10,105,409 | ||||
Property and equipment, net | 1,465,600 | 1,436,386 | 1,251,854 | ||||
Other intangible assets, net | 3,968,500 | 4,032,111 | 2,562,234 | ||||
Goodwill | 1,366,300 | 1,341,872 | 392,094 | 328,600 | |||
Total assets | 25,930,900 | 23,290,209 | 17,667,332 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Due to Hertz affiliates | 0 | 0 | 412 | ||||
Accounts payable | 1,484,500 | 999,061 | 897,489 | ||||
Accrued liabilities | 1,182,300 | 1,178,460 | 1,126,338 | ||||
Accrued taxes | 183,600 | 167,314 | 162,984 | ||||
Debt | 17,394,200 | 15,014,474 | 10,907,849 | ||||
Public liability and property damage | 327,500 | 332,232 | 281,534 | ||||
Total Liabilities | 23,358,900 | 20,372,681 | 15,038,478 | ||||
Stockholders' equity: | |||||||
Common Stock, Value, Issued | 0 | 0 | 0 | ||||
Additional paid-in capital | 3,534,200 | 3,509,998 | 3,473,625 | ||||
Accumulated deficit | -888,900 | -565,597 | -816,376 | ||||
Accumulated other comprehensive loss | -73,300 | -26,892 | -38,000 | -28,414 | |||
The Hertz Corporation and Subsidiaries stockholder's equity | 2,572,000 | 2,917,509 | 2,628,835 | ||||
Total liabilities and equity | 25,930,900 | 23,290,209 | 17,667,332 | ||||
Stock Transactions, Parenthetical Disclosures [Abstract] | |||||||
Common Stock, par value (in dollars per share) | $0.01 | $0.01 | $0.01 | ||||
Common Stock, shares authorized | 3,000 | 3,000 | 3,000 | ||||
Common Stock, shares issued | 100 | 100 | 100 | ||||
Common Stock, shares outstanding | 100 | 100 | 100 | ||||
Parent | |||||||
ASSETS | |||||||
Cash and cash equivalents | 87,500 | 24,602 | 265,600 | 565,002 | 1,754,378 | 108,522 | |
Restricted cash and cash equivalents | 33,700 | 32,681 | 44,663 | ||||
Receivables, less allowance for doubtful accounts | 500,800 | 544,454 | 297,292 | ||||
Due from Hertz affiliates | 1,042,700 | 1,047,986 | 655,411 | ||||
Inventories, at lower of cost or market | 30,800 | 24,422 | 22,440 | ||||
Prepaid expenses and other assets | 2,894,700 | 2,570,539 | 2,088,579 | ||||
Revenue earning equipment, net | 175,300 | 104,207 | 167,304 | ||||
Property and equipment, net | 897,600 | 865,694 | 824,381 | ||||
Investments in subsidiaries, net | 6,964,916 | 4,413,289 | |||||
Other intangible assets, net | 70,200 | 74,606 | 94,682 | ||||
Goodwill | 106,200 | 106,210 | 100,221 | ||||
Total assets | 12,672,600 | 12,360,317 | 9,273,264 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Due to Hertz affiliates | 2,097,100 | 2,254,223 | 1,251,347 | ||||
Accounts payable | 165,200 | 239,247 | 188,695 | ||||
Accrued liabilities | 642,700 | 605,680 | 607,673 | ||||
Accrued taxes | 60,300 | 54,357 | 54,559 | ||||
Debt | 7,042,300 | 6,190,040 | 4,434,274 | ||||
Public liability and property damage | 93,000 | 99,261 | 107,881 | ||||
Total Liabilities | 10,100,600 | 9,442,808 | 6,644,429 | ||||
Stockholders' equity: | |||||||
Common Stock, Value, Issued | 0 | 0 | |||||
Additional paid-in capital | 3,509,998 | 3,473,625 | |||||
Accumulated deficit | -565,597 | -816,376 | |||||
Accumulated other comprehensive loss | -26,892 | -28,414 | |||||
The Hertz Corporation and Subsidiaries stockholder's equity | 2,572,000 | 2,917,509 | 2,628,835 | ||||
Total liabilities and equity | $12,672,600 | $12,360,317 | $9,273,264 | ||||
Stock Transactions, Parenthetical Disclosures [Abstract] | |||||||
Common Stock, par value (in dollars per share) | $0.01 | $0.01 | |||||
Common Stock, shares authorized | 3,000 | 3,000 | |||||
Common Stock, shares issued | 100 | 100 | 100 | ||||
Common Stock, shares outstanding | 100 | 100 |
SCHEDULE_ICONDENSED_FINANCIAL_2
SCHEDULE I-CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Details 2) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||
In Thousands, unless otherwise specified | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||
Revenues | $2,714,600 | $2,318,600 | $2,516,200 | $2,225,100 | $1,960,900 | $2,013,800 | $2,432,300 | $2,072,300 | $1,780,000 | $5,151,200 | $4,186,100 | $9,020,807 | $8,298,380 | $7,562,534 |
Expenses: | ||||||||||||||
Selling, general and administrative | 274,800 | 206,600 | 526,300 | 414,300 | 945,581 | 745,117 | 664,442 | |||||||
Interest expense, net of interest income | 592,886 | 644,703 | 714,224 | |||||||||||
Total expenses | 2,488,900 | 2,053,500 | 4,839,500 | 4,038,500 | 8,517,955 | 7,924,485 | 7,530,212 | |||||||
Income before income taxes | 225,700 | -26,900 | 382,100 | 171,700 | -24,000 | 105,400 | 308,200 | 107,000 | -146,700 | 311,700 | 147,600 | 502,852 | 373,895 | 32,322 |
Provision for taxes on income | -95,800 | -70,700 | -155,300 | -94,900 | -227,073 | -143,846 | -33,322 | |||||||
Net income | 129,900 | 100,900 | 52,700 | 156,400 | 275,779 | 230,049 | -1,000 | |||||||
Direct operating | 1,405,900 | 1,188,900 | 2,757,100 | 2,303,100 | 4,795,788 | 4,566,378 | 4,283,394 | |||||||
Depreciation of revenue earning equipment and lease charges | 641,100 | 519,800 | 1,228,100 | 1,034,900 | 2,148,158 | 1,905,739 | 1,868,147 | |||||||
Other Nonoperating Income (Expense) | -1,100 | -600 | -1,700 | -1,000 | 35,542 | 62,548 | 5 | |||||||
Equity in earnings (losses) of subsidiaries (net of tax) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||
Net income attributable to The Hertz Corporation and Subsidiaries' common stockholder | 129,900 | -28,300 | 251,300 | 101,000 | -48,200 | 58,800 | 212,600 | 62,100 | -123,000 | 156,400 | 52,700 | 275,779 | 210,489 | -18,383 |
Parent | ||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||
Revenues | 1,147,000 | 1,074,900 | 2,201,600 | 2,042,900 | 4,259,049 | 4,068,310 | 3,961,435 | |||||||
Expenses: | ||||||||||||||
Selling, general and administrative | 122,300 | 94,400 | 229,500 | 198,600 | 448,100 | 326,794 | 320,192 | |||||||
Interest expense, net of interest income | 253,437 | 299,099 | 297,276 | |||||||||||
Total expenses | 1,451,600 | 1,320,400 | 2,914,000 | 2,598,600 | 5,477,742 | 4,947,393 | 4,783,663 | |||||||
Income before income taxes | -304,600 | -245,500 | -712,400 | -555,700 | -1,218,693 | -879,083 | -822,228 | |||||||
Provision for taxes on income | 109,300 | 90,700 | 257,500 | 201,900 | 476,444 | 342,469 | 314,692 | |||||||
Net income | 129,900 | 100,900 | 52,700 | 156,400 | 275,779 | 210,489 | -18,383 | |||||||
Direct operating | 618,800 | 609,400 | 1,231,700 | 1,181,200 | 2,384,829 | 2,262,371 | 2,217,864 | |||||||
Depreciation of revenue earning equipment and lease charges | 608,000 | 560,600 | 1,269,400 | 1,099,300 | 2,402,032 | 1,996,733 | 1,938,416 | |||||||
Other Nonoperating Income (Expense) | 14,500 | 0 | 14,300 | 0 | -10,656 | 62,396 | 9,915 | |||||||
Equity in earnings (losses) of subsidiaries (net of tax) | 325,200 | 255,700 | 611,300 | 406,500 | 1,018,028 | 747,103 | 489,153 | |||||||
Net income attributable to The Hertz Corporation and Subsidiaries' common stockholder | $129,900 | $100,900 | $156,400 | $52,700 | $275,779 | $210,489 | ($18,383) |
SCHEDULE_ICONDENSED_FINANCIAL_3
SCHEDULE I-CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Details 3) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2012 | Mar. 31, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Net income | $129,900 | $100,900 | $52,700 | $156,400 | $275,779 | $230,049 | ($1,000) | |
Other comprehensive income, net of tax | -22,200 | -42,000 | -9,600 | -46,400 | -9,600 | 1,522 | -66,237 | 41,154 |
Comprehensive income | 107,700 | 58,900 | 43,100 | 110,000 | 277,301 | 163,812 | 40,154 | |
Parent | ||||||||
Net income | 129,900 | 100,900 | 52,700 | 156,400 | 275,779 | 210,489 | -18,383 | |
Other comprehensive income, net of tax | -22,200 | -42,000 | -9,600 | -46,500 | 1,522 | -66,237 | 41,154 | |
Comprehensive income | $107,700 | $58,900 | $43,100 | $109,900 | $277,301 | $144,252 | $22,771 |
SCHEDULE_ICONDENSED_FINANCIAL_4
SCHEDULE I-CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Details 4) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 6 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||||||||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Jun. 30, 2013 | Dec. 31, 2011 | Dec. 31, 2010 | Jun. 30, 2013 | Dec. 31, 2011 | Dec. 31, 2010 | Jun. 30, 2013 | Dec. 31, 2011 | Dec. 31, 2010 | Jun. 30, 2013 | Jun. 30, 2012 | Mar. 31, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Common Stock | Common Stock | Common Stock | Additional Paid-In Capital | Additional Paid-In Capital | Additional Paid-In Capital | Accumulated Deficit | Accumulated Deficit | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) | Parent | Parent | Parent | Parent | Parent | Parent | Parent | Parent | Parent | Parent | Parent | Parent | Parent | Parent | Parent | Parent | Parent | Parent | Parent | Parent | Parent | |||||||||||||||
Common Stock | Common Stock | Common Stock | Common Stock | Additional Paid-In Capital | Additional Paid-In Capital | Additional Paid-In Capital | Accumulated Deficit | Accumulated Deficit | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||||||||||||||||||
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests, Tax Effect | $0 | $9,798 | $0 | ||||||||||||||||||||||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||||||||||||||||||||||||||||||||||
Beginning Balance (Shares) | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | ||||||||||||||||||||||||||||||||||
Beginning Balance | 2,628,854 | 2,502,429 | 2,917,528 | 2,628,854 | 2,628,854 | 2,502,429 | 2,461,948 | 0 | 0 | 0 | 3,509,998 | 3,473,625 | 3,452,019 | -565,597 | -816,376 | -1,003,915 | -26,892 | -28,414 | 37,823 | 2,628,835 | 2,917,509 | 2,628,835 | 2,628,835 | 2,485,927 | 2,444,655 | 0 | 0 | 0 | 0 | 3,473,625 | 3,452,019 | 3,410,518 | -816,376 | -1,003,915 | -962,532 | -28,414 | 37,823 | -3,331 | |||||||||
Net loss attributable to The Hertz Corporation and Subsidiaries' common stockholder | 129,900 | -28,300 | 251,300 | 101,000 | -48,200 | 58,800 | 212,600 | 62,100 | -123,000 | 156,400 | 52,700 | 275,779 | 210,489 | -18,383 | 156,400 | 129,900 | 100,900 | 156,400 | 52,700 | 275,779 | 210,489 | -18,383 | 275,779 | 210,489 | -18,383 | ||||||||||||||||||||||
Dividends paid to Hertz Global Holdings, Inc. | 479,700 | -25,000 | -22,950 | -23,000 | 479,700 | -25,000 | -22,950 | -23,000 | -25,000 | -22,950 | -23,000 | ||||||||||||||||||||||||||||||||||||
Other comprehensive income | -22,200 | -42,000 | -9,600 | -46,400 | -9,600 | 1,522 | -66,237 | 41,154 | -46,400 | -22,200 | -42,000 | -9,600 | -46,500 | 1,522 | -66,237 | 41,154 | 1,522 | -66,237 | 41,154 | ||||||||||||||||||||||||||||
Stock-based employee compensation charges, net of tax of $0 | 19,700 | 29,855 | 31,093 | 36,560 | 19,700 | 29,855 | 31,093 | 36,560 | 29,855 | 31,093 | 36,560 | ||||||||||||||||||||||||||||||||||||
Excess tax benefits from exercise of stock options | -258 | -258 | -258 | ||||||||||||||||||||||||||||||||||||||||||||
Acquisition of remaining portion of non-controlling interest, net of tax of $9,798 | -28,230 | -15,287 | -15,287 | ||||||||||||||||||||||||||||||||||||||||||||
Proceeds from employee stock purchase plan | 2,800 | 5,030 | 4,208 | 3,774 | 2,800 | 5,030 | 4,208 | 3,774 | 5,030 | 4,208 | 3,774 | ||||||||||||||||||||||||||||||||||||
Hertz Holdings common and phantom shares issued to Directors | 1,488 | 1,592 | 1,425 | 1,488 | 1,592 | 1,425 | 1,488 | 1,592 | 1,425 | ||||||||||||||||||||||||||||||||||||||
Ending Balance (Shares) | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | ||||||||||||||||||||||||||||||||||
Ending Balance | 2,572,000 | 2,917,528 | 2,628,854 | 2,572,000 | 2,917,528 | 2,628,854 | 2,502,429 | 0 | 0 | 0 | 3,473,625 | 3,452,019 | -816,376 | -1,003,915 | -28,414 | 37,823 | 2,572,000 | 2,572,000 | 2,917,509 | 2,628,835 | 2,485,927 | 0 | 0 | 0 | 0 | 3,509,998 | 3,473,625 | 3,452,019 | -565,597 | -816,376 | -1,003,915 | -26,892 | -28,414 | 37,823 | |||||||||||||
Adjustment to Additional Paid in Capital, Income Tax Effect from Share-based Compensation, Net | 399 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||
Income Tax Effects Allocated Directly to Equity, Employee Stock Options | 0 | 474 | -258 | ||||||||||||||||||||||||||||||||||||||||||||
Proceeds from disgorgement of stockholder short-swing profits, tax | $6 | $29 | $3 |
SCHEDULE_ICONDENSED_FINANCIAL_5
SCHEDULE I-CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Details 5) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||
In Thousands, unless otherwise specified | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||
Net Income (loss) | $129,900 | ($28,300) | $251,300 | $101,000 | ($48,200) | $58,800 | $212,600 | $62,100 | ($123,000) | $156,400 | $52,700 | $275,779 | $210,489 | ($18,383) |
Cash flows from operating activities: | ||||||||||||||
Net cash provided by operating activities | 1,466,000 | 1,183,000 | 2,748,412 | 2,258,521 | 2,237,927 | |||||||||
Cash flows from investing activities: | ||||||||||||||
Increase (Decrease) in Restricted Cash | 175,400 | 130,100 | -261,605 | -101,766 | 160,516 | |||||||||
Payments to Acquire Revenue Earning Equipment | -6,825,500 | -5,711,000 | -9,613,239 | -9,454,311 | -8,440,872 | |||||||||
Proceeds from disposal of revenue earning equipment | 3,742,800 | 3,608,300 | 7,125,096 | 7,850,442 | 7,518,446 | |||||||||
Payments to Acquire Other Property, Plant, and Equipment | -168,100 | -137,200 | -312,786 | -281,695 | -179,209 | |||||||||
Proceeds from disposal of property and equipment | 42,500 | 56,400 | 137,694 | 53,814 | 38,905 | |||||||||
Capital Contributions to Subsidiaries | 0 | 0 | 0 | 0 | 0 | |||||||||
Distributions of Equity | 0 | 0 | 0 | 0 | 0 | |||||||||
Payments to Acquire Businesses, Net of Cash Acquired | -229,200 | -161,800 | -1,905,168 | -227,081 | -47,571 | |||||||||
Purchase of short-term investments, net | 0 | -32,891 | 3,491 | |||||||||||
Net cash used in investing activities | -3,264,100 | -2,215,800 | -4,747,290 | -2,192,902 | -943,568 | |||||||||
Cash flows from financing activities: | ||||||||||||||
Proceeds from issuance of long-term debt | 1,204,400 | 270,500 | 2,237,280 | 3,062,479 | 2,635,713 | |||||||||
Repayments of Long-term Debt | -320,700 | -643,100 | -952,144 | -3,649,300 | -2,954,233 | |||||||||
Repayments of Short-term Debt, Maturing in More than Three Months | -435,900 | -656,200 | -1,280,143 | -1,194,056 | -970,949 | |||||||||
Line of Credit Facility, Increase (Decrease) for Period, Net | 1,273,164 | -57,329 | 1,026,070 | |||||||||||
Dividends paid | -479,700 | -12,500 | -25,000 | -22,950 | -23,000 | |||||||||
Proceeds from employee stock purchase plan | 2,400 | 2,000 | 4,275 | 3,577 | 3,208 | |||||||||
Loan to Parent From Non-Guarantor | 0 | 0 | 0 | |||||||||||
Loan with Hertz Global Holdings, Inc. | 12,000 | -13,900 | -13,220 | -984 | -6,173 | |||||||||
Excess Tax Benefit (Tax Deficiency) from Share-based Compensation, Financing Activities | 0 | 0 | -258 | |||||||||||
Payments to Acquire Additional Interest in Subsidiaries | 0 | -38,000 | -38,000 | 0 | 0 | |||||||||
Payments of Financing Costs | -20,600 | -6,900 | -49,433 | -91,482 | -78,151 | |||||||||
Net cash provided by (used in) financing activities | 1,756,100 | 692,400 | 1,595,166 | -1,512,255 | 104,517 | |||||||||
Net decrease in cash and cash equivalents during the period | -50,200 | -345,200 | -397,973 | -1,442,798 | 1,388,539 | |||||||||
Cash and cash equivalents at beginning of period | 586,000 | 586,000 | 931,208 | 2,374,006 | 533,235 | 931,208 | 931,208 | 2,374,006 | 985,467 | |||||
Cash and cash equivalents at end of period | 483,000 | 533,235 | 586,000 | 586,000 | 931,208 | 483,000 | 586,000 | 533,235 | 931,208 | 2,374,006 | ||||
Parent | ||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||
Net Income (loss) | 129,900 | 100,900 | 156,400 | 52,700 | 275,779 | 210,489 | -18,383 | |||||||
Cash flows from operating activities: | ||||||||||||||
Adjustments to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities | 1,401,869 | 790,108 | 355,438 | |||||||||||
Net cash provided by operating activities | -365,700 | -219,000 | 1,677,648 | 1,000,597 | 337,055 | |||||||||
Cash flows from investing activities: | ||||||||||||||
Increase (Decrease) in Restricted Cash | -1,000 | 12,600 | 11,981 | -28,570 | 19,932 | |||||||||
Payments to Acquire Revenue Earning Equipment | -87,900 | -73,800 | -88,120 | -142,134 | -188,057 | |||||||||
Proceeds from disposal of revenue earning equipment | 47,700 | 54,400 | 79,390 | 163,330 | 169,451 | |||||||||
Payments to Acquire Other Property, Plant, and Equipment | -99,100 | -80,200 | -173,053 | -189,562 | -92,415 | |||||||||
Proceeds from disposal of property and equipment | 24,600 | 44,300 | 67,370 | 23,952 | 4,311 | |||||||||
Capital Contributions to Subsidiaries | -485,700 | -2,215,900 | -4,267,118 | -3,549,088 | -1,544,332 | |||||||||
Distributions of Equity | 651,000 | 2,220,600 | 1,829,256 | 2,590,025 | 1,877,095 | |||||||||
Payments to Acquire Businesses, Net of Cash Acquired | 0 | 0 | -1,708,520 | -214,384 | -35 | |||||||||
Purchase of short-term investments, net | 0 | -32,891 | 3,183 | |||||||||||
Net cash used in investing activities | 49,600 | -38,000 | -4,248,814 | -1,379,322 | 249,133 | |||||||||
Cash flows from financing activities: | ||||||||||||||
Proceeds from issuance of long-term debt | 250,000 | 260,000 | 2,210,000 | 2,455,309 | 1,209,866 | |||||||||
Repayments of Long-term Debt | -22,800 | -637,300 | -650,407 | -3,596,295 | -73,342 | |||||||||
Repayments of Short-term Debt, Maturing in More than Three Months | 0 | -26,800 | -26,775 | -29,224 | -2,615 | |||||||||
Line of Credit Facility, Increase (Decrease) for Period, Net | 220,000 | -29,128 | -18,907 | |||||||||||
Dividends paid | -479,700 | -12,500 | -25,000 | -22,950 | -23,000 | |||||||||
Proceeds from employee stock purchase plan | 2,400 | 2,000 | 4,275 | 3,577 | 3,208 | |||||||||
Loan to Parent From Non-Guarantor | 0 | 18,300 | 385,108 | 490,273 | 0 | |||||||||
Loan with Hertz Global Holdings, Inc. | 12,000 | -13,900 | -13,220 | -984 | -6,173 | |||||||||
Excess Tax Benefit (Tax Deficiency) from Share-based Compensation, Financing Activities | 0 | 0 | -258 | |||||||||||
Payments to Acquire Additional Interest in Subsidiaries | -38,000 | -38,000 | 0 | 0 | ||||||||||
Payments of Financing Costs | -7,900 | -4,200 | -35,215 | -81,229 | -29,111 | |||||||||
Net cash provided by (used in) financing activities | 379,000 | -42,400 | 2,030,766 | -810,651 | 1,059,668 | |||||||||
Net decrease in cash and cash equivalents during the period | 62,900 | -299,400 | -540,400 | -1,189,376 | 1,645,856 | |||||||||
Cash and cash equivalents at beginning of period | 265,600 | 565,002 | 1,754,378 | 24,602 | 565,002 | 565,002 | 1,754,378 | 108,522 | ||||||
Cash and cash equivalents at end of period | $87,500 | $24,602 | $565,002 | $87,500 | $24,602 | $565,002 | $1,754,378 |
Schedule_I_Parent_Co_Commitmen
Schedule I (Parent Co Commitments and Contingencies) (Details) (USD $) | Jun. 30, 2013 | Dec. 31, 2012 | |
Long-term Debt, Fiscal Year Maturity [Abstract] | |||
2013 | $5,744,100 | [1] | |
2014 | 2,124,400,000 | 1,100,000 | |
2015 | 1,140,000,000 | 1,900,000 | |
2016 | 366,500,000 | 300,000 | |
2017 | 2,819,100,000 | 200,000 | |
Thereafter | 3,903,900,000 | 5,800,000 | |
Debt, Interest and ASC 740-10 [Member] | |||
Long-term Debt, Fiscal Year Maturity [Abstract] | |||
Total | 6,186,700,000 | ||
2013 | 383,700,000 | ||
2014 | 42,700,000 | ||
2015 | 21,600,000 | ||
2016 | 21,600,000 | ||
2017 | 21,500,000 | ||
Thereafter | 5,695,600,000 | ||
Interest Payable, Current and Noncurrent [Abstract] | |||
Total | 2,241,100,000 | ||
2013 | 341,400,000 | ||
2014 | 338,000,000 | ||
2015 | 334,900,000 | ||
2016 | 326,500,000 | ||
2017 | 324,400,000 | ||
Thereafter | 575,900,000 | ||
ASC 740-10 Liability and Interest Schedule [Abstract] | |||
Total | 1,200,000 | ||
2013 | 1,200,000 | ||
Contractual Obligation, Fiscal Year Maturity [Abstract] | |||
Total | 8,429,000,000 | ||
Less than 1 Year | 726,300,000 | ||
More than 5 Years | 6,271,500,000 | ||
Contractual Obligation, Due in Second Year | 380,700,000 | ||
Contractual Obligation, Due in Third Year | 356,500,000 | ||
Contractual Obligation, Due in Fourth Year | 348,100,000 | ||
Contractual Obligation, Due in Fifth Year | 345,900,000 | ||
Operating Leases and Purchase Obligations [Member] | |||
Minimum obligations under existing agreements | |||
Total | 1,309,100,000 | ||
Less than 1 Year | 295,300,000 | ||
1-3 Years | 367,600,000 | ||
3-5 Years | 180,600,000 | ||
More than 5 Years | 465,600,000 | ||
Purchase Obligation, Fiscal Year Maturity [Abstract] | |||
Total | 4,129,100,000 | ||
Less than 1 Year | 4,072,300,000 | ||
1-3 Years | 52,900,000 | ||
3-5 Years | 3,900,000 | ||
More than 5 Years | 0 | ||
Contractual Obligation, Fiscal Year Maturity [Abstract] | |||
Total | 5,438,200,000 | ||
Less than 1 Year | 4,367,600,000 | ||
1-3 Years | 420,500,000 | ||
3-5 Years | 184,500,000 | ||
More than 5 Years | $465,600,000 | ||
[1] | Our short-term borrowings as of December 31, 2012 include, among other items, the amounts outstanding under the Senior ABL Facility, HVF U.S. Fleet Variable Funding Notes, RCFC U.S. Fleet Variable Funding Notes, Donlen GN II Variable Funding Notes, U.S. Fleet Financing Facility, European Revolving Credit Facility, European Securitization, Hertz-Sponsored Canadian Securitization, Dollar Thrifty-Sponsored Canadian Securitization, Australian Securitization, Brazilian Fleet Financing Facility and Capitalized Leases. These amounts are reflected as short-term borrowings, regardless of the facility maturity date, as these facilities are revolving in nature and/or the outstanding borrowings have maturities of three months or less. As of December 31, 2012, short-term borrowings had a weighted average interest rate of 1.8%. |
Schedule_I_Parent_Co_Distribut
Schedule I (Parent Co Distribution of Equity) (Details) (USD $) | 6 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Condensed Financial Statements, Captions [Line Items] | |||||
Distributions of Equity | $0 | $0 | $0 | $0 | $0 |
Parent | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Distributions of Equity | $2,604,600 | $3,143,400 | $2,256,700 |
SCHEDULE_IIVALUATION_AND_QUALI1
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS (Details) (USD $) | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | ||
Allowance for doubtful accounts: | |||||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||||
Balance at beginning of period | $20,282 | $19,708 | $21,268 | ||
Charged to Expense | 34,144 | 28,164 | 19,667 | ||
Translation Adjustments | 28 | 68 | -695 | ||
Deductions | -29,341 | -27,658 | [1] | -20,532 | [1] |
Balance at end of period | 25,113 | 20,282 | 19,708 | ||
Tax valuation allowances: | |||||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||||
Balance at beginning of period | 186,710 | 185,807 | 167,812 | ||
Charged to Expense | 35,805 | -2,528 | 27,473 | ||
Translation Adjustments | 3,930 | 3,431 | -9,478 | ||
Deductions | 0 | 0 | 0 | ||
Balance at end of period | $226,445 | $186,710 | $185,807 | ||
[1] | Amounts written off, net of recoveries. |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - DOLLAR THRIFTY (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Dec. 31, 2010 | Sep. 30, 2010 | Jun. 30, 2010 | Mar. 31, 2010 | Sep. 30, 2012 | Sep. 30, 2011 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 |
Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | |||||||||||||||
REVENUES: | ||||||||||||||||||||||||||||
Vehicle rentals | $2,329,500 | $1,889,600 | $4,414,300 | $3,547,900 | $7,456,111 | $6,929,584 | $6,355,205 | $442,336 | $435,578 | $1,160,322 | $1,146,041 | $1,484,324 | $1,473,023 | $1,472,918 | ||||||||||||||
Other | 800 | 500 | 1,500 | 1,100 | 181,500 | 159,985 | 137,509 | 18,254 | 16,144 | 51,928 | 49,157 | 64,604 | 64,137 | 73,331 | ||||||||||||||
Total revenues | 2,714,600 | 2,318,600 | 2,516,200 | 2,225,100 | 1,960,900 | 2,013,800 | 2,432,300 | 2,072,300 | 1,780,000 | 5,151,200 | 4,186,100 | 9,020,807 | 8,298,380 | 7,562,534 | 460,590 | 353,730 | 451,722 | 395,129 | 348,347 | 349,059 | 443,544 | 396,227 | 348,330 | 1,212,250 | 1,195,198 | 1,548,928 | 1,537,160 | 1,546,249 |
COSTS AND EXPENSES: | ||||||||||||||||||||||||||||
Direct vehicle and operating | 1,405,900 | 1,188,900 | 2,757,100 | 2,303,100 | 4,795,788 | 4,566,378 | 4,283,394 | 215,790 | 214,536 | 596,463 | 583,799 | 751,468 | 745,535 | 768,456 | ||||||||||||||
Vehicle depreciation and lease charges, net | 641,100 | 519,800 | 1,228,100 | 1,034,900 | 2,148,158 | 1,905,739 | 1,868,147 | 89,131 | 63,299 | 188,368 | 203,983 | 270,957 | 299,200 | 426,092 | ||||||||||||||
Selling, general and administrative | 274,800 | 206,600 | 526,300 | 414,300 | 945,581 | 745,117 | 664,442 | 54,454 | 47,851 | 147,479 | 145,641 | 191,043 | 209,341 | 200,389 | ||||||||||||||
Interest expense, net of interest income | 592,886 | 644,703 | 714,224 | 12,206 | 19,627 | 44,601 | 58,899 | 77,462 | 89,303 | 96,560 | ||||||||||||||||||
Total expenses | 2,488,900 | 2,053,500 | 4,839,500 | 4,038,500 | 8,517,955 | 7,924,485 | 7,530,212 | 371,581 | 345,313 | 976,911 | 992,322 | 1,290,930 | 1,344,436 | 1,494,089 | ||||||||||||||
(Increase) decrease in fair value of derivatives | -3,600 | -900 | 4,326 | -7,990 | 10,810 | 40 | 523 | 525 | -3,367 | -3,244 | -28,694 | -28,848 | ||||||||||||||||
Income before income taxes | 225,700 | -26,900 | 382,100 | 171,700 | -24,000 | 105,400 | 308,200 | 107,000 | -146,700 | 311,700 | 147,600 | 502,852 | 373,895 | 32,322 | 88,969 | 105,886 | 234,814 | 206,243 | 261,242 | 221,418 | 81,008 | |||||||
INCOME TAX EXPENSE | 95,800 | 70,700 | 155,300 | 94,900 | 227,073 | 143,846 | 33,322 | 33,469 | 39,265 | 89,516 | 80,594 | 101,692 | 90,202 | 35,986 | ||||||||||||||
Net income attributable to The Hertz Corporation and Subsidiaries' common stockholder | 129,900 | -28,300 | 251,300 | 101,000 | -48,200 | 58,800 | 212,600 | 62,100 | -123,000 | 156,400 | 52,700 | 275,779 | 210,489 | -18,383 | 55,500 | 33,901 | 66,621 | 42,505 | 16,523 | 12,496 | 49,165 | 42,263 | 27,292 | 145,298 | 125,649 | 159,550 | 131,216 | 45,022 |
Basic EPS (in dollars per share) | $1.99 | $1.16 | $2.30 | $1.47 | $0.57 | $0.44 | $1.72 | $1.48 | $0.96 | $5.15 | $4.35 | $5.51 | $4.58 | $1.98 | ||||||||||||||
Diluted EPS (in dollars per share) | $1.91 | $1.08 | $2.13 | $1.36 | $0.53 | $0.41 | $1.62 | $1.40 | $0.91 | $4.94 | $4.03 | $5.11 | $4.34 | $1.88 | ||||||||||||||
Comprehensive income attributable to The Hertz Corporation and Subsidiaries' common stockholder | $107,700 | $58,900 | $110,000 | $43,100 | $277,301 | $144,252 | $22,771 | $60,667 | $60,470 | $159,277 | $127,358 | $164,262 | $137,261 | $56,036 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - DOLLAR THRIFTY (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
In Thousands, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2012 | Sep. 30, 2011 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 |
Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | ||||||||
Interest income | $2,000 | $500 | $3,800 | $1,600 | $4,902 | $5,551 | $12,315 | $370 | $306 | $1,334 | $1,053 | $1,467 | $1,584 | $6,218 |
CONDENSED_CONSOLIDATED_BALANCE2
CONDENSED CONSOLIDATED BALANCE SHEETS - DOLLAR THRIFTY (USD $) | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | Dec. 31, 2008 |
In Thousands, unless otherwise specified | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | |||||||
ASSETS | |||||||||||||
Cash and cash equivalents | $483,000 | $533,235 | $586,000 | $586,000 | $931,208 | $2,374,006 | $985,467 | $456,869 | $508,648 | $499,473 | $463,153 | $400,404 | $229,636 |
Restricted cash and investments | 250,144 | 353,265 | 277,407 | ||||||||||
Receivables, net | 1,656,000 | 1,886,596 | 1,616,382 | 128,217 | 95,360 | 69,456 | |||||||
Prepaid expenses and other assets | 763,200 | 461,502 | 416,134 | 71,980 | 65,959 | 67,482 | |||||||
Revenue-earning vehicles, net | 15,706,000 | 12,908,336 | 10,105,409 | 1,875,607 | 1,467,835 | 1,341,822 | |||||||
Property and equipment, net | 1,465,600 | 1,436,386 | 1,251,854 | 77,887 | 84,278 | 90,228 | 96,198 | ||||||
Income taxes receivable | 4,453 | 18,786 | 65,803 | ||||||||||
Software, net | 620,300 | 686,500 | 354,000 | 19,438 | 21,535 | 24,177 | |||||||
Total assets | 25,930,900 | 23,290,209 | 17,667,332 | 2,884,595 | 2,615,666 | 2,499,528 | |||||||
LIABILITIES: | |||||||||||||
Accounts payable | 1,484,500 | 999,061 | 897,489 | 47,768 | 54,377 | 45,483 | |||||||
Accrued liabilities | 1,182,300 | 1,178,460 | 1,126,338 | 136,567 | 124,185 | 167,545 | |||||||
Deferred income taxes | 2,681,140 | 1,661,872 | 392,524 | 342,962 | 242,930 | ||||||||
Vehicle insurance reserves | 82,358 | 86,515 | 107,720 | ||||||||||
Debt and other obligations | 17,394,200 | 15,014,474 | 10,907,849 | 1,481,137 | 1,399,955 | 1,397,243 | |||||||
Total liabilities | 23,358,900 | 20,372,681 | 15,038,478 | 2,140,354 | 2,007,994 | 1,960,921 | |||||||
COMMITMENTS AND CONTINGENCIES | |||||||||||||
STOCKHOLDERS' EQUITY: | |||||||||||||
Preferred stock, $.01 par value: Authorized 10,000,000 shares; none outstanding | |||||||||||||
Common Stock, Value, Issued | 0 | 0 | 0 | 364 | 361 | 352 | |||||||
Additional capital | 3,534,200 | 3,509,998 | 3,473,625 | 956,483 | 848,843 | 940,844 | |||||||
Retained earnings (deficit) | -888,900 | -565,597 | -816,376 | 142,879 | -2,419 | -161,969 | |||||||
Accumulated other comprehensive income (loss) | -73,300 | -26,892 | -38,000 | -28,414 | 6,362 | -7,617 | -12,329 | -18,374 | -29,388 | ||||
Treasury stock, at cost (8,328,031 and 6,491,719 shares, respectively) | -361,847 | -231,496 | -228,291 | ||||||||||
Total The Hertz Corporation and Subsidiaries stockholder's equity | 2,572,000 | 2,917,509 | 2,628,835 | 744,241 | 607,672 | 538,607 | 393,914 | 208,420 | |||||
Total liabilities and equity | $25,930,900 | $23,290,209 | $17,667,332 | $2,884,595 | $2,615,666 | $2,499,528 |
CONDENSED_CONSOLIDATED_BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - DOLLAR THRIFTY (USD $) | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2012 | Dec. 31, 2011 | 24-May-11 | Dec. 31, 2010 | Oct. 31, 2009 |
Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | ||||
Preferred stock, par value (in dollars per share) | $0.01 | $0.01 | $0.01 | |||||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | 10,000,000 | |||||
Preferred stock, shares outstanding | 0 | 0 | 0 | |||||
Common stock, par value (in dollars per share) | $0.01 | $0.01 | $0.01 | $0.01 | $0.01 | $0.01 | $0.01 | $0.01 |
Common stock, shares authorized | 3,000 | 3,000 | 3,000 | 200,000,000 | 50,000,000 | 50,000,000 | ||
Common stock, shares issued | 100 | 100 | 100 | 36,386,148 | 36,048,606 | 35,197,167 | ||
Common stock, shares outstanding | 100 | 100 | 100 | 28,058,117 | 29,556,887 | 28,763,452 | ||
Treasury stock, shares | 8,328,031 | 6,491,719 | 6,433,715 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - DOLLAR THRIFTY (USD $) | 9 Months Ended |
Sep. 30, 2012 | |
Dollar Thrifty Automotive Group Inc | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |
Net Income (loss) | $145,298,000 |
Depreciation: | |
Vehicle depreciation | 230,391,000 |
Non-vehicle depreciation | 13,203,000 |
Net gains from disposition of revenue-earning vehicles | -42,023,000 |
Amortization | 5,520,000 |
Performance share incentive, stock option and restricted stock plans | 4,974,000 |
Interest income earned on restricted cash and investments | -524,000 |
Deferred income taxes | 49,369,000 |
Swap termination reclassification | 8,488,000 |
Change in fair value of derivatives | 525,000 |
Change in assets and liabilities, net of acquisitions: | |
Income taxes payable/receivable | 14,333,000 |
Receivables | -11,443,000 |
Prepaid expenses and other assets | 2,170,000 |
Accounts payable | 888,000 |
Accrued liabilities | 13,357,000 |
Vehicle insurance reserves | -4,157,000 |
Other | 4,401,000 |
Net cash provided by operating activities | 434,770,000 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |
Payments to Acquire Revenue Earning Equipment | -1,380,617,000 |
Revenue-earning vehicles-Proceeds from sales | 757,091,000 |
Net change in restricted cash and investments | 103,645,000 |
Property, equipment and software-Purchases | -13,901,000 |
Property, equipment and software-Proceeds from sales | 3,491,000 |
Net cash used in investing activities | -530,291,000 |
Debt and other obligations: | |
Proceeds from vehicle debt and other obligations | 581,169,000 |
Payments of vehicle debt and other obligations | -500,000,000 |
Issuance of common shares | 1,694,000 |
Net settlement of employee withholding taxes on share-based awards | -1,215,000 |
Purchase of common stock for the treasury | -29,136,000 |
Payments of Financing Costs | -8,770,000 |
Net cash provided by (used in) financing activities | 43,742,000 |
Net decrease in cash and cash equivalents during the period | -51,779,000 |
CASH AND CASH EQUIVALENTS: | |
Cash and cash equivalents at beginning of period | 508,648,000 |
Cash and cash equivalents at end of period | 456,869,000 |
Cash paid for (refund of): | |
Interest | 38,769,000 |
Income taxes | 25,749,000 |
SUPPLEMENTAL DISCLOSURES OF INVESTING AND FINANCING NONCASH ACTIVITIES: | |
Sales and incentives related to revenue-earning vehicles included in receivables | 45,228,000 |
Purchases of revenue-earning vehicles included in accounts payable | 581,000 |
Purchases of property, equipment and software included in accounts payable | $16,000 |
BASIS_OF_PRESENTATION_AND_SIGN
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES - DOLLAR THRIFTY | 12 Months Ended | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | ||
Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | |||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies | 1. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | 1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Principles of Consolidation | ||||
The consolidated financial statements include the accounts of Hertz Holdings and our wholly owned and majority owned domestic and international subsidiaries. In the event that Hertz Holdings is a primary beneficiary of a variable interest entity, the assets, liabilities, and results of operations of the variable interest entity will be included in our consolidated financial statements. All significant intercompany transactions have been eliminated in consolidation. | The accompanying condensed consolidated financial statements include the accounts of Dollar Thrifty Automotive Group, Inc. ("DTG") and its subsidiaries. DTG's significant wholly owned subsidiaries include DTG Operations, Inc., Thrifty, Inc., Dollar Rent A Car, Inc. and Rental Car Finance Corp. ("RCFC"). Thrifty, Inc. is the parent company of Thrifty Rent-A-Car System, Inc., which is the parent company of Dollar Thrifty Automotive Group Canada Inc. ("DTG Canada"). The term the "Company" is used to refer to DTG individually or collectively with its consolidated subsidiaries, as the context may require. | Dollar Thrifty Automotive Group, Inc. ("DTG") is the successor to Pentastar Transportation Group, Inc. Prior to December 23, 1997, DTG was a wholly owned subsidiary of Chrysler LLC (such entity or its successor entity, Chrysler Group LLC, as the context may require, and the relevant entity's subsidiaries and members of its affiliated group are hereinafter referred to as "Chrysler"). On December 23, 1997, DTG completed an initial public offering of all its outstanding common stock owned by Chrysler together with additional shares issued by DTG. | ||
Use of Estimates and Assumptions | ||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America, or “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. | The accounting policies set forth in Note 1 of notes to DTG's audited consolidated financial statements contained elsewhere in this prospectus have been followed in preparing the accompanying condensed consolidated financial statements. | The Company operates under a corporate structure that combines the management of operations and administrative functions for both the Dollar and Thrifty brands. Management makes business and operating decisions on an overall company basis. Financial results are not available by brand. | ||
Significant estimates inherent in the preparation of the consolidated financial statements include depreciation of revenue earning equipment, reserves for litigation and other contingencies, accounting for income taxes and related uncertain tax positions, pension and postretirement benefit costs, the fair value of assets and liabilities acquired in business combinations, the recoverability of long-lived assets, useful lives and impairment of long-lived tangible and intangible assets including goodwill, valuation of stock based compensation, public liability and property damage reserves, reserves for restructuring, allowance for doubtful accounts, and fair value of derivatives, among others. | ||||
Reclassifications | The condensed consolidated financial statements and notes thereto for interim periods included herein have not been audited by an independent registered public accounting firm. The condensed consolidated financial statements and notes thereto have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the Company's opinion, it made all adjustments (which include only normal recurring adjustments) necessary for a fair presentation of the results of operations for the interim periods presented. Results for interim periods are not necessarily indicative of results for a full year. | DTG's significant wholly owned subsidiaries include DTG Operations, Inc., Dollar Rent A Car, Inc., Thrifty, Inc. and Rental Car Finance Corp. ("RCFC"). Thrifty, Inc. is the parent company of Thrifty Car Sales, Inc. and Thrifty Rent-A-Car System, Inc., which is the parent company of Dollar Thrifty Automotive Group Canada Inc. ("DTG Canada"). RCFC is a special purpose financing entity, which was formed in 1995 and is appropriately consolidated with DTG and subsidiaries. RCFC is a separate legal entity whose assets are not available to satisfy any claims of creditors of DTG or any of its other subsidiaries. The term the "Company" is used to refer to DTG, individually or collectively with its consolidated subsidiaries, as the context may require. Dollar Rent A Car, Inc., the Dollar brand and DTG Operations, Inc. operating under the Dollar brand are individually and collectively referred to hereinafter as "Dollar". Thrifty, Inc., Thrifty Rent-A-Car System, Inc., Thrifty Car Sales, Inc., the Thrifty brand and DTG Operations, Inc. operating under the Thrifty brand are individually and collectively referred to hereinafter as "Thrifty". Intercompany accounts and transactions have been eliminated in consolidation. | ||
Certain prior period amounts have been reclassified to conform with current year presentation. | ||||
Acquisition Accounting | Nature of Business—The Company operates in the U.S. and Canada, and through its Dollar and Thrifty brands is primarily engaged in the business of the daily rental of vehicles to business and leisure customers through company-owned stores. The Company also sells vehicle rental franchises worldwide and provides sales and marketing, reservations, data processing systems, insurance and other services to franchisees. RCFC provides vehicle financing to the Company. | |||
We account for business combinations using the acquisition method, which requires an allocation of the purchase price of an acquired entity to the assets acquired and liabilities assumed based on their estimated fair values at the date of acquisition. Goodwill represents the excess of the purchase price over the net tangible and intangible assets acquired. | ||||
Revenue Recognition | Estimates—The preparation of the Company's consolidated financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts and disclosures in the consolidated financial statements. Actual results could differ materially from those estimates. | |||
Rental and rental related revenue (including cost reimbursements from customers where we consider ourselves to be the principal versus an agent) are recognized over the period the revenue earning equipment is rented or leased based on the terms of the rental or leasing contract. Maintenance management administrative fees are recognized monthly and maintenance management service revenue is recognized when services are performed. Revenue related to new equipment sales and consumables is recognized at the time of delivery to, or pick-up by, the customer and when collectability is reasonably assured. Fees from our licensees are recognized over the period the underlying licensees' revenue is earned (over the period the licensees' revenue earning equipment is rented). Certain truck and equipment leases are originated with the intention of syndicating to banks, and upon the sale of rights to these direct financing leases, the net gain is recorded in revenue. | ||||
Sales tax amounts collected from customers have been recorded on a net basis. | Cash and Cash Equivalents—Cash and cash equivalents include cash on hand and on deposit, including highly liquid investments with initial maturities of three months or less. | |||
Cash and Cash Equivalents and Other | ||||
We consider all highly liquid debt instruments purchased with an original maturity of three months or less to be cash equivalents. | Cash and Cash Equivalents—Required Minimum Balance—In 2009, the Company amended its Senior Secured Credit Facilities (hereinafter defined). Under the terms of that amendment, the Company was required to maintain a minimum of $100 million at all times. In February 2011, the Company further amended its Senior Secured Credit Facilities, eliminating the requirement to maintain a minimum of $100 million of cash and cash equivalents and replacing it with certain other covenants. | |||
In our consolidated statements of cash flows, we net cash flows from revolving borrowings in the line item “Proceeds (payments) under the revolving lines of credit, net.” The contractual maturities of such borrowings may exceed 90 days in certain cases. | ||||
Restricted Cash and Cash Equivalents | Restricted Cash and Investments—Restricted cash and investments are restricted for the acquisition of vehicles and other specified uses under the rental car asset-backed note indenture and other agreements (Note 8). A portion of these funds is restricted due to the Like-Kind Exchange Program (hereinafter defined) for deferred tax gains on eligible vehicle remarketing. As permitted by the indenture, these funds are primarily held in highly rated money market funds with investments primarily in government and corporate obligations. Restricted cash and investments are excluded from cash and cash equivalents. Interest earned on restricted cash and investments was $0.4 million, $0.7 million and $3.2 million, for 2011, 2010 and 2009, respectively, and remains in restricted cash and investments. | |||
Restricted cash and cash equivalents includes cash and cash equivalents that are not readily available for our normal disbursements. Restricted cash and cash equivalents are restricted for the purchase of revenue earning vehicles and other specified uses under our Fleet Debt facilities, for our Like-Kind Exchange Program, or “LKE Program,” and to satisfy certain of our self-insurance regulatory reserve requirements. These funds are primarily held in highly rated money market funds with investments primarily in government and corporate obligations. Restricted cash and cash equivalents are excluded from cash and cash equivalents. | ||||
Concentration of Credit Risk | Concentration of Credit Risk—Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, cash and cash equivalents—required minimum balance, restricted cash and investments, interest rate swaps and caps, vehicle manufacturer receivables and trade receivables. The Company limits its exposure on cash and cash equivalents, cash and cash equivalents—required minimum balance and restricted cash and investments by investing in Aaa or P-1 rated funds and short-term time deposits with a diverse group of high quality financial institutions. The Company's exposure relating to interest rate swaps and caps is mitigated by diversifying the financial instruments among various counterparties, which consist of major financial institutions. Receivables from vehicle manufacturers consist primarily of amounts due under guaranteed residual, buyback, incentive and promotion programs. The Company's financial condition and results of operations could be adversely affected if one or more of its primary vehicle manufacturers were unable to meet their obligations to the Company. Concentrations of credit risk with respect to trade receivables are limited due to the large number of customers comprising the Company's customer base and their dispersion across different geographic areas. Additionally, the Company limits its exposure to credit risk through performing credit reviews and monitoring the financial strength of its significant accounts. | |||
Our cash and cash equivalents are invested in various investment grade institutional money market accounts and 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. We seek to mitigate such risks by spreading the risk across multiple counterparties and monitoring the risk profiles of these counterparties. In addition, we have credit risk from derivative financial instruments used in hedging activities. We limit our exposure relating to derivative financial instruments by diversifying the financial instruments among various counterparties, which consist of major financial institutions. | ||||
Receivables | Allowance for Doubtful Accounts—An allowance for doubtful accounts is generally established during the period in which receivables are recorded. The allowance is maintained at a level deemed appropriate based on loss experience and other factors affecting collectability. | |||
Receivables are stated net of allowances for doubtful accounts and represent credit extended to manufacturers and customers that satisfy defined credit criteria. The estimate of the allowance for doubtful accounts is based on our historical experience and our judgment as to the likelihood of ultimate payment. Actual receivables are written-off against the allowance for doubtful accounts when we determine the balance will not be collected. Bad debt expense is reflected as a component of "Selling, general and administrative" in our consolidated statements of operations. | ||||
Property and Equipment | Financing Issue Costs—Financing issue costs related to vehicle debt and the Senior Secured Credit Facilities are deferred and amortized to interest expense over the term of the related debt using the effective interest method. | |||
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: | ||||
Revenue-Earning Vehicles and Related Vehicle Depreciation Expense—Revenue-earning vehicles are stated at cost, net of related discounts. At December 31, 2011, Non-Program Vehicles accounted for approximately 96% of the Company's total fleet. | ||||
Buildings | 3 to 50 years | The Company must estimate the expected residual values of Non-Program Vehicles at the expected time of disposal to determine monthly depreciation rates. The estimation of residual values requires the Company to make assumptions regarding the age and mileage of the car at the time of disposal, as well as the general used vehicle market conditions at the time of sale, including the impact of seasonality on vehicle residuals. The Company evaluates estimated residual values at least quarterly, and adjusts depreciation rates accordingly, on a prospective basis. Differences between actual residual values and those estimated by the Company result in a gain or loss on disposal and are recorded as an adjustment to depreciation expense. Actual timing of disposal either shorter or longer than the life used for depreciation purposes could result in a loss or gain on sale. Vehicle rental companies bear residual value risk for these vehicles, which are referred to as "Non-Program Vehicles". Generally, the average holding term for Non-Program Vehicles is approximately 18 to 22 months. | ||
Furniture and fixtures | 1 to 15 years | |||
Capitalized internal use software | 1 to 15 years | The Company is required to depreciate the vehicle according to the terms of the guaranteed depreciation or repurchase program ("Program Vehicles") and in doing so is guaranteed to receive the full net book value in proceeds upon the sale of the vehicle. In some cases, the sales proceeds are received directly from auctions, with any shortfall in value being paid by the vehicle manufacturer. With certain other vehicle manufacturers, the entire balance of proceeds from vehicle sales comes directly from the manufacturer. In either case, the Company bears the risk of collectability on the receivable from the vehicle manufacturer. The Company monitors its vehicle manufacturer receivables based on time outstanding, manufacturer strength and length of the relationship. Generally, the average holding term for Program Vehicles is approximately six to eight months. | ||
Service cars and service equipment | 1 to 13 years | |||
Other intangible assets | 3 to 20 years | Property and Equipment—Property and equipment are recorded at cost and are depreciated using principally the straight-line method over the estimated useful lives of the related assets. Estimated useful lives generally range from ten to 30 years for buildings and improvements and one to seven years for furniture and equipment. Leasehold improvements are amortized over the estimated useful lives of the related assets or leases, whichever is shorter. | ||
Leasehold improvements | The shorter of their economic lives or the lease term | |||
We follow the practice of charging maintenance and repairs, including the cost of minor replacements, to maintenance expense accounts. Costs of major replacements of units of property are capitalized to property and equipment accounts and depreciated on the basis indicated above. Gains and losses on dispositions of property and equipment are included in income as realized. During the years ended December 31, 2012 and 2011, gains from the dispositions of property and equipment of $6.3 million and $43.1 million, respectively, were included in "Direct operating" in our consolidated statements of operations. | Software—Software is recorded at cost and amortized using the straight-line method generally ranging from three to five years. The remaining useful life of software is evaluated annually to assess whether events and circumstances warrant a revision to the remaining amortization period. | |||
Revenue Earning Equipment | ||||
Revenue earning equipment is stated at cost, net of related discounts. Useful lives are as follows: | Website Development Costs—The Company capitalizes qualifying internal-use software development, including Website development, incurred subsequent to the completion of the preliminary project stage. Development costs are amortized over the shorter of the expected useful life of the software or five years. Costs related to planning, maintenance, and minor upgrades are expensed as incurred. | |||
Long-Lived Assets—The Company reviews the value of long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable based upon estimated future cash flows and records an impairment charge, equaling the excess of the carrying value over the estimated fair value, if the carrying value exceeds estimated future cash flows. | ||||
Cars | 4 to 28 months | |||
Other equipment | 24 to 108 months | Accounts Payable—Book overdrafts of $19.0 million and $17.0 million, which represent outstanding checks not yet presented to the bank, are included in accounts payable to reflect the Company's outstanding obligations at December 31, 2011 and 2010, respectively. These amounts do not represent bank overdrafts, which would constitute checks presented in excess of cash on hand, and would be effectively a loan to the Company. | ||
Generally, when revenue earning equipment is acquired, we estimate the period that we will hold the asset, primarily based on historical measures of the amount of rental activity (e.g., automobile mileage and equipment usage) and the targeted age of equipment at the time of disposal. We also estimate the residual value of the applicable revenue earning equipment at the expected time of disposal. The residual values for rental vehicles are affected by many factors, including make, model and options, age, physical condition, mileage, sale location, time of the year and channel of disposition (e.g., auction, retail, dealer direct). The residual value for rental equipment is affected by factors which include equipment age and amount of usage. Depreciation is recorded on a straight-line basis 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 vehicle and equipment sales can also be affected by external factors such as the economy, natural disasters, fuel prices and incentives offered by manufacturers of new cars. These key factors are considered when estimating future residual values and assessing depreciation rates. As a result of this ongoing assessment, we make periodic adjustments to depreciation rates of revenue earning equipment in response to changed market conditions. Upon disposal of revenue earning equipment, depreciation expense is adjusted for the difference between the net proceeds received and the remaining net book value. | ||||
Within Donlen, revenue earning equipment is under longer term lease agreements with our customers. These leases contain provisions whereby we have a contracted residual value guaranteed to us by the lessee, such that we do not experience any gains or losses on the disposal of these vehicles. Therefore depreciation rates on these vehicles are not adjusted at any point in time per the associated lease contract. | Derivative Instruments—The Company records all derivatives on the balance sheet as either assets or liabilities measured at their fair value and changes in the derivatives' fair value are recognized currently in earnings unless specific hedge accounting criteria are met. The Company has entered into interest rate swap and cap agreements, which do not qualify for hedge accounting treatment; therefore, the changes in the interest rate swap and cap agreements' fair values have been recognized as an (increase) decrease in fair value of derivatives in the consolidated statements of income. The Company has also entered into interest rate swap agreements which constituted cash flow hedges and qualified for hedge accounting treatment; therefore, changes in fair value are recorded in accumulated other comprehensive loss (Note 9). All cash flows associated with cash flow hedges are classified in operating activities in the Consolidated Statements of Cash Flows. | |||
Environmental Liabilities | ||||
The use of automobiles and other vehicles is subject to various governmental controls designed to limit environmental damage, including that caused by emissions and noise. Generally, these controls are met by the manufacturer, except in the case of occasional equipment failure requiring repair by us. To comply with environmental regulations, measures are taken at certain locations to reduce the loss of vapor during the fueling process and to maintain, upgrade and replace underground fuel storage tanks. We also incur and provide for expenses for the cleanup of petroleum discharges and other alleged violations of environmental laws arising from the disposition of waste products. We do not believe that we will be required to make any material capital expenditures for environmental control facilities or to make any other material expenditures to meet the requirements of governmental authorities in this area. Liabilities for these expenditures are recorded at undiscounted amounts when it is probable that obligations have been incurred and the amounts can be reasonably estimated. | Vehicle Insurance Reserves—Provisions for public liability and property damage and supplemental liability insurance ("SLI") on self-insured claims are made by charges to direct vehicle and operating expense. Accruals for such charges are based upon actuarially determined evaluations of estimated ultimate liabilities on reported and unreported claims, prepared on a semi-annual basis. Historical data related to the amount and timing of payments for self-insured claims is utilized in preparing the actuarial evaluations. The accrual for public liability and property damage claims is discounted based upon the actuarially determined estimated timing of payments to be made in the future. The Company records expense related to public liability and property damage and SLI on a monthly basis based on rental volume and projections of ultimate losses, expenses, premiums and administrative costs that are derived from historical accident claim experience and trends. Management reviews the actual timing of payments as compared with the semi-annual actuarial estimate of timing of payments and has determined that there has been no material differences in the timing of payments for each of the three years in the period ended December 31, 2011. Because of less predictability in the estimated timing of payments, self-insured reserves for SLI are not discounted. | |||
Public Liability and Property Damage | ||||
The obligation for public liability and property damage on self-insured U.S. and international vehicles and 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 our estimates change or if actual results differ from these assumptions, the amount of the recorded liability is adjusted to reflect these results. | Foreign Currency Translation—Foreign assets and liabilities are translated using the exchange rate in effect at the balance sheet date, and results of operations are translated using an average rate for the period. Translation adjustments are accumulated and reported as a component of accumulated other comprehensive loss. | |||
Pension Benefit Obligations | ||||
Our 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. Actual results that differ from our assumptions are accumulated and amortized over future periods and, therefore, generally affect our recognized expense in such future periods. While we believe that the assumptions used are appropriate, significant differences in actual experience or significant changes in assumptions would affect our pension costs and obligations. | Revenue Recognition—Revenues from vehicle rentals are recognized as earned on a daily basis under the related rental contracts with customers. Revenues from leasing vehicles to franchisees are principally under operating leases with fixed monthly payments and are recognized ratably as earned over the lease terms. Revenues from fees and services include providing sales and marketing, reservations, information systems and other services to franchisees. Revenues from these services are generally based on a percentage of franchisee rental revenue or upon providing reservations and are recognized as earned on a monthly basis. Initial franchise fees are recognized upon substantial completion of all material services and conditions of the franchise sale, which coincides with the date of sale and commencement of operations by the franchisee. | |||
Foreign Currency Translation and Transactions | ||||
Assets and liabilities of international subsidiaries are translated at the rate of exchange in effect on the balance sheet date; income and expenses are translated at the average rate of exchange prevailing during the year. The related translation adjustments are reflected in “Accumulated other comprehensive loss” in the equity section of our consolidated balance sheets. As of December 31, 2012 and 2011, the accumulated foreign currency translation gain was $102.7 million and $91.3 million, respectively. Foreign currency gains and losses resulting from transactions are included in earnings. | Advertising Costs—Advertising costs are primarily expensed as incurred. The Company incurred advertising expense of $20.1 million, $20.9 million and $21.2 million, for 2011, 2010 and 2009, respectively. | |||
Derivative Instruments | ||||
We are exposed to a variety of market risks, including the effects of changes in interest rates, gasoline and diesel fuel prices and foreign currency exchange rates. We manage our exposure to these market risks through our regular operating and financing activities and, when deemed appropriate, through the use of derivative financial instruments. Derivative financial instruments are viewed as risk management tools and have not been used for speculative or trading purposes. In addition, derivative financial instruments are entered into with a diversified group of major financial institutions in order to manage our exposure to counterparty nonperformance on such instruments. We account for all derivatives in accordance with GAAP, which requires that all derivatives be recorded on the balance sheet as either assets or liabilities measured at their fair value. The effective portion of changes in fair value of derivatives designated as cash flow hedging instruments is recorded as a component of other comprehensive income. The ineffective portion is recognized currently in earnings within the same line item as the hedged item, based upon the nature of the hedged item. For derivative instruments that are not part of a qualified hedging relationship, the changes in their fair value are recognized currently in earnings. See Note 14—Financial Instruments. | Environmental Costs—The Company's operations include the storage of gasoline in underground storage tanks at certain company-owned stores. Liabilities incurred in connection with the remediation of accidental fuel discharges are recorded when it is probable that obligations have been incurred and the amounts can be reasonably estimated. | |||
Income Taxes | ||||
Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates is recognized in the statement of operations in the period that includes the enactment date. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not 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 change to reflect tax on these amounts. See Note 9—Taxes on Income. | Operating Leases— | |||
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” in our consolidated statements of operations and for the years ended December 31, 2012, 2011 and 2010 were $158.0 million, $145.8 million and $133.8 million, respectively. | Contingent Rent—The Company recognizes contingent rent expense associated with certain airport concession agreements monthly as incurred when the Company's achievement of the annual targeted qualifying revenue is probable. | |||
Goodwill | ||||
Goodwill is not amortized but is subject to periodic testing for impairment in accordance with Financial Accounting Standards Board, or "FASB," Accounting Standards Codification, or "ASC," Topic 350, “Intangibles—Goodwill and Other,” or “ASC 350,” at the reporting unit level which is one level below our operating segments. The assessment of goodwill impairment is conducted by estimating and comparing the fair value of our reporting units, as defined in ASC 350, to their carrying value as of that date. The fair value is estimated using an income approach whereby the fair value of the reporting unit is based on the future cash flows that each reporting unit's assets can be expected to generate. Future cash flows are based on forward-looking information regarding market share and costs for each reporting unit and are discounted using an appropriate discount rate. Future discounted cash flows can be affected by changes in industry or market conditions or the rate and extent to which anticipated synergies or cost savings are realized with newly acquired entities. The test for impairment is conducted annually each October 1st, and more frequently if events occur or circumstances change that indicate that the fair value of a reporting unit may be below its carrying amount. | Scheduled Rent Increases—The Company recognizes scheduled rent increases on a straight-line basis over the remaining lease term. | |||
Intangible and Long-lived Assets | ||||
Intangible assets include concession agreements, technology, customer relationships, trademarks and 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 two to fifteen 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 in accordance with FASB ASC Topic 360, “Property, Plant, and Equipment,” or “ASC 360.” 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. Intangible assets determined to have indefinite useful lives are not amortized but are tested for impairment annually each October 1st and more frequently if events occur or circumstances change that indicate an asset may be impaired. | Income Taxes—The Company has provided for income taxes on its separate taxable income or loss and other tax attributes. Deferred income taxes are provided for the temporary differences between the financial reporting basis and the tax basis of the Company's assets and liabilities. A valuation allowance is recorded for deferred income tax assets when management determines it is more likely than not that such assets will not be realized. The Company has established a valuation allowance related to DTG Canada and a portion of the Company's net operating losses for state tax purposes. The Company evaluates its tax policies quarterly to identify uncertain tax positions. | |||
Stock‑Based Compensation | ||||
We measure 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 to be recognized over the period during which the employee is required to provide service in exchange for the award. We have 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 life, dividend yield and risk-free interest rate. See Note 7-Stock‑Based Compensation. | Earnings Per Share—Basic earnings per share ("EPS") is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted EPS is based on the combined weighted average number of common shares and dilutive potential common shares outstanding which include, where appropriate, the assumed exercise of options. In computing diluted EPS, the Company utilizes the treasury stock method. | |||
We are using equity accounting for restricted stock unit and performance stock unit 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 a performance condition. For performance stock units, we re-assess the probability of achieving the applicable performance condition each reporting period and adjust the recognition of expense accordingly. The performance condition is not considered in determining the grant date fair value. | ||||
Franchise Revenues and Transactions | Stock-Based Compensation—The Company uses the fair value-based method of accounting for stock-based compensation. All performance share, restricted stock and stock option awards are accounted for using the fair value-based method for the 2011, 2010 and 2009 periods. The fair value of these common shares is determined based on the closing market price of the Company's common shares at the specific date on which the shares were granted. In 2011 and 2010, the Company did not issue any stock options. In 2009, the Company issued approximately 1,120,000 stock options at a weighted average grant-date fair value per share of $4.44. | |||
“Franchise revenues” includes franchise fees for use of our brands and services. Generally franchise fees from franchised locations are based on a percentage of net sales of the franchised business and are recognized as earned and when collectability is reasonably assured. | ||||
Initial franchise fees are recorded as deferred income when received and are recognized as revenue when all material services and conditions related to the franchise fee have been substantially performed. | New Accounting Standards— | |||
Renewal franchise fees are recognized as revenue when the license agreements are effective and collectability is reasonably assured. | ||||
Other (income) expense, net includes the gains or losses from the sales of our operations or assets to new and existing franchisees. Such gains or losses are included in operating income because they are expected to be a recurring part of our business. | In January 2010, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") ASU 2010-06, "Fair Value Measurements and Disclosures (ASC Topic 820): Improving Disclosures about Fair Value Measurements" which amends Accounting Standards Codification ("ASC") Subtopic 820, "Fair Value Measurements and Disclosures" ("ASU 2010-06") to add new requirements for disclosures about transfers into and out of Levels 1 and 2 and separate disclosures about purchases, sales, issuances, and settlements relating to Level 3 measurements. ASU 2010-06 also clarifies existing fair value disclosures about the level of disaggregation and about inputs and valuation techniques used to measure fair value. The Company adopted the provisions of ASU 2010-06 regarding disclosures about transfers into and out of Levels 1 and 2 as required on January 1, 2010 and adopted the remaining provisions of ASU 2010-06 regarding separate disclosures about purchases, sales, issuances, and settlements relating to Level 3 measurements as required on January 1, 2011. The adoption of this latest provision had no impact on the Company's financial statements as the Company has no Level 3 measurements. | |||
Recently Issued Accounting Pronouncements | ||||
In December 2011, the FASB issued Accounting Standards Update, or "ASU," No. 2011-11, "Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities," or "ASU 2011-11" to amend the requirement for an entity to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. An entity should provide the disclosures required by those amendments retrospectively for all comparative periods presented. ASU 2011-11 is effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. We plan to adopt ASU 2011-11 on January 1, 2013, as required, but do not believe this guidance will have a significant impact on our consolidated financial statements or financial statement disclosures. | In May 2011, the FASB issued ASU 2011-04, "Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRS" ("ASU 2011-04"), which amends U.S. GAAP to converge U.S. GAAP and International Financial Reporting Standards ("IFRS") by changing the wording used to describe many of the requirements in U.S. GAAP for measuring fair value and for disclosing information about fair value measurements. ASU 2011-04 is effective for interim and annual periods beginning after December 15, 2011; early adoption is not permitted. The Company adopted ASU 2011-04 on January 1, 2012, as required, but does not believe this guidance will have a significant impact on the Company's consolidated financial statements. | |||
In July 2012, the FASB issued ASU No. 2012-02, "Intangibles—Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment," or "ASU 2012-02" which states that an entity has the option first to assess qualitative factors to determine whether the existence of events and circumstances indicates that it is more likely than not that an indefinite-lived intangible asset is impaired. If, after assessing the totality of events and circumstances, an entity concludes that it is not more likely than not that the indefinite-lived intangible asset is impaired, then the entity is not required to take further action. However, if an entity concludes otherwise, then it is required to determine the fair value of the indefinite-lived intangible asset and perform the quantitative impairment test by comparing the fair value with the carrying amount. This provision is effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. This accounting guidance is not expected to have a material impact on our consolidated financial statements or financial statement disclosures. | ||||
In February 2013, the FASB issued ASU No. 2013-02, "Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income," or "ASU 2013-02" which requires disclosure of significant amounts reclassified out of accumulated other comprehensive income by component and their corresponding effect on the respective line items of net income. This guidance is effective for reporting periods beginning after December 15, 2012 and is not expected to have a material impact on our consolidated financial statements or financial statement disclosures. | In June 2011, the FASB issued ASU 2011-05, "Comprehensive Income—Presentation of Comprehensive Income" ("ASU 2011-05"). ASU 2011-05 eliminates the option to present the components of other comprehensive income as part of the statement of stockholders' equity. It requires an entity to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. In December 2011, the FASB issued ASU 2011-12, "Comprehensive Income—Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in ASU 2011-05," to defer the effective date of the specific requirement to present items that are reclassified out of accumulated other comprehensive income to net income alongside their respective components of net income and other comprehensive income. All other provisions of this update, which are to be applied retrospectively, are effective for fiscal years, and interim periods within those years, beginning after December 15, 2011. The Company adopted ASU 2011-05 and ASU 2011-12 on January 1, 2012, as required. | |||
In December 2011, the FASB issued ASU 2011-11, "Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities" ("ASU 2011-11") to amend the requirement for an entity to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. An entity should provide the disclosures required by those amendments retrospectively for all comparative periods presented. ASU 2011-11 is effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. The Company plans to adopt ASU 2011-11 on January 1, 2013, as required, but does not believe this guidance will have a significant impact on the Company's consolidated financial statements. | ||||
CASH_AND_INVESTMENTS_DOLLAR_TH
CASH AND INVESTMENTS - DOLLAR THRIFTY | 6 Months Ended | 9 Months Ended |
Jun. 30, 2013 | Sep. 30, 2012 | |
Dollar Thrifty Automotive Group Inc | ||
CASH AND INVESTMENTS | Cash and Cash Equivalents and Restricted Cash and Cash Equivalents | 2. CASH AND INVESTMENTS |
We consider all highly liquid debt instruments purchased with an original maturity of three months or less to be cash equivalents. | ||
Restricted cash and cash equivalents includes cash and cash equivalents that are not readily available for our normal disbursements. Restricted cash and cash equivalents are restricted for the purchase of revenue earning vehicles and other specified uses under our Fleet Debt facilities, for our Like-Kind Exchange Program, or "LKE Program," and to satisfy certain of our self-insurance regulatory reserve requirements. As of June 30, 2013 and December 31, 2012, the portion of total restricted cash and cash equivalents that was associated with our Fleet Debt facilities and LKE Program was $351.6 million and $494.0 million, respectively. The decrease in restricted cash and cash equivalents associated with our fleet of $142.4 million from December 31, 2012 to June 30, 2013 was primarily related to the timing of purchases and sales of revenue earning vehicles. | Cash and Cash Equivalents—Cash and cash equivalents include cash on hand and on deposit, including highly liquid investments with initial maturities of three months or less. Book overdrafts represent outstanding checks not yet presented to the bank and are included in accounts payable to reflect the Company's outstanding obligations. At September 30, 2012 and December 31, 2011, there was $13.3 million and $19.0 million, respectively, in book overdrafts included in accounts payable. These amounts do not represent bank overdrafts, which would constitute checks presented in excess of cash on hand, and would be effectively a loan to the Company. | |
Restricted Cash and Investments—Restricted cash and investments are restricted for the acquisition of vehicles and other specified uses under the rental car asset-backed note indenture and other agreements. A portion of these funds is restricted due to the like-kind exchange tax program for deferred tax gains on eligible vehicle remarketing. As permitted by the indenture, these funds are primarily held in highly rated money market funds with investments primarily in government and corporate obligations. Restricted cash and investments are excluded from cash and cash equivalents. | ||
SHAREBASED_PAYMENT_PLANS_DOLLA
SHARE-BASED PAYMENT PLANS - DOLLAR THRIFTY | 6 Months Ended | 12 Months Ended | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | |||||||||||||||||||||||||||||||||||||||||
Dollar Thrifty Automotive Group Inc | |||||||||||||||||||||||||||||||||||||||||||
SHARE-BASED PAYMENT PLANS | Stock-Based Compensation | Stock-Based Compensation | 3. SHARE-BASED PAYMENT PLANS | ||||||||||||||||||||||||||||||||||||||||
In February 2013, Hertz Holdings granted 5,247 Restricted Stock Units, or "RSUs," and 1,707,458 Performance Stock Units, or "PSUs," to certain executives and employees at a grant date fair value of $19.95, under the Hertz Global Holdings, Inc. 2008 Omnibus Incentive Plan, or the "Omnibus Plan." Of the total PSUs awarded 1,136,724 PSUs have a performance condition under which the number of units that will ultimately be awarded will vary from 0% to 150% of the original grant, based on 2013 and combined 2013-2014 Corporate EBITDA results. "EBITDA" means consolidated net income before net interest expense, consolidated income taxes and consolidated depreciation (which includes revenue earning equipment lease charges) and amortization and "Corporate EBITDA," represents EBITDA as adjusted for car rental fleet interest, car rental fleet depreciation and certain other items, as provided in the applicable award agreements. These PSU awards vest evenly over a three year vesting period. Of the total PSUs awarded, 490,632 PSUs have a performance condition under which the number of units that will ultimately be awarded will be 0% to 100% of the original grant. Satisfaction of the performance condition under this grant is contingent upon final 2013 Corporate EBITDA Margin exceeding a minimum level. "Corporate EBITDA Margin" means Corporate EBITDA as a percentage of Consolidated Revenue. These PSU awards vest evenly over a three year vesting period. Of the total PSUs awarded, 83,567 PSUs have a performance condition under which the number of units that will ultimately be awarded will be 0% to 100% of the original grant. Satisfaction of the performance condition under this grant is contingent upon final 2013 Corporate EBITDA Margin exceeding a minimum level. These PSU awards vest evenly over a two year vesting period. The 5,247 RSUs awarded have a two year cliff vesting period. | Plans | ||||||||||||||||||||||||||||||||||||||||||
In May 2013, Hertz Holdings granted 166,576 RSUs at a fair value of $23.80. Of the total RSUs awarded, 162,584 vest 33 1/3% annually over three years, and 3,992 RSUs vest after two years. | On February 28, 2008, the Board of Directors of Hertz and Hertz Holdings jointly adopted the Hertz Global Holdings, Inc. 2008 Omnibus Incentive Plan, or the “Omnibus Plan,” which was approved by the stockholders of Hertz Holdings at the annual meeting of stockholders held on May 15, 2008 and amended and restated on May 27, 2010. A maximum of 32.7 million shares are reserved for issuance under the Omnibus Plan. The Omnibus 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 stock, restricted stock units and deferred stock units to key executives, employees and non-management directors. We also granted awards under the Hertz Global Holdings, Inc. Stock Incentive Plan, or the “Stock Incentive Plan,” and the Hertz Global Holdings, Inc. Director Stock Incentive Plan, or the “Director Plan”, or collectively the “Prior Plans.” | Long-Term Incentive Plan | |||||||||||||||||||||||||||||||||||||||||
The non-cash stock-based compensation expense associated with the Prior Plans (as defined below) and the Omnibus Plan is pushed down from Hertz Holdings and recorded on the books at the Hertz level. | The Omnibus Plan provides that no further awards will be granted pursuant to the Prior Plans. However, awards that had been previously granted pursuant to the Prior Plans will continue to be subject to and governed by the terms of the Prior Plans. As of December 31, 2012, there were 8.0 million shares of Hertz Holdings' common stock underlying awards outstanding under the Prior Plans. In addition, as of December 31, 2012, there were 9.4 million shares of Hertz Holdings' common stock underlying awards outstanding under the Omnibus Plan. | ||||||||||||||||||||||||||||||||||||||||||
A summary of the total compensation expense and associated income tax benefits recognized under our Hertz Global Holdings, Inc. Stock Incentive Plan and Hertz Global Holdings, Inc. Director Stock Incentive Plan, or the "Prior Plans," and the Omnibus Plan, including the cost of stock options, RSUs, and PSUs, is as follows (in millions of dollars): | In addition to the 17.4 million shares underlying outstanding awards as of December 31, 2012, we had 16.9 million shares of Hertz Holdings' common stock available for issuance under the Omnibus Plan. The shares of common stock to be delivered under the Omnibus Plan may consist, in whole or in part, of common stock held in treasury or authorized but unissued shares of common stock, not reserved for any other purpose. | At September 30, 2012, the Company's common stock authorized for issuance under the long-term incentive plan ("LTIP") for employees and non-employee directors was 2,726,312 shares. The Company has 1,168,546 shares available for future LTIP awards at September 30, 2012 after reserving for the maximum potential shares that could be awarded under existing LTIP grants. The Company issues new shares from remaining authorized common stock to satisfy LTIP awards. | |||||||||||||||||||||||||||||||||||||||||
Shares subject to any award granted under the Omnibus Plan that for any reason are canceled, terminated, forfeited, settled in cash or otherwise settled without the issuance of common stock after the effective date of the Omnibus Plan will generally be available for future grants under the Omnibus Plan. | |||||||||||||||||||||||||||||||||||||||||||
In March 2012, Hertz Holdings granted 543,880 Restricted Stock Units, or "RSUs," to certain executives and employees at fair values ranging from $13.65 to $14.47, 747,423 Performance Stock Units, or "PSUs," at a fair value of $13.65, and 1,098,591 PSUs (referred to as Price Vesting Units, or "PVUs") at fair values ranging from $10.13 to $11.26 under the Omnibus Plan. The PSUs have a performance condition under which the number of units that will ultimately be awarded will vary from 0% to 150% of the original grant, based on 2012 and 2013 Hertz Holdings' Corporate EBITDA results. "EBITDA" means consolidated net income before net interest expense, consolidated income taxes and consolidated depreciation (which includes revenue earning equipment lease charges) and amortization. "Corporate EBITDA," represents EBITDA as adjusted for car rental fleet interest, car rental fleet depreciation and certain other items, as provided in the applicable award agreements. Of the PVUs granted, one half will fully vest after three years if Hertz Holdings' stock price appreciates 15% over the starting price established on March 2, 2012, and one half will fully vest after four years if Hertz Holdings' stock price appreciates 25% over the starting price established on March 2, 2012. The starting price for the PVU awards is the average of the 20 trading day closing stock price ending March 2, 2012. Partial attainment of Hertz Holdings' stock appreciation targets will result in partial vesting. The achievement of the market condition for the PVUs is determined based on the average closing stock price for the 20 trading day period ending March 6, 2015 and 2016, respectively. In May 2012, Hertz Holdings granted 146,301 RSUs at a fair value of $15.48, in August 2012, Hertz Holdings granted 59,480 RSUs at a fair value of $12.12, and in November 2012, we granted 24,713 RSUs at a fair value of $13.15. In November 2012, we granted 35,492 non-qualified options with a strike price of $0.17 in exchange for 6,000 Dollar Thrifty options with a strike price of $0.97. | Compensation cost for non-qualified option rights, performance shares and restricted stock awards is recognized based on the fair value of the awards granted at the grant-date and is amortized to compensation expense on a straight-line basis over the requisite service periods of the stock awards, which are generally the vesting periods. The Company recognized compensation costs of $1.9 million and $5.9 million during the three and nine months ended September 30, 2012, respectively, and $1.0 million and $3.1 million during the three and nine months ended September 30, 2011, respectively, for such awards. The total income tax benefit recognized in the statements of comprehensive income for share-based compensation payments was $0.6 million and $2.2 million for the three and nine months ended September 30, 2012, respectively, and $0.3 million and $1.2 million for the three and nine months ended September 30, 2011, respectively. | ||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | The non-cash stock-based compensation expense associated with the Prior Plans (as defined below) and the Omnibus Plan is pushed down from Hertz Holdings and recorded on the books at the Hertz level. | |||||||||||||||||||||||||||||||||||||||||
June 30, | June 30, | A summary of the total compensation expense and associated income tax benefits recognized under the Prior Plans and the Omnibus Plan, including the cost of stock options, RSUs, and PSUs, is as follows (in millions of dollars): | Option Rights Plan—Under the LTIP, the Human Resources and Compensation Committee may grant non-qualified option rights to key employees and non-employee directors. The maximum number of shares for which option rights may be granted under the LTIP to any participant during any calendar year is 285,000. No awards were granted in 2012 or 2011. The grant-date fair value of options vested during both the nine months ended September 30, 2012 and 2011 was $1.6 million. No options vested during the three months ended September 30, 2012 or 2011. Expense is recognized over the service period which is the vesting period. No unrecognized expense for the options is remaining at September 30, 2012. | ||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||||||
Compensation expense | $ | 11.7 | $ | 7.5 | $ | 19.7 | $ | 15 | The following table sets forth the non-qualified option rights activity under the LTIP for the nine months ended September 30, 2012: | ||||||||||||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||||||||||||||||||||
Income tax benefit | (4.5 | ) | (2.9 | ) | (7.6 | ) | (5.8 | ) | 2012 | 2011 | 2010 | ||||||||||||||||||||||||||||||||
Total | $ | 7.2 | $ | 4.6 | $ | 12.1 | $ | 9.2 | Compensation expense | $ | 30.3 | $ | 31 | $ | 36.6 | Number of | Weighted- | Weighted- | Aggregate | ||||||||||||||||||||||||
Shares | Average | Average | Intrinsic | ||||||||||||||||||||||||||||||||||||||||
As of June 30, 2013, there was approximately $55.4 million of total unrecognized compensation cost related to non-vested stock options, RSUs and PSUs granted by Hertz Holdings under the Prior Plans and the Omnibus Plan. The total unrecognized compensation cost is expected to be recognized over the remaining 1.7 years, on a weighted average basis, of the requisite service period that began on the grant dates. | Income tax benefit | (11.7 | ) | (12.0 | ) | (14.2 | ) | Exercise | Remaining | Value | |||||||||||||||||||||||||||||||||
Total | $ | 18.6 | $ | 19 | $ | 22.4 | Price | Contractual | |||||||||||||||||||||||||||||||||||
Term | |||||||||||||||||||||||||||||||||||||||||||
(In Thousands) | (In Thousands) | ||||||||||||||||||||||||||||||||||||||||||
As of December 31, 2012, there was approximately $38.0 million of total unrecognized compensation cost related to non-vested stock options, RSUs and PSUs granted by Hertz Holdings under the Prior Plans and the Omnibus Plan. The total unrecognized compensation cost is expected to be recognized over the remaining 1.4 years, on a weighted average basis, of the requisite service period that began on the grant dates. | Outstanding at January 1, 2012 | 1,575 | $ | 5.11 | 6.89 | $ | 102,579 | ||||||||||||||||||||||||||||||||||||
Granted | — | — | |||||||||||||||||||||||||||||||||||||||||
Stock Options and Stock Appreciation Rights | Exercised | (297 | ) | 5.7 | |||||||||||||||||||||||||||||||||||||||
All stock options and stock appreciation rights granted under the Omnibus Plan will have a per-share exercise price of not less than the fair market value of one share of Hertz Holdings common stock on the grant date. Stock options and stock appreciation rights 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 of our Board of Directors. No stock options or stock appreciation rights will be exercisable after ten years from the grant date. | Canceled (Forfeited/Expired) | — | — | ||||||||||||||||||||||||||||||||||||||||
We have accounted for our employee stock‑based compensation awards in accordance with ASC 718, “Compensation-Stock Compensation.” The non-cash stock based compensation expense associated with the Stock Incentive Plan is pushed down from Hertz Holdings and recorded on the books at the Hertz level. The options are being accounted for as equity‑classified awards. We will recognize compensation cost on a straight-line basis over the vesting period. The value of each option award is estimated on the grant date using a Black‑Scholes option valuation model that incorporates the assumptions noted in the following table. Because the stock of Hertz Holdings became publicly traded in November 2006 and had a short trading history, it was not practicable for us to estimate the expected volatility of Hertz Holdings' share price, or a peer company share price, because there was insufficient historical information about past volatility prior to 2012. Therefore, prior to 2012 we used the calculated value method, substituting the historical volatility of an appropriate industry sector index for the expected volatility of Hertz Holdings' common stock price as an assumption in the valuation model. We selected the Dow Jones Specialized Consumer Services sub-sector within the consumer services industry, and we used the U.S. large capitalization component, which includes the top 70% of the index universe (by market value). | |||||||||||||||||||||||||||||||||||||||||||
The calculation of the historical volatility of the index was made using the daily historical closing values of the index for the preceding 6.25 years, because that is the expected term of the options using the simplified approach. | Outstanding at September 30, 2012 | 1,278 | $ | 4.97 | 6.35 | $ | 104,695 | ||||||||||||||||||||||||||||||||||||
For 2012, we have determined that there was sufficient historical information available to estimate the expected volatility of our share price. Therefore, for 2012 we calculated volatility for Hertz Holdings' stock price based on a weighted average combining implied volatility and the average of our peer’s most recent 5.79-year volatility and mean reversion volatility. | |||||||||||||||||||||||||||||||||||||||||||
The risk-free interest rate is the implied zero-coupon yield for U.S. Treasury securities having a maturity approximately equal to the expected term, as of the grant dates. The assumed dividend yield is zero. | Fully vested and exercisable options at: September 30, 2012 | 1,278 | $ | 4.97 | 6.35 | $ | 104,695 | ||||||||||||||||||||||||||||||||||||
The total intrinsic value of options exercised during the three and nine months ended September 30, 2012 was $15.7 million and $23.0 million, respectively. The total intrinsic value of options exercised during the three and nine months ended September 30, 2011 was $0.1 million and $6.3 million, respectively. Total cash received by the Company for non-qualified option rights exercised during the three and nine months ended September 30, 2012 totaled $0.9 million and $1.7 million, respectively. Total cash received by the Company for non-qualified option rights exercised during the three and nine months ended September 30, 2011 totaled less than $0.1 million and $2.9 million, respectively. | |||||||||||||||||||||||||||||||||||||||||||
Assumption | 2012 Grants | 2011 Grants | 2010 Grants | ||||||||||||||||||||||||||||||||||||||||
Expected volatility | 81.5 | % | 36.7 | % | 36.1 | % | Performance Shares—Performance share awards, which may take the form of performance shares or performance units, are granted to Company officers and certain key employees. The maximum amount of performance share awards that may be granted under the LTIP during any year to any participant is 160,000 common shares. Compensation expense related to the performance shares is recognized over the vesting period. | ||||||||||||||||||||||||||||||||||||
Expected dividend yield | — | % | — | % | — | % | |||||||||||||||||||||||||||||||||||||
Expected term (years) | 3 | 6.25 | 6.25 | In February 2012, the Company granted 29,135 performance units related to the 2011 incentive compensation plan with a grant-date fair value of $76.17 per share. These performance units, which will settle in Company shares, will vest over the requisite service period with 25% vesting on December 31, 2012 and the remaining 75% vesting on December 31, 2013. The grant-date fair value for this award was based on the closing market price of the Company's common shares on the date of grant. | |||||||||||||||||||||||||||||||||||||||
Risk-free interest rate | 0.4 | % | 2.56 | % | 1.62%-2.96% | In March 2011, the 2008 grant of performance shares earned from January 1, 2008 through December 31, 2010 totaling 73,000 shares, net of forfeitures, vested at 200% of the target award (total of approximately 146,000 shares) with a total intrinsic value to the recipients of approximately $3.5 million. The Company withheld approximately 52,000 of these shares for the payment of taxes owed by the recipients and designated the shares withheld as treasury shares. | |||||||||||||||||||||||||||||||||||||
Weighted‑average grant date fair value | $ | 14.62 | $ | 5.93 | $ | 4 | The following table presents the status of the Company's nonvested performance shares as of September 30, 2012 and any changes during the nine months ended September 30, 2012: | ||||||||||||||||||||||||||||||||||||
A summary of option activity under the Stock Incentive Plan and the Omnibus Plan as of December 31, 2012 is presented below. | |||||||||||||||||||||||||||||||||||||||||||
Nonvested Shares | Shares | Weighted-Average | |||||||||||||||||||||||||||||||||||||||||
Grant-Date | |||||||||||||||||||||||||||||||||||||||||||
Options | Shares | Weighted‑ | Weighted‑ | Aggregate Intrinsic | Fair Value | ||||||||||||||||||||||||||||||||||||||
Average | Average | Value (In thousands | (In Thousands) | ||||||||||||||||||||||||||||||||||||||||
Exercise | Remaining | of dollars) | Nonvested at January 1, 2012 | 262 | $ | 59.11 | |||||||||||||||||||||||||||||||||||||
Price | Contractual | Granted | 29 | 76.17 | |||||||||||||||||||||||||||||||||||||||
Term (years) | Vested | (4 | ) | 52.44 | |||||||||||||||||||||||||||||||||||||||
Outstanding at January 1, 2012 | 15,142,061 | $ | 10.6 | 6.3 | $ | 41,110 | Forfeited | (7 | ) | 59.79 | |||||||||||||||||||||||||||||||||
Granted | 35,492 | 0.17 | Nonvested at September 30, 2012 | 280 | $ | 60.94 | |||||||||||||||||||||||||||||||||||||
Exercised | (1,740,447 | ) | 5.75 | ||||||||||||||||||||||||||||||||||||||||
At September 30, 2012, the total compensation cost related to nonvested performance share awards not yet recognized is estimated at approximately $8.0 million, based on the Company's expectation that it will meet or exceed the targets specified in the performance share agreement. This estimated compensation cost is expected to be recognized over the weighted-average period of 1.4 years. The total intrinsic value of vested and issued performance shares during the nine months ended September 30, 2012 and 2011 was $0.3 million and $7.6 million, respectively. As of September 30, 2012, the intrinsic value of the nonvested performance share awards was $24.4 million. | |||||||||||||||||||||||||||||||||||||||||||
Forfeited or Expired | (248,431 | ) | 14.66 | ||||||||||||||||||||||||||||||||||||||||
Restricted Stock Units—Under the LTIP, the Company may grant restricted stock units to key employees and non-employee directors. The grant-date fair value of the award is based on the closing market price of the Company's common shares on the date of grant. | |||||||||||||||||||||||||||||||||||||||||||
Outstanding at December 31, 2012 | 13,188,675 | 11.13 | 5.4 | $ | 74,681 | ||||||||||||||||||||||||||||||||||||||
In January 2012, non-employee directors were granted 6,815 shares with a grant-date fair value of $73.42 per share that fully vest on December 31, 2012. The total intrinsic value of vested and issued restricted stock units during the nine months ended September 30, 2012 and 2011 was $2.7 million and $1.1 million, respectively. At September 30, 2012, the total compensation cost related to nonvested restricted stock unit awards not yet recognized is approximately $0.1 million, which is expected to be recognized on a straight-line basis over the vesting period of the restricted stock units. | |||||||||||||||||||||||||||||||||||||||||||
Exercisable at December 31, 2012 | 10,321,945 | 10.83 | 4.7 | $ | 63,086 | ||||||||||||||||||||||||||||||||||||||
The following table presents the status of the Company's nonvested restricted stock units as of September 30, 2012 and changes during the nine months ended September 30, 2012: | |||||||||||||||||||||||||||||||||||||||||||
A summary of non-vested options as of December 31, 2012, and changes during the year, is presented below. | |||||||||||||||||||||||||||||||||||||||||||
Nonvested Shares | Shares | Weighted-Average | |||||||||||||||||||||||||||||||||||||||||
Non-vested | Weighted‑ | Weighted‑ | Grant-Date | ||||||||||||||||||||||||||||||||||||||||
Shares | Average | Average Grant- | Fair Value | ||||||||||||||||||||||||||||||||||||||||
Exercise Price | Date Fair | (In Thousands) | |||||||||||||||||||||||||||||||||||||||||
Value | Nonvested at January 1, 2012 | 34 | $ | 5.41 | |||||||||||||||||||||||||||||||||||||||
Non-vested as of January 1, 2012 | 4,915,825 | $ | 12.04 | $ | 4.86 | Granted | 7 | 73.42 | |||||||||||||||||||||||||||||||||||
Vested | (34 | ) | 5.41 | ||||||||||||||||||||||||||||||||||||||||
Granted | 35,492 | 0.17 | 0.17 | Forfeited | — | — | |||||||||||||||||||||||||||||||||||||
Vested | (1,959,032 | ) | 11.56 | 4.59 | Nonvested at September 30, 2012 | 7 | $ | 73.42 | |||||||||||||||||||||||||||||||||||
Forfeited | (125,555 | ) | 11.91 | 4.84 | |||||||||||||||||||||||||||||||||||||||
Non-vested as of December 31, 2012 | 2,866,730 | $ | 12.23 | $ | 4.98 | ||||||||||||||||||||||||||||||||||||||
Additional information pertaining to option activity under the plans is as follows (in millions of dollars): | |||||||||||||||||||||||||||||||||||||||||||
Years ended | |||||||||||||||||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||||||||||||||||
2012 | 2011 | 2010 | |||||||||||||||||||||||||||||||||||||||||
Aggregate intrinsic value of stock options exercised | $ | 15.1 | $ | 15 | $ | 8.1 | |||||||||||||||||||||||||||||||||||||
Cash received from the exercise of stock options | 11.2 | 13.1 | 7.9 | ||||||||||||||||||||||||||||||||||||||||
Fair value of options that vested | 9 | 17.4 | 21.6 | ||||||||||||||||||||||||||||||||||||||||
Tax benefit realized on exercise of stock options | 0.9 | 0.5 | 0.3 | ||||||||||||||||||||||||||||||||||||||||
Performance Stock, Performance Stock Units, Restricted Stock and Restricted Stock Units | |||||||||||||||||||||||||||||||||||||||||||
Performance stock, PSUs and performance units granted under the Omnibus Plan will vest based on the achievement of pre-determined performance goals over performance periods determined by the Compensation, Nominating and Governance Committee of the Board of Directors of Hertz Holdings. Each of the units granted under the Omnibus Plan represent the right to receive one share of Hertz Holdings' 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 performance stock, performance stock units and performance units will vest to the extent performance goals are achieved at the end of the performance period. Restricted Stock and 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, Nominating and Governance Committee of the Board of Directors of Hertz Holdings. | |||||||||||||||||||||||||||||||||||||||||||
A summary of RSU and PSU activity under the Omnibus Plan as of December 31, 2012 is presented below. | |||||||||||||||||||||||||||||||||||||||||||
Shares | Weighted‑ | Aggregate Intrinsic | |||||||||||||||||||||||||||||||||||||||||
Average | Value (In thousands | ||||||||||||||||||||||||||||||||||||||||||
Fair Value | of dollars) | ||||||||||||||||||||||||||||||||||||||||||
Outstanding at January 1, 2012 | 4,327,461 | $ | 6.46 | $ | 50,718 | ||||||||||||||||||||||||||||||||||||||
Granted | 869,894 | 13.78 | — | ||||||||||||||||||||||||||||||||||||||||
Vested | (3,198,219 | ) | 4.58 | — | |||||||||||||||||||||||||||||||||||||||
Forfeited or Expired | (126,502 | ) | 13.19 | — | |||||||||||||||||||||||||||||||||||||||
Outstanding at December 31, 2012 | 1,872,634 | $ | 12.62 | $ | 30,468 | ||||||||||||||||||||||||||||||||||||||
Additional information pertaining to RSU and PSU activity is as follows: | |||||||||||||||||||||||||||||||||||||||||||
Years ended December 31, | |||||||||||||||||||||||||||||||||||||||||||
2012 | 2011 | 2010 | |||||||||||||||||||||||||||||||||||||||||
Total fair value of awards that vested ($ millions) | $ | 14.6 | $ | 9.6 | $ | 8.2 | |||||||||||||||||||||||||||||||||||||
Weighted average grant date fair value of awards | $ | 13.78 | $ | 14.78 | $ | 10.1 | |||||||||||||||||||||||||||||||||||||
Compensation expense for RSUs and PSUs is based on the grant date fair value, and is recognized ratably over the vesting period. For grants in 2010, 2011 and 2012, the vesting period is three years (for grants in 2010 and 2011, 25% in the first year, 25% in the second year and 50% in the third year and for grants in 2012, 33 1/3% per year). In addition to the service vesting condition, the PSUs had an additional vesting condition which called for the number of units that will be awarded being based on achievement of a certain level of Corporate EBITDA over the applicable measurement period. | |||||||||||||||||||||||||||||||||||||||||||
In March 2012, Hertz Holdings granted 1,846,014 PSUs that had a performance vesting condition under which the number of units that will ultimately be awarded will vary from 0% to 150% of the original grant, based on the sum of 2012 and 2013 Corporate EBITDA results, in addition to a service vesting condition. In March 2011 Hertz Holdings' granted 499,515 PSUs that had a performance vesting condition under which the number of units that will ultimately be awarded will vary from 0% to 150% of the original grant, based on the sum of 2011 and 2012 Corporate EBITDA results, in addition to a service vesting condition. An additional 193,798 PSUs granted in March 2011 contained a market condition whereby the 20 trading day average trailing Hertz Holdings' stock price must equal or exceed a certain price target at any time during the five year performance period, in addition to a service vesting condition. A summary of the PSU activity for this grant is presented below. | |||||||||||||||||||||||||||||||||||||||||||
Shares | Weighted‑ | Aggregate Intrinsic | |||||||||||||||||||||||||||||||||||||||||
Average | Value (In thousands | ||||||||||||||||||||||||||||||||||||||||||
Fair Value | of dollars) | ||||||||||||||||||||||||||||||||||||||||||
Outstanding at January 1, 2012 | 677,971 | $ | 13.34 | $ | 7,946 | ||||||||||||||||||||||||||||||||||||||
Granted | 1,846,014 | 11.89 | — | ||||||||||||||||||||||||||||||||||||||||
Vested | (124,874 | ) | 14.6 | — | |||||||||||||||||||||||||||||||||||||||
Forfeited or Expired | (100,438 | ) | 11.87 | — | |||||||||||||||||||||||||||||||||||||||
Outstanding at December 31, 2012 | 2,298,673 | $ | 12.18 | $ | 37,399 | ||||||||||||||||||||||||||||||||||||||
Employee Stock Purchase Plan | |||||||||||||||||||||||||||||||||||||||||||
On February 28, 2008, upon recommendation of the compensation committee of the Board of Directors, or “Committee,” of Hertz Holdings, Hertz Holdings' Board of Directors adopted the Hertz Global Holdings, Inc. Employee Stock Purchase Plan, or the “ESPP,” and the plan was approved by the stockholders of Hertz Holdings on May 15, 2008. The ESPP is intended to be an “employee stock purchase plan” within the meaning of Section 423 of the Internal Revenue Code. | |||||||||||||||||||||||||||||||||||||||||||
The maximum number of shares that may be purchased under the ESPP is 3,000,000 shares of Hertz Holdings' common stock, subject to adjustment in the case of any change in Hertz Holdings' shares, including by reason of a stock dividend, stock split, share combination, recapitalization, reorganization, merger, consolidation or change in corporate structure. An eligible employee may elect to participate in the ESPP each quarter (or other period established by the Committee) through a payroll deduction. The maximum and minimum contributions that an eligible employee may make under all of Hertz Holdings' qualified employee stock purchase plans will be determined by the Committee, provided that no employee may be permitted to purchase stock with an aggregate fair market value greater than $25,000 per year. At the end of the offering period, the total amount of each employee's payroll deduction will be used to purchase shares of Hertz Holdings' common stock. The purchase price per share will be not less than 85% of the market price of Hertz Holdings' common stock on the date of purchase; the exact percentage for each offering period will be set in advance by the Committee. | |||||||||||||||||||||||||||||||||||||||||||
For the years ended December 31, 2012, 2011 and 2010, we recognized compensation cost of approximately $0.8 million, $0.7 million and $0.6 million, respectively, for the amount of the discount on the stock purchased by our employees under the ESPP. Approximately 1,800 employees participated in the ESPP as of December 31, 2012. |
VEHICLE_DEPRECIATION_AND_LEASE
VEHICLE DEPRECIATION AND LEASE CHARGES, NET - DOLLAR THRIFTY | 6 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | ||||||||||||||||||||||||||||||||||||||||||
Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | ||||||||||||||||||||||||||||||||||||||||||||
VEHICLE DEPRECIATION AND LEASE CHARGES, NET | Depreciation of Revenue Earning Equipment and Lease Charges | Depreciation of Revenue Earning Equipment and Lease Charges | 4. VEHICLE DEPRECIATION AND LEASE CHARGES, NET | 5. VEHICLE DEPRECIATION AND LEASE CHARGES, NET | |||||||||||||||||||||||||||||||||||||||||
Depreciation of revenue earning equipment and lease charges includes the following (in millions of dollars): | Depreciation of revenue earning equipment and lease charges includes the following (in millions of dollars): | ||||||||||||||||||||||||||||||||||||||||||||
Vehicle depreciation and lease charges include the following (in thousands): | Vehicle depreciation and lease charges include the following: | ||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | Years Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||
June 30, | 2012 | 2011 | 2010 | Three Months Ended | Nine Months Ended | Year Ended December 31, | |||||||||||||||||||||||||||||||||||||||
2013 | 2012 | Depreciation of revenue earning equipment | $ | 2,165.20 | $ | 1,921.80 | $ | 1,747.00 | September 30, | September 30, | 2011 | 2010 | 2009 | ||||||||||||||||||||||||||||||||
Depreciation of revenue earning equipment | $ | 611.8 | $ | 539.5 | 2012 | 2011 | 2012 | 2011 | (In Thousands) | ||||||||||||||||||||||||||||||||||||
Adjustment of depreciation upon disposal of revenue earning equipment | (96.8 | ) | (112.2 | ) | 42.9 | Depreciation of revenue-earning vehicles and other | $ | 94,323 | $ | 80,667 | $ | 230,391 | $ | 247,112 | Depreciation of revenue-earning vehicles and other | $ | 317,844 | $ | 362,284 | $ | 461,178 | ||||||||||||||||||||||||
Adjustment of depreciation upon disposal of revenue earning equipment | 11.3 | (41.2 | ) | Net gains from disposal of revenue-earning vehicles | (5,192 | ) | (17,368 | ) | (42,023 | ) | (43,129 | ) | Net gains from disposal of revenue-earning vehicles | (46,887 | ) | (63,084 | ) | (35,086 | ) | ||||||||||||||||||||||||||
Rents paid for vehicles leased | 79.8 | 96.1 | 78.2 | ||||||||||||||||||||||||||||||||||||||||||
Rents paid for vehicles leased | 18 | 21.5 | $ | 89,131 | $ | 63,299 | $ | 188,368 | $ | 203,983 | $ | 270,957 | $ | 299,200 | $ | 426,092 | |||||||||||||||||||||||||||||
Total | $ | 2,148.20 | $ | 1,905.70 | $ | 1,868.10 | |||||||||||||||||||||||||||||||||||||||
Total | $ | 641.1 | $ | 519.8 | |||||||||||||||||||||||||||||||||||||||||
The adjustment of depreciation upon disposal of revenue earning equipment for the year ended December 31, 2012, 2011 and 2010, included net gains of $83.2 million and $98.9 million and net loss of $32.9 million, respectively, on the disposal of vehicles used in our car rental operations and net gains of $13.5 million and $13.3 million and net loss of $10.0 million, respectively, on the disposal of industrial and construction equipment used in our equipment rental operations. | Average gain on Non-Program Vehicles: | Average gain on Non-Program Vehicles: | |||||||||||||||||||||||||||||||||||||||||||
Depreciation rates are reviewed on a quarterly basis based on management's routine review of present and estimated future market conditions and their effect on residual values at the time of disposal. During the year ended December 31, 2012, depreciation rates being used to compute the provision for depreciation of revenue earning equipment were adjusted on certain vehicles in our car rental operations to reflect changes in the estimated residual values to be realized when revenue earning equipment is sold. These depreciation rate changes resulted in net decreases of $130.6 million and $13.8 million and a net increase of $19.1 million in depreciation expense for the years ended December 31, 2012, 2011 and 2010 respectively. The cumulative effect of the reduction in rates was indicative of the strong residual values experienced in the U.S. for the years ended December 31, 2012 and 2011. In 2012, 2011 and 2010, the depreciation rate changes in certain of our equipment rental operations resulted in an increase of $0.5 million, decrease of $4.4 million and increase of $3.6 million in depreciation expense, respectively. | |||||||||||||||||||||||||||||||||||||||||||||
Six Months Ended | Three Months Ended | Nine Months Ended | Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||
June 30, | September 30, | September 30, | 2011 | 2010 | 2009 | ||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2012 | 2011 | 2012 | 2011 | Number of Non-Program Vehicles sold | 39,398 | 57,100 | 50,099 | ||||||||||||||||||||||||||||||||||||
Depreciation of revenue earning equipment | $ | 1,184.80 | $ | 1,070.90 | Number of Non-Program Vehicles sold | 15,463 | 15,441 | 48,530 | 30,787 | Average gain on vehicles sold (per vehicle) | $ | 1,190 | $ | 1,105 | $ | 700 | |||||||||||||||||||||||||||||
Average gain on vehicles sold (per vehicle) | $ | 336 | $ | 1,125 | $ | 866 | $ | 1,401 | |||||||||||||||||||||||||||||||||||||
Adjustment of depreciation upon disposal of revenue earning equipment | 10 | (80.6 | ) | ||||||||||||||||||||||||||||||||||||||||||
Components of vehicle depreciation per vehicle per month: | |||||||||||||||||||||||||||||||||||||||||||||
Rents paid for vehicles leased | 33.3 | 44.6 | Components of vehicle depreciation per vehicle per month: | ||||||||||||||||||||||||||||||||||||||||||
Total | $ | 1,228.10 | $ | 1,034.90 | Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | 2011 | 2010 | 2009 | |||||||||||||||||||||||||||||||||||||||||
The adjustment of depreciation upon disposal of revenue earning equipment for the three months ended June 30, 2013 and 2012, included net losses of $17.5 million and net gains of $38.3 million, respectively, on the disposal of vehicles used in our car rental operations and gains of $6.2 million and $2.9 million, respectively, on the disposal of industrial and construction equipment used in our equipment rental operations. The adjustment of depreciation upon disposal of revenue earning equipment for the six months ended June 30, 2013 and 2012, included net losses of $20.8 million and net gains of $73.2 million, respectively, on the disposal of vehicles used in our car rental operations and net gains of $10.8 million and $7.4 million, respectively, on the disposal of industrial and construction equipment used in our equipment rental operations. | September 30, | September 30, | Average depreciable fleet (units) | 108,127 | 103,207 | 105,301 | |||||||||||||||||||||||||||||||||||||||
Depreciation rates are reviewed on a quarterly basis based on management's routine review of present and estimated future market conditions and their effect on residual values at the time of disposal. During the six months ended June 30, 2013, depreciation rates being used to compute the provision for depreciation of revenue earning equipment were adjusted on certain vehicles in our car rental operations to reflect changes in the estimated residual values to be realized when revenue earning equipment is sold. These depreciation rate changes resulted in net decreases of $14.8 million and $15.5 million in depreciation expense for the three-month and six-month periods ended June 30, 2013, respectively. Prospective changes include the impact of car sales channel diversification and acceleration of our retail sales expansion. During the three-month and six-month periods ended June 30, 2013, the depreciation rate changes in certain of our equipment rental operations resulted in a net decrease of $0.1 million and $0.0 million, respectively, in depreciation expense. | 2012 | 2011 | 2012 | 2011 | Average depreciation rate | $ | 245 | $ | 293 | $ | 365 | ||||||||||||||||||||||||||||||||||
Average depreciable fleet (units) | 120,757 | 113,719 | 113,968 | 110,125 | Average gain on vehicles sold | (36 | ) | (51 | ) | (28 | ) | ||||||||||||||||||||||||||||||||||
Average depreciation rate | $ | 260 | $ | 236 | $ | 225 | $ | 249 | |||||||||||||||||||||||||||||||||||||
Average gain on vehicles sold | (14 | ) | (50 | ) | (41 | ) | (43 | ) | Average vehicle depreciation and lease charges, net | $ | 209 | $ | 242 | $ | 337 | ||||||||||||||||||||||||||||||
Average vehicle depreciation and lease charges, net | $ | 246 | $ | 186 | $ | 184 | $ | 206 | |||||||||||||||||||||||||||||||||||||
Depreciation expense for Non-Program Vehicles, which constitute substantially all of the Company's fleet, is recorded on a straight-line basis over the life of the vehicle, based on the original acquisition cost, the projected residual value at the time of sale, and the estimated length of time the vehicle will be held in service. The Company's vehicle depreciation rates will be periodically adjusted on a prospective basis when residual value assumptions change due to changes in used vehicle market conditions. | |||||||||||||||||||||||||||||||||||||||||||||
Vehicles purchased by vehicle rental companies under programs where either the rate of depreciation or the residual value is guaranteed by the manufacturer are referred to as "Program Vehicles." Vehicles not purchased under these programs and for which rental companies therefore bear residual value risk are referred to as "Non-Program Vehicles." | |||||||||||||||||||||||||||||||||||||||||||||
Depreciation expense for Non-Program Vehicles, which constitute substantially all of the Company's fleet, is recorded on a straight-line basis over the life of the vehicle, based on the original acquisition cost, the projected residual value at the time of sale, and the estimated length of time the vehicle will be in service. The Company's vehicle depreciation rates are periodically adjusted on a prospective basis when residual value assumptions change due to changes in used vehicle market conditions. | |||||||||||||||||||||||||||||||||||||||||||||
The estimation of residual values requires the Company to make assumptions regarding the expected age and mileage of the vehicle at the time of disposal. Additionally, residual value estimates must also take into consideration overall used vehicle market conditions at the time of sale, including the impact of seasonality on vehicle residuals. The difference in residual values assumed and the proceeds realized upon sale of the vehicle is recorded as a gain or loss on the sale of the vehicle, and is recorded as a component of net vehicle depreciation and lease charges in the condensed consolidated statements of comprehensive income. | |||||||||||||||||||||||||||||||||||||||||||||
EARNINGS_PER_SHARE_DOLLAR_THRI
EARNINGS PER SHARE - DOLLAR THRIFTY (Dollar Thrifty Automotive Group Inc) | 9 Months Ended | 12 Months Ended | |||||||||||||||||||||||
Sep. 30, 2012 | Dec. 31, 2011 | ||||||||||||||||||||||||
Dollar Thrifty Automotive Group Inc | |||||||||||||||||||||||||
EARNINGS PER SHARE | 5. EARNINGS PER SHARE | 2. EARNINGS PER SHARE | |||||||||||||||||||||||
Basic earnings per share ("EPS") is computed by dividing net income by the weighted-average number of common shares outstanding during the period. Diluted EPS is based on the combined weighted-average number of common shares and dilutive potential common shares outstanding which include, where appropriate, the assumed exercise of options. In computing diluted EPS, the Company utilizes the treasury stock method. | The computation of weighted average common and common equivalent shares used in the calculation of basic and diluted EPS is shown in the following table: | ||||||||||||||||||||||||
The computation of weighted-average common and common equivalent shares used in the calculation of basic and diluted EPS is shown in the following table (in thousands, except share and per share data): | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2011 | 2010 | 2009 | |||||||||||||||||||||||
Three Months Ended | Nine Months Ended | (In Thousands, Except Share and Per | |||||||||||||||||||||||
September 30, | September 30, | Share Data) | |||||||||||||||||||||||
2012 | 2011 | 2012 | 2011 | Net income | $ | 159,550 | $ | 131,216 | $ | 45,022 | |||||||||||||||
Net income | $ | 55,500 | $ | 66,621 | $ | 145,298 | $ | 125,649 | |||||||||||||||||
Basic EPS: | |||||||||||||||||||||||||
Basic EPS: | Weighted average common shares | 28,965,187 | 28,623,108 | 22,687,077 | |||||||||||||||||||||
Weighted-average common shares | 27,905,118 | 28,958,718 | 28,217,067 | 28,872,747 | |||||||||||||||||||||
Basic EPS | $ | 5.51 | $ | 4.58 | $ | 1.98 | |||||||||||||||||||
Basic EPS | $ | 1.99 | $ | 2.3 | $ | 5.15 | $ | 4.35 | |||||||||||||||||
Diluted EPS: | |||||||||||||||||||||||||
Diluted EPS: | Weighted average common shares | 28,965,187 | 28,623,108 | 22,687,077 | |||||||||||||||||||||
Weighted-average common shares | 27,905,118 | 28,958,718 | 28,217,067 | 28,872,747 | Shares contingently issuable: | ||||||||||||||||||||
Shares contingently issuable: | Stock options | 1,913,783 | 1,226,089 | 762,673 | |||||||||||||||||||||
Stock options | 803,982 | 1,964,321 | 854,272 | 1,984,419 | Performance awards and non-vested shares | 94,261 | 125,225 | 255,775 | |||||||||||||||||
Performance awards and non-vested shares | 127,418 | 113,734 | 111,431 | 90,581 | Employee compensation shares deferred | 47,232 | 49,374 | 105,402 | |||||||||||||||||
Employee compensation shares deferred | 24,577 | 46,604 | 29,805 | 48,440 | Director compensation shares deferred | 220,778 | 221,485 | 155,611 | |||||||||||||||||
Director compensation shares deferred | 224,535 | 221,452 | 223,952 | 220,554 | |||||||||||||||||||||
Shares applicable to diluted | 31,241,241 | 30,245,281 | 23,966,538 | ||||||||||||||||||||||
Shares applicable to diluted | 29,085,630 | 31,304,829 | 29,436,527 | 31,216,741 | |||||||||||||||||||||
Diluted EPS | $ | 5.11 | $ | 4.34 | $ | 1.88 | |||||||||||||||||||
Diluted EPS | $ | 1.91 | $ | 2.13 | $ | 4.94 | $ | 4.03 | |||||||||||||||||
At December 31, 2011 and 2010, all options to purchase shares of common stock were included in the computation of diluted EPS because no exercise price was greater than the average market price of the common shares. At December 31, 2009, 356,970 outstanding common stock equivalents that were anti-dilutive were excluded from the computation of diluted EPS. | |||||||||||||||||||||||||
For the three and nine months ended September 30, 2012 and 2011, all options to purchase shares of common stock were included in the computation of diluted EPS because no exercise price was greater than the average per share market price of the common shares. | |||||||||||||||||||||||||
Although there have been no significant equity grants since 2010, shares included in the diluted EPS calculation increased on a year-over-year basis from December 31, 2010 to December 31, 2011. The Company uses the treasury stock method to determine the denominator used in the diluted EPS calculation. To derive the denominator, the number of outstanding options is reduced by the number of shares that would be repurchased from assumed proceeds of certain defined items including the exercise price of the option and the excess tax benefit that would result from the assumed exercise of the option. However, the excess tax benefit component is included only if the assumed tax benefit would decrease the Company's current taxes payable. Since the Company is not a taxpayer for federal income tax purposes in 2011, it does not benefit from the tax deduction related to the assumed option exercises for purposes of the diluted share calculation as it did in 2010, thus resulting in an increase in the dilutive EPS denominator of approximately 700,000 shares. When the Company becomes a taxpayer in the future, the tax benefit will be incorporated into the diluted share calculation and the shares included in the diluted EPS calculation will be reduced by the shares repurchased from the assumed proceeds; however, other factors, such as the Company's stock price, could impact the diluted EPS calculation. See Note 13 for further discussion of share repurchase program. | |||||||||||||||||||||||||
Shares included in the diluted EPS calculation related to shares contingently issuable for stock options decreased on a year-over-year basis for both the three and nine months ended September 30, 2012, from the three and nine months ended September 30, 2011. The Company uses the treasury stock method to determine the denominator used in the diluted EPS calculation. To derive the denominator, the number of outstanding options is reduced by the number of shares that would be repurchased from assumed proceeds of certain defined items including the exercise price of the option and the excess tax benefit that would result from the assumed exercise of the option. However, the excess tax benefit component is included only if the assumed tax benefit would decrease the Company's current taxes payable. In 2012, the Company has projected that it will be a taxpayer and the tax benefit of the repurchases of shares from the assumed proceeds is incorporated into the diluted share calculation. The impact of the assumed tax benefit in 2012 is a reduction in diluted shares outstanding of approximately 500,000 shares. In 2011, the Company was not a taxpayer for federal income tax purposes and did not benefit from the tax deduction related to the assumed option exercises for purposes of the diluted share calculation, thus increasing the number of shares included in the diluted EPS calculation by approximately 800,000 shares. Other factors, such as the Company's stock price and stock options exercised, also impact the diluted EPS calculation. | |||||||||||||||||||||||||
During the three and nine months ended September 30, 2012, the Company repurchased 22,494 and 1,821,137 shares of its common stock, respectively, which reduced the weighted-average common shares outstanding. See Note 10 for further discussion of the share repurchase program. | |||||||||||||||||||||||||
RECEIVABLES_DOLLAR_THRIFTY
RECEIVABLES - DOLLAR THRIFTY (Dollar Thrifty Automotive Group Inc) | 9 Months Ended | 12 Months Ended | ||||||||||||||
Sep. 30, 2012 | Dec. 31, 2011 | |||||||||||||||
Dollar Thrifty Automotive Group Inc | ||||||||||||||||
RECEIVABLES | 6. RECEIVABLES | 3. RECEIVABLES | ||||||||||||||
Receivables consist of the following (in thousands): | Receivables consist of the following: | |||||||||||||||
September 30, | December 31, | December 31, | ||||||||||||||
2012 | 2011 | 2011 | 2010 | |||||||||||||
Trade accounts receivable and other | $ | 85,476 | $ | 74,403 | (In Thousands) | |||||||||||
Vehicle manufacturer receivables | 41,078 | 21,510 | Trade accounts receivable and other | $ | 74,403 | $ | 68,528 | |||||||||
Car sales receivable | 3,826 | 2,287 | Vehicle manufacturer receivables | 21,510 | 4,543 | |||||||||||
Car sales receivable | 2,287 | 1,100 | ||||||||||||||
130,380 | 98,200 | |||||||||||||||
Less: Allowance for doubtful accounts | (2,163 | ) | (2,840 | ) | 98,200 | 74,171 | ||||||||||
Less: Allowance for doubtful accounts | (2,840 | ) | (4,715 | ) | ||||||||||||
$ | 128,217 | $ | 95,360 | |||||||||||||
$ | 95,360 | $ | 69,456 | |||||||||||||
Trade accounts receivable and other include primarily amounts due from rental customers, franchisees and tour operators arising from billings under standard credit terms for services provided in the normal course of business. | ||||||||||||||||
Trade accounts receivable and other include primarily amounts due from rental customers, franchisees and tour operators arising from billings under standard credit terms for services provided in the normal course of business. | ||||||||||||||||
Vehicle manufacturer receivables include primarily amounts due under guaranteed residual, buyback and Non-Program Vehicle incentive programs, which are paid according to contract terms and are generally received within 60 days. | ||||||||||||||||
Vehicle manufacturer receivables include primarily amounts due under guaranteed residual, buyback and Non-Program Vehicle incentive programs, which are paid according to contract terms and are generally received within 60 days. | ||||||||||||||||
Car sales receivable include primarily amounts due from car sale auctions for the sale of both Program Vehicles and Non-Program Vehicles. | ||||||||||||||||
Car sales receivable include primarily amounts due from car sale auctions for the sale of both Program Vehicles and Non-Program Vehicles. | ||||||||||||||||
Allowance for doubtful accounts represents potentially uncollectible amounts owed to the Company from franchisees, tour operators, corporate account customers and others. | ||||||||||||||||
Allowance for doubtful accounts represents potentially uncollectible amounts owed to the Company from franchisees, tour operators, corporate account customers and others. | ||||||||||||||||
DEBT_AND_OTHER_OBLIGATIONS_DOL
DEBT AND OTHER OBLIGATIONS - DOLLAR THRIFTY | 6 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | |||||||||||||||||||||||||||||||||||||||||||||||||||||
DEBT AND OTHER OBLIGATIONS | Debt | Debt | 7. DEBT AND OTHER OBLIGATIONS | 8. DEBT AND OTHER OBLIGATIONS | ||||||||||||||||||||||||||||||||||||||||||||||||||
Our debt consists of the following (in millions of dollars): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Our debt consists of the following (in millions of dollars): | Debt and other obligations as of September 30, 2012 and December 31, 2011 consist of the following (in thousands): | Debt and other obligations consist of the following: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Facility | Average Interest Rate at December 31, 2012(1) | Fixed or | Maturity | December 31, | December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||
Facility | Average | Fixed or | Maturity | June 30, | December 31, | Floating | 2012 | 2011 | September 30, | December 31, | December 31, | |||||||||||||||||||||||||||||||||||||||||||
Interest Rate | Floating | 2013 | 2012 | Interest | 2012 | 2011 | 2011 | 2010 | ||||||||||||||||||||||||||||||||||||||||||||||
at June 30, | Interest | Rate | Vehicle debt and other obligations | (In Thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||
2013(1) | Rate | Corporate Debt | Asset-backed medium-term notes: | Vehicle debt and other obligations | ||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate Debt | Senior Term Facility | 3.75% | Floating | Mar-18 | $ | 2,125.50 | $ | 1,389.50 | Series 2011-2 notes (matures May 2015) | $ | 400,000 | $ | 400,000 | Asset-backed medium-term notes | ||||||||||||||||||||||||||||||||||||||||
Senior Term Facility | 3.26 | % | Floating | Mar-18 | $ | 2,114.80 | $ | 2,125.50 | Series 2011-1 notes (matures February 2015) | 500,000 | 500,000 | Series 2011-2 notes (matures May 2015) | $ | 400,000 | $ | — | ||||||||||||||||||||||||||||||||||||||
Senior ABL Facility | 2.89 | % | Floating | Mar-16 | 1,005.80 | 195 | Senior ABL Facility | 2.47% | Floating | Mar-16 | 195 | — | Series 2007-1 notes (matured July 2012) | — | 500,000 | Series 2011-1 notes (matures February 2015) | 500,000 | — | ||||||||||||||||||||||||||||||||||||
Senior Notes(2) | 6.58 | % | Fixed | 4/2018 - 10/2022 | 3,900.00 | 3,650.00 | Series 2007-1 notes (matures July 2012) | 500,000 | 500,000 | |||||||||||||||||||||||||||||||||||||||||||||
Promissory Notes | 6.96 | % | Fixed | 6/2012 - 1/2028 | 48.7 | 48.7 | Senior Notes(2) | 6.74% | Fixed | 10/2018–10/2022 | 3,650.00 | 2,638.60 | 900,000 | 1,400,000 | Series 2006-1 notes (matured May 2011) | — | 500,000 | |||||||||||||||||||||||||||||||||||||
Other Corporate Debt | 3.51 | % | Floating | Various | 58.5 | 88.7 | Discounts on asset-backed medium-term notes | (32 | ) | (45 | ) | |||||||||||||||||||||||||||||||||||||||||||
Unamortized Net Premium (Corporate) | 3.2 | 3.3 | Promissory Notes | 6.96% | Fixed | 6/2012–1/2028 | 48.7 | 224.7 | 1,400,000 | 1,000,000 | ||||||||||||||||||||||||||||||||||||||||||||
Asset-backed medium-term notes, net of discount | 899,968 | 1,399,955 | Discounts on asset-backed medium-term notes | (45 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Total Corporate Debt | 7,131.00 | 6,111.20 | Other Corporate Debt | 4.40% | Floating | Various | 88.7 | 49.6 | Series 2010-3 variable funding notes (matures December 2013) | 510,000 | — | |||||||||||||||||||||||||||||||||||||||||||
CAD Series 2012-1 notes (Canadian fleet financing) (matures August 2014) | 71,169 | — | Asset-backed medium-term notes, net of discount | 1,399,955 | 1,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||
Fleet Debt | Unamortized Net (Discount) Premium (Corporate) | 3.3 | (6.9 | ) | Series 2010-1 variable funding note (terminated October 2011) | — | 200,000 | |||||||||||||||||||||||||||||||||||||||||||||||
HVF U.S. ABS Program | Total debt and other obligations | $ | 1,481,137 | $ | 1,399,955 | CAD Series 2010-1 note (Canadian fleet financing) (terminated April 2011) | — | 49,118 | ||||||||||||||||||||||||||||||||||||||||||||||
HVF U.S. Fleet Variable Funding Notes: | Total Corporate Debt | 6,111.20 | 4,295.50 | |||||||||||||||||||||||||||||||||||||||||||||||||||
HVF Series 2009-1(3) | 1.04 | % | Floating | Mar-14 | 2,590.00 | 2,350.00 | Total vehicle debt and other obligations | 1,399,955 | 1,249,118 | |||||||||||||||||||||||||||||||||||||||||||||
Fleet Debt | Asset-Backed Medium-Term Notes | |||||||||||||||||||||||||||||||||||||||||||||||||||||
2,590.00 | 2,350.00 | HVF U.S. ABS Program | Non-vehicle debt | |||||||||||||||||||||||||||||||||||||||||||||||||||
HVF U.S. Fleet Variable Funding Notes: | Asset-backed medium-term notes were issued by RCFC in October 2011 (the "Series 2011-2 notes"), July 2011 (the "Series 2011-1 notes"), and May 2007 (the "Series 2007-1 notes"). | Term Loan | — | 148,125 | ||||||||||||||||||||||||||||||||||||||||||||||||||
HVF U.S. Fleet Medium Term Notes | HVF Series 2009-1(3) | 1.11% | Floating | Mar-14 | 2,350.00 | 1,000.00 | ||||||||||||||||||||||||||||||||||||||||||||||||
HVF Series 2009-2(3) | 5.37 | % | Fixed | 3/2013 - 3/2015 | 807.5 | 1,095.90 | The $400 million of Series 2011-2 notes were issued at a fixed interest rate of 3.21% and will be repaid monthly over a six-month period, beginning in December 2014, with an expected final maturity date of May 2015. At September 30, 2012, the Series 2011-2 notes required compliance with a maximum corporate leverage ratio of 3.0 to 1.0, a minimum corporate interest coverage ratio of 2.0 to 1.0 and a minimum corporate EBITDA requirement of $75 million, consistent with the terms of the Company's Revolving Credit Facility (hereinafter defined). | Total non-vehicle debt | — | 148,125 | ||||||||||||||||||||||||||||||||||||||||||||
HVF Series 2010-1(3) | 3.77 | % | Fixed | 2/2014 - 2/2018 | 749.8 | 749.8 | HVF Series 2010-2(3) | N/A | Floating | Mar-13 | — | 170 | ||||||||||||||||||||||||||||||||||||||||||
HVF Series 2011-1(3) | 2.86 | % | Fixed | 3/2015 - 3/2017 | 598 | 598 | The Series 2011-1 notes are comprised of $420 million principal amount of Series 2011-1 Class A Notes with a fixed interest rate of 2.51% and $80 million principal amount of Series 2011-1 Class B Notes with a fixed interest rate of 4.38%. On a blended basis, the average annual coupon on the combined $500 million principal amount of the Series 2011-1 notes is approximately 2.81%. The Series 2011-1 notes will be repaid monthly over a six-month period, beginning in September 2014, with an expected final maturity date in February 2015. | Total debt and other obligations | $ | 1,399,955 | $ | 1,397,243 | ||||||||||||||||||||||||||||||||||||||||||
HVF Series 2013-1(3) | 1.68 | % | Fixed | 8/2016 - 8/2018 | 950 | — | HVF Series 2011-2(3) | N/A | Floating | Apr-12 | — | 175 | ||||||||||||||||||||||||||||||||||||||||||
The Series 2007-1 notes began scheduled amortization in February 2012 and were paid in full in July 2012. During the three and nine months ended September 30, 2012, $83.3 million and $500.0 million of principal payments were made, respectively. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
3,105.30 | 2,443.70 | 2,350.00 | 1,345.00 | Asset-Backed Medium-Term Notes | ||||||||||||||||||||||||||||||||||||||||||||||||||
Variable Funding Notes | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
RCFC U.S. ABS Program | HVF U.S. Fleet Medium Term Notes | Asset-backed medium-term notes were issued by RCFC in October 2011 (the "Series 2011-2 notes"), July 2011 (the "Series 2011-1 notes"), May 2007 (the "Series 2007-1 notes") and March 2006 (the "Series 2006-1 notes"). | ||||||||||||||||||||||||||||||||||||||||||||||||||||
RCFC U.S. Fleet Variable Funding Notes | HVF Series 2009-2(3) | 5.11% | Fixed | 3/2013–3/2015 | 1,095.90 | 1,384.30 | The Company had drawn $510 million of the $600 million Series 2010-3 variable funding note ("VFN") at September 30, 2012. At the end of the revolving period, the then-outstanding principal amount of the Series 2010-3 VFN will be repaid monthly over a three-month period, beginning in October 2013, with the final payment due in December 2013. The facility bears interest at a spread of 130 basis points above each funding institution's cost of funds, which may be based on either the weighted-average commercial paper rate, a floating one-month LIBOR rate or a Eurodollar rate. The Series 2010-3 VFN had an interest rate of 1.57% at September 30, 2012. The Series 2010-3 VFN also has a facility fee commitment rate of up to 0.8% per annum on any unused portion of the facility. The Series 2010-3 VFN requires compliance with a maximum corporate leverage ratio of 3.0 to 1.0, a minimum corporate interest coverage ratio of 2.0 to 1.0 and a minimum corporate EBITDA requirement of $75 million, consistent with the terms of the Company's Revolving Credit Facility. | |||||||||||||||||||||||||||||||||||||||||||||||
RCFC Series 2010-3 Notes(3)(4) | 1.03 | % | Floating | Dec-13 | 540 | 519 | The Series 2011-2 notes of $400 million were issued at a fixed interest rate of 3.21% and will be repaid monthly over a six-month period, beginning in December 2014, with an expected final maturity date of May 2015. At December 31, 2011, the Series 2011-2 notes required compliance with a maximum leverage ratio of 2.25 to 1.00 and a minimum interest coverage ratio of 2.00 to 1.00, consistent with the terms of the Company's Senior Secured Credit Facilities. These financial covenants were modified in connection with the Company's entry into the New Revolving Credit Facility. See below for further discussion. | |||||||||||||||||||||||||||||||||||||||||||||||
RCFC U.S. Fleet Medium Term Notes | HVF Series 2010-1(3) | 3.77% | Fixed | 2/2014–2/2018 | 749.8 | 749.8 | Canadian Fleet Financing | |||||||||||||||||||||||||||||||||||||||||||||||
RCFC Series 2011-1 Notes(3)(4) | 2.81 | % | Fixed | Feb-15 | 500 | 500 | The Series 2011-1 notes are comprised of $420 million principal amount of Series 2011-1 Class A Notes with a fixed interest rate of 2.51% and $80 million principal amount of Series 2011-1 Class B Notes with a fixed interest rate of 4.38%. On a blended basis, the average annual coupon on the combined $500 million principal amount of the Series 2011-1 notes is approximately 2.81%. The Series 2011-1 notes will be repaid monthly over a six-month period, beginning in September 2014, with an expected final maturity date in February 2015. | |||||||||||||||||||||||||||||||||||||||||||||||
RCFC Series 2011-2 Notes(3)(4) | 3.21 | % | Fixed | May-15 | 400 | 400 | HVF Series 2011-1(3) | 2.86% | Fixed | 3/2015–3/2017 | 598 | 598 | On March 9, 2012, the Company completed a CAD Series 2012-1 $150 million Canadian fleet securitization program (the "CAD Series 2012-1 notes"). This program has a term of two years and requires a program fee of 150 basis points above the one-month rate for Canadian dollar denominated bankers' acceptances or weighted average commercial paper rates, as well as a utilization fee of 65 basis points on the unused CAD Series 2012-1 amount. At September 30, 2012, CAD $70 million (US $71.2 million) of the CAD Series 2012-1 notes had been drawn. The CAD Series 2012-1 notes had an interest rate of 2.69% at September 30, 2012. | |||||||||||||||||||||||||||||||||||||||||
The Series 2007-1 notes will begin scheduled amortization in February 2012, and will amortize over a six-month period with an expected final maturity date in July 2012. The Series 2007-1 notes are insured by Financial Guaranty Insurance Company ("FGIC"). The Series 2007-1 notes are floating rate notes that were previously effectively converted to fixed rate notes through entry into swap agreements. At December 31, 2011, the Series 2007-1 notes had an interest rate of 0.4%. On December 28, 2011, the Company paid $8.8 million to terminate its 2007 swap agreements. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
1,440.00 | 1,419.00 | 2,443.70 | 2,732.10 | Revolving Credit Facility | ||||||||||||||||||||||||||||||||||||||||||||||||||
The Series 2006-1 notes began scheduled amortization in December 2010 and were paid in full in May 2011. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Donlen ABS Program | On February 16, 2012, the Company terminated the existing senior secured credit facility and replaced it with a new $450 million revolving credit facility (the "Revolving Credit Facility") that expires in February 2017. Pricing under the Revolving Credit Facility is grid-based with a spread above LIBOR that will range from 300 basis points to 350 basis points, based upon usage of the facility. Commitment fees under the Revolving Credit Facility will equal 50 basis points on unused capacity. Under the Revolving Credit Facility, the Company is subject to a maximum corporate leverage ratio of 3.0 to 1.0, a minimum corporate interest coverage ratio of 2.0 to 1.0 and a minimum corporate EBITDA requirement of $75 million. In addition, the Revolving Credit Facility contains various restrictive covenants including, among others, limitations on the Company's and its subsidiaries' ability to incur additional indebtedness, make loans, acquisitions or other investments, grant liens on their respective property, dispose of assets, pay dividends or conduct stock repurchases, make capital expenditures or engage in certain transactions with affiliates. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Donlen GN II Variable Funding Notes(5) | 1 | % | Floating | Dec-13 | 943.8 | 899.3 | RCFC U.S. ABS Program | The assets of RCFC, including revenue-earning vehicles related to the asset-backed medium-term notes, restricted cash and investments, and certain receivables related to revenue-earning vehicles, are available to satisfy the claims of its creditors. Dollar and Thrifty lease vehicles from RCFC under the terms of certain master lease and servicing agreements. The asset-backed note indentures also provide for additional credit enhancement through over collateralization of the vehicle fleet, cash or letters of credit and/or maintenance of a liquidity reserve. RCFC is in compliance with the terms of the indentures. | ||||||||||||||||||||||||||||||||||||||||||||||
RCFC U.S. Fleet Variable Funding Notes | Under the Revolving Credit Facility, the Company has the ability (subject to specified conditions and limitations), among other things, to incur up to $400 million of unsecured indebtedness; to enter into permitted acquisitions of up to $250 million in the aggregate during the term of the Revolving Credit Facility and to incur financing and assume indebtedness in connection therewith; to make investments in the Company's U.S. special-purpose financing entities (including RCFC) and its Canadian special-purpose financing entities, in aggregate amounts at any time outstanding of up to $750 million and $150 million, respectively; and to make dividend, stock repurchase and other restricted payments in an amount up to $300 million, plus 50% of cumulative adjusted net income (or minus 100% of cumulative adjusted net loss, as applicable) for the period beginning January 1, 2012 and ending on the last day of the fiscal quarter immediately preceding the restricted payment. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Fleet Debt | RCFC Series 2010-3 Notes(3)(4) | 1.06% | Floating | Dec-13 | 519 | — | Variable Funding Notes | |||||||||||||||||||||||||||||||||||||||||||||||
U.S. Fleet Financing Facility | 2.95 | % | Floating | Sep-15 | 171 | 166 | The Company had letters of credit outstanding under the Revolving Credit Facility of $0.1 million for U.S. enhancement and $40.8 million in general purpose letters of credit with a remaining available capacity of $409.1 million at September 30, 2012. | |||||||||||||||||||||||||||||||||||||||||||||||
European Revolving Credit Facility | 2.67 | % | Floating | Jun-15 | 357.9 | 185.3 | RCFC U.S. Fleet Medium Term Notes | The Series 2010-1 variable funding note ("VFN") of $200 million and the Series 2010-2 VFN of $300 million were both terminated in October of 2011. | ||||||||||||||||||||||||||||||||||||||||||||||
European Fleet Notes | 8.5 | % | Fixed | Jul-15 | 520.5 | 529.4 | RCFC Series 2011-1 Notes(3)(4) | 2.81% | Fixed | Feb-15 | 500 | — | Covenant Compliance | |||||||||||||||||||||||||||||||||||||||||
European Securitization(3) | 2.5 | % | Floating | Jul-14 | 363 | 242.2 | On September 29, 2011, RCFC renewed the Series 2010-3 VFN, increasing the capacity from $450 million to $600 million and extending the revolving period from the previous 364-day structure to two years. The facility bears interest at a spread of 130 basis points above each funding institution's cost of funds, which may be based on either the weighted-average commercial paper rate, a floating one-month LIBOR rate or a Eurodollar rate. The Series 2010-3 VFN was undrawn at December 31, 2011. The Series 2010-3 VFN has a facility fee commitment rate of up to 0.8% per annum on any unused portion of the facility. At the end of the revolving period, the then-outstanding principal amount of the Series 2010-3 VFN will be repaid monthly over a three-month period, beginning in October 2013, with the final payment in December 2013. At December 31, 2011, the Series 2010-3 VFN required compliance with a maximum leverage ratio of 2.25 to 1.00 and a minimum interest coverage ratio of 2.00 to 1.00, consistent with the terms of the Company's Senior Secured Credit Facilities. These financial covenants were modified in connection with the Company's entry into the New Revolving Credit Facility. See below for further discussion. | |||||||||||||||||||||||||||||||||||||||||||||||
Hertz-Sponsored Canadian Securitization(3) | 2.14 | % | Floating | Mar-14 | 124.2 | 100.5 | RCFC Series 2011-2 Notes(3)(4) | 3.21% | Fixed | May-15 | 400 | — | As of September 30, 2012, the Company is in compliance with all covenants under its various financing arrangements. | |||||||||||||||||||||||||||||||||||||||||
Dollar Thrifty Sponsored Canadian Securitization(3)(4) | 2.13 | % | Floating | Aug-14 | 76.4 | 55.3 | Canadian Fleet Financing | |||||||||||||||||||||||||||||||||||||||||||||||
Australian Securitization(3)(6) | 4.17 | % | Floating | Dec-14 | 119.7 | 148.9 | 1,419.00 | — | ||||||||||||||||||||||||||||||||||||||||||||||
Brazilian Fleet Financing Facility | 13.89 | % | Floating | Oct-13 | 13 | 14 | On April 18, 2011, due to the Company's excess cash position and the cost differential between the interest rate on its Canadian fleet financing and interest rates earned on investment of excess cash, the Company fully repaid the outstanding balance of CAD $54.0 million (US $56.0 million) and terminated the CAD Series 2010 Program. During the remainder of 2011, the Company funded any Canadian fleet needs with cash on hand and cash generated from operations. Direct investments in the Canadian fleet funded from cash and cash equivalents totaled CAD $64.9 million (US $63.5 million) as of December 31, 2011. | |||||||||||||||||||||||||||||||||||||||||||||||
Capitalized Leases | 4.08 | % | Floating | Various | 429.6 | 337.6 | Donlen ABS Program | |||||||||||||||||||||||||||||||||||||||||||||||
Unamortized Discount (Fleet) | 8.8 | 12.1 | Donlen GN II Variable Funding Notes(3) | 1.15% | Floating | Dec-13 | 899.3 | 811.2 | Senior Secured Credit Facilities | |||||||||||||||||||||||||||||||||||||||||||||
2,184.10 | 1,791.30 | Other Fleet Debt | At December 31, 2011, the senior secured credit facilities (the "Senior Secured Credit Facilities"), which were refinanced and terminated in February 2012, were comprised of a $231.3 million revolving credit facility (the "Revolving Credit Facility") as the term loan portion of the Senior Secured Credit Facilities was repaid at $143.1 million and terminated in August 2011. | |||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Fleet Financing Facility | 3.27% | Floating | Sep-15 | 166 | 136 | |||||||||||||||||||||||||||||||||||||||||||||||||
Total Fleet Debt | 10,263.20 | 8,903.30 | The Company had letters of credit outstanding under the Revolving Credit Facility of $144.3 million for U.S. enhancement and $54.7 million in general purpose enhancements, with remaining available capacity of $32.3 million at December 31, 2011. | |||||||||||||||||||||||||||||||||||||||||||||||||||
European Revolving Credit Facility | 2.86% | Floating | Jun-15 | 185.3 | 200.6 | |||||||||||||||||||||||||||||||||||||||||||||||||
Total Debt | $ | 17,394.20 | $ | 15,014.50 | On February 16, 2012, the Company terminated the existing Senior Secured Credit Facilities and replaced it with a new $450 million revolving credit facility (the "New Revolving Credit Facility") that expires in February 2017. Pricing under the New Revolving Credit Facility is grid based with a spread above LIBOR that will range from 300 basis points to 350 basis points, based upon usage of the facility. Commitment fees under the New Revolving Credit Facility will equal 50 basis points on unused capacity. Under the New Revolving Credit Facility, the Company is subject to a maximum corporate leverage ratio of 3.0 to 1.0, a minimum corporate interest coverage ratio of 2.0 to 1.0, and a minimum corporate EBITDA requirement of $75 million. In addition, the New Revolving Credit Facility contains covenants restricting its ability to undertake certain activities, including, among others, restrictions on the Company and its subsidiaries' ability to incur additional indebtedness, make loans, acquisitions or other investments, grant liens on its property, dispose of assets, pay dividends or conduct stock repurchases, make capital expenditures or engage in certain transactions with affiliates. | |||||||||||||||||||||||||||||||||||||||||||||||||
European Fleet Notes | 8.50% | Fixed | Jul-15 | 529.4 | 517.7 | |||||||||||||||||||||||||||||||||||||||||||||||||
Under the New Revolving Credit Facility, certain restrictions were relaxed or extended from the Senior Secured Credit Facilities, including the Company's ability, subject to certain limitations, to make dividend, share repurchase and other restricted payments under the New Revolving Credit Facility, in an amount up to $300 million, plus 50% of cumulative adjusted net income (or minus 100% of cumulative adjusted net loss, as applicable) for the period beginning January 1, 2012 and ending on the last day of the fiscal quarter immediately preceding the restricted payment. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
European Securitization(3) | 2.48% | Floating | Jul-14 | 242.2 | 256.2 | |||||||||||||||||||||||||||||||||||||||||||||||||
Note: | Covenant Compliance | |||||||||||||||||||||||||||||||||||||||||||||||||||||
For further information on the definitions and terms of our debt, see Note 5 of the Notes to our audited annual consolidated financial statements included in our Form 10-K under the caption "Item 8—Financial Statements and Supplementary Data." | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
The Company was in compliance with all covenants under its financing arrangements as of December 31, 2011. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
-1 | Facility | Average Interest Rate at December 31, 2012(1) | Fixed or | Maturity | December 31, | December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||
As applicable, reference is to the June 30, 2013 weighted average interest rate (weighted by principal balance). | Floating | 2012 | 2011 | During 2011, the Company paid $14.8 million in financing issuance costs primarily related to the issuance of its Series 2011-1 notes and the renewal of the Series 2010-3 VFN. | ||||||||||||||||||||||||||||||||||||||||||||||||||
Interest | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
-2 | Rate | Expected maturities of debt and other obligations outstanding at December 31, 2011 are as follows: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
References to our "Senior Notes" include the series of Hertz's unsecured senior notes set forth in the table below. As of June 30, 2013 and December 31, 2012, the outstanding principal amount for each such series of the Senior Notes is as specified below. | Hertz-Sponsored Canadian Securitization(3) | 2.16% | Floating | Jun-13 | 100.5 | 68.3 | ||||||||||||||||||||||||||||||||||||||||||||||||
Dollar Thrifty Sponsored Canadian Securitization(3)(4) | 2.13% | Floating | Aug-14 | 55.3 | — | 2012 | 2013 | 2014 | 2015 | Thereafter | ||||||||||||||||||||||||||||||||||||||||||||
Outstanding Principal | (In Thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | Australian Securitization(3) | 4.61% | Floating | Dec-14 | 148.9 | 169.3 | ||||||||||||||||||||||||||||||||||||||||||||||||
Senior Notes | June 30, | December 31, | Asset-backed medium-term notes | $ | 500,000 | $ | — | $ | 400,000 | $ | 500,000 | $ | — | |||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | Brazilian Fleet Financing Facility | 13.07% | Floating | Feb-13 | 14 | 23.1 | |||||||||||||||||||||||||||||||||||||||||||||||
4.25% Senior Notes due April 2018 | $ | 250 | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
7.50% Senior Notes due October 2018 | 700 | 700 | Capitalized Leases | 4.40% | Floating | Various | 337.6 | 363.7 | ||||||||||||||||||||||||||||||||||||||||||||||
6.75% Senior Notes due April 2019 | 1,250.00 | 1,250.00 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
5.875% Senior Notes due October 2020 | 700 | 700 | Unamortized Net (Discount) Premium (Fleet) | 12.1 | (10.9 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
7.375% Senior Notes due January 2021 | 500 | 500 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
6.25% Senior Notes due October 2022 | 500 | 500 | 1,791.30 | 1,724.00 | ||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 3,900.00 | $ | 3,650.00 | Total Fleet Debt | 8,903.30 | 6,612.30 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total Debt | $ | 15,014.50 | $ | 10,907.80 | ||||||||||||||||||||||||||||||||||||||||||||||||||
-3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Maturity reference is to the "expected final maturity date" as opposed to the subsequent "legal maturity date." The expected final maturity date is the date by which Hertz and investors in the relevant indebtedness expect the relevant indebtedness to be repaid. The legal final maturity date is the date on which the relevant indebtedness is legally due and payable. | _______________________________________________________________________________ | |||||||||||||||||||||||||||||||||||||||||||||||||||||
-4 | -1 | As applicable, reference is to the December 31, 2012 weighted average interest rate (weighted by principal balance). | ||||||||||||||||||||||||||||||||||||||||||||||||||||
RCFC U.S. ABS Program and the Dollar Thrifty-Sponsored Canadian Securitization represent fleet debt acquired in connection with the Dollar Thrifty acquisition on November 19, 2012. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
-2 | References to our "Senior Notes" include the series of Hertz's unsecured senior notes set forth in the table below. As of December 31, 2012 and December 31, 2011, the outstanding principal amount for each such series of the Senior Notes is also specified below. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Maturities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
The aggregate amounts of maturities of debt for each of the twelve-month periods ending June 30 (in millions of dollars) are as follows: | Outstanding Principal (in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior Notes | December 31, 2012 | 31-Dec-11 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
8.875% Senior Notes due January 2014 | $ | — | $ | 162.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | $ | 7,028.30 | (including $6,741.1 of other short-term borrowings*) | |||||||||||||||||||||||||||||||||||||||||||||||||||
2015 | $ | 2,124.40 | 7.875% Senior Notes due January 2014 | — | 276.3 | -€ 213.50 | ||||||||||||||||||||||||||||||||||||||||||||||||
2016 | $ | 1,140.00 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
2017 | $ | 366.5 | 7.50% Senior Notes due October 2018 | 700 | 700 | |||||||||||||||||||||||||||||||||||||||||||||||||
2018 | $ | 2,819.10 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
After 2018 | $ | 3,903.90 | 6.75% Senior Notes due April 2019 | 1,250.00 | 1,000.00 | |||||||||||||||||||||||||||||||||||||||||||||||||
5.875% Senior Notes due October 2020 | 700 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
* | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Our short-term borrowings as of June 30, 2013 include, among other items, the amounts outstanding under the Senior ABL Facility, HVF U.S. Fleet Variable Funding Notes, RCFC U.S. Fleet Variable Funding Notes, Donlen GN II Variable Funding Notes, U.S. Fleet Financing Facility, European Revolving Credit Facility, European Securitization, Hertz-Sponsored Canadian Securitization, Dollar Thrifty-Sponsored Canadian Securitization, Australian Securitization, Brazilian Fleet Financing Facility and Capitalized Leases. These amounts are reflected as short-term borrowings, regardless of the facility maturity date, as these facilities are revolving in nature and/or the outstanding borrowings have maturities of three months or less. As of June 30, 2013, short-term borrowings had a weighted average interest rate of 1.8%. | 7.375% Senior Notes due January 2021 | 500 | 500 | |||||||||||||||||||||||||||||||||||||||||||||||||||
We are highly leveraged and a substantial portion of our liquidity needs arise from debt service on our indebtedness and from the funding of our costs of operations and capital expenditures. We believe that cash generated from operations and cash received on the disposal of vehicles and equipment, together with amounts available under various liquidity facilities will be adequate to permit us to meet our debt maturities over the next twelve months. | 6.25% Senior Notes due October 2022 | 500 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Letters of Credit | $ | 3,650.00 | $ | 2,638.60 | ||||||||||||||||||||||||||||||||||||||||||||||||||
As of June 30, 2013, there were outstanding standby letters of credit totaling $664.4 million. Of this amount, $638.0 million was issued under the Senior Credit Facilities. As of June 30, 2013, none of these letters of credit have been drawn upon. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2013 Events | -3 | Maturity reference is to the "expected final maturity date" as opposed to the subsequent "legal maturity date." The expected final maturity date is the date by which Hertz and investors in the relevant indebtedness expect the relevant indebtedness to be repaid. The legal final maturity date is the date on which the relevant indebtedness is legally due and payable. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
In January 2013, Hertz Vehicle Financing LLC, or "HVF," an insolvency remote, direct, wholly-owned, special purpose subsidiary of Hertz, completed the issuance of $950.0 million in aggregate principal amount of three year and five year Series 2013-1 Rental Car Asset Backed Notes, Class A and Class B. The $282.75 million of three year Class A notes carry a 1.12% coupon, the $42.25 million of three year Class B notes carry a 1.86% coupon, the $543.75 million of five year Class A notes carry a 1.83% coupon, and the $81.25 million of five year Class B notes carry a 2.48% coupon. The three year notes and five year notes have expected final payment dates in August 2016 and August 2018, respectively. The Class B notes are subordinated to the Class A notes. | -4 | RCFC U.S. ABS Program and the Dollar Thrifty-Sponsored Canadian Securitization represent fleet debt acquired in connection with the Dollar Thrifty acquisition on November 19, 2012. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Maturities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
The net proceeds from the sale of HVF's Series 2013-1 Rental Car Asset Backed Notes was, to the extent permitted by the applicable agreements, (i) used to pay the purchase price of vehicles acquired by HVF pursuant to HVF's U.S. ABS Program (as defined herein), (ii) used to pay the principal amount of other HVF U.S. ABS Program indebtedness that is then permitted or required to be paid or (iii) released to HVF to be distributed to Hertz or otherwise used by HVF for general purposes. | The aggregate amounts of maturities of debt for each of the twelve-month periods ending December 31 (in millions of dollars) are as follows: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
In February 2013, Hertz caused its Brazilian operating subsidiary to amend the Brazilian Fleet Financing Facility to extend the maturity date from February 2013 to October 2013. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2013 | $ | 5,744.10 | (including $5,244.0 of other short-term borrowings*) | |||||||||||||||||||||||||||||||||||||||||||||||||||
In March 2013, Hertz issued $250 million in aggregate principal amount of 4.25% Senior Notes due 2018. The proceeds of this March 2013 offering were used by us to replenish a portion of our liquidity, after having dividended $467.2 million in available liquidity to Hertz Holdings, which Hertz Holdings used to repurchase 23,200,000 shares of its common stock in March 2013. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | $ | 1,122.10 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
In April 2013, Hertz entered into an Amendment No. 2, or "Amendment No. 2," to the Senior Term Facility, primarily to reduce the interest rate applicable to a portion of the outstanding term loans under the Senior Term Facility. Prior to Amendment No. 2, approximately $1,372.0 million of tranche B term loans, or "Tranche B Term Loans", under the Senior Term Facility bore interest at a floating rate measured by reference to, at Hertz's option, either (i) an adjusted London inter-bank offered rate not less than 1.00 percent plus a borrowing margin of 2.75 percent per annum or (ii) an alternate base rate plus a borrowing margin of 1.75 percent per annum. Pursuant to Amendment No. 2, certain of the existing lenders under the Senior Term Facility converted their existing Tranche B Term Loans into a new tranche of tranche B-2 term loans, or the "Tranche B-2 Term Loans", in an aggregate principal amount, along with new loans advanced by certain new lenders, of approximately $1,372.0 million. The proceeds of Tranche B-2 Term Loans advanced by the new lenders were used to prepay in full all of the Tranche B Term Loans that were not converted into Tranche B-2 Term Loans. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2015 | $ | 1,894.10 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
The Tranche B-2 Term Loans bear interest at a floating rate measured by reference to, at Hertz's option, either (i) an adjusted London inter-bank offered rate not less than 0.75 percent plus a borrowing margin of 2.25 percent per annum or (ii) an alternate base rate plus a borrowing margin of 1.25 percent per annum. The terms and conditions of the new Tranche B-2 Term Loans with respect to maturity, collateral, and covenants are otherwise unchanged compared to the Tranche B Term Loans. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2016 | $ | 267.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
In May 2013, the U.K. Leveraged Financing was amended to provide for additional amounts available under the U.K. Leveraged Financing of £25 million (the equivalent of $38.3 million as of June 30, 2013) for a commitment period running from May 30, 2013 to October 30, 2013. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2017 | $ | 219.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
In May 2013, HVF amended the HVF Series 2009-1 Notes to permit aggregate maximum borrowings of $2,738.8 million (subject to borrowing base availability). | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
After 2017 | $ | 5,752.50 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
In June 2013, Hertz Holdings Netherlands B.V., an indirect wholly-owned subsidiary of Hertz organized under the laws of Netherlands, or "HHN BV," amended the European Revolving Credit Facility to provide for aggregate maximum borrowings of an additional €100 million (the equivalent of $130.1 million as of June 30, 2013), subject to borrowing base availability, for a commitment period running from June 12, 2013 to December 16, 2013. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
_______________________________________________________________________________ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
In the second quarter of 2013, HC Limited Partnership amended the Hertz-Sponsored Canadian Securitization to extend the maturity from June 2013 to March 2014. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
For subsequent events relating to our indebtedness, see Note 18—Subsequent Events. | * | Our short-term borrowings as of December 31, 2012 include, among other items, the amounts outstanding under the Senior ABL Facility, HVF U.S. Fleet Variable Funding Notes, RCFC U.S. Fleet Variable Funding Notes, Donlen GN II Variable Funding Notes, U.S. Fleet Financing Facility, European Revolving Credit Facility, European Securitization, Hertz-Sponsored Canadian Securitization, Dollar Thrifty-Sponsored Canadian Securitization, Australian Securitization, Brazilian Fleet Financing Facility and Capitalized Leases. These amounts are reflected as short-term borrowings, regardless of the facility maturity date, as these facilities are revolving in nature and/or the outstanding borrowings have maturities of three months or less. As of December 31, 2012, short-term borrowings had a weighted average interest rate of 1.8%. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
We are highly leveraged and a substantial portion of our liquidity needs arise from debt service on our indebtedness and from the funding of our costs of operations, acquisitions and capital expenditures. We believe that cash generated from operations and cash received on the disposal of vehicles and equipment, together with amounts available under various liquidity facilities will be adequate to permit us to meet our debt maturities over the next twelve months. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Registration Rights | Letters of Credit | |||||||||||||||||||||||||||||||||||||||||||||||||||||
As of December 31, 2012, there were outstanding standby letters of credit totaling $681.4 million. Of this amount, $626.6 million was issued under the Senior Credit Facilities. As of December 31, 2012, none of these letters of credit have been drawn upon. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pursuant to the terms of the exchange and registration rights agreement entered into in connection with the issuance of $250 million in aggregate principal amount of the 4.25% Senior Notes due 2018 in March 2013, Hertz agreed to file a registration statement under the Securities Act of 1933, as amended, to permit either the exchange of such notes for registered notes or, in the alternative, the registered resale of such notes. Hertz's failure to meet its obligations under the exchange and registration rights agreement, including by failing to have the registration statement become effective by March 2014 or failing to complete the exchange offer by April 2014, will result in Hertz incurring special interest on such notes at a per annum rate of 0.25% for the first 90 days of any period where any such failure has occurred and is continuing, which rate will be increased by an additional 0.25% during each subsequent 90 day period, up to a maximum of 0.50%. A registration statement on Form S-4 was filed with the SEC on June 26, 2013 covering the exchange of such notes. We do not believe the special interest obligation is probable, and as such, we have not recorded any amounts with respect to this registration payment arrangement. | Acquisition Bridge Financing | |||||||||||||||||||||||||||||||||||||||||||||||||||||
In August 2012 in conjunction with signing of the merger agreement with Dollar Thrifty, Hertz obtained $1,950.0 million in financing commitments for use in acquiring Dollar Thrifty. In October 2012 after having secured permanent financing for the Dollar Thrifty acquisition, Hertz terminated these commitments having never drawn upon them. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Guarantees and Security | CORPORATE DEBT | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior Credit Facilities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
In February 2013 and March 2013, we added Dollar Thrifty and certain of its subsidiaries as guarantors under certain of our debt instruments and credit facilities including the Senior Term Facility and the Senior Notes. There have been no material changes to the guarantees and security provisions of the debt instruments and credit facilities under which our indebtedness as of June 30, 2013 has been issued from the terms as disclosed in our Form 10-K. | Senior Term Facility: In March 2011, Hertz entered into a credit agreement that provides a $1,400.0 million term loan, or as amended, the ‘‘Senior Term Facility.’’ In addition, the Senior Term Facility includes a separate incremental pre-funded synthetic letter of credit facility in an aggregate principal amount of $200.0 million. Subject to the satisfaction of certain conditions and limitations, the Senior Term Facility allows for the incurrence of incremental term and/or revolving loans. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
On October 9, 2012, Hertz entered into an Incremental Commitment Amendment to the Senior Term Facility which provided for commitments for the Incremental Term Loans of $750.0 million under the Senior Term Facility. Contemporaneously with the consummation of the Dollar Thrifty acquisition, the Incremental Term Loans were fully drawn and the proceeds therefrom were used to: (i) finance a portion of the consideration in connection with the Dollar Thrifty acquisition, (ii) pay off obligations of Dollar Thrifty and its subsidiaries in connection with the Dollar Thrifty acquisition and (iii) pay fees and other transaction expenses in connection with the Dollar Thrifty acquisition and the related financing transactions. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Covenant Compliance | The Incremental Term Loans are secured by the same collateral and guaranteed by the same guarantors as the previously existing term loans under the Senior Term Facility. The Incremental Term Loans will, like the previously existing term loans under the Senior Term Facility, mature on March 11, 2018 and the interest rate per annum applicable thereto will be the same as such previously existing term loans. The other terms of the Incremental Term Loans are also generally the same. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior ABL Facility: In March 2011, Hertz, HERC, and certain other of our subsidiaries entered into a credit agreement that provides for aggregate maximum borrowings of $1,800.0 million (subject to borrowing base availability) on a revolving basis under an asset‑based revolving credit facility. We refer to this facility, as amended, from time to time, as the “Senior ABL Facility.” Up to $1,500.0 million of the Senior ABL Facility is available for the issuance of letters of credit, subject to certain conditions including issuing lender participation. Subject to the satisfaction of certain conditions and limitations, the Senior ABL Facility allows for the addition of incremental revolving and/or term loan commitments. In addition, the Senior ABL Facility permits Hertz to increase the amount of commitments under the Senior ABL Facility with the consent of each lender providing an additional commitment, subject to satisfaction of certain conditions. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Under the terms of our Senior Term Facility and Senior ABL Facility, we are not subject to ongoing financial maintenance covenants; however, under the Senior ABL Facility, failure to maintain certain levels of liquidity will subject the Hertz 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 June 30, 2013, we were not subject to such contractually specified fixed charge coverage ratio. | We refer to the Senior Term Facility and the Senior ABL Facility together as the “Senior Credit Facilities.” Hertz's obligations under the Senior Credit Facilities are guaranteed by its immediate parent (Hertz Investors, Inc.) and most of its direct and indirect domestic subsidiaries (subject to certain exceptions, including Hertz International Limited, which ultimately owns entities carrying on most of our international operations, and subsidiaries involved in the HVF U.S. Asset-Backed Securities, or "ABS," Program, the Donlen ABS Program and, the RCFC U.S. ABS Program). In addition, the obligations of the “Canadian borrowers” under the Senior ABL Facility are guaranteed by their respective subsidiaries, subject to certain exceptions. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
The lenders under the Senior Credit Facilities have been granted a security interest in substantially all of the tangible and intangible assets of the borrowers and guarantors under those facilities, including pledges of the stock of certain of their respective domestic subsidiaries (subject, in each case, to certain exceptions, including certain vehicles). Each of the Senior Credit Facilities permits the incurrence of future indebtedness secured on a basis either equal to or subordinated to the liens securing the applicable Senior Credit Facility or on an unsecured basis. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Borrowing Capacity and Availability | We refer to Hertz and its subsidiaries as the Hertz credit group. The Senior Credit Facilities contain a number of covenants that, among other things, limit or restrict the ability of the Hertz credit group to dispose of assets, incur additional indebtedness, incur guarantee obligations, prepay certain indebtedness, make dividends and other restricted payments (including to the parent entities of Hertz and other persons), create liens, make investments, make acquisitions, engage in mergers, change the nature of their business, engage in certain transactions with affiliates that are not within the Hertz credit group or enter into certain restrictive agreements limiting the ability to pledge assets. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Under the Senior ABL Facility, failure to maintain certain levels of liquidity will subject the Hertz 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, 2012, we were not subject to such contractually specified fixed charge coverage ratio. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
As of June 30, 2013, the following facilities were available for the use of Hertz and its subsidiaries (in millions of dollars): | Covenants in the Senior Term Facility restrict payment of cash dividends to any parent of Hertz, including Hertz Holdings, with certain exceptions, including: (i) in an aggregate amount not to exceed 1.0% of the greater of a specified minimum amount and the consolidated tangible assets of the Hertz credit group (which payments are deducted in determining the amount available as described in the next clause (ii)), (ii) in additional amounts up to a specified available amount determined by reference to, among other things, an amount set forth in the Senior Term Facility plus 50% of net income from January 1, 2011 to the end of the most recent fiscal quarter for which financial statements of Hertz are available (less certain investments) and (iii) in additional amounts not to exceed the amount of certain equity contributions made to Hertz. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Covenants in the Senior ABL Facility restrict payment of cash dividends to any parent of Hertz, including Hertz Holdings, except in an aggregate amount, taken together with certain investments, acquisitions and optional prepayments, not to exceed $200 million. Hertz may also pay additional cash dividends under the Senior ABL Facility so long as, among other things, (a) no specified default then exists or would arise as a result of making such dividends, (b) there is at least $200 million of liquidity under the Senior ABL Facility after giving effect to the proposed dividend, and (c) either (i) if such liquidity is less than $400 million immediately after giving effect to the making of such dividends, Hertz is in compliance with a specified fixed charge coverage ratio, or (ii) the amount of the proposed dividend does not exceed the sum of (x) 1.0% of tangible assets plus (y) a specified available amount determined by reference to, among other things, 50% of net income from January 1, 2011 to the end of the most recent fiscal quarter for which financial statements of Hertz are available plus (z) a specified amount of certain equity contributions made to Hertz. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
In November 2012, we amended the Senior ABL Facility to deem letters of credit issued under Dollar Thrifty's now-terminated senior revolving credit facility to have been issued under the Senior ABL Facility. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Remaining | Availability Under | Senior Notes | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Capacity | Borrowing Base | In March 2012, Hertz issued an additional $250.0 million aggregate principal of the 6.75% Senior Notes due 2019. The proceeds of this March 2012 offering were used in March 2012 in part to redeem $162.3 million principal amount of Hertz's outstanding 8.875% Senior Notes due 2014 which resulted in the write-off of unamortized debt costs of $1.2 million recorded in "Interest expense" on our consolidated statement of operations. The remainder of the proceeds of this March 2012 offering, along with cash on hand or drawings under the Senior ABL Facility were used to redeem €213.5 million ($286.0 million) of Hertz's outstanding 7.875% Senior Notes due 2014, which resulted in the write-off of unamortized debt costs of $2.0 million recorded in "Interest expense" on our consolidated statement of operations. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Limitation | In October 2012, HDTFS, Inc., a newly-formed, wholly-owned subsidiary of Hertz issued and sold $700.0 million aggregate principal amount of 5.875% Senior Notes due 2020 and $500.0 million aggregate principal amount of 6.250% Senior Notes due 2022 in a private offering. The gross proceeds of the offering were held in an escrow account until the date of the completion of the acquisition of Dollar Thrifty, at which time the gross proceeds of the offering were released from escrow and HDTFS, Inc. was merged into Hertz. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate Debt | Hertz's obligations under the indentures for the Senior Notes are guaranteed by each of its direct and indirect domestic subsidiaries that is a guarantor under the Senior Term Facility. The guarantees of all of the Subsidiary Guarantors may be released to the extent such subsidiaries no longer guarantee our Senior Credit Facilities in the United States. HERC may also be released from its guarantee under the outstanding Senior Notes at any time at which no event of default under the related indenture has occurred and is continuing, notwithstanding that HERC may remain a subsidiary of Hertz. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior ABL Facility | $ | 357.3 | $ | 357.3 | The indentures for the Senior Notes contain covenants that, among other things, limit or restrict the ability of the Hertz credit group to incur additional indebtedness, incur guarantee obligations, prepay certain indebtedness, make certain restricted payments (including paying dividends, redeeming stock or making other distributions to parent entities of Hertz and other persons outside of the Hertz credit group), make investments, create liens, transfer or sell assets, merge or consolidate, and enter into certain transactions with Hertz's affiliates that are not members of the Hertz credit group. | |||||||||||||||||||||||||||||||||||||||||||||||||
The covenants in the indentures for the Senior Notes also restrict Hertz and other members of the Hertz credit group from redeeming stock or making loans, advances, dividends, distributions or other restricted payments to any entity that is not a member of the Hertz credit group, including Hertz Holdings, subject to certain exceptions. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Corporate Debt | 357.3 | 357.3 | Promissory Notes | |||||||||||||||||||||||||||||||||||||||||||||||||||
References to our “Promissory Notes” relate to our promissory notes issued under three separate indentures prior to the Acquisition. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fleet Debt | FLEET DEBT | |||||||||||||||||||||||||||||||||||||||||||||||||||||
HVF U.S. Fleet Variable Funding Notes | 148.8 | — | The governing documents of certain of the fleet debt financing arrangements specified below contain covenants that, among other things, significantly limit or restrict (or upon certain circumstances may significantly restrict or prohibit) the ability of the borrowers, and the guarantors if applicable, to make certain restricted payments (including paying dividends, redeeming stock, making other distributions, loans or advances) to Hertz Holdings and Hertz, whether directly or indirectly. | |||||||||||||||||||||||||||||||||||||||||||||||||||
RCFC U.S. Fleet Variable Funding Notes | 60 | — | HVF U.S. ABS Program | |||||||||||||||||||||||||||||||||||||||||||||||||||
Donlen GN II Variable Funding Notes | 60 | — | Hertz Vehicle Financing LLC, an insolvency remote, direct, wholly‑owned, special purpose subsidiary of Hertz, or “HVF,” is the issuer under the HVF U.S. ABS Program. HVF has entered into a base indenture that permits it to issue term and revolving rental car asset‑backed securities, the collateral for which consists primarily of a substantial portion of the rental car fleet used in Hertz's (and through fleet sharing arrangements, a portion of the fleet used in Dollar Thrifty's) domestic car rental operations and contractual rights related to such vehicles. | |||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Fleet Financing Facility | 19 | — | References to the “HVF U.S. ABS Program” include HVF's U.S. Fleet Variable Funding Notes together with HVF's U.S. Fleet Medium Term Notes. | |||||||||||||||||||||||||||||||||||||||||||||||||||
European Revolving Credit Facility | 58.5 | — | HVF U.S. Fleet Variable Funding Notes | |||||||||||||||||||||||||||||||||||||||||||||||||||
European Securitization | 157.4 | — | References to the “HVF U.S. Fleet Variable Funding Notes” include HVF's Series 2009-1 Variable Funding Rental Car Asset Backed Notes, as amended, or the “Series 2009-1 Notes,” Series 2010-2 Variable Funding Rental Car Asset Backed Notes, or the “Series 2010-2 Notes,” and Series 2011-2 Variable Funding Rental Car Asset Backed Notes, or the “Series 2011-2 Notes,” collectively. As of December 31, 2012, the only U.S. Fleet Variable Funding Notes committed or outstanding were the Series 2009-1 Notes, which, as of December 31, 2012, permit aggregate maximum borrowings of $2,438.8 million (subject to borrowing base availability) on a revolving basis under an asset‑backed variable funding note facility. | |||||||||||||||||||||||||||||||||||||||||||||||||||
Hertz-Sponsored Canadian Securitization | 85 | — | In April 2012, HVF paid the HVF Series 2011-2 notes in full and terminated the related asset-backed variable funding note facility. | |||||||||||||||||||||||||||||||||||||||||||||||||||
Dollar Thrifty-Sponsored Canadian Securitization | 66.9 | — | In May 2012, HVF amended the HVF Series 2009-1 Notes to permit aggregate maximum borrowings of $2,188.0 million (subject to borrowing base availability). | |||||||||||||||||||||||||||||||||||||||||||||||||||
Australian Securitization | 112.3 | — | In October 2012, HVF amended the HVF Series 2009-1 Notes to permit aggregate maximum borrowings of $2,238.8 million (subject to borrowing base availability) and extend the expected final maturity by one year to March 2014. | |||||||||||||||||||||||||||||||||||||||||||||||||||
In December 2012, HVF paid the HVF Series 2010-2 Notes in full and terminated the related asset-backed variable funding note facility. At the same time, HVF amended the HVF Series 2009-1 Notes to permit aggregate maximum borrowings of $2,438.8 million (subject to borrowing base availability). | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Fleet Debt | 767.9 | — | HVF U.S. Fleet Medium Term Notes | |||||||||||||||||||||||||||||||||||||||||||||||||||
References to the “HVF U.S. Fleet Medium Term Notes” include HVF's Series 2009-2 Notes, Series 2010-1 Notes and Series 2011-1 Notes, collectively. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 1,125.20 | $ | 357.3 | Series 2009-2 Notes: In October 2009, HVF issued the Series 2009-2 Rental Car Asset Back Notes, Class A, or the “HVF Series 2009-2 Class A Notes,” in an aggregate original principal amount of $1.2 billion. In June 2010, HVF issued the Subordinated Series 2009-2 Rental Car Asset Backed Notes, Class B, or the “HVF Series 2009-2 Class B Notes,” and together with the Series 2009-2 Class A, or the “HVF Series 2009-2 Notes,” in an aggregate original principal amount of $184.3 million. | |||||||||||||||||||||||||||||||||||||||||||||||||
Series 2010-1 Notes: In July 2010, HVF issued the Series 2010-1 Rental Car Asset Backed Notes, or the “HVF Series 2010-1 Notes,” in an aggregate original principal amount of $749.8 million. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Series 2011-1 Notes: In June 2011, HVF issued the Series 2011-1 Rental Car Asset Backed Notes, or the “HVF Series 2011-1 Notes,” in an aggregate original principal amount of $598.0 million. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Our borrowing capacity and availability primarily comes from our "revolving credit facilities," which are a combination of asset-backed securitization facilities and asset-based revolving credit facilities. Creditors under each of our revolving credit facilities have a claim on a specific pool of assets as collateral. Our ability to borrow under each revolving credit facility is a function of, among other things, the value of the assets in the relevant collateral pool. We refer to the amount of debt we can borrow given a certain pool of assets as the "borrowing base." | See Note 18—Subsequent Events. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
RCFC U.S. ABS Program | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
We refer to "Remaining Capacity" as the maximum principal amount of debt permitted to be outstanding under the respective facility (i.e., the amount of debt we could borrow assuming we possessed sufficient assets as collateral) less the principal amount of debt then-outstanding under such facility. | Rental Car Finance Corporation, or “RCFC,” became an insolvency remote, indirect, wholly‑owned, special purpose subsidiary of Hertz when Hertz acquired Dollar Thrifty. RCFC is the issuer under the RCFC U.S. ABS Program. RCFC has entered into a base indenture that permits it to issue term and revolving rental car asset-backed securities, the collateral for which consists primarily of a substantial portion of the rental car fleet used in Dollar Thrifty's (and through fleet sharing arrangements, a portion of the fleet used in Hertz's) domestic car rental operations and contractual rights related to such vehicles. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
References to the “RCFC U.S. ABS Program” include RCFC's U.S. Fleet Variable Funding Notes together with RCFC's U.S. Fleet Medium Term Notes. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
We refer to "Availability Under Borrowing Base Limitation" as the lower of Remaining Capacity or the borrowing base less the principal amount of debt then-outstanding under such facility (i.e., the amount of debt we could borrow given the collateral we possess at such time). | RCFC U.S. Fleet Variable Funding Notes | |||||||||||||||||||||||||||||||||||||||||||||||||||||
References to the “RCFC U.S. Fleet Variable Funding Notes” are to the RCFC Series 2010-3 Variable Funding Rental Car Asset Backed Notes, as amended, or the “RCFC Series 2010-3 Notes,” which, as of December 31, 2012, permit aggregate maximum borrowings of $600.0 million (subject to borrowing base availability) on a revolving basis under an asset-backed variable funding note facility. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
As of June 30, 2013, the Senior Term Facility had approximately $0.1 million available under the letter of credit facility and the Senior ABL Facility had $1,006.5 million available under the letter of credit facility sublimit, subject to borrowing base restrictions. | RCFC U.S. Fleet Medium Term Notes | |||||||||||||||||||||||||||||||||||||||||||||||||||||
References to the “RCFC U.S. Fleet Medium Term Notes” include RCFC's Series 2011-1 Notes and RCFC's Series 2011-2 Notes, collectively. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Substantially all of our revenue earning equipment and certain related assets are owned by special purpose entities, or are encumbered in favor of our lenders under our various credit facilities. | Series 2011-1 Notes: In July 2011, RCFC issued the Series 2011-1 Rental Car Asset Backed Notes, or the “RCFC Series 2011-1 Notes,” in an aggregate original principal amount of $500.0 million. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Series 2011-2 Notes: In October 2011, RCFC issued the Series 2011-2 Rental Car Asset Backed Notes, or the “RCFC Series 2011-2 Notes,” in an aggregate original principal amount of $400.0 million. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Some of these special purpose entities are consolidated variable interest entities, of which Hertz is the primary beneficiary, whose sole purpose is to provide commitments to lend in various currencies subject to borrowing bases comprised of rental vehicles and related assets of certain of Hertz International, Ltd.'s subsidiaries. As of June 30, 2013 and December 31, 2012, our International Fleet Financing No. 1 B.V., International Fleet Financing No. 2 B.V. and HA Funding Pty, Ltd. variable interest entities collectively had total assets primarily comprised of loans receivable and revenue earning equipment of $579.3 million and $440.8 million, respectively, and collectively had total liabilities primarily comprised of debt of $578.8 million and $440.3 million, respectively. | Donlen ABS Program | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Donlen GN II Variable Funding Notes | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
On September 1, 2011, in connection with our acquisition of Donlen, Donlen's GN II Variable Funding Notes, or the "GN II VFN," remained outstanding and lender commitments thereunder were increased to permit aggregate maximum borrowings of $850.0 million (subject to borrowing base availability). | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
In February 2012, Hertz's indirect, wholly-owned subsidiary GN Funding II L.L.C., or “GN II,” amended the GN II VFN to permit aggregate maximum borrowings of $900.0 million (subject to borrowing base availability). | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
In July 2012, GN II amended the GN II VFN to extend the expected maturity to December 2012 and to permit aggregate maximum borrowings of $1,000.0 million (subject to borrowing base availability). | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
In October 2012, GN II amended the GN II VFN to extend the expected final maturity to December 2013. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fleet Debt-Other | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Fleet Financing Facility | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
In September 2006, Hertz and Puerto Ricancars, Inc., a Puerto Rican corporation and wholly‑owned indirect subsidiary of Hertz, or “PR Cars,” entered into a credit agreement that provides for aggregate maximum borrowings of $165.0 million (subject to borrowing base availability) on a revolving basis under an asset‑based revolving credit facility, or the “U.S. Fleet Financing Facility.” The U.S. Fleet Financing Facility is the primary fleet financing for our car rental operations in Hawaii, Kansas, Puerto Rico and the U.S. Virgin Islands. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
The obligations of each of Hertz and PR Cars under the U.S. Fleet Financing Facility are guaranteed by certain of Hertz's direct and indirect domestic subsidiaries. In addition, the obligations of PR Cars under the U.S. Fleet Financing Facility are guaranteed by Hertz. The lenders under the U.S. Fleet Financing Facility have been granted a security interest primarily in the owned rental car fleet used in our car rental operations in Hawaii, Puerto Rico and the U.S. Virgin Islands and certain contractual rights related to rental vehicles in Kansas, Hawaii, Puerto Rico and the U.S. Virgin Islands. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
In September 2011, we extended the maturity of our U.S. Fleet Financing Facility to September 2015 and increased the facility size to $190.0 million. In connection with the extension, we made a number of modifications to the financing arrangement including decreasing the advance rate and increasing pricing. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
European Revolving Credit Facility and European Fleet Notes | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
In June 2010, Hertz Holdings Netherlands B.V., an indirect wholly‑owned subsidiary of Hertz organized under the laws of The Netherlands, or “HHN BV,” entered into a credit agreement that provides for aggregate maximum borrowings of €220.0 million (the equivalent of $291.2 million as of December 31, 2012) (subject to borrowing base availability) on a revolving basis under an asset‑based revolving credit facility, or the “European Revolving Credit Facility,” and issued the 8.50% Senior Secured Notes due July 2015, or the “European Fleet Notes,” in an aggregate original principal amount of €400.0 million (the equivalent of $529.4 million as of December 31, 2012). References to the “European Fleet Debt” include HHN BV's European Revolving Credit Facility and the European Fleet Notes, collectively. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
The European Fleet Debt is the primary fleet financing for our car rental operations in Germany, Italy, Spain, Belgium, New Zealand and Luxembourg, and can be expanded to provide fleet financing in Australia, Canada, France, The Netherlands, Switzerland, and the United Kingdom. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
The obligations of HHN BV under the European Fleet Debt are guaranteed by Hertz and certain of Hertz's domestic and foreign subsidiaries. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
The agreements governing the European Revolving Credit Facility and the indenture governing the European Fleet Notes contain covenants that apply to the Hertz credit group similar to those for the Senior Notes. In addition, the agreements and indenture contain a combination of security arrangements, springing covenants and “no liens” covenants intended to give the lenders under the European Fleet Debt enhanced recourse to certain assets of HHN BV and certain foreign subsidiaries of Hertz. The terms of the European Fleet Debt permit HHN BV to incur additional indebtedness that would be pari passu with either the European Revolving Credit Facility or the European Fleet Notes. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
In June 2012, HHN BV amended the European Revolving Credit Facility to extend the maturity date from June 2013 to June 2015. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
European Securitization | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
In July 2010, certain foreign subsidiaries entered into a facility agreement that provides for aggregate maximum borrowings of €400.0 million (the equivalent of $529.4 million as of December 31, 2012) (subject to borrowing base availability) on a revolving basis under an asset‑backed securitization facility, or the “European Securitization.” The European Securitization is the primary fleet financing for our car rental operations in France and The Netherlands. The lenders under the European Securitization have been granted a security interest primarily in the owned rental car fleet used in our car rental operations in France and The Netherlands and certain contractual rights related to such vehicles. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
In August 2011, certain foreign subsidiaries extended the expected maturity of our European Securitization Facility to July 2013. In connection with the extension, International Fleet Financing No. 2 B.V. made a number of modifications to the financing arrangement including increasing the advance rate and decreasing pricing. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
In July 2012, International Fleet Financing No. 2 B.V. amended the European Securitization to extend the maturity from July 2013 to July 2014. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Hertz-Sponsored Canadian Securitization | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
In May 2007, certain foreign subsidiaries entered into a facility agreement that provides for aggregate maximum borrowings of CAD$225.0 million (the equivalent of $226.1 million as of December 31, 2012) (subject to borrowing base availability) on a revolving basis under an asset‑backed securitization facility, or as amended, the “Canadian Securitization.” The Canadian Securitization is the primary fleet financing for our car rental operations in Canada. The lender under the Canadian Securitization has been granted an indirect security interest primarily in the owned rental car fleet used in our car rental operations in Canada and certain contractual rights related to such vehicles as well as certain other assets owned by entities connected to the financing. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
In November 2011, Hertz's indirect wholly owned subsidiary HC Limited Partnership extended the maturity of the Canadian Securitization to January 2012 and reduced the facility size to CAD$200.0 million (equivalent to $201.0 million as of December 31, 2012). In connection with the extension, HC Limited Partnership made a number of modifications to the financing arrangement including decreasing the pricing. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
In January 2012, HC Limited Partnership amended the Canadian Securitization to extend the maturity date from January 2012 to March 2012. In March 2012, HC Limited Partnership amended the Canadian Securitization to extend the maturity date from March 2012 to May 2012. In the second quarter of 2012, the maturity date was extended to June 2013. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dollar Thrifty-Sponsored Canadian Securitization | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
In March 2012 certain foreign subsidiaries of Dollar Thrifty entered into a trust indenture that permits the issuance of term and revolving rental car asset-backed securities, the collateral for which consists primarily of the rental car fleet used in Dollar Thrifty’s Canadian car rental operations and contractual rights related to such vehicles. These subsidiaries became indirect wholly-owned subsidiaries of Hertz when Hertz acquired Dollar Thrifty. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
In March 2012 these subsidiaries issued asset-backed variable funding notes that provide for aggregate maximum borrowings of CAD$150.0 million (the equivalent of $150.7 million as of December 31, 2012) (subject to borrowing base availability) on a revolving basis, or the “Dollar Thrifty-Sponsored Canadian Securitization.” The expected final maturity of the Dollar Thrifty-Sponsored Canadian Securitization is August 2014. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Australian Securitization | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
In November 2010, certain foreign subsidiaries entered into a facility agreement that provides for aggregate maximum borrowings of A$250.0 million (the equivalent of $259.4 million as of December 31, 2012) (subject to borrowing base availability) on a revolving basis under an asset‑backed securitization facility, or the “Australian Securitization.” The Australian Securitization is the primary fleet financing for Hertz's car rental operations in Australia. The lender under the Australian Securitization has been granted a security interest primarily in the owned rental car fleet used in our car rental operations in Australia and certain contractual rights related to such vehicles. In connection with the issuance of the Australian Securitization, an interest rate cap was purchased by a subsidiary, HA Fleet Pty Limited. Concurrently, Hertz sold an offsetting interest rate cap, thereby neutralizing the hedge on a consolidated basis and reducing the net cost of the hedge. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
In October 2012, Hertz's indirect, wholly-owned subsidiary HA Fleet Pty Limited amended the Australian Securitization to extend the expected maturity date thereunder to December 2014 in connection with this transaction both HA Fleet Pty Limited and Hertz amended the existing interest rate caps, modifying and extending the amortization schedule to the new maturity date of the securitization. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
See Note 14—Financial Instruments. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Brazilian Fleet Financing Facility | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
As of December 31, 2012, our Brazilian operating subsidiary is party to certain local financing arrangements, which are collateralized by certain of its assets, which we refer to as the "Brazilian Fleet Financing Facility." | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
In June 2012, Hertz caused its Brazilian operating subsidiary to amend the Brazilian Fleet Financing Facility to extend the maturity date from June 2012 to February 2013. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
See Note 18—Subsequent Events. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capitalized Leases | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
References to the “Capitalized Leases” include the capitalized lease financings outstanding in the United Kingdom, or the “U.K. Leveraged Financing,” Australia, The Netherlands and the United States. The amount available under the U.K. Leveraged Financing, which is the largest portion of the Capitalized Leases, as of December 31, 2012 was £195 million (the equivalent of $314.0 million as of December 31, 2012). | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted Net Assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
As a result of the contractual restrictions on Hertz's or its subsidiaries' ability to pay dividends (directly or indirectly) under various terms of our debt, as of December 31, 2012, the restricted net assets of our subsidiaries exceeded 25% of our total consolidated net assets. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Registration Rights | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Hertz entered into exchange and registration rights agreements entered into in connection with (i) the issuance of $250 million in aggregate principal amount of the 6.75% Senior Notes due 2019 in March 2012, and (ii) the release from escrow of the proceeds of $700 million aggregate principal amount of 5.875% Senior Notes due 2020 and $500 million aggregate principal amount of 6.250% Senior Notes due 2022. Pursuant to the terms of these agreements, Hertz agreed to file a registration statement under the Securities Act of 1933, as amended, to permit either the exchange of such notes for registered notes or, in the alternative, the registered resale of such notes. Hertz's failure to meet its obligations under either exchange and registration rights agreement, including by failing to have the registration statement become effective by the date that is 365 days after the respective date of the exchange and registration rights agreement or failing to complete the exchange offer by the date that is 395 days after the date of the exchange and registration rights agreement, will result in Hertz incurring special interest on such notes at a per annum rate of 0.25% for the first 90 days of any period where a default has occurred and is continuing, which rate will be increased by an additional 0.25% during each subsequent 90 day period, up to a maximum of 0.50%. A registration statement on Form S-4 covering the exchange of such notes was declared effective by the SEC on February 1, 2013 and the exchange offer is scheduled to be completed on March 6, 2013, so we do not believe the special interest obligation is probable, and as such, we have not recorded any amounts for special interest with respect to these notes. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Covenant Compliance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Under the terms of our Senior Term Facility and Senior ABL Facility, we are not subject to ongoing financial maintenance covenants; however, under the Senior ABL Facility, failure to maintain certain levels of liquidity will subject the Hertz 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, 2012, we were not subject to such contractually specified fixed charge coverage ratio. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Borrowing Capacity and Availability | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
As of December 31, 2012, the following facilities were available for the use of Hertz and its subsidiaries (in millions of dollars): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Remaining | Availability Under | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Capacity | Borrowing Base | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Limitation | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate Debt | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior ABL Facility | $ | 1,183.70 | $ | 1,146.00 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total Corporate Debt | 1,183.70 | 1,146.00 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Fleet Debt | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
HVF U.S. Fleet Variable Funding Notes | 88.8 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
RCFC U.S. Fleet Variable Funding Notes | 81 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Donlen GN II Variable Funding Notes | 105 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Fleet Financing Facility | 24 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
European Revolving Credit Facility | 105.9 | 7.9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
European Securitization | 287.2 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Hertz-Sponsored Canadian Securitization | 100.5 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Dollar Thrifty-Sponsored Canadian Securitization | 95.5 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Australian Securitization | 110.5 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Capitalized Leases | 85.1 | 27.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Fleet Debt | 1,083.50 | 35.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 2,267.20 | $ | 1,181.40 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Our borrowing capacity and availability primarily comes from our "revolving credit facilities," which are a combination of asset-backed securitization facilities and asset-based revolving credit facilities. Creditors under each of our revolving credit facilities have a claim on a specific pool of assets as collateral. Our ability to borrow under each revolving credit facility is a function of, among other things, the value of the assets in the relevant collateral pool. We refer to the amount of debt we can borrow given a certain pool of assets as the "borrowing base." | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
We refer to "Remaining Capacity" as the maximum principal amount of debt permitted to be outstanding under the respective facility (i.e., the amount of debt we could borrow assuming we possessed sufficient assets as collateral) less the principal amount of debt then-outstanding under such facility. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
We refer to "Availability Under Borrowing Base Limitation" as the lower of Remaining Capacity or the borrowing base less the principal amount of debt then-outstanding under such facility (i.e., the amount of debt we could borrow given the collateral we possess at such time). | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
As of December 31, 2012, the Senior Term Facility had approximately $8.0 million available under the letter of credit facility and the Senior ABL Facility had $1,010.4 million available under the letter of credit facility sublimit, subject to borrowing base restrictions. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Substantially all of our revenue earning equipment and certain related assets are owned by special purpose entities, or are encumbered in favor of our lenders under our various credit facilities. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Some of these special purpose entities are consolidated variable interest entities, of which we are the primary beneficiary, whose sole purpose is to provide commitments to lend in various currencies subject to borrowing bases comprised of rental vehicles and related assets of certain of Hertz International, Ltd.'s subsidiaries. As of December 31, 2012 and December 31, 2011, our International Fleet Financing No. 1 B.V., International Fleet Financing No. 2 B.V. and HA Funding Pty, Ltd. variable interest entities had total assets primarily comprised of loans receivable and revenue earning equipment of $440.8 million and $456.3 million, respectively, and total liabilities primarily comprised of debt of $440.3 million and $455.8 million, respectively. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Interest | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
As of December 31, 2012 and 2011, accrued interest was $86.4 million and $85.7 million, respectively, which is reflected in our consolidated balance sheet in “Other accrued liabilities.” | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
For subsequent events relating to our indebtedness, see Note 18—Subsequent Events. |
DERIVATIVE_FINANCIAL_INSTRUMEN
DERIVATIVE FINANCIAL INSTRUMENTS - DOLLAR THRIFTY (Dollar Thrifty Automotive Group Inc) | 9 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||
Sep. 30, 2012 | Dec. 31, 2011 | |||||||||||||||||||||||||||||||||||||||||||
Dollar Thrifty Automotive Group Inc | ||||||||||||||||||||||||||||||||||||||||||||
DERIVATIVE FINANCIAL INSTRUMENTS | 8. DERIVATIVE FINANCIAL INSTRUMENTS | 9. DERIVATIVE FINANCIAL INSTRUMENTS | ||||||||||||||||||||||||||||||||||||||||||
The Company is exposed to market risks, such as changes in interest rates, and has historically entered into interest rate swap and cap agreements to manage that risk. Additionally, some of the Company's debt facilities require interest rate cap agreements in order to limit the Company's exposure to increases in interest rates. The Company used interest rate swap agreements for asset-backed medium-term note issuances in 2007 to effectively convert variable interest rates to fixed interest rates; however, in late 2011, the Company terminated its 2007 swap agreements and paid a termination fee of $8.8 million to settle the outstanding liability. The remaining unamortized value of the hedge deferred in accumulated other comprehensive income (loss) on the balance sheet was reclassified into earnings as interest expense through July 2012. During the three and nine months ended September 30, 2012, $0.4 million and $8.5 million, respectively, were reclassified into earnings as interest expense. The Company has also used interest rate cap agreements for its Series 2010-3 VFN, to effectively limit the variable interest rate on a total of $600 million in asset-backed VFNs. These cap agreements have a termination date of July 2014. There were no derivatives designated as hedging instruments at September 30, 2012 or December 31, 2011. | The Company is exposed to market risks, such as changes in interest rates, and has entered into interest rate swap and cap agreements to manage that risk. Additionally, some of the Company's debt facilities require interest rate cap agreements in order to limit the Company's exposure to increases in interest rates. Consequently, the Company manages the financial exposure as part of its risk management program by striving to reduce the potentially adverse effects that the volatility of the financial markets may have on the Company's operating results. The Company used interest rate swap agreements for asset-backed medium-term note issuances in 2007, to effectively convert variable interest rates on a total of $500 million in asset-backed medium-term notes to fixed interest rates. On December 28, 2011, the Company terminated its 2007 swap agreements and paid a termination fee of $8.8 million to settle the outstanding liability, which is disclosed in cash flows from financing activities in the Consolidated Statements of Cash Flows. The remaining unamortized value of the hedge in accumulated other comprehensive income (loss) on the balance sheet will be reclassified into earnings as interest expense over the remaining term of the related debt through July 2012. The Company has also used interest rate cap agreements for its 2010-3 VFN, to effectively limit the variable interest rate on a total of $600 million in asset-backed VFNs. This cap has a termination date of July 2014. The Series 2010-1 VFN and Series 2010-2 VFN interest rate cap agreements were terminated in December 2011 following the termination of the related debt facilities. | |||||||||||||||||||||||||||||||||||||||||||
The fair value of derivatives outstanding at September 30, 2012 and December 31, 2011 are as follows (in thousands): | The fair value of derivatives outstanding for the years ended December 31, 2011 and 2010 are as follows (in thousands): | |||||||||||||||||||||||||||||||||||||||||||
Fair Value of Derivative Instruments | Fair Values of Derivative Instruments | |||||||||||||||||||||||||||||||||||||||||||
Asset Derivatives | Liability Derivatives | Asset Derivatives | Liability Derivatives | |||||||||||||||||||||||||||||||||||||||||
September 30, 2012 | December 31, 2011 | September 30, 2012 | December 31, 2011 | December 31, 2011 | December 31, 2010 | December 31, 2011 | December 31, 2010 | |||||||||||||||||||||||||||||||||||||
Balance Sheet | Fair | Balance Sheet | Fair | Balance Sheet | Fair | Balance Sheet | Fair | Balance | Fair | Balance | Fair | Balance | Fair | Balance | Fair | |||||||||||||||||||||||||||||
Location | Value | Location | Value | Location | Value | Location | Value | Sheet | Value | Sheet | Value | Sheet | Value | Sheet | Value | |||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments | Prepaid expenses | Prepaid expenses | Accrued | Accrued | Location | Location | Location | Location | ||||||||||||||||||||||||||||||||||||
and other assets | and other assets | liabilities | liabilities | Derivatives designated as hedging instruments | ||||||||||||||||||||||||||||||||||||||||
Interest rate contracts | $ | 23 | $ | 548 | $ | — | $ | — | Interest rate contracts | Prepaid expenses and other assets | $ | — | Prepaid expenses and other assets | $ | 861 | Accrued liabilities | $ | — | Accrued liabilities | $ | 31,254 | |||||||||||||||||||||||
Derivatives not designated as hedging instruments | ||||||||||||||||||||||||||||||||||||||||||||
The (gain) loss recognized on interest rate swap and cap agreements that do not qualify for hedge accounting treatment and thus are not designated as hedging instruments for the three and nine months ended September 30, 2012 and 2011 are as follows (in thousands): | Interest rate contracts | Prepaid expenses and other assets | $ | 548 | Prepaid expenses and other assets | $ | 494 | Accrued liabilities | $ | — | Accrued liabilities | $ | 5,634 | |||||||||||||||||||||||||||||||
Total derivatives | $ | 548 | $ | 1,355 | $ | — | $ | 36,888 | ||||||||||||||||||||||||||||||||||||
Amount of (Gain) or Loss Recognized | ||||||||||||||||||||||||||||||||||||||||||||
in Income on Derivative | ||||||||||||||||||||||||||||||||||||||||||||
Three Months | Nine Months | The interest rate swap agreements related to the Series 2006-1 notes and the interest rate cap agreements related to the Series 2010-1 VFN, the Series 2010-2 VFN and the Series 2010-3 VFN do not qualify for hedge accounting treatment. The (gain) loss recognized in income on derivatives not designated as hedging instruments for the years ended December 31, 2011 and 2010 are as follows (in thousands): | ||||||||||||||||||||||||||||||||||||||||||
Ended | Ended | |||||||||||||||||||||||||||||||||||||||||||
Derivatives Not | September 30, | September 30, | Location of (Gain) or Loss | |||||||||||||||||||||||||||||||||||||||||
Designated as Hedging | Recognized in Income on | Amount of (Gain) | Location of (Gain) or Loss | |||||||||||||||||||||||||||||||||||||||||
Instruments | 2012 | 2011 | 2012 | 2011 | Derivative | or Loss Recognized | Recognized in Income on Derivative | |||||||||||||||||||||||||||||||||||||
Interest rate contracts | $ | 40 | $ | 523 | $ | 525 | $ | (3,367 | ) | Net (increase) decrease in | in Income on | |||||||||||||||||||||||||||||||||
fair value of derivatives | Derivative | |||||||||||||||||||||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||
Derivatives Not Designated as | 2011 | 2010 | ||||||||||||||||||||||||||||||||||||||||||
The amount of gain (loss), net of tax and reclassification, recognized on the terminated hedging instruments in other comprehensive income (loss) ("OCI") and the amount of the gain (loss) reclassified from Accumulated OCI ("AOCI") into income for the three and nine months ended September 30, 2012 and 2011 are as follows (in thousands): | Hedging Instruments | |||||||||||||||||||||||||||||||||||||||||||
Interest rate contracts | $ | (3,244 | ) | $ | (28,694 | ) | Net (increase) decrease in | |||||||||||||||||||||||||||||||||||||
fair value of derivatives | ||||||||||||||||||||||||||||||||||||||||||||
Amount of Gain | ||||||||||||||||||||||||||||||||||||||||||||
or (Loss) | Total | $ | (3,244 | ) | $ | (28,694 | ) | |||||||||||||||||||||||||||||||||||||
Recognized in | ||||||||||||||||||||||||||||||||||||||||||||
OCI on | ||||||||||||||||||||||||||||||||||||||||||||
Derivative | The interest rate swap agreement entered into in May 2007 related to the Series 2007-1 notes ("2007 Swap") constituted a cash flow hedge and satisfied the criteria for hedge accounting under the "long-haul" method. | |||||||||||||||||||||||||||||||||||||||||||
(Effective | Amount of Gain or | |||||||||||||||||||||||||||||||||||||||||||
Portion) | (Loss) Reclassified | The amount of gain (loss), net of tax and reclassification, recognized on the derivative in other comprehensive income (loss) ("OCI") and the amount of the gain (loss) reclassified from Accumulated OCI ("AOCI") into income (loss) for the years ended December 31, 2011 and 2010 are as follows (in thousands): | ||||||||||||||||||||||||||||||||||||||||||
from AOCI into | ||||||||||||||||||||||||||||||||||||||||||||
Income (Effective | ||||||||||||||||||||||||||||||||||||||||||||
Portion) | Location of (Gain) or | Derivatives in Cash Flow Hedging Relationships | 2011 | 2010 | 2011 | 2010 | ||||||||||||||||||||||||||||||||||||||
Loss Reclassified from | ||||||||||||||||||||||||||||||||||||||||||||
AOCI in Income | Amount of Gain or | Amount of Gain or | ||||||||||||||||||||||||||||||||||||||||||
Derivatives in Cash Flow Hedging Relationships | 2012 | 2011 | 2012 | 2011 | (Effective Portion) | (Loss) Recognized in | (Loss) Reclassified | Location of (Gain) or Loss | ||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, | OCI on Derivative | from AOCI into Income | Reclassified from AOCI in | |||||||||||||||||||||||||||||||||||||||||
Interest rate contracts | $ | — | $ | 3,591 | $ | (207 | ) | $ | (3,572 | ) | Interest expense, net | (Effective Portion) | (Effective Portion) | Income (Effective Portion) | ||||||||||||||||||||||||||||||
of interest income | Years Ended December 31, | Interest expense, net of interest income | ||||||||||||||||||||||||||||||||||||||||||
Interest rate contracts | $ | 10,259 | $ | 5,543 | $ | (14,229 | ) | $ | (14,069 | ) | ||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||
Interest rate contracts | $ | — | $ | 10,288 | $ | (4,939 | ) | $ | (10,654 | ) | Interest expense, net | Total | $ | 10,259 | $ | 5,543 | $ | (14,229 | ) | $ | (14,069 | ) | ||||||||||||||||||||||
of interest income | ||||||||||||||||||||||||||||||||||||||||||||
At December 31, 2011, the Company no longer has an interest rate contract related to the 2007 Swap due to its early termination on December 28, 2011, and no ineffectiveness was recorded in income during 2011. Additionally, $0.4 million, net of tax, was reclassified from AOCI related to the discontinuance of a cash flow hedge during 2011. | ||||||||||||||||||||||||||||||||||||||||||||
Additionally, $0.4 million, net of tax, was reclassified from AOCI related to the discontinuance of a cash flow hedge during the nine months ended September 30, 2011. | ||||||||||||||||||||||||||||||||||||||||||||
FAIR_VALUE_MEASUREMENTS_DOLLAR
FAIR VALUE MEASUREMENTS - DOLLAR THRIFTY (Dollar Thrifty Automotive Group Inc) | 9 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||
Sep. 30, 2012 | Dec. 31, 2011 | ||||||||||||||||||||||||||||||
Dollar Thrifty Automotive Group Inc | |||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS | 9. FAIR VALUE MEASUREMENTS | 10. FAIR VALUE MEASUREMENTS | |||||||||||||||||||||||||||||
Financial instruments are presented at fair value in the Company's balance sheets. 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 at the measurement date. Assets and liabilities recorded at fair value in the balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair values. These categories include (in descending order of priority): Level 1, defined as observable inputs for identical instruments such as quoted prices in active markets; Level 2, defined as inputs, other than quoted prices in active markets, that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. | Financial instruments are presented at fair value in the Company's balance sheets. Fair value is defined as the price which would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Assets and liabilities recorded at fair value in the balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair values. These categories include (in descending order of priority): Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. | ||||||||||||||||||||||||||||||
The following tables show assets and liabilities measured at fair value on a recurring basis as of September 30, 2012 and December 31, 2011 on the Company's balance sheet, and the input categories associated with those assets and liabilities: | The following tables show assets and liabilities measured at fair value on a recurring basis as of December 31, 2011 and 2010 on the Company's balance sheet, and the input categories associated with those assets and liabilities: | ||||||||||||||||||||||||||||||
Fair Value Measurements at Reporting Date Using | Fair Value Measurements at Reporting Date Using | ||||||||||||||||||||||||||||||
Description | Total Fair | Quoted Prices | Significant Other | Significant | Description | Total Fair | Quoted Prices in | Significant Other | Significant | ||||||||||||||||||||||
Value Assets | in Active | Observable | Unobservable | Value Assets | Active Markets for | Observable | Unobservable | ||||||||||||||||||||||||
(Liabilities) | Markets for | Inputs | Inputs | (Liabilities) | Identical Assets | Inputs | Inputs | ||||||||||||||||||||||||
at 9/30/12 | Identical | (Level 2) | (Level 3) | at 12/31/11 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||||||||
Assets | (in thousands) | ||||||||||||||||||||||||||||||
(Level 1) | Derivative Assets | $ | 548 | $ | — | $ | 548 | $ | — | ||||||||||||||||||||||
(in thousands) | Deferred Compensation Plan Assets(a) | 5,752 | 5,752 | — | — | ||||||||||||||||||||||||||
Derivative Assets | $ | 23 | $ | — | $ | 23 | $ | — | |||||||||||||||||||||||
Deferred Compensation Plan Assets(a) | 6,998 | 6,998 | — | — | Total | $ | 6,300 | $ | 5,752 | $ | 548 | $ | — | ||||||||||||||||||
Total | $ | 7,021 | $ | 6,998 | $ | 23 | $ | — | |||||||||||||||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||||||||||||||||
Description | Total Fair | Quoted Prices in | Significant Other | Significant | |||||||||||||||||||||||||||
Fair Value Measurements at Reporting Date Using | Value Assets | Active Markets for | Observable | Unobservable | |||||||||||||||||||||||||||
Description | Total Fair | Quoted Prices | Significant Other | Significant | (Liabilities) | Identical Assets | Inputs | Inputs | |||||||||||||||||||||||
Value Assets | in Active | Observable | Unobservable | at 12/31/10 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||||||||
(Liabilities) | Markets for | Inputs | Inputs | (in thousands) | |||||||||||||||||||||||||||
at 12/31/11 | Identical | (Level 2) | (Level 3) | Derivative Assets | $ | 1,355 | $ | — | $ | 1,355 | $ | — | |||||||||||||||||||
Assets | Derivative Liabilities | (36,888 | ) | — | (36,888 | ) | — | ||||||||||||||||||||||||
(Level 1) | Marketable Securities (available for sale) | 169 | 169 | — | — | ||||||||||||||||||||||||||
(in thousands) | Deferred Compensation Plan Assets(a) | 3,916 | — | 3,916 | — | ||||||||||||||||||||||||||
Derivative Assets | $ | 548 | $ | — | $ | 548 | $ | — | |||||||||||||||||||||||
Deferred Compensation Plan Assets(a) | 5,752 | 5,752 | — | — | Total | $ | (31,448 | ) | $ | 169 | $ | (31,617 | ) | $ | — | ||||||||||||||||
Total | $ | 6,300 | $ | 5,752 | $ | 548 | $ | — | |||||||||||||||||||||||
(a) | |||||||||||||||||||||||||||||||
Deferred Compensation Plan Assets consist primarily of equity securities. The Company also has an offsetting liability related to the Deferred Compensation Plan, which is not disclosed in the table as it is not independently measured at fair value, but rather is set to equal fair value of the assets held in the related rabbi trust. | |||||||||||||||||||||||||||||||
(a) | |||||||||||||||||||||||||||||||
Deferred Compensation Plan Assets consist primarily of equity securities. The Company also has an offsetting liability related to the Deferred Compensation Plan, which is not disclosed in the table as it is not independently measured at fair value, but rather is set to equal fair value of the assets held in the related rabbi trust. | The fair value of derivative assets and liabilities, consisting primarily of interest rate swaps and caps as discussed above, is calculated using proprietary models utilizing observable inputs, as well as future assumptions related to interest rates, credit risk and other variables. These calculations are performed by the financial institutions that are counterparties to the applicable swap and cap agreements and reported to the Company on a monthly basis. The Company uses these reported fair values to adjust the asset or liability as appropriate. The Company evaluates the reasonableness of the calculations by comparing similar calculations from other counterparties for the applicable period and performs back-testing through use of the look back approach to evaluate the fair value provided by the financial institutions. Deferred compensation plan assets consist of publicly traded securities and are valued in accordance with market quotations. The Company had no Level 3 financial instruments at any time during the years ended December 31, 2011 and 2010. | ||||||||||||||||||||||||||||||
The fair value of derivative assets, consisting of interest rate caps as discussed above, is calculated using proprietary models utilizing observable inputs, as well as future assumptions related to interest rates, credit risk and other variables. These calculations are performed by the financial institutions that are counterparties to the applicable cap agreements and reported to the Company on a monthly basis. The Company uses these reported fair values to adjust the asset as appropriate. The Company evaluates the reasonableness of the calculations by comparing similar calculations from other counterparties for the applicable period and performs back-testing through use of the look back approach to evaluate the fair value provided by the financial institutions. Deferred compensation plan assets consist of publicly traded securities and are valued in accordance with market quotations. There were no transfers into or out of Level 1 or Level 2 measurements for the nine months ended September 30, 2012 or the 12 months ended December 31, 2011. The Company's policy is to recognize transfers between levels as of the beginning of the period in which the event or change in circumstances triggering the transfer occurs. The Company had no Level 3 financial instruments at any time during the nine months ended September 30, 2012 or the 12 months ended December 31, 2011. | The following estimated fair values of financial instruments have been determined by the Company using available market information and valuation methodologies. | ||||||||||||||||||||||||||||||
The following estimated fair values of financial instruments have been determined by the Company using available market information and valuation methodologies described below. | Cash and Cash Equivalents, Cash and Cash Equivalents—Required Minimum Balance, Restricted Cash and Investments, Receivables, Accounts Payable, Accrued Liabilities and Vehicle Insurance Reserves—The carrying amounts of these items are a reasonable estimate of their fair value. The Company maintains its cash and cash equivalents in accounts that may not be federally insured. The Company has not experienced any losses in such accounts and believes it is not exposed to significant credit risk. | ||||||||||||||||||||||||||||||
Cash and Cash Equivalents and Restricted Cash and Investments—Cash and cash equivalents and restricted cash and investments consist of short-term, highly liquid investments with original maturities of three months or less when purchased and are comprised primarily of bank deposits, commercial paper and money market funds. The carrying amounts of these items are a reasonable estimate of their fair value due to the short-term nature of these instruments. The Company maintains its cash and cash equivalents in accounts that may not be federally insured. | Letters of Credit and Surety Bonds—The letters of credit and surety bonds of $203.1 million and $47.4 million, respectively, have no fair value as they support the Company's corporate operations and are not anticipated to be drawn upon. | ||||||||||||||||||||||||||||||
Receivables and Accounts Payable—The carrying amounts of these items are a reasonable estimate of their fair value. The Company has not experienced any material losses in such accounts and believes it is not exposed to significant credit risk. | Debt and Other Obligations—The fair values of the asset-backed medium-term notes were developed using a valuation model that utilizes current market and industry conditions, assumptions related to the financial insurers providing financial guaranty policies on those notes and the limited market liquidity for such notes. Additionally, the fair value of the Term Loan was similarly developed using a valuation model and current market conditions. | ||||||||||||||||||||||||||||||
Debt and Other Obligations—The fair values of the debt traded on the secondary markets were developed utilizing a market approach based on observable inputs from similar debt arrangements and from information regarding the trading of the Company's debt in non-active secondary markets and, thus, the debt is classified as Level 2 in the fair value hierarchy. The Company's other debt is not traded, including floating rate debt for which the carrying amounts are a reasonable estimate of the fair value, as well as fixed rate debt for which the fair values were estimated utilizing an income approach based on discount rates derived from other comparable issuances that include certain unobservable inputs. The non-traded debt is classified as Level 3 in the fair value hierarchy. A portion of the Company's debt is denominated in Canadian dollars, and its carrying value is impacted by exchange rate fluctuations. However, this foreign currency risk is mitigated by the underlying collateral, which is the Company's Canadian fleet. | The following tables provide information about the Company's market sensitive financial instruments valued at December 31, 2011 and 2010: | ||||||||||||||||||||||||||||||
The following tables provide information about the Company's market sensitive financial instruments valued at September 30, 2012 and December 31, 2011: | |||||||||||||||||||||||||||||||
Debt and other obligations at December 31, 2011 | Carrying | Fair Value | |||||||||||||||||||||||||||||
Value | at 12/31/11 | ||||||||||||||||||||||||||||||
Fair Value Measurements at Reporting Date Using | (in thousands) | ||||||||||||||||||||||||||||||
Description | Carrying | Fair Value | Quoted Prices | Significant | Significant | Debt: | |||||||||||||||||||||||||
Value Assets | Assets | in Active Markets | Other | Unobservable | Vehicle debt and obligations—floating rates | $ | 500,000 | $ | 495,820 | ||||||||||||||||||||||
(Liabilities) | (Liabilities) | for Identical Assets | Observable | Inputs | Vehicle debt and obligations—fixed rates | $ | 900,000 | $ | 899,292 | ||||||||||||||||||||||
at 9/30/12 | at 9/30/12 | (Level 1) | Inputs | (Level 3) | |||||||||||||||||||||||||||
(Level 2) | |||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||
Vehicle debt and obligations-floating rates(1) | $ | (510,000 | ) | $ | (510,000 | ) | $ | — | $ | — | $ | (510,000 | ) | ||||||||||||||||||
Vehicle debt and obligations-fixed rates | (900,000 | ) | (926,819 | ) | — | (516,296 | ) | (410,523 | ) | ||||||||||||||||||||||
Canadian dollar denominated vehicle debt and obligations-floating rates | (71,169 | ) | (71,169 | ) | — | — | (71,169 | ) | Debt and other obligations at December 31, 2010 | Carrying | Fair Value | ||||||||||||||||||||
Value | at 12/31/10 | ||||||||||||||||||||||||||||||
Total | $ | (1,481,169 | ) | $ | (1,507,988 | ) | $ | — | $ | (516,296 | ) | $ | (991,692 | ) | (in thousands) | ||||||||||||||||
Debt: | |||||||||||||||||||||||||||||||
Vehicle debt and obligations—floating rates(1) | $ | 1,200,000 | $ | 1,178,875 | |||||||||||||||||||||||||||
Vehicle debt and obligations—Canadian dollar denominated | $ | 49,118 | $ | 49,118 | |||||||||||||||||||||||||||
-1 | Non-vehicle debt—Term Loan | $ | 148,125 | $ | 146,459 | ||||||||||||||||||||||||||
The fair value of the Series 2010-3 VFN excludes the impact of the related interest rate cap. | |||||||||||||||||||||||||||||||
-1 | |||||||||||||||||||||||||||||||
Fair Value Measurements at Reporting Date Using | Includes $500 million relating to the Series 2006-1 notes, the $500 million Series 2007-1 notes swapped from floating interest rates to fixed interest rates, and the $200 million Series 2010-1 VFN. The fair value excludes the impact of the related interest rate swaps and cap. | ||||||||||||||||||||||||||||||
Description | Carrying | Fair Value | Quoted Prices | Significant | Significant | ||||||||||||||||||||||||||
Value Assets | Assets | in Active Markets | Other | Unobservable | |||||||||||||||||||||||||||
(Liabilities) | (Liabilities) | for Identical Assets | Observable | Inputs | |||||||||||||||||||||||||||
at 12/31/11 | at 12/31/11 | (Level 1) | Inputs | (Level 3) | |||||||||||||||||||||||||||
(Level 2) | |||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||
Vehicle debt and obligations-floating rates | $ | (500,000 | ) | $ | (495,820 | ) | $ | — | $ | (495,820 | ) | $ | — | ||||||||||||||||||
Vehicle debt and obligations-fixed rates | (900,000 | ) | (899,292 | ) | — | (499,292 | ) | (400,000 | ) | ||||||||||||||||||||||
Total | $ | (1,400,000 | ) | $ | (1,395,112 | ) | $ | — | $ | (995,112 | ) | $ | (400,000 | ) | |||||||||||||||||
STOCKHOLDERS_EQUITY_DOLLAR_THR
STOCKHOLDERS' EQUITY - DOLLAR THRIFTY | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||
Jun. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2011 | ||||||||||||||||||||||||||||||||||||||||||||
Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | |||||||||||||||||||||||||||||||||||||||||||||
STOCKHOLDERS' EQUITY | Accumulated Other Comprehensive Loss | 10. STOCKHOLDERS' EQUITY | 13. STOCKHOLDERS' EQUITY | |||||||||||||||||||||||||||||||||||||||||||
Changes in the accumulated other comprehensive loss balance by component (net of tax) were as follows (in millions of dollars): | ||||||||||||||||||||||||||||||||||||||||||||||
Share Repurchase Program | Share Repurchase Program | |||||||||||||||||||||||||||||||||||||||||||||
Pension and Other Post-Employment Benefits | Foreign Currency Items | Unrealized Losses on Terminated Net Investment Hedges | Unrealized Gains on Available for Sale Securities | Other | Accumulated Other Comprehensive Loss | In September 2011, the Company announced that its Board of Directors had increased authorization under the share repurchase program to $400 million. The share repurchase program is discretionary and has no expiration date. Subject to applicable law, the Company may repurchase shares through forward stock repurchase agreements, accelerated stock buyback programs, directly in the open market, in privately negotiated transactions, or pursuant to derivative instruments or plans complying with Securities and Exchange Commission ("SEC") Rule 10b5-1, among other types of transactions and arrangements. The share repurchase program may be increased, suspended or discontinued at any time. | On September 26, 2011, the Company announced that its Board of Directors had increased the authorization of the share repurchase program previously announced on February 24, 2011 of up to $100 million to up to $400 million. The share repurchase program is discretionary and has no expiration date. Subject to applicable law, the Company may repurchase shares through forward stock repurchase agreements, accelerated stock buyback programs, directly in the open market, in privately negotiated transactions, or pursuant to derivative instruments or plans complying with SEC Rule 10b5-1, among other types of transactions and arrangements. Additionally, share repurchases are subject to applicable limitations under the Senior Secured Credit Facilities, which as of December 31, 2011, permitted share repurchases totaling approximately $280 million, after giving effect to the $100 million forward stock repurchase plan pre-funded in November 2011. The New Revolving Credit Facility contains limitations on share repurchases. See Note 8 for further discussion. Although payments were funded in 2011 for share repurchases under the forward stock repurchase agreement described below, no shares were repurchased under the share repurchase program as of December 31, 2011. | |||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2013 | $ | (109.8 | ) | $ | 102.7 | $ | (19.4 | ) | $ | — | $ | (0.4 | ) | $ | (26.9 | ) | ||||||||||||||||||||||||||||||
During the three months ended September 30, 2012, the Company repurchased 22,494 shares or approximately $1.8 million of its common stock under the share repurchase program at an average price of $79.74 per share. During the nine months ended September 30, 2012, the Company repurchased 1,821,137 shares or approximately $129.1 million ($100 million of which was pre-funded in November 2011 under a forward stock repurchase agreement) of its common stock under this share repurchase program at an average price of $70.91 per share. As of September 30, 2012, approximately $271 million remained available for further purchases of the Company's common stock under this share repurchase program. Share repurchases are subject to applicable limitations under the Revolving Credit Facility, which as of September 30, 2012, permitted additional share repurchases totaling approximately $344 million. | On November 3, 2011, the Company entered into and pre-funded a forward stock repurchase agreement with Goldman Sachs & Co. ("Goldman") under which the Company agreed to acquire $100 million of Company common stock. The Company currently expects to repurchase shares in 2012 under the remaining authorization of the share repurchase program. The share repurchase program may be increased, suspended or discontinued at any time. | |||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) before reclassification | 0.3 | (55.5 | ) | — | 2.1 | 0.1 | (53.0 | ) | ||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | On February 7, 2012, the Company settled the $100 million forward stock repurchase agreement that was executed on November 3, 2011 and acquired 1,451,193 shares of common stock at an average share price of approximately $68.91. | |||||||||||||||||||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income | 5.1 | 1.5 | — | — | — | 6.6 | The components of accumulated other comprehensive income (loss) are as follows: | Shareholder Rights Plan | ||||||||||||||||||||||||||||||||||||||
On May 18, 2011, the Company adopted a shareholder rights plan (the "Rights Plan") under which the Company's shareholders will receive rights to purchase shares of a new series of preferred stock in certain circumstances. Under the provisions of the Rights Plan, which has an expiration date of May 30, 2012, the rights will be exercisable if a person or group, without the Company's approval, acquires 20% or more of the Company's common stock or announces a tender offer which results in the ownership of 20% or more of the Company's common stock. The rights also will be exercisable if a person or group that already owns 20% or more of the Company's common stock, without the Company's approval, acquires any additional shares. If the rights become exercisable, all rights holders (other than the person triggering the rights) will be entitled to acquire the Company's common stock at a 50% discount. | ||||||||||||||||||||||||||||||||||||||||||||||
Net current period other comprehensive income (loss) | 5.4 | (54.0 | ) | — | 2.1 | 0.1 | (46.4 | ) | Interest Rate | Foreign | Accumulated | |||||||||||||||||||||||||||||||||||
Swap | Currency | Other | On February 17, 2012, the Company extended the Rights Plan for one year, which now expires on May 30, 2013. | |||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2013 | $ | (104.4 | ) | $ | 48.7 | $ | (19.4 | ) | $ | 2.1 | $ | (0.3 | ) | $ | (73.3 | ) | Translation | Comprehensive | ||||||||||||||||||||||||||||
Income (Loss) | Public Stock Offering | |||||||||||||||||||||||||||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||||||||||||||||||||||||
Balance, January 1, 2012 | $ | (8,488 | ) | $ | 871 | $ | (7,617 | ) | In October 2009, the Company entered into a terms agreement with certain underwriters to issue and sell 5,750,000 shares of the Company's common stock, par value $0.01 per share, at a price to the public of $19.25 per share. The Company also granted the underwriters an option to purchase up to an additional 862,500 shares of common stock. The sale was made pursuant to the Company's registration statement on Form S-3 filed with the Securities and Exchange Commission. The sale of the initial shares closed on November 3, 2009, and the sale of the additional shares pursuant to the underwriters' option to purchase additional shares closed on November 11, 2009. The 6,612,500 shares issued resulted in $120.6 million of net proceeds to the Company after deducting underwriting discounts, commissions and expenses of the offering of $6.6 million. | |||||||||||||||||||||||||||||||||||||
Pension and Other Post-Employment Benefits | Foreign Currency Items | Unrealized Losses on Terminated Net Investment Hedges | Unrealized Gains on Available for Sale Securities | Other | Accumulated Other Comprehensive Loss | Interest rate swap, net of tax | 8,488 | — | 8,488 | |||||||||||||||||||||||||||||||||||||
Balance at January 1, 2012 | $ | (99.6 | ) | $ | 91.3 | $ | (19.4 | ) | $ | 0.3 | $ | (1.0 | ) | $ | (28.4 | ) | Foreign currency translation adjustment | — | 5,491 | 5,491 | Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||||||||
Other comprehensive income (loss) before reclassification | — | (16.5 | ) | — | 3.1 | 0.1 | (13.3 | ) | Balance, September 30, 2012 | $ | — | $ | 6,362 | $ | 6,362 | The components of accumulated other comprehensive income (loss) are as follows: | ||||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income | 3.7 | — | — | — | — | 3.7 | The cash flow hedge amount deferred into AOCI is related to the derivatives used to manage the interest rate risk, associated with the Company's vehicle-related debt, which was terminated and is being recognized into earnings along with the interest payments the derivatives were designated to hedge. See Note 8 for further discussion. | Interest Rate | Foreign | Accumulated | ||||||||||||||||||||||||||||||||||||
SWAP | Currency | Other | ||||||||||||||||||||||||||||||||||||||||||||
Translation | Comprehensive | |||||||||||||||||||||||||||||||||||||||||||||
Net current period Other comprehensive income (loss) | 3.7 | (16.5 | ) | — | 3.1 | 0.1 | (9.6 | ) | Income (Loss) | |||||||||||||||||||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2012 | $ | (95.9 | ) | $ | 74.8 | $ | (19.4 | ) | $ | 3.4 | $ | (0.9 | ) | $ | (38.0 | ) | Balance, January 1, 2009 | $ | (32,952 | ) | $ | 3,564 | $ | (29,388 | ) | |||||||||||||||||||||
Interest rate swap and cap adjustment, net of tax | 8,662 | — | 8,662 | |||||||||||||||||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) to earnings during the three-month and six-month periods ended June 30, 2013 and 2012 were as follows (in millions of dollars): | Foreign currency translation adjustment | — | 2,352 | 2,352 | ||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2009 | (24,290 | ) | 5,916 | (18,374 | ) | |||||||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | Statement of Operations Captions | Interest rate swap and cap adjustment, net of tax | 5,543 | — | 5,543 | ||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | Foreign currency translation adjustment | — | 502 | 502 | |||||||||||||||||||||||||||||||||||||||
Pension and other postretirement benefit plans | ||||||||||||||||||||||||||||||||||||||||||||||
Amortization of actuarial losses(1) | $ | 4 | $ | 3.2 | $ | 8.3 | $ | 6 | Selling, general and administrative | Balance, December 31, 2010 | (18,747 | ) | 6,418 | (12,329 | ) | |||||||||||||||||||||||||||||||
Interest rate swap and cap adjustment, net of tax | 10,259 | — | 10,259 | |||||||||||||||||||||||||||||||||||||||||||
Tax provision | (1.5 | ) | (1.2 | ) | (3.2 | ) | (2.3 | ) | Foreign currency translation adjustment | — | (5,547 | ) | (5,547 | ) | ||||||||||||||||||||||||||||||||
Net of tax | $ | 2.5 | $ | 2 | $ | 5.1 | $ | 3.7 | ||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2011 | $ | (8,488 | ) | $ | 871 | $ | (7,617 | ) | ||||||||||||||||||||||||||||||||||||||
Foreign Currency Items(2) | $ | 1.5 | $ | — | $ | 1.5 | $ | — | Other Income | |||||||||||||||||||||||||||||||||||||
Total reclassifications for the period | $ | 4 | $ | 2 | $ | 6.6 | $ | 3.7 | ||||||||||||||||||||||||||||||||||||||
-1 | Included in the computation of net periodic pension / postretirement expenses (see Note 9—Employee Retirement Benefits). | |||||||||||||||||||||||||||||||||||||||||||||
-2 | Tax amounts are included in "Provision for taxes on income" in the consolidation statements of operations. |
INCOME_TAXES_DOLLAR_THRIFTY
INCOME TAXES - DOLLAR THRIFTY | 6 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | ||||||||||||||||||||||||||||||||
Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | ||||||||||||||||||||||||||||||||||
INCOME TAXES | Taxes on Income | Taxes on Income | 11. INCOME TAXES | 12. INCOME TAXES | |||||||||||||||||||||||||||||||
The effective tax rate for the three months ended June 30, 2013 and 2012 was 42.4% and 41.2%, respectively. The effective tax rate for the six months ended June 30, 2013 and 2012 was 49.8% and 64.3%, respectively. The effective tax rate for the full fiscal year 2013 is expected to be approximately 41%. The provision for taxes on income of $95.8 million for the three months ended June 30, 2013 increased from $70.7 million for the three months ended June 30, 2012, primarily due to higher income before income taxes, changes in geographic earnings mix and changes in losses in certain non-U.S. jurisdictions for which tax benefits are not realized, and non-deductible acquisition costs related to the China transaction. The provision for taxes on income of $155.3 million for the six months ended June 30, 2013 increased from $94.9 million for the six months ended June 30, 2012, primarily due to higher income before income taxes, changes in geographic earnings mix and changes in losses in certain non-U.S. jurisdictions for which tax benefits are not realized, and non-deductible acquisition costs related to the China transaction. | The components of income (loss) before income taxes for the periods were as follows (in millions of dollars): | ||||||||||||||||||||||||||||||||||
The Company has provided for income taxes on consolidated taxable income using a consolidated effective tax rate which reflects the utilization of Canadian tax net operating loss ("NOL") carryforwards to the extent of Canadian taxable income. A full valuation allowance had previously been recorded against the Canadian NOLs due to losses in the Canadian operations. Deferred income taxes are provided for the temporary differences between the financial reporting basis and the tax basis of the Company's assets and liabilities. A valuation allowance is recorded for deferred income tax assets when management determines it is more likely than not that such assets will not be realized. | Income tax expense consists of the following: | ||||||||||||||||||||||||||||||||||
Years ended December 31, | The Company utilizes a like-kind exchange program for its vehicles whereby tax basis gains on disposal of eligible revenue-earning vehicles are deferred for purposes of U.S. federal and state income tax (the "Like-Kind Exchange Program"). To qualify for Like-Kind Exchange Program treatment, the Company exchanges (through a qualified intermediary) vehicles being disposed of with vehicles being purchased allowing the Company to carry-over the tax basis of vehicles sold to replacement vehicles, thereby deferring taxable gains from vehicle dispositions. In addition, the Company has historically elected to utilize accelerated or "bonus" depreciation methods on its vehicle inventories in order to defer its cash liability for U.S. federal and state income tax purposes. The Company's ability to continue to defer the reversal of prior period tax deferrals will depend on a number of factors, including the size of the Company's fleet, as well as the availability of accelerated depreciation methods in future years. Accordingly, the Company may make material cash federal income tax payments in future periods. Based on existing tax law, the Company expects to be a cash taxpayer in 2012. During the nine months ended September 30, 2012, the Company received a tax refund of $8.8 million due to overpayments of the excess estimated tax payments made in 2011, and paid $29 million in estimated federal taxes for 2012. | ||||||||||||||||||||||||||||||||||
2012 | 2011 | 2010 | Year Ended December 31, | ||||||||||||||||||||||||||||||||
Domestic | $ | 407.7 | $ | 235.9 | $ | (81.2 | ) | For the three and nine months ended September 30, 2012, the overall effective tax rate of 37.6% and 38.1%, respectively, and for the three and nine months ended September 30, 2011, the overall effective tax rate of 37.1% and 39.1%, respectively, differed from the U.S. statutory federal income tax rate primarily due to state and local taxes and the operating results of DTG Canada for which no income tax expense was recorded due to the utilization of prior NOL carryforwards for which no benefit had previously been recognized due to valuation allowance. | 2011 | 2010 | 2009 | ||||||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||||||||||||
Foreign | 95.2 | 138 | 113.5 | As of September 30, 2012 and December 31, 2011, the Company had no material liability for unrecognized tax benefits. There are no material tax positions for which it is reasonably possible that unrecognized tax benefits will significantly change in the 12 months subsequent to September 30, 2012. | Current: | ||||||||||||||||||||||||||||||
Federal | $ | 6,019 | $ | 79 | $ | 4,867 | |||||||||||||||||||||||||||||
Total | $ | 502.9 | $ | 373.9 | $ | 32.3 | The Company files income tax returns in the U.S. federal and various state, local and foreign jurisdictions. In the Company's significant tax jurisdictions, the tax years 2009 and later are subject to examination by U.S. federal taxing authorities and the tax years 2008 and later are subject to examination by state and foreign taxing authorities. | State and local | 8,184 | 12,535 | 13,417 | ||||||||||||||||||||||||
Foreign | 837 | 631 | 848 | ||||||||||||||||||||||||||||||||
The total provision (benefit) for taxes on income consists of the following (in millions of dollars): | The Company accrues interest and penalties on underpayment of income taxes related to unrecognized tax benefits as a component of income tax expense in the condensed consolidated statements of comprehensive income. No material amounts were recognized for interest and penalties during the three and nine months ended September 30, 2012 and 2011. | ||||||||||||||||||||||||||||||||||
15,040 | 13,245 | 19,132 | |||||||||||||||||||||||||||||||||
Deferred: | |||||||||||||||||||||||||||||||||||
Years ended December 31, | Federal | 78,316 | 70,968 | 19,365 | |||||||||||||||||||||||||||||||
2012 | 2011 | 2010 | State and local | 8,336 | 5,989 | (2,511 | ) | ||||||||||||||||||||||||||||
Current: | |||||||||||||||||||||||||||||||||||
Federal | $ | 20.1 | $ | 10.3 | $ | 10.2 | 86,652 | 76,957 | 16,854 | ||||||||||||||||||||||||||
Foreign | 32.3 | 30.6 | 41.5 | $ | 101,692 | $ | 90,202 | $ | 35,986 | ||||||||||||||||||||||||||
State and local | 39.1 | 28.5 | 1.5 | ||||||||||||||||||||||||||||||||
Deferred tax assets and liabilities consist of the following: | |||||||||||||||||||||||||||||||||||
Total current | 91.5 | 69.4 | 53.2 | ||||||||||||||||||||||||||||||||
Deferred: | December 31, | ||||||||||||||||||||||||||||||||||
Federal | 141.9 | 82.4 | (18.6 | ) | 2011 | 2010 | |||||||||||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||||||||||||
Foreign | 11.9 | (3.2 | ) | 1.3 | Deferred tax assets: | ||||||||||||||||||||||||||||||
Intangible asset amortization | $ | 32,744 | $ | 37,176 | |||||||||||||||||||||||||||||||
State and local | (18.2 | ) | (4.8 | ) | (2.6 | ) | Vehicle insurance reserves | 30,183 | 38,456 | ||||||||||||||||||||||||||
Total deferred | 135.6 | 74.4 | (19.9 | ) | Other accrued liabilities | 27,450 | 33,621 | ||||||||||||||||||||||||||||
Interest rate swap | — | 15,267 | |||||||||||||||||||||||||||||||||
Total provision (benefit) | $ | 227.1 | $ | 143.8 | $ | 33.3 | AMT credit carryforward | — | 7,252 | ||||||||||||||||||||||||||
Canadian NOL carryforwards | 16,561 | 17,650 | |||||||||||||||||||||||||||||||||
Other Canadian temporary differences | 6,278 | 6,462 | |||||||||||||||||||||||||||||||||
The principal items of the U.S. and foreign net deferred tax assets and liabilities at December 31, 2012 and 2011 are as follows (in millions of dollars): | Federal and state NOL carryforwards | 50,993 | 5,723 | ||||||||||||||||||||||||||||||||
Allowance for doubtful accounts and notes receivable | 1,036 | 1,729 | |||||||||||||||||||||||||||||||||
Canadian depreciation | 1,834 | 1,862 | |||||||||||||||||||||||||||||||||
2012 | 2011 | ||||||||||||||||||||||||||||||||||
Deferred Tax Assets: | 167,079 | 165,198 | |||||||||||||||||||||||||||||||||
Employee benefit plans | $ | 103.6 | $ | 102.8 | Valuation allowance | (24,705 | ) | (26,042 | ) | ||||||||||||||||||||||||||
Net operating loss carryforwards | 1,610.90 | 1,743.50 | Total | $ | 142,374 | $ | 139,156 | ||||||||||||||||||||||||||||
Foreign tax credit carryforwards | 20.8 | 20.8 | Deferred tax liabilities: | ||||||||||||||||||||||||||||||||
Depreciation | $ | 484,942 | $ | 381,078 | |||||||||||||||||||||||||||||||
Federal, state and foreign local tax credit carryforwards | 26.8 | 15 | Other | 394 | 1,008 | ||||||||||||||||||||||||||||||
Accrued and prepaid expenses | 341.7 | 327.4 | Total | $ | 485,336 | $ | 382,086 | ||||||||||||||||||||||||||||
Total Deferred Tax Assets | 2,103.80 | 2,209.50 | |||||||||||||||||||||||||||||||||
For the year ended December 31, 2011, the change in the net deferred tax liabilities constituted $86.7 million of deferred tax expense and $13.3 million of other comprehensive income that relates to the interest rate swap and foreign currency translation. | |||||||||||||||||||||||||||||||||||
Less: Valuation Allowance | (226.4 | ) | (186.7 | ) | |||||||||||||||||||||||||||||||
Total Net Deferred Tax Assets | 1,877.40 | 2,022.80 | The Company has provided for income taxes in the U.S. and in Canada based on taxable income or loss and other tax attributes separately for each jurisdiction. The Company has established tax provisions separately for U.S. taxable income and Canadian losses, for which no income tax benefit was recorded. Deferred income taxes are provided for the temporary differences between the financial reporting basis and the tax basis of the Company's assets and liabilities. A valuation allowance is recorded for deferred income tax assets when management determines it is more likely than not that such assets will not be realized. | ||||||||||||||||||||||||||||||||
Deferred Tax Liabilities: | The Company utilizes a like-kind exchange program for its vehicles whereby tax basis gains on disposal of eligible revenue-earning vehicles are deferred for purposes of U.S. federal and state income tax (the "Like-Kind Exchange Program"). To qualify for Like-Kind Exchange Program treatment, the Company exchanges (through a qualified intermediary) vehicles being disposed of with vehicles being purchased allowing the Company to carry-over the tax basis of vehicles sold to replacement vehicles, thereby deferring taxable gains from vehicle dispositions. In addition, the Company has historically elected to utilize accelerated or "bonus" depreciation methods on its vehicle inventories in order to defer its cash liability for U.S. federal and state income tax purposes. The Company's ability to continue to defer the reversal of prior period tax deferrals will depend on a number of factors, including the size of the Company's fleet, as well as the availability of accelerated depreciation methods in future years. Accordingly, the Company may make material cash federal income tax payments in future periods. | ||||||||||||||||||||||||||||||||||
Depreciation on tangible assets | (3,081.4 | ) | (2,742.3 | ) | |||||||||||||||||||||||||||||||
Intangible assets | (1,477.1 | ) | (942.4 | ) | In September 2010, Congress passed and the President signed into law the Small Business Jobs and Credit Act of 2010 (the "Small Business Act"), which extended 50% bonus depreciation allowances for assets placed in service in 2010, retroactively to the first of the year. In December 2010, Congress passed and the President signed into law the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (the "Tax Relief Act"), which increased the bonus depreciation allowance to 100% for assets placed in service from September 9, 2010 through December 31, 2011, as well as provided for 50% bonus depreciation for assets placed in service in 2012. During the first quarter of 2011, the Company received federal tax refunds of $50 million, based on overpayments of estimated taxes made in 2010, as a result of the enactment of the Small Business and Tax Relief Acts. | ||||||||||||||||||||||||||||||
Total Deferred Tax Liabilities | (4,558.5 | ) | (3,684.7 | ) | |||||||||||||||||||||||||||||||
Net Deferred Tax Liability | $ | (2,681.1 | ) | $ | (1,661.9 | ) | At December 31, 2011, the Company has federal Net Operating Loss ("NOL") carryfowards of approximately $166.3 million and expects to utilize the entire amount to offset federal taxable income in 2012. The Company has NOL carryforwards available in certain states to offset future state taxable income. A valuation allowance of approximately $24.6 million and $25.9 million existed at December 31, 2011 and 2010, respectively, for Canadian NOLs and approximately $0.1 million at both December 31, 2011 and 2010, for state NOLs. At December 31, 2011, DTG Canada has NOL carryforwards of approximately $66.2 million available to offset future taxable income in Canada. The Canadian NOLs will begin expiring in 2014 and will continue to expire through 2031. Valuation allowances have been established for the total estimated future tax effect of the Canadian NOLs and other Canadian net deferred tax assets. | ||||||||||||||||||||||||||||
As of December 31, 2012, deferred tax assets of $1,294.3 million were recorded for unutilized U.S. Federal Net Operating Losses, or “NOL,” carry forwards of $3,697.9 million. The total Federal NOL carry forwards are $3,775.0 million of which $77.1 million relate 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 $27.0 million will be recorded to Additional paid-in capital. The Federal NOLs begin to expire in 2025. State NOLs exclusive of the effects of the excess tax deductions, have generated a deferred tax asset of $105.8 million. The state NOLs expire over various years beginning in 2013 depending upon particular jurisdiction. | |||||||||||||||||||||||||||||||||||
On January 1, 2009, Bank of America acquired Merrill Lynch. For U.S. income tax purposes the transaction, when combined with other unrelated transactions during the previous 36 months, resulted in a change in control as that term is defined in Section 382 of the Internal Revenue Code. Consequently, utilization of all pre-2009 U.S. net operating losses is subject to an annual limitation. We have calculated the expected annual base limitation as well as additional limitations resulting from a net unrealized built in gain as of the acquisition date and other adjustments. Based on the calculations, the limitation is not expected to result in a loss of net operating losses or have a material adverse impact on taxes. | The Company's overall effective tax rate differs from the maximum U.S. statutory federal income tax rate due primarily to state and local taxes. The following summary reconciles taxes at the maximum U.S. statutory federal income tax rate with recorded taxes: | ||||||||||||||||||||||||||||||||||
As of December 31, 2012, deferred tax assets of $248.5 million were recorded for foreign NOL carry forwards of $1,049.0 million. A valuation allowance of $200.6 million at December 31, 2012 was recorded against these deferred tax assets because those assets relate to jurisdictions that have historical losses and the likelihood exists that a portion of the NOL carry forwards may not be utilized in the future. | |||||||||||||||||||||||||||||||||||
The foreign NOL carry forwards of $1,049.0 million include $775.5 million which have an indefinite carry forward period and associated deferred tax assets of $170.6 million. The remaining foreign NOLs of $273.5 million are subject to expiration beginning in 2015 and have associated deferred tax assets of $77.9 million. | |||||||||||||||||||||||||||||||||||
As of December 31, 2012, deferred tax assets for U.S. Foreign Tax Credit carry forwards were $20.8 million which relate to credits generated as of December 31, 2007. The carry forwards will begin to expire in 2015. A valuation allowance of $13.5 million at December 31, 2012 was recorded against a portion of the U.S. foreign tax credit deferred tax assets in the likelihood that they may not be utilized in the future. A deferred tax asset was also recorded for various state tax credit carry forwards of $3.0 million, which will begin to expire in 2027. | Year Ended December 31, | ||||||||||||||||||||||||||||||||||
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 carry forwards and estimates of projected future taxable income. Based on the assessment, as of December 31, 2012, total valuation allowances of $226.4 million were recorded against deferred tax assets. Although realization is not assured, we have concluded that it is more likely than not the remaining deferred tax assets of $1,877.4 million will be realized and as such no valuation allowance has been provided on these assets. | 2011 | 2010 | 2009 | ||||||||||||||||||||||||||||||||
The significant items in the reconciliation of the statutory and effective income tax rates consisted of the following: | Amount | Percent | Amount | Percent | Amount | Percent | |||||||||||||||||||||||||||||
(Amounts in Thousands) | |||||||||||||||||||||||||||||||||||
Tax expense computed at the maximum U.S. statutory rate | $ | 91,435 | 35 | % | $ | 77,496 | 35 | % | $ | 28,353 | 35 | % | |||||||||||||||||||||||
Years ended December 31, | Difference resulting from: | ||||||||||||||||||||||||||||||||||
2012 | 2011 | 2010 | State and local taxes, net of federal income tax benefit | 11,132 | 4.2 | % | 12,056 | 5.4 | % | 7,007 | 8.6 | % | |||||||||||||||||||||||
Statutory Federal Tax Rate | 35 | % | 35 | % | 35 | % | Foreign (income) losses | (623 | ) | (0.2 | )% | 1,522 | 0.7 | % | 1,111 | 1.4 | % | ||||||||||||||||||
Foreign tax differential | (3.2 | ) | (3.3 | ) | (32.1 | ) | Foreign taxes | 586 | 0.2 | % | 416 | 0.2 | % | 633 | 0.8 | % | |||||||||||||||||||
State and local income taxes, net of federal income tax benefit | 2.9 | 3.2 | (5.2 | ) | Other | (838 | ) | (0.3 | )% | (1,288 | ) | (0.6 | )% | (1,118 | ) | (1.4 | )% | ||||||||||||||||||
Change in state statutory rates, net of federal income tax benefit | (1.0 | ) | 0.5 | 5.1 | Total | $ | 101,692 | 38.9 | % | $ | 90,202 | 40.7 | % | $ | 35,986 | 44.4 | % | ||||||||||||||||||
Federal and foreign permanent differences | 2.3 | (1.1 | ) | (24.0 | ) | ||||||||||||||||||||||||||||||
The Company had no material liability for unrecognized tax benefits at December 31, 2011. There are no material tax positions for which it is reasonably possible that unrecognized tax benefits will significantly change in the twelve months subsequent to December 31, 2011. | |||||||||||||||||||||||||||||||||||
Withholding taxes | 1.7 | 2 | 26.2 | ||||||||||||||||||||||||||||||||
The Company files income tax returns in the U.S. federal and various state, local and foreign jurisdictions. In the Company's significant tax jurisdictions, the tax years 2008 and later are subject to examination by U.S. federal taxing authorities and the tax years 2007 and later are subject to examination by state and foreign taxing authorities. | |||||||||||||||||||||||||||||||||||
Uncertain tax positions | (0.6 | ) | (0.8 | ) | 11.2 | ||||||||||||||||||||||||||||||
The Company accrues interest and penalties on underpayment of income taxes related to unrecognized tax benefits as a component of income tax expense in the consolidated statements of income. No material amounts were recognized for interest and penalties under ASC Topic 740 during the years ended December 31, 2011, 2010 and 2009. | |||||||||||||||||||||||||||||||||||
Change in valuation allowance | 7.9 | 0.6 | 85.1 | ||||||||||||||||||||||||||||||||
All other items, net | 0.2 | 2.4 | 1.8 | ||||||||||||||||||||||||||||||||
Effective Tax Rate | 45.2 | % | 38.5 | % | 103.1 | % | |||||||||||||||||||||||||||||
The effective tax rate for the year ended December 31, 2012 was 45.2% as compared to 38.5% in the year ended December 31, 2011. The provision for taxes on income increased $83.3 million, primarily due to higher income before income taxes, changes in geographic earnings mix, changes in valuation allowances for losses in certain non-U.S. jurisdictions for which tax benefits cannot be realized and non-deductible compensation payments under Internal Revenue Code Section 280(G) related to the Dollar Thrifty acquisition. | |||||||||||||||||||||||||||||||||||
The negative effective tax rate in 2010 is primarily due to a lower loss before income taxes in 2010, valuation allowances for losses in certain non-U.S. jurisdictions for which tax benefits cannot be realized and differences in foreign tax rates versus the U.S. Federal tax rate and the impact of the France law change in 2010. | |||||||||||||||||||||||||||||||||||
As of December 31, 2012, our foreign subsidiaries have $270.3 million of undistributed earnings which would 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 undistributed earnings offshore. It is not practicable to estimate the amount of such deferred tax liabilities. 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, deferred tax liabilities will be recorded. | |||||||||||||||||||||||||||||||||||
As of December 31, 2012, total unrecognized tax benefits were $17.2 million, all of which, if recognized, would favorably impact the effective tax rate in future periods. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in millions of dollars): | |||||||||||||||||||||||||||||||||||
2012 | 2011 | 2010 | |||||||||||||||||||||||||||||||||
Balance at January 1 | $ | 21.6 | $ | 27.2 | $ | 25.6 | |||||||||||||||||||||||||||||
Increase (decrease) attributable to tax positions taken during prior periods | (6.8 | ) | (9.5 | ) | 0.3 | ||||||||||||||||||||||||||||||
Increase attributable to tax positions taken during the current year | 2.4 | 3.9 | 1.3 | ||||||||||||||||||||||||||||||||
Decrease attributable to settlements with taxing authorities | — | — | — | ||||||||||||||||||||||||||||||||
Balance at December 31 | $ | 17.2 | $ | 21.6 | $ | 27.2 | |||||||||||||||||||||||||||||
We conduct business globally and, as a result, file one or more income tax returns in the U.S. and non-U.S. jurisdictions. In the normal course of business we are subject to examination by taxing authorities throughout the world. The open tax years for these jurisdictions span from 2003 to 2012. We are currently under audit by the Internal Revenue Service for tax years 2006 to 2009. Several U.S. state and non-U.S. jurisdictions are under audit. | |||||||||||||||||||||||||||||||||||
In many cases the uncertain tax positions are related to tax years that remain subject to examination by the relevant taxing authorities. It is reasonable that approximately $6.8 million of unrecognized tax benefits may reverse within the next twelve months due to settlement with the relevant taxing authorities and/or the filing of amended income tax returns. | |||||||||||||||||||||||||||||||||||
Net, after-tax interest and penalties related to the liabilities for unrecognized tax benefits are classified as a component of “Provision for taxes on income” in the consolidated statement of operations. During the years ended December 31, 2012, 2011 and 2010, approximately $0.6 million, $1.9 million and $0.2 million, respectively, in net, after-tax interest and penalties were recognized. As of December 31, 2012 and 2011, approximately $4.2 million and $3.7 million, respectively, of net, after-tax interest and penalties was accrued in our consolidated balance sheet within "Accrued taxes." |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES - DOLLAR THRIFTY | 6 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | ||||||||||||
Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | ||||||||||||||
COMMITMENTS AND CONTINGENCIES | Contingencies and Off-Balance Sheet Commitments | Contingencies and Off-Balance Sheet Commitments | 12. COMMITMENTS AND CONTINGENCIES | 14. COMMITMENTS AND CONTINGENCIES | |||||||||||
Off-Balance Sheet Commitments | Legal Proceedings | ||||||||||||||
As of June 30, 2013 and December 31, 2012, the following guarantees (including indemnification commitments) were issued and outstanding: | From time to time we are a party to various legal proceedings. Other than with respect to the aggregate claims for public liability and property damage pending against us, management does not believe that any of the matters resolved, or pending against us, during 2012 are material to us and our subsidiaries taken as a whole. While we have accrued a liability with respect to claims for public liability and property damage of $332.2 million at December 31, 2012, management, based on the advice of legal counsel, does not believe any of the other pending matters described below are material. We have summarized below, for purposes of providing background, various legal proceedings to which we were and/or are a party during 2012 or the period after December 31, 2012 but before the filing of this Annual Report. In addition to the following, various other legal actions, claims and governmental inquiries and proceedings are pending or may be instituted or asserted in the future against us and our subsidiaries. As previously disclosed, on June 15, 2011 we received a subpoena from the staff of the Securities and Exchange Commission, or "SEC," seeking production of documents related to our proposed business combination with Dollar Thrifty. On February 14, 2013, we were informed by the staff that the investigation has been completed and that no action was taken by the staff or the SEC. | There have been no material changes to the Commitments and Contingencies Note 14 of the Company's audited consolidated financial statements contained elsewhere in this prospectus, with the exception of the following: | Concessions and Operating Leases | ||||||||||||
Indemnification Obligations | |||||||||||||||
In the ordinary course of business, we execute 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. We regularly evaluate the probability of having to incur costs associated with these indemnification obligations and have accrued for expected losses that are probable and estimable. The types of indemnification obligations for which payments are possible include the following: | 1 | Hertz Equipment Rental Corporation, or “HERC,” Loss Damage Waiver | Vehicle Insurance Reserves | The Company has certain concession agreements principally with airports throughout the U.S. and Canada. Typically, these agreements provide airport terminal counter space in return for a minimum rent. In many cases, the Company's subsidiaries are also obligated to pay insurance and maintenance costs and additional rents generally based on revenues earned at the location. Certain of the airport locations are operated by franchisees who are obligated to make the required rent and concession fee payments under the terms of their franchise arrangements with the Company's subsidiaries. | |||||||||||
Sponsors; Directors | On August 15, 2006, Davis Landscape, Ltd., individually and on behalf of all others similarly situated, filed a complaint against HERC in the United States District Court for the District of New Jersey. In November 2006, the complaint was amended to add another plaintiff, Miguel V. Pro, and more claims. The Davis Landscape matter purports to be a nationwide class action on behalf of all persons and business entities who rented equipment from HERC and who paid a Loss Damage Waiver, or “LDW,” or an Environmental Recovery Fee, or “ERF.” The plaintiffs seek a declaratory judgment and injunction prohibiting HERC from engaging in acts with respect to the LDW and ERF charges that violate the New Jersey Consumer Fraud Act and claim that the charges violate the Uniform Commercial Code. The plaintiffs also seek an unspecified amount of compensatory damages with the return of all LDW and ERF charges paid, attorneys' fees and costs as well as other damages. The court has granted class certification, denied our motion for summary judgment and the case is in the discovery stages. In February 2012, we filed separate motions for partial summary judgment on the LDW and ERF claims and we filed a motion to decertify the class. In June 2012, the judge denied our motion for partial summary judgment on the LDW claim and, in July 2012, the judge granted our motion for partial summary judgment on the ERF claim. The court also entered an order referring the case to mediation by private consent of the parties. We have continued to work through the mediator and in direct discussions with plaintiffs’ counsel on an acceptable settlement of this litigation and have accrued our best estimate of the ultimate cost which is not material to our financial condition. | ||||||||||||||
We have entered into customary indemnification agreements with Hertz Holdings, the Sponsors and Hertz Holdings' stockholders affiliated with the Sponsors, pursuant to which Hertz Holdings and we will indemnify the Sponsors, Hertz Holdings' stockholders affiliated with the Sponsors and their respective affiliates, directors, officers, partners, members, employees, agents, representatives and controlling persons, against certain liabilities arising out of performance of a consulting agreement with Hertz Holdings and each of the Sponsors and certain other claims and liabilities, including liabilities arising out of financing arrangements or securities offerings. We do not believe that these indemnifications are reasonably likely to have a material impact on us. Hertz Holdings has entered into indemnification agreements with each of its directors. | The Company records reserves for its public liability and property damage exposure using actuarially-based loss estimates, which are updated semi-annually in June and December of each year. In June 2011, the Company began semi-annual updates for supplemental liability insurance, as such reserves had been previously updated on an annual basis in December. As a result of favorable overall claims loss development, the Company recorded favorable insurance reserve adjustments, which effectively represents revision to previous estimates of vehicle insurance charges, of $2.5 million for the nine months ended September 30, 2012 and $10.6 million for the nine months ended September 30, 2011. | The Company's subsidiaries operate from various leased premises under operating leases with terms up to 30 years. Some of the leases contain renewal options. Certain leases include contingent rental amount based on a percentage of the Company's revenue or gross receipts as defined in the lease agreement. | |||||||||||||
Environmental | 2 | Concession Fee Recoveries | |||||||||||||
We have 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 we may be held responsible could be substantial. The probable expenses that we expect to incur for such matters have been accrued, and those expenses are reflected in our condensed consolidated financial statements. As of June 30, 2013 and December 31, 2012, the aggregate amounts accrued for environmental liabilities including liability for environmental indemnities, reflected in our condensed consolidated balance sheets in "Accrued liabilities" were $2.6 million and $2.6 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 we ultimately may be responsible cannot be reasonably estimated because of uncertainties with respect to factors such as our 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). | On October 13, 2006, Janet Sobel, Daniel Dugan, PhD. and Lydia Lee, individually and on behalf of all others similarly situated v. The Hertz Corporation and Enterprise Rent-A-Car Company, or “Enterprise,” was filed in the United States District Court for the District of Nevada. The plaintiffs agreed to not pursue claims against Enterprise initially and the case only proceeded against Hertz. The Sobel case purports to be a nationwide class action on behalf of all persons who rented cars from Hertz at airports in Nevada and were separately charged airport concession recovery fees by Hertz as part of their rental charges. The plaintiffs seek an unspecified amount of compensatory damages, restitution of any charges found to be improper and an injunction prohibiting Hertz from quoting or charging those airport fees that are alleged not to be allowed by Nevada law. The complaint also seeks attorneys' fees and costs. Relevant documents were produced, depositions were taken and pre-trial motions were filed. After the court rendered a mixed ruling on the parties' cross‑motions for summary judgment and after the Lydia Lee case was refiled against Enterprise, the parties engaged in mediation which resulted in a proposed settlement. Although the court tentatively approved the settlement in November 2010, the court denied the plaintiffs' motion for final approval of the proposed settlement in May 2011. Since that time, the plaintiffs filed a motion for class certification-which we opposed-and discovery has commenced again. A separate action is proceeding against Enterprise, National and Alamo. In May 2012, all briefing was completed on the two outstanding issues—unjust enrichment and damages. The briefing included expert reports as submitted by both sides. In October 2012, the court held a hearing on the plaintiffs’ motion for class certification. The court has since entered a stay order and the parties will again be engaging in mediation. | Contingencies | Expenses incurred under operating leases and concessions were as follows: | ||||||||||||
Legal Proceedings | |||||||||||||||
From time to time we are a party to various legal proceedings. We are currently a defendant in numerous actions and have received numerous claims on which actions have not yet been commenced for public liability and property damage arising from the operation of motor vehicles and equipment rented from us and our licensees. The obligation for public liability and property damage on self-insured U.S. and international vehicles and equipment, as stated on our balance sheet, 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 costs. At June 30, 2013 and December 31, 2012 our liability recorded for public liability and property damage matters was $327.5 million and $332.2 million, respectively. We believe that our analysis is based on the most relevant information available, combined with reasonable assumptions, and that we may prudently rely on this information to determine the estimated liability. We note the liability is subject to significant uncertainties. The adequacy of the liability reserve is regularly monitored based on evolving accident claim history and insurance related state legislation changes. If our estimates change or if actual results differ from these assumptions, the amount of the recorded liability is adjusted to reflect these results. | 3 | Telephone Consumer Protection Act | The following recent developments pertaining to legal proceedings described in the Company's Form 10-K are furnished on a supplemental basis: | ||||||||||||
For a detailed description of certain of our legal proceedings please see Note 12 of the Notes to our audited annual consolidated financial statements included in our Form 10-K under the caption "Item 8—Financial Statements and Supplementary Data." | On May 3, 2007, Fun Services of Kansas City, Inc., individually and as the representative of a class of similarly‑situated persons, v. Hertz Equipment Rental Corporation was commenced in the District Court of Wyandotte County, Kansas. The case was subsequently transferred to the District Court of Johnson County, Kansas. The Fun Services matter purports to be a class action on behalf of all persons in Kansas and throughout the United States who, on or after four years prior to the filing of the action, were sent facsimile messages of advertising materials relating to the availability of property, goods or services by HERC and who did not provide express permission for sending such faxes. The plaintiffs seek an unspecified amount of compensatory damages, attorney's fees and costs. In August 2009, the court issued an order that stayed all activity in this litigation pending a decision by the Kansas Supreme Court in Critchfield Physical Therapy, Inc. v. Taranto Group, Inc., another Telephone Consumer Protection Act case. The Kansas Supreme Court issued its decision in September 2011. Thereafter, the District Court of Johnson County lifted the stay in the Fun Services case and issued a scheduling order that addresses class certification discovery. In February 2012, HERC filed a Notice of Removal with the U.S. District Court for the District of Kansas seeking to remove the case to federal court based on federal question jurisdiction. In March 2012, the federal magistrate entered an order requiring the parties to engage in mediation and report back to her regarding their progress by June 2012. In June 2012, a mediation was held and as a result of the mediation, the parties reached an agreement in principle to settle this class action. A settlement that addresses compensation to class members, class counsel fees and the claims process was finalized by the parties’ counsel in January 2013. The court issued an order preliminarily approving the settlement in January 2013 and the final approval hearing is currently scheduled for April 2013. We have accrued our best estimate of the ultimate cost, which is not material to our financial condition. | Year Ended December 31, | |||||||||||||
The following recent developments pertaining to legal proceedings described in our Form 10-K are furnished on a supplemental basis: | On March 2, 2012, the appellate court in Susan and Jeffrey Dillon v. DTG Operations, Inc. d/b/a Thrifty Car Rental (Case No. 09CH34874, Cook County Circuit Court, Chancery Division, Illinois) upheld the lower court's ruling in favor of the Company. The Plaintiffs did not seek a rehearing or further appeals, and this action has been dismissed. | 2011 | 2010 | 2009 | |||||||||||
In Davis Landscape, Ltd., et al. v. Hertz Equipment Rental Corporation, the Court issued a Final Approval Order and Judgment in June 2013 giving final approval to the proposed class settlement that the court had preliminarily approved in March 2013. We have accrued our best estimate of the ultimate cost of the proposed class settlement which is not material to our financial condition, results of operations or cash flows. | 4 | California Tourism Assessments | (In Thousands) | ||||||||||||
In Fun Services of Kansas City, Inc., et al. v. Hertz Equipment Rental Corporation, the court issued a Final Approval Order in June 2013 giving final approval to the proposed class settlement which the court had preliminarily approved in January 2013. We have accrued our best estimate of the ultimate cost of the settlement, which is not material to our financial condition, results of operations or cash flows. | We are currently a defendant in a proceeding that purports to be a class action brought by Michael Shames and Gary Gramkow against The Hertz Corporation, Dollar Thrifty Automotive Group, Inc., Avis Budget Group, Inc., Vanguard Car Rental USA, Inc., Enterprise Rent-A-Car Company, Fox Rent A Car, Inc., Coast Leasing Corp., The California Travel and Tourism Commission, and Caroline Beteta. | On September 20, 2012, plaintiffs in Henzel v. Dollar Thrifty Automotive Group, Inc., et al. (Consolidated Case No. CJ-2010-02761, Dist. Ct. Tulsa County, Oklahoma) filed a dismissal without prejudice and have indicated they will not seek recovery of attorney fees. | Rent | $ | 48,682 | $ | 47,915 | $ | 49,543 | ||||||
In March 2013, the court in Janet Sobel, et al. v. The Hertz Corporation granted, in part, the plaintiffs' motion for partial summary judgment with respect to restitution and granted the plaintiffs' motion for class certification, while denying the Company's motion for partial summary judgment. The court further indicated that the plaintiffs are entitled to prejudgment interest from the date of the plaintiffs' first amended complaint. A judgment has still not been entered in the case and there are expected to be further proceedings before the district court. The amount of a judgment could potentially exceed $40 million. The Company intends to appeal or seek other appropriate relief and believes that the court's liability, damages and class certification findings will be reversed. We continue to believe the outcome of this case will not be material to our financial condition, results of operations or cash flows. | Originally filed in November of 2007, the action is pending in the United States District Court for the Southern District of California, and plaintiffs claim to represent a class of individuals or entities that purchased rental car services from a defendant at airports located in California after January 1, 2007. Plaintiffs allege that the defendants agreed to charge consumers a 2.5% tourism assessment and not to compete with respect to this assessment, while misrepresenting that this assessment is owed by consumers, rather than the rental car defendants, to the California Travel and Tourism Commission, or the “CTTC.” Plaintiffs also allege that defendants agreed to pass through to consumers a fee known as the Airport Concession Fee, which fee had previously been required to be included in the rental car defendants' individual base rates, without reducing their base rates. Based on these allegations, the amended complaint seeks treble damages, disgorgement, injunctive relief, interest, attorneys' fees and costs. Plaintiffs dropped their claims against Caroline Beteta. Plaintiffs' claims against the rental car defendants have been dismissed, except for the federal antitrust claim. In June 2010, the United States Court of Appeals for the Ninth Circuit affirmed the dismissal of the plaintiffs' antitrust case against the CTTC as a state agency immune from antitrust complaint because the California Legislature foresaw the alleged price‑fixing conspiracy that was the subject of the complaint. The plaintiffs subsequently filed a petition with the Ninth Circuit seeking a rehearing and that petition was granted. In November 2010, the Ninth Circuit withdrew its June opinion and instead held that state action immunity was improperly invoked. The Ninth Circuit reinstated the plaintiffs' antitrust claims and remanded the case to the district court for further proceedings. In May 2012, the district court issued an order preliminarily approving the settlement of this action; certifying a settlement class; certifying a class representative and lead counsel; and providing for class notice. In October 2012, the court held a final approval hearing. In November 2012, the court issued an order of final approval of the settlement of this action. One of the objectors to the settlement has filed a notice of appeal of this order with the United States Court of Appeals for the Ninth Circuit. We have accrued our best estimate of the ultimate cost which is not material to our financial condition. | Concession expenses: | |||||||||||||
Aside from the above mentioned, none of the other legal proceedings described in our Form 10-K have experienced any material changes. | On September 21, 2012, plaintiffs in Re: Dollar Thrifty Shareholder Litigation (Consolidated Case No. 5458-VCS, Delaware Court of Chancery) filed a stipulation and proposed order and proposed final judgment, which, if approved by the Court upon notice to the certified class, would dismiss the case as moot and without payment of attorney fees. The hearing on the proposed dismissal is scheduled in November 2012. | Minimum fees | 107,095 | 102,080 | 101,938 | ||||||||||
In addition to the above mentioned and those described in our Form 10-K or in our other filings with SEC, various other legal actions, claims and governmental inquiries and proceedings are pending or may be instituted or asserted in the future against us and our subsidiaries. Other than with respect to the aggregate claims for public liability and property damage pending against us, management, based on the advice of legal counsel, does not believe that any of the matters resolved, or pending against us, are material to us and our subsidiaries taken as a whole. | 5 | Public Liability and Property Damage | Contingent fees | 27,144 | 31,711 | 32,263 | |||||||||
We have established reserves for matters where we believe that the losses are probable and reasonably estimated. Other than with respect to the aggregate reserve established for claims for public liability and property damage, none of those reserves are material. For matters where we have not established a reserve, 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 the outcome of the individual litigated matters is not predictable with assurance. It is possible that certain of the actions, claims, inquiries or proceedings, including those discussed in our Form 10-K or in our other filings with SEC, could be decided unfavorably to us or any of our 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 our consolidated financial condition, results of operations or cash flows in any particular reporting period. | We are currently a defendant in numerous actions and have received numerous claims on which actions have not yet been commenced for public liability and property damage arising from the operation of motor vehicles and equipment rented from us. The obligation for public liability and property damage on self-insured U.S. and international vehicles and equipment, as stated on our balance sheet, 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. At December 31, 2012 and December 31, 2011 our liability recorded for public liability and property damage matters was $332.2 million and $281.5 million, respectively. We believe that our analysis is based on the most relevant information available, combined with reasonable assumptions, and that we may prudently rely on this information to determine the estimated liability. We note the liability is subject to significant uncertainties. The adequacy of the liability reserve is regularly monitored based on evolving accident claim history and insurance related state legislation changes. If our estimates change or if actual results differ from these assumptions, the amount of the recorded liability is adjusted to reflect these results. | Aside from the above and the item discussed in Note 15, none of the other legal proceedings described in the Company's Form 10-K have experienced material changes. | |||||||||||||
We intend to assert that we have meritorious defenses in the foregoing matters and we intend to defend ourselves vigorously. | 182,921 | 181,706 | 183,744 | ||||||||||||
We have established reserves for matters where we believe that the losses are probable and reasonably estimated, including for various of the matters set forth above. Other than with respect to the aggregate reserves established for claims for public liability and property damage, none of those reserves are material. For matters, including those described above, where we have not established a reserve, 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 the outcome of the individual litigated matters is not predictable with assurance. It is possible that certain of the actions, claims, inquiries or proceedings, including those discussed above, could be decided unfavorably to us or any of our 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 our consolidated financial condition, results of operations or cash flows in any particular reporting period. | Various legal actions, claims and governmental inquiries and proceedings have been in the past, or may be in the future, asserted or instituted against the Company, including other purported class actions or proceedings relating to the Hertz transaction terminated in October 2010 and some that may demand large monetary damages or other relief which could result in significant expenditures. The Company is also subject to potential liability related to environmental matters. The Company establishes reserves for litigation and environmental matters when the loss is probable and reasonably estimable. It is reasonably possible that the final resolution of some of these matters may require the Company to make expenditures in excess of established reserves, over an extended period of time and in a range of amounts that cannot be reasonably estimated. The term "reasonably possible" is used herein to mean that the chance of a future transaction or event occurring is more than remote but less than probable. The Company evaluates developments in its legal matters that could affect the amount of previously accrued reserves and makes adjustments as appropriate. Significant judgment is required to determine both likelihood of a further loss and the estimated amount of the loss. With respect to outstanding litigation and environmental matters, based on current knowledge, the Company believes that the amount or range of reasonably possible loss will not, either individually or in the aggregate, have a material adverse effect on its business or consolidated financial statements. However, the outcome of such legal matters is inherently unpredictable and subject to significant uncertainties. | Less sublease rental income | (498 | ) | (574 | ) | (785 | ) | |||||||
Off-Balance Sheet Commitments | |||||||||||||||
As of December 31, 2012 and December 31, 2011, the following guarantees (including indemnification commitments) were issued and outstanding. | Other | Total | $ | 182,423 | $ | 181,132 | $ | 182,959 | |||||||
Indemnification Obligations | |||||||||||||||
In the ordinary course of business, we execute 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. We regularly evaluate the probability of having to incur costs associated with these indemnification obligations and have accrued for expected losses that are probable and estimable. The types of indemnification obligations for which payments are possible include the following: | In June 2012, the Company executed a vehicle supply agreement with Chrysler Group LLC ("Chrysler Group") for a three-year term beginning with program year 2013 (August 1, 2012) and ending at the end of program year 2015 (July 31, 2015), that will allow the Company to source a portion of its vehicle purchases, with certain minimum volumes, through Chrysler Group. Volume requirements may be modified by mutual agreement between the Company and Chrysler Group. | ||||||||||||||
Sponsors; Directors | Future minimum rentals and fees under noncancelable operating leases and the Company's obligations for minimum airport concession fees at December 31, 2011 are presented in the following table: | ||||||||||||||
We have entered into customary indemnification agreements with Hertz Holdings, the Sponsors and Hertz Holdings' stockholders affiliated with the Sponsors, pursuant to which Hertz Holdings and Hertz will indemnify the Sponsors, Hertz Holdings' stockholders affiliated with the Sponsors and their respective affiliates, directors, officers, partners, members, employees, agents, representatives and controlling persons, against certain liabilities arising out of performance of a consulting agreement with Hertz Holdings and each of the Sponsors and certain other claims and liabilities, including liabilities arising out of financing arrangements or securities offerings. Hertz Holdings also entered into indemnification agreements with each of its directors. We do not believe that these indemnifications are reasonably likely to have a material impact on us. | |||||||||||||||
Environmental | |||||||||||||||
We have 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 we may be held responsible could be substantial. The probable expenses that we expect to incur for such matters have been accrued, and those expenses are reflected in our condensed consolidated financial statements. As of December 31, 2012 and December 31, 2011, the aggregate amounts accrued for environmental liabilities including liability for environmental indemnities, reflected in our condensed consolidated balance sheets in "Accrued liabilities" were $2.6 million and $1.5 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 we ultimately may be responsible cannot be reasonably estimated because of uncertainties with respect to factors such as our 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). | Company-Owned | Operating | Total | ||||||||||||
Stores | Leases | ||||||||||||||
Concession Fees | |||||||||||||||
(In Thousands) | |||||||||||||||
2012 | $ | 98,351 | $ | 40,429 | $ | 138,780 | |||||||||
2013 | 85,594 | 32,866 | 118,460 | ||||||||||||
2014 | 62,120 | 25,323 | 87,443 | ||||||||||||
2015 | 43,908 | 20,221 | 64,129 | ||||||||||||
2016 | 37,088 | 17,290 | 54,378 | ||||||||||||
Thereafter | 130,771 | 48,333 | 179,104 | ||||||||||||
457,832 | 184,462 | 642,294 | |||||||||||||
Less sublease rental income | — | (895 | ) | (895 | ) | ||||||||||
$ | 457,832 | $ | 183,567 | $ | 641,399 | ||||||||||
Vehicle Insurance Reserves | |||||||||||||||
The Company is self insured for a portion of vehicle insurance claims. In 2011, 2010 and 2009, the Company retained risk of loss up to $7.5 million, in each year, per occurrence for public liability and property damage claims, including third-party bodily injury and property damage. The Company maintains insurance for losses above these levels. The Company retains the risk of loss on SLI policies sold to vehicle rental customers. | |||||||||||||||
The Company records reserves for its public liability and property damage exposure using actuarially-based loss estimates, which are updated semi-annually in June and December of each year. In June 2011, the Company began semi-annual updates for SLI, as such reserves had been previously updated on an annual basis in December. As a result of favorable overall claims loss development experienced in 2011 and 2010, the Company recorded favorable insurance reserve adjustments, which effectively represents revision to previous estimates of vehicle insurance charges, of $32.2 million and $13.4 million during 2011 and 2010, respectively. This favorable claims development is driven by changes in loss development factors as a result of favorable claims development trends resulting from specific actions taken by the Company to lower its overall insurance costs. Those steps included, among others, closing a significant number of local market locations and raising acceptable credit scores for eligible customers in order to reduce the likelihood of adverse selection in certain markets. Additionally, the Company has implemented drivers' license validation procedures and requires examinations under oath in order to reduce the risk of fraud and personal injury claims in certain markets. | |||||||||||||||
The accrual for Vehicle Insurance Reserves includes amounts for incurred and incurred but not reported losses. Such liabilities are based on actuarially determined estimates and management believes that the amounts accrued are adequate. At December 31, 2011 and 2010, the public liability and property damage amounts have been discounted at 0.4% and 1.0% (assumed risk free rate), respectively, based upon the actuarially determined estimated timing of payments to be made in future years. Discounting resulted in reducing the accrual for public liability and property damage by $0.4 million and $1.3 million at December 31, 2011 and 2010, respectively. SLI amounts are not discounted. Estimated future payments of Vehicle Insurance Reserves as of December 31, 2011 are as follows (in thousands): | |||||||||||||||
2012 | $ | 21,220 | |||||||||||||
2013 | 15,314 | ||||||||||||||
2014 | 7,037 | ||||||||||||||
2015 | 4,617 | ||||||||||||||
2016 | 2,995 | ||||||||||||||
Thereafter | 3,508 | ||||||||||||||
Aggregate undiscounted public liability and property damage | 54,691 | ||||||||||||||
Effect of discounting | (375 | ) | |||||||||||||
Public liability and property damage, net of discount | 54,316 | ||||||||||||||
Supplemental liability insurance | 32,199 | ||||||||||||||
Total vehicle insurance reserves | $ | 86,515 | |||||||||||||
Contingencies | |||||||||||||||
Various class action complaints relating to the now terminated proposed merger transaction with Hertz Global Holdings, Inc. ("Hertz") have been filed in Oklahoma state court, Oklahoma federal court, and Delaware Chancery Court against the Company, its directors, and Hertz by various plaintiffs, for themselves and on behalf of the Company's stockholders, excluding defendants and their affiliates. These complaints allege that the consideration the Company's stockholders would have received in connection with the proposed transaction with Hertz is inadequate and that the Company's directors breached their fiduciary duties to stockholders in negotiating and approving the merger agreement. These complaints also allege that the proxy materials that were sent to the Company's stockholders to approve the merger agreement are materially false and misleading. The cases and their current status are as follows: 1) Henzel v. Dollar Thrifty Automotive Group, Inc., et al. (Consolidated Case No. CJ-2010-02761, Dist. Ct. Tulsa County, Oklahoma)—this case has not been dismissed but is currently inactive and 2) In Re: Dollar Thrifty Shareholder Litigation (Consolidated Case No. 5458-VCS, Delaware Court of Chancery)—on October 18, 2011, plaintiffs sought permission to amend their pleadings to assert additional claims that members of the Company's board of directors (the "Board") breached their fiduciary duties concerning the following matters: (a) the Board's response to a merger proposal by Avis Budget Group, Inc. ("Avis Budget") in September 2010; (b) the Board's use of defensive measures, including the adoption of a poison pill, in response to the Exchange Offer made by Hertz; (c) the Board's response to the failure of Hertz to submit an improved final offer meeting certain Board criteria by October 10, 2011; and (d) the Board's alleged failure to make full material disclosures to the Company's stockholders concerning the Hertz offer, the Company's stand-alone plan, and the Company's negotiations with Hertz regarding a business combination. The court has not ruled on the plaintiffs' request to amend. On November 1, 2011, the plaintiffs advised the court that the parties have agreed to stay further activity pending the outcome of the Hertz antitrust review process. | |||||||||||||||
The Company is a defendant in several class action lawsuits in California and one in Colorado. The California lawsuits allege that the pass through of the California trade and tourism commission and airport concession fees violate antitrust laws and various other rights and laws by compelling out-of-state visitors to subsidize the passenger car rental tourism assessment program, violation of the California Business and Professions Code breach of contract. The Company has accrued a contingency related to the preliminary settlement. | |||||||||||||||
The Colorado lawsuit alleges violation of the Colorado Consumer Protection Act. The lawsuit in Colorado was dismissed with prejudice in July 2010 and the plaintiffs filed a notice of appeal in August 2010. Appellate briefing was completed on May 16, 2011 and oral argument on the appeal occurred on December 6, 2011, and the parties are awaiting a ruling. The Company intends to vigorously defend these matters. Given the inherent uncertainties of litigation, the Company cannot predict the ultimate outcome or reasonably estimate the amount of ultimate loss that may arise from these lawsuits. | |||||||||||||||
Various other legal actions, claims and governmental inquiries and proceedings have been in the past, or may be in the future, asserted or instituted against the Company, including other purported class actions or proceedings relating to the Hertz transaction terminated in October 2010 or a potential acquisition transaction, and some that may demand large monetary damages or other relief which could result in significant expenditures. Litigation is subject to many uncertainties and is inherently unpredictable. The Company is also subject to potential liability related to environmental matters. The Company establishes reserves for litigation and environmental matters when the loss is probable and reasonably estimable. It is reasonably possible that the final resolution of some of these matters may require the Company to make expenditures in excess of established reserves. The term "reasonably possible" is used herein to mean that the chance of a future transaction or event occurring is more than remote but less than probable. The Company evaluates developments in its legal matters that could affect the amount of previously accrued reserves and makes adjustments as appropriate. Significant judgment is required to determine both likelihood of a further loss and the estimated amount of the loss. With respect to outstanding litigation and environmental matters, based on current knowledge, the Company believes that the amount or range of reasonably possible loss will not, either individually or in the aggregate, have a material adverse effect on its business or consolidated financial statements. However, the outcome of such legal matters is inherently unpredictable and subject to significant uncertainties. | |||||||||||||||
Other | |||||||||||||||
On April 4, 2011, the Company and HP Enterprise Services, LLC ("HP") entered into a three and one-half year data processing service agreement (the "Service Agreement"), which requires annual payments of approximately $20 million for 2012 and 2013 and approximately $10 million for 2014. The Company also has a telecommunications contract which will require annual payments totaling $1.2 million for 2012. Additionally, the Company has software and hardware maintenance agreements which require annual payments totaling approximately $2.1 million and $1.5 million for 2012 and 2013, respectively. | |||||||||||||||
In addition to the letters of credit described in Note 8, the Company had letters of credit totaling $4.0 million and $5.5 million at December 31, 2011 and 2010, respectively, which are primarily used to support insurance programs and airport concession obligations in Canada. The Company may also provide guarantees on behalf of franchisees to support compliance with airport concession bids. Non-performance of the obligation by the franchisee would trigger the obligation of the Company. At December 31, 2011, there were no such guarantees on behalf of franchisees. | |||||||||||||||
At December 31, 2011, the Company had outstanding vehicle purchase commitments of approximately $1.3 billion over the next 12 months. | |||||||||||||||
NEW_ACCOUNTING_STANDARDS_DOLLA
NEW ACCOUNTING STANDARDS - DOLLAR THRIFTY (Dollar Thrifty Automotive Group Inc) | 9 Months Ended |
Sep. 30, 2012 | |
Dollar Thrifty Automotive Group Inc | |
NEW ACCOUNTING STANDARDS | 13. NEW ACCOUNTING STANDARDS |
In May 2011, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2011-04, "Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRS" ("ASU 2011-04"), which amends U.S. GAAP to converge U.S. GAAP and International Financial Reporting Standards by changing the wording used to describe many of the requirements in U.S. GAAP for measuring fair value and for disclosing information about fair value measurements. ASU 2011-04 is effective for interim and annual periods beginning after December 15, 2011. The Company adopted ASU 2011-04 on January 1, 2012, as required (see Note 9 for required disclosures). | |
In June 2011, the FASB issued ASU 2011-05, "Comprehensive Income—Presentation of Comprehensive Income" ("ASU 2011-05"). ASU 2011-05 eliminates the option to present the components of other comprehensive income as part of the statement of stockholders' equity. It requires an entity to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. In December 2011, the FASB issued ASU 2011-12, "Comprehensive Income—Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in ASU 2011-05" ("ASU 2011-12") to defer the effective date of the specific requirement to present items that are reclassified out of accumulated other comprehensive income to net income alongside their respective components of net income and other comprehensive income. All other provisions of this update, which are to be applied retrospectively, are effective for fiscal years, and interim periods within those years, beginning after December 15, 2011. The Company adopted ASU 2011-05 and ASU 2011-12 on January 1, 2012, as required (see condensed consolidated statements of comprehensive income and Note 10 for required disclosures). | |
In December 2011, the FASB issued ASU 2011-11, "Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities" ("ASU 2011-11") to amend the requirement for an entity to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. An entity should provide the disclosures required by those amendments retrospectively for all comparative periods presented. ASU 2011-11 is effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. The Company plans to adopt ASU 2011-11 on January 1, 2013, as required, but does not believe this guidance will have a significant impact on the Company's consolidated financial statements. | |
PROPOSED_ACQUISITION_AND_RELAT
PROPOSED ACQUISITION AND RELATED MATTERS - DOLLAR THRIFTY (Dollar Thrifty Automotive Group Inc) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2012 | Dec. 31, 2011 | |
Dollar Thrifty Automotive Group Inc | ||
PROPOSED ACQUISITION AND RELATED MATTERS | 14. PROPOSED ACQUISITION AND RELATED MATTERS | 17. PROPOSED ACQUISITION AND RELATED MATTERS |
On August 26, 2012, the Company entered into an Agreement and Plan of Merger (the "Merger Agreement") with Hertz Global Holdings, Inc. ("Hertz") and HDTMS, Inc., a wholly owned subsidiary of Hertz ("Merger Sub"). Subject to the terms and conditions of the Merger Agreement, which has been approved by the boards of directors of both Hertz and the Company, following consummation of the Offer (hereinafter defined) and subject to the approval of the Company's stockholders if required by applicable law, Merger Sub will be merged (the "Merger") with and into the Company, with the Company becoming a wholly owned subsidiary of Hertz. | In late February 2011, the Company submitted its certification of substantial compliance with the Second Request of the U.S. Federal Trade Commission ("FTC") relating to a potential acquisition of the Company by Avis Budget. | |
The Merger Agreement provides that the acquisition will be effected first through a tender offer by Merger Sub (the "Offer") to acquire all of the outstanding shares of common stock, par value $0.01 per share, of the Company (the "Shares") for $87.50 per Share (the "Offer Price"), net to the seller in cash and without any interest thereon, followed by the second-step Merger. | On May 9, 2011, Hertz announced its plans to commence an exchange offer to acquire the Company. On May 24, 2011, HDTMS, Inc., a wholly owned subsidiary of Hertz, commenced an exchange offer to exchange each of the issued and outstanding shares of the Company's common stock for (i) $57.60 in cash, without interest and less any required withholding taxes, and (ii) 0.8546 shares of common stock, par value $0.01 per share, of Hertz common stock (the "Exchange Offer"). The Exchange Offer had an expiration date of July 8, 2011; however, Hertz extended the Exchange Offer through November 1, 2011. On October 27, 2011, Hertz announced that it was withdrawing its Exchange Offer for all outstanding shares of the Company, in light of the Company's plan to commence its announced share repurchase program and current market conditions. However, Hertz noted that they remain interested in acquiring the Company and remain engaged with the FTC to secure antitrust clearance for a proposed transaction. | |
Subject to the terms and conditions of the Merger Agreement, the Company has granted Merger Sub an irrevocable one-time option (the "Top-Up Option") to purchase, at a price per Share equal to the Offer Price, an aggregate number of newly issued Shares that, when added to the number of Shares owned by Hertz and its subsidiaries, including Merger Sub, at the time of such exercise, constitutes one Share more than 90% of the Shares then outstanding immediately after the issuance of the Top-Up Option Shares on a fully diluted basis, subject to there being no legal restraint and sufficient authorized Shares available for issuance. The Top-Up Option is exercisable only after Shares have been accepted for payment pursuant to the Offer and Merger Sub irrevocably committing to effect the second-step Merger as soon as practicable after the exercise of the Top-Up Option. | On August 21, 2011, the Company issued a letter advising Hertz and Avis Budget of the Company's intention to solicit for submission in early October 2011 best and final definitive proposals regarding a potential business combination. In its letter, the Company stated that any proposal that did not eliminate the antitrust regulatory risk of the transaction for its shareholders would not likely be acceptable. In conjunction with the Company's request for final proposals regarding a potential business combination on September 14, 2011, Avis Budget announced that it would not participate in a bid to buy the Company, citing current market conditions. | |
The consummation of the Offer is subject to certain conditions, including among others, the following: (1) the Company's stockholders shall have validly tendered in the Offer the number of Shares which, when taken together with any Shares owned by Hertz and its subsidiaries, represents a majority of the outstanding Shares on a fully diluted basis and (2) the expiration or early termination of the applicable waiting periods required pursuant to the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the "HSR Act"). The Offer and the other transactions contemplated by the Merger Agreement are not subject to any financing condition. | As of October 10, 2011, the Company had not received any proposals meeting this criterion and announced that it has formally concluded its process to solicit definitive proposals regarding a potential business combination. Consequently, the Company has terminated its solicitation process and will continue to execute its current stand-alone plan. | |
The Merger Agreement also provides that, with respect to obtaining antitrust approval of the acquisition, Hertz is required to: (1) divest its Advantage brand, together with certain additional assets and airport concessions pursuant to a proposed consent agreement currently under discussion between Hertz and the Federal Trade Commission (the "FTC"), (2) take other actions which, individually or in the aggregate, are of a de minimis nature and (3) contest any administrative or judicial action or proceeding challenging the acquisition while the Merger Agreement is in effect. At any time after December 31, 2012, both the Company and Hertz may terminate the Merger Agreement if the FTC has not preliminarily accepted the proposed consent agreement and the waiting period under the HSR Act has not expired or been terminated. | Pending litigation relating to the now terminated merger agreement is described in Note 14. | |
The Merger Agreement includes customary termination provisions for both the Company and Hertz and provides that, in connection with the termination of the Merger Agreement, under certain circumstances, the Company and Hertz must reimburse the other party for its transaction expenses, subject to certain limitations. | ||
Effective August 26, 2012, prior to the execution of the Merger Agreement, the Company's board of directors approved a Second Amendment to Rights Agreement (the "Amendment"), dated as of August 26, 2012, amending the Rights Agreement ("Rights Agreement") between the Company and Computershare Trust Company, N.A., as rights agent, dated as of May 18, 2011 and amended on February 17, 2012. | ||
The Amendment, among other things, renders the Rights Agreement inapplicable to the Merger, the Offer, the Merger Agreement and the transactions contemplated thereby. The Amendment provides that the execution and delivery of the Merger Agreement, the consummation of the Offer, the Merger and the other transactions contemplated by the Merger Agreement will not be deemed to result in either Hertz or Merger Sub or any of their respective affiliates or associates becoming an "Acquiring Person" (as such term is defined in the Rights Agreement). In addition, the Amendment provides that none of a "Share Acquisition Date," a "Distribution Date," a "Flip-in Event" or a "Flip-over Event" (each as defined in the Rights Agreement) shall occur, and that the "Rights" (as defined in the Rights Agreement) will not separate from the Shares, in each case, by reason of the execution and delivery of the Merger Agreement, the consummation of the Offer, the Merger or the other transactions contemplated by the Merger Agreement. The Amendment also provides that the Rights Agreement shall terminate and all outstanding Rights shall expire immediately prior to the Acceptance Time (as defined in the Merger Agreement), but only if the Acceptance Time shall have occurred. If the Merger Agreement is subsequently terminated, the changes to the Rights Agreement pursuant to the Amendment will be of no further force and effect. | ||
On September 10, 2012, Hertz filed with the SEC a tender offer statement on Schedule TO and the Company filed with the SEC a Solicitation/Recommendation Statement on Schedule 14D-9 regarding the Offer. The Offer originally had an expiration date of October 5, 2012; however, Hertz extended the Offer, which will now expire on November 16, 2012, unless further extended. | ||
SUBSEQUENT_EVENTS_DOLLAR_THRIF
SUBSEQUENT EVENTS - DOLLAR THRIFTY | 6 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended |
Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | |
Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | |||
SUBSEQUENT EVENTS | Subsequent Events | Subsequent Events | 15. SUBSEQUENT EVENTS | 18. SUBSEQUENT EVENTS |
On July 31, 2013, Hertz entered into a supplement to the Senior ABL Facility to permit aggregate maximum borrowings of $1,865.0 million (subject to borrowing base availability). | On January 23, 2013, Hertz Vehicle Financing LLC, or ‘‘HVF,’’ an insolvency remote, direct, wholly-owned, special purpose subsidiary of Hertz, completed the issuance of $950.0 million in aggregate principal amount of three year and five year Series 2013-1 Rental Car Asset Backed Notes, Class A and Class B. The $282.75 million of three year Class A notes carry a 1.12% coupon, the $42.25 million of three year Class B notes carry a 1.86% coupon, the $543.75 million of five year Class A notes carry a 1.83% coupon, and the $81.25 million of five year Class B notes carry a 2.48% coupon. The three year notes and five year notes have expected final payment dates in August 2016 and August 2018, respectively. The Class B notes are subordinated to the Class A notes. | |||
The net proceeds from the sale of the notes will be, to the extent permitted by the applicable agreements, (i) used to pay the purchase price of vehicles acquired by HVF pursuant to HVF's U.S. ABS Program (as defined herein), (ii) used to pay the principal amount of other HVF U.S. ABS Program indebtedness that is then permitted or required to be paid or (iii) released to HVF to be distributed to Hertz or otherwise used by HVF for general purposes. | In preparing the accompanying condensed consolidated financial statements, the Company has reviewed events that have occurred after September 30, 2012 through the issuance of the financial statements. The Company noted no reportable subsequent events other than the subsequent events noted below. | In preparing the consolidated financial statements, the Company has reviewed events that have occurred after December 31, 2011 through the issuance of the financial statements. The Company noted no reportable subsequent events other than the subsequent events noted in Notes 8 and 13. | ||
In February 2013, Hertz caused its Brazilian operating subsidiary to amend the Brazilian Fleet Financing Facility to extend the maturity date from February 2013 to October 2013. | ||||
In October 2012, the Company executed a vehicle purchase agreement with General Motors LLC ("GM") for the 2013 program year that will allow the Company to source through GM a portion of its vehicle purchases, subject to certain minimum volumes and to requirements applicable to the mix of models purchased. Volume requirements may be modified by mutual agreement between the Company and GM. | ||||
In November 2012, the Court approved the final settlement, ordered the parties to effectuate the settlement agreement according to its terms and dismissed the case on the merits, all in the case of Michael Shames; Gary Gramkow, on behalf of themselves and on behalf of all persons similarly situated v. The Hertz Corporation, Dollar Thrifty Automotive Group, Inc., Avis Budget Group, Inc., Vanguard Car Rental USA, Inc., Enterprise Rent-A-Car Company, Fox Rent-A-Car, Inc., Coast Leasing Corp., The California Travel and Tourism Commission and Caroline Beteta (No. 07 CV 2174 H BLM (S.D. Cal.). | ||||
Recovered_Sheet3
GUARANTOR AND NON-GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - DOLLAR THRIFTY | 6 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GUARANTOR AND NON-GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS | Guarantor and Non-Guarantor Condensed Consolidating Financial Statements | Guarantor and Non-Guarantor Condensed Consolidating Financial Statements | 16. GUARANTOR AND NON-GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS | 19. GUARANTOR AND NON-GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The following condensed consolidating financial information presents the Condensed Consolidating Balance Sheets as of June 30, 2013 and December 31, 2012 and the Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) for the three and six month periods ended June 30, 2013 and 2012, and Statements of Cash Flows for the six months ended June 30, 2013 and 2012, of (a) The Hertz Corporation, (“the Company” or “the Parent”); (b) the Parent's subsidiaries that guarantee the Parent's indebtedness, or the Guarantor Subsidiaries; (c) the Parent's subsidiaries that do not guarantee the Parent's indebtedness, or the Non-Guarantor Subsidiaries; (d) elimination entries necessary to consolidate the Parent with the Guarantor Subsidiaries and Non-Guarantor Subsidiaries; and of (e) the Company on a consolidated basis. | The following condensed consolidating financial information presents the Condensed Consolidating Balance Sheets as of December 31, 2012 and 2011 and the Condensed Consolidating Statements of Operations, Comprehensive Income (Loss) and Cash Flows for the years ended December 31, 2012, 2011 and 2010, and Statements of Cash Flows for the years ended December 31, 2012, 2011 and 2010, of (a) The Hertz Corporation, (“the Company” or “the Parent”); (b) the Parent's subsidiaries that guarantee the Parent's indebtedness, or the Guarantor Subsidiaries; (c) the Parent's subsidiaries that do not guarantee the Parent's indebtedness, or the Non-Guarantor Subsidiaries; (d) elimination entries necessary to consolidate the Parent with the Guarantor Subsidiaries and Non-Guarantor Subsidiaries; and of (e) the Company on a consolidated basis. The Guarantor Subsidiaries are consistent with those entities which guaranteed the Company's existing indebtedness as of December 31, 2011 and December 31, 2010, with the exception of the Company's Simply Wheelz subsidiary which was sold in connection with the Advantage divestiture, as more fully described below, and therefore is not included as a guarantor of the debt in this Form 10-K. | In November 2012, the Company was acquired by a wholly owned indirect subsidiary of The Hertz Corporation ("THC"), a wholly owned subsidiary of Hertz Global Holdings, Inc. In February 2013 and March 2013, the Company and certain of its subsidiaries were added as guarantors under certain of THC's debt instruments and credit facilities. | In November 2012, the Company was acquired by a wholly owned indirect subsidiary of The Hertz Corporation ("THC"), a wholly owned subsidiary of Hertz Global Holdings, Inc. In February 2013 and March 2013, the Company and certain of its subsidiaries were added as guarantors under certain of THC's debt instruments and credit facilities. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
On December 12, 2012, pursuant to a consent agreement Hertz Holdings entered into with the Federal Trade Commission in connection with the Dollar Thrifty acquisition, we consummated the Advantage Divestiture. Prior to the Advantage Divestiture, Simply Wheelz, the legal entity associated with Advantage, had been included within these condensed consolidating financial statements as a Guarantor Subsidiary. The following condensed consolidating financial statements which include Simply Wheelz now reflects it as a Non-Guarantor Subsidiary for all periods presented. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
In February 2013 and March 2013, we added Dollar Thrifty and certain of its subsidiaries as guarantors under certain of our debt instruments and credit facilities. The following condensed consolidating financial statements now reflects the results of this change for all periods presented. | The following condensed consolidating financial information presents the Condensed Consolidating Balance Sheets as of September 30, 2012 and December 31, 2011, and the Condensed Consolidating Statements of Comprehensive Income for the nine month periods ended September 30, 2012 and 2011, and Condensed Consolidating Statements of Cash Flows for the nine month periods ended September 30, 2012 and 2011, of (a) the Company and those of its subsidiaries that guarantee the indebtedness of THC, or the Guarantor Subsidiaries; (b) the subsidiaries of the Company that do not guarantee THC's indebtedness, or the Non-Guarantor Subsidiaries; (c) elimination entries necessary to consolidate the Guarantor Subsidiaries with the Non-Guarantor Subsidiaries; and of (d) the Company and its subsidiaries on a consolidated basis. | The following condensed consolidating financial information presents the Condensed Consolidating Balance Sheet as of December 31, 2011, and the Condensed Consolidating Statement of Income for the twelve month period ended December 31, 2011, and Condensed Consolidating Statement of Cash Flows for the twelve month period ended December 31, 2011, of (a) the Company and those of its subsidiaries that guarantee the indebtedness of THC, or the Guarantor Subsidiaries; (b) the subsidiaries of the Company that do not guarantee THC's indebtedness, or the Non-Guarantor Subsidiaries; (c) elimination entries necessary to consolidate the Guarantor Subsidiaries with the Non-Guarantor Subsidiaries; and of (d) the Company and its subsidiaries on a consolidated basis. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments in subsidiaries are accounted for using the equity method for purposes of the consolidating presentation. The principal elimination entries relate to investments in subsidiaries and intercompany balances and transactions. Separate financial statements and other disclosures with respect to the Guarantor Subsidiaries have not been provided as management believes the following information is sufficient, as the Guarantor Subsidiaries are 100% owned by the Parent and all guarantees are full and unconditional and joint and several. Additionally, substantially all of the assets of the Guarantor Subsidiaries are pledged under the Senior Credit Facilities, and consequently will not be available to satisfy the claims of our general creditors. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments in subsidiaries are accounted for using the equity method for purposes of the consolidating presentation. The principal elimination entries relate to investments in subsidiaries and intercompany balances and transactions. Separate financial statements and other disclosures with respect to the Guarantor Subsidiaries have not been provided, as the Guarantor Subsidiaries are 100% owned by the Parent and all guarantees are full and unconditional and joint and several. Additionally, substantially all of the assets of the Guarantor Subsidiaries are pledged under the Senior Credit Facilities, and consequently will not be available to satisfy the claims of our general creditors. | CONDENSED CONSOLIDATING BALANCE SHEET | Investments in subsidiaries are accounted for using the equity method for purposes of the consolidating presentation. The principal elimination entries relate to investments in subsidiaries and intercompany balances and transactions. Separate financial statements and other disclosures with respect to the Guarantor Subsidiaries have not been provided, as the Guarantor Subsidiaries are 100% owned by THC and all guarantees are full and unconditional and joint and several. Additionally, substantially all of the assets of the Guarantor Subsidiaries are pledged under THC's Senior Credit Facilities, and consequently will not be available to satisfy the claims of THC's general creditors. | Investments in subsidiaries are accounted for using the equity method for purposes of the consolidating presentation. The principal elimination entries relate to investments in subsidiaries and intercompany balances and transactions. Separate financial statements and other disclosures with respect to the Guarantor Subsidiaries have not been provided, as the Guarantor Subsidiaries are 100% owned by THC and all guarantees are full and unconditional and joint and several. Additionally, substantially all of the assets of the Guarantor Subsidiaries are pledged under THC's Senior Credit Facilities, and consequently will not be available to satisfy the claims of THC's general creditors. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | 31-Dec-12 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
30-Jun-13 | (In Thousands of Dollars) | DOLLAR THRIFTY AUTOMOTIVE GROUP, INC. AND SUBSIDIARIES | DOLLAR THRIFTY AUTOMOTIVE GROUP, INC. AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In Millions of Dollars) | CONDENSED CONSOLIDATING BALANCE SHEET | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
30-Sep-12 | CONDENSED CONSOLIDATING BALANCE SHEET | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In Thousands of Dollars) | 31-Dec-11 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | (In Thousands of Dollars) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | (The Hertz | Subsidiaries | Guarantor | Corporation & | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | Corporation) | Subsidiaries | Subsidiaries | Guarantor | Non- | Eliminations | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | ASSETS | Subsidiaries | Guarantor | Consolidated | Guarantor | Non- | Eliminations | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ASSETS | Cash and cash equivalents | $ | 24,602 | $ | 2,578 | $ | 506,055 | $ | — | $ | 533,235 | Subsidiaries | Subsidiaries | Guarantor | Consolidated | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 87.5 | $ | 24.5 | $ | 371 | $ | — | $ | 483 | ASSETS | Subsidiaries | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted cash and cash equivalents | 32,681 | 14,535 | 524,418 | — | 571,634 | Cash and cash equivalents | $ | 402,243 | $ | 54,626 | $ | — | $ | 456,869 | ASSETS | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted cash and cash equivalents | 33.7 | 17 | 342.5 | — | 393.2 | Restricted cash and investments | 6,185 | 243,959 | — | 250,144 | Cash and cash equivalents | $ | 446,239 | $ | 62,409 | $ | — | $ | 508,648 | |||||||||||||||||||||||||||||||||||||||||||||||||
Receivables, less allowance for doubtful accounts | 544,454 | 292,467 | 1,049,675 | — | 1,886,596 | Receivables, net | 86,835 | 69,618 | (28,236 | ) | 128,217 | Restricted cash and investments | 1,355 | 351,910 | — | 353,265 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables, less allowance for doubtful accounts | 500.8 | 482.1 | 719.3 | (46.2 | ) | 1,656.00 | Intercompany | (92,323 | ) | 147,270 | (54,947 | ) | — | Receivables, net | 86,184 | 34,294 | (25,118 | ) | 95,360 | |||||||||||||||||||||||||||||||||||||||||||||||||
Due from Hertz affiliate | 1,047,986 | 59,181 | 2,199,247 | (3,293,605 | ) | 12,809 | Prepaid expenses and other assets | 59,770 | 13,409 | (1,199 | ) | 71,980 | Intercompany | (100,436 | ) | 154,999 | (54,563 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Due from Hertz affiliate | 1,042.70 | 1,842.70 | 3,691.70 | (6,576.3 | ) | 0.8 | Revenue-earning vehicles, net | 24,629 | 1,850,978 | — | 1,875,607 | Prepaid expenses and other assets | 49,163 | 20,503 | (3,707 | ) | 65,959 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories, at lower cost or market | 24,422 | 34,101 | 47,205 | — | 105,728 | Property and equipment, net | 76,208 | 1,679 | — | 77,887 | Revenue-earning vehicles, net | 33,057 | 1,434,778 | — | 1,467,835 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories, at lower cost or market | 30.8 | 39.8 | 57.7 | — | 128.3 | Investment in subsidiaries | 825,502 | — | (825,502 | ) | — | Property and equipment, net | 82,588 | 1,690 | — | 84,278 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Prepaid expenses and other assets | 2,570,539 | 183,573 | 203,678 | (2,496,288 | ) | 461,502 | Income taxes receivable | 4,364 | 89 | — | 4,453 | Investment in subsidiaries | 581,003 | — | (581,003 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Prepaid expenses and other assets | 2,894.70 | 244.3 | 407.2 | (2,783.0 | ) | 763.2 | Software, net | 19,438 | — | — | 19,438 | Income taxes receivable | 18,702 | 84 | — | 18,786 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue earning equipment, net | 104,207 | 1,734,325 | 11,069,804 | — | 12,908,336 | Software, net | 21,535 | — | — | 21,535 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue earning equipment, net | 175.3 | 1,893.00 | 13,637.70 | — | 15,706.00 | Total assets | $ | 1,412,851 | $ | 2,381,628 | $ | (909,884 | ) | $ | 2,884,595 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and equipment, net | 865,694 | 206,332 | 364,360 | — | 1,436,386 | Total assets | $ | 1,219,390 | $ | 2,060,667 | $ | (664,391 | ) | $ | 2,615,666 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and equipment, net | 897.6 | 315.1 | 252.9 | — | 1,465.60 | LIABILITIES AND EQUITY | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment in subsidiaries, net | 6,964,916 | 506,123 | — | (7,471,039 | ) | — | LIABILITIES: | LIABILITIES AND EQUITY | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment in subsidiaries, net | 6,833.10 | 1,367.90 | — | (8,201.0 | ) | — | Accounts payable | $ | 44,288 | $ | 3,484 | $ | (3 | ) | $ | 47,769 | LIABILITIES: | |||||||||||||||||||||||||||||||||||||||||||||||||||
Other intangible assets, net | 74,606 | 2,352,342 | 1,605,163 | — | 4,032,111 | Accrued liabilities | 161,841 | 4,157 | (29,432 | ) | 136,566 | Accounts payable | $ | 45,827 | $ | 8,573 | $ | (23 | ) | $ | 54,377 | |||||||||||||||||||||||||||||||||||||||||||||||
Other intangible assets, net | 70.2 | 3,848.10 | 50.2 | — | 3,968.50 | Income tax payable / (receivable) | — | — | — | — | Accrued liabilities | 148,820 | 4,167 | (28,802 | ) | 124,185 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill | 106,210 | 133,923 | 1,101,739 | — | 1,341,872 | Deferred income taxes | 391,431 | 1,093 | — | 392,524 | Income tax payable / (receivable) | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill | 106.2 | 1,035.60 | 224.5 | — | 1,366.30 | Vehicle insurance reserves | 71,050 | 11,308 | — | 82,358 | Deferred income taxes | 341,408 | 1,554 | — | 342,962 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 12,360,317 | $ | 5,519,480 | $ | 18,671,344 | $ | (13,260,932 | ) | $ | 23,290,209 | Debt and other obligations | — | 1,536,084 | (54,947 | ) | 1,481,137 | Vehicle insurance reserves | 75,663 | 10,852 | — | 86,515 | ||||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 12,672.60 | $ | 11,110.10 | $ | 19,754.70 | $ | (17,606.5 | ) | $ | 25,930.90 | Debt and other obligations | — | 1,454,518 | (54,563 | ) | 1,399,955 | |||||||||||||||||||||||||||||||||||||||||||||||||||
LIABILITIES AND EQUITY | Total liabilities | 668,610 | 1,556,126 | (84,382 | ) | 2,140,354 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LIABILITIES AND EQUITY | Total liabilities | 611,718 | 1,479,664 | (83,388 | ) | 2,007,994 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Due to Hertz affiliate | $ | 2,254,223 | $ | 628,275 | $ | 411,107 | $ | (3,293,605 | ) | $ | — | COMMITMENTS AND CONTINGENCIES | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Due to Hertz affiliate | $ | 2,097.10 | $ | 2,498.80 | $ | 1,980.40 | $ | (6,576.3 | ) | $ | — | EQUITY | 744,241 | 825,502 | (825,502 | ) | 744,241 | COMMITMENTS AND CONTINGENCIES | ||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts payable | 239,247 | 157,742 | 602,072 | — | 999,061 | EQUITY: | 607,672 | 581,003 | (581,003 | ) | 607,672 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts payable | 165.2 | 267.9 | 1,051.40 | — | 1,484.50 | Total liabilities and equity | $ | 1,412,851 | $ | 2,381,628 | $ | (909,884 | ) | $ | 2,884,595 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued liabilities | 605,680 | 84,992 | 487,788 | — | 1,178,460 | Total liabilities and equity | $ | 1,219,390 | $ | 2,060,667 | $ | (664,391 | ) | $ | 2,615,666 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued liabilities | 642.7 | 242.2 | 343.6 | (46.2 | ) | 1,182.30 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued taxes | 54,357 | 11,511 | 1,003,127 | (901,681 | ) | 167,314 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued taxes | 60.3 | 33.9 | 1,335.00 | (1,245.6 | ) | 183.6 | DOLLAR THRIFTY AUTOMOTIVE GROUP, INC. AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | 6,190,040 | 49,445 | 8,774,989 | — | 15,014,474 | CONDENSED CONSOLIDATING BALANCE SHEET | DOLLAR THRIFTY AUTOMOTIVE GROUP, INC. AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | 7,042.30 | 68.5 | 10,283.40 | — | 17,394.20 | 31-Dec-11 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Public liability and property damage | 99,261 | 10,390 | 222,581 | — | 332,232 | (In Thousands of Dollars) | CONDENSED CONSOLIDATING STATEMENT OF INCOME | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Public liability and property damage | 93 | 58.5 | 176 | — | 327.5 | FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2011 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred taxes on income | — | 1,776,199 | 2,499,548 | (1,594,607 | ) | 2,681,140 | (In Thousands of Dollars) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred taxes on income | — | 2,232.70 | 2,091.50 | (1,537.4 | ) | 2,786.80 | Guarantor | Non- | Eliminations | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities | 9,442,808 | 2,718,554 | 14,001,212 | (5,789,893 | ) | 20,372,681 | Subsidiaries | Guarantor | Consolidated | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities | 10,100.60 | 5,402.50 | 17,261.30 | (9,405.5 | ) | 23,358.90 | Subsidiaries | Guarantor | Non- | Eliminations | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity: | ASSETS | Subsidiaries | Guarantor | Consolidated | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity: | Cash and cash equivalents | $ | 446,239 | $ | 62,409 | $ | — | $ | 508,648 | Subsidiaries | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The Hertz Corporation and Subsidiaries stockholder's equity | 2,917,509 | 2,800,926 | 4,670,113 | (7,471,039 | ) | 2,917,509 | Restricted cash and investments | 1,355 | 351,910 | — | 353,265 | Total revenues | $ | 1,480,660 | $ | 436,441 | $ | (368,173 | ) | $ | 1,548,928 | |||||||||||||||||||||||||||||||||||||||||||||||
The Hertz Corporation and Subsidiaries stockholder's equity | 2,572.00 | 5,707.60 | 2,493.40 | (8,201.0 | ) | 2,572.00 | Receivables, net | 86,184 | 34,294 | (25,118 | ) | 95,360 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interest | — | — | 19 | — | 19 | Intercompany | (100,436 | ) | 154,999 | (54,563 | ) | — | COSTS AND EXPENSES: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interest | — | — | — | — | — | Prepaid expenses and other assets | 49,163 | 20,503 | (3,707 | ) | 65,959 | Direct vehicle and operating | 708,477 | 51,008 | (8,017 | ) | 751,468 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total equity | 2,917,509 | 2,800,926 | 4,670,132 | (7,471,039 | ) | 2,917,528 | Revenue-earning vehicles, net | 33,057 | 1,434,778 | — | 1,467,835 | Vehicle depreciation and lease charges, net | 378,898 | 251,526 | (359,467 | ) | 270,957 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total equity | 2,572.00 | 5,707.60 | 2,493.40 | (8,201.0 | ) | 2,572.00 | Property and equipment, net | 82,588 | 1,690 | — | 84,278 | Selling, general and administrative | 184,769 | 6,937 | (663 | ) | 191,043 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities and equity | $ | 12,360,317 | $ | 5,519,480 | $ | 18,671,344 | $ | (13,260,932 | ) | $ | 23,290,209 | Investment in subsidiaries | 581,003 | — | (581,003 | ) | — | Interest expense, net | 36,003 | 41,485 | (26 | ) | 77,462 | |||||||||||||||||||||||||||||||||||||||||||||
Total liabilities and equity | $ | 12,672.60 | $ | 11,110.10 | $ | 19,754.70 | $ | (17,606.5 | ) | $ | 25,930.90 | Income taxes receivable | 18,702 | 84 | — | 18,786 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Software, net | 21,535 | — | — | 21,535 | Total costs and expenses | 1,308,147 | 350,956 | (368,173 | ) | 1,290,930 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | Total assets | $ | 1,219,390 | $ | 2,060,667 | $ | (664,391 | ) | $ | 2,615,666 | (Increase) decrease in fair value of derivatives | (5,634 | ) | 2,390 | — | (3,244 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | 31-Dec-11 | INCOME / (LOSS) BEFORE INCOME TAXES and EQUITY IN EARNINGS OF SUBS | 178,147 | 83,095 | — | 261,242 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
31-Dec-12 | (In Thousands of Dollars) | LIABILITIES AND EQUITY | INCOME TAX EXPENSE | 100,772 | 920 | — | 101,692 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In Millions of Dollars) | LIABILITIES: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts payable | $ | 45,827 | $ | 8,573 | $ | (23 | ) | $ | 54,377 | NET INCOME / (LOSS) BEFORE EQUITY IN EARNINGS OF SUBS | 77,375 | 82,175 | — | 159,550 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | Accrued liabilities | 148,820 | 4,167 | (28,802 | ) | 124,185 | EQUITY IN EARNINGS OF SUBSIDIARIES | 82,175 | — | (82,175 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | (The Hertz | Subsidiaries | Guarantor | Corporation & | Income tax payable / (receivable) | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | Corporation) | Subsidiaries | Subsidiaries | Deferred income taxes | 341,408 | 1,554 | — | 342,962 | NET INCOME / (LOSS) | $ | 159,550 | $ | 82,175 | $ | (82,175 | ) | $ | 159,550 | |||||||||||||||||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | ASSETS | Vehicle insurance reserves | 75,663 | 10,852 | — | 86,515 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ASSETS | Cash and cash equivalents | $ | 565,002 | $ | 7,385 | $ | 358,821 | $ | — | $ | 931,208 | Debt and other obligations | — | 1,454,518 | (54,563 | ) | 1,399,955 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 24.6 | $ | 6.5 | $ | 502.1 | $ | — | $ | 533.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted cash and cash equivalents | 44,663 | 28,130 | 235,246 | — | 308,039 | Total liabilities | 611,718 | 1,479,664 | (83,388 | ) | 2,007,994 | DOLLAR THRIFTY AUTOMOTIVE GROUP, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted cash and cash equivalents | 32.7 | 17.1 | 521.8 | — | 571.6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables, less allowance for doubtful accounts | 297,292 | 218,754 | 1,100,336 | — | 1,616,382 | COMMITMENTS AND CONTINGENCIES | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables, less allowance for doubtful accounts | 544.5 | 444 | 924.7 | (26.6 | ) | 1,886.60 | EQUITY: | 607,672 | 581,003 | (581,003 | ) | 607,672 | FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Due from Hertz affiliate | 655,411 | 65,972 | 1,194,041 | (1,915,424 | ) | — | (In Thousands of Dollars) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Due from Hertz affiliate | 1,048.00 | 2,023.50 | 3,491.70 | (6,550.4 | ) | 12.8 | Total liabilities and equity | $ | 1,219,390 | $ | 2,060,667 | $ | (664,391 | ) | $ | 2,615,666 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories, at lower cost or market | 22,440 | 26,541 | 34,997 | — | 83,978 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories, at lower cost or market | 24.4 | 41.2 | 40.1 | — | 105.7 | Guarantor | Non- | Eliminations | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Prepaid expenses and other assets | 2,088,579 | 32,974 | 137,189 | (1,842,608 | ) | 416,134 | DOLLAR THRIFTY AUTOMOTIVE GROUP, INC. AND SUBSIDIARIES | Subsidiaries | Guarantor | Consolidated | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Prepaid expenses and other assets | 2,570.50 | 277.8 | 173.3 | (2,560.1 | ) | 461.5 | CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME | Subsidiaries | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue earning equipment, net | 167,304 | 1,505,867 | 8,432,238 | — | 10,105,409 | FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2012 | Net cash provided by operating activities | $ | 306,521 | $ | 347,234 | $ | (86,461 | ) | $ | 567,294 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue earning equipment, net | 104.2 | 1,678.50 | 11,125.60 | — | 12,908.30 | (In Thousands of Dollars) | CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and equipment, net | 824,381 | 170,874 | 256,599 | — | 1,251,854 | Revenue-earning vehicles—Purchases | (58,522 | ) | (1,110,010 | ) | — | (1,168,532 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and equipment, net | 865.7 | 321.9 | 248.8 | — | 1,436.40 | Revenue-earning vehicles—Proceeds from sales | 42,746 | 715,020 | — | 757,766 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment in subsidiaries, net | 4,413,289 | 460,201 | — | (4,873,490 | ) | — | Guarantor | Non- | Eliminations | Total | Net change in cash & cash equivalents required minimum balance | 100,000 | — | — | 100,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment in subsidiaries, net | 6,964.90 | 1,260.90 | — | (8,225.8 | ) | — | Subsidiaries | Guarantor | Consolidated | Net change in restricted cash and investments | 16 | (75,477 | ) | — | (75,461 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other intangible assets, net | 94,682 | 2,363,617 | 103,935 | — | 2,562,234 | Subsidiaries | Property, equipment and software—Purchases | (16,543 | ) | (90 | ) | — | (16,633 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other intangible assets, net | 74.6 | 3,893.30 | 64.2 | — | 4,032.10 | Total revenues | $ | 1,151,812 | $ | 346,437 | $ | (285,999 | ) | $ | 1,212,250 | Property, equipment and software—Proceeds from sales | 330 | 29 | — | 359 | ||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill | 100,221 | 67,228 | 224,645 | — | 392,094 | Dividends received | 266,675 | — | (266,675 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill | 106.2 | 1,018.90 | 216.8 | — | 1,341.90 | COSTS AND EXPENSES: | Investment in subsidiary | (247,713 | ) | — | 247,713 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 9,273,264 | $ | 4,947,543 | $ | 12,078,047 | $ | (8,631,522 | ) | $ | 17,667,332 | Direct vehicle and operating | 558,350 | 40,861 | (2,748 | ) | 596,463 | Intercompany | (139,869 | ) | 8,993 | 130,876 | — | |||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 12,360.30 | $ | 10,983.60 | $ | 17,309.10 | $ | (17,362.9 | ) | $ | 23,290.10 | Vehicle depreciation and lease charges, net | 302,648 | 168,446 | (282,726 | ) | 188,368 | |||||||||||||||||||||||||||||||||||||||||||||||||||
LIABILITIES AND EQUITY | Selling, general and administrative | 143,258 | 4,719 | (498 | ) | 147,479 | Net cash provided by/(used in) investing activities | (52,880 | ) | (461,535 | ) | 111,914 | (402,501 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
LIABILITIES AND EQUITY | Interest expense, net | 11,156 | 33,472 | (27 | ) | 44,601 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Due to Hertz affiliate | $ | 1,251,347 | $ | 266,604 | $ | 397,885 | $ | (1,915,424 | ) | $ | 412 | CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Due to Hertz affiliate | $ | 2,254.20 | $ | 2,421.60 | $ | 1,874.60 | $ | (6,550.4 | ) | $ | — | Total costs and expenses | 1,015,412 | 247,498 | (285,999 | ) | 976,911 | Debt and other obligations: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts payable | 188,695 | 165,258 | 543,536 | — | 897,489 | Proceeds from vehicle debt and other obligations | — | 1,592,466 | (54,563 | ) | 1,537,903 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts payable | 239.2 | 193.9 | 566 | — | 999.1 | (Increase) decrease in fair value of derivatives | — | 525 | — | 525 | Payments of vehicle debt and other obligations | — | (1,396,350 | ) | 9,277 | (1,387,073 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued liabilities | 607,673 | 209,263 | 309,402 | — | 1,126,338 | INCOME / (LOSS) BEFORE INCOME TAXES and EQUITY IN EARNINGS OF SUBS | 136,400 | 98,414 | — | 234,814 | Payments—non-vehicle debt | (148,125 | ) | — | — | (148,125 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued liabilities | 605.7 | 45 | 554.3 | (26.6 | ) | 1,178.40 | INCOME TAX EXPENSE | 89,212 | 304 | — | 89,516 | Issuance of common shares | 4,774 | — | — | 4,774 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued taxes | 54,559 | 134,186 | (13,889 | ) | (11,872 | ) | 162,984 | Net settlement of employee withholding taxes on share-based awards | (3,205 | ) | — | — | (3,205 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued taxes | 54.4 | 29.1 | 1,049.30 | (965.5 | ) | 167.3 | NET INCOME / (LOSS) BEFORE EQUITY IN EARNINGS OF SUBS | 47,188 | 98,110 | — | 145,298 | Early termination of interest rate swap | (8,815 | ) | — | — | (8,815 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | 4,434,274 | 4,237 | 6,469,338 | — | 10,907,849 | EQUITY IN EARNINGS OF SUBSIDIARIES | 98,110 | — | (98,110 | ) | — | Forward stock repurchase agreement | (100,000 | ) | — | — | (100,000 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | 6,190.00 | 67.7 | 8,756.80 | — | 15,014.50 | Financing issue costs | (2,038 | ) | (12,719 | ) | — | (14,757 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Public liability and property damage | 107,881 | 14,025 | 159,628 | — | 281,534 | NET INCOME / (LOSS) | $ | 145,298 | $ | 98,110 | $ | (98,110 | ) | $ | 145,298 | Dividends paid | — | (266,675 | ) | 266,675 | — | |||||||||||||||||||||||||||||||||||||||||||||||
Public liability and property damage | 99.3 | 52.8 | 180.1 | — | 332.2 | Capital contribution from Parent | — | 246,842 | (246,842 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred taxes on income | — | 1,449,171 | 2,043,437 | (1,830,736 | ) | 1,661,872 | COMPREHENSIVE INCOME / (LOSS) | $ | 159,277 | $ | 103,277 | $ | (103,277 | ) | $ | 159,277 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred taxes on income | — | 2,205.60 | 2,070.10 | (1,594.6 | ) | 2,681.10 | Net cash provided by/(used in) financing activities | (257,409 | ) | 163,564 | (25,453 | ) | (119,298 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities | 6,644,429 | 2,242,744 | 9,909,337 | (3,758,032 | ) | 15,038,478 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities | 9,442.80 | 5,015.70 | 15,051.20 | (9,137.1 | ) | 20,372.60 | CHANGE IN CASH AND CASH EQUIVALENTS | (3,768 | ) | 49,263 | — | 45,495 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity: | DOLLAR THRIFTY AUTOMOTIVE GROUP, INC. AND SUBSIDIARIES | CASH AND CASH EQUIVALENTS: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity: | CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME | Beginning of Period | 450,007 | 13,146 | — | 463,153 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The Hertz Corporation and Subsidiaries stockholder's equity | 2,628,835 | 2,704,799 | 2,168,691 | (4,873,490 | ) | 2,628,835 | FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The Hertz Corporation and Subsidiaries stockholder's equity | 2,917.50 | 5,967.90 | 2,257.90 | (8,225.8 | ) | 2,917.50 | (In Thousands of Dollars) | End of Period | $ | 446,239 | $ | 62,409 | $ | — | $ | 508,648 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interest | — | — | 19 | — | 19 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interest | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total equity | 2,628,835 | 2,704,799 | 2,168,710 | (4,873,490 | ) | 2,628,854 | Guarantor | Non- | Eliminations | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total equity | 2,917.50 | 5,967.90 | 2,257.90 | (8,225.8 | ) | 2,917.50 | Subsidiaries | Guarantor | Consolidated | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities and equity | $ | 9,273,264 | $ | 4,947,543 | $ | 12,078,047 | $ | (8,631,522 | ) | $ | 17,667,332 | Subsidiaries | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities and equity | $ | 12,360.30 | $ | 10,983.60 | $ | 17,309.10 | $ | (17,362.9 | ) | $ | 23,290.10 | Total revenues | $ | 1,140,588 | $ | 332,591 | $ | (277,981 | ) | $ | 1,195,198 | |||||||||||||||||||||||||||||||||||||||||||||||
COSTS AND EXPENSES: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Direct vehicle and operating | 549,971 | 40,151 | (6,323 | ) | 583,799 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | Vehicle depreciation and lease charges, net | 288,433 | 186,677 | (271,127 | ) | 203,983 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Three Months Ended June 30, 2013 | For the Year Ended December 31, 2012 | Selling, general and administrative | 140,345 | 5,810 | (514 | ) | 145,641 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In Millions of Dollars) | (In Thousands of Dollars) | Interest expense, net | 29,552 | 29,364 | (17 | ) | 58,899 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total costs and expenses | 1,008,301 | 262,002 | (277,981 | ) | 992,322 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | Parent | Guarantor | Non- | Eliminations | The Hertz | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | (The Hertz | Subsidiaries | Guarantor | Corporation & | (Increase) decrease in fair value of derivatives | (5,634 | ) | 2,267 | — | (3,367 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | Corporation) | Subsidiaries | Subsidiaries | INCOME / (LOSS) BEFORE INCOME TAXES and EQUITY IN EARNINGS OF SUBS | 137,921 | 68,322 | — | 206,243 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total revenues | $ | 1,147.00 | $ | 662.8 | $ | 1,617.50 | $ | (712.7 | ) | $ | 2,714.60 | Total revenues | $ | 4,259,049 | $ | 975,500 | $ | 6,255,039 | $ | (2,468,781 | ) | $ | 9,020,807 | INCOME TAX EXPENSE | 80,270 | 324 | — | 80,594 | ||||||||||||||||||||||||||||||||||||||||
Expenses: | Expenses: | NET INCOME / (LOSS) BEFORE EQUITY IN EARNINGS OF SUBS | 57,651 | 67,998 | — | 125,649 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Direct operating | 2,384,829 | 553,099 | 1,857,860 | — | 4,795,788 | EQUITY IN EARNINGS OF SUBSIDIARIES | 67,998 | — | (67,998 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Direct operating | 618.8 | 357.1 | 430.3 | (0.3 | ) | 1,405.90 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation of revenue earning equipment and lease charges | 2,402,032 | 198,322 | 2,016,585 | (2,468,781 | ) | 2,148,158 | NET INCOME / (LOSS) | $ | 125,649 | $ | 67,998 | $ | (67,998 | ) | $ | 125,649 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation of revenue earning equipment and lease charges | 608 | 168.9 | 576.4 | (712.2 | ) | 641.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative | 448,100 | 123,300 | 374,181 | — | 945,581 | COMPREHENSIVE INCOME / (LOSS) | $ | 127,358 | $ | 60,093 | $ | (60,093 | ) | $ | 127,358 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative | 122.3 | 64.7 | 88 | (0.2 | ) | 274.8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense, net of interest income | 253,437 | 39,679 | 299,770 | — | 592,886 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | 88 | 8.5 | 73.7 | — | 170.2 | DOLLAR THRIFTY AUTOMOTIVE GROUP, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other (income) expense, net | (10,656 | ) | (19 | ) | 46,217 | — | 35,542 | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest income | — | (1.6 | ) | (0.4 | ) | — | (2.0 | ) | FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2012 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total expenses | 5,477,742 | 914,381 | 4,594,613 | (2,468,781 | ) | 8,517,955 | (In Thousands of Dollars) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other (income) expense, net | 14.5 | (2.2 | ) | (13.4 | ) | — | (1.1 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes and equity in earnings (losses) of subsidiaries | (1,218,693 | ) | 61,119 | 1,660,426 | — | 502,852 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total expenses | 1,451.60 | 595.4 | 1,154.60 | (712.7 | ) | 2,488.90 | Guarantor | Non- | Eliminations | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Provision) benefit for taxes on income | 476,444 | (44,846 | ) | (658,671 | ) | — | (227,073 | ) | Subsidiaries | Guarantor | Consolidated | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes and equity in earnings (losses) of subsidiaries | (304.6 | ) | 67.4 | 462.9 | — | 225.7 | Subsidiaries | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity in earnings (losses) of subsidiaries (net of tax) | 1,018,028 | 45,922 | — | (1,063,950 | ) | — | Net cash provided by operating activities | $ | 206,985 | $ | 319,585 | $ | (91,800 | ) | $ | 434,770 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(Provision) benefit for taxes on income | 109.3 | (25.2 | ) | (179.9 | ) | — | (95.8 | ) | CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder | $ | 275,779 | $ | 62,195 | $ | 1,001,755 | $ | (1,063,950 | ) | $ | 275,779 | Revenue-earning vehicles—Purchases | (38,350 | ) | (1,342,267 | ) | — | (1,380,617 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||
Equity in earnings (losses) of subsidiaries (net of tax) | 325.2 | 56.8 | — | (382.0 | ) | — | Revenue-earning vehicles—Proceeds from sales | 26,623 | 730,468 | — | 757,091 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net change in restricted cash and investments | (4,817 | ) | 108,462 | — | 103,645 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder | $ | 129.9 | $ | 99 | $ | 283 | $ | (382.0 | ) | $ | 129.9 | CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | Property, equipment and software—Purchases | (13,817 | ) | (84 | ) | — | (13,901 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
For the Year Ended December 31, 2011 | Property, equipment and software—Proceeds from sales | 3,491 | — | — | 3,491 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In Thousands of Dollars) | Dividends received | 79,000 | — | (79,000 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | Investment in subsidiary | (231,600 | ) | — | 231,600 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2013 | Intercompany | (35,029 | ) | (56,793 | ) | 91,822 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In Millions of Dollars) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | Net cash provided by/(used in) investing activities | (214,499 | ) | (560,214 | ) | 244,422 | (530,291 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | Corporation) | Subsidiaries | Subsidiaries | CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | Total revenues | $ | 4,068,310 | $ | 809,093 | $ | 5,733,827 | $ | (2,312,850 | ) | $ | 8,298,380 | Debt and other obligations: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | Proceeds from vehicle debt and other obligations | — | 581,169 | — | 581,169 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total revenues | $ | 2,201.60 | $ | 1,284.90 | $ | 3,120.60 | $ | (1,455.9 | ) | $ | 5,151.20 | Expenses: | Payments of vehicle debt and other obligations | — | (500,000 | ) | — | (500,000 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common shares | 1,694 | — | — | 1,694 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses: | Direct operating | 2,262,371 | 497,053 | 1,806,954 | — | 4,566,378 | Net settlement of employee withholding taxes on share-based awards | (1,215 | ) | — | — | (1,215 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases of common stock for the treasury | (29,136 | ) | — | — | (29,136 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Direct operating | 1,231.70 | 710 | 815.9 | (0.5 | ) | 2,757.10 | Depreciation of revenue earning equipment and lease charges | 1,996,733 | 180,807 | 2,041,049 | (2,312,850 | ) | 1,905,739 | Financing issue costs | (7,825 | ) | (945 | ) | — | (8,770 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Dividends paid | — | (79,000 | ) | 79,000 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation of revenue earning equipment and lease charges | 1,269.40 | 321.3 | 1,092.60 | (1,455.2 | ) | 1,228.10 | Selling, general and administrative | 326,794 | 85,414 | 332,909 | — | 745,117 | Capital contribution from Parent | — | 231,622 | (231,622 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative | 229.5 | 124.4 | 172.6 | (0.2 | ) | 526.3 | Interest expense, net of interest income | 299,099 | 27,226 | 318,378 | — | 644,703 | Net cash provided by/(used in) financing activities | (36,482 | ) | 232,846 | (152,622 | ) | 43,742 | |||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | 169.1 | 18.8 | 145.6 | — | 333.5 | Other (income) expense, net | 62,396 | (18 | ) | 170 | — | 62,548 | CHANGE IN CASH AND CASH EQUIVALENTS | (43,996 | ) | (7,783 | ) | — | (51,779 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
CASH AND CASH EQUIVALENTS: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest income | — | (3.1 | ) | (0.7 | ) | — | (3.8 | ) | Total expenses | 4,947,393 | 790,482 | 4,499,460 | (2,312,850 | ) | 7,924,485 | Beginning of Period | 446,239 | 62,409 | — | 508,648 | ||||||||||||||||||||||||||||||||||||||||||||||||
Other (income) expense, net | 14.3 | (2.2 | ) | (13.8 | ) | — | (1.7 | ) | Income (loss) before income taxes, noncontrolling interest and equity in earnings (losses) of subsidiaries | (879,083 | ) | 18,611 | 1,234,367 | — | 373,895 | End of Period | $ | 402,243 | $ | 54,626 | $ | — | $ | 456,869 | ||||||||||||||||||||||||||||||||||||||||||||
Total expenses | 2,914.00 | 1,169.20 | 2,212.20 | (1,455.9 | ) | 4,839.50 | (Provision) benefit for taxes on income (loss) | 342,469 | (10,016 | ) | (476,299 | ) | — | (143,846 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
DOLLAR THRIFTY AUTOMOTIVE GROUP, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes and equity in earnings (losses) of subsidiaries | (712.4 | ) | 115.7 | 908.4 | — | 311.7 | Equity in earnings (losses) of subsidiaries (net of tax) | 747,103 | 26,215 | — | (773,318 | ) | — | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2011 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Provision) benefit for taxes on income | 257.5 | (43.1 | ) | (369.7 | ) | — | (155.3 | ) | Net income (loss) | 210,489 | 34,810 | 758,068 | (773,318 | ) | 230,049 | (In Thousands of Dollars) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity in earnings (losses) of subsidiaries (net of tax) | 611.3 | 111.6 | — | (722.9 | ) | — | Less: Net income attributable to noncontrolling interest | — | — | (19,560 | ) | — | (19,560 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Guarantor | Non- | Eliminations | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder | $ | 156.4 | $ | 184.2 | $ | 538.7 | $ | (722.9 | ) | $ | 156.4 | Net income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder | $ | 210,489 | $ | 34,810 | $ | 738,508 | $ | (773,318 | ) | $ | 210,489 | Subsidiaries | Guarantor | Consolidated | ||||||||||||||||||||||||||||||||||||||||||
Subsidiaries | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash provided by operating activities | $ | 268,555 | $ | 262,206 | $ | (72,151 | ) | $ | 458,610 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Year Ended December 31, 2010 | Revenue-earning vehicles—Purchases | (46,155 | ) | (937,724 | ) | — | (983,879 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | (In Thousands of Dollars) | Revenue-earning vehicles—Proceeds from sales | 31,135 | 460,873 | — | 492,008 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Three Months Ended June 30, 2012 | Net change in cash & cash equivalents required minimum balance | 100,000 | — | — | 100,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In Millions of Dollars) | Net change in restricted cash and investments | 270 | 76,036 | — | 76,306 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, equipment and software—Purchases | (11,108 | ) | (88 | ) | — | (11,196 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | Property, equipment and software—Proceeds from sales | 324 | 29 | — | 353 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | (The Hertz | Subsidiaries | Guarantor | Corporation & | Dividends received | 191,675 | — | (191,675 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | Corporation) | Subsidiaries | Subsidiaries | Investment in subsidiary | (249,389 | ) | — | 249,389 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | Total revenues | $ | 3,961,435 | $ | 701,264 | $ | 5,350,348 | $ | (2,450,513 | ) | $ | 7,562,534 | Intercompany | (119,298 | ) | 5,583 | 113,715 | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Total revenues | $ | 1,074.90 | $ | 233.1 | $ | 1,493.10 | $ | (576.0 | ) | $ | 2,225.10 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses: | Net cash provided by/(used in) investing activities | (102,546 | ) | (395,291 | ) | 171,429 | (326,408 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Direct operating | 609.4 | 141.1 | 438.4 | — | 1,188.90 | Direct operating | 2,217,864 | 452,674 | 1,612,856 | — | 4,283,394 | CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt and other obligations: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation of revenue earning equipment and lease charges | 560.6 | 48 | 487.2 | (576.0 | ) | 519.8 | Depreciation of revenue earning equipment and lease charges | 1,938,416 | 200,252 | 2,179,992 | (2,450,513 | ) | 1,868,147 | Proceeds from vehicle debt and other obligations | — | 1,192,226 | (54,323 | ) | 1,137,903 | |||||||||||||||||||||||||||||||||||||||||||||||||
Payments of vehicle debt and other obligations | — | (1,081,350 | ) | 9,277 | (1,072,073 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative | 94.4 | 31.4 | 80.8 | — | 206.6 | Selling, general and administrative | 320,192 | 67,739 | 276,511 | — | 664,442 | Payments—non-vehicle debt | (148,125 | ) | — | — | (148,125 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common shares | 2,921 | — | — | 2,921 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | 56 | 9.1 | 74.2 | — | 139.3 | Interest expense, net of interest income | 297,276 | 20,068 | 396,880 | — | 714,224 | Net settlement of employee withholding taxes on share-based awards | (3,205 | ) | — | — | (3,205 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Financing issue costs | (1,997 | ) | (11,306 | ) | — | (13,303 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest income | — | (0.2 | ) | (0.3 | ) | — | (0.5 | ) | Other (income) expense, net | 9,915 | (3 | ) | (9,907 | ) | — | 5 | Dividends paid | — | (191,675 | ) | 191,675 | — | ||||||||||||||||||||||||||||||||||||||||||||||
Capital contribution from Parent | — | 245,907 | (245,907 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other (income) expense, net | — | — | (0.6 | ) | — | (0.6 | ) | Total expenses | 4,783,663 | 740,730 | 4,456,332 | (2,450,513 | ) | 7,530,212 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash provided by/(used in) financing activities | (150,406 | ) | 153,802 | (99,278 | ) | (95,882 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total expenses | 1,320.40 | 229.4 | 1,079.70 | (576.0 | ) | 2,053.50 | Income (loss) before income taxes, noncontrolling interest and equity in earnings (losses) of subsidiaries | (822,228 | ) | (39,466 | ) | 894,016 | — | 32,322 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
CHANGE IN CASH AND CASH EQUIVALENTS | 15,603 | 20,717 | — | 36,320 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes noncontrolling interest and equity in earnings (losses) of subsidiaries | (245.5 | ) | 3.7 | 413.4 | — | 171.6 | (Provision) benefit for taxes on income (loss) | 314,692 | 10,718 | (358,732 | ) | — | (33,322 | ) | CASH AND CASH EQUIVALENTS: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning of Period | 450,007 | 13,146 | — | 463,153 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Provision) benefit for taxes on income | 90.7 | (1.3 | ) | (160.1 | ) | — | (70.7 | ) | Equity in earnings (losses) of subsidiaries (net of tax) | 489,153 | (5,268 | ) | — | (483,885 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
End of Period | $ | 465,610 | $ | 33,863 | $ | — | $ | 499,473 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity in earnings (losses) of subsidiaries (net of tax) | 255.7 | (33.8 | ) | — | (221.9 | ) | — | Net income (loss) | (18,383 | ) | (34,016 | ) | 535,284 | (483,885 | ) | (1,000 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder | $ | 100.9 | $ | (31.4 | ) | $ | 253.3 | $ | (221.9 | ) | $ | 100.9 | Less: Net income attributable to noncontrolling interest | — | — | (17,383 | ) | — | (17,383 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder | $ | (18,383 | ) | $ | (34,016 | ) | $ | 517,901 | $ | (483,885 | ) | $ | (18,383 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In Millions of Dollars) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | For the Year Ended December 31, 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | (In Thousands of Dollars) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total revenues | $ | 2,042.90 | $ | 442.9 | $ | 2,834.30 | $ | (1,134.0 | ) | $ | 4,186.10 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses: | Parent | Guarantor | Non- | Eliminations | The Hertz | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Direct operating | 1,181.20 | 274.4 | 847.5 | — | 2,303.10 | (The Hertz | Subsidiaries | Guarantor | Corporation & | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation of revenue earning equipment and lease charges | 1,099.30 | 92.4 | 977.2 | (1,134.0 | ) | 1,034.90 | Net income (loss) | $ | 275,779 | $ | 62,195 | $ | 1,001,755 | $ | (1,063,950 | ) | $ | 275,779 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative | 198.6 | 56.9 | 158.8 | — | 414.3 | Other comprehensive income, net of tax | 1,522 | 121 | 6,816 | (6,937 | ) | 1,522 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | 119.6 | 19 | 150.2 | — | 288.8 | Comprehensive income (loss) | $ | 277,301 | $ | 62,316 | $ | 1,008,571 | $ | (1,070,887 | ) | $ | 277,301 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Interest income | (0.1 | ) | (0.4 | ) | (1.1 | ) | — | (1.6 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other (income) expense, net | — | — | (1.0 | ) | — | (1.0 | ) | CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Year Ended December 31, 2011 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total expenses | 2,598.60 | 442.3 | 2,131.60 | (1,134.0 | ) | 4,038.50 | (In Thousands of Dollars) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes noncontrolling interest and equity in earnings (losses) of subsidiaries | (555.7 | ) | 0.6 | 702.7 | — | 147.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Provision) benefit for taxes on income | 201.9 | (0.6 | ) | (296.2 | ) | — | (94.9 | ) | (The Hertz | Subsidiaries | Guarantor | Corporation & | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity in earnings (losses) of subsidiaries (net of tax) | 406.5 | (22.6 | ) | — | (383.9 | ) | — | Net income (loss) | $ | 210,489 | $ | 34,810 | $ | 758,068 | $ | (773,318 | ) | $ | 230,049 | |||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder | $ | 52.7 | $ | (22.6 | ) | $ | 406.5 | $ | (383.9 | ) | $ | 52.7 | Other comprehensive income, net of tax | (66,237 | ) | — | (34,619 | ) | 34,619 | (66,237 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss) | 144,252 | 34,810 | 723,449 | (738,699 | ) | 163,812 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Three Months Ended June 30, 2013 | Less: Comprehensive income attributable to noncontrolling interest | — | — | (19,560 | ) | — | (19,560 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In Millions of Dollars) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder | $ | 144,252 | $ | 34,810 | $ | 703,889 | $ | (738,699 | ) | $ | 144,252 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | For the Year Ended December 31, 2010 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 129.9 | $ | 99 | $ | 283 | $ | (382.0 | ) | $ | 129.9 | (In Thousands of Dollars) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | (22.2 | ) | (3.2 | ) | (24.4 | ) | 27.6 | (22.2 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss) | $ | 107.7 | $ | 95.8 | $ | 258.6 | $ | (354.4 | ) | $ | 107.7 | (The Hertz | Subsidiaries | Guarantor | Corporation & | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | (18,383 | ) | $ | (34,016 | ) | $ | 535,284 | $ | (483,885 | ) | $ | (1,000 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2013 | Other comprehensive income, net of tax | 41,154 | — | 28,427 | (28,427 | ) | 41,154 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In Millions of Dollars) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss) | 22,771 | (34,016 | ) | 563,711 | (512,312 | ) | 40,154 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | Less: Comprehensive income attributable to noncontrolling interest | — | — | (17,383 | ) | — | (17,383 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | Comprehensive income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder | $ | 22,771 | $ | (34,016 | ) | $ | 546,328 | $ | (512,312 | ) | $ | 22,771 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 156.4 | $ | 184.2 | $ | 538.7 | $ | (722.9 | ) | $ | 156.4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income, net of tax | (46.5 | ) | (0.4 | ) | (51.3 | ) | 51.8 | (46.4 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss) | 109.9 | 183.8 | 487.4 | (671.1 | ) | 110 | For the Year Ended December 31, 2012 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In Thousands of Dollars) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Three Months Ended June 30, 2012 | Parent | Guarantor | Non- | Eliminations | The Hertz | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In Millions of Dollars) | (The Hertz | Subsidiaries | Guarantor | Corporation & | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 1,677,648 | $ | 690,292 | $ | 1,155,789 | $ | (775,317 | ) | $ | 2,748,412 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | Cash flows from investing activities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | Net change in restricted cash and cash equivalents | 11,981 | 13,596 | (287,182 | ) | — | (261,605 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 100.9 | $ | (31.4 | ) | $ | 253.3 | $ | (221.9 | ) | $ | 100.9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue earning equipment expenditures | (88,120 | ) | (763,610 | ) | (8,761,509 | ) | — | (9,613,239 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income, net of tax | (42.0 | ) | — | (45.6 | ) | 45.6 | (42.0 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from disposal of revenue earning equipment | 79,390 | 276,342 | 6,769,364 | — | 7,125,096 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss) | 58.9 | (31.4 | ) | 207.7 | (176.3 | ) | 58.9 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and equipment expenditures | (173,053 | ) | (32,022 | ) | (107,711 | ) | — | (312,786 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) | Proceeds from disposal of property and equipment | 67,370 | 11,839 | 58,485 | — | 137,694 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In Millions of Dollars) | Capital contributions to subsidiaries | (4,267,118 | ) | — | — | 4,267,118 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Return of capital from subsidiaries | 1,829,256 | — | — | (1,829,256 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | Loan to Parent From Non-Guarantor | — | — | (385,108 | ) | 385,108 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 52.7 | $ | (22.6 | ) | $ | 406.5 | $ | (383.9 | ) | $ | 52.7 | Acquisitions, net of cash acquired | (1,708,520 | ) | (196,648 | ) | — | — | (1,905,168 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income, net of tax | (9.6 | ) | — | (16.4 | ) | 16.4 | (9.6 | ) | Proceeds from disposal of business | — | — | 84,497 | — | 84,497 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss) | 43.1 | (22.6 | ) | 390.1 | (367.5 | ) | 43.1 | Other investing activities | — | — | (1,779 | ) | — | (1,779 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash provided by (used in) investing activities | (4,248,814 | ) | (690,503 | ) | (2,630,943 | ) | 2,822,970 | (4,747,290 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | Cash flows from financing activities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2013 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In Millions of Dollars) | Proceeds from issuance of long-term debt | 2,210,000 | — | 27,280 | — | 2,237,280 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payment of long-term debt | (650,407 | ) | (18 | ) | (301,719 | ) | — | (952,144 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | Short-term borrowings: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | Proceeds | — | — | 438,387 | — | 438,387 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | (365.7 | ) | $ | 425.1 | $ | 1,811.90 | $ | (405.3 | ) | $ | 1,466.00 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payments | (26,775 | ) | — | (1,253,368 | ) | — | (1,280,143 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net change in restricted cash and cash equivalents | (1.0 | ) | 0.2 | 176.2 | — | 175.4 | Proceeds (payments) under the revolving lines of credit, net | 220,000 | (1,262 | ) | 1,054,426 | — | 1,273,164 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue earning equipment expenditures | (87.9 | ) | (347.7 | ) | (6,389.9 | ) | — | (6,825.5 | ) | Capital contributions received from parent | — | — | 4,267,118 | (4,267,118 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from disposal of revenue earning equipment | 47.7 | 16.9 | 3,678.20 | — | 3,742.80 | Loan to Parent From Non-Guarantor | 385,108 | — | — | (385,108 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and equipment expenditures | (99.1 | ) | (18.0 | ) | (51.0 | ) | — | (168.1 | ) | Payment of dividends and return of capital | — | — | (2,604,573 | ) | 2,604,573 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from disposal of property and equipment | 24.6 | 5.5 | 12.4 | — | 42.5 | Dividends paid | (25,000 | ) | — | — | — | (25,000 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital contributions to subsidiaries | (485.7 | ) | — | — | 485.7 | — | Proceeds from employee stock purchase plan | 4,275 | — | — | — | 4,275 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Return of capital from subsidiaries | 651 | — | — | (651.0 | ) | — | Loan with Hertz Global Holdings, Inc. | (13,220 | ) | — | — | — | (13,220 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan to Parent/Guarantor from Non-Guarantor | — | — | 57 | (57.0 | ) | — | Purchase of noncontrolling interest | (38,000 | ) | — | — | — | (38,000 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions, net of cash acquired | — | (2.8 | ) | (226.4 | ) | — | (229.2 | ) | Payment of financing costs | (35,215 | ) | (3,316 | ) | (10,902 | ) | — | (49,433 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from disposal of business | — | — | — | — | — | Net cash provided by (used in) financing activities | 2,030,766 | (4,596 | ) | 1,616,649 | (2,047,653 | ) | 1,595,166 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other investing activities | — | — | (2.0 | ) | — | (2.0 | ) | Effect of foreign exchange rate changes on cash and cash equivalents | — | — | 5,739 | — | 5,739 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash provided by (used in) investing activities | 49.6 | (345.9 | ) | (2,745.5 | ) | (222.3 | ) | (3,264.1 | ) | Net change in cash and cash equivalents during the period | (540,400 | ) | (4,807 | ) | 147,234 | — | (397,973 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Cash flows from financing activities: | Cash and cash equivalents at beginning of period | 565,002 | 7,385 | 358,821 | — | 931,208 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from issuance of long-term debt | 250 | — | 954.4 | — | 1,204.40 | Cash and cash equivalents at end of period | $ | 24,602 | $ | 2,578 | $ | 506,055 | $ | — | $ | 533,235 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Payment of long-term debt | (22.8 | ) | — | (297.9 | ) | — | (320.7 | ) | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Year Ended December 31, 2011 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term borrowings: | (In Thousands of Dollars) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds | — | — | 332 | — | 332 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payments | — | — | (435.9 | ) | — | (435.9 | ) | Parent | Guarantor | Non- | Eliminations | The Hertz | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds under the revolving lines of credit | 1,360.00 | 1.6 | 2,318.50 | — | 3,680.10 | Corporation) | Subsidiaries | Subsidiaries | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 1,000,597 | $ | 773,170 | $ | 1,038,124 | $ | (553,370 | ) | $ | 2,258,521 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payments under the revolving lines of credit | (735.0 | ) | (5.0 | ) | (1,477.9 | ) | — | (2,217.9 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital contributions received from parent | — | — | 485.7 | (485.7 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net change in restricted cash and cash equivalents | (28,570 | ) | (2,662 | ) | (70,534 | ) | — | (101,766 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan to Parent/Guarantor from Non-Guarantor | — | (57.0 | ) | — | 57 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue earning equipment expenditures | (142,134 | ) | (670,056 | ) | (8,642,121 | ) | — | (9,454,311 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payment of dividends and return of capital | — | — | (1,056.3 | ) | 1,056.30 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from disposal of revenue earning equipment | 163,330 | 170,522 | 7,516,590 | — | 7,850,442 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends paid to Parent | (479.7 | ) | — | — | — | (479.7 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and equipment expenditures | (189,562 | ) | (29,696 | ) | (62,437 | ) | — | (281,695 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from employee stock purchase plan | 2.4 | — | — | — | 2.4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from disposal of property and equipment | 23,952 | 9,263 | 20,599 | — | 53,814 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan with Hertz Global Holdings, Inc. | 12 | — | — | — | 12 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital contributions to subsidiaries | (3,549,088 | ) | — | — | 3,549,088 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payment of financing costs | (7.9 | ) | (0.8 | ) | (11.9 | ) | — | (20.6 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Return of capital from subsidiaries | 2,590,025 | — | — | (2,590,025 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash provided by (used in) financing activities | 379 | (61.2 | ) | 810.7 | 627.6 | 1,756.10 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan to Parent from Non-Guarantor | — | — | (490,273 | ) | 490,273 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effect of foreign exchange rate changes on cash and cash equivalents | — | — | (8.2 | ) | — | (8.2 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions, net of cash acquired | (214,384 | ) | (2,100 | ) | (10,597 | ) | — | (227,081 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net change in cash and cash equivalents during the period | 62.9 | 18 | (131.1 | ) | — | (50.2 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase of short-term investments, net | (32,891 | ) | — | — | — | (32,891 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents at beginning of period | 24.6 | 6.5 | 502.1 | — | 533.2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other investing activities | — | (13,602 | ) | 14,188 | — | 586 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents at end of period | $ | 87.5 | $ | 24.5 | $ | 371 | $ | — | $ | 483 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash provided by (used in) investing activities | (1,379,322 | ) | (538,331 | ) | (1,724,585 | ) | 1,449,336 | (2,192,902 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | Proceeds from issuance of long-term debt | 2,455,309 | — | 607,170 | — | 3,062,479 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In Millions of Dollars) | Payment of long-term debt | (3,596,295 | ) | (17 | ) | (52,988 | ) | — | (3,649,300 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term borrowings: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | Proceeds | — | — | 460,890 | — | 460,890 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | Payments | (29,224 | ) | — | (1,164,832 | ) | — | (1,194,056 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | (219.0 | ) | $ | 334.2 | $ | 1,409.30 | $ | (341.5 | ) | $ | 1,183.00 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds (payments) under the revolving lines of credit, net | (29,128 | ) | (229,778 | ) | 201,577 | — | (57,329 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interest | — | — | (23,100 | ) | — | (23,100 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net change in restricted cash and cash equivalents | 12.6 | 18.2 | 99.3 | — | 130.1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital contributions received from parent | — | — | 3,549,088 | (3,549,088 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue earning equipment expenditures | (73.8 | ) | (334.1 | ) | (5,303.1 | ) | — | (5,711.0 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payment of dividends and return of capital | (22,950 | ) | — | (3,143,395 | ) | 3,143,395 | (22,950 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from disposal of revenue earning equipment | 54.4 | 162.6 | 3,391.30 | — | 3,608.30 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from employee stock purchase plan | 3,577 | — | — | — | 3,577 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and equipment expenditures | (80.2 | ) | (24.2 | ) | (32.8 | ) | — | (137.2 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan to Parent from Non-Guarantor | 490,273 | — | — | (490,273 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from disposal of property and equipment | 44.3 | 4.2 | 7.9 | — | 56.4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan from Hertz Global Holdings, Inc. | (984 | ) | — | — | — | (984 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital contributions to subsidiaries | (2,215.9 | ) | — | — | 2,215.90 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payment of financing costs | (81,229 | ) | (2,817 | ) | (7,436 | ) | — | (91,482 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Return of capital from subsidiaries | 2,220.60 | — | — | (2,220.6 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash provided by (used in) financing activities | (810,651 | ) | (232,612 | ) | 426,974 | (895,966 | ) | (1,512,255 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions, net of cash acquired | — | (161.8 | ) | — | — | (161.8 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effect of foreign exchange rate changes on cash and cash equivalents | — | — | 3,838 | — | 3,838 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan to Parent from Non-Guarantor | — | — | (18.3 | ) | 18.3 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net decrease in cash and cash equivalents during the period | (1,189,376 | ) | 2,227 | (255,649 | ) | — | (1,442,798 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other investing activities | — | — | (0.6 | ) | — | (0.6 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents at beginning of period | 1,754,378 | 5,158 | 614,470 | — | 2,374,006 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash provided by (used in) investing activities | (38.0 | ) | (335.1 | ) | (1,856.3 | ) | 13.6 | (2,215.8 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents at end of period | $ | 565,002 | $ | 7,385 | $ | 358,821 | $ | — | $ | 931,208 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from issuance of long-term debt | 260 | — | 10.5 | — | 270.5 | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Year Ended December 31, 2010 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payment of long-term debt | (637.3 | ) | — | (5.8 | ) | — | (643.1 | ) | (In Thousands of Dollars) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term borrowings: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds | — | — | 246.7 | — | 246.7 | Parent | Guarantor | Non- | Eliminations | The Hertz | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payments | (26.8 | ) | — | (629.4 | ) | — | (656.2 | ) | Corporation) | Subsidiaries | Subsidiaries | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 337,055 | $ | 88,941 | $ | 2,193,486 | $ | (381,555 | ) | $ | 2,237,927 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds under the revolving lines of credit | 1,360.00 | 1.9 | 2,173.60 | — | 3,535.50 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payments under the revolving lines of credit | (950.0 | ) | (2.9 | ) | (1,038.8 | ) | — | (1,991.7 | ) | Net change in restricted cash and cash equivalents | 19,932 | (17,514 | ) | 158,098 | — | 160,516 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase of noncontrolling interest | (38.0 | ) | — | — | — | (38.0 | ) | Revenue earning equipment expenditures | (188,057 | ) | (96,452 | ) | (8,156,363 | ) | — | (8,440,872 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Capital contributions received from parent | — | — | 2,215.90 | (2,215.9 | ) | — | Proceeds from disposal of revenue earning equipment | 169,451 | 75,139 | 7,273,856 | — | 7,518,446 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payment of dividends and return of capital | (12.5 | ) | — | (2,562.1 | ) | 2,562.10 | (12.5 | ) | Property and equipment expenditures | (92,415 | ) | (14,137 | ) | (72,657 | ) | — | (179,209 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Repayment of Loan to Parent from Non-Guarantor | 18.3 | — | — | (18.3 | ) | — | Proceeds from disposal of property and equipment | 4,311 | 10,416 | 24,178 | — | 38,905 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from employee stock purchase plan | 2 | — | — | — | 2 | Capital contributions to subsidiaries | (1,544,332 | ) | — | — | 1,544,332 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan from Hertz Global Holdings, Inc. | (13.9 | ) | — | — | — | (13.9 | ) | Return of capital from subsidiaries | 1,877,095 | — | — | (1,877,095 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payment of financing costs | (4.2 | ) | (1.5 | ) | (1.2 | ) | — | (6.9 | ) | Acquisitions, net of cash acquired | (35 | ) | (43,789 | ) | (3,747 | ) | — | (47,571 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||
Net cash provided by (used in) financing activities | (42.4 | ) | (2.5 | ) | 409.4 | 327.9 | 692.4 | Purchase of short-term investments, net | 3,183 | 94 | 214 | — | 3,491 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effect of foreign exchange rate changes on cash and cash equivalents | — | — | (4.8 | ) | — | (4.8 | ) | Other investing activities | — | — | 2,726 | — | 2,726 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net decrease in cash and cash equivalents during the period | (299.4 | ) | (3.4 | ) | (42.4 | ) | — | (345.2 | ) | Net cash provided by (used in) investing activities | 249,133 | (86,243 | ) | (773,695 | ) | (332,763 | ) | (943,568 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents at beginning of period | 565 | 7.4 | 358.8 | — | 931.2 | Cash flows from financing activities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from issuance of long-term debt | 1,209,866 | — | 1,425,847 | — | 2,635,713 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents at end of period | $ | 265.6 | $ | 4 | $ | 316.4 | $ | — | $ | 586 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payment of long-term debt | (73,342 | ) | (68 | ) | (2,880,823 | ) | — | (2,954,233 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term borrowings: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds | — | — | 490,490 | — | 490,490 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payments | (2,615 | ) | — | (968,334 | ) | — | (970,949 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds (payments) under the revolving lines of credit, net | (18,907 | ) | (3,515 | ) | 1,048,492 | — | 1,026,070 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interest | — | — | (18,200 | ) | — | (18,200 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital contributions received from parent | — | — | 1,544,332 | (1,544,332 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payment of dividends and return of capital | (23,000 | ) | — | (2,258,650 | ) | 2,258,650 | (23,000 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from employee stock purchase plan | 3,208 | — | — | — | 3,208 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan from Hertz Global Holdings, Inc. | (6,173 | ) | — | — | — | (6,173 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Excess tax benefits from exercise of stock | (258 | ) | — | — | — | (258 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payment of financing costs | (29,111 | ) | — | (49,040 | ) | — | (78,151 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash provided by (used in) financing activities | 1,059,668 | (3,583 | ) | (1,665,886 | ) | 714,318 | 104,517 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effect of foreign exchange rate changes on cash and cash equivalents | — | — | (10,337 | ) | — | (10,337 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net decrease in cash and cash equivalents during the period | 1,645,856 | (885 | ) | (256,432 | ) | — | 1,388,539 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents at beginning of period | 108,522 | 6,043 | 870,902 | — | 985,467 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents at end of period | $ | 1,754,378 | $ | 5,158 | $ | 614,470 | $ | — | $ | 2,374,006 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SHAREBASED_PAYMENT_PLANS_DOLLA1
SHARE-BASED PAYMENT PLANS - DOLLAR THRIFTY (Tables) | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2012 | Dec. 31, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Performance Shares | Performance Shares | Restricted Stock Units | Restricted Stock Units | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SHARE-BASED PAYMENT PLANS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of non-qualified option rights activity | A summary of option activity under the Stock Incentive Plan and the Omnibus Plan as of December 31, 2012 is presented below. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Options | Shares | Weighted‑ | Weighted‑ | Aggregate Intrinsic | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Average | Average | Value (In thousands | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exercise | Remaining | of dollars) | Number of | Weighted- | Weighted- | Aggregate | Number of | Weighted | Weighted | Aggregate | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Price | Contractual | Shares | Average | Average | Intrinsic | Shares | Average | Average | Intrinsic Value | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Term (years) | Exercise | Remaining | Value | Exercise | Remaining | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding at January 1, 2012 | 15,142,061 | $ | 10.6 | 6.3 | $ | 41,110 | Price | Contractual | Price | Contractual | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Term | Term | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Granted | 35,492 | 0.17 | (In Thousands) | (In Thousands) | (In Thousands) | (In Thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding at January 1, 2012 | 1,575 | $ | 5.11 | 6.89 | $ | 102,579 | Outstanding at January 1, 2011 | 2,277 | $ | 5.73 | 7.61 | $ | 94,545 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exercised | (1,740,447 | ) | 5.75 | Granted | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exercised | (297 | ) | 5.7 | Granted | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Forfeited or Expired | (248,431 | ) | 14.66 | Canceled (Forfeited/Expired) | — | — | Exercised | (672 | ) | 7.1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Canceled (Forfeited/Expired) | (30 | ) | 7.62 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding at December 31, 2012 | 13,188,675 | 11.13 | 5.4 | $ | 74,681 | Outstanding at September 30, 2012 | 1,278 | $ | 4.97 | 6.35 | $ | 104,695 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding at December 31, 2011 | 1,575 | $ | 5.11 | 6.89 | $ | 102,579 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exercisable at December 31, 2012 | 10,321,945 | 10.83 | 4.7 | $ | 63,086 | Fully vested and exercisable options at: September 30, 2012 | 1,278 | $ | 4.97 | 6.35 | $ | 104,695 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fully vested and exercisable options at: December 31, 2011 | 917 | $ | 5.46 | 6.66 | $ | 59,398 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Options expected to vest in the future at: December 31, 2011 | 658 | $ | 4.63 | 7.23 | $ | 43,181 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of status of the Company's awards | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nonvested Shares | Shares | Weighted-Average | Nonvested Shares | Shares | Weighted-Average | Nonvested Shares | Shares | Weighted-Average | Nonvested Shares | Shares | Weighted-Average | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Grant-Date | Grant-Date | Grant-Date | Grant-Date | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value | Fair Value | Fair Value | Fair Value | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In Thousands) | (In Thousands) | (In Thousands) | (In Thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nonvested at January 1, 2012 | 34 | $ | 5.41 | Nonvested at January 1, 2011 | 238 | $ | 39.07 | Nonvested at January 1, 2012 | 34 | $ | 5.41 | Nonvested at January 1, 2011 | 64 | $ | 4.55 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Granted | 7 | 73.42 | Granted | 140 | 69.58 | Granted | 7 | 73.42 | Granted | 9 | 48.24 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Vested | (34 | ) | 5.41 | Vested | (73 | ) | 27.95 | Vested | (34 | ) | 5.41 | Vested | (39 | ) | 14.17 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Forfeited | — | — | Forfeited | (43 | ) | 35.02 | Forfeited | — | — | Forfeited | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nonvested at September 30, 2012 | 7 | $ | 73.42 | Nonvested at December 31, 2011 | 262 | $ | 59.11 | Nonvested at September 30, 2012 | 7 | $ | 73.42 | Nonvested at December 31, 2011 | 34 | $ | 5.41 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
VEHICLE_DEPRECIATION_AND_LEASE1
VEHICLE DEPRECIATION AND LEASE CHARGES, NET - DOLLAR THRIFTY (Tables) (Dollar Thrifty Automotive Group Inc) | 9 Months Ended | 12 Months Ended | |||||||||||||||||||||||
Sep. 30, 2012 | Dec. 31, 2011 | ||||||||||||||||||||||||
Dollar Thrifty Automotive Group Inc | |||||||||||||||||||||||||
Vehicle depreciation and lease charges, net | |||||||||||||||||||||||||
Schedule of vehicle depreciation and lease charges | Vehicle depreciation and lease charges include the following (in thousands): | ||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||
2012 | 2011 | 2012 | 2011 | Year Ended December 31, | |||||||||||||||||||||
Depreciation of revenue-earning vehicles and other | $ | 94,323 | $ | 80,667 | $ | 230,391 | $ | 247,112 | 2011 | 2010 | 2009 | ||||||||||||||
Net gains from disposal of revenue-earning vehicles | (5,192 | ) | (17,368 | ) | (42,023 | ) | (43,129 | ) | (In Thousands) | ||||||||||||||||
Depreciation of revenue-earning vehicles and other | $ | 317,844 | $ | 362,284 | $ | 461,178 | |||||||||||||||||||
$ | 89,131 | $ | 63,299 | $ | 188,368 | $ | 203,983 | Net gains from disposal of revenue-earning vehicles | (46,887 | ) | (63,084 | ) | (35,086 | ) | |||||||||||
$ | 270,957 | $ | 299,200 | $ | 426,092 | ||||||||||||||||||||
Schedule of average gain on Non-Program Vehicles | |||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | Year Ended December 31, | |||||||||||||||||||||||
September 30, | September 30, | 2011 | 2010 | 2009 | |||||||||||||||||||||
2012 | 2011 | 2012 | 2011 | Number of Non-Program Vehicles sold | 39,398 | 57,100 | 50,099 | ||||||||||||||||||
Number of Non-Program Vehicles sold | 15,463 | 15,441 | 48,530 | 30,787 | Average gain on vehicles sold (per vehicle) | $ | 1,190 | $ | 1,105 | $ | 700 | ||||||||||||||
Average gain on vehicles sold (per vehicle) | $ | 336 | $ | 1,125 | $ | 866 | $ | 1,401 | |||||||||||||||||
Schedule of components of vehicle depreciation per vehicle per month | |||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | Year Ended December 31, | |||||||||||||||||||||||
September 30, | September 30, | 2011 | 2010 | 2009 | |||||||||||||||||||||
2012 | 2011 | 2012 | 2011 | Average depreciable fleet (units) | 108,127 | 103,207 | 105,301 | ||||||||||||||||||
Average depreciable fleet (units) | 120,757 | 113,719 | 113,968 | 110,125 | Average depreciation rate | $ | 245 | $ | 293 | $ | 365 | ||||||||||||||
Average depreciation rate | $ | 260 | $ | 236 | $ | 225 | $ | 249 | Average gain on vehicles sold | (36 | ) | (51 | ) | (28 | ) | ||||||||||
Average gain on vehicles sold | (14 | ) | (50 | ) | (41 | ) | (43 | ) | |||||||||||||||||
Average vehicle depreciation and lease charges, net | $ | 209 | $ | 242 | $ | 337 | |||||||||||||||||||
Average vehicle depreciation and lease charges, net | $ | 246 | $ | 186 | $ | 184 | $ | 206 | |||||||||||||||||
EARNINGS_PER_SHARE_DOLLAR_THRI1
EARNINGS PER SHARE - DOLLAR THRIFTY (Tables) (Dollar Thrifty Automotive Group Inc) | 9 Months Ended | 12 Months Ended | |||||||||||||||||||||||
Sep. 30, 2012 | Dec. 31, 2011 | ||||||||||||||||||||||||
Dollar Thrifty Automotive Group Inc | |||||||||||||||||||||||||
Earnings per share | |||||||||||||||||||||||||
Schedule of computation of weighted-average common and common equivalent shares used in the calculation of basic and diluted EPS | The computation of weighted-average common and common equivalent shares used in the calculation of basic and diluted EPS is shown in the following table (in thousands, except share and per share data): | ||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||
2012 | 2011 | 2012 | 2011 | Year Ended December 31, | |||||||||||||||||||||
Net income | $ | 55,500 | $ | 66,621 | $ | 145,298 | $ | 125,649 | 2011 | 2010 | 2009 | ||||||||||||||
(In Thousands, Except Share and Per | |||||||||||||||||||||||||
Basic EPS: | Share Data) | ||||||||||||||||||||||||
Weighted-average common shares | 27,905,118 | 28,958,718 | 28,217,067 | 28,872,747 | Net income | $ | 159,550 | $ | 131,216 | $ | 45,022 | ||||||||||||||
Basic EPS | $ | 1.99 | $ | 2.3 | $ | 5.15 | $ | 4.35 | Basic EPS: | ||||||||||||||||
Weighted average common shares | 28,965,187 | 28,623,108 | 22,687,077 | ||||||||||||||||||||||
Diluted EPS: | |||||||||||||||||||||||||
Weighted-average common shares | 27,905,118 | 28,958,718 | 28,217,067 | 28,872,747 | Basic EPS | $ | 5.51 | $ | 4.58 | $ | 1.98 | ||||||||||||||
Shares contingently issuable: | |||||||||||||||||||||||||
Stock options | 803,982 | 1,964,321 | 854,272 | 1,984,419 | Diluted EPS: | ||||||||||||||||||||
Performance awards and non-vested shares | 127,418 | 113,734 | 111,431 | 90,581 | Weighted average common shares | 28,965,187 | 28,623,108 | 22,687,077 | |||||||||||||||||
Employee compensation shares deferred | 24,577 | 46,604 | 29,805 | 48,440 | Shares contingently issuable: | ||||||||||||||||||||
Director compensation shares deferred | 224,535 | 221,452 | 223,952 | 220,554 | Stock options | 1,913,783 | 1,226,089 | 762,673 | |||||||||||||||||
Performance awards and non-vested shares | 94,261 | 125,225 | 255,775 | ||||||||||||||||||||||
Shares applicable to diluted | 29,085,630 | 31,304,829 | 29,436,527 | 31,216,741 | Employee compensation shares deferred | 47,232 | 49,374 | 105,402 | |||||||||||||||||
Director compensation shares deferred | 220,778 | 221,485 | 155,611 | ||||||||||||||||||||||
Diluted EPS | $ | 1.91 | $ | 2.13 | $ | 4.94 | $ | 4.03 | |||||||||||||||||
Shares applicable to diluted | 31,241,241 | 30,245,281 | 23,966,538 | ||||||||||||||||||||||
Diluted EPS | $ | 5.11 | $ | 4.34 | $ | 1.88 | |||||||||||||||||||
RECEIVABLES_DOLLAR_THRIFTY_Tab
RECEIVABLES - DOLLAR THRIFTY (Tables) (Dollar Thrifty Automotive Group Inc) | 9 Months Ended | 12 Months Ended | ||||||||||||||
Sep. 30, 2012 | Dec. 31, 2011 | |||||||||||||||
Dollar Thrifty Automotive Group Inc | ||||||||||||||||
Statement | ||||||||||||||||
Schedule of receivables | Receivables consist of the following (in thousands): | |||||||||||||||
September 30, | December 31, | |||||||||||||||
2012 | 2011 | |||||||||||||||
Trade accounts receivable and other | $ | 85,476 | $ | 74,403 | December 31, | |||||||||||
Vehicle manufacturer receivables | 41,078 | 21,510 | 2011 | 2010 | ||||||||||||
Car sales receivable | 3,826 | 2,287 | (In Thousands) | |||||||||||||
Trade accounts receivable and other | $ | 74,403 | $ | 68,528 | ||||||||||||
130,380 | 98,200 | Vehicle manufacturer receivables | 21,510 | 4,543 | ||||||||||||
Less: Allowance for doubtful accounts | (2,163 | ) | (2,840 | ) | Car sales receivable | 2,287 | 1,100 | |||||||||
$ | 128,217 | $ | 95,360 | 98,200 | 74,171 | |||||||||||
Less: Allowance for doubtful accounts | (2,840 | ) | (4,715 | ) | ||||||||||||
$ | 95,360 | $ | 69,456 | |||||||||||||
DEBT_AND_OTHER_OBLIGATIONS_DOL1
DEBT AND OTHER OBLIGATIONS - DOLLAR THRIFTY (Tables) | 6 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | ||||||||||||||||||||||||||||||||||||||||||||
Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | ||||||||||||||||||||||||||||||||||||||||||||||
Debt and other obligations | |||||||||||||||||||||||||||||||||||||||||||||||
Schedule of debt and other obligations | Our debt consists of the following (in millions of dollars): | Our debt consists of the following (in millions of dollars): | Debt and other obligations as of September 30, 2012 and December 31, 2011 consist of the following (in thousands): | ||||||||||||||||||||||||||||||||||||||||||||
Facility | Average | Fixed or | Maturity | June 30, | December 31, | Facility | Average Interest | Fixed or | Maturity | December 31, | December 31, | September 30, | December 31, | ||||||||||||||||||||||||||||||||||
Interest Rate | Floating | 2013 | 2012 | Rate at | Floating | 2012 | 2011 | 2012 | 2011 | ||||||||||||||||||||||||||||||||||||||
at June 30, | Interest | December 31, | Interest | Vehicle debt and other obligations | December 31, | ||||||||||||||||||||||||||||||||||||||||||
2013(1) | Rate | 2012(1) | Rate | Asset-backed medium-term notes: | 2011 | 2010 | |||||||||||||||||||||||||||||||||||||||||
Corporate Debt | Corporate Debt | Series 2011-2 notes (matures May 2015) | $ | 400,000 | $ | 400,000 | (In Thousands) | ||||||||||||||||||||||||||||||||||||||||
Senior Term Facility | 3.26 | % | Floating | Mar-18 | $ | 2,114.80 | $ | 2,125.50 | Senior Term Facility | 3.75 | % | Floating | Mar-18 | $ | 2,125.50 | $ | 1,389.50 | Series 2011-1 notes (matures February 2015) | 500,000 | 500,000 | Vehicle debt and other obligations | ||||||||||||||||||||||||||
Senior ABL Facility | 2.89 | % | Floating | Mar-16 | 1,005.80 | 195 | Senior ABL Facility | 2.47 | % | Floating | Mar-16 | 195 | — | Series 2007-1 notes (matured July 2012) | — | 500,000 | Asset-backed medium-term notes | ||||||||||||||||||||||||||||||
Senior Notes(2) | 6.58 | % | Fixed | 4/2018 - 10/2022 | 3,900.00 | 3,650.00 | Senior Notes(2) | 6.74 | % | Fixed | 10/2018 - 10/2022 | 3,650.00 | 2,638.60 | Series 2011-2 notes (matures May 2015) | $ | 400,000 | $ | — | |||||||||||||||||||||||||||||
Promissory Notes | 6.96 | % | Fixed | 6/2012 - 1/2028 | 48.7 | 48.7 | Promissory Notes | 6.96 | % | Fixed | 6/2012 - 1/2028 | 48.7 | 224.7 | 900,000 | 1,400,000 | Series 2011-1 notes (matures February 2015) | 500,000 | — | |||||||||||||||||||||||||||||
Other Corporate Debt | 3.51 | % | Floating | Various | 58.5 | 88.7 | Other Corporate Debt | 4.4 | % | Floating | Various | 88.7 | 49.6 | Discounts on asset-backed medium-term notes | (32 | ) | (45 | ) | Series 2007-1 notes (matures July 2012) | 500,000 | 500,000 | ||||||||||||||||||||||||||
Unamortized Net Premium (Corporate) | 3.2 | 3.3 | Unamortized Net (Discount) Premium (Corporate) | 3.3 | (6.9 | ) | Series 2006-1 notes (matured May 2011) | — | 500,000 | ||||||||||||||||||||||||||||||||||||||
Asset-backed medium-term notes, net of discount | 899,968 | 1,399,955 | |||||||||||||||||||||||||||||||||||||||||||||
Total Corporate Debt | 7,131.00 | 6,111.20 | Total Corporate Debt | 6,111.20 | 4,295.50 | Series 2010-3 variable funding notes (matures December 2013) | 510,000 | — | 1,400,000 | 1,000,000 | |||||||||||||||||||||||||||||||||||||
CAD Series 2012-1 notes (Canadian fleet financing) (matures August 2014) | 71,169 | — | Discounts on asset-backed medium-term notes | (45 | ) | — | |||||||||||||||||||||||||||||||||||||||||
Fleet Debt | Fleet Debt | ||||||||||||||||||||||||||||||||||||||||||||||
HVF U.S. ABS Program | HVF U.S. ABS Program | Total debt and other obligations | $ | 1,481,137 | $ | 1,399,955 | Asset-backed medium-term notes, net of discount | 1,399,955 | 1,000,000 | ||||||||||||||||||||||||||||||||||||||
HVF U.S. Fleet Variable Funding Notes: | HVF U.S. Fleet Variable Funding Notes: | Series 2010-1 variable funding note (terminated October 2011) | — | 200,000 | |||||||||||||||||||||||||||||||||||||||||||
HVF Series 2009-1(3) | 1.04 | % | Floating | Mar-14 | 2,590.00 | 2,350.00 | HVF Series 2009-1(3) | 1.11 | % | Floating | Mar-14 | 2,350.00 | 1,000.00 | CAD Series 2010-1 note (Canadian fleet financing) (terminated April 2011) | — | 49,118 | |||||||||||||||||||||||||||||||
HVF Series 2010-2(3) | N/A | Floating | Mar-13 | — | 170 | ||||||||||||||||||||||||||||||||||||||||||
2,590.00 | 2,350.00 | HVF Series 2011-2(3) | N/A | Floating | Apr-12 | — | 175 | Total vehicle debt and other obligations | 1,399,955 | 1,249,118 | |||||||||||||||||||||||||||||||||||||
HVF U.S. Fleet Medium Term Notes | 2,350.00 | 1,345.00 | Non-vehicle debt | ||||||||||||||||||||||||||||||||||||||||||||
HVF Series 2009-2(3) | 5.37 | % | Fixed | 3/2013 - 3/2015 | 807.5 | 1,095.90 | Term Loan | — | 148,125 | ||||||||||||||||||||||||||||||||||||||
HVF Series 2010-1(3) | 3.77 | % | Fixed | 2/2014 - 2/2018 | 749.8 | 749.8 | HVF U.S. Fleet Medium Term Notes | ||||||||||||||||||||||||||||||||||||||||
HVF Series 2011-1(3) | 2.86 | % | Fixed | 3/2015 - 3/2017 | 598 | 598 | HVF Series 2009-2(3) | 5.11 | % | Fixed | 3/2013 - 3/2015 | 1,095.90 | 1,384.30 | Total non-vehicle debt | — | 148,125 | |||||||||||||||||||||||||||||||
HVF Series 2013-1(3) | 1.68 | % | Fixed | 8/2016 - 8/2018 | 950 | — | HVF Series 2010-1(3) | 3.77 | % | Fixed | 2/2014 - 2/2018 | 749.8 | 749.8 | ||||||||||||||||||||||||||||||||||
HVF Series 2011-1(3) | 2.86 | % | Fixed | 3/2015 - 3/2017 | 598 | 598 | Total debt and other obligations | $ | 1,399,955 | $ | 1,397,243 | ||||||||||||||||||||||||||||||||||||
3,105.30 | 2,443.70 | ||||||||||||||||||||||||||||||||||||||||||||||
2,443.70 | 2,732.10 | ||||||||||||||||||||||||||||||||||||||||||||||
RCFC U.S. ABS Program | RCFC U.S. ABS Program | ||||||||||||||||||||||||||||||||||||||||||||||
RCFC U.S. Fleet Variable Funding Notes | RCFC U.S. Fleet Variable Funding Notes | ||||||||||||||||||||||||||||||||||||||||||||||
RCFC Series 2010-3 Notes(3)(4) | 1.03 | % | Floating | Dec-13 | 540 | 519 | RCFC Series 2010-3 Notes(3)(4) | 1.06 | % | Floating | Dec-13 | 519 | — | ||||||||||||||||||||||||||||||||||
RCFC U.S. Fleet Medium Term Notes | RCFC U.S. Fleet Medium Term Notes | ||||||||||||||||||||||||||||||||||||||||||||||
RCFC Series 2011-1 Notes(3)(4) | 2.81 | % | Fixed | Feb-15 | 500 | 500 | RCFC Series 2011-1 Notes(3)(4) | 2.81 | % | Fixed | Feb-15 | 500 | — | ||||||||||||||||||||||||||||||||||
RCFC Series 2011-2 Notes(3)(4) | 3.21 | % | Fixed | May-15 | 400 | 400 | RCFC Series 2011-2 Notes(3)(4) | 3.21 | % | Fixed | May-15 | 400 | — | ||||||||||||||||||||||||||||||||||
1,440.00 | 1,419.00 | 1,419.00 | — | ||||||||||||||||||||||||||||||||||||||||||||
Donlen ABS Program | Donlen ABS Program | ||||||||||||||||||||||||||||||||||||||||||||||
Donlen GN II Variable Funding Notes(5) | 1 | % | Floating | Dec-13 | 943.8 | 899.3 | Donlen GN II Variable Funding Notes(3) | 1.15 | % | Floating | Dec-13 | 899.3 | 811.2 | ||||||||||||||||||||||||||||||||||
Other Fleet Debt | Other Fleet Debt | ||||||||||||||||||||||||||||||||||||||||||||||
U.S. Fleet Financing Facility | 2.95 | % | Floating | Sep-15 | 171 | 166 | U.S. Fleet Financing Facility | 3.27 | % | Floating | Sep-15 | 166 | 136 | ||||||||||||||||||||||||||||||||||
European Revolving Credit Facility | 2.67 | % | Floating | Jun-15 | 357.9 | 185.3 | European Revolving Credit Facility | 2.86 | % | Floating | Jun-15 | 185.3 | 200.6 | ||||||||||||||||||||||||||||||||||
European Fleet Notes | 8.5 | % | Fixed | Jul-15 | 520.5 | 529.4 | European Fleet Notes | 8.5 | % | Fixed | Jul-15 | 529.4 | 517.7 | ||||||||||||||||||||||||||||||||||
European Securitization(3) | 2.5 | % | Floating | Jul-14 | 363 | 242.2 | European Securitization(3) | 2.48 | % | Floating | Jul-14 | 242.2 | 256.2 | ||||||||||||||||||||||||||||||||||
Hertz-Sponsored Canadian Securitization(3) | 2.14 | % | Floating | Mar-14 | 124.2 | 100.5 | Hertz-Sponsored Canadian Securitization(3) | 2.16 | % | Floating | Jun-13 | 100.5 | 68.3 | ||||||||||||||||||||||||||||||||||
Dollar Thrifty Sponsored Canadian Securitization(3)(4) | 2.13 | % | Floating | Aug-14 | 76.4 | 55.3 | Dollar Thrifty Sponsored Canadian Securitization(3)(4) | 2.13 | % | Floating | Aug-14 | 55.3 | — | ||||||||||||||||||||||||||||||||||
Australian Securitization(3)(6) | 4.17 | % | Floating | Dec-14 | 119.7 | 148.9 | Australian Securitization(3) | 4.61 | % | Floating | Dec-14 | 148.9 | 169.3 | ||||||||||||||||||||||||||||||||||
Brazilian Fleet Financing Facility | 13.89 | % | Floating | Oct-13 | 13 | 14 | Brazilian Fleet Financing Facility | 13.07 | % | Floating | Feb-13 | 14 | 23.1 | ||||||||||||||||||||||||||||||||||
Capitalized Leases | 4.08 | % | Floating | Various | 429.6 | 337.6 | Capitalized Leases | 4.4 | % | Floating | Various | 337.6 | 363.7 | ||||||||||||||||||||||||||||||||||
Unamortized Discount (Fleet) | 8.8 | 12.1 | Unamortized Net (Discount) Premium (Fleet) | 12.1 | (10.9 | ) | |||||||||||||||||||||||||||||||||||||||||
2,184.10 | 1,791.30 | 1,791.30 | 1,724.00 | ||||||||||||||||||||||||||||||||||||||||||||
Total Fleet Debt | 10,263.20 | 8,903.30 | Total Fleet Debt | 8,903.30 | 6,612.30 | ||||||||||||||||||||||||||||||||||||||||||
Total Debt | $ | 17,394.20 | $ | 15,014.50 | Total Debt | $ | 15,014.50 | $ | 10,907.80 | ||||||||||||||||||||||||||||||||||||||
Note: | -1 | ||||||||||||||||||||||||||||||||||||||||||||||
For further information on the definitions and terms of our debt, see Note 5 of the Notes to our audited annual consolidated financial statements included in our Form 10-K under the caption "Item 8—Financial Statements and Supplementary Data." | As applicable, reference is to the December 31, 2012 weighted average interest rate (weighted by principal balance). | ||||||||||||||||||||||||||||||||||||||||||||||
-1 | -2 | ||||||||||||||||||||||||||||||||||||||||||||||
As applicable, reference is to the June 30, 2013 weighted average interest rate (weighted by principal balance). | References to our "Senior Notes" include the series of Hertz's unsecured senior notes set forth in the table below. As of December 31, 2012 and December 31, 2011, the outstanding principal amount for each such series of the Senior Notes is also specified below. | ||||||||||||||||||||||||||||||||||||||||||||||
-2 | |||||||||||||||||||||||||||||||||||||||||||||||
References to our "Senior Notes" include the series of Hertz's unsecured senior notes set forth in the table below. As of June 30, 2013 and December 31, 2012, the outstanding principal amount for each such series of the Senior Notes is as specified below. | Outstanding Principal (in millions) | ||||||||||||||||||||||||||||||||||||||||||||||
Senior Notes | December 31, | December 31, | |||||||||||||||||||||||||||||||||||||||||||||
2012 | 2011 | ||||||||||||||||||||||||||||||||||||||||||||||
Outstanding Principal | 8.875% Senior Notes due January 2014 | $ | — | $ | 162.3 | ||||||||||||||||||||||||||||||||||||||||||
(in millions) | 7.875% Senior Notes due January 2014 | — | 276.3 | € | (213.5 | ) | |||||||||||||||||||||||||||||||||||||||||
Senior Notes | June 30, | December 31, | 7.50% Senior Notes due October 2018 | 700 | 700 | ||||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 6.75% Senior Notes due April 2019 | 1,250.00 | 1,000.00 | |||||||||||||||||||||||||||||||||||||||||||
4.25% Senior Notes due April 2018 | $ | 250 | $ | — | 5.875% Senior Notes due October 2020 | 700 | — | ||||||||||||||||||||||||||||||||||||||||
7.50% Senior Notes due October 2018 | 700 | 700 | 7.375% Senior Notes due January 2021 | 500 | 500 | ||||||||||||||||||||||||||||||||||||||||||
6.75% Senior Notes due April 2019 | 1,250.00 | 1,250.00 | 6.25% Senior Notes due October 2022 | 500 | — | ||||||||||||||||||||||||||||||||||||||||||
5.875% Senior Notes due October 2020 | 700 | 700 | |||||||||||||||||||||||||||||||||||||||||||||
7.375% Senior Notes due January 2021 | 500 | 500 | $ | 3,650.00 | $ | 2,638.60 | |||||||||||||||||||||||||||||||||||||||||
6.25% Senior Notes due October 2022 | 500 | 500 | |||||||||||||||||||||||||||||||||||||||||||||
$ | 3,900.00 | $ | 3,650.00 | -3 | |||||||||||||||||||||||||||||||||||||||||||
Maturity reference is to the "expected final maturity date" as opposed to the subsequent "legal maturity date." The expected final maturity date is the date by which Hertz and investors in the relevant indebtedness expect the relevant indebtedness to be repaid. The legal final maturity date is the date on which the relevant indebtedness is legally due and payable. | |||||||||||||||||||||||||||||||||||||||||||||||
-3 | -4 | ||||||||||||||||||||||||||||||||||||||||||||||
Maturity reference is to the "expected final maturity date" as opposed to the subsequent "legal maturity date." The expected final maturity date is the date by which Hertz and investors in the relevant indebtedness expect the relevant indebtedness to be repaid. The legal final maturity date is the date on which the relevant indebtedness is legally due and payable. | RCFC U.S. ABS Program and the Dollar Thrifty-Sponsored Canadian Securitization represent fleet debt acquired in connection with the Dollar Thrifty acquisition on November 19, 2012. | ||||||||||||||||||||||||||||||||||||||||||||||
-4 | |||||||||||||||||||||||||||||||||||||||||||||||
RCFC U.S. ABS Program and the Dollar Thrifty-Sponsored Canadian Securitization represent fleet debt acquired in connection with the Dollar Thrifty acquisition on November 19, 2012. | |||||||||||||||||||||||||||||||||||||||||||||||
DERIVATIVE_FINANCIAL_INSTRUMEN1
DERIVATIVE FINANCIAL INSTRUMENTS - DOLLAR THRIFTY (Tables) | 6 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of fair value of derivatives outstanding | The fair value of derivatives outstanding at September 30, 2012 and December 31, 2011 are as follows (in thousands): | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Derivative Instruments | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2012 | December 31, 2011 | September 30, 2012 | December 31, 2011 | Fair Values of Derivative Instruments | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance Sheet | Fair | Balance Sheet | Fair | Balance Sheet | Fair | Balance Sheet | Fair | Asset Derivatives | Liability Derivatives | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Location | Value | Location | Value | Location | Value | Location | Value | December 31, 2011 | December 31, 2010 | December 31, 2011 | December 31, 2010 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments | Prepaid expenses | Prepaid expenses | Accrued | Accrued | Balance | Fair | Balance | Fair | Balance | Fair | Balance | Fair | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
and other assets | and other assets | liabilities | liabilities | Sheet | Value | Sheet | Value | Sheet | Value | Sheet | Value | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate contracts | $ | 23 | $ | 548 | $ | — | $ | — | Location | Location | Location | Location | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives designated as hedging instruments | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate contracts | Prepaid expenses and other assets | $ | — | Prepaid expenses and other assets | $ | 861 | Accrued liabilities | $ | — | Accrued liabilities | $ | 31,254 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate contracts | Prepaid expenses and other assets | $ | 548 | Prepaid expenses and other assets | $ | 494 | Accrued liabilities | $ | — | Accrued liabilities | $ | 5,634 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total derivatives | $ | 548 | $ | 1,355 | $ | — | $ | 36,888 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of (gain) loss recognized on interest rate swap and cap agreements not designated as hedging instruments | The (gain) loss recognized on interest rate swap and cap agreements that do not qualify for hedge accounting treatment and thus are not designated as hedging instruments for the three and nine months ended September 30, 2012 and 2011 are as follows (in thousands): | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount of (Gain) or Loss Recognized | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
in Income on Derivative | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months | Nine Months | Amount of (Gain) | Location of (Gain) or Loss | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ended | Ended | or Loss Recognized | Recognized in Income on Derivative | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives Not | September 30, | September 30, | Location of (Gain) or Loss | in Income on | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Designated as Hedging | Recognized in Income on | Derivative | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Instruments | 2012 | 2011 | 2012 | 2011 | Derivative | Years Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate contracts | $ | 40 | $ | 523 | $ | 525 | $ | (3,367 | ) | Net (increase) decrease in | Derivatives Not Designated as | 2011 | 2010 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
fair value of derivatives | Hedging Instruments | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate contracts | $ | (3,244 | ) | $ | (28,694 | ) | Net (increase) decrease in | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
fair value of derivatives | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | (3,244 | ) | $ | (28,694 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of gain (loss), net of tax and reclassifications, recognized in OCI and the amount of gain (loss) reclassified from AOCI into income | The following table summarizes the gains and (losses) of derivatives (in millions of dollars): | Assets and liabilities measured at fair value on a recurring basis as of December 31, 2012 and 2011 were as follows (in millions): | The amount of gain (loss), net of tax and reclassification, recognized on the terminated hedging instruments in other comprehensive income (loss) ("OCI") and the amount of the gain (loss) reclassified from Accumulated OCI ("AOCI") into income for the three and nine months ended September 30, 2012 and 2011 are as follows (in thousands): | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Location of Gain or (Loss) | Amount of Gain or | 31-Dec-12 | Amount of Gain | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recognized on Derivatives | (Loss) Recognized in | Fair Value Measurements Using | or (Loss) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income on Derivatives | Total | Quoted Prices in Active Markets | Significant | Significant | Recognized in | Derivatives in Cash Flow Hedging Relationships | 2011 | 2010 | 2011 | 2010 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | for Identical | Other | Unobservable | OCI on | Amount of Gain or | Amount of Gain or | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, | Instruments | Observable | Inputs | Derivative | (Loss) Recognized in | (Loss) Reclassified | Location of (Gain) or Loss | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | (Level 1) | Inputs | (Level 3) | (Effective | Amount of Gain or | OCI on Derivative | from AOCI into Income | Reclassified from AOCI in | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives not designated as hedging | (Level 2) | Portion) | (Loss) Reclassified | (Effective Portion) | (Effective Portion) | Income (Effective Portion) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
instruments under ASC 815: | Prepaid Expenses and Other Current Assets: | from AOCI into | Years Ended December 31, | Interest expense, net of interest income | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gasoline swaps | Direct operating | $ | (2.5 | ) | $ | (3.3 | ) | Interest rate caps | $ | 0.9 | $ | — | $ | 0.9 | $ | — | Income (Effective | Interest rate contracts | $ | 10,259 | $ | 5,543 | $ | (14,229 | ) | $ | (14,069 | ) | ||||||||||||||||||||||||||||||||||||||||||
Interest rate caps | Selling, general and administrative | — | (0.1 | ) | Portion) | Location of (Gain) or | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency forward contracts | 3.4 | — | 3.4 | — | Loss Reclassified from | Total | $ | 10,259 | $ | 5,543 | $ | (14,229 | ) | $ | (14,069 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign exchange forward contracts | Selling, general and administrative | (7.1 | ) | (7.7 | ) | AOCI in Income | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign exchange options | Selling, general and administrative | — | 0.1 | Foreign exchange options | 0.2 | — | 0.2 | — | Derivatives in Cash Flow Hedging Relationships | 2012 | 2011 | 2012 | 2011 | (Effective Portion) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | (9.6 | ) | $ | (11.0 | ) | Total | $ | 4.5 | $ | — | $ | 4.5 | $ | — | Interest rate contracts | $ | — | $ | 3,591 | $ | (207 | ) | $ | (3,572 | ) | Interest expense, net | |||||||||||||||||||||||||||||||||||||||||||
of interest income | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Location of Gain or (Loss) | Amount of Gain or | Other Current Liabilities: | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recognized on Derivatives | (Loss) Recognized in | Gasoline swaps | $ | 0.1 | $ | — | $ | 0.1 | $ | — | Interest rate contracts | $ | — | $ | 10,288 | $ | (4,939 | ) | $ | (10,654 | ) | Interest expense, net | ||||||||||||||||||||||||||||||||||||||||||||||||
Income on Derivatives | of interest income | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six Months Ended | Interest rate caps | 0.9 | — | 0.9 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | Foreign currency forward contracts | 4.5 | — | 4.5 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives not designated as hedging | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
instruments under ASC 815: | Total | $ | 5.5 | $ | — | $ | 5.5 | $ | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gasoline swaps | Direct operating | $ | (0.8 | ) | $ | (1.5 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate caps | Selling, general and administrative | 0.1 | (0.1 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign exchange forward contracts | Selling, general and administrative | (2.9 | ) | (5.6 | ) | 31-Dec-11 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign exchange options | Selling, general and administrative | (0.1 | ) | 0.1 | Fair Value Measurements Using | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Quoted Prices in Active Markets | Significant | Significant | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | (3.7 | ) | $ | (7.1 | ) | for Identical | Other | Unobservable | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Instruments | Observable | Inputs | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Level 1) | Inputs | (Level 3) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Level 2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Prepaid Expenses and Other Current Assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate caps | $ | 0.5 | $ | — | $ | 0.5 | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency forward contracts | 4.4 | — | 4.4 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign exchange options | 0.1 | — | 0.1 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment | 33.2 | 33.2 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 38.2 | $ | 33.2 | $ | 5 | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Current Liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gasoline swaps | $ | 0.4 | $ | — | $ | 0.4 | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate caps | 0.4 | — | 0.4 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency forward contracts | 1.9 | — | 1.9 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate swaps | 0.2 | 0.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 2.9 | $ | — | $ | 2.9 | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The following table summarizes the (gains) and losses of derivatives (in millions of dollars): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Location of Gain or (Loss) | Amount of Gain or | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recognized on Derivatives | (Loss) Recognized in | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income on Derivatives | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2012 | 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives not designated as hedging | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
instruments under ASC 815: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gasoline swaps | Direct operating | $ | 0.7 | $ | 2.6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate caps | Selling, general and administrative | (0.8 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign exchange forward contracts | Selling, general and administrative | (15.4 | ) | (11.0 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign exchange options | Selling, general and administrative | — | (0.2 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | (15.5 | ) | $ | (8.6 | ) |
FAIR_VALUE_MEASUREMENTS_DOLLAR1
FAIR VALUE MEASUREMENTS - DOLLAR THRIFTY (Tables) | 6 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value of assets and liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of assets and liabilities measured at fair value on a recurring basis | The following table summarizes the estimated fair value of derivatives (in millions of dollars): | The following table summarizes the estimated fair value of derivatives (in millions of dollars): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Derivative Instruments(1) | Fair Value of Derivative Instruments(1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset Derivatives(2) | Liability Derivatives(2) | Asset Derivatives(2) | Liability Derivatives(2) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, | December 31, | June 30, | December 31, | December 31, | December 31, | December 31, | December 31, | Fair Value Measurements at Reporting Date Using | Fair Value Measurements at Reporting Date Using | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2012 | 2011 | 2012 | 2011 | Description | Total Fair | Quoted Prices | Significant Other | Significant | Description | Total Fair | Quoted Prices in | Significant Other | Significant | |||||||||||||||||||||||||||||||||||||||||||||||
Derivatives not designated as hedging | Derivatives not designated as hedging | Value Assets | in Active | Observable | Unobservable | Value Assets | Active Markets for | Observable | Unobservable | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
instruments under ASC 815: | instruments under ASC 815: | (Liabilities) | Markets for | Inputs | Inputs | (Liabilities) | Identical Assets | Inputs | Inputs | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gasoline swaps | $ | — | $ | — | $ | 0.9 | $ | 0.1 | Gasoline swaps | $ | — | $ | — | $ | 0.1 | $ | 0.4 | at 9/30/12 | Identical | (Level 2) | (Level 3) | at 12/31/11 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||||||||||||||||||
Assets | (in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate caps | 0.6 | 0.9 | 0.6 | 0.9 | Interest rate caps | 0.9 | 0.5 | 0.9 | 0.4 | (Level 1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | Derivative Assets | $ | 548 | $ | — | $ | 548 | $ | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign exchange forward contracts | 4.8 | 3.4 | 1.9 | 4.5 | Foreign exchange forward contracts | 3.4 | 4.4 | 4.5 | 1.9 | Derivative Assets | $ | 23 | $ | — | $ | 23 | $ | — | Deferred Compensation Plan Assets(a) | 5,752 | 5,752 | — | — | |||||||||||||||||||||||||||||||||||||||||
Deferred Compensation Plan Assets(a) | 6,998 | 6,998 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign exchange options | 0.1 | 0.2 | — | — | Interest rate swaps | — | — | — | 0.2 | Total | $ | 6,300 | $ | 5,752 | $ | 548 | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 7,021 | $ | 6,998 | $ | 23 | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total derivatives not designated as hedging | Foreign exchange options | 0.2 | 0.1 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
instruments under ASC 815 | $ | 5.5 | $ | 4.5 | $ | 3.4 | $ | 5.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total derivatives not designated as hedging | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
_______________________________________________________________________________ | instruments under ASC 815 | $ | 4.5 | $ | 5 | $ | 5.5 | $ | 2.9 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
-1 | All fair value measurements were primarily based upon significant observable (Level 2) inputs. | _______________________________________________________________________________ | Fair Value Measurements at Reporting Date Using | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements at Reporting Date Using | Description | Total Fair | Quoted Prices in | Significant Other | Significant | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
-2 | All asset derivatives are recorded in "Prepaid expenses and other assets" and all liability derivatives are recorded in "Accrued liabilities" on our condensed consolidated balance sheets. | -1 | All fair value measurements were primarily based upon significant observable (Level 2) inputs. | Description | Total Fair | Quoted Prices | Significant Other | Significant | Value Assets | Active Markets for | Observable | Unobservable | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Value Assets | in Active | Observable | Unobservable | (Liabilities) | Identical Assets | Inputs | Inputs | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
-2 | All asset derivatives are recorded in "Prepaid expenses and other assets" and all liability derivatives are recorded in "Other accrued liabilities" on our consolidated balance sheets. | (Liabilities) | Markets for | Inputs | Inputs | at 12/31/10 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
at 12/31/11 | Identical | (Level 2) | (Level 3) | (in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Level 1) | Derivative Assets | $ | 1,355 | $ | — | $ | 1,355 | $ | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | Derivative Liabilities | (36,888 | ) | — | (36,888 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Assets | $ | 548 | $ | — | $ | 548 | $ | — | Marketable Securities (available for sale) | 169 | 169 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Compensation Plan Assets(a) | 5,752 | 5,752 | — | — | Deferred Compensation Plan Assets(a) | 3,916 | — | 3,916 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 6,300 | $ | 5,752 | $ | 548 | $ | — | Total | $ | (31,448 | ) | $ | 169 | $ | (31,617 | ) | $ | — | |||||||||||||||||||||||||||||||||||||||||||||
(a) | (a) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Compensation Plan Assets consist primarily of equity securities. The Company also has an offsetting liability related to the Deferred Compensation Plan, which is not disclosed in the table as it is not independently measured at fair value, but rather is set to equal fair value of the assets held in the related rabbi trust. | Deferred Compensation Plan Assets consist primarily of equity securities. The Company also has an offsetting liability related to the Deferred Compensation Plan, which is not disclosed in the table as it is not independently measured at fair value, but rather is set to equal fair value of the assets held in the related rabbi trust. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of information about the Company's market sensitive financial instruments | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements at Reporting Date Using | Debt and other obligations at December 31, 2011 | Carrying | Fair Value | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Description | Carrying | Fair Value | Quoted Prices | Significant | Significant | Value | at 12/31/11 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Value Assets | Assets | in Active Markets | Other | Unobservable | (in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Liabilities) | (Liabilities) | for Identical Assets | Observable | Inputs | Debt: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
at 9/30/12 | at 9/30/12 | (Level 1) | Inputs | (Level 3) | Vehicle debt and obligations—floating rates | $ | 500,000 | $ | 495,820 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Level 2) | Vehicle debt and obligations—fixed rates | $ | 900,000 | $ | 899,292 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Vehicle debt and obligations-floating rates(1) | $ | (510,000 | ) | $ | (510,000 | ) | $ | — | $ | — | $ | (510,000 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Vehicle debt and obligations-fixed rates | (900,000 | ) | (926,819 | ) | — | (516,296 | ) | (410,523 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Canadian dollar denominated vehicle debt and obligations-floating rates | (71,169 | ) | (71,169 | ) | — | — | (71,169 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | (1,481,169 | ) | $ | (1,507,988 | ) | $ | — | $ | (516,296 | ) | $ | (991,692 | ) | Debt and other obligations at December 31, 2010 | Carrying | Fair Value | |||||||||||||||||||||||||||||||||||||||||||||||
Value | at 12/31/10 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
-1 | Vehicle debt and obligations—floating rates(1) | $ | 1,200,000 | $ | 1,178,875 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The fair value of the Series 2010-3 VFN excludes the impact of the related interest rate cap. | Vehicle debt and obligations—Canadian dollar denominated | $ | 49,118 | $ | 49,118 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-vehicle debt—Term Loan | $ | 148,125 | $ | 146,459 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements at Reporting Date Using | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Description | Carrying | Fair Value | Quoted Prices | Significant | Significant | -1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Value Assets | Assets | in Active Markets | Other | Unobservable | Includes $500 million relating to the Series 2006-1 notes, the $500 million Series 2007-1 notes swapped from floating interest rates to fixed interest rates, and the $200 million Series 2010-1 VFN. The fair value excludes the impact of the related interest rate swaps and cap. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Liabilities) | (Liabilities) | for Identical Assets | Observable | Inputs | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
at 12/31/11 | at 12/31/11 | (Level 1) | Inputs | (Level 3) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Level 2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Vehicle debt and obligations-floating rates | $ | (500,000 | ) | $ | (495,820 | ) | $ | — | $ | (495,820 | ) | $ | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Vehicle debt and obligations-fixed rates | (900,000 | ) | (899,292 | ) | — | (499,292 | ) | (400,000 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | (1,400,000 | ) | $ | (1,395,112 | ) | $ | — | $ | (995,112 | ) | $ | (400,000 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
STOCKHOLDERS_EQUITY_DOLLAR_THR1
STOCKHOLDERS' EQUITY - DOLLAR THRIFTY (Tables) | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||
Jun. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2011 | ||||||||||||||||||||||||||||||||||||||||||||
Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | |||||||||||||||||||||||||||||||||||||||||||||
STOCKHOLDERS' EQUITY | ||||||||||||||||||||||||||||||||||||||||||||||
Schedule of components of accumulated other comprehensive income (loss) | Changes in the accumulated other comprehensive loss balance by component (net of tax) were as follows (in millions of dollars): | |||||||||||||||||||||||||||||||||||||||||||||
Pension and Other Post-Employment Benefits | Foreign Currency Items | Unrealized Losses on Terminated Net Investment Hedges | Unrealized Gains on Available for Sale Securities | Other | Accumulated Other Comprehensive Loss | |||||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2013 | $ | (109.8 | ) | $ | 102.7 | $ | (19.4 | ) | $ | — | $ | (0.4 | ) | $ | (26.9 | ) | ||||||||||||||||||||||||||||||
Interest Rate | Foreign | Accumulated | Interest Rate | Foreign | Accumulated | |||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) before reclassification | 0.3 | (55.5 | ) | — | 2.1 | 0.1 | (53.0 | ) | Swap | Currency | Other | SWAP | Currency | Other | ||||||||||||||||||||||||||||||||
Translation | Comprehensive | Translation | Comprehensive | |||||||||||||||||||||||||||||||||||||||||||
Income (Loss) | Income (Loss) | |||||||||||||||||||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income | 5.1 | 1.5 | — | — | — | 6.6 | (In Thousands) | (In Thousands) | ||||||||||||||||||||||||||||||||||||||
Balance, January 1, 2012 | $ | (8,488 | ) | $ | 871 | $ | (7,617 | ) | Balance, January 1, 2009 | $ | (32,952 | ) | $ | 3,564 | $ | (29,388 | ) | |||||||||||||||||||||||||||||
Interest rate swap, net of tax | 8,488 | — | 8,488 | Interest rate swap and cap adjustment, net of tax | 8,662 | — | 8,662 | |||||||||||||||||||||||||||||||||||||||
Net current period other comprehensive income (loss) | 5.4 | (54.0 | ) | — | 2.1 | 0.1 | (46.4 | ) | Foreign currency translation adjustment | — | 5,491 | 5,491 | Foreign currency translation adjustment | — | 2,352 | 2,352 | ||||||||||||||||||||||||||||||
Balance at June 30, 2013 | $ | (104.4 | ) | $ | 48.7 | $ | (19.4 | ) | $ | 2.1 | $ | (0.3 | ) | $ | (73.3 | ) | Balance, September 30, 2012 | $ | — | $ | 6,362 | $ | 6,362 | Balance, December 31, 2009 | (24,290 | ) | 5,916 | (18,374 | ) | |||||||||||||||||
Interest rate swap and cap adjustment, net of tax | 5,543 | — | 5,543 | |||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | 502 | 502 | |||||||||||||||||||||||||||||||||||||||||||
Pension and Other Post-Employment Benefits | Foreign Currency Items | Unrealized Losses on Terminated Net Investment Hedges | Unrealized Gains on Available for Sale Securities | Other | Accumulated Other Comprehensive Loss | Balance, December 31, 2010 | (18,747 | ) | 6,418 | (12,329 | ) | |||||||||||||||||||||||||||||||||||
Balance at January 1, 2012 | $ | (99.6 | ) | $ | 91.3 | $ | (19.4 | ) | $ | 0.3 | $ | (1.0 | ) | $ | (28.4 | ) | Interest rate swap and cap adjustment, net of tax | 10,259 | — | 10,259 | ||||||||||||||||||||||||||
Foreign currency translation adjustment | — | (5,547 | ) | (5,547 | ) | |||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) before reclassification | — | (16.5 | ) | — | 3.1 | 0.1 | (13.3 | ) | ||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2011 | $ | (8,488 | ) | $ | 871 | $ | (7,617 | ) | ||||||||||||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income | 3.7 | — | — | — | — | 3.7 | ||||||||||||||||||||||||||||||||||||||||
Net current period Other comprehensive income (loss) | 3.7 | (16.5 | ) | — | 3.1 | 0.1 | (9.6 | ) | ||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2012 | $ | (95.9 | ) | $ | 74.8 | $ | (19.4 | ) | $ | 3.4 | $ | (0.9 | ) | $ | (38.0 | ) | ||||||||||||||||||||||||||||||
Recovered_Sheet4
GUARANTOR AND NON-GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - DOLLAR THRIFTY (Tables) | 6 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GUARANTOR AND NON-GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of condensed consolidating balance sheets | CONDENSED CONSOLIDATING BALANCE SHEET | CONDENSED CONSOLIDATING BALANCE SHEET | DOLLAR THRIFTY AUTOMOTIVE GROUP, INC. AND SUBSIDIARIES | CONDENSED CONSOLIDATING BALANCE SHEET | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
30-Jun-13 | 31-Dec-12 | CONDENSED CONSOLIDATING BALANCE SHEET | 31-Dec-11 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In Millions of Dollars) | (In Thousands of Dollars) | 30-Sep-12 | (In Thousands of Dollars) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In Thousands of Dollars) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Guarantor | Non- | Eliminations | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | Parent | Guarantor | Non- | Eliminations | The Hertz | Guarantor | Non- | Eliminations | Total | Subsidiaries | Guarantor | Consolidated | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | (The Hertz | Subsidiaries | Guarantor | Corporation & | Subsidiaries | Guarantor | Consolidated | Subsidiaries | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | Corporation) | Subsidiaries | Subsidiaries | Subsidiaries | ASSETS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ASSETS | ASSETS | ASSETS | Cash and cash equivalents | $ | 446,239 | $ | 62,409 | $ | — | $ | 508,648 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 87.5 | $ | 24.5 | $ | 371 | $ | — | $ | 483 | Cash and cash equivalents | $ | 24,602 | $ | 2,578 | $ | 506,055 | $ | — | $ | 533,235 | Cash and cash equivalents | $ | 402,243 | $ | 54,626 | $ | — | $ | 456,869 | Restricted cash and investments | 1,355 | 351,910 | — | 353,265 | |||||||||||||||||||||||||||||||||
Restricted cash and investments | 6,185 | 243,959 | — | 250,144 | Receivables, net | 86,184 | 34,294 | (25,118 | ) | 95,360 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted cash and cash equivalents | 33.7 | 17 | 342.5 | — | 393.2 | Restricted cash and cash equivalents | 32,681 | 14,535 | 524,418 | — | 571,634 | Receivables, net | 86,835 | 69,618 | (28,236 | ) | 128,217 | Intercompany | (100,436 | ) | 154,999 | (54,563 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||
Intercompany | (92,323 | ) | 147,270 | (54,947 | ) | — | Prepaid expenses and other assets | 49,163 | 20,503 | (3,707 | ) | 65,959 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables, less allowance for doubtful accounts | 500.8 | 482.1 | 719.3 | (46.2 | ) | 1,656.00 | Receivables, less allowance for doubtful accounts | 544,454 | 292,467 | 1,049,675 | — | 1,886,596 | Prepaid expenses and other assets | 59,770 | 13,409 | (1,199 | ) | 71,980 | Revenue-earning vehicles, net | 33,057 | 1,434,778 | — | 1,467,835 | |||||||||||||||||||||||||||||||||||||||||||||
Revenue-earning vehicles, net | 24,629 | 1,850,978 | — | 1,875,607 | Property and equipment, net | 82,588 | 1,690 | — | 84,278 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Due from Hertz affiliate | 1,042.70 | 1,842.70 | 3,691.70 | (6,576.3 | ) | 0.8 | Due from Hertz affiliate | 1,047,986 | 59,181 | 2,199,247 | (3,293,605 | ) | 12,809 | Property and equipment, net | 76,208 | 1,679 | — | 77,887 | Investment in subsidiaries | 581,003 | — | (581,003 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||
Investment in subsidiaries | 825,502 | — | (825,502 | ) | — | Income taxes receivable | 18,702 | 84 | — | 18,786 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories, at lower cost or market | 30.8 | 39.8 | 57.7 | — | 128.3 | Inventories, at lower cost or market | 24,422 | 34,101 | 47,205 | — | 105,728 | Income taxes receivable | 4,364 | 89 | — | 4,453 | Software, net | 21,535 | — | — | 21,535 | |||||||||||||||||||||||||||||||||||||||||||||||
Software, net | 19,438 | — | — | 19,438 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Prepaid expenses and other assets | 2,894.70 | 244.3 | 407.2 | (2,783.0 | ) | 763.2 | Prepaid expenses and other assets | 2,570,539 | 183,573 | 203,678 | (2,496,288 | ) | 461,502 | Total assets | $ | 1,219,390 | $ | 2,060,667 | $ | (664,391 | ) | $ | 2,615,666 | |||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 1,412,851 | $ | 2,381,628 | $ | (909,884 | ) | $ | 2,884,595 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue earning equipment, net | 175.3 | 1,893.00 | 13,637.70 | — | 15,706.00 | Revenue earning equipment, net | 104,207 | 1,734,325 | 11,069,804 | — | 12,908,336 | LIABILITIES AND EQUITY | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LIABILITIES AND EQUITY | LIABILITIES: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and equipment, net | 897.6 | 315.1 | 252.9 | — | 1,465.60 | Property and equipment, net | 865,694 | 206,332 | 364,360 | — | 1,436,386 | LIABILITIES: | Accounts payable | $ | 45,827 | $ | 8,573 | $ | (23 | ) | $ | 54,377 | ||||||||||||||||||||||||||||||||||||||||||||||
Accounts payable | $ | 44,288 | $ | 3,484 | $ | (3 | ) | $ | 47,769 | Accrued liabilities | 148,820 | 4,167 | (28,802 | ) | 124,185 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment in subsidiaries, net | 6,833.10 | 1,367.90 | — | (8,201.0 | ) | — | Investment in subsidiaries, net | 6,964,916 | 506,123 | — | (7,471,039 | ) | — | Accrued liabilities | 161,841 | 4,157 | (29,432 | ) | 136,566 | Income tax payable / (receivable) | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Income tax payable / (receivable) | — | — | — | — | Deferred income taxes | 341,408 | 1,554 | — | 342,962 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other intangible assets, net | 70.2 | 3,848.10 | 50.2 | — | 3,968.50 | Other intangible assets, net | 74,606 | 2,352,342 | 1,605,163 | — | 4,032,111 | Deferred income taxes | 391,431 | 1,093 | — | 392,524 | Vehicle insurance reserves | 75,663 | 10,852 | — | 86,515 | |||||||||||||||||||||||||||||||||||||||||||||||
Vehicle insurance reserves | 71,050 | 11,308 | — | 82,358 | Debt and other obligations | — | 1,454,518 | (54,563 | ) | 1,399,955 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill | 106.2 | 1,035.60 | 224.5 | — | 1,366.30 | Goodwill | 106,210 | 133,923 | 1,101,739 | — | 1,341,872 | Debt and other obligations | — | 1,536,084 | (54,947 | ) | 1,481,137 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities | 611,718 | 1,479,664 | (83,388 | ) | 2,007,994 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 12,672.60 | $ | 11,110.10 | $ | 19,754.70 | $ | (17,606.5 | ) | $ | 25,930.90 | Total assets | $ | 12,360,317 | $ | 5,519,480 | $ | 18,671,344 | $ | (13,260,932 | ) | $ | 23,290,209 | Total liabilities | 668,610 | 1,556,126 | (84,382 | ) | 2,140,354 | |||||||||||||||||||||||||||||||||||||||
COMMITMENTS AND CONTINGENCIES | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LIABILITIES AND EQUITY | LIABILITIES AND EQUITY | COMMITMENTS AND CONTINGENCIES | EQUITY: | 607,672 | 581,003 | (581,003 | ) | 607,672 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EQUITY | 744,241 | 825,502 | (825,502 | ) | 744,241 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Due to Hertz affiliate | $ | 2,097.10 | $ | 2,498.80 | $ | 1,980.40 | $ | (6,576.3 | ) | $ | — | Due to Hertz affiliate | $ | 2,254,223 | $ | 628,275 | $ | 411,107 | $ | (3,293,605 | ) | $ | — | Total liabilities and equity | $ | 1,219,390 | $ | 2,060,667 | $ | (664,391 | ) | $ | 2,615,666 | |||||||||||||||||||||||||||||||||||
Total liabilities and equity | $ | 1,412,851 | $ | 2,381,628 | $ | (909,884 | ) | $ | 2,884,595 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts payable | 165.2 | 267.9 | 1,051.40 | — | 1,484.50 | Accounts payable | 239,247 | 157,742 | 602,072 | — | 999,061 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued liabilities | 642.7 | 242.2 | 343.6 | (46.2 | ) | 1,182.30 | Accrued liabilities | 605,680 | 84,992 | 487,788 | — | 1,178,460 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DOLLAR THRIFTY AUTOMOTIVE GROUP, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued taxes | 60.3 | 33.9 | 1,335.00 | (1,245.6 | ) | 183.6 | Accrued taxes | 54,357 | 11,511 | 1,003,127 | (901,681 | ) | 167,314 | CONDENSED CONSOLIDATING BALANCE SHEET | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
31-Dec-11 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | 7,042.30 | 68.5 | 10,283.40 | — | 17,394.20 | Debt | 6,190,040 | 49,445 | 8,774,989 | — | 15,014,474 | (In Thousands of Dollars) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Public liability and property damage | 93 | 58.5 | 176 | — | 327.5 | Public liability and property damage | 99,261 | 10,390 | 222,581 | — | 332,232 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Guarantor | Non- | Eliminations | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred taxes on income | — | 2,232.70 | 2,091.50 | (1,537.4 | ) | 2,786.80 | Deferred taxes on income | — | 1,776,199 | 2,499,548 | (1,594,607 | ) | 2,681,140 | Subsidiaries | Guarantor | Consolidated | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Subsidiaries | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities | 10,100.60 | 5,402.50 | 17,261.30 | (9,405.5 | ) | 23,358.90 | Total liabilities | 9,442,808 | 2,718,554 | 14,001,212 | (5,789,893 | ) | 20,372,681 | ASSETS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 446,239 | $ | 62,409 | $ | — | $ | 508,648 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity: | Equity: | Restricted cash and investments | 1,355 | 351,910 | — | 353,265 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables, net | 86,184 | 34,294 | (25,118 | ) | 95,360 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The Hertz Corporation and Subsidiaries stockholder's equity | 2,572.00 | 5,707.60 | 2,493.40 | (8,201.0 | ) | 2,572.00 | The Hertz Corporation and Subsidiaries stockholder's equity | 2,917,509 | 2,800,926 | 4,670,113 | (7,471,039 | ) | 2,917,509 | Intercompany | (100,436 | ) | 154,999 | (54,563 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Prepaid expenses and other assets | 49,163 | 20,503 | (3,707 | ) | 65,959 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interest | — | — | — | — | — | Noncontrolling interest | — | — | 19 | — | 19 | Revenue-earning vehicles, net | 33,057 | 1,434,778 | — | 1,467,835 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and equipment, net | 82,588 | 1,690 | — | 84,278 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total equity | 2,572.00 | 5,707.60 | 2,493.40 | (8,201.0 | ) | 2,572.00 | Total equity | 2,917,509 | 2,800,926 | 4,670,132 | (7,471,039 | ) | 2,917,528 | Investment in subsidiaries | 581,003 | — | (581,003 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Income taxes receivable | 18,702 | 84 | — | 18,786 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities and equity | $ | 12,672.60 | $ | 11,110.10 | $ | 19,754.70 | $ | (17,606.5 | ) | $ | 25,930.90 | Total liabilities and equity | $ | 12,360,317 | $ | 5,519,480 | $ | 18,671,344 | $ | (13,260,932 | ) | $ | 23,290,209 | Software, net | 21,535 | — | — | 21,535 | ||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 1,219,390 | $ | 2,060,667 | $ | (664,391 | ) | $ | 2,615,666 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | CONDENSED CONSOLIDATING BALANCE SHEET | LIABILITIES AND EQUITY | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
31-Dec-12 | 31-Dec-11 | LIABILITIES: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In Millions of Dollars) | (In Thousands of Dollars) | Accounts payable | $ | 45,827 | $ | 8,573 | $ | (23 | ) | $ | 54,377 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued liabilities | 148,820 | 4,167 | (28,802 | ) | 124,185 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax payable / (receivable) | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | Parent | Guarantor | Non- | Eliminations | The Hertz | Deferred income taxes | 341,408 | 1,554 | — | 342,962 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | (The Hertz | Subsidiaries | Guarantor | Corporation & | Vehicle insurance reserves | 75,663 | 10,852 | — | 86,515 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | Corporation) | Subsidiaries | Subsidiaries | Debt and other obligations | — | 1,454,518 | (54,563 | ) | 1,399,955 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ASSETS | ASSETS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 24.6 | $ | 6.5 | $ | 502.1 | $ | — | $ | 533.2 | Cash and cash equivalents | $ | 565,002 | $ | 7,385 | $ | 358,821 | $ | — | $ | 931,208 | Total liabilities | 611,718 | 1,479,664 | (83,388 | ) | 2,007,994 | |||||||||||||||||||||||||||||||||||||||||
Restricted cash and cash equivalents | 32.7 | 17.1 | 521.8 | — | 571.6 | Restricted cash and cash equivalents | 44,663 | 28,130 | 235,246 | — | 308,039 | COMMITMENTS AND CONTINGENCIES | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EQUITY: | 607,672 | 581,003 | (581,003 | ) | 607,672 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables, less allowance for doubtful accounts | 544.5 | 444 | 924.7 | (26.6 | ) | 1,886.60 | Receivables, less allowance for doubtful accounts | 297,292 | 218,754 | 1,100,336 | — | 1,616,382 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities and equity | $ | 1,219,390 | $ | 2,060,667 | $ | (664,391 | ) | $ | 2,615,666 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Due from Hertz affiliate | 1,048.00 | 2,023.50 | 3,491.70 | (6,550.4 | ) | 12.8 | Due from Hertz affiliate | 655,411 | 65,972 | 1,194,041 | (1,915,424 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories, at lower cost or market | 24.4 | 41.2 | 40.1 | — | 105.7 | Inventories, at lower cost or market | 22,440 | 26,541 | 34,997 | — | 83,978 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Prepaid expenses and other assets | 2,570.50 | 277.8 | 173.3 | (2,560.1 | ) | 461.5 | Prepaid expenses and other assets | 2,088,579 | 32,974 | 137,189 | (1,842,608 | ) | 416,134 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue earning equipment, net | 104.2 | 1,678.50 | 11,125.60 | — | 12,908.30 | Revenue earning equipment, net | 167,304 | 1,505,867 | 8,432,238 | — | 10,105,409 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and equipment, net | 865.7 | 321.9 | 248.8 | — | 1,436.40 | Property and equipment, net | 824,381 | 170,874 | 256,599 | — | 1,251,854 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment in subsidiaries, net | 6,964.90 | 1,260.90 | — | (8,225.8 | ) | — | Investment in subsidiaries, net | 4,413,289 | 460,201 | — | (4,873,490 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other intangible assets, net | 74.6 | 3,893.30 | 64.2 | — | 4,032.10 | Other intangible assets, net | 94,682 | 2,363,617 | 103,935 | — | 2,562,234 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill | 106.2 | 1,018.90 | 216.8 | — | 1,341.90 | Goodwill | 100,221 | 67,228 | 224,645 | — | 392,094 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 12,360.30 | $ | 10,983.60 | $ | 17,309.10 | $ | (17,362.9 | ) | $ | 23,290.10 | Total assets | $ | 9,273,264 | $ | 4,947,543 | $ | 12,078,047 | $ | (8,631,522 | ) | $ | 17,667,332 | |||||||||||||||||||||||||||||||||||||||||||||
LIABILITIES AND EQUITY | LIABILITIES AND EQUITY | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Due to Hertz affiliate | $ | 2,254.20 | $ | 2,421.60 | $ | 1,874.60 | $ | (6,550.4 | ) | $ | — | Due to Hertz affiliate | $ | 1,251,347 | $ | 266,604 | $ | 397,885 | $ | (1,915,424 | ) | $ | 412 | |||||||||||||||||||||||||||||||||||||||||||||
Accounts payable | 239.2 | 193.9 | 566 | — | 999.1 | Accounts payable | 188,695 | 165,258 | 543,536 | — | 897,489 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued liabilities | 605.7 | 45 | 554.3 | (26.6 | ) | 1,178.40 | Accrued liabilities | 607,673 | 209,263 | 309,402 | — | 1,126,338 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued taxes | 54.4 | 29.1 | 1,049.30 | (965.5 | ) | 167.3 | Accrued taxes | 54,559 | 134,186 | (13,889 | ) | (11,872 | ) | 162,984 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | 6,190.00 | 67.7 | 8,756.80 | — | 15,014.50 | Debt | 4,434,274 | 4,237 | 6,469,338 | — | 10,907,849 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Public liability and property damage | 99.3 | 52.8 | 180.1 | — | 332.2 | Public liability and property damage | 107,881 | 14,025 | 159,628 | — | 281,534 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred taxes on income | — | 2,205.60 | 2,070.10 | (1,594.6 | ) | 2,681.10 | Deferred taxes on income | — | 1,449,171 | 2,043,437 | (1,830,736 | ) | 1,661,872 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities | 9,442.80 | 5,015.70 | 15,051.20 | (9,137.1 | ) | 20,372.60 | Total liabilities | 6,644,429 | 2,242,744 | 9,909,337 | (3,758,032 | ) | 15,038,478 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity: | Equity: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The Hertz Corporation and Subsidiaries stockholder's equity | 2,917.50 | 5,967.90 | 2,257.90 | (8,225.8 | ) | 2,917.50 | The Hertz Corporation and Subsidiaries stockholder's equity | 2,628,835 | 2,704,799 | 2,168,691 | (4,873,490 | ) | 2,628,835 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interest | — | — | — | — | — | Noncontrolling interest | — | — | 19 | — | 19 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total equity | 2,917.50 | 5,967.90 | 2,257.90 | (8,225.8 | ) | 2,917.50 | Total equity | 2,628,835 | 2,704,799 | 2,168,710 | (4,873,490 | ) | 2,628,854 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities and equity | $ | 12,360.30 | $ | 10,983.60 | $ | 17,309.10 | $ | (17,362.9 | ) | $ | 23,290.10 | Total liabilities and equity | $ | 9,273,264 | $ | 4,947,543 | $ | 12,078,047 | $ | (8,631,522 | ) | $ | 17,667,332 | |||||||||||||||||||||||||||||||||||||||||||||
Schedule of condensed consolidating statement of income | CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | DOLLAR THRIFTY AUTOMOTIVE GROUP, INC. AND SUBSIDIARIES | CONDENSED CONSOLIDATING STATEMENT OF INCOME | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Three Months Ended June 30, 2013 | For the Year Ended December 31, 2012 | CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME | FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In Millions of Dollars) | (In Thousands of Dollars) | FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2012 | (In Thousands of Dollars) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In Thousands of Dollars) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | Parent | Guarantor | Non-Guarantor | Eliminations | The Hertz | Guarantor | Non- | Eliminations | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | (The Hertz | Subsidiaries | Subsidiaries | Corporation & | Guarantor | Non- | Eliminations | Total | Subsidiaries | Guarantor | Consolidated | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | Corporation) | Subsidiaries | Subsidiaries | Guarantor | Consolidated | Subsidiaries | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total revenues | $ | 1,147.00 | $ | 662.8 | $ | 1,617.50 | $ | (712.7 | ) | $ | 2,714.60 | Total revenues | $ | 4,259,049 | $ | 975,500 | $ | 6,255,039 | $ | (2,468,781 | ) | $ | 9,020,807 | Subsidiaries | Total revenues | $ | 1,480,660 | $ | 436,441 | $ | (368,173 | ) | $ | 1,548,928 | ||||||||||||||||||||||||||||||||||
Total revenues | $ | 1,151,812 | $ | 346,437 | $ | (285,999 | ) | $ | 1,212,250 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses: | Expenses: | COSTS AND EXPENSES: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Direct operating | 2,384,829 | 553,099 | 1,857,860 | — | 4,795,788 | COSTS AND EXPENSES: | Direct vehicle and operating | 708,477 | 51,008 | (8,017 | ) | 751,468 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Direct operating | 618.8 | 357.1 | 430.3 | (0.3 | ) | 1,405.90 | Depreciation of revenue earning equipment and lease charges | 2,402,032 | 198,322 | 2,016,585 | (2,468,781 | ) | 2,148,158 | Direct vehicle and operating | 558,350 | 40,861 | (2,748 | ) | 596,463 | Vehicle depreciation and lease charges, net | 378,898 | 251,526 | (359,467 | ) | 270,957 | |||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative | 448,100 | 123,300 | 374,181 | — | 945,581 | Vehicle depreciation and lease charges, net | 302,648 | 168,446 | (282,726 | ) | 188,368 | Selling, general and administrative | 184,769 | 6,937 | (663 | ) | 191,043 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation of revenue earning equipment and lease charges | 608 | 168.9 | 576.4 | (712.2 | ) | 641.1 | Interest expense, net of interest income | 253,437 | 39,679 | 299,770 | — | 592,886 | Selling, general and administrative | 143,258 | 4,719 | (498 | ) | 147,479 | Interest expense, net | 36,003 | 41,485 | (26 | ) | 77,462 | ||||||||||||||||||||||||||||||||||||||||||||
Other (income) expense, net | (10,656 | ) | (19 | ) | 46,217 | — | 35,542 | Interest expense, net | 11,156 | 33,472 | (27 | ) | 44,601 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative | 122.3 | 64.7 | 88 | (0.2 | ) | 274.8 | Total costs and expenses | 1,308,147 | 350,956 | (368,173 | ) | 1,290,930 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total expenses | 5,477,742 | 914,381 | 4,594,613 | (2,468,781 | ) | 8,517,955 | Total costs and expenses | 1,015,412 | 247,498 | (285,999 | ) | 976,911 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | 88 | 8.5 | 73.7 | — | 170.2 | (Increase) decrease in fair value of derivatives | (5,634 | ) | 2,390 | — | (3,244 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes and equity in earnings (losses) of subsidiaries | (1,218,693 | ) | 61,119 | 1,660,426 | — | 502,852 | (Increase) decrease in fair value of derivatives | — | 525 | — | 525 | INCOME / (LOSS) BEFORE INCOME TAXES and EQUITY IN EARNINGS OF SUBS | 178,147 | 83,095 | — | 261,242 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest income | — | (1.6 | ) | (0.4 | ) | — | (2.0 | ) | (Provision) benefit for taxes on income | 476,444 | (44,846 | ) | (658,671 | ) | — | (227,073 | ) | INCOME / (LOSS) BEFORE INCOME TAXES and EQUITY IN EARNINGS OF SUBS | 136,400 | 98,414 | — | 234,814 | INCOME TAX EXPENSE | 100,772 | 920 | — | 101,692 | |||||||||||||||||||||||||||||||||||||||||
Equity in earnings (losses) of subsidiaries (net of tax) | 1,018,028 | 45,922 | — | (1,063,950 | ) | — | INCOME TAX EXPENSE | 89,212 | 304 | — | 89,516 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other (income) expense, net | 14.5 | (2.2 | ) | (13.4 | ) | — | (1.1 | ) | NET INCOME / (LOSS) BEFORE EQUITY IN EARNINGS OF SUBS | 77,375 | 82,175 | — | 159,550 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder | $ | 275,779 | $ | 62,195 | $ | 1,001,755 | $ | (1,063,950 | ) | $ | 275,779 | NET INCOME / (LOSS) BEFORE EQUITY IN EARNINGS OF SUBS | 47,188 | 98,110 | — | 145,298 | EQUITY IN EARNINGS OF SUBSIDIARIES | 82,175 | — | (82,175 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||
Total expenses | 1,451.60 | 595.4 | 1,154.60 | (712.7 | ) | 2,488.90 | EQUITY IN EARNINGS OF SUBSIDIARIES | 98,110 | — | (98,110 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NET INCOME / (LOSS) | $ | 159,550 | $ | 82,175 | $ | (82,175 | ) | $ | 159,550 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes and equity in earnings (losses) of subsidiaries | (304.6 | ) | 67.4 | 462.9 | — | 225.7 | NET INCOME / (LOSS) | $ | 145,298 | $ | 98,110 | $ | (98,110 | ) | $ | 145,298 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Provision) benefit for taxes on income | 109.3 | (25.2 | ) | (179.9 | ) | — | (95.8 | ) | For the Year Ended December 31, 2011 | COMPREHENSIVE INCOME / (LOSS) | $ | 159,277 | $ | 103,277 | $ | (103,277 | ) | $ | 159,277 | |||||||||||||||||||||||||||||||||||||||||||||||||
(In Thousands of Dollars) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity in earnings (losses) of subsidiaries (net of tax) | 325.2 | 56.8 | — | (382.0 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder | $ | 129.9 | $ | 99 | $ | 283 | $ | (382.0 | ) | $ | 129.9 | Parent | Guarantor | Non-Guarantor | Eliminations | The Hertz | DOLLAR THRIFTY AUTOMOTIVE GROUP, INC. AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Subsidiaries | Corporation & | CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2011 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | Total revenues | $ | 4,068,310 | $ | 809,093 | $ | 5,733,827 | $ | (2,312,850 | ) | $ | 8,298,380 | (In Thousands of Dollars) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2013 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In Millions of Dollars) | Expenses: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Direct operating | 2,262,371 | 497,053 | 1,806,954 | — | 4,566,378 | Guarantor | Non- | Eliminations | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation of revenue earning equipment and lease charges | 1,996,733 | 180,807 | 2,041,049 | (2,312,850 | ) | 1,905,739 | Subsidiaries | Guarantor | Consolidated | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | Selling, general and administrative | 326,794 | 85,414 | 332,909 | — | 745,117 | Subsidiaries | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | Interest expense, net of interest income | 299,099 | 27,226 | 318,378 | — | 644,703 | Total revenues | $ | 1,140,588 | $ | 332,591 | $ | (277,981 | ) | $ | 1,195,198 | |||||||||||||||||||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | Other (income) expense, net | 62,396 | (18 | ) | 170 | — | 62,548 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total revenues | $ | 2,201.60 | $ | 1,284.90 | $ | 3,120.60 | $ | (1,455.9 | ) | $ | 5,151.20 | COSTS AND EXPENSES: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total expenses | 4,947,393 | 790,482 | 4,499,460 | (2,312,850 | ) | 7,924,485 | Direct vehicle and operating | 549,971 | 40,151 | (6,323 | ) | 583,799 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses: | Vehicle depreciation and lease charges, net | 288,433 | 186,677 | (271,127 | ) | 203,983 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes, noncontrolling interest and equity in earnings (losses) of subsidiaries | (879,083 | ) | 18,611 | 1,234,367 | — | 373,895 | Selling, general and administrative | 140,345 | 5,810 | (514 | ) | 145,641 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Direct operating | 1,231.70 | 710 | 815.9 | (0.5 | ) | 2,757.10 | (Provision) benefit for taxes on income (loss) | 342,469 | (10,016 | ) | (476,299 | ) | — | (143,846 | ) | Interest expense, net | 29,552 | 29,364 | (17 | ) | 58,899 | |||||||||||||||||||||||||||||||||||||||||||||||
Equity in earnings (losses) of subsidiaries (net of tax) | 747,103 | 26,215 | — | (773,318 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation of revenue earning equipment and lease charges | 1,269.40 | 321.3 | 1,092.60 | (1,455.2 | ) | 1,228.10 | Total costs and expenses | 1,008,301 | 262,002 | (277,981 | ) | 992,322 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | 210,489 | 34,810 | 758,068 | (773,318 | ) | 230,049 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative | 229.5 | 124.4 | 172.6 | (0.2 | ) | 526.3 | Less: Net income attributable to noncontrolling interest | — | — | (19,560 | ) | — | (19,560 | ) | (Increase) decrease in fair value of derivatives | (5,634 | ) | 2,267 | — | (3,367 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
INCOME / (LOSS) BEFORE INCOME TAXES and EQUITY IN EARNINGS OF SUBS | 137,921 | 68,322 | — | 206,243 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | 169.1 | 18.8 | 145.6 | — | 333.5 | Net income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder | $ | 210,489 | $ | 34,810 | $ | 738,508 | $ | (773,318 | ) | $ | 210,489 | INCOME TAX EXPENSE | 80,270 | 324 | — | 80,594 | ||||||||||||||||||||||||||||||||||||||||||||||
Interest income | — | (3.1 | ) | (0.7 | ) | — | (3.8 | ) | NET INCOME / (LOSS) BEFORE EQUITY IN EARNINGS OF SUBS | 57,651 | 67,998 | — | 125,649 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
EQUITY IN EARNINGS OF SUBSIDIARIES | 67,998 | — | (67,998 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other (income) expense, net | 14.3 | (2.2 | ) | (13.8 | ) | — | (1.7 | ) | CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Year Ended December 31, 2010 | NET INCOME / (LOSS) | $ | 125,649 | $ | 67,998 | $ | (67,998 | ) | $ | 125,649 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total expenses | 2,914.00 | 1,169.20 | 2,212.20 | (1,455.9 | ) | 4,839.50 | (In Thousands of Dollars) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
COMPREHENSIVE INCOME / (LOSS) | $ | 127,358 | $ | 60,093 | $ | (60,093 | ) | $ | 127,358 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes and equity in earnings (losses) of subsidiaries | (712.4 | ) | 115.7 | 908.4 | — | 311.7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | The Hertz | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Provision) benefit for taxes on income | 257.5 | (43.1 | ) | (369.7 | ) | — | (155.3 | ) | (The Hertz | Subsidiaries | Subsidiaries | Corporation & | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity in earnings (losses) of subsidiaries (net of tax) | 611.3 | 111.6 | — | (722.9 | ) | — | Total revenues | $ | 3,961,435 | $ | 701,264 | $ | 5,350,348 | $ | (2,450,513 | ) | $ | 7,562,534 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder | $ | 156.4 | $ | 184.2 | $ | 538.7 | $ | (722.9 | ) | $ | 156.4 | Expenses: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Direct operating | 2,217,864 | 452,674 | 1,612,856 | — | 4,283,394 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation of revenue earning equipment and lease charges | 1,938,416 | 200,252 | 2,179,992 | (2,450,513 | ) | 1,868,147 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative | 320,192 | 67,739 | 276,511 | — | 664,442 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense, net of interest income | 297,276 | 20,068 | 396,880 | — | 714,224 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | Other (income) expense, net | 9,915 | (3 | ) | (9,907 | ) | — | 5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Three Months Ended June 30, 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In Millions of Dollars) | Total expenses | 4,783,663 | 740,730 | 4,456,332 | (2,450,513 | ) | 7,530,212 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes, noncontrolling interest and equity in earnings (losses) of subsidiaries | (822,228 | ) | (39,466 | ) | 894,016 | — | 32,322 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | (Provision) benefit for taxes on income (loss) | 314,692 | 10,718 | (358,732 | ) | — | (33,322 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | Equity in earnings (losses) of subsidiaries (net of tax) | 489,153 | (5,268 | ) | — | (483,885 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total revenues | $ | 1,074.90 | $ | 233.1 | $ | 1,493.10 | $ | (576.0 | ) | $ | 2,225.10 | Net income (loss) | (18,383 | ) | (34,016 | ) | 535,284 | (483,885 | ) | (1,000 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Less: Net income attributable to noncontrolling interest | — | — | (17,383 | ) | — | (17,383 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Direct operating | 609.4 | 141.1 | 438.4 | — | 1,188.90 | Net income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder | $ | (18,383 | ) | $ | (34,016 | ) | $ | 517,901 | $ | (483,885 | ) | $ | (18,383 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation of revenue earning equipment and lease charges | 560.6 | 48 | 487.2 | (576.0 | ) | 519.8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative | 94.4 | 31.4 | 80.8 | — | 206.6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | 56 | 9.1 | 74.2 | — | 139.3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest income | — | (0.2 | ) | (0.3 | ) | — | (0.5 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other (income) expense, net | — | — | (0.6 | ) | — | (0.6 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total expenses | 1,320.40 | 229.4 | 1,079.70 | (576.0 | ) | 2,053.50 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes noncontrolling interest and equity in earnings (losses) of subsidiaries | (245.5 | ) | 3.7 | 413.4 | — | 171.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Provision) benefit for taxes on income | 90.7 | (1.3 | ) | (160.1 | ) | — | (70.7 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity in earnings (losses) of subsidiaries (net of tax) | 255.7 | (33.8 | ) | — | (221.9 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder | $ | 100.9 | $ | (31.4 | ) | $ | 253.3 | $ | (221.9 | ) | $ | 100.9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In Millions of Dollars) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total revenues | $ | 2,042.90 | $ | 442.9 | $ | 2,834.30 | $ | (1,134.0 | ) | $ | 4,186.10 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Direct operating | 1,181.20 | 274.4 | 847.5 | — | 2,303.10 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation of revenue earning equipment and lease charges | 1,099.30 | 92.4 | 977.2 | (1,134.0 | ) | 1,034.90 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative | 198.6 | 56.9 | 158.8 | — | 414.3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | 119.6 | 19 | 150.2 | — | 288.8 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest income | (0.1 | ) | (0.4 | ) | (1.1 | ) | — | (1.6 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other (income) expense, net | — | — | (1.0 | ) | — | (1.0 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total expenses | 2,598.60 | 442.3 | 2,131.60 | (1,134.0 | ) | 4,038.50 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes noncontrolling interest and equity in earnings (losses) of subsidiaries | (555.7 | ) | 0.6 | 702.7 | — | 147.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Provision) benefit for taxes on income | 201.9 | (0.6 | ) | (296.2 | ) | — | (94.9 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity in earnings (losses) of subsidiaries (net of tax) | 406.5 | (22.6 | ) | — | (383.9 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder | $ | 52.7 | $ | (22.6 | ) | $ | 406.5 | $ | (383.9 | ) | $ | 52.7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of condensed consolidating statement of cash flows | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | DOLLAR THRIFTY AUTOMOTIVE GROUP, INC. AND SUBSIDIARIES | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2013 | For the Year Ended December 31, 2012 | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In Millions of Dollars) | (In Thousands of Dollars) | FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2012 | (In Thousands of Dollars) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In Thousands of Dollars) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | The Hertz | Guarantor | Non- | Eliminations | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | (The Hertz | Subsidiaries | Subsidiaries | Corporation & | Guarantor | Non- | Eliminations | Total | Subsidiaries | Guarantor | Consolidated | |||||||||||||||||||||||||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | Corporation) | Subsidiaries | Subsidiaries | Guarantor | Consolidated | Subsidiaries | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | Net cash provided by (used in) operating activities | $ | 1,677,648 | $ | 690,292 | $ | 1,155,789 | $ | (775,317 | ) | $ | 2,748,412 | Subsidiaries | Net cash provided by operating activities | $ | 306,521 | $ | 347,234 | $ | (86,461 | ) | $ | 567,294 | |||||||||||||||||||||||||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | (365.7 | ) | $ | 425.1 | $ | 1,811.90 | $ | (405.3 | ) | $ | 1,466.00 | Net cash provided by operating activities | $ | 206,985 | $ | 319,585 | $ | (91,800 | ) | $ | 434,770 | CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||||||||||||||||||||||||||||||||
Cash flows from investing activities: | CASH FLOWS FROM INVESTING ACTIVITIES: | Revenue-earning vehicles—Purchases | (58,522 | ) | (1,110,010 | ) | — | (1,168,532 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash flows from investing activities: | Net change in restricted cash and cash equivalents | 11,981 | 13,596 | (287,182 | ) | — | (261,605 | ) | Revenue-earning vehicles—Purchases | (38,350 | ) | (1,342,267 | ) | — | (1,380,617 | ) | Revenue-earning vehicles—Proceeds from sales | 42,746 | 715,020 | — | 757,766 | |||||||||||||||||||||||||||||||||||||||||||||||
Net change in restricted cash and cash equivalents | (1.0 | ) | 0.2 | 176.2 | — | 175.4 | Revenue earning equipment expenditures | (88,120 | ) | (763,610 | ) | (8,761,509 | ) | — | (9,613,239 | ) | Revenue-earning vehicles—Proceeds from sales | 26,623 | 730,468 | — | 757,091 | Net change in cash & cash equivalents required minimum balance | 100,000 | — | — | 100,000 | ||||||||||||||||||||||||||||||||||||||||||
Proceeds from disposal of revenue earning equipment | 79,390 | 276,342 | 6,769,364 | — | 7,125,096 | Net change in restricted cash and investments | (4,817 | ) | 108,462 | — | 103,645 | Net change in restricted cash and investments | 16 | (75,477 | ) | — | (75,461 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue earning equipment expenditures | (87.9 | ) | (347.7 | ) | (6,389.9 | ) | — | (6,825.5 | ) | Property and equipment expenditures | (173,053 | ) | (32,022 | ) | (107,711 | ) | — | (312,786 | ) | Property, equipment and software—Purchases | (13,817 | ) | (84 | ) | — | (13,901 | ) | Property, equipment and software—Purchases | (16,543 | ) | (90 | ) | — | (16,633 | ) | |||||||||||||||||||||||||||||||||
Proceeds from disposal of property and equipment | 67,370 | 11,839 | 58,485 | — | 137,694 | Property, equipment and software—Proceeds from sales | 3,491 | — | — | 3,491 | Property, equipment and software—Proceeds from sales | 330 | 29 | — | 359 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from disposal of revenue earning equipment | 47.7 | 16.9 | 3,678.20 | — | 3,742.80 | Capital contributions to subsidiaries | (4,267,118 | ) | — | — | 4,267,118 | — | Dividends received | 79,000 | — | (79,000 | ) | — | Dividends received | 266,675 | — | (266,675 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||
Return of capital from subsidiaries | 1,829,256 | — | — | (1,829,256 | ) | — | Investment in subsidiary | (231,600 | ) | — | 231,600 | — | Investment in subsidiary | (247,713 | ) | — | 247,713 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Property and equipment expenditures | (99.1 | ) | (18.0 | ) | (51.0 | ) | — | (168.1 | ) | Loan to Parent From Non-Guarantor | — | — | (385,108 | ) | 385,108 | — | Intercompany | (35,029 | ) | (56,793 | ) | 91,822 | — | Intercompany | (139,869 | ) | 8,993 | 130,876 | — | |||||||||||||||||||||||||||||||||||||||
Acquisitions, net of cash acquired | (1,708,520 | ) | (196,648 | ) | — | — | (1,905,168 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from disposal of property and equipment | 24.6 | 5.5 | 12.4 | — | 42.5 | Proceeds from disposal of business | — | — | 84,497 | — | 84,497 | Net cash provided by/(used in) investing activities | (214,499 | ) | (560,214 | ) | 244,422 | (530,291 | ) | Net cash provided by/(used in) investing activities | (52,880 | ) | (461,535 | ) | 111,914 | (402,501 | ) | |||||||||||||||||||||||||||||||||||||||||
Other investing activities | — | — | (1,779 | ) | — | (1,779 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital contributions to subsidiaries | (485.7 | ) | — | — | 485.7 | — | CASH FLOWS FROM FINANCING ACTIVITIES: | CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash provided by (used in) investing activities | (4,248,814 | ) | (690,503 | ) | (2,630,943 | ) | 2,822,970 | (4,747,290 | ) | Debt and other obligations: | Debt and other obligations: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Return of capital from subsidiaries | 651 | — | — | (651.0 | ) | — | Proceeds from vehicle debt and other obligations | — | 581,169 | — | 581,169 | Proceeds from vehicle debt and other obligations | — | 1,592,466 | (54,563 | ) | 1,537,903 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Cash flows from financing activities: | Payments of vehicle debt and other obligations | — | (500,000 | ) | — | (500,000 | ) | Payments of vehicle debt and other obligations | — | (1,396,350 | ) | 9,277 | (1,387,073 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan to Parent/Guarantor from Non-Guarantor | — | — | 57 | (57.0 | ) | — | Proceeds from issuance of long-term debt | 2,210,000 | — | 27,280 | — | 2,237,280 | Issuance of common shares | 1,694 | — | — | 1,694 | Payments—non-vehicle debt | (148,125 | ) | — | — | (148,125 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Payment of long-term debt | (650,407 | ) | (18 | ) | (301,719 | ) | — | (952,144 | ) | Net settlement of employee withholding taxes on share-based awards | (1,215 | ) | — | — | (1,215 | ) | Issuance of common shares | 4,774 | — | — | 4,774 | |||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions, net of cash acquired | — | (2.8 | ) | (226.4 | ) | — | (229.2 | ) | Short-term borrowings: | Purchases of common stock for the treasury | (29,136 | ) | — | — | (29,136 | ) | Net settlement of employee withholding taxes on share-based awards | (3,205 | ) | — | — | (3,205 | ) | |||||||||||||||||||||||||||||||||||||||||||||
Proceeds | — | — | 438,387 | — | 438,387 | Financing issue costs | (7,825 | ) | (945 | ) | — | (8,770 | ) | Early termination of interest rate swap | (8,815 | ) | — | — | (8,815 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from disposal of business | — | — | — | — | — | Payments | (26,775 | ) | — | (1,253,368 | ) | — | (1,280,143 | ) | Dividends paid | — | (79,000 | ) | 79,000 | — | Forward stock repurchase agreement | (100,000 | ) | — | — | (100,000 | ) | |||||||||||||||||||||||||||||||||||||||||
Proceeds (payments) under the revolving lines of credit, net | 220,000 | (1,262 | ) | 1,054,426 | — | 1,273,164 | Capital contribution from Parent | — | 231,622 | (231,622 | ) | — | Financing issue costs | (2,038 | ) | (12,719 | ) | — | (14,757 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
Other investing activities | — | — | (2.0 | ) | — | (2.0 | ) | Capital contributions received from parent | — | — | 4,267,118 | (4,267,118 | ) | — | Dividends paid | — | (266,675 | ) | 266,675 | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Loan to Parent From Non-Guarantor | 385,108 | — | — | (385,108 | ) | — | Net cash provided by/(used in) financing activities | (36,482 | ) | 232,846 | (152,622 | ) | 43,742 | Capital contribution from Parent | — | 246,842 | (246,842 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Net cash provided by (used in) investing activities | 49.6 | (345.9 | ) | (2,745.5 | ) | (222.3 | ) | (3,264.1 | ) | Payment of dividends and return of capital | — | — | (2,604,573 | ) | 2,604,573 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends paid | (25,000 | ) | — | — | — | (25,000 | ) | CHANGE IN CASH AND CASH EQUIVALENTS | (43,996 | ) | (7,783 | ) | — | (51,779 | ) | Net cash provided by/(used in) financing activities | (257,409 | ) | 163,564 | (25,453 | ) | (119,298 | ) | |||||||||||||||||||||||||||||||||||||||||||||
Cash flows from financing activities: | Proceeds from employee stock purchase plan | 4,275 | — | — | — | 4,275 | CASH AND CASH EQUIVALENTS: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan with Hertz Global Holdings, Inc. | (13,220 | ) | — | — | — | (13,220 | ) | Beginning of Period | 446,239 | 62,409 | — | 508,648 | CHANGE IN CASH AND CASH EQUIVALENTS | (3,768 | ) | 49,263 | — | 45,495 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from issuance of long-term debt | 250 | — | 954.4 | — | 1,204.40 | Purchase of noncontrolling interest | (38,000 | ) | — | — | — | (38,000 | ) | CASH AND CASH EQUIVALENTS: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payment of financing costs | (35,215 | ) | (3,316 | ) | (10,902 | ) | — | (49,433 | ) | End of Period | $ | 402,243 | $ | 54,626 | $ | — | $ | 456,869 | Beginning of Period | 450,007 | 13,146 | — | 463,153 | |||||||||||||||||||||||||||||||||||||||||||||
Payment of long-term debt | (22.8 | ) | — | (297.9 | ) | — | (320.7 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash provided by (used in) financing activities | 2,030,766 | (4,596 | ) | 1,616,649 | (2,047,653 | ) | 1,595,166 | End of Period | $ | 446,239 | $ | 62,409 | $ | — | $ | 508,648 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term borrowings: | DOLLAR THRIFTY AUTOMOTIVE GROUP, INC. AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effect of foreign exchange rate changes on cash and cash equivalents | — | — | 5,739 | — | 5,739 | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds | — | — | 332 | — | 332 | FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2011 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net change in cash and cash equivalents during the period | (540,400 | ) | (4,807 | ) | 147,234 | — | (397,973 | ) | (In Thousands of Dollars) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payments | — | — | (435.9 | ) | — | (435.9 | ) | Cash and cash equivalents at beginning of period | 565,002 | 7,385 | 358,821 | — | 931,208 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds under the revolving lines of credit | 1,360.00 | 1.6 | 2,318.50 | — | 3,680.10 | Cash and cash equivalents at end of period | $ | 24,602 | $ | 2,578 | $ | 506,055 | $ | — | $ | 533,235 | Guarantor | Non- | Eliminations | Total | ||||||||||||||||||||||||||||||||||||||||||||||||
Subsidiaries | Guarantor | Consolidated | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payments under the revolving lines of credit | (735.0 | ) | (5.0 | ) | (1,477.9 | ) | — | (2,217.9 | ) | Subsidiaries | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash provided by operating activities | $ | 268,555 | $ | 262,206 | $ | (72,151 | ) | $ | 458,610 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital contributions received from parent | — | — | 485.7 | (485.7 | ) | — | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Year Ended December 31, 2011 | Revenue-earning vehicles—Purchases | (46,155 | ) | (937,724 | ) | — | (983,879 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan to Parent/Guarantor from Non-Guarantor | — | (57.0 | ) | — | 57 | — | (In Thousands of Dollars) | Revenue-earning vehicles—Proceeds from sales | 31,135 | 460,873 | — | 492,008 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net change in cash & cash equivalents required minimum balance | 100,000 | — | — | 100,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payment of dividends and return of capital | — | — | (1,056.3 | ) | 1,056.30 | — | Net change in restricted cash and investments | 270 | 76,036 | — | 76,306 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | The Hertz | Property, equipment and software—Purchases | (11,108 | ) | (88 | ) | — | (11,196 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends paid to Parent | (479.7 | ) | — | — | — | (479.7 | ) | (The Hertz | Subsidiaries | Subsidiaries | Corporation & | Property, equipment and software—Proceeds from sales | 324 | 29 | — | 353 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Dividends received | 191,675 | — | (191,675 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from employee stock purchase plan | 2.4 | — | — | — | 2.4 | Net cash provided by (used in) operating activities | $ | 1,000,597 | $ | 773,170 | $ | 1,038,124 | $ | (553,370 | ) | $ | 2,258,521 | Investment in subsidiary | (249,389 | ) | — | 249,389 | — | |||||||||||||||||||||||||||||||||||||||||||||
Intercompany | (119,298 | ) | 5,583 | 113,715 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan with Hertz Global Holdings, Inc. | 12 | — | — | — | 12 | Cash flows from investing activities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net change in restricted cash and cash equivalents | (28,570 | ) | (2,662 | ) | (70,534 | ) | — | (101,766 | ) | Net cash provided by/(used in) investing activities | (102,546 | ) | (395,291 | ) | 171,429 | (326,408 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Payment of financing costs | (7.9 | ) | (0.8 | ) | (11.9 | ) | — | (20.6 | ) | Revenue earning equipment expenditures | (142,134 | ) | (670,056 | ) | (8,642,121 | ) | — | (9,454,311 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from disposal of revenue earning equipment | 163,330 | 170,522 | 7,516,590 | — | 7,850,442 | CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash provided by (used in) financing activities | 379 | (61.2 | ) | 810.7 | 627.6 | 1,756.10 | Property and equipment expenditures | (189,562 | ) | (29,696 | ) | (62,437 | ) | — | (281,695 | ) | Debt and other obligations: | |||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from disposal of property and equipment | 23,952 | 9,263 | 20,599 | — | 53,814 | Proceeds from vehicle debt and other obligations | — | 1,192,226 | (54,323 | ) | 1,137,903 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effect of foreign exchange rate changes on cash and cash equivalents | — | — | (8.2 | ) | — | (8.2 | ) | Capital contributions to subsidiaries | (3,549,088 | ) | — | — | 3,549,088 | — | Payments of vehicle debt and other obligations | — | (1,081,350 | ) | 9,277 | (1,072,073 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Return of capital from subsidiaries | 2,590,025 | — | — | (2,590,025 | ) | — | Payments—non-vehicle debt | (148,125 | ) | — | — | (148,125 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net change in cash and cash equivalents during the period | 62.9 | 18 | (131.1 | ) | — | (50.2 | ) | Loan to Parent from Non-Guarantor | — | — | (490,273 | ) | 490,273 | — | Issuance of common shares | 2,921 | — | — | 2,921 | |||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions, net of cash acquired | (214,384 | ) | (2,100 | ) | (10,597 | ) | — | (227,081 | ) | Net settlement of employee withholding taxes on share-based awards | (3,205 | ) | — | — | (3,205 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents at beginning of period | 24.6 | 6.5 | 502.1 | — | 533.2 | Purchase of short-term investments, net | (32,891 | ) | — | — | — | (32,891 | ) | Financing issue costs | (1,997 | ) | (11,306 | ) | — | (13,303 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Other investing activities | — | (13,602 | ) | 14,188 | — | 586 | Dividends paid | — | (191,675 | ) | 191,675 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents at end of period | $ | 87.5 | $ | 24.5 | $ | 371 | $ | — | $ | 483 | Capital contribution from Parent | — | 245,907 | (245,907 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash provided by (used in) investing activities | (1,379,322 | ) | (538,331 | ) | (1,724,585 | ) | 1,449,336 | (2,192,902 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash provided by/(used in) financing activities | (150,406 | ) | 153,802 | (99,278 | ) | (95,882 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | Proceeds from issuance of long-term debt | 2,455,309 | — | 607,170 | — | 3,062,479 | CHANGE IN CASH AND CASH EQUIVALENTS | 15,603 | 20,717 | — | 36,320 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2012 | Payment of long-term debt | (3,596,295 | ) | (17 | ) | (52,988 | ) | — | (3,649,300 | ) | CASH AND CASH EQUIVALENTS: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In Millions of Dollars) | Short-term borrowings: | Beginning of Period | 450,007 | 13,146 | — | 463,153 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds | — | — | 460,890 | — | 460,890 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payments | (29,224 | ) | — | (1,164,832 | ) | — | (1,194,056 | ) | End of Period | $ | 465,610 | $ | 33,863 | $ | — | $ | 499,473 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds (payments) under the revolving lines of credit, net | (29,128 | ) | (229,778 | ) | 201,577 | — | (57,329 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | Distributions to noncontrolling interest | — | — | (23,100 | ) | — | (23,100 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | Capital contributions received from parent | — | — | 3,549,088 | (3,549,088 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | Payment of dividends and return of capital | (22,950 | ) | — | (3,143,395 | ) | 3,143,395 | (22,950 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | (219.0 | ) | $ | 334.2 | $ | 1,409.30 | $ | (341.5 | ) | $ | 1,183.00 | Proceeds from employee stock purchase plan | 3,577 | — | — | — | 3,577 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Loan to Parent from Non-Guarantor | 490,273 | — | — | (490,273 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash flows from investing activities: | Loan from Hertz Global Holdings, Inc. | (984 | ) | — | — | — | (984 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payment of financing costs | (81,229 | ) | (2,817 | ) | (7,436 | ) | — | (91,482 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net change in restricted cash and cash equivalents | 12.6 | 18.2 | 99.3 | — | 130.1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash provided by (used in) financing activities | (810,651 | ) | (232,612 | ) | 426,974 | (895,966 | ) | (1,512,255 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue earning equipment expenditures | (73.8 | ) | (334.1 | ) | (5,303.1 | ) | — | (5,711.0 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effect of foreign exchange rate changes on cash and cash equivalents | — | — | 3,838 | — | 3,838 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from disposal of revenue earning equipment | 54.4 | 162.6 | 3,391.30 | — | 3,608.30 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net decrease in cash and cash equivalents during the period | (1,189,376 | ) | 2,227 | (255,649 | ) | — | (1,442,798 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and equipment expenditures | (80.2 | ) | (24.2 | ) | (32.8 | ) | — | (137.2 | ) | Cash and cash equivalents at beginning of period | 1,754,378 | 5,158 | 614,470 | — | 2,374,006 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from disposal of property and equipment | 44.3 | 4.2 | 7.9 | — | 56.4 | Cash and cash equivalents at end of period | $ | 565,002 | $ | 7,385 | $ | 358,821 | $ | — | $ | 931,208 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital contributions to subsidiaries | (2,215.9 | ) | — | — | 2,215.90 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Return of capital from subsidiaries | 2,220.60 | — | — | (2,220.6 | ) | — | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Year Ended December 31, 2010 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions, net of cash acquired | — | (161.8 | ) | — | — | (161.8 | ) | (In Thousands of Dollars) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan to Parent from Non-Guarantor | — | — | (18.3 | ) | 18.3 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | The Hertz | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other investing activities | — | — | (0.6 | ) | — | (0.6 | ) | (The Hertz | Subsidiaries | Subsidiaries | Corporation & | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash provided by (used in) investing activities | (38.0 | ) | (335.1 | ) | (1,856.3 | ) | 13.6 | (2,215.8 | ) | Net cash provided by (used in) operating activities | $ | 337,055 | $ | 88,941 | $ | 2,193,486 | $ | (381,555 | ) | $ | 2,237,927 | |||||||||||||||||||||||||||||||||||||||||||||||
Cash flows from financing activities: | Cash flows from investing activities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from issuance of long-term debt | 260 | — | 10.5 | — | 270.5 | Net change in restricted cash and cash equivalents | 19,932 | (17,514 | ) | 158,098 | — | 160,516 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue earning equipment expenditures | (188,057 | ) | (96,452 | ) | (8,156,363 | ) | — | (8,440,872 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payment of long-term debt | (637.3 | ) | — | (5.8 | ) | — | (643.1 | ) | Proceeds from disposal of revenue earning equipment | 169,451 | 75,139 | 7,273,856 | — | 7,518,446 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and equipment expenditures | (92,415 | ) | (14,137 | ) | (72,657 | ) | — | (179,209 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term borrowings: | Proceeds from disposal of property and equipment | 4,311 | 10,416 | 24,178 | — | 38,905 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital contributions to subsidiaries | (1,544,332 | ) | — | — | 1,544,332 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds | — | — | 246.7 | — | 246.7 | Return of capital from subsidiaries | 1,877,095 | — | — | (1,877,095 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions, net of cash acquired | (35 | ) | (43,789 | ) | (3,747 | ) | — | (47,571 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payments | (26.8 | ) | — | (629.4 | ) | — | (656.2 | ) | Purchase of short-term investments, net | 3,183 | 94 | 214 | — | 3,491 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other investing activities | — | — | 2,726 | — | 2,726 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds under the revolving lines of credit | 1,360.00 | 1.9 | 2,173.60 | — | 3,535.50 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash provided by (used in) investing activities | 249,133 | (86,243 | ) | (773,695 | ) | (332,763 | ) | (943,568 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payments under the revolving lines of credit | (950.0 | ) | (2.9 | ) | (1,038.8 | ) | — | (1,991.7 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase of noncontrolling interest | (38.0 | ) | — | — | — | (38.0 | ) | Proceeds from issuance of long-term debt | 1,209,866 | — | 1,425,847 | — | 2,635,713 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payment of long-term debt | (73,342 | ) | (68 | ) | (2,880,823 | ) | — | (2,954,233 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital contributions received from parent | — | — | 2,215.90 | (2,215.9 | ) | — | Short-term borrowings: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds | — | — | 490,490 | — | 490,490 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payment of dividends and return of capital | (12.5 | ) | — | (2,562.1 | ) | 2,562.10 | (12.5 | ) | Payments | (2,615 | ) | — | (968,334 | ) | — | (970,949 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds (payments) under the revolving lines of credit, net | (18,907 | ) | (3,515 | ) | 1,048,492 | — | 1,026,070 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repayment of Loan to Parent from Non-Guarantor | 18.3 | — | — | (18.3 | ) | — | Distributions to noncontrolling interest | — | — | (18,200 | ) | — | (18,200 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital contributions received from parent | — | — | 1,544,332 | (1,544,332 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from employee stock purchase plan | 2 | — | — | — | 2 | Payment of dividends and return of capital | (23,000 | ) | — | (2,258,650 | ) | 2,258,650 | (23,000 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from employee stock purchase plan | 3,208 | — | — | — | 3,208 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan from Hertz Global Holdings, Inc. | (13.9 | ) | — | — | — | (13.9 | ) | Loan from Hertz Global Holdings, Inc. | (6,173 | ) | — | — | — | (6,173 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Excess tax benefits from exercise of stock | (258 | ) | — | — | — | (258 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payment of financing costs | (4.2 | ) | (1.5 | ) | (1.2 | ) | — | (6.9 | ) | Payment of financing costs | (29,111 | ) | — | (49,040 | ) | — | (78,151 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash provided by (used in) financing activities | (42.4 | ) | (2.5 | ) | 409.4 | 327.9 | 692.4 | Net cash provided by (used in) financing activities | 1,059,668 | (3,583 | ) | (1,665,886 | ) | 714,318 | 104,517 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Effect of foreign exchange rate changes on cash and cash equivalents | — | — | (4.8 | ) | — | (4.8 | ) | Effect of foreign exchange rate changes on cash and cash equivalents | — | — | (10,337 | ) | — | (10,337 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net decrease in cash and cash equivalents during the period | (299.4 | ) | (3.4 | ) | (42.4 | ) | — | (345.2 | ) | Net decrease in cash and cash equivalents during the period | 1,645,856 | (885 | ) | (256,432 | ) | — | 1,388,539 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents at beginning of period | 108,522 | 6,043 | 870,902 | — | 985,467 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents at beginning of period | 565 | 7.4 | 358.8 | — | 931.2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents at end of period | $ | 1,754,378 | $ | 5,158 | $ | 614,470 | $ | — | $ | 2,374,006 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents at end of period | $ | 265.6 | $ | 4 | $ | 316.4 | $ | — | $ | 586 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CASH_AND_INVESTMENTS_DOLLAR_TH1
CASH AND INVESTMENTS - DOLLAR THRIFTY (Details) (Dollar Thrifty Automotive Group Inc, USD $) | Sep. 30, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Millions, unless otherwise specified | |||
Dollar Thrifty Automotive Group Inc | |||
Cash and investments | |||
Book overdrafts | $13.30 | $19 | $17 |
SHAREBASED_PAYMENT_PLANS_DOLLA2
SHARE-BASED PAYMENT PLANS - DOLLAR THRIFTY (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 1 Months Ended | |||||||||||||||||||||||||||||||||
Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2010 | Feb. 28, 2008 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | 31-May-13 | Nov. 30, 2012 | Mar. 31, 2012 | 30-May-13 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2012 | Sep. 30, 2011 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | 31-May-09 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2012 | Sep. 30, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | Sep. 30, 2011 | Sep. 30, 2012 | Feb. 29, 2012 | Dec. 31, 2011 | Mar. 31, 2011 | Dec. 31, 2010 | Mar. 31, 2010 | Mar. 31, 2009 | Sep. 30, 2012 | Sep. 30, 2011 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2011 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | Jan. 31, 2012 | Jan. 31, 2011 | Jan. 31, 2010 | Jan. 31, 2009 | |
Option Rights | Option Rights | Option Rights | Restricted Stock Units | Restricted Stock Units | Restricted Stock Units | Restricted Stock Units | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | ||||||||
Option Rights | Option Rights | Option Rights | Option Rights | Option Rights | Option Rights | Option Rights | Option Rights | Option Rights | Option Rights | Option Rights | Performance Shares | Performance Shares | Performance Shares | Performance Shares | Performance Shares | Performance Shares | Performance Shares | Performance Shares | Performance Shares | Performance Shares | Performance Shares | Performance Shares | Restricted Stock Units | Restricted Stock Units | Restricted Stock Units | Restricted Stock Units | Restricted Stock Units | Restricted Stock Units | Restricted Stock Units | Restricted Stock Units | Restricted Stock Units | ||||||||||||||||||||||
Maximum | Maximum | Maximum | Non-employee directors | Non-employee directors | Non-employee directors | Non-employee directors | |||||||||||||||||||||||||||||||||||||||||||||||
SHARE-BASED PAYMENT PLANS | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of shares authorized for issuance | 32,700,000 | 2,726,312 | 2,726,312 | 2,083,550 | |||||||||||||||||||||||||||||||||||||||||||||||||
Number of shares available for future issuance | 1,168,546 | 1,168,546 | 247,517 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation costs recognized (in dollars) | $11,700,000 | $7,500,000 | $19,700,000 | $15,000,000 | $36,600,000 | $1,900,000 | $1,000,000 | $5,900,000 | $3,100,000 | $4,100,000 | $4,800,000 | $6,200,000 | |||||||||||||||||||||||||||||||||||||||||
Stock-based employee compensation charges, tax | 4,500,000 | 2,900,000 | 7,600,000 | 5,800,000 | 14,200,000 | 600,000 | 300,000 | 2,200,000 | 1,200,000 | 1,600,000 | 1,900,000 | 2,700,000 | |||||||||||||||||||||||||||||||||||||||||
Number of awards that may be granted under the plan during any year to any participant | 285,000 | 285,000 | 160,000 | 160,000 | |||||||||||||||||||||||||||||||||||||||||||||||||
Grant-date fair value of options vested (in dollars) | 9,000,000 | 17,400,000 | 21,600,000 | 1,600,000 | 1,600,000 | 4,000,000 | 900,000 | 200,000 | |||||||||||||||||||||||||||||||||||||||||||||
Options vested (in shares) | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Unrecognized expenses (in dollars) | 0 | 0 | 200,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Options, Outstanding [Roll Forward] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding at the beginning of the period (in shares) | 1,575,000 | 2,277,000 | 1,575,000 | 2,277,000 | |||||||||||||||||||||||||||||||||||||||||||||||||
Granted (in shares) | 1,120,000 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Exercised (in shares) | -297,000 | -672,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding at the end of the period (in shares) | 1,278,000 | 1,278,000 | 1,575,000 | 2,277,000 | |||||||||||||||||||||||||||||||||||||||||||||||||
Fully vested and exercisable options at the end of the period (in shares) | 1,278,000 | 1,278,000 | 917,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted Average Exercise Price [Roll Forward] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding at the beginning of the period (in dollars per share) | $5.11 | $5.73 | $5.11 | $5.73 | |||||||||||||||||||||||||||||||||||||||||||||||||
Exercised (in dollars per share) | $5.70 | $7.10 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding at the end of the period (in dollars per share) | $4.97 | $4.97 | $5.11 | $5.73 | |||||||||||||||||||||||||||||||||||||||||||||||||
Fully vested and exercisable options at the end of the period (in dollars per share) | $4.97 | $4.97 | $5.46 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted-Average Remaining Contractual Term | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding at the beginning of the period | 6 years 4 months 6 days | 6 years 10 months 20 days | 7 years 7 months 10 days | ||||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding at the end of the period | 6 years 4 months 6 days | 6 years 10 months 20 days | 7 years 7 months 10 days | ||||||||||||||||||||||||||||||||||||||||||||||||||
Fully vested and exercisable options at the end of the period | 6 years 4 months 6 days | 6 years 7 months 28 days | |||||||||||||||||||||||||||||||||||||||||||||||||||
Aggregate Intrinsic Value | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding at the beginning of the period (in dollars) | 102,579,000 | 94,545,000 | 102,579,000 | 94,545,000 | |||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding at the end of the period (in dollars) | 104,695,000 | 104,695,000 | 102,579,000 | 94,545,000 | |||||||||||||||||||||||||||||||||||||||||||||||||
Fully vested and exercisable options at the end of the period (in dollars) | 104,695,000 | 104,695,000 | 59,398,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Additional disclosure | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total intrinsic value of options exercised (in dollars) | 15,100,000 | 15,000,000 | 8,100,000 | 15,700,000 | 100,000 | 23,000,000 | 6,300,000 | 38,100,000 | 3,800,000 | 600,000 | |||||||||||||||||||||||||||||||||||||||||||
Cash received for non-qualified option rights exercised (in dollars) | 900,000 | 1,700,000 | 2,900,000 | 4,800,000 | 3,000,000 | 2,300,000 | 100,000 | ||||||||||||||||||||||||||||||||||||||||||||||
Additional disclosure | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Vesting percentage on December 31, 2012 | 20.00% | 25.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||
Vesting percentage on December 31, 2013 | 20.00% | 25.00% | 25.00% | 75.00% | |||||||||||||||||||||||||||||||||||||||||||||||||
Shares granted net of forfeitures | 73,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Share based Compensation Arrangement by Share based Payment Award, Award Vesting Rights as Percentage of Target Award | 200.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares vested | 146,000 | 36,000 | 64,000 | 4,000 | 34,000 | 39,000 | |||||||||||||||||||||||||||||||||||||||||||||||
Share based Compensation Arrangement by Share based Payment Award, Equity Instruments Other than Options Aggregate Intrinsic Value Vested | 3,500,000 | 1,700,000 | 2,500,000 | 300,000 | 7,600,000 | 7,600,000 | 1,100,000 | 100,000 | 2,700,000 | 1,100,000 | 2,100,000 | 1,500,000 | 500,000 | ||||||||||||||||||||||||||||||||||||||||
Number of shares withheld for the payment of taxes owed by the recipients | 52,000 | 12,000 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Nonvested at the beginning of the period (in shares) | 262,000 | 238,000 | 238,000 | 34,000 | 64,000 | 64,000 | |||||||||||||||||||||||||||||||||||||||||||||||
Granted (in shares) | 166,576 | 24,713 | 543,880 | 29,135 | 29,000 | 140,000 | 7,000 | 9,000 | 6,815 | 9,330 | 17,800 | 95,812 | |||||||||||||||||||||||||||||||||||||||||
Vested (in shares) | -146,000 | -36,000 | -64,000 | -4,000 | -34,000 | -39,000 | |||||||||||||||||||||||||||||||||||||||||||||||
Forfeited (in shares) | -7,000 | -43,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Nonvested at the end of the period (in shares) | 262,000 | 238,000 | 280,000 | 262,000 | 238,000 | 7,000 | 34,000 | 64,000 | |||||||||||||||||||||||||||||||||||||||||||||
Weighted-Average Grant-Date Fair Value | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Nonvested at the beginning of the period (in dollars per share) | $23.80 | $59.11 | $39.07 | $39.07 | $5.41 | $4.55 | $4.55 | ||||||||||||||||||||||||||||||||||||||||||||||
Granted (In dollars per share) | $76.17 | $69.58 | $47.13 | $76.17 | $69.58 | $73.42 | $48.24 | $73.42 | $48.24 | $25.28 | $1.23 | ||||||||||||||||||||||||||||||||||||||||||
Vested (in dollars per share) | $52.44 | $27.95 | $5.41 | $14.17 | |||||||||||||||||||||||||||||||||||||||||||||||||
Forfeited (in dollars per share) | $59.79 | $35.02 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Nonvested at the end of the period (in dollars per share) | $13.15 | $23.80 | $59.11 | $39.07 | $60.94 | $59.11 | $39.07 | $73.42 | $5.41 | $4.55 | |||||||||||||||||||||||||||||||||||||||||||
Additional information | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Estimated compensation cost that were not yet recognized (in dollars) | 11,000,000 | 8,000,000 | 11,000,000 | 100,000 | 100,000 | ||||||||||||||||||||||||||||||||||||||||||||||||
Weighted-average period over which estimated compensation cost is expected to be recognized | 1 year 8 months 13 days | 1 year 4 months 26 days | 1 year 4 months 24 days | 2 years 2 months 12 days | |||||||||||||||||||||||||||||||||||||||||||||||||
Share based Compensation Arrangement by Share based Payment Award, Equity Instruments Other than Options Aggregate Intrinsic Value Vested | 3,500,000 | 1,700,000 | 2,500,000 | 300,000 | 7,600,000 | 7,600,000 | 1,100,000 | 100,000 | 2,700,000 | 1,100,000 | 2,100,000 | 1,500,000 | 500,000 | ||||||||||||||||||||||||||||||||||||||||
Intrinsic value of the nonvested awards (in dollars) | $24,400,000 | $18,400,000 |
VEHICLE_DEPRECIATION_AND_LEASE2
VEHICLE DEPRECIATION AND LEASE CHARGES, NET - DOLLAR THRIFTY (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2012 | Sep. 30, 2011 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | |
Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | ||||||||
item | item | item | item | item | item | item | ||||||||
Vehicle depreciation and lease charges | ||||||||||||||
Depreciation of revenue-earning vehicles and other | $611,800,000 | $539,500,000 | $1,184,800,000 | $1,070,900,000 | $2,165,200,000 | $1,921,800,000 | $1,747,000,000 | $94,323,000 | $80,667,000 | $230,391,000 | $247,112,000 | $317,844,000 | $362,284,000 | $461,178,000 |
Net gains from disposition of revenue-earning vehicles | 11,300,000 | -41,200,000 | 10,000,000 | -80,600,000 | -96,800,000 | -112,200,000 | 42,900,000 | -5,192,000 | -17,368,000 | -42,023,000 | -43,129,000 | -46,887,000 | -63,084,000 | -35,086,000 |
Total | 641,100,000 | 519,800,000 | 1,228,100,000 | 1,034,900,000 | 2,148,158,000 | 1,905,739,000 | 1,868,147,000 | 89,131,000 | 63,299,000 | 188,368,000 | 203,983,000 | 270,957,000 | 299,200,000 | 426,092,000 |
Average gain on Non-Program Vehicles | ||||||||||||||
Number of Non-Program Vehicles sold | 15,463 | 15,441 | 48,530 | 30,787 | 39,398 | 57,100 | 50,099 | |||||||
Average gain on vehicles sold (per vehicle) | 336 | 1,125 | 866 | 1,401 | 1,190 | 1,105 | 700 | |||||||
Components of vehicle depreciation per vehicle per month | ||||||||||||||
Average depreciable fleet (units) | 120,757 | 113,719 | 113,968 | 110,125 | 108,127 | 103,207 | 105,301 | |||||||
Average depreciation rate | 260 | 236 | 225 | 249 | 245 | 293 | 365 | |||||||
Average gain on vehicles sold | -14 | -50 | -41 | -43 | -36 | -51 | -28 | |||||||
Average vehicle depreciation and lease charges, net | $246 | $186 | $184 | $206 | $209 | $242 | $337 |
EARNINGS_PER_SHARE_DOLLAR_THRI2
EARNINGS PER SHARE - DOLLAR THRIFTY (Details) (USD $) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||||||||||||
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Dec. 31, 2010 | Sep. 30, 2010 | Jun. 30, 2010 | Mar. 31, 2010 | Sep. 30, 2012 | Sep. 30, 2011 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 |
Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | ||||||||||||||||
Earnings per share | |||||||||||||||||||||||||||||
Net Income (loss) | $129,900 | ($28,300) | $251,300 | $101,000 | ($48,200) | $58,800 | $212,600 | $62,100 | ($123,000) | $156,400 | $52,700 | $275,779 | $210,489 | ($18,383) | $55,500 | $33,901 | $66,621 | $42,505 | $16,523 | $12,496 | $49,165 | $42,263 | $27,292 | $145,298 | $125,649 | $159,550 | $131,216 | $45,022 | |
Basic EPS: | |||||||||||||||||||||||||||||
Weighted-average common shares | 27,905,118 | 28,958,718 | 28,217,067 | 28,872,747 | 28,965,187 | 28,623,108 | 22,687,077 | ||||||||||||||||||||||
Basic EPS (in dollars per share) | $1.99 | $1.16 | $2.30 | $1.47 | $0.57 | $0.44 | $1.72 | $1.48 | $0.96 | $5.15 | $4.35 | $5.51 | $4.58 | $1.98 | |||||||||||||||
Diluted EPS: | |||||||||||||||||||||||||||||
Weighted average common shares | 27,905,118 | 28,958,718 | 28,217,067 | 28,872,747 | 28,965,187 | 28,623,108 | 22,687,077 | ||||||||||||||||||||||
Shares contingently issuable: | |||||||||||||||||||||||||||||
Stock options | 803,982 | 1,964,321 | 854,272 | 1,984,419 | 1,913,783 | 1,226,089 | 762,673 | ||||||||||||||||||||||
Performance awards and non-vested shares | 127,418 | 113,734 | 111,431 | 90,581 | 94,261 | 125,225 | 255,775 | ||||||||||||||||||||||
Employee compensation shares deferred | 24,577 | 46,604 | 29,805 | 48,440 | 47,232 | 49,374 | 105,402 | ||||||||||||||||||||||
Director compensation shares deferred | 224,535 | 221,452 | 223,952 | 220,554 | 220,778 | 221,485 | 155,611 | ||||||||||||||||||||||
Shares applicable to diluted | 29,085,630 | 31,304,829 | 29,436,527 | 31,216,741 | 31,241,241 | 30,245,281 | 23,966,538 | ||||||||||||||||||||||
Diluted EPS (in dollars per share) | $1.91 | $1.08 | $2.13 | $1.36 | $0.53 | $0.41 | $1.62 | $1.40 | $0.91 | $4.94 | $4.03 | $5.11 | $4.34 | $1.88 | |||||||||||||||
Reduction in diluted shares outstanding due to tax benefit impact | 356,970 | ||||||||||||||||||||||||||||
Increase(decrease) in the number of shares included in the diluted EPS calculation due to assumed option exercises | -500,000 | 800,000 | 700,000 | ||||||||||||||||||||||||||
Common stock repurchased | 23,200,000 | 22,494 | 1,821,137 |
RECEIVABLES_DOLLAR_THRIFTY_Det
RECEIVABLES - DOLLAR THRIFTY (Details) (USD $) | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Sep. 30, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Sep. 30, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Sep. 30, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | |||
Trade accounts receivable and other | Trade accounts receivable and other | Trade accounts receivable and other | Vehicle manufacturer receivables | Vehicle manufacturer receivables | Vehicle manufacturer receivables | Car sales receivable | Car sales receivable | Car sales receivable | |||||||
Statement | |||||||||||||||
Receivables, gross | $130,380 | $98,200 | $74,171 | $85,476 | $74,403 | $68,528 | $41,078 | $21,510 | $4,543 | $3,826 | $2,287 | $1,100 | |||
Less: Allowance for doubtful accounts | -26,200 | -25,113 | -20,282 | -2,163 | -2,840 | -4,715 | |||||||||
Receivables, net | $1,656,000 | $1,886,596 | $1,616,382 | $128,217 | $95,360 | $69,456 | |||||||||
Period within which receivables are generally received | 60 days | 60 days |
DEBT_AND_OTHER_OBLIGATIONS_DOL2
DEBT AND OTHER OBLIGATIONS - DOLLAR THRIFTY (Details) | Jun. 30, 2013 | Apr. 30, 2013 | Dec. 31, 2012 | Aug. 31, 2012 | Dec. 31, 2011 | Apr. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Sep. 30, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 29, 2011 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2012 | Dec. 31, 2011 | Dec. 31, 2011 | Sep. 30, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | Feb. 16, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2012 |
USD ($) | USD ($) | USD ($) | USD ($) | LIBOR | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | ||
USD ($) | USD ($) | USD ($) | Asset-backed medium-term notes | Asset-backed medium-term notes | Asset-backed medium-term notes | Asset-backed medium-term notes Series 2011-2 notes (matures May 2015) | Asset-backed medium-term notes Series 2011-2 notes (matures May 2015) | Asset-backed medium-term notes Series 2011-2 notes (matures May 2015) | Asset-backed medium-term notes Series 2011-2 notes (matures May 2015) | Asset-backed medium-term notes Series 2011-2 notes (matures May 2015) | Asset-backed medium-term notes Series 2011-2 notes (matures May 2015) | Asset-backed medium-term notes Series 2011-1 notes (matures February 2015) | Asset-backed medium-term notes Series 2011-1 notes (matures February 2015) | Asset-backed medium-term notes Series 2011-1 Class A Notes | Asset-backed medium-term notes Series 2011-1 Class A Notes | Asset-backed medium-term notes Series 2011-1 Class B Notes | Asset-backed medium-term notes Series 2011-1 Class B Notes | Asset-backed medium-term notes Series 2007-1 notes (matures July 2012) | Asset-backed medium-term notes Series 2007-1 notes (matures July 2012) | Asset-backed medium-term notes Series 2007-1 notes (matures July 2012) | Asset-backed medium-term notes Series 2007-1 notes (matures July 2012) | Series 2010-3 variable funding note | Series 2010-3 variable funding note | Series 2010-3 variable funding note | Series 2010-3 variable funding note | Series 2010-3 variable funding note | Series 2010-3 variable funding note | Series 2010-3 variable funding note | Series 2010-3 variable funding note | Series 2010-3 variable funding note | Series 2010-3 variable funding note | Series 2010-3 variable funding note | Series 2010-3 variable funding note | Series 2010-3 variable funding note | CAD Series 2012-1 note (Canadian fleet financing) (matures August 2014) | CAD Series 2012-1 note (Canadian fleet financing) (matures August 2014) | CAD Series 2012-1 note (Canadian fleet financing) (matures August 2014) | CAD Series 2012-1 note (Canadian fleet financing) (matures August 2014) | New Revolving Credit Facility | New Revolving Credit Facility | New Revolving Credit Facility | New Revolving Credit Facility | New Revolving Credit Facility | New Revolving Credit Facility | New Revolving Credit Facility | New Revolving Credit Facility | New Revolving Credit Facility | New Revolving Credit Facility | New Revolving Credit Facility | New Revolving Credit Facility | New Revolving Credit Facility | |||||||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Maximum | Maximum | Minimum | Minimum | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Commercial paper rate | Commercial paper rate | LIBOR | LIBOR | Eurodollar | Eurodollar | Maximum | Maximum | Minimum | Minimum | USD ($) | CAD | Commercial paper rate | One-month rate for Canadian dollar | USD ($) | USD ($) | USD ($) | U.S. enhancement | General purpose enhancements | LIBOR | LIBOR | Maximum | Maximum | Maximum | Minimum | Minimum | Minimum | |||||||||||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | LIBOR | USD ($) | USD ($) | LIBOR | |||||||||||||||||||||||||||||||||||||||||||||||||
Debt and other obligations | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt and other obligations, before discounts | $1,419,000,000 | $0 | $900,000,000 | $1,400,000,000 | $1,000,000,000 | $400,000,000 | $400,000,000 | $500,000,000 | $500,000,000 | $500,000,000 | $500,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||
Discounts on asset-backed medium-term notes | -32,000 | -45,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total debt and other obligations | 17,394,200,000 | 15,014,474,000 | 10,907,849,000 | 1,481,137,000 | 1,399,955,000 | 1,397,243,000 | 899,968,000 | 1,399,955,000 | 1,000,000,000 | 500,000,000 | 510,000,000 | 71,169,000 | ||||||||||||||||||||||||||||||||||||||||||||||
Amount of debt issued | 400,000,000 | 400,000,000 | 500,000,000 | 500,000,000 | 420,000,000 | 420,000,000 | 80,000,000 | 80,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate (as a percent) | 100.00% | 3.21% | 3.21% | 2.81% | 2.81% | 2.51% | 2.51% | 4.38% | 4.38% | |||||||||||||||||||||||||||||||||||||||||||||||||
Principal payments | 83,300,000 | 500,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount drawn | 510,000,000 | 71,200,000 | 70,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Aggregate maximum borrowings | 1,950,000,000 | 600,000,000 | 600,000,000 | 150,000,000 | 450,000,000 | 450,000,000 | 450,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Repayment period | 6 months | 6 months | 6 months | 6 months | 3 months | 3 months | 2 years | 2 years | ||||||||||||||||||||||||||||||||||||||||||||||||||
Spread (as a percent) | 275.00% | 1.30% | 1.50% | 1.50% | 3.50% | 3.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Variable rate basis | weighted-average commercial paper rate | weighted-average commercial paper rate | floating one-month LIBOR rate | floating one-month LIBOR | Eurodollar rate | Eurodollar | weighted average commercial paper rates | one-month rate for Canadian dollar denominated bankers' acceptances | LIBOR | LIBOR | ||||||||||||||||||||||||||||||||||||||||||||||||
Facility commitment fee rate (as a percent) | 0.80% | 0.80% | 0.65% | 0.65% | 0.50% | 0.50% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate at the end of the period (as a percent) | 1.57% | 2.69% | 2.69% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leverage ratio | 3 | 2.25 | 2.25 | 3 | 3 | 3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest coverage ratio | 2 | 2 | 2 | 2 | 2 | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
EBITDA requirement | 75,000,000 | 75,000,000 | 75,000,000 | 75,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount of unsecured indebtedness that can be incurred | 400,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount of permitted acquisitions | 250,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Permitted investments in U.S. special-purpose financing entities (including RCFC) | 750,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Permitted investments in Canadian special-purpose financing entities | 150,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted payments permitted, base amount | 300,000,000 | 300,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of cumulative adjusted net income added to the base amount | 50.00% | 50.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of cumulative adjusted net loss subtracted from the base amount | 100.00% | 100.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Letters of credit outstanding | 203,100,000 | 100,000 | 40,800,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Remaining available capacity | $1,125,200,000 | $2,267,200,000 | $409,100,000 |
DERIVATIVE_FINANCIAL_INSTRUMEN2
DERIVATIVE FINANCIAL INSTRUMENTS - DOLLAR THRIFTY (Details) (Dollar Thrifty Automotive Group Inc, USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Sep. 30, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | |
Derivative financial instruments | |||
Swap termination reclassification | $8,488,000 | ||
Interest Rate Swap | |||
Derivative financial instruments | |||
Swap agreements termination fee | 8,800,000 | ||
Swap termination reclassification | 400,000 | 8,500,000 | |
Interest rate caps | 2010-3 VFN | |||
Derivative financial instruments | |||
Notional amount of interest rate derivatives | $600,000,000 | $600,000,000 | $600,000,000 |
DERIVATIVE_FINANCIAL_INSTRUMEN3
DERIVATIVE FINANCIAL INSTRUMENTS - DOLLAR THRIFTY (Details 2) (USD $) | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Sep. 30, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Sep. 30, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | ||
Interest rate contracts | Interest rate contracts | Derivatives designated as hedging instruments | Derivatives designated as hedging instruments | Derivatives designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | |||
Prepaid expenses and other assets | Prepaid expenses and other assets | Interest rate contracts | Interest rate contracts | Interest rate contracts | Interest rate contracts | |||||
Prepaid expenses and other assets | Prepaid expenses and other assets | Prepaid expenses and other assets | Prepaid expenses and other assets | |||||||
Fair value of derivative financial instrument | ||||||||||
Fair value of derivative | $0 | $0 | ||||||||
Asset Derivatives | $5,500 | $4,500 | $548 | $1,355 | $861 | $23 | $548 | $494 |
DERIVATIVE_FINANCIAL_INSTRUMEN4
DERIVATIVE FINANCIAL INSTRUMENTS - DOLLAR THRIFTY (Details 3) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||||
Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Sep. 30, 2011 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2010 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2012 | Sep. 30, 2011 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2011 | Dec. 31, 2010 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2012 | Sep. 30, 2011 | Dec. 31, 2011 | Dec. 31, 2010 | |
Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | ||||||||
Interest expense, net of interest income | Interest expense, net of interest income | Interest rate contracts | Interest rate contracts | Interest rate contracts | Interest rate contracts | Interest rate contracts | Interest rate contracts | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | ||||||||||
Cash flow hedge | Cash flow hedge | Interest expense, net of interest income | Interest expense, net of interest income | Interest expense, net of interest income | Interest expense, net of interest income | Interest expense, net of interest income | Interest expense, net of interest income | Net (increase) decrease in fair value of derivatives | Net (increase) decrease in fair value of derivatives | Interest rate contracts | Interest rate contracts | Interest rate contracts | Interest rate contracts | Interest rate contracts | Interest rate contracts | ||||||||||
Cash flow hedge | Cash flow hedge | Cash flow hedge | Cash flow hedge | Cash flow hedge | Cash flow hedge | Net (increase) decrease in fair value of derivatives | Net (increase) decrease in fair value of derivatives | Net (increase) decrease in fair value of derivatives | Net (increase) decrease in fair value of derivatives | Net (increase) decrease in fair value of derivatives | Net (increase) decrease in fair value of derivatives | ||||||||||||||
Gain (loss) on derivative financial instruments | |||||||||||||||||||||||||
Amount of (Gain) or Loss Recognized In Income on Derivative | ($8,470,000) | $0 | $0 | $3,244,000 | $28,694,000 | $40,000 | $523,000 | $525,000 | ($3,367,000) | $3,244,000 | $28,694,000 | ||||||||||||||
Amount of Gain or (Loss) Recognized in OCI on Derivative (Effective Portion) | 0 | 0 | 0 | -4,139,000 | 0 | -12,573,000 | 12,358,000 | 10,259,000 | 5,543,000 | 3,591,000 | 10,288,000 | 10,259,000 | 5,543,000 | ||||||||||||
Amount of Gain or (Loss) Reclassified from AOCI into Income (Effective Portion) | -14,229,000 | -14,069,000 | -207,000 | -3,572,000 | -4,939,000 | -10,654,000 | -14,229,000 | -14,069,000 | |||||||||||||||||
Amount reclassified from AOCI related to discontinuance of cash flow hedge, additional disclosure | |||||||||||||||||||||||||
Amount reclassified from AOCI related to discontinuance of cash flow hedge | $400,000 | $400,000 |
FAIR_VALUE_MEASUREMENTS_DOLLAR2
FAIR VALUE MEASUREMENTS - DOLLAR THRIFTY (Details) (USD $) | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Sep. 30, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Total Fair Value Assets (Liabilities) | Total Fair Value Assets (Liabilities) | Total Fair Value Assets (Liabilities) | |||||
Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | |||||
Fair value of assets and liabilities | ||||||||||||
Derivative Assets | $5,500 | $4,500 | $23 | $548 | $1,355 | $23 | $548 | $1,355 | ||||
Deferred Compensation Plan Assets | 6,998 | 5,752 | 3,916 | 6,998 | 5,752 | 3,916 | ||||||
Total | 6,998 | 5,752 | 23 | 548 | 7,021 | 6,300 | ||||||
Transfer of assets from Level 1 to Level 2 | 0 | 0 | ||||||||||
Transfer of assets from Level 2 to Level 1 | $0 | $0 |
FAIR_VALUE_MEASUREMENTS_DOLLAR3
FAIR VALUE MEASUREMENTS - DOLLAR THRIFTY (Details 2) (USD $) | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2010 | Sep. 30, 2012 | Dec. 31, 2011 | Dec. 31, 2011 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2012 | Dec. 31, 2010 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2012 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Vehicle debt and obligations-Canadian dollar denominated | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Carrying Value | Carrying Value | Carrying Value | Carrying Value | Carrying Value | Carrying Value | Carrying Value | Carrying Value | Carrying Value | Fair Value | Fair Value | Fair Value | Fair Value | Fair Value | Fair Value | Fair Value | Fair Value | Fair Value | |||
Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Vehicle debt and obligations-floating rates | Vehicle debt and obligations-fixed rates | Vehicle debt and obligations-fixed rates | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Vehicle debt and obligations-floating rates | Vehicle debt and obligations-fixed rates | Vehicle debt and obligations-fixed rates | Vehicle debt and obligations-Canadian dollar denominated | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Vehicle debt and obligations-floating rates | Vehicle debt and obligations-floating rates | Vehicle debt and obligations-floating rates | Vehicle debt and obligations-fixed rates | Vehicle debt and obligations-fixed rates | Vehicle debt and obligations-Canadian dollar denominated | Vehicle debt and obligations-Canadian dollar denominated | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Vehicle debt and obligations-floating rates | Vehicle debt and obligations-floating rates | Vehicle debt and obligations-floating rates | Vehicle debt and obligations-fixed rates | Vehicle debt and obligations-fixed rates | Vehicle debt and obligations-Canadian dollar denominated | Vehicle debt and obligations-Canadian dollar denominated | |||||||
Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | ||||||||||||||||
Fair values of financial instruments | ||||||||||||||||||||||||||||||||||||
Debt and other obligations | $17,394,200 | $15,014,474 | $10,907,849 | $1,481,137 | $1,399,955 | $1,397,243 | $49,118 | $516,296 | $995,112 | $495,820 | $516,296 | $499,292 | $991,692 | $400,000 | $510,000 | $410,523 | $400,000 | $71,169 | $1,481,169 | $1,400,000 | $510,000 | $500,000 | $1,200,000 | $900,000 | $900,000 | $71,169 | $49,118 | $1,507,988 | $1,395,112 | $510,000 | $495,820 | $1,178,875 | $926,819 | $899,292 | $71,169 | $49,118 |
STOCKHOLDERS_EQUITY_DOLLAR_THR2
STOCKHOLDERS' EQUITY - DOLLAR THRIFTY (Details) (USD $) | 1 Months Ended | 0 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | ||||||||||||||||||||
Mar. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2012 | Dec. 31, 2011 | Sep. 26, 2011 | Sep. 30, 2011 | Sep. 30, 2012 | Sep. 30, 2012 | Dec. 31, 2010 | Dec. 31, 2009 | Dec. 31, 2008 | Sep. 30, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | Sep. 30, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | Sep. 30, 2012 | Feb. 07, 2012 | Nov. 03, 2011 | Nov. 30, 2011 | Dec. 31, 2011 | |
Interest Rate SWAP | Interest Rate SWAP | Interest Rate SWAP | Interest Rate SWAP | Foreign Currency Translation | Foreign Currency Translation | Foreign Currency Translation | Foreign Currency Translation | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | ||||||
Interest Rate SWAP | Interest Rate SWAP | Interest Rate SWAP | Interest Rate SWAP | Foreign Currency Translation | Foreign Currency Translation | Foreign Currency Translation | Foreign Currency Translation | Revolving Credit Facility | Forward stock repurchase plan | Forward stock repurchase plan | Forward stock repurchase plan | Forward stock repurchase plan | |||||||||||||||||||||
Share Repurchase Program | |||||||||||||||||||||||||||||||||
Amount authorized under share repurchase program | $400,000,000 | $400,000,000 | $100,000,000 | $100,000,000 | |||||||||||||||||||||||||||||
Shares of common stock repurchased | 23,200,000 | 22,494 | 1,821,137 | 1,451,193 | 0 | ||||||||||||||||||||||||||||
Value of common stock repurchased | 1,800,000 | 129,100,000 | |||||||||||||||||||||||||||||||
Average price per share of common stock acquired (in dollars per share) | $79.74 | $70.91 | $68.91 | ||||||||||||||||||||||||||||||
Remaining amount available for further purchases of common stock | 271,000,000 | ||||||||||||||||||||||||||||||||
Amount of share repurchases permitted under the terms of debt instrument | 344,000,000 | ||||||||||||||||||||||||||||||||
Components of accumulated other comprehensive income (loss) | |||||||||||||||||||||||||||||||||
Balance at the beginning of the period | -73,300,000 | -26,892,000 | -38,000,000 | -28,414,000 | -19,400,000 | -19,400,000 | -19,400,000 | -19,400,000 | 48,700,000 | 102,700,000 | 74,800,000 | 91,300,000 | -7,617,000 | -12,329,000 | -18,374,000 | -29,388,000 | -8,488,000 | -18,747,000 | -24,290,000 | -32,952,000 | 871,000 | 6,418,000 | 5,916,000 | 3,564,000 | |||||||||
Adjustment during the period | 8,488,000 | 10,259,000 | 5,543,000 | 8,662,000 | 5,491,000 | -5,547,000 | 502,000 | 2,352,000 | |||||||||||||||||||||||||
Balance at the end of the period | ($73,300,000) | ($26,892,000) | ($38,000,000) | ($28,414,000) | ($19,400,000) | ($19,400,000) | ($19,400,000) | ($19,400,000) | $48,700,000 | $102,700,000 | $74,800,000 | $91,300,000 | $6,362,000 | $6,362,000 | ($12,329,000) | ($18,374,000) | ($29,388,000) | ($8,488,000) | ($18,747,000) | ($24,290,000) | $6,362,000 | $871,000 | $6,418,000 | $5,916,000 |
INCOME_TAXES_DOLLAR_THRIFTY_De
INCOME TAXES - DOLLAR THRIFTY (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | ||||||||||
Jun. 30, 2013 | Jun. 30, 2012 | Mar. 31, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Sep. 30, 2012 | Sep. 30, 2011 | Mar. 31, 2011 | Sep. 30, 2012 | Sep. 30, 2011 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | Sep. 30, 2012 | |
Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | |||||||||
DTG Canada | |||||||||||||||||
Income taxes | |||||||||||||||||
Tax refund received | $50,000,000 | $8,800,000 | |||||||||||||||
Estimated federal tax payments | 43,000,000 | 37,700,000 | 71,661,000 | 49,557,000 | 50,688,000 | 29,000,000 | |||||||||||
Effective tax rate (as a percent) | 42.40% | 41.20% | 64.30% | 49.80% | 45.20% | 38.50% | 103.10% | 37.60% | 37.10% | 38.10% | 39.10% | 38.90% | 40.70% | 44.40% | |||
Income tax expense for the utilization of prior NOL carryforward | 95,800,000 | 70,700,000 | 155,300,000 | 94,900,000 | 227,073,000 | 143,846,000 | 33,322,000 | 33,469,000 | 39,265,000 | 89,516,000 | 80,594,000 | 101,692,000 | 90,202,000 | 35,986,000 | 0 | ||
Amount of benefit previously recognized due to valuation allowance related to prior period NOL carryforwards | $0 |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES - DOLLAR THRIFTY (Details) (Dollar Thrifty Automotive Group Inc, USD $) | 9 Months Ended | 12 Months Ended | 1 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2012 | Sep. 30, 2011 | Dec. 31, 2011 | Dec. 31, 2010 | Jun. 30, 2012 |
Vehicle supply agreement | |||||
Commitments and contingencies | |||||
Favorable insurance reserve adjustments | $2.50 | $10.60 | $32.20 | $13.40 | |
Agreement term | 3 years |
PROPOSED_ACQUISITION_AND_RELAT1
PROPOSED ACQUISITION AND RELATED MATTERS - DOLLAR THRIFTY (Details) (USD $) | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2012 | Dec. 31, 2011 | 24-May-11 | Dec. 31, 2010 | Oct. 31, 2009 | Aug. 26, 2012 | Aug. 26, 2012 | Aug. 26, 2012 |
Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | ||||
Merger Sub | Merger Sub | Merger Sub | |||||||||
Company | Minimum | ||||||||||
PROPOSED ACQUISITION AND RELATED MATTERS | |||||||||||
Common Stock, par value (in dollars per share) | $0.01 | $0.01 | $0.01 | $0.01 | $0.01 | $0.01 | $0.01 | $0.01 | |||
Offer price (in dollars per share) | $87.50 | ||||||||||
Number of additional shares over threshold percentage | 1 | ||||||||||
Threshold percentage of ownership | 90.00% |
Recovered_Sheet5
GUARANTOR AND NON-GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - DOLLAR THRIFTY (Details) (USD $) | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||||||||||
In Thousands, unless otherwise specified | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | Dec. 31, 2008 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Dec. 31, 2010 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Dec. 31, 2010 | Sep. 30, 2012 | Dec. 31, 2011 |
Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | ||||||||
Guarantor Subsidiaries | Guarantor Subsidiaries | Guarantor Subsidiaries | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Eliminations | ||||||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||||||||||||||
Parent's ownership percentage in Guarantor Subsidiaries | 100.00% | 100.00% | 100.00% | ||||||||||||||||||||
ASSETS | |||||||||||||||||||||||
Cash and cash equivalents | $483,000 | $533,235 | $586,000 | $586,000 | $931,208 | $2,374,006 | $985,467 | $456,869 | $508,648 | $499,473 | $463,153 | $400,404 | $229,636 | $402,243 | $446,239 | $465,610 | $450,007 | $54,626 | $62,409 | $33,863 | $13,146 | ||
Restricted cash and investments | 250,144 | 353,265 | 277,407 | 6,185 | 1,355 | 243,959 | 351,910 | ||||||||||||||||
Receivables, net | 1,656,000 | 1,886,596 | 1,616,382 | 128,217 | 95,360 | 69,456 | 86,835 | 86,184 | 69,618 | 34,294 | -28,236 | -25,118 | |||||||||||
Intercompany | 800 | 12,809 | 0 | -92,323 | -100,436 | 147,270 | 154,999 | -54,947 | -54,563 | ||||||||||||||
Prepaid expenses and other assets | 763,200 | 461,502 | 416,134 | 71,980 | 65,959 | 67,482 | 59,770 | 49,163 | 13,409 | 20,503 | -1,199 | -3,707 | |||||||||||
Revenue-earning vehicles, net | 15,706,000 | 12,908,336 | 10,105,409 | 1,875,607 | 1,467,835 | 1,341,822 | 24,629 | 33,057 | 1,850,978 | 1,434,778 | |||||||||||||
Property and equipment, net | 1,465,600 | 1,436,386 | 1,251,854 | 77,887 | 84,278 | 90,228 | 96,198 | 76,208 | 82,588 | 1,679 | 1,690 | ||||||||||||
Investment in subsidiaries | 0 | 0 | 0 | 825,502 | 581,003 | -825,502 | -581,003 | ||||||||||||||||
Income taxes receivable | 4,453 | 18,786 | 65,803 | 4,364 | 18,702 | 89 | 84 | ||||||||||||||||
Software, net | 620,300 | 686,500 | 354,000 | 19,438 | 21,535 | 24,177 | 19,438 | 21,535 | |||||||||||||||
Total assets | 25,930,900 | 23,290,209 | 17,667,332 | 2,884,595 | 2,615,666 | 2,499,528 | 1,412,851 | 1,219,390 | 2,381,628 | 2,060,667 | -909,884 | -664,391 | |||||||||||
LIABILITIES: | |||||||||||||||||||||||
Accounts payable | 1,484,500 | 999,061 | 897,489 | 47,768 | 54,377 | 45,483 | 44,288 | 45,827 | 3,484 | 8,573 | -3 | -23 | |||||||||||
Accrued liabilities | 1,182,300 | 1,178,460 | 1,126,338 | 136,567 | 124,185 | 167,545 | 161,841 | 148,820 | 4,157 | 4,167 | -29,432 | -28,802 | |||||||||||
Deferred income taxes | 2,681,140 | 1,661,872 | 392,524 | 342,962 | 242,930 | 391,431 | 341,408 | 1,093 | 1,554 | ||||||||||||||
Vehicle insurance reserves | 82,358 | 86,515 | 107,720 | 71,050 | 75,663 | 11,308 | 10,852 | ||||||||||||||||
Debt and other obligations | 17,394,200 | 15,014,474 | 10,907,849 | 1,481,137 | 1,399,955 | 1,397,243 | 1,536,084 | 1,454,518 | -54,947 | -54,563 | |||||||||||||
Total liabilities | 23,358,900 | 20,372,681 | 15,038,478 | 2,140,354 | 2,007,994 | 1,960,921 | 668,610 | 611,718 | 1,556,126 | 1,479,664 | -84,382 | -83,388 | |||||||||||
COMMITMENTS AND CONTINGENCIES | |||||||||||||||||||||||
EQUITY: | 2,572,000 | 2,917,509 | 2,628,835 | 744,241 | 607,672 | 538,607 | 393,914 | 208,420 | 744,241 | 607,672 | 825,502 | 581,003 | -825,502 | -581,003 | |||||||||
Total liabilities and equity | $25,930,900 | $23,290,209 | $17,667,332 | $2,884,595 | $2,615,666 | $2,499,528 | $1,412,851 | $1,219,390 | $2,381,628 | $2,060,667 | ($909,884) | ($664,391) |
Recovered_Sheet6
GUARANTOR AND NON-GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - DOLLAR THRIFTY (Details 2) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||||||||||||
In Thousands, unless otherwise specified | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Dec. 31, 2010 | Sep. 30, 2010 | Jun. 30, 2010 | Mar. 31, 2010 | Sep. 30, 2012 | Sep. 30, 2011 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | Sep. 30, 2012 | Sep. 30, 2011 | Dec. 31, 2011 | Sep. 30, 2012 | Sep. 30, 2011 | Dec. 31, 2011 | Sep. 30, 2012 | Sep. 30, 2011 | Dec. 31, 2011 |
Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | |||||||||||||||
Guarantor Subsidiaries | Guarantor Subsidiaries | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Eliminations | Eliminations | |||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) | |||||||||||||||||||||||||||||||||||||
Total revenues | $2,714,600 | $2,318,600 | $2,516,200 | $2,225,100 | $1,960,900 | $2,013,800 | $2,432,300 | $2,072,300 | $1,780,000 | $5,151,200 | $4,186,100 | $9,020,807 | $8,298,380 | $7,562,534 | $460,590 | $353,730 | $451,722 | $395,129 | $348,347 | $349,059 | $443,544 | $396,227 | $348,330 | $1,212,250 | $1,195,198 | $1,548,928 | $1,537,160 | $1,546,249 | $1,151,812 | $1,140,588 | $1,480,660 | $346,437 | $332,591 | $436,441 | ($285,999) | ($277,981) | ($368,173) |
COSTS AND EXPENSES: | |||||||||||||||||||||||||||||||||||||
Direct vehicle and operating | 1,405,900 | 1,188,900 | 2,757,100 | 2,303,100 | 4,795,788 | 4,566,378 | 4,283,394 | 215,790 | 214,536 | 596,463 | 583,799 | 751,468 | 745,535 | 768,456 | 558,350 | 549,971 | 708,477 | 40,861 | 40,151 | 51,008 | -2,748 | -6,323 | -8,017 | ||||||||||||||
Vehicle depreciation and lease charges, net | 641,100 | 519,800 | 1,228,100 | 1,034,900 | 2,148,158 | 1,905,739 | 1,868,147 | 89,131 | 63,299 | 188,368 | 203,983 | 270,957 | 299,200 | 426,092 | 302,648 | 288,433 | 378,898 | 168,446 | 186,677 | 251,526 | -282,726 | -271,127 | -359,467 | ||||||||||||||
Selling, general and administrative | 274,800 | 206,600 | 526,300 | 414,300 | 945,581 | 745,117 | 664,442 | 54,454 | 47,851 | 147,479 | 145,641 | 191,043 | 209,341 | 200,389 | 143,258 | 140,345 | 184,769 | 4,719 | 5,810 | 6,937 | -498 | -514 | -663 | ||||||||||||||
Interest Income (Expense), Net | 592,886 | 644,703 | 714,224 | 12,206 | 19,627 | 44,601 | 58,899 | 77,462 | 89,303 | 96,560 | 11,156 | 29,552 | 36,003 | 33,472 | 29,364 | 41,485 | -27 | -17 | 26 | ||||||||||||||||||
Total expenses | 2,488,900 | 2,053,500 | 4,839,500 | 4,038,500 | 8,517,955 | 7,924,485 | 7,530,212 | 371,581 | 345,313 | 976,911 | 992,322 | 1,290,930 | 1,344,436 | 1,494,089 | 1,015,412 | 1,008,301 | 1,308,147 | 247,498 | 262,002 | 350,956 | -285,999 | -277,981 | -368,173 | ||||||||||||||
(Increase) decrease in fair value of derivatives | -3,600 | -900 | 4,326 | -7,990 | 10,810 | 40 | 523 | 525 | -3,367 | -3,244 | -28,694 | -28,848 | -5,634 | -5,634 | 525 | 2,267 | 2,390 | ||||||||||||||||||||
Income before income taxes | 225,700 | -26,900 | 382,100 | 171,700 | -24,000 | 105,400 | 308,200 | 107,000 | -146,700 | 311,700 | 147,600 | 502,852 | 373,895 | 32,322 | 88,969 | 105,886 | 234,814 | 206,243 | 261,242 | 221,418 | 81,008 | 136,400 | 137,921 | 178,147 | 98,414 | 68,322 | 83,095 | ||||||||||
INCOME TAX EXPENSE | 95,800 | 70,700 | 155,300 | 94,900 | 227,073 | 143,846 | 33,322 | 33,469 | 39,265 | 89,516 | 80,594 | 101,692 | 90,202 | 35,986 | 89,212 | 80,270 | 100,772 | 304 | 324 | 920 | |||||||||||||||||
NET INCOME / (LOSS) BEFORE EQUITY IN EARNINGS OF SUBS | 145,298 | 125,649 | 159,550 | 47,188 | 57,651 | 77,375 | 98,110 | 67,998 | 82,175 | ||||||||||||||||||||||||||||
EQUITY IN EARNINGS OF SUBSIDIARIES | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 98,110 | 67,998 | 82,175 | -98,110 | -67,998 | -82,175 | ||||||||||||||||||||||||
Net income attributable to The Hertz Corporation and Subsidiaries' common stockholder | 129,900 | -28,300 | 251,300 | 101,000 | -48,200 | 58,800 | 212,600 | 62,100 | -123,000 | 156,400 | 52,700 | 275,779 | 210,489 | -18,383 | 55,500 | 33,901 | 66,621 | 42,505 | 16,523 | 12,496 | 49,165 | 42,263 | 27,292 | 145,298 | 125,649 | 159,550 | 131,216 | 45,022 | 145,298 | 125,649 | 159,550 | 98,110 | 67,998 | 82,175 | -98,110 | -67,998 | -82,175 |
COMPREHENSIVE INCOME / (LOSS) | $107,700 | $58,900 | $110,000 | $43,100 | $277,301 | $144,252 | $22,771 | $60,667 | $60,470 | $159,277 | $127,358 | $164,262 | $137,261 | $56,036 | $159,277 | $127,358 | $103,277 | $60,093 | ($103,277) | ($60,093) |
Recovered_Sheet7
GUARANTOR AND NON-GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - DOLLAR THRIFTY (Details 3) (USD $) | 6 Months Ended | 12 Months Ended | 1 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||
Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Mar. 31, 2012 | Nov. 30, 2009 | Sep. 30, 2012 | Sep. 30, 2011 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | Sep. 30, 2012 | Sep. 30, 2011 | Dec. 31, 2011 | Sep. 30, 2012 | Sep. 30, 2011 | Dec. 31, 2011 | Sep. 30, 2012 | Sep. 30, 2011 | Dec. 31, 2011 | |
Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | Dollar Thrifty Automotive Group Inc | |||||||
Guarantor Subsidiaries | Guarantor Subsidiaries | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Eliminations | Eliminations | |||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | |||||||||||||||||||||
Net cash provided by operating activities | $1,466,000,000 | $1,183,000,000 | $2,748,412,000 | $2,258,521,000 | $2,237,927,000 | $434,770,000 | $458,610,000 | $567,294,000 | $461,941,000 | $535,924,000 | $206,985,000 | $268,555,000 | $306,521,000 | $319,585,000 | $262,206,000 | $347,234,000 | ($91,800,000) | ($72,151,000) | ($86,461,000) | ||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||||||||
Payments to Acquire Revenue Earning Equipment | -6,825,500,000 | -5,711,000,000 | -9,613,239,000 | -9,454,311,000 | -8,440,872,000 | -1,380,617,000 | -983,879,000 | -1,168,532,000 | -1,239,088,000 | -1,060,251,000 | -38,350,000 | -46,155,000 | -58,522,000 | -1,342,267,000 | -937,724,000 | -1,110,010,000 | |||||
Revenue-earning vehicles-Proceeds from sales | 3,742,800,000 | 3,608,300,000 | 7,125,096,000 | 7,850,442,000 | 7,518,446,000 | 757,091,000 | 492,008,000 | 757,766,000 | 856,775,000 | 1,477,368,000 | 26,623,000 | 31,135,000 | 42,746,000 | 730,468,000 | 460,873,000 | 715,020,000 | |||||
Net change in cash & cash equivalents required minimum balance | 100,000,000 | 100,000,000 | -100,000,000 | 100,000,000 | 100,000,000 | ||||||||||||||||
Net change in restricted cash and investments | 103,645,000 | 76,306,000 | -75,461,000 | 345,786,000 | -22,750,000 | -4,817,000 | 270,000 | 16,000 | 108,462,000 | 76,036,000 | -75,477,000 | ||||||||||
Property, equipment and software-Purchases | -13,901,000 | -11,196,000 | -16,633,000 | -23,031,000 | -15,508,000 | -13,817,000 | -11,108,000 | -16,543,000 | -84,000 | -88,000 | -90,000 | ||||||||||
Property, equipment and software-Proceeds from sales | 3,491,000 | 353,000 | 359,000 | 464,000 | 104,000 | 3,491,000 | 324,000 | 330,000 | 29,000 | 29,000 | |||||||||||
Dividends received | 79,000,000 | 191,675,000 | 266,675,000 | -79,000,000 | -191,675,000 | -266,675,000 | |||||||||||||||
Investment in subsidiary | -231,600,000 | -249,389,000 | -247,713,000 | 231,600,000 | 249,389,000 | 247,713,000 | |||||||||||||||
Intercompany | -35,029,000 | -119,298,000 | -139,869,000 | -56,793,000 | 5,583,000 | 8,993,000 | 91,822,000 | 113,715,000 | 130,876,000 | ||||||||||||
Net cash used in investing activities | -3,264,100,000 | -2,215,800,000 | -4,747,290,000 | -2,192,902,000 | -943,568,000 | -530,291,000 | -326,408,000 | -402,501,000 | -59,094,000 | 278,955,000 | -214,499,000 | -102,546,000 | -52,880,000 | -560,214,000 | -395,291,000 | -461,535,000 | 244,422,000 | 171,429,000 | 111,914,000 | ||
Debt and other obligations: | |||||||||||||||||||||
Proceeds from vehicle debt and other obligations | 581,169,000 | 1,137,903,000 | 1,537,903,000 | 526,876,000 | 44,781,000 | 581,169,000 | 1,192,226,000 | 1,592,466,000 | -54,323,000 | -54,563,000 | |||||||||||
Payments of vehicle debt and other obligations | -500,000,000 | -1,072,073,000 | -1,387,073,000 | -847,448,000 | -785,225,000 | -500,000,000 | -1,081,350,000 | -1,396,350,000 | 9,277,000 | 9,277,000 | |||||||||||
Payments-non-vehicle debt | -148,125,000 | -148,125,000 | -10,000,000 | -20,000,000 | -148,125,000 | -148,125,000 | |||||||||||||||
Issuance of common shares | 120,600,000 | 1,694,000 | 2,921,000 | 4,774,000 | 2,988,000 | 129,583,000 | 1,694,000 | 2,921,000 | 4,774,000 | ||||||||||||
Net settlement of employee withholding taxes on share-based awards | -1,215,000 | -3,205,000 | -3,205,000 | -722,000 | -1,215,000 | -3,205,000 | -3,205,000 | ||||||||||||||
Purchases of common stock for the treasury | -29,136,000 | -29,136,000 | |||||||||||||||||||
Payments of Financing Costs | -20,600,000 | -6,900,000 | -49,433,000 | -91,482,000 | -78,151,000 | -8,770,000 | -13,303,000 | -14,757,000 | -11,792,000 | -6,615,000 | -7,825,000 | -1,997,000 | -2,038,000 | -945,000 | -11,306,000 | -12,719,000 | |||||
Dividends paid | -79,000,000 | -191,675,000 | -266,675,000 | 79,000,000 | 191,675,000 | 266,675,000 | |||||||||||||||
Capital contribution from Parent | 0 | 0 | 0 | 0 | 0 | 231,622,000 | 245,907,000 | 246,842,000 | -231,622,000 | -245,907,000 | -246,842,000 | ||||||||||
Net cash provided by (used in) financing activities | 1,756,100,000 | 692,400,000 | 1,595,166,000 | -1,512,255,000 | 104,517,000 | 43,742,000 | -95,882,000 | -119,298,000 | -340,098,000 | -644,111,000 | -36,482,000 | -150,406,000 | -257,409,000 | 232,846,000 | 153,802,000 | 163,564,000 | -152,622,000 | -99,278,000 | -25,453,000 | ||
CHANGE IN CASH AND CASH EQUIVALENTS | -50,200,000 | -345,200,000 | -397,973,000 | -1,442,798,000 | 1,388,539,000 | -51,779,000 | 36,320,000 | 45,495,000 | 62,749,000 | 170,768,000 | -43,996,000 | 15,603,000 | -3,768,000 | -7,783,000 | 20,717,000 | 49,263,000 | |||||
CASH AND CASH EQUIVALENTS: | |||||||||||||||||||||
Cash and cash equivalents at beginning of period | 533,235,000 | 931,208,000 | 931,208,000 | 2,374,006,000 | 985,467,000 | 586,000,000 | 508,648,000 | 463,153,000 | 463,153,000 | 400,404,000 | 229,636,000 | 446,239,000 | 450,007,000 | 450,007,000 | 62,409,000 | 13,146,000 | 13,146,000 | ||||
Cash and cash equivalents at end of period | $483,000,000 | $586,000,000 | $533,235,000 | $931,208,000 | $2,374,006,000 | $586,000,000 | $456,869,000 | $499,473,000 | $508,648,000 | $463,153,000 | $400,404,000 | $402,243,000 | $465,610,000 | $446,239,000 | $54,626,000 | $33,863,000 | $62,409,000 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME - DOLLAR THRIFTY (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Dec. 31, 2010 | Sep. 30, 2010 | Jun. 30, 2010 | Mar. 31, 2010 | Sep. 30, 2012 | Sep. 30, 2011 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 |
Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | |||||||||||||||
Revenues: | ||||||||||||||||||||||||||||
Vehicle rentals | $2,329,500 | $1,889,600 | $4,414,300 | $3,547,900 | $7,456,111 | $6,929,584 | $6,355,205 | $442,336 | $435,578 | $1,160,322 | $1,146,041 | $1,484,324 | $1,473,023 | $1,472,918 | ||||||||||||||
Other | 800 | 500 | 1,500 | 1,100 | 181,500 | 159,985 | 137,509 | 18,254 | 16,144 | 51,928 | 49,157 | 64,604 | 64,137 | 73,331 | ||||||||||||||
Total revenues | 2,714,600 | 2,318,600 | 2,516,200 | 2,225,100 | 1,960,900 | 2,013,800 | 2,432,300 | 2,072,300 | 1,780,000 | 5,151,200 | 4,186,100 | 9,020,807 | 8,298,380 | 7,562,534 | 460,590 | 353,730 | 451,722 | 395,129 | 348,347 | 349,059 | 443,544 | 396,227 | 348,330 | 1,212,250 | 1,195,198 | 1,548,928 | 1,537,160 | 1,546,249 |
COSTS AND EXPENSES: | ||||||||||||||||||||||||||||
Direct vehicle and operating | 1,405,900 | 1,188,900 | 2,757,100 | 2,303,100 | 4,795,788 | 4,566,378 | 4,283,394 | 215,790 | 214,536 | 596,463 | 583,799 | 751,468 | 745,535 | 768,456 | ||||||||||||||
Vehicle depreciation and lease charges, net | 641,100 | 519,800 | 1,228,100 | 1,034,900 | 2,148,158 | 1,905,739 | 1,868,147 | 89,131 | 63,299 | 188,368 | 203,983 | 270,957 | 299,200 | 426,092 | ||||||||||||||
Selling, general and administrative | 274,800 | 206,600 | 526,300 | 414,300 | 945,581 | 745,117 | 664,442 | 54,454 | 47,851 | 147,479 | 145,641 | 191,043 | 209,341 | 200,389 | ||||||||||||||
Interest expense, net of interest income | 592,886 | 644,703 | 714,224 | 12,206 | 19,627 | 44,601 | 58,899 | 77,462 | 89,303 | 96,560 | ||||||||||||||||||
Long-lived asset impairment | 1,057 | 2,592 | ||||||||||||||||||||||||||
Total expenses | 2,488,900 | 2,053,500 | 4,839,500 | 4,038,500 | 8,517,955 | 7,924,485 | 7,530,212 | 371,581 | 345,313 | 976,911 | 992,322 | 1,290,930 | 1,344,436 | 1,494,089 | ||||||||||||||
(Increase) decrease in fair value of derivatives | -3,600 | -900 | 4,326 | -7,990 | 10,810 | 40 | 523 | 525 | -3,367 | -3,244 | -28,694 | -28,848 | ||||||||||||||||
Income before income taxes | 225,700 | -26,900 | 382,100 | 171,700 | -24,000 | 105,400 | 308,200 | 107,000 | -146,700 | 311,700 | 147,600 | 502,852 | 373,895 | 32,322 | 88,969 | 105,886 | 234,814 | 206,243 | 261,242 | 221,418 | 81,008 | |||||||
INCOME TAX EXPENSE | 95,800 | 70,700 | 155,300 | 94,900 | 227,073 | 143,846 | 33,322 | 33,469 | 39,265 | 89,516 | 80,594 | 101,692 | 90,202 | 35,986 | ||||||||||||||
Net income attributable to The Hertz Corporation and Subsidiaries' common stockholder | $129,900 | ($28,300) | $251,300 | $101,000 | ($48,200) | $58,800 | $212,600 | $62,100 | ($123,000) | $156,400 | $52,700 | $275,779 | $210,489 | ($18,383) | $55,500 | $33,901 | $66,621 | $42,505 | $16,523 | $12,496 | $49,165 | $42,263 | $27,292 | $145,298 | $125,649 | $159,550 | $131,216 | $45,022 |
BASIC EARNINGS PER SHARE (in dollars per share) | $1.99 | $1.16 | $2.30 | $1.47 | $0.57 | $0.44 | $1.72 | $1.48 | $0.96 | $5.15 | $4.35 | $5.51 | $4.58 | $1.98 | ||||||||||||||
DILUTED EARNINGS PER SHARE (in dollars per share) | $1.91 | $1.08 | $2.13 | $1.36 | $0.53 | $0.41 | $1.62 | $1.40 | $0.91 | $4.94 | $4.03 | $5.11 | $4.34 | $1.88 |
CONSOLIDATED_STATEMENTS_OF_INC1
CONSOLIDATED STATEMENTS OF INCOME - DOLLAR THRIFTY (Parenthetical) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
In Thousands, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2012 | Sep. 30, 2011 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 |
Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | ||||||||
Interest income | $2,000 | $500 | $3,800 | $1,600 | $4,902 | $5,551 | $12,315 | $370 | $306 | $1,334 | $1,053 | $1,467 | $1,584 | $6,218 |
CONSOLIDATED_BALANCE_SHEETS_DO
CONSOLIDATED BALANCE SHEETS - DOLLAR THRIFTY (Dollar Thrifty Automotive Group Inc., USD $) | Dec. 31, 2010 | Dec. 31, 2009 |
In Thousands, unless otherwise specified | ||
ASSETS | ||
Cash and cash equivalents | $463,153 | $400,404 |
Cash and cash equivalents-required minimum balance | 100,000 | 100,000 |
Restricted cash and investments | 277,407 | |
Receivables, net | 69,456 | |
Prepaid expenses and other assets | 67,482 | |
Revenue-earning vehicles, net | 1,341,822 | |
Property and equipment, net | 90,228 | 96,198 |
Income taxes receivable | 65,803 | |
Software, net | 24,177 | |
Total assets | 2,499,528 | |
LIABILITIES: | ||
Accounts payable | 45,483 | |
Accrued liabilities | 167,545 | |
Deferred income tax liability | 242,930 | |
Vehicle insurance reserves | 107,720 | |
Debt and other obligations | 1,397,243 | |
Total liabilities | 1,960,921 | |
COMMITMENTS AND CONTINGENCIES | ||
STOCKHOLDERS' EQUITY: | ||
Preferred stock, $.01 par value: Authorized 10,000,000 shares; none outstanding | ||
Common stock, $.01 par value: Authorized 50,000,000 shares; 36,048,606 and 35,197,167 issued, respectively, and 29,556,887 and 28,763,452 outstanding, respectively | 352 | |
Additional capital | 940,844 | |
Accumulated deficit | -161,969 | |
Accumulated other comprehensive loss | -12,329 | -18,374 |
Treasury stock, at cost (6,491,719 and 6,433,715 shares, respectively) | -228,291 | |
Total The Hertz Corporation and Subsidiaries stockholder's equity | 538,607 | 393,914 |
Total liabilities and equity | $2,499,528 |
CONSOLIDATED_BALANCE_SHEETS_DO1
CONSOLIDATED BALANCE SHEETS - DOLLAR THRIFTY (Parenthetical) (USD $) | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2012 | Dec. 31, 2011 | 24-May-11 | Dec. 31, 2010 | Oct. 31, 2009 |
Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | ||||
Preferred stock, par value (in dollars per share) | $0.01 | $0.01 | $0.01 | |||||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | 10,000,000 | |||||
Preferred stock, shares outstanding | 0 | 0 | 0 | |||||
Common stock, par value (in dollars per share) | $0.01 | $0.01 | $0.01 | $0.01 | $0.01 | $0.01 | $0.01 | $0.01 |
Common stock, shares authorized | 3,000 | 3,000 | 3,000 | 200,000,000 | 50,000,000 | 50,000,000 | ||
Common stock, shares issued | 100 | 100 | 100 | 36,386,148 | 36,048,606 | 35,197,167 | ||
Common stock, shares outstanding | 100 | 100 | 100 | 28,058,117 | 29,556,887 | 28,763,452 | ||
Treasury stock, shares | 8,328,031 | 6,491,719 | 6,433,715 |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY AND COMPREHENSIVE INCOME - DOLLAR THRIFTY (USD $) | Total | Additional Capital | Accumulated Deficit | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. |
In Thousands, except Share data, unless otherwise specified | Common Stock $.01 Par Value | Additional Capital | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Comprehensive Income | ||||
Balance at Dec. 31, 2008 | $208,420 | $280 | $803,304 | ($338,207) | ($29,388) | ($227,569) | ||||
Balance (in shares) at Dec. 31, 2008 | 28,039,658 | -6,414,906 | ||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Issuance of common shares for director compensation | 532 | 1 | 531 | |||||||
Issuance of common shares for director compensation (in shares) | 49,995 | |||||||||
Tax benefit of stock option transactions | 1,281 | 1,281 | ||||||||
Stock option transactions | 2,290 | 1 | 2,289 | |||||||
Stock option transactions (in shares) | 136,500 | |||||||||
Share-based payment plans | 4,698 | 4,698 | ||||||||
Issuance of common stock in settlement of vested performance shares | 1 | 1 | ||||||||
Issuance of common stock in settlement of vested performance shares (in shares) | 64,190 | |||||||||
Issuance of common stock in settlement of vested restricted stock (in shares) | 48,508 | |||||||||
Public stock offering, net of fees | 120,656 | 66 | 120,590 | |||||||
Public stock offering, net of fees (in shares) | 6,612,500 | |||||||||
Comprehensive income: | ||||||||||
Net Income (loss) | 45,022 | 45,022 | 45,022 | |||||||
Interest rate swap | 8,662 | 8,662 | 8,662 | |||||||
Foreign currency translation | 2,352 | 2,352 | 2,352 | |||||||
Comprehensive income attributable to The Hertz Corporation and Subsidiaries' common stockholder | 56,036 | 56,036 | ||||||||
Balance at Dec. 31, 2009 | 393,914 | 349 | 932,693 | -293,185 | -18,374 | |||||
Balance (in shares) at Dec. 31, 2009 | 34,951,351 | |||||||||
Comprehensive income: | ||||||||||
Net Income (loss) | 27,292 | |||||||||
Balance at Mar. 31, 2010 | ||||||||||
Balance at Dec. 31, 2009 | 393,914 | 349 | 932,693 | -293,185 | -18,374 | -227,569 | ||||
Balance (in shares) at Dec. 31, 2009 | 34,951,351 | -6,414,906 | ||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Issuance of common shares for director compensation | 1,425 | |||||||||
Tax benefit of stock option transactions | -258 | 381 | 381 | |||||||
Stock option transactions | 2,987 | 2 | 2,985 | |||||||
Stock option transactions (in shares) | 172,733 | |||||||||
Share-based payment plans | 36,560 | 4,785 | 4,785 | |||||||
Issuance of common stock in settlement of vested performance shares | -382 | -382 | ||||||||
Issuance of common stock in settlement of vested performance shares (in shares) | 35,910 | -11,818 | ||||||||
Issuance of common stock in settlement of vested restricted stock | -339 | 1 | -340 | |||||||
Issuance of common stock in settlement of vested restricted stock (in shares) | 37,173 | -6,991 | ||||||||
Comprehensive income: | ||||||||||
Net Income (loss) | -18,383 | 131,216 | 131,216 | 131,216 | ||||||
Interest rate swap | 5,543 | 5,543 | 5,543 | |||||||
Foreign currency translation | 502 | 502 | 502 | |||||||
Comprehensive income attributable to The Hertz Corporation and Subsidiaries' common stockholder | 22,771 | 137,261 | 137,261 | |||||||
Balance at Dec. 31, 2010 | 538,607 | 352 | 940,844 | -161,969 | -12,329 | -228,291 | ||||
Balance (in shares) at Dec. 31, 2010 | 28,763,452 | 35,197,167 | -6,433,715 | |||||||
Balance at Sep. 30, 2010 | ||||||||||
Comprehensive income: | ||||||||||
Net Income (loss) | 12,496 | |||||||||
Balance at Dec. 31, 2010 | 538,607 | |||||||||
Balance (in shares) at Dec. 31, 2010 | 28,763,452 | |||||||||
Comprehensive income: | ||||||||||
Net Income (loss) | -123,000 | 16,523 | ||||||||
Balance at Mar. 31, 2011 | ||||||||||
Balance at Dec. 31, 2010 | 538,607 | |||||||||
Balance (in shares) at Dec. 31, 2010 | 28,763,452 | |||||||||
Comprehensive income: | ||||||||||
Net Income (loss) | 125,649 | |||||||||
Comprehensive income attributable to The Hertz Corporation and Subsidiaries' common stockholder | 127,358 | |||||||||
Balance at Sep. 30, 2011 | ||||||||||
Balance at Dec. 31, 2010 | 538,607 | 352 | 940,844 | -161,969 | -12,329 | -228,291 | ||||
Balance (in shares) at Dec. 31, 2010 | 28,763,452 | 35,197,167 | -6,433,715 | |||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Issuance of common shares for director compensation | 1,592 | |||||||||
Stock option transactions | 4,772 | 7 | 4,765 | |||||||
Stock option transactions (in shares) | 672,394 | |||||||||
Share-based payment plans | 31,093 | 3,234 | 3,234 | |||||||
Issuance of common stock in settlement of vested performance shares | -2,745 | 2 | -2,747 | |||||||
Issuance of common stock in settlement of vested performance shares (in shares) | 145,428 | -52,388 | ||||||||
Issuance of common stock in settlement of vested restricted stock | -458 | -458 | ||||||||
Issuance of common stock in settlement of vested restricted stock (in shares) | 33,617 | -5,616 | ||||||||
Forward stock repurchase agreement | -100,000 | -100,000 | ||||||||
Comprehensive income: | ||||||||||
Net Income (loss) | 210,489 | 159,550 | 159,550 | 159,550 | ||||||
Interest rate swap | 10,259 | 10,259 | 10,259 | |||||||
Foreign currency translation | -5,547 | -5,547 | -5,547 | |||||||
Comprehensive income attributable to The Hertz Corporation and Subsidiaries' common stockholder | 144,252 | 164,262 | 164,262 | |||||||
Balance at Dec. 31, 2011 | 2,628,835 | 607,672 | 361 | 848,843 | -2,419 | -7,617 | -231,496 | |||
Balance (in shares) at Dec. 31, 2011 | 100 | 29,556,887 | 36,048,606 | -6,491,719 | ||||||
Balance at Sep. 30, 2011 | ||||||||||
Comprehensive income: | ||||||||||
Net Income (loss) | 58,800 | 33,901 | ||||||||
Balance at Dec. 31, 2011 | 2,628,835 | 607,672 | ||||||||
Balance (in shares) at Dec. 31, 2011 | 100 | 29,556,887 | ||||||||
Comprehensive income: | ||||||||||
Net Income (loss) | 145,298 | |||||||||
Comprehensive income attributable to The Hertz Corporation and Subsidiaries' common stockholder | 159,277 | |||||||||
Balance at Sep. 30, 2012 | 744,241 | |||||||||
Balance (in shares) at Sep. 30, 2012 | 28,058,117 | |||||||||
Balance at Jun. 30, 2012 | ||||||||||
Comprehensive income: | ||||||||||
Net Income (loss) | 251,300 | 55,500 | ||||||||
Comprehensive income attributable to The Hertz Corporation and Subsidiaries' common stockholder | 60,667 | |||||||||
Balance at Sep. 30, 2012 | $744,241 | |||||||||
Balance (in shares) at Sep. 30, 2012 | 28,058,117 |
CONSOLIDATED_STATEMENTS_OF_CAS2
CONSOLIDATED STATEMENTS OF CASH FLOWS - DOLLAR THRIFTY (Dollar Thrifty Automotive Group Inc., USD $) | 12 Months Ended | ||
Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net Income (loss) | $159,550,000 | $131,216,000 | $45,022,000 |
Depreciation: | |||
Vehicle depreciation | 317,814,000 | 362,233,000 | 460,660,000 |
Non-vehicle depreciation | 19,381,000 | 20,190,000 | 19,200,000 |
Net gains from disposition of revenue-earning vehicles | -46,887,000 | -63,084,000 | -35,086,000 |
Amortization | 7,505,000 | 7,290,000 | 7,994,000 |
Performance share incentive, stock option and restricted stock plans | 3,234,000 | 4,785,000 | 4,698,000 |
Interest income earned on restricted cash and investments | -397,000 | -653,000 | -3,202,000 |
Long-lived asset impairment | 1,057,000 | 2,592,000 | |
Provision for (recovery of) losses on receivables | 43,000 | -399,000 | 3,129,000 |
Deferred income taxes | 86,652,000 | 76,957,000 | 16,854,000 |
(Increase) decrease in fair value of derivatives | -3,244,000 | -28,694,000 | -28,848,000 |
Change in assets and liabilities, net of acquisitions: | |||
Income taxes payable/receivable | 47,017,000 | -61,357,000 | -3,220,000 |
Receivables | -7,675,000 | 6,442,000 | 28,574,000 |
Prepaid expenses and other assets | 14,433,000 | 6,337,000 | 12,275,000 |
Accounts payable | 2,810,000 | -1,531,000 | -2,522,000 |
Accrued liabilities | -6,472,000 | 1,687,000 | 6,761,000 |
Vehicle insurance reserves | -21,205,000 | -864,000 | -1,726,000 |
Other | -5,265,000 | 329,000 | 2,769,000 |
Net cash provided by operating activities | 567,294,000 | 461,941,000 | 535,924,000 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Revenue earning equipment expenditures | -1,168,532,000 | -1,239,088,000 | -1,060,251,000 |
Revenue-earning vehicles-Proceeds from sales | 757,766,000 | 856,775,000 | 1,477,368,000 |
Change in cash and cash equivalents-required minimum balance | 100,000,000 | -100,000,000 | |
Net change in restricted cash and investments | -75,461,000 | 345,786,000 | -22,750,000 |
Property, equipment and software-Purchases | -16,633,000 | -23,031,000 | -15,508,000 |
Property, equipment and software-Proceeds from sales | 359,000 | 464,000 | 104,000 |
Acquisitions, net of cash acquired | -8,000 | ||
Net cash used in investing activities | -402,501,000 | -59,094,000 | 278,955,000 |
Debt and other obligations: | |||
Proceeds from vehicle debt and other obligations | 1,537,903,000 | 526,876,000 | 44,781,000 |
Payments of vehicle debt and other obligations | -1,387,073,000 | -847,448,000 | -785,225,000 |
Payments of non-vehicle debt | -148,125,000 | -10,000,000 | -20,000,000 |
Issuance of common shares | 4,774,000 | 2,988,000 | 129,583,000 |
Common stock offering costs | -6,635,000 | ||
Net settlement of employee withholding taxes on share-based awards | -3,205,000 | -722,000 | |
Early termination of interest rate swap | -8,815,000 | ||
Forward stock repurchase agreement | -100,000,000 | ||
Payments of Financing Costs | -14,757,000 | -11,792,000 | -6,615,000 |
Net cash provided by (used in) financing activities | -119,298,000 | -340,098,000 | -644,111,000 |
Net decrease in cash and cash equivalents during the period | 45,495,000 | 62,749,000 | 170,768,000 |
CASH AND CASH EQUIVALENTS: | |||
Cash and cash equivalents at beginning of period | 463,153,000 | 400,404,000 | 229,636,000 |
Cash and cash equivalents at end of period | 508,648,000 | 463,153,000 | 400,404,000 |
Cash paid for (refund of): | |||
Interest | 66,559,000 | 82,923,000 | 96,569,000 |
Income taxes to (from) taxing authorities | -31,965,000 | 74,745,000 | 22,350,000 |
SUPPLEMENTAL DISCLOSURES OF INVESTING AND FINANCING NONCASH ACTIVITIES: | |||
Sales and incentives related to revenue-earning vehicles included in receivables | 23,611,000 | 5,340,000 | 33,704,000 |
Purchases of revenue-earning vehicles included in accounts payable | 5,707,000 | 1,261,000 | 370,000 |
Purchases of property, equipment and software included in accounts payable | $2,309,000 | $671,000 | $2,914,000 |
BASIS_OF_PRESENTATION_AND_SUMM
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - DOLLAR THRIFTY | 12 Months Ended | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | ||
Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | |||
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | Summary of Significant Accounting Policies | 1. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | 1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Principles of Consolidation | ||||
The consolidated financial statements include the accounts of Hertz Holdings and our wholly owned and majority owned domestic and international subsidiaries. In the event that Hertz Holdings is a primary beneficiary of a variable interest entity, the assets, liabilities, and results of operations of the variable interest entity will be included in our consolidated financial statements. All significant intercompany transactions have been eliminated in consolidation. | The accompanying condensed consolidated financial statements include the accounts of Dollar Thrifty Automotive Group, Inc. ("DTG") and its subsidiaries. DTG's significant wholly owned subsidiaries include DTG Operations, Inc., Thrifty, Inc., Dollar Rent A Car, Inc. and Rental Car Finance Corp. ("RCFC"). Thrifty, Inc. is the parent company of Thrifty Rent-A-Car System, Inc., which is the parent company of Dollar Thrifty Automotive Group Canada Inc. ("DTG Canada"). The term the "Company" is used to refer to DTG individually or collectively with its consolidated subsidiaries, as the context may require. | Dollar Thrifty Automotive Group, Inc. ("DTG") is the successor to Pentastar Transportation Group, Inc. Prior to December 23, 1997, DTG was a wholly owned subsidiary of Chrysler LLC (such entity or its successor entity, Chrysler Group LLC, as the context may require, and the relevant entity's subsidiaries and members of its affiliated group are hereinafter referred to as "Chrysler"). On December 23, 1997, DTG completed an initial public offering of all its outstanding common stock owned by Chrysler together with additional shares issued by DTG. | ||
Use of Estimates and Assumptions | ||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America, or “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. | The accounting policies set forth in Note 1 of notes to DTG's audited consolidated financial statements contained elsewhere in this prospectus have been followed in preparing the accompanying condensed consolidated financial statements. | The Company operates under a corporate structure that combines the management of operations and administrative functions for both the Dollar and Thrifty brands. Management makes business and operating decisions on an overall company basis. Financial results are not available by brand. | ||
Significant estimates inherent in the preparation of the consolidated financial statements include depreciation of revenue earning equipment, reserves for litigation and other contingencies, accounting for income taxes and related uncertain tax positions, pension and postretirement benefit costs, the fair value of assets and liabilities acquired in business combinations, the recoverability of long-lived assets, useful lives and impairment of long-lived tangible and intangible assets including goodwill, valuation of stock based compensation, public liability and property damage reserves, reserves for restructuring, allowance for doubtful accounts, and fair value of derivatives, among others. | ||||
Reclassifications | The condensed consolidated financial statements and notes thereto for interim periods included herein have not been audited by an independent registered public accounting firm. The condensed consolidated financial statements and notes thereto have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the Company's opinion, it made all adjustments (which include only normal recurring adjustments) necessary for a fair presentation of the results of operations for the interim periods presented. Results for interim periods are not necessarily indicative of results for a full year. | DTG's significant wholly owned subsidiaries include DTG Operations, Inc., Dollar Rent A Car, Inc., Thrifty, Inc. and Rental Car Finance Corp. ("RCFC"). Thrifty, Inc. is the parent company of Thrifty Car Sales, Inc. and Thrifty Rent-A-Car System, Inc., which is the parent company of Dollar Thrifty Automotive Group Canada Inc. ("DTG Canada"). RCFC is a special purpose financing entity, which was formed in 1995 and is appropriately consolidated with DTG and subsidiaries. RCFC is a separate legal entity whose assets are not available to satisfy any claims of creditors of DTG or any of its other subsidiaries. The term the "Company" is used to refer to DTG, individually or collectively with its consolidated subsidiaries, as the context may require. Dollar Rent A Car, Inc., the Dollar brand and DTG Operations, Inc. operating under the Dollar brand are individually and collectively referred to hereinafter as "Dollar". Thrifty, Inc., Thrifty Rent-A-Car System, Inc., Thrifty Car Sales, Inc., the Thrifty brand and DTG Operations, Inc. operating under the Thrifty brand are individually and collectively referred to hereinafter as "Thrifty". Intercompany accounts and transactions have been eliminated in consolidation. | ||
Certain prior period amounts have been reclassified to conform with current year presentation. | ||||
Acquisition Accounting | Nature of Business—The Company operates in the U.S. and Canada, and through its Dollar and Thrifty brands is primarily engaged in the business of the daily rental of vehicles to business and leisure customers through company-owned stores. The Company also sells vehicle rental franchises worldwide and provides sales and marketing, reservations, data processing systems, insurance and other services to franchisees. RCFC provides vehicle financing to the Company. | |||
We account for business combinations using the acquisition method, which requires an allocation of the purchase price of an acquired entity to the assets acquired and liabilities assumed based on their estimated fair values at the date of acquisition. Goodwill represents the excess of the purchase price over the net tangible and intangible assets acquired. | ||||
Revenue Recognition | Estimates—The preparation of the Company's consolidated financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts and disclosures in the consolidated financial statements. Actual results could differ materially from those estimates. | |||
Rental and rental related revenue (including cost reimbursements from customers where we consider ourselves to be the principal versus an agent) are recognized over the period the revenue earning equipment is rented or leased based on the terms of the rental or leasing contract. Maintenance management administrative fees are recognized monthly and maintenance management service revenue is recognized when services are performed. Revenue related to new equipment sales and consumables is recognized at the time of delivery to, or pick-up by, the customer and when collectability is reasonably assured. Fees from our licensees are recognized over the period the underlying licensees' revenue is earned (over the period the licensees' revenue earning equipment is rented). Certain truck and equipment leases are originated with the intention of syndicating to banks, and upon the sale of rights to these direct financing leases, the net gain is recorded in revenue. | ||||
Sales tax amounts collected from customers have been recorded on a net basis. | Cash and Cash Equivalents—Cash and cash equivalents include cash on hand and on deposit, including highly liquid investments with initial maturities of three months or less. | |||
Cash and Cash Equivalents and Other | ||||
We consider all highly liquid debt instruments purchased with an original maturity of three months or less to be cash equivalents. | Cash and Cash Equivalents—Required Minimum Balance—In 2009, the Company amended its Senior Secured Credit Facilities (hereinafter defined). Under the terms of that amendment, the Company was required to maintain a minimum of $100 million at all times. In February 2011, the Company further amended its Senior Secured Credit Facilities, eliminating the requirement to maintain a minimum of $100 million of cash and cash equivalents and replacing it with certain other covenants. | |||
In our consolidated statements of cash flows, we net cash flows from revolving borrowings in the line item “Proceeds (payments) under the revolving lines of credit, net.” The contractual maturities of such borrowings may exceed 90 days in certain cases. | ||||
Restricted Cash and Cash Equivalents | Restricted Cash and Investments—Restricted cash and investments are restricted for the acquisition of vehicles and other specified uses under the rental car asset-backed note indenture and other agreements (Note 8). A portion of these funds is restricted due to the Like-Kind Exchange Program (hereinafter defined) for deferred tax gains on eligible vehicle remarketing. As permitted by the indenture, these funds are primarily held in highly rated money market funds with investments primarily in government and corporate obligations. Restricted cash and investments are excluded from cash and cash equivalents. Interest earned on restricted cash and investments was $0.4 million, $0.7 million and $3.2 million, for 2011, 2010 and 2009, respectively, and remains in restricted cash and investments. | |||
Restricted cash and cash equivalents includes cash and cash equivalents that are not readily available for our normal disbursements. Restricted cash and cash equivalents are restricted for the purchase of revenue earning vehicles and other specified uses under our Fleet Debt facilities, for our Like-Kind Exchange Program, or “LKE Program,” and to satisfy certain of our self-insurance regulatory reserve requirements. These funds are primarily held in highly rated money market funds with investments primarily in government and corporate obligations. Restricted cash and cash equivalents are excluded from cash and cash equivalents. | ||||
Concentration of Credit Risk | Concentration of Credit Risk—Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, cash and cash equivalents—required minimum balance, restricted cash and investments, interest rate swaps and caps, vehicle manufacturer receivables and trade receivables. The Company limits its exposure on cash and cash equivalents, cash and cash equivalents—required minimum balance and restricted cash and investments by investing in Aaa or P-1 rated funds and short-term time deposits with a diverse group of high quality financial institutions. The Company's exposure relating to interest rate swaps and caps is mitigated by diversifying the financial instruments among various counterparties, which consist of major financial institutions. Receivables from vehicle manufacturers consist primarily of amounts due under guaranteed residual, buyback, incentive and promotion programs. The Company's financial condition and results of operations could be adversely affected if one or more of its primary vehicle manufacturers were unable to meet their obligations to the Company. Concentrations of credit risk with respect to trade receivables are limited due to the large number of customers comprising the Company's customer base and their dispersion across different geographic areas. Additionally, the Company limits its exposure to credit risk through performing credit reviews and monitoring the financial strength of its significant accounts. | |||
Our cash and cash equivalents are invested in various investment grade institutional money market accounts and 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. We seek to mitigate such risks by spreading the risk across multiple counterparties and monitoring the risk profiles of these counterparties. In addition, we have credit risk from derivative financial instruments used in hedging activities. We limit our exposure relating to derivative financial instruments by diversifying the financial instruments among various counterparties, which consist of major financial institutions. | ||||
Receivables | Allowance for Doubtful Accounts—An allowance for doubtful accounts is generally established during the period in which receivables are recorded. The allowance is maintained at a level deemed appropriate based on loss experience and other factors affecting collectability. | |||
Receivables are stated net of allowances for doubtful accounts and represent credit extended to manufacturers and customers that satisfy defined credit criteria. The estimate of the allowance for doubtful accounts is based on our historical experience and our judgment as to the likelihood of ultimate payment. Actual receivables are written-off against the allowance for doubtful accounts when we determine the balance will not be collected. Bad debt expense is reflected as a component of "Selling, general and administrative" in our consolidated statements of operations. | ||||
Property and Equipment | Financing Issue Costs—Financing issue costs related to vehicle debt and the Senior Secured Credit Facilities are deferred and amortized to interest expense over the term of the related debt using the effective interest method. | |||
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: | ||||
Revenue-Earning Vehicles and Related Vehicle Depreciation Expense—Revenue-earning vehicles are stated at cost, net of related discounts. At December 31, 2011, Non-Program Vehicles accounted for approximately 96% of the Company's total fleet. | ||||
Buildings | 3 to 50 years | The Company must estimate the expected residual values of Non-Program Vehicles at the expected time of disposal to determine monthly depreciation rates. The estimation of residual values requires the Company to make assumptions regarding the age and mileage of the car at the time of disposal, as well as the general used vehicle market conditions at the time of sale, including the impact of seasonality on vehicle residuals. The Company evaluates estimated residual values at least quarterly, and adjusts depreciation rates accordingly, on a prospective basis. Differences between actual residual values and those estimated by the Company result in a gain or loss on disposal and are recorded as an adjustment to depreciation expense. Actual timing of disposal either shorter or longer than the life used for depreciation purposes could result in a loss or gain on sale. Vehicle rental companies bear residual value risk for these vehicles, which are referred to as "Non-Program Vehicles". Generally, the average holding term for Non-Program Vehicles is approximately 18 to 22 months. | ||
Furniture and fixtures | 1 to 15 years | |||
Capitalized internal use software | 1 to 15 years | The Company is required to depreciate the vehicle according to the terms of the guaranteed depreciation or repurchase program ("Program Vehicles") and in doing so is guaranteed to receive the full net book value in proceeds upon the sale of the vehicle. In some cases, the sales proceeds are received directly from auctions, with any shortfall in value being paid by the vehicle manufacturer. With certain other vehicle manufacturers, the entire balance of proceeds from vehicle sales comes directly from the manufacturer. In either case, the Company bears the risk of collectability on the receivable from the vehicle manufacturer. The Company monitors its vehicle manufacturer receivables based on time outstanding, manufacturer strength and length of the relationship. Generally, the average holding term for Program Vehicles is approximately six to eight months. | ||
Service cars and service equipment | 1 to 13 years | |||
Other intangible assets | 3 to 20 years | Property and Equipment—Property and equipment are recorded at cost and are depreciated using principally the straight-line method over the estimated useful lives of the related assets. Estimated useful lives generally range from ten to 30 years for buildings and improvements and one to seven years for furniture and equipment. Leasehold improvements are amortized over the estimated useful lives of the related assets or leases, whichever is shorter. | ||
Leasehold improvements | The shorter of their economic lives or the lease term | |||
We follow the practice of charging maintenance and repairs, including the cost of minor replacements, to maintenance expense accounts. Costs of major replacements of units of property are capitalized to property and equipment accounts and depreciated on the basis indicated above. Gains and losses on dispositions of property and equipment are included in income as realized. During the years ended December 31, 2012 and 2011, gains from the dispositions of property and equipment of $6.3 million and $43.1 million, respectively, were included in "Direct operating" in our consolidated statements of operations. | Software—Software is recorded at cost and amortized using the straight-line method generally ranging from three to five years. The remaining useful life of software is evaluated annually to assess whether events and circumstances warrant a revision to the remaining amortization period. | |||
Revenue Earning Equipment | ||||
Revenue earning equipment is stated at cost, net of related discounts. Useful lives are as follows: | Website Development Costs—The Company capitalizes qualifying internal-use software development, including Website development, incurred subsequent to the completion of the preliminary project stage. Development costs are amortized over the shorter of the expected useful life of the software or five years. Costs related to planning, maintenance, and minor upgrades are expensed as incurred. | |||
Long-Lived Assets—The Company reviews the value of long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable based upon estimated future cash flows and records an impairment charge, equaling the excess of the carrying value over the estimated fair value, if the carrying value exceeds estimated future cash flows. | ||||
Cars | 4 to 28 months | |||
Other equipment | 24 to 108 months | Accounts Payable—Book overdrafts of $19.0 million and $17.0 million, which represent outstanding checks not yet presented to the bank, are included in accounts payable to reflect the Company's outstanding obligations at December 31, 2011 and 2010, respectively. These amounts do not represent bank overdrafts, which would constitute checks presented in excess of cash on hand, and would be effectively a loan to the Company. | ||
Generally, when revenue earning equipment is acquired, we estimate the period that we will hold the asset, primarily based on historical measures of the amount of rental activity (e.g., automobile mileage and equipment usage) and the targeted age of equipment at the time of disposal. We also estimate the residual value of the applicable revenue earning equipment at the expected time of disposal. The residual values for rental vehicles are affected by many factors, including make, model and options, age, physical condition, mileage, sale location, time of the year and channel of disposition (e.g., auction, retail, dealer direct). The residual value for rental equipment is affected by factors which include equipment age and amount of usage. Depreciation is recorded on a straight-line basis 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 vehicle and equipment sales can also be affected by external factors such as the economy, natural disasters, fuel prices and incentives offered by manufacturers of new cars. These key factors are considered when estimating future residual values and assessing depreciation rates. As a result of this ongoing assessment, we make periodic adjustments to depreciation rates of revenue earning equipment in response to changed market conditions. Upon disposal of revenue earning equipment, depreciation expense is adjusted for the difference between the net proceeds received and the remaining net book value. | ||||
Within Donlen, revenue earning equipment is under longer term lease agreements with our customers. These leases contain provisions whereby we have a contracted residual value guaranteed to us by the lessee, such that we do not experience any gains or losses on the disposal of these vehicles. Therefore depreciation rates on these vehicles are not adjusted at any point in time per the associated lease contract. | Derivative Instruments—The Company records all derivatives on the balance sheet as either assets or liabilities measured at their fair value and changes in the derivatives' fair value are recognized currently in earnings unless specific hedge accounting criteria are met. The Company has entered into interest rate swap and cap agreements, which do not qualify for hedge accounting treatment; therefore, the changes in the interest rate swap and cap agreements' fair values have been recognized as an (increase) decrease in fair value of derivatives in the consolidated statements of income. The Company has also entered into interest rate swap agreements which constituted cash flow hedges and qualified for hedge accounting treatment; therefore, changes in fair value are recorded in accumulated other comprehensive loss (Note 9). All cash flows associated with cash flow hedges are classified in operating activities in the Consolidated Statements of Cash Flows. | |||
Environmental Liabilities | ||||
The use of automobiles and other vehicles is subject to various governmental controls designed to limit environmental damage, including that caused by emissions and noise. Generally, these controls are met by the manufacturer, except in the case of occasional equipment failure requiring repair by us. To comply with environmental regulations, measures are taken at certain locations to reduce the loss of vapor during the fueling process and to maintain, upgrade and replace underground fuel storage tanks. We also incur and provide for expenses for the cleanup of petroleum discharges and other alleged violations of environmental laws arising from the disposition of waste products. We do not believe that we will be required to make any material capital expenditures for environmental control facilities or to make any other material expenditures to meet the requirements of governmental authorities in this area. Liabilities for these expenditures are recorded at undiscounted amounts when it is probable that obligations have been incurred and the amounts can be reasonably estimated. | Vehicle Insurance Reserves—Provisions for public liability and property damage and supplemental liability insurance ("SLI") on self-insured claims are made by charges to direct vehicle and operating expense. Accruals for such charges are based upon actuarially determined evaluations of estimated ultimate liabilities on reported and unreported claims, prepared on a semi-annual basis. Historical data related to the amount and timing of payments for self-insured claims is utilized in preparing the actuarial evaluations. The accrual for public liability and property damage claims is discounted based upon the actuarially determined estimated timing of payments to be made in the future. The Company records expense related to public liability and property damage and SLI on a monthly basis based on rental volume and projections of ultimate losses, expenses, premiums and administrative costs that are derived from historical accident claim experience and trends. Management reviews the actual timing of payments as compared with the semi-annual actuarial estimate of timing of payments and has determined that there has been no material differences in the timing of payments for each of the three years in the period ended December 31, 2011. Because of less predictability in the estimated timing of payments, self-insured reserves for SLI are not discounted. | |||
Public Liability and Property Damage | ||||
The obligation for public liability and property damage on self-insured U.S. and international vehicles and 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 our estimates change or if actual results differ from these assumptions, the amount of the recorded liability is adjusted to reflect these results. | Foreign Currency Translation—Foreign assets and liabilities are translated using the exchange rate in effect at the balance sheet date, and results of operations are translated using an average rate for the period. Translation adjustments are accumulated and reported as a component of accumulated other comprehensive loss. | |||
Pension Benefit Obligations | ||||
Our 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. Actual results that differ from our assumptions are accumulated and amortized over future periods and, therefore, generally affect our recognized expense in such future periods. While we believe that the assumptions used are appropriate, significant differences in actual experience or significant changes in assumptions would affect our pension costs and obligations. | Revenue Recognition—Revenues from vehicle rentals are recognized as earned on a daily basis under the related rental contracts with customers. Revenues from leasing vehicles to franchisees are principally under operating leases with fixed monthly payments and are recognized ratably as earned over the lease terms. Revenues from fees and services include providing sales and marketing, reservations, information systems and other services to franchisees. Revenues from these services are generally based on a percentage of franchisee rental revenue or upon providing reservations and are recognized as earned on a monthly basis. Initial franchise fees are recognized upon substantial completion of all material services and conditions of the franchise sale, which coincides with the date of sale and commencement of operations by the franchisee. | |||
Foreign Currency Translation and Transactions | ||||
Assets and liabilities of international subsidiaries are translated at the rate of exchange in effect on the balance sheet date; income and expenses are translated at the average rate of exchange prevailing during the year. The related translation adjustments are reflected in “Accumulated other comprehensive loss” in the equity section of our consolidated balance sheets. As of December 31, 2012 and 2011, the accumulated foreign currency translation gain was $102.7 million and $91.3 million, respectively. Foreign currency gains and losses resulting from transactions are included in earnings. | Advertising Costs—Advertising costs are primarily expensed as incurred. The Company incurred advertising expense of $20.1 million, $20.9 million and $21.2 million, for 2011, 2010 and 2009, respectively. | |||
Derivative Instruments | ||||
We are exposed to a variety of market risks, including the effects of changes in interest rates, gasoline and diesel fuel prices and foreign currency exchange rates. We manage our exposure to these market risks through our regular operating and financing activities and, when deemed appropriate, through the use of derivative financial instruments. Derivative financial instruments are viewed as risk management tools and have not been used for speculative or trading purposes. In addition, derivative financial instruments are entered into with a diversified group of major financial institutions in order to manage our exposure to counterparty nonperformance on such instruments. We account for all derivatives in accordance with GAAP, which requires that all derivatives be recorded on the balance sheet as either assets or liabilities measured at their fair value. The effective portion of changes in fair value of derivatives designated as cash flow hedging instruments is recorded as a component of other comprehensive income. The ineffective portion is recognized currently in earnings within the same line item as the hedged item, based upon the nature of the hedged item. For derivative instruments that are not part of a qualified hedging relationship, the changes in their fair value are recognized currently in earnings. See Note 14—Financial Instruments. | Environmental Costs—The Company's operations include the storage of gasoline in underground storage tanks at certain company-owned stores. Liabilities incurred in connection with the remediation of accidental fuel discharges are recorded when it is probable that obligations have been incurred and the amounts can be reasonably estimated. | |||
Income Taxes | ||||
Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates is recognized in the statement of operations in the period that includes the enactment date. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not 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 change to reflect tax on these amounts. See Note 9—Taxes on Income. | Operating Leases— | |||
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” in our consolidated statements of operations and for the years ended December 31, 2012, 2011 and 2010 were $158.0 million, $145.8 million and $133.8 million, respectively. | Contingent Rent—The Company recognizes contingent rent expense associated with certain airport concession agreements monthly as incurred when the Company's achievement of the annual targeted qualifying revenue is probable. | |||
Goodwill | ||||
Goodwill is not amortized but is subject to periodic testing for impairment in accordance with Financial Accounting Standards Board, or "FASB," Accounting Standards Codification, or "ASC," Topic 350, “Intangibles—Goodwill and Other,” or “ASC 350,” at the reporting unit level which is one level below our operating segments. The assessment of goodwill impairment is conducted by estimating and comparing the fair value of our reporting units, as defined in ASC 350, to their carrying value as of that date. The fair value is estimated using an income approach whereby the fair value of the reporting unit is based on the future cash flows that each reporting unit's assets can be expected to generate. Future cash flows are based on forward-looking information regarding market share and costs for each reporting unit and are discounted using an appropriate discount rate. Future discounted cash flows can be affected by changes in industry or market conditions or the rate and extent to which anticipated synergies or cost savings are realized with newly acquired entities. The test for impairment is conducted annually each October 1st, and more frequently if events occur or circumstances change that indicate that the fair value of a reporting unit may be below its carrying amount. | Scheduled Rent Increases—The Company recognizes scheduled rent increases on a straight-line basis over the remaining lease term. | |||
Intangible and Long-lived Assets | ||||
Intangible assets include concession agreements, technology, customer relationships, trademarks and 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 two to fifteen 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 in accordance with FASB ASC Topic 360, “Property, Plant, and Equipment,” or “ASC 360.” 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. Intangible assets determined to have indefinite useful lives are not amortized but are tested for impairment annually each October 1st and more frequently if events occur or circumstances change that indicate an asset may be impaired. | Income Taxes—The Company has provided for income taxes on its separate taxable income or loss and other tax attributes. Deferred income taxes are provided for the temporary differences between the financial reporting basis and the tax basis of the Company's assets and liabilities. A valuation allowance is recorded for deferred income tax assets when management determines it is more likely than not that such assets will not be realized. The Company has established a valuation allowance related to DTG Canada and a portion of the Company's net operating losses for state tax purposes. The Company evaluates its tax policies quarterly to identify uncertain tax positions. | |||
Stock‑Based Compensation | ||||
We measure 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 to be recognized over the period during which the employee is required to provide service in exchange for the award. We have 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 life, dividend yield and risk-free interest rate. See Note 7-Stock‑Based Compensation. | Earnings Per Share—Basic earnings per share ("EPS") is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted EPS is based on the combined weighted average number of common shares and dilutive potential common shares outstanding which include, where appropriate, the assumed exercise of options. In computing diluted EPS, the Company utilizes the treasury stock method. | |||
We are using equity accounting for restricted stock unit and performance stock unit 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 a performance condition. For performance stock units, we re-assess the probability of achieving the applicable performance condition each reporting period and adjust the recognition of expense accordingly. The performance condition is not considered in determining the grant date fair value. | ||||
Franchise Revenues and Transactions | Stock-Based Compensation—The Company uses the fair value-based method of accounting for stock-based compensation. All performance share, restricted stock and stock option awards are accounted for using the fair value-based method for the 2011, 2010 and 2009 periods. The fair value of these common shares is determined based on the closing market price of the Company's common shares at the specific date on which the shares were granted. In 2011 and 2010, the Company did not issue any stock options. In 2009, the Company issued approximately 1,120,000 stock options at a weighted average grant-date fair value per share of $4.44. | |||
“Franchise revenues” includes franchise fees for use of our brands and services. Generally franchise fees from franchised locations are based on a percentage of net sales of the franchised business and are recognized as earned and when collectability is reasonably assured. | ||||
Initial franchise fees are recorded as deferred income when received and are recognized as revenue when all material services and conditions related to the franchise fee have been substantially performed. | New Accounting Standards— | |||
Renewal franchise fees are recognized as revenue when the license agreements are effective and collectability is reasonably assured. | ||||
Other (income) expense, net includes the gains or losses from the sales of our operations or assets to new and existing franchisees. Such gains or losses are included in operating income because they are expected to be a recurring part of our business. | In January 2010, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") ASU 2010-06, "Fair Value Measurements and Disclosures (ASC Topic 820): Improving Disclosures about Fair Value Measurements" which amends Accounting Standards Codification ("ASC") Subtopic 820, "Fair Value Measurements and Disclosures" ("ASU 2010-06") to add new requirements for disclosures about transfers into and out of Levels 1 and 2 and separate disclosures about purchases, sales, issuances, and settlements relating to Level 3 measurements. ASU 2010-06 also clarifies existing fair value disclosures about the level of disaggregation and about inputs and valuation techniques used to measure fair value. The Company adopted the provisions of ASU 2010-06 regarding disclosures about transfers into and out of Levels 1 and 2 as required on January 1, 2010 and adopted the remaining provisions of ASU 2010-06 regarding separate disclosures about purchases, sales, issuances, and settlements relating to Level 3 measurements as required on January 1, 2011. The adoption of this latest provision had no impact on the Company's financial statements as the Company has no Level 3 measurements. | |||
Recently Issued Accounting Pronouncements | ||||
In December 2011, the FASB issued Accounting Standards Update, or "ASU," No. 2011-11, "Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities," or "ASU 2011-11" to amend the requirement for an entity to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. An entity should provide the disclosures required by those amendments retrospectively for all comparative periods presented. ASU 2011-11 is effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. We plan to adopt ASU 2011-11 on January 1, 2013, as required, but do not believe this guidance will have a significant impact on our consolidated financial statements or financial statement disclosures. | In May 2011, the FASB issued ASU 2011-04, "Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRS" ("ASU 2011-04"), which amends U.S. GAAP to converge U.S. GAAP and International Financial Reporting Standards ("IFRS") by changing the wording used to describe many of the requirements in U.S. GAAP for measuring fair value and for disclosing information about fair value measurements. ASU 2011-04 is effective for interim and annual periods beginning after December 15, 2011; early adoption is not permitted. The Company adopted ASU 2011-04 on January 1, 2012, as required, but does not believe this guidance will have a significant impact on the Company's consolidated financial statements. | |||
In July 2012, the FASB issued ASU No. 2012-02, "Intangibles—Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment," or "ASU 2012-02" which states that an entity has the option first to assess qualitative factors to determine whether the existence of events and circumstances indicates that it is more likely than not that an indefinite-lived intangible asset is impaired. If, after assessing the totality of events and circumstances, an entity concludes that it is not more likely than not that the indefinite-lived intangible asset is impaired, then the entity is not required to take further action. However, if an entity concludes otherwise, then it is required to determine the fair value of the indefinite-lived intangible asset and perform the quantitative impairment test by comparing the fair value with the carrying amount. This provision is effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. This accounting guidance is not expected to have a material impact on our consolidated financial statements or financial statement disclosures. | ||||
In February 2013, the FASB issued ASU No. 2013-02, "Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income," or "ASU 2013-02" which requires disclosure of significant amounts reclassified out of accumulated other comprehensive income by component and their corresponding effect on the respective line items of net income. This guidance is effective for reporting periods beginning after December 15, 2012 and is not expected to have a material impact on our consolidated financial statements or financial statement disclosures. | In June 2011, the FASB issued ASU 2011-05, "Comprehensive Income—Presentation of Comprehensive Income" ("ASU 2011-05"). ASU 2011-05 eliminates the option to present the components of other comprehensive income as part of the statement of stockholders' equity. It requires an entity to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. In December 2011, the FASB issued ASU 2011-12, "Comprehensive Income—Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in ASU 2011-05," to defer the effective date of the specific requirement to present items that are reclassified out of accumulated other comprehensive income to net income alongside their respective components of net income and other comprehensive income. All other provisions of this update, which are to be applied retrospectively, are effective for fiscal years, and interim periods within those years, beginning after December 15, 2011. The Company adopted ASU 2011-05 and ASU 2011-12 on January 1, 2012, as required. | |||
In December 2011, the FASB issued ASU 2011-11, "Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities" ("ASU 2011-11") to amend the requirement for an entity to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. An entity should provide the disclosures required by those amendments retrospectively for all comparative periods presented. ASU 2011-11 is effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. The Company plans to adopt ASU 2011-11 on January 1, 2013, as required, but does not believe this guidance will have a significant impact on the Company's consolidated financial statements. | ||||
EARNINGS_PER_SHARE_DOLLAR_THRI3
EARNINGS PER SHARE - DOLLAR THRIFTY (Dollar Thrifty Automotive Group Inc.) | 9 Months Ended | 12 Months Ended | |||||||||||||||||||||||
Sep. 30, 2012 | Dec. 31, 2011 | ||||||||||||||||||||||||
Dollar Thrifty Automotive Group Inc. | |||||||||||||||||||||||||
EARNINGS PER SHARE | 5. EARNINGS PER SHARE | 2. EARNINGS PER SHARE | |||||||||||||||||||||||
Basic earnings per share ("EPS") is computed by dividing net income by the weighted-average number of common shares outstanding during the period. Diluted EPS is based on the combined weighted-average number of common shares and dilutive potential common shares outstanding which include, where appropriate, the assumed exercise of options. In computing diluted EPS, the Company utilizes the treasury stock method. | The computation of weighted average common and common equivalent shares used in the calculation of basic and diluted EPS is shown in the following table: | ||||||||||||||||||||||||
The computation of weighted-average common and common equivalent shares used in the calculation of basic and diluted EPS is shown in the following table (in thousands, except share and per share data): | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2011 | 2010 | 2009 | |||||||||||||||||||||||
Three Months Ended | Nine Months Ended | (In Thousands, Except Share and Per | |||||||||||||||||||||||
September 30, | September 30, | Share Data) | |||||||||||||||||||||||
2012 | 2011 | 2012 | 2011 | Net income | $ | 159,550 | $ | 131,216 | $ | 45,022 | |||||||||||||||
Net income | $ | 55,500 | $ | 66,621 | $ | 145,298 | $ | 125,649 | |||||||||||||||||
Basic EPS: | |||||||||||||||||||||||||
Basic EPS: | Weighted average common shares | 28,965,187 | 28,623,108 | 22,687,077 | |||||||||||||||||||||
Weighted-average common shares | 27,905,118 | 28,958,718 | 28,217,067 | 28,872,747 | |||||||||||||||||||||
Basic EPS | $ | 5.51 | $ | 4.58 | $ | 1.98 | |||||||||||||||||||
Basic EPS | $ | 1.99 | $ | 2.3 | $ | 5.15 | $ | 4.35 | |||||||||||||||||
Diluted EPS: | |||||||||||||||||||||||||
Diluted EPS: | Weighted average common shares | 28,965,187 | 28,623,108 | 22,687,077 | |||||||||||||||||||||
Weighted-average common shares | 27,905,118 | 28,958,718 | 28,217,067 | 28,872,747 | Shares contingently issuable: | ||||||||||||||||||||
Shares contingently issuable: | Stock options | 1,913,783 | 1,226,089 | 762,673 | |||||||||||||||||||||
Stock options | 803,982 | 1,964,321 | 854,272 | 1,984,419 | Performance awards and non-vested shares | 94,261 | 125,225 | 255,775 | |||||||||||||||||
Performance awards and non-vested shares | 127,418 | 113,734 | 111,431 | 90,581 | Employee compensation shares deferred | 47,232 | 49,374 | 105,402 | |||||||||||||||||
Employee compensation shares deferred | 24,577 | 46,604 | 29,805 | 48,440 | Director compensation shares deferred | 220,778 | 221,485 | 155,611 | |||||||||||||||||
Director compensation shares deferred | 224,535 | 221,452 | 223,952 | 220,554 | |||||||||||||||||||||
Shares applicable to diluted | 31,241,241 | 30,245,281 | 23,966,538 | ||||||||||||||||||||||
Shares applicable to diluted | 29,085,630 | 31,304,829 | 29,436,527 | 31,216,741 | |||||||||||||||||||||
Diluted EPS | $ | 5.11 | $ | 4.34 | $ | 1.88 | |||||||||||||||||||
Diluted EPS | $ | 1.91 | $ | 2.13 | $ | 4.94 | $ | 4.03 | |||||||||||||||||
At December 31, 2011 and 2010, all options to purchase shares of common stock were included in the computation of diluted EPS because no exercise price was greater than the average market price of the common shares. At December 31, 2009, 356,970 outstanding common stock equivalents that were anti-dilutive were excluded from the computation of diluted EPS. | |||||||||||||||||||||||||
For the three and nine months ended September 30, 2012 and 2011, all options to purchase shares of common stock were included in the computation of diluted EPS because no exercise price was greater than the average per share market price of the common shares. | |||||||||||||||||||||||||
Although there have been no significant equity grants since 2010, shares included in the diluted EPS calculation increased on a year-over-year basis from December 31, 2010 to December 31, 2011. The Company uses the treasury stock method to determine the denominator used in the diluted EPS calculation. To derive the denominator, the number of outstanding options is reduced by the number of shares that would be repurchased from assumed proceeds of certain defined items including the exercise price of the option and the excess tax benefit that would result from the assumed exercise of the option. However, the excess tax benefit component is included only if the assumed tax benefit would decrease the Company's current taxes payable. Since the Company is not a taxpayer for federal income tax purposes in 2011, it does not benefit from the tax deduction related to the assumed option exercises for purposes of the diluted share calculation as it did in 2010, thus resulting in an increase in the dilutive EPS denominator of approximately 700,000 shares. When the Company becomes a taxpayer in the future, the tax benefit will be incorporated into the diluted share calculation and the shares included in the diluted EPS calculation will be reduced by the shares repurchased from the assumed proceeds; however, other factors, such as the Company's stock price, could impact the diluted EPS calculation. See Note 13 for further discussion of share repurchase program. | |||||||||||||||||||||||||
Shares included in the diluted EPS calculation related to shares contingently issuable for stock options decreased on a year-over-year basis for both the three and nine months ended September 30, 2012, from the three and nine months ended September 30, 2011. The Company uses the treasury stock method to determine the denominator used in the diluted EPS calculation. To derive the denominator, the number of outstanding options is reduced by the number of shares that would be repurchased from assumed proceeds of certain defined items including the exercise price of the option and the excess tax benefit that would result from the assumed exercise of the option. However, the excess tax benefit component is included only if the assumed tax benefit would decrease the Company's current taxes payable. In 2012, the Company has projected that it will be a taxpayer and the tax benefit of the repurchases of shares from the assumed proceeds is incorporated into the diluted share calculation. The impact of the assumed tax benefit in 2012 is a reduction in diluted shares outstanding of approximately 500,000 shares. In 2011, the Company was not a taxpayer for federal income tax purposes and did not benefit from the tax deduction related to the assumed option exercises for purposes of the diluted share calculation, thus increasing the number of shares included in the diluted EPS calculation by approximately 800,000 shares. Other factors, such as the Company's stock price and stock options exercised, also impact the diluted EPS calculation. | |||||||||||||||||||||||||
During the three and nine months ended September 30, 2012, the Company repurchased 22,494 and 1,821,137 shares of its common stock, respectively, which reduced the weighted-average common shares outstanding. See Note 10 for further discussion of the share repurchase program. | |||||||||||||||||||||||||
RECEIVABLES_DOLLAR_THRIFTY1
RECEIVABLES - DOLLAR THRIFTY (Dollar Thrifty Automotive Group Inc.) | 9 Months Ended | 12 Months Ended | ||||||||||||||
Sep. 30, 2012 | Dec. 31, 2011 | |||||||||||||||
Dollar Thrifty Automotive Group Inc. | ||||||||||||||||
RECEIVABLES | 6. RECEIVABLES | 3. RECEIVABLES | ||||||||||||||
Receivables consist of the following (in thousands): | Receivables consist of the following: | |||||||||||||||
September 30, | December 31, | December 31, | ||||||||||||||
2012 | 2011 | 2011 | 2010 | |||||||||||||
Trade accounts receivable and other | $ | 85,476 | $ | 74,403 | (In Thousands) | |||||||||||
Vehicle manufacturer receivables | 41,078 | 21,510 | Trade accounts receivable and other | $ | 74,403 | $ | 68,528 | |||||||||
Car sales receivable | 3,826 | 2,287 | Vehicle manufacturer receivables | 21,510 | 4,543 | |||||||||||
Car sales receivable | 2,287 | 1,100 | ||||||||||||||
130,380 | 98,200 | |||||||||||||||
Less: Allowance for doubtful accounts | (2,163 | ) | (2,840 | ) | 98,200 | 74,171 | ||||||||||
Less: Allowance for doubtful accounts | (2,840 | ) | (4,715 | ) | ||||||||||||
$ | 128,217 | $ | 95,360 | |||||||||||||
$ | 95,360 | $ | 69,456 | |||||||||||||
Trade accounts receivable and other include primarily amounts due from rental customers, franchisees and tour operators arising from billings under standard credit terms for services provided in the normal course of business. | ||||||||||||||||
Trade accounts receivable and other include primarily amounts due from rental customers, franchisees and tour operators arising from billings under standard credit terms for services provided in the normal course of business. | ||||||||||||||||
Vehicle manufacturer receivables include primarily amounts due under guaranteed residual, buyback and Non-Program Vehicle incentive programs, which are paid according to contract terms and are generally received within 60 days. | ||||||||||||||||
Vehicle manufacturer receivables include primarily amounts due under guaranteed residual, buyback and Non-Program Vehicle incentive programs, which are paid according to contract terms and are generally received within 60 days. | ||||||||||||||||
Car sales receivable include primarily amounts due from car sale auctions for the sale of both Program Vehicles and Non-Program Vehicles. | ||||||||||||||||
Car sales receivable include primarily amounts due from car sale auctions for the sale of both Program Vehicles and Non-Program Vehicles. | ||||||||||||||||
Allowance for doubtful accounts represents potentially uncollectible amounts owed to the Company from franchisees, tour operators, corporate account customers and others. | ||||||||||||||||
Allowance for doubtful accounts represents potentially uncollectible amounts owed to the Company from franchisees, tour operators, corporate account customers and others. | ||||||||||||||||
REVENUEEARNING_VEHICLES_DOLLAR
REVENUE-EARNING VEHICLES - DOLLAR THRIFTY (Dollar Thrifty Automotive Group Inc.) | 12 Months Ended | |||||||
Dec. 31, 2011 | ||||||||
Dollar Thrifty Automotive Group Inc. | ||||||||
REVENUE-EARNING VEHICLES | 4. REVENUE-EARNING VEHICLES | |||||||
Revenue-earning vehicles consist of the following: | ||||||||
December 31, | ||||||||
2011 | 2010 | |||||||
(In Thousands) | ||||||||
Revenue-earning vehicles | $ | 1,858,766 | $ | 1,668,473 | ||||
Less: Accumulated depreciation | (390,931 | ) | (326,651 | ) | ||||
$ | 1,467,835 | $ | 1,341,822 | |||||
The Company has multi-year vehicle supply agreements with both Chrysler and Ford Motor Company covering vehicle purchases through the 2012 and 2013 model years, respectively, and has an annual vehicle purchase agreement with General Motors Company covering vehicle purchases through the 2012 model year. See Note 14 for the amount of outstanding vehicle purchase commitments. | ||||||||
The Company acquires both Program and Non-Program Vehicles from various manufacturers and receives payments under its various supplier agreements for promotional payments, incentives primarily related to the disposal of revenue-earning vehicles and interest reimbursement for Program Vehicles while at auction and for certain delivery related interest costs. The aggregate amount of payments recognized from manufacturers for guaranteed residual value program payments, buyback or repurchase payments, promotional payments, interest reimbursement and other incentives, other than recovery costs, totaled $180.5 million, $175.6 million and $524.4 million in 2011, 2010 and 2009, respectively, of which a substantial portion of the payments relate to the guaranteed residual value or manufacturer buyback programs. The outstanding balances at year-end are included in Vehicle Manufacturer Receivables within Receivables, net on the consolidated balance sheet. | ||||||||
VEHICLE_DEPRECIATION_AND_LEASE3
VEHICLE DEPRECIATION AND LEASE CHARGES, NET - DOLLAR THRIFTY | 6 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | ||||||||||||||||||||||||||||||||||||||||||
Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | ||||||||||||||||||||||||||||||||||||||||||||
VEHICLE DEPRECIATION AND LEASE CHARGES, NET | Depreciation of Revenue Earning Equipment and Lease Charges | Depreciation of Revenue Earning Equipment and Lease Charges | 4. VEHICLE DEPRECIATION AND LEASE CHARGES, NET | 5. VEHICLE DEPRECIATION AND LEASE CHARGES, NET | |||||||||||||||||||||||||||||||||||||||||
Depreciation of revenue earning equipment and lease charges includes the following (in millions of dollars): | Depreciation of revenue earning equipment and lease charges includes the following (in millions of dollars): | ||||||||||||||||||||||||||||||||||||||||||||
Vehicle depreciation and lease charges include the following (in thousands): | Vehicle depreciation and lease charges include the following: | ||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | Years Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||
June 30, | 2012 | 2011 | 2010 | Three Months Ended | Nine Months Ended | Year Ended December 31, | |||||||||||||||||||||||||||||||||||||||
2013 | 2012 | Depreciation of revenue earning equipment | $ | 2,165.20 | $ | 1,921.80 | $ | 1,747.00 | September 30, | September 30, | 2011 | 2010 | 2009 | ||||||||||||||||||||||||||||||||
Depreciation of revenue earning equipment | $ | 611.8 | $ | 539.5 | 2012 | 2011 | 2012 | 2011 | (In Thousands) | ||||||||||||||||||||||||||||||||||||
Adjustment of depreciation upon disposal of revenue earning equipment | (96.8 | ) | (112.2 | ) | 42.9 | Depreciation of revenue-earning vehicles and other | $ | 94,323 | $ | 80,667 | $ | 230,391 | $ | 247,112 | Depreciation of revenue-earning vehicles and other | $ | 317,844 | $ | 362,284 | $ | 461,178 | ||||||||||||||||||||||||
Adjustment of depreciation upon disposal of revenue earning equipment | 11.3 | (41.2 | ) | Net gains from disposal of revenue-earning vehicles | (5,192 | ) | (17,368 | ) | (42,023 | ) | (43,129 | ) | Net gains from disposal of revenue-earning vehicles | (46,887 | ) | (63,084 | ) | (35,086 | ) | ||||||||||||||||||||||||||
Rents paid for vehicles leased | 79.8 | 96.1 | 78.2 | ||||||||||||||||||||||||||||||||||||||||||
Rents paid for vehicles leased | 18 | 21.5 | $ | 89,131 | $ | 63,299 | $ | 188,368 | $ | 203,983 | $ | 270,957 | $ | 299,200 | $ | 426,092 | |||||||||||||||||||||||||||||
Total | $ | 2,148.20 | $ | 1,905.70 | $ | 1,868.10 | |||||||||||||||||||||||||||||||||||||||
Total | $ | 641.1 | $ | 519.8 | |||||||||||||||||||||||||||||||||||||||||
The adjustment of depreciation upon disposal of revenue earning equipment for the year ended December 31, 2012, 2011 and 2010, included net gains of $83.2 million and $98.9 million and net loss of $32.9 million, respectively, on the disposal of vehicles used in our car rental operations and net gains of $13.5 million and $13.3 million and net loss of $10.0 million, respectively, on the disposal of industrial and construction equipment used in our equipment rental operations. | Average gain on Non-Program Vehicles: | Average gain on Non-Program Vehicles: | |||||||||||||||||||||||||||||||||||||||||||
Depreciation rates are reviewed on a quarterly basis based on management's routine review of present and estimated future market conditions and their effect on residual values at the time of disposal. During the year ended December 31, 2012, depreciation rates being used to compute the provision for depreciation of revenue earning equipment were adjusted on certain vehicles in our car rental operations to reflect changes in the estimated residual values to be realized when revenue earning equipment is sold. These depreciation rate changes resulted in net decreases of $130.6 million and $13.8 million and a net increase of $19.1 million in depreciation expense for the years ended December 31, 2012, 2011 and 2010 respectively. The cumulative effect of the reduction in rates was indicative of the strong residual values experienced in the U.S. for the years ended December 31, 2012 and 2011. In 2012, 2011 and 2010, the depreciation rate changes in certain of our equipment rental operations resulted in an increase of $0.5 million, decrease of $4.4 million and increase of $3.6 million in depreciation expense, respectively. | |||||||||||||||||||||||||||||||||||||||||||||
Six Months Ended | Three Months Ended | Nine Months Ended | Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||
June 30, | September 30, | September 30, | 2011 | 2010 | 2009 | ||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2012 | 2011 | 2012 | 2011 | Number of Non-Program Vehicles sold | 39,398 | 57,100 | 50,099 | ||||||||||||||||||||||||||||||||||||
Depreciation of revenue earning equipment | $ | 1,184.80 | $ | 1,070.90 | Number of Non-Program Vehicles sold | 15,463 | 15,441 | 48,530 | 30,787 | Average gain on vehicles sold (per vehicle) | $ | 1,190 | $ | 1,105 | $ | 700 | |||||||||||||||||||||||||||||
Average gain on vehicles sold (per vehicle) | $ | 336 | $ | 1,125 | $ | 866 | $ | 1,401 | |||||||||||||||||||||||||||||||||||||
Adjustment of depreciation upon disposal of revenue earning equipment | 10 | (80.6 | ) | ||||||||||||||||||||||||||||||||||||||||||
Components of vehicle depreciation per vehicle per month: | |||||||||||||||||||||||||||||||||||||||||||||
Rents paid for vehicles leased | 33.3 | 44.6 | Components of vehicle depreciation per vehicle per month: | ||||||||||||||||||||||||||||||||||||||||||
Total | $ | 1,228.10 | $ | 1,034.90 | Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | 2011 | 2010 | 2009 | |||||||||||||||||||||||||||||||||||||||||
The adjustment of depreciation upon disposal of revenue earning equipment for the three months ended June 30, 2013 and 2012, included net losses of $17.5 million and net gains of $38.3 million, respectively, on the disposal of vehicles used in our car rental operations and gains of $6.2 million and $2.9 million, respectively, on the disposal of industrial and construction equipment used in our equipment rental operations. The adjustment of depreciation upon disposal of revenue earning equipment for the six months ended June 30, 2013 and 2012, included net losses of $20.8 million and net gains of $73.2 million, respectively, on the disposal of vehicles used in our car rental operations and net gains of $10.8 million and $7.4 million, respectively, on the disposal of industrial and construction equipment used in our equipment rental operations. | September 30, | September 30, | Average depreciable fleet (units) | 108,127 | 103,207 | 105,301 | |||||||||||||||||||||||||||||||||||||||
Depreciation rates are reviewed on a quarterly basis based on management's routine review of present and estimated future market conditions and their effect on residual values at the time of disposal. During the six months ended June 30, 2013, depreciation rates being used to compute the provision for depreciation of revenue earning equipment were adjusted on certain vehicles in our car rental operations to reflect changes in the estimated residual values to be realized when revenue earning equipment is sold. These depreciation rate changes resulted in net decreases of $14.8 million and $15.5 million in depreciation expense for the three-month and six-month periods ended June 30, 2013, respectively. Prospective changes include the impact of car sales channel diversification and acceleration of our retail sales expansion. During the three-month and six-month periods ended June 30, 2013, the depreciation rate changes in certain of our equipment rental operations resulted in a net decrease of $0.1 million and $0.0 million, respectively, in depreciation expense. | 2012 | 2011 | 2012 | 2011 | Average depreciation rate | $ | 245 | $ | 293 | $ | 365 | ||||||||||||||||||||||||||||||||||
Average depreciable fleet (units) | 120,757 | 113,719 | 113,968 | 110,125 | Average gain on vehicles sold | (36 | ) | (51 | ) | (28 | ) | ||||||||||||||||||||||||||||||||||
Average depreciation rate | $ | 260 | $ | 236 | $ | 225 | $ | 249 | |||||||||||||||||||||||||||||||||||||
Average gain on vehicles sold | (14 | ) | (50 | ) | (41 | ) | (43 | ) | Average vehicle depreciation and lease charges, net | $ | 209 | $ | 242 | $ | 337 | ||||||||||||||||||||||||||||||
Average vehicle depreciation and lease charges, net | $ | 246 | $ | 186 | $ | 184 | $ | 206 | |||||||||||||||||||||||||||||||||||||
Depreciation expense for Non-Program Vehicles, which constitute substantially all of the Company's fleet, is recorded on a straight-line basis over the life of the vehicle, based on the original acquisition cost, the projected residual value at the time of sale, and the estimated length of time the vehicle will be held in service. The Company's vehicle depreciation rates will be periodically adjusted on a prospective basis when residual value assumptions change due to changes in used vehicle market conditions. | |||||||||||||||||||||||||||||||||||||||||||||
Vehicles purchased by vehicle rental companies under programs where either the rate of depreciation or the residual value is guaranteed by the manufacturer are referred to as "Program Vehicles." Vehicles not purchased under these programs and for which rental companies therefore bear residual value risk are referred to as "Non-Program Vehicles." | |||||||||||||||||||||||||||||||||||||||||||||
Depreciation expense for Non-Program Vehicles, which constitute substantially all of the Company's fleet, is recorded on a straight-line basis over the life of the vehicle, based on the original acquisition cost, the projected residual value at the time of sale, and the estimated length of time the vehicle will be in service. The Company's vehicle depreciation rates are periodically adjusted on a prospective basis when residual value assumptions change due to changes in used vehicle market conditions. | |||||||||||||||||||||||||||||||||||||||||||||
The estimation of residual values requires the Company to make assumptions regarding the expected age and mileage of the vehicle at the time of disposal. Additionally, residual value estimates must also take into consideration overall used vehicle market conditions at the time of sale, including the impact of seasonality on vehicle residuals. The difference in residual values assumed and the proceeds realized upon sale of the vehicle is recorded as a gain or loss on the sale of the vehicle, and is recorded as a component of net vehicle depreciation and lease charges in the condensed consolidated statements of comprehensive income. | |||||||||||||||||||||||||||||||||||||||||||||
PROPERTY_AND_EQUIPMENT_DOLLAR_
PROPERTY AND EQUIPMENT - DOLLAR THRIFTY (Dollar Thrifty Automotive Group Inc.) | 12 Months Ended | |||||||
Dec. 31, 2011 | ||||||||
Dollar Thrifty Automotive Group Inc. | ||||||||
PROPERTY AND EQUIPMENT | 6. PROPERTY AND EQUIPMENT | |||||||
Major classes of property and equipment consist of the following: | ||||||||
December 31, | ||||||||
2011 | 2010 | |||||||
(In Thousands) | ||||||||
Land | $ | 12,009 | $ | 12,022 | ||||
Buildings and improvements | 21,382 | 23,325 | ||||||
Furniture and equipment | 81,014 | 81,847 | ||||||
Leasehold improvements | 128,938 | 128,742 | ||||||
Construction in progress | 5,293 | 2,824 | ||||||
248,636 | 248,760 | |||||||
Less: Accumulated depreciation and amortization | (164,358 | ) | (158,532 | ) | ||||
$ | 84,278 | $ | 90,228 | |||||
The Company did not have any charges for asset impairments in 2011. In 2010 and 2009, the Company recorded a $0.4 million and $1.6 million, respectively, non-cash charge (pretax) related primarily to the impairment of assets at its company-owned stores ($0.3 million and $0.9 million after-tax, respectively). | ||||||||
SOFTWARE_DOLLAR_THRIFTY
SOFTWARE - DOLLAR THRIFTY (Dollar Thrifty Automotive Group Inc.) | 12 Months Ended | |||||||
Dec. 31, 2011 | ||||||||
Dollar Thrifty Automotive Group Inc. | ||||||||
SOFTWARE | 7. SOFTWARE | |||||||
December 31, | ||||||||
2011 | 2010 | |||||||
(In Thousands) | ||||||||
Software | $ | 83,501 | $ | 80,144 | ||||
Less: Accumulated amortization | (61,966 | ) | (55,967 | ) | ||||
$ | 21,535 | $ | 24,177 | |||||
Software is amortized over its estimated useful life. The aggregate amortization expense recognized for software was $7.5 million, $7.3 million and $8.0 million for the years ended December 31, 2011, 2010 and 2009, respectively. The estimated aggregate amortization expense for software existing at December 31, 2011 for each of the next five years is as follows: $6.9 million, $5.3 million, $3.8 million, $2.9 million and $1.7 million. | ||||||||
The Company did not have any charges for asset impairments in 2011. In 2010 and 2009, the Company wrote off $0.7 million and $1.0 million (pretax), respectively, of software no longer in use or considered impaired ($0.3 million and $0.6 million after-tax, respectively). | ||||||||
DEBT_AND_OTHER_OBLIGATIONS_DOL3
DEBT AND OTHER OBLIGATIONS - DOLLAR THRIFTY | 6 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
DEBT AND OTHER OBLIGATIONS | Debt | Debt | 7. DEBT AND OTHER OBLIGATIONS | 8. DEBT AND OTHER OBLIGATIONS | ||||||||||||||||||||||||||||||||||||||||||||||||||
Our debt consists of the following (in millions of dollars): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Our debt consists of the following (in millions of dollars): | Debt and other obligations as of September 30, 2012 and December 31, 2011 consist of the following (in thousands): | Debt and other obligations consist of the following: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Facility | Average Interest Rate at December 31, 2012(1) | Fixed or | Maturity | December 31, | December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||
Facility | Average | Fixed or | Maturity | June 30, | December 31, | Floating | 2012 | 2011 | September 30, | December 31, | December 31, | |||||||||||||||||||||||||||||||||||||||||||
Interest Rate | Floating | 2013 | 2012 | Interest | 2012 | 2011 | 2011 | 2010 | ||||||||||||||||||||||||||||||||||||||||||||||
at June 30, | Interest | Rate | Vehicle debt and other obligations | (In Thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||
2013(1) | Rate | Corporate Debt | Asset-backed medium-term notes: | Vehicle debt and other obligations | ||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate Debt | Senior Term Facility | 3.75% | Floating | Mar-18 | $ | 2,125.50 | $ | 1,389.50 | Series 2011-2 notes (matures May 2015) | $ | 400,000 | $ | 400,000 | Asset-backed medium-term notes | ||||||||||||||||||||||||||||||||||||||||
Senior Term Facility | 3.26 | % | Floating | Mar-18 | $ | 2,114.80 | $ | 2,125.50 | Series 2011-1 notes (matures February 2015) | 500,000 | 500,000 | Series 2011-2 notes (matures May 2015) | $ | 400,000 | $ | — | ||||||||||||||||||||||||||||||||||||||
Senior ABL Facility | 2.89 | % | Floating | Mar-16 | 1,005.80 | 195 | Senior ABL Facility | 2.47% | Floating | Mar-16 | 195 | — | Series 2007-1 notes (matured July 2012) | — | 500,000 | Series 2011-1 notes (matures February 2015) | 500,000 | — | ||||||||||||||||||||||||||||||||||||
Senior Notes(2) | 6.58 | % | Fixed | 4/2018 - 10/2022 | 3,900.00 | 3,650.00 | Series 2007-1 notes (matures July 2012) | 500,000 | 500,000 | |||||||||||||||||||||||||||||||||||||||||||||
Promissory Notes | 6.96 | % | Fixed | 6/2012 - 1/2028 | 48.7 | 48.7 | Senior Notes(2) | 6.74% | Fixed | 10/2018–10/2022 | 3,650.00 | 2,638.60 | 900,000 | 1,400,000 | Series 2006-1 notes (matured May 2011) | — | 500,000 | |||||||||||||||||||||||||||||||||||||
Other Corporate Debt | 3.51 | % | Floating | Various | 58.5 | 88.7 | Discounts on asset-backed medium-term notes | (32 | ) | (45 | ) | |||||||||||||||||||||||||||||||||||||||||||
Unamortized Net Premium (Corporate) | 3.2 | 3.3 | Promissory Notes | 6.96% | Fixed | 6/2012–1/2028 | 48.7 | 224.7 | 1,400,000 | 1,000,000 | ||||||||||||||||||||||||||||||||||||||||||||
Asset-backed medium-term notes, net of discount | 899,968 | 1,399,955 | Discounts on asset-backed medium-term notes | (45 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Total Corporate Debt | 7,131.00 | 6,111.20 | Other Corporate Debt | 4.40% | Floating | Various | 88.7 | 49.6 | Series 2010-3 variable funding notes (matures December 2013) | 510,000 | — | |||||||||||||||||||||||||||||||||||||||||||
CAD Series 2012-1 notes (Canadian fleet financing) (matures August 2014) | 71,169 | — | Asset-backed medium-term notes, net of discount | 1,399,955 | 1,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||
Fleet Debt | Unamortized Net (Discount) Premium (Corporate) | 3.3 | (6.9 | ) | Series 2010-1 variable funding note (terminated October 2011) | — | 200,000 | |||||||||||||||||||||||||||||||||||||||||||||||
HVF U.S. ABS Program | Total debt and other obligations | $ | 1,481,137 | $ | 1,399,955 | CAD Series 2010-1 note (Canadian fleet financing) (terminated April 2011) | — | 49,118 | ||||||||||||||||||||||||||||||||||||||||||||||
HVF U.S. Fleet Variable Funding Notes: | Total Corporate Debt | 6,111.20 | 4,295.50 | |||||||||||||||||||||||||||||||||||||||||||||||||||
HVF Series 2009-1(3) | 1.04 | % | Floating | Mar-14 | 2,590.00 | 2,350.00 | Total vehicle debt and other obligations | 1,399,955 | 1,249,118 | |||||||||||||||||||||||||||||||||||||||||||||
Fleet Debt | Asset-Backed Medium-Term Notes | |||||||||||||||||||||||||||||||||||||||||||||||||||||
2,590.00 | 2,350.00 | HVF U.S. ABS Program | Non-vehicle debt | |||||||||||||||||||||||||||||||||||||||||||||||||||
HVF U.S. Fleet Variable Funding Notes: | Asset-backed medium-term notes were issued by RCFC in October 2011 (the "Series 2011-2 notes"), July 2011 (the "Series 2011-1 notes"), and May 2007 (the "Series 2007-1 notes"). | Term Loan | — | 148,125 | ||||||||||||||||||||||||||||||||||||||||||||||||||
HVF U.S. Fleet Medium Term Notes | HVF Series 2009-1(3) | 1.11% | Floating | Mar-14 | 2,350.00 | 1,000.00 | ||||||||||||||||||||||||||||||||||||||||||||||||
HVF Series 2009-2(3) | 5.37 | % | Fixed | 3/2013 - 3/2015 | 807.5 | 1,095.90 | The $400 million of Series 2011-2 notes were issued at a fixed interest rate of 3.21% and will be repaid monthly over a six-month period, beginning in December 2014, with an expected final maturity date of May 2015. At September 30, 2012, the Series 2011-2 notes required compliance with a maximum corporate leverage ratio of 3.0 to 1.0, a minimum corporate interest coverage ratio of 2.0 to 1.0 and a minimum corporate EBITDA requirement of $75 million, consistent with the terms of the Company's Revolving Credit Facility (hereinafter defined). | Total non-vehicle debt | — | 148,125 | ||||||||||||||||||||||||||||||||||||||||||||
HVF Series 2010-1(3) | 3.77 | % | Fixed | 2/2014 - 2/2018 | 749.8 | 749.8 | HVF Series 2010-2(3) | N/A | Floating | Mar-13 | — | 170 | ||||||||||||||||||||||||||||||||||||||||||
HVF Series 2011-1(3) | 2.86 | % | Fixed | 3/2015 - 3/2017 | 598 | 598 | The Series 2011-1 notes are comprised of $420 million principal amount of Series 2011-1 Class A Notes with a fixed interest rate of 2.51% and $80 million principal amount of Series 2011-1 Class B Notes with a fixed interest rate of 4.38%. On a blended basis, the average annual coupon on the combined $500 million principal amount of the Series 2011-1 notes is approximately 2.81%. The Series 2011-1 notes will be repaid monthly over a six-month period, beginning in September 2014, with an expected final maturity date in February 2015. | Total debt and other obligations | $ | 1,399,955 | $ | 1,397,243 | ||||||||||||||||||||||||||||||||||||||||||
HVF Series 2013-1(3) | 1.68 | % | Fixed | 8/2016 - 8/2018 | 950 | — | HVF Series 2011-2(3) | N/A | Floating | Apr-12 | — | 175 | ||||||||||||||||||||||||||||||||||||||||||
The Series 2007-1 notes began scheduled amortization in February 2012 and were paid in full in July 2012. During the three and nine months ended September 30, 2012, $83.3 million and $500.0 million of principal payments were made, respectively. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
3,105.30 | 2,443.70 | 2,350.00 | 1,345.00 | Asset-Backed Medium-Term Notes | ||||||||||||||||||||||||||||||||||||||||||||||||||
Variable Funding Notes | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
RCFC U.S. ABS Program | HVF U.S. Fleet Medium Term Notes | Asset-backed medium-term notes were issued by RCFC in October 2011 (the "Series 2011-2 notes"), July 2011 (the "Series 2011-1 notes"), May 2007 (the "Series 2007-1 notes") and March 2006 (the "Series 2006-1 notes"). | ||||||||||||||||||||||||||||||||||||||||||||||||||||
RCFC U.S. Fleet Variable Funding Notes | HVF Series 2009-2(3) | 5.11% | Fixed | 3/2013–3/2015 | 1,095.90 | 1,384.30 | The Company had drawn $510 million of the $600 million Series 2010-3 variable funding note ("VFN") at September 30, 2012. At the end of the revolving period, the then-outstanding principal amount of the Series 2010-3 VFN will be repaid monthly over a three-month period, beginning in October 2013, with the final payment due in December 2013. The facility bears interest at a spread of 130 basis points above each funding institution's cost of funds, which may be based on either the weighted-average commercial paper rate, a floating one-month LIBOR rate or a Eurodollar rate. The Series 2010-3 VFN had an interest rate of 1.57% at September 30, 2012. The Series 2010-3 VFN also has a facility fee commitment rate of up to 0.8% per annum on any unused portion of the facility. The Series 2010-3 VFN requires compliance with a maximum corporate leverage ratio of 3.0 to 1.0, a minimum corporate interest coverage ratio of 2.0 to 1.0 and a minimum corporate EBITDA requirement of $75 million, consistent with the terms of the Company's Revolving Credit Facility. | |||||||||||||||||||||||||||||||||||||||||||||||
RCFC Series 2010-3 Notes(3)(4) | 1.03 | % | Floating | Dec-13 | 540 | 519 | The Series 2011-2 notes of $400 million were issued at a fixed interest rate of 3.21% and will be repaid monthly over a six-month period, beginning in December 2014, with an expected final maturity date of May 2015. At December 31, 2011, the Series 2011-2 notes required compliance with a maximum leverage ratio of 2.25 to 1.00 and a minimum interest coverage ratio of 2.00 to 1.00, consistent with the terms of the Company's Senior Secured Credit Facilities. These financial covenants were modified in connection with the Company's entry into the New Revolving Credit Facility. See below for further discussion. | |||||||||||||||||||||||||||||||||||||||||||||||
RCFC U.S. Fleet Medium Term Notes | HVF Series 2010-1(3) | 3.77% | Fixed | 2/2014–2/2018 | 749.8 | 749.8 | Canadian Fleet Financing | |||||||||||||||||||||||||||||||||||||||||||||||
RCFC Series 2011-1 Notes(3)(4) | 2.81 | % | Fixed | Feb-15 | 500 | 500 | The Series 2011-1 notes are comprised of $420 million principal amount of Series 2011-1 Class A Notes with a fixed interest rate of 2.51% and $80 million principal amount of Series 2011-1 Class B Notes with a fixed interest rate of 4.38%. On a blended basis, the average annual coupon on the combined $500 million principal amount of the Series 2011-1 notes is approximately 2.81%. The Series 2011-1 notes will be repaid monthly over a six-month period, beginning in September 2014, with an expected final maturity date in February 2015. | |||||||||||||||||||||||||||||||||||||||||||||||
RCFC Series 2011-2 Notes(3)(4) | 3.21 | % | Fixed | May-15 | 400 | 400 | HVF Series 2011-1(3) | 2.86% | Fixed | 3/2015–3/2017 | 598 | 598 | On March 9, 2012, the Company completed a CAD Series 2012-1 $150 million Canadian fleet securitization program (the "CAD Series 2012-1 notes"). This program has a term of two years and requires a program fee of 150 basis points above the one-month rate for Canadian dollar denominated bankers' acceptances or weighted average commercial paper rates, as well as a utilization fee of 65 basis points on the unused CAD Series 2012-1 amount. At September 30, 2012, CAD $70 million (US $71.2 million) of the CAD Series 2012-1 notes had been drawn. The CAD Series 2012-1 notes had an interest rate of 2.69% at September 30, 2012. | |||||||||||||||||||||||||||||||||||||||||
The Series 2007-1 notes will begin scheduled amortization in February 2012, and will amortize over a six-month period with an expected final maturity date in July 2012. The Series 2007-1 notes are insured by Financial Guaranty Insurance Company ("FGIC"). The Series 2007-1 notes are floating rate notes that were previously effectively converted to fixed rate notes through entry into swap agreements. At December 31, 2011, the Series 2007-1 notes had an interest rate of 0.4%. On December 28, 2011, the Company paid $8.8 million to terminate its 2007 swap agreements. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
1,440.00 | 1,419.00 | 2,443.70 | 2,732.10 | Revolving Credit Facility | ||||||||||||||||||||||||||||||||||||||||||||||||||
The Series 2006-1 notes began scheduled amortization in December 2010 and were paid in full in May 2011. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Donlen ABS Program | On February 16, 2012, the Company terminated the existing senior secured credit facility and replaced it with a new $450 million revolving credit facility (the "Revolving Credit Facility") that expires in February 2017. Pricing under the Revolving Credit Facility is grid-based with a spread above LIBOR that will range from 300 basis points to 350 basis points, based upon usage of the facility. Commitment fees under the Revolving Credit Facility will equal 50 basis points on unused capacity. Under the Revolving Credit Facility, the Company is subject to a maximum corporate leverage ratio of 3.0 to 1.0, a minimum corporate interest coverage ratio of 2.0 to 1.0 and a minimum corporate EBITDA requirement of $75 million. In addition, the Revolving Credit Facility contains various restrictive covenants including, among others, limitations on the Company's and its subsidiaries' ability to incur additional indebtedness, make loans, acquisitions or other investments, grant liens on their respective property, dispose of assets, pay dividends or conduct stock repurchases, make capital expenditures or engage in certain transactions with affiliates. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Donlen GN II Variable Funding Notes(5) | 1 | % | Floating | Dec-13 | 943.8 | 899.3 | RCFC U.S. ABS Program | The assets of RCFC, including revenue-earning vehicles related to the asset-backed medium-term notes, restricted cash and investments, and certain receivables related to revenue-earning vehicles, are available to satisfy the claims of its creditors. Dollar and Thrifty lease vehicles from RCFC under the terms of certain master lease and servicing agreements. The asset-backed note indentures also provide for additional credit enhancement through over collateralization of the vehicle fleet, cash or letters of credit and/or maintenance of a liquidity reserve. RCFC is in compliance with the terms of the indentures. | ||||||||||||||||||||||||||||||||||||||||||||||
RCFC U.S. Fleet Variable Funding Notes | Under the Revolving Credit Facility, the Company has the ability (subject to specified conditions and limitations), among other things, to incur up to $400 million of unsecured indebtedness; to enter into permitted acquisitions of up to $250 million in the aggregate during the term of the Revolving Credit Facility and to incur financing and assume indebtedness in connection therewith; to make investments in the Company's U.S. special-purpose financing entities (including RCFC) and its Canadian special-purpose financing entities, in aggregate amounts at any time outstanding of up to $750 million and $150 million, respectively; and to make dividend, stock repurchase and other restricted payments in an amount up to $300 million, plus 50% of cumulative adjusted net income (or minus 100% of cumulative adjusted net loss, as applicable) for the period beginning January 1, 2012 and ending on the last day of the fiscal quarter immediately preceding the restricted payment. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Fleet Debt | RCFC Series 2010-3 Notes(3)(4) | 1.06% | Floating | Dec-13 | 519 | — | Variable Funding Notes | |||||||||||||||||||||||||||||||||||||||||||||||
U.S. Fleet Financing Facility | 2.95 | % | Floating | Sep-15 | 171 | 166 | The Company had letters of credit outstanding under the Revolving Credit Facility of $0.1 million for U.S. enhancement and $40.8 million in general purpose letters of credit with a remaining available capacity of $409.1 million at September 30, 2012. | |||||||||||||||||||||||||||||||||||||||||||||||
European Revolving Credit Facility | 2.67 | % | Floating | Jun-15 | 357.9 | 185.3 | RCFC U.S. Fleet Medium Term Notes | The Series 2010-1 variable funding note ("VFN") of $200 million and the Series 2010-2 VFN of $300 million were both terminated in October of 2011. | ||||||||||||||||||||||||||||||||||||||||||||||
European Fleet Notes | 8.5 | % | Fixed | Jul-15 | 520.5 | 529.4 | RCFC Series 2011-1 Notes(3)(4) | 2.81% | Fixed | Feb-15 | 500 | — | Covenant Compliance | |||||||||||||||||||||||||||||||||||||||||
European Securitization(3) | 2.5 | % | Floating | Jul-14 | 363 | 242.2 | On September 29, 2011, RCFC renewed the Series 2010-3 VFN, increasing the capacity from $450 million to $600 million and extending the revolving period from the previous 364-day structure to two years. The facility bears interest at a spread of 130 basis points above each funding institution's cost of funds, which may be based on either the weighted-average commercial paper rate, a floating one-month LIBOR rate or a Eurodollar rate. The Series 2010-3 VFN was undrawn at December 31, 2011. The Series 2010-3 VFN has a facility fee commitment rate of up to 0.8% per annum on any unused portion of the facility. At the end of the revolving period, the then-outstanding principal amount of the Series 2010-3 VFN will be repaid monthly over a three-month period, beginning in October 2013, with the final payment in December 2013. At December 31, 2011, the Series 2010-3 VFN required compliance with a maximum leverage ratio of 2.25 to 1.00 and a minimum interest coverage ratio of 2.00 to 1.00, consistent with the terms of the Company's Senior Secured Credit Facilities. These financial covenants were modified in connection with the Company's entry into the New Revolving Credit Facility. See below for further discussion. | |||||||||||||||||||||||||||||||||||||||||||||||
Hertz-Sponsored Canadian Securitization(3) | 2.14 | % | Floating | Mar-14 | 124.2 | 100.5 | RCFC Series 2011-2 Notes(3)(4) | 3.21% | Fixed | May-15 | 400 | — | As of September 30, 2012, the Company is in compliance with all covenants under its various financing arrangements. | |||||||||||||||||||||||||||||||||||||||||
Dollar Thrifty Sponsored Canadian Securitization(3)(4) | 2.13 | % | Floating | Aug-14 | 76.4 | 55.3 | Canadian Fleet Financing | |||||||||||||||||||||||||||||||||||||||||||||||
Australian Securitization(3)(6) | 4.17 | % | Floating | Dec-14 | 119.7 | 148.9 | 1,419.00 | — | ||||||||||||||||||||||||||||||||||||||||||||||
Brazilian Fleet Financing Facility | 13.89 | % | Floating | Oct-13 | 13 | 14 | On April 18, 2011, due to the Company's excess cash position and the cost differential between the interest rate on its Canadian fleet financing and interest rates earned on investment of excess cash, the Company fully repaid the outstanding balance of CAD $54.0 million (US $56.0 million) and terminated the CAD Series 2010 Program. During the remainder of 2011, the Company funded any Canadian fleet needs with cash on hand and cash generated from operations. Direct investments in the Canadian fleet funded from cash and cash equivalents totaled CAD $64.9 million (US $63.5 million) as of December 31, 2011. | |||||||||||||||||||||||||||||||||||||||||||||||
Capitalized Leases | 4.08 | % | Floating | Various | 429.6 | 337.6 | Donlen ABS Program | |||||||||||||||||||||||||||||||||||||||||||||||
Unamortized Discount (Fleet) | 8.8 | 12.1 | Donlen GN II Variable Funding Notes(3) | 1.15% | Floating | Dec-13 | 899.3 | 811.2 | Senior Secured Credit Facilities | |||||||||||||||||||||||||||||||||||||||||||||
2,184.10 | 1,791.30 | Other Fleet Debt | At December 31, 2011, the senior secured credit facilities (the "Senior Secured Credit Facilities"), which were refinanced and terminated in February 2012, were comprised of a $231.3 million revolving credit facility (the "Revolving Credit Facility") as the term loan portion of the Senior Secured Credit Facilities was repaid at $143.1 million and terminated in August 2011. | |||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Fleet Financing Facility | 3.27% | Floating | Sep-15 | 166 | 136 | |||||||||||||||||||||||||||||||||||||||||||||||||
Total Fleet Debt | 10,263.20 | 8,903.30 | The Company had letters of credit outstanding under the Revolving Credit Facility of $144.3 million for U.S. enhancement and $54.7 million in general purpose enhancements, with remaining available capacity of $32.3 million at December 31, 2011. | |||||||||||||||||||||||||||||||||||||||||||||||||||
European Revolving Credit Facility | 2.86% | Floating | Jun-15 | 185.3 | 200.6 | |||||||||||||||||||||||||||||||||||||||||||||||||
Total Debt | $ | 17,394.20 | $ | 15,014.50 | On February 16, 2012, the Company terminated the existing Senior Secured Credit Facilities and replaced it with a new $450 million revolving credit facility (the "New Revolving Credit Facility") that expires in February 2017. Pricing under the New Revolving Credit Facility is grid based with a spread above LIBOR that will range from 300 basis points to 350 basis points, based upon usage of the facility. Commitment fees under the New Revolving Credit Facility will equal 50 basis points on unused capacity. Under the New Revolving Credit Facility, the Company is subject to a maximum corporate leverage ratio of 3.0 to 1.0, a minimum corporate interest coverage ratio of 2.0 to 1.0, and a minimum corporate EBITDA requirement of $75 million. In addition, the New Revolving Credit Facility contains covenants restricting its ability to undertake certain activities, including, among others, restrictions on the Company and its subsidiaries' ability to incur additional indebtedness, make loans, acquisitions or other investments, grant liens on its property, dispose of assets, pay dividends or conduct stock repurchases, make capital expenditures or engage in certain transactions with affiliates. | |||||||||||||||||||||||||||||||||||||||||||||||||
European Fleet Notes | 8.50% | Fixed | Jul-15 | 529.4 | 517.7 | |||||||||||||||||||||||||||||||||||||||||||||||||
Under the New Revolving Credit Facility, certain restrictions were relaxed or extended from the Senior Secured Credit Facilities, including the Company's ability, subject to certain limitations, to make dividend, share repurchase and other restricted payments under the New Revolving Credit Facility, in an amount up to $300 million, plus 50% of cumulative adjusted net income (or minus 100% of cumulative adjusted net loss, as applicable) for the period beginning January 1, 2012 and ending on the last day of the fiscal quarter immediately preceding the restricted payment. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
European Securitization(3) | 2.48% | Floating | Jul-14 | 242.2 | 256.2 | |||||||||||||||||||||||||||||||||||||||||||||||||
Note: | Covenant Compliance | |||||||||||||||||||||||||||||||||||||||||||||||||||||
For further information on the definitions and terms of our debt, see Note 5 of the Notes to our audited annual consolidated financial statements included in our Form 10-K under the caption "Item 8—Financial Statements and Supplementary Data." | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
The Company was in compliance with all covenants under its financing arrangements as of December 31, 2011. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
-1 | Facility | Average Interest Rate at December 31, 2012(1) | Fixed or | Maturity | December 31, | December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||
As applicable, reference is to the June 30, 2013 weighted average interest rate (weighted by principal balance). | Floating | 2012 | 2011 | During 2011, the Company paid $14.8 million in financing issuance costs primarily related to the issuance of its Series 2011-1 notes and the renewal of the Series 2010-3 VFN. | ||||||||||||||||||||||||||||||||||||||||||||||||||
Interest | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
-2 | Rate | Expected maturities of debt and other obligations outstanding at December 31, 2011 are as follows: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
References to our "Senior Notes" include the series of Hertz's unsecured senior notes set forth in the table below. As of June 30, 2013 and December 31, 2012, the outstanding principal amount for each such series of the Senior Notes is as specified below. | Hertz-Sponsored Canadian Securitization(3) | 2.16% | Floating | Jun-13 | 100.5 | 68.3 | ||||||||||||||||||||||||||||||||||||||||||||||||
Dollar Thrifty Sponsored Canadian Securitization(3)(4) | 2.13% | Floating | Aug-14 | 55.3 | — | 2012 | 2013 | 2014 | 2015 | Thereafter | ||||||||||||||||||||||||||||||||||||||||||||
Outstanding Principal | (In Thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | Australian Securitization(3) | 4.61% | Floating | Dec-14 | 148.9 | 169.3 | ||||||||||||||||||||||||||||||||||||||||||||||||
Senior Notes | June 30, | December 31, | Asset-backed medium-term notes | $ | 500,000 | $ | — | $ | 400,000 | $ | 500,000 | $ | — | |||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | Brazilian Fleet Financing Facility | 13.07% | Floating | Feb-13 | 14 | 23.1 | |||||||||||||||||||||||||||||||||||||||||||||||
4.25% Senior Notes due April 2018 | $ | 250 | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
7.50% Senior Notes due October 2018 | 700 | 700 | Capitalized Leases | 4.40% | Floating | Various | 337.6 | 363.7 | ||||||||||||||||||||||||||||||||||||||||||||||
6.75% Senior Notes due April 2019 | 1,250.00 | 1,250.00 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
5.875% Senior Notes due October 2020 | 700 | 700 | Unamortized Net (Discount) Premium (Fleet) | 12.1 | (10.9 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
7.375% Senior Notes due January 2021 | 500 | 500 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
6.25% Senior Notes due October 2022 | 500 | 500 | 1,791.30 | 1,724.00 | ||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 3,900.00 | $ | 3,650.00 | Total Fleet Debt | 8,903.30 | 6,612.30 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total Debt | $ | 15,014.50 | $ | 10,907.80 | ||||||||||||||||||||||||||||||||||||||||||||||||||
-3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Maturity reference is to the "expected final maturity date" as opposed to the subsequent "legal maturity date." The expected final maturity date is the date by which Hertz and investors in the relevant indebtedness expect the relevant indebtedness to be repaid. The legal final maturity date is the date on which the relevant indebtedness is legally due and payable. | _______________________________________________________________________________ | |||||||||||||||||||||||||||||||||||||||||||||||||||||
-4 | -1 | As applicable, reference is to the December 31, 2012 weighted average interest rate (weighted by principal balance). | ||||||||||||||||||||||||||||||||||||||||||||||||||||
RCFC U.S. ABS Program and the Dollar Thrifty-Sponsored Canadian Securitization represent fleet debt acquired in connection with the Dollar Thrifty acquisition on November 19, 2012. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
-2 | References to our "Senior Notes" include the series of Hertz's unsecured senior notes set forth in the table below. As of December 31, 2012 and December 31, 2011, the outstanding principal amount for each such series of the Senior Notes is also specified below. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Maturities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
The aggregate amounts of maturities of debt for each of the twelve-month periods ending June 30 (in millions of dollars) are as follows: | Outstanding Principal (in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior Notes | December 31, 2012 | 31-Dec-11 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
8.875% Senior Notes due January 2014 | $ | — | $ | 162.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | $ | 7,028.30 | (including $6,741.1 of other short-term borrowings*) | |||||||||||||||||||||||||||||||||||||||||||||||||||
2015 | $ | 2,124.40 | 7.875% Senior Notes due January 2014 | — | 276.3 | -€ 213.50 | ||||||||||||||||||||||||||||||||||||||||||||||||
2016 | $ | 1,140.00 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
2017 | $ | 366.5 | 7.50% Senior Notes due October 2018 | 700 | 700 | |||||||||||||||||||||||||||||||||||||||||||||||||
2018 | $ | 2,819.10 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
After 2018 | $ | 3,903.90 | 6.75% Senior Notes due April 2019 | 1,250.00 | 1,000.00 | |||||||||||||||||||||||||||||||||||||||||||||||||
5.875% Senior Notes due October 2020 | 700 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
* | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Our short-term borrowings as of June 30, 2013 include, among other items, the amounts outstanding under the Senior ABL Facility, HVF U.S. Fleet Variable Funding Notes, RCFC U.S. Fleet Variable Funding Notes, Donlen GN II Variable Funding Notes, U.S. Fleet Financing Facility, European Revolving Credit Facility, European Securitization, Hertz-Sponsored Canadian Securitization, Dollar Thrifty-Sponsored Canadian Securitization, Australian Securitization, Brazilian Fleet Financing Facility and Capitalized Leases. These amounts are reflected as short-term borrowings, regardless of the facility maturity date, as these facilities are revolving in nature and/or the outstanding borrowings have maturities of three months or less. As of June 30, 2013, short-term borrowings had a weighted average interest rate of 1.8%. | 7.375% Senior Notes due January 2021 | 500 | 500 | |||||||||||||||||||||||||||||||||||||||||||||||||||
We are highly leveraged and a substantial portion of our liquidity needs arise from debt service on our indebtedness and from the funding of our costs of operations and capital expenditures. We believe that cash generated from operations and cash received on the disposal of vehicles and equipment, together with amounts available under various liquidity facilities will be adequate to permit us to meet our debt maturities over the next twelve months. | 6.25% Senior Notes due October 2022 | 500 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Letters of Credit | $ | 3,650.00 | $ | 2,638.60 | ||||||||||||||||||||||||||||||||||||||||||||||||||
As of June 30, 2013, there were outstanding standby letters of credit totaling $664.4 million. Of this amount, $638.0 million was issued under the Senior Credit Facilities. As of June 30, 2013, none of these letters of credit have been drawn upon. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2013 Events | -3 | Maturity reference is to the "expected final maturity date" as opposed to the subsequent "legal maturity date." The expected final maturity date is the date by which Hertz and investors in the relevant indebtedness expect the relevant indebtedness to be repaid. The legal final maturity date is the date on which the relevant indebtedness is legally due and payable. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
In January 2013, Hertz Vehicle Financing LLC, or "HVF," an insolvency remote, direct, wholly-owned, special purpose subsidiary of Hertz, completed the issuance of $950.0 million in aggregate principal amount of three year and five year Series 2013-1 Rental Car Asset Backed Notes, Class A and Class B. The $282.75 million of three year Class A notes carry a 1.12% coupon, the $42.25 million of three year Class B notes carry a 1.86% coupon, the $543.75 million of five year Class A notes carry a 1.83% coupon, and the $81.25 million of five year Class B notes carry a 2.48% coupon. The three year notes and five year notes have expected final payment dates in August 2016 and August 2018, respectively. The Class B notes are subordinated to the Class A notes. | -4 | RCFC U.S. ABS Program and the Dollar Thrifty-Sponsored Canadian Securitization represent fleet debt acquired in connection with the Dollar Thrifty acquisition on November 19, 2012. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Maturities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
The net proceeds from the sale of HVF's Series 2013-1 Rental Car Asset Backed Notes was, to the extent permitted by the applicable agreements, (i) used to pay the purchase price of vehicles acquired by HVF pursuant to HVF's U.S. ABS Program (as defined herein), (ii) used to pay the principal amount of other HVF U.S. ABS Program indebtedness that is then permitted or required to be paid or (iii) released to HVF to be distributed to Hertz or otherwise used by HVF for general purposes. | The aggregate amounts of maturities of debt for each of the twelve-month periods ending December 31 (in millions of dollars) are as follows: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
In February 2013, Hertz caused its Brazilian operating subsidiary to amend the Brazilian Fleet Financing Facility to extend the maturity date from February 2013 to October 2013. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2013 | $ | 5,744.10 | (including $5,244.0 of other short-term borrowings*) | |||||||||||||||||||||||||||||||||||||||||||||||||||
In March 2013, Hertz issued $250 million in aggregate principal amount of 4.25% Senior Notes due 2018. The proceeds of this March 2013 offering were used by us to replenish a portion of our liquidity, after having dividended $467.2 million in available liquidity to Hertz Holdings, which Hertz Holdings used to repurchase 23,200,000 shares of its common stock in March 2013. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | $ | 1,122.10 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
In April 2013, Hertz entered into an Amendment No. 2, or "Amendment No. 2," to the Senior Term Facility, primarily to reduce the interest rate applicable to a portion of the outstanding term loans under the Senior Term Facility. Prior to Amendment No. 2, approximately $1,372.0 million of tranche B term loans, or "Tranche B Term Loans", under the Senior Term Facility bore interest at a floating rate measured by reference to, at Hertz's option, either (i) an adjusted London inter-bank offered rate not less than 1.00 percent plus a borrowing margin of 2.75 percent per annum or (ii) an alternate base rate plus a borrowing margin of 1.75 percent per annum. Pursuant to Amendment No. 2, certain of the existing lenders under the Senior Term Facility converted their existing Tranche B Term Loans into a new tranche of tranche B-2 term loans, or the "Tranche B-2 Term Loans", in an aggregate principal amount, along with new loans advanced by certain new lenders, of approximately $1,372.0 million. The proceeds of Tranche B-2 Term Loans advanced by the new lenders were used to prepay in full all of the Tranche B Term Loans that were not converted into Tranche B-2 Term Loans. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2015 | $ | 1,894.10 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
The Tranche B-2 Term Loans bear interest at a floating rate measured by reference to, at Hertz's option, either (i) an adjusted London inter-bank offered rate not less than 0.75 percent plus a borrowing margin of 2.25 percent per annum or (ii) an alternate base rate plus a borrowing margin of 1.25 percent per annum. The terms and conditions of the new Tranche B-2 Term Loans with respect to maturity, collateral, and covenants are otherwise unchanged compared to the Tranche B Term Loans. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2016 | $ | 267.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
In May 2013, the U.K. Leveraged Financing was amended to provide for additional amounts available under the U.K. Leveraged Financing of £25 million (the equivalent of $38.3 million as of June 30, 2013) for a commitment period running from May 30, 2013 to October 30, 2013. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2017 | $ | 219.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
In May 2013, HVF amended the HVF Series 2009-1 Notes to permit aggregate maximum borrowings of $2,738.8 million (subject to borrowing base availability). | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
After 2017 | $ | 5,752.50 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
In June 2013, Hertz Holdings Netherlands B.V., an indirect wholly-owned subsidiary of Hertz organized under the laws of Netherlands, or "HHN BV," amended the European Revolving Credit Facility to provide for aggregate maximum borrowings of an additional €100 million (the equivalent of $130.1 million as of June 30, 2013), subject to borrowing base availability, for a commitment period running from June 12, 2013 to December 16, 2013. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
_______________________________________________________________________________ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
In the second quarter of 2013, HC Limited Partnership amended the Hertz-Sponsored Canadian Securitization to extend the maturity from June 2013 to March 2014. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
For subsequent events relating to our indebtedness, see Note 18—Subsequent Events. | * | Our short-term borrowings as of December 31, 2012 include, among other items, the amounts outstanding under the Senior ABL Facility, HVF U.S. Fleet Variable Funding Notes, RCFC U.S. Fleet Variable Funding Notes, Donlen GN II Variable Funding Notes, U.S. Fleet Financing Facility, European Revolving Credit Facility, European Securitization, Hertz-Sponsored Canadian Securitization, Dollar Thrifty-Sponsored Canadian Securitization, Australian Securitization, Brazilian Fleet Financing Facility and Capitalized Leases. These amounts are reflected as short-term borrowings, regardless of the facility maturity date, as these facilities are revolving in nature and/or the outstanding borrowings have maturities of three months or less. As of December 31, 2012, short-term borrowings had a weighted average interest rate of 1.8%. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
We are highly leveraged and a substantial portion of our liquidity needs arise from debt service on our indebtedness and from the funding of our costs of operations, acquisitions and capital expenditures. We believe that cash generated from operations and cash received on the disposal of vehicles and equipment, together with amounts available under various liquidity facilities will be adequate to permit us to meet our debt maturities over the next twelve months. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Registration Rights | Letters of Credit | |||||||||||||||||||||||||||||||||||||||||||||||||||||
As of December 31, 2012, there were outstanding standby letters of credit totaling $681.4 million. Of this amount, $626.6 million was issued under the Senior Credit Facilities. As of December 31, 2012, none of these letters of credit have been drawn upon. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pursuant to the terms of the exchange and registration rights agreement entered into in connection with the issuance of $250 million in aggregate principal amount of the 4.25% Senior Notes due 2018 in March 2013, Hertz agreed to file a registration statement under the Securities Act of 1933, as amended, to permit either the exchange of such notes for registered notes or, in the alternative, the registered resale of such notes. Hertz's failure to meet its obligations under the exchange and registration rights agreement, including by failing to have the registration statement become effective by March 2014 or failing to complete the exchange offer by April 2014, will result in Hertz incurring special interest on such notes at a per annum rate of 0.25% for the first 90 days of any period where any such failure has occurred and is continuing, which rate will be increased by an additional 0.25% during each subsequent 90 day period, up to a maximum of 0.50%. A registration statement on Form S-4 was filed with the SEC on June 26, 2013 covering the exchange of such notes. We do not believe the special interest obligation is probable, and as such, we have not recorded any amounts with respect to this registration payment arrangement. | Acquisition Bridge Financing | |||||||||||||||||||||||||||||||||||||||||||||||||||||
In August 2012 in conjunction with signing of the merger agreement with Dollar Thrifty, Hertz obtained $1,950.0 million in financing commitments for use in acquiring Dollar Thrifty. In October 2012 after having secured permanent financing for the Dollar Thrifty acquisition, Hertz terminated these commitments having never drawn upon them. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Guarantees and Security | CORPORATE DEBT | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior Credit Facilities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
In February 2013 and March 2013, we added Dollar Thrifty and certain of its subsidiaries as guarantors under certain of our debt instruments and credit facilities including the Senior Term Facility and the Senior Notes. There have been no material changes to the guarantees and security provisions of the debt instruments and credit facilities under which our indebtedness as of June 30, 2013 has been issued from the terms as disclosed in our Form 10-K. | Senior Term Facility: In March 2011, Hertz entered into a credit agreement that provides a $1,400.0 million term loan, or as amended, the ‘‘Senior Term Facility.’’ In addition, the Senior Term Facility includes a separate incremental pre-funded synthetic letter of credit facility in an aggregate principal amount of $200.0 million. Subject to the satisfaction of certain conditions and limitations, the Senior Term Facility allows for the incurrence of incremental term and/or revolving loans. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
On October 9, 2012, Hertz entered into an Incremental Commitment Amendment to the Senior Term Facility which provided for commitments for the Incremental Term Loans of $750.0 million under the Senior Term Facility. Contemporaneously with the consummation of the Dollar Thrifty acquisition, the Incremental Term Loans were fully drawn and the proceeds therefrom were used to: (i) finance a portion of the consideration in connection with the Dollar Thrifty acquisition, (ii) pay off obligations of Dollar Thrifty and its subsidiaries in connection with the Dollar Thrifty acquisition and (iii) pay fees and other transaction expenses in connection with the Dollar Thrifty acquisition and the related financing transactions. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Covenant Compliance | The Incremental Term Loans are secured by the same collateral and guaranteed by the same guarantors as the previously existing term loans under the Senior Term Facility. The Incremental Term Loans will, like the previously existing term loans under the Senior Term Facility, mature on March 11, 2018 and the interest rate per annum applicable thereto will be the same as such previously existing term loans. The other terms of the Incremental Term Loans are also generally the same. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior ABL Facility: In March 2011, Hertz, HERC, and certain other of our subsidiaries entered into a credit agreement that provides for aggregate maximum borrowings of $1,800.0 million (subject to borrowing base availability) on a revolving basis under an asset‑based revolving credit facility. We refer to this facility, as amended, from time to time, as the “Senior ABL Facility.” Up to $1,500.0 million of the Senior ABL Facility is available for the issuance of letters of credit, subject to certain conditions including issuing lender participation. Subject to the satisfaction of certain conditions and limitations, the Senior ABL Facility allows for the addition of incremental revolving and/or term loan commitments. In addition, the Senior ABL Facility permits Hertz to increase the amount of commitments under the Senior ABL Facility with the consent of each lender providing an additional commitment, subject to satisfaction of certain conditions. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Under the terms of our Senior Term Facility and Senior ABL Facility, we are not subject to ongoing financial maintenance covenants; however, under the Senior ABL Facility, failure to maintain certain levels of liquidity will subject the Hertz 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 June 30, 2013, we were not subject to such contractually specified fixed charge coverage ratio. | We refer to the Senior Term Facility and the Senior ABL Facility together as the “Senior Credit Facilities.” Hertz's obligations under the Senior Credit Facilities are guaranteed by its immediate parent (Hertz Investors, Inc.) and most of its direct and indirect domestic subsidiaries (subject to certain exceptions, including Hertz International Limited, which ultimately owns entities carrying on most of our international operations, and subsidiaries involved in the HVF U.S. Asset-Backed Securities, or "ABS," Program, the Donlen ABS Program and, the RCFC U.S. ABS Program). In addition, the obligations of the “Canadian borrowers” under the Senior ABL Facility are guaranteed by their respective subsidiaries, subject to certain exceptions. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
The lenders under the Senior Credit Facilities have been granted a security interest in substantially all of the tangible and intangible assets of the borrowers and guarantors under those facilities, including pledges of the stock of certain of their respective domestic subsidiaries (subject, in each case, to certain exceptions, including certain vehicles). Each of the Senior Credit Facilities permits the incurrence of future indebtedness secured on a basis either equal to or subordinated to the liens securing the applicable Senior Credit Facility or on an unsecured basis. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Borrowing Capacity and Availability | We refer to Hertz and its subsidiaries as the Hertz credit group. The Senior Credit Facilities contain a number of covenants that, among other things, limit or restrict the ability of the Hertz credit group to dispose of assets, incur additional indebtedness, incur guarantee obligations, prepay certain indebtedness, make dividends and other restricted payments (including to the parent entities of Hertz and other persons), create liens, make investments, make acquisitions, engage in mergers, change the nature of their business, engage in certain transactions with affiliates that are not within the Hertz credit group or enter into certain restrictive agreements limiting the ability to pledge assets. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Under the Senior ABL Facility, failure to maintain certain levels of liquidity will subject the Hertz 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, 2012, we were not subject to such contractually specified fixed charge coverage ratio. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
As of June 30, 2013, the following facilities were available for the use of Hertz and its subsidiaries (in millions of dollars): | Covenants in the Senior Term Facility restrict payment of cash dividends to any parent of Hertz, including Hertz Holdings, with certain exceptions, including: (i) in an aggregate amount not to exceed 1.0% of the greater of a specified minimum amount and the consolidated tangible assets of the Hertz credit group (which payments are deducted in determining the amount available as described in the next clause (ii)), (ii) in additional amounts up to a specified available amount determined by reference to, among other things, an amount set forth in the Senior Term Facility plus 50% of net income from January 1, 2011 to the end of the most recent fiscal quarter for which financial statements of Hertz are available (less certain investments) and (iii) in additional amounts not to exceed the amount of certain equity contributions made to Hertz. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Covenants in the Senior ABL Facility restrict payment of cash dividends to any parent of Hertz, including Hertz Holdings, except in an aggregate amount, taken together with certain investments, acquisitions and optional prepayments, not to exceed $200 million. Hertz may also pay additional cash dividends under the Senior ABL Facility so long as, among other things, (a) no specified default then exists or would arise as a result of making such dividends, (b) there is at least $200 million of liquidity under the Senior ABL Facility after giving effect to the proposed dividend, and (c) either (i) if such liquidity is less than $400 million immediately after giving effect to the making of such dividends, Hertz is in compliance with a specified fixed charge coverage ratio, or (ii) the amount of the proposed dividend does not exceed the sum of (x) 1.0% of tangible assets plus (y) a specified available amount determined by reference to, among other things, 50% of net income from January 1, 2011 to the end of the most recent fiscal quarter for which financial statements of Hertz are available plus (z) a specified amount of certain equity contributions made to Hertz. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
In November 2012, we amended the Senior ABL Facility to deem letters of credit issued under Dollar Thrifty's now-terminated senior revolving credit facility to have been issued under the Senior ABL Facility. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Remaining | Availability Under | Senior Notes | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Capacity | Borrowing Base | In March 2012, Hertz issued an additional $250.0 million aggregate principal of the 6.75% Senior Notes due 2019. The proceeds of this March 2012 offering were used in March 2012 in part to redeem $162.3 million principal amount of Hertz's outstanding 8.875% Senior Notes due 2014 which resulted in the write-off of unamortized debt costs of $1.2 million recorded in "Interest expense" on our consolidated statement of operations. The remainder of the proceeds of this March 2012 offering, along with cash on hand or drawings under the Senior ABL Facility were used to redeem €213.5 million ($286.0 million) of Hertz's outstanding 7.875% Senior Notes due 2014, which resulted in the write-off of unamortized debt costs of $2.0 million recorded in "Interest expense" on our consolidated statement of operations. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Limitation | In October 2012, HDTFS, Inc., a newly-formed, wholly-owned subsidiary of Hertz issued and sold $700.0 million aggregate principal amount of 5.875% Senior Notes due 2020 and $500.0 million aggregate principal amount of 6.250% Senior Notes due 2022 in a private offering. The gross proceeds of the offering were held in an escrow account until the date of the completion of the acquisition of Dollar Thrifty, at which time the gross proceeds of the offering were released from escrow and HDTFS, Inc. was merged into Hertz. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate Debt | Hertz's obligations under the indentures for the Senior Notes are guaranteed by each of its direct and indirect domestic subsidiaries that is a guarantor under the Senior Term Facility. The guarantees of all of the Subsidiary Guarantors may be released to the extent such subsidiaries no longer guarantee our Senior Credit Facilities in the United States. HERC may also be released from its guarantee under the outstanding Senior Notes at any time at which no event of default under the related indenture has occurred and is continuing, notwithstanding that HERC may remain a subsidiary of Hertz. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior ABL Facility | $ | 357.3 | $ | 357.3 | The indentures for the Senior Notes contain covenants that, among other things, limit or restrict the ability of the Hertz credit group to incur additional indebtedness, incur guarantee obligations, prepay certain indebtedness, make certain restricted payments (including paying dividends, redeeming stock or making other distributions to parent entities of Hertz and other persons outside of the Hertz credit group), make investments, create liens, transfer or sell assets, merge or consolidate, and enter into certain transactions with Hertz's affiliates that are not members of the Hertz credit group. | |||||||||||||||||||||||||||||||||||||||||||||||||
The covenants in the indentures for the Senior Notes also restrict Hertz and other members of the Hertz credit group from redeeming stock or making loans, advances, dividends, distributions or other restricted payments to any entity that is not a member of the Hertz credit group, including Hertz Holdings, subject to certain exceptions. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Corporate Debt | 357.3 | 357.3 | Promissory Notes | |||||||||||||||||||||||||||||||||||||||||||||||||||
References to our “Promissory Notes” relate to our promissory notes issued under three separate indentures prior to the Acquisition. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fleet Debt | FLEET DEBT | |||||||||||||||||||||||||||||||||||||||||||||||||||||
HVF U.S. Fleet Variable Funding Notes | 148.8 | — | The governing documents of certain of the fleet debt financing arrangements specified below contain covenants that, among other things, significantly limit or restrict (or upon certain circumstances may significantly restrict or prohibit) the ability of the borrowers, and the guarantors if applicable, to make certain restricted payments (including paying dividends, redeeming stock, making other distributions, loans or advances) to Hertz Holdings and Hertz, whether directly or indirectly. | |||||||||||||||||||||||||||||||||||||||||||||||||||
RCFC U.S. Fleet Variable Funding Notes | 60 | — | HVF U.S. ABS Program | |||||||||||||||||||||||||||||||||||||||||||||||||||
Donlen GN II Variable Funding Notes | 60 | — | Hertz Vehicle Financing LLC, an insolvency remote, direct, wholly‑owned, special purpose subsidiary of Hertz, or “HVF,” is the issuer under the HVF U.S. ABS Program. HVF has entered into a base indenture that permits it to issue term and revolving rental car asset‑backed securities, the collateral for which consists primarily of a substantial portion of the rental car fleet used in Hertz's (and through fleet sharing arrangements, a portion of the fleet used in Dollar Thrifty's) domestic car rental operations and contractual rights related to such vehicles. | |||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Fleet Financing Facility | 19 | — | References to the “HVF U.S. ABS Program” include HVF's U.S. Fleet Variable Funding Notes together with HVF's U.S. Fleet Medium Term Notes. | |||||||||||||||||||||||||||||||||||||||||||||||||||
European Revolving Credit Facility | 58.5 | — | HVF U.S. Fleet Variable Funding Notes | |||||||||||||||||||||||||||||||||||||||||||||||||||
European Securitization | 157.4 | — | References to the “HVF U.S. Fleet Variable Funding Notes” include HVF's Series 2009-1 Variable Funding Rental Car Asset Backed Notes, as amended, or the “Series 2009-1 Notes,” Series 2010-2 Variable Funding Rental Car Asset Backed Notes, or the “Series 2010-2 Notes,” and Series 2011-2 Variable Funding Rental Car Asset Backed Notes, or the “Series 2011-2 Notes,” collectively. As of December 31, 2012, the only U.S. Fleet Variable Funding Notes committed or outstanding were the Series 2009-1 Notes, which, as of December 31, 2012, permit aggregate maximum borrowings of $2,438.8 million (subject to borrowing base availability) on a revolving basis under an asset‑backed variable funding note facility. | |||||||||||||||||||||||||||||||||||||||||||||||||||
Hertz-Sponsored Canadian Securitization | 85 | — | In April 2012, HVF paid the HVF Series 2011-2 notes in full and terminated the related asset-backed variable funding note facility. | |||||||||||||||||||||||||||||||||||||||||||||||||||
Dollar Thrifty-Sponsored Canadian Securitization | 66.9 | — | In May 2012, HVF amended the HVF Series 2009-1 Notes to permit aggregate maximum borrowings of $2,188.0 million (subject to borrowing base availability). | |||||||||||||||||||||||||||||||||||||||||||||||||||
Australian Securitization | 112.3 | — | In October 2012, HVF amended the HVF Series 2009-1 Notes to permit aggregate maximum borrowings of $2,238.8 million (subject to borrowing base availability) and extend the expected final maturity by one year to March 2014. | |||||||||||||||||||||||||||||||||||||||||||||||||||
In December 2012, HVF paid the HVF Series 2010-2 Notes in full and terminated the related asset-backed variable funding note facility. At the same time, HVF amended the HVF Series 2009-1 Notes to permit aggregate maximum borrowings of $2,438.8 million (subject to borrowing base availability). | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Fleet Debt | 767.9 | — | HVF U.S. Fleet Medium Term Notes | |||||||||||||||||||||||||||||||||||||||||||||||||||
References to the “HVF U.S. Fleet Medium Term Notes” include HVF's Series 2009-2 Notes, Series 2010-1 Notes and Series 2011-1 Notes, collectively. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 1,125.20 | $ | 357.3 | Series 2009-2 Notes: In October 2009, HVF issued the Series 2009-2 Rental Car Asset Back Notes, Class A, or the “HVF Series 2009-2 Class A Notes,” in an aggregate original principal amount of $1.2 billion. In June 2010, HVF issued the Subordinated Series 2009-2 Rental Car Asset Backed Notes, Class B, or the “HVF Series 2009-2 Class B Notes,” and together with the Series 2009-2 Class A, or the “HVF Series 2009-2 Notes,” in an aggregate original principal amount of $184.3 million. | |||||||||||||||||||||||||||||||||||||||||||||||||
Series 2010-1 Notes: In July 2010, HVF issued the Series 2010-1 Rental Car Asset Backed Notes, or the “HVF Series 2010-1 Notes,” in an aggregate original principal amount of $749.8 million. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Series 2011-1 Notes: In June 2011, HVF issued the Series 2011-1 Rental Car Asset Backed Notes, or the “HVF Series 2011-1 Notes,” in an aggregate original principal amount of $598.0 million. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Our borrowing capacity and availability primarily comes from our "revolving credit facilities," which are a combination of asset-backed securitization facilities and asset-based revolving credit facilities. Creditors under each of our revolving credit facilities have a claim on a specific pool of assets as collateral. Our ability to borrow under each revolving credit facility is a function of, among other things, the value of the assets in the relevant collateral pool. We refer to the amount of debt we can borrow given a certain pool of assets as the "borrowing base." | See Note 18—Subsequent Events. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
RCFC U.S. ABS Program | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
We refer to "Remaining Capacity" as the maximum principal amount of debt permitted to be outstanding under the respective facility (i.e., the amount of debt we could borrow assuming we possessed sufficient assets as collateral) less the principal amount of debt then-outstanding under such facility. | Rental Car Finance Corporation, or “RCFC,” became an insolvency remote, indirect, wholly‑owned, special purpose subsidiary of Hertz when Hertz acquired Dollar Thrifty. RCFC is the issuer under the RCFC U.S. ABS Program. RCFC has entered into a base indenture that permits it to issue term and revolving rental car asset-backed securities, the collateral for which consists primarily of a substantial portion of the rental car fleet used in Dollar Thrifty's (and through fleet sharing arrangements, a portion of the fleet used in Hertz's) domestic car rental operations and contractual rights related to such vehicles. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
References to the “RCFC U.S. ABS Program” include RCFC's U.S. Fleet Variable Funding Notes together with RCFC's U.S. Fleet Medium Term Notes. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
We refer to "Availability Under Borrowing Base Limitation" as the lower of Remaining Capacity or the borrowing base less the principal amount of debt then-outstanding under such facility (i.e., the amount of debt we could borrow given the collateral we possess at such time). | RCFC U.S. Fleet Variable Funding Notes | |||||||||||||||||||||||||||||||||||||||||||||||||||||
References to the “RCFC U.S. Fleet Variable Funding Notes” are to the RCFC Series 2010-3 Variable Funding Rental Car Asset Backed Notes, as amended, or the “RCFC Series 2010-3 Notes,” which, as of December 31, 2012, permit aggregate maximum borrowings of $600.0 million (subject to borrowing base availability) on a revolving basis under an asset-backed variable funding note facility. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
As of June 30, 2013, the Senior Term Facility had approximately $0.1 million available under the letter of credit facility and the Senior ABL Facility had $1,006.5 million available under the letter of credit facility sublimit, subject to borrowing base restrictions. | RCFC U.S. Fleet Medium Term Notes | |||||||||||||||||||||||||||||||||||||||||||||||||||||
References to the “RCFC U.S. Fleet Medium Term Notes” include RCFC's Series 2011-1 Notes and RCFC's Series 2011-2 Notes, collectively. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Substantially all of our revenue earning equipment and certain related assets are owned by special purpose entities, or are encumbered in favor of our lenders under our various credit facilities. | Series 2011-1 Notes: In July 2011, RCFC issued the Series 2011-1 Rental Car Asset Backed Notes, or the “RCFC Series 2011-1 Notes,” in an aggregate original principal amount of $500.0 million. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Series 2011-2 Notes: In October 2011, RCFC issued the Series 2011-2 Rental Car Asset Backed Notes, or the “RCFC Series 2011-2 Notes,” in an aggregate original principal amount of $400.0 million. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Some of these special purpose entities are consolidated variable interest entities, of which Hertz is the primary beneficiary, whose sole purpose is to provide commitments to lend in various currencies subject to borrowing bases comprised of rental vehicles and related assets of certain of Hertz International, Ltd.'s subsidiaries. As of June 30, 2013 and December 31, 2012, our International Fleet Financing No. 1 B.V., International Fleet Financing No. 2 B.V. and HA Funding Pty, Ltd. variable interest entities collectively had total assets primarily comprised of loans receivable and revenue earning equipment of $579.3 million and $440.8 million, respectively, and collectively had total liabilities primarily comprised of debt of $578.8 million and $440.3 million, respectively. | Donlen ABS Program | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Donlen GN II Variable Funding Notes | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
On September 1, 2011, in connection with our acquisition of Donlen, Donlen's GN II Variable Funding Notes, or the "GN II VFN," remained outstanding and lender commitments thereunder were increased to permit aggregate maximum borrowings of $850.0 million (subject to borrowing base availability). | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
In February 2012, Hertz's indirect, wholly-owned subsidiary GN Funding II L.L.C., or “GN II,” amended the GN II VFN to permit aggregate maximum borrowings of $900.0 million (subject to borrowing base availability). | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
In July 2012, GN II amended the GN II VFN to extend the expected maturity to December 2012 and to permit aggregate maximum borrowings of $1,000.0 million (subject to borrowing base availability). | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
In October 2012, GN II amended the GN II VFN to extend the expected final maturity to December 2013. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fleet Debt-Other | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Fleet Financing Facility | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
In September 2006, Hertz and Puerto Ricancars, Inc., a Puerto Rican corporation and wholly‑owned indirect subsidiary of Hertz, or “PR Cars,” entered into a credit agreement that provides for aggregate maximum borrowings of $165.0 million (subject to borrowing base availability) on a revolving basis under an asset‑based revolving credit facility, or the “U.S. Fleet Financing Facility.” The U.S. Fleet Financing Facility is the primary fleet financing for our car rental operations in Hawaii, Kansas, Puerto Rico and the U.S. Virgin Islands. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
The obligations of each of Hertz and PR Cars under the U.S. Fleet Financing Facility are guaranteed by certain of Hertz's direct and indirect domestic subsidiaries. In addition, the obligations of PR Cars under the U.S. Fleet Financing Facility are guaranteed by Hertz. The lenders under the U.S. Fleet Financing Facility have been granted a security interest primarily in the owned rental car fleet used in our car rental operations in Hawaii, Puerto Rico and the U.S. Virgin Islands and certain contractual rights related to rental vehicles in Kansas, Hawaii, Puerto Rico and the U.S. Virgin Islands. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
In September 2011, we extended the maturity of our U.S. Fleet Financing Facility to September 2015 and increased the facility size to $190.0 million. In connection with the extension, we made a number of modifications to the financing arrangement including decreasing the advance rate and increasing pricing. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
European Revolving Credit Facility and European Fleet Notes | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
In June 2010, Hertz Holdings Netherlands B.V., an indirect wholly‑owned subsidiary of Hertz organized under the laws of The Netherlands, or “HHN BV,” entered into a credit agreement that provides for aggregate maximum borrowings of €220.0 million (the equivalent of $291.2 million as of December 31, 2012) (subject to borrowing base availability) on a revolving basis under an asset‑based revolving credit facility, or the “European Revolving Credit Facility,” and issued the 8.50% Senior Secured Notes due July 2015, or the “European Fleet Notes,” in an aggregate original principal amount of €400.0 million (the equivalent of $529.4 million as of December 31, 2012). References to the “European Fleet Debt” include HHN BV's European Revolving Credit Facility and the European Fleet Notes, collectively. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
The European Fleet Debt is the primary fleet financing for our car rental operations in Germany, Italy, Spain, Belgium, New Zealand and Luxembourg, and can be expanded to provide fleet financing in Australia, Canada, France, The Netherlands, Switzerland, and the United Kingdom. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
The obligations of HHN BV under the European Fleet Debt are guaranteed by Hertz and certain of Hertz's domestic and foreign subsidiaries. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
The agreements governing the European Revolving Credit Facility and the indenture governing the European Fleet Notes contain covenants that apply to the Hertz credit group similar to those for the Senior Notes. In addition, the agreements and indenture contain a combination of security arrangements, springing covenants and “no liens” covenants intended to give the lenders under the European Fleet Debt enhanced recourse to certain assets of HHN BV and certain foreign subsidiaries of Hertz. The terms of the European Fleet Debt permit HHN BV to incur additional indebtedness that would be pari passu with either the European Revolving Credit Facility or the European Fleet Notes. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
In June 2012, HHN BV amended the European Revolving Credit Facility to extend the maturity date from June 2013 to June 2015. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
European Securitization | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
In July 2010, certain foreign subsidiaries entered into a facility agreement that provides for aggregate maximum borrowings of €400.0 million (the equivalent of $529.4 million as of December 31, 2012) (subject to borrowing base availability) on a revolving basis under an asset‑backed securitization facility, or the “European Securitization.” The European Securitization is the primary fleet financing for our car rental operations in France and The Netherlands. The lenders under the European Securitization have been granted a security interest primarily in the owned rental car fleet used in our car rental operations in France and The Netherlands and certain contractual rights related to such vehicles. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
In August 2011, certain foreign subsidiaries extended the expected maturity of our European Securitization Facility to July 2013. In connection with the extension, International Fleet Financing No. 2 B.V. made a number of modifications to the financing arrangement including increasing the advance rate and decreasing pricing. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
In July 2012, International Fleet Financing No. 2 B.V. amended the European Securitization to extend the maturity from July 2013 to July 2014. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Hertz-Sponsored Canadian Securitization | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
In May 2007, certain foreign subsidiaries entered into a facility agreement that provides for aggregate maximum borrowings of CAD$225.0 million (the equivalent of $226.1 million as of December 31, 2012) (subject to borrowing base availability) on a revolving basis under an asset‑backed securitization facility, or as amended, the “Canadian Securitization.” The Canadian Securitization is the primary fleet financing for our car rental operations in Canada. The lender under the Canadian Securitization has been granted an indirect security interest primarily in the owned rental car fleet used in our car rental operations in Canada and certain contractual rights related to such vehicles as well as certain other assets owned by entities connected to the financing. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
In November 2011, Hertz's indirect wholly owned subsidiary HC Limited Partnership extended the maturity of the Canadian Securitization to January 2012 and reduced the facility size to CAD$200.0 million (equivalent to $201.0 million as of December 31, 2012). In connection with the extension, HC Limited Partnership made a number of modifications to the financing arrangement including decreasing the pricing. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
In January 2012, HC Limited Partnership amended the Canadian Securitization to extend the maturity date from January 2012 to March 2012. In March 2012, HC Limited Partnership amended the Canadian Securitization to extend the maturity date from March 2012 to May 2012. In the second quarter of 2012, the maturity date was extended to June 2013. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dollar Thrifty-Sponsored Canadian Securitization | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
In March 2012 certain foreign subsidiaries of Dollar Thrifty entered into a trust indenture that permits the issuance of term and revolving rental car asset-backed securities, the collateral for which consists primarily of the rental car fleet used in Dollar Thrifty’s Canadian car rental operations and contractual rights related to such vehicles. These subsidiaries became indirect wholly-owned subsidiaries of Hertz when Hertz acquired Dollar Thrifty. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
In March 2012 these subsidiaries issued asset-backed variable funding notes that provide for aggregate maximum borrowings of CAD$150.0 million (the equivalent of $150.7 million as of December 31, 2012) (subject to borrowing base availability) on a revolving basis, or the “Dollar Thrifty-Sponsored Canadian Securitization.” The expected final maturity of the Dollar Thrifty-Sponsored Canadian Securitization is August 2014. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Australian Securitization | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
In November 2010, certain foreign subsidiaries entered into a facility agreement that provides for aggregate maximum borrowings of A$250.0 million (the equivalent of $259.4 million as of December 31, 2012) (subject to borrowing base availability) on a revolving basis under an asset‑backed securitization facility, or the “Australian Securitization.” The Australian Securitization is the primary fleet financing for Hertz's car rental operations in Australia. The lender under the Australian Securitization has been granted a security interest primarily in the owned rental car fleet used in our car rental operations in Australia and certain contractual rights related to such vehicles. In connection with the issuance of the Australian Securitization, an interest rate cap was purchased by a subsidiary, HA Fleet Pty Limited. Concurrently, Hertz sold an offsetting interest rate cap, thereby neutralizing the hedge on a consolidated basis and reducing the net cost of the hedge. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
In October 2012, Hertz's indirect, wholly-owned subsidiary HA Fleet Pty Limited amended the Australian Securitization to extend the expected maturity date thereunder to December 2014 in connection with this transaction both HA Fleet Pty Limited and Hertz amended the existing interest rate caps, modifying and extending the amortization schedule to the new maturity date of the securitization. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
See Note 14—Financial Instruments. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Brazilian Fleet Financing Facility | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
As of December 31, 2012, our Brazilian operating subsidiary is party to certain local financing arrangements, which are collateralized by certain of its assets, which we refer to as the "Brazilian Fleet Financing Facility." | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
In June 2012, Hertz caused its Brazilian operating subsidiary to amend the Brazilian Fleet Financing Facility to extend the maturity date from June 2012 to February 2013. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
See Note 18—Subsequent Events. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capitalized Leases | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
References to the “Capitalized Leases” include the capitalized lease financings outstanding in the United Kingdom, or the “U.K. Leveraged Financing,” Australia, The Netherlands and the United States. The amount available under the U.K. Leveraged Financing, which is the largest portion of the Capitalized Leases, as of December 31, 2012 was £195 million (the equivalent of $314.0 million as of December 31, 2012). | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted Net Assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
As a result of the contractual restrictions on Hertz's or its subsidiaries' ability to pay dividends (directly or indirectly) under various terms of our debt, as of December 31, 2012, the restricted net assets of our subsidiaries exceeded 25% of our total consolidated net assets. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Registration Rights | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Hertz entered into exchange and registration rights agreements entered into in connection with (i) the issuance of $250 million in aggregate principal amount of the 6.75% Senior Notes due 2019 in March 2012, and (ii) the release from escrow of the proceeds of $700 million aggregate principal amount of 5.875% Senior Notes due 2020 and $500 million aggregate principal amount of 6.250% Senior Notes due 2022. Pursuant to the terms of these agreements, Hertz agreed to file a registration statement under the Securities Act of 1933, as amended, to permit either the exchange of such notes for registered notes or, in the alternative, the registered resale of such notes. Hertz's failure to meet its obligations under either exchange and registration rights agreement, including by failing to have the registration statement become effective by the date that is 365 days after the respective date of the exchange and registration rights agreement or failing to complete the exchange offer by the date that is 395 days after the date of the exchange and registration rights agreement, will result in Hertz incurring special interest on such notes at a per annum rate of 0.25% for the first 90 days of any period where a default has occurred and is continuing, which rate will be increased by an additional 0.25% during each subsequent 90 day period, up to a maximum of 0.50%. A registration statement on Form S-4 covering the exchange of such notes was declared effective by the SEC on February 1, 2013 and the exchange offer is scheduled to be completed on March 6, 2013, so we do not believe the special interest obligation is probable, and as such, we have not recorded any amounts for special interest with respect to these notes. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Covenant Compliance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Under the terms of our Senior Term Facility and Senior ABL Facility, we are not subject to ongoing financial maintenance covenants; however, under the Senior ABL Facility, failure to maintain certain levels of liquidity will subject the Hertz 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, 2012, we were not subject to such contractually specified fixed charge coverage ratio. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Borrowing Capacity and Availability | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
As of December 31, 2012, the following facilities were available for the use of Hertz and its subsidiaries (in millions of dollars): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Remaining | Availability Under | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Capacity | Borrowing Base | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Limitation | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate Debt | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior ABL Facility | $ | 1,183.70 | $ | 1,146.00 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total Corporate Debt | 1,183.70 | 1,146.00 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Fleet Debt | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
HVF U.S. Fleet Variable Funding Notes | 88.8 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
RCFC U.S. Fleet Variable Funding Notes | 81 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Donlen GN II Variable Funding Notes | 105 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Fleet Financing Facility | 24 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
European Revolving Credit Facility | 105.9 | 7.9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
European Securitization | 287.2 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Hertz-Sponsored Canadian Securitization | 100.5 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Dollar Thrifty-Sponsored Canadian Securitization | 95.5 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Australian Securitization | 110.5 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Capitalized Leases | 85.1 | 27.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Fleet Debt | 1,083.50 | 35.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 2,267.20 | $ | 1,181.40 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Our borrowing capacity and availability primarily comes from our "revolving credit facilities," which are a combination of asset-backed securitization facilities and asset-based revolving credit facilities. Creditors under each of our revolving credit facilities have a claim on a specific pool of assets as collateral. Our ability to borrow under each revolving credit facility is a function of, among other things, the value of the assets in the relevant collateral pool. We refer to the amount of debt we can borrow given a certain pool of assets as the "borrowing base." | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
We refer to "Remaining Capacity" as the maximum principal amount of debt permitted to be outstanding under the respective facility (i.e., the amount of debt we could borrow assuming we possessed sufficient assets as collateral) less the principal amount of debt then-outstanding under such facility. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
We refer to "Availability Under Borrowing Base Limitation" as the lower of Remaining Capacity or the borrowing base less the principal amount of debt then-outstanding under such facility (i.e., the amount of debt we could borrow given the collateral we possess at such time). | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
As of December 31, 2012, the Senior Term Facility had approximately $8.0 million available under the letter of credit facility and the Senior ABL Facility had $1,010.4 million available under the letter of credit facility sublimit, subject to borrowing base restrictions. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Substantially all of our revenue earning equipment and certain related assets are owned by special purpose entities, or are encumbered in favor of our lenders under our various credit facilities. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Some of these special purpose entities are consolidated variable interest entities, of which we are the primary beneficiary, whose sole purpose is to provide commitments to lend in various currencies subject to borrowing bases comprised of rental vehicles and related assets of certain of Hertz International, Ltd.'s subsidiaries. As of December 31, 2012 and December 31, 2011, our International Fleet Financing No. 1 B.V., International Fleet Financing No. 2 B.V. and HA Funding Pty, Ltd. variable interest entities had total assets primarily comprised of loans receivable and revenue earning equipment of $440.8 million and $456.3 million, respectively, and total liabilities primarily comprised of debt of $440.3 million and $455.8 million, respectively. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Interest | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
As of December 31, 2012 and 2011, accrued interest was $86.4 million and $85.7 million, respectively, which is reflected in our consolidated balance sheet in “Other accrued liabilities.” | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
For subsequent events relating to our indebtedness, see Note 18—Subsequent Events. |
DERIVATIVE_FINANCIAL_INSTRUMEN5
DERIVATIVE FINANCIAL INSTRUMENTS - DOLLAR THRIFTY (Dollar Thrifty Automotive Group Inc.) | 9 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||
Sep. 30, 2012 | Dec. 31, 2011 | |||||||||||||||||||||||||||||||||||||||||||
Dollar Thrifty Automotive Group Inc. | ||||||||||||||||||||||||||||||||||||||||||||
DERIVATIVE FINANCIAL INSTRUMENTS | 8. DERIVATIVE FINANCIAL INSTRUMENTS | 9. DERIVATIVE FINANCIAL INSTRUMENTS | ||||||||||||||||||||||||||||||||||||||||||
The Company is exposed to market risks, such as changes in interest rates, and has historically entered into interest rate swap and cap agreements to manage that risk. Additionally, some of the Company's debt facilities require interest rate cap agreements in order to limit the Company's exposure to increases in interest rates. The Company used interest rate swap agreements for asset-backed medium-term note issuances in 2007 to effectively convert variable interest rates to fixed interest rates; however, in late 2011, the Company terminated its 2007 swap agreements and paid a termination fee of $8.8 million to settle the outstanding liability. The remaining unamortized value of the hedge deferred in accumulated other comprehensive income (loss) on the balance sheet was reclassified into earnings as interest expense through July 2012. During the three and nine months ended September 30, 2012, $0.4 million and $8.5 million, respectively, were reclassified into earnings as interest expense. The Company has also used interest rate cap agreements for its Series 2010-3 VFN, to effectively limit the variable interest rate on a total of $600 million in asset-backed VFNs. These cap agreements have a termination date of July 2014. There were no derivatives designated as hedging instruments at September 30, 2012 or December 31, 2011. | The Company is exposed to market risks, such as changes in interest rates, and has entered into interest rate swap and cap agreements to manage that risk. Additionally, some of the Company's debt facilities require interest rate cap agreements in order to limit the Company's exposure to increases in interest rates. Consequently, the Company manages the financial exposure as part of its risk management program by striving to reduce the potentially adverse effects that the volatility of the financial markets may have on the Company's operating results. The Company used interest rate swap agreements for asset-backed medium-term note issuances in 2007, to effectively convert variable interest rates on a total of $500 million in asset-backed medium-term notes to fixed interest rates. On December 28, 2011, the Company terminated its 2007 swap agreements and paid a termination fee of $8.8 million to settle the outstanding liability, which is disclosed in cash flows from financing activities in the Consolidated Statements of Cash Flows. The remaining unamortized value of the hedge in accumulated other comprehensive income (loss) on the balance sheet will be reclassified into earnings as interest expense over the remaining term of the related debt through July 2012. The Company has also used interest rate cap agreements for its 2010-3 VFN, to effectively limit the variable interest rate on a total of $600 million in asset-backed VFNs. This cap has a termination date of July 2014. The Series 2010-1 VFN and Series 2010-2 VFN interest rate cap agreements were terminated in December 2011 following the termination of the related debt facilities. | |||||||||||||||||||||||||||||||||||||||||||
The fair value of derivatives outstanding at September 30, 2012 and December 31, 2011 are as follows (in thousands): | The fair value of derivatives outstanding for the years ended December 31, 2011 and 2010 are as follows (in thousands): | |||||||||||||||||||||||||||||||||||||||||||
Fair Value of Derivative Instruments | Fair Values of Derivative Instruments | |||||||||||||||||||||||||||||||||||||||||||
Asset Derivatives | Liability Derivatives | Asset Derivatives | Liability Derivatives | |||||||||||||||||||||||||||||||||||||||||
September 30, 2012 | December 31, 2011 | September 30, 2012 | December 31, 2011 | December 31, 2011 | December 31, 2010 | December 31, 2011 | December 31, 2010 | |||||||||||||||||||||||||||||||||||||
Balance Sheet | Fair | Balance Sheet | Fair | Balance Sheet | Fair | Balance Sheet | Fair | Balance | Fair | Balance | Fair | Balance | Fair | Balance | Fair | |||||||||||||||||||||||||||||
Location | Value | Location | Value | Location | Value | Location | Value | Sheet | Value | Sheet | Value | Sheet | Value | Sheet | Value | |||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments | Prepaid expenses | Prepaid expenses | Accrued | Accrued | Location | Location | Location | Location | ||||||||||||||||||||||||||||||||||||
and other assets | and other assets | liabilities | liabilities | Derivatives designated as hedging instruments | ||||||||||||||||||||||||||||||||||||||||
Interest rate contracts | $ | 23 | $ | 548 | $ | — | $ | — | Interest rate contracts | Prepaid expenses and other assets | $ | — | Prepaid expenses and other assets | $ | 861 | Accrued liabilities | $ | — | Accrued liabilities | $ | 31,254 | |||||||||||||||||||||||
Derivatives not designated as hedging instruments | ||||||||||||||||||||||||||||||||||||||||||||
The (gain) loss recognized on interest rate swap and cap agreements that do not qualify for hedge accounting treatment and thus are not designated as hedging instruments for the three and nine months ended September 30, 2012 and 2011 are as follows (in thousands): | Interest rate contracts | Prepaid expenses and other assets | $ | 548 | Prepaid expenses and other assets | $ | 494 | Accrued liabilities | $ | — | Accrued liabilities | $ | 5,634 | |||||||||||||||||||||||||||||||
Total derivatives | $ | 548 | $ | 1,355 | $ | — | $ | 36,888 | ||||||||||||||||||||||||||||||||||||
Amount of (Gain) or Loss Recognized | ||||||||||||||||||||||||||||||||||||||||||||
in Income on Derivative | ||||||||||||||||||||||||||||||||||||||||||||
Three Months | Nine Months | The interest rate swap agreements related to the Series 2006-1 notes and the interest rate cap agreements related to the Series 2010-1 VFN, the Series 2010-2 VFN and the Series 2010-3 VFN do not qualify for hedge accounting treatment. The (gain) loss recognized in income on derivatives not designated as hedging instruments for the years ended December 31, 2011 and 2010 are as follows (in thousands): | ||||||||||||||||||||||||||||||||||||||||||
Ended | Ended | |||||||||||||||||||||||||||||||||||||||||||
Derivatives Not | September 30, | September 30, | Location of (Gain) or Loss | |||||||||||||||||||||||||||||||||||||||||
Designated as Hedging | Recognized in Income on | Amount of (Gain) | Location of (Gain) or Loss | |||||||||||||||||||||||||||||||||||||||||
Instruments | 2012 | 2011 | 2012 | 2011 | Derivative | or Loss Recognized | Recognized in Income on Derivative | |||||||||||||||||||||||||||||||||||||
Interest rate contracts | $ | 40 | $ | 523 | $ | 525 | $ | (3,367 | ) | Net (increase) decrease in | in Income on | |||||||||||||||||||||||||||||||||
fair value of derivatives | Derivative | |||||||||||||||||||||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||
Derivatives Not Designated as | 2011 | 2010 | ||||||||||||||||||||||||||||||||||||||||||
The amount of gain (loss), net of tax and reclassification, recognized on the terminated hedging instruments in other comprehensive income (loss) ("OCI") and the amount of the gain (loss) reclassified from Accumulated OCI ("AOCI") into income for the three and nine months ended September 30, 2012 and 2011 are as follows (in thousands): | Hedging Instruments | |||||||||||||||||||||||||||||||||||||||||||
Interest rate contracts | $ | (3,244 | ) | $ | (28,694 | ) | Net (increase) decrease in | |||||||||||||||||||||||||||||||||||||
fair value of derivatives | ||||||||||||||||||||||||||||||||||||||||||||
Amount of Gain | ||||||||||||||||||||||||||||||||||||||||||||
or (Loss) | Total | $ | (3,244 | ) | $ | (28,694 | ) | |||||||||||||||||||||||||||||||||||||
Recognized in | ||||||||||||||||||||||||||||||||||||||||||||
OCI on | ||||||||||||||||||||||||||||||||||||||||||||
Derivative | The interest rate swap agreement entered into in May 2007 related to the Series 2007-1 notes ("2007 Swap") constituted a cash flow hedge and satisfied the criteria for hedge accounting under the "long-haul" method. | |||||||||||||||||||||||||||||||||||||||||||
(Effective | Amount of Gain or | |||||||||||||||||||||||||||||||||||||||||||
Portion) | (Loss) Reclassified | The amount of gain (loss), net of tax and reclassification, recognized on the derivative in other comprehensive income (loss) ("OCI") and the amount of the gain (loss) reclassified from Accumulated OCI ("AOCI") into income (loss) for the years ended December 31, 2011 and 2010 are as follows (in thousands): | ||||||||||||||||||||||||||||||||||||||||||
from AOCI into | ||||||||||||||||||||||||||||||||||||||||||||
Income (Effective | ||||||||||||||||||||||||||||||||||||||||||||
Portion) | Location of (Gain) or | Derivatives in Cash Flow Hedging Relationships | 2011 | 2010 | 2011 | 2010 | ||||||||||||||||||||||||||||||||||||||
Loss Reclassified from | ||||||||||||||||||||||||||||||||||||||||||||
AOCI in Income | Amount of Gain or | Amount of Gain or | ||||||||||||||||||||||||||||||||||||||||||
Derivatives in Cash Flow Hedging Relationships | 2012 | 2011 | 2012 | 2011 | (Effective Portion) | (Loss) Recognized in | (Loss) Reclassified | Location of (Gain) or Loss | ||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, | OCI on Derivative | from AOCI into Income | Reclassified from AOCI in | |||||||||||||||||||||||||||||||||||||||||
Interest rate contracts | $ | — | $ | 3,591 | $ | (207 | ) | $ | (3,572 | ) | Interest expense, net | (Effective Portion) | (Effective Portion) | Income (Effective Portion) | ||||||||||||||||||||||||||||||
of interest income | Years Ended December 31, | Interest expense, net of interest income | ||||||||||||||||||||||||||||||||||||||||||
Interest rate contracts | $ | 10,259 | $ | 5,543 | $ | (14,229 | ) | $ | (14,069 | ) | ||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||
Interest rate contracts | $ | — | $ | 10,288 | $ | (4,939 | ) | $ | (10,654 | ) | Interest expense, net | Total | $ | 10,259 | $ | 5,543 | $ | (14,229 | ) | $ | (14,069 | ) | ||||||||||||||||||||||
of interest income | ||||||||||||||||||||||||||||||||||||||||||||
At December 31, 2011, the Company no longer has an interest rate contract related to the 2007 Swap due to its early termination on December 28, 2011, and no ineffectiveness was recorded in income during 2011. Additionally, $0.4 million, net of tax, was reclassified from AOCI related to the discontinuance of a cash flow hedge during 2011. | ||||||||||||||||||||||||||||||||||||||||||||
Additionally, $0.4 million, net of tax, was reclassified from AOCI related to the discontinuance of a cash flow hedge during the nine months ended September 30, 2011. | ||||||||||||||||||||||||||||||||||||||||||||
FAIR_VALUE_MEASUREMENTS_DOLLAR4
FAIR VALUE MEASUREMENTS - DOLLAR THRIFTY (Dollar Thrifty Automotive Group Inc.) | 9 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||
Sep. 30, 2012 | Dec. 31, 2011 | ||||||||||||||||||||||||||||||
Dollar Thrifty Automotive Group Inc. | |||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS | 9. FAIR VALUE MEASUREMENTS | 10. FAIR VALUE MEASUREMENTS | |||||||||||||||||||||||||||||
Financial instruments are presented at fair value in the Company's balance sheets. 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 at the measurement date. Assets and liabilities recorded at fair value in the balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair values. These categories include (in descending order of priority): Level 1, defined as observable inputs for identical instruments such as quoted prices in active markets; Level 2, defined as inputs, other than quoted prices in active markets, that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. | Financial instruments are presented at fair value in the Company's balance sheets. Fair value is defined as the price which would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Assets and liabilities recorded at fair value in the balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair values. These categories include (in descending order of priority): Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. | ||||||||||||||||||||||||||||||
The following tables show assets and liabilities measured at fair value on a recurring basis as of September 30, 2012 and December 31, 2011 on the Company's balance sheet, and the input categories associated with those assets and liabilities: | The following tables show assets and liabilities measured at fair value on a recurring basis as of December 31, 2011 and 2010 on the Company's balance sheet, and the input categories associated with those assets and liabilities: | ||||||||||||||||||||||||||||||
Fair Value Measurements at Reporting Date Using | Fair Value Measurements at Reporting Date Using | ||||||||||||||||||||||||||||||
Description | Total Fair | Quoted Prices | Significant Other | Significant | Description | Total Fair | Quoted Prices in | Significant Other | Significant | ||||||||||||||||||||||
Value Assets | in Active | Observable | Unobservable | Value Assets | Active Markets for | Observable | Unobservable | ||||||||||||||||||||||||
(Liabilities) | Markets for | Inputs | Inputs | (Liabilities) | Identical Assets | Inputs | Inputs | ||||||||||||||||||||||||
at 9/30/12 | Identical | (Level 2) | (Level 3) | at 12/31/11 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||||||||
Assets | (in thousands) | ||||||||||||||||||||||||||||||
(Level 1) | Derivative Assets | $ | 548 | $ | — | $ | 548 | $ | — | ||||||||||||||||||||||
(in thousands) | Deferred Compensation Plan Assets(a) | 5,752 | 5,752 | — | — | ||||||||||||||||||||||||||
Derivative Assets | $ | 23 | $ | — | $ | 23 | $ | — | |||||||||||||||||||||||
Deferred Compensation Plan Assets(a) | 6,998 | 6,998 | — | — | Total | $ | 6,300 | $ | 5,752 | $ | 548 | $ | — | ||||||||||||||||||
Total | $ | 7,021 | $ | 6,998 | $ | 23 | $ | — | |||||||||||||||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||||||||||||||||
Description | Total Fair | Quoted Prices in | Significant Other | Significant | |||||||||||||||||||||||||||
Fair Value Measurements at Reporting Date Using | Value Assets | Active Markets for | Observable | Unobservable | |||||||||||||||||||||||||||
Description | Total Fair | Quoted Prices | Significant Other | Significant | (Liabilities) | Identical Assets | Inputs | Inputs | |||||||||||||||||||||||
Value Assets | in Active | Observable | Unobservable | at 12/31/10 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||||||||
(Liabilities) | Markets for | Inputs | Inputs | (in thousands) | |||||||||||||||||||||||||||
at 12/31/11 | Identical | (Level 2) | (Level 3) | Derivative Assets | $ | 1,355 | $ | — | $ | 1,355 | $ | — | |||||||||||||||||||
Assets | Derivative Liabilities | (36,888 | ) | — | (36,888 | ) | — | ||||||||||||||||||||||||
(Level 1) | Marketable Securities (available for sale) | 169 | 169 | — | — | ||||||||||||||||||||||||||
(in thousands) | Deferred Compensation Plan Assets(a) | 3,916 | — | 3,916 | — | ||||||||||||||||||||||||||
Derivative Assets | $ | 548 | $ | — | $ | 548 | $ | — | |||||||||||||||||||||||
Deferred Compensation Plan Assets(a) | 5,752 | 5,752 | — | — | Total | $ | (31,448 | ) | $ | 169 | $ | (31,617 | ) | $ | — | ||||||||||||||||
Total | $ | 6,300 | $ | 5,752 | $ | 548 | $ | — | |||||||||||||||||||||||
(a) | |||||||||||||||||||||||||||||||
Deferred Compensation Plan Assets consist primarily of equity securities. The Company also has an offsetting liability related to the Deferred Compensation Plan, which is not disclosed in the table as it is not independently measured at fair value, but rather is set to equal fair value of the assets held in the related rabbi trust. | |||||||||||||||||||||||||||||||
(a) | |||||||||||||||||||||||||||||||
Deferred Compensation Plan Assets consist primarily of equity securities. The Company also has an offsetting liability related to the Deferred Compensation Plan, which is not disclosed in the table as it is not independently measured at fair value, but rather is set to equal fair value of the assets held in the related rabbi trust. | The fair value of derivative assets and liabilities, consisting primarily of interest rate swaps and caps as discussed above, is calculated using proprietary models utilizing observable inputs, as well as future assumptions related to interest rates, credit risk and other variables. These calculations are performed by the financial institutions that are counterparties to the applicable swap and cap agreements and reported to the Company on a monthly basis. The Company uses these reported fair values to adjust the asset or liability as appropriate. The Company evaluates the reasonableness of the calculations by comparing similar calculations from other counterparties for the applicable period and performs back-testing through use of the look back approach to evaluate the fair value provided by the financial institutions. Deferred compensation plan assets consist of publicly traded securities and are valued in accordance with market quotations. The Company had no Level 3 financial instruments at any time during the years ended December 31, 2011 and 2010. | ||||||||||||||||||||||||||||||
The fair value of derivative assets, consisting of interest rate caps as discussed above, is calculated using proprietary models utilizing observable inputs, as well as future assumptions related to interest rates, credit risk and other variables. These calculations are performed by the financial institutions that are counterparties to the applicable cap agreements and reported to the Company on a monthly basis. The Company uses these reported fair values to adjust the asset as appropriate. The Company evaluates the reasonableness of the calculations by comparing similar calculations from other counterparties for the applicable period and performs back-testing through use of the look back approach to evaluate the fair value provided by the financial institutions. Deferred compensation plan assets consist of publicly traded securities and are valued in accordance with market quotations. There were no transfers into or out of Level 1 or Level 2 measurements for the nine months ended September 30, 2012 or the 12 months ended December 31, 2011. The Company's policy is to recognize transfers between levels as of the beginning of the period in which the event or change in circumstances triggering the transfer occurs. The Company had no Level 3 financial instruments at any time during the nine months ended September 30, 2012 or the 12 months ended December 31, 2011. | The following estimated fair values of financial instruments have been determined by the Company using available market information and valuation methodologies. | ||||||||||||||||||||||||||||||
The following estimated fair values of financial instruments have been determined by the Company using available market information and valuation methodologies described below. | Cash and Cash Equivalents, Cash and Cash Equivalents—Required Minimum Balance, Restricted Cash and Investments, Receivables, Accounts Payable, Accrued Liabilities and Vehicle Insurance Reserves—The carrying amounts of these items are a reasonable estimate of their fair value. The Company maintains its cash and cash equivalents in accounts that may not be federally insured. The Company has not experienced any losses in such accounts and believes it is not exposed to significant credit risk. | ||||||||||||||||||||||||||||||
Cash and Cash Equivalents and Restricted Cash and Investments—Cash and cash equivalents and restricted cash and investments consist of short-term, highly liquid investments with original maturities of three months or less when purchased and are comprised primarily of bank deposits, commercial paper and money market funds. The carrying amounts of these items are a reasonable estimate of their fair value due to the short-term nature of these instruments. The Company maintains its cash and cash equivalents in accounts that may not be federally insured. | Letters of Credit and Surety Bonds—The letters of credit and surety bonds of $203.1 million and $47.4 million, respectively, have no fair value as they support the Company's corporate operations and are not anticipated to be drawn upon. | ||||||||||||||||||||||||||||||
Receivables and Accounts Payable—The carrying amounts of these items are a reasonable estimate of their fair value. The Company has not experienced any material losses in such accounts and believes it is not exposed to significant credit risk. | Debt and Other Obligations—The fair values of the asset-backed medium-term notes were developed using a valuation model that utilizes current market and industry conditions, assumptions related to the financial insurers providing financial guaranty policies on those notes and the limited market liquidity for such notes. Additionally, the fair value of the Term Loan was similarly developed using a valuation model and current market conditions. | ||||||||||||||||||||||||||||||
Debt and Other Obligations—The fair values of the debt traded on the secondary markets were developed utilizing a market approach based on observable inputs from similar debt arrangements and from information regarding the trading of the Company's debt in non-active secondary markets and, thus, the debt is classified as Level 2 in the fair value hierarchy. The Company's other debt is not traded, including floating rate debt for which the carrying amounts are a reasonable estimate of the fair value, as well as fixed rate debt for which the fair values were estimated utilizing an income approach based on discount rates derived from other comparable issuances that include certain unobservable inputs. The non-traded debt is classified as Level 3 in the fair value hierarchy. A portion of the Company's debt is denominated in Canadian dollars, and its carrying value is impacted by exchange rate fluctuations. However, this foreign currency risk is mitigated by the underlying collateral, which is the Company's Canadian fleet. | The following tables provide information about the Company's market sensitive financial instruments valued at December 31, 2011 and 2010: | ||||||||||||||||||||||||||||||
The following tables provide information about the Company's market sensitive financial instruments valued at September 30, 2012 and December 31, 2011: | |||||||||||||||||||||||||||||||
Debt and other obligations at December 31, 2011 | Carrying | Fair Value | |||||||||||||||||||||||||||||
Value | at 12/31/11 | ||||||||||||||||||||||||||||||
Fair Value Measurements at Reporting Date Using | (in thousands) | ||||||||||||||||||||||||||||||
Description | Carrying | Fair Value | Quoted Prices | Significant | Significant | Debt: | |||||||||||||||||||||||||
Value Assets | Assets | in Active Markets | Other | Unobservable | Vehicle debt and obligations—floating rates | $ | 500,000 | $ | 495,820 | ||||||||||||||||||||||
(Liabilities) | (Liabilities) | for Identical Assets | Observable | Inputs | Vehicle debt and obligations—fixed rates | $ | 900,000 | $ | 899,292 | ||||||||||||||||||||||
at 9/30/12 | at 9/30/12 | (Level 1) | Inputs | (Level 3) | |||||||||||||||||||||||||||
(Level 2) | |||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||
Vehicle debt and obligations-floating rates(1) | $ | (510,000 | ) | $ | (510,000 | ) | $ | — | $ | — | $ | (510,000 | ) | ||||||||||||||||||
Vehicle debt and obligations-fixed rates | (900,000 | ) | (926,819 | ) | — | (516,296 | ) | (410,523 | ) | ||||||||||||||||||||||
Canadian dollar denominated vehicle debt and obligations-floating rates | (71,169 | ) | (71,169 | ) | — | — | (71,169 | ) | Debt and other obligations at December 31, 2010 | Carrying | Fair Value | ||||||||||||||||||||
Value | at 12/31/10 | ||||||||||||||||||||||||||||||
Total | $ | (1,481,169 | ) | $ | (1,507,988 | ) | $ | — | $ | (516,296 | ) | $ | (991,692 | ) | (in thousands) | ||||||||||||||||
Debt: | |||||||||||||||||||||||||||||||
Vehicle debt and obligations—floating rates(1) | $ | 1,200,000 | $ | 1,178,875 | |||||||||||||||||||||||||||
Vehicle debt and obligations—Canadian dollar denominated | $ | 49,118 | $ | 49,118 | |||||||||||||||||||||||||||
-1 | Non-vehicle debt—Term Loan | $ | 148,125 | $ | 146,459 | ||||||||||||||||||||||||||
The fair value of the Series 2010-3 VFN excludes the impact of the related interest rate cap. | |||||||||||||||||||||||||||||||
-1 | |||||||||||||||||||||||||||||||
Fair Value Measurements at Reporting Date Using | Includes $500 million relating to the Series 2006-1 notes, the $500 million Series 2007-1 notes swapped from floating interest rates to fixed interest rates, and the $200 million Series 2010-1 VFN. The fair value excludes the impact of the related interest rate swaps and cap. | ||||||||||||||||||||||||||||||
Description | Carrying | Fair Value | Quoted Prices | Significant | Significant | ||||||||||||||||||||||||||
Value Assets | Assets | in Active Markets | Other | Unobservable | |||||||||||||||||||||||||||
(Liabilities) | (Liabilities) | for Identical Assets | Observable | Inputs | |||||||||||||||||||||||||||
at 12/31/11 | at 12/31/11 | (Level 1) | Inputs | (Level 3) | |||||||||||||||||||||||||||
(Level 2) | |||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||
Vehicle debt and obligations-floating rates | $ | (500,000 | ) | $ | (495,820 | ) | $ | — | $ | (495,820 | ) | $ | — | ||||||||||||||||||
Vehicle debt and obligations-fixed rates | (900,000 | ) | (899,292 | ) | — | (499,292 | ) | (400,000 | ) | ||||||||||||||||||||||
Total | $ | (1,400,000 | ) | $ | (1,395,112 | ) | $ | — | $ | (995,112 | ) | $ | (400,000 | ) | |||||||||||||||||
EMPLOYEE_BENEFIT_PLANS_INCLUDI
EMPLOYEE BENEFIT PLANS INCLUDING SHARE-BASED PAYMENT PLANS - DOLLAR THRIFTY (Dollar Thrifty Automotive Group Inc.) | 12 Months Ended | |||||||||||||
Dec. 31, 2011 | ||||||||||||||
Dollar Thrifty Automotive Group Inc. | ||||||||||||||
EMPLOYEE BENEFIT PLANS INCLUDING SHARE-BASED PAYMENT PLANS | 11. EMPLOYEE BENEFIT PLANS INCLUDING SHARE-BASED PAYMENT PLANS | |||||||||||||
Employee Benefit Plans | ||||||||||||||
The Company sponsors a retirement savings plan that incorporates the salary reduction provisions of Section 401(k) of the Internal Revenue Code and covers substantially all employees of the Company meeting specific age and length of service requirements. The Company matches employee contributions up to 2% of the employee's eligible compensation in cash, subject to statutory limitations. | ||||||||||||||
Contributions expensed by the Company totaled $1.8 million, $1.7 million and $1.8 million in 2011, 2010 and 2009, respectively. | ||||||||||||||
Included in accrued liabilities at December 31, 2011 and 2010 is $2.3 million and $2.0 million, respectively, for employee health claims which are self-insured by the Company. The accrual includes amounts for incurred and incurred but not reported claims. The Company expensed $15.4 million, $15.8 million, and $20.2 million for self-insured health claims incurred in 2011, 2010 and 2009, respectively. | ||||||||||||||
The Company has bonus plans for its executive and middle management based on Company performance. Expense related to these plans was $9.8 million, $11.2 million and $10.0 million in 2011, 2010 and 2009, respectively. | ||||||||||||||
Deferred Compensation and Retirement Plans | ||||||||||||||
In 2009, the Company adopted a 2009 Deferred Compensation Plan wherein key executives will receive contributions equal to 15% of such executives' current annual base compensation for the year ended December 31, 2009 and thereafter. Under this Plan, participants are immediately vested in the Company's contributions. Expense related to these plans for contributions made by the Company totaled $0.9 million, $0.8 million and $0.8 million in 2011, 2010 and 2009, respectively. | ||||||||||||||
The balance in the deferred compensation and retirement plans, which is reflected in accrued liabilities, was $5.8 million and $3.9 million as of December 31, 2011 and 2010, respectively. | ||||||||||||||
Share-Based Payment Plans | ||||||||||||||
Long-Term Incentive Plan | ||||||||||||||
The Company has a long-term incentive plan ("LTIP") for employees and non-employee directors under which the Human Resources and Compensation Committee of the Board of Directors of the Company (the "Committee") is authorized to provide for grants in the form of incentive option rights, non-qualified option rights, tandem appreciation rights, free-standing appreciation rights, restricted stock, restricted stock units, performance shares, performance units and other awards to key employees and non-employee directors that may be payable or related to common stock or factors that may influence the value of common stock. The Company issues new shares from remaining authorized common stock to satisfy option exercises and grants under the LTIP. At December 31, 2011, the Company's common stock authorized for issuance under the LTIP was 2,083,550 shares. The Company has 247,517 shares available for future LTIP awards at December 31, 2011 after reserving for the maximum potential shares that could be awarded under existing LTIP grants. | ||||||||||||||
Compensation cost for non-qualified option rights, performance shares and restricted stock awards is recognized based on the fair value of the awards granted at the grant-date and is amortized to compensation expense on a straight-line basis over the requisite service periods of the stock awards, which are generally the vesting periods. The Company recognized compensation costs of $4.1 million, $4.8 million and $6.2 million during 2011, 2010 and 2009, respectively, for such awards. The Company deems a tax benefit to be realized when the benefit provides incremental benefit by reducing current taxes payable that it otherwise would have had to pay absent the share-based compensation deduction (the "with-and-without" approach). Under this approach, share-based compensation deductions are, effectively, always considered last to be realized. The total income tax benefit recognized in the statements of income for share-based compensation payments was $1.6 million, $1.9 million and $2.7 million for 2011, 2010 and 2009, respectively. | ||||||||||||||
Option Rights Plan—Under the LTIP, the Committee may grant non-qualified option rights to key employees and non-employee directors. The exercise prices for non-qualified option rights are equal to the fair market value of the Company's common stock at the date of grant. The non-qualified option rights have a term not exceeding ten years from the date of grant. The maximum number of shares for which option rights may be granted under the LTIP to any participant during any calendar year is 285,000. | ||||||||||||||
During 2011 and 2010, there were no stock option awards granted. The Black-Scholes option valuation model was used to estimate the fair value of the 2009 stock option awards at the date of the grant. The Company used the simplified method to estimate the weighted-average expected life of the options granted. The Company used a blended volatility rate that combines market-based measures of implied volatility with historical price volatility as the most appropriate indicator of the Company's expected price volatility in 2009. The risk-free interest rate is the implied zero-coupon yield for U.S. Treasury securities having a maturity approximately equal to the expected life at the time of grant. The expected dividend payments were zero as the Company has not paid cash dividends since completion of its initial public offering. The assumptions used to calculate compensation expense relating to the stock option awards granted during 2009 were as follows: weighted-average expected life of the awards of five years, expected price volatility factor of 80.24%, risk-free interest rate of 2.36% and no dividend payments. The weighted average grant-date fair value of options issued in 2009 was $4.44. The options issued in May 2009 vest in installments over three years with 20% exercisable in each of 2010 and 2011 and the remaining 60% exercisable in 2012. The total fair value of options vested during 2011, 2010 and 2009 was $4.0 million, $0.9 million and $0.2 million, respectively. Unrecognized expense remaining for the options at December 31, 2011, was $0.2 million and will be recognized through April 2012. | ||||||||||||||
The following table sets forth the non-qualified option rights activity under the LTIP for the period indicated: | ||||||||||||||
Number of | Weighted | Weighted | Aggregate | |||||||||||
Shares | Average | Average | Intrinsic Value | |||||||||||
Exercise | Remaining | |||||||||||||
Price | Contractual | |||||||||||||
Term | ||||||||||||||
(In Thousands) | (In Thousands) | |||||||||||||
Outstanding at January 1, 2011 | 2,277 | $ | 5.73 | 7.61 | $ | 94,545 | ||||||||
Granted | — | — | ||||||||||||
Exercised | (672 | ) | 7.1 | |||||||||||
Canceled (Forfeited/Expired) | (30 | ) | 7.62 | |||||||||||
Outstanding at December 31, 2011 | 1,575 | $ | 5.11 | 6.89 | $ | 102,579 | ||||||||
Fully vested and exercisable options at: December 31, 2011 | 917 | $ | 5.46 | 6.66 | $ | 59,398 | ||||||||
Options expected to vest in the future at: December 31, 2011 | 658 | $ | 4.63 | 7.23 | $ | 43,181 | ||||||||
The total intrinsic value of options exercised during 2011, 2010 and 2009 was $38.1 million, $3.8 million, and $0.6 million, respectively. Total cash received by the Company for non-qualified option rights exercised during 2011, 2010 and 2009 totaled $4.8 million, $3.0 million and $2.3 million, respectively. | ||||||||||||||
Performance Shares—Performance share awards, which may take the form of performance shares or performance units, are granted to Company officers and certain key employees. The maximum amount of performance share awards that may be granted under the LTIP during any year to any participant is 160,000 common shares. Values of the performance shares earned are recognized as compensation expense over the period the shares are earned. | ||||||||||||||
In December 2011, a target number of performance units was granted with a grant-date fair value of $69.58. The grant-date fair value for the awards was based on the closing market price of the Company's common shares on the date of grant. These performance units, which will settle in Company shares, will vest over a three-year requisite service period following the grant date with 25% vesting on December 31, 2013 and the remaining 75% vesting on December 31, 2014. The number of performance units ultimately earned will depend upon the level of corporate performance against a pre-established target in 2012. In December 2010, a target number of performance units was granted with a grant-date fair value of $47.13. The grant-date fair value for the awards was based on the closing market price of the Company's common shares on the date of grant. These performance units, which will settle in Company shares, will vest over a three-year requisite service period following the grant date with 25% vesting on December 31, 2012 and the remaining 75% vesting on December 31, 2013. Based upon the level of corporate performance against a pre-established target in 2011, approximately 122,000 performance units were earned, subject to vesting requirements. No awards were granted in 2009. | ||||||||||||||
Performance share awards earned are settled based upon vesting of the grant, provided the grantee is then employed by the Company. Following completion of the performance period, for instances of retirement, involuntary termination without cause, disability or death, performance share awards vest on a pro-rata basis in compliance with the Internal Revenue Code Section 409A. Any performance share award installments not earned at the end of the requisite service period are forfeited. In March 2011, the 2008 grant of performance shares earned from January 1, 2008 through December 31, 2010 totaling 73,000 shares, net of forfeitures, vested at 200% of the target award (total of approximately 146,000 shares) with a total value to the recipients of approximately $3.5 million. The Company withheld approximately 52,000 of these shares for the payment of taxes owed by the recipients and designated the shares withheld as treasury shares. In March 2010, 36,000 performance shares, net of forfeitures, from the 2007 grant earned from January 1, 2007 through December 31, 2009 and the 2008 grant of performance shares for a retired employee vested with a total value to the recipients of approximately $1.7 million. The Company withheld approximately 12,000 of these shares for the payment of taxes owed by the recipients, and designated the shares withheld as treasury shares. In March 2009, the 2006 grant of performance shares earned from January 1, 2006 through December 31, 2008 and the 2007 and 2008 grants of performance shares for terminated employees, net of forfeitures, totaling 64,000 shares vested, were settled through the issuance of common stock totaling approximately $2.5 million. No shares were used for net settlement to offset taxes in 2009. | ||||||||||||||
The following table presents the status of the Company's nonvested performance shares for the period indicated: | ||||||||||||||
Nonvested Shares | Shares | Weighted-Average | ||||||||||||
Grant-Date | ||||||||||||||
Fair Value | ||||||||||||||
(In Thousands) | ||||||||||||||
Nonvested at January 1, 2011 | 238 | $ | 39.07 | |||||||||||
Granted | 140 | 69.58 | ||||||||||||
Vested | (73 | ) | 27.95 | |||||||||||
Forfeited | (43 | ) | 35.02 | |||||||||||
Nonvested at December 31, 2011 | 262 | $ | 59.11 | |||||||||||
At December 31, 2011, the total compensation cost related to nonvested performance share awards not yet recognized is estimated at approximately $11.0 million, depending upon the Company's performance against targets specified in the performance share agreement. This estimated compensation cost is expected to be recognized over the weighted-average period of 2.2 years. The total intrinsic value of vested and issued performance shares during 2011, 2010 and 2009 was $7.6 million, $1.1 million and $0.1 million, respectively. As of December 31, 2011, the intrinsic value of the nonvested performance share awards was $18.4 million. | ||||||||||||||
Restricted Stock Units—Under the LTIP, the Committee may grant restricted stock units to key employees and non-employee directors. The grant-date fair value of the award is based on the closing market price of the Company's common shares on the date of grant. The total fair value of restricted stock units that vested during 2011, 2010 and 2009 was $0.6 million, $0.6 million and $0.2 million, respectively. | ||||||||||||||
In January 2011, non-employee directors were granted 9,330 shares with a grant-date fair value of $48.24 per share that vested on December 31, 2011. In January 2010, non-employee directors were granted 17,800 shares with a grant-date fair value of $25.28, which vested on December 31, 2010. In January 2009, non-employee directors were granted 95,812 shares with a grant-date fair value of $1.23 and 56,910 shares that had the right to receive cash payments at the settlement date price, which vested on December 31, 2009. The weighted average grant-date fair value of shares granted in 2009, to non-employee and employee directors, was $2.33. In 2009, compensation costs included $1.5 million related to liability-based restricted stock units, based on director elections. The Committee generally grants restricted stock units to non-employee directors. These grants generally vest at the end of the fiscal year in which the grants were made. | ||||||||||||||
An employee director was granted 50,000 shares in May 2009 with a grant-date fair value of $4.44 per share that vest in installments over three years with 20% vesting in each of 2010 and 2011 and the remaining 60% vesting in 2012. In 2011, 2010 and 2009, an employee director was issued 30,057, 30,053 and 20,053 restricted stock units that vested during the year, respectively. In 2011, of the 30,057 restricted stock units, 5,616 shares were used for net settlement to offset taxes, and designated the shares withheld as treasury shares. In 2010, of the 30,053 restricted stock units, 6,991 shares were used for net settlement to offset taxes, and designated the shares withheld as treasury shares. The total intrinsic value of vested and issued restricted stock units during 2011, 2010 and 2009 was $2.1 million, $1.5 million and $0.5 million, respectively. At December 31, 2011, the total compensation cost related to nonvested restricted stock unit awards not yet recognized is less than $0.1 million, which is expected to be recognized on a straight-line basis over the vesting period of the restricted stock units. | ||||||||||||||
The following table presents the status of the Company's nonvested restricted stock units for, and changes during, the period indicated: | ||||||||||||||
Nonvested Shares | Shares | Weighted-Average | ||||||||||||
Grant-Date | ||||||||||||||
Fair Value | ||||||||||||||
(In Thousands) | ||||||||||||||
Nonvested at January 1, 2011 | 64 | $ | 4.55 | |||||||||||
Granted | 9 | 48.24 | ||||||||||||
Vested | (39 | ) | 14.17 | |||||||||||
Forfeited | — | — | ||||||||||||
Nonvested at December 31, 2011 | 34 | $ | 5.41 | |||||||||||
INCOME_TAXES_DOLLAR_THRIFTY1
INCOME TAXES - DOLLAR THRIFTY | 6 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | ||||||||||||||||||||||||||||||||
Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | ||||||||||||||||||||||||||||||||||
INCOME TAXES | Taxes on Income | Taxes on Income | 11. INCOME TAXES | 12. INCOME TAXES | |||||||||||||||||||||||||||||||
The effective tax rate for the three months ended June 30, 2013 and 2012 was 42.4% and 41.2%, respectively. The effective tax rate for the six months ended June 30, 2013 and 2012 was 49.8% and 64.3%, respectively. The effective tax rate for the full fiscal year 2013 is expected to be approximately 41%. The provision for taxes on income of $95.8 million for the three months ended June 30, 2013 increased from $70.7 million for the three months ended June 30, 2012, primarily due to higher income before income taxes, changes in geographic earnings mix and changes in losses in certain non-U.S. jurisdictions for which tax benefits are not realized, and non-deductible acquisition costs related to the China transaction. The provision for taxes on income of $155.3 million for the six months ended June 30, 2013 increased from $94.9 million for the six months ended June 30, 2012, primarily due to higher income before income taxes, changes in geographic earnings mix and changes in losses in certain non-U.S. jurisdictions for which tax benefits are not realized, and non-deductible acquisition costs related to the China transaction. | The components of income (loss) before income taxes for the periods were as follows (in millions of dollars): | ||||||||||||||||||||||||||||||||||
The Company has provided for income taxes on consolidated taxable income using a consolidated effective tax rate which reflects the utilization of Canadian tax net operating loss ("NOL") carryforwards to the extent of Canadian taxable income. A full valuation allowance had previously been recorded against the Canadian NOLs due to losses in the Canadian operations. Deferred income taxes are provided for the temporary differences between the financial reporting basis and the tax basis of the Company's assets and liabilities. A valuation allowance is recorded for deferred income tax assets when management determines it is more likely than not that such assets will not be realized. | Income tax expense consists of the following: | ||||||||||||||||||||||||||||||||||
Years ended December 31, | The Company utilizes a like-kind exchange program for its vehicles whereby tax basis gains on disposal of eligible revenue-earning vehicles are deferred for purposes of U.S. federal and state income tax (the "Like-Kind Exchange Program"). To qualify for Like-Kind Exchange Program treatment, the Company exchanges (through a qualified intermediary) vehicles being disposed of with vehicles being purchased allowing the Company to carry-over the tax basis of vehicles sold to replacement vehicles, thereby deferring taxable gains from vehicle dispositions. In addition, the Company has historically elected to utilize accelerated or "bonus" depreciation methods on its vehicle inventories in order to defer its cash liability for U.S. federal and state income tax purposes. The Company's ability to continue to defer the reversal of prior period tax deferrals will depend on a number of factors, including the size of the Company's fleet, as well as the availability of accelerated depreciation methods in future years. Accordingly, the Company may make material cash federal income tax payments in future periods. Based on existing tax law, the Company expects to be a cash taxpayer in 2012. During the nine months ended September 30, 2012, the Company received a tax refund of $8.8 million due to overpayments of the excess estimated tax payments made in 2011, and paid $29 million in estimated federal taxes for 2012. | ||||||||||||||||||||||||||||||||||
2012 | 2011 | 2010 | Year Ended December 31, | ||||||||||||||||||||||||||||||||
Domestic | $ | 407.7 | $ | 235.9 | $ | (81.2 | ) | For the three and nine months ended September 30, 2012, the overall effective tax rate of 37.6% and 38.1%, respectively, and for the three and nine months ended September 30, 2011, the overall effective tax rate of 37.1% and 39.1%, respectively, differed from the U.S. statutory federal income tax rate primarily due to state and local taxes and the operating results of DTG Canada for which no income tax expense was recorded due to the utilization of prior NOL carryforwards for which no benefit had previously been recognized due to valuation allowance. | 2011 | 2010 | 2009 | ||||||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||||||||||||
Foreign | 95.2 | 138 | 113.5 | As of September 30, 2012 and December 31, 2011, the Company had no material liability for unrecognized tax benefits. There are no material tax positions for which it is reasonably possible that unrecognized tax benefits will significantly change in the 12 months subsequent to September 30, 2012. | Current: | ||||||||||||||||||||||||||||||
Federal | $ | 6,019 | $ | 79 | $ | 4,867 | |||||||||||||||||||||||||||||
Total | $ | 502.9 | $ | 373.9 | $ | 32.3 | The Company files income tax returns in the U.S. federal and various state, local and foreign jurisdictions. In the Company's significant tax jurisdictions, the tax years 2009 and later are subject to examination by U.S. federal taxing authorities and the tax years 2008 and later are subject to examination by state and foreign taxing authorities. | State and local | 8,184 | 12,535 | 13,417 | ||||||||||||||||||||||||
Foreign | 837 | 631 | 848 | ||||||||||||||||||||||||||||||||
The total provision (benefit) for taxes on income consists of the following (in millions of dollars): | The Company accrues interest and penalties on underpayment of income taxes related to unrecognized tax benefits as a component of income tax expense in the condensed consolidated statements of comprehensive income. No material amounts were recognized for interest and penalties during the three and nine months ended September 30, 2012 and 2011. | ||||||||||||||||||||||||||||||||||
15,040 | 13,245 | 19,132 | |||||||||||||||||||||||||||||||||
Deferred: | |||||||||||||||||||||||||||||||||||
Years ended December 31, | Federal | 78,316 | 70,968 | 19,365 | |||||||||||||||||||||||||||||||
2012 | 2011 | 2010 | State and local | 8,336 | 5,989 | (2,511 | ) | ||||||||||||||||||||||||||||
Current: | |||||||||||||||||||||||||||||||||||
Federal | $ | 20.1 | $ | 10.3 | $ | 10.2 | 86,652 | 76,957 | 16,854 | ||||||||||||||||||||||||||
Foreign | 32.3 | 30.6 | 41.5 | $ | 101,692 | $ | 90,202 | $ | 35,986 | ||||||||||||||||||||||||||
State and local | 39.1 | 28.5 | 1.5 | ||||||||||||||||||||||||||||||||
Deferred tax assets and liabilities consist of the following: | |||||||||||||||||||||||||||||||||||
Total current | 91.5 | 69.4 | 53.2 | ||||||||||||||||||||||||||||||||
Deferred: | December 31, | ||||||||||||||||||||||||||||||||||
Federal | 141.9 | 82.4 | (18.6 | ) | 2011 | 2010 | |||||||||||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||||||||||||
Foreign | 11.9 | (3.2 | ) | 1.3 | Deferred tax assets: | ||||||||||||||||||||||||||||||
Intangible asset amortization | $ | 32,744 | $ | 37,176 | |||||||||||||||||||||||||||||||
State and local | (18.2 | ) | (4.8 | ) | (2.6 | ) | Vehicle insurance reserves | 30,183 | 38,456 | ||||||||||||||||||||||||||
Total deferred | 135.6 | 74.4 | (19.9 | ) | Other accrued liabilities | 27,450 | 33,621 | ||||||||||||||||||||||||||||
Interest rate swap | — | 15,267 | |||||||||||||||||||||||||||||||||
Total provision (benefit) | $ | 227.1 | $ | 143.8 | $ | 33.3 | AMT credit carryforward | — | 7,252 | ||||||||||||||||||||||||||
Canadian NOL carryforwards | 16,561 | 17,650 | |||||||||||||||||||||||||||||||||
Other Canadian temporary differences | 6,278 | 6,462 | |||||||||||||||||||||||||||||||||
The principal items of the U.S. and foreign net deferred tax assets and liabilities at December 31, 2012 and 2011 are as follows (in millions of dollars): | Federal and state NOL carryforwards | 50,993 | 5,723 | ||||||||||||||||||||||||||||||||
Allowance for doubtful accounts and notes receivable | 1,036 | 1,729 | |||||||||||||||||||||||||||||||||
Canadian depreciation | 1,834 | 1,862 | |||||||||||||||||||||||||||||||||
2012 | 2011 | ||||||||||||||||||||||||||||||||||
Deferred Tax Assets: | 167,079 | 165,198 | |||||||||||||||||||||||||||||||||
Employee benefit plans | $ | 103.6 | $ | 102.8 | Valuation allowance | (24,705 | ) | (26,042 | ) | ||||||||||||||||||||||||||
Net operating loss carryforwards | 1,610.90 | 1,743.50 | Total | $ | 142,374 | $ | 139,156 | ||||||||||||||||||||||||||||
Foreign tax credit carryforwards | 20.8 | 20.8 | Deferred tax liabilities: | ||||||||||||||||||||||||||||||||
Depreciation | $ | 484,942 | $ | 381,078 | |||||||||||||||||||||||||||||||
Federal, state and foreign local tax credit carryforwards | 26.8 | 15 | Other | 394 | 1,008 | ||||||||||||||||||||||||||||||
Accrued and prepaid expenses | 341.7 | 327.4 | Total | $ | 485,336 | $ | 382,086 | ||||||||||||||||||||||||||||
Total Deferred Tax Assets | 2,103.80 | 2,209.50 | |||||||||||||||||||||||||||||||||
For the year ended December 31, 2011, the change in the net deferred tax liabilities constituted $86.7 million of deferred tax expense and $13.3 million of other comprehensive income that relates to the interest rate swap and foreign currency translation. | |||||||||||||||||||||||||||||||||||
Less: Valuation Allowance | (226.4 | ) | (186.7 | ) | |||||||||||||||||||||||||||||||
Total Net Deferred Tax Assets | 1,877.40 | 2,022.80 | The Company has provided for income taxes in the U.S. and in Canada based on taxable income or loss and other tax attributes separately for each jurisdiction. The Company has established tax provisions separately for U.S. taxable income and Canadian losses, for which no income tax benefit was recorded. Deferred income taxes are provided for the temporary differences between the financial reporting basis and the tax basis of the Company's assets and liabilities. A valuation allowance is recorded for deferred income tax assets when management determines it is more likely than not that such assets will not be realized. | ||||||||||||||||||||||||||||||||
Deferred Tax Liabilities: | The Company utilizes a like-kind exchange program for its vehicles whereby tax basis gains on disposal of eligible revenue-earning vehicles are deferred for purposes of U.S. federal and state income tax (the "Like-Kind Exchange Program"). To qualify for Like-Kind Exchange Program treatment, the Company exchanges (through a qualified intermediary) vehicles being disposed of with vehicles being purchased allowing the Company to carry-over the tax basis of vehicles sold to replacement vehicles, thereby deferring taxable gains from vehicle dispositions. In addition, the Company has historically elected to utilize accelerated or "bonus" depreciation methods on its vehicle inventories in order to defer its cash liability for U.S. federal and state income tax purposes. The Company's ability to continue to defer the reversal of prior period tax deferrals will depend on a number of factors, including the size of the Company's fleet, as well as the availability of accelerated depreciation methods in future years. Accordingly, the Company may make material cash federal income tax payments in future periods. | ||||||||||||||||||||||||||||||||||
Depreciation on tangible assets | (3,081.4 | ) | (2,742.3 | ) | |||||||||||||||||||||||||||||||
Intangible assets | (1,477.1 | ) | (942.4 | ) | In September 2010, Congress passed and the President signed into law the Small Business Jobs and Credit Act of 2010 (the "Small Business Act"), which extended 50% bonus depreciation allowances for assets placed in service in 2010, retroactively to the first of the year. In December 2010, Congress passed and the President signed into law the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (the "Tax Relief Act"), which increased the bonus depreciation allowance to 100% for assets placed in service from September 9, 2010 through December 31, 2011, as well as provided for 50% bonus depreciation for assets placed in service in 2012. During the first quarter of 2011, the Company received federal tax refunds of $50 million, based on overpayments of estimated taxes made in 2010, as a result of the enactment of the Small Business and Tax Relief Acts. | ||||||||||||||||||||||||||||||
Total Deferred Tax Liabilities | (4,558.5 | ) | (3,684.7 | ) | |||||||||||||||||||||||||||||||
Net Deferred Tax Liability | $ | (2,681.1 | ) | $ | (1,661.9 | ) | At December 31, 2011, the Company has federal Net Operating Loss ("NOL") carryfowards of approximately $166.3 million and expects to utilize the entire amount to offset federal taxable income in 2012. The Company has NOL carryforwards available in certain states to offset future state taxable income. A valuation allowance of approximately $24.6 million and $25.9 million existed at December 31, 2011 and 2010, respectively, for Canadian NOLs and approximately $0.1 million at both December 31, 2011 and 2010, for state NOLs. At December 31, 2011, DTG Canada has NOL carryforwards of approximately $66.2 million available to offset future taxable income in Canada. The Canadian NOLs will begin expiring in 2014 and will continue to expire through 2031. Valuation allowances have been established for the total estimated future tax effect of the Canadian NOLs and other Canadian net deferred tax assets. | ||||||||||||||||||||||||||||
As of December 31, 2012, deferred tax assets of $1,294.3 million were recorded for unutilized U.S. Federal Net Operating Losses, or “NOL,” carry forwards of $3,697.9 million. The total Federal NOL carry forwards are $3,775.0 million of which $77.1 million relate 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 $27.0 million will be recorded to Additional paid-in capital. The Federal NOLs begin to expire in 2025. State NOLs exclusive of the effects of the excess tax deductions, have generated a deferred tax asset of $105.8 million. The state NOLs expire over various years beginning in 2013 depending upon particular jurisdiction. | |||||||||||||||||||||||||||||||||||
On January 1, 2009, Bank of America acquired Merrill Lynch. For U.S. income tax purposes the transaction, when combined with other unrelated transactions during the previous 36 months, resulted in a change in control as that term is defined in Section 382 of the Internal Revenue Code. Consequently, utilization of all pre-2009 U.S. net operating losses is subject to an annual limitation. We have calculated the expected annual base limitation as well as additional limitations resulting from a net unrealized built in gain as of the acquisition date and other adjustments. Based on the calculations, the limitation is not expected to result in a loss of net operating losses or have a material adverse impact on taxes. | The Company's overall effective tax rate differs from the maximum U.S. statutory federal income tax rate due primarily to state and local taxes. The following summary reconciles taxes at the maximum U.S. statutory federal income tax rate with recorded taxes: | ||||||||||||||||||||||||||||||||||
As of December 31, 2012, deferred tax assets of $248.5 million were recorded for foreign NOL carry forwards of $1,049.0 million. A valuation allowance of $200.6 million at December 31, 2012 was recorded against these deferred tax assets because those assets relate to jurisdictions that have historical losses and the likelihood exists that a portion of the NOL carry forwards may not be utilized in the future. | |||||||||||||||||||||||||||||||||||
The foreign NOL carry forwards of $1,049.0 million include $775.5 million which have an indefinite carry forward period and associated deferred tax assets of $170.6 million. The remaining foreign NOLs of $273.5 million are subject to expiration beginning in 2015 and have associated deferred tax assets of $77.9 million. | |||||||||||||||||||||||||||||||||||
As of December 31, 2012, deferred tax assets for U.S. Foreign Tax Credit carry forwards were $20.8 million which relate to credits generated as of December 31, 2007. The carry forwards will begin to expire in 2015. A valuation allowance of $13.5 million at December 31, 2012 was recorded against a portion of the U.S. foreign tax credit deferred tax assets in the likelihood that they may not be utilized in the future. A deferred tax asset was also recorded for various state tax credit carry forwards of $3.0 million, which will begin to expire in 2027. | Year Ended December 31, | ||||||||||||||||||||||||||||||||||
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 carry forwards and estimates of projected future taxable income. Based on the assessment, as of December 31, 2012, total valuation allowances of $226.4 million were recorded against deferred tax assets. Although realization is not assured, we have concluded that it is more likely than not the remaining deferred tax assets of $1,877.4 million will be realized and as such no valuation allowance has been provided on these assets. | 2011 | 2010 | 2009 | ||||||||||||||||||||||||||||||||
The significant items in the reconciliation of the statutory and effective income tax rates consisted of the following: | Amount | Percent | Amount | Percent | Amount | Percent | |||||||||||||||||||||||||||||
(Amounts in Thousands) | |||||||||||||||||||||||||||||||||||
Tax expense computed at the maximum U.S. statutory rate | $ | 91,435 | 35 | % | $ | 77,496 | 35 | % | $ | 28,353 | 35 | % | |||||||||||||||||||||||
Years ended December 31, | Difference resulting from: | ||||||||||||||||||||||||||||||||||
2012 | 2011 | 2010 | State and local taxes, net of federal income tax benefit | 11,132 | 4.2 | % | 12,056 | 5.4 | % | 7,007 | 8.6 | % | |||||||||||||||||||||||
Statutory Federal Tax Rate | 35 | % | 35 | % | 35 | % | Foreign (income) losses | (623 | ) | (0.2 | )% | 1,522 | 0.7 | % | 1,111 | 1.4 | % | ||||||||||||||||||
Foreign tax differential | (3.2 | ) | (3.3 | ) | (32.1 | ) | Foreign taxes | 586 | 0.2 | % | 416 | 0.2 | % | 633 | 0.8 | % | |||||||||||||||||||
State and local income taxes, net of federal income tax benefit | 2.9 | 3.2 | (5.2 | ) | Other | (838 | ) | (0.3 | )% | (1,288 | ) | (0.6 | )% | (1,118 | ) | (1.4 | )% | ||||||||||||||||||
Change in state statutory rates, net of federal income tax benefit | (1.0 | ) | 0.5 | 5.1 | Total | $ | 101,692 | 38.9 | % | $ | 90,202 | 40.7 | % | $ | 35,986 | 44.4 | % | ||||||||||||||||||
Federal and foreign permanent differences | 2.3 | (1.1 | ) | (24.0 | ) | ||||||||||||||||||||||||||||||
The Company had no material liability for unrecognized tax benefits at December 31, 2011. There are no material tax positions for which it is reasonably possible that unrecognized tax benefits will significantly change in the twelve months subsequent to December 31, 2011. | |||||||||||||||||||||||||||||||||||
Withholding taxes | 1.7 | 2 | 26.2 | ||||||||||||||||||||||||||||||||
The Company files income tax returns in the U.S. federal and various state, local and foreign jurisdictions. In the Company's significant tax jurisdictions, the tax years 2008 and later are subject to examination by U.S. federal taxing authorities and the tax years 2007 and later are subject to examination by state and foreign taxing authorities. | |||||||||||||||||||||||||||||||||||
Uncertain tax positions | (0.6 | ) | (0.8 | ) | 11.2 | ||||||||||||||||||||||||||||||
The Company accrues interest and penalties on underpayment of income taxes related to unrecognized tax benefits as a component of income tax expense in the consolidated statements of income. No material amounts were recognized for interest and penalties under ASC Topic 740 during the years ended December 31, 2011, 2010 and 2009. | |||||||||||||||||||||||||||||||||||
Change in valuation allowance | 7.9 | 0.6 | 85.1 | ||||||||||||||||||||||||||||||||
All other items, net | 0.2 | 2.4 | 1.8 | ||||||||||||||||||||||||||||||||
Effective Tax Rate | 45.2 | % | 38.5 | % | 103.1 | % | |||||||||||||||||||||||||||||
The effective tax rate for the year ended December 31, 2012 was 45.2% as compared to 38.5% in the year ended December 31, 2011. The provision for taxes on income increased $83.3 million, primarily due to higher income before income taxes, changes in geographic earnings mix, changes in valuation allowances for losses in certain non-U.S. jurisdictions for which tax benefits cannot be realized and non-deductible compensation payments under Internal Revenue Code Section 280(G) related to the Dollar Thrifty acquisition. | |||||||||||||||||||||||||||||||||||
The negative effective tax rate in 2010 is primarily due to a lower loss before income taxes in 2010, valuation allowances for losses in certain non-U.S. jurisdictions for which tax benefits cannot be realized and differences in foreign tax rates versus the U.S. Federal tax rate and the impact of the France law change in 2010. | |||||||||||||||||||||||||||||||||||
As of December 31, 2012, our foreign subsidiaries have $270.3 million of undistributed earnings which would 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 undistributed earnings offshore. It is not practicable to estimate the amount of such deferred tax liabilities. 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, deferred tax liabilities will be recorded. | |||||||||||||||||||||||||||||||||||
As of December 31, 2012, total unrecognized tax benefits were $17.2 million, all of which, if recognized, would favorably impact the effective tax rate in future periods. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in millions of dollars): | |||||||||||||||||||||||||||||||||||
2012 | 2011 | 2010 | |||||||||||||||||||||||||||||||||
Balance at January 1 | $ | 21.6 | $ | 27.2 | $ | 25.6 | |||||||||||||||||||||||||||||
Increase (decrease) attributable to tax positions taken during prior periods | (6.8 | ) | (9.5 | ) | 0.3 | ||||||||||||||||||||||||||||||
Increase attributable to tax positions taken during the current year | 2.4 | 3.9 | 1.3 | ||||||||||||||||||||||||||||||||
Decrease attributable to settlements with taxing authorities | — | — | — | ||||||||||||||||||||||||||||||||
Balance at December 31 | $ | 17.2 | $ | 21.6 | $ | 27.2 | |||||||||||||||||||||||||||||
We conduct business globally and, as a result, file one or more income tax returns in the U.S. and non-U.S. jurisdictions. In the normal course of business we are subject to examination by taxing authorities throughout the world. The open tax years for these jurisdictions span from 2003 to 2012. We are currently under audit by the Internal Revenue Service for tax years 2006 to 2009. Several U.S. state and non-U.S. jurisdictions are under audit. | |||||||||||||||||||||||||||||||||||
In many cases the uncertain tax positions are related to tax years that remain subject to examination by the relevant taxing authorities. It is reasonable that approximately $6.8 million of unrecognized tax benefits may reverse within the next twelve months due to settlement with the relevant taxing authorities and/or the filing of amended income tax returns. | |||||||||||||||||||||||||||||||||||
Net, after-tax interest and penalties related to the liabilities for unrecognized tax benefits are classified as a component of “Provision for taxes on income” in the consolidated statement of operations. During the years ended December 31, 2012, 2011 and 2010, approximately $0.6 million, $1.9 million and $0.2 million, respectively, in net, after-tax interest and penalties were recognized. As of December 31, 2012 and 2011, approximately $4.2 million and $3.7 million, respectively, of net, after-tax interest and penalties was accrued in our consolidated balance sheet within "Accrued taxes." |
STOCKHOLDERS_EQUITY_DOLLAR_THR3
STOCKHOLDERS' EQUITY - DOLLAR THRIFTY | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||
Jun. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2011 | ||||||||||||||||||||||||||||||||||||||||||||
Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | |||||||||||||||||||||||||||||||||||||||||||||
STOCKHOLDERS' EQUITY | Accumulated Other Comprehensive Loss | 10. STOCKHOLDERS' EQUITY | 13. STOCKHOLDERS' EQUITY | |||||||||||||||||||||||||||||||||||||||||||
Changes in the accumulated other comprehensive loss balance by component (net of tax) were as follows (in millions of dollars): | ||||||||||||||||||||||||||||||||||||||||||||||
Share Repurchase Program | Share Repurchase Program | |||||||||||||||||||||||||||||||||||||||||||||
Pension and Other Post-Employment Benefits | Foreign Currency Items | Unrealized Losses on Terminated Net Investment Hedges | Unrealized Gains on Available for Sale Securities | Other | Accumulated Other Comprehensive Loss | In September 2011, the Company announced that its Board of Directors had increased authorization under the share repurchase program to $400 million. The share repurchase program is discretionary and has no expiration date. Subject to applicable law, the Company may repurchase shares through forward stock repurchase agreements, accelerated stock buyback programs, directly in the open market, in privately negotiated transactions, or pursuant to derivative instruments or plans complying with Securities and Exchange Commission ("SEC") Rule 10b5-1, among other types of transactions and arrangements. The share repurchase program may be increased, suspended or discontinued at any time. | On September 26, 2011, the Company announced that its Board of Directors had increased the authorization of the share repurchase program previously announced on February 24, 2011 of up to $100 million to up to $400 million. The share repurchase program is discretionary and has no expiration date. Subject to applicable law, the Company may repurchase shares through forward stock repurchase agreements, accelerated stock buyback programs, directly in the open market, in privately negotiated transactions, or pursuant to derivative instruments or plans complying with SEC Rule 10b5-1, among other types of transactions and arrangements. Additionally, share repurchases are subject to applicable limitations under the Senior Secured Credit Facilities, which as of December 31, 2011, permitted share repurchases totaling approximately $280 million, after giving effect to the $100 million forward stock repurchase plan pre-funded in November 2011. The New Revolving Credit Facility contains limitations on share repurchases. See Note 8 for further discussion. Although payments were funded in 2011 for share repurchases under the forward stock repurchase agreement described below, no shares were repurchased under the share repurchase program as of December 31, 2011. | |||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2013 | $ | (109.8 | ) | $ | 102.7 | $ | (19.4 | ) | $ | — | $ | (0.4 | ) | $ | (26.9 | ) | ||||||||||||||||||||||||||||||
During the three months ended September 30, 2012, the Company repurchased 22,494 shares or approximately $1.8 million of its common stock under the share repurchase program at an average price of $79.74 per share. During the nine months ended September 30, 2012, the Company repurchased 1,821,137 shares or approximately $129.1 million ($100 million of which was pre-funded in November 2011 under a forward stock repurchase agreement) of its common stock under this share repurchase program at an average price of $70.91 per share. As of September 30, 2012, approximately $271 million remained available for further purchases of the Company's common stock under this share repurchase program. Share repurchases are subject to applicable limitations under the Revolving Credit Facility, which as of September 30, 2012, permitted additional share repurchases totaling approximately $344 million. | On November 3, 2011, the Company entered into and pre-funded a forward stock repurchase agreement with Goldman Sachs & Co. ("Goldman") under which the Company agreed to acquire $100 million of Company common stock. The Company currently expects to repurchase shares in 2012 under the remaining authorization of the share repurchase program. The share repurchase program may be increased, suspended or discontinued at any time. | |||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) before reclassification | 0.3 | (55.5 | ) | — | 2.1 | 0.1 | (53.0 | ) | ||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | On February 7, 2012, the Company settled the $100 million forward stock repurchase agreement that was executed on November 3, 2011 and acquired 1,451,193 shares of common stock at an average share price of approximately $68.91. | |||||||||||||||||||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income | 5.1 | 1.5 | — | — | — | 6.6 | The components of accumulated other comprehensive income (loss) are as follows: | Shareholder Rights Plan | ||||||||||||||||||||||||||||||||||||||
On May 18, 2011, the Company adopted a shareholder rights plan (the "Rights Plan") under which the Company's shareholders will receive rights to purchase shares of a new series of preferred stock in certain circumstances. Under the provisions of the Rights Plan, which has an expiration date of May 30, 2012, the rights will be exercisable if a person or group, without the Company's approval, acquires 20% or more of the Company's common stock or announces a tender offer which results in the ownership of 20% or more of the Company's common stock. The rights also will be exercisable if a person or group that already owns 20% or more of the Company's common stock, without the Company's approval, acquires any additional shares. If the rights become exercisable, all rights holders (other than the person triggering the rights) will be entitled to acquire the Company's common stock at a 50% discount. | ||||||||||||||||||||||||||||||||||||||||||||||
Net current period other comprehensive income (loss) | 5.4 | (54.0 | ) | — | 2.1 | 0.1 | (46.4 | ) | Interest Rate | Foreign | Accumulated | |||||||||||||||||||||||||||||||||||
Swap | Currency | Other | On February 17, 2012, the Company extended the Rights Plan for one year, which now expires on May 30, 2013. | |||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2013 | $ | (104.4 | ) | $ | 48.7 | $ | (19.4 | ) | $ | 2.1 | $ | (0.3 | ) | $ | (73.3 | ) | Translation | Comprehensive | ||||||||||||||||||||||||||||
Income (Loss) | Public Stock Offering | |||||||||||||||||||||||||||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||||||||||||||||||||||||
Balance, January 1, 2012 | $ | (8,488 | ) | $ | 871 | $ | (7,617 | ) | In October 2009, the Company entered into a terms agreement with certain underwriters to issue and sell 5,750,000 shares of the Company's common stock, par value $0.01 per share, at a price to the public of $19.25 per share. The Company also granted the underwriters an option to purchase up to an additional 862,500 shares of common stock. The sale was made pursuant to the Company's registration statement on Form S-3 filed with the Securities and Exchange Commission. The sale of the initial shares closed on November 3, 2009, and the sale of the additional shares pursuant to the underwriters' option to purchase additional shares closed on November 11, 2009. The 6,612,500 shares issued resulted in $120.6 million of net proceeds to the Company after deducting underwriting discounts, commissions and expenses of the offering of $6.6 million. | |||||||||||||||||||||||||||||||||||||
Pension and Other Post-Employment Benefits | Foreign Currency Items | Unrealized Losses on Terminated Net Investment Hedges | Unrealized Gains on Available for Sale Securities | Other | Accumulated Other Comprehensive Loss | Interest rate swap, net of tax | 8,488 | — | 8,488 | |||||||||||||||||||||||||||||||||||||
Balance at January 1, 2012 | $ | (99.6 | ) | $ | 91.3 | $ | (19.4 | ) | $ | 0.3 | $ | (1.0 | ) | $ | (28.4 | ) | Foreign currency translation adjustment | — | 5,491 | 5,491 | Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||||||||
Other comprehensive income (loss) before reclassification | — | (16.5 | ) | — | 3.1 | 0.1 | (13.3 | ) | Balance, September 30, 2012 | $ | — | $ | 6,362 | $ | 6,362 | The components of accumulated other comprehensive income (loss) are as follows: | ||||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income | 3.7 | — | — | — | — | 3.7 | The cash flow hedge amount deferred into AOCI is related to the derivatives used to manage the interest rate risk, associated with the Company's vehicle-related debt, which was terminated and is being recognized into earnings along with the interest payments the derivatives were designated to hedge. See Note 8 for further discussion. | Interest Rate | Foreign | Accumulated | ||||||||||||||||||||||||||||||||||||
SWAP | Currency | Other | ||||||||||||||||||||||||||||||||||||||||||||
Translation | Comprehensive | |||||||||||||||||||||||||||||||||||||||||||||
Net current period Other comprehensive income (loss) | 3.7 | (16.5 | ) | — | 3.1 | 0.1 | (9.6 | ) | Income (Loss) | |||||||||||||||||||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2012 | $ | (95.9 | ) | $ | 74.8 | $ | (19.4 | ) | $ | 3.4 | $ | (0.9 | ) | $ | (38.0 | ) | Balance, January 1, 2009 | $ | (32,952 | ) | $ | 3,564 | $ | (29,388 | ) | |||||||||||||||||||||
Interest rate swap and cap adjustment, net of tax | 8,662 | — | 8,662 | |||||||||||||||||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) to earnings during the three-month and six-month periods ended June 30, 2013 and 2012 were as follows (in millions of dollars): | Foreign currency translation adjustment | — | 2,352 | 2,352 | ||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2009 | (24,290 | ) | 5,916 | (18,374 | ) | |||||||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | Statement of Operations Captions | Interest rate swap and cap adjustment, net of tax | 5,543 | — | 5,543 | ||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | Foreign currency translation adjustment | — | 502 | 502 | |||||||||||||||||||||||||||||||||||||||
Pension and other postretirement benefit plans | ||||||||||||||||||||||||||||||||||||||||||||||
Amortization of actuarial losses(1) | $ | 4 | $ | 3.2 | $ | 8.3 | $ | 6 | Selling, general and administrative | Balance, December 31, 2010 | (18,747 | ) | 6,418 | (12,329 | ) | |||||||||||||||||||||||||||||||
Interest rate swap and cap adjustment, net of tax | 10,259 | — | 10,259 | |||||||||||||||||||||||||||||||||||||||||||
Tax provision | (1.5 | ) | (1.2 | ) | (3.2 | ) | (2.3 | ) | Foreign currency translation adjustment | — | (5,547 | ) | (5,547 | ) | ||||||||||||||||||||||||||||||||
Net of tax | $ | 2.5 | $ | 2 | $ | 5.1 | $ | 3.7 | ||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2011 | $ | (8,488 | ) | $ | 871 | $ | (7,617 | ) | ||||||||||||||||||||||||||||||||||||||
Foreign Currency Items(2) | $ | 1.5 | $ | — | $ | 1.5 | $ | — | Other Income | |||||||||||||||||||||||||||||||||||||
Total reclassifications for the period | $ | 4 | $ | 2 | $ | 6.6 | $ | 3.7 | ||||||||||||||||||||||||||||||||||||||
-1 | Included in the computation of net periodic pension / postretirement expenses (see Note 9—Employee Retirement Benefits). | |||||||||||||||||||||||||||||||||||||||||||||
-2 | Tax amounts are included in "Provision for taxes on income" in the consolidation statements of operations. |
COMMITMENTS_AND_CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - DOLLAR THRIFTY | 6 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | ||||||||||||
Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | ||||||||||||||
COMMITMENTS AND CONTINGENCIES | Contingencies and Off-Balance Sheet Commitments | Contingencies and Off-Balance Sheet Commitments | 12. COMMITMENTS AND CONTINGENCIES | 14. COMMITMENTS AND CONTINGENCIES | |||||||||||
Off-Balance Sheet Commitments | Legal Proceedings | ||||||||||||||
As of June 30, 2013 and December 31, 2012, the following guarantees (including indemnification commitments) were issued and outstanding: | From time to time we are a party to various legal proceedings. Other than with respect to the aggregate claims for public liability and property damage pending against us, management does not believe that any of the matters resolved, or pending against us, during 2012 are material to us and our subsidiaries taken as a whole. While we have accrued a liability with respect to claims for public liability and property damage of $332.2 million at December 31, 2012, management, based on the advice of legal counsel, does not believe any of the other pending matters described below are material. We have summarized below, for purposes of providing background, various legal proceedings to which we were and/or are a party during 2012 or the period after December 31, 2012 but before the filing of this Annual Report. In addition to the following, various other legal actions, claims and governmental inquiries and proceedings are pending or may be instituted or asserted in the future against us and our subsidiaries. As previously disclosed, on June 15, 2011 we received a subpoena from the staff of the Securities and Exchange Commission, or "SEC," seeking production of documents related to our proposed business combination with Dollar Thrifty. On February 14, 2013, we were informed by the staff that the investigation has been completed and that no action was taken by the staff or the SEC. | There have been no material changes to the Commitments and Contingencies Note 14 of the Company's audited consolidated financial statements contained elsewhere in this prospectus, with the exception of the following: | Concessions and Operating Leases | ||||||||||||
Indemnification Obligations | |||||||||||||||
In the ordinary course of business, we execute 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. We regularly evaluate the probability of having to incur costs associated with these indemnification obligations and have accrued for expected losses that are probable and estimable. The types of indemnification obligations for which payments are possible include the following: | 1 | Hertz Equipment Rental Corporation, or “HERC,” Loss Damage Waiver | Vehicle Insurance Reserves | The Company has certain concession agreements principally with airports throughout the U.S. and Canada. Typically, these agreements provide airport terminal counter space in return for a minimum rent. In many cases, the Company's subsidiaries are also obligated to pay insurance and maintenance costs and additional rents generally based on revenues earned at the location. Certain of the airport locations are operated by franchisees who are obligated to make the required rent and concession fee payments under the terms of their franchise arrangements with the Company's subsidiaries. | |||||||||||
Sponsors; Directors | On August 15, 2006, Davis Landscape, Ltd., individually and on behalf of all others similarly situated, filed a complaint against HERC in the United States District Court for the District of New Jersey. In November 2006, the complaint was amended to add another plaintiff, Miguel V. Pro, and more claims. The Davis Landscape matter purports to be a nationwide class action on behalf of all persons and business entities who rented equipment from HERC and who paid a Loss Damage Waiver, or “LDW,” or an Environmental Recovery Fee, or “ERF.” The plaintiffs seek a declaratory judgment and injunction prohibiting HERC from engaging in acts with respect to the LDW and ERF charges that violate the New Jersey Consumer Fraud Act and claim that the charges violate the Uniform Commercial Code. The plaintiffs also seek an unspecified amount of compensatory damages with the return of all LDW and ERF charges paid, attorneys' fees and costs as well as other damages. The court has granted class certification, denied our motion for summary judgment and the case is in the discovery stages. In February 2012, we filed separate motions for partial summary judgment on the LDW and ERF claims and we filed a motion to decertify the class. In June 2012, the judge denied our motion for partial summary judgment on the LDW claim and, in July 2012, the judge granted our motion for partial summary judgment on the ERF claim. The court also entered an order referring the case to mediation by private consent of the parties. We have continued to work through the mediator and in direct discussions with plaintiffs’ counsel on an acceptable settlement of this litigation and have accrued our best estimate of the ultimate cost which is not material to our financial condition. | ||||||||||||||
We have entered into customary indemnification agreements with Hertz Holdings, the Sponsors and Hertz Holdings' stockholders affiliated with the Sponsors, pursuant to which Hertz Holdings and we will indemnify the Sponsors, Hertz Holdings' stockholders affiliated with the Sponsors and their respective affiliates, directors, officers, partners, members, employees, agents, representatives and controlling persons, against certain liabilities arising out of performance of a consulting agreement with Hertz Holdings and each of the Sponsors and certain other claims and liabilities, including liabilities arising out of financing arrangements or securities offerings. We do not believe that these indemnifications are reasonably likely to have a material impact on us. Hertz Holdings has entered into indemnification agreements with each of its directors. | The Company records reserves for its public liability and property damage exposure using actuarially-based loss estimates, which are updated semi-annually in June and December of each year. In June 2011, the Company began semi-annual updates for supplemental liability insurance, as such reserves had been previously updated on an annual basis in December. As a result of favorable overall claims loss development, the Company recorded favorable insurance reserve adjustments, which effectively represents revision to previous estimates of vehicle insurance charges, of $2.5 million for the nine months ended September 30, 2012 and $10.6 million for the nine months ended September 30, 2011. | The Company's subsidiaries operate from various leased premises under operating leases with terms up to 30 years. Some of the leases contain renewal options. Certain leases include contingent rental amount based on a percentage of the Company's revenue or gross receipts as defined in the lease agreement. | |||||||||||||
Environmental | 2 | Concession Fee Recoveries | |||||||||||||
We have 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 we may be held responsible could be substantial. The probable expenses that we expect to incur for such matters have been accrued, and those expenses are reflected in our condensed consolidated financial statements. As of June 30, 2013 and December 31, 2012, the aggregate amounts accrued for environmental liabilities including liability for environmental indemnities, reflected in our condensed consolidated balance sheets in "Accrued liabilities" were $2.6 million and $2.6 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 we ultimately may be responsible cannot be reasonably estimated because of uncertainties with respect to factors such as our 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). | On October 13, 2006, Janet Sobel, Daniel Dugan, PhD. and Lydia Lee, individually and on behalf of all others similarly situated v. The Hertz Corporation and Enterprise Rent-A-Car Company, or “Enterprise,” was filed in the United States District Court for the District of Nevada. The plaintiffs agreed to not pursue claims against Enterprise initially and the case only proceeded against Hertz. The Sobel case purports to be a nationwide class action on behalf of all persons who rented cars from Hertz at airports in Nevada and were separately charged airport concession recovery fees by Hertz as part of their rental charges. The plaintiffs seek an unspecified amount of compensatory damages, restitution of any charges found to be improper and an injunction prohibiting Hertz from quoting or charging those airport fees that are alleged not to be allowed by Nevada law. The complaint also seeks attorneys' fees and costs. Relevant documents were produced, depositions were taken and pre-trial motions were filed. After the court rendered a mixed ruling on the parties' cross‑motions for summary judgment and after the Lydia Lee case was refiled against Enterprise, the parties engaged in mediation which resulted in a proposed settlement. Although the court tentatively approved the settlement in November 2010, the court denied the plaintiffs' motion for final approval of the proposed settlement in May 2011. Since that time, the plaintiffs filed a motion for class certification-which we opposed-and discovery has commenced again. A separate action is proceeding against Enterprise, National and Alamo. In May 2012, all briefing was completed on the two outstanding issues—unjust enrichment and damages. The briefing included expert reports as submitted by both sides. In October 2012, the court held a hearing on the plaintiffs’ motion for class certification. The court has since entered a stay order and the parties will again be engaging in mediation. | Contingencies | Expenses incurred under operating leases and concessions were as follows: | ||||||||||||
Legal Proceedings | |||||||||||||||
From time to time we are a party to various legal proceedings. We are currently a defendant in numerous actions and have received numerous claims on which actions have not yet been commenced for public liability and property damage arising from the operation of motor vehicles and equipment rented from us and our licensees. The obligation for public liability and property damage on self-insured U.S. and international vehicles and equipment, as stated on our balance sheet, 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 costs. At June 30, 2013 and December 31, 2012 our liability recorded for public liability and property damage matters was $327.5 million and $332.2 million, respectively. We believe that our analysis is based on the most relevant information available, combined with reasonable assumptions, and that we may prudently rely on this information to determine the estimated liability. We note the liability is subject to significant uncertainties. The adequacy of the liability reserve is regularly monitored based on evolving accident claim history and insurance related state legislation changes. If our estimates change or if actual results differ from these assumptions, the amount of the recorded liability is adjusted to reflect these results. | 3 | Telephone Consumer Protection Act | The following recent developments pertaining to legal proceedings described in the Company's Form 10-K are furnished on a supplemental basis: | ||||||||||||
For a detailed description of certain of our legal proceedings please see Note 12 of the Notes to our audited annual consolidated financial statements included in our Form 10-K under the caption "Item 8—Financial Statements and Supplementary Data." | On May 3, 2007, Fun Services of Kansas City, Inc., individually and as the representative of a class of similarly‑situated persons, v. Hertz Equipment Rental Corporation was commenced in the District Court of Wyandotte County, Kansas. The case was subsequently transferred to the District Court of Johnson County, Kansas. The Fun Services matter purports to be a class action on behalf of all persons in Kansas and throughout the United States who, on or after four years prior to the filing of the action, were sent facsimile messages of advertising materials relating to the availability of property, goods or services by HERC and who did not provide express permission for sending such faxes. The plaintiffs seek an unspecified amount of compensatory damages, attorney's fees and costs. In August 2009, the court issued an order that stayed all activity in this litigation pending a decision by the Kansas Supreme Court in Critchfield Physical Therapy, Inc. v. Taranto Group, Inc., another Telephone Consumer Protection Act case. The Kansas Supreme Court issued its decision in September 2011. Thereafter, the District Court of Johnson County lifted the stay in the Fun Services case and issued a scheduling order that addresses class certification discovery. In February 2012, HERC filed a Notice of Removal with the U.S. District Court for the District of Kansas seeking to remove the case to federal court based on federal question jurisdiction. In March 2012, the federal magistrate entered an order requiring the parties to engage in mediation and report back to her regarding their progress by June 2012. In June 2012, a mediation was held and as a result of the mediation, the parties reached an agreement in principle to settle this class action. A settlement that addresses compensation to class members, class counsel fees and the claims process was finalized by the parties’ counsel in January 2013. The court issued an order preliminarily approving the settlement in January 2013 and the final approval hearing is currently scheduled for April 2013. We have accrued our best estimate of the ultimate cost, which is not material to our financial condition. | Year Ended December 31, | |||||||||||||
The following recent developments pertaining to legal proceedings described in our Form 10-K are furnished on a supplemental basis: | On March 2, 2012, the appellate court in Susan and Jeffrey Dillon v. DTG Operations, Inc. d/b/a Thrifty Car Rental (Case No. 09CH34874, Cook County Circuit Court, Chancery Division, Illinois) upheld the lower court's ruling in favor of the Company. The Plaintiffs did not seek a rehearing or further appeals, and this action has been dismissed. | 2011 | 2010 | 2009 | |||||||||||
In Davis Landscape, Ltd., et al. v. Hertz Equipment Rental Corporation, the Court issued a Final Approval Order and Judgment in June 2013 giving final approval to the proposed class settlement that the court had preliminarily approved in March 2013. We have accrued our best estimate of the ultimate cost of the proposed class settlement which is not material to our financial condition, results of operations or cash flows. | 4 | California Tourism Assessments | (In Thousands) | ||||||||||||
In Fun Services of Kansas City, Inc., et al. v. Hertz Equipment Rental Corporation, the court issued a Final Approval Order in June 2013 giving final approval to the proposed class settlement which the court had preliminarily approved in January 2013. We have accrued our best estimate of the ultimate cost of the settlement, which is not material to our financial condition, results of operations or cash flows. | We are currently a defendant in a proceeding that purports to be a class action brought by Michael Shames and Gary Gramkow against The Hertz Corporation, Dollar Thrifty Automotive Group, Inc., Avis Budget Group, Inc., Vanguard Car Rental USA, Inc., Enterprise Rent-A-Car Company, Fox Rent A Car, Inc., Coast Leasing Corp., The California Travel and Tourism Commission, and Caroline Beteta. | On September 20, 2012, plaintiffs in Henzel v. Dollar Thrifty Automotive Group, Inc., et al. (Consolidated Case No. CJ-2010-02761, Dist. Ct. Tulsa County, Oklahoma) filed a dismissal without prejudice and have indicated they will not seek recovery of attorney fees. | Rent | $ | 48,682 | $ | 47,915 | $ | 49,543 | ||||||
In March 2013, the court in Janet Sobel, et al. v. The Hertz Corporation granted, in part, the plaintiffs' motion for partial summary judgment with respect to restitution and granted the plaintiffs' motion for class certification, while denying the Company's motion for partial summary judgment. The court further indicated that the plaintiffs are entitled to prejudgment interest from the date of the plaintiffs' first amended complaint. A judgment has still not been entered in the case and there are expected to be further proceedings before the district court. The amount of a judgment could potentially exceed $40 million. The Company intends to appeal or seek other appropriate relief and believes that the court's liability, damages and class certification findings will be reversed. We continue to believe the outcome of this case will not be material to our financial condition, results of operations or cash flows. | Originally filed in November of 2007, the action is pending in the United States District Court for the Southern District of California, and plaintiffs claim to represent a class of individuals or entities that purchased rental car services from a defendant at airports located in California after January 1, 2007. Plaintiffs allege that the defendants agreed to charge consumers a 2.5% tourism assessment and not to compete with respect to this assessment, while misrepresenting that this assessment is owed by consumers, rather than the rental car defendants, to the California Travel and Tourism Commission, or the “CTTC.” Plaintiffs also allege that defendants agreed to pass through to consumers a fee known as the Airport Concession Fee, which fee had previously been required to be included in the rental car defendants' individual base rates, without reducing their base rates. Based on these allegations, the amended complaint seeks treble damages, disgorgement, injunctive relief, interest, attorneys' fees and costs. Plaintiffs dropped their claims against Caroline Beteta. Plaintiffs' claims against the rental car defendants have been dismissed, except for the federal antitrust claim. In June 2010, the United States Court of Appeals for the Ninth Circuit affirmed the dismissal of the plaintiffs' antitrust case against the CTTC as a state agency immune from antitrust complaint because the California Legislature foresaw the alleged price‑fixing conspiracy that was the subject of the complaint. The plaintiffs subsequently filed a petition with the Ninth Circuit seeking a rehearing and that petition was granted. In November 2010, the Ninth Circuit withdrew its June opinion and instead held that state action immunity was improperly invoked. The Ninth Circuit reinstated the plaintiffs' antitrust claims and remanded the case to the district court for further proceedings. In May 2012, the district court issued an order preliminarily approving the settlement of this action; certifying a settlement class; certifying a class representative and lead counsel; and providing for class notice. In October 2012, the court held a final approval hearing. In November 2012, the court issued an order of final approval of the settlement of this action. One of the objectors to the settlement has filed a notice of appeal of this order with the United States Court of Appeals for the Ninth Circuit. We have accrued our best estimate of the ultimate cost which is not material to our financial condition. | Concession expenses: | |||||||||||||
Aside from the above mentioned, none of the other legal proceedings described in our Form 10-K have experienced any material changes. | On September 21, 2012, plaintiffs in Re: Dollar Thrifty Shareholder Litigation (Consolidated Case No. 5458-VCS, Delaware Court of Chancery) filed a stipulation and proposed order and proposed final judgment, which, if approved by the Court upon notice to the certified class, would dismiss the case as moot and without payment of attorney fees. The hearing on the proposed dismissal is scheduled in November 2012. | Minimum fees | 107,095 | 102,080 | 101,938 | ||||||||||
In addition to the above mentioned and those described in our Form 10-K or in our other filings with SEC, various other legal actions, claims and governmental inquiries and proceedings are pending or may be instituted or asserted in the future against us and our subsidiaries. Other than with respect to the aggregate claims for public liability and property damage pending against us, management, based on the advice of legal counsel, does not believe that any of the matters resolved, or pending against us, are material to us and our subsidiaries taken as a whole. | 5 | Public Liability and Property Damage | Contingent fees | 27,144 | 31,711 | 32,263 | |||||||||
We have established reserves for matters where we believe that the losses are probable and reasonably estimated. Other than with respect to the aggregate reserve established for claims for public liability and property damage, none of those reserves are material. For matters where we have not established a reserve, 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 the outcome of the individual litigated matters is not predictable with assurance. It is possible that certain of the actions, claims, inquiries or proceedings, including those discussed in our Form 10-K or in our other filings with SEC, could be decided unfavorably to us or any of our 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 our consolidated financial condition, results of operations or cash flows in any particular reporting period. | We are currently a defendant in numerous actions and have received numerous claims on which actions have not yet been commenced for public liability and property damage arising from the operation of motor vehicles and equipment rented from us. The obligation for public liability and property damage on self-insured U.S. and international vehicles and equipment, as stated on our balance sheet, 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. At December 31, 2012 and December 31, 2011 our liability recorded for public liability and property damage matters was $332.2 million and $281.5 million, respectively. We believe that our analysis is based on the most relevant information available, combined with reasonable assumptions, and that we may prudently rely on this information to determine the estimated liability. We note the liability is subject to significant uncertainties. The adequacy of the liability reserve is regularly monitored based on evolving accident claim history and insurance related state legislation changes. If our estimates change or if actual results differ from these assumptions, the amount of the recorded liability is adjusted to reflect these results. | Aside from the above and the item discussed in Note 15, none of the other legal proceedings described in the Company's Form 10-K have experienced material changes. | |||||||||||||
We intend to assert that we have meritorious defenses in the foregoing matters and we intend to defend ourselves vigorously. | 182,921 | 181,706 | 183,744 | ||||||||||||
We have established reserves for matters where we believe that the losses are probable and reasonably estimated, including for various of the matters set forth above. Other than with respect to the aggregate reserves established for claims for public liability and property damage, none of those reserves are material. For matters, including those described above, where we have not established a reserve, 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 the outcome of the individual litigated matters is not predictable with assurance. It is possible that certain of the actions, claims, inquiries or proceedings, including those discussed above, could be decided unfavorably to us or any of our 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 our consolidated financial condition, results of operations or cash flows in any particular reporting period. | Various legal actions, claims and governmental inquiries and proceedings have been in the past, or may be in the future, asserted or instituted against the Company, including other purported class actions or proceedings relating to the Hertz transaction terminated in October 2010 and some that may demand large monetary damages or other relief which could result in significant expenditures. The Company is also subject to potential liability related to environmental matters. The Company establishes reserves for litigation and environmental matters when the loss is probable and reasonably estimable. It is reasonably possible that the final resolution of some of these matters may require the Company to make expenditures in excess of established reserves, over an extended period of time and in a range of amounts that cannot be reasonably estimated. The term "reasonably possible" is used herein to mean that the chance of a future transaction or event occurring is more than remote but less than probable. The Company evaluates developments in its legal matters that could affect the amount of previously accrued reserves and makes adjustments as appropriate. Significant judgment is required to determine both likelihood of a further loss and the estimated amount of the loss. With respect to outstanding litigation and environmental matters, based on current knowledge, the Company believes that the amount or range of reasonably possible loss will not, either individually or in the aggregate, have a material adverse effect on its business or consolidated financial statements. However, the outcome of such legal matters is inherently unpredictable and subject to significant uncertainties. | Less sublease rental income | (498 | ) | (574 | ) | (785 | ) | |||||||
Off-Balance Sheet Commitments | |||||||||||||||
As of December 31, 2012 and December 31, 2011, the following guarantees (including indemnification commitments) were issued and outstanding. | Other | Total | $ | 182,423 | $ | 181,132 | $ | 182,959 | |||||||
Indemnification Obligations | |||||||||||||||
In the ordinary course of business, we execute 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. We regularly evaluate the probability of having to incur costs associated with these indemnification obligations and have accrued for expected losses that are probable and estimable. The types of indemnification obligations for which payments are possible include the following: | In June 2012, the Company executed a vehicle supply agreement with Chrysler Group LLC ("Chrysler Group") for a three-year term beginning with program year 2013 (August 1, 2012) and ending at the end of program year 2015 (July 31, 2015), that will allow the Company to source a portion of its vehicle purchases, with certain minimum volumes, through Chrysler Group. Volume requirements may be modified by mutual agreement between the Company and Chrysler Group. | ||||||||||||||
Sponsors; Directors | Future minimum rentals and fees under noncancelable operating leases and the Company's obligations for minimum airport concession fees at December 31, 2011 are presented in the following table: | ||||||||||||||
We have entered into customary indemnification agreements with Hertz Holdings, the Sponsors and Hertz Holdings' stockholders affiliated with the Sponsors, pursuant to which Hertz Holdings and Hertz will indemnify the Sponsors, Hertz Holdings' stockholders affiliated with the Sponsors and their respective affiliates, directors, officers, partners, members, employees, agents, representatives and controlling persons, against certain liabilities arising out of performance of a consulting agreement with Hertz Holdings and each of the Sponsors and certain other claims and liabilities, including liabilities arising out of financing arrangements or securities offerings. Hertz Holdings also entered into indemnification agreements with each of its directors. We do not believe that these indemnifications are reasonably likely to have a material impact on us. | |||||||||||||||
Environmental | |||||||||||||||
We have 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 we may be held responsible could be substantial. The probable expenses that we expect to incur for such matters have been accrued, and those expenses are reflected in our condensed consolidated financial statements. As of December 31, 2012 and December 31, 2011, the aggregate amounts accrued for environmental liabilities including liability for environmental indemnities, reflected in our condensed consolidated balance sheets in "Accrued liabilities" were $2.6 million and $1.5 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 we ultimately may be responsible cannot be reasonably estimated because of uncertainties with respect to factors such as our 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). | Company-Owned | Operating | Total | ||||||||||||
Stores | Leases | ||||||||||||||
Concession Fees | |||||||||||||||
(In Thousands) | |||||||||||||||
2012 | $ | 98,351 | $ | 40,429 | $ | 138,780 | |||||||||
2013 | 85,594 | 32,866 | 118,460 | ||||||||||||
2014 | 62,120 | 25,323 | 87,443 | ||||||||||||
2015 | 43,908 | 20,221 | 64,129 | ||||||||||||
2016 | 37,088 | 17,290 | 54,378 | ||||||||||||
Thereafter | 130,771 | 48,333 | 179,104 | ||||||||||||
457,832 | 184,462 | 642,294 | |||||||||||||
Less sublease rental income | — | (895 | ) | (895 | ) | ||||||||||
$ | 457,832 | $ | 183,567 | $ | 641,399 | ||||||||||
Vehicle Insurance Reserves | |||||||||||||||
The Company is self insured for a portion of vehicle insurance claims. In 2011, 2010 and 2009, the Company retained risk of loss up to $7.5 million, in each year, per occurrence for public liability and property damage claims, including third-party bodily injury and property damage. The Company maintains insurance for losses above these levels. The Company retains the risk of loss on SLI policies sold to vehicle rental customers. | |||||||||||||||
The Company records reserves for its public liability and property damage exposure using actuarially-based loss estimates, which are updated semi-annually in June and December of each year. In June 2011, the Company began semi-annual updates for SLI, as such reserves had been previously updated on an annual basis in December. As a result of favorable overall claims loss development experienced in 2011 and 2010, the Company recorded favorable insurance reserve adjustments, which effectively represents revision to previous estimates of vehicle insurance charges, of $32.2 million and $13.4 million during 2011 and 2010, respectively. This favorable claims development is driven by changes in loss development factors as a result of favorable claims development trends resulting from specific actions taken by the Company to lower its overall insurance costs. Those steps included, among others, closing a significant number of local market locations and raising acceptable credit scores for eligible customers in order to reduce the likelihood of adverse selection in certain markets. Additionally, the Company has implemented drivers' license validation procedures and requires examinations under oath in order to reduce the risk of fraud and personal injury claims in certain markets. | |||||||||||||||
The accrual for Vehicle Insurance Reserves includes amounts for incurred and incurred but not reported losses. Such liabilities are based on actuarially determined estimates and management believes that the amounts accrued are adequate. At December 31, 2011 and 2010, the public liability and property damage amounts have been discounted at 0.4% and 1.0% (assumed risk free rate), respectively, based upon the actuarially determined estimated timing of payments to be made in future years. Discounting resulted in reducing the accrual for public liability and property damage by $0.4 million and $1.3 million at December 31, 2011 and 2010, respectively. SLI amounts are not discounted. Estimated future payments of Vehicle Insurance Reserves as of December 31, 2011 are as follows (in thousands): | |||||||||||||||
2012 | $ | 21,220 | |||||||||||||
2013 | 15,314 | ||||||||||||||
2014 | 7,037 | ||||||||||||||
2015 | 4,617 | ||||||||||||||
2016 | 2,995 | ||||||||||||||
Thereafter | 3,508 | ||||||||||||||
Aggregate undiscounted public liability and property damage | 54,691 | ||||||||||||||
Effect of discounting | (375 | ) | |||||||||||||
Public liability and property damage, net of discount | 54,316 | ||||||||||||||
Supplemental liability insurance | 32,199 | ||||||||||||||
Total vehicle insurance reserves | $ | 86,515 | |||||||||||||
Contingencies | |||||||||||||||
Various class action complaints relating to the now terminated proposed merger transaction with Hertz Global Holdings, Inc. ("Hertz") have been filed in Oklahoma state court, Oklahoma federal court, and Delaware Chancery Court against the Company, its directors, and Hertz by various plaintiffs, for themselves and on behalf of the Company's stockholders, excluding defendants and their affiliates. These complaints allege that the consideration the Company's stockholders would have received in connection with the proposed transaction with Hertz is inadequate and that the Company's directors breached their fiduciary duties to stockholders in negotiating and approving the merger agreement. These complaints also allege that the proxy materials that were sent to the Company's stockholders to approve the merger agreement are materially false and misleading. The cases and their current status are as follows: 1) Henzel v. Dollar Thrifty Automotive Group, Inc., et al. (Consolidated Case No. CJ-2010-02761, Dist. Ct. Tulsa County, Oklahoma)—this case has not been dismissed but is currently inactive and 2) In Re: Dollar Thrifty Shareholder Litigation (Consolidated Case No. 5458-VCS, Delaware Court of Chancery)—on October 18, 2011, plaintiffs sought permission to amend their pleadings to assert additional claims that members of the Company's board of directors (the "Board") breached their fiduciary duties concerning the following matters: (a) the Board's response to a merger proposal by Avis Budget Group, Inc. ("Avis Budget") in September 2010; (b) the Board's use of defensive measures, including the adoption of a poison pill, in response to the Exchange Offer made by Hertz; (c) the Board's response to the failure of Hertz to submit an improved final offer meeting certain Board criteria by October 10, 2011; and (d) the Board's alleged failure to make full material disclosures to the Company's stockholders concerning the Hertz offer, the Company's stand-alone plan, and the Company's negotiations with Hertz regarding a business combination. The court has not ruled on the plaintiffs' request to amend. On November 1, 2011, the plaintiffs advised the court that the parties have agreed to stay further activity pending the outcome of the Hertz antitrust review process. | |||||||||||||||
The Company is a defendant in several class action lawsuits in California and one in Colorado. The California lawsuits allege that the pass through of the California trade and tourism commission and airport concession fees violate antitrust laws and various other rights and laws by compelling out-of-state visitors to subsidize the passenger car rental tourism assessment program, violation of the California Business and Professions Code breach of contract. The Company has accrued a contingency related to the preliminary settlement. | |||||||||||||||
The Colorado lawsuit alleges violation of the Colorado Consumer Protection Act. The lawsuit in Colorado was dismissed with prejudice in July 2010 and the plaintiffs filed a notice of appeal in August 2010. Appellate briefing was completed on May 16, 2011 and oral argument on the appeal occurred on December 6, 2011, and the parties are awaiting a ruling. The Company intends to vigorously defend these matters. Given the inherent uncertainties of litigation, the Company cannot predict the ultimate outcome or reasonably estimate the amount of ultimate loss that may arise from these lawsuits. | |||||||||||||||
Various other legal actions, claims and governmental inquiries and proceedings have been in the past, or may be in the future, asserted or instituted against the Company, including other purported class actions or proceedings relating to the Hertz transaction terminated in October 2010 or a potential acquisition transaction, and some that may demand large monetary damages or other relief which could result in significant expenditures. Litigation is subject to many uncertainties and is inherently unpredictable. The Company is also subject to potential liability related to environmental matters. The Company establishes reserves for litigation and environmental matters when the loss is probable and reasonably estimable. It is reasonably possible that the final resolution of some of these matters may require the Company to make expenditures in excess of established reserves. The term "reasonably possible" is used herein to mean that the chance of a future transaction or event occurring is more than remote but less than probable. The Company evaluates developments in its legal matters that could affect the amount of previously accrued reserves and makes adjustments as appropriate. Significant judgment is required to determine both likelihood of a further loss and the estimated amount of the loss. With respect to outstanding litigation and environmental matters, based on current knowledge, the Company believes that the amount or range of reasonably possible loss will not, either individually or in the aggregate, have a material adverse effect on its business or consolidated financial statements. However, the outcome of such legal matters is inherently unpredictable and subject to significant uncertainties. | |||||||||||||||
Other | |||||||||||||||
On April 4, 2011, the Company and HP Enterprise Services, LLC ("HP") entered into a three and one-half year data processing service agreement (the "Service Agreement"), which requires annual payments of approximately $20 million for 2012 and 2013 and approximately $10 million for 2014. The Company also has a telecommunications contract which will require annual payments totaling $1.2 million for 2012. Additionally, the Company has software and hardware maintenance agreements which require annual payments totaling approximately $2.1 million and $1.5 million for 2012 and 2013, respectively. | |||||||||||||||
In addition to the letters of credit described in Note 8, the Company had letters of credit totaling $4.0 million and $5.5 million at December 31, 2011 and 2010, respectively, which are primarily used to support insurance programs and airport concession obligations in Canada. The Company may also provide guarantees on behalf of franchisees to support compliance with airport concession bids. Non-performance of the obligation by the franchisee would trigger the obligation of the Company. At December 31, 2011, there were no such guarantees on behalf of franchisees. | |||||||||||||||
At December 31, 2011, the Company had outstanding vehicle purchase commitments of approximately $1.3 billion over the next 12 months. | |||||||||||||||
BUSINESS_SEGMENTS_DOLLAR_THRIF
BUSINESS SEGMENTS - DOLLAR THRIFTY | 6 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||||||||||||||||||||||||||||||||||||
Dollar Thrifty Automotive Group Inc. | |||||||||||||||||||||||||||||||||||||||
BUSINESS SEGMENTS | Segment Information | Segment Information | 15. BUSINESS SEGMENTS | ||||||||||||||||||||||||||||||||||||
Our operating segments are aggregated into reportable business segments based primarily upon similar economic characteristics, products, services, customers, and delivery methods. We have identified two reportable segments: rental and leasing of cars, crossovers and light trucks, or "car rental," and rental of industrial, construction, material handling and other equipment, or "equipment rental." Other reconciling items include general corporate assets and expenses, certain interest expense (including net interest on corporate debt), as well as other business activities. Donlen is included in the car rental reportable segment. | Our operating segments are aggregated into reportable business segments based primarily upon similar economic characteristics, products, services, customers, and delivery methods. We have identified two reportable segments: rental and leasing of cars, crossovers and light trucks, or “car rental,” and rental of industrial, construction and material handling equipment, or “equipment rental.” Other reconciling items includes general corporate assets and expenses, certain interest expense (including net interest on corporate debt), as well as other business activities, such as our third party claim management services. | ||||||||||||||||||||||||||||||||||||||
Adjusted pre-tax income is calculated as income before income taxes plus non-cash purchase accounting charges, non-cash debt charges relating to the amortization and write-off of debt financing costs and debt discounts and certain one-time charges and non-operational items. Adjusted pre-tax income is important to management because it allows management to assess operational performance of our business, exclusive of the items mentioned above. It also allows management to assess the performance of the entire business on the same basis as the segment measure of profitability. Management believes that it is important to investors for the same reasons it is important to management and because it allows them to assess our operational performance on the same basis that management uses internally. The contribution of our reportable segments to revenues and adjusted pre-tax income and the reconciliation to consolidated amounts are summarized below (in millions of dollars). | Adjusted pre-tax income (loss) is the measure utilized by management in making decisions about allocating resources to segments and measuring their performance. We believe this measure best reflects the financial results from ongoing operations. Adjusted pre-tax income (loss) is calculated as income (loss) before income taxes plus other reconciling items, non-cash purchase accounting charges, non-cash debt charges and certain one-time charges and non-operational items. The contribution of our reportable segments for the years ended December 31, 2012, 2011 and 2010 is summarized below (in millions of dollars). | The Company's corporate operating structure is based on a functional structure and combines the management of operations and administrative functions for both the Dollar and Thrifty brands. Consistent with this structure, management makes business and operating decisions on an overall company basis. | |||||||||||||||||||||||||||||||||||||
Included in the consolidated financial statements are the following amounts relating to geographic locations: | |||||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, | Years ended December 31, | ||||||||||||||||||||||||||||||||||||||
Revenues | Adjusted Pre-Tax Income | 2012 | 2011 | 2010 | |||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | Revenues | Year Ended December 31, | ||||||||||||||||||||||||||||||||||
Car rental | $ | 2,329.50 | $ | 1,889.60 | $ | 363 | $ | 277.4 | Car rental | $ | 7,633.00 | $ | 7,083.50 | $ | 6,486.20 | 2011 | 2010 | 2009 | |||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||||||||||||||||
Equipment rental | 384.3 | 335 | 74.1 | 42.5 | Equipment rental | 1,385.40 | 1,209.50 | 1,070.10 | Revenues: | ||||||||||||||||||||||||||||||
United States | $ | 1,466,186 | $ | 1,455,958 | $ | 1,466,508 | |||||||||||||||||||||||||||||||||
Total reportable segments | 2,713.80 | 2,224.60 | 437.1 | 319.9 | Other reconciling items | 2.4 | 5.4 | 6.2 | Foreign countries | 82,742 | 81,202 | 79,741 | |||||||||||||||||||||||||||
Other | 0.8 | 0.5 | Total | $ | 9,020.80 | $ | 8,298.40 | $ | 7,562.50 | $ | 1,548,928 | $ | 1,537,160 | $ | 1,546,249 | ||||||||||||||||||||||||
Total | $ | 2,714.60 | $ | 2,225.10 | Adjusted pre-tax income(a) | Long-lived assets: | |||||||||||||||||||||||||||||||||
Car rental | $ | 1,020.10 | $ | 850.2 | $ | 641.9 | United States | $ | 82,588 | $ | 88,433 | $ | 94,606 | ||||||||||||||||||||||||||
Adjustments: | Foreign countries | 1,690 | 1,795 | 1,592 | |||||||||||||||||||||||||||||||||||
Other reconciling items(1) | (116.2 | ) | (79.8 | ) | Equipment rental | $ | 227 | $ | 161.6 | $ | 78 | ||||||||||||||||||||||||||||
$ | 84,278 | $ | 90,228 | $ | 96,198 | ||||||||||||||||||||||||||||||||||
Purchase accounting(2) | (33.1 | ) | (29.0 | ) | Depreciation of revenue earning equipment and lease charges | ||||||||||||||||||||||||||||||||||
Car rental | $ | 1,876.10 | $ | 1,651.40 | $ | 1,594.60 | |||||||||||||||||||||||||||||||||
Non-cash debt charges(3) | (12.1 | ) | (13.9 | ) | Revenues are attributed to geographic regions based on the location of the transaction. Long-lived assets represent property and equipment. | ||||||||||||||||||||||||||||||||||
Equipment rental | 272.1 | 254.3 | 273.5 | ||||||||||||||||||||||||||||||||||||
Restructuring charges | (17.6 | ) | (16.1 | ) | |||||||||||||||||||||||||||||||||||
Total | $ | 2,148.20 | $ | 1,905.70 | $ | 1,868.10 | |||||||||||||||||||||||||||||||||
Restructuring related charges(4) | (8.6 | ) | (5.0 | ) | |||||||||||||||||||||||||||||||||||
Depreciation of property and equipment | |||||||||||||||||||||||||||||||||||||||
Integration expenses(5) | (9.2 | ) | — | Car rental | $ | 126.9 | $ | 116.1 | $ | 112.3 | |||||||||||||||||||||||||||||
Derivative gains (losses)(6) | (0.1 | ) | — | Equipment rental | 34.1 | 33.7 | 34.3 | ||||||||||||||||||||||||||||||||
Acquisition related costs | (9.1 | ) | (4.5 | ) | Other reconciling items | 11.6 | 8.2 | 7.4 | |||||||||||||||||||||||||||||||
Other(7) | (5.4 | ) | — | Total | $ | 172.6 | $ | 158 | $ | 154 | |||||||||||||||||||||||||||||
Income before income taxes | $ | 225.7 | $ | 171.6 | Amortization of other intangible assets | ||||||||||||||||||||||||||||||||||
Car rental | $ | 41.7 | $ | 32.7 | $ | 30.2 | |||||||||||||||||||||||||||||||||
Equipment rental | 40.6 | 35.8 | 33.4 | ||||||||||||||||||||||||||||||||||||
Six Months Ended June 30, | Other reconciling items | 1.8 | 1.5 | 1.1 | |||||||||||||||||||||||||||||||||||
Revenues | Adjusted Pre-Tax Income | ||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | Total | $ | 84.1 | $ | 70 | $ | 64.7 | |||||||||||||||||||||||||||||
Car rental | $ | 4,414.30 | $ | 3,547.90 | $ | 571.4 | $ | 369 | |||||||||||||||||||||||||||||||
Interest expense | |||||||||||||||||||||||||||||||||||||||
Equipment rental | 735.4 | 637.1 | 119.9 | 68.4 | Car rental | $ | 316.3 | $ | 333.1 | $ | 401.3 | ||||||||||||||||||||||||||||
Total reportable segments | 5,149.70 | 4,185.00 | 691.3 | 437.4 | Equipment rental | 52 | 45.3 | 39.4 | |||||||||||||||||||||||||||||||
Other | 1.5 | 1.1 | Other reconciling items | 229.5 | 271.9 | 285.8 | |||||||||||||||||||||||||||||||||
Total | $ | 5,151.20 | $ | 4,186.10 | Total | $ | 597.8 | $ | 650.3 | $ | 726.5 | ||||||||||||||||||||||||||||
Adjustments: | |||||||||||||||||||||||||||||||||||||||
Other reconciling items(1) | (219.5 | ) | (161.7 | ) | |||||||||||||||||||||||||||||||||||
Purchase accounting(2) | (66.8 | ) | (53.0 | ) | |||||||||||||||||||||||||||||||||||
Years ended December 31, | |||||||||||||||||||||||||||||||||||||||
Non-cash debt charges(3) | (22.1 | ) | (32.6 | ) | 2012 | 2011 | 2010 | ||||||||||||||||||||||||||||||||
Revenue earning equipment and property and equipment | |||||||||||||||||||||||||||||||||||||||
Restructuring charges | (21.3 | ) | (22.8 | ) | Car rental | ||||||||||||||||||||||||||||||||||
Expenditures | $ | 9,118.30 | $ | 9,109.90 | $ | 8,430.10 | |||||||||||||||||||||||||||||||||
Restructuring related charges(4) | (12.8 | ) | (8.3 | ) | |||||||||||||||||||||||||||||||||||
Proceeds from disposals | (7,054.4 | ) | (7,689.4 | ) | (7,432.7 | ) | |||||||||||||||||||||||||||||||||
Integration expenses(5) | (20.0 | ) | — | Net expenditures | $ | 2,063.90 | $ | 1,420.50 | $ | 997.4 | |||||||||||||||||||||||||||||
Acquisition related costs | (11.7 | ) | (11.4 | ) | Equipment rental | ||||||||||||||||||||||||||||||||||
Expenditures | $ | 787.6 | $ | 617.5 | $ | 186.1 | |||||||||||||||||||||||||||||||||
Other(7) | (5.4 | ) | — | ||||||||||||||||||||||||||||||||||||
Proceeds from disposals | (192.3 | ) | (213.8 | ) | (124.3 | ) | |||||||||||||||||||||||||||||||||
Income before income taxes | $ | 311.7 | $ | 147.6 | Net expenditures (proceeds) | $ | 595.3 | $ | 403.7 | $ | 61.8 | ||||||||||||||||||||||||||||
_______________________________________________________________________________ | Other reconciling items | ||||||||||||||||||||||||||||||||||||||
Expenditures | $ | 20.1 | $ | 8.6 | $ | 3.9 | |||||||||||||||||||||||||||||||||
-1 | Represents general corporate expenses, certain interest expense (including net interest on corporate debt), as well as other business activities. | ||||||||||||||||||||||||||||||||||||||
Proceeds from disposals | (16.1 | ) | (1.0 | ) | (0.3 | ) | |||||||||||||||||||||||||||||||||
-2 | Represents the purchase accounting effects of the 2005 sale of all of Hertz's stock on our results of operations relating to increased depreciation and amortization of tangible and intangible assets and accretion of revalued workers' compensation and public liability and property damage liabilities. Also represents the purchase accounting effects of certain subsequent acquisitions on our results of operations relating to increased depreciation and amortization of tangible and intangible assets. | Net expenditures | $ | 4 | $ | 7.6 | $ | 3.6 | |||||||||||||||||||||||||||||||
-3 | Represents non-cash debt charges relating to the amortization and write-off of deferred debt financing costs and debt discounts. | ||||||||||||||||||||||||||||||||||||||
-4 | Represents incremental costs incurred directly supporting our business transformation initiatives. Such costs include transition costs incurred in connection with our business process outsourcing arrangements and incremental costs incurred to facilitate business process re-engineering initiatives that involve significant organization redesign and extensive operational process changes. | As of December 31, | |||||||||||||||||||||||||||||||||||||
2012 | 2011 | ||||||||||||||||||||||||||||||||||||||
-5 | Primarily represents Dollar Thrifty related expenses and adjustments. | Total assets at end of year | |||||||||||||||||||||||||||||||||||||
Car rental | $ | 18,454.20 | $ | 13,037.90 | |||||||||||||||||||||||||||||||||||
-6 | Represents the mark-to-market adjustment on our interest rate caps. | ||||||||||||||||||||||||||||||||||||||
Equipment rental | 3,623.00 | 3,058.90 | |||||||||||||||||||||||||||||||||||||
-7 | Primarily represents expenses related to litigation accruals. | ||||||||||||||||||||||||||||||||||||||
Total assets increased $2,640.8 million from December 31, 2012 to June 30, 2013. The increase was primarily related to an increase in our car rental and equipment rental segments' revenue earning equipment, driven by increased volumes, partly offset by a decrease in fleet receivables within our car rental segment, primarily related to the timing of purchases and sales of revenue earning equipment. | Other reconciling items | 1,213.00 | 1,570.50 | ||||||||||||||||||||||||||||||||||||
Total | $ | 23,290.20 | $ | 17,667.30 | |||||||||||||||||||||||||||||||||||
Revenue earning equipment, net, at end of year | |||||||||||||||||||||||||||||||||||||||
Car rental | $ | 10,710.10 | $ | 8,318.70 | |||||||||||||||||||||||||||||||||||
Equipment rental | 2,198.20 | 1,786.70 | |||||||||||||||||||||||||||||||||||||
Total | $ | 12,908.30 | $ | 10,105.40 | |||||||||||||||||||||||||||||||||||
Property and equipment, net, at end of year | |||||||||||||||||||||||||||||||||||||||
Car rental | $ | 1,111.30 | $ | 971.3 | |||||||||||||||||||||||||||||||||||
Equipment rental | 235.9 | 203.7 | |||||||||||||||||||||||||||||||||||||
Other reconciling items | 89.2 | 76.9 | |||||||||||||||||||||||||||||||||||||
Total | $ | 1,436.40 | $ | 1,251.90 | |||||||||||||||||||||||||||||||||||
We operate in the United States and in international countries. International operations are substantially in Europe. The operations within major geographic areas are summarized below (in millions of dollars): | |||||||||||||||||||||||||||||||||||||||
Years ended December 31, | |||||||||||||||||||||||||||||||||||||||
2012 | 2011 | 2010 | |||||||||||||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||||||||||||
United States | $ | 6,313.40 | $ | 5,413.30 | $ | 4,993.70 | |||||||||||||||||||||||||||||||||
International | 2,707.40 | 2,885.10 | 2,568.80 | ||||||||||||||||||||||||||||||||||||
Total | $ | 9,020.80 | $ | 8,298.40 | $ | 7,562.50 | |||||||||||||||||||||||||||||||||
As of December 31, | |||||||||||||||||||||||||||||||||||||||
2012 | 2011 | ||||||||||||||||||||||||||||||||||||||
Total assets at end of year | |||||||||||||||||||||||||||||||||||||||
United States | $ | 18,140.90 | $ | 12,724.40 | |||||||||||||||||||||||||||||||||||
International | 5,149.30 | 4,942.90 | |||||||||||||||||||||||||||||||||||||
Total | $ | 23,290.20 | $ | 17,667.30 | |||||||||||||||||||||||||||||||||||
Revenue earning equipment, net, at end of year | |||||||||||||||||||||||||||||||||||||||
United States | $ | 10,221.30 | $ | 7,621.20 | |||||||||||||||||||||||||||||||||||
International | 2,687.00 | 2,484.20 | |||||||||||||||||||||||||||||||||||||
Total | $ | 12,908.30 | $ | 10,105.40 | |||||||||||||||||||||||||||||||||||
Property and equipment, net, at end of year | |||||||||||||||||||||||||||||||||||||||
United States | $ | 1,226.10 | $ | 1,036.70 | |||||||||||||||||||||||||||||||||||
International | 210.3 | 215.2 | |||||||||||||||||||||||||||||||||||||
Total | $ | 1,436.40 | $ | 1,251.90 | |||||||||||||||||||||||||||||||||||
(a) | The following table reconciles adjusted pre-tax income to income (loss) before income taxes for the years ended December 31, 2012, 2011 and 2010 (in millions of dollars): | ||||||||||||||||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||||||||||||||||
Adjusted pre-tax income | 2012 | 2011 | 2010 | ||||||||||||||||||||||||||||||||||||
Car rental | $ | 1,020.10 | $ | 850.2 | $ | 641.9 | |||||||||||||||||||||||||||||||||
Equipment rental | 227 | 161.6 | 78 | ||||||||||||||||||||||||||||||||||||
Total reportable segments | 1,247.10 | 1,011.80 | 719.9 | ||||||||||||||||||||||||||||||||||||
Adjustments: | |||||||||||||||||||||||||||||||||||||||
Other reconciling items(1) | (320.5 | ) | (306.2 | ) | (347.9 | ) | |||||||||||||||||||||||||||||||||
Purchase accounting(2) | (109.6 | ) | (87.6 | ) | (90.3 | ) | |||||||||||||||||||||||||||||||||
Non-cash debt charges(3) | (56.4 | ) | (105.9 | ) | (160.6 | ) | |||||||||||||||||||||||||||||||||
Restructuring charges | (38.0 | ) | (56.4 | ) | (54.7 | ) | |||||||||||||||||||||||||||||||||
Restructuring related charges(4) | (11.1 | ) | (9.8 | ) | (13.2 | ) | |||||||||||||||||||||||||||||||||
Derivative gains (losses)(5) | (0.9 | ) | 0.1 | (3.2 | ) | ||||||||||||||||||||||||||||||||||
Acquisition related costs and charges(6) | (163.7 | ) | (18.8 | ) | (17.7 | ) | |||||||||||||||||||||||||||||||||
Management transition costs | — | (4.0 | ) | — | |||||||||||||||||||||||||||||||||||
Pension adjustment(7) | — | 13.1 | — | ||||||||||||||||||||||||||||||||||||
Premiums paid on debt(8) | — | (62.4 | ) | — | |||||||||||||||||||||||||||||||||||
Other(9) | (44.0 | ) | — | — | |||||||||||||||||||||||||||||||||||
Income before income taxes | $ | 502.9 | $ | 373.9 | $ | 32.3 | |||||||||||||||||||||||||||||||||
_______________________________________________________________________________ | |||||||||||||||||||||||||||||||||||||||
-1 | Represents general corporate expenses, certain interest expense (including net interest on corporate debt), as well as other business activities. | ||||||||||||||||||||||||||||||||||||||
-2 | Represents the increase in amortization of other intangible assets, depreciation of property and equipment and accretion of revalued liabilities relating to purchase accounting. | ||||||||||||||||||||||||||||||||||||||
-3 | Represents non-cash debt charges relating to the amortization and write-off of deferred debt financing costs and debt discounts. | ||||||||||||||||||||||||||||||||||||||
-4 | Represents incremental costs incurred directly supporting our business transformation initiatives. Such costs include transition costs incurred in connection with our business process outsourcing arrangements and incremental costs incurred to facilitate business process re-engineering initiatives that involve significant organization redesign and extensive operational process changes. | ||||||||||||||||||||||||||||||||||||||
-5 | Represents the mark-to-market adjustment on our interest rate cap. | ||||||||||||||||||||||||||||||||||||||
-6 | Primarily represents Dollar Thrifty acquisition related expenses, change in control expenses, 'Day-1' compensation expenses and other adjustments related to the Dollar Thrifty acquisition, loss on the Advantage divestiture, expenses related to additional required divestitures and costs associated with the Dollar Thrifty acquisition, pre-acquisition interest and commitment fee expenses for interim financing associated with the Dollar Thrifty acquisition and a gain on the investment in Dollar Thrifty stock. | ||||||||||||||||||||||||||||||||||||||
-7 | Represents a gain for the U.K. pension plan relating to unamortized prior service cost from a 2010 amendment that eliminated discretionary pension increases related to pre-1997 service primarily pertaining to inactive employees. | ||||||||||||||||||||||||||||||||||||||
-8 | Represents premiums paid to redeem our 10.5% Senior Subordinated Notes and a portion of our 8.875% Senior Notes. | ||||||||||||||||||||||||||||||||||||||
-9 | Primarily represents expenses related to the withdrawal from a multiemployer pension plan, litigation accrual and expenses associated with the impact of Hurricane Sandy. |
SELECTED_QUARTERLY_FINANCIAL_D
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) - DOLLAR THRIFTY | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2012 | Dec. 31, 2011 | ||||||||||||||||||||||||||||||||
Dollar Thrifty Automotive Group Inc. | |||||||||||||||||||||||||||||||||
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | Quarterly Financial Information (Unaudited) | 16. SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | |||||||||||||||||||||||||||||||
Provided below is a summary of the quarterly operating results during 2012 and 2011 (in millions of dollars). | |||||||||||||||||||||||||||||||||
A summary of the quarterly operating results during 2011 and 2010 follows: | |||||||||||||||||||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Year Ended December 31, 2011 | First | Second | Third | Fourth | 2011 | ||||||||||||||||||||||||
2012 | 2012 | 2012 | 2012 | Quarter | Quarter | Quarter | Quarter | Total | |||||||||||||||||||||||||
Revenues | $ | 1,960.90 | $ | 2,225.10 | $ | 2,516.20 | $ | 2,318.60 | (In Thousands Except Per Share Amounts) | ||||||||||||||||||||||||
Revenues | $ | 348,347 | $ | 395,129 | $ | 451,722 | $ | 353,730 | $ | 1,548,928 | |||||||||||||||||||||||
Income (loss) before income taxes | (24.0 | ) | 171.7 | 382.1 | (26.9 | ) | Operating income(a) | $ | 46,921 | $ | 88,818 | $ | 126,036 | $ | 73,685 | $ | 335,460 | ||||||||||||||||
Net income | $ | 16,523 | $ | 42,505 | $ | 66,621 | $ | 33,901 | $ | 159,550 | |||||||||||||||||||||||
Net income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder | (48.2 | ) | 101 | 251.3 | (28.3 | ) | Earnings per share:(b) | ||||||||||||||||||||||||||
Basic | $ | 0.57 | $ | 1.47 | $ | 2.3 | $ | 1.16 | $ | 5.51 | |||||||||||||||||||||||
Diluted | $ | 0.53 | $ | 1.36 | $ | 2.13 | $ | 1.08 | $ | 5.11 | |||||||||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||||||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||||||||||||||||||
2011 | 2011 | 2011 | 2011 | ||||||||||||||||||||||||||||||
Revenues | $ | 1,780.00 | $ | 2,072.30 | $ | 2,432.30 | $ | 2,013.80 | Year Ended December 31, 2010 | First | Second | Third | Fourth | 2010 | |||||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Total | |||||||||||||||||||||||||||||
Income (loss) before income taxes | (146.7 | ) | 107 | 308.2 | 105.4 | (In Thousands Except Per Share Amounts) | |||||||||||||||||||||||||||
Revenues | $ | 348,330 | $ | 396,227 | $ | 443,544 | $ | 349,059 | $ | 1,537,160 | |||||||||||||||||||||||
Net income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder | (123.0 | ) | 62.1 | 212.6 | 58.8 | Operating income(a) | $ | 61,088 | $ | 84,436 | $ | 94,246 | $ | 43,314 | $ | 283,084 | |||||||||||||||||
Net income | $ | 27,292 | $ | 42,263 | $ | 49,165 | $ | 12,496 | $ | 131,216 | |||||||||||||||||||||||
Earnings per share:(b) | |||||||||||||||||||||||||||||||||
Basic | $ | 0.96 | $ | 1.48 | $ | 1.72 | $ | 0.44 | $ | 4.58 | |||||||||||||||||||||||
Diluted | $ | 0.91 | $ | 1.4 | $ | 1.62 | $ | 0.41 | $ | 4.34 | |||||||||||||||||||||||
(a) | |||||||||||||||||||||||||||||||||
Operating income represents pretax income before interest, long-lived asset impairment and (increase) decrease in fair value of derivatives. | |||||||||||||||||||||||||||||||||
(b) | |||||||||||||||||||||||||||||||||
The earnings per share is calculated from the weighted average common and common stock equivalents outstanding during each quarter, which may fluctuate based on quarterly income levels and market prices. Therefore, the sum of earnings per share information for each quarter may not equal the total year amounts. | |||||||||||||||||||||||||||||||||
During the second and fourth quarters of 2011, the Company recorded favorable changes in vehicle insurance reserve estimates of $10.6 million and $21.2 million, respectively, in conjunction with receiving actuarial updates on its vehicle insurance programs. See Note 14 for further discussion. | |||||||||||||||||||||||||||||||||
During the first and second quarters of 2011, the Company incurred $3.5 million and $1.1 million, respectively, in merger-related expenses. See Note 17 for further discussion. | |||||||||||||||||||||||||||||||||
During the fourth quarter of 2010, the Company recorded favorable changes in vehicle insurance reserve estimates of $13.4 million in conjunction with receiving actuarial updates on its vehicle insurance programs. See Note 14 for further discussion. | |||||||||||||||||||||||||||||||||
During the first, second, third and fourth quarters of 2010, the Company incurred $1.7 million, $6.9 million, $11.9 million and $2.1 million, respectively, in merger-related expenses. See Note 17 for further discussion. | |||||||||||||||||||||||||||||||||
In 2010, the majority relating to the third quarter, the Company wrote off $1.1 million (pretax) primarily related to software no longer in use and to impairments of assets at its company-owned stores. | |||||||||||||||||||||||||||||||||
PROPOSED_ACQUISITION_AND_RELAT2
PROPOSED ACQUISITION AND RELATED MATTERS - DOLLAR THRIFTY (Dollar Thrifty Automotive Group Inc.) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2012 | Dec. 31, 2011 | |
Dollar Thrifty Automotive Group Inc. | ||
PROPOSED ACQUISITION AND RELATED MATTERS | 14. PROPOSED ACQUISITION AND RELATED MATTERS | 17. PROPOSED ACQUISITION AND RELATED MATTERS |
On August 26, 2012, the Company entered into an Agreement and Plan of Merger (the "Merger Agreement") with Hertz Global Holdings, Inc. ("Hertz") and HDTMS, Inc., a wholly owned subsidiary of Hertz ("Merger Sub"). Subject to the terms and conditions of the Merger Agreement, which has been approved by the boards of directors of both Hertz and the Company, following consummation of the Offer (hereinafter defined) and subject to the approval of the Company's stockholders if required by applicable law, Merger Sub will be merged (the "Merger") with and into the Company, with the Company becoming a wholly owned subsidiary of Hertz. | In late February 2011, the Company submitted its certification of substantial compliance with the Second Request of the U.S. Federal Trade Commission ("FTC") relating to a potential acquisition of the Company by Avis Budget. | |
The Merger Agreement provides that the acquisition will be effected first through a tender offer by Merger Sub (the "Offer") to acquire all of the outstanding shares of common stock, par value $0.01 per share, of the Company (the "Shares") for $87.50 per Share (the "Offer Price"), net to the seller in cash and without any interest thereon, followed by the second-step Merger. | On May 9, 2011, Hertz announced its plans to commence an exchange offer to acquire the Company. On May 24, 2011, HDTMS, Inc., a wholly owned subsidiary of Hertz, commenced an exchange offer to exchange each of the issued and outstanding shares of the Company's common stock for (i) $57.60 in cash, without interest and less any required withholding taxes, and (ii) 0.8546 shares of common stock, par value $0.01 per share, of Hertz common stock (the "Exchange Offer"). The Exchange Offer had an expiration date of July 8, 2011; however, Hertz extended the Exchange Offer through November 1, 2011. On October 27, 2011, Hertz announced that it was withdrawing its Exchange Offer for all outstanding shares of the Company, in light of the Company's plan to commence its announced share repurchase program and current market conditions. However, Hertz noted that they remain interested in acquiring the Company and remain engaged with the FTC to secure antitrust clearance for a proposed transaction. | |
Subject to the terms and conditions of the Merger Agreement, the Company has granted Merger Sub an irrevocable one-time option (the "Top-Up Option") to purchase, at a price per Share equal to the Offer Price, an aggregate number of newly issued Shares that, when added to the number of Shares owned by Hertz and its subsidiaries, including Merger Sub, at the time of such exercise, constitutes one Share more than 90% of the Shares then outstanding immediately after the issuance of the Top-Up Option Shares on a fully diluted basis, subject to there being no legal restraint and sufficient authorized Shares available for issuance. The Top-Up Option is exercisable only after Shares have been accepted for payment pursuant to the Offer and Merger Sub irrevocably committing to effect the second-step Merger as soon as practicable after the exercise of the Top-Up Option. | On August 21, 2011, the Company issued a letter advising Hertz and Avis Budget of the Company's intention to solicit for submission in early October 2011 best and final definitive proposals regarding a potential business combination. In its letter, the Company stated that any proposal that did not eliminate the antitrust regulatory risk of the transaction for its shareholders would not likely be acceptable. In conjunction with the Company's request for final proposals regarding a potential business combination on September 14, 2011, Avis Budget announced that it would not participate in a bid to buy the Company, citing current market conditions. | |
The consummation of the Offer is subject to certain conditions, including among others, the following: (1) the Company's stockholders shall have validly tendered in the Offer the number of Shares which, when taken together with any Shares owned by Hertz and its subsidiaries, represents a majority of the outstanding Shares on a fully diluted basis and (2) the expiration or early termination of the applicable waiting periods required pursuant to the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the "HSR Act"). The Offer and the other transactions contemplated by the Merger Agreement are not subject to any financing condition. | As of October 10, 2011, the Company had not received any proposals meeting this criterion and announced that it has formally concluded its process to solicit definitive proposals regarding a potential business combination. Consequently, the Company has terminated its solicitation process and will continue to execute its current stand-alone plan. | |
The Merger Agreement also provides that, with respect to obtaining antitrust approval of the acquisition, Hertz is required to: (1) divest its Advantage brand, together with certain additional assets and airport concessions pursuant to a proposed consent agreement currently under discussion between Hertz and the Federal Trade Commission (the "FTC"), (2) take other actions which, individually or in the aggregate, are of a de minimis nature and (3) contest any administrative or judicial action or proceeding challenging the acquisition while the Merger Agreement is in effect. At any time after December 31, 2012, both the Company and Hertz may terminate the Merger Agreement if the FTC has not preliminarily accepted the proposed consent agreement and the waiting period under the HSR Act has not expired or been terminated. | Pending litigation relating to the now terminated merger agreement is described in Note 14. | |
The Merger Agreement includes customary termination provisions for both the Company and Hertz and provides that, in connection with the termination of the Merger Agreement, under certain circumstances, the Company and Hertz must reimburse the other party for its transaction expenses, subject to certain limitations. | ||
Effective August 26, 2012, prior to the execution of the Merger Agreement, the Company's board of directors approved a Second Amendment to Rights Agreement (the "Amendment"), dated as of August 26, 2012, amending the Rights Agreement ("Rights Agreement") between the Company and Computershare Trust Company, N.A., as rights agent, dated as of May 18, 2011 and amended on February 17, 2012. | ||
The Amendment, among other things, renders the Rights Agreement inapplicable to the Merger, the Offer, the Merger Agreement and the transactions contemplated thereby. The Amendment provides that the execution and delivery of the Merger Agreement, the consummation of the Offer, the Merger and the other transactions contemplated by the Merger Agreement will not be deemed to result in either Hertz or Merger Sub or any of their respective affiliates or associates becoming an "Acquiring Person" (as such term is defined in the Rights Agreement). In addition, the Amendment provides that none of a "Share Acquisition Date," a "Distribution Date," a "Flip-in Event" or a "Flip-over Event" (each as defined in the Rights Agreement) shall occur, and that the "Rights" (as defined in the Rights Agreement) will not separate from the Shares, in each case, by reason of the execution and delivery of the Merger Agreement, the consummation of the Offer, the Merger or the other transactions contemplated by the Merger Agreement. The Amendment also provides that the Rights Agreement shall terminate and all outstanding Rights shall expire immediately prior to the Acceptance Time (as defined in the Merger Agreement), but only if the Acceptance Time shall have occurred. If the Merger Agreement is subsequently terminated, the changes to the Rights Agreement pursuant to the Amendment will be of no further force and effect. | ||
On September 10, 2012, Hertz filed with the SEC a tender offer statement on Schedule TO and the Company filed with the SEC a Solicitation/Recommendation Statement on Schedule 14D-9 regarding the Offer. The Offer originally had an expiration date of October 5, 2012; however, Hertz extended the Offer, which will now expire on November 16, 2012, unless further extended. | ||
SUBSEQUENT_EVENTS_DOLLAR_THRIF1
SUBSEQUENT EVENTS - DOLLAR THRIFTY | 6 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended |
Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | |
Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | |||
SUBSEQUENT EVENTS | Subsequent Events | Subsequent Events | 15. SUBSEQUENT EVENTS | 18. SUBSEQUENT EVENTS |
On July 31, 2013, Hertz entered into a supplement to the Senior ABL Facility to permit aggregate maximum borrowings of $1,865.0 million (subject to borrowing base availability). | On January 23, 2013, Hertz Vehicle Financing LLC, or ‘‘HVF,’’ an insolvency remote, direct, wholly-owned, special purpose subsidiary of Hertz, completed the issuance of $950.0 million in aggregate principal amount of three year and five year Series 2013-1 Rental Car Asset Backed Notes, Class A and Class B. The $282.75 million of three year Class A notes carry a 1.12% coupon, the $42.25 million of three year Class B notes carry a 1.86% coupon, the $543.75 million of five year Class A notes carry a 1.83% coupon, and the $81.25 million of five year Class B notes carry a 2.48% coupon. The three year notes and five year notes have expected final payment dates in August 2016 and August 2018, respectively. The Class B notes are subordinated to the Class A notes. | |||
The net proceeds from the sale of the notes will be, to the extent permitted by the applicable agreements, (i) used to pay the purchase price of vehicles acquired by HVF pursuant to HVF's U.S. ABS Program (as defined herein), (ii) used to pay the principal amount of other HVF U.S. ABS Program indebtedness that is then permitted or required to be paid or (iii) released to HVF to be distributed to Hertz or otherwise used by HVF for general purposes. | In preparing the accompanying condensed consolidated financial statements, the Company has reviewed events that have occurred after September 30, 2012 through the issuance of the financial statements. The Company noted no reportable subsequent events other than the subsequent events noted below. | In preparing the consolidated financial statements, the Company has reviewed events that have occurred after December 31, 2011 through the issuance of the financial statements. The Company noted no reportable subsequent events other than the subsequent events noted in Notes 8 and 13. | ||
In February 2013, Hertz caused its Brazilian operating subsidiary to amend the Brazilian Fleet Financing Facility to extend the maturity date from February 2013 to October 2013. | ||||
In October 2012, the Company executed a vehicle purchase agreement with General Motors LLC ("GM") for the 2013 program year that will allow the Company to source through GM a portion of its vehicle purchases, subject to certain minimum volumes and to requirements applicable to the mix of models purchased. Volume requirements may be modified by mutual agreement between the Company and GM. | ||||
In November 2012, the Court approved the final settlement, ordered the parties to effectuate the settlement agreement according to its terms and dismissed the case on the merits, all in the case of Michael Shames; Gary Gramkow, on behalf of themselves and on behalf of all persons similarly situated v. The Hertz Corporation, Dollar Thrifty Automotive Group, Inc., Avis Budget Group, Inc., Vanguard Car Rental USA, Inc., Enterprise Rent-A-Car Company, Fox Rent-A-Car, Inc., Coast Leasing Corp., The California Travel and Tourism Commission and Caroline Beteta (No. 07 CV 2174 H BLM (S.D. Cal.). | ||||
Recovered_Sheet8
GUARANTOR AND NON-GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - DOLLAR THRIFTY | 6 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GUARANTOR AND NON-GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS | Guarantor and Non-Guarantor Condensed Consolidating Financial Statements | Guarantor and Non-Guarantor Condensed Consolidating Financial Statements | 16. GUARANTOR AND NON-GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS | 19. GUARANTOR AND NON-GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The following condensed consolidating financial information presents the Condensed Consolidating Balance Sheets as of June 30, 2013 and December 31, 2012 and the Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) for the three and six month periods ended June 30, 2013 and 2012, and Statements of Cash Flows for the six months ended June 30, 2013 and 2012, of (a) The Hertz Corporation, (“the Company” or “the Parent”); (b) the Parent's subsidiaries that guarantee the Parent's indebtedness, or the Guarantor Subsidiaries; (c) the Parent's subsidiaries that do not guarantee the Parent's indebtedness, or the Non-Guarantor Subsidiaries; (d) elimination entries necessary to consolidate the Parent with the Guarantor Subsidiaries and Non-Guarantor Subsidiaries; and of (e) the Company on a consolidated basis. | The following condensed consolidating financial information presents the Condensed Consolidating Balance Sheets as of December 31, 2012 and 2011 and the Condensed Consolidating Statements of Operations, Comprehensive Income (Loss) and Cash Flows for the years ended December 31, 2012, 2011 and 2010, and Statements of Cash Flows for the years ended December 31, 2012, 2011 and 2010, of (a) The Hertz Corporation, (“the Company” or “the Parent”); (b) the Parent's subsidiaries that guarantee the Parent's indebtedness, or the Guarantor Subsidiaries; (c) the Parent's subsidiaries that do not guarantee the Parent's indebtedness, or the Non-Guarantor Subsidiaries; (d) elimination entries necessary to consolidate the Parent with the Guarantor Subsidiaries and Non-Guarantor Subsidiaries; and of (e) the Company on a consolidated basis. The Guarantor Subsidiaries are consistent with those entities which guaranteed the Company's existing indebtedness as of December 31, 2011 and December 31, 2010, with the exception of the Company's Simply Wheelz subsidiary which was sold in connection with the Advantage divestiture, as more fully described below, and therefore is not included as a guarantor of the debt in this Form 10-K. | In November 2012, the Company was acquired by a wholly owned indirect subsidiary of The Hertz Corporation ("THC"), a wholly owned subsidiary of Hertz Global Holdings, Inc. In February 2013 and March 2013, the Company and certain of its subsidiaries were added as guarantors under certain of THC's debt instruments and credit facilities. | In November 2012, the Company was acquired by a wholly owned indirect subsidiary of The Hertz Corporation ("THC"), a wholly owned subsidiary of Hertz Global Holdings, Inc. In February 2013 and March 2013, the Company and certain of its subsidiaries were added as guarantors under certain of THC's debt instruments and credit facilities. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
On December 12, 2012, pursuant to a consent agreement Hertz Holdings entered into with the Federal Trade Commission in connection with the Dollar Thrifty acquisition, we consummated the Advantage Divestiture. Prior to the Advantage Divestiture, Simply Wheelz, the legal entity associated with Advantage, had been included within these condensed consolidating financial statements as a Guarantor Subsidiary. The following condensed consolidating financial statements which include Simply Wheelz now reflects it as a Non-Guarantor Subsidiary for all periods presented. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
In February 2013 and March 2013, we added Dollar Thrifty and certain of its subsidiaries as guarantors under certain of our debt instruments and credit facilities. The following condensed consolidating financial statements now reflects the results of this change for all periods presented. | The following condensed consolidating financial information presents the Condensed Consolidating Balance Sheets as of September 30, 2012 and December 31, 2011, and the Condensed Consolidating Statements of Comprehensive Income for the nine month periods ended September 30, 2012 and 2011, and Condensed Consolidating Statements of Cash Flows for the nine month periods ended September 30, 2012 and 2011, of (a) the Company and those of its subsidiaries that guarantee the indebtedness of THC, or the Guarantor Subsidiaries; (b) the subsidiaries of the Company that do not guarantee THC's indebtedness, or the Non-Guarantor Subsidiaries; (c) elimination entries necessary to consolidate the Guarantor Subsidiaries with the Non-Guarantor Subsidiaries; and of (d) the Company and its subsidiaries on a consolidated basis. | The following condensed consolidating financial information presents the Condensed Consolidating Balance Sheet as of December 31, 2011, and the Condensed Consolidating Statement of Income for the twelve month period ended December 31, 2011, and Condensed Consolidating Statement of Cash Flows for the twelve month period ended December 31, 2011, of (a) the Company and those of its subsidiaries that guarantee the indebtedness of THC, or the Guarantor Subsidiaries; (b) the subsidiaries of the Company that do not guarantee THC's indebtedness, or the Non-Guarantor Subsidiaries; (c) elimination entries necessary to consolidate the Guarantor Subsidiaries with the Non-Guarantor Subsidiaries; and of (d) the Company and its subsidiaries on a consolidated basis. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments in subsidiaries are accounted for using the equity method for purposes of the consolidating presentation. The principal elimination entries relate to investments in subsidiaries and intercompany balances and transactions. Separate financial statements and other disclosures with respect to the Guarantor Subsidiaries have not been provided as management believes the following information is sufficient, as the Guarantor Subsidiaries are 100% owned by the Parent and all guarantees are full and unconditional and joint and several. Additionally, substantially all of the assets of the Guarantor Subsidiaries are pledged under the Senior Credit Facilities, and consequently will not be available to satisfy the claims of our general creditors. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments in subsidiaries are accounted for using the equity method for purposes of the consolidating presentation. The principal elimination entries relate to investments in subsidiaries and intercompany balances and transactions. Separate financial statements and other disclosures with respect to the Guarantor Subsidiaries have not been provided, as the Guarantor Subsidiaries are 100% owned by the Parent and all guarantees are full and unconditional and joint and several. Additionally, substantially all of the assets of the Guarantor Subsidiaries are pledged under the Senior Credit Facilities, and consequently will not be available to satisfy the claims of our general creditors. | CONDENSED CONSOLIDATING BALANCE SHEET | Investments in subsidiaries are accounted for using the equity method for purposes of the consolidating presentation. The principal elimination entries relate to investments in subsidiaries and intercompany balances and transactions. Separate financial statements and other disclosures with respect to the Guarantor Subsidiaries have not been provided, as the Guarantor Subsidiaries are 100% owned by THC and all guarantees are full and unconditional and joint and several. Additionally, substantially all of the assets of the Guarantor Subsidiaries are pledged under THC's Senior Credit Facilities, and consequently will not be available to satisfy the claims of THC's general creditors. | Investments in subsidiaries are accounted for using the equity method for purposes of the consolidating presentation. The principal elimination entries relate to investments in subsidiaries and intercompany balances and transactions. Separate financial statements and other disclosures with respect to the Guarantor Subsidiaries have not been provided, as the Guarantor Subsidiaries are 100% owned by THC and all guarantees are full and unconditional and joint and several. Additionally, substantially all of the assets of the Guarantor Subsidiaries are pledged under THC's Senior Credit Facilities, and consequently will not be available to satisfy the claims of THC's general creditors. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | 31-Dec-12 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
30-Jun-13 | (In Thousands of Dollars) | DOLLAR THRIFTY AUTOMOTIVE GROUP, INC. AND SUBSIDIARIES | DOLLAR THRIFTY AUTOMOTIVE GROUP, INC. AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In Millions of Dollars) | CONDENSED CONSOLIDATING BALANCE SHEET | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
30-Sep-12 | CONDENSED CONSOLIDATING BALANCE SHEET | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In Thousands of Dollars) | 31-Dec-11 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | (In Thousands of Dollars) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | (The Hertz | Subsidiaries | Guarantor | Corporation & | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | Corporation) | Subsidiaries | Subsidiaries | Guarantor | Non- | Eliminations | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | ASSETS | Subsidiaries | Guarantor | Consolidated | Guarantor | Non- | Eliminations | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ASSETS | Cash and cash equivalents | $ | 24,602 | $ | 2,578 | $ | 506,055 | $ | — | $ | 533,235 | Subsidiaries | Subsidiaries | Guarantor | Consolidated | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 87.5 | $ | 24.5 | $ | 371 | $ | — | $ | 483 | ASSETS | Subsidiaries | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted cash and cash equivalents | 32,681 | 14,535 | 524,418 | — | 571,634 | Cash and cash equivalents | $ | 402,243 | $ | 54,626 | $ | — | $ | 456,869 | ASSETS | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted cash and cash equivalents | 33.7 | 17 | 342.5 | — | 393.2 | Restricted cash and investments | 6,185 | 243,959 | — | 250,144 | Cash and cash equivalents | $ | 446,239 | $ | 62,409 | $ | — | $ | 508,648 | |||||||||||||||||||||||||||||||||||||||||||||||||
Receivables, less allowance for doubtful accounts | 544,454 | 292,467 | 1,049,675 | — | 1,886,596 | Receivables, net | 86,835 | 69,618 | (28,236 | ) | 128,217 | Restricted cash and investments | 1,355 | 351,910 | — | 353,265 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables, less allowance for doubtful accounts | 500.8 | 482.1 | 719.3 | (46.2 | ) | 1,656.00 | Intercompany | (92,323 | ) | 147,270 | (54,947 | ) | — | Receivables, net | 86,184 | 34,294 | (25,118 | ) | 95,360 | |||||||||||||||||||||||||||||||||||||||||||||||||
Due from Hertz affiliate | 1,047,986 | 59,181 | 2,199,247 | (3,293,605 | ) | 12,809 | Prepaid expenses and other assets | 59,770 | 13,409 | (1,199 | ) | 71,980 | Intercompany | (100,436 | ) | 154,999 | (54,563 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Due from Hertz affiliate | 1,042.70 | 1,842.70 | 3,691.70 | (6,576.3 | ) | 0.8 | Revenue-earning vehicles, net | 24,629 | 1,850,978 | — | 1,875,607 | Prepaid expenses and other assets | 49,163 | 20,503 | (3,707 | ) | 65,959 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories, at lower cost or market | 24,422 | 34,101 | 47,205 | — | 105,728 | Property and equipment, net | 76,208 | 1,679 | — | 77,887 | Revenue-earning vehicles, net | 33,057 | 1,434,778 | — | 1,467,835 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories, at lower cost or market | 30.8 | 39.8 | 57.7 | — | 128.3 | Investment in subsidiaries | 825,502 | — | (825,502 | ) | — | Property and equipment, net | 82,588 | 1,690 | — | 84,278 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Prepaid expenses and other assets | 2,570,539 | 183,573 | 203,678 | (2,496,288 | ) | 461,502 | Income taxes receivable | 4,364 | 89 | — | 4,453 | Investment in subsidiaries | 581,003 | — | (581,003 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Prepaid expenses and other assets | 2,894.70 | 244.3 | 407.2 | (2,783.0 | ) | 763.2 | Software, net | 19,438 | — | — | 19,438 | Income taxes receivable | 18,702 | 84 | — | 18,786 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue earning equipment, net | 104,207 | 1,734,325 | 11,069,804 | — | 12,908,336 | Software, net | 21,535 | — | — | 21,535 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue earning equipment, net | 175.3 | 1,893.00 | 13,637.70 | — | 15,706.00 | Total assets | $ | 1,412,851 | $ | 2,381,628 | $ | (909,884 | ) | $ | 2,884,595 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and equipment, net | 865,694 | 206,332 | 364,360 | — | 1,436,386 | Total assets | $ | 1,219,390 | $ | 2,060,667 | $ | (664,391 | ) | $ | 2,615,666 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and equipment, net | 897.6 | 315.1 | 252.9 | — | 1,465.60 | LIABILITIES AND EQUITY | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment in subsidiaries, net | 6,964,916 | 506,123 | — | (7,471,039 | ) | — | LIABILITIES: | LIABILITIES AND EQUITY | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment in subsidiaries, net | 6,833.10 | 1,367.90 | — | (8,201.0 | ) | — | Accounts payable | $ | 44,288 | $ | 3,484 | $ | (3 | ) | $ | 47,769 | LIABILITIES: | |||||||||||||||||||||||||||||||||||||||||||||||||||
Other intangible assets, net | 74,606 | 2,352,342 | 1,605,163 | — | 4,032,111 | Accrued liabilities | 161,841 | 4,157 | (29,432 | ) | 136,566 | Accounts payable | $ | 45,827 | $ | 8,573 | $ | (23 | ) | $ | 54,377 | |||||||||||||||||||||||||||||||||||||||||||||||
Other intangible assets, net | 70.2 | 3,848.10 | 50.2 | — | 3,968.50 | Income tax payable / (receivable) | — | — | — | — | Accrued liabilities | 148,820 | 4,167 | (28,802 | ) | 124,185 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill | 106,210 | 133,923 | 1,101,739 | — | 1,341,872 | Deferred income taxes | 391,431 | 1,093 | — | 392,524 | Income tax payable / (receivable) | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill | 106.2 | 1,035.60 | 224.5 | — | 1,366.30 | Vehicle insurance reserves | 71,050 | 11,308 | — | 82,358 | Deferred income taxes | 341,408 | 1,554 | — | 342,962 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 12,360,317 | $ | 5,519,480 | $ | 18,671,344 | $ | (13,260,932 | ) | $ | 23,290,209 | Debt and other obligations | — | 1,536,084 | (54,947 | ) | 1,481,137 | Vehicle insurance reserves | 75,663 | 10,852 | — | 86,515 | ||||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 12,672.60 | $ | 11,110.10 | $ | 19,754.70 | $ | (17,606.5 | ) | $ | 25,930.90 | Debt and other obligations | — | 1,454,518 | (54,563 | ) | 1,399,955 | |||||||||||||||||||||||||||||||||||||||||||||||||||
LIABILITIES AND EQUITY | Total liabilities | 668,610 | 1,556,126 | (84,382 | ) | 2,140,354 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LIABILITIES AND EQUITY | Total liabilities | 611,718 | 1,479,664 | (83,388 | ) | 2,007,994 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Due to Hertz affiliate | $ | 2,254,223 | $ | 628,275 | $ | 411,107 | $ | (3,293,605 | ) | $ | — | COMMITMENTS AND CONTINGENCIES | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Due to Hertz affiliate | $ | 2,097.10 | $ | 2,498.80 | $ | 1,980.40 | $ | (6,576.3 | ) | $ | — | EQUITY | 744,241 | 825,502 | (825,502 | ) | 744,241 | COMMITMENTS AND CONTINGENCIES | ||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts payable | 239,247 | 157,742 | 602,072 | — | 999,061 | EQUITY: | 607,672 | 581,003 | (581,003 | ) | 607,672 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts payable | 165.2 | 267.9 | 1,051.40 | — | 1,484.50 | Total liabilities and equity | $ | 1,412,851 | $ | 2,381,628 | $ | (909,884 | ) | $ | 2,884,595 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued liabilities | 605,680 | 84,992 | 487,788 | — | 1,178,460 | Total liabilities and equity | $ | 1,219,390 | $ | 2,060,667 | $ | (664,391 | ) | $ | 2,615,666 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued liabilities | 642.7 | 242.2 | 343.6 | (46.2 | ) | 1,182.30 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued taxes | 54,357 | 11,511 | 1,003,127 | (901,681 | ) | 167,314 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued taxes | 60.3 | 33.9 | 1,335.00 | (1,245.6 | ) | 183.6 | DOLLAR THRIFTY AUTOMOTIVE GROUP, INC. AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | 6,190,040 | 49,445 | 8,774,989 | — | 15,014,474 | CONDENSED CONSOLIDATING BALANCE SHEET | DOLLAR THRIFTY AUTOMOTIVE GROUP, INC. AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | 7,042.30 | 68.5 | 10,283.40 | — | 17,394.20 | 31-Dec-11 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Public liability and property damage | 99,261 | 10,390 | 222,581 | — | 332,232 | (In Thousands of Dollars) | CONDENSED CONSOLIDATING STATEMENT OF INCOME | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Public liability and property damage | 93 | 58.5 | 176 | — | 327.5 | FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2011 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred taxes on income | — | 1,776,199 | 2,499,548 | (1,594,607 | ) | 2,681,140 | (In Thousands of Dollars) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred taxes on income | — | 2,232.70 | 2,091.50 | (1,537.4 | ) | 2,786.80 | Guarantor | Non- | Eliminations | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities | 9,442,808 | 2,718,554 | 14,001,212 | (5,789,893 | ) | 20,372,681 | Subsidiaries | Guarantor | Consolidated | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities | 10,100.60 | 5,402.50 | 17,261.30 | (9,405.5 | ) | 23,358.90 | Subsidiaries | Guarantor | Non- | Eliminations | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity: | ASSETS | Subsidiaries | Guarantor | Consolidated | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity: | Cash and cash equivalents | $ | 446,239 | $ | 62,409 | $ | — | $ | 508,648 | Subsidiaries | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The Hertz Corporation and Subsidiaries stockholder's equity | 2,917,509 | 2,800,926 | 4,670,113 | (7,471,039 | ) | 2,917,509 | Restricted cash and investments | 1,355 | 351,910 | — | 353,265 | Total revenues | $ | 1,480,660 | $ | 436,441 | $ | (368,173 | ) | $ | 1,548,928 | |||||||||||||||||||||||||||||||||||||||||||||||
The Hertz Corporation and Subsidiaries stockholder's equity | 2,572.00 | 5,707.60 | 2,493.40 | (8,201.0 | ) | 2,572.00 | Receivables, net | 86,184 | 34,294 | (25,118 | ) | 95,360 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interest | — | — | 19 | — | 19 | Intercompany | (100,436 | ) | 154,999 | (54,563 | ) | — | COSTS AND EXPENSES: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interest | — | — | — | — | — | Prepaid expenses and other assets | 49,163 | 20,503 | (3,707 | ) | 65,959 | Direct vehicle and operating | 708,477 | 51,008 | (8,017 | ) | 751,468 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total equity | 2,917,509 | 2,800,926 | 4,670,132 | (7,471,039 | ) | 2,917,528 | Revenue-earning vehicles, net | 33,057 | 1,434,778 | — | 1,467,835 | Vehicle depreciation and lease charges, net | 378,898 | 251,526 | (359,467 | ) | 270,957 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total equity | 2,572.00 | 5,707.60 | 2,493.40 | (8,201.0 | ) | 2,572.00 | Property and equipment, net | 82,588 | 1,690 | — | 84,278 | Selling, general and administrative | 184,769 | 6,937 | (663 | ) | 191,043 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities and equity | $ | 12,360,317 | $ | 5,519,480 | $ | 18,671,344 | $ | (13,260,932 | ) | $ | 23,290,209 | Investment in subsidiaries | 581,003 | — | (581,003 | ) | — | Interest expense, net | 36,003 | 41,485 | (26 | ) | 77,462 | |||||||||||||||||||||||||||||||||||||||||||||
Total liabilities and equity | $ | 12,672.60 | $ | 11,110.10 | $ | 19,754.70 | $ | (17,606.5 | ) | $ | 25,930.90 | Income taxes receivable | 18,702 | 84 | — | 18,786 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Software, net | 21,535 | — | — | 21,535 | Total costs and expenses | 1,308,147 | 350,956 | (368,173 | ) | 1,290,930 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | Total assets | $ | 1,219,390 | $ | 2,060,667 | $ | (664,391 | ) | $ | 2,615,666 | (Increase) decrease in fair value of derivatives | (5,634 | ) | 2,390 | — | (3,244 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | 31-Dec-11 | INCOME / (LOSS) BEFORE INCOME TAXES and EQUITY IN EARNINGS OF SUBS | 178,147 | 83,095 | — | 261,242 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
31-Dec-12 | (In Thousands of Dollars) | LIABILITIES AND EQUITY | INCOME TAX EXPENSE | 100,772 | 920 | — | 101,692 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In Millions of Dollars) | LIABILITIES: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts payable | $ | 45,827 | $ | 8,573 | $ | (23 | ) | $ | 54,377 | NET INCOME / (LOSS) BEFORE EQUITY IN EARNINGS OF SUBS | 77,375 | 82,175 | — | 159,550 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | Accrued liabilities | 148,820 | 4,167 | (28,802 | ) | 124,185 | EQUITY IN EARNINGS OF SUBSIDIARIES | 82,175 | — | (82,175 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | (The Hertz | Subsidiaries | Guarantor | Corporation & | Income tax payable / (receivable) | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | Corporation) | Subsidiaries | Subsidiaries | Deferred income taxes | 341,408 | 1,554 | — | 342,962 | NET INCOME / (LOSS) | $ | 159,550 | $ | 82,175 | $ | (82,175 | ) | $ | 159,550 | |||||||||||||||||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | ASSETS | Vehicle insurance reserves | 75,663 | 10,852 | — | 86,515 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ASSETS | Cash and cash equivalents | $ | 565,002 | $ | 7,385 | $ | 358,821 | $ | — | $ | 931,208 | Debt and other obligations | — | 1,454,518 | (54,563 | ) | 1,399,955 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 24.6 | $ | 6.5 | $ | 502.1 | $ | — | $ | 533.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted cash and cash equivalents | 44,663 | 28,130 | 235,246 | — | 308,039 | Total liabilities | 611,718 | 1,479,664 | (83,388 | ) | 2,007,994 | DOLLAR THRIFTY AUTOMOTIVE GROUP, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted cash and cash equivalents | 32.7 | 17.1 | 521.8 | — | 571.6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables, less allowance for doubtful accounts | 297,292 | 218,754 | 1,100,336 | — | 1,616,382 | COMMITMENTS AND CONTINGENCIES | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables, less allowance for doubtful accounts | 544.5 | 444 | 924.7 | (26.6 | ) | 1,886.60 | EQUITY: | 607,672 | 581,003 | (581,003 | ) | 607,672 | FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Due from Hertz affiliate | 655,411 | 65,972 | 1,194,041 | (1,915,424 | ) | — | (In Thousands of Dollars) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Due from Hertz affiliate | 1,048.00 | 2,023.50 | 3,491.70 | (6,550.4 | ) | 12.8 | Total liabilities and equity | $ | 1,219,390 | $ | 2,060,667 | $ | (664,391 | ) | $ | 2,615,666 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories, at lower cost or market | 22,440 | 26,541 | 34,997 | — | 83,978 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories, at lower cost or market | 24.4 | 41.2 | 40.1 | — | 105.7 | Guarantor | Non- | Eliminations | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Prepaid expenses and other assets | 2,088,579 | 32,974 | 137,189 | (1,842,608 | ) | 416,134 | DOLLAR THRIFTY AUTOMOTIVE GROUP, INC. AND SUBSIDIARIES | Subsidiaries | Guarantor | Consolidated | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Prepaid expenses and other assets | 2,570.50 | 277.8 | 173.3 | (2,560.1 | ) | 461.5 | CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME | Subsidiaries | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue earning equipment, net | 167,304 | 1,505,867 | 8,432,238 | — | 10,105,409 | FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2012 | Net cash provided by operating activities | $ | 306,521 | $ | 347,234 | $ | (86,461 | ) | $ | 567,294 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue earning equipment, net | 104.2 | 1,678.50 | 11,125.60 | — | 12,908.30 | (In Thousands of Dollars) | CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and equipment, net | 824,381 | 170,874 | 256,599 | — | 1,251,854 | Revenue-earning vehicles—Purchases | (58,522 | ) | (1,110,010 | ) | — | (1,168,532 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and equipment, net | 865.7 | 321.9 | 248.8 | — | 1,436.40 | Revenue-earning vehicles—Proceeds from sales | 42,746 | 715,020 | — | 757,766 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment in subsidiaries, net | 4,413,289 | 460,201 | — | (4,873,490 | ) | — | Guarantor | Non- | Eliminations | Total | Net change in cash & cash equivalents required minimum balance | 100,000 | — | — | 100,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment in subsidiaries, net | 6,964.90 | 1,260.90 | — | (8,225.8 | ) | — | Subsidiaries | Guarantor | Consolidated | Net change in restricted cash and investments | 16 | (75,477 | ) | — | (75,461 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other intangible assets, net | 94,682 | 2,363,617 | 103,935 | — | 2,562,234 | Subsidiaries | Property, equipment and software—Purchases | (16,543 | ) | (90 | ) | — | (16,633 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other intangible assets, net | 74.6 | 3,893.30 | 64.2 | — | 4,032.10 | Total revenues | $ | 1,151,812 | $ | 346,437 | $ | (285,999 | ) | $ | 1,212,250 | Property, equipment and software—Proceeds from sales | 330 | 29 | — | 359 | ||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill | 100,221 | 67,228 | 224,645 | — | 392,094 | Dividends received | 266,675 | — | (266,675 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill | 106.2 | 1,018.90 | 216.8 | — | 1,341.90 | COSTS AND EXPENSES: | Investment in subsidiary | (247,713 | ) | — | 247,713 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 9,273,264 | $ | 4,947,543 | $ | 12,078,047 | $ | (8,631,522 | ) | $ | 17,667,332 | Direct vehicle and operating | 558,350 | 40,861 | (2,748 | ) | 596,463 | Intercompany | (139,869 | ) | 8,993 | 130,876 | — | |||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 12,360.30 | $ | 10,983.60 | $ | 17,309.10 | $ | (17,362.9 | ) | $ | 23,290.10 | Vehicle depreciation and lease charges, net | 302,648 | 168,446 | (282,726 | ) | 188,368 | |||||||||||||||||||||||||||||||||||||||||||||||||||
LIABILITIES AND EQUITY | Selling, general and administrative | 143,258 | 4,719 | (498 | ) | 147,479 | Net cash provided by/(used in) investing activities | (52,880 | ) | (461,535 | ) | 111,914 | (402,501 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
LIABILITIES AND EQUITY | Interest expense, net | 11,156 | 33,472 | (27 | ) | 44,601 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Due to Hertz affiliate | $ | 1,251,347 | $ | 266,604 | $ | 397,885 | $ | (1,915,424 | ) | $ | 412 | CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Due to Hertz affiliate | $ | 2,254.20 | $ | 2,421.60 | $ | 1,874.60 | $ | (6,550.4 | ) | $ | — | Total costs and expenses | 1,015,412 | 247,498 | (285,999 | ) | 976,911 | Debt and other obligations: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts payable | 188,695 | 165,258 | 543,536 | — | 897,489 | Proceeds from vehicle debt and other obligations | — | 1,592,466 | (54,563 | ) | 1,537,903 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts payable | 239.2 | 193.9 | 566 | — | 999.1 | (Increase) decrease in fair value of derivatives | — | 525 | — | 525 | Payments of vehicle debt and other obligations | — | (1,396,350 | ) | 9,277 | (1,387,073 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued liabilities | 607,673 | 209,263 | 309,402 | — | 1,126,338 | INCOME / (LOSS) BEFORE INCOME TAXES and EQUITY IN EARNINGS OF SUBS | 136,400 | 98,414 | — | 234,814 | Payments—non-vehicle debt | (148,125 | ) | — | — | (148,125 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued liabilities | 605.7 | 45 | 554.3 | (26.6 | ) | 1,178.40 | INCOME TAX EXPENSE | 89,212 | 304 | — | 89,516 | Issuance of common shares | 4,774 | — | — | 4,774 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued taxes | 54,559 | 134,186 | (13,889 | ) | (11,872 | ) | 162,984 | Net settlement of employee withholding taxes on share-based awards | (3,205 | ) | — | — | (3,205 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued taxes | 54.4 | 29.1 | 1,049.30 | (965.5 | ) | 167.3 | NET INCOME / (LOSS) BEFORE EQUITY IN EARNINGS OF SUBS | 47,188 | 98,110 | — | 145,298 | Early termination of interest rate swap | (8,815 | ) | — | — | (8,815 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | 4,434,274 | 4,237 | 6,469,338 | — | 10,907,849 | EQUITY IN EARNINGS OF SUBSIDIARIES | 98,110 | — | (98,110 | ) | — | Forward stock repurchase agreement | (100,000 | ) | — | — | (100,000 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | 6,190.00 | 67.7 | 8,756.80 | — | 15,014.50 | Financing issue costs | (2,038 | ) | (12,719 | ) | — | (14,757 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Public liability and property damage | 107,881 | 14,025 | 159,628 | — | 281,534 | NET INCOME / (LOSS) | $ | 145,298 | $ | 98,110 | $ | (98,110 | ) | $ | 145,298 | Dividends paid | — | (266,675 | ) | 266,675 | — | |||||||||||||||||||||||||||||||||||||||||||||||
Public liability and property damage | 99.3 | 52.8 | 180.1 | — | 332.2 | Capital contribution from Parent | — | 246,842 | (246,842 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred taxes on income | — | 1,449,171 | 2,043,437 | (1,830,736 | ) | 1,661,872 | COMPREHENSIVE INCOME / (LOSS) | $ | 159,277 | $ | 103,277 | $ | (103,277 | ) | $ | 159,277 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred taxes on income | — | 2,205.60 | 2,070.10 | (1,594.6 | ) | 2,681.10 | Net cash provided by/(used in) financing activities | (257,409 | ) | 163,564 | (25,453 | ) | (119,298 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities | 6,644,429 | 2,242,744 | 9,909,337 | (3,758,032 | ) | 15,038,478 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities | 9,442.80 | 5,015.70 | 15,051.20 | (9,137.1 | ) | 20,372.60 | CHANGE IN CASH AND CASH EQUIVALENTS | (3,768 | ) | 49,263 | — | 45,495 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity: | DOLLAR THRIFTY AUTOMOTIVE GROUP, INC. AND SUBSIDIARIES | CASH AND CASH EQUIVALENTS: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity: | CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME | Beginning of Period | 450,007 | 13,146 | — | 463,153 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The Hertz Corporation and Subsidiaries stockholder's equity | 2,628,835 | 2,704,799 | 2,168,691 | (4,873,490 | ) | 2,628,835 | FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The Hertz Corporation and Subsidiaries stockholder's equity | 2,917.50 | 5,967.90 | 2,257.90 | (8,225.8 | ) | 2,917.50 | (In Thousands of Dollars) | End of Period | $ | 446,239 | $ | 62,409 | $ | — | $ | 508,648 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interest | — | — | 19 | — | 19 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interest | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total equity | 2,628,835 | 2,704,799 | 2,168,710 | (4,873,490 | ) | 2,628,854 | Guarantor | Non- | Eliminations | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total equity | 2,917.50 | 5,967.90 | 2,257.90 | (8,225.8 | ) | 2,917.50 | Subsidiaries | Guarantor | Consolidated | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities and equity | $ | 9,273,264 | $ | 4,947,543 | $ | 12,078,047 | $ | (8,631,522 | ) | $ | 17,667,332 | Subsidiaries | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities and equity | $ | 12,360.30 | $ | 10,983.60 | $ | 17,309.10 | $ | (17,362.9 | ) | $ | 23,290.10 | Total revenues | $ | 1,140,588 | $ | 332,591 | $ | (277,981 | ) | $ | 1,195,198 | |||||||||||||||||||||||||||||||||||||||||||||||
COSTS AND EXPENSES: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Direct vehicle and operating | 549,971 | 40,151 | (6,323 | ) | 583,799 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | Vehicle depreciation and lease charges, net | 288,433 | 186,677 | (271,127 | ) | 203,983 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Three Months Ended June 30, 2013 | For the Year Ended December 31, 2012 | Selling, general and administrative | 140,345 | 5,810 | (514 | ) | 145,641 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In Millions of Dollars) | (In Thousands of Dollars) | Interest expense, net | 29,552 | 29,364 | (17 | ) | 58,899 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total costs and expenses | 1,008,301 | 262,002 | (277,981 | ) | 992,322 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | Parent | Guarantor | Non- | Eliminations | The Hertz | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | (The Hertz | Subsidiaries | Guarantor | Corporation & | (Increase) decrease in fair value of derivatives | (5,634 | ) | 2,267 | — | (3,367 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | Corporation) | Subsidiaries | Subsidiaries | INCOME / (LOSS) BEFORE INCOME TAXES and EQUITY IN EARNINGS OF SUBS | 137,921 | 68,322 | — | 206,243 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total revenues | $ | 1,147.00 | $ | 662.8 | $ | 1,617.50 | $ | (712.7 | ) | $ | 2,714.60 | Total revenues | $ | 4,259,049 | $ | 975,500 | $ | 6,255,039 | $ | (2,468,781 | ) | $ | 9,020,807 | INCOME TAX EXPENSE | 80,270 | 324 | — | 80,594 | ||||||||||||||||||||||||||||||||||||||||
Expenses: | Expenses: | NET INCOME / (LOSS) BEFORE EQUITY IN EARNINGS OF SUBS | 57,651 | 67,998 | — | 125,649 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Direct operating | 2,384,829 | 553,099 | 1,857,860 | — | 4,795,788 | EQUITY IN EARNINGS OF SUBSIDIARIES | 67,998 | — | (67,998 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Direct operating | 618.8 | 357.1 | 430.3 | (0.3 | ) | 1,405.90 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation of revenue earning equipment and lease charges | 2,402,032 | 198,322 | 2,016,585 | (2,468,781 | ) | 2,148,158 | NET INCOME / (LOSS) | $ | 125,649 | $ | 67,998 | $ | (67,998 | ) | $ | 125,649 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation of revenue earning equipment and lease charges | 608 | 168.9 | 576.4 | (712.2 | ) | 641.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative | 448,100 | 123,300 | 374,181 | — | 945,581 | COMPREHENSIVE INCOME / (LOSS) | $ | 127,358 | $ | 60,093 | $ | (60,093 | ) | $ | 127,358 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative | 122.3 | 64.7 | 88 | (0.2 | ) | 274.8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense, net of interest income | 253,437 | 39,679 | 299,770 | — | 592,886 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | 88 | 8.5 | 73.7 | — | 170.2 | DOLLAR THRIFTY AUTOMOTIVE GROUP, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other (income) expense, net | (10,656 | ) | (19 | ) | 46,217 | — | 35,542 | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest income | — | (1.6 | ) | (0.4 | ) | — | (2.0 | ) | FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2012 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total expenses | 5,477,742 | 914,381 | 4,594,613 | (2,468,781 | ) | 8,517,955 | (In Thousands of Dollars) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other (income) expense, net | 14.5 | (2.2 | ) | (13.4 | ) | — | (1.1 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes and equity in earnings (losses) of subsidiaries | (1,218,693 | ) | 61,119 | 1,660,426 | — | 502,852 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total expenses | 1,451.60 | 595.4 | 1,154.60 | (712.7 | ) | 2,488.90 | Guarantor | Non- | Eliminations | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Provision) benefit for taxes on income | 476,444 | (44,846 | ) | (658,671 | ) | — | (227,073 | ) | Subsidiaries | Guarantor | Consolidated | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes and equity in earnings (losses) of subsidiaries | (304.6 | ) | 67.4 | 462.9 | — | 225.7 | Subsidiaries | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity in earnings (losses) of subsidiaries (net of tax) | 1,018,028 | 45,922 | — | (1,063,950 | ) | — | Net cash provided by operating activities | $ | 206,985 | $ | 319,585 | $ | (91,800 | ) | $ | 434,770 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(Provision) benefit for taxes on income | 109.3 | (25.2 | ) | (179.9 | ) | — | (95.8 | ) | CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder | $ | 275,779 | $ | 62,195 | $ | 1,001,755 | $ | (1,063,950 | ) | $ | 275,779 | Revenue-earning vehicles—Purchases | (38,350 | ) | (1,342,267 | ) | — | (1,380,617 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||
Equity in earnings (losses) of subsidiaries (net of tax) | 325.2 | 56.8 | — | (382.0 | ) | — | Revenue-earning vehicles—Proceeds from sales | 26,623 | 730,468 | — | 757,091 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net change in restricted cash and investments | (4,817 | ) | 108,462 | — | 103,645 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder | $ | 129.9 | $ | 99 | $ | 283 | $ | (382.0 | ) | $ | 129.9 | CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | Property, equipment and software—Purchases | (13,817 | ) | (84 | ) | — | (13,901 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
For the Year Ended December 31, 2011 | Property, equipment and software—Proceeds from sales | 3,491 | — | — | 3,491 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In Thousands of Dollars) | Dividends received | 79,000 | — | (79,000 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | Investment in subsidiary | (231,600 | ) | — | 231,600 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2013 | Intercompany | (35,029 | ) | (56,793 | ) | 91,822 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In Millions of Dollars) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | Net cash provided by/(used in) investing activities | (214,499 | ) | (560,214 | ) | 244,422 | (530,291 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | Corporation) | Subsidiaries | Subsidiaries | CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | Total revenues | $ | 4,068,310 | $ | 809,093 | $ | 5,733,827 | $ | (2,312,850 | ) | $ | 8,298,380 | Debt and other obligations: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | Proceeds from vehicle debt and other obligations | — | 581,169 | — | 581,169 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total revenues | $ | 2,201.60 | $ | 1,284.90 | $ | 3,120.60 | $ | (1,455.9 | ) | $ | 5,151.20 | Expenses: | Payments of vehicle debt and other obligations | — | (500,000 | ) | — | (500,000 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common shares | 1,694 | — | — | 1,694 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses: | Direct operating | 2,262,371 | 497,053 | 1,806,954 | — | 4,566,378 | Net settlement of employee withholding taxes on share-based awards | (1,215 | ) | — | — | (1,215 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases of common stock for the treasury | (29,136 | ) | — | — | (29,136 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Direct operating | 1,231.70 | 710 | 815.9 | (0.5 | ) | 2,757.10 | Depreciation of revenue earning equipment and lease charges | 1,996,733 | 180,807 | 2,041,049 | (2,312,850 | ) | 1,905,739 | Financing issue costs | (7,825 | ) | (945 | ) | — | (8,770 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Dividends paid | — | (79,000 | ) | 79,000 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation of revenue earning equipment and lease charges | 1,269.40 | 321.3 | 1,092.60 | (1,455.2 | ) | 1,228.10 | Selling, general and administrative | 326,794 | 85,414 | 332,909 | — | 745,117 | Capital contribution from Parent | — | 231,622 | (231,622 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative | 229.5 | 124.4 | 172.6 | (0.2 | ) | 526.3 | Interest expense, net of interest income | 299,099 | 27,226 | 318,378 | — | 644,703 | Net cash provided by/(used in) financing activities | (36,482 | ) | 232,846 | (152,622 | ) | 43,742 | |||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | 169.1 | 18.8 | 145.6 | — | 333.5 | Other (income) expense, net | 62,396 | (18 | ) | 170 | — | 62,548 | CHANGE IN CASH AND CASH EQUIVALENTS | (43,996 | ) | (7,783 | ) | — | (51,779 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
CASH AND CASH EQUIVALENTS: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest income | — | (3.1 | ) | (0.7 | ) | — | (3.8 | ) | Total expenses | 4,947,393 | 790,482 | 4,499,460 | (2,312,850 | ) | 7,924,485 | Beginning of Period | 446,239 | 62,409 | — | 508,648 | ||||||||||||||||||||||||||||||||||||||||||||||||
Other (income) expense, net | 14.3 | (2.2 | ) | (13.8 | ) | — | (1.7 | ) | Income (loss) before income taxes, noncontrolling interest and equity in earnings (losses) of subsidiaries | (879,083 | ) | 18,611 | 1,234,367 | — | 373,895 | End of Period | $ | 402,243 | $ | 54,626 | $ | — | $ | 456,869 | ||||||||||||||||||||||||||||||||||||||||||||
Total expenses | 2,914.00 | 1,169.20 | 2,212.20 | (1,455.9 | ) | 4,839.50 | (Provision) benefit for taxes on income (loss) | 342,469 | (10,016 | ) | (476,299 | ) | — | (143,846 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
DOLLAR THRIFTY AUTOMOTIVE GROUP, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes and equity in earnings (losses) of subsidiaries | (712.4 | ) | 115.7 | 908.4 | — | 311.7 | Equity in earnings (losses) of subsidiaries (net of tax) | 747,103 | 26,215 | — | (773,318 | ) | — | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2011 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Provision) benefit for taxes on income | 257.5 | (43.1 | ) | (369.7 | ) | — | (155.3 | ) | Net income (loss) | 210,489 | 34,810 | 758,068 | (773,318 | ) | 230,049 | (In Thousands of Dollars) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity in earnings (losses) of subsidiaries (net of tax) | 611.3 | 111.6 | — | (722.9 | ) | — | Less: Net income attributable to noncontrolling interest | — | — | (19,560 | ) | — | (19,560 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Guarantor | Non- | Eliminations | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder | $ | 156.4 | $ | 184.2 | $ | 538.7 | $ | (722.9 | ) | $ | 156.4 | Net income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder | $ | 210,489 | $ | 34,810 | $ | 738,508 | $ | (773,318 | ) | $ | 210,489 | Subsidiaries | Guarantor | Consolidated | ||||||||||||||||||||||||||||||||||||||||||
Subsidiaries | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash provided by operating activities | $ | 268,555 | $ | 262,206 | $ | (72,151 | ) | $ | 458,610 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Year Ended December 31, 2010 | Revenue-earning vehicles—Purchases | (46,155 | ) | (937,724 | ) | — | (983,879 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | (In Thousands of Dollars) | Revenue-earning vehicles—Proceeds from sales | 31,135 | 460,873 | — | 492,008 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Three Months Ended June 30, 2012 | Net change in cash & cash equivalents required minimum balance | 100,000 | — | — | 100,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In Millions of Dollars) | Net change in restricted cash and investments | 270 | 76,036 | — | 76,306 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, equipment and software—Purchases | (11,108 | ) | (88 | ) | — | (11,196 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | Property, equipment and software—Proceeds from sales | 324 | 29 | — | 353 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | (The Hertz | Subsidiaries | Guarantor | Corporation & | Dividends received | 191,675 | — | (191,675 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | Corporation) | Subsidiaries | Subsidiaries | Investment in subsidiary | (249,389 | ) | — | 249,389 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | Total revenues | $ | 3,961,435 | $ | 701,264 | $ | 5,350,348 | $ | (2,450,513 | ) | $ | 7,562,534 | Intercompany | (119,298 | ) | 5,583 | 113,715 | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Total revenues | $ | 1,074.90 | $ | 233.1 | $ | 1,493.10 | $ | (576.0 | ) | $ | 2,225.10 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses: | Net cash provided by/(used in) investing activities | (102,546 | ) | (395,291 | ) | 171,429 | (326,408 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Direct operating | 609.4 | 141.1 | 438.4 | — | 1,188.90 | Direct operating | 2,217,864 | 452,674 | 1,612,856 | — | 4,283,394 | CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt and other obligations: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation of revenue earning equipment and lease charges | 560.6 | 48 | 487.2 | (576.0 | ) | 519.8 | Depreciation of revenue earning equipment and lease charges | 1,938,416 | 200,252 | 2,179,992 | (2,450,513 | ) | 1,868,147 | Proceeds from vehicle debt and other obligations | — | 1,192,226 | (54,323 | ) | 1,137,903 | |||||||||||||||||||||||||||||||||||||||||||||||||
Payments of vehicle debt and other obligations | — | (1,081,350 | ) | 9,277 | (1,072,073 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative | 94.4 | 31.4 | 80.8 | — | 206.6 | Selling, general and administrative | 320,192 | 67,739 | 276,511 | — | 664,442 | Payments—non-vehicle debt | (148,125 | ) | — | — | (148,125 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common shares | 2,921 | — | — | 2,921 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | 56 | 9.1 | 74.2 | — | 139.3 | Interest expense, net of interest income | 297,276 | 20,068 | 396,880 | — | 714,224 | Net settlement of employee withholding taxes on share-based awards | (3,205 | ) | — | — | (3,205 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Financing issue costs | (1,997 | ) | (11,306 | ) | — | (13,303 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest income | — | (0.2 | ) | (0.3 | ) | — | (0.5 | ) | Other (income) expense, net | 9,915 | (3 | ) | (9,907 | ) | — | 5 | Dividends paid | — | (191,675 | ) | 191,675 | — | ||||||||||||||||||||||||||||||||||||||||||||||
Capital contribution from Parent | — | 245,907 | (245,907 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other (income) expense, net | — | — | (0.6 | ) | — | (0.6 | ) | Total expenses | 4,783,663 | 740,730 | 4,456,332 | (2,450,513 | ) | 7,530,212 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash provided by/(used in) financing activities | (150,406 | ) | 153,802 | (99,278 | ) | (95,882 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total expenses | 1,320.40 | 229.4 | 1,079.70 | (576.0 | ) | 2,053.50 | Income (loss) before income taxes, noncontrolling interest and equity in earnings (losses) of subsidiaries | (822,228 | ) | (39,466 | ) | 894,016 | — | 32,322 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
CHANGE IN CASH AND CASH EQUIVALENTS | 15,603 | 20,717 | — | 36,320 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes noncontrolling interest and equity in earnings (losses) of subsidiaries | (245.5 | ) | 3.7 | 413.4 | — | 171.6 | (Provision) benefit for taxes on income (loss) | 314,692 | 10,718 | (358,732 | ) | — | (33,322 | ) | CASH AND CASH EQUIVALENTS: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning of Period | 450,007 | 13,146 | — | 463,153 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Provision) benefit for taxes on income | 90.7 | (1.3 | ) | (160.1 | ) | — | (70.7 | ) | Equity in earnings (losses) of subsidiaries (net of tax) | 489,153 | (5,268 | ) | — | (483,885 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
End of Period | $ | 465,610 | $ | 33,863 | $ | — | $ | 499,473 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity in earnings (losses) of subsidiaries (net of tax) | 255.7 | (33.8 | ) | — | (221.9 | ) | — | Net income (loss) | (18,383 | ) | (34,016 | ) | 535,284 | (483,885 | ) | (1,000 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder | $ | 100.9 | $ | (31.4 | ) | $ | 253.3 | $ | (221.9 | ) | $ | 100.9 | Less: Net income attributable to noncontrolling interest | — | — | (17,383 | ) | — | (17,383 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder | $ | (18,383 | ) | $ | (34,016 | ) | $ | 517,901 | $ | (483,885 | ) | $ | (18,383 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In Millions of Dollars) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | For the Year Ended December 31, 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | (In Thousands of Dollars) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total revenues | $ | 2,042.90 | $ | 442.9 | $ | 2,834.30 | $ | (1,134.0 | ) | $ | 4,186.10 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses: | Parent | Guarantor | Non- | Eliminations | The Hertz | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Direct operating | 1,181.20 | 274.4 | 847.5 | — | 2,303.10 | (The Hertz | Subsidiaries | Guarantor | Corporation & | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation of revenue earning equipment and lease charges | 1,099.30 | 92.4 | 977.2 | (1,134.0 | ) | 1,034.90 | Net income (loss) | $ | 275,779 | $ | 62,195 | $ | 1,001,755 | $ | (1,063,950 | ) | $ | 275,779 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative | 198.6 | 56.9 | 158.8 | — | 414.3 | Other comprehensive income, net of tax | 1,522 | 121 | 6,816 | (6,937 | ) | 1,522 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | 119.6 | 19 | 150.2 | — | 288.8 | Comprehensive income (loss) | $ | 277,301 | $ | 62,316 | $ | 1,008,571 | $ | (1,070,887 | ) | $ | 277,301 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Interest income | (0.1 | ) | (0.4 | ) | (1.1 | ) | — | (1.6 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other (income) expense, net | — | — | (1.0 | ) | — | (1.0 | ) | CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Year Ended December 31, 2011 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total expenses | 2,598.60 | 442.3 | 2,131.60 | (1,134.0 | ) | 4,038.50 | (In Thousands of Dollars) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes noncontrolling interest and equity in earnings (losses) of subsidiaries | (555.7 | ) | 0.6 | 702.7 | — | 147.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Provision) benefit for taxes on income | 201.9 | (0.6 | ) | (296.2 | ) | — | (94.9 | ) | (The Hertz | Subsidiaries | Guarantor | Corporation & | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity in earnings (losses) of subsidiaries (net of tax) | 406.5 | (22.6 | ) | — | (383.9 | ) | — | Net income (loss) | $ | 210,489 | $ | 34,810 | $ | 758,068 | $ | (773,318 | ) | $ | 230,049 | |||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder | $ | 52.7 | $ | (22.6 | ) | $ | 406.5 | $ | (383.9 | ) | $ | 52.7 | Other comprehensive income, net of tax | (66,237 | ) | — | (34,619 | ) | 34,619 | (66,237 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss) | 144,252 | 34,810 | 723,449 | (738,699 | ) | 163,812 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Three Months Ended June 30, 2013 | Less: Comprehensive income attributable to noncontrolling interest | — | — | (19,560 | ) | — | (19,560 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In Millions of Dollars) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder | $ | 144,252 | $ | 34,810 | $ | 703,889 | $ | (738,699 | ) | $ | 144,252 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | For the Year Ended December 31, 2010 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 129.9 | $ | 99 | $ | 283 | $ | (382.0 | ) | $ | 129.9 | (In Thousands of Dollars) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | (22.2 | ) | (3.2 | ) | (24.4 | ) | 27.6 | (22.2 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss) | $ | 107.7 | $ | 95.8 | $ | 258.6 | $ | (354.4 | ) | $ | 107.7 | (The Hertz | Subsidiaries | Guarantor | Corporation & | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | (18,383 | ) | $ | (34,016 | ) | $ | 535,284 | $ | (483,885 | ) | $ | (1,000 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2013 | Other comprehensive income, net of tax | 41,154 | — | 28,427 | (28,427 | ) | 41,154 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In Millions of Dollars) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss) | 22,771 | (34,016 | ) | 563,711 | (512,312 | ) | 40,154 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | Less: Comprehensive income attributable to noncontrolling interest | — | — | (17,383 | ) | — | (17,383 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | Comprehensive income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder | $ | 22,771 | $ | (34,016 | ) | $ | 546,328 | $ | (512,312 | ) | $ | 22,771 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 156.4 | $ | 184.2 | $ | 538.7 | $ | (722.9 | ) | $ | 156.4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income, net of tax | (46.5 | ) | (0.4 | ) | (51.3 | ) | 51.8 | (46.4 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss) | 109.9 | 183.8 | 487.4 | (671.1 | ) | 110 | For the Year Ended December 31, 2012 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In Thousands of Dollars) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Three Months Ended June 30, 2012 | Parent | Guarantor | Non- | Eliminations | The Hertz | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In Millions of Dollars) | (The Hertz | Subsidiaries | Guarantor | Corporation & | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 1,677,648 | $ | 690,292 | $ | 1,155,789 | $ | (775,317 | ) | $ | 2,748,412 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | Cash flows from investing activities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | Net change in restricted cash and cash equivalents | 11,981 | 13,596 | (287,182 | ) | — | (261,605 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 100.9 | $ | (31.4 | ) | $ | 253.3 | $ | (221.9 | ) | $ | 100.9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue earning equipment expenditures | (88,120 | ) | (763,610 | ) | (8,761,509 | ) | — | (9,613,239 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income, net of tax | (42.0 | ) | — | (45.6 | ) | 45.6 | (42.0 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from disposal of revenue earning equipment | 79,390 | 276,342 | 6,769,364 | — | 7,125,096 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss) | 58.9 | (31.4 | ) | 207.7 | (176.3 | ) | 58.9 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and equipment expenditures | (173,053 | ) | (32,022 | ) | (107,711 | ) | — | (312,786 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) | Proceeds from disposal of property and equipment | 67,370 | 11,839 | 58,485 | — | 137,694 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In Millions of Dollars) | Capital contributions to subsidiaries | (4,267,118 | ) | — | — | 4,267,118 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Return of capital from subsidiaries | 1,829,256 | — | — | (1,829,256 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | Loan to Parent From Non-Guarantor | — | — | (385,108 | ) | 385,108 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 52.7 | $ | (22.6 | ) | $ | 406.5 | $ | (383.9 | ) | $ | 52.7 | Acquisitions, net of cash acquired | (1,708,520 | ) | (196,648 | ) | — | — | (1,905,168 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income, net of tax | (9.6 | ) | — | (16.4 | ) | 16.4 | (9.6 | ) | Proceeds from disposal of business | — | — | 84,497 | — | 84,497 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss) | 43.1 | (22.6 | ) | 390.1 | (367.5 | ) | 43.1 | Other investing activities | — | — | (1,779 | ) | — | (1,779 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash provided by (used in) investing activities | (4,248,814 | ) | (690,503 | ) | (2,630,943 | ) | 2,822,970 | (4,747,290 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | Cash flows from financing activities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2013 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In Millions of Dollars) | Proceeds from issuance of long-term debt | 2,210,000 | — | 27,280 | — | 2,237,280 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payment of long-term debt | (650,407 | ) | (18 | ) | (301,719 | ) | — | (952,144 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | Short-term borrowings: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | Proceeds | — | — | 438,387 | — | 438,387 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | (365.7 | ) | $ | 425.1 | $ | 1,811.90 | $ | (405.3 | ) | $ | 1,466.00 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payments | (26,775 | ) | — | (1,253,368 | ) | — | (1,280,143 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net change in restricted cash and cash equivalents | (1.0 | ) | 0.2 | 176.2 | — | 175.4 | Proceeds (payments) under the revolving lines of credit, net | 220,000 | (1,262 | ) | 1,054,426 | — | 1,273,164 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue earning equipment expenditures | (87.9 | ) | (347.7 | ) | (6,389.9 | ) | — | (6,825.5 | ) | Capital contributions received from parent | — | — | 4,267,118 | (4,267,118 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from disposal of revenue earning equipment | 47.7 | 16.9 | 3,678.20 | — | 3,742.80 | Loan to Parent From Non-Guarantor | 385,108 | — | — | (385,108 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and equipment expenditures | (99.1 | ) | (18.0 | ) | (51.0 | ) | — | (168.1 | ) | Payment of dividends and return of capital | — | — | (2,604,573 | ) | 2,604,573 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from disposal of property and equipment | 24.6 | 5.5 | 12.4 | — | 42.5 | Dividends paid | (25,000 | ) | — | — | — | (25,000 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital contributions to subsidiaries | (485.7 | ) | — | — | 485.7 | — | Proceeds from employee stock purchase plan | 4,275 | — | — | — | 4,275 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Return of capital from subsidiaries | 651 | — | — | (651.0 | ) | — | Loan with Hertz Global Holdings, Inc. | (13,220 | ) | — | — | — | (13,220 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan to Parent/Guarantor from Non-Guarantor | — | — | 57 | (57.0 | ) | — | Purchase of noncontrolling interest | (38,000 | ) | — | — | — | (38,000 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions, net of cash acquired | — | (2.8 | ) | (226.4 | ) | — | (229.2 | ) | Payment of financing costs | (35,215 | ) | (3,316 | ) | (10,902 | ) | — | (49,433 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from disposal of business | — | — | — | — | — | Net cash provided by (used in) financing activities | 2,030,766 | (4,596 | ) | 1,616,649 | (2,047,653 | ) | 1,595,166 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other investing activities | — | — | (2.0 | ) | — | (2.0 | ) | Effect of foreign exchange rate changes on cash and cash equivalents | — | — | 5,739 | — | 5,739 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash provided by (used in) investing activities | 49.6 | (345.9 | ) | (2,745.5 | ) | (222.3 | ) | (3,264.1 | ) | Net change in cash and cash equivalents during the period | (540,400 | ) | (4,807 | ) | 147,234 | — | (397,973 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Cash flows from financing activities: | Cash and cash equivalents at beginning of period | 565,002 | 7,385 | 358,821 | — | 931,208 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from issuance of long-term debt | 250 | — | 954.4 | — | 1,204.40 | Cash and cash equivalents at end of period | $ | 24,602 | $ | 2,578 | $ | 506,055 | $ | — | $ | 533,235 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Payment of long-term debt | (22.8 | ) | — | (297.9 | ) | — | (320.7 | ) | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Year Ended December 31, 2011 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term borrowings: | (In Thousands of Dollars) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds | — | — | 332 | — | 332 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payments | — | — | (435.9 | ) | — | (435.9 | ) | Parent | Guarantor | Non- | Eliminations | The Hertz | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds under the revolving lines of credit | 1,360.00 | 1.6 | 2,318.50 | — | 3,680.10 | Corporation) | Subsidiaries | Subsidiaries | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 1,000,597 | $ | 773,170 | $ | 1,038,124 | $ | (553,370 | ) | $ | 2,258,521 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payments under the revolving lines of credit | (735.0 | ) | (5.0 | ) | (1,477.9 | ) | — | (2,217.9 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital contributions received from parent | — | — | 485.7 | (485.7 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net change in restricted cash and cash equivalents | (28,570 | ) | (2,662 | ) | (70,534 | ) | — | (101,766 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan to Parent/Guarantor from Non-Guarantor | — | (57.0 | ) | — | 57 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue earning equipment expenditures | (142,134 | ) | (670,056 | ) | (8,642,121 | ) | — | (9,454,311 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payment of dividends and return of capital | — | — | (1,056.3 | ) | 1,056.30 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from disposal of revenue earning equipment | 163,330 | 170,522 | 7,516,590 | — | 7,850,442 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends paid to Parent | (479.7 | ) | — | — | — | (479.7 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and equipment expenditures | (189,562 | ) | (29,696 | ) | (62,437 | ) | — | (281,695 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from employee stock purchase plan | 2.4 | — | — | — | 2.4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from disposal of property and equipment | 23,952 | 9,263 | 20,599 | — | 53,814 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan with Hertz Global Holdings, Inc. | 12 | — | — | — | 12 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital contributions to subsidiaries | (3,549,088 | ) | — | — | 3,549,088 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payment of financing costs | (7.9 | ) | (0.8 | ) | (11.9 | ) | — | (20.6 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Return of capital from subsidiaries | 2,590,025 | — | — | (2,590,025 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash provided by (used in) financing activities | 379 | (61.2 | ) | 810.7 | 627.6 | 1,756.10 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan to Parent from Non-Guarantor | — | — | (490,273 | ) | 490,273 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effect of foreign exchange rate changes on cash and cash equivalents | — | — | (8.2 | ) | — | (8.2 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions, net of cash acquired | (214,384 | ) | (2,100 | ) | (10,597 | ) | — | (227,081 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net change in cash and cash equivalents during the period | 62.9 | 18 | (131.1 | ) | — | (50.2 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase of short-term investments, net | (32,891 | ) | — | — | — | (32,891 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents at beginning of period | 24.6 | 6.5 | 502.1 | — | 533.2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other investing activities | — | (13,602 | ) | 14,188 | — | 586 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents at end of period | $ | 87.5 | $ | 24.5 | $ | 371 | $ | — | $ | 483 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash provided by (used in) investing activities | (1,379,322 | ) | (538,331 | ) | (1,724,585 | ) | 1,449,336 | (2,192,902 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | Proceeds from issuance of long-term debt | 2,455,309 | — | 607,170 | — | 3,062,479 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In Millions of Dollars) | Payment of long-term debt | (3,596,295 | ) | (17 | ) | (52,988 | ) | — | (3,649,300 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term borrowings: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | Proceeds | — | — | 460,890 | — | 460,890 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | Payments | (29,224 | ) | — | (1,164,832 | ) | — | (1,194,056 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | (219.0 | ) | $ | 334.2 | $ | 1,409.30 | $ | (341.5 | ) | $ | 1,183.00 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds (payments) under the revolving lines of credit, net | (29,128 | ) | (229,778 | ) | 201,577 | — | (57,329 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interest | — | — | (23,100 | ) | — | (23,100 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net change in restricted cash and cash equivalents | 12.6 | 18.2 | 99.3 | — | 130.1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital contributions received from parent | — | — | 3,549,088 | (3,549,088 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue earning equipment expenditures | (73.8 | ) | (334.1 | ) | (5,303.1 | ) | — | (5,711.0 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payment of dividends and return of capital | (22,950 | ) | — | (3,143,395 | ) | 3,143,395 | (22,950 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from disposal of revenue earning equipment | 54.4 | 162.6 | 3,391.30 | — | 3,608.30 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from employee stock purchase plan | 3,577 | — | — | — | 3,577 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and equipment expenditures | (80.2 | ) | (24.2 | ) | (32.8 | ) | — | (137.2 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan to Parent from Non-Guarantor | 490,273 | — | — | (490,273 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from disposal of property and equipment | 44.3 | 4.2 | 7.9 | — | 56.4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan from Hertz Global Holdings, Inc. | (984 | ) | — | — | — | (984 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital contributions to subsidiaries | (2,215.9 | ) | — | — | 2,215.90 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payment of financing costs | (81,229 | ) | (2,817 | ) | (7,436 | ) | — | (91,482 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Return of capital from subsidiaries | 2,220.60 | — | — | (2,220.6 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash provided by (used in) financing activities | (810,651 | ) | (232,612 | ) | 426,974 | (895,966 | ) | (1,512,255 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions, net of cash acquired | — | (161.8 | ) | — | — | (161.8 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effect of foreign exchange rate changes on cash and cash equivalents | — | — | 3,838 | — | 3,838 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan to Parent from Non-Guarantor | — | — | (18.3 | ) | 18.3 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net decrease in cash and cash equivalents during the period | (1,189,376 | ) | 2,227 | (255,649 | ) | — | (1,442,798 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other investing activities | — | — | (0.6 | ) | — | (0.6 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents at beginning of period | 1,754,378 | 5,158 | 614,470 | — | 2,374,006 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash provided by (used in) investing activities | (38.0 | ) | (335.1 | ) | (1,856.3 | ) | 13.6 | (2,215.8 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents at end of period | $ | 565,002 | $ | 7,385 | $ | 358,821 | $ | — | $ | 931,208 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from issuance of long-term debt | 260 | — | 10.5 | — | 270.5 | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Year Ended December 31, 2010 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payment of long-term debt | (637.3 | ) | — | (5.8 | ) | — | (643.1 | ) | (In Thousands of Dollars) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term borrowings: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds | — | — | 246.7 | — | 246.7 | Parent | Guarantor | Non- | Eliminations | The Hertz | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payments | (26.8 | ) | — | (629.4 | ) | — | (656.2 | ) | Corporation) | Subsidiaries | Subsidiaries | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 337,055 | $ | 88,941 | $ | 2,193,486 | $ | (381,555 | ) | $ | 2,237,927 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds under the revolving lines of credit | 1,360.00 | 1.9 | 2,173.60 | — | 3,535.50 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payments under the revolving lines of credit | (950.0 | ) | (2.9 | ) | (1,038.8 | ) | — | (1,991.7 | ) | Net change in restricted cash and cash equivalents | 19,932 | (17,514 | ) | 158,098 | — | 160,516 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase of noncontrolling interest | (38.0 | ) | — | — | — | (38.0 | ) | Revenue earning equipment expenditures | (188,057 | ) | (96,452 | ) | (8,156,363 | ) | — | (8,440,872 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Capital contributions received from parent | — | — | 2,215.90 | (2,215.9 | ) | — | Proceeds from disposal of revenue earning equipment | 169,451 | 75,139 | 7,273,856 | — | 7,518,446 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payment of dividends and return of capital | (12.5 | ) | — | (2,562.1 | ) | 2,562.10 | (12.5 | ) | Property and equipment expenditures | (92,415 | ) | (14,137 | ) | (72,657 | ) | — | (179,209 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Repayment of Loan to Parent from Non-Guarantor | 18.3 | — | — | (18.3 | ) | — | Proceeds from disposal of property and equipment | 4,311 | 10,416 | 24,178 | — | 38,905 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from employee stock purchase plan | 2 | — | — | — | 2 | Capital contributions to subsidiaries | (1,544,332 | ) | — | — | 1,544,332 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan from Hertz Global Holdings, Inc. | (13.9 | ) | — | — | — | (13.9 | ) | Return of capital from subsidiaries | 1,877,095 | — | — | (1,877,095 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payment of financing costs | (4.2 | ) | (1.5 | ) | (1.2 | ) | — | (6.9 | ) | Acquisitions, net of cash acquired | (35 | ) | (43,789 | ) | (3,747 | ) | — | (47,571 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||
Net cash provided by (used in) financing activities | (42.4 | ) | (2.5 | ) | 409.4 | 327.9 | 692.4 | Purchase of short-term investments, net | 3,183 | 94 | 214 | — | 3,491 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effect of foreign exchange rate changes on cash and cash equivalents | — | — | (4.8 | ) | — | (4.8 | ) | Other investing activities | — | — | 2,726 | — | 2,726 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net decrease in cash and cash equivalents during the period | (299.4 | ) | (3.4 | ) | (42.4 | ) | — | (345.2 | ) | Net cash provided by (used in) investing activities | 249,133 | (86,243 | ) | (773,695 | ) | (332,763 | ) | (943,568 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents at beginning of period | 565 | 7.4 | 358.8 | — | 931.2 | Cash flows from financing activities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from issuance of long-term debt | 1,209,866 | — | 1,425,847 | — | 2,635,713 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents at end of period | $ | 265.6 | $ | 4 | $ | 316.4 | $ | — | $ | 586 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payment of long-term debt | (73,342 | ) | (68 | ) | (2,880,823 | ) | — | (2,954,233 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term borrowings: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds | — | — | 490,490 | — | 490,490 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payments | (2,615 | ) | — | (968,334 | ) | — | (970,949 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds (payments) under the revolving lines of credit, net | (18,907 | ) | (3,515 | ) | 1,048,492 | — | 1,026,070 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interest | — | — | (18,200 | ) | — | (18,200 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital contributions received from parent | — | — | 1,544,332 | (1,544,332 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payment of dividends and return of capital | (23,000 | ) | — | (2,258,650 | ) | 2,258,650 | (23,000 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from employee stock purchase plan | 3,208 | — | — | — | 3,208 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan from Hertz Global Holdings, Inc. | (6,173 | ) | — | — | — | (6,173 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Excess tax benefits from exercise of stock | (258 | ) | — | — | — | (258 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payment of financing costs | (29,111 | ) | — | (49,040 | ) | — | (78,151 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash provided by (used in) financing activities | 1,059,668 | (3,583 | ) | (1,665,886 | ) | 714,318 | 104,517 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effect of foreign exchange rate changes on cash and cash equivalents | — | — | (10,337 | ) | — | (10,337 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net decrease in cash and cash equivalents during the period | 1,645,856 | (885 | ) | (256,432 | ) | — | 1,388,539 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents at beginning of period | 108,522 | 6,043 | 870,902 | — | 985,467 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents at end of period | $ | 1,754,378 | $ | 5,158 | $ | 614,470 | $ | — | $ | 2,374,006 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BASIS_OF_PRESENTATION_AND_SUMM1
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - DOLLAR THRIFTY (Policies) | 12 Months Ended | ||
Dec. 31, 2012 | Dec. 31, 2011 | ||
Dollar Thrifty Automotive Group Inc. | |||
Basis of presentation and summary of significant accounting policies | |||
Estimates | Use of Estimates and Assumptions | Estimates—The preparation of the Company's consolidated financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts and disclosures in the consolidated financial statements. Actual results could differ materially from those estimates. | |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America, or “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, reserves for litigation and other contingencies, accounting for income taxes and related uncertain tax positions, pension and postretirement benefit costs, the fair value of assets and liabilities acquired in business combinations, the recoverability of long-lived assets, useful lives and impairment of long-lived tangible and intangible assets including goodwill, valuation of stock based compensation, public liability and property damage reserves, reserves for restructuring, allowance for doubtful accounts, and fair value of derivatives, among others. | |||
Cash and Cash Equivalents | Cash and Cash Equivalents—Cash and cash equivalents include cash on hand and on deposit, including highly liquid investments with initial maturities of three months or less. | ||
Cash and Cash Equivalents - Required Minimum Balance | Cash and Cash Equivalents—Required Minimum Balance—In 2009, the Company amended its Senior Secured Credit Facilities (hereinafter defined). Under the terms of that amendment, the Company was required to maintain a minimum of $100 million at all times. In February 2011, the Company further amended its Senior Secured Credit Facilities, eliminating the requirement to maintain a minimum of $100 million of cash and cash equivalents and replacing it with certain other covenants. | ||
Restricted Cash and Investments | Concentration of Credit Risk | Restricted Cash and Investments—Restricted cash and investments are restricted for the acquisition of vehicles and other specified uses under the rental car asset-backed note indenture and other agreements (Note 8). A portion of these funds is restricted due to the Like-Kind Exchange Program (hereinafter defined) for deferred tax gains on eligible vehicle remarketing. As permitted by the indenture, these funds are primarily held in highly rated money market funds with investments primarily in government and corporate obligations. Restricted cash and investments are excluded from cash and cash equivalents. Interest earned on restricted cash and investments was $0.4 million, $0.7 million and $3.2 million, for 2011, 2010 and 2009, respectively, and remains in restricted cash and investments. | |
Our cash and cash equivalents are invested in various investment grade institutional money market accounts and 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. We seek to mitigate such risks by spreading the risk across multiple counterparties and monitoring the risk profiles of these counterparties. In addition, we have credit risk from derivative financial instruments used in hedging activities. We limit our exposure relating to derivative financial instruments by diversifying the financial instruments among various counterparties, which consist of major financial institutions. | |||
Restricted Cash and Cash Equivalents | |||
Restricted cash and cash equivalents includes cash and cash equivalents that are not readily available for our normal disbursements. Restricted cash and cash equivalents are restricted for the purchase of revenue earning vehicles and other specified uses under our Fleet Debt facilities, for our Like-Kind Exchange Program, or “LKE Program,” and to satisfy certain of our self-insurance regulatory reserve requirements. These funds are primarily held in highly rated money market funds with investments primarily in government and corporate obligations. Restricted cash and cash equivalents are excluded from cash and cash equivalents. | |||
Concentration of Credit Risk | Concentration of Credit Risk—Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, cash and cash equivalents—required minimum balance, restricted cash and investments, interest rate swaps and caps, vehicle manufacturer receivables and trade receivables. The Company limits its exposure on cash and cash equivalents, cash and cash equivalents—required minimum balance and restricted cash and investments by investing in Aaa or P-1 rated funds and short-term time deposits with a diverse group of high quality financial institutions. The Company's exposure relating to interest rate swaps and caps is mitigated by diversifying the financial instruments among various counterparties, which consist of major financial institutions. Receivables from vehicle manufacturers consist primarily of amounts due under guaranteed residual, buyback, incentive and promotion programs. The Company's financial condition and results of operations could be adversely affected if one or more of its primary vehicle manufacturers were unable to meet their obligations to the Company. Concentrations of credit risk with respect to trade receivables are limited due to the large number of customers comprising the Company's customer base and their dispersion across different geographic areas. Additionally, the Company limits its exposure to credit risk through performing credit reviews and monitoring the financial strength of its significant accounts. | ||
Allowance for Doubtful Accounts | Receivables | Allowance for Doubtful Accounts—An allowance for doubtful accounts is generally established during the period in which receivables are recorded. The allowance is maintained at a level deemed appropriate based on loss experience and other factors affecting collectability. | |
Receivables are stated net of allowances for doubtful accounts and represent credit extended to manufacturers and customers that satisfy defined credit criteria. The estimate of the allowance for doubtful accounts is based on our historical experience and our judgment as to the likelihood of ultimate payment. Actual receivables are written-off against the allowance for doubtful accounts when we determine the balance will not be collected. Bad debt expense is reflected as a component of "Selling, general and administrative" in our consolidated statements of operations. | |||
Financing Issue Costs | Financing Issue Costs—Financing issue costs related to vehicle debt and the Senior Secured Credit Facilities are deferred and amortized to interest expense over the term of the related debt using the effective interest method. | ||
Revenue-Earning Vehicles and Related Vehicle Depreciation Expense | Revenue-Earning Vehicles and Related Vehicle Depreciation Expense—Revenue-earning vehicles are stated at cost, net of related discounts. At December 31, 2011, Non-Program Vehicles accounted for approximately 96% of the Company's total fleet. | ||
The Company must estimate the expected residual values of Non-Program Vehicles at the expected time of disposal to determine monthly depreciation rates. The estimation of residual values requires the Company to make assumptions regarding the age and mileage of the car at the time of disposal, as well as the general used vehicle market conditions at the time of sale, including the impact of seasonality on vehicle residuals. The Company evaluates estimated residual values at least quarterly, and adjusts depreciation rates accordingly, on a prospective basis. Differences between actual residual values and those estimated by the Company result in a gain or loss on disposal and are recorded as an adjustment to depreciation expense. Actual timing of disposal either shorter or longer than the life used for depreciation purposes could result in a loss or gain on sale. Vehicle rental companies bear residual value risk for these vehicles, which are referred to as "Non-Program Vehicles". Generally, the average holding term for Non-Program Vehicles is approximately 18 to 22 months. | |||
The Company is required to depreciate the vehicle according to the terms of the guaranteed depreciation or repurchase program ("Program Vehicles") and in doing so is guaranteed to receive the full net book value in proceeds upon the sale of the vehicle. In some cases, the sales proceeds are received directly from auctions, with any shortfall in value being paid by the vehicle manufacturer. With certain other vehicle manufacturers, the entire balance of proceeds from vehicle sales comes directly from the manufacturer. In either case, the Company bears the risk of collectability on the receivable from the vehicle manufacturer. The Company monitors its vehicle manufacturer receivables based on time outstanding, manufacturer strength and length of the relationship. Generally, the average holding term for Program Vehicles is approximately six to eight months. | |||
Property and Equipment | Generally, when revenue earning equipment is acquired, we estimate the period that we will hold the asset, primarily based on historical measures of the amount of rental activity (e.g., automobile mileage and equipment usage) and the targeted age of equipment at the time of disposal. We also estimate the residual value of the applicable revenue earning equipment at the expected time of disposal. The residual values for rental vehicles are affected by many factors, including make, model and options, age, physical condition, mileage, sale location, time of the year and channel of disposition (e.g., auction, retail, dealer direct). The residual value for rental equipment is affected by factors which include equipment age and amount of usage. Depreciation is recorded on a straight-line basis 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 vehicle and equipment sales can also be affected by external factors such as the economy, natural disasters, fuel prices and incentives offered by manufacturers of new cars. These key factors are considered when estimating future residual values and assessing depreciation rates. As a result of this ongoing assessment, we make periodic adjustments to depreciation rates of revenue earning equipment in response to changed market conditions. Upon disposal of revenue earning equipment, depreciation expense is adjusted for the difference between the net proceeds received and the remaining net book value. | Property and Equipment—Property and equipment are recorded at cost and are depreciated using principally the straight-line method over the estimated useful lives of the related assets. Estimated useful lives generally range from ten to 30 years for buildings and improvements and one to seven years for furniture and equipment. Leasehold improvements are amortized over the estimated useful lives of the related assets or leases, whichever is shorter. | |
Within Donlen, revenue earning equipment is under longer term lease agreements with our customers. These leases contain provisions whereby we have a contracted residual value guaranteed to us by the lessee, such that we do not experience any gains or losses on the disposal of these vehicles. Therefore depreciation rates on these vehicles are not adjusted at any point in time per the associated lease contract. | |||
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 | 3 to 50 years | ||
Furniture and fixtures | 1 to 15 years | ||
Capitalized internal use software | 1 to 15 years | ||
Service cars and service equipment | 1 to 13 years | ||
Other intangible assets | 3 to 20 years | ||
Leasehold improvements | The shorter of their economic lives or the lease term | ||
Software | Software—Software is recorded at cost and amortized using the straight-line method generally ranging from three to five years. The remaining useful life of software is evaluated annually to assess whether events and circumstances warrant a revision to the remaining amortization period. | ||
Website Development Costs | Website Development Costs—The Company capitalizes qualifying internal-use software development, including Website development, incurred subsequent to the completion of the preliminary project stage. Development costs are amortized over the shorter of the expected useful life of the software or five years. Costs related to planning, maintenance, and minor upgrades are expensed as incurred. | ||
Long-Lived Assets | Long-Lived Assets—The Company reviews the value of long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable based upon estimated future cash flows and records an impairment charge, equaling the excess of the carrying value over the estimated fair value, if the carrying value exceeds estimated future cash flows. | ||
Accounts Payable | Accounts Payable—Book overdrafts of $19.0 million and $17.0 million, which represent outstanding checks not yet presented to the bank, are included in accounts payable to reflect the Company's outstanding obligations at December 31, 2011 and 2010, respectively. These amounts do not represent bank overdrafts, which would constitute checks presented in excess of cash on hand, and would be effectively a loan to the Company. | ||
Derivative Instruments | Derivative Instruments | Derivative Instruments—The Company records all derivatives on the balance sheet as either assets or liabilities measured at their fair value and changes in the derivatives' fair value are recognized currently in earnings unless specific hedge accounting criteria are met. The Company has entered into interest rate swap and cap agreements, which do not qualify for hedge accounting treatment; therefore, the changes in the interest rate swap and cap agreements' fair values have been recognized as an (increase) decrease in fair value of derivatives in the consolidated statements of income. The Company has also entered into interest rate swap agreements which constituted cash flow hedges and qualified for hedge accounting treatment; therefore, changes in fair value are recorded in accumulated other comprehensive loss (Note 9). All cash flows associated with cash flow hedges are classified in operating activities in the Consolidated Statements of Cash Flows. | |
We are exposed to a variety of market risks, including the effects of changes in interest rates, gasoline and diesel fuel prices and foreign currency exchange rates. We manage our exposure to these market risks through our regular operating and financing activities and, when deemed appropriate, through the use of derivative financial instruments. Derivative financial instruments are viewed as risk management tools and have not been used for speculative or trading purposes. In addition, derivative financial instruments are entered into with a diversified group of major financial institutions in order to manage our exposure to counterparty nonperformance on such instruments. We account for all derivatives in accordance with GAAP, which requires that all derivatives be recorded on the balance sheet as either assets or liabilities measured at their fair value. The effective portion of changes in fair value of derivatives designated as cash flow hedging instruments is recorded as a component of other comprehensive income. The ineffective portion is recognized currently in earnings within the same line item as the hedged item, based upon the nature of the hedged item. For derivative instruments that are not part of a qualified hedging relationship, the changes in their fair value are recognized currently in earnings. See Note 14—Financial Instruments. | |||
Vehicle Insurance Reserves | Vehicle Insurance Reserves—Provisions for public liability and property damage and supplemental liability insurance ("SLI") on self-insured claims are made by charges to direct vehicle and operating expense. Accruals for such charges are based upon actuarially determined evaluations of estimated ultimate liabilities on reported and unreported claims, prepared on a semi-annual basis. Historical data related to the amount and timing of payments for self-insured claims is utilized in preparing the actuarial evaluations. The accrual for public liability and property damage claims is discounted based upon the actuarially determined estimated timing of payments to be made in the future. The Company records expense related to public liability and property damage and SLI on a monthly basis based on rental volume and projections of ultimate losses, expenses, premiums and administrative costs that are derived from historical accident claim experience and trends. Management reviews the actual timing of payments as compared with the semi-annual actuarial estimate of timing of payments and has determined that there has been no material differences in the timing of payments for each of the three years in the period ended December 31, 2011. Because of less predictability in the estimated timing of payments, self-insured reserves for SLI are not discounted. | ||
Foreign Currency Translation | Foreign Currency Translation and Transactions | Foreign Currency Translation—Foreign assets and liabilities are translated using the exchange rate in effect at the balance sheet date, and results of operations are translated using an average rate for the period. Translation adjustments are accumulated and reported as a component of accumulated other comprehensive loss. | |
Assets and liabilities of international subsidiaries are translated at the rate of exchange in effect on the balance sheet date; income and expenses are translated at the average rate of exchange prevailing during the year. The related translation adjustments are reflected in “Accumulated other comprehensive loss” in the equity section of our consolidated balance sheets. As of December 31, 2012 and 2011, the accumulated foreign currency translation gain was $102.7 million and $91.3 million, respectively. Foreign currency gains and losses resulting from transactions are included in earnings. | |||
Revenue Recognition | Revenue Recognition | Revenue Recognition—Revenues from vehicle rentals are recognized as earned on a daily basis under the related rental contracts with customers. Revenues from leasing vehicles to franchisees are principally under operating leases with fixed monthly payments and are recognized ratably as earned over the lease terms. Revenues from fees and services include providing sales and marketing, reservations, information systems and other services to franchisees. Revenues from these services are generally based on a percentage of franchisee rental revenue or upon providing reservations and are recognized as earned on a monthly basis. Initial franchise fees are recognized upon substantial completion of all material services and conditions of the franchise sale, which coincides with the date of sale and commencement of operations by the franchisee. | |
Rental and rental related revenue (including cost reimbursements from customers where we consider ourselves to be the principal versus an agent) are recognized over the period the revenue earning equipment is rented or leased based on the terms of the rental or leasing contract. Maintenance management administrative fees are recognized monthly and maintenance management service revenue is recognized when services are performed. Revenue related to new equipment sales and consumables is recognized at the time of delivery to, or pick-up by, the customer and when collectability is reasonably assured. Fees from our licensees are recognized over the period the underlying licensees' revenue is earned (over the period the licensees' revenue earning equipment is rented). Certain truck and equipment leases are originated with the intention of syndicating to banks, and upon the sale of rights to these direct financing leases, the net gain is recorded in revenue. | |||
Sales tax amounts collected from customers have been recorded on a net basis. | |||
Advertising Costs | Advertising | Advertising Costs—Advertising costs are primarily expensed as incurred. The Company incurred advertising expense of $20.1 million, $20.9 million and $21.2 million, for 2011, 2010 and 2009, respectively. | |
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” in our consolidated statements of operations and for the years ended December 31, 2012, 2011 and 2010 were $158.0 million, $145.8 million and $133.8 million, respectively. | |||
Environmental Costs | Environmental Liabilities | Environmental Costs—The Company's operations include the storage of gasoline in underground storage tanks at certain company-owned stores. Liabilities incurred in connection with the remediation of accidental fuel discharges are recorded when it is probable that obligations have been incurred and the amounts can be reasonably estimated. | |
The use of automobiles and other vehicles is subject to various governmental controls designed to limit environmental damage, including that caused by emissions and noise. Generally, these controls are met by the manufacturer, except in the case of occasional equipment failure requiring repair by us. To comply with environmental regulations, measures are taken at certain locations to reduce the loss of vapor during the fueling process and to maintain, upgrade and replace underground fuel storage tanks. We also incur and provide for expenses for the cleanup of petroleum discharges and other alleged violations of environmental laws arising from the disposition of waste products. We do not believe that we will be required to make any material capital expenditures for environmental control facilities or to make any other material expenditures to meet the requirements of governmental authorities in this area. Liabilities for these expenditures are recorded at undiscounted amounts when it is probable that obligations have been incurred and the amounts can be reasonably estimated. | |||
Operating Leases | Operating Leases— | ||
Contingent Rent—The Company recognizes contingent rent expense associated with certain airport concession agreements monthly as incurred when the Company's achievement of the annual targeted qualifying revenue is probable. | |||
Scheduled Rent Increases—The Company recognizes scheduled rent increases on a straight-line basis over the remaining lease term. | |||
Income Taxes | Income Taxes | Income Taxes—The Company has provided for income taxes on its separate taxable income or loss and other tax attributes. Deferred income taxes are provided for the temporary differences between the financial reporting basis and the tax basis of the Company's assets and liabilities. A valuation allowance is recorded for deferred income tax assets when management determines it is more likely than not that such assets will not be realized. The Company has established a valuation allowance related to DTG Canada and a portion of the Company's net operating losses for state tax purposes. The Company evaluates its tax policies quarterly to identify uncertain tax positions. | |
Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates is recognized in the statement of operations in the period that includes the enactment date. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not 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 change to reflect tax on these amounts. See Note 9—Taxes on Income. | |||
Earnings Per Share | Earnings Per Share—Basic earnings per share ("EPS") is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted EPS is based on the combined weighted average number of common shares and dilutive potential common shares outstanding which include, where appropriate, the assumed exercise of options. In computing diluted EPS, the Company utilizes the treasury stock method. | ||
Stock-Based Compensation | Stock‑Based Compensation | Stock-Based Compensation—The Company uses the fair value-based method of accounting for stock-based compensation. All performance share, restricted stock and stock option awards are accounted for using the fair value-based method for the 2011, 2010 and 2009 periods. The fair value of these common shares is determined based on the closing market price of the Company's common shares at the specific date on which the shares were granted. In 2011 and 2010, the Company did not issue any stock options. In 2009, the Company issued approximately 1,120,000 stock options at a weighted average grant-date fair value per share of $4.44. | |
We measure 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 to be recognized over the period during which the employee is required to provide service in exchange for the award. We have 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 life, dividend yield and risk-free interest rate. See Note 7-Stock‑Based Compensation. | |||
We are using equity accounting for restricted stock unit and performance stock unit 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 a performance condition. For performance stock units, we re-assess the probability of achieving the applicable performance condition each reporting period and adjust the recognition of expense accordingly. The performance condition is not considered in determining the grant date fair value. | |||
New Accounting Standards | Recently Issued Accounting Pronouncements | New Accounting Standards— | |
In December 2011, the FASB issued Accounting Standards Update, or "ASU," No. 2011-11, "Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities," or "ASU 2011-11" to amend the requirement for an entity to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. An entity should provide the disclosures required by those amendments retrospectively for all comparative periods presented. ASU 2011-11 is effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. We plan to adopt ASU 2011-11 on January 1, 2013, as required, but do not believe this guidance will have a significant impact on our consolidated financial statements or financial statement disclosures. | |||
In July 2012, the FASB issued ASU No. 2012-02, "Intangibles—Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment," or "ASU 2012-02" which states that an entity has the option first to assess qualitative factors to determine whether the existence of events and circumstances indicates that it is more likely than not that an indefinite-lived intangible asset is impaired. If, after assessing the totality of events and circumstances, an entity concludes that it is not more likely than not that the indefinite-lived intangible asset is impaired, then the entity is not required to take further action. However, if an entity concludes otherwise, then it is required to determine the fair value of the indefinite-lived intangible asset and perform the quantitative impairment test by comparing the fair value with the carrying amount. This provision is effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. This accounting guidance is not expected to have a material impact on our consolidated financial statements or financial statement disclosures. | In January 2010, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") ASU 2010-06, "Fair Value Measurements and Disclosures (ASC Topic 820): Improving Disclosures about Fair Value Measurements" which amends Accounting Standards Codification ("ASC") Subtopic 820, "Fair Value Measurements and Disclosures" ("ASU 2010-06") to add new requirements for disclosures about transfers into and out of Levels 1 and 2 and separate disclosures about purchases, sales, issuances, and settlements relating to Level 3 measurements. ASU 2010-06 also clarifies existing fair value disclosures about the level of disaggregation and about inputs and valuation techniques used to measure fair value. The Company adopted the provisions of ASU 2010-06 regarding disclosures about transfers into and out of Levels 1 and 2 as required on January 1, 2010 and adopted the remaining provisions of ASU 2010-06 regarding separate disclosures about purchases, sales, issuances, and settlements relating to Level 3 measurements as required on January 1, 2011. The adoption of this latest provision had no impact on the Company's financial statements as the Company has no Level 3 measurements. | ||
In February 2013, the FASB issued ASU No. 2013-02, "Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income," or "ASU 2013-02" which requires disclosure of significant amounts reclassified out of accumulated other comprehensive income by component and their corresponding effect on the respective line items of net income. This guidance is effective for reporting periods beginning after December 15, 2012 and is not expected to have a material impact on our consolidated financial statements or financial statement disclosures. | |||
In May 2011, the FASB issued ASU 2011-04, "Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRS" ("ASU 2011-04"), which amends U.S. GAAP to converge U.S. GAAP and International Financial Reporting Standards ("IFRS") by changing the wording used to describe many of the requirements in U.S. GAAP for measuring fair value and for disclosing information about fair value measurements. ASU 2011-04 is effective for interim and annual periods beginning after December 15, 2011; early adoption is not permitted. The Company adopted ASU 2011-04 on January 1, 2012, as required, but does not believe this guidance will have a significant impact on the Company's consolidated financial statements. | |||
In June 2011, the FASB issued ASU 2011-05, "Comprehensive Income—Presentation of Comprehensive Income" ("ASU 2011-05"). ASU 2011-05 eliminates the option to present the components of other comprehensive income as part of the statement of stockholders' equity. It requires an entity to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. In December 2011, the FASB issued ASU 2011-12, "Comprehensive Income—Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in ASU 2011-05," to defer the effective date of the specific requirement to present items that are reclassified out of accumulated other comprehensive income to net income alongside their respective components of net income and other comprehensive income. All other provisions of this update, which are to be applied retrospectively, are effective for fiscal years, and interim periods within those years, beginning after December 15, 2011. The Company adopted ASU 2011-05 and ASU 2011-12 on January 1, 2012, as required. | |||
In December 2011, the FASB issued ASU 2011-11, "Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities" ("ASU 2011-11") to amend the requirement for an entity to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. An entity should provide the disclosures required by those amendments retrospectively for all comparative periods presented. ASU 2011-11 is effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. The Company plans to adopt ASU 2011-11 on January 1, 2013, as required, but does not believe this guidance will have a significant impact on the Company's consolidated financial statements. | |||
EARNINGS_PER_SHARE_DOLLAR_THRI4
EARNINGS PER SHARE - DOLLAR THRIFTY (Tables) (Dollar Thrifty Automotive Group Inc.) | 9 Months Ended | 12 Months Ended | |||||||||||||||||||||||
Sep. 30, 2012 | Dec. 31, 2011 | ||||||||||||||||||||||||
Dollar Thrifty Automotive Group Inc. | |||||||||||||||||||||||||
Earnings per share | |||||||||||||||||||||||||
Schedule of computation of weighted average common and common equivalent shares used in the calculation of basic and diluted EPS | The computation of weighted-average common and common equivalent shares used in the calculation of basic and diluted EPS is shown in the following table (in thousands, except share and per share data): | ||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||
2012 | 2011 | 2012 | 2011 | Year Ended December 31, | |||||||||||||||||||||
Net income | $ | 55,500 | $ | 66,621 | $ | 145,298 | $ | 125,649 | 2011 | 2010 | 2009 | ||||||||||||||
(In Thousands, Except Share and Per | |||||||||||||||||||||||||
Basic EPS: | Share Data) | ||||||||||||||||||||||||
Weighted-average common shares | 27,905,118 | 28,958,718 | 28,217,067 | 28,872,747 | Net income | $ | 159,550 | $ | 131,216 | $ | 45,022 | ||||||||||||||
Basic EPS | $ | 1.99 | $ | 2.3 | $ | 5.15 | $ | 4.35 | Basic EPS: | ||||||||||||||||
Weighted average common shares | 28,965,187 | 28,623,108 | 22,687,077 | ||||||||||||||||||||||
Diluted EPS: | |||||||||||||||||||||||||
Weighted-average common shares | 27,905,118 | 28,958,718 | 28,217,067 | 28,872,747 | Basic EPS | $ | 5.51 | $ | 4.58 | $ | 1.98 | ||||||||||||||
Shares contingently issuable: | |||||||||||||||||||||||||
Stock options | 803,982 | 1,964,321 | 854,272 | 1,984,419 | Diluted EPS: | ||||||||||||||||||||
Performance awards and non-vested shares | 127,418 | 113,734 | 111,431 | 90,581 | Weighted average common shares | 28,965,187 | 28,623,108 | 22,687,077 | |||||||||||||||||
Employee compensation shares deferred | 24,577 | 46,604 | 29,805 | 48,440 | Shares contingently issuable: | ||||||||||||||||||||
Director compensation shares deferred | 224,535 | 221,452 | 223,952 | 220,554 | Stock options | 1,913,783 | 1,226,089 | 762,673 | |||||||||||||||||
Performance awards and non-vested shares | 94,261 | 125,225 | 255,775 | ||||||||||||||||||||||
Shares applicable to diluted | 29,085,630 | 31,304,829 | 29,436,527 | 31,216,741 | Employee compensation shares deferred | 47,232 | 49,374 | 105,402 | |||||||||||||||||
Director compensation shares deferred | 220,778 | 221,485 | 155,611 | ||||||||||||||||||||||
Diluted EPS | $ | 1.91 | $ | 2.13 | $ | 4.94 | $ | 4.03 | |||||||||||||||||
Shares applicable to diluted | 31,241,241 | 30,245,281 | 23,966,538 | ||||||||||||||||||||||
Diluted EPS | $ | 5.11 | $ | 4.34 | $ | 1.88 | |||||||||||||||||||
RECEIVABLES_DOLLAR_THRIFTY_Tab1
RECEIVABLES - DOLLAR THRIFTY (Tables) (Dollar Thrifty Automotive Group Inc.) | 9 Months Ended | 12 Months Ended | ||||||||||||||
Sep. 30, 2012 | Dec. 31, 2011 | |||||||||||||||
Dollar Thrifty Automotive Group Inc. | ||||||||||||||||
RECEIVABLES | ||||||||||||||||
Schedule of receivables | Receivables consist of the following (in thousands): | |||||||||||||||
September 30, | December 31, | |||||||||||||||
2012 | 2011 | |||||||||||||||
Trade accounts receivable and other | $ | 85,476 | $ | 74,403 | December 31, | |||||||||||
Vehicle manufacturer receivables | 41,078 | 21,510 | 2011 | 2010 | ||||||||||||
Car sales receivable | 3,826 | 2,287 | (In Thousands) | |||||||||||||
Trade accounts receivable and other | $ | 74,403 | $ | 68,528 | ||||||||||||
130,380 | 98,200 | Vehicle manufacturer receivables | 21,510 | 4,543 | ||||||||||||
Less: Allowance for doubtful accounts | (2,163 | ) | (2,840 | ) | Car sales receivable | 2,287 | 1,100 | |||||||||
$ | 128,217 | $ | 95,360 | 98,200 | 74,171 | |||||||||||
Less: Allowance for doubtful accounts | (2,840 | ) | (4,715 | ) | ||||||||||||
$ | 95,360 | $ | 69,456 | |||||||||||||
REVENUEEARNING_VEHICLES_DOLLAR1
REVENUE-EARNING VEHICLES - DOLLAR THRIFTY (Tables) (Dollar Thrifty Automotive Group Inc.) | 12 Months Ended | |||||||
Dec. 31, 2011 | ||||||||
Dollar Thrifty Automotive Group Inc. | ||||||||
Revenue-earnings vehicles | ||||||||
Schedule of revenue-earning vehicles | ||||||||
December 31, | ||||||||
2011 | 2010 | |||||||
(In Thousands) | ||||||||
Revenue-earning vehicles | $ | 1,858,766 | $ | 1,668,473 | ||||
Less: Accumulated depreciation | (390,931 | ) | (326,651 | ) | ||||
$ | 1,467,835 | $ | 1,341,822 | |||||
VEHICLE_DEPRECIATION_AND_LEASE4
VEHICLE DEPRECIATION AND LEASE CHARGES, NET - DOLLAR THRIFTY (Tables) (Dollar Thrifty Automotive Group Inc.) | 9 Months Ended | 12 Months Ended | |||||||||||||||||||||||
Sep. 30, 2012 | Dec. 31, 2011 | ||||||||||||||||||||||||
Dollar Thrifty Automotive Group Inc. | |||||||||||||||||||||||||
Vehicle depreciation and lease charges, net | |||||||||||||||||||||||||
Schedule of vehicle depreciation and lease charges | Vehicle depreciation and lease charges include the following (in thousands): | ||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||
2012 | 2011 | 2012 | 2011 | Year Ended December 31, | |||||||||||||||||||||
Depreciation of revenue-earning vehicles and other | $ | 94,323 | $ | 80,667 | $ | 230,391 | $ | 247,112 | 2011 | 2010 | 2009 | ||||||||||||||
Net gains from disposal of revenue-earning vehicles | (5,192 | ) | (17,368 | ) | (42,023 | ) | (43,129 | ) | (In Thousands) | ||||||||||||||||
Depreciation of revenue-earning vehicles and other | $ | 317,844 | $ | 362,284 | $ | 461,178 | |||||||||||||||||||
$ | 89,131 | $ | 63,299 | $ | 188,368 | $ | 203,983 | Net gains from disposal of revenue-earning vehicles | (46,887 | ) | (63,084 | ) | (35,086 | ) | |||||||||||
$ | 270,957 | $ | 299,200 | $ | 426,092 | ||||||||||||||||||||
Schedule of average gain on Non-Program Vehicles | |||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | Year Ended December 31, | |||||||||||||||||||||||
September 30, | September 30, | 2011 | 2010 | 2009 | |||||||||||||||||||||
2012 | 2011 | 2012 | 2011 | Number of Non-Program Vehicles sold | 39,398 | 57,100 | 50,099 | ||||||||||||||||||
Number of Non-Program Vehicles sold | 15,463 | 15,441 | 48,530 | 30,787 | Average gain on vehicles sold (per vehicle) | $ | 1,190 | $ | 1,105 | $ | 700 | ||||||||||||||
Average gain on vehicles sold (per vehicle) | $ | 336 | $ | 1,125 | $ | 866 | $ | 1,401 | |||||||||||||||||
Schedule of components of vehicle depreciation per vehicle per month | |||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | Year Ended December 31, | |||||||||||||||||||||||
September 30, | September 30, | 2011 | 2010 | 2009 | |||||||||||||||||||||
2012 | 2011 | 2012 | 2011 | Average depreciable fleet (units) | 108,127 | 103,207 | 105,301 | ||||||||||||||||||
Average depreciable fleet (units) | 120,757 | 113,719 | 113,968 | 110,125 | Average depreciation rate | $ | 245 | $ | 293 | $ | 365 | ||||||||||||||
Average depreciation rate | $ | 260 | $ | 236 | $ | 225 | $ | 249 | Average gain on vehicles sold | (36 | ) | (51 | ) | (28 | ) | ||||||||||
Average gain on vehicles sold | (14 | ) | (50 | ) | (41 | ) | (43 | ) | |||||||||||||||||
Average vehicle depreciation and lease charges, net | $ | 209 | $ | 242 | $ | 337 | |||||||||||||||||||
Average vehicle depreciation and lease charges, net | $ | 246 | $ | 186 | $ | 184 | $ | 206 | |||||||||||||||||
PROPERTY_AND_EQUIPMENT_DOLLAR_1
PROPERTY AND EQUIPMENT - DOLLAR THRIFTY (Tables) (Dollar Thrifty Automotive Group Inc.) | 12 Months Ended | |||||||
Dec. 31, 2011 | ||||||||
Dollar Thrifty Automotive Group Inc. | ||||||||
PROPERTY AND EQUIPMENT | ||||||||
Schedule of the major classes of property and equipment | ||||||||
December 31, | ||||||||
2011 | 2010 | |||||||
(In Thousands) | ||||||||
Land | $ | 12,009 | $ | 12,022 | ||||
Buildings and improvements | 21,382 | 23,325 | ||||||
Furniture and equipment | 81,014 | 81,847 | ||||||
Leasehold improvements | 128,938 | 128,742 | ||||||
Construction in progress | 5,293 | 2,824 | ||||||
248,636 | 248,760 | |||||||
Less: Accumulated depreciation and amortization | (164,358 | ) | (158,532 | ) | ||||
$ | 84,278 | $ | 90,228 | |||||
SOFTWARE_DOLLAR_THRIFTY_Tables
SOFTWARE - DOLLAR THRIFTY (Tables) (Dollar Thrifty Automotive Group Inc.) | 12 Months Ended | |||||||
Dec. 31, 2011 | ||||||||
Dollar Thrifty Automotive Group Inc. | ||||||||
Software | ||||||||
Schedule of software | ||||||||
December 31, | ||||||||
2011 | 2010 | |||||||
(In Thousands) | ||||||||
Software | $ | 83,501 | $ | 80,144 | ||||
Less: Accumulated amortization | (61,966 | ) | (55,967 | ) | ||||
$ | 21,535 | $ | 24,177 | |||||
DEBT_AND_OTHER_OBLIGATIONS_DOL4
DEBT AND OTHER OBLIGATIONS - DOLLAR THRIFTY (Tables) | 6 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt and other obligations | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of debt and other obligations | Our debt consists of the following (in millions of dollars): | Our debt consists of the following (in millions of dollars): | Debt and other obligations as of September 30, 2012 and December 31, 2011 consist of the following (in thousands): | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Facility | Average | Fixed or | Maturity | June 30, | December 31, | Facility | Average Interest | Fixed or | Maturity | December 31, | December 31, | September 30, | December 31, | |||||||||||||||||||||||||||||||||||||||||||
Interest Rate | Floating | 2013 | 2012 | Rate at | Floating | 2012 | 2011 | 2012 | 2011 | |||||||||||||||||||||||||||||||||||||||||||||||
at June 30, | Interest | December 31, | Interest | Vehicle debt and other obligations | December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||
2013(1) | Rate | 2012(1) | Rate | Asset-backed medium-term notes: | 2011 | 2010 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate Debt | Corporate Debt | Series 2011-2 notes (matures May 2015) | $ | 400,000 | $ | 400,000 | (In Thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||
Senior Term Facility | 3.26 | % | Floating | Mar-18 | $ | 2,114.80 | $ | 2,125.50 | Senior Term Facility | 3.75 | % | Floating | Mar-18 | $ | 2,125.50 | $ | 1,389.50 | Series 2011-1 notes (matures February 2015) | 500,000 | 500,000 | Vehicle debt and other obligations | |||||||||||||||||||||||||||||||||||
Senior ABL Facility | 2.89 | % | Floating | Mar-16 | 1,005.80 | 195 | Senior ABL Facility | 2.47 | % | Floating | Mar-16 | 195 | — | Series 2007-1 notes (matured July 2012) | — | 500,000 | Asset-backed medium-term notes | |||||||||||||||||||||||||||||||||||||||
Senior Notes(2) | 6.58 | % | Fixed | 4/2018 - 10/2022 | 3,900.00 | 3,650.00 | Senior Notes(2) | 6.74 | % | Fixed | 10/2018 - 10/2022 | 3,650.00 | 2,638.60 | Series 2011-2 notes (matures May 2015) | $ | 400,000 | $ | — | ||||||||||||||||||||||||||||||||||||||
Promissory Notes | 6.96 | % | Fixed | 6/2012 - 1/2028 | 48.7 | 48.7 | Promissory Notes | 6.96 | % | Fixed | 6/2012 - 1/2028 | 48.7 | 224.7 | 900,000 | 1,400,000 | Series 2011-1 notes (matures February 2015) | 500,000 | — | ||||||||||||||||||||||||||||||||||||||
Other Corporate Debt | 3.51 | % | Floating | Various | 58.5 | 88.7 | Other Corporate Debt | 4.4 | % | Floating | Various | 88.7 | 49.6 | Discounts on asset-backed medium-term notes | (32 | ) | (45 | ) | Series 2007-1 notes (matures July 2012) | 500,000 | 500,000 | |||||||||||||||||||||||||||||||||||
Unamortized Net Premium (Corporate) | 3.2 | 3.3 | Unamortized Net (Discount) Premium (Corporate) | 3.3 | (6.9 | ) | Series 2006-1 notes (matured May 2011) | — | 500,000 | |||||||||||||||||||||||||||||||||||||||||||||||
Asset-backed medium-term notes, net of discount | 899,968 | 1,399,955 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Corporate Debt | 7,131.00 | 6,111.20 | Total Corporate Debt | 6,111.20 | 4,295.50 | Series 2010-3 variable funding notes (matures December 2013) | 510,000 | — | 1,400,000 | 1,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||
CAD Series 2012-1 notes (Canadian fleet financing) (matures August 2014) | 71,169 | — | Discounts on asset-backed medium-term notes | (45 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Fleet Debt | Fleet Debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
HVF U.S. ABS Program | HVF U.S. ABS Program | Total debt and other obligations | $ | 1,481,137 | $ | 1,399,955 | Asset-backed medium-term notes, net of discount | 1,399,955 | 1,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||
HVF U.S. Fleet Variable Funding Notes: | HVF U.S. Fleet Variable Funding Notes: | Series 2010-1 variable funding note (terminated October 2011) | — | 200,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
HVF Series 2009-1(3) | 1.04 | % | Floating | Mar-14 | 2,590.00 | 2,350.00 | HVF Series 2009-1(3) | 1.11 | % | Floating | Mar-14 | 2,350.00 | 1,000.00 | CAD Series 2010-1 note (Canadian fleet financing) (terminated April 2011) | — | 49,118 | ||||||||||||||||||||||||||||||||||||||||
HVF Series 2010-2(3) | N/A | Floating | Mar-13 | — | 170 | |||||||||||||||||||||||||||||||||||||||||||||||||||
2,590.00 | 2,350.00 | HVF Series 2011-2(3) | N/A | Floating | Apr-12 | — | 175 | Total vehicle debt and other obligations | 1,399,955 | 1,249,118 | ||||||||||||||||||||||||||||||||||||||||||||||
HVF U.S. Fleet Medium Term Notes | 2,350.00 | 1,345.00 | Non-vehicle debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
HVF Series 2009-2(3) | 5.37 | % | Fixed | 3/2013 - 3/2015 | 807.5 | 1,095.90 | Term Loan | — | 148,125 | |||||||||||||||||||||||||||||||||||||||||||||||
HVF Series 2010-1(3) | 3.77 | % | Fixed | 2/2014 - 2/2018 | 749.8 | 749.8 | HVF U.S. Fleet Medium Term Notes | |||||||||||||||||||||||||||||||||||||||||||||||||
HVF Series 2011-1(3) | 2.86 | % | Fixed | 3/2015 - 3/2017 | 598 | 598 | HVF Series 2009-2(3) | 5.11 | % | Fixed | 3/2013 - 3/2015 | 1,095.90 | 1,384.30 | Total non-vehicle debt | — | 148,125 | ||||||||||||||||||||||||||||||||||||||||
HVF Series 2013-1(3) | 1.68 | % | Fixed | 8/2016 - 8/2018 | 950 | — | HVF Series 2010-1(3) | 3.77 | % | Fixed | 2/2014 - 2/2018 | 749.8 | 749.8 | |||||||||||||||||||||||||||||||||||||||||||
HVF Series 2011-1(3) | 2.86 | % | Fixed | 3/2015 - 3/2017 | 598 | 598 | Total debt and other obligations | $ | 1,399,955 | $ | 1,397,243 | |||||||||||||||||||||||||||||||||||||||||||||
3,105.30 | 2,443.70 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
2,443.70 | 2,732.10 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
RCFC U.S. ABS Program | RCFC U.S. ABS Program | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
RCFC U.S. Fleet Variable Funding Notes | RCFC U.S. Fleet Variable Funding Notes | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
RCFC Series 2010-3 Notes(3)(4) | 1.03 | % | Floating | Dec-13 | 540 | 519 | RCFC Series 2010-3 Notes(3)(4) | 1.06 | % | Floating | Dec-13 | 519 | — | |||||||||||||||||||||||||||||||||||||||||||
RCFC U.S. Fleet Medium Term Notes | RCFC U.S. Fleet Medium Term Notes | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
RCFC Series 2011-1 Notes(3)(4) | 2.81 | % | Fixed | Feb-15 | 500 | 500 | RCFC Series 2011-1 Notes(3)(4) | 2.81 | % | Fixed | Feb-15 | 500 | — | |||||||||||||||||||||||||||||||||||||||||||
RCFC Series 2011-2 Notes(3)(4) | 3.21 | % | Fixed | May-15 | 400 | 400 | RCFC Series 2011-2 Notes(3)(4) | 3.21 | % | Fixed | May-15 | 400 | — | |||||||||||||||||||||||||||||||||||||||||||
1,440.00 | 1,419.00 | 1,419.00 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Donlen ABS Program | Donlen ABS Program | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Donlen GN II Variable Funding Notes(5) | 1 | % | Floating | Dec-13 | 943.8 | 899.3 | Donlen GN II Variable Funding Notes(3) | 1.15 | % | Floating | Dec-13 | 899.3 | 811.2 | |||||||||||||||||||||||||||||||||||||||||||
Other Fleet Debt | Other Fleet Debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Fleet Financing Facility | 2.95 | % | Floating | Sep-15 | 171 | 166 | U.S. Fleet Financing Facility | 3.27 | % | Floating | Sep-15 | 166 | 136 | |||||||||||||||||||||||||||||||||||||||||||
European Revolving Credit Facility | 2.67 | % | Floating | Jun-15 | 357.9 | 185.3 | European Revolving Credit Facility | 2.86 | % | Floating | Jun-15 | 185.3 | 200.6 | |||||||||||||||||||||||||||||||||||||||||||
European Fleet Notes | 8.5 | % | Fixed | Jul-15 | 520.5 | 529.4 | European Fleet Notes | 8.5 | % | Fixed | Jul-15 | 529.4 | 517.7 | |||||||||||||||||||||||||||||||||||||||||||
European Securitization(3) | 2.5 | % | Floating | Jul-14 | 363 | 242.2 | European Securitization(3) | 2.48 | % | Floating | Jul-14 | 242.2 | 256.2 | |||||||||||||||||||||||||||||||||||||||||||
Hertz-Sponsored Canadian Securitization(3) | 2.14 | % | Floating | Mar-14 | 124.2 | 100.5 | Hertz-Sponsored Canadian Securitization(3) | 2.16 | % | Floating | Jun-13 | 100.5 | 68.3 | |||||||||||||||||||||||||||||||||||||||||||
Dollar Thrifty Sponsored Canadian Securitization(3)(4) | 2.13 | % | Floating | Aug-14 | 76.4 | 55.3 | Dollar Thrifty Sponsored Canadian Securitization(3)(4) | 2.13 | % | Floating | Aug-14 | 55.3 | — | |||||||||||||||||||||||||||||||||||||||||||
Australian Securitization(3)(6) | 4.17 | % | Floating | Dec-14 | 119.7 | 148.9 | Australian Securitization(3) | 4.61 | % | Floating | Dec-14 | 148.9 | 169.3 | |||||||||||||||||||||||||||||||||||||||||||
Brazilian Fleet Financing Facility | 13.89 | % | Floating | Oct-13 | 13 | 14 | Brazilian Fleet Financing Facility | 13.07 | % | Floating | Feb-13 | 14 | 23.1 | |||||||||||||||||||||||||||||||||||||||||||
Capitalized Leases | 4.08 | % | Floating | Various | 429.6 | 337.6 | Capitalized Leases | 4.4 | % | Floating | Various | 337.6 | 363.7 | |||||||||||||||||||||||||||||||||||||||||||
Unamortized Discount (Fleet) | 8.8 | 12.1 | Unamortized Net (Discount) Premium (Fleet) | 12.1 | (10.9 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
2,184.10 | 1,791.30 | 1,791.30 | 1,724.00 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Fleet Debt | 10,263.20 | 8,903.30 | Total Fleet Debt | 8,903.30 | 6,612.30 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total Debt | $ | 17,394.20 | $ | 15,014.50 | Total Debt | $ | 15,014.50 | $ | 10,907.80 | |||||||||||||||||||||||||||||||||||||||||||||||
Note: | -1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
For further information on the definitions and terms of our debt, see Note 5 of the Notes to our audited annual consolidated financial statements included in our Form 10-K under the caption "Item 8—Financial Statements and Supplementary Data." | As applicable, reference is to the December 31, 2012 weighted average interest rate (weighted by principal balance). | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
-1 | -2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
As applicable, reference is to the June 30, 2013 weighted average interest rate (weighted by principal balance). | References to our "Senior Notes" include the series of Hertz's unsecured senior notes set forth in the table below. As of December 31, 2012 and December 31, 2011, the outstanding principal amount for each such series of the Senior Notes is also specified below. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
-2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
References to our "Senior Notes" include the series of Hertz's unsecured senior notes set forth in the table below. As of June 30, 2013 and December 31, 2012, the outstanding principal amount for each such series of the Senior Notes is as specified below. | Outstanding Principal (in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior Notes | December 31, | December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2012 | 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding Principal | 8.875% Senior Notes due January 2014 | $ | — | $ | 162.3 | |||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | 7.875% Senior Notes due January 2014 | — | 276.3 | € | (213.5 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Senior Notes | June 30, | December 31, | 7.50% Senior Notes due October 2018 | 700 | 700 | |||||||||||||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 6.75% Senior Notes due April 2019 | 1,250.00 | 1,000.00 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
4.25% Senior Notes due April 2018 | $ | 250 | $ | — | 5.875% Senior Notes due October 2020 | 700 | — | |||||||||||||||||||||||||||||||||||||||||||||||||
7.50% Senior Notes due October 2018 | 700 | 700 | 7.375% Senior Notes due January 2021 | 500 | 500 | |||||||||||||||||||||||||||||||||||||||||||||||||||
6.75% Senior Notes due April 2019 | 1,250.00 | 1,250.00 | 6.25% Senior Notes due October 2022 | 500 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
5.875% Senior Notes due October 2020 | 700 | 700 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
7.375% Senior Notes due January 2021 | 500 | 500 | $ | 3,650.00 | $ | 2,638.60 | ||||||||||||||||||||||||||||||||||||||||||||||||||
6.25% Senior Notes due October 2022 | 500 | 500 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 3,900.00 | $ | 3,650.00 | -3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Maturity reference is to the "expected final maturity date" as opposed to the subsequent "legal maturity date." The expected final maturity date is the date by which Hertz and investors in the relevant indebtedness expect the relevant indebtedness to be repaid. The legal final maturity date is the date on which the relevant indebtedness is legally due and payable. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
-3 | -4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Maturity reference is to the "expected final maturity date" as opposed to the subsequent "legal maturity date." The expected final maturity date is the date by which Hertz and investors in the relevant indebtedness expect the relevant indebtedness to be repaid. The legal final maturity date is the date on which the relevant indebtedness is legally due and payable. | RCFC U.S. ABS Program and the Dollar Thrifty-Sponsored Canadian Securitization represent fleet debt acquired in connection with the Dollar Thrifty acquisition on November 19, 2012. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
-4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RCFC U.S. ABS Program and the Dollar Thrifty-Sponsored Canadian Securitization represent fleet debt acquired in connection with the Dollar Thrifty acquisition on November 19, 2012. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of expected maturities of debt and other obligations | The aggregate amounts of maturities of debt for each of the twelve-month periods ending December 31 (in millions of dollars) are as follows: | Expected maturities of debt and other obligations outstanding at December 31, 2011 are as follows: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | $ | 7,028.30 | (including $6,741.1 of other short-term borrowings*) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
2013 | $ | 5,744.10 | (including $5,244.0 of other short-term borrowings*) | 2012 | 2013 | 2014 | 2015 | Thereafter | ||||||||||||||||||||||||||||||||||||||||||||||||
2015 | $ | 2,124.40 | (In Thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | $ | 1,122.10 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2016 | $ | 1,140.00 | Asset-backed medium-term notes | $ | 500,000 | $ | — | $ | 400,000 | $ | 500,000 | $ | — | |||||||||||||||||||||||||||||||||||||||||||
2015 | $ | 1,894.10 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2017 | $ | 366.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2016 | $ | 267.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2018 | $ | 2,819.10 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2017 | $ | 219.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
After 2018 | $ | 3,903.90 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
After 2017 | $ | 5,752.50 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
_______________________________________________________________________________ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
_______________________________________________________________________________ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
* | Our short-term borrowings as of June 30, 2013 include, among other items, the amounts outstanding under the Senior ABL Facility, HVF U.S. Fleet Variable Funding Notes, RCFC U.S. Fleet Variable Funding Notes, Donlen GN II Variable Funding Notes, U.S. Fleet Financing Facility, European Revolving Credit Facility, European Securitization, Hertz-Sponsored Canadian Securitization, Dollar Thrifty-Sponsored Canadian Securitization, Australian Securitization, Brazilian Fleet Financing Facility and Capitalized Leases. These amounts are reflected as short-term borrowings, regardless of the facility maturity date, as these facilities are revolving in nature and/or the outstanding borrowings have maturities of three months or less. As of June 30, 2013, short-term borrowings had a weighted average interest rate of 1.8%. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
* | Our short-term borrowings as of December 31, 2012 include, among other items, the amounts outstanding under the Senior ABL Facility, HVF U.S. Fleet Variable Funding Notes, RCFC U.S. Fleet Variable Funding Notes, Donlen GN II Variable Funding Notes, U.S. Fleet Financing Facility, European Revolving Credit Facility, European Securitization, Hertz-Sponsored Canadian Securitization, Dollar Thrifty-Sponsored Canadian Securitization, Australian Securitization, Brazilian Fleet Financing Facility and Capitalized Leases. These amounts are reflected as short-term borrowings, regardless of the facility maturity date, as these facilities are revolving in nature and/or the outstanding borrowings have maturities of three months or less. As of December 31, 2012, short-term borrowings had a weighted average interest rate of 1.8%. |
DERIVATIVE_FINANCIAL_INSTRUMEN6
DERIVATIVE FINANCIAL INSTRUMENTS - DOLLAR THRIFTY (Tables) | 6 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of fair value of derivatives outstanding | The fair value of derivatives outstanding at September 30, 2012 and December 31, 2011 are as follows (in thousands): | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Derivative Instruments | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2012 | December 31, 2011 | September 30, 2012 | December 31, 2011 | Fair Values of Derivative Instruments | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance Sheet | Fair | Balance Sheet | Fair | Balance Sheet | Fair | Balance Sheet | Fair | Asset Derivatives | Liability Derivatives | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Location | Value | Location | Value | Location | Value | Location | Value | December 31, 2011 | December 31, 2010 | December 31, 2011 | December 31, 2010 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments | Prepaid expenses | Prepaid expenses | Accrued | Accrued | Balance | Fair | Balance | Fair | Balance | Fair | Balance | Fair | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
and other assets | and other assets | liabilities | liabilities | Sheet | Value | Sheet | Value | Sheet | Value | Sheet | Value | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate contracts | $ | 23 | $ | 548 | $ | — | $ | — | Location | Location | Location | Location | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives designated as hedging instruments | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate contracts | Prepaid expenses and other assets | $ | — | Prepaid expenses and other assets | $ | 861 | Accrued liabilities | $ | — | Accrued liabilities | $ | 31,254 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate contracts | Prepaid expenses and other assets | $ | 548 | Prepaid expenses and other assets | $ | 494 | Accrued liabilities | $ | — | Accrued liabilities | $ | 5,634 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total derivatives | $ | 548 | $ | 1,355 | $ | — | $ | 36,888 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of (gain) loss recognized in income on derivatives not designated as hedging instruments | The (gain) loss recognized on interest rate swap and cap agreements that do not qualify for hedge accounting treatment and thus are not designated as hedging instruments for the three and nine months ended September 30, 2012 and 2011 are as follows (in thousands): | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount of (Gain) or Loss Recognized | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
in Income on Derivative | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months | Nine Months | Amount of (Gain) | Location of (Gain) or Loss | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ended | Ended | or Loss Recognized | Recognized in Income on Derivative | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives Not | September 30, | September 30, | Location of (Gain) or Loss | in Income on | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Designated as Hedging | Recognized in Income on | Derivative | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Instruments | 2012 | 2011 | 2012 | 2011 | Derivative | Years Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate contracts | $ | 40 | $ | 523 | $ | 525 | $ | (3,367 | ) | Net (increase) decrease in | Derivatives Not Designated as | 2011 | 2010 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
fair value of derivatives | Hedging Instruments | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate contracts | $ | (3,244 | ) | $ | (28,694 | ) | Net (increase) decrease in | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
fair value of derivatives | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | (3,244 | ) | $ | (28,694 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of gain (loss), net of tax and reclassifications, recognized in OCI and the amount of gain (loss) reclassified from AOCI into income | The following table summarizes the gains and (losses) of derivatives (in millions of dollars): | Assets and liabilities measured at fair value on a recurring basis as of December 31, 2012 and 2011 were as follows (in millions): | The amount of gain (loss), net of tax and reclassification, recognized on the terminated hedging instruments in other comprehensive income (loss) ("OCI") and the amount of the gain (loss) reclassified from Accumulated OCI ("AOCI") into income for the three and nine months ended September 30, 2012 and 2011 are as follows (in thousands): | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Location of Gain or (Loss) | Amount of Gain or | 31-Dec-12 | Amount of Gain | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recognized on Derivatives | (Loss) Recognized in | Fair Value Measurements Using | or (Loss) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income on Derivatives | Total | Quoted Prices in Active Markets | Significant | Significant | Recognized in | Derivatives in Cash Flow Hedging Relationships | 2011 | 2010 | 2011 | 2010 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | for Identical | Other | Unobservable | OCI on | Amount of Gain or | Amount of Gain or | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, | Instruments | Observable | Inputs | Derivative | (Loss) Recognized in | (Loss) Reclassified | Location of (Gain) or Loss | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | (Level 1) | Inputs | (Level 3) | (Effective | Amount of Gain or | OCI on Derivative | from AOCI into Income | Reclassified from AOCI in | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives not designated as hedging | (Level 2) | Portion) | (Loss) Reclassified | (Effective Portion) | (Effective Portion) | Income (Effective Portion) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
instruments under ASC 815: | Prepaid Expenses and Other Current Assets: | from AOCI into | Years Ended December 31, | Interest expense, net of interest income | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gasoline swaps | Direct operating | $ | (2.5 | ) | $ | (3.3 | ) | Interest rate caps | $ | 0.9 | $ | — | $ | 0.9 | $ | — | Income (Effective | Interest rate contracts | $ | 10,259 | $ | 5,543 | $ | (14,229 | ) | $ | (14,069 | ) | ||||||||||||||||||||||||||||||||||||||||||
Interest rate caps | Selling, general and administrative | — | (0.1 | ) | Portion) | Location of (Gain) or | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency forward contracts | 3.4 | — | 3.4 | — | Loss Reclassified from | Total | $ | 10,259 | $ | 5,543 | $ | (14,229 | ) | $ | (14,069 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign exchange forward contracts | Selling, general and administrative | (7.1 | ) | (7.7 | ) | AOCI in Income | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign exchange options | Selling, general and administrative | — | 0.1 | Foreign exchange options | 0.2 | — | 0.2 | — | Derivatives in Cash Flow Hedging Relationships | 2012 | 2011 | 2012 | 2011 | (Effective Portion) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | (9.6 | ) | $ | (11.0 | ) | Total | $ | 4.5 | $ | — | $ | 4.5 | $ | — | Interest rate contracts | $ | — | $ | 3,591 | $ | (207 | ) | $ | (3,572 | ) | Interest expense, net | |||||||||||||||||||||||||||||||||||||||||||
of interest income | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Location of Gain or (Loss) | Amount of Gain or | Other Current Liabilities: | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recognized on Derivatives | (Loss) Recognized in | Gasoline swaps | $ | 0.1 | $ | — | $ | 0.1 | $ | — | Interest rate contracts | $ | — | $ | 10,288 | $ | (4,939 | ) | $ | (10,654 | ) | Interest expense, net | ||||||||||||||||||||||||||||||||||||||||||||||||
Income on Derivatives | of interest income | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six Months Ended | Interest rate caps | 0.9 | — | 0.9 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | Foreign currency forward contracts | 4.5 | — | 4.5 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives not designated as hedging | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
instruments under ASC 815: | Total | $ | 5.5 | $ | — | $ | 5.5 | $ | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gasoline swaps | Direct operating | $ | (0.8 | ) | $ | (1.5 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate caps | Selling, general and administrative | 0.1 | (0.1 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign exchange forward contracts | Selling, general and administrative | (2.9 | ) | (5.6 | ) | 31-Dec-11 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign exchange options | Selling, general and administrative | (0.1 | ) | 0.1 | Fair Value Measurements Using | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Quoted Prices in Active Markets | Significant | Significant | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | (3.7 | ) | $ | (7.1 | ) | for Identical | Other | Unobservable | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Instruments | Observable | Inputs | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Level 1) | Inputs | (Level 3) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Level 2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Prepaid Expenses and Other Current Assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate caps | $ | 0.5 | $ | — | $ | 0.5 | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency forward contracts | 4.4 | — | 4.4 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign exchange options | 0.1 | — | 0.1 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment | 33.2 | 33.2 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 38.2 | $ | 33.2 | $ | 5 | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Current Liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gasoline swaps | $ | 0.4 | $ | — | $ | 0.4 | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate caps | 0.4 | — | 0.4 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency forward contracts | 1.9 | — | 1.9 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate swaps | 0.2 | 0.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 2.9 | $ | — | $ | 2.9 | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The following table summarizes the (gains) and losses of derivatives (in millions of dollars): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Location of Gain or (Loss) | Amount of Gain or | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recognized on Derivatives | (Loss) Recognized in | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income on Derivatives | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2012 | 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives not designated as hedging | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
instruments under ASC 815: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gasoline swaps | Direct operating | $ | 0.7 | $ | 2.6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate caps | Selling, general and administrative | (0.8 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign exchange forward contracts | Selling, general and administrative | (15.4 | ) | (11.0 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign exchange options | Selling, general and administrative | — | (0.2 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | (15.5 | ) | $ | (8.6 | ) |
FAIR_VALUE_MEASUREMENTS_DOLLAR5
FAIR VALUE MEASUREMENTS - DOLLAR THRIFTY (Tables) | 6 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value of assets and liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of assets and liabilities measured at fair value on a recurring basis | The following table summarizes the estimated fair value of derivatives (in millions of dollars): | The following table summarizes the estimated fair value of derivatives (in millions of dollars): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Derivative Instruments(1) | Fair Value of Derivative Instruments(1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset Derivatives(2) | Liability Derivatives(2) | Asset Derivatives(2) | Liability Derivatives(2) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, | December 31, | June 30, | December 31, | December 31, | December 31, | December 31, | December 31, | Fair Value Measurements at Reporting Date Using | Fair Value Measurements at Reporting Date Using | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2012 | 2011 | 2012 | 2011 | Description | Total Fair | Quoted Prices | Significant Other | Significant | Description | Total Fair | Quoted Prices in | Significant Other | Significant | |||||||||||||||||||||||||||||||||||||||||||||||
Derivatives not designated as hedging | Derivatives not designated as hedging | Value Assets | in Active | Observable | Unobservable | Value Assets | Active Markets for | Observable | Unobservable | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
instruments under ASC 815: | instruments under ASC 815: | (Liabilities) | Markets for | Inputs | Inputs | (Liabilities) | Identical Assets | Inputs | Inputs | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gasoline swaps | $ | — | $ | — | $ | 0.9 | $ | 0.1 | Gasoline swaps | $ | — | $ | — | $ | 0.1 | $ | 0.4 | at 9/30/12 | Identical | (Level 2) | (Level 3) | at 12/31/11 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||||||||||||||||||
Assets | (in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate caps | 0.6 | 0.9 | 0.6 | 0.9 | Interest rate caps | 0.9 | 0.5 | 0.9 | 0.4 | (Level 1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | Derivative Assets | $ | 548 | $ | — | $ | 548 | $ | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign exchange forward contracts | 4.8 | 3.4 | 1.9 | 4.5 | Foreign exchange forward contracts | 3.4 | 4.4 | 4.5 | 1.9 | Derivative Assets | $ | 23 | $ | — | $ | 23 | $ | — | Deferred Compensation Plan Assets(a) | 5,752 | 5,752 | — | — | |||||||||||||||||||||||||||||||||||||||||
Deferred Compensation Plan Assets(a) | 6,998 | 6,998 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign exchange options | 0.1 | 0.2 | — | — | Interest rate swaps | — | — | — | 0.2 | Total | $ | 6,300 | $ | 5,752 | $ | 548 | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 7,021 | $ | 6,998 | $ | 23 | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total derivatives not designated as hedging | Foreign exchange options | 0.2 | 0.1 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
instruments under ASC 815 | $ | 5.5 | $ | 4.5 | $ | 3.4 | $ | 5.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total derivatives not designated as hedging | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
_______________________________________________________________________________ | instruments under ASC 815 | $ | 4.5 | $ | 5 | $ | 5.5 | $ | 2.9 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
-1 | All fair value measurements were primarily based upon significant observable (Level 2) inputs. | _______________________________________________________________________________ | Fair Value Measurements at Reporting Date Using | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements at Reporting Date Using | Description | Total Fair | Quoted Prices in | Significant Other | Significant | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
-2 | All asset derivatives are recorded in "Prepaid expenses and other assets" and all liability derivatives are recorded in "Accrued liabilities" on our condensed consolidated balance sheets. | -1 | All fair value measurements were primarily based upon significant observable (Level 2) inputs. | Description | Total Fair | Quoted Prices | Significant Other | Significant | Value Assets | Active Markets for | Observable | Unobservable | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Value Assets | in Active | Observable | Unobservable | (Liabilities) | Identical Assets | Inputs | Inputs | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
-2 | All asset derivatives are recorded in "Prepaid expenses and other assets" and all liability derivatives are recorded in "Other accrued liabilities" on our consolidated balance sheets. | (Liabilities) | Markets for | Inputs | Inputs | at 12/31/10 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
at 12/31/11 | Identical | (Level 2) | (Level 3) | (in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Level 1) | Derivative Assets | $ | 1,355 | $ | — | $ | 1,355 | $ | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | Derivative Liabilities | (36,888 | ) | — | (36,888 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Assets | $ | 548 | $ | — | $ | 548 | $ | — | Marketable Securities (available for sale) | 169 | 169 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Compensation Plan Assets(a) | 5,752 | 5,752 | — | — | Deferred Compensation Plan Assets(a) | 3,916 | — | 3,916 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 6,300 | $ | 5,752 | $ | 548 | $ | — | Total | $ | (31,448 | ) | $ | 169 | $ | (31,617 | ) | $ | — | |||||||||||||||||||||||||||||||||||||||||||||
(a) | (a) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Compensation Plan Assets consist primarily of equity securities. The Company also has an offsetting liability related to the Deferred Compensation Plan, which is not disclosed in the table as it is not independently measured at fair value, but rather is set to equal fair value of the assets held in the related rabbi trust. | Deferred Compensation Plan Assets consist primarily of equity securities. The Company also has an offsetting liability related to the Deferred Compensation Plan, which is not disclosed in the table as it is not independently measured at fair value, but rather is set to equal fair value of the assets held in the related rabbi trust. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of information about the Company's market sensitive financial instruments | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements at Reporting Date Using | Debt and other obligations at December 31, 2011 | Carrying | Fair Value | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Description | Carrying | Fair Value | Quoted Prices | Significant | Significant | Value | at 12/31/11 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Value Assets | Assets | in Active Markets | Other | Unobservable | (in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Liabilities) | (Liabilities) | for Identical Assets | Observable | Inputs | Debt: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
at 9/30/12 | at 9/30/12 | (Level 1) | Inputs | (Level 3) | Vehicle debt and obligations—floating rates | $ | 500,000 | $ | 495,820 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Level 2) | Vehicle debt and obligations—fixed rates | $ | 900,000 | $ | 899,292 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Vehicle debt and obligations-floating rates(1) | $ | (510,000 | ) | $ | (510,000 | ) | $ | — | $ | — | $ | (510,000 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Vehicle debt and obligations-fixed rates | (900,000 | ) | (926,819 | ) | — | (516,296 | ) | (410,523 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Canadian dollar denominated vehicle debt and obligations-floating rates | (71,169 | ) | (71,169 | ) | — | — | (71,169 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | (1,481,169 | ) | $ | (1,507,988 | ) | $ | — | $ | (516,296 | ) | $ | (991,692 | ) | Debt and other obligations at December 31, 2010 | Carrying | Fair Value | |||||||||||||||||||||||||||||||||||||||||||||||
Value | at 12/31/10 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
-1 | Vehicle debt and obligations—floating rates(1) | $ | 1,200,000 | $ | 1,178,875 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The fair value of the Series 2010-3 VFN excludes the impact of the related interest rate cap. | Vehicle debt and obligations—Canadian dollar denominated | $ | 49,118 | $ | 49,118 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-vehicle debt—Term Loan | $ | 148,125 | $ | 146,459 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements at Reporting Date Using | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Description | Carrying | Fair Value | Quoted Prices | Significant | Significant | -1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Value Assets | Assets | in Active Markets | Other | Unobservable | Includes $500 million relating to the Series 2006-1 notes, the $500 million Series 2007-1 notes swapped from floating interest rates to fixed interest rates, and the $200 million Series 2010-1 VFN. The fair value excludes the impact of the related interest rate swaps and cap. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Liabilities) | (Liabilities) | for Identical Assets | Observable | Inputs | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
at 12/31/11 | at 12/31/11 | (Level 1) | Inputs | (Level 3) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Level 2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Vehicle debt and obligations-floating rates | $ | (500,000 | ) | $ | (495,820 | ) | $ | — | $ | (495,820 | ) | $ | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Vehicle debt and obligations-fixed rates | (900,000 | ) | (899,292 | ) | — | (499,292 | ) | (400,000 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | (1,400,000 | ) | $ | (1,395,112 | ) | $ | — | $ | (995,112 | ) | $ | (400,000 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
EMPLOYEE_BENEFIT_PLANS_INCLUDI1
EMPLOYEE BENEFIT PLANS INCLUDING SHARE-BASED PAYMENT PLANS - DOLLAR THRIFTY (Tables) | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2012 | Dec. 31, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Performance Shares | Performance Shares | Restricted Stock Units | Restricted Stock Units | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SHARE-BASED PAYMENT PLANS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of non-qualified option rights activity | A summary of option activity under the Stock Incentive Plan and the Omnibus Plan as of December 31, 2012 is presented below. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Options | Shares | Weighted‑ | Weighted‑ | Aggregate Intrinsic | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Average | Average | Value (In thousands | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exercise | Remaining | of dollars) | Number of | Weighted- | Weighted- | Aggregate | Number of | Weighted | Weighted | Aggregate | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Price | Contractual | Shares | Average | Average | Intrinsic | Shares | Average | Average | Intrinsic Value | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Term (years) | Exercise | Remaining | Value | Exercise | Remaining | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding at January 1, 2012 | 15,142,061 | $ | 10.6 | 6.3 | $ | 41,110 | Price | Contractual | Price | Contractual | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Term | Term | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Granted | 35,492 | 0.17 | (In Thousands) | (In Thousands) | (In Thousands) | (In Thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding at January 1, 2012 | 1,575 | $ | 5.11 | 6.89 | $ | 102,579 | Outstanding at January 1, 2011 | 2,277 | $ | 5.73 | 7.61 | $ | 94,545 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exercised | (1,740,447 | ) | 5.75 | Granted | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exercised | (297 | ) | 5.7 | Granted | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Forfeited or Expired | (248,431 | ) | 14.66 | Canceled (Forfeited/Expired) | — | — | Exercised | (672 | ) | 7.1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Canceled (Forfeited/Expired) | (30 | ) | 7.62 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding at December 31, 2012 | 13,188,675 | 11.13 | 5.4 | $ | 74,681 | Outstanding at September 30, 2012 | 1,278 | $ | 4.97 | 6.35 | $ | 104,695 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding at December 31, 2011 | 1,575 | $ | 5.11 | 6.89 | $ | 102,579 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exercisable at December 31, 2012 | 10,321,945 | 10.83 | 4.7 | $ | 63,086 | Fully vested and exercisable options at: September 30, 2012 | 1,278 | $ | 4.97 | 6.35 | $ | 104,695 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fully vested and exercisable options at: December 31, 2011 | 917 | $ | 5.46 | 6.66 | $ | 59,398 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Options expected to vest in the future at: December 31, 2011 | 658 | $ | 4.63 | 7.23 | $ | 43,181 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of status of the Company's awards | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nonvested Shares | Shares | Weighted-Average | Nonvested Shares | Shares | Weighted-Average | Nonvested Shares | Shares | Weighted-Average | Nonvested Shares | Shares | Weighted-Average | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Grant-Date | Grant-Date | Grant-Date | Grant-Date | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value | Fair Value | Fair Value | Fair Value | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In Thousands) | (In Thousands) | (In Thousands) | (In Thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nonvested at January 1, 2012 | 34 | $ | 5.41 | Nonvested at January 1, 2011 | 238 | $ | 39.07 | Nonvested at January 1, 2012 | 34 | $ | 5.41 | Nonvested at January 1, 2011 | 64 | $ | 4.55 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Granted | 7 | 73.42 | Granted | 140 | 69.58 | Granted | 7 | 73.42 | Granted | 9 | 48.24 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Vested | (34 | ) | 5.41 | Vested | (73 | ) | 27.95 | Vested | (34 | ) | 5.41 | Vested | (39 | ) | 14.17 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Forfeited | — | — | Forfeited | (43 | ) | 35.02 | Forfeited | — | — | Forfeited | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nonvested at September 30, 2012 | 7 | $ | 73.42 | Nonvested at December 31, 2011 | 262 | $ | 59.11 | Nonvested at September 30, 2012 | 7 | $ | 73.42 | Nonvested at December 31, 2011 | 34 | $ | 5.41 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INCOME_TAXES_DOLLAR_THRIFTY_Ta
INCOME TAXES - DOLLAR THRIFTY (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2012 | Dec. 31, 2011 | ||||||||||||||||||||||||||||||||
Dollar Thrifty Automotive Group Inc. | |||||||||||||||||||||||||||||||||
Income taxes | |||||||||||||||||||||||||||||||||
Schedule of income tax expense | The total provision (benefit) for taxes on income consists of the following (in millions of dollars): | ||||||||||||||||||||||||||||||||
Years ended December 31, | |||||||||||||||||||||||||||||||||
2012 | 2011 | 2010 | |||||||||||||||||||||||||||||||
Current: | Year Ended December 31, | ||||||||||||||||||||||||||||||||
Federal | $ | 20.1 | $ | 10.3 | $ | 10.2 | 2011 | 2010 | 2009 | ||||||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||||||||||
Foreign | 32.3 | 30.6 | 41.5 | Current: | |||||||||||||||||||||||||||||
Federal | $ | 6,019 | $ | 79 | $ | 4,867 | |||||||||||||||||||||||||||
State and local | 39.1 | 28.5 | 1.5 | State and local | 8,184 | 12,535 | 13,417 | ||||||||||||||||||||||||||
Foreign | 837 | 631 | 848 | ||||||||||||||||||||||||||||||
Total current | 91.5 | 69.4 | 53.2 | ||||||||||||||||||||||||||||||
15,040 | 13,245 | 19,132 | |||||||||||||||||||||||||||||||
Deferred: | Deferred: | ||||||||||||||||||||||||||||||||
Federal | 141.9 | 82.4 | (18.6 | ) | Federal | 78,316 | 70,968 | 19,365 | |||||||||||||||||||||||||
State and local | 8,336 | 5,989 | (2,511 | ) | |||||||||||||||||||||||||||||
Foreign | 11.9 | (3.2 | ) | 1.3 | |||||||||||||||||||||||||||||
86,652 | 76,957 | 16,854 | |||||||||||||||||||||||||||||||
State and local | (18.2 | ) | (4.8 | ) | (2.6 | ) | |||||||||||||||||||||||||||
Total deferred | 135.6 | 74.4 | (19.9 | ) | $ | 101,692 | $ | 90,202 | $ | 35,986 | |||||||||||||||||||||||
Total provision (benefit) | $ | 227.1 | $ | 143.8 | $ | 33.3 | |||||||||||||||||||||||||||
Schedule of Deferred Tax Assets and Liabilities | The principal items of the U.S. and foreign net deferred tax assets and liabilities at December 31, 2012 and 2011 are as follows (in millions of dollars): | ||||||||||||||||||||||||||||||||
2012 | 2011 | ||||||||||||||||||||||||||||||||
Deferred Tax Assets: | |||||||||||||||||||||||||||||||||
Employee benefit plans | $ | 103.6 | $ | 102.8 | December 31, | ||||||||||||||||||||||||||||
2011 | 2010 | ||||||||||||||||||||||||||||||||
Net operating loss carryforwards | 1,610.90 | 1,743.50 | (In Thousands) | ||||||||||||||||||||||||||||||
Deferred tax assets: | |||||||||||||||||||||||||||||||||
Foreign tax credit carryforwards | 20.8 | 20.8 | Intangible asset amortization | $ | 32,744 | $ | 37,176 | ||||||||||||||||||||||||||
Vehicle insurance reserves | 30,183 | 38,456 | |||||||||||||||||||||||||||||||
Federal, state and foreign local tax credit carryforwards | 26.8 | 15 | Other accrued liabilities | 27,450 | 33,621 | ||||||||||||||||||||||||||||
Interest rate swap | — | 15,267 | |||||||||||||||||||||||||||||||
Accrued and prepaid expenses | 341.7 | 327.4 | AMT credit carryforward | — | 7,252 | ||||||||||||||||||||||||||||
Canadian NOL carryforwards | 16,561 | 17,650 | |||||||||||||||||||||||||||||||
Total Deferred Tax Assets | 2,103.80 | 2,209.50 | Other Canadian temporary differences | 6,278 | 6,462 | ||||||||||||||||||||||||||||
Federal and state NOL carryforwards | 50,993 | 5,723 | |||||||||||||||||||||||||||||||
Less: Valuation Allowance | (226.4 | ) | (186.7 | ) | Allowance for doubtful accounts and notes receivable | 1,036 | 1,729 | ||||||||||||||||||||||||||
Total Net Deferred Tax Assets | 1,877.40 | 2,022.80 | Canadian depreciation | 1,834 | 1,862 | ||||||||||||||||||||||||||||
Deferred Tax Liabilities: | 167,079 | 165,198 | |||||||||||||||||||||||||||||||
Depreciation on tangible assets | (3,081.4 | ) | (2,742.3 | ) | Valuation allowance | (24,705 | ) | (26,042 | ) | ||||||||||||||||||||||||
Intangible assets | (1,477.1 | ) | (942.4 | ) | |||||||||||||||||||||||||||||
Total Deferred Tax Liabilities | (4,558.5 | ) | (3,684.7 | ) | Total | $ | 142,374 | $ | 139,156 | ||||||||||||||||||||||||
Net Deferred Tax Liability | $ | (2,681.1 | ) | $ | (1,661.9 | ) | |||||||||||||||||||||||||||
Deferred tax liabilities: | |||||||||||||||||||||||||||||||||
Depreciation | $ | 484,942 | $ | 381,078 | |||||||||||||||||||||||||||||
Other | 394 | 1,008 | |||||||||||||||||||||||||||||||
Total | $ | 485,336 | $ | 382,086 | |||||||||||||||||||||||||||||
Summary of reconciliation of taxes at the maximum U.S. statutory federal income tax rate with recorded taxes | The significant items in the reconciliation of the statutory and effective income tax rates consisted of the following: | ||||||||||||||||||||||||||||||||
Years ended December 31, | |||||||||||||||||||||||||||||||||
2012 | 2011 | 2010 | |||||||||||||||||||||||||||||||
Statutory Federal Tax Rate | 35 | % | 35 | % | 35 | % | Year Ended December 31, | ||||||||||||||||||||||||||
Foreign tax differential | (3.2 | ) | (3.3 | ) | (32.1 | ) | 2011 | 2010 | 2009 | ||||||||||||||||||||||||
State and local income taxes, net of federal income tax benefit | 2.9 | 3.2 | (5.2 | ) | Amount | Percent | Amount | Percent | Amount | Percent | |||||||||||||||||||||||
(Amounts in Thousands) | |||||||||||||||||||||||||||||||||
Change in state statutory rates, net of federal income tax benefit | (1.0 | ) | 0.5 | 5.1 | Tax expense computed at the maximum U.S. statutory rate | $ | 91,435 | 35 | % | $ | 77,496 | 35 | % | $ | 28,353 | 35 | % | ||||||||||||||||
Difference resulting from: | |||||||||||||||||||||||||||||||||
Federal and foreign permanent differences | 2.3 | (1.1 | ) | (24.0 | ) | State and local taxes, net of federal income tax benefit | 11,132 | 4.2 | % | 12,056 | 5.4 | % | 7,007 | 8.6 | % | ||||||||||||||||||
Foreign (income) losses | (623 | ) | (0.2 | )% | 1,522 | 0.7 | % | 1,111 | 1.4 | % | |||||||||||||||||||||||
Withholding taxes | 1.7 | 2 | 26.2 | Foreign taxes | 586 | 0.2 | % | 416 | 0.2 | % | 633 | 0.8 | % | ||||||||||||||||||||
Other | (838 | ) | (0.3 | )% | (1,288 | ) | (0.6 | )% | (1,118 | ) | (1.4 | )% | |||||||||||||||||||||
Uncertain tax positions | (0.6 | ) | (0.8 | ) | 11.2 | ||||||||||||||||||||||||||||
Total | $ | 101,692 | 38.9 | % | $ | 90,202 | 40.7 | % | $ | 35,986 | 44.4 | % | |||||||||||||||||||||
Change in valuation allowance | 7.9 | 0.6 | 85.1 | ||||||||||||||||||||||||||||||
All other items, net | 0.2 | 2.4 | 1.8 | ||||||||||||||||||||||||||||||
Effective Tax Rate | 45.2 | % | 38.5 | % | 103.1 | % |
STOCKHOLDERS_EQUITY_DOLLAR_THR4
STOCKHOLDERS' EQUITY - DOLLAR THRIFTY (Tables) | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||
Jun. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2011 | ||||||||||||||||||||||||||||||||||||||||||||
Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | |||||||||||||||||||||||||||||||||||||||||||||
STOCKHOLDERS' EQUITY | ||||||||||||||||||||||||||||||||||||||||||||||
Schedule of components of accumulated other comprehensive income (loss) | Changes in the accumulated other comprehensive loss balance by component (net of tax) were as follows (in millions of dollars): | |||||||||||||||||||||||||||||||||||||||||||||
Pension and Other Post-Employment Benefits | Foreign Currency Items | Unrealized Losses on Terminated Net Investment Hedges | Unrealized Gains on Available for Sale Securities | Other | Accumulated Other Comprehensive Loss | |||||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2013 | $ | (109.8 | ) | $ | 102.7 | $ | (19.4 | ) | $ | — | $ | (0.4 | ) | $ | (26.9 | ) | ||||||||||||||||||||||||||||||
Interest Rate | Foreign | Accumulated | Interest Rate | Foreign | Accumulated | |||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) before reclassification | 0.3 | (55.5 | ) | — | 2.1 | 0.1 | (53.0 | ) | Swap | Currency | Other | SWAP | Currency | Other | ||||||||||||||||||||||||||||||||
Translation | Comprehensive | Translation | Comprehensive | |||||||||||||||||||||||||||||||||||||||||||
Income (Loss) | Income (Loss) | |||||||||||||||||||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income | 5.1 | 1.5 | — | — | — | 6.6 | (In Thousands) | (In Thousands) | ||||||||||||||||||||||||||||||||||||||
Balance, January 1, 2012 | $ | (8,488 | ) | $ | 871 | $ | (7,617 | ) | Balance, January 1, 2009 | $ | (32,952 | ) | $ | 3,564 | $ | (29,388 | ) | |||||||||||||||||||||||||||||
Interest rate swap, net of tax | 8,488 | — | 8,488 | Interest rate swap and cap adjustment, net of tax | 8,662 | — | 8,662 | |||||||||||||||||||||||||||||||||||||||
Net current period other comprehensive income (loss) | 5.4 | (54.0 | ) | — | 2.1 | 0.1 | (46.4 | ) | Foreign currency translation adjustment | — | 5,491 | 5,491 | Foreign currency translation adjustment | — | 2,352 | 2,352 | ||||||||||||||||||||||||||||||
Balance at June 30, 2013 | $ | (104.4 | ) | $ | 48.7 | $ | (19.4 | ) | $ | 2.1 | $ | (0.3 | ) | $ | (73.3 | ) | Balance, September 30, 2012 | $ | — | $ | 6,362 | $ | 6,362 | Balance, December 31, 2009 | (24,290 | ) | 5,916 | (18,374 | ) | |||||||||||||||||
Interest rate swap and cap adjustment, net of tax | 5,543 | — | 5,543 | |||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | 502 | 502 | |||||||||||||||||||||||||||||||||||||||||||
Pension and Other Post-Employment Benefits | Foreign Currency Items | Unrealized Losses on Terminated Net Investment Hedges | Unrealized Gains on Available for Sale Securities | Other | Accumulated Other Comprehensive Loss | Balance, December 31, 2010 | (18,747 | ) | 6,418 | (12,329 | ) | |||||||||||||||||||||||||||||||||||
Balance at January 1, 2012 | $ | (99.6 | ) | $ | 91.3 | $ | (19.4 | ) | $ | 0.3 | $ | (1.0 | ) | $ | (28.4 | ) | Interest rate swap and cap adjustment, net of tax | 10,259 | — | 10,259 | ||||||||||||||||||||||||||
Foreign currency translation adjustment | — | (5,547 | ) | (5,547 | ) | |||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) before reclassification | — | (16.5 | ) | — | 3.1 | 0.1 | (13.3 | ) | ||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2011 | $ | (8,488 | ) | $ | 871 | $ | (7,617 | ) | ||||||||||||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income | 3.7 | — | — | — | — | 3.7 | ||||||||||||||||||||||||||||||||||||||||
Net current period Other comprehensive income (loss) | 3.7 | (16.5 | ) | — | 3.1 | 0.1 | (9.6 | ) | ||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2012 | $ | (95.9 | ) | $ | 74.8 | $ | (19.4 | ) | $ | 3.4 | $ | (0.9 | ) | $ | (38.0 | ) | ||||||||||||||||||||||||||||||
COMMITMENTS_AND_CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES - DOLLAR THRIFTY (Tables) | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2012 | Dec. 31, 2011 | ||||||||||||||||||||||
Dollar Thrifty Automotive Group Inc. | |||||||||||||||||||||||
Commitments and contingencies | |||||||||||||||||||||||
Schedule of expenses incurred under operating leases and concessions | In addition to the above, we have various leases on revenue earning equipment and office and computer equipment under which the following amounts were expensed (in millions of dollars): | ||||||||||||||||||||||
Years ended December 31, | |||||||||||||||||||||||
2012 | 2011 | 2010 | |||||||||||||||||||||
Revenue earning equipment | $ | 79.8 | $ | 96.1 | $ | 78.2 | Year Ended December 31, | ||||||||||||||||
2011 | 2010 | 2009 | |||||||||||||||||||||
Office and computer equipment | 12.2 | 10.1 | 10.4 | (In Thousands) | |||||||||||||||||||
Rent | $ | 48,682 | $ | 47,915 | $ | 49,543 | |||||||||||||||||
Total | $ | 92 | $ | 106.2 | $ | 88.6 | Concession expenses: | ||||||||||||||||
Minimum fees | 107,095 | 102,080 | 101,938 | ||||||||||||||||||||
We have various concession agreements, which provide for payment of rents and a percentage of revenue with a guaranteed minimum, and real estate leases under which the following amounts were expensed (in millions of dollars): | Contingent fees | 27,144 | 31,711 | 32,263 | |||||||||||||||||||
182,921 | 181,706 | 183,744 | |||||||||||||||||||||
Years ended December 31, | Less sublease rental income | (498 | ) | (574 | ) | (785 | ) | ||||||||||||||||
2012 | 2011 | 2010 | |||||||||||||||||||||
Rents | $ | 135.9 | $ | 130.6 | $ | 133.9 | Total | $ | 182,423 | $ | 181,132 | $ | 182,959 | ||||||||||
Concession fees: | |||||||||||||||||||||||
Minimum fixed obligations | 249.6 | 248.7 | 252 | ||||||||||||||||||||
Additional amounts, based on revenues | 329.4 | 311.8 | 278.7 | ||||||||||||||||||||
Total | $ | 714.9 | $ | 691.1 | $ | 664.6 | |||||||||||||||||
Schedule of future minimum rentals and fees under noncancelable operating leases and the Company's obligations for minimum airport concession fees | As of December 31, 2012, minimum obligations under existing agreements referred to above are approximately as follows (in millions of dollars): | Future minimum rentals and fees under noncancelable operating leases and the Company's obligations for minimum airport concession fees at December 31, 2011 are presented in the following table: | |||||||||||||||||||||
Rents | Concessions | Company-Owned | Operating | Total | |||||||||||||||||||
2013 | $ | 157.3 | $ | 390.3 | Stores | Leases | |||||||||||||||||
Concession Fees | |||||||||||||||||||||||
2014 | 128.7 | 279.4 | (In Thousands) | ||||||||||||||||||||
2012 | $ | 98,351 | $ | 40,429 | $ | 138,780 | |||||||||||||||||
2015 | 99.3 | 192.8 | 2013 | 85,594 | 32,866 | 118,460 | |||||||||||||||||
2014 | 62,120 | 25,323 | 87,443 | ||||||||||||||||||||
2016 | 74.7 | 141.4 | 2015 | 43,908 | 20,221 | 64,129 | |||||||||||||||||
2016 | 37,088 | 17,290 | 54,378 | ||||||||||||||||||||
2017 | 50.4 | 91.3 | Thereafter | 130,771 | 48,333 | 179,104 | |||||||||||||||||
Years after 2017 | 194.1 | 509.7 | 457,832 | 184,462 | 642,294 | ||||||||||||||||||
Less sublease rental income | — | (895 | ) | (895 | ) | ||||||||||||||||||
As of December 31, 2012, minimum obligations under existing agreements referred to above that have a maturity of more than one year are as follows (in millions of dollars): | |||||||||||||||||||||||
$ | 457,832 | $ | 183,567 | $ | 641,399 | ||||||||||||||||||
2013 | $ | 56.6 | |||||||||||||||||||||
2014 | $ | 25.2 | |||||||||||||||||||||
2015 | $ | 6.7 | |||||||||||||||||||||
2016 | $ | 2.1 | |||||||||||||||||||||
2017 | $ | — | |||||||||||||||||||||
After 2017 | $ | — | |||||||||||||||||||||
Schedule of estimated future payments of Vehicle Insurance Reserves | Estimated future payments of Vehicle Insurance Reserves as of December 31, 2011 are as follows (in thousands): | ||||||||||||||||||||||
2012 | $ | 21,220 | |||||||||||||||||||||
2013 | 15,314 | ||||||||||||||||||||||
2014 | 7,037 | ||||||||||||||||||||||
2015 | 4,617 | ||||||||||||||||||||||
2016 | 2,995 | ||||||||||||||||||||||
Thereafter | 3,508 | ||||||||||||||||||||||
Aggregate undiscounted public liability and property damage | 54,691 | ||||||||||||||||||||||
Effect of discounting | (375 | ) | |||||||||||||||||||||
Public liability and property damage, net of discount | 54,316 | ||||||||||||||||||||||
Supplemental liability insurance | 32,199 | ||||||||||||||||||||||
Total vehicle insurance reserves | $ | 86,515 | |||||||||||||||||||||
BUSINESS_SEGMENTS_DOLLAR_THRIF1
BUSINESS SEGMENTS - DOLLAR THRIFTY (Tables) (Dollar Thrifty Automotive Group Inc.) | 12 Months Ended | ||||||||||
Dec. 31, 2011 | |||||||||||
Dollar Thrifty Automotive Group Inc. | |||||||||||
BUSINESS SEGMENTS | |||||||||||
Schedule of geographic locations | |||||||||||
Year Ended December 31, | |||||||||||
2011 | 2010 | 2009 | |||||||||
(In Thousands) | |||||||||||
Revenues: | |||||||||||
United States | $ | 1,466,186 | $ | 1,455,958 | $ | 1,466,508 | |||||
Foreign countries | 82,742 | 81,202 | 79,741 | ||||||||
$ | 1,548,928 | $ | 1,537,160 | $ | 1,546,249 | ||||||
Long-lived assets: | |||||||||||
United States | $ | 82,588 | $ | 88,433 | $ | 94,606 | |||||
Foreign countries | 1,690 | 1,795 | 1,592 | ||||||||
$ | 84,278 | $ | 90,228 | $ | 96,198 | ||||||
SELECTED_QUARTERLY_FINANCIAL_D1
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) - DOLLAR THRIFTY (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2012 | Dec. 31, 2011 | ||||||||||||||||||||||||||||||||
Dollar Thrifty Automotive Group Inc. | |||||||||||||||||||||||||||||||||
Summary of the quarterly operating results | Provided below is a summary of the quarterly operating results during 2012 and 2011 (in millions of dollars). | ||||||||||||||||||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||||||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||||||||||||||||||
2012 | 2012 | 2012 | 2012 | Year Ended December 31, 2011 | First | Second | Third | Fourth | 2011 | ||||||||||||||||||||||||
Revenues | $ | 1,960.90 | $ | 2,225.10 | $ | 2,516.20 | $ | 2,318.60 | Quarter | Quarter | Quarter | Quarter | Total | ||||||||||||||||||||
(In Thousands Except Per Share Amounts) | |||||||||||||||||||||||||||||||||
Income (loss) before income taxes | (24.0 | ) | 171.7 | 382.1 | (26.9 | ) | Revenues | $ | 348,347 | $ | 395,129 | $ | 451,722 | $ | 353,730 | $ | 1,548,928 | ||||||||||||||||
Operating income(a) | $ | 46,921 | $ | 88,818 | $ | 126,036 | $ | 73,685 | $ | 335,460 | |||||||||||||||||||||||
Net income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder | (48.2 | ) | 101 | 251.3 | (28.3 | ) | Net income | $ | 16,523 | $ | 42,505 | $ | 66,621 | $ | 33,901 | $ | 159,550 | ||||||||||||||||
Earnings per share:(b) | |||||||||||||||||||||||||||||||||
Basic | $ | 0.57 | $ | 1.47 | $ | 2.3 | $ | 1.16 | $ | 5.51 | |||||||||||||||||||||||
Diluted | $ | 0.53 | $ | 1.36 | $ | 2.13 | $ | 1.08 | $ | 5.11 | |||||||||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||||||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||||||||||||||||||
2011 | 2011 | 2011 | 2011 | ||||||||||||||||||||||||||||||
Revenues | $ | 1,780.00 | $ | 2,072.30 | $ | 2,432.30 | $ | 2,013.80 | |||||||||||||||||||||||||
Year Ended December 31, 2010 | First | Second | Third | Fourth | 2010 | ||||||||||||||||||||||||||||
Income (loss) before income taxes | (146.7 | ) | 107 | 308.2 | 105.4 | Quarter | Quarter | Quarter | Quarter | Total | |||||||||||||||||||||||
(In Thousands Except Per Share Amounts) | |||||||||||||||||||||||||||||||||
Net income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder | (123.0 | ) | 62.1 | 212.6 | 58.8 | Revenues | $ | 348,330 | $ | 396,227 | $ | 443,544 | $ | 349,059 | $ | 1,537,160 | |||||||||||||||||
Operating income(a) | $ | 61,088 | $ | 84,436 | $ | 94,246 | $ | 43,314 | $ | 283,084 | |||||||||||||||||||||||
Net income | $ | 27,292 | $ | 42,263 | $ | 49,165 | $ | 12,496 | $ | 131,216 | |||||||||||||||||||||||
Earnings per share:(b) | |||||||||||||||||||||||||||||||||
Basic | $ | 0.96 | $ | 1.48 | $ | 1.72 | $ | 0.44 | $ | 4.58 | |||||||||||||||||||||||
Diluted | $ | 0.91 | $ | 1.4 | $ | 1.62 | $ | 0.41 | $ | 4.34 | |||||||||||||||||||||||
(a) | |||||||||||||||||||||||||||||||||
Operating income represents pretax income before interest, long-lived asset impairment and (increase) decrease in fair value of derivatives. | |||||||||||||||||||||||||||||||||
(b) | |||||||||||||||||||||||||||||||||
The earnings per share is calculated from the weighted average common and common stock equivalents outstanding during each quarter, which may fluctuate based on quarterly income levels and market prices. Therefore, the sum of earnings per share information for each quarter may not equal the total year amounts. | |||||||||||||||||||||||||||||||||
Recovered_Sheet9
GUARANTOR AND NON-GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - DOLLAR THRIFTY (Tables) | 6 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GUARANTOR AND NON-GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of condensed consolidating balance sheet | CONDENSED CONSOLIDATING BALANCE SHEET | CONDENSED CONSOLIDATING BALANCE SHEET | DOLLAR THRIFTY AUTOMOTIVE GROUP, INC. AND SUBSIDIARIES | CONDENSED CONSOLIDATING BALANCE SHEET | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
30-Jun-13 | 31-Dec-12 | CONDENSED CONSOLIDATING BALANCE SHEET | 31-Dec-11 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In Millions of Dollars) | (In Thousands of Dollars) | 30-Sep-12 | (In Thousands of Dollars) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In Thousands of Dollars) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Guarantor | Non- | Eliminations | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | Parent | Guarantor | Non- | Eliminations | The Hertz | Guarantor | Non- | Eliminations | Total | Subsidiaries | Guarantor | Consolidated | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | (The Hertz | Subsidiaries | Guarantor | Corporation & | Subsidiaries | Guarantor | Consolidated | Subsidiaries | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | Corporation) | Subsidiaries | Subsidiaries | Subsidiaries | ASSETS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ASSETS | ASSETS | ASSETS | Cash and cash equivalents | $ | 446,239 | $ | 62,409 | $ | — | $ | 508,648 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 87.5 | $ | 24.5 | $ | 371 | $ | — | $ | 483 | Cash and cash equivalents | $ | 24,602 | $ | 2,578 | $ | 506,055 | $ | — | $ | 533,235 | Cash and cash equivalents | $ | 402,243 | $ | 54,626 | $ | — | $ | 456,869 | Restricted cash and investments | 1,355 | 351,910 | — | 353,265 | |||||||||||||||||||||||||||||||||
Restricted cash and investments | 6,185 | 243,959 | — | 250,144 | Receivables, net | 86,184 | 34,294 | (25,118 | ) | 95,360 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted cash and cash equivalents | 33.7 | 17 | 342.5 | — | 393.2 | Restricted cash and cash equivalents | 32,681 | 14,535 | 524,418 | — | 571,634 | Receivables, net | 86,835 | 69,618 | (28,236 | ) | 128,217 | Intercompany | (100,436 | ) | 154,999 | (54,563 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||
Intercompany | (92,323 | ) | 147,270 | (54,947 | ) | — | Prepaid expenses and other assets | 49,163 | 20,503 | (3,707 | ) | 65,959 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables, less allowance for doubtful accounts | 500.8 | 482.1 | 719.3 | (46.2 | ) | 1,656.00 | Receivables, less allowance for doubtful accounts | 544,454 | 292,467 | 1,049,675 | — | 1,886,596 | Prepaid expenses and other assets | 59,770 | 13,409 | (1,199 | ) | 71,980 | Revenue-earning vehicles, net | 33,057 | 1,434,778 | — | 1,467,835 | |||||||||||||||||||||||||||||||||||||||||||||
Revenue-earning vehicles, net | 24,629 | 1,850,978 | — | 1,875,607 | Property and equipment, net | 82,588 | 1,690 | — | 84,278 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Due from Hertz affiliate | 1,042.70 | 1,842.70 | 3,691.70 | (6,576.3 | ) | 0.8 | Due from Hertz affiliate | 1,047,986 | 59,181 | 2,199,247 | (3,293,605 | ) | 12,809 | Property and equipment, net | 76,208 | 1,679 | — | 77,887 | Investment in subsidiaries | 581,003 | — | (581,003 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||
Investment in subsidiaries | 825,502 | — | (825,502 | ) | — | Income taxes receivable | 18,702 | 84 | — | 18,786 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories, at lower cost or market | 30.8 | 39.8 | 57.7 | — | 128.3 | Inventories, at lower cost or market | 24,422 | 34,101 | 47,205 | — | 105,728 | Income taxes receivable | 4,364 | 89 | — | 4,453 | Software, net | 21,535 | — | — | 21,535 | |||||||||||||||||||||||||||||||||||||||||||||||
Software, net | 19,438 | — | — | 19,438 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Prepaid expenses and other assets | 2,894.70 | 244.3 | 407.2 | (2,783.0 | ) | 763.2 | Prepaid expenses and other assets | 2,570,539 | 183,573 | 203,678 | (2,496,288 | ) | 461,502 | Total assets | $ | 1,219,390 | $ | 2,060,667 | $ | (664,391 | ) | $ | 2,615,666 | |||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 1,412,851 | $ | 2,381,628 | $ | (909,884 | ) | $ | 2,884,595 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue earning equipment, net | 175.3 | 1,893.00 | 13,637.70 | — | 15,706.00 | Revenue earning equipment, net | 104,207 | 1,734,325 | 11,069,804 | — | 12,908,336 | LIABILITIES AND EQUITY | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LIABILITIES AND EQUITY | LIABILITIES: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and equipment, net | 897.6 | 315.1 | 252.9 | — | 1,465.60 | Property and equipment, net | 865,694 | 206,332 | 364,360 | — | 1,436,386 | LIABILITIES: | Accounts payable | $ | 45,827 | $ | 8,573 | $ | (23 | ) | $ | 54,377 | ||||||||||||||||||||||||||||||||||||||||||||||
Accounts payable | $ | 44,288 | $ | 3,484 | $ | (3 | ) | $ | 47,769 | Accrued liabilities | 148,820 | 4,167 | (28,802 | ) | 124,185 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment in subsidiaries, net | 6,833.10 | 1,367.90 | — | (8,201.0 | ) | — | Investment in subsidiaries, net | 6,964,916 | 506,123 | — | (7,471,039 | ) | — | Accrued liabilities | 161,841 | 4,157 | (29,432 | ) | 136,566 | Income tax payable / (receivable) | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Income tax payable / (receivable) | — | — | — | — | Deferred income taxes | 341,408 | 1,554 | — | 342,962 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other intangible assets, net | 70.2 | 3,848.10 | 50.2 | — | 3,968.50 | Other intangible assets, net | 74,606 | 2,352,342 | 1,605,163 | — | 4,032,111 | Deferred income taxes | 391,431 | 1,093 | — | 392,524 | Vehicle insurance reserves | 75,663 | 10,852 | — | 86,515 | |||||||||||||||||||||||||||||||||||||||||||||||
Vehicle insurance reserves | 71,050 | 11,308 | — | 82,358 | Debt and other obligations | — | 1,454,518 | (54,563 | ) | 1,399,955 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill | 106.2 | 1,035.60 | 224.5 | — | 1,366.30 | Goodwill | 106,210 | 133,923 | 1,101,739 | — | 1,341,872 | Debt and other obligations | — | 1,536,084 | (54,947 | ) | 1,481,137 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities | 611,718 | 1,479,664 | (83,388 | ) | 2,007,994 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 12,672.60 | $ | 11,110.10 | $ | 19,754.70 | $ | (17,606.5 | ) | $ | 25,930.90 | Total assets | $ | 12,360,317 | $ | 5,519,480 | $ | 18,671,344 | $ | (13,260,932 | ) | $ | 23,290,209 | Total liabilities | 668,610 | 1,556,126 | (84,382 | ) | 2,140,354 | |||||||||||||||||||||||||||||||||||||||
COMMITMENTS AND CONTINGENCIES | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LIABILITIES AND EQUITY | LIABILITIES AND EQUITY | COMMITMENTS AND CONTINGENCIES | EQUITY: | 607,672 | 581,003 | (581,003 | ) | 607,672 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EQUITY | 744,241 | 825,502 | (825,502 | ) | 744,241 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Due to Hertz affiliate | $ | 2,097.10 | $ | 2,498.80 | $ | 1,980.40 | $ | (6,576.3 | ) | $ | — | Due to Hertz affiliate | $ | 2,254,223 | $ | 628,275 | $ | 411,107 | $ | (3,293,605 | ) | $ | — | Total liabilities and equity | $ | 1,219,390 | $ | 2,060,667 | $ | (664,391 | ) | $ | 2,615,666 | |||||||||||||||||||||||||||||||||||
Total liabilities and equity | $ | 1,412,851 | $ | 2,381,628 | $ | (909,884 | ) | $ | 2,884,595 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts payable | 165.2 | 267.9 | 1,051.40 | — | 1,484.50 | Accounts payable | 239,247 | 157,742 | 602,072 | — | 999,061 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued liabilities | 642.7 | 242.2 | 343.6 | (46.2 | ) | 1,182.30 | Accrued liabilities | 605,680 | 84,992 | 487,788 | — | 1,178,460 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DOLLAR THRIFTY AUTOMOTIVE GROUP, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued taxes | 60.3 | 33.9 | 1,335.00 | (1,245.6 | ) | 183.6 | Accrued taxes | 54,357 | 11,511 | 1,003,127 | (901,681 | ) | 167,314 | CONDENSED CONSOLIDATING BALANCE SHEET | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
31-Dec-11 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | 7,042.30 | 68.5 | 10,283.40 | — | 17,394.20 | Debt | 6,190,040 | 49,445 | 8,774,989 | — | 15,014,474 | (In Thousands of Dollars) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Public liability and property damage | 93 | 58.5 | 176 | — | 327.5 | Public liability and property damage | 99,261 | 10,390 | 222,581 | — | 332,232 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Guarantor | Non- | Eliminations | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred taxes on income | — | 2,232.70 | 2,091.50 | (1,537.4 | ) | 2,786.80 | Deferred taxes on income | — | 1,776,199 | 2,499,548 | (1,594,607 | ) | 2,681,140 | Subsidiaries | Guarantor | Consolidated | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Subsidiaries | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities | 10,100.60 | 5,402.50 | 17,261.30 | (9,405.5 | ) | 23,358.90 | Total liabilities | 9,442,808 | 2,718,554 | 14,001,212 | (5,789,893 | ) | 20,372,681 | ASSETS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 446,239 | $ | 62,409 | $ | — | $ | 508,648 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity: | Equity: | Restricted cash and investments | 1,355 | 351,910 | — | 353,265 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables, net | 86,184 | 34,294 | (25,118 | ) | 95,360 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The Hertz Corporation and Subsidiaries stockholder's equity | 2,572.00 | 5,707.60 | 2,493.40 | (8,201.0 | ) | 2,572.00 | The Hertz Corporation and Subsidiaries stockholder's equity | 2,917,509 | 2,800,926 | 4,670,113 | (7,471,039 | ) | 2,917,509 | Intercompany | (100,436 | ) | 154,999 | (54,563 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Prepaid expenses and other assets | 49,163 | 20,503 | (3,707 | ) | 65,959 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interest | — | — | — | — | — | Noncontrolling interest | — | — | 19 | — | 19 | Revenue-earning vehicles, net | 33,057 | 1,434,778 | — | 1,467,835 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and equipment, net | 82,588 | 1,690 | — | 84,278 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total equity | 2,572.00 | 5,707.60 | 2,493.40 | (8,201.0 | ) | 2,572.00 | Total equity | 2,917,509 | 2,800,926 | 4,670,132 | (7,471,039 | ) | 2,917,528 | Investment in subsidiaries | 581,003 | — | (581,003 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Income taxes receivable | 18,702 | 84 | — | 18,786 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities and equity | $ | 12,672.60 | $ | 11,110.10 | $ | 19,754.70 | $ | (17,606.5 | ) | $ | 25,930.90 | Total liabilities and equity | $ | 12,360,317 | $ | 5,519,480 | $ | 18,671,344 | $ | (13,260,932 | ) | $ | 23,290,209 | Software, net | 21,535 | — | — | 21,535 | ||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 1,219,390 | $ | 2,060,667 | $ | (664,391 | ) | $ | 2,615,666 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | CONDENSED CONSOLIDATING BALANCE SHEET | LIABILITIES AND EQUITY | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
31-Dec-12 | 31-Dec-11 | LIABILITIES: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In Millions of Dollars) | (In Thousands of Dollars) | Accounts payable | $ | 45,827 | $ | 8,573 | $ | (23 | ) | $ | 54,377 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued liabilities | 148,820 | 4,167 | (28,802 | ) | 124,185 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax payable / (receivable) | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | Parent | Guarantor | Non- | Eliminations | The Hertz | Deferred income taxes | 341,408 | 1,554 | — | 342,962 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | (The Hertz | Subsidiaries | Guarantor | Corporation & | Vehicle insurance reserves | 75,663 | 10,852 | — | 86,515 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | Corporation) | Subsidiaries | Subsidiaries | Debt and other obligations | — | 1,454,518 | (54,563 | ) | 1,399,955 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ASSETS | ASSETS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 24.6 | $ | 6.5 | $ | 502.1 | $ | — | $ | 533.2 | Cash and cash equivalents | $ | 565,002 | $ | 7,385 | $ | 358,821 | $ | — | $ | 931,208 | Total liabilities | 611,718 | 1,479,664 | (83,388 | ) | 2,007,994 | |||||||||||||||||||||||||||||||||||||||||
Restricted cash and cash equivalents | 32.7 | 17.1 | 521.8 | — | 571.6 | Restricted cash and cash equivalents | 44,663 | 28,130 | 235,246 | — | 308,039 | COMMITMENTS AND CONTINGENCIES | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EQUITY: | 607,672 | 581,003 | (581,003 | ) | 607,672 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables, less allowance for doubtful accounts | 544.5 | 444 | 924.7 | (26.6 | ) | 1,886.60 | Receivables, less allowance for doubtful accounts | 297,292 | 218,754 | 1,100,336 | — | 1,616,382 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities and equity | $ | 1,219,390 | $ | 2,060,667 | $ | (664,391 | ) | $ | 2,615,666 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Due from Hertz affiliate | 1,048.00 | 2,023.50 | 3,491.70 | (6,550.4 | ) | 12.8 | Due from Hertz affiliate | 655,411 | 65,972 | 1,194,041 | (1,915,424 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories, at lower cost or market | 24.4 | 41.2 | 40.1 | — | 105.7 | Inventories, at lower cost or market | 22,440 | 26,541 | 34,997 | — | 83,978 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Prepaid expenses and other assets | 2,570.50 | 277.8 | 173.3 | (2,560.1 | ) | 461.5 | Prepaid expenses and other assets | 2,088,579 | 32,974 | 137,189 | (1,842,608 | ) | 416,134 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue earning equipment, net | 104.2 | 1,678.50 | 11,125.60 | — | 12,908.30 | Revenue earning equipment, net | 167,304 | 1,505,867 | 8,432,238 | — | 10,105,409 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and equipment, net | 865.7 | 321.9 | 248.8 | — | 1,436.40 | Property and equipment, net | 824,381 | 170,874 | 256,599 | — | 1,251,854 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment in subsidiaries, net | 6,964.90 | 1,260.90 | — | (8,225.8 | ) | — | Investment in subsidiaries, net | 4,413,289 | 460,201 | — | (4,873,490 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other intangible assets, net | 74.6 | 3,893.30 | 64.2 | — | 4,032.10 | Other intangible assets, net | 94,682 | 2,363,617 | 103,935 | — | 2,562,234 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill | 106.2 | 1,018.90 | 216.8 | — | 1,341.90 | Goodwill | 100,221 | 67,228 | 224,645 | — | 392,094 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 12,360.30 | $ | 10,983.60 | $ | 17,309.10 | $ | (17,362.9 | ) | $ | 23,290.10 | Total assets | $ | 9,273,264 | $ | 4,947,543 | $ | 12,078,047 | $ | (8,631,522 | ) | $ | 17,667,332 | |||||||||||||||||||||||||||||||||||||||||||||
LIABILITIES AND EQUITY | LIABILITIES AND EQUITY | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Due to Hertz affiliate | $ | 2,254.20 | $ | 2,421.60 | $ | 1,874.60 | $ | (6,550.4 | ) | $ | — | Due to Hertz affiliate | $ | 1,251,347 | $ | 266,604 | $ | 397,885 | $ | (1,915,424 | ) | $ | 412 | |||||||||||||||||||||||||||||||||||||||||||||
Accounts payable | 239.2 | 193.9 | 566 | — | 999.1 | Accounts payable | 188,695 | 165,258 | 543,536 | — | 897,489 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued liabilities | 605.7 | 45 | 554.3 | (26.6 | ) | 1,178.40 | Accrued liabilities | 607,673 | 209,263 | 309,402 | — | 1,126,338 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued taxes | 54.4 | 29.1 | 1,049.30 | (965.5 | ) | 167.3 | Accrued taxes | 54,559 | 134,186 | (13,889 | ) | (11,872 | ) | 162,984 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | 6,190.00 | 67.7 | 8,756.80 | — | 15,014.50 | Debt | 4,434,274 | 4,237 | 6,469,338 | — | 10,907,849 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Public liability and property damage | 99.3 | 52.8 | 180.1 | — | 332.2 | Public liability and property damage | 107,881 | 14,025 | 159,628 | — | 281,534 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred taxes on income | — | 2,205.60 | 2,070.10 | (1,594.6 | ) | 2,681.10 | Deferred taxes on income | — | 1,449,171 | 2,043,437 | (1,830,736 | ) | 1,661,872 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities | 9,442.80 | 5,015.70 | 15,051.20 | (9,137.1 | ) | 20,372.60 | Total liabilities | 6,644,429 | 2,242,744 | 9,909,337 | (3,758,032 | ) | 15,038,478 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity: | Equity: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The Hertz Corporation and Subsidiaries stockholder's equity | 2,917.50 | 5,967.90 | 2,257.90 | (8,225.8 | ) | 2,917.50 | The Hertz Corporation and Subsidiaries stockholder's equity | 2,628,835 | 2,704,799 | 2,168,691 | (4,873,490 | ) | 2,628,835 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interest | — | — | — | — | — | Noncontrolling interest | — | — | 19 | — | 19 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total equity | 2,917.50 | 5,967.90 | 2,257.90 | (8,225.8 | ) | 2,917.50 | Total equity | 2,628,835 | 2,704,799 | 2,168,710 | (4,873,490 | ) | 2,628,854 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities and equity | $ | 12,360.30 | $ | 10,983.60 | $ | 17,309.10 | $ | (17,362.9 | ) | $ | 23,290.10 | Total liabilities and equity | $ | 9,273,264 | $ | 4,947,543 | $ | 12,078,047 | $ | (8,631,522 | ) | $ | 17,667,332 | |||||||||||||||||||||||||||||||||||||||||||||
Schedule of condensed consolidating statement of income | CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | DOLLAR THRIFTY AUTOMOTIVE GROUP, INC. AND SUBSIDIARIES | CONDENSED CONSOLIDATING STATEMENT OF INCOME | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Three Months Ended June 30, 2013 | For the Year Ended December 31, 2012 | CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME | FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In Millions of Dollars) | (In Thousands of Dollars) | FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2012 | (In Thousands of Dollars) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In Thousands of Dollars) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | Parent | Guarantor | Non-Guarantor | Eliminations | The Hertz | Guarantor | Non- | Eliminations | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | (The Hertz | Subsidiaries | Subsidiaries | Corporation & | Guarantor | Non- | Eliminations | Total | Subsidiaries | Guarantor | Consolidated | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | Corporation) | Subsidiaries | Subsidiaries | Guarantor | Consolidated | Subsidiaries | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total revenues | $ | 1,147.00 | $ | 662.8 | $ | 1,617.50 | $ | (712.7 | ) | $ | 2,714.60 | Total revenues | $ | 4,259,049 | $ | 975,500 | $ | 6,255,039 | $ | (2,468,781 | ) | $ | 9,020,807 | Subsidiaries | Total revenues | $ | 1,480,660 | $ | 436,441 | $ | (368,173 | ) | $ | 1,548,928 | ||||||||||||||||||||||||||||||||||
Total revenues | $ | 1,151,812 | $ | 346,437 | $ | (285,999 | ) | $ | 1,212,250 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses: | Expenses: | COSTS AND EXPENSES: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Direct operating | 2,384,829 | 553,099 | 1,857,860 | — | 4,795,788 | COSTS AND EXPENSES: | Direct vehicle and operating | 708,477 | 51,008 | (8,017 | ) | 751,468 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Direct operating | 618.8 | 357.1 | 430.3 | (0.3 | ) | 1,405.90 | Depreciation of revenue earning equipment and lease charges | 2,402,032 | 198,322 | 2,016,585 | (2,468,781 | ) | 2,148,158 | Direct vehicle and operating | 558,350 | 40,861 | (2,748 | ) | 596,463 | Vehicle depreciation and lease charges, net | 378,898 | 251,526 | (359,467 | ) | 270,957 | |||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative | 448,100 | 123,300 | 374,181 | — | 945,581 | Vehicle depreciation and lease charges, net | 302,648 | 168,446 | (282,726 | ) | 188,368 | Selling, general and administrative | 184,769 | 6,937 | (663 | ) | 191,043 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation of revenue earning equipment and lease charges | 608 | 168.9 | 576.4 | (712.2 | ) | 641.1 | Interest expense, net of interest income | 253,437 | 39,679 | 299,770 | — | 592,886 | Selling, general and administrative | 143,258 | 4,719 | (498 | ) | 147,479 | Interest expense, net | 36,003 | 41,485 | (26 | ) | 77,462 | ||||||||||||||||||||||||||||||||||||||||||||
Other (income) expense, net | (10,656 | ) | (19 | ) | 46,217 | — | 35,542 | Interest expense, net | 11,156 | 33,472 | (27 | ) | 44,601 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative | 122.3 | 64.7 | 88 | (0.2 | ) | 274.8 | Total costs and expenses | 1,308,147 | 350,956 | (368,173 | ) | 1,290,930 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total expenses | 5,477,742 | 914,381 | 4,594,613 | (2,468,781 | ) | 8,517,955 | Total costs and expenses | 1,015,412 | 247,498 | (285,999 | ) | 976,911 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | 88 | 8.5 | 73.7 | — | 170.2 | (Increase) decrease in fair value of derivatives | (5,634 | ) | 2,390 | — | (3,244 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes and equity in earnings (losses) of subsidiaries | (1,218,693 | ) | 61,119 | 1,660,426 | — | 502,852 | (Increase) decrease in fair value of derivatives | — | 525 | — | 525 | INCOME / (LOSS) BEFORE INCOME TAXES and EQUITY IN EARNINGS OF SUBS | 178,147 | 83,095 | — | 261,242 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest income | — | (1.6 | ) | (0.4 | ) | — | (2.0 | ) | (Provision) benefit for taxes on income | 476,444 | (44,846 | ) | (658,671 | ) | — | (227,073 | ) | INCOME / (LOSS) BEFORE INCOME TAXES and EQUITY IN EARNINGS OF SUBS | 136,400 | 98,414 | — | 234,814 | INCOME TAX EXPENSE | 100,772 | 920 | — | 101,692 | |||||||||||||||||||||||||||||||||||||||||
Equity in earnings (losses) of subsidiaries (net of tax) | 1,018,028 | 45,922 | — | (1,063,950 | ) | — | INCOME TAX EXPENSE | 89,212 | 304 | — | 89,516 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other (income) expense, net | 14.5 | (2.2 | ) | (13.4 | ) | — | (1.1 | ) | NET INCOME / (LOSS) BEFORE EQUITY IN EARNINGS OF SUBS | 77,375 | 82,175 | — | 159,550 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder | $ | 275,779 | $ | 62,195 | $ | 1,001,755 | $ | (1,063,950 | ) | $ | 275,779 | NET INCOME / (LOSS) BEFORE EQUITY IN EARNINGS OF SUBS | 47,188 | 98,110 | — | 145,298 | EQUITY IN EARNINGS OF SUBSIDIARIES | 82,175 | — | (82,175 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||
Total expenses | 1,451.60 | 595.4 | 1,154.60 | (712.7 | ) | 2,488.90 | EQUITY IN EARNINGS OF SUBSIDIARIES | 98,110 | — | (98,110 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NET INCOME / (LOSS) | $ | 159,550 | $ | 82,175 | $ | (82,175 | ) | $ | 159,550 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes and equity in earnings (losses) of subsidiaries | (304.6 | ) | 67.4 | 462.9 | — | 225.7 | NET INCOME / (LOSS) | $ | 145,298 | $ | 98,110 | $ | (98,110 | ) | $ | 145,298 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Provision) benefit for taxes on income | 109.3 | (25.2 | ) | (179.9 | ) | — | (95.8 | ) | For the Year Ended December 31, 2011 | COMPREHENSIVE INCOME / (LOSS) | $ | 159,277 | $ | 103,277 | $ | (103,277 | ) | $ | 159,277 | |||||||||||||||||||||||||||||||||||||||||||||||||
(In Thousands of Dollars) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity in earnings (losses) of subsidiaries (net of tax) | 325.2 | 56.8 | — | (382.0 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder | $ | 129.9 | $ | 99 | $ | 283 | $ | (382.0 | ) | $ | 129.9 | Parent | Guarantor | Non-Guarantor | Eliminations | The Hertz | DOLLAR THRIFTY AUTOMOTIVE GROUP, INC. AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Subsidiaries | Corporation & | CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2011 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | Total revenues | $ | 4,068,310 | $ | 809,093 | $ | 5,733,827 | $ | (2,312,850 | ) | $ | 8,298,380 | (In Thousands of Dollars) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2013 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In Millions of Dollars) | Expenses: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Direct operating | 2,262,371 | 497,053 | 1,806,954 | — | 4,566,378 | Guarantor | Non- | Eliminations | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation of revenue earning equipment and lease charges | 1,996,733 | 180,807 | 2,041,049 | (2,312,850 | ) | 1,905,739 | Subsidiaries | Guarantor | Consolidated | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | Selling, general and administrative | 326,794 | 85,414 | 332,909 | — | 745,117 | Subsidiaries | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | Interest expense, net of interest income | 299,099 | 27,226 | 318,378 | — | 644,703 | Total revenues | $ | 1,140,588 | $ | 332,591 | $ | (277,981 | ) | $ | 1,195,198 | |||||||||||||||||||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | Other (income) expense, net | 62,396 | (18 | ) | 170 | — | 62,548 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total revenues | $ | 2,201.60 | $ | 1,284.90 | $ | 3,120.60 | $ | (1,455.9 | ) | $ | 5,151.20 | COSTS AND EXPENSES: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total expenses | 4,947,393 | 790,482 | 4,499,460 | (2,312,850 | ) | 7,924,485 | Direct vehicle and operating | 549,971 | 40,151 | (6,323 | ) | 583,799 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses: | Vehicle depreciation and lease charges, net | 288,433 | 186,677 | (271,127 | ) | 203,983 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes, noncontrolling interest and equity in earnings (losses) of subsidiaries | (879,083 | ) | 18,611 | 1,234,367 | — | 373,895 | Selling, general and administrative | 140,345 | 5,810 | (514 | ) | 145,641 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Direct operating | 1,231.70 | 710 | 815.9 | (0.5 | ) | 2,757.10 | (Provision) benefit for taxes on income (loss) | 342,469 | (10,016 | ) | (476,299 | ) | — | (143,846 | ) | Interest expense, net | 29,552 | 29,364 | (17 | ) | 58,899 | |||||||||||||||||||||||||||||||||||||||||||||||
Equity in earnings (losses) of subsidiaries (net of tax) | 747,103 | 26,215 | — | (773,318 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation of revenue earning equipment and lease charges | 1,269.40 | 321.3 | 1,092.60 | (1,455.2 | ) | 1,228.10 | Total costs and expenses | 1,008,301 | 262,002 | (277,981 | ) | 992,322 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | 210,489 | 34,810 | 758,068 | (773,318 | ) | 230,049 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative | 229.5 | 124.4 | 172.6 | (0.2 | ) | 526.3 | Less: Net income attributable to noncontrolling interest | — | — | (19,560 | ) | — | (19,560 | ) | (Increase) decrease in fair value of derivatives | (5,634 | ) | 2,267 | — | (3,367 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
INCOME / (LOSS) BEFORE INCOME TAXES and EQUITY IN EARNINGS OF SUBS | 137,921 | 68,322 | — | 206,243 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | 169.1 | 18.8 | 145.6 | — | 333.5 | Net income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder | $ | 210,489 | $ | 34,810 | $ | 738,508 | $ | (773,318 | ) | $ | 210,489 | INCOME TAX EXPENSE | 80,270 | 324 | — | 80,594 | ||||||||||||||||||||||||||||||||||||||||||||||
Interest income | — | (3.1 | ) | (0.7 | ) | — | (3.8 | ) | NET INCOME / (LOSS) BEFORE EQUITY IN EARNINGS OF SUBS | 57,651 | 67,998 | — | 125,649 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
EQUITY IN EARNINGS OF SUBSIDIARIES | 67,998 | — | (67,998 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other (income) expense, net | 14.3 | (2.2 | ) | (13.8 | ) | — | (1.7 | ) | CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Year Ended December 31, 2010 | NET INCOME / (LOSS) | $ | 125,649 | $ | 67,998 | $ | (67,998 | ) | $ | 125,649 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total expenses | 2,914.00 | 1,169.20 | 2,212.20 | (1,455.9 | ) | 4,839.50 | (In Thousands of Dollars) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
COMPREHENSIVE INCOME / (LOSS) | $ | 127,358 | $ | 60,093 | $ | (60,093 | ) | $ | 127,358 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes and equity in earnings (losses) of subsidiaries | (712.4 | ) | 115.7 | 908.4 | — | 311.7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | The Hertz | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Provision) benefit for taxes on income | 257.5 | (43.1 | ) | (369.7 | ) | — | (155.3 | ) | (The Hertz | Subsidiaries | Subsidiaries | Corporation & | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity in earnings (losses) of subsidiaries (net of tax) | 611.3 | 111.6 | — | (722.9 | ) | — | Total revenues | $ | 3,961,435 | $ | 701,264 | $ | 5,350,348 | $ | (2,450,513 | ) | $ | 7,562,534 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder | $ | 156.4 | $ | 184.2 | $ | 538.7 | $ | (722.9 | ) | $ | 156.4 | Expenses: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Direct operating | 2,217,864 | 452,674 | 1,612,856 | — | 4,283,394 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation of revenue earning equipment and lease charges | 1,938,416 | 200,252 | 2,179,992 | (2,450,513 | ) | 1,868,147 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative | 320,192 | 67,739 | 276,511 | — | 664,442 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense, net of interest income | 297,276 | 20,068 | 396,880 | — | 714,224 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | Other (income) expense, net | 9,915 | (3 | ) | (9,907 | ) | — | 5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Three Months Ended June 30, 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In Millions of Dollars) | Total expenses | 4,783,663 | 740,730 | 4,456,332 | (2,450,513 | ) | 7,530,212 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes, noncontrolling interest and equity in earnings (losses) of subsidiaries | (822,228 | ) | (39,466 | ) | 894,016 | — | 32,322 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | (Provision) benefit for taxes on income (loss) | 314,692 | 10,718 | (358,732 | ) | — | (33,322 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | Equity in earnings (losses) of subsidiaries (net of tax) | 489,153 | (5,268 | ) | — | (483,885 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total revenues | $ | 1,074.90 | $ | 233.1 | $ | 1,493.10 | $ | (576.0 | ) | $ | 2,225.10 | Net income (loss) | (18,383 | ) | (34,016 | ) | 535,284 | (483,885 | ) | (1,000 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Less: Net income attributable to noncontrolling interest | — | — | (17,383 | ) | — | (17,383 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Direct operating | 609.4 | 141.1 | 438.4 | — | 1,188.90 | Net income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder | $ | (18,383 | ) | $ | (34,016 | ) | $ | 517,901 | $ | (483,885 | ) | $ | (18,383 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation of revenue earning equipment and lease charges | 560.6 | 48 | 487.2 | (576.0 | ) | 519.8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative | 94.4 | 31.4 | 80.8 | — | 206.6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | 56 | 9.1 | 74.2 | — | 139.3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest income | — | (0.2 | ) | (0.3 | ) | — | (0.5 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other (income) expense, net | — | — | (0.6 | ) | — | (0.6 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total expenses | 1,320.40 | 229.4 | 1,079.70 | (576.0 | ) | 2,053.50 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes noncontrolling interest and equity in earnings (losses) of subsidiaries | (245.5 | ) | 3.7 | 413.4 | — | 171.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Provision) benefit for taxes on income | 90.7 | (1.3 | ) | (160.1 | ) | — | (70.7 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity in earnings (losses) of subsidiaries (net of tax) | 255.7 | (33.8 | ) | — | (221.9 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder | $ | 100.9 | $ | (31.4 | ) | $ | 253.3 | $ | (221.9 | ) | $ | 100.9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In Millions of Dollars) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total revenues | $ | 2,042.90 | $ | 442.9 | $ | 2,834.30 | $ | (1,134.0 | ) | $ | 4,186.10 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Direct operating | 1,181.20 | 274.4 | 847.5 | — | 2,303.10 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation of revenue earning equipment and lease charges | 1,099.30 | 92.4 | 977.2 | (1,134.0 | ) | 1,034.90 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative | 198.6 | 56.9 | 158.8 | — | 414.3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | 119.6 | 19 | 150.2 | — | 288.8 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest income | (0.1 | ) | (0.4 | ) | (1.1 | ) | — | (1.6 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other (income) expense, net | — | — | (1.0 | ) | — | (1.0 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total expenses | 2,598.60 | 442.3 | 2,131.60 | (1,134.0 | ) | 4,038.50 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes noncontrolling interest and equity in earnings (losses) of subsidiaries | (555.7 | ) | 0.6 | 702.7 | — | 147.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Provision) benefit for taxes on income | 201.9 | (0.6 | ) | (296.2 | ) | — | (94.9 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity in earnings (losses) of subsidiaries (net of tax) | 406.5 | (22.6 | ) | — | (383.9 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder | $ | 52.7 | $ | (22.6 | ) | $ | 406.5 | $ | (383.9 | ) | $ | 52.7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of condensed consolidating statement of cash flows | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | DOLLAR THRIFTY AUTOMOTIVE GROUP, INC. AND SUBSIDIARIES | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2013 | For the Year Ended December 31, 2012 | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In Millions of Dollars) | (In Thousands of Dollars) | FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2012 | (In Thousands of Dollars) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In Thousands of Dollars) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | The Hertz | Guarantor | Non- | Eliminations | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | (The Hertz | Subsidiaries | Subsidiaries | Corporation & | Guarantor | Non- | Eliminations | Total | Subsidiaries | Guarantor | Consolidated | |||||||||||||||||||||||||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | Corporation) | Subsidiaries | Subsidiaries | Guarantor | Consolidated | Subsidiaries | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | Net cash provided by (used in) operating activities | $ | 1,677,648 | $ | 690,292 | $ | 1,155,789 | $ | (775,317 | ) | $ | 2,748,412 | Subsidiaries | Net cash provided by operating activities | $ | 306,521 | $ | 347,234 | $ | (86,461 | ) | $ | 567,294 | |||||||||||||||||||||||||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | (365.7 | ) | $ | 425.1 | $ | 1,811.90 | $ | (405.3 | ) | $ | 1,466.00 | Net cash provided by operating activities | $ | 206,985 | $ | 319,585 | $ | (91,800 | ) | $ | 434,770 | CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||||||||||||||||||||||||||||||||
Cash flows from investing activities: | CASH FLOWS FROM INVESTING ACTIVITIES: | Revenue-earning vehicles—Purchases | (58,522 | ) | (1,110,010 | ) | — | (1,168,532 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash flows from investing activities: | Net change in restricted cash and cash equivalents | 11,981 | 13,596 | (287,182 | ) | — | (261,605 | ) | Revenue-earning vehicles—Purchases | (38,350 | ) | (1,342,267 | ) | — | (1,380,617 | ) | Revenue-earning vehicles—Proceeds from sales | 42,746 | 715,020 | — | 757,766 | |||||||||||||||||||||||||||||||||||||||||||||||
Net change in restricted cash and cash equivalents | (1.0 | ) | 0.2 | 176.2 | — | 175.4 | Revenue earning equipment expenditures | (88,120 | ) | (763,610 | ) | (8,761,509 | ) | — | (9,613,239 | ) | Revenue-earning vehicles—Proceeds from sales | 26,623 | 730,468 | — | 757,091 | Net change in cash & cash equivalents required minimum balance | 100,000 | — | — | 100,000 | ||||||||||||||||||||||||||||||||||||||||||
Proceeds from disposal of revenue earning equipment | 79,390 | 276,342 | 6,769,364 | — | 7,125,096 | Net change in restricted cash and investments | (4,817 | ) | 108,462 | — | 103,645 | Net change in restricted cash and investments | 16 | (75,477 | ) | — | (75,461 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue earning equipment expenditures | (87.9 | ) | (347.7 | ) | (6,389.9 | ) | — | (6,825.5 | ) | Property and equipment expenditures | (173,053 | ) | (32,022 | ) | (107,711 | ) | — | (312,786 | ) | Property, equipment and software—Purchases | (13,817 | ) | (84 | ) | — | (13,901 | ) | Property, equipment and software—Purchases | (16,543 | ) | (90 | ) | — | (16,633 | ) | |||||||||||||||||||||||||||||||||
Proceeds from disposal of property and equipment | 67,370 | 11,839 | 58,485 | — | 137,694 | Property, equipment and software—Proceeds from sales | 3,491 | — | — | 3,491 | Property, equipment and software—Proceeds from sales | 330 | 29 | — | 359 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from disposal of revenue earning equipment | 47.7 | 16.9 | 3,678.20 | — | 3,742.80 | Capital contributions to subsidiaries | (4,267,118 | ) | — | — | 4,267,118 | — | Dividends received | 79,000 | — | (79,000 | ) | — | Dividends received | 266,675 | — | (266,675 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||
Return of capital from subsidiaries | 1,829,256 | — | — | (1,829,256 | ) | — | Investment in subsidiary | (231,600 | ) | — | 231,600 | — | Investment in subsidiary | (247,713 | ) | — | 247,713 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Property and equipment expenditures | (99.1 | ) | (18.0 | ) | (51.0 | ) | — | (168.1 | ) | Loan to Parent From Non-Guarantor | — | — | (385,108 | ) | 385,108 | — | Intercompany | (35,029 | ) | (56,793 | ) | 91,822 | — | Intercompany | (139,869 | ) | 8,993 | 130,876 | — | |||||||||||||||||||||||||||||||||||||||
Acquisitions, net of cash acquired | (1,708,520 | ) | (196,648 | ) | — | — | (1,905,168 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from disposal of property and equipment | 24.6 | 5.5 | 12.4 | — | 42.5 | Proceeds from disposal of business | — | — | 84,497 | — | 84,497 | Net cash provided by/(used in) investing activities | (214,499 | ) | (560,214 | ) | 244,422 | (530,291 | ) | Net cash provided by/(used in) investing activities | (52,880 | ) | (461,535 | ) | 111,914 | (402,501 | ) | |||||||||||||||||||||||||||||||||||||||||
Other investing activities | — | — | (1,779 | ) | — | (1,779 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital contributions to subsidiaries | (485.7 | ) | — | — | 485.7 | — | CASH FLOWS FROM FINANCING ACTIVITIES: | CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash provided by (used in) investing activities | (4,248,814 | ) | (690,503 | ) | (2,630,943 | ) | 2,822,970 | (4,747,290 | ) | Debt and other obligations: | Debt and other obligations: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Return of capital from subsidiaries | 651 | — | — | (651.0 | ) | — | Proceeds from vehicle debt and other obligations | — | 581,169 | — | 581,169 | Proceeds from vehicle debt and other obligations | — | 1,592,466 | (54,563 | ) | 1,537,903 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Cash flows from financing activities: | Payments of vehicle debt and other obligations | — | (500,000 | ) | — | (500,000 | ) | Payments of vehicle debt and other obligations | — | (1,396,350 | ) | 9,277 | (1,387,073 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan to Parent/Guarantor from Non-Guarantor | — | — | 57 | (57.0 | ) | — | Proceeds from issuance of long-term debt | 2,210,000 | — | 27,280 | — | 2,237,280 | Issuance of common shares | 1,694 | — | — | 1,694 | Payments—non-vehicle debt | (148,125 | ) | — | — | (148,125 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Payment of long-term debt | (650,407 | ) | (18 | ) | (301,719 | ) | — | (952,144 | ) | Net settlement of employee withholding taxes on share-based awards | (1,215 | ) | — | — | (1,215 | ) | Issuance of common shares | 4,774 | — | — | 4,774 | |||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions, net of cash acquired | — | (2.8 | ) | (226.4 | ) | — | (229.2 | ) | Short-term borrowings: | Purchases of common stock for the treasury | (29,136 | ) | — | — | (29,136 | ) | Net settlement of employee withholding taxes on share-based awards | (3,205 | ) | — | — | (3,205 | ) | |||||||||||||||||||||||||||||||||||||||||||||
Proceeds | — | — | 438,387 | — | 438,387 | Financing issue costs | (7,825 | ) | (945 | ) | — | (8,770 | ) | Early termination of interest rate swap | (8,815 | ) | — | — | (8,815 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from disposal of business | — | — | — | — | — | Payments | (26,775 | ) | — | (1,253,368 | ) | — | (1,280,143 | ) | Dividends paid | — | (79,000 | ) | 79,000 | — | Forward stock repurchase agreement | (100,000 | ) | — | — | (100,000 | ) | |||||||||||||||||||||||||||||||||||||||||
Proceeds (payments) under the revolving lines of credit, net | 220,000 | (1,262 | ) | 1,054,426 | — | 1,273,164 | Capital contribution from Parent | — | 231,622 | (231,622 | ) | — | Financing issue costs | (2,038 | ) | (12,719 | ) | — | (14,757 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
Other investing activities | — | — | (2.0 | ) | — | (2.0 | ) | Capital contributions received from parent | — | — | 4,267,118 | (4,267,118 | ) | — | Dividends paid | — | (266,675 | ) | 266,675 | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Loan to Parent From Non-Guarantor | 385,108 | — | — | (385,108 | ) | — | Net cash provided by/(used in) financing activities | (36,482 | ) | 232,846 | (152,622 | ) | 43,742 | Capital contribution from Parent | — | 246,842 | (246,842 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Net cash provided by (used in) investing activities | 49.6 | (345.9 | ) | (2,745.5 | ) | (222.3 | ) | (3,264.1 | ) | Payment of dividends and return of capital | — | — | (2,604,573 | ) | 2,604,573 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends paid | (25,000 | ) | — | — | — | (25,000 | ) | CHANGE IN CASH AND CASH EQUIVALENTS | (43,996 | ) | (7,783 | ) | — | (51,779 | ) | Net cash provided by/(used in) financing activities | (257,409 | ) | 163,564 | (25,453 | ) | (119,298 | ) | |||||||||||||||||||||||||||||||||||||||||||||
Cash flows from financing activities: | Proceeds from employee stock purchase plan | 4,275 | — | — | — | 4,275 | CASH AND CASH EQUIVALENTS: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan with Hertz Global Holdings, Inc. | (13,220 | ) | — | — | — | (13,220 | ) | Beginning of Period | 446,239 | 62,409 | — | 508,648 | CHANGE IN CASH AND CASH EQUIVALENTS | (3,768 | ) | 49,263 | — | 45,495 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from issuance of long-term debt | 250 | — | 954.4 | — | 1,204.40 | Purchase of noncontrolling interest | (38,000 | ) | — | — | — | (38,000 | ) | CASH AND CASH EQUIVALENTS: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payment of financing costs | (35,215 | ) | (3,316 | ) | (10,902 | ) | — | (49,433 | ) | End of Period | $ | 402,243 | $ | 54,626 | $ | — | $ | 456,869 | Beginning of Period | 450,007 | 13,146 | — | 463,153 | |||||||||||||||||||||||||||||||||||||||||||||
Payment of long-term debt | (22.8 | ) | — | (297.9 | ) | — | (320.7 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash provided by (used in) financing activities | 2,030,766 | (4,596 | ) | 1,616,649 | (2,047,653 | ) | 1,595,166 | End of Period | $ | 446,239 | $ | 62,409 | $ | — | $ | 508,648 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term borrowings: | DOLLAR THRIFTY AUTOMOTIVE GROUP, INC. AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effect of foreign exchange rate changes on cash and cash equivalents | — | — | 5,739 | — | 5,739 | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds | — | — | 332 | — | 332 | FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2011 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net change in cash and cash equivalents during the period | (540,400 | ) | (4,807 | ) | 147,234 | — | (397,973 | ) | (In Thousands of Dollars) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payments | — | — | (435.9 | ) | — | (435.9 | ) | Cash and cash equivalents at beginning of period | 565,002 | 7,385 | 358,821 | — | 931,208 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds under the revolving lines of credit | 1,360.00 | 1.6 | 2,318.50 | — | 3,680.10 | Cash and cash equivalents at end of period | $ | 24,602 | $ | 2,578 | $ | 506,055 | $ | — | $ | 533,235 | Guarantor | Non- | Eliminations | Total | ||||||||||||||||||||||||||||||||||||||||||||||||
Subsidiaries | Guarantor | Consolidated | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payments under the revolving lines of credit | (735.0 | ) | (5.0 | ) | (1,477.9 | ) | — | (2,217.9 | ) | Subsidiaries | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash provided by operating activities | $ | 268,555 | $ | 262,206 | $ | (72,151 | ) | $ | 458,610 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital contributions received from parent | — | — | 485.7 | (485.7 | ) | — | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Year Ended December 31, 2011 | Revenue-earning vehicles—Purchases | (46,155 | ) | (937,724 | ) | — | (983,879 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan to Parent/Guarantor from Non-Guarantor | — | (57.0 | ) | — | 57 | — | (In Thousands of Dollars) | Revenue-earning vehicles—Proceeds from sales | 31,135 | 460,873 | — | 492,008 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net change in cash & cash equivalents required minimum balance | 100,000 | — | — | 100,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payment of dividends and return of capital | — | — | (1,056.3 | ) | 1,056.30 | — | Net change in restricted cash and investments | 270 | 76,036 | — | 76,306 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | The Hertz | Property, equipment and software—Purchases | (11,108 | ) | (88 | ) | — | (11,196 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends paid to Parent | (479.7 | ) | — | — | — | (479.7 | ) | (The Hertz | Subsidiaries | Subsidiaries | Corporation & | Property, equipment and software—Proceeds from sales | 324 | 29 | — | 353 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Dividends received | 191,675 | — | (191,675 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from employee stock purchase plan | 2.4 | — | — | — | 2.4 | Net cash provided by (used in) operating activities | $ | 1,000,597 | $ | 773,170 | $ | 1,038,124 | $ | (553,370 | ) | $ | 2,258,521 | Investment in subsidiary | (249,389 | ) | — | 249,389 | — | |||||||||||||||||||||||||||||||||||||||||||||
Intercompany | (119,298 | ) | 5,583 | 113,715 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan with Hertz Global Holdings, Inc. | 12 | — | — | — | 12 | Cash flows from investing activities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net change in restricted cash and cash equivalents | (28,570 | ) | (2,662 | ) | (70,534 | ) | — | (101,766 | ) | Net cash provided by/(used in) investing activities | (102,546 | ) | (395,291 | ) | 171,429 | (326,408 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Payment of financing costs | (7.9 | ) | (0.8 | ) | (11.9 | ) | — | (20.6 | ) | Revenue earning equipment expenditures | (142,134 | ) | (670,056 | ) | (8,642,121 | ) | — | (9,454,311 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from disposal of revenue earning equipment | 163,330 | 170,522 | 7,516,590 | — | 7,850,442 | CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash provided by (used in) financing activities | 379 | (61.2 | ) | 810.7 | 627.6 | 1,756.10 | Property and equipment expenditures | (189,562 | ) | (29,696 | ) | (62,437 | ) | — | (281,695 | ) | Debt and other obligations: | |||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from disposal of property and equipment | 23,952 | 9,263 | 20,599 | — | 53,814 | Proceeds from vehicle debt and other obligations | — | 1,192,226 | (54,323 | ) | 1,137,903 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effect of foreign exchange rate changes on cash and cash equivalents | — | — | (8.2 | ) | — | (8.2 | ) | Capital contributions to subsidiaries | (3,549,088 | ) | — | — | 3,549,088 | — | Payments of vehicle debt and other obligations | — | (1,081,350 | ) | 9,277 | (1,072,073 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Return of capital from subsidiaries | 2,590,025 | — | — | (2,590,025 | ) | — | Payments—non-vehicle debt | (148,125 | ) | — | — | (148,125 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net change in cash and cash equivalents during the period | 62.9 | 18 | (131.1 | ) | — | (50.2 | ) | Loan to Parent from Non-Guarantor | — | — | (490,273 | ) | 490,273 | — | Issuance of common shares | 2,921 | — | — | 2,921 | |||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions, net of cash acquired | (214,384 | ) | (2,100 | ) | (10,597 | ) | — | (227,081 | ) | Net settlement of employee withholding taxes on share-based awards | (3,205 | ) | — | — | (3,205 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents at beginning of period | 24.6 | 6.5 | 502.1 | — | 533.2 | Purchase of short-term investments, net | (32,891 | ) | — | — | — | (32,891 | ) | Financing issue costs | (1,997 | ) | (11,306 | ) | — | (13,303 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Other investing activities | — | (13,602 | ) | 14,188 | — | 586 | Dividends paid | — | (191,675 | ) | 191,675 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents at end of period | $ | 87.5 | $ | 24.5 | $ | 371 | $ | — | $ | 483 | Capital contribution from Parent | — | 245,907 | (245,907 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash provided by (used in) investing activities | (1,379,322 | ) | (538,331 | ) | (1,724,585 | ) | 1,449,336 | (2,192,902 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash provided by/(used in) financing activities | (150,406 | ) | 153,802 | (99,278 | ) | (95,882 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | Proceeds from issuance of long-term debt | 2,455,309 | — | 607,170 | — | 3,062,479 | CHANGE IN CASH AND CASH EQUIVALENTS | 15,603 | 20,717 | — | 36,320 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2012 | Payment of long-term debt | (3,596,295 | ) | (17 | ) | (52,988 | ) | — | (3,649,300 | ) | CASH AND CASH EQUIVALENTS: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In Millions of Dollars) | Short-term borrowings: | Beginning of Period | 450,007 | 13,146 | — | 463,153 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds | — | — | 460,890 | — | 460,890 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payments | (29,224 | ) | — | (1,164,832 | ) | — | (1,194,056 | ) | End of Period | $ | 465,610 | $ | 33,863 | $ | — | $ | 499,473 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds (payments) under the revolving lines of credit, net | (29,128 | ) | (229,778 | ) | 201,577 | — | (57,329 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | The Hertz | Distributions to noncontrolling interest | — | — | (23,100 | ) | — | (23,100 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(The Hertz | Subsidiaries | Guarantor | Corporation & | Capital contributions received from parent | — | — | 3,549,088 | (3,549,088 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | Subsidiaries | Payment of dividends and return of capital | (22,950 | ) | — | (3,143,395 | ) | 3,143,395 | (22,950 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | (219.0 | ) | $ | 334.2 | $ | 1,409.30 | $ | (341.5 | ) | $ | 1,183.00 | Proceeds from employee stock purchase plan | 3,577 | — | — | — | 3,577 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Loan to Parent from Non-Guarantor | 490,273 | — | — | (490,273 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash flows from investing activities: | Loan from Hertz Global Holdings, Inc. | (984 | ) | — | — | — | (984 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payment of financing costs | (81,229 | ) | (2,817 | ) | (7,436 | ) | — | (91,482 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net change in restricted cash and cash equivalents | 12.6 | 18.2 | 99.3 | — | 130.1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash provided by (used in) financing activities | (810,651 | ) | (232,612 | ) | 426,974 | (895,966 | ) | (1,512,255 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue earning equipment expenditures | (73.8 | ) | (334.1 | ) | (5,303.1 | ) | — | (5,711.0 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effect of foreign exchange rate changes on cash and cash equivalents | — | — | 3,838 | — | 3,838 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from disposal of revenue earning equipment | 54.4 | 162.6 | 3,391.30 | — | 3,608.30 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net decrease in cash and cash equivalents during the period | (1,189,376 | ) | 2,227 | (255,649 | ) | — | (1,442,798 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and equipment expenditures | (80.2 | ) | (24.2 | ) | (32.8 | ) | — | (137.2 | ) | Cash and cash equivalents at beginning of period | 1,754,378 | 5,158 | 614,470 | — | 2,374,006 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from disposal of property and equipment | 44.3 | 4.2 | 7.9 | — | 56.4 | Cash and cash equivalents at end of period | $ | 565,002 | $ | 7,385 | $ | 358,821 | $ | — | $ | 931,208 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital contributions to subsidiaries | (2,215.9 | ) | — | — | 2,215.90 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Return of capital from subsidiaries | 2,220.60 | — | — | (2,220.6 | ) | — | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Year Ended December 31, 2010 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions, net of cash acquired | — | (161.8 | ) | — | — | (161.8 | ) | (In Thousands of Dollars) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan to Parent from Non-Guarantor | — | — | (18.3 | ) | 18.3 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | The Hertz | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other investing activities | — | — | (0.6 | ) | — | (0.6 | ) | (The Hertz | Subsidiaries | Subsidiaries | Corporation & | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporation) | Subsidiaries | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash provided by (used in) investing activities | (38.0 | ) | (335.1 | ) | (1,856.3 | ) | 13.6 | (2,215.8 | ) | Net cash provided by (used in) operating activities | $ | 337,055 | $ | 88,941 | $ | 2,193,486 | $ | (381,555 | ) | $ | 2,237,927 | |||||||||||||||||||||||||||||||||||||||||||||||
Cash flows from financing activities: | Cash flows from investing activities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from issuance of long-term debt | 260 | — | 10.5 | — | 270.5 | Net change in restricted cash and cash equivalents | 19,932 | (17,514 | ) | 158,098 | — | 160,516 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue earning equipment expenditures | (188,057 | ) | (96,452 | ) | (8,156,363 | ) | — | (8,440,872 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payment of long-term debt | (637.3 | ) | — | (5.8 | ) | — | (643.1 | ) | Proceeds from disposal of revenue earning equipment | 169,451 | 75,139 | 7,273,856 | — | 7,518,446 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and equipment expenditures | (92,415 | ) | (14,137 | ) | (72,657 | ) | — | (179,209 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term borrowings: | Proceeds from disposal of property and equipment | 4,311 | 10,416 | 24,178 | — | 38,905 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital contributions to subsidiaries | (1,544,332 | ) | — | — | 1,544,332 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds | — | — | 246.7 | — | 246.7 | Return of capital from subsidiaries | 1,877,095 | — | — | (1,877,095 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions, net of cash acquired | (35 | ) | (43,789 | ) | (3,747 | ) | — | (47,571 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payments | (26.8 | ) | — | (629.4 | ) | — | (656.2 | ) | Purchase of short-term investments, net | 3,183 | 94 | 214 | — | 3,491 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other investing activities | — | — | 2,726 | — | 2,726 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds under the revolving lines of credit | 1,360.00 | 1.9 | 2,173.60 | — | 3,535.50 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash provided by (used in) investing activities | 249,133 | (86,243 | ) | (773,695 | ) | (332,763 | ) | (943,568 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payments under the revolving lines of credit | (950.0 | ) | (2.9 | ) | (1,038.8 | ) | — | (1,991.7 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase of noncontrolling interest | (38.0 | ) | — | — | — | (38.0 | ) | Proceeds from issuance of long-term debt | 1,209,866 | — | 1,425,847 | — | 2,635,713 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payment of long-term debt | (73,342 | ) | (68 | ) | (2,880,823 | ) | — | (2,954,233 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital contributions received from parent | — | — | 2,215.90 | (2,215.9 | ) | — | Short-term borrowings: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds | — | — | 490,490 | — | 490,490 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payment of dividends and return of capital | (12.5 | ) | — | (2,562.1 | ) | 2,562.10 | (12.5 | ) | Payments | (2,615 | ) | — | (968,334 | ) | — | (970,949 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds (payments) under the revolving lines of credit, net | (18,907 | ) | (3,515 | ) | 1,048,492 | — | 1,026,070 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repayment of Loan to Parent from Non-Guarantor | 18.3 | — | — | (18.3 | ) | — | Distributions to noncontrolling interest | — | — | (18,200 | ) | — | (18,200 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital contributions received from parent | — | — | 1,544,332 | (1,544,332 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from employee stock purchase plan | 2 | — | — | — | 2 | Payment of dividends and return of capital | (23,000 | ) | — | (2,258,650 | ) | 2,258,650 | (23,000 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from employee stock purchase plan | 3,208 | — | — | — | 3,208 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan from Hertz Global Holdings, Inc. | (13.9 | ) | — | — | — | (13.9 | ) | Loan from Hertz Global Holdings, Inc. | (6,173 | ) | — | — | — | (6,173 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Excess tax benefits from exercise of stock | (258 | ) | — | — | — | (258 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payment of financing costs | (4.2 | ) | (1.5 | ) | (1.2 | ) | — | (6.9 | ) | Payment of financing costs | (29,111 | ) | — | (49,040 | ) | — | (78,151 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash provided by (used in) financing activities | (42.4 | ) | (2.5 | ) | 409.4 | 327.9 | 692.4 | Net cash provided by (used in) financing activities | 1,059,668 | (3,583 | ) | (1,665,886 | ) | 714,318 | 104,517 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Effect of foreign exchange rate changes on cash and cash equivalents | — | — | (4.8 | ) | — | (4.8 | ) | Effect of foreign exchange rate changes on cash and cash equivalents | — | — | (10,337 | ) | — | (10,337 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net decrease in cash and cash equivalents during the period | (299.4 | ) | (3.4 | ) | (42.4 | ) | — | (345.2 | ) | Net decrease in cash and cash equivalents during the period | 1,645,856 | (885 | ) | (256,432 | ) | — | 1,388,539 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents at beginning of period | 108,522 | 6,043 | 870,902 | — | 985,467 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents at beginning of period | 565 | 7.4 | 358.8 | — | 931.2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents at end of period | $ | 1,754,378 | $ | 5,158 | $ | 614,470 | $ | — | $ | 2,374,006 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents at end of period | $ | 265.6 | $ | 4 | $ | 316.4 | $ | — | $ | 586 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BASIS_OF_PRESENTATION_AND_SUMM2
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - DOLLAR THRIFTY (Details) (Dollar Thrifty Automotive Group Inc., USD $) | 9 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2012 | Sep. 30, 2011 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 |
Cash and Cash Equivalents-Required Minimum Balance | |||||
Required minimum balance of cash and cash equivalents to be maintained under the amended Senior Secured Credit Facilities | $100,000 | $100,000 | |||
Restricted Cash and Investments | |||||
Interest income earned on restricted cash and investments | $524 | $226 | $397 | $653 | $3,202 |
Non-Program Vehicles | |||||
Revenue-Earning Vehicles and Related Vehicle Depreciation Expense | |||||
Non-program vehicles as a percentage of Company's total fleet | 96.00% | ||||
Non-Program Vehicles | Minimum | |||||
Revenue-Earning Vehicles and Related Vehicle Depreciation Expense | |||||
Average holding term | 18 months | ||||
Non-Program Vehicles | Maximum | |||||
Revenue-Earning Vehicles and Related Vehicle Depreciation Expense | |||||
Average holding term | 22 months | ||||
Program Vehicles | Minimum | |||||
Revenue-Earning Vehicles and Related Vehicle Depreciation Expense | |||||
Average holding term | 6 months | ||||
Program Vehicles | Maximum | |||||
Revenue-Earning Vehicles and Related Vehicle Depreciation Expense | |||||
Average holding term | 8 months |
BASIS_OF_PRESENTATION_AND_SUMM3
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - DOLLAR THRIFTY (Details 2) | 12 Months Ended | |||||
Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2011 | |
Furniture and equipment | Furniture and equipment | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | |
Minimum | Maximum | Buildings and improvements | Buildings and improvements | Furniture and equipment | Furniture and equipment | |
Minimum | Maximum | Minimum | Maximum | |||
Property and Equipment | ||||||
Estimated useful lives | 1 year | 15 years | 10 years | 30 years | 1 year | 7 years |
BASIS_OF_PRESENTATION_AND_SUMM4
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - DOLLAR THRIFTY (Details 3) (Dollar Thrifty Automotive Group Inc.) | 12 Months Ended |
Dec. 31, 2011 | |
Software | Minimum | |
Finite lived intangible assets | |
Amortization period | 3 years |
Software | Maximum | |
Finite lived intangible assets | |
Amortization period | 5 years |
Website Development Costs | |
Finite lived intangible assets | |
Amortization period | 5 years |
BASIS_OF_PRESENTATION_AND_SUMM5
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - DOLLAR THRIFTY (Details 4) (USD $) | 12 Months Ended | ||||||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | Sep. 30, 2012 |
Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | ||||
Accounts Payable | |||||||
Book overdrafts | $19 | $17 | $13.30 | ||||
Advertising Costs | |||||||
Advertising expense | $158 | $145.80 | $133.80 | $20.10 | $20.90 | $21.20 | |
Stock-Based Compensation | |||||||
Stock options issued (in shares) | 1,120,000 | ||||||
Weighted average grant-date fair value per share (in dollars per share) | $4.44 |
EARNINGS_PER_SHARE_DOLLAR_THRI5
EARNINGS PER SHARE - DOLLAR THRIFTY (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||||||||||||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Dec. 31, 2010 | Sep. 30, 2010 | Jun. 30, 2010 | Mar. 31, 2010 | Sep. 30, 2012 | Sep. 30, 2011 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 |
Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | |||||||||||||||
Earnings per share | ||||||||||||||||||||||||||||
Net income | $129,900 | ($28,300) | $251,300 | $101,000 | ($48,200) | $58,800 | $212,600 | $62,100 | ($123,000) | $156,400 | $52,700 | $275,779 | $210,489 | ($18,383) | $55,500 | $33,901 | $66,621 | $42,505 | $16,523 | $12,496 | $49,165 | $42,263 | $27,292 | $145,298 | $125,649 | $159,550 | $131,216 | $45,022 |
Basic EPS: | ||||||||||||||||||||||||||||
Weighted average common shares | 27,905,118 | 28,958,718 | 28,217,067 | 28,872,747 | 28,965,187 | 28,623,108 | 22,687,077 | |||||||||||||||||||||
Basic EPS (in dollars per share) | $1.99 | $1.16 | $2.30 | $1.47 | $0.57 | $0.44 | $1.72 | $1.48 | $0.96 | $5.15 | $4.35 | $5.51 | $4.58 | $1.98 | ||||||||||||||
Diluted EPS: | ||||||||||||||||||||||||||||
Weighted average common shares | 27,905,118 | 28,958,718 | 28,217,067 | 28,872,747 | 28,965,187 | 28,623,108 | 22,687,077 | |||||||||||||||||||||
Shares contingently issuable: | ||||||||||||||||||||||||||||
Stock options | 803,982 | 1,964,321 | 854,272 | 1,984,419 | 1,913,783 | 1,226,089 | 762,673 | |||||||||||||||||||||
Performance awards and non-vested shares | 127,418 | 113,734 | 111,431 | 90,581 | 94,261 | 125,225 | 255,775 | |||||||||||||||||||||
Employee compensation shares deferred | 24,577 | 46,604 | 29,805 | 48,440 | 47,232 | 49,374 | 105,402 | |||||||||||||||||||||
Director compensation shares deferred | 224,535 | 221,452 | 223,952 | 220,554 | 220,778 | 221,485 | 155,611 | |||||||||||||||||||||
Shares applicable to diluted | 29,085,630 | 31,304,829 | 29,436,527 | 31,216,741 | 31,241,241 | 30,245,281 | 23,966,538 | |||||||||||||||||||||
Diluted EPS (in dollars per share) | $1.91 | $1.08 | $2.13 | $1.36 | $0.53 | $0.41 | $1.62 | $1.40 | $0.91 | $4.94 | $4.03 | $5.11 | $4.34 | $1.88 | ||||||||||||||
Anti-dilutive outstanding common stock equivalents excluded from computation of diluted EPS (in shares) | 356,970 | |||||||||||||||||||||||||||
Increase(decrease) in the number of shares included in the diluted EPS calculation due to assumed option exercises | -500,000 | 800,000 | 700,000 |
RECEIVABLES_DOLLAR_THRIFTY_Det1
RECEIVABLES - DOLLAR THRIFTY (Details) (USD $) | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Sep. 30, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Sep. 30, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Sep. 30, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | |||
Trade accounts receivable and other | Trade accounts receivable and other | Trade accounts receivable and other | Vehicle manufacturer receivables | Vehicle manufacturer receivables | Vehicle manufacturer receivables | Car sales receivable | Car sales receivable | Car sales receivable | |||||||
RECEIVABLES | |||||||||||||||
Receivables, gross | $130,380 | $98,200 | $74,171 | $85,476 | $74,403 | $68,528 | $41,078 | $21,510 | $4,543 | $3,826 | $2,287 | $1,100 | |||
Less: Allowance for doubtful accounts | -26,200 | -25,113 | -20,282 | -2,163 | -2,840 | -4,715 | |||||||||
Receivables, net | $1,656,000 | $1,886,596 | $1,616,382 | $128,217 | $95,360 | $69,456 | |||||||||
Period within which receivables are generally received | 60 days | 60 days |
REVENUEEARNING_VEHICLES_DOLLAR2
REVENUE-EARNING VEHICLES - DOLLAR THRIFTY (Details) (USD $) | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | Sep. 30, 2012 |
Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | ||||
Revenue-earnings vehicles | |||||||
Revenue-earning vehicles | $15,489,800,000 | $12,591,132,000 | $9,678,765,000 | $1,858,766,000 | $1,668,473,000 | ||
Less: Accumulated depreciation | -2,169,100,000 | -1,881,030,000 | -1,360,012,000 | -390,931,000 | -326,651,000 | ||
Total revenue earning equipment | 15,706,000,000 | 12,908,336,000 | 10,105,409,000 | 1,467,835,000 | 1,341,822,000 | 1,875,607,000 | |
Payments recognized from manufacturers for vehicles acquired | $180,500,000 | $175,600,000 | $524,400,000 |
VEHICLE_DEPRECIATION_AND_LEASE5
VEHICLE DEPRECIATION AND LEASE CHARGES, NET - DOLLAR THRIFTY (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2012 | Sep. 30, 2011 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | |
Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | ||||||||
item | item | item | item | item | item | item | ||||||||
Vehicle depreciation and lease charges | ||||||||||||||
Depreciation of revenue-earning vehicles and other | $611,800,000 | $539,500,000 | $1,184,800,000 | $1,070,900,000 | $2,165,200,000 | $1,921,800,000 | $1,747,000,000 | $94,323,000 | $80,667,000 | $230,391,000 | $247,112,000 | $317,844,000 | $362,284,000 | $461,178,000 |
Net gains from disposition of revenue-earning vehicles | 11,300,000 | -41,200,000 | 10,000,000 | -80,600,000 | -96,800,000 | -112,200,000 | 42,900,000 | -5,192,000 | -17,368,000 | -42,023,000 | -43,129,000 | -46,887,000 | -63,084,000 | -35,086,000 |
Total | 641,100,000 | 519,800,000 | 1,228,100,000 | 1,034,900,000 | 2,148,158,000 | 1,905,739,000 | 1,868,147,000 | 89,131,000 | 63,299,000 | 188,368,000 | 203,983,000 | 270,957,000 | 299,200,000 | 426,092,000 |
Average gain on Non-Program Vehicles | ||||||||||||||
Number of Non-Program Vehicles sold | 15,463 | 15,441 | 48,530 | 30,787 | 39,398 | 57,100 | 50,099 | |||||||
Average gain on vehicles sold (per vehicle) | 336 | 1,125 | 866 | 1,401 | 1,190 | 1,105 | 700 | |||||||
Components of vehicle depreciation per vehicle per month | ||||||||||||||
Average depreciable fleet (units) | 120,757 | 113,719 | 113,968 | 110,125 | 108,127 | 103,207 | 105,301 | |||||||
Average depreciation rate | 260 | 236 | 225 | 249 | 245 | 293 | 365 | |||||||
Average gain on vehicles sold | -14 | -50 | -41 | -43 | -36 | -51 | -28 | |||||||
Average vehicle depreciation and lease charges, net | $246 | $186 | $184 | $206 | $209 | $242 | $337 |
PROPERTY_AND_EQUIPMENT_DOLLAR_2
PROPERTY AND EQUIPMENT - DOLLAR THRIFTY (Details) (USD $) | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | Sep. 30, 2012 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2011 | Dec. 31, 2010 |
Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | ||||
Land | Land | Buildings and improvements | Buildings and improvements | Furniture and equipment | Furniture and equipment | Leasehold improvements | Leasehold improvements | Construction in progress | Construction in progress | ||||||||
PROPERTY AND EQUIPMENT | |||||||||||||||||
Property and equipment, gross | $2,591,500,000 | $2,549,882,000 | $2,197,027,000 | $248,760,000 | $248,636,000 | $12,009,000 | $12,022,000 | $21,382,000 | $23,325,000 | $81,014,000 | $81,847,000 | $128,938,000 | $128,742,000 | $5,293,000 | $2,824,000 | ||
Less: Accumulated depreciation and amortization | -1,125,900,000 | -1,113,496,000 | -945,173,000 | -158,532,000 | -164,358,000 | ||||||||||||
Total property and equipment | 1,465,600,000 | 1,436,386,000 | 1,251,854,000 | 90,228,000 | 96,198,000 | 77,887,000 | 84,278,000 | ||||||||||
Non-cash charge related to the impairment of assets, pretax | 400,000 | 1,600,000 | |||||||||||||||
Non-cash charge related to the impairment of assets, after-tax | $300,000 | $900,000 |
SOFTWARE_DOLLAR_THRIFTY_Detail
SOFTWARE - DOLLAR THRIFTY (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2010 | Sep. 30, 2012 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | |
Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | ||||||||
Software | Software | Software | |||||||||||
Software | |||||||||||||
Finite-lived intangible assets, gross | $1,148,600,000 | $1,148,600,000 | $1,154,300,000 | $747,300,000 | $83,501,000 | $80,144,000 | |||||||
Less: Accumulated amortization | -528,300,000 | -528,300,000 | -467,800,000 | -393,300,000 | -61,966,000 | -55,967,000 | |||||||
Net Carrying Value | 620,300,000 | 620,300,000 | 686,500,000 | 354,000,000 | 24,177,000 | 19,438,000 | 21,535,000 | 21,535,000 | 24,177,000 | ||||
Amortization expense | 30,200,000 | 19,800,000 | 60,700,000 | 39,000,000 | 84,096,000 | 70,039,000 | 64,713,000 | 7,500,000 | 7,300,000 | 8,000,000 | |||
Estimated aggregate amortization expense of finite-lived intangible assets | |||||||||||||
Year one | 116,400,000 | 116,400,000 | 116,100,000 | 6,900,000 | |||||||||
Year two | 113,900,000 | 113,900,000 | 113,700,000 | 5,300,000 | |||||||||
Year three | 64,900,000 | 64,900,000 | 64,800,000 | 3,800,000 | |||||||||
Year four | 51,800,000 | 51,800,000 | 51,800,000 | 2,900,000 | |||||||||
Year five | 1,700,000 | ||||||||||||
Asset impairment charges (pre-tax) | 1,100,000 | 700,000 | 1,000,000 | ||||||||||
Asset impairment charges (after-tax) | $300,000 | $600,000 |
DEBT_AND_OTHER_OBLIGATIONS_DOL5
DEBT AND OTHER OBLIGATIONS - DOLLAR THRIFTY (Details) | Jun. 30, 2013 | Dec. 31, 2012 | Aug. 31, 2012 | Dec. 31, 2011 | Apr. 30, 2013 | Dec. 31, 2011 | Sep. 30, 2012 | Dec. 31, 2010 | Dec. 31, 2011 | Dec. 31, 2010 | Sep. 30, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2012 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2010 | Oct. 31, 2011 | Dec. 31, 2010 | Oct. 31, 2011 | Sep. 29, 2011 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 29, 2011 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2012 | Dec. 31, 2011 | Dec. 31, 2011 | Sep. 30, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | Apr. 18, 2011 | Apr. 18, 2011 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2010 | Dec. 31, 2010 | Aug. 30, 2011 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2011 | Sep. 30, 2012 | Dec. 31, 2011 | Feb. 16, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2012 | Dec. 31, 2011 | Dec. 31, 2011 | Sep. 30, 2012 | Dec. 31, 2011 | Dec. 31, 2011 | |
USD ($) | USD ($) | USD ($) | USD ($) | LIBOR | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | ||
USD ($) | USD ($) | USD ($) | Vehicle debt and other obligations | Vehicle debt and other obligations | Asset-backed medium-term notes | Asset-backed medium-term notes | Asset-backed medium-term notes | Asset-backed medium-term notes Series 2011-2 notes (matures May 2015) | Asset-backed medium-term notes Series 2011-2 notes (matures May 2015) | Asset-backed medium-term notes Series 2011-2 notes (matures May 2015) | Asset-backed medium-term notes Series 2011-2 notes (matures May 2015) | Asset-backed medium-term notes Series 2011-2 notes (matures May 2015) | Asset-backed medium-term notes Series 2011-2 notes (matures May 2015) | Asset-backed medium-term notes Series 2011-1 notes (matures February 2015) | Asset-backed medium-term notes Series 2011-1 notes (matures February 2015) | Asset-backed medium-term notes Series 2011-1 Class A Notes | Asset-backed medium-term notes Series 2011-1 Class A Notes | Asset-backed medium-term notes Series 2011-1 Class B Notes | Asset-backed medium-term notes Series 2011-1 Class B Notes | Asset-backed medium-term notes Series 2007-1 notes (matures July 2012) | Asset-backed medium-term notes Series 2007-1 notes (matures July 2012) | Asset-backed medium-term notes Series 2006-1 notes (matured May 2011) | Series 2010-1 variable funding note (terminated October 2011) | Series 2010-1 variable funding note (terminated October 2011) | Series 2010-2 variable funding note | Series 2010-3 variable funding note | Series 2010-3 variable funding note | Series 2010-3 variable funding note | Series 2010-3 variable funding note | Series 2010-3 variable funding note | Series 2010-3 variable funding note | Series 2010-3 variable funding note | Series 2010-3 variable funding note | Series 2010-3 variable funding note | Series 2010-3 variable funding note | Series 2010-3 variable funding note | Series 2010-3 variable funding note | Series 2010-3 variable funding note | Series 2010-3 variable funding note | CAD Series 2010-1 note (Canadian fleet financing) (terminated April 2011) | CAD Series 2010-1 note (Canadian fleet financing) (terminated April 2011) | CAD Series 2010-1 note (Canadian fleet financing) (terminated April 2011) | CAD Series 2010-1 note (Canadian fleet financing) (terminated April 2011) | CAD Series 2010-1 note (Canadian fleet financing) (terminated April 2011) | Non-vehicle debt | Term Loan | Senior Secured Credit Facilities | Senior Secured Credit Facilities | Senior Secured Credit Facilities | Senior Secured Credit Facilities | New Revolving Credit Facility | New Revolving Credit Facility | New Revolving Credit Facility | New Revolving Credit Facility | New Revolving Credit Facility | New Revolving Credit Facility | New Revolving Credit Facility | New Revolving Credit Facility | New Revolving Credit Facility | New Revolving Credit Facility | New Revolving Credit Facility | New Revolving Credit Facility | New Revolving Credit Facility | |||||||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Maximum | Maximum | Minimum | Minimum | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Before renewal | Commercial paper rate | Commercial paper rate | LIBOR | LIBOR | Eurodollar | Eurodollar | Maximum | Maximum | Minimum | Minimum | USD ($) | CAD | USD ($) | CAD | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | U.S. enhancement | General purpose enhancements | USD ($) | USD ($) | USD ($) | U.S. enhancement | General purpose enhancements | LIBOR | LIBOR | Maximum | Maximum | Maximum | Minimum | Minimum | Minimum | |||||||||||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | LIBOR | USD ($) | USD ($) | LIBOR | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt and other obligations | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt and other obligations, before discounts | $1,419,000,000 | $0 | $900,000,000 | $1,400,000,000 | $1,000,000,000 | $400,000,000 | $400,000,000 | $500,000,000 | $500,000,000 | $500,000,000 | $500,000,000 | $500,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discounts on asset-backed medium-term notes | -32,000 | -45,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total debt and other obligations | 17,394,200,000 | 15,014,474,000 | 10,907,849,000 | 1,399,955,000 | 1,481,137,000 | 1,397,243,000 | 1,399,955,000 | 1,249,118,000 | 899,968,000 | 1,399,955,000 | 1,000,000,000 | 500,000,000 | 500,000,000 | 200,000,000 | 510,000,000 | 49,118,000 | 148,125,000 | 148,125,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount of debt issued | 400,000,000 | 400,000,000 | 500,000,000 | 500,000,000 | 420,000,000 | 420,000,000 | 80,000,000 | 80,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate (as a percent) | 100.00% | 3.21% | 3.21% | 2.81% | 2.81% | 2.51% | 2.51% | 4.38% | 4.38% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repayment period | 6 months | 6 months | 6 months | 6 months | 3 months | 3 months | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leverage ratio | 3 | 2.25 | 2.25 | 3 | 3 | 3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest coverage ratio | 2 | 2 | 2 | 2 | 2 | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization period | 6 months | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate at the end of the period (as a percent) | 0.40% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payment for termination of swap agreement | 8,815,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount of debt terminated | 200,000,000 | 300,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Borrowing capacity | 1,950,000,000 | 600,000,000 | 600,000,000 | 450,000,000 | 231,300,000 | 450,000,000 | 450,000,000 | 450,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revolving period | 2 years | 364 days | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Spread (as a percent) | 1.30% | 3.50% | 3.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Variable rate basis | weighted-average commercial paper rate | weighted-average commercial paper rate | floating one-month LIBOR rate | floating one-month LIBOR | Eurodollar rate | Eurodollar | LIBOR | LIBOR | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Facility commitment fee rate (as a percent) | 0.80% | 0.80% | 0.50% | 0.50% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt repaid | 56,000,000 | 54,000,000 | 143,100,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Direct investments in the Canadian fleet | 63,500,000 | 64,900,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Letters of credit outstanding | 203,100,000 | 144,300,000 | 54,700,000 | 100,000 | 40,800,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Remaining available capacity | 1,125,200,000 | 2,267,200,000 | 32,300,000 | 409,100,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EBITDA requirement | 75,000,000 | 75,000,000 | 75,000,000 | 75,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted payments permitted, base amount | 300,000,000 | 300,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of cumulative adjusted net income added to the base amount | 50.00% | 50.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of cumulative adjusted net loss subtracted from the base amount | 100.00% | 100.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financing issuance costs paid | 14,800,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expected maturities of debt and other obligations outstanding | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2012 | 5,744,100 | [1] | 500,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 1,140,000,000 | 1,900,000 | 400,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2015 | $366,500,000 | $300,000 | $500,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[1] | Our short-term borrowings as of December 31, 2012 include, among other items, the amounts outstanding under the Senior ABL Facility, HVF U.S. Fleet Variable Funding Notes, RCFC U.S. Fleet Variable Funding Notes, Donlen GN II Variable Funding Notes, U.S. Fleet Financing Facility, European Revolving Credit Facility, European Securitization, Hertz-Sponsored Canadian Securitization, Dollar Thrifty-Sponsored Canadian Securitization, Australian Securitization, Brazilian Fleet Financing Facility and Capitalized Leases. These amounts are reflected as short-term borrowings, regardless of the facility maturity date, as these facilities are revolving in nature and/or the outstanding borrowings have maturities of three months or less. As of December 31, 2012, short-term borrowings had a weighted average interest rate of 1.8%. |
DERIVATIVE_FINANCIAL_INSTRUMEN7
DERIVATIVE FINANCIAL INSTRUMENTS - DOLLAR THRIFTY (Details) (Dollar Thrifty Automotive Group Inc., USD $) | 0 Months Ended | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 28, 2011 | Dec. 31, 2011 | Dec. 31, 2011 | Sep. 30, 2012 | Dec. 31, 2011 |
Asset-backed medium term notes | Interest rate swaps | Interest rate swaps | Interest rate caps | Interest rate caps | |
Asset-backed medium term notes | 2010-3 VFN | 2010-3 VFN | |||
Derivative financial instruments | |||||
Notional amount of interest rate derivatives | $500 | $600 | $600 | ||
Swap agreements termination fee | $8.80 | $8.80 |
DERIVATIVE_FINANCIAL_INSTRUMEN8
DERIVATIVE FINANCIAL INSTRUMENTS - DOLLAR THRIFTY (Details 2) (USD $) | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2010 | Dec. 31, 2010 | Dec. 31, 2010 | Sep. 30, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2010 |
Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | |||
Interest rate contracts | Interest rate contracts | Interest rate contracts | Derivatives designated as hedging instruments | Derivatives designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | |||
Prepaid expenses and other assets | Prepaid expenses and other assets | Accrued liabilities | Interest rate contracts | Interest rate contracts | Interest rate contracts | Interest rate contracts | Interest rate contracts | Interest rate contracts | |||
Prepaid expenses and other assets | Accrued liabilities | Prepaid expenses and other assets | Prepaid expenses and other assets | Prepaid expenses and other assets | Accrued liabilities | ||||||
Fair value of derivative financial instrument | |||||||||||
Asset Derivatives | $5,500,000 | $4,500,000 | $548,000 | $1,355,000 | $861,000 | $23,000 | $548,000 | $494,000 | |||
Liability Derivatives | $3,400,000 | $5,500,000 | $36,888,000 | $31,254,000 | $5,634,000 |
DERIVATIVE_FINANCIAL_INSTRUMEN9
DERIVATIVE FINANCIAL INSTRUMENTS - DOLLAR THRIFTY (Details 3) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||||
Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Sep. 30, 2011 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2010 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2012 | Sep. 30, 2011 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2011 | Dec. 31, 2010 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2012 | Sep. 30, 2011 | Dec. 31, 2011 | Dec. 31, 2010 | |
Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | ||||||||
Interest expense, net of interest income | Interest expense, net of interest income | Interest rate contracts | Interest rate contracts | Interest rate contracts | Interest rate contracts | Interest rate contracts | Interest rate contracts | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | ||||||||||
Cash flow hedge | Cash flow hedge | Interest expense, net of interest income | Interest expense, net of interest income | Interest expense, net of interest income | Interest expense, net of interest income | Interest expense, net of interest income | Interest expense, net of interest income | Net (increase) decrease in fair value of derivatives | Net (increase) decrease in fair value of derivatives | Interest rate contracts | Interest rate contracts | Interest rate contracts | Interest rate contracts | Interest rate contracts | Interest rate contracts | ||||||||||
Cash flow hedge | Cash flow hedge | Cash flow hedge | Cash flow hedge | Cash flow hedge | Cash flow hedge | Net (increase) decrease in fair value of derivatives | Net (increase) decrease in fair value of derivatives | Net (increase) decrease in fair value of derivatives | Net (increase) decrease in fair value of derivatives | Net (increase) decrease in fair value of derivatives | Net (increase) decrease in fair value of derivatives | ||||||||||||||
Gain (loss) on derivative financial instruments | |||||||||||||||||||||||||
Amount of (Gain) or Loss Recognized In Income on Derivative | $8,470,000 | $0 | $0 | ($3,244,000) | ($28,694,000) | ($40,000) | ($523,000) | ($525,000) | $3,367,000 | ($3,244,000) | ($28,694,000) | ||||||||||||||
Amount of Gain or (Loss) Recognized in OCI on Derivative (Effective Portion) | 0 | 0 | 0 | -4,139,000 | 0 | -12,573,000 | 12,358,000 | 10,259,000 | 5,543,000 | 3,591,000 | 10,288,000 | 10,259,000 | 5,543,000 | ||||||||||||
Amount of Gain or (Loss) Reclassified from AOCI in Income (Effective Portion) | -14,229,000 | -14,069,000 | -207,000 | -3,572,000 | -4,939,000 | -10,654,000 | -14,229,000 | -14,069,000 | |||||||||||||||||
Amount reclassified from AOCI related to discontinuance of cash flow hedge, additional disclosure | |||||||||||||||||||||||||
Ineffectiveness of interest rate contracts recorded in income | 0 | ||||||||||||||||||||||||
Amount reclassified from AOCI related to discontinuance of cash flow hedge | $400,000 | $400,000 |
FAIR_VALUE_MEASUREMENTS_DOLLAR6
FAIR VALUE MEASUREMENTS - DOLLAR THRIFTY (Details) (USD $) | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2011 | Sep. 30, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Sep. 30, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2011 | Dec. 31, 2010 | Sep. 30, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Dollar Thrifty Automotive Group Inc. | Significant Unobservable Inputs (Level 3) | Total Fair Value Assets (Liabilities) | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | |||
Dollar Thrifty Automotive Group Inc. | Quoted Prices in Active Markets for Identical Assets (Level 1) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Total Fair Value Assets (Liabilities) | Total Fair Value Assets (Liabilities) | Total Fair Value Assets (Liabilities) | |||||
Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | ||||||
Fair value of assets and liabilities | ||||||||||||||||
Derivative Assets | $5,500,000 | $4,500,000 | $23,000 | $548,000 | $1,355,000 | $23,000 | $548,000 | $1,355,000 | ||||||||
Derivative Liabilities | -3,400,000 | -5,500,000 | -36,888,000 | -36,888,000 | ||||||||||||
Marketable Securities (available for sale) | 132,000,000 | 169,000 | 169,000 | |||||||||||||
Deferred Compensation Plan Assets | 6,998,000 | 5,752,000 | 3,916,000 | 6,998,000 | 5,752,000 | 3,916,000 | ||||||||||
Total | 5,752,000 | 169,000 | 548,000 | -31,617,000 | 0 | 0 | 6,300,000 | -31,448,000 | ||||||||
Letters of credit | 203,100,000 | 0 | ||||||||||||||
Surety bonds | $47,400,000 | $0 |
FAIR_VALUE_MEASUREMENTS_DOLLAR7
FAIR VALUE MEASUREMENTS - DOLLAR THRIFTY (Details 2) (USD $) | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2010 | Dec. 31, 2010 | Dec. 31, 2010 | Dec. 31, 2010 | Dec. 31, 2010 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2012 | Dec. 31, 2010 | Dec. 31, 2010 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2012 | Dec. 31, 2010 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Vehicle debt and obligations-Canadian dollar denominated | Non-vehicle debt-Term Loan | Series 2006-1 notes | Series 2007-1 notes | Series 2010-1 VFN | Carrying Value | Carrying Value | Carrying Value | Carrying Value | Carrying Value | Carrying Value | Carrying Value | Carrying Value | Carrying Value | Carrying Value | Fair Value | Fair Value | Fair Value | Fair Value | Fair Value | Fair Value | Fair Value | Fair Value | Fair Value | Fair Value | |||
Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Vehicle debt and obligations-floating rates | Vehicle debt and obligations-floating rates | Vehicle debt and obligations-floating rates | Vehicle debt and obligations-fixed rates | Vehicle debt and obligations-fixed rates | Vehicle debt and obligations-Canadian dollar denominated | Vehicle debt and obligations-Canadian dollar denominated | Non-vehicle debt-Term Loan | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Vehicle debt and obligations-floating rates | Vehicle debt and obligations-floating rates | Vehicle debt and obligations-floating rates | Vehicle debt and obligations-fixed rates | Vehicle debt and obligations-fixed rates | Vehicle debt and obligations-Canadian dollar denominated | Vehicle debt and obligations-Canadian dollar denominated | Non-vehicle debt-Term Loan | |||||||
Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | ||||||||||||||||
Fair values of financial instruments | |||||||||||||||||||||||||||||||
Debt and other obligations | $17,394,200 | $15,014,474 | $10,907,849 | $1,481,137 | $1,399,955 | $1,397,243 | $49,118 | $148,125 | $500,000 | $500,000 | $200,000 | $1,481,169 | $1,400,000 | $510,000 | $500,000 | $1,200,000 | $900,000 | $900,000 | $71,169 | $49,118 | $148,125 | $1,507,988 | $1,395,112 | $510,000 | $495,820 | $1,178,875 | $926,819 | $899,292 | $71,169 | $49,118 | $146,459 |
EMPLOYEE_BENEFIT_PLANS_INCLUDI2
EMPLOYEE BENEFIT PLANS INCLUDING SHARE-BASED PAYMENT PLANS - DOLLAR THRIFTY (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 |
Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | ||||
Employee Benefit Plans | ||||||
Maximum percentage of employee's eligible compensation for which Company matches their contribution | 2.00% | |||||
Contribution expenses | $18.60 | $18 | $14.80 | $1.80 | $1.70 | $1.80 |
Liability for employee health claims included in accrued liabilities | 2.3 | 2 | ||||
Expenses for self-insured health claims | 15.4 | 15.8 | 20.2 | |||
Expenses related to bonus plan | $9.80 | $11.20 | $10 |
EMPLOYEE_BENEFIT_PLANS_INCLUDI3
EMPLOYEE BENEFIT PLANS INCLUDING SHARE-BASED PAYMENT PLANS - DOLLAR THRIFTY (Details 2) (Dollar Thrifty Automotive Group Inc., USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 |
Dollar Thrifty Automotive Group Inc. | |||
Deferred Compensation and Retirement Plans | |||
Percentage of executives' current annual base compensation received as contribution by key executive | 15.00% | ||
Expense related to plans for contributions made by the Company | $0.90 | $0.80 | $0.80 |
Balance in the deferred compensation and retirement plans which is reflected in accrued liabilities | $5.80 | $3.90 |
EMPLOYEE_BENEFIT_PLANS_INCLUDI4
EMPLOYEE BENEFIT PLANS INCLUDING SHARE-BASED PAYMENT PLANS - DOLLAR THRIFTY (Details 3) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 1 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||||||||
Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2010 | Feb. 28, 2008 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2012 | 31-May-13 | Nov. 30, 2012 | Mar. 31, 2012 | 30-May-13 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2012 | Sep. 30, 2011 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | 31-May-09 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2012 | Sep. 30, 2011 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | Sep. 30, 2011 | Sep. 30, 2012 | Dec. 31, 2011 | Feb. 29, 2012 | Dec. 31, 2011 | Mar. 31, 2011 | Dec. 31, 2010 | Mar. 31, 2010 | Mar. 31, 2009 | Sep. 30, 2012 | Sep. 30, 2011 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2011 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | Dec. 31, 2009 | Jan. 31, 2012 | Jan. 31, 2011 | Jan. 31, 2010 | Jan. 31, 2009 | 31-May-09 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | |
Option Rights | Option Rights | Option Rights | Option Rights | Restricted Stock Units | Restricted Stock Units | Restricted Stock Units | Restricted Stock Units | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | ||||||||
Maximum | Option Rights | Option Rights | Option Rights | Option Rights | Option Rights | Option Rights | Option Rights | Option Rights | Option Rights | Option Rights | Option Rights | Performance Shares | Performance Shares | Performance Shares | Performance Shares | Performance Shares | Performance Shares | Performance Shares | Performance Shares | Performance Shares | Performance Shares | Performance Shares | Performance Shares | Restricted Stock Units | Restricted Stock Units | Restricted Stock Units | Restricted Stock Units | Restricted Stock Units | Restricted Stock Units | Restricted Stock Units | Restricted Stock Units | Restricted Stock Units | Restricted Stock Units | Restricted Stock Units | Restricted Stock Units | Restricted Stock Units | Restricted Stock Units | ||||||||||||||||||||||
Maximum | Maximum | Maximum | Maximum | Non-employee and employee directors | Non-employee directors | Non-employee directors | Non-employee directors | Non-employee directors | Employee directors | Employee directors | Employee directors | Employee directors | |||||||||||||||||||||||||||||||||||||||||||||||
SHARE-BASED PAYMENT PLANS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of shares authorized for issuance | 32,700,000 | 2,726,312 | 2,726,312 | 2,083,550 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of shares available for future issuance | 1,168,546 | 1,168,546 | 247,517 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation costs recognized (in dollars) | $11,700,000 | $7,500,000 | $19,700,000 | $15,000,000 | $36,600,000 | $1,900,000 | $1,000,000 | $5,900,000 | $3,100,000 | $4,100,000 | $4,800,000 | $6,200,000 | $1,500,000 | ||||||||||||||||||||||||||||||||||||||||||||||
Income tax benefit recognized in the statements of income for share-based compensation payments (in dollars) | 4,500,000 | 2,900,000 | 7,600,000 | 5,800,000 | 14,200,000 | 600,000 | 300,000 | 2,200,000 | 1,200,000 | 1,600,000 | 1,900,000 | 2,700,000 | |||||||||||||||||||||||||||||||||||||||||||||||
Option term | 10 years | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of awards that may be granted under the plan during any year to any participant (in shares) | 285,000 | 285,000 | 160,000 | 160,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assumptions used to calculate compensation expense relating to the stock option awards granted | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted-average expected life of the awards | 3 years | 6 years 3 months | 6 years 3 months | 10 years | 5 years | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expected price volatility factor (as a percent) | 81500.00% | 36700.00% | 36100.00% | 80.24% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk-free interest rate (as a percent) | 400.00% | 2560.00% | 2.36% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividend payments | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Additional disclosure | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted average grant-date fair value of options issued (in dollars per share) | $14,620 | $5,930 | $4,000 | $4.44 | $4.44 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Vesting period | 3 years | 3 years | 3 years | 3 years | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Vesting percentage in first fiscal year | 20.00% | 25.00% | 20.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Vesting percentage in second fiscal year | 20.00% | 25.00% | 25.00% | 75.00% | 20.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Vesting percentage in third fiscal year | 60.00% | 75.00% | 75.00% | 60.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Grant-date fair value of options vested (in dollars) | 9,000,000 | 17,400,000 | 21,600,000 | 1,600,000 | 1,600,000 | 4,000,000 | 900,000 | 200,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Unrecognized expenses (in dollars) | 0 | 0 | 200,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding at the beginning of the period (in shares) | 1,575,000 | 2,277,000 | 2,277,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exercised (in shares) | -297,000 | -672,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Canceled (Forfeited/Expired) (in shares) | -30,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding at the end of the period (in shares) | 1,278,000 | 1,278,000 | 1,575,000 | 2,277,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fully vested and exercisable options at the end of the period (in shares) | 1,278,000 | 1,278,000 | 917,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Options expected to vest at the end of the period (in shares) | 658,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted-Average Exercise Price | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding at the beginning of the period (in dollars per share) | $5.11 | $5.73 | $5.73 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exercised (in dollars per share) | $5.70 | $7.10 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Canceled (Forfeited/Expired) (in dollars per share) | $7.62 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding at the end of the period (in dollars per share) | $4.97 | $4.97 | $5.11 | $5.73 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fully vested and exercisable options at the end of the period (in dollars per share) | $4.97 | $4.97 | $5.46 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Options expected to vest at the end of the period (in dollars per share) | $4.63 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted-Average Remaining Contractual Term | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding at the beginning of the period | 6 years 4 months 6 days | 6 years 10 months 20 days | 7 years 7 months 10 days | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding at the end of the period | 6 years 4 months 6 days | 6 years 10 months 20 days | 7 years 7 months 10 days | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fully vested and exercisable options at the end of the period | 6 years 4 months 6 days | 6 years 7 months 28 days | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Options expected to vest at the end of the period | 7 years 2 months 23 days | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Aggregate Intrinsic Value | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding at the beginning of the period (in dollars) | 102,579,000 | 94,545,000 | 94,545,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding at the end of the period (in dollars) | 104,695,000 | 104,695,000 | 102,579,000 | 94,545,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fully vested and exercisable options at the end of the period (in dollars) | 104,695,000 | 104,695,000 | 59,398,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Options expected to vest at the end of the period (in dollars) | 43,181,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Additional disclosure | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total intrinsic value of options exercised (in dollars) | 15,100,000 | 15,000,000 | 8,100,000 | 15,700,000 | 100,000 | 23,000,000 | 6,300,000 | 38,100,000 | 3,800,000 | 600,000 | |||||||||||||||||||||||||||||||||||||||||||||||||
Cash received for non-qualified option rights exercised (in dollars) | 900,000 | 1,700,000 | 2,900,000 | 4,800,000 | 3,000,000 | 2,300,000 | 100,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Additional disclosure | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Grant date fair value of units granted (in dollars per share) | $76.17 | $69.58 | $47.13 | $76.17 | $69.58 | $73.42 | $48.24 | $2.33 | $73.42 | $48.24 | $25.28 | $1.23 | $4.44 | ||||||||||||||||||||||||||||||||||||||||||||||
Number of units earned based upon the level of corporate performance against a pre-established target (in shares) | 122,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares initially granted as a base grant that vested during the period | 73,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares vested as percentage of the target award | 200.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares vested | 146,000 | 36,000 | 64,000 | 4,000 | 34,000 | 39,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Intrinsic value of shares vested (in dollars) | 3,500,000 | 1,700,000 | 2,500,000 | 300,000 | 7,600,000 | 7,600,000 | 1,100,000 | 100,000 | 2,700,000 | 1,100,000 | 2,100,000 | 1,500,000 | 500,000 | ||||||||||||||||||||||||||||||||||||||||||||||
Number of shares withheld for the payment of taxes owed by the recipients | 52,000 | 12,000 | 0 | 5,616 | 6,991 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nonvested at the beginning of the period (in shares) | 262,000 | 238,000 | 238,000 | 34,000 | 64,000 | 64,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Granted (in shares) | 166,576 | 24,713 | 543,880 | 29,135 | 29,000 | 140,000 | 7,000 | 9,000 | 6,815 | 9,330 | 17,800 | 95,812 | 50,000 | 30,057 | 30,053 | 20,053 | |||||||||||||||||||||||||||||||||||||||||||
Vested (in shares) | -146,000 | -36,000 | -64,000 | -4,000 | -34,000 | -39,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Forfeited (in shares) | -7,000 | -43,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nonvested at the end of the period (in shares) | 262,000 | 238,000 | 280,000 | 262,000 | 238,000 | 7,000 | 34,000 | 64,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted-Average Grant-Date Fair Value | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nonvested at the beginning of the period (in dollars per share) | $23.80 | $59.11 | $39.07 | $39.07 | $5.41 | $4.55 | $4.55 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Granted (in dollars per share) | $76.17 | $69.58 | $47.13 | $76.17 | $69.58 | $73.42 | $48.24 | $2.33 | $73.42 | $48.24 | $25.28 | $1.23 | $4.44 | ||||||||||||||||||||||||||||||||||||||||||||||
Vested (in dollars per share) | $52.44 | $27.95 | $5.41 | $14.17 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Forfeited (in dollars per share) | $59.79 | $35.02 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nonvested at the end of the period (in dollars per share) | $13.15 | $23.80 | $59.11 | $39.07 | $60.94 | $59.11 | $39.07 | $73.42 | $5.41 | $4.55 | |||||||||||||||||||||||||||||||||||||||||||||||||
Additional information | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Estimated compensation cost that were not yet recognized (in dollars) | 11,000,000 | 8,000,000 | 11,000,000 | 100,000 | 100,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted-average period over which estimated compensation cost is expected to be recognized | 1 year 8 months 13 days | 1 year 4 months 26 days | 1 year 4 months 24 days | 2 years 2 months 12 days | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intrinsic value of the nonvested awards (in dollars) | 24,400,000 | 18,400,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value of shares vested (in dollars) | $600,000 | $600,000 | $200,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of shares that had the right to receive cash payments at the settlement date price which vested | 56,910 |
INCOME_TAXES_DOLLAR_THRIFTY_De1
INCOME TAXES - DOLLAR THRIFTY (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||
In Thousands, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2012 | Sep. 30, 2011 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | Dec. 31, 2011 | Dec. 31, 2010 |
Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | ||||||||
Canada | Canada | |||||||||||||||
Current: | ||||||||||||||||
Federal | $20,100 | $10,300 | $10,200 | $6,019 | $79 | $4,867 | ||||||||||
State and local | 39,100 | 28,500 | 1,500 | 8,184 | 12,535 | 13,417 | ||||||||||
Foreign | 32,300 | 30,600 | 41,500 | 837 | 631 | 848 | ||||||||||
Current Income Tax Expense (Benefit) | 91,500 | 69,400 | 53,200 | 15,040 | 13,245 | 19,132 | ||||||||||
Deferred: | ||||||||||||||||
Federal | 141,900 | 82,400 | -18,600 | 78,316 | 70,968 | 19,365 | ||||||||||
State and local | -18,200 | -4,800 | -2,600 | 8,336 | 5,989 | -2,511 | ||||||||||
Deferred Income Tax Expense (Benefit) | 104,100 | 40,900 | 135,600 | 74,400 | -19,877 | 49,369 | 59,214 | 86,652 | 76,957 | 16,854 | ||||||
Provision for taxes on income | 95,800 | 70,700 | 155,300 | 94,900 | 227,073 | 143,846 | 33,322 | 33,469 | 39,265 | 89,516 | 80,594 | 101,692 | 90,202 | 35,986 | 0 | |
Deferred tax assets: | ||||||||||||||||
Intangible asset amortization | 32,744 | 37,176 | ||||||||||||||
Vehicle insurance reserves | 30,183 | 38,456 | ||||||||||||||
Other accrued liabilities | 27,450 | 33,621 | ||||||||||||||
Interest rate swap | 15,267 | |||||||||||||||
AMT credit carryforward | 7,252 | |||||||||||||||
Canadian NOL carryforwards | 16,561 | 17,650 | ||||||||||||||
Other Canadian temporary differences | 6,278 | 6,462 | ||||||||||||||
Federal and state NOL carryforwards | 50,993 | 5,723 | ||||||||||||||
Allowance for doubtful accounts and notes receivable | 1,036 | 1,729 | ||||||||||||||
Canadian depreciation | 1,834 | 1,862 | ||||||||||||||
Deferred Tax Assets, Gross | 2,103,800 | 2,209,500 | 167,079 | 165,198 | ||||||||||||
Valuation allowance | -226,400 | -186,700 | -24,705 | -26,042 | ||||||||||||
Deferred Tax Assets, Net of Valuation Allowance | 1,877,400 | 2,022,800 | 142,374 | 139,156 | ||||||||||||
Deferred tax liabilities: | ||||||||||||||||
Depreciation | 3,081,400 | 2,742,300 | 484,942 | 381,078 | ||||||||||||
Other | 394 | 1,008 | ||||||||||||||
Deferred Tax Liabilities, Gross | $2,786,800 | $2,786,800 | $4,558,500 | $3,684,700 | $485,336 | $382,086 |
INCOME_TAXES_DOLLAR_THRIFTY_De2
INCOME TAXES - DOLLAR THRIFTY (Details 2) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 16 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||||
Jun. 30, 2013 | Jun. 30, 2012 | Mar. 31, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2012 | Sep. 30, 2010 | Sep. 30, 2012 | Sep. 30, 2011 | Mar. 31, 2011 | Sep. 30, 2012 | Sep. 30, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | Dec. 31, 2011 | Sep. 30, 2012 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2010 | |
Canada | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | |||||||||
DTG Canada | U.S. | Canada | Canada | Canada | State | State | |||||||||||||||||||||
DTG Canada | |||||||||||||||||||||||||||
Income taxes | |||||||||||||||||||||||||||
Deferred tax expense | $104,100,000 | $40,900,000 | $135,600,000 | $74,400,000 | ($19,877,000) | $49,369,000 | $59,214,000 | $86,652,000 | $76,957,000 | $16,854,000 | |||||||||||||||||
Other comprehensive income that relates to the interest rate swap and foreign currency translation | 13,300,000 | ||||||||||||||||||||||||||
INCOME TAX EXPENSE | 95,800,000 | 70,700,000 | 155,300,000 | 94,900,000 | 227,073,000 | 143,846,000 | 33,322,000 | 33,469,000 | 39,265,000 | 89,516,000 | 80,594,000 | 101,692,000 | 90,202,000 | 35,986,000 | 0 | 0 | 0 | ||||||||||
Percentage of bonus depreciation allowances for assets placed in service under Small Business Act | 50.00% | ||||||||||||||||||||||||||
Percentage of bonus depreciation allowances for assets placed in service under Tax Relief Act | 50.00% | 100.00% | |||||||||||||||||||||||||
Federal tax refunds received | 50,000,000 | 8,800,000 | |||||||||||||||||||||||||
NOL carryfowards | 166,300,000 | 66,200,000 | |||||||||||||||||||||||||
Valuation allowance of NOLs | 200,600,000 | 24,600,000 | 25,900,000 | 100,000 | 100,000 | ||||||||||||||||||||||
Amount | |||||||||||||||||||||||||||
Tax expense computed at the maximum U.S. statutory rate | 91,435,000 | 77,496,000 | 28,353,000 | ||||||||||||||||||||||||
Difference resulting from: | |||||||||||||||||||||||||||
State and local taxes, net of federal income tax benefit | 11,132,000 | 12,056,000 | 7,007,000 | ||||||||||||||||||||||||
Foreign (income) losses | -623,000 | 1,522,000 | 1,111,000 | ||||||||||||||||||||||||
Foreign taxes | 586,000 | 416,000 | 633,000 | ||||||||||||||||||||||||
Other | -838,000 | -1,288,000 | -1,118,000 | ||||||||||||||||||||||||
Total | $101,692,000 | $90,202,000 | $35,986,000 | ||||||||||||||||||||||||
Percent | |||||||||||||||||||||||||||
Tax expense computed at the maximum U.S. statutory rate (as a percent) | 35.00% | 35.00% | 35.00% | 35.00% | 35.00% | 35.00% | |||||||||||||||||||||
Difference resulting from: | |||||||||||||||||||||||||||
State and local taxes, net of federal income tax benefit (as a percent) | 2.90% | 3.20% | -5.20% | 4.20% | 5.40% | 8.60% | |||||||||||||||||||||
Foreign (income) losses (as a percent) | -0.20% | 0.70% | 1.40% | ||||||||||||||||||||||||
Foreign taxes (as a percent) | -3.20% | -3.30% | -32.10% | 0.20% | 0.20% | 0.80% | |||||||||||||||||||||
Other (as a percent) | 0.20% | 2.40% | 1.80% | -0.30% | -0.60% | -1.40% | |||||||||||||||||||||
Effective Tax Rate (as a percent) | 42.40% | 41.20% | 64.30% | 49.80% | 45.20% | 38.50% | 103.10% | 37.60% | 37.10% | 38.10% | 39.10% | 38.90% | 40.70% | 44.40% |
STOCKHOLDERS_EQUITY_DOLLAR_THR5
STOCKHOLDERS' EQUITY - DOLLAR THRIFTY (Details) (USD $) | 1 Months Ended | 0 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | 0 Months Ended | |||||||||||||||||||||||||||
Mar. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2012 | Dec. 31, 2011 | Feb. 17, 2012 | Sep. 26, 2011 | 18-May-11 | Sep. 30, 2011 | Nov. 30, 2009 | Oct. 31, 2009 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2011 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | 24-May-11 | Sep. 30, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | Sep. 30, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | Feb. 07, 2012 | Nov. 03, 2011 | Nov. 30, 2011 | Dec. 31, 2011 | Dec. 31, 2011 | Feb. 24, 2011 | 18-May-11 | |
Interest Rate SWAP | Interest Rate SWAP | Interest Rate SWAP | Interest Rate SWAP | Foreign Currency Translation | Foreign Currency Translation | Foreign Currency Translation | Foreign Currency Translation | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | ||||||
Interest Rate SWAP | Interest Rate SWAP | Interest Rate SWAP | Interest Rate SWAP | Foreign Currency Translation | Foreign Currency Translation | Foreign Currency Translation | Foreign Currency Translation | Forward stock repurchase plan | Forward stock repurchase plan | Forward stock repurchase plan | Forward stock repurchase plan | Senior Secured Credit Facilities | Maximum | Minimum | |||||||||||||||||||||||||||
Share Repurchase Program | |||||||||||||||||||||||||||||||||||||||||
Amount authorized under share repurchase program | $400,000,000 | $400,000,000 | $100,000,000 | $100,000,000 | $100,000,000 | ||||||||||||||||||||||||||||||||||||
Amount of share repurchases permitted under terms of debt instrument | 280,000,000 | ||||||||||||||||||||||||||||||||||||||||
Shares of common stock acquired | 23,200,000 | 22,494 | 1,821,137 | 1,451,193 | 0 | ||||||||||||||||||||||||||||||||||||
Average price per share of common stock acquired (in dollars per share) | $79.74 | $70.91 | $68.91 | ||||||||||||||||||||||||||||||||||||||
Shareholder Rights Plan | |||||||||||||||||||||||||||||||||||||||||
Threshold percentage of Company's common stock owned by a person or group either through new acquisition or tender offer or before acquisition of additional shares, without Company's approval | 20.00% | ||||||||||||||||||||||||||||||||||||||||
Percentage of discount at which the holders of rights, other than the holders triggering the exercise of rights, can purchase the shares of common stock | 50.00% | ||||||||||||||||||||||||||||||||||||||||
Period for which rights plan has been extended | 1 year | ||||||||||||||||||||||||||||||||||||||||
Public Stock Offering | |||||||||||||||||||||||||||||||||||||||||
Shares of common stock agreed to be issued | 5,750,000 | ||||||||||||||||||||||||||||||||||||||||
Common stock, par value (in dollars per share) | $0.01 | $0.01 | $0.01 | $0.01 | $0.01 | $0.01 | $0.01 | $0.01 | $0.01 | ||||||||||||||||||||||||||||||||
Price per share of shares issued in public offering (in dollars per share) | $19.25 | ||||||||||||||||||||||||||||||||||||||||
Number of shares which underwriters can purchase under the option granted | 862,500 | ||||||||||||||||||||||||||||||||||||||||
Number of shares issued | 6,612,500 | ||||||||||||||||||||||||||||||||||||||||
Net proceeds from issuance of shares of common stock | 120,600,000 | 1,694,000 | 2,921,000 | 4,774,000 | 2,988,000 | 129,583,000 | |||||||||||||||||||||||||||||||||||
Underwriting discounts, commissions and expenses pertaining to stock issuance | 6,600,000 | 6,635,000 | |||||||||||||||||||||||||||||||||||||||
Components of accumulated other comprehensive income (loss) | |||||||||||||||||||||||||||||||||||||||||
Balance at the beginning of the period | -73,300,000 | -26,892,000 | -38,000,000 | -28,414,000 | -19,400,000 | -19,400,000 | -19,400,000 | -19,400,000 | 48,700,000 | 102,700,000 | 74,800,000 | 91,300,000 | -7,617,000 | -12,329,000 | -12,329,000 | -18,374,000 | -29,388,000 | -8,488,000 | -18,747,000 | -24,290,000 | -32,952,000 | 871,000 | 6,418,000 | 5,916,000 | 3,564,000 | ||||||||||||||||
Adjustment during the period | 8,488,000 | 10,259,000 | 5,543,000 | 8,662,000 | 5,491,000 | -5,547,000 | 502,000 | 2,352,000 | |||||||||||||||||||||||||||||||||
Balance at the end of the period | ($73,300,000) | ($26,892,000) | ($38,000,000) | ($28,414,000) | ($19,400,000) | ($19,400,000) | ($19,400,000) | ($19,400,000) | $48,700,000 | $102,700,000 | $74,800,000 | $91,300,000 | $6,362,000 | $6,362,000 | ($7,617,000) | ($12,329,000) | ($18,374,000) | ($8,488,000) | ($18,747,000) | ($24,290,000) | $6,362,000 | $871,000 | $6,418,000 | $5,916,000 |
COMMITMENTS_AND_CONTINGENCIES_4
COMMITMENTS AND CONTINGENCIES - DOLLAR THRIFTY (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||||||
In Thousands, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | Dec. 31, 2011 |
Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | ||||||||
Concession agreements and operating leases | Concession agreements and operating leases | Concession agreements and operating leases | Operating leases | Operating leases | Operating leases | Concession agreements | Concession agreements | Concession agreements | Maximum | ||||||||
Operating leases | |||||||||||||||||
Concessions and Operating Leases | |||||||||||||||||
Lease period of premises under operating leases | 30 years | ||||||||||||||||
Rent | $18,000 | $21,500 | $33,300 | $44,600 | $79,800 | $96,100 | $78,200 | $48,682 | $47,915 | $49,543 | |||||||
Concession expenses: | |||||||||||||||||
Minimum fees | 107,095 | 102,080 | 101,938 | ||||||||||||||
Contingent fees | 27,144 | 31,711 | 32,263 | ||||||||||||||
Total | 182,921 | 181,706 | 183,744 | ||||||||||||||
Less sublease rental income | -498 | -574 | -785 | ||||||||||||||
Total | 182,423 | 181,132 | 182,959 | ||||||||||||||
Future minimum rentals and fees under noncancelable operating leases and the entity's obligations for minimum airport concession fees | |||||||||||||||||
2012 | 138,780 | 40,429 | 98,351 | ||||||||||||||
2013 | 118,460 | 32,866 | 85,594 | ||||||||||||||
2014 | 87,443 | 25,323 | 62,120 | ||||||||||||||
2015 | 64,129 | 20,221 | 43,908 | ||||||||||||||
2016 | 54,378 | 17,290 | 37,088 | ||||||||||||||
Thereafter | 179,104 | 48,333 | 130,771 | ||||||||||||||
Total | 642,294 | 184,462 | 457,832 | ||||||||||||||
Less sublease rental income | -895 | -895 | |||||||||||||||
Total | $641,399 | $183,567 | $457,832 |
COMMITMENTS_AND_CONTINGENCIES_5
COMMITMENTS AND CONTINGENCIES - DOLLAR THRIFTY (Details 2) (Dollar Thrifty Automotive Group Inc., USD $) | 9 Months Ended | 12 Months Ended | |||||
Sep. 30, 2012 | Sep. 30, 2011 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | |
Maximum | Maximum | Maximum | |||||
Contingency for vehicle insurance reserves | |||||||
Retained risk of loss per occurrence | $7,500,000 | $7,500,000 | $7,500,000 | ||||
Favorable insurance reserve adjustments | 2,500,000 | 10,600,000 | 32,200,000 | 13,400,000 | |||
Assumed risk free rate (as a percent) | 0.40% | 1.00% | |||||
Estimated future payments of vehicle insurance reserves | |||||||
2012 | 21,220,000 | ||||||
2013 | 15,314,000 | ||||||
2014 | 7,037,000 | ||||||
2015 | 4,617,000 | ||||||
2016 | 2,995,000 | ||||||
Thereafter | 3,508,000 | ||||||
Aggregate undiscounted public liability and property damage | 54,691,000 | ||||||
Effect of discounting | -375,000 | -1,300,000 | |||||
Public liability and property damage, net of discount | 54,316,000 | ||||||
Supplemental liability insurance | 32,199,000 | ||||||
Total vehicle insurance reserves | $82,358,000 | $86,515,000 | $107,720,000 |
COMMITMENTS_AND_CONTINGENCIES_6
COMMITMENTS AND CONTINGENCIES - DOLLAR THRIFTY (Details 3) (Dollar Thrifty Automotive Group Inc., USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | |||
Dec. 31, 2011 | Dec. 31, 2010 | Apr. 04, 2011 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2011 | |
Service Agreement | Telecommunications contract | Software and hardware maintenance agreements | Colorado Consumer Protection Act | |||
item | ||||||
Contingencies | ||||||
Number of class action lawsuits in which the entity is defendant | 1 | |||||
Agreement term | 3 years 6 months | |||||
Required annual payments | ||||||
2012 | $20,000,000 | $1,200,000 | $2,100,000 | |||
2013 | 20,000,000 | 1,500,000 | ||||
2014 | 10,000,000 | |||||
Letters of credit which are primarily used to support insurance programs and airport concession obligations | 4,000,000 | 5,500,000 | ||||
Guarantees obligations on behalf of franchisees | 0 | |||||
Outstanding vehicle purchase commitments | $1,300,000,000 | |||||
Period of vehicle purchase commitments | 12 months |
BUSINESS_SEGMENTS_DOLLAR_THRIF2
BUSINESS SEGMENTS - DOLLAR THRIFTY (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||
In Thousands, unless otherwise specified | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Dec. 31, 2010 | Sep. 30, 2010 | Jun. 30, 2010 | Mar. 31, 2010 | Sep. 30, 2012 | Sep. 30, 2011 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 |
United States | United States | United States | Foreign countries | Foreign countries | Foreign countries | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | |||||||||||||||
United States | United States | United States | Foreign countries | Foreign countries | Foreign countries | |||||||||||||||||||||||||||||||||||
BUSINESS SEGMENTS | ||||||||||||||||||||||||||||||||||||||||
Revenues | $2,714,600 | $2,318,600 | $2,516,200 | $2,225,100 | $1,960,900 | $2,013,800 | $2,432,300 | $2,072,300 | $1,780,000 | $5,151,200 | $4,186,100 | $9,020,807 | $8,298,380 | $7,562,534 | $6,313,400 | $5,413,300 | $4,993,700 | $2,707,400 | $2,885,100 | $2,568,800 | $460,590 | $353,730 | $451,722 | $395,129 | $348,347 | $349,059 | $443,544 | $396,227 | $348,330 | $1,212,250 | $1,195,198 | $1,548,928 | $1,537,160 | $1,546,249 | $1,466,186 | $1,455,958 | $1,466,508 | $82,742 | $81,202 | $79,741 |
Long-lived assets | $1,465,600 | $1,436,386 | $1,251,854 | $1,465,600 | $1,436,386 | $1,251,854 | $1,226,100 | $1,036,700 | $210,300 | $215,200 | $77,887 | $84,278 | $90,228 | $77,887 | $84,278 | $90,228 | $96,198 | $82,588 | $88,433 | $94,606 | $1,690 | $1,795 | $1,592 |
SELECTED_QUARTERLY_FINANCIAL_D2
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) - DOLLAR THRIFTY (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Dec. 31, 2010 | Sep. 30, 2010 | Jun. 30, 2010 | Mar. 31, 2010 | Sep. 30, 2012 | Sep. 30, 2011 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | |
Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | |||||||||||||||
Quarterly operating results | ||||||||||||||||||||||||||||
Revenues | $2,714,600,000 | $2,318,600,000 | $2,516,200,000 | $2,225,100,000 | $1,960,900,000 | $2,013,800,000 | $2,432,300,000 | $2,072,300,000 | $1,780,000,000 | $5,151,200,000 | $4,186,100,000 | $9,020,807,000 | $8,298,380,000 | $7,562,534,000 | $460,590,000 | $353,730,000 | $451,722,000 | $395,129,000 | $348,347,000 | $349,059,000 | $443,544,000 | $396,227,000 | $348,330,000 | $1,212,250,000 | $1,195,198,000 | $1,548,928,000 | $1,537,160,000 | $1,546,249,000 |
Operating income | 73,685,000 | 126,036,000 | 88,818,000 | 46,921,000 | 43,314,000 | 94,246,000 | 84,436,000 | 61,088,000 | 335,460,000 | 283,084,000 | ||||||||||||||||||
Net income | 129,900,000 | -28,300,000 | 251,300,000 | 101,000,000 | -48,200,000 | 58,800,000 | 212,600,000 | 62,100,000 | -123,000,000 | 156,400,000 | 52,700,000 | 275,779,000 | 210,489,000 | -18,383,000 | 55,500,000 | 33,901,000 | 66,621,000 | 42,505,000 | 16,523,000 | 12,496,000 | 49,165,000 | 42,263,000 | 27,292,000 | 145,298,000 | 125,649,000 | 159,550,000 | 131,216,000 | 45,022,000 |
Earnings per share: | ||||||||||||||||||||||||||||
Basic (in dollars per share) | $1.99 | $1.16 | $2.30 | $1.47 | $0.57 | $0.44 | $1.72 | $1.48 | $0.96 | $5.15 | $4.35 | $5.51 | $4.58 | $1.98 | ||||||||||||||
Diluted (in dollars per share) | $1.91 | $1.08 | $2.13 | $1.36 | $0.53 | $0.41 | $1.62 | $1.40 | $0.91 | $4.94 | $4.03 | $5.11 | $4.34 | $1.88 | ||||||||||||||
Additional information | ||||||||||||||||||||||||||||
Favorable changes in vehicle insurance reserve | 21,200,000 | 10,600,000 | 13,400,000 | -4,157,000 | 1,021,000 | -21,205,000 | -864,000 | -1,726,000 | ||||||||||||||||||||
Merger-related expenses | 1,100,000 | 3,500,000 | 2,100,000 | 11,900,000 | 6,900,000 | 1,700,000 | ||||||||||||||||||||||
Pretax impairment charges related to software | $1,100,000 |
PROPOSED_ACQUISITION_AND_RELAT3
PROPOSED ACQUISITION AND RELATED MATTERS - DOLLAR THRIFTY (Details) (USD $) | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2012 | Dec. 31, 2011 | 24-May-11 | Dec. 31, 2010 | Oct. 31, 2009 | 24-May-11 |
Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | ||||
HDTMS, Inc. | |||||||||
PROPOSED ACQUISITION AND RELATED MATTERS | |||||||||
Amount in cash per share in exchange of each share (in dollars per share) | $57.60 | ||||||||
Consideration in shares | 0.8546 | ||||||||
Common stock, par value (in dollars per share) | $0.01 | $0.01 | $0.01 | $0.01 | $0.01 | $0.01 | $0.01 | $0.01 |
Recovered_Sheet10
GUARANTOR AND NON-GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - DOLLAR THRIFTY (Details) (USD $) | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||||||||||
In Thousands, unless otherwise specified | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | Dec. 31, 2008 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Dec. 31, 2010 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Dec. 31, 2010 | Sep. 30, 2012 | Dec. 31, 2011 |
Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | ||||||||
Guarantor Subsidiaries | Guarantor Subsidiaries | Guarantor Subsidiaries | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Eliminations | ||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | |||||||||||||||||||||||
Parent's ownership percentage in Guarantor Subsidiaries | 100.00% | 100.00% | 100.00% | ||||||||||||||||||||
ASSETS | |||||||||||||||||||||||
Cash and cash equivalents | $483,000 | $533,235 | $586,000 | $586,000 | $931,208 | $2,374,006 | $985,467 | $456,869 | $508,648 | $499,473 | $463,153 | $400,404 | $229,636 | $402,243 | $446,239 | $465,610 | $450,007 | $54,626 | $62,409 | $33,863 | $13,146 | ||
Restricted cash and investments | 250,144 | 353,265 | 277,407 | 6,185 | 1,355 | 243,959 | 351,910 | ||||||||||||||||
Receivables, net | 1,656,000 | 1,886,596 | 1,616,382 | 128,217 | 95,360 | 69,456 | 86,835 | 86,184 | 69,618 | 34,294 | -28,236 | -25,118 | |||||||||||
Intercompany | 800 | 12,809 | 0 | -92,323 | -100,436 | 147,270 | 154,999 | -54,947 | -54,563 | ||||||||||||||
Prepaid expenses and other assets | 763,200 | 461,502 | 416,134 | 71,980 | 65,959 | 67,482 | 59,770 | 49,163 | 13,409 | 20,503 | -1,199 | -3,707 | |||||||||||
Revenue-earning vehicles, net | 15,706,000 | 12,908,336 | 10,105,409 | 1,875,607 | 1,467,835 | 1,341,822 | 24,629 | 33,057 | 1,850,978 | 1,434,778 | |||||||||||||
Property and equipment, net | 1,465,600 | 1,436,386 | 1,251,854 | 77,887 | 84,278 | 90,228 | 96,198 | 76,208 | 82,588 | 1,679 | 1,690 | ||||||||||||
Investment in subsidiaries | 0 | 0 | 0 | 825,502 | 581,003 | -825,502 | -581,003 | ||||||||||||||||
Income taxes receivable | 4,453 | 18,786 | 65,803 | 4,364 | 18,702 | 89 | 84 | ||||||||||||||||
Software, net | 620,300 | 686,500 | 354,000 | 19,438 | 21,535 | 24,177 | 19,438 | 21,535 | |||||||||||||||
Total assets | 25,930,900 | 23,290,209 | 17,667,332 | 2,884,595 | 2,615,666 | 2,499,528 | 1,412,851 | 1,219,390 | 2,381,628 | 2,060,667 | -909,884 | -664,391 | |||||||||||
LIABILITIES: | |||||||||||||||||||||||
Accounts payable | 1,484,500 | 999,061 | 897,489 | 47,768 | 54,377 | 45,483 | 44,288 | 45,827 | 3,484 | 8,573 | -3 | -23 | |||||||||||
Accrued liabilities | 1,182,300 | 1,178,460 | 1,126,338 | 136,567 | 124,185 | 167,545 | 161,841 | 148,820 | 4,157 | 4,167 | -29,432 | -28,802 | |||||||||||
Deferred income taxes | 2,681,140 | 1,661,872 | 392,524 | 342,962 | 242,930 | 391,431 | 341,408 | 1,093 | 1,554 | ||||||||||||||
Vehicle insurance reserves | 82,358 | 86,515 | 107,720 | 71,050 | 75,663 | 11,308 | 10,852 | ||||||||||||||||
Debt and other obligations | 17,394,200 | 15,014,474 | 10,907,849 | 1,481,137 | 1,399,955 | 1,397,243 | 1,536,084 | 1,454,518 | -54,947 | -54,563 | |||||||||||||
Total liabilities | 23,358,900 | 20,372,681 | 15,038,478 | 2,140,354 | 2,007,994 | 1,960,921 | 668,610 | 611,718 | 1,556,126 | 1,479,664 | -84,382 | -83,388 | |||||||||||
COMMITMENTS AND CONTINGENCIES | |||||||||||||||||||||||
EQUITY: | 2,572,000 | 2,917,509 | 2,628,835 | 744,241 | 607,672 | 538,607 | 393,914 | 208,420 | 744,241 | 607,672 | 825,502 | 581,003 | -825,502 | -581,003 | |||||||||
Total liabilities and equity | $25,930,900 | $23,290,209 | $17,667,332 | $2,884,595 | $2,615,666 | $2,499,528 | $1,412,851 | $1,219,390 | $2,381,628 | $2,060,667 | ($909,884) | ($664,391) |
Recovered_Sheet11
GUARANTOR AND NON-GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - DOLLAR THRIFTY (Details 2) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||||||||||||
In Thousands, unless otherwise specified | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Dec. 31, 2010 | Sep. 30, 2010 | Jun. 30, 2010 | Mar. 31, 2010 | Sep. 30, 2012 | Sep. 30, 2011 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | Sep. 30, 2012 | Sep. 30, 2011 | Dec. 31, 2011 | Sep. 30, 2012 | Sep. 30, 2011 | Dec. 31, 2011 | Sep. 30, 2012 | Sep. 30, 2011 | Dec. 31, 2011 |
Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | |||||||||||||||
Guarantor Subsidiaries | Guarantor Subsidiaries | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Eliminations | Eliminations | |||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | |||||||||||||||||||||||||||||||||||||
Total revenues | $2,714,600 | $2,318,600 | $2,516,200 | $2,225,100 | $1,960,900 | $2,013,800 | $2,432,300 | $2,072,300 | $1,780,000 | $5,151,200 | $4,186,100 | $9,020,807 | $8,298,380 | $7,562,534 | $460,590 | $353,730 | $451,722 | $395,129 | $348,347 | $349,059 | $443,544 | $396,227 | $348,330 | $1,212,250 | $1,195,198 | $1,548,928 | $1,537,160 | $1,546,249 | $1,151,812 | $1,140,588 | $1,480,660 | $346,437 | $332,591 | $436,441 | ($285,999) | ($277,981) | ($368,173) |
COSTS AND EXPENSES: | |||||||||||||||||||||||||||||||||||||
Direct vehicle and operating | 1,405,900 | 1,188,900 | 2,757,100 | 2,303,100 | 4,795,788 | 4,566,378 | 4,283,394 | 215,790 | 214,536 | 596,463 | 583,799 | 751,468 | 745,535 | 768,456 | 558,350 | 549,971 | 708,477 | 40,861 | 40,151 | 51,008 | -2,748 | -6,323 | -8,017 | ||||||||||||||
Vehicle depreciation and lease charges, net | 641,100 | 519,800 | 1,228,100 | 1,034,900 | 2,148,158 | 1,905,739 | 1,868,147 | 89,131 | 63,299 | 188,368 | 203,983 | 270,957 | 299,200 | 426,092 | 302,648 | 288,433 | 378,898 | 168,446 | 186,677 | 251,526 | -282,726 | -271,127 | -359,467 | ||||||||||||||
Selling, general and administrative | 274,800 | 206,600 | 526,300 | 414,300 | 945,581 | 745,117 | 664,442 | 54,454 | 47,851 | 147,479 | 145,641 | 191,043 | 209,341 | 200,389 | 143,258 | 140,345 | 184,769 | 4,719 | 5,810 | 6,937 | -498 | -514 | -663 | ||||||||||||||
Interest Income (Expense), Net | 592,886 | 644,703 | 714,224 | 12,206 | 19,627 | 44,601 | 58,899 | 77,462 | 89,303 | 96,560 | 11,156 | 29,552 | 36,003 | 33,472 | 29,364 | 41,485 | -27 | -17 | 26 | ||||||||||||||||||
Total expenses | 2,488,900 | 2,053,500 | 4,839,500 | 4,038,500 | 8,517,955 | 7,924,485 | 7,530,212 | 371,581 | 345,313 | 976,911 | 992,322 | 1,290,930 | 1,344,436 | 1,494,089 | 1,015,412 | 1,008,301 | 1,308,147 | 247,498 | 262,002 | 350,956 | -285,999 | -277,981 | -368,173 | ||||||||||||||
(Increase) decrease in fair value of derivatives | -3,600 | -900 | 4,326 | -7,990 | 10,810 | 40 | 523 | 525 | -3,367 | -3,244 | -28,694 | -28,848 | -5,634 | -5,634 | 525 | 2,267 | 2,390 | ||||||||||||||||||||
INCOME / (LOSS) BEFORE INCOME TAXES and EQUITY IN EARNINGS OF SUBS | 225,700 | -26,900 | 382,100 | 171,700 | -24,000 | 105,400 | 308,200 | 107,000 | -146,700 | 311,700 | 147,600 | 502,852 | 373,895 | 32,322 | 88,969 | 105,886 | 234,814 | 206,243 | 261,242 | 221,418 | 81,008 | 136,400 | 137,921 | 178,147 | 98,414 | 68,322 | 83,095 | ||||||||||
INCOME TAX EXPENSE | 95,800 | 70,700 | 155,300 | 94,900 | 227,073 | 143,846 | 33,322 | 33,469 | 39,265 | 89,516 | 80,594 | 101,692 | 90,202 | 35,986 | 89,212 | 80,270 | 100,772 | 304 | 324 | 920 | |||||||||||||||||
NET INCOME / (LOSS) BEFORE EQUITY IN EARNINGS OF SUBS | 145,298 | 125,649 | 159,550 | 47,188 | 57,651 | 77,375 | 98,110 | 67,998 | 82,175 | ||||||||||||||||||||||||||||
EQUITY IN EARNINGS OF SUBSIDIARIES | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 98,110 | 67,998 | 82,175 | -98,110 | -67,998 | -82,175 | ||||||||||||||||||||||||
Net income attributable to The Hertz Corporation and Subsidiaries' common stockholder | $129,900 | ($28,300) | $251,300 | $101,000 | ($48,200) | $58,800 | $212,600 | $62,100 | ($123,000) | $156,400 | $52,700 | $275,779 | $210,489 | ($18,383) | $55,500 | $33,901 | $66,621 | $42,505 | $16,523 | $12,496 | $49,165 | $42,263 | $27,292 | $145,298 | $125,649 | $159,550 | $131,216 | $45,022 | $145,298 | $125,649 | $159,550 | $98,110 | $67,998 | $82,175 | ($98,110) | ($67,998) | ($82,175) |
Recovered_Sheet12
GUARANTOR AND NON-GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - DOLLAR THRIFTY (Details 3) (USD $) | 6 Months Ended | 12 Months Ended | 1 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||
Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Mar. 31, 2012 | Nov. 30, 2009 | Sep. 30, 2012 | Sep. 30, 2011 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | Sep. 30, 2012 | Sep. 30, 2011 | Dec. 31, 2011 | Sep. 30, 2012 | Sep. 30, 2011 | Dec. 31, 2011 | Sep. 30, 2012 | Sep. 30, 2011 | Dec. 31, 2011 | |
Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | Dollar Thrifty Automotive Group Inc. | |||||||
Guarantor Subsidiaries | Guarantor Subsidiaries | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Eliminations | Eliminations | |||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | |||||||||||||||||||||
Net cash provided by operating activities | $1,466,000,000 | $1,183,000,000 | $2,748,412,000 | $2,258,521,000 | $2,237,927,000 | $434,770,000 | $458,610,000 | $567,294,000 | $461,941,000 | $535,924,000 | $206,985,000 | $268,555,000 | $306,521,000 | $319,585,000 | $262,206,000 | $347,234,000 | ($91,800,000) | ($72,151,000) | ($86,461,000) | ||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||||||||
Revenue earning equipment expenditures | -6,825,500,000 | -5,711,000,000 | -9,613,239,000 | -9,454,311,000 | -8,440,872,000 | -1,380,617,000 | -983,879,000 | -1,168,532,000 | -1,239,088,000 | -1,060,251,000 | -38,350,000 | -46,155,000 | -58,522,000 | -1,342,267,000 | -937,724,000 | -1,110,010,000 | |||||
Revenue-earning vehicles-Proceeds from sales | 3,742,800,000 | 3,608,300,000 | 7,125,096,000 | 7,850,442,000 | 7,518,446,000 | 757,091,000 | 492,008,000 | 757,766,000 | 856,775,000 | 1,477,368,000 | 26,623,000 | 31,135,000 | 42,746,000 | 730,468,000 | 460,873,000 | 715,020,000 | |||||
Net change in cash & cash equivalents required minimum balance | 100,000,000 | 100,000,000 | -100,000,000 | 100,000,000 | 100,000,000 | ||||||||||||||||
Net change in restricted cash and investments | 103,645,000 | 76,306,000 | -75,461,000 | 345,786,000 | -22,750,000 | -4,817,000 | 270,000 | 16,000 | 108,462,000 | 76,036,000 | -75,477,000 | ||||||||||
Property, equipment and software-Purchases | -13,901,000 | -11,196,000 | -16,633,000 | -23,031,000 | -15,508,000 | -13,817,000 | -11,108,000 | -16,543,000 | -84,000 | -88,000 | -90,000 | ||||||||||
Property, equipment and software-Proceeds from sales | 3,491,000 | 353,000 | 359,000 | 464,000 | 104,000 | 3,491,000 | 324,000 | 330,000 | 29,000 | 29,000 | |||||||||||
Dividends received | 79,000,000 | 191,675,000 | 266,675,000 | -79,000,000 | -191,675,000 | -266,675,000 | |||||||||||||||
Investment in subsidiary | -231,600,000 | -249,389,000 | -247,713,000 | 231,600,000 | 249,389,000 | 247,713,000 | |||||||||||||||
Intercompany | -35,029,000 | -119,298,000 | -139,869,000 | -56,793,000 | 5,583,000 | 8,993,000 | 91,822,000 | 113,715,000 | 130,876,000 | ||||||||||||
Net cash used in investing activities | -3,264,100,000 | -2,215,800,000 | -4,747,290,000 | -2,192,902,000 | -943,568,000 | -530,291,000 | -326,408,000 | -402,501,000 | -59,094,000 | 278,955,000 | -214,499,000 | -102,546,000 | -52,880,000 | -560,214,000 | -395,291,000 | -461,535,000 | 244,422,000 | 171,429,000 | 111,914,000 | ||
Debt and other obligations: | |||||||||||||||||||||
Proceeds from vehicle debt and other obligations | 581,169,000 | 1,137,903,000 | 1,537,903,000 | 526,876,000 | 44,781,000 | 581,169,000 | 1,192,226,000 | 1,592,466,000 | -54,323,000 | -54,563,000 | |||||||||||
Payments of vehicle debt and other obligations | -500,000,000 | -1,072,073,000 | -1,387,073,000 | -847,448,000 | -785,225,000 | -500,000,000 | -1,081,350,000 | -1,396,350,000 | 9,277,000 | 9,277,000 | |||||||||||
Payments-non-vehicle debt | -148,125,000 | -148,125,000 | -10,000,000 | -20,000,000 | -148,125,000 | -148,125,000 | |||||||||||||||
Issuance of common shares | 120,600,000 | 1,694,000 | 2,921,000 | 4,774,000 | 2,988,000 | 129,583,000 | 1,694,000 | 2,921,000 | 4,774,000 | ||||||||||||
Net settlement of employee withholding taxes on share-based awards | -1,215,000 | -3,205,000 | -3,205,000 | -722,000 | -1,215,000 | -3,205,000 | -3,205,000 | ||||||||||||||
Early termination of interest rate swap | -8,815,000 | -8,815,000 | |||||||||||||||||||
Forward stock repurchase agreement | -100,000,000 | -100,000,000 | |||||||||||||||||||
Payment of financing costs | -20,600,000 | -6,900,000 | -49,433,000 | -91,482,000 | -78,151,000 | -8,770,000 | -13,303,000 | -14,757,000 | -11,792,000 | -6,615,000 | -7,825,000 | -1,997,000 | -2,038,000 | -945,000 | -11,306,000 | -12,719,000 | |||||
Dividends paid | -79,000,000 | -191,675,000 | -266,675,000 | 79,000,000 | 191,675,000 | 266,675,000 | |||||||||||||||
Capital contribution from Parent | 0 | 0 | 0 | 0 | 0 | 231,622,000 | 245,907,000 | 246,842,000 | -231,622,000 | -245,907,000 | -246,842,000 | ||||||||||
Net cash provided by (used in) financing activities | 1,756,100,000 | 692,400,000 | 1,595,166,000 | -1,512,255,000 | 104,517,000 | 43,742,000 | -95,882,000 | -119,298,000 | -340,098,000 | -644,111,000 | -36,482,000 | -150,406,000 | -257,409,000 | 232,846,000 | 153,802,000 | 163,564,000 | -152,622,000 | -99,278,000 | -25,453,000 | ||
CHANGE IN CASH AND CASH EQUIVALENTS | -50,200,000 | -345,200,000 | -397,973,000 | -1,442,798,000 | 1,388,539,000 | -51,779,000 | 36,320,000 | 45,495,000 | 62,749,000 | 170,768,000 | -43,996,000 | 15,603,000 | -3,768,000 | -7,783,000 | 20,717,000 | 49,263,000 | |||||
CASH AND CASH EQUIVALENTS: | |||||||||||||||||||||
Cash and cash equivalents at beginning of period | 533,235,000 | 931,208,000 | 931,208,000 | 2,374,006,000 | 985,467,000 | 586,000,000 | 508,648,000 | 463,153,000 | 463,153,000 | 400,404,000 | 229,636,000 | 446,239,000 | 450,007,000 | 450,007,000 | 62,409,000 | 13,146,000 | 13,146,000 | ||||
Cash and cash equivalents at end of period | $483,000,000 | $586,000,000 | $533,235,000 | $931,208,000 | $2,374,006,000 | $586,000,000 | $456,869,000 | $499,473,000 | $508,648,000 | $463,153,000 | $400,404,000 | $402,243,000 | $465,610,000 | $446,239,000 | $54,626,000 | $33,863,000 | $62,409,000 |