Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Jul. 31, 2017 | |
Entity Information [Line Items] | ||
Entity Registrant Name | HERTZ GLOBAL HOLDINGS, INC | |
Entity Central Index Key | 1,657,853 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 83,716,852 | |
The Hertz Corporation | ||
Entity Information [Line Items] | ||
Entity Registrant Name | HERTZ CORP | |
Entity Central Index Key | 47,129 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 100 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
ASSETS | ||
Cash and cash equivalents | $ 1,141 | $ 816 |
Restricted cash and cash equivalents: | 1,062 | 278 |
Receivables: | 1,210 | 1,283 |
Prepaid expenses and other assets | 565 | 578 |
Revenue earning vehicles: | ||
Vehicles | 16,149 | 13,655 |
Less accumulated depreciation | (2,963) | (2,837) |
Total revenue earning vehicles, net | 13,186 | 10,818 |
Property and equipment: | ||
Land, buildings and leasehold improvements | 1,188 | 1,165 |
Service equipment and other | 771 | 724 |
Less accumulated depreciation | (1,120) | (1,031) |
Total property and equipment, net | 839 | 858 |
Other intangible assets, net | 3,239 | 3,332 |
Goodwill | 1,082 | 1,081 |
Assets held for sale | 109 | 111 |
Total assets | 22,433 | 19,155 |
LIABILITIES AND EQUITY | ||
Accounts payable: | 1,381 | 821 |
Accrued liabilities | 963 | 980 |
Accrued taxes, net | 166 | 165 |
Debt: | 16,809 | 13,541 |
Public liability and property damage | 423 | 407 |
Deferred income taxes, net | 1,922 | 2,149 |
Liabilities held for sale | 13 | 17 |
Total liabilities | 21,677 | 18,080 |
Commitments and contingencies | ||
Equity: | ||
Preferred Stock, $0.01 par value, no shares issued and outstanding | 0 | 0 |
Common Stock | 1 | 1 |
Additional paid-in capital | 2,234 | 2,227 |
Accumulated deficit | (1,214) | (882) |
Accumulated other comprehensive income (loss) | (165) | (171) |
Stockholders' Equity before Treasury Stock | 856 | 1,175 |
Treasury Stock, at cost, 2 shares and 2 shares | (100) | (100) |
Total equity | 756 | 1,075 |
Total liabilities and equity | 22,433 | 19,155 |
Vehicles | ||
ASSETS | ||
Restricted cash and cash equivalents: | 183 | 235 |
Receivables: | 282 | 546 |
LIABILITIES AND EQUITY | ||
Accounts payable: | 677 | 258 |
Debt: | 11,176 | 9,646 |
Non-vehicle | ||
ASSETS | ||
Restricted cash and cash equivalents: | 879 | 43 |
Receivables: | 928 | 737 |
LIABILITIES AND EQUITY | ||
Accounts payable: | 704 | 563 |
Debt: | 5,633 | 3,895 |
The Hertz Corporation | ||
ASSETS | ||
Cash and cash equivalents | 1,141 | 816 |
Restricted cash and cash equivalents: | 1,062 | 278 |
Receivables: | 1,210 | 1,283 |
Prepaid expenses and other assets | 565 | 578 |
Revenue earning vehicles: | ||
Vehicles | 16,149 | 13,655 |
Less accumulated depreciation | (2,963) | (2,837) |
Total revenue earning vehicles, net | 13,186 | 10,818 |
Property and equipment: | ||
Land, buildings and leasehold improvements | 1,188 | 1,165 |
Service equipment and other | 771 | 724 |
Less accumulated depreciation | (1,120) | (1,031) |
Total property and equipment, net | 839 | 858 |
Other intangible assets, net | 3,239 | 3,332 |
Goodwill | 1,082 | 1,081 |
Assets held for sale | 109 | 111 |
Total assets | 22,433 | 19,155 |
LIABILITIES AND EQUITY | ||
Accounts payable: | 1,381 | 821 |
Accrued liabilities | 963 | 980 |
Accrued taxes, net | 166 | 165 |
Debt: | 16,809 | 13,541 |
Public liability and property damage | 423 | 407 |
Deferred income taxes, net | 1,923 | 2,149 |
Liabilities held for sale | 13 | 17 |
Total liabilities | 21,678 | 18,080 |
Commitments and contingencies | ||
Equity: | ||
Common Stock | 0 | 0 |
Additional paid-in capital | 3,158 | 3,150 |
Due from affiliate | (40) | (37) |
Accumulated deficit | (2,198) | (1,867) |
Accumulated other comprehensive income (loss) | (165) | (171) |
Total equity | 755 | 1,075 |
Total liabilities and equity | 22,433 | 19,155 |
The Hertz Corporation | Vehicles | ||
ASSETS | ||
Restricted cash and cash equivalents: | 183 | 235 |
Receivables: | 282 | 546 |
LIABILITIES AND EQUITY | ||
Accounts payable: | 677 | 258 |
Debt: | 11,176 | 9,646 |
The Hertz Corporation | Non-vehicle | ||
ASSETS | ||
Restricted cash and cash equivalents: | 879 | 43 |
Receivables: | 928 | 737 |
LIABILITIES AND EQUITY | ||
Accounts payable: | 704 | 563 |
Debt: | $ 5,633 | $ 3,895 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Preferred Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred Stock, shares issued | 0 | 0 |
Preferred Stock, shares outstanding | 0 | 0 |
Common Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common Stock, shares issued | 86,000,000 | 85,000,000 |
Common Stock, shares outstanding | 84,000,000 | 83,000,000 |
Treasury Stock, shares repurchased | 2,000,000 | 2,000,000 |
Non-vehicle | ||
Receivables, allowance for doubtful accounts (in dollars) | $ 37 | $ 42 |
The Hertz Corporation | ||
Receivables, allowance for doubtful accounts (in dollars) | $ 37 | $ 42 |
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 |
Common Stock, shares outstanding | 100 | 100 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Revenues: | ||||
Worldwide vehicle rental | $ 2,062 | $ 2,124 | $ 3,827 | $ 3,963 |
All other operations | 162 | 146 | 313 | 290 |
Total revenues | 2,224 | 2,270 | 4,140 | 4,253 |
Expenses: | ||||
Direct vehicle and operating | 1,255 | 1,267 | 2,387 | 2,425 |
Depreciation of revenue earning vehicles and lease charges, net | 743 | 629 | 1,444 | 1,245 |
Selling, general and administrative | 223 | 234 | 442 | 459 |
Total interest expense, net | 158 | 174 | 289 | 325 |
Intangible asset impairments | 86 | 0 | 86 | 0 |
Other (income) expense, net | 4 | 1 | 31 | (89) |
Total expenses | 2,469 | 2,305 | 4,679 | 4,365 |
Income (loss) from continuing operations before income taxes | (245) | (35) | (539) | (112) |
Income tax (provision) benefit | 87 | 7 | 158 | 32 |
Net income (loss) from continuing operations | (158) | (28) | (381) | (80) |
Net income (loss) from discontinued operations | 0 | (15) | 0 | (13) |
Net income (loss) | $ (158) | $ (43) | $ (381) | $ (93) |
Weighted average shares outstanding: | ||||
Basic (in shares) | 83 | 85 | 83 | 85 |
Diluted (in shares) | 83 | 85 | 83 | 85 |
Earnings (loss) per share - basic and diluted: | ||||
Basic earnings (loss) per share from continuing operations (in dollars per share) | $ (1.90) | $ (0.33) | $ (4.59) | $ (0.94) |
Basic earnings (loss) per share from discontinued operations (in dollars per share) | 0 | (0.18) | 0 | (0.15) |
Basic earnings (loss) per share (in dollars per share) | (1.90) | (0.51) | (4.59) | (1.09) |
Diluted earnings (loss) per share from continuing operations (in dollars per share) | (1.90) | (0.33) | (4.59) | (0.94) |
Diluted earnings (loss) per share from discontinued operations (in dollars per share) | 0 | (0.18) | 0 | (0.15) |
Diluted earnings (loss) per share (in dollars per share) | $ (1.90) | $ (0.51) | $ (4.59) | $ (1.09) |
Vehicles | ||||
Expenses: | ||||
Total interest expense, net | $ 82 | $ 72 | $ 153 | $ 140 |
Non-vehicle | ||||
Expenses: | ||||
Total interest expense, net | 76 | 102 | 136 | 185 |
The Hertz Corporation | ||||
Revenues: | ||||
Worldwide vehicle rental | 2,062 | 2,124 | 3,827 | 3,963 |
All other operations | 162 | 146 | 313 | 290 |
Total revenues | 2,224 | 2,270 | 4,140 | 4,253 |
Expenses: | ||||
Direct vehicle and operating | 1,255 | 1,267 | 2,387 | 2,425 |
Depreciation of revenue earning vehicles and lease charges, net | 743 | 629 | 1,444 | 1,245 |
Selling, general and administrative | 223 | 234 | 442 | 459 |
Total interest expense, net | 157 | 174 | 287 | 325 |
Intangible asset impairments | 86 | 0 | 86 | 0 |
Other (income) expense, net | 4 | 1 | 31 | (89) |
Total expenses | 2,468 | 2,305 | 4,677 | 4,365 |
Income (loss) from continuing operations before income taxes | (244) | (35) | (537) | (112) |
Income tax (provision) benefit | 86 | 7 | 157 | 32 |
Net income (loss) from continuing operations | (158) | (28) | (380) | (80) |
Net income (loss) from discontinued operations | 0 | (15) | 0 | (11) |
Net income (loss) | (158) | (43) | (380) | (91) |
The Hertz Corporation | Vehicles | ||||
Expenses: | ||||
Total interest expense, net | 82 | 72 | 153 | 140 |
The Hertz Corporation | Non-vehicle | ||||
Expenses: | ||||
Total interest expense, net | $ 75 | $ 102 | $ 134 | $ 185 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Net income (loss) | $ (158) | $ (43) | $ (381) | $ (93) |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | (4) | (18) | 12 | 18 |
Unrealized holding gains (losses) on securities | 0 | (8) | 0 | 9 |
Reclassification of realized gain on securities to other (income) expense | 0 | 0 | (3) | 0 |
Net gain (loss) on defined benefit pension plans | (3) | (34) | (4) | (34) |
Reclassification from other comprehensive income (loss) to selling, general and administrative expense for amortization of actuarial (gains) losses on defined benefit pension plans | 1 | 2 | 2 | 4 |
Total other comprehensive income (loss) before income taxes | (6) | (58) | 7 | (3) |
Income tax (provision) benefit related to net gains and losses on defined benefit pension plans | 0 | 14 | 0 | 14 |
Income tax (provision) benefit related to reclassified amounts of net periodic costs on defined benefit pension plans | (1) | (1) | (1) | (2) |
Total other comprehensive income (loss) | (7) | (45) | 6 | 9 |
Total comprehensive income (loss) | (165) | (88) | (375) | (84) |
The Hertz Corporation | ||||
Net income (loss) | (158) | (43) | (380) | (91) |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | (4) | (18) | 12 | 18 |
Unrealized holding gains (losses) on securities | 0 | (8) | 0 | 9 |
Reclassification of realized gain on securities to other (income) expense | 0 | 0 | (3) | 0 |
Net gain (loss) on defined benefit pension plans | (3) | (34) | (4) | (34) |
Reclassification from other comprehensive income (loss) to selling, general and administrative expense for amortization of actuarial (gains) losses on defined benefit pension plans | 1 | 2 | 2 | 4 |
Total other comprehensive income (loss) before income taxes | (6) | (58) | 7 | |
Income tax (provision) benefit related to net gains and losses on defined benefit pension plans | 0 | 14 | 0 | 14 |
Income tax (provision) benefit related to reclassified amounts of net periodic costs on defined benefit pension plans | (1) | (1) | (1) | (2) |
Total other comprehensive income (loss) | (7) | (45) | 6 | 9 |
Total comprehensive income (loss) | $ (165) | $ (88) | $ (374) | $ (82) |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (381) | $ (93) |
Less: Net income (loss) from discontinued operations | 0 | (13) |
Net income (loss) from continuing operations | (381) | (80) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation of revenue earning vehicles, net | 1,410 | 1,212 |
Depreciation and amortization, non-vehicle | 120 | 128 |
Amortization and write-off of deferred financing costs | 20 | 22 |
Amortization and write-off of debt discount (premium) | 1 | 3 |
Loss on extinguishment of debt | 8 | 20 |
Stock-based compensation charges | 12 | 12 |
Provision for receivables allowance | 17 | 24 |
Deferred income tax, net | (175) | (49) |
Impairment charges and asset write-downs | 116 | 3 |
(Gain) loss on sale of shares in equity investment | (3) | (75) |
Other | 7 | (4) |
Changes in assets and liabilities | ||
Non-vehicle receivables | (180) | (214) |
Prepaid expenses and other assets | (71) | (48) |
Non-vehicle accounts payable | 134 | 43 |
Accrued liabilities | (53) | (15) |
Accrued taxes, net | (1) | 14 |
Public liability and property damage | 1 | 18 |
Net cash provided by (used in) operating activities | 982 | 1,014 |
Cash flows from investing activities: | ||
Revenue earning vehicles expenditures | (6,709) | (6,887) |
Proceeds from disposal of revenue earning vehicles | 3,835 | 4,787 |
Capital asset expenditures, non-vehicle | (103) | (72) |
Proceeds from disposal of property and other equipment | 11 | 39 |
Sales of shares in equity investment, net of amounts invested | 9 | 188 |
Other | (2) | 0 |
Net cash provided by (used in) investing activities | (2,904) | (1,929) |
Cash flows from financing activities: | ||
Payment of financing costs | (34) | (51) |
Early redemption premium payment | (5) | 0 |
Transfers from discontinued entities | 0 | 2,122 |
Other | (1) | 12 |
Net cash provided by (used in) financing activities | 2,235 | 1,718 |
Effect of foreign currency exchange rate changes on cash and cash equivalents from continuing operations | 12 | 8 |
Net increase (decrease) in cash and cash equivalents during the period from continuing operations | 325 | 811 |
Cash and cash equivalents at beginning of period | 816 | 474 |
Cash and cash equivalents at end of period | 1,141 | 1,285 |
Cash flows from discontinued operations: | ||
Cash flows provided by (used in) operating activities | 0 | 205 |
Cash flows provided by (used in) investing activities | 0 | (78) |
Cash flows provided by (used in) financing activities | 0 | (96) |
Net increase (decrease) in cash and cash equivalents during the period from discontinued operations | 0 | 31 |
Cash paid during the period for: | ||
Income taxes, net of refunds | 29 | 25 |
Supplemental disclosures of non-cash flow information: | ||
Purchases of revenue earning vehicles included in accounts payable and accrued liabilities | 546 | 560 |
Sales of revenue earning vehicles included in receivables | 151 | 392 |
Purchases of property and other equipment included in accounts payable | 22 | 19 |
Sales of property and other equipment included in receivables | 5 | 17 |
Capital Lease Obligations Incurred | 13 | 0 |
Vehicles | ||
Cash flows from investing activities: | ||
Net change in restricted cash and cash equivalents, vehicle and non vehicle | 55 | 18 |
Cash flows from financing activities: | ||
Proceeds from issuance of debt | 5,028 | 6,079 |
Repayments of debt | (3,665) | (5,078) |
Cash paid during the period for: | ||
Interest, net of amounts capitalized: | 130 | 115 |
Non-vehicle | ||
Cash flows from investing activities: | ||
Net change in restricted cash and cash equivalents, vehicle and non vehicle | 0 | (2) |
Cash flows from financing activities: | ||
Net change in restricted cash and cash equivalents, non-vehicle | (834) | 0 |
Proceeds from issuance of debt | 2,100 | 1,477 |
Repayments of debt | (354) | (2,843) |
Cash paid during the period for: | ||
Interest, net of amounts capitalized: | 128 | 167 |
The Hertz Corporation | ||
Cash flows from operating activities: | ||
Net income (loss) | (380) | (91) |
Less: Net income (loss) from discontinued operations | 0 | (11) |
Net income (loss) from continuing operations | (380) | (80) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation of revenue earning vehicles, net | 1,410 | 1,212 |
Depreciation and amortization, non-vehicle | 120 | 128 |
Amortization and write-off of deferred financing costs | 20 | 22 |
Amortization and write-off of debt discount (premium) | 1 | 3 |
Loss on extinguishment of debt | 8 | 20 |
Stock-based compensation charges | 12 | 12 |
Provision for receivables allowance | 17 | 24 |
Deferred income tax, net | (174) | (49) |
Impairment charges and asset write-downs | 116 | 3 |
(Gain) loss on sale of shares in equity investment | (3) | (75) |
Other | 7 | (4) |
Changes in assets and liabilities | ||
Non-vehicle receivables | (180) | (214) |
Prepaid expenses and other assets | (71) | (48) |
Non-vehicle accounts payable | 134 | 43 |
Accrued liabilities | (53) | (15) |
Accrued taxes, net | (1) | 14 |
Public liability and property damage | 1 | 18 |
Net cash provided by (used in) operating activities | 984 | 1,014 |
Cash flows from investing activities: | ||
Revenue earning vehicles expenditures | (6,709) | (6,887) |
Proceeds from disposal of revenue earning vehicles | 3,835 | 4,787 |
Capital asset expenditures, non-vehicle | (103) | (72) |
Proceeds from disposal of property and other equipment | 11 | 39 |
Sales of shares in equity investment, net of amounts invested | 9 | 188 |
Other | (2) | 0 |
Net cash provided by (used in) investing activities | (2,904) | (1,929) |
Cash flows from financing activities: | ||
Payment of financing costs | (34) | (51) |
Early redemption premium payment | (5) | 0 |
Transfers from discontinued entities | 0 | 2,122 |
Other | 0 | 12 |
Advances to Hertz Global/Old Hertz Holdings | (3) | 0 |
Net cash provided by (used in) financing activities | 2,233 | 1,718 |
Effect of foreign currency exchange rate changes on cash and cash equivalents from continuing operations | 12 | 8 |
Net increase (decrease) in cash and cash equivalents during the period from continuing operations | 325 | 811 |
Cash and cash equivalents at beginning of period | 816 | 474 |
Cash and cash equivalents at end of period | 1,141 | 1,285 |
Cash flows from discontinued operations: | ||
Cash flows provided by (used in) operating activities | 0 | 207 |
Cash flows provided by (used in) investing activities | 0 | (77) |
Cash flows provided by (used in) financing activities | 0 | (94) |
Net increase (decrease) in cash and cash equivalents during the period from discontinued operations | 0 | 36 |
Cash paid during the period for: | ||
Income taxes, net of refunds | 29 | 25 |
Supplemental disclosures of non-cash flow information: | ||
Purchases of revenue earning vehicles included in accounts payable and accrued liabilities | 546 | 560 |
Sales of revenue earning vehicles included in receivables | 151 | 392 |
Purchases of property and other equipment included in accounts payable | 22 | 19 |
Sales of property and other equipment included in receivables | 5 | 17 |
Dividends | 0 | 334 |
Capital Lease Obligations Incurred | 13 | 0 |
The Hertz Corporation | Vehicles | ||
Cash flows from investing activities: | ||
Net change in restricted cash and cash equivalents, vehicle and non vehicle | 55 | 18 |
Cash flows from financing activities: | ||
Proceeds from issuance of debt | 5,028 | 6,079 |
Repayments of debt | (3,665) | (5,078) |
Cash paid during the period for: | ||
Interest, net of amounts capitalized: | 130 | 115 |
The Hertz Corporation | Non-vehicle | ||
Cash flows from investing activities: | ||
Net change in restricted cash and cash equivalents, vehicle and non vehicle | (834) | (2) |
Cash flows from financing activities: | ||
Proceeds from issuance of debt | 2,100 | 1,477 |
Repayments of debt | (354) | (2,843) |
Cash paid during the period for: | ||
Interest, net of amounts capitalized: | $ 128 | $ 167 |
Background
Background | 6 Months Ended |
Jun. 30, 2017 | |
Background Disclosure [Abstract] | |
Background | Background Hertz Global Holdings, Inc. ("Hertz Global" when including its subsidiaries and "Hertz Holdings" excluding its subsidiaries) was incorporated in Delaware in 2015 to serve as the top-level holding company for Rental Car Intermediate Holdings, LLC which wholly owns The Hertz Corporation ("Hertz" and interchangeably with Hertz Global, the "Company"), Hertz Global's primary operating company. Hertz was incorporated in Delaware in 1967 and is a successor to corporations that have been engaged in the vehicle rental and leasing business since 1918. Hertz operates its vehicle rental business globally primarily through the Hertz, Dollar and Thrifty brands from company-owned, licensee and franchisee locations in the U.S., Africa, Asia, Australia, Canada, The Caribbean, Europe, Latin America, the Middle East and New Zealand. Through its Donlen subsidiary, Hertz provides vehicle leasing and fleet management services. On June 30, 2016, former Hertz Global Holdings, Inc. (for periods on or prior to June 30, 2016, “Old Hertz Holdings” and for periods after June 30, 2016, “Herc Holdings”) completed a spin-off (the “Spin-Off”) of its global vehicle rental business through a dividend to stockholders of record of Old Hertz Holdings as of the close of business on June 22, 2016, the record date for the distribution, of all of the issued and outstanding common stock of Hertz Rental Car Holding Company, Inc. (“New Hertz”), which was re-named Hertz Global Holdings, Inc. in connection with the Spin-Off, on a one-to-five basis. New Hertz, or Hertz Global, is the “accounting successor” to Old Hertz Holdings. As such, the historical financial information of Hertz reflects the equipment rental business as a discontinued operation and the historical financial information of Hertz Global reflects the equipment rental business and certain parent legal entities as discontinued operations. See Note 3 , " Discontinued Operations ," for additional information. Unless noted otherwise, information disclosed in these notes to the consolidated financial statements pertain to the continuing operations of Hertz and Hertz Global. |
Basis of Presentation and Recen
Basis of Presentation and Recently Issued Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Recently Issued Accounting Pronouncements | Basis of Presentation and Recently Issued Accounting Pronouncements Basis of Presentation The Company prepares its unaudited condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). In the opinion of management, the unaudited condensed consolidated financial statements reflect all adjustments of a normal recurring nature that are necessary for a fair presentation of the results for the interim periods presented. Interim results are not necessarily indicative of results for a full year. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and footnotes. Actual results could differ materially from those estimates. The December 31, 2016 condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. The information included in this Form 10-Q should be read in conjunction with information included in the Company's Form 10‑K for the year ended December 31, 2016 (the "2016 Form 10-K"), as filed with the Securities and Exchange Commission ("SEC") on March 6, 2017. Certain prior period amounts have been reclassified to conform with current period presentation. Principles of Consolidation The unaudited condensed consolidated financial statements of Hertz Global include the accounts of Hertz Global and its wholly owned and majority owned U.S. and international subsidiaries. The unaudited condensed consolidated financial statements of Hertz include the accounts of Hertz and its wholly owned and majority owned U.S. and international subsidiaries. In the event that the Company is a primary beneficiary of a variable interest entity, the assets, liabilities, and results of operations of the variable interest entity are included in the Company's consolidated financial statements. The Company accounts for its investment in joint ventures using the equity method when it has significant influence but not control and is not the primary beneficiary. All significant intercompany transactions have been eliminated in consolidation. Out Of Period Adjustments The Company has identified a misstatement in its prior period financial statements, related to the income tax provision, that it has corrected in the second quarter of 2017. The cumulative impact of the adjustment was an increase in net loss of approximately $10 million . There was no impact to pre-tax loss from continuing operations. The misstatement relates to an error in the tax provision for U.S. income of a foreign equity investment transaction for fiscal year 2016. The Company considered both quantitative and qualitative factors in assessing the materiality of the item and determined that the misstatement was not material to any prior period and not material to the three and six months ended June 30, 2017. Correction of Errors The Company identified classification errors within the investing section of the condensed consolidated statement of cash flows for the six months ended June 30, 2016 . One of the errors related to the Company's Donlen operations and was previously disclosed in the Company's 2016 Form 10‑K. The second error related to the Company's operations in Brazil and was identified during the preparation of the condensed consolidated statement of cash flows for the six months ended June 30, 2017. The Company considered both quantitative and qualitative factors in assessing the materiality of the classification errors individually, and in the aggregate, and determined that the classification errors were not material and revised the accompanying condensed consolidated statement of cash flows for the six months ended June 30, 2016 accordingly. Correction of the errors decreased both revenue earning vehicles expenditures and proceeds from disposals of revenue earning vehicles by $381 million for the six months ended June 30, 2016 and did not impact total operating, investing or financing cash flows. These revisions had no impact on the Company's condensed consolidated balance sheet at December 31, 2016 or its condensed consolidated statement of operations for the three and six months ended June 30, 2016 . Recently Issued Accounting Pronouncements Adopted Improvements to Employee Share-Based Payment Accounting In March 2016, the FASB issued guidance that simplifies several areas of employee share-based payment accounting, including income taxes, forfeitures, minimum statutory withholding requirements, and classifications within the statement of cash flows. Most significantly, the new guidance eliminates the need to track tax “windfalls” in a separate pool within additional paid-in capital; instead, excess tax benefits and tax deficiencies will be recorded within income tax expense. The Company adopted this guidance in accordance with the effective date on January 1, 2017. The method of adoption with respect to the condensed consolidated balance sheet was a modified retrospective basis. Upon adoption, the Company recorded a deferred tax asset with an offsetting entry to the opening accumulated deficit to recognize net operating loss carryforwards, net of a valuation allowance, attributable to excess tax benefits on stock compensation that had not been previously recognized. Additionally, the Company has elected to continue to estimate forfeitures expected to occur. The impact to the condensed consolidated opening balance sheet as of January 1, 2017 of adopting this guidance was as follows (in millions): Hertz Global Deferred income taxes, net Total liabilities Accumulated deficit Total equity Total liabilities and equity As of December 31, 2016 $ 2,149 $ 18,080 $ (882 ) $ 1,075 $ 19,155 Record deferred tax asset (49 ) (49 ) 49 49 — As of January 1, 2017 $ 2,100 $ 18,031 $ (833 ) $ 1,124 $ 19,155 Hertz Deferred income taxes, net Total liabilities Accumulated deficit Total equity Total liabilities and equity As of December 31, 2016 $ 2,149 $ 18,080 $ (1,867 ) $ 1,075 $ 19,155 Record deferred tax asset (49 ) (49 ) 49 49 — As of January 1, 2017 $ 2,100 $ 18,031 $ (1,818 ) $ 1,124 $ 19,155 The method of adoption with respect to the condensed consolidated statement of operations and the condensed consolidated statements of cash flows pertaining to excess tax benefits or deficiencies is on a prospective basis. The method of adoption with respect to the condensed consolidated statements of cash flows pertaining to employee taxes paid is on a retrospective basis and adoption of the guidance did not impact the Company's cash flows. Classification of Certain Cash Receipts and Cash Payments In August 2016, the FASB issued guidance that addresses the treatment of certain transactions in statements of cash flows, with the objective of reducing the existing diversity in practice in how certain cash receipts and cash payments are presented and classified. These items include debt prepayment or debt extinguishment costs, proceeds from the settlement of life insurance claims, proceeds from the settlement of corporate-owned life insurance policies, and distributions received from equity method investees. The Company adopted this guidance early, as permitted, on a retrospective basis, on January 1, 2017. Adoption of this guidance did not impact the Company’s financial position, results of operations or cash flows. Accounting for Goodwill Impairment In January 2017, the FASB issued guidance that eliminates the second step of the two-step goodwill impairment test, which requires the determination of the implied fair value of goodwill to measure an impairment. Rather, a goodwill impairment charge will be calculated as the amount by which a reporting unit's carrying amount exceeds its fair value. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The Company adopted this guidance early, as permitted, on a prospective basis, on January 1, 2017. Adoption of this guidance did not impact the Company’s financial position, results of operations or cash flows. Scope of Modification Accounting for Share-Based Payment Awards In May 2017, the FASB issued guidance that amends the scope of modification accounting for share-based payment arrangements. The guidance describes the types of changes to the terms or conditions of share-based payment awards where modification accounting is required to be applied. Modification accounting is not required if the fair value, vesting conditions and classification of the awards are the same immediately before and after the modification. The Company adopted this guidance early, as permitted, on a prospective basis, on April 1, 2017. Adoption of this guidance did not impact the Company’s financial position, results of operations or cash flows. Not Yet Adopted Revenue from Contracts with Customers In May 2014, the FASB issued guidance that will replace most existing revenue recognition guidance in U.S. GAAP. The new guidance applies to all contracts with customers except for leases, insurance contracts, financial instruments, certain nonmonetary exchanges and certain guarantees. The core principle of the guidance is that an entity should recognize revenue from customers for the transfer of goods or services equal to the amount that it expects to be entitled to receive for those goods or services. Also, additional disclosures are required about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments. The FASB has issued several amendments and updates to the new revenue standard (collectively, “Topic 606”), including guidance related to when an entity should recognize revenue gross as a principal or net as an agent and how an entity should identify performance obligations. As amended, Topic 606 is effective for annual and interim periods beginning after December 15, 2017, with early adoption permitted, and allows for full retrospective adoption applied to all periods presented or a modified retrospective adoption with the cumulative effect of initially applying the new guidance as an adjustment to the opening balance of retained earnings recognized at the date of initial application. The Company intends to adopt Topic 606 when effective on January 1, 2018 using a modified retrospective approach applied to all contracts. Prior periods will not be retrospectively adjusted. The Company has reached conclusions on several key accounting assessments related to its revenue recognition, however, it is still finalizing its assessment and quantifying the impacts that adoption of Topic 606 will have on the accounting for its loyalty programs, such as Hertz Gold Plus Rewards, as further described below. The Company is still in the process of determining the level of disaggregated revenue information that it will include in its disclosures and continues to evaluate its internal controls over financial reporting to ensure that controls are in place to prevent or detect material misstatements to the consolidated financial statements upon adoption of Topic 606. Vehicle Rental Operations The Company has concluded that revenue earned by operations for the rental of vehicles and from other forms of rental related activities wherein an identified asset is transferred to the customer and the customer has the ability to control that asset is outside of the scope of Topic 606 and will be evaluated under the new lease guidance described in more detail in the “Leases” disclosure below. Recognition of revenue from other forms of rental related activities that represent a service will not be materially impacted by adoption of Topic 606. The Company is still in the process of evaluating the breakdown of its vehicle rental revenues into lease and non-lease components. Recognition of revenue earned through the licensing of the Hertz, Dollar and Thrifty brands under franchise agreements (“franchise fees”) is expected to remain consistent with current revenue recognition guidance except for initial and renewal franchise fees. Currently, initial franchise fees are recorded as deferred income when received and are recognized as revenue when all material upfront services and conditions related to the franchise fee have been substantially performed and renewal franchise fees are recognized as revenue when the license agreements are effective and collectability is reasonably assured. Upon adoption, revenue from initial and renewal franchise fees that relate to a future contract term, for franchises in effect as of January 1, 2018, will be deferred and recognized over the remaining contract term. However, this amount will not be material. The Company believes that the most significant impact relates to its accounting for reward points earned by customers under its loyalty programs. Upon adoption of Topic 606, each transaction which generates reward points will result in the deferral of revenue equivalent to the retail value of the redemption of the loyalty reward points. The associated revenue will be recognized at the time the customer redeems the loyalty reward points. Under the current guidance, there is no revenue deferral and the Company records an expense associated with the incremental cost of providing the future rental at the time when the reward points are earned. The Company is in the process of quantifying the impact of adoption of Topic 606. Fleet Leasing and Management Operations The Company has concluded that revenue earned by operations for the leasing of vehicles and from other forms of rental related activities wherein an identified asset is transferred to the customer and the customer has the ability to control that asset is outside of the scope of Topic 606 and will be evaluated under the new lease guidance described in more detail in the “Leases” disclosure below. Administration fees and service revenue attributable to the Company's Donlen operations will not be materially impacted by adoption of Topic 606. Leases In February 2016, the FASB issued guidance that replaces the existing lease guidance in U.S. GAAP. The new guidance establishes a right-of-use (“ROU”) model that requires a lessee to record on the balance sheet a ROU asset and corresponding lease liability based on the present value of future lease payments for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. This guidance also expands the requirements for lessees to record leases embedded in other arrangements. Additionally, enhanced quantitative and qualitative disclosures surrounding leases are required which provide financial statement users the ability to assess the amount, timing and uncertainty of cash flows arising from leases. This guidance is effective for annual periods beginning after December 15, 2018 and interim periods within those annual periods with early adoption permitted. A modified retrospective transition approach is required for both lessees and lessors for existing leases at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The Company is still in the process of evaluating whether to avail itself of allowable practicable expedients during transition. Lessee Adoption of this guidance will result in a material increase in the Company's lease-related assets and liabilities on its balance sheet, primarily for leases of rental locations and other assets. Additionally, adoption of this guidance will impact the statement of cash flows with respect to the presentation of the Company's operating activities, but is not expected to impact its presentation of investing or financing activities. Adoption of this guidance is not expected to have a material impact on the Company’s results of operations. The Company has reached conclusions on key accounting assessments related to its leases and is performing an analysis of its lease portfolio to ensure proper application of the new guidance including implementation of internal controls over financial reporting. Lessor The Company has concluded that revenue earned by operations for the rental and leasing of vehicles and from other forms of rental related activities wherein an identified asset is transferred to the customer and the customer has the ability to control that asset is within the scope of this guidance and that additional disclosures regarding lease revenue are required upon adoption. There is no impact to the nature, timing or recognition of rental lease revenue upon adoption of this guidance. Recognition and Measurement of Financial Assets and Financial Liabilities In January 2016, the FASB issued guidance that makes several changes to the manner in which financial assets and liabilities are accounted for, including, among other things, a requirement to measure most equity investments at fair value with changes in fair value recognized in net income (with the exception of investments that are consolidated or accounted for using the equity method or a fair value practicability exception), and amends certain disclosure requirements related to fair value measurements and financial assets and liabilities. This guidance is effective for annual periods beginning after December 15, 2017 and interim periods within those annual periods using a modified retrospective transition method for most of the requirements. Based on current operations, adoption of this guidance is not expected to impact the Company’s financial position, results of operations or cash flows. Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued guidance that sets forth a current expected credit loss impairment model for financial assets, which replaces the current incurred loss model. This model requires a financial asset (or group of financial assets), including trade receivables, measured at amortized cost to be presented at the net amount expected to be collected with an allowance for credit losses deducted from the amortized cost basis. The allowance for credit losses should reflect management’s current estimate of credit losses that are expected to occur over the remaining life of a financial asset. This guidance is effective for annual periods beginning after December 15, 2019 and interim periods within those annual periods using a modified retrospective transition method. Based on current operations, adoption of this guidance is not expected to impact the Company's financial position, results of operations or cash flows. Tax Consequences of Intra-Entity Transfers of Assets Other Than Inventory In October 2016, the FASB issued guidance that requires the tax consequences of intra-entity asset transfers, other than intra-entity asset transfers of inventory, to be recognized when the transfers occur although the profits on the sales of the assets are eliminated in consolidation. Current guidance requires the tax effects of the transfer be recognized later when the assets are sold to a third party or otherwise disposed of. Under the new guidance, the seller's tax expense on the profit and the buyer's deferred tax benefit on the increased tax basis are recognized within the consolidated group when the transfers occur. The guidance is effective for annual periods beginning after December 15, 2017 and interim periods within those annual periods using a modified retrospective transition method. Based on current operations, adoption of this guidance is not expected to have a material impact on the Company's financial position, results of operations, and cash flows. Restricted Cash In November 2016, the FASB issued guidance that clarifies existing guidance on the classification and presentation of restricted cash in the statement of cash flows. The guidance requires entities to include restricted cash and restricted cash equivalents in its cash and cash equivalents balances in the statement of cash flows. Under current guidance, the Company presents these transfers within the cash flows from investing and financing sections in its consolidated statements of cash flows. The guidance is effective for annual periods beginning after December 15, 2017 and interim periods within those annual periods using a retrospective transition method. Adoption of this guidance will impact the reconciliation of the beginning-of-period and end-of-period total amounts shown on the Company's statement of cash flows. For the six months ended June 30, 2017, the amount of cash and cash equivalents as presented on the statement of cash flows will increase by $1.1 billion . Additionally, transfers between restricted and unrestricted cash will no longer be a component of the Company's investing or financing activities. Clarifying the Definition of a Business In January 2017, the FASB issued guidance that clarifies the definition of a business to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The guidance requires an evaluation of whether substantially all of the fair value of assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets. If so, the transaction does not qualify as a business. The guidance also requires an acquired business to include at least one substantive process and narrows the definition of outputs. The guidance is effective for annual periods beginning after December 15, 2017 and interim periods within those annual periods using a prospective transition method. Based on current operations, adoption of this guidance is not expected to impact the Company's financial position, results of operations or cash flows. Clarifying the Scope of Nonfinancial Asset Derecognition and Accounting for Partial Sales of Nonfinancial Assets In February 2017, the FASB issued guidance that clarifies the scope of the established guidance on nonfinancial asset derecognition as well as the accounting for partial sales of nonfinancial assets. The guidance is effective for annual reporting periods beginning after December 15, 2017 and interim periods within those annual periods. The new guidance may be adopted on either a full or modified retrospective basis. Based on current operations, adoption of this guidance is not expected to impact the Company's financial position, results of operations or cash flows. Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost In March 2017, the FASB issued guidance that requires entities to (1) disaggregate the current-service-cost component from the other components of net benefit cost (the “other components”) and present the current-service-cost component with other current compensation costs for related employees in the income statement and (2) present the other components elsewhere in the income statement and outside of income from operations if such a subtotal is presented. The guidance also requires entities to disclose the income statement lines that contain the other components if they are not presented on described separate lines. In addition, only the service-cost component of net benefit cost is eligible for capitalization, which is a change from current practice, under which entities capitalize the aggregate net benefit cost when applicable. The guidance is effective for annual reporting periods beginning after December 15, 2017 and interim periods within those annual periods. The guidance affecting the presentation of the components of net periodic benefit cost in the income statement requires use of the retrospective method of adoption and the guidance limiting the capitalization of net periodic benefit cost to the service cost component requires use of the prospective method of adoption. Adoption of this guidance will result in a reclassification of certain amounts from direct vehicle and operating expense and selling, general and administrative expense to other (income) expense, net which does not impact the Company's financial position, results of operations or cash flows. The Company does not expect the reclassified amounts to be material. |
Discontinued Operations
Discontinued Operations | 6 Months Ended |
Jun. 30, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations As further described in Note 1 , " Background ," on June 30, 2016, the separation of Old Hertz Holdings' global vehicle rental and equipment rental businesses was completed. Results of Discontinued Operations - Hertz Global The following table summarizes the results of the equipment rental business and certain parent legal entities which are presented as discontinued operations in 2016: Three Months Ended Six Months Ended (In millions) 2016 2016 Total revenues $ 349 $ 677 Direct operating expenses 182 366 Depreciation of revenue earning equipment and lease charges, net 91 181 Selling, general and administrative 81 123 Interest expense, net (1) 11 17 Other (income) expense, net — (1 ) Income (loss) from discontinued operations before income taxes (16 ) (9 ) (Provision) benefit for taxes on discontinued operations 1 (4 ) Net income (loss) from discontinued operations $ (15 ) $ (13 ) (1) In addition to interest expense directly associated with Herc Holdings, the Company allocated interest expense related to certain debt repaid in connection with the Spin-Off to discontinued operations. For the three months ended June 30, 2016 , the amount allocated was $3 million . For the six months ended June 30, 2016 , the amount allocated was $5 million . Results of Discontinued Operations - Hertz The following table summarizes the results of the equipment rental business which is presented as discontinued operations in 2016: Three Months Ended Six Months Ended (In millions) 2016 2016 Total revenues $ 349 $ 677 Direct operating expenses 182 366 Depreciation of revenue earning equipment and lease charges, net 91 181 Selling, general and administrative 82 124 Interest expense, net (1) 10 13 Other (income) expense, net — (1 ) Income (loss) from discontinued operations before income taxes (16 ) (6 ) (Provision) benefit for taxes on discontinued operations 1 (5 ) Net income (loss) from discontinued operations $ (15 ) $ (11 ) (1) In addition to interest expense directly associated with Herc Holdings, the Company allocated interest expense related to certain debt repaid in connection with the Spin-Off to discontinued operations. For the three months ended June 30, 2016 , the amount allocated was $3 million . For the six months ended June 30, 2016 , the amount allocated was $5 million . |
Acquisitions and Divestitures
Acquisitions and Divestitures | 6 Months Ended |
Jun. 30, 2017 | |
Business Combinations and Divestitures [Abstract] | |
Acquisitions and Divestitures | Acquisitions and Divestitures Divestitures CAR Inc. Investment In March 2016, the Company sold 204 million shares of common stock of CAR Inc., a publicly traded company on the Hong Kong Stock Exchange and extended its commercial agreement with CAR Inc. to 2023, in exchange for $240 million , of which $233 million was allocated to the sale of shares based on the fair value of those shares. The sale of shares resulted in a pre-tax gain of $75 million which has been recognized and recorded in the Company's corporate operations and is included in other (income) expense, net in the accompanying condensed consolidated statements of operations. Additionally, $7 million of the proceeds were allocated to the extension of the commercial agreement which have been deferred and are being recognized over the remaining term of the commercial agreement. The sale of the shares reduced the Company's ownership interest in CAR Inc. to 1.7% and eliminated the Company's ability to exercise significant influence over CAR Inc. As a result, the Company classifies the investment as an available for sale security which is presented within prepaid expenses and other assets in the accompanying condensed consolidated balance sheet as of December 31, 2016. In February 2017, the Company sold its remaining shares of common stock of CAR Inc. and no longer has an ownership interest in the entity. Brazil Operations During the fourth quarter of 2016, the Company, along with certain of its wholly owned subsidiaries, entered into a definitive stock purchase agreement ("Purchase Agreement") to sell Car Rental Systems do Brasil Locação de Veiculos Ltd., a wholly owned subsidiary of the Company located in Brazil ("Brazil Operations"), to Localiza Fleet S.A. (“Localiza”), a corporation headquartered in Brazil. As part of the overall agreement, the Company intends to enter into certain ancillary agreements with Localiza, including co-branding in Brazil and use of the Localiza brand in other select markets, customer referrals and the exchange of technology and information, at the closing date of the Purchase Agreement. The proceeds from the sale are expected to be approximately $108 million , which is subject to change in accordance with the terms of the Purchase Agreement. Approximately $12 million of the proceeds will be placed into escrow to secure certain indemnification obligations as defined in the Purchase Agreement. In July 2017, the Company received regulatory approval for the sale which is expected to close during the third quarter of 2017. The Brazil Operations are included in the Company's International Rental Car segment. The Brazil operations are classified as held for sale in the accompanying condensed consolidated balance sheets. The carrying amounts of the major classes of assets and liabilities of the Brazil Operations are as follows: (In millions) June 30, 2017 December 31, 2016 ASSETS Cash and cash equivalents $ 4 $ 1 Receivables, net 12 11 Prepaid expenses and other assets 3 5 Revenue earning vehicles, net 81 86 Property and equipment, net 1 1 Intangibles 2 1 Deferred income taxes, net 6 6 Assets held for sale $ 109 $ 111 LIABILITIES Accounts payable $ 6 $ 11 Accrued liabilities 7 6 Liabilities held for sale $ 13 $ 17 |
Revenue Earning Vehicles
Revenue Earning Vehicles | 6 Months Ended |
Jun. 30, 2017 | |
Revenue Earning Vehicles [Abstract] | |
Revenue Earning Vehicles | Revenue Earning Vehicles The components of revenue earning vehicles, net are as follows: (In millions) June 30, 2017 December 31, 2016 Revenue earning vehicles $ 15,739 $ 13,287 Less: Accumulated depreciation (2,843 ) (2,678 ) 12,896 10,609 Revenue earning vehicles held for sale, net 290 209 Revenue earning vehicles, net $ 13,186 $ 10,818 The above amounts exclude revenue earning vehicles of the Company's Brazil Operations which are deemed held for sale as further described in Note 4 , " Acquisitions and Divestitures ". Depreciation of revenue earning vehicles and lease charges, net includes the following: Three Months Ended Six Months Ended (In millions) 2017 2016 2017 2016 Depreciation of revenue earning vehicles $ 660 $ 576 $ 1,265 $ 1,135 (Gain) loss on disposal of revenue earning vehicles (a) 66 35 145 77 Rents paid for vehicles leased 17 18 34 33 Depreciation of revenue earning vehicles and lease charges, net $ 743 $ 629 $ 1,444 $ 1,245 (a) (Gain) loss on disposal of revenue earning vehicles by segment is as follows: Three Months Ended Six Months Ended (In millions) 2017 2016 2017 2016 U.S. Rental Car (i) $ 67 $ 38 $ 145 $ 81 International Rental Car (1 ) (3 ) — (4 ) Total $ 66 $ 35 $ 145 $ 77 (i) Includes costs associated with the Company's U.S. vehicle sales operations of $34 million and $27 million for the three months ended June 30, 2017 and 2016, respectively, and $63 million and $53 million , for the six months ended June 30, 2017 and 2016, respectively. 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 for the vehicles. The impact of depreciation rate changes is as follows: Increase (decrease) Three Months Ended Six Months Ended (In millions) 2017 2016 2017 2016 U.S. Rental Car (a) $ 36 $ 19 $ 62 $ 45 International Rental Car 1 1 1 2 Total $ 37 $ 20 $ 63 $ 47 (a) The depreciation rate changes in the U.S. Rental Car operations for the three and six months ended June 30, 2017 include a net increase in depreciation expense of $24 million based on the review completed during the second quarter of 2017 . The depreciation rate changes in the U.S. Rental Car operations for the three and six months ended June 30, 2016 include a net increase in depreciation expense of $12 million based on the review completed during the second quarter of 2016 . |
Debt
Debt | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Debt | Debt The Company's debt, including its available credit facilities, consists of the following (in millions): Facility Weighted Average Interest Rate at June 30, 2017 Fixed or Maturity June 30, December 31, Non-Vehicle Debt Senior Term Loan 3.98% Floating 6/2023 $ 693 $ 697 Senior RCF 4.41% Floating 6/2021 750 — Senior Notes (1) 6.22% Fixed 4/2019–10/2024 2,950 3,200 Senior Second Priority Secured Notes 7.63% Fixed 6/2022 1,250 — Promissory Notes 7.00% Fixed 1/2028 27 27 Other Non-Vehicle Debt 1.98% Fixed Various 9 10 Unamortized Debt Issuance Costs and Net (Discount) Premium (46 ) (39 ) Total Non-Vehicle Debt 5,633 3,895 Vehicle Debt HVF U.S. Vehicle Medium Term Notes HVF Series 2010-1 (2) 4.96% Fixed 2/2018 115 115 HVF Series 2011-1 (2) N/A N/A N/A — 115 HVF Series 2013-1 (2) 1.91% Fixed 8/2018 625 625 740 855 HVF II U.S. ABS Program HVF II U.S. Vehicle Variable Funding Notes HVF II Series 2013-A (2) 2.39% Floating 1/2019 3,223 1,844 HVF II Series 2013-B (2) 2.34% Floating 1/2019 268 626 HVF II Series 2017-A (2) N/A Floating 10/2018 — — 3,491 2,470 HVF II U.S. Vehicle Medium Term Notes HVF II Series 2015-1 (2) 2.93% Fixed 3/2020 780 780 HVF II Series 2015-2 (2) 2.30% Fixed 9/2018 250 250 HVF II Series 2015-3 (2) 2.96% Fixed 9/2020 350 350 HVF II Series 2016-1 (2) 2.72% Fixed 3/2019 439 439 HVF II Series 2016-2 (2) 3.25% Fixed 3/2021 561 561 HVF II Series 2016-3 (2) 2.56% Fixed 7/2019 400 400 HVF II Series 2016-4 (2) 2.91% Fixed 7/2021 400 400 3,180 3,180 Donlen ABS Program HFLF Variable Funding Notes HFLF Series 2013-2 (2) 2.11% Floating 9/2018 150 410 150 410 Facility Weighted Average Interest Rate at June 30, 2017 Fixed or Maturity June 30, December 31, HFLF Medium Term Notes HFLF Series 2013-3 (5) N/A N/A N/A — 96 HFLF Series 2014-1 (5) 2.06% Floating 7/2017-12/2017 82 148 HFLF Series 2015-1 (5) 1.84% Floating 7/2017-8/2019 198 248 HFLF Series 2016-1 (5) 2.35% Both 7/2017-2/2019 387 385 HFLF Series 2017-1 (5) 2.18% Both 6/2018-5/2020 500 — 1,167 877 Other Vehicle Debt U.S. Vehicle RCF (3) 3.55% Floating 6/2021 168 193 European Revolving Credit Facility 2.75% Floating 1/2019 284 147 European Vehicle Notes (4) 4.29% Fixed 1/2019–10/2021 740 677 European Securitization (2) 1.55% Floating 10/2018 454 312 Canadian Securitization (2) 2.19% Floating 1/2019 268 162 Australian Securitization (2) 3.12% Floating 7/2018 122 117 New Zealand RCF 4.30% Floating 9/2018 35 41 Capitalized Leases 2.74% Floating 7/2017–4/2021 412 244 2,483 1,893 Unamortized Debt Issuance Costs and Net (Discount) Premium (35 ) (39 ) Total Vehicle Debt 11,176 9,646 Total Debt $ 16,809 $ 13,541 N/A - Not Applicable (1) References to the "Senior Notes" include the series of Hertz's unsecured senior notes set forth on the table below. Outstanding principal amounts for each such series of the Senior Notes is also specified below: (In millions) Outstanding Principal Senior Notes June 30, 2017 December 31, 2016 4.25% Senior Notes due April 2018 $ — $ 250 6.75% Senior Notes due April 2019 450 450 5.875% Senior Notes due October 2020 700 700 7.375% Senior Notes due January 2021 500 500 6.25% Senior Notes due October 2022 500 500 5.50% Senior Notes due October 2024 800 800 $ 2,950 $ 3,200 (2) Maturity reference is to the earlier "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) Approximately $67 million of the aggregate maximum borrowing capacity under the U.S. Vehicle RCF is scheduled to expire in January 2018 . (4) References to the "European Vehicle Notes" include the series of Hertz Holdings Netherlands B.V.'s, an indirect wholly-owned subsidiary of Hertz organized under the laws of The Netherlands (“HHN BV”), unsecured senior notes (converted from Euros to U.S. dollars at a rate of 1.14 to 1 and 1.04 to 1 as of June 30, 2017 and December 31, 2016 , respectively) set forth on the table below. Outstanding principal amounts for each such series of the European Vehicle Notes is also specified below: (In millions) Outstanding Principal European Vehicles Notes June 30, 2017 December 31, 2016 4.375% Senior Notes due January 2019 (€425 million aggregate principal amount) $ 484 $ 443 4.125% Senior Notes due October 2021 (€225 million aggregate principal amount) 256 234 $ 740 $ 677 (5) In the case of the Hertz Fleet Lease Funding LP ("HFLF") Medium Term Notes, such notes are repayable from cash flows derived from third-party leases comprising the underlying HFLF collateral pool. The initial maturity date referenced for each series of HFLF Medium Term Notes represents the end of the revolving period for such series, at which time the related notes begin to amortize monthly by an amount equal to the lease collections payable to that series. To the extent the revolving period already has ended, the initial maturity date reflected is July 2017. The second maturity date referenced for each series of HFLF Medium Term Notes represents the date by which Hertz and the investors in the related series expect such series of notes to be repaid in full, which is based upon various assumptions made at the time of pricing of such notes, including the contractual amortization of the underlying leases as well as the assumed rate of prepayments of such leases. Such maturity reference is to the “expected final maturity date” as opposed to the subsequent “legal final maturity date”. The legal final maturity date is the date on which the relevant indebtedness is legally due and payable. Although the underlying lease cash flows that support the repayment of the HFLF Medium Term Notes may vary, the cash flows generally are expected to approximate a straight line amortization of the related notes from the initial maturity date through the expected final maturity date. The Company is highly leveraged and a substantial portion of its liquidity needs arise from debt service on its indebtedness and from the funding of its costs of operations, acquisitions and capital expenditures. The Company’s practice is to maintain sufficient liquidity through cash from operations, credit facilities and other financing arrangements, to mitigate any adverse impact on its operations resulting from adverse financial market conditions. Approximately $1.4 billion of vehicle debt will mature between July 1, 2017 and June 30, 2018. The Company has reviewed the vehicle debt that will mature within this timeframe and determined that it is probable that the Company will be able, and has the intent, to refinance these maturities. If the Company were not able to refinance these maturities, it has available liquidity sufficient to repay them at the maturity date. As of June 30, 2017 , the Company was in compliance with its financial maintenance covenant under the senior secured revolving credit facility ("Senior RCF"), see "Covenant Compliance" below. In June 2017, the Company redeemed all $250 million of its outstanding 4.25% Senior Notes due April 2018 and terminated $150 million of commitments under the Senior RCF, as further described below, and recorded $8 million of charges for early redemption premiums and the write off of deferred financing costs. Non-Vehicle Debt Senior Facilities In June 2017, Hertz terminated $150 million of commitments under the Senior RCF, such that after giving effect to such termination the Senior RCF consists of a $1.55 billion senior secured revolving credit facility. In February 2017, certain terms of the credit agreement governing the $700 million senior secured term facility (the "Senior Term Loan") and the Senior RCF (together, the "Senior Facilities") were amended with the consent of the required lenders under the Senior RCF and such credit agreement. The amendment, among other things, (i) amends the terms of the financial maintenance covenant for the Senior RCF to test, when applicable, Hertz’s consolidated first lien net leverage ratio in lieu of Hertz’s consolidated total net corporate leverage ratio, (ii) provides that Hertz shall not make dividends and certain restricted payments until a leverage ratio test is satisfied, (iii) adds a new covenant restricting the incurrence of certain corporate indebtedness, (iv) caps the amount of unrestricted cash that may be netted for purposes of calculating the consolidated first lien net leverage ratio at $500 million unless a specified consolidated total gross corporate leverage ratio is met for a specified period and (v) amends certain financial definitions relating to the foregoing. Senior Notes In June 2017, Hertz redeemed all $250 million of its outstanding 4.25% Senior Notes due April 2018 (the "April 2018 Notes"). Senior Second Priority Secured Notes In June 2017, Hertz issued $1.25 billion in aggregate principal amount of 7.625% Senior Second Priority Secured Notes due 2022 (the "Senior Second Priority Secured Notes"), the proceeds of which are restricted under the terms of the credit agreement governing the Senior Facilities, primarily related to the repayment of indebtedness. In June 2017, the Company utilized approximately $266 million of the proceeds to pay the outstanding principal and early redemption premium in connection with the redemption of the April 2018 Notes and fees and expenses in connection with the issuance of the Senior Second Priority Secured Notes. In June 2017, the Company also exercised its right to reduce the amount of available commitments under its Senior RCF by $150 million . As of June 30, 2017, approximately $834 million in proceeds remained from the issuance of the Senior Second Priority Secured Notes and is included in restricted cash and cash equivalents, non-vehicle in the accompanying condensed consolidated balance sheet. In July 2017, the Company rescinded a conditional notice of full redemption previously delivered in May 2017 to the holders of its 6.75% Senior Notes due April 2019. The Company is continuing to evaluate its use of the proceeds from the issuance of the Senior Second Priority Secured Notes to either repay certain of its indebtedness, which may include, among other options, repayments of outstanding borrowings under the Senior Term Loan and/or repurchases of certain of Hertz’s Senior Notes, or make additional commitment reductions under the Senior RCF. Vehicle Debt HVF II U.S. Vehicle Variable Funding Notes In May 2017, Hertz Vehicle Financing II LP, a bankruptcy remote, indirect, wholly-owned, special purpose subsidiary of Hertz ("HVF II") issued the Series 2017-A Variable Funding Rental Car Asset Backed Notes (the “HVF II Series 2017-A Notes”) with an aggregate maximum principal amount of $500 million and a maturity date of October 2018. In February 2017, HVF II extended the maturities of the HVF II Series 2013-A Notes and the HVF II Series 2013-B (the "HVF II Series 2013 Notes") Notes from October 2017 to January 2019. In April 2017, HVF II increased the commitments of the HVF II Series 2013 Notes by $250 million , such that after giving effect to such increase the aggregate maximum principal amount of the HVF II Series 2013-A Notes was approximately $3.1 billion and the aggregate maximum principal amount of the HVF II Series 2013-B Notes was approximately $581 million . In June 2017, HVF II transitioned approximately $300 million of commitments available under the HVF II Series 2013-B Notes to the HVF Series 2013-A Notes. HFLF Medium Term Notes In May 2017, an affiliate of HFLF sold approximately $15 million of the HFLF Series 2016-1 Class E Notes to third parties which it had previously purchased in the initial offering in April 2016 and previously was eliminated in consolidation. In April 2017, HFLF, a bankruptcy remote, indirect, wholly-owned, special purpose subsidiary of Donlen, issued the Series 2017-1 Asset-Backed Notes, Class A, Class B, Class C, Class D, and Class E (collectively, the “HFLF Series 2017-1 Notes”) in an aggregate principal amount of $500 million . The HFLF Series 2017-1 Notes are fixed rate, except for the Class A-1 Notes which are floating rate and carry an interest rate based upon a spread to one-month LIBOR. The proceeds of this issuance, together with available cash, were used to reduce amounts outstanding under the HFLF Series 2013-2 Notes. Vehicle Debt-Other European Revolving Credit Facility In February 2017, HHN BV amended its credit agreement (the "European Revolving Credit Facility") to extend the maturity of €235 million of the aggregate maximum borrowings available from October 2017 to January 2019. Canadian Securitizations In February 2017, TCL Funding Limited Partnership, a bankruptcy remote, indirect, wholly-owned, special purpose subsidiary of Hertz ("Funding LP") amended its securitization platform in Canada (the "Canadian Securitization") to extend the maturity of CAD $350 million aggregate maximum borrowings available from January 2018 to January 2019. Capitalized Leases-U.K. Leveraged Financing In February 2017, the capitalized lease financings outstanding in the United Kingdom ("U.K. Leveraged Financing") were amended to extend the maturity of £250 million aggregate maximum borrowings available from October 2017 to January 2019. In May 2017, the U.K. Leveraged Financing was amended to provide for aggregate maximum leasing capacity (subject to asset availability) of up to £287.5 million during the peak season, for a seasonal commitment period into September 2017. Following the expiration of the seasonal commitment period, aggregate maximum borrowings available under the U.K Leveraged Financing will revert to up to £250 million . Borrowing Capacity and Availability Borrowing capacity and availability comes from the Company's "revolving credit facilities," which are a combination of variable funding asset-backed securitization facilities, cash-flow-based revolving credit facilities and asset-based revolving credit facilities. Creditors under each such asset-backed securitization facility and asset-based revolving credit facility have a claim on a specific pool of assets as collateral. The Company's ability to borrow under each such asset-backed securitization facility and asset-based revolving credit facility is a function of, among other things, the value of the assets in the relevant collateral pool. With respect to each such asset-backed securitization facility and asset-based revolving credit facility, the Company refers to the amount of debt it can borrow given a certain pool of assets as the borrowing base. The Company refers to "Remaining Capacity" as the maximum principal amount of debt permitted to be outstanding under the respective facility (i.e., with respect to a variable funding asset-backed securitization facility or asset-based revolving credit facility, the amount of debt the Company could borrow assuming it possessed sufficient assets as collateral) less the principal amount of debt then-outstanding under such facility. With respect to a variable funding asset-backed securitization facility or asset-based revolving credit facility, the Company refers 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 that can be borrowed given the collateral possessed at such time). With respect to the Senior RCF, "Availability Under Borrowing Base Limitation" is the same as "Remaining Capacity" since borrowings under the Senior RCF are not subject to a borrowing base. The following facilities were available to the Company as of June 30, 2017 , and are presented net of any outstanding letters of credit: (In millions) Remaining Capacity Availability Under Borrowing Base Limitation Non-Vehicle Debt Senior RCF $ 9 $ 9 Total Non-Vehicle Debt 9 9 Vehicle Debt U.S. Vehicle RCF 32 10 HVF II U.S. Vehicle Variable Funding Notes 674 20 HFLF Variable Funding Notes 350 — European Revolving Credit Facility — — European Securitization 69 — Canadian Securitization — — Australian Securitization 70 — Capitalized Leases — — New Zealand RCF 9 — Total Vehicle Debt 1,204 30 Total $ 1,213 $ 39 Letters of Credit As of June 30, 2017 , there were outstanding standby letters of credit totaling $804 million . Such letters of credit have been issued primarily to support the Company's insurance programs, vehicle rental concessions and leaseholds as well as to provide credit enhancement for its asset-backed securitization facilities. Of this amount $791 million was issued under the Senior RCF. As of June 30, 2017 , none of the letters of credit have been drawn upon. Special Purpose Entities Substantially all of the revenue earning vehicles and certain related assets are owned by special purpose entities, or are encumbered in favor of the lenders under the various credit facilities, other secured financings and asset-backed securities programs. None of such assets (including the assets owned by Hertz Vehicle Financing II LP, Hertz Vehicle Financing LLC, Rental Car Finance LLC, DNRS II LLC, HFLF, Donlen Trust and various international subsidiaries that facilitate the Company's international securitizations) are available to satisfy the claims of general creditors. These special purpose entities are consolidated variable interest entities, of which the Company is the primary beneficiary, whose sole purpose is to provide commitments to lend in various currencies subject to borrowing bases comprised of revenue earning vehicles and related assets of certain of Hertz International, Ltd.'s subsidiaries. As of June 30, 2017 and December 31, 2016 , its International Vehicle Financing No. 1 B.V., International Vehicle Financing No. 2 B.V. and HA Funding Pty, Ltd. variable interest entities had total assets of $655 million and $454 million , respectively, primarily comprised of loans receivable and revenue earning vehicles, and total liabilities of $654 million and $454 million , respectively, primarily comprised of debt. Covenant Compliance In February 2017, Hertz amended the terms of the financial maintenance covenant for the Senior RCF to test, when applicable, Hertz’s consolidated first lien net leverage ratio. The amended financial covenant provides that Hertz’s consolidated first lien net leverage ratio, as defined in the Senior RCF Credit Agreement, as of the last day of any fiscal quarter (the "Covenant Leverage Ratio"), may not exceed the ratios indicated below: Fiscal Quarter(s) Ending Maximum Ratio June 30, 2017 3.25 to 1.00 September 30, 2017 3.25 to 1.00 December 31, 2017 and each March 31, June 30, September 30 and December 31 ending thereafter 3.00 to 1.00 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Jun. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets As a result of declines in revenue and profitability of the Company and a decline in the share price of Hertz Global's common stock, the Company tested the recoverability of its goodwill and indefinite-lived intangible assets as of June 30, 2017 as further described below. Goodwill The Company performed a goodwill impairment analysis using the income approach, a measurement using level 3 inputs under the GAAP fair value hierarchy. In performing the impairment analysis, the Company leveraged long-term strategic plans, which are based on strategic initiatives for future profitability growth. The weighted average cost of capital used in the discounted cash flow model was calculated based upon the fair value of the Company's debt and stock price with a debt to equity ratio comparable to the vehicle rental car industry. The results of the Company's analysis indicated that the estimated fair value of each reporting unit was substantially in excess of its carrying value, therefore, the Company determined that no goodwill impairment existed as of June 30, 2017 . Intangible Assets The Company performed an impairment analysis of its indefinite-lived intangible assets using the relief from royalty method, a measurement using level 3 inputs under the GAAP fair value hierarchy. As a result of the analysis, the Company concluded that there was an impairment of the Dollar Thrifty tradename in its U.S. Rental Car segment and recorded a charge of $86 million . The impairment was largely due to a decrease in long-term revenue projections coupled with an increase in the weighted average cost of capital. The carrying value of the Dollar Thrifty tradename at June 30, 2017 is approximately $934 million , representing its estimated fair value. A change of 1 percentage point to the weighted average cost of capital assumption used in the impairment analysis could impact the impairment charge by approximately $80 million . |
Employee Retirement Benefits
Employee Retirement Benefits | 6 Months Ended |
Jun. 30, 2017 | |
Retirement Benefits [Abstract] | |
Employee Retirement Benefits | Employee Retirement Benefits The following tables sets forth the net periodic pension expense: Pension Benefits U.S. Non-U.S. Three Months Ended June 30, (In millions) 2017 2016 2017 2016 Components of Net Periodic Benefit Cost: Service cost $ — $ — $ 1 $ 1 Interest cost 6 7 1 2 Expected return on plan assets (7 ) (7 ) (3 ) (3 ) Net amortizations 1 1 1 — Net periodic pension expense (benefit) $ — $ 1 $ — $ — Pension Benefits U.S. Non-U.S. Six Months Ended June 30, (In millions) 2017 2016 2017 2016 Components of Net Periodic Benefit Cost: Service cost $ — $ 1 $ 1 $ 1 Interest cost 11 11 3 4 Expected return on plan assets (13 ) (14 ) (5 ) (6 ) Net amortizations 2 4 1 — Settlement loss 1 1 — — Net periodic pension expense (benefit) $ 1 $ 3 $ — $ (1 ) |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The non-cash stock-based compensation expense associated with the Hertz Holdings stock-based compensation plans is recorded at the Hertz level. Effective January 1, 2017, the Company's board of directors adopted the 2017 Executive Incentive Compensation Plan ("2017 EICP"). The provisions of the plan provide for the pay out of any bonus earned in either cash or performance stock units ("PSUs") for certain groups of employees. The decision regarding the form of payout will be made after the bonus has been earned and as such, the grant date of the PSUs is not established until vested. The potential PSU awards will be based on a monetary amount equivalent to a percentage of employees’ salaries that will be based on the achievement of specific performance metrics in 2017. The specific monetary amount will be calculated at the time of grant. The PSUs are intended to be granted in place of cash bonus awards and, therefore, qualify as equity awards. Compensation cost for these awards is recognized over the requisite service period based on the fair value of the award at the end of each reporting period. The Company calculates the anticipated number of awards to be granted based on the bonus dollars expected to be earned divided by the stock price as of the reporting date. The anticipated awards are used to estimate the compensation expense as of the reporting date. Compensation charges will accumulate as a liability until the grant date, at which time the liability will be reclassified to equity. During the three and six months ended June 30, 2017 , the Company recognized approximately $2 million and $3 million , respectively, of stock-based compensation expense associated with the 2017 EICP. The Company expects approximately 540,000 shares will be granted in connection with this program based on the Company’s stock price as of June 30, 2017 . Under the Hertz Global Holdings, Inc. 2016 Omnibus Incentive Plan, (the "2016 Omnibus Plan"), during the six months ended June 30, 2017 , Hertz Global granted 557,882 non-qualified stock options to certain executives and employees at a weighted average grant date fair value of $9.44 as determined using the Black Scholes option pricing model; 545,283 restricted stock units ("RSUs") at a weighted average grant date fair value of $20.26 ; 423,052 PSUs at a weighted average grant date fair value of $22.08 and 664,643 performance stock awards ("PSAs") at a weighted average grant date fair value of $22.19 , with vesting terms of three to five years. None of the PSUs associated with the 2017 EICP plan are included in the grant amounts above. During the three and six months ended June 30, 2017 , the Company recognized approximately $3 million and $9 million , respectively, of stock-based compensation expense associated with the 2016 Omnibus Plan. A summary of the total compensation expense and associated income tax benefits recognized under all plans, including the cost of stock options, RSUs, PSUs and PSAs is as follows: Three Months Ended Six Months Ended (In millions) 2017 2016 2017 2016 Compensation expense $ 5 $ 6 $ 12 $ 12 Income tax benefit (2 ) (2 ) (5 ) (5 ) Total $ 3 $ 4 $ 7 $ 7 As of June 30, 2017 , there was $26 million of total unrecognized compensation cost related to non-vested stock options, RSUs, PSUs and PSAs granted by Hertz Global under all plans. 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. |
Restructuring
Restructuring | 6 Months Ended |
Jun. 30, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring The Company continuously evaluates its workforce, product offerings and operations to determine when headcount reductions, business process re-engineering, asset impairments or outsourcing arrangements are necessary. There were no significant restructuring programs initiated during the three and six months ended June 30, 2017 . Restructuring charges for the periods shown are as follows: Three Months Ended Six Months Ended (In millions) 2017 2016 2017 2016 By Type: Termination benefits $ 2 $ 10 $ 3 $ 16 Impairments and asset write-downs — 3 — 3 Facility closure and lease obligation costs — 5 — 5 Total $ 2 $ 18 $ 3 $ 24 Three Months Ended Six Months Ended (In millions) 2017 2016 2017 2016 By Caption: Direct vehicle and operating $ — $ 8 $ — $ 9 Selling, general and administrative 2 10 3 15 Total $ 2 $ 18 $ 3 $ 24 Three Months Ended Six Months Ended (In millions) 2017 2016 2017 2016 By Segment: U.S. Rental Car $ 1 $ 15 $ 1 $ 21 International Rental Car — 3 1 3 Corporate 1 — 1 — Total $ 2 $ 18 $ 3 $ 24 The following table sets forth the activity during the six months ended June 30, 2017 affecting the restructuring accrual, which is included in accrued liabilities in the accompanying condensed consolidated balance sheets. The Company expects to pay the remaining restructuring obligations relating to termination benefits within the next two years. Other is primarily comprised of future lease obligations which will be paid over the remaining term of the applicable leases. (In millions) Termination Other Total Balance as of December 31, 2016 $ 13 $ 14 $ 27 Charges incurred 3 — 3 Cash payments (4 ) (2 ) (6 ) Balance as of June 30, 2017 $ 12 $ 12 $ 24 |
Income Tax (Provision) Benefit
Income Tax (Provision) Benefit | 6 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Tax (Provision) Benefit | Income Tax (Provision) Benefit Hertz Global The effective tax rate for the three months ended June 30, 2017 and 2016 was 36% and 20% , respectively. The effective tax rate for the six months ended June 30, 2017 and 2016 was 29% and 29% , respectively. The Company recorded a tax benefit of $87 million for the three months ended June 30, 2017 , compared to $7 million for the three months ended June 30, 2016 . The change was the result of composition of earnings and lower worldwide pre-tax income, offset by discrete items in the quarter, attributable to the out of period adjustment as disclosed in Note 2 , " Basis of Presentation and Recently Issued Accounting Pronouncements " and due in part to tax charges from stock compensation. The Company recorded a tax benefit of $158 million for the six months ended June 30, 2017 , compared to $32 million for the six months ended June 30, 2016 . The change was the result of composition of earnings and lower worldwide pre-tax income, offset by discrete items in the first half of 2017, attributable to the out of period adjustment as disclosed in Note 2 , " Basis of Presentation and Recently Issued Accounting Pronouncements " and due in part to tax charges from stock compensation. Hertz The effective tax rate for the three months ended June 30, 2017 and 2016 was 35% and 20% , respectively. The effective tax rate for the six months ended June 30, 2017 and 2016 was 29% and 29% , respectively. The Company recorded a tax benefit of $86 million for the three months ended June 30, 2017 , compared to $7 million for the three months ended June 30, 2016 . The change was the result of composition of earnings and lower worldwide pre-tax income, offset by discrete items in the quarter, attributable to the out of period adjustment as disclosed in Note 2 , " Basis of Presentation and Recently Issued Accounting Pronouncements " and due in part to tax charges from stock compensation. The Company recorded a tax benefit of $157 million for the six months ended June 30, 2017 , compared to $32 million for the six months ended June 30, 2016 . The change was the result of composition of earnings and lower worldwide pre-tax income, offset by discrete items in the first half of 2017, attributable to the out of period adjustment as disclosed in Note 2 , " Basis of Presentation and Recently Issued Accounting Pronouncements " and due in part to tax charges from stock compensation. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Assets and Liabilities Measured at Fair Value on a Recurring Basis The fair value of accounts receivable, accounts payable and accrued expenses, to the extent the underlying liability will be settled in cash, approximates the carrying values because of the short-term nature of these instruments. Cash Equivalents and Investments The Company’s cash equivalents primarily consist of money market accounts. The Company determines the fair value of cash equivalents using a market approach based on quoted prices in active markets. Investments in equity and other securities that are measured at fair value on a recurring basis consist of available for sale securities. The valuation of these securities is based on Level 1 inputs whereby all significant inputs are observable or can be derived from or corroborated by observable market data. The following table summarizes the ending balances of the Company's cash equivalents and investments: June 30, 2017 December 31, 2016 (In millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Money market funds $ 72 $ 476 $ — $ 548 $ 213 $ 393 $ — $ 606 Equity and other securities — — — — 9 — — 9 Total $ 72 $ 476 $ — $ 548 $ 222 $ 393 $ — $ 615 Debt Obligations The fair value of debt is estimated based on quoted market rates as well as borrowing rates currently available to the Company for loans with similar terms and average maturities (Level 2 inputs). As of June 30, 2017 As of December 31, 2016 (In millions) Nominal Unpaid Principal Balance Aggregate Fair Value Nominal Unpaid Principal Balance Aggregate Fair Value Non-vehicle Debt $ 5,679 $ 5,401 $ 3,934 $ 3,791 Vehicle Debt 11,211 11,190 9,685 9,670 Total $ 16,890 $ 16,591 $ 13,619 $ 13,461 Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis (In millions) Carrying Value as of June 30, 2017 Level 1 Level 2 Level 3 Total Fair Value (Income)/Loss Adjustments Recorded for the Six Months Ended June 30, 2017 Long-lived assets held for sale $ 109 $ — $ 109 $ — $ — Liabilities held for sale $ 13 $ — $ 13 $ — $ — Equity method investments $ 4 $ — $ — $ 4 $ 30 Intangible assets $ 934 $ — $ — $ 934 $ 86 Assets and Liabilities Held for Sale Assets and liabilities held for sale are associated with the Company's Brazil Operations as further described in Note 4 , " Acquisitions and Divestitures ." Investments in Related Parties Investments in related parties are accounted for under the equity method and are evaluated for impairment whenever events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. The Company recognizes an impairment charge whenever there is a decline in value that is determined to be other than temporary. In April 2016, the Company paid approximately $45 million for an equity method investment. In March 2017, the Company determined it had an other than temporary loss in value of its investment and recorded an impairment charge of $30 million which is included in other (income) expense in the accompanying condensed consolidated statement of operations for the six months ended June 30, 2017 . Intangible Assets In June 2017, the Company recorded impairment charges for the Dollar Thrifty tradename as further described in Note 6 , " Goodwill and Intangible Assets ". |
Contingencies and Off-Balance S
Contingencies and Off-Balance Sheet Commitments | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies and Off-Balance Sheet Commitments | Contingencies and Off-Balance Sheet Commitments Legal Proceedings Public Liability and Property Damage The Company is currently a defendant in numerous actions and has received numerous claims on which actions have not yet been commenced for public liability and property damage arising from the operation of motor vehicles rented from the Company. The obligation for public liability and property damage on self-insured U.S. and international vehicles, as stated on the accompanying condensed consolidated balance sheets, 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 rental volume and actuarial evaluations of historical accident claim experience and trends, as well as future projections of ultimate losses, expenses, premiums and administrative costs. At June 30, 2017 and December 31, 2016 , the Company's liability recorded for public liability and property damage matters was $423 million and $407 million , respectively. The Company believes that its analysis is based on the most relevant information available, combined with reasonable assumptions, and that the Company may prudently rely on this information to determine the estimated liability. 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 the Company's estimates change or if actual results differ from these assumptions, the amount of the recorded liability is adjusted to reflect these results. Other Matters From time to time the Company is a party to various legal proceedings. The Company has summarized below the most significant legal proceedings to which the Company was and/or is a party to during the six months ended June 30, 2017 or the period after June 30, 2017 , but before the filing of this Report on Form 10‑Q. Concession Fee Recoveries - In October 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 (“Enterprise”) was filed in the U.S. District Court for the District of Nevada (Enterprise became a defendant in a separate action which they have now settled.) The Sobel case is a consumer class action on behalf of all persons who rented vehicles from Hertz at airports in Nevada and were separately charged airport concession recovery fees by Hertz as part of their rental charges during the class period. In October 2014, the court entered final judgment against the Company and directed Hertz to pay the class approximately $42 million in restitution and $11 million in prejudgment interest, and to pay attorney's fees of $3 million with an additional $3 million to be paid to class counsel from the restitution fund. In November 2014, Hertz timely filed an appeal of that final judgment with the U.S. Court of Appeals for the Ninth Circuit and the plaintiffs cross appealed the court's judgment seeking to challenge the lower court's ruling that Hertz did not deceive or mislead the class members. Following briefing and oral argument, on January 5, 2017, the Ninth Circuit issued an opinion reversing the District Court’s holdings on liability and remedy and vacating the judgment. The Ninth Circuit also rejected plaintiffs’ cross-appeal, finding that Hertz’s actions were not deceptive or misleading. On January 19, 2017, plaintiffs asked the entire Ninth Circuit, sitting en banc, to rehear the appeal. That petition was rejected on February 15, 2017. Plaintiffs elected not to file a petition seeking a non-mandatory further review by the United States Supreme Court, so this matter is now concluded. In re Hertz Global Holdings, Inc. Securities Litigation - In November 2013, a purported shareholder class action, Pedro Ramirez, Jr. v. Hertz Global Holdings, Inc., et al., was commenced in the U.S. District Court for the District of New Jersey naming Old Hertz Holdings and certain of its officers as defendants and alleging violations of the federal securities laws. The complaint alleged that Old Hertz Holdings made material misrepresentations and/or omissions of material fact in its public disclosures during the period from February 25, 2013 through November 4, 2013, in violation of Section 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended, and Rule 10b-5 promulgated thereunder. The complaint sought an unspecified amount of monetary damages on behalf of the purported class and an award of costs and expenses, including counsel fees and expert fees. In June 2014, Old Hertz Holdings responded to the amended complaint by filing a motion to dismiss. After a hearing in October 2014, the court granted Old Hertz Holdings’ motion to dismiss the complaint. The dismissal was without prejudice and plaintiff was granted leave to file a second amended complaint within 30 days of the order. In November 2014, plaintiff filed a second amended complaint which shortened the putative class period such that it was not alleged to have commenced until May 18, 2013 and made allegations that were not substantively very different than the allegations in the prior complaint. In early 2015, this case was assigned to a new federal judge in the District of New Jersey, and Old Hertz Holdings responded to the second amended complaint by filing another motion to dismiss. On July 22, 2015, the court granted Old Hertz Holdings’ motion to dismiss without prejudice and ordered that plaintiff could file a third amended complaint on or before August 22, 2015. On August 21, 2015, plaintiff filed a third amended complaint. The third amended complaint included additional allegations, named additional current and former officers as defendants and expanded the putative class period such that it was alleged to span from February 14, 2013 to July 16, 2015. On November 4, 2015, Old Hertz Holdings filed its motion to dismiss. Thereafter, a motion was made by plaintiff to add a new plaintiff, because of challenges to the standing of the first plaintiff. The court granted plaintiffs leave to file a fourth amended complaint to add the new plaintiff, and the new complaint was filed on March 1, 2016. Old Hertz Holdings and the individual defendants moved to dismiss the fourth amended complaint in its entirety with prejudice on March 24, 2016, and plaintiff filed its opposition to same on May 6, 2016. On June 13, 2016, Old Hertz Holdings and the individual defendants filed their reply briefs in support of their motions to dismiss. The matter is now fully briefed. On April 28, 2017, the court issued an order wherein Old Hertz Holdings' and the individual defendants' motions to dismiss were granted and the plaintiffs’ fourth amended complaint to add a new plaintiff was dismissed with prejudice (the “Order”). On May 30, 2017, the plaintiffs filed a Notice of Appeal with the U. S. Court of Appeals for the Third Circuit. However, the court has not yet released to the parties the expected briefing schedule for this appeal. Ryanair - In July 2015, Ryanair Ltd. ("Ryanair") filed a complaint against Hertz Europe Limited, a subsidiary of the Company, in the High Court of Justice, Queen’s Bench Division, Commercial Court, Royal Courts of Justice of the United Kingdom alleging breach of contract in connection with Hertz Europe Limited’s termination of its vehicle hire agreement with Ryanair following a contractual dispute with respect to Ryanair’s agreement to begin using third party ticket distributors. The complaint seeks damages, interest and costs, together with attorney fees. The Company believes that it has valid and meritorious defenses and, to that end, it has filed a Defense and Counterclaim. In addition, there have been detailed and intensive exchanges of documents by both parties and taking and exchanging of Witness Statements. The Court has decided to postpone the next hearing date to March/April 2018. In the meantime, the parties participated in a mediation in late July 2017. The Company has established a reserve for the matter which is not material. The Company intends to assert that it has meritorious defenses in the foregoing matters and the Company intends to defend itself vigorously. Governmental Investigations - In June 2014, the Company was advised by the staff of the New York Regional Office of the Securities and Exchange Commission (“SEC”) that it is investigating the events disclosed in certain of the Company’s filings with the SEC. In addition, in December 2014 a state securities regulator requested information and starting in June 2016 the Company has had communications with the United States Attorney’s Office for the District of New Jersey regarding the same or similar events. The investigations and communications generally involve the restatements included in the Old Hertz Holdings Form 10-K for the year ended December 31, 2014, as filed with the SEC on July 16, 2015 (the “Old Hertz Holdings 2014 10-K”) and related accounting for prior periods. The Company has and intends to continue to cooperate with all requests related to the foregoing. Due to the stage at which the proceedings are, Hertz is currently unable to predict the likely outcome of the proceedings or estimate the range of reasonably possible losses, which may be material. Among other matters, the restatements included in the Old Hertz Holdings 2014 Form 10-K addressed a variety of accounting matters involving the Company’s Brazil vehicle rental operations. Additionally, the Company has identified certain activities in Brazil that raise issues under the Foreign Corrupt Practices Act and may raise issues under other federal and local laws, which the Company has self-reported to appropriate government entities and the processes with these government entities continue. The Company is continuing to investigate these issues. The Company has established a reserve relating to the activities in Brazil which is not material. However, it is possible that an adverse outcome with respect to the activities in Brazil and the other issues discussed herein could exceed the amount accrued in an amount that could be material to the Company's consolidated financial condition, results of operations or cash flows in any particular reporting period. French Antitrust - In February 2015, the French Competition Authority issued a Statement of Objections claiming that several vehicle rental companies, including the Company and certain of its subsidiaries, violated French competition law by receiving historic market information from twelve French airports relating to the vehicle rental companies operating at those airports and by engaging in a concerted practice relating to train station surcharges. In February 2017, the French Competition Authority issued a decision dismissing all such claims against the Company and its subsidiaries. French Road Tax - The French Tax Authority has challenged the historic practice of several vehicle rental companies, including Hertz France, of registering vehicles in jurisdictions where it is established and where the road tax payable with respect to those vehicles is lower than the road tax payable in the jurisdictions where the vehicles will primarily be used. In respect of a period in 2005, the Company has unsuccessfully appealed the French Tax assessment to the highest Administrative court in France. In respect of a period from 2003 to 2005, following an adverse judgment, the Company appealed the French Tax Authority’s assessment to the Civil Court of Appeal. On March 2, 2017, the Company received an adverse judgment in the road tax appeal from the Civil Court of Appeal in the 2003 to 2005 years. In the third quarter of 2015, following an adverse decision against another industry participant involved in a similar action, the Company recorded charges with respect to this matter of approximately $23 million . In January 2016, the Company made a payment of approximately $9 million . The Company has established reserves for matters where the Company believes that losses are probable and can be reasonably estimated. Other than the aggregate reserve established for claims for public liability and property damage, none of those reserves are material. For matters, including certain of those described above, where the Company has 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 the Company or any of its subsidiaries involved. Accordingly, it is possible that an adverse outcome from such a proceeding could exceed the amount accrued in an amount that could be material to the accompanying consolidated financial condition, results of operations or cash flows in any particular reporting period. Indemnification Obligations In the ordinary course of business, the Company executed 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. Specifically, the Company has indemnified various parties for the costs associated with remediating numerous hazardous substance storage, recycling or disposal sites in many states and, in some instances, for natural resource damages. The amount of any such expenses or related natural resource damages for which the Company may be held responsible could be substantial. In addition, Hertz entered into customary indemnification agreements with Hertz Holdings and certain of the Company's stockholders and their affiliates pursuant to which Hertz Holdings and Hertz will indemnify those entities 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 such entities and certain other claims and liabilities, including liabilities arising out of financing arrangements or securities offerings. The Company has entered into customary indemnification agreements with each of its directors and certain of its officers. Performance under these indemnification obligations would generally be triggered by a breach of terms of the contract or by a third party claim. In connection with the Spin-Off, the Company executed an agreement with Herc Holdings that contains mutual indemnification clauses and a customary indemnification provision with respect to liability arising out of or resulting from assumed legal matters. The Company regularly evaluates the probability of having to incur costs associated with these indemnification obligations and have accrued for expected losses that are probable and estimable. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Agreements with the Icahn Group In the normal course of business, the Company purchases goods and services from entities controlled by Carl C. Icahn and his affiliates, including The Pep Boys - Manny, Moe & Jack. During the three and six months ended June 30, 2017 , the Company purchased approximately $2 million and $4 million , respectively, worth of goods and services from these related parties. Transactions between Hertz Holdings and Hertz On June 30, 2016, Hertz signed a master loan agreement with Hertz Global for a facility size of $425 million with an expiration in June 2017 (the "Old Master Loan"). The interest rate is based on the U.S. Dollar LIBOR rate plus a margin. In June 2017, upon expiration of the Old Master Loan, Hertz signed a new master loan agreement with Hertz Global for a facility size of $425 million with an expiration in June 2018 (the "Master Loan" and together with the Old Master Loan, the "Loan") where amounts outstanding under the Old Master Loan were transferred to the Master Loan. The interest rate is based on the U.S. Dollar LIBOR rate plus a margin. As of June 30, 2017 and December 31, 2016 , there was $105 million and $102 million , respectively outstanding under the Loan representing advances and any accrued but unpaid interest. As of both periods ended June 30, 2017 and December 31, 2016 , Hertz has a due to affiliate in the amount of $65 million which represents its tax related liability to Hertz Holdings. The above amounts are included in equity in the accompanying condensed consolidated balance sheets of Hertz. |
Earnings (Loss) Per Share - Her
Earnings (Loss) Per Share - Hertz Global | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share - Hertz Global | Earnings (Loss) Per Share - Hertz Global Basic earnings (loss) per share has been computed based upon the weighted average number of common shares outstanding. Diluted earnings (loss) per share has been computed based upon the weighted average number of common shares outstanding plus the effect of all potentially dilutive common stock equivalents, except when the effect would be anti-dilutive. As described in Note 9 , " Stock-Based Compensation ", the Company adopted the 2017 EICP on January 1, 2017. PSU awards issued under the 2017 EICP will be included in the denominator of diluted earnings (loss) per share when the required minimum threshold to receive the awards is met. There are no PSU awards issued under the 2017 EICP included in the computation of diluted earnings (loss) per share during the three and six months ended June 30, 2017 . The following table sets forth the computation of basic and diluted earnings (loss) per share: Three Months Ended Six Months Ended (In millions, except per share data) 2017 2016 2017 2016 Basic and diluted earnings (loss) per share: Numerator: Net income (loss) from continuing operations $ (158 ) $ (28 ) $ (381 ) $ (80 ) Net income (loss) from discontinued operations — (15 ) — (13 ) Net income (loss), basic $ (158 ) $ (43 ) $ (381 ) $ (93 ) Denominator: Basic weighted average common shares 83 85 83 85 Dilutive stock options, RSUs, PSUs and PSAs — — — — Weighted average shares used to calculate diluted earnings per share 83 85 83 85 Antidilutive stock options, RSUs, PSUs and PSAs 3 1 3 2 Earnings (loss) per share: Basic earnings (loss) per share from continuing operations $ (1.90 ) $ (0.33 ) $ (4.59 ) $ (0.94 ) Basic earnings (loss) per share from discontinued operations — (0.18 ) — (0.15 ) Basic earnings (loss) per share $ (1.90 ) $ (0.51 ) $ (4.59 ) $ (1.09 ) Diluted earnings (loss) per share from continuing operations $ (1.90 ) $ (0.33 ) $ (4.59 ) $ (0.94 ) Diluted earnings (loss) per share from discontinued operations — (0.18 ) — (0.15 ) Diluted earnings (loss) per share $ (1.90 ) $ (0.51 ) $ (4.59 ) $ (1.09 ) |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company has identified three reportable segments, which are organized based on the products and services provided by its operating segments and the geographic areas in which its operating segments conduct business, as follows: • U.S. Rental Car ("U.S. RAC") - rental of vehicles (cars, crossovers and light trucks), as well as sales of ancillary products and services, in the United States and consists of the Company's United States operating segment; • International Rental Car ("International RAC") - rental and leasing of vehicles (cars, vans, crossovers and light trucks), as well as sales of ancillary products and services, internationally and consists of the Company's Europe and Other International operating segments, which are aggregated into a reportable segment based primarily upon similar economic characteristics, products and services, customers, delivery methods and general regulatory environments; • All Other Operations - primarily consists of the Company's Donlen business, which provides vehicle leasing and fleet management services, together with other business activities which represent less than 2% of revenues and expenses of the segment. In addition to the above reportable segments, the Company has corporate operations ("Corporate") which includes general corporate assets and expenses and certain interest expense (including net interest on non-vehicle debt). The following tables provide significant statement of operations and balance sheet information by segment for each of Hertz Global and Hertz, as well as adjusted pretax income (loss), the segment measure of profitability. Three Months Ended Six Months Ended (In millions) 2017 2016 2017 2016 Revenues U.S. Rental Car $ 1,519 $ 1,584 $ 2,872 $ 2,990 International Rental Car 543 540 955 973 All Other Operations 162 146 313 290 Total Hertz Global and Hertz $ 2,224 $ 2,270 $ 4,140 $ 4,253 Depreciation of revenue earning vehicles and lease charges, net U.S. Rental Car $ 524 $ 417 $ 1,023 $ 836 International Rental Car 100 98 185 184 All Other Operations 119 114 236 225 Total Hertz Global and Hertz $ 743 $ 629 $ 1,444 $ 1,245 Adjusted pre-tax income (loss) (a) U.S. Rental Car $ (37 ) $ 143 $ (152 ) $ 138 International Rental Car 56 34 52 36 All Other Operations 19 17 39 35 Corporate (120 ) (139 ) (234 ) (262 ) Total Hertz Global (82 ) 55 (295 ) (53 ) Corporate - Hertz 1 — 2 — Total Hertz $ (81 ) $ 55 $ (293 ) $ (53 ) (In millions) June 30, 2017 December 31, 2016 Total Assets U.S. Rental Car $ 13,639 $ 12,876 International Rental Car 4,852 3,578 All other operations 1,646 1,612 Corporate 2,296 1,089 Total Hertz Global and Hertz $ 22,433 $ 19,155 (a) Adjusted pre-tax income (loss), the Company's segment profitability measure, is calculated as income (loss) from continuing operations before income taxes plus non-cash acquisition accounting charges, debt-related charges relating to the amortization and write-off of debt financing costs and debt discounts, intangible and tangible asset impairments and write downs and certain one-time charges and non-operational items. Reconciliation of adjusted pre-tax income (loss) by segment to consolidated amounts are summarized below. Hertz Global Three Months Ended Six Months Ended (In millions) 2017 2016 2017 2016 Adjusted pre-tax income (loss): U.S. Rental Car $ (37 ) $ 143 $ (152 ) $ 138 International Rental Car 56 34 52 36 All Other Operations 19 17 39 35 Total reportable segments 38 194 (61 ) 209 Corporate (1) (120 ) (139 ) (234 ) (262 ) Adjusted pre-tax income (loss) (82 ) 55 (295 ) (53 ) Adjustments: Acquisition accounting (2) (16 ) (18 ) (31 ) (34 ) Debt-related charges (3) (10 ) (12 ) (21 ) (25 ) Loss on extinguishment of debt (4) (8 ) (20 ) (8 ) (20 ) Restructuring and restructuring related charges (5) (5 ) (18 ) (13 ) (29 ) Sale of CAR Inc. common stock (6) — — 3 75 Impairment charges and asset write-downs (7) (86 ) (3 ) (116 ) (3 ) Finance and information technology transformation costs (8) (20 ) (19 ) (39 ) (26 ) Other (9) (18 ) — (19 ) 3 Income (loss) before income taxes $ (245 ) $ (35 ) $ (539 ) $ (112 ) Hertz Three Months Ended Six Months Ended (In millions) 2017 2016 2017 2016 Adjusted pre-tax income (loss): U.S. Rental Car $ (37 ) $ 143 $ (152 ) $ 138 International Rental Car 56 34 52 36 All Other Operations 19 17 39 35 Total reportable segments 38 194 (61 ) 209 Corporate (1) (119 ) (139 ) (232 ) (262 ) Adjusted pre-tax income (loss) (81 ) 55 (293 ) (53 ) Adjustments: Acquisition accounting (2) (16 ) (18 ) (31 ) (34 ) Debt-related charges (3) (10 ) (12 ) (21 ) (25 ) Loss on extinguishment of debt (4) (8 ) (20 ) (8 ) (20 ) Restructuring and restructuring related charges (5) (5 ) (18 ) (13 ) (29 ) Sale of CAR Inc. common stock (6) — — 3 75 Impairment charges and asset write-downs (7) (86 ) (3 ) (116 ) (3 ) Finance and information technology transformation costs (8) (20 ) (19 ) (39 ) (26 ) Other (9) (18 ) — (19 ) 3 Income (loss) before income taxes $ (244 ) $ (35 ) $ (537 ) $ (112 ) (1) Represents general corporate expenses, non-vehicle interest expense, as well as other business activities. (2) Represents incremental expense associated with amortization of other intangible assets and depreciation of property and equipment relating to acquisition accounting. (3) Represents debt-related charges relating to the amortization of deferred financing costs and debt discounts and premiums. (4) In 2017, represents $6 million of early redemption premium and write off of deferred financing costs associated with the redemption of the outstanding 4.25% Senior Notes due April 2018 and a $2 million write-off of deferred financing costs associated with the termination of commitments under the Senior RCF. In 2016, represents the write-off of deferred financing costs in the second quarter as a result of paying off the Senior Term Facility and various vehicle debt refinancings. (5) Represents expenses incurred under restructuring actions as defined in U.S. GAAP, excluding impairments and asset write-downs, when applicable. For further information on restructuring costs, see Note 10 , " Restructuring ." Also represents certain other charges such as incremental costs incurred directly supporting business transformation initiatives. Such costs include transition costs incurred in connection with 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. Also includes consulting costs and legal fees related to the previously disclosed accounting review and investigation. (6) Represents the pre-tax gain on the sale of CAR Inc. common stock. (7) In 2017, primarily represents a second quarter $86 million impairment of the Dollar Thrifty tradename and a first quarter impairment of $30 million related to an equity method investment. (8) Represents external costs associated with the Company’s finance and information technology transformation programs, both of which are multi-year initiatives that commenced in 2016 to upgrade and modernize the Company’s systems and processes. (9) Represents miscellaneous, non-recurring and other non-cash items. In 2017, includes first and second quarter adjustments, as applicable, to the carrying value of the Company's Brazil operations in connection with its classification as held for sale and second quarter charges of $6 million for labor-related matters and $5 million relating to PLPD as a result of a terrorist event. For the six months ended June 30, 2016 , includes a $9 million settlement gain from an eminent domain case related to one of the Company's airport locations. |
Guarantor and Non-Guarantor Con
Guarantor and Non-Guarantor Condensed Consolidating Financial Information - Hertz | 6 Months Ended |
Jun. 30, 2017 | |
Guarantor and Non-Guarantor Condensed Consolidating Financial Statements Disclosure [Abstract] | |
Guarantor and Non-Guarantor Condensed Consolidating Financial Information - Hertz | Guarantor and Non-Guarantor Condensed Consolidating Financial Information - Hertz The following condensed consolidating financial information presents the Condensed Consolidating Balance Sheets as of June 30, 2017 and December 31, 2016 , the Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) for the three and six months ended June 30, 2017 and 2016 and the Statements of Cash Flows for the six months ended June 30, 2017 and 2016 of (a) The Hertz Corporation, ("Parent”); (b) the Parent's subsidiaries that guarantee the Senior Notes issued by the Parent ("Guarantor Subsidiaries"); (c) the Parent's subsidiaries that do not guarantee the Senior Notes issued by the Parent ("Non-Guarantor Subsidiaries"); (d) elimination entries necessary to consolidate the Parent with the Guarantor Subsidiaries and Non-Guarantor Subsidiaries ("Eliminations"); and of (e) Hertz 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. 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 Facilities and Senior Second Priority Secured Notes, and consequently will not be available to satisfy the claims of Hertz's general creditors. In lieu of providing separate unaudited financial statements for the Guarantor Subsidiaries, Hertz has included the accompanying condensed consolidating financial statements based on Rule 3-10 of the SEC's Regulation S-X. Management of Hertz does not believe that separate financial statements of the Guarantor Subsidiaries are material to Hertz's investors; therefore, separate financial statements and other disclosures concerning the Guarantor Subsidiaries are not presented. During the preparation of the condensed consolidating financial information of The Hertz Corporation and Subsidiaries as of and for the three months ended March 31, 2017, it was determined that prepaid expenses and other assets, deferred income taxes, net, due from affiliates and due to affiliates, and the related eliminations at December 31, 2016 as filed in the Company’s 2016 Form 10-K were improperly calculated, resulting in a $915 million overstatement of prepaid expenses and other assets and due to affiliates of the Parent and an overstatement of due from affiliates and deferred income taxes, net of the Guarantor Subsidiaries. The errors, which the Company has determined are not material to this disclosure, had no impact on the net assets of the Parent or the Guarantor Subsidiaries and are eliminated upon consolidation, and therefore have no impact on the Company’s consolidated financial condition, results of operations or cash flows. The Company has revised the Condensed Consolidating Balance Sheets for the Parent, Guarantor Subsidiaries and Eliminations as of December 31, 2016 to correct for these errors. During the preparation of the condensed consolidating financial information of The Hertz Corporation and Subsidiaries as of and for the three and nine months ended September 30, 2016, it was determined that cash flows from operating activities and investing activities for the Parent and Non-Guarantor Subsidiaries were misstated as filed in the Company's second quarter 2016 Form 10-Q, resulting in a $411 million overstatement of net cash used in operating activities and a $411 million overstatement of net cash provided by investing activities of the Parent, and a $411 million overstatement of net cash provided by operating activities and a $411 million overstatement of net cash used in investing activities of the Non-Guarantor Subsidiaries. These errors had no impact to the Guarantor Subsidiaries and no impact to financing activities. These errors, which the Company determined are not material, have no impact on the Company's consolidated financial condition, results of operations, or cash flows. The Company has revised the Condensed Consolidating Statements of Cash Flows for Parent and Guarantor Subsidiaries for the six months ended June 30, 2016 to correct for these errors. THE HERTZ CORPORATION CONDENSED CONSOLIDATING BALANCE SHEET June 30, 2017 (In millions) Parent (The Hertz Corporation) Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations The Hertz Corporation & Subsidiaries ASSETS Cash and cash equivalents $ 841 $ 11 $ 289 $ — $ 1,141 Restricted cash and cash equivalents 888 7 167 — 1,062 Receivables, net of allowance 271 160 779 — 1,210 Due from affiliates 3,400 4,176 9,158 (16,734 ) — Prepaid expenses and other assets 5,410 77 236 (5,158 ) 565 Revenue earning vehicles, net 317 3 12,866 — 13,186 Property and equipment, net 631 65 143 — 839 Investment in subsidiaries, net 6,201 694 — (6,895 ) — Other intangible assets, net 112 3,111 16 — 3,239 Goodwill 102 943 37 — 1,082 Assets held for sale — — 109 — 109 Total assets $ 18,173 $ 9,247 $ 23,800 $ (28,787 ) $ 22,433 LIABILITIES AND EQUITY Due to affiliates $ 10,461 $ 1,990 $ 4,283 $ (16,734 ) $ — Accounts payable 380 97 904 — 1,381 Accrued liabilities 529 90 344 — 963 Accrued taxes, net 86 23 3,225 (3,168 ) 166 Debt 5,800 — 11,009 — 16,809 Public liability and property damage 162 42 219 — 423 Deferred income taxes, net — 2,077 1,836 (1,990 ) 1,923 Liabilities held for sale — — 13 — 13 Total liabilities 17,418 4,319 21,833 (21,892 ) 21,678 Equity: Stockholder's equity 755 4,928 1,967 (6,895 ) 755 Total liabilities and equity $ 18,173 $ 9,247 $ 23,800 $ (28,787 ) $ 22,433 THE HERTZ CORPORATION CONDENSED CONSOLIDATING BALANCE SHEET December 31, 2016 (In millions) Parent (The Hertz Corporation) Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations The Hertz Corporation & Subsidiaries ASSETS Cash and cash equivalents $ 458 $ 12 $ 346 $ — $ 816 Restricted cash and cash equivalents 53 5 220 — 278 Receivables, net of allowance 752 167 364 — 1,283 Due from affiliates 3,668 3,823 9,750 (17,241 ) — Prepaid expenses and other assets 4,821 83 199 (4,525 ) 578 Revenue earning vehicles, net 361 7 10,450 — 10,818 Property and equipment, net 656 70 132 — 858 Investment in subsidiaries, net 6,114 598 — (6,712 ) — Other intangible assets, net 89 3,223 20 — 3,332 Goodwill 102 943 36 — 1,081 Assets held for sale — — 111 — 111 Total assets $ 17,074 $ 8,931 $ 21,628 $ (28,478 ) $ 19,155 LIABILITIES AND EQUITY Due to affiliates $ 10,833 $ 1,900 $ 4,508 $ (17,241 ) $ — Accounts payable 279 90 452 — 821 Accrued liabilities 557 103 320 — 980 Accrued taxes, net 78 18 2,881 (2,812 ) 165 Debt 4,086 — 9,455 — 13,541 Public liability and property damage 166 43 198 — 407 Deferred income taxes, net — 2,065 1,797 (1,713 ) 2,149 Liabilities held for sale — — 17 — 17 Total liabilities 15,999 4,219 19,628 (21,766 ) 18,080 Equity: Stockholder's equity 1,075 4,712 2,000 (6,712 ) 1,075 Total liabilities and equity $ 17,074 $ 8,931 $ 21,628 $ (28,478 ) $ 19,155 THE HERTZ CORPORATION CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) For the Three Months Ended June 30, 2017 (In millions) Parent (The Hertz Corporation) Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations The Hertz Corporation & Subsidiaries Total revenues $ 1,170 $ 354 $ 1,871 $ (1,171 ) $ 2,224 Expenses: Direct vehicle and operating 741 181 333 — 1,255 Depreciation of revenue earning vehicles and lease charges, net 1,024 113 714 (1,108 ) 743 Selling, general and administrative 156 8 59 — 223 Interest expense, net 101 (25 ) 81 — 157 Intangible asset impairments — 86 — — 86 Other (income) expense, net — — 4 — 4 Total expenses 2,022 363 1,191 (1,108 ) 2,468 Income (loss) from continuing operations before income taxes and equity in earnings (losses) of subsidiaries (852 ) (9 ) 680 (63 ) (244 ) Income tax (provision) benefit 358 1 (273 ) — 86 Equity in earnings (losses) of subsidiaries, net of tax 336 30 — (366 ) — Net income (loss) from continuing operations (158 ) 22 407 (429 ) (158 ) Net income (loss) from discontinued operations — — — — — Net income (loss) (158 ) 22 407 (429 ) (158 ) Other comprehensive income (loss), net of tax (7 ) 3 (8 ) 5 (7 ) Comprehensive income (loss) $ (165 ) $ 25 $ 399 $ (424 ) $ (165 ) THE HERTZ CORPORATION CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) For the Three Months Ended June 30, 2016 (In millions) Parent (The Hertz Corporation) Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations The Hertz Corporation & Subsidiaries Total revenues $ 1,192 $ 385 $ 1,636 $ (943 ) $ 2,270 Expenses: Direct vehicle and operating 732 192 343 — 1,267 Depreciation of revenue earning vehicles and lease charges, net 759 214 599 (943 ) 629 Selling, general and administrative 158 11 65 — 234 Interest expense, net 119 (21 ) 76 — 174 Other (income) expense, net 1 (1 ) 1 — 1 Total expenses 1,769 395 1,084 (943 ) 2,305 Income (loss) from continuing operations before income taxes and equity in earnings (losses) of subsidiaries (577 ) (10 ) 552 — (35 ) Income tax (provision) benefit 227 3 (223 ) — 7 Equity in earnings (losses) of subsidiaries, net of tax 307 144 — (451 ) — Net income (loss) from continuing operations (43 ) 137 329 (451 ) (28 ) Net income (loss) from discontinued operations — (4 ) (11 ) — (15 ) Net income (loss) (43 ) 133 318 (451 ) (43 ) Other comprehensive income (loss), net of tax (45 ) (5 ) (23 ) 28 (45 ) Comprehensive income (loss) $ (88 ) $ 128 $ 295 $ (423 ) $ (88 ) THE HERTZ CORPORATION CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) For the Six Months Ended June 30, 2017 (In millions) Parent (The Hertz Corporation) Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations The Hertz Corporation & Subsidiaries Total revenues $ 2,220 $ 661 $ 3,248 $ (1,989 ) $ 4,140 Expenses: Direct vehicle and operating 1,429 350 608 — 2,387 Depreciation of revenue earning vehicles and lease charges, net 1,761 215 1,335 (1,867 ) 1,444 Selling, general and administrative 306 19 117 — 442 Interest expense, net 183 (47 ) 151 — 287 Intangible asset impairments — 86 — — 86 Other (income) expense, net 33 — (2 ) — 31 Total expenses 3,712 623 2,209 (1,867 ) 4,677 Income (loss) from continuing operations before income taxes and equity in earnings (losses) of subsidiaries (1,492 ) 38 1,039 (122 ) (537 ) Income tax (provision) benefit 572 (14 ) (401 ) — 157 Equity in earnings (losses) of subsidiaries, net of tax 540 62 — (602 ) — Net income (loss) from continuing operations (380 ) 86 638 (724 ) (380 ) Net income (loss) from discontinued operations — — — — — Net income (loss) (380 ) 86 638 (724 ) (380 ) Other comprehensive income (loss), net of tax 6 3 4 (7 ) 6 Comprehensive income (loss) $ (374 ) $ 89 $ 642 $ (731 ) $ (374 ) THE HERTZ CORPORATION CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) For the Six Months Ended June 30, 2016 (In millions) Parent (The Hertz Corporation) Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations The Hertz Corporation & Subsidiaries Total revenues $ 2,258 $ 725 $ 2,932 $ (1,662 ) $ 4,253 Expenses: Direct vehicle and operating 1,417 381 627 — 2,425 Depreciation of revenue earning vehicles and lease charges, net 1,380 349 1,177 (1,661 ) 1,245 Selling, general and administrative 304 24 132 (1 ) 459 Interest expense, net 207 (22 ) 140 — 325 Other (income) expense, net 1 (10 ) (80 ) — (89 ) Total expenses 3,309 722 1,996 (1,662 ) 4,365 Income (loss) from continuing operations before income taxes and equity in earnings (losses) of subsidiaries (1,051 ) 3 936 — (112 ) Income tax (provision) benefit 415 (2 ) (381 ) — 32 Equity in earnings (losses) of subsidiaries, net of tax 545 201 — (746 ) — Net income (loss) from continuing operations (91 ) 202 555 (746 ) (80 ) Net income (loss) from discontinued operations — (1 ) (10 ) — (11 ) Net income (loss) (91 ) 201 545 (746 ) (91 ) Other comprehensive income (loss), net of tax 9 (5 ) 29 (24 ) 9 Comprehensive income (loss) $ (82 ) $ 196 $ 574 $ (770 ) $ (82 ) THE HERTZ CORPORATION CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the Six Months Ended June 30, 2017 (In millions) Parent (The Hertz Corporation) Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations The Hertz Corporation & Subsidiaries Net cash provided by (used in) operating activities from continuing operations $ (377 ) $ 15 $ 2,168 $ (822 ) $ 984 Cash flows from investing activities: Net change in restricted cash and cash equivalents, vehicle (1 ) (1 ) 57 — 55 Revenue earning vehicle expenditures (171 ) (5 ) (6,533 ) — (6,709 ) Proceeds from disposal of revenue earning vehicles 91 — 3,744 — 3,835 Capital asset expenditures, non-vehicle (75 ) (5 ) (23 ) — (103 ) Proceeds from disposal of property and other equipment 6 — 5 — 11 Sales of shares in equity investment — — 9 — 9 Other — — (2 ) — (2 ) Capital contributions to subsidiaries (1,419 ) — — 1,419 — Return of capital from subsidiaries 1,898 — — (1,898 ) — Loan to Parent/Guarantor from Non-Guarantor — — 431 (431 ) — Net cash provided by (used in) investing activities from continuing operations 329 (11 ) (2,312 ) (910 ) (2,904 ) Cash flows from financing activities: Net change in restricted cash and cash equivalents, non-vehicle (834 ) (1 ) 1 — (834 ) Proceeds from issuance of vehicle debt 631 — 4,397 — 5,028 Repayments of vehicle debt (657 ) — (3,008 ) — (3,665 ) Proceeds from issuance of non-vehicle debt 2,100 — — — 2,100 Repayments of non-vehicle debt (354 ) — — — (354 ) Payment of financing costs (16 ) (4 ) (14 ) — (34 ) Early redemption premium payment (5 ) — — — (5 ) Advances to Hertz Global (3 ) — — — (3 ) Capital contributions received from parent — — 1,419 (1,419 ) — Payment of dividends and return of capital — — (2,720 ) 2,720 — Loan to Parent/Guarantor from Non-Guarantor (431 ) — — 431 — Net cash provided by (used in) financing activities from continuing operations 431 (5 ) 75 1,732 2,233 Effect of foreign currency exchange rate changes on cash and cash equivalents from continuing operations — — 12 — 12 Net increase (decrease) in cash and cash equivalents during the period from continuing operations 383 (1 ) (57 ) — 325 Cash and cash equivalents at beginning of period 458 12 346 — 816 Cash and cash equivalents at end of period $ 841 $ 11 $ 289 $ — $ 1,141 THE HERTZ CORPORATION CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the Six Months Ended June 30, 2016 (In millions) Parent (The Hertz Corporation) Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations The Hertz Corporation & Subsidiaries Net cash provided by (used in) operating activities from continuing operations $ (1,492 ) $ 37 $ 2,908 $ (439 ) $ 1,014 Cash flows from investing activities: Net change in restricted cash and cash equivalents, vehicle (10 ) (2 ) 30 — 18 Net change in restricted cash and cash equivalents, non-vehicle — — (2 ) — (2 ) Revenue earning vehicle expenditures (176 ) (34 ) (6,677 ) — (6,887 ) Proceeds from disposal of revenue earning vehicles 131 — 4,656 — 4,787 Capital assets expenditures, non-vehicle (41 ) (8 ) (23 ) — (72 ) Proceeds from disposal of property and other equipment 12 3 24 — 39 Sales of shares in equity investment, net of amounts invested (45 ) — 233 — 188 Capital contributions to subsidiaries (514 ) — — 514 — Return of capital from subsidiaries 1,623 — — (1,623 ) — Loan to Parent/Guarantor from Non-Guarantor — — (405 ) 405 — Net cash provided by (used in) investing activities from continuing operations 980 (41 ) (2,164 ) (704 ) (1,929 ) Cash flows from financing activities: Proceeds from issuance of vehicle debt 186 — 5,893 — 6,079 Repayments of vehicle debt (183 ) — (4,895 ) — (5,078 ) Proceeds from issuance of non-vehicle debt 1,477 — — — 1,477 Repayments of non-vehicle debt (2,843 ) — — — (2,843 ) Payment of financing costs (31 ) (3 ) (17 ) — (51 ) Transfers from discontinued entities 2,122 — — — 2,122 Other 11 1 — — 12 Capital contributions received from parent — — 514 (514 ) — Payment of dividends and return of capital — — (2,062 ) 2,062 — Loan to Parent/Guarantor from Non-Guarantor 405 — — (405 ) — Net cash provided by (used in) financing activities from continuing operations 1,144 (2 ) (567 ) 1,143 1,718 Effect of foreign currency exchange rate changes on cash and cash equivalents from continuing operations — — 8 — 8 Net increase (decrease) in cash and cash equivalents during the period from continuing operations 632 (6 ) 185 — 811 Cash and cash equivalents at beginning of period 179 17 278 — 474 Cash and cash equivalents at end of period $ 811 $ 11 $ 463 $ — $ 1,285 Cash flows from discontinued operations: Cash flows provided by (used in) operating activities $ — $ 59 $ 148 $ — $ 207 Cash flows provided by (used in) investing activities — (75 ) (2 ) — (77 ) Cash flows provided by (used in) financing activities — 44 (138 ) — (94 ) Net increase (decrease) in cash and cash equivalents during the period from discontinued operations $ — $ 28 $ 8 $ — $ 36 |
Basis of Presentation and Rec24
Basis of Presentation and Recently Issued Accounting Pronouncements (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of Consolidation | Principles of Consolidation The unaudited condensed consolidated financial statements of Hertz Global include the accounts of Hertz Global and its wholly owned and majority owned U.S. and international subsidiaries. The unaudited condensed consolidated financial statements of Hertz include the accounts of Hertz and its wholly owned and majority owned U.S. and international subsidiaries. In the event that the Company is a primary beneficiary of a variable interest entity, the assets, liabilities, and results of operations of the variable interest entity are included in the Company's consolidated financial statements. The Company accounts for its investment in joint ventures using the equity method when it has significant influence but not control and is not the primary beneficiary. All significant intercompany transactions have been eliminated in consolidation. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Adopted Improvements to Employee Share-Based Payment Accounting In March 2016, the FASB issued guidance that simplifies several areas of employee share-based payment accounting, including income taxes, forfeitures, minimum statutory withholding requirements, and classifications within the statement of cash flows. Most significantly, the new guidance eliminates the need to track tax “windfalls” in a separate pool within additional paid-in capital; instead, excess tax benefits and tax deficiencies will be recorded within income tax expense. The Company adopted this guidance in accordance with the effective date on January 1, 2017. The method of adoption with respect to the condensed consolidated balance sheet was a modified retrospective basis. Upon adoption, the Company recorded a deferred tax asset with an offsetting entry to the opening accumulated deficit to recognize net operating loss carryforwards, net of a valuation allowance, attributable to excess tax benefits on stock compensation that had not been previously recognized. Additionally, the Company has elected to continue to estimate forfeitures expected to occur. The impact to the condensed consolidated opening balance sheet as of January 1, 2017 of adopting this guidance was as follows (in millions): Hertz Global Deferred income taxes, net Total liabilities Accumulated deficit Total equity Total liabilities and equity As of December 31, 2016 $ 2,149 $ 18,080 $ (882 ) $ 1,075 $ 19,155 Record deferred tax asset (49 ) (49 ) 49 49 — As of January 1, 2017 $ 2,100 $ 18,031 $ (833 ) $ 1,124 $ 19,155 Hertz Deferred income taxes, net Total liabilities Accumulated deficit Total equity Total liabilities and equity As of December 31, 2016 $ 2,149 $ 18,080 $ (1,867 ) $ 1,075 $ 19,155 Record deferred tax asset (49 ) (49 ) 49 49 — As of January 1, 2017 $ 2,100 $ 18,031 $ (1,818 ) $ 1,124 $ 19,155 The method of adoption with respect to the condensed consolidated statement of operations and the condensed consolidated statements of cash flows pertaining to excess tax benefits or deficiencies is on a prospective basis. The method of adoption with respect to the condensed consolidated statements of cash flows pertaining to employee taxes paid is on a retrospective basis and adoption of the guidance did not impact the Company's cash flows. Classification of Certain Cash Receipts and Cash Payments In August 2016, the FASB issued guidance that addresses the treatment of certain transactions in statements of cash flows, with the objective of reducing the existing diversity in practice in how certain cash receipts and cash payments are presented and classified. These items include debt prepayment or debt extinguishment costs, proceeds from the settlement of life insurance claims, proceeds from the settlement of corporate-owned life insurance policies, and distributions received from equity method investees. The Company adopted this guidance early, as permitted, on a retrospective basis, on January 1, 2017. Adoption of this guidance did not impact the Company’s financial position, results of operations or cash flows. Accounting for Goodwill Impairment In January 2017, the FASB issued guidance that eliminates the second step of the two-step goodwill impairment test, which requires the determination of the implied fair value of goodwill to measure an impairment. Rather, a goodwill impairment charge will be calculated as the amount by which a reporting unit's carrying amount exceeds its fair value. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The Company adopted this guidance early, as permitted, on a prospective basis, on January 1, 2017. Adoption of this guidance did not impact the Company’s financial position, results of operations or cash flows. Scope of Modification Accounting for Share-Based Payment Awards In May 2017, the FASB issued guidance that amends the scope of modification accounting for share-based payment arrangements. The guidance describes the types of changes to the terms or conditions of share-based payment awards where modification accounting is required to be applied. Modification accounting is not required if the fair value, vesting conditions and classification of the awards are the same immediately before and after the modification. The Company adopted this guidance early, as permitted, on a prospective basis, on April 1, 2017. Adoption of this guidance did not impact the Company’s financial position, results of operations or cash flows. Not Yet Adopted Revenue from Contracts with Customers In May 2014, the FASB issued guidance that will replace most existing revenue recognition guidance in U.S. GAAP. The new guidance applies to all contracts with customers except for leases, insurance contracts, financial instruments, certain nonmonetary exchanges and certain guarantees. The core principle of the guidance is that an entity should recognize revenue from customers for the transfer of goods or services equal to the amount that it expects to be entitled to receive for those goods or services. Also, additional disclosures are required about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments. The FASB has issued several amendments and updates to the new revenue standard (collectively, “Topic 606”), including guidance related to when an entity should recognize revenue gross as a principal or net as an agent and how an entity should identify performance obligations. As amended, Topic 606 is effective for annual and interim periods beginning after December 15, 2017, with early adoption permitted, and allows for full retrospective adoption applied to all periods presented or a modified retrospective adoption with the cumulative effect of initially applying the new guidance as an adjustment to the opening balance of retained earnings recognized at the date of initial application. The Company intends to adopt Topic 606 when effective on January 1, 2018 using a modified retrospective approach applied to all contracts. Prior periods will not be retrospectively adjusted. The Company has reached conclusions on several key accounting assessments related to its revenue recognition, however, it is still finalizing its assessment and quantifying the impacts that adoption of Topic 606 will have on the accounting for its loyalty programs, such as Hertz Gold Plus Rewards, as further described below. The Company is still in the process of determining the level of disaggregated revenue information that it will include in its disclosures and continues to evaluate its internal controls over financial reporting to ensure that controls are in place to prevent or detect material misstatements to the consolidated financial statements upon adoption of Topic 606. Vehicle Rental Operations The Company has concluded that revenue earned by operations for the rental of vehicles and from other forms of rental related activities wherein an identified asset is transferred to the customer and the customer has the ability to control that asset is outside of the scope of Topic 606 and will be evaluated under the new lease guidance described in more detail in the “Leases” disclosure below. Recognition of revenue from other forms of rental related activities that represent a service will not be materially impacted by adoption of Topic 606. The Company is still in the process of evaluating the breakdown of its vehicle rental revenues into lease and non-lease components. Recognition of revenue earned through the licensing of the Hertz, Dollar and Thrifty brands under franchise agreements (“franchise fees”) is expected to remain consistent with current revenue recognition guidance except for initial and renewal franchise fees. Currently, initial franchise fees are recorded as deferred income when received and are recognized as revenue when all material upfront services and conditions related to the franchise fee have been substantially performed and renewal franchise fees are recognized as revenue when the license agreements are effective and collectability is reasonably assured. Upon adoption, revenue from initial and renewal franchise fees that relate to a future contract term, for franchises in effect as of January 1, 2018, will be deferred and recognized over the remaining contract term. However, this amount will not be material. The Company believes that the most significant impact relates to its accounting for reward points earned by customers under its loyalty programs. Upon adoption of Topic 606, each transaction which generates reward points will result in the deferral of revenue equivalent to the retail value of the redemption of the loyalty reward points. The associated revenue will be recognized at the time the customer redeems the loyalty reward points. Under the current guidance, there is no revenue deferral and the Company records an expense associated with the incremental cost of providing the future rental at the time when the reward points are earned. The Company is in the process of quantifying the impact of adoption of Topic 606. Fleet Leasing and Management Operations The Company has concluded that revenue earned by operations for the leasing of vehicles and from other forms of rental related activities wherein an identified asset is transferred to the customer and the customer has the ability to control that asset is outside of the scope of Topic 606 and will be evaluated under the new lease guidance described in more detail in the “Leases” disclosure below. Administration fees and service revenue attributable to the Company's Donlen operations will not be materially impacted by adoption of Topic 606. Leases In February 2016, the FASB issued guidance that replaces the existing lease guidance in U.S. GAAP. The new guidance establishes a right-of-use (“ROU”) model that requires a lessee to record on the balance sheet a ROU asset and corresponding lease liability based on the present value of future lease payments for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. This guidance also expands the requirements for lessees to record leases embedded in other arrangements. Additionally, enhanced quantitative and qualitative disclosures surrounding leases are required which provide financial statement users the ability to assess the amount, timing and uncertainty of cash flows arising from leases. This guidance is effective for annual periods beginning after December 15, 2018 and interim periods within those annual periods with early adoption permitted. A modified retrospective transition approach is required for both lessees and lessors for existing leases at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The Company is still in the process of evaluating whether to avail itself of allowable practicable expedients during transition. Lessee Adoption of this guidance will result in a material increase in the Company's lease-related assets and liabilities on its balance sheet, primarily for leases of rental locations and other assets. Additionally, adoption of this guidance will impact the statement of cash flows with respect to the presentation of the Company's operating activities, but is not expected to impact its presentation of investing or financing activities. Adoption of this guidance is not expected to have a material impact on the Company’s results of operations. The Company has reached conclusions on key accounting assessments related to its leases and is performing an analysis of its lease portfolio to ensure proper application of the new guidance including implementation of internal controls over financial reporting. Lessor The Company has concluded that revenue earned by operations for the rental and leasing of vehicles and from other forms of rental related activities wherein an identified asset is transferred to the customer and the customer has the ability to control that asset is within the scope of this guidance and that additional disclosures regarding lease revenue are required upon adoption. There is no impact to the nature, timing or recognition of rental lease revenue upon adoption of this guidance. Recognition and Measurement of Financial Assets and Financial Liabilities In January 2016, the FASB issued guidance that makes several changes to the manner in which financial assets and liabilities are accounted for, including, among other things, a requirement to measure most equity investments at fair value with changes in fair value recognized in net income (with the exception of investments that are consolidated or accounted for using the equity method or a fair value practicability exception), and amends certain disclosure requirements related to fair value measurements and financial assets and liabilities. This guidance is effective for annual periods beginning after December 15, 2017 and interim periods within those annual periods using a modified retrospective transition method for most of the requirements. Based on current operations, adoption of this guidance is not expected to impact the Company’s financial position, results of operations or cash flows. Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued guidance that sets forth a current expected credit loss impairment model for financial assets, which replaces the current incurred loss model. This model requires a financial asset (or group of financial assets), including trade receivables, measured at amortized cost to be presented at the net amount expected to be collected with an allowance for credit losses deducted from the amortized cost basis. The allowance for credit losses should reflect management’s current estimate of credit losses that are expected to occur over the remaining life of a financial asset. This guidance is effective for annual periods beginning after December 15, 2019 and interim periods within those annual periods using a modified retrospective transition method. Based on current operations, adoption of this guidance is not expected to impact the Company's financial position, results of operations or cash flows. Tax Consequences of Intra-Entity Transfers of Assets Other Than Inventory In October 2016, the FASB issued guidance that requires the tax consequences of intra-entity asset transfers, other than intra-entity asset transfers of inventory, to be recognized when the transfers occur although the profits on the sales of the assets are eliminated in consolidation. Current guidance requires the tax effects of the transfer be recognized later when the assets are sold to a third party or otherwise disposed of. Under the new guidance, the seller's tax expense on the profit and the buyer's deferred tax benefit on the increased tax basis are recognized within the consolidated group when the transfers occur. The guidance is effective for annual periods beginning after December 15, 2017 and interim periods within those annual periods using a modified retrospective transition method. Based on current operations, adoption of this guidance is not expected to have a material impact on the Company's financial position, results of operations, and cash flows. Restricted Cash In November 2016, the FASB issued guidance that clarifies existing guidance on the classification and presentation of restricted cash in the statement of cash flows. The guidance requires entities to include restricted cash and restricted cash equivalents in its cash and cash equivalents balances in the statement of cash flows. Under current guidance, the Company presents these transfers within the cash flows from investing and financing sections in its consolidated statements of cash flows. The guidance is effective for annual periods beginning after December 15, 2017 and interim periods within those annual periods using a retrospective transition method. Adoption of this guidance will impact the reconciliation of the beginning-of-period and end-of-period total amounts shown on the Company's statement of cash flows. For the six months ended June 30, 2017, the amount of cash and cash equivalents as presented on the statement of cash flows will increase by $1.1 billion . Additionally, transfers between restricted and unrestricted cash will no longer be a component of the Company's investing or financing activities. Clarifying the Definition of a Business In January 2017, the FASB issued guidance that clarifies the definition of a business to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The guidance requires an evaluation of whether substantially all of the fair value of assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets. If so, the transaction does not qualify as a business. The guidance also requires an acquired business to include at least one substantive process and narrows the definition of outputs. The guidance is effective for annual periods beginning after December 15, 2017 and interim periods within those annual periods using a prospective transition method. Based on current operations, adoption of this guidance is not expected to impact the Company's financial position, results of operations or cash flows. Clarifying the Scope of Nonfinancial Asset Derecognition and Accounting for Partial Sales of Nonfinancial Assets In February 2017, the FASB issued guidance that clarifies the scope of the established guidance on nonfinancial asset derecognition as well as the accounting for partial sales of nonfinancial assets. The guidance is effective for annual reporting periods beginning after December 15, 2017 and interim periods within those annual periods. The new guidance may be adopted on either a full or modified retrospective basis. Based on current operations, adoption of this guidance is not expected to impact the Company's financial position, results of operations or cash flows. Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost In March 2017, the FASB issued guidance that requires entities to (1) disaggregate the current-service-cost component from the other components of net benefit cost (the “other components”) and present the current-service-cost component with other current compensation costs for related employees in the income statement and (2) present the other components elsewhere in the income statement and outside of income from operations if such a subtotal is presented. The guidance also requires entities to disclose the income statement lines that contain the other components if they are not presented on described separate lines. In addition, only the service-cost component of net benefit cost is eligible for capitalization, which is a change from current practice, under which entities capitalize the aggregate net benefit cost when applicable. The guidance is effective for annual reporting periods beginning after December 15, 2017 and interim periods within those annual periods. The guidance affecting the presentation of the components of net periodic benefit cost in the income statement requires use of the retrospective method of adoption and the guidance limiting the capitalization of net periodic benefit cost to the service cost component requires use of the prospective method of adoption. Adoption of this guidance will result in a reclassification of certain amounts from direct vehicle and operating expense and selling, general and administrative expense to other (income) expense, net which does not impact the Company's financial position, results of operations or cash flows. The Company does not expect the reclassified amounts to be material. |
Basis of Presentation and Rec25
Basis of Presentation and Recently Issued Accounting Pronouncements (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The impact to the condensed consolidated opening balance sheet as of January 1, 2017 of adopting this guidance was as follows (in millions): Hertz Global Deferred income taxes, net Total liabilities Accumulated deficit Total equity Total liabilities and equity As of December 31, 2016 $ 2,149 $ 18,080 $ (882 ) $ 1,075 $ 19,155 Record deferred tax asset (49 ) (49 ) 49 49 — As of January 1, 2017 $ 2,100 $ 18,031 $ (833 ) $ 1,124 $ 19,155 Hertz Deferred income taxes, net Total liabilities Accumulated deficit Total equity Total liabilities and equity As of December 31, 2016 $ 2,149 $ 18,080 $ (1,867 ) $ 1,075 $ 19,155 Record deferred tax asset (49 ) (49 ) 49 49 — As of January 1, 2017 $ 2,100 $ 18,031 $ (1,818 ) $ 1,124 $ 19,155 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | The following table summarizes the results of the equipment rental business and certain parent legal entities which are presented as discontinued operations in 2016: Three Months Ended Six Months Ended (In millions) 2016 2016 Total revenues $ 349 $ 677 Direct operating expenses 182 366 Depreciation of revenue earning equipment and lease charges, net 91 181 Selling, general and administrative 81 123 Interest expense, net (1) 11 17 Other (income) expense, net — (1 ) Income (loss) from discontinued operations before income taxes (16 ) (9 ) (Provision) benefit for taxes on discontinued operations 1 (4 ) Net income (loss) from discontinued operations $ (15 ) $ (13 ) (1) In addition to interest expense directly associated with Herc Holdings, the Company allocated interest expense related to certain debt repaid in connection with the Spin-Off to discontinued operations. For the three months ended June 30, 2016 , the amount allocated was $3 million . For the six months ended June 30, 2016 , the amount allocated was $5 million . Results of Discontinued Operations - Hertz The following table summarizes the results of the equipment rental business which is presented as discontinued operations in 2016: Three Months Ended Six Months Ended (In millions) 2016 2016 Total revenues $ 349 $ 677 Direct operating expenses 182 366 Depreciation of revenue earning equipment and lease charges, net 91 181 Selling, general and administrative 82 124 Interest expense, net (1) 10 13 Other (income) expense, net — (1 ) Income (loss) from discontinued operations before income taxes (16 ) (6 ) (Provision) benefit for taxes on discontinued operations 1 (5 ) Net income (loss) from discontinued operations $ (15 ) $ (11 ) (1) In addition to interest expense directly associated with Herc Holdings, the Company allocated interest expense related to certain debt repaid in connection with the Spin-Off to discontinued operations. For the three months ended June 30, 2016 , the amount allocated was $3 million . For the six months ended June 30, 2016 , the amount allocated was $5 million . |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Business Combinations and Divestitures [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | The carrying amounts of the major classes of assets and liabilities of the Brazil Operations are as follows: (In millions) June 30, 2017 December 31, 2016 ASSETS Cash and cash equivalents $ 4 $ 1 Receivables, net 12 11 Prepaid expenses and other assets 3 5 Revenue earning vehicles, net 81 86 Property and equipment, net 1 1 Intangibles 2 1 Deferred income taxes, net 6 6 Assets held for sale $ 109 $ 111 LIABILITIES Accounts payable $ 6 $ 11 Accrued liabilities 7 6 Liabilities held for sale $ 13 $ 17 |
Revenue Earning Vehicles (Table
Revenue Earning Vehicles (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Revenue Earning Vehicles [Abstract] | |
Components of Revenue Earning Vehicles | The components of revenue earning vehicles, net are as follows: (In millions) June 30, 2017 December 31, 2016 Revenue earning vehicles $ 15,739 $ 13,287 Less: Accumulated depreciation (2,843 ) (2,678 ) 12,896 10,609 Revenue earning vehicles held for sale, net 290 209 Revenue earning vehicles, net $ 13,186 $ 10,818 |
Depreciation on Revenue Earning Vehicles and Lease Charges | Depreciation of revenue earning vehicles and lease charges, net includes the following: Three Months Ended Six Months Ended (In millions) 2017 2016 2017 2016 Depreciation of revenue earning vehicles $ 660 $ 576 $ 1,265 $ 1,135 (Gain) loss on disposal of revenue earning vehicles (a) 66 35 145 77 Rents paid for vehicles leased 17 18 34 33 Depreciation of revenue earning vehicles and lease charges, net $ 743 $ 629 $ 1,444 $ 1,245 (a) (Gain) loss on disposal of revenue earning vehicles by segment is as follows: Three Months Ended Six Months Ended (In millions) 2017 2016 2017 2016 U.S. Rental Car (i) $ 67 $ 38 $ 145 $ 81 International Rental Car (1 ) (3 ) — (4 ) Total $ 66 $ 35 $ 145 $ 77 |
Impact of Depreciation Rate Changes | 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 for the vehicles. The impact of depreciation rate changes is as follows: Increase (decrease) Three Months Ended Six Months Ended (In millions) 2017 2016 2017 2016 U.S. Rental Car (a) $ 36 $ 19 $ 62 $ 45 International Rental Car 1 1 1 2 Total $ 37 $ 20 $ 63 $ 47 (a) The depreciation rate changes in the U.S. Rental Car operations for the three and six months ended June 30, 2017 include a net increase in depreciation expense of $24 million based on the review completed during the second quarter of 2017 . The depreciation rate changes in the U.S. Rental Car operations for the three and six months ended June 30, 2016 include a net increase in depreciation expense of $12 million based on the review completed during the second quarter of 2016 . |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Components of debt | The Company's debt, including its available credit facilities, consists of the following (in millions): Facility Weighted Average Interest Rate at June 30, 2017 Fixed or Maturity June 30, December 31, Non-Vehicle Debt Senior Term Loan 3.98% Floating 6/2023 $ 693 $ 697 Senior RCF 4.41% Floating 6/2021 750 — Senior Notes (1) 6.22% Fixed 4/2019–10/2024 2,950 3,200 Senior Second Priority Secured Notes 7.63% Fixed 6/2022 1,250 — Promissory Notes 7.00% Fixed 1/2028 27 27 Other Non-Vehicle Debt 1.98% Fixed Various 9 10 Unamortized Debt Issuance Costs and Net (Discount) Premium (46 ) (39 ) Total Non-Vehicle Debt 5,633 3,895 Vehicle Debt HVF U.S. Vehicle Medium Term Notes HVF Series 2010-1 (2) 4.96% Fixed 2/2018 115 115 HVF Series 2011-1 (2) N/A N/A N/A — 115 HVF Series 2013-1 (2) 1.91% Fixed 8/2018 625 625 740 855 HVF II U.S. ABS Program HVF II U.S. Vehicle Variable Funding Notes HVF II Series 2013-A (2) 2.39% Floating 1/2019 3,223 1,844 HVF II Series 2013-B (2) 2.34% Floating 1/2019 268 626 HVF II Series 2017-A (2) N/A Floating 10/2018 — — 3,491 2,470 HVF II U.S. Vehicle Medium Term Notes HVF II Series 2015-1 (2) 2.93% Fixed 3/2020 780 780 HVF II Series 2015-2 (2) 2.30% Fixed 9/2018 250 250 HVF II Series 2015-3 (2) 2.96% Fixed 9/2020 350 350 HVF II Series 2016-1 (2) 2.72% Fixed 3/2019 439 439 HVF II Series 2016-2 (2) 3.25% Fixed 3/2021 561 561 HVF II Series 2016-3 (2) 2.56% Fixed 7/2019 400 400 HVF II Series 2016-4 (2) 2.91% Fixed 7/2021 400 400 3,180 3,180 Donlen ABS Program HFLF Variable Funding Notes HFLF Series 2013-2 (2) 2.11% Floating 9/2018 150 410 150 410 Facility Weighted Average Interest Rate at June 30, 2017 Fixed or Maturity June 30, December 31, HFLF Medium Term Notes HFLF Series 2013-3 (5) N/A N/A N/A — 96 HFLF Series 2014-1 (5) 2.06% Floating 7/2017-12/2017 82 148 HFLF Series 2015-1 (5) 1.84% Floating 7/2017-8/2019 198 248 HFLF Series 2016-1 (5) 2.35% Both 7/2017-2/2019 387 385 HFLF Series 2017-1 (5) 2.18% Both 6/2018-5/2020 500 — 1,167 877 Other Vehicle Debt U.S. Vehicle RCF (3) 3.55% Floating 6/2021 168 193 European Revolving Credit Facility 2.75% Floating 1/2019 284 147 European Vehicle Notes (4) 4.29% Fixed 1/2019–10/2021 740 677 European Securitization (2) 1.55% Floating 10/2018 454 312 Canadian Securitization (2) 2.19% Floating 1/2019 268 162 Australian Securitization (2) 3.12% Floating 7/2018 122 117 New Zealand RCF 4.30% Floating 9/2018 35 41 Capitalized Leases 2.74% Floating 7/2017–4/2021 412 244 2,483 1,893 Unamortized Debt Issuance Costs and Net (Discount) Premium (35 ) (39 ) Total Vehicle Debt 11,176 9,646 Total Debt $ 16,809 $ 13,541 N/A - Not Applicable (1) References to the "Senior Notes" include the series of Hertz's unsecured senior notes set forth on the table below. Outstanding principal amounts for each such series of the Senior Notes is also specified below: (In millions) Outstanding Principal Senior Notes June 30, 2017 December 31, 2016 4.25% Senior Notes due April 2018 $ — $ 250 6.75% Senior Notes due April 2019 450 450 5.875% Senior Notes due October 2020 700 700 7.375% Senior Notes due January 2021 500 500 6.25% Senior Notes due October 2022 500 500 5.50% Senior Notes due October 2024 800 800 $ 2,950 $ 3,200 (2) Maturity reference is to the earlier "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) Approximately $67 million of the aggregate maximum borrowing capacity under the U.S. Vehicle RCF is scheduled to expire in January 2018 . (4) References to the "European Vehicle Notes" include the series of Hertz Holdings Netherlands B.V.'s, an indirect wholly-owned subsidiary of Hertz organized under the laws of The Netherlands (“HHN BV”), unsecured senior notes (converted from Euros to U.S. dollars at a rate of 1.14 to 1 and 1.04 to 1 as of June 30, 2017 and December 31, 2016 , respectively) set forth on the table below. Outstanding principal amounts for each such series of the European Vehicle Notes is also specified below: (In millions) Outstanding Principal European Vehicles Notes June 30, 2017 December 31, 2016 4.375% Senior Notes due January 2019 (€425 million aggregate principal amount) $ 484 $ 443 4.125% Senior Notes due October 2021 (€225 million aggregate principal amount) 256 234 $ 740 $ 677 (5) In the case of the Hertz Fleet Lease Funding LP ("HFLF") Medium Term Notes, such notes are repayable from cash flows derived from third-party leases comprising the underlying HFLF collateral pool. The initial maturity date referenced for each series of HFLF Medium Term Notes represents the end of the revolving period for such series, at which time the related notes begin to amortize monthly by an amount equal to the lease collections payable to that series. To the extent the revolving period already has ended, the initial maturity date reflected is July 2017. The second maturity date referenced for each series of HFLF Medium Term Notes represents the date by which Hertz and the investors in the related series expect such series of notes to be repaid in full, which is based upon various assumptions made at the time of pricing of such notes, including the contractual amortization of the underlying leases as well as the assumed rate of prepayments of such leases. Such maturity reference is to the “expected final maturity date” as opposed to the subsequent “legal final maturity date”. The legal final maturity date is the date on which the relevant indebtedness is legally due and payable. Although the underlying lease cash flows that support the repayment of the HFLF Medium Term Notes may vary, the cash flows generally are expected to approximate a straight line amortization of the related notes from the initial maturity date through the expected final maturity date. The fair value of debt is estimated based on quoted market rates as well as borrowing rates currently available to the Company for loans with similar terms and average maturities (Level 2 inputs). As of June 30, 2017 As of December 31, 2016 (In millions) Nominal Unpaid Principal Balance Aggregate Fair Value Nominal Unpaid Principal Balance Aggregate Fair Value Non-vehicle Debt $ 5,679 $ 5,401 $ 3,934 $ 3,791 Vehicle Debt 11,211 11,190 9,685 9,670 Total $ 16,890 $ 16,591 $ 13,619 $ 13,461 |
Schedule of facilities available for the use of the company and its subsidiaries | The following facilities were available to the Company as of June 30, 2017 , and are presented net of any outstanding letters of credit: (In millions) Remaining Capacity Availability Under Borrowing Base Limitation Non-Vehicle Debt Senior RCF $ 9 $ 9 Total Non-Vehicle Debt 9 9 Vehicle Debt U.S. Vehicle RCF 32 10 HVF II U.S. Vehicle Variable Funding Notes 674 20 HFLF Variable Funding Notes 350 — European Revolving Credit Facility — — European Securitization 69 — Canadian Securitization — — Australian Securitization 70 — Capitalized Leases — — New Zealand RCF 9 — Total Vehicle Debt 1,204 30 Total $ 1,213 $ 39 |
Schedule of corporate leverage ratio | The amended financial covenant provides that Hertz’s consolidated first lien net leverage ratio, as defined in the Senior RCF Credit Agreement, as of the last day of any fiscal quarter (the "Covenant Leverage Ratio"), may not exceed the ratios indicated below: Fiscal Quarter(s) Ending Maximum Ratio June 30, 2017 3.25 to 1.00 September 30, 2017 3.25 to 1.00 December 31, 2017 and each March 31, June 30, September 30 and December 31 ending thereafter 3.00 to 1.00 |
Employee Retirement Benefits (T
Employee Retirement Benefits (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Retirement Benefits [Abstract] | |
Schedule of Net Benefit Costs | The following tables sets forth the net periodic pension expense: Pension Benefits U.S. Non-U.S. Three Months Ended June 30, (In millions) 2017 2016 2017 2016 Components of Net Periodic Benefit Cost: Service cost $ — $ — $ 1 $ 1 Interest cost 6 7 1 2 Expected return on plan assets (7 ) (7 ) (3 ) (3 ) Net amortizations 1 1 1 — Net periodic pension expense (benefit) $ — $ 1 $ — $ — Pension Benefits U.S. Non-U.S. Six Months Ended June 30, (In millions) 2017 2016 2017 2016 Components of Net Periodic Benefit Cost: Service cost $ — $ 1 $ 1 $ 1 Interest cost 11 11 3 4 Expected return on plan assets (13 ) (14 ) (5 ) (6 ) Net amortizations 2 4 1 — Settlement loss 1 1 — — Net periodic pension expense (benefit) $ 1 $ 3 $ — $ (1 ) |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan | A summary of the total compensation expense and associated income tax benefits recognized under all plans, including the cost of stock options, RSUs, PSUs and PSAs is as follows: Three Months Ended Six Months Ended (In millions) 2017 2016 2017 2016 Compensation expense $ 5 $ 6 $ 12 $ 12 Income tax benefit (2 ) (2 ) (5 ) (5 ) Total $ 3 $ 4 $ 7 $ 7 |
Restructuring (Tables)
Restructuring (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | Restructuring charges for the periods shown are as follows: Three Months Ended Six Months Ended (In millions) 2017 2016 2017 2016 By Type: Termination benefits $ 2 $ 10 $ 3 $ 16 Impairments and asset write-downs — 3 — 3 Facility closure and lease obligation costs — 5 — 5 Total $ 2 $ 18 $ 3 $ 24 Three Months Ended Six Months Ended (In millions) 2017 2016 2017 2016 By Caption: Direct vehicle and operating $ — $ 8 $ — $ 9 Selling, general and administrative 2 10 3 15 Total $ 2 $ 18 $ 3 $ 24 Three Months Ended Six Months Ended (In millions) 2017 2016 2017 2016 By Segment: U.S. Rental Car $ 1 $ 15 $ 1 $ 21 International Rental Car — 3 1 3 Corporate 1 — 1 — Total $ 2 $ 18 $ 3 $ 24 |
Schedule of Restructuring Reserve by Type of Cost | The following table sets forth the activity during the six months ended June 30, 2017 affecting the restructuring accrual, which is included in accrued liabilities in the accompanying condensed consolidated balance sheets. The Company expects to pay the remaining restructuring obligations relating to termination benefits within the next two years. Other is primarily comprised of future lease obligations which will be paid over the remaining term of the applicable leases. (In millions) Termination Other Total Balance as of December 31, 2016 $ 13 $ 14 $ 27 Charges incurred 3 — 3 Cash payments (4 ) (2 ) (6 ) Balance as of June 30, 2017 $ 12 $ 12 $ 24 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Cash, Cash Equivalents and Investments | The following table summarizes the ending balances of the Company's cash equivalents and investments: June 30, 2017 December 31, 2016 (In millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Money market funds $ 72 $ 476 $ — $ 548 $ 213 $ 393 $ — $ 606 Equity and other securities — — — — 9 — — 9 Total $ 72 $ 476 $ — $ 548 $ 222 $ 393 $ — $ 615 |
Components of debt | The Company's debt, including its available credit facilities, consists of the following (in millions): Facility Weighted Average Interest Rate at June 30, 2017 Fixed or Maturity June 30, December 31, Non-Vehicle Debt Senior Term Loan 3.98% Floating 6/2023 $ 693 $ 697 Senior RCF 4.41% Floating 6/2021 750 — Senior Notes (1) 6.22% Fixed 4/2019–10/2024 2,950 3,200 Senior Second Priority Secured Notes 7.63% Fixed 6/2022 1,250 — Promissory Notes 7.00% Fixed 1/2028 27 27 Other Non-Vehicle Debt 1.98% Fixed Various 9 10 Unamortized Debt Issuance Costs and Net (Discount) Premium (46 ) (39 ) Total Non-Vehicle Debt 5,633 3,895 Vehicle Debt HVF U.S. Vehicle Medium Term Notes HVF Series 2010-1 (2) 4.96% Fixed 2/2018 115 115 HVF Series 2011-1 (2) N/A N/A N/A — 115 HVF Series 2013-1 (2) 1.91% Fixed 8/2018 625 625 740 855 HVF II U.S. ABS Program HVF II U.S. Vehicle Variable Funding Notes HVF II Series 2013-A (2) 2.39% Floating 1/2019 3,223 1,844 HVF II Series 2013-B (2) 2.34% Floating 1/2019 268 626 HVF II Series 2017-A (2) N/A Floating 10/2018 — — 3,491 2,470 HVF II U.S. Vehicle Medium Term Notes HVF II Series 2015-1 (2) 2.93% Fixed 3/2020 780 780 HVF II Series 2015-2 (2) 2.30% Fixed 9/2018 250 250 HVF II Series 2015-3 (2) 2.96% Fixed 9/2020 350 350 HVF II Series 2016-1 (2) 2.72% Fixed 3/2019 439 439 HVF II Series 2016-2 (2) 3.25% Fixed 3/2021 561 561 HVF II Series 2016-3 (2) 2.56% Fixed 7/2019 400 400 HVF II Series 2016-4 (2) 2.91% Fixed 7/2021 400 400 3,180 3,180 Donlen ABS Program HFLF Variable Funding Notes HFLF Series 2013-2 (2) 2.11% Floating 9/2018 150 410 150 410 Facility Weighted Average Interest Rate at June 30, 2017 Fixed or Maturity June 30, December 31, HFLF Medium Term Notes HFLF Series 2013-3 (5) N/A N/A N/A — 96 HFLF Series 2014-1 (5) 2.06% Floating 7/2017-12/2017 82 148 HFLF Series 2015-1 (5) 1.84% Floating 7/2017-8/2019 198 248 HFLF Series 2016-1 (5) 2.35% Both 7/2017-2/2019 387 385 HFLF Series 2017-1 (5) 2.18% Both 6/2018-5/2020 500 — 1,167 877 Other Vehicle Debt U.S. Vehicle RCF (3) 3.55% Floating 6/2021 168 193 European Revolving Credit Facility 2.75% Floating 1/2019 284 147 European Vehicle Notes (4) 4.29% Fixed 1/2019–10/2021 740 677 European Securitization (2) 1.55% Floating 10/2018 454 312 Canadian Securitization (2) 2.19% Floating 1/2019 268 162 Australian Securitization (2) 3.12% Floating 7/2018 122 117 New Zealand RCF 4.30% Floating 9/2018 35 41 Capitalized Leases 2.74% Floating 7/2017–4/2021 412 244 2,483 1,893 Unamortized Debt Issuance Costs and Net (Discount) Premium (35 ) (39 ) Total Vehicle Debt 11,176 9,646 Total Debt $ 16,809 $ 13,541 N/A - Not Applicable (1) References to the "Senior Notes" include the series of Hertz's unsecured senior notes set forth on the table below. Outstanding principal amounts for each such series of the Senior Notes is also specified below: (In millions) Outstanding Principal Senior Notes June 30, 2017 December 31, 2016 4.25% Senior Notes due April 2018 $ — $ 250 6.75% Senior Notes due April 2019 450 450 5.875% Senior Notes due October 2020 700 700 7.375% Senior Notes due January 2021 500 500 6.25% Senior Notes due October 2022 500 500 5.50% Senior Notes due October 2024 800 800 $ 2,950 $ 3,200 (2) Maturity reference is to the earlier "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) Approximately $67 million of the aggregate maximum borrowing capacity under the U.S. Vehicle RCF is scheduled to expire in January 2018 . (4) References to the "European Vehicle Notes" include the series of Hertz Holdings Netherlands B.V.'s, an indirect wholly-owned subsidiary of Hertz organized under the laws of The Netherlands (“HHN BV”), unsecured senior notes (converted from Euros to U.S. dollars at a rate of 1.14 to 1 and 1.04 to 1 as of June 30, 2017 and December 31, 2016 , respectively) set forth on the table below. Outstanding principal amounts for each such series of the European Vehicle Notes is also specified below: (In millions) Outstanding Principal European Vehicles Notes June 30, 2017 December 31, 2016 4.375% Senior Notes due January 2019 (€425 million aggregate principal amount) $ 484 $ 443 4.125% Senior Notes due October 2021 (€225 million aggregate principal amount) 256 234 $ 740 $ 677 (5) In the case of the Hertz Fleet Lease Funding LP ("HFLF") Medium Term Notes, such notes are repayable from cash flows derived from third-party leases comprising the underlying HFLF collateral pool. The initial maturity date referenced for each series of HFLF Medium Term Notes represents the end of the revolving period for such series, at which time the related notes begin to amortize monthly by an amount equal to the lease collections payable to that series. To the extent the revolving period already has ended, the initial maturity date reflected is July 2017. The second maturity date referenced for each series of HFLF Medium Term Notes represents the date by which Hertz and the investors in the related series expect such series of notes to be repaid in full, which is based upon various assumptions made at the time of pricing of such notes, including the contractual amortization of the underlying leases as well as the assumed rate of prepayments of such leases. Such maturity reference is to the “expected final maturity date” as opposed to the subsequent “legal final maturity date”. The legal final maturity date is the date on which the relevant indebtedness is legally due and payable. Although the underlying lease cash flows that support the repayment of the HFLF Medium Term Notes may vary, the cash flows generally are expected to approximate a straight line amortization of the related notes from the initial maturity date through the expected final maturity date. The fair value of debt is estimated based on quoted market rates as well as borrowing rates currently available to the Company for loans with similar terms and average maturities (Level 2 inputs). As of June 30, 2017 As of December 31, 2016 (In millions) Nominal Unpaid Principal Balance Aggregate Fair Value Nominal Unpaid Principal Balance Aggregate Fair Value Non-vehicle Debt $ 5,679 $ 5,401 $ 3,934 $ 3,791 Vehicle Debt 11,211 11,190 9,685 9,670 Total $ 16,890 $ 16,591 $ 13,619 $ 13,461 |
Fair Value Measurements, Nonrecurring | Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis (In millions) Carrying Value as of June 30, 2017 Level 1 Level 2 Level 3 Total Fair Value (Income)/Loss Adjustments Recorded for the Six Months Ended June 30, 2017 Long-lived assets held for sale $ 109 $ — $ 109 $ — $ — Liabilities held for sale $ 13 $ — $ 13 $ — $ — Equity method investments $ 4 $ — $ — $ 4 $ 30 Intangible assets $ 934 $ — $ — $ 934 $ 86 |
Earnings (Loss) Per Share - H34
Earnings (Loss) Per Share - Hertz Global (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | he following table sets forth the computation of basic and diluted earnings (loss) per share: Three Months Ended Six Months Ended (In millions, except per share data) 2017 2016 2017 2016 Basic and diluted earnings (loss) per share: Numerator: Net income (loss) from continuing operations $ (158 ) $ (28 ) $ (381 ) $ (80 ) Net income (loss) from discontinued operations — (15 ) — (13 ) Net income (loss), basic $ (158 ) $ (43 ) $ (381 ) $ (93 ) Denominator: Basic weighted average common shares 83 85 83 85 Dilutive stock options, RSUs, PSUs and PSAs — — — — Weighted average shares used to calculate diluted earnings per share 83 85 83 85 Antidilutive stock options, RSUs, PSUs and PSAs 3 1 3 2 Earnings (loss) per share: Basic earnings (loss) per share from continuing operations $ (1.90 ) $ (0.33 ) $ (4.59 ) $ (0.94 ) Basic earnings (loss) per share from discontinued operations — (0.18 ) — (0.15 ) Basic earnings (loss) per share $ (1.90 ) $ (0.51 ) $ (4.59 ) $ (1.09 ) Diluted earnings (loss) per share from continuing operations $ (1.90 ) $ (0.33 ) $ (4.59 ) $ (0.94 ) Diluted earnings (loss) per share from discontinued operations — (0.18 ) — (0.15 ) Diluted earnings (loss) per share $ (1.90 ) $ (0.51 ) $ (4.59 ) $ (1.09 ) |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following tables provide significant statement of operations and balance sheet information by segment for each of Hertz Global and Hertz, as well as adjusted pretax income (loss), the segment measure of profitability. Three Months Ended Six Months Ended (In millions) 2017 2016 2017 2016 Revenues U.S. Rental Car $ 1,519 $ 1,584 $ 2,872 $ 2,990 International Rental Car 543 540 955 973 All Other Operations 162 146 313 290 Total Hertz Global and Hertz $ 2,224 $ 2,270 $ 4,140 $ 4,253 Depreciation of revenue earning vehicles and lease charges, net U.S. Rental Car $ 524 $ 417 $ 1,023 $ 836 International Rental Car 100 98 185 184 All Other Operations 119 114 236 225 Total Hertz Global and Hertz $ 743 $ 629 $ 1,444 $ 1,245 Adjusted pre-tax income (loss) (a) U.S. Rental Car $ (37 ) $ 143 $ (152 ) $ 138 International Rental Car 56 34 52 36 All Other Operations 19 17 39 35 Corporate (120 ) (139 ) (234 ) (262 ) Total Hertz Global (82 ) 55 (295 ) (53 ) Corporate - Hertz 1 — 2 — Total Hertz $ (81 ) $ 55 $ (293 ) $ (53 ) (In millions) June 30, 2017 December 31, 2016 Total Assets U.S. Rental Car $ 13,639 $ 12,876 International Rental Car 4,852 3,578 All other operations 1,646 1,612 Corporate 2,296 1,089 Total Hertz Global and Hertz $ 22,433 $ 19,155 (a) Adjusted pre-tax income (loss), the Company's segment profitability measure, is calculated as income (loss) from continuing operations before income taxes plus non-cash acquisition accounting charges, debt-related charges relating to the amortization and write-off of debt financing costs and debt discounts, intangible and tangible asset impairments and write downs and certain one-time charges and non-operational items. Reconciliation of adjusted pre-tax income (loss) by segment to consolidated amounts are summarized below. Hertz Global Three Months Ended Six Months Ended (In millions) 2017 2016 2017 2016 Adjusted pre-tax income (loss): U.S. Rental Car $ (37 ) $ 143 $ (152 ) $ 138 International Rental Car 56 34 52 36 All Other Operations 19 17 39 35 Total reportable segments 38 194 (61 ) 209 Corporate (1) (120 ) (139 ) (234 ) (262 ) Adjusted pre-tax income (loss) (82 ) 55 (295 ) (53 ) Adjustments: Acquisition accounting (2) (16 ) (18 ) (31 ) (34 ) Debt-related charges (3) (10 ) (12 ) (21 ) (25 ) Loss on extinguishment of debt (4) (8 ) (20 ) (8 ) (20 ) Restructuring and restructuring related charges (5) (5 ) (18 ) (13 ) (29 ) Sale of CAR Inc. common stock (6) — — 3 75 Impairment charges and asset write-downs (7) (86 ) (3 ) (116 ) (3 ) Finance and information technology transformation costs (8) (20 ) (19 ) (39 ) (26 ) Other (9) (18 ) — (19 ) 3 Income (loss) before income taxes $ (245 ) $ (35 ) $ (539 ) $ (112 ) Hertz Three Months Ended Six Months Ended (In millions) 2017 2016 2017 2016 Adjusted pre-tax income (loss): U.S. Rental Car $ (37 ) $ 143 $ (152 ) $ 138 International Rental Car 56 34 52 36 All Other Operations 19 17 39 35 Total reportable segments 38 194 (61 ) 209 Corporate (1) (119 ) (139 ) (232 ) (262 ) Adjusted pre-tax income (loss) (81 ) 55 (293 ) (53 ) Adjustments: Acquisition accounting (2) (16 ) (18 ) (31 ) (34 ) Debt-related charges (3) (10 ) (12 ) (21 ) (25 ) Loss on extinguishment of debt (4) (8 ) (20 ) (8 ) (20 ) Restructuring and restructuring related charges (5) (5 ) (18 ) (13 ) (29 ) Sale of CAR Inc. common stock (6) — — 3 75 Impairment charges and asset write-downs (7) (86 ) (3 ) (116 ) (3 ) Finance and information technology transformation costs (8) (20 ) (19 ) (39 ) (26 ) Other (9) (18 ) — (19 ) 3 Income (loss) before income taxes $ (244 ) $ (35 ) $ (537 ) $ (112 ) (1) Represents general corporate expenses, non-vehicle interest expense, as well as other business activities. (2) Represents incremental expense associated with amortization of other intangible assets and depreciation of property and equipment relating to acquisition accounting. (3) Represents debt-related charges relating to the amortization of deferred financing costs and debt discounts and premiums. (4) In 2017, represents $6 million of early redemption premium and write off of deferred financing costs associated with the redemption of the outstanding 4.25% Senior Notes due April 2018 and a $2 million write-off of deferred financing costs associated with the termination of commitments under the Senior RCF. In 2016, represents the write-off of deferred financing costs in the second quarter as a result of paying off the Senior Term Facility and various vehicle debt refinancings. (5) Represents expenses incurred under restructuring actions as defined in U.S. GAAP, excluding impairments and asset write-downs, when applicable. For further information on restructuring costs, see Note 10 , " Restructuring ." Also represents certain other charges such as incremental costs incurred directly supporting business transformation initiatives. Such costs include transition costs incurred in connection with 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. Also includes consulting costs and legal fees related to the previously disclosed accounting review and investigation. (6) Represents the pre-tax gain on the sale of CAR Inc. common stock. (7) In 2017, primarily represents a second quarter $86 million impairment of the Dollar Thrifty tradename and a first quarter impairment of $30 million related to an equity method investment. (8) Represents external costs associated with the Company’s finance and information technology transformation programs, both of which are multi-year initiatives that commenced in 2016 to upgrade and modernize the Company’s systems and processes. (9) Represents miscellaneous, non-recurring and other non-cash items. In 2017, includes first and second quarter adjustments, as applicable, to the carrying value of the Company's Brazil operations in connection with its classification as held for sale and second quarter charges of $6 million for labor-related matters and $5 million relating to PLPD as a result of a terrorist event. For the six months ended June 30, 2016 , includes a $9 million settlement gain from an eminent domain case related to one of the Company's airport locations. |
Guarantor and Non-Guarantor C36
Guarantor and Non-Guarantor Condensed Consolidating Financial Information - Hertz (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Guarantor and Non-Guarantor Condensed Consolidating Financial Statements Disclosure [Abstract] | |
Condensed Balance Sheet | THE HERTZ CORPORATION CONDENSED CONSOLIDATING BALANCE SHEET June 30, 2017 (In millions) Parent (The Hertz Corporation) Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations The Hertz Corporation & Subsidiaries ASSETS Cash and cash equivalents $ 841 $ 11 $ 289 $ — $ 1,141 Restricted cash and cash equivalents 888 7 167 — 1,062 Receivables, net of allowance 271 160 779 — 1,210 Due from affiliates 3,400 4,176 9,158 (16,734 ) — Prepaid expenses and other assets 5,410 77 236 (5,158 ) 565 Revenue earning vehicles, net 317 3 12,866 — 13,186 Property and equipment, net 631 65 143 — 839 Investment in subsidiaries, net 6,201 694 — (6,895 ) — Other intangible assets, net 112 3,111 16 — 3,239 Goodwill 102 943 37 — 1,082 Assets held for sale — — 109 — 109 Total assets $ 18,173 $ 9,247 $ 23,800 $ (28,787 ) $ 22,433 LIABILITIES AND EQUITY Due to affiliates $ 10,461 $ 1,990 $ 4,283 $ (16,734 ) $ — Accounts payable 380 97 904 — 1,381 Accrued liabilities 529 90 344 — 963 Accrued taxes, net 86 23 3,225 (3,168 ) 166 Debt 5,800 — 11,009 — 16,809 Public liability and property damage 162 42 219 — 423 Deferred income taxes, net — 2,077 1,836 (1,990 ) 1,923 Liabilities held for sale — — 13 — 13 Total liabilities 17,418 4,319 21,833 (21,892 ) 21,678 Equity: Stockholder's equity 755 4,928 1,967 (6,895 ) 755 Total liabilities and equity $ 18,173 $ 9,247 $ 23,800 $ (28,787 ) $ 22,433 THE HERTZ CORPORATION CONDENSED CONSOLIDATING BALANCE SHEET December 31, 2016 (In millions) Parent (The Hertz Corporation) Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations The Hertz Corporation & Subsidiaries ASSETS Cash and cash equivalents $ 458 $ 12 $ 346 $ — $ 816 Restricted cash and cash equivalents 53 5 220 — 278 Receivables, net of allowance 752 167 364 — 1,283 Due from affiliates 3,668 3,823 9,750 (17,241 ) — Prepaid expenses and other assets 4,821 83 199 (4,525 ) 578 Revenue earning vehicles, net 361 7 10,450 — 10,818 Property and equipment, net 656 70 132 — 858 Investment in subsidiaries, net 6,114 598 — (6,712 ) — Other intangible assets, net 89 3,223 20 — 3,332 Goodwill 102 943 36 — 1,081 Assets held for sale — — 111 — 111 Total assets $ 17,074 $ 8,931 $ 21,628 $ (28,478 ) $ 19,155 LIABILITIES AND EQUITY Due to affiliates $ 10,833 $ 1,900 $ 4,508 $ (17,241 ) $ — Accounts payable 279 90 452 — 821 Accrued liabilities 557 103 320 — 980 Accrued taxes, net 78 18 2,881 (2,812 ) 165 Debt 4,086 — 9,455 — 13,541 Public liability and property damage 166 43 198 — 407 Deferred income taxes, net — 2,065 1,797 (1,713 ) 2,149 Liabilities held for sale — — 17 — 17 Total liabilities 15,999 4,219 19,628 (21,766 ) 18,080 Equity: Stockholder's equity 1,075 4,712 2,000 (6,712 ) 1,075 Total liabilities and equity $ 17,074 $ 8,931 $ 21,628 $ (28,478 ) $ 19,155 |
Condensed Income Statement | THE HERTZ CORPORATION CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) For the Three Months Ended June 30, 2017 (In millions) Parent (The Hertz Corporation) Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations The Hertz Corporation & Subsidiaries Total revenues $ 1,170 $ 354 $ 1,871 $ (1,171 ) $ 2,224 Expenses: Direct vehicle and operating 741 181 333 — 1,255 Depreciation of revenue earning vehicles and lease charges, net 1,024 113 714 (1,108 ) 743 Selling, general and administrative 156 8 59 — 223 Interest expense, net 101 (25 ) 81 — 157 Intangible asset impairments — 86 — — 86 Other (income) expense, net — — 4 — 4 Total expenses 2,022 363 1,191 (1,108 ) 2,468 Income (loss) from continuing operations before income taxes and equity in earnings (losses) of subsidiaries (852 ) (9 ) 680 (63 ) (244 ) Income tax (provision) benefit 358 1 (273 ) — 86 Equity in earnings (losses) of subsidiaries, net of tax 336 30 — (366 ) — Net income (loss) from continuing operations (158 ) 22 407 (429 ) (158 ) Net income (loss) from discontinued operations — — — — — Net income (loss) (158 ) 22 407 (429 ) (158 ) Other comprehensive income (loss), net of tax (7 ) 3 (8 ) 5 (7 ) Comprehensive income (loss) $ (165 ) $ 25 $ 399 $ (424 ) $ (165 ) THE HERTZ CORPORATION CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) For the Three Months Ended June 30, 2016 (In millions) Parent (The Hertz Corporation) Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations The Hertz Corporation & Subsidiaries Total revenues $ 1,192 $ 385 $ 1,636 $ (943 ) $ 2,270 Expenses: Direct vehicle and operating 732 192 343 — 1,267 Depreciation of revenue earning vehicles and lease charges, net 759 214 599 (943 ) 629 Selling, general and administrative 158 11 65 — 234 Interest expense, net 119 (21 ) 76 — 174 Other (income) expense, net 1 (1 ) 1 — 1 Total expenses 1,769 395 1,084 (943 ) 2,305 Income (loss) from continuing operations before income taxes and equity in earnings (losses) of subsidiaries (577 ) (10 ) 552 — (35 ) Income tax (provision) benefit 227 3 (223 ) — 7 Equity in earnings (losses) of subsidiaries, net of tax 307 144 — (451 ) — Net income (loss) from continuing operations (43 ) 137 329 (451 ) (28 ) Net income (loss) from discontinued operations — (4 ) (11 ) — (15 ) Net income (loss) (43 ) 133 318 (451 ) (43 ) Other comprehensive income (loss), net of tax (45 ) (5 ) (23 ) 28 (45 ) Comprehensive income (loss) $ (88 ) $ 128 $ 295 $ (423 ) $ (88 ) THE HERTZ CORPORATION CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) For the Six Months Ended June 30, 2017 (In millions) Parent (The Hertz Corporation) Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations The Hertz Corporation & Subsidiaries Total revenues $ 2,220 $ 661 $ 3,248 $ (1,989 ) $ 4,140 Expenses: Direct vehicle and operating 1,429 350 608 — 2,387 Depreciation of revenue earning vehicles and lease charges, net 1,761 215 1,335 (1,867 ) 1,444 Selling, general and administrative 306 19 117 — 442 Interest expense, net 183 (47 ) 151 — 287 Intangible asset impairments — 86 — — 86 Other (income) expense, net 33 — (2 ) — 31 Total expenses 3,712 623 2,209 (1,867 ) 4,677 Income (loss) from continuing operations before income taxes and equity in earnings (losses) of subsidiaries (1,492 ) 38 1,039 (122 ) (537 ) Income tax (provision) benefit 572 (14 ) (401 ) — 157 Equity in earnings (losses) of subsidiaries, net of tax 540 62 — (602 ) — Net income (loss) from continuing operations (380 ) 86 638 (724 ) (380 ) Net income (loss) from discontinued operations — — — — — Net income (loss) (380 ) 86 638 (724 ) (380 ) Other comprehensive income (loss), net of tax 6 3 4 (7 ) 6 Comprehensive income (loss) $ (374 ) $ 89 $ 642 $ (731 ) $ (374 ) THE HERTZ CORPORATION CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) For the Six Months Ended June 30, 2016 (In millions) Parent (The Hertz Corporation) Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations The Hertz Corporation & Subsidiaries Total revenues $ 2,258 $ 725 $ 2,932 $ (1,662 ) $ 4,253 Expenses: Direct vehicle and operating 1,417 381 627 — 2,425 Depreciation of revenue earning vehicles and lease charges, net 1,380 349 1,177 (1,661 ) 1,245 Selling, general and administrative 304 24 132 (1 ) 459 Interest expense, net 207 (22 ) 140 — 325 Other (income) expense, net 1 (10 ) (80 ) — (89 ) Total expenses 3,309 722 1,996 (1,662 ) 4,365 Income (loss) from continuing operations before income taxes and equity in earnings (losses) of subsidiaries (1,051 ) 3 936 — (112 ) Income tax (provision) benefit 415 (2 ) (381 ) — 32 Equity in earnings (losses) of subsidiaries, net of tax 545 201 — (746 ) — Net income (loss) from continuing operations (91 ) 202 555 (746 ) (80 ) Net income (loss) from discontinued operations — (1 ) (10 ) — (11 ) Net income (loss) (91 ) 201 545 (746 ) (91 ) Other comprehensive income (loss), net of tax 9 (5 ) 29 (24 ) 9 Comprehensive income (loss) $ (82 ) $ 196 $ 574 $ (770 ) $ (82 ) |
Condensed Cash Flow Statement | THE HERTZ CORPORATION CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the Six Months Ended June 30, 2017 (In millions) Parent (The Hertz Corporation) Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations The Hertz Corporation & Subsidiaries Net cash provided by (used in) operating activities from continuing operations $ (377 ) $ 15 $ 2,168 $ (822 ) $ 984 Cash flows from investing activities: Net change in restricted cash and cash equivalents, vehicle (1 ) (1 ) 57 — 55 Revenue earning vehicle expenditures (171 ) (5 ) (6,533 ) — (6,709 ) Proceeds from disposal of revenue earning vehicles 91 — 3,744 — 3,835 Capital asset expenditures, non-vehicle (75 ) (5 ) (23 ) — (103 ) Proceeds from disposal of property and other equipment 6 — 5 — 11 Sales of shares in equity investment — — 9 — 9 Other — — (2 ) — (2 ) Capital contributions to subsidiaries (1,419 ) — — 1,419 — Return of capital from subsidiaries 1,898 — — (1,898 ) — Loan to Parent/Guarantor from Non-Guarantor — — 431 (431 ) — Net cash provided by (used in) investing activities from continuing operations 329 (11 ) (2,312 ) (910 ) (2,904 ) Cash flows from financing activities: Net change in restricted cash and cash equivalents, non-vehicle (834 ) (1 ) 1 — (834 ) Proceeds from issuance of vehicle debt 631 — 4,397 — 5,028 Repayments of vehicle debt (657 ) — (3,008 ) — (3,665 ) Proceeds from issuance of non-vehicle debt 2,100 — — — 2,100 Repayments of non-vehicle debt (354 ) — — — (354 ) Payment of financing costs (16 ) (4 ) (14 ) — (34 ) Early redemption premium payment (5 ) — — — (5 ) Advances to Hertz Global (3 ) — — — (3 ) Capital contributions received from parent — — 1,419 (1,419 ) — Payment of dividends and return of capital — — (2,720 ) 2,720 — Loan to Parent/Guarantor from Non-Guarantor (431 ) — — 431 — Net cash provided by (used in) financing activities from continuing operations 431 (5 ) 75 1,732 2,233 Effect of foreign currency exchange rate changes on cash and cash equivalents from continuing operations — — 12 — 12 Net increase (decrease) in cash and cash equivalents during the period from continuing operations 383 (1 ) (57 ) — 325 Cash and cash equivalents at beginning of period 458 12 346 — 816 Cash and cash equivalents at end of period $ 841 $ 11 $ 289 $ — $ 1,141 THE HERTZ CORPORATION CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the Six Months Ended June 30, 2016 (In millions) Parent (The Hertz Corporation) Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations The Hertz Corporation & Subsidiaries Net cash provided by (used in) operating activities from continuing operations $ (1,492 ) $ 37 $ 2,908 $ (439 ) $ 1,014 Cash flows from investing activities: Net change in restricted cash and cash equivalents, vehicle (10 ) (2 ) 30 — 18 Net change in restricted cash and cash equivalents, non-vehicle — — (2 ) — (2 ) Revenue earning vehicle expenditures (176 ) (34 ) (6,677 ) — (6,887 ) Proceeds from disposal of revenue earning vehicles 131 — 4,656 — 4,787 Capital assets expenditures, non-vehicle (41 ) (8 ) (23 ) — (72 ) Proceeds from disposal of property and other equipment 12 3 24 — 39 Sales of shares in equity investment, net of amounts invested (45 ) — 233 — 188 Capital contributions to subsidiaries (514 ) — — 514 — Return of capital from subsidiaries 1,623 — — (1,623 ) — Loan to Parent/Guarantor from Non-Guarantor — — (405 ) 405 — Net cash provided by (used in) investing activities from continuing operations 980 (41 ) (2,164 ) (704 ) (1,929 ) Cash flows from financing activities: Proceeds from issuance of vehicle debt 186 — 5,893 — 6,079 Repayments of vehicle debt (183 ) — (4,895 ) — (5,078 ) Proceeds from issuance of non-vehicle debt 1,477 — — — 1,477 Repayments of non-vehicle debt (2,843 ) — — — (2,843 ) Payment of financing costs (31 ) (3 ) (17 ) — (51 ) Transfers from discontinued entities 2,122 — — — 2,122 Other 11 1 — — 12 Capital contributions received from parent — — 514 (514 ) — Payment of dividends and return of capital — — (2,062 ) 2,062 — Loan to Parent/Guarantor from Non-Guarantor 405 — — (405 ) — Net cash provided by (used in) financing activities from continuing operations 1,144 (2 ) (567 ) 1,143 1,718 Effect of foreign currency exchange rate changes on cash and cash equivalents from continuing operations — — 8 — 8 Net increase (decrease) in cash and cash equivalents during the period from continuing operations 632 (6 ) 185 — 811 Cash and cash equivalents at beginning of period 179 17 278 — 474 Cash and cash equivalents at end of period $ 811 $ 11 $ 463 $ — $ 1,285 Cash flows from discontinued operations: Cash flows provided by (used in) operating activities $ — $ 59 $ 148 $ — $ 207 Cash flows provided by (used in) investing activities — (75 ) (2 ) — (77 ) Cash flows provided by (used in) financing activities — 44 (138 ) — (94 ) Net increase (decrease) in cash and cash equivalents during the period from discontinued operations $ — $ 28 $ 8 $ — $ 36 |
Background (Details)
Background (Details) | 6 Months Ended |
Jun. 30, 2017 | |
Hertz Global Holdings | |
Class of Stock [Line Items] | |
Stock distribution ratio | 0.2 |
Basis of Presentation and Rec38
Basis of Presentation and Recently Issued Accounting Pronouncements (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Payments to Acquire Revenue Earning Equipment | $ 6,709 | $ 6,887 | ||
Increase in net loss from misstatement related to income tax provision | $ (87) | $ (7) | (158) | (32) |
Proceeds from disposal of revenue earning vehicles | $ 3,835 | 4,787 | ||
Record deferred tax asset | Other Immaterial Errors | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Payments to Acquire Revenue Earning Equipment | 381 | |||
Increase in net loss from misstatement related to income tax provision | $ 10 | |||
Proceeds from disposal of revenue earning vehicles | $ (381) |
Basis of Presentation and Rec39
Basis of Presentation and Recently Issued Accounting Pronouncements (Recent Issued Accounting Pronouncements) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Deferred income taxes, net | $ 1,922 | $ 2,149 |
Total liabilities | 21,677 | 18,080 |
Accumulated deficit | (1,214) | (882) |
Total equity | 756 | 1,075 |
Total liabilities and equity | 22,433 | 19,155 |
Restricted cash and cash equivalents: | 1,062 | 278 |
Accounting Standards Update 2016-09 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Deferred income taxes, net | 2,100 | |
Total liabilities | 18,031 | |
Accumulated deficit | (833) | |
Total equity | 1,124 | |
Total liabilities and equity | 19,155 | |
Accounting Standards Update 2016-09 | As of December 31, 2016 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Deferred income taxes, net | 2,149 | |
Total liabilities | 18,080 | |
Accumulated deficit | (882) | |
Total equity | 1,075 | |
Total liabilities and equity | 19,155 | |
Accounting Standards Update 2016-09 | Record deferred tax asset | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Deferred income taxes, net | (49) | |
Total liabilities | (49) | |
Accumulated deficit | 49 | |
Total equity | 49 | |
Total liabilities and equity | 0 | |
The Hertz Corporation | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Deferred income taxes, net | 1,923 | 2,149 |
Total liabilities | 21,678 | 18,080 |
Accumulated deficit | (2,198) | (1,867) |
Total equity | 755 | 1,075 |
Total liabilities and equity | 22,433 | 19,155 |
Restricted cash and cash equivalents: | $ 1,062 | 278 |
The Hertz Corporation | Accounting Standards Update 2016-09 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Deferred income taxes, net | 2,100 | |
Total liabilities | 18,031 | |
Accumulated deficit | (1,818) | |
Total equity | 1,124 | |
Total liabilities and equity | 19,155 | |
The Hertz Corporation | Accounting Standards Update 2016-09 | As of December 31, 2016 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Deferred income taxes, net | 2,149 | |
Total liabilities | 18,080 | |
Accumulated deficit | (1,867) | |
Total equity | 1,075 | |
Total liabilities and equity | 19,155 | |
The Hertz Corporation | Accounting Standards Update 2016-09 | Record deferred tax asset | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Deferred income taxes, net | (49) | |
Total liabilities | (49) | |
Accumulated deficit | 49 | |
Total equity | 49 | |
Total liabilities and equity | $ 0 |
Discontinued Operations (Detail
Discontinued Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Net income (loss) from discontinued operations | $ 0 | $ (15) | $ 0 | $ (13) |
The Hertz Corporation | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Net income (loss) from discontinued operations | $ 0 | (15) | $ 0 | (11) |
Old Hertz Holdings' Worldwide Equipment Rental | Discontinued Operations | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Total revenues | 349 | 677 | ||
Direct operating expenses | 182 | 366 | ||
Depreciation of revenue earning equipment and lease charges, net | 91 | 181 | ||
Selling, general and administrative | 81 | 123 | ||
Interest expense, net | 11 | 17 | ||
Other (income) expense, net | 0 | (1) | ||
Income (loss) from discontinued operations before income taxes | (16) | (9) | ||
(Provision) benefit for taxes on discontinued operations | 1 | (4) | ||
Net income (loss) from discontinued operations | (15) | (13) | ||
Old Hertz Holdings' Worldwide Equipment Rental | Discontinued Operations | The Hertz Corporation | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Total revenues | 349 | 677 | ||
Direct operating expenses | 182 | 366 | ||
Depreciation of revenue earning equipment and lease charges, net | 91 | 181 | ||
Selling, general and administrative | 82 | 124 | ||
Interest expense, net | 10 | 13 | ||
Other (income) expense, net | 0 | (1) | ||
Income (loss) from discontinued operations before income taxes | (16) | (6) | ||
(Provision) benefit for taxes on discontinued operations | 1 | (5) | ||
Net income (loss) from discontinued operations | (15) | (11) | ||
Old Hertz Holdings' Worldwide Equipment Rental | Discontinued Operations | Senior ABL Facility | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Interest expense, net | $ 3 | $ 5 |
Acquisitions and Divestitures41
Acquisitions and Divestitures (Divestiture) (Details) - USD ($) shares in Millions, $ in Millions | 1 Months Ended | ||
Mar. 31, 2016 | Jun. 30, 2017 | Dec. 31, 2016 | |
ASSETS | |||
Assets held for sale | $ 109 | $ 111 | |
LIABILITIES | |||
Liabilities held for sale | 13 | 17 | |
CAR, Inc | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Net sales proceeds | $ 240 | ||
Ownership percentage | 1.70% | ||
CAR, Inc | Common Stock | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Number of shares sold | 204 | ||
Net sales proceeds | $ 233 | ||
Deferred gain on sale | 7 | ||
CAR, Inc | Common Stock | Other Operating Income (Expense) | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Pre-tax gain on sale of stock | $ 75 | ||
Brazil Operations | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Proceeds from sale | 108 | ||
Escrow deposits | 12 | ||
Held-for-sale | Brazil Operations | |||
ASSETS | |||
Cash and cash equivalents | 4 | 1 | |
Receivables, net | 12 | 11 | |
Prepaid expenses and other assets | 3 | 5 | |
Revenue earning vehicles, net | 81 | 86 | |
Property and equipment, net | 1 | 1 | |
Intangibles | 2 | 1 | |
Deferred income taxes, net | 6 | 6 | |
Assets held for sale | 109 | 111 | |
LIABILITIES | |||
Accounts payable | 6 | 11 | |
Accrued liabilities | 7 | 6 | |
Liabilities held for sale | $ 13 | $ 17 |
Revenue Earning Vehicles (Detai
Revenue Earning Vehicles (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||||
Revenue earning vehicles | $ 15,739 | $ 15,739 | $ 13,287 | ||
Less: Accumulated depreciation | (2,843) | (2,843) | (2,678) | ||
Subtotal | 12,896 | 12,896 | 10,609 | ||
Revenue earning vehicles held for sale, net | 290 | 290 | 209 | ||
Total revenue earning vehicles, net | 13,186 | 13,186 | $ 10,818 | ||
Depreciation of revenue earning vehicles | 660 | $ 576 | 1,265 | $ 1,135 | |
(Gain) loss on disposal of revenue earning equipment | 66 | 35 | 145 | 77 | |
Rents paid for vehicles leased | 17 | 18 | 34 | 33 | |
Depreciation of revenue earning equipment and lease charges, net | 743 | 629 | 1,444 | 1,245 | |
U.S. Rental Car | |||||
Property, Plant and Equipment [Line Items] | |||||
(Gain) loss on disposal of revenue earning equipment | 67 | 38 | 145 | 81 | |
Other cost of services | 34 | 27 | 63 | 53 | |
International Rental Car | |||||
Property, Plant and Equipment [Line Items] | |||||
(Gain) loss on disposal of revenue earning equipment | $ (1) | $ (3) | $ 0 | $ (4) |
Revenue Earning Vehicles (Depre
Revenue Earning Vehicles (Depreciation Rates) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Revenue earning equipment | ||||
Depreciation rate changes | $ 37 | $ 20 | $ 63 | $ 47 |
U.S. Rental Car | ||||
Revenue earning equipment | ||||
Depreciation rate changes | 36 | 19 | 62 | 45 |
U.S. Rental Car | Other Immaterial Error Corrections | ||||
Revenue earning equipment | ||||
Depreciation rate changes | 24 | 12 | 0 | 0 |
International Rental Car | ||||
Revenue earning equipment | ||||
Depreciation rate changes | $ 1 | $ 1 | $ 1 | $ 2 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Indefinite-lived Intangible Assets [Line Items] | |||||
Intangible asset impairments | $ 86 | $ 0 | $ 86 | $ 0 | |
Dollar Thrifty tradename | U.S. Rental Car | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Intangible asset impairments | $ 86 | ||||
Weighted average cost of capital assumption, percent increase | 1.00% | 1.00% | 1.00% | ||
Weighted average cost of capital assumption, adjustment amount | $ 80 | $ 80 | $ 80 | ||
Fair Value, Measurements, Nonrecurring | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Intangible asset impairments | 86 | ||||
Fair Value, Measurements, Nonrecurring | Dollar Thrifty tradename | U.S. Rental Car | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Intangible assets | $ 934 | $ 934 | $ 934 |
Debt (Schedule of Debt) (Detail
Debt (Schedule of Debt) (Details) € in Millions, CAD in Millions, $ in Millions | 1 Months Ended | |||||
Jan. 31, 2018USD ($) | Jun. 30, 2017USD ($)€ / $ | Jun. 30, 2017EUR (€)€ / $ | Jun. 30, 2017CAD€ / $ | Apr. 30, 2017USD ($) | Dec. 31, 2016USD ($)€ / $ | |
Debt Instrument [Line Items] | ||||||
Debt: | $ 16,809 | $ 13,541 | ||||
Non-Vehicle Debt | ||||||
Debt Instrument [Line Items] | ||||||
Unamortized Net Discount | (46) | (39) | ||||
Debt: | $ 5,633 | 3,895 | ||||
Senior Term Loan | ||||||
Debt Instrument [Line Items] | ||||||
Average interest rate (as a percent) | 3.98% | 3.98% | 3.98% | |||
Outstanding principal | $ 693 | 697 | ||||
Senior RCF | ||||||
Debt Instrument [Line Items] | ||||||
Average interest rate (as a percent) | 4.41% | 4.41% | 4.41% | |||
Outstanding principal | $ 750 | 0 | ||||
Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Average interest rate (as a percent) | 6.22% | 6.22% | 6.22% | |||
Outstanding principal | $ 2,950 | 3,200 | ||||
4.25% Senior Notes due April 2018 | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding principal | $ 0 | 250 | ||||
Interest rate | 4.25% | 4.25% | 4.25% | |||
6.75% Senior Notes due April 2019 | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding principal | $ 450 | 450 | ||||
Interest rate | 6.75% | 6.75% | 6.75% | |||
5.875% Senior Notes due October 2020 | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding principal | $ 700 | 700 | ||||
Interest rate | 5.875% | 5.875% | 5.875% | |||
7.375% Senior Notes due January 2021 | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding principal | $ 500 | 500 | ||||
Interest rate | 7.375% | 7.375% | 7.375% | |||
6.25% Senior Notes due October 2022 | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding principal | $ 500 | 500 | ||||
Interest rate | 6.25% | 6.25% | 6.25% | |||
5.50% Senior Notes due October 2024 | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding principal | $ 800 | 800 | ||||
Interest rate | 5.50% | 5.50% | 5.50% | |||
Senior Second Priority Secured Notes | ||||||
Debt Instrument [Line Items] | ||||||
Average interest rate (as a percent) | 7.63% | 7.63% | 7.63% | |||
Outstanding principal | $ 1,250 | 0 | ||||
Promissory Notes | ||||||
Debt Instrument [Line Items] | ||||||
Average interest rate (as a percent) | 7.00% | 7.00% | 7.00% | |||
Outstanding principal | $ 27 | 27 | ||||
Other Non-Vehicle Debt | ||||||
Debt Instrument [Line Items] | ||||||
Average interest rate (as a percent) | 1.98% | 1.98% | 1.98% | |||
Outstanding principal | $ 9 | 10 | ||||
Vehicle Debt | ||||||
Debt Instrument [Line Items] | ||||||
Unamortized Net Discount | (35) | (39) | ||||
Debt: | 11,176 | 9,646 | ||||
U.S. Fleet Medium Term Notes | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding principal | $ 740 | 855 | ||||
U.S. Fleet Medium Term Notes Series 2010-1 Notes | ||||||
Debt Instrument [Line Items] | ||||||
Average interest rate (as a percent) | 4.96% | 4.96% | 4.96% | |||
Outstanding principal | $ 115 | 115 | ||||
U.S. Fleet Medium Term Notes Series 2011-1 Notes | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding principal | $ 0 | 115 | ||||
U.S. Fleet Medium Term Notes Series 2013-1 Notes | ||||||
Debt Instrument [Line Items] | ||||||
Average interest rate (as a percent) | 1.91% | 1.91% | 1.91% | |||
Outstanding principal | $ 625 | 625 | ||||
HVF II US Fleet Variable Funding Notes | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding principal | $ 3,491 | 2,470 | ||||
HVF II Series 2013-A | ||||||
Debt Instrument [Line Items] | ||||||
Average interest rate (as a percent) | 2.39% | 2.39% | 2.39% | |||
Outstanding principal | $ 3,223 | $ 3,100 | 1,844 | |||
HVF II Series 2013-B | ||||||
Debt Instrument [Line Items] | ||||||
Average interest rate (as a percent) | 2.34% | 2.34% | 2.34% | |||
Outstanding principal | $ 268 | $ 581 | 626 | |||
HVF II Series 2017-A | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding principal | 0 | 0 | ||||
HVF II U.S. Fleet Variable Medium Term Notes | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding principal | $ 3,180 | 3,180 | ||||
U.S. Fleet Medium Term Notes 2015 Series 1 | ||||||
Debt Instrument [Line Items] | ||||||
Average interest rate (as a percent) | 2.93% | 2.93% | 2.93% | |||
Outstanding principal | $ 780 | 780 | ||||
U.S. Fleet Medium Term Notes 2015 Series 2 | ||||||
Debt Instrument [Line Items] | ||||||
Average interest rate (as a percent) | 2.30% | 2.30% | 2.30% | |||
Outstanding principal | $ 250 | 250 | ||||
U.S. Fleet Medium Term Notes 2015 Series 3 | ||||||
Debt Instrument [Line Items] | ||||||
Average interest rate (as a percent) | 2.96% | 2.96% | 2.96% | |||
Outstanding principal | $ 350 | 350 | ||||
U.S. Fleet Medium Term Notes 2016 Series 1 | ||||||
Debt Instrument [Line Items] | ||||||
Average interest rate (as a percent) | 2.72% | 2.72% | 2.72% | |||
Outstanding principal | $ 439 | 439 | ||||
U.S. Fleet Medium Term Notes 2016 Series 2 | ||||||
Debt Instrument [Line Items] | ||||||
Average interest rate (as a percent) | 3.25% | 3.25% | 3.25% | |||
Outstanding principal | $ 561 | 561 | ||||
U.S. Fleet Medium Term Notes 2016 Series 3 | ||||||
Debt Instrument [Line Items] | ||||||
Average interest rate (as a percent) | 2.56% | 2.56% | 2.56% | |||
Outstanding principal | $ 400 | 400 | ||||
U.S. Fleet Medium Term Notes 2016 Series 4 | ||||||
Debt Instrument [Line Items] | ||||||
Average interest rate (as a percent) | 2.91% | 2.91% | 2.91% | |||
Outstanding principal | $ 400 | 400 | ||||
Donlen ABS Program | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding principal | $ 150 | 410 | ||||
HFLF Series 2013-2 Notes | ||||||
Debt Instrument [Line Items] | ||||||
Average interest rate (as a percent) | 2.11% | 2.11% | 2.11% | |||
Outstanding principal | $ 150 | 410 | ||||
HFLF Medium Term Notes | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding principal | 1,167 | 877 | ||||
HFLF Series 2013-3 | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding principal | $ 0 | 96 | ||||
HFLF Series 2014-1 | ||||||
Debt Instrument [Line Items] | ||||||
Average interest rate (as a percent) | 2.06% | 2.06% | 2.06% | |||
Outstanding principal | $ 82 | 148 | ||||
HFLF Series 2015-1 | ||||||
Debt Instrument [Line Items] | ||||||
Average interest rate (as a percent) | 1.84% | 1.84% | 1.84% | |||
Outstanding principal | $ 198 | 248 | ||||
HFLF Series 2016-1 | ||||||
Debt Instrument [Line Items] | ||||||
Average interest rate (as a percent) | 2.35% | 2.35% | 2.35% | |||
Outstanding principal | $ 387 | 385 | ||||
Other Fleet Debt | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding principal | $ 2,483 | 1,893 | ||||
U.S. Vehicle RCF | ||||||
Debt Instrument [Line Items] | ||||||
Average interest rate (as a percent) | 3.55% | 3.55% | 3.55% | |||
Outstanding principal | $ 168 | 193 | ||||
U.S. Vehicle RCF | Forecast | ||||||
Debt Instrument [Line Items] | ||||||
Decrease to borrowing capacity of revolving credit facility | $ 67 | |||||
European Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Average interest rate (as a percent) | 2.75% | 2.75% | 2.75% | |||
Outstanding principal | $ 284 | 147 | ||||
Face Amount | € | € 235 | |||||
European Fleet Notes | ||||||
Debt Instrument [Line Items] | ||||||
Average interest rate (as a percent) | 4.29% | 4.29% | 4.29% | |||
Outstanding principal | $ 740 | $ 677 | ||||
Foreign currency exchange rate (EURO to USD) | € / $ | 1.14 | 1.14 | 1.14 | 1.04 | ||
4.375% Due January 2019 | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding principal | $ 484 | $ 443 | ||||
Interest rate | 4.375% | 4.375% | 4.375% | |||
Face Amount | € | € 425 | |||||
4.125% Due October 2021 | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding principal | $ 256 | 234 | ||||
Interest rate | 4.125% | 4.125% | 4.125% | |||
Face Amount | € | € 225 | |||||
European Securitization | ||||||
Debt Instrument [Line Items] | ||||||
Average interest rate (as a percent) | 1.55% | 1.55% | 1.55% | |||
Outstanding principal | $ 454 | 312 | ||||
Canadian Securitization | ||||||
Debt Instrument [Line Items] | ||||||
Average interest rate (as a percent) | 2.19% | 2.19% | 2.19% | |||
Outstanding principal | $ 268 | 162 | ||||
Face Amount | CAD | CAD 350 | |||||
Australian Securitization | ||||||
Debt Instrument [Line Items] | ||||||
Average interest rate (as a percent) | 3.12% | 3.12% | 3.12% | |||
Outstanding principal | $ 122 | 117 | ||||
New Zealand RCF | ||||||
Debt Instrument [Line Items] | ||||||
Average interest rate (as a percent) | 4.30% | 4.30% | 4.30% | |||
Outstanding principal | $ 35 | 41 | ||||
Capitalized Leases | ||||||
Debt Instrument [Line Items] | ||||||
Average interest rate (as a percent) | 2.74% | 2.74% | 2.74% | |||
Outstanding principal | $ 412 | $ 244 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) € in Millions, CAD in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||||||||||
Jan. 31, 2018USD ($) | Jun. 30, 2017USD ($) | May 31, 2017USD ($) | Apr. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Sep. 30, 2017EUR (€) | Jun. 30, 2017EUR (€) | Jun. 30, 2017CAD | May 31, 2017EUR (€) | Feb. 28, 2017USD ($) | Feb. 28, 2017EUR (€) | Dec. 31, 2016USD ($) | |
Debt Instrument [Line Items] | |||||||||||||||
Adjustments: | $ (245,000,000) | $ (35,000,000) | $ (539,000,000) | $ (112,000,000) | |||||||||||
Availability under borrowing base limitation | $ 39,000,000 | 39,000,000 | 39,000,000 | ||||||||||||
VIE, total assets | 655,000,000 | 655,000,000 | 655,000,000 | $ 454,000,000 | |||||||||||
VIE, total liabilities | 654,000,000 | 654,000,000 | 654,000,000 | 454,000,000 | |||||||||||
Repayments of principal in next twelve months | 1,400,000,000 | 1,400,000,000 | 1,400,000,000 | ||||||||||||
HFLF Medium Term Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Availability under borrowing base limitation | 0 | 0 | 0 | ||||||||||||
Outstanding principal | $ 1,167,000,000 | $ 1,167,000,000 | $ 1,167,000,000 | 877,000,000 | |||||||||||
European Revolving Credit Facility | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Average interest rate (as a percent) | 2.75% | 2.75% | 2.75% | 2.75% | 2.75% | ||||||||||
Availability under borrowing base limitation | $ 0 | $ 0 | $ 0 | ||||||||||||
Face Amount | € | € 235 | ||||||||||||||
Outstanding principal | $ 284,000,000 | $ 284,000,000 | $ 284,000,000 | 147,000,000 | |||||||||||
European Vehicle Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Average interest rate (as a percent) | 4.29% | 4.29% | 4.29% | 4.29% | 4.29% | ||||||||||
Outstanding principal | $ 740,000,000 | $ 740,000,000 | $ 740,000,000 | 677,000,000 | |||||||||||
European Securitization | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Average interest rate (as a percent) | 1.55% | 1.55% | 1.55% | 1.55% | 1.55% | ||||||||||
Availability under borrowing base limitation | $ 0 | $ 0 | $ 0 | ||||||||||||
Outstanding principal | $ 454,000,000 | $ 454,000,000 | $ 454,000,000 | 312,000,000 | |||||||||||
UK Leveraged Financing | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Face Amount | € | € 287.5 | € 250 | |||||||||||||
New Zealand RCF | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Average interest rate (as a percent) | 4.30% | 4.30% | 4.30% | 4.30% | 4.30% | ||||||||||
Availability under borrowing base limitation | $ 0 | $ 0 | $ 0 | ||||||||||||
Outstanding principal | $ 35,000,000 | $ 35,000,000 | $ 35,000,000 | 41,000,000 | |||||||||||
HFLF Series 2015-1 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Average interest rate (as a percent) | 1.84% | 1.84% | 1.84% | 1.84% | 1.84% | ||||||||||
Outstanding principal | $ 198,000,000 | $ 198,000,000 | $ 198,000,000 | 248,000,000 | |||||||||||
Canadian Securitization | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Average interest rate (as a percent) | 2.19% | 2.19% | 2.19% | 2.19% | 2.19% | ||||||||||
Availability under borrowing base limitation | $ 0 | $ 0 | $ 0 | ||||||||||||
Face Amount | CAD | CAD 350 | ||||||||||||||
Outstanding principal | 268,000,000 | $ 268,000,000 | 268,000,000 | 162,000,000 | |||||||||||
Senior ABL Facility | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Fixed charge coverage ratio number of quarters | 1 year | ||||||||||||||
Availability under borrowing base limitation | $ 9,000,000 | $ 9,000,000 | $ 9,000,000 | ||||||||||||
Senior Credit Facility | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Average interest rate (as a percent) | 4.41% | 4.41% | 4.41% | 4.41% | 4.41% | ||||||||||
Outstanding standby letters of credit | $ 791,000,000 | $ 791,000,000 | $ 791,000,000 | ||||||||||||
Outstanding principal | $ 750,000,000 | $ 750,000,000 | $ 750,000,000 | 0 | |||||||||||
Senior Term Loan | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Average interest rate (as a percent) | 3.98% | 3.98% | 3.98% | 3.98% | 3.98% | ||||||||||
Outstanding principal | $ 693,000,000 | $ 693,000,000 | $ 693,000,000 | 697,000,000 | |||||||||||
6.75% Senior Notes due April 2019 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Interest rate | 6.75% | 6.75% | 6.75% | 6.75% | 6.75% | ||||||||||
Outstanding principal | $ 450,000,000 | $ 450,000,000 | $ 450,000,000 | 450,000,000 | |||||||||||
5.50% Senior Notes due October 2024 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Interest rate | 5.50% | 5.50% | 5.50% | 5.50% | 5.50% | ||||||||||
Outstanding principal | $ 800,000,000 | $ 800,000,000 | $ 800,000,000 | 800,000,000 | |||||||||||
Senior Second Priority Secured Notes, 7.625%, Due 2022 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Interest rate | 7.625% | 7.625% | 7.625% | 7.625% | 7.625% | ||||||||||
Face Amount | $ 1,250,000,000 | $ 1,250,000,000 | $ 1,250,000,000 | ||||||||||||
U.S. Vehicle RCF | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Average interest rate (as a percent) | 3.55% | 3.55% | 3.55% | 3.55% | 3.55% | ||||||||||
Availability under borrowing base limitation | $ 10,000,000 | $ 10,000,000 | $ 10,000,000 | ||||||||||||
Outstanding principal | 168,000,000 | 168,000,000 | 168,000,000 | 193,000,000 | |||||||||||
Vehicle Debt | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Availability under borrowing base limitation | 30,000,000 | 30,000,000 | 30,000,000 | ||||||||||||
Senior Term Loan and Senior Facilities | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Face Amount | $ 700,000,000 | ||||||||||||||
Senior Revolving Credit Facility | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Decrease to borrowing capacity of revolving credit facility | 150,000,000 | ||||||||||||||
Long-term Line of Credit | $ 1,550,000,000 | $ 1,550,000,000 | $ 1,550,000,000 | ||||||||||||
Unrestricted cash netting cap | $ 500,000,000 | ||||||||||||||
4.25% Senior Notes due April 2018 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Interest rate | 4.25% | 4.25% | 4.25% | 4.25% | 4.25% | ||||||||||
Repayments of debt and early redemption premiums | $ 266,000,000 | ||||||||||||||
Repayments of debt | 250,000,000 | ||||||||||||||
Outstanding principal | $ 0 | $ 0 | $ 0 | 250,000,000 | |||||||||||
HFLF Series 2013-2 Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Average interest rate (as a percent) | 2.11% | 2.11% | 2.11% | 2.11% | 2.11% | ||||||||||
Outstanding principal | $ 150,000,000 | $ 150,000,000 | $ 150,000,000 | 410,000,000 | |||||||||||
HFLF Series 2017-1 Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Average interest rate (as a percent) | 2.18% | 2.18% | 2.18% | 2.18% | 2.18% | ||||||||||
Outstanding principal | $ 500,000,000 | $ 500,000,000 | $ 500,000,000 | $ 500,000,000 | 0 | ||||||||||
HFLF Series 2016-1 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Average interest rate (as a percent) | 2.35% | 2.35% | 2.35% | 2.35% | 2.35% | ||||||||||
Outstanding principal | $ 387,000,000 | $ 387,000,000 | $ 387,000,000 | 385,000,000 | |||||||||||
4.125% Due October 2021 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Interest rate | 4.125% | 4.125% | 4.125% | 4.125% | 4.125% | ||||||||||
Face Amount | € | € 225 | ||||||||||||||
Outstanding principal | $ 256,000,000 | $ 256,000,000 | $ 256,000,000 | 234,000,000 | |||||||||||
Senior Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Average interest rate (as a percent) | 6.22% | 6.22% | 6.22% | 6.22% | 6.22% | ||||||||||
Outstanding principal | $ 2,950,000,000 | $ 2,950,000,000 | $ 2,950,000,000 | 3,200,000,000 | |||||||||||
HVF II Series 2017-A Notes, Due October 2018 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Face Amount | 500,000,000 | ||||||||||||||
HVF II Series 2013-A | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Average interest rate (as a percent) | 2.39% | 2.39% | 2.39% | 2.39% | 2.39% | ||||||||||
Outstanding principal | $ 3,223,000,000 | 3,100,000,000 | $ 3,223,000,000 | $ 3,223,000,000 | 1,844,000,000 | ||||||||||
Debt instrument, increase (decrease), net | $ 300,000,000 | 250,000,000 | |||||||||||||
HVF II Series 2013-B | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Average interest rate (as a percent) | 2.34% | 2.34% | 2.34% | 2.34% | 2.34% | ||||||||||
Outstanding principal | $ 268,000,000 | $ 581,000,000 | $ 268,000,000 | $ 268,000,000 | $ 626,000,000 | ||||||||||
Forecast | UK Leveraged Financing | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Face Amount | € | € 250 | ||||||||||||||
Forecast | U.S. Vehicle RCF | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Decrease to borrowing capacity of revolving credit facility | $ 67,000,000 | ||||||||||||||
Letter of Credit | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Outstanding standby letters of credit | $ 804,000,000 | 804,000,000 | 804,000,000 | ||||||||||||
Loss on extinguishment of debt | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Adjustments: | (8,000,000) | (20,000,000) | (8,000,000) | (20,000,000) | |||||||||||
The Hertz Corporation | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Adjustments: | (244,000,000) | (35,000,000) | (537,000,000) | (112,000,000) | |||||||||||
The Hertz Corporation | Loss on extinguishment of debt | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Adjustments: | $ (8,000,000) | $ (20,000,000) | (8,000,000) | (20,000,000) | |||||||||||
The Hertz Corporation | Loss on extinguishment of debt | Senior Revolving Credit Facility | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Adjustments: | 2,000,000 | ||||||||||||||
The Hertz Corporation | Loss on extinguishment of debt | 4.25% Senior Notes due April 2018 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Adjustments: | 6,000,000 | ||||||||||||||
Non-vehicle | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Repayments of debt | 354,000,000 | 2,843,000,000 | |||||||||||||
Increase (decrease) in restricted cash | 0 | 2,000,000 | |||||||||||||
Non-vehicle | The Hertz Corporation | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Repayments of debt | 354,000,000 | 2,843,000,000 | |||||||||||||
Increase (decrease) in restricted cash | $ 834,000,000 | $ 2,000,000 | |||||||||||||
Affiliated Entity | HFLF Series 2016-1, Class E | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Proceeds from sale of debt | $ 15,000,000 |
Debt (Borrowing Capacity) (Deta
Debt (Borrowing Capacity) (Details) $ in Millions | Jun. 30, 2017USD ($) |
Debt Instrument [Line Items] | |
Remaining capacity | $ 1,213 |
Availability under borrowing base limitation | 39 |
Senior ABL Facility | |
Debt Instrument [Line Items] | |
Remaining capacity | 9 |
Availability under borrowing base limitation | 9 |
Non-Vehicle Debt | |
Debt Instrument [Line Items] | |
Remaining capacity | 9 |
Availability under borrowing base limitation | 9 |
U.S. Vehicle RCF | |
Debt Instrument [Line Items] | |
Remaining capacity | 32 |
Availability under borrowing base limitation | 10 |
HVF II U.S. ABS Program | |
Debt Instrument [Line Items] | |
Remaining capacity | 674 |
Availability under borrowing base limitation | 20 |
HFLF Medium Term Notes | |
Debt Instrument [Line Items] | |
Remaining capacity | 350 |
Availability under borrowing base limitation | 0 |
European Revolving Credit Facility | |
Debt Instrument [Line Items] | |
Remaining capacity | 0 |
Availability under borrowing base limitation | 0 |
European Securitization | |
Debt Instrument [Line Items] | |
Remaining capacity | 69 |
Availability under borrowing base limitation | 0 |
Canadian Securitization | |
Debt Instrument [Line Items] | |
Remaining capacity | 0 |
Availability under borrowing base limitation | 0 |
Australian Securitization | |
Debt Instrument [Line Items] | |
Remaining capacity | 70 |
Availability under borrowing base limitation | 0 |
Capitalized Leases | |
Debt Instrument [Line Items] | |
Remaining capacity | 0 |
Availability under borrowing base limitation | 0 |
New Zealand RCF | |
Debt Instrument [Line Items] | |
Remaining capacity | 9 |
Availability under borrowing base limitation | 0 |
Vehicle Debt | |
Debt Instrument [Line Items] | |
Remaining capacity | 1,204 |
Availability under borrowing base limitation | $ 30 |
Debt (Covenant Ratios) (Details
Debt (Covenant Ratios) (Details) | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 |
Debt Instrument [Line Items] | |||
Maximum consolidated leverage ratio | 3.25 | ||
Forecast | |||
Debt Instrument [Line Items] | |||
Maximum consolidated leverage ratio | 3 | 3.25 |
Employee Retirement Benefits (N
Employee Retirement Benefits (Net Periodic Pension Expense) (Details) - Pension Plan - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
U.S. Pension Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 0 | $ 0 | $ 0 | $ 1 |
Interest cost | 6 | 7 | 11 | 11 |
Expected return on plan assets | (7) | (7) | (13) | (14) |
Net amortizations | 1 | 1 | 2 | 4 |
Settlement loss | 1 | 1 | ||
Net periodic pension expense (benefit) | 0 | 1 | 1 | 3 |
Non-U.S. Pension Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 1 | 1 | 1 | 1 |
Interest cost | 1 | 2 | 3 | 4 |
Expected return on plan assets | (3) | (3) | (5) | (6) |
Net amortizations | 1 | 0 | 1 | 0 |
Settlement loss | 0 | 0 | ||
Net periodic pension expense (benefit) | $ 0 | $ 0 | $ 0 | $ (1) |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Tax Expense (Benefit) [Abstract] | ||||
Compensation expense | $ 5 | $ 6 | $ 12 | $ 12 |
Income tax benefit | (2) | (2) | (5) | (5) |
Total | 3 | $ 4 | 7 | $ 7 |
Unrecognized compensation cost | 26 | $ 26 | ||
Compensation cost not yet recognized, period for recognition | 1 year 8 months 4 days | |||
2017 Executive Incentive Compensation Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected number of awards expected under the plan | 540,000 | |||
Income Tax Expense (Benefit) [Abstract] | ||||
Compensation expense | 2 | $ 3 | ||
2016 Omnibus Plan | ||||
Income Tax Expense (Benefit) [Abstract] | ||||
Compensation expense | $ 3 | $ 9 | ||
2016 Omnibus Plan | Equity Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Grants in period, net of forfeitures | 557,882 | |||
Weighted average grant date fair value (in dollars per share) | $ 9.44 | |||
2016 Omnibus Plan | Equity Option | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 3 years | |||
2016 Omnibus Plan | Equity Option | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 5 years | |||
2016 Omnibus Plan | Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Grants in period, net of forfeitures | 545,283 | |||
Weighted average grant date fair value (in dollars per share) | $ 20.26 | |||
2016 Omnibus Plan | Performance Stock Units (PSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Grants in period, net of forfeitures | 423,052 | |||
Weighted average grant date fair value (in dollars per share) | $ 22.08 | |||
2016 Omnibus Plan | Performance Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Grants in period, net of forfeitures | 664,643 | |||
Weighted average grant date fair value (in dollars per share) | $ 22.19 |
Restructuring (Details)
Restructuring (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Restructuring details | ||||
Restructuring charges | $ 2 | $ 18 | $ 3 | $ 24 |
Restructuring reserve | ||||
Balance as of December 31, 2016 | 27 | |||
Charges incurred | 3 | |||
Cash payments | (6) | |||
Balance as of June 30, 2017 | 24 | 24 | ||
U.S. Rental Car | ||||
Restructuring details | ||||
Restructuring charges | 1 | 15 | 1 | 21 |
International Rental Car | ||||
Restructuring details | ||||
Restructuring charges | 0 | 3 | 1 | 3 |
Corporate | ||||
Restructuring details | ||||
Restructuring charges | 1 | 0 | 1 | 0 |
Direct vehicle and operating | ||||
Restructuring details | ||||
Restructuring charges | 0 | 8 | 0 | 9 |
Selling, general and administrative | ||||
Restructuring details | ||||
Restructuring charges | 2 | 10 | 3 | 15 |
Termination benefits | ||||
Restructuring details | ||||
Restructuring charges | 2 | 10 | 3 | 16 |
Restructuring reserve | ||||
Balance as of December 31, 2016 | 13 | |||
Charges incurred | 3 | |||
Cash payments | (4) | |||
Balance as of June 30, 2017 | 12 | 12 | ||
Facility closure and lease obligation costs | ||||
Restructuring details | ||||
Restructuring charges | 0 | $ 5 | 0 | $ 5 |
Other | ||||
Restructuring reserve | ||||
Balance as of December 31, 2016 | 14 | |||
Charges incurred | 0 | |||
Cash payments | (2) | |||
Balance as of June 30, 2017 | $ 12 | $ 12 |
Income Tax (Provision) Benefit
Income Tax (Provision) Benefit (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Tax Contingency [Line Items] | ||||
Effective tax rate (as percent) | 36.00% | 20.00% | 29.00% | 29.00% |
Income tax (provision) benefit | $ 87 | $ 7 | $ 158 | $ 32 |
The Hertz Corporation | ||||
Income Tax Contingency [Line Items] | ||||
Effective tax rate (as percent) | 35.00% | 20.00% | 29.00% | 29.00% |
Income tax (provision) benefit | $ 86 | $ 7 | $ 157 | $ 32 |
Fair Value Measurements (Cash a
Fair Value Measurements (Cash and Cash Equivalents and Investments) (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $ 548 | $ 615 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 72 | 222 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 476 | 393 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 548 | 606 |
Money market funds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 72 | 213 |
Money market funds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 476 | 393 |
Money market funds | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Equity and other securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 9 |
Equity and other securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 9 |
Equity and other securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Equity and other securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $ 0 | $ 0 |
Fair Value Measurements (Financ
Fair Value Measurements (Financial Instruments) (Details) - Fair Value, Measurements, Recurring - Level 2 - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Fair Value of Financial Instruments [Abstract] | ||
Nominal Unpaid Principal Balance | $ 16,890 | $ 13,619 |
Aggregate Fair Value | 16,591 | 13,461 |
Other Non-Vehicle Debt | ||
Fair Value of Financial Instruments [Abstract] | ||
Nominal Unpaid Principal Balance | 5,679 | 3,934 |
Aggregate Fair Value | 5,401 | 3,791 |
Vehicle Debt | ||
Fair Value of Financial Instruments [Abstract] | ||
Nominal Unpaid Principal Balance | 11,211 | 9,685 |
Aggregate Fair Value | $ 11,190 | $ 9,670 |
Fair Value Measurements (Assets
Fair Value Measurements (Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2017 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Equity method investment, other than temporary impairment | $ 30 | $ 30 | |||
Intangible asset impairments | $ 86 | $ 0 | 86 | $ 0 | |
Fair Value, Measurements, Nonrecurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Long-lived assets held for sale | 109 | 109 | |||
Long-lived assets held for sale, Total Fair Value (Income)/Loss Adjustments | 0 | ||||
Liabilities held for sale | 13 | 13 | |||
Liabilities held for sale, Total Fair Value (Income)/Loss Adjustments | 0 | ||||
Equity method investments | 4 | 4 | |||
Intangible asset impairments | 86 | ||||
Fair Value, Measurements, Nonrecurring | Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Long-lived assets held for sale | 0 | 0 | |||
Liabilities held for sale | 0 | 0 | |||
Equity method investments | 0 | 0 | |||
Intangible assets | 0 | 0 | |||
Fair Value, Measurements, Nonrecurring | Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Long-lived assets held for sale | 109 | 109 | |||
Liabilities held for sale | 13 | 13 | |||
Equity method investments | 0 | 0 | |||
Intangible assets | 0 | 0 | |||
Fair Value, Measurements, Nonrecurring | Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Long-lived assets held for sale | 0 | 0 | |||
Liabilities held for sale | 0 | 0 | |||
Equity method investments | 4 | 4 | |||
Intangible assets | $ 934 | $ 934 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended | ||
Mar. 31, 2017 | Apr. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Indefinite-lived Intangible Assets [Line Items] | ||||
Payments to Acquire Equity Method Investments | $ 45 | |||
Other than temporary impairment of equity method investment | $ 30 | $ 30 | ||
Impairment charges and asset write-downs | $ 116 | $ 3 |
Contingencies and Off-Balance57
Contingencies and Off-Balance Sheet Commitments (Details) - USD ($) $ in Millions | 1 Months Ended | ||||
Jan. 31, 2016 | Oct. 31, 2014 | Jun. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2015 | |
Loss Contingencies [Line Items] | |||||
Public liability and property damage | $ 423 | $ 407 | |||
Concession Fee Recoveries | |||||
Loss Contingencies [Line Items] | |||||
Litigation settlement amount | $ 42 | ||||
Litigation settlement interest | 11 | ||||
Litigation settlement expense | 3 | ||||
French Road Tax | |||||
Loss Contingencies [Line Items] | |||||
Additional reserve established | $ 23 | ||||
Ministry of the Economy, Finance and Industry, France | French Road Tax | |||||
Loss Contingencies [Line Items] | |||||
Payments for other taxes | $ 9 | ||||
Restitution Fund | Concession Fee Recoveries | |||||
Loss Contingencies [Line Items] | |||||
Litigation settlement expense | $ 3 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | |
Related Party Transaction [Line Items] | ||||
Due from related parties | $ 425 | $ 425 | $ 425 | |
Affiliated Entity | ||||
Related Party Transaction [Line Items] | ||||
Purchases from related party | 2 | 4 | ||
Affiliated Entity | Master Loan Agreement | ||||
Related Party Transaction [Line Items] | ||||
Due from related parties | 105 | 105 | $ 102 | |
Affiliated Entity | Tax Related Liability | ||||
Related Party Transaction [Line Items] | ||||
Due from related parties | $ 65 | $ 65 | $ 65 |
Earnings (Loss) Per Share - H59
Earnings (Loss) Per Share - Hertz Global (Details) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017USD ($)$ / sharesshares | Jun. 30, 2016USD ($)$ / sharesshares | Jun. 30, 2017USD ($)$ / sharesshares | Jun. 30, 2016USD ($)$ / sharesshares | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Net income (loss) | $ | $ (158) | $ (28) | $ (381) | $ (80) |
Net income (loss) from discontinued operations | $ | 0 | (15) | 0 | (13) |
Net income (loss) | $ | $ (158) | $ (43) | $ (381) | $ (93) |
Basic weighted average common shares | shares | 83 | 85 | 83 | 85 |
Dilutive stock options, RSUs, PSUs and PSAs | shares | 0 | 0 | 0 | 0 |
Weighted average shares used to calculate diluted earnings per share | shares | 83 | 85 | 83 | 85 |
Earnings (loss) per share: | ||||
Basic earnings (loss) per share from continuing operations (in dollars per share) | $ (1.90) | $ (0.33) | $ (4.59) | $ (0.94) |
Basic earnings (loss) per share from discontinued operations (in dollars per share) | 0 | (0.18) | 0 | (0.15) |
Basic earnings (loss) per share (in dollars per share) | (1.90) | (0.51) | (4.59) | (1.09) |
Diluted earnings (loss) per share from continuing operations (in dollars per share) | (1.90) | (0.33) | (4.59) | (0.94) |
Diluted earnings (loss) per share from discontinued operations (in dollars per share) | 0 | (0.18) | 0 | (0.15) |
Diluted earnings (loss) per share (in dollars per share) | $ (1.90) | $ (0.51) | $ (4.59) | $ (1.09) |
Antidilutive stock options, RSUs and PSUs | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive stock options, RSUs, PSUs and PSAs | shares | 3 | 1 | 3 | 2 |
Hertz Global Holdings | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Stock distribution ratio | 0.2 |
Segment Information (Details)
Segment Information (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)segment | Jun. 30, 2016USD ($) | Dec. 31, 2016USD ($) | |
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||||
Number of reportable segments | segment | 3 | ||||||
Revenues | $ 2,224 | $ 2,270 | $ 4,140 | $ 4,253 | |||
Depreciation of revenue earning vehicles and lease charges, net | 743 | 629 | 1,444 | 1,245 | |||
Total Assets | $ 22,433 | 22,433 | 22,433 | $ 19,155 | |||
Adjusted pre-tax income (loss): | (82) | 55 | (295) | (53) | |||
Adjustments: | (245) | (35) | (539) | (112) | |||
Intangible asset impairments | 86 | 0 | 86 | 0 | |||
Equity method investment, other than temporary impairment | $ 30 | 30 | |||||
Purchase accounting | |||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||||
Adjustments: | (16) | (18) | (31) | (34) | |||
Other | |||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||||
Adjustments: | (10) | (12) | (21) | (25) | |||
Loss on extinguishment of debt | |||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||||
Adjustments: | (8) | (20) | (8) | (20) | |||
Restructuring and restructuring related charges | |||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||||
Adjustments: | (5) | (18) | (13) | (29) | |||
Sale of CAR, Inc. Common Stock | |||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||||
Adjustments: | 0 | 0 | 3 | 75 | |||
Impairment charges and asset write-downs | |||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||||
Adjustments: | (86) | (3) | (116) | (3) | |||
Finance and Information Technology Transformation Costs | |||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||||
Adjustments: | (20) | (19) | (39) | (26) | |||
Other | |||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||||
Adjustments: | (18) | 0 | (19) | 3 | |||
U.S. Rental Car | Dollar Thrifty tradename | |||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||||
Intangible asset impairments | 86 | ||||||
Operating Segments | |||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||||
Adjusted pre-tax income (loss): | 38 | 194 | (61) | 209 | |||
Operating Segments | U.S. Rental Car | |||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||||
Revenues | 1,519 | 1,584 | 2,872 | 2,990 | |||
Depreciation of revenue earning vehicles and lease charges, net | 524 | 417 | 1,023 | 836 | |||
Total Assets | 13,639 | 13,639 | 13,639 | 12,876 | |||
Adjusted pre-tax income (loss): | (37) | 143 | (152) | 138 | |||
Operating Segments | International Rental Car | |||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||||
Revenues | 543 | 540 | 955 | 973 | |||
Depreciation of revenue earning vehicles and lease charges, net | 100 | 98 | 185 | 184 | |||
Total Assets | 4,852 | 4,852 | 4,852 | 3,578 | |||
Adjusted pre-tax income (loss): | 56 | 34 | 52 | 36 | |||
Operating Segments | All Other Operations | |||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||||
Revenues | 162 | 146 | 313 | 290 | |||
Depreciation of revenue earning vehicles and lease charges, net | 119 | 114 | 236 | 225 | |||
Total Assets | 1,646 | 1,646 | 1,646 | 1,612 | |||
Adjusted pre-tax income (loss): | 19 | 17 | 39 | 35 | |||
Corporate, Non-Segment | |||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||||
Total Assets | 2,296 | 2,296 | 2,296 | 1,089 | |||
Adjusted pre-tax income (loss): | (120) | (139) | (234) | (262) | |||
The Hertz Corporation | |||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||||
Revenues | 2,224 | 2,270 | 4,140 | 4,253 | |||
Depreciation of revenue earning vehicles and lease charges, net | 743 | 629 | 1,444 | 1,245 | |||
Total Assets | $ 22,433 | 22,433 | 22,433 | $ 19,155 | |||
Adjusted pre-tax income (loss): | (81) | 55 | (293) | (53) | |||
Adjustments: | (244) | (35) | (537) | (112) | |||
Intangible asset impairments | 86 | 0 | 86 | 0 | |||
The Hertz Corporation | Purchase accounting | |||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||||
Adjustments: | (16) | (18) | (31) | (34) | |||
The Hertz Corporation | Other | |||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||||
Adjustments: | (10) | (12) | (21) | (25) | |||
The Hertz Corporation | Loss on extinguishment of debt | |||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||||
Adjustments: | (8) | (20) | (8) | (20) | |||
The Hertz Corporation | Loss on extinguishment of debt | 4.25% Senior Notes due April 2018 | |||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||||
Adjustments: | 6 | ||||||
The Hertz Corporation | Loss on extinguishment of debt | Senior Revolving Credit Facility | |||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||||
Adjustments: | 2 | ||||||
The Hertz Corporation | Restructuring and restructuring related charges | |||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||||
Adjustments: | (5) | (18) | (13) | (29) | |||
The Hertz Corporation | Sale of CAR, Inc. Common Stock | |||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||||
Adjustments: | 0 | 0 | 3 | 75 | |||
The Hertz Corporation | Impairment charges and asset write-downs | |||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||||
Adjustments: | (86) | (3) | (116) | (3) | |||
The Hertz Corporation | Finance and Information Technology Transformation Costs | |||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||||
Adjustments: | (20) | (19) | (39) | (26) | |||
The Hertz Corporation | Other | |||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||||
Adjustments: | (18) | 0 | (19) | 3 | |||
Other Labor-related Expenses | 6 | ||||||
Liability for Unpaid Claims and Claims Adjustment Expense, Claims Paid | 5 | ||||||
Gain (Loss) Related to Litigation Settlement | 9 | ||||||
The Hertz Corporation | Operating Segments | |||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||||
Adjusted pre-tax income (loss): | 38 | 194 | (61) | 209 | |||
The Hertz Corporation | Operating Segments | U.S. Rental Car | |||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||||
Adjusted pre-tax income (loss): | (37) | 143 | (152) | 138 | |||
The Hertz Corporation | Operating Segments | International Rental Car | |||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||||
Adjusted pre-tax income (loss): | 56 | 34 | 52 | 36 | |||
The Hertz Corporation | Operating Segments | All Other Operations | |||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||||
Adjusted pre-tax income (loss): | 19 | 17 | 39 | 35 | |||
The Hertz Corporation | Corporate, Non-Segment | |||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||||
Adjusted pre-tax income (loss): | (119) | (139) | (232) | (262) | |||
The Hertz Corporation | Segment Reconciling Items | |||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||||
Adjusted pre-tax income (loss): | $ 1 | $ 0 | $ 2 | $ 0 | |||
Product Concentration Risk | Cost of Goods, Segment | All Other Operations | |||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||||
Concentration risk, percentage (less than) | 2.00% | ||||||
Product Concentration Risk | Revenues | All Other Operations | |||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||||
Concentration risk, percentage (less than) | 2.00% |
Guarantor and Non-Guarantor C61
Guarantor and Non-Guarantor Condensed Consolidating Financial Information - Hertz (Narrative) (Details) - USD ($) $ in Millions | 6 Months Ended | 9 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Sep. 30, 2016 | Dec. 31, 2016 | |
Condensed Financial Statements, Captions [Line Items] | ||||
Prepaid expenses and other assets | $ 565 | $ 578 | ||
Adjustment to net cash provided by (used in) operating activities | 982 | $ 1,014 | ||
Adjustment to cash flows from investing activities | (2,904) | (1,929) | ||
Non-Guarantor Subsidiaries | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Prepaid expenses and other assets | 236 | 199 | ||
Adjustment to net cash provided by (used in) operating activities | 2,168 | 2,908 | ||
Adjustment to cash flows from investing activities | (2,312) | (2,164) | ||
Parent (The Hertz Corporation) | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Prepaid expenses and other assets | 5,410 | 4,821 | ||
Adjustment to net cash provided by (used in) operating activities | (377) | (1,492) | ||
Adjustment to cash flows from investing activities | $ 329 | $ 980 | ||
Restatement Adjustment | Non-Guarantor Subsidiaries | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Prepaid expenses and other assets | $ 915 | |||
Adjustment to net cash provided by (used in) operating activities | $ 411 | |||
Adjustment to cash flows from investing activities | 411 | |||
Restatement Adjustment | Parent (The Hertz Corporation) | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Adjustment to net cash provided by (used in) operating activities | 411 | |||
Adjustment to cash flows from investing activities | $ 411 |
Guarantor and Non-Guarantor C62
Guarantor and Non-Guarantor Condensed Consolidating Financial Information - Hertz (Balance Sheet) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Dec. 31, 2015 |
ASSETS | ||||
Cash and cash equivalents | $ 1,141 | $ 816 | $ 1,285 | $ 474 |
Restricted cash and cash equivalents: | 1,062 | 278 | ||
Receivables, net of allowance | 1,210 | 1,283 | ||
Due from related parties | 425 | 425 | ||
Prepaid expenses and other assets | 565 | 578 | ||
Revenue earning vehicles, net | 13,186 | 10,818 | ||
Property and equipment, net | 839 | 858 | ||
Other intangible assets, net | 3,239 | 3,332 | ||
Goodwill | 1,082 | 1,081 | ||
Assets held for sale | 109 | 111 | ||
Total assets | 22,433 | 19,155 | ||
LIABILITIES AND EQUITY | ||||
Total accounts payable | 1,381 | 821 | ||
Accrued liabilities | 963 | 980 | ||
Accrued taxes, net | 166 | 165 | ||
Debt | 16,809 | 13,541 | ||
Public liability and property damage | 423 | 407 | ||
Deferred income taxes, net | 1,922 | 2,149 | ||
Liabilities held for sale | 13 | 17 | ||
Total liabilities | 21,677 | 18,080 | ||
Equity: | ||||
Stockholder's equity | 756 | 1,075 | ||
Total liabilities and equity | 22,433 | 19,155 | ||
Eliminations | ||||
ASSETS | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Restricted cash and cash equivalents: | 0 | 0 | ||
Receivables, net of allowance | 0 | 0 | ||
Due from related parties | (16,734) | (17,241) | ||
Prepaid expenses and other assets | (5,158) | (4,525) | ||
Revenue earning vehicles, net | 0 | 0 | ||
Property and equipment, net | 0 | 0 | ||
Investment in subsidiaries, net | (6,895) | (6,712) | ||
Other intangible assets, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Assets held for sale | 0 | |||
Assets of discontinued operations | 0 | |||
Total assets | (28,787) | (28,478) | ||
LIABILITIES AND EQUITY | ||||
Due to affiliates | (16,734) | (17,241) | ||
Total accounts payable | 0 | 0 | ||
Accrued liabilities | 0 | 0 | ||
Accrued taxes, net | (3,168) | (2,812) | ||
Debt | 0 | 0 | ||
Public liability and property damage | 0 | 0 | ||
Deferred income taxes, net | (1,990) | (1,713) | ||
Liabilities held for sale | 0 | |||
Liabilities of discontinued operations | 0 | |||
Total liabilities | (21,892) | (21,766) | ||
Equity: | ||||
Stockholder's equity | (6,895) | (6,712) | ||
Total liabilities and equity | (28,787) | (28,478) | ||
Parent (The Hertz Corporation) | ||||
ASSETS | ||||
Cash and cash equivalents | 841 | 458 | 811 | 179 |
Restricted cash and cash equivalents: | 888 | 53 | ||
Receivables, net of allowance | 271 | 752 | ||
Due from related parties | 3,400 | 3,668 | ||
Prepaid expenses and other assets | 5,410 | 4,821 | ||
Revenue earning vehicles, net | 317 | 361 | ||
Property and equipment, net | 631 | 656 | ||
Investment in subsidiaries, net | 6,201 | 6,114 | ||
Other intangible assets, net | 112 | 89 | ||
Goodwill | 102 | 102 | ||
Assets held for sale | 0 | |||
Assets of discontinued operations | 0 | |||
Total assets | 18,173 | 17,074 | ||
LIABILITIES AND EQUITY | ||||
Due to affiliates | 10,461 | 10,833 | ||
Total accounts payable | 380 | 279 | ||
Accrued liabilities | 529 | 557 | ||
Accrued taxes, net | 86 | 78 | ||
Debt | 5,800 | 4,086 | ||
Public liability and property damage | 162 | 166 | ||
Deferred income taxes, net | 0 | 0 | ||
Liabilities held for sale | 0 | |||
Liabilities of discontinued operations | 0 | |||
Total liabilities | 17,418 | 15,999 | ||
Equity: | ||||
Stockholder's equity | 755 | 1,075 | ||
Total liabilities and equity | 18,173 | 17,074 | ||
Guarantor Subsidiaries | ||||
ASSETS | ||||
Cash and cash equivalents | 11 | 12 | 11 | 17 |
Restricted cash and cash equivalents: | 7 | 5 | ||
Receivables, net of allowance | 160 | 167 | ||
Due from related parties | 4,176 | 3,823 | ||
Prepaid expenses and other assets | 77 | 83 | ||
Revenue earning vehicles, net | 3 | 7 | ||
Property and equipment, net | 65 | 70 | ||
Investment in subsidiaries, net | 694 | 598 | ||
Other intangible assets, net | 3,111 | 3,223 | ||
Goodwill | 943 | 943 | ||
Assets held for sale | 0 | |||
Assets of discontinued operations | 0 | |||
Total assets | 9,247 | 8,931 | ||
LIABILITIES AND EQUITY | ||||
Due to affiliates | 1,990 | 1,900 | ||
Total accounts payable | 97 | 90 | ||
Accrued liabilities | 90 | 103 | ||
Accrued taxes, net | 23 | 18 | ||
Debt | 0 | 0 | ||
Public liability and property damage | 42 | 43 | ||
Deferred income taxes, net | 2,077 | 2,065 | ||
Liabilities held for sale | 0 | |||
Liabilities of discontinued operations | 0 | |||
Total liabilities | 4,319 | 4,219 | ||
Equity: | ||||
Stockholder's equity | 4,928 | 4,712 | ||
Total liabilities and equity | 9,247 | 8,931 | ||
Non-Guarantor Subsidiaries | ||||
ASSETS | ||||
Cash and cash equivalents | 289 | 346 | 463 | 278 |
Restricted cash and cash equivalents: | 167 | 220 | ||
Receivables, net of allowance | 779 | 364 | ||
Due from related parties | 9,158 | 9,750 | ||
Prepaid expenses and other assets | 236 | 199 | ||
Revenue earning vehicles, net | 12,866 | 10,450 | ||
Property and equipment, net | 143 | 132 | ||
Investment in subsidiaries, net | 0 | 0 | ||
Other intangible assets, net | 16 | 20 | ||
Goodwill | 37 | 36 | ||
Assets held for sale | 109 | |||
Assets of discontinued operations | 111 | |||
Total assets | 23,800 | 21,628 | ||
LIABILITIES AND EQUITY | ||||
Due to affiliates | 4,283 | 4,508 | ||
Total accounts payable | 904 | 452 | ||
Accrued liabilities | 344 | 320 | ||
Accrued taxes, net | 3,225 | 2,881 | ||
Debt | 11,009 | 9,455 | ||
Public liability and property damage | 219 | 198 | ||
Deferred income taxes, net | 1,836 | 1,797 | ||
Liabilities held for sale | 13 | |||
Liabilities of discontinued operations | 17 | |||
Total liabilities | 21,833 | 19,628 | ||
Equity: | ||||
Stockholder's equity | 1,967 | 2,000 | ||
Total liabilities and equity | 23,800 | 21,628 | ||
The Hertz Corporation | ||||
ASSETS | ||||
Cash and cash equivalents | 1,141 | 816 | $ 1,285 | $ 474 |
Restricted cash and cash equivalents: | 1,062 | 278 | ||
Receivables, net of allowance | 1,210 | 1,283 | ||
Due from related parties | 0 | 0 | ||
Prepaid expenses and other assets | 565 | 578 | ||
Revenue earning vehicles, net | 13,186 | 10,818 | ||
Property and equipment, net | 839 | 858 | ||
Investment in subsidiaries, net | 0 | 0 | ||
Other intangible assets, net | 3,239 | 3,332 | ||
Goodwill | 1,082 | 1,081 | ||
Assets held for sale | 109 | 111 | ||
Total assets | 22,433 | 19,155 | ||
LIABILITIES AND EQUITY | ||||
Due to affiliates | 0 | 0 | ||
Total accounts payable | 1,381 | 821 | ||
Accrued liabilities | 963 | 980 | ||
Accrued taxes, net | 166 | 165 | ||
Debt | 16,809 | 13,541 | ||
Public liability and property damage | 423 | 407 | ||
Deferred income taxes, net | 1,923 | 2,149 | ||
Liabilities held for sale | 13 | 17 | ||
Total liabilities | 21,678 | 18,080 | ||
Equity: | ||||
Stockholder's equity | 755 | 1,075 | ||
Total liabilities and equity | $ 22,433 | $ 19,155 |
Guarantor and Non-Guarantor C63
Guarantor and Non-Guarantor Condensed Consolidating Financial Information - Hertz (Statement of Operations and Comprehensive Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Condensed Financial Statements, Captions [Line Items] | ||||
Total revenues | $ 2,224 | $ 2,270 | $ 4,140 | $ 4,253 |
Expenses: | ||||
Direct vehicle and operating | 1,255 | 1,267 | 2,387 | 2,425 |
Depreciation of revenue earning vehicles and lease charges, net | 743 | 629 | 1,444 | 1,245 |
Selling, general and administrative | 223 | 234 | 442 | 459 |
Total interest expense, net | 158 | 174 | 289 | 325 |
Intangible asset impairments | 86 | 0 | 86 | 0 |
Other (income) expense, net | 4 | 1 | 31 | (89) |
Total expenses | 2,469 | 2,305 | 4,679 | 4,365 |
Income (loss) from continuing operations before income taxes and equity in earnings (losses) of subsidiaries | (245) | (35) | (539) | (112) |
(Provision) benefit for taxes on income (loss) of continuing operations | 87 | 7 | 158 | 32 |
Net income (loss) from continuing operations | (158) | (28) | (381) | (80) |
Net income (loss) from discontinued operations | 0 | (15) | 0 | (13) |
Net income (loss) | (158) | (43) | (381) | (93) |
Other comprehensive income (loss), net of tax | (7) | (45) | 6 | 9 |
Comprehensive income (loss) | (165) | (88) | (375) | (84) |
Eliminations | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Total revenues | (1,171) | (943) | (1,989) | (1,662) |
Expenses: | ||||
Direct vehicle and operating | 0 | 0 | 0 | 0 |
Depreciation of revenue earning vehicles and lease charges, net | (1,108) | (943) | (1,867) | (1,661) |
Selling, general and administrative | 0 | 0 | 0 | (1) |
Total interest expense, net | 0 | 0 | 0 | 0 |
Intangible asset impairments | 0 | 0 | ||
Other (income) expense, net | 0 | 0 | 0 | 0 |
Total expenses | (1,108) | (943) | (1,867) | (1,662) |
Income (loss) from continuing operations before income taxes and equity in earnings (losses) of subsidiaries | (63) | 0 | (122) | 0 |
(Provision) benefit for taxes on income (loss) of continuing operations | 0 | 0 | 0 | 0 |
Equity in earnings (losses) of subsidiaries, net of tax | (366) | (451) | (602) | (746) |
Net income (loss) from continuing operations | (429) | (451) | (724) | (746) |
Net income (loss) from discontinued operations | 0 | 0 | 0 | 0 |
Net income (loss) | (429) | (451) | (724) | (746) |
Other comprehensive income (loss), net of tax | 5 | 28 | (7) | (24) |
Comprehensive income (loss) | (424) | (423) | (731) | (770) |
Parent (The Hertz Corporation) | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Total revenues | 1,170 | 1,192 | 2,220 | 2,258 |
Expenses: | ||||
Direct vehicle and operating | 741 | 732 | 1,429 | 1,417 |
Depreciation of revenue earning vehicles and lease charges, net | 1,024 | 759 | 1,761 | 1,380 |
Selling, general and administrative | 156 | 158 | 306 | 304 |
Total interest expense, net | 101 | 119 | 183 | 207 |
Intangible asset impairments | 0 | 0 | ||
Other (income) expense, net | 0 | 1 | 33 | 1 |
Total expenses | 2,022 | 1,769 | 3,712 | 3,309 |
Income (loss) from continuing operations before income taxes and equity in earnings (losses) of subsidiaries | (852) | (577) | (1,492) | (1,051) |
(Provision) benefit for taxes on income (loss) of continuing operations | 358 | 227 | 572 | 415 |
Equity in earnings (losses) of subsidiaries, net of tax | 336 | 307 | 540 | 545 |
Net income (loss) from continuing operations | (158) | (43) | (380) | (91) |
Net income (loss) from discontinued operations | 0 | 0 | 0 | 0 |
Net income (loss) | (158) | (43) | (380) | (91) |
Other comprehensive income (loss), net of tax | (7) | (45) | 6 | 9 |
Comprehensive income (loss) | (165) | (88) | (374) | (82) |
Guarantor Subsidiaries | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Total revenues | 354 | 385 | 661 | 725 |
Expenses: | ||||
Direct vehicle and operating | 181 | 192 | 350 | 381 |
Depreciation of revenue earning vehicles and lease charges, net | 113 | 214 | 215 | 349 |
Selling, general and administrative | 8 | 11 | 19 | 24 |
Total interest expense, net | (25) | (21) | (47) | (22) |
Intangible asset impairments | 86 | 86 | ||
Other (income) expense, net | 0 | (1) | 0 | (10) |
Total expenses | 363 | 395 | 623 | 722 |
Income (loss) from continuing operations before income taxes and equity in earnings (losses) of subsidiaries | (9) | (10) | 38 | 3 |
(Provision) benefit for taxes on income (loss) of continuing operations | 1 | 3 | (14) | (2) |
Equity in earnings (losses) of subsidiaries, net of tax | 30 | 144 | 62 | 201 |
Net income (loss) from continuing operations | 22 | 137 | 86 | 202 |
Net income (loss) from discontinued operations | 0 | (4) | 0 | (1) |
Net income (loss) | 22 | 133 | 86 | 201 |
Other comprehensive income (loss), net of tax | 3 | (5) | 3 | (5) |
Comprehensive income (loss) | 25 | 128 | 89 | 196 |
Non-Guarantor Subsidiaries | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Total revenues | 1,871 | 1,636 | 3,248 | 2,932 |
Expenses: | ||||
Direct vehicle and operating | 333 | 343 | 608 | 627 |
Depreciation of revenue earning vehicles and lease charges, net | 714 | 599 | 1,335 | 1,177 |
Selling, general and administrative | 59 | 65 | 117 | 132 |
Total interest expense, net | 81 | 76 | 151 | 140 |
Intangible asset impairments | 0 | 0 | ||
Other (income) expense, net | 4 | 1 | (2) | (80) |
Total expenses | 1,191 | 1,084 | 2,209 | 1,996 |
Income (loss) from continuing operations before income taxes and equity in earnings (losses) of subsidiaries | 680 | 552 | 1,039 | 936 |
(Provision) benefit for taxes on income (loss) of continuing operations | (273) | (223) | (401) | (381) |
Equity in earnings (losses) of subsidiaries, net of tax | 0 | 0 | 0 | 0 |
Net income (loss) from continuing operations | 407 | 329 | 638 | 555 |
Net income (loss) from discontinued operations | 0 | (11) | 0 | (10) |
Net income (loss) | 407 | 318 | 638 | 545 |
Other comprehensive income (loss), net of tax | (8) | (23) | 4 | 29 |
Comprehensive income (loss) | 399 | 295 | 642 | 574 |
The Hertz Corporation | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Total revenues | 2,224 | 2,270 | 4,140 | 4,253 |
Expenses: | ||||
Direct vehicle and operating | 1,255 | 1,267 | 2,387 | 2,425 |
Depreciation of revenue earning vehicles and lease charges, net | 743 | 629 | 1,444 | 1,245 |
Selling, general and administrative | 223 | 234 | 442 | 459 |
Total interest expense, net | 157 | 174 | 287 | 325 |
Intangible asset impairments | 86 | 0 | 86 | 0 |
Other (income) expense, net | 4 | 1 | 31 | (89) |
Total expenses | 2,468 | 2,305 | 4,677 | 4,365 |
Income (loss) from continuing operations before income taxes and equity in earnings (losses) of subsidiaries | (244) | (35) | (537) | (112) |
(Provision) benefit for taxes on income (loss) of continuing operations | 86 | 7 | 157 | 32 |
Equity in earnings (losses) of subsidiaries, net of tax | 0 | 0 | 0 | 0 |
Net income (loss) from continuing operations | (158) | (28) | (380) | (80) |
Net income (loss) from discontinued operations | 0 | (15) | 0 | (11) |
Net income (loss) | (158) | (43) | (380) | (91) |
Other comprehensive income (loss), net of tax | (7) | (45) | 6 | 9 |
Comprehensive income (loss) | $ (165) | $ (88) | $ (374) | $ (82) |
Guarantor and Non-Guarantor C64
Guarantor and Non-Guarantor Condensed Consolidating Financial Information - Hertz (Statement of Cash Flows) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Condensed Financial Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | $ 982 | $ 1,014 |
Cash flows from investing activities: | ||
Revenue earning vehicles expenditures | (6,709) | (6,887) |
Proceeds from disposal of revenue earning vehicles | 3,835 | 4,787 |
Capital asset expenditures, non-vehicle | (103) | (72) |
Proceeds from disposal of property and other equipment | 11 | 39 |
Sales of shares in equity investment | 9 | 188 |
Other | (2) | 0 |
Net cash provided by (used in) investing activities | (2,904) | (1,929) |
Cash flows from financing activities: | ||
Payment of financing costs | (34) | (51) |
Early redemption premium payment | (5) | 0 |
Transfers from discontinued entities | 0 | 2,122 |
Other | (1) | 12 |
Net cash provided by (used in) financing activities | 2,235 | 1,718 |
Effect of foreign currency exchange rate changes on cash and cash equivalents from continuing operations | 12 | 8 |
Net increase (decrease) in cash and cash equivalents during the period from continuing operations | 325 | 811 |
Cash and cash equivalents at beginning of period | 816 | 474 |
Cash and cash equivalents at end of period | 1,141 | 1,285 |
Cash flows provided by (used in) operating activities | 0 | 205 |
Cash flows provided by (used in) investing activities | 0 | (78) |
Cash flows provided by (used in) financing activities | 0 | (96) |
Net increase (decrease) in cash and cash equivalents during the period from discontinued operations | 0 | 31 |
Vehicles | ||
Cash flows from investing activities: | ||
Net change in restricted cash and cash equivalents, vehicle and non vehicle | 55 | 18 |
Cash flows from financing activities: | ||
Proceeds from issuance of debt | 5,028 | 6,079 |
Repayments of debt | (3,665) | (5,078) |
Non-vehicle | ||
Cash flows from investing activities: | ||
Net change in restricted cash and cash equivalents, vehicle and non vehicle | 0 | (2) |
Cash flows from financing activities: | ||
Proceeds from issuance of debt | 2,100 | 1,477 |
Repayments of debt | (354) | (2,843) |
Eliminations | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | (822) | (439) |
Cash flows from investing activities: | ||
Revenue earning vehicles expenditures | 0 | 0 |
Proceeds from disposal of revenue earning vehicles | 0 | 0 |
Capital asset expenditures, non-vehicle | 0 | 0 |
Proceeds from disposal of property and other equipment | 0 | 0 |
Sales of shares in equity investment | 0 | 0 |
Other | 0 | |
Capital contributions to subsidiaries | 1,419 | 514 |
Return of capital from subsidiaries | (1,898) | (1,623) |
Loan to Parent/Guarantor from Non-Guarantor | (431) | 405 |
Net cash provided by (used in) investing activities | (910) | (704) |
Cash flows from financing activities: | ||
Payment of financing costs | 0 | 0 |
Early redemption premium payment | 0 | |
Transfers from discontinued entities | 0 | |
Other | 0 | |
Advances to Hertz Global/Old Hertz Holdings | 0 | |
Capital contributions received from parent | (1,419) | (514) |
Payment of dividends and return of capital | 2,720 | 2,062 |
Loan to Parent/Guarantor from Non-Guarantor | 431 | (405) |
Net cash provided by (used in) financing activities | 1,732 | 1,143 |
Effect of foreign currency exchange rate changes on cash and cash equivalents from continuing operations | 0 | 0 |
Net increase (decrease) in cash and cash equivalents during the period from continuing operations | 0 | 0 |
Cash and cash equivalents at beginning of period | 0 | 0 |
Cash and cash equivalents at end of period | 0 | 0 |
Cash flows provided by (used in) operating activities | 0 | |
Cash flows provided by (used in) investing activities | 0 | |
Cash flows provided by (used in) financing activities | 0 | |
Net increase (decrease) in cash and cash equivalents during the period from discontinued operations | 0 | |
Eliminations | Vehicles | ||
Cash flows from investing activities: | ||
Net change in restricted cash and cash equivalents, vehicle and non vehicle | 0 | 0 |
Cash flows from financing activities: | ||
Proceeds from issuance of debt | 0 | 0 |
Repayments of debt | 0 | 0 |
Eliminations | Non-vehicle | ||
Cash flows from investing activities: | ||
Net change in restricted cash and cash equivalents, vehicle and non vehicle | 0 | 0 |
Cash flows from financing activities: | ||
Proceeds from issuance of debt | 0 | 0 |
Repayments of debt | 0 | 0 |
Parent (The Hertz Corporation) | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | (377) | (1,492) |
Cash flows from investing activities: | ||
Revenue earning vehicles expenditures | (171) | (176) |
Proceeds from disposal of revenue earning vehicles | 91 | 131 |
Capital asset expenditures, non-vehicle | (75) | (41) |
Proceeds from disposal of property and other equipment | 6 | 12 |
Sales of shares in equity investment | 0 | (45) |
Other | 0 | |
Capital contributions to subsidiaries | (1,419) | (514) |
Return of capital from subsidiaries | 1,898 | 1,623 |
Loan to Parent/Guarantor from Non-Guarantor | 0 | 0 |
Net cash provided by (used in) investing activities | 329 | 980 |
Cash flows from financing activities: | ||
Payment of financing costs | (16) | (31) |
Early redemption premium payment | (5) | |
Transfers from discontinued entities | 2,122 | |
Other | 11 | |
Advances to Hertz Global/Old Hertz Holdings | (3) | |
Capital contributions received from parent | 0 | 0 |
Payment of dividends and return of capital | 0 | 0 |
Loan to Parent/Guarantor from Non-Guarantor | (431) | 405 |
Net cash provided by (used in) financing activities | 431 | 1,144 |
Effect of foreign currency exchange rate changes on cash and cash equivalents from continuing operations | 0 | 0 |
Net increase (decrease) in cash and cash equivalents during the period from continuing operations | 383 | 632 |
Cash and cash equivalents at beginning of period | 458 | 179 |
Cash and cash equivalents at end of period | 841 | 811 |
Cash flows provided by (used in) operating activities | 0 | |
Cash flows provided by (used in) investing activities | 0 | |
Cash flows provided by (used in) financing activities | 0 | |
Net increase (decrease) in cash and cash equivalents during the period from discontinued operations | 0 | |
Parent (The Hertz Corporation) | Vehicles | ||
Cash flows from investing activities: | ||
Net change in restricted cash and cash equivalents, vehicle and non vehicle | (1) | (10) |
Cash flows from financing activities: | ||
Proceeds from issuance of debt | 631 | 186 |
Repayments of debt | (657) | (183) |
Parent (The Hertz Corporation) | Non-vehicle | ||
Cash flows from investing activities: | ||
Net change in restricted cash and cash equivalents, vehicle and non vehicle | (834) | 0 |
Cash flows from financing activities: | ||
Proceeds from issuance of debt | 2,100 | 1,477 |
Repayments of debt | (354) | (2,843) |
Guarantor Subsidiaries | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | 15 | 37 |
Cash flows from investing activities: | ||
Revenue earning vehicles expenditures | (5) | (34) |
Proceeds from disposal of revenue earning vehicles | 0 | 0 |
Capital asset expenditures, non-vehicle | (5) | (8) |
Proceeds from disposal of property and other equipment | 0 | 3 |
Sales of shares in equity investment | 0 | 0 |
Other | 0 | |
Capital contributions to subsidiaries | 0 | 0 |
Return of capital from subsidiaries | 0 | 0 |
Loan to Parent/Guarantor from Non-Guarantor | 0 | 0 |
Net cash provided by (used in) investing activities | (11) | (41) |
Cash flows from financing activities: | ||
Payment of financing costs | (4) | (3) |
Early redemption premium payment | 0 | |
Transfers from discontinued entities | 0 | |
Other | 1 | |
Advances to Hertz Global/Old Hertz Holdings | 0 | |
Capital contributions received from parent | 0 | 0 |
Payment of dividends and return of capital | 0 | 0 |
Loan to Parent/Guarantor from Non-Guarantor | 0 | 0 |
Net cash provided by (used in) financing activities | (5) | (2) |
Effect of foreign currency exchange rate changes on cash and cash equivalents from continuing operations | 0 | 0 |
Net increase (decrease) in cash and cash equivalents during the period from continuing operations | (1) | (6) |
Cash and cash equivalents at beginning of period | 12 | 17 |
Cash and cash equivalents at end of period | 11 | 11 |
Cash flows provided by (used in) operating activities | 59 | |
Cash flows provided by (used in) investing activities | (75) | |
Cash flows provided by (used in) financing activities | 44 | |
Net increase (decrease) in cash and cash equivalents during the period from discontinued operations | 28 | |
Guarantor Subsidiaries | Vehicles | ||
Cash flows from investing activities: | ||
Net change in restricted cash and cash equivalents, vehicle and non vehicle | (1) | (2) |
Cash flows from financing activities: | ||
Proceeds from issuance of debt | 0 | 0 |
Repayments of debt | 0 | 0 |
Guarantor Subsidiaries | Non-vehicle | ||
Cash flows from investing activities: | ||
Net change in restricted cash and cash equivalents, vehicle and non vehicle | (1) | 0 |
Cash flows from financing activities: | ||
Proceeds from issuance of debt | 0 | 0 |
Repayments of debt | 0 | 0 |
Non-Guarantor Subsidiaries | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | 2,168 | 2,908 |
Cash flows from investing activities: | ||
Revenue earning vehicles expenditures | (6,533) | (6,677) |
Proceeds from disposal of revenue earning vehicles | 3,744 | 4,656 |
Capital asset expenditures, non-vehicle | (23) | (23) |
Proceeds from disposal of property and other equipment | 5 | 24 |
Sales of shares in equity investment | 9 | 233 |
Other | (2) | |
Capital contributions to subsidiaries | 0 | 0 |
Return of capital from subsidiaries | 0 | 0 |
Loan to Parent/Guarantor from Non-Guarantor | 431 | (405) |
Net cash provided by (used in) investing activities | (2,312) | (2,164) |
Cash flows from financing activities: | ||
Payment of financing costs | (14) | (17) |
Early redemption premium payment | 0 | |
Transfers from discontinued entities | 0 | |
Other | 0 | |
Advances to Hertz Global/Old Hertz Holdings | 0 | |
Capital contributions received from parent | 1,419 | 514 |
Payment of dividends and return of capital | (2,720) | (2,062) |
Loan to Parent/Guarantor from Non-Guarantor | 0 | 0 |
Net cash provided by (used in) financing activities | 75 | (567) |
Effect of foreign currency exchange rate changes on cash and cash equivalents from continuing operations | 12 | 8 |
Net increase (decrease) in cash and cash equivalents during the period from continuing operations | (57) | 185 |
Cash and cash equivalents at beginning of period | 346 | 278 |
Cash and cash equivalents at end of period | 289 | 463 |
Cash flows provided by (used in) operating activities | 148 | |
Cash flows provided by (used in) investing activities | (2) | |
Cash flows provided by (used in) financing activities | (138) | |
Net increase (decrease) in cash and cash equivalents during the period from discontinued operations | 8 | |
Non-Guarantor Subsidiaries | Vehicles | ||
Cash flows from investing activities: | ||
Net change in restricted cash and cash equivalents, vehicle and non vehicle | 57 | 30 |
Cash flows from financing activities: | ||
Proceeds from issuance of debt | 4,397 | 5,893 |
Repayments of debt | (3,008) | (4,895) |
Non-Guarantor Subsidiaries | Non-vehicle | ||
Cash flows from investing activities: | ||
Net change in restricted cash and cash equivalents, vehicle and non vehicle | 1 | (2) |
Cash flows from financing activities: | ||
Proceeds from issuance of debt | 0 | 0 |
Repayments of debt | 0 | 0 |
The Hertz Corporation | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | 984 | 1,014 |
Cash flows from investing activities: | ||
Revenue earning vehicles expenditures | (6,709) | (6,887) |
Proceeds from disposal of revenue earning vehicles | 3,835 | 4,787 |
Capital asset expenditures, non-vehicle | (103) | (72) |
Proceeds from disposal of property and other equipment | 11 | 39 |
Sales of shares in equity investment | 9 | 188 |
Other | (2) | 0 |
Capital contributions to subsidiaries | 0 | 0 |
Return of capital from subsidiaries | 0 | 0 |
Loan to Parent/Guarantor from Non-Guarantor | 0 | 0 |
Net cash provided by (used in) investing activities | (2,904) | (1,929) |
Cash flows from financing activities: | ||
Payment of financing costs | (34) | (51) |
Early redemption premium payment | (5) | 0 |
Transfers from discontinued entities | 0 | 2,122 |
Other | 0 | 12 |
Advances to Hertz Global/Old Hertz Holdings | (3) | 0 |
Capital contributions received from parent | 0 | 0 |
Payment of dividends and return of capital | 0 | 0 |
Loan to Parent/Guarantor from Non-Guarantor | 0 | 0 |
Net cash provided by (used in) financing activities | 2,233 | 1,718 |
Effect of foreign currency exchange rate changes on cash and cash equivalents from continuing operations | 12 | 8 |
Net increase (decrease) in cash and cash equivalents during the period from continuing operations | 325 | 811 |
Cash and cash equivalents at beginning of period | 816 | 474 |
Cash and cash equivalents at end of period | 1,141 | 1,285 |
Cash flows provided by (used in) operating activities | 0 | 207 |
Cash flows provided by (used in) investing activities | 0 | (77) |
Cash flows provided by (used in) financing activities | 0 | (94) |
Net increase (decrease) in cash and cash equivalents during the period from discontinued operations | 0 | 36 |
The Hertz Corporation | Vehicles | ||
Cash flows from investing activities: | ||
Net change in restricted cash and cash equivalents, vehicle and non vehicle | 55 | 18 |
Cash flows from financing activities: | ||
Proceeds from issuance of debt | 5,028 | 6,079 |
Repayments of debt | (3,665) | (5,078) |
The Hertz Corporation | Non-vehicle | ||
Cash flows from investing activities: | ||
Net change in restricted cash and cash equivalents, vehicle and non vehicle | (834) | (2) |
Cash flows from financing activities: | ||
Proceeds from issuance of debt | 2,100 | 1,477 |
Repayments of debt | $ (354) | $ (2,843) |