Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | Apr. 30, 2018 | |
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 | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 84,065,852 | |
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 | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 100 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash and cash equivalents | $ 1,046 | $ 1,072 |
Restricted cash and cash equivalents: | 894 | 432 |
Total cash, cash equivalents, restricted cash and restricted cash equivalents | 1,940 | 1,504 |
Receivables: | 1,332 | 1,365 |
Prepaid expenses and other assets | 1,110 | 687 |
Revenue earning vehicles: | ||
Vehicles | 16,102 | 14,574 |
Less accumulated depreciation | (3,278) | (3,238) |
Total revenue earning vehicles, net | 12,824 | 11,336 |
Property and equipment: | ||
Land, buildings and leasehold improvements | 1,225 | 1,233 |
Service equipment and other | 786 | 763 |
Less accumulated depreciation | (1,184) | (1,156) |
Total property and equipment, net | 827 | 840 |
Other intangible assets, net | 3,204 | 3,242 |
Goodwill | 1,084 | 1,084 |
Total assets(a) | 22,321 | 20,058 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Accounts payable: | 1,458 | 946 |
Accrued liabilities | 1,172 | 920 |
Accrued taxes, net | 163 | 160 |
Debt: | 16,811 | 14,865 |
Public liability and property damage | 438 | 427 |
Deferred income taxes, net | 1,141 | 1,220 |
Total liabilities | 21,183 | 18,538 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred Stock, $0.01 par value, no shares issued and outstanding | 0 | 0 |
Common Stock | 1 | 1 |
Additional paid-in capital | 2,250 | 2,243 |
Accumulated deficit | (897) | (506) |
Accumulated other comprehensive income (loss) | (121) | (118) |
Treasury Stock, at cost, 2 shares and 2 shares | (100) | (100) |
Total equity | 1,133 | 1,520 |
Non-controlling interest | 5 | 0 |
Total stockholders' equity | 1,138 | 1,520 |
Total liabilities and stockholders' equity | 22,321 | 20,058 |
Vehicles | ||
ASSETS | ||
Restricted cash and cash equivalents: | 862 | 386 |
Receivables: | 391 | 531 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Accounts payable: | 736 | 294 |
Debt: | 12,379 | 10,431 |
Non-vehicle | ||
ASSETS | ||
Restricted cash and cash equivalents: | 32 | 46 |
Receivables: | 941 | 834 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Accounts payable: | 722 | 652 |
Debt: | 4,432 | 4,434 |
The Hertz Corporation | ||
ASSETS | ||
Cash and cash equivalents | 1,046 | 1,072 |
Restricted cash and cash equivalents: | 894 | 432 |
Total cash, cash equivalents, restricted cash and restricted cash equivalents | 1,940 | 1,504 |
Receivables: | 1,332 | 1,365 |
Prepaid expenses and other assets | 1,110 | 687 |
Revenue earning vehicles: | ||
Vehicles | 16,102 | 14,574 |
Less accumulated depreciation | (3,278) | (3,238) |
Total revenue earning vehicles, net | 12,824 | 11,336 |
Property and equipment: | ||
Land, buildings and leasehold improvements | 1,225 | 1,233 |
Service equipment and other | 786 | 763 |
Less accumulated depreciation | (1,184) | (1,156) |
Total property and equipment, net | 827 | 840 |
Other intangible assets, net | 3,204 | 3,242 |
Goodwill | 1,084 | 1,084 |
Total assets(a) | 22,321 | 20,058 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Accounts payable: | 1,458 | 946 |
Accrued liabilities | 1,172 | 920 |
Accrued taxes, net | 163 | 160 |
Debt: | 16,811 | 14,865 |
Public liability and property damage | 438 | 427 |
Deferred income taxes, net | 1,141 | 1,220 |
Total liabilities | 21,183 | 18,538 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Common Stock | 0 | 0 |
Additional paid-in capital | 3,176 | 3,166 |
Due from affiliate | (46) | (42) |
Accumulated deficit | (1,876) | (1,486) |
Accumulated other comprehensive income (loss) | (121) | (118) |
Total equity | 1,133 | 1,520 |
Non-controlling interest | 5 | 0 |
Total stockholders' equity | 1,138 | 1,520 |
Total liabilities and stockholders' equity | 22,321 | 20,058 |
The Hertz Corporation | Vehicles | ||
ASSETS | ||
Restricted cash and cash equivalents: | 862 | 386 |
Receivables: | 391 | 531 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Accounts payable: | 736 | 294 |
Debt: | 12,379 | 10,431 |
The Hertz Corporation | Non-vehicle | ||
ASSETS | ||
Restricted cash and cash equivalents: | 32 | 46 |
Receivables: | 941 | 834 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Accounts payable: | 722 | 652 |
Debt: | $ 4,432 | $ 4,434 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
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 | 86,000,000 |
Common Stock, shares outstanding | 84,000,000 | 84,000,000 |
Treasury Stock, shares repurchased | 2,000,000 | 2,000,000 |
VIE, total assets | $ 718 | $ 524 |
VIE, total liabilities | 713 | 524 |
Non-vehicle | ||
Receivables, allowance for doubtful accounts (in dollars) | 31 | 33 |
The Hertz Corporation | ||
Receivables, allowance for doubtful accounts (in dollars) | $ 31 | $ 33 |
Common Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
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 | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenues: | ||
Worldwide vehicle rental | $ 1,894 | $ 1,764 |
All other operations | 169 | 152 |
Total revenues | 2,063 | 1,916 |
Expenses: | ||
Direct vehicle and operating | 1,236 | 1,132 |
Depreciation of revenue earning vehicles and lease charges, net | 661 | 701 |
Selling, general and administrative | 234 | 220 |
Total interest expense, net | 166 | 130 |
Other (income) expense, net | (3) | 27 |
Total expenses | 2,294 | 2,210 |
Income (loss) before income taxes | (231) | (294) |
Income tax (provision) benefit | 29 | 71 |
Net income (loss) | $ (202) | $ (223) |
Weighted average shares outstanding: | ||
Basic (in shares) | 83 | 83 |
Diluted (in shares) | 83 | 83 |
Earnings (loss) per share - basic and diluted: | ||
Basic earnings (loss) per share (in dollars per share) | $ (2.43) | $ (2.69) |
Diluted earnings (loss) per share (in dollars per share) | $ (2.43) | $ (2.69) |
Vehicles | ||
Expenses: | ||
Total interest expense, net | $ 94 | $ 71 |
Non-vehicle | ||
Expenses: | ||
Total interest expense, net | 72 | 59 |
The Hertz Corporation | ||
Revenues: | ||
Worldwide vehicle rental | 1,894 | 1,764 |
All other operations | 169 | 152 |
Total revenues | 2,063 | 1,916 |
Expenses: | ||
Direct vehicle and operating | 1,236 | 1,132 |
Depreciation of revenue earning vehicles and lease charges, net | 661 | 701 |
Selling, general and administrative | 234 | 220 |
Total interest expense, net | 165 | 129 |
Other (income) expense, net | (3) | 27 |
Total expenses | 2,293 | 2,209 |
Income (loss) before income taxes | (230) | (293) |
Income tax (provision) benefit | 29 | 71 |
Net income (loss) | (201) | (222) |
The Hertz Corporation | Vehicles | ||
Expenses: | ||
Total interest expense, net | 94 | 71 |
The Hertz Corporation | Non-vehicle | ||
Expenses: | ||
Total interest expense, net | $ 71 | $ 58 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Net income (loss) | $ (202) | $ (223) |
Other comprehensive income (loss): | ||
Foreign currency translation adjustments | 0 | 16 |
Reclassification of realized gain on securities to other (income) expense | 0 | (3) |
Net gain (loss) on defined benefit pension plans | (3) | (1) |
Reclassification from other comprehensive income (loss) to selling, general and administrative expense for amortization of actuarial (gains) losses on defined benefit pension plans | 0 | 1 |
Total other comprehensive income (loss) before income taxes | (3) | 13 |
Income tax (provision) benefit related to net gains and losses on defined benefit pension plans | 0 | 0 |
Income tax (provision) benefit related to reclassified amounts of net periodic costs on defined benefit pension plans | 0 | 0 |
Total other comprehensive income (loss) | (3) | 13 |
Total comprehensive income (loss) | (205) | (210) |
The Hertz Corporation | ||
Net income (loss) | (201) | (222) |
Other comprehensive income (loss): | ||
Foreign currency translation adjustments | 0 | 16 |
Reclassification of realized gain on securities to other (income) expense | 0 | (3) |
Net gain (loss) on defined benefit pension plans | (3) | (1) |
Reclassification from other comprehensive income (loss) to selling, general and administrative expense for amortization of actuarial (gains) losses on defined benefit pension plans | 0 | 1 |
Total other comprehensive income (loss) before income taxes | (3) | 13 |
Income tax (provision) benefit related to net gains and losses on defined benefit pension plans | 0 | 0 |
Income tax (provision) benefit related to reclassified amounts of net periodic costs on defined benefit pension plans | 0 | 0 |
Total other comprehensive income (loss) | (3) | 13 |
Total comprehensive income (loss) | $ (204) | $ (209) |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (202) | $ (223) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation of revenue earning vehicles, net | 641 | 684 |
Depreciation and amortization, non-vehicle | 58 | 58 |
Amortization of deferred financing costs and debt discount (premium) | 13 | 10 |
Stock-based compensation charges | 3 | 7 |
Provision for receivables allowance | 9 | 8 |
Deferred income taxes, net | (36) | (71) |
Impairment charges and asset write-downs | 0 | 30 |
Other | 4 | (6) |
Changes in assets and liabilities: | ||
Non-vehicle receivables | (107) | 23 |
Prepaid expenses and other assets | (64) | (35) |
Non-vehicle accounts payable | 73 | 29 |
Accrued liabilities | 4 | (30) |
Accrued taxes, net | 2 | 8 |
Public liability and property damage | 3 | (7) |
Net cash provided by (used in) operating activities | 401 | 485 |
Cash flows from investing activities: | ||
Revenue earning vehicles expenditures | (3,565) | (2,837) |
Proceeds from disposal of revenue earning vehicles | 1,782 | 1,935 |
Capital asset expenditures, non-vehicle | (44) | (41) |
Proceeds from disposal of property and other equipment | 4 | 7 |
Other | (27) | 9 |
Net cash provided by (used in) investing activities | (1,850) | (927) |
Cash flows from financing activities: | ||
Payment of financing costs | (19) | (12) |
Other | 2 | (1) |
Net cash provided by (used in) financing activities | 1,877 | 391 |
Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents | 8 | 8 |
Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents during the period | 436 | (43) |
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period | 1,504 | 1,094 |
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period | 1,940 | 1,051 |
Cash paid during the period for: | ||
Income taxes, net of refunds | 6 | 2 |
Supplemental disclosures of non-cash flow information: | ||
Purchases of revenue earning vehicles included in accounts payable and accrued liabilities, net of incentives | 613 | 437 |
Sales of revenue earning vehicles included in receivables | 268 | 215 |
Purchases of non-vehicle capital assets included in accounts payable | 42 | 30 |
Revenue earning vehicles and non-vehicle capital assets acquired through capital lease | 9 | 2 |
Vehicles | ||
Cash flows from financing activities: | ||
Proceeds from issuance of debt | 5,181 | 2,098 |
Repayments of debt | (3,283) | (1,692) |
Cash paid during the period for: | ||
Interest, net of amounts capitalized: | 82 | 67 |
Non-vehicle | ||
Cash flows from financing activities: | ||
Proceeds from issuance of debt | 127 | 100 |
Repayments of debt | (131) | (102) |
Cash paid during the period for: | ||
Interest, net of amounts capitalized: | 28 | 30 |
The Hertz Corporation | ||
Cash flows from operating activities: | ||
Net income (loss) | (201) | (222) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation of revenue earning vehicles, net | 641 | 684 |
Depreciation and amortization, non-vehicle | 58 | 58 |
Amortization of deferred financing costs and debt discount (premium) | 13 | 10 |
Stock-based compensation charges | 3 | 7 |
Provision for receivables allowance | 9 | 8 |
Deferred income taxes, net | (36) | (71) |
Impairment charges and asset write-downs | 0 | 30 |
Other | 4 | (6) |
Changes in assets and liabilities: | ||
Non-vehicle receivables | (107) | 23 |
Prepaid expenses and other assets | (64) | (35) |
Non-vehicle accounts payable | 73 | 29 |
Accrued liabilities | 4 | (30) |
Accrued taxes, net | 2 | 8 |
Public liability and property damage | 3 | (7) |
Net cash provided by (used in) operating activities | 402 | 486 |
Cash flows from investing activities: | ||
Revenue earning vehicles expenditures | (3,565) | (2,837) |
Proceeds from disposal of revenue earning vehicles | 1,782 | 1,935 |
Capital asset expenditures, non-vehicle | (44) | (41) |
Proceeds from disposal of property and other equipment | 4 | 7 |
Other | (27) | 9 |
Net cash provided by (used in) investing activities | (1,850) | (927) |
Cash flows from financing activities: | ||
Payment of financing costs | (19) | (12) |
Advances to Hertz Holdings | (4) | (2) |
Other | 5 | 0 |
Net cash provided by (used in) financing activities | 1,876 | 390 |
Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents | 8 | 8 |
Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents during the period | 436 | (43) |
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period | 1,504 | 1,094 |
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period | 1,940 | 1,051 |
Cash paid during the period for: | ||
Income taxes, net of refunds | 6 | 2 |
Supplemental disclosures of non-cash flow information: | ||
Purchases of revenue earning vehicles included in accounts payable and accrued liabilities, net of incentives | 613 | 437 |
Sales of revenue earning vehicles included in receivables | 268 | 215 |
Purchases of non-vehicle capital assets included in accounts payable | 42 | 30 |
Revenue earning vehicles and non-vehicle capital assets acquired through capital lease | 9 | 2 |
The Hertz Corporation | Vehicles | ||
Cash flows from financing activities: | ||
Proceeds from issuance of debt | 5,181 | 2,098 |
Repayments of debt | (3,283) | (1,692) |
Cash paid during the period for: | ||
Interest, net of amounts capitalized: | 82 | 67 |
The Hertz Corporation | Non-vehicle | ||
Cash flows from financing activities: | ||
Proceeds from issuance of debt | 127 | 100 |
Repayments of debt | (131) | (102) |
Cash paid during the period for: | ||
Interest, net of amounts capitalized: | $ 28 | $ 30 |
Background
Background | 3 Months Ended |
Mar. 31, 2018 | |
Background Disclosure [Abstract] | |
Background | Background Hertz Global Holdings, Inc. ("Hertz Global" when including its subsidiaries and variable interest entities and "Hertz Holdings" excluding its subsidiaries and variable interest entities) 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 United States ("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. |
Basis of Presentation and Recen
Basis of Presentation and Recently Issued Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2018 | |
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's unaudited condensed consolidated financial statements have been prepared in accordance 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, 2017 unaudited 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 Quarterly Report on Form 10-Q should be read in conjunction with information included in the Company's Form 10‑K for the year ended December 31, 2017 (the "2017 Form 10-K"), as filed with the Securities and Exchange Commission ("SEC") on February 27, 2018. Certain prior period amounts have been reclassified to conform with current period presentation. As disclosed below in "Recently Issued Accounting Pronouncements," the Company adopted the financial statement disclosure guidance "Restricted Cash" on January 1, 2018. 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. The Company is the primary beneficiary of certain variable interest entities, therefore, the assets, liabilities, results of operations and cash flows of the variable interest entities are included in the Company's unaudited condensed 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. Correction of Errors The Company identified classification errors within the operating and investing sections of its unaudited condensed consolidated statement of cash flows for the three months ended March 31, 2017. One of the errors relates to its previous operations in Brazil and was previously disclosed in the Company's 2017 Form 10-K. The second error relates to $13 million of intangible software assets for which no payment was made as of March 31, 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 unaudited condensed consolidated statement of cash flows for the three months ended March 31, 2017, accordingly. Correction of the errors decreased cash provided by operating activities for changes in non-vehicle accounts payable by $13 million and decreased cash used in investing activities by $13 million , comprised of a decrease in revenue earning vehicles expenditures of $25 million , a decrease in proceeds from disposals of revenue earning vehicles of $25 million and a decrease in capital asset expenditures, non-vehicle of $13 million . Also, there was a $13 million increase in the non-cash supplemental disclosure for purchases of non-vehicle capital assets included in accounts payable. These revisions had no impact to cash flows from financing activities. Additionally, these revisions had no impact on the Company's unaudited condensed consolidated balance sheet as of December 31, 2017 or its unaudited condensed consolidated statement of operations for the three months ended March 31, 2017. Recently Issued Accounting Pronouncements Adopted Revenue from Contracts with Customers In May 2014, the Financial Accounting Standards Board (the "FASB") issued guidance that replaced most existing revenue recognition guidance in U.S. GAAP. The FASB also issued several amendments and updates to the new revenue standard (collectively, “Topic 606”). Topic 606 applies to all contracts with customers except for leases, insurance contracts, financial instruments, certain nonmonetary exchanges and certain guarantees. The core principle of Topic 606 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, as well as when an entity should recognize revenue gross as a principal or net as an agent and how an entity should identify performance obligations. Topic 606 requires disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments. The Company adopted Topic 606 on the effective date, January 1, 2018, using a modified retrospective approach applied to all contracts. Prior periods were not retrospectively adjusted. The impact to the Company’s financial position, results of operations and cash flows is primarily for revenue associated with the redemption of points earned by customers under the Company’s loyalty programs (“loyalty points”). For transactions that generate loyalty points to the customer, a portion of revenue is deferred until the loyalty points are redeemed by the customer. The amount of revenue deferred is equivalent to the retail value of each loyalty point less an estimated amount representing loyalty points that are not expected to be redeemed. The cumulative effect of applying the new guidance to all contracts with customers that were not completed as of January 1, 2018 was recorded as an adjustment to accumulated deficit, net of tax, as of the adoption date as follows: Hertz Global (In millions) Deferred income taxes, net Accrued liabilities Total liabilities Accumulated deficit Total equity Total liabilities and equity As of December 31, 2017 $ 1,220 $ 920 $ 18,538 $ (506 ) $ 1,520 $ 20,058 Effect of Adopting ASC 606 (51 ) 240 189 (189 ) (189 ) — As of January 1, 2018 $ 1,169 $ 1,160 $ 18,727 $ (695 ) $ 1,331 $ 20,058 Hertz (In millions) Deferred income taxes, net Accrued liabilities Total liabilities Accumulated deficit Total equity Total liabilities and equity As of December 31, 2017 $ 1,220 $ 920 $ 18,538 $ (1,486 ) $ 1,520 $ 20,058 Effect of Adopting ASC 606 (51 ) 240 189 (189 ) (189 ) — As of January 1, 2018 $ 1,169 $ 1,160 $ 18,727 $ (1,675 ) $ 1,331 $ 20,058 As disclosed above, the Company adopted Topic 606 on a modified retrospective basis, therefore, historical financial information has not been restated for comparative purposes and continues to be reported under the accounting standards in effect for those periods (“legacy guidance”). The following table presents the amounts for line items in the Company’s unaudited condensed consolidated balance sheet, statement of operations and cash flows impacted by the adoption of Topic 606 as compared to the amounts that would have been recognized in accordance with legacy guidance. The impact to the Company's unaudited condensed consolidated statement of comprehensive income (loss) is comprised solely of the impact to net income (loss) as shown in the table below: Hertz Global As of or for the Three Months Ended March 31, 2018 (In millions, except per share data) As Reported Effect of Adoption Increase (Decrease) Balances Without Adoption Unaudited Condensed Consolidated Balance Sheet: Accrued liabilities $ 1,172 $ 238 $ 934 Deferred income taxes, net 1,141 (51 ) 1,192 Total liabilities 21,183 187 20,996 Accumulated deficit (897 ) (187 ) (710 ) Total stockholders' equity 1,138 (187 ) 1,325 Unaudited Condensed Consolidated Statement of Operations: Worldwide vehicle rental revenues 1,894 3 1,891 Selling, general and administrative expense 234 1 233 Income (loss) before income taxes (231 ) 2 (233 ) Income tax (provision) benefit 29 — 29 Net income (loss) (202 ) 2 (204 ) Basic earnings (loss) per share (2.43 ) 0.03 (2.46 ) Diluted earnings (loss) per share (2.43 ) 0.03 (2.46 ) Unaudited Condensed Consolidated Statement of Cash Flow: Cash flows from operating activities: Net income (loss) (202 ) 2 (204 ) Deferred income taxes, net (36 ) — (36 ) Accrued liabilities 4 (2 ) 6 Hertz As of or for the Three Months Ended March 31, 2018 (In millions, except per share data) As Reported Effect of Adoption Increase (Decrease) Balances Without Adoption Unaudited Condensed Consolidated Balance Sheet: Accrued liabilities $ 1,172 $ 238 $ 934 Deferred income taxes, net 1,141 (51 ) 1,192 Total liabilities 21,183 187 20,996 Accumulated deficit (1,876 ) (187 ) (1,689 ) Total stockholders' equity 1,138 (187 ) 1,325 Unaudited Condensed Consolidated Statement of Operations: Worldwide vehicle rental revenues 1,894 3 1,891 Selling, general and administrative expense 234 1 233 Income (loss) before income taxes (230 ) 2 (232 ) Income tax (provision) benefit 29 — 29 Net income (loss) (201 ) 2 (203 ) Unaudited Condensed Consolidated Statement of Cash Flow: Cash flows from operating activities: Net income (loss) (201 ) 2 (203 ) Deferred income taxes, net (36 ) — (36 ) Accrued liabilities 4 (2 ) 6 See Note 6 , " Revenue ," for information regarding the Company’s accounting policies for revenue recognition, including the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers, as well as other required disclosures under Topic 606. 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 show the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. Additionally, entities will no longer present transfers between cash and cash equivalents and restricted cash and restricted cash equivalents in the statement of cash flows. The Company adopted this guidance retrospectively in accordance with the effective date on January 1, 2018. Adoption of this guidance had no impact on the Company's financial position or results of operations. The impact to the unaudited condensed consolidated statement of cash flows of adopting this guidance was as follows: Hertz Global Three months ended March 31, 2017 (In millions) As Previously Reported Adjustments As Adjusted Net change in restricted cash and cash equivalents, vehicle $ 14 $ (14 ) $ — Net cash provided by (used in) investing activities (a) (913 ) (14 ) (927 ) Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash 6 2 8 Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period 816 278 1,094 Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period 785 266 1,051 Hertz Three months ended March 31, 2017 (In millions) As Previously Reported Adjustments As Adjusted Net change in restricted cash and cash equivalents, vehicle $ 14 $ (14 ) $ — Net cash provided by (used in) investing activities (a) (913 ) (14 ) (927 ) Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash 6 2 8 Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period 816 278 1,094 Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period 785 266 1,051 (a) Amount previously reported includes the $13 million revision to correct for an error as disclosed above in "Correction of Errors." Not Yet Adopted Leases In February 2016, the FASB issued guidance that replaces the existing lease guidance in U.S. GAAP. The new guidance (Topic "842") 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. Topic 842 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. Topic 842 is effective for annual periods beginning after December 15, 2018 and interim periods within those annual periods with early adoption permitted. The Company intends to adopt this guidance, in accordance with the effective date, on January 1, 2019. 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. The Company is evaluating the Proposed Accounting Standards Update, Leases (Topic 842) Targeted Improvements that were tentatively affirmed by the FASB at its March 2018 meetings. The update provides a transition method that would allow the Company to only apply the new lease standard in the year of adoption. Additionally, it provides a practical expedient for lessors to combine non-lease components with the related lease components if certain conditions are met. This could allow the Company to account for all revenue earned from the operations of rental vehicles and from other forms of rental related activities under the new lease guidance. Lessee Adoption of Topic 842 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 Topic 842 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 from 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. The Company is in the process of evaluating the breakdown of its vehicle rental revenues into lease and non-lease components. There is no impact to the nature, timing or recognition of rental lease revenue upon adoption of this guidance. Reporting Comprehensive Income In February 2018, the FASB issued guidance that allows a reclassification from accumulated other comprehensive income to retained earnings for the stranded tax effects resulting from the U.S. Tax Cuts and Jobs Act ("TCJA"). The guidance is effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods. The guidance should be applied either in the period of adoption or retrospectively to each period in which the effect of the change in the U.S. federal corporate income tax rate in the TCJA is recognized. Early adoption is permitted, including adoption in any interim period. Adoption of this guidance will result in a reclassification of certain amounts from accumulated other comprehensive income to retained earnings as of the date adopted. |
Acquisitions and Divestitures
Acquisitions and Divestitures | 3 Months Ended |
Mar. 31, 2018 | |
Business Combinations and Divestitures [Abstract] | |
Acquisitions and Divestitures | Acquisitions and Divestitures Divestitures Equity Investment The Company had an investment that was accounted for under the equity method. 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, net in the accompanying unaudited condensed consolidated statement of operations for the three months ended March 31, 2017. In September 2017, the investee was dissolved and the Company no longer has an ownership interest in the entity. |
Revenue Earning Vehicles
Revenue Earning Vehicles | 3 Months Ended |
Mar. 31, 2018 | |
Revenue Earning Vehicles [Abstract] | |
Revenue Earning Vehicles | Revenue Earning Vehicles The components of revenue earning vehicles, net are as follows: (In millions) March 31, 2018 December 31, 2017 Revenue earning vehicles $ 15,680 $ 14,209 Less: Accumulated depreciation (3,147 ) (3,123 ) 12,533 11,086 Revenue earning vehicles held for sale, net 291 250 Revenue earning vehicles, net $ 12,824 $ 11,336 Depreciation of revenue earning vehicles and lease charges, net includes the following: Three Months Ended (In millions) 2018 2017 Depreciation of revenue earning vehicles $ 594 $ 605 (Gain) loss on disposal of revenue earning vehicles (a) 47 79 Rents paid for vehicles leased 20 17 Depreciation of revenue earning vehicles and lease charges, net $ 661 $ 701 (a) (Gain) loss on disposal of revenue earning vehicles by segment is as follows: Three Months Ended (In millions) 2018 2017 U.S. Rental Car (i) $ 45 $ 78 International Rental Car 2 1 Total $ 47 $ 79 (i) Includes costs associated with the Company's U.S. vehicle sales operations of $36 million and $30 million for the three months ended March 31, 2018 and 2017 , 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 (In millions) 2018 2017 U.S. Rental Car $ 9 $ 26 International Rental Car 2 — Total $ 11 $ 26 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2018 | |
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 Fixed or Maturity March 31, December 31, Non-Vehicle Debt Senior Term Loan 4.63% Floating 6/2023 $ 684 $ 688 Senior RCF N/A Floating 6/2021 — — Senior Notes (1) 6.13% Fixed 10/2020-10/2024 2,500 2,500 Senior Second Priority Secured Notes 7.63% Fixed 6/2022 1,250 1,250 Promissory Notes 7.00% Fixed 1/2028 27 27 Other Non-Vehicle Debt 1.92% Fixed Various 11 11 Unamortized Debt Issuance Costs and Net (Discount) Premium (40 ) (42 ) Total Non-Vehicle Debt 4,432 4,434 Vehicle Debt HVF U.S. Vehicle Medium Term Notes HVF Series 2010-1 (2) N/A N/A N/A — 39 HVF Series 2013-1 (2) 1.91% Fixed 8/2018 521 625 521 664 HVF II U.S. ABS Program HVF II U.S. Vehicle Variable Funding Notes HVF II Series 2013-A (2) 3.20% Floating 3/2020 2,590 1,970 HVF II Series 2013-B (2) 3.11% Floating 3/2020 68 123 2,658 2,093 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) 2.45% Fixed 9/2018 265 265 HVF II Series 2015-3 (2) 3.10% Fixed 9/2020 371 371 HVF II Series 2016-1 (2) 2.89% Fixed 3/2019 466 466 HVF II Series 2016-2 (2) 3.41% Fixed 3/2021 595 595 HVF II Series 2016-3 (2) 2.72% Fixed 7/2019 424 424 HVF II Series 2016-4 (2) 3.09% Fixed 7/2021 424 424 HVF II Series 2017-1 (2) 3.38% Fixed 10/2020 450 450 HVF II Series 2017-2 (2) 3.57% Fixed 10/2022 350 350 HVF II Series 2018-1 (2) 3.41% Fixed 2/2023 1,000 — 5,125 4,125 Donlen ABS Program HFLF Variable Funding Notes HFLF Series 2013-2 (2) 2.59% Floating 3/2020 474 380 474 380 Facility Weighted Average Interest Rate Fixed or Maturity March 31, December 31, HFLF Medium Term Notes HFLF Series 2015-1 (4) 2.57% Floating 4/2018-5/2019 116 145 HFLF Series 2016-1 (4) 2.87% Both 4/2018-2/2020 280 318 HFLF Series 2017-1 (4) 2.46% Both 6/2018-5/2020 500 500 896 963 Vehicle Debt - Other U.S. Vehicle RCF 4.32% Floating 6/2021 133 186 European Revolving Credit Facility 2.95% Floating 3/2020 123 184 European Vehicle Notes (3) 4.82% Fixed 1/2019–3/2023 1,416 773 European Securitization (2) 1.70% Floating 3/2020 366 367 Canadian Securitization (2) 2.98% Floating 3/2020 209 237 Australian Securitization (2) 3.45% Floating 3/2020 146 155 New Zealand RCF 4.60% Floating 3/2020 43 42 U.K. Financing Facility 2.86% Floating 2/2021 268 251 Other Vehicle Debt 3.92% Floating 4/2018-7/2022 54 51 2,758 2,246 Unamortized Debt Issuance Costs and Net (Discount) Premium (53 ) (40 ) Total Vehicle Debt 12,379 10,431 Total Debt $ 16,811 $ 14,865 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 March 31, 2018 December 31, 2017 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 $ 2,500 $ 2,500 (2) Maturity reference is to the earlier "expected final maturity date" as opposed to the subsequent "legal final maturity date." The expected final maturity date is the date by which Hertz and investors in the relevant indebtedness expect the outstanding principal of the relevant indebtedness to be repaid in full. The legal final maturity date is the date on which the outstanding principal of the relevant indebtedness is legally due and payable in full. (3) 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 1.23 to 1 and 1.19 to 1 as of March 31, 2018 and December 31, 2017 , 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 March 31, 2018 December 31, 2017 4.375% Senior Notes due January 2019 $ 523 $ 505 4.125% Senior Notes due October 2021 277 268 5.50% Senior Notes due March 2023 616 — $ 1,416 $ 773 (4) 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 April 2018. 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. As of March 31, 2018 , approximately $2.6 billion of vehicle debt and $23 million of non-vehicle debt was due to mature between April 1, 2018 and March 31, 2019. The Company has reviewed its debt facilities and determined that it is probable that the Company will be able, and has the intent, to refinance these facilities at such times as the Company determines appropriate prior to their respective maturities. Vehicle Debt HVF II U.S. Vehicle Variable Funding Notes HVF II Series 2013 Notes : In April 2018, HVF II increased the maximum commitments under the HVF II Series 2013-A Notes and HVF II 2013-B Notes (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 Notes was approximately $3.7 billion . HVF II Series 2017-A Notes : In March 2018, HVF II terminated all $500 million of commitments under the HVF II Series 2017-A Notes. HVF II U.S. Vehicle Medium Term Notes HVF II Series 2018-1 Notes : In January 2018, HVF II issued the Series 2018-1 Rental Car Asset Backed Notes, Class A, Class B, Class C and Class D ("the HVF II Series 2018-1 Notes") in an aggregate principal amount of approximately $1.1 billion . Hertz purchased the Class D Notes of such series and as a result, approximately $58 million of the aggregate principal amount is eliminated in consolidation. There is subordination within the HVF II Series 2018-1 Notes based on class. HFLF Medium Term Notes HFLF Series 2018-1 Notes : In May 2018, HFLF issued the Series 2018-1 Asset-Backed Notes, Class A, Class B, Class C, Class D, and Class E (collectively, the “HFLF Series 2018-1 Notes”) in an aggregate principal amount of $550 million . The HFLF Series 2018-1 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 net proceeds of this issuance were used to reduce amounts outstanding under the HFLF Series 2013-2 Notes. Vehicle Debt - Other European Vehicle Notes In March 2018, HHN BV issued 5.50% Senior Notes due March 2023 in an aggregate original principal amount of €500 million (the "2023 Notes") and issued a notice of conditional full redemption for all of its outstanding 4.375 % Senior Notes due January 2019 (the "2019 Notes"). As of March 31, 2018 , €425 million , or $523 million , of the proceeds from the 2023 Notes were included in restricted cash in the accompanying unaudited condensed consolidated balance sheet in connection with the redemption of the 2019 Notes in April 2018. European Revolving Credit Facility In March 2018, HHN BV amended its credit agreement ("European Revolving Credit Facility") to provide for aggregate maximum borrowing capacity (subject to borrowing base availability) of up to €438 million during the peak rental season, for a seasonal commitment period through October 2018 . Following the expiration of the seasonal commitment period, aggregate maximum borrowings available under the European Revolving Credit Facility will revert to up to €235 million (subject to borrowing base availability). 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, asset-based revolving credit facilities and a standalone $400 million letter of credit facility that the Company entered into in 2017 (the "Letter of Credit Facility"). 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 and the Letter of Credit Facility, "Availability Under Borrowing Base Limitation" is the same as "Remaining Capacity" since borrowings under the Senior RCF and the Letter of Credit Facility are not subject to a borrowing base. The following facilities were available to the Company as of March 31, 2018 , and are presented net of any outstanding letters of credit: (In millions) Remaining Availability Under Non-Vehicle Debt Senior RCF $ 519 $ 519 Letter of Credit Facility — — Total Non-Vehicle Debt 519 519 Vehicle Debt U.S. Vehicle RCF — — HVF II U.S. Vehicle Variable Funding Notes 757 — HFLF Variable Funding Notes 26 1 European Revolving Credit Facility 416 — European Securitization 200 — Canadian Securitization 62 — Australian Securitization 46 — U.K. Financing Facility 84 1 New Zealand RCF — — Total Vehicle Debt 1,591 2 Total $ 2,110 $ 521 Letters of Credit As of March 31, 2018 , there were outstanding standby letters of credit totaling $661 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, $648 million was issued under the Senior RCF and none were issued under the Letter of Credit Facility. As of March 31, 2018 , there was no availability under the $400 million letter of credit facility (the "Letter of Credit Facility") and no letters of credit were issued thereunder. As of March 31, 2018 , none of the issued letters of credit have been drawn upon. Special Purpose Entities Substantially all of the Company's 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. The Company has a 25% ownership interest in International Fleet Financing No. 2 B.V. ("IFF No. 2"), a special purpose entity 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. IFF No. 2 is a variable interest entity and the Company is the primary beneficiary, therefore, the assets, liabilities, and results of operations of IFF No. 2 are included in the Company's unaudited condensed consolidated financial statements. As of March 31, 2018 and December 31, 2017 , IFF No. 2 had total assets of $713 million and $524 million , respectively, primarily comprised of loan receivables, and total liabilities of $713 million and $524 million , respectively, primarily comprised of debt and loan payables. Covenant Compliance The financial covenant provides that Hertz’s consolidated first lien net leverage ratio, as defined in the credit agreements governing the Senior RCF and the Letter of Credit Facility, as of the last day of any fiscal quarter following and including fiscal quarter ending December 31, 2017 (the "Covenant Leverage Ratio"), may not exceed a ratio of 3.00 to 1.00 . As of March 31, 2018 , Hertz was in compliance with the Covenant Leverage Ratio. |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue The Company recognizes two types of revenue; (i) revenue from contracts with customers, and (ii) lease revenue, which is generated through the fleet leasing operations of its Donlen subsidiary. As disclosed in the Revenue from Contracts with Customers section of Note 2 , “ Basis of Presentation and Recently Issued Accounting Pronouncements ” (" Note 2 "), the Company adopted Topic 606 in accordance with the effective date on January 1, 2018. Note 2 includes disclosures regarding the Company’s method of adoption and the impact on the Company’s financial position, results of operations and cash flows. In the Leases section of Note 2 , the Company discloses that it has concluded that revenue earned from vehicle rentals, 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, will be accounted for under Topic 842 upon its adoption. Until the Company adopts Topic 842, vehicle rental and rental related revenues are recognized in accordance with Topic 606. The Company recognizes revenue net of any taxes or non-concession fees collected from customers on behalf of governmental authorities. Revenue from Contracts with Customers The Company operates at airport rental locations in the U.S. and internationally ("airport") and at off airport locations also in the U.S. and internationally ("off airport"). For the Company's airport company-operated rental locations, the Company has obtained concessions or similar leasing agreements or arrangements, granting it the right to conduct a vehicle rental business at the respective airport. The terms of an airport concession typically require the Company to pay the airport's operator concession fees based upon a specified percentage of the revenues it generates at the airport, subject to a minimum annual guarantee. The terms of the Company's concessions typically do not forbid it from seeking, and in a few instances actually require it to seek, reimbursement from customers for concession fees it pays; however, in certain jurisdictions the law limits or forbids the Company from doing so. Where the Company is required or permitted to seek such reimbursement, it is its general practice to do so. The Company's airport rental customers are typically airline travelers; whereas the Company's off airport rental customers include people who prefer to rent vehicles closer to their home or place of work for business or leisure purposes, as well as those needing to travel to or from airports. The Company's off airport customers also include people who have been referred by, or whose rental costs are being wholly or partially reimbursed by, insurance companies following accidents in which their vehicles were damaged, those expecting to lease vehicles that are not yet available from their leasing companies and replacement renters. In addition, the Company's off airport customers include drivers for transportation network companies ("TNC"). The following table presents revenues from contracts with customers by reportable segment and disaggregated by product/service and type of location and customer: Three Months Ending March 31, 2018 (In millions) U.S. Rental Car International Rental Car All Other Operations Consolidated Vehicle rental and rental related: Airport $ 982 $ 251 $ — $ 1,233 Off airport 412 185 — 597 Total vehicle rental and rental related 1,394 436 — 1,830 Other: Licensee revenue 6 32 — 38 Ancillary retail vehicle sales 26 — — 26 Fleet management — — 12 12 Total other 32 32 12 76 Total revenue from contracts with customers $ 1,426 $ 468 $ 12 $ 1,906 Vehicle Rental and Rental Related Revenues The Company recognizes revenue from its vehicle rental operations when persuasive evidence of a contract exists, the performance obligations have been satisfied, the transaction price is fixed or determinable and collection is reasonably assured. Performance obligations associated with vehicle rental transactions are satisfied over the rental period, except for the portion associated with loyalty points, as further described below. Rental periods are short-term in nature. Therefore, the Company has elected to apply the practical expedient which eliminates the requirement to disclose information about remaining performance obligations. Performance obligations associated with rental related activities, such as charges to the customer for the fueling of vehicles and value-added services such as loss damage waivers, insurance products, navigation units, supplemental equipment and other consumables, are also satisfied over the rental period. Revenue from charges that are passed through to the customer, such as gasoline, vehicle licensing and airport concession fees, is recorded on a gross basis with a corresponding charge to direct vehicle and operating expense. Sales commissions paid to third parties are generally expensed when incurred due to the short-term nature of the related transaction on which the commission was earned and are recorded within selling, general and administrative expenses. Payments are due from customers at the completion of the rental, except for customers with negotiated payment terms, generally net 30 days or less, which are invoiced and remain as accounts receivable until collected. Loyalty Programs - The Company offers loyalty programs, primarily Hertz Gold Plus Rewards, wherein customers are eligible to earn loyalty points that are redeemable for free rental days or can be converted to loyalty points for redemption of products and services under loyalty programs of other companies. Each transaction that generates loyalty points results in the deferral of revenue equivalent to the retail value of the redemption of the loyalty points. The associated revenue is recognized when the customer redeems the loyalty points at some point in the future. The retail value of loyalty points is estimated based on the expected retail value of the future vehicle rental to be provided less an estimated amount representing loyalty points that are not expected to be redeemed (“breakage”). Breakage is estimated on a quarterly basis and includes significant assumptions, such as historical breakage trends and internal Company forecasts. During the three months ended March 31, 2018, based on the net impact of loyalty points earned and redeemed by customers, the Company recognized $3 million of revenue. As of March 31, 2018, the value of unredeemed loyalty points was $266 million , which is recorded as a contract liability in accrued liabilities in the accompanying unaudited condensed consolidated balance sheet. Customer Rebates - The Company has business customers that rent vehicles based on terms that have been negotiated through contracts with their employers, or other entities with which they are associated (“commercial contracts”), which can differ substantially from the terms on which the Company rents vehicles to the general public. Some of the commercial contracts contain provisions which allow for rebates to the entity based on achieving a specific rental volume threshold. Rebates are treated as variable consideration and are recognized as a reduction of revenue at the time of the rental based on the rebate expected to be earned by the entity. Licensee Revenue The Company has franchise agreements which allow an independent entity to rent their vehicles under the Company’s brands, primarily Hertz, Dollar or Thrifty, for a fee (“franchise fee”). Franchise fees are earned over time for the duration of the franchise agreement and are typically based on the larger of a minimum payment or an amount representing a percentage of net sales of the franchised business. Franchise fees are recognized as earned and when collectability is reasonably assured. Franchise fees that relate to a future contract term, such as initial fees or renewal fees, are deferred and recognized over the term of the franchise agreement. The Company has elected to apply one of the practical expedients under Topic 606, and as such the value of unsatisfied performance obligations for sales-based royalty fees from franchisees is not disclosed. Ancillary Retail Vehicle Sales Revenue Ancillary retail vehicle sales represent revenues generated from the sale of warranty contracts, financing and title fees, and other ancillary services associated with vehicles disposed of at the Company’s retail outlets. These revenues are recorded at the point in time when the Company sells the product or provides the service to the customer. These revenues exclude the sale price of the vehicle which is a component of the gain or loss on the disposition and is included in depreciation of revenue earning vehicles and lease charges, net. Fleet Management Revenue The Company's Donlen subsidiary generates revenue from various fleet management services, such as fuel purchasing and management, preventive maintenance, repair consultation, toll management and accident management. Fleet management revenue is recognized net of any fees collected from customers on behalf of third party service providers, as services are rendered. Contract Balances The Company recognizes receivables and liabilities resulting from its contracts with customers. Contract receivables primarily consist of receivables from customers for vehicle rentals. Contract liabilities primarily consist of obligations to customers for prepaid vehicle rentals and related to the Company’s points-based loyalty programs. The contract liability balance as of March 31, 2018 was $388 million and is included in accrued liabilities in the accompanying unaudited condensed consolidated balance sheet. The contract liability as of January 1, 2018, after giving effect to the adoption of Topic 606, was $345 million and revenue recognized during the three months ended March 31, 2018 for such contract liabilities was $55 million . |
Income Tax (Provision) Benefit
Income Tax (Provision) Benefit | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Tax (Provision) Benefit | Income Tax (Provision) Benefit The Company recognized the income tax effects of the tax reform legislation commonly referred to as the Tax Cuts and Jobs Act ("TCJA") in its audited consolidated financial statements included in the Company’s 2017 Form 10-K in accordance with Staff Accounting Bulletin No. 118, which provides SEC staff guidance for the application of Topic 740, Income Taxes, in the reporting period in which the TCJA was signed into law. The guidance also provides for a measurement period of up to one year from the enactment date for the Company to complete the accounting for the U.S. tax law changes. As such, the Company’s 2017 financial results reflected the provisional estimate of the income tax effects of the TCJA. No subsequent adjustments have been made to the amounts recorded as of December 31, 2017, which continue to represent a provisional estimate of the impact of TCJA. The estimate of the impact of TCJA is based on certain assumptions and the Company's current interpretation, and may change, as the Company receives additional clarification and implementation guidance and as the interpretation of the TCJA evolves over time. The Company continues to analyze the impact of TCJA provisions effective January 1, 2018. The income tax provision for the three months ended March 31, 2018 incorporates the TCJA's changes to deductions for executive compensation and meals and entertainment. Other provisions effective January 1, 2018 include global intangible low-tax income ("GILTI"), base erosion anti-avoidance tax ("BEAT"), foreign-derived intangible income ("FDII"), and the interest deduction limitation. As of March 31, 2018 , the Company estimates no short-to-medium term tax liability related to GILTI, BEAT, FDII, or the interest deduction limitation. These are estimates and are based on the Company's current interpretation of the TCJA. These assumptions and interpretations may change as additional clarification and implementation guidance are issued as the interpretation of the TCJA evolves over time. The effective tax rate for the three months ended March 31, 2018 and 2017 was 13% and 24% , respectively. The Company recorded a tax benefit of $29 million for the three months ended March 31, 2018 , compared to $71 million for the three months ended March 31, 2017 . The lower effective income tax rate and related tax benefit were primarily due to the reduced corporate tax rate as a result of the TCJA and the composition of earnings by jurisdictions. |
Earnings (Loss) Per Share - Her
Earnings (Loss) Per Share - Hertz Global | 3 Months Ended |
Mar. 31, 2018 | |
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. The following table sets forth the computation of basic and diluted earnings (loss) per share: Three Months Ended (In millions, except per share data) 2018 2017 Basic and diluted earnings (loss) per share: Numerator: Net income (loss), basic and diluted $ (202 ) $ (223 ) Denominator: Basic weighted average common shares 83 83 Dilutive stock options, RSUs, PSUs and conversion shares — — Weighted average shares used to calculate diluted earnings per share 83 83 Antidilutive stock options, RSUs, PSUs and conversion shares 3 2 Earnings (loss) per share: Basic earnings (loss) per share $ (2.43 ) $ (2.69 ) Diluted earnings (loss) per share $ (2.43 ) $ (2.69 ) |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2018 | |
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 cash, restricted cash, 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, Restricted Cash Equivalents and Investments The Company’s cash equivalents and restricted cash equivalents primarily consist of investments in money market funds and time deposits. The Company determines the fair value of cash equivalents using a market approach based on quoted prices in active markets (Level 1 inputs). Investments in equity securities that are measured at fair value on a recurring basis consist of available for sale securities. The following table summarizes the ending balances of the Company's cash equivalents, restricted cash equivalents and investments: March 31, 2018 December 31, 2017 (In millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Money market funds and time deposits $ 790 $ — $ — $ 790 $ 634 $ — $ — $ 634 Equity securities 23 — — 23 — — — — 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 March 31, 2018 As of December 31, 2017 (In millions) Nominal Unpaid Principal Balance Aggregate Fair Value Nominal Unpaid Principal Balance Aggregate Fair Value Non-vehicle Debt $ 4,472 $ 4,315 $ 4,476 $ 4,438 Vehicle Debt 12,432 12,405 10,471 10,456 Total $ 16,904 $ 16,720 $ 14,947 $ 14,894 Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis As further described in Note 3 , " Acquisitions and Divestitures ", in March 2017, the Company determined it had an other than temporary loss in value of its equity method investment. |
Contingencies and Off-Balance S
Contingencies and Off-Balance Sheet Commitments | 3 Months Ended |
Mar. 31, 2018 | |
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 unaudited 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. As of March 31, 2018 and December 31, 2017 , the Company's liability recorded for public liability and property damage matters was $438 million and $427 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, typically involving operational issues common to the vehicle rental business, including claims by employees and former employees, and governmental investigations. The Company has summarized below the most significant legal proceedings to which the Company was and/or is a party to during the three months ended March 31, 2018 or the period after March 31, 2018 , but before the filing of this Report on Form 10‑Q. 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 (as defined in the Company's 2017 Form 10-K) 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. The plaintiffs filed their Initial Brief in November 2017 and Hertz’s Opposition Brief was filed in January 2018. The plaintiffs’ Reply Brief was filed in February 2018 so all of the briefing is concluded. Oral arguments have been requested. It is expected that the Third Circuit will rule on this appeal before the end of 2018. The Company intends to assert that it has meritorious defenses in the foregoing matters and the Company intends to vigorously defend itself. 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 - an investigation that has since closed - and starting in June 2016 the Company has had communications with the U.S. 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 certain of these government entities continue. 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 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. In March 2017, the Company received an adverse judgment in the 2003 -2005 road tax appeal from the Civil Court of Appeal. The Company appealed this decision to the Supreme Civil Court in May 2017. In December 2017, the French Tax Authority issued an assessment for registration tax for the year 2014 and the Company submitted a rebuttal to the French Tax Authority in February 2018. The Company began reserving for this matter in 2015 and assesses the reserve on a quarterly basis as part of the financial statements close process. In addition to the matters described above, the Company maintains an internal compliance program through which it from time to time identifies other potential violations of laws and regulations applicable to the Company. When the Company identifies such matters, the Company conducts an internal investigation and otherwise cooperates with governmental authorities, as appropriate. 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. These matters are 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 has 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 | 3 Months Ended |
Mar. 31, 2018 | |
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 and leases property from entities controlled by Carl C. Icahn and his affiliates, including The Pep Boys - Manny, Moe & Jack. During the three months ended March 31, 2018 and 2017 , the Company purchased approximately $6 million and $2 million , respectively, worth of goods and services from these related parties. Transactions between Hertz Holdings and Hertz In June 2016, Hertz entered into a master loan agreement with Hertz Holdings for a facility size of $425 million with an expiration in June 2017 (the "2016 Master Loan"). The interest rate was based on the U.S. Dollar LIBOR rate plus a margin. In June 2017, upon expiration of the 2016 Master Loan, Hertz entered into a new master loan agreement with Hertz Holdings for a facility size of $425 million with an expiration in June 2018 (the "2017 Master Loan") where amounts outstanding under the 2016 Master Loan were transferred to the 2017 Master Loan. The interest rate is based on the U.S. Dollar LIBOR rate plus a margin. As of March 31, 2018 and December 31, 2017 , there was $111 million and $107 million , respectively, outstanding under the 2017 Master Loan representing advances and any accrued but unpaid interest. As of March 31, 2018 and December 31, 2017 , 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 unaudited condensed consolidated balance sheets of Hertz. Other Relationships In January 2018, Hertz entered into a Master Motor Vehicle Lease and Management Agreement (the “767 Lease Agreement”) pursuant to which Hertz granted 767 Auto Leasing LLC (“767”), an entity affiliated with the Icahn Group, the option to acquire certain vehicles from Hertz at rates aligned with the rates at which Hertz sells vehicles to third parties. Hertz will lease the vehicles, purchased by 767 under the 767 Lease Agreement or from third parties, under a mutually developed fleet plan and Hertz will manage, service, repair, sell and maintain those leased vehicles on behalf of 767. Hertz will rent the leased vehicles to drivers of TNC, including Lyft drivers, from rental counters within locations leased or owned by affiliates of 767, including locations operated under a master lease agreement with The Pep Boys - Manny, Joe & Jack. The 767 Lease Agreement has an initial term of 18 months and is subject to automatic six-month renewals thereafter, unless terminated by either party (with or without cause) prior to the start of any such six-month renewal. 767’s payment obligations under the 767 Lease Agreement are guaranteed by American Entertainment Properties Corp., an entity affiliated with Mr. Icahn. 767 commenced operations in late-March 2018. The Company is entitled to 25% of the profit from the rental of the leased vehicles, as specified in the 767 Lease Agreement, which is variable and based primarily on the rental revenue, less certain costs, such as depreciation, licensing and maintenance expenses. The Company has determined that it is the primary beneficiary of 767 due to its power to direct the activities of 767 that most significantly impact 767's economic performance and the Company's obligation to absorb 25% of 767's gains/losses. Accordingly, 767 is consolidated by the Company as a VIE. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2018 | |
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 value-added services, in the U.S. and consists of the Company's U.S. operating segment; • International Rental Car ("International RAC") - rental and leasing of vehicles (cars, vans, crossovers and light trucks), as well as sales of value-added 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 pre-tax income (loss), the segment measure of profitability. Three Months Ended (In millions) 2018 2017 Revenues U.S. Rental Car $ 1,426 $ 1,353 International Rental Car 468 411 All Other Operations 169 152 Total Hertz Global and Hertz $ 2,063 $ 1,916 Depreciation of revenue earning vehicles and lease charges, net U.S. Rental Car $ 434 $ 499 International Rental Car 102 85 All Other Operations 125 117 Total Hertz Global and Hertz $ 661 $ 701 Adjusted pre-tax income (loss) (a) U.S. Rental Car $ (48 ) $ (116 ) International Rental Car (6 ) (4 ) All Other Operations 22 21 Corporate (143 ) (114 ) Total Hertz Global (175 ) (213 ) Corporate - Hertz 1 1 Total Hertz $ (174 ) $ (212 ) (In millions) March 31, 2018 December 31, 2017 Total Assets U.S. Rental Car $ 14,184 $ 12,785 International Rental Car 4,885 3,971 All Other Operations 1,755 1,700 Corporate 1,497 1,602 Total Hertz Global and Hertz $ 22,321 $ 20,058 (a) Adjusted pre-tax income (loss), the Company's segment profitability measure, is calculated as income (loss) 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 and premiums, goodwill, intangible and tangible asset impairments and write downs, information technology and finance transformation costs and certain other miscellaneous or non-recurring items. Reconciliations of adjusted pre-tax income (loss) by segment to consolidated amounts are summarized below. Hertz Global Three Months Ended (In millions) 2018 2017 Adjusted pre-tax income (loss): U.S. Rental Car $ (48 ) $ (116 ) International Rental Car (6 ) (4 ) All Other Operations 22 21 Total reportable segments (32 ) (99 ) Corporate (1) (143 ) (114 ) Adjusted pre-tax income (loss) (175 ) (213 ) Adjustments: Acquisition accounting (2) (15 ) (16 ) Debt-related charges (3) (16 ) (10 ) Restructuring and restructuring related charges (4) (4 ) (8 ) Impairment charges and asset write-downs (5) — (30 ) Information technology and finance transformation costs (6) (23 ) (19 ) Other (7) 2 2 Income (loss) before income taxes $ (231 ) $ (294 ) Hertz Three Months Ended (In millions) 2018 2017 Adjusted pre-tax income (loss): U.S. Rental Car $ (48 ) $ (116 ) International Rental Car (6 ) (4 ) All Other Operations 22 21 Total reportable segments (32 ) (99 ) Corporate (1) (142 ) (113 ) Adjusted pre-tax income (loss) (174 ) (212 ) Adjustments: Acquisition accounting (2) (15 ) (16 ) Debt-related charges (3) (16 ) (10 ) Restructuring and restructuring related charges (4) (4 ) (8 ) Impairment charges and asset write-downs (5) — (30 ) Information technology and finance transformation costs (6) (23 ) (19 ) Other (7) 2 2 Income (loss) before income taxes $ (230 ) $ (293 ) (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) Primarily represents debt-related charges relating to the amortization of deferred financing costs and debt discounts and premiums. (4) Represents charges incurred under restructuring actions as defined in U.S. GAAP, excluding impairments and asset write-downs, which are shown separately in the table. Also includes restructuring related 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. (5) In 2017, represents an impairment of $30 million related to an equity method investment. (6) Represents costs associated with the Company’s information technology and finance transformation programs, both of which are multi-year initiatives to upgrade and modernize the Company’s systems and processes. (7) Represents miscellaneous or non-recurring items. |
Guarantor and Non-Guarantor Con
Guarantor and Non-Guarantor Condensed Consolidating Financial Information - Hertz | 3 Months Ended |
Mar. 31, 2018 | |
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 March 31, 2018 and December 31, 2017 , the Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) for the three months ended March 31, 2018 and 2017 and the Statements of Cash Flows for the three months ended March 31, 2018 and 2017 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 year ended December 31, 2017, it was determined that there were classification errors within the investing section of the statements of cash flows that resulted in overstatement of capital contributions to subsidiaries and return of capital from subsidiaries for the Parent and classification errors within the financing section of the statements of cash flows that resulted in overstatement of capital contributions received from parent and payment of dividends and returns of capital for the Non-Guarantor Subsidiaries. The overstatement was $134 million for the three months ended March 31, 2017. The errors, which the Company has determined are not material to this disclosure, had no impact to cash from investing activities for the Parent or cash from financing activities of the Non-Guarantor Subsidiaries, and had no impact to any cash flows of the Guarantor Subsidiaries. These errors are eliminated in consolidation and therefore have no impact on the Company’s unaudited condensed consolidated financial condition, results of operations or cash flows. The Company has revised the Condensed Consolidating Statements of Cash Flows for the Parent, Non-Guarantor Subsidiaries and Eliminations for the three months ended March 31, 2017 to correct for these errors. THE HERTZ CORPORATION CONDENSED CONSOLIDATING BALANCE SHEET March 31, 2018 (In millions) Parent (The Hertz Corporation) Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations The Hertz Corporation & Subsidiaries ASSETS Cash and cash equivalents $ 603 $ 12 $ 431 $ — $ 1,046 Restricted cash and cash equivalents 87 8 799 — 894 Total cash, cash equivalents, restricted cash and restricted cash equivalents 690 20 1,230 — 1,940 Receivables, net of allowance 165 166 1,001 — 1,332 Due from affiliates 3,437 4,793 8,634 (16,864 ) — Prepaid expenses and other assets 4,313 36 316 (3,555 ) 1,110 Revenue earning vehicles, net 388 4 12,432 — 12,824 Property and equipment, net 623 60 144 — 827 Investment in subsidiaries, net 7,496 1,270 — (8,766 ) — Other intangible assets, net 117 3,078 9 — 3,204 Goodwill 102 943 39 — 1,084 Total assets $ 17,331 $ 10,370 $ 23,805 $ (29,185 ) $ 22,321 LIABILITIES AND STOCKHOLDER'S EQUITY Due to affiliates $ 10,357 $ 2,229 $ 4,278 $ (16,864 ) $ — Accounts payable 425 112 921 — 1,458 Accrued liabilities 607 72 493 — 1,172 Accrued taxes, net 77 20 2,299 (2,233 ) 163 Debt 4,564 — 12,247 — 16,811 Public liability and property damage 168 38 232 — 438 Deferred income taxes, net — 1,465 998 (1,322 ) 1,141 Total liabilities 16,198 3,936 21,468 (20,419 ) 21,183 Stockholder's equity: Total stockholder's equity attributable to Hertz 1,133 6,434 2,332 (8,766 ) 1,133 Non-controlling interest — — 5 — 5 Total stockholder's equity 1,133 6,434 2,337 (8,766 ) 1,138 Total liabilities and stockholder's equity $ 17,331 $ 10,370 $ 23,805 $ (29,185 ) $ 22,321 THE HERTZ CORPORATION CONDENSED CONSOLIDATING BALANCE SHEET December 31, 2017 (In millions) Parent (The Hertz Corporation) Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations The Hertz Corporation & Subsidiaries ASSETS Cash and cash equivalents $ 686 $ 9 $ 377 $ — $ 1,072 Restricted cash and cash equivalents 225 7 200 — 432 Total cash, cash equivalents, restricted cash and restricted cash equivalents 911 16 577 — 1,504 Receivables, net of allowance 366 167 832 — 1,365 Due from affiliates 3,373 4,567 8,794 (16,734 ) — Prepaid expenses and other assets 3,747 37 302 (3,399 ) 687 Revenue earning vehicles, net 352 2 10,982 — 11,336 Property and equipment, net 639 61 140 — 840 Investment in subsidiaries, net 7,966 1,265 — (9,231 ) — Other intangible assets, net 141 3,091 10 — 3,242 Goodwill 102 944 38 — 1,084 Total assets $ 17,597 $ 10,150 $ 21,675 $ (29,364 ) $ 20,058 LIABILITIES AND STOCKHOLDER'S EQUITY Due to affiliates $ 10,368 $ 2,156 $ 4,210 $ (16,734 ) $ — Accounts payable 375 92 479 — 946 Accrued liabilities 473 73 374 — 920 Accrued taxes, net 77 21 2,235 (2,173 ) 160 Debt 4,619 — 10,246 — 14,865 Public liability and property damage 165 37 225 — 427 Deferred income taxes, net — 1,451 995 (1,226 ) 1,220 Total liabilities 16,077 3,830 18,764 (20,133 ) 18,538 Stockholder's equity: Total stockholder's equity 1,520 6,320 2,911 (9,231 ) 1,520 Total liabilities and stockholder's equity $ 17,597 $ 10,150 $ 21,675 $ (29,364 ) $ 20,058 THE HERTZ CORPORATION CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) For the Three Months Ended March 31, 2018 (In millions) Parent (The Hertz Corporation) Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations The Hertz Corporation & Subsidiaries Total revenues $ 1,056 $ 319 $ 1,489 $ (801 ) $ 2,063 Expenses: Direct vehicle and operating 751 172 313 — 1,236 Depreciation of revenue earning vehicles and lease charges, net 766 84 612 (801 ) 661 Selling, general and administrative 161 12 61 — 234 Interest (income) expense, net 102 (33 ) 96 — 165 Other (income) expense, net (2 ) — (1 ) — (3 ) Total expenses 1,778 235 1,081 (801 ) 2,293 Income (loss) before income taxes and equity in earnings (losses) of subsidiaries (722 ) 84 408 — (230 ) Income tax (provision) benefit 122 (14 ) (79 ) — 29 Equity in earnings (losses) of subsidiaries, net of tax 399 25 — (424 ) — Net income (loss) (201 ) 95 329 (424 ) (201 ) Other comprehensive income (loss), net of tax (3 ) (2 ) (3 ) 5 (3 ) Comprehensive income (loss) $ (204 ) $ 93 $ 326 $ (419 ) $ (204 ) THE HERTZ CORPORATION CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) For the Three Months Ended March 31, 2017 (In millions) Parent (The Hertz Corporation) Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations The Hertz Corporation & Subsidiaries Total revenues $ 991 $ 307 $ 1,377 $ (759 ) $ 1,916 Expenses: Direct vehicle and operating 688 169 275 — 1,132 Depreciation of revenue earning vehicles and lease charges, net 737 102 621 (759 ) 701 Selling, general and administrative 150 11 59 — 220 Interest (income) expense, net 82 (22 ) 69 — 129 Other (income) expense, net 33 — (6 ) — 27 Total expenses 1,690 260 1,018 (759 ) 2,209 Income (loss) before income taxes and equity in earnings (losses) of subsidiaries (699 ) 47 359 — (293 ) Income tax (provision) benefit 214 (15 ) (128 ) — 71 Equity in earnings (losses) of subsidiaries, net of tax 263 32 — (295 ) — Net income (loss) (222 ) 64 231 (295 ) (222 ) Other comprehensive income (loss), net of tax 13 — 12 (12 ) 13 Comprehensive income (loss) $ (209 ) $ 64 $ 243 $ (307 ) $ (209 ) THE HERTZ CORPORATION CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the Three Months Ended March 31, 2018 (In millions) Parent (The Hertz Corporation) Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations The Hertz Corporation & Subsidiaries Net cash provided by (used in) operating activities $ (221 ) $ 7 $ 957 $ (341 ) $ 402 Cash flows from investing activities: Revenue earning vehicles expenditures (129 ) — (3,436 ) — (3,565 ) Proceeds from disposal of revenue earning vehicles 48 — 1,734 — 1,782 Capital asset expenditures, non-vehicle (28 ) (3 ) (13 ) — (44 ) Proceeds from disposal of property and other equipment — — 4 — 4 Other (24 ) — (3 ) — (27 ) Capital contributions to subsidiaries (877 ) — — 877 — Return of capital from subsidiaries 1,307 — — (1,307 ) — Loan to Parent/Guarantor from Non-Guarantor — — 235 (235 ) — Net cash provided by (used in) investing activities 297 (3 ) (1,479 ) (665 ) (1,850 ) Cash flows from financing activities: Proceeds from issuance of vehicle debt 554 — 4,627 — 5,181 Repayments of vehicle debt (607 ) — (2,676 ) — (3,283 ) Proceeds from issuance of non-vehicle debt 127 — — — 127 Repayments of non-vehicle debt (131 ) — — — (131 ) Payment of financing costs (1 ) — (18 ) — (19 ) Advances to Hertz Holdings (4 ) — — — (4 ) Other — — 5 — 5 Capital contributions received from parent — — 877 (877 ) — Payment of dividends and return of capital — — (1,648 ) 1,648 — Loan to Parent/Guarantor from Non-Guarantor (235 ) — — 235 — Net cash provided by (used in) financing activities (297 ) — 1,167 1,006 1,876 Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents — — 8 — 8 Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents during the period (221 ) 4 653 — 436 Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period 911 16 577 — 1,504 Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period $ 690 $ 20 $ 1,230 $ — $ 1,940 THE HERTZ CORPORATION CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the Three Months Ended March 31, 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 $ (727 ) $ 5 $ 1,488 $ (280 ) $ 486 Cash flows from investing activities: Revenue earning vehicles expenditures (89 ) (1 ) (2,747 ) — (2,837 ) Proceeds from disposal of revenue earning vehicles 49 — 1,886 — 1,935 Capital asset expenditures, non-vehicle (29 ) (3 ) (9 ) — (41 ) Proceeds from disposal of property and other equipment 5 — 2 — 7 Other — — 9 — 9 Capital contributions to subsidiaries (528 ) — — 528 — Return of capital from subsidiaries 1,016 — — (1,016 ) — Loan to Parent/Guarantor from Non-Guarantor — — (316 ) 316 — Net cash provided by (used in) investing activities 424 (4 ) (1,175 ) (172 ) (927 ) Cash flows from financing activities: Proceeds from issuance of vehicle debt 276 — 1,822 — 2,098 Repayments of vehicle debt (276 ) — (1,416 ) — (1,692 ) Proceeds from issuance of non-vehicle debt 100 — — — 100 Repayments of non-vehicle debt (102 ) — — — (102 ) Payment of financing costs (5 ) — (7 ) — (12 ) Advances to Hertz Holdings (2 ) — — — (2 ) Capital contributions received from parent — — 528 (528 ) — Payment of dividends and return of capital — — (1,296 ) 1,296 — Loan to Parent/Guarantor from Non-Guarantor 316 — — (316 ) — Net cash provided by (used in) financing activities 307 — (369 ) 452 390 Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents (1 ) — 9 — 8 Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents during the period 3 1 (47 ) — (43 ) Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period 511 17 566 — 1,094 Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period $ 514 $ 18 $ 519 $ — $ 1,051 |
Basis of Presentation and Rec20
Basis of Presentation and Recently Issued Accounting Pronouncements (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
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. The Company is the primary beneficiary of certain variable interest entities, therefore, the assets, liabilities, results of operations and cash flows of the variable interest entities are included in the Company's unaudited condensed 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 | The impact to the unaudited condensed consolidated statement of cash flows of adopting this guidance was as follows: Hertz Global Three months ended March 31, 2017 (In millions) As Previously Reported Adjustments As Adjusted Net change in restricted cash and cash equivalents, vehicle $ 14 $ (14 ) $ — Net cash provided by (used in) investing activities (a) (913 ) (14 ) (927 ) Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash 6 2 8 Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period 816 278 1,094 Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period 785 266 1,051 Hertz Three months ended March 31, 2017 (In millions) As Previously Reported Adjustments As Adjusted Net change in restricted cash and cash equivalents, vehicle $ 14 $ (14 ) $ — Net cash provided by (used in) investing activities (a) (913 ) (14 ) (927 ) Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash 6 2 8 Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period 816 278 1,094 Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period 785 266 1,051 (a) Amount previously reported includes the $13 million revision to correct for an error as disclosed above in "Correction of Errors." Recently Issued Accounting Pronouncements Adopted Revenue from Contracts with Customers In May 2014, the Financial Accounting Standards Board (the "FASB") issued guidance that replaced most existing revenue recognition guidance in U.S. GAAP. The FASB also issued several amendments and updates to the new revenue standard (collectively, “Topic 606”). Topic 606 applies to all contracts with customers except for leases, insurance contracts, financial instruments, certain nonmonetary exchanges and certain guarantees. The core principle of Topic 606 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, as well as when an entity should recognize revenue gross as a principal or net as an agent and how an entity should identify performance obligations. Topic 606 requires disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments. The Company adopted Topic 606 on the effective date, January 1, 2018, using a modified retrospective approach applied to all contracts. Prior periods were not retrospectively adjusted. The impact to the Company’s financial position, results of operations and cash flows is primarily for revenue associated with the redemption of points earned by customers under the Company’s loyalty programs (“loyalty points”). For transactions that generate loyalty points to the customer, a portion of revenue is deferred until the loyalty points are redeemed by the customer. The amount of revenue deferred is equivalent to the retail value of each loyalty point less an estimated amount representing loyalty points that are not expected to be redeemed. The cumulative effect of applying the new guidance to all contracts with customers that were not completed as of January 1, 2018 was recorded as an adjustment to accumulated deficit, net of tax, as of the adoption date as follows: Hertz Global (In millions) Deferred income taxes, net Accrued liabilities Total liabilities Accumulated deficit Total equity Total liabilities and equity As of December 31, 2017 $ 1,220 $ 920 $ 18,538 $ (506 ) $ 1,520 $ 20,058 Effect of Adopting ASC 606 (51 ) 240 189 (189 ) (189 ) — As of January 1, 2018 $ 1,169 $ 1,160 $ 18,727 $ (695 ) $ 1,331 $ 20,058 Hertz (In millions) Deferred income taxes, net Accrued liabilities Total liabilities Accumulated deficit Total equity Total liabilities and equity As of December 31, 2017 $ 1,220 $ 920 $ 18,538 $ (1,486 ) $ 1,520 $ 20,058 Effect of Adopting ASC 606 (51 ) 240 189 (189 ) (189 ) — As of January 1, 2018 $ 1,169 $ 1,160 $ 18,727 $ (1,675 ) $ 1,331 $ 20,058 As disclosed above, the Company adopted Topic 606 on a modified retrospective basis, therefore, historical financial information has not been restated for comparative purposes and continues to be reported under the accounting standards in effect for those periods (“legacy guidance”). The following table presents the amounts for line items in the Company’s unaudited condensed consolidated balance sheet, statement of operations and cash flows impacted by the adoption of Topic 606 as compared to the amounts that would have been recognized in accordance with legacy guidance. The impact to the Company's unaudited condensed consolidated statement of comprehensive income (loss) is comprised solely of the impact to net income (loss) as shown in the table below: Hertz Global As of or for the Three Months Ended March 31, 2018 (In millions, except per share data) As Reported Effect of Adoption Increase (Decrease) Balances Without Adoption Unaudited Condensed Consolidated Balance Sheet: Accrued liabilities $ 1,172 $ 238 $ 934 Deferred income taxes, net 1,141 (51 ) 1,192 Total liabilities 21,183 187 20,996 Accumulated deficit (897 ) (187 ) (710 ) Total stockholders' equity 1,138 (187 ) 1,325 Unaudited Condensed Consolidated Statement of Operations: Worldwide vehicle rental revenues 1,894 3 1,891 Selling, general and administrative expense 234 1 233 Income (loss) before income taxes (231 ) 2 (233 ) Income tax (provision) benefit 29 — 29 Net income (loss) (202 ) 2 (204 ) Basic earnings (loss) per share (2.43 ) 0.03 (2.46 ) Diluted earnings (loss) per share (2.43 ) 0.03 (2.46 ) Unaudited Condensed Consolidated Statement of Cash Flow: Cash flows from operating activities: Net income (loss) (202 ) 2 (204 ) Deferred income taxes, net (36 ) — (36 ) Accrued liabilities 4 (2 ) 6 Hertz As of or for the Three Months Ended March 31, 2018 (In millions, except per share data) As Reported Effect of Adoption Increase (Decrease) Balances Without Adoption Unaudited Condensed Consolidated Balance Sheet: Accrued liabilities $ 1,172 $ 238 $ 934 Deferred income taxes, net 1,141 (51 ) 1,192 Total liabilities 21,183 187 20,996 Accumulated deficit (1,876 ) (187 ) (1,689 ) Total stockholders' equity 1,138 (187 ) 1,325 Unaudited Condensed Consolidated Statement of Operations: Worldwide vehicle rental revenues 1,894 3 1,891 Selling, general and administrative expense 234 1 233 Income (loss) before income taxes (230 ) 2 (232 ) Income tax (provision) benefit 29 — 29 Net income (loss) (201 ) 2 (203 ) Unaudited Condensed Consolidated Statement of Cash Flow: Cash flows from operating activities: Net income (loss) (201 ) 2 (203 ) Deferred income taxes, net (36 ) — (36 ) Accrued liabilities 4 (2 ) 6 See Note 6 , " Revenue ," for information regarding the Company’s accounting policies for revenue recognition, including the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers, as well as other required disclosures under Topic 606. 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 show the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. Additionally, entities will no longer present transfers between cash and cash equivalents and restricted cash and restricted cash equivalents in the statement of cash flows. The Company adopted this guidance retrospectively in accordance with the effective date on January 1, 2018. Adoption of this guidance had no impact on the Company's financial position or results of operations. The impact to the unaudited condensed consolidated statement of cash flows of adopting this guidance was as follows: Hertz Global Three months ended March 31, 2017 (In millions) As Previously Reported Adjustments As Adjusted Net change in restricted cash and cash equivalents, vehicle $ 14 $ (14 ) $ — Net cash provided by (used in) investing activities (a) (913 ) (14 ) (927 ) Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash 6 2 8 Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period 816 278 1,094 Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period 785 266 1,051 Hertz Three months ended March 31, 2017 (In millions) As Previously Reported Adjustments As Adjusted Net change in restricted cash and cash equivalents, vehicle $ 14 $ (14 ) $ — Net cash provided by (used in) investing activities (a) (913 ) (14 ) (927 ) Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash 6 2 8 Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period 816 278 1,094 Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period 785 266 1,051 (a) Amount previously reported includes the $13 million revision to correct for an error as disclosed above in "Correction of Errors." Not Yet Adopted Leases In February 2016, the FASB issued guidance that replaces the existing lease guidance in U.S. GAAP. The new guidance (Topic "842") 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. Topic 842 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. Topic 842 is effective for annual periods beginning after December 15, 2018 and interim periods within those annual periods with early adoption permitted. The Company intends to adopt this guidance, in accordance with the effective date, on January 1, 2019. 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. The Company is evaluating the Proposed Accounting Standards Update, Leases (Topic 842) Targeted Improvements that were tentatively affirmed by the FASB at its March 2018 meetings. The update provides a transition method that would allow the Company to only apply the new lease standard in the year of adoption. Additionally, it provides a practical expedient for lessors to combine non-lease components with the related lease components if certain conditions are met. This could allow the Company to account for all revenue earned from the operations of rental vehicles and from other forms of rental related activities under the new lease guidance. Lessee Adoption of Topic 842 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 Topic 842 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 from 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. The Company is in the process of evaluating the breakdown of its vehicle rental revenues into lease and non-lease components. There is no impact to the nature, timing or recognition of rental lease revenue upon adoption of this guidance. Reporting Comprehensive Income In February 2018, the FASB issued guidance that allows a reclassification from accumulated other comprehensive income to retained earnings for the stranded tax effects resulting from the U.S. Tax Cuts and Jobs Act ("TCJA"). The guidance is effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods. The guidance should be applied either in the period of adoption or retrospectively to each period in which the effect of the change in the U.S. federal corporate income tax rate in the TCJA is recognized. Early adoption is permitted, including adoption in any interim period. Adoption of this guidance will result in a reclassification of certain amounts from accumulated other comprehensive income to retained earnings as of the date adopted. |
Basis of Presentation and Rec21
Basis of Presentation and Recently Issued Accounting Pronouncements (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The cumulative effect of applying the new guidance to all contracts with customers that were not completed as of January 1, 2018 was recorded as an adjustment to accumulated deficit, net of tax, as of the adoption date as follows: Hertz Global (In millions) Deferred income taxes, net Accrued liabilities Total liabilities Accumulated deficit Total equity Total liabilities and equity As of December 31, 2017 $ 1,220 $ 920 $ 18,538 $ (506 ) $ 1,520 $ 20,058 Effect of Adopting ASC 606 (51 ) 240 189 (189 ) (189 ) — As of January 1, 2018 $ 1,169 $ 1,160 $ 18,727 $ (695 ) $ 1,331 $ 20,058 Hertz (In millions) Deferred income taxes, net Accrued liabilities Total liabilities Accumulated deficit Total equity Total liabilities and equity As of December 31, 2017 $ 1,220 $ 920 $ 18,538 $ (1,486 ) $ 1,520 $ 20,058 Effect of Adopting ASC 606 (51 ) 240 189 (189 ) (189 ) — As of January 1, 2018 $ 1,169 $ 1,160 $ 18,727 $ (1,675 ) $ 1,331 $ 20,058 As disclosed above, the Company adopted Topic 606 on a modified retrospective basis, therefore, historical financial information has not been restated for comparative purposes and continues to be reported under the accounting standards in effect for those periods (“legacy guidance”). The following table presents the amounts for line items in the Company’s unaudited condensed consolidated balance sheet, statement of operations and cash flows impacted by the adoption of Topic 606 as compared to the amounts that would have been recognized in accordance with legacy guidance. The impact to the Company's unaudited condensed consolidated statement of comprehensive income (loss) is comprised solely of the impact to net income (loss) as shown in the table below: Hertz Global As of or for the Three Months Ended March 31, 2018 (In millions, except per share data) As Reported Effect of Adoption Increase (Decrease) Balances Without Adoption Unaudited Condensed Consolidated Balance Sheet: Accrued liabilities $ 1,172 $ 238 $ 934 Deferred income taxes, net 1,141 (51 ) 1,192 Total liabilities 21,183 187 20,996 Accumulated deficit (897 ) (187 ) (710 ) Total stockholders' equity 1,138 (187 ) 1,325 Unaudited Condensed Consolidated Statement of Operations: Worldwide vehicle rental revenues 1,894 3 1,891 Selling, general and administrative expense 234 1 233 Income (loss) before income taxes (231 ) 2 (233 ) Income tax (provision) benefit 29 — 29 Net income (loss) (202 ) 2 (204 ) Basic earnings (loss) per share (2.43 ) 0.03 (2.46 ) Diluted earnings (loss) per share (2.43 ) 0.03 (2.46 ) Unaudited Condensed Consolidated Statement of Cash Flow: Cash flows from operating activities: Net income (loss) (202 ) 2 (204 ) Deferred income taxes, net (36 ) — (36 ) Accrued liabilities 4 (2 ) 6 Hertz As of or for the Three Months Ended March 31, 2018 (In millions, except per share data) As Reported Effect of Adoption Increase (Decrease) Balances Without Adoption Unaudited Condensed Consolidated Balance Sheet: Accrued liabilities $ 1,172 $ 238 $ 934 Deferred income taxes, net 1,141 (51 ) 1,192 Total liabilities 21,183 187 20,996 Accumulated deficit (1,876 ) (187 ) (1,689 ) Total stockholders' equity 1,138 (187 ) 1,325 Unaudited Condensed Consolidated Statement of Operations: Worldwide vehicle rental revenues 1,894 3 1,891 Selling, general and administrative expense 234 1 233 Income (loss) before income taxes (230 ) 2 (232 ) Income tax (provision) benefit 29 — 29 Net income (loss) (201 ) 2 (203 ) Unaudited Condensed Consolidated Statement of Cash Flow: Cash flows from operating activities: Net income (loss) (201 ) 2 (203 ) Deferred income taxes, net (36 ) — (36 ) Accrued liabilities 4 (2 ) 6 |
Revenue Earning Vehicles (Table
Revenue Earning Vehicles (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Revenue Earning Vehicles [Abstract] | |
Components of Revenue Earning Vehicles | The components of revenue earning vehicles, net are as follows: (In millions) March 31, 2018 December 31, 2017 Revenue earning vehicles $ 15,680 $ 14,209 Less: Accumulated depreciation (3,147 ) (3,123 ) 12,533 11,086 Revenue earning vehicles held for sale, net 291 250 Revenue earning vehicles, net $ 12,824 $ 11,336 |
Depreciation on Revenue Earning Vehicles and Lease Charges | Depreciation of revenue earning vehicles and lease charges, net includes the following: Three Months Ended (In millions) 2018 2017 Depreciation of revenue earning vehicles $ 594 $ 605 (Gain) loss on disposal of revenue earning vehicles (a) 47 79 Rents paid for vehicles leased 20 17 Depreciation of revenue earning vehicles and lease charges, net $ 661 $ 701 (a) (Gain) loss on disposal of revenue earning vehicles by segment is as follows: Three Months Ended (In millions) 2018 2017 U.S. Rental Car (i) $ 45 $ 78 International Rental Car 2 1 Total $ 47 $ 79 (i) Includes costs associated with the Company's U.S. vehicle sales operations of $36 million and $30 million for the three months ended March 31, 2018 and 2017 , respectively |
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 (In millions) 2018 2017 U.S. Rental Car $ 9 $ 26 International Rental Car 2 — Total $ 11 $ 26 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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 Fixed or Maturity March 31, December 31, Non-Vehicle Debt Senior Term Loan 4.63% Floating 6/2023 $ 684 $ 688 Senior RCF N/A Floating 6/2021 — — Senior Notes (1) 6.13% Fixed 10/2020-10/2024 2,500 2,500 Senior Second Priority Secured Notes 7.63% Fixed 6/2022 1,250 1,250 Promissory Notes 7.00% Fixed 1/2028 27 27 Other Non-Vehicle Debt 1.92% Fixed Various 11 11 Unamortized Debt Issuance Costs and Net (Discount) Premium (40 ) (42 ) Total Non-Vehicle Debt 4,432 4,434 Vehicle Debt HVF U.S. Vehicle Medium Term Notes HVF Series 2010-1 (2) N/A N/A N/A — 39 HVF Series 2013-1 (2) 1.91% Fixed 8/2018 521 625 521 664 HVF II U.S. ABS Program HVF II U.S. Vehicle Variable Funding Notes HVF II Series 2013-A (2) 3.20% Floating 3/2020 2,590 1,970 HVF II Series 2013-B (2) 3.11% Floating 3/2020 68 123 2,658 2,093 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) 2.45% Fixed 9/2018 265 265 HVF II Series 2015-3 (2) 3.10% Fixed 9/2020 371 371 HVF II Series 2016-1 (2) 2.89% Fixed 3/2019 466 466 HVF II Series 2016-2 (2) 3.41% Fixed 3/2021 595 595 HVF II Series 2016-3 (2) 2.72% Fixed 7/2019 424 424 HVF II Series 2016-4 (2) 3.09% Fixed 7/2021 424 424 HVF II Series 2017-1 (2) 3.38% Fixed 10/2020 450 450 HVF II Series 2017-2 (2) 3.57% Fixed 10/2022 350 350 HVF II Series 2018-1 (2) 3.41% Fixed 2/2023 1,000 — 5,125 4,125 Donlen ABS Program HFLF Variable Funding Notes HFLF Series 2013-2 (2) 2.59% Floating 3/2020 474 380 474 380 Facility Weighted Average Interest Rate Fixed or Maturity March 31, December 31, HFLF Medium Term Notes HFLF Series 2015-1 (4) 2.57% Floating 4/2018-5/2019 116 145 HFLF Series 2016-1 (4) 2.87% Both 4/2018-2/2020 280 318 HFLF Series 2017-1 (4) 2.46% Both 6/2018-5/2020 500 500 896 963 Vehicle Debt - Other U.S. Vehicle RCF 4.32% Floating 6/2021 133 186 European Revolving Credit Facility 2.95% Floating 3/2020 123 184 European Vehicle Notes (3) 4.82% Fixed 1/2019–3/2023 1,416 773 European Securitization (2) 1.70% Floating 3/2020 366 367 Canadian Securitization (2) 2.98% Floating 3/2020 209 237 Australian Securitization (2) 3.45% Floating 3/2020 146 155 New Zealand RCF 4.60% Floating 3/2020 43 42 U.K. Financing Facility 2.86% Floating 2/2021 268 251 Other Vehicle Debt 3.92% Floating 4/2018-7/2022 54 51 2,758 2,246 Unamortized Debt Issuance Costs and Net (Discount) Premium (53 ) (40 ) Total Vehicle Debt 12,379 10,431 Total Debt $ 16,811 $ 14,865 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 March 31, 2018 December 31, 2017 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 $ 2,500 $ 2,500 (2) Maturity reference is to the earlier "expected final maturity date" as opposed to the subsequent "legal final maturity date." The expected final maturity date is the date by which Hertz and investors in the relevant indebtedness expect the outstanding principal of the relevant indebtedness to be repaid in full. The legal final maturity date is the date on which the outstanding principal of the relevant indebtedness is legally due and payable in full. (3) 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 1.23 to 1 and 1.19 to 1 as of March 31, 2018 and December 31, 2017 , 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 March 31, 2018 December 31, 2017 4.375% Senior Notes due January 2019 $ 523 $ 505 4.125% Senior Notes due October 2021 277 268 5.50% Senior Notes due March 2023 616 — $ 1,416 $ 773 (4) 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 April 2018. 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 March 31, 2018 As of December 31, 2017 (In millions) Nominal Unpaid Principal Balance Aggregate Fair Value Nominal Unpaid Principal Balance Aggregate Fair Value Non-vehicle Debt $ 4,472 $ 4,315 $ 4,476 $ 4,438 Vehicle Debt 12,432 12,405 10,471 10,456 Total $ 16,904 $ 16,720 $ 14,947 $ 14,894 |
Schedule of facilities available for the use of the company and its subsidiaries | The following facilities were available to the Company as of March 31, 2018 , and are presented net of any outstanding letters of credit: (In millions) Remaining Availability Under Non-Vehicle Debt Senior RCF $ 519 $ 519 Letter of Credit Facility — — Total Non-Vehicle Debt 519 519 Vehicle Debt U.S. Vehicle RCF — — HVF II U.S. Vehicle Variable Funding Notes 757 — HFLF Variable Funding Notes 26 1 European Revolving Credit Facility 416 — European Securitization 200 — Canadian Securitization 62 — Australian Securitization 46 — U.K. Financing Facility 84 1 New Zealand RCF — — Total Vehicle Debt 1,591 2 Total $ 2,110 $ 521 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table presents revenues from contracts with customers by reportable segment and disaggregated by product/service and type of location and customer: Three Months Ending March 31, 2018 (In millions) U.S. Rental Car International Rental Car All Other Operations Consolidated Vehicle rental and rental related: Airport $ 982 $ 251 $ — $ 1,233 Off airport 412 185 — 597 Total vehicle rental and rental related 1,394 436 — 1,830 Other: Licensee revenue 6 32 — 38 Ancillary retail vehicle sales 26 — — 26 Fleet management — — 12 12 Total other 32 32 12 76 Total revenue from contracts with customers $ 1,426 $ 468 $ 12 $ 1,906 |
Earnings (Loss) Per Share - H25
Earnings (Loss) Per Share - Hertz Global (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the computation of basic and diluted earnings (loss) per share: Three Months Ended (In millions, except per share data) 2018 2017 Basic and diluted earnings (loss) per share: Numerator: Net income (loss), basic and diluted $ (202 ) $ (223 ) Denominator: Basic weighted average common shares 83 83 Dilutive stock options, RSUs, PSUs and conversion shares — — Weighted average shares used to calculate diluted earnings per share 83 83 Antidilutive stock options, RSUs, PSUs and conversion shares 3 2 Earnings (loss) per share: Basic earnings (loss) per share $ (2.43 ) $ (2.69 ) Diluted earnings (loss) per share $ (2.43 ) $ (2.69 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Cash, Cash Equivalents and Investments | The following table summarizes the ending balances of the Company's cash equivalents, restricted cash equivalents and investments: March 31, 2018 December 31, 2017 (In millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Money market funds and time deposits $ 790 $ — $ — $ 790 $ 634 $ — $ — $ 634 Equity securities 23 — — 23 — — — — |
Components of debt | The Company's debt, including its available credit facilities, consists of the following ($ in millions): Facility Weighted Average Interest Rate Fixed or Maturity March 31, December 31, Non-Vehicle Debt Senior Term Loan 4.63% Floating 6/2023 $ 684 $ 688 Senior RCF N/A Floating 6/2021 — — Senior Notes (1) 6.13% Fixed 10/2020-10/2024 2,500 2,500 Senior Second Priority Secured Notes 7.63% Fixed 6/2022 1,250 1,250 Promissory Notes 7.00% Fixed 1/2028 27 27 Other Non-Vehicle Debt 1.92% Fixed Various 11 11 Unamortized Debt Issuance Costs and Net (Discount) Premium (40 ) (42 ) Total Non-Vehicle Debt 4,432 4,434 Vehicle Debt HVF U.S. Vehicle Medium Term Notes HVF Series 2010-1 (2) N/A N/A N/A — 39 HVF Series 2013-1 (2) 1.91% Fixed 8/2018 521 625 521 664 HVF II U.S. ABS Program HVF II U.S. Vehicle Variable Funding Notes HVF II Series 2013-A (2) 3.20% Floating 3/2020 2,590 1,970 HVF II Series 2013-B (2) 3.11% Floating 3/2020 68 123 2,658 2,093 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) 2.45% Fixed 9/2018 265 265 HVF II Series 2015-3 (2) 3.10% Fixed 9/2020 371 371 HVF II Series 2016-1 (2) 2.89% Fixed 3/2019 466 466 HVF II Series 2016-2 (2) 3.41% Fixed 3/2021 595 595 HVF II Series 2016-3 (2) 2.72% Fixed 7/2019 424 424 HVF II Series 2016-4 (2) 3.09% Fixed 7/2021 424 424 HVF II Series 2017-1 (2) 3.38% Fixed 10/2020 450 450 HVF II Series 2017-2 (2) 3.57% Fixed 10/2022 350 350 HVF II Series 2018-1 (2) 3.41% Fixed 2/2023 1,000 — 5,125 4,125 Donlen ABS Program HFLF Variable Funding Notes HFLF Series 2013-2 (2) 2.59% Floating 3/2020 474 380 474 380 Facility Weighted Average Interest Rate Fixed or Maturity March 31, December 31, HFLF Medium Term Notes HFLF Series 2015-1 (4) 2.57% Floating 4/2018-5/2019 116 145 HFLF Series 2016-1 (4) 2.87% Both 4/2018-2/2020 280 318 HFLF Series 2017-1 (4) 2.46% Both 6/2018-5/2020 500 500 896 963 Vehicle Debt - Other U.S. Vehicle RCF 4.32% Floating 6/2021 133 186 European Revolving Credit Facility 2.95% Floating 3/2020 123 184 European Vehicle Notes (3) 4.82% Fixed 1/2019–3/2023 1,416 773 European Securitization (2) 1.70% Floating 3/2020 366 367 Canadian Securitization (2) 2.98% Floating 3/2020 209 237 Australian Securitization (2) 3.45% Floating 3/2020 146 155 New Zealand RCF 4.60% Floating 3/2020 43 42 U.K. Financing Facility 2.86% Floating 2/2021 268 251 Other Vehicle Debt 3.92% Floating 4/2018-7/2022 54 51 2,758 2,246 Unamortized Debt Issuance Costs and Net (Discount) Premium (53 ) (40 ) Total Vehicle Debt 12,379 10,431 Total Debt $ 16,811 $ 14,865 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 March 31, 2018 December 31, 2017 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 $ 2,500 $ 2,500 (2) Maturity reference is to the earlier "expected final maturity date" as opposed to the subsequent "legal final maturity date." The expected final maturity date is the date by which Hertz and investors in the relevant indebtedness expect the outstanding principal of the relevant indebtedness to be repaid in full. The legal final maturity date is the date on which the outstanding principal of the relevant indebtedness is legally due and payable in full. (3) 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 1.23 to 1 and 1.19 to 1 as of March 31, 2018 and December 31, 2017 , 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 March 31, 2018 December 31, 2017 4.375% Senior Notes due January 2019 $ 523 $ 505 4.125% Senior Notes due October 2021 277 268 5.50% Senior Notes due March 2023 616 — $ 1,416 $ 773 (4) 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 April 2018. 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 March 31, 2018 As of December 31, 2017 (In millions) Nominal Unpaid Principal Balance Aggregate Fair Value Nominal Unpaid Principal Balance Aggregate Fair Value Non-vehicle Debt $ 4,472 $ 4,315 $ 4,476 $ 4,438 Vehicle Debt 12,432 12,405 10,471 10,456 Total $ 16,904 $ 16,720 $ 14,947 $ 14,894 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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 pre-tax income (loss), the segment measure of profitability. Three Months Ended (In millions) 2018 2017 Revenues U.S. Rental Car $ 1,426 $ 1,353 International Rental Car 468 411 All Other Operations 169 152 Total Hertz Global and Hertz $ 2,063 $ 1,916 Depreciation of revenue earning vehicles and lease charges, net U.S. Rental Car $ 434 $ 499 International Rental Car 102 85 All Other Operations 125 117 Total Hertz Global and Hertz $ 661 $ 701 Adjusted pre-tax income (loss) (a) U.S. Rental Car $ (48 ) $ (116 ) International Rental Car (6 ) (4 ) All Other Operations 22 21 Corporate (143 ) (114 ) Total Hertz Global (175 ) (213 ) Corporate - Hertz 1 1 Total Hertz $ (174 ) $ (212 ) (In millions) March 31, 2018 December 31, 2017 Total Assets U.S. Rental Car $ 14,184 $ 12,785 International Rental Car 4,885 3,971 All Other Operations 1,755 1,700 Corporate 1,497 1,602 Total Hertz Global and Hertz $ 22,321 $ 20,058 (a) Adjusted pre-tax income (loss), the Company's segment profitability measure, is calculated as income (loss) 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 and premiums, goodwill, intangible and tangible asset impairments and write downs, information technology and finance transformation costs and certain other miscellaneous or non-recurring items. Reconciliations of adjusted pre-tax income (loss) by segment to consolidated amounts are summarized below. Hertz Global Three Months Ended (In millions) 2018 2017 Adjusted pre-tax income (loss): U.S. Rental Car $ (48 ) $ (116 ) International Rental Car (6 ) (4 ) All Other Operations 22 21 Total reportable segments (32 ) (99 ) Corporate (1) (143 ) (114 ) Adjusted pre-tax income (loss) (175 ) (213 ) Adjustments: Acquisition accounting (2) (15 ) (16 ) Debt-related charges (3) (16 ) (10 ) Restructuring and restructuring related charges (4) (4 ) (8 ) Impairment charges and asset write-downs (5) — (30 ) Information technology and finance transformation costs (6) (23 ) (19 ) Other (7) 2 2 Income (loss) before income taxes $ (231 ) $ (294 ) Hertz Three Months Ended (In millions) 2018 2017 Adjusted pre-tax income (loss): U.S. Rental Car $ (48 ) $ (116 ) International Rental Car (6 ) (4 ) All Other Operations 22 21 Total reportable segments (32 ) (99 ) Corporate (1) (142 ) (113 ) Adjusted pre-tax income (loss) (174 ) (212 ) Adjustments: Acquisition accounting (2) (15 ) (16 ) Debt-related charges (3) (16 ) (10 ) Restructuring and restructuring related charges (4) (4 ) (8 ) Impairment charges and asset write-downs (5) — (30 ) Information technology and finance transformation costs (6) (23 ) (19 ) Other (7) 2 2 Income (loss) before income taxes $ (230 ) $ (293 ) (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) Primarily represents debt-related charges relating to the amortization of deferred financing costs and debt discounts and premiums. (4) Represents charges incurred under restructuring actions as defined in U.S. GAAP, excluding impairments and asset write-downs, which are shown separately in the table. Also includes restructuring related 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. (5) In 2017, represents an impairment of $30 million related to an equity method investment. (6) Represents costs associated with the Company’s information technology and finance transformation programs, both of which are multi-year initiatives to upgrade and modernize the Company’s systems and processes. (7) Represents miscellaneous or non-recurring items |
Guarantor and Non-Guarantor C28
Guarantor and Non-Guarantor Condensed Consolidating Financial Information - Hertz (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Guarantor and Non-Guarantor Condensed Consolidating Financial Statements Disclosure [Abstract] | |
Condensed Balance Sheet | THE HERTZ CORPORATION CONDENSED CONSOLIDATING BALANCE SHEET March 31, 2018 (In millions) Parent (The Hertz Corporation) Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations The Hertz Corporation & Subsidiaries ASSETS Cash and cash equivalents $ 603 $ 12 $ 431 $ — $ 1,046 Restricted cash and cash equivalents 87 8 799 — 894 Total cash, cash equivalents, restricted cash and restricted cash equivalents 690 20 1,230 — 1,940 Receivables, net of allowance 165 166 1,001 — 1,332 Due from affiliates 3,437 4,793 8,634 (16,864 ) — Prepaid expenses and other assets 4,313 36 316 (3,555 ) 1,110 Revenue earning vehicles, net 388 4 12,432 — 12,824 Property and equipment, net 623 60 144 — 827 Investment in subsidiaries, net 7,496 1,270 — (8,766 ) — Other intangible assets, net 117 3,078 9 — 3,204 Goodwill 102 943 39 — 1,084 Total assets $ 17,331 $ 10,370 $ 23,805 $ (29,185 ) $ 22,321 LIABILITIES AND STOCKHOLDER'S EQUITY Due to affiliates $ 10,357 $ 2,229 $ 4,278 $ (16,864 ) $ — Accounts payable 425 112 921 — 1,458 Accrued liabilities 607 72 493 — 1,172 Accrued taxes, net 77 20 2,299 (2,233 ) 163 Debt 4,564 — 12,247 — 16,811 Public liability and property damage 168 38 232 — 438 Deferred income taxes, net — 1,465 998 (1,322 ) 1,141 Total liabilities 16,198 3,936 21,468 (20,419 ) 21,183 Stockholder's equity: Total stockholder's equity attributable to Hertz 1,133 6,434 2,332 (8,766 ) 1,133 Non-controlling interest — — 5 — 5 Total stockholder's equity 1,133 6,434 2,337 (8,766 ) 1,138 Total liabilities and stockholder's equity $ 17,331 $ 10,370 $ 23,805 $ (29,185 ) $ 22,321 THE HERTZ CORPORATION CONDENSED CONSOLIDATING BALANCE SHEET December 31, 2017 (In millions) Parent (The Hertz Corporation) Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations The Hertz Corporation & Subsidiaries ASSETS Cash and cash equivalents $ 686 $ 9 $ 377 $ — $ 1,072 Restricted cash and cash equivalents 225 7 200 — 432 Total cash, cash equivalents, restricted cash and restricted cash equivalents 911 16 577 — 1,504 Receivables, net of allowance 366 167 832 — 1,365 Due from affiliates 3,373 4,567 8,794 (16,734 ) — Prepaid expenses and other assets 3,747 37 302 (3,399 ) 687 Revenue earning vehicles, net 352 2 10,982 — 11,336 Property and equipment, net 639 61 140 — 840 Investment in subsidiaries, net 7,966 1,265 — (9,231 ) — Other intangible assets, net 141 3,091 10 — 3,242 Goodwill 102 944 38 — 1,084 Total assets $ 17,597 $ 10,150 $ 21,675 $ (29,364 ) $ 20,058 LIABILITIES AND STOCKHOLDER'S EQUITY Due to affiliates $ 10,368 $ 2,156 $ 4,210 $ (16,734 ) $ — Accounts payable 375 92 479 — 946 Accrued liabilities 473 73 374 — 920 Accrued taxes, net 77 21 2,235 (2,173 ) 160 Debt 4,619 — 10,246 — 14,865 Public liability and property damage 165 37 225 — 427 Deferred income taxes, net — 1,451 995 (1,226 ) 1,220 Total liabilities 16,077 3,830 18,764 (20,133 ) 18,538 Stockholder's equity: Total stockholder's equity 1,520 6,320 2,911 (9,231 ) 1,520 Total liabilities and stockholder's equity $ 17,597 $ 10,150 $ 21,675 $ (29,364 ) $ 20,058 |
Condensed Income Statement | THE HERTZ CORPORATION CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) For the Three Months Ended March 31, 2018 (In millions) Parent (The Hertz Corporation) Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations The Hertz Corporation & Subsidiaries Total revenues $ 1,056 $ 319 $ 1,489 $ (801 ) $ 2,063 Expenses: Direct vehicle and operating 751 172 313 — 1,236 Depreciation of revenue earning vehicles and lease charges, net 766 84 612 (801 ) 661 Selling, general and administrative 161 12 61 — 234 Interest (income) expense, net 102 (33 ) 96 — 165 Other (income) expense, net (2 ) — (1 ) — (3 ) Total expenses 1,778 235 1,081 (801 ) 2,293 Income (loss) before income taxes and equity in earnings (losses) of subsidiaries (722 ) 84 408 — (230 ) Income tax (provision) benefit 122 (14 ) (79 ) — 29 Equity in earnings (losses) of subsidiaries, net of tax 399 25 — (424 ) — Net income (loss) (201 ) 95 329 (424 ) (201 ) Other comprehensive income (loss), net of tax (3 ) (2 ) (3 ) 5 (3 ) Comprehensive income (loss) $ (204 ) $ 93 $ 326 $ (419 ) $ (204 ) THE HERTZ CORPORATION CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) For the Three Months Ended March 31, 2017 (In millions) Parent (The Hertz Corporation) Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations The Hertz Corporation & Subsidiaries Total revenues $ 991 $ 307 $ 1,377 $ (759 ) $ 1,916 Expenses: Direct vehicle and operating 688 169 275 — 1,132 Depreciation of revenue earning vehicles and lease charges, net 737 102 621 (759 ) 701 Selling, general and administrative 150 11 59 — 220 Interest (income) expense, net 82 (22 ) 69 — 129 Other (income) expense, net 33 — (6 ) — 27 Total expenses 1,690 260 1,018 (759 ) 2,209 Income (loss) before income taxes and equity in earnings (losses) of subsidiaries (699 ) 47 359 — (293 ) Income tax (provision) benefit 214 (15 ) (128 ) — 71 Equity in earnings (losses) of subsidiaries, net of tax 263 32 — (295 ) — Net income (loss) (222 ) 64 231 (295 ) (222 ) Other comprehensive income (loss), net of tax 13 — 12 (12 ) 13 Comprehensive income (loss) $ (209 ) $ 64 $ 243 $ (307 ) $ (209 ) |
Condensed Cash Flow Statement | THE HERTZ CORPORATION CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the Three Months Ended March 31, 2018 (In millions) Parent (The Hertz Corporation) Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations The Hertz Corporation & Subsidiaries Net cash provided by (used in) operating activities $ (221 ) $ 7 $ 957 $ (341 ) $ 402 Cash flows from investing activities: Revenue earning vehicles expenditures (129 ) — (3,436 ) — (3,565 ) Proceeds from disposal of revenue earning vehicles 48 — 1,734 — 1,782 Capital asset expenditures, non-vehicle (28 ) (3 ) (13 ) — (44 ) Proceeds from disposal of property and other equipment — — 4 — 4 Other (24 ) — (3 ) — (27 ) Capital contributions to subsidiaries (877 ) — — 877 — Return of capital from subsidiaries 1,307 — — (1,307 ) — Loan to Parent/Guarantor from Non-Guarantor — — 235 (235 ) — Net cash provided by (used in) investing activities 297 (3 ) (1,479 ) (665 ) (1,850 ) Cash flows from financing activities: Proceeds from issuance of vehicle debt 554 — 4,627 — 5,181 Repayments of vehicle debt (607 ) — (2,676 ) — (3,283 ) Proceeds from issuance of non-vehicle debt 127 — — — 127 Repayments of non-vehicle debt (131 ) — — — (131 ) Payment of financing costs (1 ) — (18 ) — (19 ) Advances to Hertz Holdings (4 ) — — — (4 ) Other — — 5 — 5 Capital contributions received from parent — — 877 (877 ) — Payment of dividends and return of capital — — (1,648 ) 1,648 — Loan to Parent/Guarantor from Non-Guarantor (235 ) — — 235 — Net cash provided by (used in) financing activities (297 ) — 1,167 1,006 1,876 Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents — — 8 — 8 Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents during the period (221 ) 4 653 — 436 Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period 911 16 577 — 1,504 Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period $ 690 $ 20 $ 1,230 $ — $ 1,940 THE HERTZ CORPORATION CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the Three Months Ended March 31, 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 $ (727 ) $ 5 $ 1,488 $ (280 ) $ 486 Cash flows from investing activities: Revenue earning vehicles expenditures (89 ) (1 ) (2,747 ) — (2,837 ) Proceeds from disposal of revenue earning vehicles 49 — 1,886 — 1,935 Capital asset expenditures, non-vehicle (29 ) (3 ) (9 ) — (41 ) Proceeds from disposal of property and other equipment 5 — 2 — 7 Other — — 9 — 9 Capital contributions to subsidiaries (528 ) — — 528 — Return of capital from subsidiaries 1,016 — — (1,016 ) — Loan to Parent/Guarantor from Non-Guarantor — — (316 ) 316 — Net cash provided by (used in) investing activities 424 (4 ) (1,175 ) (172 ) (927 ) Cash flows from financing activities: Proceeds from issuance of vehicle debt 276 — 1,822 — 2,098 Repayments of vehicle debt (276 ) — (1,416 ) — (1,692 ) Proceeds from issuance of non-vehicle debt 100 — — — 100 Repayments of non-vehicle debt (102 ) — — — (102 ) Payment of financing costs (5 ) — (7 ) — (12 ) Advances to Hertz Holdings (2 ) — — — (2 ) Capital contributions received from parent — — 528 (528 ) — Payment of dividends and return of capital — — (1,296 ) 1,296 — Loan to Parent/Guarantor from Non-Guarantor 316 — — (316 ) — Net cash provided by (used in) financing activities 307 — (369 ) 452 390 Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents (1 ) — 9 — 8 Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents during the period 3 1 (47 ) — (43 ) Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period 511 17 566 — 1,094 Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period $ 514 $ 18 $ 519 $ — $ 1,051 |
Basis of Presentation and Rec29
Basis of Presentation and Recently Issued Accounting Pronouncements (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Jan. 01, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Direct vehicle and operating | $ 1,236 | $ 1,132 | |
Revenue earning vehicles expenditures | 3,565 | 2,837 | |
Proceeds from disposal of revenue earning vehicles | (1,782) | (1,935) | |
Purchases of revenue earning vehicles included in accounts payable and accrued liabilities, net of incentives | $ 613 | 437 | |
Vehicles | Restatement Adjustment | Other Immaterial Errors | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Direct vehicle and operating | (25) | ||
Proceeds from disposal of revenue earning vehicles | 25 | ||
Accounts Payable | Non-vehicle | Restatement Adjustment | Other Immaterial Errors | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Net cash provided by operating activities | 13 | ||
Net cash used in investing activities | 13 | ||
Purchases of revenue earning vehicles included in accounts payable and accrued liabilities, net of incentives | $ 13 | ||
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Other accrued liabilities | $ 13 |
Basis of Presentation and Rec30
Basis of Presentation and Recently Issued Accounting Pronouncements (Recent Issued Accounting Pronouncements) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Jan. 01, 2018 | Dec. 31, 2017 | |
Balance Sheet Related Disclosures [Abstract] | ||||
Accrued liabilities | $ 1,172 | $ 1,160 | $ 920 | |
Deferred income taxes, net | 1,141 | 1,169 | 1,220 | |
Total liabilities | 21,183 | 18,727 | 18,538 | |
Accumulated deficit | (897) | (695) | (506) | |
Total equity | 1,138 | 1,331 | 1,520 | |
Total liabilities and equity | 22,321 | 20,058 | 20,058 | |
Income Statement Related Disclosures [Abstract] | ||||
Worldwide vehicle rental | 1,894 | $ 1,764 | ||
Selling, general and administrative | 234 | 220 | ||
Adjustments: | (231) | (294) | ||
Income tax (provision) benefit | 29 | 71 | ||
Net income (loss) | $ (202) | $ (223) | ||
Diluted earnings (loss) per share (in dollars per share) | $ (2.43) | $ (2.69) | ||
Basic earnings (loss) per share (in dollars per share) | $ (2.43) | $ (2.69) | ||
Cash Flow Related Items [Abstract] | ||||
Net cash provided by (used in) financing activities | $ 1,877 | $ 391 | ||
Net cash provided by (used in) operating activities | 401 | 485 | ||
Net Cash Provided by (Used in) Investing Activities, Continuing Operations | (1,850) | (927) | ||
Cash and cash equivalents at beginning of period | 1,072 | |||
Cash and cash equivalents at end of period | 1,046 | |||
Accounting Standards Update 2014-09 | ||||
Balance Sheet Related Disclosures [Abstract] | ||||
Accrued liabilities | 934 | |||
Deferred income taxes, net | 1,192 | |||
Total liabilities | 20,996 | |||
Accumulated deficit | (710) | |||
Total equity | 1,325 | |||
Income Statement Related Disclosures [Abstract] | ||||
Worldwide vehicle rental | 1,891 | |||
Selling, general and administrative | 233 | |||
Adjustments: | (233) | |||
Income tax (provision) benefit | 29 | |||
Net income (loss) | $ (204) | |||
Diluted earnings (loss) per share (in dollars per share) | $ (2.46) | |||
Basic earnings (loss) per share (in dollars per share) | $ (2.46) | |||
Cash Flow Related Items [Abstract] | ||||
Net cash provided by (used in) operating activities | $ (204) | |||
Net Cash Provided by (Used in) Investing Activities, Continuing Operations | (36) | |||
Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents | 6 | |||
Accounting Standards Update 2016-09 | ||||
Cash Flow Related Items [Abstract] | ||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect | 0 | |||
Net Cash Provided by (Used in) Investing Activities, Continuing Operations | (927) | |||
Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents | 8 | |||
Cash and cash equivalents at beginning of period | 1,051 | 1,094 | ||
The Hertz Corporation | ||||
Balance Sheet Related Disclosures [Abstract] | ||||
Accrued liabilities | 1,172 | 920 | ||
Deferred income taxes, net | 1,141 | 1,220 | ||
Total liabilities | 21,183 | 18,538 | ||
Accumulated deficit | (1,876) | (1,486) | ||
Total equity | 1,138 | 1,520 | ||
Total liabilities and equity | 22,321 | 20,058 | ||
Income Statement Related Disclosures [Abstract] | ||||
Worldwide vehicle rental | 1,894 | 1,764 | ||
Selling, general and administrative | 234 | 220 | ||
Adjustments: | (230) | (293) | ||
Income tax (provision) benefit | 29 | 71 | ||
Net income (loss) | (201) | (222) | ||
Cash Flow Related Items [Abstract] | ||||
Net cash provided by (used in) financing activities | 1,876 | 390 | ||
Net cash provided by (used in) operating activities | 402 | 486 | ||
Net Cash Provided by (Used in) Investing Activities, Continuing Operations | (1,850) | (927) | ||
Cash and cash equivalents at beginning of period | 1,072 | |||
Cash and cash equivalents at end of period | 1,046 | |||
The Hertz Corporation | Accounting Standards Update 2014-09 | ||||
Balance Sheet Related Disclosures [Abstract] | ||||
Accrued liabilities | 934 | 1,160 | ||
Deferred income taxes, net | 1,192 | 1,169 | ||
Total liabilities | 20,996 | 18,727 | ||
Accumulated deficit | (1,689) | (1,675) | ||
Total equity | 1,325 | 1,331 | ||
Total liabilities and equity | 20,058 | |||
Income Statement Related Disclosures [Abstract] | ||||
Worldwide vehicle rental | 1,891 | |||
Selling, general and administrative | 233 | |||
Adjustments: | (232) | |||
Income tax (provision) benefit | 29 | |||
Net income (loss) | (203) | |||
Cash Flow Related Items [Abstract] | ||||
Net cash provided by (used in) operating activities | (203) | |||
Net Cash Provided by (Used in) Investing Activities, Continuing Operations | (36) | |||
Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents | 6 | |||
The Hertz Corporation | Accounting Standards Update 2016-09 | ||||
Cash Flow Related Items [Abstract] | ||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect | 0 | |||
Net Cash Provided by (Used in) Investing Activities, Continuing Operations | (927) | |||
Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents | 8 | |||
Cash and cash equivalents at beginning of period | 1,051 | 1,094 | ||
Calculated under Revenue Guidance in Effect before Topic 606 | ||||
Balance Sheet Related Disclosures [Abstract] | ||||
Accrued liabilities | 920 | |||
Deferred income taxes, net | 1,220 | |||
Total liabilities | 18,538 | |||
Accumulated deficit | (506) | |||
Total equity | 1,520 | |||
Total liabilities and equity | 20,058 | |||
Calculated under Revenue Guidance in Effect before Topic 606 | Accounting Standards Update 2014-09 | ||||
Balance Sheet Related Disclosures [Abstract] | ||||
Accrued liabilities | 1,172 | |||
Deferred income taxes, net | 1,141 | |||
Total liabilities | 21,183 | |||
Accumulated deficit | (897) | |||
Total equity | 1,138 | |||
Income Statement Related Disclosures [Abstract] | ||||
Worldwide vehicle rental | 1,894 | |||
Selling, general and administrative | 234 | |||
Adjustments: | (231) | |||
Income tax (provision) benefit | 29 | |||
Net income (loss) | $ (202) | |||
Diluted earnings (loss) per share (in dollars per share) | $ (2.43) | |||
Basic earnings (loss) per share (in dollars per share) | $ (2.43) | |||
Cash Flow Related Items [Abstract] | ||||
Net cash provided by (used in) operating activities | $ (202) | |||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect | 14 | |||
Net Cash Provided by (Used in) Investing Activities, Continuing Operations | (36) | (913) | ||
Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents | 4 | 6 | ||
Cash and cash equivalents at beginning of period | 785 | 816 | ||
Calculated under Revenue Guidance in Effect before Topic 606 | The Hertz Corporation | ||||
Balance Sheet Related Disclosures [Abstract] | ||||
Total equity | 1,520 | |||
Calculated under Revenue Guidance in Effect before Topic 606 | The Hertz Corporation | Accounting Standards Update 2014-09 | ||||
Balance Sheet Related Disclosures [Abstract] | ||||
Accrued liabilities | 1,172 | 920 | ||
Deferred income taxes, net | 1,141 | 1,220 | ||
Total liabilities | 21,183 | 18,538 | ||
Accumulated deficit | (1,876) | (1,486) | ||
Total equity | 1,138 | |||
Total liabilities and equity | $ 20,058 | |||
Income Statement Related Disclosures [Abstract] | ||||
Worldwide vehicle rental | 1,894 | |||
Selling, general and administrative | 234 | |||
Adjustments: | (230) | |||
Income tax (provision) benefit | 29 | |||
Net income (loss) | (201) | |||
Cash Flow Related Items [Abstract] | ||||
Net cash provided by (used in) operating activities | (201) | |||
Net Cash Provided by (Used in) Investing Activities, Continuing Operations | (36) | |||
Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents | 4 | |||
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | ||||
Balance Sheet Related Disclosures [Abstract] | ||||
Accrued liabilities | 238 | 240 | ||
Deferred income taxes, net | (51) | (51) | ||
Total liabilities | 187 | 189 | ||
Accumulated deficit | (187) | (189) | ||
Total equity | (187) | (189) | ||
Total liabilities and equity | 0 | |||
Income Statement Related Disclosures [Abstract] | ||||
Worldwide vehicle rental | 3 | |||
Selling, general and administrative | 1 | |||
Adjustments: | 2 | |||
Income tax (provision) benefit | 0 | |||
Net income (loss) | $ 2 | |||
Diluted earnings (loss) per share (in dollars per share) | $ 0.03 | |||
Basic earnings (loss) per share (in dollars per share) | $ 0.03 | |||
Cash Flow Related Items [Abstract] | ||||
Net cash provided by (used in) operating activities | $ 2 | |||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect | (14) | |||
Net Cash Provided by (Used in) Investing Activities, Continuing Operations | 0 | (14) | ||
Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents | (2) | 2 | ||
Cash and cash equivalents at beginning of period | 266 | $ 278 | ||
Difference between Revenue Guidance in Effect before and after Topic 606 | The Hertz Corporation | Accounting Standards Update 2014-09 | ||||
Balance Sheet Related Disclosures [Abstract] | ||||
Accrued liabilities | 238 | 240 | ||
Deferred income taxes, net | (51) | (51) | ||
Total liabilities | 187 | 189 | ||
Accumulated deficit | (187) | (189) | ||
Total equity | (187) | (189) | ||
Total liabilities and equity | $ 0 | |||
Income Statement Related Disclosures [Abstract] | ||||
Worldwide vehicle rental | 3 | |||
Selling, general and administrative | 1 | |||
Adjustments: | 2 | |||
Income tax (provision) benefit | 0 | |||
Net income (loss) | 2 | |||
Cash Flow Related Items [Abstract] | ||||
Net cash provided by (used in) operating activities | 2 | |||
Net Cash Provided by (Used in) Investing Activities, Continuing Operations | 0 | |||
Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents | $ (2) |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Divestiture) (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Impairment charges and asset write-downs | $ 0 | $ 30 | |
Discontinued Operations, Held-for-sale | Other Income (Expense) | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Impairment charges and asset write-downs | $ 30 |
Revenue Earning Vehicles (Detai
Revenue Earning Vehicles (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Revenue earning vehicles | $ 15,680 | $ 14,209 | |
Less: Accumulated depreciation | (3,147) | (3,123) | |
Subtotal | 12,533 | 11,086 | |
Revenue earning vehicles held for sale, net | 291 | 250 | |
Total revenue earning vehicles, net | 12,824 | $ 11,336 | |
Depreciation of revenue earning vehicles | 594 | $ 605 | |
(Gain) loss on disposal of revenue earning equipment | 47 | 79 | |
Rents paid for vehicles leased | 20 | 17 | |
Depreciation of revenue earning equipment and lease charges, net | 661 | 701 | |
U.S. Rental Car | |||
Property, Plant and Equipment [Line Items] | |||
(Gain) loss on disposal of revenue earning equipment | 45 | 78 | |
Other cost of services | 36 | 30 | |
International Rental Car | |||
Property, Plant and Equipment [Line Items] | |||
(Gain) loss on disposal of revenue earning equipment | $ 2 | $ 1 |
Revenue Earning Vehicles (Depre
Revenue Earning Vehicles (Depreciation Rates) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenue earning equipment | ||
Depreciation rate changes | $ 11 | $ 26 |
U.S. Rental Car | ||
Revenue earning equipment | ||
Depreciation rate changes | 9 | 26 |
International Rental Car | ||
Revenue earning equipment | ||
Depreciation rate changes | $ 2 | $ 0 |
Debt (Schedule of Debt) (Detail
Debt (Schedule of Debt) (Details) $ in Millions | 1 Months Ended | |||
Mar. 31, 2018USD ($) | Mar. 31, 2018EUR (€)€ / $ | Mar. 31, 2018USD ($)€ / $ | Dec. 31, 2017USD ($)€ / $ | |
Debt Instrument [Line Items] | ||||
Debt: | $ 16,811 | $ 14,865 | ||
Non-Vehicle Debt | ||||
Debt Instrument [Line Items] | ||||
Unamortized Net Discount | (40) | (42) | ||
Debt: | $ 4,432 | 4,434 | ||
Senior Term Loan | ||||
Debt Instrument [Line Items] | ||||
Average interest rate (as a percent) | 4.63% | 4.63% | ||
Outstanding principal | $ 684 | 688 | ||
Senior RCF | ||||
Debt Instrument [Line Items] | ||||
Outstanding principal | $ 0 | 0 | ||
Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Average interest rate (as a percent) | 6.13% | 6.13% | ||
Outstanding principal | $ 2,500 | 2,500 | ||
5.875% Senior Notes due October 2020 | ||||
Debt Instrument [Line Items] | ||||
Outstanding principal | $ 700 | 700 | ||
Interest rate | 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% | ||
6.25% Senior Notes due October 2022 | ||||
Debt Instrument [Line Items] | ||||
Outstanding principal | $ 500 | 500 | ||
Interest rate | 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% | ||
Senior Second Priority Secured Notes | ||||
Debt Instrument [Line Items] | ||||
Average interest rate (as a percent) | 7.63% | 7.63% | ||
Outstanding principal | $ 1,250 | 1,250 | ||
Promissory Notes | ||||
Debt Instrument [Line Items] | ||||
Average interest rate (as a percent) | 7.00% | 7.00% | ||
Outstanding principal | $ 27 | 27 | ||
Other Non-Vehicle Debt | ||||
Debt Instrument [Line Items] | ||||
Average interest rate (as a percent) | 1.92% | 1.92% | ||
Outstanding principal | $ 11 | 11 | ||
Vehicle Debt | ||||
Debt Instrument [Line Items] | ||||
Unamortized Net Discount | (53) | (40) | ||
Debt: | 12,379 | 10,431 | ||
U.S. Fleet Medium Term Notes | ||||
Debt Instrument [Line Items] | ||||
Outstanding principal | 521 | 664 | ||
U.S. Fleet Medium Term Notes Series 2010-1 Notes | ||||
Debt Instrument [Line Items] | ||||
Outstanding principal | $ 0 | 39 | ||
U.S. Fleet Medium Term Notes Series 2013-1 Notes | ||||
Debt Instrument [Line Items] | ||||
Average interest rate (as a percent) | 1.91% | 1.91% | ||
Outstanding principal | $ 521 | 625 | ||
Total | ||||
Debt Instrument [Line Items] | ||||
Outstanding principal | $ 2,658 | 2,093 | ||
HVF II Series 2013-A | ||||
Debt Instrument [Line Items] | ||||
Average interest rate (as a percent) | 3.20% | 3.20% | ||
Outstanding principal | $ 2,590 | 1,970 | ||
HVF II Series 2013-B | ||||
Debt Instrument [Line Items] | ||||
Average interest rate (as a percent) | 3.11% | 3.11% | ||
Outstanding principal | $ 68 | 123 | ||
HVF II Series 2017-A | ||||
Debt Instrument [Line Items] | ||||
Decrease to borrowing capacity of revolving credit facility | $ (500) | |||
HVF II U.S. Fleet Variable Medium Term Notes | ||||
Debt Instrument [Line Items] | ||||
Outstanding principal | $ 5,125 | 4,125 | ||
U.S. Fleet Medium Term Notes 2015 Series 1 | ||||
Debt Instrument [Line Items] | ||||
Average interest rate (as a percent) | 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) | 2.45% | 2.45% | ||
Outstanding principal | $ 265 | 265 | ||
U.S. Fleet Medium Term Notes 2015 Series 3 | ||||
Debt Instrument [Line Items] | ||||
Average interest rate (as a percent) | 3.10% | 3.10% | ||
Outstanding principal | $ 371 | 371 | ||
U.S. Fleet Medium Term Notes 2016 Series 1 | ||||
Debt Instrument [Line Items] | ||||
Average interest rate (as a percent) | 2.89% | 2.89% | ||
Outstanding principal | $ 466 | 466 | ||
U.S. Fleet Medium Term Notes 2016 Series 2 | ||||
Debt Instrument [Line Items] | ||||
Average interest rate (as a percent) | 3.41% | 3.41% | ||
Outstanding principal | $ 595 | 595 | ||
U.S. Fleet Medium Term Notes 2016 Series 3 | ||||
Debt Instrument [Line Items] | ||||
Average interest rate (as a percent) | 2.72% | 2.72% | ||
Outstanding principal | $ 424 | 424 | ||
U.S. Fleet Medium Term Notes 2016 Series 4 | ||||
Debt Instrument [Line Items] | ||||
Average interest rate (as a percent) | 3.09% | 3.09% | ||
Outstanding principal | $ 424 | 424 | ||
U.S. Fleet Medium Term Notes 2017 Series 1 | ||||
Debt Instrument [Line Items] | ||||
Average interest rate (as a percent) | 3.38% | 3.38% | ||
Outstanding principal | $ 450 | 450 | ||
U.S. Fleet Medium Term Notes 2017 Series 2 | ||||
Debt Instrument [Line Items] | ||||
Average interest rate (as a percent) | 3.57% | 3.57% | ||
Outstanding principal | $ 350 | 350 | ||
U.S. Fleet Medium Term Notes 2018 Series 1 | ||||
Debt Instrument [Line Items] | ||||
Average interest rate (as a percent) | 3.41% | 3.41% | ||
Outstanding principal | $ 1,000 | 0 | ||
Donlen ABS Program | ||||
Debt Instrument [Line Items] | ||||
Outstanding principal | $ 474 | 380 | ||
HFLF Series 2013-2 Notes | ||||
Debt Instrument [Line Items] | ||||
Average interest rate (as a percent) | 2.59% | 2.59% | ||
Outstanding principal | $ 474 | 380 | ||
HFLF Medium Term Notes | ||||
Debt Instrument [Line Items] | ||||
Outstanding principal | $ 896 | 963 | ||
HFLF Series 2015-1 | ||||
Debt Instrument [Line Items] | ||||
Average interest rate (as a percent) | 2.57% | 2.57% | ||
Outstanding principal | $ 116 | 145 | ||
HFLF Series 2016-1 | ||||
Debt Instrument [Line Items] | ||||
Average interest rate (as a percent) | 2.87% | 2.87% | ||
Outstanding principal | $ 280 | 318 | ||
HFLF Series 2017-1 | ||||
Debt Instrument [Line Items] | ||||
Average interest rate (as a percent) | 2.46% | 2.46% | ||
Outstanding principal | $ 500 | 500 | ||
Other Fleet Debt | ||||
Debt Instrument [Line Items] | ||||
Outstanding principal | $ 2,758 | 2,246 | ||
U.S. Vehicle RCF | ||||
Debt Instrument [Line Items] | ||||
Average interest rate (as a percent) | 4.32% | 4.32% | ||
Outstanding principal | $ 133 | 186 | ||
European Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Average interest rate (as a percent) | 2.95% | 2.95% | ||
Outstanding principal | $ 123 | 184 | ||
European Fleet Notes | ||||
Debt Instrument [Line Items] | ||||
Average interest rate (as a percent) | 4.82% | 4.82% | ||
Outstanding principal | $ 1,416 | $ 773 | ||
Foreign currency exchange rate (EURO to USD) | € / $ | 1.23 | 1.23 | 1.19 | |
4.375% Due January 2019 | ||||
Debt Instrument [Line Items] | ||||
Outstanding principal | $ 523 | $ 505 | ||
Interest rate | 4.375% | 4.375% | ||
Face Amount | € | € 425,000,000 | |||
4.125% Due October 2021 | ||||
Debt Instrument [Line Items] | ||||
Outstanding principal | $ 277 | 268 | ||
Interest rate | 4.125% | 4.125% | ||
Face Amount | € | € 225,000,000 | |||
European Securitization | ||||
Debt Instrument [Line Items] | ||||
Average interest rate (as a percent) | 1.70% | 1.70% | ||
Outstanding principal | $ 366 | 367 | ||
Canadian Securitization | ||||
Debt Instrument [Line Items] | ||||
Average interest rate (as a percent) | 2.98% | 2.98% | ||
Outstanding principal | $ 209 | 237 | ||
Australian Securitization | ||||
Debt Instrument [Line Items] | ||||
Average interest rate (as a percent) | 3.45% | 3.45% | ||
Outstanding principal | $ 146 | 155 | ||
New Zealand RCF | ||||
Debt Instrument [Line Items] | ||||
Average interest rate (as a percent) | 4.60% | 4.60% | ||
Outstanding principal | $ 43 | 42 | ||
UK Leveraged Financing | ||||
Debt Instrument [Line Items] | ||||
Average interest rate (as a percent) | 2.86% | 2.86% | ||
Outstanding principal | $ 268 | 251 | ||
Capitalized Leases | ||||
Debt Instrument [Line Items] | ||||
Average interest rate (as a percent) | 3.92% | 3.92% | ||
Outstanding principal | $ 54 | 51 | ||
European Fleet Notes, 5.500%, Due March 2023 | ||||
Debt Instrument [Line Items] | ||||
Outstanding principal | $ 616 | $ 0 | ||
Interest rate | 5.50% | 5.50% | ||
Face Amount | € | € 500,000,000 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) | 1 Months Ended | 3 Months Ended | |||||
Mar. 31, 2018USD ($) | Jan. 31, 2018USD ($) | Mar. 31, 2018EUR (€) | Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Debt Instrument [Line Items] | |||||||
VIE, total assets | $ 718,000,000 | $ 524,000,000 | |||||
VIE, total liabilities | 713,000,000 | 524,000,000 | |||||
Remaining capacity | 2,110,000,000 | ||||||
HFLF Medium Term Notes | |||||||
Debt Instrument [Line Items] | |||||||
Outstanding principal | 896,000,000 | 963,000,000 | |||||
Remaining capacity | 26,000,000 | ||||||
European Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Outstanding principal | 123,000,000 | 184,000,000 | |||||
Remaining capacity | 416,000,000 | ||||||
European Vehicle Notes | |||||||
Debt Instrument [Line Items] | |||||||
Outstanding principal | 1,416,000,000 | 773,000,000 | |||||
HVF II Series 2017-A Notes And HVF II Series 2017-B Notes | |||||||
Debt Instrument [Line Items] | |||||||
Decrease to borrowing capacity of revolving credit facility | $ (250,000,000) | ||||||
HVF II Series 2013 Notes | |||||||
Debt Instrument [Line Items] | |||||||
Decrease to borrowing capacity of revolving credit facility | (3,700,000,000) | ||||||
HVF II Series 2017-A | |||||||
Debt Instrument [Line Items] | |||||||
Decrease to borrowing capacity of revolving credit facility | $ 500,000,000 | ||||||
European Securitization | |||||||
Debt Instrument [Line Items] | |||||||
Outstanding principal | 366,000,000 | 367,000,000 | |||||
Remaining capacity | 200,000,000 | ||||||
UK Leveraged Financing | |||||||
Debt Instrument [Line Items] | |||||||
Outstanding principal | 268,000,000 | 251,000,000 | |||||
New Zealand RCF | |||||||
Debt Instrument [Line Items] | |||||||
Outstanding principal | 43,000,000 | 42,000,000 | |||||
Remaining capacity | 0 | ||||||
HFLF Series 2015-1 | |||||||
Debt Instrument [Line Items] | |||||||
Outstanding principal | 116,000,000 | 145,000,000 | |||||
Canadian Securitization | |||||||
Debt Instrument [Line Items] | |||||||
Outstanding principal | 209,000,000 | 237,000,000 | |||||
Remaining capacity | 62,000,000 | ||||||
Senior ABL Facility | |||||||
Debt Instrument [Line Items] | |||||||
Fixed charge coverage ratio, number of quarters | 1 year | 1 year | |||||
Remaining capacity | 519,000,000 | ||||||
Senior RCF | |||||||
Debt Instrument [Line Items] | |||||||
Outstanding standby letters of credit | 648,000,000 | ||||||
Outstanding principal | 0 | 0 | |||||
Senior Term Loan | |||||||
Debt Instrument [Line Items] | |||||||
Outstanding principal | $ 684,000,000 | 688,000,000 | |||||
5.50% Senior Notes due October 2024 | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 5.50% | 5.50% | |||||
Outstanding principal | $ 800,000,000 | 800,000,000 | |||||
U.S. Vehicle RCF | |||||||
Debt Instrument [Line Items] | |||||||
Outstanding principal | 133,000,000 | 186,000,000 | |||||
Remaining capacity | 0 | ||||||
Vehicle Debt | |||||||
Debt Instrument [Line Items] | |||||||
Remaining capacity | 1,591,000,000 | ||||||
HFLF Series 2013-2 Notes | |||||||
Debt Instrument [Line Items] | |||||||
Outstanding principal | 474,000,000 | 380,000,000 | |||||
HFLF Series 2017-1 | |||||||
Debt Instrument [Line Items] | |||||||
Outstanding principal | 500,000,000 | 500,000,000 | |||||
HFLF Series 2016-1 | |||||||
Debt Instrument [Line Items] | |||||||
Outstanding principal | $ 280,000,000 | 318,000,000 | |||||
4.125% Due October 2021 | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 4.125% | 4.125% | |||||
Face Amount | € | € 225,000,000 | ||||||
Outstanding principal | $ 277,000,000 | 268,000,000 | |||||
Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Outstanding principal | 2,500,000,000 | 2,500,000,000 | |||||
HVF II Series 2013-A | |||||||
Debt Instrument [Line Items] | |||||||
Outstanding principal | 2,590,000,000 | 1,970,000,000 | |||||
HVF II Series 2013-B | |||||||
Debt Instrument [Line Items] | |||||||
Outstanding principal | 68,000,000 | 123,000,000 | |||||
HVF II Series 2018-1 Class A, B, C and D | |||||||
Debt Instrument [Line Items] | |||||||
Outstanding principal | $ 1,100,000,000 | ||||||
HVF II Series 2018-1 Class D | |||||||
Debt Instrument [Line Items] | |||||||
Repayments of debt | $ 58,000,000 | ||||||
HFLF Series 2018-1 | |||||||
Debt Instrument [Line Items] | |||||||
Outstanding principal | $ 550,000,000 | ||||||
European Fleet Notes, 5.500%, Due March 2023 | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 5.50% | 5.50% | |||||
Face Amount | € | € 500,000,000 | ||||||
Outstanding principal | $ 616,000,000 | 0 | |||||
UK Leveraged Financing, Due January 2019 | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 437.50% | 437.50% | |||||
Letter of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Outstanding standby letters of credit | $ 661,000,000 | ||||||
Letter of Credit | Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Face Amount | 400,000,000 | ||||||
Vehicles | |||||||
Debt Instrument [Line Items] | |||||||
Proceeds from issuance of debt | $ 5,181,000,000 | $ 2,098,000,000 | |||||
Repayments of debt | 3,283,000,000 | 1,692,000,000 | |||||
Repayments of principal in next twelve months | 2,600,000,000 | ||||||
Non-vehicle | |||||||
Debt Instrument [Line Items] | |||||||
Proceeds from issuance of debt | 127,000,000 | 100,000,000 | |||||
Repayments of debt | $ 131,000,000 | $ 102,000,000 | |||||
Repayments of principal in next twelve months | 23,000,000 | ||||||
Revolving Credit Facility | European Securitization, Due October 2018 | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | € | € 438,000,000 | ||||||
Revolving Credit Facility | European Revolving Credit Facility, Due January 2019 | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | € | € 235,000,000 | ||||||
Letter of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | 400,000,000 | ||||||
International Fleet Financing No. 2 B.V. | |||||||
Debt Instrument [Line Items] | |||||||
VIE, total assets | 713,000,000 | 524,000,000 | |||||
VIE, total liabilities | $ 713,000,000 | $ 524,000,000 | |||||
Ownership percentage | 25.00% | 25.00% | |||||
Restricted Cash | European Fleet Notes, 5.500%, Due March 2023 | |||||||
Debt Instrument [Line Items] | |||||||
Proceeds from issuance of debt | € 425,000,000 | $ 523,000,000 |
Debt (Borrowing Capacity) (Deta
Debt (Borrowing Capacity) (Details) $ in Millions | Mar. 31, 2018USD ($) |
Debt Instrument [Line Items] | |
Remaining capacity | $ 2,110 |
Availability under borrowing base limitation | 521 |
Senior ABL Facility | |
Debt Instrument [Line Items] | |
Remaining capacity | 519 |
Availability under borrowing base limitation | 519 |
Letter of Credit | |
Debt Instrument [Line Items] | |
Remaining capacity | 0 |
Availability under borrowing base limitation | 0 |
Non-Vehicle Debt | |
Debt Instrument [Line Items] | |
Remaining capacity | 519 |
Availability under borrowing base limitation | 519 |
U.S. Vehicle RCF | |
Debt Instrument [Line Items] | |
Remaining capacity | 0 |
Availability under borrowing base limitation | 0 |
HVF II U.S. ABS Program | |
Debt Instrument [Line Items] | |
Remaining capacity | 757 |
Availability under borrowing base limitation | 0 |
HFLF Medium Term Notes | |
Debt Instrument [Line Items] | |
Remaining capacity | 26 |
Availability under borrowing base limitation | 1 |
European Revolving Credit Facility | |
Debt Instrument [Line Items] | |
Remaining capacity | 416 |
Availability under borrowing base limitation | 0 |
European Securitization | |
Debt Instrument [Line Items] | |
Remaining capacity | 200 |
Availability under borrowing base limitation | 0 |
Canadian Securitization | |
Debt Instrument [Line Items] | |
Remaining capacity | 62 |
Availability under borrowing base limitation | 0 |
Australian Securitization | |
Debt Instrument [Line Items] | |
Remaining capacity | 46 |
Availability under borrowing base limitation | 0 |
Capitalized Leases | |
Debt Instrument [Line Items] | |
Remaining capacity | 84 |
Availability under borrowing base limitation | 1 |
New Zealand RCF | |
Debt Instrument [Line Items] | |
Remaining capacity | 0 |
Availability under borrowing base limitation | 0 |
Vehicle Debt | |
Debt Instrument [Line Items] | |
Remaining capacity | 1,591 |
Availability under borrowing base limitation | $ 2 |
Debt (Covenant Ratios) (Details
Debt (Covenant Ratios) (Details) | Mar. 31, 2018 |
Senior Revolving Credit Facility and Letter of Credit Facility | |
Debt Instrument [Line Items] | |
Maximum consolidated leverage ratio | 3 |
Revenue Disaggregated Revenue -
Revenue Disaggregated Revenue - Products and Serives and Geographical (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Disaggregation of Revenue [Line Items] | |
Revenue from contracts with customers | $ 1,906 |
Vehicle Rental and Rental Related | |
Disaggregation of Revenue [Line Items] | |
Revenue from contracts with customers | 1,830 |
Other Revenue | |
Disaggregation of Revenue [Line Items] | |
Revenue from contracts with customers | 76 |
Licensee revenue | |
Disaggregation of Revenue [Line Items] | |
Revenue from contracts with customers | 38 |
Ancillary retail vehicle sales | |
Disaggregation of Revenue [Line Items] | |
Revenue from contracts with customers | 26 |
Fleet management | |
Disaggregation of Revenue [Line Items] | |
Revenue from contracts with customers | 12 |
Airport | |
Disaggregation of Revenue [Line Items] | |
Revenue from contracts with customers | 1,233 |
Off airport | |
Disaggregation of Revenue [Line Items] | |
Revenue from contracts with customers | 597 |
U.S. Rental Car | |
Disaggregation of Revenue [Line Items] | |
Revenue from contracts with customers | 1,426 |
U.S. Rental Car | Vehicle Rental and Rental Related | |
Disaggregation of Revenue [Line Items] | |
Revenue from contracts with customers | 1,394 |
U.S. Rental Car | Other Revenue | |
Disaggregation of Revenue [Line Items] | |
Revenue from contracts with customers | 32 |
U.S. Rental Car | Licensee revenue | |
Disaggregation of Revenue [Line Items] | |
Revenue from contracts with customers | 6 |
U.S. Rental Car | Ancillary retail vehicle sales | |
Disaggregation of Revenue [Line Items] | |
Revenue from contracts with customers | 26 |
U.S. Rental Car | Fleet management | |
Disaggregation of Revenue [Line Items] | |
Revenue from contracts with customers | 0 |
U.S. Rental Car | Airport | |
Disaggregation of Revenue [Line Items] | |
Revenue from contracts with customers | 982 |
U.S. Rental Car | Off airport | |
Disaggregation of Revenue [Line Items] | |
Revenue from contracts with customers | 412 |
International Rental Car | |
Disaggregation of Revenue [Line Items] | |
Revenue from contracts with customers | 468 |
International Rental Car | Vehicle Rental and Rental Related | |
Disaggregation of Revenue [Line Items] | |
Revenue from contracts with customers | 436 |
International Rental Car | Other Revenue | |
Disaggregation of Revenue [Line Items] | |
Revenue from contracts with customers | 32 |
International Rental Car | Licensee revenue | |
Disaggregation of Revenue [Line Items] | |
Revenue from contracts with customers | 32 |
International Rental Car | Ancillary retail vehicle sales | |
Disaggregation of Revenue [Line Items] | |
Revenue from contracts with customers | 0 |
International Rental Car | Fleet management | |
Disaggregation of Revenue [Line Items] | |
Revenue from contracts with customers | 0 |
International Rental Car | Airport | |
Disaggregation of Revenue [Line Items] | |
Revenue from contracts with customers | 251 |
International Rental Car | Off airport | |
Disaggregation of Revenue [Line Items] | |
Revenue from contracts with customers | 185 |
All Other Operations | |
Disaggregation of Revenue [Line Items] | |
Revenue from contracts with customers | 12 |
All Other Operations | Vehicle Rental and Rental Related | |
Disaggregation of Revenue [Line Items] | |
Revenue from contracts with customers | 0 |
All Other Operations | Other Revenue | |
Disaggregation of Revenue [Line Items] | |
Revenue from contracts with customers | 12 |
All Other Operations | Licensee revenue | |
Disaggregation of Revenue [Line Items] | |
Revenue from contracts with customers | 0 |
All Other Operations | Ancillary retail vehicle sales | |
Disaggregation of Revenue [Line Items] | |
Revenue from contracts with customers | 0 |
All Other Operations | Fleet management | |
Disaggregation of Revenue [Line Items] | |
Revenue from contracts with customers | 12 |
All Other Operations | Airport | |
Disaggregation of Revenue [Line Items] | |
Revenue from contracts with customers | 0 |
All Other Operations | Off airport | |
Disaggregation of Revenue [Line Items] | |
Revenue from contracts with customers | $ 0 |
Revenue Narrative (Details)
Revenue Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Jan. 01, 2018 | |
Revenue from Contract with Customer [Abstract] | ||
Contract with Customer, Customer Loyalty Program Point Balance Liability, Revenue Recognized | $ 3 | |
Loyalty points revenue recognized | 55 | |
Outstanding point balance amount | 266 | |
Contract with customer liability | $ 388 | $ 345 |
Revenue Contracted Balances (De
Revenue Contracted Balances (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Jan. 01, 2018 | |
Contract with Customer, Liability [Abstract] | ||
Contract with customer liability | $ 388 | $ 345 |
Loyalty points revenue recognized | $ 55 |
Income Tax (Provision) Benefit
Income Tax (Provision) Benefit (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Tax Contingency [Line Items] | ||
Effective tax rate (as percent) | 13.00% | 24.00% |
Income tax (provision) benefit | $ 29 | $ 71 |
The Hertz Corporation | ||
Income Tax Contingency [Line Items] | ||
Income tax (provision) benefit | $ 29 | $ 71 |
Earnings (Loss) Per Share - H42
Earnings (Loss) Per Share - Hertz Global (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Net income (loss) | $ (202) | $ (223) |
Basic weighted average common shares | 83 | 83 |
Dilutive stock options, RSUs, PSUs and conversion shares | 0 | 0 |
Weighted average shares used to calculate diluted earnings per share | 83 | 83 |
Earnings (loss) per share: | ||
Basic earnings (loss) per share (in dollars per share) | $ (2.43) | $ (2.69) |
Diluted earnings (loss) per share (in dollars per share) | $ (2.43) | $ (2.69) |
Antidilutive stock options, RSUs and PSUs | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive stock options, RSUs, PSUs and conversion shares | 3 | 2 |
Fair Value Measurements (Cash a
Fair Value Measurements (Cash and Cash Equivalents and Investments) (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Money market funds and time deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $ 790 | $ 634 |
Money market funds and time deposits | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 790 | 634 |
Money market funds and time deposits | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Money market funds and time deposits | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Equity Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 23 | 0 |
Equity Securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 23 | 0 |
Equity Securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Equity 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 | Mar. 31, 2018 | Dec. 31, 2017 |
Fair Value of Financial Instruments [Abstract] | ||
Nominal Unpaid Principal Balance | $ 16,904 | $ 14,947 |
Aggregate Fair Value | 16,720 | 14,894 |
Other Non-Vehicle Debt | ||
Fair Value of Financial Instruments [Abstract] | ||
Nominal Unpaid Principal Balance | 4,472 | 4,476 |
Aggregate Fair Value | 4,315 | 4,438 |
Vehicle Debt | ||
Fair Value of Financial Instruments [Abstract] | ||
Nominal Unpaid Principal Balance | 12,432 | 10,471 |
Aggregate Fair Value | $ 12,405 | $ 10,456 |
Contingencies and Off-Balance45
Contingencies and Off-Balance Sheet Commitments (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Commitments and Contingencies Disclosure [Abstract] | ||
Public liability and property damage | $ 438 | $ 427 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 3 Months Ended | ||||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | Jun. 30, 2017 | Jun. 30, 2016 | |
Related Party Transaction [Line Items] | |||||
Due from related parties | $ 425 | $ 425 | |||
Affiliated Entity | |||||
Related Party Transaction [Line Items] | |||||
Purchases from related party | $ 6 | $ 2 | |||
Affiliated Entity | Master Loan Agreement | |||||
Related Party Transaction [Line Items] | |||||
Due from related parties | 111 | $ 107 | |||
Affiliated Entity | Tax Related Liability | |||||
Related Party Transaction [Line Items] | |||||
Due from related parties | $ 65 | $ 65 | |||
767 Auto Leasing, LLC | Master Motor Vehicle Lease and Management Agreement | |||||
Related Party Transaction [Line Items] | |||||
Operating income or loss, percent | 25.00% |
Segment Information (Details)
Segment Information (Details) $ in Millions | 1 Months Ended | 3 Months Ended | ||
Mar. 31, 2017USD ($) | Mar. 31, 2018USD ($)segment | Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($) | |
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | ||||
Number of reportable segments | segment | 3 | |||
Revenues | $ 2,063 | $ 1,916 | ||
Depreciation of revenue earning vehicles and lease charges, net | 661 | 701 | ||
Adjusted pre-tax income (loss): | (175) | (213) | ||
Total Assets | 22,321 | $ 20,058 | ||
Adjustments: | (231) | (294) | ||
Equity method investment, other than temporary impairment | $ 30 | |||
Purchase accounting | ||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | ||||
Adjustments: | (15) | (16) | ||
Other | ||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | ||||
Adjustments: | (16) | (10) | ||
Restructuring and restructuring related charges | ||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | ||||
Adjustments: | (4) | (8) | ||
Impairment charges and asset write-downs | ||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | ||||
Adjustments: | 0 | (30) | ||
Finance and Information Technology Transformation Costs | ||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | ||||
Adjustments: | (23) | (19) | ||
Other | ||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | ||||
Adjustments: | 2 | 2 | ||
Operating Segments | ||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | ||||
Adjusted pre-tax income (loss): | (32) | (99) | ||
Operating Segments | U.S. Rental Car | ||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | ||||
Revenues | 1,426 | 1,353 | ||
Depreciation of revenue earning vehicles and lease charges, net | 434 | 499 | ||
Adjusted pre-tax income (loss): | (48) | (116) | ||
Total Assets | 14,184 | 12,785 | ||
Operating Segments | International Rental Car | ||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | ||||
Revenues | 468 | 411 | ||
Depreciation of revenue earning vehicles and lease charges, net | 102 | 85 | ||
Adjusted pre-tax income (loss): | (6) | (4) | ||
Total Assets | 4,885 | 3,971 | ||
Operating Segments | All Other Operations | ||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | ||||
Revenues | 169 | 152 | ||
Depreciation of revenue earning vehicles and lease charges, net | 125 | 117 | ||
Adjusted pre-tax income (loss): | 22 | 21 | ||
Total Assets | 1,755 | 1,700 | ||
Corporate, Non-Segment | ||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | ||||
Adjusted pre-tax income (loss): | (143) | (114) | ||
Total Assets | 1,497 | 1,602 | ||
The Hertz Corporation | ||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | ||||
Revenues | 2,063 | 1,916 | ||
Depreciation of revenue earning vehicles and lease charges, net | 661 | 701 | ||
Adjusted pre-tax income (loss): | (174) | (212) | ||
Total Assets | 22,321 | $ 20,058 | ||
Adjustments: | (230) | (293) | ||
The Hertz Corporation | Purchase accounting | ||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | ||||
Adjustments: | (15) | (16) | ||
The Hertz Corporation | Other | ||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | ||||
Adjustments: | (16) | (10) | ||
The Hertz Corporation | Restructuring and restructuring related charges | ||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | ||||
Adjustments: | (4) | (8) | ||
The Hertz Corporation | Impairment charges and asset write-downs | ||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | ||||
Adjustments: | 0 | (30) | ||
The Hertz Corporation | Finance and Information Technology Transformation Costs | ||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | ||||
Adjustments: | (23) | (19) | ||
The Hertz Corporation | Other | ||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | ||||
Adjustments: | 2 | 2 | ||
The Hertz Corporation | Operating Segments | ||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | ||||
Adjusted pre-tax income (loss): | (32) | (99) | ||
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): | (48) | (116) | ||
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): | (6) | (4) | ||
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): | 22 | 21 | ||
The Hertz Corporation | Corporate, Non-Segment | ||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | ||||
Adjusted pre-tax income (loss): | (142) | (113) | ||
The Hertz Corporation | Segment Reconciling Items | ||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | ||||
Adjusted pre-tax income (loss): | $ 1 | $ 1 | ||
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 C48
Guarantor and Non-Guarantor Condensed Consolidating Financial Information - Hertz (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Condensed Financial Statements, Captions [Line Items] | |||
Prepaid expenses and other assets | $ 1,110 | $ 687 | |
Adjustment to net cash provided by (used in) operating activities | 401 | $ 485 | |
Adjustment to cash flows from investing activities | (1,850) | (927) | |
Non-Guarantor Subsidiaries | |||
Condensed Financial Statements, Captions [Line Items] | |||
Prepaid expenses and other assets | 316 | 302 | |
Adjustment to net cash provided by (used in) operating activities | 957 | 1,488 | |
Adjustment to cash flows from investing activities | (1,479) | (1,175) | |
Parent (The Hertz Corporation) | |||
Condensed Financial Statements, Captions [Line Items] | |||
Prepaid expenses and other assets | 4,313 | $ 3,747 | |
Adjustment to net cash provided by (used in) operating activities | (221) | (727) | |
Adjustment to cash flows from investing activities | $ 297 | 424 | |
Restatement Adjustment | Non-Guarantor Subsidiaries | |||
Condensed Financial Statements, Captions [Line Items] | |||
Adjustment to cash flows from investing activities | $ 134 |
Guarantor and Non-Guarantor C49
Guarantor and Non-Guarantor Condensed Consolidating Financial Information - Hertz (Balance Sheet) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2016 |
ASSETS | |||||||
Cash and cash equivalents | $ 1,046 | $ 1,072 | |||||
Restricted cash and cash equivalents: | 894 | 432 | |||||
Total cash, cash equivalents, restricted cash and restricted cash equivalents | 1,940 | 1,504 | $ 1,051 | $ 1,094 | |||
Receivables, net of allowance | 1,332 | 1,365 | |||||
Due from related parties | $ 425 | $ 425 | |||||
Prepaid expenses and other assets | 1,110 | 687 | |||||
Revenue earning vehicles, net | 12,824 | 11,336 | |||||
Property and equipment, net | 827 | 840 | |||||
Other intangible assets, net | 3,204 | 3,242 | |||||
Goodwill | 1,084 | 1,084 | |||||
Total assets(a) | 22,321 | 20,058 | |||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Total accounts payable | 1,458 | 946 | |||||
Accrued liabilities | 1,172 | $ 1,160 | 920 | ||||
Accrued taxes, net | 163 | 160 | |||||
Debt | 16,811 | 14,865 | |||||
Public liability and property damage | 438 | 427 | |||||
Deferred income taxes, net | 1,141 | 1,169 | 1,220 | ||||
Total liabilities | 21,183 | 18,727 | 18,538 | ||||
Equity: | |||||||
Total stockholder's equity attributable to Hertz | 1,133 | 1,520 | |||||
Non-controlling interest | 5 | 0 | |||||
Total stockholders' equity | 1,138 | 1,331 | 1,520 | ||||
Total liabilities and stockholders' equity | 22,321 | $ 20,058 | 20,058 | ||||
Eliminations | |||||||
ASSETS | |||||||
Cash and cash equivalents | 0 | 0 | |||||
Restricted cash and cash equivalents: | 0 | 0 | |||||
Total cash, cash equivalents, restricted cash and restricted cash equivalents | 0 | 0 | 0 | 0 | |||
Receivables, net of allowance | 0 | 0 | |||||
Due from related parties | (16,864) | (16,734) | |||||
Prepaid expenses and other assets | (3,555) | (3,399) | |||||
Revenue earning vehicles, net | 0 | 0 | |||||
Property and equipment, net | 0 | 0 | |||||
Investment in subsidiaries, net | (8,766) | (9,231) | |||||
Other intangible assets, net | 0 | 0 | |||||
Goodwill | 0 | 0 | |||||
Total assets(a) | (29,185) | (29,364) | |||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Due to affiliates | (16,864) | (16,734) | |||||
Total accounts payable | 0 | 0 | |||||
Accrued liabilities | 0 | 0 | |||||
Accrued taxes, net | (2,233) | (2,173) | |||||
Debt | 0 | 0 | |||||
Public liability and property damage | 0 | 0 | |||||
Deferred income taxes, net | (1,322) | (1,226) | |||||
Total liabilities | (20,419) | (20,133) | |||||
Equity: | |||||||
Total stockholder's equity attributable to Hertz | (8,766) | ||||||
Non-controlling interest | 0 | ||||||
Total stockholders' equity | (8,766) | (9,231) | |||||
Total liabilities and stockholders' equity | (29,185) | (29,364) | |||||
Parent (The Hertz Corporation) | |||||||
ASSETS | |||||||
Cash and cash equivalents | 603 | 686 | |||||
Restricted cash and cash equivalents: | 87 | 225 | |||||
Total cash, cash equivalents, restricted cash and restricted cash equivalents | 690 | 911 | 514 | 511 | |||
Receivables, net of allowance | 165 | 366 | |||||
Due from related parties | 3,437 | 3,373 | |||||
Prepaid expenses and other assets | 4,313 | 3,747 | |||||
Revenue earning vehicles, net | 388 | 352 | |||||
Property and equipment, net | 623 | 639 | |||||
Investment in subsidiaries, net | 7,496 | 7,966 | |||||
Other intangible assets, net | 117 | 141 | |||||
Goodwill | 102 | 102 | |||||
Total assets(a) | 17,331 | 17,597 | |||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Due to affiliates | 10,357 | 10,368 | |||||
Total accounts payable | 425 | 375 | |||||
Accrued liabilities | 607 | 473 | |||||
Accrued taxes, net | 77 | 77 | |||||
Debt | 4,564 | 4,619 | |||||
Public liability and property damage | 168 | 165 | |||||
Deferred income taxes, net | 0 | 0 | |||||
Total liabilities | 16,198 | 16,077 | |||||
Equity: | |||||||
Total stockholder's equity attributable to Hertz | 1,133 | ||||||
Non-controlling interest | 0 | ||||||
Total stockholders' equity | 1,133 | 1,520 | |||||
Total liabilities and stockholders' equity | 17,331 | 17,597 | |||||
Guarantor Subsidiaries | |||||||
ASSETS | |||||||
Cash and cash equivalents | 12 | 9 | |||||
Restricted cash and cash equivalents: | 8 | 7 | |||||
Total cash, cash equivalents, restricted cash and restricted cash equivalents | 20 | 16 | 18 | 17 | |||
Receivables, net of allowance | 166 | 167 | |||||
Due from related parties | 4,793 | 4,567 | |||||
Prepaid expenses and other assets | 36 | 37 | |||||
Revenue earning vehicles, net | 4 | 2 | |||||
Property and equipment, net | 60 | 61 | |||||
Investment in subsidiaries, net | 1,270 | 1,265 | |||||
Other intangible assets, net | 3,078 | 3,091 | |||||
Goodwill | 943 | 944 | |||||
Total assets(a) | 10,370 | 10,150 | |||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Due to affiliates | 2,229 | 2,156 | |||||
Total accounts payable | 112 | 92 | |||||
Accrued liabilities | 72 | 73 | |||||
Accrued taxes, net | 20 | 21 | |||||
Debt | 0 | 0 | |||||
Public liability and property damage | 38 | 37 | |||||
Deferred income taxes, net | 1,465 | 1,451 | |||||
Total liabilities | 3,936 | 3,830 | |||||
Equity: | |||||||
Total stockholder's equity attributable to Hertz | 6,434 | ||||||
Non-controlling interest | 0 | ||||||
Total stockholders' equity | 6,434 | 6,320 | |||||
Total liabilities and stockholders' equity | 10,370 | 10,150 | |||||
Non-Guarantor Subsidiaries | |||||||
ASSETS | |||||||
Cash and cash equivalents | 431 | 377 | |||||
Restricted cash and cash equivalents: | 799 | 200 | |||||
Total cash, cash equivalents, restricted cash and restricted cash equivalents | 1,230 | 577 | 519 | 566 | |||
Receivables, net of allowance | 1,001 | 832 | |||||
Due from related parties | 8,634 | 8,794 | |||||
Prepaid expenses and other assets | 316 | 302 | |||||
Revenue earning vehicles, net | 12,432 | 10,982 | |||||
Property and equipment, net | 144 | 140 | |||||
Investment in subsidiaries, net | 0 | 0 | |||||
Other intangible assets, net | 9 | 10 | |||||
Goodwill | 39 | 38 | |||||
Total assets(a) | 23,805 | 21,675 | |||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Due to affiliates | 4,278 | 4,210 | |||||
Total accounts payable | 921 | 479 | |||||
Accrued liabilities | 493 | 374 | |||||
Accrued taxes, net | 2,299 | 2,235 | |||||
Debt | 12,247 | 10,246 | |||||
Public liability and property damage | 232 | 225 | |||||
Deferred income taxes, net | 998 | 995 | |||||
Total liabilities | 21,468 | 18,764 | |||||
Equity: | |||||||
Total stockholder's equity attributable to Hertz | 2,332 | ||||||
Non-controlling interest | 5 | ||||||
Total stockholders' equity | 2,337 | 2,911 | |||||
Total liabilities and stockholders' equity | 23,805 | 21,675 | |||||
The Hertz Corporation | |||||||
ASSETS | |||||||
Cash and cash equivalents | 1,046 | 1,072 | |||||
Restricted cash and cash equivalents: | 894 | 432 | |||||
Total cash, cash equivalents, restricted cash and restricted cash equivalents | 1,940 | 1,504 | $ 1,051 | $ 1,094 | |||
Receivables, net of allowance | 1,332 | 1,365 | |||||
Due from related parties | 0 | 0 | |||||
Prepaid expenses and other assets | 1,110 | 687 | |||||
Revenue earning vehicles, net | 12,824 | 11,336 | |||||
Property and equipment, net | 827 | 840 | |||||
Investment in subsidiaries, net | 0 | 0 | |||||
Other intangible assets, net | 3,204 | 3,242 | |||||
Goodwill | 1,084 | 1,084 | |||||
Total assets(a) | 22,321 | 20,058 | |||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Due to affiliates | 0 | 0 | |||||
Total accounts payable | 1,458 | 946 | |||||
Accrued liabilities | 1,172 | 920 | |||||
Accrued taxes, net | 163 | 160 | |||||
Debt | 16,811 | 14,865 | |||||
Public liability and property damage | 438 | 427 | |||||
Deferred income taxes, net | 1,141 | 1,220 | |||||
Total liabilities | 21,183 | 18,538 | |||||
Equity: | |||||||
Total stockholder's equity attributable to Hertz | 1,133 | 1,520 | |||||
Non-controlling interest | 5 | 0 | |||||
Total stockholders' equity | 1,138 | 1,520 | |||||
Total liabilities and stockholders' equity | $ 22,321 | $ 20,058 |
Guarantor and Non-Guarantor C50
Guarantor and Non-Guarantor Condensed Consolidating Financial Information - Hertz (Statement of Operations and Comprehensive Income) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Condensed Financial Statements, Captions [Line Items] | ||
Total revenues | $ 2,063 | $ 1,916 |
Expenses: | ||
Direct vehicle and operating | 1,236 | 1,132 |
Depreciation of revenue earning vehicles and lease charges, net | 661 | 701 |
Selling, general and administrative | 234 | 220 |
Interest (income) expense, net | 166 | 130 |
Other (income) expense, net | (3) | 27 |
Total expenses | 2,294 | 2,210 |
Income (loss) from continuing operations before income taxes and equity in earnings (losses) of subsidiaries | (231) | (294) |
(Provision) benefit for taxes on income (loss) of continuing operations | 29 | 71 |
Net income (loss) | (202) | (223) |
Other comprehensive income (loss), net of tax | (3) | 13 |
Comprehensive income (loss) | (205) | (210) |
Eliminations | ||
Condensed Financial Statements, Captions [Line Items] | ||
Total revenues | (801) | (759) |
Expenses: | ||
Direct vehicle and operating | 0 | 0 |
Depreciation of revenue earning vehicles and lease charges, net | (801) | (759) |
Selling, general and administrative | 0 | 0 |
Interest (income) expense, net | 0 | 0 |
Other (income) expense, net | 0 | 0 |
Total expenses | (801) | (759) |
Income (loss) from continuing operations before income taxes and equity in earnings (losses) of subsidiaries | 0 | 0 |
(Provision) benefit for taxes on income (loss) of continuing operations | 0 | 0 |
Equity in earnings (losses) of subsidiaries, net of tax | (424) | (295) |
Net income (loss) | (424) | (295) |
Other comprehensive income (loss), net of tax | 5 | (12) |
Comprehensive income (loss) | (419) | (307) |
Parent (The Hertz Corporation) | ||
Condensed Financial Statements, Captions [Line Items] | ||
Total revenues | 1,056 | 991 |
Expenses: | ||
Direct vehicle and operating | 751 | 688 |
Depreciation of revenue earning vehicles and lease charges, net | 766 | 737 |
Selling, general and administrative | 161 | 150 |
Interest (income) expense, net | 102 | 82 |
Other (income) expense, net | (2) | 33 |
Total expenses | 1,778 | 1,690 |
Income (loss) from continuing operations before income taxes and equity in earnings (losses) of subsidiaries | (722) | (699) |
(Provision) benefit for taxes on income (loss) of continuing operations | 122 | 214 |
Equity in earnings (losses) of subsidiaries, net of tax | 399 | 263 |
Net income (loss) | (201) | (222) |
Other comprehensive income (loss), net of tax | (3) | 13 |
Comprehensive income (loss) | (204) | (209) |
Guarantor Subsidiaries | ||
Condensed Financial Statements, Captions [Line Items] | ||
Total revenues | 319 | 307 |
Expenses: | ||
Direct vehicle and operating | 172 | 169 |
Depreciation of revenue earning vehicles and lease charges, net | 84 | 102 |
Selling, general and administrative | 12 | 11 |
Interest (income) expense, net | (33) | (22) |
Other (income) expense, net | 0 | 0 |
Total expenses | 235 | 260 |
Income (loss) from continuing operations before income taxes and equity in earnings (losses) of subsidiaries | 84 | 47 |
(Provision) benefit for taxes on income (loss) of continuing operations | (14) | (15) |
Equity in earnings (losses) of subsidiaries, net of tax | 25 | 32 |
Net income (loss) | 95 | 64 |
Other comprehensive income (loss), net of tax | (2) | 0 |
Comprehensive income (loss) | 93 | 64 |
Non-Guarantor Subsidiaries | ||
Condensed Financial Statements, Captions [Line Items] | ||
Total revenues | 1,489 | 1,377 |
Expenses: | ||
Direct vehicle and operating | 313 | 275 |
Depreciation of revenue earning vehicles and lease charges, net | 612 | 621 |
Selling, general and administrative | 61 | 59 |
Interest (income) expense, net | 96 | 69 |
Other (income) expense, net | (1) | (6) |
Total expenses | 1,081 | 1,018 |
Income (loss) from continuing operations before income taxes and equity in earnings (losses) of subsidiaries | 408 | 359 |
(Provision) benefit for taxes on income (loss) of continuing operations | (79) | (128) |
Equity in earnings (losses) of subsidiaries, net of tax | 0 | 0 |
Net income (loss) | 329 | 231 |
Other comprehensive income (loss), net of tax | (3) | 12 |
Comprehensive income (loss) | 326 | 243 |
The Hertz Corporation | ||
Condensed Financial Statements, Captions [Line Items] | ||
Total revenues | 2,063 | 1,916 |
Expenses: | ||
Direct vehicle and operating | 1,236 | 1,132 |
Depreciation of revenue earning vehicles and lease charges, net | 661 | 701 |
Selling, general and administrative | 234 | 220 |
Interest (income) expense, net | 165 | 129 |
Other (income) expense, net | (3) | 27 |
Total expenses | 2,293 | 2,209 |
Income (loss) from continuing operations before income taxes and equity in earnings (losses) of subsidiaries | (230) | (293) |
(Provision) benefit for taxes on income (loss) of continuing operations | 29 | 71 |
Equity in earnings (losses) of subsidiaries, net of tax | 0 | 0 |
Net income (loss) | (201) | (222) |
Other comprehensive income (loss), net of tax | (3) | 13 |
Comprehensive income (loss) | $ (204) | $ (209) |
Guarantor and Non-Guarantor C51
Guarantor and Non-Guarantor Condensed Consolidating Financial Information - Hertz (Statement of Cash Flows) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Condensed Financial Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | $ 401 | $ 485 |
Cash flows from investing activities: | ||
Revenue earning vehicles expenditures | (3,565) | (2,837) |
Proceeds from disposal of revenue earning vehicles | 1,782 | 1,935 |
Capital asset expenditures, non-vehicle | (44) | (41) |
Proceeds from disposal of property and other equipment | 4 | 7 |
Other | (27) | 9 |
Net cash provided by (used in) investing activities | (1,850) | (927) |
Cash flows from financing activities: | ||
Payment of financing costs | (19) | (12) |
Other | 2 | (1) |
Net cash provided by (used in) financing activities | 1,877 | 391 |
Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents | 8 | 8 |
Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents during the period | 436 | (43) |
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period | 1,504 | 1,094 |
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period | 1,940 | 1,051 |
Vehicles | ||
Cash flows from financing activities: | ||
Proceeds from issuance of debt | 5,181 | 2,098 |
Repayments of debt | (3,283) | (1,692) |
Non-vehicle | ||
Cash flows from financing activities: | ||
Proceeds from issuance of debt | 127 | 100 |
Repayments of debt | (131) | (102) |
Eliminations | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | (341) | (280) |
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 | |
Other | 0 | |
Capital contributions to subsidiaries | 877 | 528 |
Return of capital from subsidiaries | (1,307) | (1,016) |
Loan to Parent/Guarantor from Non-Guarantor | (235) | 316 |
Net cash provided by (used in) investing activities | (665) | (172) |
Cash flows from financing activities: | ||
Payment of financing costs | 0 | 0 |
Advances to Hertz Global/Old Hertz Holdings | 0 | 0 |
Other | 0 | |
Capital contributions received from parent | (877) | (528) |
Payment of dividends and return of capital | 1,648 | 1,296 |
Loan to Parent/Guarantor from Non-Guarantor | 235 | (316) |
Net cash provided by (used in) financing activities | 1,006 | 452 |
Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents | 0 | 0 |
Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents during the period | 0 | 0 |
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period | 0 | 0 |
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period | 0 | 0 |
Eliminations | Vehicles | ||
Cash flows from financing activities: | ||
Proceeds from issuance of debt | 0 | 0 |
Repayments of debt | 0 | 0 |
Eliminations | Non-vehicle | ||
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 | (221) | (727) |
Cash flows from investing activities: | ||
Revenue earning vehicles expenditures | (129) | (89) |
Proceeds from disposal of revenue earning vehicles | 48 | 49 |
Capital asset expenditures, non-vehicle | (28) | (29) |
Proceeds from disposal of property and other equipment | 0 | 5 |
Sales of shares in equity investment | 0 | |
Other | (24) | |
Capital contributions to subsidiaries | (877) | (528) |
Return of capital from subsidiaries | 1,307 | 1,016 |
Loan to Parent/Guarantor from Non-Guarantor | 0 | 0 |
Net cash provided by (used in) investing activities | 297 | 424 |
Cash flows from financing activities: | ||
Payment of financing costs | (1) | (5) |
Advances to Hertz Global/Old Hertz Holdings | (4) | (2) |
Other | 0 | |
Capital contributions received from parent | 0 | 0 |
Payment of dividends and return of capital | 0 | 0 |
Loan to Parent/Guarantor from Non-Guarantor | (235) | 316 |
Net cash provided by (used in) financing activities | (297) | 307 |
Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents | 0 | (1) |
Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents during the period | (221) | 3 |
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period | 911 | 511 |
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period | 690 | 514 |
Parent (The Hertz Corporation) | Vehicles | ||
Cash flows from financing activities: | ||
Proceeds from issuance of debt | 554 | 276 |
Repayments of debt | (607) | (276) |
Parent (The Hertz Corporation) | Non-vehicle | ||
Cash flows from financing activities: | ||
Proceeds from issuance of debt | 127 | 100 |
Repayments of debt | (131) | (102) |
Guarantor Subsidiaries | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | 7 | 5 |
Cash flows from investing activities: | ||
Revenue earning vehicles expenditures | 0 | (1) |
Proceeds from disposal of revenue earning vehicles | 0 | 0 |
Capital asset expenditures, non-vehicle | (3) | (3) |
Proceeds from disposal of property and other equipment | 0 | 0 |
Sales of shares in equity investment | 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 | (3) | (4) |
Cash flows from financing activities: | ||
Payment of financing costs | 0 | 0 |
Advances to Hertz Global/Old Hertz Holdings | 0 | 0 |
Other | 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 | 0 | 0 |
Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents | 0 | 0 |
Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents during the period | 4 | 1 |
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period | 16 | 17 |
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period | 20 | 18 |
Guarantor Subsidiaries | Vehicles | ||
Cash flows from financing activities: | ||
Proceeds from issuance of debt | 0 | 0 |
Repayments of debt | 0 | 0 |
Guarantor Subsidiaries | Non-vehicle | ||
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 | 957 | 1,488 |
Cash flows from investing activities: | ||
Revenue earning vehicles expenditures | (3,436) | (2,747) |
Proceeds from disposal of revenue earning vehicles | 1,734 | 1,886 |
Capital asset expenditures, non-vehicle | (13) | (9) |
Proceeds from disposal of property and other equipment | 4 | 2 |
Sales of shares in equity investment | 9 | |
Other | (3) | |
Capital contributions to subsidiaries | 0 | 0 |
Return of capital from subsidiaries | 0 | 0 |
Loan to Parent/Guarantor from Non-Guarantor | 235 | (316) |
Net cash provided by (used in) investing activities | (1,479) | (1,175) |
Cash flows from financing activities: | ||
Payment of financing costs | (18) | (7) |
Advances to Hertz Global/Old Hertz Holdings | 0 | 0 |
Other | 5 | |
Capital contributions received from parent | 877 | 528 |
Payment of dividends and return of capital | (1,648) | (1,296) |
Loan to Parent/Guarantor from Non-Guarantor | 0 | 0 |
Net cash provided by (used in) financing activities | 1,167 | (369) |
Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents | 8 | 9 |
Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents during the period | 653 | (47) |
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period | 577 | 566 |
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period | 1,230 | 519 |
Non-Guarantor Subsidiaries | Vehicles | ||
Cash flows from financing activities: | ||
Proceeds from issuance of debt | 4,627 | 1,822 |
Repayments of debt | (2,676) | (1,416) |
Non-Guarantor Subsidiaries | Non-vehicle | ||
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 | 402 | 486 |
Cash flows from investing activities: | ||
Revenue earning vehicles expenditures | (3,565) | (2,837) |
Proceeds from disposal of revenue earning vehicles | 1,782 | 1,935 |
Capital asset expenditures, non-vehicle | (44) | (41) |
Proceeds from disposal of property and other equipment | 4 | 7 |
Sales of shares in equity investment | 9 | |
Other | (27) | 9 |
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 | (1,850) | (927) |
Cash flows from financing activities: | ||
Payment of financing costs | (19) | (12) |
Advances to Hertz Global/Old Hertz Holdings | (4) | (2) |
Other | 5 | 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 | 1,876 | 390 |
Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents | 8 | 8 |
Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents during the period | 436 | (43) |
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period | 1,504 | 1,094 |
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period | 1,940 | 1,051 |
The Hertz Corporation | Vehicles | ||
Cash flows from financing activities: | ||
Proceeds from issuance of debt | 5,181 | 2,098 |
Repayments of debt | (3,283) | (1,692) |
The Hertz Corporation | Non-vehicle | ||
Cash flows from financing activities: | ||
Proceeds from issuance of debt | 127 | 100 |
Repayments of debt | $ (131) | $ (102) |