Cover page
Cover page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 17, 2022 | Jun. 30, 2021 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-37665 | ||
Entity Registrant Name | HERTZ GLOBAL HOLDINGS, INC | ||
Entity Address, Address Description | 8501 Williams Road, | ||
Entity Address, City or Town | Estero, | ||
Entity Address, State or Province | FL | ||
Entity Address, Postal Zip Code | 33928 | ||
City Area Code | (239) | ||
Local Phone Number | 301-7000 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 61-1770902 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 2.7 | ||
Entity Bankruptcy Proceedings, Reporting Current | true | ||
Entity Common Stock, Shares Outstanding | 429,294,302 | ||
Documents Incorporated by Reference | Information required by Items 10, 11, 12 and 13 of Part III of this Form 10-K is incorporated by reference to Hertz Global Holdings, Inc.'s definitive proxy statement for its 2022 Annual Meeting of Stockholders. Hertz Global Holdings, Inc. intends to file such proxy statement with the Securities and Exchange Commission no later than 120 days after its fiscal year ended December 31, 2021. | ||
Entity Central Index Key | 0001657853 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Common Stock | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Common stock | ||
Trading Symbol | HTZ | ||
Security Exchange Name | NASDAQ | ||
Warrants | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Warrants to purchase common stock | ||
Trading Symbol | HTZWW | ||
Security Exchange Name | NASDAQ | ||
The Hertz Corporation | |||
Entity Information [Line Items] | |||
Document Period End Date | Dec. 31, 2021 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity File Number | 001-07541 | ||
Entity Registrant Name | THE HERTZ CORPORATION | ||
Entity Address, Address Description | 8501 Williams Road, | ||
Entity Address, City or Town | Estero, | ||
Entity Address, State or Province | FL | ||
Entity Address, Postal Zip Code | 33928 | ||
City Area Code | (239) | ||
Local Phone Number | 301-7000 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 13-1938568 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | Yes | ||
Entity Current Reporting Status | No | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 100 | ||
Documents Incorporated by Reference | None | ||
Entity Central Index Key | 0000047129 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Auditor [Line Items] | |
Auditor Name | Ernst & Young LLP |
Auditor Firm ID | 42 |
Auditor Location | Tampa, Florida |
The Hertz Corporation | |
Auditor [Line Items] | |
Auditor Name | Ernst & Young LLP |
Auditor Firm ID | 42 |
Auditor Location | Tampa, Florida |
HGH - CONSOLIDATED BALANCE SHEE
HGH - CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||||
ASSETS | ||||||||
Cash and cash equivalents | $ 2,258 | $ 1,096 | ||||||
Total restricted cash and cash equivalents | 393 | 411 | ||||||
Total cash, cash equivalents, restricted cash and restricted cash equivalents | 2,651 | [1] | 1,507 | $ 1,360 | [1] | $ 1,410 | [1] | |
Receivables | 758 | 777 | ||||||
Prepaid expenses and other assets | 1,017 | 373 | ||||||
Revenue Earning Vehicles [Abstract] | ||||||||
Vehicles | 10,836 | 7,540 | ||||||
Less: accumulated depreciation | (1,610) | (1,478) | ||||||
Total revenue earning vehicles, net | 9,226 | 6,062 | ||||||
Property and equipment, net | 608 | 666 | ||||||
Operating lease right-of-use assets | 1,566 | 1,675 | ||||||
Intangible assets, net | 2,912 | 2,992 | ||||||
Goodwill | 1,045 | 1,045 | 1,047 | |||||
Assets held for sale | 0 | 1,811 | ||||||
Total assets | [2] | 19,783 | 16,908 | |||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Accounts payable | 572 | 418 | ||||||
Accrued liabilities | 863 | 759 | ||||||
Accrued taxes, net | 157 | 121 | ||||||
Debt | 10,907 | 6,267 | ||||||
Public Warrants | 1,324 | 0 | ||||||
Operating lease liabilities | 1,510 | 1,636 | ||||||
Self-insured liabilities | 463 | 488 | ||||||
Deferred income taxes, net | 1,010 | 730 | ||||||
Total liabilities not subject to compromise | 16,806 | 10,419 | ||||||
Liabilities subject to compromise | 0 | 4,965 | ||||||
Liabilities held for sale | 0 | 1,431 | ||||||
Total liabilities | [2] | 16,806 | 16,815 | |||||
Commitments and contingencies | ||||||||
Stockholder's equity (deficit): | ||||||||
Preferred stock, $0.01 par value, no shares issued and outstanding | 0 | 0 | ||||||
Common stock, $0.01 par value, 477,233,278 and 158,235,410 shares issued, respectively, and 449,782,424 and 156,206,478 shares outstanding, respectively | 5 | 2 | ||||||
Treasury stock, at cost, 27,450,854 and 2,028,932 common shares, respectively | (708) | (100) | ||||||
Additional paid-in capital | 6,209 | 3,047 | ||||||
Retained earnings (Accumulated deficit) | (2,315) | (2,681) | ||||||
Accumulated other comprehensive income (loss) | (214) | (212) | ||||||
Stockholder's equity (deficit) attributable to Hertz | 2,977 | 56 | ||||||
Noncontrolling interests | 0 | 37 | ||||||
Total stockholder's equity (deficit) | 2,977 | 93 | $ 1,888 | $ 1,120 | ||||
Total liabilities and stockholder's equity (deficit) | 19,783 | 16,908 | ||||||
Vehicle | ||||||||
ASSETS | ||||||||
Total restricted cash and cash equivalents | 77 | 50 | ||||||
Receivables | 62 | 164 | ||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Accounts payable | 56 | 29 | ||||||
Debt | 7,921 | 6,024 | ||||||
Non-vehicle | ||||||||
ASSETS | ||||||||
Total restricted cash and cash equivalents | 316 | 361 | ||||||
Receivables | 696 | 613 | ||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Accounts payable | 516 | 389 | ||||||
Debt | $ 2,986 | $ 243 | ||||||
[1] | Amounts include cash and cash equivalents and restricted cash and cash equivalents which were held for sale as of December 31, 2020, prior to the completion of the Donlen Sale in the first quarter of 2021, as described in Note 3 , " Divestitures." | |||||||
[2] | Hertz Global Holdings, Inc.'s consolidated total assets as of December 31, 2021 and December 31, 2020 included total assets of variable interest entities ("VIEs") of $734 million and $511 million, respectively, which can only be used to settle obligations of the VIEs. Hertz Global Holdings, Inc.'s consolidated total liabilities as of December 31, 2021 and December 31, 2020 included total liabilities of VIEs of $733 million and $475 million, respectively, for which the creditors of the VIEs have no recourse to Hertz Global Holdings, Inc. See "Pledges Related to Vehicle Financing" in Note 6, "Debt," and "Termination of 767 Auto Leasing Agreement" in Note 3, "Divestitures," for further information. |
HGH - CONSOLIDATED BALANCE SH_2
HGH - CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | |
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 | 477,233,278 | 158,235,410 | ||
Common stock, shares outstanding | 449,782,424 | 471,102,462 | 156,206,478 | |
Treasury stock, shares | 27,450,854 | 2,028,932 | ||
Total assets | [1] | $ 19,783 | $ 16,908 | |
Liabilities | [1] | 16,806 | 16,815 | |
Non-vehicle | ||||
Accounts receivable, allowance for credit loss | $ 48 | $ 46 | ||
The Hertz Corporation | ||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | ||
Common stock, shares issued | 100 | 100 | ||
Common stock, shares outstanding | 100 | 100 | ||
Total assets | [2] | $ 19,780 | $ 16,880 | |
Liabilities | [2] | 15,430 | 16,885 | |
The Hertz Corporation | Non-vehicle | ||||
Accounts receivable, allowance for credit loss | 48 | 46 | ||
The Hertz Corporation | Variable Interest Entity, Primary Beneficiary | ||||
Total assets | 734 | 511 | ||
Liabilities | $ 733 | $ 475 | ||
[1] | Hertz Global Holdings, Inc.'s consolidated total assets as of December 31, 2021 and December 31, 2020 included total assets of variable interest entities ("VIEs") of $734 million and $511 million, respectively, which can only be used to settle obligations of the VIEs. Hertz Global Holdings, Inc.'s consolidated total liabilities as of December 31, 2021 and December 31, 2020 included total liabilities of VIEs of $733 million and $475 million, respectively, for which the creditors of the VIEs have no recourse to Hertz Global Holdings, Inc. See "Pledges Related to Vehicle Financing" in Note 6, "Debt," and "Termination of 767 Auto Leasing Agreement" in Note 3, "Divestitures," for further information. | |||
[2] | The Hertz Corporation's consolidated total assets as of December 31, 2021 and December 31, 2020 included total assets of VIEs of $734 million and $511 million, respectively, which can only be used to settle obligations of the VIEs. The Hertz Corporation's consolidated total liabilities as of December 31, 2021 and December 31, 2020 included total liabilities of VIEs of $733 million and $475 million, respectively, for which the creditors of the VIEs have no recourse to The Hertz Corporation. See "Pledges Related to Vehicle Financing" in Note 6, "Debt," and "Termination of 767 Auto Leasing Agreement" in Note 3, "Divestitures," for further information. |
THC - CONSOLIDATED BALANCE SHEE
THC - CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | ||
ASSETS | ||||
Cash and cash equivalents | $ 2,258 | $ 1,096 | ||
Total restricted cash and cash equivalents | 393 | 411 | ||
Total cash, cash equivalents, restricted cash and restricted cash equivalents | 2,651 | [1] | 1,507 | |
Receivables | 758 | 777 | ||
Prepaid expenses and other assets | 1,017 | 373 | ||
Revenue Earning Vehicles [Abstract] | ||||
Vehicles | 10,836 | 7,540 | ||
Less: accumulated depreciation | (1,610) | (1,478) | ||
Total revenue earning vehicles, net | 9,226 | 6,062 | ||
Property and equipment, net | 608 | 666 | ||
Operating lease right-of-use assets | 1,566 | 1,675 | ||
Intangible assets, net | 2,912 | 2,992 | ||
Goodwill | 1,045 | 1,045 | ||
Assets held for sale | 0 | 1,811 | ||
Total assets | [2] | 19,783 | 16,908 | |
LIABILITIES AND STOCKHOLDER'S EQUITY (DEFICIT) | ||||
Accounts payable | 572 | 418 | ||
Accrued liabilities | 863 | 759 | ||
Accrued taxes, net | 157 | 121 | ||
Debt | 10,907 | 6,267 | ||
Operating lease liabilities | 1,510 | 1,636 | ||
Self-insured liabilities | 463 | 488 | ||
Deferred income taxes, net | 1,010 | 730 | ||
Total liabilities not subject to compromise | 16,806 | 10,419 | ||
Liabilities subject to compromise | 0 | 4,965 | ||
Liabilities held for sale | 0 | 1,431 | ||
Total liabilities | [2] | 16,806 | 16,815 | |
Commitments and contingencies | ||||
Stockholder's equity (deficit): | ||||
Common stock, $0.01 par value, 3,000 shares authorized and 100 shares issued and outstanding | 5 | 2 | ||
Additional paid-in capital | 6,209 | 3,047 | ||
Retained earnings (Accumulated deficit) | (2,315) | (2,681) | ||
Accumulated other comprehensive income (loss) | (214) | (212) | ||
Stockholder's equity (deficit) attributable to Hertz | 2,977 | 56 | ||
Noncontrolling interests | 0 | 37 | ||
Total stockholder's equity (deficit) | 2,977 | 93 | ||
Total liabilities and stockholder's equity (deficit) | 19,783 | 16,908 | ||
Vehicle | ||||
ASSETS | ||||
Total restricted cash and cash equivalents | 77 | 50 | ||
Receivables | 62 | 164 | ||
LIABILITIES AND STOCKHOLDER'S EQUITY (DEFICIT) | ||||
Accounts payable | 56 | 29 | ||
Debt | 7,921 | 6,024 | ||
Non-vehicle | ||||
ASSETS | ||||
Total restricted cash and cash equivalents | 316 | 361 | ||
Receivables | 696 | 613 | ||
LIABILITIES AND STOCKHOLDER'S EQUITY (DEFICIT) | ||||
Accounts payable | 516 | 389 | ||
Debt | 2,986 | 243 | ||
The Hertz Corporation | ||||
ASSETS | ||||
Cash and cash equivalents | 2,257 | 1,096 | ||
Total restricted cash and cash equivalents | 393 | 383 | ||
Total cash, cash equivalents, restricted cash and restricted cash equivalents | 2,650 | [3] | 1,479 | |
Receivables | 757 | 777 | ||
Due from Hertz Holdings | 0 | 1 | ||
Prepaid expenses and other assets | 1,016 | 372 | ||
Revenue Earning Vehicles [Abstract] | ||||
Vehicles | 10,836 | 7,540 | ||
Less: accumulated depreciation | (1,610) | (1,478) | ||
Total revenue earning vehicles, net | 9,226 | 6,062 | ||
Property and equipment, net | 608 | 666 | ||
Operating lease right-of-use assets | 1,566 | 1,675 | ||
Intangible assets, net | 2,912 | 2,992 | ||
Goodwill | 1,045 | 1,045 | ||
Assets held for sale | 0 | 1,811 | ||
Total assets | [4] | 19,780 | 16,880 | |
LIABILITIES AND STOCKHOLDER'S EQUITY (DEFICIT) | ||||
Accounts payable | 572 | 418 | ||
Accrued liabilities | 809 | 759 | ||
Accrued taxes, net | 157 | 121 | ||
Debt | 10,907 | 6,267 | ||
Operating lease liabilities | 1,510 | 1,636 | ||
Self-insured liabilities | 463 | 488 | ||
Deferred income taxes, net | 1,012 | 735 | ||
Total liabilities not subject to compromise | 15,430 | 10,424 | ||
Liabilities subject to compromise | 0 | 5,030 | ||
Liabilities held for sale | 0 | 1,431 | ||
Total liabilities | [4] | 15,430 | 16,885 | |
Commitments and contingencies | ||||
Stockholder's equity (deficit): | ||||
Common stock, $0.01 par value, 3,000 shares authorized and 100 shares issued and outstanding | 0 | 0 | ||
Additional paid-in capital | 7,190 | 3,953 | ||
Retained earnings (Accumulated deficit) | (2,626) | (3,783) | ||
Accumulated other comprehensive income (loss) | (214) | (212) | ||
Stockholder's equity (deficit) attributable to Hertz | 4,350 | (42) | ||
Noncontrolling interests | 0 | 37 | ||
Total stockholder's equity (deficit) | 4,350 | (5) | ||
Total liabilities and stockholder's equity (deficit) | 19,780 | 16,880 | ||
The Hertz Corporation | Vehicle | ||||
ASSETS | ||||
Total restricted cash and cash equivalents | 77 | 50 | ||
Receivables | 62 | 164 | ||
LIABILITIES AND STOCKHOLDER'S EQUITY (DEFICIT) | ||||
Accounts payable | 56 | 29 | ||
Debt | 7,921 | 6,024 | ||
The Hertz Corporation | Non-vehicle | ||||
ASSETS | ||||
Total restricted cash and cash equivalents | 316 | 333 | ||
Receivables | 695 | 613 | ||
LIABILITIES AND STOCKHOLDER'S EQUITY (DEFICIT) | ||||
Accounts payable | 516 | 389 | ||
Debt | $ 2,986 | $ 243 | ||
[1] | Amounts include cash and cash equivalents and restricted cash and cash equivalents which were held for sale as of December 31, 2020, prior to the completion of the Donlen Sale in the first quarter of 2021, as described in Note 3 , " Divestitures." | |||
[2] | Hertz Global Holdings, Inc.'s consolidated total assets as of December 31, 2021 and December 31, 2020 included total assets of variable interest entities ("VIEs") of $734 million and $511 million, respectively, which can only be used to settle obligations of the VIEs. Hertz Global Holdings, Inc.'s consolidated total liabilities as of December 31, 2021 and December 31, 2020 included total liabilities of VIEs of $733 million and $475 million, respectively, for which the creditors of the VIEs have no recourse to Hertz Global Holdings, Inc. See "Pledges Related to Vehicle Financing" in Note 6, "Debt," and "Termination of 767 Auto Leasing Agreement" in Note 3, "Divestitures," for further information. | |||
[3] | Amounts include cash and cash equivalents and restricted cash and cash equivalents which were held for sale as of December 31, 2020, prior to the completion of the Donlen Sale in the first quarter of 2021, as described in Note 3 , " Divestitures ." | |||
[4] | The Hertz Corporation's consolidated total assets as of December 31, 2021 and December 31, 2020 included total assets of VIEs of $734 million and $511 million, respectively, which can only be used to settle obligations of the VIEs. The Hertz Corporation's consolidated total liabilities as of December 31, 2021 and December 31, 2020 included total liabilities of VIEs of $733 million and $475 million, respectively, for which the creditors of the VIEs have no recourse to The Hertz Corporation. See "Pledges Related to Vehicle Financing" in Note 6, "Debt," and "Termination of 767 Auto Leasing Agreement" in Note 3, "Divestitures," for further information. |
THC - CONSOLIDATED BALANCE SH_2
THC - CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | ||
Common stock, shares authorized | 1,000,000,000 | 400,000,000 | ||
Common stock, shares issued | 477,233,278 | 158,235,410 | ||
Common stock, shares outstanding | 449,782,424 | 471,102,462 | 156,206,478 | |
Assets | [1] | $ 19,783 | $ 16,908 | |
Liabilities | [1] | 16,806 | 16,815 | |
Non-vehicle | ||||
Accounts receivable, allowance for credit loss | $ 48 | $ 46 | ||
The Hertz Corporation | ||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | ||
Common stock, shares authorized | 3,000 | 3,000 | ||
Common stock, shares issued | 100 | 100 | ||
Common stock, shares outstanding | 100 | 100 | ||
Assets | [2] | $ 19,780 | $ 16,880 | |
Liabilities | [2] | 15,430 | 16,885 | |
The Hertz Corporation | Non-vehicle | ||||
Accounts receivable, allowance for credit loss | 48 | 46 | ||
The Hertz Corporation | Variable Interest Entity, Primary Beneficiary | ||||
Assets | 734 | 511 | ||
Liabilities | $ 733 | $ 475 | ||
[1] | Hertz Global Holdings, Inc.'s consolidated total assets as of December 31, 2021 and December 31, 2020 included total assets of variable interest entities ("VIEs") of $734 million and $511 million, respectively, which can only be used to settle obligations of the VIEs. Hertz Global Holdings, Inc.'s consolidated total liabilities as of December 31, 2021 and December 31, 2020 included total liabilities of VIEs of $733 million and $475 million, respectively, for which the creditors of the VIEs have no recourse to Hertz Global Holdings, Inc. See "Pledges Related to Vehicle Financing" in Note 6, "Debt," and "Termination of 767 Auto Leasing Agreement" in Note 3, "Divestitures," for further information. | |||
[2] | The Hertz Corporation's consolidated total assets as of December 31, 2021 and December 31, 2020 included total assets of VIEs of $734 million and $511 million, respectively, which can only be used to settle obligations of the VIEs. The Hertz Corporation's consolidated total liabilities as of December 31, 2021 and December 31, 2020 included total liabilities of VIEs of $733 million and $475 million, respectively, for which the creditors of the VIEs have no recourse to The Hertz Corporation. See "Pledges Related to Vehicle Financing" in Note 6, "Debt," and "Termination of 767 Auto Leasing Agreement" in Note 3, "Divestitures," for further information. |
HGH - CONSOLIDATED STATEMENTS O
HGH - CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues: | |||
Revenues | $ 7,336 | $ 5,258 | $ 9,779 |
Expenses: | |||
Direct vehicle and operating | 3,920 | 3,423 | 5,305 |
Depreciation of revenue earning vehicles and lease charges | 497 | 2,030 | 2,563 |
Non-vehicle depreciation and amortization | 196 | 225 | 203 |
Selling, general and administrative | 688 | 645 | 949 |
Interest expense, net: | |||
Total interest expense, net | 469 | 608 | 805 |
Technology-related intangible and other asset impairments | 0 | 213 | 0 |
Other (income) expense, net | (21) | (9) | (59) |
Reorganization items, net | 677 | 175 | 0 |
(Gain) from the sale of a business | (400) | 0 | 0 |
Change in fair value of Public Warrants | 627 | 0 | 0 |
Total expenses | 6,653 | 7,310 | 9,766 |
Income (loss) before income taxes | 683 | (2,052) | 13 |
Income tax (provision) benefit | (318) | 329 | (63) |
Net income (loss) | 365 | (1,723) | (50) |
Net (income) loss attributable to noncontrolling interests | 1 | 9 | (8) |
Net income (loss) attributable to Hertz Global | 366 | (1,714) | (58) |
Net income (loss) available to Hertz Global common stockholders | $ (84) | $ (1,714) | $ (58) |
Weighted-average common shares outstanding: | |||
Basic (in shares) | 315 | 150 | 117 |
Diluted (in shares) | 315 | 150 | 117 |
Earnings Per Share [Abstract] | |||
Basic earnings (loss) per share (in dollars per share) | $ (0.27) | $ (11.44) | $ (0.49) |
Diluted earnings (loss) per share (in dollars per share) | $ (0.27) | $ (11.44) | $ (0.49) |
Series A Preferred Stock | |||
Interest expense, net: | |||
Series A Preferred Stock deemed dividends | $ (450) | $ 0 | $ 0 |
Vehicle | |||
Interest expense, net: | |||
Total interest expense, net | 284 | 455 | 494 |
Non-vehicle | |||
Interest expense, net: | |||
Total interest expense, net | $ 185 | $ 153 | $ 311 |
HGH - CONSOLIDATED STATEMENTS_2
HGH - CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Non-vehicle | |
Contractual Interest | $ 129 |
THC - CONSOLIDATED STATEMENTS O
THC - CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues: | |||
Revenues | $ 7,336 | $ 5,258 | $ 9,779 |
Expenses: | |||
Direct vehicle and operating | 3,920 | 3,423 | 5,305 |
Depreciation of revenue earning vehicles and lease charges | 497 | 2,030 | 2,563 |
Non-vehicle depreciation and amortization | 196 | 225 | 203 |
Selling, general and administrative | 688 | 645 | 949 |
Interest expense, net: | |||
Total interest expense, net | 469 | 608 | 805 |
Technology-related intangible and other asset impairments | 0 | 213 | 0 |
Other (income) expense, net | (21) | (9) | (59) |
Reorganization items, net | 677 | 175 | 0 |
(Gain) from the sale of a business | (400) | 0 | 0 |
Total expenses | 6,653 | 7,310 | 9,766 |
Income (loss) before income taxes | 683 | (2,052) | 13 |
Income tax (provision) benefit | (318) | 329 | (63) |
Net income (loss) | 365 | (1,723) | (50) |
Net (income) loss attributable to noncontrolling interests | 1 | 9 | (8) |
Net income (loss) attributable to Hertz Global | 366 | (1,714) | (58) |
Net income (loss) available to Hertz Global common stockholders | $ (84) | $ (1,714) | $ (58) |
Weighted-average common shares outstanding: | |||
Basic (in shares) | 315 | 150 | 117 |
Diluted (in shares) | 315 | 150 | 117 |
Earnings Per Share [Abstract] | |||
Basic earnings (loss) per share (in dollars per share) | $ (0.27) | $ (11.44) | $ (0.49) |
Diluted earnings (loss) per share (in dollars per share) | $ (0.27) | $ (11.44) | $ (0.49) |
The Hertz Corporation | |||
Revenues: | |||
Revenues | $ 7,336 | $ 5,258 | $ 9,779 |
Expenses: | |||
Direct vehicle and operating | 3,920 | 3,423 | 5,305 |
Depreciation of revenue earning vehicles and lease charges | 497 | 2,030 | 2,563 |
Non-vehicle depreciation and amortization | 196 | 225 | 203 |
Selling, general and administrative | 688 | 645 | 949 |
Interest expense, net: | |||
Total interest expense, net | 469 | 606 | 798 |
Technology-related intangible and other asset impairments | 0 | 213 | 0 |
Write-off of intercompany loan | 0 | 133 | 0 |
Other (income) expense, net | (21) | (9) | (59) |
Reorganization items, net | 513 | 175 | 0 |
(Gain) from the sale of a business | (400) | 0 | 0 |
Total expenses | 5,862 | 7,441 | 9,759 |
Income (loss) before income taxes | 1,474 | (2,183) | 20 |
Income tax (provision) benefit | (318) | 328 | (65) |
Net income (loss) | 1,156 | (1,855) | (45) |
Net (income) loss attributable to noncontrolling interests | 1 | 9 | (8) |
Net income (loss) attributable to Hertz Global | 1,157 | (1,846) | (53) |
Vehicle | |||
Interest expense, net: | |||
Total interest expense, net | 284 | 455 | 494 |
Vehicle | The Hertz Corporation | |||
Interest expense, net: | |||
Total interest expense, net | 284 | 455 | 494 |
Non-vehicle | |||
Interest expense, net: | |||
Total interest expense, net | 185 | 153 | 311 |
Non-vehicle | The Hertz Corporation | |||
Interest expense, net: | |||
Total interest expense, net | $ 185 | $ 151 | $ 304 |
THC - CONSOLIDATED STATEMENTS_2
THC - CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - Non-vehicle $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Contractual Interest | $ 129 |
The Hertz Corporation | |
Contractual Interest | $ 129 |
HGH - CONSOLIDATED STATEMENTS_3
HGH - CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 365 | $ (1,723) | $ (50) |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | (36) | (19) | 6 |
Net gain (loss) on pension and postretirement benefit plans | 25 | (11) | (11) |
Reclassification from other comprehensive income (loss) to other (income) expense for amortization of actuarial net losses | 15 | 13 | 11 |
Total other comprehensive income (loss) before income taxes | 4 | (17) | 6 |
Income tax (provision) benefit related to pension and postretirement benefit plans | (3) | (4) | (1) |
Income tax (provision) benefit related to reclassified amounts of net periodic costs on pension and postretirement benefit plans | (3) | (2) | (2) |
Total other comprehensive income (loss) | (2) | (23) | 3 |
Total comprehensive income (loss) | 363 | (1,746) | (47) |
Comprehensive (income) loss attributable to noncontrolling interests | 1 | 9 | (8) |
Comprehensive income (loss) attributable to Hertz Global | $ 364 | $ (1,737) | $ (55) |
THC - CONSOLIDATED STATEMENTS_3
THC - CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Net income (loss) | $ 365 | $ (1,723) | $ (50) |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | (36) | (19) | 6 |
Net gain (loss) on pension and postretirement benefit plans | 25 | (11) | (11) |
Reclassification from other comprehensive income (loss) to other (income) expense for amortization of actuarial net losses | 15 | 13 | 11 |
Total other comprehensive income (loss) before income taxes | 4 | (17) | 6 |
Income tax (provision) benefit related to pension and postretirement benefit plans | (3) | (4) | (1) |
Income tax (provision) benefit related to reclassified amounts of net periodic costs on pension and postretirement benefit plans | (3) | (2) | (2) |
Total other comprehensive income (loss) | (2) | (23) | 3 |
Total comprehensive income (loss) | 363 | (1,746) | (47) |
Comprehensive (income) loss attributable to noncontrolling interests | 1 | 9 | (8) |
Comprehensive income (loss) attributable to Hertz Global | 364 | (1,737) | (55) |
The Hertz Corporation | |||
Net income (loss) | 1,156 | (1,855) | (45) |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | (36) | (19) | 6 |
Net gain (loss) on pension and postretirement benefit plans | 25 | (11) | (11) |
Reclassification from other comprehensive income (loss) to other (income) expense for amortization of actuarial net losses | 15 | 13 | 11 |
Total other comprehensive income (loss) before income taxes | 4 | (17) | 6 |
Income tax (provision) benefit related to pension and postretirement benefit plans | (3) | (4) | (1) |
Income tax (provision) benefit related to reclassified amounts of net periodic costs on pension and postretirement benefit plans | (3) | (2) | (2) |
Total other comprehensive income (loss) | (2) | (23) | 3 |
Total comprehensive income (loss) | 1,154 | (1,878) | (42) |
Comprehensive (income) loss attributable to noncontrolling interests | 1 | 9 | (8) |
Comprehensive income (loss) attributable to Hertz Global | $ 1,155 | $ (1,869) | $ (50) |
HGH - CONSOLIDATED STATEMENTS_4
HGH - CONSOLIDATED STATEMENTS OF CHANGES IN MEZZANINE EQUITY AND STOCKHOLDERS' EQUITY - USD ($) shares in Millions, $ in Millions | Total | Stockholders' Equity Attributable to Hertz Global | Preferred Stock Shares | Common Stock Shares | Additional Paid-In Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Non- controlling Interests | |
Beginning balance (in shares) at Dec. 31, 2018 | 0 | 84 | 2 | |||||||
Beginning balance at Dec. 31, 2018 | $ 0 | |||||||||
Ending balance (in shares) at Dec. 31, 2019 | 0 | 142 | 2 | |||||||
Ending balance at Dec. 31, 2019 | $ 0 | |||||||||
Beginning balance (in shares) at Dec. 31, 2018 | 0 | 84 | 2 | |||||||
Beginning balance at Dec. 31, 2018 | $ 1,120 | $ 1,061 | $ 1 | $ 2,261 | $ (909) | $ (192) | $ (100) | $ 59 | ||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Net income (loss) | (50) | (58) | (58) | 8 | ||||||
Other comprehensive income (loss) | 3 | 3 | 3 | |||||||
Net settlement on vesting of restricted stock | (3) | (3) | (3) | |||||||
Stock-based compensation charges | 18 | 18 | 18 | |||||||
Rights Offering, net (in shares) | 58 | |||||||||
Rights Offering, net | 748 | 748 | 748 | |||||||
Contributions from noncontrolling interests | 52 | 52 | ||||||||
Ending balance (in shares) at Dec. 31, 2019 | 0 | 142 | 2 | |||||||
Ending balance at Dec. 31, 2019 | 1,888 | 1,769 | $ 1 | 3,024 | (967) | (189) | $ (100) | 119 | ||
Ending balance (in shares) at Dec. 31, 2020 | 0 | 156 | 2 | |||||||
Ending balance at Dec. 31, 2020 | $ 0 | |||||||||
Beginning balance (in shares) at Dec. 31, 2019 | 0 | 142 | 2 | |||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Net income (loss) | (1,723) | (1,714) | (1,714) | (9) | ||||||
Other comprehensive income (loss) | (23) | (23) | (23) | |||||||
Net settlement on vesting of restricted stock | (3) | (3) | (3) | |||||||
Stock-based compensation charges | (2) | (2) | (2) | |||||||
ATM Program, net (in shares) | 14 | |||||||||
ATM Program, net | 29 | 29 | $ 1 | 28 | ||||||
Distributions to noncontrolling interests, net | (73) | (73) | ||||||||
Ending balance (in shares) at Dec. 31, 2020 | 0 | 156 | 2 | |||||||
Ending balance at Dec. 31, 2020 | 93 | 56 | $ 2 | 3,047 | (2,681) | (212) | $ (100) | 37 | ||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||||||
Preferred stock issuance, net (in shares) | 2 | |||||||||
Preferred stock issuance, net | 1,433 | 1,433 | $ 1,433 | |||||||
Repurchase of preferred stock, net (in shares) | (2) | |||||||||
Repurchase of preferred stock, net | (1,883) | (1,883) | $ (1,433) | (450) | ||||||
Ending balance (in shares) at Dec. 31, 2021 | 0 | 450 | 27 | |||||||
Ending balance at Dec. 31, 2021 | $ 0 | |||||||||
Beginning balance (in shares) at Dec. 31, 2020 | 0 | 156 | 2 | |||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Net income (loss) | 365 | 366 | 366 | (1) | ||||||
Other comprehensive income (loss) | (2) | (2) | (2) | |||||||
Stock-based compensation charges | 10 | 10 | 10 | |||||||
Rights Offering, net (in shares) | 181 | |||||||||
Rights Offering, net | 1,802 | 1,802 | $ 2 | 1,800 | ||||||
Distributions to noncontrolling interests, net | [1] | (36) | (36) | |||||||
Cancellation of stock-based awards | (10) | (10) | (10) | |||||||
Cancellation of common and treasury shares in exchange for new common shares (in shares) | (142) | (2) | ||||||||
Cancellation of common and treasury shares in exchange for new common shares | 0 | 0 | $ (2) | (98) | $ 100 | |||||
Distributions to common stockholders | (239) | (239) | (239) | |||||||
Contribution from Plan Sponsors (in shares) | 277 | |||||||||
Contributions from Plan Sponsors | 2,781 | 2,781 | $ 3 | 2,778 | ||||||
Public Warrant issuance | (800) | (800) | (800) | |||||||
Preferred stock issuance, net | 1,433 | 1,433 | $ 1,433 | |||||||
Repurchase of preferred stock, net | (1,883) | (1,883) | $ (1,433) | (450) | ||||||
Public Warrant exercises (in shares) | [2] | 5 | ||||||||
Public Warrant exercises | [2] | 180 | 180 | 180 | ||||||
Nasdaq listing and share repurchases (in shares) | [3] | (27) | 27 | |||||||
Nasdaq listing and share repurchases | [3] | (717) | (717) | (9) | $ (708) | |||||
Ending balance (in shares) at Dec. 31, 2021 | 0 | 450 | 27 | |||||||
Ending balance at Dec. 31, 2021 | $ 2,977 | $ 2,977 | $ 5 | $ 6,209 | $ (2,315) | $ (214) | $ (708) | $ 0 | ||
[1] | Effective October 31, 2021, the 767 lease agreement was terminated. See Note 3, "Divestitures." | |||||||||
[2] | The amounts presented herein may be rounded to agree to amounts in the audited consolidated balance sheet. Also see Note 18, "Public Warrants - Hertz Global." | |||||||||
[3] | See Registration Status of Stock Issued on the Effective Date and Nasdaq Listing and Share Repurchase Program for Common Stock in Note 16, "Equity and Mezzanine Equity – Hertz Global." |
THC - CONSOLIDATED STATEMENTS_4
THC - CONSOLIDATED STATEMENTS OF CHANGES IN MEZZANINE EQUITY AND STOCKHOLDERS' EQUITY - USD ($) $ in Millions | Total | The Hertz Corporation | Stockholders' Equity Attributable to Hertz Global | Stockholders' Equity Attributable to Hertz GlobalThe Hertz Corporation | Common Stock Shares | Common Stock SharesThe Hertz Corporation | Additional Paid-In Capital | Additional Paid-In CapitalThe Hertz Corporation | Due From AffiliateThe Hertz Corporation | Accumulated Deficit | Accumulated DeficitThe Hertz Corporation | Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss)The Hertz Corporation | Non- controlling Interests | Non- controlling InterestsThe Hertz Corporation | |||||
Beginning balance (in shares) at Dec. 31, 2018 | 84,000,000 | 100 | ||||||||||||||||||
Beginning balance at Dec. 31, 2018 | $ 1,120 | $ 1,118 | $ 1,061 | $ 1,059 | $ 1 | $ 0 | $ 2,261 | $ 3,187 | $ (52) | $ (909) | $ (1,884) | $ (192) | $ (192) | $ 59 | $ 59 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||||||||
Net income (loss) | (50) | (45) | (58) | (53) | (58) | (53) | 8 | 8 | ||||||||||||
Other comprehensive income (loss) | 3 | 3 | 3 | 3 | 3 | 3 | ||||||||||||||
Due from Hertz Holdings | (12) | (12) | (12) | |||||||||||||||||
Stock-based compensation charges | 18 | 18 | 18 | 18 | 18 | 18 | ||||||||||||||
Contributions from Hertz Holdings | 750 | 750 | 750 | |||||||||||||||||
Contributions from noncontrolling interests | 52 | 52 | 52 | 52 | ||||||||||||||||
Ending balance (in shares) at Dec. 31, 2019 | 142,000,000 | 100 | ||||||||||||||||||
Ending balance at Dec. 31, 2019 | 1,888 | 1,884 | 1,769 | 1,765 | $ 1 | $ 0 | 3,024 | 3,955 | (64) | (967) | (1,937) | (189) | (189) | 119 | 119 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||||||||
Net income (loss) | (1,723) | (1,855) | (1,714) | (1,846) | (1,714) | (1,846) | (9) | (9) | ||||||||||||
Other comprehensive income (loss) | (23) | (23) | (23) | (23) | (23) | (23) | ||||||||||||||
Due from Hertz Holdings | (4) | (4) | (4) | |||||||||||||||||
Stock-based compensation charges | (2) | (2) | (2) | (2) | (2) | (2) | ||||||||||||||
Liabilities subject to compromise | [1] | (65) | (65) | (65) | ||||||||||||||||
Write-off of intercompany loan | [1] | 133 | 133 | 133 | ||||||||||||||||
Distributions to noncontrolling interests, net | (73) | (73) | (73) | (73) | ||||||||||||||||
Ending balance (in shares) at Dec. 31, 2020 | 156,000,000 | 100 | ||||||||||||||||||
Ending balance at Dec. 31, 2020 | 93 | (5) | 56 | (42) | $ 2 | $ 0 | 3,047 | 3,953 | 0 | (2,681) | (3,783) | (212) | (212) | 37 | 37 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||||||||
Net income (loss) | 365 | 1,156 | 366 | 1,157 | 366 | 1,157 | (1) | (1) | ||||||||||||
Other comprehensive income (loss) | (2) | (2) | (2) | (2) | (2) | (2) | ||||||||||||||
Stock-based compensation charges | 10 | 10 | 10 | 10 | 10 | 10 | ||||||||||||||
Contributions from Hertz Holdings | 5,642 | 5,642 | 5,642 | |||||||||||||||||
Distributions to noncontrolling interests, net | (36) | [2] | (36) | [3] | (36) | [2] | (36) | [3] | ||||||||||||
Non-cash distribution | [1] | 65 | 65 | 65 | 0 | |||||||||||||||
Cancellation of stock-based awards | (10) | (10) | (10) | (10) | (10) | (10) | ||||||||||||||
Dividends to Hertz Holdings | (239) | (2,470) | (239) | (2,470) | (239) | (2,470) | ||||||||||||||
Ending balance (in shares) at Dec. 31, 2021 | 450,000,000 | 100 | ||||||||||||||||||
Ending balance at Dec. 31, 2021 | $ 2,977 | $ 4,350 | $ 2,977 | $ 4,350 | $ 5 | $ 0 | $ 6,209 | $ 7,190 | $ 0 | $ (2,315) | $ (2,626) | $ (214) | $ (214) | $ 0 | $ 0 | |||||
[1] | See Note 15, "Related Party Transactions." | |||||||||||||||||||
[2] | Effective October 31, 2021, the 767 lease agreement was terminated. See Note 3, "Divestitures." | |||||||||||||||||||
[3] | Effective October 31, 2021, the 767 lease agreement was terminated. See Note 3, "Divestitures." |
HGH - CONSOLIDATED STATEMENTS_5
HGH - CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||||
Cash flows from operating activities: | |||||||
Net income (loss) | $ 365 | $ (1,723) | $ (50) | ||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||
Depreciation and reserves for revenue earning vehicles | 600 | 2,259 | 2,791 | ||||
Depreciation and amortization, non-vehicle | 196 | 225 | 203 | ||||
Amortization of deferred financing costs and debt discount (premium) | 122 | 59 | 52 | ||||
Loss on extinguishment of debt | 8 | 5 | 43 | ||||
Stock-based compensation charges | 10 | (2) | 18 | ||||
Provision for receivables allowance | 125 | 94 | 53 | ||||
Deferred income taxes, net | 270 | (353) | 27 | ||||
Technology-related intangible and other asset impairments | 0 | 213 | 0 | ||||
Reorganization items, net | 314 | 8 | 0 | ||||
(Gain) from the sale of a business | (400) | 0 | 0 | ||||
(Gain) loss on marketable securities | 0 | 0 | (30) | ||||
(Gain) loss on sale of non-vehicle capital assets | (8) | (24) | (39) | ||||
Change in fair value of Public Warrants | 627 | 0 | 0 | ||||
Other | (5) | 5 | (9) | ||||
Changes in assets and liabilities: | |||||||
Non-vehicle receivables | (210) | 195 | (88) | ||||
Prepaid expenses and other assets | (20) | 92 | (8) | ||||
Operating lease right-of-use assets | 274 | 366 | 402 | ||||
Non-vehicle accounts payable | (70) | 98 | 65 | ||||
Accrued liabilities | (108) | (61) | (98) | ||||
Accrued taxes, net | 24 | (52) | 14 | ||||
Operating lease liabilities | (291) | (375) | (428) | ||||
Self-insured liabilities | (17) | (76) | (18) | ||||
Net cash provided by (used in) operating activities | 1,806 | 953 | 2,900 | ||||
Cash flows from investing activities: | |||||||
Revenue earning vehicles expenditures | (7,154) | (5,542) | (13,714) | ||||
Proceeds from disposal of revenue earning vehicles | 2,818 | 10,098 | 9,486 | ||||
Non-vehicle capital asset expenditures | (71) | (98) | (224) | ||||
Proceeds from non-vehicle capital assets disposed of or to be disposed of | 16 | 60 | 27 | ||||
Sales of marketable securities | 0 | 74 | 0 | ||||
Collateral payments | (303) | 0 | 0 | ||||
Collateral returned in exchange for letters of credit | 280 | 0 | 0 | ||||
Proceeds from the sale of a business, net of cash sold | 871 | 0 | 0 | ||||
Other | (1) | (1) | 0 | ||||
Net cash provided by (used in) investing activities | (3,544) | 4,591 | (4,425) | ||||
Cash flows from financing activities: | |||||||
Payment of financing costs | (185) | (75) | (53) | ||||
Proceeds from Plan Sponsors | 2,781 | 0 | 0 | ||||
Early redemption premium payment | (85) | 0 | (34) | ||||
Proceeds from issuance of common stock, net | 0 | 28 | 0 | ||||
Proceeds from exercises of Public Warrants | 77 | 0 | 0 | ||||
Proceeds from the issuance of preferred stock, net | 1,433 | 0 | 0 | ||||
Distributions to common stockholders | (239) | 0 | 0 | ||||
Contributions from (distributions to) noncontrolling interests | (38) | (75) | 49 | ||||
Proceeds from rights offerings, net | 1,639 | 0 | 748 | ||||
Share repurchases | (654) | 0 | 0 | ||||
Repurchase of preferred stock | (1,883) | 0 | 0 | ||||
Payments for Nasdaq listing costs | (9) | 0 | 0 | ||||
Other | 0 | (2) | (3) | ||||
Net cash provided by (used in) financing activities | 2,845 | (5,372) | 1,474 | ||||
Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents | (34) | 46 | 1 | ||||
Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents during the period | 1,073 | 218 | (50) | ||||
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period | 1,507 | 1,360 | [1] | 1,410 | [1] | ||
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period | 2,651 | [1] | 1,507 | 1,360 | [1] | ||
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period | [1] | 1,578 | |||||
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period | [1] | 1,578 | |||||
Cash paid during the period for: | |||||||
Income taxes, net of refunds | 40 | (11) | 21 | ||||
Operating lease liabilities | 472 | 546 | 575 | ||||
Supplemental disclosures of non-cash information: | |||||||
Purchases of revenue earning vehicles included in accounts payable, net of incentives | 27 | 9 | 165 | ||||
Sales of revenue earning vehicles included in vehicle receivables | 33 | 144 | 667 | ||||
Fleet payables included in liabilities subject to compromise | 0 | 2 | 0 | ||||
Purchases of non-vehicle capital assets included in accounts payable | 24 | 7 | 40 | ||||
Revenue earning vehicles and non-vehicle capital assets acquired through capital leases | 79 | 32 | 23 | ||||
Purchases of non-vehicle capital assets included in liabilities subject to compromise | 0 | 18 | 0 | ||||
Operating lease right-of-use assets obtained in exchange for lease liabilities | 177 | 152 | 680 | ||||
Public Warrant issuance | 800 | 0 | 0 | ||||
Public Warrant exercises | 103 | 0 | 0 | ||||
Backstop equity issuance | 164 | 0 | 0 | ||||
Accrual for purchases of treasury shares | 54 | 0 | 0 | ||||
Vehicle | |||||||
Cash flows from financing activities: | |||||||
Proceeds from issuance of debt | 14,323 | 4,546 | 13,013 | ||||
Repayments of debt | (12,607) | (10,751) | (11,530) | ||||
Cash paid during the period for: | |||||||
Interest, net of amounts capitalized: | 257 | 335 | 431 | ||||
Non-vehicle | |||||||
Cash flows from financing activities: | |||||||
Proceeds from issuance of debt | 4,644 | 1,812 | 3,016 | ||||
Repayments of debt | (6,352) | (855) | (3,732) | ||||
Cash paid during the period for: | |||||||
Interest, net of amounts capitalized: | $ 198 | $ 109 | $ 272 | ||||
[1] | Amounts include cash and cash equivalents and restricted cash and cash equivalents which were held for sale as of December 31, 2020, prior to the completion of the Donlen Sale in the first quarter of 2021, as described in Note 3 , " Divestitures." |
THC - CONSOLIDATED STATEMENTS_5
THC - CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||||
Cash flows from operating activities: | |||||||
Net income (loss) | $ 365 | $ (1,723) | $ (50) | ||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||
Depreciation and reserves for revenue earning vehicles | 600 | 2,259 | 2,791 | ||||
Depreciation and amortization, non-vehicle | 196 | 225 | 203 | ||||
Amortization of deferred financing costs and debt discount (premium) | 122 | 59 | 52 | ||||
Loss on extinguishment of debt | 8 | 5 | 43 | ||||
Stock-based compensation charges | 10 | (2) | 18 | ||||
Provision for receivables allowance | 125 | 94 | 53 | ||||
Deferred income taxes, net | 270 | (353) | 27 | ||||
Technology-related intangible and other asset impairments | 0 | 213 | 0 | ||||
Reorganization items, net | 314 | 8 | 0 | ||||
(Gain) from the sale of a business | (400) | 0 | 0 | ||||
(Gain) loss on marketable securities | 0 | 0 | (30) | ||||
(Gain) loss on sale of non-vehicle capital assets | (8) | (24) | (39) | ||||
Other | (5) | 5 | (9) | ||||
Changes in assets and liabilities: | |||||||
Non-vehicle receivables | (210) | 195 | (88) | ||||
Prepaid expenses and other assets | (20) | 92 | (8) | ||||
Operating lease right-of-use assets | 274 | 366 | 402 | ||||
Non-vehicle accounts payable | (70) | 98 | 65 | ||||
Accrued liabilities | (108) | (61) | (98) | ||||
Accrued taxes, net | 24 | (52) | 14 | ||||
Operating lease liabilities | (291) | (375) | (428) | ||||
Self-insured liabilities | (17) | (76) | (18) | ||||
Net cash provided by (used in) operating activities | 1,806 | 953 | 2,900 | ||||
Cash flows from investing activities: | |||||||
Revenue earning vehicles expenditures | (7,154) | (5,542) | (13,714) | ||||
Proceeds from disposal of revenue earning vehicles | 2,818 | 10,098 | 9,486 | ||||
Non-vehicle capital asset expenditures | (71) | (98) | (224) | ||||
Proceeds from non-vehicle capital assets disposed of or to be disposed of | 16 | 60 | 27 | ||||
Sales of marketable securities | 0 | 74 | 0 | ||||
Collateral payments | (303) | 0 | 0 | ||||
Collateral returned in exchange for letters of credit | 280 | 0 | 0 | ||||
Proceeds from the sale of a business, net of cash sold | 871 | 0 | 0 | ||||
Other | (1) | (1) | 0 | ||||
Net cash provided by (used in) investing activities | (3,544) | 4,591 | (4,425) | ||||
Cash flows from financing activities: | |||||||
Payment of financing costs | (185) | (75) | (53) | ||||
Early redemption premium payment | (85) | 0 | (34) | ||||
Contributions from (distributions to) noncontrolling interests | (38) | (75) | 49 | ||||
Net cash provided by (used in) financing activities | 2,845 | (5,372) | 1,474 | ||||
Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents | (34) | 46 | 1 | ||||
Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents during the period | 1,073 | 218 | (50) | ||||
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period | 1,507 | 1,360 | [1] | 1,410 | [1] | ||
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period | 2,651 | [1] | 1,507 | 1,360 | [1] | ||
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period | [1] | 1,578 | |||||
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period | [1] | 1,578 | |||||
Cash paid during the period for: | |||||||
Income taxes, net of refunds | 40 | (11) | 21 | ||||
Operating lease liabilities | 472 | 546 | 575 | ||||
Supplemental disclosures of non-cash information: | |||||||
Purchases of revenue earning vehicles included in accounts payable, net of incentives | 27 | 9 | 165 | ||||
Sales of revenue earning vehicles included in vehicle receivables | 33 | 144 | 667 | ||||
Fleet payables included in liabilities subject to compromise | 0 | 2 | 0 | ||||
Purchases of non-vehicle capital assets included in accounts payable | 24 | 7 | 40 | ||||
Revenue earning vehicles and non-vehicle capital assets acquired through capital leases | 79 | 32 | 23 | ||||
Purchases of non-vehicle capital assets included in liabilities subject to compromise | 0 | 18 | 0 | ||||
Operating lease right-of-use assets obtained in exchange for lease liabilities | 177 | 152 | 680 | ||||
The Hertz Corporation | |||||||
Cash flows from operating activities: | |||||||
Net income (loss) | 1,156 | (1,855) | (45) | ||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||
Depreciation and reserves for revenue earning vehicles | 600 | 2,259 | 2,791 | ||||
Depreciation and amortization, non-vehicle | 196 | 225 | 203 | ||||
Amortization of deferred financing costs and debt discount (premium) | 122 | 59 | 52 | ||||
Loss on extinguishment of debt | 8 | 5 | 43 | ||||
Stock-based compensation charges | 10 | (2) | 18 | ||||
Provision for receivables allowance | 125 | 94 | 53 | ||||
Deferred income taxes, net | 270 | (353) | 28 | ||||
Technology-related intangible and other asset impairments | 0 | 213 | 0 | ||||
Write-off of intercompany loan | 0 | 133 | 0 | ||||
Reorganization items, net | 150 | 8 | 0 | ||||
(Gain) from the sale of a business | (400) | 0 | 0 | ||||
(Gain) loss on marketable securities | 0 | 0 | (30) | ||||
(Gain) loss on sale of non-vehicle capital assets | (8) | (24) | (39) | ||||
Other | (5) | 5 | (8) | ||||
Changes in assets and liabilities: | |||||||
Non-vehicle receivables | (210) | 195 | (88) | ||||
Prepaid expenses and other assets | (20) | 94 | (8) | ||||
Operating lease right-of-use assets | 274 | 366 | 402 | ||||
Non-vehicle accounts payable | (70) | 98 | 65 | ||||
Accrued liabilities | (108) | (61) | (98) | ||||
Accrued taxes, net | 24 | (52) | 14 | ||||
Operating lease liabilities | (291) | (375) | (428) | ||||
Self-insured liabilities | (17) | (76) | (18) | ||||
Net cash provided by (used in) operating activities | 1,806 | 956 | 2,907 | ||||
Cash flows from investing activities: | |||||||
Revenue earning vehicles expenditures | (7,154) | (5,542) | (13,714) | ||||
Proceeds from disposal of revenue earning vehicles | 2,818 | 10,098 | 9,486 | ||||
Non-vehicle capital asset expenditures | (71) | (98) | (224) | ||||
Proceeds from non-vehicle capital assets disposed of or to be disposed of | 16 | 60 | 27 | ||||
Sales of marketable securities | 0 | 74 | 0 | ||||
Collateral payments | (303) | 0 | 0 | ||||
Collateral returned in exchange for letters of credit | 280 | 0 | 0 | ||||
Proceeds from the sale of a business, net of cash sold | 871 | 0 | 0 | ||||
Other | (1) | (1) | 0 | ||||
Net cash provided by (used in) investing activities | (3,544) | 4,591 | (4,425) | ||||
Cash flows from financing activities: | |||||||
Payment of financing costs | (185) | (75) | (53) | ||||
Early redemption premium payment | (85) | 0 | (34) | ||||
Advances to Hertz Holdings | 0 | (5) | (12) | ||||
Contributions from (distributions to) noncontrolling interests | (38) | (75) | 49 | ||||
Dividends paid to Hertz Holdings | (2,470) | 0 | 0 | ||||
Contributions from Hertz Holdings | 5,642 | 0 | 750 | ||||
Net cash provided by (used in) financing activities | 2,872 | (5,403) | 1,467 | ||||
Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents | (34) | 46 | 1 | ||||
Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents during the period | 1,100 | 190 | (50) | ||||
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period | 1,479 | 1,360 | [2] | 1,410 | [2] | ||
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period | 2,650 | [2] | 1,479 | 1,360 | [2] | ||
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period | [2] | 1,550 | |||||
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period | [2] | 1,550 | |||||
Cash paid during the period for: | |||||||
Income taxes, net of refunds | 40 | (11) | 21 | ||||
Operating lease liabilities | 472 | 546 | 575 | ||||
Supplemental disclosures of non-cash information: | |||||||
Purchases of revenue earning vehicles included in accounts payable, net of incentives | 27 | 9 | 165 | ||||
Sales of revenue earning vehicles included in vehicle receivables | 33 | 144 | 667 | ||||
Fleet payables included in liabilities subject to compromise | 0 | 2 | 0 | ||||
Purchases of non-vehicle capital assets included in accounts payable | 24 | 7 | 40 | ||||
Revenue earning vehicles and non-vehicle capital assets acquired through capital leases | 79 | 32 | 23 | ||||
Purchases of non-vehicle capital assets included in liabilities subject to compromise | 0 | 18 | 0 | ||||
Operating lease right-of-use assets obtained in exchange for lease liabilities | 177 | 152 | 680 | ||||
Non-cash capital contribution from Hertz Holdings | 65 | 0 | 0 | ||||
Vehicle | |||||||
Cash flows from financing activities: | |||||||
Proceeds from issuance of debt | 14,323 | 4,546 | 13,013 | ||||
Repayments of debt | (12,607) | (10,751) | (11,530) | ||||
Cash paid during the period for: | |||||||
Interest, net of amounts capitalized: | 257 | 335 | 431 | ||||
Vehicle | The Hertz Corporation | |||||||
Cash flows from financing activities: | |||||||
Proceeds from issuance of debt | 14,323 | 4,546 | 13,013 | ||||
Repayments of debt | (12,607) | (10,751) | (11,530) | ||||
Cash paid during the period for: | |||||||
Interest, net of amounts capitalized: | 257 | 335 | 431 | ||||
Non-vehicle | |||||||
Cash flows from financing activities: | |||||||
Proceeds from issuance of debt | 4,644 | 1,812 | 3,016 | ||||
Repayments of debt | (6,352) | (855) | (3,732) | ||||
Cash paid during the period for: | |||||||
Interest, net of amounts capitalized: | 198 | 109 | 272 | ||||
Non-vehicle | The Hertz Corporation | |||||||
Cash flows from financing activities: | |||||||
Proceeds from issuance of debt | 4,644 | 1,812 | 3,016 | ||||
Repayments of debt | (6,352) | (855) | (3,732) | ||||
Cash paid during the period for: | |||||||
Interest, net of amounts capitalized: | $ 198 | $ 109 | $ 272 | ||||
[1] | Amounts include cash and cash equivalents and restricted cash and cash equivalents which were held for sale as of December 31, 2020, prior to the completion of the Donlen Sale in the first quarter of 2021, as described in Note 3 , " Divestitures." | ||||||
[2] | Amounts include cash and cash equivalents and restricted cash and cash equivalents which were held for sale as of December 31, 2020, prior to the completion of the Donlen Sale in the first quarter of 2021, as described in Note 3 , " Divestitures ." |
Background
Background | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Background | BackgroundHertz Global Holdings, Inc. 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 Global's primary operating company. Hertz was incorporated in Delaware in 1967 and is a successor to corporations that have been engaged in the vehicle rental and leasing business since 1918. Hertz operates its vehicle rental business globally primarily through the Hertz, Dollar and Thrifty brands from company-owned, licensee and franchisee locations in the U.S., Africa, Asia, Australia, Canada, the Caribbean, Europe, Latin America, the Middle East and New Zealand. The Company also sells vehicles through Hertz Car Sales and operates the Firefly vehicle rental brand and Hertz 24/7 car sharing business in international markets. As disclosed in Note 3, "Divestitures," on March 30, 2021 the Company completed the Donlen Sale, a business which provided vehicle leasing and fleet management services. Chapter 11 and Emergence In March 2020, the World Health Organization declared COVID-19 a global pandemic. In response to COVID-19, local and national governments around the world instituted shelter-in-place and similar orders and travel restrictions, and airline and other travel decreased suddenly and dramatically. As a result of the impact of COVID-19 and the associated government responses on travel demand, late in the first quarter of 2020, the Company experienced a high level of rental cancellations and a significant decline in forward bookings. In response, the Company began aggressive actions to eliminate costs. However, it faced significant ongoing expenses, including a large lease payment with respect to its vehicle fleet that increased as a result of COVID-19's impact on the car market. On the Petition Date, the Debtors filed petitions for relief under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court. The Chapter 11 Cases were jointly administered for procedural purposes only under the caption In re The Hertz Corporation, et al., Case No. 20-11218 (MFW) . While in Chapter 11, the Debtors operated as debtors-in-possession under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and orders of the Bankruptcy Court. In general, as debtors-in-possession under the Bankruptcy Code, the Debtors were authorized to continue to operate as an ongoing business but could not engage in transactions outside the ordinary course of business without the prior approval of the Bankruptcy Court. On May 14, 2021, the Debtors filed the Plan of Reorganization, and the solicitation version of the Supplement to the Disclosure Statement which was approved by the Bankruptcy Court on May 14, 2021. On June 10, 2021, the Plan of Reorganization was confirmed by the Bankruptcy Court. On the Effective Date, the Plan of Reorganization became effective in accordance with its terms and the Debtors emerged from Chapter 11. On the Effective Date, as a result of the Plan of Reorganization, the reorganized Company received cash proceeds of $7.5 billion comprised of: • $2.8 billion from the purchase of common stock in reorganized Hertz Global by the Plan Sponsors and certain other investment funds and entities; • $1.6 billion from the purchase of common stock in reorganized Hertz Global pursuant to the 2021 Rights Offering; • $1.5 billion (less a 2% upfront discount and stock issuance fees) from the purchase of preferred stock of reorganized Hertz Global by Apollo; and • $1.5 billion in proceeds from the Company's secured exit term loan facilities (the "Term Loans"). Such cash proceeds were used, in part, to provide payments to the Company's stakeholders pursuant to the terms of the Plan of Reorganization as follows: • the holders of administrative, priority and secured claims received payment in cash in full; • the holders of the approximately $1.0 billion of obligations owed with respect to the Company's DIP Credit Agreement received payment in cash in full; • the holders of the Company's Senior Term Loan, Senior RCF and Letter of Credit Facility received payment in cash in full with respect to all non-contingent liquidated claims; • the holders of claims with respect to the Senior Second Priority Secured Notes received payment in cash in full; • the holders of the Company's €725 million European Vehicle Notes received payment in cash in full; • the holders of the €257 million term loan facility incurred by Hertz International Ltd. received payment in cash in full; • the holders of claims with respect to the unsecured Senior Notes and the holders of claims with respect to the Alternative Letter of Credit Facility received payment in cash with respect to (i) all remaining principal, (ii) accrued and unpaid interest as of the Petition Date at the contract rate, and (iii) accrued and unpaid interest from the Petition Date to the Effective Date at the federal judgment rate (at such rate in effect as of the Petition Date), subject to the rights of creditors (if any) to bring a claim for the payment of additional interest and/or premiums, as further disclosed in Note 6, "Debt;" and • the holders of general unsecured claims will receive payment in cash in full plus interest at the federal judgment rate from the Petition Date to the date of payment (at such rate in effect as of the Petition Date), subject to the rights of creditors to bring a claim for payment of additional interest. All of the Hertz Global equity interests existing as of the Effective Date were cancelled on such date in accordance with the Plan of Reorganization with existing equity holders receiving (i) cash in the amount of $1.53 per share of existing interests, (ii) their pro rata share of 3% of the common shares of reorganized Hertz Global, subject to dilution, and (iii) either Public Warrants, for in the aggregate of up to 18% of reorganized Hertz Global common stock issued and outstanding on the Effective Date, subject to dilution and certain conditions, or subscription rights to participate in the 2021 Rights Offering as disclosed below. In accordance with the Plan of Reorganization, Hertz Global commenced a 2021 Rights Offering, under which eligible holders of Hertz Global's common stock and certain eligible holders of the Company's Senior Notes and lenders under the Alternative Letter of Credit Facility could purchase up to $1.6 billion of shares of reorganized Hertz Global common stock at a purchase price of $10.00 per share. Pursuant to the EPCA, certain parties agreed to purchase all unsubscribed shares in the 2021 Rights Offering (the "Backstop Parties"). The final expiration date for the 2021 Rights Offering occurred on June 15, 2021, with eligible holders subscribing to purchase 127,362,114 shares (approximately $1.3 billion), with the Backstop Parties to purchase the remaining 36,137,887 shares (approximately $361 million). Hertz Global closed the 2021 Rights Offering upon emergence from the Chapter 11 Cases on the Effective Date. Pursuant to the terms of the EPCA, the Backstop Parties received a backstop fee equal in the amount of $164 million (payable in shares of reorganized Hertz Global common stock valued at $10.00 per share). As a result of these transactions, on the Effective Date, Hertz Global issued 471,102,462 shares of common stock as follows: • 14,133,024 shares to existing stockholders; • 277,119,438 shares to Plan Sponsors pursuant to the EPCA; • 127,362,114 shares to eligible participants pursuant to the Rights Offering; and • 52,487,886 shares to the Backstop Parties pursuant to the EPCA. During the third quarter of 2021, the Company issued additional shares pursuant to the rounding provisions of the 2021 Rights Offering for cash proceeds of approximately $4 million at a purchase price of $10.00. On the Effective Date, in accordance with the Plan of Reorganization, reorganized Hertz Global issued 1,500,000 shares of preferred stock to Apollo and received gross proceeds of $1.5 billion, less a 2% upfront discount and stock issuance fees. During the fourth quarter of 2021, all 1,500,000 shares of the Series A Preferred Stock were repurchased and retired by Hertz Global at $1,250 per share. On the Effective Date, in accordance with the Plan of Reorganization, reorganized Hertz Global entered into a public warrant agreement (the "Public Warrant Agreement") and issued 89,049,029 Public Warrants, subject to certain conditions. The Public Warrants are exercisable from the date of issuance until June 30, 2051 at which time all unexercised Public Warrants will expire and the rights of the holders of such expired Public Warrants will terminate. The Public Warrants had an initial exercise price of $13.80 and are subject to adjustment from time to time upon the occurrence of any payments of cash dividends, certain dilutive events, and recurring fair value adjustments (See Note 12, "Fair Value Measurements"). See Note 16, "Equity and Mezzanine Equity – Hertz Global," and Note 18, "Public Warrants - Hertz Global," for additional information on the new equity and Public Warrants issued upon the Company's Chapter 11 emergence. On the Effective Date, the reorganized Company entered into the First Lien Credit Agreement in an aggregate amount of $2.8 billion comprised of senior secured term loan facilities in an aggregate principal amount of $1.5 billion plus the First Lien RCF in an aggregate committed amount of $1.3 billion. Additionally, the reorganized Company entered into a new ABS facility program with an aggregate principal amount of $6.8 billion comprised of variable funding notes with a principal amount up to $2.8 billion and medium term notes in an aggregate principal amount of $4.0 billion. On the Effective Date, substantially all existing non-vehicle debt and all existing ABS facilities under the HVF II U.S. ABS Program were repaid in full and terminated in accordance with the Plan of Reorganization. See Note 6, "Debt," for additional information. NYSE Delisting and Nasdaq Listing As a result of the filing of the Chapter 11 Cases, the NYSE suspended trading of Hertz Global common stock after the market close on October 29, 2020. On October 30, 2020, Hertz Global common stock began trading exclusively on the OTC market under the symbol "HTZGQ," and was delisted from the NYSE on November 10, 2020. Upon deregistration of Hertz Global common stock under Section 12(b) of the Exchange Act, Hertz Global common stock remained registered under Section 12(g) of the Exchange Act. As discussed above, on the Effective Date, all of the Hertz Global common stock then existing was cancelled and Hertz Global issued 471,102,462 shares of its new common stock pursuant to the Plan of Reorganization. On November 8, 2021, reorganized Hertz Global successfully completed its Nasdaq listing, in which shares of its new common stock were registered with the SEC for a public offering by certain selling stockholders. On November 9, 2021, reorganized Hertz Global's common stock and Public Warrants began trading on Nasdaq under the trading symbols "HTZ" and "HTZWW," respectively. See Note 16 , " Equity and Mezzanine Equity – Hertz Global." Going Concern The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern and contemplate the realization of assets and the satisfaction of liabilities in the normal course of business. During the Chapter 11 Cases, the Company’s ability to continue as a going concern was contingent upon the Company’s ability to successfully implement the Company’s Plan of Reorganization, among other factors. As a result of the implementation of the Plan of Reorganization, management believes there is no longer substantial doubt about the Company's ability to continue as a going concern. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Accounting Principles The Company’s consolidated financial statements have been prepared in accordance with U.S. GAAP. Reclassifications Certain prior period amounts have been reclassified to conform with current period presentation. Non-vehicle depreciation expense is now reported on a separate line item in the consolidated statement of operations for all periods presented. Principles of Consolidation The consolidated financial statements of Hertz Global include the accounts of Hertz Global, its wholly-owned and majority owned U.S. and international subsidiaries, and its VIEs, as applicable. The consolidated financial statements of Hertz include the accounts of Hertz, its wholly-owned and majority-owned U.S. and international subsidiaries, and its VIEs, as applicable. The Company consolidates a VIE when it is deemed the primary beneficiary. 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 are eliminated in consolidation. Accounting Standards Codification 852 - Reorganizations Effective on the Petition Date, the Company applied accounting standards applicable to reorganizations, Accounting Standards Codification ("ASC") 852 - Reorganizations ("Topic 852"), in preparing its consolidated financial statements, which required the financial statements, for periods subsequent to the commencement of the Chapter 11 Cases, to distinguish transactions and events that were directly associated with the reorganization from the ongoing operations of the business. Accordingly, Pre-petition obligations of the Debtors that were subject to the Chapter 11 Cases were classified as liabilities subject to compromise in the accompanying consolidated balance sheet as of December 31, 2020. These liabilities were reported at the amounts the Company anticipated would be allowed by the Bankruptcy Court, even if they were subject to settlement at lesser amounts. See Note 20, "Liabilities Subject to Compromise," for additional information. In addition, certain charges related to the Chapter 11 Cases were recorded as reorganization items, net in the accompanying consolidated statements of operations for the years ended December 31, 2021 and 2020. See Note 21, "Reorganization Items, Net," for additional information. Under Topic 852, companies must apply “fresh-start” accounting rules upon emergence from Chapter 11 reorganization if certain conditions are met. The Company did not qualify for "fresh-start" accounting under Topic 852 upon emergence from Chapter 11. Use of Estimates and Assumptions 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 consolidated financial statements and footnotes. Actual results could differ materially from those estimates. Significant estimates inherent in the preparation of the consolidated financial statements include depreciation of revenue earning vehicles, reserves for litigation and other contingencies, accounting for income taxes and related uncertain tax positions, pension and postretirement benefit costs, the recoverability of long-lived assets, useful lives and impairment of long-lived tangible and intangible assets including goodwill, valuation of stock-based compensation, self-insured liabilities, allowance for doubtful accounts, the retail value of loyalty points, and fair value of financial instruments, among others. Revenue Earning Vehicles Revenue earning vehicles are stated at cost, net of related discounts and incentives from manufacturers. Holding periods typically range from six associated with disposals, are included in depreciation of revenue earning vehicles and lease charges in the accompanying consolidated statements of operations. For program vehicles, the manufacturers agree to repurchase program vehicles at a specified price or guarantee the depreciation rate on the vehicles during established repurchase or auction periods, subject to, among other things, certain vehicle condition, mileage and holding period requirements. Guaranteed depreciation programs guarantee on an aggregate basis the residual value of the program vehicle upon sale according to certain parameters which include the holding period, mileage and condition of the vehicles. The Company records a provision in accumulated depreciation for excess mileage and vehicle condition, as necessary, during the holding period. Donlen's revenue earning vehicles were leased under long term agreements with its customers. These leases contained provisions whereby Donlen had a contracted residual value guaranteed by the lessee, such that it did not bear the risk of any gains or losses on the disposal of these vehicles. Donlen accounted for its lease contracts using the appropriate lease classifications. The Donlen business was sold on March 30, 2021, as disclosed in Note 3 , " Divestitures ." The Company continually evaluates revenue earning vehicles to determine whether events or changes in circumstances have occurred that may warrant revision of the residual value or holding period. Self-insured Liabilities Self-insured liabilities in the accompanying consolidated balance sheets include public liability, property damage, general liability, liability insurance supplement, personal accident insurance, and worker's compensation. These represent an estimate for both reported accident claims not yet paid, and claims incurred but not yet reported and are recorded on an undiscounted 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 and administrative costs. The adequacy of the liability is regularly monitored based on evolving accident claim history and insurance related state legislation changes. If the Company's estimates change or if actual results differ from these assumptions, the amount of the recorded liability is adjusted to reflect these results. Recoverability of Goodwill and Indefinite-lived Intangible Assets The Company tests the recoverability of its goodwill and indefinite-lived intangible assets by performing an impairment analysis on an annual basis, as of October 1, and at interim periods when circumstances require as a result of a triggering event. A goodwill impairment charge is calculated as the amount by which a reporting unit's carrying amount exceeds its fair value. For goodwill, fair value is determined using an income approach based on the discounted cash flows of each reporting unit. A reporting unit is an operating segment or a business one level below that operating segment (the component level) if discrete financial information is prepared and regularly reviewed by segment management. Components are aggregated into a single reporting unit when they have similar economic characteristics. In the second quarter of 2021, in connection with the Chapter 11 Emergence as disclosed in Note 1 , " Background," and changes in how the Company's CODM regularly reviews operating results and allocates resources, the Company revised its reportable segments to include Canada, Latin America and the Caribbean in its Americas RAC reportable segment, which were previously included in its International RAC reportable segment. Accordingly, prior periods have been restated to conform with the revised presentation. The Company has identified two 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: Americas RAC and International RAC. The fair values of the reporting units are estimated using the net present value of discounted cash flows generated by each reporting unit and incorporate various assumptions related to discount rates, growth rates, cash flow projections, tax rates and terminal value rates specific to the reporting unit to which they are applied. Discount rates are set by using the WACC methodology. The Company’s discounted cash flows are based upon reasonable and appropriate assumptions about the underlying business activities of the Company’s reporting units. In the impairment analysis for an indefinite-lived intangible asset, the Company compares the carrying value of the asset to its estimated fair value and recognizes an impairment charge whenever the carrying amount of the asset exceeds its estimated fair value. The estimated fair value for a tradename utilizes a relief-from-royalty income approach, which includes the Company’s revenue projections for each asset, along with assumptions for royalty rates, tax rates and WACC. Income Taxes The Company recognized the effects of the TCJA enacted on December 22, 2017, which created the global intangible low-tax income ("GILTI") provision that imposes U.S. tax on certain earnings of foreign subsidiaries that are subject to foreign tax below a certain threshold. GILTI taxes are recorded in current income tax expense as incurred. In 2018 and 2019, the Company asserted indefinite reinvestment on certain of its foreign earnings. Effective as of December 31, 2020, the Company no longer asserts permanent reinvestment of foreign earnings, due to the impact from COVID-19, as disclosed in Note 1, "Background." Valuation Allowances The Company’s current and future provision for income taxes is impacted by the initial recognition of and changes in valuation allowances in certain jurisdictions. The Company intends to maintain these allowances until it is more likely than not that the deferred tax assets will be realized. The Company’s future provision for income taxes will include no tax benefit with respect to losses incurred in these jurisdictions. Accordingly, income taxes are impacted by changes in valuation allowances and the mix of earnings among jurisdictions. The Company evaluates the realizability of its deferred tax assets on a quarterly basis. In completing this evaluation, the Company considers all available evidence in order to determine whether, based on the weight of the evidence, a valuation allowance for its deferred tax assets is necessary. Such evidence includes the evaluation of historical cumulative earnings and losses in recent years, future reversals of deferred tax liabilities, the availability of carry forwards and the remaining period of the respective carry forward, future taxable income (exclusive of the reversal of temporary differences and carryforwards), and any applicable tax-planning strategies that are available. If, based on the weight of the evidence, it is more likely than not that all or a portion of the Company’s deferred tax assets will not be realized, a valuation allowance is recorded. If operating results improve or decline on a continual basis in a particular jurisdiction, the Company’s decision regarding the need for a valuation allowance could change resulting in either the initial recognition or reversal of a valuation allowance in that jurisdiction, which could have a significant impact on income tax expense in the period recognized and subsequent periods. In determining the provision for income taxes for financial statement purposes, the Company makes certain estimates and judgments, which affect its evaluation of the carrying value of its deferred tax assets, as well as its calculation of certain tax liabilities. Uncertain Tax Positions The calculation of the Company’s gross unrecognized tax benefits and liabilities includes uncertainties in the application of, and changes in, complex tax regulations in a multitude of jurisdictions across its global operations. The Company recognizes tax benefits and liabilities based on its estimates of whether, and the extent to which, additional taxes will be due. The Company adjusts these benefits and liabilities based on changing facts and circumstances; however, due to the complexity of these uncertainties and the impact of tax audits, the ultimate resolutions may differ significantly from the Company’s estimates. Revenue Recognition In February 2016, the FASB issued guidance that replaced the existing lease guidance in U.S. GAAP and in 2018 and 2019 issued amendments and updates to the new lease standard (collectively "Topic 842"). Upon adoption of Topic 842, on January 1, 2019, the Company accounts for revenue earned from vehicle rentals and rental related activities wherein an identified asset is transferred to the customer and the customer has the ability to control that asset under Topic 842, as further updated in 2021. The Company recognizes two types of revenue: (i) lease revenue; and (ii) revenue from contracts with customers. The Company reports revenues for taxes or non-concession fees collected from customers on behalf of governmental authorities on a net basis. 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. 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 charged 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 expense. 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. Upon adoption of ASC 606, Revenue from Contracts with Customers ("Topic 606"), each transaction that generates loyalty points results in the deferral of revenue equivalent to the retail value at the date the points are earned. 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 current retail value measured as of the date the loyalty points are earned, less an estimated amount representing loyalty points that are not expected to be redeemed (“breakage”). Breakage is reviewed on a quarterly basis and includes significant assumptions such as historical breakage trends and internal Company forecasts. 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 lease incentives 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 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 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. 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 in the accompanying consolidated statements of operations. Fleet Leasing and Fleet Management Revenue The Company's Donlen subsidiary, which sold substantially all of its assets and certain liabilities on March 30, 2021, generated revenue from various fleet leasing and fleet management services. Donlen’s operating leases for fleets had lease periods that were typically for twelve months, after which the lease converted to a month-to-month lease, allowing the vehicle to be surrendered any time thereafter. The Company's fleet leases contained a terminal rental adjustment clause ("TRAC") where, upon sale of the vehicle following the termination of the lease, a TRAC adjustment may result through which the lessee was credited or charged with the gain or loss on the vehicle's disposal. Such TRAC adjustments were considered variable charges. Fleet management services were comprised of fuel purchasing and management, preventive vehicle maintenance, repair consultation, toll management and accident management. Fleet management revenue was recognized net of any fees collected from customers on behalf of third-party service providers, as services were 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. Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents Cash and cash equivalents include cash on hand and highly liquid investments with an original maturity of three months or less. The Company's cash and cash equivalents are invested in various investment grade institutional money market funds, and bank money market and interest-bearing accounts. Restricted cash and restricted cash equivalents include cash and cash equivalents that are not readily available for use in the Company's operating activities. Restricted cash and restricted cash equivalents are primarily comprised of proceeds from the disposition of vehicles pledged under the terms of vehicle debt financing arrangements and are restricted for the purchase of revenue earning vehicles and other specified uses under the vehicle debt facilities, cash utilized as credit enhancement under those arrangements, proceeds from the Term Loan C which are utilized to collateralize letters of credit, and certain cash accounts supporting regulatory reserve requirements related to the Company's self-insurance. These funds are primarily held in demand deposit and money market accounts or in highly rated money market funds with investments primarily in government and corporate obligations. Deposits held at financial institutions may exceed the amount of insurance provided on such deposits. Generally, these deposits may be redeemed upon demand and are maintained with financial institutions with reputable credit and therefore bear minimal credit risk. The Company limits exposure relating to financial instruments by diversifying the financial instruments among various counterparties, which consist of major financial institutions. Receivables, Net of Allowance Receivables are stated net of allowances and primarily represent credit extended to vehicle manufacturers, customers that satisfy defined credit criteria, and amounts due from customers resulting from damage to rental vehicles. The estimate of the allowance for doubtful accounts is based on the Company's future expected losses and its judgement as to the likelihood of ultimate payment. Actual receivables are written-off against the allowance for doubtful accounts when the Company determines the balance will not be collected. Estimates for future credit memos are based on historical experience and are reflected as reductions to revenue, while bad debt expense is reflected as a component of direct vehicle and operating expense in the accompanying consolidated statements of operations. Property and Equipment, Net The Company's property and equipment, net consisted of the following: (In millions) December 31, 2021 December 31, 2020 Land, buildings and leasehold improvements $ 971 $ 1,277 Service vehicles, equipment and furniture and fixtures 339 761 Less: accumulated depreciation (702) (1,372) Total property and equipment, net $ 608 $ 666 Land is stated at cost and reviewed annually for impairment as further disclosed above in "Long-lived Assets, Including Finite-lived Intangible Assets." Property and equipment are stated at cost and are depreciated utilizing the straight-line method over the estimated useful lives of the related assets. Estimated useful lives are as follows: Buildings 1 to 50 years Furniture and fixtures 1 to 5 years Service vehicles and equipment 1 to 25 years Leasehold improvements The lesser of the economic life or the lease term Depreciation expense for property and equipment, net for the years ended December 31, 2021, 2020 and 2019 was $108 million, $129 million and $122 million, respectively. The Company follows the practice of charging maintenance and repair costs for service vehicles, furniture and fixtures, and equipment, including the cost of minor replacements, to maintenance expense. Long-lived Assets, Including Finite-lived Intangible Assets Finite-lived intangible assets include concession agreements, technology, customer relationships and other intangibles. Long-lived assets and intangible assets with finite lives, including technology-related intangibles, are amortized using the straight-line method over the estimated economic lives of the assets, which range from one fifty years two twenty years Stock-Based Compensation The Company measures the cost of employee services received in exchange for an award of equity instruments based on the grant date fair value of the award. That cost is to be recognized over the period during which the employee is required to provide service in exchange for the award. Forfeitures are accounted for when they occur. The Company has estimated the fair value of options issued at the date of grant using a Black-Scholes option-pricing model, which includes assumptions related to volatility, expected term, dividend yield and risk-free interest rate. The Company accounts for restricted stock unit ("RSU") and performance stock unit ("PSU") awards when granted as equity classified awards. For RSUs the expense is based on the grant-date fair value of the stock and the number of shares that vest, recognized over the service period. For any PSUs and performance share awards ("PSAs") granted, the expense is based on the grant-date fair value of the stock, recognized over a service period depending upon the applicable performance condition. For any PSUs and PSAs, the Company re-assesses the probability of achieving the applicable performance condition quarterly and adjusts the recognition of expense accordingly. The Company includes the excess tax benefit within income tax expense in the accompanying consolidated statements of operations when realized. Fair Value Measurements U.S. GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the principal market or, if none exists, the most advantageous market, for the specific asset or liability at the measurement date (referred to as the "exit price"). Fair value is a market-based measurement that is determined based upon assumptions that market participants would use in pricing an asset or liability, including consideration of nonperformance risk. The Company assesses the inputs used to measure fair value using the three-tier hierarchy promulgated under U.S. GAAP. This hierarchy indicates the extent to which inputs used in measuring fair value are observable in the market. Level 1: Inputs that reflect quoted prices for identical assets or liabilities in active markets that are observable. Level 2: Inputs other than quoted prices included in Level 1 that are observable either directly or indirectly, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3: Inputs that are unobservable to the extent that observable inputs are not available for the asset or liability at the measurement date and include management's judgment about assumptions market participants would use in pricing the asset or liability. Financial Instruments The Company is exposed to a variety of market risks, including the effects of changes in interest rates, gasoline and diesel fuel prices and foreign currency exchange rates. The Company manages exposure to these market risks through regular operating and financing activities and, when deemed appropriate, through the use of derivative financial instruments. Financial instruments are viewed as risk management tools and have not been used for speculative or trading purposes. In addition, financial instruments are entered into with a diversified group of major financial institutions in order to manage the Company's exposure to counterparty nonperformance on such instruments. The Company measures all financial instruments at their fair value and does not offset the derivative assets and liabilities in its accompanying consolidated balance sheets. As the Company does not have financial instruments that are designated and qualify as hedging instruments, the changes in their fair value are recognized currently in the Company's operating results. Foreign Currency Translation and Transactions Assets and liabilities of international subsidiaries whose functional currency is the local currency are translated at the rate of exchange in effect on the balance sheet date; income and expenses are translated at the average exchange rates throughout the year. The related translation adjustments are reflected in accumulated other comprehensive income (loss) in the accompanying consolidated balance sheets. Foreign currency exchange rate gains and losses resulting from transactions are included in other (income) expense in the accompanying consolidated statements of operations. Advertising Advertising production costs are deferred and expensed when the advertising first takes place. Advertising communication costs are expensed as incurred. Advertising costs are reflected as a component of selling, general and administrative expenses in the accompanying consolidated statements of operations and for the years ended December 31, 2021, 2020 and 2019 were $162 million, $112 million and $318 million, respectively. Divestitures The Company classifies long-lived assets and liabilities to be disposed of as held for sale in the period in which they are available for immediate sale in their present condition and the sale is probable and expected to be completed within one year. The Company initially measures assets and liabilities held for sale at the lower of their carrying value or fair value less costs to sell and assesses their fair value quarterly until disposed. When the divestiture represents a strategic shift that has (or will have) a major effect on the Company's operations and financial results, the disposal is presented as a discontinued operation. Recently Issued Accounting Pronouncements Adopted Scope of Reference Rate Reform In January 2021, the FASB issued guidance that clarifies that entities with derivative instruments affected by changes to the interest rates used for discounting, margining or contract price alignment due to reference rate reform may elect to apply certain optional expedients and exceptions, including contract modification relief, provided in Topic 848. Entities may elect to apply the guidance on contract modifications either (1) retrospectively as of any date from the beginning of any interim period that includes March 12, 2020 or (2) prospectively to new modifications from any date in an interim period that includes or is after January 7, 2021, up to the date that financial statements are available to be issued. The Company will apply the guidance prospectively, as applicable, and does not expect a material impact on its financial position, results of operations or cash flows. |
Divestitures
Divestitures | 12 Months Ended |
Dec. 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Divestitures | Divestitures Donlen Sale In November 2020, the Company entered into a stock and asset purchase agreement with Freedom Acquirer LLC (the "Buyer"), an affiliate of Athene Holding Ltd., to sell substantially all of the assets of its wholly-owned subsidiary Donlen. On March 30, 2021, the Company completed the sale. The proceeds from the sale were subject to certain post-closing adjustments in the second quarter of 2021 based on the level of assumed indebtedness, working capital and fleet equity. For the year ended December 31, 2021, the Company recognized a pre-tax gain in its corporate operations of $400 million, net of the impact of foreign currency adjustments, based on the difference in cash proceeds received of $891 million less $543 million net book value of assets sold plus a $53 million receivable in connection with the sale where cash proceeds were received in September 2021. On March 30, 2021, the Company and the Buyer entered into a transition services agreement which provides for certain transitional services in connection with the sale. The assets and liabilities of Donlen included in the sale were classified as held for sale in the accompanying consolidated balance sheet as of December 31, 2020. Assets and liabilities classified as held for sale are required to be recorded at the lower of the carrying value or fair value less any costs to sell. The major classes of assets and liabilities held for sale as of December 31, 2020 are presented below at their carrying value. (in millions) December 31, 2020 ASSETS Cash and cash equivalents $ 3 Restricted cash and cash equivalents 68 Receivables, net 207 Prepaid expenses and other assets 28 Revenue earning vehicles, net 1,432 Property and equipment, net 6 Operating lease right-of-use assets 2 Intangible assets, net 29 Goodwill 36 Total assets held for sale $ 1,811 LIABILITIES Accounts payable $ 76 Accrued liabilities 19 Accrued taxes, net 3 Vehicle debt 1,327 Operating lease liabilities 6 Total liabilities held for sale $ 1,431 Termination of 767 Auto Leasing Agreement 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”) the option to acquire certain vehicles from Hertz at rates aligned with the rates at which Hertz sold vehicles to third parties where 767’s payment obligations were guaranteed by American Entertainment Properties Corp. ("AEPC"). The 767 Lease Agreement was terminated effective October 31, 2021. Prior to the termination of the 767 Lease Agreement, the Company determined that it was the primary beneficiary of 767 due to its power to direct the activities of 767 that most significantly impacted 767's economic performance and the Company's obligation to absorb 25% of 767's gains/losses and, accordingly, 767 was consolidated by the Company as a VIE. During the year ended December 31, 2021, 767 distributed $38 million to AEPC along with the return of certain vehicles, and there were no cash contributions from AEPC to 767. During the year ended December 31, 2020, 767 distributed $75 million to AEPC and there were no cash contributions from AEPC to 767, except for certain services. Sale of Marketable Securities In 2020, the Company sold marketable securities for $74 million and recognized an immaterial gain on the sale in its corporate operations, which was included in other (income) expense, net in the accompanying consolidated statement of operations for the year ended December 31, 2020. Sale of Non-vehicle Capital Assets In 2019, the Company completed the sale of certain non-vehicle capital assets in its Americas RAC segment and recognized a $39 million pre-tax gain on the sale which was included in other (income) expense, net in the accompanying consolidated statement of operations for the year ended December 31, 2019. In 2020, the Company received additional cash from the sale and recognized an additional $20 million pre-tax gain on the sale, which was included in other (income) expense, net in the accompanying consolidated statement of operations for the year ended December 31, 2020. |
Revenue Earning Vehicles
Revenue Earning Vehicles | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Earning Vehicles | Revenue Earning Vehicles The components of revenue earning vehicles, net are as follows: December 31, (In millions) 2021 2020 (1) Revenue earning vehicles $ 10,506 $ 7,492 Less accumulated depreciation (1,518) (1,467) 8,988 6,025 Revenue earning vehicles held for sale, net (2) 238 37 Revenue earning vehicles, net $ 9,226 $ 6,062 (1) Excludes amounts associated with Donlen that are classified as held for sale as of December 31, 2020. See Note 3, "Divestitures," for additional information. (2) Represents the carrying amount of vehicles placed on the Company's retail lots for sale or actively in the process of being sold through other disposition channels. |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets, Net | Goodwill and Intangible Assets, Net Recoverability of Goodwill and Indefinite-lived Intangible Assets On an annual basis as of October 1, and at interim periods when circumstances require as a result of a triggering event as defined by ASC 350 - Intangibles, Goodwill and Other ("Topic 350"), the Company tests the recoverability of its goodwill and indefinite-lived intangible assets by performing an impairment analysis. An impairment is deemed to exist if the carrying value of goodwill or indefinite-lived intangible assets exceed their fair value as determined using level 3 inputs under the GAAP fair value hierarchy. The reviews of fair value involve judgment and estimates, including projected revenues, long-term growth rates, royalty rates and discount rates. The Company believes that its valuation techniques and assumptions are reasonable for this purpose. The Company performed the goodwill impairment analyses using the income approach, a measurement using level 3 inputs under the U.S. GAAP fair value hierarchy. In performing the impairment analyses, the weighted-average cost of capital used in the discounted cash flow model was calculated based upon the fair value of the Company's debt and stock price with a debt-to-equity ratio comparable to the vehicle rental car industry. This present value model requires management to estimate future cash flows and forecasted EBITDA margins and capital investments of each reporting unit. The Company revised its reportable segments in Q2 2021, as disclosed in Note 19, "Segment Information," and the change in reporting units had no impact to the valuation of the Company's goodwill. The assumptions the Company used to estimate future cash flows and EBITDA margins are consistent with the assumptions that the reporting units use for internal planning purposes, which the Company believes would be generally consistent with that of a market participant. The discount rate used for each reporting unit ranged from 13.0% to 13.5%. Each of the Company's reporting units had a fair value that exceeded its respective carrying value, the lowest of which was greater than 25%. The Company performed the intangible impairment analyses for indefinite-lived intangible assets using the relief-from-royalty income approach, a measurement using level 3 inputs under the U.S. GAAP fair value hierarchy. The Company considered consistent factors as described above related to goodwill in addition to royalty rates. The assumptions the Company uses to estimate royalty rates are consistent with the assumptions that the reporting units use for internal planning purposes, which the Company believes would be generally consistent with that of a market participant. The discount rate used for each indefinite-lived intangible ranged from 13.0% to 13.5%. All indefinite-lived intangibles were noted to have fair values that exceeded their carrying values, the lowest of which was greater than 25%. Technology-related Intangible and Other Assets Due to uncertainty surrounding the Company's financial ability to complete certain information technology projects as a result of COVID-19 and the filing of the Chapter 11 Cases, as disclosed in Note 1, "Background," the Company concluded in the second quarter of 2020 that there was an impairment of such technology-related intangible assets and capitalized cloud computing implementation costs. In the second quarter of 2020, the Company recorded an impairment charge of $193 million in its corporate operations, representing an impairment of the carrying value of the abandoned portion of such assets as of June 30, 2020 of $124 million and $69 million of technology-related intangible assets and other assets, respectively. Goodwill The following summarizes the changes in the Company's goodwill by segment: (In millions) Americas RAC segment International RAC segment Total Balance as of January 1, 2021 Goodwill (1) $ 1,029 $ 236 $ 1,265 Accumulated impairment losses — (220) (220) 1,029 16 1,045 Goodwill disposal and other changes during the period — — — — — — Balance as of December 31, 2021 Goodwill 1,029 236 1,265 Accumulated impairment losses — (220) (220) $ 1,029 $ 16 $ 1,045 (1) Excludes goodwill of $36 million associated with Donlen that was classified as held for sale as of December 31, 2020. See Note 3, "Divestitures," for additional information. (In millions) Americas RAC segment International RAC segment Total (1) Balance as of January 1, 2020 Goodwill $ 1,029 $ 236 $ 1,265 Accumulated impairment losses — (218) (218) 1,029 18 1,047 Goodwill disposal and other changes during the period — (2) (2) — (2) (2) Balance as of December 31, 2020 Goodwill 1,029 236 1,265 Accumulated impairment losses — (220) (220) $ 1,029 $ 16 $ 1,045 (1) Excludes goodwill of $36 million associated with Donlen that was classified as held for sale as of December 31, 2020. See Note 3, "Divestitures," for additional information. Intangible Assets, Net Intangible assets, net, consists of the following major classes: December 31, 2021 (In millions) Gross Accumulated Net Amortizable intangible assets: Customer-related $ 269 $ (269) $ — Concession rights 408 (405) 3 Technology-related intangibles 359 (271) 88 Other (1) 48 (45) 3 Total 1,084 (990) 94 Indefinite-lived intangible assets: Tradenames (2) 2,794 — 2,794 Other (3) 24 — 24 Total 2,818 — 2,818 Total intangible assets, net $ 3,902 $ (990) $ 2,912 December 31, 2020 (4) (In millions) Gross Accumulated Net Amortizable intangible assets: Customer-related $ 269 $ (269) $ — Concession rights 408 (365) 43 Technology-related intangibles 355 (228) 127 Other (1) 48 (44) 4 Total 1,080 (906) 174 Indefinite-lived intangible assets: Tradenames (2) 2,794 — 2,794 Other (3) 24 — 24 Total 2,818 — 2,818 Total intangible assets, net $ 3,898 $ (906) $ 2,992 (1) Other amortizable intangible assets primarily include reacquired franchise rights. (2) As of December 31, 2021 and 2020, $2.2 billion was recorded in the Company's Americas RAC segment and $600 million in the Company's International RAC segment. (3) Other indefinite-lived intangible assets primarily consist of reacquired franchise rights. (4) Excludes intangible assets associated with Donlen that were classified as held for sale as of December 31, 2020. See Note 3, "Divestitures," for additional information. Years Ended December 31, (In millions) 2021 2020 2019 Amortization of intangible assets $ 88 $ 96 $ 81 The following table summarizes the Company's expected amortization expense based on its amortizable intangible assets as of December 31, 2021: (In millions) 2022 $ 41 2023 24 2024 17 2025 6 2026 2 After 2026 4 Total expected amortization expense $ 94 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Debt The Company's debt, including its available credit facilities, consists of the following ($ in millions) as of December 31, 2021 and 2020. The table and disclosures below exclude debt associated with Donlen that was classified as held for sale as of December 31, 2020. See Note 3, "Divestitures," for additional information. Facility Weighted-Average Interest Rate as of December 31, 2021 Fixed or Maturity December 31, December 31, Non-Vehicle Debt Term B Loan 3.75% Floating 6/2028 $ 1,294 $ — Term C Loan 3.75% Floating 6/2028 245 — Senior Notes Due 2026 4.63% Fixed 12/2026 500 — Senior Notes Due 2029 5.00% Fixed 12/2029 1,000 — First Lien RCF N/A Floating 6/2026 — — Other Non-Vehicle Debt (1) 8.49% Fixed Various 16 18 Senior Secured Superpriority Debtor-in-Possession Credit Agreement N/A N/A N/A — 250 Unamortized Debt Issuance Costs and Net (Discount) Premium (69) (25) Total Non-Vehicle Debt Not Subject to Compromise 2,986 243 Non-Vehicle Debt Subject to Compromise (2) Senior Term Loan N/A N/A N/A — 656 Senior RCF N/A N/A N/A — 615 Senior Notes (2) N/A N/A N/A — 2,700 Senior Second Priority Secured Notes N/A N/A N/A — 350 Promissory Notes N/A N/A N/A — 27 Alternative Letter of Credit Facility (3) N/A N/A N/A — 114 Senior RCF Letter of Credit Facility N/A N/A N/A — 17 Unamortized Debt Issuance Costs and Net (Discount) Premium — (36) Total Non-Vehicle Debt Subject to Compromise — 4,443 Vehicle Debt HVF III U.S. ABS Program HVF III U.S. Vehicle Variable Funding Notes HVF III Series 2021-A Class A (4) 1.62% Floating 6/2023 2,813 — Facility Weighted-Average Interest Rate as of December 31, 2021 Fixed or Maturity December 31, December 31, HVF III Series 2021-A Class B (4) 3.65% Fixed 6/2023 188 — 3,001 — HVF III U.S. Vehicle Medium Term Notes HVF III Series 2021-1 (4) 1.66% Fixed 12/2024 2,000 — HVF III Series 2021-2 (4) 2.12% Fixed 12/2026 2,000 — 4,000 — HVF II U.S. ABS Program HVF II U.S. Vehicle Variable Funding Notes HVF II Series 2013-A (5) N/A N/A N/A — 1,940 — 1,940 HVF II U.S. Vehicle Medium Term Notes HVF II Series 2015-3 N/A N/A N/A — 163 HVF II Series 2016-2 N/A N/A N/A — 263 HVF II Series 2016-4 N/A N/A N/A — 187 HVF II Series 2017-1 N/A N/A N/A — 199 HVF II Series 2017-2 N/A N/A N/A — 164 HVF II Series 2018-1 N/A N/A N/A — 468 HVF II Series 2018-2 N/A N/A N/A — 94 HVF II Series 2018-3 N/A N/A N/A — 95 HVF II Series 2019-1 N/A N/A N/A — 330 HVF II Series 2019-2 N/A N/A N/A — 354 HVF II Series 2019-3 N/A N/A N/A — 352 — 2,669 Vehicle Debt - Other European Vehicle Notes (6) N/A N/A N/A — 888 European ABS (4) 1.80% Floating 10/2023 395 263 Hertz Canadian Securitization (4) 2.49% Floating 1/2023 191 53 Australian Securitization (4) 1.66% Floating 4/2022 128 97 New Zealand RCF 3.49% Floating 6/2022 39 35 U.K. Financing Facility 3.68% Floating 1/2022-12/2024 98 105 U.K. Toyota Financing Facility 2.20% Floating 2/2022-2/2023 9 — Other Vehicle Debt 2.89% Floating 1/2022-12/2024 93 37 953 1,478 Unamortized Debt Issuance Costs and Net (Discount) Premium (33) (63) Total Vehicle Debt Not Subject to Compromise 7,921 6,024 Total Debt Not Subject to Compromise $ 10,907 $ 6,267 N/A - Not applicable (1) Other non-vehicle debt is primarily comprised of $12 million in capital lease obligations (2) Reference to the "Senior Notes" includes the series of Hertz's unsecured senior notes set forth in the table below which were included in liabilities subject to compromise in the accompanying consolidated balance sheet as of December 31, 2020. On the Effective Date, in accordance with the Plan of Reorganization, the Senior Notes were repaid in full and terminated. On July 1, 2021, Wells Fargo Bank, National Association, as indenture trustee for the Senior Notes, filed a complaint against Hertz and certain of its subsidiaries requesting declaratory judgement that additional amounts are owed with respect to certain premiums and post-petition interest with respect to the Senior Notes. Hertz disputes that any such amounts are owed and on August 2, 2021 filed a motion to dismiss the complaint. On December 23, 2021, the Company's motion to dismiss was granted by the Bankruptcy Court. See Note 14, "Contingencies and Off-Balance Sheet Commitments," for additional information. (In millions) Outstanding Principal Senior Notes December 31, 2021 December 31, 2020 6.250% Senior Notes due October 2022 $ — $ 500 5.500% Senior Notes due October 2024 — 800 7.125% Senior Notes due August 2026 — 500 6.000% Senior Notes due January 2028 — 900 $ — $ 2,700 (3) Includes default interest as of December 31, 2020. (4) 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 originally 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. (5) Includes default interest as of December 31, 2020, which was comprised of an increase in the contractual spread. (6) 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 ("Hertz Netherlands"), unsecured senior notes (converted from Euros to U.S. Dollars at a rate of 1.22 to 1 as of December 31, 2020) set forth in the table below. On the Effective Date, in accordance with the Plan of Reorganization, the European Vehicle Notes were repaid in full and cancelled. (In millions) Outstanding Principal European Vehicle Notes December 31, 2021 December 31, 2020 4.125% Senior Notes due October 2021 $ — $ 276 5.500% Senior Notes due March 2023 — 612 $ — $ 888 Chapter 11 and Emergence As a result of filing the Chapter 11 Cases, as disclosed in Note 1, "Background," the Company reclassified certain of its non-vehicle debt instruments, net of deferred financing costs, discounts and premiums, as applicable, to liabilities subject to compromise in the accompanying consolidated balance sheet as of December 31, 2020. The filing of the Chapter 11 Cases constituted an event of default that accelerated the Debtors’ obligations under the Senior Term Loan, the Senior RCF, the Letter of Credit Facility and the Alternative Letter of Credit Facility. Additionally, the filing triggered defaults, termination events and/or amortization events under certain obligations of (i) Hertz International Limited ("HIL"), Hertz Netherlands and the direct and indirect subsidiary companies located outside of the U.S. and Canada (collectively the "International Subsidiaries"), some of which were waived or amended subject to certain time limitations, and (ii) HVF, HVF II, and certain other vehicle financing subsidiaries (collectively the "Non-Debtor Financing Subsidiaries"). As disclosed in Note 1, "Background," on May 14, 2021, the Debtors filed the Plan of Reorganization with the Bankruptcy Court, which was confirmed by the Bankruptcy Court on June 10, 2021. On the Effective Date, the Company emerged from Chapter 11 as disclosed in Note 1, "Background" and, in accordance with the Plan of Reorganization, substantially all existing non-vehicle debt and all existing ABS facilities under the HVF II U.S. ABS Program and the HVIF U.S. ABS Program were repaid in full and cancelled, as further disclosed below. Upon the Debtor's emergence from Chapter 11 and the associated debt payoffs, any events of default, termination and/or amortization events ceased to exist. Non-Vehicle Debt First Lien Credit Agreement Pursuant to the Plan of Reorganization, on the Effective Date, Hertz entered into a credit agreement (the "First Lien Credit Agreement") that provides for the following: • Term B Loan for term loans in an aggregate principal amount of $1.3 billion; • Term C Loan for term loans that are available to cash collateralize letters of credit in an aggregate principal amount of $245 million; and • the First Lien RCF for revolving loans and letters of credit up to an aggregate principal amount of $1.3 billion. Proceeds received on the Effective Date, as a result of the Plan of Reorganization, under the First Lien Credit Agreement were used to (i) repay certain existing indebtedness of the Debtors; (ii) pay fees, expenses and costs associated with the consummation of the Plan of Reorganization; (iii) fund distributions required in connection with the Plan of Reorganization; (iv) provide funds for working capital and general corporate purposes; and (v) backstop or replace existing letters of credit. Term B Loan and Term C Loan (collectively, the "Term Loans") : The Term Loans bear interest based on an alternate base rate as per the First Lien Credit Agreement or adjusted LIBOR, in each case plus an applicable margin of (i) 2.25% in the case of the alternate base rate, or (ii) 3.25% in the case of the adjusted LIBOR. In each case, the margin may change depending on Hertz's consolidated total corporate leverage ratio, as defined in the First Lien Credit Agreement (the "Total Corporate Leverage Ratio"). The Term Loans include provisions for a transition to an alternative benchmark index other than LIBOR. The First Lien Credit Agreement requires the Term B Loan to be repaid in quarterly installments of $3.3 million per quarter beginning on September 30, 2021 until maturity. The Term Loans mature on June 30, 2028. First Lien RCF : The First Lien RCF bears interest, at a benchmark rate plus spread. Loans under the facility are available in various currencies including USD, Eurodollar, Australian dollar, Canadian dollar and Sterling. Benchmark rates for the relevant currencies include, the relevant LIBOR rate, the Prime rate, the Bank Bill Swap Reference Bid Rate for Australian dollars, Canadian prime rate, an adjusted Canadian Dollar Offered Rate ("CDOR") or the Daily Simple Sterling Overnight Index Average ("SONIA"). ABR Loans and Canadian Prime Rate Loans, as defined under the First Lien Credit Agreement, bear interest at the relevant benchmark rate plus an initial applicable margin of 2.50%. The First Lien RCF includes provisions for a transition to an alternative benchmark index other than LIBOR. The margin for Euro currency Loans (including USD loans), SONIA loans and Canadian dollar BA Equivalent Loans, as defined in the First Lien Credit Agreement, is dependent upon the Company's Consolidated Total Corporate Leverage Ratio, as defined under the First Lien Credit Agreement. As of December 31, 2021, that margin was 3.00%. In each case, the margin may change depending on Hertz’s Total Corporate Leverage Ratio. The First Lien RCF matures on June 30, 2026. 2021 Senior Notes In November 2021, Hertz issued $1.5 billion of unsecured senior notes consisting of $500 million Senior Notes Due 2026 and $1.0 billion Senior Notes Due 2029. The Senior Notes Due 2026 and the Senior Notes Due 2029 are Hertz's senior unsecured obligations and are guaranteed by each of Hertz’s direct and indirect U.S. subsidiaries that are guarantors under the First Lien Credit Agreement. Proceeds from the issuance of the Senior Notes Due 2026 and the Senior Notes Due 2029 were contributed to Hertz Global through a dividend distribution from Hertz to repurchase all outstanding shares of Hertz Global's Series A Preferred Stock. See Note 16, "Equity and Mezzanine Equity – Hertz Global." DIP Credit Agreement On October 29, 2020, the Bankruptcy Court entered an order authorizing the Debtors to obtain certain debtor-in-possession financing (the "DIP Order"). In accordance with the Bankruptcy Court’s order, on October 30, 2020, Hertz, as borrower, and Hertz Global and certain of its subsidiaries located in the U.S. and Canada, in each case that were debtors in the Chapter 11 Cases, as guarantors (collectively, the "DIP Debtors"), entered into the DIP Credit Agreement. The DIP Credit Agreement provided for DIP Loans, of which (i) up to $1.0 billion could be used as equity for new interim fleet financing, which gave the DIP Debtors the ability to replenish their vehicle fleet, and (ii) up to $800 million could be used for working capital and general corporate purposes and had limited covenants and events of default, including one milestone that required the filing of a plan of reorganization by August 1, 2021. On February 16, 2021, Hertz borrowed an additional $250 million as per the minimum draw requirements of the DIP Credit Agreement. On the Effective Date, in accordance with the Plan of Reorganization, the DIP Credit Agreement was paid in full and terminated. Senior Facilities On the Effective Date, in accordance with the Plan of Reorganization, the Senior Term Loan, the Senior RCF and drawn amounts under the Senior RCF Letter of Credit Facility and Letter of Credit Facility were paid in full and terminated. Senior Notes and Senior Second Priority Secured Notes On the Effective Date, in accordance with the Plan of Reorganization, the Company's Senior Notes and Senior Second Priority Secured Notes were paid in full and terminated. Promissory Notes On the Effective Date, in accordance with the Plan of Reorganization, the Promissory Notes were paid in full and terminated. Alternative Letter of Credit Facility On the Effective Date, in accordance with the Plan of Reorganization, the Alternative Letter of Credit Facility was paid in full and terminated. HIL Credit Agreement In April 2021, Hertz International Limited ("HIL") entered into a multi-draw term loan facility (the "HIL Credit Agreement") which provided an aggregate maximum principal of €250 million to meet the liquidity requirements of the European business. In May 2021, resulting from a change in the Company's plan of reorganization sponsorship, the HIL Credit Agreement was terminated and HIL entered into a new multi-draw term loan facility (the "Second HIL Credit Agreement") which also provided for an aggregate maximum principal of €257 million that was funded by certain of the Plan Sponsors. On the Effective Date, in accordance with the Plan of Reorganization, the Second HIL Credit Agreement was paid in full and terminated. Vehicle Debt HVF III U.S. ABS Program In June 2021, Hertz established a securitization platform, the HVF III U.S. ABS Program, to facilitate its financing activities relating to vehicles used by Hertz in the U.S. daily vehicle rental operations. HVF III, a wholly-owned, special-purpose and bankruptcy remote subsidiary of Hertz, is the issuer of variable funding notes and medium term notes under the HVF III U.S. ABS Program. HVF III entered into a base indenture that permits it to issue term and variable funding rental car asset-backed securities, secured by a collateral pool consisting primarily of the rental vehicles used in the Company's U.S. vehicle rental operations and the related incentive and repurchase program vehicle receivables. Within each series of HVF III U.S. Vehicle Medium Term Notes, the issued notes are subordinated based on class. Pursuant to the Plan of Reorganization, in June 2021, HVF III issued Series 2021-A Variable Funding Rental Car Asset Backed Notes (the "Series 2021-A Notes"), the Series 2021-1 Fixed Rate Rental Car Asset Backed Notes (the "Series 2021-1 Notes") and the Series 2021-2 Fixed Rate Rental Car Asset Backed Notes (the "Series 2021-2 Notes" and, together with the Series 2021-A Notes and the Series 2021-1 Notes, the “HVF III Series 2021 Notes”). HVF III Series 2021-A Notes: In June 2021, Hertz issued the Series 2021-A Class A Notes with a maximum principal amount of up to $2.8 billion. In December 2021, Hertz issued the Series 2021-A Class B Notes with a maximum principal amount of up to $188 million. The HVF III Series 2021- A Notes have a maturity date of June 2023. HVF III Series 2021-1 Notes : On the Effective Date, Hertz issued the Series 2021-1 Notes in four classes (Class A, Class B, Class C and Class D) in an aggregate principal amount of $2.0 billion. There is subordination within the Series 2021-1 Notes based on class. HVF III Series 2021-2 Notes: On the Effective Date, Hertz issued the Series 2021-2 Notes in four classes (Class A, Class B, Class C and Class D) in an aggregate principal amount of $2.0 billion. There is subordination within the Series 2021-2 Notes based on class. In June 2021, in connection with the issuance of the HVF III Series 2021 Notes, Hertz entered into a new Master Motor Vehicle Operating Lease and Servicing Agreement (the “Operating Lease”) among HVF III, as lessor, Hertz, as a lessee, servicer and guarantor, DTG Operations, Inc., a wholly-owned subsidiary of the Company, as a lessee and other permitted lessees (together with Hertz and DTG Operations, Inc., the "Lessees"), pursuant to which HVF III will lease vehicles to the Lessees. Proceeds received upon issuance from the HVF III Series 2021 Notes were used to fund the purchases of certain vehicles and for the repayment in full of (i) approximately $3.5 billion in aggregate outstanding principal of notes issued by HVF II, as described below, and (ii) approximately $2.2 billion in aggregate outstanding principal of notes issued by Hertz Vehicle Interim Financing, a direct wholly-owned bankruptcy remote subsidiary of Hertz ("HVIF"). The manufacturer rebates associated with HVF and HVIF were transferred to HVF III as part of the purchase agreements with HVF and HVIF. Any remaining funds are expected to be used for the future purchase or refinancing of vehicles to be leased under the Operating Lease. HVF III Series 2022 Notes In January 2022, Hertz issued the Series 2022-1 Notes and the Series 2022-2 Notes in an aggregate principal amount of $1.5 billion. Proceeds from the issuance of the Series 2022-1 Notes and the Series 2022-2 Notes will be used to repay amounts outstanding on the Series 2021-A Notes. Any remaining funds are expected to be used for the future purchase or refinancing of vehicles to be leased under the Operating Lease. HVF III Series 2022-1 Notes : In January 2022, Hertz issued the Series 2022-1 Notes in four classes (Class A, Class B, Class C and Class D) in an aggregate principal amount of $750 million. There is subordination within the Series 2022-1 Notes based on class. An affiliate of HVF III purchased the Class D Notes, and as a result approximately $98 million of the aggregate principal amount is eliminated in consolidation. HVF III Series 2022-2 Notes : In January 2022, Hertz issued the Series 2022-2 Notes in four classes (Class A, Class B, Class C and Class D) in an aggregate principal amount of $750 million. There is subordination within the Series 2022-2 Notes based on class. An affiliate of HVF III purchased the Class D Notes, and as a result approximately $98 million of the aggregate principal amount is eliminated in consolidation. HVF II U.S. ABS Program On the Effective Date, in accordance with the Plan of Reorganization, all HVF II U.S. Vehicle Medium Term Notes and HVF II U.S Vehicle Variable Funding Notes were paid in full and terminated. Any and all outstanding Bankruptcy Court orders and other agreements relating to HVF II were terminated on the Effective Date as a result of the termination of the notes. HVIF U.S. ABS Program On the Effective Date, in accordance with the Plan of Reorganization, the HVIF Series 2020-1 was paid in full and terminated. Vehicle Debt-Other European Vehicle Notes On the Effective Date, in accordance with the Plan of Reorganization, the European Vehicle Notes were paid in full and terminated. European ABS The European ABS is the primary vehicle financing facility for the Company's vehicle rental operations in France, the Netherlands, Germany and Spain. The lenders under the European ABS have been granted a security interest in the owned rental vehicles used in the Company's vehicle rental operations in these countries and certain contractual rights related to such vehicles. In April 2021, International Fleet Financing No. 2 BV ("IFF No. 2") entered into a comprehensive restructuring of the European ABS. The terms of the restructured European ABS provide for aggregate maximum borrowings of €450 million and extend the maturity to April 2022. In accordance with the Plan of Reorganization, the guarantees provided by Hertz relating to the restructured European ABS, including all contingent claims in respect of such guarantees, were fully released on the Effective Date. In December 2021, the European ABS was amended to increase the aggregate maximum borrowings to €750 million and to extend the maturity to October 2023. In connection with the amendment, Hertz entered into a performance guarantee with respect to certain obligations of certain of its subsidiaries in their capacities as lessees, servicers and administrators under the European ABS. Hertz Canadian Securitization On January 27, 2021, TCL Funding Limited Partnership, a bankruptcy remote, indirect, wholly-owned, special purpose subsidiary of Hertz, entered into the Funding LP Series 2021-A Notes which provides for aggregate maximum borrowings of CAD$350 million on a revolving basis, subject to availability under the borrowing base limitation. The initial draw was used, in part, to pay the outstanding obligations under the Funding LP Series 2015-A Notes, including any unpaid default interest. As a result of the payoff of the Funding LP Series 2015-A Notes, the Hertz Canadian Securitization amortization event ceased to exist. Australian Securitization HA Fleet Pty Limited, an indirect wholly-owned subsidiary of Hertz, is the issuer under the Australian Securitization. The Australian Securitization is the primary fleet financing facility for Hertz's vehicle rental operations in Australia. The lender under the Australian Securitization has been granted a security interest primarily in the owned rental vehicles used in its vehicle rental operations in Australia and certain contractual rights related to such vehicles. An amortization event that would have arisen under the Australian Securitization as a result of the filing of the Chapter 11 Cases was waived in May 2020, and in June 2021, such waiver was superseded by an amendment of the Australian Securitization. The terms of the amended Australian Securitization provide for aggregate maximum borrowings of AUD$210 million and extend the maturity to April 2022. In accordance with the Plan of Reorganization, the guarantees provided by Hertz relating to the restructured Australian Securitization, including all contingent claims in respect of such guarantees, were fully released on the Effective Date. In January 2022, the Australian Securitization was amended to increase the aggregate maximum borrowings to AUD$250 million and to extend the maturity to April 2024. New Zealand RCF Hertz New Zealand Holdings Limited, an indirect wholly-owned subsidiary of Hertz, is the borrower under a credit agreement that provides for aggregate maximum borrowings on a revolving basis under an asset-based revolving credit facility (the “New Zealand RCF”). The New Zealand RCF is the primary vehicle financing facility for its vehicle rental operations in New Zealand. In May 2021, Hertz New Zealand Holdings Limited, an indirect, wholly-owned subsidiary of Hertz, amended its credit agreement to provide for aggregate maximum borrowings of NZD$60 million and to extend the maturity to June 2022. U.K. Financing Facility Events of default that would have arisen under the U.K. Financing Facility as a result of filing the Chapter 11 Cases were waived in May 2020 (as amended from time to time), and, in April 2021, such waivers were superseded by a comprehensive restructuring of the U.K. Financing Facility. The terms of the restructured U.K. Financing Facility provide for aggregate maximum borrowings of £100 million and extend the maturity to April 2022. In accordance with the Plan of Reorganization, guarantees provided by Hertz relating to the restructured U.K. Financing Facility, including all contingent claims in respect of such guarantees, were fully released on the Effective Date. U.K. Toyota Financing Facility In May 2021, Hertz U.K. Limited entered into the U.K. Toyota Financing Facility to finance the acquisition of certain motor vehicles which provides for aggregate maximum borrowings of £10 million maturing, upon extension, in June 2022. Loss on Extinguishment of Debt The Company incurred losses in the form of early redemption premiums and/or the write-off of deferred financing costs associated with certain redemptions, terminations and waiver agreements. Loss on extinguishment of debt is presented in Reorganization items, net, unless otherwise noted in the table below, in the accompanying consolidated statements of operations. The following table reflects the amount of loss for each respective redemption/termination: Years Ended December 31, Redemption/Termination (in millions) 2021 2020 2019 Non-Vehicle Debt HIL Credit Agreement (1) $ 8 $ — $ — Second HIL Credit Agreement 5 — — Total Non-Vehicle Debt 13 — — Non-Vehicle Debt (subject to compromise) Senior Term Loan 16 — — Senior RCF 22 — — Senior Notes 29 — — Senior Second Priority Secured Notes (2) 4 — 39 Promissory Notes 2 — — Alternative Letter of Credit Facility 7 — — Letter of Credit Facility 8 — — 5.875% Senior Notes due 2020 (2) — — 2 7.375% Senior Notes due 2021 (2) — — 2 Total Non-Vehicle Debt (subject to compromise) 88 — 43 Vehicle Debt HVF II U.S. Vehicle Variable Funding Notes 9 — — HVF II U.S. Vehicle Medium Term Notes 39 — — HVIF II Series 2020-1 21 — — European Vehicle Notes 29 — — European ABS (3) — 5 — Total Vehicle Debt 98 5 — Total Loss on Extinguishment of Debt $ 199 $ 5 $ 43 (1) The loss on extinguishment is recorded in non-vehicle interest expense, net in the accompanying consolidated income statement for the year ended December 31, 2021. (2) The loss on extinguishment incurred in 2019 was recorded in non-vehicle interest expense, net in the accompanying consolidated income statement for the year ended December 31, 2019. (3) The loss on extinguishment was recorded in vehicle interest expense, net in the accompanying consolidated income statement for the year ended December 31, 2020. Maturities As of December 31, 2021, the nominal amounts of maturities of debt for each of the years ending December 31 are as follows: (In millions) 2022 2023 2024 2025 2026 After 2026 Non-Vehicle Debt $ 20 $ 20 $ 15 $ 13 $ 513 $ 2,474 Vehicle Debt 311 3,617 2,026 — 2,000 — Total $ 331 $ 3,637 $ 2,041 $ 13 $ 2,513 $ 2,474 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. 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 the First Lien RCF. 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. 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 and, in the case of the First Lien RCF, less any issued standby letters of credit. 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). The following facilities were available to the Company as of December 31, 2021 and are presented net of any outstanding letters of credit: (In millions) Remaining Availability Under Non-Vehicle Debt First Lien RCF $ 925 $ 925 Total Non-Vehicle Debt 925 925 Vehicle Debt HVF III Series 2021-A — — European ABS 456 — Hertz Canadian Securitization 82 — Australian Securitization 24 — U.K. Financing Facility 37 — U.K. Toyota Financing Facility 5 — New Zealand RCF 2 — Total Vehicle Debt 606 — Total $ 1,531 $ 925 Letters of Credit On the Effective Date, in accordance with the Plan of Reorganization, drawn letters of credit under the Senior RCF, the Letter of Credit Facility and the Alternative Letter of Credit Facility were paid in full and terminated. To the extent any of the related issued letters of credit remained outstanding as of the Effective Date, certain of these letters of credit were deemed to be issued under the First Lien RCF. For the remainder, the Company provided cash collateral to backstop these obligations. As of December 31, 2021, there were outstanding standby letters of credit totaling $591 million comprised primarily of $245 million issued under the Term C Loan and $330 million were issued under the First Lien RCF. As of December 31, 2021, there remains no capacity to issue additional letters of credit under the Term C Loan. 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. As of December 31, 2021, none of the issued letters of credit have been drawn upon. Pledges Related to Vehicle Financing 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 or asset-backed securities programs. None of the value of such assets (including the assets owned by Hertz Vehicle Financing III LLC and various other domestic and international subsidiaries that facilitate the Company's international securitizations) will be available to satisfy the claims of unsecured creditors unless the secured creditors are paid in full. The Company has a 25% ownership interest in IFF No. 2, 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 VIE and the Company is the primary beneficiary, therefore, the assets, liabilities and results of operations of IFF No. 2 are included in the accompanying consolidated financial statements. As of December 31, 2021 and 2020, IFF No. 2 had total assets of $734 million and $464 million, respectively, comprised primarily of loans receivable, and total liabilities of $733 million and $464 million, respectively, comprised primarily of debt. Covenant Compliance The First Lien Credit Agreement requires Hertz to comply with the following financial covenant subsequent to the expiration of the Relief Period which expired effective as of September 30, 2021: a First Lien Ratio of less than or equal to 3.00 to 1.00 in the first and last quarters of the calendar year and 3.50 to 1.00 in the second and third quarters of the calendar year. The financial covenant disclosed above was effective beginning in the third quarter of 2021. As of December 31, 2021, Hertz was in compliance with the First Lien Ratio. In addition to financial covenants, the First Lien Credit Agreement contains customary affirmative covenants including, among other things, the delivery of quarterly and annual financial statements and compliance certificates, conduct of business, maintenance of property and insurance, compliance with environmental laws and the granting of security interest for the benefit of the secured parties under that agreement on after-acquired real property, fixtures and future subsidiaries. The First Lien Credit Agreement also contains customary negative covenants, including, among other things, the incurrence of liens, indebtedness, asset dispositions and restricted payments. As of December 31, 2021, the Company was in com |
Employee Retirement Benefits
Employee Retirement Benefits | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Employee Retirement Benefits | Employee Retirement BenefitsThe Company sponsors multiple domestic and international employee retirement benefit plans where benefits are based upon years of service and compensation. The Hertz Corporation Account Balance Defined Benefit Pension Plan (the “Hertz Retirement Plan”) is a U.S. cash balance plan, which was amended in 2014 to permanently discontinue future benefit accruals and participation under the plan for non-union employees. The majority of union employees have since discontinued participation in the Hertz Retirement Plan as the result of collective bargaining. Some of the Company’s international subsidiaries have defined benefit retirement plans or participate in various insured or multiemployer plans. In certain countries, when the subsidiaries make the required funding payments, they have no further obligations under such plans. The Company's benefit plans are generally funded, except for certain non-qualified U.S. defined benefit plans and in Germany, France and Italy, where unfunded liabilities are recorded. The Company also sponsors defined contribution plans for certain eligible U.S. and non-U.S. employees, where contributions are matched based on specific guidelines in the plans. Accordingly, the Company sponsors postretirement health care and life insurance benefits for a limited number of employees with hire dates prior to January 1, 1990. Management makes certain assumptions relating to discount rates, salary growth, long-term return on plan assets, retirement rates, mortality rates and other factors when determining amounts to be recognized. These assumptions are reviewed annually by management, assisted by the enrolled actuary, and updated as warranted. The Company uses a December 31 measurement date for all of the plans and utilizes fair value to calculate the market-related value of pension assets for purposes of determining the expected return on plan assets and accounting for asset gains and losses. Actual results that differ from the Company's assumptions are accumulated and amortized over future periods and, therefore, significant differences in actual experience or significant changes in assumptions would affect the Company's pension costs and obligations. The Company recognizes an asset for each over-funded plan and a liability for each underfunded plan in the consolidated balance sheets. Pension plan liabilities are revalued annually based on updated assumptions and information about the individuals covered by the plan. For pension plans, if accumulated actuarial gains and losses are in excess of a 10 percent corridor, the excess is amortized on a straight-line basis over the average remaining service period of active participants. Prior service cost is amortized on a straight-line basis from the date recognized over the average remaining service period of active participants, when applicable. Additionally, the Company previously sponsored the Hertz Corporation Benefit Equalization Plan ("BEP") and the Hertz Corporation Supplemental Executive Retirement Plans (together with the BEP, the "Supplemental Plans"). The Supplemental Plans were rejected in the Company's Chapter 11 Cases and terminated in connection with the Plan of Reorganization. As a result, participants in the Supplemental Plans were no longer entitled to benefit payments and were considered general creditors of the Company. As of December 31, 2020, the Company classified $24 million of its U.S. pension benefit obligation as liabilities subject to compromise in its accompanying consolidated balance sheet which were paid through the claim settlement process in 2021. The following tables set forth the funded status and the net periodic pension cost of the Hertz Retirement Plan and other U.S. based retirement plans, other postretirement benefit plans including health care and life insurance plans covering domestic (i.e., U.S.) employees and the retirement plans for international operations (“Non-U.S.”), together with amounts included in the accompanying consolidated balance sheets and statements of operations: Pension Benefits Postretirement U.S. Non-U.S. Benefits (U.S.) (In millions) 2021 2020 2021 2020 2021 2020 Change in Benefit Obligation Benefit obligation as of January 1 $ 522 $ 559 $ 340 $ 286 $ 12 $ 12 Service cost — — 1 1 — — Interest cost 12 15 4 5 1 — Plan curtailments — (2) — — — — Plan settlements (26) (88) (6) (5) — — Benefits paid (27) (3) (5) (6) (1) (1) Foreign currency exchange rate translation — — (7) 17 — — Actuarial (gain) loss (16) 41 (20) 42 — 1 Benefit obligation as of December 31 (1) $ 465 $ 522 $ 307 $ 340 $ 12 $ 12 Change in Plan Assets Fair value of plan assets as of January 1 $ 488 $ 503 $ 258 $ 228 $ — $ — Actual return gain on plan assets 9 74 4 28 — — Company contributions 24 2 5 4 1 1 Plan settlements (26) (88) (6) (5) — — Benefits paid (27) (3) (5) (6) (1) (1) Foreign currency exchange rate translation — — (1) 9 — — Fair value of plan assets as of December 31 $ 468 $ 488 $ 255 $ 258 $ — $ — Funded Status of the Plan Plan assets less than benefit obligation $ 3 $ (34) $ (52) $ (82) $ (12) $ (12) (1) As a result of filing the Chapter 11 Cases, as disclosed in Note 1, "Background," participants of the Supplemental Plans were no longer entitled to benefit payments as of December 31, 2020 and were considered general creditors of the Company. As such, the Company classified $24 million of its U.S. pension benefit obligation as liabilities subject to compromise in the accompanying consolidated balance sheet as of December 31, 2020. In 2021, discount rates increased, resulting in actuarial gains for the U.S. and Non-U.S. pension and postretirement plans. In addition, the Non-U.S. pension plans were revalued on new census data in 2021 resulting in an additional gain, which was mostly offset by a loss from an increase in the inflation assumption. In 2020, discount rates decreased, resulting in actuarial losses for the U.S. and Non-U.S. pension and postretirement plans. In addition, an increase in the inflation assumption in 2020 resulted in an actuarial loss in the Non-U.S. pension plan. Pension Benefits Postretirement U.S. Non-U.S. Benefits (U.S.) ($ in millions) 2021 2020 2021 2020 2021 2020 Amounts recognized in balance sheets: Prepaid expenses and other assets $ 3 $ — $ 30 $ 14 $ — $ — Accrued liabilities — (34) (82) (96) (12) (12) Net obligation recognized in the balance sheets $ 3 $ (34) $ (52) $ (82) $ (12) $ (12) Prior service credit $ — $ — $ (2) $ (2) $ — $ — Net gain (loss) (28) (47) (72) (93) — (1) Accumulated other comprehensive income (loss) (28) (47) (74) (95) — (1) Funded/(Unfunded) accrued pension or postretirement benefit 31 13 22 13 (12) (11) Net obligation recognized in the balance sheets $ 3 $ (34) $ (52) $ (82) $ (12) $ (12) Total recognized in other comprehensive (income) loss $ (20) $ (26) $ (21) $ 23 $ (1) $ 1 Total recognized in net periodic benefit cost and other comprehensive (income) loss $ (14) $ (20) $ (20) $ 25 $ (1) $ 1 Accumulated Benefit Obligation as of December 31 (1) $ 465 $ 522 $ 306 $ 338 N/A N/A Weighted-average assumptions as of December 31 Discount rate 2.7 % 2.3 % 1.7 % 1.4 % 2.2 % 2.3 % Expected return on assets 4.5 % 4.5 % 3.0 % 3.0 % N/A N/A Average rate of increase in compensation 4.3 % 4.3 % 2.1 % 2.1 % N/A N/A Interest crediting rate 3.8 % 3.8 % N/A N/A N/A N/A Initial health care cost trend rate N/A N/A N/A N/A 5.6 % 5.5 % Ultimate health care cost trend rate N/A N/A N/A N/A 4.0 % 4.5 % Number of years to ultimate trend rate N/A N/A N/A N/A 25 18 N/A - Not applicable (1) As a result of filing of the Chapter 11 Cases, as disclosed in Note 1, "Background," participants of the Supplemental Plans were no longer entitled to benefit payments as of December 31, 2020 and were considered general creditors of the Company. As such, the Company classified $24 million of its U.S. pension benefit obligation as liabilities subject to compromise in the accompanying consolidated balance sheet as of December 31, 2020. The discount rate used to determine the December 31, 2021 and 2020 benefit obligations for U.S. pension plans was based on the rate from the Mercer Pension Discount Curve-Above Mean Yield that is appropriate for the duration of the Company's plan liabilities. For its plans outside the U.S., the discount rate reflected the market rates for an optimized subset of high-quality corporate bonds currently available with the discount rate in a country determined based on a yield curve constructed from high quality corporate bonds in that country. The rate selected from the yield curve has a duration that matches its plan. The expected return on plan assets for each funded plan is based on expected future investment returns considering the target investment mix of plan assets. The following table sets forth the net periodic pension and postretirement (including health care, life insurance and auto) expense charged to net income (loss). The components of net periodic pension expense (benefit), other than service cost, were included in other (income) expense, net in the accompanying consolidated statements of operations. Pension Benefits Postretirement U.S. Non-U.S. Years Ended December 31, ($ in millions) 2021 2020 2019 2021 2020 2019 2021 2020 2019 Components of Net Periodic Pension and Postretirement Expense (Benefit) Service cost $ — $ — $ — $ 1 $ 1 $ 1 $ — $ — $ — Interest cost 12 15 21 4 5 6 1 — — Expected return on plan assets (18) (20) (22) (7) (7) (9) — — — Net amortizations — 2 6 2 1 1 — — — Settlement loss 12 9 5 1 2 — — — — Net pension and postretirement expense (benefit) $ 6 $ 6 $ 10 $ 1 $ 2 $ (1) $ 1 $ — $ — Weighted-average discount rate for expense (January 1) 2.2 % 3.1 % 4.2 % 1.4 % 1.9 % 2.7 % 1.9 % 3.2 % 4.2 % Weighted-average assumed long-term rate of return on assets (January 1) 4.5 % 4.8 % 6.3 % 3.0 % 3.2 % 4.8 % N/A N/A N/A Weighted-average interest crediting rate for expense 3.8 % 3.8 % 3.8 % N/A N/A N/A N/A N/A N/A Initial health care cost trend rate N/A N/A N/A N/A N/A N/A 5.5 % 5.8 % 6.1 % Ultimate health care cost trend rate (rate to which cost trend is expected to decline) N/A N/A N/A N/A N/A N/A 4.5 % 4.5 % 4.5 % Number of years to ultimate trend rate N/A N/A N/A N/A N/A N/A 25 18 19 N/A - Not applicable The net of tax loss in accumulated other comprehensive income (loss) as of December 31, 2021 and 2020 relating to pension benefits of the Hertz Retirement Plan was $88 million and $122 million, respectively. The provisions charged to net income (loss) for the years ended December 31, 2021, 2020 and 2019 for all other pension plans were approximately $5 million, $6 million and $11 million, respectively. The provisions charged to net income (loss) for the years ended December 31, 2021, 2020 and 2019 for the defined contribution plans were approximately $16 million, $11 million and $27 million, respectively. Plan Assets The Company has a long-term investment outlook for the assets held in the Company sponsored plans, which is consistent with the long-term nature of each plan's respective liabilities. The Company has two major plans which reside in the U.S. and the United Kingdom. The U.S. Plan The U.S. Plan (the “Plan”) has a target asset allocation mix of 70% in investments intended to hedge the impact of capital market movements ("Immunizing Portfolio Investments"), comprised primarily of fixed income securities, and 30% in investments intended to earn more than the pension liability growth over the long-term ("Growth Portfolio Investments"). The Growth Portfolio Investments are primarily invested in passively managed equity funds, international and emerging market funds that are actively managed and non-investment grade fixed income funds. The overall strategy and the Immunizing Portfolio Investments are managed by professional investment managers. The investments within these asset classes are diversified in order to minimize the risk of large losses. The Plan assumes a 4.5% expected long-term annual weighted-average rate of return on assets. The fair value measurements of the Company's U.S. pension plan assets are based upon inputs that reflect quoted prices for identical assets or liabilities in active markets that are observable (Level 1) and significant observable inputs (Level 2) that reflect quoted prices for similar assets or liabilities in active markets. The fair value measurements of the U.S. pension plan assets relate to common collective trusts and other pooled investment vehicles consisting of the following asset categories: (In millions) December 31, 2021 December 31, 2020 Asset Category Level 1 Level 2 Measured at NAV (1) Level 1 Level 2 Measured at NAV (1) Cash $ 5 $ — $ — $ 6 $ — $ — Short Term Investments — 27 — — 28 — Equity Funds (2) : U.S. Large Cap — 59 — — 66 — U.S. Small Cap — 7 — — 11 — International Large Cap — 28 — — 36 — International Small Cap — 5 — — 7 — International Emerging Markets — 6 6 — 6 9 Fixed Income Securities: U.S. Treasuries — 24 — — 18 — Corporate Bonds — 247 — — 245 — Government Bonds — 12 — — 9 — Municipal Bonds — 10 — — 10 — Derivatives - Interest Rate 3 2 — 3 — — Non-Investment Grade Fixed Income (2) — 27 — — 34 — Total fair value of pension plan assets $ 8 $ 454 $ 6 $ 9 $ 470 $ 9 (1) Includes certain investments where the fair value measurement utilizes the net asset value ("NAV") and as such, are not classified in the fair value levels above. (2) The Level 2 investments relate to investment funds that publish daily NAV per unit. The daily NAV is available to participants in the funds and redemptions can be made daily at the current NAV. The fair value and units are determined and published, and are the basis for current transactions. The investments are not eligible for the NAV practical expedient. However, they are measured at the published NAV because the quoted NAV per unit represents the price at which the investment would be sold in a transaction between independent market participants. The U.K. Plan The Company's United Kingdom defined benefit pension plan (the "U.K. Plan") has a target allocation of 30% actively managed diversified growth and multi-asset credit funds, 10% passive equity funds and 60% protection portfolio that consists of liability driven investments, Sterling liquidity fund and United Kingdom corporate bonds. The actively managed diversified growth and multi-asset credit funds are intended to deliver a long-term equity-like return but with reduced levels of volatility. The protection portfolio is designed to partially hedge the interest rate and inflation expectation exposure of the liabilities which are measured on a local regulatory basis. The amount that is required to be invested in each fund to maintain target hedge ratios will vary over time as the value of the liabilities change and the allocations within the protection portfolio will be allowed to vary accordingly. All of the invested assets of the U.K. Plan are held via pooled funds managed by professional investment managers. The U.K. Plan assumes a 3.0% expected long-term weighted-average rate of return on assets for the Plan in total. The Company's U.K. Plan comprises $248 million of the $255 million in fair value of Non-U.S. plan assets as of December 31, 2021 and comprises $251 million of the $258 million in fair value of Non-U.S. plan assets as of December 31, 2020. The fair value measurements of the Company's U.K. Plan assets are based upon inputs that reflect quoted prices for identical assets or liabilities in active markets that are observable (Level 1) and significant observable inputs that reflect quoted prices for similar assets or liabilities in active markets (Level 2). The fair value measurements of the U.K. Plan assets relate to common collective trusts and other pooled investment vehicles consisting of the following asset categories: (In millions) December 31, 2021 December 31, 2020 Asset Category Level 1 Level 2 Measured at NAV (1) Level 1 Level 2 Measured at NAV (1) Actively Managed Multi-Asset Funds: Diversified Growth Funds (2) $ — $ 37 $ — $ — $ 39 $ — Multi Asset Credit — — 38 — — 37 Passive Equity Funds: U.K. Equities (2) — 12 — — 12 — Overseas Equities (2) — 14 — — 14 — Passive Bond Funds: Corporate Bonds — 27 — — 27 — Liability Driven Investments (2) — 96 — — 98 — Liquidity Fund 24 — — 24 — — Total fair value of pension plan assets $ 24 $ 186 $ 38 $ 24 $ 190 $ 37 (1) Includes certain investments where the fair value measurement utilizes NAV and as such, are not classified in the fair value levels above. (2) The Level 2 investments relate to investment funds that publish daily NAV per unit. The daily NAV is available to participants in the funds and redemptions can be made daily at the current NAV. The fair value and units are determined and published, and are the basis for current transactions. The investments are not eligible for the NAV practical expedient. However, they are measured at the published NAV because the quoted NAV per unit represents the price at which the investment would be sold in a transaction between independent market participants. Contributions The Company's policy for funded plans is to contribute annually, at a minimum, amounts required by applicable laws, regulations and union agreements. From time to time, the Company makes contributions beyond those legally required. In 2021 and 2020, the Company did not make any cash contributions to its U.S. qualified pension plan. In 2021 and 2020, the Company made contributions to its U.S. non-qualified pension plans of $24 million and $2 million, respectively. The Company made discretionary contributions of $3 million to its U.K. Plan during each of the years ended December 31, 2021 and 2020. The Company does not anticipate contributing to the U.S. qualified pension plan during 2022. The Company does not anticipate contributing any significant amounts to the U.K. Plan and anticipates contributing $2 million to its other international plans during 2022. The level of 2022 and future contributions will vary, and is dependent on a number of factors including investment returns, interest rate fluctuations, plan demographics, funding regulations and the results of the final actuarial valuation. Estimated Future Benefit Payments The following table presents estimated future benefit payments: (In millions) Pension Benefits Postretirement 2022 $ 33 $ 3 2023 33 1 2024 35 1 2025 36 1 2026 39 1 2027 to 2031 206 3 $ 382 $ 10 Multiemployer Pension Plans The Company contributes to several multiemployer defined benefit pension plans under collective bargaining agreements that cover certain of its union-represented employees. The risks of participating in such plans are different from the risks of a single-employer plan, in the following respects: a) Assets contributed to a multiemployer plan by one employer may be used to provide benefits to employees of other participating employers. b) If a participating employer ceases to contribute to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers. c) If the Company ceases to have an obligation to contribute to the multiemployer plan in which the Company had been a contributing employer, the Company may be required to pay to the plan an amount based on the underfunded status of the plan and on the history of its participation in the plan prior to the cessation of its obligation to contribute. The amount that an employer that has ceased to have an obligation to contribute to a multiemployer plan is required to pay to the plan is referred to as a withdrawal liability. Amounts accrued for benefit payments under the Company's multiemployer pension plans of $20 million represent the net present value of the projected liabilities from withdrawal claims as of December 31, 2021. The Company's participation in multiemployer plans is outlined in the table below. For plans that are not individually significant to the Company, the total amount of contributions is presented in the aggregate. EIN /Pension Pension FIP / (1) Contributions by Surcharge Imposed Expiration Pension Fund 2021 2020 2021 2020 2019 Western Conference of Teamsters 91-6145047 Green Green N/A $ 4 $ 5 $ 8 N/A 2/28/2022 Other Plans 1 2 4 Total Contributions $ 5 $ 7 $ 12 N/A Not applicable (1) Indicates whether a Funding Improvement Plan, as required under the Code to be adopted by plans in the “yellow” zone, or a Rehabilitation Plan, as required under the Code to be adopted by plans in the “red” zone, is pending or has been implemented as of the end of the plan year that ended in 2021. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The stock-based compensation expense associated with the Hertz Holdings stock-based compensation plans is pushed down from Hertz Global and recorded on the books at the Hertz level. 2021 Omnibus Incentive Plan During the fourth quarter of 2021, Hertz Global's Board approved the Hertz Global Holdings, Inc. 2021 Omnibus Incentive Plan (the “2021 Omnibus Plan"). The 2021 Omnibus Plan is intended to satisfy the requirement as provided in the Plan of Reorganization to adopt a new management incentive equity plan. In accordance with the Plan of Reorganization, the Company is initially authorized to issue up to 62,250,055 shares of its common stock pursuant to awards granted under the 2021 Omnibus Plan. In addition, beginning on June 30, 2022, and ending on June 20, 2031 (an “Evergreen Date”), the total authorized shares under the 2021 Omnibus Plan will automatically increase by a number of shares equal to 2% of the total number of shares of the Company's common stock outstanding on the June 29th immediately preceding the applicable Evergreen Date. Notwithstanding the foregoing, the Company's Board may act prior to the Evergreen Date of a given year to provide that there will be no automatic increase for such year, or that the increase for such year will be a lesser number of shares. As of December 31, 2021, 56,840,434 shares of the Company's common stock are authorized and remain available for future grants under the 2021 Omnibus Plan. During the year ended December 31, 2021, compensation expense of $7 million and a related income tax benefit of $2 million was recognized for grants made under the 2021 Omnibus Plan. As of December 31, 2021, there was $105 million of total unrecognized compensation cost expected to be recognized over the remaining 2.8 years, on a weighted average basis, of the requisite service period that began on the grant dates. The 2021 Omnibus Plan provides for the award of stock options, stock appreciation rights ("SARs"), performance stock, PSUs, performance units ("PUs"), restricted stock, RSUs, share awards and deferred stock units to eligible recipients. Under the 2021 Omnibus Plan, the Compensation Committee of the Board (the "Compensation Committee") has the authority to determine the eligible recipients to whom awards may be granted, the types of awards and their terms or conditions. Stock Options and SARs The 2021 Omnibus Plan provides that stock option grants may be either incentive stock options or non-statutory stock options, however, the Company may not grant incentive stock options until such time as the plan has been approved by the Company's stockholders. Except in the case of replacement awards, stock options will have an exercise price per share that is no less than fair market value of the Company's common stock on the stock option grant date. SARs may be granted to participants in tandem with stock options or on their own. Unless otherwise determined by the Compensation Committee at or after the grant date, tandem SARs will have substantially similar terms as the stock options with which they are granted. Generally, each SAR will entitle the participant upon exercise to an amount (in cash, shares or a combination of cash and shares, as determined by the Compensation Committee) equal to the product of (i) the excess of (A) the fair market value on the exercise date of one share of common stock, over (B) the strike price per share, times (ii) the number of shares of common stock covered by the SAR. The Company accounts for stock options as equity-classified awards and recognizes compensation cost on a straight-line basis over the vesting period. The value of each stock option award is estimated on the grant date using a Black-Scholes option valuation model that incorporates the assumptions noted in the following table. The Company calculates the expected volatility based on the historical movement of its stock price. Grants Assumption 2021 Expected volatility 75 % Expected dividend yield — % Expected term (years) 6 Risk-free interest rate 1.19 % Weighted-average grant date fair value $ 17.12 A summary of stock option activity under the 2021 Omnibus Plan as of December 31, 2021 is presented below: Options Shares Weighted Weighted- Aggregate Intrinsic Outstanding as of January 1, 2021 — $ — — $ — Granted 3,682,215 26.17 — — Exercised — — — — Forfeited or Expired (3,360) 26.17 — — Outstanding as of December 31, 2021 3,678,855 26.17 9.9 — Exercisable as of December 31, 2021 — — — — Non-vested as of December 31, 2021 3,678,855 Performance Stock Awards, Performance Stock Units and Performance Units PSAs, PSUs and PUs granted under the 2021 Omnibus Plan will vest based on the achievement of predetermined performance goals over performance periods determined by the Compensation Committee or upon the occurrence of certain events, as determined by the Compensation Committee. PSAs are awards of common stock that are subject to forfeiture until predetermined performance conditions have been achieved. A PSU is a contractual right to receive a stated number of shares of common stock, or if provided by the Compensation Committee on or after the grant date, cash equal to the fair market value of such shares of common stock or any combination of shares of common stock and cash having an aggregate fair market value equal to such stated number of shares of common stock, which right is forfeitable until the achievement of predetermined performance conditions. PUs represent the right to receive a cash denominated award, payable in cash or shares of common stock or a combination thereof, and are forfeitable until the achievement of predetermined performance conditions. As of December 31, 2021, there were no issued or outstanding grants of PSAs, PSUs or PUs under the 2021 Omnibus Plan. Restricted Stock and Restricted Stock Units Restricted stock and RSUs granted under the Omnibus Plan will vest based on a minimum period of service or the occurrence of events specified by the Compensation Committee. Restricted stock and RSUs are subject to forfeiture until vested. Compensation expense for RSUs is based on the grant date fair value, and is recognized ratably over the vesting period. For grants issued in 2021, the vesting period is three years except for 500,000 shares which will vest in the first half of 2022. A summary of RSU activity as of and for the year ended December 31, 2021 under the 2021 Omnibus Plan is presented below: Shares Weighted- Aggregate Intrinsic Outstanding as of January 1, 2021 — $ — $ — Granted 1,727,406 26.17 — Vested — — — Forfeited or Expired (1,120) 26.17 — Outstanding as of December 31, 2021 1,726,286 26.17 43 Additional information pertaining to RSU activity under the 2021 Omnibus Plan was as follows: Years Ended December 31, 2021 Total fair value of awards that vested (in millions) $ — Weighted-average grant-date fair value of awards 26.17 Deferred Stock Units Each deferred stock unit granted under the 2021 Omnibus Plan represents a contractual right to receive a stated number of shares of common stock of the Company or if provided by the Compensation Committee in accordance with the 2021 Omnibus Plan on or after the grant date, cash equal to the fair value of such shares of common stock or any combination of shares of common stock and cash having an aggregate fair market value equal to such stated number of shares of common stock, on a specified future date. During the year ended December 31, 2021, there were approximately 24,000 outstanding shares of deferred stock units under the 2021 Omnibus Plan. 2016 Omnibus Incentive Plan On the Effective Date, in accordance with the Plan of Reorganization, all existing common stock and outstanding equity awards under the 2016 Omnibus Incentive Plan (the "2016 Omnibus Plan") were cancelled without any distribution, and the 2016 Omnibus Plan was deemed to be cancelled. As a result, the Company recognized $10 million related to the unrecognized portion of share-based compensation under the terminated 2016 Omnibus Plan in reorganization expense during the second quarter of 2021, which is reflected in the Company's consolidated statement of operations for the year ended December 31, 2021. See Note 21, "Reorganization Items, Net." As amended, the 2016 Omnibus Plan contained 11,767,723 shares which were available to grant pursuant to the terms and conditions of the 2016 Omnibus Plan before its termination on the Effective Date. A summary of the total compensation expense and associated income tax benefits recognized for the 2016 Omnibus Plan, including the cost of stock options, RSUs, PSUs and PSAs is as follows: Years Ended December 31, (In millions) 2021 2020 2019 Compensation expense (credit) $ 3 $ (2) $ 18 Income tax provision (benefit) (1) — (2) Total $ 2 $ (2) $ 16 As of December 31, 2021, there was no unrecognized compensation cost related to the 2016 Omnibus Plan as the plan was deemed cancelled on the Effective Date. Stock Options and SARs All stock options and SARs granted under the 2016 Omnibus Plan had a per-share exercise price of not less than the fair market value of one share of Hertz Global's common stock on the grant date. Stock options and SARs vested based on a minimum period of service or the occurrence of events (such as a change in control, as defined in the 2016 Omnibus Plan) specified by the Compensation Committee of the Board. No stock options or SARs were exercisable after a maximum of ten years from the grant date. The Company accounted for stock options as equity-classified awards and recognized compensation cost on a straight-line basis over the vesting period. The value of each option award was estimated on the grant date using a Black-Scholes option valuation model that incorporated the assumptions noted in the following table. The Company calculated the expected volatility based on the historical movement of its stock price. Grants Assumption 2021 (1) 2020 (1) 2019 (2) Expected volatility — % — % 68.5 % Expected dividend yield — % — % — % Expected term (years) 0 0 7 Risk-free interest rate — % — % 1.93 % Weighted-average grant date fair value $ — $ — $ 9.19 (1) There were no options approved to be granted by the Compensation Committee in 2021 or 2020. (2) Options granted in 2019 were solely related to the incremental grants awarded as part of the 2019 Rights Offering, as disclosed in Note 16, "Equity and Mezzanine Equity – Hertz Global." A summary of stock option activity under the 2016 Omnibus Plan as of December 31, 2021 is presented below: Options Shares Weighted Weighted- Aggregate Intrinsic Outstanding as of January 1, 2021 99,038 $ 34.76 2.3 $ — Granted — — — — Exercised — — — — Forfeited or Expired (1) (99,038) 34.76 — — Outstanding as of December 31, 2021 — — — — Exercisable as of December 31, 2021 — — — — (1) Includes all remaining outstanding stock options that were deemed to be cancelled on the Effective Date. A summary of non-vested stock option activity under the 2016 Omnibus Plan as of December 31, 2021 is presented below: Non-vested Weighted- Weighted-Average Non-vested as of January 1, 2021 23,249 $ 18.07 $ 9.06 Granted — — — Vested — — — Forfeited or expired (1) (23,249) 18.07 9.06 Non-vested as of December 31, 2021 — — — (1) Includes all outstanding non-vested stock options that were deemed to be cancelled on the Effective Date. Additional information pertaining to stock option activity under the 2016 Omnibus Plan is as follows: Years Ended December 31, (In millions) 2021 2020 2019 Aggregate intrinsic value of stock options exercised $ — $ — $ — Cash received from the exercise of stock options — — — Fair value of options that vested — — 5 Tax benefit realized on exercise of stock options — — — Performance Stock Awards, Performance Stock Units, Restricted Stock and Restricted Stock Units The 2020 threshold performance achievement set forth in the 2018, 2019 and 2020 PSU awards under the 2016 Omnibus Plan failed to be met due to the COVID-19 pandemic impact on the Company's financial results. Additionally, on August 4, 2020, in recognition of the Chapter 11 Cases, all long-term incentive plans were frozen and as such, no additional common shares of the Company could be issued for PSA, PSU, or RSU equity awards under the 2016 Omnibus Plan. A summary of the PSU and PSA activity as of December 31, 2021 under the 2016 Omnibus Plan is presented below: Shares Weighted- Aggregate Intrinsic Outstanding as of January 1, 2021 1,813,305 $ 16.47 $ 2 Granted — — — Vested — — — Forfeited or Expired (1) (1,813,305) 16.47 — Outstanding as of December 31, 2021 — — — (1) Included all outstanding PSUs and PSAs under the 2016 Omnibus Plan that were deemed to be cancelled on the Effective Date. A summary of RSU activity as of and for the year ended December 31, 2021 under the 2016 Omnibus Plan is presented below: Shares Weighted- Aggregate Intrinsic Outstanding as of January 1, 2021 782,056 $ 15.11 $ 1 Granted — — — Vested — — — Forfeited or Expired (1) (782,056) 15.11 — Outstanding as of December 31, 2021 — — — (1) Included all outstanding RSUs under the 2016 Omnibus Plan that were deemed to be cancelled on the Effective Date. Additional information pertaining to RSU activity under the 2016 Omnibus Plan is as follows: Years Ended December 31, 2021 2020 2019 Total fair value of awards that vested (In millions) $ — $ 8 $ 12 Weighted-average grant date fair value of awards — 12.18 18.66 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases | Leases The Company adopted Topic 842 in accordance with the effective date on January 1, 2019. In the Revenue Recognition section of Note 2, "Significant Accounting Policies," the Company discloses 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, is accounted for under Topic 842. The Company enters into certain agreements as a lessor under which it rents vehicles and leases fleets to customers. The Company enters into certain agreements as a lessee to rent real estate, vehicles and other equipment and to conduct its vehicle rental operations under concession agreements. If any of the following criteria are met, the Company classifies the lease as a financing lease (as a lessee) or as a direct financing or sales-type lease (both as a lessor): • The lease transfers ownership of the underlying asset to the lessee by the end of the lease term; • The lease grants the lessee an option to purchase the underlying asset that the Company is reasonably certain to exercise; • The lease term is for 75% or more of the remaining economic life of the underlying asset, unless the commencement date falls within the last 25% of the economic life of the underlying asset; • The present value of the sum of the lease payments equals or exceeds 90% of the fair value of the underlying asset; or • The underlying asset is of such a specialized nature that it is expected to have no alternative use to the lessor at the end of the lease term. Leases that do not meet any of the above criteria are accounted for as operating leases. The Company combines lease and non-lease components in its contracts under Topic 842, when permissible. The following further describes the Company's leasing transactions. Lessor The Company's operating leases for vehicle rentals have rental periods that are typically short term (e.g., daily or weekly) and can generally be extended for up to one month or terminated at the customer's discretion. Rental charges are computed on a limited or unlimited mileage rate, or on a time rate plus a mileage charge. In connection with the vehicle rental, the Company offers supplemental equipment rentals (e.g., child seats and ski racks) which are deemed lease components. The Company also offers value-added services in connection with the vehicle rental, which are deemed non-lease components, such as loss or collision damage waiver, theft protection, liability and personal accident/effects insurance coverage, premium emergency roadside service and satellite radio. Additionally, the Company charges for variable services primarily consisting of tolls and refueling charges incurred during the rental period, and for fees associated with the early or late termination of the vehicle lease. The Company mitigates residual value risk of its revenue earning vehicles by utilizing manufacturer repurchase and guaranteed depreciation programs, using sophisticated vehicle diagnostic and repair equipment to maintain the condition of its vehicles and through periodic reviews of vehicle depreciation rates based on management's ongoing assessment of present and estimated future market conditions. Prior to the Donlen Sale on March 30, 2021, as further disclosed in Note 3, "Divestitures," the Company had operating leases for fleets as part of its Donlen business which had lease periods that were typically for twelve months, after which the lease converted to a month-to-month lease, allowing the vehicle to be surrendered any time thereafter. These leases contained terminal rental adjustment clauses which were considered variable charges. The following table summarizes the amount of operating lease income and other income included in total revenues in the accompanying consolidated statements of operations for the years ended December 31, 2021, 2020 and 2019: (In millions) 2021 2020 2019 Operating lease income from vehicle rentals $ 6,885 $ 4,320 $ 8,579 Operating lease income from fleet leasing 149 639 674 Variable operating lease income 131 30 164 Revenue accounted for under Topic 842 7,165 4,989 9,417 Revenue accounted for under Topic 606 171 269 362 Total revenues $ 7,336 $ 5,258 $ 9,779 Lessee As a lessee, the Company has the following types of operating leases: • Concession agreements which grant the Company the right to conduct its vehicle rental operations at airports, hotels and train stations and to use building space such as terminal counters and parking garages; • Real estate leases for its off airport vehicle rental locations and other premises; • Revenue earning vehicle leases; and • Other equipment leases. The Company's lease terms generally range from one month to thirty-five years and a number of agreements contain escalation clauses, which increase the payment obligation based on a fixed or variable rate and renewal options. The length of renewals vary and may result in different payment terms. Payment terms are based on fixed rates explicit in the lease, including guaranteed minimums and/or variable rates based on: • Operating expenses, such as common area charges, real estate taxes and insurance; • A percentage of revenues or sales arising at the relevant premises; and/or • Periodic inflation adjustments. The Company recognizes a right-of-use asset and lease liability in its accompanying consolidated balance sheets for leases with a term greater than twelve months. Options to extend or terminate a lease are included in the Company's right-of-use asset and lease liability when it is reasonably certain that such options will be exercised. The Company does not recognize right-of-use assets or lease liabilities for short-term leases (i.e., those with a term of twelve months or less) and recognizes lease expense on a straight-line basis over the lease term, as applicable. To determine the present value of its lease payments, the Company utilizes the interest rate implicit in the lease agreement. If the implicit interest rate cannot be determined in the lease agreement, the Company utilizes the Company's collateralized incremental borrowing rate as of the date of adoption, January 1, 2019, or the commencement date of the lease, whichever is later. As a result of the impact from COVID-19 as disclosed in Note 1, "Background," the Company received rent concessions in the form of abatement and payment deferrals of fixed and variable rent payments for its airport and off airport locations in the amount of approximately $300 million during the year ended December 31, 2020, which substantially represented amounts previously due in 2020. The Company elected to apply the accounting relief provided by the FASB and elected to not evaluate whether the concession was a modification. The Company accounted for the concession as if it was part of the existing contract. In 2021 and 2020, the Bankruptcy Court entered the Lease Rejection Orders which applied, in the aggregate, to 278 and 359 off airport locations, respectively, and to 34 and 66 airport locations, respectively, in the Company's Americas RAC segment. The following table summarizes the amount of lease costs incurred by the Company for the years ended December 31, 2021, 2020 and 2019: Years ended December 31, (In millions) 2021 2020 2019 Minimum fixed lease costs: Short-term lease costs $ 171 $ 142 $ 130 Operating lease costs 449 527 545 Total 620 669 $ 675 Variable lease costs 165 23 326 Total lease costs $ 785 $ 692 $ 1,001 The following summarizes the weighted-average remaining lease term and weighted-average discount rate for the Company's operating leases as a lessee as of December 31, 2021: Weighted-average remaining lease term (in years) 11.8 Weighted-average discount rate 10.3 % The following table summarizes the Company's minimum fixed lease obligations under existing agreements as a lessee, excluding variable concession obligations in excess of minimum annual guarantees and short-term leases, as of December 31, 2021: (In millions) 2022 $ 390 2023 341 2024 275 2025 212 2026 165 After 2026 1,153 Total lease payments 2,536 Interest (1,026) Operating lease liabilities as of December 31, 2021 $ 1,510 |
Leases | Leases The Company adopted Topic 842 in accordance with the effective date on January 1, 2019. In the Revenue Recognition section of Note 2, "Significant Accounting Policies," the Company discloses 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, is accounted for under Topic 842. The Company enters into certain agreements as a lessor under which it rents vehicles and leases fleets to customers. The Company enters into certain agreements as a lessee to rent real estate, vehicles and other equipment and to conduct its vehicle rental operations under concession agreements. If any of the following criteria are met, the Company classifies the lease as a financing lease (as a lessee) or as a direct financing or sales-type lease (both as a lessor): • The lease transfers ownership of the underlying asset to the lessee by the end of the lease term; • The lease grants the lessee an option to purchase the underlying asset that the Company is reasonably certain to exercise; • The lease term is for 75% or more of the remaining economic life of the underlying asset, unless the commencement date falls within the last 25% of the economic life of the underlying asset; • The present value of the sum of the lease payments equals or exceeds 90% of the fair value of the underlying asset; or • The underlying asset is of such a specialized nature that it is expected to have no alternative use to the lessor at the end of the lease term. Leases that do not meet any of the above criteria are accounted for as operating leases. The Company combines lease and non-lease components in its contracts under Topic 842, when permissible. The following further describes the Company's leasing transactions. Lessor The Company's operating leases for vehicle rentals have rental periods that are typically short term (e.g., daily or weekly) and can generally be extended for up to one month or terminated at the customer's discretion. Rental charges are computed on a limited or unlimited mileage rate, or on a time rate plus a mileage charge. In connection with the vehicle rental, the Company offers supplemental equipment rentals (e.g., child seats and ski racks) which are deemed lease components. The Company also offers value-added services in connection with the vehicle rental, which are deemed non-lease components, such as loss or collision damage waiver, theft protection, liability and personal accident/effects insurance coverage, premium emergency roadside service and satellite radio. Additionally, the Company charges for variable services primarily consisting of tolls and refueling charges incurred during the rental period, and for fees associated with the early or late termination of the vehicle lease. The Company mitigates residual value risk of its revenue earning vehicles by utilizing manufacturer repurchase and guaranteed depreciation programs, using sophisticated vehicle diagnostic and repair equipment to maintain the condition of its vehicles and through periodic reviews of vehicle depreciation rates based on management's ongoing assessment of present and estimated future market conditions. Prior to the Donlen Sale on March 30, 2021, as further disclosed in Note 3, "Divestitures," the Company had operating leases for fleets as part of its Donlen business which had lease periods that were typically for twelve months, after which the lease converted to a month-to-month lease, allowing the vehicle to be surrendered any time thereafter. These leases contained terminal rental adjustment clauses which were considered variable charges. The following table summarizes the amount of operating lease income and other income included in total revenues in the accompanying consolidated statements of operations for the years ended December 31, 2021, 2020 and 2019: (In millions) 2021 2020 2019 Operating lease income from vehicle rentals $ 6,885 $ 4,320 $ 8,579 Operating lease income from fleet leasing 149 639 674 Variable operating lease income 131 30 164 Revenue accounted for under Topic 842 7,165 4,989 9,417 Revenue accounted for under Topic 606 171 269 362 Total revenues $ 7,336 $ 5,258 $ 9,779 Lessee As a lessee, the Company has the following types of operating leases: • Concession agreements which grant the Company the right to conduct its vehicle rental operations at airports, hotels and train stations and to use building space such as terminal counters and parking garages; • Real estate leases for its off airport vehicle rental locations and other premises; • Revenue earning vehicle leases; and • Other equipment leases. The Company's lease terms generally range from one month to thirty-five years and a number of agreements contain escalation clauses, which increase the payment obligation based on a fixed or variable rate and renewal options. The length of renewals vary and may result in different payment terms. Payment terms are based on fixed rates explicit in the lease, including guaranteed minimums and/or variable rates based on: • Operating expenses, such as common area charges, real estate taxes and insurance; • A percentage of revenues or sales arising at the relevant premises; and/or • Periodic inflation adjustments. The Company recognizes a right-of-use asset and lease liability in its accompanying consolidated balance sheets for leases with a term greater than twelve months. Options to extend or terminate a lease are included in the Company's right-of-use asset and lease liability when it is reasonably certain that such options will be exercised. The Company does not recognize right-of-use assets or lease liabilities for short-term leases (i.e., those with a term of twelve months or less) and recognizes lease expense on a straight-line basis over the lease term, as applicable. To determine the present value of its lease payments, the Company utilizes the interest rate implicit in the lease agreement. If the implicit interest rate cannot be determined in the lease agreement, the Company utilizes the Company's collateralized incremental borrowing rate as of the date of adoption, January 1, 2019, or the commencement date of the lease, whichever is later. As a result of the impact from COVID-19 as disclosed in Note 1, "Background," the Company received rent concessions in the form of abatement and payment deferrals of fixed and variable rent payments for its airport and off airport locations in the amount of approximately $300 million during the year ended December 31, 2020, which substantially represented amounts previously due in 2020. The Company elected to apply the accounting relief provided by the FASB and elected to not evaluate whether the concession was a modification. The Company accounted for the concession as if it was part of the existing contract. In 2021 and 2020, the Bankruptcy Court entered the Lease Rejection Orders which applied, in the aggregate, to 278 and 359 off airport locations, respectively, and to 34 and 66 airport locations, respectively, in the Company's Americas RAC segment. The following table summarizes the amount of lease costs incurred by the Company for the years ended December 31, 2021, 2020 and 2019: Years ended December 31, (In millions) 2021 2020 2019 Minimum fixed lease costs: Short-term lease costs $ 171 $ 142 $ 130 Operating lease costs 449 527 545 Total 620 669 $ 675 Variable lease costs 165 23 326 Total lease costs $ 785 $ 692 $ 1,001 The following summarizes the weighted-average remaining lease term and weighted-average discount rate for the Company's operating leases as a lessee as of December 31, 2021: Weighted-average remaining lease term (in years) 11.8 Weighted-average discount rate 10.3 % The following table summarizes the Company's minimum fixed lease obligations under existing agreements as a lessee, excluding variable concession obligations in excess of minimum annual guarantees and short-term leases, as of December 31, 2021: (In millions) 2022 $ 390 2023 341 2024 275 2025 212 2026 165 After 2026 1,153 Total lease payments 2,536 Interest (1,026) Operating lease liabilities as of December 31, 2021 $ 1,510 |
Restructuring
Restructuring | 12 Months Ended |
Dec. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring Europe Restructuring Due to the continued impact from COVID-19 as disclosed in Note 1, "Background," and reductions in European government support, the Company initiated a restructuring program in March 2021 in its International RAC segment. The total number of employees affected for the year ended December 31, 2021 was approximately 900. The program is expected to be completed in 2022. U.S. Restructuring Due to the impact from COVID-19 as disclosed in Note 1, "Background," the Company initiated a restructuring program beginning in April 2020, affecting approximately 11,000 U.S. employees in its Americas RAC segment and corporate operations. This program was substantially completed in the third quarter of 2020. Restructuring Charges Restructuring charges under these programs are as follows: Years ended December 31, (In millions) 2021 2020 By Type: Termination benefits $ 27 $ 37 Lease and contract terminations 3 $ — Facility closures 2 — Total $ 32 $ 37 Years ended December 31, (In millions) 2021 2020 By Caption: Direct vehicle and operating $ 16 $ 25 Selling, general and administrative 16 12 Total $ 32 $ 37 Years ended December 31, (In millions) 2021 2020 By Segment: Americas RAC segment $ — $ 34 International RAC segment 32 — Corporate operations — 3 Total $ 32 $ 37 The tables above do not include pension-related settlement charges incurred during the year ended December 31, 2020. See Note 7, "Employee Retirement Benefits." The following table summarizes the activity affecting the restructuring accrual, which is recorded in accrued liabilities or, for the year ended December 31, 2020, reclassified to liabilities subject to compromise in the accompanying consolidated balance sheet. (In millions) Termination Other Total Balance as of December 31, 2019 $ 1 $ — $ 1 Charges incurred 37 — 37 Cash payments (29) — (29) Classified to liabilities subject to compromise (1) (7) — (7) Other (2) — (2) Balance as of December 31, 2020 — — — Charges incurred 27 5 32 Cash payments (32) — (32) Other non-cash reductions — (3) (3) Reclassified from liabilities subject to compromise (1) 7 — 7 Balance as of December 31, 2021 $ 2 $ 2 $ 4 (1) As a result of filing the Chapter 11 Cases, the Company classified $7 million of restructuring charges to liabilities subject to compromise in the accompanying consolidated balance sheet as of December 31, 2020. On the Effective Date, in connection with the Plan of Reorganization, the Company reclassified $7 million of accrued and unpaid restructuring charges from liabilities subject to compromise. See Note 20, "Liabilities Subject to Compromise." |
Income Tax (Provision) Benefit
Income Tax (Provision) Benefit | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Tax (Provision) Benefit | Income Tax (Provision) Benefit The components of income (loss) before income taxes for the Company's domestic and foreign operations are as follows: Hertz Global As of December 31, (In millions) 2021 2020 2019 Domestic $ 710 $ (1,692) $ 28 Foreign (27) (360) (15) Total income (loss) before income taxes $ 683 $ (2,052) $ 13 Hertz As of December 31, (In millions) 2021 2020 2019 Domestic $ 1,501 $ (1,823) $ 35 Foreign (27) (360) (15) Total income (loss) before income taxes $ 1,474 $ (2,183) $ 20 The total income tax provision (benefit) consists of the following: Hertz Global and Hertz As of December 31, (In millions) 2021 2020 2019 Current: Federal $ — $ — $ — Foreign 24 18 20 State and local 21 4 16 Total current 45 22 36 Deferred: Federal 252 (356) 1 Foreign 19 35 (1) State and local 2 (30) 27 Total deferred 273 (351) 27 Total provision (benefit) - Hertz Global 318 (329) 63 Federal deferred tax (provision) benefit applicable to Hertz Holdings — 1 2 Total provision (benefit) - Hertz $ 318 $ (328) $ 65 The principal items of the U.S. and foreign net deferred tax assets and liabilities are as follows: Hertz Global and Hertz As of December 31, (In millions) 2021 2020 Deferred tax assets: Employee benefit plans $ 14 $ 44 Net operating loss carry forwards 1,321 825 Capital loss carryforwards 167 3 Federal and state tax credit carry forwards 64 55 Accrued and prepaid expenses 195 124 Operating lease liabilities 390 390 Total deferred tax assets 2,151 1,441 Less: valuation allowance (690) (651) Total net deferred tax assets 1,461 790 Deferred tax liabilities: Depreciation on tangible assets (1,342) (380) Intangible assets (711) (723) Operating lease right-of-use assets (408) (406) Total deferred tax liabilities (2,461) (1,509) Net deferred tax liability - Hertz Global (1,000) (719) Deferred tax asset - net operating loss applicable to Hertz Holdings (3) (5) Net deferred tax liability - Hertz $ (1,003) $ (724) Hertz Global and Hertz In determining valuation allowances, an assessment of positive and negative evidence was performed regarding realization of the deferred tax assets. This assessment included the evaluation of cumulative earnings and losses in recent years, scheduled reversals of deferred tax liabilities, the availability of carryforwards and the remaining period of the respective carry forward, future taxable income and any applicable tax-planning strategies that are available. As of December 31, 2021, the Company has U.S. federal net operating loss carryforwards ("Federal NOLs") of approximately $4.0 billion, $839 million tax effected and federal tax credits of approximately $28 million. Federal NOLs have an indefinite carryforward period, which may offset 80% of taxable income generated in any future year. The federal tax credits begin expiring in 2035. The Company has not recorded a valuation allowance on its Federal NOLs or federal tax credits as there were adequate U.S. deferred tax liabilities that could be realized within the carry forward periods. During 2021 as part of a restructuring of the European operations, we generated a tax loss of approximately $1.3 billion, which was characterized as a capital loss in the 2021 provision. Separately, the company generated approximately $600 million of taxable capital gains on the disposition of the Donlen Corporation. As a result, the Company has approximately $670 million, $141 million U.S, federal tax-effected, of capital loss carryforward for which a full valuation allowance is recorded. The Company has filed a request for a pre-filing agreement with the Internal Revenue Service to determine whether the capital loss on European restructuring qualifies as an ordinary loss. As of December 31, 2021, the Company has state net operating loss carryforwards ("State NOLs") of approximately $4.8 billion of which $1.0 billion have an indefinite utilization period with remaining State NOLs beginning to expire in 2022. The tax effected State NOLs are recorded as a deferred tax asset in the amount of $245 million, and are offset, in part, by a valuation allowance totaling $171 million. In addition, as of December 31, 2021, the Company had approximately $35 million in state tax credits that are fully offset by a valuation allowance. The state tax credits expire over various years beginning in 2022 depending upon when they were generated and the particular jurisdiction. As of December 31, 2021, the Company has foreign net operating loss carry forwards ("Foreign NOLs") of approximately $1.0 billion, of which $911 million have an indefinite utilization period with the remaining Foreign NOLs beginning to expire in 2024. The tax effected Foreign NOLs are recorded as a deferred tax asset of $239 million, and are offset by valuation allowances totaling $239 million. In addition, as of December 31, 2021, the Company has no tax credits in foreign jurisdictions. Due to the ownership changes before and upon emergence form Chapter 11, the utilization of the Company's Federal, State and Foreign NOLs may be subject to limitations. Estimates of these limitations have been reflected in the tax provision. The significant items in the reconciliation of the statutory and effective income tax rates consists of the following items in the table below. Percentages are calculated from the underlying numbers in thousands, and as a result, may not agree to the amount when calculated in millions. Hertz Global and Hertz Years Ended December 31, 2021 2020 2019 Statutory federal tax rate 21 % 21 % 21 % State and local income taxes, net of federal effect 7 5 (102) Change in state rates, net of federal effect 2 1 (17) Foreign tax rate differential — — (31) Change in foreign statutory rates (2) — 15 Federal and foreign permanent differences 1 — (3) Tax credits (1) — (75) Withholding taxes 1 — 62 Valuation allowance 11 (11) 591 Change in fair value of public warrants 22 — — Non-deductible bankruptcy expenses 15 — — European reorganization (46) — — Uncertain tax positions 12 — 29 U.S. tax on foreign earnings 2 — — Stock option shortfalls — — 7 Other 2 — 3 Effective tax rate - Hertz Global 47 16 500 Hertz Holdings exclusive items (25) (1) (174) Effective tax rate - Hertz 22 % 15 % 326 % The Company recorded a tax provision in 2021 compared to a tax benefit in 2020. The change was primarily driven by improvements in the Company's financial performance in 2021, changes in the mix of earnings and losses in jurisdictions for which no tax benefit can be recognized, non-deductible bankruptcy expenses, and reduced by the tax benefits of the European reorganization. Hertz Holdings exclusive items are comprised of transactions specific to Hertz Holdings only. The Company recorded a tax benefit in 2020 compared to a tax provision in 2019. The change was due primarily to significant losses in 2020 resulting from the effect of COVID-19, offset, in part, by the impact of valuation allowances on net deferred tax assets. As of December 31, 2021, total unrecognized tax benefits are $106 million and, if settled, $35 million would favorably impact the effective tax rate in future periods. However, considering correlative adjustments associated with some uncertain tax positions, the net impact on the income tax provision would be approximately $9 million if settled. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: Hertz Global and Hertz Years Ended December 31, (In millions) 2021 2020 2019 Balance as of January 1 $ 53 $ 48 $ 49 Increase (decrease) attributable to tax positions taken during prior periods 65 5 5 Increase (decrease) attributable to tax positions taken during the current year 19 1 1 Decrease attributable to settlements with taxing authorities (31) (1) (7) Balance as of December 31 $ 106 $ 53 $ 48 The Company is subject to examination by taxing authorities throughout the world. The tax years that are open for examination span from 2008 to 2021. During 2020, the IRS proposed transfer pricing adjustments to the Company's 2014 and 2015 tax years, for which the company is pursuing competent authority relief. In the second quarter of 2021, the IRS concluded its audit of the Company's 2016 tax year which resulted in no audit adjustments. During June 2021, the Company received final resolution to its request for competent authority relief concerning a German and U.S. transfer pricing matter covering the 2005 - 2010 tax years. The Company has reassessed its uncertain tax positions upon receipt of the new information for tax years 2011 - 2021, which did not result in a material adjustment as it reduced an NOL with a full valuation allowance. The Company's assumptions and estimates pertaining to uncertain tax positions require significant judgment. It is possible that the tax authorities could challenge the Company's estimates and assumptions used to assess the tax benefits, and the actual amount of the tax benefits related to uncertain tax positions may differ materially from these estimates. Additionally, the Company is under audit in several U.S. states and other foreign jurisdictions, and it is reasonably possible that the amount of unrecognized tax benefits may change as the result of the completion of ongoing examinations, the expiration of the statute of limitations or other unforeseen circumstances. The amount that is reasonably possible to change during the next twelve months is not expected to be significant. Net, after-tax interest and penalties related to tax liabilities are classified as a component of income tax in the accompanying consolidated statements of operations which were not significant for the years ended December 31, 2021, 2020 and 2019. Net, after-tax interest and penalties were accrued as a component of tax in the Company's consolidated balance sheet in the amount of $7 million and $9 million as of December 31, 2021 and 2020, respectively. Beginning the first quarter of 2020, Hertz Global no longer asserts permanent reinvestment of foreign earnings with respect to its non-U.S. earnings, due to the impact from COVID-19 as disclosed in Note 1, "Background." |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value MeasurementsUnder U.S. GAAP, entities are allowed to measure certain financial instruments and other items at fair value. The Company has not elected the fair value measurement option for any of its assets or liabilities that meet the criteria for this option. Irrespective of the fair value option previously described, U.S. GAAP requires certain financial and non-financial assets and liabilities of the Company to be measured on either a recurring basis or on a nonrecurring basis. Fair Value Disclosures The fair value of cash, restricted cash, accounts receivable, accounts payable and accrued liabilities, to the extent the underlying liability will be settled in cash, approximates the carrying values because of the short-term nature of these instruments. Debt Obligations The fair value of the debt facilities 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 (i.e. Level 2 inputs). December 31, 2021 December 31, 2020 (In millions) Nominal Unpaid Principal Balance Aggregate Fair Value Nominal Unpaid Principal Balance Aggregate Fair Value Non-Vehicle Debt (1) $ 3,055 $ 3,065 $ 4,747 $ 3,382 Vehicle Debt 7,954 7,908 6,087 6,021 Total $ 11,009 $ 10,973 $ 10,834 $ 9,403 (1) Includes Non-Vehicle Debt included in liabilities subject to compromise in the accompanying consolidated balance sheet as of December 31, 2020. See Note 6, "Debt." Assets and Liabilities Measured at Fair Value on a Recurring Basis The following table summarizes the Company's cash equivalents, restricted cash equivalents and Public Warrants that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy as follows: December 31, 2021 December 31, 2020 (In millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Cash equivalents and restricted cash equivalents $ 1,678 $ — $ — $ 1,678 $ 723 $ — $ — $ 723 Liabilities: Public warrants $ 1,324 $ — $ — $ 1,324 $ — $ — $ — $ — Cash Equivalents and Restricted Cash Equivalents The Company’s cash equivalents and restricted cash equivalents primarily consist of investments in money market funds and bank money market and interest-bearing accounts. The Company determines the fair value of cash equivalents and restricted cash equivalents using a market approach based on quoted prices in active markets (i.e. Level 1 inputs). Public Warrants Under the Plan of Reorganization, reorganized Hertz Global issued Public Warrants, which are classified as liabilities at fair value in the accompanying consolidated balance sheet as of December 31, 2021 in accordance with the provisions of ASC 480, Distinguishing Liabilities from Equity ("Topic 480"). See Note 18, "Public Warrants - Hertz Global," for further details. Upon issuance on the Effective Date, the initial fair value of the Public Warrants was $800 million. The Company calculates the fair value based on the end-of-day quoted market price, a Level 1 input of the fair value hierarchy. For the year ended December 31, 2021, the fair value adjustment was a loss of $627 million and is recorded in change in fair value of Public Warrants in the accompanying consolidated statement of operations for Hertz Global for the year ended December 31, 2021. Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis Donlen Assets As of December 31, 2020 as a result of the then-impending Donlen Sale, the associated assets and liabilities were classified as assets held for sale and liabilities held for sale, respectively, in the accompanying consolidated balance sheet as of December 31, 2020 and were recorded at the lower of carrying value or fair value less any costs to sell. The Company completed the Donlen Sale on March 30, 2021. See Note 3, "Divestitures," for additional information. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2021 | |
Accumulated Other Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Changes in the accumulated other comprehensive income (loss) balance by component (net of tax) is as follows: (In millions) Pension and Other Post-Employment Benefits Foreign Currency Items Unrealized Losses from Currency Translation Adjustments on Terminated Net Investment Hedges Accumulated Other Comprehensive Income (Loss) Balance as of January 1, 2021 $ (122) $ (71) $ (19) $ (212) Other comprehensive income (loss) before reclassification 22 (36) — (14) Amounts reclassified from accumulated other comprehensive income (loss) 12 — — 12 Balance as of December 31, 2021 $ (88) $ (107) $ (19) $ (214) (In millions) Pension and Other Post-Employment Benefits Foreign Currency Items Unrealized Losses from Currency Translation Adjustments on Terminated Net Investment Hedges Accumulated Other Comprehensive Income (Loss) Balance as of January 1, 2020 $ (118) $ (52) $ (19) $ (189) Other comprehensive income (loss) before reclassification (15) (19) — (34) Amounts reclassified from accumulated other comprehensive income (loss) 11 — — 11 Balance as of December 31, 2020 $ (122) $ (71) $ (19) $ (212) |
Contingencies and Off-Balance S
Contingencies and Off-Balance Sheet Commitments | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies and Off-Balance Sheet Commitments | Contingencies and Off-Balance Sheet Commitments Legal Proceedings Self-Insured Liabilities The Company is currently a defendant in numerous actions and has received numerous claims on which actions have not yet commenced for self-insured liabilities arising from the operation of motor vehicles rented from the Company. The obligation for self-insured liabilities on self-insured U.S. and international vehicles, as stated in the accompanying 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 an undiscounted basis and 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 December 31, 2021 and 2020, the Company's liability recorded for self-insured liabilities was $463 million and $488 million, respectively. The Company believes that its analysis is based on the most relevant information available, combined with reasonable assumptions. The liability is subject to significant uncertainties. The adequacy of the liability is regularly monitored based on evolving accident claim history and insurance related state legislation changes. If the Company's estimates change or if actual results differ from these assumptions, the amount of the recorded liability is adjusted to reflect these results. Loss Contingencies 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, former employees and governmental investigations. The Company has summarized below the material legal proceedings to which the Company was a party during the year ended December 31, 2021 or the period after December 31, 2021, but before the filing of this 2021 Annual Report. In re Hertz Global Holdings, Inc. Securities Litigation - In November 2013, a purported shareholder class action, Pedro Ramirez, Jr. v. Hertz Global Holdings, Inc., et al., was commenced in the U.S. District Court for the District of New Jersey naming Old Hertz Holdings and certain of its officers as defendants and alleging violations of the federal securities laws. The complaint alleged that Old Hertz Holdings made material misrepresentations and/or omissions of material fact in certain of its public disclosures 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. The complaint, as amended, was dismissed with prejudice on April 27, 2017 and on September 20, 2018, the Third Circuit affirmed the dismissal of the complaint with prejudice. On February 5, 2019, the plaintiffs filed a motion asking the federal district court to exercise its discretion and allow the plaintiffs to reinstate their claims to include additional allegations from the administrative order agreed to by the SEC and the Company in December 2018, which was supplemented by reference to the Company’s subsequently filed litigation against former executives (disclosed below). On September 30, 2019, the federal district court of New Jersey denied the plaintiffs’ motion for relief from the April 27, 2017 judgment and a related motion to allow the filing of a proposed fifth amended complaint. On October 30, 2019, the plaintiffs filed a notice of appeal with the U.S. Court of Appeals for the Third Circuit. The parties fully briefed the appeal and oral argument had been scheduled for June 19, 2020. As a result of the Company's bankruptcy, the appeal was stayed as to the Company, but the plaintiffs advocated that the appeal could proceed against the individual defendants. On October 13, 2020, the Third Circuit affirmed the District Court’s dismissal of the plaintiffs’ motion for relief against the individual defendants since the motion was not timely filed and the appeal as to the Company remained stayed. In February 2021, the parties participated in a bankruptcy-related mediation process and arrived at a tentative settlement wherein the Company would pay a $250,000 cash settlement. In return, the plaintiffs would voluntarily dismiss all claims in the underlying action with prejudice and withdraw the plaintiffs’ Proofs of Claim with prejudice. On March 12, 2021, the Bankruptcy Court approved the tentative settlement and the terms of the settlement have now been fully implemented. This matter is now closed. Make-Whole and Post-Petition Interest Claims - On July 1, 2021, Wells Fargo Bank, N.A., in its capacity as indenture trustee of (1) 6.250% Unsecured Notes due 2022, (2) 5.500% Unsecured Notes due 2024, (3) 7.125% Unsecured Notes due 2026, and (4) 6.000% Unsecured Notes due 2028 issued by The Hertz Corporation (collectively, the “Notes”), filed a complaint (the “Complaint”) against The Hertz Corporation, Dollar Rent A Car, Inc., Dollar Thrifty Automotive Group, Inc., Donlen Corporation, DTG Operations, Inc., DTG Supply, LLC, Firefly Rent A Car LLC, Hertz Car Sales LLC, Hertz Global Services Corporation, Hertz Local Edition Corp., Hertz Local Edition Transporting, Inc., Hertz System, Inc., Hertz Technologies, Inc., Hertz Transporting, Inc., Rental Car Group Company, LLC, Smartz Vehicle Rental Corporation, Thrifty Car Sales, Inc., Thrifty, LLC, Thrifty Insurance Agency, Inc., Thrifty Rent A Car System, LLC, and TRAC Asia Pacific, Inc. (collectively referred to in this summary as “Defendants”). The filing of the Complaint initiated the adversary proceeding captioned Wells Fargo Bank, National Association v. The Hertz Corporation, et al. pending in the United States Bankruptcy Court for the District of Delaware, Adv. Pro. No. 21-50995 (MFW). The Complaint seeks a declaratory judgment that the holders of the Unsecured Notes are entitled to payment of certain redemption premiums and post-petition interest that they assert total $271,684,720 plus interest at the contractual default rate or in the alternative are entitled to payment post-petition interest at the applicable contractual rate that they assert totals $124,512,653 plus interest at the New York statutory rate. On July 2, 2021, Defendants were summoned to file a motion or answer to the Complaint within 30 days. On August 2, 2021, the Defendants filed a motion to dismiss both counts for declaratory judgment, which was argued before Judge Walrath on November 9, 2021. On December 23, 2021, the Bankruptcy Court dismissed Wells Fargo’s claims with respect to (i) the redemption premium allegedly owed on the 2022 and 2024 Notes and (ii) post-petition interest at the contract rate. As a result, only Wells Fargo’s claims for a redemption premium with respect to the 2026 and 2028 Senior Notes now remain. Additionally, note holders that elected to participate in the 2021 Rights Offering waived their right to collect on the make whole premium. Therefore, since some of the 2026 and 2028 note holders elected to participate in the 2021 Rights Offering, the total amount which may be owed with respect to the asserted make whole premium for those series of notes will be reduced further. The Defendants dispute that any such amounts are owed and intend to respond and otherwise vigorously defend claims set forth therein. The Company cannot predict the outcome or timing of this litigation. Additionally, some creditors in the Chapter 11 Cases may assert that the Company owes additional interest and, in certain cases, additional make whole or other premiums. These claims could be material. The Company retains all rights with respect to any such asserted amounts and intends to vigorously defend against any such asserted claims. There can be no assurance regarding the outcome of any of the litigation regarding the validity or, if deemed valid, the amount of any such additional asserted interest and make whole claims and as such, the Company cannot predict the outcome or timing of this litigation. The Company maintains an internal compliance program through which it from time to time identifies 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 self-insured liabilities, none of those reserves are material. For matters 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 could be decided unfavorably to the Company or any of its subsidiaries involved. Accordingly, it is possible that an adverse outcome from such a proceeding could exceed the amount accrued in an amount that could be material to the Company's consolidated financial condition, results of operations or cash flows in any particular reporting period. Other Proceedings Litigation Against Former Executives - The Company filed litigation in the U.S. District Court for the District of New Jersey against Mark Frissora, Elyse Douglas and John Jefferey Zimmerman on March 25, 2019, and in state court in Florida against Scott Sider on March 28, 2019, all of whom were former executive officers of Old Hertz Holdings. The complaints predominantly allege breach of contract and seek repayment of incentive-based compensation received by the defendants in connection with restatements included in the Old Hertz Holdings Form 10-K for the year ended December 31, 2014 and related accounting for prior periods. The Company is also seeking recovery for the costs of the SEC investigation that resulted in an administrative order on December 31, 2018 with respect to events generally involving the restatements included in Old Hertz Holdings Form 10-K for the year ended December 31, 2014 and other damages resulting from the necessity of the restatements. The Company is pursuing these legal proceedings in accordance with its clawback policy and contractual rights. In October 2019, the Company entered into a confidential Settlement Agreement with Elyse Douglas. In September and October 2020, the judge in the New Jersey action entered orders requiring the parties and applicable insurers to attend and participate in mediation. The attorneys in the Florida action voluntarily agreed to participate in the same mediation which was held on November 30, 2020. The mediation was unsuccessful, but settlement discussions continued and, on April 14, 2021, the Bankruptcy Court approved a Settlement Agreement between the Company and Scott Sider. The Florida action is now closed. On December 29, 2021, the Company entered into a settlement agreement with Jeff Zimmerman, leaving Mark Frissora as the sole remaining defendant in this litigation. Fact discovery has now been completed in the New Jersey action and the case will proceed to the pre-trial phase of experts’ reports and experts’ depositions. Pursuant to the agreements governing the separation of Herc Holdings from Hertz Global that occurred on June 30, 2016, Herc Holdings is entitled to 15% of the net proceeds of any repayment or recovery. 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 has accrued for expected losses that are probable and estimable. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Transactions and Agreements between Hertz Holdings and Hertz In June 2019, Hertz entered into a master loan agreement with Hertz Holdings for a facility size of $425 million with an expiration in June 2020 (the "2019 Master Loan"). The interest rate was based on the U.S. Dollar LIBOR rate plus a margin. As a result of filing the Chapter 11 Cases, as disclosed in Note 1, "Background," the full amount outstanding under the 2019 Master Loan was deemed uncollectible, resulting in a charge of $133 million during the second quarter of 2020, which is included in the accompanying consolidated statement of operations for Hertz for the year ended December 31, 2020. Additionally, the loan due to an affiliate, which represents a tax-related liability from Hertz to Hertz Holdings, in the amount of $65 million was classified as liabilities subject to compromise in the accompanying consolidated balance sheet of Hertz as of December 31, 2020. On the Effective Date, the $65 million tax-related liability from Hertz to Hertz Holdings was reinstated. See Note 20, "Liabilities Subject to Compromise." As of December 31, 2021, the $65 million tax-related liability has been settled via a non-cash distribution from Hertz to Hertz Holdings. On May 23, 2020, Hertz entered into a new master loan agreement with Hertz Holdings for a facility size of $25 million with an expiration in May 2021 (the "New Loan"). The interest rate was based on the U.S. Dollar LIBOR rate plus a margin. As of December 31, 2020, there was $1 million outstanding under the New Loan representing advances and any accrued but unpaid interest. In May 2021, upon expiration of the New Loan, Hertz entered into a new master loan agreement with Hertz Holdings for a facility size of $25 million with an expiration in May 2022 (the "2021 Master Loan"), where amounts outstanding under the New Loan were transferred to the 2021 Master Loan. The interest rate is based on the U.S. Dollar LIBOR rate plus a margin. On the Effective Date, in connection with the Chapter 11 Emergence, the ATM Program contribution from Hertz Global, as disclosed in Note 16, "Equity and Mezzanine Equity – Hertz Global," was used to settle amounts outstanding under the New Loan. As of December 31, 2021, there was no outstanding balance under the 2021 Master Loan. Other Relationships In connection with its vehicle rental businesses, the Company enters into millions of rental transactions every year involving millions of customers. In order to conduct those businesses, the Company also procures goods and services from thousands of vendors. Some of those customers and vendors may be affiliated with members of the Company's Board. The Company believes that all such rental and procurement transactions involved terms no less favorable to the Company than those that it believes would have been obtained in the absence of such affiliation. The Company's Audit Committee oversees compliance through our Standards of Business Conduct, reviews conflicts of interest involving directors and determines whether to approve each transaction that involves the Company or any of its affiliates, on one hand, and (directly or indirectly) a director or member of his or her family or any entity managed by any such person, on the other hand. 767 Auto Leasing LLC In January 2018, Hertz entered into the 767 Lease Agreement pursuant to which Hertz granted 767, an entity affiliated with a related party until May 2020, the option to acquire certain vehicles from Hertz. The 767 Lease Agreement was terminated effective October 31, 2021 as disclosed in Note 3, "Divestitures." |
Equity and Mezzanine Equity _ H
Equity and Mezzanine Equity – Hertz Global | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Equity and Mezzanine Equity – Hertz Global | Equity and Mezzanine Equity – Hertz Global Emergence from Bankruptcy In connection with the Chapter 11 Emergence, all of Hertz Global's existing authorized, issued, and outstanding common and preferred stock were cancelled. As of the Effective Date, there are 1,000,000,000 shares of reorganized Hertz Global common stock and 100,000,000 shares of reorganized Hertz Global preferred stock authorized for issuance. On the Effective Date, in accordance with the Plan of Reorganization, reorganized Hertz Global issued common stock as follows: • 277,119,438 shares purchased by the Plan Sponsors; • 14,133,024 shares issued, pro rata, to existing stockholders; • 127,362,114 shares issued pursuant to the 2021 Rights Offering; and • 52,487,886 shares distributed to the Backstop Parties. As of the Effective Date, 471,102,462 shares of reorganized Hertz Global common stock and 1,500,000 shares of reorganized Hertz Global preferred stock were issued and outstanding. The parties, including the Plan Sponsors who purchased reorganized Hertz Global common stock and preferred stock (collectively, the "Equity Commitment Parties"), the subscribers to the 2021 Rights Offering, and the Backstop Parties purchased an aggregate of (i) $4.7 billion of reorganized Hertz Global common stock and (ii) $1.5 billion (less a 2% upfront discount and stock issuance fees) of reorganized Hertz Global preferred stock as described below. The excess par value for the common stock shares issued by reorganized Hertz Global was recorded to additional paid-in capital in the accompanying consolidated balance sheet of Hertz Global. As of December 31, 2021, all 1,500,000 shares of preferred shares have been repurchased and retired by reorganized Hertz Global as described in the Tender Offer below. Common Stock Under reorganized Hertz Global's revised articles of incorporation, 1,000,000,000 shares of reorganized Hertz Global common stock, par value $0.01 per share, have been authorized for issuance. Each share represents one vote on matters presented to the voting stockholders of reorganized Hertz Global. The consideration received by reorganized Hertz Global upon the issuance of common stock that exceeded the par value was recorded in additional paid-in capital in the accompanying consolidated balance sheet of Hertz Global as of December 31, 2021. The reorganized Hertz Global common stock is not convertible and does not accrue dividends. Dividends, if any, are paid only upon a valid declaration by the Board of reorganized Hertz Global, and such declarations are subject to customary legal and regulatory restrictions, restrictions related to the Series A Preferred Stock, and applicable debt covenants. 2021 Rights Offering In accordance with the Plan of Reorganization, approximately 35% of reorganized Hertz Global common stock was offered pursuant to the 2021 Rights Offering for an aggregate purchase price of $1.6 billion of shares of reorganized Hertz Global common stock at a purchase price of $10.00 per share. The 2021 Rights Offering subscription was first made available to eligible existing Hertz Global stockholders ("Eligible Existing Stockholders") on a pro rata basis to their existing common stock interest, and second, if not fully subscribed and funded by Eligible Existing Stockholders, to certain eligible holders of the Company's Senior Notes and lenders under the Alternative Letter of Credit Facility, pursuant to certain subscription procedures. The final expiration date for the 2021 Rights Offering occurred on June 15, 2021. Hertz Global closed the offering upon emergence from the Chapter 11 Cases on the Effective Date with Eligible Existing Stockholders subscribing to purchase 127,362,114 shares of reorganized Hertz Global common stock for gross proceeds of approximately $1.3 billion. The unsubscribed portion of the 2021 Rights Offering was backstopped by the Backstop Parties resulting in the issuance of 36,137,887 shares of reorganized Hertz Global common stock for gross proceeds of $361 million. The Backstop Parties were compensated a backstop fee of $164 million in reorganized Hertz Global common stock valued at $10.00 per share which is included in the 2021 Rights Offering in the accompanying Consolidated Statements of Changes in Mezzanine Equity and Stockholders' Equity. During the third quarter of 2021, reorganized Hertz Global issued additional shares pursuant to the rounding provisions of the 2021 Rights Offering for cash proceeds of approximately $4 million at a purchase price of $10.00 per share. Public Warrants On the Effective Date, in accordance with the Plan of Reorganization, reorganized Hertz Global issued 89,049,029 Public Warrants. See Note 18 , " Public Warrants - Hertz Global," for attributes of the Public Warrants, which are classified at fair value as a liability for financial reporting purposes under U.S. GAAP. Mezzanine Equity - Preferred Stock In accordance with the revised articles of incorporation of reorganized Hertz Global, 100,000,000 shares of preferred stock, par value $0.01 per share, have been authorized for issuance. Mezzanine Equity – Series A Preferred Stock In connection with the Plan of Reorganization, reorganized Hertz Global issued 1,500,000 shares of preferred stock on the Effective Date, with an initial stated value of $1,000 per share, to Apollo, on behalf of one or more investment funds, separate accounts, and other entities owned, controlled, managed, and/or advised by Apollo or its affiliates, for $1.5 billion, less a 2% upfront discount and stock issuance fees. Shares of the Series A Preferred Stock accrued dividends payable in cash semi-annually in arrears, at a rate of 9% per annum prior to June 30, 2023 and generally increasing thereafter. The first cash dividend payment was payable on the six-month anniversary of the Effective Date. As no one person or entity controls the voting stock of reorganized Hertz Global, a potential change-in-control action could be outside the Company's control and result in a non-compliance event, which could then result in a mandatory redemption of all outstanding shares of Series A Preferred Stock. Accordingly, the Series A Preferred Stock was classified as mezzanine equity upon issuance and recorded at its redemption amount. Pursuant to the certificate of designations for the Series A Preferred Stock, Hertz Global could redeem the Series A Preferred Stock in whole or in part at any time and from time to time, in cash, at a redemption price equal to the then-current accrued stated value of the Series A Preferred Stock being redeemed, subject to a multiple of invested capital floor price equal to a specified multiple 1.30 times the $1,000 per share liquidation preference. Tender Offer for Repurchase of Series A Preferred Stock On November 23, 2021, Hertz Global commenced the Tender Offer to repurchase all 1,500,000 outstanding shares of its Series A Preferred Stock at a per-share price of $1,250. The Tender Offer expired on December 21, 2021 and all shares of the Series A Preferred Stock were repurchased at a price of $1,250 per share for aggregate payments by Hertz Global of $1.9 billion. Hertz Global funded the share repurchases in the Tender Offer with available cash, including proceeds from the offering of the Senior Notes Due 2026 and Senior Notes Due 2029 which were contributed to Hertz Global through a dividend distribution from Hertz. The repurchased shares of Series A Preferred Stock were simultaneously retired. Concurrent with the Tender Offer, Hertz Global solicited consents from a majority of the holders of the Series A Preferred Stock to amend the certificates of designation of the Series A Preferred Shares in order to eliminate the requirement that, without the affirmative vote or consent of holders of a majority of the Series A Preferred Shares outstanding, Hertz Global could not make certain restricted payments (as defined in the certificate of designations) and certain of Hertz Global's unrestricted subsidiaries could not make certain payments in respect of junior stock (as defined in the certificate of designations). Based on the final results of the Tender Offer, the requisite consent of at least a majority of the outstanding Series A Preferred Shares required to approve the proposed amendment was obtained, although it was not necessary to implement the amendment in light of the fact that all Series A Preferred Shares were tendered in the Tender Offer. The difference between the carrying value of the Series A Preferred Stock at expiration of the Tender Offer and the redemption value paid by Hertz Global, including approximately $7 million in certain fees, of $450 million is recorded to Hertz Global's additional paid in capital as of December 31, 2021, and accordingly, is subtracted from net income available to common stockholders of Hertz Global for purposes of calculating basic and diluted earnings per share for the year ended December 31, 2021. In connection with the Tender Offer, any unpaid dividends that the Preferred Stockholders were entitled to pursuant to the original Preferred Stock terms were forfeited upon acceptance of the Tender Offer. Registration Status of Stock Issued on the Effective Date and Nasdaq Listing With the exception of the shares of reorganized Hertz Global's common stock issued to the Backstop Parties, the direct investment commitment under the EPCA and the 2021 Rights Offering, the common stock and the Public Warrants issued by the reorganized Hertz Global pursuant to the Plan of Reorganization on the Effective Date were issued under an exemption from the registration requirements of the Securities Act under the Bankruptcy Code. Shares of reorganized Hertz Global common stock issued to the Backstop Parties, the direct investment commitment under the EPCA, the 2021 Rights Offering and the Series A Preferred Stock were issued under Section 4(a)(2) of the Securities Act. On November 8, 2021, reorganized Hertz Global successfully completed its Nasdaq listing, in which shares of its new common stock were registered with the SEC for a public offering by certain selling stockholders. On November 9, 2021, reorganized Hertz Global's common stock and Public Warrants began trading on Nasdaq under the trading symbols "HTZ" and "HTZWW," respectively. In conjunction with the registration of Hertz Global's common stock in the Nasdaq listing, certain selling stockholders offered and sold 44,520,000 shares of Hertz Global's common stock to the public. Of these shares, Hertz Global repurchased from the underwriters 10,344,828 shares for an aggregate purchase price of $300 million which is included in treasury stock in the accompanying Hertz Global consolidated balance sheet as of December 31, 2021. Share Repurchase Program for Common Stock On November 29, 2021, Hertz Global's Board approved a share repurchase program that authorizes the repurchase of up to $2.0 billion worth of shares of Hertz Global's outstanding common stock. Any repurchases will be made at the discretion of Hertz Global's management through a variety of methods, such as open-market transactions (including pre-set trading plans pursuant to Rule 10b5-1 of the Exchange Act), privately negotiated transactions, accelerated share repurchases, and other transactions in accordance with applicable securities laws. The share repurchase authorization has no initial time limit, does not obligate Hertz Global to acquire any particular amount of common stock, and can be discontinued at any time. There can be no assurance as to the timing or number of shares of any repurchases. Between the inception of the share repurchase program and December 31, 2021, a total of 17,106,026 shares of Hertz Global's common stock were repurchased by Hertz Global at an average share price of $23.83, resulting in an aggregate purchase price of $408 million. This amount was included in treasury stock in the accompanying Hertz Global consolidated balance sheet as of December 31, 2021. Between January 1, 2022 and February 17, 2022, a total of 20,589,620 shares of Hertz Global's common stock were repurchased at an average share price of $20.95 resulting in an aggregate purchase price of $431 million. Stockholders' Equity Prior to Plan of Reorganization Equity of Hertz Global Holdings, Inc. As of December 31, 2020, there were 40 million shares of Hertz Holdings preferred stock authorized, par value $0.01 per share, 400 million shares of Hertz Holdings common stock authorized, par value $0.01 per share, and 2 million shares of treasury stock. In accordance with the Plan of Reorganization, all pre-reorganization equity interests were cancelled as of the Effective Date. 2019 Rights Offering In June 2019, Hertz Global filed a prospectus supplement to its Registration Statement on Form S-3 declared effective by the SEC on June 12, 2019 for a rights offering to raise gross proceeds of approximately $750 million and providing for the issuance of up to an aggregate of 57,915,055 new shares of Hertz Global common stock (the "2019 Rights Offering"). Upon closing in July 2019, the 2019 Rights Offering was fully subscribed resulting in Hertz Global selling 57,915,055 shares of its common stock for gross proceeds of $750 million. Open Market Sale Agreement In June 2020, subsequent to approval from the Bankruptcy Court and pursuant to a prospectus supplement to the Registration Statement, Hertz Global entered into an open market sale agreement under which it could offer and sell, from time to time, shares of its common stock, par value $0.01 per share, having an aggregate offering price of up to $500 million ("ATM Program"). Prior to its suspension on June 15, 2020 and ultimate termination on June 18, 2020, Hertz Global issued 13,912,368 shares under the ATM Program for net proceeds of approximately $28 million, which is included in non-vehicle restricted cash in the accompanying consolidated balance sheet as of December 31, 2020. On the Effective Date, in accordance with the Plan of Reorganization, all shares that had been issued under the ATM Program were cancelled. Additionally, on the Effective Date, Hertz Global contributed the $28 million of net proceeds to Hertz which was recorded in additional paid-in capital in the accompanying consolidated balance sheet of Hertz as of December 31, 2021. Warrant, subject to certain conditions. The Public Warrants allow the holders to purchase up to 18% of the aggregate number of reorganized Hertz Global common interests issued and outstanding as of the Effective Date. Each Public Warrant will entitle the holders to receive one share of reorganized Hertz Global common stock. The Public Warrants have a 30-year term and are exercisable from the date of issuance until June 30, 2051, at which time any unexercised Public Warrants will expire, and the rights of the holders to purchase reorganized Hertz Global common stock will terminate. The exercise price of the Public Warrants is subject to adjustment from time to time upon any payment of cash dividends relating to reorganized Hertz Global's common stock and the occurrence of certain dilutive events as described in the Public Warrant Agreement. As of December 31, 2021, the exercise price remains $13.80. Between the Effective Date and December 31, 2021, 6,040,280 Public Warrants were exercised, of which 428,102 were cashless exercises and 5,612,178 were exercised for $13.80 per share. The Public Warrants are freely transferable, subject only to applicable securities laws and the restrictions on transfers and sales of Public Warrants and reorganized Hertz Global's common stock. On November 9, 2021, the Public Warrants began trading on Nasdaq under the symbol HTZWW. The Public Warrants previously traded on the over-the-counter market. The Company accounts for the Public Warrants in accordance with the provisions of Topic 480, under which the Public Warrants meet the definition of a freestanding financial instrument. Although these are publicly traded warrants, they are classified as liabilities due to certain settlement provisions that are only applicable in the event of change of control (as defined by the Public Warrant Agreement). The Public Warrants are recorded at fair value in the accompanying consolidated balance sheet as of December 31, 2021. See Note 12, "Fair Value Measurements." |
Earnings (Loss) Per Common Shar
Earnings (Loss) Per Common Share – Hertz Global | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Common Share – Hertz Global | Earnings (Loss) Per Common Share – Hertz Global Basic earnings (loss) per common share has been computed based upon the weighted-average number of common shares outstanding. Diluted earnings (loss) per common share has been computed based upon the weighted-average number of common shares outstanding plus the effect of all potentially dilutive common stock equivalents, including Public Warrants, except when the effect would be anti-dilutive. For the year ended December 31, 2021, the diluted weighted-average shares outstanding included the dilutive impact of Public Warrants where the Company assumed share settlement of the Public Warrants as of the beginning of the reporting period. Additionally, the Company removes the change in fair value of Public Warrants when computing diluted earnings (loss) per common share, when the impact of Public Warrants is dilutive. As disclosed in Note 16, "Equity and Mezzanine Equity – Hertz Global," the Tender Offer to repurchase all outstanding shares of the Series A Preferred Stock expired in December 2021 with all shares of the Series A Preferred Stock repurchased by Hertz Global. The difference between the carrying value of the Series A Preferred Stock at expiration of the Tender Offer and the redemption value paid by Hertz Global was deemed a dividend to the holders of Hertz Global's Series A Preferred Stock, along with certain fees for purposes of computing basic and diluted earnings per share below. As dividends represent earnings that were not available to the holders of Hertz Global's common stock when computing basic and diluted earnings (loss) per common share, they are reflected as an adjustment to net income (loss) available to common stockholders when computing basic and diluted earnings (loss) per common share for Hertz Global. The following table sets forth the computation of basic and diluted earnings (loss) per common share: Years Ended December 31, (In millions, except per share data) 2021 2020 2019 Numerator: Net income (loss) attributable to Hertz Global $ 366 $ (1,714) $ (58) Series A Preferred Stock deemed dividends (1) (450) — — Net income (loss) available to Hertz Global common stockholders $ (84) $ (1,714) $ (58) Denominator: Basic weighted-average common shares outstanding 315 150 84 2019 Rights Offering adjustment (2) — — 33 Diluted weighted-average common shares outstanding 315 150 117 Antidilutive Public Warrants 14 — — Antidilutive stock options, RSUs, PSUs and PSAs 1 2 2 Total antidilutive 15 2 2 Earnings (loss) per common share: Basic $ (0.27) $ (11.44) $ (0.49) Diluted $ (0.27) $ (11.44) $ (0.49) (1) Reflects the difference between the carrying value of the Series A Preferred Stock at expiration of the Tender Offer and the redemption value paid by Hertz Global, including approximately $7 million in certain fees. (2) Reflects the impact of the 2019 Rights Offering subscription period and the weighted-average impact of the issuance of 57,915,055 shares from the 2019 Rights Offering on July 18, 2019. Under the Plan of Reorganization approved by the Bankruptcy Court, the 2021 Rights Offering subscription was made available to Eligible Existing Stockholders on a pro rata basis to their existing common stock interests; therefore earnings (loss) per common share have not been retrospectively adjusted for reporting periods prior to the Effective Date for the 2021 Rights Offering. |
Public Warrants _ Hertz Global
Public Warrants – Hertz Global | 12 Months Ended |
Dec. 31, 2021 | |
Warrants and Rights Note Disclosure [Abstract] | |
Public Warrants – Hertz Global | Equity and Mezzanine Equity – Hertz Global Emergence from Bankruptcy In connection with the Chapter 11 Emergence, all of Hertz Global's existing authorized, issued, and outstanding common and preferred stock were cancelled. As of the Effective Date, there are 1,000,000,000 shares of reorganized Hertz Global common stock and 100,000,000 shares of reorganized Hertz Global preferred stock authorized for issuance. On the Effective Date, in accordance with the Plan of Reorganization, reorganized Hertz Global issued common stock as follows: • 277,119,438 shares purchased by the Plan Sponsors; • 14,133,024 shares issued, pro rata, to existing stockholders; • 127,362,114 shares issued pursuant to the 2021 Rights Offering; and • 52,487,886 shares distributed to the Backstop Parties. As of the Effective Date, 471,102,462 shares of reorganized Hertz Global common stock and 1,500,000 shares of reorganized Hertz Global preferred stock were issued and outstanding. The parties, including the Plan Sponsors who purchased reorganized Hertz Global common stock and preferred stock (collectively, the "Equity Commitment Parties"), the subscribers to the 2021 Rights Offering, and the Backstop Parties purchased an aggregate of (i) $4.7 billion of reorganized Hertz Global common stock and (ii) $1.5 billion (less a 2% upfront discount and stock issuance fees) of reorganized Hertz Global preferred stock as described below. The excess par value for the common stock shares issued by reorganized Hertz Global was recorded to additional paid-in capital in the accompanying consolidated balance sheet of Hertz Global. As of December 31, 2021, all 1,500,000 shares of preferred shares have been repurchased and retired by reorganized Hertz Global as described in the Tender Offer below. Common Stock Under reorganized Hertz Global's revised articles of incorporation, 1,000,000,000 shares of reorganized Hertz Global common stock, par value $0.01 per share, have been authorized for issuance. Each share represents one vote on matters presented to the voting stockholders of reorganized Hertz Global. The consideration received by reorganized Hertz Global upon the issuance of common stock that exceeded the par value was recorded in additional paid-in capital in the accompanying consolidated balance sheet of Hertz Global as of December 31, 2021. The reorganized Hertz Global common stock is not convertible and does not accrue dividends. Dividends, if any, are paid only upon a valid declaration by the Board of reorganized Hertz Global, and such declarations are subject to customary legal and regulatory restrictions, restrictions related to the Series A Preferred Stock, and applicable debt covenants. 2021 Rights Offering In accordance with the Plan of Reorganization, approximately 35% of reorganized Hertz Global common stock was offered pursuant to the 2021 Rights Offering for an aggregate purchase price of $1.6 billion of shares of reorganized Hertz Global common stock at a purchase price of $10.00 per share. The 2021 Rights Offering subscription was first made available to eligible existing Hertz Global stockholders ("Eligible Existing Stockholders") on a pro rata basis to their existing common stock interest, and second, if not fully subscribed and funded by Eligible Existing Stockholders, to certain eligible holders of the Company's Senior Notes and lenders under the Alternative Letter of Credit Facility, pursuant to certain subscription procedures. The final expiration date for the 2021 Rights Offering occurred on June 15, 2021. Hertz Global closed the offering upon emergence from the Chapter 11 Cases on the Effective Date with Eligible Existing Stockholders subscribing to purchase 127,362,114 shares of reorganized Hertz Global common stock for gross proceeds of approximately $1.3 billion. The unsubscribed portion of the 2021 Rights Offering was backstopped by the Backstop Parties resulting in the issuance of 36,137,887 shares of reorganized Hertz Global common stock for gross proceeds of $361 million. The Backstop Parties were compensated a backstop fee of $164 million in reorganized Hertz Global common stock valued at $10.00 per share which is included in the 2021 Rights Offering in the accompanying Consolidated Statements of Changes in Mezzanine Equity and Stockholders' Equity. During the third quarter of 2021, reorganized Hertz Global issued additional shares pursuant to the rounding provisions of the 2021 Rights Offering for cash proceeds of approximately $4 million at a purchase price of $10.00 per share. Public Warrants On the Effective Date, in accordance with the Plan of Reorganization, reorganized Hertz Global issued 89,049,029 Public Warrants. See Note 18 , " Public Warrants - Hertz Global," for attributes of the Public Warrants, which are classified at fair value as a liability for financial reporting purposes under U.S. GAAP. Mezzanine Equity - Preferred Stock In accordance with the revised articles of incorporation of reorganized Hertz Global, 100,000,000 shares of preferred stock, par value $0.01 per share, have been authorized for issuance. Mezzanine Equity – Series A Preferred Stock In connection with the Plan of Reorganization, reorganized Hertz Global issued 1,500,000 shares of preferred stock on the Effective Date, with an initial stated value of $1,000 per share, to Apollo, on behalf of one or more investment funds, separate accounts, and other entities owned, controlled, managed, and/or advised by Apollo or its affiliates, for $1.5 billion, less a 2% upfront discount and stock issuance fees. Shares of the Series A Preferred Stock accrued dividends payable in cash semi-annually in arrears, at a rate of 9% per annum prior to June 30, 2023 and generally increasing thereafter. The first cash dividend payment was payable on the six-month anniversary of the Effective Date. As no one person or entity controls the voting stock of reorganized Hertz Global, a potential change-in-control action could be outside the Company's control and result in a non-compliance event, which could then result in a mandatory redemption of all outstanding shares of Series A Preferred Stock. Accordingly, the Series A Preferred Stock was classified as mezzanine equity upon issuance and recorded at its redemption amount. Pursuant to the certificate of designations for the Series A Preferred Stock, Hertz Global could redeem the Series A Preferred Stock in whole or in part at any time and from time to time, in cash, at a redemption price equal to the then-current accrued stated value of the Series A Preferred Stock being redeemed, subject to a multiple of invested capital floor price equal to a specified multiple 1.30 times the $1,000 per share liquidation preference. Tender Offer for Repurchase of Series A Preferred Stock On November 23, 2021, Hertz Global commenced the Tender Offer to repurchase all 1,500,000 outstanding shares of its Series A Preferred Stock at a per-share price of $1,250. The Tender Offer expired on December 21, 2021 and all shares of the Series A Preferred Stock were repurchased at a price of $1,250 per share for aggregate payments by Hertz Global of $1.9 billion. Hertz Global funded the share repurchases in the Tender Offer with available cash, including proceeds from the offering of the Senior Notes Due 2026 and Senior Notes Due 2029 which were contributed to Hertz Global through a dividend distribution from Hertz. The repurchased shares of Series A Preferred Stock were simultaneously retired. Concurrent with the Tender Offer, Hertz Global solicited consents from a majority of the holders of the Series A Preferred Stock to amend the certificates of designation of the Series A Preferred Shares in order to eliminate the requirement that, without the affirmative vote or consent of holders of a majority of the Series A Preferred Shares outstanding, Hertz Global could not make certain restricted payments (as defined in the certificate of designations) and certain of Hertz Global's unrestricted subsidiaries could not make certain payments in respect of junior stock (as defined in the certificate of designations). Based on the final results of the Tender Offer, the requisite consent of at least a majority of the outstanding Series A Preferred Shares required to approve the proposed amendment was obtained, although it was not necessary to implement the amendment in light of the fact that all Series A Preferred Shares were tendered in the Tender Offer. The difference between the carrying value of the Series A Preferred Stock at expiration of the Tender Offer and the redemption value paid by Hertz Global, including approximately $7 million in certain fees, of $450 million is recorded to Hertz Global's additional paid in capital as of December 31, 2021, and accordingly, is subtracted from net income available to common stockholders of Hertz Global for purposes of calculating basic and diluted earnings per share for the year ended December 31, 2021. In connection with the Tender Offer, any unpaid dividends that the Preferred Stockholders were entitled to pursuant to the original Preferred Stock terms were forfeited upon acceptance of the Tender Offer. Registration Status of Stock Issued on the Effective Date and Nasdaq Listing With the exception of the shares of reorganized Hertz Global's common stock issued to the Backstop Parties, the direct investment commitment under the EPCA and the 2021 Rights Offering, the common stock and the Public Warrants issued by the reorganized Hertz Global pursuant to the Plan of Reorganization on the Effective Date were issued under an exemption from the registration requirements of the Securities Act under the Bankruptcy Code. Shares of reorganized Hertz Global common stock issued to the Backstop Parties, the direct investment commitment under the EPCA, the 2021 Rights Offering and the Series A Preferred Stock were issued under Section 4(a)(2) of the Securities Act. On November 8, 2021, reorganized Hertz Global successfully completed its Nasdaq listing, in which shares of its new common stock were registered with the SEC for a public offering by certain selling stockholders. On November 9, 2021, reorganized Hertz Global's common stock and Public Warrants began trading on Nasdaq under the trading symbols "HTZ" and "HTZWW," respectively. In conjunction with the registration of Hertz Global's common stock in the Nasdaq listing, certain selling stockholders offered and sold 44,520,000 shares of Hertz Global's common stock to the public. Of these shares, Hertz Global repurchased from the underwriters 10,344,828 shares for an aggregate purchase price of $300 million which is included in treasury stock in the accompanying Hertz Global consolidated balance sheet as of December 31, 2021. Share Repurchase Program for Common Stock On November 29, 2021, Hertz Global's Board approved a share repurchase program that authorizes the repurchase of up to $2.0 billion worth of shares of Hertz Global's outstanding common stock. Any repurchases will be made at the discretion of Hertz Global's management through a variety of methods, such as open-market transactions (including pre-set trading plans pursuant to Rule 10b5-1 of the Exchange Act), privately negotiated transactions, accelerated share repurchases, and other transactions in accordance with applicable securities laws. The share repurchase authorization has no initial time limit, does not obligate Hertz Global to acquire any particular amount of common stock, and can be discontinued at any time. There can be no assurance as to the timing or number of shares of any repurchases. Between the inception of the share repurchase program and December 31, 2021, a total of 17,106,026 shares of Hertz Global's common stock were repurchased by Hertz Global at an average share price of $23.83, resulting in an aggregate purchase price of $408 million. This amount was included in treasury stock in the accompanying Hertz Global consolidated balance sheet as of December 31, 2021. Between January 1, 2022 and February 17, 2022, a total of 20,589,620 shares of Hertz Global's common stock were repurchased at an average share price of $20.95 resulting in an aggregate purchase price of $431 million. Stockholders' Equity Prior to Plan of Reorganization Equity of Hertz Global Holdings, Inc. As of December 31, 2020, there were 40 million shares of Hertz Holdings preferred stock authorized, par value $0.01 per share, 400 million shares of Hertz Holdings common stock authorized, par value $0.01 per share, and 2 million shares of treasury stock. In accordance with the Plan of Reorganization, all pre-reorganization equity interests were cancelled as of the Effective Date. 2019 Rights Offering In June 2019, Hertz Global filed a prospectus supplement to its Registration Statement on Form S-3 declared effective by the SEC on June 12, 2019 for a rights offering to raise gross proceeds of approximately $750 million and providing for the issuance of up to an aggregate of 57,915,055 new shares of Hertz Global common stock (the "2019 Rights Offering"). Upon closing in July 2019, the 2019 Rights Offering was fully subscribed resulting in Hertz Global selling 57,915,055 shares of its common stock for gross proceeds of $750 million. Open Market Sale Agreement In June 2020, subsequent to approval from the Bankruptcy Court and pursuant to a prospectus supplement to the Registration Statement, Hertz Global entered into an open market sale agreement under which it could offer and sell, from time to time, shares of its common stock, par value $0.01 per share, having an aggregate offering price of up to $500 million ("ATM Program"). Prior to its suspension on June 15, 2020 and ultimate termination on June 18, 2020, Hertz Global issued 13,912,368 shares under the ATM Program for net proceeds of approximately $28 million, which is included in non-vehicle restricted cash in the accompanying consolidated balance sheet as of December 31, 2020. On the Effective Date, in accordance with the Plan of Reorganization, all shares that had been issued under the ATM Program were cancelled. Additionally, on the Effective Date, Hertz Global contributed the $28 million of net proceeds to Hertz which was recorded in additional paid-in capital in the accompanying consolidated balance sheet of Hertz as of December 31, 2021. Warrant, subject to certain conditions. The Public Warrants allow the holders to purchase up to 18% of the aggregate number of reorganized Hertz Global common interests issued and outstanding as of the Effective Date. Each Public Warrant will entitle the holders to receive one share of reorganized Hertz Global common stock. The Public Warrants have a 30-year term and are exercisable from the date of issuance until June 30, 2051, at which time any unexercised Public Warrants will expire, and the rights of the holders to purchase reorganized Hertz Global common stock will terminate. The exercise price of the Public Warrants is subject to adjustment from time to time upon any payment of cash dividends relating to reorganized Hertz Global's common stock and the occurrence of certain dilutive events as described in the Public Warrant Agreement. As of December 31, 2021, the exercise price remains $13.80. Between the Effective Date and December 31, 2021, 6,040,280 Public Warrants were exercised, of which 428,102 were cashless exercises and 5,612,178 were exercised for $13.80 per share. The Public Warrants are freely transferable, subject only to applicable securities laws and the restrictions on transfers and sales of Public Warrants and reorganized Hertz Global's common stock. On November 9, 2021, the Public Warrants began trading on Nasdaq under the symbol HTZWW. The Public Warrants previously traded on the over-the-counter market. The Company accounts for the Public Warrants in accordance with the provisions of Topic 480, under which the Public Warrants meet the definition of a freestanding financial instrument. Although these are publicly traded warrants, they are classified as liabilities due to certain settlement provisions that are only applicable in the event of change of control (as defined by the Public Warrant Agreement). The Public Warrants are recorded at fair value in the accompanying consolidated balance sheet as of December 31, 2021. See Note 12, "Fair Value Measurements." |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company’s CODM assesses performance and allocates resources based upon the financial information for the Company’s reportable segments. In the second quarter of 2021, in connection with the Chapter 11 Emergence as disclosed in Note 1 , " Background," and changes in how the Company's CODM regularly reviews operating results and allocates resources, the Company revised its reportable segments to include Canada, Latin America and the Caribbean in its Americas RAC reportable segment, which were previously included in its International RAC reportable segment. Accordingly, prior periods have been restated to conform with the revised presentation. The Company has identified two reportable segments, which are consistent with its operating segments and organized based on the products and services provided and the geographic areas in which business is conducted, as follows: • Americas RAC - rental of vehicles (cars, crossovers, vans and light trucks), as well as sales of value-added services, in the U.S., Canada, Latin America and the Caribbean; and • International RAC - rental and leasing of vehicles (cars, vans, crossovers and light trucks), as well as sales of value-added services internationally and consists primarily of the Company's Europe and other international locations. In addition, in the second quarter of 2021, as a result of the Donlen Sale, as disclosed in Note 3, "Divestitures," the All Other Operations reportable segment, which consisted primarily of the Company's former Donlen business, was no longer deemed a reportable segment. In addition to its reportable segments and other operating activities, the Company has corporate operations ("Corporate") which includes general corporate assets and expenses and certain interest expense (including net interest on non-vehicle debt). Corporate includes other items necessary to reconcile the reportable segments to the Company's total amounts. The following tables provide significant statement of operations and balance sheet information by reportable segment for each of Hertz Global and Hertz, as well as Adjusted EBITDA, the measure used to determine segment profitability. Years Ended December 31, (In millions) 2021 2020 2019 Revenues Americas RAC $ 6,215 $ 3,756 $ 7,208 International RAC 985 872 1,899 Total reportable segments 7,200 4,628 9,107 All other operations (1) 136 630 672 Total Hertz Global and Hertz $ 7,336 $ 5,258 $ 9,779 Depreciation of revenue earning vehicles and lease charges Americas RAC $ 343 $ 1,352 $ 1,706 International RAC 154 243 388 Total reportable segments 497 1,595 2,094 All other operations (1)(2) — 435 469 Total Hertz Global and Hertz $ 497 $ 2,030 $ 2,563 Depreciation and amortization, non-vehicle assets Americas RAC $ 166 $ 182 $ 159 International RAC 16 19 20 Total reportable segments 182 201 179 All other operations (1) 2 10 10 Corporate 12 14 14 Total Hertz Global and Hertz $ 196 $ 225 $ 203 Interest expense, net Americas RAC $ 198 $ 259 $ 166 International RAC 62 80 84 Total reportable segments 260 339 250 All other operations (1) 13 40 31 Corporate 196 229 524 Total Hertz Global 469 608 805 Hertz interest income from loan to Hertz Global — (2) (7) Total - Hertz $ 469 $ 606 $ 798 Adjusted EBITDA Americas RAC $ 2,173 $ (810) $ 512 International RAC 90 (229) 115 Total reportable segments 2,263 (1,039) 627 All other operations (1) 13 93 100 Corporate (146) (49) (78) Total Hertz Global and Hertz $ 2,130 $ (995) $ 649 As of December 31, (In millions) 2021 2020 Revenue earning vehicles, net Americas RAC $ 7,897 $ 5,120 International RAC 1,329 942 Total reportable segments 9,226 6,062 All other operations (1)(3) — 1,432 Total Hertz Global and Hertz $ 9,226 $ 7,494 Property and equipment, net Americas RAC $ 449 $ 490 International RAC 67 78 Total reportable segments 516 568 All other operations (1)(4) — 6 Corporate 92 98 Total Hertz Global and Hertz $ 608 $ 672 Total assets Americas RAC $ 14,352 $ 11,337 International RAC 2,978 2,661 Total reportable segments 17,330 13,998 All other operations (1)(5) — 1,818 Corporate 2,453 1,092 Total Hertz Global (6) 19,783 16,908 Corporate - Hertz (7) (3) (28) Total Hertz (6) $ 19,780 $ 16,880 (1) Substantially comprised of the Company's Donlen business, which was sold on March 30, 2021. (2) Depreciation for the Donlen business was suspended while classified as held for sale. See Note 3, "Divestitures." (3) Includes $1.4 billion of revenue earning vehicles, net classified as held for sale as of December 31, 2020 as disclosed in Note 3, "Divestitures." (4) Includes $6 million of property and equipment, net classified as held for sale as of December 31, 2020 as disclosed in Note 3, "Divestitures." (5) Includes $1.8 billion of assets classified as held for sale as of December 31, 2020 as disclosed in Note 3, "Divestitures." (6) The consolidated total assets of Hertz Global and Hertz as of December 31, 2021 and 2020 included total assets of VIEs of $734 million and $511 million, respectively, which can only be used to settle obligations of the VIEs. See "Pledges Related to Vehicle Financing" in Note 6, "Debt," and "Termination of 767 Auto Leasing Agreement" in Note 3, "Divestitures," for further information. (7) Excludes net proceeds from the ATM Program of $28 million as of December 31, 2020 as disclosed in Note 16, "Equity and Mezzanine Equity – Hertz Global." Years Ended December 31, (In millions) 2021 2020 2019 Revenue earning vehicles and non-vehicle capital assets Americas RAC: Expenditures $ (5,935) $ (4,059) $ (9,790) Proceeds from disposals 2,137 7,965 6,643 Net expenditures - Hertz Global and Hertz $ (3,798) $ 3,906 $ (3,147) International RAC: Expenditures $ (1,123) $ (930) $ (2,995) Proceeds from disposals 626 1,855 2,517 Net expenditures - Hertz Global and Hertz $ (497) $ 925 $ (478) All other operations: Expenditures $ (155) $ (615) $ (1,043) Proceeds from disposals 70 335 352 Net expenditures - Hertz Global and Hertz $ (85) $ (280) $ (691) Corporate: Expenditures $ (12) $ (36) $ (110) Proceeds from disposals 1 3 1 Net expenditures - Hertz Global and Hertz $ (11) $ (33) $ (109) The Company operates in the U.S. and in international countries. International operations are substantially in Europe. The operations within major geographic areas for each of Hertz Global and Hertz are summarized below: Years Ended December 31, (In millions) 2021 2020 2019 Revenues U.S. $ 6,186 $ 4,271 $ 7,596 International 1,150 987 2,183 Total Hertz Global and Hertz $ 7,336 $ 5,258 $ 9,779 As of December 31, (In millions) 2021 2020 Revenue earning vehicles, net U.S. $ 7,639 $ 4,974 International 1,587 1,088 Total Hertz Global and Hertz $ 9,226 $ 6,062 Property and equipment, net U.S. $ 527 $ 570 International 81 96 Total Hertz Global and Hertz $ 608 $ 666 As of December 31, (In millions) 2021 2020 Total assets U.S. (1) $ 16,174 $ 13,732 International (2) 3,609 3,176 Total Hertz Global 19,783 16,908 U.S. - Hertz (3) (28) Total Hertz $ 19,780 $ 16,880 (1) Includes $1.8 billion of assets classified as held for sale as of December 31, 2020 as disclosed in Note 3, "Divestitures." (2) Includes $48 million of assets classified as held for sale as of December 31, 2020 as disclosed in Note 3, "Divestitures." Reconciliations of Adjusted EBITDA by reportable segment to consolidated amounts are summarized below: Hertz Global Years Ended December 31, (In millions) 2021 2020 2019 Adjusted EBITDA: Americas RAC $ 2,173 $ (810) $ 512 International RAC 90 (229) 115 Total reportable segments 2,263 (1,039) 627 All other operations (1) 13 93 100 Corporate (2) (146) (49) (78) Total Hertz Global 2,130 (995) 649 Adjustments: Non-vehicle depreciation and amortization (196) (225) (203) Non-vehicle debt interest, net (3) (185) (153) (311) Vehicle debt-related charges (4) (72) (55) (38) Restructuring and restructuring related charges (5) (76) (64) (14) Technology-related intangible and other asset impairments (6) — (213) — Information technology and finance transformation costs (7) (12) (42) (114) Reorganization items, net (8) (677) (175) — Pre-reorganization charges and non-debtor financing charges (9) (42) (109) — Gain from the Donlen Sale (10) 400 — — Change in fair value of Public Warrants (11) (627) — — Other items (12) 40 (21) 44 Income (loss) before income taxes $ 683 $ (2,052) $ 13 Hertz Years Ended December 31, (In millions) 2021 2020 2019 Adjusted EBITDA: Americas RAC $ 2,173 $ (810) $ 512 International RAC 90 (229) 115 Total reportable segments 2,263 (1,039) 627 All other operations (1) 13 93 100 Corporate (2) (146) (49) (78) Total Hertz 2,130 (995) 649 Adjustments: Non-vehicle depreciation and amortization (196) (225) (203) Non-vehicle debt interest, net (3) (185) (151) (304) Vehicle debt-related charges (4) (72) (55) (38) Restructuring and restructuring related charges (5) (76) (64) (14) Technology-related intangible and other asset impairments (6) — (213) — Write-off of intercompany loan (13) — (133) — Information technology and finance transformation costs (7) (12) (42) (114) Reorganization items, net (8) (513) (175) — Pre-reorganization charges and non-debtor financing charges (9) (42) (109) — Gain from the Donlen Sale (10) 400 — — Other items (12) 40 (21) 44 Income (loss) before income taxes $ 1,474 $ (2,183) $ 20 (1) Substantially comprised of the Company's Donlen business, which was sold on March 30, 2021 as disclosed in Note 3, "Divestitures." (2) Represents other reconciling items primarily consisting of general corporate expenses as well as other business activities. (3) For 2021, includes $8 million of loss on extinguishment of debt associated with the payoff and termination of the HIL Credit Agreement recorded in the second quarter. See Note 6, "Debt," for further information. (4) Represents vehicle debt-related charges relating to the amortization of deferred financing costs and debt discounts and premiums. (5) Represents charges incurred under restructuring actions as defined in U.S. GAAP. See Note 10, "Restructuring," for further information. Also includes restructuring related charges such as incremental costs incurred directly supporting business transformation initiatives. (6) For 2020, represents a $193 million impairment of technology-related intangible assets and capitalized cloud computing implementations costs and a $20 million impairment of the Hertz tradename, as disclosed in Note 5, "Goodwill and Intangible Assets, Net." (7) 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. (8) Represents charges incurred associated with the filing of and the emergence from the Chapter 11 Cases, as disclosed in Note 21, "Reorganization Items, Net." (9) Represents charges incurred prior to the filing of the Chapter 11 Cases, as disclosed in Note 1, "Background," which were comprised of preparation charges for the reorganization, such as professional fees. Also, includes certain non-debtor financing and professional fee charges. (10) Represents the net gain from the sale of the Company's Donlen business on March 30, 2021 as disclosed in Note 3, "Divestitures." (11) Represents the change in fair value during the reporting period for the Company's outstanding Public Warrants. (12) Represents miscellaneous items, including non-cash stock-based compensation charges, and amounts attributable to noncontrolling interests. For 2021, includes $100 million associated with the suspension of depreciation during the first quarter for the Donlen business while classified as held for sale, partially offset by $17 million for certain professional fees, $14 million of charges related to the settlement of bankruptcy claims, charges for a multiemployer pension plan withdrawal liability and letter of credit fees. For 2020, also includes $16 million associated with the Donlen Asset Sale, partially offset by $18 million for losses associated with certain vehicle damages. For 2019, also includes a $30 million gain on marketable securities and a $39 million gain on the sale of non-vehicle capital assets. (13) For 2020, represents the write-off of the 2019 Master Loan between Hertz and Hertz Holdings, as disclosed in Note 15, "Related Party Transactions." |
Liabilities Subject to Compromi
Liabilities Subject to Compromise | 12 Months Ended |
Dec. 31, 2021 | |
Reorganizations [Abstract] | |
Liabilities Subject to Compromise | Liabilities Subject to Compromise The accompanying consolidated balance sheet as of December 31, 2020 includes amounts classified as liabilities subject to compromise, which represented Pre-petition liabilities the Company anticipated would be allowed as claims in the Chapter 11 Cases. These amounts represented the Debtors' current estimate of known or potential obligations to be resolved in connection with the Chapter 11 Cases. The following table summarizes liabilities subject to compromise as of December 31, 2020: (In millions) December 31, 2020 Accounts payable $ 267 Accrued liabilities (1) 166 Accrued taxes, net 19 Accrued interest on debt subject to compromise 70 Debt subject to compromise (2) 4,443 Liabilities subject to compromise - Hertz Global 4,965 Due from affiliate - Hertz (3) 65 Liabilities subject to compromise - Hertz $ 5,030 (1) Included $24 million of U.S. pension benefit obligation reported as liabilities subject to compromise as of December 31, 2020. (2) See Note 6, "Debt," for details of Pre-petition, non-vehicle debt reported as liabilities subject to compromise as of December 31, 2020. (3) See Note 15, "Related Party Transactions," for details of a Pre-petition intercompany loan due to an affiliate reported as liabilities subject to compromise as of December 31, 2020. As a result of the Chapter 11 Emergence and implementation of the Plan of Reorganization, the Company reinstated certain liabilities that had been classified as liabilities subject to compromise in the accompanying consolidated balance sheet as of December 31, 2020. The following table represents the reinstatement of liabilities subject to compromise, which include Pre-petition liabilities that were allowed to be or that were estimated to be allowed as claims in the Chapter 11 Cases. (In millions) Effective Date Reinstated on the Effective Date: Accounts payable $ 257 Accrued liabilities 99 Accrued taxes, net 14 Liabilities reinstated - Hertz Global 370 Stockholder's equity - Due to affiliate - Hertz (1) 65 Liabilities reinstated - Hertz $ 435 (1) See Note 15, "Related Party Transactions," for details of a Pre-petition intercompany loan due to an affiliate reported as liabilities subject to compromise as of December 31, 2020 that was settled via a non-cash distribution from Hertz to Hertz Holdings. The following tables summarize reorganization items, net: Hertz Global Years Ended December 31, (In millions) 2021 2020 Professional fees and other bankruptcy related costs $ 257 $ 175 Loss on extinguishment of debt (1) 191 — Backstop fee 164 — Breakup fee (2) 77 — Contract settlements 25 — Cancellation of share-based compensation grants (3) (10) — Net gain on settlement of liabilities subject to compromise (22) — Other, net (5) — Reorganization items, net $ 677 $ 175 Hertz Years Ended December 31, (In millions) 2021 2020 Professional fees and other bankruptcy related costs $ 257 $ 175 Loss on extinguishment of debt (1) 191 — Breakup fee (2) 77 — Contract settlements 25 — Cancellation of share-based compensation grants (3) (10) — Net gain on settlement of liabilities subject to compromise (22) — Other, net (5) — Reorganization items, net $ 513 $ 175 (1) Includes loss on extinguishment of debt resulting from the implementation of the Plan of Reorganization on the Effective Date. Primarily composed of write-offs of unamortized deferred loan origination costs and early termination fees associated with terminated debt agreements. See Note 6, "Debt," for further information. (2) Breakup fee paid to prior plan sponsors Centerbridge Partners, L.P., Warburg Pincus LLC, Dundon Capital Partners, LLC and certain of their respective affiliates and certain holders of the Senior Notes upon Emergence in accordance with an Equity Purchase and Commitment and Agreement entered into on April 3, 2021 which was subsequently terminated. (3) See Note 8, "Stock-Based Compensation," for further details. Cash payments during the years ended December 31, 2021 and 2020 totaled $485 million and $102 million, respectively. As of December 31, 2021, $25 million was recorded in accounts payable in the accompanying consolidated balance sheet as of December 31, 2021. As of December 31, 2020, $46 million and $19 million were recorded in accrued liabilities and accounts payable, respectively, in the accompanying consolidated balance sheet as of December 31, 2020. |
Reorganization Items, Net
Reorganization Items, Net | 12 Months Ended |
Dec. 31, 2021 | |
Reorganizations [Abstract] | |
Reorganization Items, Net | Liabilities Subject to Compromise The accompanying consolidated balance sheet as of December 31, 2020 includes amounts classified as liabilities subject to compromise, which represented Pre-petition liabilities the Company anticipated would be allowed as claims in the Chapter 11 Cases. These amounts represented the Debtors' current estimate of known or potential obligations to be resolved in connection with the Chapter 11 Cases. The following table summarizes liabilities subject to compromise as of December 31, 2020: (In millions) December 31, 2020 Accounts payable $ 267 Accrued liabilities (1) 166 Accrued taxes, net 19 Accrued interest on debt subject to compromise 70 Debt subject to compromise (2) 4,443 Liabilities subject to compromise - Hertz Global 4,965 Due from affiliate - Hertz (3) 65 Liabilities subject to compromise - Hertz $ 5,030 (1) Included $24 million of U.S. pension benefit obligation reported as liabilities subject to compromise as of December 31, 2020. (2) See Note 6, "Debt," for details of Pre-petition, non-vehicle debt reported as liabilities subject to compromise as of December 31, 2020. (3) See Note 15, "Related Party Transactions," for details of a Pre-petition intercompany loan due to an affiliate reported as liabilities subject to compromise as of December 31, 2020. As a result of the Chapter 11 Emergence and implementation of the Plan of Reorganization, the Company reinstated certain liabilities that had been classified as liabilities subject to compromise in the accompanying consolidated balance sheet as of December 31, 2020. The following table represents the reinstatement of liabilities subject to compromise, which include Pre-petition liabilities that were allowed to be or that were estimated to be allowed as claims in the Chapter 11 Cases. (In millions) Effective Date Reinstated on the Effective Date: Accounts payable $ 257 Accrued liabilities 99 Accrued taxes, net 14 Liabilities reinstated - Hertz Global 370 Stockholder's equity - Due to affiliate - Hertz (1) 65 Liabilities reinstated - Hertz $ 435 (1) See Note 15, "Related Party Transactions," for details of a Pre-petition intercompany loan due to an affiliate reported as liabilities subject to compromise as of December 31, 2020 that was settled via a non-cash distribution from Hertz to Hertz Holdings. The following tables summarize reorganization items, net: Hertz Global Years Ended December 31, (In millions) 2021 2020 Professional fees and other bankruptcy related costs $ 257 $ 175 Loss on extinguishment of debt (1) 191 — Backstop fee 164 — Breakup fee (2) 77 — Contract settlements 25 — Cancellation of share-based compensation grants (3) (10) — Net gain on settlement of liabilities subject to compromise (22) — Other, net (5) — Reorganization items, net $ 677 $ 175 Hertz Years Ended December 31, (In millions) 2021 2020 Professional fees and other bankruptcy related costs $ 257 $ 175 Loss on extinguishment of debt (1) 191 — Breakup fee (2) 77 — Contract settlements 25 — Cancellation of share-based compensation grants (3) (10) — Net gain on settlement of liabilities subject to compromise (22) — Other, net (5) — Reorganization items, net $ 513 $ 175 (1) Includes loss on extinguishment of debt resulting from the implementation of the Plan of Reorganization on the Effective Date. Primarily composed of write-offs of unamortized deferred loan origination costs and early termination fees associated with terminated debt agreements. See Note 6, "Debt," for further information. (2) Breakup fee paid to prior plan sponsors Centerbridge Partners, L.P., Warburg Pincus LLC, Dundon Capital Partners, LLC and certain of their respective affiliates and certain holders of the Senior Notes upon Emergence in accordance with an Equity Purchase and Commitment and Agreement entered into on April 3, 2021 which was subsequently terminated. (3) See Note 8, "Stock-Based Compensation," for further details. Cash payments during the years ended December 31, 2021 and 2020 totaled $485 million and $102 million, respectively. As of December 31, 2021, $25 million was recorded in accounts payable in the accompanying consolidated balance sheet as of December 31, 2021. As of December 31, 2020, $46 million and $19 million were recorded in accrued liabilities and accounts payable, respectively, in the accompanying consolidated balance sheet as of December 31, 2020. |
SCHEDULE I CONDENSED FINANCIAL
SCHEDULE I CONDENSED FINANCIAL INFORMATION OF REGISTRANT | 12 Months Ended |
Dec. 31, 2021 | |
Condensed Financial Information Disclosure [Abstract] | |
SCHEDULE I CONDENSED FINANCIAL INFORMATION OF REGISTRANT | PARENT COMPANY BALANCE SHEETS (In millions, except par value) December 31, 2021 2020 ASSETS Cash and cash equivalents $ 1 $ — Restricted cash and restricted cash equivalents — 28 Total cash, cash equivalents, restricted cash and restricted cash equivalents 1 28 Non-vehicle receivables, net of allowance 1 — Prepaid expenses and other assets 1 1 Investments in subsidiaries, net 4,350 — Deferred income taxes, net 2 5 Due from Hertz — 65 Total assets $ 4,355 $ 99 LIABILITIES AND STOCKHOLDERS' EQUITY Accrued liabilities $ 54 $ — Public Warrants 1,324 — Due to Hertz — 1 Investments in subsidiaries, net — 42 Total liabilities 1,378 43 Stockholders' equity: Preferred stock, $0.01 par value, no shares issued and outstanding — — Common stock, $0.01 par value, 477,233,278 and 158,235,410 shares issued, respectively and 449,782,424 and 156,206,478 shares outstanding, respectively 5 2 Additional paid-in capital 6,209 3,047 Accumulated deficit (2,315) (2,681) Accumulated other comprehensive income (loss) (214) (212) Equity before treasury stock 3,685 156 Treasury stock, at cost, 27,450,854 and 2,028,932 common shares as of December 31, 2021 and 2020, respectively (708) (100) Total stockholders' equity 2,977 56 Total liabilities and stockholders' equity $ 4,355 $ 99 The accompanying notes are an integral part of these financial statements. PARENT COMPANY STATEMENTS OF OPERATIONS (In millions) Years Ended December 31, 2021 2020 2019 Total Revenues $ — $ — $ — Expenses: Interest expense, net — 2 7 Write-off of intercompany loan — (133) — Reorganization items net 164 — — Change in fair value of Public Warrants 627 — — Total expenses 791 (131) 7 Income (loss) before income taxes and equity in earnings (losses) of subsidiaries (791) 131 (7) Income tax (provision) benefit — 1 2 Equity in earnings (losses) of subsidiaries, net of tax 1,157 (1,846) (53) Net income (loss) 366 (1,714) (58) Series A Preferred Stock deemed dividends (450) — — Net income (loss) available to Hertz Holdings common stockholders $ (84) $ (1,714) $ (58) The accompanying notes are an integral part of these financial statements. PARENT COMPANY STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (In millions) Years Ended December 31, 2021 2020 2019 Net income (loss) $ 366 $ (1,714) $ (58) Total other comprehensive income (loss) (2) (23) 3 Total comprehensive income (loss) $ 364 $ (1,737) $ (55) The accompanying notes are an integral part of these financial statements. PARENT COMPANY STATEMENTS OF CASH FLOWS (In millions) Years Ended December 31, 2021 2020 2019 Net cash provided by (used in) operating activities $ — $ (3) $ (7) Cash flows from financing activities: Proceeds from loans with Hertz — 5 12 Proceeds from Plan Sponsors 2,781 — — Proceeds from rights offerings, net 1,639 — 748 Contributions to Hertz (5,642) — (750) Proceeds from exercises of Public Warrants 77 — — Proceeds from issuance of preferred stock 1,433 — — Distributions to common stockholders (239) — — Purchases of treasury shares (654) — — Repurchase of preferred stock (1,883) — — Payments for Nasdaq listing costs (9) — — Dividends from Hertz 2,470 — — Proceeds from issuance of stock, net — 28 — Other — (2) (3) Net cash provided by (used in) financing activities (27) 31 7 Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents during the period (27) 28 — Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period 28 — — Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period $ 1 $ 28 $ — The accompanying notes are an integral part of these financial statements. Hertz Global Holdings, Inc. was incorporated in Delaware in 2015 and wholly owns Rental Car Intermediate Holdings, LLC which wholly owns Hertz, Hertz Global's primary operating company. On May 22, 2020, Hertz Global, Hertz and certain of their direct and indirect subsidiaries in the U.S. and Canada filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware. On June 30, 2021, these entities emerged from bankruptcy. The Chapter 11 Cases were being jointly administered by the Bankruptcy Court under the caption In re The Hertz Corporation, et al., Case No. 20-11218 (MFW) . Refer to Note 1, "Background," to its Notes to the consolidated financial statements included in this 2021 Annual Report under the caption Item 8, "Financial Statements and Supplementary Data," for further information. These condensed parent company financial statements reflect the activity of Hertz Holdings as the parent company to Hertz and have been prepared in accordance with Rule 12-04, Schedule 1 of Regulation S-X, as the restricted net assets of Hertz exceed 25% of the consolidated net assets of Hertz Holdings. This information should be read in conjunction with the consolidated financial statements of Hertz Global included in this 2021 Annual Report under the caption Item 8, "Financial Statements and Supplementary Data." For a discussion of the commitments and contingencies of Hertz Holdings, refer to the sections below included in Note 14, "Contingencies and Off-Balance Sheet Commitments," to the Notes to its consolidated financial statements included in this 2021 Annual Report under the caption Item 8, "Financial Statements and Supplementary Data." • In re Hertz Global Holdings, Inc. Securities Litigation • Litigation Against Former Executives The remaining sections of Note 14, "Contingencies and Off-Balance Sheet Commitments," and Note 9, "Leases," to the Notes to its consolidated financial statements included in this 2021 Annual Report under the caption Item 8, "Financial Statements and Supplementary Data," describe the commitments and contingencies of Hertz Holdings, including its subsidiaries. 27,450,854 shares for $708 million. This amount was included in treasury stock in the accompanying parent-only balance sheets of Hertz Holdings as of December 31, 2021. Between January 1, 2022 and February 17, 2022, Hertz Holdings repurchased a total of 20,589,620 shares for $431 million. For a discussion of Hertz Holdings transactions with Hertz under the master loan, refer to Note 15, "Related Party Transactions," to the Notes to its consolidated financial statements in this 2021 Annual Report under the caption Item 8, "Financial Statements and Supplementary Data." For the year ended December 31, 2020, the negative balance in investments in subsidiaries, net in the accompanying parent-only balance sheet of Hertz Holdings reflects the $42 million stockholder's deficit attributable to Hertz. |
SCHEDULE II VALUATION AND QUALI
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2021 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS HERTZ GLOBAL HOLDINGS, INC. AND SUBSIDIARIES THE HERTZ CORPORATION AND SUBSIDIARIES (In millions) Balance at Beginning of Period Additions Charged to Expense Translation Adjustments Deductions Balance at End of Period Receivables allowances: Year ended December 31, 2021 $ 46 $ 125 $ — $ (121) (1) $ 50 Year ended December 31, 2020 35 94 (2) — (83) (1)(2) 46 Year ended December 31, 2019 27 53 — (45) (1) 35 Tax valuation allowances: Year ended December 31, 2021 $ 651 $ 78 $ (39) $ — $ 690 Year ended December 31, 2020 396 218 37 — 651 Year ended December 31, 2019 318 75 3 — 396 (1) Amounts written off, net of recoveries. (2) Activity includes allowances associated with Donlen which have been classified as held for sale as of December 31, 2020, as disclosed in Note 3, "Divestitures," to the notes to the Company's consolidated financial statements in this 2021 Annual Report under the caption Item 8, "Financial Statements and Supplementary Data." |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Reclassifications | Reclassifications Certain prior period amounts have been reclassified to conform with current period presentation. Non-vehicle depreciation expense is now reported on a separate line item in the consolidated statement of operations for all periods presented. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements of Hertz Global include the accounts of Hertz Global, its wholly-owned and majority owned U.S. and international subsidiaries, and its VIEs, as applicable. The consolidated financial statements of Hertz include the accounts of Hertz, its wholly-owned and majority-owned U.S. and international subsidiaries, and its VIEs, as applicable. The Company consolidates a VIE when it is deemed the primary beneficiary. 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 are eliminated in consolidation. |
Use of Estimates and Assumptions | Use of Estimates and Assumptions 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 consolidated financial statements and footnotes. Actual results could differ materially from those estimates. Significant estimates inherent in the preparation of the consolidated financial statements include depreciation of revenue earning vehicles, reserves for litigation and other contingencies, accounting for income taxes and related uncertain tax positions, pension and postretirement benefit costs, the recoverability of long-lived assets, useful lives and impairment of long-lived tangible and intangible assets including goodwill, valuation of stock-based compensation, self-insured liabilities, allowance for doubtful accounts, the retail value of loyalty points, and fair value of financial instruments, among others. |
Revenue Earnings Vehicles and Property and Equipment, Net | Revenue Earning Vehicles Revenue earning vehicles are stated at cost, net of related discounts and incentives from manufacturers. Holding periods typically range from six associated with disposals, are included in depreciation of revenue earning vehicles and lease charges in the accompanying consolidated statements of operations. For program vehicles, the manufacturers agree to repurchase program vehicles at a specified price or guarantee the depreciation rate on the vehicles during established repurchase or auction periods, subject to, among other things, certain vehicle condition, mileage and holding period requirements. Guaranteed depreciation programs guarantee on an aggregate basis the residual value of the program vehicle upon sale according to certain parameters which include the holding period, mileage and condition of the vehicles. The Company records a provision in accumulated depreciation for excess mileage and vehicle condition, as necessary, during the holding period. Donlen's revenue earning vehicles were leased under long term agreements with its customers. These leases contained provisions whereby Donlen had a contracted residual value guaranteed by the lessee, such that it did not bear the risk of any gains or losses on the disposal of these vehicles. Donlen accounted for its lease contracts using the appropriate lease classifications. The Donlen business was sold on March 30, 2021, as disclosed in Note 3 , " Divestitures ." The Company continually evaluates revenue earning vehicles to determine whether events or changes in circumstances have occurred that may warrant revision of the residual value or holding period. Property and Equipment, Net The Company's property and equipment, net consisted of the following: (In millions) December 31, 2021 December 31, 2020 Land, buildings and leasehold improvements $ 971 $ 1,277 Service vehicles, equipment and furniture and fixtures 339 761 Less: accumulated depreciation (702) (1,372) Total property and equipment, net $ 608 $ 666 Land is stated at cost and reviewed annually for impairment as further disclosed above in "Long-lived Assets, Including Finite-lived Intangible Assets." Property and equipment are stated at cost and are depreciated utilizing the straight-line method over the estimated useful lives of the related assets. Estimated useful lives are as follows: Buildings 1 to 50 years Furniture and fixtures 1 to 5 years Service vehicles and equipment 1 to 25 years Leasehold improvements The lesser of the economic life or the lease term Depreciation expense for property and equipment, net for the years ended December 31, 2021, 2020 and 2019 was $108 million, $129 million and $122 million, respectively. The Company follows the practice of charging maintenance and repair costs for service vehicles, furniture and fixtures, and equipment, including the cost of minor replacements, to maintenance expense. |
Self-insured Liabilities | Self-insured Liabilities Self-insured liabilities in the accompanying consolidated balance sheets include public liability, property damage, general liability, liability insurance supplement, personal accident insurance, and worker's compensation. These represent an estimate for both reported accident claims not yet paid, and claims incurred but not yet reported and are recorded on an undiscounted 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 and administrative costs. The adequacy of the liability is regularly monitored based on evolving accident claim history and insurance related state legislation changes. If the Company's estimates change or if actual results differ from these assumptions, the amount of the recorded liability is adjusted to reflect these results. |
Recoverability of Goodwill and Indefinite-lived Intangible Assets | Recoverability of Goodwill and Indefinite-lived Intangible Assets The Company tests the recoverability of its goodwill and indefinite-lived intangible assets by performing an impairment analysis on an annual basis, as of October 1, and at interim periods when circumstances require as a result of a triggering event. A goodwill impairment charge is calculated as the amount by which a reporting unit's carrying amount exceeds its fair value. For goodwill, fair value is determined using an income approach based on the discounted cash flows of each reporting unit. A reporting unit is an operating segment or a business one level below that operating segment (the component level) if discrete financial information is prepared and regularly reviewed by segment management. Components are aggregated into a single reporting unit when they have similar economic characteristics. In the second quarter of 2021, in connection with the Chapter 11 Emergence as disclosed in Note 1 , " Background," and changes in how the Company's CODM regularly reviews operating results and allocates resources, the Company revised its reportable segments to include Canada, Latin America and the Caribbean in its Americas RAC reportable segment, which were previously included in its International RAC reportable segment. Accordingly, prior periods have been restated to conform with the revised presentation. The Company has identified two 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: Americas RAC and International RAC. The fair values of the reporting units are estimated using the net present value of discounted cash flows generated by each reporting unit and incorporate various assumptions related to discount rates, growth rates, cash flow projections, tax rates and terminal value rates specific to the reporting unit to which they are applied. Discount rates are set by using the WACC methodology. The Company’s discounted cash flows are based upon reasonable and appropriate assumptions about the underlying business activities of the Company’s reporting units. In the impairment analysis for an indefinite-lived intangible asset, the Company compares the carrying value of the asset to its estimated fair value and recognizes an impairment charge whenever the carrying amount of the asset exceeds its estimated fair value. The estimated fair value for a tradename utilizes a relief-from-royalty income approach, which includes the Company’s revenue projections for each asset, along with assumptions for royalty rates, tax rates and WACC. |
Income Taxes | Income Taxes The Company recognized the effects of the TCJA enacted on December 22, 2017, which created the global intangible low-tax income ("GILTI") provision that imposes U.S. tax on certain earnings of foreign subsidiaries that are subject to foreign tax below a certain threshold. GILTI taxes are recorded in current income tax expense as incurred. In 2018 and 2019, the Company asserted indefinite reinvestment on certain of its foreign earnings. Effective as of December 31, 2020, the Company no longer asserts permanent reinvestment of foreign earnings, due to the impact from COVID-19, as disclosed in Note 1, "Background." Valuation Allowances The Company’s current and future provision for income taxes is impacted by the initial recognition of and changes in valuation allowances in certain jurisdictions. The Company intends to maintain these allowances until it is more likely than not that the deferred tax assets will be realized. The Company’s future provision for income taxes will include no tax benefit with respect to losses incurred in these jurisdictions. Accordingly, income taxes are impacted by changes in valuation allowances and the mix of earnings among jurisdictions. The Company evaluates the realizability of its deferred tax assets on a quarterly basis. In completing this evaluation, the Company considers all available evidence in order to determine whether, based on the weight of the evidence, a valuation allowance for its deferred tax assets is necessary. Such evidence includes the evaluation of historical cumulative earnings and losses in recent years, future reversals of deferred tax liabilities, the availability of carry forwards and the remaining period of the respective carry forward, future taxable income (exclusive of the reversal of temporary differences and carryforwards), and any applicable tax-planning strategies that are available. If, based on the weight of the evidence, it is more likely than not that all or a portion of the Company’s deferred tax assets will not be realized, a valuation allowance is recorded. If operating results improve or decline on a continual basis in a particular jurisdiction, the Company’s decision regarding the need for a valuation allowance could change resulting in either the initial recognition or reversal of a valuation allowance in that jurisdiction, which could have a significant impact on income tax expense in the period recognized and subsequent periods. In determining the provision for income taxes for financial statement purposes, the Company makes certain estimates and judgments, which affect its evaluation of the carrying value of its deferred tax assets, as well as its calculation of certain tax liabilities. Uncertain Tax Positions The calculation of the Company’s gross unrecognized tax benefits and liabilities includes uncertainties in the application of, and changes in, complex tax regulations in a multitude of jurisdictions across its global operations. The Company recognizes tax benefits and liabilities based on its estimates of whether, and the extent to which, additional taxes will be due. The Company adjusts these benefits and liabilities based on changing facts and circumstances; however, due to the complexity of these uncertainties and the impact of tax audits, the ultimate resolutions may differ significantly from the Company’s estimates. |
Revenue Recognition | Revenue Recognition In February 2016, the FASB issued guidance that replaced the existing lease guidance in U.S. GAAP and in 2018 and 2019 issued amendments and updates to the new lease standard (collectively "Topic 842"). Upon adoption of Topic 842, on January 1, 2019, the Company accounts for revenue earned from vehicle rentals and rental related activities wherein an identified asset is transferred to the customer and the customer has the ability to control that asset under Topic 842, as further updated in 2021. The Company recognizes two types of revenue: (i) lease revenue; and (ii) revenue from contracts with customers. The Company reports revenues for taxes or non-concession fees collected from customers on behalf of governmental authorities on a net basis. 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. 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 charged 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 expense. 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. Upon adoption of ASC 606, Revenue from Contracts with Customers ("Topic 606"), each transaction that generates loyalty points results in the deferral of revenue equivalent to the retail value at the date the points are earned. 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 current retail value measured as of the date the loyalty points are earned, less an estimated amount representing loyalty points that are not expected to be redeemed (“breakage”). Breakage is reviewed on a quarterly basis and includes significant assumptions such as historical breakage trends and internal Company forecasts. 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 lease incentives 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 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 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. 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 in the accompanying consolidated statements of operations. Fleet Leasing and Fleet Management Revenue The Company's Donlen subsidiary, which sold substantially all of its assets and certain liabilities on March 30, 2021, generated revenue from various fleet leasing and fleet management services. Donlen’s operating leases for fleets had lease periods that were typically for twelve months, after which the lease converted to a month-to-month lease, allowing the vehicle to be surrendered any time thereafter. The Company's fleet leases contained a terminal rental adjustment clause ("TRAC") where, upon sale of the vehicle following the termination of the lease, a TRAC adjustment may result through which the lessee was credited or charged with the gain or loss on the vehicle's disposal. Such TRAC adjustments were considered variable charges. Fleet management services were comprised of fuel purchasing and management, preventive vehicle maintenance, repair consultation, toll management and accident management. Fleet management revenue was recognized net of any fees collected from customers on behalf of third-party service providers, as services were 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. |
Cash, Restricted Cash, Cash Equivalents and Restricted Cash Equivalents | Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents Cash and cash equivalents include cash on hand and highly liquid investments with an original maturity of three months or less. The Company's cash and cash equivalents are invested in various investment grade institutional money market funds, and bank money market and interest-bearing accounts. Restricted cash and restricted cash equivalents include cash and cash equivalents that are not readily available for use in the Company's operating activities. Restricted cash and restricted cash equivalents are primarily comprised of proceeds from the disposition of vehicles pledged under the terms of vehicle debt financing arrangements and are restricted for the purchase of revenue earning vehicles and other specified uses under the vehicle debt facilities, cash utilized as credit enhancement under those arrangements, proceeds from the Term Loan C which are utilized to collateralize letters of credit, and certain cash accounts supporting regulatory reserve requirements related to the Company's self-insurance. These funds are primarily held in demand deposit and money market accounts or in highly rated money market funds with investments primarily in government and corporate obligations. Deposits held at financial institutions may exceed the amount of insurance provided on such deposits. Generally, these deposits may be redeemed upon demand and are maintained with financial institutions with reputable credit and therefore bear minimal credit risk. The Company limits exposure relating to financial instruments by diversifying the financial instruments among various counterparties, which consist of major financial institutions. |
Receivables, Net of Allowance | Receivables, Net of Allowance Receivables are stated net of allowances and primarily represent credit extended to vehicle manufacturers, customers that satisfy defined credit criteria, and amounts due from customers resulting from damage to rental vehicles. The estimate of the allowance for doubtful accounts is based on the Company's future expected losses and its judgement as to the likelihood of ultimate payment. Actual receivables are written-off against the allowance for doubtful accounts when the Company determines the balance will not be collected. Estimates for future credit memos are based on historical experience and are reflected as reductions to revenue, while bad debt expense is reflected as a component of direct vehicle and operating expense in the accompanying consolidated statements of operations. |
Long-lived Assets, Including Finite-lived Intangible Assets | Long-lived Assets, Including Finite-lived Intangible Assets Finite-lived intangible assets include concession agreements, technology, customer relationships and other intangibles. Long-lived assets and intangible assets with finite lives, including technology-related intangibles, are amortized using the straight-line method over the estimated economic lives of the assets, which range from one fifty years two twenty years |
Stock-Based Compensation | Stock-Based Compensation The Company measures the cost of employee services received in exchange for an award of equity instruments based on the grant date fair value of the award. That cost is to be recognized over the period during which the employee is required to provide service in exchange for the award. Forfeitures are accounted for when they occur. The Company has estimated the fair value of options issued at the date of grant using a Black-Scholes option-pricing model, which includes assumptions related to volatility, expected term, dividend yield and risk-free interest rate. The Company accounts for restricted stock unit ("RSU") and performance stock unit ("PSU") awards when granted as equity classified awards. For RSUs the expense is based on the grant-date fair value of the stock and the number of shares that vest, recognized over the service period. For any PSUs and performance share awards ("PSAs") granted, the expense is based on the grant-date fair value of the stock, recognized over a service period depending upon the applicable performance condition. For any PSUs and PSAs, the Company re-assesses the probability of achieving the applicable performance condition quarterly and adjusts the recognition of expense accordingly. The Company includes the excess tax benefit within income tax expense in the accompanying consolidated statements of operations when realized. |
Fair Value Measurements | Fair Value Measurements U.S. GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the principal market or, if none exists, the most advantageous market, for the specific asset or liability at the measurement date (referred to as the "exit price"). Fair value is a market-based measurement that is determined based upon assumptions that market participants would use in pricing an asset or liability, including consideration of nonperformance risk. The Company assesses the inputs used to measure fair value using the three-tier hierarchy promulgated under U.S. GAAP. This hierarchy indicates the extent to which inputs used in measuring fair value are observable in the market. Level 1: Inputs that reflect quoted prices for identical assets or liabilities in active markets that are observable. Level 2: Inputs other than quoted prices included in Level 1 that are observable either directly or indirectly, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3: Inputs that are unobservable to the extent that observable inputs are not available for the asset or liability at the measurement date and include management's judgment about assumptions market participants would use in pricing the asset or liability. |
Financial Instruments | Financial Instruments The Company is exposed to a variety of market risks, including the effects of changes in interest rates, gasoline and diesel fuel prices and foreign currency exchange rates. The Company manages exposure to these market risks through regular operating and financing activities and, when deemed appropriate, through the use of derivative financial instruments. Financial instruments are viewed as risk management tools and have not been used for speculative or trading purposes. In addition, financial instruments are entered into with a diversified group of major financial institutions in order to manage the Company's exposure to counterparty nonperformance on such instruments. The Company measures all financial instruments at their fair value and does not offset the derivative assets and liabilities in its accompanying consolidated balance sheets. As the Company does not have financial instruments that are designated and qualify as hedging instruments, the changes in their fair value are recognized currently in the Company's operating results. |
Foreign Currency Translation and Transactions | Foreign Currency Translation and Transactions Assets and liabilities of international subsidiaries whose functional currency is the local currency are translated at the rate of exchange in effect on the balance sheet date; income and expenses are translated at the average exchange rates throughout the year. The related translation adjustments are reflected in accumulated other comprehensive income (loss) in the accompanying consolidated balance sheets. Foreign currency exchange rate gains and losses resulting from transactions are included in other (income) expense in the accompanying consolidated statements of operations. |
Advertising | Advertising Advertising production costs are deferred and expensed when the advertising first takes place. Advertising communication costs are expensed as incurred. Advertising costs are reflected as a component of selling, general and administrative expenses in the accompanying consolidated statements of operations and for the years ended December 31, 2021, 2020 and 2019 were $162 million, $112 million and $318 million, respectively. |
Divestitures | Divestitures The Company classifies long-lived assets and liabilities to be disposed of as held for sale in the period in which they are available for immediate sale in their present condition and the sale is probable and expected to be completed within one year. The Company initially measures assets and liabilities held for sale at the lower of their carrying value or fair value less costs to sell and assesses their fair value quarterly until disposed. When the divestiture represents a strategic shift that has (or will have) a major effect on the Company's operations and financial results, the disposal is presented as a discontinued operation. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Adopted Scope of Reference Rate Reform In January 2021, the FASB issued guidance that clarifies that entities with derivative instruments affected by changes to the interest rates used for discounting, margining or contract price alignment due to reference rate reform may elect to apply certain optional expedients and exceptions, including contract modification relief, provided in Topic 848. Entities may elect to apply the guidance on contract modifications either (1) retrospectively as of any date from the beginning of any interim period that includes March 12, 2020 or (2) prospectively to new modifications from any date in an interim period that includes or is after January 7, 2021, up to the date that financial statements are available to be issued. The Company will apply the guidance prospectively, as applicable, and does not expect a material impact on its financial position, results of operations or cash flows. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Property, Plant and Equipment | The Company's property and equipment, net consisted of the following: (In millions) December 31, 2021 December 31, 2020 Land, buildings and leasehold improvements $ 971 $ 1,277 Service vehicles, equipment and furniture and fixtures 339 761 Less: accumulated depreciation (702) (1,372) Total property and equipment, net $ 608 $ 666 |
Schedule of Estimated Useful Lives of Depreciable Assets | Property and equipment are stated at cost and are depreciated utilizing the straight-line method over the estimated useful lives of the related assets. Estimated useful lives are as follows: Buildings 1 to 50 years Furniture and fixtures 1 to 5 years Service vehicles and equipment 1 to 25 years Leasehold improvements The lesser of the economic life or the lease term |
Divestitures (Tables)
Divestitures (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Assets Held for Sale Not Part of Disposal Group | The major classes of assets and liabilities held for sale as of December 31, 2020 are presented below at their carrying value. (in millions) December 31, 2020 ASSETS Cash and cash equivalents $ 3 Restricted cash and cash equivalents 68 Receivables, net 207 Prepaid expenses and other assets 28 Revenue earning vehicles, net 1,432 Property and equipment, net 6 Operating lease right-of-use assets 2 Intangible assets, net 29 Goodwill 36 Total assets held for sale $ 1,811 LIABILITIES Accounts payable $ 76 Accrued liabilities 19 Accrued taxes, net 3 Vehicle debt 1,327 Operating lease liabilities 6 Total liabilities held for sale $ 1,431 |
Revenue Earning Vehicles (Table
Revenue Earning Vehicles (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Components of Revenue Earning Vehicles, Net | The components of revenue earning vehicles, net are as follows: December 31, (In millions) 2021 2020 (1) Revenue earning vehicles $ 10,506 $ 7,492 Less accumulated depreciation (1,518) (1,467) 8,988 6,025 Revenue earning vehicles held for sale, net (2) 238 37 Revenue earning vehicles, net $ 9,226 $ 6,062 (1) Excludes amounts associated with Donlen that are classified as held for sale as of December 31, 2020. See Note 3, "Divestitures," for additional information. (2) Represents the carrying amount of vehicles placed on the Company's retail lots for sale or actively in the process of being sold through other disposition channels. |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Changes in Goodwill, by Segment | The following summarizes the changes in the Company's goodwill by segment: (In millions) Americas RAC segment International RAC segment Total Balance as of January 1, 2021 Goodwill (1) $ 1,029 $ 236 $ 1,265 Accumulated impairment losses — (220) (220) 1,029 16 1,045 Goodwill disposal and other changes during the period — — — — — — Balance as of December 31, 2021 Goodwill 1,029 236 1,265 Accumulated impairment losses — (220) (220) $ 1,029 $ 16 $ 1,045 (1) Excludes goodwill of $36 million associated with Donlen that was classified as held for sale as of December 31, 2020. See Note 3, "Divestitures," for additional information. (In millions) Americas RAC segment International RAC segment Total (1) Balance as of January 1, 2020 Goodwill $ 1,029 $ 236 $ 1,265 Accumulated impairment losses — (218) (218) 1,029 18 1,047 Goodwill disposal and other changes during the period — (2) (2) — (2) (2) Balance as of December 31, 2020 Goodwill 1,029 236 1,265 Accumulated impairment losses — (220) (220) $ 1,029 $ 16 $ 1,045 (1) Excludes goodwill of $36 million associated with Donlen that was classified as held for sale as of December 31, 2020. See Note 3, "Divestitures," for additional information. |
Schedule of Components of Other Intangible Assets by Major Classes | Intangible assets, net, consists of the following major classes: December 31, 2021 (In millions) Gross Accumulated Net Amortizable intangible assets: Customer-related $ 269 $ (269) $ — Concession rights 408 (405) 3 Technology-related intangibles 359 (271) 88 Other (1) 48 (45) 3 Total 1,084 (990) 94 Indefinite-lived intangible assets: Tradenames (2) 2,794 — 2,794 Other (3) 24 — 24 Total 2,818 — 2,818 Total intangible assets, net $ 3,902 $ (990) $ 2,912 December 31, 2020 (4) (In millions) Gross Accumulated Net Amortizable intangible assets: Customer-related $ 269 $ (269) $ — Concession rights 408 (365) 43 Technology-related intangibles 355 (228) 127 Other (1) 48 (44) 4 Total 1,080 (906) 174 Indefinite-lived intangible assets: Tradenames (2) 2,794 — 2,794 Other (3) 24 — 24 Total 2,818 — 2,818 Total intangible assets, net $ 3,898 $ (906) $ 2,992 (1) Other amortizable intangible assets primarily include reacquired franchise rights. (2) As of December 31, 2021 and 2020, $2.2 billion was recorded in the Company's Americas RAC segment and $600 million in the Company's International RAC segment. (3) Other indefinite-lived intangible assets primarily consist of reacquired franchise rights. (4) Excludes intangible assets associated with Donlen that were classified as held for sale as of December 31, 2020. See Note 3, "Divestitures," for additional information. |
Finite-lived Intangible Assets Amortization Expense | Years Ended December 31, (In millions) 2021 2020 2019 Amortization of intangible assets $ 88 $ 96 $ 81 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The following table summarizes the Company's expected amortization expense based on its amortizable intangible assets as of December 31, 2021: (In millions) 2022 $ 41 2023 24 2024 17 2025 6 2026 2 After 2026 4 Total expected amortization expense $ 94 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The Company's debt, including its available credit facilities, consists of the following ($ in millions) as of December 31, 2021 and 2020. The table and disclosures below exclude debt associated with Donlen that was classified as held for sale as of December 31, 2020. See Note 3, "Divestitures," for additional information. Facility Weighted-Average Interest Rate as of December 31, 2021 Fixed or Maturity December 31, December 31, Non-Vehicle Debt Term B Loan 3.75% Floating 6/2028 $ 1,294 $ — Term C Loan 3.75% Floating 6/2028 245 — Senior Notes Due 2026 4.63% Fixed 12/2026 500 — Senior Notes Due 2029 5.00% Fixed 12/2029 1,000 — First Lien RCF N/A Floating 6/2026 — — Other Non-Vehicle Debt (1) 8.49% Fixed Various 16 18 Senior Secured Superpriority Debtor-in-Possession Credit Agreement N/A N/A N/A — 250 Unamortized Debt Issuance Costs and Net (Discount) Premium (69) (25) Total Non-Vehicle Debt Not Subject to Compromise 2,986 243 Non-Vehicle Debt Subject to Compromise (2) Senior Term Loan N/A N/A N/A — 656 Senior RCF N/A N/A N/A — 615 Senior Notes (2) N/A N/A N/A — 2,700 Senior Second Priority Secured Notes N/A N/A N/A — 350 Promissory Notes N/A N/A N/A — 27 Alternative Letter of Credit Facility (3) N/A N/A N/A — 114 Senior RCF Letter of Credit Facility N/A N/A N/A — 17 Unamortized Debt Issuance Costs and Net (Discount) Premium — (36) Total Non-Vehicle Debt Subject to Compromise — 4,443 Vehicle Debt HVF III U.S. ABS Program HVF III U.S. Vehicle Variable Funding Notes HVF III Series 2021-A Class A (4) 1.62% Floating 6/2023 2,813 — Facility Weighted-Average Interest Rate as of December 31, 2021 Fixed or Maturity December 31, December 31, HVF III Series 2021-A Class B (4) 3.65% Fixed 6/2023 188 — 3,001 — HVF III U.S. Vehicle Medium Term Notes HVF III Series 2021-1 (4) 1.66% Fixed 12/2024 2,000 — HVF III Series 2021-2 (4) 2.12% Fixed 12/2026 2,000 — 4,000 — HVF II U.S. ABS Program HVF II U.S. Vehicle Variable Funding Notes HVF II Series 2013-A (5) N/A N/A N/A — 1,940 — 1,940 HVF II U.S. Vehicle Medium Term Notes HVF II Series 2015-3 N/A N/A N/A — 163 HVF II Series 2016-2 N/A N/A N/A — 263 HVF II Series 2016-4 N/A N/A N/A — 187 HVF II Series 2017-1 N/A N/A N/A — 199 HVF II Series 2017-2 N/A N/A N/A — 164 HVF II Series 2018-1 N/A N/A N/A — 468 HVF II Series 2018-2 N/A N/A N/A — 94 HVF II Series 2018-3 N/A N/A N/A — 95 HVF II Series 2019-1 N/A N/A N/A — 330 HVF II Series 2019-2 N/A N/A N/A — 354 HVF II Series 2019-3 N/A N/A N/A — 352 — 2,669 Vehicle Debt - Other European Vehicle Notes (6) N/A N/A N/A — 888 European ABS (4) 1.80% Floating 10/2023 395 263 Hertz Canadian Securitization (4) 2.49% Floating 1/2023 191 53 Australian Securitization (4) 1.66% Floating 4/2022 128 97 New Zealand RCF 3.49% Floating 6/2022 39 35 U.K. Financing Facility 3.68% Floating 1/2022-12/2024 98 105 U.K. Toyota Financing Facility 2.20% Floating 2/2022-2/2023 9 — Other Vehicle Debt 2.89% Floating 1/2022-12/2024 93 37 953 1,478 Unamortized Debt Issuance Costs and Net (Discount) Premium (33) (63) Total Vehicle Debt Not Subject to Compromise 7,921 6,024 Total Debt Not Subject to Compromise $ 10,907 $ 6,267 N/A - Not applicable (1) Other non-vehicle debt is primarily comprised of $12 million in capital lease obligations (2) Reference to the "Senior Notes" includes the series of Hertz's unsecured senior notes set forth in the table below which were included in liabilities subject to compromise in the accompanying consolidated balance sheet as of December 31, 2020. On the Effective Date, in accordance with the Plan of Reorganization, the Senior Notes were repaid in full and terminated. On July 1, 2021, Wells Fargo Bank, National Association, as indenture trustee for the Senior Notes, filed a complaint against Hertz and certain of its subsidiaries requesting declaratory judgement that additional amounts are owed with respect to certain premiums and post-petition interest with respect to the Senior Notes. Hertz disputes that any such amounts are owed and on August 2, 2021 filed a motion to dismiss the complaint. On December 23, 2021, the Company's motion to dismiss was granted by the Bankruptcy Court. See Note 14, "Contingencies and Off-Balance Sheet Commitments," for additional information. (In millions) Outstanding Principal Senior Notes December 31, 2021 December 31, 2020 6.250% Senior Notes due October 2022 $ — $ 500 5.500% Senior Notes due October 2024 — 800 7.125% Senior Notes due August 2026 — 500 6.000% Senior Notes due January 2028 — 900 $ — $ 2,700 (3) Includes default interest as of December 31, 2020. (4) 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 originally 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. (5) Includes default interest as of December 31, 2020, which was comprised of an increase in the contractual spread. (6) 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 ("Hertz Netherlands"), unsecured senior notes (converted from Euros to U.S. Dollars at a rate of 1.22 to 1 as of December 31, 2020) set forth in the table below. On the Effective Date, in accordance with the Plan of Reorganization, the European Vehicle Notes were repaid in full and cancelled. (In millions) Outstanding Principal European Vehicle Notes December 31, 2021 December 31, 2020 4.125% Senior Notes due October 2021 $ — $ 276 5.500% Senior Notes due March 2023 — 612 $ — $ 888 The fair value of the debt facilities 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 (i.e. Level 2 inputs). December 31, 2021 December 31, 2020 (In millions) Nominal Unpaid Principal Balance Aggregate Fair Value Nominal Unpaid Principal Balance Aggregate Fair Value Non-Vehicle Debt (1) $ 3,055 $ 3,065 $ 4,747 $ 3,382 Vehicle Debt 7,954 7,908 6,087 6,021 Total $ 11,009 $ 10,973 $ 10,834 $ 9,403 (1) Includes Non-Vehicle Debt included in liabilities subject to compromise in the accompanying consolidated balance sheet as of December 31, 2020. See Note 6, "Debt." |
Schedule of Extinguishment of Debt | The following table reflects the amount of loss for each respective redemption/termination: Years Ended December 31, Redemption/Termination (in millions) 2021 2020 2019 Non-Vehicle Debt HIL Credit Agreement (1) $ 8 $ — $ — Second HIL Credit Agreement 5 — — Total Non-Vehicle Debt 13 — — Non-Vehicle Debt (subject to compromise) Senior Term Loan 16 — — Senior RCF 22 — — Senior Notes 29 — — Senior Second Priority Secured Notes (2) 4 — 39 Promissory Notes 2 — — Alternative Letter of Credit Facility 7 — — Letter of Credit Facility 8 — — 5.875% Senior Notes due 2020 (2) — — 2 7.375% Senior Notes due 2021 (2) — — 2 Total Non-Vehicle Debt (subject to compromise) 88 — 43 Vehicle Debt HVF II U.S. Vehicle Variable Funding Notes 9 — — HVF II U.S. Vehicle Medium Term Notes 39 — — HVIF II Series 2020-1 21 — — European Vehicle Notes 29 — — European ABS (3) — 5 — Total Vehicle Debt 98 5 — Total Loss on Extinguishment of Debt $ 199 $ 5 $ 43 (1) The loss on extinguishment is recorded in non-vehicle interest expense, net in the accompanying consolidated income statement for the year ended December 31, 2021. (2) The loss on extinguishment incurred in 2019 was recorded in non-vehicle interest expense, net in the accompanying consolidated income statement for the year ended December 31, 2019. (3) The loss on extinguishment was recorded in vehicle interest expense, net in the accompanying consolidated income statement for the year ended December 31, 2020. |
Components of Maturities of Debt | As of December 31, 2021, the nominal amounts of maturities of debt for each of the years ending December 31 are as follows: (In millions) 2022 2023 2024 2025 2026 After 2026 Non-Vehicle Debt $ 20 $ 20 $ 15 $ 13 $ 513 $ 2,474 Vehicle Debt 311 3,617 2,026 — 2,000 — Total $ 331 $ 3,637 $ 2,041 $ 13 $ 2,513 $ 2,474 |
Schedule of Borrowing Capacity | The following facilities were available to the Company as of December 31, 2021 and are presented net of any outstanding letters of credit: (In millions) Remaining Availability Under Non-Vehicle Debt First Lien RCF $ 925 $ 925 Total Non-Vehicle Debt 925 925 Vehicle Debt HVF III Series 2021-A — — European ABS 456 — Hertz Canadian Securitization 82 — Australian Securitization 24 — U.K. Financing Facility 37 — U.K. Toyota Financing Facility 5 — New Zealand RCF 2 — Total Vehicle Debt 606 — Total $ 1,531 $ 925 |
Employee Retirement Benefits (T
Employee Retirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Schedule of Net Funded Status | The following tables set forth the funded status and the net periodic pension cost of the Hertz Retirement Plan and other U.S. based retirement plans, other postretirement benefit plans including health care and life insurance plans covering domestic (i.e., U.S.) employees and the retirement plans for international operations (“Non-U.S.”), together with amounts included in the accompanying consolidated balance sheets and statements of operations: Pension Benefits Postretirement U.S. Non-U.S. Benefits (U.S.) (In millions) 2021 2020 2021 2020 2021 2020 Change in Benefit Obligation Benefit obligation as of January 1 $ 522 $ 559 $ 340 $ 286 $ 12 $ 12 Service cost — — 1 1 — — Interest cost 12 15 4 5 1 — Plan curtailments — (2) — — — — Plan settlements (26) (88) (6) (5) — — Benefits paid (27) (3) (5) (6) (1) (1) Foreign currency exchange rate translation — — (7) 17 — — Actuarial (gain) loss (16) 41 (20) 42 — 1 Benefit obligation as of December 31 (1) $ 465 $ 522 $ 307 $ 340 $ 12 $ 12 Change in Plan Assets Fair value of plan assets as of January 1 $ 488 $ 503 $ 258 $ 228 $ — $ — Actual return gain on plan assets 9 74 4 28 — — Company contributions 24 2 5 4 1 1 Plan settlements (26) (88) (6) (5) — — Benefits paid (27) (3) (5) (6) (1) (1) Foreign currency exchange rate translation — — (1) 9 — — Fair value of plan assets as of December 31 $ 468 $ 488 $ 255 $ 258 $ — $ — Funded Status of the Plan Plan assets less than benefit obligation $ 3 $ (34) $ (52) $ (82) $ (12) $ (12) (1) As a result of filing the Chapter 11 Cases, as disclosed in Note 1, "Background," participants of the Supplemental Plans were no longer entitled to benefit payments as of December 31, 2020 and were considered general creditors of the Company. As such, the Company classified $24 million of its U.S. pension benefit obligation as liabilities subject to compromise in the accompanying consolidated balance sheet as of December 31, 2020. |
Schedule of Defined Benefit Plan, Amounts Included in Financial Statements and Assumptions Used | Pension Benefits Postretirement U.S. Non-U.S. Benefits (U.S.) ($ in millions) 2021 2020 2021 2020 2021 2020 Amounts recognized in balance sheets: Prepaid expenses and other assets $ 3 $ — $ 30 $ 14 $ — $ — Accrued liabilities — (34) (82) (96) (12) (12) Net obligation recognized in the balance sheets $ 3 $ (34) $ (52) $ (82) $ (12) $ (12) Prior service credit $ — $ — $ (2) $ (2) $ — $ — Net gain (loss) (28) (47) (72) (93) — (1) Accumulated other comprehensive income (loss) (28) (47) (74) (95) — (1) Funded/(Unfunded) accrued pension or postretirement benefit 31 13 22 13 (12) (11) Net obligation recognized in the balance sheets $ 3 $ (34) $ (52) $ (82) $ (12) $ (12) Total recognized in other comprehensive (income) loss $ (20) $ (26) $ (21) $ 23 $ (1) $ 1 Total recognized in net periodic benefit cost and other comprehensive (income) loss $ (14) $ (20) $ (20) $ 25 $ (1) $ 1 Accumulated Benefit Obligation as of December 31 (1) $ 465 $ 522 $ 306 $ 338 N/A N/A Weighted-average assumptions as of December 31 Discount rate 2.7 % 2.3 % 1.7 % 1.4 % 2.2 % 2.3 % Expected return on assets 4.5 % 4.5 % 3.0 % 3.0 % N/A N/A Average rate of increase in compensation 4.3 % 4.3 % 2.1 % 2.1 % N/A N/A Interest crediting rate 3.8 % 3.8 % N/A N/A N/A N/A Initial health care cost trend rate N/A N/A N/A N/A 5.6 % 5.5 % Ultimate health care cost trend rate N/A N/A N/A N/A 4.0 % 4.5 % Number of years to ultimate trend rate N/A N/A N/A N/A 25 18 N/A - Not applicable (1) As a result of filing of the Chapter 11 Cases, as disclosed in Note 1, "Background," participants of the Supplemental Plans were no longer entitled to benefit payments as of December 31, 2020 and were considered general creditors of the Company. As such, the Company classified $24 million of its U.S. pension benefit obligation as liabilities subject to compromise in the accompanying consolidated balance sheet as of December 31, 2020. |
Schedule of Net Benefit Costs | The following table sets forth the net periodic pension and postretirement (including health care, life insurance and auto) expense charged to net income (loss). The components of net periodic pension expense (benefit), other than service cost, were included in other (income) expense, net in the accompanying consolidated statements of operations. Pension Benefits Postretirement U.S. Non-U.S. Years Ended December 31, ($ in millions) 2021 2020 2019 2021 2020 2019 2021 2020 2019 Components of Net Periodic Pension and Postretirement Expense (Benefit) Service cost $ — $ — $ — $ 1 $ 1 $ 1 $ — $ — $ — Interest cost 12 15 21 4 5 6 1 — — Expected return on plan assets (18) (20) (22) (7) (7) (9) — — — Net amortizations — 2 6 2 1 1 — — — Settlement loss 12 9 5 1 2 — — — — Net pension and postretirement expense (benefit) $ 6 $ 6 $ 10 $ 1 $ 2 $ (1) $ 1 $ — $ — Weighted-average discount rate for expense (January 1) 2.2 % 3.1 % 4.2 % 1.4 % 1.9 % 2.7 % 1.9 % 3.2 % 4.2 % Weighted-average assumed long-term rate of return on assets (January 1) 4.5 % 4.8 % 6.3 % 3.0 % 3.2 % 4.8 % N/A N/A N/A Weighted-average interest crediting rate for expense 3.8 % 3.8 % 3.8 % N/A N/A N/A N/A N/A N/A Initial health care cost trend rate N/A N/A N/A N/A N/A N/A 5.5 % 5.8 % 6.1 % Ultimate health care cost trend rate (rate to which cost trend is expected to decline) N/A N/A N/A N/A N/A N/A 4.5 % 4.5 % 4.5 % Number of years to ultimate trend rate N/A N/A N/A N/A N/A N/A 25 18 19 N/A - Not applicable |
Schedule of Allocation of Plan Assets | The fair value measurements of the U.S. pension plan assets relate to common collective trusts and other pooled investment vehicles consisting of the following asset categories: (In millions) December 31, 2021 December 31, 2020 Asset Category Level 1 Level 2 Measured at NAV (1) Level 1 Level 2 Measured at NAV (1) Cash $ 5 $ — $ — $ 6 $ — $ — Short Term Investments — 27 — — 28 — Equity Funds (2) : U.S. Large Cap — 59 — — 66 — U.S. Small Cap — 7 — — 11 — International Large Cap — 28 — — 36 — International Small Cap — 5 — — 7 — International Emerging Markets — 6 6 — 6 9 Fixed Income Securities: U.S. Treasuries — 24 — — 18 — Corporate Bonds — 247 — — 245 — Government Bonds — 12 — — 9 — Municipal Bonds — 10 — — 10 — Derivatives - Interest Rate 3 2 — 3 — — Non-Investment Grade Fixed Income (2) — 27 — — 34 — Total fair value of pension plan assets $ 8 $ 454 $ 6 $ 9 $ 470 $ 9 (1) Includes certain investments where the fair value measurement utilizes the net asset value ("NAV") and as such, are not classified in the fair value levels above. (2) The Level 2 investments relate to investment funds that publish daily NAV per unit. The daily NAV is available to participants in the funds and redemptions can be made daily at the current NAV. The fair value and units are determined and published, and are the basis for current transactions. The investments are not eligible for the NAV practical expedient. However, they are measured at the published NAV because the quoted NAV per unit represents the price at which the investment would be sold in a transaction between independent market participants. (In millions) December 31, 2021 December 31, 2020 Asset Category Level 1 Level 2 Measured at NAV (1) Level 1 Level 2 Measured at NAV (1) Actively Managed Multi-Asset Funds: Diversified Growth Funds (2) $ — $ 37 $ — $ — $ 39 $ — Multi Asset Credit — — 38 — — 37 Passive Equity Funds: U.K. Equities (2) — 12 — — 12 — Overseas Equities (2) — 14 — — 14 — Passive Bond Funds: Corporate Bonds — 27 — — 27 — Liability Driven Investments (2) — 96 — — 98 — Liquidity Fund 24 — — 24 — — Total fair value of pension plan assets $ 24 $ 186 $ 38 $ 24 $ 190 $ 37 (1) Includes certain investments where the fair value measurement utilizes NAV and as such, are not classified in the fair value levels above. (2) The Level 2 investments relate to investment funds that publish daily NAV per unit. The daily NAV is available to participants in the funds and redemptions can be made daily at the current NAV. The fair value and units are determined and published, and are the basis for current transactions. The investments are not eligible for the NAV practical expedient. However, they are measured at the published NAV because the quoted NAV per unit represents the price at which the investment would be sold in a transaction between independent market participants. |
Schedule of Expected Benefit Payments | The following table presents estimated future benefit payments: (In millions) Pension Benefits Postretirement 2022 $ 33 $ 3 2023 33 1 2024 35 1 2025 36 1 2026 39 1 2027 to 2031 206 3 $ 382 $ 10 |
Schedule of Multiemployer Plans | The Company's participation in multiemployer plans is outlined in the table below. For plans that are not individually significant to the Company, the total amount of contributions is presented in the aggregate. EIN /Pension Pension FIP / (1) Contributions by Surcharge Imposed Expiration Pension Fund 2021 2020 2021 2020 2019 Western Conference of Teamsters 91-6145047 Green Green N/A $ 4 $ 5 $ 8 N/A 2/28/2022 Other Plans 1 2 4 Total Contributions $ 5 $ 7 $ 12 N/A Not applicable (1) Indicates whether a Funding Improvement Plan, as required under the Code to be adopted by plans in the “yellow” zone, or a Rehabilitation Plan, as required under the Code to be adopted by plans in the “red” zone, is pending or has been implemented as of the end of the plan year that ended in 2021. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
2021 Omnibus Incentive Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Valuation Assumptions | The value of each stock option award is estimated on the grant date using a Black-Scholes option valuation model that incorporates the assumptions noted in the following table. The Company calculates the expected volatility based on the historical movement of its stock price. Grants Assumption 2021 Expected volatility 75 % Expected dividend yield — % Expected term (years) 6 Risk-free interest rate 1.19 % Weighted-average grant date fair value $ 17.12 |
Summary of Stock Option Activity | A summary of stock option activity under the 2021 Omnibus Plan as of December 31, 2021 is presented below: Options Shares Weighted Weighted- Aggregate Intrinsic Outstanding as of January 1, 2021 — $ — — $ — Granted 3,682,215 26.17 — — Exercised — — — — Forfeited or Expired (3,360) 26.17 — — Outstanding as of December 31, 2021 3,678,855 26.17 9.9 — Exercisable as of December 31, 2021 — — — — Non-vested as of December 31, 2021 3,678,855 |
Summary of RSU Activity | A summary of RSU activity as of and for the year ended December 31, 2021 under the 2021 Omnibus Plan is presented below: Shares Weighted- Aggregate Intrinsic Outstanding as of January 1, 2021 — $ — $ — Granted 1,727,406 26.17 — Vested — — — Forfeited or Expired (1,120) 26.17 — Outstanding as of December 31, 2021 1,726,286 26.17 43 |
Schedule of Additional RSU Activity | Additional information pertaining to RSU activity under the 2021 Omnibus Plan was as follows: Years Ended December 31, 2021 Total fair value of awards that vested (in millions) $ — Weighted-average grant-date fair value of awards 26.17 |
2016 Omnibus Incentive Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Valuation Assumptions | The Company calculated the expected volatility based on the historical movement of its stock price. Grants Assumption 2021 (1) 2020 (1) 2019 (2) Expected volatility — % — % 68.5 % Expected dividend yield — % — % — % Expected term (years) 0 0 7 Risk-free interest rate — % — % 1.93 % Weighted-average grant date fair value $ — $ — $ 9.19 (1) There were no options approved to be granted by the Compensation Committee in 2021 or 2020. (2) Options granted in 2019 were solely related to the incremental grants awarded as part of the 2019 Rights Offering, as disclosed in Note 16, "Equity and Mezzanine Equity – Hertz Global." |
Summary of Stock Option Activity | A summary of stock option activity under the 2016 Omnibus Plan as of December 31, 2021 is presented below: Options Shares Weighted Weighted- Aggregate Intrinsic Outstanding as of January 1, 2021 99,038 $ 34.76 2.3 $ — Granted — — — — Exercised — — — — Forfeited or Expired (1) (99,038) 34.76 — — Outstanding as of December 31, 2021 — — — — Exercisable as of December 31, 2021 — — — — (1) Includes all remaining outstanding stock options that were deemed to be cancelled on the Effective Date. |
Schedule of Additional RSU Activity | Additional information pertaining to RSU activity under the 2016 Omnibus Plan is as follows: Years Ended December 31, 2021 2020 2019 Total fair value of awards that vested (In millions) $ — $ 8 $ 12 Weighted-average grant date fair value of awards — 12.18 18.66 |
Summary of the Total Compensation Expense and Associated Recognized Income Tax Benefits | A summary of the total compensation expense and associated income tax benefits recognized for the 2016 Omnibus Plan, including the cost of stock options, RSUs, PSUs and PSAs is as follows: Years Ended December 31, (In millions) 2021 2020 2019 Compensation expense (credit) $ 3 $ (2) $ 18 Income tax provision (benefit) (1) — (2) Total $ 2 $ (2) $ 16 |
Summary of Non-Vested Stock Option Activity | A summary of non-vested stock option activity under the 2016 Omnibus Plan as of December 31, 2021 is presented below: Non-vested Weighted- Weighted-Average Non-vested as of January 1, 2021 23,249 $ 18.07 $ 9.06 Granted — — — Vested — — — Forfeited or expired (1) (23,249) 18.07 9.06 Non-vested as of December 31, 2021 — — — (1) Includes all outstanding non-vested stock options that were deemed to be cancelled on the Effective Date. |
Schedule of Additional Stock Option Activity | Additional information pertaining to stock option activity under the 2016 Omnibus Plan is as follows: Years Ended December 31, (In millions) 2021 2020 2019 Aggregate intrinsic value of stock options exercised $ — $ — $ — Cash received from the exercise of stock options — — — Fair value of options that vested — — 5 Tax benefit realized on exercise of stock options — — — |
Summary of PSU, PSA, and RSU Activity | A summary of the PSU and PSA activity as of December 31, 2021 under the 2016 Omnibus Plan is presented below: Shares Weighted- Aggregate Intrinsic Outstanding as of January 1, 2021 1,813,305 $ 16.47 $ 2 Granted — — — Vested — — — Forfeited or Expired (1) (1,813,305) 16.47 — Outstanding as of December 31, 2021 — — — (1) Included all outstanding PSUs and PSAs under the 2016 Omnibus Plan that were deemed to be cancelled on the Effective Date. A summary of RSU activity as of and for the year ended December 31, 2021 under the 2016 Omnibus Plan is presented below: Shares Weighted- Aggregate Intrinsic Outstanding as of January 1, 2021 782,056 $ 15.11 $ 1 Granted — — — Vested — — — Forfeited or Expired (1) (782,056) 15.11 — Outstanding as of December 31, 2021 — — — (1) Included all outstanding RSUs under the 2016 Omnibus Plan that were deemed to be cancelled on the Effective Date. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Operating Lease, Lease Income | The following table summarizes the amount of operating lease income and other income included in total revenues in the accompanying consolidated statements of operations for the years ended December 31, 2021, 2020 and 2019: (In millions) 2021 2020 2019 Operating lease income from vehicle rentals $ 6,885 $ 4,320 $ 8,579 Operating lease income from fleet leasing 149 639 674 Variable operating lease income 131 30 164 Revenue accounted for under Topic 842 7,165 4,989 9,417 Revenue accounted for under Topic 606 171 269 362 Total revenues $ 7,336 $ 5,258 $ 9,779 |
Operating Lease Costs | The following table summarizes the amount of lease costs incurred by the Company for the years ended December 31, 2021, 2020 and 2019: Years ended December 31, (In millions) 2021 2020 2019 Minimum fixed lease costs: Short-term lease costs $ 171 $ 142 $ 130 Operating lease costs 449 527 545 Total 620 669 $ 675 Variable lease costs 165 23 326 Total lease costs $ 785 $ 692 $ 1,001 The following summarizes the weighted-average remaining lease term and weighted-average discount rate for the Company's operating leases as a lessee as of December 31, 2021: Weighted-average remaining lease term (in years) 11.8 Weighted-average discount rate 10.3 % |
Lessee, Operating Lease, Liability, Maturity | The following table summarizes the Company's minimum fixed lease obligations under existing agreements as a lessee, excluding variable concession obligations in excess of minimum annual guarantees and short-term leases, as of December 31, 2021: (In millions) 2022 $ 390 2023 341 2024 275 2025 212 2026 165 After 2026 1,153 Total lease payments 2,536 Interest (1,026) Operating lease liabilities as of December 31, 2021 $ 1,510 |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | Restructuring charges under these programs are as follows: Years ended December 31, (In millions) 2021 2020 By Type: Termination benefits $ 27 $ 37 Lease and contract terminations 3 $ — Facility closures 2 — Total $ 32 $ 37 Years ended December 31, (In millions) 2021 2020 By Caption: Direct vehicle and operating $ 16 $ 25 Selling, general and administrative 16 12 Total $ 32 $ 37 Years ended December 31, (In millions) 2021 2020 By Segment: Americas RAC segment $ — $ 34 International RAC segment 32 — Corporate operations — 3 Total $ 32 $ 37 The tables above do not include pension-related settlement charges incurred during the year ended December 31, 2020. See Note 7, "Employee Retirement Benefits." The following table summarizes the activity affecting the restructuring accrual, which is recorded in accrued liabilities or, for the year ended December 31, 2020, reclassified to liabilities subject to compromise in the accompanying consolidated balance sheet. (In millions) Termination Other Total Balance as of December 31, 2019 $ 1 $ — $ 1 Charges incurred 37 — 37 Cash payments (29) — (29) Classified to liabilities subject to compromise (1) (7) — (7) Other (2) — (2) Balance as of December 31, 2020 — — — Charges incurred 27 5 32 Cash payments (32) — (32) Other non-cash reductions — (3) (3) Reclassified from liabilities subject to compromise (1) 7 — 7 Balance as of December 31, 2021 $ 2 $ 2 $ 4 (1) As a result of filing the Chapter 11 Cases, the Company classified $7 million of restructuring charges to liabilities subject to compromise in the accompanying consolidated balance sheet as of December 31, 2020. On the Effective Date, in connection with the Plan of Reorganization, the Company reclassified $7 million of accrued and unpaid restructuring charges from liabilities subject to compromise. See Note 20, "Liabilities Subject to Compromise." |
Income Tax (Provision) Benefit
Income Tax (Provision) Benefit (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Before Income Taxes | The components of income (loss) before income taxes for the Company's domestic and foreign operations are as follows: Hertz Global As of December 31, (In millions) 2021 2020 2019 Domestic $ 710 $ (1,692) $ 28 Foreign (27) (360) (15) Total income (loss) before income taxes $ 683 $ (2,052) $ 13 Hertz As of December 31, (In millions) 2021 2020 2019 Domestic $ 1,501 $ (1,823) $ 35 Foreign (27) (360) (15) Total income (loss) before income taxes $ 1,474 $ (2,183) $ 20 |
Schedule of Total Provision for Taxes on Income | The total income tax provision (benefit) consists of the following: Hertz Global and Hertz As of December 31, (In millions) 2021 2020 2019 Current: Federal $ — $ — $ — Foreign 24 18 20 State and local 21 4 16 Total current 45 22 36 Deferred: Federal 252 (356) 1 Foreign 19 35 (1) State and local 2 (30) 27 Total deferred 273 (351) 27 Total provision (benefit) - Hertz Global 318 (329) 63 Federal deferred tax (provision) benefit applicable to Hertz Holdings — 1 2 Total provision (benefit) - Hertz $ 318 $ (328) $ 65 |
Schedule of Principal Items of the U.S. and Foreign Net Deferred Tax Assets and Liabilities | The principal items of the U.S. and foreign net deferred tax assets and liabilities are as follows: Hertz Global and Hertz As of December 31, (In millions) 2021 2020 Deferred tax assets: Employee benefit plans $ 14 $ 44 Net operating loss carry forwards 1,321 825 Capital loss carryforwards 167 3 Federal and state tax credit carry forwards 64 55 Accrued and prepaid expenses 195 124 Operating lease liabilities 390 390 Total deferred tax assets 2,151 1,441 Less: valuation allowance (690) (651) Total net deferred tax assets 1,461 790 Deferred tax liabilities: Depreciation on tangible assets (1,342) (380) Intangible assets (711) (723) Operating lease right-of-use assets (408) (406) Total deferred tax liabilities (2,461) (1,509) Net deferred tax liability - Hertz Global (1,000) (719) Deferred tax asset - net operating loss applicable to Hertz Holdings (3) (5) Net deferred tax liability - Hertz $ (1,003) $ (724) |
Schedule of Significant Items in the Reconciliation of the Statutory and Effective Income Tax Rates | The significant items in the reconciliation of the statutory and effective income tax rates consists of the following items in the table below. Percentages are calculated from the underlying numbers in thousands, and as a result, may not agree to the amount when calculated in millions. Hertz Global and Hertz Years Ended December 31, 2021 2020 2019 Statutory federal tax rate 21 % 21 % 21 % State and local income taxes, net of federal effect 7 5 (102) Change in state rates, net of federal effect 2 1 (17) Foreign tax rate differential — — (31) Change in foreign statutory rates (2) — 15 Federal and foreign permanent differences 1 — (3) Tax credits (1) — (75) Withholding taxes 1 — 62 Valuation allowance 11 (11) 591 Change in fair value of public warrants 22 — — Non-deductible bankruptcy expenses 15 — — European reorganization (46) — — Uncertain tax positions 12 — 29 U.S. tax on foreign earnings 2 — — Stock option shortfalls — — 7 Other 2 — 3 Effective tax rate - Hertz Global 47 16 500 Hertz Holdings exclusive items (25) (1) (174) Effective tax rate - Hertz 22 % 15 % 326 % |
Schedule of a Reconciliation of the Beginning and Ending Amounts of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: Hertz Global and Hertz Years Ended December 31, (In millions) 2021 2020 2019 Balance as of January 1 $ 53 $ 48 $ 49 Increase (decrease) attributable to tax positions taken during prior periods 65 5 5 Increase (decrease) attributable to tax positions taken during the current year 19 1 1 Decrease attributable to settlements with taxing authorities (31) (1) (7) Balance as of December 31 $ 106 $ 53 $ 48 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Components of Debt | The Company's debt, including its available credit facilities, consists of the following ($ in millions) as of December 31, 2021 and 2020. The table and disclosures below exclude debt associated with Donlen that was classified as held for sale as of December 31, 2020. See Note 3, "Divestitures," for additional information. Facility Weighted-Average Interest Rate as of December 31, 2021 Fixed or Maturity December 31, December 31, Non-Vehicle Debt Term B Loan 3.75% Floating 6/2028 $ 1,294 $ — Term C Loan 3.75% Floating 6/2028 245 — Senior Notes Due 2026 4.63% Fixed 12/2026 500 — Senior Notes Due 2029 5.00% Fixed 12/2029 1,000 — First Lien RCF N/A Floating 6/2026 — — Other Non-Vehicle Debt (1) 8.49% Fixed Various 16 18 Senior Secured Superpriority Debtor-in-Possession Credit Agreement N/A N/A N/A — 250 Unamortized Debt Issuance Costs and Net (Discount) Premium (69) (25) Total Non-Vehicle Debt Not Subject to Compromise 2,986 243 Non-Vehicle Debt Subject to Compromise (2) Senior Term Loan N/A N/A N/A — 656 Senior RCF N/A N/A N/A — 615 Senior Notes (2) N/A N/A N/A — 2,700 Senior Second Priority Secured Notes N/A N/A N/A — 350 Promissory Notes N/A N/A N/A — 27 Alternative Letter of Credit Facility (3) N/A N/A N/A — 114 Senior RCF Letter of Credit Facility N/A N/A N/A — 17 Unamortized Debt Issuance Costs and Net (Discount) Premium — (36) Total Non-Vehicle Debt Subject to Compromise — 4,443 Vehicle Debt HVF III U.S. ABS Program HVF III U.S. Vehicle Variable Funding Notes HVF III Series 2021-A Class A (4) 1.62% Floating 6/2023 2,813 — Facility Weighted-Average Interest Rate as of December 31, 2021 Fixed or Maturity December 31, December 31, HVF III Series 2021-A Class B (4) 3.65% Fixed 6/2023 188 — 3,001 — HVF III U.S. Vehicle Medium Term Notes HVF III Series 2021-1 (4) 1.66% Fixed 12/2024 2,000 — HVF III Series 2021-2 (4) 2.12% Fixed 12/2026 2,000 — 4,000 — HVF II U.S. ABS Program HVF II U.S. Vehicle Variable Funding Notes HVF II Series 2013-A (5) N/A N/A N/A — 1,940 — 1,940 HVF II U.S. Vehicle Medium Term Notes HVF II Series 2015-3 N/A N/A N/A — 163 HVF II Series 2016-2 N/A N/A N/A — 263 HVF II Series 2016-4 N/A N/A N/A — 187 HVF II Series 2017-1 N/A N/A N/A — 199 HVF II Series 2017-2 N/A N/A N/A — 164 HVF II Series 2018-1 N/A N/A N/A — 468 HVF II Series 2018-2 N/A N/A N/A — 94 HVF II Series 2018-3 N/A N/A N/A — 95 HVF II Series 2019-1 N/A N/A N/A — 330 HVF II Series 2019-2 N/A N/A N/A — 354 HVF II Series 2019-3 N/A N/A N/A — 352 — 2,669 Vehicle Debt - Other European Vehicle Notes (6) N/A N/A N/A — 888 European ABS (4) 1.80% Floating 10/2023 395 263 Hertz Canadian Securitization (4) 2.49% Floating 1/2023 191 53 Australian Securitization (4) 1.66% Floating 4/2022 128 97 New Zealand RCF 3.49% Floating 6/2022 39 35 U.K. Financing Facility 3.68% Floating 1/2022-12/2024 98 105 U.K. Toyota Financing Facility 2.20% Floating 2/2022-2/2023 9 — Other Vehicle Debt 2.89% Floating 1/2022-12/2024 93 37 953 1,478 Unamortized Debt Issuance Costs and Net (Discount) Premium (33) (63) Total Vehicle Debt Not Subject to Compromise 7,921 6,024 Total Debt Not Subject to Compromise $ 10,907 $ 6,267 N/A - Not applicable (1) Other non-vehicle debt is primarily comprised of $12 million in capital lease obligations (2) Reference to the "Senior Notes" includes the series of Hertz's unsecured senior notes set forth in the table below which were included in liabilities subject to compromise in the accompanying consolidated balance sheet as of December 31, 2020. On the Effective Date, in accordance with the Plan of Reorganization, the Senior Notes were repaid in full and terminated. On July 1, 2021, Wells Fargo Bank, National Association, as indenture trustee for the Senior Notes, filed a complaint against Hertz and certain of its subsidiaries requesting declaratory judgement that additional amounts are owed with respect to certain premiums and post-petition interest with respect to the Senior Notes. Hertz disputes that any such amounts are owed and on August 2, 2021 filed a motion to dismiss the complaint. On December 23, 2021, the Company's motion to dismiss was granted by the Bankruptcy Court. See Note 14, "Contingencies and Off-Balance Sheet Commitments," for additional information. (In millions) Outstanding Principal Senior Notes December 31, 2021 December 31, 2020 6.250% Senior Notes due October 2022 $ — $ 500 5.500% Senior Notes due October 2024 — 800 7.125% Senior Notes due August 2026 — 500 6.000% Senior Notes due January 2028 — 900 $ — $ 2,700 (3) Includes default interest as of December 31, 2020. (4) 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 originally 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. (5) Includes default interest as of December 31, 2020, which was comprised of an increase in the contractual spread. (6) 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 ("Hertz Netherlands"), unsecured senior notes (converted from Euros to U.S. Dollars at a rate of 1.22 to 1 as of December 31, 2020) set forth in the table below. On the Effective Date, in accordance with the Plan of Reorganization, the European Vehicle Notes were repaid in full and cancelled. (In millions) Outstanding Principal European Vehicle Notes December 31, 2021 December 31, 2020 4.125% Senior Notes due October 2021 $ — $ 276 5.500% Senior Notes due March 2023 — 612 $ — $ 888 The fair value of the debt facilities 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 (i.e. Level 2 inputs). December 31, 2021 December 31, 2020 (In millions) Nominal Unpaid Principal Balance Aggregate Fair Value Nominal Unpaid Principal Balance Aggregate Fair Value Non-Vehicle Debt (1) $ 3,055 $ 3,065 $ 4,747 $ 3,382 Vehicle Debt 7,954 7,908 6,087 6,021 Total $ 11,009 $ 10,973 $ 10,834 $ 9,403 (1) Includes Non-Vehicle Debt included in liabilities subject to compromise in the accompanying consolidated balance sheet as of December 31, 2020. See Note 6, "Debt." |
Company's Cash Equivalents and Investments | The following table summarizes the Company's cash equivalents, restricted cash equivalents and Public Warrants that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy as follows: December 31, 2021 December 31, 2020 (In millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Cash equivalents and restricted cash equivalents $ 1,678 $ — $ — $ 1,678 $ 723 $ — $ — $ 723 Liabilities: Public warrants $ 1,324 $ — $ — $ 1,324 $ — $ — $ — $ — |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accumulated Other Comprehensive Income [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Changes in the accumulated other comprehensive income (loss) balance by component (net of tax) is as follows: (In millions) Pension and Other Post-Employment Benefits Foreign Currency Items Unrealized Losses from Currency Translation Adjustments on Terminated Net Investment Hedges Accumulated Other Comprehensive Income (Loss) Balance as of January 1, 2021 $ (122) $ (71) $ (19) $ (212) Other comprehensive income (loss) before reclassification 22 (36) — (14) Amounts reclassified from accumulated other comprehensive income (loss) 12 — — 12 Balance as of December 31, 2021 $ (88) $ (107) $ (19) $ (214) (In millions) Pension and Other Post-Employment Benefits Foreign Currency Items Unrealized Losses from Currency Translation Adjustments on Terminated Net Investment Hedges Accumulated Other Comprehensive Income (Loss) Balance as of January 1, 2020 $ (118) $ (52) $ (19) $ (189) Other comprehensive income (loss) before reclassification (15) (19) — (34) Amounts reclassified from accumulated other comprehensive income (loss) 11 — — 11 Balance as of December 31, 2020 $ (122) $ (71) $ (19) $ (212) |
Earnings (Loss) Per Common Sh_2
Earnings (Loss) Per Common Share – Hertz Global (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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 common share: Years Ended December 31, (In millions, except per share data) 2021 2020 2019 Numerator: Net income (loss) attributable to Hertz Global $ 366 $ (1,714) $ (58) Series A Preferred Stock deemed dividends (1) (450) — — Net income (loss) available to Hertz Global common stockholders $ (84) $ (1,714) $ (58) Denominator: Basic weighted-average common shares outstanding 315 150 84 2019 Rights Offering adjustment (2) — — 33 Diluted weighted-average common shares outstanding 315 150 117 Antidilutive Public Warrants 14 — — Antidilutive stock options, RSUs, PSUs and PSAs 1 2 2 Total antidilutive 15 2 2 Earnings (loss) per common share: Basic $ (0.27) $ (11.44) $ (0.49) Diluted $ (0.27) $ (11.44) $ (0.49) (1) Reflects the difference between the carrying value of the Series A Preferred Stock at expiration of the Tender Offer and the redemption value paid by Hertz Global, including approximately $7 million in certain fees. (2) Reflects the impact of the 2019 Rights Offering subscription period and the weighted-average impact of the issuance of 57,915,055 shares from the 2019 Rights Offering on July 18, 2019. Under the Plan of Reorganization approved by the Bankruptcy Court, the 2021 Rights Offering subscription was made available to Eligible Existing Stockholders on a pro rata basis to their existing common stock interests; therefore earnings (loss) per common share have not been retrospectively adjusted for reporting periods prior to the Effective Date for the 2021 Rights Offering. |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following tables provide significant statement of operations and balance sheet information by reportable segment for each of Hertz Global and Hertz, as well as Adjusted EBITDA, the measure used to determine segment profitability. Years Ended December 31, (In millions) 2021 2020 2019 Revenues Americas RAC $ 6,215 $ 3,756 $ 7,208 International RAC 985 872 1,899 Total reportable segments 7,200 4,628 9,107 All other operations (1) 136 630 672 Total Hertz Global and Hertz $ 7,336 $ 5,258 $ 9,779 Depreciation of revenue earning vehicles and lease charges Americas RAC $ 343 $ 1,352 $ 1,706 International RAC 154 243 388 Total reportable segments 497 1,595 2,094 All other operations (1)(2) — 435 469 Total Hertz Global and Hertz $ 497 $ 2,030 $ 2,563 Depreciation and amortization, non-vehicle assets Americas RAC $ 166 $ 182 $ 159 International RAC 16 19 20 Total reportable segments 182 201 179 All other operations (1) 2 10 10 Corporate 12 14 14 Total Hertz Global and Hertz $ 196 $ 225 $ 203 Interest expense, net Americas RAC $ 198 $ 259 $ 166 International RAC 62 80 84 Total reportable segments 260 339 250 All other operations (1) 13 40 31 Corporate 196 229 524 Total Hertz Global 469 608 805 Hertz interest income from loan to Hertz Global — (2) (7) Total - Hertz $ 469 $ 606 $ 798 Adjusted EBITDA Americas RAC $ 2,173 $ (810) $ 512 International RAC 90 (229) 115 Total reportable segments 2,263 (1,039) 627 All other operations (1) 13 93 100 Corporate (146) (49) (78) Total Hertz Global and Hertz $ 2,130 $ (995) $ 649 As of December 31, (In millions) 2021 2020 Revenue earning vehicles, net Americas RAC $ 7,897 $ 5,120 International RAC 1,329 942 Total reportable segments 9,226 6,062 All other operations (1)(3) — 1,432 Total Hertz Global and Hertz $ 9,226 $ 7,494 Property and equipment, net Americas RAC $ 449 $ 490 International RAC 67 78 Total reportable segments 516 568 All other operations (1)(4) — 6 Corporate 92 98 Total Hertz Global and Hertz $ 608 $ 672 Total assets Americas RAC $ 14,352 $ 11,337 International RAC 2,978 2,661 Total reportable segments 17,330 13,998 All other operations (1)(5) — 1,818 Corporate 2,453 1,092 Total Hertz Global (6) 19,783 16,908 Corporate - Hertz (7) (3) (28) Total Hertz (6) $ 19,780 $ 16,880 (1) Substantially comprised of the Company's Donlen business, which was sold on March 30, 2021. (2) Depreciation for the Donlen business was suspended while classified as held for sale. See Note 3, "Divestitures." (3) Includes $1.4 billion of revenue earning vehicles, net classified as held for sale as of December 31, 2020 as disclosed in Note 3, "Divestitures." (4) Includes $6 million of property and equipment, net classified as held for sale as of December 31, 2020 as disclosed in Note 3, "Divestitures." (5) Includes $1.8 billion of assets classified as held for sale as of December 31, 2020 as disclosed in Note 3, "Divestitures." (6) The consolidated total assets of Hertz Global and Hertz as of December 31, 2021 and 2020 included total assets of VIEs of $734 million and $511 million, respectively, which can only be used to settle obligations of the VIEs. See "Pledges Related to Vehicle Financing" in Note 6, "Debt," and "Termination of 767 Auto Leasing Agreement" in Note 3, "Divestitures," for further information. (7) Excludes net proceeds from the ATM Program of $28 million as of December 31, 2020 as disclosed in Note 16, "Equity and Mezzanine Equity – Hertz Global." Years Ended December 31, (In millions) 2021 2020 2019 Revenue earning vehicles and non-vehicle capital assets Americas RAC: Expenditures $ (5,935) $ (4,059) $ (9,790) Proceeds from disposals 2,137 7,965 6,643 Net expenditures - Hertz Global and Hertz $ (3,798) $ 3,906 $ (3,147) International RAC: Expenditures $ (1,123) $ (930) $ (2,995) Proceeds from disposals 626 1,855 2,517 Net expenditures - Hertz Global and Hertz $ (497) $ 925 $ (478) All other operations: Expenditures $ (155) $ (615) $ (1,043) Proceeds from disposals 70 335 352 Net expenditures - Hertz Global and Hertz $ (85) $ (280) $ (691) Corporate: Expenditures $ (12) $ (36) $ (110) Proceeds from disposals 1 3 1 Net expenditures - Hertz Global and Hertz $ (11) $ (33) $ (109) The Company operates in the U.S. and in international countries. International operations are substantially in Europe. The operations within major geographic areas for each of Hertz Global and Hertz are summarized below: Years Ended December 31, (In millions) 2021 2020 2019 Revenues U.S. $ 6,186 $ 4,271 $ 7,596 International 1,150 987 2,183 Total Hertz Global and Hertz $ 7,336 $ 5,258 $ 9,779 As of December 31, (In millions) 2021 2020 Revenue earning vehicles, net U.S. $ 7,639 $ 4,974 International 1,587 1,088 Total Hertz Global and Hertz $ 9,226 $ 6,062 Property and equipment, net U.S. $ 527 $ 570 International 81 96 Total Hertz Global and Hertz $ 608 $ 666 As of December 31, (In millions) 2021 2020 Total assets U.S. (1) $ 16,174 $ 13,732 International (2) 3,609 3,176 Total Hertz Global 19,783 16,908 U.S. - Hertz (3) (28) Total Hertz $ 19,780 $ 16,880 (1) Includes $1.8 billion of assets classified as held for sale as of December 31, 2020 as disclosed in Note 3, "Divestitures." (2) Includes $48 million of assets classified as held for sale as of December 31, 2020 as disclosed in Note 3, "Divestitures." Reconciliations of Adjusted EBITDA by reportable segment to consolidated amounts are summarized below: Hertz Global Years Ended December 31, (In millions) 2021 2020 2019 Adjusted EBITDA: Americas RAC $ 2,173 $ (810) $ 512 International RAC 90 (229) 115 Total reportable segments 2,263 (1,039) 627 All other operations (1) 13 93 100 Corporate (2) (146) (49) (78) Total Hertz Global 2,130 (995) 649 Adjustments: Non-vehicle depreciation and amortization (196) (225) (203) Non-vehicle debt interest, net (3) (185) (153) (311) Vehicle debt-related charges (4) (72) (55) (38) Restructuring and restructuring related charges (5) (76) (64) (14) Technology-related intangible and other asset impairments (6) — (213) — Information technology and finance transformation costs (7) (12) (42) (114) Reorganization items, net (8) (677) (175) — Pre-reorganization charges and non-debtor financing charges (9) (42) (109) — Gain from the Donlen Sale (10) 400 — — Change in fair value of Public Warrants (11) (627) — — Other items (12) 40 (21) 44 Income (loss) before income taxes $ 683 $ (2,052) $ 13 Hertz Years Ended December 31, (In millions) 2021 2020 2019 Adjusted EBITDA: Americas RAC $ 2,173 $ (810) $ 512 International RAC 90 (229) 115 Total reportable segments 2,263 (1,039) 627 All other operations (1) 13 93 100 Corporate (2) (146) (49) (78) Total Hertz 2,130 (995) 649 Adjustments: Non-vehicle depreciation and amortization (196) (225) (203) Non-vehicle debt interest, net (3) (185) (151) (304) Vehicle debt-related charges (4) (72) (55) (38) Restructuring and restructuring related charges (5) (76) (64) (14) Technology-related intangible and other asset impairments (6) — (213) — Write-off of intercompany loan (13) — (133) — Information technology and finance transformation costs (7) (12) (42) (114) Reorganization items, net (8) (513) (175) — Pre-reorganization charges and non-debtor financing charges (9) (42) (109) — Gain from the Donlen Sale (10) 400 — — Other items (12) 40 (21) 44 Income (loss) before income taxes $ 1,474 $ (2,183) $ 20 (1) Substantially comprised of the Company's Donlen business, which was sold on March 30, 2021 as disclosed in Note 3, "Divestitures." (2) Represents other reconciling items primarily consisting of general corporate expenses as well as other business activities. (3) For 2021, includes $8 million of loss on extinguishment of debt associated with the payoff and termination of the HIL Credit Agreement recorded in the second quarter. See Note 6, "Debt," for further information. (4) Represents vehicle debt-related charges relating to the amortization of deferred financing costs and debt discounts and premiums. (5) Represents charges incurred under restructuring actions as defined in U.S. GAAP. See Note 10, "Restructuring," for further information. Also includes restructuring related charges such as incremental costs incurred directly supporting business transformation initiatives. (6) For 2020, represents a $193 million impairment of technology-related intangible assets and capitalized cloud computing implementations costs and a $20 million impairment of the Hertz tradename, as disclosed in Note 5, "Goodwill and Intangible Assets, Net." (7) 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. (8) Represents charges incurred associated with the filing of and the emergence from the Chapter 11 Cases, as disclosed in Note 21, "Reorganization Items, Net." (9) Represents charges incurred prior to the filing of the Chapter 11 Cases, as disclosed in Note 1, "Background," which were comprised of preparation charges for the reorganization, such as professional fees. Also, includes certain non-debtor financing and professional fee charges. (10) Represents the net gain from the sale of the Company's Donlen business on March 30, 2021 as disclosed in Note 3, "Divestitures." (11) Represents the change in fair value during the reporting period for the Company's outstanding Public Warrants. (12) Represents miscellaneous items, including non-cash stock-based compensation charges, and amounts attributable to noncontrolling interests. For 2021, includes $100 million associated with the suspension of depreciation during the first quarter for the Donlen business while classified as held for sale, partially offset by $17 million for certain professional fees, $14 million of charges related to the settlement of bankruptcy claims, charges for a multiemployer pension plan withdrawal liability and letter of credit fees. For 2020, also includes $16 million associated with the Donlen Asset Sale, partially offset by $18 million for losses associated with certain vehicle damages. For 2019, also includes a $30 million gain on marketable securities and a $39 million gain on the sale of non-vehicle capital assets. (13) For 2020, represents the write-off of the 2019 Master Loan between Hertz and Hertz Holdings, as disclosed in Note 15, "Related Party Transactions." |
Liabilities Subject to Compro_2
Liabilities Subject to Compromise (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Reorganizations [Abstract] | |
Schedule of Liabilities Subject To Compromise | The following table summarizes liabilities subject to compromise as of December 31, 2020: (In millions) December 31, 2020 Accounts payable $ 267 Accrued liabilities (1) 166 Accrued taxes, net 19 Accrued interest on debt subject to compromise 70 Debt subject to compromise (2) 4,443 Liabilities subject to compromise - Hertz Global 4,965 Due from affiliate - Hertz (3) 65 Liabilities subject to compromise - Hertz $ 5,030 (1) Included $24 million of U.S. pension benefit obligation reported as liabilities subject to compromise as of December 31, 2020. (2) See Note 6, "Debt," for details of Pre-petition, non-vehicle debt reported as liabilities subject to compromise as of December 31, 2020. (3) See Note 15, "Related Party Transactions," for details of a Pre-petition intercompany loan due to an affiliate reported as liabilities subject to compromise as of December 31, 2020. (In millions) Effective Date Reinstated on the Effective Date: Accounts payable $ 257 Accrued liabilities 99 Accrued taxes, net 14 Liabilities reinstated - Hertz Global 370 Stockholder's equity - Due to affiliate - Hertz (1) 65 Liabilities reinstated - Hertz $ 435 (1) See Note 15, "Related Party Transactions," for details of a Pre-petition intercompany loan due to an affiliate reported as liabilities subject to compromise as of December 31, 2020 that was settled via a non-cash distribution from Hertz to Hertz Holdings. |
Reorganization Items, Net (Tabl
Reorganization Items, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Reorganizations [Abstract] | |
Schedule of Reorganization Items, Net | The following tables summarize reorganization items, net: Hertz Global Years Ended December 31, (In millions) 2021 2020 Professional fees and other bankruptcy related costs $ 257 $ 175 Loss on extinguishment of debt (1) 191 — Backstop fee 164 — Breakup fee (2) 77 — Contract settlements 25 — Cancellation of share-based compensation grants (3) (10) — Net gain on settlement of liabilities subject to compromise (22) — Other, net (5) — Reorganization items, net $ 677 $ 175 Hertz Years Ended December 31, (In millions) 2021 2020 Professional fees and other bankruptcy related costs $ 257 $ 175 Loss on extinguishment of debt (1) 191 — Breakup fee (2) 77 — Contract settlements 25 — Cancellation of share-based compensation grants (3) (10) — Net gain on settlement of liabilities subject to compromise (22) — Other, net (5) — Reorganization items, net $ 513 $ 175 (1) Includes loss on extinguishment of debt resulting from the implementation of the Plan of Reorganization on the Effective Date. Primarily composed of write-offs of unamortized deferred loan origination costs and early termination fees associated with terminated debt agreements. See Note 6, "Debt," for further information. (2) Breakup fee paid to prior plan sponsors Centerbridge Partners, L.P., Warburg Pincus LLC, Dundon Capital Partners, LLC and certain of their respective affiliates and certain holders of the Senior Notes upon Emergence in accordance with an Equity Purchase and Commitment and Agreement entered into on April 3, 2021 which was subsequently terminated. (3) See Note 8, "Stock-Based Compensation," for further details. |
Background (Details)
Background (Details) $ / shares in Units, $ in Millions | Jun. 30, 2021USD ($)$ / sharesshares | Jun. 30, 2021EUR (€)shares | Jul. 18, 2019shares | May 31, 2021EUR (€) | Dec. 31, 2021$ / sharesshares | Sep. 30, 2021USD ($)$ / shares | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020shares | Dec. 31, 2019USD ($) | Nov. 23, 2021$ / shares | Jun. 15, 2021USD ($)shares |
Debt Instrument | |||||||||||
Cash proceeds from Plan of Reorganization | $ 7,500 | ||||||||||
Upfront discount and certain fees | 2.00% | ||||||||||
Proceeds from Rights Offering | $ 4 | $ 1,802 | $ 748 | ||||||||
Preferred stock issuance, net | $ 1,500 | $ 1,433 | |||||||||
Stock issuance, net (in shares) | shares | 57,915,055 | ||||||||||
Exercise price of warrants (in dollars per share) | $ / shares | $ 13.80 | $ 13.80 | |||||||||
Common stock, shares outstanding | shares | 471,102,462 | 449,782,424 | 449,782,424 | 156,206,478 | |||||||
Series A Preferred Stock | |||||||||||
Debt Instrument | |||||||||||
Shares repurchased and retired (in shares) | shares | 1,500,000 | ||||||||||
Share price (in dollars per share) | $ / shares | $ 1,250 | $ 1,250 | $ 1,250 | ||||||||
Common Stock | |||||||||||
Debt Instrument | |||||||||||
Proceeds from Rights Offering | $ 2 | ||||||||||
Stock issuance, net (in shares) | shares | 14,000,000 | ||||||||||
Common Stock | Existing Shareholders | |||||||||||
Debt Instrument | |||||||||||
Number of shares issued | shares | 14,133,024 | ||||||||||
Common Stock | Plan Sponsors | |||||||||||
Debt Instrument | |||||||||||
Number of shares issued | shares | 277,119,438 | ||||||||||
Common Stock | Eligible Investors | |||||||||||
Debt Instrument | |||||||||||
Subscriptions to purchase equity in Successor Company (in shares) | shares | 127,362,114 | ||||||||||
Common Stock | Backstop Parties | |||||||||||
Debt Instrument | |||||||||||
Number of shares issued | shares | 52,487,886 | ||||||||||
Plan of Reorganization | |||||||||||
Debt Instrument | |||||||||||
Exercise price of warrants (in dollars per share) | $ / shares | $ 13.80 | ||||||||||
Plan of Reorganization | Public warrants | |||||||||||
Debt Instrument | |||||||||||
Stock issuance, net (in shares) | shares | 89,049,029 | 89,049,029 | |||||||||
Revolving Credit Facility | First Lien RCF | |||||||||||
Debt Instrument | |||||||||||
Aggregate principal amount | $ 1,300 | ||||||||||
Revolving Credit Facility | Medium-term Notes | |||||||||||
Debt Instrument | |||||||||||
Long-term debt | 4,000 | ||||||||||
Term Loans | First Lien RCF | |||||||||||
Debt Instrument | |||||||||||
Long-term debt | 1,500 | ||||||||||
DIP Credit Agreement | |||||||||||
Debt Instrument | |||||||||||
Repayments of debt | 1,000 | ||||||||||
European Vehicle Notes | |||||||||||
Debt Instrument | |||||||||||
Repayments of debt | € | € 725,000,000 | ||||||||||
HIL Credit Agreement | |||||||||||
Debt Instrument | |||||||||||
Repayments of debt | € | € 257,000,000 | ||||||||||
HVF III Series 2021-A | |||||||||||
Debt Instrument | |||||||||||
Long-term debt | 6,800 | ||||||||||
HVF III Series 2021-A | Variable Funding Notes | |||||||||||
Debt Instrument | |||||||||||
Long-term debt | 2,800 | ||||||||||
Plan Sponsors | |||||||||||
Debt Instrument | |||||||||||
Purchase of common stock | $ 2,800 | ||||||||||
Eligible Investors | |||||||||||
Debt Instrument | |||||||||||
Pro rata cash received by existing equity holders (in usd per share) | $ / shares | $ 1.53 | ||||||||||
Eligible Investors | Common Stock | |||||||||||
Debt Instrument | |||||||||||
Purchase of common stock | $ 1,600 | ||||||||||
Pro rata share of Reorganized Company received in equity (percent) | 3.00% | ||||||||||
Purchase price (in usd per share) | $ / shares | $ 10 | $ 10 | |||||||||
Subscriptions to purchase equity in Successor Company (in shares) | shares | 127,362,114 | ||||||||||
Subscriptions to purchase equity in Successor Company | $ 1,300 | ||||||||||
Eligible Investors | Public warrants | |||||||||||
Debt Instrument | |||||||||||
Pro rata share of Reorganized Company received in equity (percent) | 18.00% | ||||||||||
Apollo | |||||||||||
Debt Instrument | |||||||||||
Purchase of preferred stock | $ 1,500 | ||||||||||
Apollo | Series A Preferred Stock | |||||||||||
Debt Instrument | |||||||||||
Preferred stock issuance, net (in shares) | shares | 1,500,000 | 1,500,000 | |||||||||
Backstop Parties | Common Stock | |||||||||||
Debt Instrument | |||||||||||
Subscriptions to purchase equity in Successor Company (in shares) | shares | 36,137,887 | ||||||||||
Subscriptions to purchase equity in Successor Company | $ 361 | ||||||||||
Backstop fee | $ 164 | ||||||||||
Backstop fee (in usd per share) | $ / shares | $ 10 |
Significant Accounting Polici_4
Significant Accounting Policies (Narrative) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021USD ($)unit | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Number of reporting units | unit | 2 | ||
Maturity period for highly liquid investments to be classified as cash and cash equivalents | 3 months | ||
Depreciation | $ 108 | $ 129 | $ 122 |
Advertising expense | $ 162 | $ 112 | $ 318 |
Vehicles | Minimum | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Holding period | 6 months | ||
Vehicles | Maximum | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Holding period | 36 months |
Significant Accounting Polici_5
Significant Accounting Policies (Property and Equipment, Including Useful Lives) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | ||
Less: accumulated depreciation | $ (702) | $ (1,372) |
Property and equipment, net | $ 608 | 666 |
Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 1 year | |
Finite-lived intangible assets, useful life | 2 years | |
Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 50 years | |
Finite-lived intangible assets, useful life | 20 years | |
Land, buildings and leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 971 | 1,277 |
Service vehicles, equipment and furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 339 | $ 761 |
Buildings | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 1 year | |
Buildings | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 50 years | |
Furniture and fixtures | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 1 year | |
Furniture and fixtures | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 5 years | |
Service cars and service equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 1 year | |
Service cars and service equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 25 years |
Divestitures (Details)
Divestitures (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Gain from sale of a business | $ 400 | $ 0 | $ 0 | |
Proceeds from divestiture of business | 871 | 0 | 0 | |
Receivables | 758 | 777 | ||
Gain on sale of non-vehicle capital assets | 8 | 24 | 39 | |
767 Auto Leasing, LLC | American Entertainment Properties Corp | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Payments of distributions to affiliates | (38) | (75) | ||
Master Motor Vehicle Lease and Management Agreement | 767 Auto Leasing, LLC | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Operating income or loss, percent | 25.00% | |||
Donlen Corporation | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Proceeds from divestiture of business | 891 | |||
Net book value assets sold | 543 | |||
Donlen Corporation | Prepaid expenses and other assets | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Receivables | $ 53 | |||
Other income (expense), net | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Marketable securities | 74 | |||
Other income (expense), net | Non-vehicle Capital Assets | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Gain on sale of non-vehicle capital assets | $ 20 | $ 39 |
Divestitures (Major Classes Of
Divestitures (Major Classes Of Assets and Liabilities Of Discontinued Operations) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
ASSETS | ||
Revenue earning vehicles, net | $ 238 | $ 37 |
Total assets held for sale | 0 | 1,811 |
LIABILITIES | ||
Total liabilities held for sale | 0 | 1,431 |
The Hertz Corporation | ||
ASSETS | ||
Revenue earning vehicles, net | 1,400 | |
Total assets held for sale | 0 | 1,811 |
LIABILITIES | ||
Total liabilities held for sale | $ 0 | 1,431 |
The Hertz Corporation | Donlen Corporation | ||
ASSETS | ||
Cash and cash equivalents | 3 | |
Restricted cash and cash equivalents | 68 | |
Receivables, net | 207 | |
Prepaid expenses and other assets | 28 | |
Revenue earning vehicles, net | 1,432 | |
Property and equipment, net | 6 | |
Operating lease right-of-use assets | 2 | |
Intangible assets, net | 29 | |
Goodwill | 36 | |
Total assets held for sale | 1,811 | |
LIABILITIES | ||
Accounts payable | 76 | |
Accrued liabilities | 19 | |
Accrued taxes, net | 3 | |
Vehicle debt | 1,327 | |
Operating lease liabilities | 6 | |
Total liabilities held for sale | $ 1,431 |
Revenue Earning Vehicles (Compo
Revenue Earning Vehicles (Components of Revenue Earning Vehicles) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Revenue from Contract with Customer [Abstract] | ||
Revenue earning vehicles | $ 10,506 | $ 7,492 |
Less accumulated depreciation | (1,518) | (1,467) |
Property subject to available for operating lease excluding assets held for sale | 8,988 | 6,025 |
Revenue earning vehicles held for sale, net | 238 | 37 |
Total revenue earning vehicles, net | $ 9,226 | $ 6,062 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets, Net (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2021 | |
Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Goodwill, discount rate | 13.00% | |
Percentage of fair value in excess of carrying amount | 25.00% | |
Intangible assets, discount rate | 13.00% | |
Indefinite-lived intangible assets, percentage of fair value in excess of carrying amount | 25.00% | |
Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Goodwill, discount rate | 13.50% | |
Intangible assets, discount rate | 13.50% | |
Americas RAC segment | ||
Finite-Lived Intangible Assets [Line Items] | ||
Impairment charge | $ 193 | |
Americas RAC segment | Technology related intangible assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Impairment charge | 124 | |
Americas RAC segment | Other assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Impairment charge | $ 69 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets, Net (Summary of Changes in Goodwill, by Segment) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill | ||
Balance at beginning of period, Goodwill | $ 1,265 | $ 1,265 |
Accumulated impairment losses at the beginning of the period | (220) | (218) |
Net goodwill, balance at the beginning of the period | 1,045 | 1,047 |
Goodwill disposal and other changes during the period | 0 | (2) |
Total | 0 | (2) |
Balance at end of period, Goodwill | 1,265 | 1,265 |
Accumulated impairment losses at the end of the period | (220) | (220) |
Net goodwill, balance at the end of the period | 1,045 | 1,045 |
The Hertz Corporation | ||
Goodwill | ||
Net goodwill, balance at the beginning of the period | 1,045 | |
Net goodwill, balance at the end of the period | 1,045 | 1,045 |
The Hertz Corporation | Donlen Corporation | ||
Goodwill | ||
Goodwill | 36 | |
Americas RAC segment | ||
Goodwill | ||
Balance at beginning of period, Goodwill | 1,029 | 1,029 |
Accumulated impairment losses at the beginning of the period | 0 | 0 |
Net goodwill, balance at the beginning of the period | 1,029 | 1,029 |
Goodwill disposal and other changes during the period | 0 | 0 |
Total | 0 | 0 |
Balance at end of period, Goodwill | 1,029 | 1,029 |
Accumulated impairment losses at the end of the period | 0 | 0 |
Net goodwill, balance at the end of the period | 1,029 | 1,029 |
International RAC segment | ||
Goodwill | ||
Balance at beginning of period, Goodwill | 236 | 236 |
Accumulated impairment losses at the beginning of the period | (220) | (218) |
Net goodwill, balance at the beginning of the period | 16 | 18 |
Goodwill disposal and other changes during the period | 0 | (2) |
Total | 0 | (2) |
Balance at end of period, Goodwill | 236 | 236 |
Accumulated impairment losses at the end of the period | (220) | (220) |
Net goodwill, balance at the end of the period | $ 16 | $ 16 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets, Net (Schedule of Components of Other Intangible Assets by Major Classes) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Amortizable intangible assets: | ||
Gross Carrying Amount | $ 1,084 | $ 1,080 |
Accumulated Amortization | (990) | (906) |
Net Carrying Value | 94 | 174 |
Indefinite-lived intangible assets: | ||
Carrying Amount | 2,818 | 2,818 |
Total Other intangible assets | ||
Gross Carrying Amount | 3,902 | 3,898 |
Accumulated Amortization | (990) | (906) |
Net Carrying Value | 2,912 | 2,992 |
Tradenames | ||
Indefinite-lived intangible assets: | ||
Carrying Amount | 2,794 | 2,794 |
Tradenames | Americas RAC segment | ||
Indefinite-lived intangible assets: | ||
Carrying Amount | 2,200 | 2,200 |
Tradenames | International RAC | ||
Indefinite-lived intangible assets: | ||
Carrying Amount | 600 | 600 |
Other | ||
Indefinite-lived intangible assets: | ||
Carrying Amount | 24 | 24 |
Customer-related | ||
Amortizable intangible assets: | ||
Gross Carrying Amount | 269 | 269 |
Accumulated Amortization | (269) | (269) |
Net Carrying Value | 0 | 0 |
Total Other intangible assets | ||
Accumulated Amortization | (269) | (269) |
Concession rights | ||
Amortizable intangible assets: | ||
Gross Carrying Amount | 408 | 408 |
Accumulated Amortization | (405) | (365) |
Net Carrying Value | 3 | 43 |
Total Other intangible assets | ||
Accumulated Amortization | (405) | (365) |
Technology-related intangibles | ||
Amortizable intangible assets: | ||
Gross Carrying Amount | 359 | 355 |
Accumulated Amortization | (271) | (228) |
Net Carrying Value | 88 | 127 |
Total Other intangible assets | ||
Accumulated Amortization | (271) | (228) |
Other | ||
Amortizable intangible assets: | ||
Gross Carrying Amount | 48 | 48 |
Accumulated Amortization | (45) | (44) |
Net Carrying Value | 3 | 4 |
Total Other intangible assets | ||
Accumulated Amortization | $ (45) | $ (44) |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets, Net (Amortization of Intangible Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of intangible assets | $ 88 | $ 96 | $ 81 |
Goodwill and Intangible Asset_7
Goodwill and Intangible Assets, Net (Schedule of Future Amortization Expense) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2022 | $ 41 | |
2023 | 24 | |
2024 | 17 | |
2025 | 6 | |
2026 | 2 | |
After 2026 | 4 | |
Total expected amortization expense | $ 94 | $ 174 |
Debt (Schedule of Debt) (Detail
Debt (Schedule of Debt) (Details) $ in Millions | Dec. 31, 2021USD ($) | Jul. 01, 2021 | Dec. 31, 2020USD ($) |
Debt Instrument | |||
Outstanding principal | $ 10,907 | $ 6,267 | |
Total Non-Vehicle Debt Subject to Compromise | 4,443 | ||
Debt | $ 10,907 | 6,267 | |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Debt | ||
Non-vehicle | |||
Debt Instrument | |||
Long-term debt | $ 2,986 | 243 | |
Unamortized debt issuance costs and net (discount) premium | 0 | (36) | |
Total Non-Vehicle Debt Subject to Compromise | 0 | 4,443 | |
Corporate Debt | Non-vehicle | |||
Debt Instrument | |||
Unamortized debt issuance costs and net (discount) premium | $ (69) | (25) | |
Term B Loan | Non-vehicle | |||
Debt Instrument | |||
Weighted average interest rate | 3.75% | ||
Outstanding principal | $ 1,294 | 0 | |
Debt | $ 1,294 | 0 | |
Term C Loan | Non-vehicle | |||
Debt Instrument | |||
Weighted average interest rate | 3.75% | ||
Outstanding principal | $ 245 | 0 | |
Debt | $ 245 | 0 | |
Senior Notes Due 2026 | Non-vehicle | |||
Debt Instrument | |||
Weighted average interest rate | 4.63% | ||
Outstanding principal | $ 500 | 0 | |
Debt | $ 500 | 0 | |
Senior Notes Due 2029 | Non-vehicle | |||
Debt Instrument | |||
Weighted average interest rate | 5.00% | ||
Outstanding principal | $ 1,000 | 0 | |
Debt | 1,000 | 0 | |
First Lien RCF | Non-vehicle | |||
Debt Instrument | |||
Outstanding principal | 0 | 0 | |
Debt | $ 0 | 0 | |
Other Debt | Non-vehicle | |||
Debt Instrument | |||
Weighted average interest rate | 8.49% | ||
Outstanding principal | $ 16 | 18 | |
Debt | 16 | 18 | |
Finance lease liability | 12 | ||
Senior Secured Superpriority Debtor-in-Possession Credit Agreement | Non-vehicle | |||
Debt Instrument | |||
Outstanding principal | 0 | 250 | |
Debt | 0 | 250 | |
Senior Term Loan | Non-vehicle | |||
Debt Instrument | |||
Liabilities subject to compromise | 0 | 656 | |
Senior RCF | Non-vehicle | |||
Debt Instrument | |||
Liabilities subject to compromise | 0 | 615 | |
Senior Notes | |||
Debt Instrument | |||
Outstanding principal | 0 | 2,700 | |
Debt | 0 | 2,700 | |
Senior Notes | Non-vehicle | |||
Debt Instrument | |||
Liabilities subject to compromise | 0 | 2,700 | |
Senior Second Priority Secured Notes | Non-vehicle | |||
Debt Instrument | |||
Liabilities subject to compromise | 0 | 350 | |
Promissory Notes | Non-vehicle | |||
Debt Instrument | |||
Liabilities subject to compromise | 0 | 27 | |
Alternative Letter of Credit Facility | Non-vehicle | |||
Debt Instrument | |||
Liabilities subject to compromise | 0 | 114 | |
Senior RCF Letter of Credit Facility | Non-vehicle | |||
Debt Instrument | |||
Liabilities subject to compromise | 0 | 17 | |
HVF III U.S. Vehicle Variable Funding Notes | Vehicle | |||
Debt Instrument | |||
Outstanding principal | 3,001 | 0 | |
Debt | $ 3,001 | 0 | |
HVF III Series 2021-A | Vehicle | |||
Debt Instrument | |||
Weighted average interest rate | 1.62% | ||
Outstanding principal | $ 2,813 | 0 | |
Debt | $ 2,813 | 0 | |
HVF III Series 2021-A Class B | Vehicle | |||
Debt Instrument | |||
Weighted average interest rate | 3.65% | ||
Outstanding principal | $ 188 | 0 | |
Debt | 188 | 0 | |
HVF III U.S. Vehicle Medium Term Notes | Vehicle | |||
Debt Instrument | |||
Outstanding principal | 4,000 | 0 | |
Debt | $ 4,000 | 0 | |
HVF III Series 2021-1 | Vehicle | |||
Debt Instrument | |||
Weighted average interest rate | 1.66% | ||
Outstanding principal | $ 2,000 | 0 | |
Debt | $ 2,000 | 0 | |
HVF III Series 2021-2 | Vehicle | |||
Debt Instrument | |||
Weighted average interest rate | 2.12% | ||
Outstanding principal | $ 2,000 | 0 | |
Debt | 2,000 | 0 | |
HVF II U.S. Vehicle Variable Funding Notes | Vehicle | |||
Debt Instrument | |||
Outstanding principal | 0 | 1,940 | |
Debt | 0 | 1,940 | |
HVF II Series 2013-A, Class A | Vehicle | |||
Debt Instrument | |||
Outstanding principal | 0 | 1,940 | |
Debt | 0 | 1,940 | |
HVF II U.S. Vehicle Medium Term Notes | Vehicle | |||
Debt Instrument | |||
Outstanding principal | 0 | 2,669 | |
Debt | 0 | 2,669 | |
HVF II Series 2015-3 | Vehicle | |||
Debt Instrument | |||
Outstanding principal | 0 | 163 | |
Debt | 0 | 163 | |
HVF II Series 2016-2 | Vehicle | |||
Debt Instrument | |||
Outstanding principal | 0 | 263 | |
Debt | 0 | 263 | |
HVF II Series 2016-4 | Vehicle | |||
Debt Instrument | |||
Outstanding principal | 0 | 187 | |
Debt | 0 | 187 | |
HVF II Series 2017-1 | Vehicle | |||
Debt Instrument | |||
Outstanding principal | 0 | 199 | |
Debt | 0 | 199 | |
HVF II Series 2017-2 | Vehicle | |||
Debt Instrument | |||
Outstanding principal | 0 | 164 | |
Debt | 0 | 164 | |
HVF II Series 2018-1 | Vehicle | |||
Debt Instrument | |||
Outstanding principal | 0 | 468 | |
Debt | 0 | 468 | |
HVF II Series 2018-2 | Vehicle | |||
Debt Instrument | |||
Outstanding principal | 0 | 94 | |
Debt | 0 | 94 | |
HVF II Series 2018-3 | Vehicle | |||
Debt Instrument | |||
Outstanding principal | 0 | 95 | |
Debt | 0 | 95 | |
HVF II Series 2019-1 | Vehicle | |||
Debt Instrument | |||
Outstanding principal | 0 | 330 | |
Debt | 0 | 330 | |
HVF II Series 2019-2 | Vehicle | |||
Debt Instrument | |||
Outstanding principal | 0 | 354 | |
Debt | 0 | 354 | |
HVF II Series 2019-3 | Vehicle | |||
Debt Instrument | |||
Outstanding principal | 0 | 352 | |
Debt | 0 | 352 | |
Vehicle Debt - Other | Vehicle | |||
Debt Instrument | |||
Outstanding principal | 953 | 1,478 | |
Debt | 953 | 1,478 | |
European Fleet Notes | |||
Debt Instrument | |||
Outstanding principal | 0 | 888 | |
Debt | 0 | $ 888 | |
Foreign currency exchange rate (EURO to USD) | 1.22 | ||
European Fleet Notes | Vehicle | |||
Debt Instrument | |||
Outstanding principal | 0 | $ 888 | |
Debt | $ 0 | 888 | |
European ABS | Vehicle | |||
Debt Instrument | |||
Weighted average interest rate | 1.80% | ||
Outstanding principal | $ 395 | 263 | |
Debt | $ 395 | 263 | |
Hertz Canadian Securitization | Vehicle | |||
Debt Instrument | |||
Weighted average interest rate | 2.49% | ||
Outstanding principal | $ 191 | 53 | |
Debt | $ 191 | 53 | |
Australian Securitization | Vehicle | |||
Debt Instrument | |||
Weighted average interest rate | 1.66% | ||
Outstanding principal | $ 128 | 97 | |
Debt | $ 128 | 97 | |
New Zealand RCF | Vehicle | |||
Debt Instrument | |||
Weighted average interest rate | 3.49% | ||
Outstanding principal | $ 39 | 35 | |
Debt | $ 39 | 35 | |
U.K. Financing Facility | Vehicle | |||
Debt Instrument | |||
Weighted average interest rate | 3.68% | ||
Outstanding principal | $ 98 | 105 | |
Debt | $ 98 | 105 | |
U.K. Toyota Financing Facility | Vehicle | |||
Debt Instrument | |||
Weighted average interest rate | 2.20% | ||
Outstanding principal | $ 9 | 0 | |
Debt | $ 9 | 0 | |
Other Vehicle Debt | Vehicle | |||
Debt Instrument | |||
Weighted average interest rate | 2.89% | ||
Outstanding principal | $ 93 | 37 | |
Debt | 93 | 37 | |
6.250% Senior Notes due October 2022 | |||
Debt Instrument | |||
Outstanding principal | 0 | 500 | |
Debt | $ 0 | 500 | |
Interest rate | 6.25% | 6.25% | |
5.500% Senior Notes due October 2024 | |||
Debt Instrument | |||
Outstanding principal | $ 0 | 800 | |
Debt | $ 0 | 800 | |
Interest rate | 5.50% | ||
7.125% Senior Notes due August 2026 | |||
Debt Instrument | |||
Outstanding principal | $ 0 | 500 | |
Debt | $ 0 | 500 | |
Interest rate | 7.125% | ||
6.000% Senior Notes due January 2028 | |||
Debt Instrument | |||
Outstanding principal | $ 0 | 900 | |
Debt | $ 0 | 900 | |
Interest rate | 6.00% | ||
4.125% Senior Notes due October 2021 | |||
Debt Instrument | |||
Outstanding principal | $ 0 | 276 | |
Debt | $ 0 | 276 | |
Interest rate | 4.125% | ||
European Fleet Notes, 5.500% due March 2023 | |||
Debt Instrument | |||
Outstanding principal | $ 0 | 612 | |
Debt | $ 0 | 612 | |
Interest rate | 5.50% | ||
Vehicle | |||
Debt Instrument | |||
Outstanding principal | $ 7,921 | 6,024 | |
Unamortized debt issuance costs and net (discount) premium | (33) | (63) | |
Debt | $ 7,921 | $ 6,024 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) £ in Millions, $ in Millions, $ in Millions, $ in Millions | Dec. 31, 2021USD ($) | Jun. 30, 2021USD ($) | Feb. 16, 2021USD ($) | Jun. 30, 2021USD ($) | May 31, 2021EUR (€) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Jan. 31, 2022USD ($) | Jan. 31, 2022AUD ($) | Dec. 31, 2021EUR (€) | Dec. 31, 2021AUD ($) | Nov. 30, 2021USD ($) | Sep. 30, 2021 | May 31, 2021NZD ($) | May 31, 2021GBP (£) | Apr. 30, 2021EUR (€) | Apr. 30, 2021GBP (£) | Mar. 31, 2021 | Jan. 27, 2021CAD ($) | Oct. 29, 2020USD ($) | |
Debt Instrument | ||||||||||||||||||||||
Outstanding standby letters of credit | $ 0 | $ 0 | ||||||||||||||||||||
Assets | [1] | 19,783 | 19,783 | $ 16,908 | ||||||||||||||||||
Liabilities | [1] | $ 16,806 | $ 16,806 | 16,815 | ||||||||||||||||||
Restricted net assets of subsidiaries as percentage of total consolidated net assets, greater than | 25.00% | 25.00% | 25.00% | 25.00% | ||||||||||||||||||
Accrued liabilities | ||||||||||||||||||||||
Debt Instrument | ||||||||||||||||||||||
Interest expense, net | $ 12 | 136 | ||||||||||||||||||||
Liabilities subject to compromise | ||||||||||||||||||||||
Debt Instrument | ||||||||||||||||||||||
Interest expense, net | 70 | |||||||||||||||||||||
Vehicle | ||||||||||||||||||||||
Debt Instrument | ||||||||||||||||||||||
Proceeds from issuance of vehicle debt | 14,323 | 4,546 | $ 13,013 | |||||||||||||||||||
Repayments of debt | 12,607 | 10,751 | 11,530 | |||||||||||||||||||
Non-vehicle | ||||||||||||||||||||||
Debt Instrument | ||||||||||||||||||||||
Proceeds from issuance of vehicle debt | 4,644 | 1,812 | 3,016 | |||||||||||||||||||
Repayments of debt | $ 6,352 | 855 | $ 3,732 | |||||||||||||||||||
HVF II | ||||||||||||||||||||||
Debt Instrument | ||||||||||||||||||||||
Repayments of debt | $ 3,500 | |||||||||||||||||||||
Hertz Interim Vehicle Financing | ||||||||||||||||||||||
Debt Instrument | ||||||||||||||||||||||
Repayments of debt | $ 2,200 | |||||||||||||||||||||
First Lien RCF | ||||||||||||||||||||||
Debt Instrument | ||||||||||||||||||||||
Maximum consolidated leverage ratio | 3 | 3.50 | 3.50 | 3 | 3 | 3 | 3.50 | 3 | ||||||||||||||
Senior Unsecured Notes | ||||||||||||||||||||||
Debt Instrument | ||||||||||||||||||||||
Debt face amount | $ 1,500 | |||||||||||||||||||||
Term Loans | ||||||||||||||||||||||
Debt Instrument | ||||||||||||||||||||||
Debt instrument, periodic payment | $ 3.3 | |||||||||||||||||||||
Term Loans | Base Rate | ||||||||||||||||||||||
Debt Instrument | ||||||||||||||||||||||
Basis spread on variable rate (percent) | 2.25% | |||||||||||||||||||||
Term Loans | London Interbank Offered Rate (LIBOR) | ||||||||||||||||||||||
Debt Instrument | ||||||||||||||||||||||
Basis spread on variable rate (percent) | 3.25% | |||||||||||||||||||||
Term Loans | First Lien RCF | ||||||||||||||||||||||
Debt Instrument | ||||||||||||||||||||||
Long-term debt | $ 1,500 | $ 1,500 | ||||||||||||||||||||
Term B Loan | First Lien RCF | ||||||||||||||||||||||
Debt Instrument | ||||||||||||||||||||||
Debt face amount | 1,300 | 1,300 | ||||||||||||||||||||
Term C Loan | ||||||||||||||||||||||
Debt Instrument | ||||||||||||||||||||||
Outstanding standby letters of credit | $ 245 | $ 245 | ||||||||||||||||||||
Term C Loan | First Lien RCF | ||||||||||||||||||||||
Debt Instrument | ||||||||||||||||||||||
Debt face amount | 245 | 245 | ||||||||||||||||||||
Senior Notes Due 2026 | Senior Unsecured Notes | ||||||||||||||||||||||
Debt Instrument | ||||||||||||||||||||||
Debt face amount | 500 | |||||||||||||||||||||
Senior Notes Due 2029 | Senior Unsecured Notes | ||||||||||||||||||||||
Debt Instrument | ||||||||||||||||||||||
Debt face amount | $ 1,000 | |||||||||||||||||||||
Debtor In Possession Credit Agreement | ||||||||||||||||||||||
Debt Instrument | ||||||||||||||||||||||
Proceeds from issuance of vehicle debt | $ 250 | |||||||||||||||||||||
Debtor In Possession Credit Agreement | Vehicle | ||||||||||||||||||||||
Debt Instrument | ||||||||||||||||||||||
DIP credit agreement, amount | $ 1,000 | |||||||||||||||||||||
Debtor In Possession Credit Agreement | Non-vehicle | ||||||||||||||||||||||
Debt Instrument | ||||||||||||||||||||||
DIP credit agreement, amount | $ 800 | |||||||||||||||||||||
HIL Credit Agreement | ||||||||||||||||||||||
Debt Instrument | ||||||||||||||||||||||
Outstanding principal | € | € 250,000,000 | |||||||||||||||||||||
Repayments of debt | € | € 257,000,000 | |||||||||||||||||||||
HVF III Series 2021-A | ||||||||||||||||||||||
Debt Instrument | ||||||||||||||||||||||
Long-term debt | 6,800 | 6,800 | ||||||||||||||||||||
HVF III Series 2021-A | Variable Funding Notes | ||||||||||||||||||||||
Debt Instrument | ||||||||||||||||||||||
Long-term debt | 2,800 | 2,800 | ||||||||||||||||||||
HVF III Series 2021-A Class B | Variable Funding Notes | ||||||||||||||||||||||
Debt Instrument | ||||||||||||||||||||||
Long-term debt | 188 | 188 | ||||||||||||||||||||
HVF III Series 2021-1 | ||||||||||||||||||||||
Debt Instrument | ||||||||||||||||||||||
Long-term debt | 2,000 | 2,000 | ||||||||||||||||||||
HVF III Series 2021-2 | ||||||||||||||||||||||
Debt Instrument | ||||||||||||||||||||||
Long-term debt | 2,000 | 2,000 | ||||||||||||||||||||
HVF III Series 2022-1 Notes and Series 2022-2 Notes | Subsequent Event | ||||||||||||||||||||||
Debt Instrument | ||||||||||||||||||||||
Long-term debt | $ 1,500 | |||||||||||||||||||||
HVF III Series 2022-1 Notes | ||||||||||||||||||||||
Debt Instrument | ||||||||||||||||||||||
Elimination of debt | 98 | |||||||||||||||||||||
HVF III Series 2022-1 Notes | Subsequent Event | ||||||||||||||||||||||
Debt Instrument | ||||||||||||||||||||||
Long-term debt | 750 | |||||||||||||||||||||
HVF III Series 2022-2 | ||||||||||||||||||||||
Debt Instrument | ||||||||||||||||||||||
Elimination of debt | 98 | |||||||||||||||||||||
HVF III Series 2022-2 | Subsequent Event | ||||||||||||||||||||||
Debt Instrument | ||||||||||||||||||||||
Long-term debt | $ 750 | |||||||||||||||||||||
European ABS | ||||||||||||||||||||||
Debt Instrument | ||||||||||||||||||||||
Outstanding principal | € | € 750,000,000 | € 450,000,000 | ||||||||||||||||||||
New Zealand RCF | ||||||||||||||||||||||
Debt Instrument | ||||||||||||||||||||||
Outstanding principal | $ 60 | |||||||||||||||||||||
U.K. Toyota Financing Facility | ||||||||||||||||||||||
Debt Instrument | ||||||||||||||||||||||
Outstanding principal | £ | £ 10 | |||||||||||||||||||||
Letters of credit facility | ||||||||||||||||||||||
Debt Instrument | ||||||||||||||||||||||
Outstanding standby letters of credit | 591 | 591 | ||||||||||||||||||||
Revolving Credit Facility | First Lien RCF | ||||||||||||||||||||||
Debt Instrument | ||||||||||||||||||||||
Aggregate principal amount | $ 1,300 | $ 1,300 | ||||||||||||||||||||
Revolving Credit Facility | First Lien RCF | ||||||||||||||||||||||
Debt Instrument | ||||||||||||||||||||||
Outstanding standby letters of credit | $ 330 | $ 330 | ||||||||||||||||||||
Revolving Credit Facility | First Lien RCF | Base Rate | ||||||||||||||||||||||
Debt Instrument | ||||||||||||||||||||||
Basis spread on variable rate (percent) | 2.50% | |||||||||||||||||||||
Revolving Credit Facility | First Lien RCF | London Interbank Offered Rate (LIBOR) | ||||||||||||||||||||||
Debt Instrument | ||||||||||||||||||||||
Basis spread on variable rate (percent) | 3.00% | |||||||||||||||||||||
Revolving Credit Facility | Funding LP Series 2021-A | ||||||||||||||||||||||
Debt Instrument | ||||||||||||||||||||||
Aggregate maximum borrowings | $ 350 | |||||||||||||||||||||
Revolving Credit Facility | Australian Securitization | ||||||||||||||||||||||
Debt Instrument | ||||||||||||||||||||||
Aggregate maximum borrowings | $ 210,000,000 | |||||||||||||||||||||
Revolving Credit Facility | Australian Securitization | Subsequent Event | ||||||||||||||||||||||
Debt Instrument | ||||||||||||||||||||||
Aggregate maximum borrowings | $ 250,000,000 | |||||||||||||||||||||
Revolving Credit Facility | UK Financing Facility | ||||||||||||||||||||||
Debt Instrument | ||||||||||||||||||||||
Aggregate maximum borrowings | £ | £ 100 | |||||||||||||||||||||
International Fleet Financing No. 2 B.V. | ||||||||||||||||||||||
Debt Instrument | ||||||||||||||||||||||
Minority ownership interest, percent | 25.00% | |||||||||||||||||||||
Assets | $ 734 | $ 734 | 464 | |||||||||||||||||||
Liabilities | $ 733 | $ 733 | $ 464 | |||||||||||||||||||
[1] | Hertz Global Holdings, Inc.'s consolidated total assets as of December 31, 2021 and December 31, 2020 included total assets of variable interest entities ("VIEs") of $734 million and $511 million, respectively, which can only be used to settle obligations of the VIEs. Hertz Global Holdings, Inc.'s consolidated total liabilities as of December 31, 2021 and December 31, 2020 included total liabilities of VIEs of $733 million and $475 million, respectively, for which the creditors of the VIEs have no recourse to Hertz Global Holdings, Inc. See "Pledges Related to Vehicle Financing" in Note 6, "Debt," and "Termination of 767 Auto Leasing Agreement" in Note 3, "Divestitures," for further information. |
Debt (Extinguishment of Debt) (
Debt (Extinguishment of Debt) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Extinguishment of Debt [Line Items] | |||
Loss on extinguishment of debt | $ 8 | $ 5 | $ 43 |
Non-vehicle | Redemption/Termination | |||
Extinguishment of Debt [Line Items] | |||
Loss on extinguishment of debt | 88 | 0 | 43 |
HIL Credit Agreement And Second HIL Credit Agreement | Non-vehicle | Redemption/Termination | |||
Extinguishment of Debt [Line Items] | |||
Loss on extinguishment of debt | 13 | 0 | 0 |
HIL Credit Agreement | Non-vehicle | Redemption/Termination | |||
Extinguishment of Debt [Line Items] | |||
Loss on extinguishment of debt | 8 | 0 | 0 |
HIL Credit Agreement | Vehicle | Redemption/Termination | |||
Extinguishment of Debt [Line Items] | |||
Loss on extinguishment of debt | 98 | 5 | 0 |
Second HIL Credit Agreement | Redemption/Termination | |||
Extinguishment of Debt [Line Items] | |||
Loss on extinguishment of debt | 199 | 5 | 43 |
Second HIL Credit Agreement | Non-vehicle | Redemption/Termination | |||
Extinguishment of Debt [Line Items] | |||
Loss on extinguishment of debt | 5 | 0 | 0 |
Senior Term Loan | Non-vehicle | Redemption/Termination | |||
Extinguishment of Debt [Line Items] | |||
Loss on extinguishment of debt | 16 | 0 | 0 |
Senior RCF | Non-vehicle | Redemption/Termination | |||
Extinguishment of Debt [Line Items] | |||
Loss on extinguishment of debt | 22 | 0 | 0 |
Senior Notes | Non-vehicle | Redemption/Termination | |||
Extinguishment of Debt [Line Items] | |||
Loss on extinguishment of debt | 29 | 0 | 0 |
Senior Second Priority Secured Notes | Non-vehicle | Redemption/Termination | |||
Extinguishment of Debt [Line Items] | |||
Loss on extinguishment of debt | 4 | 0 | 39 |
Promissory Notes | Non-vehicle | Redemption/Termination | |||
Extinguishment of Debt [Line Items] | |||
Loss on extinguishment of debt | 2 | 0 | 0 |
Alternative Letter of Credit Facility | Non-vehicle | Redemption/Termination | |||
Extinguishment of Debt [Line Items] | |||
Loss on extinguishment of debt | 7 | 0 | 0 |
Letter of Credit Facility | Non-vehicle | Redemption/Termination | |||
Extinguishment of Debt [Line Items] | |||
Loss on extinguishment of debt | $ 8 | 0 | 0 |
5.875% Senior Notes due 2020 | |||
Extinguishment of Debt [Line Items] | |||
Interest rate | 5.875% | ||
5.875% Senior Notes due 2020 | Non-vehicle | Redemption/Termination | |||
Extinguishment of Debt [Line Items] | |||
Loss on extinguishment of debt | $ 0 | 0 | 2 |
7.375% Senior Notes due 2021 | |||
Extinguishment of Debt [Line Items] | |||
Interest rate | 7.375% | ||
7.375% Senior Notes due 2021 | Non-vehicle | Redemption/Termination | |||
Extinguishment of Debt [Line Items] | |||
Loss on extinguishment of debt | $ 0 | 0 | 2 |
HVF II U.S. Vehicle Variable Funding Notes | Vehicle | Redemption/Termination | |||
Extinguishment of Debt [Line Items] | |||
Loss on extinguishment of debt | 9 | 0 | 0 |
HVF II U.S. Vehicle Medium Term Notes | Vehicle | Redemption/Termination | |||
Extinguishment of Debt [Line Items] | |||
Loss on extinguishment of debt | 39 | 0 | 0 |
HVIF Series 2020-1 | Vehicle | Redemption/Termination | |||
Extinguishment of Debt [Line Items] | |||
Loss on extinguishment of debt | 21 | 0 | 0 |
European Vehicle Notes | Vehicle | Redemption/Termination | |||
Extinguishment of Debt [Line Items] | |||
Loss on extinguishment of debt | 29 | 0 | 0 |
European ABS | Vehicle | Redemption/Termination | |||
Extinguishment of Debt [Line Items] | |||
Loss on extinguishment of debt | $ 0 | $ 5 | $ 0 |
Debt (Debt Maturities) (Details
Debt (Debt Maturities) (Details) $ in Millions | Dec. 31, 2021USD ($) |
Maturities of Long-term Debt [Abstract] | |
2022 | $ 331 |
2023 | 3,637 |
2024 | 2,041 |
2025 | 13 |
2026 | 2,513 |
After 2026 | 2,474 |
Non-vehicle | |
Maturities of Long-term Debt [Abstract] | |
2022 | 20 |
2023 | 20 |
2024 | 15 |
2025 | 13 |
2026 | 513 |
After 2026 | 2,474 |
Vehicle | |
Maturities of Long-term Debt [Abstract] | |
2022 | 311 |
2023 | 3,617 |
2024 | 2,026 |
2025 | 0 |
2026 | 2,000 |
After 2026 | $ 0 |
Debt (Borrowing Capacity) (Deta
Debt (Borrowing Capacity) (Details) $ in Millions | Dec. 31, 2021USD ($) |
Debt Instrument | |
Remaining capacity | $ 1,531 |
Availability under borrowing base limitation | 925 |
Non-vehicle | |
Debt Instrument | |
Remaining capacity | 925 |
Availability under borrowing base limitation | 925 |
Vehicle | |
Debt Instrument | |
Remaining capacity | 606 |
Availability under borrowing base limitation | 0 |
First Lien RCF | Non-vehicle | |
Debt Instrument | |
Remaining capacity | 925 |
Availability under borrowing base limitation | 925 |
HVF III Series 2021-A | Vehicle | |
Debt Instrument | |
Remaining capacity | 0 |
Availability under borrowing base limitation | 0 |
European ABS | Vehicle | |
Debt Instrument | |
Remaining capacity | 456 |
Availability under borrowing base limitation | 0 |
Hertz Canadian Securitization | Vehicle | |
Debt Instrument | |
Remaining capacity | 82 |
Availability under borrowing base limitation | 0 |
Australian Securitization | Vehicle | |
Debt Instrument | |
Remaining capacity | 24 |
Availability under borrowing base limitation | 0 |
UK Financing Facility | Vehicle | |
Debt Instrument | |
Remaining capacity | 37 |
Availability under borrowing base limitation | 0 |
U.K. Toyota Financing Facility | Vehicle | |
Debt Instrument | |
Remaining capacity | 5 |
Availability under borrowing base limitation | 0 |
New Zealand RCF | Vehicle | |
Debt Instrument | |
Remaining capacity | 2 |
Availability under borrowing base limitation | $ 0 |
Employee Retirement Benefits (N
Employee Retirement Benefits (Narrative) (Details) | 12 Months Ended | |||
Dec. 31, 2021USD ($)plan | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Liabilities subject to compromise | $ 0 | $ 4,965,000,000 | ||
Pension benefits of retirement plan | 2,977,000,000 | 93,000,000 | $ 1,888,000,000 | $ 1,120,000,000 |
Defined contribution plan | $ 16,000,000 | 11,000,000 | 27,000,000 | |
Number of plans | plan | 2 | |||
Pension Benefits | U.S. plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Expected return on plan assets, percent | 4.50% | |||
Fair value of plan assets | $ 468,000,000 | 488,000,000 | 503,000,000 | |
Company contributions | 24,000,000 | 2,000,000 | ||
Estimated future contributions | 0 | |||
Pension Benefits | U.K. plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 248,000,000 | 251,000,000 | ||
Estimated future contributions | 2,000,000 | |||
Pension Benefits | Non-U.S. | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 255,000,000 | 258,000,000 | 228,000,000 | |
Company contributions | 5,000,000 | 4,000,000 | ||
Other Pension Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Provisions charged to income | $ 5,000,000 | 6,000,000 | 11,000,000 | |
Other Pension Plan | U.K. plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Expected return on plan assets, percent | 3.00% | |||
Company contributions | $ 3,000,000 | 3,000,000 | ||
United States Non-Qualified Pension Plan of US Entity | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Company contributions | $ 24,000,000 | 2,000,000 | ||
Fixed Income Funds | Pension Benefits | U.S. plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target plan asset allocations | 70.00% | |||
Equity Securities | Pension Benefits | U.S. plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target plan asset allocations | 30.00% | |||
Actively Managed Multi-Asset Funds | Other Pension Plan | U.K. plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target plan asset allocations | 30.00% | |||
Passive Equity Funds | Other Pension Plan | U.K. plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target plan asset allocations | 10.00% | |||
Passive Bond Funds | Other Pension Plan | U.K. plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target plan asset allocations | 60.00% | |||
Restructuring and Restructuring Related Charges | Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Liabilities subject to compromise | 24,000,000 | |||
Restructuring and Restructuring Related Charges | Pension Benefits | U.S. plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Liabilities subject to compromise | 24,000,000 | |||
Restructuring and Restructuring Related Charges | Other Pension Plan | U.S. plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Liabilities subject to compromise | $ 20,000,000 | |||
Pension and Other Post-Employment Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Pension benefits of retirement plan | $ (88,000,000) | $ (122,000,000) | $ (118,000,000) |
Employee Retirement Benefits (C
Employee Retirement Benefits (Change in Benefit Obligation) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Funded Status of the Plan | |||
Liabilities subject to compromise | $ 0 | $ 4,965 | |
Pension Benefits | U.S. plan | |||
Change in Benefit Obligation | |||
Benefit obligation at the beginning of the year | 522 | 559 | |
Service cost | 0 | 0 | $ 0 |
Interest cost | 12 | 15 | 21 |
Plan curtailments | 0 | (2) | |
Plan settlements | (26) | (88) | |
Benefits paid | (27) | (3) | |
Foreign currency exchange rate translation | 0 | 0 | |
Actuarial (gain) loss | (16) | 41 | |
Benefit obligation at the end of the year | 465 | 522 | 559 |
Change in Plan Assets | |||
Fair value of plan assets at the beginning of the year | 488 | 503 | |
Actual return gain on plan assets | 9 | 74 | |
Company contributions | 24 | 2 | |
Plan settlements | (26) | (88) | |
Benefits paid | (27) | (3) | |
Foreign currency exchange rate translation | 0 | 0 | |
Fair value of plan assets at the end of the year | 468 | 488 | 503 |
Funded Status of the Plan | |||
Plan assets less than benefit obligation | 3 | (34) | |
Pension Benefits | Non-U.S. | |||
Change in Benefit Obligation | |||
Benefit obligation at the beginning of the year | 340 | 286 | |
Service cost | 1 | 1 | 1 |
Interest cost | 4 | 5 | 6 |
Plan curtailments | 0 | 0 | |
Plan settlements | (6) | (5) | |
Benefits paid | (5) | (6) | |
Foreign currency exchange rate translation | (7) | 17 | |
Actuarial (gain) loss | (20) | 42 | |
Benefit obligation at the end of the year | 307 | 340 | 286 |
Change in Plan Assets | |||
Fair value of plan assets at the beginning of the year | 258 | 228 | |
Actual return gain on plan assets | 4 | 28 | |
Company contributions | 5 | 4 | |
Plan settlements | (6) | (5) | |
Benefits paid | (5) | (6) | |
Foreign currency exchange rate translation | (1) | 9 | |
Fair value of plan assets at the end of the year | 255 | 258 | 228 |
Funded Status of the Plan | |||
Plan assets less than benefit obligation | (52) | (82) | |
Postretirement | U.S. plan | |||
Change in Benefit Obligation | |||
Benefit obligation at the beginning of the year | 12 | 12 | |
Service cost | 0 | 0 | 0 |
Interest cost | 1 | 0 | 0 |
Plan curtailments | 0 | 0 | |
Plan settlements | 0 | 0 | |
Benefits paid | (1) | (1) | |
Foreign currency exchange rate translation | 0 | 0 | |
Actuarial (gain) loss | 0 | 1 | |
Benefit obligation at the end of the year | 12 | 12 | 12 |
Change in Plan Assets | |||
Fair value of plan assets at the beginning of the year | 0 | 0 | |
Actual return gain on plan assets | 0 | 0 | |
Company contributions | 1 | 1 | |
Plan settlements | 0 | 0 | |
Benefits paid | (1) | (1) | |
Foreign currency exchange rate translation | 0 | 0 | |
Fair value of plan assets at the end of the year | 0 | 0 | $ 0 |
Funded Status of the Plan | |||
Plan assets less than benefit obligation | $ (12) | $ (12) |
Employee Retirement Benefits (A
Employee Retirement Benefits (Amounts Recognized in Balance Sheet) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021USD ($)yr | Dec. 31, 2020USD ($)yr | Dec. 31, 2019USD ($)yr | |
Weighted-average assumptions as of December 31 | |||
Liabilities subject to compromise | $ 0 | $ 4,965 | |
Pension Benefits | Restructuring and Restructuring Related Charges | |||
Weighted-average assumptions as of December 31 | |||
Liabilities subject to compromise | 24 | ||
U.S. plan | Pension Benefits | |||
Amounts recognized in balance sheets: | |||
Net obligation recognized in the balance sheets | 3 | (34) | |
Prior service credit | 0 | 0 | |
Net gain (loss) | (28) | (47) | |
Accumulated other comprehensive income (loss) | (28) | (47) | |
Funded/(Unfunded) accrued pension or postretirement benefit | 31 | 13 | |
Net obligation recognized in the balance sheets | 3 | (34) | |
Total recognized in other comprehensive (income) loss | (20) | (26) | |
Total recognized in net periodic benefit cost and other comprehensive (income) loss | (14) | (20) | |
Accumulated Benefit Obligation at December 31 | $ 465 | $ 522 | |
Weighted-average assumptions as of December 31 | |||
Discount rate | 2.70% | 2.30% | |
Expected return on assets | 4.50% | 4.50% | |
Average rate of increase in compensation | 4.30% | 4.30% | |
Interest crediting rate | 3.80% | 3.80% | 3.80% |
Components of Net Periodic Pension and Postretirement Expense (Benefit) | |||
Service cost | $ 0 | $ 0 | $ 0 |
Interest cost | 12 | 15 | 21 |
Expected return on plan assets | (18) | (20) | (22) |
Net amortizations | 0 | 2 | 6 |
Settlement loss | 12 | 9 | 5 |
Net pension and postretirement expense (benefit) | $ 6 | $ 6 | $ 10 |
Weighted-average discount rate for expense (January 1) | 2.20% | 3.10% | 4.20% |
Weighted-average assumed long-term rate of return on assets (January 1) | 4.50% | 4.80% | 6.30% |
Weighted-average interest crediting rate for expense | 3.80% | 3.80% | 3.80% |
U.S. plan | Pension Benefits | Restructuring and Restructuring Related Charges | |||
Weighted-average assumptions as of December 31 | |||
Liabilities subject to compromise | $ 24 | ||
U.S. plan | Pension Benefits | Prepaid expenses and other assets | |||
Amounts recognized in balance sheets: | |||
Net obligation recognized in the balance sheets | $ 3 | 0 | |
U.S. plan | Pension Benefits | Accrued liabilities | |||
Amounts recognized in balance sheets: | |||
Net obligation recognized in the balance sheets | 0 | (34) | |
U.S. plan | Postretirement Benefits | |||
Amounts recognized in balance sheets: | |||
Net obligation recognized in the balance sheets | (12) | (12) | |
Prior service credit | 0 | 0 | |
Net gain (loss) | 0 | (1) | |
Accumulated other comprehensive income (loss) | 0 | (1) | |
Funded/(Unfunded) accrued pension or postretirement benefit | (12) | (11) | |
Net obligation recognized in the balance sheets | (12) | (12) | |
Total recognized in other comprehensive (income) loss | (1) | 1 | |
Total recognized in net periodic benefit cost and other comprehensive (income) loss | $ (1) | $ 1 | |
Weighted-average assumptions as of December 31 | |||
Discount rate | 2.20% | 2.30% | |
Initial health care cost trend rate | 5.60% | 5.50% | |
Ultimate health care cost trend rate | 4.00% | 4.50% | |
Number of years to ultimate trend rate (in years) | yr | 25 | 18 | |
Components of Net Periodic Pension and Postretirement Expense (Benefit) | |||
Service cost | $ 0 | $ 0 | $ 0 |
Interest cost | 1 | 0 | 0 |
Expected return on plan assets | 0 | 0 | 0 |
Net amortizations | 0 | 0 | 0 |
Settlement loss | 0 | 0 | 0 |
Net pension and postretirement expense (benefit) | $ 1 | $ 0 | $ 0 |
Weighted-average discount rate for expense (January 1) | 1.90% | 3.20% | 4.20% |
Initial health care cost trend rate | 5.50% | 5.80% | 6.10% |
Ultimate health care cost trend rate (rate to which cost trend is expected to decline) | 4.50% | 4.50% | 4.50% |
Number of years to ultimate trend rate (in years) | yr | 25 | 18 | 19 |
U.S. plan | Postretirement Benefits | Prepaid expenses and other assets | |||
Amounts recognized in balance sheets: | |||
Net obligation recognized in the balance sheets | $ 0 | $ 0 | |
U.S. plan | Postretirement Benefits | Accrued liabilities | |||
Amounts recognized in balance sheets: | |||
Net obligation recognized in the balance sheets | (12) | (12) | |
Non-U.S. | Pension Benefits | |||
Amounts recognized in balance sheets: | |||
Net obligation recognized in the balance sheets | (52) | (82) | |
Prior service credit | (2) | (2) | |
Net gain (loss) | (72) | (93) | |
Accumulated other comprehensive income (loss) | (74) | (95) | |
Funded/(Unfunded) accrued pension or postretirement benefit | 22 | 13 | |
Net obligation recognized in the balance sheets | (52) | (82) | |
Total recognized in other comprehensive (income) loss | (21) | 23 | |
Total recognized in net periodic benefit cost and other comprehensive (income) loss | (20) | 25 | |
Accumulated Benefit Obligation at December 31 | $ 306 | $ 338 | |
Weighted-average assumptions as of December 31 | |||
Discount rate | 1.70% | 1.40% | |
Expected return on assets | 3.00% | 3.00% | |
Average rate of increase in compensation | 2.10% | 2.10% | |
Components of Net Periodic Pension and Postretirement Expense (Benefit) | |||
Service cost | $ 1 | $ 1 | $ 1 |
Interest cost | 4 | 5 | 6 |
Expected return on plan assets | (7) | (7) | (9) |
Net amortizations | 2 | 1 | 1 |
Settlement loss | 1 | 2 | 0 |
Net pension and postretirement expense (benefit) | $ 1 | $ 2 | $ (1) |
Weighted-average discount rate for expense (January 1) | 1.40% | 1.90% | 2.70% |
Weighted-average assumed long-term rate of return on assets (January 1) | 3.00% | 3.20% | 4.80% |
Non-U.S. | Pension Benefits | Prepaid expenses and other assets | |||
Amounts recognized in balance sheets: | |||
Net obligation recognized in the balance sheets | $ 30 | $ 14 | |
Non-U.S. | Pension Benefits | Accrued liabilities | |||
Amounts recognized in balance sheets: | |||
Net obligation recognized in the balance sheets | $ (82) | $ (96) |
Employee Retirement Benefits (F
Employee Retirement Benefits (Fair Value of Plan Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
U.S. plan | Level 1 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of pension plan assets | $ 8 | $ 9 |
U.S. plan | Level 2 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of pension plan assets | 454 | 470 |
U.S. plan | Measured at NAV | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of pension plan assets | 6 | 9 |
U.S. plan | Cash | Level 1 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of pension plan assets | 5 | 6 |
U.S. plan | Cash | Level 2 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of pension plan assets | 0 | 0 |
U.S. plan | Cash | Measured at NAV | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of pension plan assets | 0 | 0 |
U.S. plan | Short Term Investments | Level 1 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of pension plan assets | 0 | 0 |
U.S. plan | Short Term Investments | Level 2 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of pension plan assets | 27 | 28 |
U.S. plan | Short Term Investments | Measured at NAV | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of pension plan assets | 0 | 0 |
U.S. plan | U.S. Large Cap | Level 1 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of pension plan assets | 0 | 0 |
U.S. plan | U.S. Large Cap | Level 2 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of pension plan assets | 59 | 66 |
U.S. plan | U.S. Large Cap | Measured at NAV | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of pension plan assets | 0 | 0 |
U.S. plan | U.S. Small Cap | Level 1 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of pension plan assets | 0 | 0 |
U.S. plan | U.S. Small Cap | Level 2 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of pension plan assets | 7 | 11 |
U.S. plan | U.S. Small Cap | Measured at NAV | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of pension plan assets | 0 | 0 |
U.S. plan | International Large Cap | Level 1 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of pension plan assets | 0 | 0 |
U.S. plan | International Large Cap | Level 2 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of pension plan assets | 28 | 36 |
U.S. plan | International Large Cap | Measured at NAV | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of pension plan assets | 0 | 0 |
U.S. plan | International Small Cap | Level 1 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of pension plan assets | 0 | 0 |
U.S. plan | International Small Cap | Level 2 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of pension plan assets | 5 | 7 |
U.S. plan | International Small Cap | Measured at NAV | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of pension plan assets | 0 | 0 |
U.S. plan | International Emerging Markets | Level 1 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of pension plan assets | 0 | 0 |
U.S. plan | International Emerging Markets | Level 2 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of pension plan assets | 6 | 6 |
U.S. plan | International Emerging Markets | Measured at NAV | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of pension plan assets | 6 | 9 |
U.S. plan | U.S. Treasuries | Level 1 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of pension plan assets | 0 | 0 |
U.S. plan | U.S. Treasuries | Level 2 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of pension plan assets | 24 | 18 |
U.S. plan | U.S. Treasuries | Measured at NAV | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of pension plan assets | 0 | 0 |
U.S. plan | Corporate Bonds | Level 1 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of pension plan assets | 0 | 0 |
U.S. plan | Corporate Bonds | Level 2 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of pension plan assets | 247 | 245 |
U.S. plan | Corporate Bonds | Measured at NAV | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of pension plan assets | 0 | 0 |
U.S. plan | Government Bonds | Level 1 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of pension plan assets | 0 | 0 |
U.S. plan | Government Bonds | Level 2 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of pension plan assets | 12 | 9 |
U.S. plan | Government Bonds | Measured at NAV | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of pension plan assets | 0 | 0 |
U.S. plan | Municipal Bonds | Level 1 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of pension plan assets | 0 | 0 |
U.S. plan | Municipal Bonds | Level 2 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of pension plan assets | 10 | 10 |
U.S. plan | Municipal Bonds | Measured at NAV | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of pension plan assets | 0 | 0 |
U.S. plan | Derivatives - Interest Rate | Level 1 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of pension plan assets | 3 | 3 |
U.S. plan | Derivatives - Interest Rate | Level 2 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of pension plan assets | 2 | 0 |
U.S. plan | Derivatives - Interest Rate | Measured at NAV | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of pension plan assets | 0 | 0 |
U.S. plan | Non-Investment Grade Fixed Income | Level 1 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of pension plan assets | 0 | 0 |
U.S. plan | Non-Investment Grade Fixed Income | Level 2 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of pension plan assets | 27 | 34 |
U.S. plan | Non-Investment Grade Fixed Income | Measured at NAV | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of pension plan assets | 0 | 0 |
Non-U.S. | Level 1 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of pension plan assets | 24 | 24 |
Non-U.S. | Level 2 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of pension plan assets | 186 | 190 |
Non-U.S. | Measured at NAV | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of pension plan assets | 38 | 37 |
Non-U.S. | Diversified Growth Funds | Level 1 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of pension plan assets | 0 | 0 |
Non-U.S. | Diversified Growth Funds | Level 2 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of pension plan assets | 37 | 39 |
Non-U.S. | Diversified Growth Funds | Measured at NAV | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of pension plan assets | 0 | 0 |
Non-U.S. | Multi Asset Credit | Level 1 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of pension plan assets | 0 | 0 |
Non-U.S. | Multi Asset Credit | Level 2 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of pension plan assets | 0 | 0 |
Non-U.S. | Multi Asset Credit | Measured at NAV | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of pension plan assets | 38 | 37 |
Non-U.S. | U.K. Equities | Level 1 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of pension plan assets | 0 | 0 |
Non-U.S. | U.K. Equities | Level 2 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of pension plan assets | 12 | 12 |
Non-U.S. | U.K. Equities | Measured at NAV | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of pension plan assets | 0 | 0 |
Non-U.S. | Overseas Equities | Level 1 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of pension plan assets | 0 | 0 |
Non-U.S. | Overseas Equities | Level 2 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of pension plan assets | 14 | 14 |
Non-U.S. | Overseas Equities | Measured at NAV | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of pension plan assets | 0 | 0 |
Non-U.S. | Corporate Bonds | Level 1 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of pension plan assets | 0 | 0 |
Non-U.S. | Corporate Bonds | Level 2 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of pension plan assets | 27 | 27 |
Non-U.S. | Corporate Bonds | Measured at NAV | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of pension plan assets | 0 | 0 |
Non-U.S. | Liability Driven Investments | Level 1 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of pension plan assets | 0 | 0 |
Non-U.S. | Liability Driven Investments | Level 2 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of pension plan assets | 96 | 98 |
Non-U.S. | Liability Driven Investments | Measured at NAV | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of pension plan assets | 0 | 0 |
Non-U.S. | Liquidity Fund | Level 1 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of pension plan assets | 24 | 24 |
Non-U.S. | Liquidity Fund | Level 2 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of pension plan assets | 0 | 0 |
Non-U.S. | Liquidity Fund | Measured at NAV | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of pension plan assets | $ 0 | $ 0 |
Employee Retirement Benefits (E
Employee Retirement Benefits (Estimated Future Benefit Payments & Other Plans) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Pension Benefits | |||
Other Plans [Abstract] | |||
Multiemployer plan, employer contribution, cost | $ 5 | $ 7 | $ 12 |
Pension Benefits | Western Conference of Teamsters | |||
Other Plans [Abstract] | |||
Multiemployer plan, employer contribution, cost | 4 | 5 | 8 |
Pension Benefits | Other Plans | |||
Other Plans [Abstract] | |||
Multiemployer plan, employer contribution, cost | 1 | $ 2 | $ 4 |
U.S. plan | Pension Benefits | |||
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | |||
2022 | 33 | ||
2023 | 33 | ||
2024 | 35 | ||
2025 | 36 | ||
2026 | 39 | ||
2027 to 2031 | 206 | ||
Total | 382 | ||
U.S. plan | Postretirement Benefits | |||
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | |||
2022 | 3 | ||
2023 | 1 | ||
2024 | 1 | ||
2025 | 1 | ||
2026 | 1 | ||
2027 to 2031 | 3 | ||
Total | $ 10 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
2021 Omnibus Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares authorized (in shares) | 62,250,055 | ||||
Percent of outstanding stock maximum | 2.00% | ||||
Shares available for grant (in shares) | 56,840,434 | ||||
Compensation expense | $ 7 | ||||
Income tax benefit | 2 | ||||
Unrecognized compensation cost | $ 105 | ||||
Period for recognition of total unrecognized compensation cost | 2 years 9 months 18 days | ||||
2021 Omnibus Incentive Plan | Stock Option | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expected term (years) | 6 years | ||||
2021 Omnibus Incentive Plan | Restricted Stock and Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 3 years | ||||
2021 Omnibus Incentive Plan | Restricted Stock and Restricted Stock Units | Forecast | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares expected to vest (in shares) | 500,000 | ||||
2021 Omnibus Incentive Plan | Deferred Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares outstanding (in shares) | 24,000 | ||||
2016 Omnibus Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares authorized (in shares) | 11,767,723 | ||||
Compensation expense | $ 3 | $ (2) | $ 18 | ||
2016 Omnibus Incentive Plan | Stock Option | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expected term (years) | 0 years | 0 years | 7 years | ||
2016 Omnibus Incentive Plan | Performance Stock Units and Performance Stock Awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares outstanding (in shares) | 0 | 1,813,305 | |||
2016 Omnibus Incentive Plan | Reorganization, Chapter 11, Fresh-Start Adjustment | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Accelerated cost of unrecognized share-based compensation | $ 10 | ||||
Minimum | 2016 Omnibus Incentive Plan | Stock Option | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based payment award conversion ratio | 1 | ||||
Maximum | 2016 Omnibus Incentive Plan | Stock Option | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expected term (years) | 10 years |
Stock-Based Compensation (Sched
Stock-Based Compensation (Schedule of Valuation Assumptions) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
2016 Omnibus Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average grant date fair value (in dollars per share) | $ 0 | ||
Stock Option | 2021 Omnibus Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 75.00% | ||
Expected dividend yield | 0.00% | ||
Expected term (years) | 6 years | ||
Risk-free interest rate | 1.19% | ||
Weighted-average grant date fair value (in dollars per share) | $ 17.12 | ||
Stock Option | 2016 Omnibus Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 0.00% | 0.00% | 68.50% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Expected term (years) | 0 years | 0 years | 7 years |
Risk-free interest rate | 0.00% | 0.00% | 1.93% |
Weighted-average grant date fair value (in dollars per share) | $ 0 | $ 0 | $ 9.19 |
Stock-Based Compensation (Summa
Stock-Based Compensation (Summary of Stock Option Activity) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
2021 Omnibus Incentive Plan | ||
Shares | ||
Outstanding beginning balance (in shares) | 0 | |
Granted (in shares) | 3,682,215 | |
Exercised (in shares) | 0 | |
Forfeited or Expired (in shares) | (3,360) | |
Outstanding ending balance (in shares) | 3,678,855 | 0 |
Exercisable (in shares) | 0 | |
Non-vested (in shares) | 3,678,855 | |
Weighted Average Exercise Price | ||
Outstanding beginning balance (in dollars per share) | $ 0 | |
Granted (in dollars per share) | 26.17 | |
Exercised (in dollars per share) | 0 | |
Forfeited or Expired (in dollars per share) | 26.17 | |
Outstanding ending balance (in dollars per share) | 26.17 | $ 0 |
Exercisable (in dollars per share) | $ 0 | |
Weighted-Average Remaining Contractual Term (years)/ Aggregate intrinsic Value | ||
Weighted average remaining contractual term | 9 years 10 months 24 days | |
Aggregate intrinsic value | $ 0 | $ 0 |
Aggregate intrinsic value, Exercisable | $ 0 | |
2016 Omnibus Incentive Plan | ||
Shares | ||
Outstanding beginning balance (in shares) | 99,038 | |
Granted (in shares) | 0 | |
Exercised (in shares) | 0 | |
Forfeited or Expired (in shares) | (99,038) | |
Outstanding ending balance (in shares) | 0 | 99,038 |
Exercisable (in shares) | 0 | |
Non-vested (in shares) | 0 | 23,249 |
Weighted Average Exercise Price | ||
Outstanding beginning balance (in dollars per share) | $ 34.76 | |
Granted (in dollars per share) | 0 | |
Exercised (in dollars per share) | 0 | |
Forfeited or Expired (in dollars per share) | 34.76 | |
Outstanding ending balance (in dollars per share) | 0 | $ 34.76 |
Exercisable (in dollars per share) | $ 0 | |
Weighted-Average Remaining Contractual Term (years)/ Aggregate intrinsic Value | ||
Weighted average remaining contractual term | 2 years 3 months 18 days | |
Aggregate intrinsic value | $ 0 | $ 0 |
Aggregate intrinsic value, Exercisable | $ 0 |
Stock-Based Compensation (Sum_2
Stock-Based Compensation (Summary of RSU Activity) (Details) - 2021 Omnibus Incentive Plan - Restricted Stock Units - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Shares | ||
Outstanding beginning balance (in shares) | 0 | |
Granted (in shares) | 1,727,406 | |
Vested (in shares) | 0 | |
Forfeited or Expired (in shares) | (1,120) | |
Outstanding ending balance (in shares) | 1,726,286 | 0 |
Weighted- Average Fair Value | ||
Outstanding beginning balance (in dollars per share) | $ 0 | |
Granted (in dollars per share) | 26.17 | |
Vested (in dollars per share) | 0 | |
Forfeited or Expired (In dollars per share) | 26.17 | |
Outstanding ending balance (in dollars per share) | $ 26.17 | $ 0 |
Aggregate intrinsic value, Outstanding | $ 43 | $ 0 |
Stock-Based Compensation (Sch_2
Stock-Based Compensation (Schedule of Additional RSU Activity) (Details) - Restricted Stock Units - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
2021 Omnibus Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total fair value of awards that vested | $ 0 | ||
Weighted average grant date fair value of awards (in dollars per share) | $ 26.17 | ||
2016 Omnibus Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total fair value of awards that vested | $ 0 | $ 8 | $ 12 |
Weighted average grant date fair value of awards (in dollars per share) | $ 0 | $ 12.18 | $ 18.66 |
Stock-Based Compensation (Sum_3
Stock-Based Compensation (Summary of the Total Compensation Expense and Associated Recognized Income Tax Benefits) (Details) - 2016 Omnibus Incentive Plan - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense (credit) | $ 3 | $ (2) | $ 18 |
Income tax provision (benefit) | (1) | 0 | (2) |
Total | $ 2 | $ (2) | $ 16 |
Stock-Based Compensation (Sum_4
Stock-Based Compensation (Summary of Non-Vested Stock Option Activity) (Details) | 12 Months Ended |
Dec. 31, 2021$ / sharesshares | |
2021 Omnibus Incentive Plan | |
Non-vested Shares | |
Granted (in shares) | shares | 3,682,215 |
Non-vested ending balance (in shares) | shares | 3,678,855 |
Weighted- Average Exercise Price | |
Granted (in dollars per share) | $ 26.17 |
2016 Omnibus Incentive Plan | |
Non-vested Shares | |
Non-vested beginning balance (in shares) | shares | 23,249 |
Granted (in shares) | shares | 0 |
Vested (in shares) | shares | 0 |
Forfeited or expired (in shares) | shares | (23,249) |
Non-vested ending balance (in shares) | shares | 0 |
Weighted- Average Exercise Price | |
Non-vested beginning balance (in dollars per share) | $ 18.07 |
Granted (in dollars per share) | 0 |
Vested (in dollars per share) | 0 |
Forfeited or expired (in dollars per share) | 18.07 |
Non-vested ending balance (in dollars per share) | 0 |
Weighted-Average Grant-Date Fair Value | |
Non-vested beginning balance (in dollars per share) | 9.06 |
Granted (in dollars per share) | 0 |
Vested (in dollars per share) | 0 |
Forfeited or expired (in dollars per share) | 9.06 |
Non-vested ending balance (in dollars per share) | $ 0 |
Stock-Based Compensation (Sch_3
Stock-Based Compensation (Schedule of Additional Stock Option Activity) (Details) - 2016 Omnibus Incentive Plan - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Aggregate intrinsic value of stock options exercised | $ 0 | $ 0 | $ 0 |
Cash received from the exercise of stock options | 0 | 0 | 0 |
Fair value of options that vested | 0 | 0 | 5 |
Tax benefit realized on exercise of stock options | $ 0 | $ 0 | $ 0 |
Stock-Based Compensation (Sum_5
Stock-Based Compensation (Summary of PSU, PSA, and RSU Activity) (Details) - 2016 Omnibus Incentive Plan - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Performance Stock Units and Performance Stock Awards | |||
Shares | |||
Outstanding beginning balance (in shares) | 1,813,305 | ||
Granted (in shares) | 0 | ||
Vested (in shares) | 0 | ||
Forfeited or Expired (in shares) | (1,813,305) | ||
Outstanding ending balance (in shares) | 0 | 1,813,305 | |
Weighted- Average Fair Value | |||
Outstanding beginning balance (in dollars per share) | $ 16.47 | ||
Granted (in dollars per share) | 0 | ||
Vested (in dollars per share) | 0 | ||
Forfeited or Expired (In dollars per share) | 16.47 | ||
Outstanding ending balance (in dollars per share) | $ 0 | $ 16.47 | |
Aggregate intrinsic value, Outstanding | $ 0 | $ 2 | |
Restricted Stock Units | |||
Shares | |||
Outstanding beginning balance (in shares) | 782,056 | ||
Granted (in shares) | 0 | ||
Vested (in shares) | 0 | ||
Forfeited or Expired (in shares) | (782,056) | ||
Outstanding ending balance (in shares) | 0 | 782,056 | |
Weighted- Average Fair Value | |||
Outstanding beginning balance (in dollars per share) | $ 15.11 | ||
Granted (in dollars per share) | 0 | $ 12.18 | $ 18.66 |
Vested (in dollars per share) | 0 | ||
Forfeited or Expired (In dollars per share) | 15.11 | ||
Outstanding ending balance (in dollars per share) | $ 0 | $ 15.11 | |
Aggregate intrinsic value, Outstanding | $ 0 | $ 1 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2021USD ($)lease | Dec. 31, 2020lease | |
Lessee, Lease, Description [Line Items] | ||
Remaining economic life of underlying asset | 75.00% | |
Economic life of underlying asset | 25.00% | |
Fair value of underlying asset | 90.00% | |
Off airport leases rejected | 278 | 359 |
Airport leases rejected | 34 | 66 |
Rent Abatement and Payment Deferrals | Restructuring Plan Impact of C O V I D19 | ||
Lessee, Lease, Description [Line Items] | ||
Decrease in rent expense from concessions, abatement and payment deferrals | $ | $ 300 | |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease terms | 1 month | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease terms | 35 years |
Leases (Operating Lease, Lease
Leases (Operating Lease, Lease Income) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Lessee, Lease, Description [Line Items] | |||
Revenue accounted for under Topic 842 | $ 7,165 | $ 4,989 | $ 9,417 |
Revenue accounted for under Topic 606 | 171 | 269 | 362 |
Total revenues | 7,336 | 5,258 | 9,779 |
Vehicle Rentals, Operating Lease | |||
Lessee, Lease, Description [Line Items] | |||
Revenue accounted for under Topic 842 | 6,885 | 4,320 | 8,579 |
Fleet Leasing, Operating Lease | |||
Lessee, Lease, Description [Line Items] | |||
Revenue accounted for under Topic 842 | 149 | 639 | 674 |
Variable, Operating Lease | |||
Lessee, Lease, Description [Line Items] | |||
Revenue accounted for under Topic 842 | $ 131 | $ 30 | $ 164 |
Leases (Operating Lease Costs)
Leases (Operating Lease Costs) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | |||
Short-term lease costs | $ 171 | $ 142 | $ 130 |
Operating lease costs | 449 | 527 | 545 |
Total | 620 | 669 | 675 |
Variable lease costs | 165 | 23 | 326 |
Lease, cost | $ 785 | $ 692 | $ 1,001 |
Leases (Weighted-average Remain
Leases (Weighted-average Remaining Lease Term and Weighted-average Discount Rate) (Details) | Dec. 31, 2021 |
Leases [Abstract] | |
Weighted-average remaining lease term (in years) | 11 years 9 months 18 days |
Weighted-average discount rate | 10.30% |
Leases (Lessee, Operating Lease
Leases (Lessee, Operating Lease, Liability, Maturity) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
2022 | $ 390 | |
2023 | 341 | |
2024 | 275 | |
2025 | 212 | |
2026 | 165 | |
After 2026 | 1,153 | |
Total lease payments | 2,536 | |
Interest | (1,026) | |
Operating lease liabilities as of December 31, 2021 | $ 1,510 | $ 1,636 |
Restructuring - Narrative (Deta
Restructuring - Narrative (Details) - Restructuring Plan Impact of C O V I D19 - employee | 1 Months Ended | 12 Months Ended |
Apr. 30, 2020 | Dec. 31, 2021 | |
Americas RAC segment | ||
Restructuring Cost and Reserve [Line Items] | ||
Number of positions eliminated | 11,000 | |
Other | Europe | International RAC | ||
Restructuring Cost and Reserve [Line Items] | ||
Number of positions eliminated | 900 |
Restructuring - Restructuring C
Restructuring - Restructuring Charges (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Restructuring Cost and Reserve [Line Items] | ||
Charges incurred | $ 32 | $ 37 |
Americas RAC segment | ||
Restructuring Cost and Reserve [Line Items] | ||
Charges incurred | 0 | 34 |
International RAC segment | ||
Restructuring Cost and Reserve [Line Items] | ||
Charges incurred | 32 | 0 |
Corporate operations | ||
Restructuring Cost and Reserve [Line Items] | ||
Charges incurred | 0 | 3 |
Direct vehicle and operating | ||
Restructuring Cost and Reserve [Line Items] | ||
Charges incurred | 16 | 25 |
Selling, general and administrative | ||
Restructuring Cost and Reserve [Line Items] | ||
Charges incurred | 16 | 12 |
Termination benefits | ||
Restructuring Cost and Reserve [Line Items] | ||
Charges incurred | 27 | 37 |
Lease and contract terminations | ||
Restructuring Cost and Reserve [Line Items] | ||
Charges incurred | 3 | 0 |
Facility closures | ||
Restructuring Cost and Reserve [Line Items] | ||
Charges incurred | $ 2 | $ 0 |
Restructuring - Accrued Liabili
Restructuring - Accrued Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning balance | $ 0 | $ 1 |
Charges incurred | 32 | 37 |
Cash payments | (32) | (29) |
Classified to liabilities subject to compromise | 0 | (4,965) |
Other | (3) | (2) |
Reclassified from liabilities subject to compromise | 7 | |
Restructuring reserve, ending balance | 4 | 0 |
Restructuring Plan Impact of C O V I D19 | ||
Restructuring Reserve [Roll Forward] | ||
Classified to liabilities subject to compromise | (7) | |
Termination Benefits | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning balance | 0 | 1 |
Charges incurred | 27 | 37 |
Cash payments | (32) | (29) |
Other | 0 | (2) |
Reclassified from liabilities subject to compromise | 7 | |
Restructuring reserve, ending balance | 2 | 0 |
Termination Benefits | Restructuring Plan Impact of C O V I D19 | ||
Restructuring Reserve [Roll Forward] | ||
Classified to liabilities subject to compromise | (7) | |
Other | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning balance | 0 | 0 |
Charges incurred | 5 | 0 |
Cash payments | 0 | 0 |
Other | (3) | 0 |
Reclassified from liabilities subject to compromise | 0 | |
Restructuring reserve, ending balance | $ 2 | 0 |
Other | Restructuring Plan Impact of C O V I D19 | ||
Restructuring Reserve [Roll Forward] | ||
Classified to liabilities subject to compromise | $ 0 |
Income Tax (Provision) Benefi_2
Income Tax (Provision) Benefit (Schedule of Components of Income Before Income Taxes) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Contingency [Line Items] | |||
Domestic | $ 710 | $ (1,692) | $ 28 |
Foreign | (27) | (360) | (15) |
Income (loss) before income taxes | 683 | (2,052) | 13 |
The Hertz Corporation | |||
Income Tax Contingency [Line Items] | |||
Domestic | 1,501 | (1,823) | 35 |
Foreign | (27) | (360) | (15) |
Income (loss) before income taxes | $ 1,474 | $ (2,183) | $ 20 |
Income Tax (Provision) Benefi_3
Income Tax (Provision) Benefit (Schedule of Total Provision for Taxes on Income) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current: | |||
Federal | $ 0 | $ 0 | $ 0 |
Foreign | 24 | 18 | 20 |
State and local | 21 | 4 | 16 |
Total current | 45 | 22 | 36 |
Deferred: | |||
Federal | 252 | (356) | 1 |
Foreign | 19 | 35 | (1) |
State and local | 2 | (30) | 27 |
Total deferred | 273 | (351) | 27 |
Total provision (benefit) | 318 | (329) | 63 |
The Hertz Corporation | |||
Deferred: | |||
Federal | 0 | 1 | 2 |
Total provision (benefit) | $ 318 | $ (328) | $ 65 |
Income Tax (Provision) Benefi_4
Income Tax (Provision) Benefit (Schedule of Principal Items of the U.S. and Foreign Net Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets: | ||
Employee benefit plans | $ 14 | $ 44 |
Net operating loss carry forwards | (1,321) | (825) |
Capital loss carryforwards | 167 | 3 |
Federal and state tax credit carry forwards | 64 | 55 |
Accrued and prepaid expenses | 195 | 124 |
Operating lease liabilities | 390 | 390 |
Total deferred tax assets | 2,151 | 1,441 |
Less: valuation allowance | (690) | (651) |
Total net deferred tax assets | 1,461 | 790 |
Deferred tax liabilities: | ||
Depreciation on tangible assets | (1,342) | (380) |
Intangible assets | (711) | (723) |
Operating lease right-of-use assets | (408) | (406) |
Total deferred tax liabilities | (2,461) | (1,509) |
Net deferred tax liability | (1,000) | (719) |
The Hertz Corporation | ||
Deferred tax assets: | ||
Net operating loss carry forwards | (3) | (5) |
Deferred tax liabilities: | ||
Net deferred tax liability | $ (1,003) | $ (724) |
Income Tax (Provision) Benefi_5
Income Tax (Provision) Benefit (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating Loss Carryforwards [Line Items] | ||||
Deferred tax assets | $ 1,321 | $ 825 | ||
Tax loss on restructuring | 1,300 | |||
Valuation allowance recorded against deferred tax assets | 690 | 651 | ||
Unrecognized tax benefits | 106 | 53 | $ 48 | $ 49 |
Unrecognized tax benefits that would impact effective tax rate | 35 | |||
Unrecognized tax benefits that would impact effective tax rate, net | 9 | |||
Net, after-tax interest and penalties accrued | 7 | $ 9 | ||
Donlen Corporation | ||||
Operating Loss Carryforwards [Line Items] | ||||
Capital gain on disposition | 600 | |||
Capital Loss Carryforward | ||||
Operating Loss Carryforwards [Line Items] | ||||
Tax credit carryforward, amount | 670 | |||
Domestic Tax Authority | ||||
Operating Loss Carryforwards [Line Items] | ||||
NOL carry forwards | 4,000 | |||
Deferred tax assets | 839 | |||
Tax credits | 28 | |||
Domestic Tax Authority | Capital Loss Carryforward | ||||
Operating Loss Carryforwards [Line Items] | ||||
Tax credit carryforward, amount | 141 | |||
State and Local Jurisdiction | ||||
Operating Loss Carryforwards [Line Items] | ||||
NOL carry forwards | 4,800 | |||
Deferred tax assets | 245 | |||
Tax credits | 35 | |||
Operating loss carryforwards, with indefinite utilization period | 1,000 | |||
Valuation allowance recorded against deferred tax assets | 171 | |||
Foreign Tax Authority | ||||
Operating Loss Carryforwards [Line Items] | ||||
NOL carry forwards | 1,000 | |||
Deferred tax assets | 239 | |||
Operating loss carryforwards, with indefinite utilization period | 911 | |||
NOL carry forward, valuation allowance | $ 239 |
Income Tax (Provision) Benefi_6
Income Tax (Provision) Benefit (Schedule of Significant Items in the Reconciliation of the Statutory and Effective Income Tax Rates) (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract] | |||
Statutory federal tax rate | 21.00% | 21.00% | 21.00% |
State and local income taxes, net of federal effect | 7.00% | 5.00% | (102.00%) |
Change in state rates, net of federal effect | 2.00% | 1.00% | (17.00%) |
Foreign tax rate differential | 0.00% | 0.00% | (31.00%) |
Change in foreign statutory rates | (2.00%) | 0.00% | 15.00% |
Federal and foreign permanent differences | 1.00% | 0.00% | (3.00%) |
Tax credits | (1.00%) | 0.00% | (75.00%) |
Withholding taxes | 1.00% | 0.00% | 62.00% |
Valuation allowance | 11.00% | (11.00%) | 591.00% |
Change in fair value of public warrants | 22.00% | 0.00% | 0.00% |
Non-deductible bankruptcy expenses | 15.00% | 0.00% | 0.00% |
European reorganization | (46.00%) | 0.00% | 0.00% |
Uncertain tax positions | 12.00% | 0.00% | 29.00% |
U.S. tax on foreign earnings | 2.00% | 0.00% | 0.00% |
Stock option shortfalls | 0.00% | 0.00% | 7.00% |
Other | 2.00% | 0.00% | 3.00% |
Effective tax rate | 47.00% | 16.00% | 500.00% |
The Hertz Corporation | |||
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract] | |||
Other | (25.00%) | (1.00%) | (174.00%) |
Effective tax rate | 22.00% | 15.00% | 326.00% |
Income Tax (Provision) Benefi_7
Income Tax (Provision) Benefit (Reconciliation of the Beginning and Ending Amounts of Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance as of January 1 | $ 53 | $ 48 | $ 49 |
Increase (decrease) attributable to tax positions taken during prior periods | 65 | 5 | 5 |
Increase (decrease) attributable to tax positions taken during the current year | 19 | 1 | 1 |
Decrease attributable to settlements with taxing authorities | (31) | (1) | (7) |
Balance as of December 31 | $ 106 | $ 53 | $ 48 |
Fair Value Measurements (Financ
Fair Value Measurements (Financial Instruments) (Details) - Recurring - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value of Financial Instruments [Abstract] | ||
Nominal Unpaid Principal Balance | $ 11,009 | $ 10,834 |
Aggregate Fair Value | 10,973 | 9,403 |
Non-vehicle | ||
Fair Value of Financial Instruments [Abstract] | ||
Nominal Unpaid Principal Balance | 3,055 | 4,747 |
Aggregate Fair Value | 3,065 | 3,382 |
Vehicle | ||
Fair Value of Financial Instruments [Abstract] | ||
Nominal Unpaid Principal Balance | 7,954 | 6,087 |
Aggregate Fair Value | $ 7,908 | $ 6,021 |
Fair Value Measurements (Cash E
Fair Value Measurements (Cash Equivalents and Investments) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Public warrants | $ 1,324 | $ 0 | |
Recurring | Cash equivalents and restricted cash equivalents | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash equivalents and restricted cash equivalents | 1,678 | 723 | |
Recurring | Cash equivalents and restricted cash equivalents | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash equivalents and restricted cash equivalents | 1,678 | 723 | |
Recurring | Cash equivalents and restricted cash equivalents | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash equivalents and restricted cash equivalents | 0 | 0 | |
Recurring | Cash equivalents and restricted cash equivalents | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash equivalents and restricted cash equivalents | 0 | 0 | |
Recurring | Public warrants | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Public warrants | 1,324 | 0 | |
Recurring | Public warrants | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Public warrants | 1,324 | 0 | |
Recurring | Public warrants | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Public warrants | 0 | $ 800 | 0 |
Recurring | Public warrants | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Public warrants | $ 0 | $ 0 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Warrants and Rights Outstanding | $ (1,324) | $ 0 | |
Change in fair value of Public Warrants | 627 | ||
Recurring | Public warrants | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Warrants and Rights Outstanding | (1,324) | 0 | |
Level 2 | Recurring | Public warrants | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Warrants and Rights Outstanding | $ 0 | $ (800) | $ 0 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | $ 93 | $ 1,888 |
Other comprehensive income (loss) before reclassification | (14) | (34) |
Amounts reclassified from accumulated other comprehensive income (loss) | 12 | 11 |
Ending balance | 2,977 | 93 |
Accumulated Other Comprehensive Income (Loss) | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | (212) | (189) |
Ending balance | (214) | (212) |
Pension and Other Post-Employment Benefits | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | (122) | (118) |
Other comprehensive income (loss) before reclassification | 22 | (15) |
Amounts reclassified from accumulated other comprehensive income (loss) | 12 | 11 |
Ending balance | (88) | (122) |
Foreign Currency Items | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | (71) | (52) |
Other comprehensive income (loss) before reclassification | (36) | (19) |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 |
Ending balance | (107) | (71) |
Unrealized Losses from Currency Translation Adjustments on Terminated Net Investment Hedges | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | (19) | (19) |
Other comprehensive income (loss) before reclassification | 0 | 0 |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 |
Ending balance | $ (19) | $ (19) |
Contingencies and Off-Balance_2
Contingencies and Off-Balance Sheet Commitments (Details) - USD ($) | Jul. 01, 2021 | Dec. 31, 2021 | Feb. 28, 2021 | Dec. 31, 2020 |
Loss Contingencies [Line Items] | ||||
Self-insured liabilities | $ 463,000,000 | $ 488,000,000 | ||
Bankruptcy claims, amount paid to settle claims | $ 250,000 | |||
Damages sought, value | $ 271,684,720 | |||
Net proceeds from repayment or recovery, percent | 15.00% | |||
New York | ||||
Loss Contingencies [Line Items] | ||||
Damages sought, value | $ 124,512,653 | |||
6.250% Senior Notes due October 2022 | ||||
Loss Contingencies [Line Items] | ||||
Interest rate | 6.25% | 6.25% | ||
5.500% Senior Notes due October 2024 | ||||
Loss Contingencies [Line Items] | ||||
Interest rate | 5.50% | |||
7.125% Senior Notes due August 2026 | ||||
Loss Contingencies [Line Items] | ||||
Interest rate | 7.125% | |||
6.000% Senior Notes due January 2028 | ||||
Loss Contingencies [Line Items] | ||||
Interest rate | 6.00% |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 3 Months Ended | |||||
Jun. 30, 2020 | Dec. 31, 2021 | May 31, 2021 | Dec. 31, 2020 | May 23, 2020 | Jun. 30, 2019 | |
Master Loan Agreement | ||||||
Related Party Transaction [Line Items] | ||||||
Related party expense | $ 133,000,000 | |||||
Master Loan Agreement | Hertz Holdings | ||||||
Related Party Transaction [Line Items] | ||||||
Debt face amount | $ 425,000,000 | |||||
Tax Related Liability | ||||||
Related Party Transaction [Line Items] | ||||||
Due from affiliates | $ 65,000,000 | $ 65,000,000 | ||||
Master Loan Agreement, Due May 2021 | ||||||
Related Party Transaction [Line Items] | ||||||
Due from affiliates | $ 1,000,000 | |||||
Master Loan Agreement, Due May 2021 | Hertz Holdings | ||||||
Related Party Transaction [Line Items] | ||||||
Debt face amount | $ 25,000,000 | |||||
Master Loan Agreement, Due May 2022 | ||||||
Related Party Transaction [Line Items] | ||||||
Due from affiliates | $ 25,000,000 |
Equity and Mezzanine Equity __2
Equity and Mezzanine Equity – Hertz Global (Narrative) (Details) $ / shares in Units, $ in Millions | Nov. 09, 2021USD ($)shares | Jun. 30, 2021USD ($)$ / sharesshares | Jul. 18, 2019shares | Jun. 12, 2019USD ($)shares | Dec. 31, 2021USD ($)vote$ / sharesshares | Dec. 31, 2021USD ($)vote$ / sharesshares | Jun. 18, 2020USD ($)shares | Feb. 17, 2022USD ($)$ / sharesshares | Dec. 31, 2021vote$ / sharesshares | Sep. 30, 2021USD ($)$ / shares | Dec. 31, 2021USD ($)vote$ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($) | Nov. 29, 2021USD ($) | Nov. 23, 2021$ / sharesshares | Jun. 15, 2021USD ($)shares | Jun. 30, 2020USD ($) | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||||||||||||
Common stock, shares authorized | shares | 1,000,000,000 | 400,000,000 | ||||||||||||||||
Preferred stock, shares authorized | shares | 100,000,000 | 40,000,000 | ||||||||||||||||
Common stock, shares outstanding | shares | 471,102,462 | 449,782,424 | 449,782,424 | 449,782,424 | 449,782,424 | 156,206,478 | ||||||||||||
Preferred stock, shares issued | shares | 1,500,000 | |||||||||||||||||
Preferred stock, shares outstanding | shares | 1,500,000 | |||||||||||||||||
Upfront discount and certain fees | 2.00% | |||||||||||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | |||||||||||||
Number of votes | vote | 1 | 1 | 1 | 1 | ||||||||||||||
Percentage of Successor Common Stock offered in Rights Offering | 35.00% | |||||||||||||||||
Proceeds from Rights Offering | $ 4 | $ 1,802 | $ 748 | |||||||||||||||
Stock issuance, net (in shares) | shares | 57,915,055 | |||||||||||||||||
Preferred stock, shares authorized | shares | 100,000,000 | |||||||||||||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | |||||||||||||||||
First dividend payment, period post anniversary of Effective Date | 6 months | |||||||||||||||||
Redemption price, multiple of invested capital with respect to shares being redeemed | 130.00% | |||||||||||||||||
Liquidation preference per share (in dollars per share) | $ / shares | $ 1,000 | $ 1,000 | $ 1,000 | $ 1,000 | ||||||||||||||
Repurchase of preferred stock | $ 1,883 | $ 0 | 0 | |||||||||||||||
Temporary equity redemption fees | 7 | |||||||||||||||||
Repurchase of preferred stock, net | (1,883) | |||||||||||||||||
Shares repurchased (in shares) | shares | 10,344,828 | 17,106,026 | ||||||||||||||||
Aggregate purchase price | [1] | 717 | ||||||||||||||||
Stock repurchase program, authorized amount | $ 2,000 | |||||||||||||||||
Average share repurchase price (in dollars per share) | $ / shares | $ 23.83 | |||||||||||||||||
Share repurchases | $ 408 | $ 654 | $ 0 | 0 | ||||||||||||||
Preferred stock, par value (in dollars per share) | $ / shares | 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | |||||||||||||
Stock issuance, net | $ 750 | $ 29 | ||||||||||||||||
Subsequent Event | ||||||||||||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||||||||||||
Shares repurchased (in shares) | shares | 20,589,620 | |||||||||||||||||
Average share repurchase price (in dollars per share) | $ / shares | $ 20.95 | |||||||||||||||||
Share repurchases | $ 431 | |||||||||||||||||
Common Stock Shares | ||||||||||||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||||||||||||
Common stock, shares subscribed but unissued | shares | 57,915,055 | |||||||||||||||||
Series A Preferred Stock | ||||||||||||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||||||||||||
Shares repurchased and retired (in shares) | shares | 1,500,000 | |||||||||||||||||
Preferred stock, dividend rate, percentage | 9.00% | |||||||||||||||||
Number of shares authorized to be repurchased | shares | 1,500,000 | |||||||||||||||||
Share price (in dollars per share) | $ / shares | $ 1,250 | $ 1,250 | $ 1,250 | $ 1,250 | $ 1,250 | |||||||||||||
Repurchase of preferred stock | $ 1,900 | |||||||||||||||||
Plan of Reorganization | Public warrants | ||||||||||||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||||||||||||
Stock issuance, net (in shares) | shares | 89,049,029 | |||||||||||||||||
Apollo | ||||||||||||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||||||||||||
Purchase of preferred stock | $ 1,500 | |||||||||||||||||
Preferred stock, stated value (in dollars per share) | $ / shares | $ 1,000 | |||||||||||||||||
Apollo | Series A Preferred Stock | ||||||||||||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||||||||||||
Preferred stock issuance, net (in shares) | shares | 1,500,000 | |||||||||||||||||
Common Stock Shares | ||||||||||||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||||||||||||
Proceeds from Rights Offering | $ 2 | |||||||||||||||||
Stock issuance, net (in shares) | shares | 14,000,000 | |||||||||||||||||
Shares repurchased (in shares) | shares | [1] | 27,000,000 | ||||||||||||||||
Stock issuance, net | $ 1 | |||||||||||||||||
Common Stock Shares | Eligible Investors | ||||||||||||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||||||||||||
Subscriptions to purchase equity in Successor Company (in shares) | shares | 127,362,114 | |||||||||||||||||
Purchase of common stock | $ 1,600 | |||||||||||||||||
Purchase price (in usd per share) | $ / shares | $ 10 | $ 10 | ||||||||||||||||
Subscriptions to purchase equity in Successor Company | $ 1,300 | |||||||||||||||||
Common Stock Shares | Backstop Parties | ||||||||||||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||||||||||||
Subscriptions to purchase equity in Successor Company (in shares) | shares | 36,137,887 | |||||||||||||||||
Subscriptions to purchase equity in Successor Company | $ 361 | |||||||||||||||||
Backstop fee | $ 164 | |||||||||||||||||
Common Stock Shares | Plan Sponsors | ||||||||||||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||||||||||||
Number of shares issued | shares | 277,119,438 | |||||||||||||||||
Common Stock Shares | Existing Shareholders | ||||||||||||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||||||||||||
Number of shares issued | shares | 14,133,024 | |||||||||||||||||
Common Stock Shares | Eligible Investors and Backstop Parties (Equity Commitment Parties) | ||||||||||||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||||||||||||
Value of shares issued | $ 4,700 | |||||||||||||||||
Common Stock Shares | Eligible Investors | ||||||||||||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||||||||||||
Subscriptions to purchase equity in Successor Company (in shares) | shares | 127,362,114 | |||||||||||||||||
Common Stock Shares | Backstop Parties | ||||||||||||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||||||||||||
Number of shares issued | shares | 52,487,886 | |||||||||||||||||
Additional Paid-In Capital | ||||||||||||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||||||||||||
Proceeds from Rights Offering | $ 1,800 | $ 748 | ||||||||||||||||
Repurchase of preferred stock, net | (450) | |||||||||||||||||
Aggregate purchase price | [1] | $ 9 | ||||||||||||||||
Stock issuance, net | $ 28 | $ 28 | ||||||||||||||||
NASDAQ Listing | ||||||||||||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||||||||||||
Stock issuance, net (in shares) | shares | 44,520,000 | |||||||||||||||||
Aggregate purchase price | $ 300 | |||||||||||||||||
ATM Program | ||||||||||||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||||||||||||
Stock issuance, net (in shares) | shares | 13,912,368 | |||||||||||||||||
Stock issuance, net | $ 28 | |||||||||||||||||
Common stock, value, subscriptions | $ 500 | |||||||||||||||||
[1] | See Registration Status of Stock Issued on the Effective Date and Nasdaq Listing and Share Repurchase Program for Common Stock in Note 16, "Equity and Mezzanine Equity – Hertz Global." |
Earnings (Loss) Per Common Sh_3
Earnings (Loss) Per Common Share – Hertz Global (Details) - USD ($) $ / shares in Units, $ in Millions | Jul. 18, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Numerator: | ||||
Net income (loss) attributable to Hertz Global | $ 366 | $ (1,714) | $ (58) | |
Net income (loss) available to Hertz Global common stockholders | $ (84) | $ (1,714) | $ (58) | |
Denominator: | ||||
Basic weighted-average shares outstanding (in shares) | 315,000,000 | 150,000,000 | 117,000,000 | |
Basic weighted-average shares outstanding (in shares) | 84,000,000 | |||
2019 Rights Offering adjustment (in shares) | 0 | 0 | 33,000,000 | |
Diluted (in shares) | 315,000,000 | 150,000,000 | 117,000,000 | |
Antidilutive stock options, RSUs, PSUs, and PSAs (in shares) | 15,000,000 | 2,000,000 | 2,000,000 | |
Earnings (loss) per common share: | ||||
Basic earnings (loss) per share (in dollars per share) | $ (0.27) | $ (11.44) | $ (0.49) | |
Diluted earnings (loss) per share (in dollars per share) | $ (0.27) | $ (11.44) | $ (0.49) | |
Rights offering, net (in shares) | 57,915,055 | |||
Public warrants | ||||
Denominator: | ||||
Antidilutive stock options, RSUs, PSUs, and PSAs (in shares) | 14,000,000 | 0 | 0 | |
Stock options, RSUs, PSUs and PSAs | ||||
Denominator: | ||||
Antidilutive stock options, RSUs, PSUs, and PSAs (in shares) | 1,000,000 | 2,000,000 | 2,000,000 | |
Series A Preferred Stock | ||||
Numerator: | ||||
Series A Preferred Stock deemed dividends | $ (450) | $ 0 | $ 0 |
Public Warrants _ Hertz Global
Public Warrants – Hertz Global - Narrative (Details) - $ / shares | Jun. 30, 2021 | Jul. 18, 2019 | Dec. 31, 2021 |
Class of Warrant or Right [Line Items] | |||
Stock issuance, net (in shares) | 57,915,055 | ||
Exercise price of warrants (in dollars per share) | $ 13.80 | ||
Warrants exercised (in shares) | 6,040,280 | ||
Warrants exercised, cashless (in shares) | 428,102 | ||
Warrants exercised, cash (in shares) | 5,612,178 | ||
Plan of Reorganization | |||
Class of Warrant or Right [Line Items] | |||
Exercise price of warrants (in dollars per share) | $ 13.80 | ||
Percentage of aggregate number of shares purchase limit | 18.00% | ||
Number of shares called by warrant | 1 | ||
Warrant term | 30 years | ||
Plan of Reorganization | Public warrants | |||
Class of Warrant or Right [Line Items] | |||
Stock issuance, net (in shares) | 89,049,029 |
Segment Information (Reportable
Segment Information (Reportable Segments to Consolidated) (Details) $ in Millions | Jun. 12, 2019USD ($) | Jun. 18, 2020USD ($) | Dec. 31, 2021USD ($)segment | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | ||||||
Number of reportable segments | segment | 2 | |||||
Revenues | $ 7,336 | $ 5,258 | $ 9,779 | |||
Depreciation of revenue earning vehicles and lease charges | 497 | 2,030 | 2,563 | |||
Depreciation and amortization, non-vehicle assets | 196 | 225 | 203 | |||
Interest expense, net | 469 | 608 | 805 | |||
Adjusted EBITDA | 2,130 | (995) | 649 | |||
Revenue earning vehicles, net | 9,226 | 6,062 | ||||
Property and equipment, net | 608 | 666 | ||||
Total assets | [1] | 19,783 | 16,908 | |||
Revenue earning vehicles, net | 238 | 37 | ||||
Assets held for sale | 0 | 1,811 | ||||
Stock issued amount | $ 750 | 29 | ||||
Assets, Including Assets Held-For-Sale | ||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | ||||||
Revenue earning vehicles, net | 7,494 | |||||
Property and equipment, net | 672 | |||||
ATM Program | ||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | ||||||
Stock issued amount | $ 28 | |||||
U.S. plan | ||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | ||||||
Revenues | 6,186 | 4,271 | 7,596 | |||
Revenue earning vehicles, net | 7,639 | 4,974 | ||||
Property and equipment, net | 527 | 570 | ||||
Total assets | 16,174 | 13,732 | ||||
International | ||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | ||||||
Revenues | 1,150 | 987 | 2,183 | |||
Revenue earning vehicles, net | 1,587 | 1,088 | ||||
Property and equipment, net | 81 | 96 | ||||
Total assets | 3,609 | 3,176 | ||||
The Hertz Corporation | ||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | ||||||
Revenues | 7,336 | 5,258 | 9,779 | |||
Depreciation of revenue earning vehicles and lease charges | 497 | 2,030 | 2,563 | |||
Depreciation and amortization, non-vehicle assets | 196 | 225 | 203 | |||
Interest expense, net | 469 | 606 | 798 | |||
Adjusted EBITDA | 2,130 | (995) | 649 | |||
Revenue earning vehicles, net | 9,226 | 6,062 | ||||
Property and equipment, net | 608 | 666 | ||||
Total assets | [2] | 19,780 | 16,880 | |||
Revenue earning vehicles, net | 1,400 | |||||
Assets held for sale | 0 | 1,811 | ||||
The Hertz Corporation | Variable Interest Entity, Primary Beneficiary | ||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | ||||||
Total assets | 734 | 511 | ||||
The Hertz Corporation | Donlen Corporation | ||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | ||||||
Revenue earning vehicles, net | 1,432 | |||||
Property and equipment, net | 6 | |||||
Assets held for sale | 1,811 | |||||
The Hertz Corporation | U.S. plan | ||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | ||||||
Total assets | (3) | (28) | ||||
Assets held for sale | 1,800 | |||||
The Hertz Corporation | International | ||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | ||||||
Assets held for sale | 48 | |||||
All Other Operations | ||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | ||||||
Revenues | 136 | 630 | 672 | |||
Depreciation of revenue earning vehicles and lease charges | 0 | 435 | 469 | |||
Depreciation and amortization, non-vehicle assets | 2 | 10 | 10 | |||
Interest expense, net | 13 | 40 | 31 | |||
Adjusted EBITDA | 13 | 93 | 100 | |||
Revenue earning vehicles, net | 0 | 1,432 | ||||
Property and equipment, net | 0 | 6 | ||||
Total assets | 0 | 1,818 | ||||
Revenue earning vehicles and non-vehicle capital assets | ||||||
Expenditures | (155) | (615) | (1,043) | |||
Proceeds from disposals | 70 | 335 | 352 | |||
Net expenditures - Hertz Global and Hertz | (85) | (280) | (691) | |||
All Other Operations | The Hertz Corporation | ||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | ||||||
Adjusted EBITDA | 13 | 93 | 100 | |||
Operating Segments | ||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | ||||||
Revenues | 7,200 | 4,628 | 9,107 | |||
Depreciation of revenue earning vehicles and lease charges | 497 | 1,595 | 2,094 | |||
Depreciation and amortization, non-vehicle assets | 182 | 201 | 179 | |||
Interest expense, net | 260 | 339 | 250 | |||
Adjusted EBITDA | 2,263 | (1,039) | 627 | |||
Revenue earning vehicles, net | 9,226 | 6,062 | ||||
Property and equipment, net | 516 | 568 | ||||
Total assets | 17,330 | 13,998 | ||||
Operating Segments | The Hertz Corporation | ||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | ||||||
Adjusted EBITDA | 2,263 | (1,039) | 627 | |||
Operating Segments | Americas RAC segment | ||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | ||||||
Revenues | 6,215 | 3,756 | 7,208 | |||
Depreciation of revenue earning vehicles and lease charges | 343 | 1,352 | 1,706 | |||
Depreciation and amortization, non-vehicle assets | 166 | 182 | 159 | |||
Interest expense, net | 198 | 259 | 166 | |||
Adjusted EBITDA | 2,173 | (810) | 512 | |||
Revenue earning vehicles, net | 7,897 | 5,120 | ||||
Property and equipment, net | 449 | 490 | ||||
Total assets | 14,352 | 11,337 | ||||
Revenue earning vehicles and non-vehicle capital assets | ||||||
Expenditures | (5,935) | (4,059) | (9,790) | |||
Proceeds from disposals | 2,137 | 7,965 | 6,643 | |||
Net expenditures - Hertz Global and Hertz | (3,798) | 3,906 | (3,147) | |||
Operating Segments | Americas RAC segment | The Hertz Corporation | ||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | ||||||
Adjusted EBITDA | 2,173 | (810) | 512 | |||
Operating Segments | International RAC segment | ||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | ||||||
Revenues | 985 | 872 | 1,899 | |||
Depreciation of revenue earning vehicles and lease charges | 154 | 243 | 388 | |||
Depreciation and amortization, non-vehicle assets | 16 | 19 | 20 | |||
Interest expense, net | 62 | 80 | 84 | |||
Adjusted EBITDA | 90 | (229) | 115 | |||
Revenue earning vehicles, net | 1,329 | 942 | ||||
Property and equipment, net | 67 | 78 | ||||
Total assets | 2,978 | 2,661 | ||||
Revenue earning vehicles and non-vehicle capital assets | ||||||
Expenditures | (1,123) | (930) | (2,995) | |||
Proceeds from disposals | 626 | 1,855 | 2,517 | |||
Net expenditures - Hertz Global and Hertz | (497) | 925 | (478) | |||
Operating Segments | International RAC segment | The Hertz Corporation | ||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | ||||||
Adjusted EBITDA | 90 | (229) | 115 | |||
Corporate | ||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | ||||||
Depreciation and amortization, non-vehicle assets | 12 | 14 | 14 | |||
Interest expense, net | 196 | 229 | 524 | |||
Adjusted EBITDA | (146) | (49) | (78) | |||
Property and equipment, net | 92 | 98 | ||||
Total assets | 2,453 | 1,092 | ||||
Revenue earning vehicles and non-vehicle capital assets | ||||||
Expenditures | (12) | (36) | (110) | |||
Proceeds from disposals | 1 | 3 | 1 | |||
Net expenditures - Hertz Global and Hertz | (11) | (33) | (109) | |||
Corporate | The Hertz Corporation | ||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | ||||||
Interest expense, net | 0 | (2) | (7) | |||
Adjusted EBITDA | (146) | (49) | $ (78) | |||
Total assets | $ (3) | $ (28) | ||||
[1] | Hertz Global Holdings, Inc.'s consolidated total assets as of December 31, 2021 and December 31, 2020 included total assets of variable interest entities ("VIEs") of $734 million and $511 million, respectively, which can only be used to settle obligations of the VIEs. Hertz Global Holdings, Inc.'s consolidated total liabilities as of December 31, 2021 and December 31, 2020 included total liabilities of VIEs of $733 million and $475 million, respectively, for which the creditors of the VIEs have no recourse to Hertz Global Holdings, Inc. See "Pledges Related to Vehicle Financing" in Note 6, "Debt," and "Termination of 767 Auto Leasing Agreement" in Note 3, "Divestitures," for further information. | |||||
[2] | The Hertz Corporation's consolidated total assets as of December 31, 2021 and December 31, 2020 included total assets of VIEs of $734 million and $511 million, respectively, which can only be used to settle obligations of the VIEs. The Hertz Corporation's consolidated total liabilities as of December 31, 2021 and December 31, 2020 included total liabilities of VIEs of $733 million and $475 million, respectively, for which the creditors of the VIEs have no recourse to The Hertz Corporation. See "Pledges Related to Vehicle Financing" in Note 6, "Debt," and "Termination of 767 Auto Leasing Agreement" in Note 3, "Divestitures," for further information. |
Segment Information (Pre-tax In
Segment Information (Pre-tax Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue earning equipment | ||||
Adjusted EBITDA | $ 2,130 | $ (995) | $ 649 | |
Income (loss) before income taxes | 683 | (2,052) | 13 | |
Loss on extinguishment of debt | 8 | 5 | 43 | |
Restructuring and restructuring related charges | ||||
Revenue earning equipment | ||||
Income (loss) before income taxes | (76) | (64) | (14) | |
Technology-related intangible and other asset impairments | ||||
Revenue earning equipment | ||||
Income (loss) before income taxes | 0 | (213) | 0 | |
Information technology and finance transformation costs | ||||
Revenue earning equipment | ||||
Income (loss) before income taxes | (12) | (42) | (114) | |
Reorganization items, net | ||||
Revenue earning equipment | ||||
Income (loss) before income taxes | (677) | (175) | 0 | |
Pre-reorganization charges and non-debtor financing charges | ||||
Revenue earning equipment | ||||
Income (loss) before income taxes | (42) | (109) | 0 | |
Gain from the Donlen Sale | ||||
Revenue earning equipment | ||||
Income (loss) before income taxes | 400 | 0 | 0 | |
Change in fair value of Public Warrants | ||||
Revenue earning equipment | ||||
Income (loss) before income taxes | (627) | 0 | 0 | |
Other items | ||||
Revenue earning equipment | ||||
Income (loss) before income taxes | 40 | (21) | 44 | |
Americas RAC segment | ||||
Revenue earning equipment | ||||
Impairment of indefinite-lived intangible assets | $ 193 | |||
Americas RAC segment | Technology-related intangibles | ||||
Revenue earning equipment | ||||
Impairment of indefinite-lived intangible assets | 193 | |||
Americas RAC segment | Tradenames | ||||
Revenue earning equipment | ||||
Impairment of indefinite-lived intangible assets | 20 | |||
All Other Operations | ||||
Revenue earning equipment | ||||
Adjusted EBITDA | 13 | 93 | 100 | |
Operating Segments | ||||
Revenue earning equipment | ||||
Adjusted EBITDA | 2,263 | (1,039) | 627 | |
Operating Segments | Americas RAC segment | ||||
Revenue earning equipment | ||||
Adjusted EBITDA | 2,173 | (810) | 512 | |
Operating Segments | International RAC segment | ||||
Revenue earning equipment | ||||
Adjusted EBITDA | 90 | (229) | 115 | |
Corporate | ||||
Revenue earning equipment | ||||
Adjusted EBITDA | (146) | (49) | (78) | |
The Hertz Corporation | ||||
Revenue earning equipment | ||||
Adjusted EBITDA | 2,130 | (995) | 649 | |
Income (loss) before income taxes | 1,474 | (2,183) | 20 | |
Loss on extinguishment of debt | 8 | 5 | 43 | |
The Hertz Corporation | HIL Credit Agreement | ||||
Revenue earning equipment | ||||
Loss on extinguishment of debt | 8 | |||
The Hertz Corporation | Donlen Canadian Securitization | ||||
Revenue earning equipment | ||||
Gain on sale of assets | 16 | |||
The Hertz Corporation | Restructuring and restructuring related charges | ||||
Revenue earning equipment | ||||
Income (loss) before income taxes | (76) | (64) | (14) | |
The Hertz Corporation | Technology-related intangible and other asset impairments | ||||
Revenue earning equipment | ||||
Income (loss) before income taxes | 0 | (213) | 0 | |
The Hertz Corporation | Write-off of intercompany loan | ||||
Revenue earning equipment | ||||
Income (loss) before income taxes | 0 | (133) | 0 | |
The Hertz Corporation | Information technology and finance transformation costs | ||||
Revenue earning equipment | ||||
Income (loss) before income taxes | (12) | (42) | (114) | |
The Hertz Corporation | Reorganization items, net | ||||
Revenue earning equipment | ||||
Income (loss) before income taxes | (513) | (175) | 0 | |
The Hertz Corporation | Pre-reorganization charges and non-debtor financing charges | ||||
Revenue earning equipment | ||||
Income (loss) before income taxes | (42) | (109) | 0 | |
The Hertz Corporation | Gain from the Donlen Sale | ||||
Revenue earning equipment | ||||
Income (loss) before income taxes | 400 | 0 | 0 | |
The Hertz Corporation | Other items | ||||
Revenue earning equipment | ||||
Income (loss) before income taxes | 40 | (21) | 44 | |
Professional fees | 17 | |||
Unsecured claim settlement fees | 14 | |||
Marketable securities gain | 30 | |||
The Hertz Corporation | Other items | Donlen Corporation | ||||
Revenue earning equipment | ||||
Income (loss) before income taxes | 100 | |||
The Hertz Corporation | All Other Operations | ||||
Revenue earning equipment | ||||
Adjusted EBITDA | 13 | 93 | 100 | |
The Hertz Corporation | Operating Segments | ||||
Revenue earning equipment | ||||
Adjusted EBITDA | 2,263 | (1,039) | 627 | |
The Hertz Corporation | Operating Segments | Americas RAC segment | ||||
Revenue earning equipment | ||||
Adjusted EBITDA | 2,173 | (810) | 512 | |
The Hertz Corporation | Operating Segments | International RAC segment | ||||
Revenue earning equipment | ||||
Adjusted EBITDA | 90 | (229) | 115 | |
The Hertz Corporation | Corporate | ||||
Revenue earning equipment | ||||
Adjusted EBITDA | (146) | (49) | (78) | |
Vehicle Damages | The Hertz Corporation | Other items | ||||
Revenue earning equipment | ||||
Losses associated with certain vehicle damages | 18 | |||
Non-vehicle | Non-vehicle depreciation and amortization | ||||
Revenue earning equipment | ||||
Income (loss) before income taxes | (196) | (225) | (203) | |
Non-vehicle | Debt charges | ||||
Revenue earning equipment | ||||
Income (loss) before income taxes | (185) | (153) | (311) | |
Non-vehicle | The Hertz Corporation | ||||
Revenue earning equipment | ||||
Gain on sale of assets | 39 | |||
Non-vehicle | The Hertz Corporation | Non-vehicle depreciation and amortization | ||||
Revenue earning equipment | ||||
Income (loss) before income taxes | (196) | (225) | (203) | |
Non-vehicle | The Hertz Corporation | Debt charges | ||||
Revenue earning equipment | ||||
Income (loss) before income taxes | (185) | (151) | (304) | |
Vehicle | Debt charges | ||||
Revenue earning equipment | ||||
Income (loss) before income taxes | (72) | (55) | (38) | |
Vehicle | The Hertz Corporation | Debt charges | ||||
Revenue earning equipment | ||||
Income (loss) before income taxes | $ (72) | $ (55) | $ (38) |
Liabilities Subject to Compro_3
Liabilities Subject to Compromise (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | |
Reorganization, Chapter 11 [Line Items] | ||||
Accounts payable | $ 267 | |||
Accrued liabilities | 166 | |||
Accrued taxes, net | 19 | |||
Accrued interest on debt subject to compromise | 70 | |||
Debt subject to compromise | 4,443 | |||
Liabilities subject to compromise | $ 0 | 4,965 | ||
Accounts payable | 572 | 418 | ||
Accrued liabilities | 863 | 759 | ||
Accrued taxes, net | 157 | 121 | ||
Liabilities reinstated | [1] | 16,806 | 16,815 | |
Reinstatement from Liabilities Subject to Compromise | ||||
Reorganization, Chapter 11 [Line Items] | ||||
Accounts payable | $ 257 | |||
Accrued liabilities | 99 | |||
Accrued taxes, net | 14 | |||
Liabilities reinstated | 370 | |||
Restructuring and Restructuring Related Charges | Pension Benefits | ||||
Reorganization, Chapter 11 [Line Items] | ||||
Liabilities subject to compromise | 24 | |||
The Hertz Corporation | ||||
Reorganization, Chapter 11 [Line Items] | ||||
Due from Hertz | 65 | |||
Liabilities subject to compromise | 0 | 5,030 | ||
Accounts payable | 572 | 418 | ||
Accrued liabilities | 809 | 759 | ||
Accrued taxes, net | 157 | 121 | ||
Liabilities reinstated | [2] | $ 15,430 | $ 16,885 | |
The Hertz Corporation | Reinstatement from Liabilities Subject to Compromise | ||||
Reorganization, Chapter 11 [Line Items] | ||||
Due to Hertz | 65 | |||
Liabilities reinstated | $ 435 | |||
[1] | Hertz Global Holdings, Inc.'s consolidated total assets as of December 31, 2021 and December 31, 2020 included total assets of variable interest entities ("VIEs") of $734 million and $511 million, respectively, which can only be used to settle obligations of the VIEs. Hertz Global Holdings, Inc.'s consolidated total liabilities as of December 31, 2021 and December 31, 2020 included total liabilities of VIEs of $733 million and $475 million, respectively, for which the creditors of the VIEs have no recourse to Hertz Global Holdings, Inc. See "Pledges Related to Vehicle Financing" in Note 6, "Debt," and "Termination of 767 Auto Leasing Agreement" in Note 3, "Divestitures," for further information. | |||
[2] | The Hertz Corporation's consolidated total assets as of December 31, 2021 and December 31, 2020 included total assets of VIEs of $734 million and $511 million, respectively, which can only be used to settle obligations of the VIEs. The Hertz Corporation's consolidated total liabilities as of December 31, 2021 and December 31, 2020 included total liabilities of VIEs of $733 million and $475 million, respectively, for which the creditors of the VIEs have no recourse to The Hertz Corporation. See "Pledges Related to Vehicle Financing" in Note 6, "Debt," and "Termination of 767 Auto Leasing Agreement" in Note 3, "Divestitures," for further information. |
Reorganization Items, Net - Sch
Reorganization Items, Net - Schedule of Reorganization Items, Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reorganization, Chapter 11 [Line Items] | |||
Professional fees and other bankruptcy related costs | $ 257 | $ 175 | |
Loss on extinguishment of debt | 191 | 0 | |
Backstop fee | 164 | 0 | |
Breakup fee | 77 | 0 | |
Contract settlements | 25 | 0 | |
Cancellation of share-based compensation grants | (10) | 0 | |
Net gain on settlement of liabilities subject to compromise | (22) | 0 | |
Other, net | (5) | 0 | |
Reorganization items, net | 677 | 175 | $ 0 |
The Hertz Corporation | |||
Reorganization, Chapter 11 [Line Items] | |||
Professional fees and other bankruptcy related costs | 257 | 175 | |
Loss on extinguishment of debt | 191 | 0 | |
Breakup fee | 77 | 0 | |
Contract settlements | 25 | 0 | |
Cancellation of share-based compensation grants | (10) | 0 | |
Net gain on settlement of liabilities subject to compromise | (22) | 0 | |
Other, net | (5) | 0 | |
Reorganization items, net | $ 513 | $ 175 | $ 0 |
Reorganization Items, Net - Nar
Reorganization Items, Net - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Reorganization, Chapter 11 [Line Items] | ||
Payments for reorganization | $ 485 | $ 102 |
Accounts payable | ||
Reorganization, Chapter 11 [Line Items] | ||
Unpaid reorganization charges | $ 25 | 19 |
Accrued liabilities | ||
Reorganization, Chapter 11 [Line Items] | ||
Unpaid reorganization charges | $ 46 |
SCHEDULE I CONDENSED FINANCIA_2
SCHEDULE I CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Balance Sheet) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||||
ASSETS | ||||||||
Cash and cash equivalents | $ 2,258 | $ 1,096 | ||||||
Total cash, cash equivalents, restricted cash and restricted cash equivalents | 2,651 | [1] | 1,507 | $ 1,360 | [1] | $ 1,410 | [1] | |
Non-vehicle receivables, net of allowance | 758 | 777 | ||||||
Prepaid expenses and other assets | 1,017 | 373 | ||||||
Total assets | [2] | 19,783 | 16,908 | |||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Accrued liabilities | 863 | 759 | ||||||
Public Warrants | 1,324 | 0 | ||||||
Total liabilities | [2] | 16,806 | 16,815 | |||||
Stockholder's equity (deficit): | ||||||||
Preferred stock, $0.01 par value, no shares issued and outstanding | 0 | 0 | ||||||
Common stock, $0.01 par value, 477,233,278 and 158,235,410 shares issued, respectively and 449,782,424 and 156,206,478 shares outstanding, respectively | 5 | 2 | ||||||
Additional paid-in capital | 6,209 | 3,047 | ||||||
Accumulated deficit | (2,315) | (2,681) | ||||||
Accumulated other comprehensive income (loss) | (214) | (212) | ||||||
Treasury stock, at cost, 27,450,854 and 2,028,932 common shares as of December 31, 2021 and 2020, respectively | (708) | (100) | ||||||
Stockholder's equity (deficit) attributable to Hertz | 2,977 | 56 | ||||||
Total liabilities and stockholder's equity (deficit) | 19,783 | 16,908 | ||||||
Hertz Global Holdings | ||||||||
ASSETS | ||||||||
Cash and cash equivalents | 1 | 0 | ||||||
Restricted cash and restricted cash equivalents | 0 | 28 | ||||||
Total cash, cash equivalents, restricted cash and restricted cash equivalents | 1 | 28 | $ 0 | $ 0 | ||||
Non-vehicle receivables, net of allowance | 1 | 0 | ||||||
Prepaid expenses and other assets | 1 | 1 | ||||||
Investments in subsidiaries, net | 4,350 | 0 | ||||||
Deferred income taxes, net | 2 | 5 | ||||||
Due from Hertz Holdings | 0 | 65 | ||||||
Total assets | 4,355 | 99 | ||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Accrued liabilities | 54 | 0 | ||||||
Public Warrants | 1,324 | 0 | ||||||
Due to Hertz | 0 | 1 | ||||||
Investments in subsidiaries, net | 0 | 42 | ||||||
Total liabilities | 1,378 | 43 | ||||||
Stockholder's equity (deficit): | ||||||||
Preferred stock, $0.01 par value, no shares issued and outstanding | 0 | 0 | ||||||
Common stock, $0.01 par value, 477,233,278 and 158,235,410 shares issued, respectively and 449,782,424 and 156,206,478 shares outstanding, respectively | 5 | 2 | ||||||
Additional paid-in capital | 6,209 | 3,047 | ||||||
Accumulated deficit | (2,315) | (2,681) | ||||||
Accumulated other comprehensive income (loss) | (214) | (212) | ||||||
Equity before treasury stock | 3,685 | 156 | ||||||
Treasury stock, at cost, 27,450,854 and 2,028,932 common shares as of December 31, 2021 and 2020, respectively | (708) | (100) | ||||||
Stockholder's equity (deficit) attributable to Hertz | 2,977 | 56 | ||||||
Total liabilities and stockholder's equity (deficit) | $ 4,355 | $ 99 | ||||||
[1] | Amounts include cash and cash equivalents and restricted cash and cash equivalents which were held for sale as of December 31, 2020, prior to the completion of the Donlen Sale in the first quarter of 2021, as described in Note 3 , " Divestitures." | |||||||
[2] | Hertz Global Holdings, Inc.'s consolidated total assets as of December 31, 2021 and December 31, 2020 included total assets of variable interest entities ("VIEs") of $734 million and $511 million, respectively, which can only be used to settle obligations of the VIEs. Hertz Global Holdings, Inc.'s consolidated total liabilities as of December 31, 2021 and December 31, 2020 included total liabilities of VIEs of $733 million and $475 million, respectively, for which the creditors of the VIEs have no recourse to Hertz Global Holdings, Inc. See "Pledges Related to Vehicle Financing" in Note 6, "Debt," and "Termination of 767 Auto Leasing Agreement" in Note 3, "Divestitures," for further information. |
SCHEDULE I CONDENSED FINANCIA_3
SCHEDULE I CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Balance Sheet) (Parentheticals) (Details) - $ / shares | Dec. 31, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Condensed Financial Statements, Captions [Line Items] | |||
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 | 477,233,278 | 158,235,410 | |
Common stock, shares outstanding | 449,782,424 | 471,102,462 | 156,206,478 |
Treasury stock, shares | 27,450,854 | 2,028,932 | |
Hertz Global Holdings | |||
Condensed Financial Statements, Captions [Line Items] | |||
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 | 477,233,278 | 158,235,410 | |
Common stock, shares outstanding | 449,782,424 | 156,206,478 | |
Treasury stock, shares | 27,450,854 | 2,028,932 |
SCHEDULE I CONDENSED FINANCIA_4
SCHEDULE I CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Statements of Operations) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Condensed Financial Statements, Captions [Line Items] | |||
Total revenues | $ 7,336 | $ 5,258 | $ 9,779 |
Expenses: | |||
Interest expense, net | 469 | 608 | 805 |
Reorganization items, net | 314 | 8 | 0 |
Change in fair value of Public Warrants | 627 | 0 | 0 |
Total expenses | 6,653 | 7,310 | 9,766 |
Income (loss) before income taxes | 683 | (2,052) | 13 |
Income tax (provision) benefit | (318) | 329 | (63) |
Net income (loss) | 365 | (1,723) | (50) |
Net income (loss) available to Hertz Global common stockholders | (84) | (1,714) | (58) |
Series A Preferred Stock | |||
Expenses: | |||
Series A Preferred Stock deemed dividends | (450) | 0 | 0 |
Hertz Global Holdings | |||
Condensed Financial Statements, Captions [Line Items] | |||
Total revenues | 0 | 0 | 0 |
Expenses: | |||
Interest expense, net | 0 | 2 | 7 |
Write-off of intercompany loan | 0 | (133) | 0 |
Reorganization items, net | 164 | 0 | 0 |
Change in fair value of Public Warrants | 627 | 0 | 0 |
Total expenses | 791 | (131) | 7 |
Income (loss) before income taxes | (791) | 131 | (7) |
Income tax (provision) benefit | 0 | 1 | 2 |
Equity in earnings (losses) of subsidiaries, net of tax | 1,157 | (1,846) | (53) |
Net income (loss) | 366 | (1,714) | (58) |
Net income (loss) available to Hertz Global common stockholders | (84) | (1,714) | (58) |
Hertz Global Holdings | Series A Preferred Stock | |||
Expenses: | |||
Series A Preferred Stock deemed dividends | $ (450) | $ 0 | $ 0 |
SCHEDULE I CONDENSED FINANCIA_5
SCHEDULE I CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Statements of Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Condensed Financial Statements, Captions [Line Items] | |||
Net income (loss) | $ 365 | $ (1,723) | $ (50) |
Total other comprehensive income (loss) | (2) | (23) | 3 |
Total comprehensive income (loss) | 363 | (1,746) | (47) |
Hertz Global Holdings | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net income (loss) | 366 | (1,714) | (58) |
Total other comprehensive income (loss) | (2) | (23) | 3 |
Total comprehensive income (loss) | $ 364 | $ (1,737) | $ (55) |
SCHEDULE I CONDENSED FINANCIA_6
SCHEDULE I CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Statements of Cash Flows) (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||||
Cash flows from financing activities: | ||||||||
Proceeds from Plan Sponsors | $ 2,781,000,000 | $ 0 | $ 0 | |||||
Proceeds from rights offerings, net | 1,639,000,000 | 0 | 748,000,000 | |||||
Proceeds from exercises of Public Warrants | 77,000,000 | 0 | 0 | |||||
Proceeds from the issuance of preferred stock, net | 1,433,000,000 | 0 | 0 | |||||
Distributions to common stockholders | (239,000,000) | 0 | 0 | |||||
Share repurchases | $ (408,000,000) | (654,000,000) | 0 | 0 | ||||
Repurchase of preferred stock | (1,883,000,000) | 0 | 0 | |||||
Payments for Nasdaq listing costs | (9,000,000) | 0 | 0 | |||||
Proceeds from issuance of common stock, net | 0 | 28,000,000 | 0 | |||||
Other | 0 | (2,000,000) | (3,000,000) | |||||
Net cash provided by (used in) financing activities | 2,845,000,000 | (5,372,000,000) | 1,474,000,000 | |||||
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period | 1,507,000,000 | 1,360,000,000 | [1] | 1,410,000,000 | [1] | |||
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period | 2,651,000,000 | [1] | 2,651,000,000 | [1] | 1,507,000,000 | 1,360,000,000 | [1] | |
Hertz Global Holdings | ||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||
Net cash provided by (used in) operating activities | 0 | (3,000,000) | (7,000,000) | |||||
Cash flows from financing activities: | ||||||||
Proceeds from loans with Hertz | 0 | 5,000,000 | 12,000,000 | |||||
Proceeds from Plan Sponsors | 2,781,000,000 | 0 | 0 | |||||
Proceeds from rights offerings, net | 1,639,000,000 | 0 | 748,000,000 | |||||
Contributions to Hertz | (5,642,000,000) | 0 | (750,000,000) | |||||
Proceeds from exercises of Public Warrants | 77,000,000 | 0 | 0 | |||||
Proceeds from the issuance of preferred stock, net | 1,433,000,000 | 0 | 0 | |||||
Distributions to common stockholders | (239,000,000) | 0 | 0 | |||||
Share repurchases | (654,000,000) | 0 | 0 | |||||
Repurchase of preferred stock | (1,883,000,000) | 0 | 0 | |||||
Payments for Nasdaq listing costs | (9,000,000) | 0 | 0 | |||||
Dividends from Hertz | 2,470,000,000 | 0 | 0 | |||||
Proceeds from issuance of common stock, net | 0 | 28,000,000 | 0 | |||||
Other | 0 | (2,000,000) | (3,000,000) | |||||
Net cash provided by (used in) financing activities | (27,000,000) | 31,000,000 | 7,000,000 | |||||
Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents during the period | (27,000,000) | 28,000,000 | 0 | |||||
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period | 28,000,000 | 0 | 0 | |||||
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period | $ 1,000,000 | $ 1,000,000 | $ 28,000,000 | $ 0 | ||||
[1] | Amounts include cash and cash equivalents and restricted cash and cash equivalents which were held for sale as of December 31, 2020, prior to the completion of the Donlen Sale in the first quarter of 2021, as described in Note 3 , " Divestitures." |
SCHEDULE I CONDENSED FINANCIA_7
SCHEDULE I CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Dividends) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Tax Related Liability | |||
Condensed Financial Statements, Captions [Line Items] | |||
Due from affiliates | $ 65,000,000 | $ 65,000,000 | |
Hertz Global Holdings | |||
Condensed Financial Statements, Captions [Line Items] | |||
Payments of dividends | $ 2,470,000,000 | $ 0 | $ 0 |
SCHEDULE I CONDENSED FINANCIA_8
SCHEDULE I CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Share Repurchase) (Details) - USD ($) $ in Millions | Nov. 09, 2021 | Dec. 31, 2021 | Feb. 17, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Condensed Financial Statements, Captions [Line Items] | ||||||
Treasury stock, shares | 27,450,854 | 27,450,854 | 2,028,932 | |||
Treasury stock value | $ 708 | $ 708 | $ 100 | |||
Shares repurchased (in shares) | 10,344,828 | 17,106,026 | ||||
Share repurchases | $ 408 | $ 654 | $ 0 | $ 0 | ||
Subsequent Event | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Shares repurchased (in shares) | 20,589,620 | |||||
Share repurchases | $ 431 | |||||
Hertz Global Holdings | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Treasury stock, shares | 27,450,854 | 27,450,854 | 2,028,932 | |||
Treasury stock value | $ 708 | $ 708 | $ 100 | |||
Share repurchases | $ 654 | $ 0 | $ 0 |
SCHEDULE I CONDENSED FINANCIA_9
SCHEDULE I CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Transactions with Affiliates and Investments in Subsidiaries) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Condensed Financial Statements, Captions [Line Items] | ||
Stockholder's deficit attributable to Hertz | $ 2,977 | $ 56 |
The Hertz Corporation | ||
Condensed Financial Statements, Captions [Line Items] | ||
Stockholder's deficit attributable to Hertz | $ 4,350 | $ (42) |
SCHEDULE II VALUATION AND QUA_2
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Receivables allowances: | |||
Valuation Allowance for Impairment of Recognized Servicing Assets [Roll Forward] | |||
Balance at Beginning of Period | $ 46 | $ 35 | $ 27 |
Additions, Charged to Expense | 125 | 94 | 53 |
Additions, Translation Adjustments | 0 | 0 | 0 |
Deductions | (121) | (83) | (45) |
Balance at End of Period | 50 | 46 | 35 |
Tax valuation allowances: | |||
Valuation Allowance for Impairment of Recognized Servicing Assets [Roll Forward] | |||
Balance at Beginning of Period | 651 | 396 | 318 |
Additions, Charged to Expense | 78 | 218 | 75 |
Additions, Translation Adjustments | (39) | 37 | 3 |
Deductions | 0 | 0 | 0 |
Balance at End of Period | $ 690 | $ 651 | $ 396 |