Guarantor and Non-Guarantor Condensed Consolidating Financial Statements (Tables)

6 Months Ended

Jun. 30, 2013

Guarantor and Non-Guarantor Condensed Consolidating Financial Statements Disclosure

Schedule of condensed consolidating balance sheets

CONDENSED CONSOLIDATING BALANCE SHEET

June 30, 2013

(In Millions of Dollars)

	Parent (The Hertz Corporation)		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations			The Hertz Corporation & Subsidiaries
ASSETS
Cash and cash equivalents	$	87.5	$	24.5	$	371.0	$	—		$	483.0
Restricted cash and cash equivalents	33.7		17.0		342.5		—			393.2
Receivables, less allowance for doubtful accounts	500.8		482.1		719.3		(46.2		)	1,656.0
Due from Hertz affiliate	1,042.7		1,842.7		3,691.7		(6,576.3		)	0.8
Inventories, at lower cost or market	30.8		39.8		57.7		—			128.3
Prepaid expenses and other assets	2,894.7		244.3		407.2		(2,783.0		)	763.2
Revenue earning equipment, net	175.3		1,893.0		13,637.7		—			15,706.0
Property and equipment, net	897.6		315.1		252.9		—			1,465.6
Investment in subsidiaries, net	6,833.1		1,367.9		—		(8,201.0		)	—
Other intangible assets, net	70.2		3,848.1		50.2		—			3,968.5
Goodwill	106.2		1,035.6		224.5		—			1,366.3
Total assets	$	12,672.6	$	11,110.1	$	19,754.7	$	(17,606.5	)	$	25,930.9
LIABILITIES AND EQUITY
Due to Hertz affiliate	$	2,097.1	$	2,498.8	$	1,980.4	$	(6,576.3	)	$	—
Accounts payable	165.2		267.9		1,051.4		—			1,484.5
Accrued liabilities	642.7		242.2		343.6		(46.2		)	1,182.3
Accrued taxes	60.3		33.9		1,335.0		(1,245.6		)	183.6
Debt	7,042.3		68.5		10,283.4		—			17,394.2
Public liability and property damage	93.0		58.5		176.0		—			327.5
Deferred taxes on income	—		2,232.7		2,091.5		(1,537.4		)	2,786.8
Total liabilities	10,100.6		5,402.5		17,261.3		(9,405.5		)	23,358.9
Equity:
The Hertz Corporation and Subsidiaries stockholder's equity	2,572.0		5,707.6		2,493.4		(8,201.0		)	2,572.0
Noncontrolling interest	—		—		—		—			—
Total equity	2,572.0		5,707.6		2,493.4		(8,201.0		)	2,572.0
Total liabilities and equity	$	12,672.6	$	11,110.1	$	19,754.7	$	(17,606.5	)	$	25,930.9

CONDENSED CONSOLIDATING BALANCE SHEET

December 31, 2012

(In Millions of Dollars)

	Parent (The Hertz Corporation)		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations			The Hertz Corporation & Subsidiaries
ASSETS
Cash and cash equivalents	$	24.6	$	6.5	$	502.1	$	—		$	533.2
Restricted cash and cash equivalents	32.7		17.1		521.8		—			571.6
Receivables, less allowance for doubtful accounts	544.5		444.0		924.7		(26.6		)	1,886.6
Due from Hertz affiliate	1,048.0		2,023.5		3,491.7		(6,550.4		)	12.8
Inventories, at lower cost or market	24.4		41.2		40.1		—			105.7
Prepaid expenses and other assets	2,570.5		277.8		173.3		(2,560.1		)	461.5
Revenue earning equipment, net	104.2		1,678.5		11,125.6		—			12,908.3
Property and equipment, net	865.7		321.9		248.8		—			1,436.4
Investment in subsidiaries, net	6,964.9		1,260.9		—		(8,225.8		)	—
Other intangible assets, net	74.6		3,893.3		64.2		—			4,032.1
Goodwill	106.2		1,018.9		216.8		—			1,341.9
Total assets	$	12,360.3	$	10,983.6	$	17,309.1	$	(17,362.9	)	$	23,290.1
LIABILITIES AND EQUITY
Due to Hertz affiliate	$	2,254.2	$	2,421.6	$	1,874.6	$	(6,550.4	)	$	—
Accounts payable	239.2		193.9		566.0		—			999.1
Accrued liabilities	605.7		45.0		554.3		(26.6		)	1,178.4
Accrued taxes	54.4		29.1		1,049.3		(965.5		)	167.3
Debt	6,190.0		67.7		8,756.8		—			15,014.5
Public liability and property damage	99.3		52.8		180.1		—			332.2
Deferred taxes on income	—		2,205.6		2,070.1		(1,594.6		)	2,681.1
Total liabilities	9,442.8		5,015.7		15,051.2		(9,137.1		)	20,372.6
Equity:
The Hertz Corporation and Subsidiaries stockholder's equity	2,917.5		5,967.9		2,257.9		(8,225.8		)	2,917.5
Noncontrolling interest	—		—		—		—			—
Total equity	2,917.5		5,967.9		2,257.9		(8,225.8		)	2,917.5
Total liabilities and equity	$	12,360.3	$	10,983.6	$	17,309.1	$	(17,362.9	)	$	23,290.1

Schedule of condensed consolidating statement of operations

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

For the Three Months Ended June 30, 2013

(In Millions of Dollars)

	Parent (The Hertz Corporation)			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			The Hertz Corporation & Subsidiaries
Total revenues	$	1,147.0		$	662.8		$	1,617.5		$	(712.7	)	$	2,714.6
Expenses:
Direct operating	618.8			357.1			430.3			(0.3		)	1,405.9
Depreciation of revenue earning equipment and lease charges	608.0			168.9			576.4			(712.2		)	641.1
Selling, general and administrative	122.3			64.7			88.0			(0.2		)	274.8
Interest expense	88.0			8.5			73.7			—			170.2
Interest income	—			(1.6		)	(0.4		)	—			(2.0		)
Other (income) expense, net	14.5			(2.2		)	(13.4		)	—			(1.1		)
Total expenses	1,451.6			595.4			1,154.6			(712.7		)	2,488.9
Income (loss) before income taxes and equity in earnings (losses) of subsidiaries	(304.6		)	67.4			462.9			—			225.7
(Provision) benefit for taxes on income	109.3			(25.2		)	(179.9		)	—			(95.8		)
Equity in earnings (losses) of subsidiaries (net of tax)	325.2			56.8			—			(382.0		)	—
Net income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder	$	129.9		$	99.0		$	283.0		$	(382.0	)	$	129.9

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

For the Six Months Ended June 30, 2013

(In Millions of Dollars)

	Parent (The Hertz Corporation)			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			The Hertz Corporation & Subsidiaries
Total revenues	$	2,201.6		$	1,284.9		$	3,120.6		$	(1,455.9	)	$	5,151.2
Expenses:
Direct operating	1,231.7			710.0			815.9			(0.5		)	2,757.1
Depreciation of revenue earning equipment and lease charges	1,269.4			321.3			1,092.6			(1,455.2		)	1,228.1
Selling, general and administrative	229.5			124.4			172.6			(0.2		)	526.3
Interest expense	169.1			18.8			145.6			—			333.5
Interest income	—			(3.1		)	(0.7		)	—			(3.8		)
Other (income) expense, net	14.3			(2.2		)	(13.8		)	—			(1.7		)
Total expenses	2,914.0			1,169.2			2,212.2			(1,455.9		)	4,839.5
Income (loss) before income taxes and equity in earnings (losses) of subsidiaries	(712.4		)	115.7			908.4			—			311.7
(Provision) benefit for taxes on income	257.5			(43.1		)	(369.7		)	—			(155.3		)
Equity in earnings (losses) of subsidiaries (net of tax)	611.3			111.6			—			(722.9		)	—
Net income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder	$	156.4		$	184.2		$	538.7		$	(722.9	)	$	156.4

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

For the Three Months Ended June 30, 2012

(In Millions of Dollars)

	Parent (The Hertz Corporation)			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			The Hertz Corporation & Subsidiaries
Total revenues	$	1,074.9		$	233.1		$	1,493.1		$	(576.0	)	$	2,225.1
Expenses:
Direct operating	609.4			141.1			438.4			—			1,188.9
Depreciation of revenue earning equipment and lease charges	560.6			48.0			487.2			(576.0		)	519.8
Selling, general and administrative	94.4			31.4			80.8			—			206.6
Interest expense	56.0			9.1			74.2			—			139.3
Interest income	—			(0.2		)	(0.3		)	—			(0.5		)
Other (income) expense, net	—			—			(0.6		)	—			(0.6		)
Total expenses	1,320.4			229.4			1,079.7			(576.0		)	2,053.5
Income (loss) before income taxes noncontrolling interest and equity in earnings (losses) of subsidiaries	(245.5		)	3.7			413.4			—			171.6
(Provision) benefit for taxes on income	90.7			(1.3		)	(160.1		)	—			(70.7		)
Equity in earnings (losses) of subsidiaries (net of tax)	255.7			(33.8		)	—			(221.9		)	—
Net income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder	$	100.9		$	(31.4	)	$	253.3		$	(221.9	)	$	100.9

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

For the Six Months Ended June 30, 2012

(In Millions of Dollars)

	Parent (The Hertz Corporation)			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			The Hertz Corporation & Subsidiaries
Total revenues	$	2,042.9		$	442.9		$	2,834.3		$	(1,134.0	)	$	4,186.1
Expenses:
Direct operating	1,181.2			274.4			847.5			—			2,303.1
Depreciation of revenue earning equipment and lease charges	1,099.3			92.4			977.2			(1,134.0		)	1,034.9
Selling, general and administrative	198.6			56.9			158.8			—			414.3
Interest expense	119.6			19.0			150.2			—			288.8
Interest income	(0.1		)	(0.4		)	(1.1		)	—			(1.6		)
Other (income) expense, net	—			—			(1.0		)	—			(1.0		)
Total expenses	2,598.6			442.3			2,131.6			(1,134.0		)	4,038.5
Income (loss) before income taxes noncontrolling interest and equity in earnings (losses) of subsidiaries	(555.7		)	0.6			702.7			—			147.6
(Provision) benefit for taxes on income	201.9			(0.6		)	(296.2		)	—			(94.9		)
Equity in earnings (losses) of subsidiaries (net of tax)	406.5			(22.6		)	—			(383.9		)	—
Net income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder	$	52.7		$	(22.6	)	$	406.5		$	(383.9	)	$	52.7

Schedule of condensed consolidating comprehensive income (loss)

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS)

For the Three Months Ended June 30, 2013

(In Millions of Dollars)

	Parent (The Hertz Corporation)			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			The Hertz Corporation & Subsidiaries
Net income (loss)	$	129.9		$	99.0		$	283.0		$	(382.0	)	$	129.9
Other comprehensive income (loss), net of tax	(22.2		)	(3.2		)	(24.4		)	27.6			(22.2		)
Comprehensive income (loss)	$	107.7		$	95.8		$	258.6		$	(354.4	)	$	107.7

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS)

For the Six Months Ended June 30, 2013

(In Millions of Dollars)

	Parent (The Hertz Corporation)			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			The Hertz Corporation & Subsidiaries
Net income (loss)	$	156.4		$	184.2		$	538.7		$	(722.9	)	$	156.4
Other comprehensive income, net of tax	(46.5		)	(0.4		)	(51.3		)	51.8			(46.4		)
Comprehensive income (loss)	109.9			183.8			487.4			(671.1		)	110.0

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS)

For the Three Months Ended June 30, 2012

(In Millions of Dollars)

	Parent (The Hertz Corporation)			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			The Hertz Corporation & Subsidiaries
Net income (loss)	$	100.9		$	(31.4	)	$	253.3		$	(221.9	)	$	100.9
Other comprehensive income, net of tax	(42.0		)	—			(45.6		)	45.6			(42.0		)
Comprehensive income (loss)	58.9			(31.4		)	207.7			(176.3		)	58.9

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS)

For the Six Months Ended June 30, 2012

(In Millions of Dollars)

	Parent (The Hertz Corporation)			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			The Hertz Corporation & Subsidiaries
Net income (loss)	$	52.7		$	(22.6	)	$	406.5		$	(383.9	)	$	52.7
Other comprehensive income, net of tax	(9.6		)	—			(16.4		)	16.4			(9.6		)
Comprehensive income (loss)	43.1			(22.6		)	390.1			(367.5		)	43.1

Schedule of condensed consolidating statement of cash flows

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the Six Months Ended June 30, 2013

(In Millions of Dollars)

	Parent (The Hertz Corporation)			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			The Hertz Corporation & Subsidiaries
Net cash provided by (used in) operating activities	$	(365.7	)	$	425.1		$	1,811.9		$	(405.3	)	$	1,466.0
Cash flows from investing activities:
Net change in restricted cash and cash equivalents	(1.0		)	0.2			176.2			—			175.4
Revenue earning equipment expenditures	(87.9		)	(347.7		)	(6,389.9		)	—			(6,825.5		)
Proceeds from disposal of revenue earning equipment	47.7			16.9			3,678.2			—			3,742.8
Property and equipment expenditures	(99.1		)	(18.0		)	(51.0		)	—			(168.1		)
Proceeds from disposal of property and equipment	24.6			5.5			12.4			—			42.5
Capital contributions to subsidiaries	(485.7		)	—			—			485.7			—
Return of capital from subsidiaries	651.0			—			—			(651.0		)	—
Loan to Parent/Guarantor from Non-Guarantor	—			—			57.0			(57.0		)	—
Acquisitions, net of cash acquired	—			(2.8		)	(226.4		)	—			(229.2		)
Proceeds from disposal of business	—			—			—			—			—
Other investing activities	—			—			(2.0		)	—			(2.0		)
Net cash provided by (used in) investing activities	49.6			(345.9		)	(2,745.5		)	(222.3		)	(3,264.1		)
Cash flows from financing activities:
Proceeds from issuance of long-term debt	250.0			—			954.4			—			1,204.4
Payment of long-term debt	(22.8		)	—			(297.9		)	—			(320.7		)
Short-term borrowings:
Proceeds	—			—			332.0			—			332.0
Payments	—			—			(435.9		)	—			(435.9		)
Proceeds under the revolving lines of credit	1,360.0			1.6			2,318.5			—			3,680.1
Payments under the revolving lines of credit	(735.0		)	(5.0		)	(1,477.9		)	—			(2,217.9		)
Capital contributions received from parent	—			—			485.7			(485.7		)	—
Loan to Parent/Guarantor from Non-Guarantor	—			(57.0		)	—			57.0			—
Payment of dividends and return of capital	—			—			(1,056.3		)	1,056.3			—
Dividends paid to Parent	(479.7		)	—			—			—			(479.7		)
Proceeds from employee stock purchase plan	2.4			—			—			—			2.4
Loan with Hertz Global Holdings, Inc.	12.0			—			—			—			12.0
Payment of financing costs	(7.9		)	(0.8		)	(11.9		)	—			(20.6		)
Net cash provided by (used in) financing activities	379.0			(61.2		)	810.7			627.6			1,756.1
Effect of foreign exchange rate changes on cash and cash equivalents	—			—			(8.2		)	—			(8.2		)
Net change in cash and cash equivalents during the period	62.9			18.0			(131.1		)	—			(50.2		)
Cash and cash equivalents at beginning of period	24.6			6.5			502.1			—			533.2
Cash and cash equivalents at end of period	$	87.5		$	24.5		$	371.0		$	—		$	483.0

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the Six Months Ended June 30, 2012

(In Millions of Dollars)

	Parent (The Hertz Corporation)			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			The Hertz Corporation & Subsidiaries
Net cash provided by (used in) operating activities	$	(219.0	)	$	334.2		$	1,409.3		$	(341.5	)	$	1,183.0
Cash flows from investing activities:
Net change in restricted cash and cash equivalents	12.6			18.2			99.3			—			130.1
Revenue earning equipment expenditures	(73.8		)	(334.1		)	(5,303.1		)	—			(5,711.0		)
Proceeds from disposal of revenue earning equipment	54.4			162.6			3,391.3			—			3,608.3
Property and equipment expenditures	(80.2		)	(24.2		)	(32.8		)	—			(137.2		)
Proceeds from disposal of property and equipment	44.3			4.2			7.9			—			56.4
Capital contributions to subsidiaries	(2,215.9		)	—			—			2,215.9			—
Return of capital from subsidiaries	2,220.6			—			—			(2,220.6		)	—
Acquisitions, net of cash acquired	—			(161.8		)	—			—			(161.8		)
Loan to Parent from Non-Guarantor	—			—			(18.3		)	18.3			—
Other investing activities	—			—			(0.6		)	—			(0.6		)
Net cash provided by (used in) investing activities	(38.0		)	(335.1		)	(1,856.3		)	13.6			(2,215.8		)
Cash flows from financing activities:
Proceeds from issuance of long-term debt	260.0			—			10.5			—			270.5
Payment of long-term debt	(637.3		)	—			(5.8		)	—			(643.1		)
Short-term borrowings:
Proceeds	—			—			246.7			—			246.7
Payments	(26.8		)	—			(629.4		)	—			(656.2		)
Proceeds under the revolving lines of credit	1,360.0			1.9			2,173.6			—			3,535.5
Payments under the revolving lines of credit	(950.0		)	(2.9		)	(1,038.8		)	—			(1,991.7		)
Purchase of noncontrolling interest	(38.0		)	—			—			—			(38.0		)
Capital contributions received from parent	—			—			2,215.9			(2,215.9		)	—
Payment of dividends and return of capital	(12.5		)	—			(2,562.1		)	2,562.1			(12.5		)
Repayment of Loan to Parent from Non-Guarantor	18.3			—			—			(18.3		)	—
Proceeds from employee stock purchase plan	2.0			—			—			—			2.0
Loan from Hertz Global Holdings, Inc.	(13.9		)	—			—			—			(13.9		)
Payment of financing costs	(4.2		)	(1.5		)	(1.2		)	—			(6.9		)
Net cash provided by (used in) financing activities	(42.4		)	(2.5		)	409.4			327.9			692.4
Effect of foreign exchange rate changes on cash and cash equivalents	—			—			(4.8		)	—			(4.8		)
Net decrease in cash and cash equivalents during the period	(299.4		)	(3.4		)	(42.4		)	—			(345.2		)
Cash and cash equivalents at beginning of period	565.0			7.4			358.8			—			931.2
Cash and cash equivalents at end of period	$	265.6		$	4.0		$	316.4		$	—		$	586.0