SCHEDULE I CONDENSED FINANCIAL INFORMATION OF REGISTRANT

12 Months Ended

Dec. 31, 2013

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Schedule I Condensed Financial Information of Registrant

SCHEDULE I

CONDENSED FINANCIAL INFORMATION OF REGISTRANT

THE HERTZ CORPORATION

PARENT COMPANY BALANCE SHEETS

(In Millions of Dollars except for share and per share data)

	December 31,
	2013			2012
ASSETS
Cash and cash equivalents	$	76.1		$	24.6
Restricted cash and cash equivalents	56.1			32.7
Receivables, less allowance for doubtful accounts	426.4			542.9
Due from Hertz affiliates	1,994.2			1,048.0
Inventories, at lower of cost or market	25.5			24.4
Prepaid expenses and other assets	3,109.0			2,576.8
Revenue earning equipment, net	243.4			103.6
Property and equipment, net	912.6			865.7
Investments in subsidiaries, net	6,975.0			6,937.4
Other intangible assets, net	62.5			74.6
Goodwill	103.9			106.2
Total assets	$	13,984.7		$	12,336.9
LIABILITIES AND STOCKHOLDERS' EQUITY
Due to Hertz affiliates	$	3,841.2		$	2,254.2
Accounts payable	151.0			237.1
Accrued liabilities	584.6			605.3
Accrued taxes	60.8			54.4
Debt	6,363.3			6,190.1
Public liability and property damage	99.4			99.3
Deferred taxes on income	—			—
Total Liabilities	11,100.3			9,440.4
Stockholder's equity:
Common Stock, $0.01 par value, 3,000 shares authorized, 100 shares issued and outstanding	—			—
Additional paid-in capital	3,551.7			3,510.0
Accumulated deficit	(674.4		)	(586.6		)
Accumulated other comprehensive loss	7.1			(26.9		)
Total stockholder's equity	2,884.4			2,896.5
Total liabilities and stockholder's equity	$	13,984.7		$	12,336.9

The accompanying notes are an integral part of these financial statements.

SCHEDULE I (Continued)

THE HERTZ CORPORATION

PARENT COMPANY STATEMENTS OF OPERATIONS

(In Millions of Dollars)

	Years ended December 31,
	2013			2012			2011
Revenues	$	4,544.9		$	4,259.1		$	4,068.3
Expenses:
Direct operating	2,555.2			2,385.7			2,262.7
Depreciation of revenue earning equipment and lease charges	2,713.6			2,378.5			1,986.2
Selling, general and administrative	482.3			474.1			349.2
Interest expense, net of interest income	336.6			253.5			299.2
Other (income) expense, net	54.1			(10.7		)	62.4
Total expenses	6,141.8			5,481.1			4,959.7
Loss before income taxes	(1,596.9		)	(1,222.0		)	(891.4		)
Benefit for taxes on income	597.1			477.7			347.3
Equity in earnings of subsidiaries, net of tax	1,393.8			1,015.5			742.5
Net income (loss)	$	394.0		$	271.2		$	198.4

The accompanying notes are an integral part of these financial statements.

SCHEDULE I (Continued)

THE HERTZ CORPORATION

PARENT COMPANY STATEMENTS OF COMPREHENSIVE INCOME

(In Millions of Dollars)

	Years Ended December 31,
	2013		2012		2011
Net income	$	394.0	$	271.2	$	198.4
Other comprehensive income (loss)	34.0		1.6		(66.3		)
Comprehensive income	$	428.0	$	272.8	$	132.1

The accompanying notes are an integral part of these financial statements.

SCHEDULE I (Continued)

THE HERTZ CORPORATION

PARENT COMPANY STATEMENTS OF STOCKHOLDER'S EQUITY

(In Millions of Dollars, except share data)

	Common Stock			Additional Paid-In Capital			Accumulated Deficit			Accumulated Other Comprehensive Income (Loss)			Total Equity
Balance at:	Shares	Amount
December 31, 2010	100	$	—	$	3,452.0		$	(1,003.8	)	$	37.8		$	2,486.0
Cumulative effect of accounting corrections							(4.5		)				(4.5		)
December 31, 2010 (as revised)	100	—		3,452.0			(1,008.3		)	37.8			2,481.5
Net loss attributable to The Hertz Corporation and Subsidiaries' common stockholder							198.4						198.4
Dividends paid to Hertz Global Holdings, Inc.							(22.9		)				(22.9		)
Other comprehensive income										(66.3		)	(66.3		)
Dividend payment to noncontrolling interest													—
Net income relating to noncontrolling interest													—
Acquisition of remaining portion of non-controlling interest, net of tax of $9.8				(15.3		)							(15.3		)
Stock-based employee compensation charges, net of tax of $0				31.1									31.1
Proceeds from employee stock purchase plan, net of tax of $0				4.2									4.2
Hertz Holdings common and phantom shares issued to Directors				1.6									1.6
December 31, 2011	100	—		3,473.6			(832.8		)	(28.5		)	2,612.3
Net income attributable to The Hertz Corporation and Subsidiaries' common stockholder							271.2						271.2
Dividends paid to Hertz Global Holdings, Inc.							(25.0		)				(25.0		)
Other comprehensive loss										1.6			1.6
Stock-based employee compensation charges, net of tax of $0.4				29.9									29.9
Proceeds from employee stock purchase plan, net of tax of $0				5.0									5.0
Hertz Holdings common shares issued to Directors				1.5									1.5
December 31, 2012	100	—		3,510.0			(586.6		)	(26.9		)	2,896.5
Net income attributable to The Hertz Corporation and Subsidiaries' common stockholder							394.0						394.0
Dividends paid to Hertz Global Holdings, Inc.							(481.8		)				(481.8		)
Other comprehensive loss										34.0			34.0
Stock-based employee compensation charges, net of tax of $0				35.1									35.1
Proceeds from employee stock purchase plan, net of tax $0				6.0									6.0
Hertz Holdings common and phantom shares issued to Directors				0.6									0.6
December 31, 2013	100	$	—	$	3,551.7		$	(674.4	)	$	7.1		$	2,884.4

The accompanying notes are an integral part of these financial statements.

SCHEDULE I (Continued)

THE HERTZ CORPORATION

PARENT COMPANY STATEMENTS OF CASH FLOWS

(In Millions of Dollars)

	Years ended December 31,
	2013			2012			2011
Cash flows from operating activities:
Net income	$	394.0		$	271.2		$	198.4
Adjustments to reconcile net income to net cash provided by operating activities	(212.8		)	(1,149.0		)	801.5
Net cash provided by (used in) operating activities	181.2			(877.8		)	999.9
Cash flows from investing activities:
Net change in restricted cash and cash equivalents	(23.4		)	12.0			(28.6		)
Revenue earning equipment expenditures	(149.5		)	(87.7		)	(141.4		)
Proceeds from disposal of revenue earning equipment	136.4			79.4			163.3
Property and equipment expenditures	(192.4		)	(173.1		)	(189.5		)
Proceeds from disposal of property and equipment	42.4			67.4			24.0
Capital contributions to subsidiaries	(937.9		)	(2,989.7		)	(3,549.1		)
Return of capital from subsidiaries	1,133.9			3,106.7			2,590.0
Acquisitions, net of cash acquired	—			(1,708.5		)	(214.4		)
Purchase of short-term investments, net	—			—			(32.9		)
Net cash provided by (used in) investing activities	9.5			(1,693.5		)	(1,378.6		)
Cash flows from financing activities:
Proceeds from issuance of long-term debt	250.0			2,210.0			2,455.3
Payment of long-term debt	(33.8		)	(650.4		)	(3,596.3		)
Short-term borrowings:
Payments	—			(26.8		)	(29.2		)
Proceeds under the revolving lines of credit	2,280.0			2,820.0			1,102.7
Payments under the revolving lines of credit	(2,323.0		)	(2,600.0		)	(1,131.9		)
Payment of dividends and return of capital	(481.8		)	(25.0		)	(22.9		)
Proceeds from employee stock purchase plan	5.1			4.3			3.6
Loan to parent from Non-Guarantor	253.1			385.1			490.3
Loan with Hertz affiliate	(79.8		)	(13.2		)	(1.0		)
Purchase of noncontrolling interest	—			(38.0		)	—
Payment of financing costs	(9.0		)	(35.2		)	(81.2		)
Net cash provided by (used in) financing activities	(139.2		)	2,030.8			(810.6		)
Net change in cash and cash equivalents during the period	51.5			(540.5		)	(1,189.3		)
Cash and cash equivalents at beginning of period	24.6			565.1			1,754.4
Cash and cash equivalents at end of period	$	76.1		$	24.6		$	565.1

The accompanying notes are an integral part of these financial statements.

Background and Basis of Presentation

The accompanying condensed financial statements include only the accounts of The Hertz Corporation, or the “Company.” Investments in the Company's subsidiaries are accounted for under the equity method. These parent company financial statements have been prepared in accordance with Rule 12-04 of Regulation S-X, as restricted net assets of the Company's subsidiaries exceed 25% of the Company's consolidated net assets as of December 31, 2013.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted since this information is included in the Company's annual consolidated financial statements included in this Annual Report under the caption “Item 8—Financial Statements and Supplementary Data.”

During the fourth quarter of 2013, we revised our previously issued consolidated financial statements as more fully described in Note 2—Summary of Significant Accounting Policies and Note 18—Guarantor and Non-Guarantor Condensed Consolidating Financial Statements included in this Annual Report under the caption “Item 8—Financial Statements and Supplementary Data.” Management has concluded that the impact on the Parent Company financial statements as a result of the revision is not material.

Commitments and Contingencies

The following table details the contractual cash obligations of the Company for debt, related interest payable and tax liability for uncertain tax positions and related interest as of December 31, 2013 (in millions of dollars):

	Total		2014		2015		2016		2017		2018		Thereafter
Debt	$	6,360.0	$	349.4	$	21.3	$	21.3	$	21.3	$	2,969.3	$	2,977.4
Interest	1,970.8		341.1		337.9		342.7		363.3		261.2		324.6
Uncertain tax positions liability and interest	1.2		1.2		—		—		—		—		—
Total	$	8,332.0	$	691.7	$	359.2	$	364.0	$	384.6	$	3,230.5	$	3,302.0

The following table details the contractual cash obligations of the Company for operating leases and purchase obligations as of December 31, 2013 (in millions of dollars):

	Total		Less than 1 Year		1-3 Years		3-5 Years		More than 5 Years
Operating leases and concession agreements	$	1,603.0	$	309.1	$	428.1	$	270.8	$	595.0
Purchase obligations	3,840.5		3,795.3		43.5		1.7		—
Total	$	5,443.5	$	4,104.4	$	471.6	$	272.5	$	595.0

Distribution of Equity

The following table details distributions of equity received by the Company from its subsidiaries during 2013, 2012 and 2011 (in millions of dollars):

	2013		2012		2011
Distribution of Equity	$	2,233.4	$	3,981.6	$	3,143.4