Quarterly Financial Information (Unaudited)

As further described in Note 2 - "Restatement," in lieu of filing quarterly reports on Form 10-Q for 2014, quarterly financial data for 2014 and 2013 (as restated) is included in this Annual Report in the tables that follow. Amounts are computed independently each quarter, therefore, the sum of the quarterly amounts may not equal the total amount for the respective year due to rounding.



QUARTERLY CONSOLIDATED BALANCE SHEETS
(In millions, except par value and share data)
	March 31, 2014			June 30, 2014			September 30, 2014
ASSETS
Cash and cash equivalents	$	498		$	540		$	629
Restricted cash and cash equivalents	453			717			748
Receivables, net of allowance of $69, $70 and $66, respectively	1,344			1,511			1,702
Due from Hertz Global Holdings, Inc.	114			95			96
Inventories, net	94			103			94
Prepaid expenses and other assets	818			772			786
Revenue earning equipment, at cost:
Cars	14,995			16,553			15,809
Less accumulated depreciation - cars	(2,931		)	(3,244		)	(3,491		)
Other equipment	3,585			3,695			3,707
Less accumulated depreciation - other equipment	(1,144		)	(1,175		)	(1,173		)
Revenue earning equipment, net	14,505			15,829			14,852
Property and equipment:
Land, buildings and leasehold improvements	1,282			1,319			1,325
Service equipment and other	1,051			1,066			1,067
Less accumulated depreciation	(1,051		)	(1,108		)	(1,128		)
Property and equipment, net	1,282			1,277			1,264
Other intangible assets, net	4,100			4,067			4,049
Goodwill	1,353			1,353			1,349
Total assets	$	24,562		$	26,264		$	25,569
LIABILITIES AND EQUITY
Accounts payable	$	1,307		$	1,705		$	1,078
Accrued liabilities	1,166			1,078			1,156
Accrued taxes, net	160			155			191
Debt	16,042			17,310			16,986
Public liability and property damage	366			378			385
Deferred taxes on income, net	2,917			2,941			2,963
Total liabilities	21,958			23,567			22,759
Commitments and contingencies	—			—			—
Equity:
The Hertz Corporation and Subsidiaries stockholder's equity
Common Stock, $0.01 par value, 3,000 shares authorized, 100 shares issued and outstanding	—			—			—
Additional paid-in capital	3,562			3,570			3,570
Accumulated deficit	(945		)	(872		)	(722		)
Accumulated other comprehensive loss	(13		)	(1		)	(38		)
Total equity	2,604			2,697			2,810
Total liabilities and equity	$	24,562		$	26,264		$	25,569



QUARTERLY CONSOLIDATED BALANCE SHEETS
(In millions, except par value and share data)
	(As Restated)



	March 31, 2013 (1)			June 30, 2013 (2)			September 30, 2013 (3)
ASSETS
Cash and cash equivalents	$	650		$	467		$	505
Restricted cash and cash equivalents	415			390			522
Receivables, net of allowance of $58, $56 and $67, respectively	1,448			1,545			1,597
Due from Hertz Global Holdings, Inc.	13			1			11
Inventories, net	107			127			104
Prepaid expenses and other assets	543			755			666
Revenue earning equipment:
Cars	13,632			15,418			15,177
Less accumulated depreciation - cars	(1,958		)	(2,125		)	(2,396		)
Other equipment	3,336			3,452			3,514
Less accumulated depreciation - other equipment	(1,060		)	(1,062		)	(1,102		)
Revenue earning equipment, net	13,950			15,683			15,193
Property and equipment:
Land, buildings and leasehold improvements	1,224			1,241			1,284
Service equipment and other	1,033			1,041			950
Less accumulated depreciation	(991		)	(1,021		)	(958		)
Property and equipment, net	1,266			1,261			1,276
Other intangible assets, net	4,161			4,136			4,126
Goodwill	1,346			1,363			1,363
Total assets	$	23,899		$	25,728		$	25,363
LIABILITIES AND EQUITY
Accounts payable	$	1,337		$	1,520		$	981
Accrued liabilities	1,260			1,242			1,356
Accrued taxes, net	146			138			182
Debt	15,876			17,394			17,055
Public liability and property damage	322			328			347
Deferred taxes on income, net	2,687			2,739			2,812
Total liabilities	21,628			23,361			22,733
Commitments and contingencies
Equity:
The Hertz Corporation and Subsidiaries stockholder's equity
Common Stock, $0.01 par value, 3,000 shares authorized, 100 shares issued and outstanding	—			—			—
Additional paid-in capital	3,520			3,533			3,548
Accumulated deficit	(1,199		)	(1,091		)	(861		)
Accumulated other comprehensive loss	(50		)	(75		)	(57		)
Total equity	2,271			2,367			2,630
Total liabilities and equity	$	23,899		$	25,728		$	25,363



QUARTERLY CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions)

	First Quarter			Second Quarter			Year to Date Second Quarter			Third Quarter			Year to Date Third Quarter			Fourth Quarter
	2014			2014			2014			2014			2014			2014
Revenues:
Worldwide car rental	$	2,039		$	2,304		$	4,343		$	2,563		$	6,907		$	2,000
Worldwide equipment rental	358			384			743			413			1,155			416
All other operations	139			142			280			145			425			143
Total revenues	2,536			2,830			5,366			3,121			8,487			2,559
Expenses:
Direct operating	1,443			1,594			3,037			1,702			4,738			1,575
Depreciation of revenue earning equipment and lease charges, net	726			708			1,434			746			2,180			853
Selling, general and administrative	276			265			541			303			844			246
Interest expense, net	153			162			315			163			479			163
Other (income) expense, net	(3		)	(22		)	(25		)	3			(22		)	6
Total expenses	2,595			2,707			5,302			2,917			8,219			2,843
Income (loss) before income taxes	(59		)	123			64			204			268			(284		)
(Provision) benefit for taxes on income (loss)	(8		)	(50		)	(58		)	(54		)	(112		)	50
Net income (loss)	$	(67	)	$	73		$	6		$	150		$	156		$	(234	)



QUARTERLY CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions)
	(As Restated)
	First Quarter			Second Quarter			Year to Date Second Quarter			Third Quarter			Year to Date Third Quarter			Fourth Quarter
	2013 (4)			2013 (5)			2013 (6)			2013 (7)			2013 (8)			2013 (9)
Revenues:
Worldwide car rental	$	1,955		$	2,197		$	4,153		$	2,538		$	6,690		$	2,019
Worldwide equipment rental	353			381			734			403			1,138			401
All other operations	129			130			258			134			392			135
Total revenues	2,437			2,708			5,145			3,075			8,220			2,555
Expenses:
Direct operating	1,364			1,417			2,781			1,547			4,328			1,449
Depreciation of revenue earning equipment and lease charges, net	589			632			1,220			672			1,893			641
Selling, general and administrative	250			287			538			282			819			234
Interest expense, net	161			168			329			173			502			168
Other (income) expense, net	—			(2		)	(2		)	44			42			21
Total expenses	2,364			2,502			4,866			2,718			7,584			2,513
Income (loss) before income taxes	73			206			279			357			636			42
(Provision) benefit for taxes on income (loss)	(59		)	(86		)	(145		)	(128		)	(272		)	(56		)
Net income (loss)	$	14		$	120		$	134		$	229		$	364		$	(14	)



QUARTERLY CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
	Three Months Ended March 31, 2014			Six Months Ended June 30, 2014			Nine Months Ended September 30, 2014
Cash flows from operating activities:
Net income (loss)	$	(67	)	$	6		$	156
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation of revenue earning equipment, net	707			1,393			2,119
Depreciation and amortization, non-fleet assets	90			180			272
Amortization and write-off of deferred financing costs	12			27			41
Amortization and write-off of debt discount	(2		)	(4		)	(8		)
Stock-based compensation charges	8			13			14
Provision for receivables allowance	16			32			47
Deferred taxes on income	(5		)	23			33
Impairment charges and asset write-downs	—			10			10
Other	2			(4		)	3
Changes in assets and liabilities, net of effects of acquisition:
Receivables	(85		)	(284		)	(187		)
Inventories, prepaid expenses and other assets	(25		)	(51		)	(58		)
Accounts payable	2			32			34
Accrued liabilities	75			(2		)	153
Accrued taxes	16			7			57
Public liability and property damage	16			28			47
Net cash provided by (used in) operating activities	760			1,406			2,733
Cash flows from investing activities:
Net change in restricted cash and cash equivalents	407			143			107
Revenue earning equipment expenditures	(2,582		)	(5,996		)	(8,442		)
Proceeds from disposal of revenue earning equipment	1,859			3,717			5,316
Capital asset expenditures, non-fleet	(75		)	(151		)	(232		)
Proceeds from disposal of property and equipment	25			45			67
Acquisitions, net of cash acquired	(6		)	(6		)	(69		)
Equity method investment	—			—			(30		)
Repayments of loans with Hertz Global Holdings, Inc.	(14		)	(27		)	(28		)
Proceeds from loans with Hertz Global Holdings, Inc.	—			25			25
Other investing activities	—			—			—
Net cash provided by (used in) investing activities	(386		)	(2,250		)	(3,286		)



QUARTERLY CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)
(In millions)

	Three Months Ended March 31, 2014			Six Months Ended June 30, 2014			Nine Months Ended September 30, 2014
Cash flows from financing activities:
Proceeds from issuance of long-term debt	400			414			400
Repayments of long-term debt	(92		)	(97		)	(207		)
Short-term borrowings:
Proceeds	169			269			528
Payments	(259		)	(369		)	(537		)
Proceeds under the revolving lines of credit	1,081			2,779			4,018
Payments under the revolving lines of credit	(1,582		)	(2,017		)	(3,405		)
Payment of financing costs	(7		)	(6		)	(12		)
Other	3			2			4
Net cash provided by financing activities	(287		)	975			789
Effect of foreign exchange rate changes on cash and cash equivalents	—			(2		)	(18		)
Net change in cash and cash equivalents during the period	87			129			218
Cash and cash equivalents at beginning of period	411			411			411
Cash and cash equivalents at end of period	$	498		$	540		$	629



QUARTERLY CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
	(As Restated)
	Three Months Ended March 31, 2013 (10)			Six Months Ended June 30, 2013 (11)			Nine Months Ended September 30, 2013 (12)
Cash flows from operating activities:
Net income (loss)	$	14		$	134		$	364
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation of revenue earning equipment	572			1,186			1,833
Depreciation and amortization, non-fleet assets	84			167			249
Amortization and write-off of deferred financing costs	11			25			41
Amortization and write-off of debt discount	(1		)	(3		)	(5		)
Stock-based compensation charges	8			18			31
Provision for receivables allowance	21			35			59
Deferred taxes on income	37			93			177
Impairment charges and asset write-downs	—			2			42
Other	(1		)	(4		)	(4		)
Changes in assets and liabilities:
Receivables	(43		)	(229		)	(182		)
Inventories, prepaid expenses and other assets	(24		)	(41		)	(2		)
Accounts payable	46			89			88
Accrued liabilities	27			5			118
Accrued taxes	1			(11		)	26
Public liability and property damage	(10		)	(15		)	(2		)
Net cash provided by operating activities	742			1,451			2,833
Cash flows from investing activities:
Net change in restricted cash and cash equivalents	127			153			24
Revenue earning equipment expenditures	(3,254		)	(6,812		)	(9,318		)
Proceeds from disposal of revenue earning equipment	2,236			3,738			5,661
Capital asset expenditures, non-fleet	(78		)	(166		)	(250		)
Proceeds from disposal of property and equipment	24			45			66
Acquisitions, net of cash acquired	(3		)	(14		)	(14		)
Equity method investment	—			(213		)	(213		)
Repayments of loans with Hertz Global Holdings, Inc.	(17		)	(25		)	(39		)
Proceeds from loans with Hertz Global Holdings, Inc.	16			37			40
Other investing activities	—			(4		)	(3		)
Net cash used in investing activities	(949		)	(3,261		)	(4,046		)



QUARTERLY CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)
(In millions)
	(As Restated)
	Three Months Ended March 31, 2013 (10)			Six Months Ended June 30, 2013 (11)			Nine Months Ended September 30, 2013 (12)
Cash flows from financing activities:
Proceeds from issuance of long-term debt	1,202			1,204			1,208
Repayments of long-term debt	(299		)	(321		)	(371		)
Short-term borrowings:
Proceeds	129			332			472
Payments	(195		)	(436		)	(711		)
Proceeds under the revolving lines of credit	1,579			3,680			5,250
Payments under the revolving lines of credit	(1,611		)	(2,218		)	(4,167		)
Payment of financing costs	(15		)	(20		)	(27		)
Dividend paid to Hertz Global Holdings, Inc.	(467		)	(480		)	(480		)
Other	1			4			5
Net cash provided by financing activities	324			1,745			1,179
Effect of foreign exchange rate changes on cash and cash equivalents	(8		)	(9		)	(2		)
Net change in cash and cash equivalents during the period	109			(74		)	(36		)
Cash and cash equivalents at beginning of period	541			541			541
Cash and cash equivalents at end of period	$	650		$	467		$	505

The following tables present the impact of the restatement adjustments for each quarterly period within fiscal 2013 presented in the tables on the preceding pages. As further described in Note 2 - "Restatement," During the fourth quarter of 2013, the Company identified certain out of period errors related to its previously issued financial statements, which included the condensed consolidated financial statements for the quarterly and year to date periods ended March 31, June 30 and September 30, 2013 ("first", "second" and "third" quarter, respectively). While these errors did not, individually or in the aggregate, result in a material misstatement of the Company's previously issued consolidated financial statements, correcting these, and the errors for periods 2012 and prior, in the fourth quarter of 2013 would have been material to that quarter. Accordingly, management revised its previously reported condensed consolidated financial statements in the Form 10-K for the year ended December 31, 2013 filed with the SEC on March 31, 2014, however, presentation of quarterly and year to date information for the periods above included in the filing was limited to the statements of operations. Therefore, the column in the tables below labeled "As Previously Reported" reflect the financial information for the first, second and third quarters of 2013 as presented in their respective filings on Form 10-Q as filed with the SEC on May 2, August 2, and November 7, 2013, respectively.

The column in the tables below labeled "Revision Adjustment" reflect the revisions for the respective quarterly periods in 2013. The column in the tables below labeled "As Revised" reflect the quarterly financial information that was revised in the 2013 Form 10-K.

The column in the tables below labeled "Restatement Adjustment" reflect the adjustments associated with the restatement of 2013 consolidated financial statements as further described in Note 2 - "Restatement." The references identified in the tickmarks to the 2013 tables directly correlate to the adjustments detailed below. Amounts are computed independently each quarter, therefore, the sum of the quarterly amounts may not equal the total amount for the respective year due to rounding.

Reserve and Estimates Recognition Restatement Adjustments

(a) Allowance for Doubtful Accounts and Credit Memos (U.S. Car Rental) - The historical methodology employed for doubtful customer accounts and credit memo allowances for the U.S. Car Rental business inappropriately used inaccurate write-off rates for receivables, aggregated receivables with significantly different credit risks for purposes of analysis and used assumptions in setting the reserve for credit memos that were not supported. Inappropriate tone at the top, among other factors, may have contributed to this restatement matter.

(b) Allowance for Doubtful Accounts and Credit Memos (International Car Rental) - The historical methodology employed for doubtful customer accounts and credit memo allowances for the international car rental business inappropriately used inaccurate write-off rates for receivables, aggregated receivables with significantly different credit risks for purposes of analysis and did not include a reserve for credit memos. Inappropriate tone at the top, among other factors, may have contributed to this restatement matter.

(c) Allowance for Doubtful Accounts and Credit Memos (Worldwide Equipment Rental) - The historical methodology employed for doubtful customer accounts and credit memo allowances for the worldwide equipment rental business inappropriately used rates that differed from historical norms, used unsupported assumptions, and contained formulaic errors. In addition, changes to the methodology in 2012 reduced the reserve requirement and slowed the rate of recording account write-offs. Inappropriate tone at the top, among other factors, may have contributed to this restatement matter.

(d) Subrogation (Damage) Receivables and the Related Allowance for Doubtful Accounts (U.S. Car Rental) - This restatement matter relates to estimated recoveries from third parties responsible for damages to vehicles. The historical methodologies used to estimate the unbilled balances and the allowance accounts inappropriately used assumptions that lacked support, including using write-offs rather than collection history as a key assumption and changed methodologies without any supported basis, as well as contained formulaic errors. In addition, there were instances in which the amount recorded for the allowance was significantly less than the amount calculated based on the methodology in place at the time. The Company has revised the methodology used to calculate subrogation claims to utilize the ratio of claims collected compared to damage expense incurred. Inappropriate tone at the top, among other factors, may have contributed to this restatement matter.

(e) Subrogation (Damage) Receivables and the Related Allowance for Doubtful Accounts (International Car Rental) - This restatement matter relates to estimated recoveries from third parties responsible for damages to vehicles. The historical methodologies used to estimate the allowance accounts inappropriately used assumptions that lacked support, including using write-offs rather than collection history as a key assumption, as well as contained formulaic errors. In addition, there were instances in which the amount recorded for the allowance was significantly less than the amount calculated based on the methodology in place at the time.

(f) Accrued Salvaged Vehicles (U.S. Car Rental) - This restatement matter relates to the reserve for estimated vehicle damages incurred in the U.S. car rental business but not reported as of period ends. The methodology used to estimate the reserve was changed without appropriate supporting documentation and the most significant, required element of the reserve was eliminated. As part of the restatement process, the Company has reinstated the previous methodology. Inappropriate tone at the top, among other factors, may have contributed to this restatement matter.

(g) Credit Card Chargebacks (U.S. and International Car Rental) - The restatement matter relates to reserves established to accrue for future credit card chargebacks pertaining to completed revenue transactions with customers and for chargebacks received from credit card providers. The reserves were understated in 2011, 2012 and 2013 for a variety of reasons. These reasons included (1) the Company inappropriately changed the methodology for computing reserves established to accrue for future chargebacks in 2013 and (2) the Company erroneously excluded chargebacks received from credit card providers from the balances used to calculate the allowance for doubtful accounts. Inappropriate tone at the top, among other factors, may have contributed to this restatement matter.

Accounting for Fleet Restatement Adjustments

(h) Rental Equipment Refurbishment (Worldwide Equipment Rental) - This restatement matter relates to refurbishment designed to extend the useful life of rental equipment used in the worldwide equipment rental business. At the time of refurbishment, the Company improperly reduced the cost basis of rental equipment that was subject to useful life extension. The reduction was effected by reversing accumulated depreciation on refurbished equipment as an offset to original cost. Inappropriate tone at the top, among other factors, may have contributed to this restatement matter.

Fixed Assets Restatement Adjustments

(i) Fixed Assets and Construction in Progress and Capitalized Software (U.S. Car Rental, Worldwide Equipment Rental and Corporate) - This restatement matter relates to accounting for non-fleet fixed assets (e.g., leasehold improvements and property improvements) and capitalized software expenditures. The adjustments associated with non-fleet fixed assets and capitalized software primarily relate to the Company’s identification of (1) expenditures that were capitalized rather than expensed, (2) the failure to write off abandoned projects included in construction in progress on a timely basis, (3) the failure to write off assets no longer in service, and (4) depreciation adjustments associated with assets that should have been placed in service at a date that preceded the placed-in-service date, including assets that had not yet been transferred from construction in progress to in service. Inappropriate tone at the top, among other factors, may have contributed to this restatement matter.

Brazil Restatement Adjustment

(j) Brazil Adjustments (International Car Rental) - This restatement matter relates to the Brazilian operations of the International Car Rental business. Allowances for uncollectible balances were calculated using inappropriate methodologies, and certain assets, reserves for legal expenses and litigation, and intercompany account balances were not properly supported and consequently were written off. Inappropriate tone at the top, among other factors, may have contributed to this restatement matter.

Reclassifications

(k) Cash reclassifications (All Segments) - The Company reclassified negative cash balances representing outstanding checks to accounts payable at period end despite, in some cases, the existence of bank agreements with legal right of offset against cash balances with the same banks.

(l) Internal Use Software reclassification (All Segments) - The Company reclassified all internal use software asset balances, including accumulated depreciation on these assets, to intangible assets. Previously, these assets were reported in property and equipment.

Other Restatement Adjustments

(m) Accrued Unbilled Accounts Receivable (U.S. Car Rental) - The Company over accrued revenue on open rental agreements related to the U.S. Car Rental business at period end because its calculation methodology was based on too limited a sample of open rental agreements. Also, vehicles that had been returned before period end, but that had not been processed as returned until after the look back period used in the calculation methodology, were treated as rented to customers at period end. Further, the rates utilized for certain types of transactions in the computation for the unbilled receivables were erroneous.

(n) Vehicle License Fees (U.S. Car Rental) - This restatement matter relates to vehicle registration cost amortization in the U.S. Car Rental business. The Company inappropriately changed its amortization period for vehicle registration cost to the life of the vehicle instead of the life of the registration or license. Inappropriate tone at the top, among other factors, may have contributed to this restatement matter.

(o) Hertz #1 Gold Points Liability (U.S. Car Rental) - The Company has made adjustments to the reserves established for the liability associated with the redemption of points earned by customers enrolled in the Hertz Gold Plus Rewards Program. The Company determined that these reserves were understated in 2011, 2012, and 2013 for a variety of reasons. These reasons included: (1) a miscalculation of the rate at which customers would redeem points, (2) the use of incorrect income statement accounts in calculating the incremental costs associated with customers’ use of points, (3) the failure to reconcile the account from 2011 through 2013 and (4) a systems issue that prevented certain customer points from expiring as they should have when the Company modified its Gold Points expiration policy in 2011.

(p) Accounts payable (All Segments) - The accruals for expenses paid utilizing credit cards did not include amounts which have been incurred and are in the process of being billed to the Company. In addition, the manual process and lack of automated interface controls with legacy systems and the failure to complete sufficient personnel training on the accounts payable Oracle ERP system module, among other factors, resulted in erroneous accruals including purchase orders, marketing and consulting spending.

(q) Asset Retirement Obligation (All Segments) - This restatement matter relates to asset restoration costs associated with contractual obligations included in lease agreements. The Company failed to account for global contractual restoration costs on certain of its leased facilities, including its European headquarters at Uxbridge, United Kingdom. Inappropriate tone at the top, among other factors, may have contributed to this restatement matter.

(r) Other Restatement Adjustments (All Segments) - There are certain other restatement matters not otherwise described in items (a) through (q) of this Note the adjustments of which are individually insignificant but, in aggregate with all the restatement matters, are significant to the financial statements.

(s) Taxes on income (loss) - There was a reduction in the amount of tax provision recognized as a result of the restatement adjustments identified above.

(t) Change in Accounting Principle - In 2014, the Company changed its method of calculating the market-related value of pension assets for purposes of determining the expected return on plan assets and accounting for asset gains and losses.

(u) Tax Reclassification - Separately from the tax impact of the company’s restatement, the company also corrected a balance sheet reclassification of certain of it’s tax liabilities from accrued taxes to deferred taxes on income, net.

(1)



QUARTERLY CONSOLIDATED BALANCE SHEET
(In millions, except par value and share data)
	March 31, 2013
	As Previously Reported			Revision Adjustment			As Revised			Restatement Adjustment			Ref	As Restated
ASSETS
Cash and cash equivalents	$	654		$	(1	)	$	653		$	(3	)	k	$	650
Restricted cash and cash equivalents	425			—			425			(10		)	k	415
Receivables, net of allowance of $58	1,554			(14		)	1,540			(92		)	a, b, c, d, e, g, j, m, r	1,448
Due from Hertz Global Holdings, Inc.	13			—			13			—				13
Inventories, net	110			—			110			(3		)	p, r	107
Prepaid expenses and other assets	549			(4		)	545			(2		)	n, r	543
Revenue earning equipment:
Cars	13,695			(52		)	13,643			(11		)	j, p	13,632
Less accumulated depreciation - cars	(1,995		)	40			(1,955		)	(3		)	j, r	(1,958		)
Other equipment	3,313			—			3,313			23			h, p	3,336
Less accumulated depreciation - other equipment	(1,044		)	—			(1,044		)	(16		)	h	(1,060		)
Revenue earning equipment, net	13,969			(12		)	13,957			(7		)		13,950
Property and equipment:
Land, buildings and leasehold improvements	1,303			—			1,303			(79		)	i, l, r, q	1,224
Service equipment and other	1,242			—			1,242			(209		)	i, l	1,033
Less accumulated depreciation	(1,087		)	—			(1,087		)	96			i, l, r	(991		)
Property and equipment, net	1,458			—			1,458			(192		)		1,266
Other intangible assets, net	4,002			(2		)	4,000			161			l, r	4,161
Goodwill	1,353			(10		)	1,343			3			q	1,346
Total assets	$	24,087		$	(43	)	$	24,044		$	(145	)		$	23,899
LIABILITIES AND EQUITY
Accounts payable	$	1,305		—			$	1,305		$	32		k, p	$	1,337
Accrued liabilities	1,206			(6		)	1,200			60			f, g, j, m, o, q, t	1,260
Accrued taxes, net	192			—			192			(46		)	r, s, u	146
Debt	15,876			—			15,876			—				15,876
Public liability and property damage	321			—			321			1			r	322
Deferred taxes on income, net	2,726			(14		)	2,712			(25		)	s, u	2,687
Total liabilities	21,626			(20		)	21,606			22				21,628
Commitments and contingencies
Equity:
Common Stock, $0.01 par value, 3,000 shares authorized, 100 shares issued and outstanding	—			—			—			—				—
Additional paid-in capital	3,519			—			3,519			1			r	3,520
Accumulated deficit	(1,007		)	(23		)	(1,030		)	(169		)	a-t	(1,199		)
Accumulated other comprehensive loss	(51		)	—			(51		)	1			q, t	(50		)
Total equity	2,461			(23		)	2,438			(167		)		2,271
Total liabilities and equity	$	24,087		$	(43	)	$	24,044		$	(145	)		$	23,899

(2)



QUARTERLY CONSOLIDATED BALANCE SHEET
(In millions, except par value and share data)
	June 30, 2013
	As Previously Reported			Revision Adjustment			As Revised				Restatement Adjustment			Ref	As Restated
ASSETS										—
Cash and cash equivalents	$	483		$	(1	)	$	482			$	(15	)	k	$	467
Restricted cash and cash equivalents	393			—			393				(3		)	k	390
Receivables, net of allowance of $56	1,656			(16		)	1,640				(95		)	a, b, c, d, e, g, j, m, r	1,545
Due from Hertz Global Holdings, Inc.	1			—			1				—				1
Inventories, net	128			—			128				(1		)	p, r	127
Prepaid expenses and other assets	762			(3		)	759				(4		)	n, r	755
Revenue earning equipment:
Cars	15,490			(63		)	15,427				(9		)	j, p	15,418
Less accumulated depreciation - cars	(2,169		)	49			(2,120		)		(5		)	j, r	(2,125		)
Other equipment	3,425			—			3,425				27			h, p	3,452
Less accumulated depreciation - other equipment	(1,040		)	—			(1,040		)		(22		)	h	(1,062		)
Revenue earning equipment, net	15,706			(14		)	15,692				(9		)		15,683
Property and equipment:
Land, buildings and leasehold improvements	1,334			—			1,334				(93		)	i, l, r, q	1,241
Service equipment and other	1,258			—			1,258				(217		)	i, l	1,041
Less accumulated depreciation	(1,126		)	—			(1,126		)		105			i, l, r	(1,021		)
Property and equipment, net	1,466			—			1,466				(205		)		1,261
Other intangible assets, net	3,969			(2		)	3,967				169			l, r	4,136
Goodwill	1,366			(7		)	1,359				4			q	1,363
Total assets	$	25,930		$	(43	)	$	25,887			$	(159	)		$	25,728
LIABILITIES AND EQUITY
Accounts payable	$	1,484		$	1		$	1,485			35			k, p	$	1,520
Accrued liabilities	1,181			2			1,183				59			f, g, j, m, o, q, t	1,242
Accrued taxes, net	184			(1		)	183				(45		)	r, s, u	138
Debt	17,394			—			17,394				—				17,394
Public liability and property damage	328			—			328				—			r	328
Deferred taxes on income, net	2,787			(20		)	2,767				(28		)	s, u	2,739
Total liabilities	23,358			(18		)	23,340				21				23,361
Commitments and contingencies
Equity:										—
Common Stock, $0.01 par value, 3,000 shares authorized, 100 shares issued and outstanding	—			—			—				—				—
Additional paid-in capital	3,534			(2		)	3,532				1			r	3,533
Accumulated deficit	(889		)	(23		)	(912		)		(179		)	a-t	(1,091		)
Accumulated other comprehensive loss	(73		)	—			(73		)		(2		)	q, t	(75		)
Total equity	2,572			(25		)	2,547				(180		)		2,367
Total liabilities and equity	$	25,930		$	(43	)	$	25,887			$	(159	)		$	25,728

(3)



QUARTERLY CONSOLIDATED BALANCE SHEET
(In millions)
	September 30, 2013
	As Previously Reported			Revision Adjustment			As Revised			Restatement Adjustment			Ref	As Restated
ASSETS
Cash and cash equivalents	$	548		$	(1	)	$	547		$	(42	)	k	$	505
Restricted cash and cash equivalents	521			—			521			1			k	522
Receivables, net of allowance of $67	1,701			(16		)	1,685			(88		)	a, b, c, d, e, g, j, m, r	1,597
Due from Hertz Global Holdings, Inc.	11			—			11			—				11
Inventories, net	107			—			107			(3		)	p, r	104
Prepaid expenses and other assets	677			(4		)	673			(7		)	n, r	666
Revenue earning equipment:
Cars	15,245			(70		)	15,175			2			j, p	15,177
Less accumulated depreciation - cars	(2,440		)	50			(2,390		)	(6		)	j, r	(2,396		)
Other equipment	3,487			—			3,487			27			h, p	3,514
Less accumulated depreciation - other equipment	(1,077		)	—			(1,077		)	(25		)	h	(1,102		)
Revenue earning equipment, net	15,215			(20		)	15,195			(2		)		15,193
Property and equipment:
Land, buildings and leasehold improvements	1,350			1			1,351			(67		)	i, l, r, q	1,284
Service equipment and other	1,221			—			1,221			(271		)	i, l	950
Less accumulated depreciation	(1,080		)	—			(1,080		)	122			i, l, r	(958		)
Property and equipment, net	1,491			1			1,492			(216		)		1,276
Other intangible assets, net	3,945			—			3,945			181			l, r	4,126
Goodwill	1,366			(7		)	1,359			4			q	1,363
Total assets	$	25,582		$	(47	)	$	25,535		$	(172	)		$	25,363
LIABILITIES AND EQUITY
Accounts payable	$	952		$	1		953			28			k, p	$	981
Accrued liabilities	1,284			5			1,289			67			f, g, j, m, o, q, t	1,356
Accrued taxes, net	228			(1		)	227			(45		)	r, s, u	182
Debt	17,055			—			17,055			—				17,055
Public liability and property damage	347			—			347			—			r	347
Deferred taxes on income, net	2,865			(22		)	2,843			(31		)	s, u	2,812
Total liabilities	22,731			(17		)	22,714			19				22,733
Commitments and contingencies
Equity:
Common Stock, $0.01 par value, 3,000 shares authorized, 100 shares issued and outstanding	—			—			—			—				—
Additional paid-in capital	3,549			(2		)	3,547			1			r	3,548
Accumulated deficit	(647		)	(28		)	(675		)	(186		)	a-t	(861		)
Accumulated other comprehensive loss	(51		)	—			(51		)	(6		)	q, t	(57		)
Total equity	2,851			(30		)	2,821			(191		)		2,630
Total liabilities and equity	$	25,582		$	(47	)	$	25,535		$	(172	)		$	25,363

(4)



QUARTERLY CONSOLIDATED STATEMENT OF OPERATIONS
(In millions)

	For the Three Months Ended March 31, 2013
	As Previously Reported			Revision Adjustment			As Revised			Restatement Adjustment			Ref	As Restated
Revenues:
Worldwide car rental	$	1,957		$	—		$	1,957		$	(2	)	a, b, g, m, r	$	1,955
Worldwide equipment rental	351			—			351			2			c, r	353
All other operations	128			1			129			—				129
Total revenues	2,436			1			2,437			—				2,437
Expenses:
Direct operating	1,351			7			1,358			6			d, e, f, j, m, n, o, p, q, r, t	1,364
Depreciation of revenue earning equipment and lease charges, net	587			(7		)	580			9			r	589
Selling, general and administrative	252			(4		)	248			2			a, b, c, d, e, i, j, o, p, q, r	250
Interest expense, net	161			—			161			—			r	161
Other expense, net	(1		)	3			2			(2		)	r	—
Total expenses	2,350			(1		)	2,349			15				2,364
Income (loss) before income taxes	86			2			88			(15		)		73
(Provision) benefit for taxes on income	(60		)	(4		)	(64		)	5			s	(59		)
Net income (loss)	$	26		$	(2	)	$	24		$	(10	)		$	14

(5)



QUARTERLY CONSOLIDATED STATEMENT OF OPERATIONS
(In millions)

	For the Three Months Ended June 30, 2013
	As Previously Reported			Revision Adjustment			As Revised			Restatement Adjustment			Ref	As Restated
Revenues:
Worldwide car rental	$	2,195		$	—		$	2,195		$	2		a, b, g, m, r	$	2,197
Worldwide equipment rental	384			—			384			(3		)	c, r	381
All other operations	136			(6		)	130			—				130
Total revenues	2,715			(6		)	2,709			(1		)		2,708
Expenses:
Direct operating	1,406			8			1,414			3			d, e, f, j, m, n, o, p, q, r, t	1,417
Depreciation of revenue earning equipment and lease charges, net	641			(13		)	628			4			r	632
Selling, general and administrative	275			5			280			7			a, b, c, d, e, i, j, o, p, q, r	287
Interest expense, net	168			—			168			—			r	168
Other income, net	(1		)	—			(1		)	(1		)	r	(2		)
Total expenses	2,489			—			2,489			13				2,502
Income (loss) before income taxes	226			(6		)	220			(14		)		206
(Provision) benefit for taxes on income	(96		)	6			(90		)	4			s	(86		)
Net income (loss)	$	130		$	—		$	130		$	(10	)		$	120

(6)



QUARTERLY CONSOLIDATED STATEMENT OF OPERATIONS
(In millions)

	For the Six Months Ended June 30, 2013
	As Previously Reported			Revision Adjustment			As Revised			Restatement Adjustment			Ref	As Restated
Revenues:
Worldwide car rental	$	4,152		$	—		$	4,152		$	1		a, b, g, m, r	$	4,153
Worldwide equipment rental	735			—			735			(1		)	c, r	734
All other operations	264			(5		)	259			(1		)		258
Total revenues	5,151			(5		)	5,146			(1		)		5,145
Expenses:
Direct operating	2,757			16			2,773			8			d, e, f, j, m, n, o, p, q, r, t	2,781
Depreciation of revenue earning equipment and lease charges, net	1,228			(20		)	1,208			12			r	1,220
Selling, general and administrative	528			1			529			9			a, b, c, d, e, i, j, o, p, q, r	538
Interest expense, net	329			—			329			—			r	329
Other (income) expense, net	(2		)	2			—			(2		)	r	(2		)
Total expenses	4,840			(1		)	4,839			27				4,866
Income (loss) before income taxes	311			(4		)	307			(28		)		279
(Provision) benefit for taxes on income	(155		)	2			(153		)	8			s	(145		)
Net income (loss)	$	156		$	(2	)	$	154		$	(20	)		$	134

(7)



QUARTERLY CONSOLIDATED STATEMENT OF OPERATIONS
(In millions)

	For the Three Months Ended September 30, 2013
	As Previously Reported			Revision Adjustment			As Revised			Restatement Adjustment			Ref	As Restated
Revenues:
Worldwide car rental	$	2,534		$	—		$	2,534		$	4		a, b, g, m, r	$	2,538
Worldwide equipment rental	402			—			402			1			c, r	403
All other operations	134			—			134			—				134
Total revenues	3,070			—			3,070			5				3,075
Expenses:
Direct operating	1,525			15			1,540			7			d, e, f, j, m, n, o, p, q, r, t	1,547
Depreciation of revenue earning equipment and lease charges, net	677			(2		)	675			(3		)	r	672
Selling, general and administrative	278			(6		)	272			10			a, b, c, d, e, i, j, o, p, q, r	282
Interest expense, net	173			—			173			—			r	173
Other expense, net	44			—			44			—			r	44
Total expenses	2,697			7			2,704			14				2,718
Income (loss) before income taxes	373			(7		)	366			(9		)		357
(Provision) benefit for taxes on income	(131		)	2			(129		)	1			s	(128		)
Net income (loss)	$	242		$	(5	)	$	237		$	(8	)		$	229

(8)



QUARTERLY CONSOLIDATED STATEMENT OF OPERATIONS
(In millions)

	For the Nine Months Ended September 30, 2013
	As Previously Reported			Revision Adjustment			As Revised			Restatement Adjustment			Ref	As Restated
Revenues:
Worldwide car rental	$	6,686		$	—		$	6,686		$	4		a, b, g, m, r	$	6,690
Worldwide equipment rental	1,137			—			1,137			1			c, r	1,138
All other operations	397			(5		)	392			—				392
Total revenues	8,220			(5		)	8,215			5				8,220
Expenses:
Direct operating	4,283			30			4,313			15			d, e, f, j, m, n, o, p, q, r, t	4,328
Depreciation of revenue earning equipment and lease charges, net	1,905			(23		)	1,882			11			r	1,893
Selling, general and administrative	803			(3		)	800			19			a, b, c, d, e, i, j, o, p, q, r	819
Interest expense, net	501			—			501			1			r	502
Other expense, net	43			2			45			(3		)	r	42
Total expenses	7,535			6			7,541			43				7,584
Income (loss) before income taxes	685			(11		)	674			(38		)		636
(Provision) benefit for taxes on income	(287		)	4			(283		)	11			s	(272		)
Net income (loss)	$	398		$	(7	)	$	391		$	(27	)		$	364

(9)



QUARTERLY CONSOLIDATED STATEMENT OF OPERATIONS
(In millions)

	For the Three Months Ended December 31, 2013
	As Previously Reported			Revision Adjustment		As Revised			Restatement Adjustment			Ref	As Restated
Revenues:
Worldwide car rental	$	2,020		$	—	$	2,020		$	(1	)	a, b, g, m, r	$	2,019
Worldwide equipment rental	401			—		401			—			c, r	401
All other operations	135			—		135			—				135
Total revenues	2,556			—		2,556			(1		)		2,555
Expenses:
Direct operating	1,439			—		1,439			10			d, e, f, j, m, n, o, p, q, r, t	1,449
Depreciation of revenue earning equipment and lease charges, net	643			—		643			(2		)	r	641
Selling, general and administrative	222			—		222			12			a, b, c, d, e, i, j, o, p, q, r	234
Interest expense, net	166			—		166			2			r	168
Other expense, net	21			—		21			—			r	21
Total expenses	2,491			—		2,491			22				2,513
Income (loss) before income taxes	65			—		65			(23		)		42
(Provision) benefit for taxes on income	(62		)	—		(62		)	6			s	(56		)
Net loss	$	3		$	—	$	3		$	(17	)		$	(14	)

(10)



QUARTERLY CONSOLIDATED STATEMENT OF CASH FLOWS
(In millions)

	For the Three Months Ended March 31, 2013
	As Previously Reported			Revision Adjustment			As Revised			Restatement Adjustment			Ref	As Restated
Cash flows from operating activities:
Net income (loss)	$	26		$	(2	)	$	24		$	(10	)	a, b, c, d, e, f, g, i, j, m ,n, o, p, q, r, s	$	14
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation of revenue earning equipment, net	571			(6		)	565			7			f, r, j	572
Depreciation and amortization, non-fleet assets	81			—			81			3			i, r	84
Amortization and write-off of deferred financing costs	11			—			11			—				11
Amortization and write-off of debt discount	(1		)	—			(1		)	—				(1		)
Stock-based compensation charges	8			—			8			—				8
Loss on extinguishment of debt	—			—			—			—				—
Provision for receivables allowance	20			—			20			1			a, b, c, d, e, g, j, r	21
Deferred taxes on income	41			—			41			(4		)	r, s	37
Impairment charges and asset write-downs	—			—			—			—				—
Other	(3		)	3			—			(1		)	r	(1		)
Changes in assets and liabilities, net of effects of acquisition:
Receivables	(40		)	8			(32		)	(11		)	a, b, c, d, e, g, j, r	(43		)
Inventories, prepaid expenses and other assets	(47		)	22			(25		)	1			n, r	(24		)
Accounts payable	38			—			38			8			k, p, r	46
Accrued liabilities	19			3			22			5			o, q, r	27
Accrued taxes	25			(24		)	1			—			s, j	1
Public liability and property damage	(10		)	—			(10		)	—			r	(10		)
Net cash provided by (used in) operating activities	739			4			743			(1		)		742
Cash flows from investing activities:
Net change in restricted cash and cash equivalents	143			(20		)	123			4			k	127
Revenue earning equipment expenditures	(3,253		)	3			(3,250		)	(4		)	h	(3,254		)
Proceeds from disposal of revenue earning equipment	2,238			—			2,238			(2		)	h, f, r	2,236
Capital asset expenditures, non-fleet	(80		)	(1		)	(81		)	3			i, r, p	(78		)
Proceeds from disposal of property and equipment	23			—			23			1			i	24
Acquisitions, net of cash acquired	(3		)	—			(3		)	—				(3		)
Repayments of loans with Hertz Global Holdings, Inc.	(17		)	—			(17		)	—				(17		)
Proceeds from loans with Hertz Global Holdings, Inc.	16			—			16			—				16
Other investing activities	—			—			—			—				—
Net cash provided by (used in) investing activities	(933		)	(18		)	(951		)	2				(949		)



QUARTERLY CONSOLIDATED STATEMENT OF CASH FLOWS (Continued)
(In millions)

	For the Three Months Ended March 31, 2013
	As Previously Reported			Revision Adjustment			As Revised			Restatement Adjustment			Ref	As Restated
Cash flows from financing activities:
Proceeds from issuance of long-term debt	1,202			—			1,202			—				1,202
Repayments of long-term debt	(299		)	—			(299		)	—				(299		)
Short-term borrowings:										—
Proceeds	129			—			129			—				129
Payments	(195		)	—			(195		)	—				(195		)
Proceeds under the revolving lines of credit	1,579			—			1,579			—				1,579
Payments under the revolving lines of credit	(1,611		)	—			(1,611		)	—				(1,611		)
Payment of financing costs	(15		)	—			(15		)	—				(15		)
Dividend paid to Hertz Global Holdings, Inc.	(467		)	—			(467		)	—				(467		)
Other	—			—			—			1				1
Net cash provided by financing activities	323			—			323			1				324
Effect of foreign exchange rate changes on cash and cash equivalents	(8		)	—			(8		)	—				(8		)
Net change in cash and cash equivalents during the period	121			(14		)	107			2				109
Cash and cash equivalents at beginning of period	533			13			546			(5		)	k	541
Cash and cash equivalents at end of period	$	654		$	(1	)	$	653		$	(3	)	k	$	650

(11)



QUARTERLY CONSOLIDATED STATEMENT OF CASH FLOWS
(In millions)

	For the Six Months Ended June 30, 2013
	As Previously Reported			Revision Adjustment			As Revised			Restatement Adjustment			Ref	As Restated
Cash flows from operating activities:
Net income (loss)	$	156		$	(2	)	$	154		$	(20	)	a, b, c, d, e, f, g, i, j, m ,n, o, p, q, r, s	$	134
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation of revenue earning equipment, net	1,195			(21		)	1,174			12			f, r, j	1,186
Depreciation and amortization, non-fleet assets	163			—			163			4			i, r	167
Amortization and write-off of deferred financing costs	25			—			25			—				25
Amortization and write-off of debt discount	(3		)	—			(3		)	—				(3		)
Stock-based compensation charges	20			(2		)	18			—				18
Loss on extinguishment of debt	—			—			—			—				—
Provision for receivables allowance	33			—			33			2			a, b, c, d, e, g, j, r	35
Deferred taxes on income	104			(2		)	102			(9		)	r, s	93
Impairment charges and asset write-downs	2			—			2			—				2
Other	(6		)	1			(5		)	1			r	(4		)
Changes in assets and liabilities, net of effects of acquisition:
Receivables	(239		)	8			(231		)	2			a, b, c, d, e, g, j, r	(229		)
Inventories, prepaid expenses and other assets	(64		)	24			(40		)	(1		)	n, r	(41		)
Accounts payable	85			—			85			4			k, p, r	89
Accrued liabilities	(6		)	10			4			1			o, q, r	5
Accrued taxes	16			(27		)	(11		)	—			s, j	(11		)
Public liability and property damage	(15		)	—			(15		)	—			r	(15		)
Net cash provided by (used in) operating activities	1,466			(11		)	1,455			(4		)		1,451
Cash flows from investing activities:
Net change in restricted cash and cash equivalents	175			(20		)	155			(2		)	k	153
Revenue earning equipment expenditures	(6,826		)	17			(6,809		)	(3		)	h	(6,812		)
Proceeds from disposal of revenue earning equipment	3,743			—			3,743			(5		)	h, f, r	3,738
Capital asset expenditures, non-fleet	(168		)	—			(168		)	2			i, r, p	(166		)
Proceeds from disposal of property and equipment	43			—			43			2			i	45
Acquisitions, net of cash acquired	(16		)	—			(16		)	2				(14		)
Equity method investment	(213		)	—			(213		)	—				(213		)
Repayments of loans with Hertz Global Holdings, Inc.	(25		)	—			(25		)	—				(25		)
Proceeds from loans with Hertz Global Holdings, Inc.	37			—			37			—				37
Other investing activities	(2		)	—			(2		)	(2		)	r	(4		)
Net cash provided by (used in) investing activities	(3,252		)	(3		)	(3,255		)	(6		)		(3,261		)



QUARTERLY CONSOLIDATED STATEMENT OF CASH FLOWS (Continued)
(In millions)

	For the Six Months Ended June 30, 2013
	As Previously Reported			Revision Adjustment			As Revised			Restatement Adjustment			Ref	As Restated
Cash flows from financing activities:
Proceeds from issuance of long-term debt	1,204			—			1,204			—				1,204
Repayments of long-term debt	(321		)	—			(321		)	—				(321		)
Short-term borrowings:										—
Proceeds	332			—			332			—				332
Payments	(436		)	—			(436		)	—				(436		)
Proceeds under the revolving lines of credit	3,680			—			3,680			—				3,680
Payments under the revolving lines of credit	(2,218		)	—			(2,218		)	—				(2,218		)
Payment of financing costs	(21		)	—			(21		)	1				(20		)
Dividend paid to Hertz Global Holdings, Inc.	(480		)	—			(480		)	—				(480		)
Other	4			—			4			—				4
Net cash provided by financing activities	1,744			—			1,744			1				1,745
Effect of foreign exchange rate changes on cash and cash equivalents	(8		)	—			(8		)	(1		)		(9		)
Net change in cash and cash equivalents during the period	(50		)	(14		)	(64		)	(10		)		(74		)
Cash and cash equivalents at beginning of period	533			13			546			(5		)	k	541
Cash and cash equivalents at end of period	$	483		$	(1	)	$	482		$	(15	)	k	$	467

(12)



QUARTERLY CONSOLIDATED STATEMENT OF CASH FLOWS
(In millions)

	For the Nine Months Ended September 30, 2013
	As Previously Reported			Revision Adjustment			As Revised			Restatement Adjustment				As Restated
Cash flows from operating activities:
Net income (loss)	$	398		$	(7	)	$	391		$	(27	)	a, b, c, d, e, f, g, i, j, m ,n, o, p, q, r, s	$	364
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation of revenue earning equipment, net	1,847			(22		)	1,825			8			f, r, j	1,833
Depreciation and amortization, non-fleet assets	241			—			241			8			i, r	249
Amortization and write-off of deferred financing costs	41			—			41			—				41
Amortization and write-off of debt discount	(5		)	—			(5		)	—				(5		)
Stock-based compensation charges	33			(2		)	31			—				31
Loss on extinguishment of debt	—			—			—			—				—
Provision for receivables allowance	56			—			56			3			a, b, c, d, e, g, j, r	59
Deferred taxes on income	192			(5		)	187			(10		)	r, s	177
Gain on sale of property and equipment	—			—			—			—
Impairment charges and asset write-downs	40			2			42			—			r	42
Other	(4		)	(2		)	(6		)	2				(4		)
Changes in assets and liabilities, net of effects of acquisition:
Receivables	(183		)	8			(175		)	(7		)	a, b, c, d, e, g, j, r	(182		)
Inventories, prepaid expenses and other assets	(26		)	26			—			(2		)	n, r	(2		)
Accounts payable	92			1			93			(5		)	k, p, r	88
Accrued liabilities	101			12			113			5			o, q, r	118
Accrued taxes	52			(26		)	26			—			s, j	26
Public liability and property damage	(2		)	—			(2		)	—			r	(2		)
Net cash provided by (used in) operating activities	2,873			(15		)	2,858			(25		)		2,833
Cash flows from investing activities:
Net change in restricted cash and cash equivalents	50			(20		)	30			(6		)	k	24
Revenue earning equipment expenditures	(9,341		)	22			(9,319		)	1			h	(9,318		)
Proceeds from disposal of revenue earning equipment	5,669			—			5,669			(8		)	h, f, r	5,661
Capital asset expenditures, non-fleet	(246		)	—			(246		)	(4		)	i, r, p	(250		)
Proceeds from disposal of property and equipment	62			—			62			4			i	66
Acquisitions, net of cash acquired	(14		)	—			(14		)	—				(14		)
Equity method investment	(213		)	—			(213		)	—				(213		)
Repayments of loans with Hertz Global Holdings, Inc.	(39		)	—			(39		)	—				(39		)
Proceeds from loans with Hertz Global Holdings, Inc.	40			—			40			—				40
Other investing activities	(3		)	(1		)	(4		)	1			r	(3		)
Net cash provided by (used in) investing activities	(4,035		)	1			(4,034		)	(12		)		(4,046		)



QUARTERLY CONSOLIDATED STATEMENT OF CASH FLOWS (Continued)
(In millions)

	For the Nine Months Ended September 30, 2013
	As Previously Reported			Revision Adjustment			As Revised			Restatement Adjustment			Ref	As Restated
Cash flows from financing activities:
Proceeds from issuance of long-term debt	1,208			—			1,208			—				1,208
Repayments of long-term debt	(371		)	—			(371		)	—				(371		)
Short-term borrowings:
Proceeds	472			—			472			—				472
Payments	(711		)	—			(711		)	—				(711		)
Proceeds under the revolving lines of credit	5,250			—			5,250			—				5,250
Payments under the revolving lines of credit	(4,167		)	—			(4,167		)	—				(4,167		)
Payment of financing costs	(27		)	—			(27		)	—				(27		)
Dividend paid to Hertz Global Holdings, Inc.	(480		)	—			(480		)	—				(480		)
Other	5			—			5			—				5
Net cash provided by financing activities	1,179			—			1,179			—				1,179
Effect of foreign exchange rate changes on cash and cash equivalents	(2		)	—			(2		)	—				(2		)
Net change in cash and cash equivalents during the period	15			(14		)	1			(37		)		(36		)
Cash and cash equivalents at beginning of period	533			13			546			(5		)	k	541
Cash and cash equivalents at end of period	$	548		$	(1	)	$	547		$	(42	)	k	$	505