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Restatement (Tables)
 12 Months Ended
Dec. 31, 2014
Accounting Changes and Error Corrections [Abstract]  
Schedule of Error Corrections and Prior Period Adjustments
The change in accounting principle was applied retroactively to December 2005, a portion of which is a correction of an error as follows:
 
Year Ended December 31,
(In millions)
2005 to 2011
 
2012
 
2013
Correction of an error
$
3

 
$
—

 
$
—

Change in accounting principle
(6
)
 
5

 
12

Total increase (decrease) in pre-tax income
$
(3
)
 
$
5

 
$
12


CONSOLIDATED BALANCE SHEET
(In millions, except par value and share data)

 
 
 
December 31, 2013
 
As Previously Reported
 
Restatement Adjustment
Ref
 
As Restated
ASSETS
 
 
 
 
 
 
Cash and cash equivalents
$
423

 
$
(12
)
k
 
$
411

Restricted cash and cash equivalents
860

 
1

k
 
861

Receivables, net of allowance of $62
1,513

 
(116
)
a, b, c, d, e, g, j, m, r
 
1,397

Due from Hertz Global Holdings, Inc.
93

 
—

 
 
93

Inventories, net
92

 
(5
)
p, r
 
87

Prepaid expenses and other assets
717

 
(2
)
n, r
 
715

Revenue earning equipment:
 
 
 
 
 
 
Cars
14,457

 
(1
)
j, p
 
14,456

Less accumulated depreciation - cars
(2,680
)
 
(1
)
j, r
 
(2,681
)
Other equipment
3,512

 
23

h, p
 
3,535

Less accumulated depreciation - other equipment
(1,096
)
 
(23
)
h
 
(1,119
)
Revenue earning equipment, net
14,193

 
(2
)
 
 
14,191

Property and equipment:
 
 
 
 
 
 
Land, buildings and leasehold improvements
1,362

 
(91
)
i, l, r, q
 
1,271

Service equipment and other
1,257

 
(279
)
i, l
 
978

Less accumulated depreciation
(1,105
)
 
141

i, l, r
 
(964
)
Property and equipment, net
1,514

 
(229
)
 
 
1,285

Other intangible assets, net
3,928

 
196

l, r
 
4,124

Goodwill
1,348

 
4

q
 
1,352

Total assets
$
24,681

 
$
(165
)
 
 
$
24,516

LIABILITIES AND EQUITY
 
 
 
 
 
 
Accounts payable
$
968

 
$
53

k, p
 
$
1,021

Accrued liabilities
1,105

 
67

f, g, j, m, o, q, t
 
1,172

Accrued taxes, net
203

 
(58
)
r, s, u
 
145

Debt
16,228

 
—

 
 
16,228

Public liability and property damage
348

 
3

r
 
351

Deferred taxes on income, net
2,945

 
(26
)
s, u
 
2,919

Total liabilities
21,797

 
39

 
 
21,836

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
3,552

 
—

 
 
3,552

Accumulated deficit
(675
)
 
(203
)
a-t
 
(878
)
Accumulated other comprehensive income
7

 
(1
)
q, t
 
6

Total equity
2,884

 
(204
)
 
 
2,680

Total liabilities and equity
$
24,681

 
$
(165
)
 
 
$
24,516

CONSOLIDATED BALANCE SHEET
(In millions, except par value and share data)

 
 
 
December 31, 2012
 
As Previously Reported
 
Restatement Adjustment
Ref
 
As Restated
ASSETS
 
 
 
 
 
 
Cash and cash equivalents
$
546

 
$
(5
)
k
 
$
541

Restricted cash and cash equivalents
552

 
(6
)
k
 
546

Receivables, net of allowance of $53
1,880

 
(93
)
a, b, c, d, e, g, j, r
 
1,787

Due from Hertz Global Holdings, Inc.
13

 
—

 
 
13

Inventories, net
106

 
(4
)
r
 
102

Prepaid expenses and other assets
479

 
—

r
 
479

Revenue earning equipment:
 
 
 
 
 
 
Cars
12,549

 
(7
)
f, r
 
12,542

Less accumulated depreciation - cars
(1,850
)
 
(5
)
f
 
(1,855
)
Other equipment
3,240

 
17

h, r
 
3,257

Less accumulated depreciation - other equipment
(1,042
)
 
(10
)
h
 
(1,052
)
Revenue earning equipment, net
12,897

 
(5
)
 
 
12,892

Property and equipment:
 
 
 
 
 
 
Land, buildings and leasehold improvements
1,289

 
(65
)
i, r, q
 
1,224

Service equipment and other
1,261

 
(202
)
i, l, r
 
1,059

Less accumulated depreciation
(1,114
)
 
90

i, l, r
 
(1,024
)
Property and equipment, net
1,436

 
(177
)
 
 
1,259

Other intangible assets, net
4,030

 
150

l, r
 
4,180

Goodwill
1,329

 
4

q
 
1,333

Total assets
$
23,268

 
$
(136
)
 
 
$
23,132

LIABILITIES AND EQUITY
 
 
 
 
 
 
Accounts payable
$
1,003

 
$
33

k, p, r
 
$
1,036

Accrued liabilities
1,162

 
50

j, o, q, r
 
1,212

Accrued taxes, net
193

 
(46
)
r, u
 
147

Debt
15,015

 
—

 
 
15,015

Public liability and property damage
332

 
1

r
 
333

Deferred taxes on income, net
2,667

 
(19
)
s, u
 
2,648

Total liabilities
20,372

 
19

 
 
20,391

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 outstanding
—

 
—

 
 
—

Additional paid-in capital
3,510

 
—

 
 
3,510

Accumulated deficit
(587
)
 
(159
)
a-t
 
(746
)
Accumulated other comprehensive loss
(27
)
 
4

q, t
 
(23
)
Total equity
2,896

 
(155
)
 
 
2,741

Total liabilities and equity
$
23,268

 
$
(136
)
 
 
$
23,132

CONSOLIDATED STATEMENT OF OPERATIONS
(In millions)
 
 
 
For the Year Ended December 31, 2013
 
As Previously Reported
 
Restatement Adjustment
Ref
 
As Restated
Revenues:
 
 
 
 
 
 
Worldwide car rental
$
8,707

 
$
2

a, b, g, m, r
 
$
8,709

Worldwide equipment rental
1,538

 
1

c, r
 
1,539

All other operations
527

 
—

 
 
527

Total revenues
10,772

 
3

 
 
10,775

Expenses:
 
 
 
 
 
 
Direct operating
5,752

 
25

d, e, f, j, m, n, p, q, r, t
 
5,777

Depreciation of revenue earning equipment and lease charges, net
2,526

 
7

r
 
2,533

Selling, general and administrative
1,022

 
31

a, b, c, d, e, i, j, o, p, q, r
 
1,053

Interest expense, net
666

 
3

r
 
669

Other expense, net
67

 
(3
)
r
 
64

Total expenses
10,033

 
63

 
 
10,096

Income (loss) before income taxes
739

 
(60
)
 
 
679

(Provision) benefit for taxes on income
(345
)
 
16

s
 
(329
)
Net income (loss)
$
394

 
$
(44
)
 
 
$
350

CONSOLIDATED STATEMENT OF OPERATIONS
(In millions)
 
 
 
For the Year Ended December 31, 2012
 
As Previously Reported
 
Restatement Adjustment
Ref
 
As Restated
Revenues:
 
 
 
 
 
 
Worldwide car rental
$
7,162

 
$
(9
)
a, b, g, m, r
 
$
7,153

Worldwide equipment rental
1,385

 
(3
)
c, r
 
1,382

All other operations
478

 
—

 
 
478

Total revenues
9,025

 
(12
)
 
 
9,013

Expenses:
 
 
 
 
 
 
Direct operating
4,806

 
55

d, e, f, j, m, n, o, p, q, r, t
 
4,861

Depreciation of revenue earning equipment and lease charges, net
2,129

 
(1
)
r
 
2,128

Selling, general and administrative
968

 
10

a, b, c, d, e, i, j, o, p, q, r
 
978

Interest expense, net
594

 
2

r
 
596

Other expense, net
35

 
(2
)
r
 
33

Total expenses
8,532

 
64

 
 
8,596

Income (loss) before income taxes
493

 
(76
)
 
 
417

(Provision) benefit for taxes on income
(221
)
 
21

s
 
(200
)
Net income (loss)
$
272

 
$
(55
)
 
 
$
217

CONSOLIDATED STATEMENT OF CASH FLOWS
(In millions)
 
 
 
For the Year Ended December 31, 2013
 
As Previously Reported
 
Restatement Adjustment
Ref
 
As Restated
Cash flows from operating activities:
 
 
 
 
 
 
Net income (loss)
$
394

 
$
(44
)
a, b, c, d, e, f, g, i, j, m ,n, o, p, q, r, s
 
$
350

Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
 
 
 
 
 
 
Depreciation of revenue earning equipment, net
2,445

 
7

f, r, j
 
2,452

Depreciation and amortization, non-fleet assets
327

 
12

i, r
 
339

Amortization and write-off of deferred financing costs
54

 
—

 
 
54

Amortization and write-off of debt discount
(5
)
 
(1
)
 
 
(6
)
Stock-based compensation charges
35

 
—

 
 
35

Loss on disposal of business
4

 
—

 
 
4

Loss on extinguishment of debt
7

 
—

 
 
7

Provision for receivables allowance
71

 
—

a, b, c, d, e, g, j, r
 
71

Deferred taxes on income
269

 
(14
)
r, s
 
255

Impairment charges and asset write-downs
40

 
—

 
 
40

Other
(2
)
 
(4
)
r
 
(6
)
Changes in assets and liabilities, net of effects of acquisition:
 
 
 
 
 
 
Receivables
(60
)
 
7

a, b, c, d, e, g, j, r
 
(53
)
Inventories, prepaid expenses and other assets
(34
)
 
(1
)
n, r
 
(35
)
Accounts payable
23

 
31

k, p, r
 
54

Accrued liabilities
23

 
5

o, q, r
 
28

Accrued taxes
24

 
3

s, j
 
27

Public liability and property damage
(4
)
 
3

r
 
(1
)
Net cash provided by (used in) operating activities
3,611

 
4

 
 
3,615

Cash flows from investing activities:
 
 
 
 
 
 
Net change in restricted cash and cash equivalents
(308
)
 
(7
)
k
 
(315
)
Revenue earning equipment expenditures
(10,298
)
 
9

h
 
(10,289
)
Proceeds from disposal of revenue earning equipment
7,264

 
(8
)
h, f, r
 
7,256

Capital asset expenditures, non-fleet
(315
)
 
(12
)
i, r, p
 
(327
)
Proceeds from disposal of property and equipment
73

 
8

i
 
81

Acquisitions, net of cash acquired
(41
)
 
—


 
(41
)
Equity method investment
(213
)
 
—

 
 
(213
)
Repayments of loans with Hertz Global Holdings, Inc.
(129
)
 
—

 
 
(129
)
Proceeds from loans with Hertz Global Holdings, Inc.
49

 
—

 
 
49

Other investing activities
(1
)
 
(1
)
r
 
(2
)
Net cash provided by (used in) investing activities
(3,919
)
 
(11
)
 
 
(3,930
)
CONSOLIDATED STATEMENT OF CASH FLOWS (Continued)
(In millions)
 
 
 
For the Year Ended December 31, 2013
 
As Previously Reported
 
Restatement Adjustment
Ref
 
As Restated
Cash flows from financing activities:
 
 
 
 
 
 
Proceeds from issuance of long-term debt
2,275

 
—


 
2,275

Repayments of long-term debt
(1,045
)
 
—

 
 
(1,045
)
Short-term borrowings:
 
 
 
 
 
 
Proceeds
596

 
—

 
 
596

Payments
(1,018
)
 
—

 
 
(1,018
)
Proceeds under the revolving lines of credit
9,012

 
—


 
9,012

Payments under the revolving lines of credit
(9,104
)
 
—

 
 
(9,104
)
Purchase of noncontrolling interest
—

 
—

 
 
—

Payment of financing costs
(54
)
 
—

 
 
(54
)
Dividend paid to Hertz Global Holdings, Inc.
(482
)
 
—

 
 
(482
)
Other
5

 
—

 
 
5

Net cash provided by financing activities
185

 
—

 
 
185

Effect of foreign exchange rate changes on cash and cash equivalents
—

 
—

 
 
—

Net change in cash and cash equivalents during the period
(123
)
 
(7
)
 
 
(130
)
Cash and cash equivalents at beginning of period
546

 
(5
)
k
 
541

Cash and cash equivalents at end of period
$
423

 
$
(12
)
k
 
$
411

CONSOLIDATED STATEMENT OF CASH FLOWS
(In millions)
 
 
 
For the Year Ended December 31, 2012
 
As Previously Reported
 
Restatement Adjustment
Ref
 
As Restated
Cash flows from operating activities:
 
 
 
 
 
 
Net income (loss)
$
272

 
$
(55
)
a, b, c, d, e, f, g, i, m, o, q, r, s
 
$
217

Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
 
 
 
 
 
 
Depreciation of revenue earning equipment, net
2,049

 
(1
)
f, j, r
 
2,048

Depreciation and amortization, non-fleet assets
257

 
4

i, r
 
261

Amortization and write-off of deferred financing costs
52

 
—

 
 
52

Amortization and write-off of debt discount
4

 
—

 
 
4

Stock-based compensation charges
30

 
—

 
 
30

Loss on disposal of business
46

 
—

 
 
46

Provision for receivables allowance
52

 
6

a, b, c, d, e, g, j, r
 
58

Deferred taxes on income
133

 
(23
)
r, s
 
110

Other
(10
)
 
1

r
 
(9
)
Changes in assets and liabilities, net of effects of acquisition:
 
 
 
 
 
 
Receivables
(163
)
 
38

a, b, c, d, e, g, j, r
 
(125
)
Inventories, prepaid expenses and other assets
(22
)
 
4

n, r
 
(18
)
Accounts payable
34

 
18

k, r
 
52

Accrued liabilities
(30
)
 
10

o, r
 
(20
)
Accrued taxes
40

 
1

r, s
 
41

Public liability and property damage
(4
)
 
—

 
 
(4
)
Net cash provided by (used in) operating activities
2,740

 
3

 
 
2,743

Cash flows from investing activities:
 
 
 
 
 
 
Net change in restricted cash and cash equivalents
(241
)
 
4

k
 
(237
)
Revenue earning equipment expenditures
(9,613
)
 
2

r
 
(9,611
)
Proceeds from disposal of revenue earning equipment
7,125

 
(2
)
h, r
 
7,123

Capital asset expenditures, non-fleet
(297
)
 
(1
)
i, r
 
(298
)
Proceeds from disposal of property and equipment
122

 
3

i
 
125

Acquisitions, net of cash acquired
(1,905
)
 
—

 
 
(1,905
)
Proceeds from disposal of business
85

 
(1
)
 
 
84

Repayments of loans with Hertz Global Holdings, Inc.
(25
)
 
—

 
 
(25
)
Proceeds from loans with Hertz Global Holdings, Inc.
12

 
—

 
 
12

Other investing activities
(3
)
 
1

 
 
(2
)
Net cash provided by (used in) investing activities
(4,740
)
 
6

 
 
(4,734
)
CONSOLIDATED STATEMENT OF CASH FLOWS (Continued)
(In millions)
 
 
 
 
 
 
 
 
For the Year Ended December 31, 2012
 
As Previously Reported
 
Restatement Adjustment
Ref
 
As Restated
Cash flows from financing activities:
 
 
 
 
 
 
Proceeds from issuance of long-term debt
2,237

 
—

 
 
2,237

Repayments of long-term debt
(952
)
 
—

 
 
(952
)
Short-term borrowings:
 
 
 
 
 
 
Proceeds
438

 
—

 
 
438

Payments
(1,280
)
 
—

 
 
(1,280
)
Proceeds under the revolving lines of credit
6,464

 
—

 
 
6,464

Payments under the revolving lines of credit
(5,190
)
 
—

 
 
(5,190
)
Purchase of noncontrolling interest
(38
)
 
—

 
 
(38
)
Payment of financing costs
(49
)
 
—

 
 
(49
)
Dividend paid to Hertz Global Holdings, Inc.
(25
)
 
—

 
 
(25
)
Other
4

 
(1
)
 
 
3

Net cash provided by financing activities
1,609

 
(1
)
 
 
1,608

Effect of foreign exchange rate changes on cash and cash equivalents
6

 
—

 
 
6

Net change in cash and cash equivalents during the period
(385
)
 
8

 
 
(377
)
Cash and cash equivalents at beginning of period
931

 
(13
)
k
 
918

Cash and cash equivalents at end of period
$
546

 
$
(5
)
k
 
$
541