Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2014

Company's Cash Equivalents and Investments

The following table summarizes the ending balances of the Company's cash equivalents and investments.



	December 31, 2014								December 31, 2013
(in millions)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Money market funds	$	146	$	—	$	—	$	146	$	449	$	—	$	—	$	449
Equity and other securities	—		96		—		96		—		117		—		117
Marketable securities	—		—		—		—		—		—		151		151
Total	$	146	$	96	$	—	$	242	$	449	$	117	$	151	$	717

Schedule of Changes in Fair Value Measurent Using Level 3 Inputs

The following table summarizes the changes in fair value of CAR, Inc. convertible debt securities prior to conversion in April 2014, using Level 3 inputs (binomial valuation model) for the years ended December 31, 2014 and 2013, respectively:



(in millions)	December 31, 2014			December 31, 2013
Balance at the beginning of period	$	151		$	—
Reclassification of net unrealized gain on securities to prepaid expenses and other assets	(7		)	—
Unrealized gains (losses) related to investments	(14		)	21
Purchases	—			130
Settlements	(130		)	—
Balance at the end of period	$	—		$	151

Components of Debt

The Company's debt consists of the following (in millions):



Facility	Average Interest Rate at December 31, 2014⁽¹⁾	Fixed or Floating Interest Rate	Maturity	December 31, 2014		December 31, 2013
Corporate Debt
Senior Term Facility	3.68%	Floating	3/2018	$	2,083	$	2,104
Senior ABL Facility	2.83%	Floating	3/2016 - 3/2017	344		289
Senior Notes⁽²⁾	6.58%	Fixed	4/2018–10/2022	3,900		3,900
Promissory Notes	7.00%	Fixed	1/2028	27		49
Other Corporate Debt	3.86%	Floating	Various	74		77
Unamortized Net Premium				3		3
Total Corporate Debt				6,431		6,422
Fleet Debt
HVF U.S. ABS Program
HVF U.S. Fleet Variable Funding Notes:
HVF Series 2009-1⁽³⁾	N/A	N/A	N/A	—		60
				—		60
HVF U.S. Fleet Medium Term Notes
HVF Series 2009-2⁽³⁾	5.38%	Fixed	3/2013–3/2015	404		808
HVF Series 2010-1⁽³⁾	4.23%	Fixed	2/2014–2/2018	490		577
HVF Series 2011-1⁽³⁾	3.04%	Fixed	3/2015–3/2017	414		598
HVF Series 2013-1⁽³⁾	1.68%	Fixed	8/2016–8/2018	950		950
				2,258		2,933



Facility	Average Interest Rate at December 31, 2014⁽¹⁾	Fixed or Floating Interest Rate	Maturity	December 31, 2014			December 31, 2013
RCFC U.S. ABS Program
RCFC Series 2011-1 Notes⁽³⁾⁽⁴⁾	2.81%	Fixed	2/2015	167			500
RCFC Series 2011-2 Notes⁽³⁾⁽⁴⁾	3.21%	Fixed	2/2015	266			400
				433			900
HVF II U.S. ABS Program
HVF II U.S. Fleet Variable Funding Notes:
HVF II Series 2013-A⁽³⁾	1.09%	Floating	10/2016	1,999			2,380
HVF II Series 2013-B⁽³⁾	1.09%	Floating	10/2016	976			585
HVF II Series 2014-A⁽³⁾	1.39%	Floating	10/2016	869			—
				3,844			2,965
Donlen ABS Program
HFLF Variable Funding Notes
HFLF Series 2013-1 Notes⁽³⁾	N/A	N/A	N/A	—			280
HFLF Series 2013-2 Notes⁽³⁾	1.01%	Floating	9/2016	247			206
				247			486
HFLF Medium Term Notes
HFLF Series 2013-3 Notes⁽³⁾	0.78%	Floating	9/2016–11/2016	500			500
HFLF Series 2014-1 Notes⁽³⁾	0.67%	Floating	12/2016–3/2017	400			—
				900			500
Other Fleet Debt
U.S. Fleet Financing Facility	2.92%	Floating	3/2017	164			153
European Revolving Credit Facility	2.61%	Floating	10/2017	304			303
European Fleet Notes	4.375%	Fixed	1/2019	517			584
European Securitization⁽³⁾	1.98%	Floating	10/2016	270			281
Hertz-Sponsored Canadian Securitization⁽³⁾	2.18%	Floating	10/2016	105			89
Dollar Thrifty-Sponsored Canadian Securitization⁽³⁾⁽⁴⁾	2.19%	Floating	10/2016	40			38
Australian Securitization⁽³⁾	4.28%	Floating	12/2016	112			111
Brazilian Fleet Financing Facility	15.50%	Floating	10/2015	11			12
Capitalized Leases	3.82%	Floating	2/2015 - 10/2017	364			385
Unamortized Premium (Discount)				(7		)	6
				1,880			1,962
Total Fleet Debt				9,562			9,806
Total Debt				$	15,993		$	16,228

N/A - Not Applicable


(1)	As applicable, reference is to the December 31, 2014 weighted average interest rate (weighted by principal balance).


(2)	References to the Company's "Senior Notes" include the series of Hertz's unsecured senior notes set forth in the table below. As of December 31, 2014 and December 31, 2013, the outstanding principal amount for each such series of the Senior Notes is also specified below.



(In millions)	Outstanding Principal
Senior Notes	December 31, 2014		December 31, 2013
4.25% Senior Notes due April 2018	$	250	$	250
7.50% Senior Notes due October 2018	700		700
6.75% Senior Notes due April 2019	1,250		1,250
5.875% Senior Notes due October 2020	700		700
7.375% Senior Notes due January 2021	500		500
6.25% Senior Notes due October 2022	500		500
	$	3,900	$	3,900

(3)

Maturity reference is to the "expected final maturity date" as opposed to the subsequent "legal maturity date." The expected final maturity date is the date by which Hertz and investors in the relevant indebtedness expect the relevant indebtedness to be repaid, which in the case of the HFLF Medium Term Notes was based upon various assumptions made at the time of the pricing of such notes. The legal final maturity date is the date on which the relevant indebtedness is legally due and payable.


(4)	RCFC U.S. ABS Program and the Dollar Thrifty-Sponsored Canadian Securitization represent fleet debt assumed in connection with the Dollar Thrifty acquisition on November 19, 2012.

The fair value of the Company's debt is estimated based on quoted market rates as well as borrowing rates currently available for loans with similar terms and average maturities (Level 2 inputs).



	As of December 31, 2014					As of December 31, 2013
(in millions)		Nominal Unpaid Principal Balance		Aggregate Fair Value			Nominal Unpaid Principal Balance		Aggregate Fair Value
Corporate Debt		$	6,428	$	6,468		$	6,419	$	6,665
Fleet Debt		9,569		9,595			9,800		9,883
Total		$	15,997	$	16,063		$	16,219	$	16,548

Assets and Liabilities Measure on a Non-Recurring Basis

Assets and liabilities measured at fair value during the year ended December 31, 2014 are as follows:



(In millions)	Balance		Level 1		Level 2		Level 3		Total Loss Adjustments
Long-lived assets held for sale	$	67	$	—	$	—	$	67	$	24