Guarantor and Non-Guarantor Condensed Consolidating Financial Statements

The following condensed consolidating financial information presents the Condensed Consolidating Balance Sheets as of June 30, 2015 and December 31, 2014, the Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) for the three and six months ended June 30, 2015 and 2014 and the Statements of Cash Flows for the six months ended June 30, 2015 and 2014 of (a) The Hertz Corporation, ("Parent”); (b) the Parent's subsidiaries that guarantee the Parent's indebtedness ("Guarantor Subsidiaries"); (c) the Parent's subsidiaries that do not guarantee the Parent's indebtedness ("Non-Guarantor Subsidiaries"); (d) elimination entries necessary to consolidate the Parent with the Guarantor Subsidiaries and Non-Guarantor Subsidiaries ("Eliminations"); and of (e) the Company on a consolidated basis.

Investments in subsidiaries are accounted for using the equity method for purposes of the consolidating presentation. The principal elimination entries relate to investments in subsidiaries and intercompany balances and transactions. The Guarantor Subsidiaries are 100% owned by the Parent and all guarantees are full and unconditional and joint and several. Additionally, substantially all of the assets of the Guarantor Subsidiaries are pledged under the Senior Credit Facilities, and consequently will not be available to satisfy the claims of the Company's general creditors. In lieu of providing separate unaudited financial statements for the Guarantor Subsidiaries, we have included the accompanying condensed consolidating financial statements based on Rule 3-10 of the SEC's Regulation S-X. Management does not believe that separate financial statements of the Guarantor Subsidiaries are material to our investors; therefore, separate financial statements and other disclosures concerning the Guarantor Subsidiaries are not presented.

CONDENSED CONSOLIDATING BALANCE SHEET

June 30, 2015

(In millions)



	Parent (The Hertz Corporation)		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations			The Hertz Corporation & Subsidiaries
ASSETS
Cash and cash equivalents	$	141	$	18	$	378	$	—		$	537
Restricted cash and cash equivalents	142		14		265		—			421
Receivables, less allowance for doubtful accounts	274		398		718		—			1,390
Due from affiliates	3,504		1,635		5,331		(10,368		)	102
Inventories, net	23		25		27		—			75
Prepaid expenses and other assets	4,149		901		54		(4,166		)	938
Revenue earning equipment, net	471		2,178		13,347		—			15,996
Property and equipment, net	800		307		200		—			1,307
Investment in subsidiaries, net	6,934		1,624		—		(8,558		)	—
Other intangible assets, net	154		3,172		619		—			3,945
Goodwill	104		1,034		222		—			1,360
Total assets	$	16,696	$	11,306	$	21,161	$	(23,092	)	$	26,071
LIABILITIES AND EQUITY
Intercompany payables	$	6,756	$	965	$	2,647	$	(10,368	)	$	—
Accounts payable	101		296		1,034		—			1,431
Accrued liabilities	590		229		310		—			1,129
Accrued taxes	65		36		2,200		(2,199		)	102
Debt	6,616		69		10,997		—			17,682
Public liability and property damage	145		56		183		—			384
Deferred taxes on income			2,654		2,233		(1,967		)	2,920
Total liabilities	14,273		4,305		19,604		(14,534		)	23,648
Equity:
The Hertz Corporation and Subsidiaries stockholder's equity	2,423		7,001		1,557		(8,558		)	2,423
Total liabilities and equity	$	16,696	$	11,306	$	21,161	$	(23,092	)	$	26,071

CONDENSED CONSOLIDATING BALANCE SHEET

December 31, 2014

(In millions)



	Parent (The Hertz Corporation)		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations			The Hertz Corporation & Subsidiaries
ASSETS
Cash and cash equivalents	$	2	$	14	$	474	$	—		$	490
Restricted cash and cash equivalents	84		26		461		—			571
Receivables, less allowance for doubtful accounts	272		419		906		—			1,597
Due from affiliates	2,957		1,528		4,395		(8,785		)	95
Inventories, net	20		25		22		—			67
Prepaid expenses and other assets	3,900		831		87		(3,901		)	917
Revenue earning equipment, net	306		1,988		11,359		—			13,653
Property and equipment, net	730		308		284		—			1,322
Investment in subsidiaries, net	6,897		1,513		—		(8,410		)	—
Other intangible assets, net	179		3,213		617		—			4,009
Goodwill	104		1,033		222		—			1,359
Total assets	$	15,451	$	10,898	$	18,827	$	(21,096	)	$	24,080
LIABILITIES AND EQUITY
Intercompany payables	$	5,702	$	1,005	$	2,078	$	(8,785	)	$	—
Accounts payable	65		212		731		—			1,008
Accrued liabilities	599		231		318		—			1,148
Accrued taxes	62		31		2,252		(2,211		)	134
Debt	6,393		74		9,526		—			15,993
Public liability and property damage	135		57		193		—			385
Deferred taxes on income	—		2,541		2,066		(1,690		)	2,917
Total liabilities	12,956		4,151		17,164		(12,686		)	21,585
Equity:
The Hertz Corporation and Subsidiaries stockholder's equity	2,495		6,747		1,663		(8,410		)	2,495
Total liabilities and equity	$	15,451	$	10,898	$	18,827	$	(21,096	)	$	24,080

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

For the Three Months Ended June 30, 2015

(In millions)



	Parent (The Hertz Corporation)			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			The Hertz Corporation & Subsidiaries
Total revenues	$	1,181		$	702		$	1,391		$	(582	)	$	2,692
Expenses:
Direct operating	720			384			402			(1		)	1,505
Depreciation of revenue earning equipment and lease charges	452			203			622			(581		)	696
Selling, general and administrative	155			58			83			—			296
Interest expense, net	86			6			63			—			155
Other (income) expense, net	(3		)	(2		)	(5		)	—			(10		)
Total expenses	1,410			649			1,165			(582		)	2,642
Income (loss) before income taxes	(229		)	53			226			—			50
(Provision) benefit for taxes on income	76			(17		)	(86		)	—			(27		)
Equity in earnings (losses) of subsidiaries, net of tax	176			68			—			(244		)	—
Net income (loss)	23			104			140			(244		)	23
Other comprehensive income (loss), net of tax	11			—			7			(7		)	11
Comprehensive income (loss)	$	34		$	104		$	147		$	(251	)	$	34

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

For the Three Months Ended June 30, 2014

(In millions)



	Parent (The Hertz Corporation)			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			The Hertz Corporation & Subsidiaries
Total revenues	$	1,212		$	700		$	1,570		$	(652	)	$	2,830
Expenses:
Direct operating	739			384			472			(1		)	1,594
Depreciation of revenue earning equipment and lease charges	538			174			647			(651		)	708
Selling, general and administrative	132			49			84			—			265
Interest expense, net	88			5			69			—			162
Other (income) expense, net	(21		)	(1		)	—			—			(22		)
Total expenses	1,476			611			1,272			(652		)	2,707
Income (loss) before income taxes	(264		)	89			298			—			123
(Provision) benefit for taxes on income (loss)	94			(33		)	(111		)	—			(50		)
Equity in earnings (losses) of subsidiaries, net of tax	243			34			—			(277		)	—
Net income (loss)	73			90			187			(277		)	73
Other comprehensive income (loss), net of tax	12			(1		)	14			(13		)	12
Comprehensive income (loss)	$	85		$	89		$	201		$	(290	)	$	85

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

For the Six Months Ended June 30, 2015

(In millions)



	Parent (The Hertz Corporation)			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			The Hertz Corporation & Subsidiaries
Total revenues	$	2,296		$	1,359		$	2,668		$	(1,178	)	$	5,145
Expenses:
Direct operating	1,414			762			739			(2		)	2,913
Depreciation of revenue earning equipment and lease charges	907			387			1,285			(1,176		)	1,403
Selling, general and administrative	267			120			173			—			560
Interest expense, net	176			11			121			—			308
Other (income) expense, net	(2		)	(1		)	(1		)	—			(4		)
Total expenses	2,762			1,279			2,317			(1,178		)	5,180
Income (loss) before income taxes	(466		)	80			351			—			(35		)
(Provision) benefit for taxes on income	44			(15		)	(40		)	—			(11		)
Equity in earnings (losses) of subsidiaries, net of tax	376			114			—			(490		)	—
Net income (loss)	(46		)	179			311			(490		)	(46		)
Other comprehensive income (loss), net of tax	(35		)	(4		)	(39		)	43			(35		)
Comprehensive income (loss)	$	(81	)	$	175		$	272		$	(447	)	$	(81	)

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

For the Six Months Ended June 30, 2014

(In millions)



	Parent (The Hertz Corporation)			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			The Hertz Corporation & Subsidiaries
Total revenues	$	2,334		$	1,356		$	3,097		$	(1,421	)	$	5,366
Expenses:
Direct operating	1,420			742			876			(1		)	3,037
Depreciation of revenue earning equipment and lease charges	1,201			343			1,310			(1,420		)	1,434
Selling, general and administrative	266			98			177			—			541
Interest expense, net	172			11			132			—			315
Other (income) expense, net	(28		)	(1		)	4			—			(25		)
Total expenses	3,031			1,193			2,499			(1,421		)	5,302
Income (loss) before income taxes	(697		)	163			598			—			64
(Provision) benefit for taxes on income	254			(60		)	(252		)	—			(58		)
Equity in earnings (losses) of subsidiaries, net of tax	449			53			—			(502		)	—
Net income (loss)	6			156			346			(502		)	6
Other comprehensive income (loss), net of tax	(6		)	(3		)	(3		)	6			(6		)
Comprehensive income (loss)	$	—		$	153		$	343		$	(496	)	$	—

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the Six Months Ended June 30, 2015

(In millions)



	Parent (The Hertz Corporation)			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			The Hertz Corporation & Subsidiaries
Net cash provided by (used in) operating activities	$	(810	)	$	224		$	2,718		$	(679	)	$	1,453
Cash flows from investing activities:
Net change in restricted cash and cash equivalents	(60		)	12			192			—			144
Revenue earning equipment expenditures	(298		)	(357		)	(7,336		)	—			(7,991		)
Proceeds from disposal of revenue earning equipment	160			114			4,635			—			4,909
Capital asset expenditures, non-fleet	(87		)	(23		)	(60		)	—			(170		)
Proceeds from disposal of property and equipment	27			5			15			—			47
Capital contributions to subsidiaries	(1,544		)	—			—			1,544			—
Return of capital from subsidiaries	2,043			37			—			(2,080		)	—
Loan to Parent / Guarantor from Non-Guarantor	—			—			(506		)	506			—
Acquisitions, net of cash acquired	(17		)	(3		)	(75		)	—			(95		)
Advances to Hertz Global Holdings, Inc.	(6		)	—			—			—			(6		)
Net cash provided by (used in) investing activities	218			(215		)	(3,135		)	(30		)	(3,162		)
Cash flows from financing activities:
Proceeds from issuance of long-term debt	—			—			1,069			—			1,069
Repayment of long-term debt	(11		)	—			(1,021		)	—			(1,032		)
Short-term borrowings:
Proceeds	—			—			383			—			383
Payments	—			—			(258		)	—			(258		)
Proceeds under the revolving lines of credit	1,206			—			4,101			—			5,307
Payments under the revolving lines of credit	(970		)	(4		)	(2,714		)	—			(3,688		)
Capital contributions received from parent	—			—			1,544			(1,544		)	—
Loan to Parent / Guarantor from Non-Guarantor	506			—			—			(506		)	—
Payment of dividends and return of capital	—			—			(2,759		)	2,759			—
Payment of financing costs	—			(1		)	(7		)	—			(8		)
Net cash provided by (used in) financing activities	731			(5		)	338			709			1,773
Effect of foreign exchange rate changes on cash and cash equivalents	—			—			(17		)	—			(17		)
Net change in cash and cash equivalents during the period	139			4			(96		)	—			47
Cash and cash equivalents at beginning of period	2			14			474			—			490
Cash and cash equivalents at end of period	$	141		$	18		$	378		$	—		$	537

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the Six Months Ended June 30, 2014

(In millions)



	Parent (The Hertz Corporation)			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			The Hertz Corporation & Subsidiaries
Net cash provided by (used in) operating activities	$	(1,274	)	$	218		$	2,578		$	(116	)	$	1,406
Cash flows from investing activities:
Net change in restricted cash and cash equivalents	(7		)	54			96			—			143
Revenue earning equipment expenditures	(89		)	(309		)	(5,598		)	—			(5,996		)
Proceeds from disposal of revenue earning equipment	62			149			3,506			—			3,717
Capital assets expenditures, non-fleet	(68		)	(15		)	(68		)	—			(151		)
Proceeds from disposal of property and equipment	17			5			23			—			45
Capital contributions to subsidiaries	(415		)	(80		)	—			495			—
Return of capital from subsidiaries	804			—			—			(804		)	—
Acquisitions, net of cash acquired	—			(2		)	(4		)	—			(6		)
Loan to Parent / Guarantor from Non-Guarantor	—			—			(230		)	230			—
Advances to Hertz Global Holdings, Inc.	(27		)	—			—			—			(27		)
Repayments from Hertz Global Holdings, Inc.	25			—			—			—			25
Net cash provided by (used in) investing activities	302			(198		)	(2,275		)	(79		)	(2,250		)
Cash flows from financing activities:
Proceeds from issuance of long-term debt	—			—			414			—			414
Payment of long-term debt	(10		)	—			(87		)	—			(97		)
Short-term borrowings:
Proceeds	—			—			269			—			269
Payments	—			—			(369		)	—			(369		)
Proceeds under the revolving lines of credit	1,715			—			1,064			—			2,779
Payments under the revolving lines of credit	(895		)	(5		)	(1,117		)	—			(2,017		)
Capital contributions received from parent	—			—			495			(495		)	—
Loan to Parent / Guarantor from Non-Guarantor	230			—			—			(230		)	—
Payment of dividends and return of capital	—			—			(920		)	920			—
Payment of financing costs	—			(3		)	(3		)	—			(6		)
Other	2			—			—			—			2
Net cash provided by (used in) financing activities	1,042			(8		)	(254		)	195			975
Effect of foreign exchange rate changes on cash and cash equivalents	—			—			(2		)	—			(2		)
Net change in cash and cash equivalents during the period	70			12			47			—			129
Cash and cash equivalents at beginning of period	62			6			343			—			411
Cash and cash equivalents at end of period	$	132		$	18		$	390		$	—		$	540