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Guarantor and Non-Guarantor Condensed Consolidating Financial Statements (Tables)
 6 Months Ended
Jun. 30, 2015
Guarantor and Non-Guarantor Condensed Consolidating Financial Statements Disclosure [Abstract]  
Condensed Balance Sheet
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 Income Statement
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 Cash Flow Statement
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