Guarantor and Non-Guarantor Condensed Consolidating Financial Statements

The following condensed consolidating financial information presents the Condensed Consolidating Balance Sheets as of September 30, 2015 and December 31, 2014, the Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) for the three and nine months ended September 30, 2015 and 2014 and the Statements of Cash Flows for the nine months ended September 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

September 30, 2015

(In millions)



	Parent (The Hertz Corporation)		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations			The Hertz Corporation & Subsidiaries
ASSETS
Cash and cash equivalents	$	189	$	12	$	308	$	—		$	509
Restricted cash and cash equivalents	55		17		208		—			280
Receivables, less allowance for doubtful accounts	302		415		906		—			1,623
Due from affiliates	4,114		2,279		6,047		(12,075		)	365
Inventories, net	18		27		17		—			62
Prepaid expenses and other assets	4,132		891		162		(4,250		)	935
Revenue earning equipment, net	393		2,165		12,068		—			14,626
Property and equipment, net	795		300		182		—			1,277
Investment in subsidiaries, net	7,473		1,754		—		(9,227		)	—
Other intangible assets, net	131		3,155		614		—			3,900
Goodwill	104		1,035		219		—			1,358
Total assets	$	17,706	$	12,050	$	20,731	$	(25,552	)	$	24,935
LIABILITIES AND EQUITY
Intercompany payables	$	7,617	$	1,373	$	3,085	$	(12,075	)	$	—
Accounts payable	264		233		420		—			917
Accrued liabilities	638		191		387		—			1,216
Accrued taxes, net	77		38		2,350		(2,329		)	136
Debt	6,328		66		10,215		—			16,609
Public liability and property damage	143		57		191		—			391
Deferred taxes on income, net	—		2,656		2,292		(1,921		)	3,027
Total liabilities	15,067		4,614		18,940		(16,325		)	22,296
Equity:
The Hertz Corporation and Subsidiaries stockholder's equity	2,639		7,436		1,791		(9,227		)	2,639
Total liabilities and equity	$	17,706	$	12,050	$	20,731	$	(25,552	)	$	24,935

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, net	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, net	—		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 September 30, 2015

(In millions)



	Parent (The Hertz Corporation)			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			The Hertz Corporation & Subsidiaries
Total revenues	$	1,271		$	766		$	1,781		$	(842	)	$	2,976
Expenses:
Direct operating	763			389			413			(1		)	1,564
Depreciation of revenue earning equipment and lease charges, net	650			280			628			(841		)	717
Selling, general and administrative	129			49			81			—			259
Interest expense, net	88			1			68			—			157
Other (income) expense, net	10			—			(39		)	—			(29		)
Total expenses	1,640			719			1,151			(842		)	2,668
Income (loss) before income taxes	(369		)	47			630			—			308
(Provision) benefit for taxes on income (loss)	135			(13		)	(192		)	—			(70		)
Equity in earnings (losses) of subsidiaries, net of tax	472			135			—			(607		)	—
Net income (loss)	238			169			438			(607		)	238
Other comprehensive income (loss), net of tax	(40		)	—			(39		)	39			(40		)
Comprehensive income (loss)	$	198		$	169		$	399		$	(568	)	$	198

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

For the Three Months Ended September 30, 2014

(In millions)



	Parent (The Hertz Corporation)			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			The Hertz Corporation & Subsidiaries
Total revenues	$	1,286		$	757		$	1,738		$	(660	)	$	3,121
Expenses:
Direct operating	797			399			507			(1		)	1,702
Depreciation of revenue earning equipment and lease charges, net	515			199			691			(659		)	746
Selling, general and administrative	149			60			94			—			303
Interest expense, net	86			4			73			—			163
Other (income) expense, net	8			(4		)	(1		)	—			3
Total expenses	1,555			658			1,364			(660		)	2,917
Income (loss) before income taxes	(269		)	99			374			—			204
(Provision) benefit for taxes on income (loss)	91			(38		)	(107		)	—			(54		)
Equity in earnings (losses) of subsidiaries, net of tax	328			56			—			(384		)	—
Net income (loss)	150			117			267			(384		)	150
Other comprehensive income (loss), net of tax	(37		)	—			(40		)	40			(37		)
Comprehensive income (loss)	$	113		$	117		$	227		$	(344	)	$	113

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

For the Nine Months Ended September 30, 2015

(In millions)



	Parent (The Hertz Corporation)			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			The Hertz Corporation & Subsidiaries
Total revenues	$	3,567		$	2,125		$	4,450		$	(2,020	)	$	8,122
Expenses:
Direct operating	2,174			1,151			1,152			(2		)	4,475
Depreciation of revenue earning equipment and lease charges, net	1,539			666			1,914			(2,017		)	2,102
Selling, general and administrative	397			170			255			(1		)	821
Interest expense, net	263			12			189			—			464
Other (income) expense, net	8			(2		)	(40		)	—			(34		)
Total expenses	4,381			1,997			3,470			(2,020		)	7,828
Income (loss) before income taxes	(814		)	128			980			—			294
(Provision) benefit for taxes on income (loss)	171			(28		)	(232		)	—			(89		)
Equity in earnings (losses) of subsidiaries, net of tax	848			248			—			(1,096		)	—
Net income (loss)	205			348			748			(1,096		)	205
Other comprehensive income (loss), net of tax	(75		)	(4		)	(78		)	82			(75		)
Comprehensive income (loss)	$	130		$	344		$	670		$	(1,014	)	$	130

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

For the Nine Months Ended September 30, 2014

(In millions)



	Parent (The Hertz Corporation)			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			The Hertz Corporation & Subsidiaries
Total revenues	$	3,622		$	2,112		$	4,834		$	(2,081	)	$	8,487
Expenses:
Direct operating	2,214			1,142			1,384			(2		)	4,738
Depreciation of revenue earning equipment and lease charges, net	1,716			542			2,000			(2,078		)	2,180
Selling, general and administrative	416			158			271			(1		)	844
Interest expense, net	259			15			205			—			479
Other (income) expense, net	(20		)	(5		)	3			—			(22		)
Total expenses	4,585			1,852			3,863			(2,081		)	8,219
Income (loss) before income taxes	(963		)	260			971			—			268
(Provision) benefit for taxes on income (loss)	345			(99		)	(358		)	—			(112		)
Equity in earnings (losses) of subsidiaries, net of tax	777			109			—			(886		)	—
Net income (loss)	159			270			613			(886		)	156
Other comprehensive income (loss), net of tax	(44		)	(3		)	(43		)	46			(44		)
Comprehensive income (loss)	$	115		$	267		$	570		$	(840	)	$	112

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the Nine Months Ended September 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	$	(1,662	)	$	340		$	4,472		$	(464	)	$	2,686
Cash flows from investing activities:
Net change in restricted cash and cash equivalents	27			9			248			—			284
Revenue earning equipment expenditures	(299		)	(540		)	(9,171		)	—			(10,010		)
Proceeds from disposal of revenue earning equipment	195			159			6,434			—			6,788
Capital asset expenditures, non-fleet	(124		)	(51		)	(75		)	—			(250		)
Proceeds from disposal of property and equipment	35			13			21			—			69
Sales of (investment in) shares in equity method investment	—			—			100			—			100
Capital contributions to subsidiaries	(2,006		)	—			—			2,006			—
Return of capital from subsidiaries	3,688			79			—			(3,767		)	—
Loan to Parent / Guarantor from Non-Guarantor	—			—			(684		)	684			—
Acquisitions, net of cash acquired	(17		)	(3		)	(75		)	—			(95		)
Advances to Hertz Global Holdings, Inc.	(270		)	—			—			—			(270		)
Net cash provided by (used in) investing activities	1,229			(334		)	(3,202		)	(1,077		)	(3,384		)
Cash flows from financing activities:
Proceeds from issuance of long-term debt	2			—			1,074			—			1,076
Repayment of long-term debt	(17		)	—			(1,083		)	—			(1,100		)
Short-term borrowings:
Proceeds	—			—			543			—			543
Payments	—			—			(434		)	—			(434		)
Proceeds under the revolving lines of credit	1,482			—			4,424			—			5,906
Payments under the revolving lines of credit	(1,531		)	(6		)	(3,706		)	—			(5,243		)
Capital contributions received from parent	—			—			2,006			(2,006		)	—
Loan to Parent / Guarantor from Non-Guarantor	684			—			—			(684		)	—
Payment of dividends and return of capital	—			—			(4,231		)	4,231			—
Payment of financing costs	—			(2		)	(9		)	—			(11		)
Other	—			—			1			—			1
Net cash provided by (used in) financing activities	620			(8		)	(1,415		)	1,541			738
Effect of foreign exchange rate changes on cash and cash equivalents	—			—			(21		)	—			(21		)
Net change in cash and cash equivalents during the period	187			(2		)	(166		)	—			19
Cash and cash equivalents at beginning of period	2			14			474			—			490
Cash and cash equivalents at end of period	$	189		$	12		$	308		$	—		$	509

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the Nine Months Ended September 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	$	(551	)	$	363		$	3,498		$	(577	)	$	2,733
Cash flows from investing activities:
Net change in restricted cash and cash equivalents	(46		)	53			100			—			107
Revenue earning equipment expenditures	(105		)	(484		)	(7,853		)	—			(8,442		)
Proceeds from disposal of revenue earning equipment	86			205			5,025			—			5,316
Capital assets expenditures, non-fleet	(121		)	(24		)	(87		)	—			(232		)
Proceeds from disposal of property and equipment	30			10			27			—			67
Sales of (investment in) shares in equity method investment	—			—			(30		)	—			(30		)
Capital contributions to subsidiaries	(916		)	(37		)	—			953			—
Return of capital from subsidiaries	1,093			—			—			(1,093		)	—
Acquisitions, net of cash acquired	—			(24		)	(45		)	—			(69		)
Loan to Parent / Guarantor from Non-Guarantor	—			(43		)	(185		)	228			—
Advances to Hertz Global Holdings, Inc.	(28		)	—			—			—			(28		)
Repayments from Hertz Global Holdings, Inc.	25			—			—			—			25
Net cash provided by (used in) investing activities	18			(344		)	(3,048		)	88			(3,286		)
Cash flows from financing activities:
Proceeds from issuance of long-term debt	—			—			400			—			400
Payment of long-term debt	(37		)	—			(170		)	—			(207		)
Short-term borrowings:
Proceeds	—			—			528			—			528
Payments	—			—			(537		)	—			(537		)
Proceeds under the revolving lines of credit	2,220			—			1,798			—			4,018
Payments under the revolving lines of credit	(1,831		)	(7		)	(1,567		)	—			(3,405		)
Capital contributions received from parent	—			—			953			(953		)	—
Loan to Parent / Guarantor from Non-Guarantor	185			—			43			(228		)	—
Payment of dividends and return of capital	—			—			(1,670		)	1,670			—
Payment of financing costs	(2		)	(3		)	(7		)	—			(12		)
Other	4			—			—			—			4
Net cash provided by (used in) financing activities	539			(10		)	(229		)	489			789
Effect of foreign exchange rate changes on cash and cash equivalents	—			—			(18		)	—			(18		)
Net change in cash and cash equivalents during the period	6			9			203			—			218
Cash and cash equivalents at beginning of period	62			6			343			—			411
Cash and cash equivalents at end of period	$	68		$	15		$	546		$	—		$	629