Guarantor and Non-Guarantor Condensed Consolidating Financial Statements (Tables)

9 Months Ended

Sep. 30, 2015

Guarantor and Non-Guarantor Condensed Consolidating Financial Statements Disclosure [Abstract]

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 Income Statement

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 Cash Flow Statement

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