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

3 Months Ended

Mar. 31, 2016

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

CONDENSED CONSOLIDATING BALANCE SHEET

March 31, 2016

(In millions)



	Parent (The Hertz Corporation)		Guarantor Subsidiaries		Non- Guarantor Subsidiaries			Eliminations			The Hertz Corporation & Subsidiaries
ASSETS
Cash and cash equivalents	$	133	$	12	$	711		$	—		$	856
Restricted cash and cash equivalents	67		16		270			—			353
Receivables, net of allowance	443		396		679			—			1,518
Due from affiliates	3,844		2,436		7,236			(13,516		)	—
Inventories, net	15		19		19			—			53
Prepaid expenses and other assets	4,461		951		(136		)	(4,625		)	651
Revenue earning equipment, net	434		2,062		11,729			—			14,225
Property and equipment, net	723		277		214			—			1,214
Investment in subsidiaries, net	7,795		1,158		—			(8,953		)	—
Other intangible assets, net	134		3,643		27			—			3,804
Goodwill	102		1,035		216			—			1,353
Total assets	$	18,151	$	12,005	$	20,965		$	(27,094	)	$	24,027
LIABILITIES AND EQUITY
Due to affiliates	$	8,966	$	1,125	$	3,425		$	(13,516	)	$	—
Accounts payable	278		226		878			—			1,382
Accrued liabilities	616		136		338			—			1,090
Accrued taxes, net	80		32		2,942			(2,888		)	166
Debt	6,091		59		9,922			—			16,072
Public liability and property damage	150		65		198			—			413
Deferred taxes on income, net	—		2,706		1,965			(1,737		)	2,934
Total liabilities	16,181		4,349		19,668			(18,141		)	22,057
Equity:
Stockholder's equity	1,970		7,656		1,297			(8,953		)	1,970
Total liabilities and equity	$	18,151	$	12,005	$	20,965		$	(27,094	)	$	24,027

CONDENSED CONSOLIDATING BALANCE SHEET

December 31, 2015

(In millions)



	Parent (The Hertz Corporation)		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations			The Hertz Corporation & Subsidiaries
ASSETS
Cash and cash equivalents	$	179	$	17	$	283	$	—		$	479
Restricted cash and cash equivalents	57		19		273		—			349
Receivables, net of allowance	399		428		1,247		—			2,074
Due from affiliates	4,158		3,238		7,543		(14,939		)	—
Inventories, net	15		21		15		—			51
Prepaid expenses and other assets	4,239		960		13		(4,437		)	775
Revenue earning equipment, net	388		2,087		10,653		—			13,128
Property and equipment, net	777		288		183		—			1,248
Investment in subsidiaries, net	7,593		1,161		—		(8,754		)	—
Other intangible assets, net	136		3,656		30		—			3,822
Goodwill	102		1,035		217		—			1,354
Total assets	$	18,043	$	12,910	$	20,457	$	(28,130	)	$	23,280
LIABILITIES AND EQUITY
Due to affiliates	$	8,888	$	2,129	$	3,922	$	(14,939	)	$	—
Accounts payable	262		171		442		—			875
Accrued liabilities	608		155		343		—			1,106
Accrued taxes, net	65		30		2,842		(2,765		)	172
Debt	6,126		61		9,647		—			15,834
Public liability and property damage	146		56		200		—			402
Deferred taxes on income, net	—		2,703		1,912		(1,672		)	2,943
Total liabilities	16,095		5,305		19,308		(19,376		)	21,332
Equity:
Stockholder's equity	1,948		7,605		1,149		(8,754		)	1,948
Total liabilities and equity	$	18,043	$	12,910	$	20,457	$	(28,130	)	$	23,280

Condensed Income Statement

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

For the Three Months Ended March 31, 2016

(In millions)



	Parent (The Hertz Corporation)			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			The Hertz Corporation & Subsidiaries
Total revenues	$	1,066		$	626		$	1,338		$	(719	)	$	2,311
Expenses:
Direct operating	684			342			316			(1		)	1,341
Depreciation of revenue earning equipment and lease charges, net	621			214			589			(718		)	706
Selling, general and administrative	145			53			69			—			267
Interest expense, net	89			—			65			—			154
Other (income) expense, net	—			(9		)	(82		)	—			(91		)
Total expenses	1,539			600			957			(719		)	2,377
Income (loss) before income taxes and equity in earnings (losses) of subsidiaries	(473		)	26			381			—			(66		)
(Provision) benefit for taxes on income (loss)	187			(11		)	(159		)	—			17
Equity in earnings (losses) of subsidiaries, net of tax	237			56			—			(293		)	—
Net income (loss)	(49		)	71			222			(293		)	(49		)
Other comprehensive income (loss), net of tax	54			(4		)	53			(49		)	54
Comprehensive income (loss)	$	5		$	67		$	275		$	(342	)	$	5

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

For the Three Months Ended March 31, 2015

(In millions)



	Parent (The Hertz Corporation)			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			The Hertz Corporation & Subsidiaries
Total revenues	$	1,115		$	657		$	1,278		$	(596	)	$	2,454
Expenses:
Direct operating	694			378			337			(1		)	1,408
Depreciation of revenue earning equipment and lease charges, net	455			184			663			(595		)	707
Selling, general and administrative	114			62			90			—			266
Interest expense, net	91			5			58			—			154
Other (income) expense, net	—			—			5			—			5
Total expenses	1,354			629			1,153			(596		)	2,540
Income (loss) before income taxes and equity in earnings (losses) of subsidiaries	(239		)	28			125			—			(86		)
(Provision) benefit for taxes on income (loss)	(32		)	2			46			—			16
Equity in earnings (losses) of subsidiaries, net of tax	201			46			—			(247		)	—
Net income (loss)	(70		)	76			171			(247		)	(70		)
Other comprehensive income (loss), net of tax	(46		)	(4		)	(46		)	50			(46		)
Comprehensive income (loss)	$	(116	)	$	72		$	125		$	(197	)	$	(116	)

Condensed Cash Flow Statement

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the Three Months Ended March 31, 2016

(In millions)



	Parent (The Hertz Corporation)			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			The Hertz Corporation & Subsidiaries
Net cash provided by (used in) operating activities	$	(777	)	$	(30	)	$	1,572		$	(185	)	$	580
Cash flows from investing activities:
Net change in restricted cash and cash equivalents	(9		)	3			4			—			(2		)
Revenue earning equipment expenditures	(132		)	(46		)	(3,449		)	—			(3,627		)
Proceeds from disposal of revenue earning equipment	108			52			2,850			—			3,010
Capital asset expenditures, non-fleet	(29		)	(13		)	(11		)	—			(53		)
Proceeds from disposal of property and equipment	6			6			10			—			22
Sales of (investment in) shares in equity method investment	—			—			233			—			233
Capital contributions to subsidiaries	(372		)	—			—			372			—
Return of capital from subsidiaries	847			25			—			(872		)	—
Loan to Parent / Guarantor from Non-Guarantor	—			—			(340		)	340			—
Net cash provided by (used in) investing activities	419			27			(703		)	(160		)	(417		)
Cash flows from financing activities:
Proceeds from issuance of long-term debt	—			—			1,000			—			1,000
Repayment of long-term debt	(6		)	—			(179		)	—			(185		)
Short-term borrowings:
Proceeds	—			—			151			—			151
Payments	—			—			(132		)	—			(132		)
Proceeds under the revolving lines of credit	365			—			1,298			—			1,663
Payments under the revolving lines of credit	(398		)	(2		)	(1,896		)	—			(2,296		)
Capital contributions received from parent	—			—			372			(372		)	—
Loan to Parent / Guarantor from Non-Guarantor	340			—			—			(340		)	—
Payment of dividends and return of capital	—			—			(1,057		)	1,057			—
Payment of financing costs	—			—			(10		)	—			(10		)
Repayments from Hertz Global Holdings, Inc.	11			—			—			—			11
Net cash provided by (used in) financing activities	312			(2		)	(453		)	345			202
Effect of foreign exchange rate changes on cash and cash equivalents	—			—			12			—			12
Net change in cash and cash equivalents during the period	(46		)	(5		)	428			—			377
Cash and cash equivalents at beginning of period	179			17			283			—			479
Cash and cash equivalents at end of period	$	133		$	12		$	711		$	—		$	856

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the Three Months Ended March 31, 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	$	179		$	(2	)	$	1,271		$	(665	)	$	783
Cash flows from investing activities:
Net change in restricted cash and cash equivalents	(67		)	12			209			—			154
Revenue earning equipment expenditures	(234		)	(51		)	(3,153		)	—			(3,438		)
Proceeds from disposal of revenue earning equipment	75			69			2,145			—			2,289
Capital assets expenditures, non-fleet	(36		)	(15		)	(46		)	—			(97		)
Proceeds from disposal of property and equipment	14			2			6			—			22
Capital contributions to subsidiaries	(713		)	—			—			713			—
Return of capital from subsidiaries	452			—			—			(452		)	—
Acquisitions, net of cash acquired	(18		)	(5		)	(73		)	—			(96		)
Loan to Parent / Guarantor from Non-Guarantor	—			—			(432		)	432			—
Advances to Hertz Global Holdings, Inc.	(5		)	—			—			—			(5		)
Net cash provided by (used in) investing activities	(532		)	12			(1,344		)	693			(1,171		)
Cash flows from financing activities:
Repayment of long-term debt	(6		)	—			(1,021		)	—			(1,027		)
Short-term borrowings:
Proceeds	—			—			175			—			175
Payments	—			—			(142		)	—			(142		)
Proceeds under the revolving lines of credit	656			—			2,670			—			3,326
Payments under the revolving lines of credit	(610		)	(2		)	(1,216		)	—			(1,828		)
Capital contributions received from parent	—			—			713			(713		)	—
Loan to Parent / Guarantor from Non-Guarantor	432			—			—			(432		)	—
Payment of dividends and return of capital	—			—			(1,117		)	1,117			—
Payment of financing costs	—			—			(1		)	—			(1		)
Net cash provided by (used in) financing activities	472			(2		)	61			(28		)	503
Effect of foreign exchange rate changes on cash and cash equivalents	—			—			(20		)	—			(20		)
Net change in cash and cash equivalents during the period	119			8			(32		)	—			95
Cash and cash equivalents at beginning of period	2			14			474			—			490
Cash and cash equivalents at end of period	$	121		$	22		$	442		$	—		$	585