Debt (Tables)

9 Months Ended

Sep. 30, 2016

The Company's debt, including its available credit facilities, consists of the following (in millions):



Facility	Weighted Average Interest Rate at September 30, 2016	Fixed or Floating Interest Rate	Maturity	September 30, 2016			December 31, 2015
Non-Vehicle Debt
Senior Term Loan	3.50%	Floating	6/2023	$	698		$	—
Senior RCF	N/A	Floating	6/2021	—			—
Senior Term Facility	N/A	N/A	N/A	—			2,062
Senior ABL Facility	N/A	N/A	N/A	—			—
Senior Notes⁽¹⁾	6.21%	Fixed	4/2018–10/2024	4,000			3,900
Promissory Notes	7.00%	Fixed	1/2028	27			27
Other Non-Vehicle Debt	2.51%	Fixed	Various	11			2
Unamortized Debt Issuance Costs and Net (Discount) Premium				(43		)	(44		)
Total Non-Vehicle Debt				4,693			5,947
Vehicle Debt
HVF U.S. Vehicle Medium Term Notes
HVF Series 2010-1⁽²⁾	4.96%	Fixed	2/2018	115			240
HVF Series 2011-1⁽²⁾	3.51%	Fixed	3/2017	230			230
HVF Series 2013-1⁽²⁾	1.91%	Fixed	8/2018	625			950
				970			1,420
HVF II U.S. ABS Program
HVF II U.S. Vehicle Variable Funding Notes
HVF II Series 2013-A⁽²⁾	1.63%	Floating	10/2017	1,483			980
HVF II Series 2013-B⁽²⁾	1.68%	Floating	10/2017	746			1,308
HVF II Series 2014-A	N/A	N/A	N/A	—			1,737
				2,229			4,025
HVF II U.S. Vehicle Medium Term Notes
HVF II Series 2015-1⁽²⁾	2.93%	Fixed	3/2020	780			780
HVF II Series 2015-2⁽²⁾	2.30%	Fixed	9/2018	250			250
HVF II Series 2015-3⁽²⁾	2.96%	Fixed	9/2020	350			350
HVF II Series 2016-1⁽²⁾	2.72%	Fixed	3/2019	439			—
HVF II Series 2016-2⁽²⁾	3.25%	Fixed	3/2021	561			—
HVF II Series 2016-3⁽²⁾	2.56%	Fixed	7/2019	400			—
HVF II Series 2016-4⁽²⁾	2.91%	Fixed	7/2021	400			—
				3,180			1,380



Facility	Weighted Average Interest Rate at September 30, 2016	Fixed or Floating Interest Rate	Maturity	September 30, 2016			December 31, 2015
Donlen ABS Program
HFLF Variable Funding Notes
HFLF Series 2013-2⁽²⁾	1.65%	Floating	9/2018	300			370
				300			370
HFLF Medium Term Notes
HFLF Series 2013-3⁽²⁾	1.34%	Floating	10/2016–11/2016	134			270
HFLF Series 2014-1⁽²⁾	1.17%	Floating	12/2016–3/2017	179			288
HFLF Series 2015-1⁽²⁾	1.20%	Floating	3/2018–5/2018	272			295
HFLF Series 2016-1⁽²⁾	1.85%	Floating	2/2019–4/2019	385			—
				970			853
Other Vehicle Debt
U.S. Vehicle RCF⁽³⁾	3.03%	Floating	6/2021	193			—
U.S. Vehicle Financing Facility	N/A	N/A	N/A	—			190
European Revolving Credit Facility	2.11%	Floating	10/2017	381			273
European Vehicle Notes⁽⁴⁾	4.29%	Fixed	1/2019–10/2021	729			464
European Securitization⁽²⁾	1.55%	Floating	10/2018	474			267
Canadian Securitization⁽²⁾	1.88%	Floating	1/2018	267			148
Australian Securitization⁽²⁾	3.12%	Floating	7/2018	121			98
Brazilian Vehicle Financing Facility	17.63%	Floating	10/2016	9			7
New Zealand RCF	4.64%	Floating	9/2018	31			—
Capitalized Leases	2.43%	Floating	10/2016–3/2020	359			362
				2,564			1,809
Unamortized Debt Issuance Costs and Net (Discount) Premium				(43		)	(34		)
Total Vehicle Debt				10,170			9,823
Total Debt				$	14,863		$	15,770

N/A - Not Applicable


(1)	References to the "Senior Notes" include the series of Hertz's unsecured senior notes set forth on the table below. Outstanding principal amounts for each such series of the Senior Notes is also specified below:



(In millions)	Outstanding Principal
Senior Notes	September 30, 2016		December 31, 2015
4.25% Senior Notes due April 2018	$	250	$	250
7.50% Senior Notes due October 2018	—		700
6.75% Senior Notes due April 2019	1,250		1,250
5.875% Senior Notes due October 2020	700		700
7.375% Senior Notes due January 2021	500		500
6.25% Senior Notes due October 2022	500		500
5.50% Senior Notes due October 2024	800		—
	$	4,000	$	3,900

$700 million of the 7.50% Senior Notes due October 2018 were redeemed in July 2016 as further described below. $800 million of the 6.75% Senior Notes due April 2019 were redeemed in October 2016 as described in Note 19, "Subsequent Events."

(1)

Maturity reference is to the "expected final maturity date" as opposed to the subsequent "legal maturity date." The expected final maturity date is the date by which Hertz and investors in the relevant indebtedness expect the relevant indebtedness to be repaid, which in the case of the HFLF Medium Term Notes was based upon various assumptions made at the time of the pricing of such notes. The legal final maturity date is the date on which the relevant indebtedness is legally due and payable.


(2)	Approximately $67 million of the aggregate maximum borrowing capacity under the U.S. Vehicle RCF is scheduled to expire in January 2018.


(3)	References to the "European Vehicle Notes" include the series of HHN BV's (as defined below) unsecured senior notes (converted from Euros to U.S. dollars at a rate of 1.12 to 1) set forth on the table below. Outstanding principal amounts for each such series of the European Vehicle Notes is also specified below:



(In millions)	Outstanding Principal
European Vehicles Notes	September 30, 2016		December 31, 2015
4.375% Senior Notes due January 2019	$	477	$	464
4.125% Senior Notes due October 2021	252		—
	$	729	$	464

The fair value of debt is estimated based on quoted market rates as well as borrowing rates currently available to the Company for loans with similar terms and average maturities (Level 2 inputs).



	As of September 30, 2016				As of December 31, 2015
(In millions)	Nominal Unpaid Principal Balance		Aggregate Fair Value		Nominal Unpaid Principal Balance		Aggregate Fair Value
Non-vehicle Debt	$	4,736	$	4,826	$	5,991	$	6,070
Vehicle Debt	10,213		10,278		9,857		9,854
Total	$	14,949	$	15,104	$	15,848	$	15,924

Schedule of Revolving Credit Facilities

The following facilities were available to the Company as of September 30, 2016:



(In millions)	Remaining Capacity		Availability Under Borrowing Base Limitation
Non-Vehicle Debt
Senior RCF	$	1,100	$	1,100
Total Non-Vehicle Debt	1,100		1,100
Vehicle Debt
U.S. Vehicle RCF	—		4
HVF II U.S. Vehicle Variable Funding Notes	1,036		4
HFLF Variable Funding Notes	200		—
European Revolving Credit Facility	—		—
European Securitization	42		3
Canadian Securitization	—		—
Australian Securitization	72		—
Capitalized Leases	64		—
New Zealand RCF	12		6
Total Vehicle Debt	1,426		17
Total	$	2,526	$	1,117

Schedule of Debt Covenant Compliance Ratios

The financial covenant provides that Hertz's consolidated total net corporate leverage ratio, as defined in the credit agreement related to the Senior RCF, as of the last day of any fiscal quarter, commencing with September 30, 2016, may not exceed the ratios indicated below:



Fiscal Quarter(s) Ending		Maximum Ratio
September 30, 2016		5.25 to 1.00
December 31, 2016 through March 31, 2017		4.75 to 1.00
June 30, 2017 through September 30, 2017		5.25 to 1.00
December 31, 2017		4.75 to 1.00
March 31, 2018		4.50 to 1.00
June 30, 2018 through September 30, 2018		5.00 to 1.00
December 31, 2018 through March 31, 2019		4.50 to 1.00
June 30, 2019 through September 30, 2019		5.00 to 1.00
December 31, 2019 through March 31, 2020		4.50 to 1.00
June 30, 2020 through September 30, 2020		5.00 to 1.00
December 31, 2020 through March 31, 2021		4.50 to 1.00