2.2.0.7 false Debt 1080 - Disclosure - Debt true false false false 1 USD false false USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 $ 2 Debt 0 hzc_DebtDisclosureAbstract hzc false na duration No definition available. false false false false false true false false false false false false 1 false false false false 0 0 false false false xbrli:stringItemType string No definition available. false 3 Debt 1 us-gaap_DebtDisclosureTextBlock us-gaap true na duration No definition available. false false false false false false false false false false false terselabel false 1 false false false false 0 0 <table style="font-size:10pt; font-family:'Times New Roman',times,serif;"> <tr> <td> Note 8Debt Our debt consists of the following (in millions of dollars): <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 10%; WIDTH: 80%; PADDING-TOP: 0pt; POSITION: relative">   <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"> <td style="FONT-FAMILY: arial" align="left" width="10"></td> <td style="FONT-FAMILY: arial" align="left" width="10"></td> <td style="FONT-FAMILY: arial" align="left" width="10"></td> <td style="FONT-FAMILY: arial" align="left"></td> <td style="FONT-FAMILY: arial" width="12"></td> <td style="FONT-FAMILY: arial" align="right" width="7"></td> <td style="FONT-FAMILY: arial" width="55"></td> <td style="FONT-FAMILY: arial" width="12"></td> <td style="FONT-FAMILY: arial" align="right" width="7"></td> <td style="FONT-FAMILY: arial" width="72"></td> <td style="FONT-FAMILY: arial" width="12"></td></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: arial" align="left" colspan="4">  </th> <th style="FONT-FAMILY: arial"> </th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: arial" align="center" colspan="2">June 30, 2010</th> <th style="FONT-FAMILY: arial"> </th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: arial" align="center" colspan="2">December 31, 2009</th> <th style="FONT-FAMILY: arial"> </th></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: arial" colspan="4"> Corporate Debt</td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial"> </td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: arial" colspan="4"> Senior Term Facility, average interest rate: 2010, 2.1%; 2009, 2.0% (effective average interest rate: 2010, 2.1%; 2009, 2.0%); net of unamortized discount: 2010, $11.6; 2009, $13.9</td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial" align="right">$</td> <td style="FONT-FAMILY: arial" align="right">1,340.2</td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial" align="right">$</td> <td style="FONT-FAMILY: arial" align="right">1,344.7</td> <td style="FONT-FAMILY: arial"> </td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: arial" colspan="4"> Senior ABL Facility; net of unamortized discount: 2010, $7.4; 2009, $9.6</td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial" align="right">(7.4</td> <td style="FONT-FAMILY: arial">)</td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial" align="right">(9.6</td> <td style="FONT-FAMILY: arial">)</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: arial" colspan="4"> Senior Notes, average interest rate: 2010, 8.7%; 2009, 8.7%</td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial" align="right">2,009.4</td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial" align="right">2,054.7</td> <td style="FONT-FAMILY: arial"> </td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: arial" colspan="4"> Senior Subordinated Notes, average interest rate: 2010, 10.5%; 2009, 10.5%</td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial" align="right">518.5</td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial" align="right">518.5</td> <td style="FONT-FAMILY: arial"> </td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: arial" colspan="4"> Promissory Notes, average interest rate: 2010, 7.5%; 2009, 7.3% (effective average interest rate: 2010, 7.5%; 2009, 7.4%); net of unamortized discount: 2010, $3.1; 2009, $3.3</td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial" align="right">342.6</td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial" align="right">391.4</td> <td style="FONT-FAMILY: arial"> </td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: arial" colspan="4"> Notes payable, average interest rate: 2010, 6.0%; 2009, 8.0%</td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial" align="right">8.9</td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial" align="right">9.6</td> <td style="FONT-FAMILY: arial"> </td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: arial" colspan="4"> Foreign subsidiaries' debt denominated in foreign currencies:</td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial"> </td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial" colspan="3"> Short-term bank borrowings, average interest rate: 2010, 7.7%; 2009, 10.8%</td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial" align="right">12.0</td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial" align="right">7.3</td> <td style="FONT-FAMILY: arial"> </td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial" colspan="3"> Other borrowings, average interest rate: 2010, 2.5%; 2009, 2.5%</td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial" align="right">4.4</td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial" align="right">5.4</td> <td style="FONT-FAMILY: arial"> </td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: arial" valign="bottom" colspan="4"> </td> <td style="FONT-FAMILY: arial" valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: arial" valign="bottom" align="right" colspan="2"> </td> <td style="FONT-FAMILY: arial" valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: arial" valign="bottom" align="right" colspan="2"> </td> <td style="FONT-FAMILY: arial" valign="bottom"> </td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial"> Total Corporate Debt</td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial" align="right">4,228.6</td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial" align="right">4,322.0</td> <td style="FONT-FAMILY: arial"> </td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: arial" valign="bottom" colspan="4"> </td> <td style="FONT-FAMILY: arial" valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: arial" valign="bottom" align="right" colspan="2"> </td> <td style="FONT-FAMILY: arial" valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: arial" valign="bottom" align="right" colspan="2"> </td> <td style="FONT-FAMILY: arial" valign="bottom"> </td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: arial" colspan="4"> Fleet Debt</td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial"> </td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: arial" colspan="4"> U.S. Fleet Debt, average interest rate: 2010, 4.1%; 2009, 4.7% (effective average interest rate: 2010, 4.1%; 2009, 4.7%); net of unamortized discount: 2010, $14.4; 2009, $16.7</td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial" align="right">5,217.4</td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial" align="right">4,058.3</td> <td style="FONT-FAMILY: arial"> </td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: arial" colspan="4"> International Fleet Debt(1), average interest rate: 2009, 2.1% (effective average interest rate: 2009, 2.2%); net of unamortized discount: 2009, $8.7</td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial" align="right"></td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial" align="right">705.3</td> <td style="FONT-FAMILY: arial"> </td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: arial" colspan="4"> International ABS Fleet Financing Facility, average interest rate: 2010, 3.6%; 2009, 3.6%; (effective average interest rate: 2010, 3.6%; 2009, 3.6%); net of unamortized discount: 2010, $2.4; 2009, $5.7</td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial" align="right">446.1</td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial" align="right">383.2</td> <td style="FONT-FAMILY: arial"> </td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: arial" colspan="4"> Fleet Financing Facility, average interest rate: 2010, 1.6%; 2009, 1.5% (effective average interest rate: 2010, 1.6%; 2009, 1.5%); net of unamortized discount: 2010, $0.5; 2009, $0.8</td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial" align="right">162.5</td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial" align="right">147.2</td> <td style="FONT-FAMILY: arial"> </td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: arial" colspan="4"> Brazilian Fleet Financing Facility, average interest rate: 2010, 9.9%; 2009, 13.3%</td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial" align="right">74.5</td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial" align="right">69.3</td> <td style="FONT-FAMILY: arial"> </td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: arial" colspan="4"> Canadian Fleet Financing Facility, average interest rate: 2010, 0.6%; 2009, 0.5%</td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial" align="right">115.2</td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial" align="right">55.6</td> <td style="FONT-FAMILY: arial"> </td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: arial" colspan="4"> Belgian Fleet Financing Facility(1), average interest rate: 2009, 1.8%</td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial" align="right"></td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial" align="right">33.7</td> <td style="FONT-FAMILY: arial"> </td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: arial" colspan="4"> Capitalized Leases, average interest rate: 2010, 4.0%; 2009, 4.8%</td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial" align="right">314.7</td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial" align="right">222.4</td> <td style="FONT-FAMILY: arial"> </td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: arial" colspan="4"> Euro Notes(1), average interest rate: 2010, 8.5% (effective average interest rate: 2010, 8.5%); net of unamortized discount: 2010, $2.6</td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial" align="right">488.5</td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial" align="right"></td> <td style="FONT-FAMILY: arial"> </td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: arial" colspan="4"> European Credit Facility(1), average interest rate: 2010, 4.2%</td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial" align="right">269.4</td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial" align="right"></td> <td style="FONT-FAMILY: arial"> </td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: arial" valign="bottom" colspan="4"> </td> <td style="FONT-FAMILY: arial" valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: arial" valign="bottom" align="right" colspan="2"> </td> <td style="FONT-FAMILY: arial" valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: arial" valign="bottom" align="right" colspan="2"> </td> <td style="FONT-FAMILY: arial" valign="bottom"> </td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial"> Total Fleet Debt</td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial" align="right">7,088.3</td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial" align="right">5,675.0</td> <td style="FONT-FAMILY: arial"> </td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: arial" valign="bottom" colspan="4"> </td> <td style="FONT-FAMILY: arial" valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: arial" valign="bottom" align="right" colspan="2"> </td> <td style="FONT-FAMILY: arial" valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: arial" valign="bottom" align="right" colspan="2"> </td> <td style="FONT-FAMILY: arial" valign="bottom"> </td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial" colspan="2"> Total Debt</td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial" align="right">$</td> <td style="FONT-FAMILY: arial" align="right">11,316.9</td> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial" align="right">$</td> <td style="FONT-FAMILY: arial" align="right">9,997.0</td> <td style="FONT-FAMILY: arial"> </td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: arial" valign="bottom" colspan="4"> </td> <td style="FONT-FAMILY: arial" valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: arial" valign="bottom" align="right" colspan="2"> </td> <td style="FONT-FAMILY: arial" valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: arial" valign="bottom" align="right" colspan="2"> </td> <td style="FONT-FAMILY: arial" valign="bottom"> </td></tr></table></div> </div> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 10%; PADDING-TOP: 0pt; POSITION: relative; TEXT-ALIGN: left"> <hr style="COLOR: #000000" align="left" width="26%" noshade="noshade" size="1" /> <dl compact="compact"> <dt style="MARGIN-BOTTOM: -9pt; FONT-FAMILY: arial">Note:</dt> <dd style="FONT-FAMILY: arial; TEXT-ALIGN: justify">For further information on the definitions and terms of our debt, see Note 3 of the Notes to our audited annual consolidated financial statements included in our Form 10-K under the caption "Item 8Financial Statements and Supplementary Data" and Note 1Background and Liquidity of this Form 10-Q, or this "Report." </dd> <dt style="MARGIN-BOTTOM: -9pt; FONT-FAMILY: arial">(1)</dt> <dd style="FONT-FAMILY: arial; TEXT-ALIGN: justify">The International Fleet Debt and Belgian Fleet Financing Facility were refinanced in the three months ended June 30, 2010 with the proceeds of the Euro Notes and the European Credit Facility. </dd></dl></div> The aggregate amounts of maturities of debt for each of the twelve-month periods ending June 30 (in millions of dollars) are as follows: 2011, $5,373.4 (including $3,060.9 of other short-term borrowings); 2012, $180.2; 2013, $1,929.4; 2014, $2,009.8; 2015, $828.7; after 2015, $1,037.4. Our short-term borrowings of $3,060.9 million as of June 30, 2010 include, among other items, the amounts outstanding under our International ABS Fleet Financing Facility, Fleet Financing Facility, Brazilian Fleet Financing Facility, Canadian Fleet Financing Facility, Capitalized Leases and European Credit Facility. These amounts are considered short-term in nature since they have maturity dates of three months or less; however these facilities are revolving in nature and do not expire at the time of the short-term debt maturity except for our International ABS Fleet Financing Facility and Brazilian Fleet Financing Facility which mature in December 2010. As of June 30, 2010, there were outstanding standby letters of credit totaling $685.7 million. Of this amount, $423.5 million has been issued for the benefit of the ABS Program ($200.0 million of which was issued by Ford and $223.5 million of which was issued under the Senior Credit Facilities) and the remainder is primarily to support self-insurance programs (including insurance policies with respect to which we have indemnified the policy issuers for any losses) in the United States, Canada and Europe and to support airport concession obligations in the United States and Canada. As of June 30, 2010, none of these letters of credit have been drawn upon. In November 2010, the "Ford" letter of credit by its terms will expire in conjunction with the maturity of the 2005 Notes. Second Quarter Events In June 2010, HVF issued the Series 2009-2 Class B Notes which mature in 2013 and 2015. The net proceeds of the offering were or will be used to purchase vehicles under our ABS program, used to pay other ABS indebtedness or, to the extent permitted, used for general purposes. The Series 2009-2 Class B Notes are included in U.S. Fleet Debt. In June 2010, we issued the Euro Notes and entered into the European Credit Facility. The net proceeds of the Euro Notes and European Credit Facility were used to refinance our International Fleet Debt and Belgian Fleet Financing Facility, both of which were due to mature in December 2010, and the excess was or will be used for general purposes. The Euro Notes and the European Credit Facility will be the primary fleet financing for our rental car operations in Germany, Italy, Spain, Belgium, Luxembourg and Switzerland and mature in 2013. The Euro Notes and the European Credit Facility are guaranteed on a senior unsecured basis by Hertz and certain U.S. subsidiaries of Hertz and on a senior secured basis by certain non-U.S. subsidiaries of Hertz. See Note 18Subsequent Events. Guarantees and Security There have been no material changes to the guarantees and security provisions of the debt instruments and credit facilities under which our indebtedness as of June 30, 2010 has been issued from the terms as disclosed in our Form 10-K, except as described above. Covenants Certain of our debt instruments and credit facilities contain a number of covenants that, among other things, limit or restrict the ability of the borrowers and the guarantors to dispose of assets, incur additional indebtedness, incur guarantee obligations, prepay other indebtedness, make dividends and other restricted payments, create liens, make investments, make acquisitions, engage in mergers, change the nature of their business, make capital expenditures, or engage in certain transactions with affiliates. Some of these agreements also require the maintenance of certain financial covenants. As of June 30, 2010, we were in compliance with all of these financial covenants. As of June 30, 2010, we had an aggregate principal amount outstanding of $1,351.8 million pursuant to our Senior Term Facility and no amounts outstanding in our Senior ABL Facility. As of June 30, 2010, Hertz was required under the Senior Term Facility to have a consolidated leverage ratio of not more than 5.25:1 and a consolidated interest expense coverage ratio of not less than 2.00:1. In addition, under our Senior ABL Facility, if there was less than $200.0 million of available borrowing capacity under that facility as of June 30, 2010, Hertz was required to have a consolidated leverage ratio of not more than 5.25:1 and a consolidated fixed charge coverage ratio of not less than 1:1 for the quarter then ended. Under the Senior Term Facility, as of June 30, 2010, we had a consolidated leverage ratio of 3.54:1 and a consolidated interest expense coverage ratio of 3.40:1. Since we had maintained sufficient borrowing capacity under our Senior ABL Facility as of June 30, 2010, and expect to maintain such capacity in the future, the consolidated fixed charge coverage ratio was not deemed relevant for presentation. For further information on the terms of our senior credit facilities, see Note 3 of the Notes to our audited annual consolidated financial statements included in our Form 10-K under the caption "Item 8Financial Statements and Supplementary Data." Derivatives We utilize certain derivative instruments to enhance our ability to manage risks relating to cash flow and interest rate exposure. See Note 14Financial Instruments. Credit Facilities As of June 30, 2010, the following credit facilities were available for the use of Hertz and its subsidiaries (in millions of dollars): <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 10%; WIDTH: 80%; PADDING-TOP: 0pt; POSITION: relative">   <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"> <td style="FONT-FAMILY: arial" align="left" width="10"></td> <td style="FONT-FAMILY: arial" align="left"></td> <td style="FONT-FAMILY: arial" width="12"></td> <td style="FONT-FAMILY: arial" align="right" width="7"></td> <td style="FONT-FAMILY: arial" width="55"></td> <td style="FONT-FAMILY: arial" width="12"></td> <td style="FONT-FAMILY: arial" align="right" width="7"></td> <td style="FONT-FAMILY: arial" width="56"></td> <td style="FONT-FAMILY: arial" width="12"></td></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: arial" align="left" colspan="2">  </th> <th style="FONT-FAMILY: arial"> </th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: arial" align="center" colspan="2">Remaining Capacity</th> <th style="FONT-FAMILY: arial"> </th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: arial" align="center" colspan="2">Availability Under Borrowing Base Limitation</th> <th style="FONT-FAMILY: arial"> </th></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: arial" valign="bottom" colspan="2"> Corporate Debt</td> <td style="FONT-FAMILY: arial" valign="bottom"> </td> <td style="FONT-FAMILY: arial" valign="bottom"> </td> <td style="FONT-FAMILY: arial" valign="bottom"> </td> <td style="FONT-FAMILY: arial" valign="bottom"> </td> <td style="FONT-FAMILY: arial" valign="bottom"> </td> <td style="FONT-FAMILY: arial" valign="bottom"> </td> <td style="FONT-FAMILY: arial" valign="bottom"> </td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: arial" valign="bottom" colspan="2"> Senior Term Facility</td> <td style="FONT-FAMILY: arial" valign="bottom"> </td> <td style="FONT-FAMILY: arial" valign="bottom" align="right">$</td> <td style="FONT-FAMILY: arial" valign="bottom" align="right"></td> <td style="FONT-FAMILY: arial" valign="bottom"> </td> <td style="FONT-FAMILY: arial" valign="bottom" align="right">$</td> <td style="FONT-FAMILY: arial" valign="bottom" align="right"></td> <td style="FONT-FAMILY: arial" valign="bottom"> </td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: arial" valign="bottom" colspan="2"> Senior ABL Facility</td> <td style="FONT-FAMILY: arial" valign="bottom"> </td> <td style="FONT-FAMILY: arial" valign="bottom"> </td> <td style="FONT-FAMILY: arial" valign="bottom" align="right">1,591.7</td> <td style="FONT-FAMILY: arial" valign="bottom"> </td> <td style="FONT-FAMILY: arial" valign="bottom"> </td> <td style="FONT-FAMILY: arial" valign="bottom" align="right">815.9</td> <td style="FONT-FAMILY: arial" valign="bottom"> </td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: arial" valign="bottom" colspan="2"> </td> <td style="FONT-FAMILY: arial" valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: arial" valign="bottom" align="right" colspan="2"> </td> <td style="FONT-FAMILY: arial" valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: arial" valign="bottom" align="right" colspan="2"> </td> <td style="FONT-FAMILY: arial" valign="bottom"> </td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial" valign="bottom"> Total Corporate Debt</td> <td style="FONT-FAMILY: arial" valign="bottom"> </td> <td style="FONT-FAMILY: arial" valign="bottom"> </td> <td style="FONT-FAMILY: arial" valign="bottom" align="right">1,591.7</td> <td style="FONT-FAMILY: arial" valign="bottom"> </td> <td style="FONT-FAMILY: arial" valign="bottom"> </td> <td style="FONT-FAMILY: arial" valign="bottom" align="right">815.9</td> <td style="FONT-FAMILY: arial" valign="bottom"> </td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: arial" valign="bottom" colspan="2"> </td> <td style="FONT-FAMILY: arial" valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: arial" valign="bottom" align="right" colspan="2"> </td> <td style="FONT-FAMILY: arial" valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: arial" valign="bottom" align="right" colspan="2"> </td> <td style="FONT-FAMILY: arial" valign="bottom"> </td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: arial" valign="bottom" colspan="2"> Fleet Debt</td> <td style="FONT-FAMILY: arial" valign="bottom"> </td> <td style="FONT-FAMILY: arial" valign="bottom"> </td> <td style="FONT-FAMILY: arial" valign="bottom"> </td> <td style="FONT-FAMILY: arial" valign="bottom"> </td> <td style="FONT-FAMILY: arial" valign="bottom"> </td> <td style="FONT-FAMILY: arial" valign="bottom"> </td> <td style="FONT-FAMILY: arial" valign="bottom"> </td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: arial" valign="bottom" colspan="2"> U.S. Fleet Debt</td> <td style="FONT-FAMILY: arial" valign="bottom"> </td> <td style="FONT-FAMILY: arial" valign="bottom"> </td> <td style="FONT-FAMILY: arial" valign="bottom" align="right">478.1</td> <td style="FONT-FAMILY: arial" valign="bottom"> </td> <td style="FONT-FAMILY: arial" valign="bottom"> </td> <td style="FONT-FAMILY: arial" valign="bottom" align="right">80.4</td> <td style="FONT-FAMILY: arial" valign="bottom"> </td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: arial" valign="bottom" colspan="2"> International ABS Fleet Financing Facility</td> <td style="FONT-FAMILY: arial" valign="bottom"> </td> <td style="FONT-FAMILY: arial" valign="bottom"> </td> <td style="FONT-FAMILY: arial" valign="bottom" align="right">456.2</td> <td style="FONT-FAMILY: arial" valign="bottom"> </td> <td style="FONT-FAMILY: arial" valign="bottom"> </td> <td style="FONT-FAMILY: arial" valign="bottom" align="right">25.6</td> <td style="FONT-FAMILY: arial" valign="bottom"> </td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: arial" valign="bottom" colspan="2"> Fleet Financing Facility</td> <td style="FONT-FAMILY: arial" valign="bottom"> </td> <td style="FONT-FAMILY: arial" valign="bottom"> </td> <td style="FONT-FAMILY: arial" valign="bottom" align="right">2.0</td> <td style="FONT-FAMILY: arial" valign="bottom"> </td> <td style="FONT-FAMILY: arial" valign="bottom"> </td> <td style="FONT-FAMILY: arial" valign="bottom" align="right">2.0</td> <td style="FONT-FAMILY: arial" valign="bottom"> </td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: arial" valign="bottom" colspan="2"> Brazilian Fleet Financing Facility</td> <td style="FONT-FAMILY: arial" valign="bottom"> </td> <td style="FONT-FAMILY: arial" valign="bottom"> </td> <td style="FONT-FAMILY: arial" valign="bottom" align="right"></td> <td style="FONT-FAMILY: arial" valign="bottom"> </td> <td style="FONT-FAMILY: arial" valign="bottom"> </td> <td style="FONT-FAMILY: arial" valign="bottom" align="right"></td> <td style="FONT-FAMILY: arial" valign="bottom"> </td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: arial" valign="bottom" colspan="2"> Canadian Fleet Financing Facility</td> <td style="FONT-FAMILY: arial" valign="bottom"> </td> <td style="FONT-FAMILY: arial" valign="bottom"> </td> <td style="FONT-FAMILY: arial" valign="bottom" align="right">102.0</td> <td style="FONT-FAMILY: arial" valign="bottom"> </td> <td style="FONT-FAMILY: arial" valign="bottom"> </td> <td style="FONT-FAMILY: arial" valign="bottom" align="right">3.9</td> <td style="FONT-FAMILY: arial" valign="bottom"> </td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: arial" valign="bottom" colspan="2"> Capitalized Leases</td> <td style="FONT-FAMILY: arial" valign="bottom"> </td> <td style="FONT-FAMILY: arial" valign="bottom"> </td> <td style="FONT-FAMILY: arial" valign="bottom" align="right">62.5</td> <td style="FONT-FAMILY: arial" valign="bottom"> </td> <td style="FONT-FAMILY: arial" valign="bottom"> </td> <td style="FONT-FAMILY: arial" valign="bottom" align="right">17.3</td> <td style="FONT-FAMILY: arial" valign="bottom"> </td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: arial" valign="bottom" colspan="2"> Euro Notes</td> <td style="FONT-FAMILY: arial" valign="bottom"> </td> <td style="FONT-FAMILY: arial" valign="bottom"> </td> <td style="FONT-FAMILY: arial" valign="bottom" align="right"></td> <td style="FONT-FAMILY: arial" valign="bottom"> </td> <td style="FONT-FAMILY: arial" valign="bottom"> </td> <td style="FONT-FAMILY: arial" valign="bottom" align="right"></td> <td style="FONT-FAMILY: arial" valign="bottom"> </td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: arial" valign="bottom" colspan="2"> European Credit Facility</td> <td style="FONT-FAMILY: arial" valign="bottom"> </td> <td style="FONT-FAMILY: arial" valign="bottom"> </td> <td style="FONT-FAMILY: arial" valign="bottom" align="right"></td> <td style="FONT-FAMILY: arial" valign="bottom"> </td> <td style="FONT-FAMILY: arial" valign="bottom"> </td> <td style="FONT-FAMILY: arial" valign="bottom" align="right"></td> <td style="FONT-FAMILY: arial" valign="bottom"> </td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: arial" valign="bottom" colspan="2"> </td> <td style="FONT-FAMILY: arial" valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: arial" valign="bottom" align="right" colspan="2"> </td> <td style="FONT-FAMILY: arial" valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: arial" valign="bottom" align="right" colspan="2"> </td> <td style="FONT-FAMILY: arial" valign="bottom"> </td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: arial"> </td> <td style="FONT-FAMILY: arial" valign="bottom"> Total Fleet Debt</td> <td style="FONT-FAMILY: arial" valign="bottom"> </td> <td style="FONT-FAMILY: arial" valign="bottom"> </td> <td style="FONT-FAMILY: arial" valign="bottom" align="right">1,100.8</td> <td style="FONT-FAMILY: arial" valign="bottom"> </td> <td style="FONT-FAMILY: arial" valign="bottom"> </td> <td style="FONT-FAMILY: arial" valign="bottom" align="right">129.2</td> <td style="FONT-FAMILY: arial" valign="bottom"> </td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: arial" valign="bottom" colspan="2"> </td> <td style="FONT-FAMILY: arial" valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: arial" valign="bottom" align="right" colspan="2"> </td> <td style="FONT-FAMILY: arial" valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: arial" valign="bottom" align="right" colspan="2"> </td> <td style="FONT-FAMILY: arial" valign="bottom"> </td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: arial" valign="bottom" colspan="2"> Total</td> <td style="FONT-FAMILY: arial" valign="bottom"> </td> <td style="FONT-FAMILY: arial" valign="bottom" align="right">$</td> <td style="FONT-FAMILY: arial" valign="bottom" align="right">2,692.5</td> <td style="FONT-FAMILY: arial" valign="bottom"> </td> <td style="FONT-FAMILY: arial" valign="bottom" align="right">$</td> <td style="FONT-FAMILY: arial" valign="bottom" align="right">945.1</td> <td style="FONT-FAMILY: arial" valign="bottom"> </td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: arial" valign="bottom" colspan="2"> </td> <td style="FONT-FAMILY: arial" valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: arial" valign="bottom" align="right" colspan="2"> </td> <td style="FONT-FAMILY: arial" valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: arial" valign="bottom" align="right" colspan="2"> </td> <td style="FONT-FAMILY: arial" valign="bottom"> </td></tr></table></div> </div> As of June 30, 2010, the Senior Term Facility had approximately $1.3 million available under the letter of credit facility and the Senior ABL Facility had $6.7 million available under the letter of credit facility sublimit. Our liquidity as of June 30, 2010 was $2,813.5 million, which consisted of $896.8 million of cash and cash equivalents, $815.9 million of unused commitments under our Senior ABL Facility and $1,100.8 million of unused commitments under our fleet financing facilities. Taking into consideration the borrowing base limitations in our Senior ABL Facility and in our Fleet Debt, the amount that we had available for immediate use as of June 30, 2010 under our Senior ABL Facility was $815.9 million and we had $129.2 million of over-enhancement that was available under our Fleet Debt. Accordingly, as of June 30, 2010, we had $1,841.9 million ($896.8 million in cash and cash equivalents, $815.9 million available under our Senior ABL Facility and $129.2 million available under our various Fleet Debt facilities) in liquidity that was available for our immediate use. Future availability of borrowings under these facilities will depend on borrowing base requirements and other factors, many of which are outside our control. Also, substantially all of our revenue earning equipment and certain related assets are owned by special purpose entities, or are subject to liens in favor of our lenders under our various credit facilities. Substantially all our other assets in the United States are also subject to liens in favor of our lenders under our various credit facilities. None of these assets would be available to satisfy the claims of our general creditors if we failed to perform our obligations to such creditors. Some of these special purpose entities are consolidated variable interest entities, of which we are the primary beneficiary, whose sole purpose is to provide commitments to lend in various currencies subject to borrowing bases comprised of rental vehicles and related assets of certain of Hertz International, Ltd.'s subsidiaries. As of June 30, 2010 and December 31, 2009, our International Fleet Funding and Hertz Fleet Limited variable interest entities had total assets primarily comprised of revenue earning equipment of $374.3 million and $367.6 million, respectively, and total liabilities primarily comprised of debt of $485.8 million and $710.3 million, respectively. For further information on the terms of our debt, see Note 3 of the Notes to our audited annual consolidated financial statements included in our Form 10-K under the caption "Item 8Financial Statements and Supplementary Data." Accrued Interest As of June 30, 2010 and December 31, 2009, accrued interest was $115.5 million and $118.9 million, respectively, which is reflected in our condensed consolidated balance sheet in "Accrued liabilities."</td></tr></table> Note 8Debt Our debt consists of the following (in millions of dollars): <!-- User-specified TAGGED TABLE false false false us-types:textBlockItemType textblock Information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 19, 20, 22 -Article 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 129 -Paragraph 2, 4 false 1 2 false UnKnown UnKnown UnKnown false true