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

6 Months Ended

Jun. 30, 2012

Guarantor and Non-Guarantor Condensed Consolidating Financial Statements

Schedule of condensed consolidating balance sheets

CONDENSED CONSOLIDATING BALANCE SHEET
June 30, 2012
(In Thousands of Dollars)

	Parent (The Hertz Corporation)		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations			The Hertz Corporation & Subsidiaries
ASSETS
Cash and cash equivalents	$	265,627	$	3,861	$	316,475	$	—		$	585,963
Restricted cash and cash equivalents		32,079		9,888		133,482		—			175,449
Receivables, less allowance for doubtful accounts		388,307		255,998		803,966		—			1,448,271
Due from Hertz affiliate		870,534		83,376		1,293,207		(2,233,659	)		13,458
Inventories, at lower cost or market		29,570		32,412		39,730		—			101,712
Prepaid expenses and other assets		2,311,880		28,316		118,163		(2,043,622	)		414,737
Revenue earning equipment, net		136,426		1,636,542		10,664,991		—			12,437,959
Property and equipment, net		837,803		179,574		246,892		—			1,264,269
Investment in subsidiaries, net		4,404,533		482,757		—		(4,887,290	)		—
Other intangible assets, net		84,643		2,387,456		71,912		—			2,544,011
Goodwill		100,221		136,445		215,742		—			452,408
Total assets	$	9,461,623	$	5,236,625	$	13,904,560	$	(9,164,571	)	$	19,438,237
LIABILITIES AND EQUITY
Due to Hertz affiliate	$	1,374,459	$	460,000	$	399,200	$	(2,233,659	)	$	—
Accounts payable		125,884		266,647		1,094,555		—			1,487,086
Accrued liabilities		674,751		111,687		275,874		—			1,062,312
Accrued taxes		65,122		153,534		232,876		(248,775	)		202,757
Debt		4,443,062		8,665		7,594,812		—			12,046,539
Public liability and property damage		100,355		17,299		152,986		—			270,640
Deferred taxes on income		—		1,452,066		2,033,675		(1,794,847	)		1,690,894
Total liabilities		6,783,633		2,469,898		11,783,978		(4,277,281	)		16,760,228
Equity:
The Hertz Corporation and Subsidiaries stockholder's equity		2,677,990		2,766,727		2,120,563		(4,887,290	)		2,677,990
Noncontrolling interest		—		—		19		—			19
Total equity		2,677,990		2,766,727		2,120,582		(4,887,290	)		2,678,009
Total liabilities and equity	$	9,461,623	$	5,236,625	$	13,904,560	$	(9,164,571	)	$	19,438,237

CONDENSED CONSOLIDATING BALANCE SHEET
December 31, 2011
(In Thousands of Dollars)

	Parent (The Hertz Corporation)		Guarantor Subsidiaries		Non- Guarantor Subsidiaries			Eliminations			The Hertz Corporation & Subsidiaries
ASSETS
Cash and cash equivalents	$	565,002	$	7,410	$	358,796		$	—		$	931,208
Restricted cash and cash equivalents		44,663		28,130		235,246			—			308,039
Receivables, less allowance for doubtful accounts		297,292		226,143		1,092,947			—			1,616,382
Due from Hertz affiliate		655,411		78,660		1,181,387			(1,915,458	)		—
Inventories, at lower cost or market		22,440		27,505		34,033			—			83,978
Prepaid expenses and other assets		2,088,579		33,432		136,731			(1,842,608	)		416,134
Revenue earning equipment, net		167,304		1,505,867		8,432,238			—			10,105,409
Property and equipment, net		824,381		178,399		249,074			—			1,251,854
Investment in subsidiaries, net		4,413,289		460,201		—			(4,873,490	)		—
Other intangible assets, net		94,682		2,387,017		80,535			—			2,562,234
Goodwill		100,221		74,738		217,135			—			392,094
Total assets	$	9,273,264	$	5,007,502	$	12,018,122		$	(8,631,556	)	$	17,667,332
LIABILITIES AND EQUITY
Due to Hertz affiliate	$	1,251,347	$	268,026	$	396,497		$	(1,915,458	)	$	412
Accounts payable		188,695		164,989		543,805			—			897,489
Accrued liabilities		607,673		212,361		306,304			—			1,126,338
Accrued taxes		54,559		146,682		(26,385	)		(11,872	)		162,984
Debt		4,434,274		4,237		6,469,338			—			10,907,849
Public liability and property damage		107,881		16,618		157,035			—			281,534
Deferred taxes on income		—		1,445,856		2,046,752			(1,830,736	)		1,661,872
Total liabilities		6,644,429		2,258,769		9,893,346			(3,758,066	)		15,038,478
Equity:
The Hertz Corporation and Subsidiaries stockholder's equity		2,628,835		2,748,733		2,124,757			(4,873,490	)		2,628,835
Noncontrolling interest		—		—		19			—			19
Total equity		2,628,835		2,748,733		2,124,776			(4,873,490	)		2,628,854
Total liabilities and equity	$	9,273,264	$	5,007,502	$	12,018,122		$	(8,631,556	)	$	17,667,332

Schedule of condensed consolidating statement of operations

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
For the Three Months Ended June 30, 2012
(In Thousands of Dollars)

	Parent (The Hertz Corporation)			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			The Hertz Corporation & Subsidiaries
Total revenues	$	1,074,941		$	292,007		$	1,434,183		$	(575,983	)	$	2,225,148
Expenses:
Direct operating		609,405			176,879			402,649			—			1,188,933
Depreciation of revenue earning equipment and lease charges		560,559			59,374			475,800			(575,983	)		519,750
Selling, general and administrative		94,436			32,088			80,026			—			206,550
Interest expense		55,942			11,258			72,087			—			139,287
Interest income		(3	)		(229	)		(236	)		—			(468	)
Other (income) expense, net		—			(4	)		(550	)		—			(554	)
Total expenses		1,320,339			279,366			1,029,776			(575,983	)		2,053,498
Income (loss) before income taxes and equity in earnings (losses) of subsidiaries		(245,398	)		12,641			404,407			—			171,650
(Provision) benefit for taxes on income		90,706			(5,001	)		(156,389	)		—			(70,684	)
Equity in earnings (losses) of subsidiaries (net of tax)		255,658			(33,812	)		—			(221,846	)		—
Net income (loss)	$	100,966		$	(26,172	)	$	248,018		$	(221,846	)	$	100,966

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
For the Six months ended June 30, 2012
(In Thousands of Dollars)

	Parent (The Hertz Corporation)			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			The Hertz Corporation & Subsidiaries
Total revenues	$	2,042,908		$	555,532		$	2,721,674		$	(1,134,041	)	$	4,186,073
Expenses:
Direct operating		1,181,256			343,641			779,183			—			2,304,080
Depreciation of revenue earning equipment and lease charges		1,099,276			116,160			952,472			(1,134,041	)		1,033,867
Selling, general and administrative		198,559			58,521			157,206			—			414,286
Interest expense		119,579			23,177			146,020			—			288,776
Interest income		(116	)		(386	)		(1,058	)		—			(1,560	)
Other (income) expense, net		—			(9	)		(1,002	)		—			(1,011	)
Total expenses		2,598,554			541,104			2,032,821			(1,134,041	)		4,038,438
Income (loss) before income taxes and equity in earnings (losses) of subsidiaries		(555,646	)		14,428			688,853			—			147,635
(Provision) benefit for taxes on income		201,949			(5,399	)		(291,461	)		—			(94,911	)
Equity in earnings (losses) of subsidiaries (net of tax)		406,421			(22,556	)		—			(383,865	)		—
Net income (loss)	$	52,724		$	(13,527	)	$	397,392		$	(383,865	)	$	52,724

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
For the Three Months Ended June 30, 2011
(In Thousands of Dollars)

	Parent (The Hertz Corporation)			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			The Hertz Corporation & Subsidiaries
Total revenues	$	1,022,145		$	237,359		$	1,417,951		$	(605,162	)	$	2,072,293
Expenses:
Direct operating		576,641			172,021			438,644			—			1,187,306
Depreciation of revenue earning equipment and lease charges		511,166			54,776			458,889			(605,162	)		419,669
Selling, general and administrative		91,582			23,169			80,747			—			195,498
Interest expense		70,558			8,358			74,673			—			153,589
Interest income		(51	)		(7	)		(1,488	)		—			(1,546	)
Other (income) expense, net		10,655			—			146			—			10,801
Total expenses		1,260,551			258,317			1,051,611			(605,162	)		1,965,317
Income (loss) before income taxes, noncontrolling interest and equity in earnings (losses) of subsidiaries		(238,406	)		(20,958	)		366,340			—			106,976
(Provision) benefit for taxes on income (loss)		75,968			6,619			(122,380	)		—			(39,793	)
Equity in earnings (losses) of subsidiaries (net of tax)		224,534			(2,347	)		—			(222,187	)		—
Net income (loss)		62,096			(16,686	)		243,960			(222,187	)		67,183
Less: Net income attributable to noncontrolling interest		—			—			(5,087	)		—			(5,087	)
Net income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder	$	62,096		$	(16,686	)	$	238,873		$	(222,187	)	$	62,096

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
For the Six months ended June 30, 2011
(In Thousands of Dollars)

	Parent (The Hertz Corporation)			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			The Hertz Corporation & Subsidiaries
Total revenues	$	1,952,498		$	456,227		$	2,625,578		$	(1,182,007	)	$	3,852,296
Expenses:
Direct operating		1,132,819			312,876			815,276			—			2,260,971
Depreciation of revenue earning equipment and lease charges		976,851			113,352			947,562			(1,182,007	)		855,758
Selling, general and administrative		179,763			42,939			154,986			—			377,688
Interest expense		175,042			15,514			147,794			—			338,350
Interest income		(410	)		(8	)		(2,984	)					(3,402	)
Other (income) expense, net		62,396			(9	)		290			—			62,677
Total expenses		2,526,461			484,664			2,062,924			(1,182,007	)		3,892,042
Income (loss) before income taxes, noncontrolling interest and equity in earnings (losses) of subsidiaries		(573,963	)		(28,437	)		562,654			—			(39,746	)
(Provision) benefit for taxes on income (loss)		182,692			9,018			(204,075	)		—			(12,365	)
Equity in earnings (losses) of subsidiaries (net of tax)		330,400			(3,304	)		—			(327,096	)		—
Net income (loss)		(60,871	)		(22,723	)		358,579			(327,096	)		(52,111	)
Less: Net income attributable to noncontrolling interest		—			—			(8,760	)		—			(8,760	)
Net income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder	$	(60,871	)	$	(22,723	)	$	349,819		$	(327,096	)	$	(60,871	)

Schedule of condensed consolidating statement of cash flows

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
For the Six months ended June 30, 2012
(In Thousands of Dollars)

	Parent (The Hertz Corporation)			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			The Hertz Corporation & Subsidiaries
Net cash provided by (used in) operating activities	$	(219,040	)	$	335,017		$	1,396,401		$	(341,480	)	$	1,170,898
Cash flows from investing activities:
Net change in restricted cash and cash equivalents		12,583			18,243			99,311			—			130,137
Revenue earning equipment expenditures		(73,750	)		(334,132	)		(5,291,010	)		—			(5,698,892	)
Proceeds from disposal of revenue earning equipment		54,448			162,609			3,391,266			—			3,608,322
Property and equipment expenditures		(80,164	)		(25,020	)		(31,984	)		—			(137,168	)
Proceeds from disposal of property and equipment		44,264			4,261			7,896			—			56,421
Capital contributions to subsidiaries		(2,215,911	)		—			—			2,215,911			—
Return of capital from subsidiaries		2,220,603			—			—			(2,220,603	)		—
Loan to Parent From Non-Guarantor		—			—			(18,259	)		18,259			—
Acquisitions, net of cash acquired		—			(161,844	)		—			—			(161,844	)
Other investing activities		—			—			(625	)		—			(625	)
Net cash used in investing activities		(37,927	)		(335,883	)		(1,843,405	)		13,567			(2,203,648	)
Cash flows from financing activities:
Proceeds from issuance of long-term debt		260,000			—			10,529			—			270,529
Payment of long-term debt		(637,326	)		(9	)		(5,748	)		—			(643,083	)
Short-term borrowings:
Proceeds		—			—			246,664			—			246,664
Payments		(26,775	)		—			(629,456	)		—			(656,231	)
Proceeds (payments) under the revolving lines of credit, net		410,000			(1,127	)		1,134,897			—			1,543,770
Capital contributions received from parent		—			—			2,215,911			(2,215,911	)		—
Loan to Parent From Non-Guarantor		18,259			—			—			(18,259	)		—
Payment of dividends and return of capital		—			—			(2,562,083	)		2,562,083			—
Dividends paid to Parent		(12,500	)		—			—			—			(12,500	)
Proceeds from employee stock purchase plan		1,988			—			—			—			1,988
Loan with Hertz Global Holdings, Inc.		(13,870	)		—			—			—			(13,870	)
Purchase of noncontrolling interest		(38,000	)		—			—			—			(38,000	)
Payment of financing costs		(4,184	)		(1,547	)		(1,218	)		—			(6,949	)
Net cash provided by (used in) financing activities		(42,408	)		(2,683	)		409,496			327,913			692,318
Effect of foreign exchange rate changes on cash and cash equivalents		—			—			(4,813	)		—			(4,813	)
Net decrease in cash and cash equivalents during the period		(299,375	)		(3,549	)		(42,321	)		—			(345,245	)
Cash and cash equivalents at beginning of period		565,002			7,410			358,796			—			931,208
Cash and cash equivalents at end of period	$	265,627		$	3,861		$	316,475		$	—		$	585,963

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
For the Six months ended June 30, 2011
(In Thousands of Dollars)

	Parent (The Hertz Corporation)			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			The Hertz Corporation & Subsidiaries
Net cash provided by (used in) operating activities	$	388,425		$	132,542		$	452,580		$	(273,946	)	$	699,601
Cash flows from investing activities:
Net change in restricted cash and cash equivalents		(1,819	)		11,014			(69,428	)		—			(60,233	)
Revenue earning equipment expenditures		(103,214	)		(189,323	)		(5,174,319	)		—			(5,466,856	)
Proceeds from disposal of revenue earning equipment		66,993			56,343			3,365,554			—			3,488,890
Property and equipment expenditures		(82,334	)		(11,537	)		(31,499	)		—			(125,370	)
Proceeds from disposal of property and equipment		11,793			2,803			13,792			—			28,388
Capital contributions to subsidiaries		(1,801,000	)		—			—			1,801,000			—
Return of capital from subsidiaries		1,251,054			—			—			(1,251,054	)		—
Acquisitions, net of cash acquired		—			(500	)		(10,476	)		—			(10,976	)
Purchase of short-term investments, net		(32,891	)		—			—			—			(32,891	)
Other investing activities		—			—			1,303			—			1,303
Net cash provided by (used in) investing activities		(691,418	)		(131,200	)		(1,905,073	)		549,946			(2,177,745	)
Cash flows from financing activities:
Proceeds from issuance of long-term debt		2,426,505			—			602,086			—			3,028,591
Payment of long-term debt		(3,585,159	)		(8	)		(46,305	)		—			(3,631,472	)
Short-term borrowings:
Proceeds		—			—			285,803			—			285,803
Payments		(8,596	)		—			(480,621	)		—			(489,217	)
Proceeds (payments) under the revolving lines of credit, net		110,872			(2,095	)		620,078			—			728,855
Distributions to noncontrolling interest		—			—			(10,500	)		—			(10,500	)
Capital contributions received from parent		—			—			1,801,000			(1,801,000	)		—
Payment of dividends and return of capital		(12,450	)		—			(1,525,000	)		1,525,000			(12,450	)
Proceeds from employee stock purchase plan		1,716			—			—			—			1,716
Loan from Hertz Global Holdings, Inc.		182			—			—			—			182
Payment of financing costs		(79,278	)		—			(2,114	)		—			(81,392	)
Net cash provided by (used in) financing activities		(1,146,208	)		(2,103	)		1,244,427			(276,000	)		(179,884	)
Effect of foreign exchange rate changes on cash and cash equivalents		—			—			(31,602	)		—			31,602
Net decrease in cash and cash equivalents during the period		(1,449,201	)		(761	)		(176,464	)		—			(1,626,426	)
Cash and cash equivalents at beginning of period		1,754,378			5,180			614,448			—			2,374,006
Cash and cash equivalents at end of period	$	305,177		$	4,419		$	437,984		$	—		$	747,580

Schedule of condensed consolidating comprehensive income (loss)

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS)
For the Three Months Ended June 30, 2012
(In Thousands of Dollars)

	Parent (The Hertz Corporation)			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			The Hertz Corporation & Subsidiaries
Net income (loss)	$	100,966		$	(26,172	)	$	248,018		$	(221,846	)	$	100,966
Other comprehensive income (net of tax)		(43,687	)		—			(45,666	)		45,666			(43,687	)
Comprehensive income (loss)	$	57,279		$	(26,172	)	$	202,352		$	(176,180	)	$	57,279

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS)
For the Six Months Ended June 30, 2012
(In Thousands of Dollars)

	Parent (The Hertz Corporation)			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			The Hertz Corporation & Subsidiaries
Net income (loss)	$	52,724		$	(13,527	)	$	397,392		$	(383,865	)	$	52,724
Other comprehensive income (net of tax)		(9,643	)		—			(16,404	)		16,404			(9,643	)
Comprehensive income (loss)	$	43,081		$	(13,527	)	$	(380,988	)	$	(367,461	)	$	43,081

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS)
For the Three Months Ended June 30, 2011
(In Thousands of Dollars)

	Parent (The Hertz Corporation)		Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			The Hertz Corporation & Subsidiaries
Net income (loss)	$	62,096	$	(16,686	)	$	243,960		$	(222,187	)	$	67,183
Other comprehensive income, net of tax		29,785		—			30,552			(30,552	)		29,785
Comprehensive income (loss)		91,881		(16,686	)		274,512			(252,739	)		96,968
Less: Comprehensive income attributable to noncontrolling interest		—		—			(5,087	)		—			(5,087	)
Comprehensive income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder	$	91,881	$	(16,686	)	$	269,425		$	(252,739	)	$	91,881

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS)
For the Six Months Ended June 30, 2011
(In Thousands of Dollars)

	Parent (The Hertz Corporation)			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			The Hertz Corporation & Subsidiaries
Net income (loss)	$	(60,871	)	$	(22,723	)	$	358,579		$	(327,096	)	$	(52,111	)
Other comprehensive income, net of tax		62,072			—			73,160			(73,160	)		62,072
Comprehensive income (loss)		1,201			(22,723	)		431,739			(400,256	)		9,961
Less: Comprehensive income attributable to noncontrolling interest		—			—			(8,760	)		—			(8,760	)
Comprehensive income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder	$	1,201		$	(22,723	)	$	422,979		$	(400,256	)	$	1,201