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GUARANTOR AND NON-GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - DOLLAR THRIFTY
 6 Months Ended 12 Months Ended 9 Months Ended 12 Months Ended
Jun. 30, 2013
Dec. 31, 2012
Sep. 30, 2012
Dollar Thrifty Automotive Group Inc
Dec. 31, 2011
Dollar Thrifty Automotive Group Inc
GUARANTOR AND NON-GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS
Guarantor and Non-Guarantor Condensed Consolidating Financial Statements

The following condensed consolidating financial information presents the Condensed Consolidating Balance Sheets as of June 30, 2013 and December 31, 2012 and the Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) for the three and six month periods ended June 30, 2013 and 2012, and Statements of Cash Flows for the six months ended June 30, 2013 and 2012, of (a) The Hertz Corporation, (“the Company” or “the Parent”); (b) the Parent's subsidiaries that guarantee the Parent's indebtedness, or the Guarantor Subsidiaries; (c) the Parent's subsidiaries that do not guarantee the Parent's indebtedness, or the Non-Guarantor Subsidiaries; (d) elimination entries necessary to consolidate the Parent with the Guarantor Subsidiaries and Non-Guarantor Subsidiaries; and of (e) the Company on a consolidated basis.

In February 2013 and March 2013, we added Dollar Thrifty and certain of its subsidiaries as guarantors under certain of our debt instruments and credit facilities. The following condensed consolidating financial statements now reflects the results of this change for all periods presented.

Investments in subsidiaries are accounted for using the equity method for purposes of the consolidating presentation. The principal elimination entries relate to investments in subsidiaries and intercompany balances and transactions. Separate financial statements and other disclosures with respect to the Guarantor Subsidiaries have not been provided, as the Guarantor Subsidiaries are 100% owned by the Parent and all guarantees are full and unconditional and joint and several. Additionally, substantially all of the assets of the Guarantor Subsidiaries are pledged under the Senior Credit Facilities, and consequently will not be available to satisfy the claims of our general creditors.
CONDENSED CONSOLIDATING BALANCE SHEET
June 30, 2013
(In Millions of Dollars)

 
Parent
(The Hertz
Corporation)
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
The Hertz
Corporation &
Subsidiaries
ASSETS
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
87.5

 
$
24.5

 
$
371.0

 
$
—

 
$
483.0

Restricted cash and cash equivalents
33.7

 
17.0

 
342.5

 
—

 
393.2

Receivables, less allowance for doubtful accounts
500.8

 
482.1

 
719.3

 
(46.2
)
 
1,656.0

Due from Hertz affiliate
1,042.7

 
1,842.7

 
3,691.7

 
(6,576.3
)
 
0.8

Inventories, at lower cost or market
30.8

 
39.8

 
57.7

 
—

 
128.3

Prepaid expenses and other assets
2,894.7

 
244.3

 
407.2

 
(2,783.0
)
 
763.2

Revenue earning equipment, net
175.3

 
1,893.0

 
13,637.7

 
—

 
15,706.0

Property and equipment, net
897.6

 
315.1

 
252.9

 
—

 
1,465.6

Investment in subsidiaries, net
6,833.1

 
1,367.9

 
—

 
(8,201.0
)
 
—

Other intangible assets, net
70.2

 
3,848.1

 
50.2

 
—

 
3,968.5

Goodwill
106.2

 
1,035.6

 
224.5

 
—

 
1,366.3

Total assets
$
12,672.6

 
$
11,110.1

 
$
19,754.7

 
$
(17,606.5
)
 
$
25,930.9

LIABILITIES AND EQUITY
 
 
 
 
 
 
 
 

Due to Hertz affiliate
$
2,097.1

 
$
2,498.8

 
$
1,980.4

 
$
(6,576.3
)
 
$
—

Accounts payable
165.2

 
267.9

 
1,051.4

 
—

 
1,484.5

Accrued liabilities
642.7

 
242.2

 
343.6

 
(46.2
)
 
1,182.3

Accrued taxes
60.3

 
33.9

 
1,335.0

 
(1,245.6
)
 
183.6

Debt
7,042.3

 
68.5

 
10,283.4

 
—

 
17,394.2

Public liability and property damage
93.0

 
58.5

 
176.0

 
—

 
327.5

Deferred taxes on income
—

 
2,232.7

 
2,091.5

 
(1,537.4
)
 
2,786.8

Total liabilities
10,100.6

 
5,402.5

 
17,261.3

 
(9,405.5
)
 
23,358.9

Equity:
 
 
 
 
 
 
 
 

The Hertz Corporation and Subsidiaries stockholder's equity
2,572.0

 
5,707.6

 
2,493.4

 
(8,201.0
)
 
2,572.0

Noncontrolling interest
—

 
—

 
—

 
—

 
—

Total equity
2,572.0

 
5,707.6

 
2,493.4

 
(8,201.0
)
 
2,572.0

Total liabilities and equity
$
12,672.6

 
$
11,110.1

 
$
19,754.7

 
$
(17,606.5
)
 
$
25,930.9



CONDENSED CONSOLIDATING BALANCE SHEET
December 31, 2012
(In Millions of Dollars)
 
Parent
(The Hertz
Corporation)
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
The Hertz
Corporation &
Subsidiaries
ASSETS
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
24.6

 
$
6.5

 
$
502.1

 
$
—

 
$
533.2

Restricted cash and cash equivalents
32.7

 
17.1

 
521.8

 
—

 
571.6

Receivables, less allowance for doubtful accounts
544.5

 
444.0

 
924.7

 
(26.6
)
 
1,886.6

Due from Hertz affiliate
1,048.0

 
2,023.5

 
3,491.7

 
(6,550.4
)
 
12.8

Inventories, at lower cost or market
24.4

 
41.2

 
40.1

 
—

 
105.7

Prepaid expenses and other assets
2,570.5

 
277.8

 
173.3

 
(2,560.1
)
 
461.5

Revenue earning equipment, net
104.2

 
1,678.5

 
11,125.6

 
—

 
12,908.3

Property and equipment, net
865.7

 
321.9

 
248.8

 
—

 
1,436.4

Investment in subsidiaries, net
6,964.9

 
1,260.9

 
—

 
(8,225.8
)
 
—

Other intangible assets, net
74.6

 
3,893.3

 
64.2

 
—

 
4,032.1

Goodwill
106.2

 
1,018.9

 
216.8

 
—

 
1,341.9

Total assets
$
12,360.3

 
$
10,983.6

 
$
17,309.1

 
$
(17,362.9
)
 
$
23,290.1

LIABILITIES AND EQUITY
 
 
 
 
 
 
 
 

Due to Hertz affiliate
$
2,254.2

 
$
2,421.6

 
$
1,874.6

 
$
(6,550.4
)
 
$
—

Accounts payable
239.2

 
193.9

 
566.0

 
—

 
999.1

Accrued liabilities
605.7

 
45.0

 
554.3

 
(26.6
)
 
1,178.4

Accrued taxes
54.4

 
29.1

 
1,049.3

 
(965.5
)
 
167.3

Debt
6,190.0

 
67.7

 
8,756.8

 
—

 
15,014.5

Public liability and property damage
99.3

 
52.8

 
180.1

 
—

 
332.2

Deferred taxes on income
—

 
2,205.6

 
2,070.1

 
(1,594.6
)
 
2,681.1

Total liabilities
9,442.8

 
5,015.7

 
15,051.2

 
(9,137.1
)
 
20,372.6

Equity:
 
 
 
 
 
 
 
 

The Hertz Corporation and Subsidiaries stockholder's equity
2,917.5

 
5,967.9

 
2,257.9

 
(8,225.8
)
 
2,917.5

Noncontrolling interest
—

 
—

 
—

 
—

 
—

Total equity
2,917.5

 
5,967.9

 
2,257.9

 
(8,225.8
)
 
2,917.5

Total liabilities and equity
$
12,360.3

 
$
10,983.6

 
$
17,309.1

 
$
(17,362.9
)
 
$
23,290.1



CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
For the Three Months Ended June 30, 2013
(In Millions of Dollars)
 
Parent
(The Hertz
Corporation)
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
The Hertz
Corporation &
Subsidiaries
Total revenues
$
1,147.0

 
$
662.8

 
$
1,617.5

 
$
(712.7
)
 
$
2,714.6

Expenses:
 
 
 
 
 
 
 
 

Direct operating
618.8

 
357.1

 
430.3

 
(0.3
)
 
1,405.9

Depreciation of revenue earning equipment and lease charges
608.0

 
168.9

 
576.4

 
(712.2
)
 
641.1

Selling, general and administrative
122.3

 
64.7

 
88.0

 
(0.2
)
 
274.8

Interest expense
88.0

 
8.5

 
73.7

 
—

 
170.2

Interest income
—

 
(1.6
)
 
(0.4
)
 
—

 
(2.0
)
Other (income) expense, net
14.5

 
(2.2
)
 
(13.4
)
 
—

 
(1.1
)
Total expenses
1,451.6

 
595.4

 
1,154.6

 
(712.7
)
 
2,488.9

Income (loss) before income taxes and equity in earnings (losses) of subsidiaries
(304.6
)
 
67.4

 
462.9

 
—

 
225.7

(Provision) benefit for taxes on income
109.3

 
(25.2
)
 
(179.9
)
 
—

 
(95.8
)
Equity in earnings (losses) of subsidiaries (net of tax)
325.2

 
56.8

 
—

 
(382.0
)
 
—

Net income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder
$
129.9

 
$
99.0

 
$
283.0

 
$
(382.0
)
 
$
129.9


CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 2013
(In Millions of Dollars)
 
Parent
(The Hertz
Corporation)
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
The Hertz
Corporation &
Subsidiaries
Total revenues
$
2,201.6

 
$
1,284.9

 
$
3,120.6

 
$
(1,455.9
)
 
$
5,151.2

Expenses:
 
 
 
 
 
 
 
 

Direct operating
1,231.7

 
710.0

 
815.9

 
(0.5
)
 
2,757.1

Depreciation of revenue earning equipment and lease charges
1,269.4

 
321.3

 
1,092.6

 
(1,455.2
)
 
1,228.1

Selling, general and administrative
229.5

 
124.4

 
172.6

 
(0.2
)
 
526.3

Interest expense
169.1

 
18.8

 
145.6

 
—

 
333.5

Interest income
—

 
(3.1
)
 
(0.7
)
 
—

 
(3.8
)
Other (income) expense, net
14.3

 
(2.2
)
 
(13.8
)
 
—

 
(1.7
)
Total expenses
2,914.0

 
1,169.2

 
2,212.2

 
(1,455.9
)
 
4,839.5

Income (loss) before income taxes and equity in earnings (losses) of subsidiaries
(712.4
)
 
115.7

 
908.4

 
—

 
311.7

(Provision) benefit for taxes on income
257.5

 
(43.1
)
 
(369.7
)
 
—

 
(155.3
)
Equity in earnings (losses) of subsidiaries (net of tax)
611.3

 
111.6

 
—

 
(722.9
)
 
—

Net income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder
$
156.4

 
$
184.2

 
$
538.7

 
$
(722.9
)
 
$
156.4




CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
For the Three Months Ended June 30, 2012
(In Millions of Dollars)
 
Parent
(The Hertz
Corporation)
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
The Hertz
Corporation &
Subsidiaries
Total revenues
$
1,074.9

 
$
233.1

 
$
1,493.1

 
$
(576.0
)
 
$
2,225.1

Expenses:
 
 
 
 
 
 
 
 
 
Direct operating
609.4

 
141.1

 
438.4

 
—

 
1,188.9

Depreciation of revenue earning equipment and lease charges
560.6

 
48.0

 
487.2

 
(576.0
)
 
519.8

Selling, general and administrative
94.4

 
31.4

 
80.8

 
—

 
206.6

Interest expense
56.0

 
9.1

 
74.2

 
—

 
139.3

Interest income
—

 
(0.2
)
 
(0.3
)
 
—

 
(0.5
)
Other (income) expense, net
—

 
—

 
(0.6
)
 
—

 
(0.6
)
Total expenses
1,320.4

 
229.4

 
1,079.7

 
(576.0
)
 
2,053.5

Income (loss) before income taxes noncontrolling interest and equity in earnings (losses) of subsidiaries
(245.5
)
 
3.7

 
413.4

 
—

 
171.6

(Provision) benefit for taxes on income
90.7

 
(1.3
)
 
(160.1
)
 
—

 
(70.7
)
Equity in earnings (losses) of subsidiaries (net of tax)
255.7

 
(33.8
)
 
—

 
(221.9
)
 
—

Net income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder
$
100.9

 
$
(31.4
)
 
$
253.3

 
$
(221.9
)
 
$
100.9


CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 2012
(In Millions of Dollars)
 
Parent
(The Hertz
Corporation)
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
The Hertz
Corporation &
Subsidiaries
Total revenues
$
2,042.9

 
$
442.9

 
$
2,834.3

 
$
(1,134.0
)
 
$
4,186.1

Expenses:
 
 
 
 
 
 
 
 
 
Direct operating
1,181.2

 
274.4

 
847.5

 
—

 
2,303.1

Depreciation of revenue earning equipment and lease charges
1,099.3

 
92.4

 
977.2

 
(1,134.0
)
 
1,034.9

Selling, general and administrative
198.6

 
56.9

 
158.8

 
—

 
414.3

Interest expense
119.6

 
19.0

 
150.2

 
—

 
288.8

Interest income
(0.1
)
 
(0.4
)
 
(1.1
)
 
—

 
(1.6
)
Other (income) expense, net
—

 
—

 
(1.0
)
 
—

 
(1.0
)
Total expenses
2,598.6

 
442.3

 
2,131.6

 
(1,134.0
)
 
4,038.5

Income (loss) before income taxes noncontrolling interest and equity in earnings (losses) of subsidiaries
(555.7
)
 
0.6

 
702.7

 
—

 
147.6

(Provision) benefit for taxes on income
201.9

 
(0.6
)
 
(296.2
)
 
—

 
(94.9
)
Equity in earnings (losses) of subsidiaries (net of tax)
406.5

 
(22.6
)
 
—

 
(383.9
)
 
—

Net income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder
$
52.7

 
$
(22.6
)
 
$
406.5

 
$
(383.9
)
 
$
52.7


CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS)
For the Three Months Ended June 30, 2013
(In Millions of Dollars)
 
Parent
(The Hertz
Corporation)
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
The Hertz
Corporation &
Subsidiaries
Net income (loss)
$
129.9

 
$
99.0

 
$
283.0

 
$
(382.0
)
 
$
129.9

Other comprehensive income (loss), net of tax
(22.2
)
 
(3.2
)
 
(24.4
)
 
27.6

 
(22.2
)
Comprehensive income (loss)
$
107.7

 
$
95.8

 
$
258.6

 
$
(354.4
)
 
$
107.7


CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS)
For the Six Months Ended June 30, 2013
(In Millions of Dollars)
 
Parent
(The Hertz
Corporation)
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
The Hertz
Corporation &
Subsidiaries
Net income (loss)
$
156.4

 
$
184.2

 
$
538.7

 
$
(722.9
)
 
$
156.4

Other comprehensive income, net of tax
(46.5
)
 
(0.4
)
 
(51.3
)
 
51.8

 
(46.4
)
Comprehensive income (loss)
109.9

 
183.8

 
487.4

 
(671.1
)
 
110.0


CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS)
For the Three Months Ended June 30, 2012
(In Millions of Dollars)
 
Parent
(The Hertz
Corporation)
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
The Hertz
Corporation &
Subsidiaries
Net income (loss)
$
100.9

 
$
(31.4
)
 
$
253.3

 
$
(221.9
)
 
$
100.9

Other comprehensive income, net of tax
(42.0
)
 
—

 
(45.6
)
 
45.6

 
(42.0
)
Comprehensive income (loss)
58.9

 
(31.4
)
 
207.7

 
(176.3
)
 
58.9


CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS)
For the Six Months Ended June 30, 2012
(In Millions of Dollars)
 
Parent
(The Hertz
Corporation)
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
The Hertz
Corporation &
Subsidiaries
Net income (loss)
$
52.7

 
$
(22.6
)
 
$
406.5

 
$
(383.9
)
 
$
52.7

Other comprehensive income, net of tax
(9.6
)
 
—

 
(16.4
)
 
16.4

 
(9.6
)
Comprehensive income (loss)
43.1

 
(22.6
)
 
390.1

 
(367.5
)
 
43.1



CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
For the Six Months Ended June 30, 2013
(In Millions of Dollars)

 
Parent
(The Hertz
Corporation)
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
The Hertz
Corporation &
Subsidiaries
Net cash provided by (used in) operating activities
$
(365.7
)
 
$
425.1

 
$
1,811.9

 
$
(405.3
)
 
$
1,466.0

Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
Net change in restricted cash and cash equivalents
(1.0
)
 
0.2

 
176.2

 
—

 
175.4

Revenue earning equipment expenditures
(87.9
)
 
(347.7
)
 
(6,389.9
)
 
—

 
(6,825.5
)
Proceeds from disposal of revenue earning equipment
47.7

 
16.9

 
3,678.2

 
—

 
3,742.8

Property and equipment expenditures
(99.1
)
 
(18.0
)
 
(51.0
)
 
—

 
(168.1
)
Proceeds from disposal of property and equipment
24.6

 
5.5

 
12.4

 
—

 
42.5

Capital contributions to subsidiaries
(485.7
)
 
—

 
—

 
485.7

 
—

Return of capital from subsidiaries
651.0

 
—

 
—

 
(651.0
)
 
—

Loan to Parent/Guarantor from Non-Guarantor
—

 
—

 
57.0

 
(57.0
)
 
—

Acquisitions, net of cash acquired
—

 
(2.8
)
 
(226.4
)
 
—

 
(229.2
)
Proceeds from disposal of business
—

 
—

 
—

 
—

 
—

Other investing activities
—

 
—

 
(2.0
)
 
—

 
(2.0
)
Net cash provided by (used in) investing activities
49.6

 
(345.9
)
 
(2,745.5
)
 
(222.3
)
 
(3,264.1
)
Cash flows from financing activities:
 
 
 
 
 
 
 
 


Proceeds from issuance of long-term debt
250.0

 
—

 
954.4

 
—

 
1,204.4

Payment of long-term debt
(22.8
)
 
—

 
(297.9
)
 
—

 
(320.7
)
Short-term borrowings:
 
 
 
 
 
 
 
 

Proceeds
—

 
—

 
332.0

 
—

 
332.0

Payments
—

 
—

 
(435.9
)
 
—

 
(435.9
)
Proceeds under the revolving lines of credit
1,360.0

 
1.6

 
2,318.5

 
—

 
3,680.1

Payments under the revolving lines of credit
(735.0
)
 
(5.0
)
 
(1,477.9
)
 
—

 
(2,217.9
)
Capital contributions received from parent
—

 
—

 
485.7

 
(485.7
)
 
—

Loan to Parent/Guarantor from Non-Guarantor
—

 
(57.0
)
 
—

 
57.0

 
—

Payment of dividends and return of capital
—

 
—

 
(1,056.3
)
 
1,056.3

 
—

Dividends paid to Parent
(479.7
)
 
—

 
—

 
—

 
(479.7
)
Proceeds from employee stock purchase plan
2.4

 
—

 
—

 
—

 
2.4

Loan with Hertz Global Holdings, Inc.
12.0

 
—

 
—

 
—

 
12.0

Payment of financing costs
(7.9
)
 
(0.8
)
 
(11.9
)
 
—

 
(20.6
)
Net cash provided by (used in) financing activities
379.0

 
(61.2
)
 
810.7

 
627.6

 
1,756.1

Effect of foreign exchange rate changes on cash and cash equivalents
—

 
—

 
(8.2
)
 
—

 
(8.2
)
Net change in cash and cash equivalents during the period
62.9

 
18.0

 
(131.1
)
 
—

 
(50.2
)
Cash and cash equivalents at beginning of period
24.6

 
6.5

 
502.1

 
—

 
533.2

Cash and cash equivalents at end of period
$
87.5

 
$
24.5

 
$
371.0

 
$
—

 
$
483.0



CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
For the Six Months Ended June 30, 2012
(In Millions of Dollars)

 
Parent
(The Hertz
Corporation)
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
The Hertz
Corporation &
Subsidiaries
Net cash provided by (used in) operating activities
$
(219.0
)
 
$
334.2

 
$
1,409.3

 
$
(341.5
)
 
$
1,183.0

Cash flows from investing activities:
 
 
 
 
 
 
 
 


Net change in restricted cash and cash equivalents
12.6

 
18.2

 
99.3

 
—

 
130.1

Revenue earning equipment expenditures
(73.8
)
 
(334.1
)
 
(5,303.1
)
 
—

 
(5,711.0
)
Proceeds from disposal of revenue earning equipment
54.4

 
162.6

 
3,391.3

 
—

 
3,608.3

Property and equipment expenditures
(80.2
)
 
(24.2
)
 
(32.8
)
 
—

 
(137.2
)
Proceeds from disposal of property and equipment
44.3

 
4.2

 
7.9

 
—

 
56.4

Capital contributions to subsidiaries
(2,215.9
)
 
—

 
—

 
2,215.9

 
—

Return of capital from subsidiaries
2,220.6

 
—

 
—

 
(2,220.6
)
 
—

Acquisitions, net of cash acquired
—

 
(161.8
)
 
—

 
—

 
(161.8
)
Loan to Parent from Non-Guarantor
—

 
—

 
(18.3
)
 
18.3

 
—

Other investing activities
—

 
—

 
(0.6
)
 
—

 
(0.6
)
Net cash provided by (used in) investing activities
(38.0
)
 
(335.1
)
 
(1,856.3
)
 
13.6

 
(2,215.8
)
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
Proceeds from issuance of long-term debt
260.0

 
—

 
10.5

 
—

 
270.5

Payment of long-term debt
(637.3
)
 
—

 
(5.8
)
 
—

 
(643.1
)
Short-term borrowings:
 
 
 
 
 
 
 
 

Proceeds
—

 
—

 
246.7

 
—

 
246.7

Payments
(26.8
)
 
—

 
(629.4
)
 
—

 
(656.2
)
Proceeds under the revolving lines of credit
1,360.0

 
1.9

 
2,173.6

 
—

 
3,535.5

Payments under the revolving lines of credit
(950.0
)
 
(2.9
)
 
(1,038.8
)
 
—

 
(1,991.7
)
Purchase of noncontrolling interest
(38.0
)
 
—

 
—

 
—

 
(38.0
)
Capital contributions received from parent
—

 
—

 
2,215.9

 
(2,215.9
)
 
—

Payment of dividends and return of capital
(12.5
)
 
—

 
(2,562.1
)
 
2,562.1

 
(12.5
)
Repayment of Loan to Parent from Non-Guarantor
18.3

 
—

 
—

 
(18.3
)
 
—

Proceeds from employee stock purchase plan
2.0

 
—

 
—

 
—

 
2.0

Loan from Hertz Global Holdings, Inc.
(13.9
)
 
—

 
—

 
—

 
(13.9
)
Payment of financing costs
(4.2
)
 
(1.5
)
 
(1.2
)
 
—

 
(6.9
)
Net cash provided by (used in) financing activities
(42.4
)
 
(2.5
)
 
409.4

 
327.9

 
692.4

Effect of foreign exchange rate changes on cash and cash equivalents
—

 
—

 
(4.8
)
 
—

 
(4.8
)
Net decrease in cash and cash equivalents during the period
(299.4
)
 
(3.4
)
 
(42.4
)
 
—

 
(345.2
)
Cash and cash equivalents at beginning of period
565.0

 
7.4

 
358.8

 
—

 
931.2

Cash and cash equivalents at end of period
$
265.6

 
$
4.0

 
$
316.4

 
$
—

 
$
586.0
Guarantor and Non-Guarantor Condensed Consolidating Financial Statements

The following condensed consolidating financial information presents the Condensed Consolidating Balance Sheets as of December 31, 2012 and 2011 and the Condensed Consolidating Statements of Operations, Comprehensive Income (Loss) and Cash Flows for the years ended December 31, 2012, 2011 and 2010, and Statements of Cash Flows for the years ended December 31, 2012, 2011 and 2010, of (a) The Hertz Corporation, (“the Company” or “the Parent”); (b) the Parent's subsidiaries that guarantee the Parent's indebtedness, or the Guarantor Subsidiaries; (c) the Parent's subsidiaries that do not guarantee the Parent's indebtedness, or the Non-Guarantor Subsidiaries; (d) elimination entries necessary to consolidate the Parent with the Guarantor Subsidiaries and Non-Guarantor Subsidiaries; and of (e) the Company on a consolidated basis. The Guarantor Subsidiaries are consistent with those entities which guaranteed the Company's existing indebtedness as of December 31, 2011 and December 31, 2010, with the exception of the Company's Simply Wheelz subsidiary which was sold in connection with the Advantage divestiture, as more fully described below, and therefore is not included as a guarantor of the debt in this Form 10-K.
On December 12, 2012, pursuant to a consent agreement Hertz Holdings entered into with the Federal Trade Commission in connection with the Dollar Thrifty acquisition, we consummated the Advantage Divestiture. Prior to the Advantage Divestiture, Simply Wheelz, the legal entity associated with Advantage, had been included within these condensed consolidating financial statements as a Guarantor Subsidiary. The following condensed consolidating financial statements which include Simply Wheelz now reflects it as a Non-Guarantor Subsidiary for all periods presented.

Investments in subsidiaries are accounted for using the equity method for purposes of the consolidating presentation. The principal elimination entries relate to investments in subsidiaries and intercompany balances and transactions. Separate financial statements and other disclosures with respect to the Guarantor Subsidiaries have not been provided as management believes the following information is sufficient, as the Guarantor Subsidiaries are 100% owned by the Parent and all guarantees are full and unconditional and joint and several. Additionally, substantially all of the assets of the Guarantor Subsidiaries are pledged under the Senior Credit Facilities, and consequently will not be available to satisfy the claims of our general creditors.
CONDENSED CONSOLIDATING BALANCE SHEET
December 31, 2012
(In Thousands of Dollars)

 
Parent
(The Hertz
Corporation)
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
The Hertz
Corporation &
Subsidiaries
ASSETS
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
24,602

 
$
2,578

 
$
506,055

 
$
—

 
$
533,235

Restricted cash and cash equivalents
32,681

 
14,535

 
524,418

 
—

 
571,634

Receivables, less allowance for doubtful accounts
544,454

 
292,467

 
1,049,675

 
—

 
1,886,596

Due from Hertz affiliate
1,047,986

 
59,181

 
2,199,247

 
(3,293,605
)
 
12,809

Inventories, at lower cost or market
24,422

 
34,101

 
47,205

 
—

 
105,728

Prepaid expenses and other assets
2,570,539

 
183,573

 
203,678

 
(2,496,288
)
 
461,502

Revenue earning equipment, net
104,207

 
1,734,325

 
11,069,804

 
—

 
12,908,336

Property and equipment, net
865,694

 
206,332

 
364,360

 
—

 
1,436,386

Investment in subsidiaries, net
6,964,916

 
506,123

 
—

 
(7,471,039
)
 
—

Other intangible assets, net
74,606

 
2,352,342

 
1,605,163

 
—

 
4,032,111

Goodwill
106,210

 
133,923

 
1,101,739

 
—

 
1,341,872

Total assets
$
12,360,317

 
$
5,519,480

 
$
18,671,344

 
$
(13,260,932
)
 
$
23,290,209

LIABILITIES AND EQUITY
 
 
 
 
 
 
 
 

Due to Hertz affiliate
$
2,254,223

 
$
628,275

 
$
411,107

 
$
(3,293,605
)
 
$
—

Accounts payable
239,247

 
157,742

 
602,072

 
—

 
999,061

Accrued liabilities
605,680

 
84,992

 
487,788

 
—

 
1,178,460

Accrued taxes
54,357

 
11,511

 
1,003,127

 
(901,681
)
 
167,314

Debt
6,190,040

 
49,445

 
8,774,989

 
—

 
15,014,474

Public liability and property damage
99,261

 
10,390

 
222,581

 
—

 
332,232

Deferred taxes on income
—

 
1,776,199

 
2,499,548

 
(1,594,607
)
 
2,681,140

Total liabilities
9,442,808

 
2,718,554

 
14,001,212

 
(5,789,893
)
 
20,372,681

Equity:
 
 
 
 
 
 
 
 

The Hertz Corporation and Subsidiaries stockholder's equity
2,917,509

 
2,800,926

 
4,670,113

 
(7,471,039
)
 
2,917,509

Noncontrolling interest
—

 
—

 
19

 
—

 
19

Total equity
2,917,509

 
2,800,926

 
4,670,132

 
(7,471,039
)
 
2,917,528

Total liabilities and equity
$
12,360,317

 
$
5,519,480

 
$
18,671,344

 
$
(13,260,932
)
 
$
23,290,209



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

 
$
7,385

 
$
358,821

 
$
—

 
$
931,208

Restricted cash and cash equivalents
44,663

 
28,130

 
235,246

 
—

 
308,039

Receivables, less allowance for doubtful accounts
297,292

 
218,754

 
1,100,336

 
—

 
1,616,382

Due from Hertz affiliate
655,411

 
65,972

 
1,194,041

 
(1,915,424
)
 
—

Inventories, at lower cost or market
22,440

 
26,541

 
34,997

 
—

 
83,978

Prepaid expenses and other assets
2,088,579

 
32,974

 
137,189

 
(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

 
170,874

 
256,599

 
—

 
1,251,854

Investment in subsidiaries, net
4,413,289

 
460,201

 
—

 
(4,873,490
)
 
—

Other intangible assets, net
94,682

 
2,363,617

 
103,935

 
—

 
2,562,234

Goodwill
100,221

 
67,228

 
224,645

 
—

 
392,094

Total assets
$
9,273,264

 
$
4,947,543

 
$
12,078,047

 
$
(8,631,522
)
 
$
17,667,332

LIABILITIES AND EQUITY
 
 
 
 
 
 
 
 

Due to Hertz affiliate
$
1,251,347

 
$
266,604

 
$
397,885

 
$
(1,915,424
)
 
$
412

Accounts payable
188,695

 
165,258

 
543,536

 
—

 
897,489

Accrued liabilities
607,673

 
209,263

 
309,402

 
—

 
1,126,338

Accrued taxes
54,559

 
134,186

 
(13,889
)
 
(11,872
)
 
162,984

Debt
4,434,274

 
4,237

 
6,469,338

 
—

 
10,907,849

Public liability and property damage
107,881

 
14,025

 
159,628

 
—

 
281,534

Deferred taxes on income
—

 
1,449,171

 
2,043,437

 
(1,830,736
)
 
1,661,872

Total liabilities
6,644,429

 
2,242,744

 
9,909,337

 
(3,758,032
)
 
15,038,478

Equity:
 
 
 
 
 
 
 
 

The Hertz Corporation and Subsidiaries stockholder's equity
2,628,835

 
2,704,799

 
2,168,691

 
(4,873,490
)
 
2,628,835

Noncontrolling interest
—

 
—

 
19

 
—

 
19

Total equity
2,628,835

 
2,704,799

 
2,168,710

 
(4,873,490
)
 
2,628,854

Total liabilities and equity
$
9,273,264

 
$
4,947,543

 
$
12,078,047

 
$
(8,631,522
)
 
$
17,667,332




CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
For the Year Ended December 31, 2012
(In Thousands of Dollars)
 
Parent
(The Hertz
Corporation)
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
The Hertz
Corporation &
Subsidiaries
Total revenues
$
4,259,049

 
$
975,500

 
$
6,255,039

 
$
(2,468,781
)
 
$
9,020,807

Expenses:
 
 
 
 
 
 
 
 
 
Direct operating
2,384,829

 
553,099

 
1,857,860

 
—

 
4,795,788

Depreciation of revenue earning equipment and lease charges
2,402,032

 
198,322

 
2,016,585

 
(2,468,781
)
 
2,148,158

Selling, general and administrative
448,100

 
123,300

 
374,181

 
—

 
945,581

Interest expense, net of interest income
253,437

 
39,679

 
299,770

 
—

 
592,886

Other (income) expense, net
(10,656
)
 
(19
)
 
46,217

 
—

 
35,542

Total expenses
5,477,742

 
914,381

 
4,594,613

 
(2,468,781
)
 
8,517,955

Income (loss) before income taxes and equity in earnings (losses) of subsidiaries
(1,218,693
)
 
61,119

 
1,660,426

 
—

 
502,852

(Provision) benefit for taxes on income
476,444

 
(44,846
)
 
(658,671
)
 
—

 
(227,073
)
Equity in earnings (losses) of subsidiaries (net of tax)
1,018,028

 
45,922

 
—

 
(1,063,950
)
 
—

Net income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder
$
275,779

 
$
62,195

 
$
1,001,755

 
$
(1,063,950
)
 
$
275,779


CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
For the Year Ended December 31, 2011
(In Thousands of Dollars)

 
Parent
(The Hertz
Corporation)
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
The Hertz
Corporation &
Subsidiaries
Total revenues
$
4,068,310

 
$
809,093

 
$
5,733,827

 
$
(2,312,850
)
 
$
8,298,380

Expenses:
 
 
 
 
 
 
 
 


Direct operating
2,262,371

 
497,053

 
1,806,954

 
—

 
4,566,378

 Depreciation of revenue earning equipment and lease charges
1,996,733

 
180,807

 
2,041,049

 
(2,312,850
)
 
1,905,739

Selling, general and administrative
326,794

 
85,414

 
332,909

 
—

 
745,117

Interest expense, net of interest income
299,099

 
27,226

 
318,378

 
—

 
644,703

Other (income) expense, net
62,396

 
(18
)
 
170

 
—

 
62,548

Total expenses
4,947,393

 
790,482

 
4,499,460

 
(2,312,850
)
 
7,924,485

Income (loss) before income taxes, noncontrolling interest and equity in earnings (losses) of subsidiaries
(879,083
)
 
18,611

 
1,234,367

 
—

 
373,895

(Provision) benefit for taxes on income (loss)
342,469

 
(10,016
)
 
(476,299
)
 
—

 
(143,846
)
Equity in earnings (losses) of subsidiaries (net of tax)
747,103

 
26,215

 
—

 
(773,318
)
 
—

Net income (loss)
210,489

 
34,810

 
758,068

 
(773,318
)
 
230,049

Less: Net income attributable to noncontrolling interest
—

 
—

 
(19,560
)
 
—

 
(19,560
)
Net income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder
$
210,489

 
$
34,810

 
$
738,508

 
$
(773,318
)
 
$
210,489


CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
For the Year Ended December 31, 2010
(In Thousands of Dollars)

 
Parent
(The Hertz
Corporation)
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
The Hertz
Corporation &
Subsidiaries
Total revenues
$
3,961,435

 
$
701,264

 
$
5,350,348

 
$
(2,450,513
)
 
$
7,562,534

 Expenses:
 
 
 
 
 
 
 
 


Direct operating
2,217,864

 
452,674

 
1,612,856

 
—

 
4,283,394

 Depreciation of revenue earning equipment and lease charges
1,938,416

 
200,252

 
2,179,992

 
(2,450,513
)
 
1,868,147

Selling, general and administrative
320,192

 
67,739

 
276,511

 
—

 
664,442

Interest expense, net of interest income
297,276

 
20,068

 
396,880

 
—

 
714,224

Other (income) expense, net
9,915

 
(3
)
 
(9,907
)
 
—

 
5

Total expenses
4,783,663

 
740,730

 
4,456,332

 
(2,450,513
)
 
7,530,212

Income (loss) before income taxes, noncontrolling interest and equity in earnings (losses) of subsidiaries
(822,228
)
 
(39,466
)
 
894,016

 
—

 
32,322

(Provision) benefit for taxes on income (loss)
314,692

 
10,718

 
(358,732
)
 
—

 
(33,322
)
Equity in earnings (losses) of subsidiaries (net of tax)
489,153

 
(5,268
)
 
—

 
(483,885
)
 
—

Net income (loss)
(18,383
)
 
(34,016
)
 
535,284

 
(483,885
)
 
(1,000
)
Less: Net income attributable to noncontrolling interest
—

 
—

 
(17,383
)
 
—

 
(17,383
)
Net income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder
$
(18,383
)
 
$
(34,016
)
 
$
517,901

 
$
(483,885
)
 
$
(18,383
)




CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS)
For the Year Ended December 31, 2012
(In Thousands of Dollars)
 
Parent
(The Hertz
Corporation)
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
The Hertz
Corporation &
Subsidiaries
Net income (loss)
$
275,779

 
$
62,195

 
$
1,001,755

 
$
(1,063,950
)
 
$
275,779

Other comprehensive income, net of tax
1,522

 
121

 
6,816

 
(6,937
)
 
1,522

Comprehensive income (loss)
$
277,301

 
$
62,316

 
$
1,008,571

 
$
(1,070,887
)
 
$
277,301



CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS)
For the Year Ended December 31, 2011
(In Thousands of Dollars)
 
Parent
(The Hertz
Corporation)
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
The Hertz
Corporation &
Subsidiaries
Net income (loss)
$
210,489

 
$
34,810

 
$
758,068

 
$
(773,318
)
 
$
230,049

Other comprehensive income, net of tax
(66,237
)
 
—

 
(34,619
)
 
34,619

 
(66,237
)
Comprehensive income (loss)
144,252

 
34,810

 
723,449

 
(738,699
)
 
163,812

Less: Comprehensive income attributable to noncontrolling interest
—

 
—

 
(19,560
)
 
—

 
(19,560
)
Comprehensive income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder
$
144,252

 
$
34,810

 
$
703,889

 
$
(738,699
)
 
$
144,252


CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS)
For the Year Ended December 31, 2010
(In Thousands of Dollars)
 
Parent
(The Hertz
Corporation)
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
The Hertz
Corporation &
Subsidiaries
Net income (loss)
$
(18,383
)
 
$
(34,016
)
 
$
535,284

 
$
(483,885
)
 
$
(1,000
)
Other comprehensive income, net of tax
41,154

 
—

 
28,427

 
(28,427
)
 
41,154

Comprehensive income (loss)
22,771

 
(34,016
)
 
563,711

 
(512,312
)
 
40,154

Less: Comprehensive income attributable to noncontrolling interest
—

 
—

 
(17,383
)
 
—

 
(17,383
)
Comprehensive income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder
$
22,771

 
$
(34,016
)
 
$
546,328

 
$
(512,312
)
 
$
22,771



CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
For the Year Ended December 31, 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
$
1,677,648

 
$
690,292

 
$
1,155,789

 
$
(775,317
)
 
$
2,748,412

Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
Net change in restricted cash and cash equivalents
11,981

 
13,596

 
(287,182
)
 
—

 
(261,605
)
Revenue earning equipment expenditures
(88,120
)
 
(763,610
)
 
(8,761,509
)
 
—

 
(9,613,239
)
Proceeds from disposal of revenue earning equipment
79,390

 
276,342

 
6,769,364

 
—

 
7,125,096

Property and equipment expenditures
(173,053
)
 
(32,022
)
 
(107,711
)
 
—

 
(312,786
)
Proceeds from disposal of property and equipment
67,370

 
11,839

 
58,485

 
—

 
137,694

Capital contributions to subsidiaries
(4,267,118
)
 
—

 
—

 
4,267,118

 
—

Return of capital from subsidiaries
1,829,256

 
—

 
—

 
(1,829,256
)
 
—

Loan to Parent From Non-Guarantor
—

 
—

 
(385,108
)
 
385,108

 
—

Acquisitions, net of cash acquired
(1,708,520
)
 
(196,648
)
 
—

 
—

 
(1,905,168
)
Proceeds from disposal of business
—

 
—

 
84,497

 
—

 
84,497

Other investing activities
—

 
—

 
(1,779
)
 
—

 
(1,779
)
Net cash provided by (used in) investing activities
(4,248,814
)
 
(690,503
)
 
(2,630,943
)
 
2,822,970

 
(4,747,290
)
Cash flows from financing activities:
 
 
 
 
 
 
 
 


Proceeds from issuance of long-term debt
2,210,000

 
—

 
27,280

 
—

 
2,237,280

Payment of long-term debt
(650,407
)
 
(18
)
 
(301,719
)
 
—

 
(952,144
)
Short-term borrowings:
 
 
 
 
 
 
 
 


Proceeds
—

 
—

 
438,387

 
—

 
438,387

Payments
(26,775
)
 
—

 
(1,253,368
)
 
—

 
(1,280,143
)
Proceeds (payments) under the revolving lines of credit, net
220,000

 
(1,262
)
 
1,054,426

 
—

 
1,273,164

Capital contributions received from parent
—

 
—

 
4,267,118

 
(4,267,118
)
 
—

Loan to Parent From Non-Guarantor
385,108

 
—

 
—

 
(385,108
)
 
—

Payment of dividends and return of capital
—

 
—

 
(2,604,573
)
 
2,604,573

 
—

Dividends paid
(25,000
)
 
—

 
—

 
—

 
(25,000
)
Proceeds from employee stock purchase plan
4,275

 
—

 
—

 
—

 
4,275

Loan with Hertz Global Holdings, Inc.
(13,220
)
 
—

 
—

 
—

 
(13,220
)
Purchase of noncontrolling interest
(38,000
)
 
—

 
—

 
—

 
(38,000
)
Payment of financing costs
(35,215
)
 
(3,316
)
 
(10,902
)
 
—

 
(49,433
)
Net cash provided by (used in) financing activities
2,030,766

 
(4,596
)
 
1,616,649

 
(2,047,653
)
 
1,595,166

Effect of foreign exchange rate changes on cash and cash equivalents
—

 
—

 
5,739

 
—

 
5,739

Net change in cash and cash equivalents during the period
(540,400
)
 
(4,807
)
 
147,234

 
—

 
(397,973
)
Cash and cash equivalents at beginning of period
565,002

 
7,385

 
358,821

 
—

 
931,208

Cash and cash equivalents at end of period
$
24,602

 
$
2,578

 
$
506,055

 
$
—

 
$
533,235

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
For the Year Ended December 31, 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
$
1,000,597

 
$
773,170

 
$
1,038,124

 
$
(553,370
)
 
$
2,258,521

Cash flows from investing activities:
 
 
 
 
 
 
 
 


Net change in restricted cash and cash equivalents
(28,570
)
 
(2,662
)
 
(70,534
)
 
—

 
(101,766
)
Revenue earning equipment expenditures
(142,134
)
 
(670,056
)
 
(8,642,121
)
 
—

 
(9,454,311
)
Proceeds from disposal of revenue earning equipment
163,330

 
170,522

 
7,516,590

 
—

 
7,850,442

Property and equipment expenditures
(189,562
)
 
(29,696
)
 
(62,437
)
 
—

 
(281,695
)
Proceeds from disposal of property and equipment
23,952

 
9,263

 
20,599

 
—

 
53,814

Capital contributions to subsidiaries
(3,549,088
)
 
—

 
—

 
3,549,088

 
—

Return of capital from subsidiaries
2,590,025

 
—

 
—

 
(2,590,025
)
 
—

Loan to Parent from Non-Guarantor
—

 
—

 
(490,273
)
 
490,273

 
—

Acquisitions, net of cash acquired
(214,384
)
 
(2,100
)
 
(10,597
)
 
—

 
(227,081
)
Purchase of short-term investments, net
(32,891
)
 
—

 
—

 
—

 
(32,891
)
Other investing activities
—

 
(13,602
)
 
14,188

 
—

 
586

Net cash provided by (used in) investing activities
(1,379,322
)
 
(538,331
)
 
(1,724,585
)
 
1,449,336

 
(2,192,902
)
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
Proceeds from issuance of long-term debt
2,455,309

 
—

 
607,170

 
—

 
3,062,479

Payment of long-term debt
(3,596,295
)
 
(17
)
 
(52,988
)
 
—

 
(3,649,300
)
Short-term borrowings:
 
 
 
 
 
 
 
 


Proceeds
—

 
—

 
460,890

 
—

 
460,890

Payments
(29,224
)
 
—

 
(1,164,832
)
 
—

 
(1,194,056
)
Proceeds (payments) under the revolving lines of credit, net
(29,128
)
 
(229,778
)
 
201,577

 
—

 
(57,329
)
Distributions to noncontrolling interest
—

 
—

 
(23,100
)
 
—

 
(23,100
)
Capital contributions received from parent
—

 
—

 
3,549,088

 
(3,549,088
)
 
—

Payment of dividends and return of capital
(22,950
)
 
—

 
(3,143,395
)
 
3,143,395

 
(22,950
)
Proceeds from employee stock purchase plan
3,577

 
—

 
—

 
—

 
3,577

Loan to Parent from Non-Guarantor
490,273

 
—

 
—

 
(490,273
)
 
—

Loan from Hertz Global Holdings, Inc.
(984
)
 
—

 
—

 
—

 
(984
)
Payment of financing costs
(81,229
)
 
(2,817
)
 
(7,436
)
 
—

 
(91,482
)
Net cash provided by (used in) financing activities
(810,651
)
 
(232,612
)
 
426,974

 
(895,966
)
 
(1,512,255
)
Effect of foreign exchange rate changes on cash and cash equivalents
—

 
—

 
3,838

 
—

 
3,838

Net decrease in cash and cash equivalents during the period
(1,189,376
)
 
2,227

 
(255,649
)
 
—

 
(1,442,798
)
Cash and cash equivalents at beginning of period
1,754,378

 
5,158

 
614,470

 
—

 
2,374,006

Cash and cash equivalents at end of period
$
565,002

 
$
7,385

 
$
358,821

 
$
—

 
$
931,208


CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
For the Year Ended December 31, 2010
(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
$
337,055

 
$
88,941

 
$
2,193,486

 
$
(381,555
)
 
$
2,237,927

Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
Net change in restricted cash and cash equivalents
19,932

 
(17,514
)
 
158,098

 
—

 
160,516

Revenue earning equipment expenditures
(188,057
)
 
(96,452
)
 
(8,156,363
)
 
—

 
(8,440,872
)
Proceeds from disposal of revenue earning equipment
169,451

 
75,139

 
7,273,856

 
—

 
7,518,446

Property and equipment expenditures
(92,415
)
 
(14,137
)
 
(72,657
)
 
—

 
(179,209
)
Proceeds from disposal of property and equipment
4,311

 
10,416

 
24,178

 
—

 
38,905

Capital contributions to subsidiaries
(1,544,332
)
 
—

 
—

 
1,544,332

 
—

Return of capital from subsidiaries
1,877,095

 
—

 
—

 
(1,877,095
)
 
—

Acquisitions, net of cash acquired
(35
)
 
(43,789
)
 
(3,747
)
 
—

 
(47,571
)
Purchase of short-term investments, net
3,183

 
94

 
214

 
—

 
3,491

Other investing activities
—

 
—

 
2,726

 
—

 
2,726

Net cash provided by (used in) investing activities
249,133

 
(86,243
)
 
(773,695
)
 
(332,763
)
 
(943,568
)
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
Proceeds from issuance of long-term debt
1,209,866

 
—

 
1,425,847

 
—

 
2,635,713

Payment of long-term debt
(73,342
)
 
(68
)
 
(2,880,823
)
 
—

 
(2,954,233
)
Short-term borrowings:
 
 
 
 
 
 
 
 
 
Proceeds
—

 
—

 
490,490

 
—

 
490,490

Payments
(2,615
)
 
—

 
(968,334
)
 
—

 
(970,949
)
Proceeds (payments) under the revolving lines of credit, net
(18,907
)
 
(3,515
)
 
1,048,492

 
—

 
1,026,070

Distributions to noncontrolling interest
—

 
—

 
(18,200
)
 
—

 
(18,200
)
Capital contributions received from parent
—

 
—

 
1,544,332

 
(1,544,332
)
 
—

Payment of dividends and return of capital
(23,000
)
 
—

 
(2,258,650
)
 
2,258,650

 
(23,000
)
Proceeds from employee stock purchase plan
3,208

 
—

 
—

 
—

 
3,208

Loan from Hertz Global Holdings, Inc.
(6,173
)
 
—

 
—

 
—

 
(6,173
)
Excess tax benefits from exercise of stock
(258
)
 
—

 
—

 
—

 
(258
)
Payment of financing costs
(29,111
)
 
—

 
(49,040
)
 
—

 
(78,151
)
Net cash provided by (used in) financing activities
1,059,668

 
(3,583
)
 
(1,665,886
)
 
714,318

 
104,517

Effect of foreign exchange rate changes on cash and cash equivalents
—

 
—

 
(10,337
)
 
—

 
(10,337
)
Net decrease in cash and cash equivalents during the period
1,645,856

 
(885
)
 
(256,432
)
 
—

 
1,388,539

Cash and cash equivalents at beginning of period
108,522

 
6,043

 
870,902

 
—

 
985,467

Cash and cash equivalents at end of period
$
1,754,378

 
$
5,158

 
$
614,470

 
$
—

 
$
2,374,006

16. GUARANTOR AND NON-GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

        In November 2012, the Company was acquired by a wholly owned indirect subsidiary of The Hertz Corporation ("THC"), a wholly owned subsidiary of Hertz Global Holdings, Inc. In February 2013 and March 2013, the Company and certain of its subsidiaries were added as guarantors under certain of THC's debt instruments and credit facilities.

        The following condensed consolidating financial information presents the Condensed Consolidating Balance Sheets as of September 30, 2012 and December 31, 2011, and the Condensed Consolidating Statements of Comprehensive Income for the nine month periods ended September 30, 2012 and 2011, and Condensed Consolidating Statements of Cash Flows for the nine month periods ended September 30, 2012 and 2011, of (a) the Company and those of its subsidiaries that guarantee the indebtedness of THC, or the Guarantor Subsidiaries; (b) the subsidiaries of the Company that do not guarantee THC's indebtedness, or the Non-Guarantor Subsidiaries; (c) elimination entries necessary to consolidate the Guarantor Subsidiaries with the Non-Guarantor Subsidiaries; and of (d) the Company and its subsidiaries on a consolidated basis.

        Investments in subsidiaries are accounted for using the equity method for purposes of the consolidating presentation. The principal elimination entries relate to investments in subsidiaries and intercompany balances and transactions. Separate financial statements and other disclosures with respect to the Guarantor Subsidiaries have not been provided, as the Guarantor Subsidiaries are 100% owned by THC and all guarantees are full and unconditional and joint and several. Additionally, substantially all of the assets of the Guarantor Subsidiaries are pledged under THC's Senior Credit Facilities, and consequently will not be available to satisfy the claims of THC's general creditors.

DOLLAR THRIFTY AUTOMOTIVE GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATING BALANCE SHEET
SEPTEMBER 30, 2012
(In Thousands of Dollars)

 
   Guarantor
Subsidiaries		   Non-
Guarantor
Subsidiaries		   Eliminations   Total
Consolidated		  

ASSETS

                          

Cash and cash equivalents

  
$
402,243		  
$
54,626		  
$
—		  
$
456,869		  

Restricted cash and investments

     6,185     243,959     —     250,144  

Receivables, net

     86,835     69,618     (28,236 )   128,217  

Intercompany

     (92,323 )   147,270     (54,947 )   —  

Prepaid expenses and other assets

     59,770     13,409     (1,199 )   71,980  

Revenue-earning vehicles, net

     24,629     1,850,978     —     1,875,607  

Property and equipment, net

     76,208     1,679     —     77,887  

Investment in subsidiaries

     825,502     —     (825,502 )   —  

Income taxes receivable

     4,364     89     —     4,453  

Software, net

     19,438     —     —     19,438  
                   

Total assets

   $ 1,412,851   $ 2,381,628   $ (909,884 ) $ 2,884,595  
                   

LIABILITIES AND EQUITY

                          

LIABILITIES:

                          

Accounts payable

   $ 44,288   $ 3,484   $ (3 ) $ 47,769  

Accrued liabilities

     161,841     4,157     (29,432 )   136,566  

Income tax payable / (receivable)

     —     —     —     —  

Deferred income taxes

     391,431     1,093     —     392,524  

Vehicle insurance reserves

     71,050     11,308     —     82,358  

Debt and other obligations

     —     1,536,084     (54,947 )   1,481,137  
                   

Total liabilities

     668,610     1,556,126     (84,382 )   2,140,354  
                   

COMMITMENTS AND CONTINGENCIES

                          

EQUITY

    
744,241		    
825,502		    
(825,502
)		  
744,241		  
                   

Total liabilities and equity

   $ 1,412,851   $ 2,381,628   $ (909,884 ) $ 2,884,595  
                   


DOLLAR THRIFTY AUTOMOTIVE GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATING BALANCE SHEET
DECEMBER 31, 2011
(In Thousands of Dollars)

 
   Guarantor
Subsidiaries		   Non-
Guarantor
Subsidiaries		   Eliminations   Total
Consolidated		  

ASSETS

                          

Cash and cash equivalents

  
$
446,239		  
$
62,409		  
$
—		  
$
508,648		  

Restricted cash and investments

     1,355     351,910     —     353,265  

Receivables, net

     86,184     34,294     (25,118 )   95,360  

Intercompany

     (100,436 )   154,999     (54,563 )   —  

Prepaid expenses and other assets

     49,163     20,503     (3,707 )   65,959  

Revenue-earning vehicles, net

     33,057     1,434,778     —     1,467,835  

Property and equipment, net

     82,588     1,690     —     84,278  

Investment in subsidiaries

     581,003     —     (581,003 )   —  

Income taxes receivable

     18,702     84     —     18,786  

Software, net

     21,535     —     —     21,535  
                   

Total assets

   $ 1,219,390   $ 2,060,667   $ (664,391 ) $ 2,615,666  
                   

LIABILITIES AND EQUITY

                          

LIABILITIES:

                          

Accounts payable

   $ 45,827   $ 8,573   $ (23 ) $ 54,377  

Accrued liabilities

     148,820     4,167     (28,802 )   124,185  

Income tax payable / (receivable)

     —     —     —     —  

Deferred income taxes

     341,408     1,554     —     342,962  

Vehicle insurance reserves

     75,663     10,852     —     86,515  

Debt and other obligations

     —     1,454,518     (54,563 )   1,399,955  
                   

Total liabilities

     611,718     1,479,664     (83,388 )   2,007,994  
                   

COMMITMENTS AND CONTINGENCIES

                          

EQUITY:

    
607,672		    
581,003		    
(581,003
)		  
607,672		  
                   

Total liabilities and equity

   $ 1,219,390   $ 2,060,667   $ (664,391 ) $ 2,615,666  
                   

DOLLAR THRIFTY AUTOMOTIVE GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2012
(In Thousands of Dollars)

 
   Guarantor
Subsidiaries		   Non-
Guarantor
Subsidiaries		   Eliminations   Total
Consolidated		  

Total revenues

   $ 1,151,812   $ 346,437   $ (285,999 ) $ 1,212,250  
                   

COSTS AND EXPENSES:

                          

Direct vehicle and operating

     558,350     40,861     (2,748 )   596,463  

Vehicle depreciation and lease charges, net

     302,648     168,446     (282,726 )   188,368  

Selling, general and administrative

     143,258     4,719     (498 )   147,479  

Interest expense, net

     11,156     33,472     (27 )   44,601  
                   

Total costs and expenses

     1,015,412     247,498     (285,999 )   976,911  
                   

(Increase) decrease in fair value of derivatives

     —     525     —     525  

INCOME / (LOSS) BEFORE INCOME TAXES and EQUITY IN EARNINGS OF SUBS

    
136,400		    
98,414		    
—		    
234,814		  

INCOME TAX EXPENSE

    
89,212		    
304		    
—		    
89,516		  
                   

NET INCOME / (LOSS) BEFORE EQUITY IN EARNINGS OF SUBS

     47,188     98,110     —     145,298  

EQUITY IN EARNINGS OF SUBSIDIARIES

    
98,110		    
—		    
(98,110
)		  
—		  
                   

NET INCOME / (LOSS)

   $ 145,298   $ 98,110   $ (98,110 ) $ 145,298  
                   

COMPREHENSIVE INCOME / (LOSS)

   $ 159,277   $ 103,277   $ (103,277 ) $ 159,277  
                   


DOLLAR THRIFTY AUTOMOTIVE GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2011
(In Thousands of Dollars)

 
   Guarantor
Subsidiaries		   Non-
Guarantor
Subsidiaries		   Eliminations   Total
Consolidated		  

Total revenues

   $ 1,140,588   $ 332,591   $ (277,981 ) $ 1,195,198  
                   

COSTS AND EXPENSES:

                          

Direct vehicle and operating

     549,971     40,151     (6,323 )   583,799  

Vehicle depreciation and lease charges, net

     288,433     186,677     (271,127 )   203,983  

Selling, general and administrative

     140,345     5,810     (514 )   145,641  

Interest expense, net

     29,552     29,364     (17 )   58,899  
                   

Total costs and expenses

     1,008,301     262,002     (277,981 )   992,322  
                   

(Increase) decrease in fair value of derivatives

     (5,634 )   2,267     —     (3,367 )

INCOME / (LOSS) BEFORE INCOME TAXES and EQUITY IN EARNINGS OF SUBS

    
137,921		    
68,322		    
—		    
206,243		  

INCOME TAX EXPENSE

    
80,270		    
324		    
—		    
80,594		  
                   

NET INCOME / (LOSS) BEFORE EQUITY IN EARNINGS OF SUBS

     57,651     67,998     —     125,649  

EQUITY IN EARNINGS OF SUBSIDIARIES

    
67,998		    
—		    
(67,998
)		  
—		  
                   

NET INCOME / (LOSS)

   $ 125,649   $ 67,998   $ (67,998 ) $ 125,649  
                   

COMPREHENSIVE INCOME / (LOSS)

   $ 127,358   $ 60,093   $ (60,093 ) $ 127,358  
                   

DOLLAR THRIFTY AUTOMOTIVE GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2012
(In Thousands of Dollars)

 
   Guarantor
Subsidiaries		   Non-
Guarantor
Subsidiaries		   Eliminations   Total
Consolidated		  

Net cash provided by operating activities

   $ 206,985   $ 319,585   $ (91,800 ) $ 434,770  

CASH FLOWS FROM INVESTING ACTIVITIES:

                          

Revenue-earning vehicles—Purchases

     (38,350 )   (1,342,267 )   —     (1,380,617 )

Revenue-earning vehicles—Proceeds from sales

     26,623     730,468     —     757,091  

Net change in restricted cash and investments

     (4,817 )   108,462     —     103,645  

Property, equipment and software—Purchases

     (13,817 )   (84 )   —     (13,901 )

Property, equipment and software—Proceeds from sales

     3,491     —     —     3,491  

Dividends received

     79,000     —     (79,000 )   —  

Investment in subsidiary

     (231,600 )   —     231,600     —  

Intercompany

     (35,029 )   (56,793 )   91,822     —  
                   

Net cash provided by/(used in) investing activities            

     (214,499 )   (560,214 )   244,422     (530,291 )
                   

CASH FLOWS FROM FINANCING ACTIVITIES:

                          

Debt and other obligations:

                          

Proceeds from vehicle debt and other obligations

     —     581,169     —     581,169  

Payments of vehicle debt and other obligations

     —     (500,000 )   —     (500,000 )

Issuance of common shares

     1,694     —     —     1,694  

Net settlement of employee withholding taxes on share-based awards

     (1,215 )   —     —     (1,215 )

Purchases of common stock for the treasury

     (29,136 )   —     —     (29,136 )

Financing issue costs

     (7,825 )   (945 )   —     (8,770 )

Dividends paid

     —     (79,000 )   79,000     —  

Capital contribution from Parent

     —     231,622     (231,622 )   —  
                   

Net cash provided by/(used in) financing activities            

     (36,482 )   232,846     (152,622 )   43,742  
                   

CHANGE IN CASH AND CASH EQUIVALENTS

     (43,996 )   (7,783 )   —     (51,779 )

CASH AND CASH EQUIVALENTS:

                          

Beginning of Period

     446,239     62,409     —     508,648  
                   

End of Period

   $ 402,243   $ 54,626   $ —   $ 456,869  
                   

DOLLAR THRIFTY AUTOMOTIVE GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2011
(In Thousands of Dollars)

 
   Guarantor
Subsidiaries		   Non-
Guarantor
Subsidiaries		   Eliminations   Total
Consolidated		  

Net cash provided by operating activities

   $ 268,555   $ 262,206   $ (72,151 ) $ 458,610  

CASH FLOWS FROM INVESTING ACTIVITIES:

                          

Revenue-earning vehicles—Purchases

     (46,155 )   (937,724 )   —     (983,879 )

Revenue-earning vehicles—Proceeds from sales

     31,135     460,873     —     492,008  

Net change in cash & cash equivalents required minimum balance

     100,000     —     —     100,000  

Net change in restricted cash and investments

     270     76,036     —     76,306  

Property, equipment and software—Purchases

     (11,108 )   (88 )   —     (11,196 )

Property, equipment and software—Proceeds from sales

     324     29     —     353  

Dividends received

     191,675     —     (191,675 )   —  

Investment in subsidiary

     (249,389 )   —     249,389     —  

Intercompany

     (119,298 )   5,583     113,715     —  
                   

Net cash provided by/(used in) investing activities            

     (102,546 )   (395,291 )   171,429     (326,408 )
                   

CASH FLOWS FROM FINANCING ACTIVITIES:

                          

Debt and other obligations:

                          

Proceeds from vehicle debt and other obligations

     —     1,192,226     (54,323 )   1,137,903  

Payments of vehicle debt and other obligations

     —     (1,081,350 )   9,277     (1,072,073 )

Payments—non-vehicle debt

     (148,125 )   —     —     (148,125 )

Issuance of common shares

     2,921     —     —     2,921  

Net settlement of employee withholding taxes on share-based awards

     (3,205 )   —     —     (3,205 )

Financing issue costs

     (1,997 )   (11,306 )   —     (13,303 )

Dividends paid

     —     (191,675 )   191,675     —  

Capital contribution from Parent

     —     245,907     (245,907 )   —  
                   

Net cash provided by/(used in) financing activities            

     (150,406 )   153,802     (99,278 )   (95,882 )
                   

CHANGE IN CASH AND CASH EQUIVALENTS

     15,603     20,717     —     36,320  

CASH AND CASH EQUIVALENTS:

                          

Beginning of Period

     450,007     13,146     —     463,153  
                   

End of Period

   $ 465,610   $ 33,863   $ —   $ 499,473  
                   

19. GUARANTOR AND NON-GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

        In November 2012, the Company was acquired by a wholly owned indirect subsidiary of The Hertz Corporation ("THC"), a wholly owned subsidiary of Hertz Global Holdings, Inc. In February 2013 and March 2013, the Company and certain of its subsidiaries were added as guarantors under certain of THC's debt instruments and credit facilities.

        The following condensed consolidating financial information presents the Condensed Consolidating Balance Sheet as of December 31, 2011, and the Condensed Consolidating Statement of Income for the twelve month period ended December 31, 2011, and Condensed Consolidating Statement of Cash Flows for the twelve month period ended December 31, 2011, of (a) the Company and those of its subsidiaries that guarantee the indebtedness of THC, or the Guarantor Subsidiaries; (b) the subsidiaries of the Company that do not guarantee THC's indebtedness, or the Non-Guarantor Subsidiaries; (c) elimination entries necessary to consolidate the Guarantor Subsidiaries with the Non-Guarantor Subsidiaries; and of (d) the Company and its subsidiaries on a consolidated basis.

        Investments in subsidiaries are accounted for using the equity method for purposes of the consolidating presentation. The principal elimination entries relate to investments in subsidiaries and intercompany balances and transactions. Separate financial statements and other disclosures with respect to the Guarantor Subsidiaries have not been provided, as the Guarantor Subsidiaries are 100% owned by THC and all guarantees are full and unconditional and joint and several. Additionally, substantially all of the assets of the Guarantor Subsidiaries are pledged under THC's Senior Credit Facilities, and consequently will not be available to satisfy the claims of THC's general creditors.

DOLLAR THRIFTY AUTOMOTIVE GROUP, INC. AND SUBSIDIARIES

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

 
   Guarantor
Subsidiaries		   Non-
Guarantor
Subsidiaries		   Eliminations   Total
Consolidated		  

ASSETS

                          

Cash and cash equivalents

  
$
446,239		  
$
62,409		  
$
—		  
$
508,648		  

Restricted cash and investments

     1,355     351,910     —     353,265  

Receivables, net

     86,184     34,294     (25,118 )   95,360  

Intercompany

     (100,436 )   154,999     (54,563 )   —  

Prepaid expenses and other assets

     49,163     20,503     (3,707 )   65,959  

Revenue-earning vehicles, net

     33,057     1,434,778     —     1,467,835  

Property and equipment, net

     82,588     1,690     —     84,278  

Investment in subsidiaries

     581,003     —     (581,003 )   —  

Income taxes receivable

     18,702     84     —     18,786  

Software, net

     21,535     —     —     21,535  
                   

Total assets

   $ 1,219,390   $ 2,060,667   $ (664,391 ) $ 2,615,666  
                   

LIABILITIES AND EQUITY

                          

LIABILITIES:

                          

Accounts payable

   $ 45,827   $ 8,573   $ (23 ) $ 54,377  

Accrued liabilities

     148,820     4,167     (28,802 )   124,185  

Income tax payable / (receivable)

     —     —     —     —  

Deferred income taxes

     341,408     1,554     —     342,962  

Vehicle insurance reserves

     75,663     10,852     —     86,515  

Debt and other obligations

     —     1,454,518     (54,563 )   1,399,955  
                   

Total liabilities

     611,718     1,479,664     (83,388 )   2,007,994  
                   

COMMITMENTS AND CONTINGENCIES

                          

EQUITY:

    
607,672		    
581,003		    
(581,003
)		  
607,672		  
                   

Total liabilities and equity

   $ 1,219,390   $ 2,060,667   $ (664,391 ) $ 2,615,666  
                   


DOLLAR THRIFTY AUTOMOTIVE GROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF INCOME
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2011
(In Thousands of Dollars)

 
   Guarantor
Subsidiaries		   Non-
Guarantor
Subsidiaries		   Eliminations   Total
Consolidated		  

Total revenues

   $ 1,480,660   $ 436,441   $ (368,173 ) $ 1,548,928  
                   

COSTS AND EXPENSES:

                          

Direct vehicle and operating

     708,477     51,008     (8,017 )   751,468  

Vehicle depreciation and lease charges, net

     378,898     251,526     (359,467 )   270,957  

Selling, general and administrative

     184,769     6,937     (663 )   191,043  

Interest expense, net

     36,003     41,485     (26 )   77,462  
                   

Total costs and expenses

     1,308,147     350,956     (368,173 )   1,290,930  
                   

(Increase) decrease in fair value of derivatives

     (5,634 )   2,390     —     (3,244 )

INCOME / (LOSS) BEFORE INCOME TAXES and EQUITY IN EARNINGS OF SUBS

    
178,147		    
83,095		    
—		    
261,242		  

INCOME TAX EXPENSE

    
100,772		    
920		    
—		    
101,692		  
                   

NET INCOME / (LOSS) BEFORE EQUITY IN EARNINGS OF SUBS

     77,375     82,175     —     159,550  

EQUITY IN EARNINGS OF SUBSIDIARIES

    
82,175		    
—		    
(82,175
)		  
—		  
                   

NET INCOME / (LOSS)

   $ 159,550   $ 82,175   $ (82,175 ) $ 159,550  
                   


DOLLAR THRIFTY AUTOMOTIVE GROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2011
(In Thousands of Dollars)

 
   Guarantor
Subsidiaries		   Non-
Guarantor
Subsidiaries		   Eliminations   Total
Consolidated		  

Net cash provided by operating activities

   $ 306,521   $ 347,234   $ (86,461 ) $ 567,294  

CASH FLOWS FROM INVESTING ACTIVITIES:

                          

Revenue-earning vehicles—Purchases

     (58,522 )   (1,110,010 )   —     (1,168,532 )

Revenue-earning vehicles—Proceeds from sales

     42,746     715,020     —     757,766  

Net change in cash & cash equivalents required minimum balance

     100,000     —     —     100,000  

Net change in restricted cash and investments

     16     (75,477 )   —     (75,461 )

Property, equipment and software—Purchases

     (16,543 )   (90 )   —     (16,633 )

Property, equipment and software—Proceeds from sales

     330     29     —     359  

Dividends received

     266,675     —     (266,675 )   —  

Investment in subsidiary

     (247,713 )   —     247,713     —  

Intercompany

     (139,869 )   8,993     130,876     —  
                   

Net cash provided by/(used in) investing activities            

     (52,880 )   (461,535 )   111,914     (402,501 )
                   

CASH FLOWS FROM FINANCING ACTIVITIES:

                          

Debt and other obligations:

                          

Proceeds from vehicle debt and other obligations

     —     1,592,466     (54,563 )   1,537,903  

Payments of vehicle debt and other obligations

     —     (1,396,350 )   9,277     (1,387,073 )

Payments—non-vehicle debt

     (148,125 )   —     —     (148,125 )

Issuance of common shares

     4,774     —     —     4,774  

Net settlement of employee withholding taxes on share-based awards

     (3,205 )   —     —     (3,205 )

Early termination of interest rate swap

     (8,815 )   —     —     (8,815 )

Forward stock repurchase agreement

     (100,000 )   —     —     (100,000 )

Financing issue costs

     (2,038 )   (12,719 )   —     (14,757 )

Dividends paid

     —     (266,675 )   266,675     —  

Capital contribution from Parent

     —     246,842     (246,842 )   —  
                   

Net cash provided by/(used in) financing activities            

     (257,409 )   163,564     (25,453 )   (119,298 )
                   

CHANGE IN CASH AND CASH EQUIVALENTS

     (3,768 )   49,263     —     45,495  

CASH AND CASH EQUIVALENTS:

                          

Beginning of Period

     450,007     13,146     —     463,153  
                   

End of Period

   $ 446,239   $ 62,409   $ —   $ 508,648