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Guarantor and Non-Guarantor Condensed Consolidating Financial Statements (Tables)
 12 Months Ended
Dec. 31, 2012
Guarantor and Non-Guarantor Condensed Consolidating Financial Statements Disclosure  
Schedule of condensed consolidating balance sheets
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
Schedule of condensed consolidating statement of operations


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
Schedule of condensed consolidating comprehensive income (loss)


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
Schedule of condensed consolidating statement of cash flows
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