x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended March 31, 2019 | |
OR | |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
DELAWARE | 001-37665 | 61-1770902 | ||
DELAWARE | 001-07541 | 13-1938568 | ||
(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||
8501 Williams Road Estero, Florida 33928 (239) 301-7000 | ||||
(Address, including Zip Code, and telephone number, including area code, of registrant's principal executive offices) | ||||
Not Applicable | ||||
(Former name, former address and former fiscal year, if changed since last report.) |
Hertz Global Holdings, Inc. | Large accelerated filer | x | Accelerated filer | o | Non-accelerated filer | o |
Smaller reporting company | o | Emerging growth company | o | |||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | o | |||||
The Hertz Corporation | Large accelerated filer | o | Accelerated filer | o | Non-accelerated filer | x |
Smaller reporting company | o | Emerging growth company | o | |||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | o |
Securities registered pursuant to Section 12(b) of the Act: | ||||||
Title of Each Class | Trading Symbol(s) | Name of Each Exchange on which Registered | ||||
Hertz Global Holdings, Inc. | Common Stock, Par Value $0.01 per share | HTZ | New York Stock Exchange | |||
The Hertz Corporation | None | None | None |
Class | Shares Outstanding at | April 29, 2019 | |||
Hertz Global Holdings, Inc. | Common Stock, par value $0.01 per share | 84,119,340 | |||
The Hertz Corporation | Common Stock, par value $0.01 per share | 100 (100% owned by Rental Car Intermediate Holdings, LLC) | |||
Page | ||
Page | ||
Hertz Global Holdings, Inc. and Subsidiaries | ||
The Hertz Corporation and Subsidiaries | ||
Notes to the Condensed Consolidated Financial Statements | ||
March 31, 2019 | December 31, 2018 | ||||||
ASSETS | |||||||
Cash and cash equivalents | $ | 554 | $ | 1,127 | |||
Restricted cash and cash equivalents: | |||||||
Vehicle | 425 | 257 | |||||
Non-vehicle | 27 | 26 | |||||
Total restricted cash and cash equivalents | 452 | 283 | |||||
Total cash, cash equivalents, restricted cash and restricted cash equivalents | 1,006 | 1,410 | |||||
Receivables: | |||||||
Vehicle | 583 | 625 | |||||
Non-vehicle, net of allowance of $27 and $27, respectively | 980 | 962 | |||||
Total receivables, net | 1,563 | 1,587 | |||||
Prepaid expenses and other assets | 1,107 | 902 | |||||
Revenue earning vehicles: | |||||||
Vehicles | 16,979 | 15,703 | |||||
Less: accumulated depreciation | (3,211 | ) | (3,284 | ) | |||
Total revenue earning vehicles, net | 13,768 | 12,419 | |||||
Property and equipment, net | 771 | 778 | |||||
Operating lease right-of-use assets | 1,514 | — | |||||
Intangible assets, net | 3,218 | 3,203 | |||||
Goodwill | 1,083 | 1,083 | |||||
Total assets(a) | $ | 24,030 | $ | 21,382 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Accounts payable: | |||||||
Vehicle | $ | 649 | $ | 284 | |||
Non-vehicle | 630 | 704 | |||||
Total accounts payable | 1,279 | 988 | |||||
Accrued liabilities | 1,330 | 1,304 | |||||
Accrued taxes, net | 146 | 136 | |||||
Debt: | |||||||
Vehicle | 12,827 | 11,902 | |||||
Non-vehicle | 4,430 | 4,422 | |||||
Total debt | 17,257 | 16,324 | |||||
Operating lease liabilities | 1,513 | — | |||||
Public liability and property damage | 411 | 418 | |||||
Deferred income taxes, net | 1,089 | 1,092 | |||||
Total liabilities(a) | 23,025 | 20,262 | |||||
Commitments and contingencies | |||||||
Stockholders' equity: | |||||||
Preferred stock, $0.01 par value, no shares issued and outstanding | — | — | |||||
Common stock, $0.01 par value, 86 and 86 shares issued, respectively and 84 and 84 shares outstanding, respectively | 1 | 1 | |||||
Additional paid-in capital | 2,262 | 2,261 | |||||
Accumulated deficit | (1,056 | ) | (909 | ) | |||
Accumulated other comprehensive income (loss) | (185 | ) | (192 | ) | |||
Treasury stock, at cost, 2 shares and 2 shares, respectively | (100 | ) | (100 | ) | |||
Stockholders' equity attributable to Hertz Global | 922 | 1,061 | |||||
Noncontrolling interests | 83 | 59 | |||||
Total stockholders' equity | 1,005 | 1,120 | |||||
Total liabilities and stockholders' equity | $ | 24,030 | $ | 21,382 |
(a) | Hertz Global Holdings, Inc.'s consolidated total assets as of March 31, 2019 and December 31, 2018 include total assets of variable interest entities (“VIEs”) of $1.1 billion and $1.0 billion, respectively, which can only be used to settle obligations of the VIEs. Hertz Global Holdings, Inc.'s consolidated total liabilities as of March 31, 2019 and December 31, 2018 include total liabilities of VIEs of $1.0 billion and $947 million, respectively, for which the creditors of the VIEs have no recourse to Hertz Global Holdings, Inc. See "Special Purpose Entities" in Note 3, "Debt," and "Other Relationships" in Note 9, "Related Party Transactions," for further information. |
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
Revenues: | |||||||
Worldwide vehicle rental | $ | 1,953 | $ | 1,894 | |||
All other operations | 154 | 169 | |||||
Total revenues | 2,107 | 2,063 | |||||
Expenses: | |||||||
Direct vehicle and operating | 1,266 | 1,236 | |||||
Depreciation of revenue earning vehicles and lease charges | 592 | 661 | |||||
Selling, general and administrative | 234 | 234 | |||||
Interest expense, net: | |||||||
Vehicle | 112 | 94 | |||||
Non-vehicle | 71 | 72 | |||||
Total interest expense, net | 183 | 166 | |||||
Other (income) expense, net | (19 | ) | (3 | ) | |||
Total expenses | 2,256 | 2,294 | |||||
Income (loss) before income taxes | (149 | ) | (231 | ) | |||
Income tax (provision) benefit | 1 | 29 | |||||
Net income (loss) | (148 | ) | (202 | ) | |||
Net (income) loss attributable to noncontrolling interests | 1 | — | |||||
Net income (loss) attributable to Hertz Global | $ | (147 | ) | $ | (202 | ) | |
Weighted average shares outstanding: | |||||||
Basic | 84 | 83 | |||||
Diluted | 84 | 83 | |||||
Earnings (loss) per share: | |||||||
Basic earnings (loss) per share | $ | (1.75 | ) | $ | (2.43 | ) | |
Diluted earnings (loss) per share | $ | (1.75 | ) | $ | (2.43 | ) |
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
Net income (loss) | $ | (148 | ) | $ | (202 | ) | |
Other comprehensive income (loss): | |||||||
Foreign currency translation adjustments | 8 | — | |||||
Net gain (loss) on defined benefit pension plans | (1 | ) | (3 | ) | |||
Reclassification from other comprehensive income (loss) to other (income) expense for amortization of actuarial (gains) losses on defined benefit pension plans | 1 | — | |||||
Total other comprehensive income (loss) before income taxes | 8 | (3 | ) | ||||
Income tax (provision) benefit related to reclassified amounts of net periodic costs on defined benefit pension plans | (1 | ) | — | ||||
Total other comprehensive income (loss) | 7 | (3 | ) | ||||
Total comprehensive income (loss) | (141 | ) | (205 | ) | |||
Comprehensive (income) loss attributable to noncontrolling interests | 1 | — | |||||
Comprehensive income (loss) attributable to Hertz Global | $ | (140 | ) | $ | (205 | ) |
Preferred Stock Shares | Common Stock Shares | Common Stock Amount | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) | Treasury Stock Shares | Treasury Stock Amount | Stockholders' Equity Attributable to Hertz Global | Non- controlling Interests | Total Stockholders' Equity | ||||||||||||||||||||||||||||||
Balance as of: | ||||||||||||||||||||||||||||||||||||||||
December 31, 2017 | — | 84 | $ | 1 | $ | 2,243 | $ | (506 | ) | $ | (118 | ) | 2 | $ | (100 | ) | $ | 1,520 | $ | — | $ | 1,520 | ||||||||||||||||||
Change in accounting principle | — | — | — | — | (189 | ) | — | — | — | (189 | ) | — | (189 | ) | ||||||||||||||||||||||||||
January 1, 2018 (as adjusted) | — | 84 | 1 | 2,243 | (695 | ) | (118 | ) | 2 | (100 | ) | 1,331 | — | 1,331 | ||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | (202 | ) | — | — | — | (202 | ) | — | (202 | ) | ||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | — | (3 | ) | — | — | (3 | ) | — | (3 | ) | ||||||||||||||||||||||||||
Net settlement on vesting of restricted stock | — | — | — | (3 | ) | — | — | — | — | (3 | ) | — | (3 | ) | ||||||||||||||||||||||||||
Stock-based compensation charges | — | — | — | 10 | — | — | — | — | 10 | — | 10 | |||||||||||||||||||||||||||||
Contributions from noncontrolling interests | — | — | — | — | — | — | — | — | — | 5 | 5 | |||||||||||||||||||||||||||||
March 31, 2018 | — | 84 | $ | 1 | $ | 2,250 | $ | (897 | ) | $ | (121 | ) | 2 | $ | (100 | ) | $ | 1,133 | $ | 5 | $ | 1,138 |
Preferred Stock Shares | Common Stock Shares | Common Stock Amount | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) | Treasury Stock Shares | Treasury Stock Amount | Stockholders' Equity Attributable to Hertz Global | Non- controlling Interests | Total Stockholders' Equity | ||||||||||||||||||||||||||||||
Balance as of: | ||||||||||||||||||||||||||||||||||||||||
December 31, 2018 | — | 84 | $ | 1 | $ | 2,261 | $ | (909 | ) | $ | (192 | ) | 2 | $ | (100 | ) | $ | 1,061 | $ | 59 | $ | 1,120 | ||||||||||||||||||
Net income (loss) | — | — | — | — | (147 | ) | — | — | — | (147 | ) | (1 | ) | (148 | ) | |||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | — | 7 | — | — | 7 | — | 7 | |||||||||||||||||||||||||||||
Net settlement on vesting of restricted stock | — | — | — | (2 | ) | — | — | — | — | (2 | ) | — | (2 | ) | ||||||||||||||||||||||||||
Stock-based compensation charges | — | — | — | 3 | — | — | — | — | 3 | — | 3 | |||||||||||||||||||||||||||||
Contributions from noncontrolling interests | — | — | — | — | — | — | — | — | — | 25 | 25 | |||||||||||||||||||||||||||||
March 31, 2019 | — | 84 | $ | 1 | $ | 2,262 | $ | (1,056 | ) | $ | (185 | ) | 2 | $ | (100 | ) | $ | 922 | $ | 83 | $ | 1,005 |
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
Cash flows from operating activities: | |||||||
Net income (loss) | $ | (148 | ) | $ | (202 | ) | |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||
Depreciation and reserves for revenue earning vehicles | 644 | 641 | |||||
Depreciation and amortization, non-vehicle | 48 | 58 | |||||
Amortization of deferred financing costs and debt discount (premium) | 14 | 13 | |||||
Stock-based compensation charges | 3 | 3 | |||||
Provision for receivables allowance | 10 | 9 | |||||
Deferred income taxes, net | (4 | ) | (36 | ) | |||
(Gain) loss on marketable securities | (11 | ) | — | ||||
Other | (13 | ) | 4 | ||||
Changes in assets and liabilities: | |||||||
Non-vehicle receivables | (33 | ) | (107 | ) | |||
Prepaid expenses and other assets | (55 | ) | (64 | ) | |||
Operating lease right-of-use assets | 90 | — | |||||
Non-vehicle accounts payable | 32 | 73 | |||||
Accrued liabilities | 28 | 4 | |||||
Accrued taxes, net | 10 | 2 | |||||
Operating lease liabilities | (94 | ) | — | ||||
Public liability and property damage | (7 | ) | 3 | ||||
Net cash provided by (used in) operating activities | 514 | 401 | |||||
Cash flows from investing activities: | |||||||
Revenue earning vehicles expenditures | (3,973 | ) | (3,565 | ) | |||
Proceeds from disposal of revenue earning vehicles | 2,153 | 1,782 | |||||
Capital asset expenditures, non-vehicle | (54 | ) | (44 | ) | |||
Proceeds from property and other equipment disposed of or to be disposed of | 19 | 4 | |||||
Other | — | (27 | ) | ||||
Net cash provided by (used in) investing activities | (1,855 | ) | (1,850 | ) |
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
Cash flows from financing activities: | |||||||
Proceeds from issuance of vehicle debt | 3,667 | 5,181 | |||||
Repayments of vehicle debt | (2,736 | ) | (3,283 | ) | |||
Proceeds from issuance of non-vehicle debt | 341 | 127 | |||||
Repayments of non-vehicle debt | (344 | ) | (131 | ) | |||
Payment of financing costs | (12 | ) | (19 | ) | |||
Contributions from noncontrolling interests | 25 | 5 | |||||
Other | (2 | ) | (3 | ) | |||
Net cash provided by (used in) financing activities | 939 | 1,877 | |||||
Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents | (2 | ) | 8 | ||||
Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents during the period | (404 | ) | 436 | ||||
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period | 1,410 | 1,504 | |||||
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period | $ | 1,006 | $ | 1,940 | |||
Supplemental disclosures of cash flow information: | |||||||
Cash paid during the period for: | |||||||
Interest, net of amounts capitalized: | |||||||
Vehicle | $ | 87 | $ | 82 | |||
Non-vehicle | 29 | 28 | |||||
Income taxes, net of refunds | 6 | 6 | |||||
Operating lease liabilities | 140 | — | |||||
Supplemental disclosures of non-cash information: | |||||||
Purchases of revenue earning vehicles included in accounts payable and accrued liabilities, net of incentives | $ | 431 | $ | 613 | |||
Sales of revenue earning vehicles included in receivables | 365 | 268 | |||||
Sales of revenue earning vehicles included in other receivables | 78 | — | |||||
Purchases of non-vehicle capital assets included in accounts payable | 45 | 42 | |||||
Operating lease right-of-use assets obtained in exchange for lease liabilities | 20 | — |
March 31, 2019 | December 31, 2018 | ||||||
ASSETS | |||||||
Cash and cash equivalents | $ | 554 | $ | 1,127 | |||
Restricted cash and cash equivalents: | |||||||
Vehicle | 425 | 257 | |||||
Non-vehicle | 27 | 26 | |||||
Total restricted cash and cash equivalents | 452 | 283 | |||||
Total cash, cash equivalents, restricted cash and restricted cash equivalents | 1,006 | 1,410 | |||||
Receivables: | |||||||
Vehicle | 583 | 625 | |||||
Non-vehicle, net of allowance of $27 and $27, respectively | 980 | 962 | |||||
Total receivables, net | 1,563 | 1,587 | |||||
Prepaid expenses and other assets | 1,107 | 902 | |||||
Revenue earning vehicles: | |||||||
Vehicles | 16,979 | 15,703 | |||||
Less: accumulated depreciation | (3,211 | ) | (3,284 | ) | |||
Total revenue earning vehicles, net | 13,768 | 12,419 | |||||
Property and equipment, net | 771 | 778 | |||||
Operating lease right-of-use assets | 1,514 | — | |||||
Intangible assets, net | 3,218 | 3,203 | |||||
Goodwill | 1,083 | 1,083 | |||||
Total assets(a) | $ | 24,030 | $ | 21,382 | |||
LIABILITIES AND STOCKHOLDER'S EQUITY | |||||||
Accounts payable: | |||||||
Vehicle | $ | 649 | $ | 284 | |||
Non-vehicle | 630 | 704 | |||||
Total accounts payable | 1,279 | 988 | |||||
Accrued liabilities | 1,330 | 1,304 | |||||
Accrued taxes, net | 146 | 136 | |||||
Debt: | |||||||
Vehicle | 12,827 | 11,902 | |||||
Non-vehicle | 4,430 | 4,422 | |||||
Total debt | 17,257 | 16,324 | |||||
Operating lease liabilities | 1,513 | — | |||||
Public liability and property damage | 411 | 418 | |||||
Deferred income taxes, net | 1,091 | 1,094 | |||||
Total liabilities(a) | 23,027 | 20,264 | |||||
Commitments and contingencies | |||||||
Stockholder's equity: | |||||||
Common stock, $0.01 par value, 100 and 100 shares issued and outstanding, respectively | — | — | |||||
Additional paid-in capital | 3,190 | 3,187 | |||||
Due from affiliate | (56 | ) | (52 | ) | |||
Accumulated deficit | (2,029 | ) | (1,884 | ) | |||
Accumulated other comprehensive income (loss) | (185 | ) | (192 | ) | |||
Stockholder's equity attributable to Hertz | 920 | 1,059 | |||||
Noncontrolling interests | 83 | 59 | |||||
Total stockholder's equity | 1,003 | 1,118 | |||||
Total liabilities and stockholder's equity | $ | 24,030 | $ | 21,382 |
(a) | The Hertz Corporation's consolidated total assets as of March 31, 2019 and December 31, 2018 include total assets of variable interest entities (“VIEs”) of $1.1 billion and $1.0 billion, respectively, which can only be used to settle obligations of the VIEs. The Hertz Corporation's consolidated total liabilities as of March 31, 2019 and December 31, 2018 include total liabilities of VIEs of $1.0 billion and $947 million, respectively, for which the creditors of the VIEs have no recourse to The Hertz Corporation. See "Special Purpose Entities" in Note 3, "Debt," and "Other Relationships" in Note 9, "Related Party Transactions," for further information. |
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
Revenues: | |||||||
Worldwide vehicle rental | $ | 1,953 | $ | 1,894 | |||
All other operations | 154 | 169 | |||||
Total revenues | 2,107 | 2,063 | |||||
Expenses: | |||||||
Direct vehicle and operating | 1,266 | 1,236 | |||||
Depreciation of revenue earning vehicles and lease charges | 592 | 661 | |||||
Selling, general and administrative | 234 | 234 | |||||
Interest expense, net: | |||||||
Vehicle | 112 | 94 | |||||
Non-vehicle | 69 | 71 | |||||
Total interest expense, net | 181 | 165 | |||||
Other (income) expense, net | (19 | ) | (3 | ) | |||
Total expenses | 2,254 | 2,293 | |||||
Income (loss) before income taxes | (147 | ) | (230 | ) | |||
Income tax (provision) benefit | 1 | 29 | |||||
Net income (loss) | (146 | ) | (201 | ) | |||
Net (income) loss attributable to noncontrolling interests | 1 | — | |||||
Net income (loss) attributable to Hertz | $ | (145 | ) | $ | (201 | ) |
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
Net income (loss) | $ | (146 | ) | $ | (201 | ) | |
Other comprehensive income (loss): | |||||||
Foreign currency translation adjustments | 8 | — | |||||
Net gain (loss) on defined benefit pension plans | (1 | ) | (3 | ) | |||
Reclassification from other comprehensive income (loss) to other (income) expense for amortization of actuarial (gains) losses on defined benefit pension plans | 1 | — | |||||
Total other comprehensive income (loss) before income taxes | 8 | (3 | ) | ||||
Income tax (provision) benefit related to reclassified amounts of net periodic costs on defined benefit pension plans | (1 | ) | — | ||||
Total other comprehensive income (loss) | 7 | (3 | ) | ||||
Total comprehensive income (loss) | (139 | ) | (204 | ) | |||
Comprehensive (income) loss attributable to noncontrolling interests | 1 | — | |||||
Comprehensive income (loss) attributable to Hertz | $ | (138 | ) | $ | (204 | ) |
Common Stock Shares | Common Stock Amount | Additional Paid-In Capital | Due From Affiliate | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) | Stockholder's Equity Attributable to Hertz | Noncontrolling Interests | Total Stockholder's Equity | ||||||||||||||||||||||||||
Balance at: | ||||||||||||||||||||||||||||||||||
December 31, 2017 | 100 | $ | — | $ | 3,166 | $ | (42 | ) | $ | (1,486 | ) | $ | (118 | ) | $ | 1,520 | $ | — | $ | 1,520 | ||||||||||||||
Change in accounting principle | — | — | — | — | (189 | ) | — | (189 | ) | — | (189 | ) | ||||||||||||||||||||||
January 1, 2018 (as adjusted) | 100 | — | 3,166 | (42 | ) | (1,675 | ) | (118 | ) | 1,331 | — | 1,331 | ||||||||||||||||||||||
Net income (loss) | — | — | — | — | (201 | ) | — | (201 | ) | — | (201 | ) | ||||||||||||||||||||||
Due from Hertz Holdings | — | — | — | (4 | ) | — | — | (4 | ) | — | (4 | ) | ||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | — | (3 | ) | (3 | ) | — | (3 | ) | ||||||||||||||||||||||
Stock-based compensation charges | — | — | 10 | — | — | — | 10 | — | 10 | |||||||||||||||||||||||||
Contributions from noncontrolling interests | — | — | — | — | — | — | — | 5 | 5 | |||||||||||||||||||||||||
March 31, 2018 | 100 | $ | — | $ | 3,176 | $ | (46 | ) | $ | (1,876 | ) | $ | (121 | ) | $ | 1,133 | $ | 5 | $ | 1,138 |
Common Stock Shares | Common Stock Amount | Additional Paid-In Capital | Due From Affiliate | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) | Stockholder's Equity Attributable to Hertz | Noncontrolling Interests | Total Stockholder's Equity | ||||||||||||||||||||||||||
Balance at: | ||||||||||||||||||||||||||||||||||
December 31, 2018 | 100 | $ | — | $ | 3,187 | $ | (52 | ) | $ | (1,884 | ) | $ | (192 | ) | $ | 1,059 | $ | 59 | $ | 1,118 | ||||||||||||||
Net income (loss) | — | — | — | — | (145 | ) | — | (145 | ) | (1 | ) | (146 | ) | |||||||||||||||||||||
Due from Hertz Holdings | — | — | — | (4 | ) | — | — | (4 | ) | — | (4 | ) | ||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | — | 7 | 7 | — | 7 | |||||||||||||||||||||||||
Stock-based compensation charges | — | — | 3 | — | — | — | 3 | — | 3 | |||||||||||||||||||||||||
Contributions from noncontrolling interests | — | — | — | — | — | — | — | 25 | 25 | |||||||||||||||||||||||||
March 31, 2019 | 100 | $ | — | $ | 3,190 | $ | (56 | ) | $ | (2,029 | ) | $ | (185 | ) | $ | 920 | $ | 83 | $ | 1,003 |
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
Cash flows from operating activities: | |||||||
Net income (loss) | $ | (146 | ) | $ | (201 | ) | |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||
Depreciation and reserves for revenue earning vehicles | 644 | 641 | |||||
Depreciation and amortization, non-vehicle | 48 | 58 | |||||
Amortization of deferred financing costs and debt discount (premium) | 14 | 13 | |||||
Stock-based compensation charges | 3 | 3 | |||||
Provision for receivables allowance | 10 | 9 | |||||
Deferred income taxes, net | (4 | ) | (36 | ) | |||
(Gain) loss on marketable securities | (11 | ) | — | ||||
Other | (13 | ) | 4 | ||||
Changes in assets and liabilities: | |||||||
Non-vehicle receivables | (33 | ) | (107 | ) | |||
Prepaid expenses and other assets | (55 | ) | (64 | ) | |||
Operating lease right-of-use assets | 90 | — | |||||
Non-vehicle accounts payable | 32 | 73 | |||||
Accrued liabilities | 28 | 4 | |||||
Accrued taxes, net | 10 | 2 | |||||
Operating lease liabilities | (94 | ) | — | ||||
Public liability and property damage | (7 | ) | 3 | ||||
Net cash provided by (used in) operating activities | 516 | 402 | |||||
Cash flows from investing activities: | |||||||
Revenue earning vehicles expenditures | (3,973 | ) | (3,565 | ) | |||
Proceeds from disposal of revenue earning vehicles | 2,153 | 1,782 | |||||
Capital asset expenditures, non-vehicle | (54 | ) | (44 | ) | |||
Proceeds from property and other equipment disposed of or to be disposed of | 19 | 4 | |||||
Other | — | (27 | ) | ||||
Net cash provided by (used in) investing activities | (1,855 | ) | (1,850 | ) |
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
Cash flows from financing activities: | |||||||
Proceeds from issuance of vehicle debt | 3,667 | 5,181 | |||||
Repayments of vehicle debt | (2,736 | ) | (3,283 | ) | |||
Proceeds from issuance of non-vehicle debt | 341 | 127 | |||||
Repayments of non-vehicle debt | (344 | ) | (131 | ) | |||
Payment of financing costs | (12 | ) | (19 | ) | |||
Advances to Hertz Holdings | (4 | ) | (4 | ) | |||
Contributions from noncontrolling interests | 25 | 5 | |||||
Net cash provided by (used in) financing activities | 937 | 1,876 | |||||
Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents | (2 | ) | 8 | ||||
Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents during the period | (404 | ) | 436 | ||||
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period | 1,410 | 1,504 | |||||
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period | $ | 1,006 | $ | 1,940 | |||
Supplemental disclosures of cash flow information: | |||||||
Cash paid during the period for: | |||||||
Interest, net of amounts capitalized: | |||||||
Vehicle | $ | 87 | $ | 82 | |||
Non-vehicle | 29 | 28 | |||||
Income taxes, net of refunds | 6 | 6 | |||||
Operating lease liabilities | 140 | — | |||||
Supplemental disclosures of non-cash information: | |||||||
Purchases of revenue earning vehicles included in accounts payable and accrued liabilities, net of incentives | $ | 431 | $ | 613 | |||
Sales of revenue earning vehicles included in receivables | 365 | 268 | |||||
Sales of revenue earning vehicles included in other receivables | 78 | — | |||||
Purchases of non-vehicle capital assets included in accounts payable | 45 | 42 | |||||
Operating lease right-of-use assets obtained in exchange for lease liabilities | 20 | — |
(In millions) | Operating Lease Right-of-Use Assets | Prepaid and Other Assets | Total Assets | Operating Lease Liabilities | Accrued Liabilities | Total Liabilities | Total Liabilities and Stockholders' Equity | ||||||||||||||||||||
As of December 31, 2018 | $ | — | $ | 902 | $ | 21,382 | $ | — | $ | 1,304 | $ | 20,262 | $ | 21,382 | |||||||||||||
Effect of Adopting Topic 842 | 1,585 | (45 | ) | 1,540 | 1,588 | (48 | ) | 1,540 | 1,540 | ||||||||||||||||||
As of January 1, 2019 | $ | 1,585 | $ | 857 | $ | 22,922 | $ | 1,588 | $ | 1,256 | $ | 21,802 | $ | 22,922 |
(In millions) | Operating Lease Right-of-Use Assets | Prepaid and Other Assets | Total Assets | Operating Lease Liabilities | Accrued Liabilities | Total Liabilities | Total Liabilities and Stockholder's Equity | ||||||||||||||||||||
As of December 31, 2018 | $ | — | $ | 902 | $ | 21,382 | $ | — | $ | 1,304 | $ | 20,264 | $ | 21,382 | |||||||||||||
Effect of Adopting Topic 842 | 1,585 | (45 | ) | 1,540 | 1,588 | (48 | ) | 1,540 | 1,540 | ||||||||||||||||||
As of January 1, 2019 | $ | 1,585 | $ | 857 | $ | 22,922 | $ | 1,588 | $ | 1,256 | $ | 21,804 | $ | 22,922 |
Facility | Weighted Average Interest Rate as of March 31, 2019 | Fixed or Floating Interest Rate | Maturity | March 31, 2019 | December 31, 2018 | |||||||||
Non-Vehicle Debt | ||||||||||||||
Senior Term Loan | 5.25% | Floating | 6/2023 | $ | 670 | $ | 674 | |||||||
Senior RCF | N/A | Floating | 6/2021 | — | — |
Facility | Weighted Average Interest Rate as of March 31, 2019 | Fixed or Floating Interest Rate | Maturity | March 31, 2019 | December 31, 2018 | |||||||||
Senior Notes(1) | 6.13% | Fixed | 10/2020-10/2024 | 2,500 | 2,500 | |||||||||
Senior Second Priority Secured Notes | 7.63% | Fixed | 6/2022 | 1,250 | 1,250 | |||||||||
Promissory Notes | 7.00% | Fixed | 1/2028 | 27 | 27 | |||||||||
Other Non-Vehicle Debt | 6.14% | Fixed | Various | 13 | 4 | |||||||||
Unamortized Debt Issuance Costs and Net (Discount) Premium | (30 | ) | (33 | ) | ||||||||||
Total Non-Vehicle Debt | 4,430 | 4,422 | ||||||||||||
Vehicle Debt | ||||||||||||||
HVF II U.S. ABS Program | ||||||||||||||
HVF II U.S. Vehicle Variable Funding Notes | ||||||||||||||
HVF II Series 2013-A(2) | 3.67% | Floating | 3/2021 | 3,570 | 2,940 | |||||||||
HVF II Series 2019-A(2) | N/A | Floating | 10/2019 | — | — | |||||||||
3,570 | 2,940 | |||||||||||||
HVF II U.S. Vehicle Medium Term Notes | ||||||||||||||
HVF II Series 2015-1(2) | 2.93% | Fixed | 3/2020 | 780 | 780 | |||||||||
HVF II Series 2015-3(2) | 3.10% | Fixed | 9/2020 | 371 | 371 | |||||||||
HVF II Series 2016-1(2) | N/A | N/A | N/A | — | 466 | |||||||||
HVF II Series 2016-2(2) | 3.41% | Fixed | 3/2021 | 595 | 595 | |||||||||
HVF II Series 2016-3(2) | 2.72% | Fixed | 7/2019 | 424 | 424 | |||||||||
HVF II Series 2016-4(2) | 3.09% | Fixed | 7/2021 | 424 | 424 | |||||||||
HVF II Series 2017-1(2) | 3.38% | Fixed | 10/2020 | 450 | 450 | |||||||||
HVF II Series 2017-2(2) | 3.57% | Fixed | 10/2022 | 350 | 350 | |||||||||
HVF II Series 2018-1(2) | 3.41% | Fixed | 2/2023 | 1,000 | 1,000 | |||||||||
HVF II Series 2018-2(2) | 3.80% | Fixed | 6/2021 | 200 | 200 | |||||||||
HVF II Series 2018-3(2) | 4.15% | Fixed | 7/2023 | 200 | 200 | |||||||||
HVF II Series 2019-1(2) | 3.85% | Fixed | 3/2022 | 700 | — | |||||||||
5,494 | 5,260 | |||||||||||||
Donlen ABS Program | ||||||||||||||
HFLF Variable Funding Notes | ||||||||||||||
HFLF Series 2013-2(2) | 3.86% | Floating | 3/2021 | 482 | 320 | |||||||||
482 | 320 | |||||||||||||
HFLF Medium Term Notes | ||||||||||||||
HFLF Series 2015-1(3) | N/A | N/A | N/A | — | 33 | |||||||||
HFLF Series 2016-1(3) | 3.81% | Both | 4/2019-2/2020 | 136 | 171 | |||||||||
HFLF Series 2017-1(3) | 2.86% | Both | 4/2019-4/2021 | 352 | 397 | |||||||||
HFLF Series 2018-1(3) | 3.28% | Both | 7/2019-6/2021 | 550 | 550 | |||||||||
1,038 | 1,151 |
Facility | Weighted Average Interest Rate as of March 31, 2019 | Fixed or Floating Interest Rate | Maturity | March 31, 2019 | December 31, 2018 | |||||||||
Vehicle Debt - Other | ||||||||||||||
U.S. Vehicle RCF | 4.98% | Floating | 6/2021 | 146 | 146 | |||||||||
European Vehicle Notes(4) | 5.07% | Fixed | 10/2021-3/2023 | 815 | 829 | |||||||||
European ABS(2) | 1.75% | Floating | 10/2020 | 585 | 600 | |||||||||
Canadian Securitization(2) | 3.57% | Floating | 3/2020 | 261 | 220 | |||||||||
Australian Securitization(2) | 3.56% | Floating | 3/2020 | 155 | 155 | |||||||||
New Zealand RCF | 4.60% | Floating | 3/2020 | 41 | 40 | |||||||||
U.K. Financing Facility | 3.08% | Floating | 4/2019-9/2021 | 244 | 242 | |||||||||
Other Vehicle Debt | 3.98% | Floating | 4/2019-10/2022 | 39 | 42 | |||||||||
2,286 | 2,274 | |||||||||||||
Unamortized Debt Issuance Costs and Net (Discount) Premium | (43 | ) | (43 | ) | ||||||||||
Total Vehicle Debt | 12,827 | 11,902 | ||||||||||||
Total Debt | $ | 17,257 | $ | 16,324 |
(1) | References to the "Senior Notes" include the series of Hertz's unsecured senior notes set forth in the table below. Outstanding principal amounts for each such series of the Senior Notes is also specified below: |
(In millions) | Outstanding Principal | ||||||
Senior Notes | March 31, 2019 | December 31, 2018 | |||||
5.875% Senior Notes due October 2020 | $ | 700 | $ | 700 | |||
7.375% Senior Notes due January 2021 | 500 | 500 | |||||
6.250% Senior Notes due October 2022 | 500 | 500 | |||||
5.500% Senior Notes due October 2024 | 800 | 800 | |||||
$ | 2,500 | $ | 2,500 |
(2) | Maturity reference is to the earlier "expected final maturity date" as opposed to the subsequent "legal final maturity date." The expected final maturity date is the date by which Hertz and investors in the relevant indebtedness expect the outstanding principal of the relevant indebtedness to be repaid in full. The legal final maturity date is the date on which the outstanding principal of the relevant indebtedness is legally due and payable in full. |
(3) | In the case of the Hertz Fleet Lease Funding LP ("HFLF") Medium Term Notes, such notes are repayable from cash flows derived from third-party leases comprising the underlying HFLF collateral pool. The initial maturity date referenced for each series of HFLF Medium Term Notes represents the end of the revolving period for such series, at which time the related notes begin to amortize monthly by an amount equal to the lease collections payable to that series. To the extent the revolving period already has ended, the initial maturity date reflected is April 2019. The second maturity date referenced for each series of HFLF Medium Term Notes represents the date by which Hertz and the investors in the related series expect such series of notes to be repaid in full, which is based upon various assumptions made at the time of pricing of such notes, including the contractual amortization of the underlying leases as well as the assumed rate of prepayments of such leases. Such maturity reference is to the “expected final maturity date” as opposed to the subsequent “legal final maturity date.” The legal final maturity date is the date on which the relevant indebtedness is legally due and payable. Although the underlying lease cash flows that support the repayment of the HFLF Medium Term Notes may vary, the cash flows generally are expected to approximate a straight-line amortization of the related notes from the initial maturity date through the expected final maturity date. |
(4) | References to the "European Vehicle Notes" include the series of Hertz Holdings Netherlands B.V.'s, an indirect wholly owned subsidiary of Hertz organized under the laws of the Netherlands (“HHN BV”), unsecured senior notes (converted from Euros to U.S. dollars at a rate of 1.12 to 1 and 1.14 to 1 as of March 31, 2019 and December 31, 2018, respectively) set forth in the table below. Outstanding principal amounts for each such series of the European Vehicle Notes is also specified below: |
(In millions) | Outstanding Principal | ||||||
European Vehicle Notes | March 31, 2019 | December 31, 2018 | |||||
4.125% Senior Notes due October 2021 | $ | 253 | $ | 257 | |||
5.500% Senior Notes due March 2023 | 562 | 572 | |||||
$ | 815 | $ | 829 |
(In millions) | Remaining Capacity | Availability Under Borrowing Base Limitation | |||||
Non-Vehicle Debt | |||||||
Senior RCF | $ | 459 | $ | 459 | |||
Letter of Credit Facility | 2 | 2 | |||||
Total Non-Vehicle Debt | 461 | 461 | |||||
Vehicle Debt | |||||||
U.S. Vehicle RCF | — | — | |||||
HVF II U.S. Vehicle Variable Funding Notes | 995 | — | |||||
HFLF Variable Funding Notes | 18 | 2 | |||||
European ABS | 540 | 68 | |||||
Canadian Securitization | — | — | |||||
Australian Securitization | 22 | — | |||||
U.K. Financing Facility | 85 | — | |||||
New Zealand RCF | — | — | |||||
Total Vehicle Debt | 1,660 | 70 | |||||
Total | $ | 2,121 | $ | 531 |
• | The lease transfers ownership of the underlying asset to the lessee by the end of the lease term; |
• | The lease grants the lessee an option to purchase the underlying asset that the Company is reasonably certain to exercise; |
• | The lease term is for 75% or more of the remaining economic life of the underlying asset, unless the commencement date falls within the last 25% of the economic life of the underlying asset; |
• | The present value of the sum of the lease payments equals or exceeds 90% of the fair value of the underlying asset; or |
• | The underlying asset is of such a specialized nature that it is expected to have no alternative use to the lessor at the end of the lease term. |
(In millions) | Three Months Ended March 31, 2019 | ||
Operating lease income from vehicle rentals | $ | 1,800 | |
Operating lease income from fleet leasing | 158 | ||
Variable operating lease income | 67 | ||
Revenue accounted for under Topic 842 | 2,025 | ||
Revenue accounted for under Topic 606 | 82 | ||
Total revenues | $ | 2,107 |
• | Concession agreements which grant the Company the right to conduct its vehicle rental operations at airports, hotels and train stations and to use building space such as terminal counters and parking garages; |
• | Real estate leases for its off airport vehicle rental locations and other premises; |
• | Revenue earning vehicle leases; and |
• | Other equipment leases. |
• | Operating expenses, such as common area charges, real estate taxes and insurance; |
• | A percentage of revenues or sales arising at the relevant premises; and/or |
• | Periodic inflation adjustments. |
(In millions) | Three Months Ended March 31, 2019 | Year Ended December 31, 2018 | |||||
Minimum fixed lease costs(1): | |||||||
Short-term lease costs | $ | 30 | N/A | ||||
Other operating lease costs | 134 | N/A | |||||
Total | $ | 164 | $ | 577 | |||
Variable lease costs | 63 | 438 | |||||
Total lease costs | $ | 227 | $ | 1,015 |
As of March 31, 2019 | ||
Weighted average remaining lease term (in years) | 9 | |
Weighted average discount rate | 10.9 | % |
(In millions) | |||
April 1, 2019 - March 31, 2020 | $ | 465 | |
April 1, 2020 - March 31, 2021 | 379 | ||
April 1, 2021 - March 31, 2022 | 305 | ||
April 1, 2022 - March 31, 2023 | 226 | ||
April 1, 2023 - March 31, 2024 | 166 | ||
After March 31, 2024 | 930 | ||
Total lease payments | 2,471 | ||
Interest | (958 | ) | |
Operating lease liabilities at March 31, 2019 | $ | 1,513 |
Three Months Ended March 31, | |||||||
(In millions, except per share data) | 2019 | 2018 | |||||
Basic and diluted earnings (loss) per share: | |||||||
Numerator: | |||||||
Net income (loss) | $ | (148 | ) | $ | (202 | ) | |
Net (income) loss attributable to noncontrolling interests | 1 | — | |||||
Net income (loss) attributable to Hertz Global | $ | (147 | ) | $ | (202 | ) | |
Denominator: | |||||||
Basic weighted average shares outstanding | 84 | 83 | |||||
Dilutive stock options, RSUs and PSUs | — | — | |||||
Weighted average shares used to calculate diluted earnings (loss) per share | 84 | 83 | |||||
Antidilutive stock options, RSUs, PSUs and PSAs | 2 | 3 | |||||
Earnings (loss) per share: | |||||||
Basic earnings (loss) per share | $ | (1.75 | ) | $ | (2.43 | ) | |
Diluted earnings (loss) per share | $ | (1.75 | ) | $ | (2.43 | ) |
March 31, 2019 | December 31, 2018 | ||||||||||||||||||||||||||||||
(In millions) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||
Money market funds and time deposits | $ | 250 | $ | — | $ | — | $ | 250 | $ | 701 | $ | — | $ | — | $ | 701 | |||||||||||||||
Equity securities | 55 | — | — | 55 | 44 | — | — | 44 |
As of March 31, 2019 | As of December 31, 2018 | ||||||||||||||
(In millions) | Nominal Unpaid Principal Balance | Aggregate Fair Value | Nominal Unpaid Principal Balance | Aggregate Fair Value | |||||||||||
Non-Vehicle Debt | $ | 4,460 | $ | 4,304 | $ | 4,455 | $ | 4,011 | |||||||
Vehicle Debt | 12,870 | 12,885 | 11,945 | 11,891 | |||||||||||
Total | $ | 17,330 | $ | 17,189 | $ | 16,400 | $ | 15,902 |
• | U.S. Rental Car ("U.S. RAC") - rental of vehicles (cars, crossovers and light trucks), as well as sales of value-added services, in the U.S. and consists of the Company's U.S. operating segment; |
• | International Rental Car ("International RAC") - rental and leasing of vehicles (cars, vans, crossovers and light trucks), as well as sales of value-added services, internationally and consists of the Company's Europe and Other International operating segments, which are aggregated into a reportable segment based primarily upon similar economic characteristics, products and services, customers, delivery methods and general regulatory environments; |
• | All Other Operations - primarily consists of the Company's Donlen business, which provides vehicle leasing and fleet management services, together with other business activities which represent less than 1% of revenues and expenses of the segment. |
Three Months Ended March 31, | |||||||
(In millions) | 2019 | 2018 | |||||
Revenues | |||||||
U.S. Rental Car | $ | 1,520 | $ | 1,426 | |||
International Rental Car | 433 | 468 | |||||
All Other Operations | 154 | 169 | |||||
Total Hertz Global and Hertz | $ | 2,107 | $ | 2,063 | |||
Depreciation of revenue earning vehicles and lease charges | |||||||
U.S. Rental Car | $ | 386 | $ | 434 | |||
International Rental Car | 97 | 102 | |||||
All Other Operations | 109 | 125 | |||||
Total Hertz Global and Hertz | $ | 592 | $ | 661 | |||
Adjusted Pre-tax Income (Loss)(a) | |||||||
U.S. Rental Car | $ | 25 | $ | (48 | ) | ||
International Rental Car | (18 | ) | (6 | ) | |||
All Other Operations | 25 | 22 | |||||
Corporate | (143 | ) | (143 | ) | |||
Total Hertz Global | (111 | ) | (175 | ) | |||
Corporate - Hertz | 2 | 1 | |||||
Total Hertz | $ | (109 | ) | $ | (174 | ) |
(In millions) | March 31, 2019 | December 31, 2018 | |||||
Total assets | |||||||
U.S. Rental Car | $ | 16,375 | $ | 13,983 | |||
International Rental Car | 4,590 | 4,057 | |||||
All Other Operations | 1,934 | 1,843 | |||||
Corporate | 1,131 | 1,499 | |||||
Total Hertz Global and Hertz | $ | 24,030 | $ | 21,382 |
(a) | Adjusted Pre-tax Income (Loss), the Company's segment profitability measure, is calculated as income (loss) before income taxes plus non-cash acquisition accounting charges, debt-related charges relating to the amortization and write-off of debt financing costs and debt discounts and premiums, goodwill, intangible and tangible asset impairments and write downs, information technology and finance transformation costs, income or loss attributable to noncontrolling interests, and certain other miscellaneous or non-recurring items. |
Three Months Ended March 31, | |||||||
(In millions) | 2019 | 2018 | |||||
Adjusted Pre-tax Income (Loss): | |||||||
U.S. Rental Car | $ | 25 | $ | (48 | ) | ||
International Rental Car | (18 | ) | (6 | ) | |||
All Other Operations | 25 | 22 | |||||
Total reportable segments | 32 | (32 | ) | ||||
Corporate(1) | (143 | ) | (143 | ) | |||
Adjusted Pre-tax Income (Loss) | (111 | ) | (175 | ) | |||
Adjustments: | |||||||
Acquisition accounting(2) | (14 | ) | (15 | ) | |||
Debt-related charges(3) | (14 | ) | (16 | ) | |||
Restructuring and restructuring related charges(4) | (7 | ) | (4 | ) | |||
Information technology and finance transformation costs(5) | (23 | ) | (23 | ) | |||
Other(6) | 20 | 2 | |||||
Income (loss) before income taxes | $ | (149 | ) | $ | (231 | ) |
Three Months Ended March 31, | |||||||
(In millions) | 2019 | 2018 | |||||
Adjusted Pre-tax Income (Loss): | |||||||
U.S. Rental Car | $ | 25 | $ | (48 | ) | ||
International Rental Car | (18 | ) | (6 | ) | |||
All Other Operations | 25 | 22 | |||||
Total reportable segments | 32 | (32 | ) | ||||
Corporate(1) | (141 | ) | (142 | ) | |||
Adjusted Pre-tax Income (Loss) | (109 | ) | (174 | ) | |||
Adjustments: | |||||||
Acquisition accounting(2) | (14 | ) | (15 | ) | |||
Debt-related charges(3) | (14 | ) | (16 | ) | |||
Restructuring and restructuring related charges(4) | (7 | ) | (4 | ) | |||
Information technology and finance transformation costs(5) | (23 | ) | (23 | ) | |||
Other(6) | 20 | 2 | |||||
Income (loss) before income taxes | $ | (147 | ) | $ | (230 | ) |
(1) | Represents general corporate expenses, non-vehicle interest expense, as well as other business activities. |
(2) | Represents incremental expense associated with amortization of other intangible assets and depreciation of property and equipment relating to acquisition accounting. |
(3) | Represents debt-related charges relating to the amortization of deferred financing costs and debt discounts and premiums. |
(4) | Represents charges incurred under restructuring actions as defined in U.S. GAAP, excluding impairments and asset write-downs. Also includes restructuring related charges such as incremental costs incurred directly supporting business transformation initiatives. Such costs include transition costs incurred in connection with business process outsourcing arrangements and incremental costs incurred to facilitate business process re-engineering initiatives that involve significant organization redesign and extensive operational process changes. In 2018, also includes consulting costs, legal fees, and other expenses related to the previously disclosed accounting review and investigation. |
(5) | Represents costs associated with the Company’s information technology and finance transformation programs, both of which are multi-year initiatives to upgrade and modernize the Company’s systems and processes. |
(6) | Represents miscellaneous or non-recurring items, and includes amounts attributable to noncontrolling interests. In 2019, also includes an $11 million gain on marketable securities, and an $8 million gain on the sale of non-vehicle capital assets. |
Parent (The Hertz Corporation) | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | The Hertz Corporation & Subsidiaries | |||||||||||||||
ASSETS | |||||||||||||||||||
Cash and cash equivalents | $ | 173 | $ | 3 | $ | 378 | $ | — | $ | 554 | |||||||||
Restricted cash and cash equivalents | 130 | 11 | 311 | — | 452 | ||||||||||||||
Total cash, cash equivalents, restricted cash and restricted cash equivalents | 303 | 14 | 689 | — | 1,006 | ||||||||||||||
Receivables, net of allowance | 461 | 167 | 935 | — | 1,563 | ||||||||||||||
Due from affiliates | 3,224 | 4,138 | 7,505 | (14,867 | ) | — | |||||||||||||
Prepaid expenses and other assets | 5,085 | 28 | 300 | (4,306 | ) | 1,107 | |||||||||||||
Revenue earning vehicles, net | 268 | — | 13,500 | — | 13,768 | ||||||||||||||
Property and equipment, net | 611 | 62 | 98 | — | 771 | ||||||||||||||
Operating lease right-of-use assets | 943 | 198 | 373 | — | 1,514 | ||||||||||||||
Investment in subsidiaries, net | 7,569 | 1,560 | — | (9,129 | ) | — | |||||||||||||
Intangible assets, net | 188 | 3,026 | 4 | — | 3,218 | ||||||||||||||
Goodwill | 102 | 943 | 38 | — | 1,083 | ||||||||||||||
Total assets | $ | 18,754 | $ | 10,136 | $ | 23,442 | $ | (28,302 | ) | $ | 24,030 | ||||||||
LIABILITIES AND STOCKHOLDER'S EQUITY | |||||||||||||||||||
Due to affiliates | $ | 10,833 | $ | 990 | $ | 3,044 | $ | (14,867 | ) | $ | — | ||||||||
Accounts payable | 395 | 112 | 772 | — | 1,279 | ||||||||||||||
Accrued liabilities | 824 | 50 | 456 | — | 1,330 | ||||||||||||||
Accrued taxes, net | 81 | 17 | 2,389 | (2,341 | ) | 146 | |||||||||||||
Debt | 4,575 | — | 12,682 | — | 17,257 | ||||||||||||||
Operating lease liabilities | 940 | 199 | 374 | — | 1,513 | ||||||||||||||
Public liability and property damage | 186 | 41 | 184 | — | 411 | ||||||||||||||
Deferred income taxes, net | — | 1,732 | 1,324 | (1,965 | ) | 1,091 | |||||||||||||
Total liabilities | 17,834 | 3,141 | 21,225 | (19,173 | ) | 23,027 | |||||||||||||
Stockholder's equity: | |||||||||||||||||||
Total stockholder's equity attributable to Hertz | 920 | 6,995 | 2,134 | (9,129 | ) | 920 | |||||||||||||
Noncontrolling interests | — | — | 83 | — | 83 | ||||||||||||||
Total stockholder's equity | 920 | 6,995 | 2,217 | (9,129 | ) | 1,003 | |||||||||||||
Total liabilities and stockholder's equity | $ | 18,754 | $ | 10,136 | $ | 23,442 | $ | (28,302 | ) | $ | 24,030 |
Parent (The Hertz Corporation) | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | The Hertz Corporation & Subsidiaries | |||||||||||||||
ASSETS | |||||||||||||||||||
Cash and cash equivalents | $ | 576 | $ | 3 | $ | 548 | $ | — | $ | 1,127 | |||||||||
Restricted cash and cash equivalents | 137 | 8 | 138 | — | 283 | ||||||||||||||
Total cash, cash equivalents, restricted cash and restricted cash equivalents | 713 | 11 | 686 | — | 1,410 | ||||||||||||||
Receivables, net of allowance | 421 | 174 | 992 | — | 1,587 | ||||||||||||||
Due from affiliates | 3,522 | 5,312 | 9,101 | (17,935 | ) | — | |||||||||||||
Prepaid expenses and other assets | 4,863 | 34 | 269 | (4,264 | ) | 902 | |||||||||||||
Revenue earning vehicles, net | 421 | 1 | 11,997 | — | 12,419 | ||||||||||||||
Property and equipment, net | 590 | 64 | 124 | — | 778 | ||||||||||||||
Investment in subsidiaries, net | 7,648 | 1,526 | — | (9,174 | ) | — | |||||||||||||
Intangible assets, net | 160 | 3,039 | 4 | — | 3,203 | ||||||||||||||
Goodwill | 102 | 943 | 38 | — | 1,083 | ||||||||||||||
Total assets | $ | 18,440 | $ | 11,104 | $ | 23,211 | $ | (31,373 | ) | $ | 21,382 | ||||||||
LIABILITIES AND STOCKHOLDER'S EQUITY | |||||||||||||||||||
Due to affiliates | $ | 11,351 | $ | 2,306 | $ | 4,278 | $ | (17,935 | ) | $ | — | ||||||||
Accounts payable | 388 | 97 | 503 | — | 988 | ||||||||||||||
Accrued liabilities | 823 | 69 | 412 | — | 1,304 | ||||||||||||||
Accrued taxes, net | 67 | 15 | 2,359 | (2,305 | ) | 136 | |||||||||||||
Debt | 4,567 | — | 11,757 | — | 16,324 | ||||||||||||||
Public liability and property damage | 185 | 41 | 192 | — | 418 | ||||||||||||||
Deferred income taxes, net | — | 1,729 | 1,324 | (1,959 | ) | 1,094 | |||||||||||||
Total liabilities | 17,381 | 4,257 | 20,825 | (22,199 | ) | 20,264 | |||||||||||||
Stockholder's equity: | |||||||||||||||||||
Total stockholder's equity attributable to Hertz | 1,059 | 6,847 | 2,327 | (9,174 | ) | 1,059 | |||||||||||||
Noncontrolling interests | — | — | 59 | — | 59 | ||||||||||||||
Total stockholder's equity | 1,059 | 6,847 | 2,386 | (9,174 | ) | 1,118 | |||||||||||||
Total liabilities and stockholder's equity | $ | 18,440 | $ | 11,104 | $ | 23,211 | $ | (31,373 | ) | $ | 21,382 |
Parent (The Hertz Corporation) | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | The Hertz Corporation & Subsidiaries | |||||||||||||||
Total revenues | $ | 1,151 | $ | 320 | $ | 2,074 | $ | (1,438 | ) | $ | 2,107 | ||||||||
Expenses: | |||||||||||||||||||
Direct vehicle and operating | 812 | 157 | 297 | — | 1,266 | ||||||||||||||
Depreciation of revenue earning vehicles and lease charges | 1,394 | 74 | 562 | (1,438 | ) | 592 | |||||||||||||
Selling, general and administrative | 157 | 16 | 61 | — | 234 | ||||||||||||||
Interest (income) expense, net | 107 | (46 | ) | 120 | — | 181 | |||||||||||||
Other (income) expense, net | (19 | ) | — | — | — | (19 | ) | ||||||||||||
Total expenses | 2,451 | 201 | 1,040 | (1,438 | ) | 2,254 | |||||||||||||
Income (loss) before income taxes and equity in earnings (losses) of subsidiaries | (1,300 | ) | 119 | 1,034 | — | (147 | ) | ||||||||||||
Income tax (provision) benefit | 42 | (4 | ) | (37 | ) | — | 1 | ||||||||||||
Equity in earnings (losses) of subsidiaries, net of tax | 1,112 | 25 | — | (1,137 | ) | — | |||||||||||||
Net income (loss) | (146 | ) | 140 | 997 | (1,137 | ) | (146 | ) | |||||||||||
Net (income) loss attributable to noncontrolling interests | — | — | 1 | — | 1 | ||||||||||||||
Net income (loss) attributable to Hertz | (146 | ) | 140 | 998 | (1,137 | ) | (145 | ) | |||||||||||
Total other comprehensive income (loss), net of tax | 8 | 2 | 6 | (9 | ) | 7 | |||||||||||||
Comprehensive income (loss) attributable to Hertz | $ | (138 | ) | $ | 142 | $ | 1,004 | $ | (1,146 | ) | $ | (138 | ) |
Parent (The Hertz Corporation) | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | The Hertz Corporation & Subsidiaries | |||||||||||||||
Total revenues | $ | 1,056 | $ | 319 | $ | 1,489 | $ | (801 | ) | $ | 2,063 | ||||||||
Expenses: | |||||||||||||||||||
Direct vehicle and operating | 751 | 172 | 313 | — | 1,236 | ||||||||||||||
Depreciation of revenue earning vehicles and lease charges | 766 | 84 | 612 | (801 | ) | 661 | |||||||||||||
Selling, general and administrative | 161 | 12 | 61 | — | 234 | ||||||||||||||
Interest (income) expense, net | 102 | (33 | ) | 96 | — | 165 | |||||||||||||
Other (income) expense, net | (2 | ) | — | (1 | ) | — | (3 | ) | |||||||||||
Total expenses | 1,778 | 235 | 1,081 | (801 | ) | 2,293 | |||||||||||||
Income (loss) before income taxes and equity in earnings (losses) of subsidiaries | (722 | ) | 84 | 408 | — | (230 | ) | ||||||||||||
Income tax (provision) benefit | 122 | (14 | ) | (79 | ) | — | 29 | ||||||||||||
Equity in earnings (losses) of subsidiaries, net of tax | 399 | 25 | — | (424 | ) | — | |||||||||||||
Net income (loss) | (201 | ) | 95 | 329 | (424 | ) | (201 | ) | |||||||||||
Total other comprehensive income (loss), net of tax | (3 | ) | (2 | ) | (3 | ) | 5 | (3 | ) | ||||||||||
Comprehensive income (loss) | $ | (204 | ) | $ | 93 | $ | 326 | $ | (419 | ) | $ | (204 | ) |
Parent (The Hertz Corporation) | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | The Hertz Corporation & Subsidiaries | |||||||||||||||
Net cash provided by (used in) operating activities | $ | 83 | $ | 5 | $ | 1,421 | $ | (993 | ) | $ | 516 | ||||||||
Cash flows from investing activities: | |||||||||||||||||||
Revenue earning vehicles expenditures | (102 | ) | — | (3,871 | ) | — | (3,973 | ) | |||||||||||
Proceeds from disposal of revenue earning vehicles | 48 | — | 2,105 | — | 2,153 | ||||||||||||||
Capital asset expenditures, non-vehicle | (45 | ) | (2 | ) | (7 | ) | — | (54 | ) | ||||||||||
Proceeds from property and other equipment disposed of or to be disposed of | 17 | — | 2 | — | 19 | ||||||||||||||
Capital contributions to subsidiaries | (376 | ) | — | — | 376 | — | |||||||||||||
Return of capital from subsidiaries | 406 | — | — | (406 | ) | — | |||||||||||||
Proceeds from/repayments of intercompany loan | — | — | 434 | (434 | ) | — | |||||||||||||
Net cash provided by (used in) investing activities | (52 | ) | (2 | ) | (1,337 | ) | (464 | ) | (1,855 | ) | |||||||||
Cash flows from financing activities: | |||||||||||||||||||
Proceeds from issuance of vehicle debt | 195 | — | 3,472 | — | 3,667 | ||||||||||||||
Repayments of vehicle debt | (195 | ) | — | (2,541 | ) | — | (2,736 | ) | |||||||||||
Proceeds from issuance of non-vehicle debt | 341 | — | — | — | 341 | ||||||||||||||
Repayments of non-vehicle debt | (344 | ) | — | — | — | (344 | ) | ||||||||||||
Payment of financing costs | — | — | (12 | ) | — | (12 | ) | ||||||||||||
Advances to Hertz Holdings | (4 | ) | — | — | — | (4 | ) | ||||||||||||
Contributions from noncontrolling interests | — | — | 25 | — | 25 | ||||||||||||||
Capital contributions received from parent | — | — | 376 | (376 | ) | — | |||||||||||||
Payment of dividends and return of capital | — | — | (1,399 | ) | 1,399 | — | |||||||||||||
Proceeds from/repayments of intercompany loan | (434 | ) | — | — | 434 | — | |||||||||||||
Net cash provided by (used in) financing activities | (441 | ) | — | (79 | ) | 1,457 | 937 | ||||||||||||
Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents | — | — | (2 | ) | — | (2 | ) | ||||||||||||
Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents during the period | (410 | ) | 3 | 3 | — | (404 | ) | ||||||||||||
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period | 713 | 11 | 686 | — | 1,410 | ||||||||||||||
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period | $ | 303 | $ | 14 | $ | 689 | $ | — | $ | 1,006 |
Parent (The Hertz Corporation) | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | The Hertz Corporation & Subsidiaries | |||||||||||||||
Net cash provided by (used in) operating activities | $ | (221 | ) | $ | 7 | $ | 957 | $ | (341 | ) | $ | 402 | |||||||
Cash flows from investing activities: | |||||||||||||||||||
Revenue earning vehicles expenditures | (129 | ) | — | (3,436 | ) | — | (3,565 | ) | |||||||||||
Proceeds from disposal of revenue earning vehicles | 48 | — | 1,734 | — | 1,782 | ||||||||||||||
Capital asset expenditures, non-vehicle | (28 | ) | (3 | ) | (13 | ) | — | (44 | ) | ||||||||||
Proceeds from property and other equipment disposed of or to be disposed of | — | — | 4 | — | 4 | ||||||||||||||
Other | (24 | ) | — | (3 | ) | — | (27 | ) | |||||||||||
Capital contributions to subsidiaries | (877 | ) | — | — | 877 | — | |||||||||||||
Return of capital from subsidiaries | 1,307 | — | — | (1,307 | ) | — | |||||||||||||
Proceeds from/repayments of intercompany loan | — | — | 235 | (235 | ) | — | |||||||||||||
Net cash provided by (used in) investing activities | 297 | (3 | ) | (1,479 | ) | (665 | ) | (1,850 | ) | ||||||||||
Cash flows from financing activities: | |||||||||||||||||||
Proceeds from issuance of vehicle debt | 554 | — | 4,627 | — | 5,181 | ||||||||||||||
Repayments of vehicle debt | (607 | ) | — | (2,676 | ) | — | (3,283 | ) | |||||||||||
Proceeds from issuance of non-vehicle debt | 127 | — | — | — | 127 | ||||||||||||||
Repayments of non-vehicle debt | (131 | ) | — | — | — | (131 | ) | ||||||||||||
Payment of financing costs | (1 | ) | — | (18 | ) | — | (19 | ) | |||||||||||
Advances to Hertz Holdings | (4 | ) | — | — | — | (4 | ) | ||||||||||||
Contributions from noncontrolling interests | — | — | 5 | — | 5 | ||||||||||||||
Capital contributions received from parent | — | — | 877 | (877 | ) | — | |||||||||||||
Payment of dividends and return of capital | — | — | (1,648 | ) | 1,648 | — | |||||||||||||
Proceeds from/repayments of intercompany loan | (235 | ) | — | — | 235 | — | |||||||||||||
Net cash provided by (used in) financing activities | (297 | ) | — | 1,167 | 1,006 | 1,876 | |||||||||||||
Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents | — | — | 8 | — | 8 | ||||||||||||||
Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents during the period | (221 | ) | 4 | 653 | — | 436 | |||||||||||||
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period | 911 | 16 | 577 | — | 1,504 | ||||||||||||||
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period | $ | 690 | $ | 20 | $ | 1,230 | $ | — | $ | 1,940 |
ITEM 2. | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
• | Adjusted Pre-tax Income (Loss) - important to management because it allows management to assess the operational performance of our business, exclusive of certain items, and allows management to assess the performance of the entire business on the same basis as the segment measure of profitability. Management believes that it is important to investors for the same reasons it is important to management and because it allows them to assess our operational performance on the same basis that management uses internally. |
• | Depreciation Per Unit Per Month - important to management and investors as depreciation of revenue earning vehicles and lease charges is one of our largest expenses for the vehicle rental business and is driven by the number of vehicles, expected residual values at the expected time of disposal and expected hold period of the vehicles. Depreciation Per Unit Per Month is reflective of how we are managing the costs of our vehicles and facilitates a comparison with other participants in the vehicle rental industry. |
• | Total Revenue Per Transaction Day ("Total RPD," also referred to as "pricing") - important to management and investors as it represents a measurement of the changes in underlying pricing in the vehicle rental business and encompasses the elements in vehicle rental pricing that management has the ability to control. |
• | Total Revenue Per Unit Per Month ("Total RPU") - important to management and investors as it provides a measure of revenue productivity relative to the total number of vehicles in our fleet whether owned or leased ("Average Vehicles" or "fleet capacity"). |
• | Transaction Days - important to management and investors as it represents the number of revenue generating days ("volume"). It is used as a component to measure Total RPD and Vehicle Utilization. Transaction Days represent the total number of 24-hour periods, with any partial period counted as one Transaction Day, that vehicles were on rent (the period between when a rental contract is opened and closed) in a given period. Thus, it is possible for a vehicle to attain more than one Transaction Day in a 24-hour period. |
• | Vehicle Utilization - important to management and investors because it is the measurement of the proportion of our vehicles that are being used to generate revenues relative to fleet capacity. Higher Vehicle Utilization means more vehicles are being utilized to generate revenue. |
ITEM 2. | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED) |
• | Worldwide vehicle rental revenues - revenues from all company-operated vehicle rental operations, including charges to customers for the reimbursement of costs incurred relating to airport concession fees and vehicle license fees, the fueling of vehicles and revenues associated with value-added services, including the sale of loss or collision damage waivers, liability insurance coverage, parking and other products and fees. Also included are ancillary revenues associated with retail vehicle sales and certain royalty fees from our franchisees (such fees are less than 2% of total revenues each period); and |
• | All other operations revenues - revenues from vehicle leasing and fleet management services by our Donlen business and other business activities. |
ITEM 2. | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED) |
• | Direct vehicle and operating expense ("DOE") (primarily wages and related benefits; commissions and concession fees paid to airport authorities, travel agents and others; facility, self-insurance and reservation costs; and other costs relating to the operation and rental of revenue earning vehicles, such as damage, maintenance and fuel costs); |
• | Depreciation expense and lease charges relating to revenue earning vehicles; |
• | Selling, general and administrative expense ("SG&A"), which includes costs for information technology and finance transformation programs; and |
• | Interest expense, net. |
• | U.S. RAC - Rental of vehicles, as well as sales of value-added services, in the U.S.; |
• | International RAC - Rental and leasing of vehicles, as well as sales of value-added services, internationally; and |
• | All Other Operations - Comprised primarily of our Donlen business, which provides vehicle leasing and fleet management services, and other business activities. |
ITEM 2. | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED) |
ITEM 2. | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED) |
• | U.S. RAC |
◦ | 1Q 2019 versus 1Q 2018: |
▪ | Total revenues increased $94 million, or 7% |
▪ | Total RPD and Total RPU increased 2% |
▪ | Transaction Days increased 4% |
▪ | Depreciation of revenue earning vehicles and lease charges decreased 11% to $386 million |
▪ | Depreciation Per Unit Per Month decreased 15% to $256 |
▪ | Vehicle Utilization was comparable at 79% |
▪ | DOE as a percentage of total revenues decreased 80 bps (64% versus 65%) |
▪ | SG&A as a percentage of total revenues increased 100 bps (8% versus 7%) |
◦ | 1Q 2019 versus 1Q 2018: |
▪ | Total revenues decreased $35 million, or 7%, and were flat, excluding the impact of foreign currency exchange at average rates ("fx") |
▪ | Total RPD decreased 2%, and Total RPU decreased 3% |
▪ | Transaction Days increased 2% |
▪ | Depreciation of revenue earning vehicles and lease charges decreased 5% to $97 million, and increased $3 million, or 3%, excluding fx |
▪ | Depreciation Per Unit Per Month was comparable ($212 versus $211) |
▪ | Vehicle Utilization decreased 90 bps (74% versus 75%) |
▪ | DOE as a percentage of total revenues increased 150 bps (66% versus 64%). |
▪ | SG&A as a percentage of total revenues decreased 40 bps (12% versus 13%) |
• | Recorded $23 million in expenses during the first quarter of 2019 and 2018 associated with our information technology and finance transformation programs, both of which are multi-year initiatives to upgrade and modernize the company's systems and processes. |
ITEM 2. | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED) |
Three Months Ended March 31, | Percent Increase/(Decrease) | |||||||||
($ in millions) | 2019 | 2018 | ||||||||
Total revenues | $ | 2,107 | $ | 2,063 | 2 | % | ||||
Direct vehicle and operating expenses | 1,266 | 1,236 | 2 | |||||||
Depreciation of revenue earning vehicles and lease charges | 592 | 661 | (10 | ) | ||||||
Selling, general and administrative expenses | 234 | 234 | — | |||||||
Interest expense, net: | ||||||||||
Vehicle | 112 | 94 | 19 | |||||||
Non-vehicle | 69 | 71 | (3 | ) | ||||||
Interest expense, net | 181 | 165 | 10 | |||||||
Other (income) expense, net | (19 | ) | (3 | ) | NM | |||||
Income (loss) before income taxes | (147 | ) | (230 | ) | (36 | ) | ||||
Income tax (provision) benefit | 1 | 29 | (97 | ) | ||||||
Net income (loss) | (146 | ) | (201 | ) | (27 | ) | ||||
Net (income) loss attributable to noncontrolling interests | 1 | — | — | |||||||
Net income (loss) attributable to Hertz | $ | (145 | ) | $ | (201 | ) | (28 | ) | ||
Adjusted Pre-tax Income (Loss)(a) | $ | (109 | ) | $ | (174 | ) | (37 | ) |
ITEM 2. | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED) |
ITEM 2. | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED) |
Three Months Ended March 31, | Percent Increase/(Decrease) | ||||||||||
($ in millions, except as noted) | 2019 | 2018 | |||||||||
Total revenues | $ | 1,520 | $ | 1,426 | 7 | % | |||||
Depreciation of revenue earning vehicles and lease charges | $ | 386 | $ | 434 | (11 | )% | |||||
Direct vehicle and operating expenses | $ | 976 | $ | 927 | 5 | ||||||
Selling, general and administrative expenses | $ | 121 | $ | 99 | 22 | ||||||
Income (loss) before income taxes | $ | 14 | $ | (68 | ) | NM | |||||
Adjusted Pre-tax Income (Loss)(a) | $ | 25 | $ | (48 | ) | NM | |||||
Transaction Days (in thousands)(b) | 35,582 | 34,203 | 4 | ||||||||
Average Vehicles (in whole units)(c) | 501,767 | 478,600 | 5 | ||||||||
Vehicle Utilization(c) | 79 | % | 79 | % | (60 | ) | bps | ||||
Total RPD (in whole dollars)(d) | $ | 41.90 | $ | 40.93 | 2 | ||||||
Total RPU Per Month (in whole dollars)(e) | $ | 990 | $ | 975 | 2 | ||||||
Depreciation Per Unit Per Month (in whole dollars)(f) | $ | 256 | $ | 302 | (15 | ) | |||||
Percentage of program vehicles at period end | 9 | % | 9 | % | (90 | ) | bps |
ITEM 2. | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED) |
Three Months Ended March 31, | Percent Increase/(Decrease) | ||||||||||
($ in millions, except as noted) | 2019 | 2018 | |||||||||
Total revenues | $ | 433 | $ | 468 | (7 | )% | |||||
Depreciation of revenue earning vehicles and lease charges | $ | 97 | $ | 102 | (5 | ) | |||||
Direct vehicle and operating expenses | $ | 284 | $ | 300 | (5 | ) | |||||
Selling, general and administrative expenses | $ | 54 | $ | 60 | (10 | ) | |||||
Income (loss) before income taxes | $ | (24 | ) | $ | (12 | ) | 100 | ||||
Adjusted Pre-tax Income (loss)(a) | $ | (18 | ) | $ | (6 | ) | 200 | ||||
Transaction Days (in thousands)(b) | 10,127 | 9,974 | 2 | ||||||||
Average Vehicles (in whole units)(c) | 152,747 | 148,700 | 3 | ||||||||
Vehicle Utilization(c) | 74 | % | 75 | % | (90 | ) | bps | ||||
Total RPD (in whole dollars)(d) | $ | 42.56 | $ | 43.41 | (2 | ) | |||||
Total RPU Per Month (in whole dollars)(e) | $ | 941 | $ | 971 | (3 | ) | |||||
Depreciation Per Unit Per Month (in whole dollars)(f) | $ | 212 | $ | 211 | — | ||||||
Percentage of program vehicles at period end | 39 | % | 41 | % | (250 | ) | bps |
ITEM 2. | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED) |
Three Months Ended March 31, | Percent Increase/(Decrease) | |||||||||
($ in millions) | 2019 | 2018 | ||||||||
Total revenues | $ | 154 | $ | 169 | (9 | )% | ||||
Depreciation of revenue earning vehicles and lease charges | $ | 109 | $ | 125 | (13 | ) | ||||
Direct vehicle and operating expenses | $ | 6 | $ | 9 | (33 | ) | ||||
Selling, general and administrative expenses | $ | 7 | $ | 10 | (30 | ) | ||||
Income (loss) before income taxes | $ | 24 | $ | 19 | 26 | |||||
Adjusted Pre-tax Income (Loss)(a) | $ | 25 | $ | 22 | 14 | |||||
Average Vehicles - Donlen | 192,799 | 191,600 | 1 |
(a) | Adjusted Pre-tax Income (Loss) is calculated as income (loss) before income taxes plus non-cash acquisition accounting charges, debt-related charges relating to the amortization and write-off of debt financing costs and debt discounts and premiums, goodwill, intangible and tangible asset impairments and write downs, information technology and finance transformation costs, net income or loss attributable to noncontrolling interests, and certain other miscellaneous or non-recurring items. Adjusted Pre-tax Income (Loss) is important because it allows management to assess operational performance of our business, exclusive of the items mentioned above. It also allows management to assess the performance of the entire business on the same basis as the segment measure of profitability. Management believes that it is important to investors for the same reasons it is important to management and because it allows them to assess our operational performance on the same basis that management uses internally. When evaluating our operating performance, investors should not consider Adjusted Pre-tax Income (Loss) in isolation of, or as a substitute for, measures of our financial performance, such as net income (loss) or income (loss) before income taxes. The contribution of our reportable segments to Adjusted Pre-tax Income (Loss) and reconciliation to the most comparable consolidated U.S. GAAP measure are presented below: |
ITEM 2. | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED) |
Three Months Ended March 31, | |||||||
(In millions) | 2019 | 2018 | |||||
Adjusted Pre-tax Income (Loss): | |||||||
U.S. Rental Car | $ | 25 | $ | (48 | ) | ||
International Rental Car | (18 | ) | (6 | ) | |||
All Other Operations | 25 | 22 | |||||
Total reportable segments | 32 | (32 | ) | ||||
Corporate(1) | (141 | ) | (142 | ) | |||
Adjusted Pre-tax Income (Loss) | (109 | ) | (174 | ) | |||
Adjustments: | |||||||
Acquisition accounting(2) | (14 | ) | (15 | ) | |||
Debt-related charges(3) | (14 | ) | (16 | ) | |||
Restructuring and restructuring related charges(4) | (7 | ) | (4 | ) | |||
Information technology and finance transformation costs(5) | (23 | ) | (23 | ) | |||
Other(6) | 20 | 2 | |||||
Income (loss) before income taxes | $ | (147 | ) | $ | (230 | ) |
Three Months Ended March 31, | |||||||
(In millions) | 2019 | 2018 | |||||
Adjusted Pre-tax Income (Loss): | |||||||
U.S. Rental Car | $ | 25 | $ | (48 | ) | ||
International Rental Car | (18 | ) | (6 | ) | |||
All Other Operations | 25 | 22 | |||||
Total reportable segments | 32 | (32 | ) | ||||
Corporate(1) | (143 | ) | (143 | ) | |||
Adjusted Pre-tax Income (Loss) | (111 | ) | (175 | ) | |||
Adjustments: | |||||||
Acquisition accounting(2) | (14 | ) | (15 | ) | |||
Debt-related charges(3) | (14 | ) | (16 | ) | |||
Restructuring and restructuring related charges(4) | (7 | ) | (4 | ) | |||
Information technology and finance transformation costs(5) | (23 | ) | (23 | ) | |||
Other(6) | 20 | 2 | |||||
Income (loss) before income taxes | $ | (149 | ) | $ | (231 | ) |
(1) | Represents general corporate expenses, non-vehicle interest expense, as well as other business activities. |
(2) | Represents incremental expense associated with amortization of other intangible assets and depreciation of property and equipment relating to acquisition accounting. |
(3) | Represents debt-related charges relating to the amortization of deferred financing costs and debt discounts and premiums. |
(4) | Represents charges incurred under restructuring actions as defined in U.S. GAAP, excluding impairments and asset write-downs. Also includes restructuring related charges such as incremental costs incurred directly supporting business transformation initiatives. Such costs include transition costs incurred in connection with business process outsourcing arrangements and incremental costs incurred to facilitate business process re-engineering initiatives that involve significant organization redesign and extensive operational process changes. In 2018, also includes consulting costs, legal fees, and other expenses related to the previously disclosed accounting review and investigation. |
(5) | Represents costs associated with our information technology and finance transformation programs, both of which are multi-year initiatives to upgrade and modernize our systems and processes. |
(6) | Represents miscellaneous or non-recurring items, and includes amounts attributable to noncontrolling interests. In 2019, also includes an $11 million gain on marketable securities, and an $8 million gain on the sale of non-vehicle capital assets. |
ITEM 2. | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED) |
(b) | Transaction Days represent the total number of 24-hour periods, with any partial period counted as one Transaction Day, that vehicles were on rent (the period between when a rental contract is opened and closed) in a given period. Thus, it is possible for a vehicle to attain more than one Transaction Day in a 24-hour period. |
(c) | Average Vehicles are determined using a simple average of the number of vehicles at the beginning and end of a given period. Among other things, Average Vehicles is used to calculate our Vehicle Utilization which represents the portion of our vehicles that are being utilized to generate revenue. Vehicle Utilization is calculated by dividing total Transaction Days by Available Car Days. The calculation of Vehicle Utilization is shown in the table below: |
U.S. Rental Car | International Rental Car | ||||||||||
Three Months Ended March 31, | |||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||
Transaction Days (in thousands) | 35,582 | 34,203 | 10,127 | 9,974 | |||||||
Average Vehicles | 501,767 | 478,600 | 152,747 | 148,700 | |||||||
Number of days in period | 90 | 90 | 90 | 90 | |||||||
Available Car Days (in thousands) | 45,159 | 43,074 | 13,747 | 13,383 | |||||||
Vehicle Utilization | 79 | % | 79 | % | 74 | % | 75 | % |
(d) | Total RPD is calculated as total revenue less ancillary retail vehicle sales revenue, with all periods adjusted to eliminate the effect of fluctuations in foreign currency exchange rates ("Total Rental Revenue"), divided by the total number of Transaction Days. Our management believes eliminating the effect of fluctuations in foreign currency exchange rates is useful in analyzing underlying trends. The calculation of Total RPD is shown below: |
U.S. Rental Car | International Rental Car | ||||||||||||||
Three Months Ended March 31, | |||||||||||||||
($ in millions, except as noted) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Revenues | $ | 1,520 | $ | 1,426 | $ | 433 | $ | 468 | |||||||
Ancillary retail vehicle sales revenue | (29 | ) | (26 | ) | — | — | |||||||||
Foreign currency adjustment(1) | — | — | (2 | ) | (35 | ) | |||||||||
Total Rental Revenue | $ | 1,491 | $ | 1,400 | $ | 431 | $ | 433 | |||||||
Transaction Days (in thousands) | 35,582 | 34,203 | 10,127 | 9,974 | |||||||||||
Total RPD (in whole dollars) | $ | 41.90 | $ | 40.93 | $ | 42.56 | $ | 43.41 |
(1) | Based on December 31, 2018 foreign currency exchange rates for all periods presented. |
(e) | Total RPU is calculated as Total Rental Revenue divided by the Average Vehicles in each period and then divided by the number of months in the period reported. The calculation of Total RPU is shown below: |
U.S. Rental Car | International Rental Car | ||||||||||||||
Three Months Ended March 31, | |||||||||||||||
($ in millions, except as noted) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Total Rental Revenue | $ | 1,491 | $ | 1,400 | $ | 431 | $ | 433 | |||||||
Average Vehicles | 501,767 | 478,600 | 152,747 | 148,700 | |||||||||||
Total revenue per unit (in whole dollars) | $ | 2,971 | $ | 2,925 | $ | 2,822 | $ | 2,912 | |||||||
Number of months in period | 3 | 3 | 3 | 3 | |||||||||||
Total RPU Per Month (in whole dollars) | $ | 990 | $ | 975 | $ | 941 | $ | 971 |
ITEM 2. | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED) |
(f) | Depreciation Per Unit Per Month represents the amount of average depreciation expense and lease charges per vehicle per month and is calculated as depreciation of revenue earning vehicles and lease charges, with all periods adjusted to eliminate the effect of fluctuations in foreign currency exchange rates, divided by the Average Vehicles in each period and then dividing by the number of months in the period reported. Our management believes eliminating the effect of fluctuations in foreign currency exchange rates is useful in analyzing underlying trends. The calculation of Depreciation Per Unit Per Month is shown below: |
U.S. Rental Car | International Rental Car | ||||||||||||||
Three Months Ended March 31, | |||||||||||||||
($ in millions, except as noted) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Depreciation of revenue earning vehicles and lease charges | $ | 386 | $ | 434 | $ | 97 | $ | 102 | |||||||
Foreign currency adjustment(1) | — | — | — | (8 | ) | ||||||||||
Adjusted depreciation of revenue earning vehicles and lease charges | $ | 386 | $ | 434 | $ | 97 | $ | 94 | |||||||
Average Vehicles | 501,767 | 478,600 | 152,747 | 148,700 | |||||||||||
Adjusted depreciation of revenue earning vehicles and lease charges divided by Average Vehicles (in whole dollars) | $ | 769 | $ | 907 | $ | 635 | $ | 632 | |||||||
Number of months in period | 3 | 3 | 3 | 3 | |||||||||||
Depreciation Per Unit Per Month (in whole dollars) | $ | 256 | $ | 302 | $ | 212 | $ | 211 |
(1) | Based on December 31, 2018 foreign currency exchange rates for all periods presented. |
Three Months Ended March 31, | |||||||||||
(In millions) | 2019 | 2018 | $ Change | ||||||||
Cash provided by (used in): | |||||||||||
Operating activities | $ | 516 | $ | 402 | $ | 114 | |||||
Investing activities | (1,855 | ) | (1,850 | ) | (5 | ) | |||||
Financing activities | 937 | 1,876 | (939 | ) | |||||||
Effect of exchange rate changes | (2 | ) | 8 | (10 | ) | ||||||
Net change in cash, cash equivalents, restricted cash and restricted cash equivalents | $ | (404 | ) | $ | 436 | $ | (840 | ) |
ITEM 2. | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED) |
Three Months Ended March 31, | |||||||||||
(In millions) | 2019 | 2018 | $ Change | ||||||||
Cash provided by (used in): | |||||||||||
Operating activities | $ | 514 | $ | 401 | $ | 113 | |||||
Investing activities | (1,855 | ) | (1,850 | ) | (5 | ) | |||||
Financing activities | 939 | 1,877 | (938 | ) | |||||||
Effect of exchange rate changes | (2 | ) | 8 | (10 | ) | ||||||
Net change in cash, cash equivalents, restricted cash and restricted cash equivalents | $ | (404 | ) | $ | 436 | $ | (840 | ) |
ITEM 2. | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED) |
(In millions) | March 31, 2019 | December 31, 2018 | |||||
Cash and cash equivalents | $ | 554 | $ | 1,127 | |||
Availability under the Senior RCF | 459 | 496 | |||||
Corporate liquidity | $ | 1,013 | $ | 1,623 |
ITEM 2. | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED) |
Cash inflow (cash outflow) | Revenue Earning Vehicles | ||||||||||
(In millions) | Capital Expenditures | Disposal Proceeds | Net Capital Expenditures | ||||||||
2019 | |||||||||||
First Quarter | $ | (3,973 | ) | $ | 2,153 | $ | (1,820 | ) | |||
2018 | |||||||||||
First Quarter | $ | (3,565 | ) | $ | 1,782 | $ | (1,783 | ) |
Cash inflow (cash outflow) | Three Months Ended March 31, | |||||||||||||
($ in millions) | 2019 | 2018 | $ Change | % Change | ||||||||||
U.S. Rental Car | $ | (1,696 | ) | $ | (1,790 | ) | $ | 94 | (5 | )% | ||||
International Rental Car | 58 | 149 | (91 | ) | (61 | ) | ||||||||
All Other Operations | (182 | ) | (142 | ) | (40 | ) | 28 | |||||||
Total | $ | (1,820 | ) | $ | (1,783 | ) | $ | (37 | ) | 2 |
Cash inflow (cash outflow) | Capital Assets, Non-Vehicle | ||||||||||
(In millions) | Capital Expenditures | Disposal Proceeds | Net Capital Expenditures | ||||||||
2019 | |||||||||||
First Quarter | $ | (54 | ) | $ | 19 | $ | (35 | ) | |||
2018 | |||||||||||
First Quarter | $ | (44 | ) | $ | 4 | $ | (40 | ) |
Cash inflow (cash outflow) | Three Months Ended March 31, | |||||||||||||
($ in millions) | 2019 | 2018 | $ Change | % Change | ||||||||||
U.S. Rental Car | $ | (9 | ) | $ | (24 | ) | $ | 15 | (63 | )% | ||||
International Rental Car | (4 | ) | (4 | ) | — | — | ||||||||
All Other Operations | (1 | ) | (1 | ) | — | — | ||||||||
Corporate | (21 | ) | (11 | ) | (10 | ) | 91 | |||||||
Total | $ | (35 | ) | $ | (40 | ) | $ | 5 | (13 | ) |
ITEM 2. | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED) |
• | levels of travel demand, particularly with respect to airline passenger traffic in the United States and in global markets; |
• | the effect of our separation of our vehicle and equipment rental businesses, any failure by Herc Holdings Inc. to comply with the agreements entered into in connection with the separation and our ability to obtain the expected benefits of the separation; |
• | significant changes in the competitive environment and the effect of competition in our markets on rental volume and pricing, including on our pricing policies or use of incentives; |
• | occurrences that disrupt rental activity during our peak periods; |
ITEM 2. | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED) |
• | our ability to accurately estimate future levels of rental activity and adjust the number and mix of vehicles used in our rental operations accordingly; |
• | increased vehicle costs due to declines in the value of our non-program vehicles; |
• | our ability to maintain sufficient liquidity and the availability to us of additional or continued sources of financing for our revenue earning vehicles and to refinance our existing indebtedness; |
• | our ability to purchase adequate supplies of competitively priced vehicles and risks relating to increases in the cost of the vehicles we purchase; |
• | our ability to adequately respond to changes in technology and customer demands; |
• | our ability to retain customer loyalty and market share; |
• | our recognition of previously deferred tax gains on the disposition of revenue earning vehicles; |
• | an increase in our vehicle costs or disruption to our rental activity, particularly during our peak periods, due to safety recalls by the manufacturers of our vehicles; |
• | our access to third-party distribution channels and related prices, commission structures and transaction volumes; |
• | our ability to execute a business continuity plan; |
• | a major disruption in our communication or centralized information networks; |
• | a failure to maintain, upgrade and consolidate our information technology networks; |
• | financial instability of the manufacturers of our vehicles; |
• | any impact on us from the actions of our franchisees, dealers and independent contractors; |
• | our ability to sustain operations during adverse economic cycles and unfavorable external events (including war, terrorist acts, natural disasters and epidemic disease); |
• | shortages of fuel and increases or volatility in fuel costs; |
• | our ability to maintain favorable brand recognition and a coordinated branding and portfolio strategy; |
• | our ability to maintain an effective employee retention and talent management strategy and resulting changes in personnel and employee relations; |
• | costs and risks associated with litigation and investigations; |
• | risks related to our indebtedness, including our substantial amount of debt, our ability to incur substantially more debt, the fact that substantially all of our consolidated assets secure certain of our outstanding indebtedness and increases in interest rates or in our borrowing margins; |
• | our ability to meet the financial and other covenants contained in our senior credit facilities and letter of credit facility, our outstanding unsecured senior notes, our outstanding senior second priority secured notes and certain asset-backed and asset-based arrangements; |
• | changes in accounting principles, or their application or interpretation, and our ability to make accurate estimates and the assumptions underlying the estimates, which could have an effect on operating results; |
• | risks associated with operating in many different countries, including the risk of a violation or alleged violation of applicable anticorruption or antibribery laws and our ability to repatriate cash from non-U.S. affiliates without adverse tax consequences; |
• | our ability to prevent the misuse or theft of information we possess, including as a result of cyber security breaches and other security threats; |
ITEM 2. | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED) |
• | changes in the existing, or the adoption of new laws, regulations, policies or other activities of governments, agencies and similar organizations, such as the adoption of new regulations under the Tax Cuts and Jobs Act, where such actions may affect our operations, the cost thereof or applicable tax rates; |
• | risks relating to our deferred tax assets, including the risk of an "ownership change" under the Internal Revenue Code of 1986, as amended; |
• | our exposure to uninsured claims in excess of historical levels; |
• | fluctuations in interest rates and commodity prices; |
• | our exposure to fluctuations in foreign currency exchange rates; and |
• | other risks and uncertainties described from time to time in periodic and current reports that we file with the SEC. |
(a) | Exhibits: |
Date: | May 7, 2019 | HERTZ GLOBAL HOLDINGS, INC. THE HERTZ CORPORATION (Registrants) | |
By: | /s/ JAMERE JACKSON | ||
Jamere Jackson Executive Vice President and Chief Financial Officer |
Exhibit Number | Description | |
10.1 | Hertz Holdings Hertz | |
10.2 | Hertz Holdings Hertz | |
10.3 | Hertz Holdings Hertz | |
10.4 | Hertz Holdings Hertz | |
10.5 | Hertz Holdings Hertz | |
10.6 | Hertz Holdings Hertz | |
10.7 | Hertz Holdings Hertz | |
10.8 | Hertz Holdings Hertz | |
10.9 | Hertz Holdings Hertz | |
10.10 | Hertz Holdings Hertz | |
10.11 | Hertz Holdings Hertz | |
10.12 | Hertz Holdings Hertz | |
31.1 | Hertz Holdings | |
31.2 | Hertz Holdings | |
31.3 | Hertz | |
31.4 | Hertz | |
32.1 | Hertz Holdings | |
32.2 | Hertz Holdings | |
32.3 | Hertz | |
32.4 | Hertz | |
101.INS | Hertz Holdings Hertz | XBRL Instance Document* |
101.SCH | Hertz Holdings Hertz | XBRL Taxonomy Extension Schema Document* |
101.CAL | Hertz Holdings Hertz | XBRL Taxonomy Extension Calculation Linkbase Document* |
101.DEF | Hertz Holdings Hertz | XBRL Taxonomy Extension Definition Linkbase Document* |
101.LAB | Hertz Holdings Hertz | XBRL Taxonomy Extension Label Linkbase Document* |
101.PRE | Hertz Holdings Hertz | XBRL Taxonomy Extension Presentation Linkbase Document* |
A) | the acquisition by any person, entity or “group” (as defined in Section 13(d) of the Exchange Act), other than the Company, the Subsidiaries, any employee benefit plan of the Company or the Subsidiaries, or any Permitted Holder, of 50% or more of the combined voting power of the Company’s then outstanding voting securities; |
B) | within any 24-month period, the Incumbent Directors shall cease to constitute at least a majority of the Board or the board of directors of any successor to the Company; provided that any director elected to the Board, or nominated for election, by a majority of the Incumbent Directors then still in office shall be deemed to be an Incumbent Director for purposes of this clause (B); |
C) | the merger or consolidation of the Company as a result of which persons who were owners of the voting securities of the Company |
D) | the approval by the Company’s shareholders of the liquidation or dissolution of the Company other than a liquidation of the Company into any Subsidiary or a liquidation a result of which persons who were stockholders of the Company immediately prior to such liquidation, together with any Permitted Holder, own, directly or indirectly, more than 50% of the combined voting power entitled to vote generally in the election of directors of the entity that holds substantially all of the assets of the Company following such event; or |
E) | the sale, transfer or other disposition of all or substantially all of the assets of the Company to one or more persons or entities that are not, immediately prior to such sale, transfer or other disposition, affiliates of the Company or any Permitted Holder. |
A) | “Permitted Holder” means the Related Parties and any group (within the meaning of Section 13(d)(3) or Section 14(d)(2) of the Exchange Act or any successor provision) of which any of the foregoing are members. |
One Year Performance Period: | January 1, 2019 through December 31, 2019 | |||
One Year Performance Criteria: | 2019 Corporate EBITDA* | |||
Two Year Performance Period: | January 1, 2019 through December 31, 2020 | |||
Two Year Performance Criteria: | 2019 & 2020 Corporate EBITDA* | |||
Three Year Performance Period: | January 1, 2019 through December 31, 2021 | |||
Three Year Performance Criteria: | 2019, 2020 & 2021 Corporate EBITDA* | |||
One Year Performance Determination. Based on the One Year Performance Period and One Year Performance Criteria, the “One Year Adjustment Percentage” shall equal 25% multiplied by the One Year Multiplier below: | ||||
Description ($MM) | One Year Multiplier | |||
Threshold | $ | 50% | ||
Target | $ | 100% | ||
Two Year Performance Determination. Based on the Two Year Performance Period and Two Year Performance Criteria, the “Two Year Adjustment Percentage” shall equal 50% multiplied by the Two Year Multiplier below (provided, however, that the Two Year Adjustment Percentage shall in no event be lower than the One Year Adjustment Percentage): | ||||
Description ($MM) | Two Year Multiplier | |||
Threshold | $ | 50% | ||
Target | $ | 100% | ||
Three Year Performance Determination. Based on the Three Year Performance Period and Three Year Performance Criteria, the “Final Target Adjustment Percentage” shall equal the Three Year Multiplier below (provided, however, that the Final Target Adjustment Percentage shall in no event be lower than the Two Year Adjustment Percentage; provided, further, that the Committee may, at the time of certification, reduce the Final Target Adjustment Percentage to such percentage as the Committee may determine in its sole discretion): | ||||
Description ($MM) | Three Year Multiplier | |||
Threshold | $ | 50% | ||
Target | $ | 100% | ||
Maximum | $ | 125% |
(A) | the acquisition by any person, entity or “group” (as defined in Section 13(d) of the Exchange Act), other than the Company, the Subsidiaries, any employee benefit plan of the Company or the Subsidiaries, or any Permitted Holder, of 50% or more of the combined voting power of the Company’s then outstanding voting securities; |
(B) | within any 24-month period, the Incumbent Directors shall cease to constitute at least a majority of the Board or the board of directors of any successor to the Company; provided that any director elected to the Board, or nominated for election, by a majority of the Incumbent Directors then still in office shall be deemed to be an Incumbent Director for purposes of this clause (B); |
(C) | the merger or consolidation of the Company as a result of which persons who were owners of the voting securities of the Company immediately prior to such merger or consolidation, together with any Permitted Holder, do not, immediately thereafter, own, directly or indirectly, more than 50% of the combined voting power entitled to vote generally in the election of directors of the merged or consolidated company; |
(D) | the approval by the Company’s shareholders of the liquidation or dissolution of the Company other than a liquidation of the Company into any Subsidiary or a liquidation a result of which persons who were stockholders of the Company immediately prior to such liquidation, together with any Permitted Holder, own, directly or indirectly, more than 50% of the combined voting power entitled to vote generally in the election of directors of the entity that holds substantially all of the assets of the Company following such event; or |
(E) | the sale, transfer or other disposition of all or substantially all of the assets of the Company to one or more persons or entities that are not, immediately prior to such sale, transfer or other disposition, affiliates of the Company or any Permitted Holder. |
(A) | “Permitted Holder” means the Related Parties and any group (within the meaning of Section 13(d)(3) or Section 14(d)(2) of the Exchange Act or any successor provision) of which any of the foregoing are members. |
(A) | the acquisition by any person, entity or “group” (as defined in Section 13(d) of the Exchange Act), other than the Company, the Subsidiaries, any employee benefit plan of the Company or the Subsidiaries, or any Permitted Holder, of 50% or more of the combined voting power of the Company’s then outstanding voting securities; |
(B) | within any 24-month period, the Incumbent Directors shall cease to constitute at least a majority of the Board or the board of directors of any successor to the Company; provided that any director elected to the Board, or nominated for election, by a majority of the Incumbent Directors then still in office shall be deemed to be an Incumbent Director for purposes of this clause (B); |
(C) | the merger or consolidation of the Company as a result of which persons who were owners of the voting securities of the Company immediately prior to such merger or consolidation, together with any Permitted Holder, do not, immediately thereafter, own, directly or indirectly, more than 50% of the combined voting power entitled to vote generally in the election of directors of the merged or consolidated company; |
(D) | the approval by the Company’s shareholders of the liquidation or dissolution of the Company other than a liquidation of the Company into any Subsidiary or a liquidation a result of which persons who were stockholders of the Company immediately prior to such liquidation, together with any Permitted Holder, own, directly or indirectly, more than 50% of the combined voting power entitled to vote generally in the election of directors of the entity that holds substantially all of the assets of the Company following such event; or |
(E) | the sale, transfer or other disposition of all or substantially all of the assets of the Company to one or more persons or entities |
(A) | “Permitted Holder” means the Related Parties and any group (within the meaning of Section 13(d)(3) or Section 14(d)(2) of the Exchange Act or any successor provision) of which any of the foregoing are members. |
Performance Period: | January 1, 2019 through December 31, 2019 |
Performance Goal: | 2019 Revenue* equaling or exceeding $___ |
• Medical • Dental • Vision • Life Insurance • Dependent Life Insurance | • Accidental Death and Dismemberment • Long Term Disability • Dependent Care Flexible Spending Account • Health Care Flexible Spending Account • Annual Executive Physical |
• Medical • Dental • Vision • Life Insurance • Dependent Life Insurance | • Accidental Death and Dismemberment • Long Term Disability • Dependent Care Flexible Spending Account • Health Care Flexible Spending Account |
• | Retirement Plan |
a. | The term "Cause" shall mean (i) your willful and continued failure to perform substantially your material duties with the Company (other than any such failure resulting from your incapacity as a result of physical or mental illness) after a written demand for substantial performance specifying the manner in which you have not performed such duties is delivered to you by the person or entity that supervises or manages you, (ii) your engaging in willful and serious misconduct that is injurious to the Company or any of its subsidiaries, (iii) one or more acts of fraud or personal dishonesty by you resulting in or intended to result in personal enrichment at the expense of the Company or any of its subsidiaries, (iv) your substantial abusive use of alcohol, drugs or similar substances that, in the sole judgment of the Company, impairs your job performance, (v) your material violation of any Company policy that results in harm to the Company or any of its subsidiaries or (vi) your indictment for or conviction of (or plea of guilty or nolo contendere) to a felony or of any crime (whether or not a felony) involving moral turpitude. A termination for "Cause" shall include a determination by the Company following your termination of employment for any other reason that, prior to such termination of employment, circumstances constituting Cause existed. |
b. | The term “Disability” shall mean a physical or mental disability or infirmity that prevents or is reasonably expected to prevent the performance of your employment-related duties for a period of six (6) months or longer and, within thirty (30) days after the Company notifies you in writing that it intends to terminate your employment, you shall not have returned to the performance of your employment-related duties on a full-time basis. |
1. | I have reviewed this quarterly report on Form 10-Q for the quarter ended March 31, 2019 of Hertz Global Holdings, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | May 7, 2019 | |||
By: | /s/ KATHRYN V. MARINELLO | |||
Kathryn V. Marinello President, Chief Executive Officer and Director |
1. | I have reviewed this quarterly report on Form 10-Q for the quarter ended March 31, 2019 of Hertz Global Holdings, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | May 7, 2019 | |||
By: | /s/ JAMERE JACKSON | |||
Jamere Jackson Executive Vice President and Chief Financial Officer |
1. | I have reviewed this quarterly report on Form 10-Q for the quarter ended March 31, 2019 of The Hertz Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | May 7, 2019 | |||
By: | /s/ KATHRYN V. MARINELLO | |||
Kathryn V. Marinello President, Chief Executive Officer and Director |
1. | I have reviewed this quarterly report on Form 10-Q for the quarter ended March 31, 2019 of The Hertz Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | May 7, 2019 | |||
By: | /s/ JAMERE JACKSON | |||
Jamere Jackson Executive Vice President and Chief Financial Officer |
(1) | the Report, to which this statement is furnished as an Exhibit, fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: | May 7, 2019 | |||
By: | /s/ KATHRYN V. MARINELLO | |||
Kathryn V. Marinello President, Chief Executive Officer and Director |
(1) | the Report, to which this statement is furnished as an Exhibit, fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: | May 7, 2019 | |||
By: | /s/ JAMERE JACKSON | |||
Jamere Jackson Executive Vice President and Chief Financial Officer |
(1) | the Report, to which this statement is furnished as an Exhibit, fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: | May 7, 2019 | |||
By: | /s/ KATHRYN V. MARINELLO | |||
Kathryn V. Marinello President, Chief Executive Officer and Director |
(1) | the Report, to which this statement is furnished as an Exhibit, fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: | May 7, 2019 | |||
By: | /s/ JAMERE JACKSON | |||
Jamere Jackson Executive Vice President and Chief Financial Officer |
Document and Entity Information - shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Apr. 29, 2019 |
|
Entity Information [Line Items] | ||
Entity Registrant Name | HERTZ GLOBAL HOLDINGS, INC | |
Entity Central Index Key | 0001657853 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 84,119,340 | |
The Hertz Corporation | ||
Entity Information [Line Items] | ||
Entity Registrant Name | HERTZ CORP | |
Entity Central Index Key | 0000047129 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 100 |
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Preferred Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred Stock, shares issued | 0 | 0 |
Preferred Stock, shares outstanding | 0 | 0 |
Common Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common Stock, shares issued | 86,000,000 | 86,000,000 |
Common Stock, shares outstanding | 84,000,000 | 84,000,000 |
Treasury Stock, shares repurchased | 2,000,000 | 2,000,000 |
Non-vehicle | ||
Receivables, allowance for doubtful accounts (in dollars) | $ 27 | $ 27 |
The Hertz Corporation | ||
Receivables, allowance for doubtful accounts (in dollars) | $ 27 | $ 27 |
Common Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common Stock, shares issued | 100 | 100 |
Common Stock, shares outstanding | 100 | 100 |
VIE, total assets | $ 1,100 | $ 1,000 |
VIE, total liabilities | $ 1,000 | $ 947 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Millions, $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Revenues: | ||
Worldwide vehicle rental | $ 1,953 | $ 1,894 |
All other operations | 154 | 169 |
Revenues | 2,107 | 2,063 |
Expenses: | ||
Direct vehicle and operating | 1,266 | 1,236 |
Depreciation of revenue earning vehicles and lease charges | 592 | 661 |
Selling, general and administrative | 234 | 234 |
Total interest expense, net | 183 | 166 |
Other (income) expense, net | (19) | (3) |
Total expenses | 2,256 | 2,294 |
Income (loss) before income taxes | (149) | (231) |
Income tax (provision) benefit | 1 | 29 |
Net income (loss) | (148) | (202) |
Net (income) loss attributable to noncontrolling interests | 1 | 0 |
Net income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder | $ (147) | $ (202) |
Weighted average shares outstanding: | ||
Basic (in shares) | 84 | 83 |
Diluted (in shares) | 84 | 83 |
Earnings (loss) per share - basic and diluted: | ||
Basic earnings (loss) per share (in dollars per share) | $ (1.75) | $ (2.43) |
Diluted earnings (loss) per share (in dollars per share) | $ (1.75) | $ (2.43) |
Vehicles | ||
Expenses: | ||
Total interest expense, net | $ 112 | $ 94 |
Non-vehicle | ||
Expenses: | ||
Total interest expense, net | 71 | 72 |
The Hertz Corporation | ||
Revenues: | ||
Worldwide vehicle rental | 1,953 | 1,894 |
All other operations | 154 | 169 |
Revenues | 2,107 | 2,063 |
Expenses: | ||
Direct vehicle and operating | 1,266 | 1,236 |
Depreciation of revenue earning vehicles and lease charges | 592 | 661 |
Selling, general and administrative | 234 | 234 |
Total interest expense, net | 181 | 165 |
Other (income) expense, net | (19) | (3) |
Total expenses | 2,254 | 2,293 |
Income (loss) before income taxes | (147) | (230) |
Income tax (provision) benefit | 1 | 29 |
Net income (loss) | (146) | (201) |
Net (income) loss attributable to noncontrolling interests | 1 | 0 |
Net income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder | (145) | (201) |
The Hertz Corporation | Vehicles | ||
Expenses: | ||
Total interest expense, net | 112 | 94 |
The Hertz Corporation | Non-vehicle | ||
Expenses: | ||
Total interest expense, net | $ 69 | $ 71 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Net income (loss) | $ (148) | $ (202) |
Other comprehensive income (loss): | ||
Foreign currency translation adjustments | 8 | 0 |
Net gain (loss) on defined benefit pension plans | (1) | (3) |
Reclassification from other comprehensive income (loss) to other (income) expense for amortization of actuarial (gains) losses on defined benefit pension plans | 1 | 0 |
Total other comprehensive income (loss) before income taxes | 8 | (3) |
Income tax (provision) benefit related to reclassified amounts of net periodic costs on defined benefit pension plans | (1) | 0 |
Total other comprehensive income (loss) | 7 | (3) |
Total comprehensive income (loss) | (141) | (205) |
Comprehensive (income) loss attributable to noncontrolling interests | 1 | 0 |
Comprehensive income (loss) attributable to Hertz Global | (140) | (205) |
The Hertz Corporation | ||
Net income (loss) | (146) | (201) |
Other comprehensive income (loss): | ||
Foreign currency translation adjustments | 8 | 0 |
Net gain (loss) on defined benefit pension plans | (1) | (3) |
Reclassification from other comprehensive income (loss) to other (income) expense for amortization of actuarial (gains) losses on defined benefit pension plans | 1 | 0 |
Total other comprehensive income (loss) before income taxes | 8 | (3) |
Income tax (provision) benefit related to reclassified amounts of net periodic costs on defined benefit pension plans | (1) | 0 |
Total other comprehensive income (loss) | 7 | (3) |
Total comprehensive income (loss) | (139) | (204) |
Comprehensive (income) loss attributable to noncontrolling interests | 1 | 0 |
Comprehensive income (loss) attributable to Hertz Global | $ (138) | $ (204) |
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDER'S EQUITY - USD ($) $ in Millions |
Total |
The Hertz Corporation |
Stockholders' Equity Attributable to Hertz Global |
Stockholders' Equity Attributable to Hertz Global
The Hertz Corporation
|
Preferred Stock Shares |
Common Stock Shares |
Common Stock Shares
The Hertz Corporation
|
Additional Paid-In Capital |
Additional Paid-In Capital
The Hertz Corporation
|
Due From Affiliate
The Hertz Corporation
|
Accumulated Deficit |
Accumulated Deficit
The Hertz Corporation
|
Accumulated Other Comprehensive Income (Loss) |
Accumulated Other Comprehensive Income (Loss)
The Hertz Corporation
|
Treasury Stock |
Non- controlling Interests |
Non- controlling Interests
The Hertz Corporation
|
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Beginning Balance at Dec. 31, 2017 | $ 1,520 | $ 1,520 | $ 1,520 | $ 1,520 | $ 0 | $ 1 | $ 0 | $ 2,243 | $ 3,166 | $ (42) | $ (506) | $ (1,486) | $ (118) | $ (118) | $ (100) | $ 0 | |
Beginning Balance (Shares) at Dec. 31, 2017 | 84,000,000 | 100,000,000 | 2,000,000 | ||||||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||||
Net income (loss) | (202) | (201) | (202) | (202) | 0 | ||||||||||||
Net income (loss) attributable to Hertz Global | (202) | (201) | |||||||||||||||
Other Comprehensive Income (Loss), Net of Tax | (3) | (3) | (3) | (3) | |||||||||||||
Issuance of restricted stock | (3) | (3) | (3) | ||||||||||||||
Stock-based compensation charges | 10 | 10 | 10 | ||||||||||||||
Contributions from noncontrolling interests | 5 | 5 | |||||||||||||||
Ending Balance (Shares) at Mar. 31, 2018 | 84,000,000 | 100,000,000 | 2,000,000 | ||||||||||||||
Ending Balance at Mar. 31, 2018 | 1,138 | 1,138 | 1,133 | 1,133 | 0 | $ 1 | $ 0 | 2,250 | 3,176 | (46) | (897) | (1,876) | (121) | (121) | $ (100) | 5 | |
Beginning Balance at Dec. 31, 2017 | 1,520 | 1,520 | 1,520 | 1,520 | 0 | $ 1 | $ 0 | 2,243 | 3,166 | (42) | (506) | (1,486) | (118) | (118) | $ (100) | 0 | |
Beginning Balance (Shares) at Dec. 31, 2017 | 84,000,000 | 100,000,000 | 2,000,000 | ||||||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||||
Net income (loss) | (201) | (201) | (201) | ||||||||||||||
Due from Hertz Holdings | (4) | (4) | (4) | ||||||||||||||
Other Comprehensive Income (Loss), Net of Tax | (3) | (3) | |||||||||||||||
Stock-based compensation charges | 10 | 10 | 10 | ||||||||||||||
Distribution of Herc Holdings, Inc. | 5 | 5 | |||||||||||||||
Ending Balance (Shares) at Dec. 31, 2018 | 84,000,000 | 100,000,000 | 2,000,000 | ||||||||||||||
Ending Balance at Dec. 31, 2018 | 1,120 | 1,118 | 1,061 | 1,059 | 0 | $ 1 | $ 0 | 2,261 | 3,187 | (52) | (909) | (1,884) | (192) | (192) | $ (100) | 59 | $ 59 |
Increase (Decrease) in Stockholders' Equity | |||||||||||||||||
Net income (loss) | (148) | (146) | (145) | (147) | (145) | (1) | $ (1) | ||||||||||
Net income (loss) attributable to Hertz Global | (147) | (145) | |||||||||||||||
Due from Hertz Holdings | (4) | (4) | (4) | ||||||||||||||
Other Comprehensive Income (Loss), Net of Tax | 7 | 7 | 7 | 7 | 7 | ||||||||||||
Issuance of restricted stock | (2) | (2) | (2) | ||||||||||||||
Stock-based compensation charges | 3 | 3 | 3 | 3 | 3 | 3 | |||||||||||
Distribution of Herc Holdings, Inc. | 25 | 0 | 25 | ||||||||||||||
Contributions from noncontrolling interests | 25 | 25 | |||||||||||||||
Ending Balance (Shares) at Mar. 31, 2019 | 84,000,000 | 100,000,000 | 2,000,000 | ||||||||||||||
Ending Balance at Mar. 31, 2019 | $ 1,005 | $ 1,003 | $ 922 | $ 920 | $ 0 | $ 1 | $ 0 | $ 2,262 | $ 3,190 | $ (56) | $ (1,056) | $ (2,029) | $ (185) | $ (185) | $ (100) | $ 83 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Cash flows from operating activities: | ||
Net income (loss) | $ (148) | $ (202) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation and reserves for revenue earning vehicles | 644 | 641 |
Depreciation and amortization, non-vehicle | 48 | 58 |
Amortization of deferred financing costs and debt discount (premium) | 14 | 13 |
Stock-based compensation charges | 3 | 3 |
Provision for receivables allowance | 10 | 9 |
Deferred income taxes, net | (4) | (36) |
(Gain) loss on marketable securities | (11) | 0 |
Other | (13) | 4 |
Changes in assets and liabilities: | ||
Non-vehicle receivables | (33) | (107) |
Prepaid expenses and other assets | (55) | (64) |
Operating lease right-of-use assets | 90 | |
Non-vehicle accounts payable | 32 | 73 |
Accrued liabilities | 28 | 4 |
Accrued taxes, net | 10 | 2 |
Operating lease liabilities | (94) | |
Public liability and property damage | (7) | 3 |
Net cash provided by (used in) operating activities | 514 | 401 |
Cash flows from investing activities: | ||
Revenue earning vehicles expenditures | (3,973) | (3,565) |
Proceeds from disposal of revenue earning vehicles | 2,153 | 1,782 |
Capital asset expenditures, non-vehicle | (54) | (44) |
Proceeds from property and other equipment disposed of or to be disposed of | 19 | 4 |
Other | 0 | (27) |
Net cash provided by (used in) investing activities | (1,855) | (1,850) |
Cash flows from financing activities: | ||
Payment of financing costs | (12) | (19) |
Contributions from noncontrolling interests | 25 | 5 |
Other | (2) | (3) |
Net cash provided by (used in) financing activities | 939 | 1,877 |
Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents | (2) | 8 |
Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents during the period | (404) | 436 |
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period | 1,410 | 1,504 |
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period | 1,006 | 1,940 |
Cash paid during the period for: | ||
Income taxes, net of refunds | 6 | 6 |
Operating lease liabilities | 140 | |
Supplemental disclosures of non-cash flow information: | ||
Purchases of revenue earning vehicles included in accounts payable and accrued liabilities, net of incentives | 431 | 613 |
Purchases of non-vehicle capital assets included in accounts payable | 45 | 42 |
Operating lease right-of-use assets obtained in exchange for lease liabilities | 20 | 0 |
Vehicles | ||
Cash flows from financing activities: | ||
Proceeds from issuance of debt | 3,667 | 5,181 |
Repayments of debt | (2,736) | (3,283) |
Cash paid during the period for: | ||
Interest, net of amounts capitalized: | 87 | 82 |
Supplemental disclosures of non-cash flow information: | ||
Sales of revenue earning vehicles included in receivables | 365 | 268 |
Sales of revenue earning vehicles included in other receivables | 78 | 0 |
Non-vehicle | ||
Cash flows from financing activities: | ||
Proceeds from issuance of debt | 341 | 127 |
Repayments of debt | (344) | (131) |
Cash paid during the period for: | ||
Interest, net of amounts capitalized: | 29 | 28 |
The Hertz Corporation | ||
Cash flows from operating activities: | ||
Net income (loss) | (146) | (201) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation and reserves for revenue earning vehicles | 644 | 641 |
Depreciation and amortization, non-vehicle | 48 | 58 |
Amortization of deferred financing costs and debt discount (premium) | 14 | 13 |
Stock-based compensation charges | 3 | 3 |
Provision for receivables allowance | 10 | 9 |
Deferred income taxes, net | (4) | (36) |
(Gain) loss on marketable securities | (11) | 0 |
Other | (13) | 4 |
Changes in assets and liabilities: | ||
Non-vehicle receivables | (33) | (107) |
Prepaid expenses and other assets | (55) | (64) |
Operating lease right-of-use assets | 90 | |
Non-vehicle accounts payable | 32 | 73 |
Accrued liabilities | 28 | 4 |
Accrued taxes, net | 10 | 2 |
Operating lease liabilities | (94) | |
Public liability and property damage | (7) | 3 |
Net cash provided by (used in) operating activities | 516 | 402 |
Cash flows from investing activities: | ||
Revenue earning vehicles expenditures | (3,973) | (3,565) |
Proceeds from disposal of revenue earning vehicles | 2,153 | 1,782 |
Capital asset expenditures, non-vehicle | (54) | (44) |
Proceeds from property and other equipment disposed of or to be disposed of | 19 | 4 |
Other | 0 | (27) |
Net cash provided by (used in) investing activities | (1,855) | (1,850) |
Cash flows from financing activities: | ||
Payment of financing costs | (12) | (19) |
Advances to Hertz Holdings | (4) | (4) |
Contributions from noncontrolling interests | 25 | 5 |
Other | 0 | 0 |
Net cash provided by (used in) financing activities | 937 | 1,876 |
Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents | (2) | 8 |
Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents during the period | (404) | 436 |
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period | 1,410 | 1,504 |
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period | 1,006 | 1,940 |
Cash paid during the period for: | ||
Income taxes, net of refunds | 6 | 6 |
Operating lease liabilities | 140 | |
Supplemental disclosures of non-cash flow information: | ||
Purchases of revenue earning vehicles included in accounts payable and accrued liabilities, net of incentives | 431 | 613 |
Purchases of non-vehicle capital assets included in accounts payable | 45 | 42 |
The Hertz Corporation | Vehicles | ||
Cash flows from financing activities: | ||
Proceeds from issuance of debt | 3,667 | 5,181 |
Repayments of debt | (2,736) | (3,283) |
Cash paid during the period for: | ||
Interest, net of amounts capitalized: | 87 | 82 |
Supplemental disclosures of non-cash flow information: | ||
Sales of revenue earning vehicles included in receivables | 365 | 268 |
Sales of revenue earning vehicles included in other receivables | 78 | 0 |
Operating lease right-of-use assets obtained in exchange for lease liabilities | 20 | 0 |
The Hertz Corporation | Non-vehicle | ||
Cash flows from financing activities: | ||
Proceeds from issuance of debt | 341 | 127 |
Repayments of debt | (344) | (131) |
Cash paid during the period for: | ||
Interest, net of amounts capitalized: | $ 29 | $ 28 |
Background |
3 Months Ended |
---|---|
Mar. 31, 2019 | |
Background Disclosure [Abstract] | |
Background | Background Hertz Global Holdings, Inc. ("Hertz Global" when including its subsidiaries and VIEs and "Hertz Holdings" excluding its subsidiaries and VIEs) was incorporated in Delaware in 2015 to serve as the top-level holding company for Rental Car Intermediate Holdings, LLC, which wholly owns The Hertz Corporation ("Hertz" and interchangeably with Hertz Global, the "Company"), Hertz Global's primary operating company. Hertz was incorporated in Delaware in 1967 and is a successor to corporations that have been engaged in the vehicle rental and leasing business since 1918. Hertz operates its vehicle rental business globally primarily through the Hertz, Dollar and Thrifty brands from company-owned, licensee and franchisee locations in the United States ("U.S."), Africa, Asia, Australia, Canada, the Caribbean, Europe, Latin America, the Middle East and New Zealand. Through its Donlen subsidiary, Hertz provides vehicle leasing and fleet management services. |
Basis of Presentation and Recently Issued Accounting Pronouncements |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Presentation and Recently Issued Accounting Pronouncements | Basis of Presentation and Recently Issued Accounting Pronouncements Basis of Presentation This Quarterly Report on Form 10-Q combines the quarterly reports on Form 10-Q for the quarterly period ended March 31, 2019 of Hertz Global and Hertz. Hertz Global consolidates Hertz for financial statement purposes, therefore, disclosures that relate to activities of Hertz also apply to Hertz Global. In the sections that combine disclosure of Hertz Global and Hertz, this report refers to actions as being actions of the Company, or Hertz Global, which is appropriate because the business is one enterprise and Hertz Global operates the business through Hertz. When appropriate, Hertz Global and Hertz are named specifically for their individual disclosures and any significant differences between the operations and results of Hertz Global and Hertz are separately disclosed and explained. The Company's unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the U.S. (“U.S. GAAP”). In the opinion of management, the unaudited condensed consolidated financial statements reflect all adjustments of a normal recurring nature that are necessary for a fair presentation of the results for the interim periods presented. Interim results are not necessarily indicative of results for a full year. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and footnotes. Actual results could differ materially from those estimates. The December 31, 2018 unaudited condensed consolidated balance sheet data is derived from audited financial statements but does not include all disclosures required by U.S. GAAP. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with information included in the Company's Form 10‑K for the year ended December 31, 2018 (the "2018 Form 10‑K"), as filed with the Securities and Exchange Commission ("SEC") on February 25, 2019. Principles of Consolidation The unaudited condensed consolidated financial statements of Hertz Global include the accounts of Hertz Global and its wholly owned and majority owned U.S. and international subsidiaries, and its VIEs, as applicable. The unaudited condensed consolidated financial statements of Hertz include the accounts of Hertz, its wholly owned and majority owned U.S. and international subsidiaries, and its VIEs, as applicable. The Company consolidates a VIE when it is deemed the primary beneficiary. The Company accounts for its investment in joint ventures using the equity method when it has significant influence but not control and is not the primary beneficiary. All significant intercompany transactions have been eliminated in consolidation. Recently Issued Accounting Pronouncements Adopted Leases In February 2016, the Financial Accounting Standards Board (the "FASB") issued guidance that replaced the existing lease guidance in U.S. GAAP and in 2018 and 2019 issued amendments and updates to the new lease standard (collectively "Topic 842"). Topic 842 established a right-of-use (“ROU”) model that requires a lessee to record on the balance sheet a ROU asset and corresponding lease liability based on the present value of future lease payments. Leases are classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. Topic 842 also expanded the requirements for lessees to record leases embedded in other arrangements. Additionally, enhanced quantitative and qualitative disclosures surrounding leases are required which provide financial statement users the ability to assess the amount, timing and uncertainty of cash flows arising from leases. The Company adopted this guidance effective January 1, 2019 using a simplified transition approach for both lessees and lessors. Prior periods have not been retrospectively adjusted and are in conformance with the then existing guidance under U.S. GAAP ("Topic 840"). The Company utilized the package of practical expedients for existing or expired contracts and did not reassess whether such contracts contain leases, the lease classification or the initial direct costs. Additionally, the Company utilized the historical lease term and did not utilize the practical expedient allowing the use of hindsight in determining the lease term and in assessing impairment of its ROU assets. To determine the present value of its lease payments as of January 1, 2019, the Company utilized the interest rate implicit in the lease agreement. If the implicit interest rate was not provided in the lease agreement, the Company utilized the Company's collateralized incremental borrowing rate as of January 1, 2019. Also, with respect to the Company's real estate leases, vehicle leases and fleet leases, the Company availed itself of the practical expedient for lessees and lessors and elected an accounting policy by class of underlying asset to combine lease and non-lease components. As of January 1, 2019, the Company accounts for revenue earned from vehicle rentals and rental related activities wherein an identified asset is transferred to the customer and the customer has the ability to control that asset under Topic 842. Prior to the adoption of Topic 842, the Company accounted for such revenue under Revenue from Contracts with Customers ("Topic 606"). The cumulative effect of applying the new guidance to all leases as of January 1, 2019 that were not completed and with lease terms in excess of twelve months has been recorded as of the adoption date as follows: Hertz Global
Hertz
Adoption of Topic 842 did not impact the Company's results of operations or cash flows. See Note 4, "Leases," for information regarding the Company’s accounting policies for leases, as well as other required disclosures under Topic 842. Not Yet Adopted Changes to Disclosure Requirements for Defined Benefit Plans In August 2018, the FASB issued guidance that modifies disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans to remove disclosures no longer considered cost beneficial, add disclosures identified as relevant and clarify certain disclosure requirements. The guidance is effective for annual periods beginning after December 15, 2020 using a retrospective transition method. Early adoption is permitted. The Company is in the process of determining the timing of adoption and assessing the overall impact of adopting this guidance on its disclosures. Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement In August 2018, the FASB issued guidance on a customer's accounting for implementation fees paid in a cloud computing service contract arrangement that addresses which implementation costs to capitalize as an asset and which costs to expense. Capitalized implementation fees are to be expensed over the term of the cloud computing arrangement, and the expense is required to be recognized in the same line item in the income statement as the associated hosting service expenses. The entity is also required to present the capitalized implementation fees on the balance sheet in the same line item as the prepayment for hosting service fees associated with the cloud computing arrangement. The guidance is effective for annual periods beginning after December 15, 2019, and interim periods within those annual periods using a retrospective or prospective transition method. Early adoption is permitted, including adoption in any interim period. The Company intends to adopt this guidance when effective, on January 1, 2020, using a prospective transition method and is in the process of assessing the overall impact of adopting this guidance on its financial position, results of operations and cash flows. |
Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt The Company's debt, including its available credit facilities, consists of the following ($ in millions):
N/A - Not applicable
The Company is highly leveraged and a substantial portion of its liquidity needs arise from debt service on its indebtedness and from the funding of its costs of operations and capital expenditures. The Company’s practice is to maintain sufficient liquidity through cash from operations, credit facilities and other financing arrangements to mitigate any adverse impact on its operations resulting from adverse financial market conditions. As of March 31, 2019, approximately $2.6 billion of vehicle debt and $19 million of non-vehicle debt is due to mature between April 1, 2019 and March 31, 2020. The Company has reviewed its debt facilities and determined that it is probable that the Company will be able, and has the intent, to refinance these facilities at such times as the Company determines appropriate prior to their respective maturities. Vehicle Debt HVF II U.S. Vehicle Variable Funding Notes HVF II Series 2013-A Notes: In February 2019, HVF II increased the commitments under the HVF II Series 2013-A Notes by $400 million. HVF II Series 2019-A Notes: In February 2019, HVF II issued the Series 2019-A Variable Funding Rental Car Asset Backed Notes in an aggregate maximum principal amount of $500 million. HVF II U.S. Vehicle Medium Term Notes HVF II Series 2019-1 Notes: In February 2019, HVF II issued the Series 2019-1 Rental Car Asset Backed Notes, Class A, Class B, Class C and Class D in an aggregate principal amount of $745 million. An affiliate of HVF II purchased the Class D Notes of such series at the time of issuance, and as a result, approximately $45 million of the aggregate principal amount is eliminated in consolidation. There is subordination within the HVF II Series 2019-1 Notes based on class. Canadian Securitization In April 2019, TCL Funding Limited Partnership ("Funding LP"), a bankruptcy remote, indirect, wholly owned, special purpose subsidiary of Hertz, amended its supplemental indenture for its Series 2015-A Variable Funding Rental Car Asset Backed Notes (the "Funding LP Series 2015-A Notes") to provide for incremental seasonal capacity (subject to borrowing base availability) of up to CAD$90 million from June 2019 to October 2019. Following the expiration of the seasonal commitment period, aggregate maximum borrowings available under the Funding LP Series 2015-A Notes will revert to CAD$350 million (subject to borrowing base availability). Additionally, the Canadian Securitization was amended to extend the maturity of the aggregate maximum borrowings of CAD$350 million to March 2021. Borrowing Capacity and Availability Borrowing capacity and availability comes from the Company's "revolving credit facilities," which are a combination of variable funding asset-backed securitization facilities, cash-flow-based revolving credit facilities, asset-based revolving credit facilities and a standalone $400 million letter of credit facility (the "Letter of Credit Facility"). Creditors under each such asset-backed securitization facility and asset-based revolving credit facility have a claim on a specific pool of assets as collateral. The Company's ability to borrow under each such asset-backed securitization facility and asset-based revolving credit facility is a function of, among other things, the value of the assets in the relevant collateral pool. With respect to each such asset-backed securitization facility and asset-based revolving credit facility, the Company refers to the amount of debt it can borrow given a certain pool of assets as the borrowing base. The Company refers to "Remaining Capacity" as the maximum principal amount of debt permitted to be outstanding under the respective facility (i.e., with respect to a variable funding asset-backed securitization facility or asset-based revolving credit facility, the amount of debt the Company could borrow assuming it possessed sufficient assets as collateral) less the principal amount of debt then-outstanding under such facility. With respect to a variable funding asset-backed securitization facility or asset-based revolving credit facility, the Company refers to "Availability Under Borrowing Base Limitation" as the lower of Remaining Capacity or the borrowing base less the principal amount of debt then-outstanding under such facility (i.e., the amount of debt that can be borrowed given the collateral possessed at such time). With respect to the Senior RCF and the Letter of Credit Facility, "Availability Under Borrowing Base Limitation" is the same as "Remaining Capacity" since borrowings under the Senior RCF and availability for issuances of letters of credit under the Letter of Credit Facility are not subject to a borrowing base. The following facilities were available to the Company as of March 31, 2019 and are presented net of any outstanding letters of credit:
Letters of Credit As of March 31, 2019, there were outstanding standby letters of credit totaling $714 million. Such letters of credit have been issued primarily to support the Company's insurance programs, vehicle rental concessions and leaseholds as well as to provide credit enhancement for its asset-backed securitization facilities. Of this amount, $403 million was issued under the Senior RCF and $304 million was issued under the Letter of Credit Facility. As of March 31, 2019, none of the issued letters of credit have been drawn upon. Special Purpose Entities Substantially all of the Company's revenue earning vehicles and certain related assets are owned by special purpose entities, or are encumbered in favor of the lenders under the various credit facilities, other secured financings and asset-backed securities programs. None of such assets (including the assets owned by Hertz Vehicle Financing II LP, HVF II GP Corp., Hertz Vehicle Financing LLC, Rental Car Finance LLC, DNRS II LLC, HFLF, Donlen Trust and various international subsidiaries that facilitate the Company's international securitizations) are available to satisfy the claims of general creditors. The Company has a 25% ownership interest in International Fleet Financing II ("IFF No. 2"), whose sole purpose is to provide commitments to lend in various currencies subject to borrowing bases comprised of revenue earning vehicles and related assets of certain of Hertz International, Ltd.'s subsidiaries. IFF No. 2 is a VIE and the Company is the primary beneficiary, therefore, the assets, liabilities, and results of operations of IFF No. 2 are included in the Company's unaudited condensed consolidated financial statements. As of March 31, 2019 and December 31, 2018, IFF No. 2 had total assets of $1.0 billion and $946 million, respectively, primarily comprised of loans receivable, and total liabilities of $1.0 billion and $946 million, respectively, primarily comprised of debt. Covenant Compliance The financial covenant provides that Hertz’s consolidated first lien net leverage ratio, as defined in the credit agreements governing the Senior RCF and the Letter of Credit Facility, as of the last day of any fiscal quarter may not exceed a ratio of 3.00 to 1.00 (the "Covenant Leverage Ratio"). As of March 31, 2019, Hertz was in compliance with the Covenant Leverage Ratio. |
Leases |
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Leases | Leases As disclosed in the Leases section of Note 2, “Basis of Presentation and Recently Issued Accounting Pronouncements” ("Note 2"), the Company adopted Topic 842 in accordance with the effective date on January 1, 2019. Note 2 includes disclosures regarding the Company’s method of adoption and the impact upon adoption to its financial position, results of operations and cash flows. The Company enters into agreements as a lessor under which it rents vehicles and leases fleets to customers. The Company enters into agreements as a lessee to rent real estate, vehicles and other equipment and to conduct its vehicle rental operations under concession agreements. If any of the following criteria is met, the Company classifies the lease as a financing lease (as a lessee) or as a direct financing or sales-type lease (as a lessor):
Leases that do not meet any of the above criteria are accounted for as operating leases. The Company combines lease and non-lease components in its contracts under Topic 842. The following further describes the Company's leasing transactions. Lessor The Company's operating leases for vehicle rentals have rental periods that are typically short term in nature (e.g., daily or weekly) and can generally be extended for up to one month or terminated at the customer's discretion. Rental charges are computed on a limited or unlimited mileage rate, or on a time rate plus a mileage charge. In connection with the vehicle rental, the Company offers supplemental equipment rentals (e.g., child seats and ski racks) and issues loyalty points to customers enrolled in its Hertz Gold Plus Rewards program, which are deemed lease components. The Company also offers value-added services in connection with the vehicle rental, which are deemed non-lease components, such as loss or collision damage waiver, theft protection, liability and personal accident/effects insurance coverage, premium emergency roadside service and satellite radio. Additionally, the Company charges for variable services primarily consisting of charges for the fueling of vehicles and tolls incurred during the rental period, and for fees associated with the early or late termination of the vehicle lease. The Company mitigates residual value risk of its revenue earning vehicles by utilizing manufacturer repurchase and guaranteed depreciation programs, using sophisticated vehicle diagnostic and repair equipment to maintain the condition of its vehicles, and through periodic reviews of vehicle depreciation rates based on management's ongoing assessment of present and estimated future market conditions. The Company's operating leases for fleets have lease periods that are typically for twelve months, after which the lease converts to a month-to-month lease, allowing the vehicle to be surrendered any time thereafter. The Company's fleet leases contain a terminal rental adjustment clause ("TRAC lease") where, upon sale of the vehicle following the termination of the lease, a TRAC adjustment may result through which the lessee is credited or charged with the gain or loss on the vehicle. Such TRAC adjustments are considered variable charges. The following table summarizes the amount of operating lease income and other income included in total revenues in the accompanying condensed consolidated statement of operations for the three months ended March 31, 2019:
Lessee As a lessee, the Company has the following types of operating leases:
The Company's lease terms generally range from one month to thirty-five years and a number of agreements contain escalation clauses, which increase the payment obligation based on a fixed or variable rate, and renewal options. The length of renewals vary and may result in different payment terms. Payment terms are based on fixed rates explicit in the lease, including guaranteed minimums, and/or variable rates based on:
The Company recognizes a ROU asset and lease liability in its condensed consolidated balance sheet for leases with a term greater than twelve months. Options to extend or terminate a lease are included in the Company's ROU asset and lease liability when it is reasonably certain that such options will be exercised. The Company does not recognize ROU assets or lease liabilities for short-term leases (i.e., those with a term of twelve months or less) and recognizes lease expense on a straight-line basis over the lease term. To determine the present value of its lease payments, the Company utilizes the interest rate implicit in the lease agreement. If the implicit interest rate was not provided in the lease agreement, the Company utilizes the Company's collateralized incremental borrowing rate as of the beginning of the reporting period or the commencement date of the lease, whichever is later. The following table summarizes the amount of lease costs incurred by the Company:
(1) Topic 842, which was adopted on January 1, 2019, requires the Company to disclose the short term portion of minimum fixed lease costs. For the year ended December 31, 2018, under the then existing guidance in Topic 840, the Company was only required to disclose minimum fixed costs in total. The following summarizes the weighted average remaining lease term and weighted average discount rate for the Company's operating leases as a lessee:
The following table summarizes the Company's minimum fixed lease obligations under existing agreements as a lessee, excluding variable concession obligations and short-term leases, as of March 31, 2019:
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Lessor, Operating Leases | Leases As disclosed in the Leases section of Note 2, “Basis of Presentation and Recently Issued Accounting Pronouncements” ("Note 2"), the Company adopted Topic 842 in accordance with the effective date on January 1, 2019. Note 2 includes disclosures regarding the Company’s method of adoption and the impact upon adoption to its financial position, results of operations and cash flows. The Company enters into agreements as a lessor under which it rents vehicles and leases fleets to customers. The Company enters into agreements as a lessee to rent real estate, vehicles and other equipment and to conduct its vehicle rental operations under concession agreements. If any of the following criteria is met, the Company classifies the lease as a financing lease (as a lessee) or as a direct financing or sales-type lease (as a lessor):
Leases that do not meet any of the above criteria are accounted for as operating leases. The Company combines lease and non-lease components in its contracts under Topic 842. The following further describes the Company's leasing transactions. Lessor The Company's operating leases for vehicle rentals have rental periods that are typically short term in nature (e.g., daily or weekly) and can generally be extended for up to one month or terminated at the customer's discretion. Rental charges are computed on a limited or unlimited mileage rate, or on a time rate plus a mileage charge. In connection with the vehicle rental, the Company offers supplemental equipment rentals (e.g., child seats and ski racks) and issues loyalty points to customers enrolled in its Hertz Gold Plus Rewards program, which are deemed lease components. The Company also offers value-added services in connection with the vehicle rental, which are deemed non-lease components, such as loss or collision damage waiver, theft protection, liability and personal accident/effects insurance coverage, premium emergency roadside service and satellite radio. Additionally, the Company charges for variable services primarily consisting of charges for the fueling of vehicles and tolls incurred during the rental period, and for fees associated with the early or late termination of the vehicle lease. The Company mitigates residual value risk of its revenue earning vehicles by utilizing manufacturer repurchase and guaranteed depreciation programs, using sophisticated vehicle diagnostic and repair equipment to maintain the condition of its vehicles, and through periodic reviews of vehicle depreciation rates based on management's ongoing assessment of present and estimated future market conditions. The Company's operating leases for fleets have lease periods that are typically for twelve months, after which the lease converts to a month-to-month lease, allowing the vehicle to be surrendered any time thereafter. The Company's fleet leases contain a terminal rental adjustment clause ("TRAC lease") where, upon sale of the vehicle following the termination of the lease, a TRAC adjustment may result through which the lessee is credited or charged with the gain or loss on the vehicle. Such TRAC adjustments are considered variable charges. The following table summarizes the amount of operating lease income and other income included in total revenues in the accompanying condensed consolidated statement of operations for the three months ended March 31, 2019:
Lessee As a lessee, the Company has the following types of operating leases:
The Company's lease terms generally range from one month to thirty-five years and a number of agreements contain escalation clauses, which increase the payment obligation based on a fixed or variable rate, and renewal options. The length of renewals vary and may result in different payment terms. Payment terms are based on fixed rates explicit in the lease, including guaranteed minimums, and/or variable rates based on:
The Company recognizes a ROU asset and lease liability in its condensed consolidated balance sheet for leases with a term greater than twelve months. Options to extend or terminate a lease are included in the Company's ROU asset and lease liability when it is reasonably certain that such options will be exercised. The Company does not recognize ROU assets or lease liabilities for short-term leases (i.e., those with a term of twelve months or less) and recognizes lease expense on a straight-line basis over the lease term. To determine the present value of its lease payments, the Company utilizes the interest rate implicit in the lease agreement. If the implicit interest rate was not provided in the lease agreement, the Company utilizes the Company's collateralized incremental borrowing rate as of the beginning of the reporting period or the commencement date of the lease, whichever is later. The following table summarizes the amount of lease costs incurred by the Company:
(1) Topic 842, which was adopted on January 1, 2019, requires the Company to disclose the short term portion of minimum fixed lease costs. For the year ended December 31, 2018, under the then existing guidance in Topic 840, the Company was only required to disclose minimum fixed costs in total. The following summarizes the weighted average remaining lease term and weighted average discount rate for the Company's operating leases as a lessee:
The following table summarizes the Company's minimum fixed lease obligations under existing agreements as a lessee, excluding variable concession obligations and short-term leases, as of March 31, 2019:
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Income Tax (Provision) Benefit |
3 Months Ended |
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Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Tax (Provision) Benefit | Income Tax (Provision) Benefit Hertz Global The effective tax rate for the three months ended March 31, 2019 and 2018 is 1% and 13%, respectively. The Company recorded a tax benefit of $1 million for the three months ended March 31, 2019, compared to $29 million for the three months ended March 31, 2018. The effective income tax rate and related tax benefit are lower for the three months ended March 31, 2019 driven by overall improvement in results from operations, primarily due to lower losses in the U.S. where an income tax benefit was recognized, and the composition of earnings by jurisdiction. Hertz The effective tax rate for the three months ended March 31, 2019 and 2018 is 1% and 13%, respectively. The Company recorded a tax benefit of $1 million for the three months ended March 31, 2019, compared to $29 million for the three months ended March 31, 2018. The effective income tax rate and related tax benefit are lower for the three months ended March 31, 2019 driven by overall improvement in results from operations, primarily due to lower losses in the U.S. where an income tax benefit was recognized, and the composition of earnings by jurisdiction. |
Earnings (Loss) Per Share - Hertz Global |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings (Loss) Per Share - Hertz Global | Earnings (Loss) Per Share - Hertz Global Basic earnings (loss) per share has been computed based upon the weighted average number of common shares outstanding. Diluted earnings (loss) per share has been computed based upon the weighted average number of common shares outstanding plus the effect of all potentially dilutive common stock equivalents, except when the effect would be anti-dilutive. The following table sets forth the computation of basic and diluted earnings (loss) per share:
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Fair Value Measurements |
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Fair Value Measurements | Fair Value Measurements Assets and Liabilities Measured at Fair Value on a Recurring Basis The fair value of cash, restricted cash, accounts receivable, accounts payable and accrued expenses, to the extent the underlying liability will be settled in cash, approximates the carrying values because of the short-term nature of these instruments. Cash Equivalents, Restricted Cash Equivalents and Investments The Company’s cash equivalents and restricted cash equivalents primarily consist of investments in money market funds and time deposits. The Company determines the fair value of cash equivalents using a market approach based on quoted prices in active markets (Level 1 inputs). Investments in equity securities that are measured at fair value on a recurring basis consist of marketable securities. The following table summarizes the ending balances of the Company's cash equivalents, restricted cash equivalents and investments:
Debt Obligations The fair value of debt is estimated based on quoted market rates as well as borrowing rates currently available to the Company for loans with similar terms and average maturities (Level 2 inputs).
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Contingencies and Off-Balance Sheet Commitments |
3 Months Ended |
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Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies and Off-Balance Sheet Commitments | Contingencies and Off-Balance Sheet Commitments Legal Proceedings Public Liability and Property Damage The Company is currently a defendant in numerous actions and has received numerous claims on which actions have not yet commenced for public liability and property damage arising from the operation of motor vehicles rented from the Company. The obligation for public liability and property damage on self-insured U.S. and international vehicles, as stated on the accompanying unaudited condensed consolidated balance sheets, represents an estimate for both reported accident claims not yet paid and claims incurred but not yet reported. The related liabilities are recorded on a non-discounted basis. Reserve requirements are based on rental volume and actuarial evaluations of historical accident claim experience and trends, as well as future projections of ultimate losses, expenses, premiums and administrative costs. As of March 31, 2019 and December 31, 2018, the Company's liability recorded for public liability and property damage matters is $411 million and $418 million, respectively. The Company believes that its analysis is based on the most relevant information available, combined with reasonable assumptions, and that the Company may prudently rely on this information to determine the estimated liability. The liability is subject to significant uncertainties. The adequacy of the liability reserve is regularly monitored based on evolving accident claim history and insurance related state legislation changes. If the Company's estimates change or if actual results differ from these assumptions, the amount of the recorded liability is adjusted to reflect these results. Loss Contingencies From time to time the Company is a party to various legal proceedings, typically involving operational issues common to the vehicle rental business, including claims by employees and former employees and governmental investigations. The Company has summarized below the most significant legal proceedings to which the Company was and/or is a party during the three months ended March 31, 2019 or the period after March 31, 2019, but before the filing of this Quarterly Report on Form 10‑Q. Governmental Investigations - The Company previously identified certain activities in Brazil that raised issues under the Foreign Corrupt Practices Act (the "FCPA") and other federal and local laws, which the Company self-reported to appropriate government entities. The matters associated with the FCPA and other federal matters have been resolved without further action by the applicable U.S. government entities. The Company is continuing its cooperation with respect to matters under local Brazilian laws. The Company has accrued a loss contingency with respect to the ongoing Brazil-related matters that is not material. However, it is possible that an adverse outcome with respect to the ongoing matters in Brazil could result in losses that could be material to the Company's consolidated financial condition, results of operations or cash flows in any particular reporting period. In re Hertz Global Holdings, Inc. Securities Litigation - In November 2013, a purported shareholder class action, Pedro Ramirez, Jr. v. Hertz Global Holdings, Inc., et al., was commenced in the U.S. District Court for the District of New Jersey naming Old Hertz Holdings and certain of its officers as defendants and alleging violations of the federal securities laws. The complaint alleged that Old Hertz Holdings made material misrepresentations and/or omissions of material fact in certain of its public disclosures in violation of Section 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended, and Rule 10b-5 promulgated thereunder. The complaint sought an unspecified amount of monetary damages on behalf of the purported class and an award of costs and expenses, including counsel fees and expert fees. The complaint, as amended, was dismissed with prejudice on April 27, 2017 and on September 20, 2018, the Third Circuit affirmed the dismissal of the complaint with prejudice. On February 5, 2019, the plaintiffs filed a motion asking the federal district court to exercise its discretion and allow the plaintiffs to reinstate their claims to include additional allegations from the Administrative Order. In addition to the matters described above, the Company maintains an internal compliance program through which it from time to time identifies other potential violations of laws and regulations applicable to the Company. When the Company identifies such matters, the Company conducts an internal investigation and otherwise cooperates with governmental authorities, as appropriate. The Company has established reserves for matters where the Company believes that losses are probable and can be reasonably estimated. Other than the aggregate reserve established for claims for public liability and property damage, none of those reserves are material. For matters, including certain of those described above, where the Company has not established a reserve, the ultimate outcome or resolution cannot be predicted at this time, or the amount of ultimate loss, if any, cannot be reasonably estimated. These matters are subject to many uncertainties and the outcome of the individual litigated matters is not predictable with assurance. It is possible that certain of the actions, claims, inquiries or proceedings, including those discussed above, could be decided unfavorably to the Company or any of its subsidiaries involved. Accordingly, it is possible that an adverse outcome from such a proceeding could exceed the amount accrued in an amount that could be material to the accompanying consolidated financial condition, results of operations or cash flows in any particular reporting period. Other Proceedings Litigation Against Former Executives - On March 25, 2019, the Company filed a petition against Mark Frissora, Elyse Douglas and John Jeffrey Zimmerman, all former senior executive officers of the former Hertz Global Holdings, Inc. ("Old Hertz Holdings"), in the U.S. District Court for the District of New Jersey alleging four causes of action for breach of contract, with a fifth cause of action seeking a declaratory judgment denying the defendants' entitlement to advances of fees and expenses under the Company's indemnification bylaws. On March 28, 2019, the Company filed a petition against Scott Sider, a former senior executive of Old Hertz Holdings, in the Circuit Court of the Twentieth Judicial Circuit alleging three causes of action for breach of contract, with a fourth cause of action seeking a declaratory judgment denying the defendants' entitlement to advances of fees and expenses under the Company's indemnification bylaws. The Company is seeking repayment of incentive-based compensation received by the defendants in connection with the restatements included in the Old Hertz Holdings Form 10-K for the year ended December 31, 2014 and related accounting for prior periods. The Company is also seeking recovery for the costs of the SEC investigation that resulted in an administrative order on December 31, 2018 with respect to events generally involving the restatements included in Old Hertz Holdings Form 10-K for the year ended December 31, 2014 and other damages resulting from the necessity of the restatements. The Company is pursuing these legal proceedings in accordance with its clawback policy and contractual rights. Pursuant to the agreements governing the separation of Herc Holdings from Hertz Global that occurred on June 30, 2016, Herc Holdings is entitled to 15% of the net proceeds of any such repayment or recovery. Indemnification Obligations In the ordinary course of business, the Company has executed contracts involving indemnification obligations customary in the relevant industry and indemnifications specific to a transaction such as the sale of a business. These indemnification obligations might include claims relating to the following: environmental matters; intellectual property rights; governmental regulations and employment-related matters; customer, supplier and other commercial contractual relationships; and financial matters. Specifically, the Company has indemnified various parties for the costs associated with remediating numerous hazardous substance storage, recycling or disposal sites in many states and, in some instances, for natural resource damages. The amount of any such expenses or related natural resource damages for which the Company may be held responsible could be substantial. In addition, Hertz entered into customary indemnification agreements with Hertz Holdings and certain of the Company's stockholders and their affiliates pursuant to which Hertz Holdings and Hertz will indemnify those entities and their respective affiliates, directors, officers, partners, members, employees, agents, representatives and controlling persons, against certain liabilities arising out of performance of a consulting agreement with Hertz Holdings and each of such entities and certain other claims and liabilities, including liabilities arising out of financing arrangements or securities offerings. The Company has entered into customary indemnification agreements with each of its directors and certain of its officers. Performance under these indemnification obligations would generally be triggered by a breach of terms of the contract or by a third-party claim. In connection with the Spin-Off, the Company executed an agreement with Herc Holdings that contains mutual indemnification clauses and a customary indemnification provision with respect to liability arising out of or resulting from assumed legal matters. The Company regularly evaluates the probability of having to incur costs associated with these indemnification obligations and has accrued for expected losses that are probable and estimable. |
Related Party Transactions |
3 Months Ended |
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Mar. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Agreements with the Icahn Group In the normal course of business, the Company purchases goods and services and leases property from entities controlled by Carl C. Icahn and his affiliates, including The Pep Boys - Manny, Moe & Jack (collectively, the "Icahn Group"). During the three months ended March 31, 2019 and 2018, the Company purchased approximately $12 million and $6 million, respectively, worth of goods and services from these related parties. Transactions and agreements between Hertz Holdings and Hertz In June 2017, Hertz entered into a master loan agreement with Hertz Holdings for a facility size of $425 million with an expiration in June 2018 (the "2017 Master Loan"). The interest rate is based on the U.S. Dollar LIBOR rate plus a margin. In June 2018, upon expiration of the 2017 Master Loan, Hertz entered into a new master loan agreement with Hertz Holdings for a facility size of $425 million with an expiration in June 2019 (the "2018 Master Loan") where amounts outstanding under the 2017 Master Loan were transferred to the 2018 Master Loan. The interest rate is based on the U.S. Dollar LIBOR rate plus a margin. As of March 31, 2019 and December 31, 2018, there was $121 million and $117 million, respectively, outstanding under the 2018 Master Loan representing advances and any accrued but unpaid interest. Additionally, Hertz has a due to an affiliate in the amount of $65 million, which represents a tax-related liability to Hertz Holdings. The net impact of the above amounts are included in stockholder's equity in the accompanying unaudited condensed consolidated balance sheets of Hertz. 767 Auto Leasing LLC In January 2018, Hertz entered into a Master Motor Vehicle Lease and Management Agreement (the “767 Lease Agreement”) pursuant to which Hertz granted 767 Auto Leasing LLC (“767”), an entity affiliated with the Icahn Group, the option to acquire certain vehicles from Hertz at rates aligned with the rates at which Hertz sells vehicles to third parties. Hertz leases the vehicles purchased by 767 under the 767 Lease Agreement or from third parties, under a mutually developed fleet plan and Hertz manages, services, repairs, sells and maintains those leased vehicles on behalf of 767. Hertz rents the leased vehicles to drivers of transportation network companies ("TNC"), including Lyft, Inc. drivers, from rental counters within locations leased or owned by affiliates of 767, including locations operated under a master lease agreement with The Pep Boys - Manny, Joe & Jack. The 767 Lease Agreement has an initial term of 18 months and is subject to automatic six month renewals thereafter, unless terminated by either party (with or without cause) prior to the start of any such six month renewal. 767’s payment obligations under the 767 Lease Agreement are guaranteed by American Entertainment Properties Corp. ("American"), an entity affiliated with the Icahn Group. The Company is entitled to 25% of the profit from the rental of the leased vehicles, as specified in the 767 Lease Agreement, which is variable and based primarily on the rental revenue, less certain vehicle related costs, such as depreciation, licensing and maintenance expenses. The Company has determined that it is the primary beneficiary of 767 due to its power to direct the activities of 767 that most significantly impact 767's economic performance and the Company's obligation to absorb 25% of 767's gains/losses. Accordingly, 767 is consolidated by the Company as a VIE. |
Segment Information |
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Segment Information | Segment Information The Company has identified three reportable segments, which are organized based on the products and services provided by its operating segments and the geographic areas in which its operating segments conduct business, as follows:
In addition to the above reportable segments, the Company has corporate operations ("Corporate") which includes general corporate assets and expenses and certain interest expense (including net interest on non-vehicle debt). The following tables provide significant statement of operations and balance sheet information by segment for each of Hertz Global and Hertz, as well as Adjusted Pre-tax Income (Loss), the segment measure of profitability.
Reconciliations of Adjusted Pre-tax Income (Loss) by segment to consolidated amounts are summarized below. Hertz Global
Hertz
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Guarantor and Non-Guarantor Condensed Consolidating Financial Information - Hertz |
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Guarantor and Non-Guarantor Condensed Consolidating Financial Statements Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Guarantor and Non-Guarantor Condensed Consolidating Financial Information - Hertz | Guarantor and Non-Guarantor Condensed Consolidating Financial Information - Hertz The following tables present the Condensed Consolidating Balance Sheets as of March 31, 2019 and December 31, 2018, the Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) for the three months ended March 31, 2019 and 2018 and the Condensed Consolidating Statements of Cash Flows for the three months ended March 31, 2019 and 2018 of (a) The Hertz Corporation, ("Parent”); (b) the Parent's subsidiaries that guarantee the Senior Notes issued by the Parent ("Guarantor Subsidiaries"); (c) the Parent's subsidiaries that do not guarantee the Senior Notes issued by the Parent ("Non-Guarantor Subsidiaries"); (d) elimination entries necessary to consolidate the Parent with the Guarantor Subsidiaries and Non-Guarantor Subsidiaries ("Eliminations"); and (e) Hertz 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. 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 Facilities and Senior Second Priority Secured Notes, and consequently will not be available to satisfy the claims of Hertz general creditors. In lieu of providing separate unaudited financial statements for the Guarantor Subsidiaries, Hertz has included the accompanying condensed consolidating financial statements based on Rule 3-10 of the SEC's Regulation S-X. Management of Hertz does not believe that separate financial statements of the Guarantor Subsidiaries are material to Hertz's investors; therefore, separate financial statements and other disclosures concerning the Guarantor Subsidiaries are not presented. THE HERTZ CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATING BALANCE SHEET March 31, 2019 (In millions)
THE HERTZ CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATING BALANCE SHEET December 31, 2018 (In millions)
THE HERTZ CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) For the Three Months Ended March 31, 2019 (In millions)
For the Three Months Ended March 31, 2018 (In millions)
THE HERTZ CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the Three Months Ended March 31, 2019 (In millions)
THE HERTZ CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the Three Months Ended March 31, 2018 (In millions)
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Basis of Presentation and Recently Issued Accounting Pronouncements (Policies) |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Principles of Consolidation | Principles of Consolidation The unaudited condensed consolidated financial statements of Hertz Global include the accounts of Hertz Global and its wholly owned and majority owned U.S. and international subsidiaries, and its VIEs, as applicable. The unaudited condensed consolidated financial statements of Hertz include the accounts of Hertz, its wholly owned and majority owned U.S. and international subsidiaries, and its VIEs, as applicable. The Company consolidates a VIE when it is deemed the primary beneficiary. The Company accounts for its investment in joint ventures using the equity method when it has significant influence but not control and is not the primary beneficiary. All significant intercompany transactions have been eliminated in consolidation. |
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Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Adopted Leases In February 2016, the Financial Accounting Standards Board (the "FASB") issued guidance that replaced the existing lease guidance in U.S. GAAP and in 2018 and 2019 issued amendments and updates to the new lease standard (collectively "Topic 842"). Topic 842 established a right-of-use (“ROU”) model that requires a lessee to record on the balance sheet a ROU asset and corresponding lease liability based on the present value of future lease payments. Leases are classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. Topic 842 also expanded the requirements for lessees to record leases embedded in other arrangements. Additionally, enhanced quantitative and qualitative disclosures surrounding leases are required which provide financial statement users the ability to assess the amount, timing and uncertainty of cash flows arising from leases. The Company adopted this guidance effective January 1, 2019 using a simplified transition approach for both lessees and lessors. Prior periods have not been retrospectively adjusted and are in conformance with the then existing guidance under U.S. GAAP ("Topic 840"). The Company utilized the package of practical expedients for existing or expired contracts and did not reassess whether such contracts contain leases, the lease classification or the initial direct costs. Additionally, the Company utilized the historical lease term and did not utilize the practical expedient allowing the use of hindsight in determining the lease term and in assessing impairment of its ROU assets. To determine the present value of its lease payments as of January 1, 2019, the Company utilized the interest rate implicit in the lease agreement. If the implicit interest rate was not provided in the lease agreement, the Company utilized the Company's collateralized incremental borrowing rate as of January 1, 2019. Also, with respect to the Company's real estate leases, vehicle leases and fleet leases, the Company availed itself of the practical expedient for lessees and lessors and elected an accounting policy by class of underlying asset to combine lease and non-lease components. As of January 1, 2019, the Company accounts for revenue earned from vehicle rentals and rental related activities wherein an identified asset is transferred to the customer and the customer has the ability to control that asset under Topic 842. Prior to the adoption of Topic 842, the Company accounted for such revenue under Revenue from Contracts with Customers ("Topic 606"). The cumulative effect of applying the new guidance to all leases as of January 1, 2019 that were not completed and with lease terms in excess of twelve months has been recorded as of the adoption date as follows: Hertz Global
Hertz
Adoption of Topic 842 did not impact the Company's results of operations or cash flows. See Note 4, "Leases," for information regarding the Company’s accounting policies for leases, as well as other required disclosures under Topic 842. Not Yet Adopted Changes to Disclosure Requirements for Defined Benefit Plans In August 2018, the FASB issued guidance that modifies disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans to remove disclosures no longer considered cost beneficial, add disclosures identified as relevant and clarify certain disclosure requirements. The guidance is effective for annual periods beginning after December 15, 2020 using a retrospective transition method. Early adoption is permitted. The Company is in the process of determining the timing of adoption and assessing the overall impact of adopting this guidance on its disclosures. Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement In August 2018, the FASB issued guidance on a customer's accounting for implementation fees paid in a cloud computing service contract arrangement that addresses which implementation costs to capitalize as an asset and which costs to expense. Capitalized implementation fees are to be expensed over the term of the cloud computing arrangement, and the expense is required to be recognized in the same line item in the income statement as the associated hosting service expenses. The entity is also required to present the capitalized implementation fees on the balance sheet in the same line item as the prepayment for hosting service fees associated with the cloud computing arrangement. The guidance is effective for annual periods beginning after December 15, 2019, and interim periods within those annual periods using a retrospective or prospective transition method. Early adoption is permitted, including adoption in any interim period. The Company intends to adopt this guidance when effective, on January 1, 2020, using a prospective transition method and is in the process of assessing the overall impact of adopting this guidance on its financial position, results of operations and cash flows. |
Basis of Presentation and Recently Issued Accounting Pronouncements (Tables) |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The cumulative effect of applying the new guidance to all leases as of January 1, 2019 that were not completed and with lease terms in excess of twelve months has been recorded as of the adoption date as follows: Hertz Global
Hertz
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Debt (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of debt | The Company's debt, including its available credit facilities, consists of the following ($ in millions):
N/A - Not applicable
The fair value of debt is estimated based on quoted market rates as well as borrowing rates currently available to the Company for loans with similar terms and average maturities (Level 2 inputs).
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Schedule of facilities available for the use of the company and its subsidiaries | The following facilities were available to the Company as of March 31, 2019 and are presented net of any outstanding letters of credit:
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Leases (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating Lease, Lease Income |
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Schedule of Operating Lease Costs |
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Operating Lease, Disclosure |
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Lessee, Operating Lease, Liability, Maturity | March 31, 2019:
|
Earnings (Loss) Per Share - Hertz Global (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the computation of basic and diluted earnings (loss) per share:
|
Fair Value Measurements (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash, Cash Equivalents and Investments | The following table summarizes the ending balances of the Company's cash equivalents, restricted cash equivalents and investments:
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Components of debt | The Company's debt, including its available credit facilities, consists of the following ($ in millions):
N/A - Not applicable
The fair value of debt is estimated based on quoted market rates as well as borrowing rates currently available to the Company for loans with similar terms and average maturities (Level 2 inputs).
|
Segment Information (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment | The following tables provide significant statement of operations and balance sheet information by segment for each of Hertz Global and Hertz, as well as Adjusted Pre-tax Income (Loss), the segment measure of profitability.
Reconciliations of Adjusted Pre-tax Income (Loss) by segment to consolidated amounts are summarized below. Hertz Global
Hertz
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Guarantor and Non-Guarantor Condensed Consolidating Financial Information - Hertz (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Guarantor and Non-Guarantor Condensed Consolidating Financial Statements Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Balance Sheet | THE HERTZ CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATING BALANCE SHEET March 31, 2019 (In millions)
THE HERTZ CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATING BALANCE SHEET December 31, 2018 (In millions)
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Condensed Income Statement | THE HERTZ CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) For the Three Months Ended March 31, 2019 (In millions)
For the Three Months Ended March 31, 2018 (In millions)
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Condensed Cash Flow Statement | THE HERTZ CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the Three Months Ended March 31, 2019 (In millions)
THE HERTZ CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the Three Months Ended March 31, 2018 (In millions)
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Basis of Presentation and Recently Issued Accounting Pronouncements (Narrative) (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Net income (loss) | $ (148) | $ (202) |
Basis of Presentation and Recently Issued Accounting Pronouncements (Recent Issued Accounting Pronouncements) (Details) - USD ($) $ in Millions |
Mar. 31, 2019 |
Jan. 01, 2019 |
Dec. 31, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
|||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Balance Sheet Related Disclosures [Abstract] | ||||||||||||
Operating Lease Right-of-Use Assets | $ 1,514 | $ 1,585 | ||||||||||
Prepaid and Other Assets | 1,107 | 857 | ||||||||||
Total Assets | 24,030 | [1] | 22,922 | $ 21,382 | [1] | |||||||
Operating Lease Liabilities | 1,513 | 1,588 | ||||||||||
Accrued Liabilities | 1,330 | 1,256 | ||||||||||
Total liabilities | [1] | 23,025 | 20,262 | |||||||||
Accumulated deficit | (1,056) | (909) | ||||||||||
Total equity | 1,005 | 1,120 | $ 1,138 | $ 1,520 | ||||||||
Total liabilities and equity | 24,030 | 21,382 | ||||||||||
Accounting Standards Update 2014-09 | ||||||||||||
Balance Sheet Related Disclosures [Abstract] | ||||||||||||
Total liabilities | 21,802 | |||||||||||
Total liabilities and equity | 22,922 | |||||||||||
The Hertz Corporation | ||||||||||||
Balance Sheet Related Disclosures [Abstract] | ||||||||||||
Operating Lease Right-of-Use Assets | 1,514 | |||||||||||
Prepaid and Other Assets | 1,107 | |||||||||||
Total Assets | [2] | 24,030 | 21,382 | |||||||||
Operating Lease Liabilities | 1,513 | |||||||||||
Accrued Liabilities | 1,330 | |||||||||||
Total liabilities | [2] | 23,027 | 20,264 | |||||||||
Accumulated deficit | (2,029) | (1,884) | ||||||||||
Total equity | 1,003 | 1,118 | $ 1,138 | $ 1,520 | ||||||||
Total liabilities and equity | $ 24,030 | 21,382 | ||||||||||
The Hertz Corporation | Accounting Standards Update 2014-09 | ||||||||||||
Balance Sheet Related Disclosures [Abstract] | ||||||||||||
Operating Lease Right-of-Use Assets | 1,585 | |||||||||||
Prepaid and Other Assets | 857 | |||||||||||
Total Assets | 22,922 | |||||||||||
Operating Lease Liabilities | 1,588 | |||||||||||
Accrued Liabilities | 1,256 | |||||||||||
Total liabilities | 21,804 | |||||||||||
Total liabilities and equity | 22,922 | |||||||||||
Calculated under Revenue Guidance in Effect before Topic 606 | ||||||||||||
Balance Sheet Related Disclosures [Abstract] | ||||||||||||
Operating Lease Right-of-Use Assets | 0 | |||||||||||
Prepaid and Other Assets | 902 | |||||||||||
Total Assets | 21,382 | |||||||||||
Operating Lease Liabilities | 0 | |||||||||||
Accrued Liabilities | 1,304 | |||||||||||
Calculated under Revenue Guidance in Effect before Topic 606 | Accounting Standards Update 2014-09 | ||||||||||||
Balance Sheet Related Disclosures [Abstract] | ||||||||||||
Total liabilities | 20,262 | |||||||||||
Total liabilities and equity | 21,382 | |||||||||||
Calculated under Revenue Guidance in Effect before Topic 606 | The Hertz Corporation | Accounting Standards Update 2014-09 | ||||||||||||
Balance Sheet Related Disclosures [Abstract] | ||||||||||||
Operating Lease Right-of-Use Assets | 0 | |||||||||||
Prepaid and Other Assets | 902 | |||||||||||
Total Assets | 21,382 | |||||||||||
Operating Lease Liabilities | 0 | |||||||||||
Accrued Liabilities | 1,304 | |||||||||||
Total liabilities | 20,264 | |||||||||||
Total liabilities and equity | $ 21,382 | |||||||||||
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | ||||||||||||
Balance Sheet Related Disclosures [Abstract] | ||||||||||||
Operating Lease Right-of-Use Assets | 1,585 | |||||||||||
Prepaid and Other Assets | (45) | |||||||||||
Total Assets | 1,540 | |||||||||||
Operating Lease Liabilities | 1,588 | |||||||||||
Accrued Liabilities | (48) | |||||||||||
Total liabilities | 1,540 | |||||||||||
Total liabilities and equity | 1,540 | |||||||||||
Difference between Revenue Guidance in Effect before and after Topic 606 | The Hertz Corporation | Accounting Standards Update 2014-09 | ||||||||||||
Balance Sheet Related Disclosures [Abstract] | ||||||||||||
Operating Lease Right-of-Use Assets | 1,585 | |||||||||||
Prepaid and Other Assets | (45) | |||||||||||
Total Assets | 1,540 | |||||||||||
Operating Lease Liabilities | 1,588 | |||||||||||
Accrued Liabilities | (48) | |||||||||||
Total liabilities | 1,540 | |||||||||||
Total liabilities and equity | $ 1,540 | |||||||||||
|
Debt (Schedule of Debt) (Details) $ in Millions |
Mar. 31, 2019
USD ($)
€ / $
|
Mar. 31, 2019
EUR (€)
€ / $
|
Dec. 31, 2018
USD ($)
€ / $
|
---|---|---|---|
Debt Instrument [Line Items] | |||
Debt: | $ 17,257 | $ 16,324 | |
Total Non-Vehicle Debt | |||
Debt Instrument [Line Items] | |||
Unamortized Net Discount | (30) | (33) | |
Debt: | $ 4,430 | 4,422 | |
Senior Term Loan | |||
Debt Instrument [Line Items] | |||
Average interest rate (as a percent) | 5.25% | 5.25% | |
Outstanding principal | $ 670 | 674 | |
Senior RCF | |||
Debt Instrument [Line Items] | |||
Outstanding principal | $ 0 | 0 | |
Senior Notes | |||
Debt Instrument [Line Items] | |||
Average interest rate (as a percent) | 6.13% | 6.13% | |
Outstanding principal | $ 2,500 | 2,500 | |
5.875% Senior Notes due October 2020 | |||
Debt Instrument [Line Items] | |||
Outstanding principal | $ 700 | 700 | |
Interest rate | 5.875% | 5.875% | |
7.375% Senior Notes due January 2021 | |||
Debt Instrument [Line Items] | |||
Outstanding principal | $ 500 | 500 | |
Interest rate | 7.375% | 7.375% | |
6.250% Senior Notes due October 2022 | |||
Debt Instrument [Line Items] | |||
Outstanding principal | $ 500 | 500 | |
Interest rate | 6.25% | 6.25% | |
5.500% Senior Notes due October 2024 | |||
Debt Instrument [Line Items] | |||
Outstanding principal | $ 800 | 800 | |
Interest rate | 5.50% | 5.50% | |
Senior Second Priority Secured Notes | |||
Debt Instrument [Line Items] | |||
Average interest rate (as a percent) | 7.63% | 7.63% | |
Outstanding principal | $ 1,250 | 1,250 | |
Promissory Notes | |||
Debt Instrument [Line Items] | |||
Average interest rate (as a percent) | 7.00% | 7.00% | |
Outstanding principal | $ 27 | 27 | |
Non-Vehicle Debt | |||
Debt Instrument [Line Items] | |||
Average interest rate (as a percent) | 6.14% | 6.14% | |
Outstanding principal | $ 13 | 4 | |
Total Vehicle Debt | |||
Debt Instrument [Line Items] | |||
Unamortized Net Discount | (43) | (43) | |
Debt: | 12,827 | 11,902 | |
Total | |||
Debt Instrument [Line Items] | |||
Outstanding principal | $ 3,570 | 2,940 | |
HVF II Series 2013-A | |||
Debt Instrument [Line Items] | |||
Average interest rate (as a percent) | 3.67% | 3.67% | |
Outstanding principal | $ 3,570 | 2,940 | |
HVF II Series 2013-B | |||
Debt Instrument [Line Items] | |||
Outstanding principal | 0 | 0 | |
HVF II U.S. Fleet Variable Medium Term Notes | |||
Debt Instrument [Line Items] | |||
Outstanding principal | $ 5,494 | 5,260 | |
U.S. Fleet Medium Term Notes 2015 Series 1 | |||
Debt Instrument [Line Items] | |||
Average interest rate (as a percent) | 2.93% | 2.93% | |
Outstanding principal | $ 780 | 780 | |
U.S. Fleet Medium Term Notes 2015 Series 3 | |||
Debt Instrument [Line Items] | |||
Average interest rate (as a percent) | 3.10% | 3.10% | |
Outstanding principal | $ 371 | 371 | |
U.S. Fleet Medium Term Notes 2016 Series 1 | |||
Debt Instrument [Line Items] | |||
Outstanding principal | $ 0 | 466 | |
U.S. Fleet Medium Term Notes 2016 Series 2 | |||
Debt Instrument [Line Items] | |||
Average interest rate (as a percent) | 3.41% | 3.41% | |
Outstanding principal | $ 595 | 595 | |
U.S. Fleet Medium Term Notes 2016 Series 3 | |||
Debt Instrument [Line Items] | |||
Average interest rate (as a percent) | 2.72% | 2.72% | |
Outstanding principal | $ 424 | 424 | |
U.S. Fleet Medium Term Notes 2016 Series 4 | |||
Debt Instrument [Line Items] | |||
Average interest rate (as a percent) | 3.09% | 3.09% | |
Outstanding principal | $ 424 | 424 | |
U.S. Fleet Medium Term Notes 2017 Series 1 | |||
Debt Instrument [Line Items] | |||
Average interest rate (as a percent) | 3.38% | 3.38% | |
Outstanding principal | $ 450 | 450 | |
U.S. Fleet Medium Term Notes 2017 Series 2 | |||
Debt Instrument [Line Items] | |||
Average interest rate (as a percent) | 3.57% | 3.57% | |
Outstanding principal | $ 350 | 350 | |
U.S. Fleet Medium Term Notes 2018 Series 1 | |||
Debt Instrument [Line Items] | |||
Average interest rate (as a percent) | 3.41% | 3.41% | |
Outstanding principal | $ 1,000 | 1,000 | |
U.S. Fleet Medium Term Notes 2018 Series 2 | |||
Debt Instrument [Line Items] | |||
Average interest rate (as a percent) | 3.80% | 3.80% | |
Outstanding principal | $ 200 | 200 | |
U.S. Fleet Medium Term Notes 2018 Series 3 | |||
Debt Instrument [Line Items] | |||
Average interest rate (as a percent) | 4.15% | 4.15% | |
Outstanding principal | $ 200 | 200 | |
U.S. Fleet Medium Term Notes 2019 Series 1 | |||
Debt Instrument [Line Items] | |||
Average interest rate (as a percent) | 3.85% | 3.85% | |
Outstanding principal | $ 700 | 0 | |
Donlen ABS Program | |||
Debt Instrument [Line Items] | |||
Outstanding principal | $ 482 | 320 | |
HFLF Series 2013-2 Notes | |||
Debt Instrument [Line Items] | |||
Average interest rate (as a percent) | 3.86% | 3.86% | |
Outstanding principal | $ 482 | 320 | |
HFLF Variable Funding Notes | |||
Debt Instrument [Line Items] | |||
Outstanding principal | 1,038 | 1,151 | |
HFLF Series 2015-1 | |||
Debt Instrument [Line Items] | |||
Outstanding principal | $ 0 | 33 | |
HFLF Series 2016-1 | |||
Debt Instrument [Line Items] | |||
Average interest rate (as a percent) | 3.81% | 3.81% | |
Outstanding principal | $ 136 | 171 | |
HFLF Series 2017-1 | |||
Debt Instrument [Line Items] | |||
Average interest rate (as a percent) | 2.86% | 2.86% | |
Outstanding principal | $ 352 | 397 | |
HFLF Series 2018-1 | |||
Debt Instrument [Line Items] | |||
Average interest rate (as a percent) | 3.28% | 3.28% | |
Outstanding principal | $ 550 | 550 | |
Other Fleet Debt | |||
Debt Instrument [Line Items] | |||
Outstanding principal | $ 2,286 | 2,274 | |
U.S. Vehicle RCF | |||
Debt Instrument [Line Items] | |||
Average interest rate (as a percent) | 4.98% | 4.98% | |
Outstanding principal | $ 146 | 146 | |
European Fleet Notes | |||
Debt Instrument [Line Items] | |||
Average interest rate (as a percent) | 5.07% | 5.07% | |
Outstanding principal | $ 815 | $ 829 | |
Foreign currency exchange rate (EURO to USD) | € / $ | 1.12 | 1.12 | 1.14 |
4.375% Senior Notes due January 2019 | |||
Debt Instrument [Line Items] | |||
Interest rate | 4.375% | 4.375% | |
Face Amount | € | € 425,000,000 | ||
4.125% Senior Notes due October 2021 | |||
Debt Instrument [Line Items] | |||
Outstanding principal | $ 253 | $ 257 | |
Interest rate | 4.125% | 4.125% | |
Face Amount | € | € 225,000,000 | ||
European Fleet Notes, 5.500%, Due March 2023 | |||
Debt Instrument [Line Items] | |||
Outstanding principal | $ 562 | 572 | |
Interest rate | 5.50% | 5.50% | |
Face Amount | € | € 500,000,000 | ||
European ABS | |||
Debt Instrument [Line Items] | |||
Average interest rate (as a percent) | 1.75% | 1.75% | |
Outstanding principal | $ 585 | 600 | |
Canadian Securitization | |||
Debt Instrument [Line Items] | |||
Average interest rate (as a percent) | 3.57% | 3.57% | |
Outstanding principal | $ 261 | 220 | |
Australian Securitization | |||
Debt Instrument [Line Items] | |||
Average interest rate (as a percent) | 3.56% | 3.56% | |
Outstanding principal | $ 155 | 155 | |
New Zealand RCF | |||
Debt Instrument [Line Items] | |||
Average interest rate (as a percent) | 4.60% | 4.60% | |
Outstanding principal | $ 41 | 40 | |
UK Leveraged Financing | |||
Debt Instrument [Line Items] | |||
Average interest rate (as a percent) | 3.08% | 3.08% | |
Outstanding principal | $ 244 | 242 | |
Other Vehicle Debt | |||
Debt Instrument [Line Items] | |||
Average interest rate (as a percent) | 3.98% | 3.98% | |
Outstanding principal | $ 39 | $ 42 |
Debt (Narrative) (Details) |
3 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Mar. 31, 2019
USD ($)
|
Mar. 31, 2018
USD ($)
|
Oct. 31, 2019
CAD ($)
|
Apr. 30, 2019
CAD ($)
|
Mar. 31, 2019
EUR (€)
|
Feb. 28, 2019
USD ($)
|
Dec. 31, 2018
USD ($)
|
|
Debt Instrument [Line Items] | |||||||
Adjustments: | $ (149,000,000) | $ (231,000,000) | |||||
HFLF Variable Funding Notes | |||||||
Debt Instrument [Line Items] | |||||||
Outstanding principal | 1,038,000,000 | $ 1,151,000,000 | |||||
European Vehicle Notes | |||||||
Debt Instrument [Line Items] | |||||||
Outstanding principal | 815,000,000 | 829,000,000 | |||||
HVF II Series 2019-A Variable Funding Rental Car Asset Backed Notes | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | $ 500,000,000 | ||||||
HVF II U.S. Vehicle Medium Term Notes, Series 2019-1 Rental Car Asset Backed Notes, Class A, B, C and D | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | 745,000,000 | ||||||
European ABS | |||||||
Debt Instrument [Line Items] | |||||||
Outstanding principal | 585,000,000 | 600,000,000 | |||||
UK Leveraged Financing | |||||||
Debt Instrument [Line Items] | |||||||
Outstanding principal | 244,000,000 | 242,000,000 | |||||
New Zealand RCF | |||||||
Debt Instrument [Line Items] | |||||||
Outstanding principal | 41,000,000 | 40,000,000 | |||||
HFLF Series 2015-1 | |||||||
Debt Instrument [Line Items] | |||||||
Outstanding principal | 0 | 33,000,000 | |||||
Canadian Securitization | |||||||
Debt Instrument [Line Items] | |||||||
Outstanding principal | $ 261,000,000 | 220,000,000 | |||||
Senior RCF | |||||||
Debt Instrument [Line Items] | |||||||
Fixed charge coverage ratio, number of quarters | 1 year | ||||||
Senior RCF | |||||||
Debt Instrument [Line Items] | |||||||
Outstanding principal | $ 0 | 0 | |||||
Senior Term Loan | |||||||
Debt Instrument [Line Items] | |||||||
Outstanding principal | 670,000,000 | 674,000,000 | |||||
5.500% Senior Notes due October 2024 | |||||||
Debt Instrument [Line Items] | |||||||
Outstanding principal | $ 800,000,000 | 800,000,000 | |||||
Interest rate | 5.50% | 5.50% | |||||
U.S. Vehicle RCF | |||||||
Debt Instrument [Line Items] | |||||||
Outstanding principal | $ 146,000,000 | 146,000,000 | |||||
HFLF Series 2013-2 Notes | |||||||
Debt Instrument [Line Items] | |||||||
Outstanding principal | 482,000,000 | 320,000,000 | |||||
HFLF Series 2017-1 | |||||||
Debt Instrument [Line Items] | |||||||
Outstanding principal | 352,000,000 | 397,000,000 | |||||
HFLF Series 2016-1 | |||||||
Debt Instrument [Line Items] | |||||||
Outstanding principal | 136,000,000 | 171,000,000 | |||||
4.125% Senior Notes due October 2021 | |||||||
Debt Instrument [Line Items] | |||||||
Outstanding principal | $ 253,000,000 | 257,000,000 | |||||
Interest rate | 4.125% | 4.125% | |||||
Face Amount | € | € 225,000,000 | ||||||
Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Outstanding principal | $ 2,500,000,000 | 2,500,000,000 | |||||
HVF II Series 2013-A | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | 400,000,000 | ||||||
Outstanding principal | 3,570,000,000 | 2,940,000,000 | |||||
HVF II Series 2013-B | |||||||
Debt Instrument [Line Items] | |||||||
Outstanding principal | 0 | 0 | |||||
HFLF Series 2018-1 | |||||||
Debt Instrument [Line Items] | |||||||
Outstanding principal | 550,000,000 | 550,000,000 | |||||
European Fleet Notes, 5.500%, Due March 2023 | |||||||
Debt Instrument [Line Items] | |||||||
Outstanding principal | $ 562,000,000 | 572,000,000 | |||||
Interest rate | 5.50% | 5.50% | |||||
Face Amount | € | € 500,000,000 | ||||||
Letter of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Outstanding standby letters of credit | $ 714,000,000 | ||||||
Vehicles | |||||||
Debt Instrument [Line Items] | |||||||
Repayments of principal in next twelve months | 2,600,000,000 | ||||||
Repayments of debt | 2,736,000,000 | 3,283,000,000 | |||||
Proceeds from issuance of debt | 3,667,000,000 | 5,181,000,000 | |||||
Non-vehicle | |||||||
Debt Instrument [Line Items] | |||||||
Repayments of principal in next twelve months | 19,000,000 | ||||||
Repayments of debt | 344,000,000 | 131,000,000 | |||||
Proceeds from issuance of debt | 341,000,000 | $ 127,000,000 | |||||
Revolving Credit Facility | Senior RCF | |||||||
Debt Instrument [Line Items] | |||||||
Outstanding standby letters of credit | 403,000,000 | ||||||
Letter of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | 400,000,000 | ||||||
Letter of Credit | Senior RCF | |||||||
Debt Instrument [Line Items] | |||||||
Outstanding standby letters of credit | $ 304,000,000 | ||||||
International Fleet Financing No. 2 B.V. | |||||||
Debt Instrument [Line Items] | |||||||
Ownership percentage | 25.00% | ||||||
VIE, total assets | $ 1,000,000,000 | 946,000,000 | |||||
VIE, total liabilities | $ 1,000,000,000 | $ 946,000,000 | |||||
Affiliated Entity | HVF II U.S. Vehicle Medium Term Notes, Series 2019-1 Rental Car Asset Backed Notes, Class D | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | $ 45,000,000 | ||||||
Forecast | Revolving Credit Facility | Funding LP Series 2015-A Notes | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | $ 350,000,000 | ||||||
Subsequent Event | Revolving Credit Facility | Canadian Securitization, Due October 2018 | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | $ 90,000,000 |
Debt (Borrowing Capacity) (Details) $ in Millions |
Mar. 31, 2019
USD ($)
|
---|---|
Debt Instrument [Line Items] | |
Remaining capacity | $ 2,121 |
Availability under borrowing base limitation | 531 |
Total Non-Vehicle Debt | |
Debt Instrument [Line Items] | |
Remaining capacity | 461 |
Availability under borrowing base limitation | 461 |
Senior RCF | |
Debt Instrument [Line Items] | |
Remaining capacity | 459 |
Availability under borrowing base limitation | 459 |
Letter of Credit Facility | |
Debt Instrument [Line Items] | |
Remaining capacity | 2 |
Availability under borrowing base limitation | 2 |
Total Vehicle Debt | |
Debt Instrument [Line Items] | |
Remaining capacity | 1,660 |
Availability under borrowing base limitation | 70 |
U.S. Vehicle RCF | |
Debt Instrument [Line Items] | |
Remaining capacity | 0 |
Availability under borrowing base limitation | 0 |
HVF II U.S. Vehicle Variable Funding Notes | |
Debt Instrument [Line Items] | |
Remaining capacity | 995 |
Availability under borrowing base limitation | 0 |
HFLF Variable Funding Notes | |
Debt Instrument [Line Items] | |
Remaining capacity | 18 |
Availability under borrowing base limitation | 2 |
European ABS | |
Debt Instrument [Line Items] | |
Remaining capacity | 540 |
Availability under borrowing base limitation | 68 |
Canadian Securitization | |
Debt Instrument [Line Items] | |
Remaining capacity | 0 |
Availability under borrowing base limitation | 0 |
Australian Securitization | |
Debt Instrument [Line Items] | |
Remaining capacity | 22 |
Availability under borrowing base limitation | 0 |
U.K. Financing Facility | |
Debt Instrument [Line Items] | |
Remaining capacity | 85 |
Availability under borrowing base limitation | 0 |
New Zealand RCF | |
Debt Instrument [Line Items] | |
Remaining capacity | 0 |
Availability under borrowing base limitation | $ 0 |
Debt (Covenant Ratios) (Details) |
Mar. 31, 2019 |
---|---|
Senior Revolving Credit Facility and Letter of Credit Facility | |
Debt Instrument [Line Items] | |
Maximum consolidated leverage ratio | 3.00 |
Leases - Lease Income (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Lessee, Lease, Description [Line Items] | ||
Lease Term, Remaining Economic Life of Underlying Asset, Minimum Threshold | 75.00% | |
Lease Term, Remaining Economic Life of Underlying Asset, Last Remaining Life of Underlying Asset, Percent | 25.00% | |
Present Value Threshold of Aggregate Lease Payments, Fair Value of Underlying Asset | 90.00% | |
Operating Leases, Lease Income [Abstract] | ||
Lease income | $ 2,025 | |
Revenue accounted for under Topic 606 | 82 | |
Revenues | 2,107 | $ 2,063 |
Vehicle Rentals, Operating Lease | ||
Operating Leases, Lease Income [Abstract] | ||
Lease income | 1,800 | |
Fleet Leasing, Operating Lease | ||
Operating Leases, Lease Income [Abstract] | ||
Lease income | 158 | |
Variable, Operating Lease | ||
Operating Leases, Lease Income [Abstract] | ||
Lease income | $ 67 | |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Lease, term | 1 month | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Lease, term | 35 years |
Leases - Lease Costs (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Lease, Cost [Abstract] | ||
Short-term lease costs | $ 30 | |
Other operating lease costs | 134 | |
Total | 164 | $ 577 |
Variable lease costs | 63 | 438 |
Total lease costs | $ 227 | $ 1,015 |
Leases - Schedule of Weighted Average Lease Term and Discount Rates (Details) |
3 Months Ended |
---|---|
Mar. 31, 2019 | |
Leases [Abstract] | |
Weighted average remaining lease term (in years) | 9 years |
Weighted average discount rate | 10.90% |
Leases - Schedule of Operating Lease Fiscal Year Maturity (Details) - USD ($) $ in Millions |
Mar. 31, 2019 |
Jan. 01, 2019 |
---|---|---|
Leases [Abstract] | ||
April 1, 2019 - March 31, 2020 | $ 465 | |
April 1, 2020 - March 31, 2021 | 379 | |
April 1, 2021 - March 31, 2022 | 305 | |
April 1, 2022 - March 31, 2023 | 226 | |
April 1, 2023 - March 31, 2024 | 166 | |
After March 31, 2024 | 930 | |
Total lease payments | 2,471 | |
Interest | (958) | |
Operating lease liabilities at March 31, 2019 | $ 1,513 | $ 1,588 |
Income Tax (Provision) Benefit (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Income Tax Contingency [Line Items] | ||
Effective tax rate (as percent) | 1.00% | 13.00% |
Income tax (provision) benefit | $ (1) | $ (29) |
The Hertz Corporation | ||
Income Tax Contingency [Line Items] | ||
Effective tax rate (as percent) | 1.00% | 13.00% |
Income tax (provision) benefit | $ (1) | $ (29) |
Earnings (Loss) Per Share - Hertz Global (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Numerator: | ||
Net income (loss) | $ (148) | $ (202) |
Net (income) loss attributable to noncontrolling interests | 1 | 0 |
Net income (loss) attributable to Hertz Global | $ (147) | $ (202) |
Denominator: | ||
Basic weighted average shares outstanding | 84 | 83 |
Dilutive stock options, RSUs and PSUs | 0 | 0 |
Weighted average shares used to calculate diluted earnings (loss) per share | 84 | 83 |
Earnings (loss) per share: | ||
Basic earnings (loss) per share (in dollars per share) | $ (1.75) | $ (2.43) |
Diluted earnings (loss) per share (in dollars per share) | $ (1.75) | $ (2.43) |
Antidilutive stock options, RSUs and PSUs | ||
Denominator: | ||
Antidilutive stock options, RSUs, PSUs and PSAs | 2 | 3 |
Fair Value Measurements (Cash and Cash Equivalents and Investments) (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Money market funds and time deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $ 250 | $ 701 |
Money market funds and time deposits | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 250 | 701 |
Money market funds and time deposits | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Money market funds and time deposits | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 55 | 44 |
Equity securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 55 | 44 |
Equity securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Equity securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $ 0 | $ 0 |
Fair Value Measurements (Financial Instruments) (Details) - Fair Value, Measurements, Recurring - Level 2 - USD ($) $ in Millions |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Fair Value of Financial Instruments [Abstract] | ||
Nominal Unpaid Principal Balance | $ 16,400 | |
Aggregate Fair Value | $ 17,189 | 15,902 |
Non-Vehicle Debt | ||
Fair Value of Financial Instruments [Abstract] | ||
Nominal Unpaid Principal Balance | 4,455 | |
Aggregate Fair Value | 4,304 | 4,011 |
Total Vehicle Debt | ||
Fair Value of Financial Instruments [Abstract] | ||
Nominal Unpaid Principal Balance | 11,945 | |
Aggregate Fair Value | $ 12,885 | $ 11,891 |
Contingencies and Off-Balance Sheet Commitments (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Dec. 31, 2018 |
|
Commitments and Contingencies Disclosure [Abstract] | ||
Public liability and property damage | $ 411 | $ 418 |
Net proceeds from repayment or recovery | 15.00% |
Related Party Transactions (Details) - USD ($) $ in Millions |
3 Months Ended | ||||
---|---|---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
Dec. 31, 2018 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Related Party Transaction [Line Items] | |||||
Due from related parties | $ 425 | $ 425 | |||
Contributions from noncontrolling interests | $ 25 | $ 5 | |||
Master Loan Agreement | |||||
Related Party Transaction [Line Items] | |||||
Due from related parties | 121 | $ 117 | |||
Tax Related Liability | |||||
Related Party Transaction [Line Items] | |||||
Due from related parties | 65 | ||||
Mr. Icahn | |||||
Related Party Transaction [Line Items] | |||||
Purchases from related party | $ 12 | $ 6 | |||
Mr. Icahn | Tax Related Liability | |||||
Related Party Transaction [Line Items] | |||||
Due from related parties | $ 65 | ||||
767 Auto Leasing, LLC | |||||
Related Party Transaction [Line Items] | |||||
Lease, term | 18 months | ||||
Lessee, renewal term | 6 years | ||||
767 Auto Leasing, LLC | Master Motor Vehicle Lease and Management Agreement | |||||
Related Party Transaction [Line Items] | |||||
Operating income or loss, percent | 25.00% |
Segment Information (Details) $ in Millions |
3 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019
USD ($)
segment
|
Mar. 31, 2018
USD ($)
|
Jan. 01, 2019
USD ($)
|
Dec. 31, 2018
USD ($)
|
|||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | ||||||||||
Number of reportable segments | segment | 3 | |||||||||
Revenues | $ 2,107 | $ 2,063 | ||||||||
Depreciation of revenue earning vehicles and lease charges | 592 | 661 | ||||||||
Adjusted Pre-tax Income (Loss): | (111) | (175) | ||||||||
Total assets | 24,030 | [1] | $ 22,922 | $ 21,382 | [1] | |||||
Adjustments: | (149) | (231) | ||||||||
Acquisition accounting | ||||||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | ||||||||||
Adjustments: | (14) | (15) | ||||||||
Debt-related charges | ||||||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | ||||||||||
Adjustments: | (14) | (16) | ||||||||
Restructuring and restructuring related charges | ||||||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | ||||||||||
Adjustments: | (7) | (4) | ||||||||
Finance and Information Technology Transformation Costs | ||||||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | ||||||||||
Adjustments: | (23) | (23) | ||||||||
Other | ||||||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | ||||||||||
Adjustments: | 20 | 2 | ||||||||
Operating Segments | ||||||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | ||||||||||
Adjusted Pre-tax Income (Loss): | 32 | (32) | ||||||||
Operating Segments | U.S. Rental Car | ||||||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | ||||||||||
Revenues | 1,520 | 1,426 | ||||||||
Depreciation of revenue earning vehicles and lease charges | 386 | 434 | ||||||||
Adjusted Pre-tax Income (Loss): | 25 | (48) | ||||||||
Total assets | 16,375 | 13,983 | ||||||||
Operating Segments | International Rental Car | ||||||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | ||||||||||
Revenues | 433 | 468 | ||||||||
Depreciation of revenue earning vehicles and lease charges | 97 | 102 | ||||||||
Adjusted Pre-tax Income (Loss): | (18) | (6) | ||||||||
Total assets | 4,590 | 4,057 | ||||||||
Operating Segments | All Other Operations | ||||||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | ||||||||||
Revenues | 154 | 169 | ||||||||
Depreciation of revenue earning vehicles and lease charges | 109 | 125 | ||||||||
Adjusted Pre-tax Income (Loss): | 25 | 22 | ||||||||
Total assets | 1,934 | 1,843 | ||||||||
Corporate, Non-Segment | ||||||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | ||||||||||
Adjusted Pre-tax Income (Loss): | (143) | (143) | ||||||||
Total assets | 1,131 | 1,499 | ||||||||
The Hertz Corporation | ||||||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | ||||||||||
Gain (Loss) on Sale of Investments | (11) | |||||||||
Revenues | 2,107 | 2,063 | ||||||||
Depreciation of revenue earning vehicles and lease charges | 592 | 661 | ||||||||
Adjusted Pre-tax Income (Loss): | (109) | (174) | ||||||||
Total assets | [2] | 24,030 | $ 21,382 | |||||||
Adjustments: | (147) | (230) | ||||||||
The Hertz Corporation | Acquisition accounting | ||||||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | ||||||||||
Adjustments: | (14) | (15) | ||||||||
The Hertz Corporation | Debt-related charges | ||||||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | ||||||||||
Adjustments: | (14) | (16) | ||||||||
The Hertz Corporation | Restructuring and restructuring related charges | ||||||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | ||||||||||
Adjustments: | (7) | (4) | ||||||||
The Hertz Corporation | Finance and Information Technology Transformation Costs | ||||||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | ||||||||||
Adjustments: | (23) | (23) | ||||||||
The Hertz Corporation | Other | ||||||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | ||||||||||
Adjustments: | 20 | 2 | ||||||||
The Hertz Corporation | Operating Segments | ||||||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | ||||||||||
Adjusted Pre-tax Income (Loss): | 32 | (32) | ||||||||
The Hertz Corporation | Operating Segments | U.S. Rental Car | ||||||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | ||||||||||
Adjusted Pre-tax Income (Loss): | 25 | (48) | ||||||||
The Hertz Corporation | Operating Segments | International Rental Car | ||||||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | ||||||||||
Adjusted Pre-tax Income (Loss): | (18) | (6) | ||||||||
The Hertz Corporation | Operating Segments | All Other Operations | ||||||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | ||||||||||
Adjusted Pre-tax Income (Loss): | 25 | 22 | ||||||||
The Hertz Corporation | Corporate, Non-Segment | ||||||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | ||||||||||
Adjusted Pre-tax Income (Loss): | (141) | (142) | ||||||||
The Hertz Corporation | Segment Reconciling Items | ||||||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | ||||||||||
Adjusted Pre-tax Income (Loss): | $ 2 | $ 1 | ||||||||
Product Concentration Risk | Cost of Goods, Segment | All Other Operations | ||||||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | ||||||||||
Concentration risk, percentage (less than) | 1.00% | |||||||||
Product Concentration Risk | Revenues | All Other Operations | ||||||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | ||||||||||
Concentration risk, percentage (less than) | 1.00% | |||||||||
Non-vehicle | The Hertz Corporation | ||||||||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | ||||||||||
Gain on sale of non-vehicle capital assets | $ 8 | |||||||||
|
Guarantor and Non-Guarantor Condensed Consolidating Financial Information - Hertz (Balance Sheet) (Details) - USD ($) $ in Millions |
Mar. 31, 2019 |
Jan. 01, 2019 |
Dec. 31, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Jun. 30, 2017 |
|||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
ASSETS | ||||||||||||||
Cash and cash equivalents | $ 554 | $ 1,127 | ||||||||||||
Restricted cash and cash equivalents: | 452 | 283 | ||||||||||||
Total cash, cash equivalents, restricted cash and restricted cash equivalents | 1,006 | 1,410 | $ 1,940 | $ 1,504 | ||||||||||
Receivables, net of allowance | 1,563 | 1,587 | ||||||||||||
Due from affiliates | $ 425 | $ 425 | ||||||||||||
Prepaid expenses and other assets | 1,107 | $ 857 | ||||||||||||
Revenue earning vehicles, net | 13,768 | 12,419 | ||||||||||||
Property and equipment, net | 771 | 778 | ||||||||||||
Operating lease right-of-use assets | 1,514 | 1,585 | ||||||||||||
Intangible assets, net | 3,218 | 3,203 | ||||||||||||
Goodwill | 1,083 | 1,083 | ||||||||||||
Total assets | 24,030 | [1] | 22,922 | 21,382 | [1] | |||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||
Total accounts payable | 1,279 | 988 | ||||||||||||
Accrued liabilities | 1,330 | 1,256 | ||||||||||||
Accrued taxes, net | 146 | 136 | ||||||||||||
Debt | 17,257 | 16,324 | ||||||||||||
Operating lease liabilities at March 31, 2019 | 1,513 | $ 1,588 | ||||||||||||
Public liability and property damage | 411 | 418 | ||||||||||||
Deferred income taxes, net | 1,089 | 1,092 | ||||||||||||
Total liabilities | [1] | 23,025 | 20,262 | |||||||||||
Equity: | ||||||||||||||
Total stockholder's equity attributable to Hertz | 922 | 1,061 | ||||||||||||
Noncontrolling interests | 83 | 59 | ||||||||||||
Total stockholders' equity | 1,005 | 1,120 | 1,138 | 1,520 | ||||||||||
Total liabilities and stockholders' equity | 24,030 | 21,382 | ||||||||||||
Eliminations | ||||||||||||||
ASSETS | ||||||||||||||
Cash and cash equivalents | 0 | 0 | ||||||||||||
Restricted cash and cash equivalents: | 0 | 0 | ||||||||||||
Total cash, cash equivalents, restricted cash and restricted cash equivalents | 0 | 0 | 0 | 0 | ||||||||||
Receivables, net of allowance | 0 | 0 | ||||||||||||
Due from affiliates | (14,867) | (17,935) | ||||||||||||
Prepaid expenses and other assets | (4,306) | (4,264) | ||||||||||||
Revenue earning vehicles, net | 0 | 0 | ||||||||||||
Property and equipment, net | 0 | 0 | ||||||||||||
Operating lease right-of-use assets | 0 | |||||||||||||
Investment in subsidiaries, net | (9,129) | (9,174) | ||||||||||||
Intangible assets, net | 0 | 0 | ||||||||||||
Goodwill | 0 | 0 | ||||||||||||
Total assets | (28,302) | (31,373) | ||||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||
Due to affiliates | (14,867) | (17,935) | ||||||||||||
Total accounts payable | 0 | 0 | ||||||||||||
Accrued liabilities | 0 | 0 | ||||||||||||
Accrued taxes, net | (2,341) | (2,305) | ||||||||||||
Debt | 0 | 0 | ||||||||||||
Operating lease liabilities at March 31, 2019 | 0 | |||||||||||||
Public liability and property damage | 0 | 0 | ||||||||||||
Deferred income taxes, net | (1,965) | (1,959) | ||||||||||||
Total liabilities | (19,173) | (22,199) | ||||||||||||
Equity: | ||||||||||||||
Total stockholder's equity attributable to Hertz | (9,129) | (9,174) | ||||||||||||
Noncontrolling interests | 0 | 0 | ||||||||||||
Total stockholders' equity | (9,129) | (9,174) | ||||||||||||
Total liabilities and stockholders' equity | (28,302) | (31,373) | ||||||||||||
Parent (The Hertz Corporation) | ||||||||||||||
Equity: | ||||||||||||||
Total stockholder's equity attributable to Hertz | 1,059 | |||||||||||||
Noncontrolling interests | 0 | |||||||||||||
Total stockholders' equity | 1,059 | |||||||||||||
Total liabilities and stockholders' equity | 18,440 | |||||||||||||
Parent (The Hertz Corporation) | Reportable Legal Entities | ||||||||||||||
ASSETS | ||||||||||||||
Cash and cash equivalents | 173 | 576 | ||||||||||||
Restricted cash and cash equivalents: | 130 | 137 | ||||||||||||
Total cash, cash equivalents, restricted cash and restricted cash equivalents | 303 | 713 | 690 | 911 | ||||||||||
Receivables, net of allowance | 461 | 421 | ||||||||||||
Due from affiliates | 3,224 | 3,522 | ||||||||||||
Prepaid expenses and other assets | 5,085 | 4,863 | ||||||||||||
Revenue earning vehicles, net | 268 | 421 | ||||||||||||
Property and equipment, net | 611 | 590 | ||||||||||||
Operating lease right-of-use assets | 943 | |||||||||||||
Investment in subsidiaries, net | 7,569 | 7,648 | ||||||||||||
Intangible assets, net | 188 | 160 | ||||||||||||
Goodwill | 102 | 102 | ||||||||||||
Total assets | 18,754 | 18,440 | ||||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||
Due to affiliates | 10,833 | 11,351 | ||||||||||||
Total accounts payable | 395 | 388 | ||||||||||||
Accrued liabilities | 824 | 823 | ||||||||||||
Accrued taxes, net | 81 | 67 | ||||||||||||
Debt | 4,575 | 4,567 | ||||||||||||
Operating lease liabilities at March 31, 2019 | 940 | |||||||||||||
Public liability and property damage | 186 | 185 | ||||||||||||
Deferred income taxes, net | 0 | 0 | ||||||||||||
Total liabilities | 17,834 | 17,381 | ||||||||||||
Equity: | ||||||||||||||
Total stockholder's equity attributable to Hertz | 920 | |||||||||||||
Noncontrolling interests | 0 | |||||||||||||
Total stockholders' equity | 920 | |||||||||||||
Total liabilities and stockholders' equity | 18,754 | |||||||||||||
Guarantor Subsidiaries | ||||||||||||||
Equity: | ||||||||||||||
Total stockholder's equity attributable to Hertz | 6,847 | |||||||||||||
Noncontrolling interests | 0 | |||||||||||||
Total stockholders' equity | 6,847 | |||||||||||||
Total liabilities and stockholders' equity | 11,104 | |||||||||||||
Guarantor Subsidiaries | Reportable Legal Entities | ||||||||||||||
ASSETS | ||||||||||||||
Cash and cash equivalents | 3 | 3 | ||||||||||||
Restricted cash and cash equivalents: | 11 | 8 | ||||||||||||
Total cash, cash equivalents, restricted cash and restricted cash equivalents | 14 | 11 | 20 | 16 | ||||||||||
Receivables, net of allowance | 167 | 174 | ||||||||||||
Due from affiliates | 4,138 | 5,312 | ||||||||||||
Prepaid expenses and other assets | 28 | 34 | ||||||||||||
Revenue earning vehicles, net | 0 | 1 | ||||||||||||
Property and equipment, net | 62 | 64 | ||||||||||||
Operating lease right-of-use assets | 198 | |||||||||||||
Investment in subsidiaries, net | 1,560 | 1,526 | ||||||||||||
Intangible assets, net | 3,026 | 3,039 | ||||||||||||
Goodwill | 943 | 943 | ||||||||||||
Total assets | 10,136 | 11,104 | ||||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||
Due to affiliates | 990 | 2,306 | ||||||||||||
Total accounts payable | 112 | 97 | ||||||||||||
Accrued liabilities | 50 | 69 | ||||||||||||
Accrued taxes, net | 17 | 15 | ||||||||||||
Debt | 0 | 0 | ||||||||||||
Operating lease liabilities at March 31, 2019 | 199 | |||||||||||||
Public liability and property damage | 41 | 41 | ||||||||||||
Deferred income taxes, net | 1,732 | 1,729 | ||||||||||||
Total liabilities | 3,141 | 4,257 | ||||||||||||
Equity: | ||||||||||||||
Total stockholder's equity attributable to Hertz | 6,995 | |||||||||||||
Noncontrolling interests | 0 | |||||||||||||
Total stockholders' equity | 6,995 | |||||||||||||
Total liabilities and stockholders' equity | 10,136 | |||||||||||||
Non-Guarantor Subsidiaries | ||||||||||||||
Equity: | ||||||||||||||
Total stockholder's equity attributable to Hertz | 2,327 | |||||||||||||
Noncontrolling interests | 59 | |||||||||||||
Total stockholders' equity | 2,386 | |||||||||||||
Total liabilities and stockholders' equity | 23,211 | |||||||||||||
Non-Guarantor Subsidiaries | Reportable Legal Entities | ||||||||||||||
ASSETS | ||||||||||||||
Cash and cash equivalents | 378 | 548 | ||||||||||||
Restricted cash and cash equivalents: | 311 | 138 | ||||||||||||
Total cash, cash equivalents, restricted cash and restricted cash equivalents | 689 | 686 | 1,230 | 577 | ||||||||||
Receivables, net of allowance | 935 | 992 | ||||||||||||
Due from affiliates | 7,505 | 9,101 | ||||||||||||
Prepaid expenses and other assets | 300 | 269 | ||||||||||||
Revenue earning vehicles, net | 13,500 | 11,997 | ||||||||||||
Property and equipment, net | 98 | 124 | ||||||||||||
Operating lease right-of-use assets | 373 | |||||||||||||
Investment in subsidiaries, net | 0 | 0 | ||||||||||||
Intangible assets, net | 4 | 4 | ||||||||||||
Goodwill | 38 | 38 | ||||||||||||
Total assets | 23,442 | 23,211 | ||||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||
Due to affiliates | 3,044 | 4,278 | ||||||||||||
Total accounts payable | 772 | 503 | ||||||||||||
Accrued liabilities | 456 | 412 | ||||||||||||
Accrued taxes, net | 2,389 | 2,359 | ||||||||||||
Debt | 12,682 | 11,757 | ||||||||||||
Operating lease liabilities at March 31, 2019 | 374 | |||||||||||||
Public liability and property damage | 184 | 192 | ||||||||||||
Deferred income taxes, net | 1,324 | 1,324 | ||||||||||||
Total liabilities | 21,225 | 20,825 | ||||||||||||
Equity: | ||||||||||||||
Total stockholder's equity attributable to Hertz | 2,134 | |||||||||||||
Noncontrolling interests | 83 | |||||||||||||
Total stockholders' equity | 2,217 | |||||||||||||
Total liabilities and stockholders' equity | 23,442 | |||||||||||||
The Hertz Corporation | ||||||||||||||
ASSETS | ||||||||||||||
Cash and cash equivalents | 554 | 1,127 | ||||||||||||
Restricted cash and cash equivalents: | 452 | 283 | ||||||||||||
Total cash, cash equivalents, restricted cash and restricted cash equivalents | 1,006 | 1,410 | 1,940 | 1,504 | ||||||||||
Receivables, net of allowance | 1,563 | 1,587 | ||||||||||||
Due from affiliates | 0 | 0 | ||||||||||||
Prepaid expenses and other assets | 1,107 | |||||||||||||
Revenue earning vehicles, net | 13,768 | 12,419 | ||||||||||||
Property and equipment, net | 771 | 778 | ||||||||||||
Operating lease right-of-use assets | 1,514 | |||||||||||||
Investment in subsidiaries, net | 0 | 0 | ||||||||||||
Intangible assets, net | 3,218 | 3,203 | ||||||||||||
Goodwill | 1,083 | 1,083 | ||||||||||||
Total assets | [2] | 24,030 | 21,382 | |||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||
Due to affiliates | 0 | 0 | ||||||||||||
Total accounts payable | 1,279 | 988 | ||||||||||||
Accrued liabilities | 1,330 | |||||||||||||
Accrued taxes, net | 146 | 136 | ||||||||||||
Debt | 17,257 | 16,324 | ||||||||||||
Operating lease liabilities at March 31, 2019 | 1,513 | |||||||||||||
Public liability and property damage | 411 | 418 | ||||||||||||
Deferred income taxes, net | 1,091 | 1,094 | ||||||||||||
Total liabilities | [2] | 23,027 | 20,264 | |||||||||||
Equity: | ||||||||||||||
Total stockholder's equity attributable to Hertz | 920 | 1,059 | ||||||||||||
Noncontrolling interests | 83 | 59 | ||||||||||||
Total stockholders' equity | 1,003 | 1,118 | $ 1,138 | $ 1,520 | ||||||||||
Total liabilities and stockholders' equity | $ 24,030 | $ 21,382 | ||||||||||||
|
Guarantor and Non-Guarantor Condensed Consolidating Financial Information - Hertz (Statement of Operations and Comprehensive Income) (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
Dec. 31, 2018 |
|
Condensed Financial Statements, Captions [Line Items] | |||
Revenues | $ 2,107 | $ 2,063 | |
Expenses: | |||
Direct vehicle and operating | 1,266 | 1,236 | |
Depreciation of revenue earning vehicles and lease charges | 592 | 661 | |
Selling, general and administrative | 234 | 234 | |
Interest (income) expense, net | 183 | 166 | |
Other (income) expense, net | (19) | (3) | |
Total expenses | 2,256 | 2,294 | |
Income (loss) before income taxes and equity in earnings (losses) of subsidiaries | 149 | 231 | |
Income tax (provision) benefit | 1 | 29 | |
Net income (loss) | (148) | (202) | |
Net (income) loss attributable to noncontrolling interests | 1 | 0 | |
Net income (loss) attributable to Hertz Global | (147) | (202) | |
Total other comprehensive income (loss) | 7 | (3) | |
Comprehensive income (loss) attributable to Hertz Global | (140) | (205) | |
Total comprehensive income (loss) | (141) | (205) | |
Eliminations | |||
Condensed Financial Statements, Captions [Line Items] | |||
Revenues | (1,438) | (801) | |
Expenses: | |||
Direct vehicle and operating | 0 | 0 | |
Depreciation of revenue earning vehicles and lease charges | (1,438) | (801) | |
Selling, general and administrative | 0 | 0 | |
Interest (income) expense, net | 0 | 0 | |
Other (income) expense, net | 0 | 0 | |
Total expenses | (1,438) | (801) | |
Income (loss) before income taxes and equity in earnings (losses) of subsidiaries | 0 | 0 | |
Income tax (provision) benefit | 0 | 0 | |
Equity in earnings (losses) of subsidiaries, net of tax | (1,137) | (424) | |
Net income (loss) | (1,137) | (424) | |
Net (income) loss attributable to noncontrolling interests | 0 | ||
Net income (loss) attributable to Hertz Global | (1,137) | ||
Total other comprehensive income (loss) | (9) | 5 | |
Comprehensive income (loss) attributable to Hertz Global | (1,146) | ||
Total comprehensive income (loss) | (419) | ||
Parent (The Hertz Corporation) | Reportable Legal Entities | |||
Condensed Financial Statements, Captions [Line Items] | |||
Revenues | 1,151 | 1,056 | |
Expenses: | |||
Direct vehicle and operating | 812 | 751 | |
Depreciation of revenue earning vehicles and lease charges | 1,394 | 766 | |
Selling, general and administrative | 157 | 161 | |
Interest (income) expense, net | 107 | 102 | |
Other (income) expense, net | (19) | (2) | |
Total expenses | 2,451 | 1,778 | |
Income (loss) before income taxes and equity in earnings (losses) of subsidiaries | 1,300 | 722 | |
Income tax (provision) benefit | 42 | 122 | |
Equity in earnings (losses) of subsidiaries, net of tax | 1,112 | 399 | |
Net income (loss) | (146) | (201) | |
Net (income) loss attributable to noncontrolling interests | 0 | ||
Net income (loss) attributable to Hertz Global | (146) | ||
Total other comprehensive income (loss) | 8 | (3) | |
Comprehensive income (loss) attributable to Hertz Global | (138) | ||
Total comprehensive income (loss) | (204) | ||
Guarantor Subsidiaries | Reportable Legal Entities | |||
Condensed Financial Statements, Captions [Line Items] | |||
Revenues | 320 | 319 | |
Expenses: | |||
Direct vehicle and operating | 157 | 172 | |
Depreciation of revenue earning vehicles and lease charges | 74 | 84 | |
Selling, general and administrative | 16 | 12 | |
Interest (income) expense, net | (46) | (33) | |
Other (income) expense, net | 0 | 0 | |
Total expenses | 201 | 235 | |
Income (loss) before income taxes and equity in earnings (losses) of subsidiaries | (119) | (84) | |
Income tax (provision) benefit | (4) | (14) | |
Equity in earnings (losses) of subsidiaries, net of tax | 25 | 25 | |
Net income (loss) | 140 | 95 | |
Net (income) loss attributable to noncontrolling interests | 0 | ||
Net income (loss) attributable to Hertz Global | 140 | ||
Total other comprehensive income (loss) | 2 | (2) | |
Comprehensive income (loss) attributable to Hertz Global | 142 | ||
Total comprehensive income (loss) | 93 | ||
Non-Guarantor Subsidiaries | Reportable Legal Entities | |||
Condensed Financial Statements, Captions [Line Items] | |||
Revenues | 2,074 | 1,489 | |
Expenses: | |||
Direct vehicle and operating | 297 | 313 | |
Depreciation of revenue earning vehicles and lease charges | 562 | 612 | |
Selling, general and administrative | 61 | 61 | |
Interest (income) expense, net | 120 | 96 | |
Other (income) expense, net | 0 | (1) | |
Total expenses | 1,040 | 1,081 | |
Income (loss) before income taxes and equity in earnings (losses) of subsidiaries | (1,034) | (408) | |
Income tax (provision) benefit | (37) | (79) | |
Equity in earnings (losses) of subsidiaries, net of tax | 0 | 0 | |
Net income (loss) | 997 | 329 | |
Net (income) loss attributable to noncontrolling interests | 1 | ||
Net income (loss) attributable to Hertz Global | 998 | ||
Total other comprehensive income (loss) | 6 | (3) | |
Comprehensive income (loss) attributable to Hertz Global | 1,004 | ||
Total comprehensive income (loss) | 326 | ||
The Hertz Corporation | |||
Condensed Financial Statements, Captions [Line Items] | |||
Revenues | 2,107 | 2,063 | |
Expenses: | |||
Direct vehicle and operating | 1,266 | 1,236 | |
Depreciation of revenue earning vehicles and lease charges | 592 | 661 | |
Selling, general and administrative | 234 | 234 | |
Interest (income) expense, net | 181 | 165 | |
Other (income) expense, net | (19) | (3) | |
Total expenses | 2,254 | 2,293 | |
Income (loss) before income taxes and equity in earnings (losses) of subsidiaries | 147 | 230 | |
Income tax (provision) benefit | 1 | 29 | |
Equity in earnings (losses) of subsidiaries, net of tax | 0 | 0 | |
Net income (loss) | (146) | (201) | $ (201) |
Net (income) loss attributable to noncontrolling interests | 1 | 0 | |
Net income (loss) attributable to Hertz Global | (145) | (201) | |
Total other comprehensive income (loss) | 7 | (3) | $ (3) |
Comprehensive income (loss) attributable to Hertz Global | (138) | (204) | |
Total comprehensive income (loss) | $ (139) | $ (204) |
Guarantor and Non-Guarantor Condensed Consolidating Financial Information - Hertz (Statement of Cash Flows) (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Condensed Financial Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | $ 514 | $ 401 |
Cash flows from investing activities: | ||
Revenue earning vehicles expenditures | (3,973) | (3,565) |
Proceeds from disposal of revenue earning vehicles | 2,153 | 1,782 |
Capital asset expenditures, non-vehicle | (54) | (44) |
Proceeds from property and other equipment disposed of or to be disposed of | 19 | 4 |
Other | 0 | (27) |
Net cash provided by (used in) investing activities | (1,855) | (1,850) |
Cash flows from financing activities: | ||
Payment of financing costs | (12) | (19) |
Contributions from noncontrolling interests | 25 | 5 |
Other | (2) | (3) |
Net cash provided by (used in) financing activities | 939 | 1,877 |
Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents | (2) | 8 |
Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents during the period | (404) | 436 |
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period | 1,410 | 1,504 |
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period | 1,006 | 1,940 |
Vehicles | ||
Cash flows from financing activities: | ||
Proceeds from issuance of debt | 3,667 | 5,181 |
Repayments of debt | (2,736) | (3,283) |
Non-vehicle | ||
Cash flows from financing activities: | ||
Proceeds from issuance of debt | 341 | 127 |
Repayments of debt | (344) | (131) |
Eliminations | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | (993) | (341) |
Cash flows from investing activities: | ||
Revenue earning vehicles expenditures | 0 | 0 |
Proceeds from disposal of revenue earning vehicles | 0 | 0 |
Capital asset expenditures, non-vehicle | 0 | 0 |
Proceeds from property and other equipment disposed of or to be disposed of | 0 | 0 |
Other | 0 | |
Capital contributions to subsidiaries | 376 | 877 |
Return of capital from subsidiaries | (406) | (1,307) |
Proceeds from/repayments of intercompany loan | (434) | (235) |
Net cash provided by (used in) investing activities | (464) | (665) |
Cash flows from financing activities: | ||
Payment of financing costs | 0 | 0 |
Advances to Hertz Global/Old Hertz Holdings | 0 | 0 |
Contributions from noncontrolling interests | 0 | |
Other | 0 | |
Capital contributions received from parent | (376) | (877) |
Payment of dividends and return of capital | 1,399 | 1,648 |
Proceeds from/repayments of intercompany loan | 434 | 235 |
Net cash provided by (used in) financing activities | 1,457 | 1,006 |
Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents | 0 | 0 |
Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents during the period | 0 | 0 |
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period | 0 | 0 |
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period | 0 | 0 |
Eliminations | Vehicles | ||
Cash flows from financing activities: | ||
Proceeds from issuance of debt | 0 | 0 |
Repayments of debt | 0 | 0 |
Eliminations | Non-vehicle | ||
Cash flows from financing activities: | ||
Proceeds from issuance of debt | 0 | 0 |
Repayments of debt | 0 | 0 |
Parent (The Hertz Corporation) | Reportable Legal Entities | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | 83 | (221) |
Cash flows from investing activities: | ||
Revenue earning vehicles expenditures | (102) | (129) |
Proceeds from disposal of revenue earning vehicles | 48 | 48 |
Capital asset expenditures, non-vehicle | (45) | (28) |
Proceeds from property and other equipment disposed of or to be disposed of | 17 | 0 |
Other | (24) | |
Capital contributions to subsidiaries | (376) | (877) |
Return of capital from subsidiaries | 406 | 1,307 |
Proceeds from/repayments of intercompany loan | 0 | 0 |
Net cash provided by (used in) investing activities | (52) | 297 |
Cash flows from financing activities: | ||
Payment of financing costs | 0 | (1) |
Advances to Hertz Global/Old Hertz Holdings | (4) | (4) |
Contributions from noncontrolling interests | 0 | |
Other | 0 | |
Capital contributions received from parent | 0 | 0 |
Payment of dividends and return of capital | 0 | 0 |
Proceeds from/repayments of intercompany loan | (434) | (235) |
Net cash provided by (used in) financing activities | (441) | (297) |
Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents | 0 | 0 |
Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents during the period | (410) | (221) |
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period | 713 | 911 |
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period | 303 | 690 |
Parent (The Hertz Corporation) | Reportable Legal Entities | Vehicles | ||
Cash flows from financing activities: | ||
Proceeds from issuance of debt | 195 | 554 |
Repayments of debt | (195) | (607) |
Parent (The Hertz Corporation) | Reportable Legal Entities | Non-vehicle | ||
Cash flows from financing activities: | ||
Proceeds from issuance of debt | 341 | 127 |
Repayments of debt | (344) | (131) |
Guarantor Subsidiaries | Reportable Legal Entities | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | 5 | 7 |
Cash flows from investing activities: | ||
Revenue earning vehicles expenditures | 0 | 0 |
Proceeds from disposal of revenue earning vehicles | 0 | 0 |
Capital asset expenditures, non-vehicle | (2) | (3) |
Proceeds from property and other equipment disposed of or to be disposed of | 0 | 0 |
Other | 0 | |
Capital contributions to subsidiaries | 0 | 0 |
Return of capital from subsidiaries | 0 | 0 |
Proceeds from/repayments of intercompany loan | 0 | 0 |
Net cash provided by (used in) investing activities | (2) | (3) |
Cash flows from financing activities: | ||
Payment of financing costs | 0 | 0 |
Advances to Hertz Global/Old Hertz Holdings | 0 | 0 |
Contributions from noncontrolling interests | 0 | |
Other | 0 | |
Capital contributions received from parent | 0 | 0 |
Payment of dividends and return of capital | 0 | 0 |
Proceeds from/repayments of intercompany loan | 0 | 0 |
Net cash provided by (used in) financing activities | 0 | 0 |
Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents | 0 | 0 |
Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents during the period | 3 | 4 |
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period | 11 | 16 |
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period | 14 | 20 |
Guarantor Subsidiaries | Reportable Legal Entities | Vehicles | ||
Cash flows from financing activities: | ||
Proceeds from issuance of debt | 0 | 0 |
Repayments of debt | 0 | 0 |
Guarantor Subsidiaries | Reportable Legal Entities | Non-vehicle | ||
Cash flows from financing activities: | ||
Proceeds from issuance of debt | 0 | 0 |
Repayments of debt | 0 | 0 |
Non-Guarantor Subsidiaries | Reportable Legal Entities | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | 1,421 | 957 |
Cash flows from investing activities: | ||
Revenue earning vehicles expenditures | (3,871) | (3,436) |
Proceeds from disposal of revenue earning vehicles | 2,105 | 1,734 |
Capital asset expenditures, non-vehicle | (7) | (13) |
Proceeds from property and other equipment disposed of or to be disposed of | 2 | 4 |
Other | (3) | |
Capital contributions to subsidiaries | 0 | 0 |
Return of capital from subsidiaries | 0 | 0 |
Proceeds from/repayments of intercompany loan | 434 | 235 |
Net cash provided by (used in) investing activities | (1,337) | (1,479) |
Cash flows from financing activities: | ||
Payment of financing costs | (12) | (18) |
Advances to Hertz Global/Old Hertz Holdings | 0 | 0 |
Contributions from noncontrolling interests | 25 | |
Other | 5 | |
Capital contributions received from parent | 376 | 877 |
Payment of dividends and return of capital | (1,399) | (1,648) |
Proceeds from/repayments of intercompany loan | 0 | 0 |
Net cash provided by (used in) financing activities | (79) | 1,167 |
Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents | (2) | 8 |
Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents during the period | 3 | 653 |
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period | 686 | 577 |
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period | 689 | 1,230 |
Non-Guarantor Subsidiaries | Reportable Legal Entities | Vehicles | ||
Cash flows from financing activities: | ||
Proceeds from issuance of debt | 3,472 | 4,627 |
Repayments of debt | (2,541) | (2,676) |
Non-Guarantor Subsidiaries | Reportable Legal Entities | Non-vehicle | ||
Cash flows from financing activities: | ||
Proceeds from issuance of debt | 0 | 0 |
Repayments of debt | 0 | 0 |
The Hertz Corporation | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | 516 | 402 |
Cash flows from investing activities: | ||
Revenue earning vehicles expenditures | (3,973) | (3,565) |
Proceeds from disposal of revenue earning vehicles | 2,153 | 1,782 |
Capital asset expenditures, non-vehicle | (54) | (44) |
Proceeds from property and other equipment disposed of or to be disposed of | 19 | 4 |
Other | 0 | (27) |
Capital contributions to subsidiaries | 0 | 0 |
Return of capital from subsidiaries | 0 | 0 |
Proceeds from/repayments of intercompany loan | 0 | 0 |
Net cash provided by (used in) investing activities | (1,855) | (1,850) |
Cash flows from financing activities: | ||
Payment of financing costs | (12) | (19) |
Advances to Hertz Global/Old Hertz Holdings | (4) | (4) |
Contributions from noncontrolling interests | 25 | 5 |
Other | 0 | 0 |
Capital contributions received from parent | 0 | 0 |
Payment of dividends and return of capital | 0 | 0 |
Proceeds from/repayments of intercompany loan | 0 | 0 |
Net cash provided by (used in) financing activities | 937 | 1,876 |
Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents | (2) | 8 |
Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents during the period | (404) | 436 |
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period | 1,410 | 1,504 |
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period | 1,006 | 1,940 |
The Hertz Corporation | Vehicles | ||
Cash flows from financing activities: | ||
Proceeds from issuance of debt | 3,667 | 5,181 |
Repayments of debt | (2,736) | (3,283) |
The Hertz Corporation | Non-vehicle | ||
Cash flows from financing activities: | ||
Proceeds from issuance of debt | 341 | 127 |
Repayments of debt | $ (344) | $ (131) |
Label | Element | Value |
---|---|---|
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | $ 1,331,000,000 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (189,000,000) |
The Hertz Corporation [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 1,331,000,000 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (189,000,000) |
AOCI Attributable to Parent [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | (118,000,000) |
AOCI Attributable to Parent [Member] | The Hertz Corporation [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | (118,000,000) |
Noncontrolling Interest [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 0 |
Parent [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 1,331,000,000 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (189,000,000) |
Parent [Member] | The Hertz Corporation [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 1,331,000,000 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (189,000,000) |
Treasury Stock [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | $ (100,000,000) |
Shares, Issued | us-gaap_SharesIssued | 2,000,000 |
Additional Paid-in Capital [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | $ 2,243,000,000 |
Additional Paid-in Capital [Member] | The Hertz Corporation [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 3,166,000,000 |
Common Stock [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | $ 1,000,000 |
Shares, Issued | us-gaap_SharesIssued | 84,000,000 |
Common Stock [Member] | The Hertz Corporation [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | $ 0 |
Shares, Issued | us-gaap_SharesIssued | 100,000,000 |
Retained Earnings [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | $ (695,000,000) |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (189,000,000) |
Retained Earnings [Member] | The Hertz Corporation [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | (1,675,000,000) |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (189,000,000) |
Due From Affiliate [Member] | The Hertz Corporation [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | $ (42,000,000) |
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