Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2021 | May 03, 2021 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
Document Transition Report | false | |
Entity Registrant Name | HERTZ GLOBAL HOLDINGS, INC | |
Entity Incorporation, State or Country Code | DE | |
Entity File Number | 001-37665 | |
Entity Tax Identification Number | 61-1770902 | |
Entity Address, Address Description | 8501 Williams Road | |
Entity Address, City or Town | Estero, | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 33928 | |
City Area Code | 239 | |
Local Phone Number | 301-7000 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | HTZGQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 156,206,478 | |
Entity Central Index Key | 0001657853 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
The Hertz Corporation | ||
Entity Information [Line Items] | ||
Entity Registrant Name | HERTZ CORP | |
Entity Incorporation, State or Country Code | DE | |
Entity File Number | 001-07541 | |
Entity Tax Identification Number | 13-1938568 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 100 | |
Entity Central Index Key | 0000047129 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 | |
ASSETS | |||
Cash and cash equivalents | $ 1,087 | $ 1,096 | |
Restricted cash and cash equivalents: | 1,353 | 411 | |
Total cash, cash equivalents, restricted cash and restricted cash equivalents | 2,440 | 1,507 | |
Receivables: | 793 | 777 | |
Prepaid expenses and other assets | 786 | 373 | |
Revenue earning vehicles: | |||
Revenue earning vehicles, net | 7,919 | 7,540 | |
Less: accumulated depreciation | (1,559) | (1,478) | |
Total revenue earning vehicles, net | 6,360 | 6,062 | |
Property and equipment, net | 637 | 666 | |
Operating lease right-of-use assets | 1,580 | 1,675 | |
Intangible assets, net | 2,969 | 2,992 | |
Goodwill | 1,045 | 1,045 | |
Assets held for sale | 0 | 1,811 | |
Total assets | [1] | 16,610 | 16,908 |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Accounts payable: | 531 | 418 | |
Accrued liabilities | 824 | 759 | |
Accrued taxes, net | 161 | 121 | |
Debt: | 7,026 | 6,267 | |
Operating lease liabilities | 1,541 | 1,636 | |
Self-insured liabilities | 470 | 488 | |
Deferred income taxes, net | 789 | 730 | |
Total liabilities not subject to compromise | 11,342 | 10,419 | |
Liabilities subject to compromise | 4,978 | 4,965 | |
Liabilities held for sale | 0 | 1,431 | |
Total liabilities | [1] | 16,320 | 16,815 |
Commitments and contingencies | |||
Stockholders' equity: | |||
Preferred stock, $0.01 par value, no shares issued and outstanding | 0 | 0 | |
Common stock, $0.01 par value, 158,235,410 shares issued and 156,206,478 shares outstanding at March 31, 2021 and December 31, 2020 | 2 | 2 | |
Additional paid-in capital | 3,049 | 3,047 | |
Accumulated deficit | (2,491) | (2,681) | |
Accumulated other comprehensive income (loss) | (195) | (212) | |
Treasury stock, at cost, 2,028,932 shares at March 31, 2021 and December 31, 2020 | (100) | (100) | |
Stockholders' equity attributable to Hertz Global | 265 | 56 | |
Noncontrolling interests | 25 | 37 | |
Total stockholders' equity | 290 | 93 | |
Total liabilities and stockholders' equity | $ 16,610 | $ 16,908 | |
Treasury Stock, shares repurchased | 2,028,932 | 2,028,932 | |
Vehicles | |||
ASSETS | |||
Restricted cash and cash equivalents: | $ 119 | $ 50 | |
Receivables: | 157 | 164 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Accounts payable: | 141 | 29 | |
Debt: | 6,286 | 6,024 | |
Non-vehicle | |||
ASSETS | |||
Restricted cash and cash equivalents: | 1,234 | 361 | |
Receivables: | 636 | 613 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Accounts payable: | 390 | 389 | |
Debt: | 740 | 243 | |
The Hertz Corporation | |||
ASSETS | |||
Cash and cash equivalents | 1,087 | 1,096 | |
Restricted cash and cash equivalents: | 1,325 | 383 | |
Total cash, cash equivalents, restricted cash and restricted cash equivalents | 2,412 | 1,479 | |
Receivables: | 793 | 777 | |
Due from Hertz Holdings | 1 | 1 | |
Prepaid expenses and other assets | 785 | 372 | |
Revenue earning vehicles: | |||
Revenue earning vehicles, net | 7,919 | 7,540 | |
Less: accumulated depreciation | (1,559) | (1,478) | |
Total revenue earning vehicles, net | 6,360 | 6,062 | |
Property and equipment, net | 637 | 666 | |
Operating lease right-of-use assets | 1,580 | 1,675 | |
Intangible assets, net | 2,969 | 2,992 | |
Goodwill | 1,045 | 1,045 | |
Assets held for sale | 0 | 1,811 | |
Total assets | [2] | 16,582 | 16,880 |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Accounts payable: | 531 | 418 | |
Accrued liabilities | 825 | 759 | |
Accrued taxes, net | 161 | 121 | |
Debt: | 7,026 | 6,267 | |
Operating lease liabilities | 1,541 | 1,636 | |
Self-insured liabilities | 470 | 488 | |
Deferred income taxes, net | 793 | 735 | |
Total liabilities not subject to compromise | 11,347 | 10,424 | |
Liabilities subject to compromise | 5,043 | 5,030 | |
Liabilities held for sale | 0 | 1,431 | |
Total liabilities | [2] | 16,390 | 16,885 |
Commitments and contingencies | |||
Stockholders' equity: | |||
Common stock, $0.01 par value, 158,235,410 shares issued and 156,206,478 shares outstanding at March 31, 2021 and December 31, 2020 | 0 | 0 | |
Additional paid-in capital | 3,955 | 3,953 | |
Accumulated deficit | (3,593) | (3,783) | |
Accumulated other comprehensive income (loss) | (195) | (212) | |
Stockholders' equity attributable to Hertz Global | 167 | (42) | |
Noncontrolling interests | 25 | 37 | |
Total stockholders' equity | 192 | (5) | |
Total liabilities and stockholders' equity | 16,582 | 16,880 | |
The Hertz Corporation | Variable Interest Entity, Primary Beneficiary | |||
Revenue earning vehicles: | |||
Total assets | 513 | 511 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Total liabilities | 393 | 475 | |
The Hertz Corporation | Vehicles | |||
ASSETS | |||
Restricted cash and cash equivalents: | 119 | 50 | |
Receivables: | 157 | 164 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Accounts payable: | 141 | 29 | |
Debt: | 6,286 | 6,024 | |
The Hertz Corporation | Non-vehicle | |||
ASSETS | |||
Restricted cash and cash equivalents: | 1,206 | 333 | |
Receivables: | 636 | 613 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Accounts payable: | 390 | 389 | |
Debt: | $ 740 | $ 243 | |
[1] | Hertz Global Holdings, Inc.'s consolidated total assets as of March 31, 2021 and December 31, 2020 include total assets of variable interest entities (“VIEs”) of $513 million and $511 million, respectively, which can only be used to settle obligations of the VIEs. Hertz Global Holdings, Inc.'s consolidated total liabilities as of March 31, 2021 and December 31, 2020 include total liabilities of VIEs of $393 million and $475 million, respectively, for which the creditors of the VIEs have no recourse to Hertz Global Holdings, Inc. See "Special Purpose Entities" in Note 6, "Debt," and "767 Auto Leasing LLC" in Note 13, "Related Party Transactions," for further information. | ||
[2] | The Hertz Corporation's consolidated total assets as of March 31, 2021 and December 31, 2020 include total assets of VIEs of $513 million and $511 million, respectively, which can only be used to settle obligations of the VIEs. The Hertz Corporation's consolidated total liabilities as of March 31, 2021 and December 31, 2020 include total liabilities of VIEs of $393 million and $475 million, respectively, for which the creditors of the VIEs have no recourse to The Hertz Corporation. See "Special Purpose Entities" in Note 6, "Debt," and "767 Auto Leasing LLC" in Note 13, "Related Party Transactions," for further information. |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
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 | 158,235,410 | 158,235,410 |
Common Stock, shares outstanding | 156,206,478 | 156,206,478 |
Treasury Stock, shares repurchased | 2,028,932 | 2,028,932 |
Non-vehicle | ||
Receivables, allowance for doubtful accounts (in dollars) | $ 56 | $ 46 |
The Hertz Corporation | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common Stock, shares issued | 100 | 100 |
Common Stock, shares outstanding | 100 | 100 |
The Hertz Corporation | Non-vehicle | ||
Receivables, allowance for doubtful accounts (in dollars) | $ 56 | $ 46 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenues: | ||
Worldwide vehicle rental | $ 1,153 | $ 1,749 |
All other operations | 136 | 174 |
Total revenues | 1,289 | 1,923 |
Expenses: | ||
Direct vehicle and operating | 827 | 1,241 |
Depreciation of revenue earning vehicles and lease charges | 243 | 677 |
Selling, general and administrative | 156 | 208 |
Total interest expense, net | 148 | 175 |
Other (income) expense, net | (3) | (17) |
Reorganization items, net | 42 | 0 |
(Gain) from the sale of a business | (392) | 0 |
Total expenses | 1,021 | 2,284 |
Income (loss) before income taxes | 268 | (361) |
Income tax (provision) benefit | (79) | 4 |
Net income (loss) | 189 | (357) |
Net (income) loss attributable to noncontrolling interests | 1 | 1 |
Net income (loss) attributable to Hertz | $ 190 | $ (356) |
Weighted-average shares outstanding: | ||
Basic (in shares) | 156 | 142 |
Diluted (in shares) | 157 | 142 |
Earnings (loss) per share: | ||
Basic earnings (loss) per share (in dollars per share) | $ 1.22 | $ (2.50) |
Diluted earnings (loss) per share (in dollars per share) | $ 1.21 | $ (2.50) |
Vehicles | ||
Expenses: | ||
Total interest expense, net | $ 104 | $ 118 |
Non-vehicle | ||
Expenses: | ||
Total interest expense, net | 44 | 57 |
The Hertz Corporation | ||
Revenues: | ||
Worldwide vehicle rental | 1,153 | 1,749 |
All other operations | 136 | 174 |
Total revenues | 1,289 | 1,923 |
Expenses: | ||
Direct vehicle and operating | 827 | 1,241 |
Depreciation of revenue earning vehicles and lease charges | 243 | 677 |
Selling, general and administrative | 156 | 208 |
Total interest expense, net | 148 | 173 |
Other (income) expense, net | (3) | (17) |
Reorganization items, net | 42 | 0 |
(Gain) from the sale of a business | (392) | 0 |
Total expenses | 1,021 | 2,282 |
Income (loss) before income taxes | 268 | (359) |
Income tax (provision) benefit | (79) | 3 |
Net income (loss) | 189 | (356) |
Net (income) loss attributable to noncontrolling interests | 1 | 1 |
Net income (loss) attributable to Hertz | 190 | (355) |
The Hertz Corporation | Vehicles | ||
Expenses: | ||
Total interest expense, net | 104 | 118 |
The Hertz Corporation | Non-vehicle | ||
Expenses: | ||
Total interest expense, net | $ 44 | $ 55 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Net income (loss) | $ 189 | $ (357) |
Other comprehensive income (loss): | ||
Foreign currency translation adjustments | 17 | (41) |
Net gain (loss) on pension and postretirement benefit plans | 0 | 1 |
Reclassification from other comprehensive income (loss) to other (income) expense for amortization of actuarial net losses | 0 | 1 |
Total other comprehensive income (loss) before income taxes | 17 | (39) |
Other comprehensive income (loss) | 17 | (39) |
Total comprehensive income (loss) | 206 | (396) |
Comprehensive (income) loss attributable to noncontrolling interests | 1 | 1 |
Comprehensive income (loss) attributable to Hertz Global | 207 | (395) |
The Hertz Corporation | ||
Net income (loss) | 189 | (356) |
Other comprehensive income (loss): | ||
Foreign currency translation adjustments | 17 | (41) |
Net gain (loss) on pension and postretirement benefit plans | 0 | 1 |
Reclassification from other comprehensive income (loss) to other (income) expense for amortization of actuarial net losses | 0 | 1 |
Total other comprehensive income (loss) before income taxes | 17 | (39) |
Other comprehensive income (loss) | 17 | (39) |
Total comprehensive income (loss) | 206 | (395) |
Comprehensive (income) loss attributable to noncontrolling interests | 1 | 1 |
Comprehensive income (loss) attributable to Hertz Global | $ 207 | $ (394) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDER'S EQUITY (DEFICIT) - USD ($) shares in Millions, $ in Millions | Total | The Hertz Corporation | Stockholders' Equity Attributable to Hertz Global | Stockholders' Equity Attributable to Hertz GlobalThe Hertz Corporation | Preferred Stock Shares | Common Stock Shares | Common Stock SharesThe Hertz Corporation | Additional Paid-In Capital | Additional Paid-In CapitalThe Hertz Corporation | Due From AffiliateThe Hertz Corporation | Accumulated Deficit | Accumulated DeficitThe Hertz Corporation | Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss)The Hertz Corporation | Treasury Stock | Non- controlling Interests | Non- controlling InterestsThe Hertz Corporation |
Beginning Balance (Shares) at Dec. 31, 2019 | 0 | 142 | 100 | 2 | |||||||||||||
Beginning Balance at Dec. 31, 2019 | $ 1,888 | $ 1,884 | $ 1,769 | $ 1,765 | $ 1 | $ 0 | $ 3,024 | $ 3,955 | $ (64) | $ (967) | $ (1,937) | $ (189) | $ (189) | $ (100) | $ 119 | $ 119 | |
Increase (Decrease) in Stockholders' Equity | |||||||||||||||||
Net income (loss) | (357) | (356) | (356) | (355) | (356) | (355) | (1) | (1) | |||||||||
Due from Hertz Holdings | (3) | (3) | (3) | ||||||||||||||
Other comprehensive income (loss) | (39) | (39) | (39) | (39) | (39) | (39) | |||||||||||
Net settlement on vesting of restricted stock | (2) | (2) | (2) | ||||||||||||||
Contributions from noncontrolling interests | 1 | 1 | 1 | 1 | |||||||||||||
Ending Balance (Shares) at Mar. 31, 2020 | 0 | 142 | 100 | 2 | |||||||||||||
Ending Balance at Mar. 31, 2020 | 1,491 | 1,487 | 1,372 | 1,368 | $ 1 | $ 0 | 3,022 | 3,955 | $ (67) | (1,323) | (2,292) | (228) | (228) | $ (100) | 119 | 119 | |
Beginning Balance (Shares) at Dec. 31, 2020 | 0 | 156 | 100 | 2 | |||||||||||||
Beginning Balance at Dec. 31, 2020 | 93 | (5) | 56 | (42) | $ 2 | $ 0 | 3,047 | 3,953 | (2,681) | (3,783) | (212) | (212) | $ (100) | 37 | 37 | ||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||||
Net income (loss) | 189 | 189 | 190 | 190 | 190 | 190 | (1) | (1) | |||||||||
Other comprehensive income (loss) | 17 | 17 | 17 | 17 | 17 | 17 | |||||||||||
Stock-based compensation charges | 2 | 2 | 2 | 2 | 2 | 2 | |||||||||||
Distributions to noncontrolling interests | (11) | (11) | |||||||||||||||
Ending Balance (Shares) at Mar. 31, 2021 | 0 | 156 | 100 | 2 | |||||||||||||
Ending Balance at Mar. 31, 2021 | $ 290 | $ 192 | $ 265 | $ 167 | $ 2 | $ 0 | $ 3,049 | $ 3,955 | $ (2,491) | $ (3,593) | $ (195) | $ (195) | $ (100) | $ 25 | $ 25 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 189 | $ (357) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation and reserves for revenue earning vehicles | 275 | 733 |
Depreciation and amortization, non-vehicle | 54 | 53 |
Amortization of deferred financing costs and debt discount (premium) | 34 | 12 |
Provision for receivables allowance | 29 | 15 |
Deferred income taxes, net | 62 | (13) |
Non-cash reorganization items, net | (15) | 0 |
(Gain) from the sale of a business | (392) | 0 |
(Gain) loss on sale of non-vehicle capital assets | (1) | (21) |
Other | 2 | 4 |
Changes in assets and liabilities: | ||
Non-vehicle receivables | (73) | 226 |
Prepaid expenses and other assets | (87) | (61) |
Operating lease right-of-use assets | 78 | 100 |
Non-vehicle accounts payable | 40 | (86) |
Accrued liabilities | 62 | (59) |
Accrued taxes, net | 36 | (14) |
Operating lease liabilities | (78) | (66) |
Self-insured liabilities | (15) | (17) |
Net cash provided by (used in) operating activities | 200 | 449 |
Cash flows from investing activities: | ||
Revenue earning vehicles expenditures | (1,517) | (4,346) |
Proceeds from disposal of revenue earning vehicles | 686 | 2,212 |
Non-vehicle capital asset expenditures | (9) | (59) |
Proceeds from non-vehicle capital assets disposed of or to be disposed of | 4 | 23 |
Sales of marketable securities | 0 | 74 |
Proceeds from the sale of a business, net of cash sold | 818 | 0 |
Other | 0 | (1) |
Net cash provided by (used in) investing activities | (18) | (2,097) |
Cash flows from financing activities: | ||
Payment of financing costs | (7) | (9) |
Contributions from (distributions to) noncontrolling interests | (10) | 0 |
Other | 0 | (2) |
Net cash provided by (used in) financing activities | 692 | 1,701 |
Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents | (12) | (4) |
Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents during the period | 862 | 49 |
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period | 2,440 | 1,409 |
Cash paid during the period for: | ||
Income taxes, net of refunds | (4) | 5 |
Supplemental disclosures of non-cash information: | ||
Purchases of revenue earning vehicles included in accounts payable, net of incentives | 103 | 200 |
Sales of revenue earning vehicles included in vehicle receivables | 119 | 1,043 |
Purchases of non-vehicle capital assets included in accounts payable | 6 | 32 |
Purchases of non-vehicle capital assets included in liabilities subject to compromise | 16 | 0 |
Revenue earning vehicles and non-vehicle capital assets acquired through capital lease | 21 | 4 |
Vehicles | ||
Cash flows from financing activities: | ||
Proceeds from issuance of debt | 1,096 | 3,661 |
Repayments of debt | (946) | (2,538) |
Cash paid during the period for: | ||
Interest, net of amounts capitalized: | 69 | 103 |
Non-vehicle | ||
Cash flows from financing activities: | ||
Proceeds from issuance of debt | 560 | 1,440 |
Repayments of debt | (1) | (851) |
Cash paid during the period for: | ||
Interest, net of amounts capitalized: | 30 | 26 |
The Hertz Corporation | ||
Cash flows from operating activities: | ||
Net income (loss) | 189 | (356) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation and reserves for revenue earning vehicles | 275 | 733 |
Depreciation and amortization, non-vehicle | 54 | 53 |
Amortization of deferred financing costs and debt discount (premium) | 34 | 12 |
Provision for receivables allowance | 29 | 15 |
Deferred income taxes, net | 62 | (12) |
Non-cash reorganization items, net | (15) | 0 |
(Gain) from the sale of a business | (392) | 0 |
Other | 2 | 3 |
Changes in assets and liabilities: | ||
Non-vehicle receivables | (73) | 226 |
Prepaid expenses and other assets | (87) | (61) |
Operating lease right-of-use assets | 78 | 100 |
Non-vehicle accounts payable | 40 | (86) |
Accrued liabilities | 62 | (59) |
Accrued taxes, net | 36 | (14) |
Operating lease liabilities | (78) | (66) |
Self-insured liabilities | (15) | (17) |
Net cash provided by (used in) operating activities | 200 | 450 |
Cash flows from investing activities: | ||
Revenue earning vehicles expenditures | (1,517) | (4,346) |
Proceeds from disposal of revenue earning vehicles | 686 | 2,212 |
Non-vehicle capital asset expenditures | (9) | (59) |
Proceeds from non-vehicle capital assets disposed of or to be disposed of | 4 | 23 |
Sales of marketable securities | 0 | 74 |
Proceeds from the sale of a business, net of cash sold | 818 | 0 |
Other | 0 | (1) |
Net cash provided by (used in) investing activities | (18) | (2,097) |
Cash flows from financing activities: | ||
Payment of financing costs | (7) | (9) |
Advances to Hertz Holdings | 0 | (3) |
Contributions from (distributions to) noncontrolling interests | (10) | 0 |
Net cash provided by (used in) financing activities | 692 | 1,700 |
Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents | (12) | (4) |
Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents during the period | 862 | 49 |
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period | 2,412 | 1,409 |
Cash paid during the period for: | ||
Income taxes, net of refunds | (4) | 5 |
Supplemental disclosures of non-cash information: | ||
Purchases of revenue earning vehicles included in accounts payable, net of incentives | 103 | 200 |
Purchases of non-vehicle capital assets included in accounts payable | 6 | 32 |
Purchases of non-vehicle capital assets included in liabilities subject to compromise | 16 | 0 |
Revenue earning vehicles and non-vehicle capital assets acquired through capital lease | 21 | 4 |
The Hertz Corporation | Vehicles | ||
Cash flows from financing activities: | ||
Proceeds from issuance of debt | 1,096 | 3,661 |
Repayments of debt | (946) | (2,538) |
Cash paid during the period for: | ||
Interest, net of amounts capitalized: | 69 | 103 |
Supplemental disclosures of non-cash information: | ||
Sales of revenue earning vehicles included in vehicle receivables | 119 | 1,043 |
The Hertz Corporation | Non-vehicle | ||
Cash flows from financing activities: | ||
Proceeds from issuance of debt | 560 | 1,440 |
Repayments of debt | (1) | (851) |
Cash paid during the period for: | ||
Interest, net of amounts capitalized: | $ 30 | $ 26 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - Non-vehicle $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Contractual interest | $ 53 |
The Hertz Corporation | |
Contractual interest | $ 53 |
Background
Background | 3 Months Ended |
Mar. 31, 2021 | |
Background Disclosure [Abstract] | |
Background | Background Hertz Global Holdings, Inc. ("Hertz Global" when including its subsidiaries and VIEs and "Hertz Holdings" when 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. The Company also sells vehicles through Hertz Car Sales and operates the Firefly vehicle rental brand and Hertz 24/7 car sharing business in international markets. As disclosed in Note 3, "Divestitures," on March 30, 2021 the Company completed the previously announced sale of substantially all of the assets and certain liabilities of its Donlen subsidiary (the "Donlen Sale"), a business which provides vehicle leasing and fleet management services. Voluntary Petitions for Bankruptcy In March 2020, the World Health Organization declared COVID-19 a global pandemic. In response to COVID-19, local and national governments around the world instituted shelter-in-place and similar orders and travel restrictions, and airline and other travel decreased suddenly and dramatically. As a result of the impact on travel demand, late in the first quarter of 2020, the Company experienced a high level of rental cancellations and a significant decline in forward bookings. In response, the Company began aggressive actions to eliminate costs. However, it faced significant ongoing expenses. On May 22, 2020 (the "Petition Date"), Hertz Global, Hertz and certain of their direct and indirect subsidiaries in the U.S. and Canada (collectively the "Debtors" and the "Debtors-in-Possession") filed voluntary petitions for relief (collectively, the "Petitions") under chapter 11 of title 11 ("Chapter 11") of the U.S. Bankruptcy Code (the "Bankruptcy Code") in the U.S. Bankruptcy Court for the District of Delaware (the "Bankruptcy Court"). The Chapter 11 cases (the "Chapter 11 Cases") are being jointly administered for procedural purposes only under the caption In re The Hertz Corporation, et al., Case No. 20-11218 (MFW) . The Debtors filed with the Bankruptcy Court a proposed Joint Chapter 11 Plan of Reorganization of the Debtors, dated as of March 1, 2021, and a related proposed Disclosure Statement. The Debtors subsequently filed with the Bankruptcy Court a proposed First Amended Joint Chapter 11 Plan of Reorganization of the Debtors and a related proposed Disclosure Statement, in each case dated as of March 29, 2021; a proposed Second Amended Joint Chapter 11 Plan of Reorganization of the Debtors and a related proposed Disclosure Statement, in each case dated as of April 3, 2021; a proposed Modified Second Amended Joint Chapter 11 Plan of Reorganization of the Debtors and a related proposed Disclosure Statement, in each case dated as of April 10, 2021; a proposed Second Modified Second Amended Joint Chapter 11 Plan of Reorganization of the Debtors and a related proposed Disclosure Statement, dated as of April 14, 2021 and April 15, 2021, respectively; a proposed Third Modified Second Amended Joint Chapter 11 Plan of Reorganization of the Debtors and a related proposed Disclosure Statement, in each case dated as of April 16, 2021; and a proposed Fourth Modified Second Amended Joint Chapter 11 Plan of Reorganization of the Debtors and a related proposed Disclosure Statement, in each case dated as of April 21, 2021, which Disclosure Statement the Debtors further updated on April 21, 2021. On April 22, 2021, the Debtors filed the solicitation version of the Fourth Modified Second Amended Joint Chapter 11 Plan of Reorganization of the Debtors (the "Proposed Plan"), and the solicitation version of the Disclosure Statement (the "Disclosure Statement"). The Disclosure Statement describes, among other things, the events leading to the Chapter 11 Cases; the Debtors contemplated financial restructuring (the “Restructuring”); the proposed plan of reorganization; certain events that have occurred or are anticipated to occur during the Chapter 11 Cases, including the solicitation of votes to approve the Proposed Plan from certain of the Debtors’ stakeholders; certain risk factors related to the Plan, certain tax considerations, and certain other aspects of the Restructuring. The Disclosure Statement and solicitation procedures with respect to the Proposed Plan was approved by the Bankruptcy Court at a hearing held on April 21, 2021 and an order to that effect was entered on April 22, 2021. The Proposed Plan is now subject to a vote by the Debtors' stakeholders and a subsequent confirmation hearing of the Bankruptcy Court, currently scheduled for June 10, 2021. In addition to approval by the Bankruptcy Court, consummation of the Proposed Plan remains subject to the satisfaction of other conditions. Under the Proposed Plan, Centerbridge Partners, L.P., Warburg Pincus LLC, and Dundon Capital Partners, LLC (collectively, the "PE Sponsors") and certain holders of over 85% of the Debtors' unsecured notes (the "Supporting Noteholders," and together with the PE Sponsors the "Plan Sponsors") have committed to provide equity capital to fund the Debtors' exit from Chapter 11 as reflected in definitive executed documents, including (1) an Equity Purchase and Commitment Agreement (the "EPCA"), (2) a Plan Support Agreement and (3) a Bridge Financing Commitment for Hertz International Ltd. (collectively, along with the Proposed Plan and the Disclosure Statement, the "Transaction Documents"). Under the Proposed Plan, the Debtors anticipate exiting from Chapter 11 with approximately $2.2 billion of global liquidity (inclusive of capacity under the anticipated exit revolving credit facility) and only $1.3 billion in non-vehicle debt (exclusive of ABS facilities and a revolving credit facility). The Proposed Plan is supported by the Supporting Noteholders, which comprise the vast majority of creditors in the largest class of claims that are voting on the Proposed Plan and the Official Committee of Unsecured Creditors appointed in the Chapter 11 Cases. As set forth in the Transaction Documents: • the Proposed Plan will raise approximately $3.9 billion in cash proceeds, comprised of: ◦ $565 million from the purchase of common stock in the reorganized entity by the Plan Sponsors; ◦ $1.6 billion from the purchase of common stock pursuant to the rights offering contemplated by the Proposed Plan, which the Plan Sponsors have committed to ensure is fully funded pursuant to the terms of the EPCA; ◦ $385 million from the purchase of preferred stock by plan sponsors Centerbridge Partners, L.P. and Warburg Pincus LLC; and ◦ $1.3 billion in proceeds from the Company's anticipated new exit term loan facility. • Such cash proceeds will be used, in part, to provide the following distributions to the Company's stakeholders pursuant to the terms of the Proposed Plan: ◦ administrative priority and secured claims will be paid in cash in full; ◦ the holders of the Company's €725 million European Vehicle Notes will be paid in cash in full; ◦ the holders of claims with respect to the unsecured Senior Notes and holders of claims with respect to the Alternative Letter of Credit Facility will receive approximately 48.2% of the equity in the reorganized entity and the right to purchase an additional $1.6 billion of equity in the reorganized entity; ◦ the holders of general unsecured claims will receive cash payments of not more than $550 million in the aggregate, which the Company estimates will provide a recovery of approximately 100 percent; and ◦ the Company's existing equity will be cancelled and existing equity holders will receive new six-year warrants to purchase, in the aggregate 4%, of the reorganized entity's common stock, subject to certain conditions, with an exercise price to be determined based on an equity value of the reorganized entity of $6.1 billion. In light of continuing interest from an alternative potential plan sponsorship group, consisting of Certares Opportunities LLC (“Certares”), Knighthead Capital Management, LLC (“Knighthead”), Apollo Capital Management, LP (“Apollo”), and certain of each of their affiliates (together with Certares, Knighthead, and Apollo the “Alternative Sponsor Group”), on April 28, 2021, the Bankruptcy Court entered an order (the “Bid Procedures Order”), among other things, establishing bidding and auction procedures relating to the submission of alternative plan proposals. On May 2, 2021, the Alternative Sponsor Group submitted an alternative plan proposal to the Debtors (the “Alternative Plan Proposal”). On May 4, 2021, the Company determined that the Alternative Plan Proposal constitutes a “Superior Proposal” as that term is defined under the Debtors’ EPCA with the Plan Sponsors dated as of April 3, 2021 and approved by the Bankruptcy Court on April 22, 2021. Pursuant to the Bid Procedures Order, the Plan Sponsors will have until 5:00 p.m., Eastern Time, on May 7, 2021 to indicate if they intend to counter the Alternative Plan Proposal. If the Plan Sponsors determine to counter the Alternative Plan Proposal, an auction (the “Auction”) will be conducted on May 10, 2021. A hearing before the Bankruptcy Court to approve the results of the Auction along with supplemental solicitation materials, if any, will be conducted on May 14, 2021. This Quarterly Report on Form 10-Q is not a solicitation of votes to accept or reject the Proposed Plan. Information contained in the Proposed Plan and the Disclosure Statement is subject to change, whether as a result of additional amendments or supplements to the Proposed Plan or Disclosure Statement or otherwise. The documents and other information available via website or elsewhere are not part of this Quarterly Report on Form 10-Q and shall not be deemed incorporated herein. Debtors-In-Possession The Debtors are currently operating as debtors-in-possession under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and orders of the Bankruptcy Court. In general, as debtors-in-possession under the Bankruptcy Code, the Debtors are authorized to continue to operate as an ongoing business but may not engage in transactions outside the ordinary course of business without the prior approval of the Bankruptcy Court. Automatic Stay Subject to certain specific exceptions under the Bankruptcy Code, the Petitions automatically stayed most judicial or administrative actions against the Debtors and efforts by creditors to collect on or otherwise exercise rights or remedies with respect to obligations of the Debtors incurred prior to the Petition Date ("Pre-petition"). Substantially all of the Debtors’ Pre-petition liabilities are subject to resolution as provided in the Bankruptcy Code. Potential Claims The Debtors have filed with the Bankruptcy Court schedules and statements setting forth, among other things, the assets and liabilities of each of the Debtors, subject to the assumptions filed in connection therewith. These schedules and statements may be subject to further amendment or modification after filing. As part of the Chapter 11 Cases, parties believing that they have claims or causes of action against the Debtors may file proofs of claim evidencing such claims. Certain holders of Pre-petition claims that are not governmental units were required to file proofs of claim by the deadline for general claims, which was on October 21, 2020 (the “Bar Date”). The Debtors' have received approximately 15,000 proofs of claim for an amount of approximately $104.9 billion. Such amount includes duplicate claims across multiple debtor legal entities. These claims are in the process of being reconciled to amounts recorded in the Company's accounting records. Differences in amounts recorded and claims filed by creditors will be investigated and resolved, including through the filing of objections with the Bankruptcy Court, where appropriate. The Company may ask the Bankruptcy Court to disallow claims that the Company believes are duplicative, have been later amended or superseded, are without merit, are overstated or should be disallowed for other reasons. As a result of this process, the Company may identify additional liabilities that will need to be recorded or reclassified to liabilities subject to compromise. As of the filing of this Quarterly Report on Form 10-Q, the Company’s assessment of the validity of claims received has not been completed, but the Company does not anticipate that the amount of such claims will exceed the $550 million in cash, plus the net proceeds of certain claims of the Company, currently contemplated under the Proposed Plan. In light of the substantial number of claims filed, and expected to be filed, the claims resolution process may take considerable time to complete and likely will continue after the Debtors emerge from bankruptcy. For additional information on the anticipated claims settlement process, please refer to the Disclosure Statement. Borrowing Capacity and Availability The filing of the Chapter 11 Cases constituted defaults, termination events and/or amortization events with respect to certain of the Company's existing debt obligations. As a result of the filing of the Chapter 11 Cases, the remaining capacity under almost all of the Company's revolving credit facilities was terminated, as disclosed in Note 6, "Debt." Consequently, the proceeds of sales of vehicles which serve as collateral for such vehicle finance facilities must be applied to the payment of the related indebtedness of the Non-Debtor Financing Subsidiaries (as defined in Note 6, "Debt") and are not otherwise available to fund the Company’s operations. Additionally, the Company is precluded from accessing any of its subordinated investment in the vehicle collateral until the related defaults are waived or the third party funding under those facilities has been retired, either through the monetization of the underlying collateral or the refinancing of the related indebtedness. Additionally, proceeds from vehicle receivables, excluding manufacturer rebates, as of March 31, 2021 and ongoing vehicle sales must be applied to vehicle debt in amortization. The Company had waivers related to the filing of the Chapter 11 Cases under its European ABS and U.K. Financing Facility which, in April 2021, have been superseded by a comprehensive restructuring of each the European ABS and U.K. Financing Facility, as disclosed in Note 6, "Debt." The Company's inability to retain any proceeds from the sale of vehicles under its U.S. ABS programs means that its sources of liquidity are primarily its unrestricted cash and unrestricted cash equivalents on hand, cash generated from its operations and up to $800 million from its debtor-in-possession financing facility (the "DIP Credit Agreement"). As of March 31, 2021, the Company had total liquidity of $1.7 billion comprised of $900 million of remaining, committed availability under the DIP Credit Agreement and $812 million of unrestricted cash and unrestricted cash equivalents, net of the $275 million minimum liquidity requirement under the DIP Credit Agreement, which the Company believes will be sufficient to fund its operations through approximately March 31, 2022, assuming it does not experience any unforeseen liquidity needs before then, which could result in the utilization of the liquidity in advance of March 31, 2022. On January 13, 2021, the Bankruptcy Court entered an order authorizing the Debtors to enter into a Canadian fleet financing facility up to CAD$400 million. On January 27, 2021, TCL Funding Limited Partnership, a bankruptcy remote, indirect, wholly-owned, special purpose subsidiary of Hertz, entered into the Funding LP Series 2021-A which provides for aggregate maximum borrowings of CAD$350 million on a revolving basis. Subject to initial availability, the initial draw of CAD$120 million was used to pay the outstanding obligations under the Funding LP Series 2015-A Notes, including any unpaid default interest. On January 20, 2021, the Bankruptcy Court authorized an extension (the "Second Lease Order") of the July 24, 2020 order related to the Company's Amended and Restated Master Motor Vehicle Operating and Servicing Agreement (Series 2013 G1) (the "Operating Lease"), which extends the forbearance period related to Operating Lease to September 30, 2021, provided that the Debtors dispose of 121,510 lease vehicles, at least 113,381 of which will be non-program vehicles, and reach a minimum cumulative vehicle disposition proceeds of $2.0 billion by September 30, 2021. Additionally, the Second Lease Order directed the Debtors to (i) have no more than 157,262 lease vehicles by September 30, 2021 and (ii) make $756 million of base rent payments under the Operating Lease to the Hertz Vehicle Financing ("HVF") trustee in the amount of nine equal monthly payments of $84 million commencing in the period January 2021 through September 2021. Of the 121,510 lease vehicles that the Debtors are obligated to dispose of, as of March 31, 2021 the Debtors have disposed approximately 14,000 lease vehicles, of which 9,000 were non-program vehicles. In the first quarter of 2021, the Bankruptcy Court authorized the rejection of certain unexpired leases (the "Lease Rejection Orders") comprised of 278 off airport and 26 airport locations in the Company's U.S. RAC segment. See Note 7, "Leases," for further details. Going Concern The accompanying unaudited condensed consolidated financial statements have been prepared assuming that the Company will continue as a going concern and contemplate the realization of assets and the satisfaction of liabilities in the normal course of business. The Company’s ability to continue as a going concern is contingent upon its ability to successfully implement a plan of reorganization, among other factors, and the realization of assets and the satisfaction of liabilities are subject to uncertainty. Further, any plan of reorganization could materially change the amounts of assets and liabilities reported in the accompanying unaudited condensed consolidated financial statements. The accompanying unaudited condensed consolidated financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern or as a consequence of the Chapter 11 Cases. As a result of the Company's financial condition, defaults under certain debt agreements as disclosed in Note 6, "Debt," and the risks and uncertainties surrounding the Chapter 11 Cases, substantial doubt exists that the Company will be able to continue as a going concern for one year from the issuance date of this Quarterly Report on Form 10-Q. |
Basis of Presentation and Recen
Basis of Presentation and Recently Issued Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2021 | |
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, 2021 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 accompanying 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 Company's vehicle rental operations are typically a seasonal business, with decreased levels of business in the winter months and heightened activity during the spring and summer months for the majority of countries where the Company generates revenues. Effective on the Petition Date, the Company applied accounting standards applicable to reorganizations, Accounting Standards Codification 852 - Reorganizations, in preparing the accompanying unaudited condensed consolidated balance sheet as of December 31, 2020 and the unaudited condensed consolidated financial statements as of and for the three months ended March 31, 2021 which requires the financial statements, for periods subsequent to the commencement of the Chapter 11 Cases, to distinguish transactions and events that are directly associated with the reorganization from the ongoing operations of the business. Accordingly, Pre-petition obligations of the Debtors that may be impacted by the Chapter 11 Cases have been classified as liabilities subject to compromise in the accompanying unaudited condensed consolidated balance sheets as of March 31, 2021 and December 31, 2020. These liabilities are reported at the amounts the Company anticipates will be allowed by the Bankruptcy Court, even if they may be settled for lesser amounts. See Note 15, "Liabilities Subject to Compromise," for additional information. In addition, certain charges related to the Chapter 11 Cases are recorded as reorganization items, net in the accompanying unaudited condensed consolidated statements of operations for the three months ended March 31, 2021. See Note 16, "Reorganization Items, Net," for additional information. 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, 2020 unaudited condensed consolidated balance sheet data is derived from the audited financial statements at that date 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, 2020 (the "2020 Form 10-K"), as filed with the Securities and Exchange Commission ("SEC") on February 26, 2021. Principles of Consolidation The unaudited condensed consolidated financial statements of Hertz Global include the accounts of Hertz Global, 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 of the VIE. 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 of the joint venture. All significant intercompany transactions have been eliminated in consolidation. Recently Issued Accounting Pronouncements Not Yet Adopted Scope of Reference Rate Reform In January 2021, the Financial Accounting Standards Board ("FASB") issued guidance that clarifies that entities with derivative instruments affected by changes to the interest rates used for discounting, margining or contract price alignment due to reference rate reform may elect to apply certain optional expedients and exceptions, including contract modification relief, provided in Topic 848. Entities may elect to apply the guidance on contract modifications either (1) retrospectively as of any date from the beginning of any interim period that includes March 12, 2020 or (2) prospectively to new modifications from any date in an interim period that includes or is after January 7, 2021, up to the date that financial statements are available to be issued. The Company is in the process of assessing the available expedients and exceptions and, if applicable, the method and timing of adoption. |
Divestitures
Divestitures | 3 Months Ended |
Mar. 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Divestitures | Divestitures Donlen Sale On March 30, 2021, the Company completed the previously announced Donlen Sale. The Company recognized a pre-tax gain in its corporate operations of $392 million, net of the impact of foreign currency adjustments, based on the difference in cash proceeds received of $891 million less $543 million net book value of assets sold plus a $45 million receivable in connection with the sale recorded in prepaid expenses and other assets in the accompanying unaudited condensed consolidated balance sheet as of March 31, 2021. The proceeds from the sale are subject to certain post-closing adjustments based on the level of assumed indebtedness, working capital and fleet equity which the Company expects to be finalized during the second quarter of 2021. On March 30, 2021, the Company and the buyer entered into a transition services agreement which provides for certain transitional services in connection with the Donlen Sale. Sale of Non-vehicle Capital Assets During the first quarter of 2020, the Company received additional cash from the sale of certain non-vehicle capital assets in its U.S. Rental Car segment, which was completed in the fourth quarter of 2019, and recognized an additional $20 million pre-tax gain on the sale, which is included in other (income) expense, net in the accompanying unaudited condensed consolidated statement of operations for the three months ended March 31, 2020. Sale of Marketable Securities During the first quarter of 2020, the Company sold marketable securities for $74 million and recognized an immaterial gain on the sale in its corporate operations, which is included in other (income) expense, net in the accompanying unaudited condensed consolidated statement of operations for the three months ended March 31, 2020. |
Revenue Earning Vehicles
Revenue Earning Vehicles | 3 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Earning Vehicles | Revenue Earning Vehicles The components of revenue earning vehicles, net are as follows: (In millions) March 31, December 31, Revenue earning vehicles $ 7,800 $ 7,492 Less accumulated depreciation (1,520) (1,467) 6,280 6,025 Revenue earning vehicles held for sale, net (1) 80 37 Revenue earning vehicles, net $ 6,360 $ 6,062 (1) Represents the carrying amount of vehicles currently placed on the Company's retail lots for sale or actively in the process of being sold through other disposition channels. |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, Net | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets, Net | Goodwill and Intangible Assets, Net Recoverability of Goodwill and Indefinite-lived Intangible Assets As of March 31, 2021, the Company quantitatively tested the recoverability of its goodwill and indefinite-lived intangible assets in the International RAC segment due to continued adverse impacts from COVID-19 and the Company's reduction in cash flow projections. The quantitative fair value test utilized the Company's most recent cash flow projections, including a range of potential outcomes, along with a long-term growth rate of 1% and a range of discount rates between 13% and 15%. Based on the quantitative tests, no impairments were recorded in the first quarter of 2021. However, the fair value of certain tradenames, which are indefinite-lived intangible assets, were in excess by 6% of the carrying value of $540 million. As a result of the foregoing considerations, along with the consideration of other indicators noted in Accounting Standards Codification 350 – Intangibles, Goodwill and Other (“ASC 350”), the Company concluded there were no indicators of impairment triggered for the U.S. RAC segment in the first quarter of 2021. Further deterioration in the general economic conditions in the travel industry, the Company’s cash flows and the Company's ability to obtain future financing to maintain its fleet or the weighted average cost of capital assumptions may result in an impairment charge to earnings in future quarters. The Company will continue to closely monitor actual results versus its expectations as well as any significant changes in the Company's expected timing of emergence from bankruptcy, market events or conditions, including the impact of COVID-19 on the Company's business and the travel industry, and the resulting impact to its assumptions about future estimated cash flows and the weighted average cost of capital. If the Company's expectations of the operating results, both in magnitude or |
Debt
Debt | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Debt The Company's debt, including its available credit facilities, consists of the following ($ in millions): Facility Weighted-Average Interest Rate Fixed or Maturity March 31, December 31, Non-Vehicle Debt Senior Secured Superpriority Debtor-in-Possession Credit Agreement 8.25% Floating 12/2021 $ 750 $ 250 Other Non-Vehicle Debt 8.25% Fixed Various 16 18 Unamortized Debt Issuance Costs and Net (Discount) Premium (26) (25) Total Non-Vehicle Debt Not Subject to Compromise 740 243 Non-Vehicle Debt Subject to Compromise Senior Term Loan 3.50% Floating 6/2023 656 656 Senior RCF 3.38% Floating 6/2021 615 615 Senior Notes (1) 6.11% Fixed 10/2022-1/2028 2,700 2,700 Senior Second Priority Secured Notes 7.63% Fixed 6/2022 350 350 Promissory Notes 7.00% Fixed 1/2028 27 27 Alternative Letter of Credit Facility (2) 5.25% Floating 11/2023 142 114 Senior RCF Letter of Credit Facility 5.50% Floating 6/2021 34 17 Letter of Credit Facility 5.50% Floating 6/2021 23 — Unamortized Debt Issuance Costs and Net (Discount) Premium (36) (36) Total Non-Vehicle Debt Subject to Compromise 4,511 4,443 Vehicle Debt HVF II U.S. ABS Program HVF II U.S. Vehicle Variable Funding Notes HVF II Series 2013-A (3)(4) 3.41% Floating 3/2022 1,665 1,940 1,665 1,940 HVF II U.S. Vehicle Medium Term Notes HVF II Series 2015-3 (4) 3.78% Fixed 9/2020 144 163 HVF II Series 2016-2 (4) 4.12% Fixed 3/2021 232 263 HVF II Series 2016-4 (4) 3.78% Fixed 7/2021 165 187 HVF II Series 2017-1 (4) 4.03% Fixed 10/2020 176 199 HVF II Series 2017-2 (4) 4.45% Fixed 10/2022 145 164 HVF II Series 2018-1 (4) 3.93% Fixed 2/2023 414 468 HVF II Series 2018-2 (4) 4.40% Fixed 6/2021 84 94 HVF II Series 2018-3 (4) 4.69% Fixed 7/2023 84 95 Facility Weighted-Average Interest Rate Fixed or Maturity March 31, December 31, HVF II Series 2019-1 (4) 4.45% Fixed 3/2022 292 330 HVF II Series 2019-2 (4) 4.05% Fixed 5/2024 313 354 HVF II Series 2019-3 (4) 3.30% Fixed 12/2024 311 352 2,360 2,669 HVIF U.S. Fleet Medium Term Notes: HVIF Series 2020-1 3.53% Fixed 11/2021 881 — 881 — Vehicle Debt - Other European Vehicle Notes (5) 5.07% Fixed 10/2021-3/2023 853 888 European ABS (4) 1.60% Floating 11/2021 212 263 Hertz Canadian Securitization (4) 2.44% Floating 1/2023 95 53 Australian Securitization (4) 1.66% Floating 6/2021 99 97 New Zealand RCF 2.95% Floating 6/2021 31 35 U.K. Financing Facility 3.03% Floating 4/2021-2/2024 91 105 Other Vehicle Debt 3.35% Floating 4/2021-11/2024 53 37 1,434 1,478 Unamortized Debt Issuance Costs and Net (Discount) Premium (54) (63) Total Vehicle Debt Not Subject to Compromise 6,286 6,024 Total Debt Not Subject to Compromise $ 7,026 $ 6,267 (1) References to the "Senior Notes" include the series of Hertz's unsecured senior notes set forth in the table below which are included in liabilities subject to compromise in the accompanying unaudited condensed consolidated balance sheets as of March 31, 2021 and December 31, 2020. Outstanding principal amounts for each such series of the Senior Notes is also specified below: (In millions) Outstanding Principal Senior Notes March 31, 2021 December 31, 2020 6.250% Senior Notes due October 2022 $ 500 $ 500 5.500% Senior Notes due October 2024 800 800 7.125% Senior Notes due August 2026 500 500 6.000% Senior Notes due January 2028 900 900 $ 2,700 $ 2,700 (2) Includes default interest. (3) Includes default interest which is comprised of an increase in the contractual spread. (4) 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 originally expected 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. While HVF II remains in an amortization event, as described below, the expected maturity will deviate from its stated, contractual maturity date during amortization as payoff is based on the sale of the underlying vehicles and the pro-rata application of those proceeds across all outstanding HVF II Series of Notes in accordance with their seniority. During the amortization event, the ultimate maturity of the notes will depend upon the length of time the underlying vehicle collateral is sold or the timing of the refinancing of the notes. (5) 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, ("Hertz Netherlands") unsecured senior notes (converted from Euros to U.S. Dollars at a rate of 1.18 to 1 and 1.22 to 1 as of March 31, 2021 and December 31, 2020, 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, 2021 December 31, 2020 4.125% Senior Notes due October 2021 $ 265 $ 276 5.500% Senior Notes due March 2023 588 612 $ 853 $ 888 Chapter 11 As a result of filing the Chapter 11 Cases, as disclosed in Note 1, "Background," the Company reclassified certain of its non-vehicle debt instruments, net of deferred financing costs, discounts and premiums, as applicable, to liabilities subject to compromise in the accompanying unaudited condensed consolidated balance sheets as of March 31, 2021, and December 31, 2020. The Company has suspended accruing and paying interest and amortizing deferred financing costs, discounts and premiums, as applicable, on the Senior Notes, Promissory Notes and Alternative Letter of Credit Facility, as of the Petition Date. The Company is continuing to pay in cash an amount equal to the monthly interest at the non-default rate for the Senior Term Loan and Senior RCF (collectively, "the First Lien Facilities"), and has suspended amortizing the associated deferred financing costs, discounts and premiums for the First Lien Facilities, as applicable, as of the Petition Date. Additionally, the Company is continuing to pay half of the interest at the non-default rate for the Senior Second Priority Secured Notes with the remaining half paid in kind. The filing of the Chapter 11 Cases constituted an event of default that accelerated the Debtors’ obligations under the Senior Term Loan, the Senior RCF, the Letter of Credit Facility and the Alternative Letter of Credit Facility. Additionally, the filing triggered defaults, termination events and/or amortization events under certain obligations of (i) Hertz International Limited, Hertz Netherlands and the direct and indirect subsidiary companies located outside of the United States and Canada (collectively the "International Subsidiaries") (some of which were waived or amended, subject to certain time limitations, and (ii) HVF, HVF II and certain other vehicle financing subsidiaries (collectively the "Non-Debtor Financing Subsidiaries"). As disclosed in Note 1, "Background," based on the Proposed Plan, the Disclosure Statement and commitments received by the Company in April 2021, all of which are subject to approval by the Bankruptcy Court and certain other conditions, events related to the Company's debt are as follows: • Upon exit from Chapter 11, which is currently anticipated to occur in June 2021, the Debtors anticipate eliminating approximately $5.0 billion of existing debt and eliminating the €725 million European Vehicle Notes where the holders' guaranty claims against the Debtors' U.S. entities will be unimpaired as the balance of their debt is expected to be paid by the issuer, Hertz Holdings Netherlands BV. • The Company anticipates obtaining a new secured rental car asset-backed credit facility (the “ABS Facility”) in an aggregate amount of $7.0 billion, comprised of a secured rental car asset-backed variable funding note in the aggregate amount of $3.0 billion and a secured rental car asset-backed bridge financing facility in an aggregate amount of up to $4.0 billion. Certain of the proceeds of the ABS Facility are expected to be used to repay outstanding vehicle financing facilities and to support the Company’s fleet financing needs for its U.S. rental car operations. • The Company also anticipates obtaining new exit credit facilities (the "Exit Credit Facilities") in an aggregate amount of $2.8 billion comprised of a senior secured revolving credit facility in an aggregate committed amount of $1.5 billion plus a senior secured term loan facility in an aggregate principal amount of $1.3 billion. The Exit Credit Facilities will be secured by a first lien of substantially all assets owned as of the date of execution of the Exit Credit Facilities or acquired thereafter. Non-Vehicle Debt Senior Secured Superpriority Debtor-in-Possession Credit Agreement ("DIP Credit Agreement") The DIP Facility matures on December 31, 2021 and has limited covenants and events of default, including one milestone requiring the filing of a plan of reorganization by August 1, 2021. On April 21, 2021, the Company received approval of its Proposed Plan and related Disclosure Statement, as further disclosed in Note 1, "Background." Vehicle Debt HVF II U.S. ABS Program On January 20, 2021, the Bankruptcy Court entered the Second Lease Order, which directed the Debtors, among other things, to make $756 million of base rent payments under the Operating Lease to the HVF trustee in the amount of nine equal monthly payments of $84 million commencing in January 2021 through September 2021. The parties have agreed to defer litigation related to the Operating Lease until September 30, 2021. HVF II is accruing default interest on the HVF II Variable Funding Notes and accruing non-default interest on the U.S. Vehicle Medium Term Notes. Non-default interest is being paid on the HVF II Variable Funding Notes and the U.S. Vehicle Medium Term Notes from funds drawn on existing letter of credit facilities, as described below. Vehicle Debt-Other European Vehicle Notes Hertz Netherlands and certain other international subsidiaries entered into a limited forbearance and lock-up agreement (the “Lock-up Agreement”), as extended, in respect of the European Vehicle Notes pursuant to which the majority noteholders agreed not to take action in respect of any default or event of default that could have resulted from the Chapter 11 Cases, in order to support a transaction set-forth in the Lock-up Agreement, and to be implemented by a scheme of arrangement (subject to conditions and approvals), subsequent to the waiver expiration on December 31, 2020. The transaction set out in the Lock-up Agreement was superseded by positive developments in the Chapter 11 Cases in April 2021 in which the Proposed Plan will both fully repay the European Vehicle Notes and also provide the necessary liquidity for the European business. On April 23, 2021, Hertz International Limited entered into a multi-draw term loan facility (the "HIL Credit Agreement") which provides an aggregate maximum principal of €250 million to meet the liquidity requirements of the European business. As a result, the Lock-Up Agreement has been terminated and the scheme arrangement has been cancelled. European ABS An amortization event, that would have arisen under the European ABS as a result of filing the Chapter 11 Cases, was waived in May 2020 (as amended from time to time) and, in April 2021, such waivers have been superseded by a comprehensive restructuring of the European ABS. The terms of the restructured European ABS provide for aggregate maximum borrowings of €450 million and extend the maturity to April 2022 and, in respect of the guarantees given by Hertz relating to these facilities, the terms of the restructuring also acknowledge that the Proposed Plan will provide for a complete release of any contingent claims. Hertz Canadian Securitization On January 13, 2021, the Bankruptcy Court entered an order authorizing the Debtors to enter into a new series under the Hertz Canadian Securitization, Funding LP Series 2021-A Notes. On January 27, 2021, Funding LP entered into aggregate maximum borrowings of CAD$350 million on a revolving basis, subject to availability under the borrowing base limitation. The initial draw was used, in part, to pay outstanding obligations under the Funding LP Series 2015-A Notes, including any unpaid default interest. As a result of the payoff of the Funding LP Series 2015-A Notes, the Hertz Canadian Securitization amortization event ceased to exist. U.K. Financing Facility Events of default that would have arisen under the U.K. Financing Facility as a result of filing the Chapter 11 Cases were waived in May 2020 (as amended from time to time), and, in April 2021, such waivers have been superseded by a comprehensive restructuring of the U.K. Financing Facility. The terms of the restructured U.K. Financing Facility provide for aggregate maximum borrowings of £100 million and extend the maturity to April 2022 and, in respect of the guarantees given by Hertz relating to these facilities, the terms of the restructuring also acknowledge that the Proposed Plan will provide for a complete release of any contingent claims. Borrowing Capacity and Availability Borrowing capacity and availability comes from the Company's revolving credit facilities. As a result of the filing of the Chapter 11 Cases, almost all of the Company's revolving credit facilities were terminated, as disclosed in the following table. The remaining revolving credit facilities are a combination of cash-flow-based revolving credit facilities and asset-based revolving credit facilities. 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. 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). The following facilities were available to the Company as of March 31, 2021 and are presented net of any outstanding letters of credit: (In millions) Remaining Availability Under Non-Vehicle Debt Senior RCF (1) $ — $ — Senior Secured Superpriority Debtor-in-Possession Credit Agreement 900 900 Letter of Credit Facility (1) — — Alternative Letter of Credit Facility (1) — — Total Non-Vehicle Debt 900 900 Vehicle Debt HVF II U.S. Vehicle Variable Funding Notes (1) — — HVIF Series 2020-1 3,119 35 European ABS 494 4 Hertz Canadian Securitization 183 — Australian Securitization 62 4 U.K. Financing Facility 19 — New Zealand RCF 21 — Total Vehicle Debt 3,898 43 Total $ 4,798 $ 943 (1) As a result of the filing of the Chapter 11 Cases, there is no longer remaining capacity or availability under these facilities, as such unused commitments were terminated. Letters of Credit As of March 31, 2021, there were outstanding standby letters of credit totaling $688 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, $278 million were issued under the Letter of Credit Facility, $194 million were issued under the Senior RCF and $200 million were issued under the Alternative Letter of Credit Facility. As of March 31, 2021, $142 million, $34 million and $23 million of the issued letters of credit have been drawn upon under the Alternative Letter of Credit Facility, Senior RCF and Letter of Credit Facility, respectively, to primarily fund interest payments due under the HVF II Notes and concession payments. The draws remain unreimbursed by the Company, and, except as otherwise set forth in orders from the Bankruptcy Court, the interest on the Senior RCF and Letter of Credit Facility draws are being paid on a monthly basis at a non-default rate, and interest on the Alternative Letter of Credit Facility draws are not being paid or accrued. 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 the value of such assets (including the assets owned by Hertz Vehicle Financing II LP, HVF II GP Corp., Hertz Vehicle Interim Financing LLC, Hertz Vehicle Financing LLC, Rental Car Finance LLC and various international subsidiaries that facilitate the Company's international securitizations) will be available to satisfy the claims of unsecured creditors unless the secured creditors are paid in full. The Company has a 25% ownership interest in 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 accompanying unaudited condensed consolidated financial statements. As of March 31, 2021 and December 31, 2020, IFF No. 2 had total assets of $393 million and $464 million, respectively, primarily comprised of loans receivable, and total liabilities of $393 million and $464 million, respectively, primarily comprised of debt. Covenant Compliance Prior to the filing of the Chapter 11 Cases, Hertz’s consolidated first lien net leverage ratio (the "Leverage Ratio"), as defined in the credit agreements governing the Senior RCF, the Letter of Credit Facility and the Alternative Letter of Credit Facility, as of the last day of any fiscal quarter may not exceed a ratio of 3.00 to 1.00. As a result of the filing of the Chapter 11 Cases, the Company is currently in default under its Senior RCF, the Letter of Credit Facility and the Alternative Letter of Credit Facility, and the Company is in breach of the Leverage Ratio. The DIP Credit Agreement requires a liquidity maintenance test of $275 million, as defined in the DIP Credit Agreement, as of each month end period. As of March 31, 2021, Hertz was in compliance with the liquidity maintenance test. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Leases | Leases The Company enters into certain agreements as a lessor under which it rents vehicles and leases fleets to customers. The Company's operating leases for vehicle rentals have rental periods that are typically short term (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) 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 tolls and refueling charges 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. Prior to the Donlen Sale on March 30, 2021, as further disclosed in Note 3, "Divestitures," the Company had operating leases for fleets as part of its Donlen business which had lease periods that were typically for twelve months, after which the lease converted to a month-to-month lease, allowing the vehicle to be surrendered any time thereafter. These leases contained terminal rental adjustment clauses which were considered variable charges. As a result of the continuing impact from COVID-19 as disclosed in Note 1, "Background," the Company received rent concessions in the form of abatements of fixed and variable rent payments for certain of its airport and off airport locations in the amount of approximately $100 million during the three months ended March 31, 2021, which substantially represents amounts previously due in the period between January 1, 2021 and March 31, 2021. The Company elected to apply the accounting relief provided by the FASB and elected to not evaluate whether the concession is a modification. The Company will account for the concession as if it were part of the existing contract. In the first quarter of 2021, the Bankruptcy Court entered the Lease Rejection Orders which applied, in the aggregate, to 278 off airport and 26 airport locations in the Company's U.S. RAC segment. The following table summarizes the amount of operating lease income and other income included in total revenues in the accompanying unaudited condensed consolidated statements of operations: Three Months Ended (In millions) 2021 2020 Operating lease income from vehicle rentals $ 1,099 $ 1,637 Operating lease income from fleet leasing 149 169 Variable operating lease income 1 33 Revenue accounted for under Topic 842 1,249 1,839 Revenue accounted for under Topic 606 40 84 Total revenues $ 1,289 $ 1,923 |
Restructuring
Restructuring | 3 Months Ended |
Mar. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring Europe Restructuring Due to the continued impact from COVID-19 as disclosed in Note 1, "Background," and recent reductions in European government support, the Company initiated a restructuring program in March 2021 in its International RAC segment, primarily Ireland, affecting 150 employees. The Company accrued charges of $7 million for termination benefits at March 31, 2021, which were recorded in selling, general and administrative expenses in the accompanying unaudited condensed consolidated statement of operations for three months ended March 31, 2021. The program is expected to be completed within the next twelve months. |
Income Tax (Provision) Benefit
Income Tax (Provision) Benefit | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Tax (Provision) Benefit | Income Tax (Provision) Benefit On March 27, 2020, the U.S. federal government passed the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act"). The CARES Act contains many tax provisions including, but not limited to, accelerated alternative minimum tax ("AMT") refunds, payroll tax payment deferrals, employee retention credits, temporary enhanced net operating loss ("NOL") utilization rules and a temporary increase to the interest deduction limitation. The Company has considered the income tax provisions of the CARES Act in the tax benefit calculations for the three months ended March 31, 2021 and 2020 as well the amounts reported for income taxes on the unaudited condensed consolidated balance sheets as of March 31, 2021 and December 31, 2020. The Company continues to monitor global legislation issued in response to COVID-19. Hertz Global The effective tax rate is 29% and 1% for the three months ended March 31, 2021 and 2020, respectively. The effective tax rate is impacted and differs from the U.S. federal statutory rate of 21% as a result of the level and mix of earnings among tax jurisdiction and valuation allowances in certain jurisdictions. Hertz Global recorded a tax provision of $79 million for the three months ended March 31, 2021 compared to a tax benefit of $4 million for the three months ended March 31, 2020. The tax provision for the three months ended March 31, 2021 compared to the tax benefit for the 2020 period is primarily due to the gain on the Donlen Sale as disclosed in Note 3, "Divestitures." Hertz The effective tax rate is 29% and 1% for the three months ended March 31, 2021 and 2020, respectively. The effective tax rate is impacted and differs from the U.S. federal statutory rate of 21% as a result of the level and mix of earnings among tax jurisdiction and valuation allowances in certain jurisdictions. Hertz recorded a tax provision of $79 million for the three months ended March 31, 2021 compared to a tax benefit of $3 million for the three months ended March 31, 2020. The tax benefit for the three months ended March 31, 2021 compared to the tax benefit for the 2020 period is primarily to the gain on the Donlen Sale as disclosed in Note 3, "Divestitures." |
Earnings (Loss) Per Share _ Her
Earnings (Loss) Per Share – Hertz Global | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share – Hertz Global | Earnings (Loss) Per Share – Hertz GlobalBasic 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: Three Months Ended (In millions, except per share data) 2021 2020 Numerator: Net income (loss) attributable to Hertz Global $ 190 $ (356) Denominator: Basic weighted-average shares outstanding 156 142 Dilutive stock options, RSUs and PSUs 1 — Diluted weighted-average shares outstanding 157 142 Antidilutive stock options, RSUs, PSUs and PSAs 1 2 Earnings (loss) per share: Basic earnings (loss) per share $ 1.22 $ (2.50) Diluted earnings (loss) per share $ 1.21 $ (2.50) |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Assets and Liabilities Measured at Fair Value on a Recurring Basis Investments in equity securities that were measured at fair value on a recurring basis consisted of marketable securities which the Company divested of in the first quarter of 2020. See Note 3, "Divestitures," for further information. Fair Value Disclosures The fair value of cash, restricted cash, accounts receivable, accounts payable and accrued liabilities, to the extent the underlying liability will be settled in cash, approximates the carrying values because of the short-term nature of these instruments. The Company’s cash equivalents and restricted cash equivalents primarily consist of investments in money market funds and bank money market and interest-bearing accounts. The Company determines the fair value of cash equivalents and restricted cash equivalents using a market approach based on quoted prices in active markets (i.e., Level 1 inputs). The following table summarizes the ending balances of the Company's cash equivalents and restricted cash equivalents: March 31, 2021 December 31, 2020 (In millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash equivalents $ 1,567 $ — $ — $ 1,567 $ 723 $ — $ — $ 723 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 (i.e., Level 2 inputs). March 31, 2021 As of December 31, 2020 (In millions) Nominal Unpaid Principal Balance Aggregate Fair Value Nominal Unpaid Principal Balance Aggregate Fair Value Non-Vehicle Debt (1) $ 5,313 $ 5,316 $ 4,747 $ 3,382 Vehicle Debt 6,340 6,254 6,087 6,021 Total $ 11,653 $ 11,570 $ 10,834 $ 9,403 (1) Includes Non-Vehicle Debt included in liabilities subject to compromise in the accompanying unaudited condensed consolidated balance sheets as of March 31, 2021 and December 31, 2020. See Note 6, "Debt." Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis Donlen Assets At December 31, 2020 as a result of the then impending Donlen Sale, the associated assets and liabilities were classified as assets held for sale and liabilities held for sale, respectively, in the accompanying unaudited condensed consolidated balance sheet as of December 31, 2020 and were recorded at the lower of carrying value or fair value less any costs to sell. The Company completed the Donlen Sale in March 2021. See Note 3, "Divestitures," for additional information. |
Contingencies and Off-Balance S
Contingencies and Off-Balance Sheet Commitments | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies and Off-Balance Sheet Commitments | Contingencies and Off-Balance Sheet Commitments Legal Proceedings Self-Insured Liabilities The Company is currently a defendant in numerous actions and has received numerous claims on which actions have not yet commenced for self-insured liabilities arising from the operation of motor vehicles rented from the Company. The obligation for self-insured liabilities on self-insured U.S. and international vehicles, as stated in 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 an undiscounted basis and 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, 2021 and December 31, 2020, the Company's liability recorded for self-insured liabilities is $470 million and $488 million, respectively. The Company believes that its analysis is based on the most relevant information available, combined with reasonable assumptions. The liability is subject to significant uncertainties. The adequacy of the liability 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 proceeding to which the Company was a party during the period ending March 31, 2021 or the period after March 31, 2021, but before the filing of this Quarterly Report on Form 10-Q. 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 (as defined in the Company's 2020 Form 10-K) 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 agreed to by the SEC and the Company in December 2018, which was supplemented by reference to the Company’s subsequently filed litigation against former executives (disclosed below). On September 30, 2019, the federal district court of New Jersey denied the plaintiffs’ motion for relief from the April 27, 2017 judgment and a related motion to allow the filing of a proposed fifth amended complaint. On October 30, 2019, the plaintiffs filed a notice of appeal with the U.S. Court of Appeals for the Third Circuit. The parties fully briefed the appeal and oral argument had been scheduled for June 19, 2020. As a result of the Company's bankruptcy, the appeal was stayed as to the Company, but the plaintiffs advocated that the appeal could proceed against the individual defendants. On October 13, 2020, the Third Circuit affirmed the District Court’s dismissal of the plaintiffs’ motion for relief against the individual defendants since the motion was not timely filed and the appeal as to the Company remained stayed. In February 2021, the parties participated in a bankruptcy-related mediation process and arrived at a tentative settlement wherein the Company would pay a $250,000 cash settlement. In return, the plaintiffs would voluntarily dismiss all claims in the underlying action with prejudice and withdraw the plaintiffs’ Proofs of Claim with prejudice. On March 12, 2021, the Bankruptcy Court approved the tentative settlement and the terms of the settlement have now been fully implemented. This matter is now closed. 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 self-insured liabilities, none of those reserves are material. For matters, including the matter 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, 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 Company's consolidated financial condition, results of operations or cash flows in any particular reporting period. Other Proceedings Litigation Against Former Executives - The Company filed litigation in the U.S. District Court for the District of New Jersey against Mark Frissora, Elyse Douglas and John Jefferey Zimmerman on March 25, 2019, and in state court in Florida against Scott Sider on March 28, 2019, all of whom were former executive officers of Old Hertz Holdings. The complaints predominantly allege breach of contract and seek repayment of incentive-based compensation received by the defendants in connection with 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. The parties are currently involved in motion practice in the New Jersey action and discovery and depositions have commenced in the Florida action. In October 2019, the Company entered into a confidential Settlement Agreement with Elyse Douglas. In September and October 2020, the judge in the New Jersey action entered orders requiring the parties and applicable insurers to attend and participate in mediation. The attorneys in the Florida action voluntarily agreed to participate in the same mediation which was held on November 30, 2020. The mediation was unsuccessful, but settlement discussions continued and, on April 14, 2021, the Bankruptcy Court approved a Settlement Agreement between the Company and Scott Sider. Depositions are continuing in the New Jersey action. 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 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 (as defined in the Company's 2019 Form 10-K), 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
Related Party Transactions | 3 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Transactions and Agreements between Hertz Holdings and Hertz In June 2019, Hertz entered into a master loan agreement with Hertz Holdings for a facility size of $425 million with an expiration in June 2020 (the "2019 Master Loan"). The interest rate was based on the U.S. Dollar LIBOR rate plus a margin. As a result of filing the Chapter 11 Cases, as disclosed in Note 1, "Background," the full amount outstanding under the 2019 Master Loan was deemed uncollectible, resulting in a charge of $133 million during the second quarter of 2020. Additionally, the loan due to an affiliate, which represents a tax-related liability from Hertz to Hertz Holdings, in the amount of $65 million was classified as liabilities subject to compromise in the accompanying unaudited condensed consolidated balance sheets of Hertz as of March 31, 2021 and December 31, 2020. See Note 15, "Liabilities Subject to Compromise." On May 23, 2020, Hertz entered into a new master loan agreement with Hertz Holdings for a facility size of $25 million with an expiration in May 2021 (the "New Loan"). The interest rate is based on the U.S. Dollar LIBOR rate plus a margin. As of March 31, 2021 and December 31, 2020, there was $1 million, respectively, outstanding under the New Loan. 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, a related party during the first quarter of 2020, 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 currently rents the leased vehicles to drivers of transportation network companies ("TNC") 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 had an initial term, as extended, of approximately 22 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. ("AEPC"), an entity affiliated with Carl C. Icahn and his affiliates. During the three months ended March 31, 2021, 767 distributed $10 million to AEPC along with the return of certain vehicles, and there were no cash contributions from AEPC to 767. There were no cash distributions or contributions to or from AEPC during the three months ended March 31, 2020, except for certain services. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company’s chief operating decision maker assesses performance and allocates resources based upon the financial information for the Company’s operating segments. The Company aggregates certain of its operating segments into its reportable segments. 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: • U.S. Rental Car ("U.S. RAC") – rental of vehicles (cars, crossovers, vans 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; and • All Other Operations – primarily consists of the Company's Donlen vehicle leasing and fleet management business, which was sold on March 30, 2021, together with other business activities which represented less than 1% of revenues and expenses of the segment. See Note 3, "Divestitures," for further information. As a result of the Donlen Sale, the Company will be revising its reportable segments in the second quarter of 2021, and All Other Operations will no longer be a reportable segment. 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). Corporate includes other items necessary to reconcile the reportable segments to the Company's total amounts. The following tables provide significant statements of operations and balance sheet information by reportable segment for each of Hertz Global and Hertz, as well as Adjusted EBITDA, the measure used to determine segment profitability. Three Months Ended (In millions) 2021 2020 Revenues U.S. Rental Car $ 946 $ 1,381 International Rental Car 207 368 All Other Operations (1) 136 174 Total Hertz Global and Hertz $ 1,289 $ 1,923 Depreciation of revenue earning vehicles and lease charges U.S. Rental Car $ 205 $ 463 International Rental Car 38 89 All Other Operations (1)(2) — 125 Total Hertz Global and Hertz $ 243 $ 677 Adjusted EBITDA U.S. Rental Car $ 24 $ (199) International Rental Car (6) (45) All Other Operations (1) 13 24 Corporate (29) (23) Total Hertz Global and Hertz $ 2 $ (243) (1) Substantially all of this reportable segment is comprised of the Company's Donlen business, which was sold on March 30, 2021 as disclosed in Note 3, "Divestitures." (2) The decrease in depreciation of revenue earning vehicles and lease charges is due to the suspension of depreciation for the Donlen business while classified as held for sale, prior to closing on March 30, 2021 as disclosed in Note 3, "Divestitures." (In millions) March 31, 2021 December 31, 2020 Total assets U.S. Rental Car $ 11,509 $ 11,042 International Rental Car 2,940 2,956 All Other Operations (1) 1 1,818 Corporate 2,160 1,092 Total Hertz Global (2) 16,610 16,908 Corporate - Hertz (3) (28) (28) Total Hertz (2) $ 16,582 $ 16,880 (1) Substantially all of this reportable segment is comprised of the Company's Donlen business, which was sold on March 30, 2021 as disclosed in Note 3, "Divestitures." At December 31, 2020, includes $1.8 billion of Donlen's assets which were classified as held for sale in the accompanying unaudited condensed consolidated balance sheet. (2) The consolidated total assets of Hertz Global and Hertz as of March 31, 2021 and December 31, 2020 include total assets of VIEs of $513 million and $511 million, respectively, which can only be used to settle obligations of the VIEs. See "Special Purpose Entities" in Note 6, "Debt," and "767 Auto Leasing LLC" in Note 13, "Related Party Transactions," for further information. (3) Excludes net proceeds of $28 million from an open market sale of Hertz Global common stock completed in June 2020, which is included in non-vehicle restricted cash in the accompanying unaudited condensed consolidated balance sheets at March 31, 2021 and December 31, 2020. Reconciliations of Adjusted EBITDA by reportable segment to consolidated amounts are summarized below: Hertz Global Three Months Ended (In millions) 2021 2020 Adjusted EBITDA: U.S. Rental Car $ 24 $ (199) International Rental Car (6) (45) All Other Operations (1) 13 24 Total reportable segments 31 (220) Corporate (2) (29) (23) Total Hertz Global 2 (243) Adjustments: Non-vehicle depreciation and amortization (54) (53) Non-vehicle debt interest, net (44) (57) Vehicle debt-related charges (3) (28) (9) Restructuring and restructuring related charges (4) (12) (7) Information technology and finance transformation costs (5) (6) (17) Reorganization items, net (6) (42) — Pre-reorganization charges and non-debtor financing charges (7) (23) — Gain from the Donlen Sale (8) 392 — Other items (9) 83 25 Income (loss) before income taxes $ 268 $ (361) Hertz Three Months Ended (In millions) 2021 2020 Adjusted EBITDA: U.S. Rental Car $ 24 $ (199) International Rental Car (6) (45) All Other Operations (1) 13 24 Total reportable segments 31 (220) Corporate (2) (29) (23) Total Hertz Global 2 (243) Adjustments: Non-vehicle depreciation and amortization (54) (53) Non-vehicle debt interest, net (44) (55) Vehicle debt-related charges (3) (28) (9) Restructuring and restructuring related charges (4) (12) (7) Information technology and finance transformation costs (5) (6) (17) Reorganization items, net (6) (42) — Pre-reorganization charges and non-debtor financing charges (7) (23) — Gain from the Donlen Sale (8) 392 — Other items (9) 83 25 Income (loss) before income taxes $ 268 $ (359) (1) Substantially all of this reportable segment is comprised of the Company's Donlen business, which was sold on March 30, 2021 as disclosed in Note 3, "Divestitures." (2) Represents other reconciling items primarily consisting of general corporate expenses, non-vehicle interest expense, as well as other business activities. (3) Represents vehicle 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. See Note 8, "Restructuring," for further information. Also includes restructuring related charges such as incremental costs incurred directly supporting business transformation initiatives. (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 charges incurred associated with the filing of the Chapter 11 Cases, as disclosed in Note 16, "Reorganization Items, Net." (7) Represents charges incurred prior to the filing of the Chapter 11 Cases, as disclosed in Note 1, "Background," which are comprised of preparation charges for the reorganization, such as professional fees. Also, includes certain non-debtor financing and professional fee charges. (8) Represents the net gain from the sale of the Company's Donlen business on March 30, 2021 as disclosed in Note 3, "Divestitures." (9) Represents miscellaneous items, including non-cash stock-based compensation charges, and amounts attributable to noncontrolling interests. For the three months ended March 31, 2021, also includes $100 million associated with the suspension of depreciation for the Donlen business while classified as held for sale, partially offset by charges for a multiemployer pension plan withdrawal liability. For the three months ended March 31, 2020, also includes a $20 million gain on the sale of non-vehicle capital assets and $13 million in unrealized gains on derivative financial instruments. |
Liabilities Subject to Compromi
Liabilities Subject to Compromise | 3 Months Ended |
Mar. 31, 2021 | |
Reorganizations [Abstract] | |
Liabilities Subject to Compromise | Liabilities Subject to Compromise The accompanying unaudited condensed consolidated balance sheets as of March 31, 2021 and December 31, 2020 include amounts classified as liabilities subject to compromise, which represent Pre-petition liabilities the Company anticipates will be allowed as claims in the Chapter 11 Cases. These amounts represent the Debtors' current estimate of known or potential obligations to be resolved in connection with the Chapter 11 Cases and may differ from actual future settlement amounts. The Company will continue to evaluate these liabilities throughout the Chapter 11 process and adjust amounts as necessary. Such adjustments could be material and will be recorded in reorganization items, net in the accompanying unaudited condensed consolidated statement of operations. The following table summarizes liabilities subject to compromise: (In millions) March 31, 2021 December 31, 2020 Accounts payable $ 239 $ 267 Accrued liabilities (1) 139 166 Accrued taxes, net 16 19 Accrued interest on debt subject to compromise 73 70 Debt subject to compromise (2) 4,511 4,443 Liabilities subject to compromise - Hertz Global $ 4,978 $ 4,965 Due from Affiliate - Hertz (3) 65 65 Liabilities subject to compromise - Hertz $ 5,043 $ 5,030 (1) Includes $24 million of U.S. pension benefit obligation reported as liabilities subject to compromise as of March 31, 2021 and December 31, 2020. (2) See Note 6, "Debt," for details of Pre-petition, non-vehicle debt reported as liabilities subject to compromise as of March 31, 2021 and December 31, 2020. (3) See Note 13, "Related Party Transactions," for details of a Pre-petition intercompany loan due to an affiliate reported as liabilities subject to compromise as of March 31, 2021 and December 31, 2020. |
Reorganization Items, Net
Reorganization Items, Net | 3 Months Ended |
Mar. 31, 2021 | |
Reorganizations [Abstract] | |
Reorganization Items, Net | Liabilities Subject to Compromise The accompanying unaudited condensed consolidated balance sheets as of March 31, 2021 and December 31, 2020 include amounts classified as liabilities subject to compromise, which represent Pre-petition liabilities the Company anticipates will be allowed as claims in the Chapter 11 Cases. These amounts represent the Debtors' current estimate of known or potential obligations to be resolved in connection with the Chapter 11 Cases and may differ from actual future settlement amounts. The Company will continue to evaluate these liabilities throughout the Chapter 11 process and adjust amounts as necessary. Such adjustments could be material and will be recorded in reorganization items, net in the accompanying unaudited condensed consolidated statement of operations. The following table summarizes liabilities subject to compromise: (In millions) March 31, 2021 December 31, 2020 Accounts payable $ 239 $ 267 Accrued liabilities (1) 139 166 Accrued taxes, net 16 19 Accrued interest on debt subject to compromise 73 70 Debt subject to compromise (2) 4,511 4,443 Liabilities subject to compromise - Hertz Global $ 4,978 $ 4,965 Due from Affiliate - Hertz (3) 65 65 Liabilities subject to compromise - Hertz $ 5,043 $ 5,030 (1) Includes $24 million of U.S. pension benefit obligation reported as liabilities subject to compromise as of March 31, 2021 and December 31, 2020. (2) See Note 6, "Debt," for details of Pre-petition, non-vehicle debt reported as liabilities subject to compromise as of March 31, 2021 and December 31, 2020. (3) See Note 13, "Related Party Transactions," for details of a Pre-petition intercompany loan due to an affiliate reported as liabilities subject to compromise as of March 31, 2021 and December 31, 2020. |
Condensed Combined Debtor in Po
Condensed Combined Debtor in Possession Financial Information | 3 Months Ended |
Mar. 31, 2021 | |
Guarantor and Non-Guarantor Condensed Consolidating Financial Statements Disclosure [Abstract] | |
Condensed Combined Debtor in Possession Financial Information | Condensed Combined Debtor-in-Possession Financial Information The following financial statements represent the unaudited condensed combined financial statements of the Debtors. The results of the non-debtor entities are not included in these financial statements. Intercompany transactions among the Debtors have been eliminated in the following financial statements. Intercompany transactions among the Debtor and non-debtor entities have not been eliminated in the following financial statements. Amounts reported for Hertz Global and Hertz are substantially the same, with the exception of that related to interest expense (income) and tax provision (benefit), as well as activity associated with the master loan agreement between Hertz and Hertz Global as disclosed in Note 13, "Related Party Transactions." THE DEBTORS CONDENSED COMBINED BALANCE SHEET (in millions) March 31, 2021 December 31, 2020 ASSETS Cash and cash equivalents $ 534 $ 492 Restricted cash and cash equivalents 1,179 305 Total cash, cash equivalents, restricted cash and restricted cash equivalents 1,713 797 Receivables, net 404 388 Due from non-debtor affiliates 51,607 51,638 Prepaid expenses and other assets 265 183 Revenue earning vehicles, net 5 37 Property and equipment, net 530 549 Operating lease right-of-use assets 1,353 1,424 Investment in subsidiaries, net 4,893 4,527 Intangible assets, net 2,966 2,988 Goodwill 488 488 Assets held for sale (1) — 173 Total assets $ 64,224 $ 63,192 LIABILITIES AND EQUITY Accounts payable $ 219 $ 200 Accrued liabilities 477 412 Accrued taxes, net 84 48 Debt 740 242 Operating lease liabilities 1,314 1,385 Self-insured liabilities 243 251 Deferred income taxes, net 1,208 887 Total liabilities not subject to compromise 4,285 3,425 Liabilities subject to compromise 59,674 59,637 Liabilities held for sale (1) — 74 Total liabilities 63,959 63,136 Total equity attributable to the Debtors 265 56 Total liabilities and equity $ 64,224 $ 63,192 (1) At December 31, 2020, the assets and certain liabilities of the Company's Donlen business were classified as assets held for sale and liabilities held for sale, respectively. On March 30, 2021, the Company's Donlen business was sold as disclosed in Note 3, "Divestitures." THE DEBTORS CONDENSED COMBINED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (in millions) Three Months Ended Total revenues $ 942 Expenses: Direct vehicle and operating 687 Depreciation of revenue earning vehicles and lease charges 322 Selling, general and administrative 117 Interest (income) expense, net 34 Other (income) expense, net 18 Reorganization items, net 42 (Gain) from the sale of a business (392) Total expenses 828 Income (loss) before income taxes and equity in earnings (losses) of non-debtor entities 114 Income tax (provision) benefit (335) Equity in earnings (losses) of non-debtor entities 411 Net income (loss) 190 Total other comprehensive income (loss), net of tax 17 Comprehensive income (loss) attributable to the Debtors $ 207 THE DEBTORS CONDENSED COMBINED STATEMENT OF CASH FLOWS (in millions) Three Months Ended Net cash provided by (used in) operating activities $ (53) Cash flows from investing activities: Revenue earning vehicles expenditures (10) Proceeds from disposal of revenue earning vehicles (25) Non-vehicle capital asset expenditures (8) Proceeds from non-vehicle capital assets disposed of 3 Proceeds from the sale of business, net of cash sold 818 Capital contributions to non-debtor entities (411) Return of capital from non-debtor entities 43 Net cash provided by (used in) investing activities 410 Cash flows from financing activities: Proceeds from issuance of non-vehicle debt 560 Repayments of non-vehicle debt (1) Net cash provided by (used in) financing activities 559 Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents during the period 916 Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period 797 Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period $ 1,713 |
Basis of Presentation and Rec_2
Basis of Presentation and Recently Issued Accounting Pronouncements (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of Consolidation | Principles of ConsolidationThe unaudited condensed consolidated financial statements of Hertz Global include the accounts of Hertz Global, 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 of the VIE. 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 of the joint venture. All significant intercompany transactions have been eliminated in consolidation. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Not Yet Adopted Scope of Reference Rate Reform In January 2021, the Financial Accounting Standards Board ("FASB") issued guidance that clarifies that entities with derivative instruments affected by changes to the interest rates used for discounting, margining or contract price alignment due to reference rate reform may elect to apply certain optional expedients and exceptions, including contract modification relief, provided in Topic 848. Entities may elect to apply the guidance on contract modifications either (1) retrospectively as of any date from the beginning of any interim period that includes March 12, 2020 or (2) prospectively to new modifications from any date in an interim period that includes or is after January 7, 2021, up to the date that financial statements are available to be issued. The Company is in the process of assessing the available expedients and exceptions and, if applicable, the method and timing of adoption. |
Revenue Earning Vehicles (Table
Revenue Earning Vehicles (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Components of Revenue Earning Vehicles, Net | The components of revenue earning vehicles, net are as follows: (In millions) March 31, December 31, Revenue earning vehicles $ 7,800 $ 7,492 Less accumulated depreciation (1,520) (1,467) 6,280 6,025 Revenue earning vehicles held for sale, net (1) 80 37 Revenue earning vehicles, net $ 6,360 $ 6,062 (1) Represents the carrying amount of vehicles currently placed on the Company's retail lots for sale or actively in the process of being sold through other disposition channels. |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Components of Debt | The Company's debt, including its available credit facilities, consists of the following ($ in millions): Facility Weighted-Average Interest Rate Fixed or Maturity March 31, December 31, Non-Vehicle Debt Senior Secured Superpriority Debtor-in-Possession Credit Agreement 8.25% Floating 12/2021 $ 750 $ 250 Other Non-Vehicle Debt 8.25% Fixed Various 16 18 Unamortized Debt Issuance Costs and Net (Discount) Premium (26) (25) Total Non-Vehicle Debt Not Subject to Compromise 740 243 Non-Vehicle Debt Subject to Compromise Senior Term Loan 3.50% Floating 6/2023 656 656 Senior RCF 3.38% Floating 6/2021 615 615 Senior Notes (1) 6.11% Fixed 10/2022-1/2028 2,700 2,700 Senior Second Priority Secured Notes 7.63% Fixed 6/2022 350 350 Promissory Notes 7.00% Fixed 1/2028 27 27 Alternative Letter of Credit Facility (2) 5.25% Floating 11/2023 142 114 Senior RCF Letter of Credit Facility 5.50% Floating 6/2021 34 17 Letter of Credit Facility 5.50% Floating 6/2021 23 — Unamortized Debt Issuance Costs and Net (Discount) Premium (36) (36) Total Non-Vehicle Debt Subject to Compromise 4,511 4,443 Vehicle Debt HVF II U.S. ABS Program HVF II U.S. Vehicle Variable Funding Notes HVF II Series 2013-A (3)(4) 3.41% Floating 3/2022 1,665 1,940 1,665 1,940 HVF II U.S. Vehicle Medium Term Notes HVF II Series 2015-3 (4) 3.78% Fixed 9/2020 144 163 HVF II Series 2016-2 (4) 4.12% Fixed 3/2021 232 263 HVF II Series 2016-4 (4) 3.78% Fixed 7/2021 165 187 HVF II Series 2017-1 (4) 4.03% Fixed 10/2020 176 199 HVF II Series 2017-2 (4) 4.45% Fixed 10/2022 145 164 HVF II Series 2018-1 (4) 3.93% Fixed 2/2023 414 468 HVF II Series 2018-2 (4) 4.40% Fixed 6/2021 84 94 HVF II Series 2018-3 (4) 4.69% Fixed 7/2023 84 95 Facility Weighted-Average Interest Rate Fixed or Maturity March 31, December 31, HVF II Series 2019-1 (4) 4.45% Fixed 3/2022 292 330 HVF II Series 2019-2 (4) 4.05% Fixed 5/2024 313 354 HVF II Series 2019-3 (4) 3.30% Fixed 12/2024 311 352 2,360 2,669 HVIF U.S. Fleet Medium Term Notes: HVIF Series 2020-1 3.53% Fixed 11/2021 881 — 881 — Vehicle Debt - Other European Vehicle Notes (5) 5.07% Fixed 10/2021-3/2023 853 888 European ABS (4) 1.60% Floating 11/2021 212 263 Hertz Canadian Securitization (4) 2.44% Floating 1/2023 95 53 Australian Securitization (4) 1.66% Floating 6/2021 99 97 New Zealand RCF 2.95% Floating 6/2021 31 35 U.K. Financing Facility 3.03% Floating 4/2021-2/2024 91 105 Other Vehicle Debt 3.35% Floating 4/2021-11/2024 53 37 1,434 1,478 Unamortized Debt Issuance Costs and Net (Discount) Premium (54) (63) Total Vehicle Debt Not Subject to Compromise 6,286 6,024 Total Debt Not Subject to Compromise $ 7,026 $ 6,267 (1) References to the "Senior Notes" include the series of Hertz's unsecured senior notes set forth in the table below which are included in liabilities subject to compromise in the accompanying unaudited condensed consolidated balance sheets as of March 31, 2021 and December 31, 2020. Outstanding principal amounts for each such series of the Senior Notes is also specified below: (In millions) Outstanding Principal Senior Notes March 31, 2021 December 31, 2020 6.250% Senior Notes due October 2022 $ 500 $ 500 5.500% Senior Notes due October 2024 800 800 7.125% Senior Notes due August 2026 500 500 6.000% Senior Notes due January 2028 900 900 $ 2,700 $ 2,700 (2) Includes default interest. (3) Includes default interest which is comprised of an increase in the contractual spread. (4) 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 originally expected 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. While HVF II remains in an amortization event, as described below, the expected maturity will deviate from its stated, contractual maturity date during amortization as payoff is based on the sale of the underlying vehicles and the pro-rata application of those proceeds across all outstanding HVF II Series of Notes in accordance with their seniority. During the amortization event, the ultimate maturity of the notes will depend upon the length of time the underlying vehicle collateral is sold or the timing of the refinancing of the notes. (5) 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, ("Hertz Netherlands") unsecured senior notes (converted from Euros to U.S. Dollars at a rate of 1.18 to 1 and 1.22 to 1 as of March 31, 2021 and December 31, 2020, 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, 2021 December 31, 2020 4.125% Senior Notes due October 2021 $ 265 $ 276 5.500% Senior Notes due March 2023 588 612 $ 853 $ 888 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 (i.e., Level 2 inputs). March 31, 2021 As of December 31, 2020 (In millions) Nominal Unpaid Principal Balance Aggregate Fair Value Nominal Unpaid Principal Balance Aggregate Fair Value Non-Vehicle Debt (1) $ 5,313 $ 5,316 $ 4,747 $ 3,382 Vehicle Debt 6,340 6,254 6,087 6,021 Total $ 11,653 $ 11,570 $ 10,834 $ 9,403 (1) Includes Non-Vehicle Debt included in liabilities subject to compromise in the accompanying unaudited condensed consolidated balance sheets as of March 31, 2021 and December 31, 2020. See Note 6, "Debt." |
Schedule of Facilities Available for the Use of the Company and Subsidiaries | The following facilities were available to the Company as of March 31, 2021 and are presented net of any outstanding letters of credit: (In millions) Remaining Availability Under Non-Vehicle Debt Senior RCF (1) $ — $ — Senior Secured Superpriority Debtor-in-Possession Credit Agreement 900 900 Letter of Credit Facility (1) — — Alternative Letter of Credit Facility (1) — — Total Non-Vehicle Debt 900 900 Vehicle Debt HVF II U.S. Vehicle Variable Funding Notes (1) — — HVIF Series 2020-1 3,119 35 European ABS 494 4 Hertz Canadian Securitization 183 — Australian Securitization 62 4 U.K. Financing Facility 19 — New Zealand RCF 21 — Total Vehicle Debt 3,898 43 Total $ 4,798 $ 943 (1) As a result of the filing of the Chapter 11 Cases, there is no longer remaining capacity or availability under these facilities, as such unused commitments were terminated. |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Operating Lease, Lease Income | The following table summarizes the amount of operating lease income and other income included in total revenues in the accompanying unaudited condensed consolidated statements of operations: Three Months Ended (In millions) 2021 2020 Operating lease income from vehicle rentals $ 1,099 $ 1,637 Operating lease income from fleet leasing 149 169 Variable operating lease income 1 33 Revenue accounted for under Topic 842 1,249 1,839 Revenue accounted for under Topic 606 40 84 Total revenues $ 1,289 $ 1,923 |
Earnings (Loss) Per Share _ H_2
Earnings (Loss) Per Share – Hertz Global (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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: Three Months Ended (In millions, except per share data) 2021 2020 Numerator: Net income (loss) attributable to Hertz Global $ 190 $ (356) Denominator: Basic weighted-average shares outstanding 156 142 Dilutive stock options, RSUs and PSUs 1 — Diluted weighted-average shares outstanding 157 142 Antidilutive stock options, RSUs, PSUs and PSAs 1 2 Earnings (loss) per share: Basic earnings (loss) per share $ 1.22 $ (2.50) Diluted earnings (loss) per share $ 1.21 $ (2.50) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Cash, Cash Equivalents and Investments | The following table summarizes the ending balances of the Company's cash equivalents and restricted cash equivalents: March 31, 2021 December 31, 2020 (In millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash equivalents $ 1,567 $ — $ — $ 1,567 $ 723 $ — $ — $ 723 |
Components of Debt | The Company's debt, including its available credit facilities, consists of the following ($ in millions): Facility Weighted-Average Interest Rate Fixed or Maturity March 31, December 31, Non-Vehicle Debt Senior Secured Superpriority Debtor-in-Possession Credit Agreement 8.25% Floating 12/2021 $ 750 $ 250 Other Non-Vehicle Debt 8.25% Fixed Various 16 18 Unamortized Debt Issuance Costs and Net (Discount) Premium (26) (25) Total Non-Vehicle Debt Not Subject to Compromise 740 243 Non-Vehicle Debt Subject to Compromise Senior Term Loan 3.50% Floating 6/2023 656 656 Senior RCF 3.38% Floating 6/2021 615 615 Senior Notes (1) 6.11% Fixed 10/2022-1/2028 2,700 2,700 Senior Second Priority Secured Notes 7.63% Fixed 6/2022 350 350 Promissory Notes 7.00% Fixed 1/2028 27 27 Alternative Letter of Credit Facility (2) 5.25% Floating 11/2023 142 114 Senior RCF Letter of Credit Facility 5.50% Floating 6/2021 34 17 Letter of Credit Facility 5.50% Floating 6/2021 23 — Unamortized Debt Issuance Costs and Net (Discount) Premium (36) (36) Total Non-Vehicle Debt Subject to Compromise 4,511 4,443 Vehicle Debt HVF II U.S. ABS Program HVF II U.S. Vehicle Variable Funding Notes HVF II Series 2013-A (3)(4) 3.41% Floating 3/2022 1,665 1,940 1,665 1,940 HVF II U.S. Vehicle Medium Term Notes HVF II Series 2015-3 (4) 3.78% Fixed 9/2020 144 163 HVF II Series 2016-2 (4) 4.12% Fixed 3/2021 232 263 HVF II Series 2016-4 (4) 3.78% Fixed 7/2021 165 187 HVF II Series 2017-1 (4) 4.03% Fixed 10/2020 176 199 HVF II Series 2017-2 (4) 4.45% Fixed 10/2022 145 164 HVF II Series 2018-1 (4) 3.93% Fixed 2/2023 414 468 HVF II Series 2018-2 (4) 4.40% Fixed 6/2021 84 94 HVF II Series 2018-3 (4) 4.69% Fixed 7/2023 84 95 Facility Weighted-Average Interest Rate Fixed or Maturity March 31, December 31, HVF II Series 2019-1 (4) 4.45% Fixed 3/2022 292 330 HVF II Series 2019-2 (4) 4.05% Fixed 5/2024 313 354 HVF II Series 2019-3 (4) 3.30% Fixed 12/2024 311 352 2,360 2,669 HVIF U.S. Fleet Medium Term Notes: HVIF Series 2020-1 3.53% Fixed 11/2021 881 — 881 — Vehicle Debt - Other European Vehicle Notes (5) 5.07% Fixed 10/2021-3/2023 853 888 European ABS (4) 1.60% Floating 11/2021 212 263 Hertz Canadian Securitization (4) 2.44% Floating 1/2023 95 53 Australian Securitization (4) 1.66% Floating 6/2021 99 97 New Zealand RCF 2.95% Floating 6/2021 31 35 U.K. Financing Facility 3.03% Floating 4/2021-2/2024 91 105 Other Vehicle Debt 3.35% Floating 4/2021-11/2024 53 37 1,434 1,478 Unamortized Debt Issuance Costs and Net (Discount) Premium (54) (63) Total Vehicle Debt Not Subject to Compromise 6,286 6,024 Total Debt Not Subject to Compromise $ 7,026 $ 6,267 (1) References to the "Senior Notes" include the series of Hertz's unsecured senior notes set forth in the table below which are included in liabilities subject to compromise in the accompanying unaudited condensed consolidated balance sheets as of March 31, 2021 and December 31, 2020. Outstanding principal amounts for each such series of the Senior Notes is also specified below: (In millions) Outstanding Principal Senior Notes March 31, 2021 December 31, 2020 6.250% Senior Notes due October 2022 $ 500 $ 500 5.500% Senior Notes due October 2024 800 800 7.125% Senior Notes due August 2026 500 500 6.000% Senior Notes due January 2028 900 900 $ 2,700 $ 2,700 (2) Includes default interest. (3) Includes default interest which is comprised of an increase in the contractual spread. (4) 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 originally expected 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. While HVF II remains in an amortization event, as described below, the expected maturity will deviate from its stated, contractual maturity date during amortization as payoff is based on the sale of the underlying vehicles and the pro-rata application of those proceeds across all outstanding HVF II Series of Notes in accordance with their seniority. During the amortization event, the ultimate maturity of the notes will depend upon the length of time the underlying vehicle collateral is sold or the timing of the refinancing of the notes. (5) 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, ("Hertz Netherlands") unsecured senior notes (converted from Euros to U.S. Dollars at a rate of 1.18 to 1 and 1.22 to 1 as of March 31, 2021 and December 31, 2020, 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, 2021 December 31, 2020 4.125% Senior Notes due October 2021 $ 265 $ 276 5.500% Senior Notes due March 2023 588 612 $ 853 $ 888 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 (i.e., Level 2 inputs). March 31, 2021 As of December 31, 2020 (In millions) Nominal Unpaid Principal Balance Aggregate Fair Value Nominal Unpaid Principal Balance Aggregate Fair Value Non-Vehicle Debt (1) $ 5,313 $ 5,316 $ 4,747 $ 3,382 Vehicle Debt 6,340 6,254 6,087 6,021 Total $ 11,653 $ 11,570 $ 10,834 $ 9,403 (1) Includes Non-Vehicle Debt included in liabilities subject to compromise in the accompanying unaudited condensed consolidated balance sheets as of March 31, 2021 and December 31, 2020. See Note 6, "Debt." |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following tables provide significant statements of operations and balance sheet information by reportable segment for each of Hertz Global and Hertz, as well as Adjusted EBITDA, the measure used to determine segment profitability. Three Months Ended (In millions) 2021 2020 Revenues U.S. Rental Car $ 946 $ 1,381 International Rental Car 207 368 All Other Operations (1) 136 174 Total Hertz Global and Hertz $ 1,289 $ 1,923 Depreciation of revenue earning vehicles and lease charges U.S. Rental Car $ 205 $ 463 International Rental Car 38 89 All Other Operations (1)(2) — 125 Total Hertz Global and Hertz $ 243 $ 677 Adjusted EBITDA U.S. Rental Car $ 24 $ (199) International Rental Car (6) (45) All Other Operations (1) 13 24 Corporate (29) (23) Total Hertz Global and Hertz $ 2 $ (243) (1) Substantially all of this reportable segment is comprised of the Company's Donlen business, which was sold on March 30, 2021 as disclosed in Note 3, "Divestitures." (2) The decrease in depreciation of revenue earning vehicles and lease charges is due to the suspension of depreciation for the Donlen business while classified as held for sale, prior to closing on March 30, 2021 as disclosed in Note 3, "Divestitures." (In millions) March 31, 2021 December 31, 2020 Total assets U.S. Rental Car $ 11,509 $ 11,042 International Rental Car 2,940 2,956 All Other Operations (1) 1 1,818 Corporate 2,160 1,092 Total Hertz Global (2) 16,610 16,908 Corporate - Hertz (3) (28) (28) Total Hertz (2) $ 16,582 $ 16,880 (1) Substantially all of this reportable segment is comprised of the Company's Donlen business, which was sold on March 30, 2021 as disclosed in Note 3, "Divestitures." At December 31, 2020, includes $1.8 billion of Donlen's assets which were classified as held for sale in the accompanying unaudited condensed consolidated balance sheet. (2) The consolidated total assets of Hertz Global and Hertz as of March 31, 2021 and December 31, 2020 include total assets of VIEs of $513 million and $511 million, respectively, which can only be used to settle obligations of the VIEs. See "Special Purpose Entities" in Note 6, "Debt," and "767 Auto Leasing LLC" in Note 13, "Related Party Transactions," for further information. (3) Excludes net proceeds of $28 million from an open market sale of Hertz Global common stock completed in June 2020, which is included in non-vehicle restricted cash in the accompanying unaudited condensed consolidated balance sheets at March 31, 2021 and December 31, 2020. Reconciliations of Adjusted EBITDA by reportable segment to consolidated amounts are summarized below: Hertz Global Three Months Ended (In millions) 2021 2020 Adjusted EBITDA: U.S. Rental Car $ 24 $ (199) International Rental Car (6) (45) All Other Operations (1) 13 24 Total reportable segments 31 (220) Corporate (2) (29) (23) Total Hertz Global 2 (243) Adjustments: Non-vehicle depreciation and amortization (54) (53) Non-vehicle debt interest, net (44) (57) Vehicle debt-related charges (3) (28) (9) Restructuring and restructuring related charges (4) (12) (7) Information technology and finance transformation costs (5) (6) (17) Reorganization items, net (6) (42) — Pre-reorganization charges and non-debtor financing charges (7) (23) — Gain from the Donlen Sale (8) 392 — Other items (9) 83 25 Income (loss) before income taxes $ 268 $ (361) Hertz Three Months Ended (In millions) 2021 2020 Adjusted EBITDA: U.S. Rental Car $ 24 $ (199) International Rental Car (6) (45) All Other Operations (1) 13 24 Total reportable segments 31 (220) Corporate (2) (29) (23) Total Hertz Global 2 (243) Adjustments: Non-vehicle depreciation and amortization (54) (53) Non-vehicle debt interest, net (44) (55) Vehicle debt-related charges (3) (28) (9) Restructuring and restructuring related charges (4) (12) (7) Information technology and finance transformation costs (5) (6) (17) Reorganization items, net (6) (42) — Pre-reorganization charges and non-debtor financing charges (7) (23) — Gain from the Donlen Sale (8) 392 — Other items (9) 83 25 Income (loss) before income taxes $ 268 $ (359) (1) Substantially all of this reportable segment is comprised of the Company's Donlen business, which was sold on March 30, 2021 as disclosed in Note 3, "Divestitures." (2) Represents other reconciling items primarily consisting of general corporate expenses, non-vehicle interest expense, as well as other business activities. (3) Represents vehicle 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. See Note 8, "Restructuring," for further information. Also includes restructuring related charges such as incremental costs incurred directly supporting business transformation initiatives. (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 charges incurred associated with the filing of the Chapter 11 Cases, as disclosed in Note 16, "Reorganization Items, Net." (7) Represents charges incurred prior to the filing of the Chapter 11 Cases, as disclosed in Note 1, "Background," which are comprised of preparation charges for the reorganization, such as professional fees. Also, includes certain non-debtor financing and professional fee charges. (8) Represents the net gain from the sale of the Company's Donlen business on March 30, 2021 as disclosed in Note 3, "Divestitures." (9) Represents miscellaneous items, including non-cash stock-based compensation charges, and amounts attributable to noncontrolling interests. For the three months ended March 31, 2021, also includes $100 million associated with the suspension of depreciation for the Donlen business while classified as held for sale, partially offset by charges for a multiemployer pension plan withdrawal liability. For the three months ended March 31, 2020, also includes a $20 million gain on the sale of non-vehicle capital assets and $13 million in unrealized gains on derivative financial instruments. |
Liabilities Subject to Compro_2
Liabilities Subject to Compromise (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Reorganizations [Abstract] | |
Schedule of Liabilities Subject to Compromise | The following table summarizes liabilities subject to compromise: (In millions) March 31, 2021 December 31, 2020 Accounts payable $ 239 $ 267 Accrued liabilities (1) 139 166 Accrued taxes, net 16 19 Accrued interest on debt subject to compromise 73 70 Debt subject to compromise (2) 4,511 4,443 Liabilities subject to compromise - Hertz Global $ 4,978 $ 4,965 Due from Affiliate - Hertz (3) 65 65 Liabilities subject to compromise - Hertz $ 5,043 $ 5,030 (1) Includes $24 million of U.S. pension benefit obligation reported as liabilities subject to compromise as of March 31, 2021 and December 31, 2020. (2) See Note 6, "Debt," for details of Pre-petition, non-vehicle debt reported as liabilities subject to compromise as of March 31, 2021 and December 31, 2020. (3) See Note 13, "Related Party Transactions," for details of a Pre-petition intercompany loan due to an affiliate reported as liabilities subject to compromise as of March 31, 2021 and December 31, 2020. |
Condensed Combined Debtor in _2
Condensed Combined Debtor in Possession Financial Information (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Guarantor and Non-Guarantor Condensed Consolidating Financial Statements Disclosure [Abstract] | |
Condensed Balance Sheet | THE DEBTORS CONDENSED COMBINED BALANCE SHEET (in millions) March 31, 2021 December 31, 2020 ASSETS Cash and cash equivalents $ 534 $ 492 Restricted cash and cash equivalents 1,179 305 Total cash, cash equivalents, restricted cash and restricted cash equivalents 1,713 797 Receivables, net 404 388 Due from non-debtor affiliates 51,607 51,638 Prepaid expenses and other assets 265 183 Revenue earning vehicles, net 5 37 Property and equipment, net 530 549 Operating lease right-of-use assets 1,353 1,424 Investment in subsidiaries, net 4,893 4,527 Intangible assets, net 2,966 2,988 Goodwill 488 488 Assets held for sale (1) — 173 Total assets $ 64,224 $ 63,192 LIABILITIES AND EQUITY Accounts payable $ 219 $ 200 Accrued liabilities 477 412 Accrued taxes, net 84 48 Debt 740 242 Operating lease liabilities 1,314 1,385 Self-insured liabilities 243 251 Deferred income taxes, net 1,208 887 Total liabilities not subject to compromise 4,285 3,425 Liabilities subject to compromise 59,674 59,637 Liabilities held for sale (1) — 74 Total liabilities 63,959 63,136 Total equity attributable to the Debtors 265 56 Total liabilities and equity $ 64,224 $ 63,192 (1) At December 31, 2020, the assets and certain liabilities of the Company's Donlen business were classified as assets held for sale and liabilities held for sale, respectively. On March 30, 2021, the Company's Donlen business was sold as disclosed in Note 3, "Divestitures." |
Condensed Income Statement | THE DEBTORS CONDENSED COMBINED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (in millions) Three Months Ended Total revenues $ 942 Expenses: Direct vehicle and operating 687 Depreciation of revenue earning vehicles and lease charges 322 Selling, general and administrative 117 Interest (income) expense, net 34 Other (income) expense, net 18 Reorganization items, net 42 (Gain) from the sale of a business (392) Total expenses 828 Income (loss) before income taxes and equity in earnings (losses) of non-debtor entities 114 Income tax (provision) benefit (335) Equity in earnings (losses) of non-debtor entities 411 Net income (loss) 190 Total other comprehensive income (loss), net of tax 17 Comprehensive income (loss) attributable to the Debtors $ 207 |
Condensed Cash Flow Statement | THE DEBTORS CONDENSED COMBINED STATEMENT OF CASH FLOWS (in millions) Three Months Ended Net cash provided by (used in) operating activities $ (53) Cash flows from investing activities: Revenue earning vehicles expenditures (10) Proceeds from disposal of revenue earning vehicles (25) Non-vehicle capital asset expenditures (8) Proceeds from non-vehicle capital assets disposed of 3 Proceeds from the sale of business, net of cash sold 818 Capital contributions to non-debtor entities (411) Return of capital from non-debtor entities 43 Net cash provided by (used in) investing activities 410 Cash flows from financing activities: Proceeds from issuance of non-vehicle debt 560 Repayments of non-vehicle debt (1) Net cash provided by (used in) financing activities 559 Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents during the period 916 Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period 797 Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period $ 1,713 |
Background (Details)
Background (Details) $ in Millions, $ in Millions | Jan. 27, 2021CAD ($) | Jan. 20, 2021USD ($)vehiclepayment | Mar. 31, 2021USD ($)leasevehicleclaim | Mar. 31, 2020USD ($) | Apr. 15, 2021USD ($) | Mar. 31, 2021EUR (€) | Jan. 13, 2021CAD ($) | Dec. 31, 2020USD ($) |
Debt Instrument [Line Items] | ||||||||
Number of proofs of claims filed, amount | $ 104,900 | |||||||
Net proceeds from repayment or recovery, percent | 15.00% | |||||||
Number of proofs of claims filed | claim | 15,000 | |||||||
Financing arrangement, liquidity comprised of debt and cash | $ 1,700 | |||||||
Remaining capacity | $ 4,798 | |||||||
Number of vehicles required to be disposed of under bankruptcy court order | vehicle | 157,262 | |||||||
Minimum cumulative vehicle disposition proceeds amount | $ 2,000 | |||||||
Payments under bankruptcy court order for operating lease | $ 756 | |||||||
Number of payments under bankruptcy court order for operating lease | payment | 9 | |||||||
Monthly payments under bankruptcy court order for operating lease | $ 84 | |||||||
Off airport leases rejected | lease | 278 | |||||||
Airport leases rejected | lease | 26 | |||||||
DIP Credit Agreement | ||||||||
Debt Instrument [Line Items] | ||||||||
Minimum liquidity requirement | $ 275 | |||||||
Non-vehicle | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding principal | 740 | $ 243 | ||||||
Proceeds from issuance of debt | $ 560 | $ 1,440 | ||||||
Number of vehicles required to be disposed of under bankruptcy court order | vehicle | 113,381 | |||||||
Number of vehicles disposed under bankruptcy court order, actual | vehicle | 9,000 | |||||||
Vehicles | ||||||||
Debt Instrument [Line Items] | ||||||||
Proceeds from issuance of debt | $ 1,096 | $ 3,661 | ||||||
Debt instrument, face amount | $ 7,000 | |||||||
Number of vehicles required to be disposed of under bankruptcy court order | vehicle | 121,510 | |||||||
Number of vehicles disposed under bankruptcy court order, actual | vehicle | 14,000 | |||||||
Proposed Plan | ||||||||
Debt Instrument [Line Items] | ||||||||
Global liquidity | $ 2,200 | |||||||
Proceeds from issuance of debt | 3,900 | |||||||
Additional equity purchase amount | $ 1,600 | |||||||
Debtor reorganization equity percentage | 48.20% | 48.20% | ||||||
Number of proofs of claims filed, amount | $ 550 | |||||||
Net proceeds from repayment or recovery, percent | 100.00% | |||||||
Warrant term | 6 years | 6 years | ||||||
Debtor reorganization common stock percentage | 4.00% | 4.00% | ||||||
Reorganization value | $ 6,100 | |||||||
Proposed Plan | Non-vehicle | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding principal | 1,300 | |||||||
Senior Term Loan Facility | Subsequent Event | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | $ 1,300 | |||||||
Senior Term Loan Facility | Subsequent Event | Exit Credit Facilities | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | 1,300 | |||||||
European Fleet Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding principal | 853 | 888 | ||||||
Debt instrument, face amount | € | € 725,000,000 | |||||||
European Fleet Notes | Vehicles | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding principal | 853 | 888 | ||||||
Debtor In Possession Credit Agreement | Non-vehicle | ||||||||
Debt Instrument [Line Items] | ||||||||
DIP credit agreement, amount | 800 | |||||||
Debtor In Possession Credit Agreement | Vehicles | ||||||||
Debt Instrument [Line Items] | ||||||||
DIP credit agreement, amount | $ 400 | |||||||
Senior Secured Superpriority Debtor-in-Possession Credit Agreement | ||||||||
Debt Instrument [Line Items] | ||||||||
Remaining capacity | 900 | |||||||
Unrestricted cash and unrestricted cash equivalents | 812 | |||||||
Senior Secured Superpriority Debtor-in-Possession Credit Agreement | Non-vehicle | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding principal | $ 750 | $ 250 | ||||||
Funding LP Series 2021 A | Revolving Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | $ 350 | |||||||
Proceeds from lines of credit | $ 120 | |||||||
Line of Credit | Revolving Credit Facility | Subsequent Event | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | 1,500 | |||||||
Line of Credit | Revolving Credit Facility | Subsequent Event | Exit Credit Facilities | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | $ 1,500 | |||||||
Supporting Noteholders | Proposed Plan | ||||||||
Debt Instrument [Line Items] | ||||||||
Forbearance agreement, aggregate principal amount of notes, percent | 85.00% | 85.00% | ||||||
Plan Sponsors | Proposed Plan | ||||||||
Debt Instrument [Line Items] | ||||||||
Purchase of common stock | $ 565 | |||||||
Centerbridge Partners, L.P. and Warburg Pincus LLC | Proposed Plan | ||||||||
Debt Instrument [Line Items] | ||||||||
Purchase of preferred stock | $ 385 |
Divestitures (Details)
Divestitures (Details) - USD ($) | Mar. 30, 2021 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Jun. 30, 2019 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Gain from sale of a business | $ (392,000,000) | $ 0 | |||
Proceeds from divestiture of business | 818,000,000 | 0 | |||
Due from related parties | $ 425,000,000 | ||||
The Hertz Corporation | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Gain from sale of a business | $ (392,000,000) | (392,000,000) | 0 | ||
Proceeds from divestiture of business | 818,000,000 | 0 | |||
Due from related parties | $ 65,000,000 | $ 65,000,000 | |||
Donlen Corporation | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Proceeds from divestiture of business | 891,000,000 | ||||
Net book value assets sold | 543,000,000 | ||||
Donlen Corporation | Prepaid Expenses and Other Current Assets | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Due from related parties | $ 45,000,000 | ||||
Other Operating Income (Expense) | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Marketable securities gain | 74,000,000 | ||||
Non-vehicle Capital Assets | Other Operating Income (Expense) | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Proceeds from sale of productive assets | $ 20,000,000 |
Revenue Earning Vehicles (Compo
Revenue Earning Vehicles (Components of Revenue Earning Vehicles) (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Abstract] | ||
Revenue earning vehicles | $ 7,800 | $ 7,492 |
Less accumulated depreciation | (1,520) | (1,467) |
Property subject to available for operating lease excluding assets held for sale | 6,280 | 6,025 |
Revenue earning vehicles, net | 80 | 37 |
Total revenue earning vehicles, net | $ 6,360 | $ 6,062 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets, Net (Details) $ in Millions | Mar. 31, 2021USD ($) |
Finite-Lived Intangible Assets [Line Items] | |
Long-term growth rate | 1.00% |
Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Goodwill, discount rate | 13.00% |
Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Goodwill, discount rate | 15.00% |
Trade Names | |
Finite-Lived Intangible Assets [Line Items] | |
Percentage of fair value in excess of carrying amount | 6.00% |
Indefinite-lived intangible assets, fair value | $ 540 |
Debt (Schedule of Debt) (Detail
Debt (Schedule of Debt) (Details) $ in Millions, $ in Millions | Mar. 31, 2021USD ($)€ / $ | Jan. 27, 2021CAD ($) | Dec. 31, 2020USD ($)€ / $ |
Debt Instrument [Line Items] | |||
Debt: | $ 7,026 | $ 6,267 | |
Debt subject to compromise | 4,511 | 4,443 | |
Non-vehicle | |||
Debt Instrument [Line Items] | |||
Outstanding principal | 740 | 243 | |
Debt: | 740 | 243 | |
Unamortized Debt Issuance Costs and Net (Discount) Premium | (36) | (36) | |
Debt subject to compromise | 4,511 | 4,443 | |
Vehicles | |||
Debt Instrument [Line Items] | |||
Debt: | 6,286 | 6,024 | |
Corporate Debt Securities | Non-vehicle | |||
Debt Instrument [Line Items] | |||
Unamortized debt issuance costs and net (discount) premium | $ (26) | (25) | |
Senior Secured Superpriority Debtor-in-Possession Credit Agreement | Non-vehicle | |||
Debt Instrument [Line Items] | |||
Average interest rate (as a percent) | 8.25% | ||
Outstanding principal | $ 750 | 250 | |
Non-Vehicle Debt | Non-vehicle | |||
Debt Instrument [Line Items] | |||
Average interest rate (as a percent) | 8.25% | ||
Outstanding principal | $ 16 | 18 | |
Senior Term Loan | Non-vehicle | |||
Debt Instrument [Line Items] | |||
Average interest rate (as a percent) | 3.50% | ||
Liabilities subject to compromise | $ 656 | 656 | |
Senior RCF | Non-vehicle | |||
Debt Instrument [Line Items] | |||
Average interest rate (as a percent) | 3.38% | ||
Liabilities subject to compromise | $ 615 | 615 | |
Senior Notes | |||
Debt Instrument [Line Items] | |||
Outstanding principal | $ 2,700 | 2,700 | |
Senior Notes | Non-vehicle | |||
Debt Instrument [Line Items] | |||
Average interest rate (as a percent) | 6.11% | ||
Liabilities subject to compromise | $ 2,700 | 2,700 | |
Senior Second Priority Secured Notes | Non-vehicle | |||
Debt Instrument [Line Items] | |||
Average interest rate (as a percent) | 7.63% | ||
Liabilities subject to compromise | $ 350 | 350 | |
Promissory Notes | Non-vehicle | |||
Debt Instrument [Line Items] | |||
Average interest rate (as a percent) | 7.00% | ||
Liabilities subject to compromise | $ 27 | 27 | |
Alternative Letter of Credit Facility | Non-vehicle | |||
Debt Instrument [Line Items] | |||
Average interest rate (as a percent) | 5.25% | ||
Liabilities subject to compromise | $ 142 | 114 | |
Senior RCF Letter of Credit Facility | Non-vehicle | |||
Debt Instrument [Line Items] | |||
Average interest rate (as a percent) | 5.50% | ||
Liabilities subject to compromise | $ 34 | 17 | |
Letter of Credit Facility | Non-vehicle | |||
Debt Instrument [Line Items] | |||
Average interest rate (as a percent) | 5.50% | ||
Liabilities subject to compromise | $ 23 | 0 | |
Fleet Debt | |||
Debt Instrument [Line Items] | |||
Unamortized debt issuance costs and net (discount) premium | (54) | (63) | |
Debt: | 6,286 | 6,024 | |
Total | Vehicles | |||
Debt Instrument [Line Items] | |||
Outstanding principal | $ 1,665 | 1,940 | |
HVF II Series 2013-A | Vehicles | |||
Debt Instrument [Line Items] | |||
Average interest rate (as a percent) | 3.41% | ||
Outstanding principal | $ 1,665 | 1,940 | |
HVF II U.S. Fleet Variable Medium Term Notes | Vehicles | |||
Debt Instrument [Line Items] | |||
Outstanding principal | $ 2,360 | 2,669 | |
U.S. Fleet Medium Term Notes 2015 Series 3 | Vehicles | |||
Debt Instrument [Line Items] | |||
Average interest rate (as a percent) | 3.78% | ||
Outstanding principal | $ 144 | 163 | |
U.S. Fleet Medium Term Notes 2016 Series 2 | Vehicles | |||
Debt Instrument [Line Items] | |||
Average interest rate (as a percent) | 4.12% | ||
Outstanding principal | $ 232 | 263 | |
U.S. Fleet Medium Term Notes 2016 Series 4 | Vehicles | |||
Debt Instrument [Line Items] | |||
Average interest rate (as a percent) | 3.78% | ||
Outstanding principal | $ 165 | 187 | |
U.S. Fleet Medium Term Notes 2017 Series 1 | Vehicles | |||
Debt Instrument [Line Items] | |||
Average interest rate (as a percent) | 4.03% | ||
Outstanding principal | $ 176 | 199 | |
U.S. Fleet Medium Term Notes 2017 Series 2 | Vehicles | |||
Debt Instrument [Line Items] | |||
Average interest rate (as a percent) | 4.45% | ||
Outstanding principal | $ 145 | 164 | |
U.S. Fleet Medium Term Notes 2018 Series 1 | Vehicles | |||
Debt Instrument [Line Items] | |||
Average interest rate (as a percent) | 3.93% | ||
Outstanding principal | $ 414 | 468 | |
U.S. Fleet Medium Term Notes 2018 Series 2 | Vehicles | |||
Debt Instrument [Line Items] | |||
Average interest rate (as a percent) | 4.40% | ||
Outstanding principal | $ 84 | 94 | |
U.S. Fleet Medium Term Notes 2018 Series 3 | Vehicles | |||
Debt Instrument [Line Items] | |||
Average interest rate (as a percent) | 4.69% | ||
Outstanding principal | $ 84 | 95 | |
U.S. Fleet Medium Term Notes 2019 Series 1 | Vehicles | |||
Debt Instrument [Line Items] | |||
Average interest rate (as a percent) | 4.45% | ||
Outstanding principal | $ 292 | 330 | |
U.S. Fleet Medium Term Notes 2019 Series 2 | Vehicles | |||
Debt Instrument [Line Items] | |||
Average interest rate (as a percent) | 4.05% | ||
Outstanding principal | $ 313 | 354 | |
U.S Fleet Medium Term Notes 2019 Series 3 | Vehicles | |||
Debt Instrument [Line Items] | |||
Average interest rate (as a percent) | 3.30% | ||
Outstanding principal | $ 311 | 352 | |
HVIF U.S. Fleet Medium Term Notes | Vehicles | |||
Debt Instrument [Line Items] | |||
Outstanding principal | $ 881 | 0 | |
HVIF Series 2020-1 | Vehicles | |||
Debt Instrument [Line Items] | |||
Average interest rate (as a percent) | 3.53% | ||
Outstanding principal | $ 881 | 0 | |
Other Fleet Debt | Vehicles | |||
Debt Instrument [Line Items] | |||
Outstanding principal | 1,434 | 1,478 | |
European Fleet Notes | |||
Debt Instrument [Line Items] | |||
Outstanding principal | $ 853 | $ 888 | |
Foreign currency exchange rate (EURO to USD) | € / $ | 1.18 | 1.22 | |
European Fleet Notes | Vehicles | |||
Debt Instrument [Line Items] | |||
Average interest rate (as a percent) | 5.07% | ||
Outstanding principal | $ 853 | $ 888 | |
4.125% Senior Notes due October 2021 | |||
Debt Instrument [Line Items] | |||
Outstanding principal | $ 265 | 276 | |
Interest rate | 4.125% | ||
European Fleet Notes, 5.500%, Due March 2023 | |||
Debt Instrument [Line Items] | |||
Outstanding principal | $ 588 | 612 | |
Interest rate | 5.50% | ||
European Securitization | Vehicles | |||
Debt Instrument [Line Items] | |||
Average interest rate (as a percent) | 1.60% | ||
Outstanding principal | $ 212 | 263 | |
Canadian Securitization | |||
Debt Instrument [Line Items] | |||
Outstanding principal | $ 350 | ||
Canadian Securitization | Vehicles | |||
Debt Instrument [Line Items] | |||
Average interest rate (as a percent) | 2.44% | ||
Outstanding principal | $ 95 | 53 | |
Australian Securitization | Vehicles | |||
Debt Instrument [Line Items] | |||
Average interest rate (as a percent) | 1.66% | ||
Outstanding principal | $ 99 | 97 | |
New Zealand Revolving Credit Facility | Vehicles | |||
Debt Instrument [Line Items] | |||
Average interest rate (as a percent) | 2.95% | ||
Outstanding principal | $ 31 | 35 | |
UK Leveraged Financing | Vehicles | |||
Debt Instrument [Line Items] | |||
Average interest rate (as a percent) | 3.03% | ||
Outstanding principal | $ 91 | 105 | |
Other Vehicle Debt | Vehicles | |||
Debt Instrument [Line Items] | |||
Average interest rate (as a percent) | 3.35% | ||
Outstanding principal | $ 53 | 37 | |
Senior Notes 6.250% Due 2022 | |||
Debt Instrument [Line Items] | |||
Outstanding principal | $ 500 | 500 | |
Interest rate | 6.25% | ||
5.500% Senior Notes due October 2024 | |||
Debt Instrument [Line Items] | |||
Outstanding principal | $ 800 | 800 | |
Interest rate | 5.50% | ||
Senior Notes, 7.125%, Due 2026 | |||
Debt Instrument [Line Items] | |||
Outstanding principal | $ 500 | 500 | |
Interest rate | 7.125% | ||
Senior Notes, 6.00%, Due January 2028 | |||
Debt Instrument [Line Items] | |||
Outstanding principal | $ 900 | $ 900 | |
Interest rate | 6.00% |
Debt (Narrative) (Details)
Debt (Narrative) (Details) £ in Millions, $ in Millions, $ in Millions | Jan. 20, 2021USD ($)payment | Mar. 31, 2021USD ($) | Apr. 30, 2021GBP (£) | Apr. 15, 2021USD ($) | Mar. 31, 2021EUR (€) | Jan. 27, 2021CAD ($) | Dec. 31, 2020USD ($) | |
Debt Instrument [Line Items] | ||||||||
DIP, borrowings outstanding | $ 5,000 | |||||||
Payments under bankruptcy court order for operating lease | $ 756 | |||||||
Number of payments under bankruptcy court order for operating lease | payment | 9 | |||||||
Monthly payments under bankruptcy court order for operating lease | $ 84 | |||||||
Assets | [1] | 16,610 | $ 16,908 | |||||
Liabilities | [1] | 16,320 | 16,815 | |||||
European Fleet Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | € | € 725,000,000 | |||||||
Outstanding principal | 853 | 888 | ||||||
Senior Term Loan Facility | Subsequent Event | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | $ 1,300 | |||||||
Senior Term Loan Facility | Subsequent Event | Exit Credit Facilities | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | 1,300 | |||||||
HIL Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | € | 250,000,000 | |||||||
European ABS Waiver | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding principal | € | € 450,000,000 | |||||||
Canadian Securitization | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding principal | $ 350 | |||||||
Senior RCF | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding standby letters of credit | $ 34 | |||||||
Senior Revolving Credit Facility and Letter of Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum consolidated leverage ratio | 3 | 3 | ||||||
Letter of Credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | $ 688 | |||||||
Vehicles | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | 7,000 | |||||||
Vehicles | European Fleet Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding principal | 853 | 888 | ||||||
Vehicles | Variable Funding Note | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | 3,000 | |||||||
Vehicles | Bridge Financing Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | 4,000 | |||||||
Vehicles | Canadian Securitization | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding principal | 95 | 53 | ||||||
Revolving Credit Facility | Line of Credit and Term Loan | Subsequent Event | Exit Credit Facilities | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | 2,800 | |||||||
Revolving Credit Facility | Line of Credit | Subsequent Event | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | 1,500 | |||||||
Revolving Credit Facility | Line of Credit | Subsequent Event | Exit Credit Facilities | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | $ 1,500 | |||||||
Revolving Credit Facility | UK Financing Facility | Subsequent Event | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | £ | £ 100 | |||||||
Revolving Credit Facility | Senior RCF | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | 194 | |||||||
Alternative Letter of Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | 200 | |||||||
Outstanding standby letters of credit | 142 | |||||||
Letter of Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | 278 | |||||||
Outstanding standby letters of credit | 23 | |||||||
DIP Credit Agreement | ||||||||
Debt Instrument [Line Items] | ||||||||
Minimum liquidity requirement | $ 275 | |||||||
International Fleet Financing No. 2 B.V. | ||||||||
Debt Instrument [Line Items] | ||||||||
Ownership percentage | 25.00% | |||||||
Assets | $ 393 | 464 | ||||||
Liabilities | $ 393 | $ 464 | ||||||
[1] | Hertz Global Holdings, Inc.'s consolidated total assets as of March 31, 2021 and December 31, 2020 include total assets of variable interest entities (“VIEs”) of $513 million and $511 million, respectively, which can only be used to settle obligations of the VIEs. Hertz Global Holdings, Inc.'s consolidated total liabilities as of March 31, 2021 and December 31, 2020 include total liabilities of VIEs of $393 million and $475 million, respectively, for which the creditors of the VIEs have no recourse to Hertz Global Holdings, Inc. See "Special Purpose Entities" in Note 6, "Debt," and "767 Auto Leasing LLC" in Note 13, "Related Party Transactions," for further information. |
Debt (Borrowing Capacity) (Deta
Debt (Borrowing Capacity) (Details) $ in Millions | Mar. 31, 2021USD ($) |
Debt Instrument [Line Items] | |
Remaining capacity | $ 4,798 |
Availability under borrowing base limitation | 943 |
Corporate Debt Securities | |
Debt Instrument [Line Items] | |
Remaining capacity | 900 |
Availability under borrowing base limitation | 900 |
Senior Assets Based Line of Credit Facility | |
Debt Instrument [Line Items] | |
Remaining capacity | 0 |
Availability under borrowing base limitation | 0 |
Senior Secured Superpriority Debtor-in-Possession Credit Agreement | |
Debt Instrument [Line Items] | |
Remaining capacity | 900 |
Availability under borrowing base limitation | 900 |
Letter of Credit | |
Debt Instrument [Line Items] | |
Remaining capacity | 0 |
Availability under borrowing base limitation | 0 |
Alternative Letter of Credit Facility | |
Debt Instrument [Line Items] | |
Remaining capacity | 0 |
Availability under borrowing base limitation | 0 |
Fleet Debt | |
Debt Instrument [Line Items] | |
Remaining capacity | 3,898 |
Availability under borrowing base limitation | 43 |
HVF II U.S. ABS Program | |
Debt Instrument [Line Items] | |
Remaining capacity | 0 |
Availability under borrowing base limitation | 0 |
HVIF Series 2020-1 | |
Debt Instrument [Line Items] | |
Remaining capacity | 3,119 |
Availability under borrowing base limitation | 35 |
European Securitization | |
Debt Instrument [Line Items] | |
Remaining capacity | 494 |
Availability under borrowing base limitation | 4 |
Canadian Securitization | |
Debt Instrument [Line Items] | |
Remaining capacity | 183 |
Availability under borrowing base limitation | 0 |
Australian Securitization | |
Debt Instrument [Line Items] | |
Remaining capacity | 62 |
Availability under borrowing base limitation | 4 |
Us Fleet Financing Facility | |
Debt Instrument [Line Items] | |
Remaining capacity | 19 |
Availability under borrowing base limitation | 0 |
New Zealand Revolving Credit Facility | |
Debt Instrument [Line Items] | |
Remaining capacity | 21 |
Availability under borrowing base limitation | $ 0 |
Leases (Details)
Leases (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2021USD ($)lease | Mar. 31, 2020USD ($) | |
Lessee, Lease, Description [Line Items] | ||
Off airport leases rejected | lease | 278 | |
Airport leases rejected | lease | 26 | |
Operating Lease, Lease Income [Abstract] | ||
Revenue accounted for under Topic 842 | $ 1,249 | $ 1,839 |
Revenue accounted for under Topic 606 | 40 | 84 |
Total revenues | 1,289 | 1,923 |
Restructuring Plan, Impact of COVID-19 | Rent Abatement and Payment Deferrals | ||
Lessee, Lease, Description [Line Items] | ||
Decrease in rent expense from concessions, abatement and payment deferrals | 100 | |
Vehicle Rentals, Operating Lease | ||
Operating Lease, Lease Income [Abstract] | ||
Revenue accounted for under Topic 842 | 1,099 | 1,637 |
Fleet Leasing, Operating Lease | ||
Operating Lease, Lease Income [Abstract] | ||
Revenue accounted for under Topic 842 | 149 | 169 |
Variable, Operating Lease | ||
Operating Lease, Lease Income [Abstract] | ||
Revenue accounted for under Topic 842 | $ 1 | $ 33 |
Restructuring (Details)
Restructuring (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($)employee | |
Employee Severance | |
Restructuring Cost and Reserve [Line Items] | |
Severance Costs | $ | $ 7 |
Restructuring Plan, Impact of COVID-19 | Other Restructuring | International RAC | |
Restructuring Cost and Reserve [Line Items] | |
Number of positions eliminated | employee | 150 |
Income Tax (Provision) Benefit
Income Tax (Provision) Benefit (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Tax Contingency [Line Items] | ||
Effective tax rate (as percent) | 29.00% | 1.00% |
Income tax (provision) benefit | $ (79) | $ 4 |
The Hertz Corporation | ||
Income Tax Contingency [Line Items] | ||
Effective tax rate (as percent) | 29.00% | 1.00% |
Income tax (provision) benefit | $ (79) | $ 3 |
Earnings (Loss) Per Share _ H_3
Earnings (Loss) Per Share – Hertz Global (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Numerator: | ||
Net income (loss) attributable to Hertz Global | $ 190 | $ (356) |
Denominator: | ||
Basic (in shares) | 156 | 142 |
Dilutive stock options, RSUs and PSUs | 1 | 0 |
Diluted weighted-average shares outstanding | 157 | 142 |
Earnings (loss) per share: | ||
Basic earnings (loss) per share (in dollars per share) | $ 1.22 | $ (2.50) |
Diluted earnings (loss) per share (in dollars per share) | $ 1.21 | $ (2.50) |
Antidilutive stock options, RSUs and PSUs | ||
Denominator: | ||
Antidilutive stock options, RSUs, PSUs and PSAs | 1 | 2 |
Fair Value Measurements (Cash a
Fair Value Measurements (Cash and Cash Equivalents and Investments) (Details) - Fair Value, Measurements, Recurring - Cash equivalents - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $ 1,567 | $ 723 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 1,567 | 723 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $ 0 | $ 0 |
Fair Value Measurements (Financ
Fair Value Measurements (Financial Instruments) (Details) - Fair Value, Measurements, Recurring - Level 2 - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Fair Value of Financial Instruments [Abstract] | ||
Nominal Unpaid Principal Balance | $ 11,653 | $ 10,834 |
Aggregate Fair Value | 11,570 | 9,403 |
Non-Vehicle Debt | ||
Fair Value of Financial Instruments [Abstract] | ||
Nominal Unpaid Principal Balance | 5,313 | 4,747 |
Aggregate Fair Value | 5,316 | 3,382 |
Vehicle Debt | ||
Fair Value of Financial Instruments [Abstract] | ||
Nominal Unpaid Principal Balance | 6,340 | 6,087 |
Aggregate Fair Value | $ 6,254 | $ 6,021 |
Contingencies and Off-Balance_2
Contingencies and Off-Balance Sheet Commitments (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Feb. 28, 2021 | Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Self-insured liabilities | $ 470,000 | $ 488,000 | |
Bankruptcy claims, amount paid to settle claims | $ 250 | ||
Net proceeds from repayment or recovery, percent | 15.00% |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 3 Months Ended | ||||
Mar. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | May 23, 2020 | Jun. 30, 2019 | |
Related Party Transaction [Line Items] | |||||
Due from related parties | $ 425,000,000 | ||||
Master Loan Agreement | |||||
Related Party Transaction [Line Items] | |||||
Due from related parties | $ 133,000,000 | ||||
Tax Related Liability | |||||
Related Party Transaction [Line Items] | |||||
Due from related parties | $ 65,000,000 | $ 65,000,000 | |||
Master Loan Agreement, Due May 2021 | |||||
Related Party Transaction [Line Items] | |||||
Due from related parties | $ 1,000,000 | 1,000,000 | $ 25,000,000 | ||
767 Auto Leasing, LLC | |||||
Related Party Transaction [Line Items] | |||||
Term of lease contract | 22 months | ||||
Lease, renewal term | 6 months | ||||
767 Auto Leasing, LLC | Master Motor Vehicle Lease and Management Agreement | |||||
Related Party Transaction [Line Items] | |||||
Operating income or loss, percent | 25.00% | ||||
The Hertz Corporation | |||||
Related Party Transaction [Line Items] | |||||
Due from related parties | $ 65,000,000 | $ 65,000,000 | |||
The Hertz Corporation | 767 Auto Leasing, LLC | |||||
Related Party Transaction [Line Items] | |||||
Contributions from (distributions to) noncontrolling interests | $ (10,000,000) |
Segment Information (Details)
Segment Information (Details) $ in Millions | Jun. 18, 2020USD ($) | Mar. 31, 2021USD ($)segment | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($) | |
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||
Number of reportable segments | segment | 3 | ||||
Revenues | $ 1,289 | $ 1,923 | |||
Depreciation of revenue earning vehicles and lease charges | 243 | 677 | |||
Adjusted EBITDA: | 2 | (243) | |||
Total assets | [1] | 16,610 | $ 16,908 | ||
Assets held for sale | 0 | 1,811 | |||
Income (loss) before income taxes | 268 | (361) | |||
Liabilities subject to compromise | 4,978 | 4,965 | |||
Restructuring and restructuring related charges | Pension Plan | |||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||
Liabilities subject to compromise | 24 | 24 | |||
ATM Program | |||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||
Stock issuance, net | $ 28 | ||||
Restructuring and restructuring related charges | |||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||
Income (loss) before income taxes | (12) | (7) | |||
Information technology and finance transformation costs | |||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||
Income (loss) before income taxes | (6) | (17) | |||
Reorganization items, net | |||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||
Income (loss) before income taxes | (42) | 0 | |||
Pre-reorganization charges and non-debtor financing charges | |||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||
Income (loss) before income taxes | (23) | 0 | |||
Gain from divestiture | |||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||
Income (loss) before income taxes | 392 | 0 | |||
Other | |||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||
Income (loss) before income taxes | 83 | 25 | |||
Operating Segments | |||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||
Adjusted EBITDA: | 31 | (220) | |||
Operating Segments | U.S. Rental Car | |||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||
Revenues | 946 | 1,381 | |||
Depreciation of revenue earning vehicles and lease charges | 205 | 463 | |||
Adjusted EBITDA: | 24 | (199) | |||
Total assets | 11,509 | 11,042 | |||
Operating Segments | International Rental Car | |||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||
Revenues | 207 | 368 | |||
Depreciation of revenue earning vehicles and lease charges | 38 | 89 | |||
Adjusted EBITDA: | (6) | (45) | |||
Total assets | 2,940 | 2,956 | |||
Operating Segments | All Other Operations | |||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||
Revenues | 136 | 174 | |||
Depreciation of revenue earning vehicles and lease charges | 0 | 125 | |||
Adjusted EBITDA: | 13 | 24 | |||
Total assets | 1 | 1,818 | |||
Corporate, Non-Segment | |||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||
Adjusted EBITDA: | (29) | (23) | |||
Total assets | 2,160 | 1,092 | |||
The Hertz Corporation | |||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||
Revenues | 1,289 | 1,923 | |||
Depreciation of revenue earning vehicles and lease charges | 243 | 677 | |||
Adjusted EBITDA: | 2 | (243) | |||
Total assets | [2] | 16,582 | 16,880 | ||
Assets held for sale | 0 | 1,811 | |||
Income (loss) before income taxes | 268 | (359) | |||
Liabilities subject to compromise | 5,043 | 5,030 | |||
Gain on sale of non-vehicle capital assets | 1 | 21 | |||
Unrealized gain (loss) on derivatives | 13 | ||||
The Hertz Corporation | Donlen Corporation | |||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||
Assets held for sale | 1,800 | ||||
The Hertz Corporation | Variable Interest Entity, Primary Beneficiary | |||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||
Total assets | 513 | 511 | |||
The Hertz Corporation | Debt-related charges | |||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||
Income (loss) before income taxes | (28) | (9) | |||
The Hertz Corporation | Restructuring and restructuring related charges | |||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||
Income (loss) before income taxes | (12) | (7) | |||
The Hertz Corporation | Information technology and finance transformation costs | |||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||
Income (loss) before income taxes | (6) | (17) | |||
The Hertz Corporation | Reorganization items, net | |||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||
Income (loss) before income taxes | (42) | 0 | |||
The Hertz Corporation | Pre-reorganization charges and non-debtor financing charges | |||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||
Income (loss) before income taxes | (23) | 0 | |||
The Hertz Corporation | Gain from divestiture | |||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||
Income (loss) before income taxes | 392 | 0 | |||
The Hertz Corporation | Other | |||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||
Income (loss) before income taxes | 83 | 25 | |||
The Hertz Corporation | Other | Donlen Corporation | |||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||
Income (loss) before income taxes | 100 | ||||
The Hertz Corporation | Operating Segments | |||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||
Adjusted EBITDA: | 31 | (220) | |||
The Hertz Corporation | Operating Segments | U.S. Rental Car | |||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||
Adjusted EBITDA: | 24 | (199) | |||
The Hertz Corporation | Operating Segments | International Rental Car | |||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||
Adjusted EBITDA: | (6) | (45) | |||
The Hertz Corporation | Operating Segments | All Other Operations | |||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||
Adjusted EBITDA: | 13 | 24 | |||
The Hertz Corporation | Corporate, Non-Segment | |||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||
Adjusted EBITDA: | (29) | (23) | |||
Total assets | $ (28) | $ (28) | |||
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 | Non-vehicle deprecation and amortization | |||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||
Income (loss) before income taxes | $ (54) | (53) | |||
Non-vehicle | Debt-related charges | |||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||
Income (loss) before income taxes | (44) | (57) | |||
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 | 20 | ||||
Non-vehicle | The Hertz Corporation | Non-vehicle deprecation and amortization | |||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||
Income (loss) before income taxes | (54) | (53) | |||
Non-vehicle | The Hertz Corporation | Debt-related charges | |||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||
Income (loss) before income taxes | (44) | (55) | |||
Vehicles | Debt-related charges | |||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | |||||
Income (loss) before income taxes | $ (28) | $ (9) | |||
[1] | Hertz Global Holdings, Inc.'s consolidated total assets as of March 31, 2021 and December 31, 2020 include total assets of variable interest entities (“VIEs”) of $513 million and $511 million, respectively, which can only be used to settle obligations of the VIEs. Hertz Global Holdings, Inc.'s consolidated total liabilities as of March 31, 2021 and December 31, 2020 include total liabilities of VIEs of $393 million and $475 million, respectively, for which the creditors of the VIEs have no recourse to Hertz Global Holdings, Inc. See "Special Purpose Entities" in Note 6, "Debt," and "767 Auto Leasing LLC" in Note 13, "Related Party Transactions," for further information. | ||||
[2] | The Hertz Corporation's consolidated total assets as of March 31, 2021 and December 31, 2020 include total assets of VIEs of $513 million and $511 million, respectively, which can only be used to settle obligations of the VIEs. The Hertz Corporation's consolidated total liabilities as of March 31, 2021 and December 31, 2020 include total liabilities of VIEs of $393 million and $475 million, respectively, for which the creditors of the VIEs have no recourse to The Hertz Corporation. See "Special Purpose Entities" in Note 6, "Debt," and "767 Auto Leasing LLC" in Note 13, "Related Party Transactions," for further information. |
Liabilities Subject to Compro_3
Liabilities Subject to Compromise (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2019 |
Fresh-Start Adjustment [Line Items] | |||
Accounts payable | $ 239,000,000 | $ 267,000,000 | |
Accrued liabilities | 139,000,000 | 166,000,000 | |
Accrued taxes, net | 16,000,000 | 19,000,000 | |
Accrued interest on debt subject to compromise | 73,000,000 | 70,000,000 | |
Debt subject to compromise | 4,511,000,000 | 4,443,000,000 | |
Liabilities subject to compromise, Total | 4,978,000,000 | 4,965,000,000 | |
Due from related parties | $ 425,000,000 | ||
Restructuring and restructuring related charges | Pension Plan | |||
Fresh-Start Adjustment [Line Items] | |||
Liabilities subject to compromise, Total | 24,000,000 | 24,000,000 | |
The Hertz Corporation | |||
Fresh-Start Adjustment [Line Items] | |||
Liabilities subject to compromise, Total | 5,043,000,000 | 5,030,000,000 | |
Due from related parties | $ 65,000,000 | $ 65,000,000 |
Reorganization Items, Net (Deta
Reorganization Items, Net (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Fresh-Start Adjustment [Line Items] | |||
Reorganization items, net | $ 42 | $ 0 | $ 175 |
Accrued professional fees | 57 | ||
Payment of professional fees | 15 | ||
Accrued Liabilities | |||
Fresh-Start Adjustment [Line Items] | |||
Reorganization items, net | 57 | 46 | |
Payment of professional fees | 58 | 102 | |
Accounts Payable | |||
Fresh-Start Adjustment [Line Items] | |||
Reorganization items, net | $ 7 | $ 19 |
Condensed Combined Debtor in _3
Condensed Combined Debtor in Possession Financial Information (Balance Sheet) (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | |
ASSETS | |||||
Cash and cash equivalents | $ 1,087,000,000 | $ 1,096,000,000 | |||
Restricted cash and cash equivalents: | 1,353,000,000 | 411,000,000 | |||
Total cash, cash equivalents, restricted cash and restricted cash equivalents | 2,440,000,000 | 1,507,000,000 | $ 1,409,000,000 | ||
Receivables, net | 793,000,000 | 777,000,000 | |||
Due from affiliates | $ 425,000,000 | ||||
Prepaid expenses and other assets | 786,000,000 | 373,000,000 | |||
Revenue earning vehicles, net | 7,919,000,000 | 7,540,000,000 | |||
Property and equipment, net | 637,000,000 | 666,000,000 | |||
Operating lease right-of-use assets | 1,580,000,000 | 1,675,000,000 | |||
Intangible assets, net | 2,969,000,000 | 2,992,000,000 | |||
Goodwill | 1,045,000,000 | 1,045,000,000 | |||
Assets held for sale | 0 | 1,811,000,000 | |||
Total assets | [1] | 16,610,000,000 | 16,908,000,000 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||
Total accounts payable | 531,000,000 | 418,000,000 | |||
Accrued liabilities | 824,000,000 | 759,000,000 | |||
Accrued taxes, net | 161,000,000 | 121,000,000 | |||
Debt | 7,026,000,000 | 6,267,000,000 | |||
Operating lease liabilities | 1,541,000,000 | 1,636,000,000 | |||
Self-insured liabilities | 470,000,000 | 488,000,000 | |||
Deferred income taxes, net | 789,000,000 | 730,000,000 | |||
Total liabilities not subject to compromise | 11,342,000,000 | 10,419,000,000 | |||
Liabilities subject to compromise | 4,978,000,000 | 4,965,000,000 | |||
Liabilities held for sale | 0 | 1,431,000,000 | |||
Total liabilities | [1] | 16,320,000,000 | 16,815,000,000 | ||
Total liabilities and stockholders' equity | 16,610,000,000 | 16,908,000,000 | |||
Hertz Global Holdings and Subsidiaries in Bankruptcy Proceedings | |||||
ASSETS | |||||
Cash and cash equivalents | 534,000,000 | 492,000,000 | |||
Restricted cash and cash equivalents: | 1,179,000,000 | 305,000,000 | |||
Total cash, cash equivalents, restricted cash and restricted cash equivalents | 1,713,000,000 | 797,000,000 | |||
Receivables, net | 404,000,000 | 388,000,000 | |||
Due from affiliates | 51,607,000,000 | 51,638,000,000 | |||
Prepaid expenses and other assets | 265,000,000 | 183,000,000 | |||
Revenue earning vehicles, net | 5,000,000 | 37,000,000 | |||
Property and equipment, net | 530,000,000 | 549,000,000 | |||
Operating lease right-of-use assets | 1,353,000,000 | 1,424,000,000 | |||
Investment in subsidiaries, net | 4,893,000,000 | 4,527,000,000 | |||
Intangible assets, net | 2,966,000,000 | 2,988,000,000 | |||
Goodwill | 488,000,000 | 488,000,000 | |||
Assets held for sale | 0 | 173,000,000 | |||
Total assets | 64,224,000,000 | 63,192,000,000 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||
Total accounts payable | 219,000,000 | 200,000,000 | |||
Accrued liabilities | 477,000,000 | 412,000,000 | |||
Accrued taxes, net | 84,000,000 | 48,000,000 | |||
Debt | 740,000,000 | 242,000,000 | |||
Operating lease liabilities | 1,314,000,000 | 1,385,000,000 | |||
Self-insured liabilities | 243,000,000 | 251,000,000 | |||
Deferred income taxes, net | 1,208,000,000 | 887,000,000 | |||
Total liabilities not subject to compromise | 4,285,000,000 | 3,425,000,000 | |||
Liabilities subject to compromise | 59,674,000,000 | 59,637,000,000 | |||
Liabilities held for sale | 0 | 74,000,000 | |||
Total liabilities | 63,959,000,000 | 63,136,000,000 | |||
Total equity attributable to the Debtors | 265,000,000 | 56,000,000 | |||
Total liabilities and stockholders' equity | $ 64,224,000,000 | $ 63,192,000,000 | |||
[1] | Hertz Global Holdings, Inc.'s consolidated total assets as of March 31, 2021 and December 31, 2020 include total assets of variable interest entities (“VIEs”) of $513 million and $511 million, respectively, which can only be used to settle obligations of the VIEs. Hertz Global Holdings, Inc.'s consolidated total liabilities as of March 31, 2021 and December 31, 2020 include total liabilities of VIEs of $393 million and $475 million, respectively, for which the creditors of the VIEs have no recourse to Hertz Global Holdings, Inc. See "Special Purpose Entities" in Note 6, "Debt," and "767 Auto Leasing LLC" in Note 13, "Related Party Transactions," for further information. |
Condensed Combined Debtor in _4
Condensed Combined Debtor in Possession Financial Information (Statement of Operations and Comprehensive Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Condensed Financial Statements, Captions [Line Items] | |||
Revenues | $ 1,289 | $ 1,923 | |
Expenses: | |||
Direct vehicle and operating | 827 | 1,241 | |
Depreciation of revenue earning vehicles and lease charges | 243 | 677 | |
Selling, general and administrative | 156 | 208 | |
Interest (income) expense, net | (148) | (175) | |
Reorganization items, net | 42 | 0 | $ 175 |
(Gain) from the sale of a business | 392 | 0 | |
Total expenses | 1,021 | 2,284 | |
Income (loss) before income taxes | 268 | (361) | |
Income tax (provision) benefit | (79) | 4 | |
Net income (loss) | 189 | (357) | |
Other comprehensive income (loss) | 17 | (39) | |
Comprehensive income (loss) attributable to Hertz Global | 207 | $ (395) | |
Hertz Global Holdings and Subsidiaries in Bankruptcy Proceedings | |||
Condensed Financial Statements, Captions [Line Items] | |||
Revenues | 942 | ||
Expenses: | |||
Direct vehicle and operating | 687 | ||
Depreciation of revenue earning vehicles and lease charges | 322 | ||
Selling, general and administrative | 117 | ||
Interest (income) expense, net | 34 | ||
Other (income) expense, net | 18 | ||
Reorganization items, net | 42 | ||
(Gain) from the sale of a business | (392) | ||
Total expenses | 828 | ||
Income (loss) before income taxes | 114 | ||
Income tax (provision) benefit | (335) | ||
Equity in earnings (losses) of non-debtor entities | 411 | ||
Net income (loss) | 190 | ||
Other comprehensive income (loss) | 17 | ||
Comprehensive income (loss) attributable to Hertz Global | $ 207 |
Condensed Combined Debtor in _5
Condensed Combined Debtor in Possession Financial Information (Statement of Cash Flows) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Condensed Financial Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | $ 200 | $ 449 |
Cash flows from investing activities: | ||
Revenue earning vehicles expenditures | (1,517) | (4,346) |
Proceeds from disposal of revenue earning vehicles | 686 | 2,212 |
Non-vehicle capital asset expenditures | (9) | (59) |
Proceeds from non-vehicle capital assets disposed of or to be disposed of | 4 | 23 |
Net cash provided by (used in) investing activities | (18) | (2,097) |
Cash flows from financing activities: | ||
Net cash provided by (used in) financing activities | 692 | 1,701 |
Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents during the period | 862 | 49 |
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period | 1,507 | |
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period | 2,440 | 1,409 |
Non-vehicle | ||
Cash flows from financing activities: | ||
Proceeds from issuance of debt | 560 | 1,440 |
Repayments of debt | (1) | $ (851) |
Hertz Global Holdings and Subsidiaries in Bankruptcy Proceedings | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | (53) | |
Cash flows from investing activities: | ||
Revenue earning vehicles expenditures | (10) | |
Proceeds from disposal of revenue earning vehicles | (25) | |
Non-vehicle capital asset expenditures | (8) | |
Proceeds from non-vehicle capital assets disposed of or to be disposed of | 3 | |
Proceeds from the sale of business, net of cash sold | 818 | |
Capital contributions to non-debtor entities | (411) | |
Return of capital from non-debtor entities | 43 | |
Net cash provided by (used in) investing activities | 410 | |
Cash flows from financing activities: | ||
Net cash provided by (used in) financing activities | 559 | |
Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents during the period | 916 | |
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period | 797 | |
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period | 1,713 | |
Hertz Global Holdings and Subsidiaries in Bankruptcy Proceedings | Non-vehicle | ||
Cash flows from financing activities: | ||
Proceeds from issuance of debt | 560 | |
Repayments of debt | $ (1) |
Uncategorized Items - htz-20210
Label | Element | Value | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Including Amounts Held For Sale | htz_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingAmountsHeldForSale | $ 1,578,000,000 | [1] |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Including Amounts Held For Sale | htz_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingAmountsHeldForSale | 1,360,000,000 | [1] |
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | us-gaap_MinorityInterestDecreaseFromDistributionsToNoncontrollingInterestHolders | 11,000,000 | |
The Hertz Corporation [Member] | |||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Including Amounts Held For Sale | htz_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingAmountsHeldForSale | 1,550,000,000 | [2] |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Including Amounts Held For Sale | htz_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingAmountsHeldForSale | 1,360,000,000 | [2] |
Noncontrolling Interest [Member] | |||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | us-gaap_MinorityInterestDecreaseFromDistributionsToNoncontrollingInterestHolders | $ 11,000,000 | |
[1] | Amounts include cash and cash equivalents and restricted cash and cash equivalents which are held for sale at December 31, 2020, as disclosed in Note 3, "Divestitures." | ||
[2] | Amounts include cash and cash equivalents and restricted cash and cash equivalents which are held for sale at December 31, 2020, as disclosed in Note 3, "Divestitures." |