Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2022 | Jul. 21, 2022 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-37665 | |
Entity Registrant Name | HERTZ GLOBAL HOLDINGS, INC | |
Entity Incorporation, State or Country Code | DE | |
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 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Bankruptcy Proceedings, Reporting Current | true | |
Entity Common Stock, Shares Outstanding | 360,326,081 | |
Entity Central Index Key | 0001657853 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Common Stock | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common Stock | |
Trading Symbol | HTZ | |
Security Exchange Name | NASDAQ | |
Warrants | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Warrants to purchase common stock | |
Trading Symbol | HTZWW | |
Security Exchange Name | NASDAQ | |
The Hertz Corporation | ||
Entity Information [Line Items] | ||
Entity File Number | 001-07541 | |
Entity Registrant Name | THE HERTZ CORPORATION | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 13-1938568 | |
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 | |
Entity Current Reporting Status | No | |
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 | 2022 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
HGH - CONDENSED CONSOLIDATED BA
HGH - CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 | |
ASSETS | |||
Cash and cash equivalents | $ 1,041 | $ 2,258 | |
Total restricted cash and cash equivalents | 522 | 393 | |
Total cash and cash equivalents and restricted cash and cash equivalents | 1,563 | 2,651 | |
Receivables | 975 | 758 | |
Prepaid expenses and other assets | 1,094 | 1,017 | |
Revenue earning vehicles: | |||
Vehicles | 13,962 | 10,836 | |
Less: accumulated depreciation | (1,632) | (1,610) | |
Total revenue earning vehicles, net | 12,330 | 9,226 | |
Property and equipment, net | 605 | 608 | |
Operating lease right-of-use assets | 1,562 | 1,566 | |
Intangible assets, net | 2,893 | 2,912 | |
Goodwill | 1,044 | 1,045 | |
Total assets | [1] | 22,066 | 19,783 |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Accounts payable | 659 | 572 | |
Accrued liabilities | 1,048 | 863 | |
Accrued taxes, net | 206 | 157 | |
Debt | 13,392 | 10,907 | |
Public Warrants | 811 | 1,324 | |
Operating lease liabilities | 1,493 | 1,510 | |
Self-insured liabilities | 470 | 463 | |
Deferred income taxes, net | 1,258 | 1,010 | |
Total liabilities | [1] | 19,337 | 16,806 |
Commitments and contingencies | |||
Stockholders' equity: | |||
Preferred stock, $0.01 par value, no shares issued and outstanding | 0 | 0 | |
#REF! | 5 | 5 | |
#REF! | (2,321) | (708) | |
Additional paid-in capital | 6,274 | 6,209 | |
Retained earnings (Accumulated deficit) | (949) | (2,315) | |
Accumulated other comprehensive income (loss) | (280) | (214) | |
Total stockholders' equity | 2,729 | 2,977 | |
Total liabilities and stockholders' equity | 22,066 | 19,783 | |
Vehicles | |||
ASSETS | |||
Total restricted cash and cash equivalents | 221 | 77 | |
Receivables | 136 | 62 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Accounts payable | 182 | 56 | |
Debt | 10,411 | 7,921 | |
Non-vehicle | |||
ASSETS | |||
Total restricted cash and cash equivalents | 301 | 316 | |
Receivables | 839 | 696 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Accounts payable | 477 | 516 | |
Debt | 2,981 | 2,986 | |
The Hertz Corporation | |||
ASSETS | |||
Cash and cash equivalents | 1,041 | 2,257 | |
Total restricted cash and cash equivalents | 522 | 393 | |
Total cash and cash equivalents and restricted cash and cash equivalents | 1,563 | 2,650 | |
Receivables | 975 | 757 | |
Prepaid expenses and other assets | 1,093 | 1,016 | |
Revenue earning vehicles: | |||
Vehicles | 13,962 | 10,836 | |
Less: accumulated depreciation | (1,632) | (1,610) | |
Total revenue earning vehicles, net | 12,330 | 9,226 | |
Property and equipment, net | 605 | 608 | |
Operating lease right-of-use assets | 1,562 | 1,566 | |
Intangible assets, net | 2,893 | 2,912 | |
Goodwill | 1,044 | 1,045 | |
Total assets | [2] | 22,065 | 19,780 |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Accounts payable | 659 | 572 | |
Accrued liabilities | 1,027 | 809 | |
Accrued taxes, net | 206 | 157 | |
Debt | 13,392 | 10,907 | |
Operating lease liabilities | 1,493 | 1,510 | |
Self-insured liabilities | 470 | 463 | |
Deferred income taxes, net | 1,262 | 1,012 | |
Total liabilities | [2] | 18,509 | 15,430 |
Commitments and contingencies | |||
Stockholders' equity: | |||
#REF! | 0 | 0 | |
Additional paid-in capital | 5,606 | 7,190 | |
Retained earnings (Accumulated deficit) | (1,770) | (2,626) | |
Accumulated other comprehensive income (loss) | (280) | (214) | |
Total stockholders' equity | 3,556 | 4,350 | |
Total liabilities and stockholders' equity | 22,065 | 19,780 | |
The Hertz Corporation | Variable Interest Entity, Primary Beneficiary | |||
Revenue earning vehicles: | |||
Total assets | 838 | 734 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Total liabilities | 837 | 733 | |
The Hertz Corporation | Vehicles | |||
ASSETS | |||
Total restricted cash and cash equivalents | 221 | 77 | |
Receivables | 136 | 62 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Accounts payable | 182 | 56 | |
Debt | 10,411 | 7,921 | |
The Hertz Corporation | Non-vehicle | |||
ASSETS | |||
Total restricted cash and cash equivalents | 301 | 316 | |
Receivables | 839 | 695 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Accounts payable | 477 | 516 | |
Debt | $ 2,981 | $ 2,986 | |
[1]Hertz Global Holdings, Inc.'s consolidated total assets as of June 30, 2022 and December 31, 2021 include total assets of variable interest entities (“VIEs”) of $838 million and $734 million, respectively, which can only be used to settle obligations of the VIEs. Hertz Global Holdings, Inc.'s consolidated total liabilities as of June 30, 2022 and December 31, 2021 include total liabilities of VIEs of $837 million and $733 million, respectively, for which the creditors of the VIEs have no recourse to Hertz Global Holdings, Inc. See "Pledges Related to Vehicle Financing" in Note 5, "Debt," for further information.[2]The Hertz Corporation's consolidated total assets as of June 30, 2022 and December 31, 2021 include total assets of VIEs of $838 million and $734 million, respectively, which can only be used to settle obligations of the VIEs. The Hertz Corporation's consolidated total liabilities as of June 30, 2022 and December 31, 2021 include total liabilities of VIEs of $837 million and $733 million, respectively, for which the creditors of the VIEs have no recourse to The Hertz Corporation. See "Pledges Related to Vehicle Financing" in Note 5, "Debt," for further information. |
HGH - CONDENSED CONSOLIDATED _2
HGH - CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
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 (in shares) | 477,722,177 | 477,233,278 |
Common stock, shares outstanding (in shares) | 368,386,372 | 449,782,424 |
Treasury stock, shares repurchased (in shares) | 109,335,805 | 27,450,854 |
Non-vehicle | ||
Accounts receivable, allowance for credit loss | $ 42 | $ 48 |
The Hertz Corporation | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares issued (in shares) | 100 | 100 |
Common stock, shares outstanding (in shares) | 100 | 100 |
The Hertz Corporation | Non-vehicle | ||
Accounts receivable, allowance for credit loss | $ 42 | $ 48 |
THC - CONDENSED CONSOLIDATED BA
THC - CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 | |
ASSETS | |||
Cash and cash equivalents | $ 1,041 | $ 2,258 | |
Total restricted cash and cash equivalents | 522 | 393 | |
Total cash and cash equivalents and restricted cash and cash equivalents | 1,563 | 2,651 | |
Receivables | 975 | 758 | |
Prepaid expenses and other assets | 1,094 | 1,017 | |
Revenue earning vehicles: | |||
Revenue earning vehicles, net | 13,962 | 10,836 | |
Less: accumulated depreciation | (1,632) | (1,610) | |
Total revenue earning vehicles, net | 12,330 | 9,226 | |
Property and equipment, net | 605 | 608 | |
Operating lease right-of-use assets | 1,562 | 1,566 | |
Intangible assets, net | 2,893 | 2,912 | |
Goodwill | 1,044 | 1,045 | |
Total assets | [1] | 22,066 | 19,783 |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Accounts payable | 659 | 572 | |
Accrued liabilities | 1,048 | 863 | |
Accrued taxes, net | 206 | 157 | |
Debt | 13,392 | 10,907 | |
Operating lease liabilities | 1,493 | 1,510 | |
Self-insured liabilities | 470 | 463 | |
Deferred income taxes, net | 1,258 | 1,010 | |
Total liabilities | [1] | 19,337 | 16,806 |
Commitments and contingencies | |||
Stockholders' equity: | |||
#REF! | 5 | 5 | |
Additional paid-in capital | 6,274 | 6,209 | |
Retained earnings (Accumulated deficit) | (949) | (2,315) | |
Accumulated other comprehensive income (loss) | (280) | (214) | |
Total stockholders' equity | 2,729 | 2,977 | |
Total liabilities and stockholders' equity | 22,066 | 19,783 | |
Vehicles | |||
ASSETS | |||
Total restricted cash and cash equivalents | 221 | 77 | |
Receivables | 136 | 62 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Accounts payable | 182 | 56 | |
Debt | 10,411 | 7,921 | |
Non-vehicle | |||
ASSETS | |||
Total restricted cash and cash equivalents | 301 | 316 | |
Receivables | 839 | 696 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Accounts payable | 477 | 516 | |
Debt | 2,981 | 2,986 | |
The Hertz Corporation | |||
ASSETS | |||
Cash and cash equivalents | 1,041 | 2,257 | |
Total restricted cash and cash equivalents | 522 | 393 | |
Total cash and cash equivalents and restricted cash and cash equivalents | 1,563 | 2,650 | |
Receivables | 975 | 757 | |
Prepaid expenses and other assets | 1,093 | 1,016 | |
Revenue earning vehicles: | |||
Revenue earning vehicles, net | 13,962 | 10,836 | |
Less: accumulated depreciation | (1,632) | (1,610) | |
Total revenue earning vehicles, net | 12,330 | 9,226 | |
Property and equipment, net | 605 | 608 | |
Operating lease right-of-use assets | 1,562 | 1,566 | |
Intangible assets, net | 2,893 | 2,912 | |
Goodwill | 1,044 | 1,045 | |
Total assets | [2] | 22,065 | 19,780 |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Accounts payable | 659 | 572 | |
Accrued liabilities | 1,027 | 809 | |
Accrued taxes, net | 206 | 157 | |
Debt | 13,392 | 10,907 | |
Operating lease liabilities | 1,493 | 1,510 | |
Self-insured liabilities | 470 | 463 | |
Deferred income taxes, net | 1,262 | 1,012 | |
Total liabilities | [2] | 18,509 | 15,430 |
Commitments and contingencies | |||
Stockholders' equity: | |||
#REF! | 0 | 0 | |
Additional paid-in capital | 5,606 | 7,190 | |
Retained earnings (Accumulated deficit) | (1,770) | (2,626) | |
Accumulated other comprehensive income (loss) | (280) | (214) | |
Total stockholders' equity | 3,556 | 4,350 | |
Total liabilities and stockholders' equity | 22,065 | 19,780 | |
The Hertz Corporation | Variable Interest Entity, Primary Beneficiary | |||
Revenue earning vehicles: | |||
Total assets | 838 | 734 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Total liabilities | 837 | 733 | |
The Hertz Corporation | Vehicles | |||
ASSETS | |||
Total restricted cash and cash equivalents | 221 | 77 | |
Receivables | 136 | 62 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Accounts payable | 182 | 56 | |
Debt | 10,411 | 7,921 | |
The Hertz Corporation | Non-vehicle | |||
ASSETS | |||
Total restricted cash and cash equivalents | 301 | 316 | |
Receivables | 839 | 695 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Accounts payable | 477 | 516 | |
Debt | $ 2,981 | $ 2,986 | |
[1]Hertz Global Holdings, Inc.'s consolidated total assets as of June 30, 2022 and December 31, 2021 include total assets of variable interest entities (“VIEs”) of $838 million and $734 million, respectively, which can only be used to settle obligations of the VIEs. Hertz Global Holdings, Inc.'s consolidated total liabilities as of June 30, 2022 and December 31, 2021 include total liabilities of VIEs of $837 million and $733 million, respectively, for which the creditors of the VIEs have no recourse to Hertz Global Holdings, Inc. See "Pledges Related to Vehicle Financing" in Note 5, "Debt," for further information.[2]The Hertz Corporation's consolidated total assets as of June 30, 2022 and December 31, 2021 include total assets of VIEs of $838 million and $734 million, respectively, which can only be used to settle obligations of the VIEs. The Hertz Corporation's consolidated total liabilities as of June 30, 2022 and December 31, 2021 include total liabilities of VIEs of $837 million and $733 million, respectively, for which the creditors of the VIEs have no recourse to The Hertz Corporation. See "Pledges Related to Vehicle Financing" in Note 5, "Debt," for further information. |
THC - CONDENSED CONSOLIDATED _2
THC - CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares issued (in shares) | 477,722,177 | 477,233,278 |
Common stock, shares outstanding (in shares) | 368,386,372 | 449,782,424 |
Non-vehicle | ||
Accounts receivable, allowance for credit loss | $ 42 | $ 48 |
The Hertz Corporation | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 3,000 | 3,000 |
Common stock, shares issued (in shares) | 100 | 100 |
Common stock, shares outstanding (in shares) | 100 | 100 |
The Hertz Corporation | Non-vehicle | ||
Accounts receivable, allowance for credit loss | $ 42 | $ 48 |
HGH - CONDENSED CONSOLIDATED ST
HGH - CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Revenues: | ||||||
Revenues | $ 2,344 | $ 1,873 | $ 4,154 | $ 3,161 | ||
Expenses: | ||||||
Direct vehicle and operating | 1,199 | 946 | 2,252 | 1,724 | ||
Depreciation of revenue earning vehicles and lease charges, net | 106 | 116 | 47 | 359 | ||
Selling, general and administrative | 257 | 172 | 492 | 321 | ||
Total interest expense, net | 86 | 189 | 130 | 337 | ||
Other (income) expense, net | 2 | (10) | 0 | (13) | ||
Reorganization items, net | 0 | 633 | 0 | 677 | ||
(Gain) from the sale of a business | 0 | (8) | 0 | (400) | ||
Change in fair value of Public Warrants | (461) | 0 | (511) | 0 | ||
Total expenses | 1,225 | 2,088 | 2,479 | 3,109 | ||
Income (loss) before income taxes | 1,119 | (215) | 1,675 | 52 | ||
Income tax (provision) benefit | (179) | 46 | (309) | (33) | ||
Net income (loss) | 940 | $ 426 | (169) | $ 189 | 1,366 | 19 |
Net (income) loss attributable to noncontrolling interests | 0 | 1 | 0 | 2 | ||
Net income (loss) attributable to Hertz | $ 940 | $ (168) | $ 1,366 | $ 21 | ||
Weighted-average common shares outstanding: | ||||||
Basic (in shares) | 398 | 160 | 415 | 158 | ||
Diluted (in shares) | 424 | 160 | 443 | 158 | ||
Earnings (loss) per common share: | ||||||
Basic (in dollars per share) | $ 2.36 | $ (1.05) | $ 3.29 | $ 0.13 | ||
Diluted (in dollars per share) | $ 1.13 | $ (1.05) | $ 1.93 | $ 0.13 | ||
Vehicles | ||||||
Expenses: | ||||||
Total interest expense, net | $ 45 | $ 98 | $ 50 | $ 202 | ||
Non-vehicle | ||||||
Expenses: | ||||||
Non-vehicle depreciation and amortization | 36 | 50 | 69 | 104 | ||
Total interest expense, net | $ 41 | $ 91 | $ 80 | $ 135 |
THC - CONDENSED CONSOLIDATED ST
THC - CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Revenues: | ||||
Revenues | $ 2,344 | $ 1,873 | $ 4,154 | $ 3,161 |
Expenses: | ||||
Direct vehicle and operating | 1,199 | 946 | 2,252 | 1,724 |
Depreciation of revenue earning vehicles and lease charges, net | 106 | 116 | 47 | 359 |
Selling, general and administrative | 257 | 172 | 492 | 321 |
Total interest expense, net | 86 | 189 | 130 | 337 |
Other (income) expense, net | 2 | (10) | 0 | (13) |
Reorganization items, net | 0 | 633 | 0 | 677 |
(Gain) from the sale of a business | 0 | (8) | 0 | (400) |
Total expenses | 1,225 | 2,088 | 2,479 | 3,109 |
Income (loss) before income taxes | 1,119 | (215) | 1,675 | 52 |
Income tax (provision) benefit | (179) | 46 | (309) | (33) |
Net income (loss) | 940 | (169) | 1,366 | 19 |
Net (income) loss attributable to noncontrolling interests | 0 | 1 | 0 | 2 |
Net income (loss) attributable to Hertz | 940 | (168) | 1,366 | 21 |
Vehicles | ||||
Expenses: | ||||
Total interest expense, net | 45 | 98 | 50 | 202 |
Non-vehicle | ||||
Expenses: | ||||
Non-vehicle depreciation and amortization | 36 | 50 | 69 | 104 |
Total interest expense, net | 41 | 91 | 80 | 135 |
The Hertz Corporation | ||||
Revenues: | ||||
Revenues | 2,344 | 1,873 | 4,154 | 3,161 |
Expenses: | ||||
Direct vehicle and operating | 1,199 | 946 | 2,252 | 1,724 |
Depreciation of revenue earning vehicles and lease charges, net | 106 | 116 | 47 | 359 |
Selling, general and administrative | 257 | 172 | 492 | 321 |
Total interest expense, net | 86 | 189 | 130 | 337 |
Other (income) expense, net | 2 | (10) | 0 | (13) |
Reorganization items, net | 0 | 469 | 0 | 513 |
(Gain) from the sale of a business | 0 | (8) | 0 | (400) |
Total expenses | 1,686 | 1,924 | 2,990 | 2,945 |
Income (loss) before income taxes | 658 | (51) | 1,164 | 216 |
Income tax (provision) benefit | (178) | 46 | (308) | (33) |
Net income (loss) | 480 | (5) | 856 | 183 |
Net (income) loss attributable to noncontrolling interests | 0 | 1 | 0 | 2 |
Net income (loss) attributable to Hertz | 480 | (4) | 856 | 185 |
The Hertz Corporation | Vehicles | ||||
Expenses: | ||||
Total interest expense, net | 45 | 98 | 50 | 202 |
The Hertz Corporation | Non-vehicle | ||||
Expenses: | ||||
Non-vehicle depreciation and amortization | 36 | 50 | 69 | 104 |
Total interest expense, net | $ 41 | $ 91 | $ 80 | $ 135 |
HGH - CONDENSED CONSOLIDATED _3
HGH - CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||||
Net income (loss) | $ 940 | $ 426 | $ (169) | $ 189 | $ 1,366 | $ 19 |
Other comprehensive income (loss): | ||||||
Foreign currency translation adjustments | (59) | (7) | (66) | 10 | ||
Total other comprehensive income (loss) | (59) | $ (7) | (7) | $ 17 | (66) | 10 |
Total comprehensive income (loss) | 881 | (176) | 1,300 | 29 | ||
Comprehensive (income) loss attributable to noncontrolling interests | 0 | 1 | 0 | 2 | ||
Comprehensive income (loss) attributable to Hertz Global | $ 881 | $ (175) | $ 1,300 | $ 31 |
THC - CONDENSED CONSOLIDATED _3
THC - CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Net income (loss) | $ 940 | $ (169) | $ 1,366 | $ 19 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | (59) | (7) | (66) | 10 |
Total other comprehensive income (loss) | (59) | (7) | (66) | 10 |
Total comprehensive income (loss) | 881 | (176) | 1,300 | 29 |
Comprehensive (income) loss attributable to noncontrolling interests | 0 | 1 | 0 | 2 |
Comprehensive income (loss) attributable to Hertz Global | 881 | (175) | 1,300 | 31 |
The Hertz Corporation | ||||
Net income (loss) | 480 | (5) | 856 | 183 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | (59) | (7) | (66) | 10 |
Total other comprehensive income (loss) | (59) | (7) | (66) | 10 |
Total comprehensive income (loss) | 421 | (12) | 790 | 193 |
Comprehensive (income) loss attributable to noncontrolling interests | 0 | 1 | 0 | 2 |
Comprehensive income (loss) attributable to Hertz Global | $ 421 | $ (11) | $ 790 | $ 195 |
HGH - CONDENSED CONSOLIDATED _4
HGH - CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) - USD ($) shares in Millions, $ in Millions | Total | Stockholders' Equity Attributable to Hertz Global | Preferred Stock | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Non-controlling Interests | [2] | ||
Beginning Balance (in shares) at Dec. 31, 2020 | 0 | |||||||||||
Beginning Balance at Dec. 31, 2020 | $ 0 | |||||||||||
Ending Balance (in shares) at Mar. 31, 2021 | 0 | |||||||||||
Ending Balance at Mar. 31, 2021 | $ 0 | |||||||||||
Beginning Balance (in shares) at Dec. 31, 2020 | 156 | |||||||||||
Beginning Balance (in shares) at Dec. 31, 2020 | 2 | |||||||||||
Beginning Balance at Dec. 31, 2020 | $ 93 | $ 56 | $ 2 | $ 3,047 | $ (2,681) | [1] | $ (212) | $ (100) | $ 37 | |||
Increase (Decrease) in Stockholders' Equity | ||||||||||||
Net income (loss) | 189 | 190 | 190 | [1] | (1) | |||||||
Other comprehensive income (loss) | 17 | 17 | 17 | |||||||||
Stock-based compensation charges, net of tax | 2 | 2 | 2 | |||||||||
Distributions to noncontrolling interests | (11) | (11) | ||||||||||
Ending Balance (in shares) at Mar. 31, 2021 | 156 | |||||||||||
Ending Balance (in shares) at Mar. 31, 2021 | 2 | |||||||||||
Ending Balance at Mar. 31, 2021 | 290 | 265 | $ 2 | 3,049 | (2,491) | [1] | (195) | $ (100) | 25 | |||
Beginning Balance (in shares) at Dec. 31, 2020 | 0 | |||||||||||
Beginning Balance at Dec. 31, 2020 | $ 0 | |||||||||||
Ending Balance (in shares) at Jun. 30, 2021 | 2 | |||||||||||
Ending Balance at Jun. 30, 2021 | $ 1,433 | |||||||||||
Beginning Balance (in shares) at Dec. 31, 2020 | 156 | |||||||||||
Beginning Balance (in shares) at Dec. 31, 2020 | 2 | |||||||||||
Beginning Balance at Dec. 31, 2020 | 93 | 56 | $ 2 | 3,047 | (2,681) | [1] | (212) | $ (100) | 37 | |||
Increase (Decrease) in Stockholders' Equity | ||||||||||||
Net income (loss) | 19 | |||||||||||
Other comprehensive income (loss) | 10 | |||||||||||
Cancellation of stock-based awards | (10) | |||||||||||
Ending Balance (in shares) at Jun. 30, 2021 | 471 | |||||||||||
Ending Balance (in shares) at Jun. 30, 2021 | 0 | |||||||||||
Ending Balance at Jun. 30, 2021 | 3,639 | 3,620 | $ 5 | 6,476 | (2,659) | [1] | (202) | $ 0 | 19 | |||
Beginning Balance (in shares) at Mar. 31, 2021 | 0 | |||||||||||
Beginning Balance at Mar. 31, 2021 | $ 0 | |||||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||||||||
Preferred stock issuance, net (in shares) | 2 | |||||||||||
Preferred stock issuance, net | $ 1,433 | |||||||||||
Ending Balance (in shares) at Jun. 30, 2021 | 2 | |||||||||||
Ending Balance at Jun. 30, 2021 | $ 1,433 | |||||||||||
Beginning Balance (in shares) at Mar. 31, 2021 | 156 | |||||||||||
Beginning Balance (in shares) at Mar. 31, 2021 | 2 | |||||||||||
Beginning Balance at Mar. 31, 2021 | 290 | 265 | $ 2 | 3,049 | (2,491) | [1] | (195) | $ (100) | 25 | |||
Increase (Decrease) in Stockholders' Equity | ||||||||||||
Net income (loss) | (169) | (168) | (168) | [1] | (1) | |||||||
Other comprehensive income (loss) | (7) | (7) | (7) | |||||||||
Distributions to noncontrolling interests | (5) | (5) | ||||||||||
Cancellation of common and treasury shares in exchange for new common shares (in shares) | (142) | (2) | ||||||||||
Cancellation of common and treasury shares in exchange for new common shares | 0 | 0 | $ (2) | (98) | $ 100 | |||||||
Cancellation of stock-based awards | (10) | (10) | (10) | |||||||||
Distributions to common stockholders | (239) | (239) | (239) | |||||||||
Contribution from Plan Sponsors (in shares) | 277 | |||||||||||
Contribution from Plan Sponsors | 2,781 | 2,781 | $ 3 | 2,778 | ||||||||
Rights Offering, net (in shares) | 180 | |||||||||||
Rights Offering, net | 1,798 | 1,798 | $ 2 | 1,796 | ||||||||
Public Warrants issuance | (800) | (800) | (800) | |||||||||
Ending Balance (in shares) at Jun. 30, 2021 | 471 | |||||||||||
Ending Balance (in shares) at Jun. 30, 2021 | 0 | |||||||||||
Ending Balance at Jun. 30, 2021 | 3,639 | $ 3,620 | $ 5 | 6,476 | (2,659) | [1] | (202) | $ 0 | $ 19 | |||
Beginning Balance (in shares) at Dec. 31, 2021 | 0 | |||||||||||
Beginning Balance at Dec. 31, 2021 | $ 0 | |||||||||||
Ending Balance (in shares) at Mar. 31, 2022 | 0 | |||||||||||
Ending Balance at Mar. 31, 2022 | $ 0 | |||||||||||
Beginning Balance (in shares) at Dec. 31, 2021 | 450 | |||||||||||
Beginning Balance (in shares) at Dec. 31, 2021 | 27 | |||||||||||
Beginning Balance at Dec. 31, 2021 | 2,977 | $ 5 | 6,209 | (2,315) | (214) | $ (708) | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||
Net income (loss) | 426 | 426 | ||||||||||
Other comprehensive income (loss) | (7) | (7) | ||||||||||
Stock-based compensation charges, net of tax | 28 | 28 | ||||||||||
Net settlement on vesting of restricted stock | (4) | (4) | ||||||||||
Public Warrant exercises | [3] | 4 | 4 | |||||||||
Share repurchases (in shares) | (35) | 35 | ||||||||||
Share repurchases | (722) | $ (722) | ||||||||||
Ending Balance (in shares) at Mar. 31, 2022 | 415 | |||||||||||
Ending Balance (in shares) at Mar. 31, 2022 | 62 | |||||||||||
Ending Balance at Mar. 31, 2022 | 2,702 | $ 5 | 6,237 | (1,889) | (221) | $ (1,430) | ||||||
Beginning Balance (in shares) at Dec. 31, 2021 | 0 | |||||||||||
Beginning Balance at Dec. 31, 2021 | $ 0 | |||||||||||
Ending Balance (in shares) at Jun. 30, 2022 | 0 | |||||||||||
Ending Balance at Jun. 30, 2022 | $ 0 | |||||||||||
Beginning Balance (in shares) at Dec. 31, 2021 | 450 | |||||||||||
Beginning Balance (in shares) at Dec. 31, 2021 | 27 | |||||||||||
Beginning Balance at Dec. 31, 2021 | 2,977 | $ 5 | 6,209 | (2,315) | (214) | $ (708) | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||
Net income (loss) | 1,366 | |||||||||||
Other comprehensive income (loss) | (66) | |||||||||||
Ending Balance (in shares) at Jun. 30, 2022 | 368 | |||||||||||
Ending Balance (in shares) at Jun. 30, 2022 | 109 | |||||||||||
Ending Balance at Jun. 30, 2022 | 2,729 | $ 5 | 6,274 | (949) | (280) | $ (2,321) | ||||||
Beginning Balance (in shares) at Mar. 31, 2022 | 0 | |||||||||||
Beginning Balance at Mar. 31, 2022 | $ 0 | |||||||||||
Ending Balance (in shares) at Jun. 30, 2022 | 0 | |||||||||||
Ending Balance at Jun. 30, 2022 | $ 0 | |||||||||||
Beginning Balance (in shares) at Mar. 31, 2022 | 415 | |||||||||||
Beginning Balance (in shares) at Mar. 31, 2022 | 62 | |||||||||||
Beginning Balance at Mar. 31, 2022 | 2,702 | $ 5 | 6,237 | (1,889) | (221) | $ (1,430) | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||
Net income (loss) | 940 | 940 | ||||||||||
Other comprehensive income (loss) | (59) | (59) | ||||||||||
Stock-based compensation charges, net of tax | 36 | 36 | ||||||||||
Public Warrant exercises | [3] | 1 | 1 | |||||||||
Share repurchases (in shares) | (47) | 47 | ||||||||||
Share repurchases | (891) | $ (891) | ||||||||||
Ending Balance (in shares) at Jun. 30, 2022 | 368 | |||||||||||
Ending Balance (in shares) at Jun. 30, 2022 | 109 | |||||||||||
Ending Balance at Jun. 30, 2022 | $ 2,729 | $ 5 | $ 6,274 | $ (949) | $ (280) | $ (2,321) | ||||||
[1]Net income (loss) is computed independently each quarter. As a result, the quarter amounts presented herein may be rounded to agree to accumulated deficit in the accompanying unaudited condensed consolidated balance sheet.[2]See "767 Auto Leasing LLC" in Note 13, "Related Party Transactions."[3]See Note 8, "Public Warrants, Equity and Earnings (Loss) Per Common Share – Hertz Global." |
THC - CONDENSED CONSOLIDATED _4
THC - CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Millions | Total | The Hertz Corporation | Stockholders' Equity Attributable to Hertz Global | Stockholders' Equity Attributable to Hertz Global The Hertz Corporation | Common Stock | Common Stock The Hertz Corporation | Additional Paid-In Capital | Additional Paid-In Capital The Hertz Corporation | Due To Affiliate The Hertz Corporation | Accumulated Deficit | Accumulated Deficit The Hertz Corporation | Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The Hertz Corporation | Non-controlling Interests | [2] | Non-controlling Interests The Hertz Corporation | [3] | ||
Beginning Balance (in shares) at Dec. 31, 2020 | 156,000,000 | 100 | |||||||||||||||||
Beginning Balance at Dec. 31, 2020 | $ 93 | $ (5) | $ 56 | $ (42) | $ 2 | $ 0 | $ 3,047 | $ 3,953 | $ 0 | $ (2,681) | [1] | $ (3,783) | $ (212) | $ (212) | $ 37 | $ 37 | |||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||||||
Net income (loss) | 189 | 189 | 190 | 190 | 190 | [1] | 190 | (1) | (1) | ||||||||||
Other comprehensive income (loss) | 17 | 17 | 17 | 17 | 17 | 17 | |||||||||||||
Stock-based compensation charges, net of tax | 2 | 2 | 2 | 2 | 2 | 2 | |||||||||||||
Distributions to noncontrolling interests | (11) | (11) | (11) | (11) | |||||||||||||||
Ending Balance (in shares) at Mar. 31, 2021 | 156,000,000 | 100 | |||||||||||||||||
Ending Balance at Mar. 31, 2021 | 290 | 192 | 265 | 167 | $ 2 | $ 0 | 3,049 | 3,955 | 0 | (2,491) | [1] | (3,593) | (195) | (195) | 25 | 25 | |||
Beginning Balance (in shares) at Dec. 31, 2020 | 156,000,000 | 100 | |||||||||||||||||
Beginning Balance at Dec. 31, 2020 | 93 | (5) | 56 | (42) | $ 2 | $ 0 | 3,047 | 3,953 | 0 | (2,681) | [1] | (3,783) | (212) | (212) | 37 | 37 | |||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||||||
Net income (loss) | 19 | 183 | |||||||||||||||||
Other comprehensive income (loss) | 10 | 10 | |||||||||||||||||
Cancellation of stock-based awards | (10) | ||||||||||||||||||
Ending Balance (in shares) at Jun. 30, 2021 | 471,000,000 | 100 | |||||||||||||||||
Ending Balance at Jun. 30, 2021 | 3,639 | 5,868 | 3,620 | 5,849 | $ 5 | $ 0 | 6,476 | 9,583 | 65 | (2,659) | [1] | (3,597) | (202) | (202) | 19 | 19 | |||
Beginning Balance (in shares) at Mar. 31, 2021 | 156,000,000 | 100 | |||||||||||||||||
Beginning Balance at Mar. 31, 2021 | 290 | 192 | 265 | 167 | $ 2 | $ 0 | 3,049 | 3,955 | 0 | (2,491) | [1] | (3,593) | (195) | (195) | 25 | 25 | |||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||||||
Net income (loss) | (169) | (5) | (168) | (4) | (168) | [1] | (4) | (1) | (1) | ||||||||||
Other comprehensive income (loss) | (7) | (7) | (7) | (7) | (7) | (7) | |||||||||||||
Distributions to noncontrolling interests | (5) | (5) | (5) | (5) | |||||||||||||||
Net income (loss) including adjustments | (5) | ||||||||||||||||||
Due to Hertz Holdings | 65 | 65 | 65 | ||||||||||||||||
Cancellation of stock-based awards | (10) | (10) | (10) | (10) | (10) | (10) | |||||||||||||
Contributions from Hertz Holdings | 5,638 | 5,638 | 5,638 | 0 | |||||||||||||||
Dividends paid to Hertz Holdings | (239) | (239) | (239) | ||||||||||||||||
Ending Balance (in shares) at Jun. 30, 2021 | 471,000,000 | 100 | |||||||||||||||||
Ending Balance at Jun. 30, 2021 | 3,639 | 5,868 | $ 3,620 | $ 5,849 | $ 5 | $ 0 | 6,476 | 9,583 | $ 65 | (2,659) | [1] | (3,597) | (202) | (202) | $ 19 | $ 19 | |||
Beginning Balance (in shares) at Dec. 31, 2021 | 450,000,000 | 100 | |||||||||||||||||
Beginning Balance at Dec. 31, 2021 | 2,977 | 4,350 | $ 5 | $ 0 | 6,209 | 7,190 | (2,315) | (2,626) | (214) | (214) | |||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||||||
Net income (loss) | 426 | 376 | 426 | 376 | |||||||||||||||
Other comprehensive income (loss) | (7) | (7) | (7) | (7) | |||||||||||||||
Stock-based compensation charges, net of tax | 28 | 28 | 28 | 28 | |||||||||||||||
Dividends paid to Hertz Holdings | [4] | (767) | (767) | ||||||||||||||||
Ending Balance (in shares) at Mar. 31, 2022 | 415,000,000 | 100 | |||||||||||||||||
Ending Balance at Mar. 31, 2022 | 2,702 | 3,980 | $ 5 | $ 0 | 6,237 | 6,451 | (1,889) | (2,250) | (221) | (221) | |||||||||
Beginning Balance (in shares) at Dec. 31, 2021 | 450,000,000 | 100 | |||||||||||||||||
Beginning Balance at Dec. 31, 2021 | 2,977 | 4,350 | $ 5 | $ 0 | 6,209 | 7,190 | (2,315) | (2,626) | (214) | (214) | |||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||||||
Net income (loss) | 1,366 | 856 | |||||||||||||||||
Other comprehensive income (loss) | (66) | (66) | |||||||||||||||||
Ending Balance (in shares) at Jun. 30, 2022 | 368,000,000 | 100 | |||||||||||||||||
Ending Balance at Jun. 30, 2022 | 2,729 | 3,556 | $ 5 | $ 0 | 6,274 | 5,606 | (949) | (1,770) | (280) | (280) | |||||||||
Beginning Balance (in shares) at Mar. 31, 2022 | 415,000,000 | 100 | |||||||||||||||||
Beginning Balance at Mar. 31, 2022 | 2,702 | 3,980 | $ 5 | $ 0 | 6,237 | 6,451 | (1,889) | (2,250) | (221) | (221) | |||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||||||
Net income (loss) | 940 | 480 | 940 | 480 | |||||||||||||||
Other comprehensive income (loss) | (59) | (59) | (59) | (59) | |||||||||||||||
Stock-based compensation charges, net of tax | 36 | 36 | 36 | 36 | |||||||||||||||
Dividends paid to Hertz Holdings | [4] | (881) | (881) | ||||||||||||||||
Ending Balance (in shares) at Jun. 30, 2022 | 368,000,000 | 100 | |||||||||||||||||
Ending Balance at Jun. 30, 2022 | $ 2,729 | $ 3,556 | $ 5 | $ 0 | $ 6,274 | $ 5,606 | $ (949) | $ (1,770) | $ (280) | $ (280) | |||||||||
[1]Net income (loss) is computed independently each quarter. As a result, the quarter amounts presented herein may be rounded to agree to accumulated deficit in the accompanying unaudited condensed consolidated balance sheet.[2]See "767 Auto Leasing LLC" in Note 13, "Related Party Transactions."[3]See "767 Auto Leasing LLC" in Note 13, "Related Party Transactions."[4]See "Share Repurchase Programs for Common Stock" in Note 8, "Public Warrants, Equity and Earnings (Loss) Per Common Share – Hertz Global," for additional information. |
HGH - CONDENSED CONSOLIDATED _5
HGH - CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | ||
Cash flows from operating activities: | |||
Net income (loss) | $ 1,366 | $ 19 | |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Depreciation and reserves for revenue earning vehicles, net | 145 | 420 | |
Depreciation and amortization, non-vehicle | 69 | 104 | |
Amortization of deferred financing costs and debt discount (premium) | 25 | 98 | |
Loss on extinguishment of debt | 0 | 8 | |
Stock-based compensation charges | 64 | 2 | |
Provision for receivables allowance | 23 | 64 | |
Deferred income taxes, net | 249 | (16) | |
Reorganization items, net | 0 | 314 | |
(Gain) from the sale of a business | 0 | (400) | |
Change in fair value of Public Warrants | (511) | 0 | |
(Gain) loss on financial instruments | (65) | 2 | |
Other | (3) | (10) | |
Changes in assets and liabilities: | |||
Non-vehicle receivables | (200) | (214) | |
Prepaid expenses and other assets | (87) | (67) | |
Operating lease right-of-use assets | 79 | 154 | |
Non-vehicle accounts payable | (32) | 94 | |
Accrued liabilities | 233 | (11) | |
Accrued taxes, net | 52 | 91 | |
Operating lease liabilities | (93) | (160) | |
Self-insured liabilities | 15 | (27) | |
Net cash provided by (used in) operating activities | 1,329 | 465 | |
Cash flows from investing activities: | |||
Revenue earning vehicles expenditures | (6,089) | (4,136) | |
Proceeds from disposal of revenue earning vehicles | 2,887 | 1,199 | |
Non-vehicle capital asset expenditures | (59) | (17) | |
Proceeds from non-vehicle capital assets disposed of or to be disposed of | 6 | 10 | |
Collateral payments | 0 | (303) | |
Collateral returned in exchange for letters of credit | 19 | 114 | |
Return of (investment in) equity investments | (15) | 0 | |
Proceeds from the sale of a business, net of cash sold | 0 | 818 | |
Other | 0 | (1) | |
Net cash provided by (used in) investing activities | (3,251) | (2,316) | |
Cash flows from financing activities: | |||
Payment of financing costs | (38) | (151) | |
Proceeds from Plan Sponsors | 0 | 2,781 | |
Proceeds from Rights Offering, net | 0 | 1,635 | |
Proceeds from the issuance of preferred stock, net | 0 | 1,433 | |
Distributions to common stockholders | 0 | (239) | |
Proceeds from exercises of Public Warrants | 3 | 0 | |
Share repurchases | (1,647) | 0 | |
Early redemption payments | 0 | (85) | |
Contributions from (distributions to) noncontrolling interests | 0 | (15) | |
Other | (4) | 0 | |
Net cash provided by (used in) financing activities | 859 | 2,976 | |
Effect of foreign currency exchange rate changes on cash and cash equivalents and restricted cash and cash equivalents | (25) | (8) | |
Net increase (decrease) in cash and cash equivalents and restricted cash and cash equivalents during the period | (1,088) | 1,117 | |
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period | [1] | 2,651 | 1,578 |
Cash and cash equivalents and restricted cash and cash equivalents at end of period | 1,563 | 2,695 | |
Cash paid during the period for: | |||
Income taxes, net of refunds | 37 | 2 | |
Supplemental disclosures of non-cash information: | |||
Purchases of revenue earning vehicles included in accounts payable, net of incentives | 128 | 39 | |
Sales of revenue earning vehicles included in vehicle receivables | 81 | 33 | |
Purchases of non-vehicle capital assets included in accounts payable | 21 | 24 | |
Revenue earning vehicles and non-vehicle capital assets acquired through finance lease | 6 | 56 | |
Public Warrants issuance | 0 | 800 | |
Public Warrant exercises | 3 | 0 | |
Accrual for purchases of treasury shares | 20 | 0 | |
Backstop equity issuance | 0 | 164 | |
Vehicles | |||
Cash flows from financing activities: | |||
Proceeds from issuance of debt | 7,379 | 8,939 | |
Repayments of debt | (4,824) | (8,120) | |
Cash paid during the period for: | |||
Interest, net of amounts capitalized: | 92 | 203 | |
Non-vehicle | |||
Cash flows from financing activities: | |||
Proceeds from issuance of debt | 0 | 3,139 | |
Repayments of debt | (10) | (6,341) | |
Cash paid during the period for: | |||
Interest, net of amounts capitalized: | $ 74 | $ 158 | |
[1]Amounts include cash and cash equivalents and restricted cash and cash equivalents which were held for sale at December 31, 2020, prior to the completion of the Donlen Sale in the first quarter of 2021, as disclosed in Note 3, "Divestitures." |
THC - CONDENSED CONSOLIDATED _5
THC - CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | ||
Cash flows from operating activities: | |||
Net income (loss) | $ 1,366 | $ 19 | |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Depreciation and reserves for revenue earning vehicles, net | 145 | 420 | |
Depreciation and amortization, non-vehicle | 69 | 104 | |
Amortization of deferred financing costs and debt discount (premium) | 25 | 98 | |
Loss on extinguishment of debt | 0 | 8 | |
Stock-based compensation charges | 64 | 2 | |
Provision for receivables allowance | 23 | 64 | |
Deferred income taxes, net | 249 | (16) | |
Reorganization items, net | 0 | 314 | |
(Gain) from the sale of a business | 0 | (400) | |
(Gain) loss on financial instruments | (65) | 2 | |
Other | (3) | (10) | |
Changes in assets and liabilities: | |||
Non-vehicle receivables | (200) | (214) | |
Prepaid expenses and other assets | (87) | (67) | |
Operating lease right-of-use assets | 79 | 154 | |
Non-vehicle accounts payable | (32) | 94 | |
Accrued liabilities | 233 | (11) | |
Accrued taxes, net | 52 | 91 | |
Operating lease liabilities | (93) | (160) | |
Self-insured liabilities | 15 | (27) | |
Net cash provided by (used in) operating activities | 1,329 | 465 | |
Cash flows from investing activities: | |||
Revenue earning vehicles expenditures | (6,089) | (4,136) | |
Proceeds from disposal of revenue earning vehicles | 2,887 | 1,199 | |
Non-vehicle capital asset expenditures | (59) | (17) | |
Proceeds from non-vehicle capital assets disposed of or to be disposed of | 6 | 10 | |
Collateral payments | 0 | (303) | |
Collateral returned in exchange for letters of credit | 19 | 114 | |
Return of (investment in) equity investments | (15) | 0 | |
Proceeds from the sale of a business, net of cash sold | 0 | 818 | |
Other | 0 | (1) | |
Net cash provided by (used in) investing activities | (3,251) | (2,316) | |
Cash flows from financing activities: | |||
Payment of financing costs | (38) | (151) | |
Early redemption payments | 0 | (85) | |
Contributions from (distributions to) noncontrolling interests | 0 | (15) | |
Net cash provided by (used in) financing activities | 859 | 2,976 | |
Effect of foreign currency exchange rate changes on cash and cash equivalents and restricted cash and cash equivalents | (25) | (8) | |
Net increase (decrease) in cash and cash equivalents and restricted cash and cash equivalents during the period | (1,088) | 1,117 | |
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period | [1] | 2,651 | 1,578 |
Cash and cash equivalents and restricted cash and cash equivalents at end of period | 1,563 | 2,695 | |
Cash paid during the period for: | |||
Income taxes, net of refunds | 37 | 2 | |
Supplemental disclosures of non-cash information: | |||
Purchases of revenue earning vehicles included in accounts payable, net of incentives | 128 | 39 | |
Sales of revenue earning vehicles included in vehicle receivables | 81 | 33 | |
Purchases of non-vehicle capital assets included in accounts payable | 21 | 24 | |
Revenue earning vehicles and non-vehicle capital assets acquired through finance lease | 6 | 56 | |
Vehicles | |||
Cash flows from financing activities: | |||
Proceeds from issuance of debt | 7,379 | 8,939 | |
Repayments of debt | (4,824) | (8,120) | |
Cash paid during the period for: | |||
Interest, net of amounts capitalized: | 92 | 203 | |
Non-vehicle | |||
Cash flows from financing activities: | |||
Proceeds from issuance of debt | 0 | 3,139 | |
Repayments of debt | (10) | (6,341) | |
Cash paid during the period for: | |||
Interest, net of amounts capitalized: | 74 | 158 | |
The Hertz Corporation | |||
Cash flows from operating activities: | |||
Net income (loss) | 856 | 183 | |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Depreciation and reserves for revenue earning vehicles, net | 145 | 420 | |
Depreciation and amortization, non-vehicle | 69 | 104 | |
Amortization of deferred financing costs and debt discount (premium) | 25 | 98 | |
Loss on extinguishment of debt | 0 | 8 | |
Stock-based compensation charges | 64 | 2 | |
Provision for receivables allowance | 23 | 64 | |
Deferred income taxes, net | 249 | (16) | |
Reorganization items, net | 0 | 150 | |
(Gain) from the sale of a business | 0 | (400) | |
(Gain) loss on financial instruments | (65) | 2 | |
Other | (3) | (10) | |
Changes in assets and liabilities: | |||
Non-vehicle receivables | (200) | (214) | |
Prepaid expenses and other assets | (87) | (67) | |
Operating lease right-of-use assets | 79 | 154 | |
Non-vehicle accounts payable | (32) | 94 | |
Accrued liabilities | 233 | (11) | |
Accrued taxes, net | 52 | 91 | |
Operating lease liabilities | (93) | (160) | |
Self-insured liabilities | 15 | (27) | |
Net cash provided by (used in) operating activities | 1,330 | 465 | |
Cash flows from investing activities: | |||
Revenue earning vehicles expenditures | (6,089) | (4,136) | |
Proceeds from disposal of revenue earning vehicles | 2,887 | 1,199 | |
Non-vehicle capital asset expenditures | (59) | (17) | |
Proceeds from non-vehicle capital assets disposed of or to be disposed of | 6 | 10 | |
Collateral payments | 0 | (303) | |
Collateral returned in exchange for letters of credit | 19 | 114 | |
Return of (investment in) equity investments | (15) | 0 | |
Proceeds from the sale of a business, net of cash sold | 0 | 818 | |
Other | 0 | (1) | |
Net cash provided by (used in) investing activities | (3,251) | (2,316) | |
Cash flows from financing activities: | |||
Payment of financing costs | (38) | (151) | |
Contributions from Hertz Holdings | 0 | 5,638 | |
Early redemption payments | 0 | (85) | |
Dividends paid to Hertz Holdings | (1,648) | 0 | |
Contributions from (distributions to) noncontrolling interests | 0 | (15) | |
Net cash provided by (used in) financing activities | 859 | 3,004 | |
Effect of foreign currency exchange rate changes on cash and cash equivalents and restricted cash and cash equivalents | (25) | (8) | |
Net increase (decrease) in cash and cash equivalents and restricted cash and cash equivalents during the period | (1,087) | 1,145 | |
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period | [2] | 2,650 | 1,550 |
Cash and cash equivalents and restricted cash and cash equivalents at end of period | 1,563 | 2,695 | |
Cash paid during the period for: | |||
Income taxes, net of refunds | 37 | 2 | |
Supplemental disclosures of non-cash information: | |||
Purchases of revenue earning vehicles included in accounts payable, net of incentives | 128 | 39 | |
Sales of revenue earning vehicles included in vehicle receivables | 81 | 33 | |
Purchases of non-vehicle capital assets included in accounts payable | 21 | 24 | |
Revenue earning vehicles and non-vehicle capital assets acquired through finance lease | 6 | 56 | |
The Hertz Corporation | Vehicles | |||
Cash flows from financing activities: | |||
Proceeds from issuance of debt | 7,379 | 8,939 | |
Repayments of debt | (4,824) | (8,120) | |
Cash paid during the period for: | |||
Interest, net of amounts capitalized: | 92 | 203 | |
The Hertz Corporation | Non-vehicle | |||
Cash flows from financing activities: | |||
Proceeds from issuance of debt | 0 | 3,139 | |
Repayments of debt | (10) | (6,341) | |
Cash paid during the period for: | |||
Interest, net of amounts capitalized: | $ 74 | $ 158 | |
[1]Amounts include cash and cash equivalents and restricted cash and cash equivalents which were held for sale at December 31, 2020, prior to the completion of the Donlen Sale in the first quarter of 2021, as disclosed in Note 3, "Divestitures."[2]Amounts include cash and cash equivalents and restricted cash and cash equivalents which were held for sale at December 31, 2020, prior to the completion of the Donlen Sale in the first quarter of 2021, as disclosed in Note 3, "Divestitures." |
Background
Background | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [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. On May 22, 2020, as a result of the impact from the COVID-19 global pandemic, Hertz Global, Hertz and certain of their direct and indirect subsidiaries in the U.S. and Canada (the "Debtors") filed voluntary petitions for relief under chapter 11 of title 11 ("Chapter 11") of the U.S. Bankruptcy Code (the "Chapter 11 Cases") in the U.S. Bankruptcy Court for the District of Delaware (the "Bankruptcy Court"). On June 10, 2021, a plan of reorganization (the "Plan of Reorganization") was confirmed by the Bankruptcy Court and on June 30, 2021, the Plan of Reorganization became effective and the Debtors emerged from Chapter 11. 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 sale of substantially all of the assets and certain liabilities of its Donlen subsidiary (the "Donlen Sale"), a business which provided vehicle leasing and fleet management services. |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation Basis of Presentation This Quarterly Report on Form 10-Q combines the quarterly reports on Form 10-Q for the quarterly period ended June 30, 2022 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. Certain charges related to the Chapter 11 Cases were recorded as reorganization items, net in the accompanying unaudited condensed consolidated statements of operations for the three and six months ended June 30, 2021 pursuant to the provisions of Accounting Standards Codification (“ASC”) 852, Reorganizations . See Note 15, "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, 2021 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, 2021 (the "2021 Form 10-K"), as filed with the Securities and Exchange Commission ("SEC") on February 23, 2022. Principles of Consolidation |
Divestitures
Divestitures | 6 Months Ended |
Jun. 30, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Divestitures | Divestitures Donlen SaleOn March 30, 2021, the Company completed the sale of substantially all of the assets and certain liabilities of its Donlen subsidiary. The proceeds from the sale were subject to certain post-closing adjustments in the second quarter of 2021 based on the level of assumed indebtedness, working capital and fleet equity. In the three and six months ended June 30, 2021, the Company recognized a pre-tax gain in its corporate operations of $8 million and $400 million, net of the impact of foreign currency adjustments, respectively, based on the difference in cash proceeds received of $891 million and $543 million net book value of assets sold plus a $53 million receivable in connection with the sale where cash proceeds were received in September 2021. |
Revenue Earning Vehicles
Revenue Earning Vehicles | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Earning Vehicles | Revenue Earning Vehicles The components of revenue earning vehicles, net are as follows: (In millions) June 30, December 31, Revenue earning vehicles $ 13,477 $ 10,506 Less accumulated depreciation (1,525) (1,518) 11,952 8,988 Revenue earning vehicles held for sale, net (1) 378 238 Revenue earning vehicles, net $ 12,330 $ 9,226 (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. Depreciation of revenue earning vehicles and lease charges, net includes the following: Three Months Ended June 30, Six Months Ended June 30, (In millions) 2022 2021 2022 2021 Depreciation of revenue earning vehicles $ 432 $ 167 $ 754 $ 432 (Gain) loss on disposal of revenue earning vehicles (331) (60) (718) (93) Rents paid for vehicles leased 5 9 11 20 Depreciation of revenue earning vehicles and lease charges, net $ 106 $ 116 $ 47 $ 359 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Debt The Company's debt, including its available credit facilities, consists of the following ($ in millions) as of June 30, 2022 and December 31, 2021: Facility Weighted-Average Interest Rate Fixed or Maturity June 30, December 31, Non-Vehicle Debt Term B Loan 4.33% Floating 6/2028 $ 1,287 $ 1,294 Term C Loan 4.33% Floating 6/2028 245 245 Senior Notes Due 2026 4.63% Fixed 12/2026 500 500 Senior Notes Due 2029 5.00% Fixed 12/2029 1,000 1,000 First Lien RCF N/A Floating 6/2026 — — Other Non-Vehicle Debt (1) 7.98% Fixed Various 13 16 Unamortized Debt Issuance Costs and Net (Discount) Premium (64) (69) Total Non-Vehicle Debt 2,981 2,986 Vehicle Debt HVF III U.S. ABS Program HVF III U.S. Vehicle Variable Funding Notes HVF III Series 2021-A Class A (2) 2.88% Floating 6/2024 2,273 2,813 HVF III Series 2021-A Class B (2) 3.65% Fixed 6/2023 188 188 2,461 3,001 HVF III U.S. Vehicle Medium Term Notes HVF III Series 2021-1 (2) 1.66% Fixed 12/2024 2,000 2,000 HVF III Series 2021-2 (2) 2.12% Fixed 12/2026 2,000 2,000 HVF III Series 2022-1 (2) 2.07% Fixed 6/2025 653 — HVF III Series 2022-2 (2) 2.42% Fixed 6/2027 653 — HVF III Series 2022-3 (2) 3.53% Fixed 3/2024 333 — HVF III Series 2022-4 (2) 3.87% Fixed 9/2025 580 — HVF III Series 2022-5 (2) 4.03% Fixed 9/2027 317 — 6,536 4,000 Vehicle Debt - Other Repurchase Facility 3.03% Fixed 7/2022 236 — European ABS (2) 1.80% Floating 10/2023 510 395 Hertz Canadian Securitization (2) 3.77% Floating 6/2024 326 191 Australian Securitization (2) 2.74% Floating 4/2024 140 128 New Zealand RCF 5.12% Floating 6/2024 37 39 U.K. Financing Facility 4.75% Floating 7/2022-6/2026 107 98 U.K. Toyota Financing Facility 2.20% Floating 8/2022-2/2023 27 9 Other Vehicle Debt 2.93% Floating 7/2022-4/2025 82 93 1,465 953 Facility Weighted-Average Interest Rate Fixed or Maturity June 30, December 31, Unamortized Debt Issuance Costs and Net (Discount) Premium (51) (33) Total Vehicle Debt 10,411 7,921 Total Debt $ 13,392 $ 10,907 (1) Other non-vehicle debt is primarily comprised of $9 million and $12 million in finance lease obligations (2) Maturity reference is to the earlier "expected final maturity date" as opposed to the subsequent "legal final maturity date." The expected final maturity date is the date by which Hertz and investors in the relevant indebtedness originally expect the outstanding principal of the relevant indebtedness to be repaid in full. The legal final maturity date is the date on which the outstanding principal of the relevant indebtedness is legally due and payable in full. Non-vehicle Debt In March 2022, Hertz increased the aggregate committed amount of the First Lien RCF from $1.3 billion to $1.5 billion and the sublimit for letters of credit from $1.1 billion to $1.4 billion and amended the First Lien RCF to change the benchmark from USD LIBOR to the Secured Overnight Financing Rate ("SOFR") based rate. In May 2022, Hertz increased the aggregate committed amount of the First Lien RCF from $1.5 billion to $1.7 billion and the sublimit for letters of credit from $1.4 billion to $1.6 billion. In June 2022, Hertz increased the aggregate committed amount of the First Lien RCF from $1.7 billion to $1.9 billion and the sublimit for letters of credit from $1.6 billion to $1.8 billion. In July 2022, Hertz increased the aggregate committed amount of the First Lien RCF by $55 million where the aggregate committed amount remains at $1.9 billion and the sublimit for letters of credit by $55 million where the aggregate sublimit remains at $1.8 billion. Vehicle Debt HVF III U.S. ABS Program HVF III Series 2021-A Notes : In March 2022, an increase to the commitments for the Series 2021-A Notes was made, increasing the maximum principal amount that may be outstanding from $3.0 billion to $3.2 billion. In May 2022, an increase to the commitments for the Series 2021-A Notes was made, increasing the maximum principal amount that may be outstanding from $3.2 billion to $3.6 billion. In June 2022, an increase to the commitments for the Series 2021-A Notes was made, increasing the maximum principal amount that may be outstanding from $3.6 billion to $3.8 billion. Additionally, the maturity date of the Series 2021-A Notes Class A Notes was extended to June 2024. In July 2022, an increase to the commitments for the Series 2021-A Notes was made, increasing the maximum principal amount that may be outstanding from $3.8 billion to $3.9 billion. HVF III Series 2022-1 Notes : In January 2022, Hertz issued the Series 2022-1 Notes in four classes (Class A, Class B, Class C and Class D) in an aggregate principal amount of $750 million. HVF III Series 2022-2 Notes : In January 2022, Hertz issued the Series 2022-2 Notes in four classes (Class A, Class B, Class C and Class D) in an aggregate principal amount of $750 million. HVF III Series 2022-3 Notes : In March 2022, Hertz issued the Series 2022-3 Notes in four classes (Class A, Class B, Class C and Class D) in an aggregate principal amount of $383 million. HVF III Series 2022-4 Notes : In March 2022, Hertz issued the Series 2022-4 Notes in four classes (Class A, Class B, Class C and Class D) in an aggregate principal amount of $667 million. HVF III Series 2022-5 Notes : In March 2022, Hertz issued the Series 2022-5 Notes in four classes (Class A, Class B, Class C and Class D) in an aggregate principal amount of $364 million. There is subordination within each of the preceding series based on class. HVF III Various Series 2022 Class D Notes: At the time of the respective HVF III initial offerings disclosed above, Hertz, an affiliate of HVF III, purchased the Class D Notes. Accordingly, the related principal amounts below are eliminated in consolidation as of June 30, 2022. (In millions) Aggregate Principal Amount HVF III Series 2022-1 Class D Notes $ 98 HVF III Series 2022-2 Class D Notes 98 HVF III Series 2022-3 Class D Notes 50 HVF III Series 2022-4 Class D Notes 87 HVF III Series 2022-5 Class D Notes 47 Total $ 380 In July 2022, $81 million of the Series 2022-1 and all of the Series 2022-3 Class D Notes were sold by Hertz to third parties. Vehicle Debt-Other Repurchase Facility In June 2022, Hertz entered into a repurchase agreement related to the outstanding HVF III Series 2022 Class D Notes (the "Repurchase Facility"), whereby Hertz may sell the HVF III Series 2022 Class D Notes to the Repurchase Facility counterparty and repurchase such notes from time to time. Transactions occurring under the Repurchase Facility are based on mutually agreeable terms and prevailing rates. As of June 30, 2022, transactions totaling $236 million were outstanding under the Repurchase Facility and such transactions bear interest at a rate of SOFR plus 150 basis points and have a 30-day tenor. Australian Securitization In January 2022, the Australian Securitization was amended to increase the aggregate maximum borrowings to AUD250 million and to extend the maturity to April 2024. New Zealand RCF In April 2022, Hertz New Zealand Holdings Limited, an indirect, wholly-owned subsidiary of Hertz, amended its credit agreement to extend the maturity to June 2024. U.K. Financing Facility In April 2022, Hertz U.K. Limited amended the U.K. Financing Facility to provide for aggregate maximum borrowings of up to £120 million, for a seasonal commitment period through October 2022. Following the expiration of the seasonal commitment period, aggregate maximum borrowings will revert to £100 million. Additionally, the U.K. Financing Facility was amended to extend the maturity of the aggregate maximum borrowings of £100 million to October 2023. U.K. Toyota Financing Facility In March 2022, Hertz U.K. Limited amended the U.K. Toyota Financing Facility to increase aggregate maximum borrowings from £10 million to £25 million and extended the maturity to October 2022. Hertz Canadian Securitization In June 2022, TCL Funding Limited Partnership, a bankruptcy remote, indirect, wholly-owned, special purpose subsidiary of Hertz, amended the Hertz Canadian Securitization to provide for aggregate maximum borrowings of CAD$450 million, for a seasonal commitment period through November 2022. Following the expiration of the seasonal commitment period, aggregate maximum borrowings will revert to CAD$350 million. Additionally, the Hertz Canadian Securitization was amended to extend the maturity of the aggregate maximum borrowings of CAD$350 million to June 2024. Borrowing Capacity and Availability Borrowing capacity and availability comes from the Company's revolving credit facilities, which are a combination of variable funding asset-backed securitization facilities, cash-flow based revolving credit facilities, asset-based revolving credit facilities and the First Lien RCF. 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 and, in the case of the First Lien RCF, less any issued standby letters of credit. 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 June 30, 2022 and are presented net of any outstanding letters of credit: (In millions) Remaining Availability Under Non-Vehicle Debt First Lien RCF $ 1,449 $ 1,449 Total Non-Vehicle Debt 1,449 1,449 Vehicle Debt HVF III Series 2021-A 1,383 — European ABS 279 — Hertz Canadian Securitization 23 — Australian Securitization 33 — U.K. Financing Facility 14 — U.K. Toyota Financing Facility 3 — Total Vehicle Debt 1,735 — Total $ 3,184 $ 1,449 Letters of Credit As of June 30, 2022, there were outstanding standby letters of credit totaling $701 million comprised primarily of $245 million issued under the term loan "C" facility (the "Term C Loan") and $441 million issued under the First Lien RCF. As of June 30, 2022, no capacity remains to issue letters of credit under the Term C Loan. Such letters of credit have been issued primarily to support the Company's insurance programs and to provide credit enhancement for the Company's asset-backed securitization facilities, as well as to support the Company's vehicle rental concessions and leaseholds. As of June 30, 2022, none of the issued letters of credit have been drawn upon. Pledges Related to Vehicle Financing 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 or asset-backed securities programs. None of the value of such assets (including the assets owned by Hertz Vehicle Financing III LLC and various other domestic and 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 under the European ABS 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 June 30, 2022 and December 31, 2021, IFF No. 2 had total assets of $838 million and $734 million, respectively, comprised primarily of intercompany receivables, and total liabilities of $837 million and $733 million, respectively, comprised primarily of debt. Covenant Compliance The First Lien RCF credit agreement (the "First Lien Credit Agreement") requires Hertz to comply with the following financial covenant: a First Lien Ratio of less than or equal to 3.00 to 1.00 in the first and last quarters of the calendar year and 3.50 to 1.00 in the second and third quarters of the calendar year. This financial covenant was effective beginning in the third quarter of 2021. As of June 30, 2022, Hertz was in compliance with the First Lien Ratio. In addition to the financial covenant, the First Lien Credit Agreement contains customary affirmative covenants including, among other things, the delivery of quarterly and annual financial statements and compliance certificates, and covenants related to conduct of business, maintenance of property and insurance, compliance with environmental laws and the granting of security interest for the benefit of the secured parties under that agreement on after-acquired real property, fixtures and future subsidiaries. The First Lien Credit Agreement also contains customary negative covenants, including, among other things, restrictions on the incurrence of liens, indebtedness, asset dispositions and restricted payments. As of June 30, 2022, the Company was in compliance with all covenants in the First Lien Credit Agreement. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2022 | |
Leases [Abstract] | |
Leases | Leases The Company enters into certain agreements as a lessor under which it rents vehicles and leases fleets to customers. 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 Six Months Ended (In millions) 2022 2021 2022 2021 Operating lease income from vehicle rentals $ 2,226 $ 1,798 $ 3,947 $ 2,896 Operating lease income from fleet leasing — — — 149 Variable operating lease income 57 39 101 40 Revenue accounted for under Topic 842 2,283 1,837 4,048 3,085 Revenue accounted for under Topic 606 61 36 106 76 Total revenues $ 2,344 $ 1,873 $ 4,154 $ 3,161 |
Leases | Leases The Company enters into certain agreements as a lessor under which it rents vehicles and leases fleets to customers. 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 Six Months Ended (In millions) 2022 2021 2022 2021 Operating lease income from vehicle rentals $ 2,226 $ 1,798 $ 3,947 $ 2,896 Operating lease income from fleet leasing — — — 149 Variable operating lease income 57 39 101 40 Revenue accounted for under Topic 842 2,283 1,837 4,048 3,085 Revenue accounted for under Topic 606 61 36 106 76 Total revenues $ 2,344 $ 1,873 $ 4,154 $ 3,161 |
Income Tax (Provision) Benefit
Income Tax (Provision) Benefit | 6 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Tax (Provision) Benefit | Income Tax (Provision) Benefit Hertz Global For the three months ended June 30, 2022, Hertz Global recorded a tax provision of $179 million which resulted in an effective tax rate of 16%. For the three months ended June 30, 2021, Hertz Global recorded a tax benefit of $46 million, which resulted in an effective tax rate of 22%. The change in tax in the three months ended June 30, 2022 compared to 2021 is driven by improvements in Hertz Global’s financial performance, as well as the non-taxable change in fair value of the Public Warrants in 2022, non-deductible bankruptcy costs incurred in 2021 and tax benefits associated with the restructuring in Europe recognized in 2021. For the first half of 2022, Hertz Global recorded a tax provision of $309 million which resulted in an effective tax rate of 18%. For the first half of 2021, Hertz Global recorded a tax expense of $33 million, which resulted in an effective tax rate of 63%. The change in tax in the first half of 2022 compared to 2021 is driven by improvements in Hertz Global’s financial performance, as well as the non-taxable change in fair value of the Public Warrants in 2022, non-deductible bankruptcy costs incurred in 2021 and tax benefits associated with the restructuring in Europe recognized in 2021. As of June 30, 2022, the Company has approximately $670 million gross, or $141 million U.S. federal tax effected, of capital loss carryforward relating to a European restructuring for which a full valuation allowance is recorded. The Company filed a request for a pre-filing agreement with the Internal Revenue Service ("IRS") in December 2021, to determine whether the capital loss on the European restructuring qualifies as an ordinary loss. In May of 2022, the IRS began its review of the character of the loss on the European restructuring. A favorable outcome from this proceeding could result in a full or partial release of the valuation allowance. Hertz For the three months ended June 30, 2022, Hertz recorded a tax provision of $178 million which resulted in an effective tax rate of 27%. For the three months ended June 30, 2021, the Company recorded a tax benefit of $46 million, which resulted in an effective tax rate of 90%. The change in tax in the three months ended June 30, 2022 compared to 2021 is driven by improvements in Hertz’s financial performance, as well as non-deductible bankruptcy costs incurred in 2021 and tax benefits associated with the restructuring in Europe recognized in 2021. For the first half of 2022, Hertz recorded a tax provision of $308 million which resulted in an effective tax rate of 26%. For the first half of 2021, the Company recorded a tax provision of $33 million, which resulted in an effective tax rate of 15%. The change in tax in the first half of 2022 compared to 2021 is driven by improvements in Hertz’s financial performance, as well as non-deductible bankruptcy costs incurred in the first half of 2021 and tax benefits associated with the restructuring in Europe recognized in the first half of 2021. As of June 30, 2022, the Company has approximately $670 million gross, or $141 million U.S. federal tax effected, of capital loss carryforward relating to a European restructuring for which a full valuation allowance is recorded. The Company filed a request for a pre-filing agreement with the Internal Revenue Service ("IRS") in December 2021, to determine whether the capital loss on the European restructuring qualifies as an ordinary loss. In May 2022, the IRS began its review of the character of the loss on the European restructuring. A favorable outcome from this proceeding could result in a full or partial release of the valuation allowance. |
Public Warrants, Equity and Ear
Public Warrants, Equity and Earnings (Loss) Per Common Share – Hertz Global | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Public Warrants, Equity and Earnings (Loss) Per Common Share – Hertz Global | Public Warrants, Equity and Earnings (Loss) Per Common Share – Hertz Global Public Warrants During the three and six months ended June 30, 2022, 44,700 and 189,890 Public Warrants were exercised, respectively, of which 13,223 and 46,650, respectively, were cashless exercises and 31,477 and 143,240, respectively, were exercised for $13.80 per share. As of June 30, 2022, a cumulative 6,230,170 Public Warrants have been exercised since their original issuance in June 2021. The Public Warrants are recorded at fair value in the accompanying unaudited condensed consolidated balance sheets as of June 30, 2022 and December 31, 2021. See Note 11, "Fair Value Measurements." Share Repurchase Programs for Common Stock In November 2021, Hertz Global's Board of Directors approved a share repurchase program (the "2021 Share Repurchase Program") that authorized the repurchase of up to $2.0 billion worth of shares of Hertz Global's outstanding common stock. Between January 1, 2022 and June 30, 2022, a total of 80,677,021 shares of Hertz Global's common stock were repurchased at an average share price of $19.74 for an aggregate purchase price of $1.6 billion. During the second quarter of 2022, the Company completed the 2021 Share Repurchase Program. A total of 97,783,047 shares of Hertz Global common stock were repurchased since the inception of this program for an aggregate purchase price of $2.0 billion. These amounts are included in treasury stock in the accompanying Hertz Global unaudited condensed consolidated balance sheet as of June 30, 2022. In June 2022, Hertz Global's Board of Directors approved a new share repurchase program (the "2022 Share Repurchase Program") that authorized additional repurchases of up to an incremental $2.0 billion worth of shares of Hertz Global's outstanding common stock. In June 2022, a total of 1,207,930 shares of Hertz Global's common stock were repurchased under this program at an average share price of $16.56 for an aggregate purchase price of $20 million. These amounts are included in treasury stock in the accompanying Hertz Global unaudited condensed consolidated balance sheet as of June 30, 2022. Between July 1, 2022 and July 21, 2022, a total of 8,092,200 shares of Hertz Global's common stock were repurchased at an average share price of $17.09 for an aggregate purchase price of $138 million. A total of 9,300,130 shares of Hertz Global's common stock have been repurchased since the inception of the 2022 Share Repurchase Program for an aggregate purchase price of $158 million. Hertz Global funded the share repurchases with available cash and dividend distributions from Hertz. Computation of Earnings (Loss) Per Common Share Basic earnings (loss) per common share has been computed based upon the weighted-average number of common shares outstanding. Diluted earnings (loss) per common share has been computed based upon the weighted-average number of common shares outstanding plus the effect of all potentially dilutive common stock equivalents, including Public Warrants, except when the effect would be anti-dilutive. For the three and six months ended June 30, 2022, the diluted weighted-average shares outstanding included the dilutive impact of Public Warrants where the Company assumed share settlement of the Public Warrants as of the beginning of the reporting period. Additionally, the Company removes the change in fair value of Public Warrants when computing diluted earnings (loss) per common share, when the impact of Public Warrants is dilutive. The following table sets forth the computation of basic and diluted earnings (loss) per common share: Three Months Ended Six Months Ended (In millions, except per share data) (1) 2022 2021 2022 2021 Numerator: Net income (loss) attributable and available to Hertz Global common stockholders, basic $ 940 $ (168) $ 1,366 $ 21 Change in fair value of Public Warrants (461) — (511) — Net income (loss) available to Hertz Global common stockholders, diluted $ 479 $ (168) $ 856 $ 21 Denominator: Basic weighted-average common shares outstanding 398 160 415 158 Dilutive effect of stock options, RSUs and PSUs 1 — 1 — Dilutive effect of Public Warrants 25 — 27 — Diluted weighted-average shares outstanding 424 160 443 158 Antidilutive stock options, RSUs and PSUs 7 1 6 1 Total antidilutive 7 1 6 1 Earnings (loss) per common share: Basic $ 2.36 $ (1.05) $ 3.29 $ 0.13 Diluted $ 1.13 $ (1.05) $ 1.93 $ 0.13 (1) The table above is denoted in millions, excluding earnings (loss) per common share. Amounts are calculated from the underlying numbers in thousands, and as a result, may not agree to the amounts shown in the table when calculated in millions. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation During the fourth quarter of 2021, Hertz Global's Board of Directors approved the Hertz Global Holdings, Inc. 2021 Omnibus Incentive Plan (the "2021 Omnibus Plan"). As of June 30, 2022, 42,470,050 shares of the Company's common stock are authorized and remain available for future grants under the 2021 Omnibus Plan. Vesting of the outstanding equity awards is also subject to accelerated vesting as set forth in the 2021 Omnibus Plan. During the three and six months ended June 30, 2022, compensation expense of $36 million, net of $3 million tax benefit, and $63 million, net of $4 million tax benefit, respectively, was recognized for grants under the 2021 Omnibus Plan and recorded in selling, general and administrative expense in the accompanying unaudited condensed consolidated income statement. As of June 30, 2022, there was $287 million of total unrecognized compensation cost expected to be recognized over the remaining 2.2 years, on a weighted average basis, of the requisite service period that began on the grant dates. Stock Options A summary of stock option activity for the first half of 2022 is presented below: Options Shares Weighted- Weighted- Aggregate Intrinsic Outstanding as of December 31, 2021 3,678,855 $ 26.17 9.9 $ — Granted — — — — Exercised — — — — Forfeited or Expired (244,640) 26.17 — — Outstanding as of June 30, 2022 3,434,215 — 9.4 — Exercisable as of June 30, 2022 (206,440) 26.17 9.4 — Non-vested as of June 30, 2022 3,227,775 Performance Stock Units ("PSUs") A summary of the PSU activity for the first half of 2022 is presented below: Shares Weighted- Aggregate Intrinsic Outstanding as of December 31, 2021 — $ — $ — Granted 9,928,917 17.73 — Vested — — — Forfeited or Expired (19,029) 22.02 — Outstanding as of June 30, 2022 9,909,888 17.72 157 Compensation expense for PSUs is based on the grant date fair value. For grants issued in 2022, vesting eligibility is based on market, performance and service conditions of one Grants Assumption 2022 Expected volatility 68 % Expected dividend yield — % Expected term (years) 5 Risk-free interest rate 1.71 % Weighted-average grant date fair value $ 17.61 Restricted Stock and Restricted Stock Units ("RSUs") A summary of RSU activity for the first half of 2022 is presented below: Shares Weighted- Aggregate Intrinsic Outstanding as of December 31, 2021 1,726,286 $ 26.17 $ 43 Granted 3,353,698 20.60 — Vested (568,812) 26.17 — Forfeited or Expired (119,604) 24.85 — Outstanding as of June 30, 2022 4,391,568 21.95 70 Additional information pertaining to RSU activity is as follows: Six Months Ended 2022 Total fair value of awards that vested (in millions) $ 15 Weighted-average grant-date fair value of awards granted $ 20.60 RSU grants issued in 2022 vest ratably over a period of two Deferred Stock Units As of June 30, 2022, there were approximately 48,000 outstanding shares of deferred stock units under the 2021 Omnibus Plan. |
Financial Instruments
Financial Instruments | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments | Financial Instruments The Company employs established risk management policies and procedures, and, under the terms of our ABS facilities, may be required to enter into interest rate derivatives, which seek to reduce the Company’s commercial risk exposure to fluctuations in interest rates and currency exchange rates. Although the instruments utilized involve varying degrees of credit, market and interest risk, the Company contracts with multiple counterparties to mitigate concentrations of risk and the counterparties to the agreements are expected to perform fully under the terms of the agreements. The Company monitors counterparty credit risk, including lenders, on a regular basis, but cannot be certain that all risks will be discerned or that its risk management policies and procedures will always be effective. Additionally, upon the occurrence of an event of default under the Company’s International Swaps and Derivatives Association ("ISDA") master derivative agreements, the non-defaulting party generally has the right, but not the obligation, to set-off any early termination amounts under any such agreements against any other amounts owed with regard to any other agreements between the parties to each such agreement. None of the Company's financial instruments have been designated as hedging instruments as of June 30, 2022 and December 31, 2021. Interest Rate Risk The Company uses a combination of interest rate caps and swaps to manage its exposure to interest rate movements and to manage its mix of floating and fixed-rate debt. Currency Exchange Rate Risk The Company uses foreign currency exchange rate derivative financial instruments to manage its currency exposure resulting from intercompany transactions and other cross currency obligations. Fair Value The following table summarizes the estimated fair value of financial instruments: Fair Value of Financial Instruments Asset Derivatives (1) Liability Derivatives (1) (In millions) June 30, 2022 December 31, 2021 June 30, 2022 December 31, 2021 Interest rate instruments $ 99 $ 12 $ — $ — Foreign currency forward contracts 2 1 6 2 Total $ 101 $ 13 $ 6 $ 2 (1) All asset derivatives are recorded in prepaid expenses and other assets and all liability derivatives are recorded in accrued liabilities in the accompanying unaudited condensed consolidated balance sheets. During the three and six months ended June 30, 2022, the Company recognized gains of $21 million and $65 million, respectively, on interest rate instruments which were recorded in vehicle interest expense, net in the accompanying unaudited condensed consolidated statements of operations for the three and six months ended June 30, 2022. The amounts recognized in income for derivative instruments were not material for the three and six months ended June 30, 2021. The Company's foreign currency forward contracts and certain interest rate instruments are subject to enforceable master netting agreements with their counterparties. The Company does not offset such derivative assets and liabilities in its unaudited condensed consolidated balance sheets, and the potential effect of the Company’s use of the master netting arrangements is not material. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value MeasurementsUnder U.S. GAAP, entities are allowed to measure certain financial instruments and other items at fair value. The Company has not elected the fair value measurement option for any of its assets or liabilities that meet the criteria for this option. Irrespective of the fair value option previously described, U.S. GAAP requires certain financial and non-financial assets and liabilities of the Company to be measured on either a recurring basis or on a nonrecurring basis. 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. Debt Obligations The fair value of the debt facilities 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). June 30, 2022 December 31, 2021 (In millions) Nominal Unpaid Principal Balance Aggregate Fair Value Nominal Unpaid Principal Balance Aggregate Fair Value Non-Vehicle Debt $ 3,045 $ 2,642 $ 3,055 $ 3,065 Vehicle Debt 10,462 9,939 7,954 7,908 Total $ 13,507 $ 12,581 $ 11,009 $ 10,973 Assets and Liabilities Measured at Fair Value on a Recurring Basis The following table summarizes the Company's cash equivalents, restricted cash equivalents and Public Warrants that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy as follows: June 30, 2022 December 31, 2021 (In millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Cash equivalents and restricted cash equivalents $ 794 $ — $ — $ 794 $ 1,678 $ — $ — $ 1,678 Liabilities: Public Warrants $ 811 $ — $ — $ 811 $ 1,324 $ — $ — $ 1,324 Cash Equival ents and Restricted Cash Equivalents 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). Public Warrants Hertz Global's Public Warrants are classified as liabilities and recorded at fair value in the accompanying unaudited condensed consolidated balance sheets as of June 30, 2022 and December 31, 2021 in accordance with the provisions of ASC 480, Distinguishing Liabilities from Equity . See Note 8, "Public Warrants, Equity and Earnings (Loss) Per Common Share – Hertz Global," for additional information. The Company calculates the fair value based on the end-of-day quoted market price, a Level 1 input of the fair value hierarchy. For the three and six months ended June 30, 2022, the fair value adjustments were gains of $461 million and $511 million, respectively, and are recorded in change in fair value of Public Warrants in the accompanying unaudited condensed consolidated statements of operations for Hertz Global for the three and six months ended June 30, 2022. Financial Instruments The fair value of the Company's financial instruments as of June 30, 2022 and December 31, 2021 are disclosed in Note 10, "Financial Instruments." The Company's financial instruments are classified as Level 2 assets and liabilities and are priced using quoted market prices for similar assets or liabilities in active markets. |
Contingencies and Off-Balance S
Contingencies and Off-Balance Sheet Commitments | 6 Months Ended |
Jun. 30, 2022 | |
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 June 30, 2022 and December 31, 2021, the Company's liability recorded for self-insured liabilities is $470 million and $463 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 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. The Company has summarized below the material legal proceedings to which the Company was a party during the three and six months ended June 30, 2022 or the period after June 30, 2022, but before the filing of this Quarterly Report. Make-Whole and Post-Petition Interest Claims - On July 1, 2021, Wells Fargo Bank, N.A., in its capacity as indenture trustee of (1) 6.250% Unsecured Notes due 2022 (the "2022 Notes"), (2) 5.500% Unsecured Notes due 2024 (the "2024 Notes"), (3) 7.125% Unsecured Notes due 2026 (the "2026 Notes"), and (4) 6.000% Unsecured Notes due 2028 (the "2028 Notes") issued by The Hertz Corporation (collectively, the “Notes”), filed a complaint (the “Complaint”) against The Hertz Corporation and multiple direct and indirect subsidiaries thereof (collectively referred to in this summary as “Defendants”). The filing of the Complaint initiated the adversary proceeding captioned Wells Fargo Bank, National Association v. The Hertz Corporation, et al. pending in the United States Bankruptcy Court for the District of Delaware, Adv. Pro. No. 21-50995 (MFW). The Complaint seeks a declaratory judgment that the holders of the Unsecured Notes are entitled to payment of certain redemption premiums and post-petition interest that they assert total $271,684,720 plus interest at the contractual default rate or, in the alternative, are entitled to payment of post-petition interest at a contractual rate that they assert totals $124,512,653 plus interest. On August 2, 2021, the Defendants filed a motion to dismiss Wells Fargo's claims. On December 22, 2021, the Bankruptcy Court dismissed Wells Fargo’s claims with respect to (i) the redemption premium allegedly owed on the 2022 and 2024 Notes and (ii) post-petition interest at the contract rate. Wells Fargo’s claims for a redemption premium with respect to the 2026 and 2028 Senior Notes remain. Note holders that elected to participate in the rights offering held in June 2021 (the "2021 Rights Offering") waived their right to collect on the redemption premium. Therefore, since some of the 2026 and 2028 note holders elected to participate in the 2021 Rights Offering, the total amount which may be owed with respect to the asserted redemption premium for those series of notes will be reduced. On February 25, 2022, the Defendants answered the Complaint. The parties intend to submit cross-motions for summary judgment and have agreed to a schedule with respect to those motions. The Defendants intend to vigorously defend against the claims in this matter. The Company cannot predict the outcome or timing of this litigation. Claims Relating to Alleged False Arrests - As a large company, we are subject to various proceedings, lawsuits, disputes, inquiries, and claims arising in the ordinary course of our business. One series of claims involves claimants seeking monetary damages from the Company in the Bankruptcy Court and Delaware Superior Court in connection with allegations that police detained or arrested them in error after the Company reported their rental cars as stolen. These claims arise from actions allegedly taken by the Company prior to emergence from its bankruptcy reorganization. The overwhelming majority of these cases involve vehicles that were not returned to the Company within a reasonable time period following their contracted return date. These claims have been the subject of press coverage and the Company has received inquiries on the matter from certain elected officials. The Company will continue to defend itself as appropriate and has established policies to help ensure proper treatment of its customers as well as to prosecute those involved in the theft of services or assets of the Company. The Company has made settlement offers to certain claimants, and may continue to do so from time to time in the future. We currently believe that the eventual outcome of these claims will not have a materially adverse effect on the Company’s business, financial condition, results of operations or cash flows. In addition, in May 2022, the Company filed a complaint against several of its insurers seeking a determination of its rights under its commercial general liability, and directors and officers liability, insurance policies for these alleged claims in a declaratory judgment action pending in Delaware Superior Court, captioned Hertz Global Holdings, Inc. et al. v. ACE American Insurance Co. et al., C.A. No. N22C-05-130 MMJ (CCLD). 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 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 former executives Mark Frissora, Elyse Douglas and John Jefferey Zimmerman on March 25, 2019, and in state court in Florida against former executive Scott Sider on March 28, 2019. 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 former Hertz Global Holdings, Inc. ("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 an 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. 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 remaining 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. The Florida action is now closed. On December 29, 2021, the Company entered into a settlement agreement with Jeff Zimmerman, leaving Mark Frissora as the sole remaining defendant in this litigation. Fact and expert discovery have now been completed in the New Jersey action with competing dispositive motions due by September 30, 2022. Pursuant to the agreements governing the separation of Herc Holdings Inc. from Hertz Global that occurred on June 30, 2016, Herc Holdings Inc. is entitled to 15% of the net proceeds of any repayment or recovery from these cases. Indemnification Obligations In the ordinary course of business, the Company has executed contracts involving indemnification obligations customary in the rental car 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 separation of the rental car business from the equipment rental business in 2016, the Company executed an agreement with Herc Holdings Inc. 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 | 6 Months Ended |
Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Transactions and Agreements between Hertz Holdings and Hertz In May 2021, upon expiration of a loan originated in May 2020 between Hertz Holdings and Hertz, Hertz entered into a new master loan agreement with Hertz Holdings for a facility size of $25 million with an expiration in May 2022 (the "2021 Master Loan"). The interest rate was based on the U.S. Dollar LIBOR rate plus a margin. The 2021 Master Loan expired according to its terms and accordingly, as of June 30, 2022, there is no outstanding balance under the 2021 Master 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 a related party until May 2020, the option to acquire certain vehicles from Hertz. During the three and six months ended June 30, 2021, 767 distributed $5 million and $15 million, respectively, to American Entertainment Properties Corp. along with the return of certain vehicles. The 767 Lease Agreement was terminated effective October 31, 2021. Prior to the termination of the 767 Lease Agreement, the Company determined that it was the primary beneficiary of 767 due to its power to direct the activities of 767 that most significantly impacted 767's economic performance and the Company's obligation to absorb 25% of 767's gains/losses and, accordingly, 767 was consolidated by the Company as a VIE. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | Segment InformationThe Company’s chief operating decision maker ("CODM") assesses performance and allocates resources based upon the financial information for the Company’s reportable segments. The Company has identified two reportable segments, which are consistent with its operating segments and organized based on the products and services provided and the geographic areas in which business is conducted, as follows: • Americas RAC – rental of vehicles (cars, crossovers, vans and light trucks), as well as sales of value-added services, in the U.S., Canada, Latin America and the Caribbean; and • International RAC – rental and leasing of vehicles (cars, crossovers, vans and light trucks), as well as sales of value-added services internationally and consists primarily of the Company's Europe and other international locations. In the second quarter of 2021, as a result of the Donlen Sale, as disclosed in Note 3, "Divestitures," the All Other Operations reportable segment, which consisted primarily of the Company's former Donlen business, was no longer deemed a reportable segment. In addition to its reportable segments and other operating activities, 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 statement 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 June 30, Six Months Ended June 30, (In millions) 2022 2021 2022 2021 Revenues Americas RAC $ 1,973 $ 1,643 $ 3,531 $ 2,610 International RAC 371 230 623 415 Total reportable segments 2,344 1,873 4,154 3,025 All other operations (1) — — — 136 Total Hertz Global and Hertz $ 2,344 $ 1,873 $ 4,154 $ 3,161 Depreciation of revenue earning vehicles and lease charges, net Americas RAC $ 61 $ 80 $ (32) $ 290 International RAC 45 36 79 69 Total Hertz Global and Hertz $ 106 $ 116 $ 47 $ 359 Adjusted EBITDA Americas RAC $ 770 $ 664 $ 1,411 $ 690 International RAC 92 (1) 119 (9) Total reportable segments 862 663 1,530 681 All other operations (1) — — — 13 Corporate (98) (24) (152) (52) Total Hertz Global and Hertz $ 764 $ 639 $ 1,378 $ 642 (1) Substantially comprised of the Company's Donlen business, which was sold on March 30, 2021 as disclosed in Note 3, "Divestitures." As of (In millions) June 30, 2022 December 31, 2021 Revenue earning vehicles, net Americas RAC $ 10,728 $ 7,897 International RAC 1,602 1,329 Total Hertz Global and Hertz $ 12,330 $ 9,226 Total assets Americas RAC $ 17,197 $ 14,352 International RAC 3,245 2,978 Total reportable segments 20,442 17,330 Corporate 1,624 2,453 Total Hertz Global (1) 22,066 19,783 Corporate - Hertz (1) (3) Total Hertz (1) $ 22,065 $ 19,780 (1) The consolidated total assets of Hertz Global and Hertz as of June 30, 2022 and December 31, 2021 include total assets of VIEs of $838 million and $734 million, respectively, which can only be used to settle obligations of the VIEs. See "Pledges Related to Vehicle Financing" in Note 5, "Debt," for further information. Reconciliations of Adjusted EBITDA by reportable segment to consolidated amounts are summarized below: Hertz Global Three Months Ended Six Months Ended (In millions) 2022 2021 2022 2021 Adjusted EBITDA: Americas RAC $ 770 $ 664 $ 1,411 $ 690 International RAC 92 (1) 119 (9) Total reportable segments 862 663 1,530 681 All other operations (1) — — — 13 Corporate (2) (98) (24) (152) (52) Total Hertz Global 764 639 1,378 642 Adjustments: Non-vehicle depreciation and amortization (36) (50) (69) (104) Non-vehicle debt interest, net (3) (41) (91) (80) (135) Vehicle debt-related charges (4) (9) (26) (16) (54) Restructuring and restructuring related charges (5) (15) (37) (21) (50) Reorganization items, net (6) — (633) — (677) Pre-reorganization charges and non-debtor financing charges (7) — (17) — (40) Gain from the Donlen Sale (8) — 8 — 400 Change in fair value of Public Warrants (9) 461 — 511 — Unrealized gains (losses) on financial instruments (10) 21 — 65 — Other items (11) (26) (8) (93) 70 Income (loss) before income taxes $ 1,119 $ (215) $ 1,675 $ 52 Hertz Three Months Ended Six Months Ended (In millions) 2022 2021 2022 2021 Adjusted EBITDA: Americas RAC $ 770 $ 664 $ 1,411 $ 690 International RAC 92 (1) 119 (9) Total reportable segments 862 663 1,530 681 All other operations (1) — — — 13 Corporate (2) (98) (24) (152) (52) Total Hertz 764 639 1,378 642 Adjustments: Non-vehicle depreciation and amortization (36) (50) (69) (104) Non-vehicle debt interest, net (3) (41) (91) (80) (135) Vehicle debt-related charges (4) (9) (26) (16) (54) Restructuring and restructuring related charges (5) (15) (37) (21) (50) Reorganization items, net (6) — (469) — (513) Pre-reorganization charges and non-debtor financing charges (7) — (17) — (40) Gain from the Donlen Sale (8) — 8 — 400 Unrealized gains (losses) on financial instruments (10) 21 — 65 — Other items (11) (26) (8) (93) 70 Income (loss) before income taxes $ 658 $ (51) $ 1,164 $ 216 (1) Substantially 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) In 2021, includes $8 million of loss on extinguishment of debt associated with the payoff and termination of the HIL Credit Agreement resulting from the implementation of the Plan of Reorganization. (4) Represents vehicle debt-related charges relating to the amortization of deferred financing costs and debt discounts and premiums. (5) Represents charges incurred under restructuring actions as defined in U.S. GAAP. Also includes restructuring related charges such as incremental costs incurred directly supporting business transformation initiatives. (6) Represents charges incurred associated with the filing of and the emergence from the Chapter 11 Cases, as disclosed in Note 15, "Reorganization Items, Net." (7) Represents charges incurred prior to the filing of the Chapter 11 Cases 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 the change in fair value during the reporting period for the Company's outstanding Public Warrants. (10) Represents unrealized gains (losses) on derivative financial instruments. See Note 10, "Financial Instruments." (11) Represents miscellaneous items. For the three and six months ended June 30, 2022, primarily includes bankruptcy claims, certain professional fees and charges related to the settlement of bankruptcy claims and certain non-cash stock-based compensation charges. For the three and six months ended June 30, 2021, includes $100 million associated with the suspension of depreciation during the first quarter for the Donlen business while classified as held for sale, partially offset by letter of credit fees recorded in the first half of the year and charges for a multiemployer pension plan withdrawal liability recorded in the first quarter. |
Reorganization Items, Net
Reorganization Items, Net | 6 Months Ended |
Jun. 30, 2022 | |
Reorganizations [Abstract] | |
Reorganization Items, Net | Reorganization Items, NetThe Debtors incurred incremental costs as a result of the Chapter 11 Cases and settlement of liabilities under the Plan of Reorganization which were recorded as reorganization items, net in the accompanying unaudited condensed consolidated statements of operations for the three and six months ended June 30, 2021. The following tables summarize reorganization items, net: Hertz Global (In millions) Three Months Ended Six Months Ended Professional fees and other bankruptcy related costs $ 199 $ 257 Loss on extinguishment of debt (1) 191 191 Backstop fee 164 164 Breakup fee (2) 77 77 Contract settlements 25 25 Cancellation of share-based compensation grants (3) (10) (10) Net gain on settlement of liabilities subject to compromise (11) (22) Other, net (2) (5) Reorganization items, net $ 633 $ 677 Hertz (In millions) Three Months Ended Six Months Ended Professional fees and other bankruptcy related costs $ 199 $ 257 Loss on extinguishment of debt (1) 191 191 Breakup fee (2) 77 77 Contract settlements 25 25 Cancellation of share-based compensation grants (3) (10) (10) Net gain on settlement of liabilities subject to compromise (11) (22) Other, net (2) (5) Reorganization items, net $ 469 $ 513 (1) Includes loss on extinguishment of debt resulting from the implementation of the Plan of Reorganization. Primarily composed of write offs of unamortized deferred loan origination costs and early termination fees associated with terminated debt agreements. (2) Breakup fee paid to prior plan sponsors and certain of their respective affiliates and certain holders of the senior notes upon emergence from Chapter 11 in accordance with an equity purchase and commitment agreement entered into on April 3, 2021, which was subsequently terminated. (3) On June 30, 2021, in accordance with the Plan of Reorganization, all outstanding equity awards under the then-existing incentive plan (the "Omnibus Plan") were cancelled without any distribution and the Omnibus Plan was deemed to be cancelled. As a result of the equity awards cancellations, the Company recognized $10 million related to the unrecognized portion of share-based compensation in reorganization expense in the accompanying unaudited condensed consolidated statements of operations for the three and six months ended June 30, 2021. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation This Quarterly Report on Form 10-Q combines the quarterly reports on Form 10-Q for the quarterly period ended June 30, 2022 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. Certain charges related to the Chapter 11 Cases were recorded as reorganization items, net in the accompanying unaudited condensed consolidated statements of operations for the three and six months ended June 30, 2021 pursuant to the provisions of Accounting Standards Codification (“ASC”) 852, Reorganizations . See Note 15, "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, 2021 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 |
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. |
Revenue Earning Vehicles (Table
Revenue Earning Vehicles (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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) June 30, December 31, Revenue earning vehicles $ 13,477 $ 10,506 Less accumulated depreciation (1,525) (1,518) 11,952 8,988 Revenue earning vehicles held for sale, net (1) 378 238 Revenue earning vehicles, net $ 12,330 $ 9,226 (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. |
Schedule of Depreciation of Revenue Earning Vehicles and Lease Charges | Depreciation of revenue earning vehicles and lease charges, net includes the following: Three Months Ended June 30, Six Months Ended June 30, (In millions) 2022 2021 2022 2021 Depreciation of revenue earning vehicles $ 432 $ 167 $ 754 $ 432 (Gain) loss on disposal of revenue earning vehicles (331) (60) (718) (93) Rents paid for vehicles leased 5 9 11 20 Depreciation of revenue earning vehicles and lease charges, net $ 106 $ 116 $ 47 $ 359 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Components of Debt | The Company's debt, including its available credit facilities, consists of the following ($ in millions) as of June 30, 2022 and December 31, 2021: Facility Weighted-Average Interest Rate Fixed or Maturity June 30, December 31, Non-Vehicle Debt Term B Loan 4.33% Floating 6/2028 $ 1,287 $ 1,294 Term C Loan 4.33% Floating 6/2028 245 245 Senior Notes Due 2026 4.63% Fixed 12/2026 500 500 Senior Notes Due 2029 5.00% Fixed 12/2029 1,000 1,000 First Lien RCF N/A Floating 6/2026 — — Other Non-Vehicle Debt (1) 7.98% Fixed Various 13 16 Unamortized Debt Issuance Costs and Net (Discount) Premium (64) (69) Total Non-Vehicle Debt 2,981 2,986 Vehicle Debt HVF III U.S. ABS Program HVF III U.S. Vehicle Variable Funding Notes HVF III Series 2021-A Class A (2) 2.88% Floating 6/2024 2,273 2,813 HVF III Series 2021-A Class B (2) 3.65% Fixed 6/2023 188 188 2,461 3,001 HVF III U.S. Vehicle Medium Term Notes HVF III Series 2021-1 (2) 1.66% Fixed 12/2024 2,000 2,000 HVF III Series 2021-2 (2) 2.12% Fixed 12/2026 2,000 2,000 HVF III Series 2022-1 (2) 2.07% Fixed 6/2025 653 — HVF III Series 2022-2 (2) 2.42% Fixed 6/2027 653 — HVF III Series 2022-3 (2) 3.53% Fixed 3/2024 333 — HVF III Series 2022-4 (2) 3.87% Fixed 9/2025 580 — HVF III Series 2022-5 (2) 4.03% Fixed 9/2027 317 — 6,536 4,000 Vehicle Debt - Other Repurchase Facility 3.03% Fixed 7/2022 236 — European ABS (2) 1.80% Floating 10/2023 510 395 Hertz Canadian Securitization (2) 3.77% Floating 6/2024 326 191 Australian Securitization (2) 2.74% Floating 4/2024 140 128 New Zealand RCF 5.12% Floating 6/2024 37 39 U.K. Financing Facility 4.75% Floating 7/2022-6/2026 107 98 U.K. Toyota Financing Facility 2.20% Floating 8/2022-2/2023 27 9 Other Vehicle Debt 2.93% Floating 7/2022-4/2025 82 93 1,465 953 Facility Weighted-Average Interest Rate Fixed or Maturity June 30, December 31, Unamortized Debt Issuance Costs and Net (Discount) Premium (51) (33) Total Vehicle Debt 10,411 7,921 Total Debt $ 13,392 $ 10,907 (1) Other non-vehicle debt is primarily comprised of $9 million and $12 million in finance lease obligations (2) Maturity reference is to the earlier "expected final maturity date" as opposed to the subsequent "legal final maturity date." The expected final maturity date is the date by which Hertz and investors in the relevant indebtedness originally expect the outstanding principal of the relevant indebtedness to be repaid in full. The legal final maturity date is the date on which the outstanding principal of the relevant indebtedness is legally due and payable in full. June 30, 2022 December 31, 2021 (In millions) Nominal Unpaid Principal Balance Aggregate Fair Value Nominal Unpaid Principal Balance Aggregate Fair Value Non-Vehicle Debt $ 3,045 $ 2,642 $ 3,055 $ 3,065 Vehicle Debt 10,462 9,939 7,954 7,908 Total $ 13,507 $ 12,581 $ 11,009 $ 10,973 |
Schedule of Extinguishment of Debt | (In millions) Aggregate Principal Amount HVF III Series 2022-1 Class D Notes $ 98 HVF III Series 2022-2 Class D Notes 98 HVF III Series 2022-3 Class D Notes 50 HVF III Series 2022-4 Class D Notes 87 HVF III Series 2022-5 Class D Notes 47 Total $ 380 |
Schedule of Facilities Available for the Use of the Company and Subsidiaries | The following facilities were available to the Company as of June 30, 2022 and are presented net of any outstanding letters of credit: (In millions) Remaining Availability Under Non-Vehicle Debt First Lien RCF $ 1,449 $ 1,449 Total Non-Vehicle Debt 1,449 1,449 Vehicle Debt HVF III Series 2021-A 1,383 — European ABS 279 — Hertz Canadian Securitization 23 — Australian Securitization 33 — U.K. Financing Facility 14 — U.K. Toyota Financing Facility 3 — Total Vehicle Debt 1,735 — Total $ 3,184 $ 1,449 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Leases [Abstract] | |
Operating Lease, Lease Income | Three Months Ended Six Months Ended (In millions) 2022 2021 2022 2021 Operating lease income from vehicle rentals $ 2,226 $ 1,798 $ 3,947 $ 2,896 Operating lease income from fleet leasing — — — 149 Variable operating lease income 57 39 101 40 Revenue accounted for under Topic 842 2,283 1,837 4,048 3,085 Revenue accounted for under Topic 606 61 36 106 76 Total revenues $ 2,344 $ 1,873 $ 4,154 $ 3,161 |
Public Warrants, Equity and E_2
Public Warrants, Equity and Earnings (Loss) Per Common Share – Hertz Global (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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 common share: Three Months Ended Six Months Ended (In millions, except per share data) (1) 2022 2021 2022 2021 Numerator: Net income (loss) attributable and available to Hertz Global common stockholders, basic $ 940 $ (168) $ 1,366 $ 21 Change in fair value of Public Warrants (461) — (511) — Net income (loss) available to Hertz Global common stockholders, diluted $ 479 $ (168) $ 856 $ 21 Denominator: Basic weighted-average common shares outstanding 398 160 415 158 Dilutive effect of stock options, RSUs and PSUs 1 — 1 — Dilutive effect of Public Warrants 25 — 27 — Diluted weighted-average shares outstanding 424 160 443 158 Antidilutive stock options, RSUs and PSUs 7 1 6 1 Total antidilutive 7 1 6 1 Earnings (loss) per common share: Basic $ 2.36 $ (1.05) $ 3.29 $ 0.13 Diluted $ 1.13 $ (1.05) $ 1.93 $ 0.13 (1) The table above is denoted in millions, excluding earnings (loss) per common share. Amounts are calculated from the underlying numbers in thousands, and as a result, may not agree to the amounts shown in the table when calculated in millions. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Stock Option Activity | A summary of stock option activity for the first half of 2022 is presented below: Options Shares Weighted- Weighted- Aggregate Intrinsic Outstanding as of December 31, 2021 3,678,855 $ 26.17 9.9 $ — Granted — — — — Exercised — — — — Forfeited or Expired (244,640) 26.17 — — Outstanding as of June 30, 2022 3,434,215 — 9.4 — Exercisable as of June 30, 2022 (206,440) 26.17 9.4 — Non-vested as of June 30, 2022 3,227,775 |
Summary of PSU Activity | A summary of the PSU activity for the first half of 2022 is presented below: Shares Weighted- Aggregate Intrinsic Outstanding as of December 31, 2021 — $ — $ — Granted 9,928,917 17.73 — Vested — — — Forfeited or Expired (19,029) 22.02 — Outstanding as of June 30, 2022 9,909,888 17.72 157 |
Schedule of Valuation Assumptions | Certain of these PSUs were valued on the grant date using a Monte Carlo simulation model that incorporates the assumptions noted in the following table: Grants Assumption 2022 Expected volatility 68 % Expected dividend yield — % Expected term (years) 5 Risk-free interest rate 1.71 % Weighted-average grant date fair value $ 17.61 |
Summary of RSU Activity | A summary of RSU activity for the first half of 2022 is presented below: Shares Weighted- Aggregate Intrinsic Outstanding as of December 31, 2021 1,726,286 $ 26.17 $ 43 Granted 3,353,698 20.60 — Vested (568,812) 26.17 — Forfeited or Expired (119,604) 24.85 — Outstanding as of June 30, 2022 4,391,568 21.95 70 Additional information pertaining to RSU activity is as follows: Six Months Ended 2022 Total fair value of awards that vested (in millions) $ 15 Weighted-average grant-date fair value of awards granted $ 20.60 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Fair Value of Financial Instruments | The following table summarizes the estimated fair value of financial instruments: Fair Value of Financial Instruments Asset Derivatives (1) Liability Derivatives (1) (In millions) June 30, 2022 December 31, 2021 June 30, 2022 December 31, 2021 Interest rate instruments $ 99 $ 12 $ — $ — Foreign currency forward contracts 2 1 6 2 Total $ 101 $ 13 $ 6 $ 2 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Components of Debt | The Company's debt, including its available credit facilities, consists of the following ($ in millions) as of June 30, 2022 and December 31, 2021: Facility Weighted-Average Interest Rate Fixed or Maturity June 30, December 31, Non-Vehicle Debt Term B Loan 4.33% Floating 6/2028 $ 1,287 $ 1,294 Term C Loan 4.33% Floating 6/2028 245 245 Senior Notes Due 2026 4.63% Fixed 12/2026 500 500 Senior Notes Due 2029 5.00% Fixed 12/2029 1,000 1,000 First Lien RCF N/A Floating 6/2026 — — Other Non-Vehicle Debt (1) 7.98% Fixed Various 13 16 Unamortized Debt Issuance Costs and Net (Discount) Premium (64) (69) Total Non-Vehicle Debt 2,981 2,986 Vehicle Debt HVF III U.S. ABS Program HVF III U.S. Vehicle Variable Funding Notes HVF III Series 2021-A Class A (2) 2.88% Floating 6/2024 2,273 2,813 HVF III Series 2021-A Class B (2) 3.65% Fixed 6/2023 188 188 2,461 3,001 HVF III U.S. Vehicle Medium Term Notes HVF III Series 2021-1 (2) 1.66% Fixed 12/2024 2,000 2,000 HVF III Series 2021-2 (2) 2.12% Fixed 12/2026 2,000 2,000 HVF III Series 2022-1 (2) 2.07% Fixed 6/2025 653 — HVF III Series 2022-2 (2) 2.42% Fixed 6/2027 653 — HVF III Series 2022-3 (2) 3.53% Fixed 3/2024 333 — HVF III Series 2022-4 (2) 3.87% Fixed 9/2025 580 — HVF III Series 2022-5 (2) 4.03% Fixed 9/2027 317 — 6,536 4,000 Vehicle Debt - Other Repurchase Facility 3.03% Fixed 7/2022 236 — European ABS (2) 1.80% Floating 10/2023 510 395 Hertz Canadian Securitization (2) 3.77% Floating 6/2024 326 191 Australian Securitization (2) 2.74% Floating 4/2024 140 128 New Zealand RCF 5.12% Floating 6/2024 37 39 U.K. Financing Facility 4.75% Floating 7/2022-6/2026 107 98 U.K. Toyota Financing Facility 2.20% Floating 8/2022-2/2023 27 9 Other Vehicle Debt 2.93% Floating 7/2022-4/2025 82 93 1,465 953 Facility Weighted-Average Interest Rate Fixed or Maturity June 30, December 31, Unamortized Debt Issuance Costs and Net (Discount) Premium (51) (33) Total Vehicle Debt 10,411 7,921 Total Debt $ 13,392 $ 10,907 (1) Other non-vehicle debt is primarily comprised of $9 million and $12 million in finance lease obligations (2) Maturity reference is to the earlier "expected final maturity date" as opposed to the subsequent "legal final maturity date." The expected final maturity date is the date by which Hertz and investors in the relevant indebtedness originally expect the outstanding principal of the relevant indebtedness to be repaid in full. The legal final maturity date is the date on which the outstanding principal of the relevant indebtedness is legally due and payable in full. June 30, 2022 December 31, 2021 (In millions) Nominal Unpaid Principal Balance Aggregate Fair Value Nominal Unpaid Principal Balance Aggregate Fair Value Non-Vehicle Debt $ 3,045 $ 2,642 $ 3,055 $ 3,065 Vehicle Debt 10,462 9,939 7,954 7,908 Total $ 13,507 $ 12,581 $ 11,009 $ 10,973 |
Fair Value Measurements, Recurring and Nonrecurring | The following table summarizes the Company's cash equivalents, restricted cash equivalents and Public Warrants that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy as follows: June 30, 2022 December 31, 2021 (In millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Cash equivalents and restricted cash equivalents $ 794 $ — $ — $ 794 $ 1,678 $ — $ — $ 1,678 Liabilities: Public Warrants $ 811 $ — $ — $ 811 $ 1,324 $ — $ — $ 1,324 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Three Months Ended June 30, Six Months Ended June 30, (In millions) 2022 2021 2022 2021 Revenues Americas RAC $ 1,973 $ 1,643 $ 3,531 $ 2,610 International RAC 371 230 623 415 Total reportable segments 2,344 1,873 4,154 3,025 All other operations (1) — — — 136 Total Hertz Global and Hertz $ 2,344 $ 1,873 $ 4,154 $ 3,161 Depreciation of revenue earning vehicles and lease charges, net Americas RAC $ 61 $ 80 $ (32) $ 290 International RAC 45 36 79 69 Total Hertz Global and Hertz $ 106 $ 116 $ 47 $ 359 Adjusted EBITDA Americas RAC $ 770 $ 664 $ 1,411 $ 690 International RAC 92 (1) 119 (9) Total reportable segments 862 663 1,530 681 All other operations (1) — — — 13 Corporate (98) (24) (152) (52) Total Hertz Global and Hertz $ 764 $ 639 $ 1,378 $ 642 (1) Substantially comprised of the Company's Donlen business, which was sold on March 30, 2021 as disclosed in Note 3, "Divestitures." As of (In millions) June 30, 2022 December 31, 2021 Revenue earning vehicles, net Americas RAC $ 10,728 $ 7,897 International RAC 1,602 1,329 Total Hertz Global and Hertz $ 12,330 $ 9,226 Total assets Americas RAC $ 17,197 $ 14,352 International RAC 3,245 2,978 Total reportable segments 20,442 17,330 Corporate 1,624 2,453 Total Hertz Global (1) 22,066 19,783 Corporate - Hertz (1) (3) Total Hertz (1) $ 22,065 $ 19,780 (1) The consolidated total assets of Hertz Global and Hertz as of June 30, 2022 and December 31, 2021 include total assets of VIEs of $838 million and $734 million, respectively, which can only be used to settle obligations of the VIEs. See "Pledges Related to Vehicle Financing" in Note 5, "Debt," for further information. Reconciliations of Adjusted EBITDA by reportable segment to consolidated amounts are summarized below: Hertz Global Three Months Ended Six Months Ended (In millions) 2022 2021 2022 2021 Adjusted EBITDA: Americas RAC $ 770 $ 664 $ 1,411 $ 690 International RAC 92 (1) 119 (9) Total reportable segments 862 663 1,530 681 All other operations (1) — — — 13 Corporate (2) (98) (24) (152) (52) Total Hertz Global 764 639 1,378 642 Adjustments: Non-vehicle depreciation and amortization (36) (50) (69) (104) Non-vehicle debt interest, net (3) (41) (91) (80) (135) Vehicle debt-related charges (4) (9) (26) (16) (54) Restructuring and restructuring related charges (5) (15) (37) (21) (50) Reorganization items, net (6) — (633) — (677) Pre-reorganization charges and non-debtor financing charges (7) — (17) — (40) Gain from the Donlen Sale (8) — 8 — 400 Change in fair value of Public Warrants (9) 461 — 511 — Unrealized gains (losses) on financial instruments (10) 21 — 65 — Other items (11) (26) (8) (93) 70 Income (loss) before income taxes $ 1,119 $ (215) $ 1,675 $ 52 Hertz Three Months Ended Six Months Ended (In millions) 2022 2021 2022 2021 Adjusted EBITDA: Americas RAC $ 770 $ 664 $ 1,411 $ 690 International RAC 92 (1) 119 (9) Total reportable segments 862 663 1,530 681 All other operations (1) — — — 13 Corporate (2) (98) (24) (152) (52) Total Hertz 764 639 1,378 642 Adjustments: Non-vehicle depreciation and amortization (36) (50) (69) (104) Non-vehicle debt interest, net (3) (41) (91) (80) (135) Vehicle debt-related charges (4) (9) (26) (16) (54) Restructuring and restructuring related charges (5) (15) (37) (21) (50) Reorganization items, net (6) — (469) — (513) Pre-reorganization charges and non-debtor financing charges (7) — (17) — (40) Gain from the Donlen Sale (8) — 8 — 400 Unrealized gains (losses) on financial instruments (10) 21 — 65 — Other items (11) (26) (8) (93) 70 Income (loss) before income taxes $ 658 $ (51) $ 1,164 $ 216 (1) Substantially 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) In 2021, includes $8 million of loss on extinguishment of debt associated with the payoff and termination of the HIL Credit Agreement resulting from the implementation of the Plan of Reorganization. (4) Represents vehicle debt-related charges relating to the amortization of deferred financing costs and debt discounts and premiums. (5) Represents charges incurred under restructuring actions as defined in U.S. GAAP. Also includes restructuring related charges such as incremental costs incurred directly supporting business transformation initiatives. (6) Represents charges incurred associated with the filing of and the emergence from the Chapter 11 Cases, as disclosed in Note 15, "Reorganization Items, Net." (7) Represents charges incurred prior to the filing of the Chapter 11 Cases 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 the change in fair value during the reporting period for the Company's outstanding Public Warrants. (10) Represents unrealized gains (losses) on derivative financial instruments. See Note 10, "Financial Instruments." (11) Represents miscellaneous items. For the three and six months ended June 30, 2022, primarily includes bankruptcy claims, certain professional fees and charges related to the settlement of bankruptcy claims and certain non-cash stock-based compensation charges. For the three and six months ended June 30, 2021, includes $100 million associated with the suspension of depreciation during the first quarter for the Donlen business while classified as held for sale, partially offset by letter of credit fees recorded in the first half of the year and charges for a multiemployer pension plan withdrawal liability recorded in the first quarter. |
Reorganization Items, Net (Tabl
Reorganization Items, Net (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Reorganizations [Abstract] | |
Schedule of Reorganization Items, Net | The following tables summarize reorganization items, net: Hertz Global (In millions) Three Months Ended Six Months Ended Professional fees and other bankruptcy related costs $ 199 $ 257 Loss on extinguishment of debt (1) 191 191 Backstop fee 164 164 Breakup fee (2) 77 77 Contract settlements 25 25 Cancellation of share-based compensation grants (3) (10) (10) Net gain on settlement of liabilities subject to compromise (11) (22) Other, net (2) (5) Reorganization items, net $ 633 $ 677 Hertz (In millions) Three Months Ended Six Months Ended Professional fees and other bankruptcy related costs $ 199 $ 257 Loss on extinguishment of debt (1) 191 191 Breakup fee (2) 77 77 Contract settlements 25 25 Cancellation of share-based compensation grants (3) (10) (10) Net gain on settlement of liabilities subject to compromise (11) (22) Other, net (2) (5) Reorganization items, net $ 469 $ 513 (1) Includes loss on extinguishment of debt resulting from the implementation of the Plan of Reorganization. Primarily composed of write offs of unamortized deferred loan origination costs and early termination fees associated with terminated debt agreements. (2) Breakup fee paid to prior plan sponsors and certain of their respective affiliates and certain holders of the senior notes upon emergence from Chapter 11 in accordance with an equity purchase and commitment agreement entered into on April 3, 2021, which was subsequently terminated. (3) On June 30, 2021, in accordance with the Plan of Reorganization, all outstanding equity awards under the then-existing incentive plan (the "Omnibus Plan") were cancelled without any distribution and the Omnibus Plan was deemed to be cancelled. As a result of the equity awards cancellations, the Company recognized $10 million related to the unrecognized portion of share-based compensation in reorganization expense in the accompanying unaudited condensed consolidated statements of operations for the three and six months ended June 30, 2021. |
Divestitures (Details)
Divestitures (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
(Gain) from the sale of a business | $ 0 | $ 8 | $ 0 | $ 400 | |
Proceeds from the sale of a business, net of cash sold | 0 | 818 | |||
Receivables, net | $ 975 | $ 975 | $ 758 | ||
Donlen Corporation | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Proceeds from the sale of a business, net of cash sold | 891 | 891 | |||
Assets held for sale | 543 | 543 | |||
Donlen Corporation | Prepaid Expenses and Other Current Assets | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Receivables, net | $ 53 | $ 53 |
Revenue Earning Vehicles - Comp
Revenue Earning Vehicles - Components of Revenue Earning Vehicles (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Abstract] | ||
Revenue earning vehicles | $ 13,477 | $ 10,506 |
Less accumulated depreciation | (1,525) | (1,518) |
Property subject to available for operating lease excluding assets held for sale | 11,952 | 8,988 |
Revenue earning vehicles, net | 378 | 238 |
Total revenue earning vehicles, net | $ 12,330 | $ 9,226 |
Revenue Earning Vehicles - Sche
Revenue Earning Vehicles - Schedule of Depreciation of Revenue Earning Vehicles and Lease Charges (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation of revenue earning vehicles | $ 432 | $ 167 | $ 754 | $ 432 |
(Gain) loss on disposal of revenue earning vehicles | (331) | (60) | (718) | (93) |
Rents paid for vehicles leased | 5 | 9 | 11 | 20 |
Depreciation of revenue earning vehicles and lease charges, net | $ 106 | $ 116 | $ 47 | $ 359 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Total Non-Vehicle Debt | $ 13,392 | $ 10,907 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Total Non-Vehicle Debt | Total Non-Vehicle Debt |
Non-vehicle | ||
Debt Instrument [Line Items] | ||
Unamortized Debt Issuance Costs and Net (Discount) Premium | $ (64) | $ (69) |
Total Non-Vehicle Debt | 2,981 | 2,986 |
Vehicles | ||
Debt Instrument [Line Items] | ||
Total Non-Vehicle Debt | $ 10,411 | 7,921 |
Term B Loan | Non-vehicle | ||
Debt Instrument [Line Items] | ||
Average interest rate (as a percent) | 4.33% | |
Outstanding principal | $ 1,287 | 1,294 |
Term C Loan | Non-vehicle | ||
Debt Instrument [Line Items] | ||
Average interest rate (as a percent) | 4.33% | |
Outstanding principal | $ 245 | 245 |
Senior Notes Due 2026 | Non-vehicle | ||
Debt Instrument [Line Items] | ||
Average interest rate (as a percent) | 4.63% | |
Outstanding principal | $ 500 | 500 |
Senior Notes Due 2029 | Non-vehicle | ||
Debt Instrument [Line Items] | ||
Average interest rate (as a percent) | 5% | |
Outstanding principal | $ 1,000 | 1,000 |
First Lien RCF | Non-vehicle | ||
Debt Instrument [Line Items] | ||
Outstanding principal | $ 0 | 0 |
Other Non-Vehicle Debt | Non-vehicle | ||
Debt Instrument [Line Items] | ||
Average interest rate (as a percent) | 7.98% | |
Outstanding principal | $ 13 | 16 |
Finance lease liability | 9 | 12 |
Vehicle Debt | ||
Debt Instrument [Line Items] | ||
Unamortized Debt Issuance Costs and Net (Discount) Premium | (51) | (33) |
Total Non-Vehicle Debt | 7,921 | |
Vehicle Debt | Vehicles | ||
Debt Instrument [Line Items] | ||
Total Non-Vehicle Debt | 10,411 | |
HVF III U.S. Vehicle Variable Funding Notes | Vehicles | ||
Debt Instrument [Line Items] | ||
Outstanding principal | $ 2,461 | 3,001 |
HVF III Series 2021-A Class A | Vehicles | ||
Debt Instrument [Line Items] | ||
Average interest rate (as a percent) | 2.88% | |
Outstanding principal | $ 2,273 | 2,813 |
HVF III Series 2021-A Class B | Vehicles | ||
Debt Instrument [Line Items] | ||
Average interest rate (as a percent) | 3.65% | |
Outstanding principal | $ 188 | 188 |
HVF III U.S. Vehicle Medium Term Notes | Vehicles | ||
Debt Instrument [Line Items] | ||
Outstanding principal | $ 6,536 | 4,000 |
HVF III Series 2021-1 | Vehicles | ||
Debt Instrument [Line Items] | ||
Average interest rate (as a percent) | 1.66% | |
Outstanding principal | $ 2,000 | 2,000 |
HVF III Series 2021-2 | Vehicles | ||
Debt Instrument [Line Items] | ||
Average interest rate (as a percent) | 2.12% | |
Outstanding principal | $ 2,000 | 2,000 |
HVF III Series 2022-1 Class D Notes | Vehicles | ||
Debt Instrument [Line Items] | ||
Average interest rate (as a percent) | 2.07% | |
Outstanding principal | $ 653 | 0 |
HVF III Series 2022-2 Class D Notes | Vehicles | ||
Debt Instrument [Line Items] | ||
Average interest rate (as a percent) | 2.42% | |
Outstanding principal | $ 653 | 0 |
HVF III Series 2022-3 Class D Notes | Vehicles | ||
Debt Instrument [Line Items] | ||
Average interest rate (as a percent) | 3.53% | |
Outstanding principal | $ 333 | 0 |
HVF III Series 2022-4 Class D Notes | Vehicles | ||
Debt Instrument [Line Items] | ||
Average interest rate (as a percent) | 3.87% | |
Outstanding principal | $ 580 | 0 |
HVF III Series 2022-5 Class D Notes | Vehicles | ||
Debt Instrument [Line Items] | ||
Average interest rate (as a percent) | 4.03% | |
Outstanding principal | $ 317 | 0 |
Other Fleet Debt | Vehicles | ||
Debt Instrument [Line Items] | ||
Outstanding principal | $ 1,465 | 953 |
Repurchase Facility | Vehicles | ||
Debt Instrument [Line Items] | ||
Average interest rate (as a percent) | 3.03% | |
Outstanding principal | $ 236 | 0 |
European ABS | Vehicles | ||
Debt Instrument [Line Items] | ||
Average interest rate (as a percent) | 1.80% | |
Outstanding principal | $ 510 | 395 |
Hertz Canadian Securitization | Vehicles | ||
Debt Instrument [Line Items] | ||
Average interest rate (as a percent) | 3.77% | |
Outstanding principal | $ 326 | 191 |
Australian Securitization | Vehicles | ||
Debt Instrument [Line Items] | ||
Average interest rate (as a percent) | 2.74% | |
Outstanding principal | $ 140 | 128 |
New Zealand RCF | Vehicles | ||
Debt Instrument [Line Items] | ||
Average interest rate (as a percent) | 5.12% | |
Outstanding principal | $ 37 | 39 |
U.K. Financing Facility | Vehicles | ||
Debt Instrument [Line Items] | ||
Average interest rate (as a percent) | 4.75% | |
Outstanding principal | $ 107 | 98 |
U.K. Toyota Financing Facility | Vehicles | ||
Debt Instrument [Line Items] | ||
Average interest rate (as a percent) | 2.20% | |
Outstanding principal | $ 27 | 9 |
Other Vehicle Debt | Vehicles | ||
Debt Instrument [Line Items] | ||
Average interest rate (as a percent) | 2.93% | |
Outstanding principal | $ 82 | $ 93 |
Debt - Narrative (Details)
Debt - Narrative (Details) £ in Millions, $ in Millions, $ in Millions | 1 Months Ended | 6 Months Ended | ||||||||||||||
Jun. 30, 2022 USD ($) employee | Jul. 28, 2022 USD ($) | Jun. 30, 2022 USD ($) | Dec. 31, 2022 | Dec. 01, 2022 CAD ($) | Nov. 01, 2022 GBP (£) | Sep. 30, 2022 | Jun. 30, 2022 CAD ($) | May 31, 2022 USD ($) | Apr. 30, 2022 GBP (£) | Mar. 31, 2022 USD ($) | Feb. 28, 2022 USD ($) | Jan. 31, 2022 USD ($) | Jan. 31, 2022 AUD ($) | Dec. 31, 2021 USD ($) | ||
Debt Instrument [Line Items] | ||||||||||||||||
Total assets | [1] | $ 22,066 | $ 22,066 | $ 19,783 | ||||||||||||
Liabilities | [1] | 19,337 | $ 19,337 | 16,806 | ||||||||||||
International Fleet Financing No. 2 B.V. | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Ownership percentage | 25% | |||||||||||||||
Total assets | 838 | $ 838 | 734 | |||||||||||||
Liabilities | $ 837 | $ 837 | 733 | |||||||||||||
First Lien RCF | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Maximum consolidated leverage ratio | 3.50 | 3.50 | 3.50 | 3 | ||||||||||||
First Lien RCF | Forecast | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Maximum consolidated leverage ratio | 3 | 3.50 | ||||||||||||||
HVF III Series 2021-A | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Aggregate principal amount | $ 3,800 | $ 3,800 | $ 3,600 | $ 3,200 | $ 3,000 | |||||||||||
HVF III Series 2021-A | Subsequent Event | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Aggregate principal amount | $ 3,900 | |||||||||||||||
HVF III Series 2022-1 Class D Notes | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Aggregate principal amount | $ 750 | |||||||||||||||
HVF III Series 2022-1 Class D Notes | Vehicles | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Outstanding principal | 653 | 653 | 0 | |||||||||||||
HVF III Series 2022-2 Class D Notes | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Aggregate principal amount | $ 750 | |||||||||||||||
HVF III Series 2022-2 Class D Notes | Vehicles | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Outstanding principal | 653 | 653 | 0 | |||||||||||||
HVF III Series 2022-3 Class D Notes | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Aggregate principal amount | 383 | |||||||||||||||
HVF III Series 2022-3 Class D Notes | Vehicles | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Outstanding principal | 333 | 333 | 0 | |||||||||||||
HVF III Series 2022-4 Class D Notes | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Aggregate principal amount | 667 | |||||||||||||||
HVF III Series 2022-4 Class D Notes | Vehicles | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Outstanding principal | 580 | 580 | 0 | |||||||||||||
HVF III Series 2022-5 Class D Notes | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Aggregate principal amount | 364 | |||||||||||||||
HVF III Series 2022-5 Class D Notes | Vehicles | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Outstanding principal | 317 | 317 | 0 | |||||||||||||
Repurchase Facility | Vehicles | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Outstanding principal | $ 236 | 236 | 0 | |||||||||||||
Tenor, number of days | employee | 30 | |||||||||||||||
Repurchase Facility | Vehicles | Secured Overnight Financing Rate (SOFR) | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Basis spread on variable rate (percent) | 1.50% | |||||||||||||||
Australian Securitization | Vehicles | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Outstanding principal | $ 140 | 140 | 128 | |||||||||||||
U.K. Toyota Financing Facility | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Aggregate principal amount | 25 | 10 | ||||||||||||||
U.K. Toyota Financing Facility | Vehicles | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Outstanding principal | 27 | 27 | $ 9 | |||||||||||||
Revolving Credit Facility | First Lien RCF | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Maximum borrowing capacity | 1,900 | 1,900 | 1,700 | 1,500 | 1,300 | |||||||||||
Revolving Credit Facility | First Lien RCF | Subsequent Event | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Maximum borrowing capacity | 1,900 | |||||||||||||||
Line of credit facility, increase (decrease), net | 55 | |||||||||||||||
Revolving Credit Facility | First Lien RCF | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Outstanding standby letters of credit | 441 | 441 | ||||||||||||||
Revolving Credit Facility | Australian Securitization | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Maximum borrowing capacity | $ 250,000,000 | |||||||||||||||
Revolving Credit Facility | U.K. Financing Facility | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Maximum borrowing capacity | £ | £ 120 | |||||||||||||||
Revolving Credit Facility | U.K. Financing Facility | Subsequent Event | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Maximum borrowing capacity | £ | £ 100 | |||||||||||||||
Revolving Credit Facility | Hertz Canadian Securitization | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Maximum borrowing capacity | $ 450 | |||||||||||||||
Revolving Credit Facility | Hertz Canadian Securitization | Subsequent Event | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Maximum borrowing capacity | $ 350 | |||||||||||||||
Letter of Credit | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Outstanding standby letters of credit | 701 | 701 | ||||||||||||||
Letter of Credit | First Lien RCF | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Maximum borrowing capacity | 1,800 | 1,800 | $ 1,600 | $ 1,400 | $ 1,100 | |||||||||||
Letter of Credit | First Lien RCF | Subsequent Event | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Maximum borrowing capacity | 1,800 | |||||||||||||||
Line of credit facility, increase (decrease), net | $ 55 | |||||||||||||||
Letter of Credit | Term C Loan | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Outstanding standby letters of credit | $ 245 | $ 245 | ||||||||||||||
[1]Hertz Global Holdings, Inc.'s consolidated total assets as of June 30, 2022 and December 31, 2021 include total assets of variable interest entities (“VIEs”) of $838 million and $734 million, respectively, which can only be used to settle obligations of the VIEs. Hertz Global Holdings, Inc.'s consolidated total liabilities as of June 30, 2022 and December 31, 2021 include total liabilities of VIEs of $837 million and $733 million, respectively, for which the creditors of the VIEs have no recourse to Hertz Global Holdings, Inc. See "Pledges Related to Vehicle Financing" in Note 5, "Debt," for further information. |
Debt - Eliminated in Consolidat
Debt - Eliminated in Consolidation (Details) - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended |
Jul. 28, 2022 | Jun. 30, 2022 | |
Debt Instrument [Line Items] | ||
Elimination of debt | $ 380 | |
HVF III Series 2022-1 Class D Notes | ||
Debt Instrument [Line Items] | ||
Elimination of debt | 98 | |
HVF III Series 2022-1 Class D Notes | Subsequent Event | ||
Debt Instrument [Line Items] | ||
Elimination of debt | $ 81 | |
HVF III Series 2022-2 Class D Notes | ||
Debt Instrument [Line Items] | ||
Elimination of debt | 98 | |
HVF III Series 2022-3 Class D Notes | ||
Debt Instrument [Line Items] | ||
Elimination of debt | 50 | |
HVF III Series 2022-4 Class D Notes | ||
Debt Instrument [Line Items] | ||
Elimination of debt | 87 | |
HVF III Series 2022-5 Class D Notes | ||
Debt Instrument [Line Items] | ||
Elimination of debt | $ 47 |
Debt - Borrowing Capacity (Deta
Debt - Borrowing Capacity (Details) $ in Millions | Jun. 30, 2022 USD ($) |
Debt Instrument [Line Items] | |
Remaining capacity | $ 3,184 |
Availability under borrowing base limitation | 1,449 |
Corporate Debt Securities | |
Debt Instrument [Line Items] | |
Remaining capacity | 1,449 |
Availability under borrowing base limitation | 1,449 |
First Lien RCF | |
Debt Instrument [Line Items] | |
Remaining capacity | 1,449 |
Availability under borrowing base limitation | 1,449 |
Vehicle Debt | |
Debt Instrument [Line Items] | |
Remaining capacity | 1,735 |
Availability under borrowing base limitation | 0 |
HVF III Series 2021-A | |
Debt Instrument [Line Items] | |
Remaining capacity | 1,383 |
Availability under borrowing base limitation | 0 |
European ABS | |
Debt Instrument [Line Items] | |
Remaining capacity | 279 |
Availability under borrowing base limitation | 0 |
Hertz Canadian Securitization | |
Debt Instrument [Line Items] | |
Remaining capacity | 23 |
Availability under borrowing base limitation | 0 |
Australian Securitization | |
Debt Instrument [Line Items] | |
Remaining capacity | 33 |
Availability under borrowing base limitation | 0 |
U.K. Financing Facility | |
Debt Instrument [Line Items] | |
Remaining capacity | 14 |
Availability under borrowing base limitation | 0 |
U.K. Toyota Financing Facility | |
Debt Instrument [Line Items] | |
Remaining capacity | 3 |
Availability under borrowing base limitation | $ 0 |
Leases - Leases Income (Details
Leases - Leases Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Lessor, Lease, Description [Line Items] | ||||
Revenue accounted for under Topic 842 | $ 2,283 | $ 1,837 | $ 4,048 | $ 3,085 |
Revenue accounted for under Topic 606 | 61 | 36 | 106 | 76 |
Revenues | 2,344 | 1,873 | 4,154 | 3,161 |
Vehicle Rentals, Operating Lease | ||||
Lessor, Lease, Description [Line Items] | ||||
Revenue accounted for under Topic 842 | 2,226 | 1,798 | 3,947 | 2,896 |
Fleet Leasing, Operating Lease | ||||
Lessor, Lease, Description [Line Items] | ||||
Revenue accounted for under Topic 842 | 0 | 0 | 0 | 149 |
Variable, Operating Lease | ||||
Lessor, Lease, Description [Line Items] | ||||
Revenue accounted for under Topic 842 | $ 57 | $ 39 | $ 101 | $ 40 |
Income Tax (Provision) Benefit
Income Tax (Provision) Benefit (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Tax Contingency [Line Items] | ||||
Income tax (provision) benefit | $ (179) | $ 46 | $ (309) | $ (33) |
Effective tax rate (as percent) | 16% | 22% | 18% | 63% |
The Hertz Corporation | ||||
Income Tax Contingency [Line Items] | ||||
Income tax (provision) benefit | $ (178) | $ 46 | $ (308) | $ (33) |
Effective tax rate (as percent) | 27% | 90% | (26.00%) | (15.00%) |
Capital Loss Carryforward | ||||
Income Tax Contingency [Line Items] | ||||
Capital loss carryforwards | $ 670 | $ 670 | ||
Capital Loss Carryforward | The Hertz Corporation | ||||
Income Tax Contingency [Line Items] | ||||
Capital loss carryforwards | 670 | 670 | ||
Capital Loss Carryforward | Domestic Tax Authority | ||||
Income Tax Contingency [Line Items] | ||||
Capital loss carryforwards | 141 | 141 | ||
Capital Loss Carryforward | Domestic Tax Authority | The Hertz Corporation | ||||
Income Tax Contingency [Line Items] | ||||
Capital loss carryforwards | $ 141 | $ 141 |
Public Warrants, Equity and E_3
Public Warrants, Equity and Earnings (Loss) Per Common Share – Hertz Global - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | 6 Months Ended | 7 Months Ended | 13 Months Ended | |||
Jul. 21, 2022 | Jun. 30, 2022 | Jul. 21, 2022 | Jun. 30, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2022 | Nov. 30, 2021 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||||
Warrants exercised (in shares) | 44,700 | 189,890 | 6,230,170 | ||||||
Warrants exercised, cashless (in shares) | 13,223 | 46,650 | |||||||
Warrants exercised, cash (in shares) | 31,477 | 143,240 | |||||||
Exercise price of warrants (in usd per share) | $ 13.80 | $ 13.80 | $ 13.80 | $ 13.80 | $ 13.80 | ||||
Share repurchases | $ 1,647 | $ 0 | |||||||
2021 Share Repurchase Program | |||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||||
Stock repurchase program, authorized amount | $ 2,000 | ||||||||
Shares repurchased (in shares) | 80,677,021 | 97,783,047 | |||||||
Average share repurchase price (in dollars per share) | $ 19.74 | ||||||||
Share repurchases | $ 1,600 | ||||||||
2022 Share Repurchase Program | |||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||||
Stock repurchase program, authorized amount | $ 2,000 | $ 2,000 | $ 2,000 | $ 2,000 | $ 2,000 | ||||
Shares repurchased (in shares) | 1,207,930 | ||||||||
Average share repurchase price (in dollars per share) | $ 16.56 | ||||||||
Share repurchases | $ 20 | ||||||||
Subsequent Event | 2022 Share Repurchase Program | |||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||||
Shares repurchased (in shares) | 8,092,200 | 9,300,130 | |||||||
Average share repurchase price (in dollars per share) | $ 17.09 | ||||||||
Share repurchases | $ 138 | $ 158 |
Public Warrants, Equity and E_4
Public Warrants, Equity and Earnings (Loss) Per Common Share – Hertz Global (Basic and Diluted Earnings (Loss) Per Share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Numerator: | ||||
Net income (loss) attributable and available to Hertz Global common stockholders, basic | $ (168) | $ 1,366 | $ 21 | |
Change in fair value of Public Warrants | $ (461) | 0 | (511) | 0 |
Net income (loss) available to Hertz Global common stockholders, diluted | $ 479 | $ (168) | $ 856 | $ 21 |
Denominator: | ||||
Basic weighted-average shares outstanding (in shares) | 398 | 160 | 415 | 158 |
Dilutive effect of stock options, RSUs and PSUs (in shares) | 1 | 0 | 1 | 0 |
Dilutive effect of Public Warrants (in shares) | 25 | 0 | 27 | 0 |
Diluted weighted-average shares outstanding (in shares) | 424 | 160 | 443 | 158 |
Antidilutive stock options, RSUs, and PSUs (in shares) | 7 | 1 | 6 | 1 |
Earnings (loss) per common share: | ||||
Basic (in dollars per share) | $ 2.36 | $ (1.05) | $ 3.29 | $ 0.13 |
Diluted (in dollars per share) | $ 1.13 | $ (1.05) | $ 1.93 | $ 0.13 |
Antidilutive stock options, RSUs and PSUs | ||||
Denominator: | ||||
Antidilutive stock options, RSUs, and PSUs (in shares) | 7 | 1 | 6 | 1 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | $ 64 | $ 2 | ||
Performance Stock Units | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award requisite service period | 1 year | |||
Performance Stock Units | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award requisite service period | 5 years | |||
Omnibus Incentive Plan 2021 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares available for grant (in shares) | 42,470,050 | 42,470,050 | ||
Compensation expense | $ 36 | $ 63 | ||
Tax benefit | 3 | 4 | ||
Unrecognized compensation cost | $ 287 | $ 287 | ||
Period for recognition of total unrecognized compensation cost | 2 years 2 months 12 days | |||
Omnibus Incentive Plan 2021 | Performance Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares outstanding (in shares) | 9,909,888 | 9,909,888 | 0 | |
Omnibus Incentive Plan 2021 | Restricted Stock and Restricted Stock Units issued in 2022 | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 2 years | |||
Omnibus Incentive Plan 2021 | Restricted Stock and Restricted Stock Units issued in 2022 | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 4 years | |||
Omnibus Incentive Plan 2021 | Restricted Stock and Restricted Stock Units issued in 2021 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 3 years | |||
Omnibus Incentive Plan 2021 | Deferred Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares outstanding (in shares) | 48,000 | 48,000 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Option Activity (Details) - Omnibus Incentive Plan 2021 - USD ($) $ / shares in Units, $ in Millions | 6 Months Ended | |
Dec. 31, 2021 | Jun. 30, 2022 | |
Shares | ||
Outstanding beginning balance (in shares) | 3,678,855 | |
Granted (in shares) | 0 | |
Exercised (in shares) | 0 | |
Forfeited or Expired (in shares) | (244,640) | |
Outstanding ending balance (in shares) | 3,678,855 | 3,434,215 |
Exercisable (in shares) | (206,440) | |
Non-vested (in shares) | 3,227,775 | |
Weighted- Average Exercise Price | ||
Outstanding beginning balance (in dollars per share) | $ 26.17 | |
Granted (in dollars per share) | 0 | |
Exercised (in dollars per share) | 0 | |
Forfeited or Expired (in dollars per share) | 26.17 | |
Outstanding ending balance (in dollars per share) | $ 26.17 | 0 |
Exercisable (in dollars per share) | $ 26.17 | |
Weighted-Average Remaining Contractual Term (years)/Aggregate intrinsic Value | ||
Weighted average remaining contractual term | 9 years 10 months 24 days | 9 years 4 months 24 days |
Weighted average remaining contractual term, Exercisable | 9 years 4 months 24 days | |
Aggregate intrinsic value | $ 0 | $ 0 |
Aggregate intrinsic value, Exercisable | $ 0 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of PSU Activity (Details) - Omnibus Incentive Plan 2021 - Performance Stock Units - USD ($) $ / shares in Units, $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Shares | ||
Outstanding beginning balance (in shares) | 0 | |
Granted (in shares) | 9,928,917 | |
Vested (in shares) | 0 | |
Forfeited or Expired (in shares) | (19,029) | |
Outstanding ending balance (in shares) | 9,909,888 | |
Weighted- Average Fair Value | ||
Outstanding beginning balance (in dollars per share) | $ 0 | |
Granted (in dollars per share) | 17.73 | |
Vested (in dollars per share) | 0 | |
Forfeited or Expired (In dollars per share) | 22.02 | |
Outstanding ending balance (in dollars per share) | $ 17.72 | |
Aggregate intrinsic value, Outstanding | $ 157 | $ 0 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Valuation Assumptions (Details) - Performance Stock Units - Omnibus Incentive Plan 2021 | 6 Months Ended |
Jun. 30, 2022 $ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected volatility | 68% |
Expected dividend yield | 0% |
Expected term (years) | 5 years |
Risk-free interest rate | 1.71% |
Weighted-average grant date fair value (in dollars per share) | $ 17.61 |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summary of RSU Activity (Details) - Omnibus Incentive Plan 2021 - Restricted Stock Units - USD ($) $ / shares in Units, $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Shares | ||
Outstanding beginning balance (in shares) | 1,726,286 | |
Granted (in shares) | 3,353,698 | |
Vested (in shares) | (568,812) | |
Forfeited or Expired (in shares) | (119,604) | |
Outstanding ending balance (in shares) | 4,391,568 | |
Weighted- Average Fair Value | ||
Outstanding beginning balance (in dollars per share) | $ 26.17 | |
Granted (in dollars per share) | 20.60 | |
Vested (in dollars per share) | 26.17 | |
Forfeited or Expired (In dollars per share) | 24.85 | |
Outstanding ending balance (in dollars per share) | $ 21.95 | |
Aggregate intrinsic value, Outstanding | $ 70 | $ 43 |
Stock-Based Compensation - Sc_2
Stock-Based Compensation - Schedule of Additional RSU Activity (Details) - Restricted Stock Units - Omnibus Incentive Plan 2021 $ / shares in Units, $ in Millions | 6 Months Ended |
Jun. 30, 2022 USD ($) $ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total fair value of awards that vested | $ | $ 15 |
Weighted-average grant-date fair value of awards (in dollars per share) | $ / shares | $ 20.60 |
Financial Instruments - Schedul
Financial Instruments - Schedule of Fair Value of Financial Instruments (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Asset Derivatives | $ 101 | $ 13 |
Liability Derivatives | 6 | 2 |
Interest rate instruments | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Asset Derivatives | 99 | 12 |
Liability Derivatives | 0 | 0 |
Foreign currency forward contracts | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Asset Derivatives | 2 | 1 |
Liability Derivatives | $ 6 | $ 2 |
Financial Instruments (Details)
Financial Instruments (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain on interest rate instruments | $ 65,000,000 | $ (2,000,000) | ||
Interest rate instruments | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain on interest rate instruments | $ 21,000,000 | $ 0 | $ 65,000,000 | $ 0 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Instruments (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Nominal Unpaid Principal Balance | $ 13,507 | $ 11,009 |
Aggregate Fair Value | 12,581 | 10,973 |
Non-vehicle | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Nominal Unpaid Principal Balance | 3,045 | 3,055 |
Aggregate Fair Value | 2,642 | 3,065 |
Vehicles | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Nominal Unpaid Principal Balance | 10,462 | 7,954 |
Aggregate Fair Value | $ 9,939 | $ 7,908 |
Fair Value Measurements - Cash
Fair Value Measurements - Cash and Cash Equivalents and Investments (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Money Market Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $ 794 | $ 1,678 |
Money Market Funds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 794 | 1,678 |
Money Market Funds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Money Market Funds | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Warrants | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 811 | 1,324 |
Warrants | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 811 | 1,324 |
Warrants | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Warrants | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $ 0 | $ 0 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | ||||
Change in fair value of Public Warrants | $ (461) | $ 0 | $ (511) | $ 0 |
Contingencies and Off-Balance_2
Contingencies and Off-Balance Sheet Commitments (Details) - USD ($) | 6 Months Ended | ||
Jul. 01, 2021 | Jun. 30, 2022 | Dec. 31, 2021 | |
Loss Contingencies [Line Items] | |||
Self-insured liabilities | $ 470,000,000 | $ 463,000,000 | |
Damages sought, value | $ 271,684,720 | ||
Net proceeds from repayment or recovery, percent | 15% | ||
New York | |||
Loss Contingencies [Line Items] | |||
Damages sought, value | $ 124,512,653 | ||
Senior Notes 6.250 Percent Due 2022 | |||
Loss Contingencies [Line Items] | |||
Interest rate percentage | 6.25% | ||
Senior Notes 5.500 Percent Due 2024 | |||
Loss Contingencies [Line Items] | |||
Interest rate percentage | 5.50% | ||
Senior Notes, 7.125 Percent, Due 2026 | |||
Loss Contingencies [Line Items] | |||
Interest rate percentage | 7.125% | ||
Senior Notes, 6.000 Percent, Due January 2028 | |||
Loss Contingencies [Line Items] | |||
Interest rate percentage | 6% |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2021 | May 31, 2021 | |
767 Auto Leasing, LLC | Master Motor Vehicle Lease and Management Agreement | |||
Related Party Transaction [Line Items] | |||
Operating income or loss, percent | 25% | ||
The Hertz Corporation | 767 Auto Leasing, LLC | |||
Related Party Transaction [Line Items] | |||
Payments of distributions to affiliates | $ 5 | $ 15 | |
The Hertz Corporation | Hertz Global Holdings | Master Loan Agreement, Due May 2022 | |||
Related Party Transaction [Line Items] | |||
Due from related parties | $ 25 |
Segment Information - Narrative
Segment Information - Narrative (Details) | 6 Months Ended |
Jun. 30, 2022 segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Segment Information - Reportabl
Segment Information - Reportable Segments to Consolidated (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | ||||
Revenues | $ 2,344 | $ 1,873 | $ 4,154 | $ 3,161 |
Depreciation of revenue earning vehicles and lease charges, net | 106 | 116 | 47 | 359 |
Adjusted EBITDA | 764 | 639 | 1,378 | 642 |
Operating Segments | ||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | ||||
Revenues | 2,344 | 1,873 | 4,154 | 3,025 |
Adjusted EBITDA | 862 | 663 | 1,530 | 681 |
Operating Segments | Americas RAC | ||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | ||||
Revenues | 1,973 | 1,643 | 3,531 | 2,610 |
Depreciation of revenue earning vehicles and lease charges, net | 61 | 80 | (32) | 290 |
Adjusted EBITDA | 770 | 664 | 1,411 | 690 |
Operating Segments | International RAC | ||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | ||||
Revenues | 371 | 230 | 623 | 415 |
Depreciation of revenue earning vehicles and lease charges, net | 45 | 36 | 79 | 69 |
Adjusted EBITDA | 92 | (1) | 119 | (9) |
All Other Operations | ||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | ||||
Revenues | 0 | 0 | 0 | 136 |
Adjusted EBITDA | 0 | 0 | 0 | 13 |
Corporate, Non-Segment | ||||
Reconciliation of adjusted pre-tax income to income (loss) before income taxes | ||||
Adjusted EBITDA | $ (98) | $ (24) | $ (152) | $ (52) |
Segment Information - Total Ass
Segment Information - Total Assets (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 | |
Revenue earning equipment | |||
Total revenue earning vehicles, net | $ 12,330 | $ 9,226 | |
Total assets | [1] | 22,066 | 19,783 |
The Hertz Corporation | |||
Revenue earning equipment | |||
Total revenue earning vehicles, net | 12,330 | 9,226 | |
Total assets | [2] | 22,065 | 19,780 |
The Hertz Corporation | Variable Interest Entity, Primary Beneficiary | |||
Revenue earning equipment | |||
Total assets | 838 | 734 | |
Operating Segments | |||
Revenue earning equipment | |||
Total assets | 20,442 | 17,330 | |
Operating Segments | Americas RAC | |||
Revenue earning equipment | |||
Total revenue earning vehicles, net | 10,728 | 7,897 | |
Total assets | 17,197 | 14,352 | |
Operating Segments | International RAC | |||
Revenue earning equipment | |||
Total revenue earning vehicles, net | 1,602 | 1,329 | |
Total assets | 3,245 | 2,978 | |
Corporate, Non-Segment | |||
Revenue earning equipment | |||
Total assets | 1,624 | 2,453 | |
Corporate, Non-Segment | The Hertz Corporation | |||
Revenue earning equipment | |||
Total assets | $ (1) | $ (3) | |
[1]Hertz Global Holdings, Inc.'s consolidated total assets as of June 30, 2022 and December 31, 2021 include total assets of variable interest entities (“VIEs”) of $838 million and $734 million, respectively, which can only be used to settle obligations of the VIEs. Hertz Global Holdings, Inc.'s consolidated total liabilities as of June 30, 2022 and December 31, 2021 include total liabilities of VIEs of $837 million and $733 million, respectively, for which the creditors of the VIEs have no recourse to Hertz Global Holdings, Inc. See "Pledges Related to Vehicle Financing" in Note 5, "Debt," for further information.[2]The Hertz Corporation's consolidated total assets as of June 30, 2022 and December 31, 2021 include total assets of VIEs of $838 million and $734 million, respectively, which can only be used to settle obligations of the VIEs. The Hertz Corporation's consolidated total liabilities as of June 30, 2022 and December 31, 2021 include total liabilities of VIEs of $837 million and $733 million, respectively, for which the creditors of the VIEs have no recourse to The Hertz Corporation. See "Pledges Related to Vehicle Financing" in Note 5, "Debt," for further information. |
Segment Information - Pre-tax I
Segment Information - Pre-tax Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Revenue earning equipment | ||||
Adjusted EBITDA | $ 764 | $ 639 | $ 1,378 | $ 642 |
Income (loss) before income taxes | 1,119 | (215) | 1,675 | 52 |
Loss on extinguishment of debt | 0 | 8 | ||
HIL Credit Agreement | ||||
Revenue earning equipment | ||||
Loss on extinguishment of debt | 8 | |||
Restructuring and restructuring related charges | ||||
Revenue earning equipment | ||||
Income (loss) before income taxes | (15) | (37) | (21) | (50) |
Reorganization items, net | ||||
Revenue earning equipment | ||||
Income (loss) before income taxes | 0 | (633) | 0 | (677) |
Pre-reorganization charges and non-debtor financing charges | ||||
Revenue earning equipment | ||||
Income (loss) before income taxes | 0 | (17) | 0 | (40) |
Gain from the Donlen Sale | ||||
Revenue earning equipment | ||||
Income (loss) before income taxes | 0 | 8 | 0 | 400 |
Change in fair value of Public Warrants | ||||
Revenue earning equipment | ||||
Income (loss) before income taxes | 461 | 0 | 511 | 0 |
Unrealized gains (losses) on financial instruments | ||||
Revenue earning equipment | ||||
Income (loss) before income taxes | 21 | 0 | 65 | |
Other items | ||||
Revenue earning equipment | ||||
Income (loss) before income taxes | (26) | (8) | (93) | 70 |
Operating Segments | ||||
Revenue earning equipment | ||||
Adjusted EBITDA | 862 | 663 | 1,530 | 681 |
Operating Segments | Americas RAC | ||||
Revenue earning equipment | ||||
Adjusted EBITDA | 770 | 664 | 1,411 | 690 |
Operating Segments | International RAC | ||||
Revenue earning equipment | ||||
Adjusted EBITDA | 92 | (1) | 119 | (9) |
All Other Operations | ||||
Revenue earning equipment | ||||
Adjusted EBITDA | 0 | 0 | 0 | 13 |
Corporate, Non-Segment | ||||
Revenue earning equipment | ||||
Adjusted EBITDA | (98) | (24) | (152) | (52) |
The Hertz Corporation | ||||
Revenue earning equipment | ||||
Adjusted EBITDA | 764 | 639 | 1,378 | 642 |
Income (loss) before income taxes | 658 | (51) | 1,164 | 216 |
Loss on extinguishment of debt | 0 | 8 | ||
The Hertz Corporation | Restructuring and restructuring related charges | ||||
Revenue earning equipment | ||||
Income (loss) before income taxes | (15) | (37) | (21) | (50) |
The Hertz Corporation | Reorganization items, net | ||||
Revenue earning equipment | ||||
Income (loss) before income taxes | 0 | (469) | 0 | (513) |
The Hertz Corporation | Pre-reorganization charges and non-debtor financing charges | ||||
Revenue earning equipment | ||||
Income (loss) before income taxes | 0 | (17) | 0 | (40) |
The Hertz Corporation | Gain from the Donlen Sale | ||||
Revenue earning equipment | ||||
Income (loss) before income taxes | 0 | 8 | 0 | 400 |
The Hertz Corporation | Unrealized gains (losses) on financial instruments | ||||
Revenue earning equipment | ||||
Income (loss) before income taxes | 21 | 0 | 65 | 0 |
The Hertz Corporation | Other items | ||||
Revenue earning equipment | ||||
Income (loss) before income taxes | (26) | (8) | (93) | 70 |
The Hertz Corporation | Other items | Donlen Corporation | ||||
Revenue earning equipment | ||||
Income (loss) before income taxes | 100 | 100 | ||
The Hertz Corporation | Operating Segments | ||||
Revenue earning equipment | ||||
Adjusted EBITDA | 862 | 663 | 1,530 | 681 |
The Hertz Corporation | Operating Segments | Americas RAC | ||||
Revenue earning equipment | ||||
Adjusted EBITDA | 770 | 664 | 1,411 | 690 |
The Hertz Corporation | Operating Segments | International RAC | ||||
Revenue earning equipment | ||||
Adjusted EBITDA | 92 | (1) | 119 | (9) |
The Hertz Corporation | All Other Operations | ||||
Revenue earning equipment | ||||
Adjusted EBITDA | 0 | 0 | 0 | 13 |
The Hertz Corporation | Corporate, Non-Segment | ||||
Revenue earning equipment | ||||
Adjusted EBITDA | (98) | (24) | (152) | (52) |
Non-vehicle | Non-vehicle deprecation and amortization | ||||
Revenue earning equipment | ||||
Income (loss) before income taxes | (36) | (50) | (69) | (104) |
Non-vehicle | Debt-related charges | ||||
Revenue earning equipment | ||||
Income (loss) before income taxes | (41) | (91) | (80) | (135) |
Non-vehicle | The Hertz Corporation | Non-vehicle deprecation and amortization | ||||
Revenue earning equipment | ||||
Income (loss) before income taxes | (36) | (50) | (69) | (104) |
Non-vehicle | The Hertz Corporation | Debt-related charges | ||||
Revenue earning equipment | ||||
Income (loss) before income taxes | (41) | (91) | (80) | (135) |
Vehicles | Debt-related charges | ||||
Revenue earning equipment | ||||
Income (loss) before income taxes | (9) | (26) | (16) | (54) |
Vehicles | The Hertz Corporation | Debt-related charges | ||||
Revenue earning equipment | ||||
Income (loss) before income taxes | $ (9) | $ (26) | $ (16) | $ (54) |
Reorganization Items, Net - Sch
Reorganization Items, Net - Schedule of Reorganization Items, Net (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Reorganization, Chapter 11 [Line Items] | ||||
Professional fees and other bankruptcy related costs | $ 199 | $ 257 | ||
Loss on extinguishment of debt | 191 | 191 | ||
Backstop fee | 164 | 164 | ||
Breakup fee | 77 | 77 | ||
Contract settlements | 25 | 25 | ||
Cancellation of share-based compensation grants | (10) | (10) | ||
Net gain on settlement of liabilities subject to compromise | (11) | (22) | ||
Other, net | (2) | (5) | ||
Reorganization items, net | $ 0 | 633 | $ 0 | 677 |
Cancellation of stock-based awards | (10) | (10) | ||
The Hertz Corporation | ||||
Reorganization, Chapter 11 [Line Items] | ||||
Professional fees and other bankruptcy related costs | 199 | 257 | ||
Loss on extinguishment of debt | 191 | 191 | ||
Breakup fee | 77 | 77 | ||
Contract settlements | 25 | 25 | ||
Cancellation of share-based compensation grants | (10) | (10) | ||
Net gain on settlement of liabilities subject to compromise | (11) | (22) | ||
Other, net | (2) | (5) | ||
Reorganization items, net | $ 0 | 469 | $ 0 | $ 513 |
Cancellation of stock-based awards | $ (10) |
Reorganization Items, Net - Nar
Reorganization Items, Net - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2021 | |
Reorganization, Chapter 11 [Line Items] | ||
Payments for reorganization | $ 480 | |
Accounts Payable | ||
Reorganization, Chapter 11 [Line Items] | ||
Unpaid reorganization charges | $ 25 |