☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||||
For the quarterly period ended | June 30, 2021 | |||||||
OR | ||||||||
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Commission File Number |
Exact Name of Registrant as Specified in its Charter,
Principal Executive Office Address and Telephone Number |
State of Incorporation | I.R.S. Employer Identification No. | |||||||||||||||||||||||||||||
001-37665 | HERTZ GLOBAL HOLDINGS, INC | Delaware | 61-1770902 | |||||||||||||||||||||||||||||
8501 Williams Road, | Estero, | Florida | 33928 | |||||||||||||||||||||||||||||
(239) | 301-7000 | |||||||||||||||||||||||||||||||
001-07541 |
THE HERTZ CORPORATION
|
Delaware | 13-1938568 | |||||||||||||||||||||||||||||
8501 Williams Road, | Estero, | Florida | 33928 | |||||||||||||||||||||||||||||
(239) | 301-7000 |
Securities registered pursuant to Section 12(b) of the Act: | ||||||||||||||||||||||||||
Title of each class | Trading Symbol(s) | Name of each exchange on which Registered | ||||||||||||||||||||||||
Hertz Global Holdings, Inc. | Common Stock | par value $0.01 per share | HTZZ | * | ||||||||||||||||||||||
The Hertz Corporation | None | None | None |
Hertz Global Holdings, Inc. | Large accelerated filer | ☐ | Accelerated filer | ☒ | Non-accelerated filer | ☐ | ||||||||||||||
Smaller reporting company | ☐ | Emerging growth company | ☐ | |||||||||||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | ☐ | |||||||||||||||||||
The Hertz Corporation | Large accelerated filer | ☐ | Accelerated filer | ☐ | Non-accelerated filer | ☒ | ||||||||||||||
Smaller reporting company | ☐ | Emerging growth company | ☐ | |||||||||||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | ☐ |
Class | Shares Outstanding as of | August 2, 2021 | ||||||||||||||||||
Hertz Global Holdings, Inc. | Common Stock, | par value $0.01 per share | 471,432,062 | |||||||||||||||||
The Hertz Corporation(1)
|
Common Stock, | par value $0.01 per share | 100 | |||||||||||||||||
(1)(100% owned by
Rental Car Intermediate Holdings, LLC)
|
||||||||||||||||||||
Page | ||||||||
Page | ||||||||
Hertz Global Holdings, Inc. and Subsidiaries | ||||||||
The Hertz Corporation and Subsidiaries | ||||||||
Notes to the Condensed Consolidated Financial Statements | ||||||||
June 30, 2021 | December 31, 2020 | ||||||||||||||||
ASSETS | |||||||||||||||||
Cash and cash equivalents | $ | 1,820 | $ | 1,096 | |||||||||||||
Restricted cash and cash equivalents: | |||||||||||||||||
Vehicle | 247 | 50 | |||||||||||||||
Non-vehicle | 628 | 361 | |||||||||||||||
Total restricted cash and cash equivalents | 875 | 411 | |||||||||||||||
Total cash, cash equivalents, restricted cash and restricted cash equivalents | 2,695 | 1,507 | |||||||||||||||
Receivables: | |||||||||||||||||
Vehicle | 87 | 164 | |||||||||||||||
Non-vehicle, net of allowance of $58 and $46, respectively
|
937 | 613 | |||||||||||||||
Total receivables, net | 1,024 | 777 | |||||||||||||||
Prepaid expenses and other assets | 1,184 | 373 | |||||||||||||||
Revenue earning vehicles: | |||||||||||||||||
Vehicles | 9,563 | 7,540 | |||||||||||||||
Less: accumulated depreciation | (1,573) | (1,478) | |||||||||||||||
Total revenue earning vehicles, net | 7,990 | 6,062 | |||||||||||||||
Property and equipment, net | 618 | 666 | |||||||||||||||
Operating lease right-of-use assets | 1,504 | 1,675 | |||||||||||||||
Intangible assets, net | 2,947 | 2,992 | |||||||||||||||
Goodwill | 1,045 | 1,045 | |||||||||||||||
Assets held for sale | — | 1,811 | |||||||||||||||
Total assets(a)
|
$ | 19,007 | $ | 16,908 | |||||||||||||
LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS' EQUITY | |||||||||||||||||
Accounts payable: | |||||||||||||||||
Vehicle | $ | 93 | $ | 29 | |||||||||||||
Non-vehicle | 687 | 389 | |||||||||||||||
Total accounts payable | 780 | 418 | |||||||||||||||
Accrued liabilities | 945 | 759 | |||||||||||||||
Accrued taxes, net | 232 | 121 | |||||||||||||||
Debt: | |||||||||||||||||
Vehicle | 7,035 | 6,024 | |||||||||||||||
Non-vehicle | 1,514 | 243 | |||||||||||||||
Total debt | 8,549 | 6,267 | |||||||||||||||
Public Warrants | 800 | — | |||||||||||||||
Operating lease liabilities | 1,459 | 1,636 | |||||||||||||||
Self-insured liabilities | 459 | 488 | |||||||||||||||
Deferred income taxes, net | 711 | 730 | |||||||||||||||
Total liabilities not subject to compromise | 13,935 | 10,419 | |||||||||||||||
Liabilities subject to compromise | — | 4,965 | |||||||||||||||
Liabilities held for sale | — | 1,431 | |||||||||||||||
Total liabilities(a)
|
13,935 | 16,815 | |||||||||||||||
Commitments and contingencies | |||||||||||||||||
Mezzanine Equity: | |||||||||||||||||
Preferred stock, $0.01 par value, 1,500,000 shares issued and outstanding at June 30, 2021
|
1,433 | — | |||||||||||||||
Total mezzanine equity | 1,433 | — | |||||||||||||||
Stockholders' equity: | |||||||||||||||||
Preferred stock, $0.01 par value, no shares issued and outstanding at June 30, 2021 and December 31, 2020
|
— | — | |||||||||||||||
Common stock, $0.01 par value, 471,102,462 shares issued and outstanding at June 30, 2021, and 158,235,410 and 156,206,478 shares issued and outstanding at December 31, 2020
|
5 | 2 | |||||||||||||||
Treasury stock, at cost, 2,028,932 shares at December 31, 2020
|
— | (100) | |||||||||||||||
Additional paid-in capital | 6,476 | 3,047 | |||||||||||||||
Retained earnings (Accumulated deficit) | (2,659) | (2,681) | |||||||||||||||
Accumulated other comprehensive income (loss) | (202) | (212) | |||||||||||||||
Stockholders' equity attributable to Hertz Global | 3,620 | 56 | |||||||||||||||
Noncontrolling interests | 19 | 37 | |||||||||||||||
Total stockholders' equity | 3,639 | 93 | |||||||||||||||
Total liabilities, mezzanine equity and stockholders' equity | $ | 19,007 | $ | 16,908 |
Three Months Ended
June 30, |
Six Months Ended
June 30, |
||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Revenues | $ | 1,873 | $ | 832 | $ | 3,161 | $ | 2,755 | |||||||||||||||
Expenses: | |||||||||||||||||||||||
Direct vehicle and operating | 946 | 652 | 1,724 | 1,845 | |||||||||||||||||||
Depreciation of revenue earning vehicles and lease charges | 116 | 609 | 359 | 1,285 | |||||||||||||||||||
Non-vehicle depreciation and amortization | 50 | 57 | 104 | 110 | |||||||||||||||||||
Selling, general and administrative | 172 | 164 | 321 | 368 | |||||||||||||||||||
Interest expense, net: | |||||||||||||||||||||||
Vehicle | 98 | 132 | 202 | 250 | |||||||||||||||||||
Non-vehicle (excludes contractual interest of $22 million for the three and six months ended June 30, 2020)
|
91 | 44 | 135 | 101 | |||||||||||||||||||
Total interest expense, net | 189 | 176 | 337 | 351 | |||||||||||||||||||
Technology-related intangible and other asset impairments | — | 193 | — | 193 | |||||||||||||||||||
Other (income) expense, net | (10) | 2 | (13) | (15) | |||||||||||||||||||
Reorganization items, net | 633 | 23 | 677 | 23 | |||||||||||||||||||
(Gain) from the sale of a business | (8) | — | (400) | — | |||||||||||||||||||
Total expenses | 2,088 | 1,876 | 3,109 | 4,160 | |||||||||||||||||||
Income (loss) before income taxes
|
(215) | (1,044) | 52 | (1,405) | |||||||||||||||||||
Income tax (provision) benefit
|
46 | 192 | (33) | 196 | |||||||||||||||||||
Net income (loss) | (169) | (852) | 19 | (1,209) | |||||||||||||||||||
Net (income) loss attributable to noncontrolling interests
|
1 | 5 | 2 | 6 | |||||||||||||||||||
Net income (loss) attributable to Hertz Global
|
$ | (168) | $ | (847) | $ | 21 | $ | (1,203) | |||||||||||||||
Weighted-average shares outstanding: | |||||||||||||||||||||||
Basic | 160 | 144 | 158 | 143 | |||||||||||||||||||
Diluted | 160 | 144 | 158 | 143 | |||||||||||||||||||
Earnings (loss) per share:
|
|||||||||||||||||||||||
Basic earnings (loss) per share
|
$ | (1.05) | $ | (5.86) | $ | 0.13 | $ | (8.39) | |||||||||||||||
Diluted earnings (loss) per share
|
$ | (1.05) | $ | (5.86) | $ | 0.13 | $ | (8.39) |
Three Months Ended
June 30, |
Six Months Ended
June 30, |
||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Net income (loss) | $ | (169) | $ | (852) | $ | 19 | $ | (1,209) | |||||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||
Foreign currency translation adjustments
|
(7) | 15 | 10 | (26) | |||||||||||||||||||
Net gain (loss) on pension and postretirement benefit plans | — | (15) | — | (14) | |||||||||||||||||||
Reclassification from other comprehensive income (loss) to other (income) expense for amortization of actuarial net losses | — | 4 | — | 5 | |||||||||||||||||||
Total other comprehensive income (loss) before income taxes | (7) | 4 | 10 | (35) | |||||||||||||||||||
Income tax (provision) benefit related to pension and postretirement benefit plans | — | 4 | — | 4 | |||||||||||||||||||
Income tax (provision) benefit related to reclassified amounts of net periodic costs on pension and postretirement benefit plans | — | (1) | — | (1) | |||||||||||||||||||
Total other comprehensive income (loss) | (7) | 7 | 10 | (32) | |||||||||||||||||||
Total comprehensive income (loss)
|
(176) | (845) | 29 | (1,241) | |||||||||||||||||||
Comprehensive (income) loss attributable to noncontrolling interests | 1 | 5 | 2 | 6 | |||||||||||||||||||
Comprehensive income (loss) attributable to Hertz Global
|
$ | (175) | $ | (840) | $ | 31 | $ | (1,235) |
Preferred Stock
Shares |
Preferred Stock
Amount |
Common Stock Shares | Common Stock Amount |
Additional
Paid-In Capital |
Accumulated
Deficit |
Accumulated
Other Comprehensive Income (Loss) |
Treasury Stock Shares | Treasury Stock Amount |
Stockholders'
Equity Attributable to Hertz Global |
Non-
controlling Interests |
Total Stockholders' Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2019 | — | $ | — | 142 | $ | 1 | $ | 3,024 | $ | (967) | $ | (189) | 2 | $ | (100) | $ | 1,769 | $ | 119 | $ | 1,888 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | — | (356) | — | — | — | (356) | (1) | (357) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | — | — | (39) | — | — | (39) | — | (39) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net settlement on vesting of restricted stock | — | — | — | — | (2) | — | — | — | — | (2) | — | (2) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contributions from noncontrolling interests | — | — | — | — | — | — | — | — | — | — | 1 | 1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
March 31, 2020 | — | — | 142 | 1 | 3,022 | (1,323) | (228) | 2 | (100) | 1,372 | 119 | 1,491 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | — | (847) | — | — | — | (847) | (5) | (852) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | — | — | 7 | — | — | 7 | — | 7 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation charges | — | — | — | — | (2) | — | — | — | — | (2) | — | (2) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock issuance, net | — | — | 14 | 1 | 28 | — | — | — | — | 29 | — | 29 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2020 | — | $ | — | 156 | $ | 2 | $ | 3,048 | $ | (2,170) | $ | (221) | 2 | $ | (100) | $ | 559 | $ | 114 | $ | 673 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Mezzanine Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred Stock
Shares |
Preferred Stock
Amount |
Common Stock Shares | Common Stock Amount |
Additional
Paid-In Capital |
Retained Earnings (Accumulated
Deficit)(1)
|
Accumulated
Other Comprehensive Income (Loss) |
Treasury Stock Shares | Treasury Stock Amount |
Stockholders'
Equity Attributable to Hertz Global |
Non-
controlling Interests |
Total Stockholders' Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2020 | — | $ | — | 156 | $ | 2 | $ | 3,047 | $ | (2,681) | $ | (212) | 2 | $ | (100) | $ | 56 | $ | 37 | $ | 93 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | — | 190 | — | — | — | 190 | (1) | 189 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | — | — | 17 | — | — | 17 | — | 17 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation charges | — | — | — | — | 2 | — | — | — | — | 2 | — | 2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | — | — | — | — | — | — | (11) | (11) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
March 31, 2021 | — | — | 156 | 2 | 3,049 | (2,491) | (195) | 2 | (100) | 265 | 25 | 290 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | — | (168) | — | — | — | (168) | (1) | (169) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | — | — | (7) | — | — | (7) | — | (7) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cancellation of common and treasury shares in exchange for new common shares | — | — | (142) | (2) | (98) | — | — | (2) | 100 | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cancellation of stock-based awards | — | — | — | — | (10) | — | — | — | — | (10) | — | (10) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions to common stockholders | — | — | — | — | (239) | — | — | — | — | (239) | — | (239) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contribution from Plan Sponsors | — | — | 277 | 3 | 2,778 | — | — | — | — | 2,781 | — | 2,781 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Rights Offering, net | — | — | 180 | 2 | 1,796 | — | — | — | — | 1,798 | — | 1,798 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Public Warrants issuance | — | — | — | — | (800) | — | — | — | — | (800) | — | (800) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred stock issuance, net | 2 | 1,433 | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions to non-controlling interests, net | — | — | — | — | — | — | — | — | — | — | (5) | (5) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2021 | 2 | $ | 1,433 | 471 | $ | 5 | $ | 6,476 | $ | (2,659) | $ | (202) | — | $ | — | $ | 3,620 | $ | 19 | $ | 3,639 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six Months Ended
June 30, |
|||||||||||
2021 | 2020 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net income (loss) | $ | 19 | $ | (1,209) | |||||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
|
|||||||||||
Depreciation and reserves for revenue earning vehicles | 420 | 1,393 | |||||||||
Depreciation and amortization, non-vehicle | 104 | 110 | |||||||||
Amortization of deferred financing costs and debt discount (premium) | 98 | 26 | |||||||||
Loss on extinguishment of debt | 8 | 3 | |||||||||
Provision for receivables allowance | 64 | 32 | |||||||||
Deferred income taxes, net | (16) | (205) | |||||||||
Technology-related intangible and other asset impairments | — | 193 | |||||||||
Reorganization items, net | 314 | (1) | |||||||||
(Gain) loss from the sale of a business | (400) | — | |||||||||
(Gain) loss on sale of non-vehicle capital assets | (6) | (24) | |||||||||
Other | — | (1) | |||||||||
Changes in assets and liabilities: | |||||||||||
Non-vehicle receivables | (214) | 287 | |||||||||
Prepaid expenses and other assets | (67) | (4) | |||||||||
Operating lease right-of-use assets | 154 | 189 | |||||||||
Non-vehicle accounts payable | 94 | 168 | |||||||||
Accrued liabilities | (11) | (61) | |||||||||
Accrued taxes, net | 91 | (20) | |||||||||
Operating lease liabilities | (160) | (195) | |||||||||
Self-insured liabilities | (27) | (55) | |||||||||
Net cash provided by (used in) operating activities | 465 | 626 | |||||||||
Cash flows from investing activities: | |||||||||||
Revenue earning vehicles expenditures | (4,136) | (4,956) | |||||||||
Proceeds from disposal of revenue earning vehicles | 1,199 | 5,005 | |||||||||
Non-vehicle capital asset expenditures | (17) | (72) | |||||||||
Proceeds from non-vehicle capital assets disposed of or to be disposed of | 10 | 50 | |||||||||
Sales of marketable securities | — | 74 | |||||||||
Collateral payments | (303) | — | |||||||||
Collateral returned in exchange for letters of credit | 114 | — | |||||||||
Proceeds from the sale of a business, net of cash sold | 818 | — | |||||||||
Other | (1) | (1) | |||||||||
Net cash provided by (used in) investing activities | (2,316) | 100 | |||||||||
Cash flows from financing activities: | |||||||||||
Proceeds from issuance of vehicle debt | 8,939 | 4,174 | |||||||||
Repayments of vehicle debt | (8,120) | (4,613) |
Six Months Ended
June 30, |
|||||||||||
2021 | 2020 | ||||||||||
Proceeds from issuance of non-vehicle debt | 3,139 | 1,498 | |||||||||
Repayments of non-vehicle debt | (6,341) | (853) | |||||||||
Payment of financing costs | (151) | (11) | |||||||||
Proceeds from Plan Sponsors | 2,781 | — | |||||||||
Proceeds from Rights Offering, net | 1,635 | — | |||||||||
Proceeds from the issuance of preferred stock, net | 1,433 | — | |||||||||
Distributions to common stockholders | (239) | — | |||||||||
Proceeds from the issuance of stock, net | — | 29 | |||||||||
Early redemption payments | (85) | — | |||||||||
Contributions from (distributions to) noncontrolling interests | (15) | — | |||||||||
Other | — | (2) | |||||||||
Net cash provided by (used in) financing activities | 2,976 | 222 | |||||||||
Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents
|
(8) | 3 | |||||||||
Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents during the period
|
1,117 | 951 | |||||||||
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period(1)
|
1,578 | 1,360 | |||||||||
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period | $ | 2,695 | $ | 2,311 | |||||||
Supplemental disclosures of cash flow information: | |||||||||||
Cash paid during the period for: | |||||||||||
Interest, net of amounts capitalized: | |||||||||||
Vehicle | $ | 203 | $ | 193 | |||||||
Non-vehicle | 158 | 67 | |||||||||
Income taxes, net of refunds | 2 | 3 | |||||||||
Supplemental disclosures of non-cash information: | |||||||||||
Purchases of revenue earning vehicles included in accounts payable, net of incentives
|
$ | 39 | $ | 43 | |||||||
Sales of revenue earning vehicles included in vehicle receivables | 33 | 759 | |||||||||
Purchases of non-vehicle capital assets included in accounts payable | 24 | 4 | |||||||||
Purchases of non-vehicle capital assets included in liabilities subject to compromise
|
— | 31 | |||||||||
Revenue earning vehicles and non-vehicle capital assets acquired through capital lease | 56 | 10 | |||||||||
Public Warrants issuance | 800 | — | |||||||||
Backstop equity issuance | 164 | — | |||||||||
June 30, 2021 | December 31, 2020 | ||||||||||||||||
ASSETS | |||||||||||||||||
Cash and cash equivalents | $ | 1,820 | $ | 1,096 | |||||||||||||
Restricted cash and cash equivalents: | |||||||||||||||||
Vehicle | 247 | 50 | |||||||||||||||
Non-vehicle | 628 | 333 | |||||||||||||||
Total restricted cash and cash equivalents | 875 | 383 | |||||||||||||||
Total cash, cash equivalents, restricted cash and restricted cash equivalents | 2,695 | 1,479 | |||||||||||||||
Receivables: | |||||||||||||||||
Vehicle | 87 | 164 | |||||||||||||||
Non-vehicle, net of allowance of $58 and $46, respectively
|
937 | 613 | |||||||||||||||
Total receivables, net | 1,024 | 777 | |||||||||||||||
Due from Hertz Holdings | — | 1 | |||||||||||||||
Prepaid expenses and other assets | 1,184 | 372 | |||||||||||||||
Revenue earning vehicles: | |||||||||||||||||
Vehicles | 9,563 | 7,540 | |||||||||||||||
Less: accumulated depreciation | (1,573) | (1,478) | |||||||||||||||
Total revenue earning vehicles, net | 7,990 | 6,062 | |||||||||||||||
Property and equipment, net | 618 | 666 | |||||||||||||||
Operating lease right-of-use assets | 1,504 | 1,675 | |||||||||||||||
Intangible assets, net | 2,947 | 2,992 | |||||||||||||||
Goodwill | 1,045 | 1,045 | |||||||||||||||
Assets held for sale | — | 1,811 | |||||||||||||||
Total assets(a)
|
$ | 19,007 | $ | 16,880 | |||||||||||||
LIABILITIES AND STOCKHOLDER'S EQUITY (DEFICIT) | |||||||||||||||||
Accounts payable: | |||||||||||||||||
Vehicle | $ | 93 | $ | 29 | |||||||||||||
Non-vehicle | 687 | 389 | |||||||||||||||
Total accounts payable | 780 | 418 | |||||||||||||||
Accrued liabilities | 945 | 759 | |||||||||||||||
Accrued taxes, net | 232 | 121 | |||||||||||||||
Debt: | |||||||||||||||||
Vehicle | 7,035 | 6,024 | |||||||||||||||
Non-vehicle | 1,514 | 243 | |||||||||||||||
Total debt | 8,549 | 6,267 | |||||||||||||||
Operating lease liabilities | 1,459 | 1,636 | |||||||||||||||
Self-insured liabilities | 459 | 488 | |||||||||||||||
Deferred income taxes, net | 715 | 735 | |||||||||||||||
Total liabilities not subject to compromise | 13,139 | 10,424 | |||||||||||||||
Liabilities subject to compromise | — | 5,030 | |||||||||||||||
Liabilities held for sale | — | 1,431 | |||||||||||||||
Total liabilities(a)
|
13,139 | 16,885 | |||||||||||||||
Commitments and contingencies | |||||||||||||||||
Stockholder's equity (deficit): | |||||||||||||||||
Common stock, $0.01 par value, 100 and 100 shares issued and outstanding, respectively
|
— | — | |||||||||||||||
Additional paid-in capital | 9,583 | 3,953 | |||||||||||||||
Due to Hertz Holdings | 65 | — | |||||||||||||||
Retained earnings (Accumulated deficit) | (3,597) | (3,783) | |||||||||||||||
Accumulated other comprehensive income (loss) | (202) | (212) | |||||||||||||||
Stockholder's equity (deficit) attributable to Hertz | 5,849 | (42) | |||||||||||||||
Noncontrolling interests | 19 | 37 | |||||||||||||||
Total stockholder's equity (deficit) | 5,868 | (5) | |||||||||||||||
Total liabilities and stockholder's equity (deficit) | $ | 19,007 | $ | 16,880 |
Three Months Ended
June 30, |
Six Months Ended
June 30, |
||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Revenues | $ | 1,873 | $ | 832 | $ | 3,161 | $ | 2,755 | |||||||||||||||
Expenses: | |||||||||||||||||||||||
Direct vehicle and operating | 946 | 652 | 1,724 | 1,845 | |||||||||||||||||||
Depreciation of revenue earning vehicles and lease charges | 116 | 609 | 359 | 1,285 | |||||||||||||||||||
Non-vehicle depreciation and amortization | 50 | 57 | 104 | 110 | |||||||||||||||||||
Selling, general and administrative | 172 | 164 | 321 | 368 | |||||||||||||||||||
Interest expense, net: | |||||||||||||||||||||||
Vehicle | 98 | 132 | 202 | 250 | |||||||||||||||||||
Non-vehicle (excludes contractual interest of $22 million for the three and six months ended June 30, 2020)
|
91 | 43 | 135 | 99 | |||||||||||||||||||
Total interest expense, net | 189 | 175 | 337 | 349 | |||||||||||||||||||
Technology-related intangible and other asset impairments | — | 193 | — | 193 | |||||||||||||||||||
Write-off of intercompany loan | — | 133 | — | 133 | |||||||||||||||||||
Other (income) expense, net | (10) | 2 | (13) | (15) | |||||||||||||||||||
Reorganization items, net | 469 | 23 | 513 | 23 | |||||||||||||||||||
(Gain) from the sale of a business | (8) | — | (400) | — | |||||||||||||||||||
Total expenses | 1,924 | 2,008 | 2,945 | 4,291 | |||||||||||||||||||
Income (loss) before income taxes
|
(51) | (1,176) | 216 | (1,536) | |||||||||||||||||||
Income tax (provision) benefit
|
46 | 219 | (33) | 224 | |||||||||||||||||||
Net income (loss)
|
(5) | (957) | 183 | (1,312) | |||||||||||||||||||
Net (income) loss attributable to noncontrolling interests
|
1 | 5 | 2 | 6 | |||||||||||||||||||
Net income (loss) attributable to Hertz
|
$ | (4) | $ | (952) | $ | 185 | $ | (1,306) |
Three Months Ended
June 30, |
Six Months Ended
June 30, |
||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Net income (loss) | $ | (5) | $ | (957) | $ | 183 | $ | (1,312) | |||||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||
Foreign currency translation adjustments
|
(7) | 15 | 10 | (26) | |||||||||||||||||||
Net gain (loss) on pension and postretirement benefit plans | — | (15) | — | (14) | |||||||||||||||||||
Reclassification from other comprehensive income (loss) to other (income) expense for amortization of actuarial net losses | — | 4 | — | 5 | |||||||||||||||||||
Total other comprehensive income (loss) before income taxes | (7) | 4 | 10 | (35) | |||||||||||||||||||
Income tax (provision) benefit related to pension and postretirement benefit plans | — | 4 | — | 4 | |||||||||||||||||||
Income tax (provision) benefit related to reclassified amounts of net periodic costs on pension and postretirement benefit plans | — | (1) | — | (1) | |||||||||||||||||||
Total other comprehensive income (loss) | (7) | 7 | 10 | (32) | |||||||||||||||||||
Total comprehensive income (loss)
|
(12) | (950) | 193 | (1,344) | |||||||||||||||||||
Comprehensive (income) loss attributable to noncontrolling interests | 1 | 5 | 2 | 6 | |||||||||||||||||||
Comprehensive income (loss) attributable to Hertz | $ | (11) | $ | (945) | $ | 195 | $ | (1,338) |
Common Stock Shares | Common Stock Amount |
Additional
Paid-In Capital |
Due From Affiliate |
Accumulated
Deficit(1)
|
Accumulated
Other Comprehensive Income (Loss) |
Stockholder's Equity Attributable to Hertz | Noncontrolling Interests | Total Stockholder's Equity | |||||||||||||||||||||||||||||||||||||||||||||
Balance as of: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2019 | 100 | $ | — | $ | 3,955 | $ | (64) | $ | (1,937) | $ | (189) | $ | 1,765 | $ | 119 | $ | 1,884 | ||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | (355) | — | (355) | (1) | (356) | ||||||||||||||||||||||||||||||||||||||||||||
Due from Hertz Holdings | — | — | — | (3) | — | — | (3) | — | (3) | ||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | — | (39) | (39) | — | (39) | ||||||||||||||||||||||||||||||||||||||||||||
Contributions from noncontrolling interests | — | — | — | — | — | — | — | 1 | 1 | ||||||||||||||||||||||||||||||||||||||||||||
March 31, 2020 | 100 | — | 3,955 | (67) | (2,292) | (228) | 1,368 | 119 | 1,487 | ||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | (951) | — | (951) | (5) | (956) | ||||||||||||||||||||||||||||||||||||||||||||
Due from Hertz Holdings | — | — | — | (1) | — | — | (1) | — | (1) | ||||||||||||||||||||||||||||||||||||||||||||
Liabilities subject to compromise(2)
|
— | — | — | (65) | — | — | (65) | — | (65) | ||||||||||||||||||||||||||||||||||||||||||||
Write-off of intercompany loan(3)
|
— | — | — | 133 | — | — | 133 | — | 133 | ||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | — | 7 | 7 | — | 7 | ||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation charges | — | — | (2) | — | — | — | (2) | — | (2) | ||||||||||||||||||||||||||||||||||||||||||||
June 30, 2020 | 100 | $ | — | $ | 3,953 | $ | — | $ | (3,243) | $ | (221) | $ | 489 | $ | 114 | $ | 603 | ||||||||||||||||||||||||||||||||||||
Common Stock Shares | Common Stock Amount |
Additional
Paid-In Capital |
Due To Affiliate |
Accumulated
Deficit(1)
|
Accumulated
Other Comprehensive Income (Loss) |
Stockholder's Equity Attributable to Hertz | Noncontrolling Interests | Total Stockholder's Equity (Deficit) | |||||||||||||||||||||||||||||||||||||||||||||
Balance as of: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2020 | 100 | $ | — | $ | 3,953 | $ | — | $ | (3,783) | $ | (212) | $ | (42) | $ | 37 | $ | (5) | ||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | 190 | — | 190 | (1) | 189 | ||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | — | 17 | 17 | — | 17 | ||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation charges | — | — | 2 | — | — | — | 2 | — | 2 | ||||||||||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | — | — | — | (11) | (11) | ||||||||||||||||||||||||||||||||||||||||||||
March 31, 2021 | 100 | — | 3,955 | — | (3,593) | (195) | 167 | 25 | 192 | ||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | (4) | — | (4) | (1) | (5) | ||||||||||||||||||||||||||||||||||||||||||||
Due to Hertz Holdings | — | — | — | 65 | — | — | 65 | — | 65 | ||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | — | (7) | (7) | — | (7) | ||||||||||||||||||||||||||||||||||||||||||||
Cancellation of stock-based awards | — | — | (10) | — | — | — | (10) | — | (10) | ||||||||||||||||||||||||||||||||||||||||||||
Contributions from Hertz Holdings | — | — | 5,638 | — | — | — | 5,638 | — | 5,638 | ||||||||||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | — | — | — | (5) | (5) | ||||||||||||||||||||||||||||||||||||||||||||
June 30, 2021 | 100 | $ | — | $ | 9,583 | $ | 65 | $ | (3,597) | $ | (202) | $ | 5,849 | $ | 19 | $ | 5,868 | ||||||||||||||||||||||||||||||||||||
Six Months Ended
June 30, |
|||||||||||
2021 | 2020 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net income (loss) | $ | 183 | $ | (1,312) | |||||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
|
|||||||||||
Depreciation and reserves for revenue earning vehicles | 420 | 1,393 | |||||||||
Depreciation and amortization, non-vehicle | 104 | 110 | |||||||||
Amortization of deferred financing costs and debt discount (premium) | 98 | 26 | |||||||||
Loss on extinguishment of debt | 8 | 3 | |||||||||
Provision for receivables allowance | 64 | 32 | |||||||||
Deferred income taxes, net | (16) | (232) | |||||||||
Technology-related intangible and other asset impairments | — | 193 | |||||||||
Write-off of intercompany loan | — | 133 | |||||||||
Reorganization items, net | 150 | (1) | |||||||||
(Gain) loss from the sale of a business | (400) | — | |||||||||
(Gain) loss on sale of non-vehicle capital assets | (6) | (24) | |||||||||
Other | — | (1) | |||||||||
Changes in assets and liabilities: | |||||||||||
Non-vehicle receivables | (214) | 287 | |||||||||
Prepaid expenses and other assets | (67) | (4) | |||||||||
Operating lease right-of-use assets | 154 | 189 | |||||||||
Non-vehicle accounts payable | 94 | 168 | |||||||||
Accrued liabilities | (11) | (61) | |||||||||
Accrued taxes, net | 91 | (20) | |||||||||
Operating lease liabilities | (160) | (195) | |||||||||
Self-insured liabilities | (27) | (55) | |||||||||
Net cash provided by (used in) operating activities | 465 | 629 | |||||||||
Cash flows from investing activities: | |||||||||||
Revenue earning vehicles expenditures | (4,136) | (4,956) | |||||||||
Proceeds from disposal of revenue earning vehicles | 1,199 | 5,005 | |||||||||
Non-vehicle capital asset expenditures | (17) | (72) | |||||||||
Proceeds from non-vehicle capital assets disposed of or to be disposed of | 10 | 50 | |||||||||
Sales of marketable securities | — | 74 | |||||||||
Collateral payments | (303) | — | |||||||||
Collateral returned in exchange for letters of credit | 114 | — | |||||||||
Proceeds from the sale of a business, net of cash sold | 818 | — | |||||||||
Other | (1) | (1) | |||||||||
Net cash provided by (used in) investing activities | (2,316) | 100 | |||||||||
Cash flows from financing activities: | |||||||||||
Proceeds from issuance of vehicle debt | 8,939 | 4,174 |
Six Months Ended
June 30, |
|||||||||||
2021 | 2020 | ||||||||||
Repayments of vehicle debt | (8,120) | (4,613) | |||||||||
Proceeds from issuance of non-vehicle debt | 3,139 | 1,498 | |||||||||
Repayments of non-vehicle debt | (6,341) | (853) | |||||||||
Payment of financing costs | (151) | (11) | |||||||||
Contributions from Hertz Holdings | 5,638 | — | |||||||||
Advances to Hertz Holdings | — | (4) | |||||||||
Early redemption payments | (85) | — | |||||||||
Contributions from (distributions to) noncontrolling interests | (15) | — | |||||||||
Other | — | (1) | |||||||||
Net cash provided by (used in) financing activities | 3,004 | 190 | |||||||||
Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents
|
(8) | 3 | |||||||||
Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents during the period
|
1,145 | 922 | |||||||||
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period(1)
|
1,550 | 1,360 | |||||||||
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period | $ | 2,695 | $ | 2,282 | |||||||
Supplemental disclosures of cash flow information: | |||||||||||
Cash paid during the period for: | |||||||||||
Interest, net of amounts capitalized: | |||||||||||
Vehicle | $ | 203 | $ | 193 | |||||||
Non-vehicle | 158 | 67 | |||||||||
Income taxes, net of refunds | 2 | 3 | |||||||||
Supplemental disclosures of non-cash information: | |||||||||||
Purchases of revenue earning vehicles included in accounts payable, net of incentives
|
$ | 39 | $ | 43 | |||||||
Sales of revenue earning vehicles included in vehicle receivables | 33 | 759 | |||||||||
Purchases of non-vehicle capital assets included in accounts payable | 24 | 4 | |||||||||
Purchases of non-vehicle capital assets included in liabilities subject to compromise
|
— | 31 | |||||||||
Revenue earning vehicles and non-vehicle capital assets acquired through capital lease | 56 | 10 | |||||||||
(In millions) |
June 30,
2021 |
December 31,
2020 |
||||||||||||
Revenue earning vehicles | $ | 9,413 | $ | 7,492 | ||||||||||
Less accumulated depreciation | (1,525) | (1,467) | ||||||||||||
7,888 | 6,025 | |||||||||||||
Revenue earning vehicles held for sale, net(1)
|
102 | 37 | ||||||||||||
Revenue earning vehicles, net | $ |