View Filing Data

$ 761

$ 1,072

Total cash, cash equivalents, restricted cash and restricted cash equivalents

265

432

1,026

1,504

1,805

1,365

991

687

Revenue earning vehicles:

16,972

14,574

Total revenue earning vehicles, net

(3,395)

(3,238)

13,577

11,336

Property and equipment:

Land, buildings and leasehold improvements

1,214

1,233

Service equipment and other

786

763

Total property and equipment, net

(1,219)

(1,156)

781

840

3,197

3,242

1,083

1,084

^[1]

22,460

20,058

1,004

946

1,306

920

181

160

17,158

14,865

439

427

1,145

1,220

Commitments and contingencies

^[1]

21,233

18,538

Stockholders' equity:

Preferred Stock, $0.01 par value, no shares issued and outstanding

Common Stock

Additional paid-in capital

2,256

2,243

Accumulated other comprehensive income (loss)

(819)

(506)

(135)

(118)

Treasury Stock, at cost, 2 shares and 2 shares

(100)

1,203

1,520

1,227

1,520

22,460

20,058

ASSETS

236

386

796

531

239

294

12,737

10,431

Non-vehicle

ASSETS

1,009

834

765

652

4,421

4,434

ASSETS

761

1,072

Total cash, cash equivalents, restricted cash and restricted cash equivalents

265

432

1,026

1,504

1,805

1,365

991

687

Revenue earning vehicles:

16,972

14,574

Total revenue earning vehicles, net

(3,395)

(3,238)

13,577

11,336

Property and equipment:

Land, buildings and leasehold improvements

1,214

1,233

Service equipment and other

786

763

Total property and equipment, net

(1,219)

(1,156)

781

840

3,197

3,242

1,083

1,084

^[2]

22,460

20,058

1,004

946

1,306

920

181

160

17,158

14,865

439

427

1,146

1,220

Commitments and contingencies

^[2]

21,234

18,538

Stockholders' equity:

Common Stock

Additional paid-in capital

3,183

3,166

Due from affiliate

(50)

(42)

Accumulated other comprehensive income (loss)

(1,796)

(1,486)

(135)

(118)

1,202

1,520

1,226

1,520

The Hertz Corporation | Vehicles

22,460

20,058

ASSETS

236

386

796

531

239

294

The Hertz Corporation | Non-vehicle

12,737

10,431

ASSETS

1,009

834

765

652

Organization, Consolidation and Presentation of Financial Statements [Abstract]

$ 4,421

$ 4,434

[1]

Hertz Global Holdings, Inc.'s consolidated total assets as of September 30, 2018 and December 31, 2017 include total assets of variable interest entities (“VIEs”) of $800 million and $524 million, respectively, which can only be used to settle obligations of the VIEs. Hertz Global Holdings, Inc.'s consolidated total liabilities as of September 30, 2018 and December 31, 2017 include total liabilities of VIEs of $776 million and $524 million, respectively, for which the creditors of the VIEs have no recourse to Hertz Global Holdings, Inc. See "Special Purpose Entities" in Note 6, "Debt," and "Other Relationships" in Note 12, "Related Party Transactions," for further information.

[2]

The Hertz Corporation's consolidated total assets as of September 30, 2018 and December 31, 2017 include total assets of variable interest entities (“VIEs”) of $800 million and $524 million, respectively, which can only be used to settle obligations of the VIEs. The Hertz Corporation's consolidated total liabilities as of September 30, 2018 and December 31, 2017 include total liabilities of VIEs of $776 million and $524 million, respectively, for which the creditors of the VIEs have no recourse to the Hertz Corporation. See "Special Purpose Entities" in Note 6, "Debt," and "Other Relationships" in Note 12, "Related Party Transactions," for further information.

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017
Preferred Stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred Stock, shares issued	0	0
Preferred Stock, shares outstanding	0	0
Common Stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common Stock, shares issued	86,000,000	86,000,000
Common Stock, shares outstanding	84,000,000	84,000,000
Treasury Stock, shares repurchased	2,000,000	2,000,000
Non-vehicle
Receivables, allowance for doubtful accounts (in dollars)	$ 29	$ 33
The Hertz Corporation
Receivables, allowance for doubtful accounts (in dollars)	$ 29	$ 33
Common Stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common Stock, shares issued	100	100
Common Stock, shares outstanding	100	100
VIE, total assets	$ 800	$ 524
VIE, total liabilities	$ 776	$ 524

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Revenues:
Worldwide vehicle rental	$ 2,584	$ 2,413	$ 6,694	$ 6,240
All other operations	174	159	515	473
Revenues	2,758	2,572	7,209	6,713
Expenses:
Direct vehicle and operating	1,459	1,348	4,043	3,735
Depreciation of revenue earning vehicles and lease charges, net	672	700	2,020	2,144
Selling, general and administrative	265	217	765	661
Total interest expense, net	188	176	554	465
Intangible asset impairments	0	0	0	86
Other (income) expense, net	(7)	(12)	(36)	19
Total expenses	2,577	2,429	7,346	7,110
Income (loss) before income taxes	181	143	(137)	(397)
Income tax (provision) benefit	(41)	(50)	12	108
Net income (loss)	140	93	(125)	(289)
Net (income) loss attributable to noncontrolling interests	1	0	1	0
Net income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder	$ 141	$ 93	$ (124)	$ (289)
Weighted average shares outstanding:
Basic (in shares)	84	83	83	83
Diluted (in shares)	84	83	83	83
Earnings (loss) per share - basic and diluted:
Basic earnings (loss) per share (in dollars per share)	$ 1.68	$ 1.12	$ (1.49)	$ (3.48)
Diluted earnings (loss) per share (in dollars per share)	$ 1.68	$ 1.12	$ (1.49)	$ (3.48)
Vehicles
Expenses:
Total interest expense, net	$ 115	$ 90	$ 336	$ 242
Non-vehicle
Expenses:
Total interest expense, net	73	86	218	223
The Hertz Corporation
Revenues:
Worldwide vehicle rental	2,584	2,413	6,694	6,240
All other operations	174	159	515	473
Revenues	2,758	2,572	7,209	6,713
Expenses:
Direct vehicle and operating	1,459	1,348	4,043	3,735
Depreciation of revenue earning vehicles and lease charges, net	672	700	2,020	2,144
Selling, general and administrative	265	217	765	661
Total interest expense, net	186	175	549	461
Intangible asset impairments	0	0	0	86
Other (income) expense, net	(7)	(12)	(36)	19
Total expenses	2,575	2,428	7,341	7,106
Income (loss) before income taxes	183	144	(132)	(393)
Income tax (provision) benefit	(42)	(50)	10	107
Net income (loss)	141	94	(122)	(286)
Net (income) loss attributable to noncontrolling interests	1	0	1	0
Net income (loss) attributable to The Hertz Corporation and Subsidiaries' common stockholder	142	94	(121)	(286)
The Hertz Corporation \| Vehicles
Expenses:
Total interest expense, net	115	90	336	242
The Hertz Corporation \| Non-vehicle
Expenses:
Total interest expense, net	$ 71	$ 85	$ 213	$ 219

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Net income (loss)	$ 140	$ 93	$ (125)	$ (289)
Other comprehensive income (loss):
Foreign currency translation adjustments	1	9	(18)	21
Reclassification of realized gain on securities to other (income) expense	0	0	0	(3)
Reclassification of foreign currency items to other (income) expense, net	(1)	8	(1)	8
Net gain (loss) on defined benefit pension plans	(1)	(3)	1	(7)
Reclassification from other comprehensive income (loss) to selling, general and administrative expense for amortization of actuarial (gains) losses on defined benefit pension plans	0	1	0	3
Reclassification from other comprehensive income (loss) to other income/expense for amortization of actuarial (gains) losses on defined benefit pension plans	2	0	2	0
Total other comprehensive income (loss) before income taxes	1	15	(16)	22
Income tax (provision) benefit related to reclassified amounts of net periodic costs on defined benefit pension plans	(1)	0	(1)	(1)
Total other comprehensive income (loss)	0	15	(17)	21
Total comprehensive income (loss)	140	108	(142)	(268)
Comprehensive (income) loss attributable to non-controlling interests	1	0	1	0
Comprehensive income (loss) attributable to Hertz Global	141	108	(141)	(268)
The Hertz Corporation
Net income (loss)	141	94	(122)	(286)
Other comprehensive income (loss):
Foreign currency translation adjustments	1	9	(18)	21
Reclassification of realized gain on securities to other (income) expense	0	0	0	(3)
Reclassification of foreign currency items to other (income) expense, net	(1)	8	(1)	8
Net gain (loss) on defined benefit pension plans	(1)	(3)	1	(7)
Reclassification from other comprehensive income (loss) to selling, general and administrative expense for amortization of actuarial (gains) losses on defined benefit pension plans	0	1	0	3
Reclassification from other comprehensive income (loss) to other income/expense for amortization of actuarial (gains) losses on defined benefit pension plans	2	0	2	0
Total other comprehensive income (loss) before income taxes	1	15	(16)	22
Income tax (provision) benefit related to reclassified amounts of net periodic costs on defined benefit pension plans	(1)	0	(1)	(1)
Total other comprehensive income (loss)	0	15	(17)	21
Total comprehensive income (loss)	141	109	(139)	(265)
Comprehensive (income) loss attributable to non-controlling interests	1	0	1	0
Comprehensive income (loss) attributable to Hertz Global	$ 142	$ 109	$ (138)	$ (265)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Cash flows from operating activities:
Net income (loss)	$ (125)	$ (289)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation of revenue earning vehicles, net	1,952	2,089
Depreciation and amortization, non-vehicle	166	182
Amortization of deferred financing costs and debt discount (premium)	36	33
Loss on extinguishment of debt	22	8
Stock-based compensation charges	10	16
Provision for receivables allowance	29	28
Deferred income taxes, net	(39)	(138)
Impairment charges and asset write-downs	0	116
(Gain) loss on marketable securities	(21)	(3)
Gain on sale of Brazil Operations	0	(6)
Other	1	(12)
Changes in assets and liabilities:
Non-vehicle receivables	(217)	(184)
Prepaid expenses and other assets	(58)	(25)
Non-vehicle accounts payable	119	140
Accrued liabilities	106	(5)
Accrued taxes, net	21	9
Public liability and property damage	15	18
Net cash provided by (used in) operating activities	2,017	1,977
Cash flows from investing activities:
Revenue earning vehicles expenditures	(10,076)	(8,683)
Proceeds from disposal of revenue earning vehicles	5,378	5,285
Capital asset expenditures, non-vehicle	(119)	(124)
Proceeds from property and other equipment disposed of or to be disposed of	47	18
Proceeds from sale of Brazil Operations, net of retained cash	0	94
Purchases of marketable securities	(60)	0
Sales of marketable securities	36	9
Other	(5)	(4)
Net cash provided by (used in) investing activities	(4,799)	(3,405)
Cash flows from financing activities:
Payment of financing costs	(30)	(43)
Early redemption premium payment	(19)	(5)
Contributions from noncontrolling interest owners	25	0
Other	(3)	(1)
Net cash provided by (used in) financing activities	2,308	2,085
Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents	(4)	26
Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents during the period	(478)	683
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period	1,504	1,094
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period	1,026	1,777
Cash paid during the period for:
Income taxes, net of refunds	15	40
Supplemental disclosures of non-cash flow information:
Purchases of revenue earning vehicles included in accounts payable and accrued liabilities, net of incentives	101	69
Purchases of non-vehicle capital assets included in accounts payable	43	49
Revenue earning vehicles and non-vehicle capital assets acquired through capital lease	17	24
Vehicles
Cash flows from financing activities:
Proceeds from issuance of debt	11,871	6,907
Repayments of debt	(9,525)	(5,887)
Cash paid during the period for:
Interest, net of amounts capitalized:	268	212
Supplemental disclosures of non-cash flow information:
Sales of revenue included in receivables	658	443
Non-vehicle
Cash flows from financing activities:
Proceeds from issuance of debt	387	2,100
Repayments of debt	(398)	(986)
Cash paid during the period for:
Interest, net of amounts capitalized:	171	164
Supplemental disclosures of non-cash flow information:
Sales of revenue included in receivables	3	1
Receivable on sale of Brazil Operations	0	13
The Hertz Corporation
Cash flows from operating activities:
Net income (loss)	(122)	(286)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation of revenue earning vehicles, net	1,952	2,089
Depreciation and amortization, non-vehicle	166	182
Amortization of deferred financing costs and debt discount (premium)	36	33
Loss on extinguishment of debt	22	8
Stock-based compensation charges	10	16
Provision for receivables allowance	29	28
Deferred income taxes, net	(38)	(137)
Impairment charges and asset write-downs	0	116
(Gain) loss on marketable securities	(21)	(3)
Gain on sale of Brazil Operations	0	(6)
Other	1	(12)
Changes in assets and liabilities:
Non-vehicle receivables	(217)	(184)
Prepaid expenses and other assets	(58)	(25)
Non-vehicle accounts payable	119	140
Accrued liabilities	106	(5)
Accrued taxes, net	21	9
Public liability and property damage	15	18
Net cash provided by (used in) operating activities	2,021	1,981
Cash flows from investing activities:
Revenue earning vehicles expenditures	(10,076)	(8,683)
Proceeds from disposal of revenue earning vehicles	5,378	5,285
Capital asset expenditures, non-vehicle	(119)	(124)
Proceeds from property and other equipment disposed of or to be disposed of	47	18
Proceeds from sale of Brazil Operations, net of retained cash	0	94
Purchases of marketable securities	(60)	0
Sales of marketable securities	36	9
Other	(5)	(4)
Net cash provided by (used in) investing activities	(4,799)	(3,405)
Cash flows from financing activities:
Payment of financing costs	(30)	(43)
Early redemption premium payment	(19)	(5)
Contributions from noncontrolling interest owners	25	0
Advances to Hertz Holdings	(7)	(4)
Other	0	(1)
Net cash provided by (used in) financing activities	2,304	2,081
Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents	(4)	26
Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents during the period	(478)	683
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period	1,504	1,094
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period	1,026	1,777
Cash paid during the period for:
Income taxes, net of refunds	15	40
Supplemental disclosures of non-cash flow information:
Purchases of revenue earning vehicles included in accounts payable and accrued liabilities, net of incentives	101	69
Purchases of non-vehicle capital assets included in accounts payable	43	49
Receivable on sale of Brazil Operations	0	13
Revenue earning vehicles and non-vehicle capital assets acquired through capital lease	17	24
The Hertz Corporation \| Vehicles
Cash flows from financing activities:
Proceeds from issuance of debt	11,871	6,907
Repayments of debt	(9,525)	(5,887)
Cash paid during the period for:
Interest, net of amounts capitalized:	268	212
Supplemental disclosures of non-cash flow information:
Sales of revenue included in receivables	658	443
The Hertz Corporation \| Non-vehicle
Cash flows from financing activities:
Proceeds from issuance of debt	387	2,100
Repayments of debt	(398)	(986)
Cash paid during the period for:
Interest, net of amounts capitalized:	171	164
Supplemental disclosures of non-cash flow information:
Sales of revenue included in receivables	$ 3	$ 1

Background	9 Months Ended
Background	Sep. 30, 2018
Background Disclosure [Abstract]
Background	Background Hertz Global Holdings, Inc. ("Hertz Global" when including its subsidiaries and variable interest entities and "Hertz Holdings" excluding its subsidiaries and variable interest entities) was incorporated in Delaware in 2015 to serve as the top-level holding company for Rental Car Intermediate Holdings, LLC, which wholly owns The Hertz Corporation ("Hertz" and interchangeably with Hertz Global, the "Company"), Hertz Global's primary operating company. Hertz was incorporated in Delaware in 1967 and is a successor to corporations that have been engaged in the vehicle rental and leasing business since 1918. Hertz operates its vehicle rental business globally primarily through the Hertz, Dollar and Thrifty brands from company-owned, licensee and franchisee locations in the United States ("U.S."), Africa, Asia, Australia, Canada, the Caribbean, Europe, Latin America, the Middle East and New Zealand. Through its Donlen subsidiary, Hertz provides vehicle leasing and fleet management services.

Basis of Presentation and Recently Issued Accounting Pronouncements

9 Months Ended

Sep. 30, 2018

Basis of Presentation and Recently Issued Accounting Pronouncements

Basis of Presentation

This Quarterly Report on Form 10-Q combines the quarterly reports on Form 10-Q for the quarterly period ended September 30, 2018 of Hertz Global and Hertz. Hertz Global consolidates Hertz for financial statement purposes, therefore, disclosures that relate to activities of Hertz also apply to Hertz Global. In the sections that combine disclosure of Hertz Global and Hertz, this report refers to actions as being actions of the Company, or Hertz Global, which is appropriate because the business is one enterprise and Hertz Global operates the business through Hertz. When appropriate, Hertz Global and Hertz are named specifically for their individual disclosures and any significant differences between the operations and results of Hertz Global and Hertz are separately disclosed and explained.

The Company's unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). In the opinion of management, the unaudited condensed consolidated financial statements reflect all adjustments of a normal recurring nature that are necessary for a fair presentation of the results for the interim periods presented. Interim results are not necessarily indicative of results for a full year.

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and footnotes. Actual results could differ materially from those estimates.

The December 31, 2017 unaudited condensed consolidated balance sheet data is derived from audited financial statements but does not include all disclosures required by U.S. GAAP. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with information included in the Company's Form 10‑K for the year ended December 31, 2017 (the "2017 Form 10‑K"), as filed with the Securities and Exchange Commission ("SEC") on February 27, 2018. Certain prior period amounts have been reclassified to conform with current period presentation.

As disclosed below in "Recently Issued Accounting Pronouncements," the Company adopted the financial statement disclosure guidance "Restricted Cash" on January 1, 2018.

Principles of Consolidation

The unaudited condensed consolidated financial statements of Hertz Global include the accounts of Hertz Global and its wholly owned and majority owned U.S. and international subsidiaries. The unaudited condensed consolidated financial statements of Hertz include the accounts of Hertz and its wholly owned and majority owned U.S. and international subsidiaries. The Company is the primary beneficiary of certain variable interest entities, therefore, the assets, liabilities, results of operations and cash flows of the variable interest entities are included in the Company's unaudited condensed consolidated financial statements. The Company accounts for its investment in joint ventures using the equity method when it has significant influence but not control and is not the primary beneficiary. All significant intercompany transactions have been eliminated in consolidation.

Out of Period Adjustments

The Company identified a misstatement in its 2016 financial statements, related to the income tax provision, that it corrected in the second quarter of 2017. The cumulative impact of the adjustment was an increase in net loss of approximately $10 million. There was no impact to loss before income taxes. The misstatement related to an error in the tax provision for U.S. income of a foreign equity investment transaction for fiscal year 2016. The Company considered both quantitative and qualitative factors in assessing the materiality of the item and determined that the misstatement was not material to any prior period and not material to the nine months ended September 30, 2017.

Recently Issued Accounting Pronouncements

Adopted

Revenue from Contracts with Customers

In May 2014, the Financial Accounting Standards Board (the "FASB") issued guidance that replaced most existing revenue recognition guidance in U.S. GAAP. The FASB also issued several amendments and updates to the new revenue standard (collectively, “Topic 606”). Topic 606 applies to all contracts with customers except for leases, insurance contracts, financial instruments, certain nonmonetary exchanges and certain guarantees. The core principle of Topic 606 is that an entity should recognize revenue from customers for the transfer of goods or services equal to the amount that it expects to be entitled to receive for those goods or services, as well as when an entity should recognize revenue gross as a principal or net as an agent and how an entity should identify performance obligations. Topic 606 requires disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments. The Company adopted Topic 606 on the effective date, January 1, 2018, using a modified retrospective approach applied to all contracts. Prior periods have not been retrospectively adjusted.

The impact to the Company’s financial position, results of operations and cash flows is primarily for revenue associated with the redemption of points earned by customers under the Company’s loyalty programs (“loyalty points”). For transactions that generate loyalty points to the customer, a portion of revenue is deferred until the loyalty points are redeemed by the customer. The amount of revenue deferred is equivalent to the retail value of each loyalty point less an estimated amount representing loyalty points that are not expected to be redeemed.

The cumulative effect of applying the new guidance to all contracts with customers that were not completed as of January 1, 2018 has been recorded as an adjustment to accumulated deficit, net of tax, as of the adoption date as follows:

Hertz Global



(In millions)	Deferred income taxes, net			Accrued liabilities		Total liabilities		Accumulated deficit			Total equity			Total liabilities and equity
As of December 31, 2017	$	1,220		$	920	$	18,538	$	(506	)	$	1,520		$	20,058
Effect of Adopting ASC 606	(51		)	240		189		(189		)	(189		)	—
As of January 1, 2018	$	1,169		$	1,160	$	18,727	$	(695	)	$	1,331		$	20,058

Hertz



(In millions)	Deferred income taxes, net			Accrued liabilities		Total liabilities		Accumulated deficit			Total equity			Total liabilities and equity
As of December 31, 2017	$	1,220		$	920	$	18,538	$	(1,486	)	$	1,520		$	20,058
Effect of Adopting ASC 606	(51		)	240		189		(189		)	(189		)	—
As of January 1, 2018	$	1,169		$	1,160	$	18,727	$	(1,675	)	$	1,331		$	20,058

As disclosed above, the Company adopted Topic 606 on a modified retrospective basis, therefore, historical financial information has not been restated for comparative purposes and continues to be reported under the accounting standards in effect for those periods (“legacy guidance”). The following table presents the amounts for line items in the Company’s unaudited condensed consolidated balance sheet, statement of operations and cash flows impacted by the adoption of Topic 606 as compared to the amounts that would have been recognized in accordance with legacy guidance. The impact to the Company's unaudited condensed consolidated statement of comprehensive income (loss) is comprised solely of the impact to net income (loss) as shown in the table below:

Hertz Global



(In millions, except per share data)	As Reported			Effect of Adoption Increase (Decrease)			Balances Without Adoption
Unaudited Condensed Consolidated Balance Sheet as of September 30, 2018:
Accrued liabilities	$	1,306		$	245		$	1,061
Deferred income taxes, net	1,145			(53		)	1,198
Total liabilities	21,233			192			21,041
Accumulated deficit	(819		)	(192		)	(627		)
Total stockholders' equity	1,227			(192		)	1,419
Unaudited Condensed Consolidated Statement of Operations for the Three Months Ended September 30, 2018:
Worldwide vehicle rental revenues	$	2,584		$	(7	)	$	2,591
Selling, general and administrative expense	265			(1		)	266
Income (loss) before income taxes	181			(6		)	187
Income tax (provision) benefit	(41		)	—			(41		)
Net income (loss)	140			(6		)	146
Net (income) loss attributable to noncontrolling interests	1			—			1
Net income (loss) attributable to Hertz Global	141			(6		)	147
Basic earnings (loss) per share	1.68			(0.07		)	1.75
Diluted earnings (loss) per share	1.68			(0.07		)	1.75
Unaudited Condensed Consolidated Statement of Operations for the Nine Months Ended September 30, 2018:
Worldwide vehicle rental revenues	$	6,694		$	(6	)	$	6,700
Selling, general and administrative expense	765			(1		)	766
Income (loss) before income taxes	(137		)	(5		)	(132		)
Income tax (provision) benefit	12			2			10
Net income (loss)	(125		)	(3		)	(122		)
Net (income) loss attributable to noncontrolling interests	1			—			1
Net income (loss) attributable to Hertz Global	(124		)	(3		)	(121		)
Basic earnings (loss) per share	(1.49		)	(0.04		)	(1.45		)
Diluted earnings (loss) per share	(1.49		)	(0.04		)	(1.45		)
Unaudited Condensed Consolidated Statement of Cash Flow for the Nine Months Ended September 30, 2018:
Cash flows from operating activities:
Net income (loss)	$	(125	)	$	(3	)	$	(122	)
Deferred income taxes, net	(39		)	(2		)	(37		)
Accrued liabilities	106			5			101

Hertz



(In millions, except per share data)	As Reported			Effect of Adoption Increase (Decrease)			Balances Without Adoption
Unaudited Condensed Consolidated Balance Sheet as of September 30, 2018:
Accrued liabilities	$	1,306		$	245		$	1,061
Deferred income taxes, net	1,146			(53		)	1,199
Total liabilities	21,234			192			21,042
Accumulated deficit	(1,796		)	(192		)	(1,604		)
Total stockholders' equity	1,226			(192		)	1,418
Unaudited Condensed Consolidated Statement of Operations for the Three Months Ended September 30, 2018:
Worldwide vehicle rental revenues	$	2,584		$	(7	)	$	2,591
Selling, general and administrative expense	265			(1		)	266
Income (loss) before income taxes	183			(6		)	189
Income tax (provision) benefit	(42		)	—			(42		)
Net income (loss)	141			(6		)	147
Net (income) loss attributable to noncontrolling interests	1			—			1
Net income (loss) attributable to Hertz	142			(6		)	148
Unaudited Condensed Consolidated Statement of Operations for the Nine Months Ended September 30, 2018:
Worldwide vehicle rental revenues	$	6,694		$	(6	)	$	6,700
Selling, general and administrative expense	765			(1		)	766
Income (loss) before income taxes	(132		)	(5		)	(127		)
Income tax (provision) benefit	10			2			8
Net income (loss)	(122		)	(3		)	(119		)
Net (income) loss attributable to noncontrolling interests	1			—			1
Net income (loss) attributable to Hertz	(121		)	(3		)	(118		)
Unaudited Condensed Consolidated Statement of Cash Flow for the Nine Months Ended September 30, 2018:
Cash flows from operating activities:
Net income (loss)	$	(122	)	$	(3	)	$	(119	)
Deferred income taxes, net	(38		)	(2		)	(36		)
Accrued liabilities	106			5			101

See Note 7, "Revenue," for information regarding the Company’s accounting policies for revenue recognition, including the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers, as well as other required disclosures under Topic 606.

Restricted Cash

In November 2016, the FASB issued guidance that clarifies existing guidance on the classification and presentation of restricted cash in the statement of cash flows. The guidance requires entities to show the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. Additionally, entities will no longer present transfers between cash and cash equivalents and restricted cash and restricted cash equivalents in the statement of cash flows. The Company adopted this guidance retrospectively in accordance with the effective date on January 1, 2018.

Adoption of this guidance had no impact on the Company's financial position or results of operations. The impact to the unaudited condensed consolidated statement of cash flows of adopting this guidance is as follows:

Hertz Global



	Nine Months Ended September 30, 2017
(In millions)	As Previously Reported			Adjustments			As Adjusted
Net change in restricted cash and cash equivalents, vehicle	$	89		$	(89	)	$	—
Net cash provided by (used in) investing activities	(3,316		)	(89		)	(3,405		)
Net change in restricted cash and cash equivalents, non-vehicle	(833		)	833			—
Net cash provided by (used in) financing activities	1,252			833			2,085
Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash⁽¹⁾	19			7			26
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period⁽¹⁾	816			278			1,094
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period⁽¹⁾	748			1,029			1,777

Hertz



	Nine Months Ended September 30, 2017
(In millions)	As Previously Reported			Adjustments			As Adjusted
Net change in restricted cash and cash equivalents, vehicle	$	89		$	(89	)	$	—
Net cash provided by (used in) investing activities	(3,316		)	(89		)	(3,405		)
Net change in restricted cash and cash equivalents, non-vehicle	(833		)	833			—
Net cash provided by (used in) financing activities	1,248			833			2,081
Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash⁽¹⁾	19			7			26
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period⁽¹⁾	816			278			1,094
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period⁽¹⁾	748			1,029			1,777


(1)	The amounts as previously reported were comprised of cash and cash equivalents and did not include restricted cash and restricted cash equivalents.

Not Yet Adopted

Leases

In February 2016, the FASB issued guidance that replaces the existing lease guidance in U.S. GAAP. The new guidance ("Topic 842") establishes a right-of-use (“ROU”) model that requires a lessee to record on the balance sheet a ROU asset and corresponding lease liability based on the present value of future lease payments for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. Topic 842 also expands the requirements for lessees to record leases embedded in other arrangements. Additionally, enhanced quantitative and qualitative disclosures surrounding leases are required which provide financial statement users the ability to assess the amount, timing and uncertainty of cash flows arising from leases. Topic 842 is effective for annual periods beginning after December 15, 2018 and interim periods within those annual periods with early adoption permitted. The Company intends to adopt this guidance, in accordance with the effective date, on January 1, 2019. A modified retrospective transition approach is required for both lessees and lessors for existing leases at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The Company intends to avail itself of the allowable practical expedients for existing or expired contracts of lessees and lessors wherein the Company would not be required to reassess whether such contracts contain leases, the lease classification or the initial direct costs. Additionally, with respect to its real estate and fleet leases, the Company intends to avail itself of the practical expedient for lessees which allows it to elect an accounting policy by class of underlying asset to combine lease and non-lease components. The Company does not intend to utilize the practical expedient which allows the use of hindsight by lessees and lessors in determining the lease term and in assessing impairment of its ROU assets. The Company is in the process of evaluating whether to avail itself of other allowable practicable expedients during transition.

In July 2018, the FASB issued guidance related to Topic 842 that provides an additional transition method that would allow the Company to only apply the new lease standard in the year of adoption. Additionally, the guidance provides a practical expedient for lessors that would allow the Company to elect as an accounting policy, by class of underlying asset, to combine non-lease components with the related lease components, if certain conditions are met. This could allow the Company to account for all revenue earned from the operations of rental vehicles and from other forms of rental related activities under the new lease guidance. The Company plans to adopt the new transition method which allows the application of the standard at the adoption date, January 1, 2019, and will recognize a cumulative-effect adjustment to the opening balances of retained earnings in the period of adoption. The Company intends to avail itself of the practical expedient for lessors which allows it to elect an accounting policy by class of underlying asset to combine lease and non-lease components, with respect to its real estate and fleet leases.

Lessee

Adoption of Topic 842 will result in a material increase in the Company's lease-related assets and liabilities on its balance sheet, primarily for leases of rental locations and other assets. Additionally, adoption of this guidance will impact the statement of cash flows with respect to the presentation of the Company's operating activities, but is not expected to impact its presentation of investing or financing activities. Adoption of Topic 842 is not expected to have a material impact on the Company’s results of operations. The Company has reached conclusions on key accounting assessments related to its leases which includes an accounting policy election to not recognize ROU assets or lease liabilities for short-term leases (i.e. those with a term of 12 months or less). The Company is performing an analysis of its lease portfolio to ensure proper application of the new guidance including implementation of internal controls over financial reporting.

Lessor

The Company has concluded that revenue earned from the rental and leasing of vehicles and from other forms of rental related activities wherein an identified asset is transferred to the customer and the customer has the ability to control that asset is within the scope of this guidance and that additional disclosures regarding lease revenue are required upon adoption. The Company is in the process of evaluating the breakdown of its vehicle rental revenues into lease and non-lease components to determine if the recognition timing and pattern of transfer of the non-lease components meet the practical expedient requirements. There is no impact to the nature, timing or recognition of rental lease revenue upon adoption of this guidance.

Reporting Comprehensive Income

In February 2018, the FASB issued guidance that allows a reclassification from accumulated other comprehensive income to retained earnings for the stranded tax effects resulting from the U.S. Tax Cuts and Jobs Act ("TCJA"). The guidance is effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods. The guidance should be applied either in the period of adoption or retrospectively to each period in which the effect of the change in the U.S. federal corporate income tax rate in the TCJA is recognized. The Company will adopt this guidance on January 1, 2019, in accordance with the effective date. Adoption of this guidance will result in a reclassification of certain amounts from accumulated other comprehensive income to retained earnings as of the date adopted.

Changes to Disclosure Requirements for Defined Benefit Plans

In August 2018, the FASB issued guidance that modifies disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans to remove disclosures no longer considered cost beneficial, add disclosures identified as relevant and clarify certain disclosure requirements. The guidance is effective for annual periods beginning after December 15, 2020 using a retrospective transition method. Early adoption is permitted. The Company is in the process of determining the timing of adoption and assessing the overall impact of adopting this guidance on its disclosures.

Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement

In August 2018, the FASB issued guidance on a customer's accounting for implementation fees paid in a cloud computing service contract arrangement that addresses which implementation costs to capitalize as an asset and which costs to expense. Capitalized implementation fees are to be expensed over the term of the cloud computing arrangement, and the expense is required to be recognized in the same line item in the income statement as the associated hosting service expenses. The entity is also required to present the capitalized implementation fees on the balance sheet in the same line item as the prepayment for hosting service fees associated with the cloud computing arrangement.

The guidance is effective for annual periods beginning after December 15, 2019, and interim periods within those annual periods using a retrospective or prospective transition method. Early adoption is permitted, including adoption in any interim period. The Company is in the process of determining the method and timing of adoption and assessing the overall impact of adopting this guidance on its financial position, results of operations and cash flows.

Acquisitions and Divestitures	9 Months Ended
Acquisitions and Divestitures	Sep. 30, 2018
Business Combinations and Divestitures [Abstract]
Acquisitions and Divestitures	Acquisitions and Divestitures Divestitures Equity Investment The Company had an investment that was accounted for under the equity method. In March 2017, the Company determined it had an other than temporary loss in value of its investment and recorded an impairment charge of $30 million, which is included in other (income) expense, net in the accompanying unaudited condensed consolidated statement of operations for the nine months ended September 30, 2017. In September 2017, the investee was dissolved and the Company no longer has an ownership interest in the entity. Brazil Operations In August 2017, the Company completed the sale of Car Rental Systems do Brasil Locação de Veiculos Ltd., a wholly owned subsidiary of the Company located in Brazil ("Brazil Operations"), to Localiza Fleet S.A., a corporation headquartered in Brazil, and received proceeds of $115 million, of which $13 million was placed in escrow to secure certain indemnification obligations. Prior to the sale, the Brazil Operations were reported in the Company's International Rental Car Segment. As a result of the sale, the Company recorded a $6 million gain, net of the impact of foreign currency adjustments, which is included in other (income) expense, net in the accompanying unaudited condensed consolidated statements of operations for the three and nine months ended September 30, 2017. As part of the sale, both companies entered into referral and brand cooperation agreements to govern their ongoing relationship which have an initial term of twenty years with an option to extend for another twenty years. The alliance also involves the exchange of knowledge in areas of technology, customer service and operational excellence.

Revenue Earning Vehicles

9 Months Ended

Sep. 30, 2018

Revenue Earning Vehicles [Abstract]

Revenue Earning Vehicles

The components of revenue earning vehicles, net are as follows:



(In millions)	September 30, 2018			December 31, 2017
Revenue earning vehicles	$	16,376		$	14,209
Less accumulated depreciation	(3,231		)	(3,123		)
	13,145			11,086
Revenue earning vehicles held for sale, net	432			250
Revenue earning vehicles, net	$	13,577		$	11,336

Depreciation of revenue earning vehicles and lease charges, net includes the following:



	Three Months Ended September 30,				Nine Months Ended September 30,
(In millions)	2018		2017		2018		2017
Depreciation of revenue earning vehicles	$	619	$	636	$	1,847	$	1,902
(Gain) loss on disposal of revenue earning vehicles, net^(a)	27		43		105		187
Lease charges	26		21		68		55
Depreciation of revenue earning vehicles and lease charges, net	$	672	$	700	$	2,020	$	2,144

(a) (Gain) loss on disposal of revenue earning vehicles, net by segment is as follows:



	Three Months Ended September 30,					Nine Months Ended September 30,
(In millions)	2018			2017		2018			2017
U.S. Rental Car⁽ⁱ⁾	$	29		$	43	$	107		$	187
International Rental Car	(2		)	—		(2		)	—
Total	$	27		$	43	$	105		$	187


(i)	Includes costs associated with the Company's U.S. vehicle sales operations of $39 million and $36 million for the three months ended September 30, 2018 and 2017, respectively, and $109 million and $99 million for the nine months ended September 30, 2018 and 2017, respectively.

Depreciation rates are reviewed on a quarterly basis based on management's ongoing assessment of present and estimated future market conditions, their effect on residual values at the time of disposal and the estimated holding periods for the vehicles. The impact of depreciation rate changes is as follows:



Increase (decrease)	Three Months Ended September 30,					Nine Months Ended September 30,
(In millions)	2018			2017		2018			2017
U.S. Rental Car^(a)	$	(32	)	$	6	$	(20	)	$	68
International Rental Car	(1		)	4		2			5
Total	$	(33	)	$	10	$	(18	)	$	73

(a)

The depreciation rate changes in the U.S. Rental Car operations for the three and nine months ended September 30, 2018 include a net decrease in depreciation expense of $30 million based on the review completed during the third quarter of 2018. The depreciation rate changes in the U.S. Rental Car operations for the three and nine months ended September 30, 2017 include a net decrease in depreciation expense of $15 million based on the review completed during the third quarter of 2017.

Intangible Asset Impairment	9 Months Ended
Intangible Asset Impairment	Sep. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Asset Impairment	Intangible Asset Impairment As a result of declines in revenue and profitability of the Company and a decline in the share price of Hertz Global's common stock, the Company performed an impairment analysis of its indefinite-lived intangible assets as of June 30, 2017 using the relief from royalty method, a measurement using level 3 inputs under the U.S. GAAP fair value hierarchy. As a result of the analysis, the Company concluded that there was an impairment of the Dollar Thrifty tradename in its U.S. Rental Car segment and recorded a charge of $86 million. The impairment was largely due to a decrease in long-term revenue projections coupled with an increase in the weighted average cost of capital. The carrying value of the Dollar Thrifty tradename subsequent to recording the impairment charge is approximately $934 million, representing its estimated fair value.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details

Debt

9 Months Ended

Sep. 30, 2018

Debt Disclosure [Abstract]

Revenue from Contract with Customer [Abstract]

The Company's debt, including its available credit facilities, consists of the following ($ in millions):



Facility	Weighted Average Interest Rate as of September 30, 2018	Fixed or Floating Interest Rate	Maturity	September 30, 2018			December 31, 2017
Non-Vehicle Debt
Senior Term Loan	5.00%	Floating	6/2023	$	677		$	688
Senior RCF	N/A	Floating	6/2021	—			—
Senior Notes⁽¹⁾	6.13%	Fixed	10/2020-10/2024	2,500			2,500
Senior Second Priority Secured Notes	7.63%	Fixed	6/2022	1,250			1,250
Promissory Notes	7.00%	Fixed	1/2028	27			27
Other Non-Vehicle Debt	3.08%	Fixed	Various	2			11
Unamortized Debt Issuance Costs and Net (Discount) Premium				(35		)	(42		)
Total Non-Vehicle Debt				4,421			4,434
Vehicle Debt
HVF U.S. Vehicle Medium Term Notes
HVF Series 2010-1	N/A	N/A	N/A	—			39
HVF Series 2013-1⁽²⁾	N/A	N/A	N/A	—			625
				—			664
HVF II U.S. ABS Program
HVF II U.S. Vehicle Variable Funding Notes
HVF II Series 2013-A⁽²⁾	3.68%	Floating	3/2020	3,170			1,970
HVF II Series 2013-B⁽²⁾	3.66%	Floating	3/2020	15			123
				3,185			2,093



Facility	Weighted Average Interest Rate as of September 30, 2018	Fixed or Floating Interest Rate	Maturity	September 30, 2018			December 31, 2017
HVF II U.S. Vehicle Medium Term Notes
HVF II Series 2015-1⁽²⁾	2.93%	Fixed	3/2020	780			780
HVF II Series 2015-2⁽²⁾	N/A	N/A	N/A	—			265
HVF II Series 2015-3⁽²⁾	3.10%	Fixed	9/2020	371			371
HVF II Series 2016-1⁽²⁾	2.89%	Fixed	3/2019	466			466
HVF II Series 2016-2⁽²⁾	3.41%	Fixed	3/2021	595			595
HVF II Series 2016-3⁽²⁾	2.72%	Fixed	7/2019	424			424
HVF II Series 2016-4⁽²⁾	3.09%	Fixed	7/2021	424			424
HVF II Series 2017-1⁽²⁾	3.38%	Fixed	10/2020	450			450
HVF II Series 2017-2⁽²⁾	3.57%	Fixed	10/2022	350			350
HVF II Series 2018-1⁽²⁾	3.41%	Fixed	2/2023	1,000			—
HVF II Series 2018-2⁽²⁾	3.80%	Fixed	6/2021	200			—
HVF II Series 2018-3⁽²⁾	4.15%	Fixed	7/2023	200			—
				5,260			4,125
Donlen ABS Program
HFLF Variable Funding Notes
HFLF Series 2013-2⁽²⁾	2.72%	Floating	3/2020	170			380
				170			380
HFLF Medium Term Notes
HFLF Series 2015-1⁽³⁾	3.22%	Floating	10/2018-3/2019	58			145
HFLF Series 2016-1⁽³⁾	3.28%	Both	10/2018-2/2020	204			318
HFLF Series 2017-1⁽³⁾	2.66%	Both	10/2018-2/2021	437			500
HFLF Series 2018-1⁽³⁾	2.58%	Both	7/2019-6/2021	550			—
				1,249			963
Vehicle Debt - Other
U.S. Vehicle RCF	4.52%	Floating	6/2021	133			186
European Revolving Credit Facility	2.95%	Floating	10/2018-3/2020	514			184
European Vehicle Notes⁽⁴⁾	5.07%	Fixed	10/2021-3/2023	851			773
European Securitization⁽²⁾	1.70%	Floating	10/2018-3/2020	515			367
Canadian Securitization⁽²⁾	3.27%	Floating	10/2018-3/2020	315			237
Australian Securitization⁽²⁾	3.56%	Floating	3/2020	142			155
New Zealand RCF	4.61%	Floating	3/2020	40			42
U.K. Financing Facility	3.08%	Floating	10/2018-8/2021	363			251
Other Vehicle Debt	4.01%	Floating	10/2018-10/2022	47			51
				2,920			2,246
Unamortized Debt Issuance Costs and Net (Discount) Premium				(47		)	(40		)
Total Vehicle Debt				12,737			10,431
Total Debt				$	17,158		$	14,865

N/A - Not applicable


(1)	References to the "Senior Notes" include the series of Hertz's unsecured senior notes set forth on the table below. Outstanding principal amounts for each such series of the Senior Notes is also specified below:



(In millions)	Outstanding Principal
Senior Notes	September 30, 2018		December 31, 2017
5.875% Senior Notes due October 2020	$	700	$	700
7.375% Senior Notes due January 2021	500		500
6.250% Senior Notes due October 2022	500		500
5.500% Senior Notes due October 2024	800		800
	$	2,500	$	2,500

(2)

Maturity reference is to the earlier "expected final maturity date" as opposed to the subsequent "legal final maturity date." The expected final maturity date is the date by which Hertz and investors in the relevant indebtedness expect the outstanding principal of the relevant indebtedness to be repaid in full. The legal final maturity date is the date on which the outstanding principal of the relevant indebtedness is legally due and payable in full.

(3)

In the case of the Hertz Fleet Lease Funding LP ("HFLF") Medium Term Notes, such notes are repayable from cash flows derived from third-party leases comprising the underlying HFLF collateral pool. The initial maturity date referenced for each series of HFLF Medium Term Notes represents the end of the revolving period for such series, at which time the related notes begin to amortize monthly by an amount equal to the lease collections payable to that series. To the extent the revolving period already has ended, the initial maturity date reflected is October 2018. The second maturity date referenced for each series of HFLF Medium Term Notes represents the date by which Hertz and the investors in the related series expect such series of notes to be repaid in full, which is based upon various assumptions made at the time of pricing of such notes, including the contractual amortization of the underlying leases as well as the assumed rate of prepayments of such leases. Such maturity reference is to the “expected final maturity date” as opposed to the subsequent “legal final maturity date.” The legal final maturity date is the date on which the relevant indebtedness is legally due and payable. Although the underlying lease cash flows that support the repayment of the HFLF Medium Term Notes may vary, the cash flows generally are expected to approximate a straight-line amortization of the related notes from the initial maturity date through the expected final maturity date.

(4)

References to the "European Vehicle Notes" include the series of Hertz Holdings Netherlands B.V.'s, an indirect wholly owned subsidiary of Hertz organized under the laws of The Netherlands (“HHN BV”), unsecured senior notes (converted from Euros to U.S. dollars at a rate of 1.17 to 1 and 1.19 to 1 as of September 30, 2018 and December 31, 2017, respectively) set forth on the table below. Outstanding principal amounts for each such series of the European Vehicle Notes is also specified below:



(In millions)	Outstanding Principal
European Vehicle Notes	September 30, 2018		December 31, 2017
4.375% Senior Notes due January 2019	$	—	$	505
4.125% Senior Notes due October 2021	264		268
5.500% Senior Notes due March 2023	587		—
	$	851	$	773

The Company is highly leveraged and a substantial portion of its liquidity needs arise from debt service on its indebtedness and from the funding of its costs of operations and capital expenditures. The Company’s practice is to maintain sufficient liquidity through cash from operations, credit facilities and other financing arrangements, to mitigate any adverse impact on its operations resulting from adverse financial market conditions. As of September 30, 2018, approximately $2.3 billion of vehicle debt and $16 million of non-vehicle debt is due to mature between October 1, 2018 and September 30, 2019.

The Company has reviewed its debt facilities and determined that it is probable that the Company will be able, and has the intent, to refinance these facilities at such times as the Company determines appropriate prior to their respective maturities.

Non-Vehicle Debt

Senior Facilities

In June 2018, the Company terminated letters of credit issued under the Senior RCF with a stated amount of approximately $302 million and reissued such letters of credit under the Letter of Credit Facility, as defined below. As a result, the commitments under the Senior RCF were permanently reduced on a dollar-for-dollar basis, such that after giving effect to such reduction the Senior RCF consists of a $865 million senior secured revolving credit facility.

Vehicle Debt

HVF II U.S. Vehicle Variable Funding Notes

HVF II Series 2013 Notes: In April 2018, HVF II increased the maximum commitments under the HVF II Series 2013-A Notes and HVF II Series 2013-B Notes (the "HVF II Series 2013 Notes") by $250 million, such that after giving effect to such increase, the aggregate maximum principal amount of the HVF II Series 2013 Notes is approximately $3.7 billion.

HVF II Series 2017-A Notes: In March 2018, HVF II terminated all $500 million of commitments under the HVF II Series 2017-A Notes.

HVF II U.S. Vehicle Medium Term Notes

HVF II Series 2018-2 Notes and HVF II Series 2018-3 Notes: In June 2018, HVF II issued the Series 2018-2 Rental Car Asset Backed Notes, Class A, Class B, Class C and Class D ("the HVF II Series 2018-2 Notes") and the Series 2018-3 Rental Car Asset Backed Notes, Class A, Class B, Class C and Class D ("the HVF II Series 2018-3 Notes") in an aggregate principal amount of approximately $426 million. Hertz purchased the Class D Notes of each such series and as a result, approximately $26 million of the aggregate principal amount is eliminated in consolidation. There is subordination within the HVF II Series 2018-2 Notes and the HVF II Series 2018-3 Notes based on class.

HVF II Series 2018-1 Notes: In January 2018, HVF II issued the Series 2018-1 Rental Car Asset Backed Notes, Class A, Class B, Class C and Class D ("the HVF II Series 2018-1 Notes") in an aggregate principal amount of approximately $1.1 billion. Hertz purchased the Class D Notes of such series and as a result, approximately $58 million of the aggregate principal amount is eliminated in consolidation. There is subordination within the HVF II Series 2018-1 Notes based on class.

HFLF Medium Term Notes

HFLF Series 2018-1 Notes: In May 2018, HFLF issued the Series 2018-1 Asset-Backed Notes, Class A, Class B, Class C, Class D, and Class E (collectively, the “HFLF Series 2018-1 Notes”) in an aggregate principal amount of $550 million. The HFLF Series 2018-1 Notes are fixed rate, except for the Class A-1 Notes which are floating rate and carry an interest rate based upon a spread to one-month LIBOR. A portion of the net proceeds of this issuance were used to reduce amounts outstanding under the HFLF Series 2013-2 Notes.

Vehicle Debt - Other

European Vehicle Notes

In March 2018, HHN BV issued 5.50% Senior Notes due March 2023 in an aggregate original principal amount of €500 million (the "2023 Notes"). A portion of the net proceeds from this issuance were used in April 2018 to fully redeem all €425 million of 4.375% Senior Notes due January 2019, and the Company recorded $20 million of charges for the early redemption premium and write-off of deferred financing costs.

European Revolving Credit Facility

In March 2018, HHN BV amended its credit agreement ("European Revolving Credit Facility") to provide for aggregate maximum borrowing capacity (subject to borrowing base availability) of up to €438 million during the peak rental season, for a seasonal commitment period through October 2018. Following the expiration of the seasonal commitment period, aggregate maximum borrowings available under the European Revolving Credit Facility will revert to €235 million (subject to borrowing base availability). In October 2018, the European Revolving Credit Facility was terminated, as further described below.

European ABS

In October 2018, International Fleet Financing No.2 B.V (“IFF No. 2”), a special purpose entity which is intended to be bankruptcy remote, issued variable funding rental car asset backed notes that permit borrowings by IFF No. 2 on a revolving basis in an aggregate amount up to €1.0 billion with a term of two years ("European ABS"). The European ABS is the primary vehicle financing facility for the Company's vehicle rental operations in France, the Netherlands, Germany and Spain. The lenders under the European ABS have been granted a security interest in the owned rental vehicles used in the Company's vehicle rental operations in these countries and certain contractual rights related to such vehicles.

In connection with the above transaction, the Company terminated the European Revolving Credit Facility and the European Securitization.

Canadian Securitization

In May 2018, TCL Funding Limited Partnership, a bankruptcy remote, indirect, wholly owned, special purpose subsidiary of Hertz, amended its supplemental indenture for its Series 2015-A Variable Funding Rental Car Asset Backed Notes (the "Funding LP Series 2015-A Notes") to provide for aggregate maximum borrowing capacity (subject to borrowing base availability) of up to CAD$410 million during the peak rental season, for a seasonal commitment period through October 2018. Following the expiration of the seasonal commitment period, aggregate maximum borrowings available under the Funding LP Series 2015-A Notes will revert to CAD$350 million (subject to borrowing base availability).

U.K. Financing Facility

In May 2018, Hertz U.K. Limited amended its credit agreement ("U.K. Financing Facility") to provide for aggregate maximum borrowing capacity (subject to asset availability) of up to £287.5 million during the peak rental season, and in July 2018, the U.K. Financing Facility was further amended to provide for aggregate maximum borrowing capacity (subject to asset availability) of up to £300 million during the peak rental season, for a seasonal commitment period through September 2018. Following the expiration of the seasonal commitment period, aggregate maximum borrowings available under the U.K. Financing Facility reverted to £250 million (subject to asset availability).

Borrowing Capacity and Availability

Borrowing capacity and availability comes from the Company's "revolving credit facilities," which are a combination of variable funding asset-backed securitization facilities, cash-flow-based revolving credit facilities, asset-based revolving credit facilities and a standalone $400 million letter of credit facility (the "Letter of Credit Facility"). Creditors under each such asset-backed securitization facility and asset-based revolving credit facility have a claim on a specific pool of assets as collateral. The Company's ability to borrow under each such asset-backed securitization facility and asset-based revolving credit facility is a function of, among other things, the value of the assets in the relevant collateral pool. With respect to each such asset-backed securitization facility and asset-based revolving credit facility, the Company refers to the amount of debt it can borrow given a certain pool of assets as the borrowing base.

The Company refers to "Remaining Capacity" as the maximum principal amount of debt permitted to be outstanding under the respective facility (i.e., with respect to a variable funding asset-backed securitization facility or asset-based revolving credit facility, the amount of debt the Company could borrow assuming it possessed sufficient assets as collateral) less the principal amount of debt then-outstanding under such facility. With respect to a variable funding asset-backed securitization facility or asset-based revolving credit facility, the Company refers to "Availability Under Borrowing Base Limitation" as the lower of Remaining Capacity or the borrowing base less the principal amount of debt then-outstanding under such facility (i.e., the amount of debt that can be borrowed given the collateral possessed at such time). With respect to the Senior RCF and the Letter of Credit Facility, "Availability Under Borrowing Base Limitation" is the same as "Remaining Capacity" since borrowings under the Senior RCF and the Letter of Credit Facility are not subject to a borrowing base.

The following facilities were available to the Company as of September 30, 2018, and are presented net of any outstanding letters of credit:



(In millions)	Remaining Capacity		Availability Under Borrowing Base Limitation
Non-Vehicle Debt
Senior RCF	$	505	$	505
Letter of Credit Facility	1		1
Total Non-Vehicle Debt	506		506
Vehicle Debt
U.S. Vehicle RCF	—		—
HVF II U.S. Vehicle Variable Funding Notes	480		—
HFLF Variable Funding Notes	330		1
European Revolving Credit Facility	—		—
European Securitization	25		5
Canadian Securitization	—		—
Australian Securitization	40		—
U.K. Financing Facility	32		—
New Zealand RCF	—		—
Total Vehicle Debt	907		6
Total	$	1,413	$	512

Letters of Credit

As of September 30, 2018, there were outstanding standby letters of credit totaling $672 million. As disclosed above, the Company terminated letters of credit issued under the Senior RCF and reissued such letters of credit under the Letter of Credit Facility. Issued letters of credit primarily support the Company's insurance programs, vehicle rental concessions and leaseholds as well as to provide credit enhancement for its asset-backed securitization facilities. Of this amount, $360 million was issued under the Senior RCF and $301 million was issued under the Letter of Credit Facility. As of September 30, 2018, none of the issued letters of credit have been drawn upon.

Special Purpose Entities

Substantially all of the Company's revenue earning vehicles and certain related assets are owned by special purpose entities, or are encumbered in favor of the lenders under the various credit facilities, other secured financings and asset-backed securities programs. None of such assets (including the assets owned by Hertz Vehicle Financing II LP, Hertz Vehicle Financing LLC, Rental Car Finance LLC, DNRS II LLC, HFLF, Donlen Trust and various international subsidiaries that facilitate the Company's international securitizations) are available to satisfy the claims of general creditors.

The Company has a 25% ownership interest in "IFF No. 2", whose sole purpose is to provide commitments to lend in various currencies subject to borrowing bases comprised of revenue earning vehicles and related assets of certain of Hertz International, Ltd.'s subsidiaries. IFF No. 2 is a variable interest entity and the Company is the primary beneficiary, therefore, the assets, liabilities, and results of operations of IFF No. 2 are included in the Company's unaudited condensed consolidated financial statements. As of September 30, 2018 and December 31, 2017, IFF No. 2 had total assets of $776 million and $524 million, respectively, primarily comprised of loan receivables, and total liabilities of $776 million and $524 million, respectively, primarily comprised of debt and loan payables.

Covenant Compliance

The financial covenant provides that Hertz’s consolidated first lien net leverage ratio, as defined in the credit agreements governing the Senior RCF and the Letter of Credit Facility, as of the last day of any fiscal quarter following and including fiscal quarter ending December 31, 2017 (the "Covenant Leverage Ratio"), may not exceed a ratio of 3.00 to 1.00. As of September 30, 2018, Hertz was in compliance with the Covenant Leverage Ratio.

Revenue

9 Months Ended

Sep. 30, 2018

Revenue

The Company recognizes two types of revenue: (i) revenue from contracts with customers; and (ii) lease revenue, which is generated through the fleet leasing operations of its Donlen subsidiary.

As disclosed in the Revenue from Contracts with Customers section of Note 2, “Basis of Presentation and Recently Issued Accounting Pronouncements” ("Note 2"), the Company adopted Topic 606 in accordance with the effective date on January 1, 2018. Note 2 includes disclosures regarding the Company’s method of adoption and the impact on the Company’s financial position, results of operations and cash flows. In the Leases section of Note 2, the Company discloses that it has concluded that revenue earned from vehicle rentals, and from other forms of rental related activities wherein an identified asset is transferred to the customer and the customer has the ability to control that asset, will be accounted for under Topic 842 upon its adoption. Until the Company adopts Topic 842, vehicle rental and rental related revenues are recognized in accordance with Topic 606.

The Company recognizes revenue net of any taxes or non-concession fees collected from customers on behalf of governmental authorities.

Revenue from Contracts with Customers

The Company operates at airport rental locations in the U.S. and internationally ("airport") and at off airport locations also in the U.S. and internationally ("off airport"). For the Company's airport company-operated rental locations, the Company has obtained concessions or similar leasing agreements or arrangements, granting it the right to conduct a vehicle rental business at the respective airport. The terms of an airport concession typically require the Company to pay the airport's operator concession fees based upon a specified percentage of the revenues it generates at the airport, subject to a minimum annual guarantee. The terms of the Company's concessions typically do not forbid it from seeking, and in a few instances require it to seek, reimbursement from customers for concession fees it pays; however, in certain jurisdictions the law limits or forbids the Company from doing so. Where the Company is required or permitted to seek such reimbursement, it is its general practice to do so. The Company's airport rental customers are typically airline travelers; whereas the Company's off airport rental customers include people who prefer to rent vehicles closer to their home or place of work for business or leisure purposes, as well as those needing to travel to or from airports. The Company's off airport customers also include people who have been referred by, or whose rental costs are being wholly or partially reimbursed by, insurance companies following accidents in which their vehicles were damaged, those expecting to lease vehicles that are not yet available from their leasing companies and replacement renters. In addition, the Company's off airport customers include drivers for transportation network companies ("TNC").

The following table presents revenues from contracts with customers by reportable segment and disaggregated by product/service and type of location and customer:



	Three Months Ending September 30, 2018
(In millions)	U.S. Rental Car		International Rental Car		All Other Operations		Consolidated
Vehicle rental and rental related:
Airport	$	1,279	$	446	$	—	$	1,725
Off airport	535		242		—		777
Total vehicle rental and rental related	1,814		688		—		2,502

Other:
Licensee revenue	10		44		—		54
Ancillary retail vehicle sales	27		—		—		27
Fleet management	—		—		10		10
Total other	37		44		10		91
Total revenue from contracts with customers	$	1,851	$	732	$	10	$	2,593



	Nine Months Ending September 30, 2018
(In millions)	U.S. Rental Car		International Rental Car		All Other Operations		Consolidated
Vehicle rental and rental related:
Airport	$	3,403	$	1,029	$	—	$	4,432
Off airport	1,400		646		—		2,046
Total vehicle rental and rental related	4,803		1,675		—		6,478

Other:
Licensee revenue	24		114		—		138
Ancillary retail vehicle sales	78		—		—		78
Fleet management	—		—		32		32
Total other	102		114		32		248
Total revenue from contracts with customers	$	4,905	$	1,789	$	32	$	6,726

Vehicle Rental and Rental Related Revenues

The Company recognizes revenue from its vehicle rental operations when persuasive evidence of a contract exists, the performance obligations have been satisfied, the transaction price is fixed or determinable and collection is reasonably assured. Performance obligations associated with vehicle rental transactions are satisfied over the rental period, except for the portion associated with loyalty points, as further described below. Rental periods are short term in nature. Therefore, the Company has elected to apply the practical expedient which eliminates the requirement to disclose information about remaining performance obligations. Performance obligations associated with rental related activities, such as charges to the customer for the fueling of vehicles and value-added services such as loss damage waivers, insurance products, navigation units, supplemental equipment and other consumables, are also satisfied over the rental period. Revenue from charges that are passed through to the customer, such as gasoline, vehicle licensing and airport concession fees, is recorded on a gross basis with a corresponding charge to direct vehicle and operating expense. Sales commissions paid to third parties are generally expensed when incurred due to the short-term nature of the related transaction on which the commission was earned and are recorded within selling, general and administrative expense. Payments are due from customers at the completion of the rental, except for customers with negotiated payment terms, generally net 30 days or less, which are invoiced and remain as accounts receivable until collected.

Loyalty Programs - The Company offers loyalty programs, primarily Hertz Gold Plus Rewards, wherein customers are eligible to earn loyalty points that are redeemable for free rental days or can be converted to loyalty points for redemption of products and services under loyalty programs of other companies. Each transaction that generates loyalty points results in the deferral of revenue equivalent to the retail value of the redemption of the loyalty points. The associated revenue is recognized when the customer redeems the loyalty points at some point in the future. The retail value of loyalty points is estimated based on the expected retail value of the future vehicle rental to be provided less an estimated amount representing loyalty points that are not expected to be redeemed (“breakage”). Breakage is estimated on a quarterly basis and includes significant assumptions such as historical breakage trends and internal Company forecasts. During the three and nine months ended September 30, 2018, based on the net impact of loyalty points earned and redeemed by customers, the Company recorded a net revenue deferral of $9 million and $5 million, respectively. As of September 30, 2018, the value of unredeemed loyalty points is $271 million, which is recorded as a contract liability in accrued liabilities in the accompanying unaudited condensed consolidated balance sheet.

Customer Rebates - The Company has business customers that rent vehicles based on terms that have been negotiated through contracts with their employers, or other entities with which they are associated (“commercial contracts”), which can differ substantially from the terms on which the Company rents vehicles to the general public. Some of the commercial contracts contain provisions which allow for rebates to the entity based on achieving a specific rental volume threshold. Rebates are treated as variable consideration and are recognized as a reduction of revenue at the time of the rental based on the rebate expected to be earned by the entity.

Licensee Revenue

The Company has franchise agreements which allow an independent entity to rent their vehicles under the Company’s brands, primarily Hertz, Dollar or Thrifty, for a fee (“franchise fee”). Franchise fees are earned over time for the duration of the franchise agreement and are typically based on the larger of a minimum payment or an amount representing a percentage of net sales of the franchised business. Franchise fees are recognized as earned and when collectability is reasonably assured. Franchise fees that relate to a future contract term, such as initial fees or renewal fees, are deferred and recognized over the term of the franchise agreement. The Company has elected to apply one of the practical expedients under Topic 606, and as such the value of unsatisfied performance obligations for sales-based royalty fees from franchisees is not disclosed.

Ancillary Retail Vehicle Sales Revenue

Ancillary retail vehicle sales represent revenues generated from the sale of warranty contracts, financing and title fees, and other ancillary services associated with vehicles disposed of at the Company’s retail outlets. These revenues are recorded at the point in time when the Company sells the product or provides the service to the customer. These revenues exclude the sale price of the vehicle which is a component of the gain or loss on the disposition and is included in depreciation of revenue earning vehicles and lease charges, net.

Fleet Management Revenue

The Company's Donlen subsidiary generates revenue from various fleet management services, such as fuel purchasing and management, preventive maintenance, repair consultation, toll management and accident management. Fleet management revenue is recognized net of any fees collected from customers on behalf of third-party service providers, as services are rendered.

Contract Balances

The Company recognizes receivables and liabilities resulting from its contracts with customers. Contract receivables primarily consist of receivables from customers for vehicle rentals. Contract liabilities primarily consist of obligations to customers for prepaid vehicle rentals and related to the Company’s points-based loyalty programs.

The contract liability balance as of September 30, 2018 is $351 million and is included in accrued liabilities in the accompanying unaudited condensed consolidated balance sheet. The contract liability as of January 1, 2018, after giving effect to the adoption of Topic 606, was $345 million and revenue recognized during the nine months ended September 30, 2018 for such contract liabilities is $129 million. The contract liability as of June 30, 2018 was $412 million and revenue recognized during the three months ended September 30, 2018 for such contract liabilities is $164 million.

Income Tax (Provision) Benefit	9 Months Ended
Income Tax (Provision) Benefit	Sep. 30, 2018
Income Tax Disclosure [Abstract]
Income Tax (Provision) Benefit	Income Tax (Provision) Benefit The Company recognized the income tax effects of the tax reform legislation commonly referred to as the Tax Cuts and Jobs Act ("TCJA") in its audited consolidated financial statements included in the Company’s 2017 Form 10‑K in accordance with Staff Accounting Bulletin No. 118, which provides SEC staff guidance for the application of Topic 740, Income Taxes, in the reporting period in which the TCJA was signed into law. The guidance also provides for a measurement period of up to one year from the enactment date for the Company to complete the accounting for the U.S. tax law changes. As such, the Company’s 2017 financial position reflects the provisional estimate of the income tax effects of the TCJA, which was based on certain assumptions and the Company's interpretation of the law at that time. During the third quarter of 2018, the Company further analyzed tax liabilities associated with the deemed repatriation of cumulative earnings from foreign subsidiaries. As a result of the analysis, the Company has recorded a non-cash tax expense of approximately $15 million, consisting of a $25 million one-time transition tax liability, offset by $10 million of remeasured net operating losses. The amounts recorded are estimates and are subject to change as the Company continues to analyze the impact of TCJA provisions. The income tax provision for the three and nine months ended September 30, 2018 also incorporates the TCJA's changes to deductions for executive compensation and meals and entertainment. Other provisions include global intangible low-tax income ("GILTI"), base erosion anti-avoidance tax ("BEAT"), foreign-derived intangible income ("FDII") and an interest expense deduction limitation. As of September 30, 2018, the Company estimates no short-to-medium term tax liability resulting from GILTI, BEAT, FDII, or the interest limitation. These estimates are based on the Company's current interpretation of the TCJA. These assumptions and interpretations may change as as the interpretation of the TCJA evolves and as additional clarification and implementation guidance are issued. Changes in the estimates described above could potentially affect the measurement of deferred tax assets and liabilities or potentially give rise to new deferred tax amounts. Hertz Global The effective tax rate for the three months ended September 30, 2018 and 2017 is (23)% and (35)%, respectively. The effective tax rate for the nine months ended September 30, 2018 and 2017 is 9% and 27%, respectively. The Company recorded a tax provision of $41 million for the three months ended September 30, 2018, compared to $50 million for the three months ended September 30, 2017. The effective income tax rate and related tax expense are lower for the three months ended September 30, 2018 primarily due to the reduced corporate tax rate as a result of the TCJA, tax credits, and the composition of earnings by jurisdictions, partially offset by a net provisional amount of $15 million for the one-time transition tax related to TCJA. The Company recorded a tax benefit of $12 million for the nine months ended September 30, 2018, compared to $108 million for the nine months ended September 30, 2017. The effective income tax rate and related tax benefit are lower for the nine months ended September 30, 2018 primarily due to the reduced corporate tax rate as a result of the TCJA, reduced corporate losses, and the composition of earnings by jurisdictions, partially offset by a net provisional amount of $15 million for the one-time transition tax related to TCJA. Hertz The effective tax rate for the three months ended September 30, 2018 and 2017 is (23)% and (35)%, respectively. The effective tax rate for the nine months ended September 30, 2018 and 2017 is 8% and 27%, respectively. The Company recorded a tax provision of $42 million for the three months ended September 30, 2018, compared to $50 million for the three months ended September 30, 2017. The effective income tax rate and related tax expense are lower for the three months ended September 30, 2018 primarily due to the reduced corporate tax rate as a result of the TCJA, tax credits, and the composition of earnings by jurisdictions, partially offset by a net provisional amount of $15 million for the one-time transition tax related to TCJA. The Company recorded a tax benefit of $10 million for the nine months ended September 30, 2018, compared to $107 million for the nine months ended September 30, 2017. The effective income tax rate and related tax benefit are lower for the nine months ended September 30, 2018 primarily due to the reduced corporate tax rate as a result of the TCJA, reduced corporate losses, and the composition of earnings by jurisdictions, partially offset by a net provisional amount of $15 million for the one-time transition tax related to TCJA.

Earnings (Loss) Per Share - Hertz Global

9 Months Ended

Sep. 30, 2018

Earnings Per Share [Abstract]

Earnings (Loss) Per Share - Hertz Global

Basic earnings (loss) per share has been computed based upon the weighted average number of common shares outstanding. Diluted earnings (loss) per share has been computed based upon the weighted average number of common shares outstanding plus the effect of all potentially dilutive common stock equivalents, except when the effect would be anti-dilutive.

The following table sets forth the computation of basic and diluted earnings (loss) per share:



	Three Months Ended September 30,				Nine Months Ended September 30,
(In millions, except per share data)	2018		2017		2018			2017
Basic and diluted earnings (loss) per share:
Numerator:
Net income (loss) attributable to Hertz Global	$	141	$	93	$	(124	)	$	(289	)
Denominator:
Basic weighted average shares outstanding	84		83		83			83
Dilutive stock options, RSUs, PSUs and PSAs	—		—		—			—
Diluted weighted average shares outstanding	84		83		83			83
Antidilutive stock options, RSUs, PSUs and PSAs	1		3		1			3
Earnings (loss) per share:
Basic earnings (loss) per share	$	1.68	$	1.12	$	(1.49	)	$	(3.48	)
Diluted earnings (loss) per share	$	1.68	$	1.12	$	(1.49	)	$	(3.48	)

Fair Value Measurements

9 Months Ended

Sep. 30, 2018

Fair Value Disclosures [Abstract]

Fair Value Measurements

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The fair value of cash, restricted cash, accounts receivable, accounts payable and accrued expenses, to the extent the underlying liability will be settled in cash, approximates the carrying values because of the short-term nature of these instruments.

Cash Equivalents, Restricted Cash Equivalents and Investments

The Company’s cash equivalents and restricted cash equivalents primarily consist of investments in money market funds and time deposits. The Company determines the fair value of cash equivalents using a market approach based on quoted prices in active markets (Level 1 inputs).

Investments in equity securities that are measured at fair value on a recurring basis consist of marketable securities.

The following table summarizes the ending balances of the Company's cash equivalents, restricted cash equivalents and investments:



	September 30, 2018								December 31, 2017
(In millions)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Money market funds and time deposits	$	356	$	—	$	—	$	356	$	634	$	—	$	—	$	634
Equity securities	45		—		—		45		—		—		—		—

Debt Obligations

The fair value of debt is estimated based on quoted market rates as well as borrowing rates currently available to the Company for loans with similar terms and average maturities (Level 2 inputs).



	As of September 30, 2018				As of December 31, 2017
(In millions)	Nominal Unpaid Principal Balance		Aggregate Fair Value		Nominal Unpaid Principal Balance		Aggregate Fair Value
Non-vehicle Debt	$	4,456	$	4,254	$	4,476	$	4,438
Vehicle Debt	12,784		12,715		10,471		10,456
Total	$	17,240	$	16,969	$	14,947	$	14,894

Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis

In March 2017, as further described in Note 3, "Acquisitions and Divestitures," the Company determined it had an other than temporary loss in value of its equity method investment. In June 2017, as further described in Note 5, "Intangible Asset Impairment," the Company recorded impairment charges for the Dollar Thrifty tradename.

The Company measured the assets and liabilities of its Brazil Operations at fair value as of March 31, 2017 and June 30, 2017, while held for sale, and recorded a pre-tax gain of $4 million and a loss of $4 million, respectively. The Brazil Operations were sold in August 2017 and the Company recorded a pre-tax gain of $6 million as further described in Note 3, "Acquisitions and Divestitures."

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Contingencies and Off-Balance Sheet Commitments	9 Months Ended
Contingencies and Off-Balance Sheet Commitments	Sep. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Contingencies and Off-Balance Sheet Commitments	Contingencies and Off-Balance Sheet Commitments Legal Proceedings Public Liability and Property Damage The Company is currently a defendant in numerous actions and has received numerous claims on which actions have not yet been commenced for public liability and property damage arising from the operation of motor vehicles rented from the Company. The obligation for public liability and property damage on self-insured U.S. and international vehicles, as stated on the accompanying unaudited condensed consolidated balance sheets, represents an estimate for both reported accident claims not yet paid and claims incurred but not yet reported. The related liabilities are recorded on a non-discounted basis. Reserve requirements are based on rental volume and actuarial evaluations of historical accident claim experience and trends, as well as future projections of ultimate losses, expenses, premiums and administrative costs. As of September 30, 2018 and December 31, 2017, the Company's liability recorded for public liability and property damage matters is $439 million and $427 million, respectively. The Company believes that its analysis is based on the most relevant information available, combined with reasonable assumptions, and that the Company may prudently rely on this information to determine the estimated liability. The liability is subject to significant uncertainties. The adequacy of the liability reserve is regularly monitored based on evolving accident claim history and insurance related state legislation changes. If the Company's estimates change or if actual results differ from these assumptions, the amount of the recorded liability is adjusted to reflect these results. Other Matters From time to time the Company is a party to various legal proceedings, typically involving operational issues common to the vehicle rental business, including claims by employees and former employees, and governmental investigations. The Company has summarized below the most significant legal proceedings to which the Company was and/or is a party to during the nine months ended September 30, 2018 or the period after September 30, 2018, but before the filing of this Report on Form 10‑Q. In re Hertz Global Holdings, Inc. Securities Litigation - In November 2013, a purported shareholder class action, Pedro Ramirez, Jr. v. Hertz Global Holdings, Inc., et al., was commenced in the U.S. District Court for the District of New Jersey naming Old Hertz Holdings (as defined in the Company's 2017 Form 10‑K) and certain of its officers as defendants and alleging violations of the federal securities laws. The complaint alleged that Old Hertz Holdings made material misrepresentations and/or omissions of material fact in its public disclosures during the period from February 25, 2013 through November 4, 2013, in violation of Section 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended, and Rule 10b-5 promulgated thereunder. The complaint sought an unspecified amount of monetary damages on behalf of the purported class and an award of costs and expenses, including counsel fees and expert fees. In June 2014, Old Hertz Holdings responded to the amended complaint by filing a motion to dismiss. After a hearing in October 2014, the court granted Old Hertz Holdings’ motion to dismiss the complaint. The dismissal was without prejudice and plaintiff was granted leave to file a second amended complaint within 30 days of the order. In November 2014, plaintiff filed a second amended complaint which shortened the putative class period such that it was not alleged to have commenced until May 18, 2013 and made allegations that were not substantively very different than the allegations in the prior complaint. In early 2015, this case was assigned to a new federal judge in the District of New Jersey, and Old Hertz Holdings responded to the second amended complaint by filing another motion to dismiss. On July 22, 2015, the court granted Old Hertz Holdings’ motion to dismiss without prejudice and ordered that plaintiff could file a third amended complaint on or before August 22, 2015. On August 21, 2015, plaintiff filed a third amended complaint. The third amended complaint included additional allegations, named additional current and former officers as defendants and expanded the putative class period such that it was alleged to span from February 14, 2013 to July 16, 2015. Plaintiffs filed a fourth amended complaint to add a new plaintiff on March 1, 2016. Old Hertz Holdings and the individual defendants moved to dismiss the fourth amended complaint in its entirety with prejudice on March 24, 2016, and plaintiff filed its opposition to same. The court granted Old Hertz Holdings' motion to dismiss with prejudice on April 27, 2017. The plaintiffs appealed to the United States Court of Appeals for the Third Circuit and filed their Initial Brief in November 2017. Old Hertz Holdings - joined by two of the individual defendants along with a separate brief by one of the individual defendants - filed Opposition Briefs in January 2018. The plaintiffs’ Reply Brief was thereafter filed in February of 2018. Oral arguments were held on June 12, 2018. On September 20, 2018, the Third Circuit affirmed the dismissal of the fourth amended complaint with prejudice. Governmental Investigations - In June 2014, the Company was advised by the staff of the New York Regional Office of the Securities and Exchange Commission (“SEC”) that it is investigating the events disclosed in certain of the Company’s filings with the SEC. In addition, starting in June 2016 the Company has had communications with the U.S. Attorney’s Office for the District of New Jersey regarding the same or similar events. The investigations and communications generally involve the restatements included in the Old Hertz Holdings Form 10-K for the year ended December 31, 2014, as filed with the SEC on July 16, 2015 and related accounting for prior periods. The Company has and intends to continue to cooperate with all requests related to the foregoing. The Company is engaged in discussions with the enforcement staff of the New York office of the SEC ("Staff") to resolve certain matters under investigation. Any proposed settlement that might result from discussions with the Staff would be subject to additional reviews and approvals, including acceptance and authorization by the SEC. The Company cannot predict the ultimate timing or the final terms of a possible settlement, including any settlement amount. The Company has accrued a loss contingency of $13.6 million which is its best estimate of probable loss based on current circumstances. It is possible that the final settlement could result in losses that exceed the accrual and could be material to the Company's consolidated financial condition, results of operations or cash flows. Additionally, the Company previously identified certain activities in Brazil that raised issues under the Foreign Corrupt Practices Act (the "FCPA") and other federal and local laws, which the Company self-reported to appropriate government entities. The matters associated with the FCPA and other federal matters have been resolved without further action by the applicable U.S. government entities. The Company is continuing its cooperation with respect to matters under local Brazilian laws. The Company has accrued a loss contingency with respect to the ongoing Brazil-related matters that is not material. However, it is possible that an adverse outcome with respect to the ongoing matters in Brazil could result in losses that could be material to the Company's consolidated financial condition, results of operations or cash flows in any particular reporting period. French Road Tax - The French Tax Authority has challenged the historic practice of several vehicle rental companies, including Hertz France, of registering vehicles in jurisdictions where it is established and where the road tax payable with respect to those vehicles is lower than the road tax payable in the jurisdictions where the vehicles will primarily be used. In respect of a period in 2005, the Company has unsuccessfully appealed the French Tax assessment to the highest Administrative court in France. In respect of a period from 2003 to 2005, following an adverse judgment, the Company appealed the French Tax Authority’s assessment to the Civil Court of Appeal. In March 2017, the Company received an adverse judgment in the 2003 -2005 road tax appeal from the Civil Court of Appeal. The Company appealed this decision to the Supreme Civil Court in May 2017. In December 2017, the French Tax Authority issued an assessment for registration tax for the year 2014 and the Company submitted a rebuttal to the French Tax Authority in February 2018. The Company began reserving for this matter in 2015 and assesses the reserve on a quarterly basis as part of the financial statements close process. In addition to the matters described above, the Company maintains an internal compliance program through which it from time to time identifies other potential violations of laws and regulations applicable to the Company. When the Company identifies such matters, the Company conducts an internal investigation and otherwise cooperates with governmental authorities, as appropriate. The Company has established reserves for matters where the Company believes that losses are probable and can be reasonably estimated. Other than the aggregate reserve established for claims for public liability and property damage, none of those reserves are material. For matters, including certain of those described above, where the Company has not established a reserve, the ultimate outcome or resolution cannot be predicted at this time, or the amount of ultimate loss, if any, cannot be reasonably estimated. These matters are subject to many uncertainties and the outcome of the individual litigated matters is not predictable with assurance. It is possible that certain of the actions, claims, inquiries or proceedings, including those discussed above, could be decided unfavorably to the Company or any of its subsidiaries involved. Accordingly, it is possible that an adverse outcome from such a proceeding could exceed the amount accrued in an amount that could be material to the accompanying consolidated financial condition, results of operations or cash flows in any particular reporting period. Indemnification Obligations In the ordinary course of business, the Company has executed contracts involving indemnification obligations customary in the relevant industry and indemnifications specific to a transaction such as the sale of a business. These indemnification obligations might include claims relating to the following: environmental matters; intellectual property rights; governmental regulations and employment-related matters; customer, supplier and other commercial contractual relationships; and financial matters. Specifically, the Company has indemnified various parties for the costs associated with remediating numerous hazardous substance storage, recycling or disposal sites in many states and, in some instances, for natural resource damages. The amount of any such expenses or related natural resource damages for which the Company may be held responsible could be substantial. In addition, Hertz entered into customary indemnification agreements with Hertz Holdings and certain of the Company's stockholders and their affiliates pursuant to which Hertz Holdings and Hertz will indemnify those entities and their respective affiliates, directors, officers, partners, members, employees, agents, representatives and controlling persons, against certain liabilities arising out of performance of a consulting agreement with Hertz Holdings and each of such entities and certain other claims and liabilities, including liabilities arising out of financing arrangements or securities offerings. The Company has entered into customary indemnification agreements with each of its directors and certain of its officers. Performance under these indemnification obligations would generally be triggered by a breach of terms of the contract or by a third-party claim. In connection with the Spin-Off, the Company executed an agreement with Herc Holdings that contains mutual indemnification clauses and a customary indemnification provision with respect to liability arising out of or resulting from assumed legal matters. The Company regularly evaluates the probability of having to incur costs associated with these indemnification obligations and has accrued for expected losses that are probable and estimable.

Related Party Transactions	9 Months Ended
Related Party Transactions	Sep. 30, 2018
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions Agreements with the Icahn Group In the normal course of business, the Company purchases goods and services and leases property from entities controlled by Carl C. Icahn and his affiliates, including The Pep Boys - Manny, Moe & Jack (collectively, the "Icahn Group"). During the three months ended September 30, 2018 and 2017, the Company purchased approximately $10 million and $3 million, respectively, worth of goods and services from these related parties. During the nine months ended September 30, 2018 and 2017, the Company purchased approximately $27 million and $8 million, respectively, worth of goods and services from these related parties. In May 2018, the Company sold approximately $36 million of marketable securities to the Icahn Group at the then current market price of such securities. Transactions between Hertz Holdings and Hertz In June 2017, Hertz entered into a master loan agreement with Hertz Holdings for a facility size of $425 million with an expiration in June 2018 (the "2017 Master Loan"). The interest rate is based on the U.S. Dollar LIBOR rate plus a margin. In June 2018, upon expiration of the 2017 Master Loan, Hertz entered into a new master loan agreement with Hertz Holdings for a facility size of $425 million with an expiration in June 2019 (the "2018 Master Loan") where amounts outstanding under the 2017 Master Loan were transferred to the 2018 Master Loan. The interest rate is based on the U.S. Dollar LIBOR rate plus a margin. As of September 30, 2018 and December 31, 2017, there was $115 million and $107 million, respectively, outstanding under the 2018 Master Loan representing advances and any accrued but unpaid interest. As of September 30, 2018 and December 31, 2017, Hertz has a due to affiliate in the amount of $65 million, which represents its tax-related liability to Hertz Holdings. The above amounts are included in equity in the accompanying unaudited condensed consolidated balance sheets of Hertz. Other Relationships In January 2018, Hertz entered into a Master Motor Vehicle Lease and Management Agreement (the “767 Lease Agreement”) pursuant to which Hertz granted 767 Auto Leasing LLC (“767”), an entity affiliated with the Icahn Group, the option to acquire certain vehicles from Hertz at rates aligned with the rates at which Hertz sells vehicles to third parties. Hertz will lease the vehicles, purchased by 767 under the 767 Lease Agreement or from third parties, under a mutually developed fleet plan and Hertz will manage, service, repair, sell and maintain those leased vehicles on behalf of 767. Hertz will rent the leased vehicles to drivers of TNC, including Lyft, Inc. drivers, from rental counters within locations leased or owned by affiliates of 767, including locations operated under a master lease agreement with The Pep Boys - Manny, Joe & Jack. The 767 Lease Agreement has an initial term of 18 months and is subject to automatic six-month renewals thereafter, unless terminated by either party (with or without cause) prior to the start of any such six-month renewal. 767’s payment obligations under the 767 Lease Agreement are guaranteed by American Entertainment Properties Corp. ("American"), an entity affiliated with Mr. Icahn. American contributed $15 million and $25 million to 767 during the three and nine months ended September 30, 2018, respectively. During the three and nine months ended September 30, 2018, the Company sold approximately 1,000 and 1,600 vehicles, respectively, to 767 for approximately $11 million and $18 million, respectively. The Company is entitled to 25% of the profit from the rental of the leased vehicles, as specified in the 767 Lease Agreement, which is variable and based primarily on the rental revenue, less certain costs, such as depreciation, licensing and maintenance expenses. The Company has determined that it is the primary beneficiary of 767 due to its power to direct the activities of 767 that most significantly impact 767's economic performance and the Company's obligation to absorb 25% of 767's gains/losses. Accordingly, 767 is consolidated by the Company as a VIE.

Segment Information

9 Months Ended

Sep. 30, 2018

Segment Reporting [Abstract]

Segment Information

The Company has identified three reportable segments, which are organized based on the products and services provided by its operating segments and the geographic areas in which its operating segments conduct business, as follows:


•	U.S. Rental Car ("U.S. RAC") - rental of vehicles (cars, crossovers and light trucks), as well as sales of value-added services, in the U.S. and consists of the Company's U.S. operating segment;

•

International Rental Car ("International RAC") - rental and leasing of vehicles (cars, vans, crossovers and light trucks), as well as sales of value-added services, internationally and consists of the Company's Europe and Other International operating segments, which are aggregated into a reportable segment based primarily upon similar economic characteristics, products and services, customers, delivery methods and general regulatory environments;


•	All Other Operations - primarily consists of the Company's Donlen business, which provides vehicle leasing and fleet management services, together with other business activities which represent less than 2% of revenues and expenses of the segment.

In addition to the above reportable segments, the Company has corporate operations ("Corporate") which includes general corporate assets and expenses and certain interest expense (including net interest on non-vehicle debt).

The following tables provide significant statement of operations and balance sheet information by segment for each of Hertz Global and Hertz, as well as adjusted pre-tax income (loss), the segment measure of profitability.



	Three Months Ended September 30,						Nine Months Ended September 30,
(In millions)	2018			2017			2018			2017
Revenues
U.S. Rental Car	$	1,852		$	1,685		$	4,905		$	4,557
International Rental Car	732			728			1,789			1,683
All Other Operations	174			159			515			473
Total Hertz Global and Hertz	$	2,758		$	2,572		$	7,209		$	6,713
Depreciation of revenue earning vehicles and lease charges, net
U.S. Rental Car	$	414		$	455		$	1,295		$	1,478
International Rental Car	128			126			342			311
All Other Operations	130			119			383			355
Total Hertz Global and Hertz	$	672		$	700		$	2,020		$	2,144
Adjusted Pre-tax Income (Loss)^(a)
U.S. Rental Car	$	222		$	158		$	200		$	5
International Rental Car	133			147			201			200
All Other Operations	22			20			68			59
Corporate	(137		)	(137		)	(425		)	(371		)
Total Hertz Global	240			188			44			(107		)
Corporate - Hertz	2			1			5			4
Total Hertz	$	242		$	189		$	49		$	(103	)



(In millions)	September 30, 2018		December 31, 2017
Total Assets
U.S. Rental Car	$	14,495	$	12,785
International Rental Car	5,081		3,971
All Other Operations	1,763		1,700
Corporate	1,121		1,602
Total Hertz Global and Hertz	$	22,460	$	20,058

(a)

Adjusted Pre-tax Income (Loss), the Company's segment profitability measure, is calculated as income (loss) before income taxes plus non-cash acquisition accounting charges, debt-related charges relating to the amortization and write-off of debt financing costs and debt discounts and premiums, goodwill, intangible and tangible asset impairments and write downs, information technology and finance transformation costs, income or loss attributable to noncontrolling interests, and certain other miscellaneous or non-recurring items.

Reconciliations of Adjusted Pre-tax Income (Loss) by segment to consolidated amounts are summarized below.

Hertz Global



	Three Months Ended September 30,						Nine Months Ended September 30,
(In millions)	2018			2017			2018			2017
Adjusted Pre-tax Income (Loss):
U.S. Rental Car	$	222		$	158		$	200		$	5
International Rental Car	133			147			201			200
All Other Operations	22			20			68			59
Total reportable segments	377			325			469			264
Corporate⁽¹⁾	(137		)	(137		)	(425		)	(371		)
Adjusted Pre-tax Income (Loss)	240			188			44			(107		)
Adjustments:
Acquisition accounting⁽²⁾	(15		)	(15		)	(46		)	(47		)
Debt-related charges⁽³⁾	(11		)	(12		)	(36		)	(33		)
Loss on extinguishment of debt⁽⁴⁾	—			—			(22		)	(8		)
Restructuring and restructuring related charges⁽⁵⁾	(12		)	(2		)	(26		)	(14		)
Impairment charges and asset write-downs⁽⁶⁾	—			—			—			(116		)
Information technology and finance transformation costs⁽⁷⁾	(24		)	(15		)	(75		)	(55		)
Other⁽⁸⁾	3			(1		)	24			(17		)
Income (loss) before income taxes	$	181		$	143		$	(137	)	$	(397	)

Hertz



	Three Months Ended September 30,						Nine Months Ended September 30,
(In millions)	2018			2017			2018			2017
Adjusted Pre-tax Income (Loss):
U.S. Rental Car	$	222		$	158		$	200		$	5
International Rental Car	133			147			201			200
All Other Operations	22			20			68			59
Total reportable segments	377			325			469			264
Corporate⁽¹⁾	(135		)	(136		)	(420		)	(367		)
Adjusted Pre-tax Income (Loss)	242			189			49			(103		)
Adjustments:
Acquisition accounting⁽²⁾	(15		)	(15		)	(46		)	(47		)
Debt-related charges⁽³⁾	(11		)	(12		)	(36		)	(33		)
Loss on extinguishment of debt⁽⁴⁾	—			—			(22		)	(8		)
Restructuring and restructuring related charges⁽⁵⁾	(12		)	(2		)	(26		)	(14		)
Impairment charges and asset write-downs⁽⁶⁾	—			—			—			(116		)
Information technology and finance transformation costs⁽⁷⁾	(24		)	(15		)	(75		)	(55		)
Other⁽⁸⁾	3			(1		)	24			(17		)
Income (loss) before income taxes	$	183		$	144		$	(132	)	$	(393	)


(1)	Represents general corporate expenses, non-vehicle interest expense, as well as other business activities.


(2)	Represents incremental expense associated with amortization of other intangible assets and depreciation of property and equipment relating to acquisition accounting.


(3)	Primarily represents debt-related charges relating to the amortization of deferred financing costs and debt discounts and premiums.

(4)

In 2018, primarily represents $20 million of early redemption premium and write-off of deferred financing costs associated with the full redemption of the 4.375% European Vehicle Senior Notes due January 2019 in April 2018. In 2017, represents $6 million of early redemption premium and write-off of deferred financing costs associated with the redemption of certain notes and a $2 million write-off of deferred financing costs associated with the termination of commitments under the Senior RCF incurred during the second quarter.

(5)

Represents charges incurred under restructuring actions as defined in U.S. GAAP, excluding impairments and asset write-downs, which are shown separately in the table. Also includes restructuring related charges such as incremental costs incurred directly supporting business transformation initiatives. Such costs include transition costs incurred in connection with business process outsourcing arrangements and incremental costs incurred to facilitate business process re-engineering initiatives that involve significant organization redesign and extensive operational process changes. Also includes consulting costs, legal fees, the loss contingency, which totals $13.6 million for the nine months of 2018, and other expenses related to the previously disclosed accounting review and investigation.


(6)	In 2017, represents a second quarter $86 million impairment of the Dollar Thrifty tradename and a first quarter impairment of $30 million related to an equity method investment.


(7)	Represents costs associated with the Company’s information technology and finance transformation programs, both of which are multi-year initiatives to upgrade and modernize the Company’s systems and processes.

(8)

Represents miscellaneous or non-recurring items. In 2018, includes net loss attributable to noncontrolling interests, a $4 million and $21 million pre-tax gain on marketable securities during the third quarter and nine months, respectively, and a $6 million legal settlement received in the second quarter related to an oil spill in the Gulf of Mexico in 2010. In 2017, includes net expenses of $13 million resulting from hurricanes, partially offset by a $6 million pre-tax gain on the sale of the Company's Brazil Operations in the third quarter. Also, includes second quarter charges of $6 million for labor-related matters and $5 million relating to PLPD as a result of a terrorist event.

Guarantor and Non-Guarantor Condensed Consolidating Financial Information - Hertz

9 Months Ended

Sep. 30, 2018

Guarantor and Non-Guarantor Condensed Consolidating Financial Statements Disclosure [Abstract]

Guarantor and Non-Guarantor Condensed Consolidating Financial Information - Hertz

The following condensed consolidating financial information presents the Condensed Consolidating Balance Sheets as of September 30, 2018 and December 31, 2017, the Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) for the three and nine months ended September 30, 2018 and 2017 and the Statements of Cash Flows for the nine months ended September 30, 2018 and 2017 of (a) The Hertz Corporation, ("Parent”); (b) the Parent's subsidiaries that guarantee the Senior Notes issued by the Parent ("Guarantor Subsidiaries"); (c) the Parent's subsidiaries that do not guarantee the Senior Notes issued by the Parent ("Non-Guarantor Subsidiaries"); (d) elimination entries necessary to consolidate the Parent with the Guarantor Subsidiaries and Non-Guarantor Subsidiaries ("Eliminations"); and of (e) Hertz on a consolidated basis.

Investments in subsidiaries are accounted for using the equity method for purposes of the consolidating presentation. The principal elimination entries relate to investments in subsidiaries and intercompany balances and transactions. The Guarantor Subsidiaries are 100% owned by the Parent and all guarantees are full and unconditional and joint and several. Additionally, substantially all of the assets of the Guarantor Subsidiaries are pledged under the Senior Facilities and Senior Second Priority Secured Notes, and consequently will not be available to satisfy the claims of Hertz's general creditors. In lieu of providing separate unaudited financial statements for the Guarantor Subsidiaries, Hertz has included the accompanying condensed consolidating financial statements based on Rule 3-10 of the SEC's Regulation S-X. Management of Hertz does not believe that separate financial statements of the Guarantor Subsidiaries are material to Hertz's investors; therefore, separate financial statements and other disclosures concerning the Guarantor Subsidiaries are not presented.

During the preparation of the condensed consolidating financial information of The Hertz Corporation and Subsidiaries as of and for the year ended December 31, 2017, it was determined that there were classification errors within the investing section of the statements of cash flows that resulted in overstatement of capital contributions to subsidiaries and return of capital from subsidiaries for the Parent and classification errors within the financing section of the statements of cash flows that resulted in overstatement of capital contributions received from parent and payment of dividends and returns of capital for the Non-Guarantor Subsidiaries. The overstatement was $164 million for the nine months ended September 30, 2017. The errors, which the Company has determined are not material to this disclosure, had no impact to cash from investing activities for the Parent or cash from financing activities of the Non-Guarantor Subsidiaries, and had no impact to any cash flows of the Guarantor Subsidiaries. These errors are eliminated in consolidation and therefore have no impact on the Company’s unaudited condensed consolidated financial condition, results of operations or cash flows. The Company has revised the Condensed Consolidating Statements of Cash Flows for the Parent, Non-Guarantor Subsidiaries and Eliminations for the nine months ended September 30, 2017 to correct for these errors.

THE HERTZ CORPORATION

CONDENSED CONSOLIDATING BALANCE SHEET

September 30, 2018

(In millions)



	Parent (The Hertz Corporation)		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations			The Hertz Corporation & Subsidiaries
ASSETS
Cash and cash equivalents	$	271	$	7	$	483	$	—		$	761
Restricted cash and cash equivalents	90		8		167		—			265
Total cash, cash equivalents, restricted cash and restricted cash equivalents	361		15		650		—			1,026
Receivables, net of allowance	441		166		1,198		—			1,805
Due from affiliates	3,486		5,200		8,575		(17,261		)	—
Prepaid expenses and other assets	4,719		36		292		(4,056		)	991
Revenue earning vehicles, net	453		1		13,123		—			13,577
Property and equipment, net	590		62		129		—			781
Investment in subsidiaries, net	7,695		1,334		—		(9,029		)	—
Other intangible assets, net	139		3,052		6		—			3,197
Goodwill	102		943		38		—			1,083
Total assets	$	17,986	$	10,809	$	24,011	$	(30,346	)	$	22,460
LIABILITIES AND STOCKHOLDER'S EQUITY
Due to affiliates	$	10,728	$	2,270	$	4,263	$	(17,261	)	$	—
Accounts payable	430		112		462		—			1,004
Accrued liabilities	797		67		442		—			1,306
Accrued taxes, net	90		19		2,711		(2,639		)	181
Debt	4,554		—		12,604		—			17,158
Public liability and property damage	185		40		214		—			439
Deferred income taxes, net	—		1,525		1,038		(1,417		)	1,146
Total liabilities	16,784		4,033		21,734		(21,317		)	21,234
Stockholder's equity:
Total stockholder's equity attributable to Hertz	1,202		6,776		2,253		(9,029		)	1,202
Noncontrolling interest	—		—		24		—			24
Total stockholder's equity	1,202		6,776		2,277		(9,029		)	1,226
Total liabilities and stockholder's equity	$	17,986	$	10,809	$	24,011	$	(30,346	)	$	22,460

THE HERTZ CORPORATION

CONDENSED CONSOLIDATING BALANCE SHEET

December 31, 2017

(In millions)



	Parent (The Hertz Corporation)		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations			The Hertz Corporation & Subsidiaries
ASSETS
Cash and cash equivalents	$	686	$	9	$	377	$	—		$	1,072
Restricted cash and cash equivalents	225		7		200		—			432
Total cash, cash equivalents, restricted cash and restricted cash equivalents	911		16		577		—			1,504
Receivables, net of allowance	366		167		832		—			1,365
Due from affiliates	3,373		4,567		8,794		(16,734		)	—
Prepaid expenses and other assets	3,747		37		302		(3,399		)	687
Revenue earning vehicles, net	352		2		10,982		—			11,336
Property and equipment, net	639		61		140		—			840
Investment in subsidiaries, net	7,966		1,265		—		(9,231		)	—
Other intangible assets, net	141		3,091		10		—			3,242
Goodwill	102		944		38		—			1,084
Total assets	$	17,597	$	10,150	$	21,675	$	(29,364	)	$	20,058
LIABILITIES AND STOCKHOLDER'S EQUITY
Due to affiliates	$	10,368	$	2,156	$	4,210	$	(16,734	)	$	—
Accounts payable	375		92		479		—			946
Accrued liabilities	473		73		374		—			920
Accrued taxes, net	77		21		2,235		(2,173		)	160
Debt	4,619		—		10,246		—			14,865
Public liability and property damage	165		37		225		—			427
Deferred income taxes, net	—		1,451		995		(1,226		)	1,220
Total liabilities	16,077		3,830		18,764		(20,133		)	18,538
Stockholder's equity:
Total stockholder's equity	1,520		6,320		2,911		(9,231		)	1,520
Total liabilities and stockholder's equity	$	17,597	$	10,150	$	21,675	$	(29,364	)	$	20,058

THE HERTZ CORPORATION

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

For the Three Months Ended September 30, 2018

(In millions)



	Parent (The Hertz Corporation)			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			The Hertz Corporation & Subsidiaries
Total revenues	$	1,349		$	418		$	2,272		$	(1,281	)	$	2,758
Expenses:
Direct vehicle and operating	865			190			404			—			1,459
Depreciation of revenue earning vehicles and lease charges, net	1,200			91			662			(1,281		)	672
Selling, general and administrative	176			24			65			—			265
Interest (income) expense, net	108			(42		)	120			—			186
Other (income) expense, net	(6		)	—			(1		)	—			(7		)
Total expenses	2,343			263			1,250			(1,281		)	2,575
Income (loss) before income taxes and equity in earnings (losses) of subsidiaries	(994		)	155			1,022			—			183
Income tax (provision) benefit	270			(41		)	(271		)	—			(42		)
Equity in earnings (losses) of subsidiaries, net of tax	866			32			—			(898		)	—
Net income (loss)	142			146			751			(898		)	141
Net (income) loss attributable to noncontrolling interests	—			—			1			—			1
Net income (loss) attributable to Hertz	142			146			752			(898		)	142
Total other comprehensive income (loss), net of tax	—			2			(1		)	(1		)	—
Comprehensive income (loss) attributable to Hertz	$	142		$	148		$	751		$	(899	)	$	142

THE HERTZ CORPORATION

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

For the Three Months Ended September 30, 2017

(In millions)



	Parent (The Hertz Corporation)			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			The Hertz Corporation & Subsidiaries
Total revenues	$	1,296		$	394		$	1,861		$	(979	)	$	2,572
Expenses:
Direct vehicle and operating	772			188			388			—			1,348
Depreciation of revenue earning vehicles and lease charges, net	826			98			669			(893		)	700
Selling, general and administrative	151			9			57			—			217
Interest (income) expense, net	108			(26		)	93			—			175
Intangible asset impairments	—			—			—			—			—
Other (income) expense, net	(4		)	—			(8		)	—			(12		)
Total expenses	1,853			269			1,199			(893		)	2,428
Income (loss) before income taxes and equity in earnings (losses) of subsidiaries	(557		)	125			662			(86		)	144
Income tax (provision) benefit	188			(43		)	(195		)	—			(50		)
Equity in earnings (losses) of subsidiaries, net of tax	463			37			—			(500		)	—
Net income (loss)	94			119			467			(586		)	94
Total other comprehensive income (loss), net of tax	15			4			14			(18		)	15
Total comprehensive income (loss)	$	109		$	123		$	481		$	(604	)	$	109

THE HERTZ CORPORATION

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

For the Nine Months Ended September 30, 2018

(In millions)




	Parent (The Hertz Corporation)			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			The Hertz Corporation & Subsidiaries
Total revenues	$	3,598		$	1,105		$	5,890		$	(3,384	)	$	7,209
Expenses:
Direct vehicle and operating	2,455			544			1,044			—			4,043
Depreciation of revenue earning vehicles and lease charges, net	3,185			273			1,946			(3,384		)	2,020
Selling, general and administrative	516			53			196			—			765
Interest (income) expense, net	311			(112		)	350			—			549
Other (income) expense, net	(33		)	—			(3		)	—			(36		)
Total expenses	6,434			758			3,533			(3,384		)	7,341
Income (loss) before income taxes and equity in earnings (losses) of subsidiaries	(2,836		)	347			2,357			—			(132		)
Income tax (provision) benefit	627			(76		)	(541		)	—			10
Equity in earnings (losses) of subsidiaries, net of tax	2,088			90			—			(2,178		)	—
Net income (loss)	(121		)	361			1,816			(2,178		)	(122		)
Net (income) loss attributable to noncontrolling interests	—			—			1			—			1
Net income (loss) attributable to Hertz	(121		)	361			1,817			(2,178		)	(121		)
Total other comprehensive income (loss), net of tax	(17		)	(3		)	(18		)	21			(17		)
Comprehensive income (loss) attributable to Hertz	$	(138	)	$	358		$	1,799		$	(2,157	)	$	(138	)

THE HERTZ CORPORATION

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

For the Nine Months Ended September 30, 2017

(In millions)




	Parent (The Hertz Corporation)			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			The Hertz Corporation & Subsidiaries
Total revenues	$	3,516		$	1,055		$	5,109		$	(2,967	)	$	6,713
Expenses:
Direct vehicle and operating	2,201			538			996			—			3,735
Depreciation of revenue earning vehicles and lease charges, net	2,587			313			2,004			(2,760		)	2,144
Selling, general and administrative	457			28			176			—			661
Interest (income) expense, net	290			(73		)	244			—			461
Intangible asset impairments	—			86			—			—			86
Other (income) expense, net	30			—			(11		)	—			19
Total expenses	5,565			892			3,409			(2,760		)	7,106
Income (loss) before income taxes and equity in earnings (losses) of subsidiaries	(2,049		)	163			1,700			(207		)	(393		)
Income tax (provision) benefit	760			(57		)	(596		)	—			107
Equity in earnings (losses) of subsidiaries, net of tax	1,003			100			—			(1,103		)	—
Net income (loss)	(286		)	206			1,104			(1,310		)	(286		)
Total other comprehensive income (loss), net of tax	21			6			19			(25		)	21
Total comprehensive income (loss)	$	(265	)	$	212		$	1,123		$	(1,335	)	$	(265	)

THE HERTZ CORPORATION

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the Nine Months Ended September 30, 2018

(In millions)



	Parent (The Hertz Corporation)			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			The Hertz Corporation & Subsidiaries
Net cash provided by (used in) operating activities	$	187		$	7		$	3,732		$	(1,905	)	$	2,021
Cash flows from investing activities:
Revenue earning vehicles expenditures	(328		)	—			(9,748		)	—			(10,076		)
Proceeds from disposal of revenue earning vehicles	183			—			5,195			—			5,378
Capital asset expenditures, non-vehicle	(85		)	(8		)	(26		)	—			(119		)
Proceeds from property and other equipment disposed of or to be disposed of	41			—			6			—			47
Purchases of marketable securities	(60		)	—			—			—			(60		)
Sales of marketable securities	36			—			—			—			36
Other	(2		)	—			(3		)	—			(5		)
Capital contributions to subsidiaries	(2,817		)	—			—			2,817			—
Return of capital from subsidiaries	2,445			—			—			(2,445		)	—
Proceeds from/repayments of intercompany loan	—			—			78			(78		)	—
Net cash provided by (used in) investing activities	(587		)	(8		)	(4,498		)	294			(4,799		)
Cash flows from financing activities:
Proceeds from issuance of vehicle debt	1,809			—			10,062			—			11,871
Repayments of vehicle debt	(1,862		)	—			(7,663		)	—			(9,525		)
Proceeds from issuance of non-vehicle debt	387			—			—			—			387
Repayments of non-vehicle debt	(398		)	—			—			—			(398		)
Payment of financing costs	(1		)	—			(29		)	—			(30		)
Early redemption premium payment	—			—			(19		)	—			(19		)
Advances to Hertz Holdings	(7		)	—			—			—			(7		)
Contributions from noncontrolling interest owners	—			—			25			—			25
Capital contributions received from parent	—			—			2,817			(2,817		)	—
Payment of dividends and return of capital	—			—			(4,350		)	4,350			—
Proceeds from/repayments of intercompany loan	(78		)	—			—			78			—
Net cash provided by (used in) financing activities	(150		)	—			843			1,611			2,304
Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents	—			—			(4		)	—			(4		)
Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents during the period	(550		)	(1		)	73			—			(478		)
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period	911			16			577			—			1,504
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period	$	361		$	15		$	650		$	—		$	1,026

THE HERTZ CORPORATION

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the Nine Months Ended September 30, 2017

(In millions)



	Parent (The Hertz Corporation)			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			The Hertz Corporation & Subsidiaries
Net cash provided by (used in) operating activities	$	(80	)	$	17		$	3,255		$	(1,211	)	$	1,981
Cash flows from investing activities:
Revenue earning vehicles expenditures	(195		)	(5		)	(8,483		)	—			(8,683		)
Proceeds from disposal of revenue earning vehicles	123			—			5,162			—			5,285
Capital asset expenditures, non-vehicle	(82		)	(8		)	(34		)	—			(124		)
Proceeds from disposal of property and other equipment	7			—			11			—			18
Proceeds from sale of Brazil Operations, net of retained cash	—			—			94			—			94
Sales of marketable securities	—			—			9			—			9
Other	—			—			(4		)	—			(4		)
Capital contributions to subsidiaries	(2,060		)	—			—			2,060			—
Return of capital from subsidiaries	2,099			—			—			(2,099		)	—
Proceeds from/repayments of intercompany loan	—			—			80			(80		)	—
Net cash provided by (used in) investing activities	(108		)	(13		)	(3,165		)	(119		)	(3,405		)
Cash flows from financing activities:
Proceeds from issuance of vehicle debt	1,133			—			5,774			—			6,907
Repayments of vehicle debt	(1,129		)	—			(4,758		)	—			(5,887		)
Proceeds from issuance of non-vehicle debt	2,100			—			—			—			2,100
Repayments of non-vehicle debt	(986		)	—			—			—			(986		)
Payment of financing costs	(18		)	(4		)	(21		)	—			(43		)
Early redemption premium payment	(5		)	—			—			—			(5		)
Advances to Hertz Holdings	(4		)	—			—			—			(4		)
Other	(1		)	—			—			—			(1		)
Capital contributions received from parent	—			—			2,060			(2,060		)	—
Payment of dividends and return of capital	—			—			(3,310		)	3,310			—
Proceeds from/repayments of intercompany loan	(80		)	—			—			80			—
Net cash provided by (used in) financing activities	1,010			(4		)	(255		)	1,330			2,081
Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents	—			—			26			—			26
Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents during the period	822			—			(139		)	—			683
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period	510			18			566			—			1,094
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period	$	1,332		$	18		$	427		$	—		$	1,777

Basis of Presentation and Recently Issued Accounting Pronouncements (Policies)

9 Months Ended

Sep. 30, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Principles of Consolidation

Recently Issued Accounting Pronouncements

The impact to the unaudited condensed consolidated statement of cash flows of adopting this guidance is as follows:

Hertz Global



	Nine Months Ended September 30, 2017
(In millions)	As Previously Reported			Adjustments			As Adjusted
Net change in restricted cash and cash equivalents, vehicle	$	89		$	(89	)	$	—
Net cash provided by (used in) investing activities	(3,316		)	(89		)	(3,405		)
Net change in restricted cash and cash equivalents, non-vehicle	(833		)	833			—
Net cash provided by (used in) financing activities	1,252			833			2,085
Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash⁽¹⁾	19			7			26
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period⁽¹⁾	816			278			1,094
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period⁽¹⁾	748			1,029			1,777

Hertz



	Nine Months Ended September 30, 2017
(In millions)	As Previously Reported			Adjustments			As Adjusted
Net change in restricted cash and cash equivalents, vehicle	$	89		$	(89	)	$	—
Net cash provided by (used in) investing activities	(3,316		)	(89		)	(3,405		)
Net change in restricted cash and cash equivalents, non-vehicle	(833		)	833			—
Net cash provided by (used in) financing activities	1,248			833			2,081
Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash⁽¹⁾	19			7			26
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period⁽¹⁾	816			278			1,094
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period⁽¹⁾	748			1,029			1,777

Recently Issued Accounting Pronouncements

Adopted

Revenue from Contracts with Customers

Hertz Global



(In millions)	Deferred income taxes, net			Accrued liabilities		Total liabilities		Accumulated deficit			Total equity			Total liabilities and equity
As of December 31, 2017	$	1,220		$	920	$	18,538	$	(506	)	$	1,520		$	20,058
Effect of Adopting ASC 606	(51		)	240		189		(189		)	(189		)	—
As of January 1, 2018	$	1,169		$	1,160	$	18,727	$	(695	)	$	1,331		$	20,058

Hertz



(In millions)	Deferred income taxes, net			Accrued liabilities		Total liabilities		Accumulated deficit			Total equity			Total liabilities and equity
As of December 31, 2017	$	1,220		$	920	$	18,538	$	(1,486	)	$	1,520		$	20,058
Effect of Adopting ASC 606	(51		)	240		189		(189		)	(189		)	—
As of January 1, 2018	$	1,169		$	1,160	$	18,727	$	(1,675	)	$	1,331		$	20,058

Hertz Global



(In millions, except per share data)	As Reported			Effect of Adoption Increase (Decrease)			Balances Without Adoption
Unaudited Condensed Consolidated Balance Sheet as of September 30, 2018:
Accrued liabilities	$	1,306		$	245		$	1,061
Deferred income taxes, net	1,145			(53		)	1,198
Total liabilities	21,233			192			21,041
Accumulated deficit	(819		)	(192		)	(627		)
Total stockholders' equity	1,227			(192		)	1,419
Unaudited Condensed Consolidated Statement of Operations for the Three Months Ended September 30, 2018:
Worldwide vehicle rental revenues	$	2,584		$	(7	)	$	2,591
Selling, general and administrative expense	265			(1		)	266
Income (loss) before income taxes	181			(6		)	187
Income tax (provision) benefit	(41		)	—			(41		)
Net income (loss)	140			(6		)	146
Net (income) loss attributable to noncontrolling interests	1			—			1
Net income (loss) attributable to Hertz Global	141			(6		)	147
Basic earnings (loss) per share	1.68			(0.07		)	1.75
Diluted earnings (loss) per share	1.68			(0.07		)	1.75
Unaudited Condensed Consolidated Statement of Operations for the Nine Months Ended September 30, 2018:
Worldwide vehicle rental revenues	$	6,694		$	(6	)	$	6,700
Selling, general and administrative expense	765			(1		)	766
Income (loss) before income taxes	(137		)	(5		)	(132		)
Income tax (provision) benefit	12			2			10
Net income (loss)	(125		)	(3		)	(122		)
Net (income) loss attributable to noncontrolling interests	1			—			1
Net income (loss) attributable to Hertz Global	(124		)	(3		)	(121		)
Basic earnings (loss) per share	(1.49		)	(0.04		)	(1.45		)
Diluted earnings (loss) per share	(1.49		)	(0.04		)	(1.45		)
Unaudited Condensed Consolidated Statement of Cash Flow for the Nine Months Ended September 30, 2018:
Cash flows from operating activities:
Net income (loss)	$	(125	)	$	(3	)	$	(122	)
Deferred income taxes, net	(39		)	(2		)	(37		)
Accrued liabilities	106			5			101

Hertz



(In millions, except per share data)	As Reported			Effect of Adoption Increase (Decrease)			Balances Without Adoption
Unaudited Condensed Consolidated Balance Sheet as of September 30, 2018:
Accrued liabilities	$	1,306		$	245		$	1,061
Deferred income taxes, net	1,146			(53		)	1,199
Total liabilities	21,234			192			21,042
Accumulated deficit	(1,796		)	(192		)	(1,604		)
Total stockholders' equity	1,226			(192		)	1,418
Unaudited Condensed Consolidated Statement of Operations for the Three Months Ended September 30, 2018:
Worldwide vehicle rental revenues	$	2,584		$	(7	)	$	2,591
Selling, general and administrative expense	265			(1		)	266
Income (loss) before income taxes	183			(6		)	189
Income tax (provision) benefit	(42		)	—			(42		)
Net income (loss)	141			(6		)	147
Net (income) loss attributable to noncontrolling interests	1			—			1
Net income (loss) attributable to Hertz	142			(6		)	148
Unaudited Condensed Consolidated Statement of Operations for the Nine Months Ended September 30, 2018:
Worldwide vehicle rental revenues	$	6,694		$	(6	)	$	6,700
Selling, general and administrative expense	765			(1		)	766
Income (loss) before income taxes	(132		)	(5		)	(127		)
Income tax (provision) benefit	10			2			8
Net income (loss)	(122		)	(3		)	(119		)
Net (income) loss attributable to noncontrolling interests	1			—			1
Net income (loss) attributable to Hertz	(121		)	(3		)	(118		)
Unaudited Condensed Consolidated Statement of Cash Flow for the Nine Months Ended September 30, 2018:
Cash flows from operating activities:
Net income (loss)	$	(122	)	$	(3	)	$	(119	)
Deferred income taxes, net	(38		)	(2		)	(36		)
Accrued liabilities	106			5			101

Restricted Cash

Hertz Global



	Nine Months Ended September 30, 2017
(In millions)	As Previously Reported			Adjustments			As Adjusted
Net change in restricted cash and cash equivalents, vehicle	$	89		$	(89	)	$	—
Net cash provided by (used in) investing activities	(3,316		)	(89		)	(3,405		)
Net change in restricted cash and cash equivalents, non-vehicle	(833		)	833			—
Net cash provided by (used in) financing activities	1,252			833			2,085
Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash⁽¹⁾	19			7			26
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period⁽¹⁾	816			278			1,094
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period⁽¹⁾	748			1,029			1,777

Hertz



	Nine Months Ended September 30, 2017
(In millions)	As Previously Reported			Adjustments			As Adjusted
Net change in restricted cash and cash equivalents, vehicle	$	89		$	(89	)	$	—
Net cash provided by (used in) investing activities	(3,316		)	(89		)	(3,405		)
Net change in restricted cash and cash equivalents, non-vehicle	(833		)	833			—
Net cash provided by (used in) financing activities	1,248			833			2,081
Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash⁽¹⁾	19			7			26
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period⁽¹⁾	816			278			1,094
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period⁽¹⁾	748			1,029			1,777


(1)	The amounts as previously reported were comprised of cash and cash equivalents and did not include restricted cash and restricted cash equivalents.

Not Yet Adopted

Leases

Lessee

Lessor

Reporting Comprehensive Income

Changes to Disclosure Requirements for Defined Benefit Plans

Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement

Basis of Presentation and Recently Issued Accounting Pronouncements (Tables)

9 Months Ended

Sep. 30, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

Hertz Global



(In millions)	Deferred income taxes, net			Accrued liabilities		Total liabilities		Accumulated deficit			Total equity			Total liabilities and equity
As of December 31, 2017	$	1,220		$	920	$	18,538	$	(506	)	$	1,520		$	20,058
Effect of Adopting ASC 606	(51		)	240		189		(189		)	(189		)	—
As of January 1, 2018	$	1,169		$	1,160	$	18,727	$	(695	)	$	1,331		$	20,058

Hertz



(In millions)	Deferred income taxes, net			Accrued liabilities		Total liabilities		Accumulated deficit			Total equity			Total liabilities and equity
As of December 31, 2017	$	1,220		$	920	$	18,538	$	(1,486	)	$	1,520		$	20,058
Effect of Adopting ASC 606	(51		)	240		189		(189		)	(189		)	—
As of January 1, 2018	$	1,169		$	1,160	$	18,727	$	(1,675	)	$	1,331		$	20,058

Hertz Global



(In millions, except per share data)	As Reported			Effect of Adoption Increase (Decrease)			Balances Without Adoption
Unaudited Condensed Consolidated Balance Sheet as of September 30, 2018:
Accrued liabilities	$	1,306		$	245		$	1,061
Deferred income taxes, net	1,145			(53		)	1,198
Total liabilities	21,233			192			21,041
Accumulated deficit	(819		)	(192		)	(627		)
Total stockholders' equity	1,227			(192		)	1,419
Unaudited Condensed Consolidated Statement of Operations for the Three Months Ended September 30, 2018:
Worldwide vehicle rental revenues	$	2,584		$	(7	)	$	2,591
Selling, general and administrative expense	265			(1		)	266
Income (loss) before income taxes	181			(6		)	187
Income tax (provision) benefit	(41		)	—			(41		)
Net income (loss)	140			(6		)	146
Net (income) loss attributable to noncontrolling interests	1			—			1
Net income (loss) attributable to Hertz Global	141			(6		)	147
Basic earnings (loss) per share	1.68			(0.07		)	1.75
Diluted earnings (loss) per share	1.68			(0.07		)	1.75
Unaudited Condensed Consolidated Statement of Operations for the Nine Months Ended September 30, 2018:
Worldwide vehicle rental revenues	$	6,694		$	(6	)	$	6,700
Selling, general and administrative expense	765			(1		)	766
Income (loss) before income taxes	(137		)	(5		)	(132		)
Income tax (provision) benefit	12			2			10
Net income (loss)	(125		)	(3		)	(122		)
Net (income) loss attributable to noncontrolling interests	1			—			1
Net income (loss) attributable to Hertz Global	(124		)	(3		)	(121		)
Basic earnings (loss) per share	(1.49		)	(0.04		)	(1.45		)
Diluted earnings (loss) per share	(1.49		)	(0.04		)	(1.45		)
Unaudited Condensed Consolidated Statement of Cash Flow for the Nine Months Ended September 30, 2018:
Cash flows from operating activities:
Net income (loss)	$	(125	)	$	(3	)	$	(122	)
Deferred income taxes, net	(39		)	(2		)	(37		)
Accrued liabilities	106			5			101

Hertz



(In millions, except per share data)	As Reported			Effect of Adoption Increase (Decrease)			Balances Without Adoption
Unaudited Condensed Consolidated Balance Sheet as of September 30, 2018:
Accrued liabilities	$	1,306		$	245		$	1,061
Deferred income taxes, net	1,146			(53		)	1,199
Total liabilities	21,234			192			21,042
Accumulated deficit	(1,796		)	(192		)	(1,604		)
Total stockholders' equity	1,226			(192		)	1,418
Unaudited Condensed Consolidated Statement of Operations for the Three Months Ended September 30, 2018:
Worldwide vehicle rental revenues	$	2,584		$	(7	)	$	2,591
Selling, general and administrative expense	265			(1		)	266
Income (loss) before income taxes	183			(6		)	189
Income tax (provision) benefit	(42		)	—			(42		)
Net income (loss)	141			(6		)	147
Net (income) loss attributable to noncontrolling interests	1			—			1
Net income (loss) attributable to Hertz	142			(6		)	148
Unaudited Condensed Consolidated Statement of Operations for the Nine Months Ended September 30, 2018:
Worldwide vehicle rental revenues	$	6,694		$	(6	)	$	6,700
Selling, general and administrative expense	765			(1		)	766
Income (loss) before income taxes	(132		)	(5		)	(127		)
Income tax (provision) benefit	10			2			8
Net income (loss)	(122		)	(3		)	(119		)
Net (income) loss attributable to noncontrolling interests	1			—			1
Net income (loss) attributable to Hertz	(121		)	(3		)	(118		)
Unaudited Condensed Consolidated Statement of Cash Flow for the Nine Months Ended September 30, 2018:
Cash flows from operating activities:
Net income (loss)	$	(122	)	$	(3	)	$	(119	)
Deferred income taxes, net	(38		)	(2		)	(36		)
Accrued liabilities	106			5			101

Revenue Earning Vehicles (Tables)

9 Months Ended

Sep. 30, 2018

Revenue Earning Vehicles [Abstract]

Components of Revenue Earning Vehicles

The components of revenue earning vehicles, net are as follows:



(In millions)	September 30, 2018			December 31, 2017
Revenue earning vehicles	$	16,376		$	14,209
Less accumulated depreciation	(3,231		)	(3,123		)
	13,145			11,086
Revenue earning vehicles held for sale, net	432			250
Revenue earning vehicles, net	$	13,577		$	11,336

Depreciation on Revenue Earning Vehicles and Lease Charges

Depreciation of revenue earning vehicles and lease charges, net includes the following:



	Three Months Ended September 30,				Nine Months Ended September 30,
(In millions)	2018		2017		2018		2017
Depreciation of revenue earning vehicles	$	619	$	636	$	1,847	$	1,902
(Gain) loss on disposal of revenue earning vehicles, net^(a)	27		43		105		187
Lease charges	26		21		68		55
Depreciation of revenue earning vehicles and lease charges, net	$	672	$	700	$	2,020	$	2,144

(a) (Gain) loss on disposal of revenue earning vehicles, net by segment is as follows:



	Three Months Ended September 30,					Nine Months Ended September 30,
(In millions)	2018			2017		2018			2017
U.S. Rental Car⁽ⁱ⁾	$	29		$	43	$	107		$	187
International Rental Car	(2		)	—		(2		)	—
Total	$	27		$	43	$	105		$	187


(i)	Includes costs associated with the Company's U.S. vehicle sales operations of $39 million and $36 million for the three months ended September 30, 2018 and 2017, respectively, and $109 million and $99 million for the nine months ended September 30, 2018 and 2017, respectively.

Impact of Depreciation Rate Changes



Increase (decrease)	Three Months Ended September 30,					Nine Months Ended September 30,
(In millions)	2018			2017		2018			2017
U.S. Rental Car^(a)	$	(32	)	$	6	$	(20	)	$	68
International Rental Car	(1		)	4		2			5
Total	$	(33	)	$	10	$	(18	)	$	73

(a)

Debt (Tables)

9 Months Ended

Sep. 30, 2018

Debt Disclosure [Abstract]

Components of debt

The Company's debt, including its available credit facilities, consists of the following ($ in millions):



Facility	Weighted Average Interest Rate as of September 30, 2018	Fixed or Floating Interest Rate	Maturity	September 30, 2018			December 31, 2017
Non-Vehicle Debt
Senior Term Loan	5.00%	Floating	6/2023	$	677		$	688
Senior RCF	N/A	Floating	6/2021	—			—
Senior Notes⁽¹⁾	6.13%	Fixed	10/2020-10/2024	2,500			2,500
Senior Second Priority Secured Notes	7.63%	Fixed	6/2022	1,250			1,250
Promissory Notes	7.00%	Fixed	1/2028	27			27
Other Non-Vehicle Debt	3.08%	Fixed	Various	2			11
Unamortized Debt Issuance Costs and Net (Discount) Premium				(35		)	(42		)
Total Non-Vehicle Debt				4,421			4,434
Vehicle Debt
HVF U.S. Vehicle Medium Term Notes
HVF Series 2010-1	N/A	N/A	N/A	—			39
HVF Series 2013-1⁽²⁾	N/A	N/A	N/A	—			625
				—			664
HVF II U.S. ABS Program
HVF II U.S. Vehicle Variable Funding Notes
HVF II Series 2013-A⁽²⁾	3.68%	Floating	3/2020	3,170			1,970
HVF II Series 2013-B⁽²⁾	3.66%	Floating	3/2020	15			123
				3,185			2,093



Facility	Weighted Average Interest Rate as of September 30, 2018	Fixed or Floating Interest Rate	Maturity	September 30, 2018			December 31, 2017
HVF II U.S. Vehicle Medium Term Notes
HVF II Series 2015-1⁽²⁾	2.93%	Fixed	3/2020	780			780
HVF II Series 2015-2⁽²⁾	N/A	N/A	N/A	—			265
HVF II Series 2015-3⁽²⁾	3.10%	Fixed	9/2020	371			371
HVF II Series 2016-1⁽²⁾	2.89%	Fixed	3/2019	466			466
HVF II Series 2016-2⁽²⁾	3.41%	Fixed	3/2021	595			595
HVF II Series 2016-3⁽²⁾	2.72%	Fixed	7/2019	424			424
HVF II Series 2016-4⁽²⁾	3.09%	Fixed	7/2021	424			424
HVF II Series 2017-1⁽²⁾	3.38%	Fixed	10/2020	450			450
HVF II Series 2017-2⁽²⁾	3.57%	Fixed	10/2022	350			350
HVF II Series 2018-1⁽²⁾	3.41%	Fixed	2/2023	1,000			—
HVF II Series 2018-2⁽²⁾	3.80%	Fixed	6/2021	200			—
HVF II Series 2018-3⁽²⁾	4.15%	Fixed	7/2023	200			—
				5,260			4,125
Donlen ABS Program
HFLF Variable Funding Notes
HFLF Series 2013-2⁽²⁾	2.72%	Floating	3/2020	170			380
				170			380
HFLF Medium Term Notes
HFLF Series 2015-1⁽³⁾	3.22%	Floating	10/2018-3/2019	58			145
HFLF Series 2016-1⁽³⁾	3.28%	Both	10/2018-2/2020	204			318
HFLF Series 2017-1⁽³⁾	2.66%	Both	10/2018-2/2021	437			500
HFLF Series 2018-1⁽³⁾	2.58%	Both	7/2019-6/2021	550			—
				1,249			963
Vehicle Debt - Other
U.S. Vehicle RCF	4.52%	Floating	6/2021	133			186
European Revolving Credit Facility	2.95%	Floating	10/2018-3/2020	514			184
European Vehicle Notes⁽⁴⁾	5.07%	Fixed	10/2021-3/2023	851			773
European Securitization⁽²⁾	1.70%	Floating	10/2018-3/2020	515			367
Canadian Securitization⁽²⁾	3.27%	Floating	10/2018-3/2020	315			237
Australian Securitization⁽²⁾	3.56%	Floating	3/2020	142			155
New Zealand RCF	4.61%	Floating	3/2020	40			42
U.K. Financing Facility	3.08%	Floating	10/2018-8/2021	363			251
Other Vehicle Debt	4.01%	Floating	10/2018-10/2022	47			51
				2,920			2,246
Unamortized Debt Issuance Costs and Net (Discount) Premium				(47		)	(40		)
Total Vehicle Debt				12,737			10,431
Total Debt				$	17,158		$	14,865

N/A - Not applicable


(1)	References to the "Senior Notes" include the series of Hertz's unsecured senior notes set forth on the table below. Outstanding principal amounts for each such series of the Senior Notes is also specified below:



(In millions)	Outstanding Principal
Senior Notes	September 30, 2018		December 31, 2017
5.875% Senior Notes due October 2020	$	700	$	700
7.375% Senior Notes due January 2021	500		500
6.250% Senior Notes due October 2022	500		500
5.500% Senior Notes due October 2024	800		800
	$	2,500	$	2,500

(2)

(3)

(4)



(In millions)	Outstanding Principal
European Vehicle Notes	September 30, 2018		December 31, 2017
4.375% Senior Notes due January 2019	$	—	$	505
4.125% Senior Notes due October 2021	264		268
5.500% Senior Notes due March 2023	587		—
	$	851	$	773

The fair value of debt is estimated based on quoted market rates as well as borrowing rates currently available to the Company for loans with similar terms and average maturities (Level 2 inputs).



	As of September 30, 2018				As of December 31, 2017
(In millions)	Nominal Unpaid Principal Balance		Aggregate Fair Value		Nominal Unpaid Principal Balance		Aggregate Fair Value
Non-vehicle Debt	$	4,456	$	4,254	$	4,476	$	4,438
Vehicle Debt	12,784		12,715		10,471		10,456
Total	$	17,240	$	16,969	$	14,947	$	14,894

Schedule of facilities available for the use of the company and its subsidiaries

The following facilities were available to the Company as of September 30, 2018, and are presented net of any outstanding letters of credit:



(In millions)	Remaining Capacity		Availability Under Borrowing Base Limitation
Non-Vehicle Debt
Senior RCF	$	505	$	505
Letter of Credit Facility	1		1
Total Non-Vehicle Debt	506		506
Vehicle Debt
U.S. Vehicle RCF	—		—
HVF II U.S. Vehicle Variable Funding Notes	480		—
HFLF Variable Funding Notes	330		1
European Revolving Credit Facility	—		—
European Securitization	25		5
Canadian Securitization	—		—
Australian Securitization	40		—
U.K. Financing Facility	32		—
New Zealand RCF	—		—
Total Vehicle Debt	907		6
Total	$	1,413	$	512

Revenue (Tables)

9 Months Ended

Sep. 30, 2018

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

The following table presents revenues from contracts with customers by reportable segment and disaggregated by product/service and type of location and customer:



	Three Months Ending September 30, 2018
(In millions)	U.S. Rental Car		International Rental Car		All Other Operations		Consolidated
Vehicle rental and rental related:
Airport	$	1,279	$	446	$	—	$	1,725
Off airport	535		242		—		777
Total vehicle rental and rental related	1,814		688		—		2,502

Other:
Licensee revenue	10		44		—		54
Ancillary retail vehicle sales	27		—		—		27
Fleet management	—		—		10		10
Total other	37		44		10		91
Total revenue from contracts with customers	$	1,851	$	732	$	10	$	2,593



	Nine Months Ending September 30, 2018
(In millions)	U.S. Rental Car		International Rental Car		All Other Operations		Consolidated
Vehicle rental and rental related:
Airport	$	3,403	$	1,029	$	—	$	4,432
Off airport	1,400		646		—		2,046
Total vehicle rental and rental related	4,803		1,675		—		6,478

Other:
Licensee revenue	24		114		—		138
Ancillary retail vehicle sales	78		—		—		78
Fleet management	—		—		32		32
Total other	102		114		32		248
Total revenue from contracts with customers	$	4,905	$	1,789	$	32	$	6,726

Earnings (Loss) Per Share - Hertz Global (Tables)

9 Months Ended

Sep. 30, 2018

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

The following table sets forth the computation of basic and diluted earnings (loss) per share:



	Three Months Ended September 30,				Nine Months Ended September 30,
(In millions, except per share data)	2018		2017		2018			2017
Basic and diluted earnings (loss) per share:
Numerator:
Net income (loss) attributable to Hertz Global	$	141	$	93	$	(124	)	$	(289	)
Denominator:
Basic weighted average shares outstanding	84		83		83			83
Dilutive stock options, RSUs, PSUs and PSAs	—		—		—			—
Diluted weighted average shares outstanding	84		83		83			83
Antidilutive stock options, RSUs, PSUs and PSAs	1		3		1			3
Earnings (loss) per share:
Basic earnings (loss) per share	$	1.68	$	1.12	$	(1.49	)	$	(3.48	)
Diluted earnings (loss) per share	$	1.68	$	1.12	$	(1.49	)	$	(3.48	)

Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2018

Fair Value Disclosures [Abstract]

Cash, Cash Equivalents and Investments

The following table summarizes the ending balances of the Company's cash equivalents, restricted cash equivalents and investments:



	September 30, 2018								December 31, 2017
(In millions)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Money market funds and time deposits	$	356	$	—	$	—	$	356	$	634	$	—	$	—	$	634
Equity securities	45		—		—		45		—		—		—		—

Components of debt

The Company's debt, including its available credit facilities, consists of the following ($ in millions):



Facility	Weighted Average Interest Rate as of September 30, 2018	Fixed or Floating Interest Rate	Maturity	September 30, 2018			December 31, 2017
Non-Vehicle Debt
Senior Term Loan	5.00%	Floating	6/2023	$	677		$	688
Senior RCF	N/A	Floating	6/2021	—			—
Senior Notes⁽¹⁾	6.13%	Fixed	10/2020-10/2024	2,500			2,500
Senior Second Priority Secured Notes	7.63%	Fixed	6/2022	1,250			1,250
Promissory Notes	7.00%	Fixed	1/2028	27			27
Other Non-Vehicle Debt	3.08%	Fixed	Various	2			11
Unamortized Debt Issuance Costs and Net (Discount) Premium				(35		)	(42		)
Total Non-Vehicle Debt				4,421			4,434
Vehicle Debt
HVF U.S. Vehicle Medium Term Notes
HVF Series 2010-1	N/A	N/A	N/A	—			39
HVF Series 2013-1⁽²⁾	N/A	N/A	N/A	—			625
				—			664
HVF II U.S. ABS Program
HVF II U.S. Vehicle Variable Funding Notes
HVF II Series 2013-A⁽²⁾	3.68%	Floating	3/2020	3,170			1,970
HVF II Series 2013-B⁽²⁾	3.66%	Floating	3/2020	15			123
				3,185			2,093



Facility	Weighted Average Interest Rate as of September 30, 2018	Fixed or Floating Interest Rate	Maturity	September 30, 2018			December 31, 2017
HVF II U.S. Vehicle Medium Term Notes
HVF II Series 2015-1⁽²⁾	2.93%	Fixed	3/2020	780			780
HVF II Series 2015-2⁽²⁾	N/A	N/A	N/A	—			265
HVF II Series 2015-3⁽²⁾	3.10%	Fixed	9/2020	371			371
HVF II Series 2016-1⁽²⁾	2.89%	Fixed	3/2019	466			466
HVF II Series 2016-2⁽²⁾	3.41%	Fixed	3/2021	595			595
HVF II Series 2016-3⁽²⁾	2.72%	Fixed	7/2019	424			424
HVF II Series 2016-4⁽²⁾	3.09%	Fixed	7/2021	424			424
HVF II Series 2017-1⁽²⁾	3.38%	Fixed	10/2020	450			450
HVF II Series 2017-2⁽²⁾	3.57%	Fixed	10/2022	350			350
HVF II Series 2018-1⁽²⁾	3.41%	Fixed	2/2023	1,000			—
HVF II Series 2018-2⁽²⁾	3.80%	Fixed	6/2021	200			—
HVF II Series 2018-3⁽²⁾	4.15%	Fixed	7/2023	200			—
				5,260			4,125
Donlen ABS Program
HFLF Variable Funding Notes
HFLF Series 2013-2⁽²⁾	2.72%	Floating	3/2020	170			380
				170			380
HFLF Medium Term Notes
HFLF Series 2015-1⁽³⁾	3.22%	Floating	10/2018-3/2019	58			145
HFLF Series 2016-1⁽³⁾	3.28%	Both	10/2018-2/2020	204			318
HFLF Series 2017-1⁽³⁾	2.66%	Both	10/2018-2/2021	437			500
HFLF Series 2018-1⁽³⁾	2.58%	Both	7/2019-6/2021	550			—
				1,249			963
Vehicle Debt - Other
U.S. Vehicle RCF	4.52%	Floating	6/2021	133			186
European Revolving Credit Facility	2.95%	Floating	10/2018-3/2020	514			184
European Vehicle Notes⁽⁴⁾	5.07%	Fixed	10/2021-3/2023	851			773
European Securitization⁽²⁾	1.70%	Floating	10/2018-3/2020	515			367
Canadian Securitization⁽²⁾	3.27%	Floating	10/2018-3/2020	315			237
Australian Securitization⁽²⁾	3.56%	Floating	3/2020	142			155
New Zealand RCF	4.61%	Floating	3/2020	40			42
U.K. Financing Facility	3.08%	Floating	10/2018-8/2021	363			251
Other Vehicle Debt	4.01%	Floating	10/2018-10/2022	47			51
				2,920			2,246
Unamortized Debt Issuance Costs and Net (Discount) Premium				(47		)	(40		)
Total Vehicle Debt				12,737			10,431
Total Debt				$	17,158		$	14,865

N/A - Not applicable


(1)	References to the "Senior Notes" include the series of Hertz's unsecured senior notes set forth on the table below. Outstanding principal amounts for each such series of the Senior Notes is also specified below:



(In millions)	Outstanding Principal
Senior Notes	September 30, 2018		December 31, 2017
5.875% Senior Notes due October 2020	$	700	$	700
7.375% Senior Notes due January 2021	500		500
6.250% Senior Notes due October 2022	500		500
5.500% Senior Notes due October 2024	800		800
	$	2,500	$	2,500

(2)

(3)

(4)



(In millions)	Outstanding Principal
European Vehicle Notes	September 30, 2018		December 31, 2017
4.375% Senior Notes due January 2019	$	—	$	505
4.125% Senior Notes due October 2021	264		268
5.500% Senior Notes due March 2023	587		—
	$	851	$	773

The fair value of debt is estimated based on quoted market rates as well as borrowing rates currently available to the Company for loans with similar terms and average maturities (Level 2 inputs).



	As of September 30, 2018				As of December 31, 2017
(In millions)	Nominal Unpaid Principal Balance		Aggregate Fair Value		Nominal Unpaid Principal Balance		Aggregate Fair Value
Non-vehicle Debt	$	4,456	$	4,254	$	4,476	$	4,438
Vehicle Debt	12,784		12,715		10,471		10,456
Total	$	17,240	$	16,969	$	14,947	$	14,894

Segment Information (Tables)

9 Months Ended

Sep. 30, 2018

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment



	Three Months Ended September 30,						Nine Months Ended September 30,
(In millions)	2018			2017			2018			2017
Revenues
U.S. Rental Car	$	1,852		$	1,685		$	4,905		$	4,557
International Rental Car	732			728			1,789			1,683
All Other Operations	174			159			515			473
Total Hertz Global and Hertz	$	2,758		$	2,572		$	7,209		$	6,713
Depreciation of revenue earning vehicles and lease charges, net
U.S. Rental Car	$	414		$	455		$	1,295		$	1,478
International Rental Car	128			126			342			311
All Other Operations	130			119			383			355
Total Hertz Global and Hertz	$	672		$	700		$	2,020		$	2,144
Adjusted Pre-tax Income (Loss)^(a)
U.S. Rental Car	$	222		$	158		$	200		$	5
International Rental Car	133			147			201			200
All Other Operations	22			20			68			59
Corporate	(137		)	(137		)	(425		)	(371		)
Total Hertz Global	240			188			44			(107		)
Corporate - Hertz	2			1			5			4
Total Hertz	$	242		$	189		$	49		$	(103	)



(In millions)	September 30, 2018		December 31, 2017
Total Assets
U.S. Rental Car	$	14,495	$	12,785
International Rental Car	5,081		3,971
All Other Operations	1,763		1,700
Corporate	1,121		1,602
Total Hertz Global and Hertz	$	22,460	$	20,058

(a)

Reconciliations of Adjusted Pre-tax Income (Loss) by segment to consolidated amounts are summarized below.

Hertz Global



	Three Months Ended September 30,						Nine Months Ended September 30,
(In millions)	2018			2017			2018			2017
Adjusted Pre-tax Income (Loss):
U.S. Rental Car	$	222		$	158		$	200		$	5
International Rental Car	133			147			201			200
All Other Operations	22			20			68			59
Total reportable segments	377			325			469			264
Corporate⁽¹⁾	(137		)	(137		)	(425		)	(371		)
Adjusted Pre-tax Income (Loss)	240			188			44			(107		)
Adjustments:
Acquisition accounting⁽²⁾	(15		)	(15		)	(46		)	(47		)
Debt-related charges⁽³⁾	(11		)	(12		)	(36		)	(33		)
Loss on extinguishment of debt⁽⁴⁾	—			—			(22		)	(8		)
Restructuring and restructuring related charges⁽⁵⁾	(12		)	(2		)	(26		)	(14		)
Impairment charges and asset write-downs⁽⁶⁾	—			—			—			(116		)
Information technology and finance transformation costs⁽⁷⁾	(24		)	(15		)	(75		)	(55		)
Other⁽⁸⁾	3			(1		)	24			(17		)
Income (loss) before income taxes	$	181		$	143		$	(137	)	$	(397	)

Hertz



	Three Months Ended September 30,						Nine Months Ended September 30,
(In millions)	2018			2017			2018			2017
Adjusted Pre-tax Income (Loss):
U.S. Rental Car	$	222		$	158		$	200		$	5
International Rental Car	133			147			201			200
All Other Operations	22			20			68			59
Total reportable segments	377			325			469			264
Corporate⁽¹⁾	(135		)	(136		)	(420		)	(367		)
Adjusted Pre-tax Income (Loss)	242			189			49			(103		)
Adjustments:
Acquisition accounting⁽²⁾	(15		)	(15		)	(46		)	(47		)
Debt-related charges⁽³⁾	(11		)	(12		)	(36		)	(33		)
Loss on extinguishment of debt⁽⁴⁾	—			—			(22		)	(8		)
Restructuring and restructuring related charges⁽⁵⁾	(12		)	(2		)	(26		)	(14		)
Impairment charges and asset write-downs⁽⁶⁾	—			—			—			(116		)
Information technology and finance transformation costs⁽⁷⁾	(24		)	(15		)	(75		)	(55		)
Other⁽⁸⁾	3			(1		)	24			(17		)
Income (loss) before income taxes	$	183		$	144		$	(132	)	$	(393	)


(1)	Represents general corporate expenses, non-vehicle interest expense, as well as other business activities.


(2)	Represents incremental expense associated with amortization of other intangible assets and depreciation of property and equipment relating to acquisition accounting.


(3)	Primarily represents debt-related charges relating to the amortization of deferred financing costs and debt discounts and premiums.

(4)

(5)


(6)	In 2017, represents a second quarter $86 million impairment of the Dollar Thrifty tradename and a first quarter impairment of $30 million related to an equity method investment.


(7)	Represents costs associated with the Company’s information technology and finance transformation programs, both of which are multi-year initiatives to upgrade and modernize the Company’s systems and processes.

(8)

Guarantor and Non-Guarantor Condensed Consolidating Financial Information - Hertz (Tables)

9 Months Ended

Sep. 30, 2018

Guarantor and Non-Guarantor Condensed Consolidating Financial Statements Disclosure [Abstract]

Condensed Balance Sheet

THE HERTZ CORPORATION

CONDENSED CONSOLIDATING BALANCE SHEET

September 30, 2018

(In millions)



	Parent (The Hertz Corporation)		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations			The Hertz Corporation & Subsidiaries
ASSETS
Cash and cash equivalents	$	271	$	7	$	483	$	—		$	761
Restricted cash and cash equivalents	90		8		167		—			265
Total cash, cash equivalents, restricted cash and restricted cash equivalents	361		15		650		—			1,026
Receivables, net of allowance	441		166		1,198		—			1,805
Due from affiliates	3,486		5,200		8,575		(17,261		)	—
Prepaid expenses and other assets	4,719		36		292		(4,056		)	991
Revenue earning vehicles, net	453		1		13,123		—			13,577
Property and equipment, net	590		62		129		—			781
Investment in subsidiaries, net	7,695		1,334		—		(9,029		)	—
Other intangible assets, net	139		3,052		6		—			3,197
Goodwill	102		943		38		—			1,083
Total assets	$	17,986	$	10,809	$	24,011	$	(30,346	)	$	22,460
LIABILITIES AND STOCKHOLDER'S EQUITY
Due to affiliates	$	10,728	$	2,270	$	4,263	$	(17,261	)	$	—
Accounts payable	430		112		462		—			1,004
Accrued liabilities	797		67		442		—			1,306
Accrued taxes, net	90		19		2,711		(2,639		)	181
Debt	4,554		—		12,604		—			17,158
Public liability and property damage	185		40		214		—			439
Deferred income taxes, net	—		1,525		1,038		(1,417		)	1,146
Total liabilities	16,784		4,033		21,734		(21,317		)	21,234
Stockholder's equity:
Total stockholder's equity attributable to Hertz	1,202		6,776		2,253		(9,029		)	1,202
Noncontrolling interest	—		—		24		—			24
Total stockholder's equity	1,202		6,776		2,277		(9,029		)	1,226
Total liabilities and stockholder's equity	$	17,986	$	10,809	$	24,011	$	(30,346	)	$	22,460

THE HERTZ CORPORATION

CONDENSED CONSOLIDATING BALANCE SHEET

December 31, 2017

(In millions)



	Parent (The Hertz Corporation)		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations			The Hertz Corporation & Subsidiaries
ASSETS
Cash and cash equivalents	$	686	$	9	$	377	$	—		$	1,072
Restricted cash and cash equivalents	225		7		200		—			432
Total cash, cash equivalents, restricted cash and restricted cash equivalents	911		16		577		—			1,504
Receivables, net of allowance	366		167		832		—			1,365
Due from affiliates	3,373		4,567		8,794		(16,734		)	—
Prepaid expenses and other assets	3,747		37		302		(3,399		)	687
Revenue earning vehicles, net	352		2		10,982		—			11,336
Property and equipment, net	639		61		140		—			840
Investment in subsidiaries, net	7,966		1,265		—		(9,231		)	—
Other intangible assets, net	141		3,091		10		—			3,242
Goodwill	102		944		38		—			1,084
Total assets	$	17,597	$	10,150	$	21,675	$	(29,364	)	$	20,058
LIABILITIES AND STOCKHOLDER'S EQUITY
Due to affiliates	$	10,368	$	2,156	$	4,210	$	(16,734	)	$	—
Accounts payable	375		92		479		—			946
Accrued liabilities	473		73		374		—			920
Accrued taxes, net	77		21		2,235		(2,173		)	160
Debt	4,619		—		10,246		—			14,865
Public liability and property damage	165		37		225		—			427
Deferred income taxes, net	—		1,451		995		(1,226		)	1,220
Total liabilities	16,077		3,830		18,764		(20,133		)	18,538
Stockholder's equity:
Total stockholder's equity	1,520		6,320		2,911		(9,231		)	1,520
Total liabilities and stockholder's equity	$	17,597	$	10,150	$	21,675	$	(29,364	)	$	20,058

Condensed Income Statement

THE HERTZ CORPORATION

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

For the Three Months Ended September 30, 2018

(In millions)



	Parent (The Hertz Corporation)			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			The Hertz Corporation & Subsidiaries
Total revenues	$	1,349		$	418		$	2,272		$	(1,281	)	$	2,758
Expenses:
Direct vehicle and operating	865			190			404			—			1,459
Depreciation of revenue earning vehicles and lease charges, net	1,200			91			662			(1,281		)	672
Selling, general and administrative	176			24			65			—			265
Interest (income) expense, net	108			(42		)	120			—			186
Other (income) expense, net	(6		)	—			(1		)	—			(7		)
Total expenses	2,343			263			1,250			(1,281		)	2,575
Income (loss) before income taxes and equity in earnings (losses) of subsidiaries	(994		)	155			1,022			—			183
Income tax (provision) benefit	270			(41		)	(271		)	—			(42		)
Equity in earnings (losses) of subsidiaries, net of tax	866			32			—			(898		)	—
Net income (loss)	142			146			751			(898		)	141
Net (income) loss attributable to noncontrolling interests	—			—			1			—			1
Net income (loss) attributable to Hertz	142			146			752			(898		)	142
Total other comprehensive income (loss), net of tax	—			2			(1		)	(1		)	—
Comprehensive income (loss) attributable to Hertz	$	142		$	148		$	751		$	(899	)	$	142

THE HERTZ CORPORATION

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

For the Three Months Ended September 30, 2017

(In millions)



	Parent (The Hertz Corporation)			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			The Hertz Corporation & Subsidiaries
Total revenues	$	1,296		$	394		$	1,861		$	(979	)	$	2,572
Expenses:
Direct vehicle and operating	772			188			388			—			1,348
Depreciation of revenue earning vehicles and lease charges, net	826			98			669			(893		)	700
Selling, general and administrative	151			9			57			—			217
Interest (income) expense, net	108			(26		)	93			—			175
Intangible asset impairments	—			—			—			—			—
Other (income) expense, net	(4		)	—			(8		)	—			(12		)
Total expenses	1,853			269			1,199			(893		)	2,428
Income (loss) before income taxes and equity in earnings (losses) of subsidiaries	(557		)	125			662			(86		)	144
Income tax (provision) benefit	188			(43		)	(195		)	—			(50		)
Equity in earnings (losses) of subsidiaries, net of tax	463			37			—			(500		)	—
Net income (loss)	94			119			467			(586		)	94
Total other comprehensive income (loss), net of tax	15			4			14			(18		)	15
Total comprehensive income (loss)	$	109		$	123		$	481		$	(604	)	$	109

THE HERTZ CORPORATION

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

For the Nine Months Ended September 30, 2018

(In millions)




	Parent (The Hertz Corporation)			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			The Hertz Corporation & Subsidiaries
Total revenues	$	3,598		$	1,105		$	5,890		$	(3,384	)	$	7,209
Expenses:
Direct vehicle and operating	2,455			544			1,044			—			4,043
Depreciation of revenue earning vehicles and lease charges, net	3,185			273			1,946			(3,384		)	2,020
Selling, general and administrative	516			53			196			—			765
Interest (income) expense, net	311			(112		)	350			—			549
Other (income) expense, net	(33		)	—			(3		)	—			(36		)
Total expenses	6,434			758			3,533			(3,384		)	7,341
Income (loss) before income taxes and equity in earnings (losses) of subsidiaries	(2,836		)	347			2,357			—			(132		)
Income tax (provision) benefit	627			(76		)	(541		)	—			10
Equity in earnings (losses) of subsidiaries, net of tax	2,088			90			—			(2,178		)	—
Net income (loss)	(121		)	361			1,816			(2,178		)	(122		)
Net (income) loss attributable to noncontrolling interests	—			—			1			—			1
Net income (loss) attributable to Hertz	(121		)	361			1,817			(2,178		)	(121		)
Total other comprehensive income (loss), net of tax	(17		)	(3		)	(18		)	21			(17		)
Comprehensive income (loss) attributable to Hertz	$	(138	)	$	358		$	1,799		$	(2,157	)	$	(138	)

THE HERTZ CORPORATION

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

For the Nine Months Ended September 30, 2017

(In millions)




	Parent (The Hertz Corporation)			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			The Hertz Corporation & Subsidiaries
Total revenues	$	3,516		$	1,055		$	5,109		$	(2,967	)	$	6,713
Expenses:
Direct vehicle and operating	2,201			538			996			—			3,735
Depreciation of revenue earning vehicles and lease charges, net	2,587			313			2,004			(2,760		)	2,144
Selling, general and administrative	457			28			176			—			661
Interest (income) expense, net	290			(73		)	244			—			461
Intangible asset impairments	—			86			—			—			86
Other (income) expense, net	30			—			(11		)	—			19
Total expenses	5,565			892			3,409			(2,760		)	7,106
Income (loss) before income taxes and equity in earnings (losses) of subsidiaries	(2,049		)	163			1,700			(207		)	(393		)
Income tax (provision) benefit	760			(57		)	(596		)	—			107
Equity in earnings (losses) of subsidiaries, net of tax	1,003			100			—			(1,103		)	—
Net income (loss)	(286		)	206			1,104			(1,310		)	(286		)
Total other comprehensive income (loss), net of tax	21			6			19			(25		)	21
Total comprehensive income (loss)	$	(265	)	$	212		$	1,123		$	(1,335	)	$	(265	)

Condensed Cash Flow Statement

THE HERTZ CORPORATION

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the Nine Months Ended September 30, 2018

(In millions)



	Parent (The Hertz Corporation)			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			The Hertz Corporation & Subsidiaries
Net cash provided by (used in) operating activities	$	187		$	7		$	3,732		$	(1,905	)	$	2,021
Cash flows from investing activities:
Revenue earning vehicles expenditures	(328		)	—			(9,748		)	—			(10,076		)
Proceeds from disposal of revenue earning vehicles	183			—			5,195			—			5,378
Capital asset expenditures, non-vehicle	(85		)	(8		)	(26		)	—			(119		)
Proceeds from property and other equipment disposed of or to be disposed of	41			—			6			—			47
Purchases of marketable securities	(60		)	—			—			—			(60		)
Sales of marketable securities	36			—			—			—			36
Other	(2		)	—			(3		)	—			(5		)
Capital contributions to subsidiaries	(2,817		)	—			—			2,817			—
Return of capital from subsidiaries	2,445			—			—			(2,445		)	—
Proceeds from/repayments of intercompany loan	—			—			78			(78		)	—
Net cash provided by (used in) investing activities	(587		)	(8		)	(4,498		)	294			(4,799		)
Cash flows from financing activities:
Proceeds from issuance of vehicle debt	1,809			—			10,062			—			11,871
Repayments of vehicle debt	(1,862		)	—			(7,663		)	—			(9,525		)
Proceeds from issuance of non-vehicle debt	387			—			—			—			387
Repayments of non-vehicle debt	(398		)	—			—			—			(398		)
Payment of financing costs	(1		)	—			(29		)	—			(30		)
Early redemption premium payment	—			—			(19		)	—			(19		)
Advances to Hertz Holdings	(7		)	—			—			—			(7		)
Contributions from noncontrolling interest owners	—			—			25			—			25
Capital contributions received from parent	—			—			2,817			(2,817		)	—
Payment of dividends and return of capital	—			—			(4,350		)	4,350			—
Proceeds from/repayments of intercompany loan	(78		)	—			—			78			—
Net cash provided by (used in) financing activities	(150		)	—			843			1,611			2,304
Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents	—			—			(4		)	—			(4		)
Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents during the period	(550		)	(1		)	73			—			(478		)
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period	911			16			577			—			1,504
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period	$	361		$	15		$	650		$	—		$	1,026

THE HERTZ CORPORATION

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the Nine Months Ended September 30, 2017

(In millions)



	Parent (The Hertz Corporation)			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			The Hertz Corporation & Subsidiaries
Net cash provided by (used in) operating activities	$	(80	)	$	17		$	3,255		$	(1,211	)	$	1,981
Cash flows from investing activities:
Revenue earning vehicles expenditures	(195		)	(5		)	(8,483		)	—			(8,683		)
Proceeds from disposal of revenue earning vehicles	123			—			5,162			—			5,285
Capital asset expenditures, non-vehicle	(82		)	(8		)	(34		)	—			(124		)
Proceeds from disposal of property and other equipment	7			—			11			—			18
Proceeds from sale of Brazil Operations, net of retained cash	—			—			94			—			94
Sales of marketable securities	—			—			9			—			9
Other	—			—			(4		)	—			(4		)
Capital contributions to subsidiaries	(2,060		)	—			—			2,060			—
Return of capital from subsidiaries	2,099			—			—			(2,099		)	—
Proceeds from/repayments of intercompany loan	—			—			80			(80		)	—
Net cash provided by (used in) investing activities	(108		)	(13		)	(3,165		)	(119		)	(3,405		)
Cash flows from financing activities:
Proceeds from issuance of vehicle debt	1,133			—			5,774			—			6,907
Repayments of vehicle debt	(1,129		)	—			(4,758		)	—			(5,887		)
Proceeds from issuance of non-vehicle debt	2,100			—			—			—			2,100
Repayments of non-vehicle debt	(986		)	—			—			—			(986		)
Payment of financing costs	(18		)	(4		)	(21		)	—			(43		)
Early redemption premium payment	(5		)	—			—			—			(5		)
Advances to Hertz Holdings	(4		)	—			—			—			(4		)
Other	(1		)	—			—			—			(1		)
Capital contributions received from parent	—			—			2,060			(2,060		)	—
Payment of dividends and return of capital	—			—			(3,310		)	3,310			—
Proceeds from/repayments of intercompany loan	(80		)	—			—			80			—
Net cash provided by (used in) financing activities	1,010			(4		)	(255		)	1,330			2,081
Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents	—			—			26			—			26
Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents during the period	822			—			(139		)	—			683
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period	510			18			566			—			1,094
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period	$	1,332		$	18		$	427		$	—		$	1,777

Basis of Presentation and Recently Issued Accounting Pronouncements (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Net income (loss)	$ 140	$ 93	$ (125)	$ (289)
Restatement Adjustment \| Other Immaterial Errors
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Net income (loss)		$ 10

Basis of Presentation and Recently Issued Accounting Pronouncements (Recent Issued Accounting Pronouncements) (Details) - USD ($)
$ / shares in Units, $ in Millions

3 Months Ended

9 Months Ended

Sep. 30, 2018

Sep. 30, 2017

Sep. 30, 2018

Sep. 30, 2017

Jan. 01, 2018

Dec. 31, 2017

$ 1,145

$ 1,169

$ 1,220

1,306

1,160

920

21,233

^[1]

21,233

^[1]

18,727

18,538

^[1]

(819)

(695)

(506)

1,227

1,331

1,520

Income Statement Related Disclosures [Abstract]

22,460

20,058

2,584

$ 2,413

6,694

$ 6,240

265

217

765

661

181

143

(137)

(397)

(41)

(50)

108

Net (income) loss attributable to noncontrolling interests

140

(125)

(289)

Basic earnings (loss) per share (in dollars per share)

$ 141

$ 93

$ (124)

$ (289)

$ 1.68

$ 1.12

$ (1.49)

$ (3.48)

Diluted earnings (loss) per share (in dollars per share)

$ 1.68

$ 1.12

$ (1.49)

$ (3.48)

Net cash provided by (used in) investing activities

$ (4,799)

$ (3,405)

Net cash provided by (used in) financing activities

2,308

2,085

Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash

(4)

Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period

1,504

1,094

Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period

$ 1,026

$ 1,777

1,026

1,777

(39)

106

(5)

1,146

1,220

1,306

920

^[2]

21,234

18,538

(1,796)

(1,486)

1,226

1,520

Income Statement Related Disclosures [Abstract]

22,460

20,058

2,584

2,413

6,694

6,240

265

217

765

661

183

144

(132)

(393)

(42)

(50)

107

Net (income) loss attributable to noncontrolling interests

141

(122)

(286)

142

(121)

(286)

Net cash provided by (used in) investing activities

(4,799)

(3,405)

Net cash provided by (used in) financing activities

2,304

2,081

Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash

(4)

Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period

1,504

1,094

Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period

1,026

1,777

1,026

1,777

(38)

The Hertz Corporation | Accounting Standards Update 2014-09

106

(5)

1,169

1,160

18,727

(1,675)

1,331

Calculated under Revenue Guidance in Effect before Topic 606

20,058

1,198

1,220

1,061

920

21,041

18,538

(627)

(506)

1,419

1,520

Income Statement Related Disclosures [Abstract]

20,058

2,591

6,700

266

766

187

(132)

(41)

Net (income) loss attributable to noncontrolling interests

146

(122)

Basic earnings (loss) per share (in dollars per share)

$ 147

$ (121)

$ 1.75

$ (1.45)

Diluted earnings (loss) per share (in dollars per share)

$ 1.75

$ (1.45)

$ (37)

Calculated under Revenue Guidance in Effect before Topic 606 | Accounting Standards Update 2014-09

101

Net cash provided by (used in) investing activities

(3,316)

Net cash provided by (used in) financing activities

1,252

Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash

Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period

816

Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period

748

Calculated under Revenue Guidance in Effect before Topic 606 | The Hertz Corporation

Income Statement Related Disclosures [Abstract]

$ 1,199

1,199

1,061

21,042

(1,604)

1,418

1,520

2,591

6,700

266

766

189

(127)

(42)

Net (income) loss attributable to noncontrolling interests

147

(119)

148

(118)

(36)

Calculated under Revenue Guidance in Effect before Topic 606 | The Hertz Corporation | Accounting Standards Update 2014-09

101

1,220

920

18,538

(1,486)

$ 20,058

Net cash provided by (used in) investing activities

(3,316)

Net cash provided by (used in) financing activities

1,248

Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash

Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period

816

Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period

748

Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09

(53)

(51)

245

240

192

189

(192)

(189)

(192)

(189)

Income Statement Related Disclosures [Abstract]

(7)

(6)

(1)

(6)

(5)

Net (income) loss attributable to noncontrolling interests

(6)

(3)

Basic earnings (loss) per share (in dollars per share)

$ (6)

$ (3)

$ (0.07)

$ (0.04)

Diluted earnings (loss) per share (in dollars per share)

$ (0.07)

$ (0.04)

Net cash provided by (used in) investing activities

(89)

Net cash provided by (used in) financing activities

833

Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash

Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period

278

Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period

1,029

$ (2)

Difference between Revenue Guidance in Effect before and after Topic 606 | The Hertz Corporation | Accounting Standards Update 2014-09

$ (53)

(53)

(51)

245

240

192

189

(192)

(189)

(192)

(189)

Income Statement Related Disclosures [Abstract]

$ 0

(7)

(6)

(1)

(6)

(5)

Net (income) loss attributable to noncontrolling interests

(6)

(3)

$ (6)

(3)

Net cash provided by (used in) investing activities

(89)

Net cash provided by (used in) financing activities

833

Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash

Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period

278

Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period

$ 1,029

1,029

(2)

$ 5

Vehicles | The Hertz Corporation

Vehicles | Calculated under Revenue Guidance in Effect before Topic 606 | Accounting Standards Update 2014-09

Vehicles | Calculated under Revenue Guidance in Effect before Topic 606 | The Hertz Corporation | Accounting Standards Update 2014-09

Vehicles | Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09

Vehicles | Difference between Revenue Guidance in Effect before and after Topic 606 | The Hertz Corporation | Accounting Standards Update 2014-09

(89)

(89)

Non-vehicle

Non-vehicle | The Hertz Corporation

Non-vehicle | Calculated under Revenue Guidance in Effect before Topic 606 | Accounting Standards Update 2014-09

Non-vehicle | Calculated under Revenue Guidance in Effect before Topic 606 | The Hertz Corporation | Accounting Standards Update 2014-09

(833)

Non-vehicle | Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09

(833)

Non-vehicle | Difference between Revenue Guidance in Effect before and after Topic 606 | The Hertz Corporation | Accounting Standards Update 2014-09

833

Reconciliation of adjusted pre-tax income to income (loss) before income taxes

$ 833

[1]

[2]

Acquisitions and Divestitures (Divestiture) (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Aug. 31, 2017
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Impairment charges and asset write-downs	$ 0	$ 116
Consideration			$ 115
Consideration, escrow			$ 13
Collaborative Arrangement, Referral and Brand Cooperation Agreement, Initial Term	20 years
Collaborative Arrangement, Referral and Brand Cooperation Agreement, Optional Extension Term	20 years
Discontinued Operations, Held-for-sale \| Other Income (Expense)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Impairment charges and asset write-downs		30
Fair Value, Measurements, Nonrecurring
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Impairment of long-lived assets held-for-use		$ 6

Revenue Earning Vehicles (Components of Revenue Earning Vehicles) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Property, Plant and Equipment [Line Items]
Revenue earning vehicles	$ 16,376		$ 16,376		$ 14,209
Less: Accumulated depreciation	(3,231)		(3,231)		(3,123)
Subtotal	13,145		13,145		11,086
Revenue earning vehicles held for sale, net	432		432		250
Total revenue earning vehicles, net	13,577		13,577		$ 11,336
Depreciation of revenue earning vehicles	619	$ 636	1,847	$ 1,902
(Gain) loss on disposal of revenue earning equipment	27	43	105	187
Rents paid for vehicles leased	26	21	68	55
Depreciation of revenue earning equipment and lease charges, net	672	700	2,020	2,144
U.S. Rental Car
Property, Plant and Equipment [Line Items]
(Gain) loss on disposal of revenue earning equipment	29	43	107	187
Other cost of services	39	36	109	99
International Rental Car
Property, Plant and Equipment [Line Items]
(Gain) loss on disposal of revenue earning equipment	$ (2)	$ 0	$ (2)	$ 0

Revenue Earning Vehicles (Depreciation Rates) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Revenue earning equipment
Depreciation rate changes	$ (33)	$ 10	$ (18)	$ 73
U.S. Rental Car
Revenue earning equipment
Depreciation rate changes	(32)	6	(20)	68
International Rental Car
Revenue earning equipment
Depreciation rate changes	(1)	4	$ 2	$ 5
Other Immaterial Error Corrections \| U.S. Rental Car
Revenue earning equipment
Depreciation rate changes	$ (30)	$ (15)

Intangible Asset Impairment (Details) - USD ($) $ in Millions	3 Months Ended			9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Jun. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Finite-Lived Intangible Assets [Line Items]
Intangible asset impairments	$ 0	$ 0		$ 0	$ 86
Trade Names \| U.S. Rental Car
Finite-Lived Intangible Assets [Line Items]
Intangible asset impairments			$ 86
Trade Names \| U.S. Rental Car \| Fair Value, Measurements, Nonrecurring
Finite-Lived Intangible Assets [Line Items]
Indefinite-lived intangible assets		$ 934			$ 934

Debt (Schedule of Debt) (Details) $ in Millions	Sep. 30, 2018 USD ($) € / $	Sep. 30, 2018 EUR (€) € / $	May 31, 2018 EUR (€)	Dec. 31, 2017 USD ($) € / $
Debt Instrument [Line Items]
Debt:	$ 17,158			$ 14,865
Total Non-Vehicle Debt
Debt Instrument [Line Items]
Unamortized Net Discount	(35)			(42)
Debt:	$ 4,421			4,434
Senior Term Loan
Debt Instrument [Line Items]
Average interest rate (as a percent)	5.00%	5.00%
Outstanding principal	$ 677			688
Senior RCF
Debt Instrument [Line Items]
Outstanding principal	$ 0			0
Senior Notes
Debt Instrument [Line Items]
Average interest rate (as a percent)	6.13%	6.13%
Outstanding principal	$ 2,500			2,500
5.875% Senior Notes due October 2020
Debt Instrument [Line Items]
Outstanding principal	$ 700			700
Interest rate	5.875%	5.875%
7.375% Senior Notes due January 2021
Debt Instrument [Line Items]
Outstanding principal	$ 500			500
Interest rate	7.375%	7.375%
6.250% Senior Notes due October 2022
Debt Instrument [Line Items]
Outstanding principal	$ 500			500
Interest rate	6.25%	6.25%
5.500% Senior Notes due October 2024
Debt Instrument [Line Items]
Outstanding principal	$ 800			800
Interest rate	5.50%	5.50%
Senior Second Priority Secured Notes
Debt Instrument [Line Items]
Average interest rate (as a percent)	7.63%	7.63%
Outstanding principal	$ 1,250			1,250
Promissory Notes
Debt Instrument [Line Items]
Average interest rate (as a percent)	7.00%	7.00%
Outstanding principal	$ 27			27
Non-Vehicle Debt
Debt Instrument [Line Items]
Average interest rate (as a percent)	3.08%	3.08%
Outstanding principal	$ 2			11
Total Vehicle Debt
Debt Instrument [Line Items]
Unamortized Net Discount	(47)			(40)
Debt:	12,737			10,431
U.S. Fleet Medium Term Notes
Debt Instrument [Line Items]
Outstanding principal	0			664
U.S. Fleet Medium Term Notes Series 2010-1 Notes
Debt Instrument [Line Items]
Outstanding principal	0			39
U.S. Fleet Medium Term Notes Series 2013-1 Notes
Debt Instrument [Line Items]
Outstanding principal	0			625
Total
Debt Instrument [Line Items]
Outstanding principal	$ 3,185			2,093
HVF II Series 2013-A
Debt Instrument [Line Items]
Average interest rate (as a percent)	3.68%	3.68%
Outstanding principal	$ 3,170			1,970
HVF II Series 2013-B
Debt Instrument [Line Items]
Average interest rate (as a percent)	3.66%	3.66%
Outstanding principal	$ 15			123
HVF II U.S. Fleet Variable Medium Term Notes
Debt Instrument [Line Items]
Outstanding principal	$ 5,260			4,125
U.S. Fleet Medium Term Notes 2015 Series 1
Debt Instrument [Line Items]
Average interest rate (as a percent)	2.93%	2.93%
Outstanding principal	$ 780			780
U.S. Fleet Medium Term Notes 2015 Series 2
Debt Instrument [Line Items]
Outstanding principal	$ 0			265
U.S. Fleet Medium Term Notes 2015 Series 3
Debt Instrument [Line Items]
Average interest rate (as a percent)	3.10%	3.10%
Outstanding principal	$ 371			371
U.S. Fleet Medium Term Notes 2016 Series 1
Debt Instrument [Line Items]
Average interest rate (as a percent)	2.89%	2.89%
Outstanding principal	$ 466			466
U.S. Fleet Medium Term Notes 2016 Series 2
Debt Instrument [Line Items]
Average interest rate (as a percent)	3.41%	3.41%
Outstanding principal	$ 595			595
U.S. Fleet Medium Term Notes 2016 Series 3
Debt Instrument [Line Items]
Average interest rate (as a percent)	2.72%	2.72%
Outstanding principal	$ 424			424
U.S. Fleet Medium Term Notes 2016 Series 4
Debt Instrument [Line Items]
Average interest rate (as a percent)	3.09%	3.09%
Outstanding principal	$ 424			424
U.S. Fleet Medium Term Notes 2017 Series 1
Debt Instrument [Line Items]
Average interest rate (as a percent)	3.38%	3.38%
Outstanding principal	$ 450			450
U.S. Fleet Medium Term Notes 2017 Series 2
Debt Instrument [Line Items]
Average interest rate (as a percent)	3.57%	3.57%
Outstanding principal	$ 350			350
U.S. Fleet Medium Term Notes 2018 Series 1
Debt Instrument [Line Items]
Average interest rate (as a percent)	3.41%	3.41%
Outstanding principal	$ 1,000			0
U.S. Fleet Medium Term Notes 2018 Series 2
Debt Instrument [Line Items]
Average interest rate (as a percent)	3.80%	3.80%
Outstanding principal	$ 200			0
U.S. Fleet Medium Term Notes 2018 Series 3
Debt Instrument [Line Items]
Average interest rate (as a percent)	4.15%	4.15%
Outstanding principal	$ 200			0
Donlen ABS Program
Debt Instrument [Line Items]
Outstanding principal	$ 170			380
HFLF Series 2013-2 Notes
Debt Instrument [Line Items]
Average interest rate (as a percent)	2.72%	2.72%
Outstanding principal	$ 170			380
HFLF Variable Funding Notes
Debt Instrument [Line Items]
Outstanding principal	$ 1,249			963
HFLF Series 2015-1
Debt Instrument [Line Items]
Average interest rate (as a percent)	3.22%	3.22%
Outstanding principal	$ 58			145
HFLF Series 2016-1
Debt Instrument [Line Items]
Average interest rate (as a percent)	3.28%	3.28%
Outstanding principal	$ 204			318
HFLF Series 2017-1
Debt Instrument [Line Items]
Average interest rate (as a percent)	2.66%	2.66%
Outstanding principal	$ 437			500
HFLF Series 2018-1
Debt Instrument [Line Items]
Average interest rate (as a percent)	2.58%	2.58%
Outstanding principal	$ 550			0
Other Fleet Debt
Debt Instrument [Line Items]
Outstanding principal	$ 2,920			2,246
U.S. Vehicle RCF
Debt Instrument [Line Items]
Average interest rate (as a percent)	4.52%	4.52%
Outstanding principal	$ 133			186
European Revolving Credit Facility
Debt Instrument [Line Items]
Average interest rate (as a percent)	2.95%	2.95%
Outstanding principal	$ 514			184
European Fleet Notes
Debt Instrument [Line Items]
Average interest rate (as a percent)	5.07%	5.07%
Outstanding principal	$ 851			$ 773
Foreign currency exchange rate (EURO to USD) \| € / $	1.17	1.17		1.19
4.375% Senior Notes due January 2019
Debt Instrument [Line Items]
Outstanding principal	$ 0			$ 505
Interest rate	4.375%	4.375%
Face Amount \| €		€ 425,000,000
4.125% Senior Notes due October 2021
Debt Instrument [Line Items]
Outstanding principal	$ 264			268
Interest rate	4.125%	4.125%
Face Amount \| €		€ 225,000,000
European Fleet Notes, 5.500%, Due March 2023
Debt Instrument [Line Items]
Outstanding principal	$ 587			0
Interest rate	5.50%	5.50%
Face Amount \| €		€ 500,000,000
European Securitization
Debt Instrument [Line Items]
Average interest rate (as a percent)	1.70%	1.70%
Outstanding principal	$ 515			367
Canadian Securitization
Debt Instrument [Line Items]
Average interest rate (as a percent)	3.27%	3.27%
Outstanding principal	$ 315			237
Australian Securitization
Debt Instrument [Line Items]
Average interest rate (as a percent)	3.56%	3.56%
Outstanding principal	$ 142			155
New Zealand RCF
Debt Instrument [Line Items]
Average interest rate (as a percent)	4.61%	4.61%
Outstanding principal	$ 40			42
UK Leveraged Financing
Debt Instrument [Line Items]
Average interest rate (as a percent)	3.08%	3.08%
Outstanding principal	$ 363			251
Face Amount \| €		€ 250,000,000	€ 287,500,000.0
Other Vehicle Debt
Debt Instrument [Line Items]
Average interest rate (as a percent)	4.01%	4.01%
Outstanding principal	$ 47			$ 51

Debt (Narrative) (Details)	1 Months Ended			3 Months Ended		9 Months Ended
Debt (Narrative) (Details)	Jun. 30, 2018 USD ($)	Mar. 31, 2018 USD ($)	Jan. 31, 2018 USD ($)	Sep. 30, 2018 USD ($)	Sep. 30, 2017 USD ($)	Sep. 30, 2018 USD ($)	Sep. 30, 2018 EUR (€)	Sep. 30, 2017 USD ($)	Sep. 30, 2018 EUR (€)	Sep. 30, 2018 CAD ($)	Jul. 31, 2018 EUR (€)	May 31, 2018 EUR (€)	May 31, 2018 CAD ($)	Dec. 31, 2017 USD ($)
Debt Instrument [Line Items]
Adjustments:				$ 181,000,000	$ 143,000,000	$ (137,000,000)		$ (397,000,000)
HFLF Variable Funding Notes
Debt Instrument [Line Items]
Outstanding principal				1,249,000,000		1,249,000,000								$ 963,000,000
European Revolving Credit Facility
Debt Instrument [Line Items]
Outstanding principal				514,000,000		514,000,000								184,000,000
European Vehicle Notes
Debt Instrument [Line Items]
Outstanding principal				851,000,000		851,000,000								773,000,000
HVF II Series 2017-A Notes And HVF II Series 2017-B Notes
Debt Instrument [Line Items]
Decrease to borrowing capacity of revolving credit facility		$ 250,000,000
HVF II Series 2013 Notes
Debt Instrument [Line Items]
Decrease to borrowing capacity of revolving credit facility		3,700,000,000
HVF II Series 2017-A
Debt Instrument [Line Items]
Decrease to borrowing capacity of revolving credit facility		$ 500,000,000
HVF II Series 2018-2 Class A, B, C and D
Debt Instrument [Line Items]
Outstanding principal				426,000,000		426,000,000
Repayments of debt	$ 26,000,000
European Securitization
Debt Instrument [Line Items]
Outstanding principal				515,000,000		515,000,000								367,000,000
UK Leveraged Financing
Debt Instrument [Line Items]
Outstanding principal				363,000,000		363,000,000								251,000,000
Face Amount \| €									€ 250,000,000			€ 287,500,000.0
UK Leveraged Financing, Due September 2018
Debt Instrument [Line Items]
Face Amount \| €											€ 300,000,000
New Zealand RCF
Debt Instrument [Line Items]
Outstanding principal				40,000,000		40,000,000								42,000,000
HFLF Series 2015-1
Debt Instrument [Line Items]
Outstanding principal				58,000,000		58,000,000								145,000,000
Canadian Securitization
Debt Instrument [Line Items]
Outstanding principal				$ 315,000,000		315,000,000								237,000,000
Senior RCF
Debt Instrument [Line Items]
Fixed charge coverage ratio, number of quarters				1 year
Senior RCF
Debt Instrument [Line Items]
Outstanding principal				$ 0		0								0
Senior Term Loan
Debt Instrument [Line Items]
Outstanding principal				677,000,000		677,000,000								688,000,000
5.500% Senior Notes due October 2024
Debt Instrument [Line Items]
Outstanding principal				$ 800,000,000		$ 800,000,000								800,000,000
Interest rate				5.50%		5.50%			5.50%	5.50%
U.S. Vehicle RCF
Debt Instrument [Line Items]
Outstanding principal				$ 133,000,000		$ 133,000,000								186,000,000
HFLF Series 2013-2 Notes
Debt Instrument [Line Items]
Outstanding principal				170,000,000		170,000,000								380,000,000
HFLF Series 2017-1
Debt Instrument [Line Items]
Outstanding principal				437,000,000		437,000,000								500,000,000
HFLF Series 2016-1
Debt Instrument [Line Items]
Outstanding principal				204,000,000		204,000,000								318,000,000
4.125% Senior Notes due October 2021
Debt Instrument [Line Items]
Outstanding principal				$ 264,000,000		$ 264,000,000								268,000,000
Interest rate				4.125%		4.125%			4.125%	4.125%
Face Amount \| €									€ 225,000,000
Senior Notes
Debt Instrument [Line Items]
Outstanding principal				$ 2,500,000,000		$ 2,500,000,000								2,500,000,000
HVF II Series 2013-A
Debt Instrument [Line Items]
Outstanding principal				3,170,000,000		3,170,000,000								1,970,000,000
HVF II Series 2013-B
Debt Instrument [Line Items]
Outstanding principal				15,000,000		15,000,000								123,000,000
HVF II Series 2018-1 Class A, B, C and D
Debt Instrument [Line Items]
Outstanding principal			$ 1,100,000,000
HVF II Series 2018-1 Class D
Debt Instrument [Line Items]
Repayments of debt			$ 58,000,000
HFLF Series 2018-1
Debt Instrument [Line Items]
Outstanding principal				550,000,000		550,000,000								0
European Fleet Notes, 5.500%, Due March 2023
Debt Instrument [Line Items]
Outstanding principal				$ 587,000,000		$ 587,000,000								0
Interest rate				5.50%		5.50%			5.50%	5.50%
Face Amount \| €									€ 500,000,000
UK Leveraged Financing, Due January 2019
Debt Instrument [Line Items]
Interest rate				4.375%		4.375%			4.375%	4.375%
Letter of Credit
Debt Instrument [Line Items]
Outstanding standby letters of credit				$ 672,000,000		$ 672,000,000
Vehicles
Debt Instrument [Line Items]
Repayments of principal in next twelve months				2,300,000,000		2,300,000,000
Repayments of debt						9,525,000,000		5,887,000,000
Proceeds from issuance of debt						11,871,000,000		6,907,000,000
Non-vehicle
Debt Instrument [Line Items]
Repayments of principal in next twelve months				16,000,000		16,000,000
Repayments of debt						398,000,000		986,000,000
Proceeds from issuance of debt						387,000,000		$ 2,100,000,000
Revolving Credit Facility \| Senior RCF
Debt Instrument [Line Items]
Outstanding standby letters of credit				360,000,000		360,000,000
Revolving Credit Facility \| European Securitization, Due October 2018
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity \| €									€ 438,000,000
Revolving Credit Facility \| European Revolving Credit Facility, Due January 2019
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity \| €									€ 235,000,000
Revolving Credit Facility \| Canadian Securitization, Due October 2018
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity													$ 410,000,000
Revolving Credit Facility \| Canadian Securitization Funding LP Series 2015-A Notes
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity										$ 350,000,000
Revolving Credit Facility \| Letter of Credit \| Senior RCF
Debt Instrument [Line Items]
Decrease to borrowing capacity of revolving credit facility	$ 302,000,000
Line of credit facility, maximum borrowing capacity				865,000,000		865,000,000
Letter of Credit
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity				400,000,000		400,000,000
Letter of Credit \| Senior RCF
Debt Instrument [Line Items]
Outstanding standby letters of credit				301,000,000		$ 301,000,000
International Fleet Financing No. 2 B.V.
Debt Instrument [Line Items]
Ownership percentage						25.00%	25.00%
VIE, total assets				776,000,000		$ 776,000,000								524,000,000
VIE, total liabilities				$ 776,000,000		$ 776,000,000								$ 524,000,000
Restricted Cash \| European Fleet Notes, 5.500%, Due March 2023
Debt Instrument [Line Items]
Proceeds from issuance of debt \| €							€ 425,000,000

Debt (Borrowing Capacity) (Details) $ in Millions	Sep. 30, 2018 USD ($)
Debt Instrument [Line Items]
Remaining capacity	$ 1,413
Availability under borrowing base limitation	512
Total Non-Vehicle Debt
Debt Instrument [Line Items]
Remaining capacity	506
Availability under borrowing base limitation	506
Senior RCF
Debt Instrument [Line Items]
Remaining capacity	505
Availability under borrowing base limitation	505
Letter of Credit Facility
Debt Instrument [Line Items]
Remaining capacity	1
Availability under borrowing base limitation	1
Total Vehicle Debt
Debt Instrument [Line Items]
Remaining capacity	907
Availability under borrowing base limitation	6
U.S. Vehicle RCF
Debt Instrument [Line Items]
Remaining capacity	0
Availability under borrowing base limitation	0
HVF II U.S. Vehicle Variable Funding Notes
Debt Instrument [Line Items]
Remaining capacity	480
Availability under borrowing base limitation	0
HFLF Variable Funding Notes
Debt Instrument [Line Items]
Remaining capacity	330
Availability under borrowing base limitation	1
European Revolving Credit Facility
Debt Instrument [Line Items]
Remaining capacity	0
Availability under borrowing base limitation	0
European Securitization
Debt Instrument [Line Items]
Remaining capacity	25
Availability under borrowing base limitation	5
Canadian Securitization
Debt Instrument [Line Items]
Remaining capacity	0
Availability under borrowing base limitation	0
Australian Securitization
Debt Instrument [Line Items]
Remaining capacity	40
Availability under borrowing base limitation	0
U.K. Financing Facility
Debt Instrument [Line Items]
Remaining capacity	32
Availability under borrowing base limitation	0
New Zealand RCF
Debt Instrument [Line Items]
Remaining capacity	0
Availability under borrowing base limitation	$ 0

Debt (Covenant Ratios) (Details)	Sep. 30, 2018
Senior Revolving Credit Facility and Letter of Credit Facility
Debt Instrument [Line Items]
Maximum consolidated leverage ratio	3.00

Revenue Disaggregated Revenue - Products and Serives and Geographical (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2018
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	$ 2,593	$ 6,726
Vehicles
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	2,502	6,478
Other Revenue
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	91	248
Licensee revenue
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	54	138
Ancillary retail vehicle sales
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	27	78
Fleet management
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	10	32
Airport
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	1,725	4,432
Off airport
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	777	2,046
U.S. Rental Car
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	1,851	4,905
U.S. Rental Car \| Vehicles
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	1,814	4,803
U.S. Rental Car \| Other Revenue
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	37	102
U.S. Rental Car \| Licensee revenue
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	10	24
U.S. Rental Car \| Ancillary retail vehicle sales
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	27	78
U.S. Rental Car \| Fleet management
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	0	0
U.S. Rental Car \| Airport
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	1,279	3,403
U.S. Rental Car \| Off airport
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	535	1,400
International Rental Car
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	732	1,789
International Rental Car \| Vehicles
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	688	1,675
International Rental Car \| Other Revenue
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	44	114
International Rental Car \| Licensee revenue
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	44	114
International Rental Car \| Ancillary retail vehicle sales
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	0	0
International Rental Car \| Fleet management
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	0	0
International Rental Car \| Airport
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	446	1,029
International Rental Car \| Off airport
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	242	646
All Other Operations
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	10	32
All Other Operations \| Vehicles
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	0	0
All Other Operations \| Other Revenue
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	10	32
All Other Operations \| Licensee revenue
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	0	0
All Other Operations \| Ancillary retail vehicle sales
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	0	0
All Other Operations \| Fleet management
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	10	32
All Other Operations \| Airport
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	0	0
All Other Operations \| Off airport
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	$ 0	$ 0

Revenue Narrative (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
Revenue Narrative (Details) - USD ($) $ in Millions	Sep. 30, 2018	Sep. 30, 2018	Jun. 30, 2018	Jan. 01, 2018
Revenue from Contract with Customer [Abstract]
Customer loyalty program point balance liability, revenue recognized	$ (9)	$ (5)
Outstanding point balance amount	271	271
Contract with customer liability	351	351	$ 412	$ 345
Loyalty points revenue recognized	$ 164	$ 129

Income Tax (Provision) Benefit (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Income Tax Contingency [Line Items]
Effective tax rate (as percent)	(23.00%)	(35.00%)	9.00%	27.00%
Income tax (provision) benefit	$ 41	$ 50	$ (12)	$ (108)
TCJA provisional amount	$ 15		$ 15
The Hertz Corporation
Income Tax Contingency [Line Items]
Effective tax rate (as percent)	(23.00%)	(35.00%)	8.00%	27.00%
Income tax (provision) benefit	$ 42	$ 50	$ (10)	$ (107)

Earnings (Loss) Per Share - Hertz Global (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Numerator:
Net income (loss) attributable to Hertz Global	$ 141	$ 93	$ (124)	$ (289)
Denominator:
Basic weighted average shares outstanding	84	83	83	83
Dilutive stock options, RSUs, PSUs and PSAs	0	0	0	0
Diluted weighted average shares outstanding	84	83	83	83
Earnings (loss) per share:
Basic earnings (loss) per share (in dollars per share)	$ 1.68	$ 1.12	$ (1.49)	$ (3.48)
Diluted earnings (loss) per share (in dollars per share)	$ 1.68	$ 1.12	$ (1.49)	$ (3.48)
Antidilutive stock options, RSUs and PSUs
Denominator:
Antidilutive stock options, RSUs, PSUs and PSAs	1	3	1	3

Fair Value Measurements (Cash and Cash Equivalents and Investments) (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017
Money market funds and time deposits
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	$ 356	$ 634
Money market funds and time deposits \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	356	634
Money market funds and time deposits \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	0	0
Money market funds and time deposits \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	0	0
Equity securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	45	0
Equity securities \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	45	0
Equity securities \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	0	0
Equity securities \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	$ 0	$ 0

Fair Value Measurements (Financial Instruments) (Details) - Fair Value, Measurements, Recurring - Level 2 - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017
Fair Value of Financial Instruments [Abstract]
Nominal Unpaid Principal Balance	$ 17,240	$ 14,947
Aggregate Fair Value	16,969	14,894
Non-Vehicle Debt
Fair Value of Financial Instruments [Abstract]
Nominal Unpaid Principal Balance	4,456	4,476
Aggregate Fair Value	4,254	4,438
Total Vehicle Debt
Fair Value of Financial Instruments [Abstract]
Nominal Unpaid Principal Balance	12,784	10,471
Aggregate Fair Value	$ 12,715	$ 10,456

Fair Value Measurements (Narrative) (Details) - USD ($) $ in Millions	1 Months Ended	3 Months Ended	6 Months Ended
	Aug. 31, 2017	Mar. 31, 2017	Jun. 30, 2017
Brazil Operations \| Fair Value, Measurements, Nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Gain (Loss) on disposal	$ 6	$ 4	$ 4

Contingencies and Off-Balance Sheet Commitments (Details) - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Public liability and property damage	$ 439	$ 427

Related Party Transactions (Details) $ in Millions	1 Months Ended	3 Months Ended		9 Months Ended
Related Party Transactions (Details) $ in Millions	May 30, 2018 USD ($)	Sep. 30, 2018 USD ($) Vehicle	Sep. 30, 2017 USD ($)	Sep. 30, 2018 USD ($) Vehicle	Sep. 30, 2017 USD ($)	Dec. 31, 2017 USD ($)	Jun. 30, 2016 USD ($)
Related Party Transaction [Line Items]
Sales of marketable securities				$ 36	$ 9
Due from related parties			$ 425		425		$ 425
Contributions from noncontrolling interest owners				25	0
Master Loan Agreement
Related Party Transaction [Line Items]
Due from related parties		$ 115		115		$ 107
Tax Related Liability
Related Party Transaction [Line Items]
Due from related parties		65		65
Mr. Icahn
Related Party Transaction [Line Items]
Purchases from related party		$ 10	$ 3	$ 27	$ 8
Mr. Icahn \| Sale of Marketable Securities [Member]
Related Party Transaction [Line Items]
Sales of marketable securities	$ 36
Mr. Icahn \| Tax Related Liability
Related Party Transaction [Line Items]
Due from related parties						$ 65
767 Auto Leasing, LLC
Related Party Transaction [Line Items]
Number of vehicles sold \| Vehicle		1,000		1,600
Amount of transaction		$ 11		$ 18
767 Auto Leasing, LLC \| Master Motor Vehicle Lease and Management Agreement
Related Party Transaction [Line Items]
Operating income or loss, percent				25.00%
767 Auto Leasing, LLC \| American
Related Party Transaction [Line Items]
Contributions from noncontrolling interest owners		$ 15		$ 25

Segment Information (Details)
$ in Millions

3 Months Ended

9 Months Ended

Sep. 30, 2018

USD ($)

Jun. 30, 2018

USD ($)

Sep. 30, 2017

USD ($)

Jun. 30, 2017

USD ($)

Mar. 31, 2017

USD ($)

Sep. 30, 2018

USD ($)

segment

Sep. 30, 2017

USD ($)

Dec. 31, 2017

USD ($)

Number of reportable segments | segment

Depreciation of revenue earning vehicles and lease charges, net

$ 2,758.0

$ 2,572.0

$ 7,209.0

$ 6,713.0

672.0

700.0

2,020.0

2,144.0

240.0

188.0

44.0

(107.0)

^[1]

22,460.0

$ 20,058.0

Intangible asset impairments

181.0

143.0

(137.0)

(397.0)

0.0

86.0

Equity method investment, other than temporary impairment

$ 30.0

Gain (Loss) on Sale of Equity Investments

21.0

3.0

Purchase accounting

Reconciliation of adjusted pre-tax income to income (loss) before income taxes

Reconciliation of adjusted pre-tax income to income (loss) before income taxes

(15.0)

(46.0)

(47.0)

Other

Loss on extinguishment of debt

(11.0)

(12.0)

(36.0)

(33.0)

Reconciliation of adjusted pre-tax income to income (loss) before income taxes

Restructuring and restructuring related charges

0.0

(22.0)

(8.0)

Reconciliation of adjusted pre-tax income to income (loss) before income taxes

Impairment charges and asset write-downs

(12.0)

(2.0)

(26.0)

(14.0)

Reconciliation of adjusted pre-tax income to income (loss) before income taxes

Finance and Information Technology Transformation Costs

0.0

(116.0)

Reconciliation of adjusted pre-tax income to income (loss) before income taxes

Reconciliation of adjusted pre-tax income to income (loss) before income taxes

(24.0)

(15.0)

(75.0)

(55.0)

Other

Reconciliation of adjusted pre-tax income to income (loss) before income taxes

3.0

(1.0)

24.0

(17.0)

Operating Segments

Operating Segments | U.S. Rental Car

377.0

325.0

469.0

264.0

Reconciliation of adjusted pre-tax income to income (loss) before income taxes

Depreciation of revenue earning vehicles and lease charges, net

1,852.0

1,685.0

4,905.0

4,557.0

414.0

455.0

1,295.0

1,478.0

222.0

158.0

200.0

5.0

Operating Segments | International Rental Car

14,495.0

12,785.0

Reconciliation of adjusted pre-tax income to income (loss) before income taxes

Depreciation of revenue earning vehicles and lease charges, net

732.0

728.0

1,789.0

1,683.0

128.0

126.0

342.0

311.0

133.0

147.0

201.0

200.0

Operating Segments | All Other Operations

5,081.0

3,971.0

Reconciliation of adjusted pre-tax income to income (loss) before income taxes

Depreciation of revenue earning vehicles and lease charges, net

174.0

159.0

515.0

473.0

130.0

119.0

383.0

355.0

22.0

20.0

68.0

59.0

Reconciliation of adjusted pre-tax income to income (loss) before income taxes

1,763.0

1,700.0

Corporate, Non-Segment

(137.0)

(425.0)

(371.0)

1,121.0

1,602.0

Reconciliation of adjusted pre-tax income to income (loss) before income taxes

Depreciation of revenue earning vehicles and lease charges, net

2,758.0

2,572.0

7,209.0

6,713.0

672.0

700.0

2,020.0

2,144.0

242.0

189.0

49.0

(103.0)

^[2]

22,460.0

$ 20,058.0

Consulting costs, legal fees and loss contingency

183.0

144.0

(132.0)

(393.0)

13.6

Intangible asset impairments

0.0

86.0

Gain (Loss) on Sale of Equity Investments

4.0

21.0

3.0

Legal settlement amount for oil spill in the Gulf of Mexico from 2010

$ 6.0

The Hertz Corporation | Purchase accounting

Reconciliation of adjusted pre-tax income to income (loss) before income taxes

The Hertz Corporation | Other

(15.0)

(46.0)

(47.0)

Reconciliation of adjusted pre-tax income to income (loss) before income taxes

The Hertz Corporation | Loss on extinguishment of debt

(11.0)

(12.0)

(36.0)

(33.0)

Reconciliation of adjusted pre-tax income to income (loss) before income taxes

The Hertz Corporation | Restructuring and restructuring related charges

0.0

$ (20.0)

0.0

(22.0)

(8.0)

Reconciliation of adjusted pre-tax income to income (loss) before income taxes

The Hertz Corporation | Impairment charges and asset write-downs

(12.0)

(2.0)

(26.0)

(14.0)

Reconciliation of adjusted pre-tax income to income (loss) before income taxes

The Hertz Corporation | Finance and Information Technology Transformation Costs

0.0

(116.0)

Reconciliation of adjusted pre-tax income to income (loss) before income taxes

The Hertz Corporation | Other

(24.0)

(15.0)

(75.0)

(55.0)

Reconciliation of adjusted pre-tax income to income (loss) before income taxes

The Hertz Corporation | Operating Segments

3.0

(1.0)

24.0

(17.0)

Reconciliation of adjusted pre-tax income to income (loss) before income taxes

The Hertz Corporation | Operating Segments | U.S. Rental Car

377.0

325.0

469.0

264.0

Reconciliation of adjusted pre-tax income to income (loss) before income taxes

The Hertz Corporation | Operating Segments | International Rental Car

222.0

158.0

200.0

5.0

Reconciliation of adjusted pre-tax income to income (loss) before income taxes

The Hertz Corporation | Operating Segments | All Other Operations

133.0

147.0

201.0

200.0

Reconciliation of adjusted pre-tax income to income (loss) before income taxes

The Hertz Corporation | Corporate, Non-Segment

22.0

20.0

68.0

59.0

Reconciliation of adjusted pre-tax income to income (loss) before income taxes

The Hertz Corporation | Segment Reconciling Items

(135.0)

(136.0)

(420.0)

(367.0)

Reconciliation of adjusted pre-tax income to income (loss) before income taxes

Product Concentration Risk | Cost of Goods, Segment | All Other Operations

$ 2.0

$ 1.0

$ 5.0

4.0

Reconciliation of adjusted pre-tax income to income (loss) before income taxes

Concentration risk, percentage (less than)

2.00%

Product Concentration Risk | Revenues | All Other Operations

Reconciliation of adjusted pre-tax income to income (loss) before income taxes

Concentration risk, percentage (less than)

2.00%

Senior Notes 4.25% Due April 2018 | The Hertz Corporation | Loss on extinguishment of debt

Reconciliation of adjusted pre-tax income to income (loss) before income taxes

Senior Revolving Credit Facility | The Hertz Corporation | Loss on extinguishment of debt

6.0

Reconciliation of adjusted pre-tax income to income (loss) before income taxes

Trade Names | U.S. Rental Car

2.0

Reconciliation of adjusted pre-tax income to income (loss) before income taxes

Intangible asset impairments

$ 86.0

BRAZIL | The Hertz Corporation | International Rental Car | Settlement

Reconciliation of adjusted pre-tax income to income (loss) before income taxes

BRAZIL | The Hertz Corporation | International Rental Car | Gain on Sale of Brazil Operations

5.0

13.0

Reconciliation of adjusted pre-tax income to income (loss) before income taxes

BRAZIL | The Hertz Corporation | International Rental Car | Labor-Related Matters

$ 6.0

Reconciliation of adjusted pre-tax income to income (loss) before income taxes

$ 6.0

[1]

[2]

Guarantor and Non-Guarantor Condensed Consolidating Financial Information - Hertz (Narrative) (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Condensed Financial Statements, Captions [Line Items]
Prepaid expenses and other assets	$ 991	$ 687
Restatement Adjustment \| Non-Guarantor Subsidiaries
Condensed Financial Statements, Captions [Line Items]
Cash used in investing activities	$ 164

Guarantor and Non-Guarantor Condensed Consolidating Financial Information - Hertz (Balance Sheet) (Details) - USD ($)
$ in Millions

Sep. 30, 2018

Jan. 01, 2018

Dec. 31, 2017

Sep. 30, 2017

Dec. 31, 2016

Jun. 30, 2016

ASSETS

$ 761

$ 1,072

Total cash, cash equivalents, restricted cash and restricted cash equivalents

265

432

1,026

1,504

$ 1,777

$ 1,094

1,805

1,365

425

$ 425

991

687

13,577

11,336

781

840

3,197

3,242

1,083

1,084

^[1]

22,460

20,058

1,004

946

1,306

$ 1,160

920

181

160

17,158

14,865

439

427

1,145

1,169

1,220

21,233

^[1]

18,727

18,538

^[1]

Equity:

1,203

1,520

1,227

1,331

1,520

22,460

$ 20,058

20,058

Eliminations

ASSETS

Total cash, cash equivalents, restricted cash and restricted cash equivalents

(17,261)

(16,734)

(4,056)

(3,399)

(9,029)

(9,231)

(30,346)

(29,364)

(17,261)

(16,734)

(2,639)

(2,173)

(1,417)

(1,226)

(21,317)

(20,133)

Equity:

(9,029)

(9,029)

(9,231)

Parent (The Hertz Corporation) | Reportable Legal Entities

(30,346)

(29,364)

ASSETS

271

686

Total cash, cash equivalents, restricted cash and restricted cash equivalents

225

361

911

1,332

510

441

366

3,486

3,373

4,719

3,747

453

352

590

639

7,695

7,966

139

141

102

17,986

17,597

10,728

10,368

430

375

797

473

4,554

4,619

185

165

16,784

16,077

Equity:

1,202

1,202

1,520

Guarantor Subsidiaries | Reportable Legal Entities

17,986

17,597

ASSETS

Total cash, cash equivalents, restricted cash and restricted cash equivalents

166

167

5,200

4,567

1,334

1,265

3,052

3,091

943

944

10,809

10,150

2,270

2,156

112

1,525

1,451

4,033

3,830

Equity:

6,776

6,776

6,320

Non-Guarantor Subsidiaries | Reportable Legal Entities

10,809

10,150

ASSETS

483

377

Total cash, cash equivalents, restricted cash and restricted cash equivalents

167

200

650

577

427

566

1,198

832

8,575

8,794

292

302

13,123

10,982

129

140

24,011

21,675

4,263

4,210

462

479

442

374

2,711

2,235

12,604

10,246

214

225

1,038

995

21,734

18,764

Equity:

2,253

2,277

2,911

24,011

21,675

ASSETS

761

1,072

Total cash, cash equivalents, restricted cash and restricted cash equivalents

265

432

1,026

1,504

$ 1,777

$ 1,094

1,805

1,365

991

687

13,577

11,336

781

840

3,197

3,242

1,083

1,084

^[2]

22,460

20,058

1,004

946

1,306

920

181

160

17,158

14,865

439

427

1,146

1,220

^[2]

21,234

18,538

Equity:

1,202

1,520

1,226

1,520