0001657853-19-000134 | 10-Q | XBRL Viewer | Hertz Global Holdings INC

$ 415

$ 1,127

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

239

283

654

1,410

1,698

1,587

Less: accumulated depreciation

926

902

Revenue earning vehicles:

Vehicles

19,687

15,703

(3,242)

(3,284)

Total revenue earning vehicles, net

16,445

12,419

772

778

1,547

3,229

3,203

1,083

^[1]

26,354

21,382

1,369

988

1,358

1,304

164

136

Operating lease liabilities

19,347

16,324

1,538

426

418

1,082

1,092

Commitments and contingencies

^[1]

25,284

20,262

Stockholders' equity:

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

Common Stock

Additional paid-in capital

2,267

2,261

Accumulated deficit

(1,017)

(909)

Accumulated other comprehensive income (loss)

(187)

(192)

Treasury stock, at cost, 2 shares and 2 shares, respectively

(100)

Total equity

964

1,061

106

1,070

1,120

26,354

21,382

Vehicles

ASSETS

207

257

434

625

705

284

14,919

11,902

Non-vehicle

ASSETS

1,264

962

664

704

4,428

4,422

ASSETS

415

1,127

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

239

283

654

1,410

1,698

1,587

Less: accumulated depreciation

925

902

Revenue earning vehicles:

Vehicles

19,687

15,703

(3,242)

(3,284)

Total revenue earning vehicles, net

16,445

12,419

772

778

1,547

3,229

3,203

1,083

^[2]

26,353

21,382

1,369

988

1,358

1,304

164

136

Operating lease liabilities

19,347

16,324

1,538

426

418

1,085

1,094

Commitments and contingencies

^[2]

25,287

20,264

Stockholders' equity:

Common Stock

Additional paid-in capital

3,195

3,187

Due from affiliate

(58)

(52)

Accumulated deficit

(1,990)

(1,884)

Accumulated other comprehensive income (loss)

(187)

(192)

Total equity

960

1,059

106

1,066

1,118

The Hertz Corporation | Vehicles

26,353

21,382

ASSETS

207

257

434

625

705

284

The Hertz Corporation | Non-vehicle

14,919

11,902

ASSETS

1,264

962

664

704

Beginning Balance (Shares) at Dec. 31, 2017

$ 4,428

$ 4,422

[1]

Hertz Global Holdings, Inc.'s consolidated total assets as of June 30, 2019 and December 31, 2018 include total assets of variable interest entities (“VIEs”) of $1.5 billion and $1.0 billion, respectively, which can only be used to settle obligations of the VIEs. Hertz Global Holdings, Inc.'s consolidated total liabilities as of June 30, 2019 and December 31, 2018 include total liabilities of VIEs of $1.4 billion and $947 million, respectively, for which the creditors of the VIEs have no recourse to Hertz Global Holdings, Inc. See "Special Purpose Entities" in Note 3, "Debt," and "767 Auto Leasing LLC" in Note 9, "Related Party Transactions," for further information.

[2]

The Hertz Corporation's consolidated total assets as of June 30, 2019 and December 31, 2018 include total assets of variable interest entities (“VIEs”) of $1.5 billion and $1.0 billion, respectively, which can only be used to settle obligations of the VIEs. The Hertz Corporation's consolidated total liabilities as of June 30, 2019 and December 31, 2018 include total liabilities of VIEs of $1.4 billion and $947 million, respectively, for which the creditors of the VIEs have no recourse to The Hertz Corporation. See "Special Purpose Entities" in Note 3, "Debt," and "767 Auto Leasing LLC" in Note 9, "Related Party Transactions," for further information.

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
Preferred Stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred Stock, shares issued	0	0
Preferred Stock, shares outstanding	0	0
Common Stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common Stock, shares issued	86,000,000	86,000,000
Common Stock, shares outstanding	84,000,000	84,000,000
Treasury Stock, shares repurchased	2,000,000	2,000,000
Non-vehicle
Receivables, allowance for doubtful accounts (in dollars)	$ 29	$ 27
The Hertz Corporation
Receivables, allowance for doubtful accounts (in dollars)	$ 29	$ 27
Common Stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common Stock, shares issued	100	100
Common Stock, shares outstanding	100	100
VIE, total assets	$ 1,500	$ 1,000
VIE, total liabilities	$ 1,400	$ 947

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Revenues:
Worldwide vehicle rental	$ 2,344	$ 2,217	$ 4,297	$ 4,111
All other operations	167	172	321	341
Revenues	2,511	2,389	4,618	4,452
Expenses:
Direct vehicle and operating	1,388	1,349	2,655	2,585
Depreciation of revenue earning vehicles and lease charges	634	687	1,226	1,348
Selling, general and administrative	258	265	490	498
Total interest expense, net	199	200	382	367
Other (income) expense, net	(12)	(26)	(31)	(29)
Total expenses	2,467	2,475	4,722	4,769
Income (loss) before income taxes	44	(86)	(104)	(317)
Income tax (provision) benefit	(4)	23	(3)	52
Net income (loss)	40	(63)	(107)	(265)
Net (income) loss attributable to noncontrolling interests	(2)	0	(1)	0
Net income (loss) attributable to Hertz and Hertz Global	$ 38	$ (63)	$ (108)	$ (265)
Weighted average shares outstanding:
Basic (in shares)	96	96	96	95
Diluted (in shares)	97	96	96	95
Earnings (loss) per share - basic and diluted:
Basic earnings (loss) per share (in dollars per share)	$ 0.40	$ (0.66)	$ (1.13)	$ (2.78)
Diluted earnings (loss) per share (in dollars per share)	$ 0.40	$ (0.66)	$ (1.13)	$ (2.78)
Vehicles
Expenses:
Total interest expense, net	$ 127	$ 127	$ 238	$ 221
Non-vehicle
Expenses:
Total interest expense, net	72	73	144	146
The Hertz Corporation
Revenues:
Worldwide vehicle rental	2,344	2,217	4,297	4,111
All other operations	167	172	321	341
Revenues	2,511	2,389	4,618	4,452
Expenses:
Direct vehicle and operating	1,388	1,349	2,655	2,585
Depreciation of revenue earning vehicles and lease charges	634	687	1,226	1,348
Selling, general and administrative	258	265	490	498
Total interest expense, net	197	198	379	364
Other (income) expense, net	(12)	(26)	(31)	(29)
Total expenses	2,465	2,473	4,719	4,766
Income (loss) before income taxes	46	(84)	(101)	(314)
Income tax (provision) benefit	(5)	23	(4)	51
Net income (loss)	41	(61)	(105)	(263)
Net (income) loss attributable to noncontrolling interests	(2)	0	(1)	0
Net income (loss) attributable to Hertz and Hertz Global	39	(61)	(106)	(263)
The Hertz Corporation \| Vehicles
Expenses:
Total interest expense, net	127	127	238	221
The Hertz Corporation \| Non-vehicle
Expenses:
Total interest expense, net	$ 70	$ 71	$ 141	$ 143

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Net income (loss)	$ 40	$ (63)	$ (107)	$ (265)
Other comprehensive income (loss):
Foreign currency translation adjustments	(5)	(19)	3	(19)
Net gain (loss) on defined benefit pension plans	1	5	0	2
Reclassification from other comprehensive income (loss) to other (income) expense for amortization of actuarial (gains) losses on defined benefit pension plans	2	0	3	0
Total other comprehensive income (loss) before income taxes	(2)	(14)	6	(17)
Income tax (provision) benefit related to reclassified amounts of net periodic costs on defined benefit pension plans	0	0	(1)	0
Total other comprehensive income (loss)	(2)	(14)	5	(17)
Total comprehensive income (loss)	38	(77)	(102)	(282)
Comprehensive (income) loss attributable to noncontrolling interests	(2)	0	(1)	0
Comprehensive income (loss) attributable to Hertz Global	36	(77)	(103)	(282)
The Hertz Corporation
Net income (loss)	41	(61)	(105)	(263)
Other comprehensive income (loss):
Foreign currency translation adjustments	(5)	(19)	3	(19)
Net gain (loss) on defined benefit pension plans	1	5	0	2
Reclassification from other comprehensive income (loss) to other (income) expense for amortization of actuarial (gains) losses on defined benefit pension plans	2	0	3	0
Total other comprehensive income (loss) before income taxes	(2)	(14)	6	(17)
Income tax (provision) benefit related to reclassified amounts of net periodic costs on defined benefit pension plans	0	0	(1)	0
Total other comprehensive income (loss)	(2)	(14)	5	(17)
Total comprehensive income (loss)	39	(75)	(100)	(280)
Comprehensive (income) loss attributable to noncontrolling interests	(2)	0	(1)	0
Comprehensive income (loss) attributable to Hertz Global	$ 37	$ (75)	$ (101)	$ (280)

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDER'S EQUITY - USD ($)
$ in Millions

Total

The Hertz Corporation

Stockholders' Equity Attributable to Hertz Global

The Hertz Corporation

Preferred Stock Shares

Common Stock Shares

The Hertz Corporation

Additional Paid-In Capital

The Hertz Corporation

Due From Affiliate

The Hertz Corporation

Accumulated Deficit

The Hertz Corporation

Accumulated Other Comprehensive Income (Loss)

The Hertz Corporation

Treasury Stock

Non- controlling Interests

The Hertz Corporation

84,000,000

100,000,000

2,000,000

Beginning Balance at Dec. 31, 2017

$ 1,520

$ 0

$ 1

$ 0

$ 2,243

$ 3,166

$ (42)

$ (506)

$ (1,486)

$ (118)

$ (100)

$ 0

(202)

(201)

(202)

(201)

(202)

(201)

(4)

Net settlement on vesting of restricted stock

(3)

(3)

Ending Balance (Shares) at Mar. 31, 2018

$ 5

84,000,000

100,000,000

2,000,000

Ending Balance at Mar. 31, 2018

1,138

1,133

$ 1

$ 0

2,250

3,176

(46)

(897)

(1,876)

(121)

$ (100)

Beginning Balance (Shares) at Dec. 31, 2017

84,000,000

100,000,000

2,000,000

Beginning Balance at Dec. 31, 2017

1,520

$ 1

$ 0

2,243

3,166

(42)

(506)

(1,486)

(118)

$ (100)

(265)

(263)

Ending Balance (Shares) at Jun. 30, 2018

(17)

84,000,000

100,000,000

2,000,000

Ending Balance at Jun. 30, 2018

1,069

1,068

1,059

1,058

$ 1

$ 0

2,253

3,179

(48)

(960)

(1,938)

(135)

$ (100)

Beginning Balance (Shares) at Mar. 31, 2018

84,000,000

100,000,000

2,000,000

Beginning Balance at Mar. 31, 2018

1,138

1,133

$ 1

$ 0

2,250

3,176

(46)

(897)

(1,876)

(121)

$ (100)

Net Income (loss), Including adjustments

(63)

(61)

(63)

(62)

(63)

(62)

^[1]

(62)

(2)

(14)

Ending Balance (Shares) at Jun. 30, 2018

84,000,000

100,000,000

2,000,000

Ending Balance at Jun. 30, 2018

1,069

1,068

1,059

1,058

$ 1

$ 0

2,253

3,179

(48)

(960)

(1,938)

(135)

$ (100)

Beginning Balance (Shares) at Dec. 31, 2018

84,000,000

100,000,000

2,000,000

Beginning Balance at Dec. 31, 2018

1,120

1,118

1,061

$ 1

2,261

(909)

(192)

$ (100)

Beginning balance (as adjusted) at Dec. 31, 2018

1,118

1,059

$ 0

3,187

(52)

(1,884)

(192)

(148)

(146)

(147)

(145)

(147)

(145)

(1)

(4)

Net settlement on vesting of restricted stock

(2)

Ending Balance (Shares) at Mar. 31, 2019

84,000,000

100,000,000

2,000,000

Ending Balance at Mar. 31, 2019

1,005

1,003

922

920

$ 1

$ 0

2,262

3,190

(56)

(1,056)

(2,029)

(185)

$ (100)

Beginning Balance (Shares) at Dec. 31, 2018

84,000,000

100,000,000

2,000,000

Beginning Balance at Dec. 31, 2018

1,120

1,118

1,061

$ 1

2,261

(909)

(192)

$ (100)

Beginning balance (as adjusted) at Dec. 31, 2018

1,118

1,059

$ 0

3,187

(52)

(1,884)

(192)

(107)

(105)

Ending Balance (Shares) at Jun. 30, 2019

84,000,000

100,000,000

2,000,000

Ending Balance at Jun. 30, 2019

1,070

1,066

964

960

$ 1

$ 0

2,267

3,195

(58)

(1,017)

(1,990)

(187)

$ (100)

106

Beginning Balance (Shares) at Mar. 31, 2019

84,000,000

100,000,000

2,000,000

Beginning Balance at Mar. 31, 2019

1,005

1,003

922

920

$ 1

$ 0

2,262

3,190

(56)

(1,056)

(2,029)

(185)

$ (100)

Net Income (loss), Including adjustments

^[2]

(2)

(2)

Ending Balance (Shares) at Jun. 30, 2019

84,000,000

100,000,000

2,000,000

Ending Balance at Jun. 30, 2019

$ 1,070

$ 1,066

$ 964

$ 960

$ 0

$ 1

$ 0

$ 2,267

$ 3,195

$ (58)

$ (1,017)

$ (1,990)

$ (187)

$ (100)

$ 106

[1]	Net income (loss) is computed independently each quarter. As a result, the quarter amounts presented herein may be rounded to agree to accumulated deficit in the unaudited condensed consolidated balance sheet.
[2]	Net income (loss) is computed independently each quarter. As a result, the quarter amounts presented herein may be rounded to agree to accumulated deficit in the unaudited condensed consolidated balance sheet.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Cash flows from operating activities:
Net income (loss)	$ (107)	$ (265)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and reserves for revenue earning vehicles	1,329	1,306
Depreciation and amortization, non-vehicle	99	113
Amortization of deferred financing costs and debt discount (premium)	26	26
Loss on extinguishment of debt	0	22
Stock-based compensation charges	8	7
Provision for receivables allowance	23	19
Deferred income taxes, net	(13)	(74)
(Gain) loss on marketable securities	(20)	(17)
Other	(22)	3
Changes in assets and liabilities:
Non-vehicle receivables	(316)	(275)
Prepaid expenses and other assets	(90)	(84)
Operating lease right-of-use assets	200
Non-vehicle accounts payable	65	154
Accrued liabilities	56	5
Accrued taxes, net	29	2
Operating lease liabilities	(211)
Public liability and property damage	(2)	0
Net cash provided by (used in) operating activities	1,054	942
Cash flows from investing activities:
Revenue earning vehicles expenditures	(8,947)	(7,610)
Proceeds from disposal of revenue earning vehicles	4,212	3,654
Capital asset expenditures, non-vehicle	(118)	(80)
Proceeds from property and other equipment disposed of or to be disposed of	21	8
Purchases of marketable securities	0	(61)
Sales of marketable securities	0	36
Other	0	(2)
Net cash provided by (used in) investing activities	(4,832)	(4,055)
Cash flows from financing activities:
Payment of financing costs	(23)	(27)
Early redemption premium payment	0	(19)
Contributions from noncontrolling interests	45	10
Other	(4)	(2)
Net cash provided by (used in) financing activities	3,023	2,540
Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents	(1)	(10)
Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents during the period	(756)	(583)
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period	1,410	1,504
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period	654	921
Cash paid during the period for:
Income taxes, net of refunds	15	10
Operating lease liabilities	282
Supplemental disclosures of non-cash flow information:
Purchases of revenue earning vehicles included in accounts payable, net of incentives	567	548
Purchases of non-vehicle capital assets included in accounts payable	46	42
Operating lease right-of-use assets obtained in exchange for lease liabilities	162	0
Vehicles
Cash flows from financing activities:
Proceeds from issuance of debt	8,267	9,414
Repayments of debt	(5,254)	(6,829)
Cash paid during the period for:
Interest, net of amounts capitalized:	213	175
Supplemental disclosures of non-cash flow information:
Sales of revenue earning vehicles included in receivables	296	204
Non-vehicle
Cash flows from financing activities:
Proceeds from issuance of debt	815	187
Repayments of debt	(823)	(194)
Cash paid during the period for:
Interest, net of amounts capitalized:	140	142
The Hertz Corporation
Cash flows from operating activities:
Net income (loss)	(105)	(263)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and reserves for revenue earning vehicles	1,329	1,306
Depreciation and amortization, non-vehicle	99	113
Amortization of deferred financing costs and debt discount (premium)	26	26
Loss on extinguishment of debt	0	22
Stock-based compensation charges	8	7
Provision for receivables allowance	23	19
Deferred income taxes, net	(12)	(73)
(Gain) loss on marketable securities	(20)	(17)
Other	(22)	3
Changes in assets and liabilities:
Non-vehicle receivables	(316)	(275)
Prepaid expenses and other assets	(90)	(84)
Operating lease right-of-use assets	200
Non-vehicle accounts payable	65	154
Accrued liabilities	56	5
Accrued taxes, net	29	2
Operating lease liabilities	(211)
Public liability and property damage	(2)	0
Net cash provided by (used in) operating activities	1,057	945
Cash flows from investing activities:
Revenue earning vehicles expenditures	(8,947)	(7,610)
Proceeds from disposal of revenue earning vehicles	4,212	3,654
Capital asset expenditures, non-vehicle	(118)	(80)
Proceeds from property and other equipment disposed of or to be disposed of	21	8
Purchases of marketable securities	0	(61)
Sales of marketable securities	0	36
Other	0	(2)
Net cash provided by (used in) investing activities	(4,832)	(4,055)
Cash flows from financing activities:
Payment of financing costs	(23)	(27)
Early redemption premium payment	0	(19)
Advances to Hertz Holdings	(6)	(6)
Contributions from noncontrolling interests		1
Other		10
Net cash provided by (used in) financing activities	3,020	2,537
Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents	(1)	(10)
Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents during the period	(756)	(583)
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period	1,410	1,504
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period	654	921
Cash paid during the period for:
Income taxes, net of refunds	15	10
Operating lease liabilities	282
Supplemental disclosures of non-cash flow information:
Purchases of revenue earning vehicles included in accounts payable, net of incentives	567	548
Purchases of non-vehicle capital assets included in accounts payable	46	42
The Hertz Corporation \| Vehicles
Cash flows from financing activities:
Proceeds from issuance of debt	8,267	9,414
Repayments of debt	(5,254)	(6,829)
Cash paid during the period for:
Interest, net of amounts capitalized:	213	175
Supplemental disclosures of non-cash flow information:
Sales of revenue earning vehicles included in receivables	296	204
Operating lease right-of-use assets obtained in exchange for lease liabilities	162	0
The Hertz Corporation \| Non-vehicle
Cash flows from financing activities:
Proceeds from issuance of debt	815	187
Repayments of debt	(823)	(194)
Cash paid during the period for:
Interest, net of amounts capitalized:	$ 140	$ 142

Background	6 Months Ended
Background	Jun. 30, 2019
Background Disclosure [Abstract]
Background	Background Hertz Global Holdings, Inc. ("Hertz Global" when including its subsidiaries and VIEs and "Hertz Holdings" excluding its subsidiaries and VIEs) was incorporated in Delaware in 2015 to serve as the top-level holding company for Rental Car Intermediate Holdings, LLC, which wholly owns The Hertz Corporation ("Hertz" and interchangeably with Hertz Global, the "Company"), Hertz Global's primary operating company. Hertz was incorporated in Delaware in 1967 and is a successor to corporations that have been engaged in the vehicle rental and leasing business since 1918. Hertz operates its vehicle rental business globally primarily through the Hertz, Dollar and Thrifty brands from company-owned, licensee and franchisee locations in the United States ("U.S."), Africa, Asia, Australia, Canada, the Caribbean, Europe, Latin America, the Middle East and New Zealand. Through its Donlen subsidiary, Hertz provides vehicle leasing and fleet management services.

Basis of Presentation and Recently Issued Accounting Pronouncements

6 Months Ended

Jun. 30, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

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 June 30, 2019 of Hertz Global and Hertz. Hertz Global consolidates Hertz for financial statement purposes, therefore, disclosures that relate to activities of Hertz also apply to Hertz Global. In the sections that combine disclosure of Hertz Global and Hertz, this report refers to actions as being actions of the Company, or Hertz Global, which is appropriate because the business is one enterprise and Hertz Global operates the business through Hertz. When appropriate, Hertz Global and Hertz are named specifically for their individual disclosures and any significant differences between the operations and results of Hertz Global and Hertz are separately disclosed and explained.

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

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

The December 31, 2018 unaudited condensed consolidated balance sheet data is derived from audited financial statements but does not include all disclosures required by U.S. GAAP. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with information included in the Company's Form 10‑K for the year ended December 31, 2018 (the "2018 Form 10‑K"), as filed with the Securities and Exchange Commission ("SEC") on February 25, 2019.

Certain prior period amounts have been reclassified to conform to current period presentation.

Principles of Consolidation

The unaudited condensed consolidated financial statements of Hertz Global include the accounts of Hertz Global and its wholly owned and majority owned U.S. and international subsidiaries, and its VIEs, as applicable. The unaudited condensed consolidated financial statements of Hertz include the accounts of Hertz, its wholly owned and majority owned U.S. and international subsidiaries, and its VIEs, as applicable. The Company consolidates a VIE when it is deemed the primary beneficiary. The Company accounts for its investment in joint ventures using the equity method when it has significant influence but not control and is not the primary beneficiary. All significant intercompany transactions have been eliminated in consolidation.

Recently Issued Accounting Pronouncements

Adopted

Leases

In February 2016, the Financial Accounting Standards Board (the "FASB") issued guidance that replaced the existing lease guidance in U.S. GAAP and in 2018 and 2019 issued amendments and updates to the new lease standard (collectively "Topic 842"). Topic 842 established a right-of-use (“ROU”) model that requires a lessee to record on the balance sheet a ROU asset and corresponding lease liability based on the present value of future lease payments. Leases are classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. Topic 842 also expanded the requirements for lessees to record leases embedded in other arrangements. Additionally, enhanced quantitative and qualitative disclosures surrounding leases are required which provide financial statement users the ability to assess the amount, timing and uncertainty of cash flows arising from leases.

The Company adopted this guidance effective January 1, 2019 using a simplified transition approach for both lessees and lessors. Prior periods have not been retrospectively adjusted and are in conformance with the then existing guidance under U.S. GAAP ("Topic 840"). The Company utilized the package of practical expedients for existing or expired contracts and did not reassess whether such contracts contain leases, the lease classification or the initial direct costs. Additionally, the Company utilized the historical lease term and did not utilize the practical expedient allowing the use of hindsight in determining the lease term and in assessing impairment of its ROU assets. To determine the present value of its lease payments as of January 1, 2019, the Company utilized the interest rate implicit in the lease agreement. If the implicit interest rate was not provided in the lease agreement, the Company utilized the Company's collateralized incremental borrowing rate as of January 1, 2019. Also, with respect to the Company's real estate leases, vehicle leases and fleet leases, the Company availed itself of the practical expedient for lessees and lessors and elected an accounting policy by class of underlying asset to combine lease and non-lease components.

As of January 1, 2019, the Company accounts for revenue earned from vehicle rentals and rental related activities wherein an identified asset is transferred to the customer and the customer has the ability to control that asset under Topic 842. Prior to the adoption of Topic 842, the Company accounted for such revenue under Revenue from Contracts with Customers ("Topic 606").

The cumulative effect of applying the new guidance to all leases as of January 1, 2019 that were not completed and with lease terms in excess of twelve months has been recorded as of the adoption date as follows:

Hertz Global



(In millions)	Operating Lease Right-of-Use Assets		Prepaid and Other Assets			Total Assets		Operating Lease Liabilities		Accrued Liabilities			Total Liabilities		Total Liabilities and Stockholders' Equity
As of December 31, 2018	$	—	$	902		$	21,382	$	—	$	1,304		$	20,262	$	21,382
Effect of Adopting Topic 842	1,585		(45		)	1,540		1,588		(48		)	1,540		1,540
As of January 1, 2019	$	1,585	$	857		$	22,922	$	1,588	$	1,256		$	21,802	$	22,922

Hertz



(In millions)	Operating Lease Right-of-Use Assets		Prepaid and Other Assets			Total Assets		Operating Lease Liabilities		Accrued Liabilities			Total Liabilities		Total Liabilities and Stockholder's Equity
As of December 31, 2018	$	—	$	902		$	21,382	$	—	$	1,304		$	20,264	$	21,382
Effect of Adopting Topic 842	1,585		(45		)	1,540		1,588		(48		)	1,540		1,540
As of January 1, 2019	$	1,585	$	857		$	22,922	$	1,588	$	1,256		$	21,804	$	22,922

Adoption of Topic 842 did not impact the Company's results of operations or cash flows. See Note 4, "Leases," for information regarding the Company’s accounting policies for leases, as well as other required disclosures under Topic 842.

Not Yet Adopted

Changes to Disclosure Requirements for Defined Benefit Plans

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

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

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

The guidance is effective for annual periods beginning after December 15, 2019, and interim periods within those annual periods using a retrospective or prospective transition method. Early adoption is permitted, including adoption in any interim period. The Company intends to adopt this guidance when effective, on January 1, 2020, using a prospective transition method and is in the process of assessing the overall impact of adopting this guidance on its financial position, results of operations and cash flows.

Debt

6 Months Ended

Jun. 30, 2019

Debt Disclosure [Abstract]

Earnings (Loss) Per Share - Hertz Global

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

Facility

Weighted Average Interest Rate
as of
June 30, 2019

Fixed or
Floating
Interest
Rate

Maturity

June 30,
2019

December 31,
2018

Non-Vehicle Debt

Senior Term Loan

5.16%

Floating

6/2023

667

674

Senior RCF

N/A

Floating

6/2021

—



Facility	Weighted Average Interest Rate as of June 30, 2019	Fixed or Floating Interest Rate	Maturity	June 30, 2019		December 31, 2018
Senior Notes⁽¹⁾	6.13%	Fixed	10/2020-10/2024	2,500		2,500
Senior Second Priority Secured Notes	7.63%	Fixed	6/2022	1,250		1,250
Promissory Notes	7.00%	Fixed	1/2028	27		27
Other Non-Vehicle Debt	6.92%	Fixed	Various	13		4
Unamortized Debt Issuance Costs and Net (Discount) Premium				(29	)	(33	)
Total Non-Vehicle Debt				4,428		4,422
Vehicle Debt
HVF II U.S. ABS Program
HVF II U.S. Vehicle Variable Funding Notes
HVF II Series 2013-A⁽²⁾	3.71%	Floating	3/2021	4,104		2,940
HVF II Series 2019-A⁽²⁾	N/A	Floating	10/2019	—		—
				4,104		2,940
HVF II U.S. Vehicle Medium Term Notes
HVF II Series 2015-1⁽²⁾	2.93%	Fixed	3/2020	780		780
HVF II Series 2015-3⁽²⁾	3.10%	Fixed	9/2020	371		371
HVF II Series 2016-1⁽²⁾	N/A	N/A	N/A	—		466
HVF II Series 2016-2⁽²⁾	3.41%	Fixed	3/2021	595		595
HVF II Series 2016-3⁽²⁾	2.72%	Fixed	7/2019	424		424
HVF II Series 2016-4⁽²⁾	3.09%	Fixed	7/2021	424		424
HVF II Series 2017-1⁽²⁾	3.38%	Fixed	10/2020	450		450
HVF II Series 2017-2⁽²⁾	3.57%	Fixed	10/2022	350		350
HVF II Series 2018-1⁽²⁾	3.41%	Fixed	2/2023	1,000		1,000
HVF II Series 2018-2⁽²⁾	3.80%	Fixed	6/2021	200		200
HVF II Series 2018-3⁽²⁾	4.15%	Fixed	7/2023	200		200
HVF II Series 2019-1⁽²⁾	3.85%	Fixed	3/2022	700		—
HVF II Series 2019-2⁽²⁾	3.51%	Fixed	5/2024	750		—
				6,244		5,260
Donlen ABS Program
HFLF Variable Funding Notes
HFLF Series 2013-2⁽²⁾	3.20%	Floating	3/2021	64		320
				64		320
HFLF Medium Term Notes
HFLF Series 2015-1⁽³⁾	N/A	N/A	N/A	—		33
HFLF Series 2016-1⁽³⁾	4.04%	Both	7/2019-1/2020	99		171
HFLF Series 2017-1⁽³⁾	2.86%	Both	7/2019-3/2021	308		397
HFLF Series 2018-1⁽³⁾	3.25%	Both	7/2019-6/2021	550		550
HFLF Series 2019-1⁽³⁾	2.85%	Both	2/2020-11/2022	650		—
				1,607		1,151



Facility	Weighted Average Interest Rate as of June 30, 2019	Fixed or Floating Interest Rate	Maturity	June 30, 2019			December 31, 2018
Vehicle Debt - Other
U.S. Vehicle RCF	4.90%	Floating	6/2021	146			146
European Vehicle Notes⁽⁴⁾	5.07%	Fixed	10/2021-3/2023	825			829
European ABS⁽²⁾	1.75%	Floating	10/2020	1,026			600
Canadian Securitization⁽²⁾	3.25%	Floating	10/2019-3/2021	335			220
Australian Securitization⁽²⁾	3.09%	Floating	3/2020	151			155
New Zealand RCF	4.40%	Floating	3/2020	37			40
U.K. Financing Facility	3.07%	Floating	7/2019-5/2022	393			242
Other Vehicle Debt	3.96%	Floating	7/2019-4/2023	37			42
				2,950			2,274
Unamortized Debt Issuance Costs and Net (Discount) Premium				(50		)	(43		)
Total Vehicle Debt				14,919			11,902
Total Debt				$	19,347		$	16,324

N/A - Not applicable


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



(In millions)	Outstanding Principal
Senior Notes	June 30, 2019		December 31, 2018
5.875% Senior Notes due October 2020	$	700	$	700
7.375% Senior Notes due January 2021	500		500
6.250% Senior Notes due October 2022	500		500
5.500% Senior Notes due October 2024	800		800
	$	2,500	$	2,500

(2)

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

(3)

In the case of the Hertz Fleet Lease Funding LP ("HFLF") Medium Term Notes, such notes are repayable from cash flows derived from third-party leases comprising the underlying HFLF collateral pool. The initial maturity date referenced for each series of HFLF Medium Term Notes represents the end of the revolving period for such series, at which time the related notes begin to amortize monthly by an amount equal to the lease collections payable to that series. To the extent the revolving period already has ended, the initial maturity date reflected is July 2019. The second maturity date referenced for each series of HFLF Medium Term Notes represents the date by which Hertz and the investors in the related series expect such series of notes to be repaid in full, which is based upon various assumptions made at the time of pricing of such notes, including the contractual amortization of the underlying leases as well as the assumed rate of prepayments of such leases. Such maturity reference is to the “expected final maturity date” as opposed to the subsequent “legal final maturity date.” The legal final maturity date is the date on which the relevant indebtedness is legally due and payable. Although the underlying lease cash flows that support the repayment of the HFLF Medium Term Notes may vary, the cash flows generally are expected to approximate a straight-line amortization of the related notes from the initial maturity date through the expected final maturity date.

(4)

References to the "European Vehicle Notes" include the series of Hertz Holdings Netherlands B.V.'s, an indirect wholly owned subsidiary of Hertz organized under the laws of the Netherlands (“HHN BV”), unsecured senior notes (converted from Euros to U.S. dollars at a rate of 1.14 to 1 as of June 30, 2019 and December 31, 2018) set forth in the table below. Outstanding principal amounts for each such series of the European Vehicle Notes is also specified below:



(In millions)	Outstanding Principal
European Vehicle Notes	June 30, 2019		December 31, 2018
4.125% Senior Notes due October 2021	$	256	$	257
5.500% Senior Notes due March 2023	569		572
	$	825	$	829

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.

In July 2019, Hertz provided conditional notices to the registered holders of its outstanding 5.875% Senior Notes due 2020 (the “2020 Notes”) and 7.375% Senior Notes due 2021 (the "2021 Notes") of its election to redeem in full all of the outstanding 2020 Notes and 2021 Notes pursuant to the requirements of the indentures governing the 2020 Notes and 2021 Notes on the redemption date, as further described in Note 12, "Subsequent Events." Excluding the completion of the aforementioned activity, as of June 30, 2019, approximately $2.7 billion of vehicle debt and $20 million of non-vehicle debt is due to mature between July 1, 2019 and June 30, 2020. The Company has reviewed its debt facilities and determined that it is probable that the Company will be able, and has the intent, to refinance these facilities at such times as the Company determines appropriate prior to their respective maturities.

Non-Vehicle Debt

Senior Notes

See Note 12, "Subsequent Events" regarding transactions occurring subsequent to June 30, 2019.

Vehicle Debt

HVF II U.S. Vehicle Variable Funding Notes

HVF II Series 2013-A Notes: In February 2019, HVF II increased the commitments under the HVF II Series 2013-A Notes by $400 million.

In May 2019, HVF II increased the commitments under the HVF II Series 2013-A Notes by $40 million.

HVF II Series 2019-A Notes: In February 2019, HVF II issued the Series 2019-A Variable Funding Rental Car Asset Backed Notes in an aggregate maximum principal amount of $500 million.

HVF II U.S. Vehicle Medium Term Notes

HVF II Series 2019-1 Notes: In February 2019, HVF II issued the Series 2019-1 Rental Car Asset Backed Notes, Class A, Class B, Class C and Class D in an aggregate principal amount of $745 million. An affiliate of HVF II purchased the Class D Notes of such series at the time of issuance, and as a result, approximately $45 million of the aggregate principal amount is eliminated in consolidation. There is subordination within the HVF II Series 2019-1 Notes based on class.

HVF II Series 2019-2 Notes: In May 2019, HVF II issued the Series 2019-2 Rental Car Asset Backed Notes, Class A, Class B, Class C and Class D in an aggregate principal amount of $799 million. An affiliate of HVF II purchased the Class D Notes of such series at the time of issuance, and as a result, approximately $49 million of the aggregate

principal amount is eliminated in consolidation. There is subordination within the HVF II Series 2019-2 Notes based on class.

HFLF Medium Term Notes

HFLF Series 2019-1 Notes: In May 2019, HFLF issued the Series 2019-1 Asset Backed Notes, Class A, Class B, Class C, Class D and Class E in an aggregate principal amount of $650 million. The HFLF Series 2019-1 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.

Canadian Securitization

In April 2019, TCL Funding Limited Partnership ("Funding LP"), a bankruptcy remote, indirect, wholly owned, special purpose subsidiary of Hertz, amended its supplemental indenture for its Series 2015-A Variable Funding Rental Car Asset Backed Notes (the "Funding LP Series 2015-A Notes") to provide for incremental seasonal capacity (subject to borrowing base availability) of up to CAD$90 million from June 2019 to October 2019. Following the expiration of the seasonal commitment period, aggregate maximum borrowings available under the Funding LP Series 2015-A Notes will revert to CAD$350 million (subject to borrowing base availability). Additionally, the Canadian Securitization was amended to extend the maturity of the aggregate maximum borrowings of CAD$350 million to March 2021.

U.K. Financing Facility

In May 2019, 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 £325 million during the peak rental season, for a seasonal commitment period through October 2019. Following the expiration of the seasonal commitment period, aggregate maximum borrowings available under the U.K. Financing Facility will revert to £250 million (subject to asset availability). Additionally, the U.K. Financing Facility was amended to extend the maturity of the aggregate maximum borrowings of £250 million to March 2021.

Borrowing Capacity and Availability

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

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

The following facilities were available to the Company as of June 30, 2019 and are presented net of any outstanding letters of credit:



(In millions)	Remaining Capacity		Availability Under Borrowing Base Limitation
Non-Vehicle Debt
Senior RCF	$	397	$	397
Letter of Credit Facility	4		4
Total Non-Vehicle Debt	401		401
Vehicle Debt
U.S. Vehicle RCF	—		—
HVF II U.S. Vehicle Variable Funding Notes	501		—
HFLF Variable Funding Notes	436		15
European ABS	112		—
Canadian Securitization	—		—
Australian Securitization	23		—
U.K. Financing Facility	19		—
New Zealand RCF	3		—
Total Vehicle Debt	1,094		15
Total	$	1,495	$	416

Letters of Credit

As of June 30, 2019, there were outstanding standby letters of credit totaling $773 million. Such letters of credit have been issued primarily to support the Company's insurance programs, vehicle rental concessions and leaseholds as well as to provide credit enhancement for its asset-backed securitization facilities. Of this amount, $465 million was issued under the Senior RCF and $301 million was issued under the Letter of Credit Facility. As of June 30, 2019, none of the issued letters of credit have been drawn upon.

Special Purpose Entities

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

The Company has a 25% ownership interest in International Fleet Financing II ("IFF No. 2"), whose sole purpose is to provide commitments to lend in various currencies subject to borrowing bases comprised of revenue earning vehicles and related assets of certain of Hertz International, Ltd.'s subsidiaries. IFF No. 2 is a VIE and the Company is the primary beneficiary, therefore, the assets, liabilities, and results of operations of IFF No. 2 are included in the Company's unaudited condensed consolidated financial statements. As of June 30, 2019 and December 31, 2018, IFF No. 2 had total assets of $1.3 billion and $946 million, respectively, primarily comprised of loans receivable, and total liabilities of $1.3 billion and $946 million, respectively, primarily comprised of debt.

Covenant Compliance

The financial covenant provides that Hertz’s consolidated first lien net leverage ratio, as defined in the credit agreements governing the Senior RCF and the Letter of Credit Facility, as of the last day of any fiscal quarter may not exceed a ratio of 3.00 to 1.00 (the "Covenant Leverage Ratio"). As of June 30, 2019, Hertz was in compliance with the Covenant Leverage Ratio.

Leases

6 Months Ended

Jun. 30, 2019

Leases [Abstract]

Leases

As disclosed in the Leases section of Note 2, “Basis of Presentation and Recently Issued Accounting Pronouncements” ("Note 2"), the Company adopted Topic 842 in accordance with the effective date on January 1, 2019. Note 2 includes disclosures regarding the Company’s method of adoption and the impact upon adoption to its financial position, results of operations and cash flows.

The Company enters into agreements as a lessor under which it rents vehicles and leases fleets to customers. The Company enters into agreements as a lessee to rent real estate, vehicles and other equipment and to conduct its vehicle rental operations under concession agreements. If any of the following criteria is met, the Company classifies the lease as a financing lease (as a lessee) or as a direct financing or sales-type lease (as a lessor):


•	The lease transfers ownership of the underlying asset to the lessee by the end of the lease term;


•	The lease grants the lessee an option to purchase the underlying asset that the Company is reasonably certain to exercise;


•	The lease term is for 75% or more of the remaining economic life of the underlying asset, unless the commencement date falls within the last 25% of the economic life of the underlying asset;


•	The present value of the sum of the lease payments equals or exceeds 90% of the fair value of the underlying asset; or


•	The underlying asset is of such a specialized nature that it is expected to have no alternative use to the lessor at the end of the lease term.

Leases that do not meet any of the above criteria are accounted for as operating leases.

The Company combines lease and non-lease components in its contracts under Topic 842.

The following further describes the Company's leasing transactions.

Lessor

The Company's operating leases for vehicle rentals have rental periods that are typically short term in nature (e.g., daily or weekly) and can generally be extended for up to one month or terminated at the customer's discretion. Rental charges are computed on a limited or unlimited mileage rate, or on a time rate plus a mileage charge. In connection with the vehicle rental, the Company offers supplemental equipment rentals (e.g., child seats and ski racks) and issues loyalty points to customers enrolled in its Hertz Gold Plus Rewards program, which are deemed lease components. The Company also offers value-added services in connection with the vehicle rental, which are deemed non-lease components, such as loss or collision damage waiver, theft protection, liability and personal accident/effects insurance coverage, premium emergency roadside service and satellite radio. Additionally, the Company charges for variable services primarily consisting of tolls and refueling charges incurred during the rental period, and for fees associated with the early or late termination of the vehicle lease. The Company mitigates residual value risk of its revenue earning vehicles by utilizing manufacturer repurchase and guaranteed depreciation programs, using sophisticated vehicle diagnostic and repair equipment to maintain the condition of its vehicles, and through periodic reviews of vehicle depreciation rates based on management's ongoing assessment of present and estimated future market conditions.

The Company's operating leases for fleets have lease periods that are typically for twelve months, after which the lease converts to a month-to-month lease, allowing the vehicle to be surrendered any time thereafter. The Company's fleet leases contain a terminal rental adjustment clause ("TRAC") where, upon sale of the vehicle following the termination of the lease, a TRAC adjustment may result through which the lessee is credited or charged with the gain or loss on the vehicle. Such TRAC adjustments are considered variable charges.

The following table summarizes the amount of operating lease income and other income included in total revenues in the accompanying condensed consolidated statements of operations for the three and six months ended June 30, 2019:



(In millions)	Three Months Ended June 30, 2019		Six Months Ended June 30, 2019
Operating lease income from vehicle rentals	$	2,208	$	4,041
Operating lease income from fleet leasing	168		326
Variable operating lease income	43		77
Revenue accounted for under Topic 842	2,419		4,444
Revenue accounted for under Topic 606	92		174
Total revenues	$	2,511	$	4,618

Lessee

As a lessee, the Company has the following types of operating leases:


•	Concession agreements which grant the Company the right to conduct its vehicle rental operations at airports, hotels and train stations and to use building space such as terminal counters and parking garages;


•	Real estate leases for its off airport vehicle rental locations and other premises;


•	Revenue earning vehicle leases; and


•	Other equipment leases.

The Company's lease terms generally range from one month to thirty-five years and a number of agreements contain escalation clauses, which increase the payment obligation based on a fixed or variable rate, and renewal options. The length of renewals vary and may result in different payment terms. Payment terms are based on fixed rates explicit in the lease, including guaranteed minimums, and/or variable rates based on:


•	Operating expenses, such as common area charges, real estate taxes and insurance;


•	A percentage of revenues or sales arising at the relevant premises; and/or


•	Periodic inflation adjustments.

The Company recognizes a ROU asset and lease liability in its accompanying condensed consolidated balance sheets for leases with a term greater than twelve months. Options to extend or terminate a lease are included in the Company's ROU asset and lease liability when it is reasonably certain that such options will be exercised. The Company does not recognize ROU assets or lease liabilities for short-term leases (i.e., those with a term of twelve months or less) and recognizes lease expense on a straight-line basis over the lease term.

To determine the present value of its lease payments, the Company utilizes the interest rate implicit in the lease agreement. If the implicit interest rate was not provided in the lease agreement, the Company utilizes the Company's collateralized incremental borrowing rate as of the beginning of the reporting period or the commencement date of the lease, whichever is later.

The following table summarizes the amount of lease costs incurred by the Company:



(In millions)	Three Months Ended June 30, 2019		Six Months Ended June 30, 2019		Year Ended December 31, 2018
Minimum fixed lease costs⁽¹⁾:
Short-term lease costs	$	32	$	62	N/A
Other operating lease costs	135		269		N/A
Total	$	167	$	331	$	577
Variable lease costs	83		146		438
Total lease costs	$	250	$	477	$	1,015

⁽¹⁾ Topic 842, which was adopted on January 1, 2019, requires the Company to disclose the short term portion of minimum fixed lease costs. For the year ended December 31, 2018, under the then existing guidance in Topic 840, the Company was only required to disclose minimum fixed costs in total.

The following summarizes the weighted average remaining lease term and weighted average discount rate for the Company's operating leases as a lessee:



	As of June 30, 2019
Weighted average remaining lease term (in years)	9
Weighted average discount rate	10.9	%

The following table summarizes the Company's minimum fixed lease obligations under existing agreements as a lessee, excluding variable concession obligations and short-term leases, as of June 30, 2019:



(In millions)
July 1, 2019 - June 30, 2020	$	465
July 1, 2020 - June 30, 2021	385
July 1, 2021 - June 30, 2022	311
July 1, 2022 - June 30, 2023	231
July 1, 2023 - June 30, 2024	174
After June 30, 2024	964
Total lease payments	2,530
Interest	(992		)
Operating lease liabilities at June 30, 2019	$	1,538

Leases


•	The lease transfers ownership of the underlying asset to the lessee by the end of the lease term;


•	The lease grants the lessee an option to purchase the underlying asset that the Company is reasonably certain to exercise;


•	The lease term is for 75% or more of the remaining economic life of the underlying asset, unless the commencement date falls within the last 25% of the economic life of the underlying asset;


•	The present value of the sum of the lease payments equals or exceeds 90% of the fair value of the underlying asset; or


•	The underlying asset is of such a specialized nature that it is expected to have no alternative use to the lessor at the end of the lease term.

Leases that do not meet any of the above criteria are accounted for as operating leases.

The Company combines lease and non-lease components in its contracts under Topic 842.

The following further describes the Company's leasing transactions.

Lessor



(In millions)	Three Months Ended June 30, 2019		Six Months Ended June 30, 2019
Operating lease income from vehicle rentals	$	2,208	$	4,041
Operating lease income from fleet leasing	168		326
Variable operating lease income	43		77
Revenue accounted for under Topic 842	2,419		4,444
Revenue accounted for under Topic 606	92		174
Total revenues	$	2,511	$	4,618

Lessee

As a lessee, the Company has the following types of operating leases:


•	Concession agreements which grant the Company the right to conduct its vehicle rental operations at airports, hotels and train stations and to use building space such as terminal counters and parking garages;


•	Real estate leases for its off airport vehicle rental locations and other premises;


•	Revenue earning vehicle leases; and


•	Other equipment leases.


•	Operating expenses, such as common area charges, real estate taxes and insurance;


•	A percentage of revenues or sales arising at the relevant premises; and/or


•	Periodic inflation adjustments.

The following table summarizes the amount of lease costs incurred by the Company:



(In millions)	Three Months Ended June 30, 2019		Six Months Ended June 30, 2019		Year Ended December 31, 2018
Minimum fixed lease costs⁽¹⁾:
Short-term lease costs	$	32	$	62	N/A
Other operating lease costs	135		269		N/A
Total	$	167	$	331	$	577
Variable lease costs	83		146		438
Total lease costs	$	250	$	477	$	1,015

The following summarizes the weighted average remaining lease term and weighted average discount rate for the Company's operating leases as a lessee:



	As of June 30, 2019
Weighted average remaining lease term (in years)	9
Weighted average discount rate	10.9	%



(In millions)
July 1, 2019 - June 30, 2020	$	465
July 1, 2020 - June 30, 2021	385
July 1, 2021 - June 30, 2022	311
July 1, 2022 - June 30, 2023	231
July 1, 2023 - June 30, 2024	174
After June 30, 2024	964
Total lease payments	2,530
Interest	(992		)
Operating lease liabilities at June 30, 2019	$	1,538

Income Tax (Provision) Benefit	6 Months Ended
Income Tax (Provision) Benefit	Jun. 30, 2019
Income Tax Disclosure [Abstract]
Income Tax (Provision) Benefit	Income Tax (Provision) Benefit Hertz Global The effective tax rate for the three months ended June 30, 2019 and 2018 is (9)% and 27%, respectively. The effective tax rate for the six months ended June 30, 2019 and 2018 is (3)% and 16%, respectively. The Company recorded a tax provision of $4 million and $3 million for the three and six months ended June 30, 2019, respectively, compared to a tax benefit of $23 million and $52 million for the three and six months ended June 30, 2018, respectively. The effective income tax rate and related tax benefit are lower for the three and six months ended June 30, 2019 driven by overall improvement in results from operations, primarily due to lower losses in the U.S. where an income tax benefit was recognized, and the composition of earnings by jurisdiction. Hertz The effective tax rate for the three months ended June 30, 2019 and 2018 is (11)% and 27%, respectively. The effective tax rate for the six months ended June 30, 2019 and 2018 is (4)% and 16%, respectively. The Company recorded a tax provision of $5 million and $4 million for the three and six months ended June 30, 2019, respectively, compared to a tax benefit of $23 million and $51 million for the three and six months ended June 30, 2018, respectively. The effective income tax rate and related tax benefit are lower for the three and six months ended June 30, 2019 driven by overall improvement in results from operations, primarily due to lower losses in the U.S. where an income tax benefit was recognized, and the composition of earnings by jurisdiction.

Earnings (Loss) Per Share - Hertz Global

6 Months Ended

Jun. 30, 2019

Earnings Per Share [Abstract]

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.

Basic weighted average shares outstanding and weighted average shares used to calculate diluted earnings (loss) per share for the three and six months ended June 30, 2018 have been adjusted to give effect to the rights offering described in Note 12,"Subsequent Events." For the three and six months ended June 30, 2019, the basic weighted average shares outstanding and weighted average shares used to calculate diluted earnings (loss) per share also are adjusted for the rights offering.

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



	Three Months Ended June 30,						Six Months Ended June 30,
(In millions, except per share data)	2019			2018			2019			2018
Basic and diluted earnings (loss) per share:
Numerator:
Net income (loss)	$	40		$	(63	)	$	(107	)	$	(265	)
Net (income) loss attributable to noncontrolling interests	(2		)	—			(1		)	—
Net income (loss) attributable to Hertz Global	$	38		$	(63	)	$	(108	)	$	(265	)
Denominator:
Unadjusted basic weighted average shares outstanding	84			84			84			83
Rights offering adjustment	12			12			12			12
Basic weighted average shares outstanding	96			96			96			95
Dilutive stock options, RSUs and PSUs	1			—			—			—
Weighted average shares used to calculate diluted earnings (loss) per share	97			96			96			95
Antidilutive stock options, RSUs, PSUs and PSAs	1			3			2			3
Earnings (loss) per share:
Basic earnings (loss) per share	$	0.40		$	(0.66	)	$	(1.13	)	$	(2.78	)
Diluted earnings (loss) per share	$	0.40		$	(0.66	)	$	(1.13	)	$	(2.78	)

Fair Value Measurements

6 Months Ended

Jun. 30, 2019

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:



	June 30, 2019								December 31, 2018
(In millions)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Money market funds and time deposits	$	202	$	—	$	—	$	202	$	701	$	—	$	—	$	701
Equity securities	64		—		—		64		44		—		—		44

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 June 30, 2019				As of December 31, 2018
(In millions)	Nominal Unpaid Principal Balance		Aggregate Fair Value		Nominal Unpaid Principal Balance		Aggregate Fair Value
Non-Vehicle Debt	$	4,457	$	4,458	$	4,455	$	4,011
Vehicle Debt	14,969		15,080		11,945		11,891
Total	$	19,426	$	19,538	$	16,400	$	15,902

- 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	6 Months Ended
Contingencies and Off-Balance Sheet Commitments	Jun. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
Contingencies and Off-Balance Sheet Commitments	Contingencies and Off-Balance Sheet Commitments Legal Proceedings Public Liability and Property Damage The Company is currently a defendant in numerous actions and has received numerous claims on which actions have not yet commenced for public liability and property damage arising from the operation of motor vehicles rented from the Company. The obligation for public liability and property damage on self-insured U.S. and international vehicles, as stated in the accompanying unaudited condensed consolidated balance sheets, represents an estimate for both reported accident claims not yet paid and claims incurred but not yet reported. The related liabilities are recorded on 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 June 30, 2019 and December 31, 2018, the Company's liability recorded for public liability and property damage matters is $426 million and $418 million, respectively. The Company believes that its analysis is based on the most relevant information available, combined with reasonable assumptions, and that the Company may prudently rely on this information to determine the estimated liability. The liability is subject to significant uncertainties. The adequacy of the liability reserve is regularly monitored based on evolving accident claim history and insurance related state legislation changes. If the Company's estimates change or if actual results differ from these assumptions, the amount of the recorded liability is adjusted to reflect these results. Loss Contingencies From time to time the Company is a party to various legal proceedings, typically involving operational issues common to the vehicle rental business, including claims by employees and former employees and governmental investigations. The Company has summarized below the most significant legal proceedings to which the Company was and/or is a party during the six months ended June 30, 2019 or the period after June 30, 2019, but before the filing of this Quarterly Report on Form 10‑Q. Governmental Investigations - The Company previously identified certain activities in Brazil that raised issues under the Foreign Corrupt Practices Act (the "FCPA") and other federal and local laws, which the Company self-reported to appropriate government entities. The matters associated with the FCPA and other federal matters have been resolved without further action by the applicable U.S. government entities. The Company is continuing its cooperation with respect to matters under local Brazilian laws. The Company has accrued a loss contingency with respect to the ongoing Brazil-related matters that is not material. In re Hertz Global Holdings, Inc. Securities Litigation - In November 2013, a purported shareholder class action, Pedro Ramirez, Jr. v. Hertz Global Holdings, Inc., et al., was commenced in the U.S. District Court for the District of New Jersey naming Old Hertz Holdings and certain of its officers as defendants and alleging violations of the federal securities laws. The complaint alleged that Old Hertz Holdings made material misrepresentations and/or omissions of material fact in certain of its public disclosures in violation of Section 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended, and Rule 10b-5 promulgated thereunder. The complaint sought an unspecified amount of monetary damages on behalf of the purported class and an award of costs and expenses, including counsel fees and expert fees. The complaint, as amended, was dismissed with prejudice on April 27, 2017 and on September 20, 2018, the Third Circuit affirmed the dismissal of the complaint with prejudice. On February 5, 2019, the plaintiffs filed a motion asking the federal district court to exercise its discretion and allow the plaintiffs to reinstate their claims to include additional allegations from the administrative order agreed to by the SEC and the Company in December 2018. The motion has been fully briefed and is pending before the federal district court. In addition to the matters described above, the Company maintains an internal compliance program through which it from time to time identifies other potential violations of laws and regulations applicable to the Company. When the Company identifies such matters, the Company conducts an internal investigation and otherwise cooperates with governmental authorities, as appropriate. The Company has established reserves for matters where the Company believes that losses are probable and can be reasonably estimated. Other than the aggregate reserve established for claims for public liability and property damage, none of those reserves are material. For matters, including certain of those described above, where the Company has not established a reserve, the ultimate outcome or resolution cannot be predicted at this time, or the amount of ultimate loss, if any, cannot be reasonably estimated. These matters are subject to many uncertainties and the outcome of the individual litigated matters is not predictable with assurance. It is possible that certain of the actions, claims, inquiries or proceedings, including those discussed above, could be decided unfavorably to the Company or any of its subsidiaries involved. Accordingly, it is possible that an adverse outcome from such a proceeding could exceed the amount accrued in an amount that could be material to the accompanying consolidated financial condition, results of operations or cash flows in any particular reporting period. Other Proceedings Litigation Against Former Executives - On March 25, 2019, the Company filed a petition against Mark Frissora, Elyse Douglas and John Jeffrey Zimmerman, all former senior executive officers of the former Hertz Global Holdings, Inc. ("Old Hertz Holdings"), in the U.S. District Court for the District of New Jersey alleging four causes of action for breach of contract, with a fifth cause of action seeking a declaratory judgment denying the defendants' entitlement to advances of fees and expenses under the Company's indemnification bylaws. On March 28, 2019, the Company filed a petition against Scott Sider, a former senior executive of Old Hertz Holdings, in the Circuit Court of the Twentieth Judicial Circuit in Lee County, Florida alleging three causes of action for breach of contract, with a fourth cause of action seeking a declaratory judgment denying the defendants' entitlement to advances of fees and expenses under the Company's indemnification bylaws. The Company is seeking repayment of incentive-based compensation received by the defendants in connection with the restatements included in the Old Hertz Holdings Form 10-K for the year ended December 31, 2014 and related accounting for prior periods. The Company is also seeking recovery for the costs of the SEC investigation that resulted in an administrative order on December 31, 2018 with respect to events generally involving the restatements included in Old Hertz Holdings Form 10-K for the year ended December 31, 2014 and other damages resulting from the necessity of the restatements. The Company is pursuing these legal proceedings in accordance with its clawback policy and contractual rights. After the defendants in the New Jersey litigation filed motions to dismiss, the Company filed a first amended complaint. Scott Sider similarly filed a motion to dismiss and the venue of the petition against Scott Sider has been moved to the Twentieth Judicial Circuit for the State of Florida in Collier County. Pursuant to the agreements governing the separation of Herc Holdings from Hertz Global that occurred on June 30, 2016, Herc Holdings is entitled to 15% of the net proceeds of any such repayment or recovery. Indemnification Obligations In the ordinary course of business, the Company has executed contracts involving indemnification obligations customary in the relevant industry and indemnifications specific to a transaction such as the sale of a business. These indemnification obligations might include claims relating to the following: environmental matters; intellectual property rights; governmental regulations and employment-related matters; customer, supplier and other commercial contractual relationships; and financial matters. Specifically, the Company has indemnified various parties for the costs associated with remediating numerous hazardous substance storage, recycling or disposal sites in many states and, in some instances, for natural resource damages. The amount of any such expenses or related natural resource damages for which the Company may be held responsible could be substantial. In addition, Hertz entered into customary indemnification agreements with Hertz Holdings and certain of the Company's stockholders and their affiliates pursuant to which Hertz Holdings and Hertz will indemnify those entities and their respective affiliates, directors, officers, partners, members, employees, agents, representatives and controlling persons, against certain liabilities arising out of performance of a consulting agreement with Hertz Holdings and each of such entities and certain other claims and liabilities, including liabilities arising out of financing arrangements or securities offerings. The Company has entered into customary indemnification agreements with each of its directors and certain of its officers. Performance under these indemnification obligations would generally be triggered by a breach of terms of the contract or by a third-party claim. In connection with the Spin-Off, the Company executed an agreement with Herc Holdings that contains mutual indemnification clauses and a customary indemnification provision with respect to liability arising out of or resulting from assumed legal matters. The Company regularly evaluates the probability of having to incur costs associated with these indemnification obligations and has accrued for expected losses that are probable and estimable.

Related Party Transactions	6 Months Ended
Related Party Transactions	Jun. 30, 2019
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions Agreements with the Icahn Group In the normal course of business, the Company purchases goods and services and leases property from entities controlled by Carl C. Icahn and his affiliates, including The Pep Boys - Manny, Moe & Jack (collectively, the "Icahn Group"). During the three months ended June 30, 2019 and 2018, the Company purchased approximately $12 million and $11 million, respectively, worth of goods and services from these related parties. During the six months ended June 30, 2019 and 2018, the Company purchased approximately $24 million and $17 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 and Agreements between Hertz Holdings and Hertz In June 2018, Hertz entered into a master loan agreement with Hertz Holdings for a facility size of $425 million with an expiration in June 2019 (the "2018 Master Loan"). The interest rate is based on the U.S. Dollar LIBOR rate plus a margin. In June 2019, upon expiration of the 2018 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 2020 (the "2019 Master Loan") where amounts outstanding under the 2018 Master Loan were transferred to the 2019 Master Loan. The interest rate is based on the U.S. Dollar LIBOR rate plus a margin. As of June 30, 2019 and December 31, 2018, there was $123 million and $117 million, respectively, outstanding under the 2019 Master Loan representing advances and any accrued but unpaid interest. Additionally, Hertz has a loan due to an affiliate in the amount of $65 million as of June 30, 2019 and December 31, 2018, which represents a tax-related liability to Hertz Holdings. The net impact of the above amounts are included in stockholder's equity in the accompanying unaudited condensed consolidated balance sheets of Hertz. 767 Auto Leasing LLC In January 2018, Hertz entered into a Master Motor Vehicle Lease and Management Agreement (the “767 Lease Agreement”) pursuant to which Hertz granted 767 Auto Leasing LLC (“767”), an entity affiliated with the Icahn Group, the option to acquire certain vehicles from Hertz at rates aligned with the rates at which Hertz sells vehicles to third parties. Hertz leases the vehicles purchased by 767 under the 767 Lease Agreement or from third parties, under a mutually developed fleet plan and Hertz manages, services, repairs, sells and maintains those leased vehicles on behalf of 767. Hertz rents the leased vehicles to drivers of transportation network companies ("TNC"), including Lyft, Inc. drivers, from rental counters within locations leased or owned by affiliates of 767, including locations operated under a master lease agreement with The Pep Boys - Manny, Joe & Jack. The 767 Lease Agreement has an initial term of 18 months and is subject to automatic six month renewals thereafter, unless terminated by either party (with or without cause) prior to the start of any such six month renewal. 767’s payment obligations under the 767 Lease Agreement are guaranteed by American Entertainment Properties Corp. ("American"), an entity affiliated with the Icahn Group. During the three and six months ended June 30, 2019, American contributed $20 million and $45 million, respectively to 767 along with certain services. The Company is entitled to 25% of the profit from the rental of the leased vehicles, as specified in the 767 Lease Agreement, which is variable and based primarily on the rental revenue, less certain vehicle related costs, such as depreciation, licensing and maintenance expenses. The Company has determined that it is the primary beneficiary of 767 due to its power to direct the activities of 767 that most significantly impact 767's economic performance and the Company's obligation to absorb 25% of 767's gains/losses. Accordingly, 767 is consolidated by the Company as a VIE.

Segment Information

6 Months Ended

Jun. 30, 2019

Segment Reporting [Abstract]

Segment Information

The Company’s chief operating decision maker assesses performance and allocates resources based upon the financial information for the Company’s operating segments. The Company aggregates certain of its operating segments into its reportable segments. The Company has identified three reportable segments, which are organized based on the products and services provided by its operating segments and the geographic areas in which its operating segments conduct business, as follows:


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


•	International Rental Car ("International RAC") - rental and leasing of vehicles (cars, vans, crossovers and light trucks), as well as sales of value-added services, internationally and consists of the Company's Europe and Other International operating segments, which are aggregated into a reportable segment based primarily upon

similar economic characteristics, products and services, customers, delivery methods and general regulatory environments;


•	All Other Operations - primarily consists of the Company's Donlen business, which provides vehicle leasing and fleet management services, together with other business activities which represent less than 1% of revenues and expenses of the segment.

Effective during the three months ended June 30, 2019, the Company changed its segment measure of profitability for its reportable segments to Adjusted EBITDA, as shown in the Adjusted EBITDA reconciliation tables below. This measure better aligns with the way the Company reviews its overall vehicle rental and leasing business and determines management incentive compensation. Prior to the three months ended June 30, 2019, the Company’s segment measure of profitability was Adjusted Pre-tax Income (Loss) which included non-vehicle depreciation and amortization, net non-vehicle debt interest and certain other items. For comparability purposes, the Company has revised the 2018 segment results to reflect the new segment measure of profitability.

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

The following tables provide significant statement of operations and balance sheet information by segment for each of Hertz Global and Hertz, including Adjusted EBITDA, the measure used to determine segment profitability.



	Three Months Ended June 30,						Six Months Ended June 30,
(In millions)	2019			2018			2019			2018
Revenues
U.S. Rental Car	$	1,784		$	1,628		$	3,304		$	3,054
International Rental Car	560			589			993			1,057
All Other Operations	167			172			321			341
Total Hertz Global and Hertz	$	2,511		$	2,389		$	4,618		$	4,452
Depreciation of revenue earning vehicles and lease charges
U.S. Rental Car	$	411		$	447		$	797		$	881
International Rental Car	106			112			203			214
All Other Operations	117			128			226			253
Total Hertz Global and Hertz	$	634		$	687		$	1,226		$	1,348
Adjusted EBITDA
U.S. Rental Car	$	156		$	18		$	163		$	(30	)
International Rental Car	56			81			42			81
All Other Operations	24			21			45			41
Corporate	(29		)	(27		)	(47		)	(59		)
Total Hertz Global and Hertz	$	207		$	93		$	203		$	33



(In millions)	June 30, 2019			December 31, 2018
Total assets
U.S. Rental Car	$	17,775		$	13,983
International Rental Car	5,470			4,057
All Other Operations	2,059			1,843
Corporate	1,050			1,499
Total Hertz Global	26,354			21,382
Corporate - Hertz	(1		)	—
Hertz	$	26,353		$	21,382

Reconciliations of Adjusted EBITDA by segment to the Company's total amounts are summarized below.

Hertz Global



	Three Months Ended June 30,						Six Months Ended June 30,
(In millions)	2019			2018			2019			2018
Adjusted EBITDA:
U.S. Rental Car	$	156		$	18		$	163		$	(30	)
International Rental Car	56			81			42			81
All Other Operations	24			21			45			41
Total reportable segments	236			120			250			92
Corporate⁽¹⁾	(29		)	(27		)	(47		)	(59		)
Total Hertz Global	207			93			203			33
Adjustments:
Non-vehicle depreciation and amortization	(51		)	(56		)	(99		)	(113		)
Non-vehicle debt interest, net of interest income	(72		)	(73		)	(144		)	(146		)
Vehicle debt-related charges⁽²⁾	(9		)	(9		)	(19		)	(19		)
Loss on extinguishment of vehicle debt⁽³⁾	—			(20		)	—			(22		)
Restructuring and restructuring related charges⁽⁴⁾	(4		)	(10		)	(10		)	(13		)
Information technology and finance transformation costs⁽⁵⁾	(38		)	(29		)	(60		)	(51		)
Other items⁽⁶⁾	11			18			25			14
Income (loss) before income taxes	$	44		$	(86	)	$	(104	)	$	(317	)

Hertz



	Three Months Ended June 30,						Six Months Ended June 30,
(In millions)	2019			2018			2019			2018
Adjusted EBITDA:
U.S. Rental Car	$	156		$	18		$	163		$	(30	)
International Rental Car	56			81			42			81
All Other Operations	24			21			45			41
Total reportable segments	236			120			250			92
Corporate⁽¹⁾	(29		)	(27		)	(47		)	(59		)
Total Hertz	207			93			203			33
Adjustments:
Non-vehicle depreciation and amortization	(51		)	(56		)	(99		)	(113		)
Non-vehicle debt interest, net of interest income	(70		)	(71		)	(141		)	(143		)
Vehicle debt-related charges⁽²⁾	(9		)	(9		)	(19		)	(19		)
Loss on extinguishment of vehicle debt⁽³⁾	—			(20		)	—			(22		)
Restructuring and restructuring related charges⁽⁴⁾	(4		)	(10		)	(10		)	(13		)
Information technology and finance transformation costs⁽⁵⁾	(38		)	(29		)	(60		)	(51		)
Other items⁽⁶⁾	11			18			25			14
Income (loss) before income taxes	$	46		$	(84	)	$	(101	)	$	(314	)


(1)	Represents other reconciling items primarily consisting of general corporate expenses, non-vehicle interest expense, as well as other business activities.


(2)	Represents vehicle debt-related charges relating to the amortization of deferred financing costs and debt discounts and premiums.


(3)	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.

(4)

Represents charges incurred under restructuring actions as defined in U.S. GAAP, excluding impairments and asset write-downs. Also includes restructuring related charges such as incremental costs incurred directly supporting business transformation initiatives. Such costs include transition costs incurred in connection with business process outsourcing arrangements and incremental costs incurred to facilitate business process re-engineering initiatives that involve significant organization redesign and extensive operational process changes. In 2018, also includes consulting costs, legal fees, and other expenses related to the previously disclosed accounting review and investigation.


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

(6)

Represents miscellaneous items, including non-cash stock-based compensation charges, and amounts attributable to noncontrolling interests. In 2019, includes a $20 million gain on marketable securities, of which $9 million was recorded during the second quarter of 2019, and a $12 million gain on the sale of non-vehicle capital assets, of which $4 million was recorded in the second quarter of 2019. In 2018, includes a $17 million gain on marketable securities and a $6 million legal settlement received in the second quarter related to an oil spill in the Gulf of Mexico in 2010.

Guarantor and Non-Guarantor Condensed Consolidating Financial Information - Hertz

6 Months Ended

Jun. 30, 2019

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

Guarantor and Non-Guarantor Condensed Consolidating Financial Information - Hertz

The following tables present the Condensed Consolidating Balance Sheets as of June 30, 2019 and December 31, 2018, the Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) for the three and six months ended June 30, 2019 and 2018 and the Condensed Consolidating Statements of Cash Flows for the six months ended June 30, 2019 and 2018 of (a) The Hertz Corporation, ("Parent”); (b) the Parent's subsidiaries that guarantee the Senior Notes issued by the Parent ("Guarantor Subsidiaries"); (c) the Parent's subsidiaries that do not guarantee the Senior Notes issued by the Parent ("Non-Guarantor Subsidiaries"); (d) elimination entries necessary to consolidate the Parent with the Guarantor Subsidiaries and Non-Guarantor Subsidiaries ("Eliminations"); and (e) Hertz on a consolidated basis.

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

THE HERTZ CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATING BALANCE SHEET

June 30, 2019

(In millions)



	Parent (The Hertz Corporation)		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations			The Hertz Corporation & Subsidiaries
ASSETS
Cash and cash equivalents	$	140	$	4	$	271	$	—		$	415
Restricted cash and cash equivalents	76		7		156		—			239
Total cash, cash equivalents, restricted cash and restricted cash equivalents	216		11		427		—			654
Receivables, net of allowance	450		187		1,061		—			1,698
Due from affiliates	3,460		4,333		7,687		(15,480		)	—
Prepaid expenses and other assets	4,995		29		290		(4,389		)	925
Revenue earning vehicles, net	431		—		16,014		—			16,445
Property and equipment, net	610		65		97		—			772
Operating lease right-of-use assets	1,005		173		369		—			1,547
Investment in subsidiaries, net	7,770		1,599		—		(9,369		)	—
Intangible assets, net	212		3,013		4		—			3,229
Goodwill	102		943		38		—			1,083
Total assets	$	19,251	$	10,353	$	25,987	$	(29,238	)	$	26,353
LIABILITIES AND STOCKHOLDER'S EQUITY
Due to affiliates	$	11,203	$	1,132	$	3,145	$	(15,480	)	$	—
Accounts payable	416		114		839		—			1,369
Accrued liabilities	824		55		479		—			1,358
Accrued taxes, net	89		19		2,479		(2,423		)	164
Debt	4,574		—		14,773		—			19,347
Operating lease liabilities	996		172		370		—			1,538
Public liability and property damage	189		39		198		—			426
Deferred income taxes, net	—		1,733		1,318		(1,966		)	1,085
Total liabilities	18,291		3,264		23,601		(19,869		)	25,287
Stockholder's equity:
Total stockholder's equity attributable to Hertz	960		7,089		2,280		(9,369		)	960
Noncontrolling interests	—		—		106		—			106
Total stockholder's equity	960		7,089		2,386		(9,369		)	1,066
Total liabilities and stockholder's equity	$	19,251	$	10,353	$	25,987	$	(29,238	)	$	26,353

THE HERTZ CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATING BALANCE SHEET

December 31, 2018

(In millions)



	Parent (The Hertz Corporation)		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations			The Hertz Corporation & Subsidiaries
ASSETS
Cash and cash equivalents	$	576	$	3	$	548	$	—		$	1,127
Restricted cash and cash equivalents	137		8		138		—			283
Total cash, cash equivalents, restricted cash and restricted cash equivalents	713		11		686		—			1,410
Receivables, net of allowance	421		174		992		—			1,587
Due from affiliates	3,522		5,312		9,101		(17,935		)	—
Prepaid expenses and other assets	4,863		34		269		(4,264		)	902
Revenue earning vehicles, net	421		1		11,997		—			12,419
Property and equipment, net	590		64		124		—			778
Investment in subsidiaries, net	7,648		1,526		—		(9,174		)	—
Intangible assets, net	160		3,039		4		—			3,203
Goodwill	102		943		38		—			1,083
Total assets	$	18,440	$	11,104	$	23,211	$	(31,373	)	$	21,382
LIABILITIES AND STOCKHOLDER'S EQUITY
Due to affiliates	$	11,351	$	2,306	$	4,278	$	(17,935	)	$	—
Accounts payable	388		97		503		—			988
Accrued liabilities	823		69		412		—			1,304
Accrued taxes, net	67		15		2,359		(2,305		)	136
Debt	4,567		—		11,757		—			16,324
Public liability and property damage	185		41		192		—			418
Deferred income taxes, net	—		1,729		1,324		(1,959		)	1,094
Total liabilities	17,381		4,257		20,825		(22,199		)	20,264
Stockholder's equity:
Total stockholder's equity attributable to Hertz	1,059		6,847		2,327		(9,174		)	1,059
Noncontrolling interests	—		—		59		—			59
Total stockholder's equity	1,059		6,847		2,386		(9,174		)	1,118
Total liabilities and stockholder's equity	$	18,440	$	11,104	$	23,211	$	(31,373	)	$	21,382

THE HERTZ CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

For the Three Months Ended June 30, 2019

(In millions)



	Parent (The Hertz Corporation)			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			The Hertz Corporation & Subsidiaries
Total revenues	$	1,294		$	397		$	2,457		$	(1,637	)	$	2,511
Expenses:
Direct vehicle and operating	727			304			357			—			1,388
Depreciation of revenue earning vehicles and lease charges	1,585			88			598			(1,637		)	634
Selling, general and administrative	148			50			60			—			258
Interest (income) expense, net	108			(48		)	137			—			197
Other (income) expense, net	(12		)	—			—			—			(12		)
Total expenses	2,556			394			1,152			(1,637		)	2,465
Income (loss) before income taxes and equity in earnings (losses) of subsidiaries	(1,262		)	3			1,305			—			46
Income tax (provision) benefit	62			(1		)	(66		)	—			(5		)
Equity in earnings (losses) of subsidiaries, net of tax	1,239			33			—			(1,272		)	—
Net income (loss)	39			35			1,239			(1,272		)	41
Net (income) loss attributable to noncontrolling interests	—			—			(2		)	—			(2		)
Net income (loss) attributable to Hertz	39			35			1,237			(1,272		)	39
Total other comprehensive income (loss), net of tax	(2		)	2			(3		)	1			(2		)
Comprehensive income (loss) attributable to Hertz	$	37		$	37		$	1,234		$	(1,271	)	$	37

For the Three Months Ended June 30, 2018

(In millions)



	Parent (The Hertz Corporation)			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			The Hertz Corporation & Subsidiaries
Total revenues	$	1,193		$	368		$	2,129		$	(1,301	)	$	2,389
Expenses:
Direct vehicle and operating	839			182			328			—			1,349
Depreciation of revenue earning vehicles and lease charges	1,220			98			670			(1,301		)	687
Selling, general and administrative	179			16			70			—			265
Interest (income) expense, net	100			(37		)	135			—			198
Other (income) expense, net	(25		)	—			(1		)	—			(26		)
Total expenses	2,313			259			1,202			(1,301		)	2,473
Income (loss) before income taxes and equity in earnings (losses) of subsidiaries	(1,120		)	109			927			—			(84		)
Income tax (provision) benefit	235			(21		)	(191		)	—			23
Equity in earnings (losses) of subsidiaries, net of tax	824			34			—			(858		)	—
Net income (loss)	(61		)	122			736			(858		)	(61		)
Total other comprehensive income (loss), net of tax	(14		)	(3		)	(14		)	17			(14		)
Comprehensive income (loss)	$	(75	)	$	119		$	722		$	(841	)	$	(75	)

THE HERTZ CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the Six Months Ended June 30, 2019

(In millions)



	Parent (The Hertz Corporation)			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			The Hertz Corporation & Subsidiaries
Net cash provided by (used in) operating activities	$	336		$	4		$	2,871		$	(2,154	)	$	1,057
Cash flows from investing activities:
Revenue earning vehicles expenditures	(272		)	—			(8,675		)	—			(8,947		)
Proceeds from disposal of revenue earning vehicles	131			—			4,081			—			4,212
Capital asset expenditures, non-vehicle	(102		)	(4		)	(12		)	—			(118		)
Proceeds from property and other equipment disposed of or to be disposed of	19			—			2			—			21
Capital contributions to subsidiaries	(711		)	—			—			711			—
Return of capital from subsidiaries	442			—			—			(442		)	—
Proceeds from/repayments of intercompany loan	—			—			325			(325		)	—
Net cash provided by (used in) investing activities	(493		)	(4		)	(4,279		)	(56		)	(4,832		)
Cash flows from financing activities:
Proceeds from issuance of vehicle debt	550			—			7,717			—			8,267
Repayments of vehicle debt	(550		)	—			(4,704		)	—			(5,254		)
Proceeds from issuance of non-vehicle debt	815			—			—			—			815
Repayments of non-vehicle debt	(823		)	—			—			—			(823		)
Payment of financing costs	—			—			(23		)	—			(23		)
Advances to Hertz Holdings	(6		)	—			—			—			(6		)
Contributions from noncontrolling interests	—			—			45			—			45
Other	(1		)	—			—			—			(1		)
Capital contributions received from parent	—			—			711			(711		)	—
Payment of dividends and return of capital	—			—			(2,596		)	2,596			—
Proceeds from/repayments of intercompany loan	(325		)	—			—			325			—
Net cash provided by (used in) financing activities	(340		)	—			1,150			2,210			3,020
Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents	—			—			(1		)	—			(1		)
Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents during the period	(497		)	—			(259		)	—			(756		)
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period	713			11			686			—			1,410
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period	$	216		$	11		$	427		$	—		$	654

THE HERTZ CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the Six Months Ended June 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	$	(34	)	$	5		$	2,093		$	(1,119	)	$	945
Cash flows from investing activities:
Revenue earning vehicles expenditures	(213		)	—			(7,397		)	—			(7,610		)
Proceeds from disposal of revenue earning vehicles	96			—			3,558			—			3,654
Capital asset expenditures, non-vehicle	(54		)	(6		)	(20		)	—			(80		)
Proceeds from property and other equipment disposed of or to be disposed of	3			—			5			—			8
Purchases of marketable securities	(60		)	—			(1		)	—			(61		)
Sales of marketable securities	36			—			—			—			36
Other	—			—			(2		)	—			(2		)
Capital contributions to subsidiaries	(1,978		)	—			—			1,978			—
Return of capital from subsidiaries	1,900			—			—			(1,900		)	—
Proceeds from/repayments of intercompany loan	—			—			76			(76		)	—
Net cash provided by (used in) investing activities	(270		)	(6		)	(3,781		)	2			(4,055		)
Cash flows from financing activities:
Proceeds from issuance of vehicle debt	1,172			—			8,242			—			9,414
Repayments of vehicle debt	(1,226		)	—			(5,603		)	—			(6,829		)
Proceeds from issuance of non-vehicle debt	187			—			—			—			187
Repayments of non-vehicle debt	(194		)	—			—			—			(194		)
Payment of financing costs	(1		)	—			(26		)	—			(27		)
Early redemption premium payment	—			—			(19		)	—			(19		)
Advances to Hertz Holdings	(6		)	—			—			—			(6		)
Contributions from noncontrolling interests	—			—			10			—			10
Other	1			—			—			—			1
Capital contributions received from parent	—			—			1,978			(1,978		)	—
Payment of dividends and return of capital	—			—			(3,019		)	3,019			—
Proceeds from/repayments of intercompany loan	(76		)	—			—			76			—
Net cash provided by (used in) financing activities	(143		)	—			1,563			1,117			2,537
Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents	—			—			(10		)	—			(10		)
Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents during the period	(447		)	(1		)	(135		)	—			(583		)
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	$	464		$	15		$	442		$	—		$	921

Subsequent Events	6 Months Ended
Subsequent Events	Jun. 30, 2019
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events Rights Offering In June 2019, Hertz Global filed a prospectus supplement to its Registration Statement on Form S-3 declared effective by the SEC on June 12, 2019 for a rights offering to raise gross proceeds of approximately $750 million, providing for the issuance of up to an aggregate of 57,915,055 new shares of Hertz Global common stock (the "rights offering"). Under the terms of the rights offering, each stockholder of Hertz Global was eligible to receive one transferable subscription right ("right") for each share of common stock held as of 5:00 p.m., Eastern Time, on June 24, 2019 (the "record date"). Each right entitled the holder to purchase 0.688285 shares of common stock (the "basic subscription right") at a price of $12.95 per whole share of common stock (the "subscription price"). The rights offering also entitled rights holders who fully exercised their basic subscription rights to subscribe for additional shares of Hertz Global's common stock that remain unsubscribed as a result of any unexercised basic subscription rights (the “over-subscription right”). The rights offering expired at 5:00 p.m., Eastern Time, on July 12, 2019. Upon closing in July 2019, the rights offering was fully subscribed resulting in Hertz Global selling 57,915,055 shares of its common stock at the subscription price for gross proceeds of $750 million. Pursuant to the terms of the rights offering, 55,816,783 shares of common stock were purchased under the basic subscription right and 2,098,272 shares of common stock were purchased under the over-subscription right. Senior Notes In July 2019, Hertz provided conditional notices of full redemption to the registered holders of its 2020 Notes and 2021 Notes. The redemptions of the 2020 Notes and 2021 Notes are each subject to the satisfaction of specified conditions precedent set forth in the applicable notice of conditional redemption, on terms and conditions satisfactory in all respects to Hertz. The anticipated redemption date is August 11, 2019 or, if the conditions precedent are not satisfied on or prior to August 11, 2019, such later date (but not later than September 10, 2019) as such conditions precedent are so satisfied. The redemption price for the 2020 Notes and 2021 notes, respectively, will be equal to 100% of the outstanding principal amount of the 2020 Notes and 2021 Notes, plus accrued but unpaid interest thereon to the date of redemption. In August 2019, Hertz issued $500 million in aggregate principal amount of 7.125% Senior Notes due 2026 (the "2026 Notes"). The Company intends to utilize the proceeds from the issuance of the 2026 Notes, together with net proceeds from the rights offering described above, to redeem the 2020 Notes and 2021 Notes.

Basis of Presentation and Recently Issued Accounting Pronouncements (Policies)

6 Months Ended

Jun. 30, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Principles of Consolidation

Recently Issued Accounting Pronouncements

Adopted

Leases

Hertz Global



(In millions)	Operating Lease Right-of-Use Assets		Prepaid and Other Assets			Total Assets		Operating Lease Liabilities		Accrued Liabilities			Total Liabilities		Total Liabilities and Stockholders' Equity
As of December 31, 2018	$	—	$	902		$	21,382	$	—	$	1,304		$	20,262	$	21,382
Effect of Adopting Topic 842	1,585		(45		)	1,540		1,588		(48		)	1,540		1,540
As of January 1, 2019	$	1,585	$	857		$	22,922	$	1,588	$	1,256		$	21,802	$	22,922

Hertz



(In millions)	Operating Lease Right-of-Use Assets		Prepaid and Other Assets			Total Assets		Operating Lease Liabilities		Accrued Liabilities			Total Liabilities		Total Liabilities and Stockholder's Equity
As of December 31, 2018	$	—	$	902		$	21,382	$	—	$	1,304		$	20,264	$	21,382
Effect of Adopting Topic 842	1,585		(45		)	1,540		1,588		(48		)	1,540		1,540
As of January 1, 2019	$	1,585	$	857		$	22,922	$	1,588	$	1,256		$	21,804	$	22,922

Not Yet Adopted

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)

6 Months Ended

Jun. 30, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

Hertz Global



(In millions)	Operating Lease Right-of-Use Assets		Prepaid and Other Assets			Total Assets		Operating Lease Liabilities		Accrued Liabilities			Total Liabilities		Total Liabilities and Stockholders' Equity
As of December 31, 2018	$	—	$	902		$	21,382	$	—	$	1,304		$	20,262	$	21,382
Effect of Adopting Topic 842	1,585		(45		)	1,540		1,588		(48		)	1,540		1,540
As of January 1, 2019	$	1,585	$	857		$	22,922	$	1,588	$	1,256		$	21,802	$	22,922

Hertz



(In millions)	Operating Lease Right-of-Use Assets		Prepaid and Other Assets			Total Assets		Operating Lease Liabilities		Accrued Liabilities			Total Liabilities		Total Liabilities and Stockholder's Equity
As of December 31, 2018	$	—	$	902		$	21,382	$	—	$	1,304		$	20,264	$	21,382
Effect of Adopting Topic 842	1,585		(45		)	1,540		1,588		(48		)	1,540		1,540
As of January 1, 2019	$	1,585	$	857		$	22,922	$	1,588	$	1,256		$	21,804	$	22,922

Debt (Tables)

6 Months Ended

Jun. 30, 2019

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
June 30, 2019

Fixed or
Floating
Interest
Rate

Maturity

June 30,
2019

December 31,
2018

Non-Vehicle Debt

Senior Term Loan

5.16%

Floating

6/2023

667

674

Senior RCF

N/A

Floating

6/2021

—



Facility	Weighted Average Interest Rate as of June 30, 2019	Fixed or Floating Interest Rate	Maturity	June 30, 2019		December 31, 2018
Senior Notes⁽¹⁾	6.13%	Fixed	10/2020-10/2024	2,500		2,500
Senior Second Priority Secured Notes	7.63%	Fixed	6/2022	1,250		1,250
Promissory Notes	7.00%	Fixed	1/2028	27		27
Other Non-Vehicle Debt	6.92%	Fixed	Various	13		4
Unamortized Debt Issuance Costs and Net (Discount) Premium				(29	)	(33	)
Total Non-Vehicle Debt				4,428		4,422
Vehicle Debt
HVF II U.S. ABS Program
HVF II U.S. Vehicle Variable Funding Notes
HVF II Series 2013-A⁽²⁾	3.71%	Floating	3/2021	4,104		2,940
HVF II Series 2019-A⁽²⁾	N/A	Floating	10/2019	—		—
				4,104		2,940
HVF II U.S. Vehicle Medium Term Notes
HVF II Series 2015-1⁽²⁾	2.93%	Fixed	3/2020	780		780
HVF II Series 2015-3⁽²⁾	3.10%	Fixed	9/2020	371		371
HVF II Series 2016-1⁽²⁾	N/A	N/A	N/A	—		466
HVF II Series 2016-2⁽²⁾	3.41%	Fixed	3/2021	595		595
HVF II Series 2016-3⁽²⁾	2.72%	Fixed	7/2019	424		424
HVF II Series 2016-4⁽²⁾	3.09%	Fixed	7/2021	424		424
HVF II Series 2017-1⁽²⁾	3.38%	Fixed	10/2020	450		450
HVF II Series 2017-2⁽²⁾	3.57%	Fixed	10/2022	350		350
HVF II Series 2018-1⁽²⁾	3.41%	Fixed	2/2023	1,000		1,000
HVF II Series 2018-2⁽²⁾	3.80%	Fixed	6/2021	200		200
HVF II Series 2018-3⁽²⁾	4.15%	Fixed	7/2023	200		200
HVF II Series 2019-1⁽²⁾	3.85%	Fixed	3/2022	700		—
HVF II Series 2019-2⁽²⁾	3.51%	Fixed	5/2024	750		—
				6,244		5,260
Donlen ABS Program
HFLF Variable Funding Notes
HFLF Series 2013-2⁽²⁾	3.20%	Floating	3/2021	64		320
				64		320
HFLF Medium Term Notes
HFLF Series 2015-1⁽³⁾	N/A	N/A	N/A	—		33
HFLF Series 2016-1⁽³⁾	4.04%	Both	7/2019-1/2020	99		171
HFLF Series 2017-1⁽³⁾	2.86%	Both	7/2019-3/2021	308		397
HFLF Series 2018-1⁽³⁾	3.25%	Both	7/2019-6/2021	550		550
HFLF Series 2019-1⁽³⁾	2.85%	Both	2/2020-11/2022	650		—
				1,607		1,151



Facility	Weighted Average Interest Rate as of June 30, 2019	Fixed or Floating Interest Rate	Maturity	June 30, 2019			December 31, 2018
Vehicle Debt - Other
U.S. Vehicle RCF	4.90%	Floating	6/2021	146			146
European Vehicle Notes⁽⁴⁾	5.07%	Fixed	10/2021-3/2023	825			829
European ABS⁽²⁾	1.75%	Floating	10/2020	1,026			600
Canadian Securitization⁽²⁾	3.25%	Floating	10/2019-3/2021	335			220
Australian Securitization⁽²⁾	3.09%	Floating	3/2020	151			155
New Zealand RCF	4.40%	Floating	3/2020	37			40
U.K. Financing Facility	3.07%	Floating	7/2019-5/2022	393			242
Other Vehicle Debt	3.96%	Floating	7/2019-4/2023	37			42
				2,950			2,274
Unamortized Debt Issuance Costs and Net (Discount) Premium				(50		)	(43		)
Total Vehicle Debt				14,919			11,902
Total Debt				$	19,347		$	16,324

N/A - Not applicable


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



(In millions)	Outstanding Principal
Senior Notes	June 30, 2019		December 31, 2018
5.875% Senior Notes due October 2020	$	700	$	700
7.375% Senior Notes due January 2021	500		500
6.250% Senior Notes due October 2022	500		500
5.500% Senior Notes due October 2024	800		800
	$	2,500	$	2,500

(2)

(3)

(4)



(In millions)	Outstanding Principal
European Vehicle Notes	June 30, 2019		December 31, 2018
4.125% Senior Notes due October 2021	$	256	$	257
5.500% Senior Notes due March 2023	569		572
	$	825	$	829

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 June 30, 2019				As of December 31, 2018
(In millions)	Nominal Unpaid Principal Balance		Aggregate Fair Value		Nominal Unpaid Principal Balance		Aggregate Fair Value
Non-Vehicle Debt	$	4,457	$	4,458	$	4,455	$	4,011
Vehicle Debt	14,969		15,080		11,945		11,891
Total	$	19,426	$	19,538	$	16,400	$	15,902

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

The following facilities were available to the Company as of June 30, 2019 and are presented net of any outstanding letters of credit:



(In millions)	Remaining Capacity		Availability Under Borrowing Base Limitation
Non-Vehicle Debt
Senior RCF	$	397	$	397
Letter of Credit Facility	4		4
Total Non-Vehicle Debt	401		401
Vehicle Debt
U.S. Vehicle RCF	—		—
HVF II U.S. Vehicle Variable Funding Notes	501		—
HFLF Variable Funding Notes	436		15
European ABS	112		—
Canadian Securitization	—		—
Australian Securitization	23		—
U.K. Financing Facility	19		—
New Zealand RCF	3		—
Total Vehicle Debt	1,094		15
Total	$	1,495	$	416

Leases (Tables)

6 Months Ended

Jun. 30, 2019

Leases [Abstract]

Operating Lease, Lease Income



(In millions)	Three Months Ended June 30, 2019		Six Months Ended June 30, 2019
Operating lease income from vehicle rentals	$	2,208	$	4,041
Operating lease income from fleet leasing	168		326
Variable operating lease income	43		77
Revenue accounted for under Topic 842	2,419		4,444
Revenue accounted for under Topic 606	92		174
Total revenues	$	2,511	$	4,618

Schedule of Operating Lease Costs

The following table summarizes the amount of lease costs incurred by the Company:



(In millions)	Three Months Ended June 30, 2019		Six Months Ended June 30, 2019		Year Ended December 31, 2018
Minimum fixed lease costs⁽¹⁾:
Short-term lease costs	$	32	$	62	N/A
Other operating lease costs	135		269		N/A
Total	$	167	$	331	$	577
Variable lease costs	83		146		438
Total lease costs	$	250	$	477	$	1,015

Operating Lease, Disclosure

The following summarizes the weighted average remaining lease term and weighted average discount rate for the Company's operating leases as a lessee:



	As of June 30, 2019
Weighted average remaining lease term (in years)	9
Weighted average discount rate	10.9	%

Lessee, Operating Lease, Liability, Maturity



(In millions)
July 1, 2019 - June 30, 2020	$	465
July 1, 2020 - June 30, 2021	385
July 1, 2021 - June 30, 2022	311
July 1, 2022 - June 30, 2023	231
July 1, 2023 - June 30, 2024	174
After June 30, 2024	964
Total lease payments	2,530
Interest	(992		)
Operating lease liabilities at June 30, 2019	$	1,538

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

6 Months Ended

Jun. 30, 2019

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

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



	Three Months Ended June 30,						Six Months Ended June 30,
(In millions, except per share data)	2019			2018			2019			2018
Basic and diluted earnings (loss) per share:
Numerator:
Net income (loss)	$	40		$	(63	)	$	(107	)	$	(265	)
Net (income) loss attributable to noncontrolling interests	(2		)	—			(1		)	—
Net income (loss) attributable to Hertz Global	$	38		$	(63	)	$	(108	)	$	(265	)
Denominator:
Unadjusted basic weighted average shares outstanding	84			84			84			83
Rights offering adjustment	12			12			12			12
Basic weighted average shares outstanding	96			96			96			95
Dilutive stock options, RSUs and PSUs	1			—			—			—
Weighted average shares used to calculate diluted earnings (loss) per share	97			96			96			95
Antidilutive stock options, RSUs, PSUs and PSAs	1			3			2			3
Earnings (loss) per share:
Basic earnings (loss) per share	$	0.40		$	(0.66	)	$	(1.13	)	$	(2.78	)
Diluted earnings (loss) per share	$	0.40		$	(0.66	)	$	(1.13	)	$	(2.78	)

Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2019

Fair Value Disclosures [Abstract]

Cash, Cash Equivalents and Investments

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



	June 30, 2019								December 31, 2018
(In millions)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Money market funds and time deposits	$	202	$	—	$	—	$	202	$	701	$	—	$	—	$	701
Equity securities	64		—		—		64		44		—		—		44

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
June 30, 2019

Fixed or
Floating
Interest
Rate

Maturity

June 30,
2019

December 31,
2018

Non-Vehicle Debt

Senior Term Loan

5.16%

Floating

6/2023

667

674

Senior RCF

N/A

Floating

6/2021

—



Facility	Weighted Average Interest Rate as of June 30, 2019	Fixed or Floating Interest Rate	Maturity	June 30, 2019		December 31, 2018
Senior Notes⁽¹⁾	6.13%	Fixed	10/2020-10/2024	2,500		2,500
Senior Second Priority Secured Notes	7.63%	Fixed	6/2022	1,250		1,250
Promissory Notes	7.00%	Fixed	1/2028	27		27
Other Non-Vehicle Debt	6.92%	Fixed	Various	13		4
Unamortized Debt Issuance Costs and Net (Discount) Premium				(29	)	(33	)
Total Non-Vehicle Debt				4,428		4,422
Vehicle Debt
HVF II U.S. ABS Program
HVF II U.S. Vehicle Variable Funding Notes
HVF II Series 2013-A⁽²⁾	3.71%	Floating	3/2021	4,104		2,940
HVF II Series 2019-A⁽²⁾	N/A	Floating	10/2019	—		—
				4,104		2,940
HVF II U.S. Vehicle Medium Term Notes
HVF II Series 2015-1⁽²⁾	2.93%	Fixed	3/2020	780		780
HVF II Series 2015-3⁽²⁾	3.10%	Fixed	9/2020	371		371
HVF II Series 2016-1⁽²⁾	N/A	N/A	N/A	—		466
HVF II Series 2016-2⁽²⁾	3.41%	Fixed	3/2021	595		595
HVF II Series 2016-3⁽²⁾	2.72%	Fixed	7/2019	424		424
HVF II Series 2016-4⁽²⁾	3.09%	Fixed	7/2021	424		424
HVF II Series 2017-1⁽²⁾	3.38%	Fixed	10/2020	450		450
HVF II Series 2017-2⁽²⁾	3.57%	Fixed	10/2022	350		350
HVF II Series 2018-1⁽²⁾	3.41%	Fixed	2/2023	1,000		1,000
HVF II Series 2018-2⁽²⁾	3.80%	Fixed	6/2021	200		200
HVF II Series 2018-3⁽²⁾	4.15%	Fixed	7/2023	200		200
HVF II Series 2019-1⁽²⁾	3.85%	Fixed	3/2022	700		—
HVF II Series 2019-2⁽²⁾	3.51%	Fixed	5/2024	750		—
				6,244		5,260
Donlen ABS Program
HFLF Variable Funding Notes
HFLF Series 2013-2⁽²⁾	3.20%	Floating	3/2021	64		320
				64		320
HFLF Medium Term Notes
HFLF Series 2015-1⁽³⁾	N/A	N/A	N/A	—		33
HFLF Series 2016-1⁽³⁾	4.04%	Both	7/2019-1/2020	99		171
HFLF Series 2017-1⁽³⁾	2.86%	Both	7/2019-3/2021	308		397
HFLF Series 2018-1⁽³⁾	3.25%	Both	7/2019-6/2021	550		550
HFLF Series 2019-1⁽³⁾	2.85%	Both	2/2020-11/2022	650		—
				1,607		1,151



Facility	Weighted Average Interest Rate as of June 30, 2019	Fixed or Floating Interest Rate	Maturity	June 30, 2019			December 31, 2018
Vehicle Debt - Other
U.S. Vehicle RCF	4.90%	Floating	6/2021	146			146
European Vehicle Notes⁽⁴⁾	5.07%	Fixed	10/2021-3/2023	825			829
European ABS⁽²⁾	1.75%	Floating	10/2020	1,026			600
Canadian Securitization⁽²⁾	3.25%	Floating	10/2019-3/2021	335			220
Australian Securitization⁽²⁾	3.09%	Floating	3/2020	151			155
New Zealand RCF	4.40%	Floating	3/2020	37			40
U.K. Financing Facility	3.07%	Floating	7/2019-5/2022	393			242
Other Vehicle Debt	3.96%	Floating	7/2019-4/2023	37			42
				2,950			2,274
Unamortized Debt Issuance Costs and Net (Discount) Premium				(50		)	(43		)
Total Vehicle Debt				14,919			11,902
Total Debt				$	19,347		$	16,324

N/A - Not applicable


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



(In millions)	Outstanding Principal
Senior Notes	June 30, 2019		December 31, 2018
5.875% Senior Notes due October 2020	$	700	$	700
7.375% Senior Notes due January 2021	500		500
6.250% Senior Notes due October 2022	500		500
5.500% Senior Notes due October 2024	800		800
	$	2,500	$	2,500

(2)

(3)

(4)



(In millions)	Outstanding Principal
European Vehicle Notes	June 30, 2019		December 31, 2018
4.125% Senior Notes due October 2021	$	256	$	257
5.500% Senior Notes due March 2023	569		572
	$	825	$	829

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 June 30, 2019				As of December 31, 2018
(In millions)	Nominal Unpaid Principal Balance		Aggregate Fair Value		Nominal Unpaid Principal Balance		Aggregate Fair Value
Non-Vehicle Debt	$	4,457	$	4,458	$	4,455	$	4,011
Vehicle Debt	14,969		15,080		11,945		11,891
Total	$	19,426	$	19,538	$	16,400	$	15,902

Segment Information (Tables)

6 Months Ended

Jun. 30, 2019

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment



	Three Months Ended June 30,						Six Months Ended June 30,
(In millions)	2019			2018			2019			2018
Revenues
U.S. Rental Car	$	1,784		$	1,628		$	3,304		$	3,054
International Rental Car	560			589			993			1,057
All Other Operations	167			172			321			341
Total Hertz Global and Hertz	$	2,511		$	2,389		$	4,618		$	4,452
Depreciation of revenue earning vehicles and lease charges
U.S. Rental Car	$	411		$	447		$	797		$	881
International Rental Car	106			112			203			214
All Other Operations	117			128			226			253
Total Hertz Global and Hertz	$	634		$	687		$	1,226		$	1,348
Adjusted EBITDA
U.S. Rental Car	$	156		$	18		$	163		$	(30	)
International Rental Car	56			81			42			81
All Other Operations	24			21			45			41
Corporate	(29		)	(27		)	(47		)	(59		)
Total Hertz Global and Hertz	$	207		$	93		$	203		$	33



(In millions)	June 30, 2019			December 31, 2018
Total assets
U.S. Rental Car	$	17,775		$	13,983
International Rental Car	5,470			4,057
All Other Operations	2,059			1,843
Corporate	1,050			1,499
Total Hertz Global	26,354			21,382
Corporate - Hertz	(1		)	—
Hertz	$	26,353		$	21,382

Reconciliations of Adjusted EBITDA by segment to the Company's total amounts are summarized below.

Hertz Global



	Three Months Ended June 30,						Six Months Ended June 30,
(In millions)	2019			2018			2019			2018
Adjusted EBITDA:
U.S. Rental Car	$	156		$	18		$	163		$	(30	)
International Rental Car	56			81			42			81
All Other Operations	24			21			45			41
Total reportable segments	236			120			250			92
Corporate⁽¹⁾	(29		)	(27		)	(47		)	(59		)
Total Hertz Global	207			93			203			33
Adjustments:
Non-vehicle depreciation and amortization	(51		)	(56		)	(99		)	(113		)
Non-vehicle debt interest, net of interest income	(72		)	(73		)	(144		)	(146		)
Vehicle debt-related charges⁽²⁾	(9		)	(9		)	(19		)	(19		)
Loss on extinguishment of vehicle debt⁽³⁾	—			(20		)	—			(22		)
Restructuring and restructuring related charges⁽⁴⁾	(4		)	(10		)	(10		)	(13		)
Information technology and finance transformation costs⁽⁵⁾	(38		)	(29		)	(60		)	(51		)
Other items⁽⁶⁾	11			18			25			14
Income (loss) before income taxes	$	44		$	(86	)	$	(104	)	$	(317	)

Hertz



	Three Months Ended June 30,						Six Months Ended June 30,
(In millions)	2019			2018			2019			2018
Adjusted EBITDA:
U.S. Rental Car	$	156		$	18		$	163		$	(30	)
International Rental Car	56			81			42			81
All Other Operations	24			21			45			41
Total reportable segments	236			120			250			92
Corporate⁽¹⁾	(29		)	(27		)	(47		)	(59		)
Total Hertz	207			93			203			33
Adjustments:
Non-vehicle depreciation and amortization	(51		)	(56		)	(99		)	(113		)
Non-vehicle debt interest, net of interest income	(70		)	(71		)	(141		)	(143		)
Vehicle debt-related charges⁽²⁾	(9		)	(9		)	(19		)	(19		)
Loss on extinguishment of vehicle debt⁽³⁾	—			(20		)	—			(22		)
Restructuring and restructuring related charges⁽⁴⁾	(4		)	(10		)	(10		)	(13		)
Information technology and finance transformation costs⁽⁵⁾	(38		)	(29		)	(60		)	(51		)
Other items⁽⁶⁾	11			18			25			14
Income (loss) before income taxes	$	46		$	(84	)	$	(101	)	$	(314	)


(1)	Represents other reconciling items primarily consisting of general corporate expenses, non-vehicle interest expense, as well as other business activities.


(2)	Represents vehicle debt-related charges relating to the amortization of deferred financing costs and debt discounts and premiums.


(3)	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.

(4)


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

(6)

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

6 Months Ended

Jun. 30, 2019

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

Condensed Balance Sheet

THE HERTZ CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATING BALANCE SHEET

June 30, 2019

(In millions)



	Parent (The Hertz Corporation)		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations			The Hertz Corporation & Subsidiaries
ASSETS
Cash and cash equivalents	$	140	$	4	$	271	$	—		$	415
Restricted cash and cash equivalents	76		7		156		—			239
Total cash, cash equivalents, restricted cash and restricted cash equivalents	216		11		427		—			654
Receivables, net of allowance	450		187		1,061		—			1,698
Due from affiliates	3,460		4,333		7,687		(15,480		)	—
Prepaid expenses and other assets	4,995		29		290		(4,389		)	925
Revenue earning vehicles, net	431		—		16,014		—			16,445
Property and equipment, net	610		65		97		—			772
Operating lease right-of-use assets	1,005		173		369		—			1,547
Investment in subsidiaries, net	7,770		1,599		—		(9,369		)	—
Intangible assets, net	212		3,013		4		—			3,229
Goodwill	102		943		38		—			1,083
Total assets	$	19,251	$	10,353	$	25,987	$	(29,238	)	$	26,353
LIABILITIES AND STOCKHOLDER'S EQUITY
Due to affiliates	$	11,203	$	1,132	$	3,145	$	(15,480	)	$	—
Accounts payable	416		114		839		—			1,369
Accrued liabilities	824		55		479		—			1,358
Accrued taxes, net	89		19		2,479		(2,423		)	164
Debt	4,574		—		14,773		—			19,347
Operating lease liabilities	996		172		370		—			1,538
Public liability and property damage	189		39		198		—			426
Deferred income taxes, net	—		1,733		1,318		(1,966		)	1,085
Total liabilities	18,291		3,264		23,601		(19,869		)	25,287
Stockholder's equity:
Total stockholder's equity attributable to Hertz	960		7,089		2,280		(9,369		)	960
Noncontrolling interests	—		—		106		—			106
Total stockholder's equity	960		7,089		2,386		(9,369		)	1,066
Total liabilities and stockholder's equity	$	19,251	$	10,353	$	25,987	$	(29,238	)	$	26,353

THE HERTZ CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATING BALANCE SHEET

December 31, 2018

(In millions)



	Parent (The Hertz Corporation)		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations			The Hertz Corporation & Subsidiaries
ASSETS
Cash and cash equivalents	$	576	$	3	$	548	$	—		$	1,127
Restricted cash and cash equivalents	137		8		138		—			283
Total cash, cash equivalents, restricted cash and restricted cash equivalents	713		11		686		—			1,410
Receivables, net of allowance	421		174		992		—			1,587
Due from affiliates	3,522		5,312		9,101		(17,935		)	—
Prepaid expenses and other assets	4,863		34		269		(4,264		)	902
Revenue earning vehicles, net	421		1		11,997		—			12,419
Property and equipment, net	590		64		124		—			778
Investment in subsidiaries, net	7,648		1,526		—		(9,174		)	—
Intangible assets, net	160		3,039		4		—			3,203
Goodwill	102		943		38		—			1,083
Total assets	$	18,440	$	11,104	$	23,211	$	(31,373	)	$	21,382
LIABILITIES AND STOCKHOLDER'S EQUITY
Due to affiliates	$	11,351	$	2,306	$	4,278	$	(17,935	)	$	—
Accounts payable	388		97		503		—			988
Accrued liabilities	823		69		412		—			1,304
Accrued taxes, net	67		15		2,359		(2,305		)	136
Debt	4,567		—		11,757		—			16,324
Public liability and property damage	185		41		192		—			418
Deferred income taxes, net	—		1,729		1,324		(1,959		)	1,094
Total liabilities	17,381		4,257		20,825		(22,199		)	20,264
Stockholder's equity:
Total stockholder's equity attributable to Hertz	1,059		6,847		2,327		(9,174		)	1,059
Noncontrolling interests	—		—		59		—			59
Total stockholder's equity	1,059		6,847		2,386		(9,174		)	1,118
Total liabilities and stockholder's equity	$	18,440	$	11,104	$	23,211	$	(31,373	)	$	21,382

Condensed Income Statement

THE HERTZ CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

For the Three Months Ended June 30, 2019

(In millions)



	Parent (The Hertz Corporation)			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			The Hertz Corporation & Subsidiaries
Total revenues	$	1,294		$	397		$	2,457		$	(1,637	)	$	2,511
Expenses:
Direct vehicle and operating	727			304			357			—			1,388
Depreciation of revenue earning vehicles and lease charges	1,585			88			598			(1,637		)	634
Selling, general and administrative	148			50			60			—			258
Interest (income) expense, net	108			(48		)	137			—			197
Other (income) expense, net	(12		)	—			—			—			(12		)
Total expenses	2,556			394			1,152			(1,637		)	2,465
Income (loss) before income taxes and equity in earnings (losses) of subsidiaries	(1,262		)	3			1,305			—			46
Income tax (provision) benefit	62			(1		)	(66		)	—			(5		)
Equity in earnings (losses) of subsidiaries, net of tax	1,239			33			—			(1,272		)	—
Net income (loss)	39			35			1,239			(1,272		)	41
Net (income) loss attributable to noncontrolling interests	—			—			(2		)	—			(2		)
Net income (loss) attributable to Hertz	39			35			1,237			(1,272		)	39
Total other comprehensive income (loss), net of tax	(2		)	2			(3		)	1			(2		)
Comprehensive income (loss) attributable to Hertz	$	37		$	37		$	1,234		$	(1,271	)	$	37

For the Three Months Ended June 30, 2018

(In millions)



	Parent (The Hertz Corporation)			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			The Hertz Corporation & Subsidiaries
Total revenues	$	1,193		$	368		$	2,129		$	(1,301	)	$	2,389
Expenses:
Direct vehicle and operating	839			182			328			—			1,349
Depreciation of revenue earning vehicles and lease charges	1,220			98			670			(1,301		)	687
Selling, general and administrative	179			16			70			—			265
Interest (income) expense, net	100			(37		)	135			—			198
Other (income) expense, net	(25		)	—			(1		)	—			(26		)
Total expenses	2,313			259			1,202			(1,301		)	2,473
Income (loss) before income taxes and equity in earnings (losses) of subsidiaries	(1,120		)	109			927			—			(84		)
Income tax (provision) benefit	235			(21		)	(191		)	—			23
Equity in earnings (losses) of subsidiaries, net of tax	824			34			—			(858		)	—
Net income (loss)	(61		)	122			736			(858		)	(61		)
Total other comprehensive income (loss), net of tax	(14		)	(3		)	(14		)	17			(14		)
Comprehensive income (loss)	$	(75	)	$	119		$	722		$	(841	)	$	(75	)

Condensed Cash Flow Statement

THE HERTZ CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the Six Months Ended June 30, 2019

(In millions)



	Parent (The Hertz Corporation)			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			The Hertz Corporation & Subsidiaries
Net cash provided by (used in) operating activities	$	336		$	4		$	2,871		$	(2,154	)	$	1,057
Cash flows from investing activities:
Revenue earning vehicles expenditures	(272		)	—			(8,675		)	—			(8,947		)
Proceeds from disposal of revenue earning vehicles	131			—			4,081			—			4,212
Capital asset expenditures, non-vehicle	(102		)	(4		)	(12		)	—			(118		)
Proceeds from property and other equipment disposed of or to be disposed of	19			—			2			—			21
Capital contributions to subsidiaries	(711		)	—			—			711			—
Return of capital from subsidiaries	442			—			—			(442		)	—
Proceeds from/repayments of intercompany loan	—			—			325			(325		)	—
Net cash provided by (used in) investing activities	(493		)	(4		)	(4,279		)	(56		)	(4,832		)
Cash flows from financing activities:
Proceeds from issuance of vehicle debt	550			—			7,717			—			8,267
Repayments of vehicle debt	(550		)	—			(4,704		)	—			(5,254		)
Proceeds from issuance of non-vehicle debt	815			—			—			—			815
Repayments of non-vehicle debt	(823		)	—			—			—			(823		)
Payment of financing costs	—			—			(23		)	—			(23		)
Advances to Hertz Holdings	(6		)	—			—			—			(6		)
Contributions from noncontrolling interests	—			—			45			—			45
Other	(1		)	—			—			—			(1		)
Capital contributions received from parent	—			—			711			(711		)	—
Payment of dividends and return of capital	—			—			(2,596		)	2,596			—
Proceeds from/repayments of intercompany loan	(325		)	—			—			325			—
Net cash provided by (used in) financing activities	(340		)	—			1,150			2,210			3,020
Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents	—			—			(1		)	—			(1		)
Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents during the period	(497		)	—			(259		)	—			(756		)
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period	713			11			686			—			1,410
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period	$	216		$	11		$	427		$	—		$	654

THE HERTZ CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the Six Months Ended June 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	$	(34	)	$	5		$	2,093		$	(1,119	)	$	945
Cash flows from investing activities:
Revenue earning vehicles expenditures	(213		)	—			(7,397		)	—			(7,610		)
Proceeds from disposal of revenue earning vehicles	96			—			3,558			—			3,654
Capital asset expenditures, non-vehicle	(54		)	(6		)	(20		)	—			(80		)
Proceeds from property and other equipment disposed of or to be disposed of	3			—			5			—			8
Purchases of marketable securities	(60		)	—			(1		)	—			(61		)
Sales of marketable securities	36			—			—			—			36
Other	—			—			(2		)	—			(2		)
Capital contributions to subsidiaries	(1,978		)	—			—			1,978			—
Return of capital from subsidiaries	1,900			—			—			(1,900		)	—
Proceeds from/repayments of intercompany loan	—			—			76			(76		)	—
Net cash provided by (used in) investing activities	(270		)	(6		)	(3,781		)	2			(4,055		)
Cash flows from financing activities:
Proceeds from issuance of vehicle debt	1,172			—			8,242			—			9,414
Repayments of vehicle debt	(1,226		)	—			(5,603		)	—			(6,829		)
Proceeds from issuance of non-vehicle debt	187			—			—			—			187
Repayments of non-vehicle debt	(194		)	—			—			—			(194		)
Payment of financing costs	(1		)	—			(26		)	—			(27		)
Early redemption premium payment	—			—			(19		)	—			(19		)
Advances to Hertz Holdings	(6		)	—			—			—			(6		)
Contributions from noncontrolling interests	—			—			10			—			10
Other	1			—			—			—			1
Capital contributions received from parent	—			—			1,978			(1,978		)	—
Payment of dividends and return of capital	—			—			(3,019		)	3,019			—
Proceeds from/repayments of intercompany loan	(76		)	—			—			76			—
Net cash provided by (used in) financing activities	(143		)	—			1,563			1,117			2,537
Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents	—			—			(10		)	—			(10		)
Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents during the period	(447		)	(1		)	(135		)	—			(583		)
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	$	464		$	15		$	442		$	—		$	921

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

Jun. 30, 2019

Jan. 01, 2019

Dec. 31, 2018

$ 1,547

$ 1,585

926

857

$ 902

26,354

^[1]

22,922

21,382

^[1]

1,538

1,588

1,358

1,256

1,304

^[1]

25,284

20,262

Accounting Standards Update 2014-09

26,354

21,382

21,802

22,922

1,547

925

902

^[2]

26,353

21,382

1,538

1,358

1,304

^[2]

25,287

20,264

The Hertz Corporation | Accounting Standards Update 2014-09

$ 26,353

21,382

1,585

857

22,922

1,588

1,256

21,804

Calculated under Revenue Guidance in Effect before Topic 606

22,922

902

21,382

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

1,304

20,262

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

21,382

902

21,382

1,304

20,264

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

$ 21,382

1,585

(45)

1,540

1,588

(48)

1,540

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

1,540

1,585

(45)

1,540

1,588

(48)

1,540

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

$ 1,540

[1]

[2]

Debt (Schedule of Debt) (Details) $ in Millions	Jun. 30, 2019 USD ($) € / $	Dec. 31, 2018 USD ($) € / $
Debt Instrument [Line Items]
Debt:	$ 19,347	$ 16,324
Total Non-Vehicle Debt
Debt Instrument [Line Items]
Unamortized Net Discount	(29)	(33)
Debt:	$ 4,428	4,422
Senior Term Loan
Debt Instrument [Line Items]
Average interest rate (as a percent)	5.16%
Outstanding principal	$ 667	674
Senior RCF
Debt Instrument [Line Items]
Outstanding principal	$ 0	0
Senior Notes
Debt Instrument [Line Items]
Average interest rate (as a percent)	6.13%
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%
7.375% Senior Notes due January 2021
Debt Instrument [Line Items]
Outstanding principal	$ 500	500
Interest rate	7.375%
6.250% Senior Notes due October 2022
Debt Instrument [Line Items]
Outstanding principal	$ 500	500
Interest rate	6.25%
5.500% Senior Notes due October 2024
Debt Instrument [Line Items]
Outstanding principal	$ 800	800
Interest rate	5.50%
Senior Second Priority Secured Notes
Debt Instrument [Line Items]
Average interest rate (as a percent)	7.63%
Outstanding principal	$ 1,250	1,250
Promissory Notes
Debt Instrument [Line Items]
Average interest rate (as a percent)	7.00%
Outstanding principal	$ 27	27
Non-Vehicle Debt
Debt Instrument [Line Items]
Average interest rate (as a percent)	6.92%
Outstanding principal	$ 13	4
Total Vehicle Debt
Debt Instrument [Line Items]
Unamortized Net Discount	(50)	(43)
Debt:	14,919	11,902
Total
Debt Instrument [Line Items]
Outstanding principal	$ 4,104	2,940
HVF II Series 2013-A
Debt Instrument [Line Items]
Average interest rate (as a percent)	3.71%
Outstanding principal	$ 4,104	2,940
HVF II Series 2013-B
Debt Instrument [Line Items]
Outstanding principal	0	0
HVF II U.S. Fleet Variable Medium Term Notes
Debt Instrument [Line Items]
Outstanding principal	$ 6,244	5,260
U.S. Fleet Medium Term Notes 2015 Series 1
Debt Instrument [Line Items]
Average interest rate (as a percent)	2.93%
Outstanding principal	$ 780	780
U.S. Fleet Medium Term Notes 2015 Series 3
Debt Instrument [Line Items]
Average interest rate (as a percent)	3.10%
Outstanding principal	$ 371	371
U.S. Fleet Medium Term Notes 2016 Series 1
Debt Instrument [Line Items]
Outstanding principal	$ 0	466
U.S. Fleet Medium Term Notes 2016 Series 2
Debt Instrument [Line Items]
Average interest rate (as a percent)	3.41%
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%
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%
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%
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%
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%
Outstanding principal	$ 1,000	1,000
U.S. Fleet Medium Term Notes 2018 Series 2
Debt Instrument [Line Items]
Average interest rate (as a percent)	3.80%
Outstanding principal	$ 200	200
U.S. Fleet Medium Term Notes 2018 Series 3
Debt Instrument [Line Items]
Average interest rate (as a percent)	4.15%
Outstanding principal	$ 200	200
U.S. Fleet Medium Term Notes 2019 Series 1
Debt Instrument [Line Items]
Average interest rate (as a percent)	3.85%
Outstanding principal	$ 700	0
U.S. Fleet Medium Term Notes 2019 Series 2
Debt Instrument [Line Items]
Average interest rate (as a percent)	3.51%
Outstanding principal	$ 750	0
Donlen ABS Program
Debt Instrument [Line Items]
Outstanding principal	$ 64	320
HFLF Series 2013-2 Notes
Debt Instrument [Line Items]
Average interest rate (as a percent)	3.20%
Outstanding principal	$ 64	320
HFLF Variable Funding Notes
Debt Instrument [Line Items]
Outstanding principal	1,607	1,151
HFLF Series 2015-1
Debt Instrument [Line Items]
Outstanding principal	$ 0	33
HFLF Series 2016-1
Debt Instrument [Line Items]
Average interest rate (as a percent)	4.04%
Outstanding principal	$ 99	171
HFLF Series 2017-1
Debt Instrument [Line Items]
Average interest rate (as a percent)	2.86%
Outstanding principal	$ 308	397
HFLF Series 2018-1
Debt Instrument [Line Items]
Average interest rate (as a percent)	3.25%
Outstanding principal	$ 550	550
HFLF Series 2019-1
Debt Instrument [Line Items]
Average interest rate (as a percent)	2.85%
Outstanding principal	$ 650	0
Other Fleet Debt
Debt Instrument [Line Items]
Outstanding principal	$ 2,950	2,274
U.S. Vehicle RCF
Debt Instrument [Line Items]
Average interest rate (as a percent)	4.90%
Outstanding principal	$ 146	146
European Fleet Notes
Debt Instrument [Line Items]
Average interest rate (as a percent)	5.07%
Outstanding principal	$ 825	$ 829
Foreign currency exchange rate (EURO to USD) \| € / $	1.14	1.14
4.125% Senior Notes due October 2021
Debt Instrument [Line Items]
Outstanding principal	$ 256	$ 257
Interest rate	4.125%
European Fleet Notes, 5.500%, Due March 2023
Debt Instrument [Line Items]
Outstanding principal	$ 569	572
Interest rate	5.50%
European ABS
Debt Instrument [Line Items]
Average interest rate (as a percent)	1.75%
Outstanding principal	$ 1,026	600
Canadian Securitization
Debt Instrument [Line Items]
Average interest rate (as a percent)	3.25%
Outstanding principal	$ 335	220
Australian Securitization
Debt Instrument [Line Items]
Average interest rate (as a percent)	3.09%
Outstanding principal	$ 151	155
New Zealand RCF
Debt Instrument [Line Items]
Average interest rate (as a percent)	4.40%
Outstanding principal	$ 37	40
UK Leveraged Financing
Debt Instrument [Line Items]
Average interest rate (as a percent)	3.07%
Outstanding principal	$ 393	242
Other Vehicle Debt
Debt Instrument [Line Items]
Average interest rate (as a percent)	3.96%
Outstanding principal	$ 37	$ 42

Debt (Narrative) (Details)	1 Months Ended	3 Months Ended		6 Months Ended
Debt (Narrative) (Details)	May 31, 2019 USD ($)	Jun. 30, 2019 USD ($)	Jun. 30, 2018 USD ($)	Jun. 30, 2019 USD ($)	Jun. 30, 2018 USD ($)	Oct. 31, 2019 CAD ($)	May 31, 2019 CAD ($)	Apr. 30, 2019 CAD ($)	Feb. 28, 2019 USD ($)	Dec. 31, 2018 USD ($)
Debt Instrument [Line Items]
Adjustments:		$ 44,000,000	$ (86,000,000)	$ (104,000,000)	$ (317,000,000)
HFLF Variable Funding Notes
Debt Instrument [Line Items]
Outstanding principal		1,607,000,000		1,607,000,000						$ 1,151,000,000
European Vehicle Notes
Debt Instrument [Line Items]
Outstanding principal		825,000,000		825,000,000						829,000,000
HVF II Series 2019-A Variable Funding Rental Car Asset Backed Notes
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity									$ 500,000,000
HVF II U.S. Vehicle Medium Term Notes, Series 2019-1 Rental Car Asset Backed Notes, Class A, B, C and D
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity									745,000,000
HVF II U.S. Vehicle Medium Term Notes, Series 2019-2 Rental Car Asset Backed Notes, Class A, B, C and D
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity	$ 799,000,000
HFLF Medium Term Notes, Series 2019-1 Asset Back Notes, Class A, B, C, D and E
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity	650,000,000
European ABS
Debt Instrument [Line Items]
Outstanding principal		1,026,000,000		1,026,000,000						600,000,000
UK Leveraged Financing
Debt Instrument [Line Items]
Outstanding principal		393,000,000		393,000,000						242,000,000
New Zealand RCF
Debt Instrument [Line Items]
Outstanding principal		37,000,000		37,000,000						40,000,000
HFLF Series 2015-1
Debt Instrument [Line Items]
Outstanding principal		0		0						33,000,000
Canadian Securitization
Debt Instrument [Line Items]
Outstanding principal		$ 335,000,000		335,000,000						220,000,000
Senior RCF
Debt Instrument [Line Items]
Fixed charge coverage ratio, number of quarters		1 year
Senior RCF
Debt Instrument [Line Items]
Outstanding principal		$ 0		0						0
Senior Term Loan
Debt Instrument [Line Items]
Outstanding principal		667,000,000		667,000,000						674,000,000
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%
U.S. Vehicle RCF
Debt Instrument [Line Items]
Outstanding principal		$ 146,000,000		$ 146,000,000						146,000,000
HFLF Series 2013-2 Notes
Debt Instrument [Line Items]
Outstanding principal		64,000,000		64,000,000						320,000,000
HFLF Series 2017-1
Debt Instrument [Line Items]
Outstanding principal		308,000,000		308,000,000						397,000,000
HFLF Series 2016-1
Debt Instrument [Line Items]
Outstanding principal		99,000,000		99,000,000						171,000,000
4.125% Senior Notes due October 2021
Debt Instrument [Line Items]
Outstanding principal		$ 256,000,000		$ 256,000,000						257,000,000
Interest rate		4.125%		4.125%
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]
Line of credit facility, maximum borrowing capacity									400,000,000
Line of credit facility, increase (decrease), net	40,000,000
Outstanding principal		4,104,000,000		4,104,000,000						2,940,000,000
HVF II Series 2013-B
Debt Instrument [Line Items]
Outstanding principal		0		0						0
HFLF Series 2018-1
Debt Instrument [Line Items]
Outstanding principal		550,000,000		550,000,000						550,000,000
European Fleet Notes, 5.500%, Due March 2023
Debt Instrument [Line Items]
Outstanding principal		$ 569,000,000		$ 569,000,000						572,000,000
Interest rate		5.50%		5.50%
5.875% Senior Notes due October 2020
Debt Instrument [Line Items]
Outstanding principal		$ 700,000,000		$ 700,000,000						700,000,000
Interest rate		5.875%		5.875%
7.375% Senior Notes due January 2021
Debt Instrument [Line Items]
Outstanding principal		$ 500,000,000		$ 500,000,000						500,000,000
Interest rate		7.375%		7.375%
Letter of Credit
Debt Instrument [Line Items]
Outstanding standby letters of credit		$ 773,000,000		$ 773,000,000
Vehicles
Debt Instrument [Line Items]
Repayments of principal in next twelve months		2,700,000,000		2,700,000,000
Repayments of debt				5,254,000,000	6,829,000,000
Proceeds from issuance of debt				8,267,000,000	9,414,000,000
Non-vehicle
Debt Instrument [Line Items]
Repayments of principal in next twelve months		20,000,000		20,000,000
Repayments of debt				823,000,000	194,000,000
Proceeds from issuance of debt				815,000,000	$ 187,000,000
Revolving Credit Facility \| Senior RCF
Debt Instrument [Line Items]
Outstanding standby letters of credit		465,000,000		465,000,000
Revolving Credit Facility \| Canadian Securitization, Due October 2018
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity								$ 90,000,000
Revolving Credit Facility \| UK Financing Facility, Due October 2019
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity							$ 325,000,000
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%
VIE, total assets		1,300,000,000		$ 1,300,000,000						946,000,000
VIE, total liabilities		$ 1,300,000,000		$ 1,300,000,000						$ 946,000,000
Affiliated Entity \| HVF II U.S. Vehicle Medium Term Notes, Series 2019-1 Rental Car Asset Backed Notes, Class D
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity									$ 45,000,000
Affiliated Entity \| HVF II U.S. Vehicle Medium Term Notes, Series 2019-2 Rental Car Asset Backed Notes, Class D
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity	$ 49,000,000
Forecast \| Revolving Credit Facility \| Funding LP Series 2015-A Notes
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity						$ 350,000,000
Forecast \| Revolving Credit Facility \| UK Financing Facility
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity						$ 250,000,000

Debt (Borrowing Capacity) (Details) $ in Millions	Jun. 30, 2019 USD ($)
Debt Instrument [Line Items]
Remaining capacity	$ 1,495
Availability under borrowing base limitation	416
Total Non-Vehicle Debt
Debt Instrument [Line Items]
Remaining capacity	401
Availability under borrowing base limitation	401
Senior RCF
Debt Instrument [Line Items]
Remaining capacity	397
Availability under borrowing base limitation	397
Letter of Credit Facility
Debt Instrument [Line Items]
Remaining capacity	4
Availability under borrowing base limitation	4
Total Vehicle Debt
Debt Instrument [Line Items]
Remaining capacity	1,094
Availability under borrowing base limitation	15
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	501
Availability under borrowing base limitation	0
HFLF Variable Funding Notes
Debt Instrument [Line Items]
Remaining capacity	436
Availability under borrowing base limitation	15
European ABS
Debt Instrument [Line Items]
Remaining capacity	112
Availability under borrowing base limitation	0
Canadian Securitization
Debt Instrument [Line Items]
Remaining capacity	0
Availability under borrowing base limitation	0
Australian Securitization
Debt Instrument [Line Items]
Remaining capacity	23
Availability under borrowing base limitation	0
U.K. Financing Facility
Debt Instrument [Line Items]
Remaining capacity	19
Availability under borrowing base limitation	0
New Zealand RCF
Debt Instrument [Line Items]
Remaining capacity	3
Availability under borrowing base limitation	$ 0

Debt (Covenant Ratios) (Details)	Jun. 30, 2019
Senior Revolving Credit Facility and Letter of Credit Facility
Debt Instrument [Line Items]
Maximum consolidated leverage ratio	3.00

Leases - Lease Income (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
Leases - Lease Income (Details) - USD ($) $ in Millions	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Lessee, Lease, Description [Line Items]
Remaining economic life of underlying asset, minimum threshold			75.00%
Remaining life of underlying asset, percent			25.00%
Present value threshold of aggregate lease payments, fair value of underlying asset			90.00%
Operating Lease, Lease Income [Abstract]
Lease income	$ 2,419		$ 4,444
Revenue accounted for under Topic 606	92		174
Revenues	2,511	$ 2,389	4,618	$ 4,452
Vehicle Rentals, Operating Lease
Operating Lease, Lease Income [Abstract]
Lease income	2,208		4,041
Fleet Leasing, Operating Lease
Operating Lease, Lease Income [Abstract]
Lease income	168		326
Variable, Operating Lease
Operating Lease, Lease Income [Abstract]
Lease income	$ 43		$ 77
Minimum
Lessee, Lease, Description [Line Items]
Lease, term	1 month		1 month
Maximum
Lessee, Lease, Description [Line Items]
Lease, term	35 years		35 years

Leases - Lease Costs (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
Leases - Lease Costs (Details) - USD ($) $ in Millions	Jun. 30, 2019	Jun. 30, 2019	Jun. 30, 2018
Lease, Cost [Abstract]
Short-term lease costs	$ 32	$ 62
Other operating lease costs	135	269
Total	167	331	$ 577
Variable lease costs	83	146	438
Total lease costs	$ 250	$ 477	$ 1,015

Leases - Schedule of Weighted Average Lease Term and Discount Rates (Details)	Jun. 30, 2019
Leases [Abstract]
Weighted average remaining lease term (in years)	9 years
Weighted average discount rate	10.90%

Leases - Schedule of Operating Lease Fiscal Year Maturity (Details) - USD ($) $ in Millions	Jun. 30, 2019	Jan. 01, 2019
Leases [Abstract]
July 1, 2019 - June 30, 2020	$ 465
July 1, 2020 - June 30, 2021	385
July 1, 2021 - June 30, 2022	311
July 1, 2022 - June 30, 2023	231
July 1, 2023 - June 30, 2024	174
After June 30, 2024	964
Total lease payments	2,530
Interest	(992)
Operating lease liabilities at June 30, 2019	$ 1,538	$ 1,588

Income Tax (Provision) Benefit (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Income Tax Contingency [Line Items]
Effective tax rate (as percent)	(9.00%)	27.00%	(3.00%)	16.00%
Income tax (provision) benefit	$ (4)	$ 23	$ (3)	$ 52
The Hertz Corporation
Income Tax Contingency [Line Items]
Effective tax rate (as percent)	(11.00%)	27.00%	(4.00%)	16.00%
Income tax (provision) benefit	$ (5)	$ 23	$ (4)	$ 51

Earnings (Loss) Per Share - Hertz Global (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended				6 Months Ended
	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2019	Jun. 30, 2018
Numerator:
Net income (loss)	$ 40	$ (148)	$ (63)	$ (202)	$ (107)	$ (265)
Net (income) loss attributable to noncontrolling interests	(2)		0		(1)	0
Net income (loss) attributable to Hertz Global	$ 38		$ (63)		$ (108)	$ (265)
Denominator:
Unadjusted basic weighted average shares outstanding	84		84		84	83
Rights offering adjustment	12		12		12	12
Basic weighted average shares outstanding	96		96		96	95
Dilutive stock options, RSUs and PSUs	1		0		0	0
Weighted average shares used to calculate diluted earnings (loss) per share	97		96		96	95
Earnings (loss) per share:
Basic earnings (loss) per share (in dollars per share)	$ 0.40		$ (0.66)		$ (1.13)	$ (2.78)
Diluted earnings (loss) per share (in dollars per share)	$ 0.40		$ (0.66)		$ (1.13)	$ (2.78)
Antidilutive stock options, RSUs and PSUs
Denominator:
Antidilutive stock options, RSUs, PSUs and PSAs	1		3		2	3

Fair Value Measurements (Cash and Cash Equivalents and Investments) (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
Money market funds and time deposits
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	$ 202	$ 701
Money market funds and time deposits \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	202	701
Money market funds and time deposits \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	0	0
Money market funds and time deposits \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	0	0
Equity securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	64	44
Equity securities \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	64	44
Equity securities \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	0	0
Equity securities \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	$ 0	$ 0

Fair Value Measurements (Financial Instruments) (Details) - Fair Value, Measurements, Recurring - Level 2 - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
Fair Value of Financial Instruments [Abstract]
Nominal Unpaid Principal Balance	$ 19,426	$ 16,400
Aggregate Fair Value	19,538	15,902
Non-Vehicle Debt
Fair Value of Financial Instruments [Abstract]
Nominal Unpaid Principal Balance	4,457	4,455
Aggregate Fair Value	4,458	4,011
Total Vehicle Debt
Fair Value of Financial Instruments [Abstract]
Nominal Unpaid Principal Balance	14,969	11,945
Aggregate Fair Value	$ 15,080	$ 11,891

Contingencies and Off-Balance Sheet Commitments (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
Public liability and property damage	$ 426	$ 418
Net proceeds from repayment or recovery	15.00%

Related Party Transactions (Details) - USD ($) $ in Millions	1 Months Ended	3 Months Ended		6 Months Ended
	May 31, 2019	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Related Party Transaction [Line Items]
Sales of marketable securities				$ 0	$ 36
Due from related parties			$ 425		425
Contributions from noncontrolling interests				45	10
Master Loan Agreement
Related Party Transaction [Line Items]
Due from related parties		$ 123		123		$ 117
Tax Related Liability
Related Party Transaction [Line Items]
Due from related parties		65		65		0
Mr. Icahn
Related Party Transaction [Line Items]
Purchases from related party		$ 12	$ 11	$ 24	17
Sales of marketable securities	$ 36
767 Auto Leasing, LLC
Related Party Transaction [Line Items]
Lease, term		18 months		18 months
Lessee, renewal term		6 months		6 months
767 Auto Leasing, LLC \| Master Motor Vehicle Lease and Management Agreement
Related Party Transaction [Line Items]
Operating income or loss, percent				25.00%
The Hertz Corporation
Related Party Transaction [Line Items]
Sales of marketable securities				$ 0	36
Due from related parties		$ 0		0		$ 0
Contributions from noncontrolling interests					$ 1
The Hertz Corporation \| 767 Auto Leasing, LLC
Related Party Transaction [Line Items]
Contributions from noncontrolling interests		$ 20		$ 45

Segment Information (Details)
$ in Millions

3 Months Ended

6 Months Ended

Jun. 30, 2019

USD ($)

Jun. 30, 2018

USD ($)

Jun. 30, 2019

USD ($)

segment

Jun. 30, 2018

USD ($)

Jan. 01, 2019

USD ($)

Dec. 31, 2018

USD ($)

Number of reportable segments | segment

Depreciation of revenue earning vehicles and lease charges

$ 2,511

$ 2,389

$ 4,618

$ 4,452

634

687

1,226

1,348

207

203

26,354

^[1]

26,354

^[1]

$ 22,922

$ 21,382

^[1]

Restructuring and restructuring related charges

(44)

104

317

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

Finance and Information Technology Transformation Costs

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

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

Other

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

(11)

(18)

(25)

(14)

Operating Segments

Operating Segments | U.S. Rental Car

236

120

250

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

Depreciation of revenue earning vehicles and lease charges

1,784

1,628

3,304

3,054

411

447

797

881

156

163

(30)

Operating Segments | International Rental Car

17,775

13,983

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

Depreciation of revenue earning vehicles and lease charges

560

589

993

1,057

106

112

203

214

Operating Segments | All Other Operations

5,470

4,057

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

Depreciation of revenue earning vehicles and lease charges

167

172

321

341

117

128

226

253

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

2,059

1,843

Corporate, Non-Segment

(29)

(27)

(47)

(59)

1,050

1,499

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

Depreciation of revenue earning vehicles and lease charges

2,511

2,389

4,618

4,452

634

687

1,226

1,348

207

203

^[2]

26,353

21,382

Gain (loss) on sale of investments

(46)

101

314

Payments for legal settlements

The Hertz Corporation | Debt-related charges

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

The Hertz Corporation | Restructuring and restructuring related charges

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

The Hertz Corporation | Finance and Information Technology Transformation Costs

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

The Hertz Corporation | Other

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

The Hertz Corporation | Operating Segments

(11)

(18)

(25)

(14)

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

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

236

120

250

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

The Hertz Corporation | Operating Segments | International Rental Car

156

163

(30)

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

The Hertz Corporation | Operating Segments | All Other Operations

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

The Hertz Corporation | Corporate, Non-Segment

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

(29)

(27)

(47)

(59)

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

(1)

$ (1)

$ 0

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

Concentration risk, percentage (less than)

1.00%

Product Concentration Risk | Revenues | All Other Operations

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

Concentration risk, percentage (less than)

1.00%

Non-vehicle | Non-vehicle Deprecation and Amortization

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

Non-vehicle | Debt-related charges

$ 99

113

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

Non-vehicle | The Hertz Corporation

144

146

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

Gain on sale of non-vehicle capital assets

Non-vehicle | The Hertz Corporation | Non-vehicle Deprecation and Amortization

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

Non-vehicle | The Hertz Corporation | Debt-related charges

113

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

Vehicles | Debt-related charges

141

143

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

Vehicles | Loss on Early Extinguishment of Debt

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

Vehicles | The Hertz Corporation | Loss on Early Extinguishment of Debt

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

European Fleet Notes, 4.375%, Due January 2019

$ 0

$ 20

$ 0

$ 22

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

Interest rate

4.375%

[1]

[2]

Guarantor and Non-Guarantor Condensed Consolidating Financial Information - Hertz (Narrative) (Details)	Jun. 30, 2019
Guarantor Subsidiaries
Condensed Financial Statements, Captions [Line Items]
Ownership percentage	100.00%

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

Jun. 30, 2019

Mar. 31, 2019

Jan. 01, 2019

Dec. 31, 2018

Jun. 30, 2018

Mar. 31, 2018

Dec. 31, 2017

ASSETS

$ 415

$ 1,127

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

239

283

654

1,410

$ 921

$ 1,504

1,698

1,587

425

926

$ 857

902

16,445

12,419

772

778

1,547

1,585

3,229

3,203

1,083

26,354

^[1]

22,922

21,382

^[1]

1,369

988

1,358

1,256

1,304

164

136

19,347

16,324

1,538

$ 1,588

426

418

1,082

1,092

^[1]

25,284

20,262

Equity:

964

1,061

106

1,070

$ 1,005

1,120

1,069

$ 1,138

1,520

26,354

21,382

Eliminations

ASSETS

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

(15,480)

(17,935)

(4,389)

(4,264)

(9,369)

(9,174)

(29,238)

(31,373)

(15,480)

(17,935)

(2,423)

(2,305)

(1,966)

(1,959)

(19,869)

(22,199)

Equity:

(9,369)

(9,174)

(9,369)

(9,174)

Parent (The Hertz Corporation)

(29,238)

(31,373)

Equity:

1,059

1,059

Parent (The Hertz Corporation) | Reportable Legal Entities

18,440

ASSETS

140

576

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

137

216

713

464

911

450

421

3,460

3,522

4,995

4,863

431

421

610

590

1,005

7,770

7,648

212

160

102

19,251

18,440

11,203

11,351

416

388

824

823

4,574

4,567

996

189

185

18,291

17,381

Equity:

960

960

19,251

Guarantor Subsidiaries

Equity:

6,847

6,847

Guarantor Subsidiaries | Reportable Legal Entities

11,104

ASSETS

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

187

174

4,333

5,312

173

1,599

1,526

3,013

3,039

943

10,353

11,104

1,132

2,306

114

172

1,733

1,729

3,264

4,257

Equity:

7,089

7,089

Non-Guarantor Subsidiaries

10,353

Equity:

2,327

2,386

Non-Guarantor Subsidiaries | Reportable Legal Entities

23,211

ASSETS

271

548

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

156

138

427

686

442

577

1,061

992

7,687

9,101

290

269

16,014

11,997

124

369

25,987

23,211

3,145

4,278

839

503

479

412

2,479

2,359

14,773

11,757

370

198

192

1,318

1,324

23,601

20,825

Equity:

2,280

106

2,386

25,987

ASSETS

415

1,127

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

239

283

654

1,410

921

1,504

1,698

1,587

925

902

16,445

12,419

772

778

1,547

3,229

3,203

1,083

^[2]

26,353

21,382

1,369

988

1,358

1,304

164

136

19,347

16,324

1,538

426

418

1,085

1,094

^[2]

25,287

20,264

Equity:

960

1,059

106

1,066

$ 1,003

1,118

$ 1,068

$ 1,138

$ 1,520