0001657853-21-000006 | 10-K | XBRL Viewer | Hertz Global Holdings INC

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

411

495

1,507

1,360

777

1,840

Less: accumulated depreciation

373

689

Revenue earning vehicles:

Vehicles

7,540

17,085

(1,478)

(3,296)

Total revenue earning vehicles, net

6,062

13,789

Property and equipment, net

666

757

Operating lease right-of-use assets

1,675

1,871

Intangible assets, net

2,992

3,238

Goodwill

1,045

1,083

Assets held for sale

1,811

Total assets

^[1]

16,908

24,627

418

943

759

1,032

121

150

6,267

17,089

1,636

1,848

488

553

Total liabilities not subject to compromise

730

1,124

10,419

22,739

Liabilities subject to compromise

4,965

Liabilities held for sale

1,431

Total liabilities

^[1]

16,815

22,739

Commitments and contingencies

Stockholder's equity:

Preferred Stock

Common Stock

Additional paid-in capital

3,024

Accumulated deficit

(967)

Accumulated other comprehensive income (loss)

(189)

Treasury stock

100

Stockholder's equity (deficit) attributable to Hertz

1,769

Noncontrolling interests

119

Total stockholder's equity (deficit)

1,888

Total liabilities and stockholder's equity (deficit)

16,908

24,627

Vehicle

ASSETS

466

164

791

289

6,024

13,368

Non-vehicle

ASSETS

361

613

1,049

389

654

Cash and cash equivalents

243

3,721

The Hertz Corporation

ASSETS

1,096

865

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

383

495

1,479

1,360

777

1,840

Less: accumulated depreciation

372

689

Revenue earning vehicles:

Vehicles

7,540

17,085

(1,478)

(3,296)

Total revenue earning vehicles, net

6,062

13,789

Property and equipment, net

666

757

Intangible assets, net

2,992

3,238

Goodwill

1,045

1,083

Assets held for sale

1,811

Total assets

^[2]

16,880

24,627

418

943

759

1,032

121

150

6,267

17,089

488

553

Total liabilities not subject to compromise

735

1,128

10,424

22,743

Liabilities subject to compromise

5,030

Liabilities held for sale

1,431

Total liabilities

^[2]

16,885

22,743

Commitments and contingencies

Stockholder's equity:

Common Stock

Additional paid-in capital

3,953

3,955

Due from affiliate

(64)

Accumulated deficit

(3,783)

(1,937)

Accumulated other comprehensive income (loss)

(212)

(189)

Stockholder's equity (deficit) attributable to Hertz

(42)

1,765

Noncontrolling interests

119

Total stockholder's equity (deficit)

(5)

1,884

Total liabilities and stockholder's equity (deficit)

16,880

24,627

The Hertz Corporation | Vehicle

ASSETS

466

164

791

289

The Hertz Corporation | Non-vehicle

6,024

13,368

ASSETS

333

613

1,049

389

654

Preferred stock, shares issued

$ 243

$ 3,721

[1]

Hertz Global Holdings, Inc.'s consolidated total assets as of December 31, 2020 and December 31, 2019 include total assets of VIEs of $511 million and $1.3 billion, respectively, which can only be used to settle obligations of the VIEs. Hertz Global Holdings, Inc.'s consolidated total liabilities as of December 31, 2020 and December 31, 2019 include total liabilities of VIEs of $475 million and $1.1 billion, respectively, for which the creditors of the VIEs have no recourse to Hertz Global Holdings, Inc. See "Special Purpose Entities" in Note 6, "Debt," and "767 Auto Leasing LLC" in Note 16, "Related Party Transactions," for further information.

[2]

The Hertz Corporation's consolidated total assets as of December 31, 2020 and December 31, 2019 include total assets of VIEs of $511 million and $1.3 billion, respectively, which can only be used to settle obligations of the VIEs. The Hertz Corporation's consolidated total liabilities as of December 31, 2020 and December 31, 2019 include total liabilities of VIEs of $475 million and $1.1 billion, respectively, for which the creditors of the VIEs have no recourse to The Hertz Corporation. See "Special Purpose Entities" in Note 6, "Debt," and "767 Auto Leasing LLC" in Note 16, "Related Party Transactions," for further information.

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
$ in Millions

Dec. 31, 2020

Dec. 31, 2019

Preferred stock, shares outstanding

Common stock, par value (in dollars per share)

$ 0.01

Common stock, shares issued

158,235,410

144,153,444

Common stock, shares outstanding

156,206,478

142,124,512

Treasury stock, shares

2,028,932

Assets

^[1]

$ 16,908

$ 24,627

Liabilities

^[1]

16,815

22,739

Non-vehicle

Receivables, allowance for doubtful accounts (in dollars)

$ 46

$ 35

The Hertz Corporation

Common stock, par value (in dollars per share)

$ 0.01

Common stock, shares authorized

3,000

Common stock, shares issued

100

Common stock, shares outstanding

100

Assets

^[2]

$ 16,880

$ 24,627

Liabilities

^[2]

16,885

22,743

The Hertz Corporation | Non-vehicle

Receivables, allowance for doubtful accounts (in dollars)

The Hertz Corporation | Variable Interest Entity, Primary Beneficiary

Assets

511

1,300

Liabilities

$ 475

$ 1,100

[1]

[2]

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Revenues:
Worldwide vehicle rental	$ 4,628	$ 9,107	$ 8,756
All other operations	630	672	748
Total revenues	5,258	9,779	9,504
Expenses:
Direct vehicle and operating	3,627	5,486	5,355
Depreciation of revenue earning vehicles and lease charges	2,032	2,565	2,690
Selling, general and administrative	664	969	1,017
Interest expense, net:
Total interest expense, net	608	805	739
Intangible and other asset impairments	213	0	0
Other (income) expense, net	(9)	(59)	(40)
Reorganization items, net	175	0	0
Total expenses	7,310	9,766	9,761
Income (loss) before income taxes	(2,052)	13	(257)
Income tax (provision) benefit	329	(63)	30
Net income (loss)	(1,723)	(50)	(227)
Net (income) loss attributable to noncontrolling interests	9	(8)	2
Net income (loss) attributable to Hertz Global	$ (1,714)	$ (58)	$ (225)
Weighted-average shares outstanding:
Basic (in shares)	150	117	96
Diluted (in shares)	150	117	96
Earnings (loss) per share:
Basic earnings (loss) per share (in dollars per share)	$ (11.44)	$ (0.49)	$ (2.35)
Diluted earnings (loss) per share (in dollars per share)	$ (11.44)	$ (0.49)	$ (2.35)
The Hertz Corporation
Revenues:
Worldwide vehicle rental	$ 4,628	$ 9,107	$ 8,756
All other operations	630	672	748
Total revenues	5,258	9,779	9,504
Expenses:
Direct vehicle and operating	3,627	5,486	5,355
Depreciation of revenue earning vehicles and lease charges	2,032	2,565	2,690
Selling, general and administrative	664	969	1,017
Interest expense, net:
Total interest expense, net	606	798	732
Intangible and other asset impairments	213	0	0
Write-off of intercompany loan	133	0	0
Other (income) expense, net	(9)	(59)	(40)
Reorganization items, net	175	0	0
Total expenses	7,441	9,759	9,754
Income (loss) before income taxes	(2,183)	20	(250)
Income tax (provision) benefit	328	(65)	28
Net income (loss)	(1,855)	(45)	(222)
Net (income) loss attributable to noncontrolling interests	9		2
Net income (loss) attributable to Hertz Global	(1,846)	(53)	(220)
Vehicle
Interest expense, net:
Total interest expense, net	(455)	(494)	(448)
Vehicle \| The Hertz Corporation
Interest expense, net:
Total interest expense, net	(455)	(494)	(448)
Non-vehicle
Interest expense, net:
Total interest expense, net	(153)	(311)	(291)
Non-vehicle \| The Hertz Corporation
Interest expense, net:
Total interest expense, net	$ (151)	$ (304)	$ (284)

CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) $ in Millions	12 Months Ended
	Dec. 31, 2020 USD ($)
Non-vehicle \| The Hertz Corporation
Contractual Interest	$ 129

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Net income (loss)	$ (1,723)	$ (50)	$ (227)
Other comprehensive income (loss):
Foreign currency translation adjustments	(19)	6	(34)
Reclassification of foreign currency items to other (income) expense, net	0	0	(1)
Net gain (loss) on pension and postretirement benefit plans	(11)	(11)	(44)
Reclassification from other comprehensive income (loss) to other (income) expense for amortization of actuarial net losses	13	11	5
Total other comprehensive income (loss) before income taxes	(17)	6	(74)
Income tax (provision) benefit related to pension and postretirement benefit plans	(4)	(1)	12
Income tax (provision) benefit related to reclassified amounts of net periodic costs on pension and postretirement benefit plans	(2)	(2)	(1)
Total other comprehensive income (loss)	(23)	3	(63)
Total comprehensive income (loss)	(1,746)	(47)	(290)
Comprehensive (income) loss attributable to noncontrolling interests	9	(8)	2
Comprehensive income (loss) attributable to Hertz Global	(1,737)	(55)	(288)
The Hertz Corporation
Net income (loss)	(1,855)	(45)	(222)
Other comprehensive income (loss):
Foreign currency translation adjustments	(19)	6	(34)
Reclassification of foreign currency items to other (income) expense, net	0	0	(1)
Net gain (loss) on pension and postretirement benefit plans	(11)	(11)	(44)
Reclassification from other comprehensive income (loss) to other (income) expense for amortization of actuarial net losses	13	11	5
Total other comprehensive income (loss) before income taxes	(17)	6	(74)
Income tax (provision) benefit related to pension and postretirement benefit plans	(4)	(1)	12
Income tax (provision) benefit related to reclassified amounts of net periodic costs on pension and postretirement benefit plans	(2)	(2)	(1)
Total other comprehensive income (loss)	(23)	3	(63)
Total comprehensive income (loss)	(1,878)	(42)	(285)
Comprehensive (income) loss attributable to noncontrolling interests	9	(8)	2
Comprehensive income (loss) attributable to Hertz Global	$ (1,869)	$ (50)	$ (283)

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

Total

Change in accounting principle

Cumulative Effect, Period of Adoption, Adjusted Balance

The Hertz Corporation

Change in accounting principle

The Hertz Corporation

Cumulative Effect, Period of Adoption, Adjusted Balance

Stockholders' Equity Attributable to Hertz Global

Change in accounting principle

Stockholders' Equity Attributable to Hertz Global

Cumulative Effect, Period of Adoption, Adjusted Balance

Stockholders' Equity Attributable to Hertz Global

The Hertz Corporation

Stockholders' Equity Attributable to Hertz Global

The Hertz Corporation

Change in accounting principle

Stockholders' Equity Attributable to Hertz Global

The Hertz Corporation

Cumulative Effect, Period of Adoption, Adjusted Balance

Preferred Stock Shares

Common Stock Shares

Cumulative Effect, Period of Adoption, Adjusted Balance

Common Stock Shares

The Hertz Corporation

Common Stock Shares

The Hertz Corporation

Cumulative Effect, Period of Adoption, Adjusted Balance

Additional Paid-In Capital

Cumulative Effect, Period of Adoption, Adjusted Balance

Additional Paid-In Capital

The Hertz Corporation

Additional Paid-In Capital

The Hertz Corporation

Cumulative Effect, Period of Adoption, Adjusted Balance

Due From Affiliate

The Hertz Corporation

Due From Affiliate

The Hertz Corporation

Cumulative Effect, Period of Adoption, Adjusted Balance

Accumulated Deficit

Change in accounting principle

Accumulated Deficit

Cumulative Effect, Period of Adoption, Adjusted Balance

Accumulated Deficit

The Hertz Corporation

Accumulated Deficit

The Hertz Corporation

Change in accounting principle

Accumulated Deficit

The Hertz Corporation

Cumulative Effect, Period of Adoption, Adjusted Balance

Accumulated Other Comprehensive Income (Loss)

Cumulative Effect, Period of Adoption, Adjusted Balance

Accumulated Other Comprehensive Income (Loss)

The Hertz Corporation

Accumulated Other Comprehensive Income (Loss)

The Hertz Corporation

Cumulative Effect, Period of Adoption, Adjusted Balance

Treasury Stock

Cumulative Effect, Period of Adoption, Adjusted Balance

Non- controlling Interests

The Hertz Corporation

Non- controlling Interests

The Hertz Corporation

Cumulative Effect, Period of Adoption, Adjusted Balance

Beginning Balance (in shares) at Dec. 31, 2017

84,000,000

100

2,000,000

Beginning Balance at Dec. 31, 2017

$ 1,520

$ (189)

$ 1,331

$ 1,520

$ (189)

$ 1,331

$ 1,520

$ (189)

$ 1,331

$ 1,520

$ (189)

$ 1,331

$ 1

$ 0

$ 2,243

$ 3,166

$ (42)

$ (506)

$ (189)

$ (695)

$ (1,486)

$ (189)

$ (1,675)

$ (118)

$ (100)

$ 0

Increase (Decrease) in Stockholders' Equity

(227)

(222)

(225)

(220)

(225)

(220)

(2)

Other comprehensive income (loss)

(10)

(63)

Net settlement on vesting of restricted stock

(3)

Reclassification of income tax effects resulting from the Tax Cuts and Jobs Act

(11)

Contributions from noncontrolling interests

Ending Balance (in shares) at Dec. 31, 2018

84,000,000

100

2,000,000

Ending Balance at Dec. 31, 2018

1,120

1,118

1,061

1,059

$ 1

$ 0

2,261

3,187

(52)

(909)

(1,884)

(192)

$ (100)

Increase (Decrease) in Stockholders' Equity

(50)

(45)

(58)

(53)

(58)

(53)

Other comprehensive income (loss)

(12)

Net settlement on vesting of restricted stock

(3)

Contributions from noncontrolling interests

Contributions from Hertz Holdings

750

Rights Offering/Stock issuance, net (in shares)

58,000,000

Rights Offering/Stock issuance, net

748

Ending Balance (in shares) at Dec. 31, 2019

142,000,000

100

2,000,000

Ending Balance at Dec. 31, 2019

1,888

1,884

1,769

1,765

$ 1

$ 0

3,024

3,955

(64)

(967)

(1,937)

(189)

$ (100)

119

Increase (Decrease) in Stockholders' Equity

(1,723)

(1,855)

(1,714)

(1,846)

(1,714)

(1,846)

(9)

Liabilities subject to compromise

(4)

^[1]

(65)

Write-off of intercompany loan

^[2]

133

Other comprehensive income (loss)

(23)

Net settlement on vesting of restricted stock

(3)

Rights Offering/Stock issuance, net (in shares)

(2)

14,000,000

Rights Offering/Stock issuance, net

$ 1

Distributions to noncontrolling interests, net

(73)

Ending Balance (in shares) at Dec. 31, 2020

156,000,000

100

2,000,000

Ending Balance at Dec. 31, 2020

$ 93

$ (5)

$ 56

$ (42)

$ 2

$ 0

$ 3,047

$ 3,953

$ 0

$ (2,681)

$ (3,783)

$ (212)

$ (100)

$ 37

[1]	As a result of the Chapter 11 Cases, a Pre-petition loan due to an affiliate was classified as liabilities subject to compromise in the accompanying consolidated balance sheet as of December 31, 2020. See Note 19, "Liabilities Subject to Compromise."
[2]	As a result of the filing of the Chapter 11 Cases, the full amount outstanding under a loan due from affiliate was deemed uncollectible and written off. See Note, 14, "Related Party Transactions."

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2020

Dec. 31, 2019

Dec. 31, 2018

Cash flows from operating activities:

Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:

$ (1,723)

$ (50)

$ (227)

Depreciation and reserves for revenue earning vehicles

2,259

2,791

2,546

Depreciation and amortization, non-vehicle

225

203

218

Amortization of deferred financing costs and debt discount (premium)

Provision for receivables allowance

(2)

Intangible and other asset impairments

(353)

(66)

213

(Gain) loss on marketable securities

(30)

(20)

(Gain) loss on sale of non-vehicle capital assets

(24)

(39)

(1)

(9)

Changes in assets and liabilities:

Non-vehicle receivables

195

(88)

(136)

Operating lease right-of-use assets

(8)

(23)

366

402

Non-vehicle accounts payable

(61)

(98)

(52)

(8)

(375)

(428)

Net cash provided by (used in) operating activities

(76)

(18)

953

2,900

2,556

Cash flows from investing activities:

Revenue earning vehicles expenditures

(5,542)

(13,714)

(12,493)

Proceeds from disposal of revenue earning vehicles

10,098

9,486

8,452

Non-vehicle capital asset expenditures

(98)

(224)

(177)

Proceeds from non-vehicle capital assets disposed of or to be disposed of

Purchases of marketable securities

(60)

Sales of marketable securities

Net cash provided by (used in) investing activities

(1)

(6)

4,591

(4,425)

(4,197)

Payment of financing costs

(75)

(53)

(47)

Early redemption premium payment

(34)

(19)

Contributions from (distributions to) noncontrolling interests

(75)

Proceeds from issuance of stock, net

Proceeds from Rights Offering, net

748

Net cash provided by (used in) financing activities

(5,372)

1,474

1,561

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

(14)

Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents during the period

218

(50)

(94)

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

1,360

1,410

1,504

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

1,507

1,360

1,410

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

^[1]

1,578

1,360

1,410

Income taxes, net of refunds

(11)

Supplemental disclosures of non-cash information:

546

575

Purchases of revenue earning vehicles included in accounts payable, net of incentives

165

169

Sales of revenue earning vehicles included in vehicle receivables

144

667

510

Sales-type capital lease of revenue earning vehicles included in other receivables

Fleet payables included in liabilities subject to compromise

Purchases of non-vehicle capital assets included in accounts payable

Revenue earning vehicles and non-vehicle capital assets acquired through capital leases

Purchases of non-vehicle capital assets included in liabilities subject to compromise

Operating lease right-of-use assets obtained in exchange for lease liabilities

152

680

The Hertz Corporation

Cash flows from operating activities:

Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:

(1,855)

(45)

(222)

Depreciation and reserves for revenue earning vehicles

2,259

2,791

2,546

Depreciation and amortization, non-vehicle

225

203

218

Amortization of deferred financing costs and debt discount (premium)

Provision for receivables allowance

(2)

Intangible and other asset impairments

(353)

(64)

213

Write-off of intercompany loan

133

(Gain) loss on marketable securities

(30)

(20)

(Gain) loss on sale of non-vehicle capital assets

(24)

(39)

(1)

(8)

Changes in assets and liabilities:

Non-vehicle receivables

195

(88)

(136)

Operating lease right-of-use assets

(8)

(23)

366

402

Non-vehicle accounts payable

(61)

(98)

(52)

(8)

(375)

(428)

Net cash provided by (used in) operating activities

(76)

(18)

956

2,907

2,563

Cash flows from investing activities:

Revenue earning vehicles expenditures

(5,542)

(13,714)

(12,493)

Proceeds from disposal of revenue earning vehicles

10,098

9,486

8,452

Non-vehicle capital asset expenditures

(98)

(224)

(177)

Proceeds from non-vehicle capital assets disposed of or to be disposed of

Purchases of marketable securities

(60)

Sales of marketable securities

Net cash provided by (used in) investing activities

(1)

(6)

4,591

(4,425)

(4,197)

Payment of financing costs

(75)

(53)

(47)

Early redemption premium payment

(34)

(19)

Advances to Hertz Holdings

(5)

(12)

(9)

Contributions from (distributions to) noncontrolling interests

(75)

Proceeds from issuance of stock, net

750

Net cash provided by (used in) financing activities

(5,403)

1,467

1,554

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

(14)

Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents during the period

190

(50)

(94)

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

1,360

1,410

1,504

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

1,479

1,360

1,410

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

^[1]

1,550

1,360

1,410

Income taxes, net of refunds

(11)

Supplemental disclosures of non-cash information:

546

575

Purchases of revenue earning vehicles included in accounts payable, net of incentives

165

169

Sales of revenue earning vehicles included in vehicle receivables

144

667

510

Sales-type capital lease of revenue earning vehicles included in other receivables

Fleet payables included in liabilities subject to compromise

Purchases of non-vehicle capital assets included in accounts payable

Revenue earning vehicles and non-vehicle capital assets acquired through capital leases

Purchases of non-vehicle capital assets included in liabilities subject to compromise

Operating lease right-of-use assets obtained in exchange for lease liabilities

152

680

Vehicle

Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:

4,546

13,013

14,009

(10,751)

(11,530)

(12,426)

Vehicle | The Hertz Corporation

335

431

379

4,546

13,013

14,009

(10,751)

(11,530)

(12,426)

Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:

335

431

379

Non-vehicle

1,812

3,016

557

(855)

(3,732)

(571)

Non-vehicle | The Hertz Corporation

109

272

286

1,812

3,016

557

(855)

(3,732)

(571)