HERTZ GLOBAL HOLDINGS, INC [HTZ] Filings

10-Q 1 htzz-20240630.htm 10-Q htzz-20240630

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

_______________________________________________________________________________

FORM 10-Q


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended		June 30, 2024
OR
☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the transition period from _________ to _________


Commission File Number	Exact Name of Registrant as Specified in its Charter, Principal Executive Office Address, Zip Code and Telephone Number					State of Incorporation	I.R.S. Employer Identification No.
001-37665	HERTZ GLOBAL HOLDINGS, INC.					Delaware	61-1770902
	8501 Williams Road,		Estero,	Florida	33928
	(239)	301-7000

001-07541	THE HERTZ CORPORATION					Delaware	13-1938568
	8501 Williams Road,		Estero,	Florida	33928
	(239)	301-7000

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which Registered

Hertz Global Holdings, Inc.

Common Stock

Par value $0.01 per share

HTZ

The Nasdaq Stock Market LLC

Hertz Global Holdings, Inc.

Warrants to purchase common stock

Each exercisable for one share of Hertz Global Holdings, Inc. common stock at an exercise price of $13.80 per share, subject to adjustment

HTZWW

The Nasdaq Stock Market LLC

The Hertz Corporation

None

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Hertz Global Holdings, Inc. Yes ☒ No ☐

The Hertz Corporation1 Yes ☐ No ☒

1As a voluntary filer, The Hertz Corporation is not subject to the filing requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934 (the "Exchange Act"). The Hertz Corporation has filed all reports pursuant to Section 13 or 15(d) of the Exchange Act during the preceding 12 months as if it was subject to such filing requirements.

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Hertz Global Holdings, Inc. Yes ☒ No ☐

The Hertz Corporation Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Hertz Global Holdings, Inc.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

☐

The Hertz Corporation

Large accelerated filer

☐

Accelerated filer

☐

Non-accelerated filer

☒

Smaller reporting company

☐

Emerging growth company

☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Hertz Global Holdings, Inc. Yes ☐ No ☒

The Hertz Corporation Yes ☐ No ☒

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes ☒ No ☐

Indicate the number of shares outstanding of each of the registrant's classes of common stock, as of the latest practicable date.

Class

Shares Outstanding as of

July 25, 2024

Hertz Global Holdings, Inc.

Common Stock,

par value $0.01 per share

306,506,797

The Hertz Corporation(1)

Common Stock,

par value $0.01 per share

100

(1)(100% owned by

Rental Car Intermediate Holdings, LLC)

Table of` Contents

HERTZ GLOBAL HOLDINGS, INC. AND SUBSIDIARIES

THE HERTZ CORPORATION AND SUBSIDIARIES

TABLE OF CONTENTS



		Page
PART I. FINANCIAL INFORMATION
ITEM 1.	Condensed Consolidated Financial Statements (Unaudited)	1
ITEM 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	39
ITEM 3.	Quantitative and Qualitative Disclosures About Market Risk	65
ITEM 4.	Controls and Procedures	65
PART II. OTHER INFORMATION
ITEM 1.	Legal Proceedings	66
ITEM 1A.	Risk Factors	66
ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds	66
ITEM 3.	Defaults Upon Senior Securities	66
ITEM 5.	Other Information	66
ITEM 6.	Exhibits	66
EXHIBIT INDEX		67
SIGNATURE		71

Table of` Contents

HERTZ GLOBAL HOLDINGS, INC. AND SUBSIDIARIES

THE HERTZ CORPORATION AND SUBSIDIARIES

PART I. FINANCIAL INFORMATION

ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Index


		Page
Hertz Global Holdings, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets as of June 3 0 , 2024 and December 31, 2023		2
Condensed Consolidated Statements of Operations for the Three and Six Months Ended Jun e 30 , 2024 and 2023		3
Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three and Six Months Ended June 30 , 2024 and 2023		4
Condensed Consolidated Statements of Changes in Stockholders' Equity for the Three and Six Months Ended June 30 , 2024 and 2023		5
Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30 , 2024 and 2023		6
The Hertz Corporation and Subsidiaries
Condensed Consolidated Balance Sheets as of June 30 , 2024 and December 31, 2023		8
Condensed Consolidated Statements of Operations for the Three and Six Months Ended June 30 , 2024 and 2023		9
Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three and Six Months Ended June 30 , 2024 and 2023		10
Condensed Consolidated Statements of Changes in Stockholder's Equity for the Three and Six Months Ended June 30 , 2024 and 2023		11
Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30 , 2024 and 2023		12
Notes to the Condensed Consolidated Financial Statements
Note 1	Background	14
Note 2	Basis of Presentation and Recently Issued Accounting Pronouncements	14
Note 3	Divestitures	15
Note 4	Revenue Earning Vehicles	16
Note 5	Goodwill and Intangible Assets, Net	17
Note 6	Debt	17
Note 7	Leases	23

Note 8	Income Tax (Provision) Benefit	23
Note 9	Public Warrants, Equity and Earnings (Loss) Per Common Share – Hertz Global	24

Note 10	Stock-Based Compensation	26
Note 11	Financial Instruments	28
Note 12	Fair Value Measurements	30
Note 13	Contingencies and Off-Balance Sheet Commitments	32
Note 14	Related Party Transactions	35
Note 15	Segment Information	35

Table of Contents

HERTZ GLOBAL HOLDINGS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

Unaudited

(In millions, except par value and share data)



	June 30, 2024		December 31, 2023
ASSETS
Cash and cash equivalents	$	568	$	764
Restricted cash and cash equivalents:
Vehicle	137		152
Non-vehicle	289		290
Total restricted cash and cash equivalents	426		442
Total cash and cash equivalents and restricted cash and cash equivalents	994		1,206
Receivables:
Vehicle	164		211
Non-vehicle, net of allowance of $53 and $47, respectively	1,103		980
Total receivables, net	1,267		1,191
Prepaid expenses and other assets	754		726
Revenue earning vehicles:
Vehicles	18,122		16,806
Less: accumulated depreciation	(2,753)		(2,155)
Total revenue earning vehicles, net	15,369		14,651
Property and equipment, net	670		671
Operating lease right-of-use assets	2,229		2,253
Intangible assets, net	2,858		2,863
Goodwill	1,044		1,044

Total assets(1)	$	25,185	$	24,605
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable:
Vehicle	$	429	$	191
Non-vehicle	566		510
Total accounts payable	995		701
Accrued liabilities	931		860
Accrued taxes, net	208		157
Debt:
Vehicle	12,774		12,242
Non-vehicle	4,595		3,449
Total debt	17,369		15,691
Public Warrants	203		453
Operating lease liabilities	2,108		2,142
Self-insured liabilities	501		471
Deferred income taxes, net	912		1,038

Total liabilities(1)	23,227		21,513
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.01 par value, no shares issued and outstanding	—		—
Common stock, $0.01 par value, 481,250,923 and 479,990,286 shares issued, respectively, and 306,438,879 and 305,178,242 shares outstanding, respectively	5		5
Treasury stock, at cost, 174,812,044 and 174,812,044 common shares, respectively	(3,430)		(3,430)
Additional paid-in capital	6,365		6,405
Retained earnings (Accumulated deficit)	(691)		360
Accumulated other comprehensive income (loss)	(291)		(248)


Total stockholders' equity	1,958		3,092
Total liabilities and stockholders' equity	$	25,185	$	24,605

(1) Hertz Global Holdings, Inc.'s consolidated total assets as of June 30, 2024 and December 31, 2023 include total assets of variable interest entities (“VIEs”) of $1.8 billion and $1.7 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, 2024 and December 31, 2023 include total liabilities of VIEs of $1.8 billion and $1.7 billion, respectively, for which the creditors of the VIEs have no recourse to Hertz Global Holdings, Inc. See "Pledges Related to Vehicle Financing" in Note 6, "Debt," for further information.

The accompanying notes are an integral part of these financial statements.

Table of Contents

HERTZ GLOBAL HOLDINGS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Unaudited

(In millions, except per share data)


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023



Revenues	$	2,353	$	2,437	$	4,433	$	4,484
Expenses:
Direct vehicle and operating	1,440		1,347		2,806		2,568
Depreciation of revenue earning vehicles and lease charges, net	1,035		329		2,004		710
Non-vehicle depreciation and amortization	41		32		73		67
Selling, general and administrative	243		285		405		506
Interest expense, net:
Vehicle	149		132		290		243
Non-vehicle	88		56		163		107
Interest expense, net	237		188		453		350

Other (income) expense, net	(5)		(2)		(3)		7
(Gain) on sale of non-vehicle capital assets	—		—		—		(162)
Change in fair value of Public Warrants	(165)		100		(251)		218
Total expenses	2,826		2,279		5,487		4,264
Income (loss) before income taxes	(473)		158		(1,054)		220
Income tax (provision) benefit	(392)		(19)		3		115
Net income (loss)	$	(865)	$	139	$	(1,051)	$	335



Weighted-average common shares outstanding:
Basic	306		314		306		318
Diluted	306		315		306		319
Earnings (loss) per common share:
Basic	$	(2.82)	$	0.44	$	(3.44)	$	1.06
Diluted	$	(2.82)	$	0.44	$	(3.44)	$	1.05

The accompanying notes are an integral part of these financial statements.

Table of Contents

HERTZ GLOBAL HOLDINGS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

Unaudited

(In millions)


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Net income (loss)	$	(865)	$	139	$	(1,051)	$	335
Other comprehensive income (loss):
Foreign currency translation adjustments	(3)		4		(43)		18







Total other comprehensive income (loss)	(3)		4		(43)		18
Total comprehensive income (loss)	$	(868)	$	143	$	(1,094)	$	353

The accompanying notes are an integral part of these financial statements.

Table of Contents

HERTZ GLOBAL HOLDINGS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY

Unaudited

(In millions)


	Preferred Stock Shares	Preferred Stock Amount		Common Stock Shares	Common Stock Amount		Additional Paid-In Capital		Retained Earnings (Accumulated deficit)		Accumulated Other Comprehensive Income (Loss)		Treasury Stock Shares	Treasury Stock Amount		Total Stockholders' Equity
Balance as of:
December 31, 2022	—	$	—	323	$	5	$	6,326	$	(256)	$	(294)	155	$	(3,136)	$	2,645
Net income (loss)	—	—		—	—		—		196		—		—	—		196
Other comprehensive income (loss)	—	—		—	—		—		—		14		—	—		14
Net settlement on vesting of restricted stock	—	—		—	—		(1)		—		—		—	—		(1)
Stock-based compensation charges	—	—		—	—		21		—		—		—	—		21

Share repurchases	—	—		(5)	—		—		—		—		6	(101)		(101)
March 31, 2023	—	—		318	5		6,346		(60)		(280)		161	(3,237)		2,774
Net income (loss)	—	—		—	—		—		139		—		—	—		139
Other comprehensive income (loss)	—	—		—	—		—		—		4		—	—		4
Stock-based compensation charges	—	—		—	—		22		—		—		—	—		22
Public Warrant exercises	—	—		—	—		1		—		—		—	—		1
Share repurchases	—	—		(6)	—		—		—		—		6	(101)		(101)
June 30, 2023	—	$	—	312	$	5	$	6,369	$	79	$	(276)	167	$	(3,338)	$	2,839

HERTZ GLOBAL HOLDINGS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY

Unaudited

(In millions)



	Preferred Stock Shares	Preferred Stock Amount		Common Stock Shares	Common Stock Amount		Additional Paid-In Capital		Retained Earnings (Accumulated deficit)		Accumulated Other Comprehensive Income (Loss)		Treasury Stock Shares	Treasury Stock Amount		Total Stockholders' Equity
Balance as of:
December 31, 2023	—	$	—	305	$	5	$	6,405	$	360	$	(248)	175	$	(3,430)	$	3,092
Net income (loss)	—	—		—	—		—		(186)		—		—	—		(186)
Other comprehensive income (loss)	—	—		—	—		—		—		(40)		—	—		(40)
Net settlement on vesting of restricted stock	—	—		1	—		(2)		—		—		—	—		(2)
Stock-based compensation charges	—	—		—	—		16		—		—		—	—		16
Stock-based compensation forfeitures(1)	—	—		—	—		(68)		—		—		—	—		(68)


March 31, 2024	—	—		306	5		6,351		174		(288)		175	(3,430)		2,812
Net income (loss)	—	—		—	—		—		(865)		—		—	—		(865)
Other comprehensive income (loss)	—	—		—	—		—		—		(3)		—	—		(3)
Net settlement on vesting of restricted stock	—	—		—	—		(2)		—		—		—	—		(2)
Stock-based compensation charges	—	—		—	—		16		—		—		—	—		16

June 30, 2024	—	$	—	306	$	5	$	6,365	$	(691)	$	(291)	175	$	(3,430)	$	1,958

(1) Represents former chief executive officer ("CEO") awards forfeited in March 2024. See also Note 10, "Stock-Based Compensation."

The accompanying notes are an integral part of these financial statements.

Table of Contents

HERTZ GLOBAL HOLDINGS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Unaudited

(In millions)


	Six Months Ended June 30,
	2024		2023
Cash flows from operating activities:
Net income (loss)	$	(1,051)	$	335
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and reserves for revenue earning vehicles, net	2,194		884
Depreciation and amortization, non-vehicle	73		67
Amortization of deferred financing costs and debt discount (premium)	33		29

Stock-based compensation charges	32		43
Stock-based compensation forfeitures	(68)		—
Provision for receivables allowance	63		40
Deferred income taxes, net	(65)		(163)

(Gain) loss on sale of non-vehicle capital assets	3		(165)
Change in fair value of Public Warrants	(251)		218
Changes in financial instruments	8		106

Other	(4)		5
Changes in assets and liabilities:
Non-vehicle receivables	(201)		(334)
Prepaid expenses and other assets	(59)		(98)
Operating lease right-of-use assets	190		165
Non-vehicle accounts payable	63		6
Accrued liabilities	71		68
Accrued taxes, net	52		56
Operating lease liabilities	(200)		(178)
Self-insured liabilities	33		(25)
Net cash provided by (used in) operating activities	916		1,059
Cash flows from investing activities:
Revenue earning vehicles expenditures	(5,627)		(6,543)
Proceeds from disposal of revenue earning vehicles	2,902		2,766
Non-vehicle capital asset expenditures	(59)		(123)
Proceeds from disposal of non-vehicle capital assets	7		176



Return of (investment in) equity investments	(3)		(1)

Net cash provided by (used in) investing activities	(2,780)		(3,725)
Cash flows from financing activities:
Proceeds from issuance of vehicle debt	1,683		4,021
Repayments of vehicle debt	(1,121)		(1,872)
Proceeds from issuance of non-vehicle debt	2,885		1,250
Repayments of non-vehicle debt	(1,735)		(759)
Payment of financing costs	(42)		(17)




Share repurchases	—		(222)

The accompanying notes are an integral part of these financial statements.

Table of Contents

HERTZ GLOBAL HOLDINGS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Unaudited

(In millions)


	Six Months Ended June 30,
	2024		2023
Other	(3)		—
Net cash provided by (used in) financing activities	1,667		2,401
Effect of foreign currency exchange rate changes on cash and cash equivalents and restricted cash and cash equivalents	(15)		13
Net increase (decrease) in cash and cash equivalents and restricted cash and cash equivalents during the period	(212)		(252)
Cash and cash equivalents and restricted cash and cash equivalents at beginning of period	1,206		1,418
Cash and cash equivalents and restricted cash and cash equivalents at end of period	$	994	$	1,166

Supplemental disclosures of cash flow information:
Cash paid during the period for:
Interest, net of amounts capitalized:
Vehicle	$	247	$	207
Non-vehicle	155		117
Income taxes, net of refunds	31		10

Supplemental disclosures of non-cash information:
Purchases of revenue earning vehicles included in accounts payable, net of incentives	$	362	$	336
Sales of revenue earning vehicles included in vehicle receivables	97		110

Purchases of non-vehicle capital assets included in accounts payable	12		19

Revenue earning vehicles and non-vehicle capital assets acquired through finance lease	47		25




Accrual for purchases of treasury shares	—		2

The accompanying notes are an integral part of these financial statements.

Table of Contents

THE HERTZ CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

Unaudited

(In millions, except par value and share data)



	June 30, 2024		December 31, 2023
ASSETS
Cash and cash equivalents	$	568	$	764
Restricted cash and cash equivalents:
Vehicle	137		152
Non-vehicle	289		290
Total restricted cash and cash equivalents	426		442
Total cash and cash equivalents and restricted cash and cash equivalents	994		1,206
Receivables:
Vehicle	164		211
Non-vehicle, net of allowance of $53 and $47, respectively	1,103		980
Total receivables, net	1,267		1,191

Prepaid expenses and other assets	754		725
Revenue earning vehicles:
Vehicles	18,122		16,806
Less: accumulated depreciation	(2,753)		(2,155)
Total revenue earning vehicles, net	15,369		14,651
Property and equipment, net	670		671
Operating lease right-of-use assets	2,229		2,253
Intangible assets, net	2,858		2,863
Goodwill	1,044		1,044

Total assets(1)	$	25,185	$	24,604
LIABILITIES AND STOCKHOLDER'S EQUITY
Accounts payable:
Vehicle	429		$	191
Non-vehicle	566		510
Total accounts payable	995		701
Accrued liabilities	931		860
Accrued taxes, net	208		155
Debt:
Vehicle	12,774		12,242
Non-vehicle	4,595		3,449
Total debt	17,369		15,691
Operating lease liabilities	2,108		2,142
Self-insured liabilities	501		471
Deferred income taxes, net	916		1,041



Total liabilities(1)	23,028		21,061
Commitments and contingencies
Stockholder's equity:
Common stock, $0.01 par value, 3,000 shares authorized and 100 shares issued and outstanding	—		—
Additional paid-in capital	4,568		4,610

Retained earnings (Accumulated deficit)	(2,120)		(819)
Accumulated other comprehensive income (loss)	(291)		(248)


Total stockholder's equity	2,157		3,543
Total liabilities and stockholder's equity	$	25,185	$	24,604

(1) The Hertz Corporation's consolidated total assets as of June 30, 2024 and December 31, 2023 include total assets of VIEs of $1.8 billion and $1.7 billion, respectively, which can only be used to settle obligations of the VIEs. The Hertz Corporation's consolidated total liabilities as of June 30, 2024 and December 31, 2023 include total liabilities of VIEs of $1.8 billion and $1.7 billion, respectively, for which the creditors of the VIEs have no recourse to The Hertz Corporation. See "Pledges Related to Vehicle Financing" in Note 6, "Debt," for further information.

The accompanying notes are an integral part of these financial statements.

Table of Contents

THE HERTZ CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Unaudited

(In millions)



	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023



Revenues	$	2,353	$	2,437	$	4,433	$	4,484
Expenses:
Direct vehicle and operating	1,440		1,347		2,806		2,568
Depreciation of revenue earning vehicles and lease charges, net	1,035		329		2,004		710
Non-vehicle depreciation and amortization	41		32		73		67
Selling, general and administrative	243		285		405		506
Interest expense, net:
Vehicle	149		132		290		243
Non-vehicle	88		56		163		107
Interest expense, net	237		188		453		350

Other (income) expense, net	(5)		(2)		(3)		7
(Gain) on sale of non-vehicle capital assets	—		—		—		(162)
Total expenses	2,991		2,179		5,738		4,046
Income (loss) before income taxes	(638)		258		(1,305)		438
Income tax (provision) benefit	(391)		(18)		4		116
Net income (loss)	$	(1,029)	$	240	$	(1,301)	$	554

The accompanying notes are an integral part of these financial statements.

Table of Contents

THE HERTZ CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

Unaudited

(In millions)


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Net income (loss)	$	(1,029)	$	240	$	(1,301)	$	554
Other comprehensive income (loss):
Foreign currency translation adjustments	(3)		4		(43)		18







Total other comprehensive income (loss)	(3)		4		(43)		18
Total comprehensive income (loss)	$	(1,032)	$	244	$	(1,344)	$	572

The accompanying notes are an integral part of these financial statements.

Table of Contents

THE HERTZ CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDER'S EQUITY

Unaudited

(In millions, except share data)


	Common Stock Shares	Common Stock Amount		Additional Paid-In Capital		Accumulated Deficit		Accumulated Other Comprehensive Income (Loss)		Total Stockholder's Equity
Balance as of:
December 31, 2022	100	$	—	$	4,844	$	(1,271)	$	(294)	$	3,279
Net income (loss)	—	—		—		314		—		314
Other comprehensive income (loss)	—	—		—		—		14		14
Stock-based compensation charges	—	—		21		—		—		21
Dividends paid to Hertz Holdings	—	—		(118)		—		—		(118)

March 31, 2023	100	—		4,747		(957)		(280)		3,510
Net income (loss)	—	—				240				240

Other comprehensive income (loss)	—	—		—		—		4		4

Stock-based compensation charges	—	—		22		—		—		22

Dividends paid to Hertz Holdings	—	—		(102)		—		—		(102)

June 30, 2023	100	$	—	$	4,667	$	(717)	$	(276)	$	3,674


	Common Stock Shares	Common Stock Amount		Additional Paid-In Capital		Accumulated Deficit		Accumulated Other Comprehensive Income (Loss)		Total Stockholder's Equity
Balance as of:
December 31, 2023	100	$	—	$	4,610	$	(819)	$	(248)	$	3,543
Net income (loss)	—	—		—		(272)		—		(272)
Other comprehensive income (loss)	—	—		—		—		(40)		(40)
Stock-based compensation charges	—	—		16		—		—		16
Stock-based compensation forfeitures(1)	—	—		(68)		—		—		(68)
Dividends paid to Hertz Holdings	—	—		(2)		—		—		(2)
March 31, 2024	100	—		4,556		(1,091)		(288)		3,177
Net income (loss)	—	—		—		(1,029)		—		(1,029)
Other comprehensive income (loss)	—	—		—		—		(3)		(3)
Stock-based compensation charges	—	—		16		—		—		16
Dividends paid to Hertz Holdings	—	—		(4)		—		—		(4)
June 30, 2024	100	$	—	$	4,568	$	(2,120)	$	(291)	$	2,157

(1) Represents former CEO awards forfeited in March 2024. See also Note 10, "Stock-Based Compensation."

The accompanying notes are an integral part of these financial statements.

Table of Contents

THE HERTZ CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Unaudited

(In millions)


	Six Months Ended June 30,
	2024		2023
Cash flows from operating activities:
Net income (loss)	$	(1,301)	$	554
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and reserves for revenue earning vehicles, net	2,194		884
Depreciation and amortization, non-vehicle	73		67
Amortization of deferred financing costs and debt discount (premium)	33		29

Stock-based compensation charges	32		43
Stock-based compensation forfeitures	(68)		—
Provision for receivables allowance	63		40
Deferred income taxes, net	(65)		(163)


(Gain) loss on sale of non-vehicle capital assets	3		(165)
Changes in financial instruments	8		106
Other	(5)		4
Changes in assets and liabilities:
Non-vehicle receivables	(201)		(334)
Prepaid expenses and other assets	(59)		(98)
Operating lease right-of-use assets	190		165
Non-vehicle accounts payable	63		6
Accrued liabilities	71		68
Accrued taxes, net	55		54
Operating lease liabilities	(200)		(178)
Self-insured liabilities	33		(25)
Net cash provided by (used in) operating activities	919		1,057
Cash flows from investing activities:
Revenue earning vehicles expenditures	(5,627)		(6,543)
Proceeds from disposal of revenue earning vehicles	2,902		2,766
Non-vehicle capital asset expenditures	(59)		(123)
Proceeds from disposal of non-vehicle capital assets	7		176



Return of (investment in) equity investments	(3)		(1)


Net cash provided by (used in) investing activities	(2,780)		(3,725)
Cash flows from financing activities:
Proceeds from issuance of vehicle debt	1,683		4,021
Repayments of vehicle debt	(1,121)		(1,872)
Proceeds from issuance of non-vehicle debt	2,885		1,250
Repayments of non-vehicle debt	(1,735)		(759)
Payment of financing costs	(42)		(17)



Dividends paid to Hertz Holdings	(6)		(220)

The accompanying notes are an integral part of these financial statements.

Table of Contents

THE HERTZ CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Unaudited

HERTZ GLOBAL HOLDINGS, INC [HTZ] Filings
HERTZ GLOBAL HOLDINGS, INC [HTZWW] Filings
10-Q	[2024-08-01]
10-Q	[2024-04-25]
10-K	[2024-02-12]
10-Q	[2023-10-26]
10-Q	[2023-07-27]
10-Q	[2023-04-27]
10-K	[2023-02-07]
10-Q	[2022-10-27]
10-Q	[2022-07-28]
10-Q	[2022-04-27]
10-K	[2022-02-23]
10-Q	[2021-10-28]
S-1	[2021-10-15]
10-Q	[2021-08-09]
10-Q	[2021-05-07]
10-K	[2021-02-26]
10-Q	[2020-11-09]
10-Q	[2020-08-10]
10-Q	[2020-05-11]
10-K	[2020-02-25]
10-Q	[2019-11-05]
10-Q	[2019-08-07]
10-Q	[2019-05-07]
10-K	[2019-02-25]
10-Q	[2018-11-08]
10-Q	[2018-08-06]
10-Q	[2018-05-07]
10-K	[2018-02-27]
10-Q	[2017-11-09]
10-Q	[2017-08-08]
10-Q	[2017-05-08]
10-K	[2017-03-06]
10-Q	[2016-11-08]
10-Q	[2016-08-08]

HERTZ GLOBAL HOLDINGS, INC [HTZ] Filings

HERTZ GLOBAL HOLDINGS, INC [HTZWW] Filings