HERTZ GLOBAL HOLDINGS INC
For the period ended Dec 31, 2023. Filed Feb 12, 2024.
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FY2023 · Filed Feb 12, 2024
Extracted filing text, with the paragraph anchors used by the comparison.
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Condensed Financial Information of Registrant Hertz Global Holdings, Inc
SCHEDULE I
PARENT COMPANY BALANCE SHEETS
| December 31, | ||
|---|---|---|
| 2023 | 2022 | |
| ASSETS | ||
| Cash and cash equivalents | $— | $— |
| Restricted cash and cash equivalents | — | — |
| Total cash and cash equivalents and restricted cash and cash equivalents | — | — |
| Non-vehicle receivables, net of allowance | — | — |
| Prepaid expenses and other assets | 1 | 1 |
| Investments in subsidiaries, net | 3,543 | 3,279 |
| Deferred income taxes, net | 3 | 3 |
| Total assets | $3,547 | $3,283 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Accrued liabilities | $— | $21 |
| Accrued taxes, net | 2 | |
| Public Warrants | 453 | 617 |
| Total liabilities | 455 | 638 |
| Stockholders' equity: | ||
| Preferred stock, $0.01 par value, no shares issued and outstanding | — | — |
| Common stock, $0.01 par value, 479,990,286 and 478,914,062 shares issued, respectively, and 305,178,242 and 323,483,178 shares outstanding, respectively | 5 | 5 |
| Additional paid-in capital | 6,405 | 6,326 |
| Retained earnings (Accumulated deficit) | 360 | (256) |
| Accumulated other comprehensive income (loss) | (248) | (294) |
| Equity before treasury stock | 6,522 | 5,781 |
| Treasury stock, at cost, 174,812,044 and 155,430,884 common shares as of December 31, 2023 and 2022, respectively | (3,430) | (3,136) |
| Total stockholders' equity | 3,092 | 2,645 |
| Total liabilities and stockholders' equity | $3,547 | $3,283 |
PARENT COMPANY STATEMENTS OF OPERATIONS
| Years Ended December 31, | |||
|---|---|---|---|
| 2023 | 2022 | 2021 | |
| Revenues | $— | $— | $— |
| Expenses: | |||
| Reorganization items, net | — | — | 164 |
| Change in fair value of Public Warrants | (163) | (704) | 627 |
| Total expenses | (163) | (704) | 791 |
| Income (loss) before income taxes and equity in earnings (losses) of subsidiaries | 163 | 704 | (791) |
| Income tax (provision) benefit | 1 | — | — |
| Equity in earnings (losses) of subsidiaries, net of tax | 452 | 1,355 | 1,157 |
| Net income (loss) | 616 | 2,059 | 366 |
| Series A Preferred Stock deemed dividends | — | — | (450) |
| Net income (loss) available to Hertz Holdings common stockholders | $616 | $2,059 | $(84) |
PARENT COMPANY STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
| Years Ended December 31, | |||
|---|---|---|---|
| 2023 | 2022 | 2021 | |
| Net income (loss) | $616 | $2,059 | $366 |
| Total other comprehensive income (loss) | 46 | (80) | (2) |
| Total comprehensive income (loss) | $662 | $1,979 | $364 |
PARENT COMPANY STATEMENTS OF CASH FLOWS
| Years Ended December 31, | |||
|---|---|---|---|
| 2023 | 2022 | 2021 | |
| Net cash provided by (used in) operating activities | $3 | $— | $— |
| Cash flows from financing activities: | |||
| Proceeds from Plan Sponsors | — | — | 2,781 |
| Proceeds from 2021 Rights Offering, net | — | — | 1,639 |
| Contributions to Hertz | — | — | (5,642) |
| Proceeds from exercises of Public Warrants | — | 3 | 77 |
| Proceeds from issuance of preferred stock, net | — | — | 1,433 |
| Distributions to common stockholders | — | — | (239) |
| Share repurchases | (315) | (2,461) | (654) |
| Repurchase of preferred stock | — | — | (1,883) |
| Dividends from Hertz | 321 | 2,477 | 2,470 |
| Other | (9) | (20) | (9) |
| Net cash provided by (used in) financing activities | (3) | (1) | (27) |
| Net increase (decrease) in cash and cash equivalents and restricted cash and cash equivalents during the period | — | (1) | (27) |
| Cash and cash equivalents and restricted cash and cash equivalents at beginning of period | — | 1 | 28 |
| Cash and cash equivalents and restricted cash and cash equivalents at end of period | $— | $— | $1 |
NOTES TO PARENT COMPANY FINANCIAL STATEMENTS
Note 1—Background and Basis of Presentation
Hertz Global Holdings, Inc. was incorporated in Delaware in 2015 and wholly owns Rental Car Intermediate Holdings, LLC which wholly owns Hertz, Hertz Global's primary operating company.
These condensed parent company financial statements reflect the activity of Hertz Holdings as the parent company to Hertz and have been prepared in accordance with Rule 12-04, Schedule 1 of Regulation S-X, as the restricted net assets of Hertz exceed 25% of the consolidated net assets of Hertz Holdings. This information should be read in conjunction with the consolidated financial statements of Hertz Global included in this 2023 Annual Report under the caption Item 8, "Financial Statements and Supplementary Data."
Note 2—Dividends
In 2023 and 2022, $321 million and $2.5 billion in cash dividends were paid by Hertz to Hertz Holdings to fund common stock repurchases, respectively. In 2021, $2.5 billion in cash dividends were paid by Hertz to Hertz Holdings to fund preferred stock and common stock share repurchases. Additionally, in December 2021, a $65 million tax-related liability for a loan due from Hertz to Hertz Holdings was settled via a non-cash distribution. There wereno non-cash dividends paid by Hertz in 2023, 2022 or 2021.
Note 3—Share Repurchases
For a discussion of the share repurchase programs of Hertz Holdings, refer to Note 16, "Equity and Earnings (Loss) Per Common Share – Hertz Global" to the Notes to its consolidated financial statements in this 2023 Annual Report under the caption Item 8, "Financial Statements and Supplementary Data." In 2023 and 2022, Hertz Holdings repurchased 19,381,160 shares and 127,980,030 shares, for $291 million and, $2.4 billion, respectively. There wereno share repurchases after December 31, 2023 through the filing of this 2023 Annual Report. These amounts are included in treasury stock in the accompanying parent-only balance sheets of Hertz Holdings as of December 31, 2023 and 2022.
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