htz-20220223
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) February 23, 2022

HERTZ GLOBAL HOLDINGS, INC.
THE HERTZ CORPORATION
(Exact name of registrant as specified in its charter)
Delaware001-3766561-1770902
Delaware001-0754113-1938568
(State or other jurisdiction of
incorporation)
(Commission File Number)(I.R.S. Employer Identification No.)
8501 Williams Road
Estero,Florida33928
239301-7000
(Address, including Zip Code, and
telephone number, including area code,
of registrant's principal executive offices)
Not Applicable
Not Applicable
(Former name, former address and
former fiscal year, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) 
Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading Symbol(s)Name of Each Exchange on which Registered
Hertz Global Holdings, Inc.Common Stockpar value $0.01 per shareHTZNasdaq Global Select
Hertz Global Holdings, Inc.  Warrants to purchase Common StockHTZWWNasdaq Global Select
The Hertz Corporation  NoneNone None

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

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. o


  





 ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On February 23, 2022, Hertz Global Holdings, Inc. (“Hertz” or the “Company”) issued a press release announcing the Company’s fourth quarter and full year 2021 financial results. A copy of the press release is attached as exhibit 99.1 hereto.


ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS.

(d) Exhibits.

Exhibit 99.1 - Press Release of Hertz Global Holdings, Inc. and The Hertz Corporation dated February 23, 2022.

Exhibit 104.1 - Cover Page Interactive Data File (Embedded within the Inline XBRL document)

Exhibit 99.1 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing.
 
























 SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, each registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
HERTZ GLOBAL HOLDINGS, INC.
THE HERTZ CORPORATION
(each, a Registrant)
By:/s/ KENNY CHEUNG
Name:Kenny Cheung
Title:Executive Vice President and Chief Financial Officer
Date:  February 24, 2022



Document


Exhibit 99.1


HERTZ GLOBAL HOLDINGS REPORTS
FOURTH QUARTER AND FULL YEAR 2021 RESULTS
____________________________________________________________________________


Quarterly revenues of $1.9 billion
Quarterly Company GAAP net loss of $260 million, or $1.52 loss per share; Adjusted net income of $426 million, primarily excluding a $643 million non-cash remeasurement expense associated with the Company’s public warrants
Record fourth quarter Adjusted Corporate EBITDA of $628 million and Adjusted Corporate EBITDA Margin of 32%
Quarterly operating cash flow of $598 million and Adjusted operating cash flow of $573 million
Full year GAAP loss per share of $0.27; Adjusted earnings per share of $4.39
Full year Company GAAP net income of $366 million
Record full year Adjusted Corporate EBITDA of $2.1 billion
Corporate liquidity of $3.2 billion at December 31st, including $2.3 billion in unrestricted cash
Company repurchased 48 million common shares since Nasdaq listing through February 17, 2022
Stephen Scherr named permanent CEO effective February 28, 2022



ESTERO, Fla, February 23, 2022 - Hertz Global Holdings, Inc. (NASDAQ: HTZ) ("Hertz", "Hertz Global" or the "Company") today reported results for its fourth quarter and full year 2021.

For the fourth quarter 2021, the Company generated total revenues of $1.9 billion, which were 78% higher than the fourth quarter of 2020, and 9% below the fourth quarter of 2019, excluding Donlen. RPU rose 31% from the fourth quarter of 2019, due to disciplined fleet management and a continued recovery in travel demand. These trends, along with strong cost performance, drove $0.91 of Adjusted earnings per share and $628 million of Adjusted Corporate EBITDA in the quarter, both of which were fourth quarter records for the Company.

For the full year 2021, the Company generated total revenues of $7.3 billion and Adjusted earnings per share of $4.39. Adjusted Corporate EBITDA was a record $2.1 billion, a margin of 29%. Liquidity at the end of 2021 was $3.2 billion after giving effect to the redemption of the Company’s preferred shares and the repurchase of 27.5 million shares of its common stock, both of which occurred during the fourth quarter.

"2021 was a transformative year for Hertz,” said Mark Fields, Hertz Interim Chief Executive Officer. “Sustained structural improvements and disciplined fleet management contributed to a strong performance across our top and bottom line, despite the challenges presented by COVID, supply chain constraints and labor shortages. We have demonstrated our resilience and ability to innovate and to make progress on playing a central role in the modern mobility ecosystem.”









1


SUMMARY RESULTS
_________________________________

Three Months Ended
December 31,
Percent Inc/(Dec)
2021 vs 2020
Percent Inc/(Dec)
2021 vs 2019
($ in millions, except earnings per share or where noted)202120202019
Hertz Global - Consolidated
Total revenues$1,949 $1,235 $2,326 58 %(16)%
Adjusted net income (loss)(a)
$426 $(187)$(34)NMNM
Adjusted diluted earnings (loss) per share(a)
$0.91 $(1.20)$(0.24)NMNM
Adjusted Corporate EBITDA(a)
$628 $(140)$54 NMNM
Adjusted Corporate EBITDA Margin(a)
32 %(11)%%
Average Vehicles (in whole units)470,900 381,927 686,697 23 %(31)%
Vehicle Utilization75 %73 %77 %
Transaction Days (in thousands)32,551 25,486 48,961 28 %(34)%
Total RPD (in dollars)(b)
$60.29 $43.12 $44.73 40 %35 %
Total RPU Per Month (in whole dollars)(b)
$1,389 $959 $1,063 45 %31 %
Depreciation Per Unit Per Month (in whole dollars)(b)
$57 $276 $272 (79)%(79)%
Americas RAC Segment
Total revenues$1,691 $899 $1,726 88 %(2)%
Adjusted EBITDA$653 $(108)$43 NMNM
Adjusted EBITDA Margin39 %(12)%%
Average Vehicles (in whole units)384,492 308,107 536,065 25 %(28)%
Vehicle Utilization77 %73 %79 %
Transaction Days (in thousands)27,215 20,754 38,851 31 %(30)%
Total RPD (in dollars)(b)
$62.10 $43.35 $44.45 43 %40 %
Total RPU Per Month (in whole dollars)(b)
$1,465 $973 $1,074 51 %36 %
Depreciation Per Unit Per Month (in whole dollars)(b)
$26 $294 $282 (91)%(91)%
International RAC Segment
Total revenues$258 $194 $421 33 %(39)%
Adjusted EBITDA$21 $(46)$(5)NMNM
Adjusted EBITDA Margin%(24)%(1)%
Average Vehicles (in whole units)86,408 73,820 150,632 17 %(43)%
Vehicle Utilization67 %70 %73 %
Transaction Days (in thousands)5,335 4,732 10,111 13 %(47)%
Total RPD (in dollars)(b)
$51.06 $42.11 $45.79 21 %12 %
Total RPU Per Month (in whole dollars)(b)
$1,051 $900 $1,024 17 %%
Depreciation Per Unit Per Month (in whole dollars)(b)
$197 $200 $234 (2)%(16)%
NM - Not meaningful
NOTE: Hertz Global - consolidated key metrics reflect global rental car operations only and exclude Donlen fleet management and leasing
(a)    Represents a non-GAAP measure. See the accompanying reconciliations included in Supplemental Schedule II for 2021 and 2020 periods.
    For 2019, see Supplemental Schedule II as reported in the Company's fourth quarter and full year 2020 press released dated February 26,
2021 which is available on Hertz' website at ir.hertz.com. Adjusted Corporate EBITDA Margin is calculated by dividing Adjusted Corporate
EBITDA by Total revenues.
(b)    Based on December 31, 2020 foreign exchange rates.


2


LIQUIDITY AND CAPITAL RESOURCES
___________________________________________________________

The Company's liquidity position totaled $3.2 billion at December 31, 2021, comprised of $2.3 billion in unrestricted cash and $925 million of availability under the First Lien RCF (as defined below).

During the fourth quarter 2021, the Company repurchased 27.5 million shares of its common stock for an aggregate price of $708 million. Between January 1, 2022 and February 17, 2022, the Company repurchased 20,589,620 shares of Hertz Global's common stock for an aggregate purchase price of $431 million. As of February 17, 2022 $1.2 billion remains available for share repurchases under the Board-approved plan.

Also during the fourth quarter, the Company repurchased all 1,500,000 outstanding shares of its Series A Preferred Stock for aggregate cash payments of $1.9 billion. The Company funded the preferred share repurchases with available cash, including proceeds from the offering of the Senior Notes Due 2026 and Senior Notes Due 2029.

The Company completed its restructuring in June 2021 with significantly lower non-vehicle debt levels relative to its pre-restructuring balance sheet. At December 31, 2021 the Company had $3.0 billion in outstanding non-vehicle debt, comprised of a $1.3 billion Term B Loan, a $245 million Term C Loan that will support the issuance of letters of credit and $1.5 billion unsecured Senior Notes Due 2026 and Senior Notes Due 2029 that were issued to fund the repurchase of Hertz Global's Series A Preferred Stock. In addition, the Company has a $1.3 billion first lien revolving credit facility ("First Lien RCF"). At December 31, 2021, the Company had $330 million of letters of credit outstanding and no borrowings outstanding under the First Lien RCF. The Company has no material non-vehicle debt maturities until 2026.


EARNINGS WEBCAST INFORMATION
__________________________________________________________

Hertz Global's live webcast and conference call to discuss its fourth quarter and full year 2021 results will be held on February 23, 2022, at 5:00 p.m. Eastern Time. The conference call will be broadcast live in listen-only mode on the company’s investor relations website at IR.Hertz.com. If you would like to ask a question, the dial in number for the conference call is (800) 924-0350; access code 4089409. Investors are encouraged to dial-in approximately 10 minutes prior to the call. A web replay will remain available on the website for approximately one year. The earnings release and related supplemental schedules containing the reconciliations of non-GAAP measures will be available on the Hertz website, IR.Hertz.com.


UNAUDITED FINANCIAL DATA, SUPPLEMENTAL SCHEDULES, NON-GAAP MEASURES AND DEFINITIONS
_________________________________________________________________________________________________________________________________________________________

The unaudited financial data of Hertz is set forth on pages 6-9 of this release. Also included are Supplemental Schedules, which are provided to present segment results, reconciliations of non-GAAP measures to their most comparable GAAP measures and other calculations.

In the second quarter of 2021, the Company revised its reportable segments to combine its Canada, Latin America and Caribbean operations with the U.S. and renamed its U.S. Rental Car segment Americas Rental Car ("Americas RAC"). As a result, those operations are no longer be reported in the International RAC segment. Additionally, in the second quarter of 2021, the Company added a financial statement line item for non-vehicle depreciation and amortization to better align with current industry practice. In the third quarter of 2021, the Company revised its calculation of Total RPD and Total RPU to include ancillary retail vehicle sales revenues to better align with current industry practice. For the revisions noted above, prior periods have been restated to conform with the revised presentation. Refer also to Supplemental Schedule VI.

Following the Supplemental Schedules, the Company provides definitions for terminology used throughout this earnings release and provides the usefulness of non-GAAP measures to investors and additional purposes for which management uses such measures.

Financial data included in this release is derived from our audited consolidated financial statements as of and for the year ended December 31, 2021, which are included in the Company's Annual Report on Form 10-K for the year ended December 31, 2021 filed with the SEC and on the Hertz website, IR.Hertz.com. The Company's historical
3


results are not necessarily indicative of the results to be expected for any future period. Financial data included in this release is qualified by reference to and should be read in conjunction with the Company's audited consolidated financial statements and related notes thereto which are included in its Annual Report on Form 10-K for the year ended December 31, 2021.


ABOUT HERTZ
________________________

The Hertz Corporation, a subsidiary of Hertz Global Holdings, Inc., operates the Hertz, Dollar and Thrifty vehicle rental brands throughout North America, Europe, the Caribbean, Latin America, Africa, the Middle East, Asia, Australia and New Zealand. The Hertz Corporation is one of the largest worldwide vehicle rental companies, and the Hertz brand is one of the most recognized globally. Additionally, The Hertz Corporation owns and operates the Firefly vehicle rental brand and Hertz 24/7 car sharing business in international markets and sells vehicles through Hertz Car Sales. For more information about The Hertz Corporation, visit www.hertz.com.


CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
________________________________________________________________________________________________________

Certain statements contained or incorporated by reference in this release, and in related comments by the Company’s management, include “forward-looking statements.” Forward-looking statements include information concerning the Company’s liquidity and its possible or assumed future results of operations, including descriptions of its business strategies. These statements often include words such as “believe,” “expect,” “project,” “potential,” “anticipate,” “intend,” “plan,” “estimate,” “seek,” “will,” “may,” “would,” “should,” “could,” “forecasts,” "guidance" or similar expressions. These statements are based on certain assumptions that the Company has made in light of its experience in the industry as well as its perceptions of historical trends, current conditions, expected future developments and other factors it believes are appropriate in these circumstances. The Company believes these judgments are reasonable, but you should understand that these statements are not guarantees of performance or results, and that the Company’s actual results could differ materially from those expressed in the forward-looking statements due to a variety of important factors, both positive and negative, that may be revised or supplemented in subsequent reports on Form 10-K, 10-Q and 8-K filed or furnished to the SEC.

Important factors that could affect the Company's actual results and cause them to differ materially from those expressed in forward-looking statements include, among other things:
the length and severity of COVID-19 and the impact on the Company's vehicle rental business as a result of travel restrictions and business closures or disruptions, as well as the impact on its employee retention and talent management strategies;
the Company's ability to purchase adequate supplies of competitively priced vehicles at a reasonable cost as a result of the continuing global semiconductor microchip manufacturing shortage (the "Chip Shortage") and other raw material supply constraints;
the impact on the value of the Company's non-program vehicles upon disposition when the Chip Shortage and other raw material supply constraints are alleviated;
the Company's ability to attract and retain key employees;
levels of travel demand, particularly business and leisure travel in the U.S. and in global markets;
significant changes in the competitive environment and the effect of competition in the Company's markets on rental volume and pricing;
occurrences that disrupt rental activity during the Company's peak periods;
the Company's ability to accurately estimate future levels of rental activity and adjust the number and mix of vehicles used in its rental operations accordingly;
the Company's ability to implement its business strategy, including its ability to implement plans to support a large scale electric vehicle fleet and to play a central role in the modern mobility ecosystem;
the Company's ability to adequately respond to changes in technology, customer demands and market competition;
4


the mix of program and non-program vehicles in the Company's fleet can lead to increased exposure to residual risk;
the Company's ability to dispose of vehicles in the used-vehicle market and use the proceeds of such sales to acquire new vehicles;
financial instability of the manufacturers of the Company's vehicles, which could impact its ability to fulfill obligations under repurchase or guaranteed depreciation programs;
an increase in the Company's vehicle costs or disruption to its rental activity due to safety recalls by the manufacturers of its vehicles;
the Company's access to third-party distribution channels and related prices, commission structures and transaction volumes;
the Company's ability to offer an excellent customer experience, retain and increase customer loyalty and market share;
the Company's ability to maintain its network of leases and vehicle rental concessions at airports in the U.S. and internationally;
the Company's ability to maintain favorable brand recognition and a coordinated branding and portfolio strategy;
a major disruption in the Company's communication or centralized information networks or a failure to maintain, upgrade and consolidate its information technology systems;
the Company's ability to prevent the misuse or theft of information it possess, including as a result of cyber security breaches and other security threats, as well as its ability to comply with privacy regulations;
risks associated with operating in many different countries, including the risk of a violation or alleged violation of applicable anti-corruption or anti-bribery laws and our ability to repatriate cash from non-U.S. affiliates without adverse tax consequences;
the Company's ability to utilize its net operating loss carryforwards;
risks relating to tax laws, including those that affect the Company's ability to deduct certain business interest expenses and offset previously-deferred tax gains, as well as any adverse determinations or rulings by tax authorities;
changes in laws, regulations, policies or other activities of governments, agencies and similar organizations, including those related to accounting principles, that affect our operations, the Company's costs or applicable tax rates;
the recoverability of the Company's goodwill and indefinite-lived intangible assets when performing impairment analysis;
costs and risks associated with potential litigation and investigations, compliance with and changes in laws and regulations and potential exposures under environmental laws and regulations; and
the availability of additional or continued sources of financing for the Company's revenue earning vehicles and to refinance its existing indebtedness.

Additional information concerning these and other factors can be found in the Company's filings with the SEC, including its Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

You should not place undue reliance on forward-looking statements. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by the foregoing cautionary statements. All such statements speak only as of the date of this release, and, except as required by law, the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
________________________________________________________________________________________________________________________________________________________
CONTACTS:
Hertz Investor Relations:Hertz Media Relations:
investorrelations@hertz.commediarelations@hertz.com
5



UNAUDITED FINANCIAL INFORMATION
____________________________________________________________

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended
December 31,
Twelve Months Ended December 31,
(In millions, except per share data)
2021202020212020
Revenues$1,949 $1,235 $7,336 $5,258 
Expenses:
Direct vehicle and operating1,065 799 3,920 3,423 
Depreciation of revenue earning vehicles and lease charges
78 397 497 2,030 
Depreciation and amortization of non-vehicle assets43 57 196 225 
Selling, general and administrative188 139 688 645 
Interest expense, net:
Vehicle41 96 284 455 
Non-vehicle28 34 185 153 
Total interest expense, net69 130 469 608 
Technology-related intangible and other asset impairments— 20 — 213 
Other (income) expense, net(1)(21)(9)
Reorganization items, net— 74 677 175 
(Gain) from the sale of a business— — (400)— 
Change in fair value of Public Warrants643 — 627 — 
Total expenses2,085 1,622 6,653 7,310 
Income (loss) before income taxes(136)(387)683 (2,052)
Income tax (provision) benefit
(125)97 (318)329 
Net income (loss)(261)(290)365 (1,723)
Net (income) loss attributable to noncontrolling interests
Net income (loss) attributable to Hertz Global(260)(289)366 (1,714)
Series A Preferred Stock deemed dividends(450)— (450)— 
Net income (loss) available to Hertz Global common stockholders$(710)$(289)$(84)$(1,714)
Weighted average number of shares outstanding:
Basic468 156 315 150 
Diluted468 156 315 150 
Earnings (loss) per share:
Basic$(1.52)$(1.85)$(0.27)$(11.44)
Diluted$(1.52)$(1.85)$(0.27)$(11.44)


6


UNAUDITED CONSOLIDATED BALANCE SHEETS
(In millions, except par value and share data)December 31, 2021December 31, 2020
ASSETS
Cash and cash equivalents$2,258 $1,096 
Restricted cash and cash equivalents:
Vehicle77 50 
Non-vehicle316 361 
Total restricted cash and cash equivalents393 411 
Total cash, cash equivalents, restricted cash and restricted cash equivalents2,651 1,507 
Receivables:
Vehicle62 164 
Non-vehicle, net of allowance of $48 and $46, respectively
696 613 
Total receivables, net758 777 
Prepaid expenses and other assets1,017 373 
Revenue earning vehicles:
Vehicles10,836 7,540 
Less: accumulated depreciation(1,610)(1,478)
Total revenue earning vehicles, net9,226 6,062 
Property and equipment, net608 666 
Operating lease right-of-use assets1,566 1,675 
Intangible assets, net2,912 2,992 
Goodwill1,045 1,045 
Assets held for sale— 1,811 
Total assets$19,783 $16,908 
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable:
Vehicle$56 $29 
Non-vehicle516 389 
Total accounts payable572 418 
Accrued liabilities863 759 
Accrued taxes, net157 121 
Debt:
Vehicle7,921 6,024 
Non-vehicle2,986 243 
Total debt10,907 6,267 
Public Warrants1,324 — 
Operating lease liabilities1,510 1,636 
Self-insured liabilities463 488 
Deferred income taxes, net1,010 730 
Total liabilities not subject to compromise16,806 10,419 
Liabilities subject to compromise— 4,965 
Liabilities held for sale— 1,431 
Total liabilities16,806 16,815 
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.01 par value, no shares issued and outstanding
— — 
Common stock, $0.01 par value, 477,233,278 and 158,235,410 shares issued, respectively, and 449,782,424 and 156,206,478 shares outstanding, respectively
Treasury stock, at cost, 27,450,854 and 2,028,932 common shares, respectively
(708)(100)
Additional paid-in capital6,209 3,047 
Retained earnings (Accumulated deficit)(2,315)(2,681)
Accumulated other comprehensive income (loss)(214)(212)
Stockholders' equity attributable to Hertz Global2,977 56 
Noncontrolling interests— 37 
Total stockholders' equity2,977 93 
Total liabilities and stockholders' equity$19,783 $16,908 

7


UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Months Ended December 31,Twelve Months Ended December 31,
(In millions)2021202020212020
Cash flows from operating activities:
Net income (loss)$(261)$(290)$365 $(1,723)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and reserves for revenue earning vehicles94 450 600 2,259 
Depreciation and amortization, non-vehicle43 57 196 225 
Amortization of deferred financing costs and debt discount (premium)13 22 122 59 
Loss on extinguishment of debt— — 
Stock-based compensation charges10 (2)
Provision for receivables allowance30 28 125 94 
Deferred income taxes, net145 (110)270 (353)
Technology-related intangible and other asset impairments— 20 — 213 
Reorganization items, net— 314 
(Gain) loss from the sale of a business— — (400)— 
(Gain) loss on marketable securities— — — — 
(Gain) loss on sale of non-vehicle capital assets— — (8)(24)
Change in fair value of Public Warrants643 — 627 — 
Other(5)
Changes in assets and liabilities:
Non-vehicle receivables13 (36)(210)195 
Prepaid expenses and other assets33 59 (20)92 
Operating lease right-of-use assets71 89 274 366 
Non-vehicle accounts payable(25)(126)(70)98 
Accrued liabilities(65)(14)(108)(61)
Accrued taxes, net(65)(48)24 (52)
Operating lease liabilities(77)(88)(291)(375)
Self-insured liabilities(4)(1)(17)(76)
Net cash provided by (used in) operating activities598 25 1,806 953 
Cash flows from investing activities:
Revenue earning vehicles expenditures(1,958)(354)(7,154)(5,542)
Proceeds from disposal of revenue earning vehicles873 1,328 2,818 10,098 
Non-vehicle capital asset expenditures(30)(9)(71)(98)
Proceeds from non-vehicle capital assets disposed of or to be disposed of(1)16 60 
Sales of marketable securities— — — 74 
Collateral payments— — (303)— 
Collateral returned in exchange for letters of credit12 — 280 — 
Proceeds from the sale of a business, net of cash sold— — 871 — 
Other— — (1)(1)
Net cash provided by (used in) investing activities(1,104)969 (3,544)4,591 
Cash flows from financing activities:
Proceeds from issuance of vehicle debt3,861 320 14,323 4,546 
Repayments of vehicle debt(3,144)(1,820)(12,607)(10,751)
Proceeds from issuance of non-vehicle debt1,505 259 4,644 1,812 
Repayments of non-vehicle debt(6)(1)(6,352)(855)
Payment of financing costs(31)(64)(185)(75)
Proceeds from Plan Sponsors— — 2,781 — 
Early redemption premium payment— — (85)— 
Proceeds from issuance of stock, net— — — 28 
Proceeds from exercises of Public Warrants77 — 77 — 
Proceeds from the issuance of preferred stock, net— — 1,433 — 
Repurchase of preferred stock(1,883)— (1,883)— 
Distributions to common stockholders— — (239)— 
Contributions from (distributions to) noncontrolling interests(13)(20)(38)(75)
Proceeds from rights offerings, net— — 1,639 — 
8


Three Months Ended December 31,Twelve Months Ended December 31,
(In millions)2021202020212020
Purchase of treasury shares(654)— (654)— 
Payments for Nasdaq listing costs(9)— (9)— 
Other— — — (2)
Net cash provided by (used in) financing activities(297)(1,326)2,845 (5,372)
Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents(12)28 (34)46 
Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents during the period(815)(304)1,073 218 
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period(a)
3,466 1,882 1,578 1,360 
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period(a)
$2,651 $1,578 $2,651 $1,578 
(a)    Amounts include cash and cash equivalents and restricted cash and cash equivalents of Donlen which were held for sale as of December 31, 2020.


9


Supplemental Schedule I
HERTZ GLOBAL HOLDINGS, INC.
CONDENSED STATEMENT OF OPERATIONS BY SEGMENT
Unaudited
______________________________________________________________________________________________________________________________________________________________________________________________________________

Three Months Ended December 31, 2021Three Months Ended December 31, 2020
(In millions)
Americas RACInternational
RAC
All other operationsCorporateHertz GlobalAmericas RACInternational
RAC
All other operationsCorporateHertz Global
Revenues$1,691 $258 $— $— $1,949 $899 $194 $142 $— $1,235 
Expenses:
Direct vehicle and operating908 154 — 1,065 649 145 (1)799 
Depreciation of revenue earning vehicles and lease charges30 48 — — 78 272 42 83 — 397 
Depreciation and amortization of non-vehicle assets36 — 43 46 57 
Selling, general and administrative90 39 — 59 188 53 35 43 139 
Interest expense, net:
Vehicle31 10 — — 41 64 20 12 — 96 
Non-vehicle(6)— — 34 28 (1)— 34 34 
Total interest expense, net25 10 — 34 69 63 20 13 34 130 
Technology-related intangible and other asset impairments— — — — — — 20 — — 20 
Other (income) expense, net(2)— — (1)— 
Reorganization items, net— — — — — — 64 74 
(Gain) from the sale of a business— — — — — — — — — — 
Change in fair value of Public Warrants— — — 643 643 — — — — — 
Total expenses1,087 256 — 742 2,085 1,092 270 114 146 1,622 
Income (loss) before income taxes$604 $$— $(742)(136)$(193)$(76)$28 $(146)(387)
Income tax (provision) benefit(125)97 
Net income (loss)(261)(290)
Net (income) loss attributable to noncontrolling interests
Net income (loss) attributable to Hertz Global(260)(289)
Series A Preferred Stock deemed dividends(450)— 
Net income (loss) attributable to Hertz Global common stockholders$(710)$(289)



10


Supplemental Schedule I (continued)
HERTZ GLOBAL HOLDINGS, INC.
CONDENSED STATEMENT OF OPERATIONS BY SEGMENT
Unaudited
______________________________________________________________________________________________________________________________________________________________________________________________________________

Twelve Months Ended December 31, 2021Twelve Months Ended December 31, 2020
(In millions)
Americas RACInternational
RAC
All other operationsCorporateHertz GlobalAmericas RACInternational
RAC
All other operationsCorporateHertz Global
Revenues$6,215 $985 $136 $— $7,336 $3,756 $872 $630 $— $5,258 
Expenses:
Direct vehicle and operating 3,302 606 3,920 2,763 647 18 (5)3,423 
Depreciation of revenue earning vehicles and lease charges343 154 — — 497 1,352 243 435 — 2,030 
Depreciation and amortization of non-vehicle assets166 16 12 196 182 19 10 14 225 
Selling, general and administrative282 136 10 260 688 283 164 19 179 645 
Interest expense, net:
Vehicle213 59 12 — 284 329 80 46 — 455 
Non-vehicle(15)196 185 (70)— (6)229 153 
Total interest expense, net198 62 13 196 469 259 80 40 229 608 
Technology-related intangible and other asset impairments— — — — — — 20 — 193 213 
Other (income) expense, net(10)(1)— (10)(21)(21)— (9)
Reorganization items, net80 12 (1)586 677 — 165 175 
(Gain) from the sale of a business— — — (400)(400)— — — — — 
Change in fair value of Public Warrants— — — 627 627 — — — — — 
Total expenses4,361 985 29 1,278 6,653 4,826 1,180 524 780 7,310 
Income (loss) before income taxes$1,854 $— $107 $(1,278)683 $(1,070)$(308)$106 $(780)(2,052)
Income tax (provision) benefit(318)329 
Net income (loss)365 (1,723)
Net (income) loss attributable to noncontrolling interests
Net income (loss) attributable to Hertz Global366 (1,714)
Series A Preferred Stock deemed dividends(450)— 
Net income (loss) attributable to Hertz Global common stockholders$(84)$(1,714)



11


Supplemental Schedule II
HERTZ GLOBAL HOLDINGS, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURE - ADJUSTED NET INCOME (LOSS), ADJUSTED DILUTED EARNINGS (LOSS) PER SHARE AND ADJUSTED CORPORATE EBITDA
Unaudited
______________________________________________________________________________________________________________________________________________________________________________________________________________
Three Months Ended December 31,Twelve Months Ended December 31,
(In millions, except per share data)2021202020212020
Adjusted Net Income (Loss) and Adjusted Diluted Earnings (Loss) Per Share:
Net income (loss) attributable to Hertz Global$(260)$(289)$366 $(1,714)
Adjustments:
Income tax provision (benefit)125 (97)318 (329)
Vehicle and non-vehicle debt-related charges(a)(n)
13 22 129 66 
Technology-related intangible and other asset impairments(b)
— 20 — 213 
Restructuring and restructuring related charges(c)
10 76 64 
Information technology and finance transformation costs(d)
(1)12 42 
Acquisition accounting-related depreciation and amortization(e)
13 43 54 
Reorganization items, net(f)
— 74 677 175 
Pre-reorganization and non-debtor financing charges(g)
— 20 42 109 
Gain from the Donlen Sale(h)
— — (400)— 
Change in fair value of Public Warrants643 — 627 — 
Other items(i)(q)
37 (45)
Adjusted pre-tax income (loss)(j)
568 (216)1,845 (1,319)
Income tax (provision) benefit on adjusted pre-tax income (loss)(k)
(142)29 (461)172 
Adjusted Net Income (Loss)$426 $(187)$1,384 $(1,147)
Weighted-average number of diluted shares outstanding468 156 315 150 
Adjusted Diluted Earnings (Loss) Per Share(l)
$0.91 $(1.20)$4.39 $(7.66)
Adjusted Corporate EBITDA:
Net income (loss) attributable to Hertz Global$(260)$(289)$366 $(1,714)
Adjustments:
Income tax provision (benefit)125 (97)318 (329)
Non-vehicle depreciation and amortization(m)
43 57 196 225 
Non-vehicle debt interest, net of interest income(n)
28 34 185 153 
Vehicle debt-related charges(a)(o)
10 18 72 55 
Technology-related intangible and other asset impairments(b)
— 20 — 213 
Restructuring and restructuring related charges(c)
10 76 64 
Information technology and finance transformation costs(d)
(1)12 42 
Reorganization items, net(f)
— 74 677 175 
Pre-reorganization and non-debtor financing charges(g)
— 20 42 109 
Gain from the Donlen Sale(h)
— — (400)— 
Change in fair value of Public Warrants643 — 627 — 
Other items(i)(p)
36 (41)12 
Adjusted Corporate EBITDA$628 $(140)$2,130 $(995)
12


Supplemental Schedule II (continued)

(a)Represents debt-related charges relating to the amortization of deferred financing costs and debt discounts and premiums.
(b)In 2020, represents a $193 million impairment of technology-related intangible assets and capitalized cloud computing implementation costs related to the Company's corporate operations ("Corporate") and a $20 million impairment of the Hertz tradename in the Company's International RAC segment.
(c)Represents charges incurred under restructuring actions as defined in U.S. GAAP. Also includes restructuring related charges such as incremental costs incurred directly supporting business transformation initiatives. For the year ended December 31, 2021, charges incurred were $36 million, $32 million and $8 million in Corporate, Americas RAC and International RAC, respectively. For the year ended December 31, 2020, charges incurred were $39 million, $24 million and $1 million in Americas RAC, Corporate and International RAC, respectively.
(d)Represents costs associated with the Company’s information technology and finance transformation programs, both of which are multi-year initiatives to upgrade and modernize the Company’s systems and processes. These costs relate primarily to Corporate.
(e)Represents incremental expense associated with the amortization of other intangible assets and depreciation of property and equipment relating to acquisition accounting.
(f)Represents charges incurred associated with the Reorganization and emergence from Chapter 11, including professional fees. The charges relate primarily to Corporate.
Three Months Ended
December 31,
Twelve Months Ended
December 31,
(In millions)2021202020212020
Professional fees and other bankruptcy related costs$— $74 $257 $175 
Loss on extinguishment of debt— — 191 — 
Backstop fee— — 164 — 
Breakup fee— — 77 — 
Contract settlements— — 25 — 
Cancellation of share-based compensation grants— — (10)— 
Net gain on settlement of liabilities subject to compromise— — (22)— 
Other, net— — (5)— 
Reorganization items, net$— $74 $677 $175 

(g)    Represents charges incurred prior to the filing of the Chapter 11 Cases comprised of preparation charges for the Reorganization, such as professional fees. Also includes, certain non-debtor financing and professional fee charges. For the year ended December 31, 2021, charges incurred were $17 million, $17 million, $6 million and $2 million in Corporate, Americas RAC, International RAC and all other operations, respectively. For the three months ended December 31, 2020, charges incurred were $11 million, $10 million, $2 million and $(3) million in Americas RAC, Corporate, all other operations and International RAC, respectively, and for the year ended December 31, 2020 charges incurred were $46 million, $44 million, $13 million and $6 million in Corporate, Americas RAC, International RAC and all other operations, respectively.
(h)    Represents the gain from the sale of the Company's Donlen business on March 30, 2021, primarily associated with Corporate.
(i)    Represents miscellaneous items. For 2021, includes $100 million associated with the suspension of depreciation during the first quarter for the Donlen business while classified as held for sale in all other operations, partially offset by $17 million for certain professional fees primarily associated with Corporate, $14 million of charges related to the settlement of bankruptcy claims primarily associated with Corporate, charges for a multiemployer pension plan withdrawal liability recorded in Corporate and letter of credit fees recorded primarily in Corporate. For 2020, includes a $20 million gain on the sale of non-vehicle capital assets in Americas RAC, which was recorded in the first quarter, partially offset by charges of $18 million for losses associated with certain vehicle damages which were recorded in the second quarter in Americas RAC.
13


Supplemental Schedule II (continued)

(j)    Adjustments by caption on a pre-tax basis were as follows:
Increase (decrease) to expensesThree Months Ended
December 31,
Twelve Months Ended
December 31,
(In millions)2021202020212020
Direct vehicle and operating$(12)$(4)$33 $(87)
Selling, general and administrative(25)(90)(129)
Interest expense, net:
Vehicle(10)(32)(91)(105)
Non-vehicle(3)(4)(57)(11)
Total interest expense, net(13)(36)(148)(116)
Intangible and other asset impairments— (20)— (213)
Other income (expense), net(37)(11)(52)(4)
Reorganization items, net— (74)(677)(175)
Gain from the Donlen Sale— — 400 — 
Change in fair value of Public Warrants(643)— (627)— 
Total adjustments$(703)$(170)$(1,161)$(724)

(k)    Derived utilizing a combined statutory rate of 25% and 13% for the periods ended December 31, 2021 and 2020, respectively, applied to the respective Adjusted Pre-tax Income (Loss).
(l)    Adjustments used to reconcile diluted earnings (loss) per share on a GAAP basis to Adjusted Diluted Earnings (Loss) Per Share are comprised of the same adjustments, inclusive of the tax impact, used to reconcile net income (loss) to Adjusted Net Income (Loss) divided by the weighted-average diluted shares outstanding during the period.
(m)    Non-vehicle depreciation and amortization expense for Americas RAC, International RAC and Corporate for the three months ended December 31, 2021 was $36 million, $4 million and $3 million, respectively. For the three months ended December 31, 2020 was $46 million, $5 million, $2 million and $4 million for Americas RAC, International RAC, All other operations and Corporate, respectively. Non-vehicle depreciation and amortization for Americas RAC, International RAC, All other operations and Corporate for the twelve months ended December 31, 2021 were $166 million, $16 million, $2 million and $12 million, respectively, and for the twelve months ended December 31, 2020 were $182 million, $19 million, $10 million and $14 million, respectively.
(n)    In 2021, includes $8 million of loss on extinguishment of debt associated with the payoff and termination of non-vehicle debt in Corporate in the second quarter of 2021.
(o)    Vehicle debt-related charges for Americas RAC and International RAC for the three months ended December 31, 2021 were $6 million and $4 million, respectively. For the three months ended December 31, 2020 vehicle debt-related charges for Americas RAC, International RAC and All other operations were $12 million, $4 million and $2 million, respectively. Vehicle debt-related charges for Americas RAC, International RAC and All other operations for the twelve months ended December 31, 2021 were $53 million, $16 million and $2 million, respectively, and for the twelve months ended December 31, 2020 were $36 million, $15 million and $4 million, respectively.
(p)    Also includes an adjustment for non-cash stock-based compensation charges in Corporate.
(q)    Also includes letter of credit fees recorded in the second half of 2021 in Corporate.
14


Supplemental Schedule III
HERTZ GLOBAL HOLDINGS, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURE - ADJUSTED OPERATING CASH FLOW
AND ADJUSTED FREE CASH FLOW
Unaudited
________________________________________________________________________________________________________________________________________________________

Three Months Ended December 31,Twelve Months Ended December 31,
(In millions)20212021
ADJUSTED OPERATING CASH FLOW AND ADJUSTED FREE CASH FLOW:
Net cash provided by (used in) operating activities$598 $1,806 
Depreciation and reserves for revenue earning vehicles(94)(600)
Bankruptcy related payments - post emergence69 257 
Adjusted operating cash flow573 1,463 
Non-vehicle capital asset expenditures, net(31)(55)
Adjusted operating cash flow before vehicle investment542 1,408 
Net fleet growth after financing(32)(1,980)
Noncontrolling interests(1)(26)
Adjusted free cash flow$509 $(598)
CALCULATION OF NET FLEET GROWTH AFTER FINANCING:
Revenue earning vehicles expenditures
$(1,958)$(7,154)
Proceeds from disposal of revenue earning vehicles
873 2,818 
Revenue earning vehicles capital expenditures, net(1,085)(4,336)
Depreciation and reserves for revenue earning vehicles
94 600 
Financing activity related to vehicles:
Borrowings3,861 14,323 
Payments(3,144)(12,607)
Restricted cash changes, vehicle(a)
242 40 
Net financing activity related to vehicles959 1,756 
Net fleet growth after financing$(32)$(1,980)
Note:    Adjusted free cash flow for the fourth quarter and full year 2020 are not shown in the above table because they are not comparable to the corresponding periods in 2021 due to the Company's restructuring.
(a)    The twelve months ended December 31, 2021 includes a $68 million impact related to restricted cash classified as held for sale as of December 31, 2020.

15


Supplemental Schedule III (continued)
HERTZ GLOBAL HOLDINGS, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURE - ADJUSTED OPERATING CASH FLOW
AND ADJUSTED FREE CASH FLOW
Unaudited
________________________________________________________________________________________________________________________________________________________

Three Months Ended December 31,Twelve Months Ended December 31,
(In millions)20192019
ADJUSTED OPERATING CASH FLOW AND ADJUSTED FREE CASH FLOW:
Net cash provided by (used in) operating activities$667 $2,900 
Depreciation and reserves for revenue earning vehicles(735)(2,791)
Bankruptcy related payments - post emergence— — 
Adjusted operating cash flow(68)109 
Non-vehicle capital asset expenditures, net(48)(197)
Adjusted operating cash flow before vehicle investment(116)(88)
Net fleet growth after financing564 (161)
Noncontrolling interests(5)47 
Adjusted free cash flow$443 $(202)
CALCULATION OF NET FLEET GROWTH AFTER FINANCING:
Revenue earning vehicles expenditures
$(2,178)$(13,714)
Proceeds from disposal of revenue earning vehicles
3,293 9,486 
Revenue earning vehicles capital expenditures, net1,115 (4,228)
Depreciation and reserves for revenue earning vehicles
735 2,791 
Financing activity related to vehicles:
Borrowings1,974 13,013 
Payments(2,992)(11,530)
Restricted cash changes, vehicle(a)
(268)(207)
Net financing activity related to vehicles(1,286)1,276 
Net fleet growth after financing$564 $(161)


16


Supplemental Schedule IV
HERTZ GLOBAL HOLDINGS, INC.
NET DEBT CALCULATION
Unaudited
_____________________________________________________________________________________________________________________

As of December 31, 2021
(In millions)VehicleNon-VehicleTotal
Term loans$— $1,539 $1,539 
Senior notes— 1,500 1,500 
U.S. vehicle financing (HVF III)7,001 — 7,001 
International vehicle financing (Various)860 — 860 
Other debt93 16 109 
Debt issue costs, discounts and premiums(33)(69)(102)
Debt as reported in the balance sheet7,921 2,986 10,907 
Add:
Debt issue costs, discounts and premiums33 69 102 
Less:
Cash and cash equivalents— 2,258 2,258 
Restricted cash77 — 77 
Restricted cash and restricted cash equivalents associated with Term C Loan— 245 245 
Net Debt$7,877 $552 $8,429 
Corporate leverage ratio(a)
0.3x
Note: Net Debt at December 31, 2020 is not shown in the above table because it is not comparable to Net Debt at December 31, 2021 due to the Company's restructuring.
(a)    Corporate leverage ratio is calculated as non-vehicle net debt divided by Adjusted Corporate EBITDA.
17


Supplemental Schedule V
HERTZ GLOBAL HOLDINGS, INC.
KEY METRICS CALCULATIONS
REVENUE, UTILIZATION AND DEPRECIATION
Unaudited
________________________________________________________________________________________________________________________________________________________

Global RAC
Three Months Ended
December 31,
Percent Inc/(Dec)Twelve Months Ended December 31,Percent Inc/(Dec)
($ in millions, except where noted)2021202020212020
Total RPD
Revenues$1,949$1,093$7,200$4,628
Foreign currency adjustment(a)
1462270
Total Revenues - adjusted for foreign currency$1,963$1,099$7,222$4,698
Transaction Days (in thousands)32,55125,486120,573107,299
Total RPD (in dollars)(c)
$60.29$43.1240 %$59.90$43.7837 %
Total Revenue Per Unit Per Month
Total Revenues - adjusted for foreign currency$1,963$1,099$7,222$4,698
Average Vehicles (in whole units)470,900381,927433,290540,340
Total revenue per unit (in whole dollars)$4,168$2,877$16,668$8,694
Number of months in period (in whole units)331212
Total RPU Per Month (in whole dollars)(c)
$1,389$95945 %$1,389$72492 %
Vehicle Utilization
Transaction Days (in thousands)32,55125,486120,573107,299
Average Vehicles (in whole units)470,900381,927433,290540,340
Number of days in period (in whole units)9292365366
Available Car Days (in thousands)43,32735,137158,310197,764
Vehicle Utilization(b)
75%73%76%54%
Depreciation Per Unit Per Month
Depreciation of revenue earning vehicles and lease charges
$78$315$497$1,595
Foreign currency adjustment(a) 
31522
Adjusted depreciation of revenue earning vehicles and lease charges
$81$316$502$1,617
Average Vehicles (in whole units)470,900381,927433,290540,340
Adjusted depreciation of revenue earning vehicles and lease charges divided by Average Vehicles (in whole dollars)
$171$829$1,159$2,993
Number of months in period (in whole units)331212
Depreciation Per Unit Per Month (in whole dollars)
$57$276(79)%$97$249(61)%
Note: Global RAC represents Americas RAC and International RAC segment information on a combined basis and excludes Corporate and the Company's former Donlen leasing operations which were sold on March 30, 2021.
(a)Based on December 31, 2020 foreign exchange rates.
(b)Calculated as Transaction Days divided by Available Car Days.
(c)Effective during the third quarter of 2021, the Company revised its calculation of Total RPD and Total RPU to include ancillary retail vehicle sales revenues.

18


Supplemental Schedule V (continued)
HERTZ GLOBAL HOLDINGS, INC.
KEY METRICS CALCULATIONS
REVENUE, UTILIZATION AND DEPRECIATION
Unaudited
________________________________________________________________________________________________________________________________________________________

Americas RAC
Three Months Ended
December 31,
Percent Inc/(Dec)Twelve Months Ended December 31,Percent Inc/(Dec)
($ in millions, except where noted)2021202020212020
Total RPD
Revenues$1,691$899$6,215$3,756
Foreign currency adjustment(a)
(1)1(3)3
Total Revenues - adjusted for foreign currency$1,690$900$6,212$3,759
Transaction Days (in thousands)27,21520,754100,08585,016
Total RPD (in dollars)(c)
$62.10$43.3543 %$62.07$44.2240 %
Total Revenue Per Unit Per Month
Total Revenues - adjusted for foreign currency$1,690$900$6,212$3,759
Average Vehicles (in whole units)384,492308,107355,647437,547
Total revenue per unit (in whole dollars)$4,396$2,920$17,467$8,591
Number of months in period (in whole units)331212
Total RPU Per Month (in whole dollars)(c)
$1,465$97351 %$1,456$716NM
Vehicle Utilization
Transaction Days (in thousands)27,21520,754100,08585,016
Average Vehicles (in whole units)384,492308,107355,647437,547
Number of days in period (in whole units)9292365366
Available Car Days (in thousands)35,37728,347129,944160,142
Vehicle Utilization(b)
77%73 %77 %53 %
Depreciation Per Unit Per Month
Depreciation of revenue earning vehicles and lease charges
$30$272$343$1,352
Foreign currency adjustment(a) 
1
Adjusted depreciation of revenue earning vehicles and lease charges
$30$