Herc (HRI) 10-Q22 Oct 242024 Q3 Quarterly reportFinancial data

Company Profile

Cover

Cover - shares	9 Months Ended
Cover - shares	Sep. 30, 2024	Oct. 18, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2024
Document Transition Report	false
Entity File Number	001-33139
Entity Registrant Name	HERC HOLDINGS INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	20-3530539
Entity Address, Address Line One	27500 Riverview Center Blvd.
Entity Address, City or Town	Bonita Springs
Entity Address, State or Province	FL
Entity Address, Postal Zip Code	34134
City Area Code	239
Local Phone Number	301-1000
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	HRI
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		28,404,593
Entity Central Index Key	0001364479
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q3
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Sep. 30, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 142	$ 71
Receivables, net of allowances of $21 and $20, respectively	623	563
Other current assets	66	77
Assets held for sale	20	21
Total current assets	851	732
Rental equipment, net	4,283	3,831
Property and equipment, net	541	465
Right-of-use lease assets	842	665
Intangible assets, net	572	467
Goodwill	659	483
Other long-term assets	9	10
Assets held for sale	415	408
Total assets	8,172	7,061
Current liabilities:
Current maturities of long-term debt and financing obligations	20	19
Current maturities of operating lease liabilities	38	37
Accounts payable	360	212
Accrued liabilities	258	221
Liabilities held for sale	21	19
Total current liabilities	697	508
Long-term debt, net	4,163	3,673
Financing obligations, net	101	104
Operating lease liabilities	830	646
Deferred tax liabilities	799	743
Other long term liabilities	44	46
Liabilities held for sale	61	68
Total liabilities	6,695	5,788
Commitments and contingencies (Note 13)
Equity:
Preferred stock, $0.01 par value, 13.3 shares authorized, no shares issued and outstanding	0	0
Common stock, $0.01 par value, 133.3 shares authorized, 33.3 and 33.1 shares issued and 28.4 and 28.2 shares outstanding	0	0
Additional paid-in capital	1,829	1,820
Retained earnings	698	498
Accumulated other comprehensive loss	(123)	(118)
Treasury stock, at cost, 4900000 shares and 4900000 shares	(927)	(927)
Total equity	1,477	1,273
Total liabilities and equity	$ 8,172	$ 7,061

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions	Sep. 30, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Receivables, allowance for doubtful accounts	$ 21	$ 20
Preferred stock, par value (in USD per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	13,300,000	13,300,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in USD per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	133,300,000	133,300,000
Common stock, shares issued (in shares)	33,300,000	33,100,000
Common stock, shares outstanding (in shares)	28,400,000	28,200,000
Treasury stock, shares (in shares)	4,900,000	4,900,000

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Revenues:
Total revenues	$ 965	$ 908	$ 2,617	$ 2,450
Expenses:
Direct operating	334	288	967	851
Depreciation of rental equipment	174	167	499	480
Cost of sales of rental equipment	66	99	157	201
Cost of sales of new equipment, parts and supplies	6	7	18	19
Selling, general and administrative	123	115	358	332
Non-rental depreciation and amortization	33	29	92	83
Interest expense, net	69	60	193	162
Other expense (income), net	0	(3)	(1)	(2)
Total expenses	805	762	2,283	2,126
Income before income taxes	160	146	334	324
Income tax provision	(38)	(33)	(77)	(68)
Net income	$ 122	$ 113	$ 257	$ 256
Weighted average shares outstanding:
Basic (in shares)	28.4	28.3	28.4	28.5
Diluted (in shares)	28.5	28.5	28.5	28.8
Earnings per share:
Basic (in USD per share)	$ 4.30	$ 3.99	$ 9.05	$ 8.98
Diluted (in USD per share)	$ 4.28	$ 3.96	$ 9.02	$ 8.89
Equipment rental
Revenues:
Total revenues	$ 866	$ 765	$ 2,350	$ 2,121
Sales of rental equipment
Revenues:
Total revenues	81	124	215	278
Sales of new equipment, parts and supplies
Revenues:
Total revenues	9	11	28	29
Service and other revenue
Revenues:
Total revenues	$ 9	$ 8	$ 24	$ 22

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Statement of Comprehensive Income [Abstract]
Net income	$ 122	$ 113	$ 257	$ 256
Other comprehensive income (loss):
Foreign currency translation adjustments	3	(6)	(6)	0
Pension and postretirement benefit liability adjustments:
Amortization of net losses included in net periodic pension cost	1	0	1	1
Total other comprehensive income (loss)	4	(6)	(5)	1
Total comprehensive income	$ 126	$ 107	$ 252	$ 257

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) shares in Millions, $ in Millions	Total	Common Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Treasury Stock
Beginning balance (in shares) at Dec. 31, 2022		28.9
Balance, beginning at Dec. 31, 2022	$ 1,108	$ 0	$ 1,820	$ 224	$ (129)	$ (807)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	67			67
Other comprehensive (loss) income	2				2
Stock-based compensation charges	4		4
Dividends declared	(19)			(19)
Net settlement on vesting of equity awards (in shares)		0.3
Net settlement on vesting of equity awards	(25)		(25)
Employee stock purchase plan	1		1
Exercise of stock options	1		1
Repurchase of common stock (in shares)		(0.4)
Repurchase of common stock	(52)					(52)
Ending balance (in shares) at Mar. 31, 2023		28.8
Balance, ending at Mar. 31, 2023	1,087	$ 0	1,801	272	(127)	(859)
Beginning balance (in shares) at Dec. 31, 2022		28.9
Balance, beginning at Dec. 31, 2022	1,108	$ 0	1,820	224	(129)	(807)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	256
Other comprehensive (loss) income	1
Ending balance (in shares) at Sep. 30, 2023		28.3
Balance, ending at Sep. 30, 2023	1,199	$ 0	1,816	425	(128)	(914)
Beginning balance (in shares) at Mar. 31, 2023		28.8
Balance, beginning at Mar. 31, 2023	1,087	$ 0	1,801	272	(127)	(859)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	76			76
Other comprehensive (loss) income	5				5
Stock-based compensation charges	5		5
Dividends declared	(18)			(18)
Employee stock purchase plan	1		1
Exercise of stock options	1		1
Repurchase of common stock (in shares)		(0.5)
Repurchase of common stock	(55)					(55)
Ending balance (in shares) at Jun. 30, 2023		28.3
Balance, ending at Jun. 30, 2023	1,102	$ 0	1,808	330	(122)	(914)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	113			113
Other comprehensive (loss) income	(6)				(6)
Stock-based compensation charges	6		6
Dividends declared	(18)			(18)
Employee stock purchase plan	1		1
Exercise of stock options	1		1
Ending balance (in shares) at Sep. 30, 2023		28.3
Balance, ending at Sep. 30, 2023	$ 1,199	$ 0	1,816	425	(128)	(914)
Beginning balance (in shares) at Dec. 31, 2023	28.2	28.2
Balance, beginning at Dec. 31, 2023	$ 1,273	$ 0	1,820	498	(118)	(927)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	65			65
Other comprehensive (loss) income	(6)				(6)
Stock-based compensation charges	5		5
Dividends declared	(19)			(19)
Net settlement on vesting of equity awards (in shares)		0.1
Net settlement on vesting of equity awards	(12)		(12)
Employee stock purchase plan	1		1
Exercise of stock options	1		1
Ending balance (in shares) at Mar. 31, 2024		28.3
Balance, ending at Mar. 31, 2024	$ 1,308	$ 0	1,815	544	(124)	(927)
Beginning balance (in shares) at Dec. 31, 2023	28.2	28.2
Balance, beginning at Dec. 31, 2023	$ 1,273	$ 0	1,820	498	(118)	(927)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	257
Other comprehensive (loss) income	$ (5)				(5)
Ending balance (in shares) at Sep. 30, 2024	28.4	28.4
Balance, ending at Sep. 30, 2024	$ 1,477	$ 0	1,829	698	(123)	(927)
Beginning balance (in shares) at Mar. 31, 2024		28.3
Balance, beginning at Mar. 31, 2024	1,308	$ 0	1,815	544	(124)	(927)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	70			70
Other comprehensive (loss) income	(3)				(3)
Stock-based compensation charges	4		4
Dividends declared	(19)			(19)
Employee stock purchase plan	1		1
Exercise of stock options (in shares)		0.1
Exercise of stock options	1		1
Ending balance (in shares) at Jun. 30, 2024		28.4
Balance, ending at Jun. 30, 2024	1,362	$ 0	1,821	595	(127)	(927)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	122			122
Other comprehensive (loss) income	4				4
Stock-based compensation charges	7		7
Dividends declared	(19)			(19)
Employee stock purchase plan	$ 1		1
Ending balance (in shares) at Sep. 30, 2024	28.4	28.4
Balance, ending at Sep. 30, 2024	$ 1,477	$ 0	$ 1,829	$ 698	$ (123)	$ (927)

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - $ / shares	3 Months Ended
	Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023
Statement of Stockholders' Equity [Abstract]
Dividends declared (in USD per share)	$ 0.665	$ 0.665	$ 0.665	$ 0.6325	$ 0.6325	$ 0.6325

CONDENSED CONSOLIDATED STATEM_5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Cash flows from operating activities:
Net income	$ 257	$ 256
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of rental equipment	499	480
Depreciation of property and equipment	60	53
Amortization of intangible assets	32	30
Amortization of deferred debt and financing obligations costs	3	3
Stock-based compensation charges	16	15
Provision for receivables allowances	48	49
Deferred taxes	57	41
Gain on sale of rental equipment	(58)	(77)
Other	10	1
Changes in assets and liabilities:
Receivables	(76)	(79)
Other assets	(5)	(3)
Accounts payable	17	10
Accrued liabilities and other long-term liabilities	34	17
Net cash provided by operating activities	894	796
Cash flows from investing activities:
Rental equipment expenditures	(753)	(1,100)
Proceeds from disposal of rental equipment	198	231
Non-rental capital expenditures	(127)	(119)
Proceeds from disposal of property and equipment	6	11
Acquisitions, net of cash acquired	(567)	(332)
Other investing activities	0	(15)
Net cash used in investing activities	(1,243)	(1,324)
Cash flows from financing activities:
Proceeds from issuance of long-term debt	800	0
Proceeds from revolving lines of credit and securitization	1,530	1,755
Repayments on revolving lines of credit and securitization	(1,821)	(1,016)
Principal payments under finance lease and financing obligations	(15)	(12)
Payment of debt issuance costs	(9)	0
Dividends paid	(58)	(56)
Net settlement on vesting of equity awards	(12)	(25)
Proceeds from employee stock purchase plan	3	3
Proceeds from exercise of stock options	2	3
Repurchase of common stock	0	(107)
Net cash provided by financing activities	420	545
Effect of foreign exchange rate changes on cash and cash equivalents	0	0
Net change in cash and cash equivalents during the period	71	17
Cash and cash equivalents at beginning of period	71	54
Cash and cash equivalents at end of period	142	71
Supplemental disclosure of cash flow information:
Cash paid for interest	194	175
Cash paid for income taxes, net	12	21
Supplemental disclosure of non-cash investing activity:
Purchases of rental equipment in accounts payable	126	0
Non-rental capital expenditures in accounts payable	5	0
Disposal of rental equipment in accounts receivable	4	0
Supplemental disclosure of non-cash investing and financing activity:
Equipment acquired through finance lease	$ 4	$ 15

Organization and Description of

Organization and Description of Business	9 Months Ended
Organization and Description of Business	Sep. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Description of Business	Organization and Description of Business Herc Holdings Inc. ("we," "us," "our," "Herc Holdings," or "the Company") is one of the leading equipment rental suppliers with 439 locations in North America as of September 30, 2024. The Company conducts substantially all of its operations through subsidiaries, including Herc Rentals Inc. ("Herc"). With over 59 years of experience, the Company is a full-line equipment rental supplier offering a broad portfolio of equipment for rent. In addition to its principal business of equipment rental, the Company sells used equipment and contractor supplies such as construction consumables, tools, small equipment and safety supplies; provides repair, maintenance, equipment management services and safety training to certain of its customers; offers equipment re-rental services and provides on-site support to its customers; and provides ancillary services such as equipment transport, rental protection, cleaning, refueling and labor. The Company's fleet includes aerial, earthmoving, material handling, trucks and trailers, air compressors, compaction, lighting, trench shoring, and studio and production equipment. The Company's equipment rental business is supported by ProSolutions®, its industry-specific solutions-based services, which includes power generation, climate control, remediation and restoration, and pumps, and its ProContractor professional grade tools.

Basis of Presentation and Signi

Basis of Presentation and Significant Accounting Policies	9 Months Ended
Basis of Presentation and Significant Accounting Policies	Sep. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation and Significant Accounting Policies	Basis of Presentation and Significant Accounting Policies Basis of Presentation The Company prepares its condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP"). In the opinion of management, the condensed consolidated financial statements reflect all adjustments of a normal recurring nature that are necessary for a fair statement of the results for the interim periods presented. Interim results are not necessarily indicative of results for a full year. The year-end condensed consolidated balance sheet data was derived from audited financial statements, however, these condensed consolidated financial statements do not include all of the disclosures required for complete annual financial statements and, accordingly, certain information, footnotes and disclosures normally included in annual financial statements, prepared in accordance with U.S. GAAP, have been condensed or omitted in accordance with Securities and Exchange Commission ("SEC") rules and regulations. The Company believes that the disclosures made are adequate to make the information not misleading. Accordingly, the condensed consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on February 13, 2024. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and footnotes. Actual results could differ materially from those estimates. Significant estimates inherent in the preparation of the condensed consolidated financial statements include receivables allowances, depreciation of rental equipment, the recoverability of long-lived assets, useful lives and impairment of long-lived tangible and intangible assets including goodwill and trade name, valuation of acquired intangible assets, pension and postretirement benefits, valuation of stock-based compensation, reserves for litigation and other contingencies and accounting for income taxes, among others. Principles of Consolidation The condensed consolidated financial statements include the accounts of Herc Holdings and its wholly owned subsidiaries. In the event that the Company is a primary beneficiary of a variable interest entity, the assets, liabilities and results of operations of the variable interest entity are included in the Company's condensed consolidated financial statements. The Company accounts for investments in joint ventures using the equity method when it has significant influence but not control and is not the primary beneficiary. All significant intercompany transactions have been eliminated in consolidation. Recently Issued Accounting Pronouncements and Disclosure Rules Not Yet Adopted Improvements to Reportable Segment Disclosures In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures” (“ASU 2023-07”), which is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The guidance is to be applied retrospectively to all prior periods presented in the financial statements. Upon transition, the segment expense categories and amounts disclosed in the prior periods should be based on the significant segment expense categories identified and disclosed in the period of adoption. The Company is currently evaluating the potential impact of adopting this new guidance on its consolidated financial statements and related disclosures. Improvements to Income Tax Disclosures In December 2023, the FASB issued Accounting Standards Update No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (“ASU 2023-09”), which modifies the rules on income tax disclosures to require entities to disclose (1) specific categories in the rate reconciliation, (2) the income or loss from continuing operations before income tax expense or benefit (separated between domestic and foreign) and (3) income tax expense or benefit from continuing operations (separated by federal, state and foreign). ASU 2023-09 also requires entities to disclose their income tax payments to international, federal, state and local jurisdictions, among other changes. The guidance is effective for annual periods beginning after December 15, 2024. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. ASU 2023-09 should be applied on a prospective basis, but retrospective application is permitted. The Company is currently evaluating the potential impact of adopting this new guidance on its consolidated financial statements and related disclosures. Climate-Related Disclosure Rules In March 2024, the SEC issued final climate-related disclosure rules that will require disclosure of material climate-related risks and material direct greenhouse gas emissions from operations owned or controlled (Scope 1) and material indirect greenhouse gas emissions from purchased energy consumed in owned or controlled operations (Scope 2). Additionally, the rules require disclosure in the notes to the financial statements of the effects of severe weather events and other natural conditions, subject to certain materiality thresholds. The disclosure requirements will begin phasing in for annual periods beginning in calendar year 2025. Currently, it is uncertain whether the SEC's new climate-related disclosure rules will withstand pending and future legal challenges. In April 2024, the SEC issued an order staying implementation of the new disclosure regulations pending the resolution of certain challenges. The Company is currently in the process of analyzing the impact of the rules on its related disclosures.

Revenue Recognition

Revenue Recognition	9 Months Ended
Revenue Recognition	Sep. 30, 2024
Revenue from Contract with Customer [Abstract]
Revenue Recognition	Revenue Recognition The Company is principally engaged in the business of renting equipment. Ancillary to the Company’s principal equipment rental business, the Company also sells used rental equipment, new equipment and parts and supplies and offers certain services to support its customers. The Company operates in North America with revenue from the United States representing approximately 93.0% and 92.7% of total revenue for the three and nine months ended September 30, 2024, respectively, compared to 92.2% and 91.9% for the same periods in 2023. The Company’s rental transactions are accounted for under Accounting Standards Codification ("ASC") Topic 842, Leases ("Topic 842"). The Company’s sale of rental and new equipment, parts and supplies along with certain services provided to customers are accounted for under ASC Topic 606, Revenue from Contracts with Customers ("Topic 606"). The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to a customer. The amount of revenue recognized reflects the consideration the Company expects to be entitled to in exchange for such products or services. The following summarizes the applicable accounting guidance for the Company’s revenues for the three and nine months ended September 30, 2024 and 2023 (in millions): Three Months Ended September 30, 2024 2023 Topic 842 Topic 606 Total Topic 842 Topic 606 Total Revenues: Equipment rental $ 777 $ — $ 777 $ 684 $ — $ 684 Other rental revenue: Delivery and pick-up — 58 58 — 52 52 Other 31 — 31 29 — 29 Total other rental revenues 31 58 89 29 52 81 Total equipment rental 808 58 866 713 52 765 Sales of rental equipment — 81 81 — 124 124 Sales of new equipment, parts and supplies — 9 9 — 11 11 Service and other revenues — 9 9 — 8 8 Total revenues $ 808 $ 157 $ 965 $ 713 $ 195 $ 908 Nine Months Ended September 30, 2024 2023 Topic 842 Topic 606 Total Topic 842 Topic 606 Total Revenues: Equipment rental $ 2,110 $ — $ 2,110 $ 1,905 $ — $ 1,905 Other rental revenue: Delivery and pick-up — 156 156 — 139 139 Other 84 — 84 77 — 77 Total other rental revenues 84 156 240 77 139 216 Total equipment rental 2,194 156 2,350 1,982 139 2,121 Sales of rental equipment — 215 215 — 278 278 Sales of new equipment, parts and supplies — 28 28 — 29 29 Service and other revenues — 24 24 — 22 22 Total revenues $ 2,194 $ 423 $ 2,617 $ 1,982 $ 468 $ 2,450 Topic 842 revenues Equipment Rental Revenue The Company offers a broad portfolio of equipment for rent on daily, weekly or monthly basis, with substantially all rental agreements cancellable upon the return of the equipment. Virtually all customer contracts can be canceled by the customer with no penalty by returning the equipment within one day; therefore, the Company does not allocate the transaction price between the different contract elements. Equipment rental revenue includes revenue generated from renting equipment to customers and is recognized on a straight-line basis over the length of the rental contract. As part of this straight-line methodology, when the equipment is returned, the Company recognizes as incremental revenue the excess, if any, between the amount the customer is contractually required to pay, which is based on the rental contract period applicable to the actual number of days the equipment was out on rent, over the cumulative amount of revenue recognized to date. In any given accounting period, the Company will have customers return equipment and be contractually required to pay more than the cumulative amount of revenue recognized to date under the straight-line methodology. Also included in equipment rental revenue is re-rent revenue in which the Company will rent specific pieces of equipment from vendors and then re-rent that equipment to its customers. Provisions for discounts, rebates to customers and other adjustments are provided for in the period the related revenue is recorded. Other Other equipment rental revenue is primarily comprised of fees for the Company’s rental protection program and environmental charges. Fees paid for the rental protection program allow customers to limit the risk of financial loss in the event the Company’s equipment is damaged or lost. Fees for the rental protection program and environmental recovery fees are recognized on a straight-line basis over the length of the rental contract. Topic 606 revenues Delivery and pick-up Delivery and pick-up revenue associated with renting equipment is recognized when the services are performed. Sales of Rental Equipment, New Equipment, Parts and Supplies The Company sells its used rental equipment, new equipment, parts and supplies. Revenues recorded for each category are as follows (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Sales of rental equipment $ 81 $ 124 $ 215 $ 278 Sales of new equipment 2 5 8 10 Sales of parts and supplies 7 6 20 19 Total $ 90 $ 135 $ 243 $ 307 The Company recognizes revenue from the sale of rental equipment, new equipment, parts and supplies when control of the asset transfers to the customer, which is typically when the asset is picked up by or delivered to the customer and when significant risks and rewards of ownership have passed to the customer. Sales and other tax amounts collected from customers and remitted to government authorities are accounted for on a net basis and, therefore, excluded from revenue. The Company routinely sells its used rental equipment in order to manage repair and maintenance costs, as well as the composition, age and size of its fleet. The Company disposes of used equipment through a variety of channels including retail sales to customers and other third parties, sales to wholesalers, brokered sales and auctions. The Company also sells new equipment, parts and supplies. The types of new equipment that the Company sells vary by location and include a variety of ProContractor tools and supplies, small equipment (such as work lighting, generators, pumps, compaction equipment and power trowels), safety supplies and expendables. Under Topic 606, the accounts receivable balance, prior to allowances for credit losses, for the sale of rental equipment, new equipment, parts and supplies, was approximately $16 million and $11 million as of September 30, 2024 and December 31, 2023, respectively. Service and other revenues Service and other revenues primarily include revenue earned from equipment management and similar services for rental customers which includes providing customer support functions such as dedicated in-plant operations, plant management services, equipment and safety training, and repair and maintenance services particularly to industrial customers who request such services. The Company recognizes revenue for service and other revenues as the services are provided. Service and other revenues are typically invoiced together with a customer’s rental amounts and, therefore, it is not practical for the Company to separate the accounts receivable amount related to services and other revenues that are accounted for under Topic 606; however, such amount is not considered material. Receivables and contract assets and liabilities Most of the Company's equipment rental revenue is accounted for under Topic 842. The customers that are responsible for the remaining equipment rental revenue that is accounted for under Topic 606 are generally the same customers that rent the Company's equipment. Concentration of credit risk with respect to the Company's accounts receivable is limited because a large number of geographically diverse customers makes up its customer base. The Company manages credit risk associated with its accounts receivable at the customer level through credit approvals, credit limits and other monitoring procedures. The Company maintains allowances for credit losses that reflect the Company's estimate of the amount of receivables that the Company will be unable to collect based on its historical write-off experience. The Company does not have material contract assets or contract liabilities associated with customer contracts. The Company's contracts with customers do not generally result in material amounts billed to customers in excess of recognizable revenue. The Company did not recognize material revenue during the three and nine months ended September 30, 2024 and 2023 that was included in the contract liability balance as of the beginning of each period. Performance obligations Most of the Company's revenue recognized under Topic 606 is recognized at a point-in-time, rather than over time. Accordingly, in any particular period, the Company does not generally recognize a significant amount of revenue from performance obligations satisfied (or partially satisfied) in previous periods, and the amount of such revenue recognized during the three and nine months ended September 30, 2024 and 2023 was not material. We also do not expect to recognize material revenue in the future related to performance obligations that were unsatisfied (or partially unsatisfied) as of September 30, 2024. Contract estimates and judgments The Company's revenues accounted for under Topic 606 generally do not require significant estimates or judgments, primarily for the following reasons: • The transaction price is generally fixed and stated on the Company's contracts; • As noted above, the Company's contracts generally do not include multiple performance obligations, and accordingly do not generally require estimates of the standalone selling price for each performance obligation; • The Company's revenues do not include material amounts of variable consideration; and • Most of the Company's revenue is recognized as of a point-in-time and the timing of the satisfaction of the applicable performance obligations is readily determinable. As noted above, the revenue recognized under Topic 606 is generally recognized at the time of delivery to, or pick-up by, the customer. The Company monitors and reviews its estimated standalone selling prices on a regular basis.

Rental Equipment

Rental Equipment	9 Months Ended
Rental Equipment	Sep. 30, 2024
Rental Equipment [Abstract]
Rental Equipment	Rental Equipment Rental equipment consists of the following (in millions): September 30, 2024 December 31, 2023 Rental equipment $ 6,453 $ 5,785 Less: Accumulated depreciation (2,170) (1,954) Rental equipment, net $ 4,283 $ 3,831

Business Combinations

Business Combinations	9 Months Ended
Business Combinations	Sep. 30, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]
Business Combinations	Business Combinations On July 16, 2024, the Company completed the acquisition of substantially all of the assets of Otay Mesa Sales ("Otay"). Otay was a full-service general equipment rental company comprised of approximately 135 employees and four locations serving construction and industrial customers throughout the metropolitan areas of San Diego, California and Phoenix and Yuma, Arizona. The aggregate consideration for the acquisition was approximately $273 million. The acquisition and related fees and expenses were funded through available cash and drawings on the senior secured asset-based revolving credit facility. The following table summarizes the purchase price allocation of the assets acquired and liabilities assumed (in millions): Otay Accounts receivable $ 15 Rental equipment 129 Property and equipment 9 Intangibles (a) 65 Total identifiable assets acquired 218 Current liabilities 1 Net identifiable assets acquired 217 Goodwill (b) 56 Net assets acquired $ 273 (a) The following table reflects the fair values and useful lives of the acquired intangible assets identified (in millions): Otay Life (years) Customer relationships $ 61 14 Non-compete agreements 4 5 Total acquired intangible assets $ 65 (b) The level of goodwill that resulted from the acquisition is primarily reflective of operational synergies that the Company expects to achieve that are not associated with identifiable assets, the value of Otay's assembled workforce and new customer relationships expected to arise from the acquisition. All of the goodwill is expected to be deductible for income tax purposes. The assets and liabilities for Otay were recorded as of July 16, 2024 and the results of operations have been included in the Company's consolidated results of operations since that date. Total revenue and income before taxes for Otay included in the consolidated statement of operations since the acquisition date are $17 million and $4 million, respectively. Pro Forma Supplementary Data The unaudited pro forma supplementary data presented in the table below (in millions) gives effect to the acquisition of Otay as if it had been included in the Company's condensed consolidated results for the entire period reflected. The unaudited pro forma supplementary data is provided for informational purposes only and is not indicative of the Company's results of operations had the acquisitions been included for the period presented, nor is it indicative of the Company's future results. Three Months Ended September 30, 2024 Nine Months Ended September 30, 2024 Herc Otay Total Herc Otay Total Historic/pro forma total revenues $ 965 $ 3 $ 968 $ 2,617 $ 41 $ 2,658 Historic/combined pretax income 160 1 161 334 4 338 Pro forma adjustments to consolidated pretax income: Impact of fair value adjustments/useful life changes on depreciation (a) — — 3 3 Intangible asset amortization (b) — — (5) (5) Interest expense (c) (1) (1) (10) (10) Elimination of historic interest (d) — — 3 3 Elimination of merger related costs (e) 1 1 2 2 Pro forma pretax income $ 161 $ 331 Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023 Herc Otay Total Herc Otay Total Historic/pro forma total revenues $ 908 $ 18 $ 926 $ 2,450 $ 55 $ 2,505 Historic/combined pretax income 146 3 149 324 8 332 Pro forma adjustments to consolidated pretax income: Impact of fair value adjustments/useful life changes on depreciation (a) 1 1 2 2 Intangible asset amortization (b) (2) (2) (6) (6) Interest expense (c) (5) (5) (13) (13) Elimination of historic interest (d) 1 1 3 3 Pro forma pretax income $ 144 $ 318 (a) Depreciation of rental equipment was adjusted for the fair value at acquisition and changes in useful lives of equipment acquired. (b) Intangible asset amortization was adjusted to include amortization of the acquired intangible assets. (c) As discussed above, the Company funded the Otay acquisition primarily using drawings on its senior secured asset-based revolving credit facility. Interest expense was adjusted to reflect interest on such borrowings. (d) Historic interest on debt that is not part of the combined entity was eliminated. (e) Merger related direct costs primarily comprised of financial and legal advisory fees associated with the Otay acquisition were eliminated as they were assumed to have been recognized prior to the pro forma acquisition date.

Goodwill and Intangible Assets

Goodwill and Intangible Assets	9 Months Ended
Goodwill and Intangible Assets	Sep. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets	Goodwill and Intangible Assets Goodwill The following summarizes the Company's goodwill (in millions): September 30, 2024 December 31, 2023 Balance at the beginning of the period: Goodwill, gross $ 1,154 $ 1,088 Accumulated impairment losses (671) (669) Goodwill 483 419 Goodwill classified as held for sale — (65) Additions 177 128 Currency translation (1) 1 Balance at the end of the period: Goodwill, gross 1,328 1,154 Accumulated impairment losses (669) (671) Goodwill $ 659 $ 483 Intangible Assets Intangible assets, net, consisted of the following major classes (in millions): September 30, 2024 Gross Carrying Amount Accumulated Amortization Net Carrying Value Finite-lived intangible assets: Customer-related and non-compete agreements $ 373 $ (95) $ 278 Internally developed software (a) 36 (12) 24 Total 409 (107) 302 Indefinite-lived intangible assets: Trade name 270 — 270 Total intangible assets, net $ 679 $ (107) $ 572 (a) Includes capitalized costs of $15 million yet to be placed into service. December 31, 2023 Gross Carrying Accumulated Net Carrying Value Finite-lived intangible assets: Customer-related and non-compete agreements $ 248 $ (69) $ 179 Internally developed software (a) 64 (47) 17 Total 312 (116) 196 Indefinite-lived intangible assets: Trade name 271 — 271 Total intangible assets, net $ 583 $ (116) $ 467 (a) Includes capitalized costs of $3 million yet to be placed into service.

Assets Held for Sale

Assets Held for Sale	9 Months Ended
Assets Held for Sale	Sep. 30, 2024
Discontinued Operations and Disposal Groups [Abstract]
Assets Held for Sale	Assets Held for Sale The Company's assets held for sale consists of the Cinelease studio entertainment and lighting and grip equipment rental business ("Cinelease"). The film and studio entertainment industry has shifted to a studio centric model where owning or managing a large footprint of studios is becoming more important to be a competitive equipment rental provider, requiring significant investment in fully managed studios. This business model is a departure from the Company's stated growth strategy. During the fourth quarter of 2023, it was determined that Cinelease met all criteria to be classified as assets held for sale with the expectation of a transaction to be completed within 12 months. Since the determination was made, market conditions changed due to labor strikes within the industry that had short-term impacts to the business which slowed the process of exploring strategic alternatives. Cinelease continues to be actively marketed for sale and management expects a transaction to be completed within the upcoming year. The Company continues to assess the fair value, less costs to sell, each reporting period it remains classified as held for sale. The following table summarizes the assets and liabilities held for sale (in millions): September 30, 2024 December 31, 2023 Assets held for sale: Cash and cash equivalents $ 1 $ 1 Receivables, net of allowances 8 8 Other current assets 11 12 Total current assets held for sale $ 20 $ 21 Rental equipment, net $ 196 $ 183 Property and equipment, net 35 34 Right-of-use lease assets 77 75 Intangible assets, net 4 4 Goodwill 65 65 Other long-term assets 38 47 Total long-term assets held for sale $ 415 $ 408 Liabilities held for sale: Current maturities of operating lease liabilities $ 8 $ 8 Accounts payable 8 6 Accrued liabilities 5 5 Total current liabilities held for sale $ 21 $ 19 Operating lease liabilities $ 61 $ 68 Total long-term liabilities held for sale $ 61 $ 68

Leases

Leases	9 Months Ended
Leases	Sep. 30, 2024
Leases [Abstract]
Leases	Leases The Company leases real estate, office equipment and service vehicles. The Company's leases have remaining lease terms of up to 23 years, some of which include options to extend the leases for up to 20 years. The Company determines the lease term used to record each lease by including the initial lease term and, in the case where there are options to extend, will include the option to extend if it has determined that it is reasonably certain that the Company would exercise those options. The Company also leases certain equipment that it rents to its customers where the payments vary based upon the amount of time the equipment is on rent. There are no fixed payments on these leases and, therefore, no lease liability or ROU assets have been recorded. Leases with an initial term of 12 months or less are not recorded on the balance sheet. Lease expense for these leases is recognized on a straight-line basis over the lease term. The components of lease expense consist of the following (in millions): Three Months Ended September 30, Nine Months Ended September 30, Classification 2024 2023 2024 2023 Operating lease cost (a) Direct operating $ 40 $ 32 $ 117 $ 99 Finance lease cost: Amortization of ROU assets Depreciation and amortization 4 3 12 10 Interest on lease liabilities Interest expense, net 1 — 2 1 Sublease income Equipment rental revenue (19) (13) (58) (45) Net lease cost $ 26 $ 22 $ 73 $ 65 (a) Includes short-term leases of $15 million and $47 million for the three and nine months ended September 30, 2024, respectively, and $11 million and $39 million for the three and nine months ended September 30, 2023, respectively, and variable lease costs of $2 million and $4 million for the three and nine months ended September 30, 2024, respectively, and $1 million and $3 million for the three and nine months ended September 30, 2023, respectively.
Leases	Leases The Company leases real estate, office equipment and service vehicles. The Company's leases have remaining lease terms of up to 23 years, some of which include options to extend the leases for up to 20 years. The Company determines the lease term used to record each lease by including the initial lease term and, in the case where there are options to extend, will include the option to extend if it has determined that it is reasonably certain that the Company would exercise those options. The Company also leases certain equipment that it rents to its customers where the payments vary based upon the amount of time the equipment is on rent. There are no fixed payments on these leases and, therefore, no lease liability or ROU assets have been recorded. Leases with an initial term of 12 months or less are not recorded on the balance sheet. Lease expense for these leases is recognized on a straight-line basis over the lease term. The components of lease expense consist of the following (in millions): Three Months Ended September 30, Nine Months Ended September 30, Classification 2024 2023 2024 2023 Operating lease cost (a) Direct operating $ 40 $ 32 $ 117 $ 99 Finance lease cost: Amortization of ROU assets Depreciation and amortization 4 3 12 10 Interest on lease liabilities Interest expense, net 1 — 2 1 Sublease income Equipment rental revenue (19) (13) (58) (45) Net lease cost $ 26 $ 22 $ 73 $ 65 (a) Includes short-term leases of $15 million and $47 million for the three and nine months ended September 30, 2024, respectively, and $11 million and $39 million for the three and nine months ended September 30, 2023, respectively, and variable lease costs of $2 million and $4 million for the three and nine months ended September 30, 2024, respectively, and $1 million and $3 million for the three and nine months ended September 30, 2023, respectively.

Debt

Debt	9 Months Ended
Debt	Sep. 30, 2024
Debt Disclosure [Abstract]
Debt	Debt The Company's debt consists of the following (in millions): Weighted Average Effective Interest Rate at September 30, 2024 Weighted Average Stated Interest Rate at September 30, 2024 Fixed or Floating Interest Rate Maturity September 30, December 31, Senior Notes 2027 Notes 5.61% 5.50% Fixed 2027 $ 1,200 $ 1,200 2029 Notes 6.91% 6.63% Fixed 2029 800 — Other Debt ABL Credit Facility N/A 6.43% Floating 2027 1,733 2,072 AR Facility N/A 5.99% Floating 2025 390 345 Finance lease liabilities 4.12% N/A Fixed 2024-2031 68 76 Unamortized debt issuance costs (a) (13) (5) Total debt 4,178 3,688 Less: Current maturities of long-term debt (15) (15) Total long-term debt, net $ 4,163 $ 3,673 (a) Unamortized debt issuance costs totaling $7 million and $8 million related to the ABL Credit Facility and AR Facility (as each is defined below) as of September 30, 2024 and December 31, 2023, are included in "Other long-term assets" in the condensed consolidated balance sheets. The effective interest rates for the fixed rate 2027 Notes and 2029 Notes (as defined below) includes the stated interest on the notes and the amortization of any debt issuance costs. Senior Notes—2027 Notes On July 9, 2019, the Company issued $1.2 billion aggregate principal amount of its 5.50% Senior Notes due 2027 (the "2027 Notes"). Interest on the 2027 Notes accrues at the rate of 5.50% per annum and is payable semi-annually in arrears on January 15 and July 15. The 2027 Notes will mature on July 15, 2027. Additional information about the 2027 Notes is included in Note 11, "Debt" to the Company's financial statements included in its Annual Report on Form 10-K for the year ended December 31, 2023. Senior Notes—2029 Notes On June 7, 2024, the Company issued $800 million aggregate principal amount of its 6.625% Senior Notes due 2029 (the "2029 Notes" and, together with the 2027 Notes, the "Notes"). The net proceeds were used to repay a portion of the indebtedness outstanding under the ABL Credit Facility and to pay related fees and expenses. Interest on the 2029 Notes accrues at the rate of 6.625% per annum and will be payable semi-annually in arrears on June 15 and December 15 of each year, commencing on December 15, 2024. The 2029 Notes will mature on June 15, 2029. Ranking; Guarantees The 2029 Notes are the Company's senior unsecured obligations, ranking equally in right of payment with all of the Company's existing and future senior indebtedness, effectively junior to any of the Company's existing and future indebtedness, including the ABL Credit Facility, to the extent of the value of the assets securing such indebtedness, and senior in right of payment to any of the Company's existing and future subordinated indebtedness. The 2029 Notes are guaranteed on a senior unsecured basis, subject to limited exceptions including special purpose securitization subsidiaries, by the Company's current and future domestic subsidiaries. Redemption The Company may, at its option, redeem the 2029 Notes, in whole or in part, at any time prior to June 15, 2026, at a price equal to 100% of the aggregate principal amount of the 2029 Notes, plus the applicable make-whole premium and accrued and unpaid interest, if any, to, but excluding, the redemption date. The Company may, at its option, redeem the 2029 Notes, in whole or in part, at any time (i) on or after June 15, 2026 and prior to June 15, 2027, at a price equal to 103.313% of the principal amount of the 2029 Notes, (ii) on or after June 15, 2027 and prior to June 15, 2028, at a price equal to 101.656% of the principal amount of the 2029 Notes and (iii) on or after June 15, 2028, at a price equal to 100.000% of the principal amount of the 2029 Notes, in each case, plus accrued and unpaid interest, if any, to, but excluding, the applicable redemption date. In addition, at any time on or prior to June 15, 2026, the Company may, at its option, redeem up to 40% of the aggregate principal amount of the 2029 Notes with the net cash proceeds of one or more equity offerings at a redemption price equal to 106.625% of the principal amount of the 2029 Notes, plus accrued and unpaid interest, if any, to, but excluding, the redemption date. Covenants The indenture governing the 2029 Notes contains certain covenants applicable to the Company and its restricted subsidiaries, including limitations on: indebtedness; restricted payments; liens; dispositions of proceeds from asset sales; transactions with affiliates; dividends and other payment restrictions affecting restricted subsidiaries; designations of unrestricted subsidiaries; and mergers, consolidations and sale of assets. Upon the occurrence of certain events constituting a change of control triggering event, the Company is required to make an offer to repurchase all of the 2029 Notes (unless otherwise redeemed) at a purchase price equal to 101% of their principal amount, plus accrued and unpaid interest, if any, to, but excluding, the repurchase date. If the Company sells assets under certain circumstances, it must use the proceeds to make an offer to purchase the 2029 Notes at a price equal to 100% of their principal amount, plus accrued and unpaid interest, if any, to, but excluding, the repurchase date. Events of Default The indenture also provides for customary events of default, including the following (subject to any applicable cure period): nonpayment, breach of covenants in the indenture, payment defaults under or acceleration of certain other indebtedness, failure to discharge certain judgments and certain events of bankruptcy, insolvency and reorganization. If an event of default occurs or is continuing, the trustee or the holders of at least 30% in aggregate principal amount of the 2029 Notes then outstanding may declare the principal of, premium, if any, and accrued and unpaid interest, if any, to be due and payable immediately. ABL Credit Facility On July 31, 2019, Herc Holdings, Herc and certain other subsidiaries of Herc Holdings entered into a credit agreement with respect to a senior secured asset-based revolving credit facility (the "ABL Credit Facility"), which was amended and extended on July 5, 2022. The ABL Credit Facility provides for aggregate maximum borrowings of up to $3.5 billion (subject to availability under a borrowing base). Up to $250 million of the revolving loan facility is available for the issuance of letters of credit, subject to certain conditions including issuing lender participation. Subject to the satisfaction of certain conditions and limitations, the ABL Credit Facility allows for the addition of incremental revolving commitments and/or incremental term loans. The ABL Credit Facility matures on July 5, 2027. Additional information about the ABL Credit Facility is included in Note 11, "Debt" to the Company's financial statements included in its Annual Report on Form 10-K for the year ended December 31, 2023. Accounts Receivable Securitization Facility The accounts receivable securitization facility (the "AR Facility") was amended in August 2024 to extend the maturity date to August 31, 2025 and increase the aggregate commitments from $370 million to $400 million. In connection with the AR Facility, Herc sells its accounts receivables on an ongoing basis to Herc Receivables U.S. LLC, a wholly-owned special-purpose entity (the "SPE"). The SPE's sole business consists of the purchase by the SPE of accounts receivable from Herc and borrowing by the SPE against the eligible accounts receivable from the lenders under the facility. The borrowings are secured by liens on the accounts receivable and other assets of the SPE. Collections on the accounts receivable are used to service the borrowings. The SPE is a separate legal entity that is consolidated in the Company's financial statements. The SPE assets are owned by the SPE and are not available to settle the obligations of the Company or any of its other subsidiaries. Herc is the servicer of the accounts receivable under the AR Facility. All of the obligations of the servicer and certain indemnification obligations of the SPE under the agreements governing the AR Facility are guaranteed by Herc pursuant to a performance guarantee. The AR Facility is excluded from current maturities of long-term debt as the Company has the intent and ability to fund the AR Facility's borrowings on a long-term basis either by further extending the maturity date of the AR Facility or by utilizing the capacity available at the balance sheet date under the ABL Credit Facility. Borrowing Capacity and Availability After outstanding borrowings, the following was available to the Company under the ABL Credit Facility and AR Facility as of September 30, 2024 (in millions): Remaining Availability Under ABL Credit Facility $ 1,733 $ 1,733 AR Facility 10 10 Total $ 1,743 $ 1,743 Letters of Credit As of September 30, 2024, $34 million of standby letters of credit were issued and outstanding, none of which have been drawn upon. The ABL Credit Facility had $216 million available under the letter of credit facility sublimit, subject to borrowing base restrictions.

Financing Obligations

Financing Obligations	9 Months Ended
Financing Obligations	Sep. 30, 2024
Leases [Abstract]
Financing Obligations	Financing Obligations In prior years, Herc entered into sale-leaseback transactions pursuant to which it sold 44 properties located in the U.S. and certain service vehicles. The sale of the properties and service vehicles did not qualify for sale-leaseback accounting; therefore, the book value of the assets remain on the Company's consolidated balance sheet. The Company's financing obligations consist of the following (in millions): Weighted Average Effective Interest Rate at September 30, 2024 Maturities September 30, 2024 December 31, 2023 Financing obligations 5.38% 2026-2038 $ 107 $ 110 Unamortized financing issuance costs (1) (2) Total financing obligations 106 108 Less: Current maturities of financing obligations (5) (4) Financing obligations, net $ 101 $ 104

Income Taxes

Income Taxes	9 Months Ended
Income Taxes	Sep. 30, 2024
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Income tax provision was $38 million, with an effective tax rate of 24%, for the three months ended September 30, 2024 compared to $33 million and 23% in the same period of 2023. The rate increase was primarily driven by certain non-deductible expenses and return to provision adjustments.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss)	9 Months Ended
Accumulated Other Comprehensive Income (Loss)	Sep. 30, 2024
Equity [Abstract]
Accumulated Other Comprehensive Income (Loss)	Accumulated Other Comprehensive Income (Loss) The changes in the accumulated other comprehensive income (loss) balance by component (net of tax) for the nine months ended September 30, 2024 are presented in the table below (in millions). Pension and Other Post-Employment Benefits Foreign Currency Items Accumulated Other Comprehensive Income (Loss) Balance at December 31, 2023 $ (20) $ (98) $ (118) Other comprehensive loss before reclassification — (6) (6) Amounts reclassified from accumulated other comprehensive loss 1 — 1 Net current period other comprehensive loss 1 (6) (5) Balance at September 30, 2024 $ (19) $ (104) $ (123)

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
Commitments and Contingencies	Sep. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Legal Proceedings The Company is subject to a number of claims and proceedings that generally arise in the ordinary conduct of its business. These matters include, but are not limited to, claims arising from the operation of rented equipment and workers' compensation claims. The Company does not believe that the liabilities arising from such ordinary course claims and proceedings will have a material adverse effect on the Company's consolidated financial position, results of operations or cash flows. The Company has established reserves for matters where the Company believes the losses are probable and can be reasonably estimated. For matters where a reserve has not been established, the ultimate outcome or resolution cannot be predicted at this time, or the amount of ultimate loss, if any, cannot be reasonably estimated. Litigation is subject to many uncertainties and there can be no assurance as to the outcome of the individual litigated matters. It is possible that certain of the actions, claims, inquiries or proceedings could be decided unfavorably to the Company or any of its subsidiaries involved. Accordingly, it is possible that an adverse outcome from such a proceeding could exceed the amount accrued in an amount that could be material to the Company's consolidated financial condition, results of operations or cash flows in any particular reporting period. Off-Balance Sheet Commitments Indemnification Obligations In the ordinary course of business, the Company executes contracts involving indemnification obligations customary in the relevant industry and indemnifications specific to a transaction such as the sale of a business or assets or a financial transaction. These indemnification obligations might include claims relating to the following: accuracy of representations; compliance with covenants and agreements by the Company or third parties; environmental matters; intellectual property rights; governmental regulations; employment-related matters; customer, supplier and other commercial contractual relationships; condition of assets; and financial or other matters. Performance under these indemnification obligations would generally be triggered by a breach of terms of the contract or by a third-party claim. The Company regularly evaluates the probability of having to incur costs associated with these indemnification obligations and has accrued for expected losses that are probable and estimable. The types of indemnification obligations for which payments are possible include the following: The Spin-Off

Fair Value Measurements

Fair Value Measurements	9 Months Ended
Fair Value Measurements	Sep. 30, 2024
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements Assets and Liabilities Measured at Fair Value on a Recurring Basis The fair value of cash, accounts receivable, accounts payable and accrued liabilities, to the extent the underlying liability will be settled in cash, approximates the carrying values because of the short-term nature of these instruments. Cash Equivalents Cash equivalents primarily consist of money market accounts which are classified as Level 1 assets which the Company measures at fair value on a recurring basis. The Company measures the fair value of cash equivalents using a market approach based on quoted prices in active markets. The Company had $63 million in cash equivalents at September 30, 2024 and $31 million at December 31, 2023. Debt Obligations The fair values of the Company's ABL Credit Facility, AR Facility and finance lease liabilities approximated their book values as of September 30, 2024 and December 31, 2023. The fair value of the Company's Notes are estimated based on quoted market rates as well as borrowing rates currently available to the Company for loans with similar terms and average maturities (Level 2 inputs) (in millions). September 30, 2024 December 31, 2023 Nominal Unpaid Principal Balance Aggregate Fair Value Nominal Unpaid Principal Balance Aggregate Fair Value 2027 Notes $ 1,200 $ 1,197 $ 1,200 $ 1,180 2029 Notes 800 825 — — Notes $ 2,000 $ 2,022 $ 1,200 $ 1,180

Earnings Per Share

Earnings Per Share	9 Months Ended
Earnings Per Share	Sep. 30, 2024
Earnings Per Share [Abstract]
Earnings Per Share	Earnings Per Share Basic earnings per share has been computed based upon the weighted average number of common shares outstanding. Diluted earnings per share has been computed based upon the weighted average number of common shares outstanding plus the effect of all potentially dilutive common stock equivalents, except when the effect would be anti-dilutive. The following table sets forth the computation of basic and diluted earnings per share (in millions, except per share data). Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Basic and diluted earnings per share: Numerator: Net income, basic and diluted $ 122 $ 113 $ 257 $ 256 Denominator: Basic weighted average common shares 28.4 28.3 28.4 28.5 Stock options, RSUs and PSUs 0.1 0.2 0.1 0.3 Weighted average shares used to calculate diluted earnings per share 28.5 28.5 28.5 28.8 Earnings per share: Basic $ 4.30 $ 3.99 $ 9.05 $ 8.98 Diluted $ 4.28 $ 3.96 $ 9.02 $ 8.89 Antidilutive stock options, RSUs and PSUs — — — 0.1

Arrangements with New Hertz

Arrangements with New Hertz	9 Months Ended
Arrangements with New Hertz	Sep. 30, 2024
Related Party Transactions [Abstract]
Arrangements with New Hertz	Arrangements with New Hertz On June 30, 2016, the Company, in its previous form as the holding company of both the existing equipment rental operations as well as the former vehicle rental operations (in its form prior to the Spin-Off, "Hertz Holdings"), completed a spin-off (the "Spin-Off") of its global vehicle rental business through a dividend to stockholders of all of the issued and outstanding common stock of Hertz Rental Car Holding Company, Inc., which was re-named Hertz Global Holdings, Inc. ("New Hertz") in connection with the Spin-Off. New Hertz is an independent public company and continues to operate its global vehicle rental business through its operating subsidiaries including The Hertz Corporation ("THC"). In connection with the Spin-Off, the Company entered into a separation and distribution agreement (the "Separation Agreement") with New Hertz. In connection therewith, the Company also entered into various other ancillary agreements with New Hertz to effect the Spin-Off and provide a framework for its relationship with New Hertz. The following summarizes some of the most significant agreements and relationships that Herc Holdings continues to have with New Hertz. Separation and Distribution Agreement The Separation Agreement sets forth the Company's agreements with New Hertz regarding the principal actions taken in connection with the Spin-Off. It also sets forth other agreements that govern aspects of the Company's relationship with New Hertz following the Spin-Off including (i) the manner in which legal matters and claims are allocated and certain liabilities are shared between the Company and New Hertz; (ii) other matters including transfers of assets and liabilities, treatment or termination of intercompany arrangements and releases of certain claims between the parties and their affiliates; (iii) mutual indemnification clauses; and (iv) allocation of Spin-Off expenses between the parties. Tax Matters Agreement The Company entered into a tax matters agreement with New Hertz that governs the parties' rights, responsibilities and obligations after the Spin-Off with respect to tax liabilities and benefits, tax attributes, tax contests and other tax matters regarding income taxes, other taxes and related tax returns.

Basis of Presentation and Sig_2

Basis of Presentation and Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The Company prepares its condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP"). In the opinion of management, the condensed consolidated financial statements reflect all adjustments of a normal recurring nature that are necessary for a fair statement of the results for the interim periods presented. Interim results are not necessarily indicative of results for a full year. The year-end condensed consolidated balance sheet data was derived from audited financial statements, however, these condensed consolidated financial statements do not include all of the disclosures required for complete annual financial statements and, accordingly, certain information, footnotes and disclosures normally included in annual financial statements, prepared in accordance with U.S. GAAP, have been condensed or omitted in accordance with Securities and Exchange Commission ("SEC") rules and regulations. The Company believes that the disclosures made are adequate to make the information not misleading. Accordingly, the condensed consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on February 13, 2024. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and footnotes. Actual results could differ materially from those estimates.
Principles of Consolidation	Principles of Consolidation
Recently Issued Accounting Pronouncements and Disclosure Rules	Recently Issued Accounting Pronouncements and Disclosure Rules Not Yet Adopted Improvements to Reportable Segment Disclosures In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures” (“ASU 2023-07”), which is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The guidance is to be applied retrospectively to all prior periods presented in the financial statements. Upon transition, the segment expense categories and amounts disclosed in the prior periods should be based on the significant segment expense categories identified and disclosed in the period of adoption. The Company is currently evaluating the potential impact of adopting this new guidance on its consolidated financial statements and related disclosures. Improvements to Income Tax Disclosures In December 2023, the FASB issued Accounting Standards Update No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (“ASU 2023-09”), which modifies the rules on income tax disclosures to require entities to disclose (1) specific categories in the rate reconciliation, (2) the income or loss from continuing operations before income tax expense or benefit (separated between domestic and foreign) and (3) income tax expense or benefit from continuing operations (separated by federal, state and foreign). ASU 2023-09 also requires entities to disclose their income tax payments to international, federal, state and local jurisdictions, among other changes. The guidance is effective for annual periods beginning after December 15, 2024. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. ASU 2023-09 should be applied on a prospective basis, but retrospective application is permitted. The Company is currently evaluating the potential impact of adopting this new guidance on its consolidated financial statements and related disclosures. Climate-Related Disclosure Rules In March 2024, the SEC issued final climate-related disclosure rules that will require disclosure of material climate-related risks and material direct greenhouse gas emissions from operations owned or controlled (Scope 1) and material indirect greenhouse gas emissions from purchased energy consumed in owned or controlled operations (Scope 2). Additionally, the rules require disclosure in the notes to the financial statements of the effects of severe weather events and other natural conditions, subject to certain materiality thresholds. The disclosure requirements will begin phasing in for annual periods beginning in calendar year 2025. Currently, it is uncertain whether the SEC's new climate-related disclosure rules will withstand pending and future legal challenges. In April 2024, the SEC issued an order staying implementation of the new disclosure regulations pending the resolution of certain challenges. The Company is currently in the process of analyzing the impact of the rules on its related disclosures.

Revenue Recognition (Tables)

Revenue Recognition (Tables)	9 Months Ended
Revenue Recognition (Tables)	Sep. 30, 2024
Revenue from Contract with Customer [Abstract]
Schedule of New Accounting Pronouncements and Changes in Accounting Principles	The following summarizes the applicable accounting guidance for the Company’s revenues for the three and nine months ended September 30, 2024 and 2023 (in millions): Three Months Ended September 30, 2024 2023 Topic 842 Topic 606 Total Topic 842 Topic 606 Total Revenues: Equipment rental $ 777 $ — $ 777 $ 684 $ — $ 684 Other rental revenue: Delivery and pick-up — 58 58 — 52 52 Other 31 — 31 29 — 29 Total other rental revenues 31 58 89 29 52 81 Total equipment rental 808 58 866 713 52 765 Sales of rental equipment — 81 81 — 124 124 Sales of new equipment, parts and supplies — 9 9 — 11 11 Service and other revenues — 9 9 — 8 8 Total revenues $ 808 $ 157 $ 965 $ 713 $ 195 $ 908 Nine Months Ended September 30, 2024 2023 Topic 842 Topic 606 Total Topic 842 Topic 606 Total Revenues: Equipment rental $ 2,110 $ — $ 2,110 $ 1,905 $ — $ 1,905 Other rental revenue: Delivery and pick-up — 156 156 — 139 139 Other 84 — 84 77 — 77 Total other rental revenues 84 156 240 77 139 216 Total equipment rental 2,194 156 2,350 1,982 139 2,121 Sales of rental equipment — 215 215 — 278 278 Sales of new equipment, parts and supplies — 28 28 — 29 29 Service and other revenues — 24 24 — 22 22 Total revenues $ 2,194 $ 423 $ 2,617 $ 1,982 $ 468 $ 2,450
Schedule of Disaggregation of Revenue	The Company sells its used rental equipment, new equipment, parts and supplies. Revenues recorded for each category are as follows (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Sales of rental equipment $ 81 $ 124 $ 215 $ 278 Sales of new equipment 2 5 8 10 Sales of parts and supplies 7 6 20 19 Total $ 90 $ 135 $ 243 $ 307

Rental Equipment (Tables)

Rental Equipment (Tables)	9 Months Ended
Rental Equipment (Tables)	Sep. 30, 2024
Rental Equipment [Abstract]
Schedule of Rental Equipment	Rental equipment consists of the following (in millions): September 30, 2024 December 31, 2023 Rental equipment $ 6,453 $ 5,785 Less: Accumulated depreciation (2,170) (1,954) Rental equipment, net $ 4,283 $ 3,831

Business Combinations (Tables)

Business Combinations (Tables)	9 Months Ended
Business Combinations (Tables)	Sep. 30, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]
Schedule of Purchase Price Allocation and Fair value and Useful Lives	The following table summarizes the purchase price allocation of the assets acquired and liabilities assumed (in millions): Otay Accounts receivable $ 15 Rental equipment 129 Property and equipment 9 Intangibles (a) 65 Total identifiable assets acquired 218 Current liabilities 1 Net identifiable assets acquired 217 Goodwill (b) 56 Net assets acquired $ 273 (a) The following table reflects the fair values and useful lives of the acquired intangible assets identified (in millions): Otay Life (years) Customer relationships $ 61 14 Non-compete agreements 4 5 Total acquired intangible assets $ 65 (b) The level of goodwill that resulted from the acquisition is primarily reflective of operational synergies that the Company expects to achieve that are not associated with identifiable assets, the value of Otay's assembled workforce and new customer relationships expected to arise from the acquisition. All of the goodwill is expected to be deductible for income tax purposes.
Schedule of Pro Forma Supplementary Data	The unaudited pro forma supplementary data presented in the table below (in millions) gives effect to the acquisition of Otay as if it had been included in the Company's condensed consolidated results for the entire period reflected. The unaudited pro forma supplementary data is provided for informational purposes only and is not indicative of the Company's results of operations had the acquisitions been included for the period presented, nor is it indicative of the Company's future results. Three Months Ended September 30, 2024 Nine Months Ended September 30, 2024 Herc Otay Total Herc Otay Total Historic/pro forma total revenues $ 965 $ 3 $ 968 $ 2,617 $ 41 $ 2,658 Historic/combined pretax income 160 1 161 334 4 338 Pro forma adjustments to consolidated pretax income: Impact of fair value adjustments/useful life changes on depreciation (a) — — 3 3 Intangible asset amortization (b) — — (5) (5) Interest expense (c) (1) (1) (10) (10) Elimination of historic interest (d) — — 3 3 Elimination of merger related costs (e) 1 1 2 2 Pro forma pretax income $ 161 $ 331 Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023 Herc Otay Total Herc Otay Total Historic/pro forma total revenues $ 908 $ 18 $ 926 $ 2,450 $ 55 $ 2,505 Historic/combined pretax income 146 3 149 324 8 332 Pro forma adjustments to consolidated pretax income: Impact of fair value adjustments/useful life changes on depreciation (a) 1 1 2 2 Intangible asset amortization (b) (2) (2) (6) (6) Interest expense (c) (5) (5) (13) (13) Elimination of historic interest (d) 1 1 3 3 Pro forma pretax income $ 144 $ 318 (a) Depreciation of rental equipment was adjusted for the fair value at acquisition and changes in useful lives of equipment acquired. (b) Intangible asset amortization was adjusted to include amortization of the acquired intangible assets. (c) As discussed above, the Company funded the Otay acquisition primarily using drawings on its senior secured asset-based revolving credit facility. Interest expense was adjusted to reflect interest on such borrowings. (d) Historic interest on debt that is not part of the combined entity was eliminated. (e) Merger related direct costs primarily comprised of financial and legal advisory fees associated with the Otay acquisition were eliminated as they were assumed to have been recognized prior to the pro forma acquisition date.

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	9 Months Ended
Goodwill and Intangible Assets (Tables)	Sep. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Goodwill	The following summarizes the Company's goodwill (in millions): September 30, 2024 December 31, 2023 Balance at the beginning of the period: Goodwill, gross $ 1,154 $ 1,088 Accumulated impairment losses (671) (669) Goodwill 483 419 Goodwill classified as held for sale — (65) Additions 177 128 Currency translation (1) 1 Balance at the end of the period: Goodwill, gross 1,328 1,154 Accumulated impairment losses (669) (671) Goodwill $ 659 $ 483
Schedule of Finite Lived Intangible Assets, Net	Intangible assets, net, consisted of the following major classes (in millions): September 30, 2024 Gross Carrying Amount Accumulated Amortization Net Carrying Value Finite-lived intangible assets: Customer-related and non-compete agreements $ 373 $ (95) $ 278 Internally developed software (a) 36 (12) 24 Total 409 (107) 302 Indefinite-lived intangible assets: Trade name 270 — 270 Total intangible assets, net $ 679 $ (107) $ 572 (a) Includes capitalized costs of $15 million yet to be placed into service. December 31, 2023 Gross Carrying Accumulated Net Carrying Value Finite-lived intangible assets: Customer-related and non-compete agreements $ 248 $ (69) $ 179 Internally developed software (a) 64 (47) 17 Total 312 (116) 196 Indefinite-lived intangible assets: Trade name 271 — 271 Total intangible assets, net $ 583 $ (116) $ 467
Schedule of Indefinite Lived Intangible Assets, Net	Intangible assets, net, consisted of the following major classes (in millions): September 30, 2024 Gross Carrying Amount Accumulated Amortization Net Carrying Value Finite-lived intangible assets: Customer-related and non-compete agreements $ 373 $ (95) $ 278 Internally developed software (a) 36 (12) 24 Total 409 (107) 302 Indefinite-lived intangible assets: Trade name 270 — 270 Total intangible assets, net $ 679 $ (107) $ 572 (a) Includes capitalized costs of $15 million yet to be placed into service. December 31, 2023 Gross Carrying Accumulated Net Carrying Value Finite-lived intangible assets: Customer-related and non-compete agreements $ 248 $ (69) $ 179 Internally developed software (a) 64 (47) 17 Total 312 (116) 196 Indefinite-lived intangible assets: Trade name 271 — 271 Total intangible assets, net $ 583 $ (116) $ 467

Assets Held for Sale (Tables)

Assets Held for Sale (Tables)	9 Months Ended
Assets Held for Sale (Tables)	Sep. 30, 2024
Discontinued Operations and Disposal Groups [Abstract]
Schedule of Assets and Liabilities Held for Sale	The following table summarizes the assets and liabilities held for sale (in millions): September 30, 2024 December 31, 2023 Assets held for sale: Cash and cash equivalents $ 1 $ 1 Receivables, net of allowances 8 8 Other current assets 11 12 Total current assets held for sale $ 20 $ 21 Rental equipment, net $ 196 $ 183 Property and equipment, net 35 34 Right-of-use lease assets 77 75 Intangible assets, net 4 4 Goodwill 65 65 Other long-term assets 38 47 Total long-term assets held for sale $ 415 $ 408 Liabilities held for sale: Current maturities of operating lease liabilities $ 8 $ 8 Accounts payable 8 6 Accrued liabilities 5 5 Total current liabilities held for sale $ 21 $ 19 Operating lease liabilities $ 61 $ 68 Total long-term liabilities held for sale $ 61 $ 68

Leases (Tables)

Leases (Tables)	9 Months Ended
Leases (Tables)	Sep. 30, 2024
Leases [Abstract]
Schedule of Lease Expense	The components of lease expense consist of the following (in millions): Three Months Ended September 30, Nine Months Ended September 30, Classification 2024 2023 2024 2023 Operating lease cost (a) Direct operating $ 40 $ 32 $ 117 $ 99 Finance lease cost: Amortization of ROU assets Depreciation and amortization 4 3 12 10 Interest on lease liabilities Interest expense, net 1 — 2 1 Sublease income Equipment rental revenue (19) (13) (58) (45) Net lease cost $ 26 $ 22 $ 73 $ 65 (a) Includes short-term leases of $15 million and $47 million for the three and nine months ended September 30, 2024, respectively, and $11 million and $39 million for the three and nine months ended September 30, 2023, respectively, and variable lease costs of $2 million and $4 million for the three and nine months ended September 30, 2024, respectively, and $1 million and $3 million for the three and nine months ended September 30, 2023, respectively.

Debt (Tables)

Debt (Tables)	9 Months Ended
Debt (Tables)	Sep. 30, 2024
Debt Disclosure [Abstract]
Schedule of Debt	The Company's debt consists of the following (in millions): Weighted Average Effective Interest Rate at September 30, 2024 Weighted Average Stated Interest Rate at September 30, 2024 Fixed or Floating Interest Rate Maturity September 30, December 31, Senior Notes 2027 Notes 5.61% 5.50% Fixed 2027 $ 1,200 $ 1,200 2029 Notes 6.91% 6.63% Fixed 2029 800 — Other Debt ABL Credit Facility N/A 6.43% Floating 2027 1,733 2,072 AR Facility N/A 5.99% Floating 2025 390 345 Finance lease liabilities 4.12% N/A Fixed 2024-2031 68 76 Unamortized debt issuance costs (a) (13) (5) Total debt 4,178 3,688 Less: Current maturities of long-term debt (15) (15) Total long-term debt, net $ 4,163 $ 3,673 (a) Unamortized debt issuance costs totaling $7 million and $8 million related to the ABL Credit Facility and AR Facility (as each is defined below) as of September 30, 2024 and December 31, 2023, are included in "Other long-term assets" in the condensed consolidated balance sheets.
Schedule of Borrowing Capacity and Availability on Line of Credit	After outstanding borrowings, the following was available to the Company under the ABL Credit Facility and AR Facility as of September 30, 2024 (in millions): Remaining Availability Under ABL Credit Facility $ 1,733 $ 1,733 AR Facility 10 10 Total $ 1,743 $ 1,743

Financing Obligations (Tables)

Financing Obligations (Tables)	9 Months Ended
Financing Obligations (Tables)	Sep. 30, 2024
Leases [Abstract]
Schedule of Financing Obligations, Net	The Company's financing obligations consist of the following (in millions): Weighted Average Effective Interest Rate at September 30, 2024 Maturities September 30, 2024 December 31, 2023 Financing obligations 5.38% 2026-2038 $ 107 $ 110 Unamortized financing issuance costs (1) (2) Total financing obligations 106 108 Less: Current maturities of financing obligations (5) (4) Financing obligations, net $ 101 $ 104

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Income (Loss) (Tables)	9 Months Ended
Accumulated Other Comprehensive Income (Loss) (Tables)	Sep. 30, 2024
Equity [Abstract]
Schedule of Accumulated Other Comprehensive Income (Loss)	The changes in the accumulated other comprehensive income (loss) balance by component (net of tax) for the nine months ended September 30, 2024 are presented in the table below (in millions). Pension and Other Post-Employment Benefits Foreign Currency Items Accumulated Other Comprehensive Income (Loss) Balance at December 31, 2023 $ (20) $ (98) $ (118) Other comprehensive loss before reclassification — (6) (6) Amounts reclassified from accumulated other comprehensive loss 1 — 1 Net current period other comprehensive loss 1 (6) (5) Balance at September 30, 2024 $ (19) $ (104) $ (123)

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
Fair Value Measurements (Tables)	Sep. 30, 2024
Fair Value Disclosures [Abstract]
Schedule of Fair Value of Debt	The fair value of the Company's Notes are estimated based on quoted market rates as well as borrowing rates currently available to the Company for loans with similar terms and average maturities (Level 2 inputs) (in millions). September 30, 2024 December 31, 2023 Nominal Unpaid Principal Balance Aggregate Fair Value Nominal Unpaid Principal Balance Aggregate Fair Value 2027 Notes $ 1,200 $ 1,197 $ 1,200 $ 1,180 2029 Notes 800 825 — — Notes $ 2,000 $ 2,022 $ 1,200 $ 1,180

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
Earnings Per Share (Tables)	Sep. 30, 2024
Earnings Per Share [Abstract]
Schedule of Computation of Basic and Diluted Earnings Per Share	The following table sets forth the computation of basic and diluted earnings per share (in millions, except per share data). Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Basic and diluted earnings per share: Numerator: Net income, basic and diluted $ 122 $ 113 $ 257 $ 256 Denominator: Basic weighted average common shares 28.4 28.3 28.4 28.5 Stock options, RSUs and PSUs 0.1 0.2 0.1 0.3 Weighted average shares used to calculate diluted earnings per share 28.5 28.5 28.5 28.8 Earnings per share: Basic $ 4.30 $ 3.99 $ 9.05 $ 8.98 Diluted $ 4.28 $ 3.96 $ 9.02 $ 8.89 Antidilutive stock options, RSUs and PSUs — — — 0.1

Organization and Description _2

Organization and Description of Business (Details)	9 Months Ended
Organization and Description of Business (Details)	Sep. 30, 2024 location
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of locations	439
Number of years of experience	59 years

Revenue Recognition - Narrative

Revenue Recognition - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Disaggregation of Revenue [Line Items]
Period of time customer has to return equipment with no cancelation penalty			1 day
Prior to allowances for credit losses	$ 16		$ 16		$ 11
United States \| Revenue Benchmark \| Geographic Concentration Risk
Disaggregation of Revenue [Line Items]
Concentration risk, percentage	93%	92.20%	92.70%	91.90%

Revenue Recognition - Schedule

Revenue Recognition - Schedule of Accounting Guidance for the Company’s Revenues (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Disaggregation of Revenue [Line Items]
Topic 842	$ 808	$ 713	$ 2,194	$ 1,982
Topic 606	157	195	423	468
Total	$ 965	$ 908	$ 2,617	$ 2,450
Operating Lease, Lease Income, Statement of Income or Comprehensive Income [Extensible Enumeration]	Total	Total	Total	Total
Equipment rental
Disaggregation of Revenue [Line Items]
Topic 842	$ 777	$ 684	$ 2,110	$ 1,905
Total	777	684	2,110	1,905
Delivery and pick-up
Disaggregation of Revenue [Line Items]
Topic 606	58	52	156	139
Total	58	52	156	139
Other
Disaggregation of Revenue [Line Items]
Topic 842	31	29	84	77
Total	31	29	84	77
Other rental
Disaggregation of Revenue [Line Items]
Topic 842	31	29	84	77
Topic 606	58	52	156	139
Total	89	81	240	216
Equipment rental
Disaggregation of Revenue [Line Items]
Topic 842	808	713	2,194	1,982
Topic 606	58	52	156	139
Total	866	765	2,350	2,121
Sales of rental equipment
Disaggregation of Revenue [Line Items]
Topic 606	81	124	215	278
Total	81	124	215	278
Sales of new equipment, parts and supplies
Disaggregation of Revenue [Line Items]
Topic 606	9	11	28	29
Total	9	11	28	29
Service and other revenue
Disaggregation of Revenue [Line Items]
Topic 606	9	8	24	22
Total	$ 9	$ 8	$ 24	$ 22

Revenue Recognition - Schedul_2

Revenue Recognition - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Disaggregation of Revenue [Line Items]
Revenue	$ 157	$ 195	$ 423	$ 468
Sales of rental equipment
Disaggregation of Revenue [Line Items]
Revenue	81	124	215	278
Sales of new equipment
Disaggregation of Revenue [Line Items]
Revenue	2	5	8	10
Sales of parts and supplies
Disaggregation of Revenue [Line Items]
Revenue	7	6	20	19
Sales of rental equipment, new equipment, parts and supplies
Disaggregation of Revenue [Line Items]
Revenue	$ 90	$ 135	$ 243	$ 307

Rental Equipment (Details)

Rental Equipment (Details) - USD ($) $ in Millions	Sep. 30, 2024	Dec. 31, 2023
Rental Equipment [Abstract]
Rental equipment	$ 6,453	$ 5,785
Less: Accumulated depreciation	(2,170)	(1,954)
Rental equipment, net	$ 4,283	$ 3,831

Business Combinations - Narrati

Business Combinations - Narrative (Details) - Otay $ in Millions	Jul. 16, 2024 USD ($) employee location
Business Acquisition [Line Items]
Number of employees \| employee	135
Number of locations acquired \| location	4
Acquisition price	$ 273
Total revenue since acquisition date	17
Earnings since acquisition date	$ 4

Business Combinations - Schedul

Business Combinations - Schedule of Purchase Price Allocation (Details) - USD ($) $ in Millions	Sep. 30, 2024	Jul. 16, 2024	Dec. 31, 2023	Dec. 31, 2022
Business Acquisition [Line Items]
Goodwill	$ 659		$ 483	$ 419
Otay
Business Acquisition [Line Items]
Accounts receivable		$ 15
Rental equipment		129
Property and equipment		9
Intangibles		65
Total identifiable assets acquired		218
Current liabilities		1
Net identifiable assets acquired		217
Goodwill		56
Net assets acquired		$ 273

Business Combinations - Sched_2

Business Combinations - Schedule of Fair Value and Useful Lives (Details) - Otay $ in Millions	Jul. 16, 2024 USD ($)
Business Acquisition [Line Items]
Finite-lived intangible assets acquired	$ 65
Customer relationships
Business Acquisition [Line Items]
Finite-lived intangible assets acquired	$ 61
Weighted average useful life	14 years
Non-compete agreements
Business Acquisition [Line Items]
Finite-lived intangible assets acquired	$ 4
Weighted average useful life	5 years

Business Combinations - Sched_3

Business Combinations - Schedule of Pro Forma Supplementary Data (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Asset Acquisition [Line Items]
Historic/pro forma total revenues	$ 968	$ 926	$ 2,658	$ 2,505
Historic/combined pretax income	161	149	338	332
Impact of fair value adjustments/useful life changes on depreciation	0	1	3	2
Intangible asset amortization	0	(2)	(5)	(6)
Interest expense	(1)	(5)	(10)	(13)
Elimination of historic interest	0	1	3	3
Elimination of merger related costs	1		2
Pro forma pretax income	161	144	331	318
Herc
Asset Acquisition [Line Items]
Historic/pro forma total revenues	965	908	2,617	2,450
Historic/combined pretax income	160	146	334	324
Otay
Asset Acquisition [Line Items]
Historic/pro forma total revenues	3	18	41	55
Historic/combined pretax income	1	3	4	8
Impact of fair value adjustments/useful life changes on depreciation	0	1	3	2
Intangible asset amortization	0	(2)	(5)	(6)
Interest expense	(1)	(5)	(10)	(13)
Elimination of historic interest	0	$ 1	3	$ 3
Elimination of merger related costs	$ 1		$ 2

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets - Goodwill Rollforward (Details) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2024	Dec. 31, 2023
Goodwill [Roll Forward]
Goodwill, gross beginning of the period	$ 1,154	$ 1,088
Accumulated impairment losses, beginning of the period	(671)	(669)
Goodwill, beginning of the period	483	419
Goodwill classified as held for sale	0	(65)
Additions	177	128
Currency translation	(1)	1
Goodwill, gross end of the period	1,328	1,154
Accumulated impairment losses, end of the period	(669)	(671)
Goodwill, end of the period	$ 659	$ 483

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Millions	Sep. 30, 2024	Dec. 31, 2023
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 409	$ 312
Accumulated Amortization	(107)	(116)
Net Carrying Value	302	196
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Total intangible assets, gross	679	583
Accumulated Amortization	(107)	(116)
Total intangible assets, net	572	467
Trade name
Indefinite-lived Intangible Assets [Line Items]
Indefinite-lived intangible assets:	270	271
Customer-related and non-compete agreements
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	373	248
Accumulated Amortization	(95)	(69)
Net Carrying Value	278	179
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Accumulated Amortization	(95)	(69)
Internally developed software
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	36	64
Accumulated Amortization	(12)	(47)
Net Carrying Value	24	17
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Accumulated Amortization	(12)	(47)
Software development
Finite-Lived Intangible Assets [Line Items]
Net Carrying Value	$ 15	$ 3

Goodwill and Intangible Asset_4

Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization of intangible assets	$ 12	$ 10	$ 32	$ 30

Assets Held for Sale (Details)

Assets Held for Sale (Details) - USD ($) $ in Millions	9 Months Ended
Assets Held for Sale (Details) - USD ($) $ in Millions	Sep. 30, 2024	Dec. 31, 2023
Discontinued Operations and Disposal Groups [Abstract]
Assets held for sale transaction expected to close, period	12 months
Assets held for sale:
Cash and cash equivalents	$ 1	$ 1
Receivables, net of allowances	8	8
Other current assets	11	12
Total current assets held for sale	20	21
Rental equipment, net	196	183
Property and equipment, net	35	34
Right-of-use lease assets	77	75
Intangible assets, net	4	4
Goodwill	65	65
Other long-term assets	38	47
Total long-term assets held for sale	415	408
Liabilities held for sale:
Current maturities of operating lease liabilities	8	8
Accounts payable	8	6
Accrued liabilities	5	5
Total current liabilities held for sale	21	19
Operating lease liabilities	61	68
Total long-term liabilities held for sale	$ 61	$ 68

Leases - Narrative (Details)

Leases - Narrative (Details) - Maximum	9 Months Ended
Leases - Narrative (Details) - Maximum	Sep. 30, 2024
Lessee, Lease, Description [Line Items]
Remaining lease term	23 years
Lessee, renewal term	20 years

Leases - Lease Cost (Details)

Leases - Lease Cost (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
Leases - Lease Cost (Details) - USD ($) $ in Millions	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Leases [Abstract]
Operating lease cost	$ 40	$ 32	$ 117	$ 99
Amortization of ROU assets	4	3	12	10
Interest on lease liabilities	1	0	2	1
Sublease income	(19)	(13)	(58)	(45)
Net lease cost	26	22	73	65
Short-term lease, cost	15	11	47	39
Variable lease, cost	$ 2	$ 1	$ 4	$ 3

Debt - Schedule of Debt (Detail

Debt - Schedule of Debt (Details) - USD ($) $ in Millions	Sep. 30, 2024	Jun. 07, 2024	Dec. 31, 2023	Jul. 09, 2019
Debt Instrument [Line Items]
Weighted Average Effective Interest Rate, Finance lease liabilities	4.12%
Finance lease liabilities	$ 68		$ 76
Unamortized debt issuance costs	(13)		(5)
Total debt	4,178		3,688
Less: Current maturities of long-term debt	(15)		(15)
Total long-term debt, net	4,163		3,673
Senior Notes
Debt Instrument [Line Items]
Long-term debt, gross	$ 2,000		1,200
Senior Notes \| 2027 Notes
Debt Instrument [Line Items]
Weighted Average Effective Interest Rate	5.61%
Weighted Average Stated Interest Rate	5.50%			5.50%
Long-term debt, gross	$ 1,200		1,200
Senior Notes \| 2029 Notes
Debt Instrument [Line Items]
Weighted Average Effective Interest Rate	6.91%
Weighted Average Stated Interest Rate	6.63%	6.625%
Long-term debt, gross	$ 800		0
Line of Credit \| ABL Credit Facility \| Senior Secured Revolving Credit Facility
Debt Instrument [Line Items]
Weighted Average Stated Interest Rate	6.43%
Long-term debt, gross	$ 1,733		2,072
Line of Credit \| ABL Credit Facility \| Senior Secured Revolving Credit Facility \| Other Long-term Assets
Debt Instrument [Line Items]
Unamortized debt issuance costs related to credit facility	$ 7		8
Line of Credit \| AR Facility
Debt Instrument [Line Items]
Weighted Average Stated Interest Rate	5.99%
Long-term debt, gross	$ 390		$ 345

Debt - Narrative (Details)

Debt - Narrative (Details) - USD ($)	9 Months Ended
Debt - Narrative (Details) - USD ($)	Sep. 30, 2024	Aug. 31, 2024	Jul. 31, 2024	Jun. 07, 2024	Jul. 05, 2022	Jul. 09, 2019
Debt Instrument [Line Items]
Remaining borrowing capacity	$ 1,743,000,000
Debt Instrument, Redemption, Period Seven
Debt Instrument [Line Items]
Ownership percentage threshold to call debt in the event of default	30%
Line of Credit \| Letter of Credit
Debt Instrument [Line Items]
Letter of credit outstanding	$ 34,000,000
Line of credit	$ 0
AR Facility
Debt Instrument [Line Items]
Maximum borrowing capacity		$ 400,000,000	$ 370,000,000
2027 Notes \| Senior Notes
Debt Instrument [Line Items]
Face amount						$ 1,200,000,000
Stated interest rate	5.50%					5.50%
2029 Notes \| Debt Instrument, Redemption, Period One
Debt Instrument [Line Items]
Redemption price percentage	103.313%
2029 Notes \| Debt Instrument, Redemption, Period Two
Debt Instrument [Line Items]
Redemption price percentage	101.656%
2029 Notes \| Debt Instrument, Redemption, Period Three
Debt Instrument [Line Items]
Redemption price percentage	100%
2029 Notes \| Debt Instrument, Redemption, Period Four
Debt Instrument [Line Items]
Redemption price percentage	106.625%
Redemption price, percentage of principal amount redeemed	40%
2029 Notes \| Debt Instrument, Redemption, Period Five
Debt Instrument [Line Items]
Redemption price percentage	101%
2029 Notes \| Debt Instrument, Redemption, Period Six
Debt Instrument [Line Items]
Redemption price percentage	100%
2029 Notes \| Senior Notes
Debt Instrument [Line Items]
Face amount				$ 800,000,000
Stated interest rate	6.63%			6.625%
Redemption price percentage	100%
ABL Credit Facility \| Line of Credit \| ABL Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity					$ 3,500,000,000
ABL Credit Facility \| Line of Credit \| Letter of Credit
Debt Instrument [Line Items]
Maximum borrowing capacity					$ 250,000,000
Remaining borrowing capacity	$ 216,000,000

Debt - Schedule of Outstanding

Debt - Schedule of Outstanding Borrowings (Details) $ in Millions	Sep. 30, 2024 USD ($)
Line of Credit Facility [Line Items]
Remaining Capacity	$ 1,743
Availability Under Borrowing Base Limitation	1,743
Line of Credit \| ABL Credit Facility \| Senior Secured Revolving Credit Facility
Line of Credit Facility [Line Items]
Remaining Capacity	1,733
Availability Under Borrowing Base Limitation	1,733
Line of Credit \| AR Facility
Line of Credit Facility [Line Items]
Remaining Capacity	10
Availability Under Borrowing Base Limitation	$ 10

Financing Obligations - Narrati

Financing Obligations - Narrative (Details)	Dec. 31, 2023 property
Financing Obligation
Debt Instrument [Line Items]
Sale leaseback transaction, number of properties	44

Financing Obligations - Schedul

Financing Obligations - Schedule of Financing Obligations, Net (Details) - Financing Obligation - USD ($) $ in Millions	Sep. 30, 2024	Dec. 31, 2023
Debt Instrument [Line Items]
Weighted Average Effective Interest Rate	5.38%
Financing obligations	$ 107	$ 110
Unamortized financing issuance costs	(1)	(2)
Total financing obligations	106	108
Less: Current maturities of financing obligations	(5)	(4)
Financing obligations, net	$ 101	$ 104

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
Income Taxes (Details) - USD ($) $ in Millions	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Income Tax Disclosure [Abstract]
Income tax provision	$ 38	$ 33	$ 77	$ 68
Effective tax rate	24%	23%	23%	21%
Benefit related to stock-based compensation			$ 3	$ 12

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	3 Months Ended						9 Months Ended
	Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2024	Sep. 30, 2023
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance, beginning	$ 1,362	$ 1,308	$ 1,273	$ 1,102	$ 1,087	$ 1,108	$ 1,273	$ 1,108
Amounts reclassified from accumulated other comprehensive loss							1
Total other comprehensive income (loss)	4	(3)	(6)	(6)	5	2	(5)	1
Balance, ending	1,477	1,362	1,308	1,199	1,102	1,087	1,477	1,199
Pension and Other Post-Employment Benefits
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance, beginning			(20)				(20)
Other comprehensive loss before reclassification							0
Amounts reclassified from accumulated other comprehensive loss							1
Total other comprehensive income (loss)							1
Balance, ending	(19)						(19)
Foreign Currency Items
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance, beginning			(98)				(98)
Other comprehensive loss before reclassification							(6)
Amounts reclassified from accumulated other comprehensive loss							0
Total other comprehensive income (loss)							(6)
Balance, ending	(104)						(104)
Accumulated Other Comprehensive Income (Loss)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance, beginning	(127)	(124)	(118)	(122)	(127)	(129)	(118)	(129)
Other comprehensive loss before reclassification							(6)
Total other comprehensive income (loss)	4	(3)	(6)	(6)	5	2	(5)
Balance, ending	$ (123)	$ (127)	$ (124)	$ (128)	$ (122)	$ (127)	$ (123)	$ (128)

Commitments and Contingencies (

Commitments and Contingencies (Details)	9 Months Ended
Commitments and Contingencies (Details)	Sep. 30, 2024
New Hertz
Loss Contingencies [Line Items]
Portion of shared liabilities	15%

Fair Value Measurements - Narra

Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions	Sep. 30, 2024	Dec. 31, 2023
Level 1 \| Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents and investments	$ 63	$ 31

Fair Value Measurements - Borro

Fair Value Measurements - Borrowing Rates (Details) - Senior Notes - USD ($) $ in Millions	Sep. 30, 2024	Dec. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Nominal Unpaid Principal Balance	$ 2,000	$ 1,200
Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Aggregate Fair Value	2,022	1,180
2027 Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Nominal Unpaid Principal Balance	1,200	1,200
2027 Notes \| Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Aggregate Fair Value	1,197	1,180
2029 Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Nominal Unpaid Principal Balance	800	0
2029 Notes \| Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Aggregate Fair Value	$ 825	$ 0

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended						9 Months Ended
	Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2024	Sep. 30, 2023
Numerator:
Net income, basic and diluted	$ 122	$ 70	$ 65	$ 113	$ 76	$ 67	$ 257	$ 256
Denominator:
Basic weighted average common shares (in shares)	28.4			28.3			28.4	28.5
Stock options, RSUs and PSUs (in shares)	0.1			0.2			0.1	0.3
Weighted average shares used to calculate diluted earnings per share (in shares)	28.5			28.5			28.5	28.8
Earnings per share:
Basic (in USD per share)	$ 4.30			$ 3.99			$ 9.05	$ 8.98
Diluted (in USD per share)	$ 4.28			$ 3.96			$ 9.02	$ 8.89
Antidilutive stock options, RSUs and PSUs
Earnings per share:
Antidilutive stock options, RSUs and PSUs (in shares)	0			0			0	0.1