Hertz 2014 Annual Report Download - page 177

Table of Contents







Balance at the beginning of period

$ 151

$ —
Reclassification of net unrealized gain on securities to prepaid expenses and other
assets

(7)

—
Unrealized gains (losses) related to investments

(14)

21
Purchases

—

130
Settlements

(130)

—
Balance at the end of period

$ —

$ 151
Financial Instruments
The fair value of the Company's financial instruments as of December 31, 2014 and 2013 are shown in Note 16, "Financial Instruments. " The
Company's financial instruments are classified as Level 2 assets and liabilities and are priced using quoted market prices for similar assets or
liabilities in active markets.
Debt Obligations
The fair value of the Company's debt is estimated based on quoted market rates as well as borrowing rates currently available for loans with
similar terms and average maturities (Level 2 inputs).

 











Corporate Debt

$ 6,428

$ 6,468

$ 6,419

$ 6,665
Convertible Debt

—

—

84

293
Total Corporate

6,428

6,468

6,503

6,958
Fleet Debt

9,569

9,595

9,800

9,883
Total

$ 15,997

$ 16,063

$ 16,303

$ 16,841

Assets and liabilities measured at fair value during the year ended December 31, 2014 are as follows:
 








Long-lived assets held for sale $ 67

$ —

$ —

$ 67

$ 24
Market and income approaches were used to value the long-lived assets and inputs included expected cash flows, recent comparable
transactions, discounted cash flows, discount rate and growth rate. See Note 3Summary of Critical and Significant Accounting Policies—Finite
Lived Intangible Assets," for more information on the application of the use of fair value methodology.

The Company provides relocation assistance to its employees in connection with the relocation of its corporate headquarters from Park Ridge,
New Jersey to Estero, Florida. In connection with the relocation program, the Company entered into an agreement with a third-party provider of
relocation services, part of which included purchases of the current residences of eligible employees on its behalf. Consistent with the practices of
other, similarly-situated companies that undergo relocations, the purchase price of each of the residences was determined by obtaining multiple
appraisals, which were averaged for the third party's purchase price. The total amount that the Company spent under the program during the year
ended December 31, 2013 was $3 million for the executive officers. The Compensation Committee approved the program.
165
Source: HERTZ GLOBAL HOLDINGS INC, 10-K, July 16, 2015 Powered by Morningstar® Document Research℠
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