Hertz 2015 Annual Report Download - page 131

Table of Contents
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based on achievement of a certain level of Corporate EBITDA or other performance measures over the applicable measurement period.
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The Company previously operated an Employee Stock Purchase Plan ("ESPP") for certain eligible employees. The plan was suspended in 2014.
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During 2015, the Company deemed its former Dollar Thrifty headquarters in Tulsa, Oklahoma, which is part of the U.S. Car Rental segment, as
held for sale. The Company performed an impairment assessment and recorded a charge of $6 million which is included in selling, general and
administrative expense in the Company's statement of operations. The building was sold in December 2015.
Also during 2015, the Company deemed a building in its U.S. Car Rental segment to be held for sale. The Company performed an impairment
assessment and recorded a charge of $5 million. The Company also reassessed the carrying value of a held for sale corporate asset and recorded
a charge of $3 million. The corporate asset was sold in April 2015. These charges are included in other (income) expense, net in the Company's
statement of operations.
Additionally, during 2015, the Company recorded $16 million in charges associated with U.S. Car Rental service equipment and assets deemed to
have no future use, of which $9 million is included in direct operating expense and $7 million is included in other (income) expense, net in the
Company's statement of operations.
During 2014, the Company deemed certain revenue earning equipment in its equipment rental business as held for sale. The Company performed
an impairment assessment and recorded a charge of $10 million. In addition, the Company recorded $10 million in charges to write-off assets
associated with a terminated business relationship. These charges are included in direct operating expense in the Company's statement of
operations.
Also during 2014, the Company deemed its previous corporate headquarters building to be held for sale. The Company performed an impairment
assessment and recorded a charge of $13 million which is included in selling, general and administrative expense in the Company's statement of
operations. The Company also recorded $14 million in charges to write-down service equipment that was deemed to have no future use which is
included in other (income) expense, net in the Company's statement of operations.
During 2013, Franchise Services of North America, Inc., the parent of Simply Wheelz LLC ("Simply Wheelz") the owner and operator of Hertz’s
divested Advantage brand, filed for bankruptcy protection under Chapter 11 of the U.S. Bankruptcy Code. As a result, Hertz performed an
impairment analysis of the vehicles subleased to Simply Wheelz and recorded an impairment charge of $40 million which is included in other
(income) expense, net in the Company's statement of operations.
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The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,
except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.