How does Dollar Rent A Car classify cash flows from financial instruments?
Dollar_Rent_A_Car Franchise · 2025 FDDAnswer from 2025 FDD Document
Dividends paid to Hertz Holdings | | | (7) | | | (7) | | December 31, 2024 | 100 | $ | $ 4,598 | $ (3,956) | $ (316) | $ 326 |
(1) See "Share Repurchase Programs for Common Stock" in Note 17, "Equity and Earnings (Loss) Per Common Share – Hertz Global," for additional information.
(2) Represents former CEO awards forfeited in March 2024. See also Note 9, "Stock-Based Compensation."
THE HERTZ CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions)
| Years Ended December 31, | |||||
|---|---|---|---|---|---|
| 2024 | 2023 | 2022 | |||
| Cash flows from operating activities: | |||||
| Net income (loss) | $ (3,137) $ | 452 | $ 1,355 | ||
| Adjustments to reconcile net income (loss) to net cash provided by (used in) | |||||
| operating activities: | |||||
| Depreciation and reserves for revenue earning vehicles, net | 3,983 | 2,422 | 809 | ||
| Depreciation and amortization, non-vehicle | 139 | 149 | 142 | ||
| Amortization of deferred financing costs and debt discoun |
Source: Item 23 — RECEIPTS (FDD pages 102–301)
What This Means (2025 FDD)
According to Dollar Rent A Car's 2025 Franchise Disclosure Document, changes in financial instruments are considered as part of cash flows from operating activities. For the year 2024, the changes in financial instruments resulted in a $7 increase, while in 2023, there was an increase of $117, and in 2022, there was a decrease of $111.
This classification is important for prospective Dollar Rent A Car franchisees because it provides insight into how the company's financial instrument activities impact its overall cash flow. Changes in financial instruments can reflect gains or losses from investments, hedging activities, or changes in the value of financial assets and liabilities. These changes are directly linked to the operational performance of Dollar Rent A Car.
Understanding how Dollar Rent A Car categorizes these cash flows helps franchisees assess the stability and predictability of the company's earnings. By including changes in financial instruments within operating activities, Dollar Rent A Car indicates that these activities are considered a normal part of its business operations. This transparency can assist potential franchisees in making informed decisions about the financial health and operational strategies of the franchise system.