Where can I find more information about Dollar Rent A Car's financial instruments?
Dollar_Rent_A_Car Franchise · 2025 FDDAnswer from 2025 FDD Document
table summarizes the activity related to the Exchange Feature measured at fair value utilizing significant unobservable inputs (Level 3 input) as of December 31, 2024:
(In millions)
| Balance as of December 31, 2023 | $ — |
|---|---|
| Initial recognition of derivative liability | 68 |
| (Gain) loss in fair value recognized in earnings(1) | (7) |
| Balance as of December 31, 2024 | $ 61 |
(1) Included in non-vehicle interest expense, net in the accompanying audited consolidated statement of operations for the year ended December 31, 2024.
Financial Instruments
The fair value of the Company's financial instruments as of December 31, 2024 and 2023 are disclosed in Note 12, "Financial Instruments." The Company's financial instruments, excluding the Exchange Feature as disclosed above, are priced using quoted market prices for similar assets or liabilities in active markets (i.e., Level 2 inputs).
Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis
During the third quarter of 2024, at the conclusion of the Company's historical peak rental season, there was a reduction in the cash flow projections in the Americas RAC and International RAC segments, indicating that the carrying values of their long-lived assets may not be recoverable. As a result, the Company tested the recoverability of the "Long-Lived Assets" in its Americas RAC and International RAC segments and determined that an impairment existed. Effective August 31, 2024, the Long-Lived Assets were written down to their estimated fair values (determined using Level 2 inputs).
Source: Item 23 — RECEIPTS (FDD pages 102–301)
What This Means (2025 FDD)
According to the 2025 FDD, information regarding Dollar Rent A Car's financial instruments as of December 31, 2024, and 2023, is available in Note 12, titled "Financial Instruments."
The FDD also mentions that the fair values of Dollar Rent A Car's financial instruments, excluding an Exchange Feature, are determined using quoted market prices for similar assets or liabilities in active markets, categorized as Level 2 inputs.
Additionally, Note 3, titled "Long-Lived Assets Impairment," provides details on the impairment of long-lived assets in the Americas RAC and International RAC segments, which were written down to their estimated fair values (determined using Level 2 inputs) effective August 31, 2024. Note 5, "Revenue Earning Vehicles," contains information about the First EV Disposal Group and its classification as held for sale as of December 31, 2023, recorded at the lower of carrying value or fair value (determined using Level 2 inputs) less costs to sell.