What was the 'Income (loss) before income taxes - Hertz' for Dollar Rent A Car in 2023?
Dollar_Rent_A_Car Franchise · 2025 FDDAnswer from 2025 FDD Document
| | | (1,541) | | Adjustments: | | | | | Non-vehicle depreciation and amortization | | | (139) | | Non-vehicle debt interest, net | | | (375) | | Vehicle debt-related charges(4) | | | (45) | | Restructuring and restructuring related charges(5) | | | (66) | | Unrealized gains (losses) on financial instruments(6) | | | (7) | | Non-cash stock-based compensation forfeitures(7) | | | 64 | | Bankruptcy-related litigation reserve(8) | | | (292) | | Long-Lived Assets impairment(9) | | | (1,048) | | Other items(10) | | | (63) | | Income (loss) before income taxes - Hertz | | | (3,512) |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
| (In millions) | Americas RAC | International | Total | |
|---|---|---|---|---|
| RAC | ||||
| Change in fair value of Public Warrants(11) | 275 | |||
| Income (loss) before income taxes - Hertz Global | Year Ended December 31, 2023 | $ (3,237) | ||
| (In millions) | Americas RAC | International RAC | Total | |
| Revenues | $ | 7,722 | $ 1,649 | $ 9,371 |
| Significant segment expenses: | ||||
| Direct vehicle and operating | 4,582 | 880 | 5,462 | |
| Depreciation of revenue earning vehicles and lease charges, net(1) | 1,775 | 264 | 2,039 | |
| Selling, general and administrative | 501 | 227 | 728 | |
| Other |
Source: Item 23 — RECEIPTS (FDD pages 102–301)
What This Means (2025 FDD)
According to the 2025 Dollar Rent A Car FDD, the Income (loss) before income taxes for Hertz was $123 million for the year ended December 31, 2023. This figure represents the earnings before any deductions for income taxes.
It is important to note that this income figure is specifically for 'Hertz' and not 'Hertz Global'. The FDD also lists 'Income (loss) before income taxes - Hertz Global' as $(3,237) million for the same period. This indicates a significant difference in financial performance between the parent company (Hertz Global) and the Hertz operating entity.
A prospective Dollar Rent A Car franchisee should consider these figures in the context of the overall financial health of the Hertz organization. Understanding the distinction between Hertz and Hertz Global, as well as the factors contributing to their respective income or loss positions, is crucial for assessing the stability and potential risks associated with investing in a Dollar Rent A Car franchise.