What were the 'Non-vehicle debt interest, net' for Dollar Rent A Car in 2022?
Dollar_Rent_A_Car Franchise · 2025 FDDAnswer from 2025 FDD Document
| Year Ended December 31, 2022 | ||||||
|---|---|---|---|---|---|---|
| (In millions) | Americas RAC | International RAC | Total | |||
| Revenues | $ | 7,280 | $ | 1,405 | $ | 8,685 |
| Significant segment expenses: | ||||||
| Direct vehicle and operating | 4,080 | 728 | 4,808 | |||
| Depreciation of revenue earning vehicles and lease charges, net(1) | 553 | 148 | 701 | |||
| Selling, general and administrative | 351 | 180 | 531 | |||
| Other segment items(2) | 4 | (1) | 3 | |||
| Segment profit (loss): Adjusted EBITDA | $ | 2,292 | $ | 350 | $ | 2,642 |
| Corporate(3) | (337) | |||||
| Total Hertz Global and Hertz Adjusted EBITDA | 2,305 | |||||
| Adjustments: | ||||||
| Non-vehicle depreciation and amortization | (142) | |||||
| Non-vehicle debt interest, net | (169) | |||||
| Vehicle debt-related charges(4) | (35) | |||||
| Restructuring and restructuring related charges(5) | (45) |
Source: Item 23 — RECEIPTS (FDD pages 102–301)
What This Means (2025 FDD)
According to Dollar Rent A Car's 2025 Franchise Disclosure Document, the company's 'Non-vehicle debt interest, net' for the year 2022 was $(169) million. This figure represents the total interest expenses, net of any income, that Dollar Rent A Car incurred on debts not related to their vehicle fleet during that year. These expenses are a component of the broader adjustments made to calculate the income (loss) before income taxes for Hertz Global.
Specifically, the FDD breaks down the 'Non-vehicle interest expense, net' across different segments of the business. For the Americas RAC segment, it was $(80) million, while for the International RAC segment, it was zero. The corporate segment accounted for $249 million. When these figures are consolidated, the total 'Non-vehicle debt interest, net' for Hertz Global amounted to $169 million for the year 2022.
For a prospective Dollar Rent A Car franchisee, understanding these figures provides insight into the financial structure and obligations of the parent company. While franchisees are not directly responsible for these debts, the overall financial health of Dollar Rent A Car can impact the support, resources, and stability available to franchisees. Therefore, it's beneficial to consider these figures as part of a comprehensive assessment of the franchise opportunity.