What were the 'Non-vehicle depreciation and amortization' expenses for Dollar Rent A Car in 2023?
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 discount (premium) | 74 | 61 | 53 | ||
| Stock-based compensation charges | 63 | 87 | 130 | ||
| Stock-based compensation forfeitures | (68) | — | — | ||
| Provision for receivables allowance | 120 | 93 | 57 | ||
| Deferred income taxes, net | (459) | (380) | 301 | ||
| Long-Lived Assets impairment | 1,048 | — | — | ||
| (Gain) loss on sale of non-vehicle capital assets | 3 | (162) | (5) | ||
| Changes in financial instruments | 7 | 117 | (111) | ||
| Other | (30) | 5 | 11 | ||
| Changes in assets and liabilities: | |||||
| Non-vehicle receivables | 23 | (216) | (264) | ||
| Prepaid expenses and other assets | 8 | (39) | (126) | ||
| Operating lease right-of-use assets | 386 | 365 | 280 | ||
| Non-vehicle accounts payable | (14) | (48) | 43 | ||
| Accrued liabilities | 324 | (39) | 80 | ||
| Accrued taxes, net | 21 | 1 | 73 | ||
| Operating lease liabilities | (417) | (391) | (309) | ||
| Self-insured liabilities | 152 | (6) | 19 | ||
| Net cash provided by (used in) operating activities | 2,226 | 2,471 | 2,538 | ||
| Cash flows from investing activities: | |||||
| Revenue earning vehicles expenditures | (10,524) | (9,514) | (10,596) | ||
| Proceeds from disposal of revenue earning vehicles | 7,678 | 5,498 | 6,498 | ||
| Non-vehicle capital asset expenditures | (105) | (188) | (150) | ||
| Proceeds from disposal of non-vehicle capital assets | 23 | 181 | 12 | ||
| Collateral returned in exchange for letters of credit | — | — | 19 | ||
| Return of (investment in) equity investments | (1) | (1) | (16) | ||
| Net cash provided by (used in) investing activities | (2,929) | (4,024) | (4,233) | ||
| Cash flows from financing activities: | |||||
| Proceeds from issuance of vehicle debt | 3,873 | 6,043 | 9,672 | ||
| Repayments of vehicle debt | (4,827) | (4,837) | (6,639) | ||
| Proceeds from issuance of non-vehicle debt | 4,646 | 2,490 | — | ||
| Repayments of non-vehicle debt | (2,966) | (2,018) |
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 'Depreciation and amortization, non-vehicle' expenses totaled $149 million in 2023. This figure is part of the adjustments used to reconcile net income (loss) to net cash provided by (used in) operating activities.
Depreciation and amortization are accounting methods used to allocate the cost of assets over their useful lives. 'Non-vehicle' typically refers to assets such as buildings, equipment, and leasehold improvements, excluding the rental vehicles themselves. This indicates the expense recognized for the wear and tear or obsolescence of these non-vehicle assets during the specified period.
For a prospective Dollar Rent A Car franchisee, understanding these non-vehicle depreciation and amortization expenses is crucial. It provides insight into the capital intensity and the level of investment in infrastructure and equipment required to operate the business. While franchisees may not directly incur these expenses (as they are part of the overall company financials), they reflect the franchisor's financial management and can impact the long-term stability and resources available to support the franchise system.