What was the total revenue for Dollar Rent A Car's Americas RAC segment 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 segment items(2) | 279 | (24) | 255 | |
| Segment profit (loss): Adjusted EBITDA | $ | 585 | $ 302 | $ 887 |
| Corporate(3) | (326) | |||
| Total Hertz Global and Hertz Adjusted EBITDA | 561 | |||
| Adjustments: |
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 Americas RAC segment generated $7,722 million in revenue during the year ended December 31, 2023. This figure represents the revenue derived from Dollar Rent A Car's rental car operations specifically within the Americas region. Understanding the revenue generated by the Americas RAC segment is crucial for prospective franchisees as it provides insight into the financial scale and market performance of the brand's primary operating region. This information allows potential investors to assess the overall health and stability of the franchise system.
In addition to revenue, the FDD provides a breakdown of significant segment expenses for the Americas RAC segment in 2023. These expenses include $4,582 million in direct vehicle and operating costs, $1,775 million in depreciation of revenue earning vehicles and lease charges, net, $501 million in selling, general, and administrative expenses, and $279 million in other segment items. Analyzing these expenses in relation to the revenue provides a clearer picture of the segment's profitability and operational efficiency.
The segment profit (loss) for Americas RAC, measured by Adjusted EBITDA, was $585 million. This indicates the earnings before interest, taxes, depreciation, and amortization, adjusted for certain items. This metric is a key indicator of the segment's financial performance and its ability to generate profit from its operations. Reviewing these figures helps potential franchisees understand the financial dynamics of Dollar Rent A Car's Americas RAC segment and its contribution to the overall financial health of the Hertz Global enterprise.