Business Combinations (Tables)

12 Months Ended

Dec. 31, 2022

Business Combination and Asset Acquisition [Abstract]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The following table summarizes the purchase price allocation of the assets acquired and liabilities assumed (in millions):


	Cloverdale
Accounts receivable	$	7.6
Other current assets	1.7
Rental equipment	125.2
Property and equipment	4.2
Intangibles(a)	10.9
Total identifiable assets acquired	149.6
Current liabilities	2.1
Long term liabilities	19.5
Net identifiable assets acquired	128.0
Goodwill(b)	50.3
Net assets acquired	$	178.3

(a) The following table reflects the fair values and useful lives of the acquired intangible assets identified (in millions):


	Cloverdale		Life (years)
Customer relationships	$	10.2	10
Non-compete agreements	0.7		5
	$	10.9

(b) The level of goodwill that resulted from the acquisitions is primarily reflective of operational synergies that the Company expects to achieve that are not associated with identifiable assets, the value of Cloverdale's assembled workforce and new customer relationships expected to arise from the acquisition. All of the goodwill is expected to be deductible for income tax purposes.

Schedule of Business Acquisition, Pro Forma Information

The unaudited pro forma supplementary data presented in the table below (in millions) gives effect to the acquisitions of Cloverdale, CBS, and Rapid as if they had been included in the Company's consolidated results for the periods reflected below. The unaudited pro forma supplementary data is provided for informational purposes only and is not indicative of the Company's results of operations had the acquisitions been included for the periods presented, nor is it indicative of the Company's future results.


	Year Ended December 31, 2022						Year Ended December 31, 2021
	Herc		Cloverdale		Total		Herc		CBS		Rapid		Cloverdale		Total
Historic/pro forma total revenues	$	2,738.8	$	24.6	$	2,763.4	$	2,073.1	$	42.9	$	22.0	$	61.7	$	2,199.7
Historic/combined pretax income (loss)	433.4		7.5		440.9		290.4		6.5		(1.9)		10.6		305.6
Pro forma adjustments to consolidated pretax income (loss):
Impact of fair value adjustments/useful life changes on depreciation(a)			2.2		2.2				2.8		(4.4)		7.4		5.8
Intangible asset amortization(b)			(0.4)		(0.4)				(3.3)		(1.6)		(1.4)		(6.3)
Interest expense(c)			(1.0)		(1.0)				(1.7)		(1.1)		(2.4)		(5.2)
Elimination of historic interest(d)			0.9		0.9				1.1		1.3		1.1		3.5
Elimination of merger related costs(e)			0.6		0.6				0.3		0.3		—		0.6
Pro forma pretax income					$	443.2									$	304.0

(a) Depreciation of rental equipment was adjusted for the fair value at acquisition and changes in useful lives of equipment acquired.

(b) Intangible asset amortization was adjusted to include amortization of the acquired intangible assets.

(c) As discussed above, the Company funded the Cloverdale, CBS, and Rapid acquisitions primarily using drawings on its senior secured asset-based revolving credit facility. Interest expense was adjusted to reflect interest on such borrowings.

(d) Historic interest on debt that is not part of the combined entity was eliminated.

(e) Merger related direct costs primarily comprised of financial and legal advisory fees associated with the Cloverdale, CBS, and Rapid acquisitions were eliminated as they were assumed to have been recognized prior to the pro forma acquisition date.