Business Combinations (Tables)

6 Months Ended

Jun. 30, 2023

Business Combination and Asset Acquisition [Abstract]

Schedule of Pro Forma Supplementary Data

The unaudited pro forma supplementary data presented in the table below (in millions) gives effect to the acquisition of Cloverdale as if it had been included in the Company's condensed consolidated results for the entire period reflected. 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 period presented, nor is it indicative of the Company's future results.


	Three Months Ended June 30, 2022						Six Months Ended June 30, 2022
	Herc		Cloverdale		Total		Herc		Cloverdale		Total
Historic/pro forma total revenues	$	640	$	4	$	644	$	1,208	$	25	$	1,233
Historic/combined pretax income	98		2		100		165		8		173
Pro forma adjustments to consolidated pretax income(a):
Impact of fair value adjustments/useful life changes on depreciation(b)			—		—				2		2

Interest expense(c)			—		—				(1)		(1)
Elimination of historic interest(d)			—		—				1		1
Elimination of merger related costs(e)			—		—				1		1
Pro forma pretax income					$	100					$	176

(a) Pro forma adjustments during the three months ended June 30, 2022 rounded to zero.

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

(c) As discussed above, the Company funded the Cloverdale acquisition 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 acquisition were eliminated as they were assumed to have been recognized prior to the pro forma acquisition date.