HERC HOLDINGS INC Goodwill & Intangibles Disclosure
| Years Ended December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Balance at the beginning of the period: | |||||||||||
| Goodwill, gross | $ | 1,334 | $ | 1,154 | |||||||
| Accumulated impairment losses | (664) | (671) | |||||||||
| Goodwill | 670 | 483 | |||||||||
| Additions | 2,201 | 190 | |||||||||
| Currency translation | 2 | (3) | |||||||||
| Balance at the end of the period: | |||||||||||
| Goodwill, gross | 3,541 | 1,334 | |||||||||
| Accumulated impairment losses | (668) | (664) | |||||||||
| Goodwill | $ | 2,873 | $ | 670 | |||||||
| December 31, 2025 | |||||||||||||||||
| Gross Carrying Amount | Accumulated Amortization | Net Carrying Value | |||||||||||||||
| Finite-lived intangible assets: | |||||||||||||||||
| Customer relationships | $ | 1,552 | $ | (203) | $ | 1,349 | |||||||||||
| Non-compete agreements | 19 | (10) | 9 | ||||||||||||||
Internally developed software(a) | 53 | (17) | 36 | ||||||||||||||
| Total | 1,624 | (230) | 1,394 | ||||||||||||||
| Indefinite-lived intangible assets: | |||||||||||||||||
| Trade name | 271 | — | 271 | ||||||||||||||
| Total intangible assets, net | $ | 1,895 | $ | (230) | $ | 1,665 | |||||||||||
| December 31, 2024 | |||||||||||||||||
| Gross Carrying Amount | Accumulated Amortization | Net Carrying Value | |||||||||||||||
| Finite-lived intangible assets: | |||||||||||||||||
| Customer relationships | $ | 363 | $ | (100) | $ | 263 | |||||||||||
| Non-compete agreements | 19 | (6) | 13 | ||||||||||||||
Internally developed software(a) | 39 | (14) | 25 | ||||||||||||||
| Total | 421 | (120) | 301 | ||||||||||||||
| Indefinite-lived intangible assets: | |||||||||||||||||
| Trade name | 271 | — | 271 | ||||||||||||||
| Total intangible assets, net | $ | 692 | $ | (120) | $ | 572 | |||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 17, 2026 | Showing above |
| 2024 | Feb 13, 2025 | |
| 2023 | Feb 13, 2024 | |
| 2022 | Feb 14, 2023 | |
| 2021 | Feb 10, 2022 | |
| 2020 | Feb 18, 2021 | |
| 2019 | Feb 27, 2020 | |
| 2018 | Feb 28, 2019 | |
| 2017 | Feb 28, 2018 | |
| 2016 | Mar 15, 2017 | |
| 2015 | Feb 29, 2016 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.