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Teaching Resources Library

Accounting

Finance

Hertz Global Holdings, Inc.

By

Christopher F. Noe

Mar 27, 2018

Abstract

In the June 7-8, 2014 weekend edition of The Wall Street Journal, an article entitled “Accounting Errors Hit Hertz Hard” caught auto industry analyst Abby Devins’s attention. Devins recalled that Hertz had hinted in March about the possibility of having to restate its 2011 financial statements, but by June the situation appeared worse than previously anticipated. Keenly aware that car rental companies like Hertz provided a significant source of steady demand for automotive manufacturers, Devins was curious whether Hertz’s accounting issues could be related in some way to its large rental fleet and what impact this might have on the company’s future vehicle acquisition plans.

Learning Objectives

To understand the terminology and mechanics of depreciation as well as the economic intuition underlying its implementation.

Appropriate for the Following Course(s)

financial accounting

Hertz Global Holdings, Inc.

*An educator (non-watermarked) copy of this case is available only to individuals who hold teaching positions at academic institutions and want to use the case in a course.

THIS CASE HAS A TEACHING NOTE.