Herc Holdings Inc.

Interest expense, including the amortization of capitalized debt issuance costs, increased as a result of the financing transactions executed in June 2025 related to the Acquisition.

SEC original ↗Herc Holdings Inc. — Earnings release (8-K exhibit)EX-99Dec 2, 2025

Herc financed the transactions in the Merger Agreement with a combination of newly issued debt and/or borrowings and drawings using existing capacity under its existing ABL facility.

SEC original ↗Herc Holdings Inc. — Earnings release (8-K exhibit)EX-99Dec 2, 2025

For purposes of determining the impact on the unaudited pro forma condensed combined statements of operations, historical interest expense related to extinguished debt was 9 HERC HOLDINGS INC.

SEC original ↗Herc Holdings Inc. — Earnings release (8-K exhibit)EX-99Dec 2, 2025

AND SUBSIDIARIES NOTES TO UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION (In millions, except per share data) eliminated and interest expense was calculated for new borrowings based on the borrowings rates applicable to the financing transactions, including a weighted-average borrowing rate of 6.6 percent on long-term debt.

SEC original ↗Herc Holdings Inc. — Earnings release (8-K exhibit)EX-99Dec 2, 2025

An assumed interest rate increase of 100 basis points related to the new borrowings would increase annual interest expense by approximately $43 million and reduce net income per share by approximately $0.98.

SEC original ↗Herc Holdings Inc. — Earnings release (8-K exhibit)EX-99Dec 2, 2025

Additionally, the Company paid cash to extinguish $ 1.4 billion of outstanding H&E debt that was not assumed as part of the acquisition.

SEC original ↗Herc Holdings Inc. — 10-Q Quarterly report10-QOct 27, 2026

Net income is also used when determining other capital allocation priorities such as completing acquisitions, paying dividends or repurchasing Company shares.

SEC original ↗Herc Holdings Inc. — 10-Q Quarterly report10-QOct 27, 2026

Legal Proceedings 30 ITEM 1A.

SEC original ↗Herc Holdings Inc. — 10-Q Quarterly report10-QOct 27, 2026

There are a number of risks, uncertainties and other important factors that could cause our actual results to differ materially from those suggested by our forward-looking statements, including those set forth in our Annual Report on Form 10-K for the year ended December 31, 2025 under Item 1A "Risk Factors," in Part II, Item 1A of this Report, and in our other filings with the Securities and Exchange Commission.

SEC original ↗Herc Holdings Inc. — 10-Q Quarterly report10-QOct 27, 2026

Significant estimates inherent in the preparation of the condensed consolidated financial statements include receivables allowances, depreciation of rental equipment, the recoverability of long-lived assets, useful lives and impairment of long-lived tangible and intangible assets including goodwill and trade name, valuation of acquired intangible assets, pension and postretirement benefits, valuation of stock-based compensation, reserves for litigation and other contingencies, accounting for income taxes, and valuation of an earnout receivable, among others.

SEC original ↗Herc Holdings Inc. — 10-Q Quarterly report10-QOct 27, 2026

Pension and Other Post-Employment Benefits Foreign Currency Items Accumulated Other Comprehensive Income (Loss) Balance at December 31, 2025 $ ( 12 ) $ ( 108 ) $ ( 120 ) Other comprehensive loss ( 12 ) ( 12 ) Balance at September 30, 2026 $ ( 12 ) $ ( 120 ) $ ( 132 ) Note 12 Commitments and Contingencies Legal Proceedings The Company is subject to a number of claims and proceedings that generally arise in the ordinary conduct of its business.

SEC original ↗Herc Holdings Inc. — 10-Q Quarterly report10-QOct 27, 2026

Litigation is subject to many uncertainties and there can be no assurance as to the outcome of the individual litigated matters.

SEC original ↗Herc Holdings Inc. — 10-Q Quarterly report10-QOct 27, 2026

GAAP") requires us to make estimates and assumptions that affect the reported amounts in our unaudited condensed consolidated financial statements and the accompanying notes including receivables allowances, depreciation of rental equipment, the recoverability of long-lived assets, useful lives and impairment of long-lived tangible and intangible assets including goodwill and trade name, pension and postretirement benefits, valuation of stock-based compensation, reserves for litigation and other contingencies, accounting for income taxes and other matters arising during the normal course of business.

SEC original ↗Herc Holdings Inc. — 10-Q Quarterly report10-QOct 27, 2026