hri-20260331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

_______________________________________________________________________________

FORM 10-Q


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2026


OR
☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number 001-33139

HERC HOLDINGS INC.

(Exact name of registrant as specified in its charter)


Delaware						20-3530539
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification Number)

27500 Riverview Center Blvd.

Bonita Springs, Florida 34134

(239) 301-1000

(Address, including Zip Code, and telephone number,

including area code, of registrant's principal executive offices)

Not Applicable

(Former name, former address and former fiscal year,

if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of exchange on which registered

Common Stock, par value $0.01 per share

HRI

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Smaller reporting company

☐

Accelerated filer

☐

Emerging growth company

☐

Non-accelerated filer

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of April 24, 2026, there were 33,393,051 shares of the registrant's common stock, $0.01 par value, outstanding.

Table of Contents

HERC HOLDINGS INC. AND SUBSIDIARIES

TABLE OF CONTENTS



		Page
Cautionary Note Regarding Forward-Looking Statements		1
PART I. FINANCIAL INFORMATION
ITEM 1.	Financial Statements	2
	Condensed Consolidated Balance Sheets as of March 3 1 , 202 6 and December 31, 202 5	2
	Condensed Consolidated Statements of Operations for the Three Months Ended March 31 , 202 6 and 202 5	3
	Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three Months Ended M arch 3 1 , 202 6 and 202 5	4
	Condensed Consolidated Statements of Changes in Equity for the Three Months Ended March 3 1 , 202 6 and 202 5	5
	Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 3 1 , 202 6 and 202 5	6
	Notes to Condensed Consolidated Financial Statements	8
ITEM 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	23
ITEM 3.	Quantitative and Qualitative Disclosures About Market Risk	29
ITEM 4.	Controls and Procedures	29
PART II. OTHER INFORMATION
ITEM 1.	Legal Proceedings	30
ITEM 1A.	Risk Factors	30
ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds	30
ITEM 5.	Other Information	30
ITEM 6.	Exhibits	31
SIGNATURE		32

Table of Contents

HERC HOLDINGS INC. AND SUBSIDIARIES

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q for the period ended March 31, 2026 (this "Report") includes "forward-looking statements," within the meaning of Section 21E of the Securities Exchange Act, as amended, and the Private Securities Litigation Reform Act of 1995. Forward-looking statements are generally identified by the words "estimates," "expects," "anticipates," "projects," "plans," "intends," "believes," "forecasts," "looks," and future or conditional verbs, such as "will," "should," "could" or "may," as well as variations of such words or similar expressions. All forward-looking statements are based upon our current expectations and various assumptions and apply only as of the date of this Report. Our expectations, beliefs and projections are expressed in good faith and we believe there is a reasonable basis for them. However, there can be no assurance that our expectations, beliefs and projections will be achieved. You should not place undue reliance on the forward-looking statements.

Factors that could cause actual results to differ materially from those projected include, but are not limited to, the following:

•the cyclical nature of our industry and our dependence on the levels of capital investment and maintenance expenditures by our customers;

•the competitiveness of our industry, including the potential downward pricing pressures or the inability to increase prices;

•our dependence on relationships with key suppliers;

•our heavy reliance on communication networks, centralized information technology systems and third party technology and services and our ability to maintain, upgrade or replace our information technology systems;

•our ability to respond adequately to changes in technology and customer demands;

•our ability to attract and retain key management, sales and trades talent;

•our rental fleet is subject to residual value risk upon disposition;

•the impact of climate change and the legal and regulatory responses to such change;

•our ability to execute our strategy to grow through strategic transactions;

•our ability to integrate H&E Equipment Services, Inc. into our business and realize all the anticipated benefits of the transaction; and

•our significant indebtedness.

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. All forward-looking statements are expressly qualified in their entirety by such cautionary statements. We undertake no obligation to update or revise forward-looking statements that have been made to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events.

Table of Contents

PART I—FINANCIAL INFORMATION

ITEM l. FINANCIAL STATEMENTS

HERC HOLDINGS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions, except par value)


	March 31, 2026		December 31, 2025
ASSETS	(Unaudited)
Current assets:
Cash and cash equivalents	$	43	$	52
Receivables, net of allowances of $31 and $31, respectively	760		769
Prepaid expenses	62		72
Other current assets	54		63
Total current assets	919		956
Rental equipment, net	5,737		5,880
Property and equipment, net	867		868
Right-of-use lease assets	1,509		1,489
Intangible assets, net	1,627		1,665
Goodwill	2,861		2,873
Other long-term assets	44		45
Total assets	$	13,564	$	13,776
LIABILITIES AND EQUITY
Current liabilities:
Current maturities of long-term debt and financing obligations	$	32	$	32
Current maturities of operating lease liabilities	57		56
Accounts payable	218		337
Accrued liabilities	321		305
Total current liabilities	628		730
Long-term debt, net	7,958		8,021
Financing obligations, net	94		95
Operating lease liabilities	1,502		1,479
Deferred tax liabilities	1,426		1,446
Other long-term liabilities	58		57
Total liabilities	11,666		11,828
Commitments and contingencies (Note 12)
Equity:
Preferred stock, $0.01 par value, 13.3 shares authorized, no shares issued and outstanding	—		—
Common stock, $0.01 par value, 133.3 shares authorized, 38.3 and 38.2 shares issued and 33.4 and 33.3 shares outstanding	—		—
Additional paid-in capital	2,449		2,448
Retained earnings	500		547
Accumulated other comprehensive loss	(124)		(120)
Treasury stock, at cost, 4.9 shares and 4.9 shares	(927)		(927)
Total equity	1,898		1,948
Total liabilities and equity	$	13,564	$	13,776

The accompanying notes are an integral part of these financial statements.

Table of Contents

HERC HOLDINGS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Unaudited

(In millions, except per share data)


	Three Months Ended March 31,
	2026		2025
Revenues:
Equipment rental	$	981	$	739
Sales of rental equipment	138		105
Sales of new equipment, parts and supplies	13		11
Service and other revenue	7		6
Total revenues	1,139		861
Expenses:
Direct operating	453		327
Depreciation of rental equipment	242		172
Cost of sales of rental equipment	109		76
Cost of sales of new equipment, parts and supplies	9		8
Selling, general and administrative	146		118
Transaction expenses	5		74
Non-rental depreciation and amortization	73		33
Interest expense, net	128		62

Other income, net	(3)		(1)
Total expenses	1,162		869
Loss before income taxes	(23)		(8)
Income tax provision	(1)		(10)
Net loss	$	(24)	$	(18)

Weighted average shares outstanding:
Basic	33.3		28.5
Diluted	33.3		28.5
Loss per share:
Basic	$	(0.72)	$	(0.63)
Diluted	$	(0.72)	$	(0.63)

The accompanying notes are an integral part of these financial statements.

Table of Contents

HERC HOLDINGS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

Unaudited

(In millions)


	Three Months Ended March 31,
	2026		2025
Net loss	$	(24)	$	(18)
Other comprehensive loss:
Foreign currency translation adjustments	(4)		—





Total comprehensive loss	$	(28)	$	(18)

The accompanying notes are an integral part of these financial statements.

HERC HOLDINGS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

Unaudited

(In millions)


	Common Stock			Additional Paid-In Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Treasury Stock		Total Equity
	Shares	Amount
Balance at December 31, 2025	33.3	$	—	$	2,448	$	547	$	(120)	$	(927)	$	1,948
Net loss	—	—		—		(24)		—		—		(24)
Other comprehensive loss	—	—		—		—		(4)		—		(4)
Stock-based compensation charges	—	—		6		—		—		—		6
Dividends declared, $0.70 per share	—	—		—		(23)		—		—		(23)
Net settlement on vesting of equity awards	0.1	—		(7)		—		—		—		(7)
Employee stock purchase plan	—	—		2		—		—		—		2


Balance at March 31, 2026	33.4	$	—	$	2,449	$	500	$	(124)	$	(927)	$	1,898


	Common Stock			Additional Paid-In Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Treasury Stock		Total Equity
	Shares	Amount
Balance at December 31, 2024	28.4	$	—	$	1,832	$	633	$	(142)	$	(927)	1,396
Net loss	—	—		—		(18)		—		—		(18)

Stock-based compensation charges	—	—		6		—		—		—		6
Dividends declared, $0.70 per share	—	—		—		(20)		—		—		(20)
Net settlement on vesting of equity awards	0.1	—		(7)		—		—		—		(7)
Employee stock purchase plan	—	—		1		—		—		—		1


Balance at March 31, 2025	28.5	$	—	$	1,832	$	595	$	(142)	$	(927)	$	1,358

The accompanying notes are an integral part of these financial statements.

Table of Contents

HERC HOLDINGS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Unaudited

(In millions)


	Three Months Ended March 31,
	2026		2025
Cash flows from operating activities:
Net loss	$	(24)	$	(18)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation of rental equipment	242		172
Depreciation of property and equipment	32		22
Amortization of intangible assets	41		11
Amortization of deferred debt and financing obligations costs	3		1
Stock-based compensation charges	6		6

Provision for receivables allowances	25		14

Deferred taxes	(19)		(29)
Gain on sale of rental equipment	(29)		(29)
Other	3		—
Changes in assets and liabilities, net of effects from acquisitions:
Receivables	(11)		20
Other assets	16		(20)
Accounts payable	(44)		(18)
Accrued liabilities and other long-term liabilities	36		39
Net cash provided by operating activities	277		171
Cash flows from investing activities:
Rental equipment expenditures	(272)		(187)
Proceeds from disposal of rental equipment	117		94
Non-rental capital expenditures	(41)		(33)
Proceeds from disposal of property and equipment	13		4
Acquisitions, net of cash acquired	—		(11)


Net cash used in investing activities	(183)		(133)

The accompanying notes are an integral part of these financial statements.

Table of Contents

HERC HOLDINGS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)

Unaudited

(In millions)


	Three Months Ended March 31,
	2026		2025
Cash flows from financing activities:

Proceeds from revolving lines of credit and securitization	571		520
Repayments on revolving lines of credit and securitization	(637)		(561)
Principal payments under finance lease and financing obligations	(8)		(5)

Dividends paid	(24)		(21)
Net settlement on vesting of equity awards	(7)		(7)
Proceeds from employee stock purchase plan	2		1



Net cash used in financing activities	(103)		(73)
Effect of foreign exchange rate changes on cash and cash equivalents	—		—
Net change in cash and cash equivalents during the period	(9)		(35)
Cash and cash equivalents at beginning of period	52		83
Cash and cash equivalents at end of period	$	43	$	48

Supplemental disclosure of cash flow information:
Cash paid for interest	$	63	$	66
Cash paid for income taxes, net	$	—	$	2
Supplemental disclosure of non-cash investing activity:

Non-rental capital expenditures in accounts payable	$	—	$	7
Disposal of rental equipment in accounts receivable	$	11	$	4
Supplemental disclosure of non-cash investing and financing activity:

Equipment acquired through finance lease	$	10	$	3

The accompanying notes are an integral part of these financial statements.

Table of Contents

HERC HOLDINGS INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Unaudited

Note 1—Organization and Description of Business

Herc Holdings Inc. ("we," "us," "our," "Herc Holdings," or "the Company") is one of the leading equipment rental suppliers with 609 locations in North America as of March 31, 2026. The Company conducts substantially all of its operations through subsidiaries, including Herc Rentals Inc. ("Herc"). With over 60 years of experience, the Company is a full-line equipment rental supplier offering a broad portfolio of equipment for rent, services and technologies aimed at helping customers work more efficiently, effectively and safely. In addition to its principal business of equipment rental, the Company sells used equipment and contractor supplies such as construction consumables, tools, small equipment and safety supplies; provides repair, maintenance, equipment management services and safety training to certain of its customers; offers equipment re-rental services and provides on-site support to its customers; and provides ancillary services such as equipment transport, rental protection, cleaning, refueling and labor.

The Company's fleet includes aerial, earthmoving, material handling, trucks and trailers, air compressors, compaction, and lighting equipment. The Company's equipment rental business is supported by ProSolutions, its industry-specific solutions-based services, which includes power generation, climate control, remediation and restoration, pumps, trench shoring and its ProContractor professional grade tools. The Company's ProControl by Herc Rentals™ digital platform combines a seamless e-commerce experience with integrated project and fleet management tools, leveraging telematics and real-time analytics to help customers optimize productivity across their operations.

Note 2—Basis of Presentation and Significant Accounting Policies

Basis of Presentation

The Company prepares its condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP"). In the opinion of management, the condensed consolidated financial statements reflect all adjustments of a normal recurring nature that are necessary for a fair statement of the results for the interim periods presented. Interim results are not necessarily indicative of results for a full year. The year-end condensed consolidated balance sheet data was derived from audited financial statements, however, these condensed consolidated financial statements do not include all of the disclosures required for complete annual financial statements and, accordingly, certain information, footnotes and disclosures normally included in annual financial statements, prepared in accordance with U.S. GAAP, have been condensed or omitted in accordance with Securities and Exchange Commission ("SEC") rules and regulations. The Company believes that the disclosures made are adequate to make the information not misleading. Accordingly, the condensed consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on February 17, 2026.

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and footnotes. Actual results could differ materially from those estimates.

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.

Principles of Consolidation

The condensed consolidated financial statements include the accounts of Herc Holdings and its wholly owned subsidiaries. In the event that the Company is a primary beneficiary of a variable interest entity, the assets, liabilities and results of operations of the variable interest entity are included in the Company's condensed consolidated financial statements. The Company accounts for investments in joint ventures using the equity method when it has significant influence but not control and is not the primary beneficiary. All significant intercompany transactions have been eliminated in consolidation.

Table of Contents

HERC HOLDINGS INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Unaudited

Recently Issued Accounting Pronouncements and Disclosure Rules

Adopted

Improvements to Accounting for Internal-Use Software

In September 2025, the FASB issued Accounting Standards Update No. 2025-06, "Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 250-40)" ("ASU 2025-06"), which is intended to modernize the accounting for internal-use software costs by removing the previous "development stage" model and introducing a model that aligns with current software development methods, such as the agile approach. Capitalization of eligible costs begins when management has authorized and committed to funding the software project, it is probable the project will be completed and the software will be used for the function intended. The Company early adopted this guidance prospectively on January 1, 2026 and it did not have an impact on its financial position, results of operations, or cash flows.

Not Yet Adopted

Disaggregation of Income Statement Expenses

In November 2024, the FASB issued Accounting Standards Update No. 2024-03, "Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40)" ("ASU 2024-03"), which is intended to improve the disclosures about a public entity's expenses and address requests from investors for more detailed information about the types of expenses in commonly presented expense captions. The guidance is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted. ASU 2024-03 should be applied either on a prospective or retrospective basis. The Company is currently evaluating the potential impact of adopting this new guidance on its consolidated financial statements and related disclosures.

Note 3—Revenue Recognition

The Company is principally engaged in the business of renting equipment. Ancillary to the Company’s principal equipment rental business, the Company also sells used rental equipment, new equipment and parts and supplies and offers certain services to support its customers. The Company operates in North America with revenue from the United States representing 94.9% of total revenue for the three months ended March 31, 2026, compared to 93.6% for the same period in 2025.

The Company’s rental transactions are accounted for under Accounting Standards Codification ("ASC") Topic 842, Leases ("Topic 842"). The Company’s sale of rental and new equipment, parts and supplies along with certain services provided to customers are accounted for under ASC Topic 606, Revenue from Contracts with Customers ("Topic 606"). The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to a customer. The amount of revenue recognized reflects the consideration the Company expects to be entitled to in exchange for such products or services.

Table of Contents

HERC HOLDINGS INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Unaudited

The following summarizes the applicable accounting guidance for the Company’s revenues for the three months ended March 31, 2026 and 2025 (in millions):


	Three Months Ended March 31,
	2026						2025
	Topic 842		Topic 606		Total		Topic 842		Topic 606		Total
Revenues:
Equipment rental	$	884	$	—	$	884	$	666	$	—	$	666
Other rental revenue:
Delivery and pick-up	—		62		62		—		48		48
Other	35		—		35		25		—		25
Total other rental revenues	35		62		97		25		48		73
Total equipment rental	919		62		981		691		48		739
Sales of rental equipment	—		138		138		—		105		105
Sales of new equipment, parts and supplies	—		13		13		—		11		11
Service and other revenues	—		7		7		—		6		6
Total revenues	$	919	$	220	$	1,139	$	691	$	170	$	861

Topic 842 Revenues

Equipment Rental Revenue

The Company offers a broad portfolio of equipment for rent on daily, weekly or monthly basis, with substantially all rental agreements cancellable upon the return of the equipment. Virtually all customer contracts can be canceled by the customer with no penalty by returning the equipment within one day; therefore, the Company does not allocate the transaction price between the different contract elements.

Equipment rental revenue includes revenue generated from renting equipment to customers and is recognized on a straight-line basis over the length of the rental contract. As part of this straight-line methodology, when the equipment is returned, the Company recognizes as incremental revenue the excess, if any, between the amount the customer is contractually required to pay, which is based on the rental contract period applicable to the actual number of days the equipment was out on rent, over the cumulative amount of revenue recognized to date. In any given accounting period, the Company will have customers return equipment and be contractually required to pay more than the cumulative amount of revenue recognized to date under the straight-line methodology. Also included in equipment rental revenue is re-rent revenue in which the Company will rent specific pieces of equipment from vendors and then re-rent that equipment to its customers. Provisions for discounts, rebates to customers and other adjustments are provided for in the period the related revenue is recorded.

Other

Other equipment rental revenue is primarily comprised of fees for the Company’s rental protection program and environmental charges. Fees paid for the rental protection program allow customers to limit the risk of financial loss in the event the Company’s equipment is damaged or lost. Fees for the rental protection program and environmental recovery fees are recognized on a straight-line basis over the length of the rental contract.

Topic 606 Revenues

Delivery and Pick-up

Delivery and pick-up revenue associated with renting equipment is recognized when the services are performed.

Table of Contents

HERC HOLDINGS INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Unaudited

Sales of Rental Equipment, New Equipment, Parts and Supplies

The Company sells its used rental equipment, new equipment, parts and supplies. Revenues recorded for each category are as follows (in millions):


	Three Months Ended March 31,
	2026		2025
Sales of rental equipment	$	138	$	105
Sales of new equipment	6		5
Sales of parts and supplies	7		6
Total	$	151	$	116

The Company recognizes revenue from the sale of rental equipment, new equipment, parts and supplies when control of the asset transfers to the customer, which is typically when the asset is picked up by or delivered to the customer and when significant risks and rewards of ownership have passed to the customer. Sales and other tax amounts collected from customers and remitted to government authorities are accounted for on a net basis and, therefore, excluded from revenue.

The Company routinely sells its used rental equipment in order to manage repair and maintenance costs, as well as the composition, age and size of its fleet. The Company disposes of used equipment through a variety of channels including retail sales to customers and other third parties, sales to wholesalers, brokered sales and auctions.

The Company also sells new equipment, parts and supplies. The types of new equipment that the Company sells vary by location and include a variety of ProContractor tools and supplies, small equipment (such as work lighting, generators, pumps, compaction equipment and power trowels), safety supplies and expendables.

Under Topic 606, the accounts receivable balance, prior to allowances for credit losses, for the sale of rental equipment, new equipment, parts and supplies, was approximately $52 million and $41 million as of March 31, 2026 and December 31, 2025, respectively.

Service and Other Revenues

Service and other revenues primarily include revenue earned from equipment management and similar services for rental customers which includes providing customer support functions such as dedicated in-plant operations, plant management services, equipment and safety training, and repair and maintenance services particularly to industrial customers who request such services.

The Company recognizes revenue for service and other revenues as the services are provided. Service and other revenues are typically invoiced together with a customer’s rental amounts and, therefore, it is not practical for the Company to separate the accounts receivable amount related to services and other revenues that are accounted for under Topic 606; however, such amount is not considered material.

Receivables and Contract Assets and Liabilities

Most of the Company's equipment rental revenue is accounted for under Topic 842. The customers that are responsible for the remaining equipment rental revenue that is accounted for under Topic 606 are generally the same customers that rent the Company's equipment. Concentration of credit risk with respect to the Company's accounts receivable is limited because a large number of geographically diverse customers makes up its customer base. The Company manages credit risk associated with its accounts receivable at the customer level through credit approvals, credit limits and other monitoring procedures. The Company maintains allowances for credit losses that reflect the Company's estimate of the amount of receivables that the Company will be unable to collect based on its historical write-off experience.

The Company does not have material contract assets or contract liabilities associated with customer contracts. The Company's contracts with customers do not generally result in material amounts billed to customers in excess of recognizable revenue. The Company did no

SEC Form 10-Q filed by Herc Holdings Inc.