Hertz Can’t Promise That Its Accounting Troubles Won’t Get Worse

UPDATE: I relied on that figure provided by The Journal that incorrectly stated that the cost of the accounting error was $180 million. The correction states it hit profits by $153 million. Sorry for the error.     

Hertz, a car-rental company once endorsed by O.J. Simpson, disclosed that its shoddy accounting have cost the company $180 $153 million so far. The company is restating its financials for 2011-2013 but "stressed that the investigation is ongoing and its financial records could be subject to substantial change."

Also, the company says you shouldn't expect updated financial statements "before mid-2015" or that "no additional adjustments will be identified." So there's that. Best of luck to the PwC team sitting on this nightmare.  

[WSJ, 8-K]

Have something to add to this story? Give us a shout by email, Twitter, or text/call the tipline at 202-505-8885. As always, all tips are anonymous.

Related articles

Sorry, Lease Accounting Rules Don’t Care That You’re Trying to Keep Patients Alive

The Wall Street Journal recently checked in with the CFO of Genesis Healthcare to see how the transition to the new lease accounting standard is going. Not good, apparently: Genesis Healthcare Inc., a Kennett Square, Pa.-based post-acute health-care provider, for instance, had to chase down hundreds of small equipment leases, finance chief Tom DiVittorio said. Mr. DiVittorio […]