Equity and Earnings (Loss) Per Share

12 Months Ended

Dec. 31, 2015

Share Repurchase Program

In March 2014, the Company announced a $1 billion share repurchase program (the "2014 share repurchase program"). The program replaced the $300 million share repurchase program that the Company announced in 2013, under which the Company repurchased 4 million shares of its common stock at an aggregate purchase price of $87 million during the year ended December 31, 2013. The 2014 share repurchase program permits the Company to purchase shares through a variety of methods, including in the open market or through privately negotiated transactions, in accordance with applicable securities laws. It does not obligate the Company to make any repurchases at any specific time or situation. The timing and extent to which the Company repurchases its shares will depend upon, among other things, market conditions, share price, liquidity targets and other factors. Share repurchases may be commenced or suspended at any time or from time to time without prior notice. During 2015, the Company repurchased 37 million shares at an aggregate purchase price of approximately $605 million under the 2014 share repurchase program. Repurchases are included in treasury stock in the accompanying condensed consolidated balance sheets as of December 31, 2015. As of December 31, 2015, the approximate dollar value of shares that may yet be purchased under the 2014 share repurchase program is $396 million.

Earnings (Loss) Per Share

Basic earnings per share has been computed based upon the weighted average number of common shares outstanding. Diluted earnings per share has been computed based upon the weighted average number of common shares outstanding plus the effect of all potentially dilutive common stock equivalents, except when the effect would be anti-dilutive.

The following table sets forth the computation of basic and diluted earnings per share:



	Years Ended December 31,
(In millions, except per share data)	2015		2014			2013
Basic and diluted earnings per share:
Numerator:
Net income (loss), basic	$	273	$	(82	)	$	302
Interest on Convertible Senior Notes, net of tax^(a)	—		—			8
Net income (loss), diluted	$	273	$	(82	)	$	310
Denominator:
Basic weighted average common shares	452		454			422
Stock options, RSUs and PSUs	4		—			7
Issuance of common stock upon conversion of Convertible Senior Notes	—		—			35
Weighted average shares used to calculate diluted earnings per share	456		454			464
Antidilutive stock options, RSUs, PSUs and conversion shares	4		11			—
Earnings per share:
Basic	$	0.60	$	(0.18	)	$	0.72
Diluted	$	0.60	$	(0.18	)	$	0.67


(a)	Represents interest during the period related to amounts outstanding under the Hertz Holdings' 5.25% Convertible Senior Notes due in June 2014. Any amounts not previously converted matured in June 2014 in accordance with the terms.