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Stock-Based Compensation
 12 Months Ended
Dec. 31, 2020
Share-based Payment Arrangement [Abstract]  
Stock-Based Compensation Stock-Based CompensationOn May 17, 2018, the Herc Holdings Inc. 2018 Omnibus Incentive Plan (the "2018 Omnibus Plan") was approved and replaced the Herc Holdings Inc. 2008 Omnibus Incentive Plan. The 2018 Omnibus Plan provides for grants of both equity and cash awards, including non-qualified stock options, incentive stock options, stock appreciation rights, performance awards (shares and units), restricted awards (shares and units) and deferred stock units to key executives, employees, non-management directors and non-employee consultants. The total number of common shares authorized for issuance under the 2018 Omnibus Plan is 2,200,000, of which approximately 1,579,000 remains available as of December 31, 2020 for future incentive awards.
Stock-based compensation awards are measured on their grant date using a fair value method and are recognized in the statement of operations over the requisite service period. The Company's stock-based compensation expense is included in “Selling, general and administrative” expense in the Company's consolidated statements of operations.

The following table summarizes the expenses and associated income tax benefits recognized (in millions):
 Year Ended December 31,
 202020192018
Compensation expense$16.4 $19.5 $13.4 
Income tax benefit(4.2)(5.1)(3.5)
Total$12.2 $14.4 $9.9 

As of December 31, 2020, there was $18.8 million of total unrecognized compensation cost related to non-vested stock options, restricted stock units ("RSUs") and performance stock units ("PSUs"). The total unrecognized compensation cost is expected to be recognized over the remaining 1.7 years, on a weighted average basis, of the requisite service period that began on the grant dates.

Stock Options

All stock options granted had a per-share exercise price of not less than the fair market value of one share of common stock on the grant date. Stock options vest based on a minimum period of service or the occurrence of events (such as a change in control, as defined in the 2018 Omnibus Plan). No stock options are exercisable after ten years from the grant date.

The Company’s practice is to grant stock options at fair market value. Outstanding options vest over four years with terms of seven years to 10 years, assuming continued employment with certain exceptions. Vesting of the option awards is contingent upon meeting certain service conditions. The fair value of option grants is estimated using the Black-Scholes option pricing model. The fair value is then amortized on a straight-line basis over the requisite service periods of the awards, which is generally the vesting period. Use of a valuation model requires management to make certain assumptions with respect to selected model inputs. The risk-free interest rate is based on U.S. Treasury zero-coupon issues with a remaining term which approximates the expected life assumed at the date of grant. The compensation expense recognized for all stock-based awards is net of estimated forfeitures. Forfeitures were estimated based on an analysis of actual option forfeitures. There were no stock options granted during 2020, 2019 or 2018.

A summary of option activity is presented below.
Options
Weighted
Average
Exercise
Price
Weighted
Average
Remaining
Contractual
Term (Years)
Aggregate Intrinsic
Value (in millions of dollars) (a)
Outstanding at December 31, 2019342,498 $37.94 
Granted— — 
Exercised(165,327)33.51 
Forfeited or expired(21,580)46.99 
Outstanding at December 31, 2020155,591 $41.38 
Expected to Vest at December 31, 2020— $— — $— 
Exercisable at December 31, 2020155,591 $41.38 3.1$3.9 
(a) Market price per share on December 31, 2020 was $66.41. The intrinsic value is zero for options with exercise prices above market value.
Stock options as of December 31, 2020:
Options OutstandingOptions Exercisable
Range of Exercise PricesNumber OutstandingWeighted
Average
Exercise
Price
Weighted
Average
Remaining
Contractual
Term (Years)
Number OutstandingWeighted
Average
Exercise
Price		Weighted
Average
Remaining
Contractual
Term (Years)
  $30.01-40.00111,006 33.19 2.6111,006 33.19 2.6
  40.01-50.00629 43.59 0.2629 43.59 0.2
  50.01-60.0029,892 58.22 4.529,892 58.22 4.5
  70.01-80.0014,064 70.14 4.214,064 70.14 4.2
155,591 $41.38 155,591 $41.38 

Additional information pertaining to stock option activity under the Omnibus Plan is as follows (in millions):
Year Ended December 31,
202020192018
Aggregate intrinsic value of stock options exercised (a)
$3.7 $0.3 $0.5 
Cash received from the exercise of stock options 5.6 0.8 0.5 
Tax benefit realized on exercise of stock options1.0 0.1 0.1 
(a)    The intrinsic value is the difference between the market value of the shares on the exercise date and the exercise price of the option.

Performance Stock Units

PSUs will vest based on the achievement of pre-determined performance goals over performance periods determined by the Company's Compensation Committee. Each of the units granted represent the right to receive one share of the Company's common stock on a specified future date. Compensation expense for PSUs is based on the grant date fair value and is recognized ratably over the three year vesting period. In addition to the service vesting condition, the PSUs have an additional vesting condition which stipulates the number of units to be awarded being based on the achievement of certain performance measures over the applicable measurement period and can range from 0% to 200% of the target. In the event of an employee's death or disability, a pro rata portion of the employee's PSUs will vest to the extent performance goals are achieved at the end of the performance period.

A summary of the PSU activity is presented below.
Units
Weighted
Average Grant Date
Fair Value
Nonvested at December 31, 2019321,793 $48.91 
Granted181,693 38.56 
Vested(143,696)47.78 
Performance change49,716 48.33 
Forfeited(18,741)45.57 
Nonvested at December 31, 2020390,765 $44.60 

The weighted average per share grant-date fair values of PSUs granted during 2020, 2019 and 2018 were $38.56, $40.79 and $64.51, respectively. The total fair value of PSUs that vested during 2020, 2019 and 2018 were $6.9 million, $3.4 million and $3.2 million, respectively.

Almost all PSUs granted in 2020, 2019 and 2018 include vesting conditions based on the achievement of the Company's return on invested capital performance measured over a three-year period starting from the year of grant.
Restricted Stock Units

RSUs granted under the Omnibus Plan will vest based on a minimum period of service or the occurrence of events (such as a change in control, as defined in the Omnibus Plan) specified by the Compensation Committee. Compensation expense for RSUs is based on the grant date fair value and is recognized ratably over the vesting period which generally ranges from one year to three years.

A summary of the RSU activity under the Omnibus Plan is presented below.
UnitsWeighted
Average Grant Date
Fair Value
Nonvested at December 31, 2019411,069 $47.17 
Granted292,669 35.36 
Vested(267,688)46.41 
Forfeited(23,296)41.95 
Nonvested at December 31, 2020412,754 $39.65 

The weighted average per share grant date fair values of RSUs granted during 2020, 2019 and 2018 were $35.36, $41.18 and $62.89, respectively. The total fair value of RSUs that vested during 2020, 2019 and 2018 was $12.4 million, $10.7 million and $3.0 million, respectively.