Dollar Rent A Car 2011 Annual Report Download - page 19

The use of automobiles and other vehicles is subject to various governmental requirements designed to limit environmental damage, including that caused by
emissions and noise. Generally, these requirements are met by the manufacturer except, on occasion, equipment failure requiring repair by the Company.
Environmental legislation and regulations and related administrative policies have changed rapidly in recent years. There is a risk that governmental
environmental requirements, or enforcement thereof, may become more stringent in the future and that the Company may be subject to additional legal
proceedings at other locations brought by government agencies or private parties for environmental matters. In addition, with respect to cleanup of
contamination, additional locations at which wastes generated by the Company may have been released or disposed, and of which the Company is currently
unaware, may in the future become the subject of cleanup for which the Company may be liable, in whole or part. Accordingly, while the Company believes
that it is in substantial compliance with applicable requirements of environmental laws, there can be no assurance that the Company’s future environmental
liabilities will not be material to the Company’s consolidated financial position, results of operations or cash flows.
Employees
As of December 31, 2011, the Company employed approximately 5,900 full-time and part-time employees. Approximately 200 of the Company’s employees
were subject to collective bargaining agreements as of December 31, 2011. The Company believes its relationship with its employees is good.
ITEM 1A. RISK FACTORS
Table of Contents
Expanding upon the factors discussed above under “Factors Affecting Forward-Looking Statements”, the following are important factors that could cause
actual results or events to differ materially from those contained in any forward-looking statements that we made. Risks that we do not know about could
arise and issues we now view as minor could become more important. If we are unable to adequately respond to any of these risks, our financial condition,
results of operations and cash flows could be materially adversely affected.
Constraints on our Growth
We face constraints on our growth and profitability, given the challenges we face in increasing our market share in the key airport and local markets
we serve, high barriers to entry in the insurance replacement market, capital and other constraints on expanding company-owned stores internationally, and the
challenges we would face in further reducing our expenses.
Economic Conditions
Our results are dependent on general economic conditions in the U.S. and Canada, our principal markets. Adverse economic conditions negatively
impacted our operations in 2009, and necessitated significant actions to mitigate their impact, including reductions in our rental fleet in response to declining
demand, and reductions in our workforce. While economic conditions have improved, uncertainty still remains as to the strength of the current
economy. Consumer confidence and spending levels have also improved in 2011; however, there is no assurance that these trends will continue. Favorable
economic trends in the United States, our principal market, could also be adversely affected by events outside the United States. These include continuing
volatility in the global financial and credit markets, particularly in certain countries in the European Union, concerns about global economic prospects, and
the continuing significant political unrest and other concerns involving certain oil-producing countries, which has contributed to price volatility for petroleum
products, and in recent periods higher average gasoline prices, which could affect both broader economic conditions and consumer discretionary spending
patterns. If economic conditions in the United States deteriorate based on these or other factors, spending on leisure travel could also decline, with consequent
negative effects on our results of operations and prospects.
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