Hertz 2007 Annual Report Download - page 166

HERTZ GLOBAL HOLDINGS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Note 8—Lease and Concession Agreements
We have various concession agreements, which provide for payment of rents and a percentage of
revenue with a guaranteed minimum, and real estate leases under which the following amounts were
expensed (in thousands of dollars):
Successor Predecessor
Years ended
December 31, For the periods from
December 21, January 1,
2005 to 2005 to
December 31, December 20,
2007 2006 2005 2005
Rents .............................. $130,954 $120,726 $ 3,500 $112,627
Concession fees:
Minimum fixed obligations ............. 301,479 279,487 7,653 246,304
Additional amounts, based on revenues . . . 209,589 194,220 5,544 178,431
Total ........................... $642,022 $594,433 $16,697 $537,362
As of December 31, 2007, minimum obligations under existing agreements referred to above are
approximately as follows (in thousands of dollars):
Rents Concessions
2008 ................................................... $111,080 $251,298
2009 ................................................... 92,394 197,722
2010 ................................................... 71,871 143,402
2011 ................................................... 55,700 110,663
2012 ................................................... 45,245 89,562
Years after 2012 ........................................... 182,267 367,295
Many of our concession agreements and real estate leases require us to pay or reimburse operating
expenses, such as common area charges and real estate taxes, to pay concession fees above
guaranteed minimums or additional rent based on a percentage of revenues or sales (as defined in
those agreements) arising at the relevant premises, or both. Such obligations are not reflected in the
table of minimum future obligations appearing immediately above.
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