Hertz 2008 Annual Report Download - page 184

HERTZ GLOBAL HOLDINGS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
During 2008, approximately $0.6 million in net, after-tax interest and penalties were recognized.
Approximately $6.0 million of net, after-tax interest and penalties are accrued in the consolidated
balance sheet at December 31, 2008. During 2007, we recognized approximately $2.2 million in net,
after-tax interest and penalties. We had approximately $12.0 million of net, after-tax interest and penalties
accrued in our consolidated balance sheet at December 31, 2007.
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):
Years ended December 31,
2008 2007 2006
Rents ........................................... $144,238 $130,954 $120,726
Concession fees:
Minimum fixed obligations ........................... 251,015 301,479 279,487
Additional amounts, based on revenues ................. 268,792 209,589 194,220
Total ......................................... $664,045 $642,022 $594,433
As of December 31, 2008, minimum obligations under existing agreements referred to above are
approximately as follows (in thousands of dollars):
Rents Concessions
2009 ................................................... $117,904 $258,828
2010 ................................................... 97,208 185,689
2011 ................................................... 77,723 151,384
2012 ................................................... 62,432 126,905
2013 ................................................... 49,064 90,389
Years after 2013 ........................................... 183,282 304,026
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.
In addition to the above, we have various leases on revenue earning equipment and office and computer
equipment under which the following amounts were expensed (in thousands of dollars):
Years ended December 31,
2008 2007 2006
Revenue earning equipment ............................. $ 90,749 $76,329 $31,255
Office and computer equipment .......................... 10,260 11,271 14,718
Total ............................................ $101,009 $87,600 $45,973
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