Hertz 2008 Annual Report Download - page 52

ITEM 1. BUSINESS (Continued)
Taxes
Prior to the Acquisition, Hertz and its domestic subsidiaries filed a consolidated federal income tax return
with Ford. Pursuant to a tax sharing agreement, with Ford, current and deferred taxes were reported, and
paid to Ford, as if Hertz had filed its own consolidated tax returns with its domestic subsidiaries. The tax
sharing agreement provided that Hertz was reimbursed for foreign tax credits in accordance with the
utilization of those credits by the Ford consolidated tax group.
On December 21, 2005, in connection with the Acquisition, the tax sharing agreement with Ford was
terminated. Upon termination, all tax payables and receivables with Ford were cancelled and neither
Hertz nor Ford has any future rights or obligations under the tax sharing agreement. Hertz may be
exposed to tax liabilities attributable to periods it was a consolidated subsidiary of Ford. While Ford has
agreed to indemnify Hertz for certain tax liabilities pursuant to the arrangements relating to our
separation from Ford, we cannot offer assurance that payments in respect of the indemnification
agreement will be available.
Other Relationships and Transactions
We and Ford also engage in other transactions in the ordinary course of our respective businesses.
These transactions include providing car and equipment rental services to Ford and providing insurance
and insurance claim management services to Ford. In addition, Ford subsidiaries are our car rental
licensees in Scandinavia and Finland. If Ford were to commence bankruptcy reorganization
proceedings, our business operations and liquidity could be significantly impacted. See ‘‘Item 1A—Risk
Factors—Risks Related to Our Business—We could be harmed by a further decline in the results of
operations or financial condition of the manufacturers of our cars’’ and ‘‘Item 1A—Risk Factors—Risks
Related to our Substantial Indebtedness—Our reliance on asset-backed financing to purchase cars
subjects us to a number of risks, many of which are beyond our control.’’
Available Information
We file annual, quarterly and current reports and other information with the United States Securities and
Exchange Commission, or the ‘‘SEC.’’ You may read and copy any documents that we file at the SEC’s
public reference room at 100 F Street, N.E., Washington, D.C. 20549. Please call the SEC at
1-800-SEC-0330 for further information about the public reference room. In addition, the SEC maintains
an Internet website (www.sec.gov) that contains reports and other information about issuers that file
electronically with the SEC, including Hertz Holdings. You may also access, free of charge, our reports
filed with the SEC (for example, our Annual Report on Form 10-K, our Quarterly Reports on Form 10-Q
and our Current Reports on Form 8-K and any amendments to those forms) indirectly through our
Internet website (www.hertz.com). Reports filed with or furnished to the SEC will be available as soon as
reasonably practicable after they are filed with or furnished to the SEC. The information found on our
website is not part of this or any other report filed with or furnished to the SEC.
ITEM 1A. RISK FACTORS
Our business is subject to a number of important risks and uncertainties, some of which are described
below. The risks described below, however, are not the only risks that we face. Additional risks and
uncertainties not currently known to us or that we currently deem to be immaterial may also impair our
business operations. Any of these risks may have a material adverse effect on our business, financial
condition, results of operations and cash flows.
32