Hertz 2009 Annual Report Download - page 104

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS (Continued)
Our liquidity as of December 31, 2009 was $5.8 billion, which consisted of $1.0 billion of cash and cash
equivalents, $0.9 billion of unused commitments under our Senior ABL Facility and $3.9 billion of unused
commitments under our Fleet Financing Facilities. Taking into consideration the borrowing base
limitations in our Senior ABL Facility and in our Fleet Debt, the amount that we had available for
immediate use as of December 31, 2009 under our Senior ABL Facility was $0.9 billion and we had
$0.4 billion of over-enhancement that was available under our Fleet Debt. Accordingly, as of
December 31, 2009 we had $2.3 billion ($1.0 billion in cash and cash equivalents, $0.9 billion available
under our Senior ABL Facility and $0.4 billion available under our various Fleet Debt facilities) in liquidity
that was available for our immediate use. Future availability of borrowings under these facilities will
depend on borrowing base requirements and other factors, many of which are outside our control. See
‘‘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.’’
Also, substantially all of our revenue earning equipment and certain related assets are owned by special
purpose entities, or are subject to liens in favor of our lenders under our various credit facilities.
Substantially all our other assets in the United States are also subject to liens in favor of our lenders
under our various credit facilities. None of such assets will be available to satisfy the claims of our
general creditors.
Contractual Obligations
The following table details the contractual cash obligations for debt and related interest payable,
operating leases and concession agreements, ASC 740, ‘‘Income Taxes,’’ or ‘‘ASC 740,’’ liability and
interest and other purchase obligations as of December 31, 2009 (in millions of dollars):
Payments Due by Period
2011 to 2013 to
Total 2010 2012 2014 After 2014 All Other
Debt(1) ................... $10,530.4 $4,574.6 $1,908.0 $3,151.4 $ 896.4 $ —
Interest on debt(2) ........... 1,916.0 463.3 730.1 585.4 137.2 —
Operating leases and
concession agreements(3) .... 1,740.8 404.2 587.0 328.2 421.4 —
ASC 740 liability and interest(4) . . 27.9 ————27.9
Purchase obligations(5) ........ 4,503.3 4,464.8 37.2 1.3 ——
Total ..................... $18,718.4 $9,906.9 $3,262.3 $4,066.3 $1,455.0 $27.9
(1) Amounts represent aggregate debt obligations included in ‘‘Debt’’ in our consolidated balance sheet and include $1,598.9 million of
other short-term borrowings. These amounts exclude estimated payments under interest rate swap agreements. See Note 3 to the
Notes to our consolidated financial statements included in this Annual Report under the caption ‘‘Item 8—Financial Statements and
Supplementary Data.’’
Our short-term borrowings as of December 31, 2009 include, among other items, the amounts outstanding under our Senior ABL
Facility, International Fleet Debt facility, International ABS Fleet Financing Facility, Fleet Financing Facility, Brazilian Fleet Financing
Facility, Canadian Fleet Financing Facility, Belgian Fleet Financing Facility and our Capitalized Leases. These amounts are
considered short-term in nature since they have maturity dates of three months or less; however these facilities are revolving in nature
and do not permanently expire at the time of the short-term debt maturity. In addition, we include certain scheduled payments of
principal under our ABS Program as short-term borrowings.
(2) Amounts represent the estimated interest payments based on the principal amounts, minimum non-cancelable maturity dates and
applicable interest rates on the debt at December 31, 2009. The minimum non-cancelable obligations under the U.S. Fleet Debt,
International Fleet Debt, Senior ABL Facility, International ABS Fleet Financing Facility and the Fleet Financing Facility mature
between June 2010 and December 2015.
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