Hertz 2009 Annual Report Download - page 112

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS (Continued)
to the Prior Plans will continue to be subject to and governed by the terms of the Prior Plans. As of
December 31, 2009, there were 13.0 million shares of our common stock underlying awards outstanding
under the Prior Plans. In addition, as of December 31, 2009, there were 8.1 million shares of our common
stock underlying awards outstanding under the Omnibus Plan.
In addition to the 21.1 million shares underlying outstanding awards as of December 31, 2009, we had
8.9 million shares of our common stock available for issuance under the Omnibus Plan. The shares of
common stock to be delivered under the Omnibus Plan may consist, in whole or in part, of common
stock held in treasury or authorized but unissued shares of common stock, not reserved for any other
purpose.
In February 2009, we granted options to acquire 52,500 shares of our common stock at an exercise price
of $3.24 per share under the Omnibus Plan.
In 2009, we granted 6,465,239 Restricted Stock Units, or ‘‘RSUs,’’ to key executives and employees and
Performance Stock Units, or ‘‘PSUs.’’
For the year ended December 31, 2009, we recognized compensation cost of approximately
$34.5 million ($21.1 million, net of tax) for options, RSUs and PSUs granted pursuant to our Prior Plans
and the Omnibus Plan.
On February 28, 2008, upon recommendation of the compensation committee of our Board of Directors,
our Board of Directors adopted the Hertz Global Holdings, Inc. Employee Stock Purchase Plan, or the
‘‘ESPP,’’ and the plan was approved by our stockholders on May 15, 2008. The ESPP is intended to be
an ‘‘employee stock purchase plan’’ within the meaning of Section 423 of the Internal Revenue Code.
The maximum number of shares that may be purchased under the ESPP is 3,000,000 shares of our
common stock, subject to adjustment in the case of any change in our shares, including by reason of a
stock dividend, stock split, share combination, recapitalization, reorganization, merger, consolidation or
change in corporate structure.
For the year ended December 31, 2009, we recognized compensation cost of approximately $0.5 million
($0.3 million, net of tax) for the amount of the discount on the stock purchased by our employees.
Approximately 1,800 employees participated in the ESPP as of December 31, 2009.
See Note 5 of the Notes to our consolidated financial statements included in this Annual Report under
the caption ‘‘Item 8—Financial Statements and Supplementary Data.’’
Recent Accounting Pronouncements
For a discussion of recent accounting pronouncements, see Note 1 to the Notes to our consolidated
financial statements included in this Annual Report under the caption ‘‘Item 8—Financial Statements and
Supplementary Data.’’
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
See ‘‘Item 7—Management’s Discussion and Analysis of Financial Condition and Results of
Operations—Market Risks’’ included elsewhere in this Annual Report.
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