Hertz 2009 Annual Report Download - page 162

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 millions of dollars):
Years ended December 31,
2009 2008 2007
Rents ................................................ $133.2 $144.2 $130.9
Concession fees:
Minimum fixed obligations ................................ 260.1 251.0 301.5
Additional amounts, based on revenues ...................... 231.5 268.8 209.6
Total .............................................. $624.8 $664.0 $642.0
As of December 31, 2009, minimum obligations under existing agreements referred to above are
approximately as follows (in millions of dollars):
Rents Concessions
2010 ..................................................... $126.9 $251.9
2011 ..................................................... 106.7 208.5
2012 ..................................................... 82.1 181.3
2013 ..................................................... 62.2 138.7
2014 ..................................................... 49.4 77.7
Years after 2014 ............................................. 179.1 242.3
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 millions of dollars):
Years ended December 31,
2009 2008 2007
Revenue earning equipment .................................. $68.0 $ 90.8 $76.3
Office and computer equipment ............................... 8.9 10.2 11.3
Total ................................................. $76.9 $101.0 $87.6
As of December 31, 2009, minimum obligations under existing agreements referred to above that have a
maturity of more than one year are as follows (in millions of dollars): 2010, $25.4; 2011, $6.0; 2012, $2.4;
2013, $0.3; 2014, $0.0; years after 2014, $0.0.
Note 9—Segment Information
Our operating segments are aggregated into reportable business segments based primarily upon
similar economic characteristics, products, services, customers, and delivery methods. We have
identified two reportable segments: rental of cars and light trucks, or ‘‘car rental,’’ and rental of industrial,
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