Hertz 2009 Annual Report Download - page 37

ITEM 1. BUSINESS (Continued)
Worldwide Equipment Rental
Operations
We, through HERC, operate an equipment rental business in the United States, Canada, France, Spain
and China. On the basis of total revenues, we believe HERC is one of the largest equipment rental
companies in the United States and Canada combined. HERC has operated in the United States since
1965.
HERC’s principal business is the rental of equipment. HERC offers a broad range of equipment for
rental; major categories include earthmoving equipment, material handling equipment, aerial and
electrical equipment, air compressors, pumps, generators, small tools, compaction equipment and
construction-related trucks.
Ancillary to its rental business, HERC is also a dealer of certain brands of new equipment in the United
States and Canada, and sells consumables such as gloves and hardhats at many of its rental locations.
HERC’s comprehensive line of equipment enables it to supply equipment to a wide variety of customers
from local contractors to large industrial plants. The fact that many larger companies, particularly those
with industrial plant operations, now require single source vendors, not only for equipment rental, but
also for management of their total equipment needs fits well with HERC’s core competencies.
Arrangements with such companies may include maintenance of the tools and equipment they own,
supplies and rental tools for their labor force and custom management reports. HERC supports this
through its dedicated in-plant operations, tool trailers and plant management systems.
As of December 31, 2007, 2008 and 2009, HERC had branches in the following countries:
Total U.S. Canada France Spain China
January 1, 2007 ............................ 362 242 33 79 8 —
Net increase (decrease) ..................... 14 6 1 5 2 —
Additions relating to acquisitions ............... —— — — — —
December 31, 2007 .......................... 376 248 34 84 10 —
Net increase (decrease) ..................... (34) (27) 2 (4) (6) 1
Additions relating to acquisitions ............... 3 1 ——2 —
December 31, 2008 .......................... 345 222 36 80 6 1
Net increase (decrease) ..................... (24) (8) (1) (14) (3) 2
Additions relating to acquisitions ............... 1 —— — 1 —
December 31, 2009 .......................... 322 214 35 66 4 3
HERC’s rental locations generally are situated in industrial or commercial zones. A growing number of
locations have highway or major thoroughfare visibility. The typical location is approximately three acres
in size, though smaller in Europe, and includes a customer service center, an equipment service area
and storage facilities for equipment. The branches are built or conform to the specifications of the HERC
prototype branch, which stresses efficiency, safety and environmental compliance. Most branches have
stand-alone maintenance and fueling facilities and showrooms.
During the year ended December 31, 2009, we added one location related to an external acquisition
done within our international equipment rental operations. These acquisitions give us greater control
over our growth both in the United States and internationally and an expanded array of services across
the Hertz network. See Note 2 to the Notes to our consolidated financial statements included in this
Annual Report under the caption ‘‘Item 8—Financial Statements and Supplementary Data.’’
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