Hertz 2009 Annual Report Download - page 40

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ITEM 1. BUSINESS (Continued)
expenses, including minimum concession fees, real estate taxes, rent, insurance, utilities, maintenance
and other facility-related expenses, the costs of operating our information technology systems and
minimum staffing costs, remain fixed and cannot be adjusted for seasonal demand. See ‘‘Item 1A—Risk
Factors—Risks Related to Our Business—Our business is highly seasonal and any occurrence that
disrupts rental activity during our peak periods could constrain our liquidity and adversely affect our
results of operations.’’ The following tables set forth this seasonal effect by providing quarterly revenues
and income (loss) before income taxes for each of the quarters in the year ended December 31, 2009.
0
500
1,000
1,500
2,000
In Millions of Dollars
1Q 2009 2Q 2009 3Q 2009 4Q 2009
$1,565
$1,755
$2,041
$1,741
0
(500)
500
$(210) $31 $76 $(67)
1Q 2009 2Q 2009 3Q 2009 4Q 2009
In Millions of Dollars
Revenues
Income (Loss) before Income Taxes
Employees
As of December 31, 2009, we employed approximately 23,050 persons, consisting of 15,680 persons in
our U.S. operations and 7,370 persons in our international operations. International employees are
covered by a wide variety of union contracts and governmental regulations affecting, among other
things, compensation, job retention rights and pensions. Labor contracts covering the terms of
employment of approximately 5,900 employees in the United States (including those in the U.S.
territories) are presently in effect under 140 active contracts with local unions, affiliated primarily with the
International Brotherhood of Teamsters and the International Association of Machinists. Labor contracts
covering approximately 2,170 of these employees will expire during 2010. We have had no material work
stoppage as a result of labor problems during the last ten years, and we believe our labor relations to be
good. Nonetheless, we may be unable to negotiate new labor contracts on terms advantageous to us, or
without labor interruptions.
In addition to the employees referred to above, we employ a substantial number of temporary workers,
and engage outside services, as is customary in the industry, principally for the non-revenue movement
of rental cars and equipment between rental locations and the movement of rental equipment to and
from customers’ job sites.
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