Hertz 2010 Annual Report Download - page 53

ITEM 1A. RISK FACTORS (Continued)
(such as a fire or explosion) or as the result of events or circumstances of broader geographic impact
(such as an earthquake, storm, flood, epidemic, strike, act of war, civil unrest or terrorist act), could
materially adversely affect our business by disrupting normal reservations, customer service,
accounting and information technology functions.
The misuse or theft of information we possess could harm our brand, reputation or competitive
position and give rise to material liabilities.
Because we regularly possess, store and handle non-public information about millions of individuals
and businesses, our failure to maintain the security of that data, whether as the result of our own error or
the malfeasance or errors of others, could harm our reputation, result in governmental investigations and
give rise to a host of civil or criminal liabilities. Any such failure could lead to lower revenues, increased
costs and other material adverse effects on our results of operations.
Maintaining favorable brand recognition is essential to our success, and failure to do so could
materially adversely affect our results of operations.
While our ‘‘Hertz’’ brand name is one of the most recognized in the world, factors affecting brand
recognition are often outside our control, and our efforts to maintain or enhance favorable brand
recognition, such as marketing and advertising campaigns, may not have their desired effects. In
addition, although our licensing partners are subject to contractual requirements to protect our brands, it
may be difficult to monitor or enforce such requirements, particularly in foreign jurisdictions. Any decline
in perceived favorable recognition of our brands could materially adversely affect our results of
operations.
Our business operations could be significantly disrupted if we were to lose the services of
members of our senior management team.
Our senior management team has extensive industry experience, and our success significantly depends
upon the continued contributions of that team. If we were to lose the services of any one or more
members of our senior management team, whether due to death, disability or termination of
employment, our ability to successfully implement our business strategy, financial plans, marketing and
other objectives, could be significantly impaired.
We may pursue strategic transactions which could be difficult to implement, disrupt our business
or change our business profile significantly.
Any future strategic acquisition or disposition of assets or a business could involve numerous risks,
including: (i) potential disruption of our ongoing business and distraction of management; (ii) difficulty
integrating the acquired business or segregating assets to be disposed of; (iii) exposure to unknown,
contingent or other liabilities, including litigation arising in connection with the acquisition or disposition
or against any business we may acquire; (iv) changing our business profile in ways that could have
unintended negative consequences; and (v) the failure to achieve anticipated synergies.
If we enter into significant strategic transactions, the related accounting charges may affect our financial
condition and results of operations, particularly in the case of an acquisition. The financing of any
significant acquisition may result in changes in our capital structure, including the incurrence of
additional indebtedness. A material disposition could require the amendment or refinancing of our
outstanding indebtedness or a portion thereof.
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