Hertz 2010 Annual Report Download - page 60

ITEM 1A. RISK FACTORS (Continued)
plans. A sale of a substantial number of our shares or other equity-related securities in the public market
pursuant to new issuances (by us or upon the conversion of our Convertible Senior Notes (as defined
below)) or by significant stockholders (such as by our Sponsors) could depress the market price of our
stock and impair our ability to raise capital through the sale of additional equity securities. Any such sale
or issuance would dilute the ownership interests of the then-existing stockholders, and could have
material adverse effect on the market price of our common stock or the value of the Convertible Senior
Notes. The price of our common stock could be materially adversely affected by possible sales of our
common stock by investors who view the Convertible Senior Notes as a more attractive means of equity
participation in our company and by hedging or arbitrage trading activity. In addition, the price of our
common stock could be materially adversely affected if the existence of the Convertible Senior Notes
encourages short selling by market participants.
ITEM 1B. UNRESOLVED STAFF COMMENTS
None.
ITEM 2. PROPERTIES
We operate car rental locations at or near airports and in central business districts and suburban areas of
major cities in the United States, including Puerto Rico and the U.S. Virgin Islands, Canada, France,
Germany, Italy, the United Kingdom, Spain, The Netherlands, Switzerland, Belgium, Luxembourg, the
Czech Republic, the Slovak Republic, Australia, New Zealand, China and Brazil, as well as retail used car
sales locations in the United States, France and Australia. We operate equipment rental locations in the
United States, Canada, France, Spain, Italy and China. We also operate headquarters, sales offices and
service facilities in the foregoing countries in support of our car rental and equipment rental operations,
as well as small car rental sales offices and service facilities in a select number of other countries in
Europe and Asia.
We own approximately 7% of the locations from which we operate our car and equipment rental
businesses. The remaining locations are leased or operated under concessions from governmental
authorities and private entities. Those leases and concession agreements typically require the payment
of minimum rents or minimum concession fees and often also require us to pay or reimburse operating
expenses; to pay additional rent, or concession fees above guaranteed minimums, based on a
percentage of revenues or sales arising at the relevant premises; or to do both. See Note 9 to the Notes
to our consolidated financial statements included in this Annual Report under the caption ‘‘Item 8—
Financial Statements and Supplementary Data.’’
In addition to the above operational locations, we own three major facilities in the vicinity of Oklahoma
City, Oklahoma at which reservations for our car rental operations are processed, global information
technology systems are serviced and major domestic and international accounting functions are
performed. We also have a long-term lease for a reservation and financial center near Dublin, Ireland, at
which we have centralized our European car rental reservation and customer relations and accounting
functions. We lease a European regional office in Geneva, Switzerland which we constructed and
occupied during 2010. We maintain our executive offices in an owned facility in Park Ridge, New Jersey
and lease a European headquarters office in Uxbridge, England.
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