Hertz 2010 Annual Report Download - page 98

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS (Continued)
International, Ltd.’s subsidiaries. As of December 31, 2010 and 2009, our International Fleet Financing
No. 1 B.V., International Fleet Financing No. 2 B.V. and HA Funding Pty, Ltd. variable interest entities had
total assets primarily comprised of loans receivable and revenue earning equipment of $652.1 million
and $819.0 million, respectively, and total liabilities primarily comprised of debt of $651.6 million and
$818.8 million, respectively.
Contractual Obligations
The following table details the contractual cash obligations for debt and related interest payable,
operating leases and concession agreements, liability for uncertain tax positions and related interest
and other purchase obligations as of December 31, 2010 (in millions of dollars):
Payments Due by Period
2012 to 2014 to
Total 2011 2013 2015 After 2015 All Other
Debt(1) ................... $11,429.6 $ 5,067.5 $2,275.1 $2,618.9 $1,468.1 $ —
Interest on debt(2) .......... 2,016.7 480.3 819.0 350.0 367.4 —
Operating leases and
concession agreements(3) . . . 1,997.7 447.4 665.4 359.4 525.5 —
Uncertain tax positions liability
and interest(4) ............ 26.8 — — — — 26.8
Purchase obligations(5) ....... 4,492.7 4,463.9 20.7 5.6 2.5 —
Total .................... $19,963.5 $10,459.1 $3,780.2 $3,333.9 $2,363.5 $26.8
(1) Amounts represent aggregate debt obligations included in ‘‘Debt’’ in our consolidated balance sheet and include $3,277.1 million of
other short-term borrowings. See Note 4 to the Notes to our consolidated financial statements included in this Annual Report under
the caption ‘‘Item 8—Financial Statements and Supplementary Data.’’
Our short-term borrowings as of December 31, 2010 include, among other items, the amounts outstanding under the European
Securitization, Australian Securitization, U.S. Fleet Financing Facility, Brazilian Fleet Financing Facility, Canadian Securitization,
Capitalized Leases and European Revolving Credit Facility. These amounts are reflected as short-term borrowings, regardless of the
facility maturity date, as these facilities are revolving in nature and/or the outstanding borrowings have maturities of three months or
less. Short-term borrowings also include the Convertible Senior Notes which became convertible on January 1, 2011.
In January 2011, Hertz redeemed in full its outstanding ($518.5 million principal amount) 10.5% Senior Subordinated Notes due 2016
which resulted in premiums paid of $27.2 million and the write-off of unamortized debt costs of $8.6 million. In January and February
2011, Hertz redeemed $1,105 million principal amount of its outstanding 8.875% Senior Notes due 2014 which resulted in premiums
paid of $24.5 million and the write-off of unamortized debt costs of $14.4 million. The redeemed 10.5% Senior Subordinated Notes
and portion of the 8.875% Senior Notes have been included in the 2011 maturities in the table above.
(2) Amounts represent the estimated interest payments based on the principal amounts, minimum non-cancelable maturity dates and
applicable interest rates on the debt at December 31, 2010. The minimum non-cancelable obligations under the U.S. Fleet Variable
Funding Notes, Senior ABL Facility, U.S. Fleet Financing Facility, European Revolving Credit Facility, European Securitization,
Canadian Securitization, Australian Securitization and Brazilian Fleet Financing Facility mature between February 2011 and June
2013.
(3) Includes obligations under various concession agreements, which provide for payment of rents and a percentage of revenue with a
guaranteed minimum, and lease agreements for real estate, revenue earning equipment and office and computer equipment. Such
obligations are reflected to the extent of their minimum non-cancelable terms. 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.’’
(4) As of December 31, 2010, represents our liability for uncertain tax positions and related net accrued interest and penalties of
$25.0 million and $1.8 million, respectively. We are unable to reasonably estimate the timing of our uncertain tax positions liability and
interest and penalty payments in individual years beyond twelve months due to uncertainties in the timing of the effective settlement
of tax positions. See Note 8 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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