Hertz 2011 Annual Report Download - page 104

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS (Continued)
to borrowing bases comprised of rental vehicles and related assets of certain of Hertz
International, Ltd.’s subsidiaries. As of December 31, 2011 and 2010, 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 $456.3 million
and $652.1 million, respectively, and total liabilities primarily comprised of debt of $455.8 million and
$651.6 million, respectively.
Contractual Obligations
The following table details the contractual cash obligations for debt and related interest payable,
operating leases and concession agreements, tax liability for uncertain tax positions and related interest
and other purchase obligations as of December 31, 2011 (in millions of dollars):
Payments Due by Period
Total 2012 2013 to 2014 2015 to 2016 After 2016 All Other
Debt(1) ................ $11,400.3 $ 4,363.5 $1,635.7 $1,623.6 $3,777.5 $ —
Interest on debt(2) ........ 2,348.9 536.3 810.3 506.2 496.1 —
Operating leases and
concession agreements(3) . 1,916.4 468.6 623.5 285.6 538.7 —
Uncertain tax positions
liability and interest(4) .... 23.6 — — — — 23.6
Purchase obligations(5) ..... 6,376.0 6,331.0 37.0 5.5 2.5 —
Total .................. $22,065.2 $11,699.4 $3,106.5 $2,420.9 $4,814.8 $23.6
(1) Amounts represent aggregate debt obligations included in ‘‘Debt’’ in our consolidated balance sheet and include
$3,691.0 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, 2011 include, among other items, the amounts outstanding under the
European Securitization, Australian Securitization, U.S. Fleet Financing Facility, U.S. Variable Funding Notes, Brazilian Fleet
Financing, Canadian Securitization, Capitalized Leases, European Revolving Credit Facility and Donlen GN II Variable
Funding Notes. 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 again on January 1, 2012.
(2) Amounts represent the estimated commitment fees and interest payments based on the principal amounts, minimum
non-cancelable maturity dates and applicable interest rates on the debt at December 31, 2011. 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 mature between January 2012 and September 2015.
(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, 2011, this represents our tax liability for uncertain tax positions and related net accrued interest and
penalties of $19.9 million and $3.7 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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