Hertz 2011 Annual Report Download - page 45

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ITEM 1. BUSINESS (Continued)
remain fixed and cannot be adjusted for seasonal demand. Revenues related to our fleet management
services are generally not seasonal. See ‘‘Item 1A—Risk Factors’’ in this Annual Report. The following
tables set forth this seasonal effect by providing quarterly revenues for each of the quarters in the years
ended December 31, 2011, 2010 and 2009 (in millions of dollars).
$0
1Q 2009 2Q 2009 3Q 2009 4Q 2009
$500
$1,000
$1,500
$3,000
$2,500
$2,000
$1,565
$1,755
$2,041
$1,741
1Q 2010 2Q 2010 3Q 2010 4Q 2010
$1,661
$1,880
$2,186
$1,836
1Q 2011 2Q 2011 3Q 2011 4Q 2011
$1,780
$2,072
$2,432
$2,014
Revenues
Employees
As of December 31, 2011, we employed approximately 23,900 persons, consisting of approximately
16,400 persons in our U.S. operations and 7,500 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 5,850 employees in the United States (including those in the U.S.
territories) are presently in effect under approximately 140 active contracts with local unions, affiliated
primarily with the International Brotherhood of Teamsters and the International Association of
Machinists. Labor contracts covering approximately 1,750 of these employees will expire during 2012.
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.
Risk Management
Three types of generally insurable risks arise in our operations:
• legal liability arising from the operation of our cars and on-road equipment (vehicle liability);
• legal liability to members of the public and employees from other causes (general liability/
workers’ compensation); and
• risk of property damage and/or business interruption and/or increased cost of working as a
consequence of property damage.
In addition, we offer optional liability insurance and other products providing insurance coverage, which
create additional risk exposures for us. Our risk of property damage is also increased when we waive the
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