Hertz 2011 Annual Report Download - page 64

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, customer relations, accounting and
human resource functions. We lease a European regional office in Geneva, Switzerland which we
constructed in 2010. We maintain our executive offices in an owned facility in Park Ridge, New Jersey
and lease a European headquarters office in Uxbridge, England. Donlen’s headquarters is in
Northbrook, Illinois. Donlen also leases office space in Darien, Illinois for a portion of its fleet
management services consultation call center staff and has other sales offices located throughout the
United States.
ITEM 3. LEGAL PROCEEDINGS
From time to time we are a party to various legal proceedings. Other than with respect to the aggregate
claims for public liability and property damage pending against us, management does not believe that
any of the matters resolved, or pending against us, during 2011 are material to us and our subsidiaries
taken as a whole. While we have accrued a liability with respect to claims for public liability and property
damage of $281.5 million at December 31, 2011, management, based on the advice of legal counsel,
does not believe any of the other pending matters described below are material. We have summarized
below, for purposes of providing background, various legal proceedings to which we were and/or are a
party during 2011 or the period after December 31, 2011 but before the filing of this Annual Report. In
addition to the following, various other legal actions, claims and governmental inquiries and
proceedings are pending or may be instituted or asserted in the future against us and our subsidiaries. In
particular, on June 15, 2011 we received a subpoena from the Staff of the Securities and Exchange
Commission, or ‘‘SEC,’’ seeking production of documents related to our proposed business
combination with Dollar Thrifty. We intend to cooperate fully with the SEC’s investigation.
38