Hertz 2011 Annual Report Download - page 99

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ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS (Continued)
Years Ended December 31,
2011 2010 2009
Revenue earning equipment expenditures:
Car rental ........................................ $8,865.6 $8,274.1 $7,442.3
Equipment rental ................................... 588.7 166.8 85.0
Total .......................................... $9,454.3 $8,440.9 $7,527.3
Revenue earning equipment expenditures in our car rental and equipment rental operations for the year
ended December 31, 2011 increased by 7.1% and 253.0%, respectively, compared to the year ended
December 31, 2010. The increase in our car rental revenue earning equipment expenditures was
primarily due to higher rental volumes during the year ended December 31, 2011 as compared to the
year ended December 31, 2010, which required us to increase fleet levels. The increase in our
equipment rental operations revenue earning equipment expenditures is primarily due to a continued
improvement in the economic conditions as well as efforts to reduce the age of our fleet during the year
ended December 31, 2011.
Revenue earning equipment expenditures in our car rental and equipment rental operations for the year
ended December 31, 2010 increased by 11.2% and 96.1%, respectively, compared to the year ended
December 31, 2009. The increase in our car rental revenue earning equipment expenditures was
primarily due to higher rental volumes during the year ended December 31, 2010 as compared to the
year ended December 31, 2009, which required us to increase fleet levels. The increase in our
equipment rental operations revenue earning equipment expenditures is primarily due to an
improvement in the economic conditions during the second half of the year ended December 31, 2010.
Years Ended December 31,
2011 2010 2009
Property and equipment expenditures:
Car rental ............................................ $244.3 $156.0 $ 90.8
Equipment rental ....................................... 28.8 19.3 9.4
Other ............................................... 8.6 3.9 0.5
Total .............................................. $281.7 $179.2 $100.7
Property and equipment expenditures in our car rental operations, equipment rental operations and for
all other activities for the year ended December 31, 2011 increased by $88.3 million, $9.5 million and
$4.7 million, respectively, compared to the year ended December 31, 2010. The car rental and
equipment rental increases are a result of increased volumes, an improvement in the economic
conditions during the year, as well as, in car rental due to the opening of new off-airport locations.
Property and equipment expenditures in our car rental operations, equipment rental operations and for
all other activities for the year ended December 31, 2010 increased by $65.2 million, $9.9 million and
$3.4 million, respectively, compared to the year ended December 31, 2009. The car rental increase is a
result of increased car rental volumes, an improvement in the economic conditions during the year, as
well as, the opening of new off-airport locations.
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