Hertz 2012 Annual Report Download - page 58

ITEM 1A. RISK FACTORS (Continued)
uninsured claims or that insurance with unaffiliated carriers will continue to be available to us on
economically reasonable terms or at all. See the sections entitled ‘‘Business—Risk Management’’ and
‘‘Legal Proceedings’’ in this Annual Report.
We could face a significant withdrawal liability if we withdraw from participation in one or more
multiemployer pension plans in which we participate and at least one multiemployer plan in which
we participate is reported to have underfunded liabilities.
We participate in various multiemployer pension plans. In the event that we withdraw from participation
in one of these plans, then applicable law could require us to make an additional contribution to the plan,
and we would have to reflect that as an expense in our consolidated statements of operations and as a
liability on our consolidated balance sheet. The amount that we would be required to pay to the plan is
referred to as a withdrawal liability. Our withdrawal liability for any multiemployer plan would depend on
the extent of the plan’s funding of vested benefits. One multiemployer plan in which we participated had
significant underfunded liabilities and we withdrew from that plan in December 2012. Several of our
remaining multiemployer plans have underfunded liabilities. Such underfunding may increase in the
event other employers become insolvent or withdraw from the applicable plan or upon the inability or
failure of withdrawing employers to pay their withdrawal liability. In addition, such underfunding may
increase as a result of lower than expected returns on pension fund assets or other funding deficiencies.
The occurrence of any of these events could have a material adverse effect on our consolidated financial
position, results of operations or cash flows. See Note 6 to the consolidated financial statements
included in this Annual Report.
Environmental laws and regulations and the costs of complying with them, or any liability or
obligation imposed under them, could materially adversely affect our financial position, results of
operations or cash flows.
We are subject to federal, state, local and foreign environmental laws and regulations in connection with
our operations, including with respect to the ownership and operation of tanks for the storage of
petroleum products, such as gasoline, diesel fuel and motor and waste oils. We cannot assure you that
our tanks will at all times remain free from leaks or that the use of these tanks will not result in significant
spills or leakage. If leakage or a spill occurs, it is possible that the resulting costs of cleanup,
investigation and remediation, as well as any resulting fines, could be significant. We cannot assure you
that compliance with existing or future environmental laws and regulations will not require material
expenditures by us or otherwise have a material adverse effect on our consolidated financial position,
results of operations or cash flows. See the section entitled ‘‘Business—Governmental Regulation and
Environmental Matters’’ in this Annual Report.
The U.S. Congress and other legislative and regulatory authorities in the United States and
internationally have considered, and will likely continue to consider, numerous measures related to
climate change and greenhouse gas emissions. Should rules establishing limitations on greenhouse
gas emissions or rules imposing fees on entities deemed to be responsible for greenhouse gas
emissions become effective, demand for our services could be affected, our fleet and/or other costs
could increase, and our business could be adversely affected.
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