Hertz 2012 Annual Report Download - page 66

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, Belgium, Luxembourg, the Czech
Republic, Slovakia, 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 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 6% of the locations from which we operate our car and equipment rental
businesses and in some cases own real property that we lease to franchisees or other third-parties. The
remaining locations from which we operate our car and equipment rental businesses 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 10 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 maintain our executive offices in an owned facility in Park Ridge, New
Jersey and lease a European headquarters office in Uxbridge, England. Dollar Thrifty has headquarters
in Tulsa, Oklahoma. Donlen’s headquarters is in Northbrook, Illinois. Donlen also leases office space in
Darien, Illinois and Buffalo Grove, Illinois, for all of its fleet management services, consultation call center
staff and certain financial systems functions. Donlen 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 2012 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 $332.2 million at December 31, 2012, 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 2012 or the period after December 31, 2012 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.
As previously disclosed, 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
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