Hertz 2014 Annual Report Download - page 35

Table of Contents



We maintain a substantial network of car rental locations, including what we believe is the largest number of company-operated airport car rental
locations in the U.S. and at a number of airports internationally. Many of these locations are leased and, in the case of airport car rental locations,
the subject of vehicle rental concessions where vehicle rental companies are frequently required to bid periodically for the available locations. If we
are unable to continue operating these facilities at their current locations due to the termination of leases or vehicle rental concessions, particularly
at airports, which comprise a majority of our revenues, our operating results could be adversely affected.


Our business is heavily dependent upon the favorable brand recognition of our "Hertz, "Dollar" "Thrifty"and "Firefly" brand names have in the
markets in which they participate. Factors affecting brand recognition are often outside our control, and our efforts to maintain or enhance
favorable brand recognition, such as marketing and advertising campaigns, may not have their desired effects. In addition, although our licensing
partners are subject to contractual requirements to protect our brands, it may be difficult to monitor or enforce such requirements, particularly in
foreign jurisdictions. Any decline in perceived favorable recognition of our brands could materially adversely affect our results of operations.


Within the past two years, we have substantially changed our senior management team and have replaced many of the other employees
performing key functions at our corporate headquarters. We have a new Chief Executive Officer who started on November 20, 2014, a new Chief
Financial Officer who started on December 9, 2013 and many other new members of our senior management team. In addition, in connection with
the transition of our corporate headquarters from Park Ridge, New Jersey to Estero, Florida, we have replaced many other employees in other key
functions. As new employees gain experience in their roles, we could experience inefficiencies or a lack of business continuity due to loss of
historical knowledge and a lack of familiarity of new employees with business processes, operating requirements, policies and procedures, some
of which are new, and key information technologies and related infrastructure used in our day-to-day operations and financial reporting and we may
experience additional costs as new employees learn their roles and gain necessary experience. It is important to our success that these key
employees quickly adapt to and excel in their new roles. If they are unable to do so, our business and financial results could be materially
adversely affected. In addition, if we were to lose the services of any one or more key employees, whether due to death, disability or termination of
employment, our ability to successfully implement our business strategy, financial plans, marketing and other objectives, could be significantly
impaired.

Labor contracts covering the terms of employment of approximately 6,000 employees in the U.S. (including those in the U.S. territories) are
presently in effect under approximately 125 active contracts with local unions, affiliated primarily with the International Brotherhood of Teamsters
and the International Association of Machinists. These contracts are renegotiated periodically. Failure to negotiate a new labor agreement when
required could result in a work stoppage. Although we believe that our labor relations have generally been good, it is possible that we could
become subject to additional work rules imposed by agreements with labor unions, or that work stoppages or other labor disturbances could occur
in the future. In addition, our non-union workforce has been subject to unionization efforts in the past, and we could be subject to future
unionization, which could lead to increases in our operating costs and/or constraints on our operating flexibility.
                 

As discussed in the Explanatory Note to this Annual Report and in Note 2, "Restatement" to the Notes to our consolidated financial statements
included in this Annual Report under the caption Item 8, "Financial Statements and Supplementary Data", we are restating our previously issued
financial statements for the years ended December 31, 2013 and 2012
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Source: HERTZ GLOBAL HOLDINGS INC, 10-K, July 16, 2015 Powered by Morningstar® Document Research℠
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