Hertz 2014 Annual Report Download - page 39

Table of Contents


                   

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 Item 1,
‘‘Business—Governmental Regulation and Environmental Matters’’ in this Annual Report.
The U.S. Congress and other legislative and regulatory authorities in the U.S. 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.
                  
             


We are subject to a wide variety of U.S. laws and regulations and changes in the level of government regulation of our business have the potential
to materially alter our business practices and materially adversely affect our financial position and results of operations, including our profitability.
Those changes may come about through new laws and regulations or changes in the interpretation of existing laws and regulations.
Any new, or change in existing, U.S. law and regulation with respect to optional insurance products or policies could increase our costs of
compliance or make it uneconomical to offer such products, which would lead to a reduction in revenue and profitability. For further discussion
regarding how changes in the regulation of insurance intermediaries may affect us, see Item 1, ‘‘Business—Risk Management’’ in this Annual
Report. If customers decline to purchase supplemental liability insurance products from us as a result of any changes in these laws or otherwise,
our results of operations could be materially adversely affected.
Changes in the U.S. legal and regulatory environment in the areas of customer privacy, data security and cross-border data flow could have a
material adverse effect on our business, primarily through the impairment of our marketing and transaction processing activities, and the resulting
costs of complying with such legal and regulatory requirements. It is also possible that we could face significant liability for failing to comply with
any such requirements.
We derive revenue through rental activities of the Hertz, Dollar, Thrifty and Firefly brands under franchise and license arrangements. These
arrangements are subject to a number of federal and state laws and regulations that impose limitations on our interactions with counter-parties. In
addition, the automotive retail industry, including our network of company-operated car sales locations, is subject to a wide range of federal, state
and local laws and regulations, such as those relating to motor vehicle sales, retail installment sales and related finance and insurance matters,
advertising, licensing, consumer protection and consumer privacy. Changes in these laws and regulations that impact our franchising and licensing
arrangements or our automotive retail sales could adversely impact our results.
In most places where we operate, we pass through various expenses, including the recovery of vehicle licensing costs and airport concession
fees, to our rental customers as separate charges. We believe that our expense pass throughs, where imposed, are properly disclosed and are
lawful. However, we may in the future be subject to potential legislative, regulatory or administrative changes or actions which could limit, restrict
or prohibit our ability to separately state, charge and recover vehicle licensing costs and airport concession fees, which could result in a material
adverse effect on our results of operations.
28
Source: HERTZ GLOBAL HOLDINGS INC, 10-K, July 16, 2015 Powered by Morningstar® Document Research℠
The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,
except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.