Hertz 2014 Annual Report Download - page 87

Table of Contents
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(a) Amounts represent nominal value of debt obligations. See Note 6, "Debt," to the Notes to our consolidated financial statements included in this
Annual Report under the caption Item 8, "Financial Statements and Supplementary Data.”
(b) Amounts represent the estimated commitment fees and interest payments based on the principal amounts, minimum non-cancelable maturity dates
and applicable interest rates on the debt at December 31, 2014.
(c) Includes obligations under various concession agreements, which provide for payment of rents and a percentage of revenue with a guaranteed
minimum, and lease agreements for real estate, revenue earning equipment and office and computer equipment. Such obligations are reflected to
the extent of their minimum non-cancelable terms. See Note 11, "Lease and Concession Agreements," to the Notes to our consolidated financial
statements included in this Annual Report under the caption Item 8, "Financial Statements and Supplementary Data.”
(d) As of December 31, 2014, this represents fleet purchases where contracts have been signed or are pending with committed orders under the terms
of such arrangements.
(e) Purchase obligations and other represent agreements to purchase goods or services that are legally binding on us and that specify all significant
terms, including fixed or minimum quantities; fixed, minimum or variable price provisions; and the approximate timing of the transaction, as well as
liabilities for uncertain tax positions and other liabilities, and excludes any obligations to employees. Only the minimum non-cancelable portion of
purchase agreements and related cancellation penalties are included as obligations. In the case of contracts that state minimum quantities of goods
or services, amounts reflect only the stipulated minimums; all other contracts reflect estimated amounts. Of the total purchase obligations $15 million
and $3 million, respectively, represent our tax liability for uncertain tax positions and related net accrued interest and penalties.
The table excludes our pension and other postretirement benefit obligations.
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As of December 31, 2014 and 2013, the following guarantees (including indemnification commitments) were issued and outstanding:
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In the ordinary course of business, we execute contracts involving indemnification obligations customary in the relevant industry and
indemnifications specific to a transaction such as the sale of a business. These indemnification obligations might include claims relating to the
following: environmental matters; intellectual property rights; governmental regulations and employment-related matters; customer, supplier and
other commercial contractual relationships; and financial matters. Performance under these indemnification obligations would generally be triggered
by a breach of terms of the contract or by a third party claim. We regularly evaluate the probability of having to incur costs associated with these
indemnification obligations and have accrued for expected losses that are probable and estimable. The types of indemnification obligations for
which payments are possible include the following:
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Hertz has entered into customary indemnification agreements with Hertz Holdings, the Sponsors and our stockholders affiliated with the Sponsors,
pursuant to which Hertz Holdings and Hertz will indemnify the Sponsors, our stockholders affiliated with the Sponsors and their respective
affiliates, directors, officers, partners, members, employees, agents, representatives and controlling persons, against certain liabilities arising out
of performance of a consulting agreement with Hertz Holdings and each of the Sponsors and certain other claims and liabilities, including liabilities
arising out of financing arrangements or securities offerings. We also entered into indemnification agreements with each of our directors and
certain of our officers. We do not believe that these indemnifications are reasonably likely to have a material impact on us.
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We have indemnified various parties for the costs associated with remediating numerous hazardous substance storage, recycling or disposal sites
in many states and, in some instances, for natural resource damages. The amount of any such expenses or related natural resource damages for
which we may be held responsible could be substantial. The probable expenses that we expect to incur for such matters have been accrued, and
those expenses are reflected in our consolidated financial statements. As of December 31, 2014 and 2013, the aggregate amounts accrued for
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Source: HERTZ GLOBAL HOLDINGS INC, 10-K, July 16, 2015 Powered by Morningstar® Document Research℠
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