Hertz 2015 Annual Report Download - page 24

Table of Contents
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Donlen offers financing solutions for heavier-duty trucks and equipment. Lease financing is provided through syndication arrangements with lending
institutions. Donlen originates the leases, acquires the assets, and services the lease throughout the term.
Donlen provides services to leased and non-leased fleets consisting of fuel purchasing and management, preventive maintenance, repair
consultation, toll management and accident management. Additionally, Donlen manages license and title, vehicle registration, and regulatory
compliance. Donlen’s telematics products provide enhanced visibility and reporting over driver and vehicle performance.
The commercial fleet market is one of the largest segments of the U.S. automotive industry, primarily consisting of vehicles utilized in a sales,
service, or delivery application. The fleet management industry has experienced significant consolidation over the years and today our principal
fleet management competitors in the U.S. and Canada are Enterprise, GE Capital, Automotive Resources International, Element Financial
Corporation, Wheels, Inc. and LeasePlan Corporation N.V.
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As of December 31, 2015, we employed approximately 30,000 persons (approximately 4,000 of which are HERC employees), consisting of
approximately 23,000 persons in our U.S. operations and approximately 7,000 persons in our international operations. International employees are
covered by a wide variety of union contracts and governmental regulations affecting, among other things, compensation, job retention rights and
pensions. Labor contracts covering the terms of employment of approximately 6,200 employees in the U.S. (including those in the U.S. territories)
are presently in effect under approximately 130 active contracts with local unions, affiliated primarily with the International Brotherhood of
Teamsters and the International Association of Machinists. Labor contracts covering approximately 1,100 of these employees will expire during
2016. We have had no material work stoppage as a result of labor problems during the last ten years, and we believe our labor relations to be
good. Nevertheless, we may be unable to negotiate new labor contracts on terms advantageous to us, or without labor interruption.
In addition to the employees referred to above, we employ a substantial number of temporary workers, and engage outside services, as is
customary in the industry, principally for the non-revenue movement of rental cars and equipment between rental locations and the movement of
rental equipment to and from customers' job sites.
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There are three types of generally insurable risks that arise in our operations:
• legal liability arising from the operation of our cars and on-road equipment (vehicle liability);
• legal liability to members of the public and employees from other causes (general liability/workers' compensation); and
• risk of property damage and/or business interruption and/or increased cost of operating as a consequence of property damage.
In addition, we offer optional liability insurance and other products providing insurance coverage, which create additional risk exposures for us. Our
risk of property damage is also increased when we waive the provisions in our rental contracts that hold a renter responsible for damage or loss
under an optional loss or damage waiver that we offer. We bear these and other risks, except to the extent the risks are transferred through
insurance or contractual arrangements.
In many cases we self-insure our risks or insure risks through wholly-owned insurance subsidiaries. We mitigate our exposure to large liability
losses by maintaining excess insurance coverage, subject to deductibles and caps, through unaffiliated carriers. For our international operations
outside of Europe, and for our long-term fleet leasing operations, we maintain some liability insurance coverage with unaffiliated carriers.
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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.