Thrifty Car Rental 2008 Annual Report Download - page 18

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or operates, or owned or operated in the past, or at properties to which it sends, or has sent, Hazardous
Substances for treatment or disposal. Such remediation requirements generally are imposed without
regard to fault, and liability for any required environmental remediation can be substantial.
Dollar and Thrifty may be eligible for reimbursement or payment of remediation costs associated with
releases from registered underground storage tanks in states that have established funds to assist in the
payment of such remediation costs. Subject to certain deductibles, the availability of funds, the
compliance status of the tanks and the nature of the release, these tank funds may be available to Dollar
and Thrifty for use in remediating releases from their tank systems.
At certain facilities, Dollar and Thrifty are investigating or remediating soil or groundwater contamination.
Based on currently available information, the Company does not believe that the costs associated with
environmental investigation or remediation will be material. However, additional contamination could be
identified or occur in the future.
The use of automobiles and other vehicles is subject to various governmental requirements designed to
limit environmental damage, including that caused by emissions and noise. Generally, these
requirements are met by the manufacturer except, on occasion, equipment failure requiring repair by the
Company.
Environmental legislation and regulations and related administrative policies have changed rapidly in
recent years. There is a risk that governmental environmental requirements, or enforcement thereof, may
become more stringent in the future and that the Company may be subject to additional legal proceedings
at other locations brought by government agencies or private parties for environmental matters. In
addition, with respect to cleanup of contamination, additional locations at which wastes generated by the
Company may have been released or disposed, and of which the Company is currently unaware, may in
the future become the subject of cleanup for which the Company may be liable, in whole or part.
Accordingly, while the Company believes that it is in substantial compliance with applicable requirements
of environmental laws, there can be no assurance that the Company’s future environmental liabilities will
not be material to the Company’s consolidated financial position or results of operations or cash flows.
Employees
As of December 31, 2008, the Company employed a total of approximately 6,800 full-time and part-time
employees. Approximately 200 of the Company’s employees were subject to collective bargaining
agreements as of December 31, 2008. The Company believes its relationship with its employees is good.
ITEM 1A. RISK FACTORS
Expanding upon the factors discussed in the Forward-Looking Statements section provided at the
beginning of this Annual Report on Form 10-K, the following are important factors that could cause actual
results or events to differ materially from those contained in any forward-looking statements that we
made. In addition, not all risks and uncertainties are described below. Risks that we do not know about
could arise and issues we now view as minor could become more important. If we are unable to
adequately respond to any of these risks, our financial condition and results of operations could be
materially adversely affected.
Economic and Financial Market Conditions
Our results are dependent on general economic conditions in the U.S. and Canada, our principal markets,
and on the U.S. automotive industry in particular. The current significant challenges facing the U.S. and
Canadian economies and the highly uncertain global economic outlook have materially adversely affected
consumer confidence and spending levels. We believe that these conditions are likely to persist
throughout 2009. These conditions and severe credit market disruptions, among other factors, have also
materially adversely affected the global automotive industry and the principal automotive manufacturers in
the U.S. in particular, including Chrysler, our principal supplier.
As detailed below and in the risk factors that follow, these conditions have adversely affected our results
and prospects for the foreseeable future and have necessitated significant actions to mitigate the impact
of the current environment. For example, we have reduced our rental fleet requirements in response to
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