Thrifty Car Rental 2010 Annual Report Download - page 5

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x the cost of regulatory compliance, costs and other effects of potential future initiatives,
including those directed at climate change and its effects, and the costs and outcome of
pending litigation;
x disruptions in the operation or development of information and communication systems that
we rely on, including those relating to methods of payment;
x local market conditions where we and our franchisees do business, including whether
franchisees will continue to have access to capital as needed;
x the effectiveness of actions we take to manage costs and liquidity; and
x the impact of other events that can disrupt consumer travel, such as natural and man-made
catastrophes, pandemics and actual and perceived threats or acts of terrorism.
We are also subject to risks relating to a potential business combination transaction, including
the following:
x whether Avis Budget Group, Inc. (“Avis Budget”) would obtain regulatory approval to
engage in a business combination transaction with us and, if so, the conditions upon which
such approval would be granted (including potential divestitures of assets or businesses of
either company), whether we and Avis Budget would reach agreement on the terms of such
a transaction, whether our stockholders would approve the transaction and whether other
conditions to consummation of the transaction would be satisfied or waived;
x the impact on our results and liquidity if we become obligated to pay a termination fee to
Hertz Global Holdings, Inc. (“Hertz”) upon our entry into a definitive agreement for, or our
completion or recommendation of, a qualifying business combination transaction within 12
months of the October 1, 2010 termination date of our merger agreement with Hertz, and
whether and the extent to which the relevant third party would bear all or any portion of that
fee;
x the risks to our business and prospects pending any future business combination
transaction, diversion of management’s attention from day-to-day operations, a loss of key
personnel, disruption of our operations, and the impact of pending or future litigation relating
to any business combination transaction; and
x the risks to our business and growth prospects as a stand-alone company, in light of our
dependence on future growth of the economy as a whole to achieve meaningful revenue
growth in the key airport and local markets we serve, high barriers to entry in the insurance
replacement market, and capital and other constraints on expanding company-owned
stores internationally.
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