Hertz 2008 Annual Report Download - page 63

ITEM 1A. RISK FACTORS (Continued)
multiemployer plans, including one in which we participate, are reported to have significant underfunded
liabilities. Such underfunding could increase the size of our potential withdrawal liability.
We have received an informal request from the SEC to provide information about car rental
services that we provide to our independent registered public accounting firm in the ordinary
course of business.
In July 2005, the Division of Enforcement of the SEC informed us that it was conducting an informal
inquiry and asked Hertz to voluntarily provide documents and information related to car rental services
that we provide to our independent registered public accounting firm, PricewaterhouseCoopers LLP, or
‘‘PwC.’’ The SEC noted in its letter that the inquiry should not be construed as an indication by the SEC
or its staff that any violations of law have occurred, or as a reflection upon any person, entity or security.
We cooperated with the SEC by providing it with certain requested information in July and September
2005. Since then, we have received no further requests from the SEC with respect to this informal inquiry,
but neither have we been advised that it has been closed.
After learning of this informal inquiry, our audit committee and representatives of PwC discussed PwC’s
independence with respect to us. PwC reconfirmed that it has been and remains independent with
respect to us. In making this determination, PwC considered, among other things, its belief that PwC’s
arrangements with us represent arm’s-length transactions that were negotiated in the normal course of
business, and, therefore, that the commercial relationship does not impair PwC’s independence with
respect to us. If the SEC were to take a different view and it were ultimately determined that PwC was not
independent with respect to us for certain periods, our filings with the SEC which contain our
consolidated financial statements for such periods would be non-compliant with applicable securities
laws. A determination that PwC was not independent with respect to us could, among other things,
cause us to be in violation of, or in default under, the instruments governing our indebtedness and airport
concession agreements, limit our access to capital markets and result in regulatory sanctions. Also, in
the event of such a determination, we may be required to have independent audits conducted on our
previously audited financial statements by another independent registered public accounting firm for the
affected periods. The time involved to conduct such independent audits may make it more difficult to
obtain capital on favorable terms, or at all, pending the completion of such audits. Any of the foregoing
could have a material adverse effect on our results of operations, liquidity and financial condition, the
trading prices of our securities and the continued eligibility for listing of our common stock on The New
York Stock Exchange, or ‘‘NYSE.’’
Environmental laws and regulations and the costs of complying with them, or any liability or
obligation imposed under them, could adversely affect our financial position, results of operations
or cash flows.
We are regulated by federal, state, local and foreign environmental laws and regulations in connection
with our operations, including, among other things, 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 have
established a compliance program for our tanks that is intended to ensure that the tanks are properly
registered with the state or other jurisdiction in which the tanks are located and have been either
replaced or upgraded to meet applicable leak detection and spill, overfill and corrosion protection
requirements. However, we cannot assure you that these tank systems will at all times remain free from
undetected leaks or that the use of these tanks will not result in significant spills.
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