Hertz 2015 Annual Report Download - page 41

Table of Contents
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
A significant portion of our outstanding debt bears interest at floating rates. As a result, to the extent we have not hedged against rising interest
rates, an increase in the applicable benchmark interest rates would increase our cost of servicing our debt and could materially adversely affect
our liquidity and results of operations.
In addition, we regularly refinance our indebtedness. If interest rates or our borrowing margins increase between the time an existing financing
arrangement was consummated and the time such financing arrangement is refinanced, the cost of servicing our debt would increase and our
liquidity and results of operations could be materially adversely affected.
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
The operations of Hertz Holdings are conducted nearly entirely through its subsidiaries and its ability to generate cash to meet its debt service
obligations or to pay dividends on its common stock is dependent on the earnings and the receipt of funds from its subsidiaries via dividends or
intercompany loans. However, none of the subsidiaries of Hertz Holdings are obligated to make funds available to Hertz Holdings for the payment
of dividends or the service of its debt. In addition, certain states' laws and the terms of certain of our debt agreements significantly restrict, or
prohibit, the ability of Hertz and its subsidiaries to pay dividends, make loans or otherwise transfer assets to Hertz Holdings, including state laws
that require dividends to be paid only from surplus. If Hertz Holdings does not receive cash from its subsidiaries, then Hertz Holdings' financial
condition could be materially adversely affected.

We have a significant number of authorized but unissued shares, including shares available for issuance pursuant to our various equity plans. In
addition, in recent years, several shareholders, most notably affiliates of Carl Icahn, have accumulated significant amounts of Hertz Holdings
common stock. A sale of a substantial number of our shares or other equity-related securities in the public market pursuant to new issuances or
by these significant shareholders could depress the market price of our stock and impair our ability to raise capital through the sale of additional
equity securities. Any such sale or issuance would dilute the ownership interests of the then-existing stockholders, and could have material
adverse effect on the market price of our common stock.
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None.
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We operate car rental locations at or near airports and in central business districts and suburban areas of major cities in the U.S. (including Puerto
Rico and the U.S. Virgin Islands), Australia, Belgium, Brazil, Canada, the Czech Republic, France, Germany, Italy, Luxembourg, the Netherlands,
New Zealand, Slovakia, Spain and the United Kingdom, as well as retail used car sales locations in the U.S., Australia and France. We operate
equipment rental locations in the U.S., Canada, China, Qatar, Saudi Arabia and the United Kingdom. We also operate headquarters, sales offices
and service facilities in the foregoing countries in support of our car rental and equipment rental operations, as well as small car rental sales
offices and service facilities in a select number of other countries in Europe and Asia.
We own approximately 5% of the locations from which we operate our car and equipment rental businesses and in some cases own real property
that we lease to franchisees or other third parties. The remaining locations from which we operate our car and equipment rental businesses are
leased or operated under concessions from governmental authorities and private entities. Those leases and concession agreements typically
require the payment of minimum rents or minimum concession fees and often also require us to pay or reimburse operating expenses; to pay
additional rent, or concession fees above guaranteed minimums, based on a percentage of revenues or sales arising at the relevant premises; or
to do both. See Note 10, "Lease and Concession Agreements," to the Notes to our consolidated
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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.