Global Operations - As of December 31, 2023, Hertz operated approximately 11,400 rental locations globally across about 160 countries, making it one of the largest vehicle rental companies worldwide[37]. - The Americas RAC segment includes substantial company-operated rental locations primarily in the U.S. and Canada, while the International RAC segment has a majority of locations in Europe[41]. - As of December 31, 2023, Hertz had approximately 1,900 airport rental locations in the Americas RAC segment and approximately 1,500 in the International RAC segment[49]. - The company maintains a substantial network of franchisee locations, with 72% of franchised locations in markets covered by the International RAC segment as of December 31, 2023[41]. Revenue and Financial Performance - Off airport rental revenues comprised 34% of total worldwide vehicle rental revenues in 2023, up from 32% in 2022[47]. - Hertz Gold Plus Rewards members accounted for approximately 33% of worldwide rental transactions for the year ended December 31, 2023[80]. - Franchisee fees comprised approximately 2% of the company's worldwide vehicle rental revenues for the year ended December 31, 2023[96]. - The U.S. vehicle rental industry generated approximately 38.4billioninestimatedannualrevenuesfor2023,withanaverageof2millionvehiclesinoperation[117].−Thecompanyoperatedapeakrentalfleetofapproximately467,000vehiclesintheAmericasRACsegmentand124,600vehiclesintheInternationalRACsegmentasofDecember31,2023[101].FleetManagementandVehicleStrategy−TheaverageholdingperiodforrentalvehiclessoldintheAmericasRACsegmentwas20months,down20245 million incremental net depreciation expense recognized in Q4 2023[208]. - The company faces risks related to the economics of EVs, including depreciation rates, residual values, and financing costs, which could impact the attractiveness of EVs to customers[205]. - The company is exposed to volatility in new EV pricing, which can affect the residual values of EVs in its fleet, and the timeline for building out necessary charging infrastructure[206]. Employee and Labor Relations - The company employs approximately 27,000 persons, with around 21,000 in the U.S. and 6,000 internationally as of December 31, 2023[122]. - The company offers a comprehensive benefits package for employees, including retirement savings plans and health insurance[132]. - The company anticipates renegotiating labor contracts with approximately 45% of its union-represented employees in 2024, which could lead to work stoppages if agreements are not reached[223]. - The company’s ability to attract and retain qualified employees is critical, with competition for talent particularly intense in technology roles essential for strategic initiatives[222]. Cybersecurity and IT Risks - The company has invested in cybersecurity measures to protect its information technology systems, but remains at risk of cyber attacks that could disrupt operations[226]. - The company recognizes that maintaining favorable brand recognition is essential for success, and any decline in brand perception could adversely affect its financial results[220]. - A cyber attack or failure to maintain IT infrastructure could lead to significant harm, including operational disruptions and potential litigation costs[228]. - Customer information, including loyalty account logins, is at risk of being targeted by cyber criminals, which could compromise accounts across multiple merchants[229]. - The company maintains a cyber insurance policy, but there is no assurance that it will cover all costs related to cybersecurity incidents[230]. - The business relies heavily on IT systems managed by third parties, and any significant disruptions could adversely affect operations and financial performance[231]. - Failure to maintain and upgrade IT systems may hinder business growth and lead to increased operational costs and cybersecurity risks[233]. - Misuse or theft of information could damage the company's brand and result in liabilities that negatively impact financial performance[234]. - The company faces risks related to data protection and privacy laws, particularly in the EU and California, which require secure handling of personal information[235].
Hertz(HTZ)2024-02-11 16:00