Hertz 2008 Annual Report Download - page 170

HERTZ GLOBAL HOLDINGS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Our liquidity as of December 31, 2008 was $4.8 billion, which consisted of $0.6 billion of cash, $1.3 billion
of unused commitments under our Senior ABL Facility and $2.9 billion of unused commitments under
our Fleet Financing Facilities. Taking into consideration the borrowing base limitations in our Senior ABL
Facility and in our Fleet Debt, the amount that we had available for immediate use as of December 31,
2008 under our Senior ABL Facility was $1.3 billion and we had $0.2 billion of over-enhancement that
was available under our Fleet Debt. Accordingly, as of December 31, 2008 we had $2.1 billion
($0.6 billion in cash, $1.3 billion available under our Senior ABL Facility and $0.2 billion available under
our various Fleet Debt facilities) in liquidity that was available for our immediate use. Future availability of
borrowings under these facilities will depend on borrowing base requirements and other factors, many
of which are outside our control. See ‘‘Item 1A—Risk Factors—Risks Related to our Substantial
Indebtedness—Our reliance on asset-backed financing to purchase cars subjects us to a number of
risks, many of which are beyond our control.’’
As of December 31, 2008, substantially all of our assets were pledged under one or more of the facilities
noted above. As of December 31, 2008 and 2007, accrued interest was $131.4 million and
$138.3 million, respectively, which is reflected in our consolidated balance sheet in ‘‘Other accrued
liabilities.’’
Note 4—Employee Retirement Benefits
Qualified U.S. employees, after completion of specified periods of service, are eligible to participate in
The Hertz Corporation Account Balance Defined Benefit Pension Plan, or the ‘‘Hertz Retirement Plan,’’ a
cash balance plan. Under this qualified Hertz Retirement Plan, we pay the entire cost and employees are
not required to contribute.
Most of our international subsidiaries have defined benefit retirement plans or participate in various
insured or multiemployer plans. In certain countries, when the subsidiaries make the required funding
payments, they have no further obligations under such plans. We participate in various multiemployer
pension plans administered by labor unions representing some of our employees. We make periodic
contributions to these plans to allow them to meet their pension benefit obligations to their participants.
Contributions to U.S. multiemployer plans were $7.3 million, $7.5 million and $7.7 million for years ended
December 31, 2008, 2007 and 2006, respectively.
Company plans are generally funded, except for certain nonqualified U.S. defined benefit plans and in
Germany, where unfunded liabilities are recorded.
We sponsor defined contribution plans for certain eligible U.S. and non-U.S. employees. We match
contributions of participating employees on the basis specified in the plans.
We also sponsor postretirement health care and life insurance benefits for a limited number of
employees with hire dates prior to January 1, 1990. The postretirement health care plan is contributory
with participants’ contributions adjusted annually. An unfunded liability is recorded. We also have a key
officer postretirement car benefit plan that provides the use of a vehicle for retired Senior Vice Presidents
and above who have a minimum of 20 years of service and who retired at age 58 or above.
We use a December 31 measurement date for all our plans.
The following tables set forth the funded status and the net periodic pension cost of the Hertz Retirement
Plan, other postretirement benefit plans (including health care and life insurance plans covering
domestic (‘‘U.S.’’) employees and the retirement plans for international operations (‘‘Non-U.S.’’),
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