Hertz 2008 Annual Report Download - page 172

HERTZ GLOBAL HOLDINGS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Pension Benefits Postretirement
U.S. Non-U.S. Benefits (U.S.)
2008 2007 2008 2007 2008 2007
Amounts recognized in balance sheet:
Liabilities ............................ $(201.8) $(121.5) $ (60.2) $ (37.1) $(12.9) $(13.2)
Net obligation recognized in the balance sheet . $(201.8) $(121.5) $ (60.2) $ (37.1) $(12.9) $(13.2)
Prior service cost ...................... $ (0.1) $ (0.1) $ — $ — $ — $ —
Net gain (loss) ........................ (75.7) (1.3) (6.5) 29.5 4.6 7.2
Accumulated other comprehensive income (loss) . (75.8) (1.4) (6.5) 29.5 4.6 7.2
Unfunded accrued pension or postretirement
benefit ............................ (126.0) (120.1) (53.7) (66.6) (17.5) (20.4)
Net obligation recognized in the balance sheet . $(201.8) $(121.5) $ (60.2) $ (37.1) $(12.9) $(13.2)
Total recognized in other comprehensive
income (loss) ....................... $ (74.4) $ (14.3) $ (36.0) $ 34.7 $ 2.6 $ 3.6
Total recognized in net periodic benefit cost
and other comprehensive loss (income) . . . $ 107.6 $ 46.5 $ 41.7 $ (24.8) $ 0.5 $ (2.9)
Estimated amounts that will be amortized from
accumulated other comprehensive (income)
loss over the next fiscal year:
Net gain (loss) ........................ $ (0.4) $ (0.6) $ 0.3 $ 0.7 $ 0.4 $ 0.6
Accumulated Benefit Obligation at December 31 . $ 382.8 $ 377.2 $151.6 $168.1 N/A N/A
Weighted-average assumptions as of
December 31
Discount rate ......................... 6.39% 6.30% 5.59% 5.51% 6.20% 6.30%
Expected return on assets ................ 8.25% 8.50% 6.79% 7.22% N/A N/A
Average rate of increase in compensation ..... 4.3% 4.3% 3.9% 4.0% N/A N/A
Initial health care cost trend rate ............ — — — — 9.0% 9.5%
Ultimate health care cost trend rate .......... — — — — 5.0% 5.0%
Number of years to ultimate trend rate ....... — — — — 10 8
The discount rate used to determine the December 31, 2008 benefit obligations for U.S. pension plans is
based on the rate from the Citigroup Pension Discount Curve that is appropriate for the duration of our
plan liabilities. For our plans outside the U.S., the discount rate reflects the market rates for high-quality
corporate bonds currently available. The discount rate in a country was determined based on a yield
curve constructed from high quality corporate bonds in that country. The rate selected from the yield
curve has a duration that matches our plan.
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