Hertz 2010 Annual Report Download - page 103

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS (Continued)
participate, improved as of December 31, 2010, compared with December 31, 2009 because asset
values increased due to gains in the securities markets. We contributed $54.2 million to our U.S. pension
plan during 2010 and expect to contribute between $45 million and $90 million to our U.S. pension plan
during 2011. These contributions are necessary primarily because of the plans under funded status.
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. In the event that we withdraw from participation in one of
these plans, then applicable law could require us to make an additional lump-sum contribution to the
plan, and we would have to reflect that as an expense in our consolidated statement of operations and as
a liability on our consolidated balance sheet. Our withdrawal liability for any multiemployer plan would
depend on the extent of the plan’s funding of vested benefits. In the ordinary course of our renegotiation
of collective bargaining agreements with labor unions that maintain these plans, we could decide to
discontinue participation in a plan, and in that event, we could face a withdrawal liability. Some
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. For a discussion
of the risks associated with our pension plans, see ‘‘Item 1A—Risk Factors’’ in this Annual Report.
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
See ‘‘Item 7—Management’s Discussion and Analysis of Financial Condition and Results of
Operations—Market Risks’’ included elsewhere in this Annual Report.
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