Hertz 2010 Annual Report Download - page 128

HERTZ GLOBAL HOLDINGS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
International, Ltd.’s subsidiaries. As of December 31, 2010 and 2009, our International Fleet Financing
No. 1 B.V., International Fleet Financing No. 2 B.V. and HA Funding Pty, Ltd. variable interest entities had
total assets primarily comprised of loans receivable and revenue earning equipment of $652.1 million
and $819.0 million, respectively, and total liabilities primarily comprised of debt of $651.6 million and
$818.8 million, respectively.
Accrued Interest
As of December 31, 2010 and 2009, accrued interest was $166.4 million and $120.9 million, respectively,
which is reflected in our consolidated balance sheet in ‘‘Other accrued liabilities.’’
Note 5—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 $7.7 million, $6.3 million and $7.3 million for years ended
December 31, 2010, 2009 and 2008, 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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