Hertz 2010 Annual Report Download - page 132
Download and view the complete annual report
Please find page 132 of the 2010 Hertz annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88
-
89
-
90
-
91
-
92
-
93
-
94
-
95
-
96
-
97
-
98
-
99
-
100
-
101
-
102
-
103
-
104
-
105
-
106
-
107
-
108
-
109
-
110
-
111
-
112
-
113
-
114
-
115
-
116
-
117
-
118
-
119
-
120
-
121
-
122 -
123 -
124 -
125 -
126 -
127 -
128 -
129 -
130 -
131 -
132 -
133 -
134 -
135 -
136 -
137 -
138 -
139 -
140 -
141 -
142 -
143
-
144
-
145
-
146
-
147
-
148
-
149
-
150
-
151
-
152
-
153
-
154
-
155
-
156
-
157
-
158
-
159
-
160
-
161
-
162
-
163
-
164
-
165
-
166
-
167
-
168
-
169
-
170
-
171
-
172
-
173
-
174
-
175
-
176
-
177
-
178
-
179
-
180
-
181
-
182
-
183
-
184
-
185
-
186
-
187
-
188
-
189
-
190
-
191
-
192
-
193
-
194
-
195
-
196
-
197
-
198
-
199
-
200
 |
 |
HERTZ GLOBAL HOLDINGS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Changing the assumed health care cost trend rates by one percentage point is estimated to have the
following effects (in millions of dollars):
One Percentage Point
Increase Decrease
Effect on total of service and interest cost components ......... $0.1 $(0.1)
Effect on postretirement benefit obligation ................... $0.6 $(0.6)
The provisions charged to income for the years ended December 31, 2010, 2009 and 2008 for all other
pension plans were approximately (in millions of dollars) $8.8, $7.3 and $8.0, respectively.
The provisions charged to income for the years ended December 31, 2010, 2009 and 2008 for the
defined contribution plans were approximately (in millions of dollars) $14.8, $6.9 and $16.3, respectively.
Plan Assets
We have a long-term investment outlook for the assets held in our Company sponsored plans, which is
consistent with the long-term nature of each plan’s respective liabilities. We have two major plans which
reside in the U.S. and the U.K.
The U.S. Plan, or the ‘‘Plan,’’ currently has a target asset allocation of 70% equity and 30% fixed income.
The equity portion of the Plan is invested in one passively managed S&P 500 index fund, one passively
managed U.S. small/midcap fund and one actively managed international portfolio. The fixed income
portion of the Plan is actively managed by a professional investment manager and is benchmarked to
the Barclays Long Govt/Credit Index. The Plan assumes an 8.4% rate of return on assets, which
represents the expected long-term annual weighted-average return for the Plan in total.
The U.K. Plan currently invests in a professionally managed Balanced Consensus Index Fund, which has
the investment objective of achieving a total return relatively equal to its benchmark. The benchmark is
based upon the average asset weightings of a broad universe of U.K. pension funds invested in pooled
investment vehicles and each of their relevant indices. The asset allocation as of December 31, 2010,
was 87% equity, 6% fixed income and 7% cash. The U.K. Plan currently assumes a rate of return on
assets of 7.5%, which represents the expected long-term annual weighted-average return.
108