Hertz 2011 Annual Report Download - page 144

HERTZ GLOBAL HOLDINGS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
The fair value measurements of our U.S. pension plan assets are based upon significant observable
inputs (Level 2) and relate to common collective trusts and other pooled investment vehicles consisting
of the following asset categories (in millions of dollars):
December 31,
Asset Category 2011 2010
Cash and cash equivalents .................................... $ 11.6 $ 4.0
Equity Securities:
U.S. Large Cap ........................................... 119.3 106.3
U.S. Mid Cap ............................................. 34.9 29.5
U.S. Small Cap ........................................... 27.5 23.5
International Large Cap ..................................... 89.0 80.8
Fixed Income Securities:
U.S. Treasuries ........................................... 53.2 49.8
Corporate Bonds .......................................... 68.7 61.9
Government Bonds ........................................ 4.1 1.3
Municipal Bonds .......................................... 9.5 4.7
Real Estate (REITs) .......................................... 5.4 4.1
Total fair value of pension plan assets ......................... $423.2 $365.9
The fair value measurements of our U.K. pension plan assets are based upon significant observable
inputs (Level 2) and relate to common collective trusts and other pooled investment vehicles consisting
of the following asset categories (in millions of dollars):
December 31,
Asset Category 2011 2010
Cash and cash equivalents ........................................ $ 18.1 $ 10.7
U.K. Equities .................................................. 57.6 54.1
Overseas Equities .............................................. 60.5 72.3
U.K. Conventional Gilts ........................................... 6.6 4.1
Corporate Bonds ............................................... 5.0 3.7
Index-Linked Gilts-Stocks ......................................... 1.4 0.7
Total fair value of pension plan assets .............................. $149.2 $145.6
Contributions
Our policy for funded plans is to contribute annually, at a minimum, amounts required by applicable
laws, regulations and union agreements. From time to time we make contributions beyond those legally
required. In 2011, we made discretionary cash contributions to our U.S. qualified pension plan of
$58.9 million. In 2010, we made discretionary cash contributions to our U.S. qualified pension plan of
$54.2 million. Based upon the significant decline in asset values in 2008, which were in line with the
overall market declines, it is likely we will continue to make cash contributions in 2012 and possibly in
future years. We expect to contribute between $50 million and $60 million to our U.S. plan during 2012.
Due to the closure of the U.K. plan on June 30, 2011, we will make lower contributions to that plan in
2012 than in 2011. The level of 2012 and future contributions will vary, and is dependent on a number of
factors including investment returns, interest rate fluctuations, plan demographics, funding regulations
and the results of the final actuarial valuation.
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