Hertz 2012 Annual Report Download - page 153

HERTZ GLOBAL HOLDINGS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
The following table sets forth the net periodic pension and postretirement (including health care, life
insurance and auto) expense (in millions of dollars):
Pension Benefits Postretirement
U.S. Non-U.S. Benefits (U.S.)
Years Ended December 31,
2012 2011 2010 2012 2011 2010 2012 2011 2010
Components of Net Periodic
Benefit Cost:
Service cost ............... $24.8 $ 26.2 $ 24.0 $ 1.9 $ 4.0 $ 5.2 $0.2 $0.2 $0.3
Interest cost ............... 28.2 27.5 26.1 9.7 11.0 9.7 0.8 0.9 0.9
Expected return on plan assets . (31.5) (30.5) (26.6) (12.1) (12.8) (10.0) — — —
Net amortizations ........... 11.8 7.2 4.6 (0.1) (0.7) (1.0) — 0.1 —
Settlement loss ............ 2.0 2.2 0.4 — — ————
Curtailment gain ............————(12.9) (0.2) — — —
Special termination cost ......————0.1————
Net pension and
postretirement expense . . . $ 35.3 $ 32.6 $ 28.5 $ (0.6) $(11.3) $ 3.7 $1.0 $1.2 $1.2
Weighted-average discount rate
for expense (January 1) ...... 4.71% 5.12% 5.42% 4.78% 5.36% 5.71% 4.4% 4.9% 5.4%
Weighted-average assumed
long-term rate of return on
assets (January 1) .......... 8.00% 8.40% 8.50% 7.44% 7.46% 7.46% N/A N/A N/A
Initial health care cost trend rate . . N/A N/A N/A N/A N/A N/A 8.1% 8.4% 8.7%
Ultimate health care cost trend
rate ..................... N/A N/A N/A N/A N/A N/A 4.5% 4.5% 4.5%
Number of years to ultimate trend
rate ..................... N/A N/A N/A N/A N/A N/A 17 18 19
The balance in ‘‘Accumulated other comprehensive loss’’ at December 31, 2012 and 2011 relating to
pension benefits was $109.8 million and $99.6 million, respectively.
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 ........... — —
Effect on postretirement benefit obligation .................... $0.5 $(0.4)
The provisions charged to income for the years ended December 31, 2012, 2011 and 2010 for all other
pension plans were approximately $8.9 million, $8.0 million and $8.8 million, respectively.
The provisions charged to income for the years ended December 31, 2012, 2011 and 2010 for the
defined contribution plans were approximately $18.6 million, $18.0 million and $14.8 million,
respectively.
129