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



The expected return on plan assets for each funded plan is based on expected future investment returns considering the target investment mix of

plan assets.

The following table sets forth the net periodic pension and postretirement (including health care, life insurance and auto) expense:

 

















 

 















































Service cost $ 28



$ 27



$ 25



$ 2



$ 3



$ 2



$ —



$ —



$ —

Interest cost 31



Expected return on plan

assets (40)



(36)



(34)



(15)



(13)



(12)



—



—



—

Net amortizations 2



—



—



—



—



—



—

Settlement loss 4



—



—



—



—



—



—



—

Curtailment gain (10)



—



—



—



—



—



—



—



—

Special termination cost 4



—



—



—



—



—



—



—



—

Net pension and

postretirement expense $ 19



$ 26



$ 31



$ (3)



$ (1)



$ —



$ 1



$ 1



$ 1

Weighted-average discount

rate for expense

(January 1) 4.8%



4.0%



4.7%



3.2%



4.3%



4.8%



4.4%



3.6%



4.4%

Weighted-average assumed

long-term rate of return on

assets (January 1) 7.6%



7.6%



8.0%



7.4%



7.4%



7.4%



N/A



N/A



N/A

Initial health care cost trend

rate N/A



N/A



N/A



N/A



N/A



N/A



7.5%



7.8%



8.1%

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





(a) In 2014, the Company changed its method of calculating the market-related value of pension assets as more fully described below.

The loss in “Accumulated other comprehensive income (loss)” at December 31, 2014 and 2013 relating to pension benefits was $101 million and

$58 million, respectively.

Changing the assumed health care cost trend rates by one percentage point is not expected to have an impact on the total of service and interest

cost components or on the postretirement benefit obligation.

The provisions charged to income for the years ended December 31, 2014, 2013 and 2012 for all other pension plans were approximately $10

million, $10 million and $9 million, respectively.

138

Source: HERTZ GLOBAL HOLDINGS INC, 10-K, July 16, 2015 Powered by Morningstar® Document Research℠

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