Avis 2010 Annual Report Download - page 104

Table of Contents
Defined Contribution Savings Plans
The Company sponsors several defined contribution savings plans that provide certain eligible employees of the Company an opportunity to
accumulate funds for retirement. The Company matches portions of the contributions of participating employees on the basis specified by
the plans. The Company’s contributions to these plans were $9 million, $6 million and $15 million during 2010, 2009 and 2008,
respectively.
The Company made changes to various defined contribution savings plans effective January 1, 2009 and July 1, 2010. Included among these
changes were modifications to the Company’s matching contribution and of certain vesting criteria and the merger of certain plans.
Defined Benefit Pension Plans
The Company sponsors domestic non-contributory defined benefit pension plans covering certain eligible employees and contributory
defined benefit pension plans in certain foreign subsidiaries with participation in the plans at the employees’ option. Under these plans,
benefits are based on an employee’
s years of credited service and a percentage of final average compensation. However, the majority of such
plans are frozen and are no longer accruing benefits.
The funded status of the defined benefit pension plans is recognized on the Consolidated Balance Sheets and the gains or losses and prior
service costs or credits that arise during the period, but are not recognized as components of net periodic benefit cost, are recognized as a
component of accumulated other comprehensive income (loss), net of tax.
The components of net periodic benefit cost and the assumptions related to the cost consisted of the following:
F
-
40
19.
Employee Benefit Plans
For the Year Ended December 31,
2010
2009
2008
Service cost
$
2
$
2
$
2
Interest cost
12
12
12
Expected return on plan assets
(11
)
(11
)
(14
)
Amortization of unrecognized amounts
6
9
3
Net periodic benefit cost
$
9
$
12
$
3