XML 109 R93.htm IDEA: XBRL DOCUMENT v2.4.0.8
Employee Retirement Benefits (Tables)
 6 Months Ended 12 Months Ended
Jun. 30, 2013
Dec. 31, 2012
Employee Retirement Benefits    
Schedule of Expected Benefit Payments [Table Text Block]  
The following table presents estimated future benefit payments (in millions of dollars):
 
Pension Benefits
 
Postretirement
Benefits (U.S.)
2013
$
31.1

 
$
1.3

2014
34.4

 
1.4

2015
40.6

 
1.5

2016
44.3

 
1.4

2017
51.1

 
1.3

2018-2022
314.1

 
6.7

 
$
515.6

 
$
13.6
Schedule of Allocation of Plan Assets [Table Text Block]  
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
2012
 
2011
Short Term Investments
$
8.3

 
$
11.6

Equity Securities:
 
 
 
U.S. Large Cap
135.9

 
119.3

U.S. Mid Cap
42.0

 
34.9

U.S. Small Cap
31.6

 
27.5

International Large Cap
109.3

 
89.0

Fixed Income Securities:
 
 
 
U.S. Treasuries
67.5

 
53.2

Corporate Bonds
83.8

 
68.7

Government Bonds
4.4

 
4.1

Municipal Bonds
9.1

 
9.5

Real Estate (REITs)
6.5

 
5.4

Total fair value of pension plan assets
$
498.4

 
$
423.2

Our U.K. Plan accounts for most of the $178.3 million in fair value of Non-U.S. plan assets. 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
2012
 
2011
Short Term Investments
$
12.9

 
$
11.6

U.K. Equities
66.1

 
57.6

Overseas Equities
67.1

 
60.5

U.K. Conventional Gilts
6.5

 
6.6

Corporate Bonds
5.3

 
5.0

Global Treasury Bonds
9.3

 
6.5

Index‑Linked Gilts‑Stocks
1.8

 
1.4

Total fair value of pension plan assets
$
169.0

 
$
149.2
Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates [Table Text Block]  
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
)
Schedule of Net Funded Status [Table Text Block]  
The following tables set forth the funded status and the net periodic pension cost of the Hertz Retirement Plan, other postretirement benefit plans (including health care and life insurance plans covering domestic (“U.S.”) employees and the retirement plans for international operations (“Non-U.S.”), together with amounts included in our consolidated balance sheets and statements of operations (in millions of dollars):
 
Pension Benefits
 
Postretirement
 
U.S.
 
Non-U.S.
 
Benefits (U.S.)
 
2012
 
2011
 
2012
 
2011
 
2012
 
2011
Change in Benefit Obligation
 
 
 
 
 
 
 
 
 
 
 
Benefit obligation at January 1
$
606.4

 
$
549.7

 
$
190.8

 
$
201.5

 
$
18.2

 
$
19.0

Service cost
24.8

 
26.2

 
1.9

 
4.0

 
0.2

 
0.2

Interest cost
28.2

 
27.5

 
9.7

 
11.0

 
0.8

 
0.9

Employee contributions
—

 
—

 
0.1

 
0.7

 
0.8

 
0.9

Plan amendments
—

 
(10.2
)
 
—

 
—

 
—

 
—

Plan curtailments
—

 
—

 
—

 
(5.9
)
 
—

 
—

Plan settlements
(5.4
)
 
(7.4
)
 
—

 
0.1

 
—

 
—

Benefits paid
(29.9
)
 
(18.4
)
 
(5.5
)
 
(4.0
)
 
(2.2
)
 
(2.2
)
Foreign exchange translation
—

 
—

 
7.7

 
(1.0
)
 
—

 
—

Actuarial loss (gain)
54.8

 
39.0

 
9.4

 
(15.1
)
 
1.2

 
(0.6
)
Plan combination
—

 
—

 
10.4

 
—

 
—

 
—

Other
—

 
—

 
(0.1
)
 
(0.5
)
 
—

 
—

Benefit obligation at December 31
$
678.9

 
$
606.4

 
$
224.4

 
$
190.8

 
$
19.0

 
$
18.2

Change in Plan Assets
 
 
 
 
 
 
 
 
 
 
 
Fair value of plan assets at January 1
$
423.2

 
$
365.9

 
$
157.0

 
$
152.8

 
$
—

 
$
—

Actual return on plan assets
64.2

 
15.3

 
15.6

 
(7.6
)
 
—

 
—

Company contributions
46.3

 
67.8

 
4.7

 
16.0

 
1.4

 
1.3

Employee contributions
—

 
—

 
0.1

 
0.7

 
0.8

 
0.9

Plan settlements
(5.4
)
 
(7.4
)
 
—

 
—

 
—

 
—

Benefits paid
(29.9
)
 
(18.4
)
 
(5.5
)
 
(4.0
)
 
(2.2
)
 
(2.2
)
Foreign exchange translation
—

 
—

 
6.5

 
(0.7
)
 
—

 
—

Other
—

 
—

 
(0.1
)
 
(0.2
)
 
—

 
—

Fair value of plan assets at December 31
$
498.4

 
$
423.2

 
$
178.3

 
$
157.0

 
$
—

 
$
—

Funded Status of the Plan
 
 
 
 
 
 
 
 
 
 
 
Plan assets less than benefit obligation
$
(180.5
)
 
$
(183.2
)
 
$
(46.1
)
 
$
(33.8
)
 
$
(19.0
)
 
$
(18.2
)
Schedule of Defined Benefit Plan, Amounts Included in Financial Statements and Assumptions Used [Table Text Block]  
 
Pension Benefits
 
Postretirement
 
U.S.
 
Non-U.S.
 
Benefits (U.S.)
 
2012
 
2011
 
2012
 
2011
 
2012
 
2011
Amounts recognized in balance sheet:
 
 
 
 
 
 
 
 
 
 
 
Liabilities
$
(180.5
)
 
$
(183.2
)
 
$
(46.1
)
 
$
(33.8
)
 
$
(19.0
)
 
$
(18.2
)
Net obligation recognized in the balance sheet
$
(180.5
)
 
$
(183.2
)
 
$
(46.1
)
 
$
(33.8
)
 
$
(19.0
)
 
$
(18.2
)
Prior service credit (cost)
$
9.1

 
$
10.1

 
$
—

 
$
—

 
$
—

 
$
—

Net gain (loss)
(167.6
)
 
(160.3
)
 
(17.5
)
 
(10.7
)
 
(2.3
)
 
(1.2
)
Accumulated other comprehensive loss
(158.5
)
 
(150.2
)
 
(17.5
)
 
(10.7
)
 
(2.3
)
 
(1.2
)
Unfunded accrued pension or postretirement benefit
(22.0
)
 
(33.0
)
 
(28.6
)
 
(23.1
)
 
(16.7
)
 
(17.0
)
Net obligation recognized in the balance sheet
$
(180.5
)
 
$
(183.2
)
 
$
(46.1
)
 
$
(33.8
)
 
$
(19.0
)
 
$
(18.2
)
Total recognized in other comprehensive (income) loss
$
8.3

 
$
34.5

 
$
6.8

 
$
12.2

 
$
1.1

 
$
(0.7
)
Total recognized in net periodic benefit cost and other comprehensive (income) loss
$
43.5

 
$
67.1

 
$
6.1

 
$
0.9

 
$
2.1

 
$
0.5

Estimated amounts that will be amortized from accumulated other comprehensive (income) loss over the next fiscal year:
 
 
 
 
 
 
 
 
 
 
 
Net gain (loss)
$
(16.0
)
 
$
(11.1
)
 
$
(0.4
)
 
$
0.1

 
$
(0.1
)
 
$
(0.1
)
Accumulated Benefit Obligation at December 31
$
619.2

 
$
537.0

 
$
216.8

 
$
187.6

 
N/A

 
N/A

Weighted‑average assumptions as of December 31
 
 
 
 
 
 
 
 
 
 
 
Discount rate
4.0
%
 
4.7
%
 
4.3
%
 
4.8
%
 
3.6
%
 
4.4
%
Expected return on assets
7.6
%
 
8.0
%
 
7.4
%
 
7.4
%
 
N/A

 
N/A

Average rate of increase in compensation
4.6
%
 
4.6
%
 
2.0
%
 
2.1
%
 
N/A

 
N/A

Initial health care cost trend rate
N/A

 
N/A

 
N/A

 
N/A

 
7.8
%
 
8.1
%
Ultimate health care cost trend rate
N/A

 
N/A

 
N/A

 
N/A

 
4.5
%
 
4.5
%
Number of years to ultimate trend rate
N/A

 
N/A

 
N/A

 
N/A

 
17

 
18
Schedule of Net Benefit Costs [Table Text Block]
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
Benefits (U.S.)
 
U.S.
 
Non-U.S.
 
 
Three Months Ended June 30,
 
2013
 
2012
 
2013
 
2012
 
2013
 
2012
Components of Net Periodic
 
 
 
 
 
 
 
 
 
 
 
Benefit Cost:
 
 
 
 
 
 
 
 
 
 
 
Service cost
$
7.1

 
$
7.0

 
$
0.7

 
$
0.3

 
$
—

 
$
0.1

Interest cost
6.9

 
7.4

 
2.3

 
2.3

 
0.1

 
0.2

Expected return on plan assets
(7.5
)
 
(8.0
)
 
(3.2
)
 
(3.0
)
 
—

 
—

Net amortizations
4.0

 
3.2

 
0.1

 
(0.1
)
 
0.1

 
—

Net pension /
 
 
 
 
 
 
 
 
 
 
 
postretirement expense
$
10.5

 
$
9.6

 
$
(0.1
)
 
$
(0.5
)
 
$
0.2

 
$
0.3

 
Pension Benefits
 
Postretirement
Benefits (U.S.)
 
U.S.
 
Non-U.S.
 
 
Six Months Ended June 30,
 
2013
 
2012
 
2013
 
2012
 
2013
 
2012
Components of Net Periodic
 
 
 
 
 
 
 
 
 
 
 
Benefit Cost:
 
 
 
 
 
 
 
 
 
 
 
Service cost
$
14.4

 
$
13.3

 
$
1.3

 
$
0.6

 
$
0.1

 
$
0.2

Interest cost
13.6

 
13.9

 
4.6

 
4.6

 
0.3

 
0.4

Expected return on plan assets
(15.0
)
 
(15.3
)
 
(6.3
)
 
(6.0
)
 
—

 
—

Net amortizations
8.3

 
6.0

 
0.2

 
(0.1
)
 
0.1

 
—

Net pension /
 
 
 
 
 
 
 
 
 
 
 
postretirement expense
$
21.3

 
$
17.9

 
$
(0.2
)
 
$
(0.9
)
 
$
0.5

 
$
0.6
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
Benefits (U.S.)
 
U.S.
 
Non-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
Schedule of Multiemployer Plans [Table Text Block]  

For plans that are not individually significant to us, the total amount of contributions is presented in the aggregate.

 
    
   Pension Protection Act Zone Status    
   Contributions by
The Hertz
Corporation		    
   Expiration
Dates of
Collective
Bargaining
Agreements
 
    
   FIP /
RP Status
Pending /
Implemented		    
 
   EIN /Pension
Plan Number		   Surcharge
Imposed
(In millions of dollars)
Pension Fund
  2012   2011   2012   2011   2010

Western Conference of Teamsters

   91-6145047   Green   Green   NA   $ 4.1   $ 3.9   $ 3.8   NA   Various

Teamsters Central States

   36-6044243   Critical   Critical   Implemented     1.2     1.3     1.2   No   Various

IAM National

   51-60321295   Green   Green   NA     0.7     0.6     0.6   NA   Various

Midwest Operating Engineers

   36-6140097   Green   Green   NA     0.5     0.4     0.2   NA   2/28/2014

Local 1034**

   13-6594795   Critical   Critical   Implemented     0.2     0.2     0.2   Yes   5/2/2013

Operating Engineers Local 324

   38-1900637   Critical   Critical   Implemented     0.1     0.1     0.1   No   6/30/2013

Western Pennsylvania Teamsters

   25-6029946   Critical   Critical   Implemented     0.1     0.1     0.1   No   11/4/2011*

7 Other Plans

     0.6     0.6     0.5        
                                     

Total Contributions

   $ 7.5   $ 7.2   $ 6.7        
                                     
*
The parties are still attempting to negotiate a successor agreement.

**
The amount contributed by Hertz to the Local 1034 Pension Fund was reported as being more than 5% of total contributions to the plan, on the fund's Form 5500 for the year ended 12/31/2011.