Estee Lauder 2015 Annual Report Download - page 106

THE EST{E LAUDER COMPANIES INC. 103
Restoration Plan (U.S.)
The Company also has an unfunded, non-qualified
domestic noncontributory pension Restoration Plan to
provide benefits in excess of Internal Revenue Code
limitations.
International Pension Plans
The Company maintains international pension plans, the
most significant of which are defined benefit pension
plans. The Company’s funding policies for these plans are
determined by local laws and regulations. The Company’s
most significant defined benefit pension obligations are
included in the plan summaries below.
Post-retirement Benefit Plans
The Company maintains a domestic post-retirement
benefit plan which provides certain medical and dental
benefits to eligible employees. Employees hired after Jan-
uary 1, 2002 are not eligible for retiree medical benefits
when they retire. Certain retired employees who are
receiving monthly pension benefits are eligible for partic-
ipation in the plan. Contributions required and benefits
received by retirees and eligible family members are
dependent on the age of the retiree. It is the Company’s
practice to fund these benefits as incurred and to provide
discretionary funding for the future liability up to the max-
imum amount deductible for income tax purposes.
Certain of the Company’s international subsidiaries
and affiliates have post-retirement plans, although most
participants are covered by government-sponsored or
administered programs.
Plan Summaries
The significant components of the above mentioned plans as of and for the years ended June 30 are summarized as follows:
Other than
Pension Plans Pension Plans
U.S. International Post-retirement
2015 2014 2015 2014 2015 2014
(In millions)
Change in benefit obligation:
Benefit obligation at beginning of year $ 755.2 $676.0 $ 598.7 $ 508.6 $ 186.7 $ 169.7
Service cost 31.7 31.6 23.8 24.8 3.3 3.4
Interest cost 30.4 31.2 17.3 19.1 7.6 8.0
Plan participant contributions — — 3.2 3.5 0.8 0.8
Actuarial loss (gain) 10.0 51.4 38.6 41.4 (11.9) 12.3
Foreign currency exchange rate impact — — (65.1) 34.9 (4.1) (0.5)
Benefits, expenses, taxes and premiums paid (32.9) (36.8) (24.9) (21.5) (7.1) (7.0)
Plan amendments — 1.8 — (8.5) — —
Settlements and curtailments — — (5.9) (3.6) — —
Special termination benefits — — 0.5 — — —
Benefit obligation at end of year $ 794.4 $755.2 $ 586.2 $ 598.7 $ 175.3 $ 186.7
Change in plan assets:
Fair value of plan assets at beginning of year $ 723.0 $659.7 $ 513.7 $ 438.6 $ 31.7 $ 27.7
Actual return on plan assets 1.0 92.9 59.5 35.7 0.2 4.0
Foreign currency exchange rate impact — — (51.6) 33.1 — —
Employer contributions 29.9 7.2 22.8 27.9 6.3 6.2
Plan participant contributions — — 3.2 3.5 0.8 0.8
Settlements — — (3.4) (3.6) — —
Benefits, expenses, taxes and premiums paid
from plan assets (32.9) (36.8) (24.9) (21.5) (7.1) (7.0)
Fair value of plan assets at end of year $ 721.0 $723.0 $ 519.3 $ 513.7 $ 31.9 $ 31.7
Funded status $ (73.4) $ (32.2) $ (66.9) $ (85.0) $(143.4) $(155.0)
Amounts recognized in the Balance Sheet
consist of:
Other assets $ 44.3 $ 79.5 $ 68.8 $ 55.7 $— $—
Other accrued liabilities (14.4) (14.1) (3.3) (6.6) (6.1) (6.2)
Other noncurrent liabilities (103.3) (97.6) (132.4) (134.1) (137.3) (148.8)
Funded status (73.4) (32.2) (66.9) (85.0) (143.4) (155.0)
Accumulated other comprehensive loss 198.6 149.8 125.1 153.5 22.5 34.9
Net amount recognized $ 125.2 $117.6 $ 58.2 $ 68.5 $(120.9) $(120.1)