LensCrafters 2004 Annual Report Download - page 134

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
133
CONTRIBUTIONS
U.S. Holdings expects to contribute US$ 27.8 million
(Euro 20.5 million at the December 31, 2004 noon
buying rate) to its pension plan in 2005.
OTHER BENEFITS
U.S. Holdings provides certain post-employment
medical, disability and life insurance benefits. As of
December 31, 2003 and 2004, the accrued liability
related to this obligation was immaterial.
U.S. Holdings sponsors a tax incentive savings plan
covering all full-time employees. U.S. Holdings makes
quarterly contributions in cash to the plan based on a
percentage of employees’ contributions. Additionally,
U.S. Holdings may make an annual discretionary
contribution to the plan which may be made in
Luxottica Group S.p.A.’s American Depositary
Receipts (“ADRs”) or cash.
Aggregate contributions made to the tax incentive
savings plan by U.S. Holdings were US$ 6.7 million
(Euro 6 million) and US$ 8.3 million (Euro 6.7 million)
for fiscal years 2003 and 2004, respectively.
With the acquisition of Cole, U.S. Holdings through
one of its wholly-owned subsidiaries, now sponsors
the following additional other benefit plans which cover
certain present and past employees of the Cole
companies acquired:
- Cole provides post-employment benefits under
individual agreements for continuation of health
care benefits and life insurance coverage to former
employees after employment but before retirement.
As of December 31, 2004, the accrued liability
related to this benefit was US$ 1.6 million (Euro 1.2
million) and is included in the accrued employee
benefits on the consolidated balance sheet.
- Cole has defined contribution plans covering all
full-time employees in the U.S. and Puerto Rico.
Eligible employees may contribute a percentage of
their compensation to the plan. In the United
States, Cole provides for a mandatory company
match in cash of 25% of the first 4% of employee
contributions. Additionally, the Company may make
an annual discretionary contribution to the plan in
cash. In Puerto Rico, the plan provides for a
mandatory match of 50% of the first 6% of
employee contributions. Contributions to both
plans are required to be made once a year. U.S.
Holdings’ matching contributions, net of forfeitures,
of Euro 0.9 million were made in early 2005 and
accrued for as of December 31, 2004.
- Cole established and maintains the Cole National
Group, Inc. Supplemental Retirement Benefit Plan,
which provides supplemental retirement benefits
for certain highly compensated and management
employees who were previously designated by the
former Board of Directors of Cole as participants.
This is an unfunded non-contributory defined
contribution plan. Each participant’s account is
credited with a percentage of the participant’s
base salary and interest earned on the average
balance during the year. The plan liability of Euro
1.5 million at December 31, 2004 is included in
accrued employee benefits on the consolidated
balance sheet.
- Cole maintained a deferred compensation plan for
executives and other senior management which
allowed for the deferral of a portion of their
compensation. A total of US$ 3.2 million (Euro 2.3
million) was paid to the participants in the fourth
quarter of 2004 in accordance with the change in
control provisions of this plan. There is no
remaining liability for this plan on the consolidated
balance sheet at December 31, 2004.