LensCrafters 2005 Annual Report Download - page 136

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NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS | 135 <
management tool to provide the framework within which the fiduciary’s investment decisions are made;
establish standards to measure investment managers’ performance; outline the roles and
responsibilities of the various parties involved; and describe the ongoing review process.
Benefit payments - The following estimated future benefit payments, which reflect expected future
service, are expected to be paid in the years indicated for both the US Holdings and Cole plans
(translated for convenience at the December 31, 2005 noon buying rate):
In thousands of Euro Pension plans Supplemental plans
2006 12,068 341
2007 10,707 226
2008 12,036 1,095
2009 12,998 388
2010 14,130 332
2011-2015 100,087 3,937
Contribution - US Holdings expects to contribute US$ 29.3 million (Euro 24.7 million at the December
31, 2005 noon buying rate) to its pension plan and US$ 0.4 million (Euro 0.3 million at the December
31, 2005 noon buying rate) to its SERP in 2006.
Other benefits - US Holdings provides certain post-employment medical, disability and life insurance
benefits. As of December 31, 2004 and 2005, the accrued liability related to this obligation was
immaterial and is included in accrued employee benefit on the Consolidated Balance Sheets.
US Holdings sponsors a tax incentive savings plan covering all full-time employees. US Holdings
makes quarterly contributions in cash to the plan based on a percentage of employees’ contributions.
Additionally, US Holdings may make an annual discretionary contribution to the plan which may be
made in the form of Luxottica Group S.p.A.’s American Depository Receipts (“ADRs”) or cash.
Aggregate contributions made to the tax incentive savings plan by US Holdings were US$ 8.3 million
(Euro 6.7 million) and US$ 11.5 million (Euro 9.2 million) for fiscal years 2004 and 2005, respectively.
Effective January 1, 2006, the Cole defined contribution plan was merged into the US Holding, tax
incentive savings plan.
With the acquisition of Cole, US 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 and 2005, the accrued liability related to this benefit was US$ 1.6 million
(Euro 1.2 million) and US$ 2.4 million (Euro 2.0 million), respectively, and is included in accrued
employee benefits on the Consolidated Balance Sheet. The increase in the liability in 2005 is largely
attributable to a change in the claims cost table used by the plan’s actuary in calculating the future
liability. This change was made because the Company’s medical plans in which the participants are
enrolled for 2006 generally provide better medical benefits than the previous plans.
• Cole has qualified defined contribution plans covering all full-time employees in the U.S. Eligible
employees may contribute a percentage of their compensation to the plan. Cole provides for a