LensCrafters 2006 Annual Report Download - page 138

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>138 | ANNUAL REPORT 2006
Asubsidiary of the Company sponsors the Cole National Group, Inc. Supplemental Pension Plan.
This plan is a nonqualified unfunded supplemental executive retirement plan for certain
participants of the Cole pension plan who were designated by the Board of Directors of Cole on
the recommendation of Cole’s Chief Executive Officer at such time. This plan provides benefits in
excess of amounts permitted under the provisions of the prevailing tax law. The pension liability
and expense associated with this plan are accrued using the same actuarial methods and
assumptions as those used for the qualified pension plan.
The following tables provide key information pertaining to the Company’s pension plans and SERP.
The Company uses a September 30 measurement date for these plans.
Obligations and funded status:
(Euro/000) Pension plans SERP
2005 2006 2005 2006
Change in benefit obligations
Benefit obligation, beginning of period 225,028 278,947 4,814 6,530
Translation difference 33,278 (29,766) 738 (796)
Service cost 12,352 13,326 218 335
Interest cost 13,859 15,090 318 441
Actuarial loss (gain) 2,272 3,195 497 1,831
Plan amendments 297
Benefits paid (7,842) (8,841) (55) (22)
Benefit obligations, end of period 278,947 272,248 6,530 8,319
Change in plan assets
Fair value of plan assets, beginning of period 149,644 206,316 - -
Translation difference 23,137 (22,807) - -
Actual return on plan assets 17,928 14,514 - -
Employer contribution 23,449 27,610 55 22
Benefits paid (7,842) (8,841) (55) (22)
Fair value of plan assets, end of period 206,316 216,792 - -
Funded status (72,631) (55,455) (6,530) (8,319)
Unrecognized net actuarial loss 47,373 - 1,494 -
Unrecognized prior service cost 1,262 - 43 -
Other adjustments --3 -
Accrued pension costs (23,997) (55,455) (4,990) (8,319)
Amounts recognized in the consolidated balance sheets as of December 31, 2005 and 2006,
consist of the following: