LensCrafters 2008 Annual Report Download - page 89

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Amounts recognized in accumulated OCI are immaterial.
Benefit payments. The following estimated future benefit payments for the health benefit plans, which
reflect expected future service, are estimated to be paid in the years indicated (thousands of Euro):
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS |87 <
2008 2007
Liabilities:
Current liabilities 157 173
Noncurrent liabilities 2,773 3,260
Total accrued postretirement liabilities 2,930 3,433
Years ending December 31,
2009 157
2010 171
2011 192
2012 206
2013 215
2014-2018 1,275
Contributions. The expected contributions for 2009 are expected to be immaterial for both the
Company and aggregate employee participants.
For 2008, an 11.0% (11.5% for 2007) increase in the cost of covered health care benefits was assumed. This
rate was assumed to decrease gradually to 5% for 2020 and remain at that level thereafter. The health care
cost trend rate assumption could have a significant effect on the amounts reported. A 1% increase or
decrease in the health care trend rate would not have a material impact on the consolidated financial
statements. The weighted-average discount rate used in determining the accumulated postretirement
benefit obligation was 6.3% at December 31, 2008 and 6.5% at September 30, 2007.
The weighted-average discount rate used in determining the net periodic benefit cost for 2008 and 2007,
was 6.5%, and 6.00%, respectively.
Implementation of SFAS No. 158
As required by SFAS 158, during fiscal 2008 the Company adopted a December 31 measurement date for
the Lux Plan, SERP and the Lux Postretirement Plan. As a result of this change in measurement date, the
adjustment to retained earnings net of tax related to the Lux Plan, the SERP and Lux Postretirement Plan
was a decrease of Euro 2.8 million, Euro 0.2 million and Euro 0.1 million, respectively. The impact to
accumulated other comprehensive Income net of tax related to the Lux Plan and the SERP plans was an
increase of Euro 0.2million, Euro 0.0 million and Euro 0.0 million, respectively
11. STOCK OPTION AND INCENTIVE PLANS
Stock option plan. Beginning in April 1998, certain officers and other key employees of the Company
and its subsidiaries were granted stock options of Luxottica Group S.p.A. under the Company’s stock
option plans (the “plans”). The aggregate number of shares permitted to be granted under these plans
to the employees is 24,714,600. The Company believes that the granting of options to these key
employees strengthens their loyalty and recognizes their contribution to the Group’s success. Prior to
2006, under the older plans the stock options were granted at a price that was equal to or greater than
market value of the shares at the date of grant. Under the 2005 and 2006 plans, options were granted at