LensCrafters 2009 Annual Report Download - page 91

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NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS | 89 <
Certain employees of the Company located outside the United States are covered by state sponsored
postemployment benefit plans. These plans are generally funded in conformity with the applicable local
government regulations and amounts are expensed as contributions accrue. The aggregate liability to
the Company for these foreign postemployment benefit plans as of December 31, 2009 and 2008, was
immaterial.
Health Benefit Plans - The Company partially subsidizes health care benefits for US eligible retirees. Em-
ployees generally become eligible for retiree health care benefits when they retire from active service
between the ages of 55 and 65. Benefits are discontinued at age 65. During 2009, the Company provided
for a one-time special election of early retirement to certain associates age 50 or older with 5 or more years
of service. Benefits for this group are also discontinued at age 65 and the resulting special termination
benefit is immaterial.
As of the Cole acquisition date, the Company assumed a liability for a postretirement benefit plan main-
tained by Cole in connection with its acquisition of Pearle in 1996. This plan was closed to new participants
at the time of Cole’s acquisition of Pearle. Under this plan, the eligible former employees are provided
life insurance and certain health care benefits, which are partially subsidized by Cole. Medical benefits
under this plan can be maintained past age 65. Effective January 1, 2008, the Cole postretirement benefit
plan was merged into the Luxottica Group Postretirement Medical Benefits Program ("Lux Postretirement
Plan"). The projected benefit obligation transferred on such date was Euro 2.2 million. Upon the merger,
there were no changes to provisions of the Lux Postretirement Plan.
Amounts recognized in the consolidated balance sheets as of December 31, 2009 and 2008, consist of the
following (thousands of Euros):
2009 2008
Liabilities:
Current liabilities 223 157
Noncurrent liabilities 3,259 2,773
Total accrued postretirement liabilities 3,482 2,930
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 Euros):
Year ending December 31
2010 223
2011 252
2012 276
2013 274
2014 288
2015-2019 1,520