LensCrafters 2011 Annual Report Download - page 232

ANNUAL REPORT 2011> 156 |
This liability as of December 31, 2011 represents the estimated future payments required
to settle the obligation resulting from employee service, excluding the component related
to the future salary increases.
The liabilities as of December 31, 2011 amounted to Euro 36.3 million (Euro 37.8 million as
of December 31, 2009).
Contribution expense was Euro 17.1 million and Euro 16.2 million for the years 2011 and
2010, respectively.
In application of IAS 19, the valuation of TFR liability accrued as of December 31, 2006
was based on the Projected Unit Credit Cost method. The main assumptions utilized are
reported below:
As of December 31
 2011 2010
Economic assumptions
Discount rate 4.60% 4.60%
Annual TFR increase rate 3.00% 3.00%
Death probability: Those determined by
the General Accounting
Department of the
Italian Government,
named RG48
Those determined by
the General Accounting
Department of the
Italian Government,
named RG48
Retirement probability: assuming the attainment
of the first of the
retirement requirements
applicable for the
Assicurazione Generale
Obbligatoria (General
Mandatory Insurance)
assuming the attainment
of the first of the
retirement requirements
applicable for the
Assicurazione Generale
Obbligatoria (General
Mandatory Insurance)
Movements in liabilities during the course of the year are detailed in the following table:
(thousands of Euro) 2011 2010
Liabilities at the beginning of the period 37,838 37,829
Expenses for interests 1,685 1,929
Actuarial loss (income) (840) 1,575
Benefits paid (2,426) (3,495)
Liabilities at the end of the period 36,257 37,838