LensCrafters 2011 Annual Report Download - page 234

ANNUAL REPORT 2011> 158 |
Other liabilities primarily include the liabilities for US pension funds.
The reduction of other financial liabilities as of December 31, 2011 as compared to
December 31, 2010 was mainly due to the liabilities for derivative contracts totaling Euro
8.6 million (Euro 53.0 million as of December 2010) which decreased due to the increase
in interest rates as well as to some loan contracts approaching their respective maturity
dates.
Information regarding post-employment employee benefits is provided below.
Pension funds
Qualified Pension Plans – US Holdings sponsors a qualified non-contributory defined
benefit pension plan, the Luxottica Group Pension Plan (“Lux Pension Plan”), which
provides for the payment of benefits to eligible past and present employees of US Holdings
upon retirement. Pension benefits are gradually accrued based on length of service and
annual compensation under a cash balance formula. Participants become vested in the
Lux Pension Plan after three years of vesting service as defined by the Lux Pension Plan.
Nonqualified Pension Plans and Agreements – US Holdings also maintains a non-
qualified, unfunded supplemental executive retirement plan (“Lux SERP”) for participants
of its qualified pension plan to provide benefits in excess of amounts permitted under
the provisions of 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. This plan’s benefit provisions mirror those of the Lux Pension Plan.
US Holdings also sponsors the Cole National Group, Inc. Supplemental Pension Plan. This
plan is a non-qualified unfunded SERP for certain participants of the former 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.