LensCrafters 2013 Annual Report Download - page 136

Nonqualified Pension Plans and Agreements—U.S. Holdings also maintains a nonqualified, 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.
U.S. Holdings also sponsors the Cole National Group, Inc. Supplemental Pension Plan. This plan is a
nonqualified 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.
All plans operate under the U.S. regulatory framework. The plans are subject to the provisions of the
Employee Retirement Income Security Act of 1974 (“ERISA), as amended. The Luxottica Group ERISA Plans
Compliance and Investment Committee controls and manages the operation and administration of the plans. The plans
expose the Company to actuarial risks, such as longevity risk, currency risk, and interest rate risk. The Lux Pension
Plan exposes the Company to market (investment) risk.
The following tables provide key information pertaining to the Lux Pension Plan and SERPs (amounts in
thousands of Euro).
Lux Pension Plan Benefit Obligation Plan Assets Total
At January 1, 2012 483,738
(355,563) 128,175
Service Cost 22,366 2,958 25,323
Interest expense/(income) 24,189 (19,033) 5,156
Remeasurement:
Unexpected return on plan assets
—
(33,504) (33,504)
(Gain)/loss from financial assumption changes 59,781
—
59,781
(Gain)/loss from demographic assumption
changes 310
—
310
Experience (gains)/losses (6,020)
—
(6,020)
Employer contributions
—
(48,898) (48,898)
Benefit payment (15,210) 15,210
—
Translation difference 11,590 9,056 2,534
At December 31, 2012 557,564 (429,775) 127,789
Lux Pension Plan Benefit Obligation Plan Assets Total
At January 1, 2013 557,564 (429,775) 127,789
Service Cost 24,896 2,034 26,930
Interest expense/(income) 23,476 (18,822) 4,654
Remeasurement:
Unexpected return on plan assets
—
(56,886)- (56,886)
(Gain)/loss from financial assumption changes (51,367)
—
(51,367)
(Gain)/loss from demographic assumption
changes 240
—
240
Experience (gains)/losses 5,086
— 5,086
Employer contributions
—
(38,566) (38,566)
Benefit payment (41,479) 41,479 —
Translation difference (22,679) 21,239 (1,439)
At December 31, 2013 495,737 (479,297) 16,440