LensCrafters 2013 Annual Report Download - page 137
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 |
 |
SERP Benefit Obligation Plan Assets Total
At January 1, 2012 12,343
—
12,343
Service Cost 510
—
510
Interest expense/(income) 488
—
488
—
Remeasurement:
—
Unexpected return on plan assets
—
—
(Gain)/loss from financial assumption changes 574 574
(Gain)/loss from demographic assumption
changes 2
—
2
Experience (gains)/losses 578
—
578
—
Employer contributions
—
(3,915)
(3,915)
Benefit payment (18) 18
—
Settlements (3,897) 3,897
—
Translation difference (192)
—
(192)
At December 31, 2012 10,388
—
10,388
SERP Benefit Obligation Plan Assets Total
At January 1, 2013 10,388
—
10,388
Service Cost 211
—
211
Interest expense/(income) 423
—
423
—
Remeasurement:
—
Unexpected return on plan assets
—
—
(Gain)/loss from financial assumption changes (272) (272)
(Gain)/loss from demographic assumption
changes 2
—
2
Experience (gains)/losses 619
—
619
—
Employer contributions
—
(2,281)
(2,281)
Benefit payment (20) 20
—
Settlements (2,261) 2,261
—
Translation difference (401)
—
(401)
At December 31, 2013 8,689
—
8,689
The following tables show the main assumptions used to determine the benefit cost and the benefit obligation
for the periods indicated below.
Pension Plan
SERPs
2013 2012
2013 2012
Weighted-average assumptions
used to determine benefit
obligations:
Discount rate 5.10% 4.30% 5.10% 4.30%
Rate of compensation increase
6%/4%/3%
5%/3%/2%
6%/4%/3%
5%/3%/2%
Mortality Table Static 2013
Static 2012 Static 2013
Static 2012
US Holdings’ discount rate is developed using a third party yield curve derived from non-callable bonds of at
least an Aa rating by Moody’s Investor Services or at least an AA rating by Standard & Poor’s. Each bond issue is
required to have at least USD 250 million par outstanding. The yield curve compares the future expected benefit
payments of the Lux Pension Plan to these bond yields to determine an equivalent discount rate. US Holdings uses an
assumption for salary increases based on a graduated approach of historical experience. US Holdings’ experience shows
salary increases that typically vary by age.
The sensitivity of the defined benefit obligation to changes in the significant assumptions is (amounts in
thousands):