LensCrafters 2013 Annual Report Download - page 139

Duration – The weighted average duration of the pension defined benefit obligation is 12.9 years while the
weighted average duration of the SERPs is 8.9 years. The following table provides the undiscounted estimated future
benefit payments (amounts in thousands):
Estimated Future Benefit Payments Pension Plan SERPs
2014 14,009 1,521
2015 16,658 199
2016 19,364 199
2017 22,785 469
2018 25,066 725
2019 - 2023 176,241 3,415
Other Benefits—U.S. Holdings provides certain post-employment medical, disability and life insurance
benefits. The Group’s accrued liability related to this obligation as of December 31, 2013 and 2012, was Euro 1.1
million and Euro 1.2 million, respectively.
U.S. Holdings sponsors the following additional benefit plans, which cover certain present and past employees
of some of its US subsidiaries:
(a) U.S. Holdings provides, under individual agreements, post-employment benefits for continuation of
health care benefits and life insurance coverage to former employees after employment. As of each of December 31,
2013 and 2012, the accrued liability related to these benefits was Euro 0.5 million.
(b) U.S. Holdings maintains the Cole National Group, Inc. Supplemental Retirement Benefit Plan, which
provides supplemental retirement benefits for certain highly compensated and management employees who were
previously designated by the former Board of Directors of Cole as participants. This is an unfunded noncontributory
defined contribution plan. Each participant’s account is credited with interest earned on the average balance during the
year. This plan was frozen as to future salary credits on the effective date of the Cole acquisition in 2004. The plan
liability was Euro 0.6 million and Euro 0.7 million at December 31, 2013 and 2012, respectively.
U.S. Holdings sponsors certain defined contribution plans for its United States and Puerto Rico employees.
The cost of contributions incurred in 2013 and 2012 was Euro 6.3 million and Euro 8.4 million, respectively, and was
recorded in general and administrative expenses in the consolidated statement of income. U.S. Holdings also sponsors a
defined contribution plan for all U.S. Oakley associates with at least six months of service. The cost for contributions
incurred in 2013 and 2012 was Euro 2.2 million and Euro 1.8 million, respectively.
The Group continues to participate in superannuation plans in Australia and Hong Kong. The plans provide
benefits on a defined contribution basis for employees upon retirement, resignation, disablement or death. Contributions
to defined contribution superannuation plans are recognized as an expense as the contributions are paid or become
payable to the fund. Contributions are accrued based on legislated rates and annual compensation.
Health Benefit Plans—U.S. Holdings partially subsidizes health care benefits for eligible retirees. Employees
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, U.S. Holdings 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.
The plan liability of Euro 3.2 million and Euro 3.5 million at December 31, 2013 and 2012, respectively, is
included in other non-current liabilities on the consolidated statement of financial position.
The cost of this plan in 2013 and 2012 as well as the 2014 expected contributions are immaterial.
For 2014, a 8.5%(9.0% for 2013) increase in the cost of covered health care benefits was assumed. This rate
was assumed to decrease gradually to 5% for 2021 and remain at that level thereafter. The health care cost trend rate
assumption could have a significant effect on the amounts reported. A 1.0% increase or decrease in the health care trend
rate would not have a material impact on the consolidated financial statements. The weighted—average discount rate
used in determining the accumulated postretirement benefit obligation was 5.1% at December 31, 2013 and 4.3% at
December 31, 2012.