Estee Lauder 2014 Annual Report Download - page 96

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94 THE EST{E LAUDER COMPANIES INC.
Restoration Plan (U.S.)
The Company also has an unfunded, non-qualified
domes-
tic noncontributory pension Restoration Plan to pro vide
benefits in excess of Internal Revenue Code limitations.
International Pension Plans
The Company maintains international pension plans, the
most significant of which are defined benefit pension
plans. The Company’s funding policies for these plans are
determined by local laws and regulations. The Company’s
most significant defined benefit pension obligations are
included in the plan summaries below.
Post-retirement Benefit Plans
The Company maintains a domestic post-retirement benefit
plan which provides certain medical and dental benefits
to
eligible employees. Employees hired after January 1, 2002
are
not eligible for retiree medical benefits when they
retire. Certain retired employees who are receiving monthly
pension benefits are eligible for participation in the plan.
Contributions required and benefits received by retirees
and eligible family members are dependent on the age of
the retiree. It is the Company’s practice to fund these ben-
efits as incurred and to provide discretionary funding for
the future liability up to the maximum amount deductible
for income tax purposes.
Certain of the Company’s international subsidiaries
and affiliates have post-retirement plans, although most
participants are covered by government-sponsored or
administered programs.
Plan Summaries
The significant components of the above mentioned plans as of and for the years ended June 30 are summarized as follows:
Other than
Pension Plans Pension Plans
U.S. International Post-retirement
2014 2013 2014 2013 2014 2013
(In millions)
Change in benefit obligation:
Benefit obligation at beginning of year $676.0 $706.1 $ 508.6 $ 483.4 $ 169.7 $ 201.1
Service cost 31.6 33.8 24.8 24.0 3.4 4.3
Interest cost 31.2 26.6 19.1 17.9 8.0 7.8
Plan participant contributions — — 3.5 3.0 0.8 0.9
Actuarial loss (gain) 51.4 (61.1) 41.4 14.1 12.3 (36.2)
Foreign currency exchange rate impact — — 34.9 (8.7) (0.5) (1.0)
Benefits, expenses, taxes and premiums paid (36.8) (29.4) (21.5) (23.3) (7.0) (7.2)
Plan amendments 1.8 — (8.5) — — —
Settlements and curtailments — — (3.6) (4.0) — —
Special termination benefits — — — 2.2 — —
Benefit obligation at end of year $755.2 $676.0 $ 598.7 $ 508.6 $ 186.7 $ 169.7
Change in plan assets:
Fair value of plan assets at beginning of year $659.7 $645.6 $ 438.6 $ 415.3 $ 27.7 $ 26.0
Actual return on plan assets 92.9 37.4 35.7 36.9 4.0 1.7
Foreign currency exchange rate impact — — 33.1 (15.4) — —
Employer contributions 7.2 6.1 27.9 25.9 6.2 6.3
Plan participant contributions — — 3.5 3.0 0.8 0.9
Settlements — — (3.6) (3.8) — —
Benefits, expenses, taxes and premiums
paid from plan assets (36.8) (29.4) (21.5) (23.3) (7.0) (7.2)
Fair value of plan assets at end of year $723.0 $659.7 $ 513.7 $ 438.6 $ 31.7 $ 27.7
Funded status $ (32.2) $ (16.3) $ (85.0) $ (70.0) $(155.0) $(142.0)
Amounts recognized in the Balance Sheet
consist of:
Other assets $ 79.5 $ 94.0 $ 55.7 $ 50.0 $— $—
Other accrued liabilities (14.1) (11.9) (6.6) (5.2) (6.2) (6.0)
Other noncurrent liabilities (97.6) (98.4) (134.1) (114.8) (148.8) (136.0)
Funded status (32.2) (16.3) (85.0) (70.0) (155.0) (142.0)
Accumulated other comprehensive loss 149.8 150.8 153.5 138.0 34.9 26.2
Net amount recognized $117.6 $134.5 $ 68.5 $ 68.0 $(120.1) $(115.8)
20142014
$676.0$676.0
31.631.6
31.231.2
——
51.451.4
——
(36.8)(36.8)
1.81.8
——
——
$755.2$755.2
$659.7$659.7
92.992.9
——
7.27.2
——
——
(36.8)(36.8)
$723.0$723.0
$ (32.2)$ (32.2)
$ 79.5$ 79.5
(14.1)(14.1)
(97.6)(97.6)
(32.2)(32.2)
149.8149.8
$117.6$117.6
20142014
$ 508.6$ 508.6
24.824.8
19.119.1
3.53.5
41.441.4
34.934.9
(21.5)(21.5)
(8.5)(8.5)
(3.6)(3.6)
——
$ 598.7$ 598.7
$ 438.6$ 438.6
35.735.7
33.133.1
27.927.9
3.53.5
(3.6)(3.6)
(21.5)(21.5)
$ 513.7$ 513.7
$ (85.0)$ (85.0)
$ 55.7$ 55.7
(6.6)(6.6)
(134.1)(134.1)
(85.0)(85.0)
153.5153.5
$ 68.5$ 68.5
20142014
$ 169.7$ 169.7
3.43.4
8.08.0
0.80.8
12.312.3
(0.5)(0.5)
(7.0)(7.0)
——
——
——
$ 186.7$ 186.7
$ 27.7$ 27.7
4.04.0
——
6.26.2
0.80.8
——
(7.0)(7.0)
$ 31.7$ 31.7
$(155.0)$(155.0)
$—$—
(6.2)(6.2)
(148.8)(148.8)
(155.0)(155.0)
34.934.9
$(120.1)$(120.1)