ANNUAL REPORT 2004 - Luxottica Group

The following table sets forth the funded status of the post-retirement benefit plan:
In thousands of Euro
Change in benefit obligation
Benefit obligation - beginning of year
Translation differences
Service cost
Interest cost
Plan participants’ contributions
Amendments
Actuarial gain
Acquisition
Benefits paid
Benefits obligation - end of year
Changes in plan assets
Fair value of plan assets - beginning of year
Translation differences
Company contribution
Plan participants’ contributions
Benefits paid
Fair value of plan assets - end of year
Funded status
Unrecognized net gain and prior service costs
Prepaid (accrued) post-retirement benefit cost
BENEFIT PAYMENTS
The following estimated future benefit payments,
which reflect expected future service, are estimated to
be paid in the years indicated for both the Luxottica
and Cole plans (amounts in thousands of Euro
translated for convenience at the noon buying rate at
December 31, 2004):
2005
2006
2007
2008
2009
2010-2014
165
150
185
196
224
1,532
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
2003
1,256
(244)
166
75
18
110
(51)
1,330
-
33
18
(51)
-
(1,330)
(160)
(1,490)
2004
1,330
(298)
126
72
23
(94)
(2)
2,359
(48)
3,468
For 2005, a 10.0% (10.5% for 2004) increase in the
cost of covered health care benefits was assumed.
This rate was assumed to decrease gradually to 5%
for 2015 and remain at that level thereafter. The health
care cost trend rate assumption has a significant
effect on the amounts reported. A 1.0% increase or
decrease in the health care trend rate would have an
immaterial impact on the consolidated financial
statements. The weighted average discount rate used
in determining the accumulated post-retirement
benefit obligation was 5.75% at September 30, 2004
and 6.00% at September 30, 2003.
The weighted average discount rate used in
determining the net periodic benefit cost for 2004 and
2003 was 6.0% and 6.5%, respectively.
Certain of the Company’s non-Italian and non-U.S.
-
25
23
(48)
-
(3,468)
(213)
(3,681)
135