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Unformatted text preview: ny to the plan amounted to U.S.$ 1,211, U.S.$ 1,266 and
U.S.$ 1,183 in 1998, 1999 and 2000, respectively, and represented the annual pension
expense of the Company for this plan.
After the implementation of Plan 2, and its subsequent substitution by Plan ARUS, few
participants remained in the defined-benefit plan (Plan 1), and it no longer represents a
significant liability for the Fund. Accordingly, the Company’s management considers that it is
no longer necessary to disclose the plan’s funded status and other information required by
SFAS 132 – “Employers’ Disclosures about Pensions and Other Posretirement Benefits”.
15 Employee benefits
In addition to the pension plans, the Company makes monthly contributions, based on total
payroll, to government pension, social security and severance indemnity plans and such
payments are expensed as incurred. Also, certain severance payments are due on dismissal of
employees, principally notice of one month's salary and a severance payment calculated at 40%
of the accumulated contributions made to the government severance indemnity plan on behalf of
the employee. Based on current operating pl...
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This note was uploaded on 02/05/2014 for the course ECON 101 taught by Professor Gottlieb during the Spring '08 term at Rutgers.
- Spring '08