LensCrafters 2003 Annual Report Download - page 60

119118
(Thousands of Euro) Manufacturing Retail Inter-Segments Consolidated
and Transactions and
Wholesale Corporate Adjustments
2003
Net sales 995,109 2,002,264 (172,737) (7) 2,824,636
Operating income 191,116 269,851 (29,180) (8) 431,787
Capital expenditures 23,580 57,708 - 81,288
Depreciation and amortization 45,208 68,606 21,026 (9) 134,840
Identifiable assets 1,528,074 876,661 1,507,941 (10) 3,912,676
2002
Net sales 1,128,670 2,204,747 (154,815) (7) 3,178,602
Operating income 287,627 319,425 (5,544) (8) 601,508
Capital expenditures 81,651 91,679 - 173,330
Depreciation and amortization 46,298 77,217 22,465 (9) 145,980
Identifiable assets 1,431,317 882,113 1,272,902 (10) 3,586,332
2001
Net sales 1,146,595 2,148,797 (194,263) (7) 3,101,129
Operating income 287,570 320,149 (98,227) (8) 509,492
Capital expenditures 45,801 77,674 - 123,475
Depreciation and amortization 63,162 84,288 64,457 (9) 211,907
Identifiable assets 1,327,993 954,653 1,665,716 (10) 3,948,362
11,500,000 ADRs of Luxottica Group, representing 2.5 percent of the authorized and issued share capital, during an
18-month period starting in September 2002. The actual amount and timing of the ADS purchases will depend on
market conditions and other factors. Through December 31, 2003, U.S. Holdings has purchased 6,434,786 ADSs
(1,911,700 in 2002) at an aggregate purchase price of 69.9 million (US$ 88.1 million). In connection with the
repurchase, an amount of 69.9 million has been accounted as treasury shares in the Company’s consolidated
financial statements. The market value of the stock as of December 31, 2003, was approximately 88.8 million
(US$ 111.9 million).
12 SEGMENTS AND RELATED INFORMATION
The Company adopted SFAS No. 131, Disclosures About Segments of an Enterprise and Related Information, in
1998. The Company operates in two industry segments: manufacturing and wholesale distribution, and retail
distribution. Through its manufacturing and wholesale distribution operations, the Company is engaged in the design,
manufacture, wholesale distribution and marketing of house and designer brand lines of mid- to premium-priced
prescription frames and sunglasses. The Company operates in the retail segment through its Retail Division,
consisting of LensCrafters, Sunglass Hut International, since April 2001, and OPSM, since August 2003. As of
December 31, 2003, LensCrafters operated 877 stores throughout the U.S. and Canada; Sunglass Hut operated
1,905 stores located in North America, Europe and Australia; and, OPSM operated over 600 stores trading under
three brands across all states and territories in Australia as well as in New Zealand, Hong Kong, Singapore and
Malaysia.
The following tables summarize the segmental and geographic information deemed essential by the Company’s
management for the purpose of evaluating the Company’s performance and for making decisions about future
allocations of resources.
The “Inter-segments transactions and corporate adjustments” column includes the elimination of inter-segment
activities and corporate related expenses not allocated to reportable segments. This has the effect of increasing
reportable operating profit for the manufacturing and wholesale and retail segments. Identifiable assets are those
tangible and intangible assets used in operations in each segment. Corporate identifiable assets are principally cash,
goodwill and trade names.