LensCrafters 2004 Annual Report Download - page 117

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
116
of restricted stock of Cole was approximately Euro
407.9 million (US$ 500.6 million). In connection with
the merger, the Company assumed net outstanding
indebtedness with an approximately aggregate fair
value of Euro 253.2 million (US$ 310.8 million). The
acquisition was accounted by using the purchase
method, and accordingly, the purchase price of Euro
423.7 million (US$ 520.1 million), including
approximately Euro 15.8 million (US$ 19.5 million) of
direct acquisition-related expenses, was allocated to
the assets acquired and liabilities assumed based
on their fair value at the date of the acquisition. The
Company used various methods to calculate the fair
value of the assets and liabilities and all valuations
have not yet been completed. As such, the final
allocation of assets may change during 2005. The
excess of purchase price over net assets acquired
(“goodwill”) has been recorded in the
accompanying consolidated balance sheet. The
acquisition of Cole National was made as result of
the Company’s strategy to continue expansion of its
retail business in North America.
The purchase price (including acquisition-related
expenses) has been allocated based upon the
preliminary valuation of the Company’s acquired
assets and liabilities currently assumed as follows:
Assets purchased
Cash and cash equivalents
Inventories
Accounts receivable
Prepaid expenses and other current assets
Property, plant and equipment
Trade names (useful lives of 25 years, no residual value)
Distributor network (useful life of 23 years, no residual
value)
Customer list and contracts (useful life of 21-23 years, no
residual value)
Other intangibles
Asset held for sale - Pearle Europe
Other assets
Liabilities assumed
Accounts payable
Accrued expenses and other current liabilities
Deferred tax liabilities, net
Long-term debt
Bank overdraft
Other non current liabilities
Fair value of net assets
Goodwill
Total purchase price
60,762
89,631
45,759
12,503
114,385
72,909
98,321
68,385
37,122
143,617
11,299
(47,782)
(176,571)
(21,550)
(253,284)
(22,668)
(74,933)
157,905
265,835
423,740
In thousands of Euro