LensCrafters 2005 Annual Report Download - page 119

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> 118 | ANNUAL REPORT 2005
In thousands of Euro Assets purchased
Cash and cash equivalents 5,990
Inventories 23,623
Property, plant and equipment 49,781
Prepaid expenses and other current assets 7,433
Accounts receivable 1,064
Trade name (useful life of 25 years, no residual value) 141,195
Other assets including deferred tax assets 12,616
In thousands of Euro Liabilities assumed
Accounts payable and accrued expenses (34,831)
Other current liabilities (11,426)
Deferred tax liabilities (42,359)
Minority interests (11,246)
Bank overdraft (42,914)
Fair value of net assets 98,926
Goodwill 154,750
Total purchase price 253,676
The following unaudited pro forma information for the year ended December 31, 2003 summarizes the
results of operations as if the acquisition of OPSM had been completed on January 1, 2003 and
includes certain pro forma adjustments such as additional amortization of the trade name recorded at
the acquisition date:
In thousands of Euro, except per share data - Unaudited 2003
Net sales 3,018,670
Income from operations 439,676
Net income 266,188
No. of shares (thousands) - Basic 448,664
No. of shares (thousands) - Diluted 450,202
Earnings per share (Euro) - Basic 0.59
Earnings per share (Euro) - Diluted 0.59
This pro forma financial information is presented for informational purposes only and is not necessarily
indicative of the results of operations that would have been achieved had the acquisition taken place on
January 1, 2003.
On November 26, 2004, the Company, through its wholly owned subsidiary, Luxottica South Pacific Pty
Limited, made an offer for all the un-owned remaining outstanding shares of OPSM.
On February 7, 2005, on the close of the offer, the Company acquired 15.5% for an aggregate total of
98.5% of OPSM’s shares, which is in excess of the compulsory acquisition threshold. Subsequently, the
Company announced the start of the compulsory acquisition process for all remaining shares in OPSM
not already owned by the Company. The compulsory acquisition process was completed on March 23,
2005 and as of that date the Company held 100% of OPSM’s shares. The acquisition of the remaining
OPSM shares was accounted for in accordance with SFAS 141, and accordingly, the purchase price of
Euro 61.9 million or A$ 102.9 million in cash (including approximately A$ 3.5 million of direct acquisition-