LensCrafters 2005 Annual Report Download - page 125

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> 124 | ANNUAL REPORT 2005
Intangible assets-net consisted of the following:
At December 31 - In thousands of Euro 2004 2005
LensCrafters trade name, net of accumulated amortization
of Euro 62,565 thousand and Euro 78,956 thousand
as of December 31, 2004 and 2005, respectively (a) 99,941 106,823
Ray-Ban acquired trade names, net of accumulated
amortization of Euro 76,836 thousand and Euro 90,806
thousand as of December 31, 2004 and 2005, respectively (a) 202,364 188,394
Sunglass Hut International trade name, net of accumulated
amortization of Euro 33,461 thousand and Euro 48,455
thousand as of December 31, 2004 and 2005, respectively (a) 189,614 206,570
OPSM trade names, net of accumulated amortization
of Euro 7,998 thousand and Euro 14,786 thousand
as of December 31, 2004 and 2005, respectively (see Note 4) (a) 133,133 138,172
Various trade names of Cole, net of accumulated
amortization of Euro 777 thousand and Euro 3,779
thousand as of December 31, 2004 and 2005, respectively (see Note 4) (a) 68,023 71,797
Distributor network, net of accumulated amortization of Euro 969
thousand and Euro 5,539 thousand as of December 31,
2004 and 2005, respectively (see Note 4) (b) 88,173 96,370
Customer list and contracts, net of accumulated amortization
of Euro 701 thousand and Euro 4,006 thousand as of December 31,
2004 and 2005, respectively (see Note 4) (b) 61,299 66,874
Franchise agreements, net of accumulated amortization
of Euro 209 thousand and Euro 1,195 thousand of December 31,
2004 and 2005, respectively (see Note 4) (b) 16,484 17,890
Other intangibles, net of accumulated amortization of Euro 42,085
thousand and Euro 60,392 thousand as of December 31,
2004 and 2005, respectively (see Note 4) (c) 113,060 101,913
Total 972,091 994,803
(a) The LensCrafters, Sunglass Hut International, OPSM and Cole trade names are amortized on a straight-line basis over a period of 25 years and the Ray-Ban trade
names over a period of 20 years, as the Company believes these trade names to be finite-lived assets.
(b) Distributor network, customer contracts and lists, and franchise agreements were identifiable intangibles recorded in connection with the acquisition of Cole in
2004. These assets have finite lives and are amortized on a straight-line basis over periods ranging between 20 and 23 years. The weighted average
amortization period is of 22.2 years.
(c) Other identifiable intangibles have finite lives ranging between three and 17 years and are amortized on a straight line basis. The weighted average amortization
period is 11.4 years. Most of these lives were determined based on the terms of the license agreements and non-compete agreements. During 2005,
approximately Euro 7.1 million of intangibles became fully amortized and were written off.
Certain intangible assets are maintained in currencies other then Euro (the reporting currency) and, as
such, balances may fluctuate due to changes in exchange rates.
Estimated annual amortization expense relating to identifiable assets, including the identifiable
intangibles attributable to recent acquisitions for which the purchase price allocation is not final, is shown
below:
Years ending December 31 - In thousands of Euro
2006 62,796
2007 59,331
2008 57,018
2009 56,884
2010 56,434