LensCrafters 2005 Annual Report Download - page 72

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Luxottica Group prepared the consolidated financial statements contained in this report in accordance with
generally accepted U.S. accounting principles known as U.S. GAAP. Luxottica Group, through the approval
of CONSOB (Report No. 27021 of April 7, 2000), decided that preparing its financial and economic
statements in accordance with U.S. GAAP, rather than the corresponding International Accounting
Standards / International Financial Reporting Standards, IAS / IFRS, was opportune for the following reasons:
• it maintains continuity and consistency with the financial information reported in previous years, which
were prepared under U.S. GAAP, facilitating their comparison;
• it maintains continuity and consistency in the Group’s consolidated financial statements and those of its
U.S. subsidiaries (prepared under U.S. GAAP), which account for over 50% of the Group’s results.
Luxottica Group makes available the consolidated financial statements prepared in accordance with
International Accounting Standards / International Financial Reporting Standards (IAS/IFRS), in
compliance with EEC regulations (EEC Regulation No. 1606/2002). Beginning with the financial
statements for fiscal year 2005, European companies listed on the Stock Exchange must prepare their
consolidated financial statements in accordance with IAS/IFRS. In the table on the following page, the
differences between the two consolidated financial statements are expanded upon, with reference to
the statements of consolidated income for fiscal year 2005.
RECONCILIATION
OF THE CONSOLIDATED INCOME
STATEMENT PREPARED IN ACCORDANCE
WITH U.S. GAAP AND IAS / IFRS
For year ended december 31, 2005 U.S. GAAP IAS 19 IAS 38 IAS 39 IFRS 2 IFRS 3 Other Total IAS / IFRS
December 31, Employee Intangible Derivatives Stock Business minor & adjustments December 31,
In thousands of Euro (1) 2005 benefit depreciation Option combination reclassifications IAS / IFRS 2005
Net sales 4,370,744 4,370,744
Cost of sales (1,380,653) 2,016 (5,361) (3,345) (1,383,999)
Gross profits 2,990,091 2,016 (5,361) (3,345) 2,986,745
Operating expenses
Selling expenses (1,564,006) (630) (630) (1,564,636)
Royalties (67,050) (145) (145) (67,195)
Advertising expenses (278,691) (3,117) (816) (3,933) (282,624)
General and administrative expenses (423,619) 2,063 (2,195) 5,929 (4,996) 801 (422,819)
Trademark amortization (54,170) (54,170)
Total (2,387,537) 2,063 (3,117) (2,195) 5,929 (6,587) (3,907) (2,391,445)
Operating income 602,554 4,078 (3,117) (2,195) 5,929 (11,948) (7,253) 595,301
Other income (expenses)
Interest expenses (66,332) (2,471) 4 (2,467) (68,799)
Interest income 5,650 5,650
Other - net 15,697 4,176 4,176 19,873
Other income (expenses), net (44,985) (2,471) 4,180 1,709 (43,276)
Income before provision for income taxes 557,569 4,078 (3,117) (2,471) (2,195) 5,929 (7,768) (5,544) 552,025
Provision for income taxes (206,022) (1,392) 930 1,104 (2,067) 2,676 1,250 (204,771)
Income before minority interest
in income of consolidated subsidiaries 351,547 2,686 (3,117) (1,541) (1,092) 3,863 (5,092) (4,293) 347,254
Minority interest in income
of consolidated subsidiaries (9,253) (4) (4) (9,257)
Net income 342,294 2,686 (3,117) (1,541) (1,092) 3,863 (5,096) (4,297) 337,997
Earnings per share (ADS) (1) 0.76 0.75
Fully diluted earnings per share (ADS) 0.76 0.75
Weighted average number
of outstanding shares 450,179 450,179
Fully diluted average number of shares 453,303 453,303
(1) Except earnings per share (ADS), which are expressed in Euro.