LensCrafters 2006 Annual Report Download - page 128

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>128 | ANNUAL REPORT 2006
6. PROPERTY, PLANT AND EQUIPMENT - NET
Property, plant and equipment-net consisted of the following:
December 31, (Euro/000) 2005 2006
Land and buildings, including leasehold improvements 538,604 568,584
Machinery and equipment 551,668 618,237
Aircraft 39,107 40,385
Other equipment 395,921 374,542
1,525,300 1,601,748
Less: accumulated depreciation and amortization 820,134 814,547
Total 705,166 787,201
Depreciation and amortization expense relating to property, plant and equipment for the years
ended December 31, 2004, 2005 and 2006 was Euro 99.3 million, Euro 122.8 million and
Euro 151.9 million, respectively.Included in other equipment is approximately Euro 68.9 million and
Euro 32.3 million of construction in progress as of December 31, 2005 and 2006, respectively.
Construction in-progress consists mainly of the opening, remodeling and relocation of stores and
in 2006 of manufacturing facilities in Italy.The decrease compared to 2005 is due to the
completion in 2005 of the corporate headquarters of the North American retail division and the
expansion of the distribution center in Atlanta.
Certain tangible assets are maintained in currencies other than Euro (the reporting currency) and,
as such, balances may fluctuate due to changes in exchange rates.
For the year ended December 31, 2005, included “Asset held for sale” in December 2005, there
was also the carrying value of an aircraft of Euro 10.8 million which became obsolete. The
Company had stopped recording depreciation expense on such asset beginning on the date that
the asset was determined to be “held for sale.” The sale of the aircraft occurred in October 2006,
for a net price of Euro 15.6 million. The gain on the sale is included in the General and
Administrative expenses in the Statement of Consolidated Income.
7. GOODWILL AND INTANGIBLE ASSETS - NET
The changes in the carrying amount of goodwill for the years ended December 31, 2005 and 2006,
are as follows: