LensCrafters 2006 Annual Report Download - page 153
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Minimum payments required in each of the years subsequent to December 31, 2006 are detailed
as follows:
Year ending December 31, (Euro/000)
2007 73,002
2008 81,291
2009 75,643
2010 66,561
2011 46,308
Thereafter 216,513
Total 559,318
Total royalties and related advertising expenses for the years ended December 31, 2004, 2005 and
2006 aggregated Euro 83.0 million, Euro 121.2 million and Euro 184.1 million, respectively.
Total payments for royalties and related advertising expenses for the years ended December 31,
2004, 2005 and 2006 aggregated Euro 68.5 million, Euro 119.8 million and Euro 225.1 million,
respectively.
Leases and licenses
The Company leases through its worldwide subsidiaries various retail store, plant, warehouse and
office facilities, as well as certain of its data processing and automotive equipment under operating
lease arrangements expiring between 2007 and 2025, with options to renew at varying terms. The
lease and license arrangements for the Company's U.S. retail locations often include escalation
clauses and provisions requiring the payment of incremental rentals, in addition to any established
minimums contingent upon the achievement of specified levels of sales volume. In addition, with
the acquisition of Cole, the Company operates departments in various host stores paying
occupancy costs solely as a percentage of sales. Certain agreements which provide for operations
of departments in a major retail chain in the United States contain short-term cancellation clauses.
Total rental expense under operating leases for each year ended December 31 is as follows:
(Euro/000) 2004 2005 2006
Minimum rent 208,134 224,913 236,546
Contingent rent 15,051 57,776 64,091
Sublease income (49,247) (27,645) (35,955)
Total 173,938 255,044 264,682
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS |153 <