LensCrafters 2007 Annual Report Download - page 142

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NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS | 141 <
6. PROPERTY, PLANT AND EQUIPMENT - NET
Property, plant and equipment-net consisted of the following:
Depreciation and amortization expense relating to property, plant and equipment for the years
ended December 31, 2007, 2006 and 2005 was Euro 163.3 million, Euro 151.9 million and 122.8
million, respectively. Included in other equipment is approximately Euro 71.6 million and Euro 32.3
million of construction in progress as of December 31, 2007 and 2006, respectively. Construction
in-progress consists mainly of the opening, remodeling and relocation of stores and the expansion
of manufacturing facilities in Italy.
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.
7. GOODWILL AND INTANGIBLE ASSETS - NET
The changes in the carrying amount of goodwill for the years ended December 31, 2006 and 2007,
are as follows:
December 31 (Euro/000) 2007 2006
Land and buildings, including leasehold improvements 687,428 568,584
Machinery and equipment 697,776 629,362
Aircraft 40,222 40,385
Other equipment 439,696 363,417
1,865,122 1,601,748
Less: accumulated depreciation and amortization 807,340 814,547
Total 1,057,782 787,201
(Euro/000) Retail Wholesale Oakley Total
Balance as of January 1, 2006 1,350,776 295,897 - 1,646,673
Acquisitions (a) 111,186 44,738 155,924
Adjustments on previous acquisitions (a) (3,249) - (3,249)
Change in exchange rates (b) (104,714) (20) (104,734)
Balance as of December 31, 2006 1,353,999 340,615 - 1,694,614
Acquisitions (a) 86,021 9,611 904,148 999,780
Adjustments on previous acquisitions (a) - (15,678) - (15,678)
Change in exchange rates (b) (84,323) 4,393 3,054 (76,876)
Balance as of December 31, 2007 1,355,697 338,941 907,202 2,601,840
a) Goodwill acquired in 2006 consisted primarily of the acquisition in Turkey in the Wholesale segment, and of minor acquisitions in Retail segment. Goodwill
acquired in 2007 mainly consists of the acquisition of Oakley, of the acquisition of the additional 26% of the net equity of the Indian subsidiary and of minor
acquisitions in the Retail segment.
b) Certain goodwill balances are denominated in currencies other than Euro (the reporting currency) and, as such, balances may fluctuate due to changes in
exchange rates.