LensCrafters 2007 Annual Report Download - page 143

> 142 | ANNUAL REPORT 2007
Certain intangible assets are maintained in currencies other than 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:
December 31 (Euro/000) 2007 2006
LensCrafters trade name, net of accumulated amortization of Euro 76,080
thousand and Euro 77,518 thousand as of December 31, 2007 and 2006 (a) 74,574 89,187
Ray-Ban acquired trade names, net of accumulated amortization of Euro 118,749
thousand and Euro 104,776 thousand as of December 31, 2007 and 2006 (a) 160,747 174,424
Sunglass Hut International trade name, net of accumulated amortization
of Euro 55,838 thousand and Euro 52,633 thousand as of December 31,
2007 and 2006 (a) 150,969 176,207
OPSM acquired trade names, net of accumulated amortization of Euro 34,576
thousand and Euro 24,466 thousand as of December 31, 2007 and 2006 (a) 112,467 123,158
Various trade names of Cole, net of accumulated amortization of Euro 5,313
thousand and Euro 8,617 thousand as of December 31, 2007 and 2006 (a) 35,550 41,151
Cole distributor network, net of accumulated amortization of Euro 12,120
thousand and Euro 5,500 thousand as of December 31, 2007 and 2006 (b) 66,716 79,054
Cole customer list and contracts, net of accumulated amortization of Euro 7,011
thousand and Euro 4,163 thousand as of December 31, 2007 and 2006 (b) 39,066 45,969
Cole franchise agreements, net of accumulated amortization of Euro 2,515
thousand and Euro 1,927 thousand of December 31, 2007 and 2006 (b) 12,961 15,199
Oakley acquired trade names, net of accumulated amortization of Euro 1,972
as of December 31 2007 (see Note 5) (a) 376,937
Oakley Customer list, net of accumulated amortization of Euro 1,016
thousand at December 31, 2007 (see Note 5) (a) 143,548
Oakley other intangibles, net of accumulated
amortization of Euro 1,099 thousand at December 31, 2007 (see Note 5) (c) 22,475
Other intangibles, net of accumulated amortization of Euro 54,428 thousand
and Euro 52,635 thousand as of December 31, 2007 and 2006 (c) 110,107 86,013
Total 1,306,117 830,362
a) The LensCrafters, Sunglass Hut International, OPSM, Cole and Oakley 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 and of Oakley in 2007. These assets have finite lives and are amortized on a straight-line basis over periods ranging between 20 and 25 years. The
weighted average amortization period is 22.2 years.
c) Other identifiable intangibles have finite lives ranging between 3 and 17 years and are amortized on a straight line basis. The weighted average amortization
period is 11.3 years. Most of these useful lives were determined based on the terms of the license agreements and non-compete agreements. During 2006,
approximately Euro 11.4 million of intangibles related to a non compete agreement of Sunglass Hut International became fully amortized and were written off.
During 2007, approximately Euro 5.8 million of intangibles became fully amortized and were written off.
Intangible assets-net consist of the following:
Years ending December 31 (Euro/000)
2008 81,618
2009 78,526
2010 78,253
2011 78,823
2012 76,826