LensCrafters 2007 Annual Report Download - page 162

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NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS | 161 <
12. SHAREHOLDERS' EQUITY
In June 2007 and May 2006, the Company’s Annual Shareholders Meetings approved cash
dividends of Euro 191.1 million and Euro 131.4 million, respectively. These amounts became
payable in June 2007 and May 2006, respectively. Italian law requires that five percent of net income
be retained as a legal reserve until this reserve is equal to one-fifth of the issued share capital. As
such, this legal reserve is not available for dividends to the shareholders. Legal reserves of the
Italian entities included in retained earnings were Euro 5.5 million at December 31, 2007 and 2006,
respectively.
Luxottica Group’s legal reserve roll-forward for fiscal period 2005-2007 is detailed as follows:
Previously the Board of Directors authorized US Holdings to repurchase through the open market
up to 21,500,000 ADRs of Luxottica Group S.p.A., representing at that time approximately 4.7% of
the authorized and issued share capital. As of December 31, 2004, both repurchase programs
expired and US Holdings purchased 6,434,786 (1,911,700 in 2002 and 4,523,786 in 2003) ADRs at
an aggregate purchase price of Euro 70.0 million (US$ 73.8 million translated at the exchange rate
at the time of the transactions). In connection with the repurchase, an amount of Euro 70.0 million
is classified as treasury shares in the Company’s consolidated financial statements. The market
value of the stock based on the share price as listed on the Milan Stock Exchange at December 31,
2007, is approximately Euro 139.9 million (US$ 203.9 million).
(In thousands of Euro, except share data) Year ended
December 31,
2005
Net income as reported 342,294
Add: Stock-based compensation cost included in the reported
net income, net of taxes 21,706
Deduct: Stock-based compensation expense determined under
fair-value based method for all awards, net of taxes 23,203
Pro forma 340,797
Basic earnings per share:
As reported 0.76
Pro forma 0.76
Diluted earnings per share:
As reported 0.76
Pro forma 0.75
(Euro/000)
January 1, 2005 5,454
Increase in fiscal year 2005 23
December 31, 2005 5,477
Increase in fiscal year 2006 36
December 31, 2006 5,513
Increase in fiscal year 2007 23
December 31, 2007 5,536