LensCrafters 2008 Annual Report Download - page 72

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> 70 |ANNUAL REPORT 2008
The following table sets forth the Company’s unaudited pro forma consolidated results of operations
assuming that the acquisition of Oakley was completed as of January 1 of each of the fiscal years shown
below (in thousands of Euro except for earnings per share data):
2007 2006
Net sales 5,539,000 5,243,055
Net income 470,363 385,896
Earnings per share
Basic 1.04 0.85
Diluted 1.04 0.85
Pro forma data may not be indicative of the results that would have been obtained had these events actually
occurred at the beginning of the periods presented, nor does it intend to be a projection of future results.
b) Other acquisitions and investments.
The following is a description of other acquisitions and investments. No pro forma financial information is
presented, as these acquisitions were not material, individually or in aggregate, to the Company’s
consolidated financial statements.
On July 31, 2008, Sunglass Hut UK Ltd. (“SGH”)., an indirect wholly owned subsidiary of the Company,
issued new shares of common stock and paid an aggregate of Gbp 600,000 to the shareholders of Optika
Holdings Limited (“OHL”) for all the outstanding shares of OHL. OHL through its subsidiaries operated a
chain of ophthalmic retail locations throughout the UK and Ireland under the brand name “David Clulow”.
The total consideration paid for the OHL acquisition was Euro 22.1 (approximately Gbp 17.5). OHL was a
joint venture owned 50% by the Company and 50% by a third party. Upon the completion of this transaction
the Company owns, directly and indirectly, approximately 66% of the SGH and OHL (the “combined
entity”). As a result of the acquisition the former shareholders of OHL received a minority stake of the
combined entity of 34% and a put option to sell the shares to the Company, while the Company was
granted a call option on the minority stake.The acquisition of the Company’s additional interest in OHL was
accounted for as a business combination. The Company used various methods to calculate the fair value of
the assets acquired and the liabilities assumed and all valuations are not yet completed. The goodwill
recorded in the consolidated financial statements as of December 31, 2008 totals Euro 18.1 million. There
were no significant intangibles realized or other fair value adjustments associated with the business
combination. This acquisition was made as a result of the Company’s strategy to continue expansion of its
retail business in Europe.
In February 2007, the Company completed the acquisition of certain assets and assumed certain liabilities
of D.O.C Optics Corporation and its affiliates, an optical retail business with approximately 100 stores
located primarily in the Midwest United States of America for approximately Euro 83.7 million (US$ 110.2
million) in cash. The purchase price, including direct acquisition-related expenses, was allocated to the
assets acquired and liabilities assumed based on their fair value at the date of the acquisition. The goodwill
recorded in the consolidated financial statements as of December 31, 2007 totals Euro 70.4 million, of which
Euro 64.9 million is deductible for tax purposes. The Company used various methods to calculate the fair
value of the assets acquired and liabilities assumed. The final allocation of the purchase price among the
assets and liabilities acquired and the amount of the goodwill has been completed in 2008 resulting in no
material differences from the purchase price allocation done in 2007. The acquisition was made as a result
of the Company’s strategy to continue expansion of its retail business in the United States of America.
During 2007, in compliance with the 2006 decision of the Supreme Court of India, the Company launched
a public offering to acquire an additional 31 percent of the outstanding equity share capital of RayBan Sun