LensCrafters 2009 Annual Report Download - page 100

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> 98 | ANNUAL REPORT 2009
production and worldwide distribution of prescription frames and sunglasses under the Donna Karan and
DKNY brands. The new agreement will run through December 2014, with an option for a further fi ve-year
extension.
On July 28, 2009, Luxottica Group announced the renewal for a further period of 10 years of the license
agreement with Gianni Versace S.p.A. for the design, manufacture and global distribution of sun and pre-
scription eyewear under the Versace and Versus brands. Minimum payments required in each of the years
subsequent to December 31, 2009 are detailed as follows (thousands of Euro):
Year ending December 31
2010 48,440
2011 33,223
2012 27,050
2013 23,923
2014 15,631
Thereafter 62,809
Total 211,076
Total royalties and related advertising expenses for the fi scal years 2009, 2008 and 2007 aggregated Euro
129.1 million, Euro 139.5 million and Euro 181.6 million, respectively.
Total payments for royalties and related advertising expenses for the fi scal years 2009, 2008 and 2007 ag-
gregated Euro 95.4 million, Euro 142.4 million and Euro 278.2 million, respectively.
Leases
The Company leases through its worldwide subsidiaries various retail store, plant, warehouse and offi ce fa-
cilities, as well as certain of its data processing and automotive equipment under operating lease arrange-
ments expiring between 2010 and 2025, with options to renew at varying terms. The lease arrangements for
the Company's US 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 speci-
fi ed 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 can-
cellation clauses.
Total rental expense for each year ended December 31 is as follows (thousands of Euro):
2009 2008 2007
Minimum rent 290,795 288,743 264,496
Contingent rent 57,700 55,464 60,177
Sublease income (28,517) (26,017) (38,806)
319,978 318,190 285,867
Future minimum annual rental commitments are as follows (thousands of Euro):