LensCrafters 2009 Annual Report Download - page 76

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> 74 | ANNUAL REPORT 2009
Year ended December 31,
2009 2008 2007
Italian statutory tax rate 31.4% 31.4% 37.3%
Aggregate effect of different rates in foreign jurisdictions (0.3)% (1.7)% (1.7)%
Aggregate effect of Italian restructuring (5.3)%
Aggregate effect of change in tax law in Italy 2.1%
Effect of non-deductible stock-based compensation 0.1% 1.1% 1.1%
Aggregate other effects 2.7% 2.2% 1.5%
Effective rate 33.9% 33.0% 35.0%
The 2007 tax beneļ¬ t of 5.3% relates to the business reorganization of certain Italian companies which results
in the release of deferred tax liabilities and is partially offset by the increase of 2.1% in the 2007 tax charge due
to the change in the Italian statutory tax rates which results in the reduction of deferred tax assets.
The deferred tax assets and liabilities as of December 31, 2009 and 2008, respectively, were comprised of
(thousands of Euro):
2009 2008
Deferred Income Tax Assets
Inventory 54,932 71,660
Insurance and other reserves 14,393 8,580
Right of return reserve 8,085 14,471
Net operating loss carryforwards 43,499 50,565
Occupancy reserves 17,979 19,630
Employee-related reserves (including pension liability) 73,748 72,974
Tradename 92,284 76,525
Deferred tax on derivatives 17,334 21,685
Other 34,134 54,819
Fixed assets 16,568 29,684
Total deferred income tax assets 372,957 420,593
Valuation Allowance (21,500) (24,048)
Net deferred tax assets 351,457 396,545
Deferred income tax liabilities
Tradename (224,221) (241,409)
Fixed assets (51,489) (32,919)
Other intangibles (99,128) (115,031)
Dividends (10,813) (13,316)
Other (4,412) (12,067)
Total deferred income tax liabilities (390,062) (414,742)
Net deferred income tax liabilities (38,605) (18,197)