LensCrafters 2009 Annual Report Download - page 96

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> 94 | ANNUAL REPORT 2009
12. SHAREHOLDERS' EQUITY
In October 2009 and May 2008, the Company’s Shareholders Meetings approved cash dividends of Euro
100.8 million and 223.6 million, respectively. These amounts became payable in November 2009 and May
2008, respectively. Italian law requires that fi ve percent of net income be retained as a legal reserve until
this reserve is equal to one-fi fth 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
5.6 million and Euro 5.6 million at December 31, 2009 and 2008, respectively.
Luxottica Group’s legal reserve roll-forward for fi scal period 2007-2009 is detailed as follows (thousands of
Euro):
January 1, 2007 5,513
Increase in fi scal year 2007 23
December 31, 2007 5,536
Increase in fi scal year 2008 18
December 31, 2008 5,554
Increase in fi scal year 2009 7
December 31, 2009 5,561
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 percent of the
authorized and issued share capital. As of December 31, 2004, both repurchase programs expired and US
Holdings purchased 6,434,786 ADRs (1,911,700 in 2002 and 4,523,786 in 2003) 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).
On November 13, 2009, the share buyback program approved at the stockholders’ meeting on May 13,
2008 expired. The 2008 program provided for the buyback of a maximum of 18,500,000 of the Company’s
ordinary shares for a period of 18 months. Under the 2008 program, launched on September 21, 2009, the
Company purchased an aggregate amount of 1,325,916 ordinary shares on the Milan Stock Exchange’s
Mercato Telematico Azionario (MTA) at an average unit price of Euro 17.13, for an aggregate amount of
Euro 22,714,251.
On November 13, 2009, the Company announced the launch on November 16, 2009 of the new share buy-
back program approved at the stockholders’ meeting on October 29, 2009, which, like the 2008 program, is
intended to provide the Company with treasury shares to effi ciently manage its share capital and to imple-
ment its Performance Shares Plan. The 2009 program provides for the buyback of a maximum of 18,500,000
of the Company’s ordinary shares. Under the 2009 program the Company purchased an aggregate amount
of 1,352,154 ordinary shares on the MTA at an average unit price of Euro 17.13, for an aggregate amount
of Euro 23,166,430.
In parallel with the purchases of shares by the Company, Arnette Optic Illusions, Inc. ("Arnette") sold on
the MTA 2,764,824 Luxottica Group shares at an average unit price of Euro 17.25, for an aggregate amount
of Euro 47,683,618. Arnette intends to sell the remaining 3,669,962 Luxottica Group shares it still owned as
of December 31, 2009.
The shares still owned by Arnette and by the Company are classifi ed as treasury shares in the Company’s
consolidated fi nancial statements. The market value of these shares based on the share price as listed on
the Milan Stock Exchange at December 31, 2009, is approximately Euro 115.1 million.