LensCrafters 2010 Annual Report Download - page 155

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NOTES TO THE
CONSOLIDATED
FINANCIAL
STATEMENTS
Other financial assets primarily include security deposits totaling Euro 24.8 million (Euro 10.5 million as of December 31,
2009).
The carrying value of financial assets approximates their fair value and this value also corresponds to the maximum Group’s
exposure to credit risk. The Group does not have guarantees or other instruments for managing credit risk.
Other assets primarily include advance payments made to certain licensees for future contractual minimum royalties
totaling Euro 106.1 million (Euro 122.9 million as of December 31, 2009).
13. DEFERRED TAX ASSETS
Deferred tax assets were Euro 364.3 million and Euro 356.7 million as of December 31, 2010 and December 31, 2009,
respectively. Deferred tax assets primarily refer to temporary differences between the tax base the book value of
inventories, intangible assets, pension funds and net losses carry forward.
(thousands of Euro)
As of December 31,
2010 2009
Inventories 72,448 54,992
Insurance and other reserves 11,666 14,393
Net operating losses carry forward 26,546 43,499
Rights of return 9,148 8,085
Deferred tax on derivatives 18,711 17,903
Employee related reserves (Including pension liability) 73,837 73,432
Occupancy reserves 17,875 17,979
Trade names 72,831 76,971
Fixed assets 9,201 10,626
Other 52,038 38,826
Total deferred tax assets 364,300 356,706
CURRENT LIABILITIES
14. SHORT–TERM BORROWINGS
Short–term borrowings at December 31, 2010 reflect current account overdrafts with various banks as well as uncommitted
short–term lines of credits with different financial institutions. The interest rates on these credit lines are floating. The
credit lines may be used, if necessary, to obtain letters of credit.
The book value of bank overdrafts is approximately equal to their fair value.