LensCrafters 2010 Annual Report Download - page 171
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|169 >
NOTES TO THE
CONSOLIDATED
FINANCIAL
STATEMENTS
Interest income (thousands of Euro) 2010 2009
Interest income on bank accounts 4,231 4,005
Interest income on securities 829 436
Interest on derivatives 1,536 776
Interest income on loans 1,898 1,670
Total interest income 8,494 6,887
Other – net from derivative financial instruments and translation differences (3,287) (349)
Other – net (4,843) (3,707)
Total other – net (8,130) (4,056)
PROVISION FOR INCOME TAXES
The income tax provision is as follows:
Income tax provision (thousands of Euro) 2010 2009
Current taxes (217,772) (168,117)
Deferred taxes (447) 8,229
Total income tax provision (218,219) (159,888)
The reconciliation between the Italian Statutory tax rate and the effective rate is shown below:
As of December 31,
2010 2009
Italian Statutory tax rate 31.4% 31.4%
Aggregate effect of different tax rates in foreign jurisdictions 1.4% (0.3%)
Non deductible impairment loss 1.1% –
Aggregate other effects 2.1% 3.3%
Effective rate 36.0% 34.4%
The Company does not provide for an accrual for income taxes on undistributed earnings of its non–Italian operations to the
related Italian parent company that are intended to be permanently invested. It is not practicable to determine the amount
of income tax liability that would result had such earnings actually been distributed. In connection with the 2010 earnings of
certain subsidiaries, the Company has provided for an accrual for income taxes related to declared dividends of earnings.
For further information on the changes occurred in 2010 as compared to 2009 please refer to note 3 of the management
report on the consolidated financial statements as of December 31, 2010 “Financial Results”.
26. COMMITMENTS AND RISKS
Licensing agreements
The Group has entered into licensing agreements with certain designers for the production, design and distribution of
sunglasses and prescription frames.