LensCrafters 2010 Annual Report Download - page 173
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|171 >
NOTES TO THE
CONSOLIDATED
FINANCIAL
STATEMENTS
Total rental expense for each year ended December 31 is as follows:
Years ending December 31 (thousands of Euro) 2010 2009
Minimum lease payments 254,958 290,795
Additional lease payments 66,898 57,700
Sublease payments (26,611) (28,517)
Total 295,245 319,978
Future rental commitments are as follows:
(thousands of Euro)
2011 270,231
2012 236,574
2013 200,421
2014 171,940
2015 136,946
Subsequent years 268,877
Total 1,284,989
Other commitments
The Group is committed to pay amounts in future periods for endorsement contracts, supplier purchase and other long–term
commitments. Endorsement contracts are entered into with selected athletes and others who endorse Oakley products.
Oakley is often required to pay specified minimal annual commitments and, in certain cases, additional amounts based on
performance goals. Certain contracts provide additional incentives based on the achievement of specified goals. Supplier
commitments have been entered into with various suppliers in the normal course of business. Other commitments mainly
include auto, machinery and equipment lease commitments as well as commitments to open additional Sunglass Hut points
of sale in Macy’s department stores in the U.S. subsequent to an agreement entered into with Macy’s Inc. on December 4,
2009. As of December 31, 2010, the Group operated approximately 470 Sunglass Hut departments in Macy’s.
Future minimum amounts to be paid for endorsement contracts and supplier purchase commitments at December 31,
2010 are as follows:
Years ending December 31 (thousands of Euro) Endorsement contracts Supply commitments Other commitments
2011 7,266 1,637 14,651
2012 1,936 –5,339
2013 ––1,373
2014 ––362
Subsequent years ––234
Total 9,202 1,637 21,959
Guarantees
The United States Shoe Corporation, a wholly–owned subsidiary within the Group, has guaranteed the lease payments
for six stores in the United Kingdom. These lease agreements have varying termination dates through June 30, 2017. At
December 31, 2010, the Group’s maximum liability amounted to Euro 4.0 million (Euro 4.7 million at December 31, 2009).