LensCrafters 2010 Annual Report Download - page 178

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ANNUAL REPORT 2010> 176 |
29. ATYPICAL AND/OR UNUSUAL OPERATIONS
There were no atypical and/or unusual transactions occurred in 2010 and 2009.
30. DERIVATIVE FINANCIAL INSTRUMENTS
Derivatives are classified as current or non–current assets and liabilities. The fair value of derivatives is classified as a
long–term asset or liability for the portion of cash flows expiring after 12 months, and as a current asset or liability for the
portion expiring within 12 months.
The ineffective portion recorded in the consolidated statement of income amounted to Euro 47.4 thousand (Euro 482.4
thousand in 2009).
The table below shows the assets and liabilities related to derivative contracts in effect as of December 31, 2010 and
2009:
2010 2009
(thousands of Euro) Assets Liabilities Assets Liabilities
Interest rate swaps – cash flow hedge – (53,865) – (48,632)
Forward contracts – cash flow hedge 1,484 (4,311) ––
Total 1,484 58,176 – (48,632)
of which:
Non–current portion ––––
Interest rate swaps – cash flow hedge –(52,964) –(48,632)
Forward contracts – cash flow hedge ––––
Total – (52,964) – (48,632)
Current portion 1,484 (5,212) – –
The table below shows movements in the stockholders’ equity due to the reserve for cash flow hedges:
(thousands of Euro)
Balance as of January 1, 2009 (40,934)
Fair value adjustment of derivatives designated as cash flow hedges (14,809)
Tax effect on fair value adjustment of derivatives designated as cash flow hedges 5,325
Amounts reclassfied to the consolidated statement of income 29,464
Tax effect on amounts reclassified to the consolidated statement of income (9,551)
Balance as of December 31, 2009 (30,505)
Fair value adjustment of derivatives designated as cash flow hedges (45,034)
Tax effect on fair value adjustment of derivatives designated as cash flow hedges 15,126
Amounts reclassfied to the consolidated statement of income 41,474
Tax effect on amounts reclassified to the consolidated statement of income (14,789)
Balance as of December 31, 2010 (33,728)