LensCrafters 2010 Annual Report Download - page 41

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MANAGEMENT
REPORT
2. SIGNIFICANT EVENTS DURING THE YEAR ENDED DECEMBER 31, 2010
January
On January 29, 2010, our subsidiary Luxottica U.S. Holdings Corp. (“U.S. Holdings”) completed a private placement of US$
175 million of senior unsecured guaranteed notes, issued in three series (Series D, Series E and Series F). The aggregate
principal amount is US$ 50 million for each of the Series D and Series E Notes and US$ 75 million for the Series F Notes.
The Series D Notes mature on January 29, 2017, the Series E Notes mature on January 29, 2020 and the Series F Notes
mature on January 29, 2019. Interest on the Series D Notes accrues at 5.19 percent per annum, interest on the Series E
Notes accrues at 5.75 percent per annum and interest on the Series F Notes accrues at 5.39 percent per annum. The
proceeds from the Notes were used for general corporate purposes.
February
On February 8, 2010, we announced that we formed a long–term joint venture for the Australian and New Zealand markets
with Essilor International. The joint venture manages Eyebiz Pty Limited, Luxottica’s Sydney–based optical lens finishing
laboratory, which, as a result of this alliance, is majority–controlled by Essilor. Eyebiz supplies all of our retail optical outlets
in Australia and New Zealand: OPSM, Budget Eyewear and Laubman & Pank.
March
On March 31, 2010, we announced a three–year renewal of our exclusive license agreement with Jones Apparel Group
for the design, production and global distribution of prescription frames and sunglasses under the Anne Klein New York
brand. The new agreement, which is substantially unchanged from the previous agreement, extends the license through
December 2012, with a provision for a further renewal.
On March 31, 2010, we announced a five–year extension of the license agreement with Retail Brand Alliance, Inc. for the
design, production and worldwide distribution of prescription frames and sunglasses under the Brooks Brothers brand.
The Brooks Brothers trade name is owned by Retail Brand Alliance, Inc., which is controlled by Claudio Del Vecchio, one of
our directors. The term of the new agreement is through December 2014, with an option for a further five–year extension
under the same terms. The terms were substantially unchanged from those of the previous agreement.
April
On April 16, 2010, we announced that starting with fiscal year 2010 and for all future reporting periods we will report in
all financial communications, including reports to the United States Securities and Exchange Commission (the “SEC”),
our financial results in accordance with the International Financial Reporting Standards as issued by the International
Accounting Standards Board (“IAS/IFRS”). Up to and including the 2009 fiscal year, we had been reporting our financial
results in accordance with Generally Accepted Accounting Principles in the United States (“U.S. GAAP”).
Since 2005, we have also been preparing consolidated financial statements in Italy in accordance with IFRS as required by Italian
law and have provided the financial community with a reconciliation of our U.S. GAAP and IFRS results on a quarterly basis.
At the Stockholders’ Meeting on April 29, 2010, the stockholders approved the distribution of a cash dividend of Euro 0.35
per ordinary share, reflecting a year–over–year 59 percent increase. The aggregate dividend amount was approximately
Euro 160 million.
May
On May 27, 2010, we announced a ten–year extension of the license agreement for the design, production and worldwide
distribution of prescription frames and sunglasses under the Bvlgari brand. The term of the new agreement is from January
1, 2011 to December 31, 2020.
In May 2010, we completed the acquisition of the 35.16 percent interest held by minority stockholders in Luxottica Gözlük
Endüstri ve Ticaret Anonim Sirketi, (“Luxottica Turkey”) our Turkey–based subsidiary, for approximately Euro 61.8 million,
bringing our ownership in this subsidiary to 100 percent.