LensCrafters 2010 Annual Report Download - page 65

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MANAGEMENT
REPORT
Further benefits will be gained from the expansion of activities in India, China, Brazil and Europe, regions that are expected
to grow significantly. The success of an extraordinary brand such as Oakley is based on the ability to successfully combine
the appeal and global visibility of the brand with an exceptional interpretation of local demands comprising dedicated
marketing approaches and styles.
Investments in commercial strategy, style and technology for the optical business – whose 2010 net sales were up by 15
percent – will also increase. More specifically, in 2011 the innovative technology TrueDigital for prescription lenses, which
significantly improves vision quality for athletes and sport enthusiasts, will be launched in Europe and Asia–Pacific.
Investments in style and an even more efficient management of the product portfolio are expected to result in double–
digit growth in 2011 in the sun segment, both for men and women.
12. SUBSEQUENT EVENTS
On January 20, 2011, the Company closed the revolving credit line with Banca Nazionale del Lavoro totaling Euro 150 million.
The original maturity of the above credit line was July 13, 2011. As of December 31, 2010, the credit line was undrawn.
On February 17, 2011, the Company announced that it entered into an agreement pursuant to which it will acquire two
sunglass specialty retail chains totaling more than 70 stores in Mexico for a total amount of Euro 17 million.
This transaction marks the Company’s entry into the sun retail business in Mexico where the Group already has a solid
presence through its wholesale division. Over time, the stores will be rebranded under the Sunglass Hut brand.
13. OTHER INFORMATION
As required by Section 2428 of the Italian Civil Code, it is reported that:
the Group carries out research and development activities in relation to production processes in order to improve 1.
their quality and increase their efficiency. The costs incurred for research and development are immaterial;
the conditions set out in Section 36 (a), (b) and (c) of the Italian Market Regulations have been satisfied;2.
no atypical and/or unusual transactions, as defined by Consob Communication 6064293 dated July 28, 2006, were 3.
undertaken during 2010;
the information required by Section 123–4. bis par. 1 of Italian Legislative Decree 58 dated February 29, 1998, is disclosed
in the corporate governance report forming an integral part of the annual financial report;
the Company is not subject to direction and coordination by others, as discussed in more detail in the corporate 5.
governance report;
the Company has made a world–wide and national group tax election (Sections 117–129 of the Italian Tax Code) 6.
starting from fiscal year 2004 and subsequently extended for another three years in 2007 and in 2010. Under this
election, Luxottica Group S.p.A., as the head of the tax group for the Group’s principal Italian companies, calculates a
single taxable base by offsetting taxable income against tax losses reported by participating companies in the same
year;
on October 25, 2010, the Board of Directors, pursuant to the provisions of Consob Regulation 17221/210, 7.
adopted by the unanimous vote of all directors a new procedure to govern transactions with related parties.
The procedure, approved by the favorable opinion of the Internal Control Committee (composed entirely of
independent directors), became applicable January 1, 2011. Until December 31, 2010, related party transactions
have been regulated by the “Guidelines for transactions with related parties”. Both documents are available at
www.luxottica.com, in the section entitled “Governance/Procedures”.