LensCrafters 2011 Annual Report Download - page 100

ANNUAL REPORT 2011> 24 |
During 2011 the Group reclassified Euro 132.9 million of certain capitalized software
costs into intangible assets – net, which were previously presented within property,
plant and equipment – net, in order to enhance the presentation of our consolidated
financial position. For further details on the reclassification please refer to note 10 to the
Consolidated Financial Statements as of December 31, 2011.
As of December 31, 2011, as compared to December 31, 2010:
• accounts receivable increased by Euro 58.1 million mainly due to the increase in net
sales during 2011, partially offset by the improvement in days sales outstanding;
• inventory increased by Euro 59.5 million, mainly due to currency fluctuation effects as
well as increased production mainly in the Group’s manufacturing facilities during 2011
and to the currency fluctuation effect.
Our net financial position as of December 31, 2011 and December 31, 2010 was as follows:
December 31,
(thousands of Euro) 2011 2010
Cash and cash equivalents 905,100 679,852
Short–term borrowings (193,834) (158,648)
Current portion of long–term debt (498,295) (197,566)
Long–term debt (2,234,583) (2,435,071)
Total (2,031,612) (2,111,433)
Short-term borrowings consist of short–term uncommitted credit lines, most of which are
overdrafts and short-term revolving lines obtained by various Group companies.
As of December 31, 2011, we, together with our wholly-owned Italian subsidiary Luxottica
S.r.l., had credit lines aggregating Euro 431.8 million. The interest rate is a floating rate of
EURIBOR plus a margin on average of approximately 0.65 percent. At December 31, 2011,
these credit lines were utilized for Euro 0.5 million.
As of December 31, 2011, our wholly-owned subsidiary Luxottica US Holdings maintained
unsecured lines of credit with an aggregate maximum availability of Euro 119.8 million
(US$155.0 million). The interest rate is a floating rate and is approximately US$ LIBOR plus
80 basis points. At December 31, 2011, there were no outstanding borrowings on these
credit lines (related to guarantees of letters of credit).