LensCrafters 2011 Annual Report Download - page 210

ANNUAL REPORT 2011> 134 |
The following table summarizes the financial assets and liabilities of the Group valued at
fair value:
Description (thousands of Euro)
Classification within the Consolidated
Statement of Financial Position
December 31,
2011
Fair Value Measurements at Reporting Date Using:
Level 1 Level 2 Level 3
Foreign Exchange Contracts Other current assets 668 – 668 –
Interest Rate Derivatives Other non-current liabilities 8,550 – 8,550 –
Foreign Exchange Contracts and
Interest Rate Derivatives Other current liabilities 16,058 – 16,058 –
Description (thousands of Euro)
Classification within the Consolidated
Statement of Financial Position
December 31,
2010
Fair Value Measurements at Reporting Date Using:
Level 1 Level 2 Level 3
Foreign Exchange Contracts Other current assets 1,484 – 1,484 –
Interest Rate Derivatives Other non-current liabilities 52,964 – 52,964 –
Foreign Exchange Contracts and
Interest Rate Derivatives Other current liabilities 5,590 – 5,590 –
As of December 31, 2011and 2010, the Group did not have any Level 3 fair value
measurements.
The Group maintains policies and procedures with the aim of valuing the fair value of
assets and liabilities using the best and most relevant data available.
The Group portfolio of foreign exchange derivatives includes only forward foreign
exchange contracts on the most traded currency pairs with maturity less than one year.
The fair value of the portfolio is valued using internal models that use observable market
inputs including Yield Curves and Spot and Forward prices.
The fair value of the interest rate derivatives portfolio is calculated using internal models
that maximize the use of observable market inputs including Interest Rates, Yield Curves
and Foreign Exchange Spot prices.
On June 16, 2009, the Company closed an agreement with Multiopticas Internacional S.L.
(MOI), a company operating under the GMO, Econoptics and SunPlanet retail brands in
Chile, Peru, Ecuador and Colombia, pursuant to which Luxottica acquired a 40 percent
participation in MOI. The total consideration paid for the acquisition of these stakes in
MOI was Euro 41.4 million. Under the terms of the governing agreement, the Company
had a call option for the remaining 60 percent of MOI, starting from the second half of
2012.
On May 23, 2011 the Company entered into an agreement pursuant to which it exercised in
advance, 2011, its call option on the remaining 60 percent of MOI share capital. Following
the exercise of the call option the Company has increased its shareholding in Multiopticas
Internacional to 100 percent.
4. BUSINESS
COMBINATIONS