LensCrafters 2011 Annual Report Download - page 211

| 135 >CONSOLIDATED FINANCIAL STATEMENTS - NOTES
The total consideration for the acquisition of the additional 60 percent participation in MOI
totals Euro 95.4 million and was determined on the basis of MOI’s sales and EBITDA values
at the acquisition date. The acquisition furthers the Company’s strategy of continued
expansion of its retail business in Latin America.
The Company uses various methods to calculate the fair value of the assets acquired and
the liabilities assumed. The purchase price allocation was completed at the date these
Consolidated Financial Statements were authorized for issue. The goodwill of Euro 123.5
million is not expected to be deductible for income tax purposes. The acquisition qualifies
as a business combination achieved in stages under IFRS 3.
The Group recognized a non-recurring gain of Euro 19.0 million as a result of measuring at
fair value its 40 percent equity interest in MOI held before the business combination. The
gain is included within General & Administrative expenses in the Consolidated Statement
of Income for the period ended December 31, 2011. As there is no active market, the
Group considered the consideration paid as a reasonable approximation of the equity
value of MOI. The Group also took into consideration similar transactions carried out in the
past and the methodology used to determine equity values.
The above mentioned goodwill is mainly related to the expected growth of MOI in light of
the Company’s strategy to expand its retail business in Latin America.