LensCrafters 2011 Annual Report Download - page 216

ANNUAL REPORT 2011> 140 |
Inventories are comprised of the following items:
 As of December 31
(thousands of Euro) 2011 2010
Raw materials 128,909 115,277
Work in process 49,018 52,507
Finished goods 562,141 518,804
Less: inventory obsolescence reserves (90,562) (96,552)
Total 649,506 590,036
The increase of total inventory in 2011 as compared to 2010 is due to incremental
production in the Group’s manufacturing facilities as well as to fluctuations in currency
exchange rates.
Other assets comprise the following items:
 As of December 31
(thousands of Euro) 2011 2010
Sales taxes receivable 18,785 32,524
Short-term borrowings 1,186 860
Accrued income 1,573 1,501
Receivables for royalties 2,291 2,078
Other financial assets 36,138 26,364
Total financial assets 59,973 63,327
Income tax receivable 59,795 70,720
Advances to suppliers 12,110 9,487
Prepaid expenses 69,226 66,399
Other assets 29,746 16,825
Total other assets 170,877 163,431
Total other assets 230,850 226,759
Other financial assets are composed of receivables from foreign currency derivatives
amounting to Euro 0.7 million as of December 31, 2011 (Euro 1.5 million as of December
31, 2010), as well as other financial assets of the North America retail division totaling Euro
13.2 million as of December 31, 2011 (Euro 8.7 million as of December 31, 2010).
The decrease in sales taxes receivable is mainly due to certain actions put in place during
2011 by the Italian companies which significantly reduced the outstanding receivable.
The reduction of the income tax receivable is mainly due to certain US based subsidiaries
which in 2011 utilized some of the receivables created in 2010.
8. INVENTORY - NET
9. OTHER ASSETS