LensCrafters 2011 Annual Report Download - page 219

| 143 >CONSOLIDATED FINANCIAL STATEMENTS - NOTES
The increase in Property, Plant and Equipment - net due to business combinations is
mainly due to the acquisition of MOI. Please refer to note 4 “Business Combinations” for
further details on the MOI acquisition.
Of the total depreciation expense of Euro 196.0 million (Euro 214.9 million in 2010), Euro
60.6 million (Euro 60.4 million in 2010) is included in cost of sales, Euro 108.5 million (Euro
102.5 million in 2010) in selling expenses, Euro 4.4 million (Euro 5.1 million in 2010) in
advertising expenses and Euro 22.5 million (Euro 47.0 million in 2010) in general and
administrative expenses.
Other equipment includes Euro 54.5 million for assets under construction as of December
31, 2011 (Euro 91.3 million as of December 31, 2010) mainly relating to the opening and
renovation of North America retail stores.
Leasehold improvements totaled Euro 230.4 million and Euro 228.4 million as of December
31, 2011 and December 31, 2010, respectively.
During 2011, following the implementation of SAP, the Group performed an analysis
on the classification and presentation of software within the consolidated statements
of financial position and deemed it appropriate to change the presentation of software,
which was included in property, plant and equipment – net up to December 31, 2010.
The 2010 information has been reclassified to conform to the current presentation. The
software balance as of December 31, 2010 totaled Euro 132.9 million.