LensCrafters 2011 Annual Report Download - page 223

| 147 >CONSOLIDATED FINANCIAL STATEMENTS - NOTES
Other financial assets primarily include security deposits totaling Euro 32.9 million (Euro
24.8 million as of December 31, 2010).
The carrying value of financial assets approximates their fair value and this value also
corresponds to the Group’s maximum exposure to credit risk. The Group does not have
guarantees or other instruments for managing credit risk.
Other assets primarily include advance payments made to certain licensees for future
contractual minimum royalties totaling Euro 88.3 million (Euro 106.1 million as of December
31, 2010).
Deferred tax assets were Euro 377.7 million and Euro 364.3 million as of December 31,
2011 and December 31, 2010, respectively. Deferred tax assets primarily refer to temporary
differences between the tax base and the book value of inventories, intangible assets,
pension funds and net loss carry forwards.
 As of December 31
(thousands of Euro) 2011 2010
Inventories 78,264 72,448
Insurance and other reserves 10,923 11,666
Net operating loss carry forwards 16,191 26,546
Rights of return 11,194 9,148
Deferred tax on derivatives 7,484 18,711
Employee related reserves (including pension liability) 90,473 73,837
Occupancy reserves 18,275 17,875
Trade names 84,278 72,831
Fixed assets 10,369 9,201
Other 50,288 52,038
Total deferred tax assets 377,739 364,300
Short-term borrowings at December 31, 2011 reflect current account overdrafts with
various banks as well as uncommitted short-term lines of credits with different financial
institutions. The interest rates on these credit lines are floating. The credit lines may be
used, if necessary, to obtain letters of credit.
The book value of bank overdrafts is approximately equal to their fair value.
This item consists of the current portion of loans granted to the Company, as further
described below in note 20 - Long-term debt.
14. DEFERRED TAX
ASSETS
CURRENT LIABILITIES
15. SHORT–TERM
BORROWINGS
16. CURRENT
PORTION OF
LONG-TERM DEBT