LensCrafters 2011 Annual Report Download - page 225

| 149 >CONSOLIDATED FINANCIAL STATEMENTS - NOTES
The increase in other financial liabilities is primarily due to the effect of derivative contracts
on interest and exchange rates of Euro 16.1 million (Euro 5.6 million in 2010) and to other
liabilities of the Group of Euro 148.7 million (Euro 120.0 million in 2010).
Other liabilities consist of the current portion of funds set aside for the provision for risks
that primarily include:
• provisions for long-term insurance risk of Euro 0.8 million as of December 31, 2011
(Euro 1.0 million as of December 31, 2010);
• provisions for licensing expenses and advertising expenses for licensed designer
brands of Euro 5.2 million as of December 31, 2011 (Euro 6.7 million as of December
31, 2010), which are based upon advertising expenses that the Company is required to
incur under license agreements; and
• provisions for various legal disputes which have occurred in the ordinary course of
business totaling Euro 4.9 million as of December 31, 2011 (Euro 5.2 million as of
December 31, 2010).
Long-term debt consists of the following:
As of December 31
(thousands of Euro) 2011 2010
Luxottica Group S.p.A. credit agreements with various financial
institutions (a) 487,363 545,552
Senior unsecured guaranteed notes (b) 1,226,246 943,112
Credit agreement with various financial institutions (c) 225,955 242,236
Credit agreement with various financial institutions for Oakley
acquisition (d) 772,743 897,484
Short-term capital lease obligations 3,788 1,141
Other loans with banks and other third parties, including long-
term capital lease obligations, interest at various rates, payable in
installments through 2014 (e) 26,783 3,112
Total 2,742,878 2,632,637
Less: Current maturities 498,295 197,566
Long-term debt 2,244,583 2,435,071
(a) In April 2008, the Company entered into a new Euro 150.0 million unsecured credit
facility with Banca Nazionale del Lavoro. This facility was an 18-month revolving
credit facility that provided borrowing availability of up to Euro 150.0 million. The
amounts borrowed under the revolving facility could be borrowed and repaid until
final maturity. Interest accrued at EURIBOR plus 0.375 percent. The Company could
select interest periods of one, three or six months. In June 2009, the Company
renegotiated this credit facility. Amounts borrowed under the revolving loan can
be borrowed and repaid until final maturity. Interest accrues at EURIBOR plus 1.90
percent. The Company can select interest periods of one, three or six months.
The final maturity of the credit facility was July 13, 2011. On January 20, 2011, the
Company terminated this credit line.
NON-CURRENT
LIABILITIES
20. LONG–TERM
DEBT