LensCrafters 2011 Annual Report Download - page 231

| 155 >CONSOLIDATED FINANCIAL STATEMENTS - NOTES
The net financial position is defined below:
 December 31
(thousands of Euro) 2011 2010
A Cash and cash equivalents 905,100 679,852
B Other availabilities – –
C Marketable securities – –
D Availabilities (A + B + C) 905,100 679,852
E Current Investments – –
F Short–term borrowings 193,834 158,648
G Current portion of long–term debt 498,295 197,566
H Other liabilities – –
I Current Financial Liabilities (F + G + H) 692,129 356,214
J Net Current Financial Liabilities (I – E – D) (212,971) (323,638)
K Long–term debt 1,018,337 1,491,959
L Notes payable 1,226,246 943,112
M Other non–current liabilities – –
N Total Non–current Financial Liabilities (K + L + M) 2,244,583 2,435,071
O Net Financial Position (J + N) 2,031,612 2,111,433
Our net financial position with respect to related parties is not material.
Liabilities for termination indemnity were equal to Euro 45.3 million (Euro 45.4 million as
of December 31, 2010).
This item primarily includes the liabilities related to the post-employment benefits of the
Italian companies’ employees (hereinafter “TFR”), accounted for in accordance with article
2120 of the Italian Civil Code.
Effective January 1, 2007, the TFR system was reformed, and under the new law, employees
are given the ability to choose where the TFR compensation is invested, whereas such
compensation otherwise would be directed to the National Social Security Institute or
Pension Funds. As a result, contributions under the reformed TFR system are accounted
for as a defined contribution plan. The liability accrued until December 31, 2006 continues
to be considered a defined benefit plan. Therefore, each year, the Group adjusts its accrual
based upon headcount and inflation, excluding changes in compensation level.
21. LIABILITY
FOR TERMINATION
INDEMNITIES