LensCrafters 2011 Annual Report Download - page 241

| 165 >CONSOLIDATED FINANCIAL STATEMENTS - NOTES
immaterial.
For 2012, a 9.5 percent (9.5 percent for 2011) increase in the cost of covered health care
benefits was assumed. This rate was assumed to decrease gradually to 5 percent for 2021
and remain at that level thereafter. The health care cost trend rate assumption could have a
significant effect on the amounts reported. A 1.0 percent increase or decrease in the health
care trend rate would not have a material impact on the consolidated financial statements. The
weighted-average discount rate used in determining the accumulated post-retirement benefit
obligation was 5.1 percent at December 31, 2011 and 5.5 percent at December 31, 2010.
The weighted-average discount rate used in determining the net periodic benefit cost for
2011 and 2010 was 5.5 percent and 6.15 percent, respectively.
CAPITAL STOCK
The share capital of Luxottica Group S.p.A., as of December 31, 2011, amounts to Euro
28,041,100.62 and is comprised of 467,351,677 ordinary shares with a par value of Euro
0.06 each.
As of January 1, 2010, the share capital amounted to Euro 27,964,632.60 and was comprised
of 466,077,210 ordinary shares with a par value of Euro 0.06 each.
Following the exercise of 1,274,467 options to purchase ordinary shares granted to
employees under existing stock option plans, the share capital grew by Euro 76,468.02
during 2011.
The total options exercised in 2011 were 1,274,467, of which 101,900 refer to the 2002
Plan, 350,100 refer to the 2003 Plan, 284,223 refer to the 2004 Plan, 40,000 refer to the
Extraordinary 2004 Plan, 220,244 refer to the 2005 Plan and 278,000 refer to the 2008
Plan.
LEGAL RESERVE
This reserve represents the portion of the Company’s earnings that are not distributable as
dividends, in accordance with article 2430 of the Italian Civil Code.
ADDITIONAL PAID-IN CAPITAL
This reserve increases with the expensing of options or excess tax benefits from the
exercise of options.
RETAINED EARNINGS
These include subsidiaries’ earnings that have not been distributed as dividends and
the amount of consolidated companies’ equities in excess of the corresponding carrying
amounts of investments. This item also includes amounts arising as a result of consolidation
24. LUXOTTICA
GROUP
STOCKHOLDERS’
EQUITY