LensCrafters 2011 Annual Report Download - page 250

ANNUAL REPORT 2011> 174 |
The table below shows movements in the stockholders’ equity due to the reserve for cash
flow hedges (amounts in thousands of Euro):
Balance as of January 1, 2010 (30,505)
Fair value adjustment of derivatives designated as cash flow hedges (45,034)
Tax effect on fair value adjustment of derivatives designated as cash flow hedges 15,126
Amounts reclassified to the consolidated statement of income 41,474
Tax effect on amounts reclassified to the consolidated statement of income (14,789)
Balance as of December 31, 2010 (33,728)
Fair value adjustment of derivatives designated as cash flow hedges (4,678)
Tax effect on fair value adjustment of derivatives designated as cash flow hedges 1,856
Amounts reclassified to the consolidated statement of income 37,228
Tax effect on amounts reclassified to the consolidated statement of income (13,292)
Balance as of December 31, 2011 (12,614)
Interest rate swaps
The notional amount of the existing interest rate swap instruments still effective as of
December 31, 2011 is reported in the following table:
Notional amount Currency
1,343,150,000 US$
190,000,000 Euro
Beginning in April 1998, certain officers and other key employees of the Company
and its subsidiaries were granted stock options of Luxottica Group S.p.A. under the
Company’s stock option plans (the “plans”). In order to strengthen the loyalty of some
key employees – with respect to individual targets, and in order to enhance the overall
capitalization of the Company – the Company’s stockholders meetings approved three
stock capital increases on March 10, 1998, September 20, 2001 and June 14, 2006,
respectively, through the issuance of new common shares to be offered for subscription
to employees. On the basis of these stock capital increases, the authorized share capital
was equal to Euro 29,537,918.57. These options become exercisable in either three
equal annual installments, two equal annual installments in the second and third years of
the three-year vesting period or 100 percent vesting on the third anniversary of the date
of grant. Certain options may contain accelerated vesting terms if there is a change in
ownership (as defined in the plans).
The stockholders’ meeting has delegated the Board of Directors to effectively execute, in
one or more installments, the stock capital increases and to grant options to employees.
The Board can also:
• establish the terms and conditions for the underwriting of the new shares;
• request the full payment of the shares at the time of their underwriting;
32. SHARE-BASED
PAYMENTS