LensCrafters 2011 Annual Report Download - page 95

| 19 >MANAGEMENT REPORT
in the three-month period ended December 31, 2011 from Euro 579.2 million in the same
period of 2010. Adjusted selling expenses increased by Euro 44.6 million, or 9.5 percent. As a
percentage of net sales, adjusted selling and advertising expenses decreased to 42.5 percent
in the three-month period ended December 31, 2011, compared to 43.0 percent in the same
period of 2010.
General and administrative expenses, including intangible asset amortization, decreased
to Euro 197.3 million during the three-month period ended December 31, 2011, compared
to Euro 210.3 million in the same period of 2010. As a percentage of net sales, general and
administrative expenses decreased from 15.6 percent in the three-month period ended
December 31, 2010 to 13.1 percent in the same period of 2011.
General and administrative expenses, including intangible asset amortization, and
excluding the above mentioned non-recurring items decreased by Euro 7.6 million, or
4.0 percent, to Euro 182.3 million in the three-month period ended December 31, 2011 as
compared to Euro 189.9 million in the same period of 2010. As a percentage of net sales,
general and administrative expenses decreased to 12.1 percent in the three-month period
ended December 31, 2011, compared to 14.1 percent in the same period of 2010.
Income from operations. For the reasons described above, income from operations
increased by Euro 32.2 million, or 33.5 percent, to Euro 128.4 million during the three-
month period ended December 31, 2011, from Euro 96.1 million in the same period of
2010. As a percentage of net sales, income from operations increased to 8.5 percent
during the three-month period ended December 31, 2011, from 7.1 percent in the same
period of 2010. Adjusted income from operations increased by Euro 22.7 million, or 19.5
percent, to Euro 139.3 million during the three-month period ended December 31, 2011,
from Euro 116.6 million in the same period of 2010. As a percentage of net sales, income
from operations increased to 9.2 percent during the three-month period ended December
31, 2011, from 8.7 percent in the same period of 2010.
Other income (expense) – net. Other income (expense) – net was Euro (26.5) million
during the three-month period ended December 31, 2011, compared to Euro (28.1) million
in the same period of 2010. Net interest expense increased to Euro 29.2 million during the
three-month period ended December 31, 2011, compared to Euro 25.8 million in the same
period of 2010.
Net income. Income before taxes increased by Euro 33.8 million, or 49.6 percent, to Euro
101.9 million during the three-month period ended December 31, 2011, from Euro 68.1
million in the same period of 2010, for the reasons described above. As a percentage of
net sales, income before taxes increased to 6.8 percent during the three-month period
ended December 31, 2011, from 5.1 percent in the same period of 2010. Net income
attributable to non-controlling interests decreased to Euro 0.7 million during the three-
month period ended December 31, 2011, compared to Euro 0.9 million in the same period
of 2010. Discontinued operations were Euro 19.9 million in 2010 and related to certain
contingent liabilities originally recorded as part of the sale of our Things Remembered
retail business in 2006, which expired. Our effective tax rate was 36.1 percent during the
three-month period ended December 31, 2011, compared to 47.0 percent in the same
period of 2010. Adjusted income before taxes increased by Euro 24.3 million, or 27.4