LensCrafters 2011 Annual Report Download - page 97

| 21 >MANAGEMENT REPORT
to (i) expenses related to the new stock option plans granted in 2011 for approximately
Euro 5.4 million and (ii) the granting of free treasury shares to certain employees of the
Group as part of the celebrations related to Group’s 50th anniversary of its founding, which
lead to a non-recurring cost of approximately Euro 6.3 million (for further details on this
one-time special grant please refer to note 24 to the Consolidated Financial Statements
as of December 31, 2011).
The change in accounts receivable was Euro (36.0) million in 2011 as compared to Euro
(1.6) million in 2010. This change in 2011 as compared to 2010 was primarily due to an
increase in sales volume in 2011 as compared to 2010 and to the increase in receivables
as a result of the growth of certain businesses in the North America Retail Division in 2011.
The inventory change was Euro (30.5) million in 2011 as compared to Euro (36.5) million in
2010. The change in 2011 as compared to 2010 was mainly due to increased production in
our manufacturing facilities. The change in accounts payable was Euro 51.1 million in 2011
as compared to Euro 86.7 million in 2010. The change in 2011 as compared to 2010 was
mainly due to better payment terms with the vendors in 2009, which continued to show
their positive effects in 2010 and 2011 as well. The change in prepaid/accrued expenses
and other was Euro 17.8 million in 2011 as compared to Euro (21.1) million in 2010. The
change in 2011 as compared to 2010 was mainly due to the liabilities determined by the
growth of certain businesses in the North America Retail Division and to the increase of the
liabilities to employees for salaries and bonus to be paid in 2012. The change in income
taxes payable was Euro (20.0) million in 2011 as compared to Euro 32.5 million in 2010. The
change in 2011 as compared to 2010 was primarily attributable to the timing of our tax
payments in the different jurisdictions in which the Group operates.
Investing activities. The Company’s net cash used in investing activities was Euro
(459.9) and Euro (367.3) million in 2011 and 2010, respectively. In 2011 the cash used in
investing activities primarily consisted of (i) Euro (228.6) million in capital expenditures,
(ii) the acquisition of intangible assets for the improvement of the Group IT structure for
Euro (107.6), (iii) the acquisition of 60 percent of Multiopticas Internacional for Euro (89.8)
million; (iv) the acquisition of two retail chains in Mexico for Euro (19.0) million; (v) the
acquisition of a retail chain in Australia for Euro (6.5) million and (vi) other minor acquisitions
for Euro (8.3) million. The main investment activities in 2010 were related to (i) Euro
(230.4) million in capital expenditures, (ii) the purchase of the remaining non-controlling
interests in Luxottica Turkey for Euro (61.8) million, (iii) the purchase of the remaining non-
controlling interests in Sunglass Hut UK for Euro (32.4) million, (iv) minor acquisitions for
Euro (13.1) million and (v) the payment of the second installment of the purchase price for
the acquisition of a 40 percent investment in Multiopticas Internacional for Euro (20.7).
Financing activities. The Company’s net cash provided by/(used in) financing activities was
Euro (175.0) million and Euro (167.7) million in 2011 and 2010, respectively. Cash used in
financing activities in 2011 mainly related to proceeds of Euro 250.6 million from long-term
debt borrowings, the repayment of maturing outstanding debt for Euro (230.4) million
and aggregate dividend payments to stockholders of Euro (206.6) million cash used in
financing activities in 2010 mainly related to proceeds of Euro 881.7 million from long-term
debt borrowings, the repayment of maturing outstanding debt for Euro (930.4) million and
aggregate dividend payments to stockholders of Euro (169.8) million.