LensCrafters 2012 Annual Report Download - page 224

ANNUAL REPORT 2012> 138 |
Other financial assets include receivables from foreign currency derivatives amounting to
Euro6.0 million as of December 31, 2012 (Euro0.7 million as of December 31, 2011), as
well as other financial assets of the North America retail division totaling Euro13.2 million
as of December 31, 2012 and 2011.
The reduction of the income tax receivable is mainly due to certain US-based subsidiaries
which in 2012 utilized some of the receivables created in 2011.
Other assets include the short-term portion of advance payments made to certain designers
for future contracted minimum royalties totaling Euro18.2 million as of December 31, 2012
(Euro29.7 million as of December 31, 2011).
Prepaid expenses mainly relate to the timing of payments of monthly rental expenses
incurred by the Group’s North America and Asia-Pacific retail divisions.
The net book value of financial assets is approximately equal to their fair value and this
value also corresponds to the maximum exposure of the credit risk. The Group has no
guarantees or other instruments to manage credit risk.