LensCrafters 2012 Annual Report Download - page 240

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ANNUAL REPORT 2012> 154 |
Our net financial position with respect to related parties is not material.
Long-term debt includes finance leases liabilities for Euro29.2 million (Euro27.0 million as
of December 31, 2012).
(thousands of Euro) 2012 2011
Gross finance lease liabilities:
- no later than 1 year 5,098 4,612
- later than 1 year and no later than 5 years 15,771 12,638
- later than 5 years 13,845 14,338
Total 34,714 31,588
Future finance charges on finance lease liabilities 5,472 4,634
Present values of finance lease liabilities 29,242 26,954
The present value of finance lease liabilities is as follows:
(thousands of Euro) 2012 2011
- no later than 1 year 3,546 3,556
- later than 1 year and no later than 5 years 12,703 10,506
- later than 5 years 12,993 12,892
Total 29,242 26,954
Employee benefits amounted to Euro191.7 million (Euro197.7 million as of December
31, 2011). The balance mainly includes liabilities for termination indemnities of Euro49.3
million (Euro45.3 million as of December 31, 2011), and liabilities for employee benefits of
the US subsidiaries of the Group of Euro142.4 million (Euro152.4 million as of December
31, 2011).
Liabilities for termination indemnities mainly include post-employment benefits of the
Italian companies’ employees (hereinafter “TFR”), which at December 31, 2012 amounted
to Euro 39.7 million (Euro36.3 million as of December 31, 2011).
Effective January 1, 2007, the TFR system was reformed, and under the new law,
employees are given the ability to choose where the TFR compensation is invested,
whereas such compensation otherwise would be directed to the National Social Security
Institute or Pension Funds. As a result, contributions under the reformed TFR system
are accounted for as a defined contribution plan. The liability accrued until December
31, 2006 continues to be considered a defined benefit plan. Therefore, each year, the
Group adjusts its accrual based upon headcount and inflation, excluding changes in
compensation level.
22. EMPLOYEE
BENEFITS