LensCrafters 2012 Annual Report Download - page 99

| 13 >MANAGEMENT REPORT
Please find the reconciliation between adjusted selling and advertising expenses(12)/(13) and
selling and advertising expenses in the following table:
(millions of Euro) 2012 2011
Selling and advertising expenses 2,842.0 2,509.8
Adjustment for OPSM reorganization (17.3) -
Adjustment for 50th anniversary celebrations - (5.7)
Adjustment for restructuring costs in Retail Division - (2.9)
Adjusted selling and advertising expenses 2,824.6 2,501.2
General and administrative expenses, including intangible asset amortization increased by
Euro145,5 million, or 19.7 percent, to Euro883.0 million in 2012 from Euro737.5 million in
the same period of 2011. As a percentage of net sales, general and administrative expenses
were 12.5 percent in 2012 as compared to 11.9 percent in the same period of 2011.
Adjusted general and administrative expenses (14) increased by Euro147.7 million, or 20.2
percent, to Euro880.0 million in 2012 as compared to Euro732.3 million in the same period
of 2011. As a percentage of net sales, adjusted general and administrative expenses were
12.4 percent in 2012 as compared to 11.8 percent in the same period of 2011.
Please find the reconciliation between adjusted general and administrative expenses(14)
and general and administrative expenses in the following table:
(millions of Euro) 2012 2011
General and administrative expenses 883.0 737.5
Adjustment for OPSM reorganization (3.0) (9.6)
Adjustment for Multiopticas Internacional extraordinary gain - 19.0
Adjustment for 50th anniversary celebrations - (6.3)
Adjustment for restructuring costs in Retail Division - (8.3)
Adjusted general and administrative expenses 880.0 732.3
Income from Operations. For the reasons described above, income from operations
increased by Euro 174.9 million, or 21.7 percent, to Euro 982.0 million in 2012 from
Euro807.1 million in the same period of 2011. As a percentage of net sales, income from
operations increased to 13.9 percent in 2012 from 13.0 percent in the same period of 2011.
Adjusted income from operations (15), excluding, in 2012 and 2011, the above mentioned
non-recurring income and expenses, increased by Euro 182.9 million, or 22.3 percent,
to Euro1,003.8 million in 2012 as compared to Euro820.9 million in the same period of
2011. As a percentage of net sales, adjusted income from operations(15) increased to 14.2
percent in 2012 from 13.2 percent in the same period of 2011.
(14) For a further discussion of adjusted general and administrative expenses, see page 43 - “Non-IFRS Measures”.
(15) For a further discussion of adjusted income from operations, see page 43 - “Non-IFRS Measures”.