LensCrafters 2013 Annual Report Download - page 123

Less: inventory obsolescence reserves (114,135) (110,588)
Total 698,950 728,767
The movements in the allowance for inventories reserve are as follows:
(Amounts in thousands of Euro)
Balance at
beginning
of period
Provision Other
(1)
Utilization
Balance at
end of
period
2012 90,562 67,894 (3,930) (43,938) 110,588
2013 110,588 74,094 (355) (70,193) 114,135
(1) Other includes translation differences for the period.
9. OTHER ASSETS
Other assets comprise the following items:
As of December 31
(Amounts in thousands of Euro)
2013 2012
Sales taxes receivable 47,105 15,476
Short-term borrowings 770 835
Prepaid expenses 1,418 2,569
Other assets 41,293 35,545
Total financial assets 90,586 54,425
Income tax receivable 46,554 47,354
Advances to suppliers 19,546 15,034
Prepaid expenses 51,469 74,262
Other assets 30,606 18,175
Total other assets 148,175 154,825
Total other assets 238,761 209,250
Other financial assets include receivables from foreign currency derivatives amounting to Euro 6.0 million as
of December 31, 2013 (Euro 6.0 million as of December 31, 2012), as well as other financial assets of the North
America retail division totaling Euro 12.1 million as of December 31, 2013 (Euro 13.2 million as of December 31,
2012).
Other assets include the short-term portion of advance payments made to certain designers for future
contracted minimum royalties totaling Euro 30.6 million as of December 31, 2013 (Euro 18.2 million as of
December 31, 2012).
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.