LensCrafters 2013 Annual Report Download - page 124

NON-CURRENT ASSETS
10. PROPERTY, PLANT AND EQUIPMENT
Changes in items of property, plant and equipment are reported below:
Land and
buildings,
including
leasehold
improvements
Machinery
and
equipment
Aircraft
Other
equipment
Total
As of January 1, 2012
Historical cost 893,948 983,164 38,087 582,779 2,497,978
Accumulated depreciation (405,526) (613,127) (8,776) (311,113) (1,338,542)
Total as of January 1 , 2012 488,422 370,037 29,311 271,666 1,159,436
Increases 55,700 112,415 — 101,300 269,415
Decreases (13,713) — — (15,288) (29,001)
Business combinations 850 8,904 — 2,765 12,519
Translation difference and other 2,478 9,349 — (18,820) (6,993)
Depreciation expense (58,104) (95,008) (1,561) (58,310) (212,983)
Total balance as of December 31, 2012 475,633 405,697 27,750 283,313 1,192,394
Historical cost 913,679 1,074,258 38,087 615,957 2,641,981
Accumulated depreciation (438,046) (668,561) (10,337) (332,644) (1,449,588)
Total as of December 31, 2012 475,633 405,697 27,750 283,313 1,192,394
Increases 49,600 105,885 58 118,570 274,114
Decreases (4,235)
(4,337) —
(6,707) (15,279)
Business combinations 2,367 85
—
857 3,309
Translation difference and other (7,751) 12,423
—
(63,217) (58,545)
Depreciation expense (59,603) (93,856) (1,555) (57,742) (212,757)
Total balance as of December 31, 2012 456,011 425,898 26,252 275,0751 1,183,236
Of which:
Historical cost 910,968 1,107,816 38,145 612,555 2,669,485
Accumulated depreciation (454,957) (681,918) (11,894) (337,480) (1,486,249)
Total balance as of December 31, 2013 456,011 425,898 26,252 275,075 1,183,236
The 2013 increase in Property, plant and equipment due to business combinations was mainly due to the
acquisition of Alain Mikli. Please refer to Note 4 “Business Combinations” for further details on the Alain Mikli
acquisition. The increase in 2012 was mainly due to the acquisitions of Tecnol and Sunplanet.
Of the total depreciation expense of Euro 212.8 million (Euro 213.0 million in 2012), Euro 72.3 million
(Euro 69.5 million in 2012, respectively) is included in cost of sales, Euro 110.1 million (Euro114.8 million in 2012) in
selling expenses; Euro 5.3 million (Euro3.9 million in 2012) in advertising expenses; and Euro 25.0 million (Euro 24.8
million in 2012) in general and administrative expenses.
Capital expenditures in 2013 and 2012 mainly relate to routine technology upgrades to the manufacturing
infrastructure, opening of new stores and the remodeling of older stores where the leases were extended during the
period.
Other equipment includes Euro 70.9 million for assets under construction as of December 31, 2013
(Euro 66.9 million as of December 31, 2012) mainly relating to the opening and renovation of North America retail
stores.
Leasehold improvements totaled Euro 149.5 million and Euro 153.1 million as of December 31, 2013 and
December 31, 2012 respectively.