LensCrafters 2013 Annual Report Download - page 131

19. SHORT-TERM PROVISIONS FOR RISKS AND OTHER CHARGES
The balance is detailed below:
(Amounts in thousands of Euro)
Legal risk Self-insurance
Tax
provision
Other risks Returns Total
Balance as of December 31, 2011 4,899
5,620 1,796 9,927 31,094 53,337
Increases 1,647 7,395 10,525 11,229 18,233 49,029
Decreases (5,981) (8,186) (132) (8,383) (12,736) (35,419)
Business combinations — — — — — —
Foreign translation difference
reclassification and other movements 14
(60) (39) (296) (534) (914)
Balance as of December 31, 2012 578 4,769 12,150 12,477 36,057 66,032
Increases 923 7,969 42,258 12,842 20,552 84,544
Decreases (909) (6,823) (11,089) (10,711) (20,582) (50,114)
Business combinations - - - - 1,848 1,848
Foreign translation difference
reclassifications and other movements 405
(381) 20,609 164 580 21,377
Balance as of December 31, 2013 997 5,535 63,928 14,772 38,455 123,688
The Company is self-insured for certain losses relating to workers’ compensation, general liability, auto
liability, and employee medical benefits for claims filed and for claims incurred but not reported. The Company’s
liability is estimated using historical claims experience and industry averages; however, the final cost of the claims may
not be known for over five years.
Legal risk includes provisions for various litigated matters that have occurred in the ordinary course of
business.
The tax provision mainly includes the accrual related to a tax audit on Luxottica S.r.l. for fiscal years
subsequent to 2007 of approximately Euro 40.0 million.
20. OTHER LIABILITIES
As of December 31
(Amounts in thousands of Euro)
2013 2012
Premiums and discounts 2,674 4,363
Leasing rental 16,535 24,608
Insurance 10,008 9,494
Sales taxes payable 37,838 28,550
Salaries payable 228,856 245,583
Due to social security authorities 33,640 36,997
Sales commissions payable 9,008 9,252
Royalties payable 3,742 2,795
Derivative financial liabilities 1,729 1,196
Other liabilities 130,742
172,704
Total financial liabilities 474,882
535,541
Deferred income 9,492 2,883
Advances from customers 33,396 45,718
Other liabilities 5,390
5,516
Total liabilities 48,168
54,117
Total other current liabilities 523,050
589,658
NON-CURRENT LIABILITIES
21. LONG-TERM DEBT
Long-term debt was Euro 2,034.5 million and Euro 2,362.2 million as of December 31, 2013 and 2012.
The roll-forward of long-term debt as of December 31, 2013 and 2012, is as follows: