LensCrafters 2013 Annual Report Download - page 144

2017 150,397
2018 111,217
Subsequent years 222,600
Total 1,225,521
Other commitments
The Group is committed to pay amounts in future periods for endorsement contracts, supplier purchase and
other long-term commitments. Endorsement contracts are entered into with selected athletes and others who endorse
Oakley products. Oakley is often required to pay specified minimal annual commitments and, in certain cases,
additional amounts based on performance goals. Certain contracts provide additional incentives based on the
achievement of specified goals. Supplier commitments have been entered into with various suppliers in the normal
course of business. Other commitments mainly include auto, machinery and equipment lease commitments.
Future minimum amounts to be paid for endorsement contracts and supplier purchase commitments at
December 31, 2013 are as follows:
Year ending December 31
(Amounts in thousands of Euro)
Endorsement
contracts
Supply
commitments
Other
commitments
2014 12,007 24,870 10,131
2015 8,087 12,262 5,358
2016 5,689 7,827 1,243
2017 3,437 7,971 106
2018 236 8,147 —
Subsequent years 372
12,395 —
Total 29,827
73,473 16,838
Guarantees
The United States Shoe Corporation, a wholly-owned subsidiary within the Group, has guaranteed the lease
payments for five stores in the United Kingdom. These lease agreements have varying termination dates through
June 30, 2017. At December 31, 2013, the Group’s maximum liability amounted to Euro 1.7 million (Euro 2.6 million
at December 31, 2012).
A wholly-owned U.S. subsidiary guaranteed future minimum lease payments for lease agreements on certain
stores. The lease agreements were signed directly by the franchisees as part of certain franchising agreements. Total
minimum guaranteed payments under this guarantee were Euro 1.1 million (USD 1.5 million) at December 31, 2013
(Euro 1.0 million at December 31, 2012). The commitments provided for by the guarantee arise if the franchisee cannot
honor its financial commitments under the lease agreements. A liability has been accrued using an expected present
value calculation. Such amount is immaterial to the consolidated financial statements as of December 31, 2013 and
2012.
Litigation
French Competition Authority Investigation
Our French subsidiary Luxottica France S.A.S., together with other major competitors in the French eyewear
industry, has been the subject of an anti-competition investigation conducted by the French Competition Authority
relating to pricing practices in such industry. The investigation is ongoing and, to date, no formal action has yet been
taken by the French Competition Authority. As a consequence, it is not possible to estimate or provide a range of
potential liability that may be involved in this matter. The outcome of any such action, which the Group intends to
vigorously defend, is inherently uncertain, and there can be no assurance that such action, if adversely determined, will
not have a material adverse effect on our business, results of operations and financial condition.
Other proceedings
The Company and its subsidiaries are defendants in various other lawsuits arising in the ordinary course of
business. It is the opinion of the management of the Company that it has meritorious defenses against all such
outstanding claims, which the Company will vigorously pursue, and that the outcome of such claims, individually or in