LensCrafters 2013 Annual Report Download - page 145

the aggregate, will not have a material adverse effect on the Company’s consolidated financial position or results of
operations.
29. RELATED PARTY TRANSACTIONS
Licensing Agreements
The Group executed an exclusive worldwide license for the production and distribution of Brooks Brothers
brand eyewear. The brand is held by Brooks Brothers Group, Inc. (“BBG”), which is owned and controlled by a director
of the Company, Claudio Del Vecchio. The license expires on December 31, 2014 but is renewable until December 31,
2019. Royalties paid under this agreement to BBG were Euro 0.8 million in 2013 and Euro 0.7 million in 2012.
Service Revenues
During the years ended December 31, 2013 and 2012 and U.S. Holdings performed consulting and advisory
services relating to risk management and insurance for Brooks Brothers Group, Inc. Amounts received for the services
provided for those years were Euro 0.1 million in each year. Management believes that the compensation received for
these services was fair to the Company.
Incentive Stock Option Plans
On September 14, 2004, the Company announced that its primary stockholder, Leonardo Del Vecchio, had
allocated 2.11% of the shares of the Company—equal to 9.6 million shares, owned by him through the company La
Leonardo Finanziaria S.r.l. and currently owned through Delfin S.à r.l., a financial company owned by the Del Vecchio
family, to a stock option plan for the senior management of the Company. The options became exercisable on June 30,
2006 following the meeting of certain economic objectives and, as such, the holders of these options became entitled to
exercise such options beginning on that date until their termination in 2014. During 2013, 3.1 million options (3.9
million in 2012) from this grant were exercised. As of December 31, 2013, 0.3 million options were outstanding.
A summary of related party transactions as of December 31, 2013 and 2012 is provided below.
Related parties
As of December 31, 2013
Consolidated Statement
of Income
Consolidated Statement
of Financial Position
(Amounts in thousands of Euro)
Revenues Costs Assets Liabilities
Brooks Brothers Group, Inc. 348 1,000 68 254
Eyebiz Laboratories Pty Limited 1,667 45,814 6,922 9,415
Salmoiraghi & Viganò 13,812 — 53,245 —
Others 583 1,115 2,186 426
Total 16,409 47,930 62,422 10,095
Related parties
As of December 31, 2012
Consolidated Statement
of Income
Consolidated Statement
of Financial Position
(Amounts in thousands of Euro)
Revenues Costs Assets Liabilities
Brooks Brothers Group, Inc. — 802 13 40
Eyebiz Laboratories Pty Limited 1,194 44,862 7,898 9,086
Others 650 764 447 72
Total 1,844 46,428 8,358 9,198
Total remuneration due to key managers amounted to approximately Euro 24.4 million and Euro 43.2 million
in 2013 and 2012, respectively.
30. EARNINGS PER SHARE
Basic and diluted earnings per share were calculated as the ratio of net income attributable to the stockholders
of the Company for 2013 and 2012 amounting to Euro 544.7 million and Euro 534.4 million, respectively, to the
number of outstanding shares—basic and dilutive of the Company.