LensCrafters 2013 Annual Report Download - page 201

Footnotes to the statutory financial statements as of December 31, 2013 Page 34 of 71
CURRENT LIABILITIES
15. CURRENT PORTION OF LONG-TERM DEBT
Balance at 12/31/2013 Balance at 12/31/2012
324,079,228 92,905,093
Current debt mostly comprises Euro 298,478,528 for the current portion of bank loans and Euro 24,078,305 for the
current portion of the liability to Luxottica Leasing S.r.l. under the finance lease for the OPSM trademarks.
The current portion of long-term debt reported at the end of the previous year has been settled in full, with Euro
70,000,000 repaid to banks and Euro 22,904,983 repaid to Luxottica Leasing.
16. PROVISIONS FOR RISK
Balance at 12/31/2013 Balance at 12/31/2012
4,468,246 11,325,338
The balance consists of:
Description 12/31/2012 Increases Decreases 12/31/2013
Risk provision – client returns 5,974,319 (5,942,417) 31,902
Provision for future licensing
obligations 5,335,769 (927,426) 4,408,343
Other short term risk provisions 15,250 23,250 (10,500) 28,000
Total 11,325,338 23,250 (6,880,342) 4,468,246
The "Customer returns provision" reflects the amount set aside to cover the potential impact of possible returns by
franchise customers and affiliates. This risk is no longer present because the transactions to which it referred have
been reduced.
The "Provision for future licensing obligations" consists of advertising costs that the Company will incur in future
years under existing contractual obligations.