LensCrafters 2015 Annual Report Download - page 119

Notes to the consolidated financial statement as of December 31, 2015 Page 25 di 68
market activity for the asset or liability.
In order to select the appropriate valuation techniques to utilize, the Group uses the above valuation hierarchy.
As of December 31, 2014, the Group did not have any Level 3 fair value measurements.
The Group determined the fair value of the derivatives existing on December 31, 2015 through valuation techniques which are
commonly used for instruments similar to those traded by the Group. The models applied to value the instruments are based on
a calculation obtained from the Bloomberg information service. The input data used in these models are based on observable
market prices (the Euro and USD interest rate curves as well as official exchange rates on the date of valuation) obtained
from Bloomberg.
The following table summarizes the financial assets and liabilities of the Group valued at fair value (in thousands of Euro):
(In thousands of Euro)
Fair Value Measurements at
Reporting Date Using
Description Classification December 31,
2015
Level 1 Level 2 Level 3
Foreign Exchange Contracts Other current assets 2,055 — 2,055 —
Assets held for sale Other current assets 19,289 — — 19,289
(*)
Foreign Exchange Contracts Other current liabilities 2,173 — 2,173 —
(*) Assets held for sale include the aircraft owned by the Group and sold during January 2016. The fair value was determined based on the
selling price agreed upon by the parties.
(In thousands of Euro)
Fair Value Measurements at
Reporting Date Using
Description Classification December 31,
2014
Level 1 Level 2 Level 3
Foreign Exchange Contracts Other current assets 1,008 — 1,008 —
Foreign Exchange Contracts Other current liabilities 4,376 — 4,376 —
The Group maintains policies and procedures with the aim of valuing the fair value of assets and liabilities using valuation
techniques based on observable market data.
The Group portfolio of foreign exchange derivatives includes only forward foreign exchange contracts on the most traded
currency pairs with maturity less than one year. The fair value of the portfolio is valued using internal models that use
observable market inputs including Yield Curves and Spot and Forward prices.
4. BUSINESS COMBINATIONS
On April 16, 2015 the Group acquired the remaining 49% of Luxottica Netherlands for a total purchase price of Euro 19.0
million. The difference between the consideration paid and the net assets acquired, equal to Euro 15.4 million, was recorded as
a reduction of the Group’s stockholders’ equity.
On November 1, 2015, Sunglass Hut acquired certain assets from Sunglass Warehouse, Inc. (“SGW”). Management
determined the transaction was a business combination in accordance with IFRS 3. The final purchase price paid by Sunglass
Hut was approximatly USD 23.3 million (Euro 21.0 million). The difference between the consideration paid and the net assets