LensCrafters 2015 Annual Report Download - page 125

Notes to the consolidated financial statement as of December 31, 2015 Page 31 di 68
As of December 31, 2015, the amount of overdue receivables which were not included in the bad debt fund was equal to 9.9%
of gross receivables (8.0% as of December 31, 2014) and 10.3% of receivables net of the bad debt fund (8.4% as of
December 31, 2014). The Group does not expect any additional losses over amounts already provided for.
8. INVENTORIES
Inventories are comprised of the following items (amounts in thousands of Euro):
As of December 31
(In thousands of Euro) 2015
2014
Raw materials 200,336 186,593
Work in process 51,828 47,674
Finished goods 711,009 627,300
Less: inventory obsolescence reserves (129,901)
(133,163)
Total 833,272
728,404
The increase in inventories in 2015 (Euro 104.9 million) was aimed at improving the quality of the customer experience by
having inventory levels in line with customer demand.
The movements in the allowance for inventories reserve are as follows:
(in thousands of Euro)
Balance at
beginning of
period
Provision Utilization Other(1)
Balance at
end of
period
2014 119,263 80,142 (69,284) 3,042 133,163
2015 133,163 65,077 (67,834) (505) 129,901
(1) Other includes translation differences for the period.
9. OTHER ASSETS
Other assets comprise the following items:
As of December 31
(in thousands of Euro) 2015
2014
Sales taxes receivable 38,016 40,494
Prepaid expenses 1,458 1,915
Other assets 55,896 48,479
Total financial assets 95,370 90,888
Income tax receivables 70,038 50,356
Advances to suppliers 15,070 14,343
Prepaid expenses 72,985 44,771
Other assets 19,468 31,039
Total non-financial assets 177,561
140,509
Total other assets 272,932
231,397
The increase in Income tax receivables is mainly related to the increase in Group US subsidiaries’ direct tax receivables (Eur
18.1 million).
The increase in prepaid expense is mainly relate to: (i) prepaid rents for North America retail operations (Eur 10.1 million); (ii)
marketing expenses related to the 2016 Olympics (Eur 2.5 million).