LensCrafters 2015 Annual Report Download - page 153

Notes to the consolidated financial statement as of December 31, 2015 Page 59 di 68
ongoing. In May 2015, the Company received a Statement of Objections from the FCA. This document contains the FCA’s
preliminary position on alleged anti-competitive practices and it does not prejudice its final decision.
In August 2015, the Company filed detailed responses to the Statement of Objections. Luxottica will vigorously defend itself
against the FCA’s allegations. In early 2016, the FCA requested additional information, as is typical in this type of proceeding.
No provision has been booked by the Group as this matter is at a stage which makes it not possible to assess the probability and
range of potential liability. This assessment is based in part on the fact that the FCA’s positions on significant issues are
uncertain, including the duration of the alleged violations, the brands and sales channels involved and the applicability of
mitigating or aggravating circumstances that are considered as part of the FCA’s process for assessing any fines. If the FCA
concludes that there was a violation, it will impose a fine, which may be contested in court. Such fine, assuming it was upheld
by the court, could have a material effect on the Company’s results of operations and financial condition. Considering the
ongoing complex proceeding, it is difficult to predict the timing of any action by the FCA, including the conclusion of the
proceeding and the imposition of any fine, which could occur at some point in 2016 or beyond.
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 the aggregate, will not have a material
adverse effect on the Company’s consolidated financial position or results of operations.
29. RELATED PARTY TRANSACTIONS
License 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 Claudio Del Vecchio, a son of the
Company’s Executive Chairman and majority stockholder. The license expires on December 31, 2019. Royalties paid under
this agreement to BBG were Euro 0.9 million in 2015 and Euro 0.8 million in 2014. Management believes that the terms of the
license agreement are fair to the Company.
Lease of the Office Building in Milan
On April 29, 2014, the Board of Directors of Luxottica Group authorized the Company to enter into an agreement to lease a
building located in Piazzale Cadorna 3, Milan, Italy. The lease is for a period of seven years and five months and may be
renewed for an additional six years. The building is owned by Beni Stabili SIIQ S.p.A., which is a related party of Delfin S.à
r.l., an entity that is controlled by the Company’s Executive Chairman, Leonardo Del Vecchio. In accordance with the
procedure on related parties adopted by the Company and CONSOB regulation no. 17221/2010 and in light of the lease value,
the agreement qualifies as a minor transaction with related parties. On March 31, 2014, the Risk and Control Committee, which
is composed solely of independent directors, unanimously expressed a favorable opinion regarding the Company’s interest in