LensCrafters 2015 Annual Report Download - page 17

Management Report as of December 31, 2015 Page 13 of 35
customer demand; (iii) increase in other assets (Euro 41.5 million) mainly due to tax receivables and prepaid expenses.
In 2015, non-current assets increased by Euro 393.4 million, due to increases in property, plant and equipment of
Euro 117.9 million, increases in intangible assets (including goodwill) of Euro 303.4 million. Those effects are partially
offset by the following: (i) decrease in other assets (Euro 18,3 million) mainly due to royalties advanced payments; (ii)
decrease in deferred tax assets (Euro 13.8 million) to be analyzed jointly with deferred tax liabilities. The net amount of
deferred tax liabilities increased by Euro 24 million mainly due to the positive effects of foreign currency fluctuations.
The increase in property, plant and equipment was due to additions that occurred in 2015 of Euro 362.4 million, to the
positive currency fluctuation effects of Euro 47.8 million, acquisitions of Euro 0.8 million, and which were partially offset
by depreciation and disposals for the period of Euro 273.5 million and Euro 19.7 million, respectively.
The increase in intangible assets was due to additions for the period of Euro 151.6 million, to the positive effects of foreign
currency fluctuations of Euro 338.9 million, acquisitions that occurred in the period for Euro 19.5 million and which were
partially offset by amortization of the period for Euro 203.4 million.
The increase in total liabilities of Euro 54.9 as of December 31, 2015 compared to prior period was due to an increase in
equity of Euro 488,9 million and an increase in non-current liabilities of Euro 47.8 million partially offset by a decrease in
current liabilities of Euro 481.8 million.
The decrease in current liabilities was mainly due to: (i) a decrease in financial liabilities (Euro 622.8 million) as described
in the following paragraph; (ii) a decrease in short-term provision for risks and other charges of Euro 68,9 million mainly
due to the payment made by Luxottica S.r.l. and related to a tax audit for fiscal years 2008 through 2011; (iii) an increase in
trade payables (Euro 182,9 million) mainly due to the growth of the business and to the strengthening of the foreign
currencies in which the Group operates compared to the Euro; and (iv) an increase in other liabilities (Euro 35.4 million)
mainly due to wages and salaries.
The increase in non-current liabilities was mainly due to an increase in long-term debt (Euro 26.7 million) as noted in the
following paragraph.
Our net financial position as of December 31, 2015 and December 31, 2014 was as follows:
As of December
(in thousands of Euro) 2015
2014
Cash and cash equivalents 864,852 1,453,587
Bank overdrafts (110,450) (151,303)
Current portion of long-term debt (44,882) (626,788)
Long-term debt (1,715,104)
(1,688,415)
Total net debt (1,005,584) (1,012,918)
Bank overdrafts consist of the utilized portion of short-term uncommitted revolving credit lines borrowed by various
subsidiaries of the Group.
As of December 31, 2015, Luxottica together with our wholly-owned Italian subsidiaries, had credit lines aggregating
Euro 194.8 million. The interest rate is a floating rate of EURIBOR plus a margin on average of approximately 100 basis
points. As of December 31, 2015 these credit lines was not utilized.
As of December 31, 2015, our wholly-owned subsidiary Luxottica U.S. Holdings Corp. maintained unsecured lines of credit