Annual Review 2012 - Luxottica

Consolidated financial statements - NOTES
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As of December 31, 2012, the amount of overdue receivables which were not included
in the bad debt fund was equal to 11 percent of gross receivables (9.7 percent as of
December 31, 2011) and 11.6 percent of receivables net of the bad debt fund (10.2 percent
as of December 31, 2011). The Group does not expect any additional losses over amounts
already provided for.
Inventories are comprised of the following items:
8. INVENTORIES
As of December 31
(thousands of Euro) 2012 2011
Raw materials 154,403 128,909
Work in process 59,565 49,018
Finished goods 625,386 562,141
Less: inventory obsolescence reserves (110,588) (90,562)
Total 728,767 649,506
The movements in the allowance for inventories reserve is as follows:
(thousands of Euro)
Balance
at beginning
of period Provision Other (*) Utilization
Balance
at end
of period
2011 96,552 45,776 13,187 (64,953) 90,562
2012 90,562 67,894 (3,930) (43,938) 110,588
(*) Other includes translation differences for the period.
Other assets comprise the following items:
9. OTHER ASSETS
As of December 31
(thousands of Euro) 2012 2011
Sales taxes receivable 15,476 18,785
Short-term borrowings 835 1,186
Prepaid expenses 2,569 1,573
Other assets 35,545 38,429
Total financial assets 54,425 59,973
Income tax receivable 47,354 59,795
Advances to suppliers 15,034 12,110
Prepaid expenses 74,262 69,226
Other assets 18,175 29,746
Total other assets 154,825 170,877
Total other current assets 209,250 230,850