Annual Review 2012 - Luxottica

Consolidated financial statements - NOTES
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Changes in goodwill and intangible assets as of December 31, 2011 and 2012 were as
follows:
11. GOODWILL AND
INTANGIBLE ASSETS
(thousands of Euro)
Goodwill
Trade
names and
trademarks
Distribution
network
Customer
relations,
contracts
and lists
Franchise
agreements Other Total
Historical cost 2,890,397 1,423,092 86,389 225,364 21,479 321.627 5.031.334
Accumulated amortization - (545,896) (23,098) (51,967) (6,180) (162.877) (853.004)
Total as of January 1, 2011 2,890,397 877,196 63,290 173,397 15,299 158,750 4,178,330
Increases - - - - - 107,646 107,646
Decreases - - - - - (710) (710)
Business combinations 128,808 26,014 - - - 9,451 164,273
Translation difference and other 71,358 86,506 (63,232) 1,903 422 22.927 119,885
Amortization expense and impairments - (74,666) (41) (14,093) (1,031) (38,108) (127,939)
Balance as of December 31, 2011 3,090,563 915,050 17 161,208 14,690 259,956 4,441,484
Historical cost 3,090,563 1,576,008 287 229,733 22,181 464,712 5,383,484
Accumulated amortization - (660,958) (270) (68,526) (7,491) (204,756) (942,001)
Total as of December 31, 2011 3,090,563 915,050 17 161,208 14,690 259,956 4,441,484
Increases - 187 - - - 116,819 117,005
Decreases - - - - - (3,751) (3,751)
Acquisitions 107,123 12,057 - 21,806 - 11,146 152,132
Translation difference and other (48,916) (6,572) 1 (3,370) (255) (8,004) (67,117)
Amortization expense and impairments - (70,882) (18) (15,468) (1,117) (57,813) (145,298)
Balance as of December 31, 2012 3,148,770 849,839 - 164,177 13,319 318,352 4,494,457
Historical cost 3,148,770 1,563,447 288 247,730 21,752 546,966 5,528,953
Accumulated amortization - (713,608) (288) (83,553) (8,433) (228,614) (1,034,496)
Total as of December 31, 2012 3,148,770 849,839 - 164,177 13,319 318,352 4,494,457
The 2012 increase in goodwill and intangible assets due to business combinations is
mainly due to the acquisition of Tecnol (Euro 127.1 million) and Sun Planet (Euro 21.9
million). The increase in goodwill and intangible assets due to business combinations is
mainly due to the acquisition of MOI. Please refer to note 4 “Business Combinations”
for further details.
Of the total amortization expense of Euro 145.3 million (Euro 127.9 million in 2011),
Euro132.8 million (Euro 124.7 million in 2011) is included in general and administrative
expenses and Euro 6.2 million (Euro 3.2 million in 2011) is included in cost of sales.