Annual Review 2012 - Luxottica

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ANNUAL REPORT 2012
The carrying value of financial assets approximates their fair value and this value also
corresponds to the Group’s maximum exposure to credit risk. The Group does not have
guarantees or other instruments for managing credit risk.
Other assets primarily include advance payments made to certain licensees for future
contractual minimum royalties totaling Euro 73.8 million (Euro 88.3 million as of December
31, 2011).
14. DEFERRED
TAX ASSETS AND
DEFERRED TAX
LIABILITIES
The balance of deferred tax assets and liabilities as of December 31, 2012, December 31,
2011 and January 1, 2011 is as follows:
As of December 31
(thousands of Euro) 2012 2011
As of January 1,
2011
Deferred tax assets 169,662 153,701 136,620
Deferred tax liabilities 227,806 232,337 202,169
Deferred tax liabilities (net) 58,144 78,636 65,549
The balance of deferred tax assets and liabilities as of January 1, 2011, before the offsetting
of balances within the same tax jurisdiction, discussed in note 1 of these footnotes to
the consolidated financial statements, was Euro 364.3 million and Euro 429.8 million,
respectively.
The analysis of deferred tax assets and deferred tax liabilities without taking into
consideration the offsetting of balances within the same tax jurisdiction, is as follows:
As of December 31
(thousands of Euro) 2012 2011
Deferred tax assets
Deferred tax assets to be recovered after more than 12 months 187,602 176,428
Deferred tax assets to be recovered within 12 months 212,561 201,311
Total 400,163 377,739
Deferred tax liabilities
Deferred tax liabilities to be recovered after more than 12 months 18,129 15,844
Deferred tax liabilities to be recovered within 12 months 440,178 440,531
Total 458,307 456,375
Deferred tax liabilities (net) 58,144 78,636