Annual Review 2012 - Luxottica

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ANNUAL REPORT 2012
NON-CURRENT
LIABILITIES
21. LONG-TERM
DEBT
Long-term debt was Euro 2,362 million and Euro 2,743 million as of December 31, 2012
and 2011.
The roll-forward of long-term debt as of December 31, 2012 and 2011 is as follows:
(thousands of Euro)
Luxottica
Group S.p.A.
credit
agreement
with various
financial
institutions
Senior
unsecured
guaranteed
notes
Credit
agreement
with various
financial
institutions
Credit
agreement
with various
financial
institutions
for Oakley
acquisition
Other loans
with banks and
other third
parties, interest
at various
rates, payable
in installments
through 2014
Total
Balance as of January 1, 2012 487,363 1,226,245 225,955 772,743 30,571 2,742,876
Proceeds from new and existing loans 500,000 - - 33,133 533,133
Repayments (120,000) - (181,149) (607,247) (38,159) (946,555)
Loans assumed in business combinations - - - - 30,466 30,466
Amortization of fees and interests 380 9,104 484 16 (4,312) 5,672
Foreign translation difference - (12,124) 374 9,411 (1,075) (3,415)
Balance as of December 31, 2012 367,743 1,723,225 45,664 174,922 50,624 2,362,178
(thousands of Euro)
Luxottica
Group S.p.A.
credit
agreement
with various
financial
institutions
Senior
unsecured
guaranteed
notes
Credit
agreement
with various
financial
institutions
Credit
agreement
with various
financial
institutions
for Oakley
acquisition
Other loans
with banks and
other third
parties, interest
at various
rates, payable
in installments
through 2014
Total
Balance as of January 1, 2011 545,552 943,112 242,236 897,484 4,252 2,632,636
Proceeds from new and existing loans - 251,445 - - 23,131 274,576
Repayments (60,000) - (22,881) (143,683) (3,882) (230,447)
Loans assumed in business combinations - - - - 5,146 5,146
Amortization of fees and interests 1,811 1,317 387 459 - 3,975
Foreign translation difference - 30,371 6,213 18,483 1,923 56,989
Balance as of December 31, 2011 487,363 1,226,245 225,955 772,743 30,571 2,742,878
The Group uses debt financing to raise financial resources for long-term business
operations and to finance acquisitions. During 2004 the Group financed the Cole National
Corporation acquisition and in 2007 the Oakley acquisition through debt financing. The
Group continues to seek debt refinancing at favorable market rates and actively monitors
the debt capital markets in order to take appropriate action to issue debt, when appropriate.
Our debt agreements contain certain covenants, including covenants that limit our ability
to incur additional indebtedness (for more details see note 3(f) - Default risk: negative
pledges and financial covenants). As of December 31, 2012 we were in compliance with
these financial covenants.