Annual Review 2012 - Luxottica
Annual Review 2012 - Luxottica
Annual Review 2012 - Luxottica
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154 |<br />
ANNUAL REPORT <strong>2012</strong><br />
Our net financial position with respect to related parties is not material.<br />
Long-term debt includes finance leases liabilities for Euro 29.2 million (Euro 27.0 million as<br />
of December 31, <strong>2012</strong>).<br />
(thousands of Euro) <strong>2012</strong> 2011<br />
Gross finance lease liabilities:<br />
- no later than 1 year 5,098 4,612<br />
- later than 1 year and no later than 5 years 15,771 12,638<br />
- later than 5 years 13,845 14,338<br />
Total 34,714 31,588<br />
Future finance charges on finance lease liabilities 5,472 4,634<br />
Present values of finance lease liabilities 29,242 26,954<br />
The present value of finance lease liabilities is as follows:<br />
(thousands of Euro) <strong>2012</strong> 2011<br />
- no later than 1 year 3,546 3,556<br />
- later than 1 year and no later than 5 years 12,703 10,506<br />
- later than 5 years 12,993 12,892<br />
Total 29,242 26,954<br />
22. EMPLOYEE<br />
BENEFITS<br />
Employee benefits amounted to Euro 191.7 million (Euro 197.7 million as of December<br />
31, 2011). The balance mainly includes liabilities for termination indemnities of Euro 49.3<br />
million (Euro 45.3 million as of December 31, 2011), and liabilities for employee benefits of<br />
the US subsidiaries of the Group of Euro 142.4 million (Euro 152.4 million as of December<br />
31, 2011).<br />
Liabilities for termination indemnities mainly include post-employment benefits of the<br />
Italian companies’ employees (hereinafter “TFR”), which at December 31, <strong>2012</strong> amounted<br />
to Euro 39.7 million (Euro 36.3 million as of December 31, 2011).<br />
Effective January 1, 2007, the TFR system was reformed, and under the new law,<br />
employees are given the ability to choose where the TFR compensation is invested,<br />
whereas such compensation otherwise would be directed to the National Social Security<br />
Institute or Pension Funds. As a result, contributions under the reformed TFR system<br />
are accounted for as a defined contribution plan. The liability accrued until December<br />
31, 2006 continues to be considered a defined benefit plan. Therefore, each year, the<br />
Group adjusts its accrual based upon headcount and inflation, excluding changes in<br />
compensation level.
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