Annual Review 2012 - Luxottica

Consolidated financial statements - NOTES
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a significant effect on the amounts reported. A 1.0 percent increase or decrease in the
health care trend rate would not have a material impact on the consolidated financial
statements. The weighted average discount rate used in determining the accumulated
post-retirement benefit obligation was 4.3 percent at December 31, 2012 and 5.1 percent
at December 31, 2011.
The weighted average discount rate used in determining the net periodic benefit cost for
2012 and 2011 was 5.1 percent and 5.5 percent, respectively.
The balance is detailed below:
23. Long-term
PROVISIONS FOR
RISKs AND OTHER
CHARGES
(thousands of Euro) Legal risk Self- insurance Tax provision Other risks Total
Balance as of December 31, 2011 8,598 23,763 36,397 11,643 80,400
Increases 2,824 7,129 12,089 2,015 24,057
Decreases (2,812) (6,323) (5,128) (1,196) (15,460)
Business Combinations - - 17,541 17,234 34,775
Translation difference and other movements 132 (520) 8 (3,781) (4,161)
Balance as of December 31, 2012 8,741 24,049 60,907 25,915 119,612
Other risks include (i) accruals for risks related to sales agents of certain Italian companies
of Euro 6.7 million (Euro 7.1 million as of December 31, 2011) and (ii) accruals for
decommissioning costs of certain subsidiaries of the Group operating in the Retail
segment of Euro 2.8 million (Euro 2.4 million as of December 31, 2011).
Refer to note 19 for information pertaining to self-insurance provision.
The Tax and Other risk provisions related to Business Combinations refer to Tecnol (please
refer to note 4 “Business Combinations” for further details).
The balance of Other non-current liabilities was Euro 52.7 million and Euro 66.8 million as
of December 31, 2012 and 2011, respectively.
The balance mainly include Other liabilities of the retail North American operations of
Euro 40.6 million and 49.1 million as of December 31, 2012 and 2011, respectively.
24. OTHER
NON-CURRENT
LIABILITIES