Annual Review 2012 - Luxottica
Annual Review 2012 - Luxottica
Annual Review 2012 - Luxottica
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ANNUAL REPORT <strong>2012</strong><br />
Future minimum amounts to be paid for endorsement contracts and supplier purchase<br />
commitments at December 31, <strong>2012</strong> are as follows:<br />
Years ending December 31 (thousands of Euro)<br />
Endorsement<br />
contracts<br />
Supply<br />
commitments<br />
Other<br />
commitments<br />
2013 6,626 18,504 6,889<br />
2014 3,999 21,578 5,662<br />
2015 3,725 12,045 2,136<br />
2016 99 4,841 97<br />
2017 - 4.401 -<br />
Subsequent years - 16,889 -<br />
Total 14,449 78,258 14,784<br />
Guarantees<br />
The United States Shoe Corporation, a wholly owned subsidiary within the Group, has<br />
guaranteed the lease payments for five stores in the United Kingdom. These lease<br />
agreements have varying termination dates through June 30, 2017. At December 31, <strong>2012</strong>,<br />
the Group’s maximum liability amounted to Euro 2.6 million (Euro 3.3 million at December<br />
31, 2011).<br />
A wholly owned U.S. subsidiary guaranteed future minimum lease payments for lease<br />
agreements on certain stores. The lease agreements were signed directly by the franchisees<br />
as part of certain franchising agreements. Total minimum guaranteed payments under<br />
this guarantee were Euro 1.0 million (USD 1.3 million) at December 31, <strong>2012</strong> (Euro 1.4<br />
million at December 31, 2011). The commitments provided for by the guarantee arise if the<br />
franchisee cannot honor its financial commitments under the lease agreements. A liability<br />
has been accrued using an expected present value calculation. Such amount is immaterial<br />
to the consolidated financial statements as of December 31, <strong>2012</strong> and 2011.<br />
Litigation<br />
French Competition Authority Investigation<br />
Our French subsidiary <strong>Luxottica</strong> France S.a.s., together with other major competitors in<br />
the French eyewear industry, has been the subject of an anti-competition investigation<br />
conducted by the French Competition Authority relating to pricing practices in such<br />
industry. The investigation is ongoing, and, to date, no formal action has yet been<br />
taken by the French Competition Authority. As a consequence, it is not possible to<br />
estimate or provide a range of potential liability that may be involved in this matter. The<br />
outcome of any such action, which the Group intends to vigorously defend, is inherently<br />
uncertain, and there can be no assurance that such action, if adversely determined, will<br />
not have a material adverse effect on our business, results of operations and financial<br />
condition.