Annual Review 2012 - Luxottica

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ANNUAL REPORT 2012
The table below shows movements in the stockholders’ equity due to the reserve for cash
flow hedges (amounts in thousands of Euro):
Balance as of January 1, 2011 (35,132)
Fair value adjustment of derivatives designated as cash flow hedges (4,678)
Tax effect on fair value adjustment of derivatives designated as cash flow hedges 1,856
Amounts reclassified to the consolidated statement of income 37,228
Tax effect on amounts reclassified to the consolidated statement of income (13,292)
Balance as of December 31, 2011 (14,018)
Fair value adjustment of derivatives designated as cash flow hedges 3,163
Tax effect on fair value adjustment of derivatives designated as cash flow hedges (2,512)
Amounts reclassified to the consolidated statement of income 17,044
Tax effect on amounts reclassified to the consolidated statement of income (3,995)
Balance as of December 31, 2012 (318)
Interest rate swaps
The aggregate notional amount of the existing interest rate swap instruments effective as
of December 31, 2012 is Euro 70 million.
33. NON-RECURRING
TRANSACTIONS
On January 24, 2012 the Board of Directors of Luxottica approved the reorganization of
the retail business in Australia. As a result of this reorganization the Group has closed
approximately 10 percent of its Australian and New Zealand stores, redirecting resources
into its market leading OPSM brand. As a result of the reorganization, the Group incurred
non-recurring expenses of approximately Euro 21.7 million. The Group also recorded a
non-recurring tax benefit of Euro 6.5 million related to the reorganization of the retail
business in Australia and a non-recurring tax expense of Euro 10 million related to tax audit
on Luxottica S.r.l. on fiscal year 2007.
In 2011 the Group recognized non-recurring gain of Euro 19.0 million related to the
acquisition of the original 40 percent shareholding in Multiopticas Internacionales, a nonrecurring
charge of Euro 12.0 million related to the celebration of the 50 th anniversary of
Luxottica Group S.p.A., a non-recurring charge of Euro 11.2 million related to start up and
restructuring costs of the North America division and non-recurring expense of Euro 9.6
million related to the reorganization of the retail business in Australia. The tax benefits
related to the above non-recurring income and expenses was Euro 10.5 million.