Annual Review 2012 - Luxottica

Consolidated financial statements - NOTES
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The Group has recorded an expense for the ordinary stock option plans of Euro 10.8
million and Euro 9.7 million in 2012 and 2011, respectively. For the 2009, 2010, 2011 and
2012 PSP plans, the Group recorded an expense of Euro 30.5 million and Euro 28.3 million
in 2012 and 2011, respectively. No expense on the 2008 PSP was recorded in 2010, 2009
and 2008, since the consolidated EPS targets were not met.
The stock plans outstanding as of December 31, 2012 are conditional upon satisfying the
service conditions. The 2004 and 2009 performance plans as well as all the PSP plans are
conditional upon satisfying service as well as performance conditions.
During 2012, the Company distributed an aggregate dividend to its stockholders of
Euro 227.4 million equal to Euro 0.49 per ordinary share. Dividends distributed to noncontrolling
interests totaled Euro 2.3 million. During 2011, the Company distributed
an aggregate dividend to its stockholders of Euro 202.5 million equal to Euro 0.44 per
ordinary share. Dividends distributed to non-controlling interests totaled Euro 2.0 million.
35. DIVIDENDS
The Group’s objectives when managing capital are to safeguard the Group’s ability to
continue, as a going concern, to provide returns to shareholders and benefit to other
stockholders, and to maintain an optimal capital structure to reduce the cost of capital.
36. CAPITAL
MANAGEMENT
Consistent with others in the industry the Group monitors capital also on the basis of
the gearing ratio which is calculated as net financial position divided by total capital.
Net financial position is calculated as total borrowings (including short-term borrowings,
current and non-current portion of long-term debt) less cash and cash equivalents.
Total capital is calculated as equity, as shown in the consolidated statement of financial
position, plus net financial position.
(millions of Euro) 2012 2011
Total borrowings (note 21) 2,452.5 2,936.7
less cash and cash equivalents (790.1) (905.1)
Net Debt 1,662.4 2,031.6
Total Equity 3,993.2 3,625.1
Capital 5,655.6 5,656.7
Gearing ratio 29.3% 35.9%