|
|
 | | | |
- close
- close
- close
- close
| |||||||||
This excerpt taken from the LUX 20-F filed Jun 25, 2009. Translation Risk. A substantial portion of
revenues and costs are denominated in various currencies other than Euro. The
following table provides information about our revenues and costs denominated
in various currencies for the years ended December 31, 2008 and 2007, and is
not meant to be a tabular disclosure of market risk:
Because a large portion of our revenues and expenses are denominated in U.S. dollars, fluctuations in the exchange rate between the U.S. dollar and the Euro, our reporting currency, could have a material effect on our reported financial position and results of operations. The effect of a ten percent weakening of the U.S.$ against the Euro as compared to the actual 2008 and 2007 average exchange rate between the U.S.$ and Euro would have been a decrease in income before taxes of Euro 36 million and of Euro 67 million, respectively. In addition, a significant change in the mix of revenues or expenses between or among geographic or operating segments could increase or decrease our exposure to other currency exchange rate fluctuations. We will continue to monitor our exposure to exchange rate fluctuations and enter into hedging arrangements if and to the extent we believe it to be appropriate.
The acquisitions of OPSM in 2003, Cole in 2004 and Oakley in 2007 have further increased our exposure to fluctuations in currency exchange rates. The majority of the operations, assets and liabilities of Cole and Oakley are denominated in U.S. dollars, while, for OPSM and a part of the Oakley business, the operations, assets and liabilities are mostly denominated in Australian dollars.
This excerpt taken from the LUX 6-K filed May 12, 2009. Translation risk is defined as the effects of changes in
foreign currency rates on the consolidated income statement and balance sheet
of the Group. As the foreign Group Companies’ income statement and balance
sheets are translated into the Group functional currency using market foreign
currency rates, the values of the Group’s consolidated net income, assets, debt
and equity change. In addition to the absolute amounts, also the balance sheet
ratios like gearing and equity ratio may change, if the proportion of net
income, assets, equity, debt and equity in the various currencies differ.
Competitive risk refers to the Group’s foreign currency rate sensitivity in comparison to its competitors, i.e. to the long term effects of currency rate changes to the economic position of the Group in any affected market.
43
This excerpt taken from the LUX 20-F filed Jun 26, 2008. Translation Risk. A
substantial portion of revenues and costs are denominated in various currencies
other than Euro. The following table provides information about our revenues
and costs denominated in various currencies for the years ended December 31,
2007 and 2006 and is not meant to be a tabular disclosure of market risk:
Because a large portion of our revenues and expenses are denominated in U.S. dollars, fluctuations in the exchange rate between the U.S. dollar and the Euro, our reporting currency, could have a material effect on our reported financial position and results of operations. The effect of a ten percent weakening of the U.S.$ against the Euro as compared to the actual 2007 and 2006 average exchange rate between the U.S.$ and Euro would have been a decrease in income before taxes of Euro 66.7 million and of Euro 63.2 million, respectively. In addition, a significant change in the mix of revenues or expenses between or among geographic or operating segments could increase or decrease our exposure to other currency exchange rate fluctuations. We will continue to monitor our exposure to exchange rate fluctuations and enter into hedging arrangements if and to the extent we believe it to be appropriate.
The acquisitions of OPSM in 2003, Cole in 2004 and Oakley in 2007 have further increased our exposure to fluctuations in currency exchange rates. The majority of the operations, assets and liabilities of Cole and Oakley are
87
denominated in U.S. dollars, while, for OPSM and a part of the Oakley business, the operations, assets and liabilities are mostly denominated in Australian dollars.
This excerpt taken from the LUX 20-F filed Jun 28, 2006. Translation
Risk: A substantial portion of revenues and costs are
denominated in various currencies other than Euro. The following table provides
information about our revenues and costs denominated in various currencies for
the year ended December 31, 2005 and is not meant to be a tabular
disclosure of market risk:
89
Because a large portion of our revenues and expenses are denominated in U.S. dollars, fluctuations in the exchange rate between the U.S. dollar and the Euro, our reporting currency, could have a material effect on our reported financial position and results of operations. The effect of a 10 percent weakening of the U.S.$ against the Euro as compared to the actual 2005 average exchange rate between the U.S.$ and Euro would have been a decrease in income before taxes of Euro 47.8 million. In addition, a significant change in the mix of revenues or expenses between or among geographic or operating segments could increase or decrease our exposure to other currency exchange rate fluctuations. We will continue to monitor our exposure to exchange rate fluctuations and enter into hedging arrangements if and to the extent we believe it to be appropriate. The acquisitions of Sunglass Hut in 2001, OPSM in 2003 and Cole in 2004 have further increased our exposure to fluctuations in currency exchange rates. The majority of the operations, assets and liabilities of Sunglass Hut and Cole are denominated in U.S. dollars while for OPSM the operations, assets and liabilities are mostly denominated in Australian dollars. 90
| EXCERPTS ON THIS PAGE:
|
| |||||||
