The Benetton Group Annual Report 1996

The following tables summarize the significant adjustments to consolidated net income and
stockholders' equity which would be required if accounting principles generally accepted in the US had
been applied instead of those established or adopted by the Italian Accounting Profession.
Net income:
(Millions of Lire)(1)
(Thousands
of US $) (1) (2)
1994 1995 1996 1996
Net income as reported in the consolidated
statements of income 210,220 220,255 245,642 161,713
Items increasing (decreasing) reported income:
Reduction in depreciation and amortization of
fixed assets and trademarks as a consequence of
the elimination of revaluation, including impact
of disposals
Adjustment related to acquisitions and
dispositions of companies under common control
5,160
13,695
475
9,435
476
10,502
Amortization of goodwill (1,052) (1,989) (733) (483)
Adjustment of deferred charges 2,831 2,831 2,831 1,864
M.t.m. gain deriving from adjustment to conform
anticipatory hedging transactions to SFAS 52
-
13,643
Accounting for deferred income tax 1,492 2,605 29,281 19,276
Tax effect of reconciling adjustments (5,376) (8,774) (3,045) (2,004)
Net income before cumulative effect of change
in accounting for premiums on capital hedging
Cumulative effect of change in accounting for
premiums on capital hedging
Net income in accordance with accounting
principles generally accepted in the US
Income per share before cumulative effect
of accounting change
Cumulative effect of change in accounting for
premiums on capital hedging
Net income per share amounts in accordance
with accounting principles generally accepted in
the US
(1) Except per share data, which are in Lire and US $.
226,970
9,200
236,170
(2) Exchange rate: US $ 1 = Lire 1,519 as of December 31, 1996.
1,307
53
1,360
238,481
-
238,481
1,366
-
1,366
2,981
287,935
-
287,935
1,650
-
1,650
313
6,914
1,963
189,556
-
189,556
1.09
-
1.09