Adidas 1997 Annual Report Download - page 41

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39
5. Receivables and Receivables, net of allowances for doubtful accounts, and other current assets consist of the
other current assets following:
(in DM 000) Dec. 31, 1997 Dec. 31, 1996
Trade accounts receivable, gross 960,349 713,167
less: allowance for doubtful accounts 72,093 62,620
Trade accounts receivable, net 888,256 650,547
Receivables from unconsolidated affiliates 5,020 93
Prepaid and other current assets 253,177 142,990
Cash deposits 11,251 24,177
1,157,704 817,807
Prepaid and other current assets are essentially comprised of refundable taxes, prepaid expenses
mainly for promotion agreements, as well as premiums for interest and currency options. Cash
deposits refer to adidas Korea.
6. Property and Property and equipment consist of the following:
equipment, net
(in DM 000) Dec. 31, 1997 Dec. 31, 1996
Land, land rights and buildings 241,312 228,574
Technical equipment and machinery 67,598 58,672
Other equipment, furniture and fittings 285,575 223,050
594,485 510,296
less: allowances for depreciation 325,540 276,825
268,945 233,471
Construction in progress, net 5,640 7,620
274,585 241,091
A reconciliation of the carrying amounts of property and equipment is shown in attachment II to
these notes. Depreciation expenses were DM 60 million, DM 45 million and DM 36 million for the
years ended December 31, 1997, 1996 and 1995, respectively.
adidas-Salomon AG and Subsidiaries
Notes to Consolidated Financial Statements