Adidas 1997 Annual Report Download - page 42

Download and view the complete annual report

Please find page 42 of the 1997 Adidas annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 63

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63

40
7. Goodwill and other Goodwill and other intangible assets consist of the following:
intangible assets
(in DM 000) Dec. 31, 1997 Dec. 31, 1996
Goodwill (net of accumulated amortization of
DM 54,064 and DM 34,664 at December 31,
1997 and 1996, respectively) 223,926 185,331
Trademarks and similar rights and licenses to
such rights (net of accumulated amortization of
DM 29,128 and DM 25,042 at December 31,
1997 and 1996, respectively) 10,884 8,838
234,810 194,169
Goodwill primarily relates to the Company’s acquisitions in the United States, Australia/New Zealand
and Netherlands/Belgium.
Goodwill and intangible asset amortization expense of DM 21 million, DM 20 million and
DM 17 million for the years ended December 31, 1997, 1996 and 1995, respectively, is included
in depreciation and amortization.
8. Investments and other Investments and other long-term assets consist of the following:
long-term assets
(in DM 000) Dec. 31, 1997 Dec. 31, 1996
Investments, carried at cost 943,819 2,580
Cash deposits 6,820 22,858
Long-term receivables and other long-term assets 6,847 5,018
957,486 30,456
Investments primarily relate to the purchase price of DM 942 million for the acquisition of the
Salomon Family Holding Company (now adidas Salomon France S.A.) (see notes 3 and 22).
Cash deposits with maturities exceeding 12 months refer to adidas Korea.
9. Borrowings and Short-term borrowings consist of bank borrowings and discounted trade bills, typically with
credit lines maturities of less than 12 months.
Of the total borrowings of DM 1,525 million, borrowings in the amount of DM 935 million were
incurred on the acquisition of adidas Salomon France S.A. (the former Sport Développement
S.C.A.) in December 1997.
As of December 31, 1997, principal borrowings were in DM (54%), USD (22%), FRF (6%),
ESP (5%) and GBP (3%).
Month-end weighted average interest rates on borrowings ranged from 4.8% to 5.6% and from
4.8% to 6.2% for the years ended December 31, 1997 and 1996, respectively.