Adidas 1997 Annual Report Download - page 50

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48
The Company had unrecognized deferred tax assets from operating loss carryforwards of approxi-
mately DM 185 million and DM 284 million at December 31, 1997 and 1996, respectively. The
Company’s utilization of approximately DM 36 million of such deferred taxes is substantially limited,
primarily in the US due to a change in ownership of adidas AG in 1993. Furthermore there are
approximately DM 68 million deferred tax assets in the US which can be utilized within ten years.
The deferred tax assets from operating loss carryforwards of adidas-Salomon AG of approximately
DM 61 million at December 31, 1997 have an unlimited carryforward period.
17. Segmental information The Company operates predominantly in one industry segment, that being the design, wholesale
and marketing of athletic and active lifestyle products. Information about the Company’s operations
by geographic markets is presented below. Revenues are classified on the basis of the Company’s
geographic reporting structure and since 1997 in the geographic market in which the revenues from
third parties are realized; prior year figures were adjusted accordingly. Sales between geographic
regions are at cost plus a sourcing fee. Inter-geographic assets were eliminated to arrive at the
consolidated amounts.
(in DM 000) Europe America Asia/Pacific Latin America Total
Year ended December 31, 1997:
Total revenues 4,617,326 1,700,828 3,652,616 169,959 10,140,729
less: inter-geographic revenues (489,966) (1,440) (2,949,478) (1,568) (3,442,452)
Revenues from third parties 4,127,360 1,699,388 703,138 168,391 6,698,277
Total assets 3,040,922 796,040 352,030 105,268 4,294,260
Year ended December 31, 1996:
Total revenues 3,610,928 1,029,448 2,158,100 109,480 6,907,956
less: inter-geographic revenues (452,030) (3,452) (1,741,987) (1,055) (2,198,524)
Revenues from third parties 3,158,898 1,025,996 416,113 108,425 4,709,432
Total assets 1,599,750 417,806 353,578 84,413 2,455,547
Year ended December 31, 1995:
Total revenues 2,766,353 774,402 1,497,885 98,334 5,136,974
less: inter-geographic revenues (373,637) (7,109) (1,248,474) (7,514) (1,636,734)
Revenues from third parties 2,392,716 767,293 249,411 90,820 3,500,240
Total assets 1,242,558 325,302 152,894 56,569 1,777,323
Due to the Company’s internal structure, specifically where certain central activities are established
and cross-charges between geographic segments result, the information regarding segment results
is not meaningful and, therefore, is not included.