Adidas 2000 Annual Report Download - page 105

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adidas-Salomon ANNUAL REPORT 2000
101
Glossary
Emerging Markets of newly industrialized countries,
markets such as in Southeast Asia, Latin America
and Eastern Europe.
Equity ratio Shows the role of shareholders’ equity
within the financing structure of the Com-
pany. It is calculated by dividing share-
holders’ equity by total assets.
Fair value Amount at which assets would be traded
fairly between business partners. Fair value
is often identical to market price.
Financial This ratio reflects the role of borrowings
leverage within the financing structure of the Com-
pany. It is calculated by dividing net total
borrowings by shareholders’ equity.
Forward Agreement to exchange amounts of one
contract currency for another currency at an agreed
fixed rate at a future date.
Goodwill The majority of adidas-Salomon’s goodwill
resulted from the acquisition of the Salomon
group in 1997. Goodwill is the excess of the
acquisition cost over the Group’s interest in
the fair value of the identifiable assets and
liabilities acquired as at the date of the
exchange transaction.
Hardware For adidas, this includes bags, balls and
protective equipment. For Salomon, hard-
ware refers to skis, ski boots, snowboards,
bindings, inline skates, protective equip-
ment and bags. For TaylorMade-adidas
Golf, it includes golf clubs, bags, balls, etc.
Hedging A strategy used to minimize exposure to
changes in prices, interest rates or exchange
rates by means of derivative financial instru-
ments (options, swaps, forward contracts,
etc.).
Interest Indicates the ability of the Company to
coverage cover net interest expenses with income
before net interest and taxes. This ratio is
calculated by dividing income before net
interest and taxes by net interest.
International International Accounting Standards (IAS) are
Accounting established by the International Accounting
Standards Standards Committee (IASC), an indepen-
dent, international organization supported
by the professional accountancy bodies.
The objective is to achieve uniformity and
transparency in the accounting principles
that are used by businesses and other
organizations for financial reporting around
the world.