Adidas 2002 Annual Report Download - page 127

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125
4 /// ACQUISITIONS OF SUBSIDIARIES
Major acquisitions within the last two years are as follows:
Effective February 8, 2001 the Group took over the French skateboarding company Cé SARL
(renamed to Cliché S.A.S.), Lyon (France) for an amount of € 1 million.
Additionally, adidas-Salomon assumed control by acquiring 100% of the shares of its long-
standing distribution partner and licensee for adidas products in Denmark Sportgoods A/S
(renamed to adidas Danmark A/S), Them (Denmark), effective April 5, 2001 for an amount of
€ 19 million.
Effective January 1, 2002 the Group assumed full ownership of its former, already fully consoli-
dated joint venture company adidas Italia S.r.l., Monza (Italy), by acquiring the remaining 50% of
outstanding shares for an amount of € 70 million.
On January 1, 2002 adidas-Salomon assumed control over its distribution partner and licensee
for Salomon products in Denmark, SC IMPORT ApS (renamed to Salomon Danmark ApS), by acquir-
ing 100% of the shares for an amount of € 2 million.
Effective January 15, 2002 adidas-Salomon purchased 100% of the shares of the Canadian
outdoor specialist Arc’Teryx Equipment Inc. for an amount of € 18 million. The Vancouver-based
Arc’Teryx specializes in technical outerwear, performance backpacks and climbing equipment.
NOTES TO THE CONSOLIDATED BALANCE SHEET
5 /// CASH AND CASH EQUIVALENTS
Cash and cash equivalents consist of the following:
The majority of marketable securities relates to commercial paper and certificates of deposit
in Eastern European currencies with a maximum maturity of 90 days.
In addition to short-term cash, at year-end 2001 adidas Korea had cash accounts with maturi-
ties exceeding 12 months in the amount of € 2 million, which are included in other non-current
assets (see also note 12). As at December 31, 2002 cash with maturities exceeding 12 months does
not exist.
6 /// ACCOUNTS RECEIVABLE
Accounts receivable are as follows:
7 /// INVENTORIES
Inventories by major classification are as follows:
Goods in transit mainly relate to shipments from suppliers in the Far East to subsidiaries in
Europe, Asia and the Americas.
The allowance for obsolescence mainly relates to inventories on hand. Retail expansion,
in particular factory outlets, has improved clearance margins, thus reducing overall provisioning
requirements. In addition, the stock aging structure continues to improve.
CASH AND CASH EQUIVALENTS € in thousands
Dec. 31 Dec. 31
2002 2001
Cash at banks and in hand 67,455 65,150
Marketable securities 8,501 19,845
Cash and cash equivalents 75,956 84,995
ACCOUNTS RECEIVABLE € in thousands
Dec. 31 Dec. 31
2002 2001
Accounts receivable, gross 1,363,866 1,349,447
Less: allowance for doubtful accounts 71,199 96,254
Accounts receivable, net 1,292,667 1,253,193
INVENTORIES € in thousands
Dec. 31 Dec. 31
2002 2001
Finished goods and merchandise on hand 816,266 932,990
Goods in transit and advanced payments 360,142 348,937
Raw materials 63,159 47,267
Work in progress 14,272 17,915
Inventories, gross 1,253,839 1,347,109
Less: allowance for obsolescence 63,906 74,047
Inventories, net 1,189,933 1,273,062
Notes to the Consolidated Balance Sheet