Adidas 2002 Annual Report Download - page 130

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The committed medium-term credit lines as well as the private placement documentation
contain a negative-pledge clause and a minimum equity covenant. As at December 31, 2002, actual
shareholders’ equity was well above the amount of the minimum-equity covenant.
The amounts disclosed as borrowings represent outstanding borrowings under the following
arrangements with aggregated expiration dates as follows:
Information regarding the Group’s protection against interest rate risks is also included in
these notes (see note 21).
128 FINANCIAL ANALYSIS CONSOLIDATED FINANCIAL STATEMENTS (IFRS) /// NOTES TO THE CONSOLIDATED BALANCE SHEET
BORROWINGS AS AT DECEMBER 31, 2002 € in millions
Up to Between 1 Between 3 After Total
1 year and 3 years and 5 years 5 years
Bank borrowings 0 104 529 0 633
Commercial paper 0 0 234 0 234
Asset-backed securities 0 0 147 0 147
Private placements 0 0 299 261 560
Total 0 104 1,209 261 1,574
BORROWINGS AS AT DECEMBER 31, 2001 € in millions
Up to Between 1 Between 3 After Total
1 year and 3 years and 5 years 5 years
Bank borrowings 196 535 362 13 1,106
Commercial paper 0 0 280 0 280
Asset-backed securities 0 0 155 0 155
Private placements 0 93 98 34 225
Total 196 628 895 47 1,766
14 /// ACCRUED LIABILITIES AND PROVISIONS
Accrued liabilities and provisions consist of the following:
Marketing provisions mainly consist of provisions for distribution, such as discounts, rebates
and sales commissions, as well as promotion.
The usage of the restructuring provision was mainly related to warehouses and production
restructuring initiatives within Europe.
The balance of the restructuring provision as at December 31, 2002 mainly represents further
restructuring plans within Europe relating to the set-up of Areas already communicated in connec-
tion with the “Winning in Europe” project as well as additional production restructuring initiatives.
Other accrued liabilities and provisions mainly include items not otherwise allocated and
also anticipated losses from purchase and other transactions and contingent losses from pending
lawsuits.
The main portion of the release of € 17 million of other accrued liabilities and provisions relates
to a provision for risks from a lawsuit. An amount of € 15 million was released after the successful
completion of this suit.
ACCRUED LIABILITIES AND PROVISIONS € in millions
Dec. 31 Currency Usage Release Addition Dec. 31
2001 effect 2002
Goods and services not yet invoiced 77 (5) 50 8 102 116
Marketing 73 (5) 51 3 68 82
Payroll, commissions and employee benefits 80 (7) 63 4 96 102
Returns, allowances, warranty 36 (4) 20 4 37 45
Restructuring 20 0 10 1 8 17
Taxes, other than income taxes 7 (1) 5 0 25 26
Other 54 (3) 13 17 42 63
Accrued liabilities and provisions 347 (25) 212 37 378 451