Adidas 2002 Annual Report Download - page 131

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15 /// OTHER CURRENT LIABILITIES
Other current liabilities consist of the following:
Information regarding forward contracts and currency options is also included in these notes
(see note 21).
16 /// PENSIONS AND SIMILAR OBLIGATIONS
The Group sponsors and/or contributes to various pension plans. The benefits are provided pursuant
to the legal, fiscal and economic conditions in each respective country.
The provision for pensions and similar obligations consists of the following:
The actuarial valuations of defined benefit plans are made at the end of each reporting period.
Similar obligations include mainly long-term liabilities under a deferred compensation plan. The
funds withheld are invested by the Group on behalf of the employees in certain securities, which are
presented under other non-current assets (see also note 12).
129
The expenses recognized for defined benefit and contribution plans are presented in selling,
general and administrative expenses. Pension expenses are as follows:
Defined Benefit Plans
The provision for pensions evolved as follows:
Most pension provisions are for employees in Germany where the actuarial assumptions for
the defined benefit plans are as follows:
PENSIONS AND SIMILAR OBLIGATIONS € in thousands
Dec. 31 Dec. 31
2002 2001
Defined benefit plans 89,391 81,643
Thereof: adidas-Salomon AG 70,391 65,080
Similar obligations 9,568 10,445
Pensions and similar obligations 98,959 92,088
OTHER CURRENT LIABILITIES € in thousands
Dec. 31 Dec. 31
2002 2001
Liabilities due to personnel 14,444 13,275
Tax liabilities other than income taxes 27,680 27,562
Liabilities due to social security 16,576 15,388
Interest rate options 01,181
Currency options 16,449 1,760
Forward contracts 35,498 11,511
Liabilities due to affiliated companies 452 451
Deferred income 92 247
Sundry 37,768 38,665
Other current liabilities 148,959 110,040
PENSION EXPENSES € in thousands
Year ending December 31
2002 2001
Defined benefit plans 10,434 9,724
Thereof: adidas-Salomon AG 7,087 6,187
Defined contribution plans 16,593 11,829
Pension expenses 27,027 21,553
PROVISION FOR DEFINED BENEFIT PLANS € in thousands
Provision for pensions as at December 31, 2001 81,643
Currency effect (680)
Pension expense 10,434
Pensions paid (2,006)
Provision for pensions as at December 31, 2002 89,391
ACTUARIAL ASSUMPTIONS
Dec. 31 Dec. 31
2002 2001
Discount rate 5.75% 6.0%
Salary increases 1.7–3.0% 1.7–3.0%
Pension increases 1.7– 2.0% 1.7–2.0%