Adidas 2002 Annual Report Download - page 139

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26 /// EARNINGS PER SHARE
Basic earnings per share are calculated by dividing the net income attributable to shareholders by
the weighted average number of shares outstanding during the year.
Dilutive potential shares have arisen under the management stock option plan of adidas-
Salomon AG, which was implemented in 1999. As none of the required performance criteria for the
exercise of the stock options of Tranche I of the stock option plan have been fulfilled to date, this
Tranche did not affect the calculation of dilutive earnings per share. However under Tranche II
of the stock option plan, dilutive potential shares impact diluted earnings per share calculation. In
2001, dilutive potential shares did not exist.
NOTES – ADDITIONAL INFORMATION
27 /// SEGMENTAL INFORMATION
The Group operates predominately in one industry segment, the design, wholesale and market-
ing of athletic and sports lifestyle products. The Group is currently managed by brands and on the
basis of a regional structure.
Certain functions of the Group are centralized and an allocation to specific segments is not
considered to be meaningful. This includes mainly central treasury, worldwide sourcing and global
marketing as well as other headquarter departments. Assets, liabilities, income and expenses
relating to these corporate functions are presented in the Headquarter/Consolidation column
together with non-allocable items and the intersegment elimination.
Compared to the 2001 annual financial statements, the aggregation of the segments has been
reorganized. In accordance with Management responsibility and internal reporting, Mavic is no
longer reported as a separate segment category. The Mavic brand is now included in Salomon.
At the beginning of January 2002, the Group took over distribution and licensing rights for the
Maxfli and Slazenger Golf brands from the Dunlop Slazenger Group. Sales and earnings from
these brands are included in the TaylorMade-adidas Golf segment. In December 2002, the Group
purchased the Maxfli brand (see also note 11), whereas the distribution and licensing rights for
Slazenger Golf were terminated.
In addition, the Group took over the brand Arc’Teryx (see also note 4) which is reported under
the Salomon segment.
Information about the Group’s segments in accordance with the management approach is
presented on the following pages.
137
EARNINGS PER SHARE
Year ending December 31
2002 2001
Net income in € 228,571,000 208,493,000
Weighted number of shares outstanding 45,366,100 45,349,200
Weighted number of shares for diluted earnings per share 45,376,684 –
Basic earnings per share in € 5.04 4.60
Diluted earnings per share in € 5.04 –
Notes – Additional Information