Adidas 2002 Annual Report Download - page 142

Download and view the complete annual report

Please find page 142 of the 2002 Adidas annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 160

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160

29 /// COMMITMENTS AND CONTINGENCIES
Other Financial Commitments
The Group has other financial commitments for promotion and advertising contracts, which mature
as follows:
Commitments with respect to advertising and promotion maturing after five years have
remaining terms of up to thirteen years from December 31, 2002.
Information regarding commitments under lease and service contracts is also included in
these notes (see note 20).
Litigation
The Group is currently engaged in various lawsuits resulting from the normal course of business,
mainly in connection with license and distribution agreements. The risks regarding these lawsuits
are covered by accrued liabilities and provisions if a reliable estimate of the amount of the obli-
gation can be made (see also note 14). In the opinion of Management, the ultimate liabilities result-
ing from such claims will not materially affect the consolidated financial position of the Group.
Net sales to third parties are shown in the geographic market in which the revenues are
realized. Intersegment sales represent sales to operational units not belonging to the same region;
the global sourcing function is shown in the Headquarter/Consolidation column. There are no sales
between the brands.
Transactions between the segments are based on the dealing-at-arm’s-length principle.
Segment assets include all operating assets and comprise mainly accounts receivable, inven-
tory, property, plant and equipment as well as intangible assets. Segment liabilities comprise
operating liabilities and consist principally of trade and other payables and accrued liabilities and
provisions. Non-allocable items include goodwill, financial assets, assets and liabilities relating to
income taxes and borrowings, which are included in the Headquarter/Consolidation column.
Capital expenditure, amortization and depreciation relate to segment assets; the acquisition of
goodwill and the inception of finance leases do not affect capital expenditure.
28 /// ADDITIONAL CASH FLOW INFORMATION
The Group acquired all outstanding shares of adidas Danmark A/S and Cliché S.A.S. in 2001 and of
Arc’Teryx Equipment Inc. and Salomon Danmark ApS in 2002 (see also note 4).
The fair value of the net assets approximated the book value of the net assets acquired.
The assets acquired and liabilities assumed were as follows at the date of the acquisition:
140 FINANCIAL ANALYSIS CONSOLIDATED FINANCIAL STATEMENTS (IFRS) /// NOTES – ADDITIONAL INFORMATION
CASH FLOW OF ACQUIRED SUBSIDIARIES € in thousands
2002 2001
Cash 8140
Inventories 7,175 11,371
Receivables and other current assets 4,246 3,149
Property, plant and equipment 1,413 510
Goodwill and other intangible assets 15,153 18,990
Investments and other non-current assets –8
Accounts payable and other liabilities (4,235) (11,583)
Short-term borrowings –(2,855)
Long-term bank borrowings (4,129) (71)
Total acquisition cost 19,631 19,659
Less: cash acquired (8) (140)
Cash flow on acquisition net of cash acquired 19,623 19,519
FINANCIAL COMMITMENTS FOR PROMOTION AND ADVERTISING € in millions
Dec. 31 Dec. 31
2002 2001
Within 1 year 195 193
Between 1 and 5 years 417 470
After 5 years 121 66
733 729