Adidas 2002 Annual Report Download - page 150

ABS (ASSET-BACKED Securities (bonds or notes) backed by loan receivables, accounts
SECURITIES) /// receivable or other quantifiable assets.
ADR (AMERICAN A negotiable certificate of a foreign-based company held by a US bank
DEPOSITARY RECEIPT) /// that entitles the holder to all dividends and rights of the underlying
stock. ADRs trade similar to stocks on US exchanges, and provide a
way for Americans to invest in foreign-based companies by buying
their shares in the USA instead of through an overseas exchange.
Unsponsored ADRs are issued by a broker or depositary bank without
the involvement of the company whose stock underlies the ADR.
ATHLETIC SPECIALTY A major distribution channel for adidas products in terms of sales.
RETAILERS /// These stores specialize in merchandising athletic footwear and apparel
products to the 12–24 year-old urban consumer group. Key buying
motivators of these consumers are design and technology underpinned
with strong marketing activities.
BACKLOGS (ALSO The value of orders received for future delivery. At brand adidas, orders
ORDER BACKLOGS) /// are received approximately six months in advance, depending on
the season. This information is used by the market as an indicator of
future sales performance.
CAPTIVE (RE)INSURANCE Wholly (or partly) owned (re)insurance subsidiary of a non-insurance
COMPANY /// parent created to insure all or part of the risks/exposures faced by
the parent company, its shareholders, group companies or affiliates.
CHASSIS /// The framework to which the upper part of a shoe or ski boot is
mounted.
CLEARANCE SALES /// Sales made outside the course of normal business, arising from a pre-
planned commercial decision by Management to make discounts to the
list price of articles (normally post-season) in order to clear excess
stock. This does not include sales where a price discount is given in the
normal course of trading with the client, for example volume discounts.
COMMERCIAL PAPER /// Tradable unsecured promissory notes issued for the purpose of short-
term financing. Commercial paper is issued on an ongoing, revolving
basis with maturities typically between seven days and 12 months or
more.
CORPORATE The distribution of rights and responsibilities among different
GOVERNANCE /// participants in a company, in particular shareholders, the Executive
Board and the Supervisory Board.
CORRIDOR APPROACH /// A range of plus or minus 10% around a company’s best estimate of
post-employment benefit obligations (IAS 19). Outside that range, it is
not reasonable to assume that actuarial gains or losses will be offset
in future years.
COR ZONE (COEFFICIENT COR relates to the speed at which a golf ball rebounds from a club-
OF RESTITUTION ZONE) /// face. The COR zone is the area of the clubface that delivers the club’s
maximum COR when it makes impact with a ball, resulting in greater
ball velocity on off-center hits and longer drives.
COST OF SALES /// The costs of obtaining and manufacturing products. This figure
includes costs for raw materials plus the costs of production, customs
and delivery to our sales organizations.
CURRENCY-NEUTRAL /// Financial figures translated at prior-year exchange rates. This indi-
cates increases or decreases to reported figures by eliminating
variances arising from currency translation and is the best indicator of
underlying business performance.
CURRENT INVENTORIES /// Inventories within the current range offering, available for sale within
the current season.
CURRENT RECEIVABLES /// Account receivables which are “not yet due”. Payment is expected
within the agreed customer trade terms.
Glossary
148 FINANCIAL ANALYSIS SUPPLEMENTARY INFORMATION