Adidas 2002 Annual Report Download - page 152

150 FINANCIAL ANALYSIS SUPPLEMENTARY INFORMATION /// GLOSSARY
MARKET The total market value of all outstanding shares, calculated by
CAPITALIZATION /// multiplying the number of shares by the current market price.
MARKETING WORKING Promotion and communications spending including sponsorship
BUDGET /// contracts with teams and individual athletes, as well as advertising,
retail support, events and other communication activities, but exclud-
ing marketing overhead expenses.
METALWOODS /// Golf clubs (drivers and fairway woods) which are constructed from steel
and/or titanium alloys. The name also pays homage to persimmon
wood, which was originally used in the creation of these products. This
is the largest golf product category in terms of sales.
mi adidas /// adidas customization project that gives consumers the opportunity to
create their own unique footwear to their personal specifications in
terms of function, fit and aesthetics. In 2003, this system is available in
Europe, Japan and USA for the running, football, tennis, basketball
(USA only) and handball (Europe only) categories.
MINORITY INTERESTS /// The part of net income which is not attributable to a company. Outside
ownership interests in subsidiaries that are consolidated with the
parent company for financial reporting purposes.
MOLDED EVA /// Foam-based midsole material that offers lightweight cushioning and
comfort.
NATURAL HEDGES /// An offset of currency risks that occurs naturally as a result of a com-
pany’s normal operations, without the use of derivatives. For example,
revenue received in a foreign currency and used to pay known commit-
ments in the same foreign currency.
OPERATING EXPENSES /// Costs associated with running a business which are not directly
attributable to the products or services sold. This refers to sales and
marketing, research and development, as well as general and
administrative costs, and depreciation of non-production assets.
OPERATING WORKING A measurement of the net operating assets that a company must
CAPITAL /// procure in order to finance its day-to-day business. It is the sum of
receivables and inventories less accounts payable.
OPTION /// A financial instrument which ensures the right to purchase (call option)
or the obligation to sell (put option) a particular asset (for example
shares or foreign exchange) at a pre-determined price (strike price) on
or before a specific date.
OWN-RETAIL Sales directly generated through a store operated by adidas. adidas
ACTIVITIES /// own retail includes concept stores, concession corners, e-commerce
and factory outlets.
PRODUCT LICENSEES /// Companies that are authorized to use the name of the adidas-Salomon
Group’s brands to manufacture and distribute products such as sports
watches, sports eyewear, bodycare products and fragrances.
PROJECTED UNIT The accounting method (IAS 19) used to calculate provisions for
CREDIT METHOD /// pensions and similar obligations. It includes not only the pensions and
vested interests accrued as at cut-off date, but also anticipated
increases in salaries and pensions.
PROMOTIONAL Costs related to sponsorships of individual athletes, teams, federations
EXPENSES /// and sporting events for the promotion of a company’s brand(s).
PULL-FACE CLUBHEAD /// A method of metalwood construction that involves separate construc-
tion of the clubhead and clubface, which leads to measurable
improvements in both the strength and weighting of the clubhead.
RETURN ON CAPITAL An indicator of a company’s profitability related to the total financing.
EMPLOYED /// It is calculated by dividing income before taxes, minority interests and
the financial and extraordinary results by capital employed (defined
as the average of shareholders’ equity plus minority interests plus net
total borrowings for the year).