Reebok 2006 Annual Report Download - page 169

› Notes to the Consolidated Balance SheetNotes ›165
20 » Other Non-Current Liabilities
Other non-current liabilities consist mainly of finance lease obligations of € 6 million and
€ 8 million (see Note 23), negative fair values of long-term interest rate options of € 12 mil-
lion and € 9 million and deferred income of € 12 million as at December 31, 2006 and 2005,
respectively.
Liabilities due after more than five years totaled € 15 million and € 8 million as at Decem-
ber 31, 2006 and 2005, respectively.
21 » Minority Interests
This line item within equity comprises the equity of third parties in a number of consolidated
companies. Minority interests are attributable to three and four subsidiaries as at December
31, 2006 and 2005, respectively (see Shareholdings/Attachment II to these Notes).
These subsidiaries were mainly established with former independent distributors
and licensees for the adidas brand or purchased as part of the acquisition of the Reebok
business.
In accordance with IAS 32, the following minority interests are no longer reported within
minority interests: GEV Grundstücksgesellschaft Herzogenaurach mbH & Co. KG (Germany),
as the company is a limited partnership, and adidas Hellas A.E. (Greece) and adidas Suomi
OY (Finland), as these minorities hold put options. The fair value of these minorities is shown
within other liabilities. The difference between the fair value and the minority interests is
shown as goodwill less accumulated amortization. The result for these minorities is reported
within financial expenses.
22 » Shareholders’ Equity
On December 31, 2005, the nominal capital of adidas AG (formerly adidas-Salomon AG)
amounted to € 129,950,092.80 and was divided into 50,761,755 no-par-value bearer shares
and was fully paid-in.
In January 2006, the nominal capital increased to a total of € 130,091,660.80, divided into
50,817,055 no-par-value bearer shares, as a result of the exercise of a total of 55,300 stock
options in November 2005 and the issuance of 55,300 no-par-value bearer shares associated
with the Management Share Option Plan (MSOP) of adidas AG. Capital reserves thus increased
by € 2,830,920.
The nominal capital of adidas AG subsequently increased to a total of € 203,268,220 as
a result of the capital increase from the Company’s retained earnings without the issuance of
new shares (“Capital Increase 2006”), resolved upon by the Annual General Meeting on May 11,
2006. Furthermore, it was resolved to implement a share split at a ratio of 1 to 4, pursuant to
which the nominal capital was divided into a total of 203,268,220 no-par-value bearer shares.
At the end of May 2006, the nominal capital of adidas AG increased to a total of
€ 203,270,180, divided into 203,270,180 no-par-value bearer shares, as a result of the exercise
of the conversion right derived from one bond in the amount of € 50,000 issued within the
scope of the convertible bonds granted by the 100% subsidiary adidas International Finance
B.V. (formerly adidas-Salomon International Finance B.V.) (€ 400,000,000; 2.50% convertible
bonds of 2003/2018) and also as a result of the issuance of 1,960 no-par-value bearer shares.
Furthermore, in July 2006, the nominal capital increased to a total of € 203,496,860,
divided into 203,496,860 no-par-value bearer shares, as a result of the exercise of a total of
56,670 stock options in May 2006, which – following the registration of the share split – now
entitle the beneficiaries to receive four shares per option, and through the issuance of 226,680
no-par-value bearer shares associated with the Management Share Option Plan. Capital
reserves thus increased by € 3,321,108.
In October 2006, the nominal capital again increased as a result of the exercise of a to-
tal of 10,000 stock options in August 2006 and the issuance of 40,000 no-par-value bearer
shares associated with the Management Share Option Plan. Capital reserves thus increased
by € 121,890. At the balance sheet date, the nominal capital of adidas AG therefore amounted
to a total of € 203,536,860 and was divided into 203,536,860 no-par-value bearer shares. The
nominal capital was fully paid-in.
In January 2007, the nominal capital of adidas AG was then increased by a further
€ 30,200 as a result of the exercise of 7,550 stock options in November 2006 and the issuance
of 30,200 no-par-value bearer shares associated with the Management Share Option Plan.
Capital reserves thus increased by € 175,296. On February 16, 2007, the nominal capital of
adidas AG therefore amounted to € 203,567,060 and is divided into 203,567,060 no-par-value
bearer shares.
The corresponding adjustment of the amount of the nominal capital resulting from the
above transactions up to the end of January 2007 was filed with the Commercial Register on
January 29, 2007, by way of a declaratory entry.
Each share has one vote and is entitled to a dividend in the year it is issued.
Historical Development € in millions
Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31
2006 2005 2004 2003 2002
Defined benefit obligation 170 131 118 100 93
Plan assets 44 — — — —
Deficit in plan 126 131 118 100 93
Experience adjustments 4 1 — — —