Reebok 2006 Annual Report Download - page 87

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adidas Group ›083
Total Assets Increase 46%
At the end of 2006, total assets increased 46% to € 8.379 bil-
lion versus € 5.750 billion in the prior year, mainly as a result
of the first-time inclusion of assets related to the Reebok
business.
Inventories Up 31%
Group inventories increased 31% to € 1.607 billion in 2006
versus € 1.230 billion in 2005, largely as a result of the first-
time inclusion of € 404 million in inventories related to the
Reebok business. On a currency-neutral basis, this increase
was 41%. Inventories for the adidas Group excluding Reebok
declined 2% (+ 5% currency-neutral). The increase on a
currency-neutral basis reflects the Group’s growth expecta-
tions as well as higher inventory levels in Latin America in
advance of new import regulations in Brazil and Argentina.
Receivables Grow 47%
Group receivables grew 47% (+ 57% currency-neutral) to
€ 1.415 billion at the end of 2006 versus € 965 million in the
prior year, primarily due to the first-time inclusion of receiv-
ables totaling € 461 million related to the Reebok business.
Receivables for the adidas Group excluding Reebok decreased
1% (+ 5% currency-neutral). The increase on a currency-
neutral basis is lower than sales growth during the fourth
quarter of 2006.
Other Current Assets Down 23%
Other current assets decreased 23% to € 413 million at the
end of 2006 from € 537 million in 2005. Other current assets
for the adidas Group excluding Reebok were down 40%, mainly
due to lower positive fair values of our financial instruments.
This more than offset the impact from the first-time inclusion
of other current assets in an amount of € 90 million related to
the Reebok business.
Fixed Assets Nearly Quadruple
Fixed assets increased by 274% to € 3.988 billion at the end
of 2006 versus € 1.065 billion in 2005, primarily related to the
first-time inclusion of Reebok. As a result of purchase price
allocation, intangible assets were capitalized in amounts of
€ 1.674 billion and € 1.165 billion related to trademarks and
other intangible assets as well as goodwill, respectively.
Other additions of € 301 million in 2006 were partly counter-
balanced by depreciation and amortization of € 217 million
and disposals in an amount of € 38 million. Assets amounting
to € 30 million were transferred to assets held for sale (see
Note 4, p. 155). Currency effects had a negative impact on
fixed assets in an amount of € 265 million.
Other Non-Current Assets Increase 10%
Other non-current assets increased 10% to € 134 million at
the end of 2006 from € 123 million in 2005, mainly reflecting
the first-time inclusion of € 6 million of other non-current
assets related to the Reebok business. Non-current assets for
the adidas Group excluding Reebok increased 5%, primarily
due to a higher non-current portion of prepaid promotion
contracts.
Accounts Payable Grow 10%
Accounts payable grew 10% (+ 20% currency-neutral) to
€ 752 million at the end of 2006 versus € 684 million in the
prior year, due to the first-time inclusion of payables total-
ing € 139 million related to the Reebok business. Payables
for the adidas Group excluding Reebok decreased 10% (– 2%
currency-neutral) versus the prior year. This decline reflects
the higher than usual year-end level in 2005 related to pay-
ables for a high volume of 2006 FIFA World Cup™ products.
Total Assets € in millions
2002
2003
20041)
2005
20062)
4,261
4,188
4,434
5,750
8,379
1) Restated due to application of amendment to IAS 19.
2) Including Reebok business.
Inventories € in millions
2002
2003
2004
2005
20061)
1,190
1,164
1,155
1,230
1,607
1) Including Reebok business.
Receivables € in millions
2002
2003
2004
2005
20061)
1,293
1,075
1,046
965
1,415
1) Including Reebok business.
» Balance Sheet and Cash Flow Statement