Reebok 2007 Annual Report Download - page 211

ANNUAL REPORT 2007 --- adidas Group
207MALL Refers to a building or set of buildings that contain a variety of retail units and indepen-
dent shops with interconnecting walkways, enabling customers to walk from unit to unit under
one roof.
MARKET CAPITALIZATION Total market value of all outstanding shares.
Market Capitalization = number of outstanding shares x current market price.
MARKET RISK PREMIUM Extra return that the overall market or a particular stock must provide
over the risk-free rate to compensate an investor for taking a relatively higher risk.
Market risk premium = market risk – risk-free rate.
MARKETING WORKING BUDGET Promotion and communication spending including sponsorship
contracts with teams and individual athletes, as well as advertising, retail support, events and
other communication activities, but excluding 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 product category in terms of sales in the golf
market, as well as for TaylorMade-adidas Golf.
MINORITY INTERESTS Part of net income which is not attributable to the reporting company.
Outside ownership interests in subsidiaries that are consolidated with the parent company for
fi nancial reporting purposes.
MONO-BRANDED STORES adidas, Reebok or Rockport branded stores not operated or owned
by the adidas Group but by franchise partners. This concept is used especially in the emerging
markets, such as China, benefi ting from local expertise of the respective franchise partners.
 see also Franchising
MOTION ANALYSIS TECHNOLOGY (MATT™) The technology gathers vital swing information and
statistics using multiple high-speed cameras. MATT distills that information to create a three-
dimensional computer-animated image of a player’s swing viewable from every angle. The tech-
nology is typically used for club fi tting, swing analysis, biomechanics research and also in the
development process for new golf clubs.
MOVABLE WEIGHT TECHNOLOGY™ (MWT™) Gives the golfer the power to adjust the clubhead’s
center of gravity by changing the confi guration of up to four movable weights, which promotes
changes to the shot’s direction, height, spin and distance.
NATURAL HEDGES Offset of currency risks that occurs naturally as a result of a company’s
normal operations, without the use of derivatives. For example, revenue received in a foreign
currency and used to pay known commitments in the same foreign currency.
NBA (NATIONAL BASKETBALL ASSOCIATION) Premier professional men’s basketball league
in the USA, comprising 30 teams.
NET BORROWINGS Portion of gross borrowings not covered by the sum of cash and short-term
fi nancial assets. If a negative fi gure is shown, this indicates a net cash position.
Net borrowings = short-term borrowings + long-term borrowings – cash – short-term fi nancial
assets.
NHL (NATIONAL HOCKEY LEAGUE) Premier professional men’s ice hockey league in North
America, comprising 30 teams from the USA and Canada.
OPERATING EXPENSES Expenses which are not directly attributable to the products or services
sold. Operating expenses are expenses for sales, marketing overheads and marketing working
budget, research and development, general and administrative costs as well as depreciation of
non-production assets.
OPERATING LEASE Method of leasing assets over periods less than the expected lifetime of
those assets. An operating lease is accounted for by the lessee without showing an asset or
a liability on his balance sheet. Periodic payments are accounted for by the lessee as operating
expenses for the period.
OPERATING MARGIN Operating profi t as a percentage of net sales. Measure of a company’s prof-
itability after cost of sales and operating expenses. Best indicator of the profi tability of operating
activities.
Operating margin = (operating profi t / net sales) x 100.
OPERATING OVERHEADS Expenses which are not directly attributable to the products or
services sold such as costs for sales, marketing overheads, logistics, research and development,
as well as general and administrative costs.
OPERATING PROFIT Profi t from operating activities after cost of sales and operating expenses.
Operating profi t = gross profi t + royalty and commission income – marketing working budget –
operating overheads.
OPERATING WORKING CAPITAL Company’s short-term disposable capital which is used to
fi nance its day-to-day business. In comparison to working capital, operating working capital
does not include non-operational items such as cash, fi nancial assets and taxes.  see also
Working Capital
Operating working capital = accounts receivable + inventories – accounts payable.
OPTION Financial instrument which ensures the right to purchase (call option) or to sell (put
option) a particular asset (e. g. shares or foreign exchange) at a predetermined price (strike
price) on or before a specifi c date.
ORDER BACKLOGS  see Backlogs
OTHER OPERATING EXPENSES (AND INCOME) Operating expenses (and income) for sales,
marketing, research and development, as well as for logistics and central fi nance and adminis-
tration. Also includes amortization of goodwill and trademarks.
OVER-THE-COUNTER MARKET (OTC MARKET) When a traded stock is not listed on a stock
exchange. In such cases, brokers negotiate directly with one another over computer networks
and by phone.
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