Reebok 2007 Annual Report Download - page 212

APPENDIX - Glossary ANNUAL REPORT 2007 --- adidas Group
208 OWN-RETAIL ACTIVITIES Sales directly generated through a store operated by a brand segment
within the adidas Group. Own retail includes adidas Concept Stores (Sport Performance and
Sport Style) and concession corners as well as factory outlets and e-commerce for the adidas,
Reebok and Rockport brands.
PGA TOUR Major US men’s professional golf tour, featuring 49 golf tournaments.
PRICE-EARNINGS RATIO (P / E RATIO) A company’s share price divided by its current or future
diluted earnings per share. The P / E ratio is used by investors as a fundamental measure of the
attractiveness of a particular security versus other securities or the overall market. It is usually
more useful to compare P / E ratios of one company to other companies in a similar industry. In
general, a high P / E ratio suggests that investors are expecting higher earnings growth in the
future compared to companies with a lower P / E.
PRICE POINTS Specifi c selling prices, normally using “psychological” numbers, for example a
product price of USD 9.99 instead of USD 10.
PRIVATE PLACEMENT Placement of securities directly to institutional investors, such as banks,
mutual funds, insurance companies, pension funds, and foundations.
PRODUCT LICENSEES Companies that are authorized to use the name of a brand or company
to manufacture and distribute products. For adidas, these products primarily include sports
watches, sports eyewear, toiletries and perfume, for Reebok fi tness equipment and for
TaylorMade-adidas Golf bags and gloves.
PROMOTION PARTNERSHIPS Partnerships with events, associations, leagues, clubs and indi -
vidual athletes. In exchange for the services of promoting the adidas Group, the party is provided
with cash and / or promotional material.
PROMOTIONAL EXPENDITURE Expenses related to promotion partnerships.
PURCHASE PRICE ALLOCATION (PPA) Stipulated by IFRS regulations. Allocation of the purchase
price paid for an acquisition according to the fair values assigned to acquired assets and liabili-
ties.
RECORD DATE Date by which a shareholder must own a company’s shares in order to be able to
register for participation in the Annual General Meeting of such company. According to German
law, the record date is twenty-one days before the Annual General Meeting.
REGIONS The adidas Group segments its worldwide business into four regions: Europe, Asia,
North America and Latin America. Whereas North America and Latin America match the actual
geographical classifi cation, Europe also includes Africa and the Middle East, and Asia addition-
ally comprises the Pacifi c region, Australia and New Zealand.
RETAIL INVESTOR Individual who purchases securities for him- / herself, as opposed to an
institutional investor.
RETURN ON CAPITAL EMPLOYED (ROCE) Measure of the returns that a company is realizing
from its capital.
ROCE = (income before taxes + fi nancial result + extraordinary income) / (average of share-
holders’ equity + minority interests + total net borrowings).
RETURN ON EQUITY (ROE) Indicator of company profi tability related to the shareholders’ fi nancing.
ROE = net income / shareholders’ equity.
RISK-FREE RATE Rate of return to be expected on a risk-less investment, e. g. federal bonds.
RSS (REALLY SIMPLE SYNDICATION) Web feed format for delivering regularly changing web
content. The format is used to allow people to stay informed by automatically retrieving the
latest content from the website of choice.
SEASON At the adidas Group, we typically design and produce two major collections per year –
a Fall / Winter and a Spring / Summer collection. Hence, we divide our business into a Fall / Winter
and a Spring / Summer season accordingly.
SECOND TIER SUPPLIER Also tier-two supplier. Supplier who provides the adidas Group with
materials and components to be used in the production of fi nished products, but does not manu-
facture products.
SEGMENT Also Business Segment. Units within a company that have profi t and loss responsi-
bility. The adidas Group is currently divided into four major business segments: adidas, Reebok,
TaylorMade-adidas Golf and HQ / Consolidation.
SEGMENTAL REPORTING Information regarding the fi nancial position and results of operations
in individual brands (segments) and regions. This gives an indication of developments in the indi-
vidual segments and their contribution to the Group’s results.
SELL-THROUGH An indicator of how fast retailers are selling a particular product to the con-
sumer.
SHAREHOLDER VALUE A management concept that focuses strategic and operational decision-
making on steadily increasing a company’s value for shareholders.
SHOP-IN-SHOP adidas, Reebok or Rockport area within a larger store. The concept may be
operated by the store or the adidas Group depending on individual arrangements. The goal of
this distribution method is to give consumers a similar experience to an own-retail environment
albeit on a smaller scale.
SIGNATURE COLLECTION Product collection which carries the name and / or visuals relating to
a top athlete, e. g. David Beckham football boot, Tracy McGrady basketball shoe, Sidney Crosby
hockey stick.