Reebok 2008 Annual Report Download - page 167

adidas Group Annual Report 2008 163
3 Assets / liabilities classifi ed as held-for-sale
Part of the assets of GEV Grundstücksgesellschaft Herzogenaurach mbH & Co. KG and adidas AG
as well as assets of Immobilieninvest und Betriebsgesellschaft Herzo-Base GmbH & Co. KG
within the HQ /Consolidation segment are presented as disposal groups held-for-sale as of
December 31, 2007 following a Memorandum of Understanding signed by the Group’s Manage-
ment on December 21, 2006. At December 31, 2007, the respective disposal groups contained
assets of € 60 million less liabilities of € 4 million. In the meantime, assets of adidas AG and
assets of Immobilieninvest und Betriebsgesellschaft Herzo-Base GmbH & Co. KG as well as
part of the assets of GEV Grundstücksgesellschaft Herzogenaurach mbH & Co. KG have been
transferred to property, plant and equipment due to a change in conditions. For the years end-
ing December 31, 2008 and 2007, depreciation in the amount of € 1 million and € 2 million,
respectively, has been refl ected for the assets transferred to property, plant and equipment.
The remaining part of GEV Grundstücksgesellschaft Herzogenaurach mbH & Co. KG continues
to be presented as held-for-sale due to a Memorandum of Understanding of a new investor. At
December 31, 2008, these assets classifi ed as held-for-sale amounted to € 12 million. Contract
fi nalisation is expected in 2009.
Furthermore, the previous adidas and Reebok warehouses in the UK have been classifi ed as
assets held-for-sale due to the proposed move of storage and distribution facilities to a new
shared warehouse (December 31, 2008: € 5 million; December 31, 2007: € 10 million). In 2008,
impairment losses in the amount of € 2 million were recognised in other operating expenses.
Furthermore, the assets lost in value due to the devaluation of the British pound. The selling
process commenced in April 2007 and contract fi nalisation is expected in 2009.
In addition, a Rockport warehouse in the USA is classifi ed as held-for-sale as a result of the
intention to sell and the existence of a purchase offer (€ 4 million). Contract fi nalisation is
expected in 2009.
Due to the intention to sell and several existing letters of intent, Gekko Brands, LLC, which was
acquired within the scope of the acquisition of Ashworth, Inc., is classifi ed as a disposal group
held-for-sale. The selling process commenced in December 2008, and contract fi nalisation is
expected in 2009. At December 31, 2008, this disposal group contains assets of € 10 million less
liabilities of € 6 million.
In connection with the planned divesture of the Maxfl i golf ball brand, the carrying amount
of this trademark was also classifi ed as an asset held-for-sale (€ 7 million) at December 31,
2007. The selling negotiations commenced in September 2007, and the contract was executed
in February 2008.
Assets classifi ed as held-for-sale
€ in millions
Dec. 31, 2008 Dec. 31, 2007
Accounts receivable and other current assets 14 33
Inventories 4 —
Property, plant and equipment, net 10 40
Trademarks and other intangible assets, net 3 7
Total 31 80
Liabilities classifi ed as held-for-sale
€ in millions
Dec. 31, 2008 Dec. 31, 2007
Accounts payable and other current liabilities 2 2
Accrued liabilities and provisions 1 2
Deferred tax liabilities 3 —
Total 6 4