Reebok 2008 Annual Report Download - page 197

adidas Group Annual Report 2008 193
31 Additional cash fl ow information
In 2008, the line item “Acquisition of subsidiaries and other business units net of cash acquired”
from the consolidated statement of cash fl ows includes the acquisition of Saxon Athletic
Manufacturing, Inc., Reebok Productos Esportivos Brasil Ltda. (formerly Comercial Vulcabras
Ltda.), Textronics, Inc. and Ashworth, Inc. see Note 4.
In 2007, this line item includes the acquisition of the assets and liabilities of Mitchell & Ness,
Inc., based in Philadelphia /Pennsylvania (USA), as part of an asset deal see Note 4.
32 Commitments and contingencies
Other fi nancial commitments
The Group has other fi nancial commitments for promotion and advertising contracts, which
mature as follows:
Financial commitments for promotion and advertising
€ in millions
Dec. 31, 2008 Dec. 31, 2007
Within 1 year 386 443
Between 1 and 5 years 1,082 1,134
After 5 years 611 176
Total 2,079 1,753
Commitments with respect to advertising and promotion maturing after fi ve years have remain-
ing terms of up to 14 years from December 31, 2008.
Information regarding commitments under lease and service contracts is also included in these
Notes see Note 22.
Litigation
The Group is currently engaged in various lawsuits resulting from the normal course of business,
mainly in connection with license and distribution agreements as well as competition issues.
The risks regarding these lawsuits are covered by provisions when a reliable estimate of the
amount of the obligation can be made see Note 16. In the opinion of Management, the ultimate
liabilities resulting from such claims will not materially affect the consolidated fi nancial position
of the Group.
33 Equity compensation benefi ts
Management Share Option Plan (MSOP) of adidas AG
Under the Management Share Option Plan (MSOP) adopted by the shareholders of adidas AG
on May 20, 1999, and amended by resolution of the Annual General Meeting on May 8, 2002, and
on May 13, 2004, the Executive Board was authorised to issue non-transferable stock options for
up to 1,373,350 no-par-value bearer shares to members of the Executive Board of adidas AG
as well as to managing directors /senior vice presidents of its related companies and to other
executives of adidas AG and its related companies until August 27, 2004. The granting of stock
options took place in tranches not exceeding 25% of the total volume for each fi scal year.
A two-year vesting period and a term of approximately seven years upon their respective issue
applies for the stock options.