Reebok 2008 Annual Report Download - page 214

210 Appendix Glossary
German Co-Determination Act Mitbestimmungsgesetz (MitbestG). This act governs the form
of co-determination of employees in corporations employing more than 2,000 employees. It
stipulates, among other things, that such a corporation’s Supervisory Board must be composed
of an equal number of employees and shareholder representatives.
Go to market All instruments, tools and channels used to connect with consumers in order to
best fulfi l their needs.
Goodwill Intangible asset that quantifi es the price that a buyer of a company has paid for the
reputation, know-how and market position of the acquired company. Goodwill is the excess of
the amount paid over the fair value of the net assets acquired at the purchase date.
Green grass retailers Golf distribution channel. Small golf specialty shops typically located at
a golf course.
Gross Domestic Product (GDP) Market value of all fi nished goods and services produced
within a country in a given period of time.
GDP = consumption + investment + government spending + (exports − imports).
Gross margin Gross profi t as a percentage of net sales.
Gross margin = (gross profi t / net sales) × 100.
Gross profi t Difference between net sales and the cost of sales.
Gross profi t = net sales – cost of sales.
Hardware Product category which comprises sports equipment that is used rather than worn
by the athlete, such as bags, balls, fi tness equipment, golf clubs and hockey sticks.
Hedging A strategy used to minimise exposure to changes in prices, interest rates or
exchange rates by means of derivative fi nancial instruments (options, swaps, forward contracts,
etc.).
see also Natural Hedges
Hybrid Golf clubs, cross between a wood and an iron, aggregating typical characteristics of
both clubs. Often referred to as “rescues”.
In-house bank Internally and centrally managed cash liquidity within the adidas Group
network of subsidiaries. Organisation and implementation through the adidas Group’s Treasury
department.
Initial Public Offering (IPO) First placement of a corporation’s common shares on an
organised market.
Institutional investor Investors such as investment companies, mutual funds, brokerages,
insurance companies, pension funds, investment banks and endowment funds. They are
fi nancially sophisticated, with a greater knowledge of investment vehicles and risks, and have
the means to make large investments.
Interest coverage Indicates the ability of a company to cover net interest expenses with
income before net interest and taxes.
Interest coverage = income before interest and tax / interest.
Interest rate cap Option contract which places an upper limit on a fl oating interest rate. The
writer of the cap is required to pay the holder of the cap the difference between the fl oating rate
and the reference rate when that reference rate is exceeded. There is a premium to be paid by
the buyer of such a contract as the market price for the potential pay-out.
International Accounting Standards Board (IASB) Independent, privately-funded cooperation
of professional associations dealing with matters of fi nancial accounting and setting and pro-
moting the IFRS (formerly IAS).
International Financial Reporting Interpretations Committee (IFRIC) Accounting body which
rules on controversial accounting issues. Its interpretations are approved by the International
Accounting Standards Board (IASB) and, once adopted, are binding on all International Financial
Reporting Standards (IFRS) users.
International Financial Reporting Standards (IFRS) Reporting standards (formerly called
IAS) which have been adopted by the International Accounting Standards Board (IASB). The
objective is to achieve uniformity and transparency in the accounting principles that are used
by businesses and other organisations for fi nancial reporting around the world.
Investments see Capital expenditure
Joint venture A cooperation between companies involving the foundation of a new, legally
independent business entity in which the founding companies (two or more companies) partici-
pate with equity and signifi cant resources.
Key accounts Wholesalers or retailers which are primary customers and account for a large
percentage of sales.
Licensed apparel Apparel products, which are produced and marketed under a license
agreement with a sports organisation (e.g. FIFA, UEFA, IOC), sports league (e.g. NFL, NBA),
professional team (e.g. Real Madrid, AC Milan) or university (e.g. UCLA, Notre Dame). If visible,
the supplier’s branding is secondary.
Licensed business For certain product categories, independent third parties are authorised
to use the name of a brand or company to manufacture and distribute products. For the adidas
Group, for example, licensed business is comprised of royalty income e.g. for cosmetics,
watches and eyewear at adidas and fi tness equipment at Reebok see also Product licensees.