Reebok 2008 Annual Report Download - page 95

adidas Group Annual Report 2008 091
Total assets
€ in millions
2004 1) 4,434
2005 5,750
2006 2) 8,379
2007 8,325
2008 9,533
1) Restated due to application of amendment to IAS 19.
2) Including Reebok business segment from February 1, 2006 onwards.
Inventories
€ in millions
2004 1,155
2005 1,230
2006 1) 1,607
2007 1,629
2008 1,995
1) Including Reebok business segment from February 1, 2006 onwards.
Receivables
€ in millions
2004 1,046
2005 965
2006 1) 1,415
2007 1,459
2008 1,624
1) Including Reebok business segment from February 1, 2006 onwards.
Other current assets up 49%
Other current assets increased 49% to € 789 million at the
end of 2008 from € 529 million in 2007. This development
was mainly due to higher fair values of fi nancial instruments
see Note 9, p. 168.
Fixed assets increase 9%
Fixed assets increased 9% to € 4.074 billion at the end of 2008
versus € 3.726 billion in 2007. This was mainly the result of
continued own-retail expansion, investment into the Group’s
IT infrastructure, the transfer of assets held-for-sale to
fi xed assets as well as the acquisition of Ashworth, Inc. and
Textronics, Inc. Additions of € 378 million were partly offset
by depreciation and amortisation of € 234 million as well as
disposals in an amount of € 41 million. Currency translation
effects on fi xed assets denominated in currencies other than
the euro had a positive effect of € 120 million.
Assets held-for-sale decrease 60%
At the end of 2008, assets held-for-sale decreased 60% to
€ 31 million (2007: € 80 million). In the second quarter of
2008, land and buildings in Herzogenaurach, Germany, which
are no longer in the scope of a sale, were transferred to fi xed
assets. At the end of 2008, assets held-for-sale mainly related
to warehouses for sale in the UK and in the USA, property in
Herzogenaurach and assets in connection with the planned
divestiture of Gekko Brands, LLC acquired with Ashworth, Inc.
see Note 3, p. 163.
Other non-current assets increase 25%
Other non-current assets increased by 25% to € 180 million at
the end of 2008 from € 147 million in 2007, mainly driven by an
increase in the fair value of fi nancial instruments see Note 14,
p. 170.
Accounts payable grow 43%
Accounts payable increased 43% to € 1.218 billion at the end
of 2008 versus € 849 million in 2007. On a currency-neutral
basis, accounts payable were up 37%. This development was
mainly a result of a higher volume of production and product
shipments towards the end of the year in anticipation of future
price increases as well as potential regulatory changes in
Latin America see Risk and Opportunity Report, p. 107. The new
Reebok companies in Latin America as well as the consoli-
dation of the Ashworth business acquired in November also
contributed to the increase.
Other current liabilities increase 11%
Other current liabilities increased 11% to € 295 million at the
end of 2008 from € 266 million in 2007, primarily as a result
of increases in tax liabilities other than income taxes see
Note 17, p. 173.
Other non-current liabilities decrease 23%
Other non-current liabilities decreased 23% to € 52 million at
the end of 2008 from € 69 million in 2007, primarily as a result
of a decrease in the fair value of non-current forward contracts
see Note 19, p. 175.
Equity grows due to increase in net income
Shareholders’ equity rose 12% to € 3.386 billion at the end of
2008 versus € 3.023 billion in 2007. The net income gener-
ated during the period more than offset the buyback of adidas
AG shares. Currency translation effects and increases in the
fair value of forward contracts also positively impacted this
develop ment see Note 21, p. 176.
Expenses related to off-balance sheet items
Our most important off-balance sheet assets are operating
leases, which are related to retail stores, offi ces, warehouses
and equipment. The Group has entered into various operating
leases as opposed to property acquisitions to reduce exposure
to property value fl uctuations. Rent expenses increased 25%
to € 422 million in 2008 from € 337 million in the prior year,
mainly due to the continued expansion of the adidas Group’s
own-retail activities see Note 22, p. 181.