Reebok 2009 Annual Report Download - page 197

CONSOLIDATED FINANCIAL STATEMENTS Notes 193
Reserves Reserves
Reserves within shareholders’ equity are as follows:
Capital reserve: comprises the paid premium for the issuance of share capital.
Cumulative translation adjustments: this reserve comprises all foreign currency differences
arising from the translation of the financial statements of foreign operations.
Hedging reserve: comprises the effective portion of the cumulative net change in the fair value
of cash flow hedges related to hedged transactions that have not yet occurred as well as of hedges
of net investments in foreign subsidiaries.
Other reserves: comprise the cumulative net change of actuarial gains or losses and the asset
ceiling effect regarding defined benefit plans, expenses recognised for share option plans as well
as fair values of available-for-sale financial assets.
Retained earnings: comprise the accumulated profits less dividends paid.
Distributable profits and dividends Distributable profits and dividends
Distributable profits to shareholders are determined by reference to the retained earnings of
adidas AG and calculated under German Commercial Law.
The dividend for 2008 was € 0.50 per share (total amount: € 97 million), approved by the
2009 Annual General Meeting. The Executive Board of adidas AG will propose to shareholders a
dividend payment of € 0.35 per dividend-entitled share for the year 2009 to be made from retained
earnings of € 285 million reported as at December 31, 2009. The subsequent remaining amount
will be carried forward.
209,216,186 dividend-entitled shares exist as at December 31, 2009, which would lead to a
dividend payment of € 73 million.
Leasing and service arrangements 27
Operating leases Operating leases
The Group leases primarily retail stores as well as offices, warehouses and equipment. The
contracts regarding these leases with expiration dates of between one and fifteen years partly
include renewal options and escalation clauses. Rent expenses, which partly depend on net
sales, amounted to € 480 million and € 422 million for the years ending December 31, 2009 and
2008, respectively.
Future minimum lease payments for minimum lease durations are as follows:
N °-
27
MINIMUM LEASE PAYMENTS FOR OPERATING LEASES
€ IN MILLIONS
Dec. 31, 2009 Dec. 31, 2008
Within 1 year 360 213
Between 1 and 5 years 619 516
After 5 years 320 340
Total 1,299 1,069
Finance leases Finance leases
The Group also leases various premises for administration, warehousing, research and develop-
ment as well as production, which are classified as finance leases.
The net carrying amount of these assets of € 3 million and € 5 million was included in prop-
erty, plant and equipment as at December 31, 2009 and 2008, respectively. Interest expenses were
€ 1 million (2008: € 2 million) and depreciation expenses were € 1 million (2008: € 1 million) for
the year ending December 31, 2009.
The minimum lease payments under these contracts over their remaining terms which
extend up to 2016 and their net present values are as follows:
N °-
27
MINIMUM LEASE PAYMENTS FOR FINANCE LEASES
€ IN MILLIONS
Dec. 31, 2009 Dec. 31, 2008
Lease payments falling due:
Within 1 year 1 2
Between 1 and 5 years 1 2
After 5 years 1 1
Total lease payments 3 5
Less: estimated amount representing interest 0 0
Obligation under finance leases 3 5
Thereof falling due:
Within 1 year 1 2
Between 1 and 5 years 1 2
After 5 years 1 1
Service arrangements Service arrangements
The Group has outsourced certain logistics and information technology functions, for which it
has entered into long-term contracts. Financial commitments under these contracts mature as
follows:
N °-
27
FINANCIAL COMMITMENTS FOR SERVICE ARRANGEMENTS
€ IN MILLIONS
Dec. 31, 2009 Dec. 31, 2008
Within 1 year 42 49
Between 1 and 5 years 59 48
After 5 years — —
Total 101 97