Reebok 2009 Annual Report Download - page 206

202 CONSOLIDATED FINANCIAL STATEMENTS Notes
Personnel expenses which are directly attributable to the production costs of goods are included
within the cost of sales.
Financial income/financial expenses 32
Financial result consists of the following:
N °-
32
FINANCIAL INCOME
€ IN MILLIONS
Year ending
Dec. 31, 2009 Year ending Dec. 31, 2008
Interest income from financial instruments measured at amortised cost 11 30
Interest income from financial instruments at fair value through profit or loss 5 7
Interest income from non-financial assets — —
Net foreign exchange gains — —
Fair value gains from available-for-sale investments — —
Other 3 0
Financial income 19 37
N °-
32
FINANCIAL EXPENSES
€ IN MILLIONS
Year ending
Dec. 31, 2009 Year ending Dec. 31, 2008
Interest expense on financial instruments measured at amortised cost 138 178
Interest expense on financial instruments at fair value through profit or loss — —
Interest expense on provisions and non-financial liabilities — —
Net foreign exchange losses 25 25
Other 6 —
Financial expenses 169 203
Interest income from financial instruments, measured at amortised cost, mainly consists of inter-
est income from bank deposits and loans.
Interest income/expense from financial instruments at fair value through profit or loss
mainly includes interest payments from investment funds as well as net interest payments from
interest derivatives not being part of a hedging relationship. Unrealised gains/losses from fair
value measurement of such financial assets are shown in other financial income or expenses.
Interest expense on financial instruments measured at amortised cost mainly includes inter-
est on borrowings and effects from using the “effective interest method”.
Interest expense on provisions and non-financial liabilities particularly includes effects from
measurement of provisions at present value and interest on non-financial liabilities such as tax
payables.
Other financial expenses include impairment losses on other financial assets amounting to
€ 5 million for the year ending December 31, 2009.
Also included in other financial expenses are minority interests, which are not recorded in
equity according to IAS 32.
Information regarding the Group’s available-for-sale investments, borrowings and financial
instruments is also included in these Notes see Notes 6, 14, 17 and 28.
Income taxes 33
adidas AG and its German subsidiaries are subject to German corporate and trade taxes. For the
years ending December 31, 2009 and 2008, respectively, the statutory corporate income tax rate of
15% plus a surcharge of 5.5% thereon is applied to earnings. The municipal trade tax is approxi-
mately 11.6% of taxable income.
For non-German companies, deferred taxes are calculated based on tax rates that have been
enacted or substantively enacted by the closing date.
Deferred tax assets and liabilities Deferred tax assets and liabilities
Deferred tax assets and liabilities are offset if they relate to the same fiscal authority. The follow-
ing deferred tax assets and liabilities, determined after appropriate offsetting, are presented on
the balance sheet:
N °-
33
DEFERRED TAX ASSETS/LIABILITIES
€ IN MILLIONS
Dec. 31, 2009 Dec. 31, 2008
Deferred tax assets 412 344
Deferred tax liabilities (433) (463)
Deferred tax assets, net (21) (119)