Reebok 2009 Annual Report Download - page 228

224 ADDITIONAL INFORMATION Glossary
Hybrids
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 investors
Investors such as investment companies,
mutual funds, brokerages, insurance
companies, pension funds, investment banks
and endowment funds. They are financially
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 × 100.
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 financial reporting around the
world.
International Labour Organization
The International Labour Organization (ILO)
is a specialised agency of the United Nations
which seeks the promotion of internationally
recognised human and labour rights see also
www.ilo.org.
ISO 14001
International Organization for Standardization
(ISO) Standard 14001 specifies the require-
ments for an environmental management sys-
tem within companies/organisations. It applies
to those environmental aspects over which the
organisation has control and over which it can
be expected to have an influence (e.g. energy
or water consumption).
Key accounts
Wholesalers or retailers which are primary
customers and account for a large percentage
of sales.
Licensed 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 fitness equipment at
Reebok.
Lifestyle business
In the sporting goods industry, business
related to sport-inspired casual footwear and
apparel.
Liquidity ratios I – III
Measures the extent to which a company can
quickly liquidate assets to cover short-term
liabilities.
Liquidity I: ((sum of cash + short-term financial
assets) / current liabilities) × 100.
Liquidity II: ((sum of cash + short-term
financial assets + accounts receivable) /
current liabilities) × 100.
Liquidity III: ((sum of cash + short-term
financial assets + accounts receivable +
inventories) / current liabilities) × 100.
Market capitalisation
Total market value of all outstanding shares.
Market capitalisation = number of outstanding
shares × current market price.
Marketing working budget
Promotion and communication spending
including sponsorship contracts with teams
and individual athletes, as well as advertising,
events and other communication activities,
but excluding marketing overhead expenses.
Metalwoods
Golf clubs (drivers and fairway woods)
which are constructed from steel and/or
titanium alloys. The name also pays homage
to persimmon wood, which was originally
used in the creation of these products.
This is the largest product category in terms
of sales in the golf market, as well as for
TaylorMade-adidas Golf.
Minority interests
Part of net income which is not attributable to
the reporting company as it relates to outside
ownership interests in subsidiaries that are
consolidated with the parent company for
financial reporting purposes.
MOI (Moment of Inertia)
Measure of an object’s resistance to changes in
its rotation rate. Used as a key measurement in
the golf club business.
Mono-branded stores
adidas, Reebok or Rockport branded stores
not operated or owned by the adidas Group
but by franchise partners. This concept is
used especially in the emerging markets, such
as China, benefiting from local expertise of
the respective franchise partners see also
Franchising.
Natural hedges
Offset of currency risks that occurs naturally
as a result of a company’s normal operations,
without the use of derivatives. For example,
revenue received in a foreign currency and
used to pay known commitments in the same
foreign currency.
Net borrowings
Portion of gross borrowings not covered by the
sum of cash and short-term financial assets.
If a negative figure is shown, this indicates a
net cash position. Net borrowings = short-term
borrowings + long-term borrowings – cash –
short-term financial assets.
OHSAS 18000
OHSAS 18000 is an international occupational
health and safety management system
specification.