Reebok 2009 Annual Report Download - page 230

226 ADDITIONAL INFORMATION Glossary
Segment
Also Business Segment. Units within a
company that have profit and loss
responsibility. The adidas Group is currently
divided into six major business segments:
Wholesale, Retail, Taylor-Made adidas Golf,
Rockport, Reebok-CCM Hockey and Other
centrally managed brands.
Segmental operating margin
Relation between segmental operating
profit and sales of the segment or the group
of segments (segmental operating profit/
segmental sales).
Segmental operating profit
The operating profit of a segment or a group of
segments, defined as gross profit minus costs
directly attributable to the segment or the
group of segments before Marketing Working
Budget expenditures and operating overhead
costs not directly attributable.
Sell-through
An indicator of how fast retailers are selling a
particular product to the consumer.
Shareholder value
A management concept that focuses strategic
and operational decision-making on steadily
increasing a company’s value for shareholders.
Shop-in-shop
adidas, Reebok or Rockport area within a
larger store. The concept may be operated
by the store or the adidas Group depending
on individual arrangements. The goal of this
distribution method is to give consumers
a similar experience to an own-retail
environment, albeit on a smaller scale.
Swaps
A derivative in which two counterparties agree
to exchange one stream of cash flows against
another stream.
Tax rate
Indicates the tax rate paid by a company.
Calculated by dividing taxes by income before
taxes.
Top- and bottom-line growth
A company’s bottom line is its net income, or
the “bottom” figure on a company’s income
statement. More specifically, the bottom line
is a company’s income after all expenses have
been deducted from revenues. The top line
refers to a company’s sales or revenues.
Top-down, bottom-up
Specific concept for information and knowledge
processing. Information and empowerment
of management decisions is delegated from
top to bottom in a first step. After going into
more detail on the bottom level, the final
information/decision is transported back to
the top.
Toxproof mark/TÜV Rheinland Group
The Toxproof mark is a safety mark issued
by TÜV Rheinland, especially for testing the
quantities of toxins in products.
United States Golf Association (USGA)
The USGA is the United States’ national
association of golf courses, clubs and facilities
and the governing body of golf for the USA and
Mexico see also Royal and Ancient.
VOC (Volatile Organic Compounds)
Volatile organic compounds (VOCs) are organic
chemical compounds that can vapourise into
the air but may also be harmful, causing
breathing and health problems. VOCs are
by-products of the shoe manufacturing
process.
Weighted average cost of capital
Calculation of the cost of capital according to
the debt/equity structure, utilising a weighted
average cost of capital (WACC) formula. The
cost of equity is typically computed utilising a
risk-free rate, market risk premium and a beta
factor. The cost of debt is calculated through
the risk-free rate, credit spread and average
tax rate see also Beta coefficient.
Working capital
A company’s short-term disposable capital
used to finance the day-to-day operations.
Working capital = total current assets – total
current liabilities see also Operating Working
Capital.
Working capital turnover
Shows how often a working capital item was
used in and replaced by the generation of sales
in the period under review. The ratio shows
how long working capital is tied up and thus is
an indicator of the volume of capital needed to
generate sales. The higher the ratio, the more
positive it is deemed to be.
Working capital turnover = net sales / working
capital.
World Business Council for Sustainable
Development (WBCSD)
The WBCSD is a global association of
some 200 international companies dealing
exclusively with business and sustainable
development see also www.wbcsd.org.
World Federation of the Sporting
Goods Industry (WFSGI)
The WFSGI is an independent non-profit
organisation association formed by sporting
goods brands, manufacturers, suppliers,
retailers and other sporting industry-related
businesses. It is the world authoritative body
for the sporting goods industry and is officially
recognised by the International Olympic
Committee (IOC) as the industry representative
see also www.wfsgi.org.