Reebok 2010 Annual Report Download - page 201

Consolidated Financial Statements Notes Notes to the Consolidated Statement of Financial Position 197
Inventories 08
Inventories by major classification are as follows:
Inventories
€ in millions
Dec. 31, 2010 Dec. 31, 2009
Gross
value
Allowance
for
obsoles-
cence Net value Gross value
Allowance
for
obsoles-
cence Net value
Merchandise and finished
goods on hand 1,538 96 1,442 1,197 73 1,124
Goods in transit 641 — 641 317 — 317
Raw materials 23 1 22 26 2 24
Work in progress 14 — 14 6 — 6
Inventories 2,216 97 2,119 1,546 75 1,471
Goods in transit mainly relate to shipments of finished goods and merchandise from suppliers in
Asia to subsidiaries in Europe, Asia and the Americas. The carrying amount of inventories which
are measured at fair value less costs to sell amounts to € 195 million and € 355 million as at
December 31, 2010 and 2009, respectively see also Note 2.
Other current assets 09
Other current assets consist of the following:
Other current assets
€ in millions
Dec. 31, 2010 Dec. 31, 2009
Prepaid expenses 200 208
Tax receivables other than income taxes 122 84
Sundry 70 72
Other current assets, gross 392 364
Less: accumulated allowances 2 4
Other current assets, net 390 360
Prepaid expenses relate mainly to promotion agreements and service contracts as well as rents.
Assets/liabilities classified as held for sale 10
Part of the assets of GEV Grundstücksgesellschaft Herzogenaurach mbH & Co. KG and of
Immobilieninvest und Betriebsgesellschaft Herzo-Base GmbH & Co. KG are presented as
held for sale following a contract signed in 2010. At December 31, 2010, the disposal groups
contained assets amounting to € 30 million (2009: € 53 million). The prior year amount includes
certain assets which have been reclassified to property, plant and equipment due to a change in
conditions. For 2009, depreciation in the amount of € 0 million has been reflected for the assets
reclassified to property, plant and equipment.
In addition, a warehouse in an amount of € 17 million in the Netherlands continues to be
presented as held for sale due to a new Memorandum of Understanding. In 2010, impairment
losses in the amount of € 6 million related to this warehouse were recognised in other operating
expenses.
Due to a Memorandum of Understanding signed in 2009, assets of € 51 million in the USA
were classified as held for sale as at December 31, 2009. In 2010, these have been reclassified to
property, plant and equipment due to a change in conditions. For 2009, depreciation in the amount
of € 0 million has been reflected for the assets reclassified to property, plant and equipment.
At December 31, 2009, the previous Reebok warehouse in the UK was classified as held for
sale as a result of the intention to sell and the existence of purchase offers (€ 2 million). The
warehouse was sold in the third quarter of 2010.
Assets classified as held for sale
€ in millions
Dec. 31, 2010 Dec. 31, 2009
Accounts receivable and other current assets 0 18
Property, plant and equipment, net 47 108
Total 47 126
In 2010 and 2009, no material liabilities classified as held for sale have been reported.