Reebok 2010 Annual Report Download - page 205

Consolidated Financial Statements Notes Notes to the Consolidated Statement of Financial Position 201
Other provisions 19
Other provisions consist of the following:
Other provisions
€ in millions
Jan. 1, 2010
Currency
translation
differences Usage Reversals Additions Transfers Dec. 31, 2010
Thereof
non-
current
Marketing 45 0 17 1 36 — 63 0
Employee benefits 55 2 34 1 26 1 49 11
Returns, allowances, warranty 105 13 68 2 123 — 171 —
Taxes, other than income taxes 12 0 8 0 14 — 18 0
Sundry 132 5 24 1 84 2 198 18
Total other provisions 349 20 151 5 283 3 499 29
Marketing provisions mainly consist of provisions for promotion contracts.
Provisions for employee benefits mainly consist of provisions for profit-sharing plans. With
regard to provisions for early retirement, claims for reimbursement in an amount of € 2 million
(December 31, 2009: € 3 million) are shown under other non-current assets.
Provisions for returns, allowances and warranty primarily arise due to bonus agreements
with customers and the obligation of fulfilling customer claims with regard to the return of faulty
products sold by the Group. The amount of the provision follows the historical development of
returns, allowances and warranty as well as current agreements.
Provisions for taxes other than income taxes mainly relate to value added tax, real estate tax and
motor vehicle tax.
Sundry provisions mainly include provisions for customs risks as well as anticipated losses
from purchases and other transactions, and contingent losses from pending lawsuits.
Management follows past experience from similar transactions when estimating the amounts
recognised as other provisions while considering all evidence from events until the preparation of
the consolidated financial statements.
Accrued liabilities 20
Accrued liabilities consist of the following:
Accrued liabilities
€ in millions
Jan. 1, 2010
Currency
translation
differences Usage Reversals Additions Transfers Dec. 31, 2010
Thereof
non-
current
Goods and services not yet invoiced 252 16 197 6 297 1 363 0
Marketing and sales 154 10 101 3 135 0 195 10
Payroll and commissions 162 11 97 9 189 (1) 255 25
Other accruals 79 1 31 0 22 (3) 68 4
Total accrued liabilities 647 38 426 18 643 (3) 881 39
Marketing accrued liabilities mainly consist of accruals for distribution, such as discounts, rebates
and sales commissions.
Accrued liabilities for payroll and commissions mainly consist of accruals for outstanding
salary payments, such as bonuses and overtime, as well as outstanding vacation.
Other accrued liabilities partly include accruals for interest.