Reebok 2010 Annual Report Download - page 211

Consolidated Financial Statements Notes Notes to the Consolidated Statement of Financial Position 207
Distributable profits and dividends Distributable profits and dividends
Distributable profits to shareholders are determined by reference to the retained earnings of
adidas AG and calculated under German Commercial Law.
The dividend for 2009 was € 0.35 per share (total amount: € 73 million), approved by the 2010
Annual General Meeting. The Executive Board of adidas AG will propose to shareholders a dividend
payment of € 0.80 per dividend-entitled share for the year 2010 to be made from retained earnings
of € 368 million reported as at December 31, 2010. The subsequent remaining amount will be
carried forward.
209,216,186 dividend-entitled shares exist as at December 31, 2010, which would lead to a
dividend payment of € 167 million.
Non-controlling interests 26
This line item within equity comprises the non-controlling interests in several subsidiaries, which
are not directly or indirectly attributable to adidas AG.
Non-controlling interests are assigned to seven subsidiaries as at December 31, 2010 and 2009,
respectively see Shareholdings of adidas AG/Attachment II to these Notes. These subsidiaries were partly
acquired in connection with the acquisition of Reebok and partly through purchases or foundations
in the last years.
In compliance with IAS 32 “Financial Instruments: Presentation”, certain non-controlling interests
are not reported within non-controlling interests. These include non-controlling interests of GEV
Grundstücksgesellschaft Herzogenaurach mbH & Co. KG (Germany) as the company is a limited
partnership. The fair value of these non-controlling interests is shown within other liabilities and
the result for these non-controlling interests is reported within financial expenses see Note 32.
Leasing and service arrangements 27
Operating leases Operating leases
The Group leases primarily retail stores as well as offices, warehouses and equipment. The
contracts regarding these leases with expiration dates of between one and fourteen years partly
include renewal options and escalation clauses. Rent expenses, which partly depend on net sales,
amounted to € 544 million and € 480 million for the years ending December 31, 2010 and 2009,
respectively.
Future minimum lease payments for minimum lease durations on a nominal basis are as
follows:
Minimum lease payments for operating leases
€ in millions
Dec. 31, 2010 Dec. 31, 2009
Within 1 year 404 360
Between 1 and 5 years 659 619
After 5 years 331 320
Total 1,394 1,299
Finance leases Finance leases
The Group also leases various premises for administration, warehousing, research and
development as well as production, which are classified as finance leases.
The net carrying amount of these assets of € 7 million and € 7 million was included in property,
plant and equipment as at December 31, 2010 and 2009, respectively. For the year ending
December 31, 2010, interest expenses were € 1 million (2009: € 1 million) and depreciation
expenses were € 3 million (2009: € 1 million).
The minimum lease payments under these contracts over their remaining terms up to 2016 and
their net present values are as follows:
Minimum lease payments for finance leases
€ in millions
Dec. 31, 2010 Dec. 31, 2009
Lease payments falling due:
Within 1 year 2 1
Between 1 and 5 years 3 1
After 5 years 0 1
Total minimum lease payments 5 3
Less: estimated amount representing interest 0 0
Present value of minimum lease payments 5 3
Thereof falling due:
Within 1 year 2 1
Between 1 and 5 years 3 1
After 5 years 0 1
Service arrangements Service arrangements
The Group has outsourced certain logistics and information technology functions, for which it
has entered into long-term contracts. Financial commitments under these contracts mature as
follows:
Financial commitments for service arrangements
€ in millions
Dec. 31, 2010 Dec. 31, 2009
Within 1 year 40 42
Between 1 and 5 years 65 59
After 5 years 44 —
Total 149 101