Reebok 2010 Annual Report Download - page 240

236 Additional Information Glossary
Glossary
A
AFIRM (Apparel and Footwear International
Restricted Substances List Management
Working Group)
A centre of excellence comprising experts
whose aim it is to reduce the use and impact
of harmful substances in the apparel and
footwear supply chains see also www.afirm-
group.org.
American Depositary Receipt (ADR)
US-traded negotiable certificate of a foreign-
based company held by a US bank that entitles
the holder to all dividends and rights of the
underlying stock. ADRs provide a way for
US-based investors to invest in foreign-based
companies by buying their shares in the USA
instead of through an overseas exchange.
B
Backlogs
Also called order backlogs. The value of orders
received for future delivery. Most retailers’
orders are received six to nine months in
advance.
Basic Earnings Per Share (Basic EPS)
Performance indicator used to gauge a
company’s earnings per share, based on the
number of shares outstanding (excluding stock
options, as well as options and conversion
rights related to a convertible bond).
Basic EPS = net income / weighted average number
of shares outstanding during the year
see also Diluted Earnings Per Share.
Beta coefficient
Indicates a stock’s relative risk. A beta
coefficient of more than one indicates that the
stock has a higher risk than the overall market.
Conversely, a beta coefficient of less than one
indicates a lower risk.
Better Cotton Initiative
The Better Cotton Initiative (BCI) was created
through a collaboration between the World
Wildlife Fund (WWF) and a wide range of
stakeholders involved in the cotton supply
chain. BCI aims to promote measurable
improvements in the key environmental
and social impacts of cotton cultivation
worldwide to make it more economically,
environmentally, and socially sustainable
see also www.bettercotton.org.
C
CAD
Computer-aided design (CAD) is the use of
computer technology for the process of design
and design documentation.
Capital expenditure
Total cash expenditure used for the purchase
of tangible and intangible assets, excluding
acquisitions and finance leases.
Celliant fibres
Celliant is a component for use in the textile
industry. It is a fabric material that modifies
visible and infrared light, redirecting this
energy back to the body to increase blood flow
and blood oxygen levels.
Commercial paper
Tradable unsecured promissory notes issued
for the purpose of short-term financing.
Commercial paper is issued on an ongoing,
revolving basis with maturities typically
between seven days and 12 months or more.
Concession corners
Retail space that is fully operated by one brand
of the adidas Group and is part of a larger sales
area operated by a retail partner.
Consumer price index (CPI)
Measure of the average price of consumer
goods and services purchased by households.
Determined by measuring the price of a
standard group of goods meant to represent
the typical market basket of a typical urban
consumer. The percentage change in the CPI is
a measure of inflation.
Controlled space
Controlled space includes own-retail business,
mono-branded stores, shop-in-shops, joint
ventures with retail partners and co-branded
stores. Controlled space offers a high level of
brand control and ensures optimal product
offering and presentation according to brand
requirements.
Corporate Governance
Distribution of rights and responsibilities
among the primary stakeholders in a company,
in particular shareholders, the Executive Board
and the Supervisory Board.
Cost of sales
The amount the Group pays to third parties
for expenses associated with producing and
delivering our products. Own-production
expenses are also included in the Group’s cost
of sales.
Credit default swap
A credit default swap (CDS) is a swap contract
in which the buyer of the CDS makes a series
of payments to the seller and, in exchange,
receives a payoff if a credit instrument
(typically a bond or loan) undergoes a defined
“Credit Event”, often described as a default
(fails to pay).
Credit spread
Risk premium which represents the yield
difference between risk-free government
bonds and corporate bonds with the same
duration. A potential investor demands an
additional yield (risk premium = credit spread)
for the higher risk of default with corporate
bonds versus government bonds.
Currency-neutral
Financial figures translated at prior-year
exchange rates. This indicates increases or
decreases to reported figures by eliminating
variances arising from currency translation,
thus reflecting the underlying business
performance.
Customer relationship management (CRM)
Capabilities and methodologies used by a
company with its customers to systematically
design and build customer relationships and
processes.
D
D&O liability insurance
Directors and Officers (D&O) liability insurance.
Protects directors and officers from liability
and litigation from actions against them,
claiming wrongdoing in connection with the
company’s business.
DAX-30 (DAX)
The DAX (Deutscher Aktienindex) is a blue chip
stock market index consisting of the 30 major
German companies trading on the Frankfurt
Stock Exchange.
Days of sales outstanding (DSO)
Average time of receipt of outstanding
payments from customers.