Reebok 2011 Annual Report Download - page 205

adidas Group
2011 Annual Report
CONSOLIDATED FINANCIAL STATEMENTS
201
2011
201
2011
04.8 Notes Notes to the Consolidated Statement of Financial Position
26 Non-controlling interests
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, 2011 and 2010, respectively SEE ATTACHMENT II TO THE CONSOLI-
DATED FINANCIAL STATEMENTS, SHAREHOLDINGS OF ADIDAS AG, HERZOGENAURACH, P. 218
. 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: Presen-
tation”, 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 .
27 Leasing and service arrangements
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 1 and 14 years partly include renewal options and
escalation clauses. Rent expenses, which partly depend on net sales,
amounted to € 608 million and € 544 million for the years ending
December 31, 2011 and 2010, 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, 2011 Dec. 31, 2010
Within 1 year 449 404
Between 1 and 5 years 778 659
After 5 years 331 331
Total 1,558 1,394
Finance leases
The Group also leases various premises for administration and ware-
housing which are classified as finance leases.
The net carrying amount of these assets of € 9 million and
€ 7 million was included in property, plant and equipment as at
December 31, 2011 and 2010, respectively. For the year ending
December 31, 2011, interest expenses were € 0 million (2010:
€ 1 million) and depreciation expenses were € 2 million (2010:
€ 3 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, 2011 Dec. 31, 2010
Lease payments falling due:
Within 1 year 3 2
Between 1 and 5 years 4 3
After 5 years – 0
Total minimum lease payments 7 5
Less: estimated amount representing interest 0 0
Present value of minimum lease payments 7 5
Thereof falling due:
Within 1 year 3 2
Between 1 and 5 years 4 3
After 5 years – 0
Service arrangements
The Group has outsourced certain logistics and information tech-
nology 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, 2011 Dec. 31, 2010
Within 1 year 39 40
Between 1 and 5 years 44 65
After 5 years 26 44
Total 109 149