Reebok 2012 Annual Report Download - page 231

adidas Group
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2012 Annual Report
Consolidated Financial Statements
209
2012
Notes
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04.8
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f) Other adjustments
Some balance sheet items as at December 31, 2011 and for previous
years could not be substantiated and therefore were written off.
Balance sheet items written off (€ in millions)
Jan. 1, 2011 Dec. 31, 2011
Accounts payable 3 1
Other current provisions 1 2
Other current liabilities – 1
Total equity (4) (4)
Net sales – (1)
Cost of sales – (1)
Other operating expenses – 2
In addition, the following consolidated balance sheet reclassifications
were recorded:
Consolidated statement of financial position reclassifications
(€ in millions)
Jan. 1, 2011 Dec. 31, 2011
Accounts receivable 19 13
Other current financial assets (19) (13)
Other current assets – (1)
Accounts payable – 1
g) Non-controlling interest
6.85% of the shares of Reebok India are held by a minority shareholder.
As a result of the adjustments described in this Note, the non-controlling
interest also had to be adjusted accordingly.
Earnings per share
As a result of the above-mentioned adjustments, basic and diluted
earnings per share for the 2011 financial year declined from € 3.20 to
€ 2.93.
04 Acquisition/disposal of subsidiaries as
well as assets and liabilities
Effective March 30, 2012, adidas AG acquired the remaining 10% share
in its German subsidiary GEV Grundstücksgesellschaft Herzogenaurach
mbH & Co. KG, which was formerly reported as a non-controlling interest
in other liabilities in compliance with IAS 32 “Financial Instruments:
Presentation”
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SEE NOTE 27. The purchase price of € 7 million was paid
at the beginning of April 2012.
Effective June 1, 2012, Taylor Made Golf Co., Inc. completed the
acquisition of Adams Golf, Inc. (“Adams Golf”). Based in Plano, Texas
(USA), Adams Golf designs, assembles and distributes golf clubs. With
this acquisition, the adidas Group intends to further improve its market
position within the golf industry. The entire business of Adams Golf was
purchased for a purchase price of US $ 89 million in cash.
The acquisition had the following effect on the Group’s assets and
liabilities, based on a preliminary purchase price allocation:
Net assets of Adams Golf, Inc. including subsidiaries at the
acquisition date (€ in millions)
Pre-acquisition
carrying amounts
Fair value
adjustments
Recognised
values on
acquisition
Cash and cash equivalents 14 – 14
Accounts receivable 28 (0) 28
Inventories 17 2 19
Other current assets 0 – 0
Property, plant and equipment 1 – 1
Trademarks – 11 11
Other intangible assets 1 3 4
Deferred tax assets 9 (2) 7
Other non-current assets 0 – 0
Accounts payable (5) – (5)
Other current provisions (4) – (4)
Current accrued liabilities (3) – (3)
Other current liabilities (0) – (0)
Deferred tax liabilities – (6) (6)
Net assets 58 8 66
Goodwill arising on acquisition 5
Purchase price settled in cash 71
Less: cash and cash equivalents
acquired (14)
Cash outflow on acquisition 57