Reebok 2012 Annual Report Download - page 238

adidas Group
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2012 Annual Report
Consolidated Financial Statements
216
2012
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04.8
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Notes
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Notes to the Consolidated Statement of Financial Position
The amounts disclosed as gross borrowings represent outstanding
borrowings under the following arrangements with aggregated
expiration dates as follows:
Gross borrowings as at December 31, 2012 (€ in millions)
Up to
1 year
Between
1 and 3
years
Between
3 and 5
years
After
5 years
Total
Bank borrowings 59 – – – 59
Private placements 221 145 114 – 480
Eurobond – 499 – – 499
Convertible bond – – 449 – 449
Total 280 644 563 – 1,487
The above table includes a Eurobond issued on July 6, 2009 in a nominal
amount of € 500 million and with a maturity of five years. The Eurobond
with an annual coupon of 4.75% was issued in denominations of € 1,000
each and was priced with a spread of 200 basis points above the
respective euro mid-swap. The issue was fixed at 99.865%.
In addition, gross borrowings include a convertible bond for an
aggregate nominal amount of € 500 million divided into denominations
of € 200,000 which was issued on March 21, 2012. The bond has a
maximum maturity (including prolongation options) until June 14, 2019.
The coupon of the bond amounts to 0.25% and is payable annually,
commencing on June 14, 2013. The bond is, at the option of the respective
holder, convertible at any time from and including May 21, 2012, up
to and including June 5, 2019, into up to 5.99 million new or existing
adidas AG shares. The convertible bond has a conversion premium
of 40% above the reference price of € 59.61, resulting in a current
conversion price of € 83.46 per share. On June 14, 2017, the bondholders
have the right to call the bond at nominal value plus interest accrued
on the nominal amount. adidas AG is entitled to redeem the remaining
bonds in whole if, at any time, the aggregate principal amount of bonds
outstanding falls below 15% of the aggregate principal amount of the
bonds that were initially issued. Furthermore, as of July 14, 2017 at the
earliest, adidas AG is entitled to redeem the bonds in whole if on 20 of
30 consecutive trading days, the share price of adidas AG exceeds the
current conversion price of € 83.46 by at least 30%.
According to IAS 32 “Financial Instruments: Presentation”, the
conversion right represented in the convertible bond constitutes a
financial instrument which is covered in the capital reserve in an
amount of € 55 million after deduction of the issuance cost. The liability
component amounts to € 441 million after deduction of the issuance
cost and is shown within long-term borrowings. The difference of
€ 59 million compared to the nominal amount of € 500 million is accrued
as interest expense of the financial liability over the expected maturity
of the convertible bond using the “effective interest method”. As at
December 31, 2012, the financial liability amounted to € 449 million.
Gross borrowings as at December 31, 2011 (€ in millions)
Up to
1 year
Between
1 and 3
years
Between
3 and 5
years
After
5 years
Total
Bank borrowings 126 – – – 126
Private placements 163 281 211 – 655
Eurobond – 499 – – 499
Total 289 780 211 – 1,280
For further details on future cash outflows
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SEE RISK AND OPPORTUNITY
REPORT, P. 164.
19 Other current financial liabilities
Other current financial liabilities consist of the following:
Other current financial liabilities (€ in millions)
Dec. 31, 2012 Dec. 31, 2011 1)
Interest rate derivatives – 4
Currency options 5 6
Forward contracts 52 22
Finance lease obligations 5 3
Sundry 21 31
Other current financial liabilities 83 66
1) Restated according to IAS 8, see Note 03.
Information regarding interest rate derivatives, currency options and
forward contracts is also included in these Notes
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SEE NOTE 29. For
information regarding finance lease obligations
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SEE NOTE 28.