Reebok 2012 Annual Report Download - page 251

adidas Group
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2012 Annual Report
Consolidated Financial Statements
229
2012
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04.8
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Notes
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Notes to the Consolidated Income Statement
Financial instruments for the hedging of interest rate risk
In 2011, outstanding interest rate swaps in the nominal amount of
€ 105 million had a maturity of less than one year and were classified
as cash flow hedges pursuant to IAS 39 to protect future cash flows
arising from private placements with variable interest rates. In 2011,
these interest rate swaps classified as cash flow hedges had a positive
fair value in the amount of € 0 million and a negative fair value of
€ 4 million. The negative fair value change of € 0 million for interest rate
swaps which were classified as cash flow hedges was booked in hedging
reserves in 2011. The amount that was reclassified from equity to the
income statement for the 2011 financial year was negative € 3 million.
These cash flow hedges matured in 2012. As at December 31, 2012, no
further interest rate swaps were outstanding.
Notes to the Consolidated
Income Statement
30 Other operating income
Other operating income consists of the following:
Other operating income (€ in millions)
Year ending
Dec. 31, 2012
Year ending
Dec. 31, 2011
Income from accounts receivable previously
written off 4 4
Income from release of accrued liabilities and
other provisions 37 27
Gains from disposal of fixed assets 1 0
Sundry income 83 66
Reversals of impairment losses for intangible and
tangible assets 2 1
Other operating income 127 98
In 2012 and 2011, sundry income partly related to income from insurance
compensations.
31 Other operating expenses
Other operating expenses include expenses for sales, marketing,
research and development, as well as for logistics and central
administration. In addition, they include impairment losses as well as
depreciation on tangible assets and amortisation on intangible assets
(except goodwill impairment losses), with the exception of depreciation
and amortisation which is included in the cost of sales.
Marketing working budget is a material component of other
operating expenses. The marketing working budget consists of
promotion and communication spending such as promotion contracts,
advertising, events and other communication activities. However, it
does not include marketing overhead expenses, which are presented in
marketing overheads. In 2012, marketing working budget accounted for
25% (2011: 25%) of the total other operating expenses.
Expenses for central administration include the functions IT,
Finance, Legal, Human Resources, Facilities & Services as well as
General Management.
Depreciation and amortisation expense for tangible and intangible
assets (except goodwill impairment losses) and impairment losses
were € 266 million and € 252 million for the years ending December 31,
2012 and 2011, respectively. Thereof, € 3 million and € 3 million were
recorded within the cost of sales as they are directly assigned to the
production costs.
Other operating expenses (€ in millions)
Year ending
Dec. 31, 2012
Year ending
Dec. 31, 2011 1)
Marketing working budget 1,502 1,362
Sales working budget 304 338
Marketing overhead 2) 445 402
Sales force 2) 1,885 1,673
Logistics 2) 750 678
Research and development 2) 128 115
Central administration 2) 1,136 999
Other operating expenses 6,150 5,567
Thereof:
Depreciation, amortisation and impairment losses 263 249
1) Restated according to IAS 8, see Note 03.
2) Including personnel and administration expenses.