Reebok 2012 Annual Report Download - page 275

adidas Group
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2012 Annual Report
Additional Information
253
2012
Glossary
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05.2
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Licensees
Companies that have the authorisation to use the
name of a brand or business for the production and
sale of products. For example, for adidas, licensed
products include cosmetics, watches and eyewear,
for Reebok, fitness equipment.
Lien
The right to take and hold or sell the asset of a
debtor as security or payment for a debt.
Liquidity I, II, III
The liquidity ratio indicates how quickly a company
can liquidate its assets to pay for current liabilities.
Liquidity I:
((Cash + short-term financial assets) / current
liabilities) × 100.
Liquidity II:
((Cash + short-term financial assets + accounts
receivable) / current liabilities) × 100.
Liquidity III:
((Cash + short-term financial assets + accounts
receivable + inventories) / current liabilities) × 100.
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M
Market capitalisation
Total market value of all shares outstanding.
Market capitalisation = number of shares
outstanding × current market price.
Marketing working budget (MWB)
Promotion and communication spending including
sponsorship contracts with teams and individual
athletes, as well as advertising, events and other
communication activities, but excluding marketing
overhead expenses. As marketing working budget
expenses are not distribution channel specific,
they are not allocated to the Group’s operating
segments.
Mature markets
Developed countries which have highly
industrialised economies, high income levels and
in which most people have a high standard of living.
For the adidas Group, mature markets are the
high-income countries of Western Europe, North
America and also Japan.
Mono-branded stores
adidas, Reebok or Rockport branded stores that
are not operated or owned by the adidas Group
but by franchise partners. This concept is used
especially in the emerging markets such as China,
benefiting from local expertise of the respective
franchise partners
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SEE ALSO FRANCHISING.
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N
Natural hedges
Offset of currency risks that occurs naturally as a
result of a company’s normal operations, without
the use of derivatives. For example, revenue
received in a foreign currency and used to pay
known commitments in the same foreign currency.
Net borrowings/Net cash
Net borrowings is the portion of gross borrowings
not covered by the sum of cash and short-term
financial assets. Net cash is when the sum of cash
and short-term financial assets exceeds gross
borrowings.
Net borrowings/net cash = short-term borrowings
+ long-term borrowings – cash – short-term
financial assets.
Non-controlling interests
Part of net income or equity which is not
attributable to the shareholders of the reporting
company as it relates to outside ownership
interests in subsidiaries that are consolidated
with the parent company for financial reporting
purposes.
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O
OHSAS 18000
OHSAS 18000 is an international occupational
health and safety management system
specification.
ÖKO-Tex Standard 100
An international testing and certification system
for textiles, defining and limiting the use of certain
chemicals.
Operating cash flow
Operating cash flow is comprised of operating
profit, change in operating working capital and
net investments.
Operating cash flow = operating profit +/– change
in operating working capital +/– net investments
(capital expenditure less depreciation and
amortisation).
Operating lease
Method of leasing assets over periods less than
the expected lifetime of those assets. An operating
lease is accounted for by the lessee without
showing an asset or a liability on the balance sheet.
Periodic payments are accounted for by the lessee
as operating expenses for the period.
Operating overheads
Expenses which are not directly attributable to
the products or services sold, such as costs for
distribution, marketing overhead costs, logistics,
research and development, as well as general and
administrative costs, but not including costs for
promotion, advertising and communication.
Operating working capital
A company’s short-term disposable capital which
is used to finance its day-to-day business. In
comparison to working capital, operating working
capital does not include non-operational items
such as financial assets and taxes.
Operating working capital = accounts receivable
+ inventories – accounts payable
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SEE ALSO
WORKING CAPITAL.
Option
Financial instrument which ensures the right
to purchase (call option) or to sell (put option) a
particular asset (e.g. shares or foreign exchange)
at a predetermined price (strike price) on or before
a specific date.