Reebok 2013 Annual Report Download - page 211

adidas Group
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2013 Annual Report
Consolidated Financial Statements
207
2013
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04.8
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Notes
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Notes to the Consolidated Statement of Financial Position
At December 31, 2013, part of the assets of GEV Grundstücksgesellschaft Herzogenaurach mbH & Co. KG, which
mainly comprise land amounting to € 11 million (2012: € 11 million), is still presented as held for sale following a
signed contract of sale, which is still awaiting certain conditions to be fulfilled that are not in the area of influence
of the adidas Group.
Property, plant and equipment consist of the following:
Property, plant and equipment
(€ in millions) Dec. 31, 2013 Dec. 31, 2012
Land, land leases, buildings and leasehold improvements 802 670
Technical equipment and machinery 254 199
Other equipment as well as furniture and fixtures 1,202 1,204
2,258 2,073
Less: accumulated depreciation and impairment losses 1,181 1,167
1,077 906
Construction in progress, net 161 189
Property, plant and equipment, net 1,238 1,095
Depreciation expenses were € 234 million and € 214 million for the years ending December 31, 2013 and 2012,
respectively
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SEE NOTE 30. Impairment losses amounted to € 4 million and € 5 million for the years ending
December 31, 2013 and 2012, respectively
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SEE NOTE 30. These are related to assets within other equipment as
well as furniture and fixtures, mainly in the Group’s own-retail activities, for which contrary to expectations there
will be an insufficient flow of future economic benefits. In 2013, reversals of impairment losses were recorded in
an amount of € 2 million (2012: € 2 million).
The decrease in construction in progress mainly relates to the completion of a new warehouse facility in
Germany.
For details see Attachment I to the consolidated financial statements
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SEE STATEMENT OF MOVEMENTS OF
INTANGIBLE AND TANGIBLE ASSETS, P. 238.
Goodwill primarily relates to the Group’s acquisitions of the Reebok and TaylorMade businesses as well as
acquisitions of subsidiaries, primarily in the United States, Australia/New Zealand, the Netherlands, Denmark
and Italy.
Goodwill
(€ in millions) Dec. 31, 2013 Dec. 31, 2012
Goodwill, gross 1,533 1,568
Less: accumulated impairment losses (329) (287)
Goodwill, net 1,204 1,281
The majority of goodwill which primarily relates to the acquisition of the Reebok business in 2006 is denominated
in US dollars. A currency translation effect of negative € 25 million and negative € 12 million was recorded for the
years ending December 31, 2013 and 2012, respectively.
The Group determines whether goodwill impairment is necessary at least on an annual basis. This requires an
estimation of the value in use of the cash-generating units to which the goodwill is allocated. Estimating the value
in use requires the Group to make an estimate of the expected future cash flows from the cash-generating units
and also to choose a suitable discount rate in order to calculate the present value of those cash flows.
Goodwill impairment losses for 2013 amounted to € 52 million (2012: € 265 million). The goodwill impairment
amount related to 2013 comprises an impairment loss within the Wholesale segment of € 23 million (2012:
€ 173 million) and an impairment loss within the Retail segment of € 29 million. In 2012, € 92 million was impaired
within the Other Businesses segment
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SEE ALSO NOTE 02.
10
Assets/liabilities
classified as held for sale
11
Property, plant and
equipment
12
Goodwill