Reebok 2013 Annual Report Download - page 225

adidas Group
/
2013 Annual Report
Consolidated Financial Statements
221
2013
/
04.8
/
Notes
/
Notes to the Consolidated Statement of Financial Position
Finance leases
The Group also leases various premises for administration and warehousing which are classified as finance
leases.
The net carrying amount of these assets of € 13 million and € 19 million was included in property, plant and
equipment as at December 31, 2013 and 2012, respectively. For the year ending December 31, 2013, interest
expenses were € 0 million (2012: € 0 million) and depreciation expenses were € 5 million (2012: € 3 million).
Minimum lease payments for finance leases in 2013 include land leases with a remaining lease term of
99 years. The minimum lease payments under these contracts amount to € 12 million. The estimated amount
representing interest is € 9 million and the present value amounts to € 2 million.
The net present values and the minimum lease payments under these contracts over their remaining terms
up to 2018 and the land leases with a remaining lease term of 99 years are as follows:
Minimum lease payments for finance leases
(€ in millions) Dec. 31, 2013 Dec. 31, 2012
Lease payments falling due:
Within 1 year 4 5
Between 1 and 5 years 7 13
After 5 years 12 0
Total minimum lease payments 23 18
Less: estimated amount representing interest 10 0
Present value of minimum lease payments 13 18
Thereof falling due:
Within 1 year 4 5
Between 1 and 5 years 7 13
After 5 years 2 0
Service arrangements
The Group has outsourced certain logistics and information technology functions, for which it has entered into
long-term contracts. Financial commitments under these contracts mature as follows:
Financial commitments for service arrangements
(€ in millions) Dec. 31, 2013 Dec. 31, 2012
Within 1 year 89 81
Between 1 and 5 years 99 115
After 5 years 28 —
Total 216 196