Reebok 2013 Annual Report Download - page 233

adidas Group
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2013 Annual Report
Consolidated Financial Statements
229
2013
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04.8
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Notes
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Notes to the Consolidated Income Statement
Financial expenses
(€ in millions) Year ending
Dec. 31, 2013
Year ending
Dec. 31, 2012
Interest expense on financial instruments measured at amortised cost 73 97
Interest expense on financial instruments at fair value through profit or loss 0 0
Interest expense on other provisions and non-financial liabilities 0 0
Net foreign exchange losses 18 7
Other 3 1
Financial expenses 94 105
Interest income from financial instruments, measured at amortised cost, mainly consists of interest income from
bank deposits and loans.
Interest income/expense from financial instruments at fair value through profit or loss mainly includes
interest payments from investment funds as well as net interest payments from interest derivatives not being
part of a hedging relationship. Unrealised gains/losses from fair value measurement of such financial assets are
shown in other financial income or expenses.
Interest expense on financial instruments measured at amortised cost mainly includes interest on borrowings
and effects from using the “effective interest method”.
Interest expense on other provisions and non-financial liabilities particularly includes effects from
measurement of other provisions at present value and interest on non-financial liabilities such as tax payables.
Other financial expenses include impairment losses on other financial assets amounting to € 3 million for the
year ending December 2013 (2012: € 1 million).
Also included in other financial expenses are non-controlling interests, which are not recorded in equity
according to IAS 32 “Financial Instruments: Presentation”
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SEE NOTE 26.
Information regarding the Group’s available-for-sale investments, borrowings and financial instruments is
also included in these Notes
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SEE NOTES 05, 14, 17 AND 28.
adidas AG and its German subsidiaries are subject to German corporate and trade taxes. For the years ending
December 31, 2013 and 2012, the statutory corporate income tax rate of 15% plus a surcharge of 5.5% thereon is
applied to earnings. The municipal trade tax is approximately 11.4% of taxable income.
For non-German subsidiaries, deferred taxes are calculated based on tax rates that have been enacted or
substantively enacted by the closing date.
Deferred tax assets and liabilities
Deferred tax assets and liabilities are offset if they relate to the same fiscal authority. The following deferred tax
assets and liabilities, determined after appropriate offsetting, are presented in the consolidated statement of
financial position:
Deferred tax assets/liabilities
(€ in millions) Dec. 31, 2013 Dec. 31, 2012
Deferred tax assets 486 528
Deferred tax liabilities (338) (368)
Deferred tax assets, net 148 160
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Income taxes