Reebok 2013 Annual Report Download - page 236

adidas Group
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2013 Annual Report
Consolidated Financial Statements
232
2013
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04.8
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Notes
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Notes – Additional Information
Notes – Additional Information
The Group operates predominantly in one industry segment – the design, distribution and marketing of athletic
and sports lifestyle products.
Following the Group’s internal management reporting and in accordance with the definition of IFRS 8
“Operating Segments”, six operating segments have been identified: Wholesale, Retail, TaylorMade-adidas Golf,
Rockport, Reebok-CCM Hockey and Other Centrally Managed Brands. According to the criteria of IFRS 8 for
reportable segments, the business segments Wholesale and Retail are reported separately, while the remaining
are aggregated under Other Businesses due to their only subordinate materiality.
The Wholesale segment comprises all business activities relating to the distribution of adidas and Reebok
products to retail customers.
The Retail segment comprises all business activities relating to the sale of adidas and Reebok products
directly to end consumers through own retail and own e-commerce platforms.
The operating segment TaylorMade-adidas Golf comprises the brands TaylorMade, adidas Golf, Adams Golf
and Ashworth.
The Other Centrally Managed Brands segment primarily includes the business activities of the labels Y-3 and
Porsche Design Sport as well as the business activities of the brand Five Ten in the outdoor action sports sector.
Furthermore, the segment also comprises the German own-retail activities of the adidas NEO label.
Certain centralised Group functions do not meet the definition of IFRS 8 for a reportable operating segment.
This includes functions such as central treasury, global sourcing as well as other headquarter departments.
Assets, liabilities, income and expenses relating to these corporate functions are presented together with other
non-allocable items and intersegment eliminations in the reconciliations.
The chief operating decision maker for the adidas Group has been defined as the joint Executive Board of
adidas AG.
There are no intersegment sales between the reportable segments. Accounting and valuation policies applied
for reporting segmental information are the same as those used for the adidas Group
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SEE NOTE 02.
The results of the operating segments are reported in the line item ”Segmental operating profit”. This is
defined as gross profit minus costs directly attributable to the segment or the group of segments (primarily sales
and logistics costs) before marketing working budget expenditures and operating overhead costs not directly
attributable.
Segmental assets include accounts receivable as well as inventories. Only these items are reported to the
chief operating decision maker on a regular basis. Depreciation, amortisation, impairment losses (except for
goodwill) and reversals of impairment losses as well as capital expenditures for tangible and intangible assets
are part of the segmental reporting, even though segmental assets do not contain tangible and intangible assets.
Depreciation and amortisation as well as impairment losses and reversals of impairment losses not directly
attributable to a segment or a group of segments are presented under HQ/Consolidation in the reconciliations.
Segmental liabilities only contain accounts payable from operating activities as there are no other liability
items reported regularly to the chief operating decision maker.
Interest income and interest expenses as well as income taxes are not allocated to the reportable segments
and are not reported separately to the chief operating decision maker.
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Segmental information