Reebok 2013 Annual Report Download - page 259

adidas Group
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2013 Annual Report
Additional Information
255
2013
Glossary
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05.2
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Socially responsible investment (SRI)
SRIs evaluate a company’s efforts through in-depth
analysis of sustainability programmes and consider
these aspects in the investment decision process.
The evaluation looks at how companies approach
their social and environmental responsibilities.
Swap
A derivative in which two counterparties agree to
exchange one stream of cash flows against another
stream.
Syndicated loan
A loan that is provided by a group of lenders and is
structured, arranged and administered by one or
several commercial banks or investment banks,
known as arrangers.
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T
Top and bottom line
A company’s bottom line is its net income
attributable to shareholders. More specifically,
the bottom line is a company’s income after all
expenses have been deducted from revenues. The
top line refers to a company’s sales or revenues.
Top-down, bottom-up
A specific concept for information and knowledge
processing. In a first step, information and
empowerment of management decisions is
delegated from top to bottom. After going into more
detail on the bottom level, the final information and
decision are then transported back to the top.
Toxproof/TÜV Rheinland
A safety mark issued by TÜV Rheinland, especially
for testing the quantities of toxins in products.
Trend scouting
Identification and commercialisation of future
trends, particularly lifestyle trends.
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V
Vertical retailer
A retail company that (vertically) controls the entire
design, production and distribution processes of its
products.
Visual merchandising
Activity of promoting the sale of goods, especially
by their presentation at the point of sale. This
includes combining products, environments and
spaces into a stimulating and engaging display to
encourage the sale of a product or service.
Volatile Organic Compounds (VOCs)
Organic chemical compounds that can vaporise into
the air and may be harmful and cause breathing
and health problems. VOCs are by-products of the
shoe manufacturing process.
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W
Weighted average cost of capital
(WACC)
Calculation of the cost of capital according to the
debt/equity structure, utilising a weighted average
cost of capital (WACC) formula. The cost of equity is
typically computed utilising a risk-free rate, market
risk premium and a beta factor. The cost of debt is
calculated through the risk-free rate, credit spread
and average tax rate.
Working capital
A company’s short-term disposable capital used to
finance day-to-day operations.
Working capital = total current assets – total
current liabilities
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SEE ALSO OPERATING WORKING
CAPITAL.
World Business Council for
Sustainable Development (WBCSD)
A global association of around 200 international
companies dealing exclusively with business and
sustainable development : WWW.WBCSD.ORG.
World Federation of the Sporting
Goods Industry (WFSGI)
An independent non-profit organisation formed by
sporting goods brands, manufacturers, suppliers,
retailers and other sporting industry-related
businesses. It is the world authoritative body for the
sporting goods industry and is officially recognised
by the International Olympic Committee (IOC) as
the industry representative : WWW.WFSGI.ORG.