Reebok 2014 Annual Report Download - page 210

adidas Group
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2014 Annual Report
Consolidated Financial Statements
206
2014
Notes
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04.8
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Estimation uncertainties and judgements
The preparation of financial statements in conformity with IFRS requires the use of assumptions and estimates
that affect reported amounts and related disclosures. Although such estimates are based on Management’s best
knowledge of current events and actions, actual results may ultimately differ from these estimates.
The key assumptions concerning the future and other key sources of estimation uncertainty at the balance
sheet date which have a significant risk of causing a material adjustment to the carrying amounts of assets
and liabilities within the next financial year are outlined in the respective Notes, in particular goodwill
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SEE
NOTE 13, trademarks
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SEE NOTE 14, other provisions
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SEE NOTE 20, pensions
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SEE NOTE 24, derivatives
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SEE NOTE 29,
deferred taxes
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SEE NOTE 34 as well as litigation and other legal risks
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SEE NOTE 38.
Judgements have, for instance, been used in classifying leasing arrangements as well as in determining
valuation methods for intangible assets.
Plans to sell the Rockport operating segment became concrete towards the end of 2014 and a divestiture within
the next twelve months is considered as highly probable. For this reason, the Rockport operating segment is
reported as discontinued operations at December 31, 2014. The focus and the strategic direction of the Group’s
brand portfolio primarily lies in the field of sports with the result that the Rockport operating segment is no longer
regarded as significant in terms of the Group’s strategic direction.
The Rockport operating segment was neither classified as assets held for sale nor as discontinued operations
at December 31, 2013. The 2013 figures of the consolidated income statement and the consolidated statement of
cash flows have been restated to show the discontinued operations separately from continuing operations.
The results of the Rockport operating segment are shown as discontinued operations in the consolidated
income statement for all periods:
Discontinued operations
(€ in millions) Dec. 31, 2014 Dec. 31, 2013
Net sales 283 289
Expenses 264 268
Income from operating activities 19 21
Income taxes 5 4
Income from operating activities, net of tax 14 17
Loss recognised on the measurement to fair value less costs to sell (110) –
Income taxes 28 –
Loss recognised on the measurement to fair value less costs to sell, net of tax (82) –
Losses/gains from discontinued operations, net of tax (68) 17
Basic earnings per share from discontinued operations (€) (0.32) 0.08
Diluted earnings per share from discontinued operations (€) (0.32) 0.08
Losses from discontinued operations in an amount of € 68 million (2013: gains of € 17 million) are entirely
attributable to the shareholders of adidas AG.
03
Discontinued
operations