Reebok 2014 Annual Report Download - page 213

adidas Group
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2014 Annual Report
Consolidated Financial Statements
209
2014
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04.8
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Notes
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Notes to the Consolidated Statement of Financial Position
Inventories by major classification are as follows:
Inventories
(€ in millions) Dec. 31, 2014 Dec. 31, 2013
Gross value Allowance for
obsolescence
Net value Gross value Allowance for
obsolescence
Net value
Merchandise and finished goods
on hand 1,898 (92) 1,806 1,872 (69) 1,803
Goods in transit 688 – 688 800 – 800
Raw materials 34 (2) 32 31 (1) 30
Work in progress 1 – 1 1 – 1
Inventories 2,620 (94) 2,526 2,704 (70) 2,634
Goods in transit mainly relate to shipments of finished goods and merchandise from suppliers in Asia to
subsidiaries in Europe, Asia, North America and Latin America.
Due to concrete plans to sell the Rockport operating segment, assets amounting to € 88 million were
transferred from ‘Inventories‘ to ‘Assets classified as held for sale’ at year-end 2014
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SEE NOTE 11.
Other current assets consist of the following:
Other current assets
(€ in millions) Dec. 31, 2014 Dec. 31, 2013
Prepaid expenses 194 236
Tax receivables other than income taxes 129 133
Sundry 103 138
Other current assets, gross 426 507
Less: accumulated allowances 2 1
Other current assets, net 425 506
Prepaid expenses relate mainly to promotion and service contracts as well as rents.
At December 31, 2014, part of the assets of adidas AG, which mainly comprise land amounting to € 11 million
(2013: € 11 million), are still presented as held for sale following a signed contract of sale, which is still awaiting
certain conditions to be fulfilled that are not in the area of influence of the adidas Group. The automatic accretion
of the assets, formerly owned by GEV Grundstücksgesellschaft Herzogenaurach mbH & Co. KG, into adidas AG is
caused by the merger of the partner with limited liability GEV GmbH with adidas AG.
In addition, at December 31, 2014, all assets and liabilities of the Rockport operating segment are presented
as a disposal group held for sale due to the concrete plans to sell the operating segment. The Rockport operating
segment is part of Other Businesses.
Impairment losses of € 104 million (before transaction costs) for write-downs of the disposal group Rockport
to the lower of its carrying amount and its fair value less costs to sell have been included in ‘Losses/gains from
discontinued operations, net of tax’
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SEE NOTE 03. At December 31, 2014, the fair value less costs to sell amounts
to € 211 million. The impairment losses have been applied to reduce the carrying amount of goodwill, trademarks
and other intangible assets as well as property, plant and equipment.
09
Inventories
10
Other current assets
11
Assets/liabilities and
disposal groups classified
as held for sale