Reebok 2014 Annual Report Download - page 217

adidas Group
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2014 Annual Report
Consolidated Financial Statements
213
2014
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04.8
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Notes
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Notes to the Consolidated Statement of Financial Position
Long-term financial assets
(€ in millions) Dec. 31, 2014 Dec. 31, 2013
Investment in FC Bayern München AG 80 80
Investments and other financial assets 49 40
Long-term financial assets 129 120
Other non-current financial assets consist of the following:
Other non-current financial assets
(€ in millions) Dec. 31, 2014 Dec. 31, 2013
Currency options 10 6
Forward exchange contracts 5 0
Security deposits 27 24
Sundry 0 –
Other non-current financial assets 42 30
For further information about currency options and forward exchange contracts
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SEE NOTE 29.
Other non-current assets consist of the following:
Other non-current assets
(€ in millions) Dec. 31, 2014 Dec. 31, 2013
Prepaid expenses 99 80
Sundry 6 1
Other non-current assets 105 81
Prepaid expenses mainly include prepayments for long-term promotion contracts and rents
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SEE NOTES 38 AND 28.
Borrowings are denominated in a variety of currencies in which the Group conducts its business. The largest
portions of effective gross borrowings (before liquidity swaps for cash management purposes) as at December 31,
2014 are denominated in euros (2014: 80%; 2013: 76%) and US dollars (2014: 12%; 2013: 14%).
The weighted average interest rate on the Group’s gross borrowings decreased to 3.1% in 2014 (2013: 3.8%).
As at December 31, 2014, the Group had cash credit lines and other long-term financing arrangements totalling
€ 3.7 billion (2013: € 3.4 billion); thereof unused credit lines accounted for € 1.8 billion (2013: € 2.0 billion). In
addition, at December 31, 2014, the Group had separate lines for the issuance of letters of credit and guarantees
in an amount of approximately € 0.2 billion (2013: € 0.2 billion).
The Group’s outstanding financings are unsecured and may include standard financial covenants, which are
reviewed on a quarterly basis. These covenants may include limits on the disposal of fixed assets, the maximum
amount of debt secured by liens, cross default provisions and change of control. In addition, certain financial
arrangements contain equity ratio covenants, minimum equity covenants as well as net loss covenants.
As at December 31, 2014, and December 31, 2013, shareholders’ equity was well above the amount of the
minimum equity covenant. Likewise, the relevant amount of net income clearly exceeded net loss covenants.
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Other non-current
financial assets
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Other non-current
assets
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Borrowings and
credit lines