Reebok 2014 Annual Report Download - page 231

adidas Group
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2014 Annual Report
Consolidated Financial Statements
227
2014
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04.8
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Notes
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Notes to the Consolidated Statement of Financial Position
Finance leases
The Group also leases various premises for administration and warehousing which are classified as finance
leases.
The net carrying amount of these assets of € 10 million and € 13 million was included in property, plant and
equipment as at December 31, 2014 and 2013, respectively. For the year ending December 31, 2014, interest
expenses (continuing operations) were € 0 million (2013: € 0 million) and depreciation expenses (continuing
operations) were € 4 million (2013: € 5 million).
Minimum lease payments for finance leases in 2014 include land leases with a remaining lease term of
98 years. The minimum lease payments under these contracts amount to € 11 million. The estimated amount
representing interest is € 9 million and the present value amounts to € 2 million.
The net present values and the minimum lease payments under these contracts over their remaining terms
up to 2017 and the land leases with a remaining lease term of 98 years are as follows:
Minimum lease payments for finance leases
(€ in millions) Dec. 31, 2014 Dec. 31, 2013
Lease payments falling due:
Within 1 year 3 4
Between 1 and 5 years 5 7
After 5 years 11 12
Total minimum lease payments 19 23
Less: estimated amount representing interest 9 10
Present value of minimum lease payments 10 13
Thereof falling due:
Within 1 year 3 4
Between 1 and 5 years 4 7
After 5 years 3 2
Service arrangements
The Group has outsourced certain logistics and information technology functions, for which it has entered into
long-term contracts. Financial commitments under these contracts mature as follows:
Financial commitments for service arrangements
(€ in millions) Dec. 31, 2014 Dec. 31, 2013
Within 1 year 75 89
Between 1 and 5 years 101 99
After 5 years 18 28
Total 193 216