Reebok 2014 Annual Report Download - page 247

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adidas Group
/
2014 Annual Report
Consolidated Financial Statements
243
2014
/
04.8
/
Notes
/
Notes – Additional Information
In 2014, the increase in cash generated from operating activities compared to the prior year was primarily due to
lower working capital requirements.
Net cash outflow from investing activities in 2014 was mainly related to spending for property, plant and
equipment such as investments in the furnishing and fitting of stores in the Retail segment, in new office buildings,
warehouses and IT systems.
Cash outflows from financing activities were mainly related to the dividend paid to shareholders of adidas AG
and to the repurchase of treasury shares.
Net cash generated from discontinued operations
(€ in millions) Dec. 31, 2014 Dec. 31, 2013
Net cash generated from operating activities 19 23
Net cash used in investing activities (7) (6)
Net cash used in/generated from financing activities – –
Total 12 17
Other financial commitments
The Group has other financial commitments for promotion and advertising contracts, which mature as follows:
Financial commitments for promotion and advertising
(€ in millions) Dec. 31, 2014 Dec. 31, 2013
Within 1 year 836 724
Between 1 and 5 years 2,590 2,054
After 5 years 1,766 1,013
Total 5,193 3,791
Commitments with respect to promotion and advertising contracts maturing after five years have remaining
terms of up to 16 years from December 31, 2014.
Commitments for promotion and advertising contracts increased by € 1.4 billion compared to December 31,
2013 due to the conclusion of new contracts and the prolongation of existing partnerships. The increase mainly
resulted from the long-term promotion contract concluded with Manchester United F.C.
Information regarding commitments under lease and service contracts is also included in these Notes
/
SEE
NOTE 28.
Litigation and other legal risks
The Group is currently engaged in various lawsuits resulting from the normal course of business, mainly in
connection with distribution agreements as well as intellectual property rights. The risks regarding these lawsuits
are covered by provisions when a reliable estimate of the amount of the obligation can be made
/
SEE NOTE 20. In
the opinion of Management, the ultimate liabilities resulting from such claims will not materially affect the assets,
liabilities, financial position and profit or loss of the Group.
In connection with the financial irregularities at Reebok India Company in 2012, various legal uncertainties
were identified. The risks cannot be assessed conclusively. However, based on legal opinions and internal
assessments, Management assumes that the effects will not have any material influence on the assets, liabilities,
financial position and profit or loss of the Group.
37
Additional cash flow
information
38
Commitments and
contingencies