Reebok 2014 Annual Report Download - page 262

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adidas Group
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2014 Annual Report
Additional Information
258
2014
Glossary
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05.2
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Glossary
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B
Backlogs
Also called order backlogs. The value of orders
received for future delivery. Most retailers’ orders
are received six to nine months in advance.
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C
Capital expenditure
Total cash expenditure used for the purchase
of tangible and intangible assets, excluding
acquisitions and finance leases.
Cash pooling
A cash management technique for physical
concentration of cash. Cash pooling allows the
adidas Group to combine credit and debit positions
from various accounts and several subsidiaries into
one central account. This technique supports our
in-house bank concept where advantages are taken
of any surplus funds of subsidiaries to cover cash
requirements of other subsidiaries, thus reducing
external financing needs and optimising our net
interest expenses.
Comparable (comp) store sales
Sales generated in stores which have been open
for the entire prior financial year and are currently
operating. Remodelled stores are included if
the store format and store size have remained
unchanged. Comparable store sales therefore
show the organic growth of the Retail segment
and do not include sales generated from new store
openings.
Concession corners
Retail space that is fully operated by one brand of
the adidas Group and is part of a larger sales area
operated by a retail partner.
Controlled space
Includes own-retail business, mono-branded
franchise stores, shop-in-shops, joint ventures with
retail partners and co-branded stores. Controlled
space offers a high level of brand control and
ensures optimal product offering and presentation
according to brand requirements.
Conversion rate
A key ratio in retail business describing the number
of buying customers compared to those who
entered the store without buying something; i.e.
a 25% conversion rate means that 100 persons
entered a store with 25 of them buying something.
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D
DryDye
A fabric dyeing technology that uses pressurised
carbon dioxide to inject dye into fabric instead
of water, which is the traditional medium for
fabric dyeing. This process saves roughly 25
litres of water for a T-shirt and reduces energy
and chemical use by approximately 50%. The
technology was developed in cooperation between
adidas and the Thailand-based Yeh Group.
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E
Emerging markets
Developing countries showing potential for growth
in both economic strength and private wealth in the
future. For the adidas Group, emerging markets are
the developing countries of Asia, Eastern Europe,
Latin America and Africa.
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F
Financial leverage
Ratio reflecting the role of borrowings within the
financing structure of a company.
Financial leverage = (net borrowings / shareholders’
equity) × 100
Free cash flow
Cash that is generated by a company’s operating
activities after the deduction of net investments
and other cash expenses such as taxes and interest
from the operating profit.
Free cash flow = operating profit +/– change in
operating working capital +/– net investments (capital
expenditure less depreciation and amortisation) +/–
financial result and income taxes
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G
German Co-Determination Act
(Mitbestimmungsgesetz – MitbestG)
An act that governs the form of co-determination
of employees in corporations employing more than
2,000 employees. It stipulates, among other things,
that such a corporation’s Supervisory Board must
be composed of an equal number of employee and
shareholder representatives.
Goodwill
Intangible asset that quantifies the price that a
buyer of a company has paid for the reputation,
know-how and market position of the acquired
company. Goodwill is the excess of the amount paid
over the fair value of the net assets acquired at the
purchase date. It is stated at cost and tested for
impairment annually or on such other occasions
that events or changes in circumstances indicate
that it might be impaired.
Green grass retailers
Golf distribution channel. Small golf specialty
shops typically located at a golf course.