Reebok 2014 Annual Report Download - page 263

adidas Group
/
2014 Annual Report
Additional Information
259
2014
Glossary
/
05.2
/
/
H
Hardware
A product category which comprises equipment
that is used rather than worn by the consumer,
such as bags, balls, fitness equipment, golf clubs
and hockey sticks.
/
L
LGBT
An acronym that stands for lesbian, gay, bisexual
and transgender.
Licensed apparel
Apparel products which are produced and
marketed under a licence agreement. The adidas
Group has licence agreements with several
associations (e.g. FIFA, UEFA), leagues (e.g. NBA,
NHL), teams (e.g. Real Madrid, AC Milan) and
universities (e.g. UCLA, Notre Dame).
Licensees
Companies that have the authorisation to use the
name of a brand or business for the production and
sale of products. For example, for adidas, licensed
products include cosmetics, watches and eyewear,
for Reebok, fitness equipment.
Liquidity I, II, III
The liquidity ratio indicates how quickly a company
can liquidate its assets to pay for current liabilities.
Liquidity I: [(Cash + short-term financial assets) /
current liabilities] × 100
Liquidity II: [(Cash + short-term financial assets +
accounts receivable) / current liabilities] × 100
Liquidity III: [(Cash + short-term financial assets +
accounts receivable + inventories) / current liabilities]
× 100
/
M
Marketing working budget (MWB)
Promotion and communication spending including
sponsorship contracts with teams and individual
athletes, as well as advertising, events and other
communication activities, but excluding marketing
overhead expenses. As marketing working budget
expenses are not distribution channel specific, they
are not allocated to the adidas Group’s operating
segments.
Mature markets
Developed countries which have highly
industrialised economies, high income levels and
in which most people have a high standard of living.
For the adidas Group, mature markets are the
high-income countries of Western Europe, North
America and Japan.
/
N
Net cash/Net borrowings
Net cash is when the sum of cash and short-term
financial assets exceeds gross borrowings. Net
borrowings is the portion of gross borrowings
not covered by the sum of cash and short-term
financial assets.
Net cash/Net borrowings = cash and cash equivalents
+ short-term financial assets – short-term
borrowings – long-term borrowings
Non-controlling interests
Part of net income or equity which is not
attributable to the shareholders of the reporting
company as it relates to outside ownership
interests in subsidiaries that are consolidated
with the parent company for financial reporting
purposes.
/
O
Omni-channel sales approach
Describes the ambition to achieve a globally
consistent product offer, brand communication,
availability and service across all sales channels
(Wholesale, Retail and eCommerce) and consumer
touch points.
Operating cash flow
Comprises operating profit, change in operating
working capital and net investments.
Operating cash flow = operating profit +/– change in
operating working capital +/– net investments (capital
expenditure less depreciation and amortisation)
Operating overheads
Expenses which are not directly attributable to
the products or services sold, such as costs for
distribution, marketing overhead costs, logistics,
research and development, as well as general and
administrative costs, but not including costs for
promotion, advertising and communication.
Operating working capital
A company’s short-term disposable capital which
is used to finance its day-to-day business. In
comparison to working capital, operating working
capital does not include non-operational items
such as financial assets and taxes.
Operating working capital = accounts receivable +
inventories – accounts payable
/
P
Performance business
In the sporting goods industry, performance
business relates to technical footwear and apparel
used primarily in doing sports.
Price points
Specific selling prices, normally using
‘psychological’ numbers, e.g. a product price of
US $ 99.99 instead of US $ 100.