Reebok 2015 Annual Report Download - page 204

CONSOLIDATED FINANCIAL STATEMENTS
Notes
200
4
At December 31, 2014, due to concrete plans to sell the Rockport operating segment, divestiture within the
next twelve months was considered as highly probable. As a consequence, the Rockport operating segment
was reported as discontinued operations for the first time in the 2014 consolidated financial statements.
On January 23, 2015, the adidas Group signed a definitive agreement to sell the Rockport operating
segment. The transaction was completed on July 31, 2015 for a preliminary cash consideration of
US $ 181 million plus fixed and contingent promissory notes.
The fair value of the contingent consideration was estimated by applying the discounted cash flow
method. As per December 31, 2015, the fair value increased by US $ 1 million since July 31, 2015.
The results of the Rockport operating segment are shown as discontinued operations in the consolidated
income statement:
DISCONTINUED OPERATIONS
€ in millions Year ending
Dec. 31, 2015
Year ending
Dec. 31, 2014
Net sales 159 283
Expenses (173) (264)
(Loss)/gain from operating activities (14) 19
Income taxes 0 (5)
(Loss)/gain from operating activities, net of tax (13) 14
Loss recognised on the measurement to fair value less costs to sell – (110)
Loss from the sale of discontinued operations (40) –
Income taxes 7 28
Loss recognised on the measurement to fair value less costs to sell, net of tax –(82)
Loss from the sale of discontinued operations, net of tax (32) –
Loss from discontinued operations, net of tax (46) (68)
Basic earnings per share from discontinued operations (€) (0.23) (0.32)
Diluted earnings per share from discontinued operations (€) (0.23) (0.32)
The loss from discontinued operations in an amount of € 46 million (2014: € 68 million) is entirely attributable
to the shareholders of adidas AG.
Effective August 5, 2015, adidas International B.V. completed the acquisition of runtastic GmbH (‘Runtastic’)
and consequently owns 100% of the voting rights. Founded in 2009 and headquartered in Pasching near
Linz/Austria, Runtastic is a health and fitness apps and related hardware company. With over 160 million
downloads and over 80 million registered users, Runtastic is a leader in the digital health and fitness
space. The company provides a comprehensive ecosystem for tracking and managing health and fitness
data. With this acquisition, the adidas Group intends to further expand its market position within the digital
health and fitness space. Runtastic was acquired for a purchase price of € 213 million in cash plus earn-out
components which are measured based on the discounted cash flow method. The earn-out components are
dependent on retention of the Runtastic management as well as on the achievement of certain performance
measures over the first three years after the acquisition. At the acquisition date, the amount recognised
as earn-out components was equivalent to the fair value.
03
DISCONTINUED
OPERATIONS
04
ACQUISITION OF
SUBSIDIARIESAS
WELL ASASSETS
AND LIABILITIES