Adidas 1996 Annual Report Download - page 50

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8. Short-term borrowings Short-term borrowings consist of bank borrowings and discounted trade bills,
typically with maturities of less than 3 months.
As of December 31, 1996, principal borrowings were in DM (31.0%), GBP (18.3%)
and FRF (10.1%).
Month-end weighted average interest rates on borrowings ranged from 4.8% to
6.2% and from 6.5% to 7.3% for the years ended December 31, 1996 and 1995,
respectively.
The Company has cash credit lines of approximately DM 2.1 billion (of which, on
December 31, 1996, the Company had allocated DM 128 million to be available for
the issuance of letters of credit) and separate lines for the issuance of letters of
credit of approximately DM 730 million, which are used primarily to support the
Company’s sourcing activities in Asia. As of December 31, 1996, unused cash
credit lines amounted to approximately DM 1.5 billion.
DM 33 million is secured by cash deposits (DM 20 million) and mortgage (DM 13
million), respectively.
To protect its financial capabilities, the Company converted uncommitted short-term
borrowings in an amount of approximately DM 250 million into committed medium-
term credit lines in 1996. The facility, which carries a commitment fee of 0.09% p.a.
and provides for agreed maximum margins on drawings under the facility, if any,
initially runs till August 31, 2000, but contains a provision for an annual extension.
The Company can cancel the agreement once per year, for the first time on Sep-
tember 30, 1997.
9. Other current liabilities Other current liabilities consist of the following:
Dec. 31, Dec. 31,
(in DM 000) 1996 1995
Income taxes payable 90,790 32,560
Amounts due to unconsolidated affiliates 864 2,269
Other accrued liabilities:
Outstanding invoices 43,294 46,964
Payroll, commissions and employee benefits 72,597 63,121
Restructuring 16,297 19,145
Marketing 54,790*)41,023
Taxes, other than income taxes 30,735 26,037
Returns, allowances, warranty 30,238 21,417
Interest 382 5,455
Other 99,133 58,323
Total other accrued liabilities 347,466 281,485
443399,,112200316,314
*) Sales related returns and allowances were classified under returns, allowances, warranty;
previous year comparative figures have been reclassified accordingly
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