Adidas 1998 Annual Report Download - page 51

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Notes to Consolidated Financial Statements 49
8. GOODWILL Goodwill primarily relates to the Company’s acquisitions of the Salomon group and
the subsidiaries in the United States, Australia/New Zealand and Netherlands/Belgium
(see also note 3).
Goodwill amortization expense is DM 78 million (adidas-Salomon group), DM 19
million (adidas comparable), and DM 17 million for the years ended December 31, 1998
and 1997, respectively.
9. OTHER INTANGIBLE ASSETS Other intangible assets consist of the following:
December 31,
1998 1998 1997
adidas- adidas adidas
(in DM 000) Salomon (comparable) (restated)
Software, patents, trademarks and
concessions, gross 156,451 65,993 39,137
Less: accumulated amortization 54,177 38,395 29,128
102,274 27,598 10,009
Advanced payments, net 4,481 4,481 875
Other intangible assets, net
106,755 32,079 10,884
Intangible asset amortization expense is DM 23 million (adidas-Salomon group),
DM 8 million (adidas comparable), and DM 4 million for the years ended December 31,
1998 and 1997, respectively.
10. OTHER NON-CURRENT Other non-current assets consist of the following:
ASSETS
December 31,
1998 1998 1997
adidas- adidas adidas
(in DM 000) Salomon (comparable) (restated)
Investments, net 5,541 934,284 943,819
Cash deposits 2,974 2,974 6,820
Prepaid expenses and
other non-current assets 108,763 108,763 6,847
Other non-current assets
117,278 1,046,021 957,486
Investments primarily relate to the shares in adidas Salomon France S.A. (see note 3).
These shares are accounted for at cost in the year 1997 and the comparable statement
for 1998.
Cash deposits with maturities exceeding 12 months refer to adidas Korea.
Prepaid expenses and other non-current assets mainly include prepayments for long-
term promotional contracts.