Adidas 1998 Annual Report Download - page 55

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Notes to Consolidated Financial Statements 53
The following is a summary of the consolidated statement of shareholders’ equity for the years ended December 31, 1998, 1997 and 1996:
Retained earnings
(including
foreign currency
Share Capital translation
(in DM 000) capital surplus adjustments)1) Total
Balance at January 1, 1996
226,746 14,781 335,059 576,586
Net effect on equity of changes in companies
included in consolidation – – 84 84
Net income – – 314,069 314,069
Dividend payment – – (11,338) (11,338)
Other – net, primarily translation adjustments – – 24,927 24,927
Cumulative equity adjustment due to the application of IAS 12
(revised 1996) – – 51,440 51,440
Balance at December 31, 1996
226,746 14,781 714,241 955,768
Net effect on equity of changes in companies
included in consolidation – – 42 42
Net income – – 463,014 463,014
Dividend payment – – (49,884) (49,884)
Other – net, primarily translation adjustments – – 32,461 32,461
Balance at December 31, 1997
226,746 14,781 1,159,874 1,401,401
Net effect on equity of changes in companies
included in consolidation – – (219) (219)
Net income – – (321,746) (321,746)
Dividend payment – – (74,826) (74,826)
Other – net, primarily translation adjustments – – (98,653) (98,653)
Balance at December 31, 1998
226,746 14,781 664,430 905,957
1) amounts related to foreign currency translation adjustments are included in retained earnings as it is not practicable to determine the
cumulative effects of these adjustments
At the annual general meeting of the Company held on May 7, 1998, the Company’s
shareholders approved the distribution of a dividend of DM 1.65 per share.
Earnings available for dividend distributions are determined by reference to the
retained earnings of adidas-Salomon AG calculated under German commercial law.
The Board of Directors will recommend to the annual general meeting that the
unappropriated earnings of adidas-Salomon AG at December 31, 1998 should be appro-
priated as follows:
(in DM 000)
Dividend of DM 1.65 per ordinary share 74,826
Allocation to revenue reserves 521,477
Unappropriated earnings of adidas-Salomon AG
as of December 31, 1998
596,303