Adidas 1999 Annual Report Download - page 65

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61
Notes to Consolidated Financial Statements
Contingent capital:
Furthermore, by resolution of the Shareholders’ Meeting of May 20, 1999, the share-
holders approved the creation of contingent capital in the amount of EURO 3,500,000
(DM 6,845,405.00) for the issuance of up to 1,367,187 stock options to members of
the Executive Board, as well as to Managing Directors/Senior Vice Presidents of its
affiliated companies as well as to further senior executives and executives of adidas-
Salomon AG and of its affiliated companies (see note 29).
The corresponding change of the Articles of Association was entered into the Commer-
cial Register on August 27, 1999.
Distributable profits and dividends:
Distributable profits to shareholders are determined by reference to the retained
earnings of adidas-Salomon AG calculated under German Commercial Law.
The dividend for 1998 was DM 1.65 per share. The Executive Board of adidas-Salomon
AG recommends a dividend of DM 1.80 for 1999, subject to approval of shareholders.
The tax credit for domestic shareholders will be DM 0.77 per share for 1999, which
results in a gross dividend of DM 2.57 per share (see note 23).
It is proposed accordingly that retained earnings of adidas-Salomon AG as at December
31, 1999 be appropriated as follows:
(in DM 0 00) 1999
Retained earnings of adidas-Salomon AG as at December 31 82,250
Less: dividend of DM 1.80 per ordinary share 81,629
Retained earnings carried forward 621
18 . Leasing and Operating leases:
service arrangements The Company leases offices, warehouses and equipment under leases expiring between
one and eight years. Rent expenses aggregated DM 151 million and DM 125 million for
the years ended December 31, 1999 and 1998, respectively.
Future minimum lease payments under non-cancellable operating leases are as follows:
December 31,
(in DM million) 19 99 19 98
Within 1 year 114 82
Between 1 and 5 years 173 132
After 5 years 53 36
340 250
Finance leases:
Additionally, the Company leases several premises for administration, warehousing,
research and development as well as production, which are classified as finance leases.