Adidas 1999 Annual Report Download - page 66

Download and view the complete annual report

Please find page 66 of the 1999 Adidas annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 94

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94

62
Notes to Consolidated Financial Statements
The net carrying amount of these assets of DM 31 million and DM 35 million is
included in land and buildings as at December 31, 1999 and 1998, respectively. Inter-
est expense is DM 2 million and depreciation expense is DM 4 million for the year
ended December 31, 1999.
The minimum lease payments under these contracts over their remaining terms up to
2008 and their net present value are as follows:
December 31,
(in DM 0 00) 1999 1998
Lease payments falling due:
Within 1 year 4,400 4,717
Between 1 and 5 years 13,633 15,012
After 5 years 11,468 14,523
Total lease payments 29 ,5 0 1 34 ,2 5 2
Less: estimated amount representing interest 8,400 10,375
Obligation under finance leases 21,10 1 23 ,8 7 7
Thereof: current 2,680 2,748
non current 18,421 21,129
The non current portion of the obligation under finance leases includes amounts with
terms of more than 5 years of DM 10 million and DM 12 million as at December 31,
1999 and 1998, respectively.
Service arrangements:
The Company out-sourced certain logistic and information technology functions, for
which it has entered into long-term contracts. Financial commitments under these
contracts mature as follows:
December 31,
(in DM million) 19 99 19 98
Within 1 year 60 24
Between 1 and 5 years 172 68
After 5 years – –
232 92
19. Financial instruments The Company uses derivative financial instruments to reduce exposure to market risks
resulting from fluctuation in currency exchange and interest rates.
Management of foreign exchange risk:
Currency management policies of the Group are established by a Treasury Committee,
which is composed of members of the Company’s senior management. Currency risk is
generally managed from the Company’s headquarters at Herzogenaurach, Germany.