Adidas 1999 Annual Report Download - page 73

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69
Notes to Consolidated Financial Statements
24 . Earnings per share Basic earnings per share are computed as follows:
Year ended December 31,
1999 1998
Net income before special effect in DM 445,385,000 400,854,000
Net income/(loss) in DM 445,385,000 (321,746,000)
Weighted number of ordinary shares outstanding 45,349,200 45,349,200
Basic earnings per share before special effect 9.82 8.84
Basic earnings per share 9.82 (7.09)
Potential dilutive shares may arise under the stock option plan of adidas-Salomon AG,
which was implemented in 1999. The calculation of diluted earnings per share is not
applicable as at December 31, 1999 as none of the required performance criteria for
the exercise of the stock options is fulfilled at the balance sheet date (see note 29).
25 . Segmental information The Company operates predominately in one industry segment, the design, wholesale
and marketing of athletic and lifestyle products. The Company is currently managed by
brands and on the basis of a regional structure.
Certain functions of the Company are centralized and an allocation to specific
segments is not considered to be meaningful. Assets, liabilities, income and expenses
relating to these corporate functions are presented in the Headquarter/Consolidation
column together with non-allocable items and the inter-segment elimination.
Information about the Company’s segments in accordance with the management
approach is presented below.
Segmental information by brand
adidas SALOMON TAYLOR MADE
(in DM million) 1999 19 98 1999 1998 1999 1998
Net sales third parties 8,733 8,441 1,062 850 571 514
Gross margin 3,844 3,556 424 332 288 230
in % of net sales 44.0 42.1 39.6 39.0 50.1 44.7
Operating profit 839 806 61 10 68 39
Assets 3,919 3,383 996 1,117 275 193
Liabilities 1,582 1,228 311 272 88 53
Capital expenditure 206 198 29 35 19 31
Amortization and depreciation
excl. goodwill amortization 95 74 9 13 7 4