Adidas 1999 Annual Report Download - page 77

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73
Notes to Consolidated Financial Statements
27. Commitments Contingent liabilities:
and contingencies As at December 31, 1999 and 1998, respectively, the Company has bills discounted in
the amount of approximately DM 9 million and DM 10 million and is contingently liable
for guarantees of indebtedness for liabilities due to banks in the amount of approxi-
mately DM 2 million and DM 3 million.
Other financial commitments:
The Company has other financial commitments for promotion and advertising contracts,
which mature as follows:
December 31,
(in DM million) 19 99 19 98
Within 1 year 377 354
Between 1 and 5 years 976 966
After 5 years 201 225
1,554 1,545
Commitments in respect of advertising and promotion maturing after five years have
remaining terms of up to 10 years from December 31, 1999.
In addition purchase commitments for property and equipment are DM 2 million and
DM 25 million as at December 31, 1999 and 1998, respectively, which are maturing
within one year.
For commitments under lease and service contracts refer to note 18.
Litigation:
The Company is currently engaged in various lawsuits resulting from the normal course
of
business. The risks regarding these lawsuits were estimated and are included under
accrued liabilities and provisions (see note 12). Two of these lawsuits involve signifi-
cant amounts – in connection with the non-prolongation of a license and distribution
agreement in Japan and the claim of a Chinese dissident. In the opinion of manage-
ment, the ultimate liabilities resulting from such claims will not materially affect the
consolidated financial position of the Company.