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adidas-Salomon ANNUAL REPORT 2000
71
Notes to Consolidated Financial Statements
See also note 1, chapter “New accounting standards” regarding
the treatment of derivative financial instruments under IAS 39,
beginning January 1, 2001.
Use of Estimates
The preparation of financial statements in conformity with IAS
requires Management to make assumptions and estimates that
affect reported amounts and related disclosures. Actual results
could differ from those estimates.
3. Acquisitions/Founding of Subsidiaries
adidas Japan K.K., Tokyo (Japan), a wholly owned subsidiary,
was founded on February 19, 1998. In the first quarter of 1999
this company took over the distribution of adidas branded
products from the former independent distributor and licensee.
adidas International Trading B.V., Amsterdam (Netherlands), a
wholly owned subsidiary, was founded on September 7, 1998.
This company became operative effective January 1, 1999 and
is in the process of assuming full responsibility for European
inventory management and global sourcing activities through its
subsidiary adidas-Salomon International Sourcing Ltd., Hong
Kong. In 1999 this company assumed responsibility for the
inventory of the adidas brand in the United Kingdom. During
2000 the legal ownership of the inventories of adidas Spain,
Portugal and Germany was transferred.
adidas Suomi OY, Helsinki (Finland), a joint venture with the
former distributor and licensee in Finland, was founded on
July 27, 1999. Beginning January 1, 2000, this joint venture
started its operations.
adidas Village Corporation, Portland (United States), a property
investment company, which owns the property of the new office
buildings – currently under construction – of adidas America in
Portland, was incorporated on September 23, 1999.
Effective March 9, 2000 adidas-Salomon assumed full owner-
ship of its former joint venture company adidas Portugal Lda.,
Lisbon (Portugal), by acquiring the remaining share of 49%.
4. Cash and Cash Equivalents
Cash and cash equivalents consist of the following:
(euros in thousands) Dec. 31 Dec. 31
2000 1999
Cash at banks and in hand 90,549 66,569
Marketable securities 14,157 2,539
Cash and cash equivalents 104,706 69,108
The majority of marketable securities relates to commercial
papers with a maximum maturity of 90 days.
In addition to short-term cash, adidas Korea has cash accounts
with maturities exceeding 12 months in the amount of c 1 million
(1999: c 1 million), which are included in other non current
assets
(see also note 11).