Adidas 2000 Annual Report Download - page 88

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84
21. Operating Expenses
Operating expenses include expenses for sales, marketing and
research and development, as well as for logistics and central
finance and administration. In addition they include depreciation
on tangible and amortization on intangible assets, with the
exception of goodwill amortization.
A significant part of the operating expenses is comprised by
the Marketing Working Budget. The Marketing Working Budget
consists of promotion and communication spending such as
promotion contracts, advertising, retail support, events and
other communication activities, however it does not include
marketing overhead expenses. For the year 2000, Marketing
Working Budget accounted for approximately 38% (1999: 38%)
of the total operating expenses.
22. Cost by Nature
Expenses are presented by function in the income statement.
Supplementary information on the expenses by nature is detailed
below.
Cost of Materials
The total costs of materials are c 3,234 million and c 2,923 million
for the years ending December 31, 2000 and 1999, respectively.
Personnel Expenses
Personnel expenses are as follows:
(euros in millions) 2000 1999
Wages and salaries 533 481
Social security contributions 73 74
Pension expense 24 25
Personnel expenses 630 580
23. Financial Result
Financial result consists of the following:
(euros in thousands) 2000 1999
Interest income 12,612 7,284
Interest expense (108,517) (84,933)
Interest expense, net (95,905) (77,649)
Income from investments 474 441
Write-up of investments 3,126 –
Option premiums regarding
discontinued currency options 1 (2,096)
Other – net, primarily
net exchange losses (1,650) (4,567)
Financial result (93,954) (83,871)
Please refer also to note 20.