Adidas 2000 Annual Report Download - page 94

Download and view the complete annual report

Please find page 94 of the 2000 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 114

  • 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
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114

90
Compared to the prior year, the composition of the segments of
adidas-Salomon has changed, reflecting the further integration
and reorganization of certain central functions. In addition,
the management responsibility for adidas Golf products was
transferred to TaylorMade. Comparative information has been
restated in order to improve comparability.
Net sales to third parties are shown in the geographic market in
which the revenues are realized. Inter-segment sales represent
sales to operational units not belonging to the same region;
the global sourcing function is shown in the Headquarter/Con-
solidation column.
Transactions between the segments, as well as between legal
entities, are based on the dealing-at-arms’-length principle. How-
ever, certain charges between legal entities are not reflected
in the above reporting format.
Segment assets include all operating assets and comprise
mainly accounts receivable, inventory, property, plant and
equipment as well as intangible assets. Segment liabilities
comprise operating liabilities and consist principally of trade
and other payables and accrued liabilities and provisions.
Non-allocable items include goodwill, financial assets, assets
and liabilities relating to income taxes and borrowings, which
are included in the Headquarter/Consolidation column.
Capital expenditure, amortization and depreciation relate to
segment assets; the acquisition of goodwill and the inception
of finance leases do not affect capital expenditure.
27. Commitments and Contingencies
Contingent Liabilities
As at December 31, 2000 and 1999, respectively, the Com-
pany had bills discounted in the amount of approximately
c 9 million and c 5 million. In addition, the Company was con-
tingently liable for guarantees of indebtedness for liabilities
due to banks in the amount of approximately c 1 million as at
December 31, 1999.
Other Financial Commitments
The Company has other financial commitments for promotion
and advertising contracts, which mature as follows:
(euros in millions) Dec. 31 Dec. 31
2000 1999
Within 1 year 202 193
Between 1 and 5 years 472 499
After 5 years 103 103
Total 777 795
Commitments in respect of advertising and promotion maturing
after five years have remaining terms of up to eight years from
December 31, 2000.
In addition, purchase commitments for property, plant and
equipment are c 7 million and c 1 million as at December 31,
2000 and 1999, respectively, which are maturing within one
year.
For commitments under lease and service contracts refer to
note 19.