Adidas 2001 Annual Report Download - page 112

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107
Glossary
Projected unit The accounting method (IAS 19) used to
credit method calculate provisions for pensions and similar
obligations. It takes into consideration not only
the pensions and vested interests accrued as at
cutoff date, but also anticipated increases in
salaries and pensions.
Return on An indicator of a company’s profitability
capital employed related to the total financing. It is calculated
by dividing income before taxes, minority
interests and the financial and extraordinary
results by capital employed (defined as the
average of shareholders’ equity plus minority
interests plus net total borrowings for the year).
Return on equity An indicator of company profitability related to
the shareholders’ financing. It is calculated by
dividing net income by shareholders’ equity.
Risk management The process of analyzing a company’s
exposure to risk and determining how to best
reduce, control and transfer it as appropriate.
Segmental reporting Information regarding the financial position,
results of operations in individual operating
areas and regions (segments). This gives an
indication of developments in the individual
segments and their contribution to a group’s
results.
Shareholder value Management concept that focuses strategic
and operational decision-making on steadily
increasing the company’s value for shareholders.
Soft goods At Salomon, this includes apparel (incl. socks
and gloves), footwear, accessories and bags.
At TaylorMade, it comprises bags, gloves,
towels, caps and umbrellas.
Stakeholders All parties that have a direct or indirect interest
in a company’s performance and results. This
includes consumers, retailers, distributors,
licensees, supply chain business partners,
shareholders, employees, international sports
bodies, non-governmental organizations,
the media, etc.
Standing Interpretations An accounting body which rules on contro-
Committee (SIC) versial accounting issues. Its interpretations
are approved by the International Accounting
Standards Board (IASB) and, once adopted,
are binding on all IAS users.
Supply chain The process of developing, producing and
management transporting products to customers.
Working capital Working capital is a company’s short-term
disposable capital used to finance the day-to-
day operations of providing sporting footwear,
apparel and hardware to customers. It is
calculated as current assets minus current
liabilities.
Working capital An indicator expressing how efficiently a
turnover company uses its working capital. Working
capital turnover is defined as net sales divided
by working capital.