Adidas 2001 Annual Report Download - page 90

Download and view the complete annual report

Please find page 90 of the 2001 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 117

  • 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
  • 115
  • 116
  • 117

85
Consolidated Accounts
As at December 31, 2001, the remaining life of these interest rate hedges
is up to 6.0 years (2000: 6.0 years), with a weighted average of 3.1 years
(2000: 3.6 years). The interest rate hedges expire as detailed below:
The fair value of the above instruments is €1 million and €5 million
as at December 31, 2001 and 2000, respectively. All fair value changes
are recorded directly in the income statement.
Credit Risk
The Company arranges currency and interest rate hedges, and invests
cash, with major banks of a high credit standing throughout the world,
and in high-quality money-market instruments.
21. Operating Expenses
Operating expenses include expenses for sales, marketing and research
and development, as well as for logistics and central finance and admini-
stration. In addition they include depreciation on tangible and amortiza-
tion on intangible assets, with the exception of goodwill amortization
and other depreciation and amortization which is included in cost of sales.
A significant part of the operating expenses is comprised by the market-
ing 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 2001,
marketing working budget accounted for approximately 35% (2000:
38% ) of the total operating expenses.
Total depreciation and amortization expense for tangible and intangible
assets (except for goodwill) is €108 million and €96 million for
the years ending December 31, 2001 and 2000 respectively. Thereof
€18 million and €17 million are recorded within the cost of sales as
they are directly attributable to the production costs of goods sold.
Dec. 31 Dec. 31
(euros in millions) 2001 2000
Within 1 year 230 281
Between 1 and 3 years 459 476
Between 3 and 5 years 756 435
After 5 years 50 597
Total 1,495 1,789