Adidas 2002 Annual Report Download - page 122

adidas-Salomon AG, a listed German stock corporation, and its subsidiaries design, develop,
produce and market a broad range of athletic and sports lifestyle products. The Group has divided
its operating activities by major brands into three segments: adidas, Salomon and TaylorMade-
adidas Golf.
adidas branded products include footwear, apparel and hardware, such as bags and balls. The
products are designed and developed by adidas and are almost exclusively manufactured by sub-
contractors on behalf of adidas. erima products include teamsport apparel.
Salomon branded products include ski and snowboard equipment (skis, snowboards, boots and
bindings), technical outdoor apparel as well as hiking boots and inline skates which are designed
and manufactured mainly in France, Italy and Romania. Mavic products include rims and wheels
for mountain bikes and road racing as well as gears. The Bonfire brand offers snowboard apparel
and streetwear. Cliché is the brand for skateboard equipment, footwear and apparel. Arc’Teryx is
specialized in technical outerwear, performance backpacks and climbing equipment.
TaylorMade develops and assembles or manufactures high-quality golf clubs and golf acces-
sories. adidas Golf branded products include footwear and apparel. Maxfli is specialized in golf
balls.
The Group’s headquarters are located in Herzogenaurach, Germany.
1 /// GENERAL
The accompanying consolidated financial statements of adidas-Salomon AG (in the following also
the “Company”) and its subsidiaries (collectively the “adidas-Salomon Group”, “adidas-Salomon” or
the “Group”) are prepared in accordance with accounting principles adopted by the International
Accounting Standards Board (International Financial Reporting Standards – “IFRS” – formerly IAS).
The Group applied all International Financial Reporting Standards and Interpretations of the Inter-
national Financial Reporting Interpretations Committee (“SIC”) effective as at December 31, 2002
and 2001, respectively.
The Group adopted IAS 39 (revised 2000) “Financial Instruments: Recognition and Measure-
ment” in 2001. The financial effects of adopting this standard were reported in the 2001 consoli-
dated financial statements. All other new or revised standards which were adopted effective
January 1, 2001 had no material impact on the Group’s financial position, results of operations
or cash flows and its reporting thereon. In 2002, no new or revised standards were adopted.
German Statutory Reporting
The Company does not prepare consolidated financial statements under accounting principles
generally accepted in Germany (German GAAP) pursuant to the exemption in § 292a of the German
Commercial Code (HGB).
2 /// SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The consolidated financial statements are prepared in accordance with the consolidation, account-
ing and valuation principles described below.
Principles of Consolidation
The consolidated financial statements include the accounts of adidas-Salomon AG and its signifi-
cant direct and indirect subsidiaries, which are prepared under uniform accounting principles.
A company is a subsidiary if adidas-Salomon AG controls directly or indirectly the financial and
operating policies of the respective enterprise.
The number of consolidated companies evolved as follows for the years ending December 31,
2002 and 2001 respectively:
Eight subsidiaries have not been included in the consolidated financial statements in 2002
(2001: nine subsidiaries), since they have no or little active business and are insignificant to the
financial position, results of operations and cash flows. The shares in these companies are
accounted at cost.
A schedule of the shareholdings of adidas-Salomon AG is shown in Attachment I to these
notes. A collective listing of these shareholdings in accordance with § 285 No.11 and § 313 section
2 and 3 of the German Commercial Code will be filed with the Commercial Register at the Local
Court in Fürth (Bavaria).
Consolidation of equity is made in compliance with the book value method by offsetting the
initial investments in subsidiaries against the relevant equity portion at fair value held by the parent
company as at acquisition date.
All significant intercompany transactions and balances, and any unrealized gains and losses
arising from intercompany transactions are eliminated in preparing the consolidated financial
statements.
Notes
120 FINANCIAL ANALYSIS CONSOLIDATED FINANCIAL STATEMENTS (IFRS)
NUMBER OF CONSOLIDATED COMPANIES
2002 2001
January 1 100 95
Newly founded/consolidated companies 43
Purchased companies 22
December 31 106 100