Adidas 2003 Annual Report Download - page 163

PRIVATE PLACEMENT /// Placement of securities directly to institutional investors, such as
banks, mutual funds, insurance companies, pension funds, and foun-
dations.
PRODUCT LICENSEES /// Companies that are authorized to use the name of the adidas-Salomon
Group’s brands to manufacture and distribute products such as sports
watches, sports eyewear, toiletries and perfume.
PROJECTED UNIT CREDIT The accounting method (IAS 19) used to calculate provisions for pen-
METHOD /// sions and similar obligations. It includes not only the pensions and
vested interests accrued as at cut-off date, but also anticipated in-
creases in salaries and pensions.
PROMOTIONAL Costs related to sponsorship of individual athletes, teams, federations
EXPENSES /// and sporting events for the promotion of a company’s brand(s).
RETURN ON CAPITAL An indicator of a company’s profitability related to the total financing.
EMPLOYED /// 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.
SEGMENTAL Information regarding the financial position, results of operations in
REPORTING /// individual operating areas and regions (segments). This gives an indi-
cation of developments in the individual segments and their contribu-
tion to a group’s results.
SELL-THROUGH /// The time in which products are sold to the consumer through retailers.
SG&A (SELLING, GENERAL Expenses for sales, marketing and research and development, as well
AND ADMINISTRATIVE) as for logistics and central finance and administration.
EXPENSES ///
SHAREHOLDER VALUE ///
A management concept that focuses strategic and operational decision
-
making on steadily increasing a company’s value for shareholders.
SOFT GOODS /// This category of sporting goods comprises apparel and footwear
products.
SOURCING /// The process of managing external suppliers in order to commercialize,
produce and deliver final products to our customers.
SPEED-TO-MARKET /// Length of time it takes to get a product from idea to marketplace.
STAKEHOLDERS /// All parties that have a direct or indirect interest in a company’s per-
formance and results. For adidas-Salomon, this includes consumers,
retailers, distributors, licensees, supply chain business partners,
shareholders, employees, international sports bodies, non-govern-
mental organizations, the media, etc.
SUPPLY CHAIN The process of developing, producing and transporting products to
MANAGEMENT /// customers.
WTA /// Women’s Tennis Association
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. See also operating working capital.
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