Adidas 2005 Annual Report Download - page 142

Download and view the complete annual report

Please find page 142 of the 2005 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 180

  • 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
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180

138 Financial Analysis
Notes to the Consolidated Balance Sheet
5 …
…
… Cash and Cash Equivalents
Cash and cash equivalents consist of cash at banks and on hand as well as short-term bank
deposits.
The increase in cash and cash equivalents is mainly attributable to increased short-term bank
deposits in the fourth quarter to fi nance the acquisition of Reebok International Ltd.
6 …
…
… Short-Term Financial Assets
Short-term fi nancial assets are classifi ed “at fair value through profi t or loss”. They comprise
investment funds as well as marketable equity securities.
Due to the acquisition of Reebok International Ltd. in 2006, the Company decided to dissolve its
assets in investment funds during the third and fourth quarter of 2005. This led to a decrease
in investments to € 61 million at the end of 2005 from € 259 million at the end of 2004. The
remaining investments, which are held in the categories total/absolute return funds and funds
of hedge funds, were disposed of gradually in early 2006.
The majority of marketable securities relates to commercial paper and certifi cates of deposit.
7 …
…
… Accounts Receivable
Accounts receivable are as follows:
8 …
…
… Inventories
Inventories by major classifi cation are as follows:
Goods in transit mainly relate to shipments from suppliers in the Far East to subsidiaries in
Europe, Asia and the Americas. The allowance for obsolescence mainly relates to inventories
on hand amounting to € 250 million and € 235 million as at December 31, 2005 and 2004, re-
spectively (see also note 2).
9 …
…
… Other Current Assets
Other current assets consist of the following:
Accounts Receivable € in thousands
Dec. 31 Dec. 31
2005 2004
Accounts receivable, gross 1,045,541 1,137,801
Less: allowance for doubtful accounts 80,727 91,479
Accounts receivable, net 964,814 1,046,322
Inventories € in thousands
Dec. 31 Dec. 31
2005 2004
Finished goods and merchandise on hand 870,430 838,794
Goods in transit and advance payments 365,210 304,038
Raw materials 34,176 61,842
Work in progress 11,211 7,983
Inventories, gross 1,281,027 1,212,657
Less: allowance for obsolescence 51,024 57,283
Inventories, net 1,230,003 1,155,374
Other Current Assets € in thousands
Dec. 31 Dec. 31
2005 2004
Prepaid expenses 177,704 129,093
Taxes receivable 110,783 127,008
Interest rate options 1,624 5,172
Currency options 68,641 7,264
Forward contracts 23,516 4,457
Security deposits 20,258 15,371
Receivables from non-consolidated affi liated companies – 349
Land held-for-sale 40,067 28,822
Sundry 145,450 66,050
Other current assets, gross 588,043 383,586
Less: allowance 2,106 5,283
Other current assets, net 585,937 378,303