Adidas 2005 Annual Report Download - page 148

144 Financial Analysis
19 …
…
… Other Non-Current Liabilities
Other non-current liabilities consist mainly of obligations under fi nance leases of € 8 million
and € 13 million (see note 22) and negative fair values of long-term interest rate options of
€ 9 million and € 15 million as at December 31, 2005 and 2004, respectively.
Liabilities falling due after more than fi ve years totaled € 8 million and € 6 million as at De-
cember 31, 2005 and 2004, respectively.
20 …
…
… Minority Interests
Minority interests are attributable to four and fi ve subsidiaries as at December 31, 2005 and
2004 respectively (see Shareholdings/Attachment I to these notes).
These subsidiaries were mainly set up together with former independent distributors and li-
censees for the adidas brand.
In accordance with IAS 32, minority interests are no longer reported within the minority inter-
ests for GEV Grundstücksgesellschaft Herzogenaurach mbH & Co. KG (Germany) as the com-
pany is a limited partnership or for adidas Hellas A.E. (Greece) and adidas Suomi Oy (Finland)
as these minorities hold put options. The fair value of these minorities is shown within other
liabilities. The difference between the fair value and the minority interests has to be shown as
goodwill less accumulated amortization. The result for these minorities is now reported within
the fi nancial expenses. The prior year fi gures have been restated accordingly.
21 …
…
… Shareholders’ Equity
On December 31, 2004, the nominal capital of adidas-Salomon AG amounted to € 117,399,040
and was divided into 45,859,000 no-par-value bearer shares.
During 2005, the nominal capital was increased to a total of € 118,350,092.80, divided into
46,230,505 no-par-value bearer shares as a result of the exercise of a total of 371,505 stock op-
tions and the issuance of 371,505 no-par-value bearer shares associated with the various ex-
ercise periods of the Management Share Option Plan (MSOP). Capital reserves thus increased
by € 18,738,977.55 in 2005.
The details of the increase of the nominal capital are as follows:
On November 4, 2005, the Executive Board made use of its authorization under § 4 section 2 of
the Company’s Articles of Association to increase the nominal capital, subject to Supervisory
Board approval, by € 11,600,000 through the issuance of 4,531,250 no-par-value bearer shares
and to exclude shareholders’ subscription rights. On December 31, 2005, the nominal capital
of adidas-Salomon AG amounted to € 129,950,092.80 and was divided into 50,761,755 no-par-
value bearer shares. Capital reserves thus increased by € 636,368,750 in 2005. The transaction
costs accounted for as a deduction from capital reserves in 2005 amounted to € 9,071,562.50.
In January 2006, the nominal capital of adidas-Salomon AG was increased by a further € 141,568
as a result of the exercise of 55,300 stock options and the issuance of 55,300 no-par-value
bearer shares associated with the thirteenth exercise period of Tranche I (1999), the eleventh
exercise period of Tranche II (2000), the eighth exercise period of Tranche III (2001), the fi fth
exercise period of Tranche IV (2002) and the second exercise period of Tranche V (2003) of the
Management Share Option Plan. On February 17, 2006, the nominal capital of adidas-Salomon
AG therefore amounted to € 130,091,660.80 and is divided into 50,817,055 no-par-value bearer
shares. Capital reserves thus increased by € 2,830,920 in 2006.
Increase in Nominal Capital
Date of Total Amount of Exercised Stock Exercise Periods
Capital Increase Options and Issued Shares of MSOP Tranches
January 5, 2005 81,050 8th exercise period of Tranche II (2000)
5th exercise period of Tranche III (2001)
2nd exercise period of Tranche IV (2002)
June 30, 2005 83,605 9th exercise period of Tranche II (2000)
6th exercise period of Tranche III (2001)
3rd exercise period of Tranche IV (2002)
October 4, 2005 206,850 12th exercise period of Tranche I (1999)
10th exercise period of Tranche II (2000)
7th exercise period of Tranche III (2001)
4th exercise period of Tranche IV (2002)
1st exercise period of Tranche V (2003)