Adidas 2005 Annual Report Download - page 175

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171
Synergies
Additional savings or revenue growth when one combined enterprise is created from two or
more separate parts.
Tax Rate
The effective tax rate is the amount of taxes actually paid as tax as a percentage of income
before taxes (IBT).
Working Capital
Working capital is a company’s short-term disposable capital used to fi nance the day-to-day
operations of providing sporting footwear, apparel and hardware to customers. It is calculated
as current assets minus current liabilities.
Working Capital Turnover
The working capital turnover ratio shows how often a working capital item was used in and
replaced by the generation of sales in the period under review. The ratio shows how long work-
ing capital is tied up and is an indicator of the volume of capital needed. The higher the ratio,
the more positive it is deemed to be. Working capital turnover = revenues/working capital.
Industry and General Glossary
Chassis
The chassis is the support element in footwear attached to the underside of the upper. A shoe’s
sole elements attached to the bottom of the chassis.
Clearance Sales
Clearance sales are all those sales made outside the course of normal business terms, aris-
ing from commercial decisions by management to clear excess stock usually through specifi c
channels and at a signifi cant discount.
Classics
Retro products that continue to be in demand because of their authentic unique heritage
style.
COR
‘Coeffi cient of restitution’. A measurement of the clubface’s ability to rebound the ball,
expressed as a percentage that is determined by a ball’s speed off the clubhead divided by the
speed at which it strikes the clubhead.
Directional Accounts
High-profi le boutiques and metropolitan accounts that target trendsetting sports lifestyle
consumers.
Emerging Markets
The term refers to economies that are currently small, but that have the potential for growth in
size and importance in coming years. The defi nition applies to countries in Asia, Latin America,
Eastern Europe and the Middle East, such as former CIS countries, Turkey, Bulgaria, Indone-
sia, Philippines, Mexico, Malaysia, Brazil, India and Thailand.
FIFA
World Football Federation (“Fédération Internationale de Football Association”)
Fundamental Research
Fundamental research is an activity designed to broaden scientifi c and technical knowledge
not directly linked to industrial or commercial objectives.
Hardware/Hard Goods
This category of sporting goods comprises all kinds of sports equipment that is used rather
than worn by the athlete, such as balls and golf clubs.
IAAF
International Association of Athletics Federation
IOC
International Olympic Committee
Key Accounts
Wholesaler’s or manufacturer’s primary customers that account for large percentages of
sales.
Make-To-Stock
The process of fi nishing goods on the basis of forecasts before an order is placed.
Metalwood
Golf clubs (drivers and fairway woods) which are constructed from steel and/or titanium alloys.
The name also pays homage to persimmon wood, which was originally used in the creation of
these products. This is the largest golf product category in terms of sales.
MLB
Major League Baseball
MLS
Major League Soccer (MLS) is the United States professional soccer league.
NBA
National Basketball Association
Supplementary Information Financial Glossary
Industry and General Glossary