35 Segmentberichterstattung

The effective tax rate of the Group differs from an assumed tax rate of
30% for the year ending December 31, 2011 as follows:
tax rate reconciliation
conSolidated Financial StatementS
04.8 Notes Notes to the Consolidated Income Statement Notes – Additional Information
Year ending Dec. 31, 2011 Year ending Dec. 31, 2010
€ in millions in % € in millions in %
Expected income tax
expenses 278 30.0 242 30.0
Tax rate differentials (81) (8.8) (89) (11.0)
Non-deductible expenses
Losses for which benefits
were not recognisable
and changes in valuation
5 0.6 43 5.3
allowances 1 0.1 8 1.0
Changes in tax rates (8) (0.9) (11) (1.4)
Other, net 1 0.1 1 0.1
196 21.1 194 24.0
Withholding tax expenses 61 6.6 44 5.5
Income tax expenses 257 27.7 238 29.5
For 2011 and 2010, the line “changes in tax rates” mainly reflects a UK
tax rate deduction effective in 2012 and 2011.
For 2011, the line “non-deductible expenses” includes tax benefits
of in total € 26 million (2010: € 14 million) related to the favourable
resolution of foreign tax disputes for prior years.
34 Earnings per share
Basic earnings per share are calculated by dividing the net income
attributable to shareholders by the weighted average number of
shares outstanding during the year.
For 2011 and 2010, no dilutive effects occurred.
Earnings per share
Year ending
Dec. 31, 2011
Year ending
Dec. 31, 2010
Net income attributable to shareholders
(€ in millions) 671 567
Weighted average number of shares 209,216,186 209,216,186
Basic earnings per share (in €) 3.20 2.71
adidas Group
2011 Annual Report
notes – Additional Information
35 Segmental information
The Group operates predominantly in one industry segment – the
design, distribution and marketing of athletic and sports lifestyle
products.
Following the Group’s internal management reporting and in
accordance with the definition of IFRS 8 “Operating Segments”,
six operating segments have been identified: Wholesale, Retail,
TaylorMade-adidas Golf, Rockport, Reebok-CCM Hockey and Other
Centrally Managed Brands. According to the criteria of IFRS 8 for
reportable segments, the business segments Wholesale and Retail
are reported separately, while the remaining are aggregated under
Other Businesses due to their only subordinate materiality.
The adidas and Reebok brands are reported under the segments
Wholesale, Retail and Other Centrally Managed Brands.
The operating segment TaylorMade-adidas Golf contains the
brands TaylorMade, adidas Golf and Ashworth.
Certain centralised Group functions do not meet the definition of
IFRS 8 for a reportable operating segment. This includes functions
such as central treasury, global sourcing as well as other headquarter
departments. Assets, liabilities, income and expenses relating to these
corporate functions are presented together with other non-allocable
items and intersegment eliminations in the reconciliations.
The chief operating decision maker for the adidas Group has been
defined as the joint Executive Board of adidas AG.
Information about the Group’s segments, in accordance with
Management’s internal reporting structure, is outlined below.
There are no intersegment sales between the reportable
segments. Accounting policies applied for reporting segmental information
are the same as those used for the adidas Group see note 02.
The results of the operating segments are reported in the line item
”Segmental operating profit”. This is defined as gross profit minus
costs directly attributable to the segment or the group of segments
(primarily sales and logistics costs) before marketing working budget
expenditures and operating overhead costs not directly attributable.
Segmental assets include accounts receivable and inventories.
Only these items are reported to the chief operating decision maker
on a regular basis. Depreciation, amortisation, impairment losses
and reversals of impairment losses as well as capital expenditures
for tangible and intangible assets are part of the segmental reporting,
even though segmental assets do not contain tangible and intangible
assets. Depreciation and amortisation as well as impairment
losses and reversals of impairment losses not directly attributable to
a segment or a group of segments are presented under HQ/Consolidation
in the reconciliations.
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2011 2011
04.8
Segmental liabilities contain accounts payable from operating
activities. No other liability items are reported regularly to the chief
operating decision maker.
Interest income and interest expenses as well as income taxes
are not allocated to the reportable segments and are not reported
separately to the Executive Board of adidas AG.
Segments (€ in millions)
conSolidated Financial StatementS
04.8 Notes Notes – Additional Information
Wholesale Retail Other Businesses Total
2011 2010 2011 2010 2011 2010 2011 2010
Net sales (non-Group) 8,971 8,181 2,793 2,389 1,580 1,420 13,344 11,990
Segmental operating profit 2,725 2,572 593 452 427 369 3,745 3,393
Segmental assets 2,859 2,690 703 541 639 514 4,201 3,745
Segmental liabilities 525 537 55 76 137 110 717 723
Capital expenditure 62 33 99 61 28 26 189 120
Depreciation and amortisation
Impairment losses, net of reversals of
25 22 85 88 9 8 119 118
impairment losses 0 (1) (1) 4 0 0 (1) 3
Reconciliations
The following tables include reconciliations of segmental information
to the aggregate numbers of the consolidated financial statements,
taking into account items which are not directly attributable to
a segment or a group of segments.
net sales (non-Group) (€ in millions)
Year ending
Dec. 31, 2011
Year ending
Dec. 31, 2010
Reportable segments 11,764 10,570
Other businesses 1,580 1,420
total 13,344 11,990
Operating profit (€ in millions)
Year ending
Dec. 31, 2011
Year ending
Dec. 31, 2010
Operating profit for reportable segments 3,318 3,024
Operating profit for other businesses 427 369
HQ/Consolidation 292 212
Marketing working budget (1,361) (1,288)
Other operating expenses (1,758) (1,523)
Royalty and commission income 93 100
Operating profit 1,011 894
Financial income 31 25
Financial expenses (115) (113)
Income before taxes 927 806
adidas Group
2011 Annual Report
Operating profit of centralised functions which do not represent a
segment, such as central treasury and global sourcing, is shown
under HQ/Consolidation.
Capital expenditure (€ in millions)
Year ending
Dec. 31, 2011
Year ending
Dec. 31, 2010
Reportable segments 161 94
Other businesses 28 26
HQ/Consolidation 187 149
total 376 269
depreciation and amortisation (€ in millions)
Year ending
Dec. 31, 2011
Year ending
Dec. 31, 2010
Reportable segments 110 110
Other businesses 9 8
HQ/Consolidation 130 128
total 249 246

Impairment losses, net of reversals of impairment losses
(€ in millions)
Year ending
Dec. 31, 2011
conSolidated Financial StatementS
04.8 Notes Notes – Additional Information
Year ending
Dec. 31, 2010
Reportable segments (1) 3
Other businesses 0 0
HQ/Consolidation 0 11
total (1) 14
total assets (€ in millions)
Dec. 31, 2011 Dec. 31, 2010
Accounts receivable and inventories of reportable
segments
Accounts receivable and inventories of other
3,562 3,231
businesses 639 514
Segmental assets
Non-segmental accounts receivable and
4,201 3,745
inventories (12) 41
Current financial assets 1,674 1,586
Other current assets 572 508
Non-current assets 4,945 4,738
total 11,380 10,618
total liabilities (€ in millions)
Dec. 31, 2011 Dec. 31, 2010
Accounts payable of reportable segments 579 613
Accounts payable of other businesses 138 110
Segmental liabilities 717 723
Non-segmental accounts payable 1,169 971
Current financial liabilities 345 396
Other current liabilities 2,050 1,818
Non-current liabilities 1,768 2,087
total 6,049 5,995
Product information
net sales (non-Group) (€ in millions)
Year ending
Dec. 31, 2011
Year ending
Dec. 31, 2010
Footwear 6,275 5,389
Apparel 5,734 5,380
Hardware 1,335 1,221
total 13,344 11,990
adidas Group
2011 Annual Report
Geographical information
Net sales (non-Group) are shown in the geographic market in which
the net sales are realised. Non-current assets are allocated to the
geographic market based on the domicile of the respective subsidiary
independent of the segmental structure and consist of tangible assets,
goodwill, trademarks, other intangible assets and other non-current
assets.
Geographical information (€ in millions)
Year ending
Dec. 31, 2011
Net sales
(non-Group)
Year ending
Dec. 31, 2010
Non-current assets
Dec. 31, 2011 Dec. 31, 2010
Western Europe
European Emerging
3,922 3,543 1,511 1,515
Markets 1,597 1,385 653 592
North America 3,102 2,805 877 683
Greater China 1,229 1,000 482 520
Other Asian Markets 2,125 1,972 581 557
Latin America 1,369 1,285 209 216
HQ/Consolidation 0 0 0 0
total 13,344 11,990 4,313 4,083
With regard to Germany, Western Europe contains net sales (non-
Group) amounting to € 722 million and € 655 million as well as noncurrent
assets amounting to € 393 million and € 363 million for the
years 2011 and 2010, respectively. With regard to the USA, North
America contains net sales (non-Group) amounting to € 2.688 billion
and € 2.427 billion as well as non-current assets amounting
to € 701 million and € 546 million for the years 2011 and 2010,
respectively.
36 Additional cash flow information
In 2011, the decrease in cash generated from operating activities
compared to the prior year was primarily due to increased income
taxes paid and higher operating working capital requirements.
Net cash outflow from investing activities in 2011 was mainly
related to spending for property, plant and equipment such as investments
in the furnishing and fitting of stores in the Retail segment, in
new office buildings and IT systems as well as the purchase of shortterm
financial assets.
Cash outflows from financing activities were mainly related to
repayment of short-term borrowings totalling € 273 million (2010:
€ 198 million) and dividends paid in an amount of € 167 million (2010:
€ 73 million).
Current revolving financial transactions are offset within financing
activities.
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