Promotion Partnerships
Partnerships with events, associations, leagues, clubs and individual athletes. In exchange for the services of promoting the adidas Group, the party is provided with cash and/or promotional material.
Promotional Expenditure
Expenses related to promotion partnerships.
Purchase Price Allocation (PPA)
Stipulated by IFRS regulations. Allocation of the purchase price paid for an acquisition according to the fair values assigned to acquired assets and liabilities.
Record Date
Date by which a shareholder must own a company’s shares in order to be able to register for participation in the Annual General Meeting of such company. According to German law, the record date is twenty-one days before the Annual General Meeting.
Retail Investor
An individual who purchases securities for him-/herself, as opposed to an institutional investor.
Return on Capital Employed (ROCE)
A measure of the returns that a company is realizing from its capital.
ROCE = (income before taxes + financial result + extraordinary income) / (average of shareholders’ equity + minority interests + total net borrowings).
Return on Equity (ROE)
An indicator of company profitability related to the shareholders’ financing.
ROE = net income / shareholders’ equity.
Risk-Free Rate
The rate of return to be expected on a risk-less investment, e.g. federal bonds.
Second Tier Supplier
Also tier 2 suppliers. Suppliers who provide the adidas Group with materials and components to be used in the production of finished products, but do not manufacture products.
Segment
Also Business Segment. Units within a company that have profit & loss responsibility. The adidas Group is currently divided into four major business segments: adidas, Reebok, TaylorMade-adidas Golf and HQ/Consolidation.
Segmental Reporting
Information regarding the financial position and results of operations in individual brands (segments) and regions. This gives an indication of developments in the individual segments and their contribution to the Group’s results.
