Annual Report 1997 (1.5 MB PDF) - adidas Group

Credit lines:
Prior to the announcement of the acquisition of the Salomon group, the Company had cash
credit lines of approximately DM 2.4 billion and separate lines for the issuance of letters of credit,
which are used primarily to support the Company’s sourcing activities in Asia, in an amount of
approximately DM 1.3 billion.
In connection with the acquisition of the Salomon group, the Company arranged additional credit
lines in a total amount of DM 3.35 billion.
Out of the total cash credit lines of DM 5.75 billion, lines in a total amount of approximately
DM 1.5 billion are documented as committed medium-term lines, which carry a facility fee of
0.09% p.a. and provide for agreed maximum margins on drawings. These committed mediumterm
lines initially run till November 30, 2001, but contain a provision for an annual extension.
The Company can cancel these committed medium-term lines annually, for the first time on
November 30, 1998.
As of December 31, 1997, unused cash credit lines amounted to approximately DM 4.2 billion,
of which DM 1.5 billion were expected to be needed for the purchase of the remaining shares of
Salomon S.A.
As to the protection against interest rate risks, refer to note 14 below.
10. Other current liabilities Other current liabilities consist of the following:
(in DM 000) Dec. 31, 1997 Dec. 31, 1996
Income taxes payable 133,336 90,790
Amounts due to unconsolidated affiliates 923 864
Other accrued liabilities:
adidas-Salomon AG and Subsidiaries
Notes to Consolidated Financial Statements
Outstanding invoices 57,719 43,294
Payroll, commissions and employee benefits 109,878 72,597
Restructuring 21,038 16,297
Marketing 80,640 54,790
Taxes, other than income taxes 43,521 30,735
Returns, allowances, warranty 43,016 30,238
Interest 2,220 382
Other 104,004 99,133
Total other accrued liabilities 462,036 347,466
596,295 439,120
Other current liabilities mainly consist of credit balances in accounts receivable, customs duties,
provisions for anticipated losses from pending purchase and other transactions, obligations under
capital lease as well as provisions for risks from pending law suits.
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