30 Segmental information

The Group operates predominately in one industry segment – the design, wholesale and marketing of athletic and sports lifestyle products. The Group is currently managed by brands.

Certain Group functions are centralised and an allocation of these functions to specific segments is not considered to be meaningful. This includes functions such as central treasury, worldwide sourcing as well as other headquarters departments. Assets, liabilities, income and expenses relating to these corporate functions are presented in the HQ/Consolidation column together with other non-allocable items and intersegment eliminations.

The Reebok segment includes the brands Reebok, Reebok-CCM Hockey and Rockport.

The TaylorMade-adidas Golf segment includes the brands TaylorMade, adidas Golf and Ashworth.

Information about the Group’s segments in accordance with the management approach is presented on the following page.

There are no intersegment sales between the brands. Net sales to third parties are shown in the geographic market in which the revenues are realised. The global sourcing function is included in the HQ/Consolidation column. Transactions between the segments are based on the dealing-at-arm’s-length principle.

Segment assets include all operating assets and comprise mainly accounts receivable, inventory as well as property, plant and equipment and intangible assets. Segment liabilities comprise operating liabilities and consist principally of trade and other payables as well as accrued liabilities and provisions. Non-allocable items, including financial assets or assets and liabilities relating to income taxes and borrowings, are included in the HQ/Consolidation column.

Capital expenditure as well as amortisation and depreciation relate to segment assets.

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