Glossary

 

American Depositary Receipt (ADR)
US-traded negotiable certificate of a foreign-based company held by a US bank that entitles the holder to all dividends and rights of the underlying stock. ADRs provide a way for Americans to invest in foreign-based companies by buying their shares in the USA instead of through an overseas exchange.

Asset-Backed Securities (ABS)
Securities (bonds or notes) backed by loan receivables, accounts receivable or other quantifiable assets.

Asset Coverage I & II
The extent to which a company’s non-current assets cover its debt obligations. They are expressed as a percentage and calculated as follows:
Asset coverage I (%) = (equity + non-current liabilities) / non-current assets.
Asset coverage II (%) = (equity + non-current liabilities) / (non-current assets + inventories).

Athletic Specialty
A largely mall-based retail distribution concept in North America that focuses primarily on selling sports and sports lifestyle products to consumers. 

Backlogs
Also called order backlogs. The value of orders received for future delivery. At adidas and Reebok, most orders are received six to nine months in advance, depending on the season. This information is used as an indicator of future sales performance.

Basic Earnings Per Share (Basic EPS)
Performance indicator used to gauge a company’s earnings per share, based on the number of shares outstanding (excluding stock options, as well as options and conversion rights related to a convertible bond).
Basic EPS = net income / weighted average number of shares outstanding during the year.
 see also Diluted Earnings Per Share

Beta Factor
Indicates a stock’s relative risk. A beta coefficient of more than one indicates that the stock has a higher risk than the overall market. Conversely, a beta coefficient of less than one indicates a lower risk.

Body Maping
Aligning Clima fabric and construction technologies with an athlete’s physiological zones of heat and sweat production, to optimize dryness and thermal comfort during sport.

BOUNCE™
Three-dimensional energy management system, consisting of several pieces that can be placed under the forefoot and / or heel. The pieces are tuned to a particular need such as cushion and guidance for optimal performance.

Branded Apparel
Apparel products which visibly display specific symbols, trademarks or other references to the supplier of the product.

Capital Expenditure
Total cash expenditure (excluding acquisitions and finance leases), net of any recoverable taxes (e.g. Value Added Tax – VAT) for the purchase, lease or construction of assets.

Classics
Products designed in an authentic heritage style, targeting sports lifestyle consumers who seek trendsetting streetwear with authentic origins.

Clearance Sales
Revenues generated outside the course of normal business terms, arising from commercial decisions by management to clear excess stock usually through specific channels and at a significant discount.

Clima
adidas apparel system encompassing the ClimaCool®, ClimaLite®, ClimaWarm® and ClimaProof® technologies. ClimaCool® is an integrated system of technologies that work together to regulate the athlete’s body temperature. ClimaCool® is also utilized as a cooling system in footwear. ClimaLite® fabric pulls sweat away from the skin to the outer fabric face for quick evaporation, enhancing the body’s natural temperature regulation. ClimaWarm® is lightweight, breathable insulation that keeps the athlete dry and comfortable in cold weather conditions. ClimaProof® is breathable weather protection that keeps wind, rain and snow out while allowing heat and sweat to escape through evaporation.

Co-Branded Stores
adidas or Reebok stores that are co-branded together with a partner, for example a sports league such as the NHL or NBA (e.g. NBA Concept Shop in Istanbul, Turkey).

Commercial Paper
Tradeable unsecured promissory notes issued for the purpose of short-term financing. A commercial paper is issued on an ongoing, revolving basis with maturities typically between seven days and 12 months or more.

Concession Corners
Retail space that is fully operated by one brand within the adidas Group. This distribution channel mainly exists in Asian markets, where no other established channels of distribution exist.

Convertible Bond
Corporate bond that can be exchanged for a specific number of shares of a company’s common stock. Convertible bonds tend to have lower interest rates than non-convertibles because they also accrue value as the price of the underlying stock rises. In this way, convertible bonds reflect a combination of the benefits of stocks and those of bonds.

Corporate Governance
Distribution of rights and responsibilities among the primary stakeholders in a company, in particular shareholders, the Executive Board and the Supervisory Board.

Cost of Sales
Costs of sourcing and manufacturing products. This figure includes costs for raw materials plus costs of production, freight, customs and delivery to the adidas Group’s sales organizations.

Credit Spread
Risk premium which represents the yield difference between risk-free government bonds and corporate bonds with the same duration. A potential investor demands an additional yield (risk premium = credit spread) for the higher risk of default with corporate bonds versus government bonds.