44 » Events after the Balance Sheet Date

In order to be able to successfully execute our new strategy ‘Own the Game’ for the period until 2025, adidas has changed its organizational structure. Since January 1, 2021, adidas manages Greater China as a separate market and integrated Russia/CIS and Emerging Markets into the European market. The markets North America and Latin America remain unchanged. Due to a change in the composition of the operating segments and associated cash-generating units respectively, adidas performed a reallocation of the carrying amounts of goodwill and an impairment test of the goodwill as of January 1, 2021. In this context, there was no need for impairment.

As part of the development of its new five-year strategy, adidas has concluded its assessment of strategic alternatives for Reebok. As a result of this review in February 2021, the company has decided to begin a process aimed at divesting Reebok. Accordingly, adidas is going to report the Reebok business as discontinued operations from the first quarter 2021 onward.

Immediately before the reclassification to discontinued operations, an impairment test according to IAS 36 was conducted and no impairment or write-up was required. On the initial classification as discontinued operations, the measurement at fair value also did not lead to an impairment.

The following table indicates the impact on the major line items in the consolidated income statement for the year 2020 under the assumption that the Reebok business activities had been represented as discontinued operations on January 1, 2020.

(XLSX:) Download

Impact on the major line items in the consolidated income statement € in millions
	adidas group	Reebok	adidas group excluding Reebok
Net Sales	19,844	1,409	18,435
EMEA	6,944	636	6,308
North America	4,916	397	4,519
China	4,428	86	4,342
Asia-Pacific	2,245	162	2,083
Latin America	1,160	125	1,035
Gross Margin	49.7%	44.8%	50.0%
Operating Margin	3.8%	0.4%	4.0%
Net income from continued operations	429	(32)	461

No further company-specific subsequent events are known which might have a material influence on the assets, liabilities, financial position, and profit or loss of the company.

Date of preparation

The Executive Board of adidas AG prepared and approved the consolidated financial statements for submission to the Supervisory Board on February 22, 2021. It is the Supervisory Board’s task to examine the consolidated financial statements and give their approval and authorization for issue.

Herzogenaurach, February 22, 2021