11 » Property, Plant and Equipment

The following table presents a reconciliation of the carrying amount of property, plant, and equipment:

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Property, plant and equipment € in millions

 

 

Land and buildings

 

Technical equipment and machinery

 

Other equipment, furniture and fixtures

 

Construction
in progress

 

Property, plant, and equipment

 

 

 

 

 

 

 

 

 

 

 

Acquisition cost

 

 

 

 

 

 

 

 

 

 

January 1, 2019

 

1,324

 

357

 

1,808

 

480

 

3,969

Additions

 

144

 

31

 

303

 

121

 

599

Disposals

 

(42)

 

(9)

 

(219)

 

(3)

 

(272)

Transfers

 

347

 

43

 

(15)

 

(380)

 

(6)

Increase in companies consolidated

 

40

 

1

 

0

 

–

 

41

Decrease in companies consolidated

 

–

 

–

 

(2)

 

–

 

(2)

Currency translation differences

 

28

 

9

 

35

 

4

 

76

December 31, 2019/January 1, 2020

 

1,842

 

432

 

1,910

 

221

 

4,405

Additions

 

73

 

13

 

165

 

128

 

378

Disposals

 

(32)

 

(7)

 

(162)

 

(4)

 

(205)

Transfers

 

51

 

6

 

17

 

(75)

 

(1)

Currency translation differences

 

(82)

 

(28)

 

(129)

 

(13)

 

(251)

Net change due to lease modification/
remeasurement

 

0

 

–

 

–

 

–

 

0

December 31, 2020

 

1,852

 

416

 

1,800

 

258

 

4,326

 

 

 

 

 

 

 

 

 

 

 

Accumulated depreciation and impairment

 

 

 

 

 

 

 

 

 

 

January 1, 2019

 

412

 

180

 

1,221

 

–

 

1,814

Depreciation

 

105

 

39

 

288

 

–

 

432

Impairment losses

 

3

 

1

 

0

 

–

 

5

Reversals of impairment losses

 

(2)

 

–

 

(7)

 

–

 

(8)

Disposals

 

(36)

 

(9)

 

(207)

 

–

 

(252)

Transfers

 

31

 

(5)

 

(28)

 

–

 

(3)

Decrease in companies consolidated

 

–

 

–

 

(2)

 

–

 

(2)

Currency translation differences

 

6

 

7

 

25

 

–

 

39

December 31, 2019/January 1, 2020

 

520

 

214

 

1,291

 

–

 

2,025

Depreciation

 

128

 

42

 

287

 

–

 

456

Impairment losses

 

6

 

0

 

10

 

–

 

16

Reversals of impairment losses

 

(1)

 

–

 

(5)

 

–

 

(6)

Disposals

 

(23)

 

(6)

 

(146)

 

–

 

(175)

Transfers

 

21

 

(0)

 

(21)

 

–

 

–

Currency translation differences

 

(30)

 

(19)

 

(98)

 

0

 

(147)

December 31, 2020

 

620

 

230

 

1,319

 

0

 

2,169

 

 

 

 

 

 

 

 

 

 

 

Net carrying amount

 

 

 

 

 

 

 

 

 

 

January 1, 2019

 

912

 

177

 

587

 

480

 

2,155

December 31, 2019/January 1, 2020

 

1,322

 

219

 

618

 

221

 

2,380

December 31, 2020

 

1,231

 

185

 

482

 

258

 

2,157

As a general principle, it is regularly assessed whether there are any indications that property, plant, and equipment might be impaired.

Due to the coronavirus pandemic in 2020, impairment tests were carried out on March 31, June 30 and December 31, 2020, particularly for furniture and fixtures in own-retail stores, taking into account the potential economic impacts of the pandemic.

Irrespective of the existence of such indications, furniture and fixtures in adidas’ own-retail stores are tested annually for impairment whereby the recoverable amount is calculated using the ‘discounted cash flow method’ as part of determining the profitability of the adidas’ own-retail stores respectively.

Impairment losses recognized in the presented periods mainly relate to the company’s own-retail activities, for which contrary to expectations there will be an insufficient flow of future economic benefits. Further information on the methodology on impairment losses for adidas’ own-retail stores is provided in these notes . See Note 12

Further information on total depreciation and amortization expenses, impairment losses and reversals of impairment losses is provided in these Notes. See Note 33

In 2019, borrowing costs of € 1 million related to the construction of qualifying assets at adidas AG were capitalized at a rate of 1.3%. In 2020 no borrowing costs were capitalized.