09 » Property, Plant and Equipment

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

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, 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)

December 31, 2020/January 1, 2021

 

1,852

 

416

 

1,800

 

258

 

4,326

Additions

 

94

 

19

 

197

 

183

 

494

Disposals

 

(47)

 

(7)

 

(231)

 

(1)

 

(285)

Transfers

 

180

 

32

 

30

 

(243)

 

(1)

Transfers to assets held for sale

 

(67)

 

(8)

 

(79)

 

(2)

 

(157)

Currency translation differences

 

80

 

21

 

76

 

17

 

195

December 31, 2021

 

2,093

 

473

 

1,794

 

212

 

4,571

 

 

 

 

 

 

 

 

 

 

 

Accumulated depreciation and impairment

 

 

 

 

 

 

 

 

 

 

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)

 

 

(147)

December 31, 2020/January 1, 2021

 

620

 

230

 

1,319

 

 

2,169

Depreciation

 

127

 

44

 

250

 

 

421

Impairment losses

 

1

 

 

3

 

0

 

4

Reversals of impairment losses

 

(1)

 

0

 

(8)

 

 

(9)

Disposals

 

(38)

 

(6)

 

(219)

 

0

 

(263)

Transfers

 

1

 

 

(1)

 

 

0

Transfers to assets held for sale

 

(37)

 

(7)

 

(69)

 

0

 

(113)

Currency translation differences

 

32

 

14

 

61

 

0

 

107

December 31, 2021

 

704

 

276

 

1,336

 

0

 

2,316

 

 

 

 

 

 

 

 

 

 

 

Net carrying amount

 

 

 

 

 

 

 

 

 

 

January 1, 2020

 

1,322

 

219

 

618

 

221

 

2,380

December 31, 2020/January 1, 2021

 

1,231

 

185

 

482

 

258

 

2,157

December 31, 2021

 

1,389

 

197

 

458

 

212

 

2,256

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

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

Impairment losses recognized in the reported financial years mainly relate to the company’s own-retail activities, for which, contrary to expectations, no sufficient future economic benefit is expected. Further information on the methodology on impairment losses for adidas’ own-retail stores is provided in these notes. See Note 10

Further information on total depreciation and amortization expenses, impairment losses, and reversals of impairment losses is provided in these Notes. See Note 31