09 » Property, Plant and Equipment
The following table presents a reconciliation of the carrying amount of property, plant, and equipment:
|
|
Land and buildings |
|
Technical equipment and machinery |
|
Other equipment, furniture, and fixtures |
|
Construction |
|
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. Note 10
Further information on total depreciation and amortization expenses, impairment losses, and reversals of impairment losses is provided in these Notes. Note 31