10 » Right-of-Use Assets
The company recognized right-of-use assets in an amount of € 2.6 billion (2020: € 2.4 billion). The following table presents a reconciliation of the carrying amount of right-of-use assets:
|
|
Land and buildings |
|
Technical equipment and machinery |
|
Other equipment, furniture, and fixtures |
|
Right-of-use assets |
|---|---|---|---|---|---|---|---|---|
January 1, 2021 |
|
2,317 |
|
88 |
|
25 |
|
2,430 |
Additions |
|
500 |
|
2 |
|
19 |
|
521 |
Disposals |
|
– |
|
– |
|
– |
|
– |
Transfer to assets held for sale |
|
(94) |
|
– |
|
(1) |
|
(94) |
Depreciation |
|
(563) |
|
(42) |
|
(20) |
|
(625) |
Impairment losses |
|
(3) |
|
– |
|
– |
|
(3) |
Reversal of impairment losses |
|
25 |
|
– |
|
– |
|
25 |
Currency translation differences |
|
89 |
|
0 |
|
0 |
|
89 |
Net change due to remeasurements |
|
222 |
|
4 |
|
(0) |
|
226 |
December 31, 2021 |
|
2,493 |
|
52 |
|
24 |
|
2,569 |
|
|
Land and buildings |
|
Technical equipment and machinery |
|
Other equipment, furniture, and fixtures |
|
Right-of-use assets |
|---|---|---|---|---|---|---|---|---|
January 1, 2020 |
|
2,785 |
|
100 |
|
46 |
|
2,931 |
Additions |
|
456 |
|
36 |
|
14 |
|
507 |
Disposals |
|
(75) |
|
(0) |
|
(8) |
|
(83) |
Depreciation |
|
(611) |
|
(48) |
|
(25) |
|
(684) |
Impairment losses |
|
(69) |
|
– |
|
(1) |
|
(69) |
Reversal of impairment losses |
|
1 |
|
– |
|
– |
|
1 |
Currency translation differences |
|
(161) |
|
(0) |
|
(2) |
|
(162) |
Other changes |
|
(10) |
|
(0) |
|
(0) |
|
(10) |
December 31, 2020 |
|
2,317 |
|
88 |
|
25 |
|
2,430 |
As a general principle, it is regularly assessed whether there are any indications that right-of-use assets might be impaired. Irrespective of the existence of such indications, right-of-use assets 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.’
Reversals of impairment losses/impairment losses for right-of-use assets recognized in the reported financial years mainly relate to the company’s own-retail activities, for which, contrary to expectations based in 2020, there will be a sufficient/insufficient future economic benefits. The income from reversal of impairments in 2021 amounts to € 25 million and is mainly related to EMEA with € 23 million.
In 2020, impairment losses where recognized for non-current assets (e.g., property, plant, and equipment, right-of use assets and intangible assets including goodwill) as a result of the coronavirus pandemic. They related to EMEA with € 31 million; North America with € 16 million; Greater China with € 18 million; and Asia-Pacific with € 2 million.
Income from sub-leasing of right-of-use assets recognized in the consolidated income statement in 2021 amount to € 2.7 million (2020: € 2.4 million).
Further information on total depreciation and amortization expenses, impairment losses and reversals of impairment losses is provided in these Notes. Note 31