10 » 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 in progress |
|
Property, plant, and equipment |
|---|---|---|---|---|---|---|---|---|---|---|
|
|
|
|
|
|
|
|
|
|
|
Acquisition cost |
|
|
|
|
|
|
|
|
|
|
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 |
Additions |
|
125 |
|
17 |
|
232 |
|
131 |
|
504 |
Disposals |
|
(42) |
|
(13) |
|
(161) |
|
(4) |
|
(218) |
Transfers |
|
72 |
|
(9) |
|
33 |
|
(108) |
|
(12) |
Decrease in companies consolidated |
|
(3) |
|
(1) |
|
(2) |
|
1 |
|
(4) |
Currency translation differences |
|
45 |
|
13 |
|
9 |
|
(1) |
|
66 |
December 31, 2022 |
|
2,290 |
|
480 |
|
1,906 |
|
230 |
|
4,907 |
|
|
|
|
|
|
|
|
|
|
|
Accumulated depreciation and impairment |
|
|
|
|
|
|
|
|
|
|
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 |
Depreciation |
|
139 |
|
47 |
|
242 |
|
– |
|
429 |
Impairment losses |
|
33 |
|
6 |
|
27 |
|
– |
|
66 |
Reversals of impairment losses |
|
(1) |
|
(0) |
|
(2) |
|
– |
|
(3) |
Disposals |
|
(32) |
|
(12) |
|
(150) |
|
(0) |
|
(194) |
Transfers |
|
(0) |
|
(0) |
|
0 |
|
– |
|
(0) |
Decrease in companies consolidated |
|
(3) |
|
(1) |
|
(2) |
|
0 |
|
(6) |
Currency translation differences |
|
9 |
|
8 |
|
5 |
|
(0) |
|
21 |
December 31, 2022 |
|
849 |
|
324 |
|
1,455 |
|
0 |
|
2,628 |
|
|
|
|
|
|
|
|
|
|
|
Net carrying amount |
|
|
|
|
|
|
|
|
|
|
January 1, 2021 |
|
1,231 |
|
185 |
|
482 |
|
258 |
|
2,157 |
December 31, 2021/ |
|
1,389 |
|
197 |
|
458 |
|
212 |
|
2,256 |
December 31, 2022 |
|
1,442 |
|
156 |
|
450 |
|
230 |
|
2,279 |
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 adidas’ own retail stores, is calculated using the ‘discounted cash flow method.’
Impairment losses recognized in 2022 mainly relate to the company’s own retail activities and property, plant, and equipment of Russia and Ukraine, for which, contrary to initial expectations, no sufficient future economic benefit is expected. This Notes provide further information on the impairment losses. SEE NOTE 11
Further information on total depreciation and amortization expenses, impairment losses, and reversals of impairment losses is provided in these Notes. SEE NOTE 32
