Annual Report 2023


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03 » Discontinued Operations

The position of discontinued operations mainly includes the Reebok business, which was sold on February 28, 2022 with effect from March 1, 2022. The majority of the purchase price was paid at closing, with the remainder comprising deferred and contingent consideration. The fair value of earn-out components was determined using the discounted cash flow method, considering Monte Carlo Simulations.

The profit from discontinued operations for 2023 in the amount of € 44 million (2022: € 384 million) is fully attributable to the shareholders of adidas AG.

In the event the operations of the Reebok business achieve certain performance criteria during the period March 1, 2022, to December 31, 2031, specified as earn-out components in the sale agreement, additional cash consideration of up to € 500 million will be due. At the time of the sale, the fair value of the consideration was determined to be € 247 million. It has been recognized as a financial asset at fair value through profit and loss.

At year-end 2023, the fair value was reestimated to be € 301 million (2022: € 227 million). The gain of € 74 million compared with the fair value at year-end 2022 is presented in discontinued operations net of related income tax.

Additionally, as contemplated in the sale agreement relating to the Reebok business, the sale was subject to deferred considerations for inventory and contractually specified items, which were settled by the end of the first half year 2023 (2022: € 274 million).