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 in progress |
|
Property, plant, and equipment |
|---|---|---|---|---|---|---|---|---|---|---|
|
|
|
|
|
|
|
|
|
|
|
Acquisition cost |
|
|
|
|
|
|
|
|
|
|
January 1, 2022 |
|
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/January 1, 2023 |
|
2,290 |
|
480 |
|
1,906 |
|
230 |
|
4,907 |
Additions |
|
86 |
|
18 |
|
166 |
|
93 |
|
363 |
Disposals |
|
(35) |
|
(18) |
|
(150) |
|
(5) |
|
(207) |
Transfers |
|
25 |
|
65 |
|
20 |
|
(155) |
|
(46) |
Decrease in companies consolidated |
|
– |
|
– |
|
(0) |
|
– |
|
(0) |
Currency translation differences |
|
(66) |
|
(15) |
|
(63) |
|
(7) |
|
(152) |
December 31, 2023 |
|
2,300 |
|
530 |
|
1,878 |
|
156 |
|
4,864 |
|
|
|
|
|
|
|
|
|
|
|
Accumulated depreciation and impairment |
|
|
|
|
|
|
|
|
|
|
January 1, 2022 |
|
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/January 1, 2023 |
|
849 |
|
324 |
|
1,455 |
|
0 |
|
2,628 |
Depreciation |
|
144 |
|
49 |
|
201 |
|
– |
|
394 |
Impairment losses |
|
16 |
|
0 |
|
4 |
|
0 |
|
21 |
Reversals of impairment losses |
|
(2) |
|
(2) |
|
(8) |
|
– |
|
(12) |
Disposals |
|
(26) |
|
(15) |
|
(140) |
|
– |
|
(182) |
Transfers |
|
(21) |
|
(4) |
|
(15) |
|
(0) |
|
(40) |
Decrease in companies consolidated |
|
– |
|
– |
|
(0) |
|
– |
|
(0) |
Currency translation differences |
|
(37) |
|
(12) |
|
(52) |
|
(0) |
|
(101) |
December 31, 2023 |
|
922 |
|
340 |
|
1,445 |
|
0 |
|
2,707 |
|
|
|
|
|
|
|
|
|
|
|
Net carrying amount |
|
|
|
|
|
|
|
|
|
|
January 1, 2022 |
|
1,389 |
|
197 |
|
458 |
|
212 |
|
2,256 |
December 31, 2022/January 1, 2023 |
|
1,442 |
|
156 |
|
450 |
|
230 |
|
2,279 |
December 31, 2023 |
|
1,378 |
|
190 |
|
434 |
|
156 |
|
2,157 |
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 as part of the cash-generating unit are tested annually for impairment, whereby the recoverable amount (value in use) of the cash-generating unit, as part of determining the profitability of adidas’ own retail stores, is calculated using the ‘discounted cash flow method.’
Impairment losses recognized in 2023 mainly relate to the company’s own retail activities, for which, contrary to initial expectations, no sufficient future economic benefit is expected.
In 2023, impairment losses of € 21 million were recognized for property, plant and equipment. They are mainly attributable to China with € 10 million, North America with € 6 million and EMEA with € 3 million. The reversals of impairment losses of € 12 million are mainly attributable to EMEA with € 7 million and China with € 5 million. Both were recognized in the other operating expenses. These Notes provide further information on the methodology on impairment losses for adidas’ own-retail stores. 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