10 » Right-of-Use Assets

The following table presents a reconciliation of the carrying amount of right-of-use assets:

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 (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.’

In 2025, impairment losses of € 26 million were recognized, with the full amount attributable to the company’s own retail activities, for which, in contrast to expectations in the previous year, lower future economic benefits are expected.

Impairment losses relating to retail stores, which are shown under property, plant, and equipment and right-of-use assets, are mainly attributable to Greater China with € 15 million, North America with € 9 million and Emerging Markets with € 4 million. Discount rates between 0.1% and 25.8% were used to calculate the impairment for the value in use (2024: 1.1%-34.0%). The recoverable amounts of adidas’ own retail stores break down into North America at € 55 million, Greater China at € 44 million, Emerging Markets at € 31 million, Europe at € 25 million, Japan/South Korea at € 22 million and Latin America at € 6 million.

In 2025, reversals of impairment losses of € 3 million were incurred. They mainly result from Emerging Markets and Europe. The impairment losses and reversals of impairment losses were recognized in the other operating expenses.

In 2025, reclassifications totaling € 3 million were made from property, plant, and equipment to right-of-use-assets.

Further information on total depreciation and amortization expenses, impairment losses and reversals of impairment losses is provided in these Notes. SEE NOTE 31