Revenue and Expenses - For the years ended December 31, 2024 and 2023, the company generated 72.8% and 69.4% of its revenue in currencies other than U.S. dollars, while 78.1% and 75.4% of its operating expenses were incurred in non-U.S. dollar currencies[555]. - The company recognizes revenue from services mainly upon the delivery of goods, with specific accounting practices for wholesale and direct-to-consumer channels[569][572]. Foreign Currency Exposure - A simultaneous strengthening of 10% in the U.S. dollar against foreign currencies would increase the fair value of net monetary assets and liabilities by 62.8 million for the years ended December 31, 2024 and 2023, respectively[556]. - As of December 31, 2024 and 2023, 22.7% and 33.1% of the company's assets and 11.4% and 76.2% of its liabilities were subject to foreign currency exposure[556]. Liquidity and Credit Facilities - The company has a five-year revolving credit facility of $710 million, which was not utilized as of December 31, 2024, to assist with short-term liquidity needs[560]. - The average payment time for outstanding sales was approximately 40 days as of December 31, 2024, with the largest 20 customers representing about 33% of total accounts receivable[563]. Innovation and R&D - The company emphasizes innovation through continued investment in research and development at various innovation centers, focusing on meeting the evolving needs of athletes and consumers[564]. Inventory and Impairment - Inventory is carried at the lower of cost and net realizable value, requiring estimates related to future selling prices and customer behavior[575]. - Impairment testing is performed annually for goodwill, with key assumptions including forecasted cash flows and estimated discount rates[578][580]. Share-Based Compensation - Share-based compensation expense is recognized ratably over the requisite service period, with no stock options granted in 2024[583]. - Modifications to employee awards that increase total fair value will be recognized, with incremental fair value calculated based on the difference between modified and original awards[585]. - When modifications occur during the vesting period, the incremental fair value is included in the measurement of recognized services from the modification date until vesting[585]. - If a modification changes a share-based payment from cash-settled to equity-settled, the liability is remeasured and reclassified to equity[585]. Accounting Guidance - The company has adopted new accounting guidance, which is detailed in Note 2 of the audited consolidated financial statements[587].
Amer Sports(AS) - 2024 Q4 - Annual Report