Columbia Sportswear 2000 Annual Report Download - page 20

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among others. In addition, we face signiÑcant competition from our own retail customers that manufacture
and market clothing and footwear under their own labels. Some of our competitors are substantially larger and
have substantially greater Ñnancial, distribution, marketing and other resources than we do. We believe the
primary competitive factors in the market for activewear are functionality, durability, style, price and brand
name, and that our product oÅerings are well positioned within the market.
Credit and Collection
We extend credit to our customers based on an assessment of a customer's Ñnancial circumstances,
generally without requiring collateral. To assist in the scheduling of production and the shipping of seasonal
products, we oÅer customers discounts for placing pre-season orders and extended payment terms for taking
delivery before the peak shipping season. These extended payment terms increase our exposure to the risk of
uncollectible receivables. Some of our signiÑcant customers have experienced Ñnancial diÇculties in the past,
and future Ñnancial diÇculties of customers could have a material adverse eÅect on our business.
Government Regulation
Many of our imports are subject to existing or potential governmental duties, tariÅs or quotas that may
limit the quantity of certain types of goods which may be imported into the United States and other countries.
In addition, these duties often comprise a material portion of the cost of the merchandise. Although we are
diligent in the monitoring of these trade restrictions, the United States or other countries could impose new or
adjusted quotas, duties, tariÅs or other restrictions, any of which could have a material adverse eÅect on our
business.
Employees
At December 31, 2000 we had 1,445 full-time employees. Of these employees, 828 were based in the
United States, 85 in Canada, 73 in Europe and 459 in Asia.
Item 2. Properties
Following is a summary of principal properties owned or leased by us. Our leases expire at various dates
through 2003.
U.S. Administrative OÇces: U.S. Distribution Facility:
Portland, Oregon (2 locations) Ì leased Portland, Oregon (1 location) Ì owned
Canadian Operation: Corporate Headquarters(1):
Strathroy, Ontario (1 location) Ì leased Portland, Oregon (1 location) Ì owned
(1) In October of 2000, we purchased an existing building and the associated land to be used as a corporate
headquarters. We are currently in the process of remodeling the facility and plan to occupy it by the
fourth quarter of Ñscal year 2001. Our current U.S. administrative oÇce lease agreements expire in 2002
and will not be renewed.
Item 3. Legal Proceedings
The Company is a party to various legal claims, actions and complaints. Although the ultimate resolution
of legal proceedings cannot be predicted with certainty, management believes that disposition of these matters
will not have a material adverse eÅect on the Company's consolidated Ñnancial statements.
Item 4. Submission of Matters to a Vote of Security Holders
None
8