Columbia Sportswear 2000 Annual Report Download - page 39

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COLUMBIA SPORTSWEAR COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 1 Ì Basis of Presentation and Organization
Nature of the business:
Columbia Sportswear Company (the ""Company'') is a global leader in the design, manufacture,
marketing and distribution of active outdoor apparel, including outerwear, sportswear, footwear, and related
accessories.
Note 2 Ì Summary of SigniÑcant Accounting Policies
Basis of presentation:
The consolidated Ñnancial statements include the accounts of Columbia Sportswear Co. (""CSC'') and
all wholly-owned subsidiaries, including GTS Inc. (""GTS''), Columbia Sportswear Canada Ltd. (""CSCL''),
Columbia Sportswear Holdings, Ltd. (""CSHL''), Columbia Sportswear Japan Ltd. (""CSC Japan''),
Columbia Sportswear Germany GmbH (""CSC Germany''), Columbia Sportswear France SNC. (""CSC
France''), Columbia Sportswear Company Ltd. (""CSC United Kingdom''), Columbia Sportswear Korea
(""CSC Korea'') and Sorel Corporation (""Sorel'') (collectively, the ""Company''). All signiÑcant intercom-
pany balances and transactions have been eliminated.
The preparation of Ñnancial statements in conformity with accounting principles generally accepted in the
United States of America requires management to make estimates and assumptions that aÅect the reported
amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the Ñnancial
statements and the reported amounts of revenues and expenses during the reporting period. Actual results
could diÅer from these estimates and assumptions.
Certain reclassiÑcations of amounts reported in the prior period Ñnancial statements have been made to
conform to classiÑcations used in the current period Ñnancial statements.
Revenue Recognition:
Revenue for wholesale operations and licensing is recognized at the time the merchandise is shipped to
customers. Retail store revenue is recognized at the time of sale. Allowances for estimated returns are
provided when sales are recorded.
Cash and cash equivalents:
Cash and cash equivalents represent cash and short-term, highly liquid investments with maturities of
three months or less at date of acquisition.
Accounts receivable:
Accounts receivable have been reduced by an allowance for doubtful accounts, which was $5,826,000 and
$4,535,000 in 2000 and 1999, respectively. The net charges to this reserve was $3,563,000, $3,177,000,
$2,643,000 in 2000, 1999, and 1998, respectively.
Inventories:
Inventories are carried at the lower of cost or market. Cost is determined using the Ñrst-in, Ñrst-out
method.
Property, plant, and equipment:
Property, plant, and equipment are stated at cost. Depreciation of machinery and equipment, furniture
and Ñxtures and amortization of leasehold improvements is provided using the straight-line method over the
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