Columbia Sportswear 2000 Annual Report Download - page 50

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COLUMBIA SPORTSWEAR COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
ratably over the life of the option. Gains and losses arising from foreign currency forward and purchased option
contracts, and cross-currency swap transactions are recognized in cost of goods sold or selling, general and
administrative expenses as oÅsets of gains and losses resulting from the underlying hedged transactions. Hedge
eÅectiveness is determined by evaluating whether gains and losses on hedges will oÅset gains and losses on the
underlying exposures. This evaluation is performed at inception of the hedge and periodically over the life of
the hedge.
At December 31, 2000 and 1999, the Company had approximately $47,201,000 and $29,500,000
(notional) in forward exchange contracts. The net derivative losses included in the company's liabilities and
deferred in other comprehensive income was $1,615,000 and $73,000 at December 31, 2000 and 1999,
respectively.
The counterparties to derivative transactions are major Ñnancial institutions with high investment grade
credit ratings. However, this does not eliminate the Company's exposure to credit risk with these institutions.
This credit risk is generally limited to the unrealized gains in such contracts should any of these counterparties
fail to perform as contracted and is immaterial to any one institution at December 31, 2000 and 1999. To
manage this risk, the Company has established strict counterparty credit guidelines, which are continually
monitored and reported to Senior Management according to prescribed guidelines. As a result, the Company
considers the risk of counterparty default to be minimal.
SUPPLEMENTAL INFORMATION Ì QUARTERLY FINANCIAL DATA (Unaudited)
The following table summarizes the Company's quarterly Ñnancial data for the past two years ending
December 31, 2000 (in thousands, except per share amounts):
First Quarter Second Quarter Third Quarter Fourth Quarter
2000
Net sales ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $108,437 $97,155 $247,346 $161,887
Gross proÑt ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 46,538 43,729 116,167 73,702
Net income ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 3,272 3,618 38,218 13,503
Net income per share Ì basic ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0.13 0.14 1.49 0.53
Ì dilutedÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0.13 0.14 1.44 0.51
1999
Net sales ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 89,214 $71,416 $187,568 $122,305
Gross proÑt ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 32,614 31,300 89,471 57,509
Net income (loss) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 240 (238) 23,891 9,115
Net income (loss) per share Ì basic ÏÏÏÏÏÏÏÏÏÏÏ 0.01 (0.01) 0.94 0.36
Ì diluted ÏÏÏÏÏÏÏÏÏÏ 0.01 (0.01) 0.93 0.35
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