Columbia Sportswear 2001 Annual Report Download - page 13

We currently distribute our apparel and footwear products in Europe through two diÅerent distribution
centers which are both located in The Netherlands and are both owned and operated by an independent
logistics company. In 2001 we began construction of a new 269,000 square foot distribution facility in
Cambrai, France, which we will own and operate. We anticipate that the new facility will be operational for
the spring 2003 shipping season. This new facility will ultimately replace both distribution centers in The
Netherlands; however, only the apparel facility will initially be replaced. This timetable, however, is subject to
a number of factors, including construction of the new facility on acceptable terms, our ability to integrate a
new facility with existing operations, the availability of labor, raw materials and other inputs on anticipated
terms, our ability to obtain any necessary governmental approvals in a timely fashion, and uncertainties
associated with doing business abroad.
Other International
We have distributed our products through independent distributors in Japan since the mid-1970s. In the
fall of 1998, we began distributing our products directly in Japan, and during 2001 we sold our products to
approximately 280 Japanese retailers. We believe that our sales approach in Japan creates an opportunity for
accelerated sales growth in this region as economic conditions improve. In 1997 we began selling our products
directly in South Korea. Our oÇces in Tokyo and Seoul coordinate sales and marketing eÅorts in Asia.
In several other countries throughout the world, we sell our products to independent distributors. These
distributors service retail customers in locations such as Australia, New Zealand, South America, Europe,
Russia and China.
Intellectual Property
We own many trademarks including ""Columbia»,'' ""Columbia Sportswear Company»,'' ""Convert»,''
""Sorel»,'' ""Bugaboo»,'' ""Bugabootoo»,'' ""Omni-Tech»,'' ""GRT»,'' ""Omni-Grip»,'' ""Columbia Interchange
System»,'' ""Tough Mother»,'' the Columbia diamond shaped logo and the Sorel polar bear. Our trademarks,
many of which are registered or subject to pending applications in the United States and other nations, are
used on a variety of items of apparel, footwear, and other products. We believe that our trademarks are of
great value, providing the consumer with an assurance that the product being purchased is high quality and
provides a good value. We also place signiÑcant value on product designs (the overall appearance and image of
our products) which, as much as trademarks, distinguishes our products in the marketplace. In addition, in
connection with the acquisition of the Sorel trademarks we acquired industrial designs and patents protecting
some Sorel styles. We are very protective of these proprietary rights and frequently take action to prevent
counterfeit reproductions or other infringing activity. In the past we have successfully resolved conÖicts over
proprietary rights through legal action and negotiated settlements. As we expand in market share, geographic
scope and product categories, intellectual property disputes are anticipated to increase as well, making it more
expensive and challenging to establish and protect our proprietary rights and to defend against claims of
infringement by others.
Backlog
We typically receive the bulk of our orders for each of the fall and spring seasons a minimum of three
months prior to the date the products are shipped to customers. Generally, the orders are subject to
cancellation prior to the date of shipment. At December 31, 2001, our backlog was $292.2 million, compared
to $321.8 million at December 31, 2000. For a variety of reasons, including the timing of shipments, timing of
order deadlines, timing of receipt of orders, product mix of customer orders and the amount of in-season
orders, backlog may not be a reliable measure of future sales for any succeeding period. In addition, for these
reasons backlog Ñgures in one year may not be directly comparable to backlog Ñgures in another year when
measured at the same date.
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