Columbia Sportswear 2001 Annual Report Download - page 36

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COLUMBIA SPORTSWEAR COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì (Continued)
Advertising costs:
Advertising costs are expensed as incurred. Advertising expense was $35,011,000, $27,343,000, and
$20,725,000 for the years ended December 31, 2001, 2000, and 1999, respectively.
Product warranty:
Substantially all of the Company's products carry lifetime limited warranty provisions for defects in
quality and workmanship. A reserve is established at the time of sale to cover estimated warranty costs based
on the Company's history of warranty repairs and replacements. Warranty expense was approximately
$2,672,000, $3,325,000, and $3,127,000 for the years ended December 31, 2001, 2000 and 1999, respectively.
Recent Accounting Pronouncements
In June 2001, the Financial Accounting Standards Board (""FASB'') issued Statement of Financial
Accounting Standards (""SFAS'') No. 142, ""Goodwill and Other Intangible Assets.'' The statement
eliminates amortization of goodwill and certain intangible assets with indeÑnite useful lives and instead sets
forth methods to periodically evaluate these assets for impairment. SFAS No. 142 becomes eÅective for the
Company beginning January 1, 2002. Management has evaluated the impact of the adoption of SFAS No. 142
and has determined that this standard will not have a material impact on the Company's Ñnancial position or
the results of operations.
In August 2001, the FASB issued SFAS No. 144, ""Accounting for the Impairment or Disposal of Long-
Lived Assets.'' SFAS No. 144 establishes a single accounting model for long-lived assets to be disposed of and
replaces SFAS No. 121, ""Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to
Be Disposed Of,'' and APB Opinion No. 30, ""Reporting Results of Operations Ì Reporting the EÅects of
Disposal of a Segment of a Business.'' The provisions of this statement are eÅective beginning with Ñscal years
starting after December 15, 2001. Management has evaluated the impact of the adoption of this standard and
has determined that this standard will not have a material impact on the Company's Ñnancial position or the
results of operations.
Note 3 Ì Inventories, Net
Inventories consist of the following (in thousands):
December 31,
2001 2000
Raw materialsÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 4,209 $ 4,298
Work in process ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 6,156 9,217
Finished goods ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 109,221 94,828
119,586 108,343
Less inventory valuation allowance ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (4,697) (3,055)
$114,889 $105,288
30