Columbia Sportswear 2001 Annual Report Download - page 37

COLUMBIA SPORTSWEAR COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì (Continued)
Note 4 Ì Property, Plant, and Equipment, Net
Property, plant, and equipment consist of the following (in thousands):
December 31,
2001 2000
Land ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 6,100 $ 5,766
Buildings ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 51,581 30,589
Machinery and equipment ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 70,950 61,642
Furniture and Ñxtures ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 7,705 6,624
Leasehold improvementsÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 9,203 11,329
Construction in progress ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 10,498 9,034
156,037 124,984
Less accumulated depreciationÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 55,365 48,322
$100,672 $ 76,662
Note 5 Ì Short Term Borrowings and Credit Lines
The Company has available an unsecured and committed operating line of credit providing for borrowings
in an aggregate amount not to exceed at any time outstanding (1) $50,000,000 during the period of July 15
through December 15 of the calendar year, (2) $25,000,000 during the period of December 16 through
February 15 of the calendar year and (3) $10,000,000 at all other times. The maturity date of this agreement
is June 30, 2003. Interest, payable monthly, is computed at the bank's prime rate minus up to 2.05% per
annum. The agreement also includes a Ñxed rate option based on the LIBOR rate plus up to 65 basis points.
There was no balance outstanding on this line as of December 31, 2001 and 2000. The unsecured operating
line of credit requires the Company to comply with certain covenants including a Capital Ratio, which limits
indebtedness to tangible net worth. As of December 31, 2001, the Company was in compliance with all of
these covenants. If the Company defaults on its payments, it is prohibited, subject to certain exceptions, from
making dividend payments or other distributions.
The Company has arrangements in place to facilitate the import and purchase of inventory through the
issuance of sight letters of credit. The arrangements consist of an unsecured and uncommitted revolving line of
credit of $25,000,000 and a $75,000,000 import line of credit to issue documentary letters of credit on a sight
basis and renewed on an annual basis. The combined limit under this agreement is $100,000,000. The
revolving line accrues interest at the bank's prime rate minus 2% per annum. The revolving line also has a
Ñxed rate option based on the bank's cost of funds plus 45 basis points. There was no balance outstanding on
this line as of December 31, 2001 and 2000. At December 31, 2001, the Company had $42,360,000 of Ñrm
purchase orders placed under this facility.
The Company also has available an unsecured and uncommitted $100,000,000 import letter of credit line
subject to annual renewal. At December 31, 2001, the Company had $46,844,000 of Ñrm purchase orders
placed under this facility.
The Company is party to certain Buying Agency Agreements that serve to facilitate the short-term
Ñnancing and importation of goods. Domestically, the Company has allowed these agreements to expire during
Ñscal year 2001, however, these import and related Ñnancing services will continue to be provided to the
Company through March 31, 2002. Although these agreements will expire domestically, the Company's
Canadian subsidiary will continue to utilize its agreements to Ñnance the purchase of goods outside of the U.S.
The Canadian subsidiary has an available line of credit under this Buying Agency Agreement of C$19,000,000
(US$11,935,000 at December 31, 2001). Borrowings bear interest at 35 basis points above the one month
LIBOR rate, which was 2.5% as of December 31, 2001. The balance outstanding on the import line of credit
31