Columbia Sportswear 2003 Annual Report Download - page 16

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under their own labels. Some of our competitors are substantially larger and have greater financial, distribution,
marketing and other resources than we do. We believe that the primary competitive factors in the market for
activewear are price, brand name, functionality, durability and style and that our product offerings are well
positioned within the market.
Mountain Hardwear equipment (tents and sleeping bags) compete directly with such companies as The
North Face, Inc., Sierra Designs, Kelty (American Recreational Products), Marmot, Arctery’x (Salomon USA)
and other smaller specialized brands worldwide.
Credit and Collection
We extend credit to our customers based on an assessment of a customer’s financial condition, generally
without requiring collateral. To assist in the scheduling of production and the shipping of seasonal products, we
offer customers discounts for placing pre-season orders and extended payment terms for taking delivery before
the peak shipping season. These extended payment terms increase our exposure to the risk of uncollectible
receivables. Some of our significant customers have experienced financial difficulties in the past, and future
financial difficulties of our customers could have a material adverse effect on our business.
Government Regulation
Many of our imports are subject to existing or potential governmental duties, tariffs or quotas that may limit
the quantity of certain types of goods that may be imported into the United States and other countries. In
addition, these duties often represent a material portion of the cost of the merchandise. Although we diligently
monitor these trade restrictions, the United States or other countries could impose new or adjusted quotas, duties,
tariffs or other restrictions, any of which could have a material adverse effect on our business.
Employees
At December 31, 2003 we had 2,092 full-time employees. Of these employees, 1,119 were based in the
United States, 141 in Canada, 184 in Europe and 648 in Asia.
Available Information
We make available free of charge on or through our web site at www.columbia.com our annual reports on
Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to these reports filed
or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act as soon as reasonably practicable after we
file these materials with the Securities and Exchange Commission.
Item 2. PROPERTIES
Following is a summary of principal properties owned or leased by us.
Corporate Headquarters:
Portland, Oregon (1 location) – owned
Canadian Operation (1):
Strathroy, Ontario (1 location) – leased
U.S. Distribution Facility:
Portland, Oregon (1 location) – owned
Europe Distribution Facility:
Cambrai, France (1 location) – owned
(1) Lease expires at the end of 2011.
Item 3. LEGAL PROCEEDINGS
From time to time in our normal course of business we are a party to various legal claims, actions and
complaints. Currently, we do not have any pending litigation that is material.
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