Columbia Sportswear 2003 Annual Report Download - page 31

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In May 2003, the FASB issued SFAS No. 150, “Accounting for Certain Financial Instruments with
Characteristics of Both Liabilities and Equity,” which establishes standards for how an issuer classifies and
measures certain financial instruments with characteristics of both liabilities and equity. It requires that an issuer
classify a financial instrument that is within its scope as a liability (or an asset in some circumstances). Many of
those instruments were previously classified as equity. This statement is effective for financial instruments
entered into or modified after May 31, 2003, and otherwise is effective at the beginning of the first interim period
beginning after June 15, 2003, except for mandatorily redeemable financial instruments of nonpublic entities.
The adoption of this statement has not had a material effect on our financial position, results of operations or cash
flows.
Forward Looking Statements
This Annual Report, including Item 1 of Part I and Items 7 and 7(a) of Part II, contains forward-looking
statements. Forward-looking statements include any statements related to our expectations regarding future
performance or conditions, including any statements regarding:
• potential sales growth in domestic and international markets;
• sales growth in merchandise categories;
• increased sales to department stores and footwear specialty shops;
• implementation and performance of new management information systems and distribution facilities;
• access to raw materials and factory capacity; and
• financing and working capital requirements and resources.
These forward-looking statements, and others we make from time to time, are subject to many risks and
uncertainties. Many factors could cause actual results to differ materially from those projected in forward-
looking statements, including the risks described below under the heading “Factors That May Affect Our
Business and the Price of Our Common Stock.” Risk factors that may affect our business and liquidity, future
financing and working capital requirements and availability include:
• international risks, including trade disruptions, political instability in foreign markets, exchange rate
fluctuations, and changes in quotas and tariffs or other duties;
• unfavorable economic conditions generally and weakness in consumer confidence;
• the financial health of our customers;
• our ability to fully and cost-effectively integrate Mountain Hardwear into our existing operations;
• our ability to effectively deliver products to customers in a timely manner despite potential service
interruptions;
• effects of unseasonable weather (including, for example, warm weather in the winter and cold weather
in the spring, each of which affects demand for our products);
• our reliance on product acceptance by consumers;
• our dependence on independent manufacturers and suppliers;
• the effectiveness of our sales and marketing efforts;
• intense competition in the industry (which we expect to increase);
• our ability to achieve and manage growth effectively;
• business disruptions and costs arising from disease outbreak, acts of terrorism, or military activities
around the globe;
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