Columbia Sportswear 2003 Annual Report Download - page 50

COLUMBIA SPORTSWEAR COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
NOTE 5—PROPERTY, PLANT, AND EQUIPMENT, NET
Property, plant, and equipment consist of the following (in thousands):
December 31,
2003 2002
Land.................................................................... $ 7,312 $ 6,100
Buildings ................................................................ 73,332 51,795
Machineryandequipment................................................... 105,666 79,129
Furnitureandfixtures ...................................................... 9,460 8,050
Leasehold improvements .................................................... 9,889 10,002
Construction in progress .................................................... 12,147 39,919
217,806 194,995
Less accumulated depreciation ............................................... 91,559 70,480
$126,247 $124,515
NOTE 6—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, (1) $50,000,000 during the period of July 15 through
December 15 of the calendar year and (2) $5,000,000 at all other times. The maturity date of this agreement is
July 1, 2005. Interest, payable monthly, is computed at the bank’s prime rate minus up to 2.05% per annum. The
agreement also includes a fixed 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, 2003 and 2002. 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, 2003, 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 $125,000,000 import line of credit at December 31, 2003, to issue documentary
letters of credit on a sight basis and are renewed on an annual basis. The combined limit under this agreement
was $150,000,000 at December 31, 2003. The revolving line accrues interest at the bank’s prime rate minus 2%
per annum. The revolving line also has a fixed rate option based on the bank’s cost of funds plus 55 basis points.
There was no balance outstanding on this line as of December 31, 2003 and 2002. At December 31, 2003, the
Company had outstanding letters of credit of $83,005,000 for firm purchase orders placed under the import line
of credit facility.
The Company also has available an unsecured and uncommitted $125,000,000 import letter of credit line
subject to annual renewal. At December 31, 2003, the Company had outstanding letters of credit of $27,089,000
for firm purchase orders placed under this facility.
The Company’s Canadian subsidiary has available an unsecured and uncommitted line of credit providing
for borrowing to a maximum of C$30,000,000 (US$23,143,000 at December 31, 2003). There was no balance
outstanding on this line as of December 31, 2003 and 2002.
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