Columbia Sportswear 2003 Annual Report Download - page 51

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COLUMBIA SPORTSWEAR COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The Company’s European subsidiary has two separate unsecured and uncommitted lines of credit providing
for borrowing to a maximum of 20,000,000 EURO per credit line (combined US$50,314,000 at December 31,
2003). There was no balance outstanding at December 31, 2003 and 2002. These lines accrue interest based on
Euribor plus 0.5% and Eonia plus 0.55% respectively.
The Company’s Japanese subsidiary also has an unsecured and uncommitted line of credit providing for
borrowing to a maximum of 1,650,000,000 JPY (US$15,367,000 at December 31, 2003). The balance
outstanding was US$0 and US$9,835,000, at an interest rate of 1.9%, at December 31, 2003 and 2002,
respectively.
NOTE 7—ACCRUED LIABILITIES
Accrued liabilities consist of the following (in thousands):
December 31,
2003 2002
Accrued salaries, bonus, vacation and other benefits ................................ $21,591 $16,161
Accrued product warranty ..................................................... 8,642 7,800
Accrued cooperative advertising reserve ......................................... 4,198 5,530
Other ..................................................................... 9,358 5,655
$43,789 $35,146
NOTE 8—LONG-TERM DEBT
Long-term debt consists of the following (in thousands):
December 31,
2003 2002
Senior promissory notes payable ............................................... $17,858 $21,429
Termloan ................................................................. 3,073 3,705
20,931 25,134
Less current portion .......................................................... 4,596 4,498
$16,335 $20,636
In connection with a distribution center expansion project, the Company entered into a note purchase
agreement. Pursuant to the note purchase agreement, the Company issued senior promissory notes in the
aggregate principal amount of $25 million, bearing an interest rate of 6.68% and maturing August 11, 2008.
Proceeds from the notes were used to finance the expansion of the Company’s distribution center in Portland,
Oregon. The Senior Promissory Notes require the Company to comply with certain ratios related to indebtedness
to earnings before interest, taxes, depreciation and amortization (“EBITDA”) and tangible net worth. As of
December 31, 2003, the Company was in compliance with these covenants.
In June 2001, the Company’s Japanese subsidiary borrowed 550,000,000 Japanese yen (for which
US$3,073,000 was outstanding at December 31, 2003) for general working capital requirements, bearing an
interest rate of 1.72% and 1.73% at December 31, 2003 and 2002, respectively. Principal and interest are paid
semi-annually from July 2001 through June 2006.
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