Columbia Sportswear 2004 Annual Report Download - page 51

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COLUMBIA SPORTSWEAR COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
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, 2004, 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, 2004. 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 65 basis points.
There was no balance outstanding on this line at December 31, 2004 and 2003. At December 31, 2004, the
Company had outstanding letters of credit of $71,513,000 for firm purchase orders placed under the import line
of credit facility.
The Company also has available an unsecured and uncommitted $150,000,000 import letter of credit line
subject to annual renewal. At December 31, 2004, the Company had outstanding letters of credit of $18,554,000
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$25,010,000 at December 31, 2004). There was no balance
outstanding on this line at December 31, 2004 and 2003.
The Company’s European subsidiary has available an unsecured and uncommitted line of credit providing
for borrowing to a maximum of 20,000,000 EURO (US$27,134,000 at December 31, 2004). There was no
balance outstanding at December 31, 2004 and 2003.
The Company’s Japanese subsidiary also has an unsecured and uncommitted line of credit providing for
borrowing to a maximum of 1,000,000,000 JPY (US$9,765,000 at December 31, 2004). There was no balance
outstanding on this line at December 31, 2004 and 2003.
NOTE 7—ACCRUED LIABILITIES
Accrued liabilities consist of the following (in thousands):
December 31,
2004 2003
Accrued salaries, bonus, vacation and other benefits ................................ $22,449 $21,591
Accrued product warranty ..................................................... 9,140 8,642
Accrued cooperative advertising ................................................ 6,640 4,198
Other ..................................................................... 11,560 7,872
$49,789 $42,303
NOTE 8—LONG-TERM DEBT AND OTHER LIABILITIES
Long-term debt and other liabilities consist of the following (in thousands):
December 31,
2004 2003
Senior promissory notes payable ............................................... $14,286 $17,858
Termloan ................................................................. 2,148 3,073
Other ..................................................................... 1,418 —
17,852 20,931
Less current portion .......................................................... 5,216 4,596
$12,636 $16,335
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