Columbia Sportswear 2004 Annual Report Download - page 52

COLUMBIA SPORTSWEAR COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
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. At
December 31, 2004, 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$2,148,000 was outstanding at December 31, 2004) for general working capital requirements, bearing an
interest rate of 1.71% and 1.72% at December 31, 2004 and 2003, respectively. Principal and interest payments
are made semi-annually through June 2006.
Other amounts primarily include installment payments on purchase obligations made in the ordinary course
of business for non-product purchases.
Principal payments due on these notes at December 31, 2004 were as follows (in thousands):
Year ended
December 31,
2005 ........................................................... $ 5,216
2006 ........................................................... 5,224
2007 ........................................................... 3,708
2008 ........................................................... 3,698
2009 ........................................................... 6
$17,852
NOTE 9—SHAREHOLDERS’ EQUITY
On May 16, 2002, the Company’s shareholders approved an increase in the number of authorized shares of
common stock from 50,000,000 shares to 125,000,000 shares. At December 31, 2004 and 2003, 40,126,381 and
40,253,235 shares of common stock were issued and outstanding, respectively.
On June 9, 1999, the Company’s shareholders approved the 1999 Employee Stock Purchase Plan (“ESPP”).
There are 750,000 shares of common stock authorized for issuance under the ESPP, which allows qualified
employees of the Company to purchase shares on a quarterly basis up to fifteen percent of their respective
compensation. The purchase price of the shares is equal to eighty five percent of the lesser of the closing price of
the Company’s common stock on the first or last trading day of the respective quarter. At December 31, 2004 and
2003, 250,552 and 204,493 shares of common stock, respectively, had been issued under the ESPP.
In April 2004, the Company’s Board of Directors authorized the repurchase of up to $100 million of the
Company’s common stock. In January 2005, the Company’s Board of Directors authorized the repurchase of up
to an additional $100 million of the Company’s common stock. Shares of the Company’s common stock may be
purchased in the open market or through privately negotiated transactions, subject to market conditions. The
repurchase program does not obligate the Company to acquire any specific number of shares or to acquire shares
over any specified period of time. At December 31, 2004, the Company had repurchased 798,356 shares under
this program at an aggregate purchase price of $43.1 million.
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