Columbia Sportswear 2009 Annual Report Download - page 41

Cash used in financing activities was $29.6 million in 2009 compared to $102.4 million in 2008. In 2009,
net cash used in financing activities included dividend payments of $22.3 million and the repurchase of common
stock at an aggregate price of $7.4 million. In 2008, net cash used in financing activities included the repurchase
of common stock at an aggregate price of $83.9 million and dividend payments of $22.1 million, partially offset
by proceeds from the issuance of common stock under employee stock plans of $3.5 million.
To fund our domestic working capital requirements, we have available unsecured revolving lines of credit
with aggregate seasonal limits ranging from $50 million to $125 million, of which $25 million to $100 million is
committed. At December 31, 2009, no balance was outstanding under these lines of credit and we were in
compliance with all associated covenants. Internationally, our subsidiaries have local currency operating lines of
credit in place guaranteed by us with a combined limit of approximately $105.1 million at December 31, 2009, of
which $3.6 million is designated as a European customs guarantee. At December 31, 2009, no balance was
outstanding under these lines of credit.
We expect to fund our future capital expenditures with existing cash, operating cash flows and credit
facilities. If the need arises for additional expenditures, we may need to seek additional funding. Our ability to
obtain additional financing will depend on many factors, including prevailing market conditions, our financial
condition, and our ability to negotiate favorable terms and conditions. Financing may not be available on terms
that are acceptable or favorable to us, if at all.
Our operations are affected by seasonal trends typical in the outdoor apparel industry, and have historically
resulted in higher sales and profits in the third calendar quarter. This pattern has resulted primarily from the
timing of shipments to wholesale customers for the fall season. We believe that our liquidity requirements for at
least the next 12 months will be adequately covered by existing cash, cash provided by operations and existing
short-term borrowing arrangements.
The following table presents our estimated contractual commitments (in thousands):
Year ending December 31,
2010 2011 2012 2013 2014 Thereafter Total
Inventory purchase obligations (1) ..... 258,069 ———— —258,069
Operating leases (2):
Non-related parties ............. 28,379 27,534 26,137 25,678 23,869 128,672 260,269
Related party .................. 625 625 72 72 54 — 1,448
We have recorded liabilities for net unrecognized tax benefits related to income tax uncertainties in our
Consolidated Balance Sheet at December 31, 2009 of approximately $20.9 million; however, they have not been
included in the table above because we are uncertain about whether or when these amounts may be settled. See
Note 9 of Notes to Consolidated Financial Statements.
(1) Inventory purchase obligations consist of open production purchase orders for sourced apparel, footwear,
accessories and equipment, and materials used to manufacture apparel. The reported amounts exclude
product purchase liabilities included in accounts payable on the Consolidated Balance Sheet at
December 31, 2009. To support certain inventory purchase obligations, we maintain unsecured and
uncommitted lines of credit available for issuing import letters of credit. At December 31, 2009, we had
letters of credit outstanding of $7.8 million issued for purchase orders for inventory. See Off-balance Sheet
Arrangements in Note 5 of Notes to Consolidated Financial Statements for further disclosure.
(2) Operating lease obligations include retail space operating leases, which often include real estate taxes,
insurance, common area maintenance (“CAM”), and other costs in addition to base rent. Operating lease
obligations listed above do not include real estate taxes, insurance, CAM, and other costs for which we are
obligated. Total expenses for real estate taxes, insurance, CAM, and other costs related to retail space
operating leases for the year ended December 31, 2009 was $7.2 million and is included in SG&A expense
in the Consolidated Statement of Operations. These operating lease commitments are not reflected on the
Consolidated Balance Sheet.
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