Columbia Sportswear 2009 Annual Report Download - page 53

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COLUMBIA SPORTSWEAR COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
resulting from the inability of the Company’s customers to make required payments. The allowance for doubtful
accounts was $7,347,000 and $9,542,000 at December 31, 2009 and 2008, respectively.
Inventories:
Inventories are carried at the lower of cost or market. Cost is determined using the first-in, first-out method.
The Company periodically reviews its inventories for excess, close-out or slow moving items and makes
provisions as necessary to properly reflect inventory value.
Property, plant, and equipment:
Property, plant and equipment are stated at cost, net of accumulated depreciation. Depreciation is provided
using the straight-line method over the estimated useful lives of the assets. The principal estimated useful lives
are: buildings and building improvements, 15-30 years; land improvements, 15 years; furniture and fixtures, 3-10
years; and machinery and equipment, 3-5 years. Leasehold improvements are depreciated over the lesser of the
estimated useful life of the improvement, which is most commonly 7 years, or the remaining term of the
underlying lease.
The interest-carrying costs of capital assets under construction are capitalized based on the Company’s
weighted average borrowing rates if there are any outstanding borrowings. There was no capitalized interest for
the years ended December 31, 2009, 2008 and 2007.
Impairment of long-lived assets:
Long-lived assets are amortized over their useful lives and are measured for impairment only when events
or circumstances indicate the carrying value may be impaired. In these cases, the Company estimates the future
undiscounted cash flows to be derived from the asset or asset group to determine whether a potential impairment
exists. When reviewing for retail store impairment, identifiable cash flows are measured at the individual store
level. If the sum of the estimated undiscounted cash flows is less than the carrying value of the asset, the
Company recognizes an impairment loss, measured as the amount by which the carrying value exceeds the
estimated fair value of the asset. Impairment charges for long-lived assets are included in selling, general and
administrative expense and were immaterial for the years ended December 31, 2009, 2008 and 2007.
Intangibles and other non-current assets:
Intangible assets with indefinite useful lives are not amortized and are periodically evaluated for
impairment. Intangible assets that are determined to have finite lives are amortized using the straight-line method
over their useful lives.
The following table summarizes the Company’s identifiable intangible assets (in thousands):
December 31, 2009 December 31, 2008
Gross Carrying
Amount
Accumulated
Amortization
Gross Carrying
Amount
Accumulated
Amortization
Intangible assets subject to amortization:
Patents ................................. $ 898 $(643) $ 898 $(534)
Intangible assets not subject to amortization:
Trademarks and trade names ................ $26,872 $26,872
Goodwill ............................... 12,659 12,659
$39,531 $39,531
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