Columbia Sportswear 2009 Annual Report Download - page 59

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COLUMBIA SPORTSWEAR COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The Company’s Canadian subsidiary has available an unsecured and uncommitted line of credit guaranteed
by the parent company providing for borrowing to a maximum of C$30,000,000 (US$28,485,000) at
December 31, 2009. The revolving line accrues interest at the bank’s Canadian prime rate. There was no balance
outstanding under this line at December 31, 2009 and 2008.
The Company’s European subsidiary has available two separate unsecured and uncommitted lines of credit
guaranteed by the parent company providing for borrowing to a maximum of 30,000,000 and 20,000,000 euros
respectively (combined US$71,602,000) at December 31, 2009, of which US$3,580,000 of the 20,000,000 euro
line is designated as a European customs guarantee. These lines accrue interest based on the ECB refinancing
rate plus 50 basis points and EONIA plus 75 basis points, respectively. There was no balance outstanding under
either line at December 31, 2009 or 2008.
The Company’s Japanese subsidiary has an unsecured and uncommitted line of credit guaranteed by the
parent company providing for borrowing to a maximum of US$5,000,000 at December 31, 2009. The revolving
line accrues interest at the bank’s Best Lending Rate. There was no balance outstanding under this line at
December 31, 2009 and 2008.
Off-Balance Sheet Arrangements
The Company has arrangements in place to facilitate the import and purchase of inventory through import
letters of credit. The Company has available unsecured and uncommitted import letters of credit in the aggregate
amount of $65,000,000 subject to annual renewal. At December 31, 2009, the Company had outstanding letters
of credit of $7,771,000 for purchase orders for inventory under this arrangement.
NOTE 6—ACCRUED LIABILITIES
Accrued liabilities consist of the following (in thousands):
December 31,
2009 2008
Accrued salaries, bonus, vacation and other benefits ........................ $34,711 $29,437
Accrued product warranty ............................................. 12,112 9,746
Accrued cooperative advertising ........................................ 4,358 6,457
Other ............................................................. 16,131 12,508
$67,312 $58,148
NOTE 7—OTHER LONG-TERM LIABILITIES
Other long-term liabilities consist of deferred rent obligations, the effect of straight-line rent under various
operating leases, rental asset retirement obligations, liabilities to participants in the Company’s nonqualified
deferred compensation plan, installment purchase obligations for non-inventory purchases made in the ordinary
course of business and long-term severance liabilities. Deferred rent, straight-line rent, and rental asset retirement
obligation liabilities were $14,218,000 and $10,126,000 at December 31, 2009 and 2008, respectively. The
corresponding lease obligations for these deferred and straight-line rent liabilities are disclosed in Note 11.
Principal payments due on other long-term liabilities are immaterial.
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