Columbia Sportswear 2010 Annual Report Download - page 43

Net cash used in investing activities was $91.2 million in 2010 compared to net cash used in investing
activities of $33.2 million in 2009. For the 2010 period, net cash used in investing activities primarily consisted
of $46.1 million for the net purchases of short-term investments, $28.8 million for capital expenditures and
$16.3 million for acquisitions. For the 2009 period, net cash used in investing activities primarily consisted of
capital expenditures of $33.1 million.
Net cash used in financing activities was $82.3 million in 2010 compared to $29.6 million in 2009. For the
2010 period, net cash used in financing activities primarily consisted of dividend payments of $75.4 million,
including a $50.5 million special dividend paid in December 2010, and the repurchase of common stock at an
aggregate price of $13.8 million, partially offset by proceeds from issuance of common stock of $6.5 million. For
the 2009 period, 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.
To fund our domestic working capital requirements, we have an unsecured, committed $125.0 million
revolving line of credit available. We entered into this credit agreement effective June 15, 2010. At
December 31, 2010, no balance was outstanding under this line 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 the parent company with a combined limit of approximately $81.9 million at December 31, 2010,
of which $3.4 million is designated as a European customs guarantee. At December 31, 2010, 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, 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 and fourth calendar quarters. This pattern has resulted primarily
from the timing of shipments of fall season products to wholesale customers and proportionally higher sales from
our direct-to-consumer operations in the fourth quarter. 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 ended December 31,
2011 2012 2013 2014 2015 Thereafter Total
Inventory purchase obligations (1) ..... $323,327 $ — $ — $ — $ — $ — $323,327
Operating leases (2): ................ 34,115 31,244 29,031 25,332 23,649 110,415 253,786
(1) See Inventory Purchase Obligations in Note 13 of Notes to Consolidated Financial Statements.
(2) See Operating Leases in Note 13 of Notes to Consolidated Financial Statements.
We have recorded liabilities for net unrecognized tax benefits related to income tax uncertainties in our
Consolidated Balance Sheet at December 31, 2010 of approximately $19.7 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 10 of Notes to Consolidated Financial Statements.
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