Columbia Sportswear 2010 Annual Report Download - page 59

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COLUMBIA SPORTSWEAR COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Country and supplier concentrations:
The Company’s products are produced by independent factories located outside the United States,
principally in Southeast Asia. Apparel is manufactured in more than 13 countries, with Vietnam and China
accounting for approximately 68% of 2010 global apparel production. Footwear is manufactured in three
countries, with China and Vietnam accounting for approximately 93% of 2010 global footwear production. The
five largest apparel factory groups accounted for approximately 20% of 2010 global apparel production, with the
largest factory group accounting for 7% of 2010 global apparel production. The five largest footwear factory
groups accounted for approximately 81% of 2010 global footwear production, with the largest factory group
accounting for 34% of 2010 global footwear production. In addition, a single vendor supplies substantially all of
the zippers used in our products. These companies, however, have multiple factory locations, many of which are
in different countries, thus reducing the risk that unfavorable conditions at a single factory or location will have a
material adverse effect on the Company.
NOTE 4—ACCOUNTS RECEIVABLE, NET
Accounts receivable, net, is as follows (in thousands):
December 31,
2010 2009
Trade accounts receivable ........................................... $307,279 $233,895
Allowance for doubtful accounts ..................................... (7,098) (7,347)
Accounts receivable, net ............................................ $300,181 $226,548
A reconciliation of the allowance for doubtful accounts is as follows (in thousands):
Year Ended December 31,
2010 2009 2008
Balance at beginning of period .................................. $7,347 $ 9,542 $7,369
Bad debt expense ............................................. 983 768 3,473
Write offs ................................................... (1,304) (3,133) (940)
Other ...................................................... 72 170 (360)
Balance at end of period ....................................... $7,098 $ 7,347 $9,542
NOTE 5—INVENTORIES, NET
Inventories, net, consisted of the following (in thousands):
December 31,
2010 2009
Raw materials .................................................... $ 1,096 $ 1,021
Work in process ................................................... 659 163
Finished goods .................................................... 312,543 220,977
$314,298 $222,161
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