Columbia Sportswear 2010 Annual Report Download - page 61

COLUMBIA SPORTSWEAR COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
A reconciliation of goodwill is as follows (in thousands):
December 31,
2010 2009
Balance at beginning of period ......................................... $12,659 $12,659
Acquisitions ........................................................ 1,811 —
Impairment charges .................................................. — —
Balance at end of period .............................................. $14,470 $12,659
NOTE 8—SHORT-TERM BORROWINGS AND CREDIT LINES
The Company entered into a domestic credit agreement for an unsecured, committed $125,000,000
revolving line of credit effective June 15, 2010. The maturity date of this agreement is July 1, 2012. Interest,
payable monthly, is based on the Company’s applicable funded debt ratio, ranging from LIBOR plus 100 to 175
basis points. This line of credit requires the Company to comply with certain financial covenants covering net
income, tangible net worth and borrowing basis. At December 31, 2010, the Company was in compliance with all
associated covenants. If the Company is in default, it is prohibited from paying dividends or repurchasing
common stock. At December 31, 2010, no balance was outstanding under this line of credit. At December 31,
2009, the Company had domestic unsecured lines of credit with aggregate seasonal limits ranging from
$50,000,000 to $125,000,000, of which $25,000,000 to $100,000,000 was committed. These lines of credit were
terminated June 15, 2010 upon entering into the $125,000,000 agreement referred to above.
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$30,060,000) at
December 31, 2010. The revolving line accrues interest at the bank’s Canadian prime rate. There was no balance
outstanding under this line at December 31, 2010 and 2009.
The Company’s European subsidiary has available two separate unsecured and uncommitted lines of credit
guaranteed by the parent company providing for borrowing up to a maximum of 30,000,000 and 5,000,000 euros,
respectively (combined US$46,842,000) at December 31, 2010, of which US$3,346,000 of the 5,000,000 euro
line is designated as a European customs guarantee. These lines accrue interest based on the European Central
Bank (“ECB”) refinancing rate plus 50 basis points and Euro Overnight Index Average (“EONIA”) plus 75 basis
points, respectively. There was no balance outstanding under either line at December 31, 2010 or 2009.
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, 2010. The revolving
line accrues interest at LIBOR plus 110 basis points. There was no balance outstanding under this line at
December 31, 2010 and 2009.
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 $25,000,000 subject to annual renewal. At December 31, 2010, the Company had outstanding letters
of credit of $439,000 for purchase orders for inventory under this arrangement.
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