Columbia Sportswear 2011 Annual Report Download - page 61

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COLUMBIA SPORTSWEAR COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Company to comply with certain financial covenants covering net income, tangible net worth and borrowing
basis. If the Company is in default, it is prohibited from paying dividends or repurchasing common stock. At
December 31, 2011, the Company was in compliance with all associated covenants. At December 31, 2011 and
2010, no balance was outstanding under this line of credit.
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$29,374,000) at
December 31, 2011. The revolving line accrues interest at the bank’s Canadian prime rate. There was no balance
outstanding under this line at December 31, 2011 and 2010.
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,
respectively (combined US$45,366,000) at December 31, 2011, of which US$3,240,000 of the €5,000,000 line is
designated as a European customs guarantee. These lines accrue interest based on the European Central Bank
refinancing rate plus 50 basis points and Euro Overnight Index Average plus 75 basis points, respectively. There
was no balance outstanding under either line at December 31, 2011 or 2010.
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, 2011. The revolving
line accrues interest at LIBOR plus 110 basis points. There was no balance outstanding under this line at
December 31, 2011 and 2010.
On August, 31, 2011, the Company’s Korean subsidiary entered into an unsecured and uncommitted line of
credit agreement guaranteed by the parent company providing for borrowing to a maximum of US$10,000,000.
The revolving line accrues interest at the Korean three-month CD rate plus 220 basis points. There was no
balance outstanding under this line at December 31, 2011.
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 $15,000,000 subject to annual renewal. At December 31, 2011, the Company had outstanding letters
of credit of $2,029,000 for purchase orders for inventory under this arrangement.
NOTE 9—ACCRUED LIABILITIES
Accrued liabilities consisted of the following (in thousands):
December 31,
2011 2010
Accrued salaries, bonus, vacation and other benefits ...................... $ 55,958 $ 49,078
Accrued import duties .............................................. 11,258 13,443
Product warranties ................................................. 10,452 10,256
Other ........................................................... 26,828 30,033
$104,496 $102,810
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