Columbia Sportswear 2012 Annual Report Download - page 62

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COLUMBIA SPORTSWEAR COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
58
Year Ended December 31,
2012 2011 2010
Rent expense included in SG&A . . . . . . . . . . . . . . . . . . . . . . . $ 51,853 $ 46,869 $ 39,898
Rent expense included in cost of sales . . . . . . . . . . . . . . . . . . . 1,528 1,429 1,351
$ 53,381 $ 48,298 $ 41,249
Approximate future minimum payments, including rent escalation clauses and stores that are not yet open, on all lease
obligations at December 31, 2012, are as follows (in thousands). Operating lease obligations listed below do not include
percentage rent, real estate taxes, insurance, CAM, and other costs for which the Company is obligated. These operating
lease commitments are not reflected on the Consolidated Balance Sheets.
2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 42,771
2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37,477
2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33,842
2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32,029
2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31,203
Thereafter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92,739
$ 270,061
Inventory Purchase Obligations
Inventory purchase obligations consist of open production purchase orders for sourced apparel, footwear, accessories
and equipment, and raw material commitments not included in open production purchase orders. At December 31, 2012
inventory purchase obligations were $255,299,000. To support certain inventory purchase obligations, the Company
maintains unsecured and uncommitted lines of credit available for issuing import letters of credit. At December 31, 2012
the Company had no balance outstanding under these letters of credit.
Litigation
The Company is a party to various legal claims, actions and complaints from time to time. Although the ultimate
resolution of legal proceedings cannot be predicted with certainty, management believes that disposition of these matters
will not have a material adverse effect on the Company’s consolidated financial statements.
Indemnities and Guarantees
During its normal course of business, the Company has made certain indemnities, commitments and guarantees under
which it may be required to make payments in relation to certain transactions. These include (i) intellectual property
indemnities to the Company’s customers and licensees in connection with the use, sale and/or license of Company products,
(ii) indemnities to various lessors in connection with facility leases for certain claims arising from such facility or lease,
(iii) indemnities to customers, vendors and service providers pertaining to claims based on the negligence or willful
misconduct of the Company, (iv) executive severance arrangements and (v) indemnities involving the accuracy of
representations and warranties in certain contracts. The duration of these indemnities, commitments and guarantees varies,
and in certain cases, may be indefinite. The majority of these indemnities, commitments and guarantees do not provide for
any limitation of the maximum potential for future payments the Company could be obligated to make. The Company has
not recorded any liability for these indemnities, commitments and guarantees in the accompanying Consolidated Balance
Sheets.
NOTE 14—SHAREHOLDERS’ EQUITY
Since the inception of the Company’s stock repurchase plan in 2004 through December 31, 2012, the Company’s
Board of Directors has authorized the repurchase of $500,000,000 of the Company’s common stock. As of December 31,
2012, the Company had repurchased 9,593,278 shares under this program at an aggregate purchase price of approximately