Columbia Sportswear 2013 Annual Report Download - page 41

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Net cash used in investing activities was $116.1 million in 2013 compared to $85.0 million in 2012. For 2013, net
cash used in investing activities primarily consisted of $69.4 million for capital expenditures, including development of our
ongoing global ERP system, project and maintenance capital expenditures and investments in our direct-to-consumer
business, and $46.8 million for net purchases of short-term investments. For 2012, net cash used in investing activities
primarily consisted of $50.5 million for capital expenditures and $41.7 million for net purchases of short-term investments.
Net cash used in financing activities was $4.7 million in 2013 compared to $15.7 million in 2012. For 2013, net cash
used in financing activities primarily consisted of dividend payments of $31.3 million, partially offset by net proceeds of
$17.2 million from the issuance of common stock related to our stock compensation programs and an $8.0 million capital
contribution from our China joint venture partner, which was recorded in equity as a non-controlling interest. For 2012,
net cash used in financing activities primarily consisted of dividend payments of $29.8 million, partially offset by net
proceeds of $13.1 million from the issuance of common stock.
2012 compared to 2011
Net cash provided by operating activities was $148.7 million in 2012 compared to $63.8 million in 2011. The increase
in cash provided by operating activities was primarily due to decreases in accounts receivable and inventory for the year
ended December 31, 2012, compared to increases in the prior year; partially offset by a decrease in accounts payable and
accrued liabilities for the year ended December 31, 2012 compared to an increase in 2011.
Net cash used in investing activities was $85.0 million in 2012 compared to $12.5 million in 2011. For 2012, net
cash used in investing activities primarily consisted of $50.5 million for capital expenditures and $41.7 million for net
purchases of short-term investments. For 2011, net cash used in investing activities primarily consisted of $78.4 million
for capital expenditures, including the acquisition of a new distribution center and headquarters facility in Canada, partially
offset by $65.7 million for net sales of short-term investments.
Net cash used in financing activities was $15.7 million in 2012 compared to $39.2 million in 2011. For 2012, net
cash used in financing activities primarily consisted of dividend payments of $29.8 million, partially offset by net proceeds
of $13.1 million from the issuance of common stock. For 2011, net cash used in financing activities primarily consisted of
dividend payments of $29.1 million and the repurchase of common stock at an aggregate price of $20.0 million, partially
offset by net proceeds of $8.0 million from the issuance of common stock.
Short-term borrowings and credit lines
We have an unsecured, committed $125.0 million revolving line of credit available to fund our domestic working
capital requirements. At December 31, 2013, no balance was outstanding under this line of credit and we were in compliance
with all associated covenants. Internationally, our subsidiaries have operating lines of credit in place guaranteed by the
parent company with a combined limit of approximately $103.4 million at December 31, 2013, of which $3.2 million is
designated as a European customs guarantee. At December 31, 2013, there was no balance outstanding under these lines
of credit.
We expect to fund our future working 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 and footwear 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 in the third and fourth quarters and proportionally higher
sales in our direct-to-consumer operations in the fourth quarter, combined with an expense base that is spread more evenly
throughout the year. 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.
Contractual obligations