Columbia Sportswear 2014 Annual Report Download - page 61

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COLUMBIA SPORTSWEAR COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
57
accounting for substantially all of 2014 global footwear production. The five largest apparel factory groups accounted for
approximately 30% of 2014 global apparel production, with the largest factory group accounting for 11% of 2014 global
apparel production. The five largest footwear factory groups accounted for approximately 85% of 2014 global footwear
production, with the largest factory group accounting for 41% of 2014 global footwear production. 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 5—NON-CONTROLLING INTEREST
The Company owns a 60% controlling interest in a joint venture formed with Swire Resources, Limited ("Swire") to
support the development of the Company's business in China. The joint venture was in a formation and start-up phase
during 2013 and began operations on January 1, 2014. In 2013, Swire made an initial capital contribution of $8,000,000
in cash, and the Company made an initial capital contribution of $12,000,000 in cash. The accounts and operations of the
joint venture are included in the Consolidated Financial Statements as of December 31, 2014 and 2013. Swire's share of
the net income (loss) of the joint venture is included in net income (loss) attributable to non-controlling interest in the
Consolidated Statements of Operations for the years ended December 31, 2014 and 2013. The 40% non-controlling equity
interest in the joint venture is presented separately in the Consolidated Balance Sheets and Consolidated Statements of
Equity for the years ended December 31, 2014 and 2013.
NOTE 6—ACCOUNTS RECEIVABLE, NET
Accounts receivable, net, is as follows (in thousands):
December 31,
2014 2013
Trade accounts receivable $ 353,333 $ 315,160
Allowance for doubtful accounts (8,943) (8,282)
Accounts receivable, net $ 344,390 $ 306,878
NOTE 7—PROPERTY, PLANT, AND EQUIPMENT, NET
Property, plant, and equipment consisted of the following (in thousands):
December 31,
2014 2013
Land and improvements $ 21,049 $ 21,321
Buildings and improvements 160,165 165,582
Machinery, software and equipment 281,132 212,097
Furniture and fixtures 72,292 65,540
Leasehold improvements 93,782 78,631
Construction in progress 8,755 62,582
637,175 605,753
Less accumulated depreciation (345,612) (326,380)
$ 291,563 $ 279,373
NOTE 8—INTANGIBLE ASSETS, NET AND GOODWILL
Intangible assets that are determined to have finite lives include patents, purchased technology and customer
relationships and are amortized over their estimated useful lives, which range from approximately 3 to 10 years, and are
measured for impairment only when events or circumstances indicate the carrying value may be impaired. Goodwill and
intangible assets with indefinite useful lives, including trademarks and trade names, are not amortized but are periodically
evaluated for impairment.