Columbia Sportswear 2002 Annual Report Download - page 44

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COLUMBIA SPORTSWEAR COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
guarantor’s obligation should be applied on a prospective basis to guarantees issued after December 31, 2002.
The Company does not believe that the provisions of FIN 45 will have a material effect on its financial position
or results of operations.
In January 2003, the FASB issued FASB Interpretation No. 46, “Consolidation of Variable Interest Entities”
(“FIN 46”). This interpretation explains how to identify variable interest entities and how an enterprise assesses
its interest in a variable interest entity to decide whether to consolidate that entity. This interpretation requires
existing unconsolidated variable interest entities to be consolidated by their primary beneficiaries if the entities
do not effectively disperse risks among parties involved. Variable interest entities that effectively disperse risks
will not be consolidated unless a single party holds an interest or combination of interest that effectively
recombines risks that were previously dispersed. This interpretation applies immediately to variable interest
entities created after January 31, 2003, and to variable interest entities in which an enterprise obtains an interest
after that date. It applies in the first fiscal year or interim period beginning after June 15, 2003, to variable
interest entities in which an enterprise holds a variable interest that it acquired before February 1, 2003. The
Company does not believe that the provisions of FIN 46 will have a material effect on its financial position or
results of operations.
NOTE 3—INVENTORIES, NET
Inventories consist of the following (in thousands):
December 31,
2002 2001
Raw materials ............................................................. $ 1,540 $ 4,209
Work in process ............................................................ 2,714 6,156
Finished goods ............................................................. 90,608 104,524
$94,862 $114,889
NOTE 4—PROPERTY, PLANT, AND EQUIPMENT, NET
Property, plant, and equipment consist of the following (in thousands):
December 31,
2002 2001
Land.................................................................... $ 6,100 $ 6,100
Buildings ................................................................ 51,795 51,581
Machineryandequipment................................................... 79,129 70,950
Furnitureandfixtures ...................................................... 8,050 7,705
Leasehold improvements .................................................... 10,002 9,203
Construction in progress .................................................... 39,919 10,498
194,995 156,037
Less accumulated depreciation ............................................... 70,480 55,365
$124,515 $100,672
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