Columbia Sportswear 2002 Annual Report Download - page 46

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COLUMBIA SPORTSWEAR COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
NOTE 7—LONG-TERM DEBT
Long-term debt consists of the following (in thousands):
December 31,
2002 2001
Senior promissory notes payable ............................................... $21,429 $25,000
Termloan ................................................................. 3,705 4,177
Mortgagenotepayable ....................................................... — 645
25,134 29,822
Less current portion .......................................................... (4,498) (4,775)
$ 20,636 $25,047
In connection with a distribution center expansion project, the Company entered into a note purchase
agreement. Pursuant to the note purchase agreement, the Company issued senior promissory notes in the
aggregate principal amount of $25 million, bearing an interest rate of 6.68% and maturing August 11, 2008.
Proceeds from the notes were used to finance the expansion of the Company’s distribution center in Portland,
Oregon. The Senior Promissory Notes require the Company to comply with certain ratios related to indebtedness
to earnings before interest, taxes, depreciation and amortization (“EBITDA”) and tangible net worth. As of
December 31, 2002, the Company was in compliance with these covenants.
In June 2001, the Company’s Japanese subsidiary borrowed 550,000,000 Japanese yen (US$3,705,000 at
December 31, 2002), bearing an interest rate of 1.73% at December 31, 2002 and 2001, for general working
capital requirements. Principal and interest are paid semi-annually from July 2001 through June 2006.
The Company assumed a mortgage note payable, at an interest rate of 8.76%, in connection with a domestic
distribution center expansion project. This note was repaid in October 2002.
Principal payments due on these notes as of December 31, 2002 were as follows (in thousands):
Year ended
December 31,
2003 ........................................................... $ 4,498
2004 ........................................................... 4,498
2005 ........................................................... 4,498
2006 ........................................................... 4,498
2007 ........................................................... 3,571
Thereafter ....................................................... 3,571
$25,134
NOTE 8—SHAREHOLDERS’ EQUITY
On May 16, 2002, the shareholders of the Company approved an increase in the number of authorized
shares of common stock from 50,000,000 shares to 125,000,000 shares. At December 31, 2002 and 2001,
39,737,065 and 39,282,921 shares of common stock were issued and outstanding, respectively.
39