North Face 2000 Annual Report Download - page 30

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lease and contract termination costs. Cash payments related to
these actions will be substantially completed during 2001. Charges
are summarized as follows:
Facilities Lease and
Exit Contract
In thousands Severance Costs Termination Total
1999 Activity:
Accrual for 1999 acquisitions $ 5,061 $1,622 $17,948 $ 24,631
Cash payments (1,362) (208) (2,218) (3,788)
Estimated remaining costs,
January 1, 2000 3,699 1,414 15,730 20,843
2000 Activity:
Accrual for 2000 acquisitions 7,971 967 3,558 12,496
Cash payments (6,411) (831) (6,588) (13,830)
Adjustments to acquisition costs (2,037) (711) (723) (3,471)
Estimated remaining costs,
December 30, 2000 $ 3,222 $ 839 $11,977 $ 16,038
The following unaudited pro forma results of operations assume
that acquisitions during the last two years had occurred at the
beginning of 1999:
In thousands, except per share amounts 2000 1999
Net sales $5,927,634 $6,043,873
Net income 229,556 316,644
Earnings per common share:
Basic $ 1.98 $ 2.62
Diluted 1.95 2.58
All acquisitions have been accounted for as purchases, and
accordingly, the purchase prices have been allocated to the net assets
acquired based on fair values at the dates of acquisition. The excess
of cost over fair value of the purchased businesses has been allocated
to intangible assets and is being amortized over periods from 19 to
40 years. Operating results of these businesses have been included in
the consolidated financial statements since the dates of acquisition.
Note C Inventories
In thousands 2000 1999
Finished products $ 710,158 $575,617
Work in process 194,194 171,275
Materials and supplies 220,086 217,148
$1,124,438 $964,040
The current cost of inventories stated on the last-in, first-out
method is not significantly different from their value determined
under the first-in, first-out method.
Note D Property, Plant and Equipment
In thousands 2000 1999
Land $ 57,961 $ 46,626
Buildings 504,816 478,372
Machinery and equipment 1,302,549 1,289,064
1,865,326 1,814,062
Less accumulated depreciation 1,089,311 1,009,640
$ 776,015 $ 804,422
Note E Short-term Borrowings
In thousands 2000 1999
Commercial paper $ 56,855 $319,033
Banks 90,150 89,899
$147,005 $408,932
The weighted average interest rate for short-term borrowings was
9.0% at the end of 2000 and 6.5% at the end of 1999. The
Company maintains an unsecured revolving credit agreement with
a group of banks for $750.0 million that supports commercial
paper borrowings and is otherwise available for general corporate
purposes. The agreement, which extends to July 2004, requires an
.08% facility fee per year and contains various financial covenants,
including a debt to net worth requirement. At December 30, 2000,
there were no borrowings under the agreement.
Note F Accrued Liabilities
In thousands 2000 1999
Income taxes $ 45,548 $ 59,242
Compensation 86,521 71,798
Restructuring costs (Note M) 37,393 –
Other 235,607 236,084
$405,069 $367,124
Note G Long-term Debt
In thousands 2000 1999
9.50% notes, due 2001 $100,000 $100,000
6.63% notes, due 2003 100,000 100,000
7.60% notes, due 2004 100,000 100,000
6.75% notes, due 2005 100,000 100,000
8.10% notes, due 2005 300,000 –
8.50% notes, due 2010 200,000 –
9.25% debentures, due 2022 100,000 100,000
Other 19,035 22,585
1,019,035 522,585
Less current portion 113,999 4,751
$905,036 $517,834
The scheduled payments of long-term debt are $1.8 million in
2002, $100.8 million in 2003, $100.3 million in 2004 and $400.3
million in 2005. The Company paid interest of $77.1 million in
2000, $73.4 million in 1999 and $59.5 million in 1998.