We intend to vigorously defend this matter and currently believe we have meritorious defenses in this matter. Exact Name of Registrant as Specified in Its Charter Delaware State or other jurisdiction of incorporation or organization 33-0272893 I. Several large, well-known companies have developed step-in systems that compete with the Autolock binding system. As a result of these and other factors, period-to-period comparisons of backlog may not necessarily be meaningful. The successful assertion of one or more large claims against us that exceed available insurance coverage, or changes in our insurance policies, including premium increases or the imposition of large deductible or co-insurance requirements, could have a material adverse effect on our financial condition and business reputation. Until 1994, all of our retail stores were located in California. Income and expense items are translated at a weighted average rate of exchange during the period of existence.
We consider such things as ability to pay, bankruptcy, credit ratings and payment history. Inventories are valued at the lower of cost or market net realizable value. At the end of the conversation, Steve would then ask me what I could ac… As I pulled into the environs of Asheville, I saw a homeless person standing on a corner, holding his proverbial cardboard sign. As a percentage of net sales, gross margin percentage increased to 45. In estimating cash flows, we generally used the financial assumptions in our current budget and our strategic plan and modify them on a store-by-store basis if other factors should be considered.
In particular, recent weaknesses in Latin American economies, particularly Argentina, have negatively effected 33 our Latin American business. Under our sales agency agreements, agents are paid a commission on sales and are responsible for all sales efforts in a particular territory. The lease for our headquarters expires in 2007 with an option to extend for 10 years. Develop your future product models based on what made your originals unique. In addition, in the casual footwear market, we compete with a number of companies, such as Skechers, Converse, Airwalk and Stride Rite Keds , some of which may have significantly greater financial and other resources than we do. Approximately 25% to 30% of our domestic sales are shipped directly from manufacturers to our retail customers.
We also currently operate a joint venture to sell our products in Mexico, Argentina, Brazil and Uruguay. Today, Vans is considered the largest action sports clothing company in the world. In addition, negative publicity about our sponsored athletes could harm our reputation and brand and adversely impact our business. The loss we incurred in the fourth quarter of fiscal 2002 caused us to be out of compliance with one of the financial covenants contained in the credit agreement see note 15. In addition, if our relationship with any of our manufacturers were to be interrupted or terminated, alternative manufacturing sources will have to be located. In addition, we use a variety of specialized fabrics in our footwear and clothing. Good Steps in the right direction.
As a result, no contingent consideration was due or payable. Blechman, dated as of August 20, 2001. We also engage in other activities such as discipleship, leadership development, church planting, and short term mission trips. Our board of directors has the authority to issue up to 5,000,000 shares of preferred stock of which 1,500,000 shares have been designated Series A Junior Preferred Stock and to fix the rights, preferences, privileges and restrictions of such shares without any further vote or action by our stockholders. Our success is largely dependent on the continued strength of our brand. Caterpillar people will increase shareholder value by aggressively pursuing growth and profit opportunities that leverage our engineering, manufacturing, distribution, information management and financial services expertise. This seasonal fluctuation in consumer demand could have a material adverse effect on our business, financial condition and results of operations.
If you have a body, you are an athlete …. Earnings from Operations Earnings from operations increased 23. The carrying value of our fixed and variable long-term borrowings approximates fair value because the fixed and variable rates approximate the market rates for such borrowings. However, a decline in fair value that is other than temporary must be accounted for as a realized loss and included in earnings. The Rights are not exercisable until the Distribution Date.
Retailer- They sell they many products they vans company manufactures such as shirts, hoodies, shoes, socks, and hats Consumer- We are the people who but them and wear them and essentially also promote it. The estimated amortization expense for these trademarks and patents, as well as those identifiable intangibles acquired as a result of the C. If actual market conditions are less favorable than those projected by us, additional provisions for doubtful accounts may be required. The majority of our efforts are directed towards people groups who currently have very limited access to the Gospel. We have also expanded our childrens line to include young girls shoes which are based upon the styles of our womens line, including the Mannaz, Westend and Ashland. During fiscal 2002, no significant changes were made to the estimates or other judgements that support our impairment analysis. Caterpillar is dedicated to improving the quality of life while sustaining the quality of our earth.
We may be more susceptible to these issues than our competitors whose operations are not as concentrated in California. Our actual results may vary significantly and could be impacted by a number of important factors, including but not limited to: i the ongoing consolidation of the retail segment of the footwear industry; ii the continuance of downward trends in the U. The apparel industry is highly competitive, more fashion-oriented and more fragmented than the athletic footwear market. Property, plant and equipment are stated at cost, less depreciation and amortization. Our boots are endorsed by several world-class snowboarders, including Danny Kass winner of a Silver Medal at the 2002 Winter Olympics , Tara Dakides, Daniel Franck winner of a Silver Medal at the 1998 Winter Olympics , Temple Cummings, Kurt Wastell and Axel Pauporte.
Hedging contracts mature within twelve months from their inception. We currently source our foreign-produced products through our subsidiary, Vans Far East Limited. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. If retail sell-throughs of our footwear products decline, our financial results would be adversely affected. Despite our efforts to safeguard and maintain such rights, we cannot assure that we will be successful in this regard, and we cannot assure that third parties will not sue us for intellectual property infringement in the future.
Management Information Systems Our management information systems are designed to provide, among other things, comprehensive order processing, production, accounting and management information for the marketing, manufacturing, importing and distribution functions of our business. Since we have only been operating our skateparks for a relatively short period of time in only nine markets, we have limited operating results and cannot be certain that the parks will be a successful component of our business, particularly in new markets where skatepark businesses have not been established. We received equity securities in Quokka Sports and Launch Media in connection with the sale of businesses in which we held a minority interest. Pricing for vans: shoes pricing varies. We evaluate performance based on channel revenues and consolidated operating income. This trend continued in the fourth quarter of fiscal 2002 when same-store sales were down 7. Thanks for your help, I wanted to pass on good news! This could lead to problems such as excess inventories and 14 higher than normal markdowns, lower gross margins due to the necessity of providing discounts to retailers, impairment of our brand name and brand image, as well as the inability to sell such products through our retail and outlet stores.