Note J - Commitments And Contingencies

12 Months Ended

Dec. 31, 2012

Commitments and Contingencies Disclosure [Text Block]

NOTE J - COMMITMENTS AND CONTINGENCIES

The Company leases its principal warehouse facility through January 2015.  In addition, certain property and equipment is leased primarily on a month-to-month basis.  Rent expense for operating leases for the years ended December 31 was as follows (in thousands).

	2012		2011		2010
Rent expense	$	7,967	$	7,661	$	6,550

The Company has entered into endorsement agreements with athletes that are sponsored by the Company through April 2014.  The Company has entered into licensing agreements which require the Company to pay minimum royalties through June 2014.

Future minimum rental payments under leases, future minimum endorsement fees under endorsement agreements, future minimum royalties under licensing agreements and product purchase obligations at December 31, 2012 were as follows (in thousands):

	Year ending December 31,
	2013		2014		2015		2016		2017		Thereafter		Total
Rental payments	$	6,803	$	5,825	$	3,047	$	1,739	$	1,472	$	2,680	$	21,566
Endorsement fees		2,948		168		0		0		0		0		3,116
Royalty fees		560		30		0		0		0		0		590
Product purchase obligations (1)		30,891		0		0		0		0		0		30,891
Total	$	41,202	$	6,023	$	3,047	$	1,739	$	1,472	$	2,680	$	56,163

(1)   The Company generally orders product four to five months in advance of sales based primarily on advance futures orders received from customers.  Product purchase obligations represent open purchase orders to purchase products in the ordinary course of business that are enforceable and legally binding.

The Company has outstanding letters of credit totaling approximately $378,000 at December 31, 2012.  These letters of credit collateralize the Company’s obligations to third parties for the purchase of inventory.  The letters of credit outstanding at December 31, 2012 have original terms from two to fifteen months.  The fair value of these letters of credit approximates the fees currently charged for similar agreements and is not significant at December 31, 2012 and 2011.

The Company is, from time to time, a party to litigation which arises in the normal course of its business operations.  The Company does not believe that it is presently a party to any such litigation which will have a material adverse effect on its business or operations.