2010 Annual Report - Dorel Industries

Balance SheetSelected Balance Sheet Data as at December 30:2010 2009 2008$ $ $Total assets 2,095,960 2,002,180 2,030,473Long-term Financial Liabilities, excluding current portion:Long-term debt 319,281 227,075 450,704Other long-term liabilities 35,999 25,139 6,010Other:Current portion of long-term debt and bank indebtedness 41,182 124,495 13,277Versus the December 30, 2009 year-end balance sheet, the majority of the total asset increase was due to higher inventory levels.There are several reasons for the increase. While the impact of order reductions in the U.S. was significant at approximately$30 million, several other components account for the total increase. Firstly, last year’s inventory levels were too low to adequatelyservice the Company’s customers, and as such, approximately 35% to 40% of the increase was intentional to align inventorieswith business needs. The bulk of the remaining increase was due to inventory for 2011 sales being brought in earlier than in theprior year. Finally, cost increases year-over-year added approximately 2% to 3% to total inventory value. These reasons explain theincrease in the number of days in inventory as presented below, along with certain other of the Company’s working capital ratios:As at December 30,2010 2009Debt to equity 0.31 0.32# of Days in receivables 56 59# of Days in inventory 106 91The lower number of days in receivables is due to the sales reduction near the end of the year in the U.S. in 2010. Other than theitems described above, there were no significant variations year-over-year in the Company’s balance sheet.Annual Report 2010 15