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RUSSELL CORPORATION is a leading branded athletic, outdoor and Russell Corporation activewear company with over a century of success in marketing athletic uni- forms, apparel and equipment for a wide variety of sports, outdoor and fitness Annual Report activities. Founded in 1902, the company is headquartered in Atlanta, GA and its shares trade on the New York Stock Exchange under the symbol RML. FINANCIAL HIGHLIGHTS (Dollars in thousands except per share data) 2003 2002 Net sales $ 1,186,263 $1,164,328 Net income – GAAP basis $ 43,039 $ 34,306 Plus (minus) reconciling items (after tax): Special charges (1) 4,913 – Russell Corporation 2003 Annual Report Non-recurring favorable tax effects (1) (2,635) – Kmart receivable reserve (2) — 3,140 Gain on sales of non-core assets (2) — (1,603) Debt retirement charge (2) — 12,621 Net income – as adjusted (3) $ 45,317 $ 48,464 Diluted EPS – GAAP basis $ 1.32 $ 1.06 Diluted EPS – as adjusted (3) $ 1.38 $ 1.50 Total assets $ 1,023,307 $ 963,115 Total debt $ 281,443 $ 277,253 Stockholders’ equity $ 514,864 $ 467,253 Stockholders’ equity per common share $ 15.83 $ 14.52 Number of employees 13,644 13,915 Number of shareholders 9,000 9,000 (1) Fiscal 2003 includes special charges, of $0.15 per share, associated with the Operational Improvement Program announced in October 2003 and for further write-downs on assets held for sale and adjustments to restructuring reserves that were established as part of the Multi-Year Restructuring and Reorganization Program announced in July 1998. In addition, fiscal 2003 includes $0.08 per share of non-recurring favorable tax adjustments. These special charges and tax adjustments are more fully described in Management's Discussion and Analysis of Financial Condition and Results of Operations. Russell Corporation (2) Fiscal 2002 includes a $0.10 per share charge to increase our bad debt reserve for potential losses on our pre-petition receivables from Kmart along with a $0.05 per share gain on the sale of non-core assets. See 3300 Cumberland Boulevard, Suite 800 Management’s Discussion and Analysis of Financial Condition and Results of Operations for further details. Fiscal 2002 also includes a $0.39 per share charge associated with the early retirement of long-term indebted- Atlanta, Georgia 30339 ness as described in Note 2 to the consolidated financial statements. www.russellcorp.com (3) Excludes items in Note (1) and (2) that we believe are non-recurring in nature. CONTENTS 1 Letter To Shareholders 8 Directors and Officers 9 Financial Review IBC Corporate Information A RE Y OU R USSELL M ATERIAL? 1 RUSSELL CORPORATION is a leading branded athletic, outdoor and Russell Corporation activewear company with over a century of success in marketing athletic uni- forms, apparel and equipment for a wide variety of sports, outdoor and fitness Annual Report activities. Founded in 1902, the company is headquartered in Atlanta, GA and its shares trade on the New York Stock Exchange under the symbol RML. FINANCIAL HIGHLIGHTS (Dollars in thousands except per share data) 2003 2002 Net sales $ 1,186,263 $1,164,328 Net income – GAAP basis $ 43,039 $ 34,306 Plus (minus) reconciling items (after tax): Special charges (1) 4,913 – Russell Corporation 2003 Annual Report Non-recurring favorable tax effects (1) (2,635) – Kmart receivable reserve (2) — 3,140 Gain on sales of non-core assets (2) — (1,603) Debt retirement charge (2) — 12,621 Net income – as adjusted (3) $ 45,317 $ 48,464 Diluted EPS – GAAP basis $ 1.32 $ 1.06 Diluted EPS – as adjusted (3) $ 1.38 $ 1.50 Total assets $ 1,023,307 $ 963,115 Total debt $ 281,443 $ 277,253 Stockholders’ equity $ 514,864 $ 467,253 Stockholders’ equity per common share $ 15.83 $ 14.52 Number of employees 13,644 13,915 Number of shareholders 9,000 9,000 (1) Fiscal 2003 includes special charges, of $0.15 per share, associated with the Operational Improvement Program announced in October 2003 and for further write-downs on assets held for sale and adjustments to restructuring reserves that were established as part of the Multi-Year Restructuring and Reorganization Program announced in July 1998. In addition, fiscal 2003 includes $0.08 per share of non-recurring favorable tax adjustments. These special charges and tax adjustments are more fully described in Management's Discussion and Analysis of Financial Condition and Results of Operations. Russell Corporation (2) Fiscal 2002 includes a $0.10 per share charge to increase our bad debt reserve for potential losses on our pre-petition receivables from Kmart along with a $0.05 per share gain on the sale of non-core assets. See 3300 Cumberland Boulevard, Suite 800 Management’s Discussion and Analysis of Financial Condition and Results of Operations for further details. Fiscal 2002 also includes a $0.39 per share charge associated with the early retirement of long-term indebted- Atlanta, Georgia 30339 ness as described in Note 2 to the consolidated financial statements. www.russellcorp.com (3) Excludes items in Note (1) and (2) that we believe are non-recurring in nature. CONTENTS 1 Letter To Shareholders 8 Directors and Officers 9 Financial Review IBC Corporate Information A RE Y OU R USSELL M ATERIAL? 1 UR UR O MARKET POSITIONS O BUSINESS Russell Corporation and Subsidiaries Athletic Overview CORPORATE INFORMATION A leading supplier of team uniforms to the high school, college and professional • A portfolio of authentic athletic and outdoor brands uniform market and of sports apparel in department stores, sports specialty stores • Emphasis on innovative, high-performance products and college bookstores. • Significant advertising, marketing and other brand- 2003 Sales by Distribution Channel PRINCIPAL OFFICES DIVERSITY building efforts 3330 Cumberland Blvd. The largest supplier of men’s and boys’ sweatshirts and sweatpants, as well as Diversity is a significant contributor to the Company’s Suite 800 a major supplier of athletic socks to mass merchants; the number one brand of • Sourced products throughout the world success. Our goal is to maintain a fair and equitable Atlanta, GA 30339 sweatshirts, 50/50 t-shirts, denims, and sport shirts in the Artwear channel. • Invest in acquisitions to broaden our product offering 8% culture in which every member of the Global Russell (678) 742-8000 • Major supplier to athletic teams from the little Team reinforces our values and has the opportunity to leagues to the major leagues 32% 755 Lee Street contribute to our business goals. Our Strategic Diversity The official game ball of the NBA and WNBA and the worldwide leader in basketball • Primary retail distribution through specialty 31% P.O. Box 272 Management Plan focuses on the following four areas: sales. Spalding is also the official football of the Arena Football League, official Alexander City, AL 35011 • Workforce – To attract and retain superior talent. volleyball of the NCAA and the official soccer ball of the Major Indoor Soccer League. sporting goods stores, major department stores and college bookstores 29% (256) 500-4000 • Workplace – To foster an empowering culture that respects both differences and similarities. OTHER INFORMATION • Marketplace – To leverage our diversity to capitalize A leading supplier of protective equipment, sports medicine and performance Activewear Overview The Company’s press releases, annual report and on unique revenue opportunities. apparel to the team and retail sporting goods market. • Best value, basic apparel products other information can be accessed via the Internet at • Community – To support the communities where • Rapid adaptations of sports apparel to the channel RussellCorp.com we live and operate. Athletic • Selective advertising and marketing Mass Retail • Invest in plants and equipment to remain a TRANSFER AGENT AND REGISTRAR A collection of premium sportshirts and outerwear for the low-cost producer Artwear/Careerwear SunTrust Bank, Atlanta Artwear/Careerwear market. • Capital expenditures approximately equal International P.O. Box 4625 to depreciation Atlanta, GA 30302 (800) 568-3476 • Primary retail distribution through mass merchants MARKET SHARE INFORMATION • A leading supplier to the Artwear/Careerwear market Market share information for our Russell Artwear/ DIVIDEND DISBURSING AGENT The official ball of Australian (“Aussie”) Rules Football. Careerwear business was according to the S.T.A.R.S. SunTrust Bank, Atlanta reports from ACNielsen Market Decisions. The Sporting Goods Market P.O. Box 4625 Atlanta, GA 30302 DIVIDEND AND MARKET INFORMATION (800) 568-3476 t.com Russell Corporation stock trades on the New York Stock A pioneer in designing running apparel made for women, by women. UR ARKET 2003 Manufacturers’ Sales Exchange and various other regional exchanges under O M AUDITORS Moving Comfort offers a broad selection of women’s high performance the ticker symbol RML. The range of high and low prices of Ernst & Young LLP athletic wear, from sports bras to waterproof, breathable outerwear. the Common Stock and the dividends per share paid dur- • $50 billion wholesale market in the United States 1900 AmSouth/Harbert Plaza .corporaterepor ing each calendar quarter of the last two years are • Two-thirds of Americans participate in sports, Birmingham, AL 35203 presented below: fitness and outdoor activities 19% • Women’s participation up sharply – girls comprise FORM 10-K 2003 Dividend High Low Close 42% of high school athletes 45% Copies of Form 10-K as filed with the Securities and The leading designer of hunting apparel – combining advanced technology