Columbia Sportswear 2000 Annual Report Download - page 44

COLUMBIA SPORTSWEAR COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Note 8 Ì Shareholders' Equity
The Company is authorized to issue 50,000,000 shares of common stock. At December 31, 2000 and
1999, 25,709,447 and 25,350,307 shares of common stock were issued and outstanding.
On June 9, 1999, the shareholders of the Company approved the 1999 Employee Stock Purchase Plan
(""ESPP''). 500,000 shares of common stock are authorized for issuance under the ESPP, which allows
qualiÑed employees of the Company to purchase shares on a quarterly basis up to Ñfteen percent of their
respective compensation. The purchase price of the shares is equal to eighty Ñve percent of the lesser of the
closing price of the Company's common stock on the Ñrst or last trading day of the respective quarter. As of
December 31, 2000 and 1999, 48,083 and 21,582 shares of common stock had been issued under the ESPP.
Note 9 Ì Income Taxes
The Company applies an asset and liability approach that requires the recognition of deferred tax assets
and liabilities for the expected future tax consequences of events that have been recognized in the Company's
Ñnancial statements or tax returns. In estimating future tax consequences, the Company generally considers all
expected future events other than enactment of changes in the tax laws or rates. Deferred taxes are provided
for temporary diÅerences between assets and liabilities for Ñnancial reporting purposes and for income tax
purposes. Valuation allowances are recorded against net deferred tax assets when it is more likely than not the
asset will not be realized. Certain foreign tax beneÑts have been oÅset by valuation allowances related to net
operating losses.
Undistributed earnings of the Company's Canadian subsidiary amounted to approximately $7,300,000 on
December 31, 2000. Upon distribution of those earnings in the form of dividends or otherwise, a portion would
be subject to both U.S. income taxes and foreign withholding taxes. It is anticipated that the U.S. income
taxes and foreign withholding taxes would be substantially oÅset by the corresponding foreign tax credits
resulting from such a distribution.
The Company's income taxes payable for federal and state purposes have been reduced and the current
tax expense increased, by the tax beneÑts associated with dispositions of employee stock options. The
Company receives an income tax beneÑt calculated as the diÅerence between the fair market value of the
stock issued at the time of exercise and the option price, tax eÅected. These beneÑts were credited directly to
shareholders' equity.
The components of the provision for income taxes consists of the following (in thousands):
Year Ended December 31
2000 1999 1998
Current:
Federal ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $25,809 $17,764 $17,594
State and localÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 4,038 3,308 3,066
Non-U.S ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 6,773 4,189 3,103
36,620 25,261 23,763
Deferred:
Federal ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (2,172) (1,745) (4,262)
State and localÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (158) (599) (522)
Non-U.S ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (746) (682) Ì
(3,076) (3,026) (4,784)
Income tax expense ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $33,544 $22,235 $18,979
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