Columbia Sportswear 2001 Annual Report Download - page 41

COLUMBIA SPORTSWEAR COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì (Continued)
Note 10 Ì ProÑt Sharing Plan
The Company has a 401(k) proÑt-sharing plan, which covers substantially all employees with more than
ninety days of service. The Company may elect to make discretionary matching and/or non-matching
contributions. All contributions to the plan are determined by the Board of Directors and totaled $2,582,000,
$2,106,000, and $1,860,000 for the years ended December 31, 2001, 2000, and 1999, respectively.
Note 11 Ì Participation Share Agreement
EÅective December 1990, the Company adopted a Participation Share Agreement (the ""Participation
Plan'') with a key employee. The Participation Plan provided for the grant of participation shares equivalent to
10% of the Company, which were to be awarded at various dates through January 2000. Shares awarded were
subjected to vesting at a rate of 20% per year. The original Participation Plan granted the employee deferred
compensation in the appreciation of a deÑned per-share book value of the Company since January 1987 and
contained an anti-dilutive provision.
EÅective December 31, 1996, the original Participation Plan was terminated and a Deferred Compensa-
tion Conversion Agreement (the ""Agreement'') was entered into. Under the Agreement, the participation
shares, whether or not vested or awarded under the Participation Plan, were converted to 2,700,653 shares of
common stock. As of December 31, 2001, of the converted shares, 352,250 shares of common stock awarded
were subject to vesting through December 2004.
The total value of the share conversion was $15,693,000, of which $6,320,000 was unvested as of
December 31, 1996. The unvested portion was recorded as a reduction in shareholders' equity and will be
amortized to compensation expense through December 2004 as shares are earned. Compensation expense
related to the Participation Plan and the 1996 conversion totaled $682,000, $682,000, and $970,000 for the
years ended December 31, 2001, 2000, and 1999, respectively.
Note 12 Ì Commitments and Contingencies
The Company leases certain operating facilities from related parties of the Company. Total rent expense,
including month-to-month rentals, for these leases amounted to $381,000, $408,000 and $339,000 for the
years ended December 31, 2001, 2000 and 1999, respectively.
Rent expense was $2,568,000, $2,464,000 and $2,303,000 for non-related party leases during the years
ended December 31, 2001, 2000 and 1999, respectively.
The approximate future minimum payments on all lease obligations at December 31, 2001 are as follows
(amounts in thousands):
Non-related Related
Parties Parties Total
2002ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $2,737 $ 366 $ 3,103
2003ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1,570 366 1,936
2004ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1,340 366 1,706
2005ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1,023 366 1,389
2006ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 634 366 1,000
Thereafter ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1,109 1,828 2,937
$8,413 $3,658 $12,071
The Company is a party to various legal claims, actions and complaints. Although the ultimate resolution
of legal proceedings cannot be predicted with certainty, management believes that disposition of these matters
will not have a material adverse eÅect on the Company's consolidated Ñnancial statements.
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