Columbia Sportswear 2001 Annual Report Download - page 43

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COLUMBIA SPORTSWEAR COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì (Continued)
Black-Scholes option pricing model as prescribed by SFAS No. 123 using the following weighted average
assumptions:
2001 2000 1999
Risk-free interest rate ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 3.24 Ó 5.38% 5.66 Ó 6.72% 5.04 Ó 6.20%
Expected dividend yieldÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0% 0% 0%
Expected livesÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 4 to 8 years 4 to 8 years 4 to 8 years
Expected volatility ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 67.45% 67.15% 66.80%
Using the Black-Scholes methodology, the total value of stock options granted during 2001, 2000 and
1999 was $14,994,000, $10,163,000 and $2,417,000, respectively, which would be amortized on a pro forma
basis over the vesting period of the options. The weighted average fair value of options granted during 2001,
2000 and 1999 was $20.46, $9.88 and $5.34 per share, respectively.
If the Company had accounted for the Plan in accordance with SFAS No. 123, the Company's net
income and earnings per share would approximate the pro forma disclosures below (in thousands, except per
share amounts):
2001 2000 1999
As reported Pro forma As reported Pro forma As reported Pro forma
Net income ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $88,824 $84,972 $58,611 $56,435 $33,008 $31,878
Earnings per share Ì basic ÏÏÏÏÏÏÏÏÏÏÏ $ 2.27 $ 2.18 $ 1.52 $ 1.46 $ 0.87 $ 0.84
Earnings per share Ì diluted ÏÏÏÏÏÏÏÏÏ $ 2.23 $ 2.13 $ 1.48 $ 1.42 $ 0.86 $ 0.83
The eÅects of applying SFAS No. 123 in this pro forma disclosure are not indicative of future amounts.
The following table summarizes information about stock options outstanding at December 31, 2001:
Options Outstanding Options Exercisable
Weighted Average
Remaining
Range of Number of Contractual Weighted Average Number of Weighted Average
Exercise Prices Shares Life (yrs) Exercise Price Shares Exercise Price
$ 6.45 Ó 9.67 480,459 6.26 $ 7.43 280,623 $ 7.10
$10.13 Ó 13.08 665,596 7.24 12.39 241,771 12.43
$15.71 Ó 18.13 402,163 8.41 17.58 87,448 17.41
$22.71 Ó 47.91 710,985 9.22 31.79 9,013 36.49
2,259,203 7.86 $18.37 618,855 $11.07
Note 14 Ì Segment Information
The Company operates predominantly in one industry segment: the design, production, marketing and
selling of active outdoor apparel, including outerwear, sportswear, rugged footwear and related accessories.
The geographic distribution of the Company's net sales, income before income tax, identiÑable assets,
interest expense, and depreciation and amortization expense are summarized in the following table (in
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