Columbia Sportswear 2002 Annual Report Download - page 50

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COLUMBIA SPORTSWEAR COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The following table summarizes the stock option activity under the Company’s option plan:
Outstanding Exercisable
Number of
Shares
Weighted
Average
Exercise
Price
Number of
Shares
Weighted
Average
Exercise
Price
Options outstanding at January 1, 2000 ....................... 1,982,264 $ 9.33 692,096 $ 8.95
Granted ................................................ 1,028,424 15.03
Cancelled .............................................. (136,806) 10.81
Exercised .............................................. (498,959) 8.50
Options outstanding at December 31, 2000 .................... 2,374,923 11.89 712,139 $10.37
Granted ................................................ 732,617 31.96
Cancelled .............................................. (178,146) 16.76
Exercised .............................................. (670,191) 10.73
Options outstanding at December 31, 2001 .................... 2,259,203 18.37 618,855 $11.07
Granted ................................................ 823,780 38.27
Cancelled .............................................. (21,110) 27.98
Exercised .............................................. (410,665) 13.87
Options outstanding at December 31, 2002 .................... 2,651,208 $25.17 906,787 $17.14
The Company continues to measure compensation cost for the Plan using the method of accounting
prescribed by APB 25. In electing to continue to follow APB 25 for expense recognition purposes, the Company
is required to provide the expanded disclosures required under SFAS No. 148 for stock-based compensation
granted, including disclosure of pro forma net income and earnings per share, as if the fair value based method of
accounting defined in the SFAS No. 123 “Accounting for Stock-Based Compensation”, had been adopted.
The Company has computed, for pro forma disclosure purposes, the value of all stock options granted
during 2002, 2001 and 2000 using the Black-Scholes option pricing model as prescribed by SFAS No. 123 using
the following weighted average assumptions:
2002 2001 2000
Risk-free interest rate ................... 2.33–5.33% 3.24–5.38% 5.66–6.72%
Expected dividend yield ................. 0% 0% 0%
Expected lives ......................... 4to8years 4 to 8 years 4 to 8 years
Expected volatility ...................... 62.68% 67.45% 67.15%
Using the Black-Scholes methodology, the total value of stock options granted during 2002, 2001 and 2000
was $19,251,000, $14,994,000 and $10,163,000, 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 2002, 2001 and
2000 was $23.37, $20.46 and $9.88 per share, respectively.
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