Columbia Sportswear 2004 Annual Report Download - page 37

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significant price and volume fluctuations that could adversely affect the market price of our common stock
without regard to our operating performance. We also believe factors such as fluctuations in financial results,
variances from financial market expectations, changes in earnings estimates by analysts, or announcements by us
or competitors may cause the market price of the common stock to fluctuate, perhaps substantially.
Insiders Control a Majority of Our Common Stock and Could Sell Shares
Three shareholders—Timothy Boyle, Gertrude Boyle and Sarah Bany—beneficially own a majority of our
common stock. As a result, if acting together, they can effectively control matters requiring shareholder approval
without the cooperation of other shareholders. Shares held by these three insiders are available for resale, subject
to the requirements of, and the rules under, the Securities Act of 1933. The sale or prospect of the sale of a
substantial number of these shares could have an adverse effect on the market price of our common stock.
Item 7(a). QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
The information required by this item is included in Management’s Discussion and Analysis of Financial
Condition and Results of Operations and is incorporated herein by this reference.
Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
Our management is responsible for the information and representations contained in this report. The
financial statements have been prepared in conformity with accounting principles generally accepted in the
United States, which we consider appropriate in the circumstances and include some amounts based on our best
estimates and judgments. Other financial information in this report is consistent with these financial statements.
Our accounting systems include controls designed to reasonably assure that assets are safeguarded from
unauthorized use or disposition and which provide for the preparation of financial statements in conformity with
accounting principles generally accepted in the United States of America. These systems are supplemented by the
selection and training of qualified financial personnel and an organizational structure providing for appropriate
segregation of duties.
The Audit Committee is responsible for recommending to the Board of Directors the appointment of the
independent accountants and reviews with the independent accountants and management the scope and the
results of the annual examination, the effectiveness of the accounting control system and other matters relating to
our financial affairs as they deem appropriate.
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