Columbia Sportswear 2004 Annual Report Download - page 55

COLUMBIA SPORTSWEAR COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Non-current deferred tax assets of $339,000 are included as a component of other assets in the consolidated
balance sheet at December 31, 2004. Non-current deferred tax assets of $795,000 are netted with the non-current
deferred tax liabilities line item on the consolidated balance sheet and $1,486,000 of current deferred tax
liabilities are included as a component of accrued liabilities in the consolidated balance sheet at December 31,
2003.
NOTE 11—PROFIT SHARING PLAN
The Company has a 401(k) profit-sharing plan, which covers substantially all United States 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 $3,903,000,
$3,291,000 and $2,930,000 for the years ended December 31, 2004, 2003, and 2002, respectively.
NOTE 12—COMMITMENTS AND CONTINGENCIES
The Company leases certain operating facilities from a related party of the Company. Total rent expense,
including month-to-month rentals, for these leases amounted to $533,000, $449,000 and $370,000 for the years
ended December 31, 2004, 2003 and 2002, respectively.
Rent expense was $5,714,000, $4,740,000 and $3,365,000 for non-related party leases during the years
ended December 31, 2004, 2003 and 2002, respectively. Of these amounts $4,677,000, $3,910,000 and
$2,587,000 were included as part of selling, general and administrative expense for the years ended December
31, 2004, 2003 and 2002, respectively and $1,037,000, $830,000 and $778,000 were included as part of cost of
goods sold for the years ended December 31, 2004, 2003 and 2002, respectively.
The approximate future minimum payments on all lease obligations at December 31, 2004 are as follows
(amounts in thousands):
Non-related
Parties
Related
Party Total
2005 ............................................. $ 5,432 $ 485 $ 5,917
2006 ............................................. 4,040 485 4,525
2007 ............................................. 2,810 485 3,295
2008 ............................................. 2,182 485 2,667
2009 ............................................. 639 485 1,124
Thereafter ........................................ 6,661 971 7,632
$21,764 $3,396 $25,160
Rent escalation clauses, leasehold improvement funding, and other lease concessions present in the
Company’s leases are included in the computation of the minimum lease payments above and the minimum lease
payments are recognized on a straight-line basis over the minimum lease term.
The Company is a party to various legal claims, actions and complaints from time to time. 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 effect on the Company’s consolidated financial statements.
NOTE 13—STOCK-BASED COMPENSATION
The Company’s 1997 Stock Incentive Plan (the “Plan”) provides for issuance of up to 7,400,000 shares of
the Company’s Common Stock of which 2,063,242 shares were available for future stock option grants under the
Plan at December 31, 2004. Options granted prior to 2001 generally become exercisable ratably over a five-year
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