Columbia Sportswear 2009 Annual Report Download - page 63

Download and view the complete annual report

Please find page 63 of the 2009 Columbia Sportswear annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 85

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85

COLUMBIA SPORTSWEAR COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Significant components of the Company’s deferred taxes are as follows (in thousands):
December 31,
2009 2008
Deferred tax assets:
Non-deductible accruals and allowances ............................. $18,979 $14,886
Capitalized inventory costs ........................................ 15,326 14,703
Stock compensation .............................................. 5,399 4,857
Net operating loss carryforward .................................... 4,734 2,130
Depreciation and amortization ..................................... 582 972
Other ......................................................... 1,633 1,747
46,653 39,295
Valuation allowance ............................................. (5,163) (2,512)
Net deferred tax assets ............................................ 41,490 36,783
Deferred tax liabilities:
Deductible accruals and allowance .................................. (1,129) (1,396)
Depreciation and amortization ..................................... (4,624) —
Foreign currency loss ............................................ (1,475) (2,022)
Other ......................................................... (1,368) (744)
(8,596) (4,162)
Total ............................................................. $32,894 $32,621
The Company had net operating loss carryforwards at December 31, 2009 and December 31, 2008 in certain
international tax jurisdictions of $50,338,000 and $27,191,000, respectively which will begin to expire in 2014.
The net operating losses result in a deferred tax asset at December 31, 2009 of $4,734,000, which was subject to
a $4,734,000 valuation allowance, and a deferred tax asset at December 31, 2008 of $2,130,000, which was
subject to a $2,130,000 valuation allowance. To the extent that the Company reverses a portion of the valuation
allowance, the adjustment would be recorded as a reduction to income tax expense.
Non-current deferred tax assets of $5,435,000 and $723,000 are included as a component of other
non-current assets in the consolidated balance sheet at December 31, 2009 and 2008, respectively.
NOTE 10—PROFIT SHARING PLANS
401(k) Profit-Sharing Plan
The Company has a 401(k) profit-sharing plan, which covers substantially all U.S. employees. Participation
begins the first of the quarter following completion of thirty days of service. The Company may elect to make
discretionary matching and/or non-matching contributions. All Company contributions to the plan as determined
by the Board of Directors totaled $2,610,000, $3,118,000 and $5,083,000 for the years ended December 31,
2009, 2008 and 2007, respectively.
Deferred Compensation Plan
The Company sponsors a nonqualified retirement savings plan for certain senior management employees
whose contributions to the tax qualified 401(k) plan would be limited by provisions of the Internal Revenue
Code. This plan allows participants to defer receipt of a portion of their salary and incentive compensation and to
56