Columbia Sportswear 2009 Annual Report Download - page 68

COLUMBIA SPORTSWEAR COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Restricted Stock Units
Service-based restricted stock units are granted at no cost to key employees and shares granted prior to 2009
generally vest over three years from the date of grant. Service-based restricted stock units granted in 2009
generally vest over a period of four years. Performance-based restricted stock units are granted at no cost to
certain members of the Company’s senior executive team, excluding the Chairman and the President and Chief
Executive Officer, and generally vest over a performance period of between two and one-half and three years
with an additional required service period of one year. Restricted stock units vest in accordance with the terms
and conditions established by the Compensation Committee of the Board of Directors, and are based on
continued service and, in some instances, on individual performance and/or Company performance. For the
majority of restricted stock units granted, the number of shares issued on the date the restricted stock units vest is
net of the minimum statutory withholding requirements that the Company pays in cash to the appropriate taxing
authorities on behalf of its employees. For the years ended December 31, 2009, 2008 and 2007, the Company
withheld 19,819, 5,951 and 7,176 shares, respectively, to satisfy $624,000, $243,000 and $442,000 of employees’
tax obligations, respectively.
The fair value of service-based and performance-based restricted stock units is discounted by the present
value of the estimated future stream of dividends over the vesting period using the Black-Scholes model. The
relevant inputs and assumptions used in the Black-Scholes model to compute the discount are the vesting period,
dividend yield and closing price of the Company’s common stock on the date of grant.
The following table presents the weighted average assumptions for the years ended December 31:
2009 2008 2007
Vesting period ........................................ 3.82 years 3.06 years 3.11 years
Expected dividend yield ................................. 2.19% 1.56% 1.01%
Estimated average fair value per restricted stock unit granted . . . $ 27.14 $ 39.27 $ 60.16
The following table summarizes the restricted stock unit activity under the Plan:
Number of
Shares
Weighted Average
Grant Date Fair Value
Per Share
Restricted stock units outstanding at January 1, 2007 ............. 99,688 $49.06
Granted ............................................. 98,422 60.16
Vested .............................................. (21,622) 49.79
Forfeited ............................................ (16,618) 53.72
Restricted stock units outstanding at December 31, 2007 .......... 159,870 55.31
Granted ............................................. 168,347 39.27
Vested .............................................. (20,625) 51.85
Forfeited ............................................ (47,083) 49.25
Restricted stock units outstanding at December 31, 2008 .......... 260,509 46.32
Granted ............................................. 136,327 27.14
Vested .............................................. (65,935) 53.41
Forfeited ............................................ (44,381) 41.22
Restricted stock units outstanding at December 31, 2009 .......... 286,520 $36.35
Restricted stock unit compensation expense for the years ended December 31, 2009, 2008 and 2007 was
$3,492,000, $2,973,000 and $2,843,000, respectively. At December 31, 2009, 2008 and 2007, unrecognized costs
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