Columbia Sportswear 2009 Annual Report Download - page 69

COLUMBIA SPORTSWEAR COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
related to restricted stock units totaled approximately $4,216,000, $5,499,000 and $5,963,000, respectively,
before any related tax benefit. The unrecognized costs related to restricted stock units are being amortized over
the related vesting period using the straight-line attribution method. These unrecognized costs at December 31,
2009 are expected to be recognized over a weighted average period of 1.95 years. The total grant date fair value
of restricted stock units vested during the year ended December 31, 2009, 2008 and 2007 was $3,522,000,
$1,069,000 and $1,077,000, respectively.
1999 Employee Stock Purchase Plan
In 1999, the Company’s shareholders approved the 1999 Employee Stock Purchase Plan (“ESPP”). There
are 750,000 shares of common stock authorized for issuance under the ESPP, which allows qualified employees
of the Company to purchase shares on a quarterly basis up to fifteen percent of their respective compensation.
The purchase price of the shares is equal to eighty five percent of the lesser of the closing price of the Company’s
common stock on the first or last trading day of the respective quarter. Effective July 1, 2005, the Company
suspended offerings under the ESPP indefinitely. As of December 31, 2009, a total of 275,556 shares of common
stock had been issued under the ESPP.
NOTE 13—EARNINGS PER SHARE
Earnings per Share (“EPS”),is presented on both a basic and diluted basis. Basic EPS is based on the
weighted average number of common shares outstanding. Diluted EPS reflects the potential dilution that could
occur if outstanding securities or other contracts to issue common stock were exercised or converted into
common stock. For the calculation of diluted EPS, the basic weighted average number of shares is increased by
the dilutive effect of stock options and restricted stock units determined using the treasury stock method.
A reconciliation of the common shares used in the denominator for computing basic and diluted EPS is as
follows (in thousands, except per share amounts):
Year Ended December 31,
2009 2008 2007
Weighted average common shares outstanding, used in computing basic earnings
per share ........................................................ 33,846 34,610 36,106
Effect of dilutive stock options and restricted stock units .................... 135 101 328
Weighted-average common shares outstanding, used in computing diluted
earnings per share ................................................. 33,981 34,711 36,434
Earnings per share of common stock:
Basic ......................................................... $ 1.98 $ 2.75 $ 4.00
Diluted ....................................................... 1.97 2.74 3.96
Stock options and service-based restricted stock units representing 1,562,064, 1,410,849 and 354,342 shares
of common stock for the years ended December 31, 2009, 2008 and 2007, respectively, were outstanding but
were excluded in the computation of diluted EPS because their effect would be anti-dilutive as a result of
applying the treasury stock method. In addition, performance-based restricted stock units representing 44,043,
41,799 and 24,318 shares for the years ended December 31, 2009, 2008 and 2007, respectively, were outstanding
but were excluded from the computation of diluted EPS because these shares were subject to performance
conditions that had not been met.
Since the inception of the Company’s stock repurchase plan in 2004 through December 31, 2009, the
Company’s Board of Directors has authorized the repurchase of $500,000,000 of the Company’s common stock.
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