Columbia Sportswear 2010 Annual Report Download - page 26

Our Products Are Subject to Increasing Product Regulations and We Face Risks of Product Liability and
Warranty Claims
Our products are subject to increasingly stringent and complex domestic and foreign product labeling and
performance and safety standards, laws and other regulations. These requirements could result in greater expense
associated with compliance efforts, and failure to comply with these regulations could result in a delay,
non-delivery or mandated recall or destruction of inventory shipments during key seasons or in other financial
penalties. Significant or continuing noncompliance with these standards and laws could harm our reputation and,
as a result, could have a material adverse effect on our financial condition, results of operations or cash flows.
Our products are used in outdoor activities, sometimes in severe conditions. Product recalls or product
liability claims in the future, resulting from the alleged failure of our products, could have a material adverse
effect on our financial condition, results of operations or cash flows. Some of our products carry warranties for
defects in quality and workmanship. We maintain a warranty reserve for future warranty claims, but the actual
costs of servicing future warranty claims may exceed the reserve, which may also have a material adverse effect
on our financial condition, results of operations or cash flows.
Our Common Stock Price May Be Volatile
The price of our common stock has fluctuated substantially since our initial public offering. Our common
stock is traded on the NASDAQ Global Select Market. Factors such as general market conditions, fluctuations in
financial results, variances from financial market expectations, changes in earnings estimates by analysts, or
announcements by us or our competitors may cause the market price of our common stock to fluctuate, perhaps
substantially.
Insiders Control a Majority of Our Common Stock and May Sell Shares
Three related 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 and the Securities Exchange
Act of 1934. The sale or the prospect of the sale of a substantial number of these shares may have an adverse
effect on the market price of our common stock.
Item 1B. UNRESOLVED STAFF COMMENTS
None.
Item 2. PROPERTIES
Following is a summary of principal properties owned or leased by us.
Corporate Headquarters: Europe Headquarters (2):
Portland, Oregon (1 location)—owned Geneva, Switzerland (1 location)—leased
U.S. Distribution Facilities: Europe Administrative Operation:
Portland, Oregon (1 location)—owned Strasbourg, France (1 location)—owned
Robards, Kentucky (1 location)—owned Europe Distribution Facility:
Canadian Operation and Distribution Facilities (1): Cambrai, France (1 location)—owned
Strathroy, Ontario (2 locations)—1 owned, 1 leased
(1) Lease expires in June 2012.
(2) Lease expires in June 2015.
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