Columbia Sportswear 2010 Annual Report Download - page 60

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COLUMBIA SPORTSWEAR COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
NOTE 6—PROPERTY, PLANT, AND EQUIPMENT, NET
Property, plant, and equipment consisted of the following (in thousands):
December 31,
2010 2009
Land and improvements ........................................... $ 16,898 $ 16,557
Building and improvements ........................................ 144,004 147,093
Machinery and equipment ......................................... 193,104 184,721
Furniture and fixtures ............................................. 46,147 44,158
Leasehold improvements .......................................... 62,884 57,866
Construction in progress ........................................... 9,775 8,932
472,812 459,327
Less accumulated depreciation ...................................... (250,999) (223,887)
$ 221,813 $ 235,440
NOTE 7—INTANGIBLE ASSETS AND GOODWILL
Identifiable intangible assets consisted of the following (in thousands):
December 31, 2010 December 31, 2009
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Intangible assets subject to amortization:
Patents and purchased technology . . . $14,198 $(1,196) $13,002 $ 898 $(643) $ 255
Intangible assets not subject to
amortization:
Trademarks and trade names ....... 27,421 27,421 26,872 26,872
Identifiable intangible assets, net .... $40,423 $27,127
On September 1, 2010, the Company acquired OutDry Technologies S.r.l., which included patents,
purchased technology and trademarks. These acquired patents and purchased technology are subject to
amortization over 10 years from the date of acquisition.
Amortization expense for the years ended December 31, 2010, 2009, and 2008 was $553,000, $109,000 and
$205,000, respectively. Amortization expense for intangible assets subject to amortization is estimated to be
$1,402,000 per year in 2011 and 2012 and $1,330,000 in 2013 through 2015.
At December 31, 2010 and December 31, 2009, the Company determined that its goodwill and intangible
assets were not impaired. At December 31, 2008, the Company determined that goodwill and trademarks for
certain acquired brands were impaired. These brands were acquired in 2006 and were not achieving their sales
and profitability objectives. For the year ended December 31, 2008, the Company recorded impairment charges
in the United States segment, before income taxes, of $24,742,000, of which $4,614,000 was related to goodwill.
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